THE HUDSON RIVER TRUST
Annual Report
December 31, 1994
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MARKET CONDITIONS
The economy grew at an above-average rate during 1994. Interest rates rose
dramatically throughout the year as the Federal Reserve tightened monetary
policy in response to an economy that is growing too fast to contain inflation.
This scenario resulted in a frustrating year for investors. Although a growing
economy is positive for the financial markets over the long term, over the
short term it creates problems.
Looking at the U.S. bond market, 1994 ranked as one of its worst-performing
years. Inflation fears and the succession of interest rate hikes caused
negative market sentiment and broad declines in bond prices. In contrast to
1993's strong gains, all sectors of the bond market finished 1994 with negative
total returns. The Government bond market returns were at their lowest levels
in over 20 years. The Lehman Aggregate Index, an unmanaged index which measures
the broad bond market, was down by 2.92%. Two of the best bond market sectors
were short-term bonds and lower-quality bonds. Short-term bonds were less
affected by the overall rise in rates and lower-quality bonds declined less
than Treasuries as spreads narrowed and the strong economy gave investors
increased confidence in lower-quality credits.
In the near term, the rise in short-term interest rates will likely keep
pressure on all financial assets, including long-term bonds. However, investors
are starting to anticipate that higher rates will slow the economy before
inflation gets out of hand. As a result, long-term bond prices began to
stabilize late in 1994 and appear to be poised for a strong rally that should
begin with signs of a slowing economy and stabilizing or declining short-term
interest rates.
While the stock market fared better than the bond market, it nonetheless had a
turbulent year. The S&P 500 Index showed a positive 1.32% return for 1994, and
the Dow Jones Industrial Average, comprised of 30 blue-chip stocks, was up
5.08%. There was a wide gap, however, between these indices and that of the
typical stock. The general universe of 7,000 stocks was down 7.78%, according
to Vestex Investment Book, January 1995. Additionally, the average U.S. stock
mutual fund was down by 1.69%, according to Lipper Analytical Services.
Companies that perform well early in the economic cycle were a particularly
weak area of the stock market such as autos, retailers, transportation and
electric utilities. Though earnings are still strong, these stocks have
experienced substantial price declines.
The market's best-performing areas were internationally-oriented growth stocks
in sectors such as technology, health care and some consumer nondurables; and
cyclicals with exposure to rising commodity prices, including chemicals, papers
and metals.
Foreign stock markets fared better for the second year in a row. The unmanaged
Morgan Stanley Capital International Index was up 5.08%. International stock
markets generally outperformed the U.S. again in 1994. Japan, the largest and
most important market, rose 21% for the year ended 1994. Of course, since the
Kobe earthquake in early 1995, this is a market that will be carefully watched.
Major European markets were able to slightly outpace the U.S. Most developing
country markets suffered major declines as continued interest rate hikes by the
U.S. Federal Reserve impacted capital inflows.
U.S. stocks will probably remain under pressure in the first half of the year.
The open question is whether the Federal Reserve's action will slow the economy
down to a more sustainable growth track, one which will avoid an upsurge in
inflation. This is a reasonable possibility, but not a certainty. Interest
rates and inflation may rise uncomfortably higher before the cycle ends. It is
important to note, however, as we head into the new year, that events fall
within historical cyclical patterns. For example, historically it has been
normal in the early phases of a cycle of rising rates for the bond markets to
decline more than the stock market. Later in the cycle, however, the stock
market has generally caught up with earlier bond market declines.
The new year may be volatile for the stock and bond markets; however, our
longer-term outlook is positive. We anticipate a high degree of opportunity for
investors as the economy slows its pace, and we believe that before 1995 is
over, both markets could be on a positive recovery track.
A-2
MONEY MARKET PORTFOLIO
Raymond Papera
Vice President
Mr. Papera has managed the
Money Market Portfolio since
1990.
The Federal Reserve raised interest rates six times in 1994, leaving short-term
rates 2.5% higher for the year. Federal Open Market Committee (FOMC) members
agreed in November that there was considerable potential for higher inflation
if the economy continued to grow too quickly. With the economy's neutral
response to earlier rate increases and the emergence of early cycle growth
dynamics, the Fed may continue to push for higher rates to slow the economy and
keep inflation in check.
As year-end approached, upward movement on short-term interest rates provided
attractive investment opportunities without the risk of lengthening duration.
Much of the Portfolio's strategy throughout the year conformed with fourth
quarter market conditions, which dictated a shorter average maturity. As of
December 31, the average maturity in the Portfolio was down to 28 days. Nearly
10% of the Portfolio consists of "floating" (i.e., variable) rate instruments.
Variable rate instruments adjust their rates quarterly or monthly. As
benchmark indices of these variable rate securities have been driven up, the
performance of the floaters has also risen.
Speculation about further rate increases is likely to persist through the first
half of 1995 if inflation concerns continue. Short-term investors will seek a
current yield in line with increases in the federal funds rate. This can be
accomplished by investing in securities that would mature around scheduled FOMC
meetings. With one or possibly two interest rate increases expected during
this quarter, a careful placing of maturities will be a priority for the
Portfolio.
The Money Market Portfolio is neither guaranteed nor insured by the U.S.
Government. There can be no assurance that the Portfolio will be able to
maintain a stable net asset value.
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INVESTMENT OBJECTIVE
High level of current income, preserve its assets and
maintain liquidity
INVESTMENT POLICY
Primarily high-quality U.S. dollar denominated money market instruments
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $325.4 million
Number of Issues 44
Average Maturity 28 days
ASSET MIX DISTRIBUTION
Bank Notes 4.6%
Commercial Paper 73.3%
Time Deposits 2.8%
Variable Rate Securities 9.1%
Cash - Net 10.2%
DISTRIBUTION OF ASSETS BY MATURITY
1-30 days 63.8%
31-60 days 29.0%
61-90 days 7.2%
A-3
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
Paul DeNoon
Vice President
Mr. DeNoon has managed the
Intermediate Government
Securities Portfolio since 1993.
During the second half of 1994, the Federal Reserve continued to raise interest
rates. By December 31, short-term interest rates had reached 5.50%. The
series of increases came about in an environment of strong economic growth and
rising commodity prices. At the same time, however, trends were still
favorable in terms of broad inflation indicators such as the Consumer Price
Index. The Fed is clearly trying to slow economic growth before manufacturers
produce goods at peak levels which will lead to much higher levels of
inflation.
In the six months since we last reported, yields on two-year Treasury notes
rose from 6.17% to 7.69%. In the same period, 30-year Treasury bond yields
increased from 7.61% to 7.88%. Thus, the yield spread between long-term and
short-term Treasury notes narrowed dramatically. This environment helped the
Portfolio in the latter part of the year.
Performance for the full year improved somewhat over that of the first half.
By December 31, a portion of the Portfolio's decline in the first six months of
the year was reversed. For the second half of 1994, the return on the
Portfolio exceeded the return of its unmanaged market benchmark, the Lehman
Intermediate Government Index. This improvement resulted from an increase in
mortgage-backed securities, and because we divided much of the investments
between cash and 10-year maturity securities. This structure benefits when the
spread between short-term and long-term yields narrows.
During 1995, we believe further increases in interest rates are likely.
However, we do not expect them to be as large as those during 1994. We will
continue to be prudent in this environment, but will seek to benefit from the
Portfolio's cash position as investment opportunities develop during the year.
The Intermediate Government Securities Portfolio is neither guaranteed nor
insured by the U.S. Government.
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INVESTMENT OBJECTIVE
High current income consistent with relative stability
of principal
INVESTMENT POLICY
Primarily debt securities issued or guaranteed as to principal
and interest by the U.S. Government or any of its agencies
or instrumentalities
The Portfolio's investments will each have a final maturity of
not more than ten years or a duration not exceeding that of
a ten-year Treasury note.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $48.5 million
Number of Issues 8
Average Quality Gov't
Average Maturity 4.1 years
*As to mortgages average life
ASSET MIX DISTRIBUTION
Agencies 11.6%
Collateralized Mortg. Obligations 8.6%
Mortg.-Backed Securities 37.7%
Treasury 4.7%
Cash 37.4%
DISTRIBUTION OF ASSETS BY MATURITY*
0-1 year 37.4%
2-4 years 8.6%
4-7 years 44.0%
7-10 years 10.0%
A-4
QUALITY BOND PORTFOLIO
Paul DeNoon
Vice President
Mr. DeNoon has managed
the Quality Bond Portfolio
since its inception.
Fixed income markets continued to suffer from higher interest rates during the
second half of 1994. The Federal Reserve raised rates an additional 1.25%
during the six months in an effort to slow economic growth before it caused
higher inflation.
Performance for the full year improved considerably over that of the first
half. By December 31, a portion of the Portfolio's decline of the first six
months of the year was reversed. For the last six months of 1994, the Portfolio
outperformed its unmanaged market benchmark, the Lehman Aggregate Bond Index.
The Portfolio was helped during this period by improved sector and security
selection. We increased the Portfolio's holdings in mortgage-backed
securities, which outperformed both Treasuries and U.S. corporate bonds. In
addition, we reduced exposure to U.S. corporate debt. In general, corporate
bonds outperformed Treasuries in 1994, but at this late stage of the economic
cycle we believe most of the good news on credit quality is already reflected
in the prices of corporate bonds.
In Mexico, the new Zedillo administration unexpectedly devalued Mexico's
currency, the peso, in late December. The Portfolio was invested in Mexican
fixed income securities at the time, but these positions were sold soon after
the devaluation occurred. This limited the impact on the Portfolio and
eliminated exposure to Mexico. The Portfolio's investments in Spain were also
eliminated.
We do not anticipate any major changes in your Portfolio's strategy in 1995.
Our outlook on interest rates is guarded -- although we do believe the biggest
increases are behind us. With the Fed's determination to slow economic growth,
however, rates will likely be under continued pressure.
Please refer to the prospectus for a description of the risks involved in
international investing, including currency, economic and political risks,
as well as differences in accounting.
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INVESTMENT OBJECTIVE
High current income consistent with preservation of capital
INVESTMENT POLICY
Primarily investment grade fixed income securities
The Portfolio reserves the right to invest in convertible
debt securities, preferred stocks and dividend-paying
common stocks.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $127.6 million
Number of Issues 17
Average Quality* AAA
Average Maturity 6.1 years
* The Average Quality represents a weighted average of the Portfolio's
holdings, excluding cash, using the Standard & Poor's rating scale.
** As to mortgages average life
ASSET MIX DISTRIBUTION
Asset Back Securities 2.9%
Domestic Corp. Bonds 10.5%
Government Bonds 12.6%
Mortg.-Backed Securities 37.9%
Yankee Corp. Bonds 3.2%
Cash 32.9%
DISTRIBUTION OF ASSETS BY MATURITY**
0-1 year 32.9%
1-2 years 7.2%
2-4 years 6.0%
4-7 years 1.5%
7-10 years 36.9%
over 10 years 15.5%
A-5
HIGH YIELD PORTFOLIO
Amy Nussbaum
Vice President
Ms. Nussbaum has managed
the High Yield Portfolio
since 1992.
High yield bonds, on average, outperformed all major fixed-income securities in
1994. Nevertheless, both the overall high yield market, and the High Yield
Portfolio, in particular, experienced negative returns for the year. High
yield investors generally suffered less than investment grade investors, since
high yield issuers had relatively low average duration and the lowest default
rate in 12 years.
Rising interest rates did negatively affect returns in 1994. Most of the
Portfolio's declines were primarily due to exposure in emerging markets and to
the significant depreciation of specific supermarket and gaming issues.
The purchasing of selected foreign securities continued during 1994. We
focused mainly on purchases in emerging markets such as Argentina, Brazil and
Morocco. Unfortunately, strong gains for these markets in 1993 were reversed
in 1994. This was largely due to rising U.S. interest rates and negative
developments in many emerging markets, particularly Mexico, in which the
Portfolio did not have exposure. We expect, however, that emerging markets
that pursue sound macroeconomic fundamentals while maintaining political
stability should rebound during 1995.
The Portfolio benefited during the year from its emphasis on cyclical holdings
such as containers, chemicals and autos. These areas tend to do well in a
recovering economy. We expect to continue this emphasis during 1995, but may
shift to a more defensive strategy if cyclicals reach their economic peak.
Looking forward, the main factors that influence the high yield market remain
relatively strong. Corporate profits continue to improve, the economy is still
growing and credit problems are few. However, the market will likely continue
to be volatile as long as interest rates are in flux.
Please refer to the prospectus for a description of the risks involved in
international investing, including currency, economic and political risks, as
well as differences in accounting. Keep in mind that bonds offering the
potential for higher yields generally involve a greater degree of credit risk.
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INVESTMENT OBJECTIVE
High return by maximizing current income and, to the extent
consistent with that objective, capital appreciation
INVESTMENT POLICY
Primarily a diversified mix of high yield, fixed income
securities involving greater volatility of price and risk of
principal and income than high-quality fixed income securities
The medium and lower quality debt securities in which the
Portfolio may invest are known as "junk bonds."
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $73.9 million
Number of Issues 52
Average Quality* B
Average Maturity 6.7 years
* The Average Quality represents a weighted average of the Portfolio's
holdings, including cash, using the Standard & Poor's rating scale.
** Includes cash
ASSET MIX DISTRIBUTION
Corporate Bonds 80.6%
Foreign Bonds 10.9%
Cash & Equivalents 8.5%
DISTRIBUTION OF ASSETS** BY MATURITY
AAA-BBB 8.5%
BB-B 89.9%
CCC and Below 1.6%
A-6
APITAL PRINTING SYSTEMS]
GROWTH & INCOME PORTFOLIO
Franklin Kennedy
Senior Vice President
Mr. Kennedy has co-managed the
Growth & Income Portfolio since
its inception.
W. Theodore Kuck
Vice President
Mr. Kuck has co-managed the
Growth & Income Portfolio since
its inception.
The Growth & Income Portfolio had a total return slightly lagging its market
benchmark. Early in the year, the high-quality, higher-yielding stocks in the
equity portion of the Portfolio performed relatively well during the market
decline. The convertible segment of the Portfolio, with its orientation toward
more rapidly growing companies, provided strong performance in the second half
of the year as the markets recovered. Also, rising short-term interest rates
led to an attractive return on the Portfolio's relatively large cash position.
The equity portion of the Portfolio emphasizes higher-yielding, higher-quality
stocks, including those expected to perform well late in the business cycle,
such as chemical and energy stocks. We are also emphasizing financial and
utility stocks, which should be among the first to benefit from the peak in
interest rates expected during the year.
Beyond the current interest rate cycle, our outlook is more optimistic.
Inflation should remain in check due to the Fed's early actions. We believe
advances in technology and potentially reduced government regulation of
business should lead to attractive profits over the long term, particularly for
well-positioned growth companies. The convertible component of the Portfolio
is focused on technology and should benefit from these long-term trends.
The economy continues to grow and a further increase in short-term rates is
likely. This will put pressure on long-term investments, the economy and the
financial system, but the timing and magnitude of the impact are uncertain.
However, the Portfolio's large cash position will help cushion it in any market
decline and will allow us to explore investment opportunities in the future.
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INVESTMENT OBJECTIVE
High total return through a combination of current income
and capital appreciation
INVESTMENT POLICY
Primarily income-producing common stocks and securities
convertible into common stocks
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $31.5 million
Number of Issues 83
ASSET MIX DISTRIBUTION
Common Stock 43.8%
Convertibles 23.0%
Short-Term and Cash 33.2%
LARGEST HOLDINGS
BANK OF NEW YORK CO.*
This large New York-based commercial bank has expanded regionally
by acquiring local and suburban banks and is a growing presence in retail-
oriented banking.
UNION CAMP CORP.
Major producer of paper and packaging with interests in wood products
and chemicals.
UST, INC.
Leading producer of moist smokeless tobacco products such as
Copenhagen and Skoal. To a lesser extent, the company produces and
sells wine and other products.
EMC CORP.*
Its products are designed to improve the performance, reliability and
functionality of mainframe and midrange computer systems made by
companies like IBM and Unisys.
MOBIL CORP.
A worldwide integrated petroleum company and leading maker of
chemicals with an aggressive exploration program to develop frontier
oil fields.
PHILLIPS PETROLEUM CO.
Engaged in crude oil and natural gas exploration and production
worldwide and refining and marketing in the U.S. Also produces plastics
and petrochemicals and is the largest producer of natural gas liquids in
the U.S.
*Includes convertibles
A-7
COMMON STOCK PORTFOLIO
Tyler Smith
Senior Vice President
Mr. Smith has managed the
Common Stock Portfolio
since 1977.
It was a frustrating year for investors in 1994. After a fast start in
January, the market dropped sharply when the Federal Reserve began to raise
interest rates. Since that time, there has been a struggle between the
positive stimulus from good corporate earnings and the negative impact of
rising rates on market valuations. The Common Stock Portfolio, with its
greater emphasis on mid-size companies, lagged the unmanaged S&P 500 Stock
Index.
Going into 1995, the question remains whether it will take much higher interest
rates to slow the economy and keep inflation in check. The market has
strengthened in recent weeks, apparently reflecting investors' expectations
that the economy will slow to a sustainable rate while avoiding higher
inflation. However, interest rates and inflation may continue to rise before
the cycle ends.
Because we believe interest rates will peak in the first half of 1995, we have
maintained an overweighting in financial stocks. The emphasis is primarily on
insurance and financial services companies. Technology and entertainment also
continue as major themes; the earnings outlook is especially strong for
personal computer-related stocks.
Our longer-term outlook remains optimistic. Despite inflation concerns, the
Fed's early actions should prevent a repeat of the excesses of the late 1970s
and early 1980s. Indeed, both Congress and the President understand the need
for fiscal and monetary responsibility. With governments worldwide stressing
democracy and market economics, we believe the 1990s could be a good era for
business and for investors.
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INVESTMENT OBJECTIVE
Long-term growth of its capital and increase income
INVESTMENT POLICY
Primarily common stock and other equity-type
instruments
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $3.5 billion
Number of Issues 119
ASSET MIX DISTRIBUTION
Common Stock 96.3%
Preferred Stock 1.6%
Convertibles 1.2%
Short-Term and Cash 0.9%
LARGEST HOLDINGS
AMERICAN INTERNATIONAL GROUP, INC.
One of the world's leading insurance organizations providing insurance
and other financial services in 130 countries and territories.
VIACOM, INC.
1994 acquisitions of Paramount Communications and Blockbuster make
Viacom one of the world's leading entertainment companies.
MANNESMANN AG (GERMANY)
Manufactures steel tubes, machinery and auto components and engages
in industrial plant engineering. Mannesmann also operates Germany's
second private mobile phone network.
CHRYSLER CORP.*
One of the "Big Three" U.S. automobile manufacturers with expanded
lineups of subcompact and mid-sized cars and light trucks.
SEARS ROEBUCK & CO.
Large retailer benefiting from restructuring, has gained market share in
home appliances, electronics and apparel.
MOTOROLA, INC.
One of the leading suppliers of semiconductors, paging equipment and
cellular mobile telecommunications systems. Also produces government
and industrial electronics and automotive equipment.
*Includes convertibles
A-8
GLOBAL PORTFOLIO
Ronald Simcoe
Vice President
Mr. Simcoe has managed the
Global Portfolio since 1988.
International stock markets generally outperformed the U.S. again in 1994. For
the twelve months through December 31, 1994, Japan, the largest and most
important market, rose 21% for the year ended 1994, but more than half of this
gain was from currency appreciation. Major European markets returned 2%, but
only with the aid of currency gains, which averaged 9%. Strong local
performance was provided by Scandinavia and other small European markets and by
individual Latin American markets. Most developing country markets suffered
major declines as repeated interest hikes by the U.S. Federal Reserve impacted
capital inflows.
The Global Portfolio modestly outperformed the unmanaged MSCI World Index.
This was primarily because of stock selection in the U.S. and Japan, as well
as solid representation in the strongly performing smaller markets of Europe
and Latin America.
Japanese stock selection continues to emphasize global leaders in electronic
and cellular technology, consumer electronics and capital goods. European
stock selection favors capital goods, basic materials and cellular and media
stocks. In the U.S., we favor technology, automobiles and real estate
investment trusts.
We expect to rebuild the Portfolio's investment positions in developing markets
in 1995 once the peak in global interest rates becomes more discernible.
Please refer to the prospectus for a description of the risks involved in
international investing, including currency, economic and political risks, as
well as differences in accounting.
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INVESTMENT OBJECTIVE
Long-term growth of capital
INVESTMENT POLICY
Primarily equity securities of non-United States companies
as well as United States issuers
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $421.7 million
Number of Issues 394
Number of Countries Represented 34
DISTRIBUTION OF EQUITY INVESTMENTS BY COUNTRY
France 1.9%
Germany 3.5%
Ireland 1.5%
Italy 1.7%
Japan 25.5%
Netherland 4.5%
Singapore 1.5%
United Kingdom 8.1%
United States 35.5%
Other 16.3%
LARGEST INTERNATIONAL EQUITY HOLDINGS
POWERGEN PLC
One of the two oligopolist producers of electric power in Great
Britain.
FILTRONIC COMTEK PLC
Major British producer of cellular telephone infrastructure
components.
BRITISH STEEL
Dominant producer of steel in the United Kingdom and a major
steel exporter to Europe.
MANNESMANN AG (GERMANY)
Manufactures steel tubes, machinery and auto components and
engages in industrial plant engineering. Mannesmann also
operates Germany's second private mobile phone network.
ROHM CO., LTD.
Japanese producer of custom-designed semiconductors.
AKZO NOBEL N.V.
Dutch producer of commodity petrochemicals and table salt.
A-9
AGGRESSIVE STOCK PORTFOLIO
Alden Stewart
Executive Vice President
Mr. Stewart has co-managed
the Aggressive Stock Portfolio
since 1993.
Randall Haase
Vice President
Mr. Haase has co-managed
this Portfolio since 1993.
While the Aggressive Stock Portfolio outperformed its market benchmark during
the second half of 1994, it underperformed for the full twelve months. During
the first half of 1994, the Portfolio declined due primarily to its weightings
in small-cap stocks and mid-size cyclicals, which were out of favor. We were
able to offset the majority of the poor first half performance during the
second half of 1994 when market strength returned to the growth areas of the
market. We ended the year with approximately 76 names in the Portfolio.
This reflected a deliberate effort to reduce the number of holdings while
emphasizing those stocks with the most potential.
In 1994, we increased our focus on media, energy, specialty retail and health
care stocks for their long-term prospects. After the merger between Viacom and
Blockbuster Entertainment, Viacom became the Portfolio's largest position.
Mellon Bank's acquisition of Dreyfus Corporation helped performance and is the
Portfolio's fourth largest position. Lastly, while the abnormally warm winter
has put near-term pressure on energy holdings, we continue to add to positions
in the oil service sector. We continue to be excited about the prospects for
natural gas over the next several years.
New positions in the Portfolio emphasize what we consider to be well-managed
companies growing their franchises. These include Tommy Hilfiger in the
specialty retail sector and Boston Scientific in the health care sector. Each
of these companies is in the top twenty-five holdings of the portfolio. Over
the long term, we believe these companies offer excellent growth prospects.
Despite weak retail sales for December, the strength in the economy may lead to
another interest rate increase early in 1995. Either way, we remain focused on
small- to medium-sized growth companies that continue to build their franchises
and that can expand market share in their respective industries.
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INVESTMENT OBJECTIVE
Long-term growth of capital
INVESTMENT POLICY
Primarily common stocks and other equity-type securities
issued by quality small- and intermediate-sized companies
with strong growth prospects and in covered options on
those securities
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $1.8 billion
Number of Issues 76
ASSET MIX DISTRIBUTION
Common Stock 96.3%
Short-Term and Cash 3.7%
LARGEST HOLDINGS
VIACOM, INC.
1994 acquisitions of Paramount Communications and Blockbuster
make Viacom one of the world's leading entertainment companies.
CUC INTERNATIONAL, INC.
Provides consumers with access to various services, such as discount
shopping and travel. The company is creating an interactive home
shopping service in conjunction with Time Warner and Viacom.
CNA FINANCIAL CORP.
One of the largest property-casualty and life insurers in the United States.
MELLON BANK CORP.
Bank holding company based in Pittsburgh; in 1993 it acquired The
Boston Co. and, in 1994, The Dreyfus Corp.
MANNESMANN AG (GERMANY)
Manufactures steel tubes, machinery and auto components and engages
in industrial plant engineering. Mannesmann also operates Germany's
second private mobile phone network.
SENSORMATIC ELECTRONICS CORP.
Makes and services video surveillance equipment and electronics used as
theft deterrents in retail stores and other places.
A-10
ASSET ALLOCATION SERIES: CONSERVATIVE INVESTORS PORTFOLIO
Franklin Kennedy
Senior Vice President
Mr. Kennedy has managed
the Conservative Investors and
Growth Investors Portfolios since
their inception.
During 1994, the U.S. bond market experienced its first negative return in more
than 20 years. Because of its equity diversification during the year, the
Portfolio was less negatively affected than had it been a pure fixed income
portfolio. For the twelve-month period, the Conservative Investors Portfolio
and its market benchmark both posted negative total returns.
Our outlook for 1995 is somewhat more positive. The Federal Reserve is
expected to raise interest rates enough to slow the U.S. economy's growth to a
non-inflationary rate before inflation accelerates. If the Fed succeeds, as we
believe it will, current yields on high-quality bonds, already very high
relative to the current inflation rate, will be more attractive. Interest
rates would hit a cyclical peak during the year, and in addition to earning a
bond's stated rate of interest, this would offer the opportunity to capture
price appreciation as rates decline. We will seek to extend the average
maturity of the Portfolio's bond holdings as signs of a slowing economy appear.
Our view of the equity market is more problematic. The economic slowdown that
we are expecting may well produce a decline in corporate profits. With the
stock market very close to its all-time high, this is likely to negatively
affect the market to some degree. Therefore, we intend to keep equity exposure
at a relatively low range, currently about 12% of the Portfolio.
The longer-term outlook for the financial markets continues to be attractive.
Low inflation, reduced government regulation of business and advances in
technology could all contribute to a very good investment outlook beyond 1995.
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INVESTMENT OBJECTIVE
High total return without, in the investment adviser's
opinion, undue risk to principal
INVESTMENT POLICY
Diversified mix of publicly traded equity and debt securities
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $173.7 million
Number of Issues 56
Average Quality* AA+
ASSET MIX DISTRIBUTION
Common Stock 10.7%
Bonds 45.9%
Short-Term and Cash 43.4%
LARGEST EQUITY HOLDINGS
GENERAL ELECTRIC CO.
GE's business products include aircraft engines, appliances and broad-
casting, lighting and financial services.
GILLETTE CORP.
The leading company in razors and blades with over 60% of the domestic
market, along with important market positions in toiletries, writing
instruments and small appliances.
PHILIP MORRIS COS., INC.
The largest cigarette company in the U.S. (Marlboro), second-largest
brewer (Miller Brewing Co.) and largest U.S. food processor (Kraft
General Foods, Inc.)
BANK OF NEW YORK CO.
This large New York-based commercial bank has expanded regionally
by acquiring local and suburban banks and is a growing presence in
retail-oriented banking.
CATERPILLAR, INC.
The largest manufacturer of earthmoving machinery, accounting for
over 75% of sales and earnings and also a major producer of diesel and
natural gas engines and turbines.
HERCULES, INC.
A diversified company with interests in specialty chemicals and materials,
including paper chemicals, polypropylene fibers and solid fuel systems.
We vary the portion of assets invested in each type of security in accordance
with our evaluation of economic conditions, the general level of common stock
prices, anticipated interest rates and other relevant considerations.
* The Average Quality represents a weighted average of the Portfolio's fixed
income holdings, excluding cash, using the Standard & Poor's rating scale.
A-11
ASSET ALLOCATION SERIES: BALANCED PORTFOLIO
Judith Taylor
Senior Vice President
Ms. Taylor has managed the
Balanced Portfolio since 1988.
In a very difficult year for financial markets, the Balanced Portfolio had a
negative return in 1994 and significantly underperformed its benchmark. For
the same period, the unmanaged Lehman Government/Corporate Bond Index posted
the worst return for the bond market since 1927. This negative return was
triggered by an economy that continued to grow at a robust pace despite the
Federal Reserve's six increases in short-term interest rates. A healthy cash
position and investments in high-quality Treasury bonds helped the Portfolio
avoid losses in its fixed income holdings.
Although the unmanaged S&P 500 Index returned 1.32% (with dividends) for the
year, the average total return for the general universe of 7,000 stocks was
- - -7.78%. Medium-capitalization growth stocks in particular underperformed, even
though their fundamentals remained strong. Areas that particularly hurt the
Portfolio were cyclical growth stocks such as retailers, railroads and
restaurants. These sectors came under pressure with the strengthening economy
and the increase in short-term interest rates.
We repositioned the consumer segment of the equity component of the Portfolio
late in the year. Some of the emphasis was moved from cyclical growth areas
like home furnishings to more stable consumer demand areas. We also continued
to add to positions in the more defensive energy sector.
Looking ahead to 1995, higher short-term interest rates should begin to slow
economic growth. Fundamentals should become more important and allow growth
stocks to perform better in a slowing economy.
As of December 31, 1994, the Portfolio's asset mix was conservative. We
anticipate reinvesting the cash when the Federal Reserve relaxes its stance on
interest rate increases.
Please refer to the prospectus for a description of the risks involved in
international investing, including currency, economic and political risks, as
well as differences in accounting.
- - -------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
High return through both appreciation of capital and
current income
INVESTMENT POLICY
Diversified portfolio of publicly traded equity and debt
securities and short-term money market instruments
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $1.3 billion
Number of Equity Issues 64
Average Quality* AAA
Average Maturity 8.5 years
ASSET MIX DISTRIBUTION
Common Stock 54.1%
Convertibles 1.9%
Bonds 13.0%
Short-Term and Cash 31.0%
LARGEST EQUITY HOLDINGS
SENSORMATIC ELECTRONICS CORP.
Makes and services video surveillance equipment and electronics used
as theft deterrents in retail stores and other places.
ILLINOIS CENTRAL CORP.
Midwestern railroad carrying chemicals, coal, grain products and autos
and is scheduled to open a new bulk transfer facility in 1995.
THERMO INSTRUMENT SYSTEMS, INC.
The largest environmental instrument manufacturer worldwide, and
the third largest analytical instrument manufacturer.
GENERAL INSTRUMENT CORP.**
Leading supplier of systems and equipment for the cable and satellite
television industry and a leading manufacturer of components for the
telecommunications industry.
MERCK & CO., INC.
The largest pharmaceutical company in the world. Recently entered the
managed care market through the acquisition of Medco Containment
Systems, the leading mail-order drug marketer in the U.S.
GAYLORD ENTERTAINMENT CO.
Diversified communications and entertainment company which owns
the Opryland complex in Nashville, along with several TV, cable and
radio stations.
We vary the portion of assets invested in each type of security in accordance
with our evaluation of economic conditions, the general level of common stock
prices, anticipated interest rates and other relevant considerations.
* The Average Quality represents a weighted average of the Portfolio's fixed
income holdings, excluding cash, using the Standard & Poor's rating scale.
** Includes convertibles
A-12
ASSET ALLOCATION SERIES: GROWTH INVESTORS PORTFOLIO
Franklin Kennedy
Senior Vice President
Mr. Kennedy has managed
the Conservative Investors and
Growth Investors Portfolios since
their inception.
The Growth Investors Portfolio and its market benchmark both had negative
returns in 1994. Although the unmanaged S&P 500 rose 1.32% in the period,
there was a large gap between its performance and that of the typical stock.
Also, negative returns in the U.S. bond market represented its first overall
decline in more than 20 years. The Portfolio's exposure to better-performing
international markets did help to offset weak performance in the U.S. markets.
The economy is continuing to grow and a further increase in short-term rates is
likely. This will put pressure on long-term investments, the economy and the
financial system, but the timing and magnitude of the impact are uncertain.
This is an environment where active management of asset mix can help
performance. In the context of the Portfolio's established ranges, the year
ended with a normal exposure to fixed income securities. We perceive excellent
value in fixed income investments and believe a positive turn will arrive
sooner in the bond market than the equity market. The Portfolio has below-
normal exposure to stocks. The stock market is still very close to its all-
time high and will be vulnerable during 1995 to a combination of high interest
rates and declining profit growth.
Beyond the current interest rate cycle, our outlook is more optimistic. Low
inflation, reduced government regulation of business and advances in technology
could contribute to a very good investment outlook beyond 1995. We are
maintaining above-average cash reserves to respond to longer-term opportunities
that may develop during the year.
Please refer to the prospectus for a description of the risks involved in
international investing, including currency, economic and political risks, as
well as differences in accounting.
- - -------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Highest total return consistent with the investment adviser's
determination of reasonable risk
INVESTMENT POLICY
Diversified mix of publicly traded equity and fixed income
securities, including at times common stocks appropriate for
investment by the Aggressive Stock Portfolio and at times fixed
income securities appropriate for the High Yield Portfolio.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1994
Net Assets $492.5 million
Number of Issues 374
Average Quality* AA+
ASSET MIX DISTRIBUTION
Common Stock 40.1%
International Stock 7.7%
Preferred Stock 0.2%
Convertibles 1.1%
Bonds 14.3%
High Yield Bonds 5.0%
Short-Term and Cash 31.6%
LARGEST EQUITY HOLDINGS
GILLETTE CORP.
The leading company in razors and blades with over 60% of the
domestic market, along with important market positions in toiletries,
writing instruments and small appliances.
PHILIP MORRIS COS., INC.
The largest cigarette company in the U.S. (Marlboro), second-largest
brewer (Miller Brewing Co.) and largest U.S. food processor (Kraft
General Foods, Inc.)
BANK OF NEW YORK CO.
This large New York-based commercial bank has expanded regionally
by acquiring local and suburban banks and is a growing presence in
retail-oriented banking.
CATERPILLAR, INC.
The largest manufacturer of earthmoving machinery, accounting for
over 75% of sales and earnings, and also a major producer of diesel
and natural gas engines and turbines.
GENERAL ELECTRIC CO.
GE's business products include aircraft engines, appliances and
broadcasting, lighting and financial services.
MOTOROLA, INC.
One of the leading suppliers of semiconductors, paging equipment and
cellular mobile telecommunications systems. Also produces
government and industrial electronics and automotive equipment.
We vary the portion of assets invested in each type of security in accordance
with our evaluation of economic conditions, the general level of common stock
prices, anticipated interest rates and other relevant considerations.
* The Average Quality represents a weighted average of the Portfolio's fixed
income holdings, excluding cash, using the Standard & Poor's rating scale.
