<PAGE> 1
ENSEMBLE II
Variable Universal Life Insurance
Issued by Chubb Life Insurance Company of America
Distributed by Chubb Securities Corporation
CHUBB AMERICA FUND, INC.
ANNUAL REPORT 1995
Domestic Growth Stock Portfolio
World Growth Stock Portfolio
Growth and Income Portfolio
Emerging Growth Portfolio
Capital Growth Portfolio
Money Market Portfolio
Gold Stock Portfolio
Balanced Portfolio
Bond Portfolio
<PAGE> 2
CHUBB AMERICA FUND, INC.
One Granite Place
Concord, New Hampshire 03301
Dear Policyholder:
Remarkably strong financial markets and several product enhancements made
Ensemble II's tenth anniversary a year to remember.
Favorable economic conditions, including falling interest rates and low
inflation, sparked exceptional returns across virtually all market sectors. As a
result, Ensemble II's domestic stock and fixed income portfolios performed
particularly well. With the advantages of market returns, coupled with the death
benefit protection and favorable tax treatment of variable universal life,
Ensemble II continues to fill a range of personal and business needs for its
nearly 20,000 policyowners. Later in this annual report, our portfolio managers
provide insights into the factors behind each portfolio's performance.
The most notable Ensemble II product enhancement in 1995 was undoubtedly the
addition of the Emerging Growth Portfolio, managed by Massachusetts Financial
Services (MFS). The addition of a small cap equity portfolio reflects our
ongoing commitment to providing policyowners with a full range of high-quality,
complimentary and diversified investment options.
Another important Ensemble II enhancement was our new client statement. A
simplified format and new color graphics enable us to provide more useful
information than ever to our policyowners.
Chubb Life Insurance Company of America is one of the few insurers rated AAA by
Standard & Poors to offer a variable universal life policy with a decade-long
performance record. This milestone further establishes Ensemble II as one of the
insurance industry's premier VUL policies.
In the year to come, we will continue to seek ways to add value to your Ensemble
II policy. All of us at Chubb wish you the best in 1996, and look forward to a
continued prosperous relationship.
Sincerely,
/s/ Ronald R. Angarella
Ronald R. Angarella
President
Chubb America Fund, Inc.
February 7, 1996
<PAGE> 3
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<PAGE> 4
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
World Growth Stock Portfolio
by Richard Sean Farrington, CFA
Templeton Global Advisors, Ltd.
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE WORLD GROWTH STOCK PORTFOLIO
AND THE MSCI WORLD INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WORLD GROWTH 16.35% 14.40% 11.66% 11.71%
- -------------------------------------------------------------------------
MSCI WORLD INDEX 21.33% 12.34% 13.72% 15.00%
- -------------------------------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations August 1, 1985. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the World Growth Stock
Portfolio (the "Portfolio") at its inception with a similar investment in the
MSCI World Index. For the purposes of this graph and the accompanying table, the
average annual total return for the Portfolio reflects all recurring expenses
and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The MSCI World Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
Over the course of the past year, the World Growth Portfolio continued to
implement the basic philosophy originally articulated by Sir John Templeton.
Since most of the major trends impacting the Portfolio are a reflection of this
philosophy, we have highlighted a few of our underlying principles and how they
relate to developments we have seen taking place.
"TO BUY WHEN OTHERS ARE DESPONDENTLY SELLING AND TO SELL WHEN OTHERS ARE
GREEDILY BUYING PAYS THE GREATEST POTENTIAL REWARD."
This principle sounds simple, but is difficult to put into practice. Since the
end of 1994, the World Growth Portfolio has seen its weighting in the U.S. rise,
partly because of performance but also because of new investments identified.
These positions contributed positively to the Portfolio's performance. However,
increasingly there has been a shift in our global bargain list to more emerging
market opportunities with fewer bargains identifiable in the U.S.
Emerging markets have certainly suffered from "despondent selling" over the last
12 months. The events in Mexico at the end of 1994 and the subsequent
devaluation of the Peso led to a 78% decline in the Mexican equity market in
dollar terms. This was the beginning of the end of emerging market euphoria
which had peaked at the end of 1993. By November 1995, emerging markets globally
had fallen roughly 20% from their high in U.S. dollar terms. Specific markets
have shown even more substantial declines. India, Brazil and Columbia have all
declined more than 30% from their peak; Pakistan, Portugal, Venezuela, Argentina
and Indonesia are all 40% or more below their peak; Greece, Sri Lanka, Mexico
and Taiwan have fallen more than 50% below their peak; and Turkey and Poland are
more than 60% below their peak in dollar terms.
We continue to look to find new bargains in these depressed markets just as we
did in Hong Kong toward the beginning of 1995.
"SHARE PRICES FLUCTUATE MORE WIDELY THAN SHARE VALUES."
While volatility is mostly viewed only as risk, for a long term investor it can
often be seen as opportunity. One of the challenges we face when buying
unpopular securities is that we often buy securities that continue to go down
before they recover in price. While this was the case with some of the companies
purchased this year, we believe that the underlying values have not diminished
and that these values will eventually be reflected in share prices.
continued
i
<PAGE> 5
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Securities purchased this year under the pressure of selling include European
cyclical securities. Having seen many of these stocks decline in price due to
investors' concern over the economy or social problems in Europe, we felt that
some of the companies represented good value. Nordic paper companies and
European auto manufacturers were among the stocks purchased. Most have performed
poorly this year hurting our overall returns. However, we continue to
re-evaluate these companies on a daily basis and are confident they will add
value over the longer term. Please refer to pages 2-4 for a complete schedule of
investments.
"TOO MANY INVESTORS FOCUS ON OUTLOOK AND TREND. MORE PROFIT IS MADE BY FOCUSING
ON VALUE."
It is easy to become lost in the debate over the future direction of the economy
or market. We do not claim particular advantage or skill in this regard and
continue to focus on determining the earnings power and asset values of
companies compared to their share prices. Although we use dozens of variables to
determine value, these two yard sticks are among the most helpful. We spend the
majority of our time determining the earning power of a company over a full
business cycle or the market value of a firm's underlying assets of businesses.
Often by focusing on outlooks and trends, money managers begin to guess the best
time to buy and sell stocks. These "market timers" run substantial risks trying
to time non-U.S. market activity. Over the last 10 years, $100 invested in the
EAFE index of non-U.S. stocks has grown to approximately $470. However, if the
six best performing months over the 10 year time period are removed, the $100
would have only risen to $240, illustrating the risk of market timing.
Although we begin our work at the company level, it is often necessary to gauge
certain industry views to accommodate our individual stock selection. For
example, determining the amount of new capacity that may be added to an industry
is critical in determining pricing levels for many goods. Often in our analysis
of companies, certain themes or trends become apparent that are specific to
company valuations rather than overall market or economic predictions. One of
the more notable examples of this in our portfolios today is the improved
financial condition of many cyclical stocks worldwide which are in better
financial condition, generate more free cash flow, and sell at steeper discounts
relative to earnings or the replacement value of their assets. We are
comfortable, therefore, holding a number of European cyclical stocks in our
portfolio despite the extended business cycle.
In 1996, we will continue to build and improve our ability to serve you while
maintaining our traditional values and principles. We appreciate your continued
support and look forward to serving your interests and earning your continued
confidence in the future.
ii
<PAGE> 6
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
MONEY MARKET PORTFOLIO
by Thomas J. Swartz, III
Chubb Asset Managers, Inc.
The primary purpose of the Portfolio is to provide an investment vehicle that
minimizes credit quality risk and net asset fluctuations. The Portfolio
continues to meet this objective by investing in the highest quality short-term
investment vehicles, U.S. Government Securities. Given the narrow yield
differential between U.S. Government Securities and lesser quality alternative
investments such as commercial paper, we continue to feel it is prudent to
invest exclusively in government securities.
The U.S. economy during 1995 experienced steady but modest growth and subdued
inflation. Tightening by the Federal Reserve in early 1995 was followed by rate
cuts in July and December, resulting in a Fed Funds rate which ended the year
unchanged from the level at the start of 1995.
We expect economic growth during 1996 to be close to the Federal Reserve's
target range of 2.5%, accompanied by inflation which remains below 3%. Given
this scenario, the Federal Reserve may have latitude to reduce short term rates
before real rates over stimulate the economy. The Portfolio continued to be an
attractive investment alternative, given the still high short-term interest
rates relative to long-term bond yields, continued low consumer price inflation,
and stable net asset values.
GOLD STOCK PORTFOLIO
by Lucille Palermo, CFA
Van Eck Associates Corporation
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE GOLD STOCK PORTFOLIO,
THE S&P 500 INDEX AND THE LIPPER GOLD FUND INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR 10 YEAR INCEPTION
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GOLD STOCK 2.76% 5.88% 5.71% 5.43%
- -----------------------------------------------------------------------
S&P 500 INDEX 37.45% 16.53% 14.07% 15.86%
- -----------------------------------------------------------------------
LIPPER GOLD FUND INDEX 4.84% 6.89% 10.59% 6.18%
- -----------------------------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations August 1, 1985. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Gold Stock
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 Index and the Lipper Gold Fund Index. For the purposes of this graph and
the accompanying table, the average annual total return for the Portfolio
reflects all recurring expenses and includes the reinvestment of all dividends
and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index and the Lipper Gold Fund Index are unmanaged indexes and
include the reinvestment of all dividends, but do not reflect the payment of
transaction costs, advisory fees or expenses that are associated with an
investment in the Portfolio.
During 1995, your portfolio's net asset value rose 2.76%, compared to an average
gain of 2.5% for the 33 precious metals funds monitored by Micropal Inc., a
mutual fund evaluation service, and to a 37.45% gain for the S&P 500 Composite
Index. During the same period, the price of gold bullion rose just 1%,
reflecting the low volatility in the gold price that characterized most of the
year. However, the low price volatility masked a great deal of activity in a
very healthy market supported on the downside by strong physical demand,
particularly from emerging markets, but capped on the upside by very heavy
forward sales from mining companies and by central bank selling. In turn, the
continued
iii
<PAGE> 7
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
dull bullion price discouraged investment buying in the West, where soaring
financial assets were the major attraction.
By November, the producer forward selling led to such demand for bullion by
dealers (who need to borrow gold to cover their exposure as counterparty to the
producers forward sales) that overnight gold lease rates charged on borrowed
gold rose to 12% from their more normal 2-3%, which sent gold into backwardation
for the first time in 20 years. The surge in lease rates drew attention not only
to the short-term shortage of bullion, but also to its longer-term healthy
fundamentals - declining mine production, growing fabrication demand (jewelry,
coins, etc.), and the reduced benefits to producers of forward selling now that
the forward premium for a one-year contract is about 3%, versus about 6% a year
ago.
Gold shares put in very mixed performances in 1995, declining on average 26% in
South Africa and 7% in Australia, but rising about 10% in North America. The
weakness in the Australian gold mining index last year belied a very robust
performance by the shares of several companies whose managements succeeded in
adding to reserves either by acquisition or by exploration or that were the
subject of takeovers. We continue to believe Australia offers some of the best
exploration potential worldwide, particularly from those companies beginning to
venture into West Africa and Indonesia. In addition, the Australian industry is
in a consolidation phase and the potential for shareholder gains from corporate
activity has added a further positive dimension to investment there. At year-end
1995, your portfolio was 17% invested in Australian gold shares.
In the U.S., the investment climate continued to be dominated by environmental
concerns and permitting delays on the negative side and additions to reserves on
the positive. Newmont shares were among the best performers as management has
plotted an aggressive course for growing production and proving up reserves.
Your portfolio was 36% invested in U.S. gold shares at year-end.
Last year saw a number of "turnaround" situations in Canada regain favor among
investors (Echo Bay) among the large-cap companies, while a few smaller names
(Dayton, Bema) benefitted from anticipation of the start-up of new mines. At
year-end 1995, Canadian shares made up 36% of your portfolio, because we believe
the Canadian producers have been the most successful at securing growth through
global exploration and development. Please refer to page 6 for a complete
schedule of investments.
OUTLOOK
We believe that gold market fundamentals are healthy for several reasons:
- - PHYSICAL DEMAND, which had declined after the sharp price run-up in 1993,
rebounded significantly last year according to the World Gold Council. In
fact, both fabrication demand (80% of total demand) and total demand
reached record levels in 1995. Importantly, the demand has returned at
ever-higher prices, with little "sticker price shock" evident yet.
- - MINE SUPPLY, which saw its first absolute decline in nearly 15 years in
1994, declined further in 1995, primarily due to another appreciable
decrease in South African output (to its lowest level in 40 years). This
year may see some improvement, but not likely from South Africa, where many
analysts expect a further 2-3% decline in production.
- - CENTRAL BANK SALES from monetary reserves have diminished from the very
high levels of 1992 and 1993. We believe outright sales by the official
sector will continued to be moderate because most of the selling in the
late Eighties/early Nineties came from countries in economic distress who
were selling their reserves to keep their systems afloat. Most of those
countries have little or no gold reserves left to sell.
- - PRODUCER HEDGING PROGRAMS appear to have impacted the gold market more
heavily in 1995 than in recent years. The static gold price and attractive
contangoes of 6% most
continued
iv
<PAGE> 8
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
of the year (which meant a gold miner could contract to get $20 to $25 an
ounce more by selling his production one year forward) made hedging a most
profitable exercise. Today's firmer gold price and smaller contango ($12 an
ounce) has made hedging less attractive and indications are that mining
companies are slowing their hedging activity significantly.
- - WESTERN INVESTMENT DEMAND, noticeably absent in recent years, is rebounding
in the face of lofty valuations for financial assets and the likelihood
that most global monetary authorities will resort to currency debasement to
get their economies going, just as they have always done in the past. Gold
will then prove itself to be the ultimate currency hedge - an owned asset
and no one's liability.
DOMESTIC GROWTH STOCK PORTFOLIO
by Robert Benson
Pioneering Management Corporation
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE DOMESTIC GROWTH PORTFOLIO
AND THE S&P 500 INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------------
<S> <C> <C> <C>
DOMESTIC GROWTH 29.72% 22.21% 13.70%
- ---------------------------------------------------------------
S&P 500 INDEX 37.45% 16.53% 13.89%
- ---------------------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations April 18, 1986. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Domestic Growth
Stock Portfolio (the "Portfolio") at its inception with a similar investment in
the S&P 500 Index. For the purposes of this graph and the accompanying table,
the average annual total return for the Portfolio reflects all recurring
expenses and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
The economy grew at a decelerating rate throughout 1995 leading to a declining
interest rate environment. With reported earnings strong and interest rates low,
the stock market exhibited exceptional strength. Large capitalization and
technology stocks led to the market charge with smaller capitalization, retail
and healthcare stocks lagging behind.
In this environment, the Domestic Growth Stock Portfolio achieved a total return
of 29.72% versus 37.45% for the S&P 500 Index. The Portfolio's focus on
smaller/medium sized growth companies hindered performance somewhat, however,
the current portfolio mix continues to offer very good value relative to the
overall stock market.
A sector of the Portfolio that appreciated very strongly was financial-banks and
insurance companies. Stocks such as American Bankers Inc., TIG Holdings, Inc.,
UNUM Corporation, Aames Financial Corp., Meridian Bancorp, Inc. and Great
Western Financial had total returns in excess of 45%. Metals & Mining stocks
such as Roanoke Electric Steel Corp. and A.M. Castle & Co., and capital goods
stocks such as Sunstrand Corp. and NN Ball & Roller, Inc. also performed very
well. The technology sector was represented by strong performers such as Data
General Corporation. Two areas of underperformance were healthcare and consumer
related. Although in each sector the Portfolio had strong performance from
stocks such as Medisense and Nine West Group helping to offset the weaker
holdings.
The outlook for 1996 has to be guarded considering the overall performance of
both the economy and the stock market in 1995. By concentrating on individual
stocks rather than on macro themes, the Portfolio is well positioned whether
interest rates stay low or begin to increase later on in the year due to
increased economic activity. Technology stocks on a very select basis should
continue to outperform and we expect the healthcare stocks to begin to shine
again.
v
<PAGE> 9
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
BOND PORTFOLIO
by Ned I. Gerstman
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE BOND PORTFOLIOAND THE LEHMAN
BROTHERS GOVERNMENT BOND INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------------
<S> <C> <C> <C>
BOND 16.76% 8.98% 7.70%
- ---------------------------------------------------------------
LEHMAN BROS GOVT BOND INDEX 18.34% 9.37% 8.74%
- ---------------------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations April 18, 1986. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Bond Portfolio
(the "Portfolio") at its inception with a similar investment in the Lehman
Brothers Government Bond Index. For the purposes of this graph and the
accompanying table, the average annual total return for the Portfolio reflects
all recurring expenses and includes the reinvestment of all dividends and
distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The Lehman Brothers Government Bond Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of transaction
costs, advisory fees or expenses that are associated with an investment in the
Portfolio.
After one of the worst performance years on record for the bond market in 1994,
last year turned out to be one of the best performance years on record. After
tightening monetary policy six times during 1994, the Federal Reserve tightened
for the final time of this economic cycle in February of 1995. It became clear
not long after that final move to higher rates that the economic expansion, that
had been fueled by the massive monetary easing from 1991 through 1993, was
running out of momentum. The combination of Federal Reserve action during 1994,
expectations of cyclical pressures to higher inflation and the unwinding of
leveraged yield curve arbitrage trades (Orange County, etc.), helped to push
interest rates higher in 1995 than fundamentals warranted. During 1995 GDP
growth slowed from 3.5% to approximately 2.1%, industrial production growth
slowed from 5.8% to 3.3%, average monthly non-farm payroll growth slowed from
294,000/month to 141,000/month and inflation as measured by the overstated
Consumer Price Index rose marginally from 2.6% to 2.8%. This fundamentally
favorable economic environment allowed the Federal Reserve to reverse the course
of monetary policy from a tightening to an easing mode. All of the upward
interest rate bias that had been built into the yield curve during 1994 was
completely unwound during 1995. The result was significant capital appreciation
in bond funds as interest rates plunged.
For 1995, the Bond Portfolio had a rate of return of 16.76%. A combination of
call protected Treasury and higher yielding mortgage backed securities gave us
the portfolio balance that we seek to have our targeted intermediate maturity
profile. We outperformed both the Lipper General U.S. Government and
Intermediate U.S. Government bond categories which had returns of 16.54% and
14.59% respectively.
We expect that 1996 will be another good year for bond funds although not as
good as the exceptional 1995. The slow economic environment along with low
inflation and progress on the fiscal policy front will allow the Federal Reserve
to continue on their monetary easing path. The yield curve has priced in further
easing so we suspect that the capital appreciation potential in the bond market
is less than last year. We will more likely structure the portfolio with a
somewhat more defensive posture stressing yield spread product such as slight
premium mortgage backed securities. Given our outlook for moderately falling
intermediate term yields, this strategy should provide rewarding for our
investors.
vi
<PAGE> 10
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
GROWTH AND INCOME PORTFOLIO
by David K. Schafer and Robert Witkoff
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE GROWTH AND INCOME PORTFOLIO
AND THE S&P 500 INDEX AVG.
