MARKET OVERVIEW
After lackluster performance in 1994, the markets have staged an impressive
comeback. The bond market has been very strong, particularly in May. The S&P
500 has posted a total return of 20.19% for the first half while the Dow Jones
Industrial Average is setting record highs.
There was a complete change in outlook for fixed income markets during the
first half of 1995 as the growth rate of the U.S. economy slowed from an
unsustainable rate in excess of 4.00% in the final quarter of 1994 to an
estimated growth rate of 1% in the second quarter of 1995. As a result, the
Federal Reserve switched from raising the Federal funds rate in February to
lowering the rate at the beginning of July.
Abating inflation fears also helped to fuel bond market performance. It now
appears likely that the inflation rate will peak in the low 3% area. In
addition, with President Clinton's endorsement of the balanced budget concept,
the market is anticipating reduced borrowing from the Federal government.
Together, lower inflation and lower budget deficit expectations are a powerful
combination for the fixed income markets.
Overall, the second quarter of 1995 proved to be one of the best stretches that
the bond market and bond investors have ever enjoyed. The long bond yield
dropped from approximately 7.5% at the end of the first quarter to
approximately 6.5% by second-quarter end. Looking forward, the market seems
unlikely to repeat the excellent performance of the first half of the year.
Current expectations are that returns will slow to more sustainable levels in
the second half.
The stock market rally, which began last December, continued throughout the
first half of 1995 with no significant setbacks along the way. Profits remained
strong in spite of the unexpected slowdown in the economy and the lower
inflation rate. Buoyed by hopes of a soft landing, traders pushed the Dow Jones
average to 4551 as of June 30, 1995.
During the first quarter, the market was led by the large multinational
consumer and health care stocks, presumably because their foreign-sourced
earnings looked attractive at a time when the dollar was dragging sharply. For
more recent months, the market has been willing to look beyond short-term
economic weakness and more aggressive stocks have performed better. This
accounts for the excellent performance of technology and communications stocks.
The stocks are volatile and perhaps somewhat extended, but long-term investment
here may be well rewarded.
Going forward, the question will be how long companies can maintain high profit
levels in the current slow growth, low inflation environment. At quarter-end,
some companies had announced shortfalls in earnings and corresponding price
declines. Typically, growth companies have more consistent earnings patterns
and therefore perform relatively well in a weak profit environment. For the
market overall, the key question will be how much weakness we see in profits.
Foreign stock markets, which outperformed the U.S. market throughout 1994,
could not keep pace with the U.S. rally in the first half of 1995.
International performance was dominated by currency gains against the U.S.
dollar. The MSCI European Index rose 13%, with half of the gain due to currency
appreciation. Developing markets rallied in the second quarter as a result of
U.S. interest rate declines.
However, continued poor performance from the Japanese equity market left
diversified international investors with only small gains for the first half.
In fact, the lack of visible economic growth prospects caused Japan to post the
worst performance among major global equity markets. The Japanese market fell
8%, despite an 18% appreciation of the Yen.
The U.S. markets are currently enjoying the benefits of rising profits, low
inflation and low interest rates. The peak in the market will probably come
when one or more of these factors begins to change. We are heartened by the
fact that the economy has slowed without first creating inflationary strains or
extreme interest rate pressures. This reinforces our belief that the current
economic weakness will not turn into a recession, but such an outcome is by no
means assured.
The information contained herein is from Wall Street Journal articles, tables
and charts.
<PAGE>
MONEY MARKET PORTFOLIO
RAYMOND PAPERA
Vice President
Mr. Papera has managed the Money Market Portfolio since 1990. He has 15 years
of investment experience.
Speculation on the type of action Federal Reserve policy makers would announce
at the upcoming Federal Open Market Committee meeting was peaking at the end of
the first half of 1995, while leading economic indicators continued to send
mixed signals on the economy. Although Gross Domestic Product growth in the
second quarter appeared flat, or near zero, late June data seems to indicate
that the economy is stabilizing. Demand side indicators, which plunged earlier
this year, seem to be rebounding, partly as a result of lower market interest
rates. Additionally, consumer confidence has shown its resiliency in the face
of news and media discussion critical to the fortunes of the economy. Market
optimism was validated in early July when the Federal Reserve took the first
step toward lowering interest rates.
Within the Money Market Portfolio, as short-term interest rates began to rise
above long-term rates, a rare situation known as an inverted yield curve, the
Portfolio extended its average maturity to ensure a competitive performance
yield. The average maturity on June 30 was approximately 44 days.
Data released in the third quarter will be very telling as to whether the
Federal Reserve will react to the slowing economy. A view might be taken that
Federal Reserve board members are comfortable with current monetary policy, as
inflation has been held in check for two consecutive quarters. Therefore, the
short-term market may be a little ahead of itself in pricing in anticipated
interest rate easings. With such uncertainties in the near-term market, the
Portfolio's temporary goal will be to maintain a yield at or above the Federal
funds target base while gradually extending along the inverted yield curve.
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.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $310.9 million
Number of Issues ...................... 46
Average Maturity ...................... 44 days
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Bank Notes ............................ 3.8%
Banker's Acceptance ................... 6.1%
Certificates of Deposit ............... 8.4%
Commercial Paper ...................... 69.2%
Short Term & Cash ..................... 1.5%
Time Deposits ......................... 1.5%
Variable Rate Securities .............. 9.5%
</TABLE>
[Distribution Of Assets BY Maturity Pie Chart]
DISTRIBUTION OF ASSETS BY MATURITY
<TABLE>
<CAPTION>
<S> <C>
1-30 days ............................. 47.0%
31-60 days ............................ 16.0%
61-90 days ............................ 28.0%
91+ days .............................. 9.0%
</TABLE>
<PAGE>
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PATRICIA J. YOUNG
Senior Vice President
Ms. Young has co-managed the Intermediate Government Securities Portfolio since
1995. She has 14 years of investment experience.
PAUL A. ULLMAN
Vice President
Mr. Ullman has co-managed the Intermediate Government Securities Portfolio since
1995. He has 14 years of investment experience.
The U.S. bond markets rebounded sharply over the past six months. The rally was
sparked, in large part, by evidence of a slowing U.S. economy, moderating
inflationary pressures and a shift in Federal Reserve monetary policy. Gross
Domestic Product growth slowed to 2.7% in the first quarter and is estimated at
below 1.0% in the second quarter. Broad price indices such as the Consumer Price
Index have shown only moderate acceleration and labor costs remain under
control. In addition, interest rates declined markedly in anticipation of the
recent shift in Federal Reserve monetary policy.
Over the last six months, we significantly increased our holdings of
intermediate duration U.S. Treasuries and reduced our allocation to mortgage-
backed securities. This served to enhance relative performance of the Portfolio
as Treasury securities outperformed mortgage-backed securities in the first half
of the year. We did, however, retain an allocation to mortgage-backed
securities, and as a result, the Portfolio underperformed its unmanaged market
benchmark, the Lehman Intermediate Government Index.
The outlook for the U.S. bond markets continues to be favorable. It is our view
that U.S. economic expansion should moderate to an annual growth rate of
approximately 2.0% in the second half of the year. We believe that inflationary
pressures have crested and project that Consumer Price Index inflation will peak
near 3.5% (year-over-year) in 1995. This economic environment should benefit
both Treasury and mortgage securities in the Portfolio.
The Intermediate Government Securities Portfolio is neither guaranteed nor
insured by the U.S. Government.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $59.8 million
Number of Issues ...................... 14
Average Quality ....................... Gov't
Average Duration ...................... 3.0 years
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Agencies .............................. 6.7%
Cash .................................. 24.6%
Collateralized Mortgage Obligations ... 8.6%
Mortgage-Backed Securities ............ 30.0%
Treasuries ............................ 30.1%
</TABLE>
[Distribution Of Assets By Duration Pie Chart]
DISTRIBUTION OF ASSETS BY DURATION
<TABLE>
<CAPTION>
<S> <C>
0-1 Year .............................. 36.6%
1-3 Years ............................. 17.1%
3-5 Years ............................. 20.7%
5-7 Years ............................. 18.7%
Over 7 Years .......................... 6.9%
</TABLE>
<PAGE>
QUALITY BOND PORTFOLIO
MATTHEW BLOOM
Vice President
Mr. Bloom has managed the Quality Bond Portfolio since 1995. He has 14 years of
investment experience.
Performance for the first half of 1995 was strong. Ahead of the Federal
Reserve's action in July, the market rallied strongly as economic activity
declined. The yield curve, nearly flat at year-end, steepened as markets began
to anticipate a lower interest rate environment and inflation concerns receded.
As the rally progressed, the Portfolio reduced its cash position, increasing
exposure to government bonds which usually exhibit strong price performance
characteristics in highly volatile environments. Exposure to the corporate
sector increased as opportunities arose. The focus of the Portfolio's corporate
holdings is currently dollar-denominated foreign bonds and cable and
entertainment companies. The Portfolio is avoiding more cyclical corporations
until the economic outlook appears more benign.
Within the fixed income market, the mortgage market is most likely to
underperform as volatility rises. As the rally gained steam in the second
quarter, mortgage exposure was reduced to zero. The mortgage and asset-backed
sectors were the worst-performing sectors so far this year. As the market
stabilized in June, however, a new position in mortgage collateral was
established.
Looking forward, the market seems unlikely to repeat the excellent performance
of the first half of the year. Current expectations are that returns will slow
to more sustainable levels in the second half.
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 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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $146.5 million
Number of Issues ...................... 16
Average Quality* ...................... AAA
Average Maturity ...................... 8.7 years
</TABLE>
*The Average Quality represents a weighted average of the Portfolio's holdings,
excluding cash, using the Standard & Poor's rating scale.
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Domestic Corporate Bonds .............. 14.9%
Eurobonds .............................. 4.4%
Government Bonds ...................... 55.6%
Mortgage-Backed Securities ............. 9.3%
Short-Term & Cash ...................... 9.5%
Yankee Corporate Bonds ................. 6.3%
</TABLE>
[Distribution Of Assets By Maturity Pie Chart]
DISTRIBUTION OF ASSETS BY MATURITY
<TABLE>
<CAPTION>
<S> <C>
0-1 Year .............................. 9.4%
1-2 Years ............................. 3.6%
2-4 Years ............................. 19.8%
4-7 Years ............................. 26.6%
7-10 Years ............................ 15.9%
Over 10 Years ......................... 24.7%
</TABLE>
<PAGE>
HIGH YIELD PORTFOLIO
AMY NUSSBAUM
Vice President
Ms. Nussbaum has managed the High Yield Portfolio since 1992. She has 11 years
of investment experience.
After a slow second half of 1994, when rapidly increasing interest rates and
mutual fund outflows combined to limit new bond issues and negatively impact
performance, the high yield market bounced back in the first half of 1995. There
was a complete change in outlook for fixed income markets as the growth rate of
the U.S. economy slowed from an unsustainable rate in excess of 4.00% in the
final quarter of 1994 to an estimated growth rate of 1% in the second quarter of
1995. Overall, the first half of 1995 was strong for the high yield market,
although it underperformed other fixed income asset classes and the equity
market. The High Yield Portfolio slightly underperformed its unmanaged market
benchmark, the Merrill Lynch Master High Yield Index.
In anticipation of a slowing economy, the Portfolio shifted out of most
cyclicals, such as auto-related and steel, into more defensive sectors such as
cable television. We have increased our weightings in paper companies, which
still have strong momentum despite their cyclical nature. In foreign markets,
the Portfolio was more active in trading than in previous periods to take
advantage of relative value opportunities. We believe the Portfolio is well-
positioned as far as credit quality. An increased weighting in CCC - rated
securities represents increased exposure to the telecommunications sector, which
is dominated by lower rated issuers.
While signs of recession, deceleration or a significant correction in the stock
market could negatively impact the high yield market, we believe credit trends
remain positive. Although the market default rate is higher than in 1994, it is
still low compared to historical levels.
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 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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $95.4 million
Number of Issues ...................... 68
Average Quality* ...................... B
Average Maturity ...................... 7.0 years
</TABLE>
*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 Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Corporate Bonds ....................... 74.1%
Foreign Bonds ......................... 22.0%
Short-Term & Cash ...................... 3.9%
</TABLE>
[Distribution Of Assets** By Quality Pie Chart]
DISTRIBUTION OF ASSETS** BY QUALITY
<TABLE>
<CAPTION>
<S> <C>
AAA-BBB ............................... 3.9%
BB-B .................................. 89.1%
CCC and below ......................... 7.0%
</TABLE>
<PAGE>
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 market moved steadily higher in the second quarter, continuing the advance
that began last December. In early July, the Federal Reserve moved to lower
interest rates for the first time since February of last year. Hopes that this
will produce a soft landing for the economy have taken the market to new highs.
The Growth & Income Portfolio posted a double-digit gain for the first half of
1995, slightly underperforming the S&P 500. The Portfolio's focus on blue chip,
high dividend paying equity holdings prevented us from participating in the
rally of smaller, more volatile stocks, which boosted S&P 500 performance.
During the second quarter, convertible securities, largely from the technology
sector, posted strong gains.
At the end of the first half, the Portfolio's yield was far above the yield of
the S&P 500. The Portfolio's areas of emphasis include utilities, energy and
cyclical issues such as chemicals and paper. The convertible security segment
continues to favor technology investments.
The markets are currently enjoying the benefits of rising profits, low inflation
and low interest rates. The peak in the market may come when one or more of
these factors begins to change. The high income level in the Portfolio should
provide some protection in the event of a market decline.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $60.2 million
Number of Issues ...................... 80
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Common Stock .......................... 51.7%
Convertibles .......................... 21.0%
Preferred Stock ....................... 5.1%
Short-Term & Cash ..................... 22.2%
</TABLE>
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.
DUPONT DE NEMOURS & CO.
Largest U.S. chemical company with extensive line of chemical products including
petrochemicals, adhesives, paints and polymers.
BRISTOL MYERS SQUIBB CO.
Major pharmaceutical and consumer goods manufacturer. Products include
pharmaceutical, beauty aids and infant formula, marketed under the Clairol,
Nuprin, Ban and Bufferin brand names.
FIRST BANK SYSTEMS
Minneapolis- based bank holding company. Ranks 31st in the United States based
on assets.
SEARS, ROEBUCK & CO.
Large retailer benefiting from restructuring, has gained market share in home
appliances, electronics and apparel.
XEROX CORP.
Multinational image and document processing company. Manufactures and
distributes an extensive line of copiers, printers and facsimile machines.
<PAGE>
EQUITY INDEX PORTFOLIO
JUDITH MAGLIO
Vice President
Ms. Maglio has overseen the Equity Index Portfolio since its inception.
The Equity Index Portfolio is the only passively managed portfolio within the
Hudson River Trust. Using a stratified sampling technique, the Portfolio is
constructed to track the investment results of the S&P 500 Index before expenses
without holding all 500 issues. It also seeks to keep its risk level consistent
with that of the S&P 500 Index. Because the goal of the Equity Index Portfolio
is to track the S&P 500 Index, it will remain fully invested in common stocks.
As of June 30, the Portfolio held 464 of the 500 issues in the S&P 500 Index.
Stocks are selected to mirror the market capitalization and industry weightings
of the S&P 500 Index.
The continued rally of the equity market in the first half of 1995 resulted in
strong performance from the S&P 500 Index, and consequently for the Equity Index
Portfolio. For the first six months of 1995, the Equity Index Portfolio posted
returns closely in line with those of the S&P 500 Index.
INVESTMENT OBJECTIVE
Total return before expenses that approximates the total return performance of
the Standard & Poor's Corporation 500 Index, including reinvestment of
dividends, at a risk level consistent with that of the Index.
PORTFOLIO SUMMARY, AS OF JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $78.6 million
Number of Issues ...................... 464
</TABLE>
LARGEST HOLDINGS
GENERAL ELECTRIC CO.
GE's business products include aircraft engines, appliances and broadcasting,
lighting and financial services.
EXXON CORP.
A major world crude oil and natural gas exploration, production, transportation
and marketing company. It also explores for and mines coal and other minerals,
and makes and sells petrochemicals.
AT&T CORP.