A-13
HUDSON RIVER TRUST
NOTES ON PERFORMANCE
The chart on the next page shows the performance of The Hudson River Trust
Portfolios together with comparative benchmarks, including both unmanaged
market indices and universes of managed portfolios. The Portfolios' annualized
net rates of return are based on the percentage change in the net asset value
with dividends and capital gains reinvested. Returns are net of investment
management fees and expenses of the Trust. These rates are not representative
of the actual return you would receive under a policy. No policyowner can
invest directly in the Trust. Changes in policy values depend not only on the
investment performance of the Trust, but also on the insurance and
administrative charges, applicable sales charges and the mortality and expense
risk charge applicable under a policy. These policy charges effectively reduce
the dollar amount of any net gains and increase the dollar amount of any net
losses. All performance shown is annualized, unless otherwise noted.
- - -------------------------------------------------------------------------------
THE BENCHMARKS
Market indices are not subject to any charges for investment advisory fees
typically associated with a managed portfolio. Comparisons with these
benchmarks, therefore, are of limited use. We include them because they are
widely known and may help you to understand the universe of securities from
which each Portfolio is likely to select its holdings.
PORTFOLIO INCEPTION DATES AND COMPARATIVE BENCHMARKS:
MONEY MARKET: July 13, 1981; Salomon Brothers Three-Month T-Bill Index (3-Month
T-Bill).
INTERMEDIATE GOVERNMENT SECURITIES: April 1, 1991; Lehman Intermediate
Government Bond Index (Lehman Intermediate Gov't).
QUALITY BOND: October 1, 1993; Lehman Aggregate Bond Index (Lehman Aggregate).
HIGH YIELD: January 2, 1987; Merrill Lynch High Yield Master Index (Merrill
Lynch High Yield).
GROWTH & INCOME: October 1, 1993; 25% Value Line Convertibles Index and 75%
Standard & Poor's 500 Index (25% Value Line Conv./75% S&P 500).
EQUITY INDEX: March 1, 1994; S&P 500.
COMMON STOCK: January 13, 1976; S&P 500.
GLOBAL: August 27, 1987; Morgan Stanley Capital International World Index (MSCI
World).
AGGRESSIVE STOCK: January 27, 1986; 50% S&P 500 and 50% National Association of
Securities Dealers Automated Quotation System Composite (50% S&P 500/50%
NASDAQ).
CONSERVATIVE INVESTORS: October 2, 1989; 70% Lehman Treasury Bond Composite
Index and 30% S&P 500 (70% Lehman Treas./30% S&P 500).
BALANCED: January 27, 1986; 50% Lehman Government/Corporate Bond Index and 50%
S&P 500 (50% Lehman Corp./50% S&P 500).
GROWTH INVESTORS: October 2, 1989; 30% Lehman Government/Corporate Bond Index
and 70% S&P 500 (30% Lehman Corp./70% S&P 500).
The S&P 500 benchmark includes reinvested dividends. The Lipper Mutual Funds
Survey (Lipper) records the performance of over 7000 mutual funds. According to
Lipper Analytical Services, Inc., the data are presented net of investment
management fees, direct operating expenses, and, for funds with Rule 12b-1
plans, asset-based sales charges. Lipper data provide a more accurate picture
of Trust performance relative to other funds underlying life insurance products
than the market indices.
A-14
HUDSON RIVER TRUST
ANNUALIZED RATES OF RETURN FOR PERIODS ENDING DECEMBER 31, 1994
<TABLE>
<CAPTION>
One Three Five Ten Twenty Since
Portfolio Year Years Years Years Years Inception
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET 4.02% 3.51% 4.98% 6.27% -- 7.54%
Lipper Money Market 3.65 3.19 4.59 5.89 -- 7.22
3-Month T-Bill 4.22 3.63 4.90 5.98 -- 7.19
INTERMEDIATE GOV'T SECURITIES (4.37) 3.75 -- -- -- 6.16
Lipper Intermediate Government (3.72) 3.51 -- -- -- 5.93
Lehman Intermediate Government (1.75) 4.36 -- -- -- 6.55
QUALITY BOND (5.10) -- -- -- -- (4.49)
Lipper Corporate Debt A-Rated (4.64) -- -- -- -- (4.00)
Lehman Aggregate (2.92) -- -- -- -- (2.30)
HIGH YIELD (2.79) 10.37 10.60 -- -- 9.04
Lipper High Yield (3.83) 10.44 10.62 -- -- 8.13
Merrill Lynch High Yield (1.16) 11.03 11.99 -- -- 10.24
GROWTH & INCOME (0.58) -- -- -- -- (0.66)
Lipper Growth & Income (0.94) -- -- -- -- 1.03
25% Value Line Conv./75% S&P 500 0.01 -- -- -- -- 1.84
EQUITY INDEX -- -- -- -- -- 1.08*
Lipper S&P 500 Index Avg. -- -- -- -- -- 0.43*
S&P 500 -- -- -- -- -- 1.28*
COMMON STOCK (2.14) 8.03 9.82 15.25 15.32% 13.91
Lipper Growth Equity (2.15) 5.64 8.88 12.99 13.77 14.68
S&P 500 1.32 6.25 8.68 14.38 14.50 13.12
GLOBAL 5.23 11.42 11.15 -- -- 10.39
Lipper Global (3.03) 8.27 6.05 -- -- 5.99
MSCI World 5.08 6.85 3.67 -- -- 4.97
AGGRESSIVE STOCK (3.81) 2.84 17.06 -- -- 18.78
Lipper Small Company Growth (0.73) 9.93 12.29 -- -- 11.79
50% S&P 500/50% NASDAQ (0.94) 7.46 9.65 -- -- 11.41
THE ASSET ALLOCATION SERIES:
CONSERVATIVE INVESTORS (4.10) 3.97 7.46 -- -- 7.71
Lipper Flexible Portfolio (2.65) 5.82 8.33 -- -- 7.71
70% Lehman Treas./30% S&P 500 (1.97) 5.14 7.85 -- -- 8.11
BALANCED (8.02) 0.12 7.29 -- -- 11.25
Lipper Balanced (2.52) 5.27 7.87 -- -- 9.91
50% Lehman Corp./50% S&P 500 (1.09) 5.55 8.20 -- -- 10.96
GROWTH INVESTORS (3.15) 5.42 14.05 -- -- 14.19
Lipper Flexible Portfolio (2.65) 5.82 8.33 -- -- 7.71
30% Lehman Corp./70% S&P 500 (0.13) 5.83 8.39 -- -- 8.49
</TABLE>
*Unannualized
Benchmark notes are found on the following page
- - -------------------------------------------------------------------------------
Each of the Trust's Portfolios has a different investment objective it seeks to
achieve by following a separate investment policy*. There is no guarantee that
these objectives will be attained. The objectives and policies of each Portfolio
will affect its return and its risks. Contract values may increase or decrease
with investment experience, and reflect certain contract charges and deductions.
Keep in mind as you review past performance that it is no estimate or indication
of future results. Neither the Money Market Portfolio nor the Intermediate
Government Securities Portfolio is guaranteed or insured by the U.S. Government.
*Not all Portfolios are available in all separate accounts.
A-15
HUDSON RIVER TRUST
GROWTH OF A $10,000 INVESTMENT
The charts shown in these pages illustrate the total value of an assumed
investment in each portfolio of the Hudson River Trust, except the Money Market
Portfolio and Equity Index Portfolio. The periods illustrated are from the
inception dates shown for each portfolio through December 31, 1994 (for the
Common Stock Portfolio, for the ten years ended December 31, 1994). The results
assume the reinvestment of dividends and capital gains. Results should not be
considered representative of future gains or losses.
The total value shown for the Hudson River Trust Portfolios reflects management
fees and operating expenses of the portfolio only. They have not been adjusted
for charges and expenses associated with life insurance policies or annuity
contracts. Rates of return on insurance policies and annuity contracts will be
lower because of the deduction of contract-related charges.
Information on these pages constitutes part of the annual report of The Hudson
River Trust and is not intended for separate use.
A table of rates of return for the Hudson River Trust Portfolios and their
comparative benchmarks, as well as additional information regarding the
benchmarks, can be found on the two previous pages of this report.
GROWTH OF A $10,000 INVESTMENT
AS OF DECEMBER 31, 1994
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
INVESTED ON APRIL 1, 1991 (Inception)
Intermediate Lehman Lipper
Government Intermediate Intermediate
Securities Government Government
---------- ------------ ------------
4/ 1/91 10000 10000 10000
12/31/91 11208 11165 11242
12/31/92 11835 11939 11924
12/31/93 13088 12914 12909
12/31/94 12515 12688 12429
QUALITY BOND PORTFOLIO
INVESTED ON OCTOBER 1, 1993 (Inception)
Quality Lehman Lipper Corp.
Bond Aggregate Debt A Rated
-------- --------- ------------
10/ 1/93 10000 10000 10000
12/31/93 9949 10006 9963
12/31/94 9442 9776 9564
A-16
HUDSON RIVER TRUST
GROWTH OF A $10,000 INVESTMENT
AS OF DECEMBER 31, 1994
HIGH YIELD PORTFOLIO
INVESTED ON JANUARY 2, 1987 (Inception)
High Merrill Lynch Lipper
Yield High Yield High Yield
----- ---------- ----------
1/ 2/87 10000 10000 10000
12/31/87 10468 10466 10142
12/31/88 11488 11876 11404
12/31/89 12078 12378 11303
12/31/90 11944 11840 10051
12/31/91 14867 15931 13705
12/31/92 16698 18826 16130
12/31/93 20564 22062 19235
12/31/94 19993 21807 18498
GROWTH & INCOME PORTFOLIO
INVESTED ON OCTOBER 1, 1993 (Inception)
Lipper
Growth & Growth & 75% S&P 500/
Income S&P 500 Income 25% Value Line Conv.
-------- ------- ------- --------------------
10/ 1/93 10000 10000 10000 10000
12/31/93 9974 10231 10225 10118
12/31/94 9917 10370 10330 9869
COMMON STOCK PORTFOLIO
INVESTED ON JANUARY 1, 1985 (Ten Years Ago)
Lipper
Common Growth
Stock S&P 500 Equity
-------- ------- -------
1/ 1/85 10000 10000 10000
12/31/85 13341 13164 12753
12/31/86 15655 15615 14416
12/31/87 16828 16424 14575
12/31/88 20603 19133 16609
12/31/89 25876 25177 20835
12/31/90 23779 24393 19693
12/31/91 32788 31793 26784
12/31/92 33838 34212 28871
12/31/93 42244 37645 31934
12/31/94 41339 38156 31247
A-17
HUDSON RIVER TRUST
GROWTH OF A $10,000 INVESTMENT
AS OF DECEMBER 31, 1994
GLOBAL PORTFOLIO
INVESTED ON AUGUST 27, 1987 (Inception)
MSCI Lipper
Global World Global
-------- ------- -------
8/27/87 10000 10000 10000
12/31/87 8673 8247 8103
12/31/88 9617 9994 9192
12/31/89 12188 11468 11189
12/31/90 11448 9329 10012
12/31/91 14946 10822 11968
12/31/92 14873 10049 11935
12/31/93 19645 12098 15640
12/31/94 20673 12504 15166
AGGRESSIVE STOCK PORTFOLIO
INVESTED ON JANUARY 27, 1986 (Inception)
Aggressive 50% S&P 500/ Lipper Small
Stock S&P 500 50% NASDAQ Company Growth
------ ------- ---------- -------------
1/27/86 10000 10000 10000 10000
12/31/86 13588 11862 11097 10564
12/31/87 14580 12476 11089 9939
12/31/88 14746 14534 12862 11824
12/31/89 21160 19125 16138 14540
12/31/90 22888 18530 14452 13102
12/31/91 42769 24151 20762 19859
12/31/92 41413 25988 23158 22349
12/31/93 48356 28596 26025 26133
12/31/94 46510 28984 25780 25942
CONSERVATIVE INVESTORS PORTFOLIO
INVESTED ON OCTOBER 2, 1989 (Inception)
Conservative Lehman 70% Lehman Treasury/ Lipper
Investors Treasury 30% S&P 500 Flexible
----------- -------- ------------------ --------
10/ 2/89 10000 10000 10000 10000
12/31/89 10309 10380 10328 10074
12/31/90 10969 11266 10850 9981
12/31/91 13144 12989 13002 12441
12/31/92 13905 13926 13955 13375
12/31/93 15402 15413 15418 14972
12/31/94 14772 14892 15114 14575
A-18
HUDSON RIVER TRUST
GROWTH OF A $10,000 INVESTMENT
AS OF DECEMBER 31, 1994
BALANCED PORTFOLIO
INVESTED ON JANUARY 27, 1986 (Inception)
50% S&P 500/ Lipper
Balanced S&P 500 50% Lehman Corp. Balanced
-------- ------- ---------------- --------
1/27/86 10000 10000 10000 10000
12/31/86 12907 11834 11646 11722
12/31/87 12796 12447 12086 12022
12/31/88 14494 14500 13545 13371
12/31/89 18239 19080 16655 15968
12/31/90 18282 18486 17086 15934
12/31/91 25826 24094 21067 20069
12/31/92 25100 25927 22669 21508
12/31/93 28183 28528 25053 23816
12/31/94 25922 28916 24780 23216
GROWTH INVESTORS PORTFOLIO
INVESTED ON OCTOBER 2, 1989 (Inception)
Growth 30% Lehman Corp./ Lipper
Investors S&P 500 70% S&P 500 Flexible
--------- ------- ---------------- ---------
10/ 2/89 10000 10000 10000 10000
12/31/89 10399 10204 10253 10074
12/31/90 11502 9886 10285 9981
12/31/91 17128 12885 12976 12441
12/31/92 17973 13865 13964 13375
12/31/93 20716 15256 15405 14972
12/31/94 20064 15463 15385 14575
A-19
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1994
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at value (Cost:
Money Market Portfolio--$292,100,623;
Intermediate Government Securities
Portfolio--$44,352,222;
Quality Bond Portfolio--$132,724,283;
High Yield Portfolio--$76,923,394;
Balanced Portfolio--$1,341,079,638;
Growth and Income Portfolio--$32,144,919;
Equity Index Portfolio--$37,105,987;
Common Stock Portfolio--$3,306,081,825;
Global Portfolio--$409,862,422;
Aggressive Stock Portfolio--$1,574,401,795;
Conservative Investors Portfolio--$175,014,438;
Growth Investors Portfolio--$481,206,882) (Notes 1 and
3) ................................................. $292,120,778 $ 43,420,194 $126,547,025 $72,910,447
Cash ................................................... -- 3,840 24,217 2,482,454
Foreign cash ........................................... -- -- -- --
Receivable for securities sold ......................... -- 4,806,214 -- --
Receivable from Separate Accounts for Trust shares sold 33,051,117 138,278 54,300 215,843
Dividends, interest and other receivables .............. 518,659 181,443 1,025,940 1,895,068
-------------- -------------- -------------- -------------
Total assets ........................................ 325,690,554 48,549,969 127,651,482 77,503,812
-------------- -------------- -------------- -------------
LIABILITIES:
Options written at value (Premiums received: Common
Stock Portfolio--$4,512,479) (Notes 1 and 3) ......... -- -- -- --
Payable to custodian ................................... 165,714 -- -- --
Payable for securities purchased ....................... -- -- -- 3,564,750
Payable to Separate Accounts for Trust shares redeemed -- -- -- --
Unrealized depreciation of forward currency contracts
(Notes 1 and 3) ...................................... -- -- -- --
Investment advisory fees payable ....................... 94,118 19,869 57,764 32,737
Trustees' fees payable ................................. 17,752 3,387 695 2,279
Accrued expenses ....................................... 21,974 8,849 17,554 9,417
-------------- -------------- -------------- -------------
Total liabilities ................................... 299,558 32,105 76,013 3,609,183
-------------- -------------- -------------- -------------
NET ASSETS ............................................. $325,390,996 $ 48,517,864 $127,575,469 $73,894,629
============== ============== ============== =============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ...................................... $325,385,472 $ 59,892,365 $143,140,240 $79,676,355
Accumulated undistributed (overdistributed) net
investment income .................................. (14,631) (3,387) 683,882 (6,358)
Accumulated net realized loss ........................ -- (10,439,086) (10,071,395) (1,762,421)
Unrealized appreciation (depreciation) of investments
and foreign currency denominated assets and
liabilities ........................................ 20,155 (932,028) (6,177,258) (4,012,947)
-------------- -------------- -------------- -------------
NET ASSETS ............................................. $325,390,996 $ 48,517,864 $127,575,469 $73,894,629
============== ============== ============== =============
Shares outstanding (Note 4) ............................ 32,095,980 5,471,948 14,634,796 8,292,776
============== ============== ============== =============
Net asset value, offering and redemption
price per share (Note 1) .............................. $ 10.14 $ 8.87 $ 8.72 $ 8.91
============== ============== ============== =============
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
GROWTH AND AGGRESSIVE CONSERVATIVE GROWTH
BALANCED INCOME EQUITY INDEX COMMON STOCK GLOBAL STOCK INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$1,317,168,946 $31,904,867 $36,671,027 $3,448,933,932 $413,049,268 $1,824,867,284 $173,304,521 $484,679,989
28,941 10,767 10,285 791,300 2,679,160 6,397,293 -- 1,835,976
-- -- -- 21,165 3,874,659 -- -- 1,147,515
4,347,633 264,619 -- 21,904,373 4,032,588 6,485,362 74,858 3,812,138
2,667,957 658,336 1,678 8,468,218 3,057,021 -- 228,980 2,608,621
6,946,331 112,111 97,284 10,210,345 516,437 407,876 877,467 2,286,229
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
1,331,159,808 32,950,700 36,780,274 3,490,329,333 427,209,133 1,838,157,815 174,485,826 496,370,468
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
-- -- -- 3,724,900 -- -- -- --
-- -- -- -- -- -- 683,963 --
847,976 1,398,459 -- 18,963,737 4,851,870 2,921,828 -- 3,516,442
-- -- -- -- -- 2,223,640 -- --
-- -- -- -- 312,724 -- -- 54,822
401,320 13,035 10,190 1,007,126 179,403 675,903 77,703 211,986
25,315 70 113 98,704 2,684 23,162 1,524 3,602
65,585 16,765 21,763 290,005 164,169 149,002 31,326 106,067
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
1,340,196 1,428,329 32,066 24,084,472 5,510,850 5,993,535 794,516 3,892,919
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
$1,329,819,612 $31,522,371 $36,748,208 $3,466,244,861 $421,698,283 $1,832,164,280 $173,691,310 $492,477,549
============== ============= ============== ============== ============== ============== ============== ==============
$1,377,713,488 $32,182,728 $37,230,298 $3,334,534,285 $419,535,121 $1,632,506,050 $185,117,902 $497,121,365
(26,573) (69) (113) 3,552,516 215,631 12,105 (1,522) 146,879
(23,956,611) (420,236) (47,017) (15,481,358) (923,706) (50,819,364) (9,715,153) (8,208,832)
(23,910,692) (240,052) (434,960) 143,639,418 2,871,237 250,465,489 (1,709,917) 3,418,137
- - -------------- ------------- -------------- -------------- -------------- -------------- -------------- --------------
$1,329,819,612 $31,522,371 $36,748,208 $3,466,244,861 $421,698,283 $1,832,164,280 $173,691,310 $492,477,549
============== ============= ============== ============== ============== ============== ============== ==============
89,448,391 3,251,126 3,723,880 259,461,555 30,411,710 59,811,998 17,113,999 33,600,588
============== ============= ============== ============== ============== ============== ============== ==============
$ 14.87 $ 9.70 $ 9.87 $ 13.36 $ 13.87 $ 30.63 $ 10.15 $ 14.66
============== ============= ============== ============== ============== ============== ============== ==============
</TABLE>
2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Year Ended December 31, 1994
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income** (Note 1):
Dividends (including $4,959,800 and $30,507 from
affiliated companies for the Common Stock and
Aggressive Stock Portfolios, respectively) ..... $ -- $ -- $ 312,613 $ 37,004
Interest ......................................... 12,613,523 7,673,643 9,119,837 6,675,273
-------------- -------------- -------------- -------------
Total income .................................... 12,613,523 7,673,643 9,432,450 6,712,277
-------------- -------------- -------------- -------------
Expenses (Note 2):
Investment advisory fee .......................... 1,135,360 524,752 666,823 374,012
Custody fees ..................................... 26,289 17,045 17,064 25,943
Printing and mailing expenses .................... 3,410 1,510 1,482 836
Professional fees ................................ 16,252 36,215 9,777 7,607
SEC registration fees ............................ 9,901 -- 9,785 2,544
Trustees' fees ................................... 8,477 3,644 3,586 2,076
Miscellaneous .................................... 5,492 2,433 2,386 1,349
-------------- -------------- -------------- -------------
Total expenses .................................. 1,205,181 585,599 710,903 414,367
-------------- -------------- -------------- -------------
NET INVESTMENT INCOME ............................ 11,408,342 7,088,044 8,721,547 6,297,910
-------------- -------------- -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 AND 3):
Realized Gain (Loss):
On securities (including $1,063,551 and
$(64,555,581) from affiliated companies for the
Common Stock and Aggressive Stock Portfolios,
respectively) ................................... -- (10,439,086) (9,794,399) (1,709,091)
On options written ............................... -- -- -- --
On foreign currency transactions ................. -- -- (376,632) --
-------------- -------------- -------------- -------------
Realized gain (loss)--net ....................... -- (10,439,086) (10,171,031) (1,709,091)
-------------- -------------- -------------- -------------
Change in Unrealized Appreciation/Depreciation:
On securities .................................... (9,847) (2,940,993) (4,533,902) (6,485,505)
On options written ............................... -- -- -- --
On foreign currency transactions ................. -- -- -- --
-------------- -------------- -------------- -------------
Unrealized appreciation/depreciation--net ....... (9,847) (2,940,993) (4,533,902) (6,485,505)
-------------- -------------- -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ......... (9,847) (13,380,079) (14,704,933) (8,194,596)
-------------- -------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $11,398,495 $ (6,292,035) $ (5,983,386) $(1,896,686)
============== ============== ============== =============
<FN>
* For the Period from March 1, 1994 (Commencement of Operations) to
December 31, 1994.
** Net of foreign taxes withheld on dividends of $24,382, $4,589,
$1,347,683, $267,638, $107,123 and $64,523 for the Balanced, Equity
Index, Common Stock, Global, Aggressive Stock and Growth Investors
Portfolios, respectively, and on interest of $518 for the Global
Portfolio.
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
GROWTH AND CONSERVATIVE GROWTH
BALANCED INCOME EQUITY INDEX COMMON STOCK GLOBAL AGGRESSIVE INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO PORTFOLIO STOCK PORTFOLIO PORTFOLIO PORTFOLIO
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 11,848,552 $ 296,312 $ 745,647 $ 55,511,738 $ 3,291,522 $ 7,819,830 $ 385,532 $ 3,334,155
32,270,133 231,404 29,156 4,365,537 2,485,196 2,220,256 8,335,120 11,833,771
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
44,118,685 527,716 774,803 59,877,275 5,776,718 10,040,086 8,720,652 15,167,926
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
5,006,790 73,672 92,476 12,014,427 1,496,840 7,642,355 822,547 2,105,929
41,883 16,144 18,291 320,505 286,362 74,866 16,495 86,578
16,901 114 256 41,287 2,954 19,979 1,777 4,494
61,550 5,183 6,578 143,521 14,721 71,885 10,766 19,888
29,171 9,495 12,088 139,866 88,255 102,196 21,803 73,910
41,956 278 622 102,546 7,371 49,648 4,301 10,882
27,219 183 413 66,741 4,758 32,176 2,861 7,237
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
5,225,470 105,069 130,724 12,828,893 1,901,261 7,993,105 880,550 2,308,918
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
38,893,215 422,647 644,079 47,048,382 3,875,457 2,046,981 7,840,102 12,859,008
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
(18,710,641) (409,119) 110,383 136,828,879 8,116,643 (44,714,146) (9,714,278) (7,667,515)
-- -- -- 57,789,222 -- (12,446) -- --
-- -- -- (80,888) 141,065 -- -- 105,961
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
(18,710,641) (409,119) 110,383 194,537,213 8,257,708 (44,726,592) (9,714,278) (7,561,554)
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
(133,794,748) (250,229) (434,960) (325,019,251) (5,472,591) (7,375,377) (3,628,013) (17,183,742)
-- -- -- 7,902,160 -- (41,278) -- --
-- -- -- 133 (900,262) -- -- (217,398)
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
(133,794,748) (250,229) (434,960) (317,116,958) (6,372,853) (7,416,655) (3,628,013) (17,401,140)
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
(152,505,389) (659,348) (324,577) (122,579,745) 1,884,855 (52,143,247) (13,342,291) (24,962,694)
- - -------------- ------------ -------------- --------------- ------------- --------------- -------------- --------------
$(113,612,174) $(236,701) $ 319,502 $ (75,531,363) $ 5,760,312 $(50,096,266) $ (5,502,189) $(12,103,686)
============== ============ ============== =============== ============= =============== ============== ==============
</TABLE>
4
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
MONEY MARKET PORTFOLIO SECURITIES PORTFOLIO
-------------------------------- --------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1994 1993 1994 1993
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................. $ 11,408,342 $ 8,029,237 $ 7,088,044 $ 14,027,927
Realized gain (loss)--net ............................. -- -- (10,439,086) 14,315,307
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated assets
and liabilities--net ................................ (9,847) 43,630 (2,940,993) (405,824)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets from operations . 11,398,495 8,072,867 (6,292,035) 27,937,410
--------------- --------------- --------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Dividends from net investment income .................. (11,411,476) (8,038,768) (7,088,604) (15,670,469)
Dividends in excess of net investment income .......... -- -- -- --
Distributions from realized gains ..................... -- -- -- (12,378,067)
Distributions in excess of realized gains ............. -- -- -- --
Tax return of capital distributions ................... -- -- -- --
--------------- --------------- --------------- ---------------
Decrease in net assets from dividends and distributions (11,411,476) (8,038,768) (7,088,604) (28,048,536)
--------------- --------------- --------------- ---------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ........................................... 355,157,130 183,568,183 33,872,981 41,613,014
Shares issued in connection with the substitution of
the Short-Term World Income Portfolio ............... -- -- 2,582,814 --
Shares issued in reinvestment of dividends and
distributions ....................................... 11,411,476 8,038,768 7,088,604 28,048,536
Shares redeemed ....................................... (289,624,991) (211,765,184) (140,156,888) (204,626,298)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets derived from
share transactions .................................. 76,943,615 (20,158,233) (96,612,489) (134,964,748)
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS ....................... 76,930,634 (20,124,134) (109,993,128) (135,075,874)
NET ASSETS, BEGINNING OF PERIOD ......................... 248,460,362 268,584,496 158,510,992 293,586,866
--------------- --------------- --------------- ---------------
NET ASSETS, END OF PERIOD* .............................. $ 325,390,996 $ 248,460,362 $ 48,517,864 $ 158,510,992
=============== =============== =============== ===============
<FN>
* Including accumulated undistributed (overdistributed) net investment
income of $(14,631) and $(9,531) for the Money Market Portfolio and
$(3,387) and $(1,626,244) for the Intermediate Government Portfolio and
$683,882 and $4,973 for the Quality Bond Portfolio and $(6,358) and
$(7,794) for the High Yield Portfolio and $(26,573) and $1,783,854 for
the Balanced Portfolio and $(69) and $(2) for the Growth and Income
Portfolio, as of December 31, 1994 and December 31, 1993, respectively.
** Commencement of Operations.
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO BALANCED PORTFOLIO GROWTH AND INCOME PORTFOLIO
- - ------------------------------ ------------------------------ ------------------------------ ------------------------------
OCTOBER 1, OCTOBER 1,
YEAR ENDED 1993** TO YEAR ENDED 1993** TO
DECEMBER 31, DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1993 1994 1993 1994 1993 1994 1993
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
$8,721,547 $1,226,813 $6,297,910 $5,427,097 $38,893,215 $36,056,358 $422,647 $3,295
<S> <C> <C> <C> <C> <C> <C> <C>
(10,171,031) (117,287) (1,709,091) 3,774,041 (18,710,641) 73,049,628 (409,119) (11,117)
(4,533,902) (1,643,356) (6,485,505) 2,450,542 (133,794,748) 32,426,988 (250,229) 10,177
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(5,983,386) (533,830) (1,896,686) 11,651,680 (113,612,174) 141,532,974 (236,701) 2,355
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(7,694,742) (1,221,840) (6,297,910) (5,433,341) (38,893,215) (36,087,683) (422,714) (3,295)
-- -- (85,166) -- (2,417,748) -- -- (2)
-- -- -- (1,244,654) -- (73,049,628) -- --
-- (130,973) -- -- -- (2,537,264) -- --
(627,091) -- -- -- (202,506) -- -- (97)
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(8,321,833) (1,352,813) (6,383,076) (6,677,995) (41,513,469) (111,674,575) (422,714) (3,394)
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
33,996,457 106,082,587 30,003,628 31,092,722 163,763,699 198,602,703 31,788,696 1,475,225
-- -- -- -- -- -- -- --
8,321,833 1,352,813 6,383,076 6,677,995 41,513,469 111,674,575 422,714 3,394
(5,269,742) (716,617) (21,380,848) (23,262,567) (84,972,287) (52,165,797) (1,485,659) (21,545)
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
37,048,548 106,718,783 15,005,856 14,508,150 120,304,881 258,111,481 30,725,751 1,457,074
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
22,743,329 104,832,140 6,726,094 19,481,835 (34,820,762) 287,969,880 30,066,336 1,456,035
104,832,140 -- 67,168,535 47,686,700 1,364,640,374 1,076,670,494 1,456,035 --
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
$127,575,469 $104,832,140 $ 73,894,629 $ 67,168,535 $1,329,819,612 $1,364,640,374 $31,522,371 $1,456,035
============== ============== ============== ============== ============== ============== ============== ==============
</TABLE>
6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
EQUITY INDEX
PORTFOLIO COMMON STOCK PORTFOLIO
--------------- -------------------------------
MARCH 1, 1994**
TO DECEMBER 31, YEAR ENDED DECEMBER 31,
1994 1994 1993
--------------- -------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ......................................... $ 644,079 $ 47,048,382 $ 41,916,629
Realized gain (loss)--net ..................................... 110,383 194,537,213 370,949,140
Change in unrealized appreciation/depreciation of investments
and foreign currency denominated assets and liabilities--net (434,960) (317,116,958) 190,072,427
--------------- -------------- ---------------
Net increase (decrease) in net assets from operations ......... 319,502 (75,531,363) 602,938,196
--------------- -------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Dividends from net investment income .......................... (644,216) (47,048,382) (41,916,629)
Dividends in excess of net investment income .................. -- (1,675,372) (11,493)
Distributions from realized gains ............................. (110,383) (187,473,461) (363,887,385)
Distributions in excess of realized gains ..................... (46,993) -- --
Tax return of capital distributions ........................... -- (1,707,109) --
--------------- -------------- ---------------
Decrease in net assets from dividends and distributions ....... (801,592) (237,904,324) (405,815,507)
--------------- -------------- ---------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ................................................... 39,737,348 520,896,037 397,726,692
Shares issued in reinvestment of dividends and distributions ... 801,592 237,904,324 405,815,507
Shares redeemed ................................................. (3,308,642) (104,247,444) (182,829,265)
--------------- -------------- ---------------
Net increase in net assets derived from share transactions ..... 37,230,298 654,552,917 620,712,934
--------------- -------------- ---------------
INCREASE IN NET ASSETS .......................................... 36,748,208 341,117,230 817,835,623
NET ASSETS, BEGINNING OF PERIOD ................................. -- 3,125,127,631 2,307,292,008
--------------- -------------- ---------------
NET ASSETS, END OF PERIOD* ...................................... $36,748,208 $3,466,244,861 $3,125,127,631
=============== ============== ===============
</TABLE>
* Including accumulated undistributed (overdistributed) net investment
income of $3,552,516 and $1,370,867 for the Common Stock Portfolio and
$215,631 and $314,631 for the Global Portfolio and $12,105 and $(11,917)
for the Aggressive Stock Portfolio and $(1,522) and $(829) for the
Conservative Investors Portfolio and $146,879 and $60,988 for the Growth
Investors Portfolio, as of December 31, 1994 and December 31, 1993,
respectively, and $(113) for the Equity Index Portfolio, as of December
31, 1994.
** Commencement of Operations.
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS
GLOBAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO PORTFOLIO GROWTH INVESTORS PORTFOLIO
- - ------------------------------ ------------------------------ ------------------------------ ------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1994 1993 1994 1993 1994 1993 1994 1993
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 3,875,457 $ 510,146 $ 2,046,981 $ 3,657,426 $ 7,840,102 $ 4,134,257 $ 12,859,008 $ 5,732,204
8,257,708 12,252,578 (44,726,592) 123,157,103 (9,714,278) 4,834,934 (7,561,554) 14,903,894
(6,372,853) 6,344,597 (7,416,655) 84,157,305 (3,628,013) (416,361) (17,401,140) 7,849,673
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
5,760,312 19,107,321 (50,096,266) 210,971,834 (5,502,189) 8,552,830 (12,103,686) 28,485,771
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(3,755,996) (1,107,571) (2,006,386) (3,674,910) (7,847,155) (4,134,257) (12,859,008) (5,947,393)
-- -- -- -- -- (829) (323,341) --
(8,257,708) (12,211,997) -- (123,157,103) -- (4,783,178) -- (14,776,249)
(134,077) (5,595) -- (3,243,480) -- -- -- --
(395,364) -- (49,382) (562,661) -- -- -- --
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(12,543,145) (13,325,163) (2,055,768) (130,638,154) (7,847,155) (8,918,264) (13,182,349) (20,723,642)
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
302,129,663 88,394,115 691,803,895 466,941,435 72,545,380 44,645,437 240,852,053 102,925,614
12,543,145 13,325,163 2,055,768 130,638,154 7,847,155 8,918,264 13,182,349 20,723,642
(27,448,676) (15,415,668) (366,875,063) (331,157,828) (7,769,739) (9,455,081) (14,738,042) (1,593,716)
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
287,224,132 86,303,610 326,984,600 266,421,761 72,622,796 44,108,620 239,296,360 122,055,540
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
280,441,299 92,085,768 274,832,566 346,755,441 59,273,452 43,743,186 214,010,325 129,817,669
141,256,984 49,171,216 1,557,331,714 1,210,576,273 114,417,858 70,674,672 278,467,224 148,649,555
- - -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
$421,698,283 $141,256,984 $1,832,164,280 $1,557,331,714 $173,691,310 $114,417,858 $492,477,549 $278,467,224
============== ============== ============== ============== ============== ============== ============== ==============
</TABLE>
8
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL ANNUAL
AMOUNT VALUE (NOTE 1) YIELD*
- - ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES
Nationsbank Corp.