<TABLE>
<CAPTION>
ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
- --------------------------------------------------
<S> <C> <C>
GROWTH & INCOME 33.58% 13.49%
- ------------------------------------------------
S&P 500 INDEX 37.45% 14.69%
- ------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations May 1, 1992. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Growth and Income
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 Index. For the purposes of this graph and the accompanying table, the
average annual total return for the Portfolio reflects all recurring expenses
and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
Nineteen ninety five was truly an outstanding year for the U.S. stock market;
benefiting from ideal conditions for financial assets. Capitalizing on this
environment, your portfolio rose 33.58% in 1995 versus a 37.45% rise for the S&P
500. It doesn't get much better for the financial markets than the near perfect
market conditions that they operated in for most of 1995. The following were the
main contributing factors to the widespread appreciation in financial assets.
- - The U.S. economy continued to boast the best of all worlds; moderate
economic growth and modest inflation.
- - U.S. interest rates fell most of the year and the Federal Reserve cut
interest rates moderately in both July and December of 1995.
- - Corporate profits continued to exceed Wall Street expectations while rising
at double digit rates for most of the year.
- - Equity mutual funds continued to experience record levels of cash inflows.
- - Merger and acquisition activity was strong throughout the year.
No matter how you assess the U.S. stock market advance last year, the most
impressive part of the surge was the breadth of the advance and its historical
perspective. Much attention was showered on the Dow's breakthrough of two
millenniums (4000 and 5000) but the good fortune spread to many of other broad
market averages. For instance, the NASDAQ market rose 41.12%, Russell 2000
28.45%, and the S&P 500 37.45%. Leadership was most notable in the technology
and financial related industries and in fact out performance was almost
impossible without some exposure in these two sectors, but many other industries
shared in the party. Interestingly, 1995 marked a record fifth year without a
10% correction in the stock market. Moreover, the market was never down more
than 4% in the entire year. For stock market historians, 1995 was the best year
for U.S. stocks since 1958, the second 30 percent plus year this decade (30.55%
in 1991) and the sixth best year since 1926.
The huge runup in stock prices triggered many opportunistic changes in our
portfolio. On the sell side we eliminated the following positions in 1995:
Anheuser-Busch, Baxter, Boeing, Polaroid, Telemex, and Toll Bros. We were also
the beneficiary of three takeovers last year: E-Systems, Fleet Mortgage, and
First
continued
vii
<PAGE> 11
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Federal of Michigan. The following stock positions were initiated in 1995:
Archer-Daniels-Midland Companies, Atlantic Richfield Co., Borg-Warner
Automotive, Inc., Canadian Pacific, Ltd., Federal Express, Hanson PLC, Asia Pulp
& Paper Co., Ltd., and YPF Sociedad Anonima. As always, we employed the same
disciplined long term approach for our stock selection. We invested in
securities whose price/earnings ratios were less than that of the S&P 500,
although our analysis showed they had higher prospective earnings growth rates.
Conversely, we sold those stocks that no longer met these investment standards.
A complete schedule of investments is shown on pages 10 and 11.
We are cautiously optimistic regarding the overall outlook for 1996. On the
positive side, economic growth is slowing, but modestly positive, while
inflation is still subdued. Interest rates in this environment should head lower
and cash continues to pour into the stock market. From a historical vantage
point, stocks have advanced in 10 of the last 12 presidential election years.
Reasons for caution are slowing corporate profits and a possible pullback given
last year's well above average returns. The end result should be further stock
market advances, but much slower and narrower in scope than last year. This will
require even more focus on individual stock selection.
Diversification continued to be monitored closely in 1995. To assure proper
diversification, no more than 20% of the portfolio was invested in any one
industry group and no one security represented more than 3% of the portfolio's
market value when purchased. Global securities continue to provide extra value
for our portfolio. As of December 31, 1995 foreign securities represented 11.47%
of the funds market value.
We believe our disciplined value approach will continue to reward our
shareholders over the long term.
CAPITAL GROWTH PORTFOLIO
by Helen Y. Hayes
Janus Capital Corporation
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE CAPITAL GROWTH PORTFOLIO
AND THE S&P 500 INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
- --------------------------------------------------
<S> <C> <C>
CAPITAL GROWTH 41.74% 23.61%
- ------------------------------------------------
S&P 500 INDEX 37.45% 14.69%
- ------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations May 1, 1992. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Capital Growth
Portfolio (the "Portfolio") at its inception with a similar investment in the
S&P 500 Index. For the purposes of this graph and the accompanying table, the
average annual total return for the Portfolio reflects all recurring expenses
and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index is an unmanaged index and includes the reinvestment of all
dividends, but does not reflect the payment of transaction costs, advisory fees
or expenses that are associated with an investment in the Portfolio.
In the history of U.S. financial markets it is hard to find a better environment
than existed in 1995. Low interest rates, low inflation, and excellent corporate
earnings fueled a broad market advance, and both equities and fixed-income
securities produced some of the best results of the last fifty years.
continued
viii
<PAGE> 12
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Despite the sharp pullback in technology and telecommunications sectors, which
were market leaders for much of the year, the advance continued through the
fourth quarter, although returns did not maintain the blistering pace set in the
previous nine months.
The Standard & Poor's 500 Index gained 6.02% during the quarter while the
Capital Growth Portfolio was up 8.03%. For the year the Capital Growth Portfolio
returned 41.74%, versus 37.45% for the S&P 500 Index. Good individual stock
selection was the key to portfolio performance. Technology stocks, although not
a large percentage of assets this year, also helped results. During the quarter
I made an effort to lock in gains and avoid the downdraft that sent technology
prices lower, and so many of our technology holdings such as A.D.A.M. Software,
Visioneer, Microcom, Computron Software, Computer Horizons, and Discreet Logic
were liquidated.
Overseas, most markets did not keep pace with the U.S. Even though key European
interest rates fell in 1995, on the whole rates remained stubbornly higher and
kept returns in the larger markets of Germany, France, and the U.K. in check.
Nevertheless, the potential of our European growth stocks, especially in the
pharmaceutical, medical, and printing areas, remains compelling. Both Roche
Holdings, AG Genusshein, and Smithkline Beecham enjoy strong balance sheets,
excellent earnings growth, and profitable product lines, and all sell at lower
PE multiples than similar growth stories in the U.S. Wolters Kluwer is also
building a market franchise through acquisitions of professional printing and
publishing companies in both Europe and the U.S.
On the domestic front the portfolio had a number of standouts during the
quarter. HFS, Inc. (formerly Hospitality Franchise) is the franchisor of many
popular hotel and motel chains, including Howard Johnson's, Ramada, and Super 8.
The company recently acquired real estate broker Century 21, and is applying the
same profitable cross-selling strategy it uses in the hotel business to the
residential real estate market. One of our new acquisitions, Amre, Inc.,
provides an example of the HFS, Inc.'s strategy. Amre, Inc. contracts with Sears
to do home remodeling and now has entered into an agreement with HFS, Inc. for
referrals from Century 21's customer base. Other outstanding performers during
the quarter were Pittway Corp., which designs and markets electronic security
systems, and Sun Microsystems, which appreciated earlier in the year, then gave
back some of its gains in the fourth quarter. Sun was a significant holding,
however, because it has an excellent product line -- commercial workstations and
networks used in conjunction with the Internet. Sun also has a new computer
programming language called JAVA that, though still in the testing phase, is
already getting a lot of attention from software developers. Finally, Estee
Lauder Companies was purchased in an initial public stock offering (IPO). Lauder
continues to add to its already powerful market position and so I am holding the
stock, even though it has appreciated substantially.
Federated Department Stores, Boise Cascade, and American Standard were reduced
or sold profitably, as was APAC Teleservices, which provides marketing and
customer service programs to business, and Nellcor, a manufacturer of medical
equipment. In the loss column, I eliminated Hollywood Entertainment, a video
rental chain, and trimmed Kinnevik, the Swedish conglomerate. A complete
schedule of investments is provided on pages 12 and 13 for your reference.
I expect increased volatility in the equity markets in 1996, but moderate
economic growth and low interest rates should continue to provide a favorable
environment for stocks. Market volatility can also have the positive effects of
creating buying opportunities and increasing demand for high-quality growth
stocks that have more predictable earnings streams. These stocks are at the core
of our investment discipline in the Capital Growth Portfolio.
Thank you for your continued investment.
ix
<PAGE> 13
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
BALANCED PORTFOLIO
by Melanie Reichl
Phoenix Investment Counsel, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE BALANCED PORTFOLIO AND THE
S&P 500 INDEX AND THE 55% S&P500/35%
LEHMAN AGGREGATE/10% 90 DAY T-BILL INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 1 YEAR INCEPTION
- ---------------------------------------------
<S> <C> <C>
BALANCED 22.35% 10.26%
- ------------------------------------------
S&P 500 INDEX 37.45% 14.69%
- ------------------------------------------
BALANCED BENCHMARK 27.23% 11.52%
- ------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations May 1, 1992. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Balanced Portfolio
(the "Portfolio") at its inception with a similar investment in the S&P 500
Index and the 55% S&P 500/35% Lehman Aggregate/10% 90 Day T-Bill Index. For the
purposes of this graph and the accompanying table, the average annual total
return for the Portfolio reflects all recurring expenses and includes the
reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The S&P 500 Index and the 55% S&P 500/35% Lehman Aggregate/10% 90 Day T-Bill
Index are unmanaged indexes and include the reinvestment of all dividends, but
do not reflect the payment of transaction costs, advisory fees or expenses that
are associated with an investment in the Portfolio.
The Balanced Portfolio returned 22.35% for the year ending December 31, 1995,
compared with 27.23% for the Balanced Benchmark (55% S&P 500 Index; 35% Lehman
Brothers Aggregate Bond Index; 10% Salomon Brothers Three-month Treasury-Bill
Index).
While there were several factors that affected portfolio performance over the
past year, an underweighting in equities throughout the year versus the Balanced
Benchmark was the primary contributor to underperformance relative to the
Balanced Benchmark. Cash holdings served as a drag on performance throughout the
year as both the stock and bond markets soared.
More specifically on the equity side of the portfolio, overweighted positions
relative to the S&P 500 during the latter half of the year in technology and
financial services sectors added significantly to strong second half
performance. This, in conjunction with a greater allocation to equities in
general, offset weakness that occurred in the earlier part of 1995. Emphasis on
several investment themes during the second half of the year also led to strong
performance, namely exposure to our Hybrid Network, Deregulating Financial
Services, and 21st Century Medicine themes.
Within our fixed income holdings, a shorter than the benchmark duration in the
declining interest rate environment in the first eight months of 1995 detracted
from relative performance. However, during the third and fourth quarters, we
enhanced relative performance through increased exposure to the mortgage backed
and municipal sectors.
The equity environment was remarkably strong in 1995, with the S&P 500 up
37.45%, an accomplishment not seen since the Eisenhower Administration in 1958.
The dynamic combination of falling interest rates and accelerating earnings
growth drove the stock market to all time highs in 1995. Treasury bond rates
dropped nearly 200 basis points, beginning the year near 8% and ending it close
to 6%. Earnings gains were abundant with S&P 500 earnings up 20% (estimated) on
the heels of 40% gain for 1994. Since most stocks had strong earnings
comparisons in 1995, growth-style investing had difficulty outperforming the
market averages.
continued
x
<PAGE> 14
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
Market leadership was concentrated in technology and financials during the first
half of 1995, but market crosscurrents began to develop at mid-year, fragmenting
the uniformly strong group performance within the leading sectors. The change
was most noticeable in technology, with semiconductors lagging far behind the
outperforming computer networking group, heavily represented in our Hybrid
Network theme. As earnings growth began to slow in the second half, earnings
predictability became a virtue, causing healthcare stocks and our 21st Century
Medicine theme to take on market leadership. Further crosscurrents were evident
when comparing large and small cap performance in 1995. Except for a sharp small
cap rally in the summer, large cap stocks dominated all year, with the S&P 500
outperforming the Russell 2000 by 9%.
The powerful forces of 1995 are diminishing as we enter the new year. Interest
rates are likely to settle into a 6-7% trading range since a significantly
easier Federal Reserve policy has been widely anticipated and is reflected in
current prices. While stable interest rates are not unfavorable for stocks,
interest rate upswings can contribute to increasing stock market volatility and
in general, a more turbulent investment environment. We believe the stock market
is likely to follow bonds into an extended trading range which could well
include a 10-15% price correction. In addition, market leadership may shift to
smaller cap stocks, as 1996 unfolds, since many of these companies represent
young and dynamic industries with superior growth prospects. Expectations are
low and earnings growth high, a combination which often leads to positive
earnings surprises.
While we expect 1996 will be filled with cross-currents and increased
volatility, our thematic investing approach highlights a number of opportunities
for the coming year. We continue to emphasize theme development and stock
selection in what we see as a year of changing market leadership. As we entered
1996, our asset allocation stood at 58% equity, 38% bonds, and 15% cash
equivalents. Going forward, we intend to more closely align our allocation with
that of its market benchmark. Growth investing should have a distinct advantage
in the coming year as earnings growth slows and we plan to take advantage of
market volatility to build positions in growth themes.
xi
<PAGE> 15
CHUBB AMERICA FUND, INC.
REPORTS OF THE PORTFOLIO MANAGERS
EMERGING GROWTH PORTFOLIO
by John Ballen
Massachusetts Financial Services
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN THE EMERGING GROWTH PORTFOLIO
AND THE RUSSELL 2000 GROWTH INDEX
<TABLE>
<CAPTION>
AVG. ANNUAL TOTAL RETURNS 4TH QTR YTD INCEPTION
- ----------------------------------------------------------
<S> <C> <C> <C>
EMERGING GROWTH 3.51% 32.91% 32.91%
- --------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 1.48% 22.39% 22.39%
- --------------------------------------------------------
</TABLE>
[GRAPH]
Commencement of operations May 1, 1995. Past performance is not predictive of
future performance.
This graph compares an initial $10,000 investment made in the Emerging Growth
Portfolio (the "Portfolio") at its inception with a similar investment in the
Russell 2000 Growth Index. For the purposes of this graph and the accompanying
table, the average annual total return for the Portfolio reflects all recurring
expenses and includes the reinvestment of all dividends and distributions.
Shares of the Portfolio are offered only through divisions of Chubb Separate
Account A established by Chubb Life Insurance Company of America to fund
flexible premium variable life insurance policies. Total returns do not reflect
any separate account expenses imposed on the policies which include a 2.5%
premium tax charge, account fees, cost of insurance, mortality expenses and
surrender charges.
The Russell 2000 Growth Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of transaction
costs, advisory fees or expenses that are associated with an investment in the
Portfolio.
This past year was a very good year for the U.S. market and the Emerging Growth
Portfolio. The portfolio's total return since its inception on May 1, 1995 was
32.91%, compared with a 22.39% return for the Russell 2000 Growth Index.
The moderate growth, low interest rate environment of 1995 was an ideal
background for emerging growth companies. The portfolio's performance benefited
from strong performance of its technology holdings-primarily software,
networking, and semiconductors-which showed robust earnings growth. Oracle
Systems Corp. (database software), System Software Associates, Inc.
(manufacturing application software), and Informix Corporation (database
software and tools) reported better than expected earnings, and their stocks
responded positively. Other strong contributors included networking stocks such
as Cabletron Systems, Inc. and Bay Networks, Inc.
Our leisure stocks also helped performance. HFS, Inc., the nation's largest
franchiser of hotels and real estate companies saw its stock price more than
double this year, as accelerating earnings and acquisitions such as Century 21
assured investors of its future growth prospects. We believe HFS, Inc. had one
of the most astute management teams around, and the stock remains the fund's
largest holding.
Healthcare stocks had a mixed performance this year. We established major
positions in this sector to take advantage of what we believed to be depressed
price levels caused by investor confusion over the effect of lower Medicare
reimbursement levels. While our timing was early and hurt the performance of the
fund in the spring of 1995, the stocks have recently responded positively, a
trend which we believe will continue.
In 1995, companies which were able to deliver better than expected earnings
growth moved higher, and we believe this trend will continue. Our largest
concentration continues to be in technology which we believe will continue to
show the strongest earnings gains of any group in 1996. We are also positive on
the health care service and consumer sectors. Both groups performed poorly in
1995, and we believe their stock prices are still depressed. Companies that help
contain healthcare costs should ultimately benefit from the cost reduction
initiatives in Washington. Also, low interest rates and moderate economic growth
should eventually help the consumer sector.