The largest U.S. long-distance telephone company. It also manufactures
telecommunications equipment and computers and provides financial services.
COCA-COLA CO.
The world's largest soft-drink company it makes soft drink concentrates and
syrups and has a sizable fruit juice business especially orange juice.
ROYAL DUTCH PETROLEUM CO. (ADR)
Owns 60% of the Royal Dutch/Shell Group of companies, a leader in the world
petroleum industry. Operations include oil and gas production, transportation,
refining, and marketing and the manufacture of petrochemicals.
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.).
<PAGE>
COMMON STOCK PORTFOLIO
TYLER SMITH
Senior Vice President
Mr. Smith has managed the Common Stock Portfolio since 1977. He has over 20
years of investment experience.
During the first quarter, the market was led by the large multinational consumer
and health care stocks, presumably because they are viewed as being relatively
recession resistant and, importantly, because their foreign-sourced earnings
looked attractive at a time when the dollar was dragging sharply. The Common
Stock Portfolio was underweighted in these stocks and lagged behind the market
indices in the first quarter. For more recent months, the market has been
willing to look beyond short-term economic weakness and more aggressive stocks
have performed better. With its heavy emphasis on technology and
telecommunications stocks, along with financial services stocks, the Common
Stock Portfolio had an excellent quarter and ended the first half of the year
with returns just slightly below those of its unmanaged benchmark, the Standard
& Poor's 500 Index.
Further near-term gains by the market depend on investors' willingness to assume
that a period of slower economic growth will be followed by a reacceleration of
growth and not by a recession. Recent economic reports offer some encouragement,
but such an outcome is by no means assured. After such a long leg up in the
market, it would be prudent to expect a period of consolidation.
We continue to believe that the technology sector is in an extraordinary growth
phase. The digital revolution and the information super-highway have created
strong growth opportunities for years to come. While the stocks are volatile and
perhaps somewhat extended, long-term investment here may be well rewarded.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $4.2 billion
Number of Issues ...................... 110
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Common Stock .......................... 95.6%
Convertibles .......................... 1.1%
Preferred Stock ....................... 0.7%
Short-Term & Cash ..................... 2.6%
</TABLE>
LARGEST HOLDINGS
SEARS, ROEBUCK & CO.
Large retailer benefiting from restructuring, has gained market share in home
appliances, electronics and apparel.
AMERICAN INTERNATIONAL GROUP, INC.
One of the world's leading insurance organizations providing insurance and other
financial services in 130 countries and territories.
MANNESMANN AG (ADR)
Manufactures steel tubes, machinery and auto components and engages in
industrial plant engineering. Mannesmann also operates Germany's second private
mobile phone network.
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.
INTEL CORP.
A technological leader in the design and manufacture of microprocessors,
specialized semiconductors and computer subassemblies for clients all over the
world.
CISCO SYSTEMS, INC.
Leading provider of equipment and systems used to interconnect and manage
computer networks.
<PAGE>
GLOBAL PORTFOLIO
RONALD SIMCOE
Vice President
Mr. Simcoe has managed the Global Portfolio since 1988. He has 17 years of
investment experience.
With the S&P 500 up 20% in the first half of 1995, the U.S. posted the best
performance of all major global markets. International performance was dominated
by currency appreciation versus the U.S. dollar. The negative impact of the
rapidly depreciating dollar on globally competitve Japanese and European
companies produced generally subdued international stock market performance.
Significant losses in the Japanese equity market left diversified international
investors with only small gains for the first half.
Lack of visible economic growth prospects caused Japan to post the worst
performance among major global equity markets. The Japanese market fell 8% in
the first half, despite an 18% appreciation of the Yen. By contrast, the MSCI
European Index rose 13%, with nearly half of the gain due to currency
appreciation. Developing markets rallied strongly in the second quarter due as a
result of U.S. interest rate declines. The MSCI Emerging Markets Index rose 10%
for the quarter led by Mexico, and is now down only 4% for the year.
The Global Portfolio lagged the MSCI World Index due to modestly underweighted
positions in the U.S. and Europe and overweighted positions in poorly performing
developing stock markets. The international portion of the Portfolio is
concentrated in capital goods, technology and consumer non-durables, while the
U.S. emphasis is on technology and financial services.
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
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $552.7 million
Number of Issues ...................... 395
Number of Countries Represented ....... 31
</TABLE>
[Distribution Of Investments By Country Pie Chart]
DISTRIBUTION OF INVESTMENTS BY COUNTRY
<TABLE>
<CAPTION>
<S> <C>
Canada ................................ 1.0%
Japan ................................. 17.9%
Latin America ......................... 1.2%
Other European Countries .............. 12.8%
Scandinavia ........................... 3.5%
Short-Term & Cash ..................... 17.6%
Southeast Asia ........................ 4.6%
United Kingdom ........................ 7.8%
United States ......................... 33.6%
</TABLE>
LARGEST HOLDINGS
SEARS, ROEBUCK & CO.
Large retailer benefiting from restructuring, has gained market share in home
appliances, electronics and apparel.
INTEL CORP.
A technological leader in the design and manufacture of microprocessors,
specialized semiconductors and computer subassemblies for clients all over the
world.
FILTRONIC COMTEK PLC
Major British producer of cellular telephone infrastructure components.
CISCO SYSTEMS, INC.
Leading provider of equipment and systems used to interconnect and manage
computer networks.
MOTOROLA, INC.
One of the leading suppliers of semiconductors, paging equipment and cellular
mobile telecommunication systems. Also produces government and industrial
electronics and automotive equipment.
VIACOM, INC.
1994 acquisitions of Paramount Communications and Blockbuster make Viacom one of
the world's leading entertainment companies.
<PAGE>
INTERNATIONAL PORTFOLIO
RONALD SIMCOE
Vice President
Mr. Simcoe has managed the International Portfolio since its inception. He has
17 years of investment experience.
The International Portfolio, established on April 3, 1995, has been carefuly
building investment positions. At the end of the first half, we were 60%
invested. The Portfolio outperformed its unmanaged benchmark, the EAFE Index, in
the second quarter of 1995.
The European market rose 6% in the second quarter on modest interest rate cuts
by the German Bundesbank and hopes of currency stability. We have built
significant positions in dollar-revenue dependent companies in Europe, with
special emphasis on the United Kingdom and Holland.
Since the inception of the portfolio in April, the Japanese market has fallen
6%, despite an 8% appreciation of the Yen. However, valuations of the Japanese
global leadership companies in technology and capital goods are compelling, and
the Portfolio continues to emphasize these companies. Developing markets, led by
Mexico, rallied strongly in the second quarter as liquidity returned after U.S.
interest rate declines.
Because of the changeable global economic environment, we are taking the time to
carefully seclect the best international investment opportunities for the
Portfolio. We expect the Portfolio to become fully invested in the third
quarter.
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
Long-term growth of capital
INVESTMENT POLICY
Primarily equity securities selected principally to permit participation in non-
United States companies with prospects for growth
PORTFOLIO SUMMARY, AS OF JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $6.8 million
Number of Issues ...................... 129
Number of Countries Represented ....... 22
</TABLE>
[Distribution Of Investments By Country Pie Chart]
DISTRIBUTION OF INVESTMENTS BY COUNTRY
<TABLE>
<CAPTION>
<S> <C>
Canada ................................ 2.0%
Japan ................................. 25.1%
Latin America ......................... 2.2%
New Zealand & Australia ............... 3.5%
Other European Countries .............. 11.5%
Scandinavia ........................... 3.5%
Short-Term & Cash ..................... 40.8%
Southeast Asia ........................ 5.6%
United Kingdom ........................ 5.8%
</TABLE>
LARGEST HOLDINGS
WOLTERS KLUWER
This Dutch company is the European leader in legal and accounting publications
with important U.S. medical and consumer publishing operations.
SGL CARBON AG
German producer of carbon electrodes for electric steel furnaces.
TOMRA SYSTEMS
Norwegian producer of recycling machines for plastic bottles, metal cans and
glass.
ZENECA GROUP PLC
British pharmaceutical company with important operations in agricultural
chemicals and other specialty chemicals.
BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
This Panamanian- based company provides trade-related letters of credit for
transactions throughout Latin America.
ROCHE HOLDINGS AG
Swiss pharmaceutical company with important participation in biotechnology
through its holding of Genentech.
<PAGE>
AGGRESSIVE STOCK PORTFOLIO
ALDEN STEWART
Executive Vice President
Mr. Stewart has co-managed the Aggressive Stock Portfolio since 1993.
RANDALL HAASE
Senior Vice President
Mr. Haase has co-managed this Portfolio since 1993.
The Aggressive Stock Portfolio did well in the first half of 1995, easily
recovering last year's decline and going on to post a strong double-digit
return. The Portfolio slightly underperformed its unmanaged market benchmark,
comprised of 50% S&P Mid-Cap Index and 50% Russell 2000 Index. These indices,
comprised of smaller company stocks, did not fare as well in the first half as
the S&P 500, which was more influenced by blue chip consumer growth stocks and
certain mega technology stocks.
As we enter the second half of 1995, we continue to favor media, energy, retail
and cellular stocks. The Portfolio's emphasis on technology and energy paid off
in the first half of 1995, boosting performance.
Among the Portfolio's top holdings are retailers Nine West and Office Depot, and
media giant Viacom. New positions in the Portfolio include Telephone & Data
Systems, which is positioned to benefit from the growing cellular penetration
rate in the U.S. currently at 19% and growing by 20,000 subscribers a day. We
continue to be enthusiastic about the prospects for cellular growth throughout
the rest of the decade.
We believe interest rates should either remain steady, or continue to decline,
as long as economic activity shows signs of moderating. It is likely that the
Federal Reserve will lower the Federal funds rate again sometime in the next few
months to prevent the economy from slowing further. We remain focused on small
to medium-sized growth companies that continue to build their franchises and
have the potential to expand market share in their respective industries.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $2.2 billion
Number of Issues ...................... 79
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Short-Term & Cash ..................... 6.0%
Common Stock .......................... 94.0%
</TABLE>
LARGEST HOLDINGS
CNA FINANCIAL CORP.
One of the largest property-casualty and life insurers in the United States.
OFFICE DEPOT, INC.
Operates the largest chain of office product warehouse stores in the U.S., with
more than 350 stores in 32 states and Canada offering brand name merchandise to
small- and medium- size business and home offices.
VIACOM, INC.
1994 acquisitions of Paramount Communications and Blockbuster make Viacom one of
the world's leading entertainment companies.
TELEPHONE & DATA SYSTEMS, INC.
Owns and operates local phone companies primarily in rural areas and is a
leading owner and operator of cellular telephone systems through its majority
ownership of U.S. Cellular.
NINE WEST GROUP, INC.
One of the leading manufacturers of women's footwear in the United States. The
company sells their products through department stores as well as their own
retail stores.
MANNESMANN AG (ADR)
Manufactures steel tubes, machinery and auto components and engages in
industrial plant engineering. Mannesmann also operates Germany's second private
mobile phone network.
<PAGE>
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. He has over 20 years of investment experience.
The rally in the financial markets continued through the second quarter. Because
of the weaker-than-anticipated economy, building inflationary pressures began to
subside, and inflation now seems likely to stabilize at about 3.5%. With worries
about inflation declining, long-term interest rates fell sharply from 7.5% to
6.5%. With this sharp drop in interest rates during the first half of 1995, the
Conservative Investors Portfolio easily recovered last year's decline and went
on to post a strong return during the first half, even with our conservative
asset mix.
In January and April, we moved to increase the duration of the account to lock
in attractive yields and benefit from the drop in interest rates. Strong returns
from our small equity position also helped results.
Asset mix remains conservative, due to the extremely high valuation of the stock
market, which makes equity investing too risky for a conservative investor.
Fixed-income returns are still attractive, with inflation remaining low, and we
prefer to add risk in this area rather than in equities.
The markets are currently enjoying the benefits of rising profits, low inflation
and low interest rates. The peak in the market will come when one or more of
these factors begins to change. Portfolio quality remains very high, so that any
credit quality concerns created by the economic slowdown should not affect the
account's performance.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $214.0 million
Number of Issues ...................... 48
Average Quality* ...................... AA+
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Bonds ................................. 67.7%
Common Stock .......................... 11.7%
Short-Term & Cash ..................... 20.6%
</TABLE>
LARGEST EQUITY HOLDINGS
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.).
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.
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.
GENERAL ELECTRIC CO.
GE's business products include aircraft engines, appliances and broadcasting,
lighting and financial services.
INTERNATIONAL PAPER CO.
Diversified paper and forest product manufacturer. Products include specialty
paper, lumber, office products and packaging materials.
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.
<PAGE>
Asset Allocation Series: Balanced Portfolio
BRUCE CALVERT
Vice Chairman of the Board and Chief Investment Officer of Alliance
Mr. Calvert has managed the Balanced Portfolio since 1995. He has over 20 years
of investment experience.
The equity and bond markets rose at an excited pace during the first half of
1995. The equity market, led by technology, aerospace and financial services,
had an especially strong six months. Buoyed by hopes of a soft landing, traders
pushed the Dow Jones average to 4551 as of June 30, 1995. Mid-sized companies
began to gain on blue chip stocks and closed the gap that opened in the first
quarter.
Bond markets have continued to rally thus far this year on the continued
expectation of Federal Reserve (Fed) interest rate intervention. Indeed, as the
second quarter came to a close, the Fed cut the key Federal funds rate by 25
basis points.
The Balanced Portfolio underperformed its unmanaged market benchmark, comprised
of 50% S&P 500 Index and 50% Lehman Government/Corporate Bond Index, for the
first half of 1995. The Portfolio began the second quarter underweighted in
technology and overweighted in economically sensitive holdings. In anticipation
of further declines in interest rates, we began trimming our cash position by
buying larger capitalization technology names and financial services stocks.
Fixed income holdings were increased, while cash was reduced to 12%. As we enter
the second half of 1995, the Portfolio has increased its emphasis on large
capitalization, high quality companies. New top holdings include Philip Morris,
Motorola and Gillette.
Earnings will be an increasingly important benchmark for the stock market in the
coming six months. As the economy slows, negative earnings surprises may short-
circuit the electric performance of the stock market's strongest sectors.
Therefore, we will continue to focus on quality names that we believe will
sustain positive growth under any scenario.
In the bond market, slack consumer demand, burgeoning inventories and other
indicators of slowing economic growth may lead to continuing cuts in interest
rates.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $1.4 billion
Number of Equity Issues ............... 165
Average Quality* ...................... AA+
Average Maturity ...................... 9.8 years
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Bonds ................................. 32.3%
Common Stock .......................... 50.4%
Convertibles .......................... 3.8%
Preferred Stock ........................ 1.3%
Short-Term & Cash ..................... 12.2%
</TABLE>
LARGEST EQUITY HOLDINGS
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.).
ITT
A diversified conglomerate currently in the process of being legally divided
into its three component parts: hotel, entertainment and insurance.
AIRTOUCH COMMUNICATIONS INC.
A leading international cellular communications company.
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.
AMERICAN INTERNATIONAL GROUP, INC.
One of the world's leading insurance organizations providing insurance and other
financial services in 130 countries and territories.
COMCAST CORP. (CLASS A)
A national cable television and cellular communication owner and operator.
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
<PAGE>
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. He has over 20 years of investment experience.
It was a strong first half for both the stock and bond markets, resulting in
strong returns for the Growth Investors Portfolio. Performance was boosted by
the longer-than-average maturity of the fixed income investments in the
Portfolio and the positive performance of U.S. equities. The cash position and
international equity holdings within the Portfolio posted below-average
performance.
Because of the weaker-than-anticipated economy, building inflationary pressures
began to subside, and inflation now seems likely to stabilize at about 3.5%.
With worries about inflation declining, long-term interest rates fell sharply
from 7.5% to 6.5%. In response to the improved interest rate outlook, the
Portfolio's exposure to domestic equities was increased from 41% to 49%, while
the fixed income position was increased from 19% to 31%. The Portfolio has
focused on stock selection, with emphasis on companies showing strong profit
growth, particularly in the technology sector.