Due 01/30/95 ............................... $10,000,000 $ 9,999,332 6.34%
Republic National Bank--N.Y.
Due 03/08/95 ............................... 5,000,000 4,980,206 6.48
--------------
TOTAL BANK NOTES (4.6%) ................... 14,979,538
--------------
COMMERCIAL PAPER
ABS Commercial Paper, Inc.
Due 02/10/95 ............................... 8,000,000 7,946,244 6.19
AGA Capital Corp.
Due 01/13/95 ............................... 12,300,000 12,274,372 6.03
Allomon Funding Corp.
Due 02/10/95 ............................... 8,400,000 8,343,557 6.19
ASI Funding Corp.
Due 02/01/95 ............................... 4,438,000 4,414,725 6.18
Barton Capital Corp.
Due 01/25/95 ............................... 7,000,000 6,971,806 6.07
Berkley Funding Corp.
Due 01/18/95 ............................... 3,025,000 3,016,228 6.07
Ciesco LP
Due 02/08/95 ............................... 5,000,000 4,967,771 6.24
Communications Satellite Corp.
Due 02/06/95 ............................... 3,200,000 3,180,431 6.24
Copley Financing Corp.:
Due 01/12/95 ............................... 6,356,000 6,343,775 6.03
Due 01/24/95 ............................... 5,000,000 4,980,667 6.07
C.S. First Boston, Inc.
Due 02/03/95 ............................... 5,000,000 4,971,903 6.24
Walt Disney Co.
Due 01/03/95 ............................... 9,200,000 9,195,630 5.95
Equipment Funding, Inc.:
Due 01/09/95 ............................... 5,000,000 4,992,788 6.03
Due 02/07/95 ............................... 7,000,000 6,956,258 6.21
ESC Securitization, Inc.
Due 03/15/95 ............................... 10,000,000 9,874,611 6.42
Ford Motor Credit Co.
Due 01/11/95 ............................... 7,900,000 7,885,927 6.10
General Electric Capital Corp.
Due 02/07/95 ............................... 5,000,000 4,968,861 6.18
Goldman Sachs & Co.
Due 02/02/95 ............................... 7,000,000 6,961,821 6.24
International Lease Finance Corp.
Due 02/07/95 ............................... 7,000,000 6,956,036 6.24
International Securitization
Due 01/20/95 ............................... 8,775,000 8,746,628 6.09
Merrill Lynch & Co., Inc.
Due 01/25/95 ............................... 7,000,000 6,971,563 6.12
Morgan Stanley Group, Inc.
Due 01/12/95 ............................... 10,000,000 9,980,567 6.10
Nicollet Funding Corp.
Due 01/23/95 ............................... 10,000,000 9,962,944 6.07
October Corp.
Due 01/27/95 ............................... 8,000,000 7,965,200 6.07
</TABLE>
9
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1994
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL ANNUAL
AMOUNT VALUE (NOTE 1) YIELD*
- - -------------------------------------------- ------------- -------------- -----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES (CONTINUED):
Preferred Receivables Funding:
Due 01/19/95 ............................... $ 5,000,000 $ 4,984,563 6.12%
Due 02/14/95 ............................... 6,370,000 6,322,623 6.24
Premium Funding
Due 01/26/95 ............................... 6,722,000 6,693,600 6.12
Progress Receivables Funding
Due 01/20/95 ............................... 5,000,000 4,983,889 6.07
Sheffield Receivables Corp.
Due 02/21/95 ............................... 3,000,000 2,974,433 6.19
Sumitomo Corp. of America
Due 03/28/95 ............................... 8,800,000 8,669,210 6.48
Three River Funding
Due 01/20/95 ............................... 8,000,000 7,974,222 6.07
U.S. Leasing Corp.
Due 01/31/95 ............................... 8,300,000 8,257,688 6.20
Weyerhaueser Mortgage Co.
Due 01/17/95 ............................... 5,000,000 4,986,188 6.12
WMC Finance
Due 01/30/95 ............................... 7,000,000 6,965,581 6.18
Working Capital Management Corp.
Due 01/17/95 ............................... 7,019,000 6,999,776 6.07
--------------
TOTAL COMMERCIAL PAPER (73.3%) ............ 238,642,086
--------------
TIME DEPOSITS (2.8%)
Industrial Bank of Japan-N.Y.
Due 01/03/95 ............................... 8,997,000 8,996,718 6.54
--------------
VARIABLE RATE COMMERCIAL PAPER
ASCC Commercial Paper
Due 01/04/95 ............................... 9,500,000 9,501,496 4.57
PNC Bank N.A.
Due 01/04/95 ............................... 10,000,000 10,000,130 5.95
--------------
TOTAL VARIABLE RATE COMMERCIAL PAPER
(6.0%) ..................................... 19,501,626
--------------
VARIABLE RATE LIBOR (3.1%)
American Express Centerian
Due 01/17/95 ............................... 10,000,000 10,000,810 6.26
--------------
TOTAL SHORT-TERM DEBT SECURITIES (89.8%)
(Amortized Cost $292,100,623) .............. 292,120,778
CASH AND RECEIVABLES LESS LIABILITIES
(10.2%) .................................... 33,270,218
--------------
NET ASSETS (100.0%) ......................... $325,390,996
==============
<FN>
* Based on market values at the close of business on December 31, 1994.
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
THE HUDSON RIVER TRUST
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE (NOTE
AMOUNT 1)
- - --------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE
MORTGAGE RELATED (46.1%) ........
Federal Home Loan
Mortgage Corp.:
8.0%, 06/01/02 ................. $17,600,804 $17,430,297
8.0%, 06/01/17 ................. 542,967 517,007
9.5%, 01/01/20 ................. 9,690 9,954
Government National Mortgage
Association: ...................
11.5%, 09/15/11 ................ 45,535 49,961
11.5%, 03/15/13 ................ 70,879 77,768
11.5%, 04/15/13 ................ 33,304 36,542
11.5%, 05/15/13 ................ 80,297 88,103
11.5%, 09/15/15 ................ 8,948 9,818
Federal Home Loan Mortgage Corp./
Government National Mortgage
Association
4.75% Series 23-PC, 07/25/11 .. 4,600,000 4,167,313
-------------
22,386,763
-------------
U.S. GOVERNMENT AGENCIES (16.3%)
Aid Israel
Zero Coupon, 09/15/03 .......... 4,052,000 2,022,353
Resolution Funding S.T.R.I.P.S.,
Zero Coupon Deb., 04/15/99 .... 5,000,000 3,584,350
U.S. Treasury
7.25% Note, 05/15/04 ........... 2,400,000 2,304,747
-------------
7,911,450
-------------
TOTAL CREDIT SENSITIVE (62.4%) 30,298,213
-------------
TOTAL LONG-TERM DEBT SECURITIES (62.4%)
(Amortized Cost $31,230,241) .. 30,298,213
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank:
5.75%, due 01/03/95 ............ $ 3,140,000 $ 3,138,495
5.84%, due 01/10/95 ............ 3,000,000 2,995,134
5.8%, due 01/25/95 ............. 2,000,000 1,991,944
Federal Home Loan Mortgage Corp.
5.91%, due 01/05/95 ............ 2,000,000 1,998,358
Federal National Mortgage
Association
5.85%, due 01/04/95 ............ 3,000,000 2,998,050
-------------
TOTAL U.S. GOVERNMENT (27.1%) 13,121,981
-------------
TOTAL SHORT-TERM DEBT SECURITIES (27.1%)
(Amortized Cost $13,121,981) .. 13,121,981
-------------
TOTAL INVESTMENTS (89.5%)
(Amortized Cost $44,352,222) .. 43,420,194
CASH AND RECEIVABLES LESS
LIABILITIES (10.5%) ............ 5,097,670
-------------
NET ASSETS (100.0%) ............. $48,517,864
=============
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
THE HUDSON RIVER TRUST
QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PROFESSIONAL SERVICES (1.6%)
Health & Rehabilitation 5.34%
Floater, 07/13/99 (a) ......... $ 2,000,000 $ 1,981,390
-------------
CREDIT SENSITIVE
BANKS (3.1%)
Citicorp 5.0% Floater, 01/30/98
(a) ........................... 4,000,000 3,965,000
-------------
FINANCIAL SERVICES (5.9%)
Lehman Brothers Holding, Inc.
Zero Coupon Medium Term Note,
02/10/96 ...................... 4,000,000 3,830,000
Navistar Finance 6.4% Series
94-B, 01/15/20 ................ 3,806,416 3,720,772
-------------
7,550,772
-------------
MORTGAGE RELATED (40.5%)
Federal Home Loan Mortgage
Corp.: 8.0%, 06/01/02 ......... 5,199,567 5,149,196
7.0% Series 1468-N (PAC
Interest Only), 12/15/15 ..... 13,306,152 1,605,055
Federal National Mortgage
Association: Zero Coupon,
10/09/19 ...................... 25,400,000 3,397,250
6.5% (PAC Interest Only),
09/25/08 ...................... 26,523,487 3,821,040
Government National Mortgage
Association:
7.0%, 09/15/23 ............... 9,546,685 8,562,183
7.5%, 11/15/23 ............... 8,213,761 7,615,701
8.0%, 10/15/23 ............... 4,563,568 4,361,060
7.5%, 02/15/24 ............... 9,681,266 8,976,354
9.0%, 09/15/24 ............... 8,124,189 8,195,276
-------------
51,683,115
-------------
FOREIGN GOVERNMENT (3.2%)
Republic of Colombia 7.25%,
02/23/04 ..................... 5,000,000 4,118,750
-------------
LONG-TERM DEBT SECURITIES (CONTINUED):
U.S. GOVERNMENT (10.1%)
U.S. Treasury:
8.125% Bond, 08/15/19 ......... $ 3,000,000 $ 3,037,500
6.25% Bond, 08/15/23 .......... 5,000,000 4,060,935
7.5% Bond, 11/15/24 ........... 5,900,000 5,640,028
-------------
12,738,463
-------------
TOTAL CREDIT SENSITIVE (62.8%) 80,056,100
-------------
TECHNOLOGY
TELECOMMUNICATIONS (2.7%)
TKR Cable, Inc. 10.5% Note,
10/30/07 ..................... 3,500,000 3,579,484
-------------
TOTAL LONG-TERM DEBT SECURITIES (67.1%)
(Amortized Cost $91,794,232) .. 85,616,974
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank: 5.75%,
due 01/03/95 ................. 8,380,000 8,375,985
5.65%, due 01/05/95 .......... 12,800,000 12,789,954
5.75%, due 01/10/95 .......... 4,530,000 4,522,765
5.84%, due 01/10/95 .......... 3,850,000 3,843,754
5.8%, due 01/25/95 ........... 910,000 906,335
Federal Home Loan Mortgage
Corp. 5.85%, due 01/05/95 .... 5,800,000 5,795,288
Federal National Mortgage
Association 5.85%, due
01/04/95 ..................... 1,700,000 1,698,895
Student Loan Marketing
Association 5.85%, due
01/06/95 ..................... 3,000,000 2,997,075
-------------
TOTAL U.S. GOVERNMENT (32.1%) . 40,930,051
-------------
TOTAL SHORT-TERM DEBT SECURITIES (32.1%)
(Amortized Cost $40,930,051) .. 40,930,051
-------------
TOTAL INVESTMENTS (99.2%)
(Amortized Cost $132,724,283) 126,547,025
CASH AND RECEIVABLES LESS
LIABILITIES (0.8%) ........... 1,028,444
-------------
NET ASSETS (100.0%) ............ $127,575,469
=============
</TABLE>
(a) Interest rate shown on floating rate securities represents the rate at
December 31, 1994.
See Notes to Financial Statements.
12
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- - ----------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES (0.0%)
ENVIRONMENTAL CONTROL
ICF Kaiser International,
Inc--Warrants* ................ 4,800 $ 6,000
------------
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
General Media, Inc.--Warrants* 1,750 26,250
------------
TOTAL BUSINESS SERVICES (0.0%) 32,250
------------
CONSUMER CYCLICALS (0.1%)
APPAREL, TEXTILE
Avi Holdings, Inc.--Warrants* . 1,000 45,000
------------
TOTAL COMMON STOCKS (0.1%)
(Cost $17) .................... 77,250
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (7.5%)
Applied Extrusion 11.5%,
04/01/02 ....................... $1,000,000 990,000
Buckeye Cellulose 10.25%,
05/15/01 ....................... 1,000,000 935,000
G-I Holdings Zero Coupon Sr.
Disc. Note, 10/01/98 ........... 2,000,000 1,235,000
Rexene Corp. 11.75%, 12/01/04 .. 1,000,000 1,025,000
Trans Resources, Inc. 11.875%
Series B Sr. Sub. Note,
07/01/02 ....................... 1,500,000 1,365,000
------------
5,550,000
------------
METALS & MINING (6.6%)
Acme Metals 12.5%, 08/01/02 .... 1,500,000 1,440,000
Kaiser Aluminum 12.75%, 02/01/03 2,000,000 2,015,000
Renco Metals, Inc. 12.0%,
07/15/00 ....................... 1,500,000 1,426,875
------------
4,881,875
------------
PAPER (8.2%)
Domtar, Inc. 12.0%, 04/15/01 ... 1,300,000 1,352,000
Indah Kiat International Finance
11.875%, 06/15/02 .............. 1,500,000 1,455,000
Stone Container Corp. 9.875%,
02/01/01 ....................... 1,500,000 1,410,000
Sweetheart Cup 10.5%, 09/01/03 . 1,000,000 920,000
Williamhouse Regency of
Delaware, Inc. 11.5%, 06/15/05 1,000,000 920,000
------------
6,057,000
------------
TOTAL BASIC MATERIALS (22.3%) . 16,488,875
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.2%)
ICF Kaiser International, Inc.
12.0% Note, 12/31/03 ........... 1,000,000 860,000
------------
PRINTING, PUBLISHING &
BROADCASTING (7.5%)
American Media Operation
11.625%, 11/15/04 .............. 1,500,000 1,537,500
General Media, Inc. 10.625%
Note, 12/31/00 ................. 1,750,000 1,645,000
</TABLE>
<PAGE>
- - ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - --------------------------------- ------------ ---------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
United States Banknote Corp.
10.375% Sr. Note, 06/01/02 ..... $1,000,000 $ 850,000
Young Broadcasting 11.75%,
11/15/04 ........................ 1,500,000 1,515,000
---------------
5,547,500
---------------
TOTAL BUSINESS SERVICES (8.7%) . 6,407,500
---------------
CAPITAL GOODS
AEROSPACE (2.0%)
Rohr, Inc. 11.625%, 05/15/03 .... 1,500,000 1,492,500
---------------
BUILDING & CONSTRUCTION (2.7%)
American Standard Corp. 10.875%
Sr. Note, 05/15/99 .............. 1,000,000 1,012,500
Standard Pacific Corp. 10.5%,
03/01/00 ........................ 1,000,000 980,000
---------------
1,992,500
---------------
MACHINERY (2.6%)
Specialty Equipment 11.375%,
12/01/03 ........................ 2,000,000 1,940,000
---------------
TOTAL CAPITAL GOODS (7.3%) ..... 5,425,000
---------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (4.2%)
Apparel Ventures, Inc. 12.25%,
12/31/00+ ....................... 1,000,000 895,000
CMI Industries 9.5%, 10/01/03 ... 1,500,000 1,245,000
Hosiery Corp. of America 13.75%,
08/01/02+(a) .................... 1,000,000 967,500
---------------
3,107,500
---------------
HOUSEHOLD FURNITURE, APPLIANCES (1.2%)
Cort Furniture 12.0%, 09/01/00 .. 1,000,000 920,000
---------------
RETAIL--GENERAL (2.1%)
FTD Acquisition 14.0%, 12/15/01+ 1,500,000 1,500,000
---------------
TOTAL CONSUMER CYCLICALS (7.5%) 5,527,500
---------------
CONSUMER NONCYCLICALS
CONTAINERS (6.0%)
Calmar Spray Systems 14.0%,
02/15/99 ........................ 2,000,000 1,990,000
Container Corp. 11.25%, 05/01/04 1,500,000 1,537,500
Seminole Kraft Corp. 13.5% Sub.
Note, 10/15/96 .................. 300,000 300,000
Silgan Corp. 11.75% Deb.,
06/15/02 ........................ 600,000 621,000
---------------
4,448,500
---------------
HOSPITAL SUPPLIES & SERVICES (2.0%)
Thermoscan 11.5% Floating Rate,
08/15/01+ (a)(c) ................ 1,500,000 1,470,000
</TABLE>
13
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ----------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
RETAIL--FOOD (4.7%)
Food for Less 10.45% Sr.
Unsecured Note, 04/15/00 ........ $1,500,000 $ 1,470,000
Grand Union Co. 12.25%,
07/15/02** ...................... 3,000,000 1,185,000
Pueblo Xtra International, Inc.
9.5%, 08/01/03 .................. 1,000,000 840,000
---------------
3,495,000
---------------
SOAPS & TOILETRIES (1.3%)
Renaissance Cosmetics 13.75%,
08/15/01 (a)+ ................... 1,000,000 955,000
---------------
TOTAL CONSUMER NONCYCLICALS (14.0%) 10,368,500
---------------
CREDIT SENSITIVE
BANKS (2.0%)
Dime Bancorp 10.5%, 11/15/05 .... 1,500,000 1,485,000
---------------
FINANCIAL SERVICES (4.8%)
Keystone Group, Inc. 9.75%,
09/01/03 ........................ 1,000,000 920,000
NL Industries 11.75%, 10/15/03 .. 1,500,000 1,509,375
Nextel Communications 9.75%,
08/15/04 (b) .................... 3,000,000 1,080,000
---------------
3,509,375
---------------
FOREIGN GOVERNMENT (7.1%)
Republic of Argentina 4.25%
Floating Rate, 03/31/23 (c) .... 3,000,000 1,271,250
Republic of Brazil 5.25% Floating
Rate, 04/15/12 (c) .............. 2,540,000 1,527,175
Kingdom of Morocco 4.312%
Floating Rate Participating
Loan, 01/01/09 (c) .............. 3,700,000 2,448,938
---------------
5,247,363
---------------
UTILITY--ELECTRIC (2.0%)
Texas New Mexico Power Co.
10.75%, 09/15/03 ................ 1,500,000 1,477,500
---------------
UTILITY--GAS (3.1%)
Midland Cogeneration Venture
11.75% Series A Deb., 07/23/05 . 2,500,000 2,283,575
---------------
TOTAL CREDIT SENSITIVE (19.0%) . 14,002,813
---------------
LONG-TERM DEBT SECURTIES (CONTINUED)
ENERGY
COAL & GAS PIPELINES (1.8%)
Mesa Capital Corp. 12.75%,
06/30/98 (b) .................... $1,500,000 $ 1,293,750
---------------
OIL--DOMESTIC (2.0%)
Flores & Rucks 13.5%, 12/01/04 .. 1,500,000 1,511,250
---------------
TOTAL ENERGY (3.8%) ............. 2,805,000
---------------
TECHNOLOGY
ELECTRONICS (1.9%)
Panamsat L.P. 9.75% Sr. Secured
Notes, 08/01/00 ................. 1,500,000 1,413,750
---------------
TELECOMMUNICATIONS (4.7%)
Centennial Cellular 8.875%,
11/01/01 ........................ 1,000,000 890,000
Mobile Telecommunications 13.5%,
12/15/02 ........................ 1,500,000 1,520,625
USA Mobile Communications 14.0%,
11/01/04 ........................ 1,000,000 1,022,500
---------------
3,433,125
---------------
TOTAL TECHNOLOGY (6.6%) ......... 4,846,875
---------------
DIVERSIFIED (2.0%)
MISCELLANEOUS
Dade International, Inc. 13.0%,
02/01/05+ ....................... 1,500,000 1,503,750
---------------
</TABLE>
<PAGE>
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ----------------------------------------------------------------
<S> <C> <C>
TOTAL LONG-TERM DEBT SECURITIES (91.2%)
(Amortized Cost $71,465,993) ... 67,375,813
---------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (7.4%)
Federal Home Loan Bank 5.75%, Due
01/03/95 ........................ 5,460,000 5,457,384
---------------
TOTAL SHORT-TERM DEBT SECURITIES (7.4%)
(Amortized Cost $5,457,384) .... 5,457,384
---------------
TOTAL INVESTMENTS (98.7%) (Cost/Amortized Cost
$76,923,394) 72,910,447
CASH AND RECEIVABLES LESS
LIABILITIES (1.3%) .............. 984,182
---------------
NET ASSETS (100.0%) .............. $73,894,629
===============
<FN>
* Non-income producing.
** Non-income producing--issuer filed for protection under the Federal
Bankruptcy Code.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers.
(a) Consists of more than one class of securities traded together as a
unit; generally bonds with attached stocks or warrants.
(b) Debt security initially issued in zero coupon form which converts to
coupon form at a specific rate and date.
(c) Interest rate shown on floating rate securities represents the rate at
December 31, 1994.
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
METALS & MINING (1.6%)
American Barrick Resources
Corp. ......................... 578,700 $12,876,075
Wolverine Tube, Inc. * ......... 326,400 7,752,000
---------------
TOTAL BASIC MATERIALS (1.6%) . 20,628,075
---------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (2.0%)
Air & Water Technologies Corp.
(Class A)* .................... 379,000 2,274,000
Thermo Instrument Systems, Inc.
* ............................. 751,300 23,853,775
---------------
26,127,775
---------------
PRINTING, PUBLISHING & BROADCASTING (2.1%)
Clear Channel Communications,
Inc. * ........................ 283,800 14,402,850
Infinity Broadcasting Corp.
(Class A)* .................... 450,000 14,175,000
---------------
28,577,850
---------------
PROFESSIONAL SERVICES (0.7%)
Loewen Group, Inc. ............. 331,000 8,771,500
---------------
TOTAL BUSINESS SERVICES (4.8%) 63,477,125
---------------
CAPITAL GOODS
MACHINERY (1.2%)
Deere & Co. .................... 130,000 8,612,500
Solectron Corp.* ............... 291,500 8,016,250
---------------
TOTAL CAPITAL GOODS (1.2%) ... 16,628,750
---------------
CONSUMER CYCLICALS
AUTOS & TRUCKS (1.4%)
Ek Chor China Motorcycle Co. .. 314,100 4,279,612
Paccar, Inc. ................... 323,900 14,332,575
---------------
18,612,187
---------------
FOOD SERVICES, LODGING (3.5%)
Brinker International, Inc. * . 866,400 15,703,500
Luby's Cafeterias, Inc. ........ 564,200 12,623,975
Outback Steakhouse, Inc. * .... 268,000 6,298,000
Spaghetti Warehouse, Inc.*++ .. 348,500 1,698,938
Taco Cabana (Class A)*++ ...... 1,087,450 9,922,981
---------------
46,247,394
---------------
HOUSEHOLD FURNITURE, APPLIANCES (2.4%)
Heilig Meyers Co. .............. 619,000 15,629,750
Leggett & Platt, Inc. .......... 454,400 15,904,000
---------------
31,533,750
---------------
LEISURE RELATED (4.7%)
Aldila*++ ...................... 901,700 10,369,550
Callaway Golf Company .......... 228,000 7,552,500
Coastcast Corp.* ............... 432,600 5,083,050
Cobra Golf, Inc. * ............. 147,000 5,255,250
Coleman Co., Inc. * ............ 377,400 13,256,175
Gaylord Entertainment Co.
(Class A) ..................... 909,600 20,693,400
---------------
62,209,925
---------------
RETAIL--GENERAL (2.3%)
Eckerd Corp.* .................. 272,000 8,126,000
May Department Stores Co. ..... 271,300 9,156,375
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Walgreen Co. ................... 320,000 $14,000,000
---------------
31,282,375
---------------
TOTAL CONSUMER CYCLICALS (14.3%) 189,885,631
---------------
CONSUMER NONCYCLICALS
BEVERAGES (0.1%)
Celestial Seasonings, Inc. * .. 50,000 731,250
---------------
FOODS (2.3%)
McCormick & Co. ................ 622,000 11,351,500
Wrigley (Wm.), Jr. Co. ......... 388,700 19,192,062
---------------
30,543,562
---------------
CONTAINERS (0.6%)
Bemis, Inc. .................... 328,000 7,872,000
---------------
DRUGS (3.2%)
Merck & Co., Inc. .............. 565,200 21,548,250
Mylan Laboratories, Inc. ...... 759,000 20,493,000
---------------
42,041,250
---------------
HOSPITAL SUPPLIES & SERVICES (1.3%)
Surgical Care Affiliates, Inc. 864,000 17,496,000
---------------
RETAIL--FOOD (0.9%)
Sysco Corp. .................... 488,000 12,566,000
---------------
SOAPS & TOILETRIES (1.2%)
Clorox Co. ..................... 113,000 6,652,875
Gillette Corp. ................. 123,500 9,231,625
---------------
15,884,500
---------------
TOTAL CONSUMER NONCYCLICALS (9.6%) 127,134,562
---------------
CREDIT SENSITIVE
FINANCIAL SERVICES (1.2%)
Mercury Finance Co. ............ 1,204,000 15,652,000
---------------
INSURANCE (0.5%)
American International Group,
Inc. .......................... 70,000 6,860,000
---------------
REAL ESTATE (1.1%)
Irvine Apartment Communities .. 96,000 1,572,000
Oasis Residential, Inc. ........ 552,000 13,524,000
---------------
15,096,000
---------------
UTILITY--ELECTRIC (0.9%)
Duke Power Co. ................. 170,000 6,481,250
Southern Co. ................... 250,000 5,000,000
---------------
11,481,250
---------------
UTILITY--GAS (1.2%)
ENRON Corp. .................... 540,000 16,470,000
---------------
UTILITY--TELEPHONE (1.5%)
Telephone & Data Systems, Inc. 232,400 10,719,450
U.S. West, Inc. ................ 251,000 8,941,875
---------------
19,661,325
---------------
TOTAL CREDIT SENSITIVE (6.4%) 85,220,575
---------------
ENERGY
COAL & GAS PIPELINES (1.2%)
Questar Corp. .................. 603,800 16,604,500
---------------
OIL--DOMESTIC (3.4%)
Anadarko Petroleum Corp. ...... 379,400 14,606,900
</TABLE>
15
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS :
Apache Corp. ................... 210,000 $ 5,250,000
Enron Oil and Gas Co. .......... 229,900 4,310,625
Phillips Petroleum Co. ......... 401,000 13,132,750
Valero Energy Corp. ............ 475,500 8,024,062
---------------
45,324,337
---------------
OIL--INTERNATIONAL (0.7%)
YPF Sociedad Anonima (ADR) .... 405,300 8,663,288
---------------
OIL--SUPPLIES & CONSTRUCTION (2.4%)
Seitel, Inc. * ................. 279,000 5,998,500
Smith International, Inc. * ... 605,000 7,562,500
Tidewater, Inc. ................ 439,000 8,121,500
Western Atlas, Inc. * .......... 276,000 10,384,500
---------------
32,067,000
---------------
RAILROADS (3.0%)
Illinois Central Corp. ......... 1,311,900 40,340,925
---------------
TOTAL ENERGY (10.7%) .......... 143,000,050
---------------
TECHNOLOGY
ELECTRONICS (3.5%)
Sensormatic Electronics Corp. . 1,187,450 42,748,200
Sun Television and Appliances . 475,200 3,979,800
---------------
46,728,000
---------------
TELECOMMUNICATIONS (2.0%)
AirTouch Communications, Inc.* 429,000 12,494,625
Vodafone Group PLC (ADR) ...... 420,500 14,139,313
---------------
26,633,938
---------------
TOTAL TECHNOLOGY (5.5%) ...... 73,361,938
---------------
TOTAL COMMON STOCKS (54.1%)
(Cost $732,328,995) ........... 719,336,706
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
--------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE (13.0%)
U.S. GOVERNMENT
U.S. Treasury 6.25% Bond,
08/15/23 ....................... $212,720,000 172,768,419
-------------
ENERGY (0.2%)
COAL & GAS PIPELINES
California Energy Co., Inc.
5.0% Conv. Sub. Deb.,
07/31/00 ...................... 3,680,000 3,109,600
-------------
TECHNOLOGY (1.7%)
ELECTRONICS
General Instrument Corp. 5.0%
Conv., 06/15/00 ................ 16,360,000 21,881,500
-------------
TOTAL LONG-TERM DEBT SECURITIES (14.9%)
(Amortized Cost $208,686,626) 197,759,519
-------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (28.7%)
AGA Capital Corp:
5.95%, due 01/13/95 ........... 4,700,000 4,689,902
6.07%, due 01/13/95 ........... 12,700,000 12,672,162
Alamo Funding L.P.
6.05%, due 01/20/95 ........... 5,000,000 4,983,195
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES
(CONTINUED):
Allomon Funding Corp:
5.9%, due 01/27/95 ............ $11,247,000 $ 11,197,232
6.1%, due 01/23/95 ............ 11,000,000 10,957,131
ASCC Commercial Paper
6.12%, due 02/08/95 ........... 15,000,000 14,900,550
Barton Capital Corp. 6.08%,
due 01/05/95 ................... 15,000,000 14,987,332
Communications Satellite Corp.
5.9%, due 01/31/95 ............ 14,900,000 14,824,300
Copley Financing Corp. 6.05%,
due 01/24/95 ................... 10,000,000 9,959,667
Walt Disney Co. 5.75%, due
01/03/95 ....................... 3,928,000 3,926,118
Equipment Funding, Inc:
6.05%, due 01/09/95 ........... 6,628,000 6,617,975
6.125%, due 02/07/95 .......... 14,000,000 13,909,486
ESC Securitization, Inc. 6.3%,
due 03/15/95 ................... 15,000,000 14,811,917
Ford Motor Credit Co. 5.85%,
due 01/11/95 ................... 25,000,000 24,955,312
General Electric Capital Corp.
6.1%, due 02/28/95 ............ 15,000,000 14,850,042
Goldman Sachs & Co. 6.0%, due
02/02/95 ....................... 18,000,000 17,901,000
International Lease Finance Corp.
6.13%, due 02/07/95 ........... 10,000,000 9,935,295
Merrill Lynch & Co., Inc.
6.05%, due 01/23/95 ........... 10,000,000 9,961,347
6.05%, due 01/25/95 ........... 6,700,000 6,671,851
Morgan Stanley Group, Inc.
5.92%, due 01/12/95 ........... 18,300,000 18,263,887
October Corp:
6.0%, due 01/13/95 ............ 11,200,000 11,175,733
6.1%, due 01/27/95 ............ 7,961,000 7,924,578
PHH Group, Inc. 6.05%, due
01/18/95 ....................... 11,500,000 11,465,213
Preferred Receivables Funding
6.12%, due 02/14/95 ........... 10,000,000 9,923,500
Premium Funding:
6.0%, due 01/10/95 ............ 12,188,000 12,167,687
6.1%, due 01/19/95 ............ 10,054,000 10,021,632
Progress Receivables Funding
6.08%, due 01/20/95 ........... 6,750,000 6,727,200
Sheffield Receivables Corp:
6.05%, due 01/18/95 ........... 15,000,000 14,954,625
6.07%, due 02/21/95 ........... 11,300,000 11,200,924
Sumitomo Corp. of America
6.3%, due 03/28/95 ............ 7,000,000 6,895,963
Three River Funding 6.1%, due
01/20/95 ....................... 8,470,000 8,441,296
Weyerhaueser Mortgage Co.
6.0%, due 01/17/95 ............ 5,000,000 4,985,833
Working Capital Management Corp.
6.12%, due 01/13/95 ........... 15,000,000 14,966,850
Younkers Funding Corp. 6.05%,
due 01/25/95 ................... 10,000,000 9,957,986
-------------
TOTAL COMMERCIAL PAPER (28.7%) 381,784,721
-------------
</TABLE>
16
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (CONTINUED):
TIME DEPOSITS (1.3%)
Industrial Bank of Japan--N.Y.
5.875%, due 01/03/95 ......... $18,288,000 $ 18,288,000
---------------
TOTAL SHORT-TERM DEBT SECURITIES (30.0%)
(Amortized Cost $400,064,017) 400,072,721
---------------
TOTAL INVESTMENTS (99.0%) (Cost/Amortized
Cost $1,341,079,638) 1,317,168,946
CASH AND RECEIVABLES LESS
LIABILITIES (1.0%) ............ 12,650,666
---------------
NET ASSETS (100.0%) ........... $1,329,819,612
===============
</TABLE>
* Non-income producing.
++ Affiliated company as defined under the Investment Company Act of 1940
(see Note 5).
See Notes to Financial Statements.