As a result, we believe 1996 could be the fifth consecutive year of above
average earnings gains for the S&P 500 and emerging growth stocks. We also
believe that our strategy of finding rapidly growing companies, early in their
development, and growth stocks at reasonable prices will reward investors in
1996.
xii
<PAGE> 16
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION
WORLD GROWTH STOCK PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
Swiss Reinsurance, Inc. 2.84%
Banco Popular Espanol 2.40%
Bank of Ireland 2.25%
Astra AB, Class B 1.78%
Fletcher Challenge, Ltd., Forestry Division 1.34%
Hitachi, Ltd. 1.31%
Potash Corp. of Saskatchewan, Inc. 1.26%
International Paper Company 1.23%
MCI Communications Corp. 1.22%
U.S. Healthcare, Inc. 1.21%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN COUNTRIES PORTFOLIO
<S> <C>
United States 36.44%
Spain 6.32%
United Kingdom 5.97%
Switzerland 5.21%
Hong Kong 4.46%
Netherlands 4.42%
Sweden 4.09%
Australia 3.80%
France 3.54%
New Zealand 3.24%
</TABLE>
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
PORTFOLIO QUALITY
<TABLE>
<CAPTION>
% OF
RATING PORTFOLIO
<S> <C>
AAA 100.00%
</TABLE>
DOLLAR WEIGHTED AVERAGE MATURITY
<TABLE>
<CAPTION>
RATING DAYS
<S> <C>
AAA 20.95
</TABLE>
- --------------------------------------------------------------------------------
xiii
<PAGE> 17
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION - (CONTINUED)
GOLD STOCK PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
Barrick Gold Corp. 5.42%
Newcrest Mining, Ltd. 5.15%
Homestake Mining Company 4.84%
Echo Bay Mines, Ltd. 4.51%
Newmont Mining Corporation 4.31%
Dayton Mining Corporation 4.08%
Battle Mountain Gold Co., Inc. 4.04%
Freeport McMoran Copper & Gold, Inc. 3.81%
Newmont Gold Co. 3.57%
Placer Dome, Inc. 3.28%
<CAPTION>
% OF
COUNTRY COMPOSITION PORTFOLIO
<S> <C>
United States 47.06%
Canada 33.97%
Australia 16.23%
Ghana 2.74%
</TABLE>
- --------------------------------------------------------------------------------
DOMESTIC GROWTH STOCK PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
N.N. Ball & Roller, Inc. 2.61%
Data General Corporation 2.24%
Apria Healthcare Group, Inc. 2.04%
PNC Banc Corp. 2.04%
Paragon Trade Brands, Inc. 2.02%
Kelly Services, Inc., Class A 2.01%
Western National Corp. 1.97%
A.M. Castle & Co. 1.96%
EMC Corporation/Mass 1.95%
Westinghouse Electric Company 1.94%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Insurance 8.56%
Health Care 6.96%
Computer Software & Services 6.33%
Financial Services 6.00%
Real Estate 5.85%
Computer & Office Equipment 5.04%
Medical Supplies 4.84%
Automotive Parts & Accessories 3.85%
Machinery 3.85%
Computers 3.69%
</TABLE>
- --------------------------------------------------------------------------------
xiv
<PAGE> 18
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION - (CONTINUED)
BOND PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
PORTFOLIO QUALITY
<TABLE>
<CAPTION>
% OF
RATING PORTFOLIO
<S> <C>
AAA 99.43%
A 0.57%
</TABLE>
DOLLAR WEIGHTED AVERAGE MATURITY
<TABLE>
<CAPTION>
RATING YEARS
<S> <C>
AAA 17.07
A 6.21
</TABLE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
Redman Industries, Inc. 3.42%
W.R. Berkley Corp. 2.98%
YPF Sociedad Anonima, S.A., ADR 2.84%
Federal Express 2.80%
First Chicago NBD Corporation 2.74%
Borg Warner Automotive, Inc. 2.73%
May Department Stores Company 2.71%
KeyCorp 2.70%
Archer-Daniels-Midland Companies, Inc. 2.69%
Philip Morris Companies, Inc. 2.69%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Insurance 8.12%
Financial Services 6.92%
Food Processing 5.39%
Oil - Domestic 5.38%
Automotive-Parts & Accessories 5.35%
Banks 5.12%
Mining & Metals 4.50%
Transportation 4.45%
Retail - Specialty 4.38%
Building & Construction 3.42%
</TABLE>
- --------------------------------------------------------------------------------
xv
<PAGE> 19
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION - (CONTINUED)
CAPITAL GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
Pittway Corp. 5.47%
HFS, Inc. 3.37%
General Motors Corp., Class E 2.89%
Nabisco Holdings Corp. 2.83%
Amre, Inc. 2.79%
Estee Lauder Companies, Class A 2.55%
Mattel, Inc. 2.29%
MDL Information Systems, Inc. 2.27%
Smithkline Beecham, ADR 1.98%
Pfizer, Inc. 1.88%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Software Products & Services 10.70%
Financial Services 6.97%
Pharmaceuticals 6.53%
Electronics 5.59%
Commercial Services 4.27%
Retail 3.71%
Lodging & Restaurants 3.70%
Food Processing 3.57%
Manufacturing 3.11%
Restaurants & Food Service 2.88%
</TABLE>
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN LONG-TERM HOLDINGS PORTFOLIO
<S> <C>
U.S. Treasury Notes & Bonds 28.83%
Government National Mortgage Association 3.33%
Nabisco Holdings Corp. 1.31%
Kimberly Clark Corp. 1.28%
Medtronic, Inc. 1.21%
Texaco, Inc. 1.21%
Equifax, Inc. 1.19%
Guidant Corp. 1.18%
General Electric Company 1.11%
Boeing Co. 1.07%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Communication Systems 5.21%
Telecommunications 4.67%
Insurance 3.43%
Medical - Hospital Mgt. & Services 3.41%
Electronics 3.37%
Restaurants 2.62%
Medical - Biotech 2.39%
Oil Service Equipment 1.76%
Broadcasting 1.72%
Office & Business Equipment 1.68%
</TABLE>
- --------------------------------------------------------------------------------
xvi
<PAGE> 20
CHUBB AMERICA FUND, INC.
PORTFOLIO COMPOSITION - (CONTINUED)
EMERGING GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[GRAPH - CLIENT TO SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
HFS, Inc. 5.09%
United Healthcare Corp. 4.64%
Oracle Systems Corp. 3.84%
Cadence Design Systems, Inc. 2.94%
Autodesk, Inc. 2.60%
Cabletron Systems, Inc. 2.59%
BMC Software, Inc. 2.59%
Micro Warehouse, Inc. 2.02%
Computer Associates International, Inc. 2.02%
CUC International, Inc. 1.89%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Computer Software - Mainframe 21.06%
Insurance 10.75%
Lodging 6.10%
Commercial Services 6.04%
Retail 6.03%
Medical - Hospitals 5.91%
Computer & Office Equipment 5.21%
Computer Software - P.C 4.99%
Electronics 4.05%
Telecommunication 3.09%
</TABLE>
- --------------------------------------------------------------------------------
++ Represents market value of investments plus cash.
xvii
<PAGE> 21
[This page intentionally left blank]
<PAGE> 22
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-88.61%
AEROSPACE EQUIPMENT-1.07%
Textron, Inc.............................................. 11,700 $ 789,750
----------
AUTOMOTIVE MANUFACTURING-1.09%
Volkswagen, AG............................................ 2,400 806,553
----------
BANKING-9.42%
Australia & New Zealand Bank.............................. 42,983 201,753
Banco Popular Espanol..................................... 10,000 1,843,942
Banco Portugues de
Investimento............................................ 17,000 206,545
Bank of Ireland........................................... 236,000 1,729,455
BankAmerica Corp.......................................... 12,000 777,000
Barclays, PLC, ADR........................................ 7,000 316,750
Credit Foncier de France.................................. 9,000 130,297
Kredietbank, NV........................................... 2,550 697,523
National Australia Bank, Ltd.,
ADR..................................................... 11,306 511,597
National Bank of Canada................................... 65,000 530,212
----------
6,945,074
----------
BEVERAGES-1.13%
Embotelladora Andina, S.A.,
ADR..................................................... 23,000 830,875
----------
BUILDING & CONSTRUCTION-1.14%
Corcemar Corp., Class B................................... 65,000 295,802
Sociedade Construcoes Soares
de Costa................................................ 48,100 547,051
----------
842,853
----------
BUILDING MATERIALS-3.91%
Enso-Gutzeit OY........................................... 65,000 434,128
Masco Corporation......................................... 16,400 514,550
Owens-Corning Fiberglas
Corp.+.................................................. 10,000 448,750
Pioneer International, Ltd., ADR.......................... 200,000 516,220
Pioneer International, Ltd................................ 195,000 503,334
Skane-Gripen, AB.......................................... 33,000 468,069
----------
2,885,051
----------
CHEMICALS-2.26%
BASF, AG.................................................. 2,400 541,614
Bayer, ADR................................................ 20,000 528,898
Solvay, S.A............................................... 1,100 594,310
----------
1,664,822
----------
COMMERCIAL SERVICES-1.04%
Jardine Matheson Holdings,
Ltd., ADR............................................... 111,600 764,460
----------
CONSUMER PRODUCTS-1.10%
Ceramco Corp., Ltd........................................ 378,000 442,336
Desc Sociedad de Fomento
Industrial+............................................. 100,000 369,250
----------
811,586
----------
ELECTRONICS-2.25%
Great Wall Electronics, Ltd............................... 720,000 53,064
Hitachi, Ltd.............................................. 100,000 1,008,220
Sony Corporation.......................................... 10,000 600,087
----------
1,661,371
----------
ENERGY SOURCES-0.88%
Total Petroles............................................ 9,600 648,783
----------
ENGINEERING & CONSTRUCTION-1.46%
Celsius Industrier, AB.................................... 19,000 387,040
Internatio-Meuller, NV.................................... 10,000 691,832
----------
1,078,872
----------
ENTERTAINMENT & LEISURE-0.74%
Kuoni..................................................... 340 546,647
----------
ENVIRONMENTAL CONTROL-1.45%
Wheelabrator Technologies,
Inc..................................................... 45,000 753,750
WMX Technologies, Inc..................................... 10,500 313,688
----------
1,067,438
----------
</TABLE>
- -----------
+Non-income producing security.
See notes to financial statements.
1
<PAGE> 23
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
FINANCIAL SERVICES-6.59%
American Express Company.................................. 8,700 $ 359,962
Brierley Investments, Ltd................................. 525,000 415,275
Chile Fund, Inc........................................... 23,140 601,640
Citicorp.................................................. 13,500 907,875
Hutchison Whampoa, Ltd.................................... 132,000 804,091
Invesco Mim............................................... 200,000 787,160
Rhone-Poulenc............................................. 7,800 167,312
Thailand International Fund+.............................. 12 387,000
The Turkey Trust, PLC..................................... 145,000 423,226
----------
4,853,541
----------
FOREST PRODUCTS & PAPER-8.41%
Boise Cascade Corp........................................ 19,000 657,875
Bowater, Inc.............................................. 21,000 745,500
Burlington Northern, Inc.................................. 8,500 663,000
Carter Holt Harvey, Ltd................................... 279,251 602,428
Crown Vantage, Inc.+...................................... 2,200 31,350
Fletcher Challenge, Ltd., Forestry
Division................................................ 720,000 1,026,072
International Paper Company............................... 25,000 946,875
James River Corp. of Virginia............................. 22,000 530,750
Tampella, AB.............................................. 120,000 151,992
Valmet OY................................................. 20,000 502,070
Vital Forsikring, AS...................................... 20,000 338,722
----------
6,196,634
----------
HEALTH & PERSONAL CARE-1.73%
Nationwide Health Properties.............................. 12,000 504,000
Smithkline Beecham, PLC, ADR.............................. 13,900 771,450
----------
1,275,450
----------
INSURANCE-6.19%
National Mutual Asia, Ltd................................. 750,000 678,975
Swiss Reinsurance, Inc.................................... 1,870 2,180,975
U.S. Healthcare, Inc...................................... 20,000 930,000
UNUM Corporation.......................................... 14,000 770,000
----------
4,559,950
----------
MACHINES-DIVERSIFIED-1.06%
Asea, AB.................................................. 8,000 778,608
----------
MANUFACTURING-3.28%
Draka Holding, NV......................................... 24,000 621,338
Pechiney International, S.A............................... 17,000 302,082
Portucel Industrial Empressa,
S.A., ADR+.............................................. 97,000 574,647
SKF....................................................... 48,000 919,843
----------
2,417,910
----------
MINING & METALS-3.95%
DeBeers Consolidated Mines,
Ltd., ADR............................................... 22,000 665,500
Oregon Steel Mills, Inc................................... 14,000 196,000
Potash Corp. of
Saskatchewan, Inc....................................... 13,600 964,774
Sociedad Quimica y Minera
de Chile, ADR........................................... 14,500 681,500
Union Miniere, NPV........................................ 6,000 401,643
----------
2,909,417
----------
OIL DRILLING-0.42%
Parker Drilling Company+.................................. 50,000 306,250
----------
OIL/GAS EXPLORATION-1.05%
Repsol, S.A............................................... 23,600 773,268
----------
OIL - INTERNATIONAL-2.42%
Royal Dutch Petroleum
Co., Ltd., ADR.......................................... 5,000 705,625
Societe Elf Aquitaine, S.A................................ 10,500 774,664
YPF Sociedad Anonima,
S.A., ADR.............................................. 14,000 302,750
----------
1,783,039
----------
PHARMACEUTICALS-4.35%
Ares-Serono, S.A.......................................... 615 432,929
Astra, AB, Class B........................................ 34,500 1,369,126
Ciba-Geigy, AG............................................ 950 838,004
Glaxo Holdings Corp., ADR................................. 20,000 565,000
----------
3,205,059
----------
REAL ESTATE-0.39%
Wereldhave, NV............................................ 5,200 288,710
----------
</TABLE>
- -----------
+Non-income producing security.
See notes to financial statements.
2
<PAGE> 24
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
RETAIL-2.65%
Federated Department
Stores, Inc.+........................................... 13,600 $ 374,000
Karstadt, AG.............................................. 1,300 534,069
The Limited, Inc.......................................... 23,000 399,625
Tesco, PLC................................................ 140,000 645,568
----------
1,953,262
----------
SHIPPING-2.47%
Bergesen, Class B......................................... 20,000 392,538
IHC Caland................................................ 24,000 808,488
Transportation Maritima, S.A.,............................ 45,000 341,672
Unitor Ships Service...................................... 20,000 275,408
----------
1,818,106
----------
TELECOMMUNICATION EQUIPMENT-0.95%
Alcatel Alsthom, CG....................................... 8,079 697,483
----------
TELECOMMUNICATIONS-4.11%
Cable & Wireless, PLC, ADR................................ 22,000 464,750
MCI Communications Corp................................... 36,000 940,500
Stet Societa' Finanziaria Telefonica
S.P.A................................................... 277,700 785,974
Telefonica de Espana, ADR................................. 20,000 837,500
----------
3,028,724
----------
TEXTILES & APPAREL-2.10%
Dawson International, PLC................................. 366,000 613,709
Liz Claiborne, Inc........................................ 24,500 679,875
Yue Yuen Industrial
Holdings, Ltd............................................ 960,000 254,496
----------
1,548,080
----------
TIRE & RUBBER-0.95%
Goodyear Tire & Rubber
Company................................................. 15,500 703,313
----------
TRANSPORTATION & SHIPPING-3.46%
American President Cos., Ltd.............................. 23,000 529,000
Frans Maas Groep, CVA..................................... 17,000 583,285
Helikopter Service, AS.................................... 51,500 627,661
Nedlloyd Groep............................................ 14,000 317,905
Transport Development Group............................... 170,000 493,561
----------
2,551,412
----------
UTILITIES - ELECTRIC & GAS-3.14%
Empresa Nacional
de Electricidad, ADR.................................... 10,000 572,500
Iberdrola, S.A............................................ 90,000 823,464
Shandong Huaneng Power,
ADR..................................................... 38,000 256,500
Texas Utilities Co........................................ 16,000 658,000
----------
2,310,464
----------
TOTAL COMMON STOCK
(Cost $52,553,277)................................... 65,302,815
----------
PREFERRED STOCK-1.56%
BANKING-0.37%
Wells Fargo & Co., Series B............................... 6,270 269,610
----------
BUILDING MATERIALS-0.53%
Kaufman & Broad Home
Corp..................................................... 26,000 386,750
----------
FINANCIAL SERVICES-0.43%
Bangkok Investments Co., Ltd.............................. 2,500 321,250
----------
RETAIL-0.23%
Dairy Farm International
Holding, Ltd.,........................................... 210,000 169,050
----------
TOTAL PREFERRED STOCK
(Cost $1,182,775)..................................... 1,146,660
----------
</TABLE>
- -----------
+Non-income producing security.
See notes to financial statements.