The markets are currently enjoying the benefits of rising profits, low inflation
and low interest rates. The peak in the market will come when one or more of
these factors begins to change. We will continue to focus on stock selection,
with emphasis on companies showing strong profit growth, such as those in the
communications and technology sectors. Our asset mix remains relatively
conservative, despite the increased weightings, because of the extremely high
valuation of the equity market.
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 JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Net Assets ............................ $687.0 million
Number of Issues ...................... 340
Average Quality* ...................... AAA
</TABLE>
[Asset Mix Distribution Pie Chart]
ASSET MIX DISTRIBUTION
<TABLE>
<CAPTION>
<S> <C>
Bonds ................................. 31.9%
Common Stock .......................... 48.3%
Convertibles .......................... 0.8%
International Stocks .................. 5.6%
Short-Term & Cash ..................... 13.4%
</TABLE>
LARGEST EQUITY HOLDINGS
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.
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.
INTERNATIONAL PAPER CO.
Diversified paper and forest product manufacturer. Products include specialty
paper, lumber, office products and packaging materials.
HERCULES, INC.
A diversified company with interests in specialty chemicals and materials,
including paper chemicals, polypropylene fibers and solid fuel systems.
MEDTRONIC, INC.
The world's leading producer of implantable cardiac pacemakers, this company
also makes related support systems, artificial heart valves and neurological
devices and has one of the world's largest medical device sales forces.
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.
<PAGE>
THE HUDSON RIVER TRUST
- -------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1995
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT GROWTH AND
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at value (Cost:
Money Market Portfolio--$306,334,770;
Intermediate Government Securities
Portfolio--$61,280,876;
Quality Bond Portfolio--$142,968,103;
High Yield Portfolio--$94,082,884;
Growth and Income Portfolio--$56,259,714;
Equity Index Portfolio--$69,843,336;
Common Stock Portfolio--$3,603,354,667;
Global Portfolio--$509,652,391;
International Portfolio--$6,779,128;
Aggressive Stock
Portfolio--$1,778,564,348;
Conservative Investors
Portfolio--$199,295,053;
Balanced Portfolio--$1,350,108,305;
Growth Investors Portfolio--$608,304,165)
(Notes 1 and 3) .......................... $306,363,820 $ 62,499,410 $144,952,644 $ 95,875,092 $60,767,216
Cash ....................................... 26,308 46,008 -- 1,568,399 117,833
Foreign cash ............................... -- -- -- -- --
Receivable for securities sold ............. -- -- -- 2,056,850 --
Receivable from Separate Accounts for Trust
shares sold ............................... 3,783,895 14,856 -- 333,456 12,648
Dividends, interest and other receivables . 885,575 355,687 2,168,039 1,993,441 220,248
-------------- -------------- -------------- ------------- -------------
Total assets ............................ 311,059,598 62,915,961 147,120,683 101,827,238 61,117,945
-------------- -------------- -------------- ------------- -------------
LIABILITIES:
Options written at value (Premiums
received; Common Stock Portfolio--
$19,239,554 (Notes 1 and 3) ............... -- -- -- -- --
Payable to custodian ....................... -- -- 572,148 -- --
Payable for securities purchased ........... -- 3,072,440 -- 6,026,347 856,400
Payable to Separate Accounts for Trust
shares redeemed ........................... -- -- 3,894 -- --
Unrealized depreciation of forward currency
contracts (Notes 1 and 3) ................. -- -- -- -- --
Variation margin payable on futures
contracts ................................. -- -- -- -- --
Investment advisory fees payable ........... 101,643 24,324 66,087 42,633 26,131
Trustees' fees payable ..................... 18,465 3,530 1,059 2,477 188
Accrued expenses ........................... 33,518 15,610 23,449 17,540 17,282
-------------- -------------- -------------- ------------- -------------
Total liabilities ....................... 153,626 3,115,904 666,637 6,088,997 900,001
-------------- -------------- -------------- ------------- -------------
NET ASSETS ................................. $310,905,972 $ 59,800,057 $146,454,046 $ 95,738,241 $60,217,944
============== ============== ============== ============= =============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ........................... $310,844,302 $ 68,631,172 $153,012,187 $ 97,225,035 $56,478,539
Accumulated undistributed
(overdistributed) net investment income . 32,620 6,929 707,869 21,330 9,857
Accumulated undistributed net realized
gain (loss) .............................. -- (10,056,578) (9,250,551) (3,300,332) (777,954)
Unrealized appreciation of investments
and foreign currency denominated
assets and liabilities ................... 29,050 1,218,534 1,984,541 1,792,208 4,507,502
-------------- -------------- -------------- ------------- -------------
NET ASSETS ................................. $310,905,972 $ 59,800,057 $146,454,046 $ 95,738,241 $60,217,944
============== ============== ============== ============= =============
Shares outstanding (Note 4) ................ 30,679,491 6,425,123 15,722,543 10,183,011 5,639,082
============== ============== ============== ============= =============
Net asset value, offering and redemption
price per share (Note 1) .................. $ 10.13 $ 9.31 $ 9.31 $ 9.40 $ 10.68
============== ============== ============== ============= =============
</TABLE>
See Notes to Financial Statements.
B-1
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$77,423,535 $4,348,848,073 $547,043,662 $6,833,589 $2,168,612,363 $210,921,454 $1,412,491,886 $682,477,385
1,138,167 32,867,681 6,150,525 80,210 12,608,610 400,884 2,550,873 612,868
-- 31,151 6,853,986 146,502 -- -- -- 3,251,527
3,947 14,268,656 4,509,016 24,806 38,520,908 698,039 11,244,905 569,800
74,292 -- -- 28,323 -- 20,983 -- 130,095
137,653 9,743,221 1,699,887 7,897 1,306,345 2,137,784 10,269,515 4,447,394
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
78,777,594 4,405,758,782 566,257,076 7,121,327 2,221,048,226 214,179,144 1,436,557,179 691,489,069
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
-- 38,103,060 -- -- -- -- -- --
-- -- -- -- -- -- -- --
97,284 115,005,968 10,764,505 296,478 20,029,457 -- 6,038,068 3,967,059
-- 983,182 1,512,354 -- 560,631 -- 68,845 --
-- -- 805,346 6,822 -- -- -- 106,012
39 -- -- -- -- -- -- --
20,120 1,215,370 238,392 4,890 813,867 95,644 431,515 288,579
245 107,482 3,801 -- 27,711 2,034 28,494 5,127
11,885 507,488 200,360 4,411 226,043 35,405 138,020 124,423
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
129,573 155,922,550 13,524,758 312,601 21,657,709 133,083 6,704,942 4,491,200
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
$78,648,021 $4,249,836,232 $552,732,318 $6,808,726 $2,199,390,517 $214,046,061 $1,429,852,237 $686,997,869
============== ============== ============== =============== ============== ============== ============== ==============
$70,657,938 $3,489,614,895 $519,058,442 $6,762,205 $1,734,030,111 $208,934,696 $1,369,658,323 $623,713,638
15,183 3,877,947 221,500 (170) (742) 38,849 120,603 275,830
425,576 29,713,549 (3,169,870) (243) 75,313,133 (6,553,885) (2,310,270) (11,065,317)
7,549,324 726,629,841 36,622,246 46,934 390,048,015 11,626,401 62,383,581 74,073,718
- -------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
$78,648,021 $4,249,836,232 $552,732,318 $6,808,726 $2,199,390,517 $214,046,061 $1,429,852,237 $686,997,869
============== ============== ============== =============== ============== ============== ============== ==============
6,719,564 270,204,528 37,573,973 674,658 62,963,334 19,350,103 88,909,879 41,778,954
============== ============== ============== =============== ============== ============== ============== ==============
$ 11.70 $ 15.73 $ 14.71 $ 10.09 $ 34.93 $ 11.06 $ 16.08 $ 16.44
============== ============== ============== =============== ============== ============== ============== ==============
</TABLE>
B-2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT GROWTH AND
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income** (Note 1):
Dividends (including $1,581,675 and
$674,186 from affiliated companies for
the Common Stock and Aggressive
Stock Portfolios, respectively) ...... $ -- $ -- $ -- $ -- $ 484,403
Interest ............................... 9,661,651 1,863,549 4,819,872 4,620,481 413,835
-------------- -------------- -------------- ------------- ------------
Total income .......................... 9,661,651 1,863,549 4,819,872 4,620,481 898,238
-------------- -------------- -------------- ------------- ------------
Expenses (Note 2):
Investment advisory fee ................ 627,178 134,839 375,078 231,783 123,117
Custody fees ........................... 9,839 7,824 6,464 7,973 5,464
Printing and mailing expenses .......... 35,948 6,030 13,628 5,492 2,939
Professional fees ...................... 5,434 921 2,318 1,428 737
SEC registration fees .................. -- 2,396 1,862 3,440 7,897
Trustees' fees ......................... 5,502 914 2,303 1,446 732
Miscellaneous .......................... 5,064 2,707 3,420 2,962 2,598
-------------- -------------- -------------- ------------- ------------
Total expenses ........................ 688,965 155,631 405,073 254,524 143,484
-------------- -------------- -------------- ------------- ------------
NET INVESTMENT INCOME .................... 8,972,686 1,707,918 4,414,799 4,365,957 754,754
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 3):
Realized Gain (Loss):
On securities (including $13,347,567,
$9,375, $(9,283,168) and $(15,289,254)
from affiliated companies for the
Common Stock, Global, Aggressive
Stock and Balanced Portfolios,
respectively) ......................... -- 382,508 820,844 (1,537,911) (357,718)
On options written ..................... -- -- -- -- --
On foreign currency transactions ...... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Realized gain (loss)--net ............... -- 382,508 820,844 (1,537,911) (357,718)
-------------- -------------- -------------- ------------- ------------
Change in Unrealized
Appreciation/Depreciation:
On securities .......................... 8,895 2,150,562 8,161,799 5,805,155 4,747,554
On options written ..................... -- -- -- -- --
On foreign currency transactions ...... -- -- -- -- --
On futures contracts ................... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Unrealized
appreciation/depreciation--net .......... 8,895 2,150,562 8,161,799 5,805,155 4,747,554
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN--NET ....... 8,895 2,533,070 8,982,643 4,267,244 4,389,836
-------------- -------------- -------------- ------------- ------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS .............................. $8,981,581 $4,240,988 $13,397,442 $ 8,633,201 $5,144,590
============== ============== ============== ============= ============
</TABLE>
* For the Period from April 3, 1995 (Commencement of Operations) to
June 30, 1995.
** Net of foreign taxes withheld on dividends of $5,074, $356,690,
$377,620, $3,027, $128,284, $22,369 and $53,224 for the Equity Index,
Common Stock, Global, International, Aggressive Stock, Balanced and
Growth Investors Portfolios, respectively, and on interest of $84 and
$82 for the Global and Growth Investors Portfolios, respectively.
See Notes to Financial Statements.
B-3
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 667,812 $ 32,304,898 $ 4,098,840 $17,548 $ 4,928,507 $ 242,415 $ 5,664,635 $ 2,623,907
49,035 3,778,891 2,965,251 35,565 2,243,290 5,851,071 20,200,219 9,697,047
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
716,847 36,083,789 7,064,091 53,113 7,171,797 6,093,486 25,864,854 12,320,954
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
88,631 6,744,771 1,299,663 13,195 4,559,523 527,018 2,524,040 1,532,818
11,161 66,295 135,238 1,795 12,808 17,756 18,329 38,048
3,874 393,136 48,103 271 186,628 19,133 122,807 48,135
828 63,871 8,182 46 33,417 3,254 23,378 9,686
6,948 41,600 31,890 1,139 29,574 6,088 -- 36,755
823 64,671 8,283 45 33,835 3,232 23,670 9,622
2,631 34,428 6,290 1,160 19,131 3,876 14,175 7,017
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
114,896 7,408,772 1,537,649 17,651 4,874,916 580,357 2,726,399 1,682,081
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
601,951 28,675,017 5,526,442 35,462 2,296,881 5,513,129 23,138,455 10,638,873
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
472,593 26,819,687 1,733,349 3,368 126,132,497 3,161,268 21,646,341 (2,263,021)
-- 18,379,555 -- -- -- -- -- --
-- (4,335) (3,979,513) (3,611) -- -- -- (593,464)
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
472,593 45,194,907 (2,246,164) (243) 126,132,497 3,161,268 21,646,341 (2,856,485)
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
8,015,159 602,641,299 34,204,425 54,461 139,582,526 13,336,318 86,294,273 70,700,113
-- (19,651,085) -- -- -- -- -- --
-- 209 (453,416) (7,527) -- -- -- (44,532)
(30,875) -- -- -- -- -- -- --
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
7,984,284 582,990,423 33,751,009 46,934 139,582,526 13,336,318 86,294,273 70,655,581
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
8,456,877 628,185,330 31,504,845 46,691 265,715,023 16,497,586 107,940,614 67,799,096
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- -------------
$9,058,828 $656,860,347 $37,031,287 $82,153 $268,011,904 $22,010,715 $131,079,069 $78,437,969
============== ============== ============= =============== ============== ============== ============== =============
</TABLE>
B-4
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
MONEY MARKET PORTFOLIO SECURITIES PORTFOLIO
-------------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE DECEMBER 31,
1995 1994 30, 1995 1994
--------------- --------------- ------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................ $ 8,972,686 $ 11,408,342 $ 1,707,918 $ 7,088,044
Realized gain (loss)--net ............................ -- -- 382,508 (10,439,086)
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated assets
and liabilities--net ................................. 8,895 (9,847) 2,150,562 (2,940,993)
--------------- --------------- ------------- ---------------
Net increase (decrease) in net assets from operations 8,981,581 11,398,495 4,240,988 (6,292,035)
--------------- --------------- ------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Dividends from net investment income ................. (8,925,435) (11,411,476) (1,697,602) (7,088,604)
Dividends in excess of net investment income ........ -- -- -- --
Distributions from realized gains .................... -- -- -- --
Distributions in excess of realized gains ............ -- -- -- --
Tax return of capital distributions .................. -- -- -- --
--------------- --------------- ------------- ---------------
Decrease in net assets from dividends and
distributions ....................................... (8,925,435) (11,411,476) (1,697,602) (7,088,604)
--------------- --------------- ------------- ---------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold .......................................... 167,535,916 355,157,130 14,796,170 33,872,981
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 ....................................... 8,925,435 11,411,476 1,697,602 7,088,604
Shares redeemed ...................................... (191,002,521) (289,624,991) (7,754,965) (140,156,888)
--------------- --------------- ------------- ---------------
Net increase (decrease) in net assets derived from
share transactions .................................. (14,541,170) 76,943,615 8,738,807 (96,612,489)
--------------- --------------- ------------- ---------------
INCREASE (DECREASE) IN NET ASSETS ..................... (14,485,024) 76,930,634 11,282,193 (109,993,128)
NET ASSETS, BEGINNING OF PERIOD ....................... 325,390,996 248,460,362 48,517,864 158,510,992
--------------- --------------- ------------- ---------------
NET ASSETS, END OF PERIOD* ............................ $ 310,905,972 $ 325,390,996 $59,800,057 $ 48,517,864
=============== =============== ============= ===============
</TABLE>
* Including accumulated undistributed (overdistributed) net investment
income of $32,620 and $(14,631) for the Money Market Portfolio and
$6,929 and $(3,387) for the Intermediate Government Securities Portfolio
and $707,869 and $683,882 for the Quality Bond Portfolio and $21,330 and
$(6,358) for the High Yield Portfolio and $9,857 and $(69) for the
Growth and Income Portfolio and $15,183 and $(113) for the Equity Index
Portfolio as of June 30, 1995 and December 31, 1994, respectively.
** Commencement of Operations.
See Notes to Financial Statements.