17
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (3.3%)
Avery Dennison Corp. ........... 10,000 $ 355,000
Dow Chemical Co. ............... 5,000 336,250
Union Carbide Corp. ............ 12,000 352,500
---------------
1,043,750
---------------
PAPER (2.9%)
Kimberly Clark Corp. ........... 4,000 202,000
Union Camp Corp. ............... 15,000 706,875
---------------
908,875
---------------
TOTAL BASIC MATERIALS (6.2%) . 1,952,625
---------------
BUSINESS SERVICES (0.7%)
PROFESSIONAL SERVICES
GATX Corp. ..................... 5,000 220,000
---------------
CAPITAL GOODS
AEROSPACE (1.3%)
Northrop Grumman Corp. ......... 10,000 420,000
---------------
ELECTRICAL EQUIPMENT (3.3%)
General Electric Co. ........... 10,000 510,000
Thomas & Betts Corp. ........... 8,000 537,000
---------------
1,047,000
---------------
TOTAL CAPITAL GOODS (4.6%) ... 1,467,000
---------------
CONSUMER CYCLICALS
AUTO RELATED (0.8%)
Dana Corp. ..................... 4,000 93,500
Echlin, Inc. ................... 5,000 150,000
---------------
243,500
---------------
RETAIL--GENERAL (0.4%)
Penney (J.C.), Inc. ............ 3,000 133,875
---------------
TOTAL CONSUMER CYCLICALS (1.2%) 377,375
---------------
CONSUMER NONCYCLICALS
DRUGS (0.5%)
Schering Plough Corp. .......... 2,000 148,000
---------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Baxter International, Inc. .... 10,000 282,500
---------------
SOAPS & TOILETRIES (1.9%)
Clorox Co. ..................... 10,000 588,750
---------------
TOBACCO (4.0%)
Philip Morris Cos., Inc. ...... 10,000 575,000
UST, Inc. ...................... 25,000 693,750
---------------
1,268,750
---------------
TOTAL CONSUMER NONCYCLICALS (7.3%) 2,288,000
---------------
CREDIT SENSITIVE
BANKS (3.2%)
Bank of New York Co. ........... 25,000 725,000
Boatmen's Bancshares, Inc. .... 10,000 271,250
---------------
996,250
---------------
FINANCIAL SERVICES (2.5%)
American Express Co. ........... 10,000 295,000
Beneficial Corp. ............... 10,000 390,000
MBNA Corp. ..................... 5,000 116,875
---------------
801,875
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
INSURANCE (2.3%)
Jefferson Pilot Corp. .......... 5,000 $ 259,375
Saint Paul Cos., Inc. .......... 10,000 447,500
---------------
706,875
---------------
UTILITY--ELECTRIC (4.0%)
Duke Power Co. ................. 15,000 571,875
Portland General Corp. ......... 15,000 288,750
Teco Energy Incorporated ...... 20,000 402,500
---------------
1,263,125
---------------
UTILITY--TELEPHONE (2.7%)
Alltel Corp. ................... 6,000 180,750
Ameritech Corp. ................ 8,000 323,000
Rochester Telephone Corp. ..... 6,000 126,750
Sprint Corp. ................... 8,000 221,000
---------------
851,500
---------------
TOTAL CREDIT SENSITIVE (14.7%) 4,619,625
---------------
ENERGY
COAL & GAS PIPELINES (1.5%)
MCN Corp. ...................... 10,000 181,250
Sonat, Inc. .................... 10,000 280,000
---------------
461,250
---------------
OIL--DOMESTIC (2.1%)
Phillips Petroleum Co. ......... 20,000 655,000
---------------
OIL--INTERNATIONAL (2.1%)
Mobil Corp. .................... 8,000 674,000
---------------
OIL--SUPPLIES & CONSTRUCTION (1.0%)
Halliburton Co. ................ 10,000 331,250
---------------
TOTAL ENERGY (6.7%) ........... 2,121,500
---------------
TECHNOLOGY
OFFICE EQUIPMENT (1.0%)
Diebold, Inc. .................. 3,000 123,375
Xerox Corp. .................... 2,000 198,000
---------------
TOTAL TECHNOLOGY (1.0%) ...... 321,375
---------------
DIVERSIFIED (1.4%)
MISCELLANEOUS
Minnesota Mining &
Manufacturing Co. ............. 8,000 427,000
---------------
TOTAL COMMON STOCKS (43.8%)
(Cost $14,091,558) ............ 13,794,500
---------------
PREFERRED STOCKS:
BASIC MATERIALS
PAPER (0.4%)
Bowater, Inc.
7.0% Conv. Series B ........... 4,500 109,125
---------------
STEEL (0.6%)
Bethlehem Steel Corp. $3.50
Conv.+ ........................ 2,600 128,700
WHX Corp. Series A Conv. ...... 1,300 61,750
---------------
190,450
---------------
TOTAL BASIC MATERIALS (1.0%) . 299,575
---------------
</TABLE>
18
E>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS (CONTINUED):
BUSINESS SERVICES (0.5%)
PRINTING, PUBLISHING &
BROADCASTING
LCI International $5.00 Conv. . 4,800 $ 172,800
---------------
CONSUMER NONCYCLICALS
DRUGS (0.1%)
Gensia Pharmaceuticals, Inc.
$3.75 Conv.+ .................. 1,800 21,375
---------------
RETAIL--FOOD (0.6%)
Best Buy Capital L.P. 6.5%
Conv. ......................... 4,400 188,650
---------------
TOTAL CONSUMER NONCYCLICALS (0.7%) 210,025
---------------
CREDIT SENSITIVE
BANKS (0.5%)
Citicorp $5.375 Conv. .......... 1,300 148,362
---------------
FINANCIAL SERVICES (0.3%)
First USA $6.25 Conv. .......... 3,400 110,925
---------------
TOTAL CREDIT SENSITIVE (0.8%) 259,287
---------------
ENERGY
OIL--DOMESTIC (0.1%)
Snyder Oil Corp. $4.00 Conv. .. 300 24,638
---------------
OIL--SUPPLIES & CONSTRUCTION (0.9%)
Noble Drilling $2.25 Conv. .... 2,400 78,600
Offshore Pipeline, Inc. $2.25
Conv. ......................... 4,100 200,900
---------------
279,500
---------------
TOTAL ENERGY (1.0%) ........... 304,138
---------------
TECHNOLOGY
OFFICE EQUIPMENT (0.7%)
Dell Computer Corp. 7.0% Conv.+ 1,300 223,600
---------------
ELECTRONICS (0.6%)
National Semiconductor Corp.
$3.25 Conv. ................... 2,800 203,000
---------------
TOTAL TECHNOLOGY (1.3%) ...... 426,600
---------------
TOTAL PREFERRED STOCKS (5.3%)
(Cost $1,730,941) ............. 1,672,425
</TABLE>
---------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.6%)
PAPER
Stone Container Corp. 8.875%
Conv. Sub. Deb., 07/15/00 .... $105,000 176,794
---------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Thermo Electron Corp. 4.625%
Conv. Sub. Deb., 08/01/97+ ... 100,000 142,875
---------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
PROFESSIONAL SERVICES (0.6%) ...
First Financial Management Corp.
5.0% Conv., 12/15/99 ........... $185,000 $193,556
---------------
TOTAL BUSINESS SERVICES (1.1%) 336,431
---------------
CAPITAL GOODS
MACHINERY (1.2%)
Solectron Corp. Zero Coupon
Conv. Sub. Note, 05/05/12 ..... 360,000 206,550
Titan Wheel International 4.75%
Conv., 12/01/00 ................ 160,000 173,600
---------------
TOTAL CAPITAL GOODS (1.2%) .... 380,150
---------------
CONSUMER CYCLICALS
RETAIL--GENERAL (2.6%)
Home Depot, Inc. 4.5% Conv. Sub.
Deb., 02/15/97 ................. 165,000 196,968
Lowes Companies, Inc. 3.0%
Conv., 07/22/03 ................ 120,000 162,900
Office Depot, Inc. Zero Coupon
Conv., 11/01/08 ................ 415,000 230,325
Sports & Recreation, Inc. 4.25%
Conv., 11/01/00 ................ 220,000 238,150
---------------
TOTAL CONSUMER CYCLICALS (2.6%) 828,343
---------------
CONSUMER NONCYCLICALS
DRUGS (0.5%)
Chiron Corp. 1.9% Conv.,
11/17/00+ ...................... 200,000 142,000
---------------
HOSPITAL SUPPLIES & SERVICES (2.5%)
Integrated Health Services, Inc.
5.75% Conv., 01/01/01 .......... 175,000 226,844
Pacific Physician Services 5.5%
Conv., 12/15/03 ................ 85,000 67,575
Phycor, Inc. 6.5% Conv.,
01/15/03 ....................... 85,000 171,275
Quantum Health Resources, Inc.
4.75% Conv., 10/01/00 .......... 130,000 137,150
Sun Healthcare Group 6.0% Conv.,
03/01/04 ....................... 155,000 191,425
---------------
794,269
---------------
RETAIL--FOOD (0.8%)
Kroger Co. 6.375% Jr. Sub. Conv.
Note, 12/01/99 ................. 205,000 272,394
---------------
TOTAL CONSUMER NONCYCLICALS (3.8%) 1,208,663
---------------
CREDIT SENSITIVE (0.6%)
BANKS
Bank of New York Co. 7.5% Conv.,
08/15/01 ....................... 135,000 199,463
---------------
ENERGY
OIL--DOMESTIC (0.5%)
Apache Corp. 6.0% Conv.,
01/15/02+ ...................... 150,000 153,375
---------------
</TABLE>
19
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
OIL--SUPPLIES & CONSTRUCTION (0.4%)
Amoco Canada 7.375% Conv. Sub.
Deb., 09/01/13 ................. $ 125,000 $ 143,750
---------------
TOTAL ENERGY (0.9%) ............ 297,125
---------------
TECHNOLOGY
ELECTRONICS (6.8%)
Arrow Electronics, Inc. 5.75%
Conv., 10/15/02 ................ 180,000 206,775
Cypress Semiconductor 3.15%
Conv., 03/15/01+ ............... 225,000 208,125
EMC Corp: 4.25% Conv., 01/01/01 540,000 639,900
6.25% Conv., 04/01/02 .......... 5,000 35,494
General Instrument Corp. 5.0%
Conv., 06/15/00 ................ 175,000 234,062
LSI Logic Corp. 5.5% Conv.,
03/15/01+ ...................... 160,000 280,000
Lam Research Corp. 6.0% Conv.
Sub. Deb., 05/01/03 ............ 205,000 319,800
Motorola, Inc. Zero Coupon
Conv., 09/27/13 ................ 320,000 220,800
---------------
TOTAL TECHNOLOGY (6.8%) ........ 2,144,956
---------------
TOTAL LONG-TERM DEBT SECURITIES (17.6%)
(Amortized Cost $5,456,403) ... 5,571,925
SHORT-TERM DEBT SECURITIES:
---------------
U.S. GOVERNMENT
Federal Home Loan Bank: 5.75%,
due 01/03/95 ................... $3,580,000 $ 3,578,285
5.8%, due 01/25/95 ............. 1,900,000 1,892,347
Federal Home Loan Mortgage Corp.
5.85%, due 01/05/95 ............ 4,000,000 3,996,750
Student Loan Marketing
Association 5.85%, due 01/06/95 1,400,000 1,398,635
---------------
TOTAL U.S. GOVERNMENT (34.5%) 10,866,017
---------------
TOTAL SHORT-TERM DEBT SECURITIES (34.5%)
(Amortized Cost $10,866,017) .. 10,866,017
---------------
TOTAL INVESTMENTS (101.2%) (Cost/Amortized
Cost $32,144,919) 31,904,867
CASH AND RECEIVABLES LESS
LIABILITIES (-1.2%) ............ (382,496)
---------------
NET ASSETS (100.0%) ............. $31,522,371
===============
</TABLE>
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers.
See Notes to Financial Statements.
20
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (3.0%)
Air Products & Chemicals, Inc. .. 1,200 $ 53,550
Avery Dennison Corp. ............. 600 21,300
Dow Chemical Co. ................. 3,000 201,750
Dupont (E.I.) de Nemours & Co. .. 7,400 416,250
Eastman Chemical Company ......... 900 45,450
Ecolab, Inc. ..................... 700 14,700
FMC Corp.* ....................... 400 23,100
Goodrich (B.F.) Co. .............. 300 13,013
Grace (W.R.) & Co. ............... 1,000 38,625
Hercules, Inc. ................... 400 46,150
Millipore Corp. .................. 300 14,513
Monsanto Co. ..................... 1,300 91,650
Nalco Chemical Co. ............... 700 23,450
Rohm & Haas Co. .................. 700 39,988
Union Carbide Corp. .............. 1,600 47,000
------------
1,090,489
------------
METALS & MINING (1.5%)
Alcan Aluminium Ltd. ............. 2,400 60,900
Aluminum Co. of America .......... 1,000 86,625
American Barrick Resources Corp. 3,700 82,325
Asarco, Inc. ..................... 400 11,400
Cyprus Amax Minerals Co. ......... 1,000 26,125
Echo Bay Mines Ltd. .............. 1,100 11,688
Engelhard Corp. .................. 1,000 22,250
Homestake Mining Co. ............. 1,300 22,263
Inco Ltd. ........................ 1,200 34,350
Newmont Mining Corp. ............. 948 34,128
Phelps Dodge Corp. ............... 700 43,313
Placer Dome, Inc. ................ 2,600 56,550
Reynolds Metals Co. .............. 700 34,300
Santa Fe Pacific Gold Corp.* .... 1,320 16,995
------------
543,212
------------
PAPER (1.5%)
Champion International Corp. .... 1,000 36,500
Federal Paper Board, Inc. ........ 500 14,500
Georgia Pacific Corp. ............ 1,000 71,500
International Paper Co. .......... 1,400 105,525
James River Corp. of Virginia ... 800 16,200
Kimberly Clark Corp. ............. 1,700 85,850
Mead Corp. ....................... 600 29,175
Moore Corp. Ltd. ................. 1,000 18,875
Potlatch Corp. ................... 400 14,900
Scott Paper Co. .................. 800 55,300
Stone Container Corp.* ........... 800 13,800
Temple Inland, Inc. .............. 600 27,075
Union Camp Corp. ................. 800 37,700
Westvaco Corp. ................... 700 27,475
------------
554,375
------------
CHEMICALS-SPECIALTY (0.3%)
Great Lakes Chemical Corp. ...... 800 45,600
Morton International, Inc. ...... 1,600 45,600
Raychem Corp. .................... 500 17,813
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Sigma Aldrich .................... 500 $ 16,500
------------
125,513
------------
STEEL (0.4%)
Bethlehem Steel Corp.* ........... 1,200 21,600
Inland Steel Industries, Inc.* .. 500 17,563
Nucor Corp. ...................... 1,000 55,500
USX--U.S. Steel .................. 800 28,400
Worthington Industries, Inc. .... 900 18,000
------------
141,063
------------
TOTAL BASIC MATERIALS (6.7%) ... 2,454,652
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.6%)
Browning-Ferris Industries, Inc. 2,100 59,588
Johnson Controls, Inc. ........... 400 19,600
WMX Technologies, Inc. ........... 5,200 136,500
------------
215,688
------------
PRINTING, PUBLISHING &
BROADCASTING (3.1%)
CBS, Inc. ........................ 710 39,316
Capital Cities ABC, Inc. ......... 1,700 144,925
Comcast Corp. (Class A) .......... 2,600 40,788
Deluxe Corp. ..................... 900 23,850
Donnelley (R.R.) & Sons Co. ..... 1,600 47,200
Dow Jones & Co., Inc. ............ 1,000 31,000
Dun & Bradstreet Corp. ........... 1,800 99,000
Gannett Co. ...................... 1,500 79,875
John H. Harland Co. .............. 700 14,000
Jostens, Inc. .................... 800 14,900
King World Productions, Inc.* ... 400 13,800
Knight-Ridder, Inc. .............. 600 30,300
McGraw-Hill, Inc. ................ 500 33,438
New York Times Co. ............... 1,100 24,338
Tele-Communications, Inc. (Class
A)* ............................. 6,100 132,675
Time Warner, Inc. ................ 4,100 144,013
Times Mirror Co. ................. 1,400 43,925
Tribune Co. ...................... 700 38,325
Viacom, Inc. Class A* ............ 200 8,325
Viacom, Inc. Class B* ............ 3,700 150,313
------------
1,154,306
------------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. ................ 1,100 40,838
Interpublic Group Cos., Inc. .... 800 25,700
Safety Kleen Corp. ............... 1,000 14,750
Service Corp. International ..... 1,000 27,750
------------
109,038
------------
TRUCKING, SHIPPING (0.3%)
Consolidated Freightways, Inc. .. 800 17,900
Federal Express Corp.* ........... 600 36,150
Roadway Services, Inc. ........... 400 22,700
Ryder System, Inc. ............... 700 15,400
------------
92,150
------------
TOTAL BUSINESS SERVICES (4.3%) . 1,571,182
------------
</TABLE>
21
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
CAPITAL GOODS
AEROSPACE (2.0%)
Boeing Co. ....................... 3,700 $ 172,975
E Systems, Inc. .................. 400 16,650
General Dynamics Corp. ........... 700 30,450
Lockheed Corp. ................... 700 50,838
Loral Corp. ...................... 900 34,088
Martin Marietta Corp. ............ 1,000 44,375
McDonnell Douglas Corp. .......... 400 56,800
Northrop Grumman Corp. ........... 500 21,000
Raytheon Co. ..................... 1,400 89,425
Rockwell International Corp. .... 2,300 82,225
TRW, Inc. ........................ 700 46,200
United Technologies Corp. ........ 1,300 81,738
------------
726,764
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.8%)
Armstrong World Industries, Inc. 400 15,400
Crane Co. ........................ 500 13,438
Louisiana Pacific Corp. .......... 1,200 32,700
Masco Corp. ...................... 1,700 38,463
Owens Corning Fiberglass Corp.* . 400 12,800
PPG Industries, Inc. ............. 2,300 85,388
Sherwin Williams Co. ............. 900 29,813
Weyerhaeuser Co. ................. 2,200 82,500
------------
310,502
------------
BUILDING & CONSTRUCTION (0.0%)
Centex Corp. ..................... 600 13,650
------------
ELECTRICAL EQUIPMENT (3.2%)
Emerson Electric Co. ............. 2,400 150,000
General Electric Co. ............. 18,500 943,500
Grainger (W.W.), Inc. ............ 500 28,875
Thomas & Betts Corp. ............. 200 13,425
Westinghouse Electric Corp. ..... 3,800 46,550
------------
1,182,350
------------
MACHINERY (1.5%)
Briggs & Stratton ................ 500 16,375
Caterpillar, Inc. ................ 2,200 121,275
Clark Equipment Co.* ............. 300 16,275
Cooper Industries, Inc. .......... 1,200 40,950
Cummins Engine, Inc. ............. 400 18,100
Deere & Co. ...................... 900 59,625
Dover Corp. ...................... 600 30,975
Fluor Corp. ...................... 900 38,813
Foster Wheeler Corp. ............. 500 14,875
General Signal Corp. ............. 500 15,938
Illinois Tool Works, Inc. ........ 1,200 52,500
Ingersoll Rand Co. ............... 1,100 34,650
Pall Corp. ....................... 1,200 22,500
Parker Hannifin Corp. ............ 500 22,750
Timken Co. ....................... 400 14,100
Varity Corp.* .................... 500 18,125
------------
537,826
------------
TOTAL CAPITAL GOODS (7.5%) ..... 2,771,092
------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* ....................... 800 $ 42,600
Delta Air Lines, Inc. ............ 500 25,250
Southwest Airlines Co. ........... 1,600 26,800
------------
94,650
------------
APPAREL, TEXTILE (0.5%)
Liz Claiborne, Inc. .............. 900 15,188
National Service Industries, Inc. 500 12,813
Nike, Inc. ....................... 800 59,700
Reebok International, Ltd. ...... 900 35,550
Russell Corp. .................... 400 12,550
Springs Industries, Inc. ......... 400 14,800
VF Corp. ......................... 700 34,038
------------
184,639
------------
AUTOS & TRUCKS (2.4%)
Chrysler Corp. ................... 3,800 186,200
Ford Motor Co. ................... 11,100 310,800
General Motors Corp. ............. 8,200 346,450
Navistar International Corp.* ... 1,100 16,638
Paccar, Inc. ..................... 400 17,700
Trinova Corp. .................... 500 14,688
------------
892,476
------------
AUTO RELATED (0.6%)
Cooper Tire & Rubber Co. ......... 800 18,900
Dana Corp. ....................... 1,000 23,375
Eaton Corp. ...................... 800 39,600
Echlin, Inc. ..................... 600 18,000
Genuine Parts Co. ................ 1,300 46,800
Goodyear Tire & Rubber Co. ...... 1,600 53,800
Snap-On Tools Corp. .............. 500 16,625
------------
217,100
------------
FOOD SERVICES, LODGING (0.9%)
Marriott International, Inc. .... 1,300 36,563
McDonald's Corp. ................. 7,600 222,300
Promus Cos., Inc.* ............... 1,100 34,100
Shoneys, Inc.* ................... 1,100 14,025
Wendys International, Inc. ...... 1,000 14,375
------------
321,363
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.7%)
Black & Decker Corp. ............. 800 19,000
Maytag Corp. ..................... 1,000 15,000
Newell Co. ....................... 1,600 33,600
Premark International, Inc. ..... 700 31,325
Rubbermaid, Inc. ................. 1,700 48,875
Stanley Works .................... 500 17,875
Whirlpool Corp. .................. 800 40,600
Zenith Electronics Corp.* ........ 1,300 15,113
------------
221,388
------------
LEISURE RELATED (1.2%)
American Greetings Corp. ......... 800 21,600
Brunswick Corp. .................. 900 16,988
Disney (Walt) Co. ................ 5,800 267,525
</TABLE>
22
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Fleetwood Enterprises, Inc. ..... 700 $ 13,125
Hasbro, Inc. ..................... 900 26,325
Hilton Hotels Corp. .............. 500 33,688
Mattel, Inc. ..................... 1,900 47,738
------------
426,989
------------
PHOTO & OPTICAL (0.6%)
Allergan, Inc. ................... 700 19,775
Bausch & Lomb, Inc. .............. 600 20,325
Eastman Kodak Co. ................ 3,700 176,675
Polaroid Corp. ................... 400 13,000
------------
229,775
------------
RETAIL--GENERAL (5.0%)
Charming Shoppes, Inc. ........... 1,900 12,588
Circuit City Stores, Inc. ........ 1,000 22,250
Dayton Hudson Corp. .............. 800 56,600
Dillard Department Stores ........ 1,200 32,100
Gap, Inc. ........................ 1,600 48,800
Home Depot, Inc. ................. 4,900 225,400
K-Mart Corp. ..................... 4,900 63,700
Limited, Inc. .................... 3,900 70,688
Lowes Cos., Inc. ................. 1,700 59,075
May Department Stores Co. ........ 2,700 91,125
Melville Corp. ................... 1,100 33,963
Mercantile Stores, Inc. .......... 400 15,800
Nordstrom, Inc. .................. 900 37,800
Penney (J.C.), Inc. .............. 2,500 111,563
Pep Boys Manny Moe & Jack ........ 700 21,700
Price/Costco, Inc.* .............. 2,300 29,613
Rite Aid Corp. ................... 900 21,038
Sears Roebuck & Co. .............. 3,800 174,800
Tandy Corp. ...................... 700 35,088
TJX Cos., Inc. ................... 900 14,063
Toys R Us, Inc.* ................. 3,100 94,550
Wal-Mart Stores, Inc. ............ 24,100 512,125
Walgreen Co. ..................... 1,300 56,875
Woolworth Corp. .................. 1,300 19,500
------------
1,860,804
------------
TOTAL CONSUMER CYCLICALS (12.2%) 4,449,184
------------
CONSUMER NONCYCLICALS
BEVERAGES (3.6%)
Anheuser Busch, Inc. ............. 2,900 147,538
Brown Forman Corp. (Class B) .... 600 18,300
Coca-Cola Co. .................... 13,900 715,850
Harcourt General, Inc. ........... 800 28,200
Pepsico, Inc. .................... 8,500 308,125
Seagram Ltd. ..................... 4,100 120,950
------------
1,338,963
------------
FOODS (3.0%)
Archer Daniels Midland Co. ...... 5,525 113,953
Campbell Soup Co. ................ 2,700 119,138
ConAgra, Inc. .................... 2,700 84,375
CPC International, Inc. .......... 1,600 85,200
General Mills, Inc. .............. 1,700 96,900
Heinz (H.J.) Co. ................. 2,700 99,225
Hershey Foods Corp. .............. 900 43,538
Kellogg Co. ...................... 2,400 139,500
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Pioneer Hi Bred International,
Inc. ............................ 900 $ 31,050
Quaker Oats Co. .................. 1,400 43,050
Ralston Purina Group ............. 1,100 49,088
Sara Lee Corp. ................... 5,200 131,300
Whitman Corp. .................... 1,100 18,975
Wrigley (Wm.), Jr. Co. ........... 1,200 59,250
------------
1,114,542
------------
CONTAINERS (0.2%)
Ball Corp. ....................... 400 12,600
Bemis, Inc. ...................... 600 14,400
Crown Cork & Seal, Inc.* ......... 800 30,200
------------
57,200
------------
DRUGS (5.2%)
ALZA Corp. (Class A)* ............ 800 14,400
American Home Products Corp. .... 3,300 207,075
Amgen, Inc.* ..................... 1,400 82,600
Bristol-Myers Squibb Co. ......... 5,500 318,313
Lilly (Eli) & Co. ................ 3,200 210,000
Merck & Co., Inc. ................ 13,600 518,500
Pfizer, Inc. ..................... 3,400 262,650
Schering Plough Corp. ............ 2,000 148,000
Upjohn Co. ....................... 1,900 58,425
Warner-Lambert Co. ............... 1,400 107,800
------------
1,927,763
------------
HOSPITAL SUPPLIES & SERVICES (3.5%)
Abbott Laboratories, Inc. ........ 8,700 283,838
Bard (C.R.), Inc. ................ 600 16,200
Baxter International, Inc. ...... 3,000 84,750
Becton Dickinson & Co. ........... 800 38,400
Beverly Enterprises, Inc.* ...... 1,000 14,375
Biomet, Inc.* .................... 1,100 15,400
Columbia HCA Healthcare Corp. ... 3,900 142,350
Johnson and Johnson .............. 7,000 383,250
Mallinckrodt Group, Inc. ......... 800 23,900
Manor Care, Inc. ................. 700 19,163
Medtronic, Inc. .................. 1,200 66,750
National Medical Enterprises,
Inc.* ........................... 1,800 25,425
Saint Jude Medical, Inc. ......... 500 19,875
United Healthcare Corp. .......... 1,900 85,738
U.S. Healthcare, Inc. ............ 1,700 70,125
U.S. Surgical Corp. .............. 700 13,300
------------
1,302,839
------------
RETAIL--FOOD (0.8%)
Albertsons, Inc. ................. 2,700 78,300
American Stores Co. .............. 1,500 40,313
Fleming Cos., Inc. ............... 600 13,950
Giant Food, Inc. (Class A) ...... 600 13,050
Great Atlantic & Pacific Tea,
Inc. ............................ 800 14,500
Kroger Co.* ...................... 1,200 28,950
Supervalu, Inc. .................. 700 17,150
Sysco Corp. ...................... 1,900 48,925
</TABLE>
23
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Winn Dixie Stores, Inc. .......... 800 $ 41,100
------------
296,238
------------
SOAPS & TOILETRIES (2.9%)
Alberto Culver Co. ............... 600 16,350
Avon Products, Inc. .............. 700 41,825
Clorox Co. ....................... 600 35,325
Colgate Palmolive Co. ............ 1,500 95,063
Gillette Corp. ................... 2,400 179,400
International Flavors &
Fragrances, Inc. ................ 1,200 55,500
Procter & Gamble Co. ............. 7,400 458,800
Unilever NV ...................... 1,700 198,050
------------
1,080,313
------------
TOBACCO (2.0%)
American Brands, Inc. ............ 2,200 82,500
Philip Morris Cos, Inc. .......... 9,300 534,750
UST, Inc. ........................ 2,100 58,275
------------
675,525
------------
TOTAL CONSUMER NONCYCLICALS (21.2%) 7,793,383
------------
CREDIT SENSITIVE
BANKS (5.2%)
Ahmanson (H.F.) & Co. ............ 1,200 19,350
Banc One Corp. ................... 4,400 111,650
Bank of Boston Corp. ............. 1,100 28,463
BankAmerica Corp. ................ 4,000 158,000
Bankers Trust New York Corp. .... 800 44,300
Barnett Banks, Inc. .............. 1,000 38,375
Boatmen's Bancshares, Inc. ...... 1,100 29,838
Chase Manhattan Corp. ............ 2,000 68,750
Chemical Banking Corp. ........... 2,600 93,275
Citicorp ......................... 4,300 177,913
CoreStates Financial Corp. ...... 1,500 39,000
First Chicago Corp. .............. 1,000 47,750
First Fidelity BankCorp. ......... 900 40,388
First Interstate Bancorp. ........ 800 54,100
First Union Corp. ................ 1,900 78,613
Golden West Financial Corp. ..... 700 24,675
Great Western Financial Corp. ... 1,400 22,400
KeyCorp. ......................... 2,600 65,000
Mellon Bank Corp. ................ 1,600 49,000
Morgan (J.P.) & Co., Inc. ........ 2,000 112,000
National City Corp. .............. 1,600 41,400
Nationsbank Corp. ................ 3,000 135,375
NBD Bancorp., Inc. ............... 1,700 46,538
Norwest Corp. .................... 3,300 77,138
PNC Financial Corp. .............. 2,500 52,813
Shawmut National Corp. ........... 1,300 21,288
Suntrust Banks, Inc. ............. 1,300 62,075
U.S. Bancorp. .................... 1,000 22,625
Wachovia Corp. ................... 1,800 58,050
Wells Fargo & Co. ................ 600 87,000
------------
1,907,142
------------
FINANCIAL SERVICES (1.4%)
American Express Co. ............. 5,500 162,250
Beneficial Corp. ................. 600 23,400
Dean Witter Discover & Co. ...... 1,800 60,975
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Fleet Financial Group, Inc. ..... 1,500 $ 48,750
Household International, Inc. ... 1,000 37,125
MBNA Corp. ....................... 1,600 37,400
Merrill Lynch & Co., Inc. ........ 2,100 75,075
Salomon, Inc. .................... 1,100 41,250
Transamerica Corp. ............... 700 34,825
------------
521,050
------------
INSURANCE (3.1%)
Aetna Life & Casualty Co. ........ 1,200 56,550
Alexander & Alexander Services,
Inc. ............................ 600 11,100
American General Corp. ........... 2,200 62,150
American International Group,
Inc. ............................ 3,400 333,200
CIGNA Corp. ...................... 800 50,900
Chubb Corp. ...................... 900 69,638
Continental Corp. ................ 1,000 19,000
General Re Corp. ................. 900 111,375
Jefferson Pilot Corp. ............ 500 25,938
Lincoln National Corp. Industries 1,000 35,000
Marsh & McLennan Cos., Inc. ..... 800 63,400
Providian Corp. .................. 1,000 30,875
Safeco Corp. ..................... 700 36,400
Saint Paul Cos., Inc. ............ 900 40,275
Torchmark Corp. .................. 700 24,413
Travelers, Inc. .................. 3,500 113,750
UNUM Corp. ....................... 800 30,200
USF&G Corp. ...................... 900 12,263
------------
1,126,427
------------
MORTGAGE RELATED (0.9%)
Federal Home Loan Mortgage Corp. 1,900 95,950
Federal National Mortgage
Association ..................... 3,000 218,625
------------
314,575
------------
UTILITY--ELECTRIC (3.9%)
American Electric Power, Inc. ... 2,000 65,750
Baltimore Gas & Electric Co. .... 1,600 35,400
Carolina Power & Light Co. ...... 1,700 45,263
Central & South West Corp. ...... 2,100 47,513
Cinergy Corp ..................... 1,613 37,704
Consolidated Edison Co. N.Y.,
Inc. ............................ 2,500 64,375
Detroit Edison Co. ............... 1,600 41,800
Dominion Resources, Inc. ......... 1,900 67,925
Duke Power Co. ................... 2,200 83,875
Entergy Corp. .................... 2,500 54,688
FPL Group, Inc. .................. 2,000 70,250
Houston Industries, Inc. ......... 1,400 49,875
Niagara Mohawk Power Co. ......... 1,500 21,375
Northern States Power Co. ........ 700 30,800
Ohio Edison Co. .................. 1,600 29,600
Peco Energy Co. .................. 2,400 58,800
Pacific Gas & Electric Co. ...... 4,700 114,563
Pacificorp. ...................... 3,100 56,188
Public Service Enterprise Group . 2,700 71,550
SCE Corp. ........................ 4,900 71,663
</TABLE>
24
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Southern Co. ..................... 7,000 $ 140,000
Texas Utilities Co. .............. 2,400 76,800
Unicom Corporation ............... 2,300 55,200
Union Electric Co. ............... 1,100 38,913
------------
1,429,870
------------
UTILITY--GAS (0.4%)
Consolidated Natural Gas Co. .... 1,000 35,500
ENRON Corp. ...................... 2,700 82,350
Nicor, Inc. ...................... 600 13,650
Peoples Energy Corp. ............. 600 15,675
------------
147,175
------------
UTILITY--TELEPHONE (7.6%)
Alltel Corp. ..................... 2,000 60,250
Ameritech Corp. .................. 5,900 238,213
AT&T Corp. ....................... 16,900 849,225
Bell Atlantic Corp. .............. 4,700 233,825
BellSouth Corp. .................. 5,400 292,275
GTE Corp. ........................ 10,400 315,900
NYNEX Corp. ...................... 4,500 165,375
Pacific Telesis Group ............ 4,600 131,100
Southwestern Bell Corp. .......... 6,400 258,400
Sprint Corp. ..................... 3,700 102,213
U.S. West, Inc. .................. 4,900 174,563
------------
2,821,339
------------
TOTAL CREDIT SENSITIVE (22.5%) . 8,267,578
------------
ENERGY
COAL & GAS PIPELINES (0.9%)
Burlington Resources, Inc. ...... 1,400 49,000
Coastal Corp. .................... 1,100 28,325
Enserch Corp. .................... 1,100 14,438
Nacco Industries, Inc. (Class A) 300 14,513
Pacific Enterprises, Ltd. ........ 900 19,125
Panhandle Eastern Corp. .......... 1,600 31,600
Pittston Services Group .......... 600 15,900
Praxair, Inc. .................... 1,400 28,700
Sonat, Inc. ...................... 900 25,200
Tenneco, Inc. .................... 1,800 76,500
Transco Energy Co. ............... 1,000 16,625
Williams Cos., Inc. .............. 1,100 27,638
------------
347,564
------------
OIL--DOMESTIC (2.6%)
Amerada Hess Corp. ............... 1,000 45,625
Amoco Corp. ...................... 5,400 319,275
Ashland Oil, Inc. ................ 600 20,700
Atlantic Richfield Co. ........... 1,700 172,975
Kerr McGee Corp. ................. 600 27,600
Louisiana Land & Exploration
Corp. ........................... 400 14,550
Occidental Petroleum Corp. ...... 3,300 63,525
Oryx Energy Co.* ................. 1,200 14,250
Pennzoil Co. ..................... 500 22,063
Phillips Petroleum Co. ........... 2,800 91,700
Santa Fe Energy Resources, Inc.* 1,600 12,800
Sun, Inc. ........................ 1,100 31,625
USX-Marathon Group ............... 2,900 47,488
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Unocal Corp. ..................... 2,600 $ 70,850
------------
955,026
------------
OIL--INTERNATIONAL (6.2%)
Chevron Corp. .................... 7,000 312,375
Exxon Corp. ...................... 13,300 807,975
Mobil Corp. ...................... 4,300 362,275
Royal Dutch Petroleum Co. (ADR) . 5,800 623,500
Texaco, Inc. ..................... 2,800 167,650
------------
2,273,775
------------
OIL--SUPPLIES & CONSTRUCTION (0.8%)
Baker Hughes, Inc. ............... 1,400 25,550
Dresser Industries, Inc. ......... 1,900 35,863
Halliburton Co. .................. 1,200 39,750
Helmerich & Payne, Inc. .......... 500 12,813
McDermott International, Inc. ... 500 12,375
Schlumberger, Ltd. ............... 2,600 130,975
Western Atlas, Inc.* ............. 600 22,575
------------
279,901
------------
RAILROADS (1.0%)
Burlington Northern Railroad
Industries ...................... 1,000 48,125
Conrail, Inc. .................... 800 40,400
CSX Corp. ........................ 1,100 76,588
Norfolk Southern Corp. ........... 1,500 90,938
Santa Fe Pacific Corp. ........... 2,000 35,000
Union Pacific Corp. .............. 2,200 100,375
------------
391,426
------------
TOTAL ENERGY (11.5%) ............ 4,247,692
------------
TECHNOLOGY
OFFICE EQUIPMENT (3.4%)
Amdahl Corp.* .................... 1,300 14,300
Apple Computer, Inc. ............. 1,300 50,700
Ceridian Corp.* .................. 600 16,125
Compaq Computer Corp.* ........... 2,800 110,600
Cray Research, Inc.* ............. 800 12,600
Digital Equipment Corp.* ......... 1,500 49,875
Hewlett-Packard Co. .............. 2,700 269,663
Honeywell, Inc. .................. 1,400 44,100
International Business Machines
Corp. ........................... 6,300 463,050
Pitney Bowes, Inc. ............... 1,700 53,975
Sun Microsystems, Inc.* .......... 1,000 35,500
Tandem Computers, Inc.* .......... 1,200 20,550
Unisys Corp.* .................... 1,700 14,663
Xerox Corp. ...................... 1,100 108,900
------------
1,264,601
------------
ELECTRONICS (3.0%)
Advanced Micro Devices, Inc.* ... 1,000 24,875
AMP, Inc. ........................ 1,100 80,025
Cisco Systems, Inc.* ............. 2,800 98,350
EG&G, Inc. ....................... 1,000 14,125
Harris Corp. ..................... 400 17,000
Intel Corp. ...................... 4,500 287,438
Micron Technology, Inc. .......... 1,100 48,538
</TABLE>
25
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Motorola, Inc. ................... 6,300 $ 364,613
National Semiconductor Corp.* ... 1,300 25,350
Perkin Elmer Corp. ............... 500 12,813
Texas Instruments, Inc. .......... 1,000 74,875
Tyco International, Ltd. ......... 800 38,000
------------
1,086,002
------------
OFFICE EQUIPMENT SERVICES (2.4%)
Autodesk, Inc. ................... 500 19,813
Automatic Data Processing, Inc. . 1,500 87,750
Computer Associates
International, Inc. ............. 1,700 82,450
Computer Sciences Corp.* ......... 500 25,500
First Data Corp. ................. 1,200 56,850
Lotus Development Corp.* ......... 500 20,500
Microsoft Corp.* ................. 6,300 385,088
Novell, Inc.* .................... 3,900 66,788
Oracle Systems Corp.* ............ 3,100 136,788
------------
881,527
------------
TELECOMMUNICATIONS (1.2%)
AirTouch Communications, Inc.* .. 5,300 154,363
Andrew Corp.* .................... 300 15,675
DSC Communications Corp.* ........ 1,200 43,050
MCI Communications Corp. ......... 7,200 132,300
Northern Telecommunications Ltd. 2,800 93,450
Scientific Atlanta, Inc. ......... 800 16,800
------------
455,638
------------
TOTAL TECHNOLOGY (10.0%) ........ 3,687,768
------------
COMMON STOCKS (CONTINUED):
DIVERSIFIED
MISCELLANEOUS (1.9%)
Alco Standard Corp. .............. 600 $ 37,650
Allied Signal, Inc. .............. 3,100 105,400
Corning, Inc. .................... 2,400 71,700
Dial Corp. ....................... 1,000 21,250
ITT Corp. ........................ 1,200 106,350
Minnesota Mining & Manufacturing
Co. ............................. 4,500 240,188
Ogden Corp. ...................... 700 13,125
Pet, Inc. ........................ 1,000 19,750
Teledyne, Inc.* .................. 900 18,113
Textron, Inc. .................... 1,000 50,327
------------
TOTAL DIVERSIFIED (1.9%) ........ 683,853
------------
TOTAL COMMON STOCKS (97.8%) (Cost
$36,361,344) .................... 35,926,384
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (2.0%)
Federal Home Loan Bank 5.75%, due
01/03/95 ........................ $745,000 744,643
------------
TOTAL SHORT-TERM DEBT SECURITIES (2.0%)
(Amortized Cost $744,643) ...... 744,643
------------
TOTAL INVESTMENTS (99.8%) (Cost
$37,105,987) .................... 36,671,027
CASH AND RECEIVABLES LESS
LIABILITIES (0.2%) .............. 77,181
------------
NET ASSETS (100.0%) .............. $36,748,208
============
<FN>
* Non-income producing.