3
<PAGE> 25
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
WORLD GROWTH STOCK PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
COMPANY VALUE (NOTE B)
- ------- ----- --------
<S> <C> <C>
CORPORATE BONDS-2.87%
News Corp. Zero Convertibles,
due 03/31/02 ............USD 459,000 $ 429,739
PIV Investment Finance,
(Cayman) Ltd., Conv., 4.500%,
due 12/01/00 ............USD 840,000 701,400
Softe, S.A., Conv. 4.250%,
due 07/30/98 ............ITL 805,000,000 581,210
TNT Pacific Finance
Conv., 9.000%,
due 07/27/98 ............AUD 550,000 406,058
TOTAL CORPORATE BONDS
(Cost $1,880,267) ..... 2,118,407
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
COMPANY VALUE (NOTE B)
- ------- ----- --------
<S> <C> <C>
SHORT-TERM OBLIGATIONS-10.10%
U.S. Treasury Bill, 4.910%, due
04/04/96 ................................. $5,500,000 $ 5,430,376
U.S. Treasury Bill, 5.220%, due
05/02/96 ................................. 2,045,000 2,011,042
-----------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $7,436,218) ..................... 7,441,418
-----------
TOTAL INVESTMENTS
(Cost $63,052,537*) .................... 103.14% 76,009,300
Other assets, less liabilities ............. (3.14) (2,316,943)
---------- -----------
TOTAL NET ASSETS ........................ 100.00% $73,692,357
========== ===========
</TABLE>
USD - United States Dollar
ITL - Italian Lira
AUD - Australian Dollar
- -----------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
4
<PAGE> 26
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MONEY MARKET PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
----- --------
<S> <C> <C>
SHORT-TERM OBLIGATIONS-103.13%
Federal Farm Credit Bank, 5.640%,
due 01/12/96 ............................... $2,200,000 $2,195,520
Federal Home Loan Bank, 5.650%,
due 01/08/96 ............................... 500,000 499,294
Federal National Mortgage Association, 5.450%,
due 01/19/96 ............................... 750,000 747,729
U.S. Treasury Bill, 4.720%, due 01/18/96 ..... 3,850,000 3,840,409
U.S. Treasury Bill, 5.200%, due 02/29/96 ..... 1,300,000 1,289,861
Total Short-Term Obligations
(Cost $8,571,497) ....... 8,572,813
----------
TOTAL INVESTMENTS
(Cost $8,571,497*) ...... 103.13% 8,572,813
Other assets, less liabilities (3.13) (260,137)
------ ----------
TOTAL NET ASSETS ......... 100.00% $8,312,676
====== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
5
<PAGE> 27
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GOLD STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-92.93%
AUSTRALIA-17.38%
Acacia Resources, Ltd.+ ................. 45,000 $ 81,005
Australian Resources, Ltd. .............. 70,000 71,330
Emperor Mines, Ltd.+ .................... 30,000 47,978
Golden Shamrock Mines,
Ltd.+ ................................. 50,000 30,870
Great Central Mines, N.L.+ .............. 110,000 212,740
Herald Resources, Ltd. .................. 20,500 20,586
Mount Burgess Gold Mining Co.,
N.L.+ ................................. 100,000 19,340
Newcrest Mining, Ltd. ................... 90,000 378,918
Placer Pacific, Ltd. .................... 33,300 68,861
Resolute Samantha, Ltd. ................. 39,286 83,286
Sons of Gwalia, N.L., ADR ............... 5,000 137,616
Wiluna Mines+ ........................... 40,000 41,356
----------
1,193,886
----------
CANADA-36.39%
Barrick Gold Corp. ...................... 15,125 398,922
Bema Gold Corp.+ ........................ 25,000 50,000
Bolivar Goldfields, Ltd.+ ............... 18,000 9,897
Cathedral Gold Corporation+ ............. 15,000 16,497
Dayton Mining Corporation+ .............. 75,000 300,000
Echo Bay Mines, Ltd. .................... 32,000 332,000
El Callao Mining Corp.+ ................. 91,000 40,031
Glamis Gold, Ltd. ....................... 15,000 93,750
Granges, Inc.+ .......................... 30,000 49,491
Hemlo Gold Mines, Inc. .................. 23,374 219,131
Miramar Mining Corp.+ ................... 30,000 146,250
Placer Dome, Inc. ....................... 10,000 241,250
Prime Resources Group, Inc.+ ............ 15,000 103,109
Rayrock Yellowknife+ .................... 5,000 37,578
Solitario Resources Corp.+ .............. 30,000 43,992
TVX Gold, Inc.+ ......................... 15,000 106,875
Teck Corp., Class B ..................... 6,000 117,132
Texas Star Resources Corp.+ ............. 45,000 9,896
Treminco Resources, Ltd.+ .............. 100,000 51,320
Viceroy Resources Corp.+ ................ 30,000 131,979
----------
2,499,100
----------
GHANA-2.93%
Ashanti Goldfields Co., Ltd. ............ 10,000 201,250
----------
UNITED STATES-36.23%
Battle Mountain Gold Co., Inc. .......... 35,000 297,500
Coeur D'Alene Mines Corp. ............... 6,000 102,750
Crown Resources Corporation+ ............ 30,000 148,125
FMC Gold Co. ............................ 22,300 91,987
Freeport-McMoRan Copper &
Gold, Inc. ............................ 10,000 280,000
Homestake Mining Company ................ 22,800 356,250
Newmont Gold Co. ........................ 6,000 262,500
Newmont Mining Corporation .............. 6,999 316,705
Pegasus Gold, Inc.+ ..................... 15,000 208,125
Royal Oak Mines+ ........................ 50,000 178,125
Santa Fe Pacific Gold Corp. ............. 4,200 50,925
Stillwater Mining Company+ .............. 4,500 86,625
USMX, Inc.+ ............................. 55,000 108,279
----------
2,487,896
----------
TOTAL COMMON STOCK
(Cost $5,699,930) ................... 6,382,132
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
COMPANY VALUE (NOTE B)
- ------- ----- --------
<S> <C> <C>
SHORT-TERM OBLIGATIONS-6.55%
G.E. Capital Corporation,
5.550%, due 01/02/96 .................. $ 300,000 299,861
U.S. Treasury Bill, 4.450%,
due 01/18/96 .......................... 150,000 149,648
----------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $449,509) ................... 449,509
----------
TOTAL INVESTMENTS
(Cost $6,149,439*) ................. 99.48% 6,831,641
Other assets, less liabilities ......... 0.52 36,004
------ ----------
TOTAL NET ASSETS .................... 100.00% $6,867,645
====== ==========
</TABLE>
- ------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
6
<PAGE> 28
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
DOMESTIC GROWTH STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-107.69%
AEROSPACE EQUIPMENT-1.39%
Sunstrand Corporation ....................... 9,600 $ 675,600
----------
AUTOMOTIVE & TRUCKING-1.38%
Wabash National Corp. ....................... 30,000 667,500
----------
AUTOMOTIVE PARTS & ACCESSORIES-4.39%
Gentex Corporation+ ......................... 45,000 990,000
Hi-Lo Automotive, Inc.+ ..................... 50,000 256,250
Stewart & Stevenson Services,
Inc ....................................... 35,000 883,750
----------
2,130,000
----------
BANKING-3.22%
Meridian Bancorp, Inc. ...................... 19,300 897,450
New York Bancorp ............................ 29,600 666,000
----------
1,563,450
----------
CHEMICALS-2.33%
Cambrex Corporation ......................... 10,000 413,750
Furon Corp. ................................. 30,000 600,000
Specialty Chemical
Resources,Inc.+ ........................... 57,200 114,400
----------
1,128,150
----------
COMMERCIAL SERVICES-3.79%
Kelly Services, Inc., Class A ............... 40,000 1,110,000
Personnel Group of America,
Inc.+ ..................................... 50,000 731,250
----------
1,841,250
----------
COMPUTER & OFFICE EQUIPMENT-5.75%
Amtech Corporation .......................... 100,000 512,500
Data General Corporation+ ................... 90,000 1,237,500
Stratus Computers, Inc.+ .................... 30,000 1,038,750
----------
2,788,750
----------
COMPUTER SOFTWARE & SERVICES-7.21%
Banctec, Inc.+ .............................. 50,000 925,000
Banyan Systems, Inc.+ ....................... 60,000 615,000
Dataflex Corporation+ ....................... 58,000 195,750
Microage, Inc.+ ............................. 100,000 812,500
TGV Software, Inc.+ ......................... 100,000 950,000
----------
3,498,250
----------
COMPUTERS-4.20%
EMC Corporation/Mass+ ....................... 70,000 1,076,250
Silicon Graphics, Inc.+ ..................... 35,000 962,500
----------
2,038,750
----------
ELECTRICAL EQUIPMENT-2.21%
Westinghouse Electric
Company ................................... 65,000 1,072,500
----------
ELECTRONICS-3.99%
Griffon Corporation+ ........................ 100,000 900,000
Holophane Corp.+ ............................ 22,500 489,375
Whittaker Corporation+ ...................... 25,000 543,750
----------
1,933,125
----------
FINANCIAL SERVICES-6.83%
Aames Financial Corp. ....................... 25,000 696,875
DVI, Inc.+ .................................. 70,000 980,000
Great Western Financial ..................... 20,000 510,000
PNC Banc Corp. .............................. 35,000 1,128,750
----------
3,315,625
----------
FURNISHINGS & APPLIANCES-0.81%
Shelby Williams Industries, Inc. ............ 33,400 392,450
----------
HEALTH CARE-7.93%
Coastal Physician Group, Inc.+ .............. 60,000 810,000
Integrated Health Services, Inc. ............ 40,000 1,000,000
Lincare Holdings, Inc.+ ..................... 40,000 1,000,000
Tenet Healthcare Corp.+ ..................... 50,000 1,037,500
----------
3,847,500
----------
INSURANCE-9.75%
American Bankers, Inc. ...................... 25,000 975,000
Citizens Corporation ........................ 50,000 931,250
TIG Holdings, Inc. .......................... 32,000 912,000
UNUM Corporation ............................ 15,000 825,000
Western National Corp. ...................... 67,500 1,088,438
----------
4,731,688
----------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
7
<PAGE> 29
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
DOMESTIC GROWTH STOCK PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
COMMON STOCK-CONTINUED
<S> <C> <C>
LEISURE & ENTERTAINMENT-3.38%
Arctco, Inc. ........................... 80,000 $ 1,040,000
Speedway Motorsports, Inc.+ ............ 20,000 600,000
------------
1,640,000
------------
MACHINERY-4.39%
Lamson & Sessions, Inc.+ ............... 88,200 683,550
N.N. Ball & Roller, Inc. ............... 82,500 1,443,750
------------
2,127,300
------------
MANUFACTURING-2.55%
Paragon Trade Brands, Inc.+ ............ 47,800 1,117,325
Toy Biz, Inc.+ ......................... 5,500 119,625
------------
1,236,950
------------
MEDICAL-2.33%
Apria Healthcare Group, Inc.+ .......... 40,000 1,130,000
------------
MEDICAL SUPPLIES-5.52%
Allied Healthcare Products, Inc. ....... 63,400 1,014,400
Healthdyne Technologies, Inc.+ ......... 91,766 1,055,309
Sun Healthcare Group, Inc.+ ............ 45,000 607,500
------------
2,677,209
------------
MINING & METALS-3.76%
A.M. Castle & Co. ...................... 38,550 1,084,219
Roanoke Electric Steel Corp. ........... 44,550 740,644
------------
1,824,863
------------
OIL - DOMESTIC-1.83%
Seagull Energy Corp.+ .................. 40,000 890,000
------------
OIL - WELL EQUIPMENT & SERVICE-1.91%
Weatherford Enterra, Inc. .............. 32,110 927,176
------------
PHARMACEUTICALS-1.81%
Bergen Brunswig Corp.,
Class A .............................. 35,247 876,769
------------
REAL ESTATE-6.66%
Centerpoint Properties Corp. ........... 40,000 925,000
Factory Stores of America .............. 45,000 590,625
Gables Residential ..................... 30,000 686,250
HGI Realty, Inc. ....................... 45,000 1,029,375
------------
3,231,250
------------
RETAIL STORES-2.42%
Catherines Stores Company+ ............. 50,000 412,500
Consolidated Stores Corp.+ ............. 35,000 761,250
------------
1,173,750
------------
SHIPPING-4.09%
Airborne Freight Corp. ................. 40,000 1,065,000
American President
Companies ............................ 40,000 920,000
------------
1,985,000
------------
TELECOMMUNICATIONS-1.32%
American Paging, Inc.+ ................. 100,700 641,962
------------
TEXTILE & APPAREL-0.54%
Lacrosse Footwear, Inc. ................ 30,000 262,500
------------
TOTAL COMMON STOCK
(Cost $44,435,445) ................. 52,249,317
------------
TOTAL INVESTMENTS
(Cost $44,435,445*) ................ 107.69% 52,249,317
Other assets, less liabilities ......... (7.69) (3,731,431)
------ ------------
TOTAL NET ASSETS .................... 100.00% $ 48,517,886
====== ============
</TABLE>
- ------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
8
<PAGE> 30
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BOND PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
COMPANY VALUE (NOTE B)
- ------- ----- --------
<S> <C> <C>
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS-104.56%
Federal Home Loan Mortgage
Corporation, #C80090,
6.000%, due 01/01/24 .............. $ 579,050 $ 562,402
Federal National Mortgage
Association, 9.550%,
due 09/10/97 ...................... 55,000 58,778
Federal National Mortgage
Association, CMO #8829B,
9.500%, due 12/25/18 .............. 86,910 92,371
Federal National Mortgage
Association, Pool #248672,
6.000%, due 12/01/23 .............. 178,725 172,805
Federal National Mortgage
Association, Pool #261605,
6.000%, due 01/01/24 .............. 782,523 756,602
Federal National Mortgage
Association, Pool #267376,
6.000%, due 01/01/24 .............. 186,284 180,114
Government National Mortgage
Association, Pool #190666,
9.000%, due 12/15/16 .............. 95,664 101,315
Government National Mortgage
Association, Pool #385809,
8.500%, due 07/15/24 .............. 985,641 1,034,307
Government National Mortgage
Association, Pool #402760,
8.000%, due 08/15/25 .............. 999,281 1,040,501
U.S. Treasury Note, 7.750%,
due 11/30/99 ...................... 1,530,000 1,657,657
U.S. Treasury Note, 8.000%,
due 05/15/01 ...................... 200,000 223,937
U.S. Treasury Note, 6.250%,
due 02/15/03 ...................... 1,790,000 1,868,313
U.S. Treasury Note, 10.375%,
due 11/15/12 ...................... 1,375,000 1,901,797
-----------
TOTAL U.S. GOVERNMENT
AND AGENCY
OBLIGATIONS
(Cost $9,250,783) ............... 9,650,899
-----------
CORPORATE BONDS-0.60%
Corning Glass, 8.250%,
due 03/15/02 ...................... 50,000 55,518
-----------
TOTAL CORPORATE
BONDS (Cost $48,535) ............ 55,518
-----------
TOTAL INVESTMENTS
(Cost $9,299,318*) .............. 105.16% 9,706,417
Other assets, less liabilities ...... (5.16) (476,327)
------ -----------
TOTAL NET ASSETS ................. 100.00% $ 9,230,090
====== ===========
</TABLE>
- ----------------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
9
<PAGE> 31
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GROWTH AND INCOME PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-100.40%
AEROSPACE & DEFENSE-2.84%
General Motors Corporation,
Class H .................................... 7,600 $ 373,350
----------
APPLIANCES-2.47%
Whirlpool Corp. .............................. 6,100 324,825
----------
AUTOMOBILES-3.00%
Chrysler Corporation ......................... 7,100 393,163
----------
AUTOMOTIVE-PARTS & ACCESSORIES-6.03%
Borg-Warner Automotive, Inc. ................. 12,600 403,200
Cummins Engine, Inc. ......................... 10,500 388,500
----------
791,700
----------
BANKS-5.77%
KeyCorp ...................................... 11,033 399,946
Mellon Bank Corp. ............................ 6,650 357,438
----------
757,384
----------
BUILDING & CONSTRUCTION-3.85%
Redman Industries, Inc.+ ..................... 15,000 506,250
----------
BUILDING MATERIALS-2.70%
Owens-Corning Fiberglas
Corp.+ ..................................... 7,900 354,512
----------
COMPUTERS-2.78%
Compaq Computer Corp.+ ....................... 7,600 364,800
----------
CONSUMER HEALTH-1.85%
American Home Products, Inc. ................. 2,500 242,500
----------
FINANCIAL SERVICES-7.80%
First Chicago NBD
Corporation ................................ 10,259 405,231
Merrill Lynch & Company, Inc. ................ 4,800 244,800
PaineWebber Group, Inc. ...................... 18,700 374,000
----------
1,024,031
----------
FOOD PROCESSING-6.07%
Archer-Daniels-Midland Companies, Inc ........ 22,135 398,430
Philip Morris Companies, Inc. ................ 4,400 398,200
----------
796,630
----------
FOREST PRODUCTS & PAPER-2.98%
Asia Pulp & Paper, Co., Ltd., ADR+ ........... 48,100 390,812
----------
HOLDING COMPANIES-2.96%
Hanson PLC, ADR .............................. 25,500 388,875
----------
INSURANCE-9.15%
Old Republic International Corp. ............. 10,800 383,400
Progressive Corp. ............................ 7,700 376,337
W.R. Berkley Corp. ........................... 8,200 440,750
----------
1,200,487
----------
MINING & METALS-5.07%
Cyprus Amax Minerals ......................... 13,500 352,687
Inco, Ltd., ADR .............................. 9,400 312,550
----------
665,237
----------
OIL-DOMESTIC-6.06%
Atlantic Richfield Co. ....................... 3,400 376,550
YPF Sociedad Anonima, S.A., ADR .............. 19,400 419,525
----------
796,075
----------
OIL-INTERNATIONAL-2.93%
Exxon Corporation ............................ 4,800 384,600
----------
OIL REFINING-2.63%
Ultramar Corp. ............................... 13,400 345,050
----------
RETAIL-SPECIALTY-4.93%
Circuit City Stores, Inc. .................... 14,300 395,038
Sotheby's Holdings, Inc. ..................... 17,700 252,225
----------
647,263
----------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
10
<PAGE> 32
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
GROWTH AND INCOME PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
RETAIL STORES-3.06%
May Department Stores
Company ............................ 9,500 $ 401,375
------------
TECHNOLOGY-SEMICONDUCTORS-3.00%
Avnet, Inc. .......................... 8,800 393,800
------------
TEXTILES-2.75%
Burlington Industries, Inc.+ ......... 27,500 360,937
------------
TRANSPORTATION-5.02%
Burlington Northern, Inc. ............ 3,700 288,600
Canadian Pacific, Ltd. ............... 20,400 369,750
------------
658,350
------------
TRANSPORTATION-MISC.-4.70%
Federal Express+ ..................... 5,600 413,700
Offshore Logistics, Inc.+ ............ 16,100 203,263
------------
616,963
------------
TOTAL COMMON STOCK
(Cost $11,317,794) ............... 13,178,969
------------
TOTAL INVESTMENTS ................. 100.40% 13,178,969
(Cost $11,317,794*)
Other assets, less liabilities ....... (0.40) (52,946)
------ ------------
TOTAL NET ASSETS .................. 100.00% $ 13,126,023
====== ============
</TABLE>
- ------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
11
<PAGE> 33
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
CAPITAL GROWTH PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-81.08%
ADVERTISING-1.69%
CKS Group, Inc.+ ............................ 10,000 $ 390,000
Central European Media Center+ .............. 9,750 199,875
Katz Media Group, Inc.+ ..................... 14,325 252,478
----------
842,353
----------
BANKING-1.93%
First Bank Systems .......................... 8,225 408,166
First Empire State Corporation .............. 1,175 256,150
First Interstate Bancorp .................... 2,200 300,300
----------
964,616
----------
BUILDING MATERIALS-0.53%
Assa Abloy AB, Class B+ ..................... 28,596 267,524
----------
CHEMICALS-1.55%
Cytec Industries, Inc.+ ..................... 1,850 115,394
The Carbide/Graphite Group+ ................. 45,800 658,375
----------
773,769
----------
COMMERCIAL SERVICES-4.75%
Amre, Inc. .................................. 105,550 1,543,669
Corestaff, Inc.+ ............................ 10,250 374,125
Medaphis Corporation+ ....................... 12,125 448,625
----------
2,366,419
----------
COMMUNICATION SYSTEMS-2.51%
Millicom International Cellular, S.A.,
ADR+ ...................................... 24,550 748,775
Paging Network, Inc.+ ....................... 20,600 502,125
----------
1,250,900
----------
COMPUTERS-0.99%
Network Appliance, Inc.+ .................... 6,575 263,822
Technology Solutions Co.+ ................... 11,750 229,125
----------
492,947
----------
CONSUMER PRODUCTS-2.85%
Amway Asia Pacific, Ltd ..................... 28,325 1,009,078
Fila Holdings, SPA, ADR ..................... 7,825 356,037
Industrie Natuzzi, SPA, ADR ................. 1,175 53,315
----------
1,418,430
----------
COSMETICS-2.83%
Estee Lauder Companies, Class A+ ............ 40,475 1,411,566
----------
ELECTRICAL EQUIPMENT-1.10%