B-5
<PAGE>
<TABLE>
<CAPTION>
GROWTH AND INCOME
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO PORTFOLIO EQUITY INDEX PORTFOLIO
- ------------------------------ ------------------------------ ----------------------------- -------------------------------
SIX MONTHS
ENDED YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS MARCH 1, 1994**
JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE DECEMBER 31, ENDED JUNE 30, TO DECEMBER 31,
1995 1994 1995 1994 30, 1995 1994 1995 1994
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 4,414,799 $ 8,721,547 $ 4,365,957 $ 6,297,910 $ 754,754 $ 422,647 $ 601,951 $ 644,079
820,844 (10,171,031) (1,537,911) (1,709,091) (357,718) (409,119) 472,593 110,383
8,161,799 (4,533,902) 5,805,155 (6,485,505) 4,747,554 (250,229) 7,984,284 (434,960)
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
13,397,442 (5,983,386) 8,633,201 (1,896,686) 5,144,590 (236,701) 9,058,828 319,502
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
(4,390,812) (7,694,742) (4,338,269) (6,297,910) (744,828) (422,714) (586,655) (644,216)
-- -- -- (85,166) -- -- -- --
-- -- -- -- -- -- -- (110,383)
-- -- -- -- -- -- -- (46,993)
-- (627,091) -- -- -- -- -- --
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
(4,390,812) (8,321,833) (4,338,269) (6,383,076) (744,828) (422,714) (586,655) (801,592)
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
7,919,587 33,996,457 24,653,774 30,003,628 25,266,517 31,788,696 50,310,824 39,737,348
-- -- -- -- -- -- -- --
4,390,812 8,321,833 4,338,269 6,383,076 744,828 422,714 586,655 801,592
(2,438,452) (5,269,742) (11,443,363) (21,380,848) (1,715,534) (1,485,659) (17,469,839) (3,308,642)
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
9,871,947 37,048,548 17,548,680 15,005,856 24,295,811 30,725,751 33,427,640 37,230,298
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
18,878,577 22,743,329 21,843,612 6,726,094 28,695,573 30,066,336 41,899,813 36,748,208
127,575,469 104,832,140 73,894,629 67,168,535 31,522,371 1,456,035 36,748,208 --
- -------------- -------------- -------------- -------------- ------------- -------------- -------------- ---------------
$146,454,046 $127,575,469 $ 95,738,241 $ 73,894,629 $60,217,944 $31,522,371 $ 78,648,021 $36,748,208
============== ============== ============== ============== ============= ============== ============== ===============
</TABLE>
B-6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
INTERNATIONAL
COMMON STOCK PORTFOLIO GLOBAL PORTFOLIO PORTFOLIO
------------------------------ ------------------------------ -------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED APRIL 3, 1995**
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, TO JUNE 30,
1995 1994 1995 1994 1995
-------------- -------------- -------------- ---------------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .............................. $ 28,675,017 $ 47,048,382 $ 5,526,442 $ 3,875,457 $ 35,462
Realized gain (loss)--net .......................... 45,194,907 194,537,213 (2,246,164) 8,257,708 (243)
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ....................... 582,990,423 (317,116,958) 33,751,009 (6,372,853) 46,934
-------------- -------------- -------------- -------------- ----------
Net increase (decrease) in net assets from
operations ........................................ 656,860,347 (75,531,363) 37,031,287 5,760,312 82,153
-------------- -------------- -------------- -------------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE
1):
Dividends from net investment income ............... (28,349,586) (47,048,382) (5,520,573) (3,755,996) (35,632)
Dividends in excess of net investment income ...... -- (1,675,372) -- -- --
Distributions from realized gains .................. -- (187,473,461) -- (8,257,708) --
Distributions in excess of realized gains ......... -- -- -- (134,077) --
Tax return of capital distributions ................ -- (1,707,109) -- (395,364) --
-------------- -------------- -------------- -------------- -----------
Decrease in net assets from dividends and
distributions ..................................... (28,349,586) (237,904,324) (5,520,573) (12,543,145) (35,632)
------------- -------------- -------------- -------------- ------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ........................................ 197,183,970 520,896,037 126,970,806 302,129,663 6,732,847
Shares issued in reinvestment of dividends and
distributions ..................................... 28,349,586 237,904,324 5,520,573 12,543,145 35,632
Shares redeemed .................................... (70,452,946) (104,247,444) (32,968,058) (27,448,676) (6,274)
-------------- -------------- -------------- -------------- ------------
Net increase (decrease) in net assets derived from
share transactions ................................ 155,080,610 654,552,917 99,523,321 287,224,132 6,762,205
-------------- -------------- -------------- -------------- ------------
INCREASE (DECREASE) IN NET ASSETS ................... 783,591,371 341,117,230 131,034,035 280,441,299 6,808,726
NET ASSETS, BEGINNING OF PERIOD ..................... 3,466,244,861 3,125,127,631 421,698,283 141,256,984 --
-------------- -------------- -------------- -------------- ------------
NET ASSETS, END OF PERIOD* .......................... $4,249,836,232 $3,466,244,861 $552,732,318 $421,698,283 $6,808,726
============== ============== ============== ============== ===========
</TABLE>
- --------------------
* Including accumulated undistributed (overdistributed) net investment
income of $3,877,947 and $3,552,516 for the Common Stock Portfolio
and $221,500 and $215,631 for the Global Portfolio and $(742) and
$12,105 for the Aggressivie Stock Portfolio and $38,849 and $(1,522)
for the Conservative Investors Portfolio and $120,603 and $(26,573)
for the Balanced Portfolio and $275,830 and $146,879 for the Growth
Investors Portfolio, as of June 30, 1995 and December 31, 1994,
respectively, and $(170) for the International Portfolio, as of June
30, 1995.
** Commencement of Operations.
See Notes to Financial Statements.
B-7
<PAGE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS
AGGRESSIVE STOCK PORTFOLIO PORTFOLIO BALANCED PORTFOLIO GROWTH INVESTORS PORTFOLIO
- ------------------------------ ------------------------------ ------------------------------ ------------------------------
SIX MONTHS
ENDED YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994 1995 1994
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,296,881 $ 2,046,981 $ 5,513,129 $ 7,840,102 $ 23,138,455 $ 38,893,215 $ 10,638,873 $ 12,859,008
126,132,497 (44,726,592) 3,161,268 (9,714,278) 21,646,341 (18,710,641) (2,856,485) (7,561,554)
139,582,526 (7,416,655) 13,336,318 (3,628,013) 86,294,273 (133,794,748) 70,655,581 (17,401,140)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
268,011,904 (50,096,266) 22,010,715 (5,502,189) 131,079,069 (113,612,174) 78,437,969 (12,103,686)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(2,309,728) (2,006,386) (5,472,758) (7,847,155) (22,991,279) (38,893,215) (10,509,922) (12,859,008)
-- -- -- -- -- (2,417,748) -- (323,341)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- (49,382) -- -- -- (202,506) -- --
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(2,309,728) (2,055,768) (5,472,758) (7,847,155) (22,991,279) (41,513,469) (10,509,922) (13,182,349)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
418,298,609 691,803,895 25,546,271 72,545,380 27,831,168 163,763,699 119,779,978 240,852,053
2,309,728 2,055,768 5,472,758 7,847,155 22,991,279 41,513,469 10,509,922 13,182,349
(319,084,276) (366,875,063) (7,202,235) (7,769,739) (58,877,612) (84,972,287) (3,697,627) (14,738,042)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
101,524,061 326,984,600 23,816,794 72,622,796 (8,055,165) 120,304,881 126,592,273 239,296,360
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
367,226,237 274,832,566 40,354,751 59,273,452 100,032,625 (34,820,762) 194,520,320 214,010,325
1,832,164,280 1,557,331,714 173,691,310 114,417,858 1,329,819,612 1,364,640,374 492,477,549 278,467,224
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
$2,199,390,517 $1,832,164,280 $214,046,061 $173,691,310 $1,429,852,237 $1,329,819,612 $686,997,869 $492,477,549
============== ============== ============== ============== ============== ============== ============== ==============
</TABLE>
B-8
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ------------------------------------------------ ------------- -------------- -----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES (3.9%)
Banc One Milwaukee
Due 09/05/95 ................................... $12,000,000 $12,004,842 5.95%
--------------
BANKERS' ACCEPTANCES
Bank of New York
Due 10/19/95 ................................... 6,000,000 5,892,200 6.20
Bank of Tokyo
Due 07/07/95 ................................... 10,000,000 9,989,883 6.35
First Union Bank of N.C.
Due 10/13/95 ................................... 3,000,000 2,949,040 6.20
--------------
TOTAL BANKERS' ACCEPTANCES (6.1%) ............. 18,831,123
--------------
CERTIFICATES OF DEPOSIT
Bank Nationale De Paris
Due 08/17/95 ................................... 3,000,000 3,001,462 5.96
Mitsubishi Bank Ltd.-N.Y.
Due 07/17/95 ................................... 5,000,000 4,999,563 6.42
Rabobank
Due 07/03/95 ................................... 8,100,000 8,100,378 6.11
--------------
TOTAL CERTIFICATES OF DEPOSIT (5.2%) ......... 16,101,403
--------------
COMMERCIAL PAPER
Abbey National North America Corp.
Due 07/31/95 ................................... 1,000,000 995,108 6.15
Alamo Funding:
Due 07/14/95 ................................... 7,000,000 6,985,086 6.17
Due 08/15/95 ................................... 8,000,000 7,941,700 6.11
Allianz of America Financial
Due 08/17/95 ................................... 5,000,000 4,961,943 6.11
ASI Funding Corp.:
Due 09/15/95 ................................... 4,756,000 4,697,765 6.10
Due 09/20/95 ................................... 9,651,000 9,525,054 6.10
Beta Finance, Inc.:
Due 09/29/95 ................................... 5,000,000 4,928,750 5.99
Due 10/23/95 ................................... 5,000,000 4,909,750 6.01
Chemical Banking Corp.
Due 11/08/95 ................................... 5,000,000 4,897,806 5.97
Copley Financing Corp.
Due 07/28/95 ................................... 14,424,000 14,360,174 6.18
Corporate Asset Funding Co., Inc.
Due 09/11/95 ................................... 4,900,000 4,842,670 6.15
Diamond Asset Funding
Due 07/31/95 ................................... 7,500,000 7,463,563 6.11
Dupont (E.I.) de Nemours & Co.
Due 10/24/95 ................................... 1,200,000 1,178,150 6.01
Equipment Funding, Inc.:
Due 07/10/95 ................................... 10,000,000 9,985,250 6.17
Due 08/07/95 ................................... 4,200,000 4,174,834 6.11
Ford Motor Credit Co.
Due 09/28/95 ................................... 10,000,000 9,855,375 6.16
General Electric Financial Service
Due 09/15/95 ................................... 6,000,000 5,926,280 6.12
Goldman Sachs & Co.
Due 09/15/95 ................................... 4,000,000 3,950,600 6.15
B-9
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ------------------------------------------------ ------------- -------------- -----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
Greenwich Asset Funding:
Due 09/01/95 ................................... $ 7,200,000 $ 7,128,080 6.09%
Due 09/18/95 ................................... 7,000,000 6,910,906 6.10
International Securitization
Due 07/20/95 ................................... 10,000,000 9,968,861 6.17
Jefferson Smurfit
Due 07/05/95 ................................... 6,000,000 5,996,100 6.11
Merrill Lynch & Co., Inc.
Due 09/18/95 ................................... 3,000,000 2,961,488 6.15
Nationsbank Corp.
Due 07/25/95 ................................... 6,000,000 5,976,400 6.18
New South Wales Treasury Corp.
Due 09/26/95 ................................... 2,200,000 2,169,163 6.10
October Corp.
Due 09/08/95 ................................... 14,200,000 14,042,144 6.09
Preferred Receivables Funding
Due 08/02/95 ................................... 6,650,000 6,615,302 6.15
Progress Funding Corp., Series A
Due 07/20/95 ................................... 9,500,000 9,470,418 6.17
Sumitomo Corp. of America
Due 07/28/95 ................................... 5,000,000 4,977,725 6.22
Triple A Funding
Due 07/17/95 ................................... 10,994,000 10,965,170 6.17
Thames Global Asset Funding
Due 07/14/95 ................................... 15,000,000 14,968,042 6.17
Vattenfall Treasury
Due 07/14/95 ................................... 1,500,000 1,496,804 6.17
--------------
TOTAL COMMERCIAL PAPER (69.2%) ................ 215,226,461
--------------
EURODOLLAR CERTIFICATES OF DEPOSIT
Abbey National PLC-London Branch
Due 07/05/95 ................................... 5,000,000 4,999,977 6.39
Bayerishe Landes Bank-London Branch
Due 07/06/95 ................................... 5,000,000 4,999,979 6.39
--------------
TOTAL EURODOLLAR CERTIFICATES OF DEPOSIT
(3.2%) ......................................... 9,999,956
--------------
TIME DEPOSITS (1.5%)
Sumitomo Bank Ltd.
Due 07/03/95 ................................... 4,700,000 4,700,065 6.41
--------------
VARIABLE RATE LIBOR
Boatmen's First National Bank
Due 02/14/96 ................................... 10,000,000 10,000,158 6.31
CS First Boston
Due 03/29/96 ................................... 9,500,000 9,500,000 6.03
Goldman Sachs & Co.
Due 07/13/95 ................................... 10,000,000 9,999,812 6.41
--------------
TOTAL VARIABLE RATE LIBOR (9.4%) .............. 29,499,970
--------------
TOTAL SHORT-TERM DEBT SECURITIES (98.5%)
(Amortized Cost $306,334,770) .................. 306,363,820
CASH AND RECEIVABLES LESS LIABILITIES (1.5%) ... 4,542,152
--------------
NET ASSETS (100.0%) ............................. $310,905,972
==============
</TABLE>
* Based on market values at the close of business on June 30, 1995.
See Notes to Financial Statements.
B-10
<PAGE>
THE HUDSON RIVER TRUST
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE
COLLATERALIZED MORTGAGE
OBLIGATION (8.6%)
Federal Home Loan
Mortgage Corp.
5.75%, 05/15/05 ................. $ 2,640,530 $ 2,624,951
Federal National
Mortgage Association
6.49375% Floater, 09/25/21 (a) . 2,522,163 2,525,695
-------------
5,150,646
-------------
MORTGAGE RELATED (34.3%)
Federal Home Loan
Mortgage Corp.:
9.5%, 01/01/20 .................. 5,046 5,300
8.5%, 09/01/24 .................. 88,399 91,162
8.5%, 10/01/24 .................. 34,573 35,654
8.5%, 12/01/24 .................. 28,145 29,025
8.5%, 01/01/25 .................. 3,216,394 3,316,891
8.5%, 02/01/25 .................. 155,470 160,329
8.5%, 05/01/25 .................. 880,130 907,631
8.095%, 07/25/25 ................ 3,000,000 3,054,000
Federal National Mortgage
Association
7.823%, 05/01/27 ................ 2,093,425 2,156,229
Government National
Mortgage Association:
9.0%, 01/15/20 .................. 70,118 73,624
8.0%, 06/15/23 .................. 1,164,993 1,191,565
8.0%, 11/15/23 .................. 346,772 354,682
8.0%, 07/15/24 .................. 352,520 360,560
8.0%, 09/15/24 .................. 418,693 428,243
8.0%, 10/15/24 .................. 352,687 360,732
8.0%, 11/15/24 .................. 353,588 361,653
9.0%, 02/15/25 .................. 1,101,712 1,156,794
8.0%, 03/15/25 .................. 352,652 360,695
9.0%, 03/15/25 .................. 1,590,921 1,670,459
8.0%, 04/15/25 .................. 351,815 359,840
9.0%, 05/01/25 .................. 1,570,179 1,648,683
8.0%, 05/15/25 .................. 1,034,986 1,058,593
8.0%, 05/17/25 .................. 706,711 722,831
9.0%, 05/17/25 .................. 638,457 670,378
-------------
20,535,553
-------------
LONG-TERM DEBT SECURITIES (Continued):
U.S. GOVERNMENT AGENCIES (36.8%)
Resolution Funding S.T.R.I.P.S.