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- - -------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.8%)
Lubrizol Corp. .................. 713,300 $ 24,163,038
Union Carbide Corp. ............. 165,000 4,846,875
-------------
29,009,913
-------------
METALS & MINING (1.8%)
Newmont Mining Corp. ............ 1,695,572 61,040,592
-------------
CHEMICALS-SPECIALTY (1.4%)
Great Lakes Chemical Corp. ..... 826,000 47,082,000
-------------
STEEL (1.4%)
A.K. Steel Holding Corp.* ...... 268,400 8,253,300
Bethlehem Steel Corp.* .......... 1,613,200 29,037,600
USX-U.S. Steel Corp. ............ 385,000 13,667,500
-------------
50,958,400
-------------
TOTAL BASIC MATERIALS (5.4%) .. 188,090,905
-------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (11.2%)
Chris Craft Industries, Inc.* .. 1,339 46,196
Chris Craft Industries, Inc.
(Class B)*++ ................... 1,188,092 40,989,174
Comcast Corp. (Class A) ......... 100,000 1,537,500
Comcast Corp. (Class A) SPL .... 275,000 4,314,063
Donnelley (R.R.) & Sons Co. .... 1,359,200 40,096,400
Grupo Televisa S.A. (GDR)+(a) .. 453,100 14,385,925
Tele-Communications, Inc. (Class
A)* ............................ 4,278,236 93,051,633
Time Warner, Inc. ............... 326,600 11,471,825
Viacom, Inc. (Class A)* ......... 45,776 1,905,426
Viacom, Inc. (Class B)* ......... 4,480,039 182,001,584
-------------
TOTAL BUSINESS SERVICES (11.2%) 389,799,726
-------------
CAPITAL GOODS ...................
BUILDING & CONSTRUCTION (0.0%)
Hopewell Holdings ............... 1,000,000 827,141
-------------
MACHINERY (1.1%)
Caterpillar, Inc. ............... 700,000 38,587,500
-------------
TOTAL CAPITAL GOODS (1.1%) .... 39,414,641
-------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.8%)
Stride Rite Corp. ............... 2,343,300 26,069,213
-------------
AUTOS & TRUCKS (7.3%)
Chrysler Corp. .................. 2,879,900 141,115,100
General Motors Corp. ............ 2,644,700 111,738,575
-------------
252,853,675
-------------
LEISURE RELATED (0.1%)
QVC Network* .................... 43,600 1,836,650
-------------
PHOTO & OPTICAL (3.0%)
Eastman Kodak Co. ............... 2,194,700 104,796,925
-------------
RETAIL-GENERAL (4.7%)
Home Depot, Inc. ................ 200,000 9,200,000
Sears Roebuck & Co. ............. 3,426,000 157,596,000
-------------
166,796,000
-------------
TOTAL CONSUMER CYCLICALS (15.9%) 552,352,463
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
CONSUMER NONCYCLICALS
FOODS (0.0%)
Dole Food Co., Inc. ............. 11,600 $ 266,800
-------------
DRUGS (2.0%)
Astra AB (Series A) ............. 1,250,000 32,298,994
Lilly (Eli) & Co. ............... 100,000 6,562,500
Merck & Co., Inc. ............... 565,000 21,540,625
Pfizer, Inc. .................... 100,000 7,725,000
-------------
68,127,119
-------------
HOSPITAL SUPPLIES & SERVICES (2.9%)
Abbott Laboratories, Inc. ...... 750,000 24,468,750
Columbia HCA Healthcare Corp. .. 760,320 27,751,680
Guidant Corp.* .................. 359,500 5,752,000
Maxxim Medical, Inc.* ........... 325,567 4,720,722
United Healthcare Corp. ......... 138,500 6,249,813
U.S. Healthcare, Inc. ........... 744,050 30,692,063
-------------
99,635,028
-------------
RETAIL-FOOD (1.0%)
Kroger Co.* ..................... 1,384,300 33,396,238
-------------
TOBACCO (3.1%)
Loews Corp. ..................... 700,550 60,860,281
Philip Morris Cos., Inc. ........ 877,700 50,467,750
-------------
111,328,031
-------------
TOTAL CONSUMER NONCYCLICALS (9.0%) 312,753,216
-------------
CREDIT SENSITIVE
BANKS (3.5%)
Citicorp ........................ 400,000 16,550,000
Grupo Financiero Banamex (Class
C)+ ............................ 8,392,000 24,796,462
Grupo Financiero Bancomer (ADR)
(Class C)+ ..................... 1,592,800 18,715,400
HSBC Holding PLC ................ 100,000 1,079,160
Nationsbank Corp. ............... 437,000 19,719,625
Shawmut National Corp. .......... 2,543,500 41,649,813
-------------
122,510,460
-------------
FINANCIAL SERVICES (2.5%)
American Express Co. ............ 1,595,000 47,052,500
Dean Witter Discover & Co. ..... 557,983 18,901,674
Franchise Finance Corp. of
America ........................ 100,000 1,737,500
Mercury Finance Co. ............. 34,800 452,400
Student Loan Marketing
Association .................... 545,000 17,712,500
-------------
85,856,574
-------------
INSURANCE (11.6%)
American International Group,
Inc. ........................... 1,901,700 186,366,600
Berkley (W.R.) Corp. ............ 748,143 28,055,363
Emphesys Financial Group, Inc. . 548,100 17,402,175
General Re Corp. ................ 33,800 4,182,750
MGIC Investment Corp. ........... 21,300 705,563
Progressive Corp. ............... 654,000 22,890,000
TIG Holdings, Inc. .............. 1,558,400 29,220,000
Travelers, Inc. ................. 3,432,966 111,571,395
</TABLE>
27
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
USF&G Corp. ..................... 127,500 $ 1,737,188
-------------
402,131,034
-------------
MORTGAGE RELATED (0.6%)
Federal National Mortgage
Association .................... 262,000 19,093,250
-------------
REAL ESTATE (4.9%)
AMLI Residential Property Trust 137,000 2,568,750
Associated Estates Realty Corp. 149,600 3,141,600
Avalon Properties, Inc. ......... 163,900 3,769,700
CBL & Associates Properties++ .. 1,056,700 21,794,438
Columbus Realty Trust ........... 360,000 6,660,000
DeBartolo Realty Corp. .......... 755,000 11,325,000
Essex Property Trust, Inc.++ ... 355,000 5,369,375
First Industrial Realty Trust .. 224,500 4,377,750
Gables Residential Trust ........ 250,000 5,375,000
Liberty Property Trust .......... 275,000 5,396,875
Macerich Co. .................... 350,000 7,481,250
Manufactured Home Communities .. 378,000 7,512,750
South Sea Development Co.* ..... 900 63
Paragon Group, Inc. ............. 237,800 4,518,200
Regency Realty Corp. ............ 768,700 12,875,725
Simon Property Group, Inc. ..... 1,373,000 33,295,250
Spieker Properties, Inc.++ ..... 1,317,200 26,837,950
Summit Properties ............... 205,000 3,946,250
Walden Residential Properties,
Inc. ........................... 185,000 3,306,875
-------------
169,552,801
-------------
UTILITY-GAS (0.1%)
ENRON Corp. ..................... 150,000 4,575,000
-------------
UTILITY-TELEPHONE (0.8%)
BellSouth Corp. ................. 5,412 292,925
Sprint Corp. .................... 1,005,000 27,763,125
-------------
28,056,050
-------------
TOTAL CREDIT SENSITIVE (24.0%) 831,775,169
-------------
ENERGY
OIL-DOMESTIC (0.6%)
Anadarko Petroleum Corp. ........ 187,500 7,218,750
Apache Corp. .................... 275,000 6,875,000
Enron Oil and Gas Co. ........... 353,400 6,626,250
-------------
20,720,000
-------------
OIL-INTERNATIONAL (0.4%)
YPF Sociedad Anonima (ADR) ..... 700,000 14,962,500
-------------
OIL-SUPPLIES & CONSTRUCTION (1.3%)
Baker Hughes, Inc. .............. 300,000 5,475,000
McDermott International, Inc. .. 190,000 4,702,500
Sonat Offshore Drilling, Inc. .. 100,000 1,775,000
Western Atlas, Inc.* ............ 887,300 33,384,663
-------------
45,337,163
-------------
UTILITY-GAS (0.1%)
Renaissance Energy Ltd.* ........ 100,000 1,933,702
-------------
TOTAL ENERGY (2.4%) ............ 82,953,365
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
TECHNOLOGY
OFFICE EQUIPMENT (0.1%)
Dell Computer Corp.* ............ 83,000 $ 3,403,000
-------------
ELECTRONICS (15.3%)
Advanced Micro Devices, Inc.* .. 83,300 2,072,088
Cisco Systems, Inc.*(a) ......... 2,138,000 75,097,250
EMC Corp.* ...................... 2,777,700 60,067,763
General Instrument Corp.* ...... 2,496,600 74,898,000
Intel Corp. ..................... 1,790,900 114,393,738
Motorola, Inc. .................. 2,356,600 136,388,225
Murata Manufacturing Co. Ltd. .. 85,000 3,283,994
Texas Instruments, Inc.(a) ..... 858,000 64,242,750
-------------
530,443,808
-------------
OFFICE EQUIPMENT SERVICES (0.5%)
Microsoft Corp.*(a) ............. 100,000 6,112,500
Silicon Graphics, Inc.* ......... 410,000 12,658,750
-------------
18,771,250
-------------
TELECOMMUNICATIONS (8.7%)
AirTouch Communications, Inc.* . 772,100 22,487,413
DSC Communications Corp.*(a) ... 1,600,000 57,400,000
MCI Communications Corp. ........ 1,656,000 30,429,000
Mannesmann AG (ADR) ............. 664,700 180,133,700
Qualcomm, Inc.* ................. 40,800 979,200
Rogers Cantel Mobile
Commmunications, Inc. (Class B)
(ADR)* ......................... 300,000 8,746,875
-------------
300,176,188
-------------
TOTAL TECHNOLOGY (24.6%) ...... 852,794,246
-------------
DIVERSIFIED
MISCELLANEOUS (2.7%)
Corning, Inc. ................... 100,000 2,987,500
Hanson PLC (ADR)--Warrants Class
B* ............................. 49,096,600 15,342,688
India Fund ...................... 640,000 6,800,000
Itel Corp.*++ ................... 1,803,317 62,439,841
Hutchison Whampoa ............... 250,000 1,011,309
-------------
TOTAL DIVERSIFIED (2.7%) ...... 88,581,338
-------------
TOTAL COMMON STOCKS (96.3%)
(Cost $3,199,154,012) .......... 3,338,515,069
-------------
PREFERRED STOCKS:
BASIC MATERIALS (0.3%)
STEEL
Bethlehem Steel Corp. $3.50
Conv.+ ......................... 215,700 10,677,150
-------------
CONSUMER CYCLICALS (0.8%)
AUTOS & TRUCKS
Chrysler Corp. $4.625 Conv.
Series A+ ...................... 215,700 29,281,275
-------------
TECHNOLOGY (0.5%)
OFFICE EQUIPMENT
Dell Computer Corp. 7.0% Conv.+ 96,000 16,512,000
-------------
TOTAL PREFERRED STOCKS (1.6%)
(Cost $53,244,086) ............. 56,470,425
-------------
</TABLE>
28
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - -----------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.1%)
PAPER
Stone Container Corp. 8.875%
Conv. Sub. Deb., 07/15/00 .. $ 2,950,000 $ 4,967,063
--------------
TECHNOLOGY (1.1%)
ELECTRONICS
General Instrument Corp. 5.0%
Conv., 06/15/00 ............. 27,130,000 36,286,375
--------------
TOTAL LONG-TERM DEBT SECURITIES (1.2%)
(Amortized Cost $40,988,727) 41,253,438
--------------
SHORT-TERM DEBT SECURITIES:
TIME DEPOSITS (0.4%)
Industrial Bank of Japan-N.Y.
5.875%, due 01/03/95 ........ 12,695,000 12,695,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (0.4%)
(Amortized Cost $12,695,000) 12,695,000
--------------
TOTAL INVESTMENTS (99.5%) (Cost/Amortized
Cost $3,306,081,825) 3,448,933,932
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS(B) VALUE (NOTE 1)
OPTIONS WRITTEN**:
<S> <C> <C>
- - ------------------------- ------------ ------------------
Cisco Systems, Inc.
January 30.165 Call* ... 2,000 $ (1,040,000)
DSC Communications Corp.:
February 34.375 Call* .. 1,000 (325,000)
February 31.25 Call* ... 1,000 (525,000)
Microsoft Corp. February
64.625 Call* ............ 1,000 (120,000)
Grupo Televisa S.A. (GDR)
January 45 Calls* ....... 2,000 (12,400)
Texas Instruments, Inc.:
March 77.375 Call* ...... 1,000 (412,500)
March 74.25 Call* ....... 2,000 (1,020,000)
January 75 Call* ........ 1,000 (270,000)
------------------
TOTAL OPTIONS WRITTEN (-0.1%) (Premiums
Received $4,512,479) (3,724,900)
------------------
CASH AND RECEIVABLES
LESS LIABILITIES (0.6%) 21,035,829
------------------
NET ASSETS (100.0%) ..... $3,466,244,861
==================
<FN>
* Non-income producing.
** Covered call option contracts written in connection with securities held.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers.
++ Affiliated company as defined under the Investment Company Act of 1940
(see Note 5).
(a) Partially held as collateral on outstanding written call options.
(b) One contract relates to 100 shares.
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (4.5%)
Akzo Nobel N.V. ................... 25,000 $ 2,886,468
Bayer ............................. 8,000 1,853,322
Dainippon Ink & Chemical, Inc. ... 200,000 979,428
Denki Kagaku Kogyo * .............. 97,000 401,044
European Vinyls Corp.
International N.V. * ............. 17,500 775,342
Indo Gulf Fertilizers (GDR) ...... 150,000 405,000
Lubrizol Corp. .................... 24,300 823,163
Mitsui Petrochemical Industries .. 220,000 1,942,800
OM Group, Inc. .................... 7,200 172,800
Riken Vinyl Industries Co. Ltd. .. 14,000 122,228
Sanyo Chemicals ................... 57,000 606,322
Shin-Etsu Chemical Ltd. ........... 100,000 1,986,954
Showa Denko * ..................... 250,000 875,564
Solvay Et Cie Societe Anonyme .... 5,000 2,379,092
Tessenderlo Chemie ................ 4,800 1,609,302
Union Carbide Corp. ............... 32,000 940,000
-------------
18,758,829
-------------
CHEMICALS --SPECIALTY (0.3%)
Great Lakes Chemical Corp. ........ 23,000 1,311,000
-------------
METALS & MINING (0.9%)
Biron Corp. ....................... 40,000 20,467
Eramet *+ ......................... 5,700 362,853
Hoganas AB, Series B *+ ........... 25,000 386,915
Johnson Matthey ................... 50,000 426,394
Kaiser Aluminium Corp. * .......... 40,000 435,000
RTZ Corp. ......................... 180,000 2,329,287
-------------
3,960,916
-------------
PAPER (1.5%)
Chuoh Pack Industries Ltd. ........ 6,000 72,253
Enso-Gutzeit, Series R ............ 124,000 1,065,337
Grupo Industrial Durango (ADR) * . 70,000 988,750
Jefferson Smurfit Corp. * ......... 15,600 265,200
Mayr-Melnhof Karton Aktien *+ .... 35,000 2,057,539
Oji Paper ......................... 186,000 1,959,860
-------------
6,408,939
-------------
STEEL (2.6%)
Acerinox S.A. ..................... 11,000 1,148,943
Bethlehem Steel Corp. * ........... 57,300 1,031,400
British Steel ..................... 1,300,000 3,127,544
Broken Hill Property .............. 28,650 434,890
Co. Siderurgica de Tub (ADS) *+ .. 18,700 495,550
Friedrich Krupp AG * .............. 4,300 593,812
Hanwa Co. --Warrants * ............ 60 3,000
Kawasaki Steel Corp.* ............. 414,000 1,732,444
National Steel Corp. * ............ 20,000 290,000
Nippon Steel Corp. ................ 300,000 1,128,951
Nippon Yakin Kogyo Co. * .......... 20,000 118,414
SSAB Svenskt Stal (Class B) ...... 20,000 874,764
-------------
10,979,712
-------------
TOTAL BASIC MATERIALS (9.8%) .... 41,419,396
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Powerscreen International ......... 410,000 $ 1,520,468
Tomra Systems ..................... 300,000 683,037
-------------
2,203,505
-------------
PRINTING, PUBLISHING
& BROADCASTING (4.4%)
Australian Provincial News ........ 10,000 12,171
British Sky Broadcasting
(ADR) * .......................... 25,000 600,000
Chris Craft Industries, Inc. * ... 12,130 418,485
Comcast Corp. (Class A) ........... 23,000 360,813
Donnelley (R.R.) & Sons Co. ...... 65,700 1,938,150
Oriental Press Group .............. 1,000,000 468,498
Reed International ................ 40,000 499,468
Singapore Press Holdings .......... 70,000 1,272,727
Sunshine Broadcasting Network .... 90,000 125,591
Tele-Communications, Inc.
(Class A) * ...................... 140,000 3,045,000
Time Warner, Inc. ................. 16,300 572,538
Toppan Printing Co. ............... 65,000 906,673
TVI Televisao Independente * ..... 6,000 42,997
United Newspapers PLC ............. 60,000 442,198
Ver Ned Uitgevers ................. 6,000 622,924
Viacom, Inc. (Class A) * .......... 3,040 126,540
Viacom, Inc. (Class B) * .......... 133,633 5,428,841
Wolters Kluwer .................... 23,151 1,712,631
-------------
18,596,245
-------------
PROFESSIONAL SERVICES (0.1%)
Automated Security Holdings * .... 153,125 155,742
Blenheim Exhibition Group ......... 62,000 232,834
-------------
388,576
-------------
TRUCKING, SHIPPING (1.7%)
Autostrade Conc E Costr-Priv ..... 210,000 266,108
Brambles Industries Ltd. .......... 60,000 573,065
Frans Maas Groep * ................ 13,500 420,007
Irish Continental Group ........... 145,442 945,859
Kamigumi Co. Ltd. ................. 41,000 436,126
Kawasaki Kisen Kaisho * ........... 120,000 481,686
Nedlloyd Groep N.V. * ............. 36,500 1,196,559
Unitor Ships Service .............. 55,000 926,978
Western Bulk Shipping + ........... 94,500 509,949
Yamato Transport .................. 100,000 1,234,320
-------------
6,990,657
-------------
TOTAL BUSINESS SERVICES (6.7%) .. 28,178,983
-------------
CAPITAL GOODS
BUILDING MATERIALS &
FOREST PRODUCTS (0.8%)
BPB Industries .................... 150,000 692,402
Carter Holt Harvey ................ 30,000 61,454
CHG Industries .................... 18,000 52,164
CHG Industries --Warrants * ...... 9,000 9,975
Fletcher Challenge ................ 120,000 281,922
Lafarge Coppee .................... 20,000 1,422,955
Lafarge Corp. ..................... 7,000 122,260
Macmillan Bloedel Ltd. ............ 40,000 502,584
Nichiha ........................... 5,000 93,327
</TABLE>
30
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Pacific Chemicals Berhad........... 50,000 $ 211,474
-------------
3,450,517
-------------
BUILDING & CONSTRUCTION (3.0%)
Bam Groep Holdings ................ 1,012 60,346
BBC Brown Boveri .................. 1,800 1,549,733
Boskalis Westminster .............. 5,000 101,977
Bufete Industrial S.A. (ADS) ..... 20,000 590,000
C-Cube Corp. ...................... 13,000 123,934
Fomento de Construcciones Y
Contratas S.A. ................... 1,200 117,409
Fukuda Corp. ...................... 60,000 740,592
Kanamoto Co. Ltd. ................. 28,600 594,099
Kaneshita Construction ............ 100,000 1,404,917
Kyosei Rentemu Co. Ltd. ........... 19,000 524,335
Macmahon Holdings Ltd. * .......... 2,000,000 914,795
Nichiei Construction .............. 20,000 226,794
Paul Y.-ITC Construction .......... 1,250,000 273,021
PS Corp. .......................... 47,400 899,007
Royal Plastics Group Ltd. *+ ..... 136,400 1,069,613
Sacos Corp. ....................... 23,200 602,990
Sekisui House --Warrants * ........ 20 3,750
Sho Bond Construction ............. 30,000 782,740
Sphinx ............................ 12,000 371,957
Suido Kiko Kaisha ................. 51,000 685,800
Toda Construction * ............... 77,000 687,707
Wesco, Inc. ....................... 12,000 411,841
-------------
12,737,357
-------------
ELECTRICAL EQUIPMENT (1.2%)
Alcatel Alsthom ................... 1,000 85,377
Alcatel Cable S.A. * .............. 20,000 1,644,636
Omron Corp. ....................... 85,000 1,569,493
Philips N.V. (ADR) ................ 3,000 88,125
Toshiba Corp. ..................... 130,000 943,201
Vae Eisenbahnsys .................. 4,183 475,698
-------------
4,806,530
-------------
MACHINERY (3.1%)
Caterpillar, Inc. ................. 23,000 1,267,875
Construcciones Auxiliar Ferro .... 9,425 508,326
Fanuc Co. ......................... 36,500 1,717,863
Hitachi Zosen ..................... 115,000 101,784
Jurong Shipyard ................... 18,000 138,319
Kalmar Industries AB *+ ........... 70,000 786,615
Keppel Corp. ...................... 140,000 1,191,081
Keyence Corp. ..................... 23,000 2,608,128
Mitsubishi Heavy Industries ...... 180,000 1,372,805
Namura Shipbuilding ............... 15,000 122,077
Siebe * ........................... 160,000 1,395,757
SMC Corp. ......................... 28,200 1,604,556
THK Co. Ltd. ...................... 600 15,173
Unidare ........................... 35,000 140,906
-------------
12,971,265
-------------
TOTAL CAPITAL GOODS (8.1%) ...... 33,965,669
-------------
CONSUMER CYCLICALS
AIRLINES (0.7%)
British Airways ................... 150,000 837,924
KLM * ............................. 90,000 2,208,926
-------------
3,046,850
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
APPAREL, TEXTILE (0.3%)
Chargeurs ......................... 4,000 $ 873,245
Tokyo Style Co. Ltd. .............. 22,000 373,106
-------------
1,246,351
-------------
AUTO RELATED (1.4%)
Autoliv AB (ADS) *+ ............... 11,850 454,744
Daikin Manufacturing .............. 62,000 1,306,573
Kasai Kogyo Co. ................... 29,000 175,193
Mabuchi Motors .................... 30,200 2,272,955
Minebea Co. ....................... 160,000 1,348,721
Pacific Dunlop .................... 63,500 168,853
-------------
5,727,039
-------------
AUTOS & TRUCKS (3.0%)
Chrysler Corp. .................... 85,800 4,204,200
General Motors Corp. .............. 83,000 3,506,750
Honda Motor Corp. ................. 58,000 1,030,206
Kia Motors Corp. (GDS) *+ ......... 16,800 285,600
M.A.N. AG ......................... 4,000 1,089,278
Mitsubishi Motors Corp. ........... 160,000 1,568,690
Volvo AB, Series B ................ 55,500 1,045,680
-------------
12,730,404
-------------
FOOD SERVICES, LODGING (0.4%)
AAPC Limited ...................... 1,500,000 883,785
ABR Holdings Ltd. ................. 120,000 63,396
Cafe de Coral ..................... 250,000 61,389
Ciga Hotel * ...................... 1,000,000 576,552
International Fast Food Corp. *+ . 8,000 18,000
International Pizza Corp. *+ ..... 32,700 53,138
International Pizza Corp.