Ucar International, Inc.+ ................... 16,175 545,906
----------
ELECTRONICS-6.21%
Nokia Corp., ADR ............................ 1,800 69,975
Pittway Corp. ............................... 44,675 3,026,731
----------
3,096,706
----------
FINANCIAL SERVICES-7.75%
APS Holdings, Inc.+ ......................... 12,975 291,937
Chase Manhattan Corp. ....................... 13,400 812,375
CitiCorp .................................... 7,800 524,550
Investors Financial Services+ ............... 49,250 1,021,937
Lloyds TSB Group, PLC ....................... 99,780 512,781
North American Mortgage ..................... 32,875 698,594
----------
3,862,174
----------
FOOD & HOUSEHOLD PRODUCTS-1.62%
JP Foodservice, Inc.+ ....................... 41,500 809,250
----------
FOOD PROCESSING-3.97%
Nabisco Holdings Corp. ...................... 48,075 1,568,447
Nutricia Verenigde Bedrijven ................ 5,080 411,346
----------
1,979,793
----------
LODGING & RESTAURANT-4.11%
HFS, Inc.+ .................................. 22,800 1,863,900
Renaissance Hotel Group, NV+ ................ 7,175 182,963
----------
2,046,863
----------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
12
<PAGE> 34
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
CAPITAL GROWTH PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-(CONTINUED)
MANUFACTURING-3.46%
Mattel, Inc. ........................... 41,312 $ 1,270,344
Waters Corp.+ .......................... 24,875 453,969
-----------
1,724,313
-----------
MEDIA-1.37%
Heritage Media Corp., Class A+ ......... 26,725 684,828
-----------
MEDICAL-2.19%
HealthSouth Corp.+ ..................... 13,900 404,838
MedPartners/Mullikin, Inc.+ ............ 20,850 688,050
-----------
1,092,888
-----------
MEDICAL SUPPLIES-1.50%
ICU Medical, Inc.+ ..................... 41,575 706,775
Scandanavian Mobility+ ................. 1,671 40,103
-----------
746,878
-----------
OFFICE & BUSINESS EQUIPMENT-1.11%
Viking Office Products, Inc.+ .......... 11,875 552,188
-----------
PHARMACEUTICALS-7.25%
Pfizer, Inc. ........................... 16,550 1,042,650
R.P. Scherer Corp.+ .................... 15,325 752,841
Roche Holding, AG Genusshein ........... 91 721,657
Smithkline Beecham, ADR ................ 19,800 1,098,900
-----------
3,616,048
-----------
PUBLISHING-0.60%
Wolters Kluwer, CVA, Ord ............... 3,164 299,611
-----------
RESTAURANTS & FOOD SERVICE-3.20%
Quality Dining, Inc.+ .................. 34,825 844,506
Rainforest Cafe, Inc.+ ................. 25,000 753,125
-----------
1,597,631
-----------
RETAIL-4.13%
General Nutrition Companies+ ........... 40,150 923,450
Global Directmail Corp.+ ............... 23,450 644,875
Gymboree Corporation+ .................. 23,625 487,266
-----------
2,055,591
-----------
SOFTWARE PRODUCTS & SERVICES-11.88%
Cisco Systems, Inc.+ ................... 1,450 108,206
First Data Corp. ....................... 10,075 673,766
General Motors Corp., Class E .......... 30,750 1,599,000
Getronics, NV .......................... 21,081 986,337
Keane, Inc.+ ........................... 11,175 247,247
MDL Information Systems, Inc.+ ......... 54,725 1,258,675
Metatools, Inc.+ ....................... 12,500 325,000
Objective Systems Integrator+ .......... 3,775 206,681
Pixar, Inc.+ ........................... 17,975 519,028
-----------
5,923,940
-----------
TOTAL COMMON STOCK
(Cost $31,535,862) ................. 40,423,132
-----------
TOTAL INVESTMENTS
(Cost $31,535,862*) ................ 81.08% 40,423,132
Other assets, less liabilities ......... 18.92 9,429,897
------ -----------
TOTAL NET ASSETS .................... 100.00% $49,853,029
====== ===========
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
13
<PAGE> 35
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-58.01%
AEROSPACE EQUIPMENT-1.19%
Boeing Co. ................................ 2,200 $172,425
--------
BIOPHARMACEUTICALS-0.86%
Genzyme Corporation-General
Division+ ............................... 2,000 124,750
--------
BROADCASTING-1.91%
Capital Cities ABC, Inc. .................. 1,100 135,713
Viacom, Inc., Class B+ .................... 3,000 142,125
--------
277,838
--------
COMMERCIAL SERVICES-1.06%
CUC International, Inc.+ .................. 4,500 153,563
--------
COMMUNICATION SYSTEMS-5.79%
3Com Corporation+ ......................... 2,800 130,550
AT&T Corp. ................................ 2,400 155,400
Bell Atlantic Corporation ................. 1,700 113,687
GTE Corp. ................................. 3,500 154,000
MCI Communications Corp. .................. 4,500 117,562
United Technologies
Corporation ............................. 1,800 170,775
--------
841,974
--------
COSMETICS-1.08%
Estee Lauder Companies, Class A+ .......... 4,500 156,938
--------
COMPUTERS-0.68%
Bay Networks, Inc.+ ....................... 2,400 98,700
--------
ELECTRONICS-3.75%
Altera Corporation+ ....................... 1,600 79,600
Amphenol Corporation, Class A+ ............ 5,000 121,250
General Electric Company .................. 2,500 180,000
LSI Logic Corp.+ .......................... 2,400 78,600
Motorola, Inc. ............................ 1,500 85,500
--------
544,950
--------
ENTERTAINMENT & LEISURE-0.81%
Disney, Walt Co. .......................... 2,000 118,000
--------
Financial Services-1.84%
American Express Company .................. 2,000 82,750
First American Corporation-Tenn ........... 1,800 85,275
Great Western Financial Corp. ............. 3,900 99,450
--------
267,475
--------
FOOD PROCESSING-1.46%
Nabisco Holdings Corp. .................... 6,500 212,062
--------
FOREST PRODUCTS & PAPER-1.42%
Kimberly Clark Corp. ...................... 2,500 206,875
--------
HEALTH & PERSONAL CARE-0.94%
Schering Plough Corporation ............... 2,500 136,875
--------
INSURANCE-3.82%
Ace, Ltd. ................................. 3,800 151,050
American International Group, Inc ......... 1,800 166,500
Prudential Reinsurance
Holdings ................................ 3,450 80,643
Travelers Group, Inc. ..................... 2,500 157,187
--------
555,380
--------
MACHINES-1.72%
Case Corporation .......................... 2,500 114,375
Thermo Electron Corp.+ .................... 2,608 135,616
--------
249,991
--------
MANUFACTURING-1.08%
Tyco International, Ltd. .................. 4,400 156,750
--------
MEDICAL-BIOTECH-2.66%
Guidant Corp. ............................. 4,500 190,125
Medtronic, Inc. ........................... 3,500 195,562
--------
385,687
--------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
14
<PAGE> 36
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
MEDICAL - HOSPITAL MGT. & SERVICES-3.79%
Manor Care, Inc. ............................ 4,000 $ 140,000
Phycor, Inc.+ ............................... 2,000 101,125
United Healthcare Corp. ..................... 2,500 163,750
Vencor, Inc.+ ............................... 4,500 146,250
---------
551,125
---------
MEDICAL SUPPLIES-1.15%
Boston Scientific Corp.+ .................... 3,400 166,600
---------
MERCHANDISING-1.15%
Home Depot, Inc. ............................ 3,500 167,563
---------
OFFICE & BUSINESS EQUIPMENT-1.87%
Hewlett Packard Co. ......................... 1,600 134,000
Xerox Corporation ........................... 1,000 137,000
---------
271,000
---------
OIL & GAS EXPLORATION-0.43%
Sonat Offshore Drilling ..................... 1,400 62,650
---------
OIL - INTERNATIONAL-1.35%
Texaco, Inc. ................................ 2,500 196,250
---------
OIL SERVICE EQUIPMENT-1.95%
Halliburton Co. ............................. 1,600 81,000
Tidewater, Inc. ............................. 5,000 157,500
Western Atlas, Inc.+ ........................ 900 45,450
---------
283,950
---------
PHARMACEUTICALS-1.86%
Amgen, Inc.+ ................................ 2,400 142,500
Watson Pharmaceuticals+ ..................... 2,600 127,400
---------
269,900
---------
RESTAURANTS-2.91%
Boston Chicken, Inc.+ ....................... 4,500 144,563
Starbucks Corp.+ ............................ 6,000 126,000
Wendy's International, Inc. ................. 7,200 153,000
---------
423,563
---------
RETAIL - SPECIAL LINE-1.08%
Corporate Express, Inc.+ .................... 5,200 156,650
---------
SOFTWARE PRODUCTS & SERVICES-1.14%
Oracle Corp.+ ............................... 2,200 93,225
Sybase, Inc.+ ............................... 2,000 72,000
---------
165,225
---------
TELECOMMUNICATIONS-5.20%
Ascend Communications, Inc. ................. 1,600 129,800
DSC Communications Corp.+ ................... 2,700 99,563
Equifax, Inc. ............................... 9,000 192,375
Newbridge Networks Corp.+ ................... 3,000 124,125
Qualcomm, Inc.+ ............................. 1,600 68,800
Worldcomm, Inc.+ ............................ 4,000 141,000
---------
755,663
---------
TEXTILES & APPAREL-1.03%
Nine West Group, Inc.+ ...................... 4,000 150,000
---------
TRANSPORTATION-1.03%
Fritz Companies, Inc.+ ...................... 3,600 149,400
---------
TOTAL COMMON STOCK
(cost $7,384,294) ....................... 8,429,772
---------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
15
<PAGE> 37
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
BALANCED PORTFOLIO-(Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
COMPANY VALUE (NOTE B)
- ------- --------- --------
<S> <C> <C>
BONDS-38.16%
MUNICIPAL BONDS-2.38%
Florida State Board of Education, 5.250%,
due 06/01/23 .......................... $ 35,000 $ 34,548
Intermountain Power Agency, Utah
Power Supply, 5,000%,
due 07/01/23 .......................... 35,000 31,979
Kergen County, CA Pension Obligation,
7.260%, due 08/15/14 .................. 30,000 30,992
Long Beach, California Pension
Obligation, 6.870%,
due 09/01/06 .......................... 20,000 20,561
Miami Beach, Florida Spl. Obligation,
8.600%, due 09/01/21 .................. 70,000 80,031
New York State Power Authority
Revenue & General Purpose,
5.250%, due 01/01/18 .................. 15,000 14,712
Northern California Power Agency,
Public Power Revenue, 5.500%,
due 07/01/24 .......................... 35,000 35,077
San Bernardino County, California Fing ..
Auth. Pension Obligation Rev.,
6.940%, due 08/01/09 .................. 25,000 25,708
San Bernardino County, California Fing ..
Auth Pension Obligation Rev.,
6.870%, due 08/01/08 .................. 10,000 10,297
South Carolina State Public
Service Authority, 5.125%,
due 01/01/21 .......................... 15,000 14,211
South Carolina State Public
Service Authority, 5.000%,
due 01/01/25 .......................... 30,000 28,126
Ventura County, California Pension
Obligation, 6.580%,
due 11/01/06 .......................... 20,000 20,074
------------
346,316
------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS-35.78%
Government National Mortgage
Association, 6.500%,
due 12/15/23 .......................... 196,469 195,118
Government National Mortgage
Association, Pool #780035,
6.500%, due 07/15/24 .................. 344,904 342,545
U.S. Treasury Bond, 7.500%,
due 11/15/16 .......................... 550,000 645,390
U.S. Treasury Bond, 6.250%,
due 08/15/23 .......................... 375,000 385,547
U.S. Treasury Note, 4.750%,
due 02/15/97 .......................... 750,000 746,483
U.S. Treasury Note, 6.000%,
due 10/15/99 .......................... 1,500,000 1,533,750
U.S. Treasury Note, 5.500%,
due 04/15/00 .......................... 400,000 403,125
U.S. Treasury Note, 5.750%,
due 10/31/00 .......................... 500,000 507,812
U.S. Treasury Note, 7.250%,
due 05/15/04 .......................... 395,000 439,560
------------
5,199,330
------------
TOTAL BONDS
(Cost $5,339,143) ................... 5,545,646
------------
SHORT-TERM OBLIGATIONS-14.77%
Exxon Imperial U.S., 5.750%,
due 01/08/96 .......................... 455,000 454,346
First Deposit Funding Trust,
5.700%, due 02/26/96 .................. 445,000 440,914
GTE North, 5.710%,
due 01/08/96 .......................... 490,000 489,301
Heinz (H J), 5.720%,
due 02/02/96 .......................... 240,000 238,703
Merrill Lynch, 5.800%,
due 01/05/96 .......................... 130,000 129,874
TDK USA, 5.750%,
due 01/22/96 .......................... 175,000 174,357
Wisconsin Electric Power, 5.800%,
due 01/17/96 .......................... 220,000 219,362
------------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $2,146,857) ................... 2,146,857
------------
TOTAL INVESTMENTS
(Cost $14,870,294*) ................. 110.94% 16,122,275
Other assets, less liabilities .......... (10.94) (1,590,007)
------ ------------
TOTAL NET ASSETS ..................... 100.00% $ 14,532,268
====== ============
</TABLE>
- ------------
* Aggregate cost for Federal income tax purposes
+ Non-income producing security.
See notes to financial statements.
16
<PAGE> 38
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-89.62%
ADVERTISING-0.05%
Citation Corporation+ ........................ 500 $ 6,000
--------
BREWERY-0.02%
Redhook Ale Brewery, Inc.+ ................... 100 2,600
--------
BROADCASTING - RADIO & TV-0.65%
Infinity Broadcasting
Corporation+ ............................... 2,000 74,500
--------
CHEMICALS-0.01%
The Carbide/Graphite
Group, Inc.+ ............................... 100 1,437
--------
COMMERCIAL SERVICES-6.11%
Apac Teleservices, Inc.+ ..................... 100 3,337
Accustaff, Inc.+ ............................. 200 8,800
Affiliated Computer Services,
Inc.+ ...................................... 200 7,500
CUC International, Inc.+ ..................... 6,400 218,400
Central Parking Corporation .................. 100 2,875
Corestaff, Inc.+ ............................. 100 3,650
Franklin Quest Company, Inc.+ ................ 5,400 105,300
Healthplan Services Corp.+ ................... 1,000 25,000
Interim Services, Inc.+ ...................... 1,000 34,750
Learning Tree International,
Inc.+ ...................................... 6,900 107,812
Meta Group, Inc.+ ............................ 100 3,063
Paychex, Inc. ................................ 700 34,913
Personnel Group of America,
Inc.+ ...................................... 4,900 71,663
Romac International, Inc.+ ................... 100 2,350
SOS Staffing Services+ ....................... 100 937
Service Corporation
International .............................. 1,500 66,000
Sitel Corporation+ ........................... 100 3,063
--------
699,413
--------
COMPUTER & OFFICE EQUIPMENT-5.27%
Bay Networks, Inc.+ .......................... 3,600 148,050
Cabletron Systems, Inc.+ ..................... 3,700 299,700
IDX Systems Corp.+ ........................... 2,300 79,925
Networks Applicance, Inc.+ ................... 100 4,012
PC Docs Group International,
Inc.+ ...................................... 4,000 71,500
--------
603,187
--------
COMPUTER SOFTWARE - MAINFRAME-21.30%
BDM International, Inc.+ ..................... 100 2,900
BMC Software, Inc.+ .......................... 7,000 299,250
Baan Company, NV+ ............................ 100 4,525
Black Box Corporation+ ....................... 700 11,462
Cadence Design Systems, Inc.+ ................ 8,100 340,200
Checkfree Corporation+ ....................... 100 2,150
Computer Associates International
Inc ........................................ 4,100 233,187
Computer Management Sciences,
Inc.,+ ..................................... 100 1,750
Computer Sciences Co.+ ....................... 1,300 91,325
Compuware Corp.+ ............................. 4,000 74,000
Datalogix International, Inc.+ ............... 100 1,262
DST Systems, Inc.+ ........................... 4,000 114,000
First Data Corporation ....................... 1,200 80,250
Harbinger Corporation+ ....................... 100 2,300
HNC Software, Inc.+ .......................... 100 4,775
Informix Corporation+ ........................ 3,000 90,000
Legato Systems, Inc.+ ........................ 100 3,100
Marcam Corp.+ ................................ 1,000 15,250
Objective Systems Integrator,
Inc.+ ...................................... 100 5,475
Oracle Systems Corp.+ ........................ 10,500 444,938
Reynolds & Reynolds, Class A ................. 900 34,988
SPS Transaction Services
Corporation+ ............................... 3,300 97,763
Summit Medical Systems+ ...................... 100 2,150
Sybase, Inc.+ ................................ 6,000 216,000
Symantec Corporation+ ........................ 800 18,600
System Software
Associates, Inc. ........................... 8,400 182,700
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
17
<PAGE> 39
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
COMPUTER SOFTWARE - MAINFRAME-(CONTINUED)
The BISYS Group, Inc.+ ........................ 1,500 $ 46,125
Transaction Systems Architects, Inc.+ ......... 200 6,750
Vantive Corporation+ .......................... 100 2,250
Verity, Inc.+ ................................. 100 4,425
VideoServer, Inc.+ ............................ 100 3,150
----------
2,437,000
----------
COMPUTERS SOFTWARE - P.C.-5.05%
Adobe Systems, Inc. ........................... 2,600 161,200
Astea International, Inc.+ .................... 100 2,287
Autodesk, Inc. ................................ 8,800 301,400
CBT Group PLC, ADR+ ........................... 200 10,600
Citrix Systems, Inc.+ ......................... 100 3,250
Dataworks Corp.+ .............................. 100 1,263
Discreet Logic, Inc.+ ......................... 200 5,000
Electronic Arts, Inc.+ ........................ 400 10,450
Hummingbird Communications, Ltd.+ ............. 800 32,400
Premenos Technology Corporation+ .............. 100 2,638
Softquad International, Inc.+ ................. 700 3,721
Spectrum Holobyte, Inc.+ ...................... 600 3,900
Technology Solutions Company+ ................. 1,900 37,050
Visio Corporation+ ............................ 100 2,825
----------
577,984
----------
ELECTRONICS-4.10%
ADT Limited+ .................................. 7,000 105,000
Ceridian Corp.+ ............................... 4,000 165,000
Cyberoptics Corporation+ ...................... 100 3,975
Euphonix, Inc.+ ............................... 300 2,550
LSI Logic Corporation+ ........................ 4,200 137,550
Linear Technology Corp. ....................... 1,400 54,950
----------
469,025
----------
ELECTRONICS - SEMICONDUCTOR-0.21%
Xilinx, Inc.+ ................................. 800 24,400
----------
ENTERTAINMENT & LEISURE-2.76%
Aztar Corporation+ ............................ 300 2,400
Casino America, Inc.+ ......................... 600 3,675
Coleman Co., Inc.+ ............................ 500 17,563
Grand Casinos, Inc.+ .......................... 5,250 122,062
Harrah's Entertainment, Inc.+ ................. 7,000 169,750
----------
315,450
----------
ENVIRONMENTAL CONTROL-0.50%
Sanfill, Inc.+ ................................ 1,700 56,737
----------
FINANCIAL SERVICES-0.05%
Donaldson, Lufkin & Jenrette, Inc ............. 100 3,125
Union Acceptance Corp., Class A+ .............. 200 2,800
----------
5,925
----------
FOOD & HOUSEHOLD PRODUCTS-0.10%
Blyth Industries, Inc.+ ....................... 400 11,800
----------
HOME FURNISHINGS-0.47%
Department 56, Inc.+ .......................... 1,400 53,725
----------
INDUSTRIAL MACHINES & ENGINES-0.02%
Hardinge, Inc. ................................ 100 2,600
----------
INSURANCE-10.87%
Allmerica Financial Corp. ..................... 100 2,700
Amerin Corp.+ ................................. 1,500 40,125
Compdent Corporation+ ......................... 400 16,600
Foundation Health Corp.+ ...................... 2,800 120,400
Healthsource, Inc.+ ........................... 4,000 144,000
Lasalle Re Holdings, Ltd.+ .................... 200 4,575
Mid Atlantic Medical Services, Inc.+ .......... 8,900 215,825
Oxford Health Plans, Inc.+ .................... 800 59,100
Pacificare Health Systems, Class A+ ........... 1,000 87,000
Prudential Reinsurance Holdings, Inc .......... 400 9,350
Renaissance Holdings, Ltd.+ ................... 100 3,038
United Dental Care, Inc.+ ..................... 100 4,125
United Healthcare Corp.+ ...................... 8,200 537,100
----------
1,243,938
----------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
18
<PAGE> 40
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
LODGING-6.17%
Bristol Hotel Co.+ .......................... 100 $ 2,437
Extended Stay America, Inc.+ ................ 100 2,750