Zero Coupon, 04/15/99 ........... $ 5,000,000 $ 3,978,700
U.S. Treasury:
6.75% Note, 04/30/00 ............ 2,700,000 2,782,688
11.875% Bond, 11/15/03 .......... 6,300,000 8,579,812
7.25% Note, 5/15/04 ............. 2,400,000 2,561,249
6.5% Note, 05/15/05 ............. 4,000,000 4,082,500
-------------
21,984,949
-------------
TOTAL CREDIT SENSITIVE (79.7%) . 47,671,148
-------------
TOTAL LONG-TERM DEBT SECURITIES (79.7%)
(Amortized Cost $46,451,180) ... 47,671,148
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank:
6.0%, due 07/03/95 .............. 4,800,000 4,798,400
5.88%, due 07/10/95 ............. 10,000,000 9,985,300
-------------
TOTAL U.S. GOVERNMENT (24.7%) 14,783,700
-------------
TOTAL SHORT-TERM DEBT SECURITIES (24.7%)
(Amortized Cost $14,783,700) ... 14,783,700
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER
OF CONTRACTS
--------------
<S> <C> <C>
OPTIONS PURCHASED:
U.S. 10 Year Treasury Note
November 113 Call* .............. 62 44,562
-------------
TOTAL OPTIONS PURCHASED (0.1%)
(Premium Paid $45,996) .......... 44,562
-------------
TOTAL INVESTMENTS (104.5%)
(Amortized Cost $61,280,876) ... 62,499,410
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (- 4.5%) ............ (2,699,353)
-------------
NET ASSETS (100.0%) .............. $59,800,057
=============
</TABLE>
- --------------------
* Non-income producing.
(a) Interest rate shown on floating rate securities represents the rate at
June 30, 1995.
See Notes to Financial Statements.
B-11
<PAGE>
THE HUDSON RIVER TRUST
QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------- -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
CONSUMER NONCYCLICALS (3.6%)
FOODS
Borden, Inc.
Zero Coupon, 05/22/97+ ........ $ 6,000,000 $ 5,269,200
CREDIT SENSITIVE
BANKS (2.7%)
Banco Centrale Hispano
Cayman Islands
8.25%, 06/15/04 ............... 3,725,000 3,926,783
-------------
FINANCIAL SERVICES (7.2%)
Goldman Sachs & Co.
6.625% Floating Rate,
02/23/98+ (a) ................. 4,000,000 3,997,200
Siemens
8.0%, 06/24/02 ................ 6,000,000 6,494,400
-------------
10,491,600
-------------
MORTGAGE RELATED (9.3%)
Federal National Mortgage
Association
6.0%, 12/01/09 ................ 14,112,000 13,660,416
Government National
Mortgage Association
7.0%, 12/15/23 ................ 1,083 1,065
-------------
13,661,481
-------------
FOREIGN GOVERNMENT (3.6%)
Italy Global Bond
6.875%, 09/27/23 .............. 6,000,000 5,325,840
-------------
U.S. GOVERNMENT (55.6%)
Federal Home Loan Bank:
5.725%, 06/15/98 .............. 20,000,000 19,830,000
U.S. Treasury:
6.875% Note, 08/31/99 ......... 7,500,000 7,741,403
7.75% Note, 01/31/00 .......... 10,000,000 10,687,500
6.75% Note, 04/30/00 .......... 13,590,000 14,006,194
7.5% Note, 02/15/05 ........... 17,750,000 19,336,406
7.625% Bond, 02/15/25 ......... 4,080,000 4,602,750
LONG-TERM DEBT SECURITIES: (Continued)
Federal Farmers Credit
7.64% Medium Term Note,
02/03/98 ...................... $ 5,000,000 $ 5,185,800
-------------
81,390,053
-------------
TOTAL CREDIT SENSITIVE (78.4%) 114,795,757
-------------
TECHNOLOGY
TELECOMMUNICATIONS (8.6%)
Tele-Communications, Inc.
9.8%, 02/01/12 ................ 5,800,000 6,369,479
Time Warner Communications
9.15%, 02/01/23 ............... 6,000,000 6,223,020
-------------
TOTAL TECHNOLOGY (8.6%) ...... 12,592,499
-------------
TOTAL LONG-TERM DEBT SECURITIES (90.6%)
(Amortized Cost $130,672,915) 132,657,456
-------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (5.0%)
Commerzbank
6.25%, due 07/03/95 ........... 7,300,000 7,297,465
-------------
U.S. GOVERNMENT
Federal Home Loan
Mortgage Corp.:
6.10%, due 07/03/95 ........... 3,100,000 3,098,949
5.81%, due 07/05/95 ........... 1,900,000 1,898,774
-------------
TOTAL U.S. GOVERNMENT (3.4%) . 4,997,723
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------- -------------
<S> <C> <C>
TOTAL SHORT-TERM DEBT SECURITIES (8.4%)
(Amortized Cost $12,295,188) . 12,295,188
-------------
TOTAL INVESTMENTS (99.0%)
(Amortized Cost $142,968,103) 144,952,644
CASH AND RECEIVABLES
LESS LIABILITIES (1.0%) ....... 1,501,402
-------------
NET ASSETS (100.0%) ............ $146,454,046
=============
</TABLE>
- ---------------------
+ Security exempt from registration under Rule 144A of the Securities
Act 1933. These securities may only be resold to qualified
institutional buyers.
(a) Interest rate shown on floating rate securities represents the rate
at June 30, 1995.
See Notes to Financial Statements.
B-12
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ------------------------------- ------------ -----------
<S> <C> <C>
COMMON STOCKS:
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.2%)
AVI Holdings, Inc.--Warrants* . 3,300 $ 148,500
-----------
RETAIL--GENERAL (0.0%)
Eye Care Centers of America--
Warrants* ..................... 1,500 15,000
-----------
TOTAL CONSUMER CYCLICALS (0.2%) 163,500
-----------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.2%)
Thermoscan (Class B)*+ ......... 19,500 117,000
Wright Medical Technology,
Inc.-- Warrants* .............. 412 67,980
-----------
184,980
-----------
SOAPS & TOILETRIES (0.0%)
Renaissance Cosmetics--
Warrants* ..................... 2,000 0
-----------
TOTAL CONSUMER NONCYCLICALS (0.2%) 184,980
-----------
CREDIT SENSITIVE (0.0%)
FOREIGN GOVERNMENT
United Mexican States (Class A)
--Warrants* ................... 2,000,000 0
-----------
ENERGY (0.0%)
OIL--SUPPLIES & CONSTRUCTION
Transamerican Refining--
Warrants* ..................... 16,835 54,714
-----------
TECHNOLOGY (0.0%)
TELECOMMUNICATIONS
American Telecasting--
Warrants* ..................... 10,000 0
-----------
TOTAL COMMON STOCKS (0.4%)
(Cost $242,776) ............... 403,194
-----------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (7.0%)
Buckeye Cellulos
10.25%, 05/15/01 .............. $1,000,000 995,000
G-I Holdings
Zero Coupon Sr. Disc. Note,
10/01/98 ...................... 2,000,000 1,340,000
Pioneer Americas Corp.
13.375%, 04/01/05+ ............ 1,500,000 1,545,000
Sherritt Gordon
9.75%, 04/01/03 ............... 2,000,000 1,940,000
Trans Resources, Inc.
11.875% Series B Sr. Sub.
Note, 07/01/02 ................ 1,000,000 907,500
-----------
6,727,500
-----------
PAPER (10.2%)
Domtar, Inc.
12.0%, 04/15/01 ............... 1,300,000 1,495,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
Grupo Industrial Durango
12.0%, 07/15/01 ................. $1,800,000 $1,332,000
Indah Kiat International Finance
11.875%, 06/15/02 ............... 1,500,000 1,515,000
Repap New Brunswick:
9.875%, 07/15/00 ................ 1,000,000 1,010,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
10.625%, 04/15/05 ............... 1,000,000 1,010,000
Repap Wisconsin
9.25%, 02/01/02 ................. 1,500,000 1,451,250
Sweetheart Cup
10.5%, 09/01/03 ................. 1,000,000 990,000
Williamhouse Regency of Delaware,
Inc.
11.5%, 06/15/05 ................. 1,000,000 995,000
------------
9,798,250
------------
STEEL (1.4%)
Algoma Steel
12.375%, 07/15/05 ............... 1,500,000 1,352,312
------------
TOTAL BASIC MATERIALS (18.6%) .. 17,878,062
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (2.5%)
American Media Operation
11.625%, 11/15/04 ............... 1,500,000 1,605,000
United States Banknote Corp.
10.375% Sr. Note, 06/01/02 ..... 1,000,000 820,000
------------
2,425,000
------------
TRUCKING, SHIPPING (1.7%)
Gearbulk Holding Ltd.
11.25%, 12/01/04 ................ 1,500,000 1,590,000
------------
TOTAL BUSINESS SERVICES (4.2%) . 4,015,000
------------
CAPITAL GOODS
AEROSPACE (1.7%)
Rohr, Inc.
11.625%, 05/15/03 ............... 1,500,000 1,582,500
------------
BUILDING & CONSTRUCTION (1.6%)
International Wire Corp.
11.75%, 06/01/05+ ............... 1,500,000 1,507,500
------------
MACHINERY (5.3%)
Monarch Acquisition
12.5%, 07/01/03 ................. 1,500,000 1,511,250
Primeco Corp.
12.750%, 03/01/05 ............... 1,500,000 1,530,000
Specialty Equipment
11.375%, 12/01/03 ............... 2,000,000 2,055,000
------------
5,096,250
------------
TOTAL CAPITAL GOODS (8.6%) ..... 8,186,250
------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (9.8%)
Apparel Ventures, Inc.
12.25%, 12/31/00 ................ 1,000,000 870,000
CMI Industries
9.5%, 10/01/03 .................. 2,000,000 1,830,000
</TABLE>
B-13
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
Hosiery Corp. of America
13.75%, 08/01/02+ ............... $1,500,000 $ 1,526,250
Ithaca Industries
11.125%, 12/15/02 ............... 1,500,000 1,425,000
PT Polysindo Eka Perkasa
13.0%, 06/01/01 ................. 2,175,000 2,196,750
Tultex Corp.
10.625%, 03/15/05 ............... 1,500,000 1,530,000
------------
9,378,000
------------
HOUSEHOLD FURNITURE, APPLIANCES (1.0%)
Cort Furniture
12.0%, 09/01/00 ................. 1,000,000 975,000
------------
RETAIL--GENERAL (2.9%)
Eye Care Centers of America
12.0%, 10/01/03 ................. 1,500,000 1,245,000
FTD Acquisition
14.0% Units, 12/15/01+ .......... 1,500,000 1,518,750
------------
2,763,750
------------
TOTAL CONSUMER CYCLICALS (13.7%) 13,116,750
------------
CONSUMER NONCYCLICALS
CONTAINERS (4.5%)
Calmar Spray Systems
14.0%, 02/15/99 ................. 2,000,000 2,040,000
Gaylord Container
Zero Coupon, 05/15/05 (b) ...... 1,700,000 1,657,500
Silgan Corp.
11.75% Deb., 06/15/02 ........... 600,000 627,000
------------
4,324,500
------------
HOSPITAL SUPPLIES & SERVICES (3.1%)
Thermoscan:
13.5% Floating Rate,
08/15/01+ (a) (c) ............... 500,000 502,500
13.5%, Increasing Rate,
08/15/01+ ....................... 1,500,000 1,507,500
Wright Medical Technology, Inc.
10.75%, 07/01/00 ................ 1,000,000 1,005,000
------------
3,015,000
------------
RETAIL--FOOD (2.4%)
Big V Supermarkets
11.0%, 02/15/04 ................. 1,000,000 840,000
Ralphs Grocery Co.
10.45%, 06/15/04 ................ 1,500,000 1,500,000
------------
2,340,000
------------
SOAPS & TOILETRIES (3.3%)
Renaissance Cosmetics
13.75%, 08/15/01 (a) ............ 1,000,000 1,020,000
Revlon Worldwide
Zero Coupon, 03/15/98 ........... 3,000,000 2,077,500
------------
3,097,500
------------
TOTAL CONSUMER NONCYCLICALS (13.3%) 12,777,000
------------
CREDIT SENSITIVE
BANKS (1.7%)
First Nationwide Holdings
12.25%, 05/15/01 ................ 1,500,000 1,590,000
------------
FINANCIAL SERVICES (1.4%)
Home Holdings:
7.75%, 12/15/98 ................. $1,000,000 $ $830,000
8.625%, 12/15/03 ................ 750,000 558,750
------------
1,388,750
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
FOREIGN GOVERNMENT (7.0%)
Bulgaria Discount Bonds
7.5625% Floating Rate,
Series A, 07/28/24 (c) .......... 2,000,000 992,500
Central Bank of Nigeria
6.25%, 11/15/20 ................. 2,000,000 880,000
Republic of Brazil
8.0%, 04/15/14 .................. 2,080,800 1,024,794
Republic of Ecuador
7.25% Floating Rate,
02/28/25 (c) .................... 1,500,000 746,250
Republic of Poland
3.25% Floating Rate,
10/27/14 (c) .................... 3,000,000 1,822,500
United Mexican States
6.25% Series A, 12/31/19 ........ 2,000,000 1,217,500
------------
6,683,544
------------
REAL ESTATE (1.5%)
HMH Properties, Inc.
9.5%, 05/15/05+ ................. 1,500,000 1,451,250
------------
UTILITY--GAS (2.0%)
Bridas Corp.
12.5%, 11/15/99 ................. 2,100,000 1,900,500
------------
TOTAL CREDIT SENSITIVE (13.6%) . 13,014,044
------------
ENERGY
OIL--DOMESTIC (4.5%)
Gulf Canada Resources
9.625%, 07/01/05 ................ 1,000,000 995,000
Invergas
12.5%, 12/16/99+ ................ 2,000,000 1,850,000
WRT Energy Corp. .................
13.875%, 03/01/02 ............... 1,500,000 1,470,000
------------
4,315,000
------------
OIL--SUPPLIES & CONSTRUCTION (1.1%)
Transamerican Refining
16.5%, 02/15/02 ................. 1,000,000 1,055,000
------------
TOTAL ENERGY (5.6%) ............. 5,370,000
------------
TECHNOLOGY
ELECTRONICS (2.7%)
Panamsat L.P.
9.75% Sr. Sec. Notes, 08/01/00 . 2,500,000 2,550,000
------------
TELECOMMUNICATIONS (12.1%)
American Telecasting
Zero Coupon, 06/15/04 (b) ...... 2,000,000 1,180,000
Bell Cablemedia
Zero Coupon, 07/15/04 (b) ...... 2,000,000 1,345,000
Century Communications
9.5% Sr. Note, 03/01/05 ......... 1,500,000 1,488,750
CF Cable TV, Inc.
11.625%, 02/15/05 ............... 2,000,000 2,120,000
</TABLE>
B-14
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
Intermedia Communications
13.5%, 06/01/05+ ................ $1,000,000 $ 1,005,000
Marcus Cable:
Zero Coupon, 08/01/04 (b) ...... 1,000,000 632,500
Zero Coupon, 12/15/05 (b) ...... 2,500,000 1,331,250
Mobile Telecommunications
13.5%, 12/15/02 ................. 1,000,000 1,072,500
People's Choice TV Corp.
Zero Coupon, 06/01/04 (b) ...... 3,000,000 1,425,000
------------
11,600,000
------------
TOTAL TECHNOLOGY (14.8%) ........ 14,150,000
------------
DIVERSIFIED
MISCELLANEOUS (2.9%)
Cabot Safety
12.5%, 07/15/05 ................. 1,000,000 1,007,500
Day International, Inc.
11.125%, 06/01/05 ............... 1,750,000 1,758,750
------------
TOTAL DIVERSIFIED (2.9%) ........ 2,766,250
------------
TOTAL LONG-TERM DEBT SECURITIES (95.3%)
(Amortized Cost $89,641,566) ... 91,273,356
SHORT-TERM DEBT SECURITIES:
------------
COMMERCIAL PAPER (4.4%)
Commerzbank
6.25%, due 07/03/95 ............. $4,200,000 $ 4,198,542
------------
TOTAL SHORT-TERM DEBT SECURITIES (4.4%)
(Amortized Cost $4,198,542) .... 4,198,542
------------
TOTAL INVESTMENTS (100.1%)
(Cost/Amortized Cost $94,082,884) 95,875,092
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (-0.1%) ............. (136,851)
------------
NET ASSETS (100.0%) .............. $95,738,241
============
</TABLE>
- --------------------
* Non-income producing.