--Warrants *+ .................... 32,700 8,175
Ryan Hotels PLC ................... 500,000 205,165
-------------
1,869,600
-------------
HOUSEHOLD FURNITURE, APPLIANCES (1.5%)
Atag Holdings * ................... 3,800 245,206
Industrie Natuzzi (ADR) ........... 57,500 1,955,000
Morishita Co. Ltd. ................ 13,000 166,984
Nippon Electric Glass * ........... 69,000 1,370,998
Noritz Co. ........................ 31,600 589,824
Sharp Corp. ....................... 70,000 1,264,425
Shimachu Co. ...................... 17,000 612,444
Videocon International Ltd. (GDR)
* ................................ 20,000 97,600
-------------
6,302,481
-------------
LEISURE RELATED (0.8%)
Genting Berhad .................... 44,000 377,364
Nelvana Limited *+ ................ 100,000 1,069,328
Polygram .......................... 25,000 1,162,365
Skis Rossignol .................... 400 149,036
Thorn EMI ......................... 25,000 404,879
-------------
3,162,972
-------------
PHOTO & OPTICAL (0.6%)
Eastman Kodak Co. ................. 25,600 1,222,400
Luxottica Group (ADR) ............. 36,000 1,228,500
-------------
2,450,900
-------------
</TABLE>
31
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Centros Comerciales Pryca SA * ... 8,000 $ 120,629
Centros Commerciales Continent * . 22,500 452,930
Charle Co. ........................ 6,000 136,076
Eidensha Co. Ltd. ................. 62,000 839,940
Elektra * ......................... 60,000 430,553
Fu Hui Jewellery * ................ 900,000 53,506
Heiton Holdings PLC ............... 581,428 612,198
Home Depot, Inc. .................. 25,000 1,150,000
Home Wide Corp. ................... 5,000 93,327
Ishiguro Homa ..................... 27,000 650,276
Matsuyadenki Co. Industries * .... 15,000 156,548
Mr. Max Corporation ............... 300 7,737
Nissen Corp. Ltd. ................. 39,480 1,220,255
Rinascente ........................ 200,000 1,124,740
Sato Corp. * ...................... 43,000 1,165,078
Sears Roebuck & Co. ............... 92,600 4,259,600
Shimamura Co. Ltd. ................ 32,000 1,605,620
Swank International Manufacturing 1,400,000 220,743
Swank International
Manufacturing --Warrants * ....... 120,000 4,653
Tsutsumi Jewelry Co. .............. 3,000 273,959
Xebio Co. ......................... 18,000 711,691
-------------
15,290,059
-------------
TOTAL CONSUMER CYCLICALS (12.3%) 51,826,656
-------------
CONSUMER NONCYCLICALS
BEVERAGES (0.3%)
Panamerican Beverages ............. 35,000 1,106,875
Whitbread Series A ................ 30,000 265,225
-------------
1,372,100
-------------
DRUGS (1.4%)
Astra AB, Series A ................ 60,000 1,550,352
Lilly (Eli) & Co. ................. 4,000 262,500
Merck & Co., Inc. ................. 32,000 1,220,000
Pfizer, Inc. ...................... 8,000 618,000
Roche Holdings AG Genusscheine ... 80 387,166
Santen Pharmaceutical Co. ......... 31,000 855,494
Schering AG ....................... 1,800 1,178,976
-------------
6,072,488
-------------
FOODS (0.7%)
Burns, Philip & Co. Ltd. .......... 140,000 331,032
Nestle AG --Registered ............ 500 476,318
Shriram Industrial
Enterprises Ltd. *+ .............. 55,000 1,540,000
Viscofan Envoltura ................ 30,000 455,779
-------------
2,803,129
-------------
HOSPITAL SUPPLIES & SERVICES (1.5%)
Abbott Laboratories, Inc. ......... 31,000 1,011,375
Guidant Corp. * ................... 40,000 640,000
Healthsource, Inc. * .............. 64,000 2,616,000
International Reagents ............ 3,000 27,095
Quest Medical, Inc. * ............. 49,543 260,101
United Healthcare Corp. ........... 26,500 1,195,813
U.S. Healthcare, Inc. ............. 18,000 742,500
-------------
6,492,884
-------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
RETAIL --FOOD (0.6%)
Argyll Group ...................... 25,000 $ 104,838
Family Mart Co. ................... 14,000 864,024
Kesko * ........................... 120,000 1,393,205
-------------
2,362,067
-------------
TOBACCO (1.0%)
Loews Corp. ....................... 25,800 2,241,375
Philip Morris Cos., Inc. .......... 33,000 1,897,500
-------------
4,138,875
-------------
TOTAL CONSUMER NONCYCLICALS (5.5%) 23,241,543
-------------
CREDIT SENSITIVE
BANKS (2.5%)
ABN Amro Holdings ................. 5,000 173,707
Akita Bank ........................ 58,000 462,720
Allied Irish Bank ................. 320,000 1,337,830
Allied Irish Bank --Warrants * ... 30,000 125,422
Australia & New Zealand Bank ..... 150,000 494,222
Banco Latinoamericano
de Exportaciones S.A. ............ 47,400 1,481,250
Banco Osorno Y La Union (ADR) * .. 15,000 161,250
Bancomer B Local .................. 300,000 144,121
Bancomer C Local .................. 995,000 540,000
Barclays Bank ..................... 80,000 764,224
Citicorp .......................... 13,500 558,562
Dao Heng Bank Group Ltd. .......... 81,000 230,307
Grupo Financiero Banorte
(Class C) ........................ 143,000 347,799
Hachijuni Bank .................... 40,000 473,658
Hock Hua Bank ..................... 150,000 452,320
HSBC Holding PLC .................. 62,000 669,078
Lloyds Bank PLC ................... 10,000 86,452
Overseas Union Bank ............... 188,400 1,098,730
Schweiz Bankverein ................ 500 138,273
Shawmut National Corp. ............ 10,000 163,750
Toho Bank ......................... 40,000 283,392
Yamanashi Chuo Bank ............... 24,000 267,336
-------------
10,454,403
-------------
FINANCIAL SERVICES (2.9%)
American Express Co. .............. 41,000 1,209,500
Americredit Corp. * ............... 326,700 1,960,200
Capital One Financial Corp. * .... 70,000 1,120,000
Credit Local de France ............ 12,000 858,266
Dean Witter Discover & Co. ........ 20,000 677,500
Franchise Finance Corp. of America 43,000 747,125
Govett & Co. ...................... 30,000 167,115
Hong Leong Finance ................ 160,000 456,672
Invesco ........................... 460,000 1,180,447
JCG Holdings ...................... 142,000 73,868
Mercury Finance Co. ............... 8,700 113,100
Nichiei Co. Ltd. .................. 15,000 963,372
Nomura Securities Co. ............. 7,000 145,409
Promise Co. Ltd. .................. 25,000 1,276,969
SBSI Holding PLC .................. 1,300 301,910
</TABLE>
32
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Student Loan Marketing
Association....................... 27,000 877,500
Yamaichi Securities ............... 59,000 446,422
-------------
12,575,375
-------------
INSURANCE (5.1%)
Acceptance Industries Cos.,
Inc. * ........................... 85,100 1,276,500
American International
Group, Inc. ...................... 57,500 5,635,000
CNA Financial Corp. * ............. 700 45,413
Dai Tokyo Fire & Marine ........... 25,000 182,137
General Re Corp. .................. 1,400 173,250
John Alden Financial Corp. ........ 99,200 2,852,000
MGIC Investment Corp. ............. 4,900 162,313
PennCorp Financial Group, Inc. ... 75,700 993,563
Progressive Corp. ................. 17,000 595,000
Pxre Corp. ........................ 32,100 906,825
TIG Holdings, Inc. ................ 43,000 806,250
Transnational Re Corp. * .......... 32,000 752,000
Travelers, Inc. ................... 126,000 4,095,000
Twentieth Century Industries, Inc. 254,000 2,667,000
USF&G Corp. ....................... 25,500 347,438
-------------
21,489,689
-------------
MORTGAGE RELATED (0.2%)
Federal National
Mortgage Association ............. 9,900 721,463
-------------
REAL ESTATE (3.4%)
AMLI Residential Property Trust .. 17,000 318,750
Associated Estates Realty Corp. .. 25,000 525,000
Avalon Properties, Inc. ........... 9,700 223,100
CBL & Associates Properties ...... 25,700 530,063
Cheung Kong Holdings .............. 180,000 732,795
Chubu Sekiwa Real Estate .......... 30,000 388,359
Columbus Realty Trust ............. 19,000 351,500
DBS Land .......................... 110,000 327,547
Essex Property Trust, Inc. ........ 32,800 496,100
First Capital Corp. ............... 50,000 168,096
First Industrial Realty Trust .... 8,000 156,000
Gables Residential Trust .......... 31,000 666,500
Highwoods Properties, Inc. ........ 16,000 346,000
JDN Realty Corporation ............ 13,000 260,000
JP Realty, Inc. ................... 76,300 1,602,300
Liberty Property Trust ............ 10,000 196,250
Macerich Co. ...................... 34,000 726,750
Manufactured Home Communities .... 30,000 596,250
Paragon Group, Inc. ............... 20,000 380,000
Regency Realty Corp. .............. 9,000 150,750
Saul Centers, Inc. ................ 26,000 383,500
Simon Property Group, Inc. ........ 14,000 339,500
Spieker Properties, Inc. .......... 22,200 452,325
Storage USA, Inc. ................. 35,000 962,500
Summit Properties ................. 41,000 789,250
Sun Communities, Inc. ............. 41,000 922,500
Tucker Properties, Corp. .......... 54,900 699,975
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Walden Residential Properties,
Inc. ............................. 27,900 $ 498,712
-------------
14,190,372
-------------
UTILITY --ELECTRIC (2.5%)
Chilectra S.A.+ ................... 10,000 500,000
Enersis S.A. (ADR) ................ 20,000 555,000
EVN ............................... 3,600 467,837
FECSA ............................. 80,000 424,786
Hidroelectrica del Cantabrico .... 8,000 218,774
Powergen PLC ...................... 800,000 6,697,130
Veba .............................. 5,000 1,732,004
-------------
10,595,531
-------------
UTILITY --GAS (0.0%)
ENRON Corp. ....................... 5,000 152,500
-------------
UTILITY --TELEPHONE (1.5%)
Atlantic Tele-Network * ........... 15,000 128,438
Empresas Telex-Chile S.A. (ADR) .. 20,000 212,500
Kon PTT Nederland + ............... 78,000 2,628,933
Philippine Long Distance
Telephone Co. .................... 12,500 689,063
Sprint Corp. ...................... 41,000 1,132,625
Stet D Risp Port .................. 120,000 284,515
Stet-Societa Finanziaria
Telefonica (ADR) ................. 64,000 188,641
Telefonica de Espana S.A. ......... 40,000 472,491
Telephone & Data Systems, Inc. ... 9,700 447,413
-------------
6,184,619
-------------
TOTAL CREDIT SENSITIVE (18.1%) .. 76,363,952
-------------
ENERGY
OIL --DOMESTIC (0.4%)
Anadarko Petroleum Corp. .......... 6,700 257,950
Apache Corp. ...................... 12,000 300,000
Enron Oil and Gas Co. ............. 16,600 311,250
XCL Corp. * ....................... 850,000 690,625
-------------
1,559,825
-------------
OIL --INTERNATIONAL (0.7%)
Ampolex Ltd. ...................... 312,000 841,735
Aran Energy PLC * ................. 500,000 336,421
Canadian Occidental ............... 5,000 112,500
Norsk Hydro AS .................... 34,600 1,360,692
Yukong Ltd. (GDR) *+ .............. 35,000 507,500
-------------
3,158,848
-------------
OIL --SUPPLIES & CONSTRUCTION (1.0%)
Baker Hughes, Inc. ................ 37,000 675,250
CHC Helicopter Corp. .............. 30,000 136,339
Coflexip (ADR)+ ................... 45,117 1,048,970
Energy Service, Inc. * ............ 36,000 441,000
Seagull Energy Corp. * ............ 25,000 478,125
Sonat Offshore Drilling, Inc. .... 10,000 177,500
Western Atlas, Inc. * ............. 32,100 1,207,763
-------------
4,164,947
-------------
TOTAL ENERGY (2.1%) .............. 8,883,620
-------------
ELECTRONICS (9.2%)
Alps Electric Co. * ............... 80,000 1,051,681
Casio Computer Co. Ltd. ........... 21,000 265,529
</TABLE>
33
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Cisco Systems, Inc. * ............. 110,000 $ 3,863,750
Disco Co. ......................... 6,000 188,460
EMC Corp. * ....................... 174,000 3,762,750
Fuji Electronics Co. .............. 39,000 1,084,094
Futaba Corp. ...................... 22,000 1,178,926
General Instrument Corp. * ........ 106,000 3,180,000
GP Batteries International ........ 50,000 137,500
Hirose Electric Co. Ltd. .......... 12,000 735,775
Innotech Corp. * .................. 2,100 91,460
Intel Corp. ....................... 60,000 3,832,500
Kokusai Electric .................. 2,000 38,535
Kyocera Corp. ..................... 18,000 1,334,872
Lasertec Corp. .................... 3,000 141,495
Motorola, Inc. .................... 45,400 2,627,525
Murata Manufacturing Co. Ltd. .... 38,000 1,468,138
NEC Corp. ......................... 109,000 1,246,964
Nikon Corp. ....................... 149,000 1,448,881
Rohm Co. Ltd. ..................... 70,000 2,964,375
Sensonar AS * ..................... 150,000 931,414
TDK Corp. ......................... 55,000 2,665,830
Techno Ryowa ...................... 4,000 86,302
Texas Instruments, Inc. ........... 5,500 411,813
Tokin Corp. ....................... 36,000 509,383
Tokyo Electron .................... 70,000 2,177,622
Tokyo Ohka Kogyo .................. 33,000 1,155,745
-------------
38,581,319
-------------
TECHNOLOGY
OFFICE EQUIPMENT (1.0%)
Canon Aptex, Inc. ................. 19,400 595,725
Canon, Inc. ....................... 147,000 2,493,026
Fujitsu Ltd. ...................... 97,000 983,141
Ricoh Elemex Corp. ................ 22,000 300,251
-------------
4,372,143
-------------
OFFICE EQUIPMENT SERVICES (0.5%)
Canon Sales ....................... 8,000 242,449
Computer Two Thousand ............. 800 211,661
Getronics N.V. .................... 20,333 741,539
Microsoft Corp. * ................. 4,300 262,838
Sidus Systems, Inc. *+ ............ 24,600 151,256
Silicon Graphics, Inc. * .......... 16,000 494,000
-------------
2,103,743
-------------
TELECOMMUNICATIONS (5.0%)
AirTouch Communications, Inc. * .. 80,000 2,330,000
BCE Mobile
Communications, Inc. * ........... 18,000 571,021
Bell Cablemedia PLC (ADR) * ...... 49,300 998,325
Cellular Communications
Puerto Rico, Inc. * .............. 7,600 254,600
DDI Corporation ................... 210 1,812,343
DSC Communications Corp. * ........ 53,600 1,922,900
Filtronic Comtek PLC * ............ 1,778,000 4,729,613
Kinseki ........................... 4,000 73,457
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Mannesmann AG ..................... 11,000 $ 2,981,318
Nihon Dempa Kogyo ................. 55,000 1,893,126
Qualcomm, Inc. * .................. 6,300 151,200
Rogers Cantel Mobile
Communications, Inc.
(Class B) * ...................... 20,000 588,130
Rogers Cantel Mobile
Communications, Inc.
(Class B) (ADR) * ................ 63,900 1,863,084
United States Cellular Corp. * ... 27,600 903,900
-------------
21,073,017
-------------
TOTAL TECHNOLOGY (15.7%) ......... 66,130,222
-------------
DIVERSIFIED
MISCELLANEOUS (1.0%)
Alba .............................. 9,300 394,203
Cie Generale des Eaux ............. 1,000 97,173
Corning, Inc. ..................... 18,000 537,750
Hanson Trust ...................... 300,000 1,083,198
Indonesia Fund, Inc. * ............ 25,000 306,250
International UNP Holdings *+ .... 450,000 304,759
International UNP Holdings
--Warrants *+ (a) ................ 225,000 41,704
James Crean PLC ................... 50,000 212,907
Renong Berhad ..................... 200,000 247,503
Taiwan Fund ....................... 32,200 929,775
Wembley Industries Holdings Berhad
* ................................ 100,000 151,165
-------------
TOTAL DIVERSIFIED (1.0%) ......... 4,306,387
-------------
TOTAL COMMON STOCKS (79.3%)
(Cost $333,186,074) .............. 334,316,428
-------------
PREFERRED STOCKS:
CAPITAL GOODS (0.1%)
MACHINERY
Gea AG * .......................... 1,280 408,041
-------------
CONSUMER CYCLICALS (0.2%)
AUTOS & TRUCKS
Bayer Moteren Werke AG ............ 2,726 981,582
-------------
CREDIT SENSITIVE (0.2%)
INSURANCE
Marschollek Lauten Partners ...... 1,600 856,968
-------------
TECHNOLOGY
OFFICE EQUIPMENT (0.2%)
Dell Computer Corp. +
7.00% Conv. ...................... 5,000 860,000
-------------
TELECOMMUNICATIONS (0.4%)
Nokia + ........................... 9,000 1,329,876
Nokia Oy Cum ...................... 2,000 294,684
-------------
1,624,560
-------------
TOTAL TECHNOLOGY (0.6%) .......... 2,484,560
-------------
TOTAL PREFERRED STOCKS (1.1%)
(Cost $2,717,170) ................ 4,731,151
-------------
</TABLE>
34
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE (0.0%)
UTILITY --GAS
Natural Gas Holdings Corp.
10.5% Conv., 10/14/97 ......... $ 100,000 $ 89,621
--------------
DIVERSIFIED (0.0%)
MISCELLANEOUS
Brierley Investment
9.0% Conv. Sub. Note, 06/30/98 27,900 18,396
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $67,950) ..... 108,017
--------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Allomon Funding Corp:
5.98%, due 01/04/95 ........... 2,000,000 1,998,671
6.1%, due 01/23/95 ............ 4,000,000 3,984,411
Copley Financing Corp.
6.08%, due 01/31/95 ........... 8,270,000 8,226,702
Ford Motor Credit Co.
5.85%, due 01/11/95 ........... 7,000,000 6,987,488
General Electric Capital Corp.
6.1%, due 02/28/95 ............ 5,000,000 4,950,014
Merrill Lynch & Co., Inc.
6.05%, due 01/25/95 ........... 5,000,000 4,978,993
Morgan Stanley Group Inc.
5.92%, due 01/12/95 ........... 7,500,000 7,485,200
SHORT-TERM DEBT SECURITIES (CONTINUED):
Preferred Receivables Funding
6.07%, due 02/02/95 ........... $5,000,000 $ 4,972,179
Premium Funding
5.95%, due 01/13/95 ........... 7,000,000 6,984,960
Sheffield Receivables Corp.
6.05%, due 01/18/95 ........... 5,000,000 4,984,875
U. S. Leasing Corp.
6.05%, due 01/31/95 ........... 1,700,000 1,691,143
WMC Finance:
6.15%, due 01/30/95 ........... 3,000,000 2,984,625
6.3%, due 03/24/95 ............ 5,300,000 5,225,461
Working Capital Management Corp.
6.12%, due 01/13/95 ........... 5,000,000 4,988,950
--------------
TOTAL COMMERCIAL PAPER (16.7%) 70,443,672
--------------
TIME DEPOSITS (0.8%)
Industrial Bank of Japan-N.Y.
5.875%, due 01/03/95 .......... 3,450,000 3,450,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (17.5%)
(Amortized Cost $73,891,228) . 73,893,672
--------------
TOTAL INVESTMENTS (97.9%)
(Cost/Amortized Cost $409,862,422) 413,049,268
CASH AND RECEIVABLES
LESS LIABILITIES (2.1%) ...... 8,649,015
--------------
NET ASSETS (100.0%) ............ $421,698,283
==============
</TABLE>
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
1933. These securities may only be resold to qualified institutional
buyers.
(a) Fair valued.
See Notes to Financial Statements.
35
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (0.5%)
STEEL
A.K. Steel Holding Corp.* ...... 305,500 $ 9,394,118
---------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (8.4%)
IVI Publishing, Inc.* ........... 230,900 2,655,350
Playboy Enterprises, Inc. (Class
B)* ............................ 434,100 4,558,050
Viacom, Inc. (Class B) * ........ 3,600,548 146,272,263
---------------
153,485,663
---------------
PROFESSIONAL SERVICES (4.1%)
ADT Ltd.* ....................... 3,636,600 39,093,450
ADVO Systems, Inc. .............. 941,175 16,235,269
Catalina Marketing Corp.* ...... 366,200 20,369,875
---------------
75,698,594
---------------
TRUCKING, SHIPPING (0.6%)
Airborne Freight Corp ........... 560,600 11,492,300
---------------
TOTAL BUSINESS SERVICES (13.1%) 240,676,557
---------------
CAPITAL GOODS (0.3%) ............
BUILDING MATERIALS & FOREST PRODUCTS
Universal Forest Products, Inc. 714,700 4,645,550
---------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (4.1%)
Tommy Hilfiger Corp.* ........... 581,600 26,244,700
Nine West Group, Inc.* .......... 1,331,700 37,786,988
Phillips Van Heusen Corp. ...... 747,900 11,405,475
---------------
75,437,163
---------------
AUTO RELATED (1.1%)
Superior Industries
International, Inc. ............ 772,400 20,372,050
---------------
FOOD SERVICES, LODGING (1.7%)
Hospitality Franchise Systems,
Inc.* .......................... 831,700 22,040,050
Host Marriott Corp.* ............ 953,500 9,177,438
---------------
31,217,488
---------------
HOUSEHOLD FURNITURE, APPLIANCES (4.0%)
Ethan Allen Interiors, Inc.* ... 415,800 10,083,150
Heilig Meyers Co. ............... 884,187 22,325,722
Industrie Natuzzi (ADR) ......... 1,184,300 40,266,200
---------------
72,675,072
---------------
LEISURE RELATED (5.7%)
CUC International, Inc.* ........ 2,321,300 77,763,550
Heritage Media Corp. (Class
A)*++ .......................... 798,050 21,447,594
Marker International * .......... 279,500 2,096,250
Savoy Pictures Entertainment,
Inc.* .......................... 356,800 2,319,200
---------------
103,626,594
---------------
RETAIL-GENERAL (5.0%)
Bombay Co., Inc.*++ ............. 2,445,100 24,756,638
Home Shopping Network, Inc.* ... 1,194,700 11,947,000
Office Depot, Inc.* ............. 2,313,025 55,512,600
92,216,238
---------------
TOTAL CONSUMER CYCLICALS (21.6%) 395,544,605
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
CONSUMER NONCYCLICALS ...........
HOSPITAL SUPPLIES & SERVICES (12.6%)
Bard (C.R.), Inc. ............... 655,700 $ 17,703,900
Boston Scientific Corp.* ........ 2,553,900 44,374,013
Coastal Healthcare Group* ...... 567,800 15,543,525
Guidant Corp.* .................. 751,000 12,016,000
Healthwise of America, Inc.*++ . 477,135 15,745,455
Incontrol, Inc.* ................ 385,000 3,946,250
National Health Laboratories
Holdings, Inc. ................. 4,032,000 53,424,000
Saint Jude Medical, Inc. ........ 518,900 20,626,275
Sun Healthcare Group, Inc.* .... 769,300 19,520,988
Surgical Care Affiliates, Inc. . 1,377,600 27,896,400
---------------
TOTAL CONSUMER NONCYCLICALS (12.6%) 230,796,806
---------------
CREDIT SENSITIVE
BANKS (3.9%)
Mellon Bank Corp. ............... 2,341,663 71,713,429
---------------
FINANCIAL SERVICES (0.5%)
Edwards (A.G.), Inc. ............ 545,725 9,823,050
---------------
INSURANCE (4.2%)
CNA Financial Corp.* ............ 1,174,900 76,221,638
---------------
TOTAL CREDIT SENSITIVE (8.6%) . 157,758,117
---------------
ENERGY
COAL & GAS PIPELINES (0.7%)
Cabot Oil and Gas Corp. (Class
A) ............................. 436,700 6,332,150
Questar Corp. ................... 259,800 7,144,500
---------------
13,476,650
---------------
OIL--DOMESTIC (4.4%)
Diamond Shamrock, Inc. .......... 1,391,800 36,012,825
Louisiana Land & Exploration
Corp. .......................... 366,200 13,320,525
Nuevo Energy Company*++ ......... 742,700 13,368,600
Snyder Oil Corp. ................ 464,100 6,903,488
Tosco Corp. ..................... 345,000 10,048,125
---------------
79,653,563
---------------
OIL--INTERNATIONAL (0.5%)
Arethusa Ltd.* .................. 740,800 8,287,700
---------------
OIL--SUPPLIES & CONSTRUCTION (6.9%)
BJ Services Co. ................. 317,200 5,352,750
Coflexip (ADR)+++ ............... 799,600 18,590,700
Global Marine, Inc.*++ .......... 10,118,700 36,680,287
Noble Drilling Corp.* ........... 2,603,300 15,294,388
Reading & Bates Corp.* .......... 1,122,800 6,736,800
Rowan Cos., Inc.*++ ............. 5,847,900 35,818,388
Sonat Offshore Drilling, Inc. .. 477,600 8,477,400
---------------
126,950,713
---------------
TOTAL ENERGY (12.5%) ........... 228,368,626
---------------
TECHNOLOGY
OFFICE EQUIPMENT (0.7%)
Symantec Corp* .................. 698,200 12,218,500
---------------
ELECTRONICS (11.1%)
Altera Corp.* ................... 185,400 7,763,625
American Superconductor Corp.*++ 605,700 14,991,075
Applied Materials, Inc.* ........ 386,100 16,312,725
</TABLE>
36
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Bay Networks, Inc.* ............. 387,367 $ 11,427,327
Cisco Systems, Inc.* ............ 491,000 17,246,375
EMC Corp.* ...................... 2,624,800 56,761,300
Lam Research Corp.* ............. 376,300 14,017,175
LSI Logic Corp.* ................ 149,000 6,015,875
Sensormatic Electronics Corp. .. 1,641,850 59,106,600
--------------
203,642,077
--------------
OFFICE EQUIPMENT SERVICES (0.8%)
Informix Corp.* ................. 68,700 2,206,988
Lotus Development Corp.* ........ 312,600 12,816,600
--------------
15,023,588
--------------
TELECOMMUNICATIONS (14.5%)
American Satellite Network
--Warrants* .................... 49,450 0
BCE Mobile Communications, Inc.* 635,400 20,157,049
Cellular Communications, Inc.
(Class A)* ..................... 994,600 53,211,100
DSC Communications Corp.* ...... 382,300 13,715,013
MFS Communication, Inc.* ........ 302,600 9,910,150
Mannesmann AG (ADR) ............. 234,500 63,549,500
Millicom International Cellular
S.A.* .......................... 820,115 24,705,964
Qualcomm, Inc.* ................. 465,000 11,160,000
Scientific Atlanta, Inc. ........ 1,941,600 40,773,600
United States Cellular Corp.* .. 623,800 20,429,450
Vanguard Cellular Systems, Inc.
(Class A)* ..................... 336,150 8,655,863
--------------
266,267,689
--------------
TOTAL TECHNOLOGY (27.1%) ...... 497,151,854
--------------
TOTAL COMMON STOCKS (96.3%)
(Cost $1,513,870,744) .......... 1,764,336,233
--------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Berkley Funding Corp. 6.05%,
due 01/04/95 ................. $10,722,000 $ 10,714,793
Copley Financing Corp. 6.08%,
due 01/31/95 ................. 10,000,000 9,947,644
Morgan Stanley Group, Inc.
5.92%, due 01/12/95 .......... 10,000,000 9,980,267
Triple A Funding 6.00%, due
01/04/95 ..................... 5,500,000 5,496,333
---------------
TOTAL COMMERCIAL PAPER (2.0%) 36,139,037
---------------
TIME DEPOSITS (1.0%)
Industrial Bank of Japan--N.Y.
5.875%, due 01/03/95 ......... 19,400,000 19,400,000
---------------
U.S. GOVERNMENT (0.3%)
Federal Home Loan Bank 5.75%,
due 01/10/95 ................. 5,000,000 4,992,014
---------------
TOTAL SHORT-TERM DEBT SECURITIES (3.3%)
(Amortized Cost $60,531,051) 60,531,051
---------------
TOTAL INVESTMENTS (99.6%) (Cost/Amortized
Cost $1,574,401,795) 1,824,867,284
CASH AND RECEIVABLES LESS
LIABILITIES (0.4%) ........... 7,296,996
---------------
NET ASSETS (100.0%) ........... $1,832,164,280
===============
- - ---------------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold to qualified institutional
buyers.
++ Affiliated company as defined under the Investment Company Act of 1940
(see Note 5).
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.5%)
Hercules, Inc. .................. 7,000 $ 807,625
METALS & MINING (0.4%)
Aluminum Co. of America ......... 8,000 693,000
---------------
PAPER (0.3%)
International Paper Co. ......... 8,000 603,000
---------------
CHEMICALS--SPECIALTY (0.1%)
Morton International, Inc. ..... 8,000 228,000
---------------
TOTAL BASIC MATERIALS (1.3%) .. 2,331,625
---------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
WMX Technologies, Inc. .......... 5,000 131,250
---------------
PRINTING, PUBLISHING &
BROADCASTING (0.2%)
Capital Cities ABC, Inc. ........ 4,000 341,000
---------------
PROFESSIONAL SERVICES (0.7%)
First Financial Management Corp. 10,000 616,250
Reynolds & Reynolds Co. ......... 25,000 625,000
---------------
1,241,250
---------------
TOTAL BUSINESS SERVICES (1.0%) 1,713,500
---------------
CAPITAL GOODS
ELECTRICAL EQUIPMENT (0.7%)
General Electric Co. ............ 25,000 1,275,000
---------------
MACHINERY (0.6%)
Caterpillar, Inc. ............... 15,000 826,875
Deere & Co. ..................... 2,000 132,500
---------------
959,375
---------------
TOTAL CAPITAL GOODS (1.3%) .... 2,234,375
---------------
CONSUMER CYCLICALS
AUTO RELATED (0.2%)
Lancaster Colony Corp. .......... 9,333 274,157
---------------
RETAIL--GENERAL (0.3%)
Penney (J.C.), Inc. ............. 12,000 535,500
---------------
TOTAL CONSUMER CYCLICALS (0.5%) 809,657
---------------
CONSUMER NONCYCLICALS
BEVERAGES (0.3%)
Coca-Cola Co. ................... 10,000 515,000
---------------
FOODS (0.3%)
IBP, Inc. ....................... 18,000 544,500
---------------
HOSPITAL SUPPLIES & SERVICES (0.6%)
Columbia HCA Healthcare Corp. .. 8,000 292,000
Medtronic, Inc. ................. 12,000 667,500
---------------
959,500
---------------
SOAPS & TOILETRIES (0.7%)
Gillette Corp. .................. 16,000 1,196,000
---------------
TOBACCO (0.7%)
Philip Morris Cos., Inc. ........ 20,000 1,150,000
UST, Inc. ....................... 8,000 222,000
---------------
1,372,000
---------------
TOTAL CONSUMER NONCYCLICALS (2.6%) 4,587,000
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - -------------------------------- ------------ ---------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
CREDIT SENSITIVE
BANKS (0.9%)
Bank of New York Co. ............ 35,000 $ 1,015,000
Citicorp ........................ 8,000 331,000
First Bank Systems .............. 5,000 166,250
---------------
1,512,250
---------------
FINANCIAL SERVICES (0.2%)
American Express Co. ............ 12,000 354,000
---------------
INSURANCE (0.5%)
AFLAC, Inc. ..................... 25,000 800,000
---------------
MORTGAGE RELATED (0.1%)
Federal Home Loan
Mortgage Corp. ................. 3,000 151,500
---------------
UTILITY--GAS (0.3%)
ENRON Corp. ..................... 18,000 549,000
---------------
UTILITY--TELEPHONE (0.4%)
Ameritech Corp. ................. 12,000 484,500
Sprint Corp. .................... 10,000 276,250
---------------
760,750
---------------
TOTAL CREDIT SENSITIVE (2.4%) . 4,127,500
---------------
ENERGY
COAL & GAS PIPELINES (0.2%)
Sonat, Inc. ..................... 15,000 420,000
---------------
OIL--DOMESTIC (0.4%)
Amoco Corp. ..................... 4,000 236,500
Phillips Petroleum Co. .......... 15,000 491,250
---------------
727,750
---------------
OIL--INTERNATIONAL (0.4%)
Mobil Corp. ..................... 6,000 505,500
---------------
TOTAL ENERGY (1.0%) ............ 1,653,250
---------------
TECHNOLOGY
ELECTRONICS (0.5%)
Molex, Inc. ..................... 12,000 414,000
Motorola, Inc. .................. 8,000 463,000
---------------
TOTAL TECHNOLOGY (0.5%) ........ 877,000
---------------
DIVERSIFIED (0.1%)
MISCELLANEOUS
Allied Signal, Inc. ............. 8,000 272,000
---------------
TOTAL COMMON STOCKS (10.7%)
(Cost $17,712,457) ............. 18,605,907
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE
BANKS (7.4%)
Abbey National Treasury Services
6.375% Floater, 03/10/99 ....... $4,800,000 4,786,560
BankAmerica Corp. 7.2%, 04/15/06 3,250,000 2,885,708
Chemical Banking Corp. 7.875%,
07/15/06 ....................... 3,500,000 3,284,190
Citicorp 8.0%, 02/01/03 ......... 2,000,000 1,928,320
---------------
12,884,778
---------------
</TABLE>
38
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1994
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- - --------------------------------- ------------ ---------------
LONG-TERM DEBT SECURITIES (CONTINUED):
FINANCIAL SERVICES (3.6%)
Ford Credit Auto Loan
Master Trust
5.625% Series 92-3A, 10/15/95 .. $ 3,500,000 $ 3,449,670
Lehman Brothers Holdings, Inc.
Zero Coupon Medium Term Note,
02/10/96 ........................ 2,900,000 2,776,750
---------------
6,226,420
---------------
MORTGAGE RELATED (10.7%)
Government National Mortgage
Association:
7.5%, 09/15/22 .................. 4,909,581 4,552,105
7.0%, 05/15/23 .................. 994,472 891,918
7.0%, 10/15/23 .................. 808,863 725,449
7.0%, 11/15/23 .................. 181,645 162,913
7.5%, 01/15/24 .................. 4,850,557 4,497,379
7.0%, 02/15/24 .................. 3,942,768 3,536,170
8.0%, 03/15/24 .................. 4,408,834 4,213,192
---------------
18,579,126
---------------
UTILITY--ELECTRIC (1.4%)
Commonwealth Edison 8.125%,
06/01/07 ........................ 2,700,000 2,474,739
---------------
U.S. GOVERNMENT (22.8%)
U.S. Treasury 7.5% Bond, 11/15/24 41,470,000 39,642,707
---------------
TOTAL CREDIT SENSITIVE (45.9%) . 79,807,770
---------------
TOTAL LONG-TERM DEBT SECURITIES (45.9%)
(Amortized Cost $82,411,137) ... 79,807,770
---------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Allomon Funding Corp. 5.9%, due
01/27/95 ........................ 4,000,000 3,982,300
Barton Capital Corp. 6.05%, due
01/10/95 ........................ 3,015,000 3,009,933
Equipment Funding, Inc. 6.05%,
due 01/09/95 .................... 3,000,000 2,995,462
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - --------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (CONTINUED):
Ford Motor Credit Co. 5.85%, due
01/11/95 ........................ $ 4,700,000 $ 4,691,599
General Electric Capital Corp.
6.1%, due 02/28/95 .............. 5,000,000 4,950,014
Goldman Sachs & Co. 6.0%, due
02/02/95 ........................ 5,300,000 5,270,850
International Securitization
6.1%, due 01/17/95 .............. 6,175,000 6,157,213
Merrill Lynch & Co., Inc. 6.05%,
due 01/25/95 .................... 3,000,000 2,987,396
October Corp. 6.1%, due 01/27/95 2,500,000 2,488,562
Philip Morris Capital Corp.
5.85%, due 01/05/95 ............. 5,000,000 4,995,938
Preferred Receivables Funding
6.07%, due 02/02/95 ............. 5,000,000 4,972,179
Premium Funding 5.9%, due
01/10/95 ........................ 6,000,000 5,990,167
Sheffield Receivables Corp.
6.07%, due 02/21/95 ............. 3,700,000 3,667,559
Three River Funding 6.1%, due
01/20/95 ........................ 6,000,000 5,979,667
Working Capital Management Corp.
6.1%, due 01/18/95 .............. 5,900,000 5,882,005
---------------
TOTAL COMMERCIAL PAPER (39.2%) 68,020,844
---------------
TIME DEPOSITS (4.0%)
Industrial Bank of Japan--N.Y.
5.875%, due 01/03/95 ............ 6,870,000 6,870,000
---------------
TOTAL SHORT-TERM DEBT SECURITIES (43.2%)
(Amortized Cost $74,890,844) ... 74,890,844
---------------
TOTAL INVESTMENTS (99.8%) ........
(Cost/Amortized Cost $175,014,438) 173,304,521
CASH AND RECEIVABLES LESS
LIABILITIES (0.2%) .............. 386,789
---------------
NET ASSETS (100.0%) .............. $173,691,310
===============
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.8%)
Akzo Nobel N.V. ................. 3,500 $ 404,106
Bayer ........................... 1,000 231,665
CNT Group ....................... 700,000 47,948
Dainippon Ink & Chemical, Inc. . 36,000 176,297
European Vinyls Corp.
International N.V.* ............ 6,100 270,262
Hercules, Inc. .................. 50,000 5,768,750
Indo Gulf Fertilizers (GDR) .... 50,000 135,000
Mitsui Petrochemical Industries 30,000 264,927
OM Group, Inc. .................. 3,500 84,000
Osaka Organic Chemical
Industries ..................... 1,000 12,042
Riken Vinyl Industries Co. Ltd. 7,000 61,114
Sanyo Chemicals ................. 14,000 148,921
Shin-Etsu Chemical Ltd. ......... 15,000 298,043
Showa Denko * ................... 35,000 122,579
Solvay Et Cie Societe Anonyme .. 600 285,491
Tessenderlo Chemie .............. 1,900 637,016
---------------
8,948,161
---------------
CHEMICALS--SPECIALTY (0.5%)
Morton International, Inc. ..... 80,000 2,280,000
---------------
METALS & MINING (1.6%)
Aluminum Co. of America ......... 80,000 6,930,000
Biron Corp. ..................... 80,000 40,933
Eramet*+ ........................ 1,050 66,841
Gwalia Consolidated ............. 95,800 131,456
Hoganas AB, Series B*+ .......... 15,000 232,149
Miramar Mining Corp.* ........... 26,000 111,210
Prime Resource Group* ........... 23,000 166,013
Renison Goldfields* ............. 38,000 144,352
RTZ Corp. ....................... 20,000 258,810
---------------
8,081,764
---------------
PAPER (1.4%)
Enso-Gutzeit, Series R .......... 30,000 257,743
Grupo Industrial Durango (ADR)* 12,000 169,500
International Paper Co. ......... 80,000 6,030,000
Mayr-Melnhof Karton Aktien*+ ... 6,000 352,721
Oji Paper ....................... 24,000 252,885
---------------
7,062,849
---------------
STEEL (0.8%)
Acerinox S.A. ................... 1,500 156,674
British Steel ................... 100,000 240,580
Co. Siderurgica de Tub (ADS)*+ . 4,000 106,000
Friedrich Krupp AG* ............. 300 41,429
Hanwa Co.--Warrants* ............ 40 2,000
Kawasaki Steel Corp.* ........... 70,000 292,925
Nippon Steel Corp. .............. 40,000 150,527
Nucor Corp. ..................... 40,000 2,220,000
SSAB Svenskt Stal (Class B) .... 5,000 218,691
---------------
3,428,826
---------------
TOTAL BASIC MATERIALS (6.1%) .. 29,801,600
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Powerscreen International ...... 65,000 $ 241,050
Tomra Systems ................... 120,000 273,215
WMX Technologies, Inc. .......... 50,000 1,312,500
---------------
1,826,765
---------------
PRINTING, PUBLISHING & BROADCASTING (0.9%)
Australian Provincial News ..... 10,000 12,171
Capital Cities ABC, Inc. ........ 40,000 3,410,000
Central European Media
Entertainment Ltd.* ............ 2,200 30,800
General Media, Inc.--Warrants* . 700 10,500
Oriental Press Group ............ 200,000 93,700
Reed International .............. 5,000 62,434
Singapore Press Holdings ........ 9,000 163,636
Sunshine Broadcasting Network .. 27,000 37,677
Toppan Printing Co. ............. 8,000 111,591
United Newspapers PLC ........... 15,000 110,550
Ver Ned Uitgevers ............... 1,000 103,821
Wolters Kluwer .................. 5,030 372,102
---------------
4,518,982
---------------
PROFESSIONAL SERVICES (1.8%)
Automated Security Holdings* ... 51,041 51,913
Blenheim Exhibition Group ...... 25,000 93,885
First Financial Management Corp. 60,000 3,697,500
Reynolds & Reynolds Co. ......... 200,000 5,000,000
---------------
8,843,298
---------------
TRUCKING, SHIPPING (0.2%)
Autostrade Conc E Costr-Priv. .. 105,000 133,054
Brambles Industries Ltd. ........ 15,000 143,266
Irish Continental Group ......... 24,000 156,080
Kawasaki Kisen Kaisho* .......... 20,000 80,281
Nedlloyd Groep N.V.* ............ 8,000 262,260
Unitor Ships Service ............ 7,000 117,979
Western Bulk Shipping+ .......... 31,500 169,983
Yamato Transport ................ 17,000 209,834
---------------
1,272,737
---------------
TOTAL BUSINESS SERVICES (3.3%) 16,461,782
---------------
CAPITAL GOODS ...................