HFS, Inc.+ .................................. 7,200 588,600
Promus Hotel Corporation+ ................... 2,400 53,400
Renaissance Hotel Group NV+ ................. 2,200 56,100
Studio Plus Hotels, Inc.+ ................... 100 2,575
--------
705,862
--------
MACHINES - DIVERSIFIED-0.01%
ADE Corporation+ ............................ 100 1,450
--------
MANUFACTURING-0.55%
Chicago Miniature Lamp, Inc.+ ............... 100 2,300
Safety Components
International, Inc.+ ...................... 200 3,150
Tyco International, Ltd.+ ................... 1,600 57,000
--------
62,450
--------
MEDICAL - BIOTECHNOLOGY-0.68%
Guidant Corp. ............................... 1,700 71,825
Myriad Genetics, Inc.+ ...................... 100 3,263
Norland Medical Systems, Inc.+ .............. 100 2,325
--------
77,413
--------
MEDICAL - HOSPITALS-5.98%
AHI Healthcare Systems, Inc.+ ............... 100 575
American Oncology
Resources, Inc.+ .......................... 100 4,862
Community Care of America,
Inc.+ ..................................... 200 2,100
Community Health Systems,
Inc.+ ..................................... 3,300 117,563
Enterprise Systems, Inc.+ ................... 100 3,050
Health Management Associates,
Inc., Class A+ ............................ 1,900 49,638
HealthSouth Corporation+ .................... 2,000 58,250
Horizon Healthcare Corp.+ ................... 1,900 47,975
Lincare Holdings, Inc.+ ..................... 2,000 50,000
Living Centers of America, Inc.+ ............ 500 17,500
Occusystems, Inc.+ .......................... 100 2,000
Owen Healthcare, Inc.+ ...................... 400 11,050
Pacificare Health Systems,
Inc., Class B+ ........................... 2,100 182,700
Pediatric Services of
America, Inc.+ ............................ 400 6,300
Pediatrix Medical Group, Inc.+ .............. 100 2,750
Physicians Resource
Group, Inc.+ .............................. 200 3,975
Renal Treatment Centers, Inc.+ .............. 1,200 52,800
Sterling Healthcare Group+ .................. 300 3,187
Surgical Care Affiliates, Inc. .............. 1,900 64,600
Total Renal Care Holdings+ .................. 100 2,950
--------
683,825
--------
MEDICAL SUPPLIES-1.42%
De Rigo, SPA, ADR+ .......................... 300 6,825
ICU Medical, Inc.+ .......................... 100 1,700
Medisense, Inc.+ ............................ 1,000 31,625
Neuromedical Systems, Inc.+ ................. 2,000 40,250
Orthofix International, N.V.+ ............... 1,700 12,538
Sola International, Inc.+ ................... 200 5,050
St. Jude Medical, Inc. ...................... 1,500 64,500
--------
162,488
--------
OFFICE & BUSINESS EQUIPMENT-0.13%
BT Office Products International,
Inc ....................................... 900 14,400
--------
OIL - INTERNATIONAL-0.55%
Union Pacific Resource Group ................ 2,500 63,437
--------
PHARMACEUTICALS-0.63%
Biochem Pharmaceuticals,
Inc.+ ..................................... 1,700 68,213
Parexel International Corp.+ ................ 100 3,325
--------
71,538
--------
PUBLISHING/PRINTING-0.10%
Mail-Well, Inc.+ ............................ 900 11,025
--------
REAL ESTATE-0.32%
NHP, Inc.+ .................................. 2,000 37,000
--------
RESTAURANTS & FOOD SERVICE-2.39%
Applebee's International, Inc. .............. 5,200 118,300
Apple South, Inc. ........................... 100 2,150
Brinker International, Inc.+ ................ 4,400 66,550
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
19
<PAGE> 41
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
RESTAURANTS & FOOD SERVICE-(CONTINUED)
IHOP Corporation+ ............................. 3,100 $ 80,600
Papa John's International, Inc.+ .............. 100 4,119
Sonic Corporation+ ............................ 100 1,900
--------
273,619
--------
RETAIL-6.10%
Boise Cascade Office Products
Corp.+ ...................................... 800 34,200
Consolidated Stores Corp.+ .................... 2,200 47,850
Dollar Tree Stores, Inc.+ ..................... 600 14,850
Duty Free International, Inc. ................. 300 4,800
Eastbay, Inc.+ ................................ 200 3,950
Fila Hildings, SPA, ADR ....................... 2,500 113,750
Global DirectMail Corp.+ ...................... 1,700 46,750
Hollywood Entertainment Corp.+ ................ 2,300 19,262
Micro Warehouse, Inc.+ ........................ 5,400 233,550
Office Depot, Inc.+ ........................... 9,000 177,750
Renter's Choice, Inc.+ ........................ 100 1,375
--------
698,087
--------
RETAIL - SPECIALTY-1.69%
Corporate Express, Inc.+ ...................... 1,600 48,200
General Nutrition Companies,
Inc.+ ....................................... 2,200 50,600
Henry Schein, Inc.+ ........................... 100 2,950
MSC Industrial Direct, Inc.+ .................. 100 2,750
Movie Gallery, Inc.+ .......................... 1,000 30,500
Officemax, Inc.+ .............................. 2,600 58,175
---------
193,175
---------
SEMICONDUCTORS-0.07%
MEMC Electronic Materials, Inc.+ .............. 200 6,525
Ontrak Systems, Inc.+ ......................... 100 1,450
--------
7,975
--------
TELECOMMUNICATION-3.13%
ECI Telecom, Ltd., GDR ........................ 1,500 34,219
Korea Mobile Telecommunication
Corp., GDR+ ................................. 1,300 57,850
MCI Communications Corp. ...................... 1,000 26,125
Midcom Communications, Inc.+ .................. 200 3,650
Mobile Media, Inc.+ ........................... 100 2,225
Tel-Save Holdings, Inc.+ ...................... 2,500 34,687
Telltabs, Inc.+ ............................... 900 33,300
Worldcom, Inc.+ ............................... 4,700 165,675
--------
357,731
--------
TELECOMMUNICATION EQUIPMENT-0.93%
Teletrend, Inc.+ .............................. 300 14,025
U.S. Robotics Corporation+ .................... 1,000 87,750
Westell Technologies Corp.+ ................... 100 2,512
Wireless One, Inc.+ ........................... 100 1,650
--------
105,937
--------
TEXTILES & APPAREL-0.20%
Gucci Group+ .................................. 100 3,887
Nine West Group, Inc.+ ........................ 500 18,750
--------
22,637
--------
TRANSPORTATION-0.43%
American Medical
Response, Inc.+ ............................. 1,500 48,750
--------
TRANSPORTATION - AIR-0.05%
Eagle USA Airfreight+ ......................... 100 2,625
Midwest Express Holdings,
Inc.+ ....................................... 100 2,775
--------
5,400
--------
</TABLE>
- ------------
+ Non-income producing security.
See notes to financial statements.
20
<PAGE> 42
CHUBB AMERICA FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
EMERGING GROWTH PORTFOLIO-(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
UTILITIES - TELECOMMUNICATIONS-0.53%
Frontier Corporation .................... 2,000 $ 60,000
-----------
WHOLESALE-0.02%
U.S. Office Products Company+ ........... 100 2,275
TOTAL COMMON STOCK
(Cost $8,812,816) ................... 10,252,195
SHORT-TERM OBLIGATIONS-8.74%
Federal Home Loan Mortgage Corp.,
5.750%, due 01/02/96 .................. 1,000,000 999,521
-----------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $999,521) ..................... 999,521
-----------
TOTAL INVESTMENTS
(Cost $9,812,337*) .................. 98.36% 11,251,716
Other assets, less liabilities .......... 1.64 187,808
--------- -----------
TOTAL NET ASSETS ..................... 100.00% $11,439,524
========= ===========
</TABLE>
- ------------
* Aggregate cost for Federal income tax purposes
+ Non-income producing security.
See notes to financial statements.
21
<PAGE> 43
CHUBB AMERICA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
WORLD
GROWTH MONEY GOLD
STOCK MARKET STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Investments-at cost-see accompanying portfolios ........ $ 63,052,537 $ 8,571,497 $ 6,149,439
============ =========== ===========
Investments, at market value (Note B and C) ........... $ 76,009,300 $ 8,572,813 $ 6,831,641
Cash .................................................. 796,841 146,559 524,402
Receivable for accrued investment income .............. 300,261 490 5,383
Receivable for portfolio securities sold .............. 1,251,976 355,055
Net receivable for capital shares sold ................ 75,620
Deferred organization costs (Note B)
------------ ----------- -----------
TOTAL ASSETS ....................................... 78,433,998 8,719,862 7,716,481
LIABILITIES
Net payable for capital shares redeemed ............... 24,036
Dividends payable ..................................... 3,151,912 401,686 37,521
Payable for portfolio securities purchased ............ 1,513,473 779,395
Accrued investment advisory fees (Note D) ............. 44,789 3,605 4,137
Accrued expenses ...................................... 31,467 1,895 3,747
------------ ----------- -----------
TOTAL LIABILITIES ................................... 4,741,641 407,186 848,836
NET ASSETS ............................................. $ 73,692,357 $ 8,312,676 $ 6,867,645
============ =========== ===========
NET ASSETS CONSIST OF:
Capital paid in ....................................... $ 60,661,910 $ 8,312,305 $ 6,590,173
Overdistribution of net investment income ............. (454,018) (71,804)
Accumulated net realized gain (loss) on investments ... 556,740 (945) (332,934)
Net unrealized gain on investments .................... 12,956,763 1,316 682,202
Net unrealized gain (loss) on translation of
assets and liabilities in foreign currencies
(Note C) ............................................ (29,038) 8
Capital gain distributions required for
Federal tax purposes over amounts
recognized for financial reporting (Note C) .........
------------ ----------- -----------
NET ASSETS ............................................. $ 73,692,357 $ 8,312,676 $ 6,867,645
============ =========== ===========
Shares of common stock outstanding (no par value,
1,000,000,000 shares authorized) .................... 3,475,276 809,271 413,432
============ =========== ===========
Net asset value, offering and redemption price per share $ 21.20 $ 10.27 $ 16.61
============ =========== ===========
</TABLE>
See notes to financial statements.
22
<PAGE> 44
<TABLE>
<CAPTION>
DOMESTIC GROWTH
GROWTH AND
STOCK BOND INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Investments-at cost-see accompanying portfolios ........ $44,435,445 $ 9,299,318 $11,317,794
=========== =========== ===========
Investments, at market value (Note B and C) ........... $52,249,317 $ 9,706,417 $13,178,969
Cash .................................................. 3,030,666 77,125 1,610,035
Receivable for accrued investment income .............. 86,289 96,988 29,321
Receivable for portfolio securities sold ..............
Net receivable for capital shares sold ................ 115,982 30,931
Deferred organization costs (Note B) .................. 903
----------- ----------- -----------
TOTAL ASSETS ....................................... 55,482,254 9,880,530 14,850,159
LIABILITIES
Net payable for capital shares redeemed ...............
Dividends payable ..................................... 6,058,448 644,900 528,059
Payable for portfolio securities purchased ............ 866,019 1,186,463
Accrued investment advisory fees (Note D) ............. 31,568 3,937 7,199
Accrued expenses ...................................... 8,333 1,603 2,415
----------- ----------- -----------
TOTAL LIABILITIES ...................................
6,964,368 650,440 1,724,136
NET ASSETS ............................................. $48,517,886 $ 9,230,090 $13,126,023
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital paid in ....................................... $39,523,897 $ 8,857,656 $11,397,022
Overdistribution of net investment income .............
Accumulated net realized gain (loss) on investments ... 1,180,117 (34,665)
Net unrealized gain on investments .................... 7,813,872 407,099 1,861,175
Net unrealized gain (loss) on translation of
assets and liabilities in foreign currencies (Note C)
Capital gain distributions required for
Federal tax purposes over amounts
recognized for financial reporting (Note C) ......... (132,174)
----------- ----------- -----------
NET ASSETS ............................................. $48,517,886 $ 9,230,090 $13,126,023
=========== =========== ===========
Shares of common stock outstanding (no par value,
1,000,000,000 shares authorized) .................... 2,715,671 871,579 910,807
=========== =========== ===========
Net asset value, offering and redemption price per share $ 17.87 $ 10.59 $ 14.41
=========== =========== ===========
<CAPTION>
CAPITAL EMERGING
GROWTH BALANCED GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS
Investments-at cost-see accompanying portfolios ........ $31,535,862 $14,870,294 $ 9,812,337
=========== =========== ===========
Investments, at market value (Note B and C) ........... $40,423,132 $16,122,275 $11,251,716
Cash .................................................. 14,956,986 46,724 320,655
Receivable for accrued investment income .............. 50,512 74,382 1,641
Receivable for portfolio securities sold .............. 224,730 1,003,675
Net receivable for capital shares sold ................ 131,600 109,157
Deferred organization costs (Note B) .................. 902 897
----------- ----------- -----------
TOTAL ASSETS ....................................... 55,563,132 16,469,008 12,686,844
LIABILITIES
Net payable for capital shares redeemed ............... 224
Dividends payable ..................................... 4,559,939 1,243,503
Payable for portfolio securities purchased ............ 1,097,075 678,115 1,227,078
Accrued investment advisory fees (Note D) ............. 41,461 9,085 6,962
Accrued expenses ...................................... 11,628 5,813 13,280
----------- ----------- -----------
TOTAL LIABILITIES ...................................
5,710,103 1,936,740 1,247,320
NET ASSETS ............................................. $49,853,029 $14,532,268 $11,439,524
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital paid in ....................................... $39,364,560 $13,112,460 $ 9,966,663
Overdistribution of net investment income ............. (1,143)
Accumulated net realized gain (loss) on investments ... 1,602,334 167,827 33,482
Net unrealized gain on investments .................... 8,887,270 1,251,981 1,439,379
Net unrealized gain (loss) on translation of
assets and liabilities in foreign currencies (Note C) 8
Capital gain distributions required for
Federal tax purposes over amounts
recognized for financial reporting (Note C) .........
----------- ----------- -----------
NET ASSETS ............................................. $49,853,029 $14,532,268 $11,439,524
=========== =========== ===========
Shares of common stock outstanding (no par value,
1,000,000,000 shares authorized) .................... 2,869,198 1,220,439 860,878
=========== =========== ===========
Net asset value, offering and redemption price per share $ 17.38 $ 11.91 $ 13.29
=========== =========== ===========
</TABLE>
See notes to financial statements.
23
<PAGE> 45
CHUBB AMERICA FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
WORLD
GROWTH MONEY GOLD
STOCK MARKET STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .......................................... $ 699,258 $ 453,581 $ 27,226
Dividends ......................................... 1,641,400 77,501
Foreign taxes withheld ............................ (103,016) (4,946)
------------ --------- -----------
Total investment
income ......................................... 2,237,642 453,581 99,781
------------ --------- -----------
Expenses:
Advisory fees (Note D) ............................ 511,260 40,941 59,640
Custodian fees .................................... 71,726 1,622 5,775
Shareholder reports ............................... 27,618 3,436 3,139
Professional fees ................................. 20,623 2,422 2,445
Insurance expense ................................. 5,431 651 639
Directors fees .................................... 2,328 279 274
Security valuation ................................ 15,470 666 6,478
Miscellaneous expenses ............................ 4,592 1,878 1,876
Amortization of deferred organization
costs (Note B) ...................................
------------ --------- -----------
Total expenses .................................. 659,048 51,895 80,266
------------ --------- -----------
Net investment
income (loss) .................................. 1,578,594 401,686 19,515
------------ --------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on investments ............ 2,331,370 (59) 1,128,650
Net realized loss from foreign currency transactions (144,377) (5,423)
Net unrealized gain (loss) on investments .......... 6,906,079 1,316 (763,459)
Net unrealized gain (loss) on translation
of assets and liabilities in foreign
currencies ........................................ (26,053) 8
------------ --------- -----------
Net realized and unrealized gain on
investments and foreign currency ............. 9,067,019 1,257 359,776
------------ --------- -----------
Net increase in net assets
resulting from operations ......................... $ 10,645,613 $ 402,943 $ 379,291
============ ========= ===========
</TABLE>
(A) For the period from May 1, 1995 (commencement of operations) to December 31,
1995
See notes to financial statements.
24
<PAGE> 46
<TABLE>
<CAPTION>
DOMESTIC GROWTH
GROWTH AND CAPITAL EMERGING
STOCK BOND INCOME GROWTH BALANCE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(A)
--------- --------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .......................................... $ 102,806 $ 707,645 $ 23,578 $ 334,901 $ 475,627 $ 30,454
Dividends ......................................... 671,711 191,856 198,249 120,628 2,747
Foreign taxes withheld ............................ (2,108) (3,929)
----------- ---------- ---------- ----------- ---------- ----------
Total investment
income ......................................... 774,517 707,645 213,326 529,221 596,255 33,201
----------- ---------- ---------- ----------- ---------- ----------
Expenses:
Advisory fees (Note D) ............................ 317,840 50,107 65,332 387,176 106,430 33,463
Custodian fees .................................... 8,656 1,229 3,060 17,191 13,984 20,239
Shareholder reports ............................... 17,466 3,949 3,698 16,105 5,684 1,999
Professional fees ................................. 12,681 3,101 2,591 11,473 4,327 1,110
Insurance expense ................................. 3,363 820 691 3,053 1,146 307
Directors fees .................................... 1,441 351 296 1,308 491 132
Security valuation ................................ 4,904 1,207 2,789 6,175 6,337 9,414
Miscellaneous expenses ............................ 3,413 1,981 1,900 3,232 2,164 1,678
Amortization of deferred organization
costs (Note B) ................................... 710 713 713
----------- ---------- ---------- ----------- ---------- ----------
Total expenses .................................. 369,764 62,745 81,067 446,426 141,276 68,342
----------- ---------- ---------- ----------- ---------- ----------
Net investment
income (loss) .................................. 404,753 644,900 132,259 82,795 454,979 (35,141)
----------- ---------- ---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on investments ............ 6,833,811 194,936 263,627 6,193,650 956,351 68,623
Net realized loss from foreign currency transactions (1,143)
Net unrealized gain (loss) on investments .......... 3,980,606 775,732 1,988,518 7,917,932 1,446,230 1,439,379
Net unrealized gain (loss) on translation
of assets and liabilities in foreign
currencies ........................................ 1
----------- ---------- ---------- ----------- ---------- ----------
Net realized and unrealized gain on
investments and foreign currency ............... 10,814,417 970,668 2,252,145 14,110,440 2,402,581 1,508,002
----------- ---------- ---------- ----------- ---------- ----------
Net increase in net assets
resulting from operations ......................... $11,219,170 $1,615,568 $2,384,404 $14,193,235 $2,857,560 $1,472,861
=========== ========== ========== =========== ========== ==========
</TABLE>
See notes to financial statements.