+ 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 June 30, 1995.
See Notes to Financial Statements.
B-15
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (4.0%)
Avery Dennison Corp. ............ 15,000 $ 600,000
Dow Chemical Co. ................ 5,000 359,375
Dupont (E.I.) de Nemours & Co. . 20,000 1,375,000
Union Carbide Corp. ............. 3,000 100,125
------------
2,434,500
------------
PAPER (2.0%)
Union Camp Corp. ................ 20,000 1,157,500
------------
TOTAL BASIC MATERIALS (6.0%) .. 3,592,000
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.4%)
Johnson Controls, Inc. .......... 15,000 847,500
------------
PRINTING, PUBLISHING &
BROADCASTING (1.2%)
Capital Cities ABC, Inc. ........ 2,000 216,000
Jostens, Inc. ................... 25,000 531,250
------------
747,250
------------
PROFESSIONAL SERVICES (1.2%)
GATX Corp. ...................... 15,000 706,875
------------
TOTAL BUSINESS SERVICES (3.8%) 2,301,625
------------
CAPITAL GOODS
AEROSPACE (1.7%)
Northrop Grumman Corp. .......... 20,000 1,042,500
------------
BUILDING MATERIALS & FOREST PRODUCTS (1.6%)
Weyerhaeuser Co. ................ 20,000 942,500
------------
ELECTRICAL EQUIPMENT (1.9%)
General Electric Co. ............ 20,000 1,127,500
------------
MACHINERY (1.4%)
Deere & Co. ..................... 10,000 856,250
------------
TOTAL CAPITAL GOODS (6.6%) .... 3,968,750
------------
CONSUMER CYCLICALS
AUTO RELATED (0.5%)
Dana Corp. ...................... 4,000 114,500
Echlin, Inc. .................... 5,000 173,750
------------
288,250
------------
RETAIL--GENERAL (2.0%)
Sears Roebuck & Co. ............. 20,000 1,197,500
------------
TOTAL CONSUMER CYCLICALS (2.5%) 1,485,750
------------
CONSUMER NONCYCLICALS
DRUGS (2.4%)
Bristol-Myers Squibb Co. ........ 20,000 1,362,500
Pfizer, Inc. .................... 1,000 92,375
------------
1,454,875
------------
HOSPITAL SUPPLIES & SERVICES (1.8%)
Baxter International, Inc. ..... 30,000 1,091,250
------------
SOAPS & TOILETRIES (1.1%)
Clorox Co. ...................... 10,000 652,500
COMMON STOCKS (Continued):
------------
TOBACCO (3.3%)
Philip Morris Cos., Inc. ........ 15,000 $1,115,625
UST, Inc. ....................... 30,000 892,500
------------
2,008,125
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
TOTAL CONSUMER NONCYCLICALS (8.6%) 5,206,750
------------
CREDIT SENSITIVE
BANKS (4.2%)
Bank of New York Co. ............ 32,000 1,292,000
First Bank Systems .............. 30,000 1,230,000
------------
2,522,000
------------
FINANCIAL SERVICES (1.4%)
American Express Co. ............ 10,000 351,250
MBNA Corp. ...................... 15,000 506,250
------------
857,500
------------
INSURANCE (1.6%)
Saint Paul Cos., Inc. ........... 20,000 985,000
------------
UTILITY--ELECTRIC (4.6%)
Duke Power Co. .................. 15,000 622,500
Houston Industries, Inc. ........ 20,000 842,500
Portland General Corp. .......... 30,000 663,750
Teco Energy, Inc. ............... 30,000 656,250
------------
2,785,000
------------
UTILITY--TELEPHONE (1.9%)
Ameritech Corp. ................. 25,000 1,100,000
------------
TOTAL CREDIT SENSITIVE
(13.7%) ........... ........... 8,249,500
------------
ENERGY
COAL & GAS PIPELINES (2.1%)
MCN Corp. ....................... 30,000 592,500
Williams Cos., Inc. ............. 20,000 697,500
------------
1,290,000
------------
OIL--DOMESTIC (3.2%)
Atlantic Richfield Co. .......... 10,000 1,097,500
Phillips Petroleum Co. .......... 25,000 834,375
------------
1,931,875
------------
OIL--INTERNATIONAL (1.3%)
Mobil Corp. ..................... 8,000 768,000
------------
OIL--SUPPLIES & CONSTRUCTION (0.6%)
Halliburton Co. ................. 10,000 357,500
------------
RAILROADS (0.6%)
Norfolk Southern Corp. .......... 5,000 336,875
------------
TOTAL ENERGY (7.8%) ............ 4,684,250
------------
TECHNOLOGY (1.9%)
OFFICE EQUIPMENT
Xerox Corp. ..................... 10,000 1,172,500
------------
DIVERSIFIED (0.8%)
MISCELLANEOUS
Minnesota Mining & Manufacturing
Co. ............................ 8,000 458,000
------------
TOTAL COMMON STOCKS (51.7%)
(Cost $28,593,636) ............. 31,119,125
------------
</TABLE>
B-16
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
PREFERRED STOCKS:
BASIC MATERIALS (1.0%)
PAPER
Bowater, Inc.
7.0% Conv. Series B ............ 16,300 $ 615,325
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.7%)
LCI International
5.0% Conv. ..................... 10,700 441,375
------------
PROFESSIONAL SERVICES (0.6%)
General Motors Corp.
6.5% Conv. Series C ............ 5,500 346,500
------------
TOTAL BUSINESS SERVICES (1.3%) 787,875
------------
CONSUMER CYCLICALS (0.3%)
RETAIL--GENERAL
Best Buy Capital LP
6.5% Conv. ..................... 4,900 208,863
------------
CONSUMER NONCYCLICALS (0.0%)
DRUGS
Gensia Pharmaceuticals, Inc.
$3.75 Conv.+ ................... 1,800 17,325
------------
CREDIT SENSITIVE
FINANCIAL SERVICES (1.0%)
Allstate Corp.
$2.30 Conv. .................... 9,800 399,350
First USA
$6.25 Conv. .................... 5,500 222,750
------------
TOTAL CREDIT SENSITIVE (1.0%) . 622,100
------------
ENERGY (0.4%)
RAILROADS
Burlington Northern, Inc.
6.25% Conv. Series A ........... 3,900 263,250
------------
TECHNOLOGY (1.1%)
ELECTRONICS
National Semiconductor Corp.
$3.25 Conv. .................... 5,800 572,025
------------
TOTAL PREFERRED STOCKS (5.1%)
(Cost $2,680,160) .............. 3,086,763
------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.5%)
PAPER
Stone Container Corp.
8.875% Conv. Sub. Deb.,
07/15/00 ....................... $150,000 300,000
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
Thermo Electron Corp.
5.0% Euro Conv., 04/15/01 ..... 345,000 466,613
------------
PROFESSIONAL SERVICES (1.4%)
Danka Business Systems
6.75% Conv., 04/01/02+ ......... 250,000 263,750
First Financial Management Corp.
5.0% Conv., 12/15/99 ........... 425,000 576,406
------------
840,156
------------
TOTAL BUSINESS SERVICES (2.2%) 1,306,769
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
CAPITAL GOODS
MACHINERY (1.7%)
Solectron Corp.
Zero Coupon Conv. Sub. Note,
05/05/12 ......................... $930,000 $ 660,300
Titan Wheel International
4.75% Conv., 12/01/00 ............ 275,000 382,250
------------
TOTAL CAPITAL GOODS (1.7%) ...... 1,042,550
------------
CONSUMER CYCLICALS
AIRLINES (0.7%)
Delta Air Lines, Inc.
3.23% Conv., 06/15/03 ............ 445,000 427,200
------------
LEISURE RELATED (0.4%)
Carnival Cruise Lines, Inc.
4.5% Conv. Sub. Note,
07/01/97 ......................... 190,000 262,438
------------
RETAIL--GENERAL (1.1%)
Lowes Cos., Inc.
3.0% Conv., 07/22/03 ............. 180,000 213,750
Office Depot, Inc.
Zero Coupon Conv., 11/01/08 ..... 630,000 410,288
------------
624,038
------------
TOTAL CONSUMER CYCLICALS (2.2%) 1,313,676
------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (1.9%)
Integrated Health Services, Inc.
5.75% Conv., 01/01/01 ............ 395,000 425,613
Omnicare, Inc.
5.75% Conv., 10/01/03 ............ 205,000 389,244
Sun Healthcare Group
6.0% Conv., 03/01/04 ............. 335,000 315,738
------------
1,130,595
------------
RETAIL--FOOD (0.5%)
Kroger Co.
6.375% Jr. Sub. Conv. Note,
12/01/99 ......................... 205,000 295,713
------------
TOTAL CONSUMER NONCYCLICALS (2.4%) 1,426,308
------------
CREDIT SENSITIVE
BANKS (0.5%)
Bank of New York Co.
7.5% Conv., 08/15/01 ............. 135,000 277,594
------------
FINANCIAL SERVICES (0.3%)
Medaphis Corp.
6.5% Conv., 01/01/00+ ............ 131,000 207,308
------------
UTILITY--TELEPHONE (0.7%)
LDDS Communications, Inc.
5.0% Conv., 08/15/03 ............. 465,000 445,238
------------
TOTAL CREDIT SENSITIVE (1.5%) ... 930,140
------------
ENERGY
OIL--DOMESTIC (0.6%)
Apache Corp.:
6.0% Conv., 01/15/02+ ............ 150,000 166,500
6.0% Euro Conv., 01/15/02 ........ 190,000 210,900
------------
377,400
------------
</TABLE>
B-17
<PAGE>
THE HUDSON RIVER TRUST
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Amoco Canada
7.375% Conv. Sub. Deb.,
09/01/13 ......................... $ 225,000 $ 283,500
------------
TOTAL ENERGY (1.1%) .............. 660,900
------------
TECHNOLOGY
ELECTRONICS (9.4%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02 ......................... 400,000 421,500
Arrow Electronics, Inc.
5.75% Conv., 10/15/02 ............ 395,000 601,881
Cypress Semiconductor
3.15% Conv., 03/15/01+ ........... 445,000 664,719
EMC Corp.
4.25% Conv., 01/01/01 ............ 770,000 1,026,982
General Instrument Corp.
5.0% Conv., 06/15/00 ............. 370,000 611,425
Integrated Device Technology, Inc.
5.5% Conv., 06/01/02 ............. 590,000 618,763
Lam Research Corp.
6.0% Conv. Sub. Deb.,
05/01/03 ......................... 205,000 530,438
LSI Logic Corp.
5.5% Conv., 03/15/01+ ............ 125,000 405,156
Motorola, Inc.
Zero Coupon Conv., 09/27/13 ..... 625,000 511,719
3Com Corp.
10.25% Conv., 11/01/01+ .......... 230,000 295,263
------------
TOTAL TECHNOLOGY (9.4%) .......... 5,687,846
------------
TOTAL LONG-TERM DEBT SECURITIES (21.0%)
(Amortized Cost $11,092,779) .... 12,668,189
SHORT-TERM DEBT SECURITIES:
------------
U.S. GOVERNMENT
Federal Home Loan Bank
5.91%, due 07/05/95 .............. $3,100,000 $ 3,097,964
Federal Home Loan Mortgage Corp:
6.10%, due 07/03/95 .............. 7,000,000 6,997,628
5.81%, due 07/05/95 .............. 3,800,000 3,797,547
------------
TOTAL U.S. GOVERNMENT (23.1%) 13,893,139
------------
TOTAL SHORT-TERM DEBT SECURITIES (23.1%)
(Amortized Cost $13,893,139) .... 13,893,139
------------
TOTAL INVESTMENTS (100.9%)
(Cost/Amortized Cost $56,259,714) 60,767,216
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (-0.9%) .............. (549,272)
------------
NET ASSETS (100.0%) ............... $60,217,944
============
</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.
B-18
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.6%)
Air Products & Chemicals, Inc. .. 2,000 $ 111,500
Avery Dennison Corp. ............. 1,000 40,000
Dow Chemical Co. ................. 5,000 359,375
Dupont (E.I.) de Nemours
& Co. ........................... 9,900 680,625
Eastman Chemical Company ......... 1,500 89,250
Ecolab, Inc. ..................... 1,100 26,950
FMC Corp.* ....................... 700 47,075
Goodrich (B.F.) Co. .............. 500 26,813
Grace (W.R.) & Co. ............... 1,700 104,338
Hercules, Inc. ................... 2,200 107,250
Millipore Corp. .................. 400 27,000
Monsanto Co. ..................... 2,100 189,263
Nalco Chemical Co. ............... 1,200 43,650
Rohm & Haas Co. .................. 1,300 71,338
Union Carbide Corp. .............. 2,600 86,775
------------
2,011,202
------------
CHEMICALS--SPECIALTY (0.3%)
Great Lakes Chemical Corp. ...... 1,200 72,300
Morton International, Inc. ...... 2,600 76,050
Raychem Corp. .................... 800 30,700
Sigma Aldrich .................... 900 44,213
------------
223,263
------------
METALS & MINING (1.3%)
Alcan Aluminium Ltd. ............. 4,300 130,075
Aluminum Co. of America .......... 3,400 170,425
Asarco, Inc. ..................... 900 27,450
Barrick Gold Corp. ............... 6,600 166,650
Cyprus Amax Minerals Co. ......... 1,600 45,600
Engelhard Corp. .................. 1,700 72,888
Homestake Mining Co. ............. 2,500 41,250
Inco Ltd. ........................ 2,100 59,325
Newmont Mining Corp. ............. 1,548 64,823
Phelps Dodge Corp. ............... 1,300 76,700
Placer Dome, Inc. ................ 4,100 107,113
Reynolds Metals Co. .............. 1,200 62,100
Santa Fe Pacific Gold Corp. ..... 2,420 29,343
------------
1,053,742
------------
PAPER (1.5%)
Boise Cascade Corp. .............. 800 32,400
Champion International Corp. .... 1,700 88,613
Federal Paper Board, Inc. ........ 800 28,300
Georgia Pacific Corp. ............ 1,700 147,475
International Paper Co. .......... 2,300 197,225
James River Corp. of Virginia ... 1,500 41,438
Kimberly Clark Corp. ............. 2,900 173,638
Mead Corp. ....................... 1,000 59,375
Moore Corp. Ltd. ................. 1,800 39,825
Potlatch Corp. ................... 600 25,050
Scott Paper Co. .................. 2,800 138,600
Stone Container Corp.* ........... 1,100 23,375
Temple Inland, Inc. .............. 1,000 47,625
Union Camp Corp. ................. 1,300 75,238
Westvaco Corp. ................... 1,200 53,100
------------
1,171,277
COMMON STOCKS (Continued):
------------
STEEL (0.3%)
Bethlehem Steel Corp.* ........... 2,100 $ 34,125
Inland Steel Industries, Inc. ... 900 27,450
Nucor Corp. ...................... 1,600 85,600
USX-U.S. Steel Group ............. 1,300 44,688
Worthington Industries, Inc. .... 1,800 36,788
------------
228,651
------------
TOTAL BASIC MATERIALS (6.0%) ... 4,688,135
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Browning-Ferris Industries, Inc. 4,000 144,500
Johnson Controls, Inc. ........... 700 39,550
WMX Technologies, Inc. ........... 8,700 246,863
------------
430,913
------------
PRINTING, PUBLISHING &
BROADCASTING (2.8%)
CBS, Inc. ........................ 1,110 74,370
Capital Cities ABC, Inc. ......... 2,800 302,400
Comcast Corp. (Class A) SPL ..... 4,500 83,531
Deluxe Corp. ..................... 1,400 46,375
Donnelley (R.R.) & Sons Co. ..... 2,900 104,400
Dow Jones & Co., Inc. ............ 1,800 66,375
Dun & Bradstreet Corp. ........... 3,100 162,750
Gannett Co. ...................... 2,600 141,050
Jostens, Inc. .................... 1,300 27,625
King World Productions, Inc.* ... 700 28,350
Knight-Ridder, Inc. .............. 900 51,188
McGraw-Hill, Inc. ................ 900 68,288
New York Times Co. ............... 1,700 39,950
Tele-Communications, Inc.