BUILDING MATERIALS & FOREST PRODUCTS (0.1%)
Carter Holt Harvey .............. 20,000 40,970
C.I. Holdings BHD ............... 22,000 79,264
Fletcher Challenge .............. 30,000 70,481
Lafarge Coppee .................. 3,000 213,443
Lafarge Corp. ................... 3,000 52,397
Macmillan Bloedel Ltd. .......... 5,000 62,823
---------------
519,378
---------------
BUILDING & CONSTRUCTION (0.6%)
BBC Brown Boveri ................ 350 301,337
Bufete Industrial S.A. (ADS) ... 2,700 79,650
Chloride Group .................. 230,000 82,775
</TABLE>
40
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Fukuda Corp. .................... 16,000 $ 197,491
Kanamoto Co. Ltd. ............... 6,500 135,023
Kaneshita Construction .......... 20,000 280,983
Kyosei Rentemu Co. Ltd. ......... 3,000 82,790
Macmahon Holdings Ltd.* ......... 800,000 365,918
Ohmori .......................... 4,000 76,267
Paul Y.-ITC Construction ........ 450,000 98,288
PS Corp. ........................ 10,000 189,664
Royal Plastics Group Ltd.*+ .... 26,500 207,806
Sacos Corp. ..................... 5,700 148,149
Sho Bond Construction ........... 5,000 130,457
Sphinx .......................... 6,000 185,978
Suido Kiko Kaisha ............... 7,000 94,129
Toda Construction* .............. 6,000 53,588
Wesco, Inc. ..................... 4,000 137,280
---------------
2,847,573
---------------
ELECTRICAL EQUIPMENT (1.6%)
Alcatel Cable S.A.* ............. 2,000 164,464
General Electric Co. ............ 140,000 7,140,000
Omron Corp. ..................... 12,000 221,576
Philips N.V. (ADR) .............. 3,000 88,125
Toshiba Corp. ................... 10,000 72,554
Vae Eisenbahnsys ................ 1,633 185,708
---------------
7,872,427
---------------
MACHINERY (2.2%)
Caterpillar, Inc. ............... 140,000 7,717,500
Construcciones Auxiliar Ferro .. 3,000 161,802
Deere & Co. ..................... 20,000 1,325,000
Fanuc Co. ....................... 6,000 282,388
Kalmar Industries AB*+ .......... 12,000 134,848
Keppel Corp. .................... 23,000 195,678
Keyence Corp. ................... 3,600 408,229
Mitsubishi Heavy Industries .... 10,000 76,267
SMC Corp. ....................... 5,500 312,945
Van Der Horst * ................. 10,000 30,738
---------------
10,645,395
---------------
TOTAL CAPITAL GOODS (4.5%) .... 21,884,773
---------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
British Airways ................. 25,000 139,654
KLM* ............................ 15,000 368,154
---------------
507,808
---------------
AUTO RELATED (0.6%)
Autoliv AB (ADS)*+ .............. 3,000 115,125
Daikin Manufacturing ............ 8,000 168,590
Lancaster Colony Corp. .......... 80,000 2,350,000
Mabuchi Motors .................. 4,500 338,685
Minebea Co. ..................... 20,000 168,590
Pacific Dunlop .................. 21,000 55,841
---------------
3,196,831
---------------
AUTOS & TRUCKS (1.3%)
Autozone, Inc.* ................. 50,000 1,212,500
Chrysler Corp. .................. 50,000 2,450,000
Harley Davidson, Inc. ........... 80,000 2,240,000
Honda Motor Corp. ............... 8,000 142,097
Kia Motors Corp. (GDS)*+ ........ 6,000 102,000
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Mitsubishi Motors Corp. ......... 25,000 $ 245,108
Volvo AB, Series B .............. 5,500 103,626
---------------
6,495,331
---------------
FOOD SERVICES, LODGING (0.1%)
AAPC Limited .................... 400,000 235,676
ABR Holdings Ltd. ............... 20,000 10,566
Ciga Hotel* ..................... 50,000 28,828
International Pizza Corp.*+ .... 16,400 26,650
International Pizza
Corp.--Warrants*+ .............. 16,400 4,100
---------------
305,820
---------------
HOUSEHOLD FURNITURE, APPLIANCES (0.3%)
Atag Holdings* .................. 1,300 83,886
Industrie Natuzzi (ADR) ......... 15,000 510,000
Maax, Inc.* ..................... 25,800 190,822
Morishita Co. Ltd. .............. 11,000 141,295
Nippon Electric Glass* .......... 9,000 178,826
Noritz Co. ...................... 1,400 26,131
Sharp Corp. ..................... 10,000 180,632
Shimachu Co. .................... 3,000 108,078
---------------
1,419,670
---------------
LEISURE RELATED (0.4%)
CUC International, Inc.* ........ 50,000 1,675,000
Genting Berhad .................. 15,000 128,647
Nelvana Limited*+ ............... 18,000 192,479
Skis Rossignol .................. 200 74,518
Thorn EMI ....................... 6,765 109,560
---------------
2,180,204
---------------
PHOTO & OPTICAL (0.0%)
Luxottica Group (ADR) ........... 7,000 238,875
---------------
RETAIL--GENERAL (3.8%)
Centros Commerciales Continent* 7,500 150,977
Dollar General Corp. ............ 140,000 4,200,000
Eidensha Co. Ltd. ............... 15,000 203,211
Elektra* ........................ 16,000 114,814
Fu Hui Jewellery* ............... 400,000 23,780
Hanshin Department Stores* ..... 2,000 14,150
Heiton Holdings PLC ............. 157,142 165,458
Ishiguro Homa ................... 7,000 168,590
Matsuyadenki Co. Industries* ... 7,000 73,056
Nissen Corp. Ltd. ............... 6,000 185,449
Nordstrom, Inc. ................. 80,000 3,360,000
Office Depot, Inc.* ............. 180,000 4,320,000
Penney (J.C.), Inc. ............. 100,000 4,462,500
Rinascente ...................... 35,000 196,829
Sato Corp.* ..................... 7,000 189,664
Shimamura Co. Ltd. .............. 5,000 250,878
Swank International
Manufacturing .................. 500,000 78,837
Swank International
Manufacturing--Warrants* ....... 80,000 3,102
Xebio Co. ....................... 2,800 110,707
---------------
18,272,002
---------------
TOTAL CONSUMER CYCLICALS (6.6%) 32,616,541
---------------
</TABLE>
41
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
BEVERAGES (1.1%)
Coca-Cola Co. ................... 100,000 $ 5,150,000
Panamerican Beverages ........... 2,000 63,250
Whitbread Series A .............. 5,000 44,204
---------------
5,257,454
---------------
CONTAINERS (0.0%)
Intertape Polymer ............... 3,000 47,585
---------------
DRUGS (0.1%)
Astra AB, Series A .............. 15,000 387,588
Roche Holdings AG Genusscheine . 20 96,791
Santen Pharmaceutical Co. ...... 6,000 165,580
Schering AG ..................... 90 58,949
---------------
708,908
---------------
FOODS (1.0%)
IBP, Inc. ....................... 160,000 4,840,000
Shriram Industrial Enterprises
Ltd.*+ ......................... 8,000 224,000
Viscofan Envoltura .............. 6,000 91,156
---------------
5,155,156
---------------
HOSPITAL SUPPLIES & SERVICES (2.6%)
Columbia HCA Healthcare Corp. .. 60,000 2,190,000
Medtronic, Inc. ................. 120,000 6,675,000
Tamro Group* .................... 20,000 92,880
United Healthcare Corp. ......... 80,000 3,610,000
---------------
12,567,880
---------------
RETAIL--FOOD (0.1%)
Argyll Group .................... 5,000 20,968
Family Mart Co. ................. 2,000 123,432
Kesko* .......................... 30,500 354,106
---------------
498,506
---------------
SOAPS & TOILETRIES (2.4%)
Gillette Corp. .................. 160,000 11,960,000
---------------
TOBACCO (2.6%)
Philip Morris Cos., Inc. ........ 180,000 10,350,000
UST, Inc. ....................... 80,000 2,220,000
---------------
12,570,000
---------------
TOTAL CONSUMER NONCYCLICALS (9.9%) 48,765,489
---------------
CREDIT SENSITIVE
BANKS (3.5%)
Akita Bank ...................... 6,000 47,868
Allied Irish Bank ............... 85,000 355,361
Australia & New Zealand Bank ... 50,000 164,741
Banco Latinoamericano de
Exportaciones S.A. ............. 9,500 296,875
Banco Osorno Y La Union (ADR)* . 16,200 174,150
Bancomer B Local ................ 50,000 24,020
Bank of New York Co. ............ 330,000 9,570,000
Barclays Bank ................... 15,000 143,292
Citicorp ........................ 100,000 4,137,500
Dao Heng Bank Group Ltd. ........ 68,000 193,344
First Bank Systems .............. 40,000 1,330,000
Grupo Financiero Banorte (Class
C) ............................. 18,000 43,779
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
Hock Hua Bank ................... 40,000 $ 120,619
HSBC Holding PLC ................ 12,000 129,499
International Bank of Asia ..... 270,000 95,089
Overseas Union Bank ............. 20,000 116,638
Schweiz Bankverein .............. 270 74,668
Toho Bank ....................... 7,000 49,594
Yamanashi Chuo Bank ............. 4,000 44,556
---------------
17,111,593
---------------
FINANCIAL SERVICES (0.6%)
American Express Co. ............ 60,000 1,770,000
Hong Leong Finance .............. 50,000 142,710
Invesco ......................... 100,000 256,619
JCG Holdings .................... 60,000 31,212
MBF Finance ..................... 10,000 10,495
Nichiei Co. Ltd. ................ 3,000 192,674
Nomura Securities Co. ........... 2,000 41,545
Promise Co. Ltd. ................ 6,000 306,473
SBSI Holding PLC ................ 300 69,672
---------------
2,821,400
---------------
INSURANCE (1.0%)
AFLAC, Inc. ..................... 160,000 5,120,000
---------------
MORTGAGE RELATED (0.3%)
Federal Home Loan Mortgage Corp. 30,000 1,515,000
---------------
REAL ESTATE (0.0%)
Cheung Kong Holdings ............ 40,000 162,843
Chubu Sekiwa Real Estate ........ 4,000 51,781
DBS Land ........................ 30,000 89,331
First Capital Corp. ............. 10,000 33,619
---------------
337,574
---------------
UTILITY--ELECTRIC (0.2%)
East Midlands Electricity ...... 40 526
Enersis S.A. (ADR) .............. 5,000 138,750
EVN ............................. 2,000 259,909
Hidroelectrica del Cantabrico .. 2,000 54,693
Powergen PLC .................... 15,000 125,571
Powergen PLC (ADR) .............. 500 42,000
Veba ............................ 900 311,761
---------------
933,210
---------------
UTILITY--GAS (1.1%)
ENRON Corp. ..................... 180,000 5,490,000
---------------
UTILITY--TELEPHONE (0.8%)
Atlantic Tele-Network* .......... 3,000 25,688
Kon PTT Nederland+ .............. 20,000 674,085
Sprint Corp. .................... 100,000 2,762,500
Stet D Risp Port ................ 30,000 71,129
Stet-Societa Finanziaria
Telefonica (ADR) ............... 30,000 88,425
Telefonica de Espana S.A. ...... 8,000 94,498
---------------
3,716,325
---------------
TOTAL CREDIT SENSITIVE (7.5%) . 37,045,102
---------------
ENERGY
COAL & GAS PIPELINES (0.6%)
Sonat, Inc. ..................... 100,000 2,800,000
---------------
</TABLE>
42
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
OIL--DOMESTIC (1.4%)
Amoco Corp. ..................... 40,000 $ 2,365,000
Orbit Oil and Gas* .............. 30,000 25,022
Phillips Petroleum Co. .......... 140,000 4,585,000
Renaissance Energy*+ ............ 4,000 77,348
XCL Corp.* ...................... 200,000 162,500
---------------
7,214,870
---------------
OIL--INTERNATIONAL (0.1%)
Ampolex Ltd. .................... 42,000 113,311
Canadian Occidental ............. 3,000 67,500
Norsk Hydro AS .................. 6,000 235,958
Yukong Ltd. (GDR)*+ ............. 7,000 101,500
---------------
518,269
---------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
CHC Helicopter Corp. ............ 28,000 127,250
Coflexip+ ....................... 11,000 255,750
---------------
383,000
---------------
TOTAL ENERGY (2.2%) ............ 10,916,139
---------------
TECHNOLOGY
ELECTRONICS (4.5%)
Applied Materials, Inc.* ........ 60,000 2,535,000
Austria Mikro Systeme
International AG*+ ............. 4,500 339,239
Casio Computer Co. Ltd. ......... 8,000 101,154
Disco Co. ....................... 2,000 62,820
Fuji Electronics Co. ............ 9,000 250,176
Futaba Corp. .................... 4,000 214,350
GP Batteries International ..... 34,000 93,500
Hirose Electric Co. Ltd. ........ 3,000 183,944
Kyocera Corp. ................... 4,000 296,638
Linear Technology Corp. ......... 70,000 3,465,000
Molex, Inc. ..................... 120,000 4,140,000
Motorola, Inc. .................. 120,000 6,945,000
Murata Manufacturing Co. Ltd. .. 5,000 193,176
NEC Corp. ....................... 15,000 171,601
Nikon Corp. ..................... 26,000 252,825
Rohm Co. Ltd. ................... 10,000 423,482
Sensonar AS* .................... 30,000 186,283
Sensormatic Electronics Corp. .. 40,000 1,440,000
TDK Corp. ....................... 12,000 581,636
Tokin Corp. ..................... 6,000 84,897
Tokyo Electron .................. 10,000 311,089
Tokyo Ohka Kogyo ................ 8,000 280,181
---------------
22,551,991
---------------
OFFICE EQUIPMENT (0.1%)
Canon, Inc. ..................... 23,000 390,065
Fujitsu Ltd. .................... 18,000 182,439
Ricoh Elemex Corp. .............. 12,000 163,773
---------------
736,277
---------------
OFFICE EQUIPMENT SERVICES (1.2%)
Enator 'B' Free* ................ 20,000 148,037
Getronics N.V. .................. 6,099 222,429
Oracle Systems Corp.* ........... 90,000 3,971,250
Paychex, Inc. ................... 40,000 1,620,000
Sidus Systems, Inc.*+ ........... 8,100 49,804
---------------
6,011,520
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- - ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED):
TELECOMMUNICATIONS (1.3%)
Andrew Corp.* ................... 70,000 $ 3,657,500
BCE Mobile Communications, Inc.* 4,500 142,755
Bell Cablemedia PLC (ADR)* ..... 7,000 141,750
Cellular Communications Puerto
Rico, Inc.* .................... 3,600 120,600
DDI Corporation ................. 38 327,948
Filtronic Comtek PLC* ........... 296,000 787,382
Mannesmann AG ................... 1,600 433,646
Nihon Dempa Kogyo ............... 8,000 275,364
Rogers Cantel Mobile
Communications, Inc. (Class B)* 6,000 176,439
---------------
6,063,384
---------------
TOTAL TECHNOLOGY (7.1%) ........ 35,363,172
---------------
DIVERSIFIED
MISCELLANEOUS (0.6%)
Alba ............................ 2,000 84,775
Allied Signal, Inc. ............. 60,000 2,040,000
Hanson Trust .................... 50,000 180,533
Indonesia Fund, Inc.* ........... 9,000 110,250
International UNP Holdings*+ ... 143,000 96,845
International UNP
Holdings--Warrants* (a)+ ....... 125,000 23,167
Taiwan Fund ..................... 8,000 231,000
---------------
TOTAL DIVERSIFIED (0.6%) ...... 2,766,570
---------------
TOTAL COMMON STOCKS (47.8%)
(Cost $228,904,471) ............ 235,621,168
---------------
PREFERRED STOCKS:
CAPITAL GOODS (0.0%)
MACHINERY
Gea AG* ......................... 120 38,254
---------------
CONSUMER CYCLICALS
AUTOS & TRUCKS (0.0%)
Bayer Moteren Werke AG .......... 545 196,244
---------------
RETAIL--GENERAL (0.0%)
Hach AG ......................... 50 22,263
---------------
TOTAL CONSUMER CYCLICALS (0.0%) 218,507
---------------
CREDIT SENSITIVE (0.1%)
INSURANCE
Marschollek Lauten Partners .... 500 267,802
---------------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Nokia+ .......................... 3,000 443,293
---------------
TOTAL PREFERRED STOCKS (0.2%)
(Cost $438,659) ................ 967,856
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (0.6%)
Applied Extrusion 11.5%,
04/01/02 ....................... $1,000,000 990,000
</TABLE>
43
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- - ---------------------------------------------------------------
LONG-TERM DEBT SECURITIES (CONTINUED):
Buckeye Cellulose 10.25%,
05/15/01 ...................... $ 500,000 $ 467,500
G-I Holdings Zero Coupon Sr.
Disc. Note, 10/01/98 .......... 1,500,000 926,250
Trans Resources, Inc. 11.875%
Series B Sr. Sub. Note,
07/01/02 ...................... 500,000 455,000
---------------
2,838,750
---------------
METALS & MINING (0.2%)
Kaiser Aluminum 12.75%,
02/01/03 ...................... 1,000,000 1,007,500
---------------
PAPER (0.5%)
Domtar, Inc. 12.0%, 04/15/01 .. 750,000 780,000
Stone Container Corp. 9.875%,
02/01/01 ...................... 1,000,000 940,000
Sweetheart Cup 10.5%, 09/01/03 500,000 460,000
Williamhouse Regency of
Delaware, Inc. 11.5%, 06/15/05 500,000 460,000
---------------
2,640,000
---------------
STEEL (0.2%)
A.K. Steel Corp. 10.75%,
04/01/04 ...................... 1,000,000 990,000
---------------
TOTAL BASIC MATERIALS (1.5%) . 7,476,250
---------------
BUSINESS SERVICES ..............
PRINTING, PUBLISHING & BROADCASTING (1.2%)
American Media Operation
11.625%, 11/15/04 ............. 500,000 512,500
General Media, Inc. 10.625%
Note, 12/31/00 ................ 700,000 658,000
Time Warner Entertainment
8.375%, 03/15/23 .............. 4,300,000 3,570,032
United States Banknote Corp.
11.625%, 8/01/02 .............. 1,000,000 880,000
Young Broadcasting 11.75%,
11/15/04 ...................... 500,000 505,000
---------------
TOTAL BUSINESS SERVICES (1.2%) 6,125,532
---------------
CAPITAL GOODS
AEROSPACE (0.1%)
Rohr, Inc. 11.625%, 05/15/03 .. 500,000 497,500
---------------
MACHINERY (0.2%)
Specialty Equipment 11.375%,
12/01/03 ...................... 1,000,000 970,000
---------------
TOTAL CAPITAL GOODS (0.3%) ... 1,467,500
---------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.2%)
CMI Industries 9.5%, 10/01/03 . 1,000,000 830,000
---------------
RETAIL--GENERAL (0.8%)
Lowe's Companies, Inc. 3.0%
Conv., 07/22/03 ............... 3,000,000 4,072,500
---------------
TOTAL CONSUMER CYCLICALS (1.0%) 4,902,500
---------------
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
CONSUMER NONCYCLICALS
CONTAINERS (0.4%)
Calmar Spray Systems 14.0%,
02/15/99 ...................... $1,000,000 $ 995,000
Container Corp. 11.25%,
05/01/04 ...................... 500,000 512,500
Silgan Corp. 11.75% Deb.,
06/15/02 ...................... 400,000 414,000
---------------
1,921,500
---------------
RETAIL--FOOD (0.3%)
Food for Less 10.45% Sr.
Unsecured Note, 04/15/00 ..... 500,000 490,000
Grand Union Co. 12.25%,
07/15/02** .................... 2,000,000 790,000
---------------
1,280,000
---------------
TOTAL CONSUMER NONCYCLICALS (0.7%) 3,201,500
---------------
CREDIT SENSITIVE
BANKS (1.3%)
BankAmerica Corp. 7.2%,
04/15/06 ...................... 3,000,000 2,663,730
Chemical Banking Corp. 7.875%,
07/15/06 ...................... 3,000,000 2,815,020
Dime Bancorp 10.5%, 11/15/05 .. 750,000 742,500
---------------
6,221,250
---------------
FINANCIAL SERVICES (0.2%)
Keystone Group, Inc. 9.75%,
09/01/03 ...................... 500,000 460,000
NL Industries 11.75%, 10/15/03 700,000 704,375
---------------
1,164,375
---------------
MORTGAGE RELATED (2.6%)
Government National Mortgage
Association:
7.0%, 12/15/23 ................ 6,721,682 6,028,509
7.5%, 01/15/24 ................ 7,081,813 6,566,173
---------------
12,594,682
---------------
FOREIGN GOVERNMENT (0.6%)
Province of Ontario 5.812%
Floating Rate,
08/17/99 (b) .................. 3,100,000 3,078,300
---------------
REAL ESTATE (0.2%)
Scotsman Group 9.5%, 12/15/00 . 1,000,000 905,000
---------------
UTILITY--ELECTRIC (0.7%)
Commonwealth Edison 8.375%,
02/15/23 ...................... 3,500,000 3,146,220
Texas New Mexico Power Co.
10.75%, 09/15/03 .............. 500,000 492,500
---------------
3,638,720
---------------
UTILITY--GAS (0.2%)
Midland Cogeneration Venture
11.75% Deb. Series A, 07/23/05 1,000,000 913,430
Natural Gas Holdings Corp.
10.5% Conv., 10/14/97 ......... 100,000 89,621
---------------
1,003,051
---------------
</TABLE>
44
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONCLUDED)
December 31, 1994
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
U.S. GOVERNMENT (8.6%)
U.S. Treasury: 6.25%, 08/15/23 $14,905,000 $ 12,105,647
7.5%, 11/15/24 ................ 31,665,000 30,269,745
---------------
42,375,392
---------------
TOTAL CREDIT SENSITIVE (14.4%) 70,980,770
---------------
ENERGY
COAL & GAS PIPELINES (0.2%)
Mesa Capital Corp. 12.75%,
06/30/98 ...................... 1,000,000 862,500
---------------
OIL--DOMESTIC (0.3%)
Flores & Rucks 13.5%, 12/01/04 500,000 503,750
Gerrity Oil Corp. 11.75%,
07/15/04 ...................... 1,000,000 880,000
---------------
1,383,750
---------------
TOTAL ENERGY (0.5%) ........... 2,246,250
---------------
TECHNOLOGY
ELECTRONICS (0.4%)
General Instrument Corp. 5.0%
Conv., 06/15/00 ............... 1,000,000 1,337,500
Panamsat L.P. 9.75% Sr. Secured
Notes, 08/01/00 ............... 1,000,000 942,500
---------------
2,280,000
---------------
TELECOMMUNICATIONS (0.3%)
Centennial Cellular 8.875%,
11/01/01 ...................... 500,000 445,000
Mobile Telecommunications
13.5%, 12/15/02 ............... 500,000 506,875
USA Mobile Communications
14.0%, 11/01/04 ............... 500,000 511,250
---------------
1,463,125
---------------
TOTAL TECHNOLOGY (0.7%) ...... 3,743,125
---------------
DIVERSIFIED
MISCELLANEOUS (0.1%)
Brierley Investment 9.0% Conv.
Sub. Note, 06/30/98 ........... 14,000 9,231
Dade International, Inc. 13.0%,
02/01/05 ...................... 500,000 501,250
---------------
TOTAL DIVERSIFIED (0.1%) ..... 510,481
---------------
TOTAL LONG-TERM DEBT SECURITIES (20.4%)
(Amortized Cost $104,428,218). 100,653,908
---------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
AGA Capital Corp. 5.95%, due
01/13/95 ...................... 6,300,000 6,286,464
Allomon Funding Corp. 5.9%, due
01/27/95 ...................... 7,000,000 6,969,025
</TABLE>
<PAGE>
- - ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- - -------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (CONTINUED):
Barton Capital Corp. 6.1%, due
01/25/95 ...................... $5,906,000 $ 5,880,982
Ciesco LP 6.1%, due 02/08/95 .. 6,400,000 6,357,707
Equipment Funding, Inc.: 6.05%,
due 01/09/95 .................. 4,000,000 3,993,950
6.125%, due 02/07/95 .......... 4,000,000 3,974,139
Ford Motor Credit Co. 5.85%,
due 01/11/95 .................. 7,000,000 6,987,488
General Electric Capital Corp.:
6.1%, due 02/28/95 ............ 5,000,000 4,950,014
6.13%, due 02/07/95 ........... 6,400,000 6,358,588
Goldman Sachs & Co. 6.0%, due
02/02/95 ...................... 4,470,000 4,445,415
International Securitization
6.1%, due 01/17/95 ............ 3,500,000 3,489,918
Morgan Stanley Group, Inc.
5.92%, due 01/12/95 ........... 7,000,000 6,986,187
October Corp. 6.1%, due
01/27/95 ...................... 4,750,000 4,728,269
Potomac Electric Power Co.
6.05%, due 01/19/95 ........... 7,950,000 7,924,615
Philip Morris Capital Corp.
5.85%, due 01/05/95 ........... 8,000,000 7,993,500
Progress Receivables Funding
6.08%, due 01/20/95 ........... 7,450,000 7,424,836
Preferred Receivables Funding
6.12%, due 02/14/95 ........... 7,105,000 7,050,647
Premium Funding: 5.92%, due
01/17/95 ...................... 7,000,000 6,980,431
6.0%, due 01/26/95 ............ 3,375,000 3,360,375
Sheffield Receivables Corp.
6.05%, due 01/18/95 ........... 5,000,000 4,984,875
Sumitomo Corp. of America 6.3%,
due 03/28/95 .................. 4,200,000 4,137,578
Three River Funding 6.1%, due
01/20/95 ...................... 7,500,000 7,474,583
Working Capital Management Corp.
6.12%, due 01/13/95 ........... 7,000,000 6,984,530
Younkers Funding Corp. 6.05%,
due 01/25/95 .................. 6,440,000 6,412,941
---------------
TOTAL COMMERCIAL PAPER (28.9%) 142,137,057
---------------
TIME DEPOSITS (1.1%)
Industrial Bank of Japan--N.Y.
5.875%, due 01/03/95 .......... 5,300,000 5,300,000
---------------
TOTAL SHORT-TERM DEBT SECURITIES (30.0%)
(Amortized Cost $147,435,534) 147,437,057
---------------
TOTAL INVESTMENTS (98.4%) (Cost/Amortized Cost
$481,206,882) 484,679,989
CASH AND RECEIVABLES LESS
LIABILITIES (1.6%) ............ 7,797,560
---------------
NET ASSETS (100.0%) ............ $492,477,549
===============
</TABLE>
* Non-income producing.
** Non-income producing--issuer filed for protection under the Federal
Bankruptcy Code.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers.
(a) Fair valued.
(b) Interest rate shown on floating rate securities represents the rate
at December 31, 1994.
See Notes to Financial Statements.
45
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1994
1. Organization and Significant Accounting Policies
The Hudson River Trust (Trust) (successor to The Hudson River Fund, Inc.,
a Maryland corporation organized in 1984) was formed as a Massachusetts
business trust on July 10, 1987 and is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company. The Trust has twelve Portfolios (Portfolios) currently in operation:
Money Market, Intermediate Government Securities, Quality Bond, High Yield,
Balanced, Growth and Income, Equity Index, Common Stock, Global, Aggressive
Stock, Conservative Investors and Growth Investors. Shares of the Trust are
offered to separate accounts of The Equitable Life Assurance Society of the
United States (Equitable), a wholly-owned subsidiary of The Equitable
Companies Incorporated, Equitable Variable Life Insurance Company (Equitable
Variable), a wholly-owned subsidiary of the Equitable, and to separate
accounts of other insurance companies unaffiliated with Equitable and
Equitable Variable. Effective December 10, 1993 and December 14, 1994, the
Trust's Board of Trustees approved the establishment of the Equity Index and
International Portfolios, respectively. The Equity Index Portfolio commenced
operations on March 1, 1994 at an initial share value of $10. The
International Portfolio has not yet commenced operations.
On September 15, 1993, the Trustees approved an application for an order
of approval and exemption under the Investment Company Act of 1940 for filing
with the Securities and Exchange Commission (SEC) for the substitution of
shares of the Intermediate Government Securities Portfolio for shares of the
Short-Term World Income Portfolio (STWIP) (Substitution). On February 22,
1994, 289,703 shares of STWIP with a value of $2,582,814 (including no
unrealized appreciation or depreciation) were substituted for 254,893 shares
of Intermediate Government Securities Portfolio with a net asset value at the
date of substitution of $10.13 per share.
The following is a summary of the significant accounting policies of the
Trust:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are
valued at the last sale price, or, if there is no sale, at the latest
available bid price. Other unlisted stocks are valued at their last sale
price or, if no reported sale during the day, at a bid price estimated by a
broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage backed and asset backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quotes will be obtained from
a broker and converted to a price.
Purchased options, including options on futures, are valued at their last
bid price. Written options are valued at their last asked price.
Long-term corporate bonds are valued at prices obtained from a bond
pricing service of a major dealer in bonds when such prices are available;
however, when such prices are not available, such bonds are valued at a bid
price estimated by a broker.
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities are valued at
representative quoted prices.
Foreign securities not traded directly, or in American Depository Receipt
(ADR) or similar form in the United States, are valued at representative
quoted prices in the currency of the country of origin.
46
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
Except for the Money Market Portfolio, short-term debt securities which
mature in 60 days or less are valued at amortized cost, which approximates
market value. Short-term debt securities which mature in more than 60 days
are valued at representative quoted prices. Short-term debt securities held
in the Money Market Portfolio are valued at representative quoted prices
regardless of the length of maturity.
Futures and forward contracts are valued at their last sale price or, if
there is no sale, at the latest available bid price.
Other securities, including restricted securities, and assets for which
market quotations are not readily available or for which valuation cannot be
provided, are valued at "fair value" as determined in good faith by the
Valuation Committee of the Board of Trustees.
Securities transactions are recorded on the trade date net of brokerage
fees, commissions, and transfer fees.
Interest income (including amortization of premium and discount on
securities using the effective yield method) is accrued daily. Dividend
income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the related investments sold.
The books and records of the Trust are kept in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the bid price last
quoted by a composite list of major U.S. banks at the following dates:
(i) market value of investment securities, other assets and
liabilities--at the valuation date.
(ii) purchase and sales of investment securities, income and expenses--at
the date of such transactions.
Net currency gains or losses realized and unrealized as a result of
differences between interest or dividends and withholding taxes recorded on
the Portfolio's books and the U.S. dollar equivalent amount actually received
or paid are presented under foreign currency transactions in the realized and
unrealized gains and losses section of the Statements of Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its net investment income and net realized capital gains
to shareholders of each Portfolio. Therefore, no Federal income tax provision
is required. Dividends from net investment income are declared and
distributed quarterly; dividends from net realized short-term and long-term
capital gains are declared and distributed annually to the shareholders of
the Portfolios to which such gains are attributable. All dividends are
reinvested in additional full and fractional Shares of the related
Portfolios. All dividends are distributed on a tax basis and as such, the
amounts may differ from financial statement investment income and realized
capital gains.
Options Written:
All Portfolios (except for the Money Market and Equity Index Portfolios)
may write (sell) covered options as a hedge to provide protection against
adverse movements in the price of securities in the portfolio or to enhance
investment performance. When a Portfolio writes an option, an amount equal to
the premium received by the Portfolio is recorded as a liability and is
subsequently adjusted on a daily basis to the current market price of the
option written. Premiums received from writing options which expire
unexercised are recognized as gains on the expiration date. In writing
options, a Portfolio must assume that the option may be exercised at any time
prior to the expiration of its obligation as a writer, and that in such
circumstances the net proceeds of the sale or cost of purchase of the
underlying securities pursuant to the call or put option may be substantially
below or above the prevailing market price. A Portfolio also has the
additional risk of not being able to enter into a closing purchase
transaction if a liquid secondary market does not exist and bears the risk of
unfavorable changes in the price of the financial instruments underlying the
options.
47
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
Futures and Forward Contracts:
Futures and forward contracts are agreements to buy or sell a security for
a set price in the future. A Portfolio may buy or sell futures and forward
contracts for the purpose of protecting its portfolio securities against
future changes in interest rates which might adversely affect the value of
the Portfolio's securities or the price of securities that it intends to
purchase at a later date. Initial margin deposits are made upon entering into
futures contracts and can be either in cash or treasury securities. During
the period the futures and forward contracts are open, changes in the market
price of the contract are recognized as unrealized gains or losses by
"marking-to-market" at the end of each trading day. Variation margin payments
on futures contracts are received or made, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and the Portfolio's basis in the
contract. Should interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the futures and forward contracts and may
incur a loss. The use of futures and forward contracts transactions involves
the risk of imperfect correlation in movements in the price of futures and
forward contracts, interest rates and the underlying hedged assets.