25
<PAGE> 47
CHUBB AMERICA FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WORLD GROWTH MONEY MARKET
STOCK PORTFOLIO PORTFOLIO
----------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1995 31, 1994
-------- ----------- -------- --------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) .......... $ 1,578,594 $ 785,890 $ 401,686 $ 259,435
Net realized gain (loss) on
investments .......................... 2,331,370 2,028,789 (59) (886)
Net realized gain (loss) from foreign
currency transactions ................ (144,377) (102,259)
Net unrealized gain (loss)
on investments ....................... 6,906,079 (4,696,572) 1,316 (507)
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies .... (26,053) 4,667
------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations ............ 10,645,613 (1,979,485) 402,943 258,042
Dividends to shareholders from
net investment income .................. (1,504,890) (683,631) (401,686) (259,435)
Dividends to shareholders in excess
of net investment income ............... (265)
Distributions to shareholders from
capital gains .......................... (1,647,022) (2,213,897)
Distributions to shareholders in excess
of capital gains ....................... (452,287)
Increase (decrease) in net assets derived
from shareholder transactions (Note E) . 13,294,888 16,202,192 630,934 2,620,697
------------ ------------ ----------- -----------
Net increase (decrease) in
net assets ............................ 20,788,589 10,872,627 632,191 2,619,304
Net Assets:
Beginning of period .................... 52,903,768 42,031,141 7,680,485 5,061,181
------------ ------------ ----------- -----------
End of period (1) ...................... $ 73,692,357 $ 52,903,768 $ 8,312,676 $ 7,680,485
============ ============ =========== ===========
(1) Including overdistribution of
net investment income ............... $ (454,018) $ 0 $ 0 $ 0
============ ============ =========== ===========
<CAPTION>
GOLD STOCK DOMESTIC GROWTH STOCK
PORTFOLIO PORTFOLIO
------------------------- ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1995 31, 1994
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) .......... $ 19,515 $ 14,891 $ 404,753 $ 187,059
Net realized gain (loss) on
investments .......................... 1,128,650 109,276 6,833,811 2,737,402
Net realized gain (loss) from foreign
currency transactions ................ (5,423) (2,987)
Net unrealized gain (loss)
on investments ....................... (763,459) (1,382,511) 3,980,606 (729,515
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies .... 8 2
----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations ............ 379,291 (1,261,329) 11,219,170 2,194,946
Dividends to shareholders from
net investment income .................. (19,549) (11,870) (404,753) (187,059
Dividends to shareholders in excess
of net investment income ............... (18,006)
Distributions to shareholders from
capital gains .......................... (48,375) (6,681,176) (2,502,153
Distributions to shareholders in excess
of capital gains .......................
Increase (decrease) in net assets derived
from shareholder transactions (Note E) . (825,716) 809,618 12,925,979 6,880,643
----------- ----------- ------------ ------------
Net increase (decrease) in
net assets ............................ (483,980) (511,956) 17,059,220 6,386,377
Net Assets:
Beginning of period .................... 7,351,625 7,863,581 31,458,666 25,072,289
----------- ----------- ------------ ------------
End of period (1) ...................... $ 6,867,645 $ 7,351,625 $ 48,517,886 $ 31,458,666
=========== =========== ============ ============
(1) Including overdistribution of
net investment income ............... $ (71,804) $ 0 $ 0 $ 0
=========== =========== ============ ============
</TABLE>
See notes to financial statements.
26
<PAGE> 48
<TABLE>
<CAPTION>
BOND GROWTH AND INCOME
PORTFOLIO PORTFOLIO
------------------------ ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1995 31, 1994
--------- -------- -------- --------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) .......... $ 644,900 $ 472,011 $ 132,259 $ 65,424
Net realized gain (loss) on
investments .......................... 194,936 (227,339) 263,627 128,139
Net realized gain (loss) from foreign
currency transactions ................
Net unrealized gain (loss)
on investments ....................... 775,732 (402,014) 1,988,518 (406,681)
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies ....
------------ ------------ ------------ -----------
Net increase (decrease) in net assets
resulting from operations ............ 1,615,568 (157,342) 2,384,404 (213,118)
Dividends to shareholders from
net investment income .................. (644,900) (472,011) (132,259) (65,424)
Dividends to shareholders in excess
of net investment income ...............
Distributions to shareholders from
capital gains .......................... (263,627) (192,338)
Distributions to shareholders in excess
of capital gains ....................... (132,174)
Increase (decrease) in net assets derived
from shareholder transactions (Note E) . (4,807,023) 8,233,919 5,659,207 3,249,910
------------ ------------ ------------ -----------
Net increase (decrease) in
net assets ............................ (3,836,355) 7,604,566 7,515,551 2,779,030
Net Assets:
Beginning of period .................... 13,066,445 5,461,879 5,610,472 2,831,442
------------ ------------ ------------ -----------
End of period (1) ...................... $ 9,230,090 $ 13,066,445 $ 13,126,023 $ 5,610,472
============ ============ ============ ===========
(1) Including overdistribution of
net investment income ............... $ 0 $ 0 $ 0 $ 0
============ ============ ============ ===========
<CAPTION>
CAPITAL GROWTH BALANCED EMERGING GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------- ----------------------- ---------------
PERIOD
YEAR YEAR YEAR YEAR MAY 1,
ENDED ENDED ENDED ENDED 1995 TO
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1995 31, 1994 31, 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (loss) .......... $ 82,795 $ 53,475 $ 454,979 $ 448,353 $ (35,141)
Net realized gain (loss) on
investments .......................... 6,193,650 302,046 956,351 159,254 68,623
Net realized gain (loss) from foreign
currency transactions ................ (1,143) 17
Net unrealized gain (loss)
on investments ....................... 7,917,932 (893,606) 1,446,230 (783,353) 1,439,379
Net unrealized gain (loss) on
translation of assets and
liabilities in foreign currencies .... 1 28
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations ............ 14,193,235 (538,040) 2,857,560 (175,746) 1,472,861
Dividends to shareholders from
net investment income .................. (82,795) (53,492) (454,979) (448,353)
Dividends to shareholders in excess
of net investment income ...............
Distributions to shareholders from
capital gains .......................... (4,477,144) (546,146) (868,152) (163,739)
Distributions to shareholders in excess
of capital gains ....................... (114,172)
Increase (decrease) in net assets derived
from shareholder transactions (Note E) . 12,655,647 13,442,447 (1,767,014) 3,848,793 9,966,663
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
net assets ............................ 22,288,943 12,190,597 (232,585) 3,060,955 11,439,524
Net Assets:
Beginning of period .................... 27,564,086 15,373,489 14,764,853 11,703,898 0
------------ ------------ ------------ ------------ ------------
End of period (1) ...................... $ 49,853,029 $ 27,564,086 $ 14,532,268 $ 14,764,853 $ 11,439,524
============ ============ ============ ============ ============
(1) Including overdistribution of
net investment income ............... $ (1,143) $ 0 $ 0 $ 0 $ 0
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
27
<PAGE> 49
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE A--ORGANIZATION
Chubb America Fund, Inc. (the "Company") is a diversified open-end series
management investment company registered under the Investment Company Act of
1940, as amended. The Company was incorporated under the laws of the State of
Maryland on October 19, 1984 for the purpose of funding Flexible Premium
Variable Life Insurance Policies issued by Chubb Life Insurance Company of
America ("Chubb Life"). The Company is composed of nine separate portfolios (the
"Portfolios"): the World Growth Stock Portfolio, the Money Market Portfolio, the
Gold Stock Portfolio, the Domestic Growth Stock Portfolio, the Bond Portfolio,
the Growth and Income Portfolio, the Capital Growth Portfolio, the Balanced
Portfolio and the Emerging Growth Portfolio. Chubb Life's ownership at December
31, 1995 is as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF
PORTFOLIO SHARES OWNED SHARES OUTSTANDING
<S> <C> <C>
World Growth Stock................... 0 0
Money Market......................... 0 0
Gold Stock........................... 0 0
Domestic Growth Stock................ 0 0
Bond................................. 0 0
Growth and Income.................... 23,456 2.58%
Capital Growth....................... 13,481 0.47%
Balanced............................. 17,137 1.40%
Emerging Growth...................... 300,001 34.85%
</TABLE>
NOTE B--SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments: Investment securities are valued at the closing sales
price on the exchange on which such securities are principally traded;
securities traded in the over-the-counter market and securities traded on a
national exchange for which no sales took place on the day of valuation are
valued at the mean of the bid and ask prices at the close of trading. Quotations
for foreign securities are in United States dollars and, accordingly, unrealized
gains and losses on these securities reflect all foreign exchange fluctuations.
Restricted securities are valued at fair value as determined in good faith by
the Board of Directors. Short-term debt instruments with a remaining maturity of
60 days or less are valued at amortized cost, which approximates market value.
Investment Security Transactions: Investment security transactions are recorded
as of the trade date, the date the order to buy or sell is executed. Dividend
income is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis.
Deferred Organizational Costs: Costs incurred by the Company in connection with
the organization and initial public offering of the Growth and Income, Capital
Growth and Balanced Portfolios have been deferred and are being amortized over a
five year period using the straight line method from the date the shares were
first offered to the public. In the event that any of the initial shares are
redeemed, by any holder thereof, during the amortization period, the proceeds
will be reduced for any unamortized organizational costs in the same proportion
as the number of initial shares being redeemed bears to the number of initial
shares outstanding at the time of redemption.
Distributions to Shareholders: Distributions to shareholders from ordinary
income and net realized capital gains are declared and distributed at least once
annually. Distributions to shareholders are recorded on the ex-dividend date.
28
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE B--SIGNIFICANT ACCOUNTING POLICIES--(Continued)
The Company distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as dividends
in excess of net investment income or accumulated net realized gains.
Foreign Currency Transactions: The World Growth Stock, Gold Stock and Capital
Growth Portfolios engage in portfolio transactions that are denominated
in foreign currency. All related receivables and payables are marked to market
daily based on the most recent exchange rates listed at the close of the New
York Stock Exchange.
The portfolios do not isolate the portion of the operating results due to
changes in foreign exchange rates on investments from the fluctuations arising
from changes in the market value of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign currency gains and losses arise from the
fluctuation of exchange rates between trade date and settlement date on
security transactions and from the difference between accrual date and payment
date on accrued investment income. Net unrealized foreign exchange gains and
losses are related to the fluctuation of exchange rates on the payable and
receivables for securities and accrued investment income at December 31, 1995.
Federal Income Taxes: It is the policy of the Company for each Portfolio to
qualify as a regulated investment company by complying with the requirements of
the Internal Revenue Code applicable to regulated investment companies, and by
distributing all of its ordinary income and net realized capital gains.
Therefore, no Federal tax provision is required.
Foreign taxes withheld represent amounts withheld by foreign tax authorities,
net of refunds recoverable.
NOTE C--INVESTMENTS
Net realized gains and losses on investment securities sold are determined by
using the first-in, first-out method. The aggregate cost of investments owned
for Federal income tax purposes is the same as for financial reporting purposes.
As of December 31, 1995, gross unrealized gains and losses were as follows.
<TABLE>
<CAPTION>
Gross Gross Net
Unrealized Unrealized Unrealized
Gains Losses Gain
----------- ---------- -----------
<S> <C> <C> <C>
World Growth Stock Portfolio ........... $16,465,369 $3,508,606 $12,956,763
Money Market Portfolio ................. 1,316 0 1,316
Gold Stock Portfolio ................... 1,331,118 648,916 682,202
Domestic Growth Stock Portfolio ........ 11,180,945 3,367,073 7,813,872
Bond Portfolio ......................... 407,099 0 407,099
Growth and Income Portfolio ............ 2,130,676 269,501 1,861,175
Capital Growth Portfolio ............... 9,185,288 298,018 8,887,270
Balanced Portfolio ..................... 1,399,253 147,272 1,251,981
Emerging Growth Portfolio .............. 1,804,201 364,822 1,439,379
</TABLE>
29
<PAGE> 51
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE C--INVESTMENTS--(CONTINUED)
As of December 31, 1995, the World Growth Stock Portfolio had an unrealized
foreign currency loss of $29,038, the Gold Stock Portfolio had an unrealized
foreign currency gain of $8, and the Capital Growth Portfolio had an unrealized
foreign currency gain of $8.
At December 31, 1995, realized capital losses, for Federal income tax purposes,
available to be used to offset future realized capital gains are as follows: the
Money Market Portfolio has $696 which expires in 2002; the Gold Stock Portfolio
has $332,934, of which $49,107 expires in 2000, and $283,827 expires in 2001;
the Bond Portfolio has $34,665 which expires in 2002.
In addition, during the period from November 1, 1995 through December 31, 1995,
the World Growth Stock Portfolio incurred foreign currency losses of $36,546,
the Money Market Portfolio incurred capital losses of $249, the Gold Stock
Portfolio incurred currency losses of $1,087, and the Growth and Income
Portfolio incurred capital losses of $132,174 that are treated for Federal
Income tax purposes as if they occurred on January 1, 1996. Accordingly, these
Portfolios made distributions, as required by Internal Revenue Code Regulations,
in excess of amounts recognized for financial reporting purposes.
The Gold Stock Portfolio had investments in passive foreign investment companies
during the year which were marked to market for Federal tax purposes. A
distribution of $22,342 on the Gold Stock Portfolio was declared based upon this
mark to market adjustment, resulting in distributions in excess of net
investment income for financial statement purposes.
Purchases and sales of investment securities for the period ended December 31,
1995, other than short-term obligations, were as follows:
<TABLE>
<CAPTION>
PROCEEDS
COST OF FROM
INVESTMENT INVESTMENT
SECURITIES SECURITIES
PURCHASED SOLD
--------- ----------
<S> <C> <C>
World Growth Stock Portfolio ........... $22,899,825 $10,485,554
Gold Stock Portfolio ................... 1,741,798 2,862,440
Domestic Growth Stock Portfolio ........ 37,089,352 25,869,120
Bond Portfolio ......................... 12,360,796 16,928,636
Growth and Income Portfolio ............ 8,141,500 2,682,700
Capital Growth Portfolio ............... 64,875,023 51,242,773
Balanced Portfolio ..................... 21,410,083 18,841,997
Emerging Growth Portfolio .............. 10,622,400 1,878,205
</TABLE>
NOTE D--INVESTMENT ADVISORY FEES AND MANAGEMENT AGREEMENT
The Company has entered into an investment management agreement with Chubb
Investment Advisory Corporation, a wholly-owned subsidiary of Chubb Life. Under
the agreement, Chubb Investment Advisory Corporation provides investment
management and certain administrative services for the Company. Chubb Investment
Advisory Corporation has, in turn, retained Templeton, Galbraith & Hansberger,
Ltd. to provide investment advisory services for the World Growth Stock
Portfolio; Chubb Asset Managers, Inc. to provide investment advisory services
for the Money Market, Bond, and Growth and Income Portfolios; Van Eck Associates
Corporation to provide investment advisory services for the Gold Stock
Portfolio; Pioneering Management Corporation to provide investment advisory
services for the Domestic Growth Stock Portfolio; Janus Capital Corporation to
provide investment advisory services for the Capital Growth Portfolio; Phoenix
Investment Counsel to provide investment advisory services for the Balanced
Portfolio, and MFS Asset Management
30
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE D--INVESTMENT ADVISORY FEES AND MANAGEMENT AGREEMENT--(CONTINUED)
Group to provide investment advisory services for the Emerging Growth Portfolio.
For its investment management and administrative services, Chubb Investment
Advisory Corporation is paid an annual fee through a daily charge based on a
percentage of the average daily net assets of each Portfolio as shown below:
<TABLE>
<CAPTION>
FIRST NEXT OVER
$200 $1.1 $1.3
MILLION BILLION BILLION
------- ------- -------
<S> <C> <C> <C>
World Growth Stock Portfolio .75% .70% .65%
Money Market Portfolio .50% .45% .40%
Gold Stock Portfolio .75% .70% .65%
Domestic Growth Stock Portfolio .75% .70% .65%
Bond Portfolio .50% .45% .40%
Growth and Income Portfolio .75% .70% .65%
Capital Growth Portfolio 1.00% .95% .90%
Balanced Portfolio .75% .70% .65%
Emerging Growth Portfolio .80% .75% .70%
</TABLE>
NOTE E--SHAREHOLDERS' TRANSACTIONS
Following is a summary of transactions with shareholders for each Portfolio.
<TABLE>
<CAPTION>
WORLD GROWTH STOCK PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 1,079,198 $ 21,534,683 1,035,573 $ 21,466,773
Shares issued as reinvestment of
dividends .................... 149,363 2,838,549 168,068 3,486,913
Shares redeemed ................ (537,061) (11,078,344) (431,951) (8,751,494)
--------- ------------ --------- ------------
Net increase ............... 691,500 $ 13,294,888 771,690 $ 16,202,192
========= ============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 1,632,081 $ 17,200,276 1,254,266 $ 13,015,646
Shares issued as reinvestment of
dividends .................... 25,311 259,435 9,766 100,195
Shares redeemed ................ (1,597,452) (16,828,777) (1,008,034) (10,495,144)
---------- ------------ ---------- ------------
Net increase ............... 59,940 $ 630,934 255,998 $ 2,620,697
========== ============ ========== ============
</TABLE>
31
<PAGE> 53
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE E--SHAREHOLDERS' TRANSACTIONS-(CONTINUED)
<TABLE>
<CAPTION>
GOLD STOCK PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 186,086 $ 2,934,007 157,979 $ 2,772,324
Shares issued as reinvestment of
dividends .................... 3,131 50,893 881 16,196
Shares redeemed ................ (228,093) (3,810,616) (120,493) (1,978,902)
-------- ----------- -------- -----------
Net increase (decrease) .... (38,876) $ (825,716) 38,367 $ 809,618
======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
DOMESTIC GROWTH STOCK PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 772,787 $ 13,629,978 504,196 $ 8,172,260
Shares issued as reinvestment of
dividends .................... 119,026 1,896,979 185,687 2,977,104
Shares redeemed ................ (150,022) (2,600,978) (268,980) (4,268,721)
-------- ------------ -------- ------------
Net increase ............... 741,791 $ 12,925,979 420,903 $ 6,880,643
======== ============ ======== ============
</TABLE>
<TABLE>
<CAPTION>
BOND PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 570,322 $ 6,012,459 1,223,216 $ 12,359,424
Shares issued as reinvestment of
dividends .................... 48,644 472,011 41,407 426,036
Shares redeemed ................ (1,093,969) (11,291,493) (449,159) (4,551,541)
---------- ------------ --------- ------------
Net increase (decrease) .... (475,003) $ (4,807,023) 815,464 $ 8,233,919
========== ============ ========= ============
</TABLE>
32
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE E--SHAREHOLDERS' TRANSACTIONS-(CONTINUED)
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 513,526 $ 7,033,965 293,263 $ 3,529,692
Shares issued as reinvestment of
dividends .................... 17,247 193,563 12,930 156,535
Shares redeemed ................ (119,878) (1,568,321) (35,479) (436,317)
-------- ----------- ------- -----------
Net increase ............... 410,895 $ 5,659,207 270,714 $ 3,249,910
======== =========== ======= ===========
</TABLE>
<TABLE>
<CAPTION>
CAPITAL GROWTH PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 1,012,623 $ 15,822,540 1,017,067 $ 13,892,818
Shares issued as reinvestment of
dividends .................... 35,107 469,711 92,665 1,310,134
Shares redeemed ................ (238,732) (3,636,604) (127,748) (1,760,505)
--------- ------------ --------- ------------
Net increase ............... 808,998 $ 12,655,647 981,984 $ 13,442,447
========= ============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued .................. 423,487 $ 4,897,002 420,855 $ 4,654,199
Shares issued as reinvestment of
dividends .................... 49,731 527,979 41,717 466,037
Shares redeemed ................ (643,500) (7,191,995) (115,035) (1,271,443)
--------- ----------- -------- -----------
Net increase (decrease) .... (170,282) $(1,767,014) 347,537 $ 3,848,793
========= =========== ======== ===========
</TABLE>
33
<PAGE> 55
NOTES TO FINANCIAL STATEMENTS
CHUBB AMERICA FUND, INC.