(Class A)* ...................... 11,800 276,563
Time Warner, Inc. ................ 7,100 291,988
Times Mirror Co. (Class A) ...... 1,900 45,363
Tribune Co. ...................... 1,200 73,650
Viacom, Inc. (Class A)* .......... 300 13,950
Viacom, Inc. (Class B)* .......... 6,200 287,525
------------
2,185,691
------------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. ................ 1,900 78,138
Interpublic Group Cos., Inc. .... 1,500 56,250
Safety Kleen Corp. ............... 1,800 29,025
Service Corp. International ..... 1,700 53,763
------------
217,176
------------
TRUCKING, SHIPPING (0.2%)
Consolidated Freightways, Inc. .. 800 17,700
Federal Express Corp.* ........... 900 54,675
Laidlaw, Inc. (Class B) .......... 3,300 31,763
Roadway Services, Inc. ........... 700 33,075
Ryder System, Inc. ............... 1,400 33,425
------------
170,638
------------
TOTAL BUSINESS SERVICES (3.8%) . 3,004,418
------------
CAPITAL GOODS
AEROSPACE (2.0%)
Boeing Co. ....................... 6,100 382,013
General Dynamics Corp. ........... 1,100 48,813
</TABLE>
B-19
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Lockheed Martin Corporation ..... 3,604 $ 227,503
Loral Corp. ...................... 1,600 82,800
McDonnell Douglas Corp. .......... 2,100 161,175
Northrop Grumman Corp. ........... 900 46,913
Raytheon Co. ..................... 2,300 178,538
Rockwell International Corp. .... 4,000 183,000
TRW, Inc. ........................ 1,200 95,850
United Technologies Corp. ........ 2,200 171,875
------------
1,578,480
------------
BUILDING & CONSTRUCTION (0.0%)
Centex Corp. ..................... 800 22,600
------------
BUILDING MATERIALS &
FOREST PRODUCTS (0.8%)
Armstrong World Industries, Inc. 700 35,088
Crane Co. ........................ 800 29,000
Louisiana Pacific Corp. .......... 2,000 52,500
Masco Corp. ...................... 2,900 78,300
Owens Corning Fiberglass Corp.* . 900 33,188
PPG Industries, Inc. ............. 3,800 163,400
Sherwin Williams Co. ............. 1,500 53,438
Weyerhaeuser Co. ................. 3,800 179,075
------------
623,989
------------
ELECTRICAL EQUIPMENT (2.8%)
Emerson Electric Co. ............. 4,200 300,300
General Electric Co. ............. 30,400 1,713,800
Grainger (W.W.), Inc. ............ 900 52,875
Thomas & Betts Corp. ............. 400 27,350
Westinghouse Electric Corp. ..... 6,400 93,600
------------
2,187,925
------------
MACHINERY (1.4%)
Briggs & Stratton Corp. .......... 800 27,600
Caterpillar, Inc. ................ 3,600 231,300
Cincinnati Milacron, Inc. ........ 1,100 29,700
Cooper Industries, Inc. .......... 2,000 79,000
Cummins Engine, Inc. ............. 700 30,538
Deere & Co. ...................... 1,600 137,000
Dover Corp. ...................... 1,000 72,750
Fluor Corp. ...................... 1,600 83,200
Foster Wheeler Corp. ............. 900 31,725
General Signal Corp. ............. 800 31,800
Harnischfeger Industries Corp. .. 900 31,163
Illinois Tool Works, Inc. ........ 2,100 115,500
Ingersoll Rand Co. ............... 1,900 72,675
Pall Corp. ....................... 2,000 44,500
Parker Hannifin Corp. ............ 1,400 50,750
Timken Co. ....................... 600 27,675
Varity Corp.* .................... 700 30,800
------------
1,127,676
------------
TOTAL CAPITAL GOODS (7.0%) ..... 5,540,670
------------
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* ....................... 1,400 104,475
Delta Air Lines, Inc. ............ 900 66,375
Southwest Airlines Co. ........... 2,500 59,688
------------
230,538
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
APPAREL, TEXTILE (0.5%)
Fruit of the Loom, Inc.* ......... 1,100 $ 23,238
Liz Claiborne, Inc. .............. 1,300 27,625
National Service Industries, Inc. 900 25,988
Nike, Inc. ....................... 1,300 109,200
Reebok International, Ltd. ...... 1,400 47,600
Russell Corp. .................... 1,400 40,250
Springs Industries, Inc. ......... 600 22,350
VF Corp. ......................... 1,100 59,125
------------
355,376
------------
AUTO RELATED (0.5%)
Cooper Tire & Rubber Co. ......... 1,200 29,250
Dana Corp. ....................... 1,800 51,525
Eaton Corp. ...................... 1,300 75,563
Echlin, Inc. ..................... 1,000 34,750
Genuine Parts Co. ................ 2,200 83,325
Goodyear Tire & Rubber Co. ...... 2,700 111,375
Snap-On Tools Corp. .............. 800 31,000
------------
416,788
------------
AUTOS & TRUCKS (2.0%)
Chrysler Corp. ................... 6,900 330,338
Ford Motor Co. ................... 18,500 550,375
General Motors Corp. ............. 13,500 632,813
Navistar International Corp.* ... 1,900 28,738
Paccar, Inc. ..................... 600 28,050
------------
1,570,314
------------
FOOD SERVICES, LODGING (0.9%)
Marriott International, Inc. .... 2,100 75,338
McDonald's Corp. ................. 12,500 489,063
Promus Cos., Inc.* ............... 1,900 74,100
Shoneys, Inc.* ................... 2,900 34,075
Wendys International, Inc. ...... 1,700 30,388
------------
702,964
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.5%)
Black & Decker Corp. ............. 1,400 43,225
Maytag Corp. ..................... 1,700 27,200
Newell Co. ....................... 2,800 68,600
Premark International, Inc. ..... 1,100 57,063
Rubbermaid, Inc. ................. 3,000 83,250
Stanley Works .................... 800 30,300
Whirlpool Corp. .................. 1,400 77,000
Zenith Electronics Corp.* ........ 2,600 19,175
------------
405,813
------------
LEISURE RELATED (1.2%)
American Greetings Corp. ......... 1,300 38,188
Brunswick Corp. .................. 1,500 25,500
CUC International, Inc.* ......... 2,200 92,400
Disney (Walt) Co. ................ 9,400 522,875
Fleetwood Enterprises, Inc. ..... 1,200 23,700
Hasbro, Inc. ..................... 1,500 47,625
Hilton Hotels Corp. .............. 900 63,225
Mattel, Inc. ..................... 3,875 100,750
------------
914,263
------------
PHOTO & OPTICAL (0.6%)
Allergan, Inc. ................... 1,200 32,550
Bausch & Lomb, Inc. .............. 1,100 45,650
</TABLE>
B-20
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Eastman Kodak Co. ................ 6,100 $ 369,813
Polaroid Corp. ................... 800 32,600
------------
480,613
------------
RETAIL--GENERAL (4.5%)
Charming Shoppes, Inc. ........... 3,600 18,900
Circuit City Stores, Inc. ........ 1,700 53,763
Dayton Hudson Corp. .............. 1,300 93,275
Dillard Department Stores ........ 2,000 58,750
Gap, Inc. ........................ 2,600 90,675
Home Depot, Inc. ................. 8,200 333,125
K-Mart Corp. ..................... 8,200 119,925
Limited, Inc. .................... 6,400 140,800
Lowes Cos., Inc. ................. 3,000 89,625
May Department Stores Co. ........ 4,500 187,313
Melville Corp. ................... 1,900 65,075
Mercantile Stores, Inc. .......... 700 32,550
Nordstrom, Inc. .................. 1,500 62,063
Penney (J.C.), Inc. .............. 4,200 201,600
Pep Boys Manny Moe & Jack ........ 1,100 29,425
Price/Costco, Inc.* .............. 3,600 58,500
Rite Aid Corp. ................... 1,600 41,000
Sears Roebuck & Co. .............. 7,000 419,125
Tandy Corp. ...................... 1,300 67,438
TJX Cos., Inc. ................... 2,200 29,150
Toys R Us, Inc.* ................. 5,000 146,250
Wal-Mart Stores, Inc. ............ 41,300 1,104,775
Walgreen Co. ..................... 2,200 110,275
Woolworth Corp. .................. 2,500 37,813
------------
3,591,190
------------
TOTAL CONSUMER CYCLICALS (11.0%) 8,667,859
------------
CONSUMER NONCYCLICALS
BEVERAGES (3.4%)
Anheuser Busch, Inc. ............. 4,700 267,313
Brown Forman Corp. (Class B) .... 1,300 43,388
Coca-Cola Co. .................... 22,700 1,447,125
Harcourt General, Inc. ........... 1,300 55,250
Pepsico, Inc. .................... 14,100 643,313
Seagram Ltd. ..................... 7,100 245,838
------------
2,702,227
------------
CONTAINERS (0.1%)
Ball Corp. ....................... 800 27,900
Bemis, Inc. ...................... 200 5,200
Crown Cork & Seal, Inc.* ......... 1,500 75,188
------------
108,288
------------
DRUGS (5.0%)
ALZA Corp. (Class A)* ............ 1,400 32,725
American Home Products Corp. .... 5,500 425,563
Amgen, Inc.* ..................... 2,400 193,050
Bristol-Myers Squibb Co. ......... 9,100 619,938
Lilly (Eli) & Co. ................ 5,300 416,050
Merck & Co., Inc. ................ 22,200 1,087,800
Pfizer, Inc. ..................... 5,700 526,538
Schering Plough Corp. ............ 6,700 295,638
Upjohn Co. ....................... 3,200 121,200
Warner-Lambert Co. ............... 2,400 207,300
------------
3,925,802
------------
FOODS (2.7%)
Archer Daniels Midland Co. ...... 9,225 $ 171,816
CPC International, Inc. .......... 2,700 166,725
Campbell Soup Co. ................ 4,500 220,500
ConAgra, Inc. .................... 4,400 153,450
Darden Restaurants, Inc.* ........ 4,200 45,675
General Mills, Inc. .............. 2,900 148,988
Heinz (H.J.) Co. ................. 4,400 195,250
Hershey Foods Corp. .............. 1,600 88,400
Kellogg Co. ...................... 3,900 278,363
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Pioneer Hi Bred
International, Inc. ............. 1,600 67,200
Quaker Oats Co. .................. 2,500 82,188
Ralston Purina Group ............. 1,800 91,800
Sara Lee Corp. ................... 8,600 245,100
Whitman Corp. .................... 2,000 38,750
Wrigley (Wm.), Jr. Co. ........... 2,100 97,388
------------
2,091,593
------------
HOSPITAL SUPPLIES & SERVICES (3.5%)
Abbott Laboratories, Inc. ........ 14,300 579,150
Bard (C.R.), Inc. ................ 1,000 30,000
Baxter International, Inc. ...... 5,000 181,875
Becton Dickinson & Co. ........... 1,200 69,900
Beverly Enterprises, Inc.* ...... 2,400 29,700
Biomet, Inc.* .................... 2,000 31,000
Boston Scientific Corp.* ......... 2,800 89,250
Columbia HCA Healthcare Corp. ... 8,000 346,000
Johnson and Johnson .............. 11,600 784,445
Mallinckrodt Group, Inc. ......... 1,400 49,700
Manor Care, Inc. ................. 1,100 32,038
Medtronic, Inc. .................. 2,100 161,963
Saint Jude Medical, Inc. ......... 900 45,113
Tenet Healthcare Corporation * .. 3,700 53,188
United Healthcare Corp. .......... 3,200 132,400
U.S. Healthcare, Inc. ............ 2,900 88,813
U.S. Surgical Corp. .............. 1,400 29,225
------------
2,733,760
------------
RETAIL--FOOD (0.7%)
Albertsons, Inc. ................. 4,600 136,850
American Stores Co. .............. 2,700 75,938
Fleming Cos., Inc. ............... 1,100 29,150
Giant Food, Inc. (Class A) ...... 1,000 28,375
Great Atlantic & Pacific
Tea, Inc. ....................... 1,200 31,650
Kroger Co.* ...................... 2,100 56,438
Supervalu, Inc. .................. 1,200 34,950
Sysco Corp. ...................... 3,200 94,400
Winn Dixie Stores, Inc. .......... 1,400 80,850
------------
568,601
------------
SOAPS & TOILETRIES (2.6%)
Alberto Culver Co. ............... 900 27,225
Avon Products, Inc. .............. 1,300 87,100
Clorox Co. ....................... 900 58,725
Colgate Palmolive Co. ............ 2,500 182,813
Gillette Corp. ................... 8,200 365,925
</TABLE>
B-21
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
International Flavors &
Fragrances, Inc. ................ 2,000 $ 99,500
Procter & Gamble Co. ............. 12,300 884,063
Unilever N.V. .................... 2,900 377,363
------------
2,082,714
------------
TOBACCO (2.0%)
American Brands, Inc. ............ 3,300 131,175
Loews Corp. ...................... 1,100 133,100
Philip Morris Cos., Inc. ......... 15,400 1,145,375
UST, Inc. ........................ 3,500 104,125
------------
1,513,775
------------
TOTAL CONSUMER NONCYCLICALS (20.0%) 15,726,760
------------
CREDIT SENSITIVE
BANKS (5.3%)
Ahmanson (H.F.) & Co. ............ 2,000 44,000
Banc One Corp. ................... 7,100 228,975
Bank of Boston Corp. ............. 2,000 75,000
Bank of New York Co. ............. 3,400 137,275
BankAmerica Corp. ................ 6,700 352,588
Bankers Trust New York Corp. .... 1,400 86,800
Barnett Banks, Inc. .............. 1,800 92,250
Boatmen's Bancshares, Inc. ...... 2,300 81,075
Chase Manhattan Corp. ............ 3,200 150,400
Chemical Banking Corp. ........... 4,300 203,175
Citicorp ......................... 7,200 416,700
CoreStates Financial Corp. ...... 2,600 90,675
First Chicago Corp. .............. 1,600 95,800
First Fidelity BankCorp. ......... 1,500 88,500
First Interstate Bancorp. ........ 1,400 112,350
First Union Corp. ................ 3,100 140,275
Golden West Financial Corp. ..... 1,000 47,125
Great Western Financial Corp. ... 2,500 51,563
KeyCorp. ......................... 4,300 134,913
Mellon Bank Corp. ................ 2,700 112,388
Morgan (J.P.) & Co., Inc. ........ 3,400 238,425
NBD Bancorp., Inc. ............... 2,900 92,800
National City Corp. .............. 2,700 79,313
Nationsbank Corp. ................ 4,900 262,763
Norwest Corp. .................... 5,800 166,750
PNC Financial Corp. .............. 4,200 110,775
Shawmut National Corp. ........... 2,300 73,313
Suntrust Banks, Inc. ............. 2,100 122,325
U.S. Bancorp. .................... 1,800 43,313
Wachovia Corp. ................... 3,100 110,825
Wells Fargo & Co. ................ 900 162,225
------------
4,204,654
------------
FINANCIAL SERVICES (1.4%)
American Express Co. ............. 8,900 312,613
Beneficial Corp. ................. 1,000 44,000
Dean Witter Discover & Co. ...... 3,200 150,400
Fleet Financial Group, Inc. ..... 2,600 96,525
Household International, Inc. ... 1,700 84,150
MBNA Corp. ....................... 2,600 87,750
Merrill Lynch & Co., Inc. ........ 3,300 173,250
Salomon, Inc. .................... 2,000 80,250
Transamerica Corp. ............... 1,300 75,725
------------
1,104,663
------------
INSURANCE (2.8%)
Aetna Life & Casualty Co. ........ 2,000 $ 125,750
Alexander & Alexander
Services, Inc. .................. 1,200 28,650
American General Corp. ........... 3,800 128,250
American International
Group, Inc. ..................... 5,700 649,800
CIGNA Corp. ...................... 1,300 100,913
Chubb Corp. ...................... 1,600 128,200
General Re Corp. ................. 1,500 200,813
Jefferson Pilot Corp. ............ 900 49,275
Lincoln National Corp. Industries 1,700 74,375
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Marsh & McLennan Cos., Inc. ..... 1,300 105,463
Providian Corp. .................. 1,700 61,625
Safeco Corp. ..................... 1,200 68,925
Saint Paul Cos., Inc. ............ 1,500 73,875
Torchmark Corp. .................. 1,300 49,075
Travelers, Inc. .................. 5,800 253,750
UNUM Corp. ....................... 1,300 60,938
USF&G Corp. ...................... 1,800 29,250
------------
2,188,927
------------
MORTGAGE RELATED (0.9%)
Federal Home Loan Mortgage Corp. 3,300 226,875
Federal National Mortgage
Association ..................... 4,900 462,438
------------
689,313
------------
UTILITY--ELECTRIC (3.5%)
American Electric Power, Inc. ... 3,300 115,913
Baltimore Gas & Electric Co. .... 2,700 67,500
Carolina Power & Light Co. ...... 2,900 87,725
Central & South West Corp. ...... 3,400 89,250
Cinergy Corp. .................... 2,813 73,841
Consolidated Edison Co.