Limitations on Market and Credit Risk:
Written options, futures and forward contracts involve elements of both
market and credit risk in excess of the amounts reflected in the Statements
of Assets and Liabilities. The contract amounts of these written options,
futures and forward contracts reflect the extent of the Portfolio's exposure
to off-balance sheet risk. The Portfolio bears the market risk which arises
from any changes in security values. The credit risk for futures contracts is
limited to failure of the exchange or board of trade which acts as the
counterparty to the Portfolio's futures transactions. Forward contracts are
done directly with the counterparty and not through an exchange and can be
terminated only by agreement of both parties to the contract. There is no
daily margin settlement and the Portfolio is exposed to the risk of default
by the counterparty.
Statement of Position 93-2:
During the year ended December 31, 1993, the Trust adopted Statement of
Position 93-2 Determination, Disclosure and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. The Financial Highlights for periods prior to 1993 have not been
restated to reflect this change in presentation. For the year ended December
31, 1994, the reclassification arising from current book/tax differences
resulted in increases (decreases) to the components of net assets as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
MONEY GOVERNMENT EQUITY
MARKET SECURITIES QUALITY BOND HIGH YIELD BALANCED INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- -------------- ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Paid-in capital .................... $ 1,966 $ 1,920,941 $(627,091) $ 16,377 $ 1,880,498 $ --
Undistributed (overdistributed) net
investment income ................. (1,966) 1,623,417 279,195 86,602 809,827 24
Accumulated net realized gain
(loss) ............................ -- (3,544,358) 347,896 (102,979) (2,690,325) (24)
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
COMMON STOCK GLOBAL STOCK INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Paid-in capital .................... $ 6,286,555 $(193,169) $ 5,068,852 $ 2,293 $ 83,015
Undistributed (overdistributed) net
investment income ................. 5,564,130 176,903 32,809 6,360 409,232
Accumulated net realized gain
(loss) ............................ (11,850,337) 20,126 (5,101,661) (8,653) (491,669)
Unrealized depreciation ............ (348) (3,860) -- -- (578)
</TABLE>
48
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
2. Management of the Trust
Prior to July 22, 1993, Equitable Capital Management Corporation
(Equitable Capital) served as the investment adviser to the Trust. On July
22, 1993, Alliance Capital Management L.P. (Alliance) acquired the business
and substantially all of the assets of Equitable Capital and became the
investment adviser to the Trust. Alliance, a publicly traded limited
partnership, is indirectly majority-owned by Equitable. The investment
advisory fees are as follows:
<TABLE>
<CAPTION>
DAILY AVERAGE NET ASSETS
----------------------------------------------------
FIRST $350 NEXT $400 OVER $750
MILLION MILLION MILLION
---------------- ---------------- ----------------
<S> <C> <C> <C>
Common Stock, Money Market and Balanced Portfolios ....... .40% .375% .35%
Aggressive Stock and Intermediate Government Securities ..
Portfolios ............................................... .50% .475% .45%
High Yield, Global, Conservative Investors and Growth
Investors Portfolios ..................................... .55% .525% .50%
FIRST $500 NEXT $500
MILLION MILLION OVER $1 BILLION
---------------- ---------------- ----------------
Quality Bond and Growth and Income Portfolios ............. .55% .525% .50%
FIRST $750 NEXT $750 OVER $1.5
MILLION MILLION BILLION
---------------- ---------------- ----------------
Equity Index Portfolio .................................... .35% .30% .25%
</TABLE>
3. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the Intermediate Government Securities, Quality Bond, High Yield,
Balanced, Growth and Income, Common Stock, Global, Aggressive Stock,
Conservative Investors and Growth Investors Portfolios for the year ended
December 31, 1994 and for the Equity Index Portfolio for the period from
March 1, 1994 (commencement of operations) through December 31, 1994, were as
follows:
<TABLE>
<CAPTION>
INTER-
MEDIATE
GOVERNMENT
SECURITIES QUALITY BOND HIGH YIELD BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities ........................... $ -- $134,633,305 $167,359,906 $701,342,556
U.S. Government securities ............ 94,380,590 93,270,874 -- 477,346,230
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... -- 141,178,435 156,633,974 700,154,938
U.S. Government securities ............ 193,037,272 83,310,560 -- 599,479,317
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND
INCOME EQUITY INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities ........................... $25,677,993 $38,376,103 $2,226,943,788 $372,472,585
U.S. Government securities ............ -- -- -- --
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 5,046,500 2,125,119 1,716,672,550 155,242,095
U.S. Government securities ............ -- -- -- --
</TABLE>
49
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
STOCK INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- --------------
<S> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities ........................... $1,799,422,407 $ 84,713,505 $345,726,710
U.S. Government securities ............ -- 193,764,564 184,082,818
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 1,469,648,907 79,812,161 215,006,262
U.S. Government securities ............ -- 175,020,009 186,086,343
</TABLE>
No activity is shown for the Money Market Portfolio since it trades
exclusively in short-term debt securities.
Transactions in options written for the year ended December 31, 1994 are
summarized as follows:
<TABLE>
<CAPTION>
AGGRESSIVE STOCK
COMMON STOCK PORTFOLIO PORTFOLIO
--------------------------- ------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
----------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Options outstanding--January 1, 1994 ... 101,169 $ 33,311,154 200 $ 73,148
Options written ......................... 271,856 78,739,546 365 75,652
Options terminated in closing purchase
transactions ........................... (127,236) (45,145,314) (565) (148,800)
Options expired ......................... (157,578) (40,656,762) -- --
Options exercised ....................... (77,211) (21,736,145) -- --
----------- -------------- ----------- -----------
Options outstanding --December 31, 1994 11,000 $ 4,512,479 -- $ --
=========== ============== =========== ===========
</TABLE>
The Portfolios (except for the Money Market, Intermediate Government
Securities and Equity Index Portfolios) may enter into forward currency
contracts in order to hedge their exposure to changes in foreign currency
exchange rates on its foreign securities holdings. A forward contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the original contracts and the closing of such contracts is included in
realized gains or losses from foreign currency transactions. At December 31,
1994, the Global and Growth Investors Portfolios had outstanding forward
currency contracts to buy/sell foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
GLOBAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- - ------------------------------------------ ---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 01/03/95-04/03/95 3,805 $ 5,948,934 $ 5,953,560 $ 4,626
French Francs, expiring 01/03/95 .......... 305 57,134 57,105 (29)
Netherland Guilders, expiring 01/03/95 ... 431 248,616 248,317 (299)
Spanish Pesetas, expiring 01/03/95 ....... 55,138 418,785 418,846 61
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, expiring 01/17/95-04/03/95 8,993 14,066,610 14,072,162 (5,552)
Deutsche Marks, expiring 01/17/95-04/03/95 16,317 10,394,709 10,529,301 (134,592)
French Francs, expiring 01/03/95 .......... 5,253 970,104 983,454 (13,350)
Irish Punt, expiring 04/03/95 ............. 342 531,954 530,042 1,912
Netherland Guilders, expiring 04/03/95 ... 23,143 13,167,909 13,333,410 (165,501)
---------------
$(312,724)
===============
</TABLE>
50
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
GROWTH INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- - ------------------------------------------ ---------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 01/03/95-04/03/95 559 $ 873,117 $ 874,382 $ 1,265
French Francs, expiring 01/03/95 .......... 5 880 880 --
Netherland Guilders, expiring 01/03/95 ... 215 124,019 123,870 (149)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, expiring 01/17/95-04/03/95 1,072 1,677,793 1,676,943 850
Deutsche Marks, expiring 01/17/95-04/03/95 2,531 1,613,029 1,633,484 (20,455)
French Francs, expiring 01/03/95 .......... 803 148,281 150,322 (2,041)
Netherland Guilders, expiring 04/03/95 ... 4,795 2,728,421 2,762,713 (34,292)
---------------
$(54,822)
===============
</TABLE>
As of December 31, 1994, the gross unrealized appreciation (depreciation)
of investments based on the aggregate cost of investments for Federal income
tax purposes was as follows:
<TABLE>
<CAPTION>
INTER-
MEDIATE
GOVERNMENT
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation .. $ 42,874 $ -- $ 182,924 $ 372,184
Aggregate gross unrealized depreciation .. (22,719) (932,028) (5,575,988) (4,429,369)
-------------- ------------- -------------- --------------
Net unrealized appreciation (depreciation) $ 20,155 $ (932,028) $ (5,393,064) $(4,057,185)
============== ============= ============== ==============
Federal income tax cost of investments ... $292,100,623 $44,352,222 $131,940,089 $76,967,632
============== ============= ============== ==============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND
BALANCED INCOME EQUITY INDEX COMMON STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation .. $ 58,115,371 $ 464,112 $ 1,637,492 $ 355,407,358
Aggregate gross unrealized depreciation .. (82,209,097) (727,435) (2,119,469) (220,027,248)
-------------- ------------- ------------- ---------------
Net unrealized appreciation (depreciation) $ (24,093,726) $ (263,323) $ (481,977) $ 135,380,110
============== ============= ============= ===============
Federal income tax cost of investments ... $1,341,262,672 $32,168,190 $37,153,004 $3,313,553,822
============== ============= ============= ===============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
GLOBAL STOCK INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation .. $ 21,585,616 $ 317,750,271 $ 1,387,744 $ 16,725,079
Aggregate gross unrealized depreciation .. (18,857,905) (71,441,731) (3,097,661) (14,654,787)
-------------- -------------- -------------- ---------------
Net unrealized appreciation (depreciation) $ 2,727,711 $ 246,308,540 $ (1,709,917) $ 2,070,292
============== ============== ============== ===============
Federal income tax cost of investments ... $410,321,557 $1,578,558,744 $175,014,438 $482,609,697
============== ============== ============== ===============
</TABLE>
51
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
December 31, 1994
At December 31, 1994, the Growth and Income Portfolio had net capital loss
carryforwards of $284,490 (of which $2,753 expires in the year 2001 and
$281,737 expires in the year 2002), and the Intermediate Government
Securities, Quality Bond, High Yield, Balanced, Aggressive Stock,
Conservative Investors and Growth Investors Portfolios had net capital loss
carryforwards of $9,469,908, $6,513,805, $1,059,564, $19,919,410,
$41,137,196, $6,422,411 and $3,699,317, respectively, which all expire in the
year 2002. To the extent the above losses are used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders.
4. Capital Share Transactions
At December 31, 1994, there was an unlimited number of shares of
beneficial interest (Shares), without par value, available for issuance by
the Board of Trustees. Shares are divided into twelve classes, one class for
each Portfolio.
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------- ------------------- -------------------------------- --------------
YEAR ENDED YEAR ENDED YEAR ENDED FOR THE PERIOD FROM YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, OCTOBER 1, 1993*
1994 1993 1994 1993 1994 TO DECEMBER 31, 1993 1994 1993
-------- -------- -------- -------- ----------- ------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD .....34,864,688 18,059,290 3,505,801 3,857,622 3,600,969 10,608,292 3,096,529 3,126,793
SHARES ISSUED IN
CONNECTION WITH
THE
SUBSTITUTION OF
THE SHORT-TERM
WORLD INCOME
PORTFOLIO ...... -- -- 254,893 -- -- -- -- --
SHARES ISSUED IN
REINVESTMENT OF
DIVIDENDS AND
DISTRIBUTIONS . 1,126,391 794,237 764,978 2,679,247 931,997 137,748 687,436 674,383
---------- ---------- --------- --------- --------- ---------- --------- ---------
TOTAL SHARES
ISSUED .........35,991,079 18,853,527 4,525,672 6,536,869 4,532,966 10,746,040 3,783,965 3,801,176
SHARES REDEEMED (28,439,024)(20,867,335)(14,777,456)(18,684,343) (572,547) (71,663) (2,156,031)(2,349,883)
---------- ---------- --------- --------- --------- ---------- --------- ---------
NET INCREASE
(DECREASE) ..... 7,552,055 (2,013,808)(10,251,784)(12,147,474) 3,960,419 10,674,377 1,627,934 1,451,293
========== ========== ========= ========= ========= ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND
BALANCED INCOME EQUITY INDEX COMMON STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------- -------------------------------- ------------------- -----------------
YEAR ENDED YEAR ENDED FOR THE PERIOD FROM FOR THE PERIOD FROM YEAR ENDED
DECEMBER 31, DECEMBER 31, OCTOBER 1, 1993* MARCH 1, 194* TO DECEMBER 31,
1994 1993 1994 TO DECEMBER 31, 1993 DECEMBER 31, 1994 1994 1993
-------- -------- ----------- ------------------- ------------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold .....10,355,446 11,752,209 3,211,395 148,118 3,972,324 35,758,326 26,722,829
Shares issued in
reinvestment of
dividends and
distributions . 2,742,085 6,673,429 43,243 341 81,699 17,645,138 27,625,345
---------- ---------- --------- ------- --------- ---------- ----------
Total shares
issued .........13,097,531 18,425,638 3,254,638 148,459 4,054,023 53,403,464 54,348,174
Shares redeemed (5,497,701)(3,093,436) (149,828) (2,143) (330,143) (7,202,598)(12,113,013)
---------- ---------- --------- ------- --------- ---------- ----------
Net increase ... 7,599,830 15,332,202 3,104,810 146,316 3,723,880 46,200,866 42,235,161
========== ========== ========= ======= ========= ========== ==========
</TABLE>
* Commencement of operations.
52
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(CONCLUDED)
December 31, 1994
<TABLE>
<CAPTION>
CONSERVATIVE GROWTH
GLOBAL AGGRESSIVE STOCK INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------- ------------------------ -------------------- -----------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1993 1994 1993 1994 1993 1994 1993
-------- -------- ---------- --------- -------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold ........21,053,323 6,306,138 23,071,977 14,845,578 6,795,540 3,854,672 15,839,742 6,494,618
Shares issued in
reinvestment of
dividends and
distributions ..... 898,514 978,012 69,084 4,097,189 760,857 791,593 886,613 1,321,388
---------- --------- ---------- ---------- --------- --------- ---------- ---------
Total shares issued 21,951,837 7,284,150 23,141,061 18,942,767 7,556,397 4,646,265 16,726,355 7,816,006
Shares redeemed ...(1,911,754)(1,222,905) (12,173,721) (10,702,747) (730,909) (820,799) (960,533) (101,336)
---------- --------- ---------- ---------- --------- --------- ---------- ---------
Net increase .......20,040,083 6,061,245 10,967,340 8,240,020 6,825,488 3,825,466 15,765,822 7,714,670
========== ========= ========== ========== ========= ========= ========== =========
</TABLE>
5. Transactions with Affiliated Companies
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Investments in companies which are
affiliates as of December 31, 1994 are summarized as follows:
<TABLE>
<CAPTION>
PORTFOLIO AFFILIATES COST MARKET VALUE
- - ------------ -------------------------------------- -------------- --------------
<S> <C> <C> <C>
Balanced Aldila ................................ $ 11,724,095 $ 10,369,550
Spaghetti Warehouse, Inc. ............. 7,457,903 1,698,938
Taco Cabana (Class A) ................. 15,582,766 9,922,981
-------------- --------------
$ 34,764,764 $ 21,991,469
============== ==============
Common CBL & Associates ...................... $ 20,591,544 $ 21,794,438
Stock Chris Craft Industries, Inc. (Class B) 13,002,933 40,989,174
Essex Properties ...................... 6,922,500 5,369,375
Itel Corp. ............................ 32,070,138 62,439,841
Spieker Properties, Inc. .............. 27,033,088 26,837,950
-------------- --------------
$ 99,620,203 $157,430,778
============== ==============
Aggressive American Superconductor Corp. ......... $ 8,408,502 $ 14,991,075
Stock Bombay Co., Inc. ...................... 31,871,510 24,756,638
Coflexip .............................. 17,343,750 18,590,700
Global Marine, Inc. ................... 39,034,036 36,680,287
Healthwise of America, Inc. ........... 7,637,594 15,745,455
Heritage Media Corp. (Class A) ....... 11,365,125 21,447,594
Nuevo Energy Company .................. 14,736,639 13,368,600
Rowan Cos., Inc. ...................... 50,087,831 35,818,388
-------------- --------------
$180,484,987 $181,398,737
============== ==============
</TABLE>
53
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
December 31, 1994
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(C)
MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1994 1993* 1992 1991 1990
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) ...... $10.12 $10.11 $10.13 $10.17 $10.14
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.41 0.30 0.37 0.61 0.81
Net realized and unrealized gain (loss) on
investments ................................ -- -- (0.01) -- 0.01
---------- ---------- ---------- ---------- ----------
Total from investment operations ............ 0.41 0.30 0.36 0.61 0.82
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS:
Dividends from net investment income ....... (0.39) (0.29) (0.38) (0.65) (0.79)
---------- ---------- ---------- ---------- ----------
Total dividends ............................. (0.39) (0.29) (0.38) (0.65) (0.79)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year ................. $10.14 $10.12 $10.11 $10.13 $10.17
========== ========== ========== ========== ==========
Total return (d) ............................. 4.02% 3.00% 3.57% 6.20% 8.22%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $325,391 $248,460 $268,584 $302,395 $359,426
Ratio of expenses to average net assets ..... 0.42% 0.42% 0.43% 0.43% 0.44%
Ratio of net investment income to average net
assets ...................................... 4.01% 2.91% 3.63% 5.96% 7.85%
</TABLE>
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(E):
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, APRIL 1, 1991 TO
--------------------------------- DECEMBER 31,
1994 1993* 1992 1991
--------- ---------- ---------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) .............. $ 10.08 $ 10.53 $ 10.73 $ 10.00
--------- ---------- ---------- ----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.65 0.59 0.60 0.52
Net realized and unrealized gain (loss) on
investments .......................................... (1.08) 0.51 (0.02) 0.66
--------- ---------- ---------- ----------------
Total from investment operations ..................... (0.43) 1.10 0.58 1.18
--------- ---------- ---------- ----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.78) (0.68) (0.60) (0.34)
Distributions from realized gains .................... -- (0.87) (0.18) (0.11)
--------- ---------- ---------- ----------------
Total dividends and distributions .................... (0.78) (1.55) (0.78) (0.45)
--------- ---------- ---------- ----------------
Net asset value, end of period ........................ $ 8.87 $ 10.08 $ 10.53 $ 10.73
========= ========== ========== ================
Total return (d) ...................................... (4.37)% 10.58% 5.53% 12.10%
========= ========== ========== ================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..................... $48,518 $158,511 $293,587 $241,290
Ratio of expenses to average net assets ............... 0.56% 0.53% 0.52% 0.43%
Ratio of net investment income to average net assets . 6.75% 5.43% 5.63% 4.88%
Portfolio turnover rate ............................... 133% 254% 316% 174%
</TABLE>
54
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(CONTINUED)
December 31, 1994
QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
OCTOBER 1, 1993
YEAR ENDED TO DECEMBER 31,
DECEMBER 31, 1994 1993
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of period (a) ......................................... $9.82 $ 10.00
----------------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................................... 0.66 0.11
Net realized and unrealized loss on investments and foreign currency
transactions .................................................................... (1.16) (0.16)
----------------- -----------------
Total from investment operations ................................................ (0.50) (0.05)
----------------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................................ (0.55) (0.12)
Distributions in excess of realized gains ....................................... -- (0.01)
Tax return of capital distributions ............................................. (0.05) --
----------------- -----------------
Total dividends and distributions ............................................... (0.60) (0.13)
----------------- -----------------
Net asset value, end of period ................................................... $8.72 $ 9.82
================= =================
Total return (d) ................................................................. (5.10)% (0.51)%
================= =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ................................................ $127,575 $104,832
Ratio of expenses to average net assets .......................................... 0.59% 0.69%(b)
Ratio of net investment income to average net assets ............................. 7.17% 4.62%(b)
Portfolio turnover rate .......................................................... 222% 77%
</TABLE>
HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1994 1993* 1992 1991 1990
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) ...... $10.08 $ 9.15 $ 8.96 $ 7.97 $ 9.14
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.89 0.94 0.89 0.89 1.04
Net realized and unrealized gain (loss) on
investments ................................ (1.17) 1.10 0.19 0.99 (1.14)
--------- --------- --------- --------- ---------
Total from investment operations ............ (0.28) 2.04 1.08 1.88 (0.10)
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.88) (0.92) (0.89) (0.89) (1.07)
Dividends in excess of net investment income (0.01) -- -- -- --
Distributions from realized gains ........... -- (0.19) -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions ........... (0.89) (1.11) (0.89) (0.89) (1.07)
--------- --------- --------- --------- ---------
Net asset value, end of year ................. $8.91 $10.08 $ 9.15 $ 8.96 $ 7.97
========= ========= ========= ========= =========
Total return (d) ............................. (2.79)% 23.15% 12.31% 24.46% (1.10)%
========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $73,895 $67,169 $47,687 $45,066 $36,569
Ratio of expenses to average net assets ..... 0.61% 0.63% 0.60% 0.61% 0.62%
Ratio of net investment income to average net
assets ...................................... 9.23% 9.52% 9.58% 10.31% 12.04%
Portfolio turnover rate ...................... 248% 280% 177% 187% 53%
</TABLE>
55
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(CONTINUED)
December 31, 1994
BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------
1994 1993* 1992 1991 1990
--------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) .... $16.67 $16.19 $18.48 $14.40 $15.16
--------- -------- --------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.45 0.50 0.56 0.60 0.78
Net realized and unrealized gain (loss) on
investments .............................. (1.78) 1.46 (1.11) 5.23 (0.76)
--------- -------- --------- -------- --------
Total from investment operations .......... (1.33) 1.96 (0.55) 5.83 0.02
--------- -------- --------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ..... (0.44) (0.50) (0.55) (0.55) (0.78)
Dividends in excess of net investment
income ................................... (0.03) -- -- -- --
Distributions from realized gains ........ -- (0.95) (1.19) (1.20) --
Distributions in excess of realized gains -- (0.03) -- -- --
Tax return of capital distributions ...... (0.00) -- -- -- --
--------- -------- --------- -------- --------
Total dividends and distributions ........ (0.47) (1.48) (1.74) (1.75) (0.78)
--------- -------- --------- -------- --------
Net asset value, end of year ............... $14.87 $16.67 $16.19 $18.48 $14.40
========= ======== ========= ======== ========
Total return (d) ........................... (8.02)% 12.28% (2.85)% 41.25% 0.25%
========= ======== ========= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) ..............$1,329,820 $1,364,640 $1,076,670 $964,262 $286,432
Ratio of expenses to average net assets ..... 0.39% 0.39% 0.40% 0.41% 0.45%
Ratio of net investment income to average net
assets ...................................... 2.87% 2.99% 3.30% 3.60% 5.35%
Portfolio turnover rate ...................... 115% 99% 91% 159% 119%
</TABLE>
GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 1, 1993 TO
DECEMBER 31, 1994 DECEMBER 31, 1993**
----------------- -------------------
<S> <C> <C>
Net asset value, beginning of period (a) ............... $ 9.95 $ 10.00
----------------- -------------------
INCOME FROM INVESTMENT OPERATIONS: Net investment
income ................................................ 0.31 0.03
Net realized and unrealized gain (loss) on investments (0.36) (0.06)
----------------- -------------------
Total from investment operations ...................... (0.05) (0.03)
----------------- -------------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.20) (0.02)
Dividends in excess of net investment income ......... -- (0.00)
Tax return of capital distributions ................... -- (0.00)
----------------- -------------------
Total dividends and distributions ..................... (0.20) (0.02)
----------------- -------------------
Net asset value, end of period ......................... $ 9.70 $ 9.95
================= ===================
Total return (d) ....................................... (0.58)% (0.25)%
================= ===================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................... $31,522 $1,456
Ratio of expenses to average net assets ................ 0.78% 2.70%(b)
Ratio of net investment income to average net asset ... 3.13% 1.12%(b)
Portfolio turnover rate ................................ 52 % 48%
</TABLE>
56
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(CONTINUED)
December 31, 1994
EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
MARCH 1, 1994 TO
DECEMBER 31, 1994
-----------------
<S> <C>
Net asset value, beginning of period (a) ............. $ 10.00
-----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.20
Net realized and unrealized loss on investments .... (0.09)
-----------------
Total from investment operations ................... 0.11
-----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... (0.20)
Distributions of realized gains .................... (0.03)
Distributions in excess of realized gains .......... (0.01)
-----------------
Total dividends and distributions .................. (0.24)
-----------------
Net asset value, end of period ....................... $ 9.87
-----------------
Total return (d) ..................................... (1.08)%
=================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................... $36,748
Ratio of expenses to average net assets .............. 0.49 %(b)
Ratio of net investment income to average net assets 2.42 %(b)
Portfolio turnover rate .............................. 7 %
</TABLE>
COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------
1994 1993* 1992 1991 1990
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) ... $14.65 $13.49 $14.18 $11.22 $12.87
--------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.20 0.23 0.24 0.32 0.21
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions .......................... (0.51) 3.10 0.20 3.91 (1.25)
--------- -------- -------- -------- --------
Total from investment operations ........ (0.31) 3.33 0.44 4.23 (1.04)
--------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income .... (0.19) (0.23) (0.24) (0.29) (0.22)
Dividends in excess of net investment
income ................................ (0.01) (0.00) -- -- --
Distribution from realized gains ........ (0.77) (1.94) (0.89) (0.98) (0.39)
Tax return of capital distributions ..... (0.01) -- -- -- --
--------- -------- -------- -------- --------
Total dividends and distributions ....... (0.98) (2.17) (1.13) (1.27) (0.61)
--------- -------- -------- -------- --------
Net asset value, end of year .............. $13.36 $14.65 $13.49 $14.18 $11.22
========= ======== ======== ======== ========
Total return (d) .......................... (2.14)% 24.84% 3.22% 37.90% (8.11)%
========= ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $3,466,245 $3,125,128 $2,307,292 $2,126,402 $673,476
Ratio of expenses to average net assets ..... 0.38% 0.38% 0.38% 0.40% 0.44%
Ratio of net investment income to average net
assets ...................................... 1.40% 1.55% 1.73% 2.32% 1.72%
Portfolio turnover rate ...................... 52% 82% 71% 90% 82%
</TABLE>
57
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(CONTINUED)
December 31, 1994
GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------
1994 1993* 1992 1991 1990
-------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) ....... $13.62 $11.41 $11.64 $ 9.76 $10.74
-------- -------- --------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.20 0.08 0.14 0.22 0.38
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 0.52 3.58 (0.20) 2.74 (1.03)
-------- -------- --------- -------- --------
Total from investment operations ............. 0.72 3.66 (0.06) 2.96 (0.65)
-------- -------- --------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.17) (0.15) (0.11) (0.23) (0.33)
Distributions from realized gains ............ (0.28) (1.30) (0.06) (0.85) --
Distributions in excess of realized gains ... (0.00) (0.00) -- -- --
Tax return of capital distributions ......... (0.02) -- -- -- --
-------- -------- --------- -------- --------
Total dividends and distributions ............ (0.47) (1.45) (0.17) (1.08) (0.33)
-------- -------- --------- -------- --------
Net asset value, end of year .................. $13.87 $13.62 $11.41 $11.64 $ 9.76
======== ======== ========= ======== ========
Total return (d) .............................. 5.23% 32.09% (0.50)% 30.54% (6.06)%
======== ======== ========= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) ..................... $421,698 $141,257 $49,171 $39,487 $24,097
Ratio of expenses to average net assets ............. 0.69% 0.84% 0.70% 0.75% 0.75%
Ratio of net investment income to average net assets 1.41% 0.62% 1.20% 1.94% 3.67%
Portfolio turnover rate ............................. 71% 150% 216% 267% 502%
</TABLE>
AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------------------
1994 1993* 1992 1991 1990
--------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) .... $ 31.89 $ 29.81 $33.82 $19.37 $19.90
--------- --------- --------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.04 0.09 0.17 0.12 0.16
Net realized and unrealized gain (loss) on
investments .............................. (1.26) 4.91 (1.25) 16.68 1.46
--------- --------- --------- -------- --------
Total from investment operations .......... (1.22) 5.00 (1.08) 16.80 1.62
--------- --------- --------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ..... (0.04) (0.09) (0.18) (0.10) (0.16)
Distributions from realized gains ........ -- (2.75) (2.75) (2.25) (1.99)
Distributions in excess of realized gains -- (0.07) -- -- --
Tax return of capital distributions ...... (0.00) (0.01) -- -- --
--------- --------- --------- -------- --------
Total dividends and distributions. ....... (0.04) (2.92) (2.93) (2.35) (2.15)
--------- --------- --------- -------- --------
Net asset value, end of year ............... $30.63 $31.89 $29.81 $33.82 $19.37
========= ========= ========= ======== ========
Total return (d) ........................... (3.81)% 16.77% (3.16)% 86.87% 8.16%
========= ========= ========= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $1,832,164 $1,557,332 $1,210,576 $959,257 $120,960
Ratio of expenses to average net assets ..... 0.49% 0.49% 0.50% 0.51% 0.55%
Ratio of net investment income to average net
assets ...................................... 0.12% 0.28% 0.57% 0.40% 0.78%
Portfolio turnover rate ...................... 92% 89% 68% 117% 54%
</TABLE>
58
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(CONTINUED)
December 31, 1994
CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------
1994 1993* 1992 1991 1990
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) .... $11.12 $10.94 $11.29 $10.23 $10.26
--------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.55 0.52 0.64 0.69 0.72
Net realized and unrealized gain (loss) on
investments .............................. (1.00) 0.65 (0.01 ) 1.28 (0.09 )
--------- -------- -------- -------- --------
Total from investment operations .......... (0.45) 1.17 0.63 1.97 0.63
--------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ..... (0.52) (0.50) (0.62 ) (0.66) (0.66 )
Dividends in excess of net investment
income ................................... -- (0.00) -- -- --
Distributions from realized gains ........ -- (0.49) (0.36 ) (0.25) --
--------- -------- -------- -------- --------
Total dividends and distributions ........ (0.52) (0.99) (0.98 ) (0.91) (0.66 )
--------- -------- -------- -------- --------
Net asset value, end of year ............... $10.15 $11.12 $10.94 $11.29 $10.23
========= ======== ======== ======== ========
Total return (d) ........................... (4.10)% 10.76% 5.64 % 19.80% 6.30 %
========= ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $173,691 $114,418 $70,675 $50,279 $29,971
Ratio of expenses to average net assets ..... 0.59% 0.60% 0.61% 0.64% 0.73%
Ratio of net investment income to average net
assets ...................................... 5.22% 4.49% 5.77% 6.45% 7.06%
Portfolio turnover rate ...................... 228% 178% 136% 171% 88%
</TABLE>
GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------
1994 1993* 1992 1991 1990
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year (a) ..... $15.61 $14.69 $15.17 $11.03 $10.33
--------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.50 0.43 0.44 0.41 0.44
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ............................ (0.98) 1.79 0.28 4.93 0.64
--------- -------- -------- -------- --------
Total from investment operations .......... (0.48) 2.22 0.72 5.34 1.08
--------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.46) (0.42) (0.41) (0.37) (0.38)
Dividends in excess of net investment
income .................................. (0.01) -- -- -- --
Distributions from realized gains ......... -- (0.88) (0.79) (0.83) --
--------- -------- -------- -------- --------
Total dividends and distributions ......... (0.47) (1.30) (1.20) (1.20) (0.38)
--------- -------- -------- -------- --------
Net asset value, end of year ................ $14.66 $15.61 $14.69 $15.17 $11.03
========= ======== ======== ======== ========
Total return (d) ............................ (3.15)% 15.26% 4.85% 48.83% 10.70%
========= ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) .............. $492,478 $278,467 $148,650 $84,338 $24,539
Ratio of expenses to average net assets ..... 0.59% 0.62% 0.60% 0.66% 0.78%
Ratio of net investment income to average net
assets ...................................... 3.32% 2.71% 3.00% 3.03% 4.11%
Portfolio turnover rate ...................... 131% 118% 129% 139% 92%
</TABLE>
59
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
December 31, 1994
* Prior to July 22, 1993, Equitable Capital Management Corporation (Equitable
Capital) served as the investment adviser to the Trust. On July 22, 1993,
Alliance Capital Management L.P. acquired the business and substantialy all
of the assets of Equitable Capital and became the investment adviser to the
Trust.
** Restated.
(a) Date as of which funds were first allocated to the Portfolios are as
follows:
Common Stock Portfolio--June 16, 1975
Money Market Portfolio--July 13, 1981
Balanced Portfolio--January 27, 1986
Aggressive Stock Portfolio--January 27, 1986
High Yield Portfolio--January 2, 1987
Global Portfolio--August 27, 1987
Conservative Investors Portfolio--October 2, 1989
Growth Investors Portfolio--October 2, 1989
Intermediate Government Securities Portfolio--April 1, 1991
Quality Bond Portfolio--October 1, 1993
Growth and Income Portfolio--October 1, 1993
Equity Index Portfolio--March 1, 1994
(b) Annualized.
(c) Net investment income and capital changes per share are based upon
monthly average shares outstanding.
(d) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Total return calculated for a period of less
than one year is not annualized.
(e) On February 22, 1994, shares of the Intermediate Government Securities
Portfolio of the Trust were substituted for shares of the Trust's
Short-Term World Income Portfolio.
60
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees
of The Hudson River Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and financial highlights present
fairly, in all material respects, the financial position of the Money Market
Portfolio, Intermediate Government Securities Portfolio, Quality Bond
Portfolio, High Yield Portfolio, Balanced Portfolio, Growth and Income
Portfolio, Equity Index Portfolio, Common Stock Portfolio, Global Portfolio,
Aggressive Stock Portfolio, Conservative Investors Portfolio and Growth
Investors Portfolio (constituting The Hudson River Trust, hereafter referred
to as the "Trust") at December 31, 1994, the results of each of their
operations for the year then ended (for Equity Index Portfolio for the period
from March 1, 1994 (commencement of operations) through December 31, 1994)
and the changes in each of their net assets and financial highlights for each
of the two years in the period then ended for the Money Market Portfolio,
Intermediate Government Securities Portfolio, High Yield Portfolio, Balanced
Portfolio, Common Stock Portfolio, Global Portfolio, Aggressive Stock
Portfolio, Conservative Investors Portfolio and Growth Investors Portfolio
and for the year then ended and for the period October 1, 1993 (commencement
of operations) through December 31, 1993 for the Quality Bond Portfolio and
Growth and Income Portfolio and for the period from March 1, 1994
(commencement of operations) through December 31, 1994 for the Equity Index
Portfolio, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1994 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable
basis for the opinion expressed above. The financial highlights for the year
ended December 31, 1992 and for each of the periods indicated prior thereto,
were audited by other independent accountants whose report dated February 10,
1993, expressed an unqualified opinion on those financial statements.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
February 8, 1995
61