DECEMBER 31, 1995
NOTE E--SHAREHOLDERS' TRANSACTIONS-(CONTINUED)
<TABLE>
<CAPTION>
EMERGING GROWTH PORTFOLIO*
--------------------------------------------
FOR PERIOD MAY 1, 1995
TO DECEMBER 31, 1995
--------------------------
SHARES DOLLARS
------ -------
<S> <C> <C>
Shares issued .................. 864,931 $ 10,018,440
Shares issued as reinvestment of
dividends
Shares redeemed ................ (4,053) (51,777)
------- ------------
Net increase ............... 860,878 $ 9,966,663
======= ============
</TABLE>
*Inception Date -- May 1, 1995
34
<PAGE> 56
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
WORLD GROWTH STOCK PORTFOLIO
------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ............................ $ 19.00 $ 20.89 $ 16.73 $ 16.45 $ 13.70
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ........... 0.45 0.25 0.24 0.35 0.34
Net gains and losses on
securities and foreign currency
(both realized and unrealized) 2.65 (0.89) 5.40 0.65 2.75
-------------- -------------- -------------- -------------- --------------
Total from investment
operations .................... 3.10 (0.64) 5.64 1.00 3.09
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ............. (0.43) (0.25) (0.24) (0.35) (0.34)
Dividends in excess of net
investment income ..............
Distributions from capital
gains ......................... (0.47) (0.81) (1.24) (0.37)
Distributions in excess of
capital gains ................. (0.19)
Returns of capital...............
-------------- -------------- -------------- -------------- --------------
Total distributions ............. (0.90) (1.25) (1.48) (0.72) (0.34)
-------------- -------------- -------------- -------------- --------------
Net asset value, end of year ...... $ 21.20 $ 19.00 $ 20.89 $ 16.73 $ 16.45
============== ============== ============== ============== ==============
Total Return (A) .................. 16.35% (3.05%) 33.73% 6.10% 22.53%
Ratios to Average Net Assets:
Expenses ........................ 0.96% 1.00% 1.04% 1.17% 1.14%
Net investment income ........... 2.31% 1.56% 1.64% 2.19% 2.40%
Portfolio Turnover Rate ........... 18.09% 18.47% 34.90% 32.27% 50.06%
Net Assets, At End of Year ........ $ 73,692,357 $ 52,903,768 $ 42,031,141 $ 25,416,357 $ 22,659,930
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
35
<PAGE> 57
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:(A)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ....................... $ 10.25 $ 10.26 $ 10.22 $ 10.22 $ 10.21
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.50 0.35 0.20 0.29 0.52
Net gains and losses
on securities (both
realized and unrealized) . 0.02 (0.01) 0.04 0.01
------------- ------------- ------------- ------------- -------------
Total from investment
operations ............... 0.52 0.34 0.24 0.29 0.53
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.50) (0.35) (0.20) (0.29) (0.52)
Dividends in excess of net
investment income ........
Distributions from capital
gains ....................
Distributions in excess of
capital gains ............
Returns of capital .........
------------- ------------- ------------- ------------- -------------
Total distributions ........ (0.50) (0.35) (0.20) (0.29) (0.52)
------------- ------------- ------------- ------------- -------------
Net asset value, end of year . $ 10.27 $ 10.25 $ 10.26 $ 10.22 $ 10.22
============= ============= ============= ============= =============
Total Return (B) ............. 5.06% 3.28% 2.32% 2.83% 5.18%
Ratios to Average Net Assets:
Expenses ................... 0.63% 0.65% 0.74% 0.85% 0.85%
Net investment income ...... 4.89% 3.31% 2.32% 2.81% 4.95%
Portfolio Turnover Rate (C) .. N/A N/A N/A N/A N/A
Net Assets, At End of Year ... $ 8,312,676 $ 7,680,485 $ 5,061,181 $ 3,956,152 $ 3,672,941
</TABLE>
- ------------
(A) The per share amounts which are shown have been computed based on the
average number of shares outstanding during each year.
(B) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
(C) There were no purchases and/or sales of securities other than short-term
obligations during the year. Therefore, the portfolio turnover rate has
not been calculated.
36
<PAGE> 58
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:(A)
<TABLE>
<CAPTION>
GOLD STOCK PORTFOLIO
-------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ............................ $ 16.25 $ 19.00 $ 11.57 $ 11.99 $ 12.76
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ........... 0.05 0.03 0.02 0.03 0.07
Net gains and losses on
securities and foreign currency
(both realized and unrealized) 0.40 (2.65) 7.43 (0.42) (0.77)
------------- ------------- ------------- ------------- -------------
Total from investment
operations .................... 0.45 (2.62) 7.45 (0.39) (0.70)
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ............. (0.05) (0.03) (0.02) (0.03) (0.07)
Dividends in excess of net
investment income ............. (0.04)
Distributions from capital
gains .........................
Distributions in excess of
capital gains ................. (0.10)
Returns of capital...............
------------- ------------- ------------- ------------- -------------
Total distributions ............. (0.09) (0.13) (0.02) (0.03) (0.07)
------------- ------------- ------------- ------------- -------------
Net asset value, end of year ...... $ 16.61 $ 16.25 $ 19.00 $ 11.57 $ 11.99
============= ============= ============= ============= =============
Total Return (A) .................. 2.76% (13.77%) 63.90% (3.29%) (5.48%)
Ratios to Average Net Assets:
Expenses ........................ 1.01% 0.99% 1.01% 1.13% 1.16%
Net investment income ........... 0.24% 0.18% 0.14% 0.24% 0.57%
Portfolio Turnover Rate ........... 23.98% 11.12% 7.32% 7.78% 14.23%
Net Assets, At End of Year ........ $ 6,867,645 $ 7,351,625 $ 7,863,581 $ 4,338,297 $ 4,646,951
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
37
<PAGE> 59
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
DOMESTIC GROWTH STOCK PORTFOLIO
---------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ...................... $ 15.94 $ 16.14 $ 15.16 $ 12.96 $ 10.15
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ..... 0.15 0.09 0.12 0.14 0.24
Net gains and losses
on securities (both
realized and unrealized) 4.48 1.12 2.29 3.27 3.13
-------------- -------------- -------------- -------------- --------------
Total from investment
operations .............. 4.63 1.21 2.41 3.41 3.37
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ....... (0.15) (0.09) (0.12) (0.14) (0.24)
Dividends in excess of net
investment income .......
Distributions from capital
gains ................... (2.55) (1.32) (1.31) (1.07) (0.32)
Distributions in excess of
capital gains ...........
Returns of capital ........
-------------- -------------- -------------- -------------- --------------
Total distributions ....... (2.70) (1.41) (1.43) (1.21) (0.56)
-------------- -------------- -------------- -------------- --------------
Net asset value, end of year $ 17.87 $ 15.94 $ 16.14 $ 15.16 $ 12.96
============== ============== ============== ============== ==============
Total Return (A) ............ 29.72% 7.66% 15.89% 26.50% 33.18%
Ratios to Average Net Assets:
Expenses .................. 0.87% 0.89% 0.97% 1.07% 1.13%
Net investment income ..... 0.95% 0.63% 0.76% 1.07% 2.02%
Portfolio Turnover Rate ..... 64.17% 46.65% 49.47% 41.36% 40.93%
Net Assets, At End of Year .. $ 48,517,886 $ 31,458,666 $ 25,072,289 $ 19,985,838 $ 15,583,806
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
38
<PAGE> 60
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
BOND PORTFOLIO
-------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year ....................... $ 9.70 $ 10.28 $ 10.21 $ 10.61 $ 9.83
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.74 0.35 0.74 0.66 0.72
Net gains and losses
on securities (both
realized and unrealized).. 0.89 (0.58) 0.13 0.13 0.79
-------------- -------------- -------------- -------------- --------------
Total from investment
operations ............... 1.63 (0.23) 0.87 0.79 1.51
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.74) (0.35) (0.74) (0.66) (0.73)
Dividends in excess of net
investment income.........
Distributions from capital
gains .................... (0.06) (0.53)
Distributions in excess of
capital gains ............
Returns of capital..........
-------------- -------------- -------------- -------------- --------------
Total distributions ........ (0.74) (0.35) (0.80) (1.19) (0.73)
-------------- -------------- -------------- -------------- --------------
Net asset value, end of year . $ 10.59 $ 9.70 $ 10.28 $ 10.21 $ 10.61
============== ============== ============== ============== ==============
Total Return (A) ............. 16.76% (2.28%) 8.68% 7.46% 15.34%
Ratios to Average Net Assets:
Expenses ................... 0.63% 0.68% 0.74% 0.88% 1.03%
Net investment income ...... 6.43% 6.07% 7.59% 6.83% 7.12%
Portfolio Turnover Rate ...... 127.74% 140.30% 112.66% 81.23% 23.73%
Net Assets, At End of Year ... $ 9,230,090 $ 13,066,445 $ 5,461,879 $ 4,042,506 $ 3,516,314
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
39
<PAGE> 61
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
------------------------------------------------------------------------
PERIOD FROM
YEAR YEAR YEAR MAY 1,
ENDED ENDED ENDED 1992 TO
JUNE DECEMBER DECEMBER DECEMBER
30, 1995 31, 1994 31, 1993 31, 1992(A)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period ...................... $ 11.22 $ 12.35 $ 11.10 $ 10.27
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ....... 0.15 0.13 0.12 0.02
Net gains and losses
on securities (both
realized and unrealized) .. 3.62 (0.65) 1.53 0.83
-------------- -------------- -------------- --------------
Total from investment
operations ................ 3.77 (0.52) 1.65 0.85
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ......... (0.15) (0.13) (0.12) (0.02)
Dividends in excess of net
investment income..........
Distributions from capital
gains ..................... (0.29) (0.48) (0.28)
Distributions in excess of
capital gains ............. (0.14)
Returns of capital...........
-------------- -------------- -------------- --------------
Total distributions ......... (0.58) (0.61) (0.40) (0.02)
-------------- -------------- -------------- --------------
Net asset value, end of period $ 14.41 $ 11.22 $ 12.35 $ 11.10
============== ============== ============== ==============
Total Return (B) .............. 33.58% (4.24%) 14.94% 12.48% (C)
Ratios to Average Net Assets:
(Annualized)
Expenses .................... 0.92% 1.10% 1.35% 2.09% (C)
Net investment income ....... 1.50% 1.52% 1.38% 0.36% (C)
Portfolio Turnover Rate ....... 32.30% 38.17% 77.68% 54.11%
Net Assets, At End of Period .. $ 13,126,023 $ 5,610,472 $ 2,831,442 $ 1,489,179
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992,
for sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
(C) Per share data and ratios calculated on an annualized basis.
40
<PAGE> 62
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CAPITAL GROWTH PORTFOLIO
------------------------------------------------------------------------
PERIOD FROM
YEAR YEAR YEAR MAY 1,
ENDED ENDED ENDED 1992 TO
JUNE DECEMBER DECEMBER DECEMBER
30, 1995 31, 1994 31, 1993 31, 1992(A)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period ........................... $ 13.38 $ 14.26 $ 12.42 $ 9.95
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ............ 0.03 0.03 (0.01)
Net gains and losses on securities
and foreign currency (both
realized and unrealized) ....... 5.56 (0.49) 3.03 2.69
-------------- -------------- -------------- --------------
Total from investment
operations ..................... 5.59 (0.46) 3.03 2.68
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income .............. (0.03) (0.03)
Dividends in excess of net
investment income...............
Distributions from capital
gains .......................... (1.56) (0.33) (1.19) (0.21)
Distributions in excess of
capital gains .................. (0.06)
Returns of capital................
-------------- -------------- -------------- --------------
Total distributions .............. (1.59) (0.42) (1.19) (0.21)
-------------- -------------- -------------- --------------
Net asset value, end of period ..... $ 17.38 $ 13.38 $ 14.26 $ 12.42
============== ============== ============== ==============
Total Return (B) ................... 41.74% (3.26%) 24.73% 40.40% (C)
Ratios to Average Net Assets:
(Annualized)
Expenses ......................... 1.15% 1.22% 1.33% 1.96% (C)
Net investment income ............ 0.21% 0.25% (0.11%) (0.37%)(C)
Portfolio Turnover Rate ............ 170.32% 202.04% 162.79% 104.76%
Net Assets, At End of Period ....... $ 49,853,029 $ 27,564,086 $ 15,373,489 $ 5,343,734
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992,
for sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
(C) Per share data and ratios calculated on an annualized basis.
41
<PAGE> 63
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
--------------------------------------------------------------------------
PERIOD FROM
YEAR YEAR YEAR MAY 1,
ENDED ENDED ENDED 1992 TO
DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992(A)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 10.62 $ 11.22 $ 10.77 $ 10.10
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.37 0.32 0.25 0.16
Net gains and losses
on securities (both
realized and unrealized) . 1.99 (0.47) 0.74 0.67
-------------- -------------- -------------- --------------
Total from investment
operations ............... 2.36 (0.15) 0.99 0.83
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.37) (0.32) (0.25) (0.16)
Dividends in excess of net
investment income.........
Distributions from capital
gains .................... (0.70) (0.13) (0.25)
Distributions in excess of
capital gains ............ (0.04)
Returns of capital .........
-------------- -------------- -------------- --------------
Total distributions ........ (1.07) (0.45) (0.54) (0.16)
-------------- -------------- -------------- --------------
Net asset value, end of period $ 11.91 $ 10.62 $ 11.22 $ 10.77
============== ============== ============== ==============
Total Return (B) ............. 22.35% (1.33%) 9.27% 12.33% (C)
Ratios to Average Net Assets:
(Annualized)
Expenses ................... 0.99% 1.01% 1.07% 1.43% (C)
Net investment income ...... 3.20% 3.34% 2.79% 2.80% (C)
Portfolio Turnover Rate ...... 164.70% 103.68% 65.49% 77.33%
Net Assets, At End of Period . $ 14,532,268 $ 14,764,853 $ 11,703,898 $ 6,944,437
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1992,
for sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges. Investment
returns and principal values will fluctuate and shares, when redeemed,
may be worth more or less than the original cost.
(C) Per share data and ratios calculated on an annualized basis.
42
<PAGE> 64
CHUBB AMERICA FUND, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
EMERGING GROWTH PORTFOLIO
---------------------------
PERIOD FROM
MAY 1,
1995 TO
DECEMBER
31, 1995 (A)
--------------
<S> <C>
Net asset value, beginning of
period ............................................ $ 10.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ............................. (0.04)
Net gain on securities
(both realized
and unrealized) ................................. 3.33
--------------
Total from investment
operations ...................................... 3.29
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income................................
Dividends in excess of net
investment income................................
Distributions from capital
gains............................................
Distributions in excess of
capital gains....................................
Returns of capital.................................
--------------
Total distributions ............................... 0.00
Net asset value, end of period ...................... $ 13.29
==============
Total Return (B) .................................... 32.91% (C)
Ratios to Average Net Assets:
(Annualized)
Expenses .......................................... 1.63% (C)
Net investment income ............................. (0.84%) (C)
Portfolio Turnover Rate ............................. 30.31%
Net Assets, At End of Period ........................ $ 11,439,524
</TABLE>
(A) Per share data calculated from the initial offering date, May 1, 1995,
for sale to Chubb Separate Account A.
(B) Total return assumes reinvestment of all dividends during the year and
does not reflect deduction of account fees and charges that apply to
the separate account or related insurance policies. Investment returns
and principal values will fluctuate and shares, when redeemed, may be
worth more or less than the original cost. Total return figures for
periods less than one year have not been annualized.
(C) Per share data and ratios calculated on an annualized basis.
43
<PAGE> 65
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders
Chubb America Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Chubb
America Fund, Inc. (the "Fund", comprising, respectively, the World Growth Stock
Portfolio, Money Market Portfolio, Gold Stock Portfolio, Domestic Growth Stock
Portfolio, Bond Portfolio, Growth and Income Portfolio, Capital Growth
Portfolio, Balanced Portfolio and Emerging Growth Portfolio), including the
related schedules of portfolio investments, as of December 31, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods indicated on pages 35, 36, 37,
38, 39, 40, 41, 42 and 43 of these financial statements for all Portfolios
except the Emerging Growth Portfolio, for which the statement of operations,
statement of changes in net assets and the financial highlights are for the
period from May 1, 1995 (Commencement of Operations) to December 31, 1995. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers, or other
appropriate auditing procedures where replies from brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Chubb America Fund, Inc. at December
31, 1995, the results of their operations, the changes in their net assets and
the financial highlights for each of the periods indicated above, in conformity
with generally accepted accounting principles.
/s/ ERNST & YOUNG L.L.P.
Boston, Massachusetts
February 16, 1996
<PAGE> 66
DISTRIBUTOR
Chubb Securities Corporation
One Granite Place
Concord, New Hampshire 03301
This material has been prepared for policyowners of Ensemble II variable
universal life insurance. If used for prospecting purposes, it must be preceded
or accompanied by a current prospectus and personalized illustrations. Always
read these materials carefully before investing or sending money.
CHUBB LIFE INSURANCE COMPANY OF AMERICA
Corporate Offices, One Granite Place, Concord, NH 03301
Chubb Group of Insurance Companies