N.Y., Inc. ...................... 4,200 123,900
Detroit Edison Co. ............... 2,700 79,650
Dominion Resources, Inc. ......... 3,100 113,150
Duke Power Co. ................... 3,700 153,550
Entergy Corp. .................... 4,100 98,913
FPL Group, Inc. .................. 3,300 127,463
General Public Utilities Corp. .. 2,100 62,475
Houston Industries, Inc. ......... 2,400 101,100
Niagara Mohawk Power Co. ......... 2,600 38,350
Northern States Power Co. ........ 1,200 55,350
Ohio Edison Co. .................. 2,700 61,088
Peco Energy Co. .................. 4,100 113,263
Pacific Gas & Electric Co. ...... 7,700 223,300
Pacificorp. ...................... 5,100 95,625
Public Service Enterprise Group . 4,400 122,100
SCE Corp. ........................ 8,000 137,000
Southern Co. ..................... 12,000 268,500
Texas Utilities Co. .............. 4,100 140,938
Unicom Corporation ............... 3,900 103,838
Union Electric Co. ............... 1,900 70,775
------------
2,724,557
------------
</TABLE>
B-22
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
UTILITY--GAS (0.4%)
Columbia Gas System, Inc.* ...... 900 $ 28,575
Consolidated Natural Gas Co. .... 1,700 64,175
ENRON Corp. ...................... 4,500 158,063
Nicor, Inc. ...................... 1,100 29,563
Peoples Energy Corp. ............. 1,100 28,463
------------
308,839
------------
UTILITY--TELEPHONE (6.7%)
Alltel Corp. ..................... 3,400 86,275
Ameritech Corp. .................. 10,000 440,000
AT&T Corp. ....................... 28,500 1,514,000
Bell Atlantic Corp. .............. 7,900 442,400
BellSouth Corp. .................. 8,900 565,150
GTE Corp. ........................ 17,500 597,188
NYNEX Corp. ...................... 7,700 309,925
Pacific Telesis Group ............ 7,900 211,325
SBC Communications, Inc. ......... 10,900 519,113
Sprint Corp. ..................... 6,500 218,563
U.S. West, Inc. .................. 8,700 362,138
------------
5,266,077
------------
TOTAL CREDIT SENSITIVE (21.0%) . 16,487,030
------------
ENERGY
COAL & GAS PIPELINES (0.8%)
Burlington Resources, Inc. ...... 2,400 88,500
Coastal Corp. .................... 1,900 57,713
Enserch Corp. .................... 1,500 25,688
Pacific Enterprises, Ltd. ........ 1,500 36,750
Panhandle Eastern Corp. .......... 2,800 68,250
Pittston Services Group .......... 1,200 28,800
Praxair, Inc. .................... 2,600 65,000
Sonat, Inc. ...................... 1,600 48,800
Tenneco, Inc. .................... 3,400 156,400
Williams Cos., Inc. .............. 1,900 66,263
------------
642,164
------------
OIL--DOMESTIC (2.3%)
Amerada Hess Corp. ............... 1,700 83,088
Amoco Corp. ...................... 8,900 592,963
Ashland, Inc. .................... 1,000 35,125
Atlantic Richfield Co. ........... 3,000 329,250
Kerr McGee Corp. ................. 900 48,263
Louisiana Land & Exploration
Corp. ........................... 700 27,913
Occidental Petroleum Corp. ...... 5,900 134,963
Oryx Energy Co.* ................. 2,000 27,500
Pennzoil Co. ..................... 800 37,700
Phillips Petroleum Co. ........... 4,900 163,538
Santa Fe Energy Resources, Inc.* 2,800 26,600
Sun, Inc. ........................ 1,900 52,013
USX-Marathon Group ............... 5,300 104,675
Unocal Corp. ..................... 4,600 127,075
------------
1,790,666
------------
OIL--INTERNATIONAL (5.5%)
Chevron Corp. .................... 11,700 545,513
Exxon Corp. ...................... 22,300 1,574,938
Mobil Corp. ...................... 7,100 681,600
Royal Dutch Petroleum Co. (ADR) . 9,600 1,170,000
Texaco, Inc. ..................... 4,800 $ 315,000
------------
4,287,051
------------
OIL--SUPPLIES & CONSTRUCTION (0.7%)
Baker Hughes, Inc. ............... 2,600 53,300
Dresser Industries, Inc. ......... 3,400 75,650
Halliburton Co. .................. 2,100 75,075
Helmerich & Payne, Inc . ......... 1,000 29,500
McDermott International, Inc. ... 1,100 26,538
Schlumberger, Ltd. ............... 4,300 267,138
Western Atlas, Inc.* ............. 900 39,938
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
------------
567,139
------------
RAILROADS (0.9%)
Burlington Northern, Inc. ........ 1,500 95,063
CSX Corp. ........................ 2,000 150,250
Conrail, Inc. .................... 1,400 77,875
Norfolk Southern Corp. ........... 2,300 154,963
Santa Fe Pacific Corp. ........... 2,871 73,211
Union Pacific Corp. .............. 3,800 210,425
------------
761,787
------------
TOTAL ENERGY (10.2%) ............ 8,048,807
------------
TECHNOLOGY
ELECTRONICS (3.8%)
Advanced Micro Devices, Inc. .... 1,900 69,113
AMP, Inc. ........................ 4,200 177,450
Applied Materials, Inc.* ......... 1,600 138,600
Cisco Systems, Inc.* ............. 4,800 242,700
EG&G, Inc. ....................... 1,800 30,150
Harris Corp. ..................... 700 36,138
Intel Corp. ...................... 14,900 943,356
Micron Technology, Inc. .......... 3,800 208,525
Motorola, Inc. ................... 10,600 711,525
National Semiconductor Corp.* ... 2,200 61,050
Perkin Elmer Corp. ............... 800 28,400
Texas Instruments, Inc. .......... 1,700 227,588
Tyco International, Ltd. ......... 1,400 75,600
------------
2,950,195
------------
OFFICE EQUIPMENT (3.5%)
Amdahl Corp.* .................... 2,300 25,588
Apple Computer, Inc. ............. 2,200 102,163
Ceridian Corp.* .................. 900 33,188
Compaq Computer Corp.* ........... 4,700 213,263
Cray Research, Inc.* ............. 1,100 26,813
Digital Equipment Corp.* ......... 2,700 110,025
Hewlett-Packard Co. .............. 9,200 685,400
Honeywell, Inc. .................. 2,400 103,500
International Business Machines
Corp. ........................... 10,400 998,400
Pitney Bowes, Inc. ............... 2,700 103,613
Sun Microsystems, Inc.* .......... 1,700 82,450
Tandem Computers, Inc.* .......... 1,900 30,638
Unisys Corp.* .................... 3,200 34,800
Xerox Corp. ...................... 1,900 222,775
------------
2,772,616
------------
OFFICE EQUIPMENT SERVICES (2.7%)
Autodesk, Inc. ................... 800 34,400
Automatic Data Processing, Inc. . 2,700 169,763
</TABLE>
B-23
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Computer Associates
International, Inc. ............. 2,900 $ 196,475
Computer Sciences Corp.* ......... 1,000 56,875
First Data Corp. ................. 2,200 125,125
Lotus Development Corp.* ......... 1,000 63,750
Microsoft Corp.* ................. 10,400 939,900
Novell, Inc.* .................... 6,800 135,575
Oracle Corp. * ................... 7,750 299,344
Silicon Graphics, Inc.* .......... 2,800 111,650
------------
2,132,857
------------
TELECOMMUNICATIONS (1.3%)
AirTouch Communications, Inc.* .. 8,900 253,650
Andrew Corp.* .................... 650 37,619
Cabletron Systems, Inc.* ......... 1,300 69,225
Cox Communications, Inc.
(Class A)* ...................... 95 1,841
DSC Communications Corp.* ........ 2,100 97,650
MCI Communications Corp. ......... 12,100 266,200
Northern Telecommunications Ltd. 4,700 171,550
Scientific Atlanta, Inc. ......... 1,400 30,800
Tellabs, Inc.* ................... 1,800 86,625
------------
1,015,160
------------
TOTAL TECHNOLOGY (11.3%) ........ 8,870,828
------------
DIVERSIFIED
MISCELLANEOUS (1.6%)
Alco Standard Corp. .............. 1,000 $ 79,875
Allied Signal, Inc. .............. 5,100 226,950
Corning, Inc. .................... 4,200 137,550
Dial Corp. ....................... 1,600 39,600
ITT Corp. ........................ 2,000 235,000
Minnesota Mining & Manufacturing
Co. ............................. 7,500 429,375
Ogden Corp. ...................... 1,300 28,438
Teledyne, Inc. ................... 1,100 26,950
Textron, Inc. .................... 1,500 87,188
------------
TOTAL DIVERSIFIED (1.6%) ........ 1,290,926
------------
TOTAL COMMON STOCKS (91.9%)
(Cost $64,745,234) .............. 72,325,433
------------
PRINCIPAL
AMOUNT
------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (6.5%)
ESC Securitization, Inc.
6.7%, due 07/03/95 .............. $5,100,000 5,098,102
------------
TOTAL SHORT-TERM DEBT SECURITIES (6.5%)
(Amortized Cost $5,098,102) .... 5,098,102
------------
TOTAL INVESTMENTS (98.4%)
(Cost/Amortized Cost $69,843,336) 77,423,535
CASH AND RECEIVABLES
LESS LIABILITIES (1.6%) ......... 1,224,486
------------
NET ASSETS (100.0%) .............. $78,648,021
============
</TABLE>
Financial Futures Contracts outstanding at June 30, 1995:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE 6/30/95 DEPRECIATION
- ---------------------- ------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
LONG S & P 500 INDEX* 9/95 23 $6,323,050 $6,292,225 $(30,825)
</TABLE>
* Non-income producing.
See Notes to Financial Statements.
B-24
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.8%)
Dupont (E.I.) de Nemours & Co. . 250,000 $ 17,187,500
Lubrizol Corp. .................. 423,300 14,974,238
Monsanto Co. .................... 487,000 43,890,875
Union Carbide Corp. ............. 55,000 1,835,625
------------
77,888,238
------------
CHEMICALS--SPECIALTY (1.2%)
Great Lakes Chemical Corp. ..... 853,800 51,441,450
------------
METALS & MINING (0.8%)
Aluminum Co. of America ......... 10,000 501,250
Newmont Mining Corp. ............ 785,572 32,895,827
------------
33,397,077
------------
PAPER (0.1%)
Bowater, Inc. ................... 100,000 4,487,500
------------
TOTAL BASIC MATERIALS (3.9%) .. 167,214,265
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (10.0%)
Chris Craft Industries, Inc.
(Class B)*++ ................... 1,223,734 42,830,690
Comcast Corp. (Class A) SPL .... 411,800 7,644,037
Donnelley (R.R.) & Sons Co. .... 2,099,200 75,571,200
Grupo Televisa S.A. (GDR) (a) .. 806,100 16,424,287
Tele-Communications, Inc.
(Class A)* (a) ................. 4,857,236 113,841,469
Time Warner, Inc. ............... 438,600 18,037,425
Viacom, Inc. (Class B)* (a) .... 3,258,439 151,110,109
------------
TOTAL BUSINESS SERVICES (10.0%) 425,459,217
------------
CAPITAL GOODS
AEROSPACE (0.6%)
General Motors Corp. (Class H) . 610,600 24,118,700
------------
TOTAL CAPITAL GOODS (0.6%) .... 24,118,700
------------
CONSUMER CYCLICALS
AIRLINES (0.6%)
Delta Air Lines, Inc. ........... 350,000 25,812,500
------------
APPAREL, TEXTILE (0.4%)
Stride Rite Corp. ............... 1,488,300 15,441,113
------------
AUTOS & TRUCKS (3.8%)
Chrysler Corp. .................. 2,031,600 97,262,850
General Motors Corp. ............ 1,369,700 64,204,685
------------
161,467,535
------------
FOOD SERVICES, LODGING (0.2%)
McDonald's Corp. ................ 200,000 7,825,000
------------
LEISURE RELATED (0.0%)
Carnival Corp. (Class A) ........ 50,000 1,168,750
------------
PHOTO & OPTICAL (3.0%)
Eastman Kodak Co. ............... 2,110,700 127,961,188
------------
RETAIL--GENERAL (5.2%)
Home Depot, Inc. ................ 550,000 22,343,750
Sears Roebuck & Co. ............. 3,325,500 199,114,313
------------
221,458,063
------------
TOTAL CONSUMER CYCLICALS (13.2%) 561,134,149
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
CONSUMER NONCYCLICALS
DRUGS (2.8%)
Astra AB, (Series A) ............ 1,350,000 $ 41,737,836
Lilly (Eli) & Co. ............... 100,000 7,850,000
Merck & Co., Inc. ............... 865,000 42,385,000
Pfizer, Inc. .................... 300,000 27,712,500
------------
119,685,336
------------
HOSPITAL SUPPLIES & SERVICES (4.1%)
Abbott Laboratories, Inc. ...... 1,145,000 46,372,500
Columbia HCA
Healthcare Corp. ............... 590,320 25,531,340
Guidant Corp.* .................. 84,500 2,028,000
Maxxim Medical, Inc.* ........... 172,667 2,590,005
United Healthcare Corp. (a) .... 1,338,500 55,380,438
U.S. Healthcare, Inc. (a) ...... 1,412,150 43,247,094
------------
175,149,377
------------
RETAIL--FOOD (0.5%)
Kroger Co.* ..................... 759,300 20,406,188
------------
SOAPS & TOILETRIES (0.2%)
Colgate Palmolive Co. ........... 100,000 7,312,500
------------
TOBACCO (5.5%)
Loews Corp. ..................... 1,037,750 125,567,750
Philip Morris Cos., Inc. ........ 1,437,700 106,928,938
------------
232,496,688
------------
TOTAL CONSUMER NONCYCLICALS (13.1%) 555,050,089
------------
CREDIT SENSITIVE
BANKS (1.7%)
Grupo Financiero Banamex (Class
C) ............................. 392,000 583,296
Nationsbank Corp. ............... 402,000 21,557,250
Shawmut National Corp. .......... 1,533,500 48,880,313
------------
71,020,859
------------
FINANCIAL SERVICES (2.6%)
American Express Co. ............ 1,475,000 51,809,375
Dean Witter Discover & Co. ..... 372,983 17,530,201
First USA, Inc. ................. 216,900 9,624,938
MBNA Corp. ...................... 136,900 4,620,375
Merrill Lynch & Co., Inc. ...... 100,000 5,250,000
Student Loan Marketing
Association .................... 491,000 23,015,625
------------
111,850,514
------------
INSURANCE (10.3%)
American International
Group, Inc. .................... 1,726,700 196,843,800
Berkley (W.R.) Corp. ............ 543,143 19,281,577
General Reinsurance Corp. ...... 33,800 4,524,975
Progressive Corp. ............... 871,800 33,455,325
TIG Holdings, Inc. .............. 1,548,400 35,613,200
Travelers, Inc. ................. 3,385,466 148,114,138
------------
437,833,015
------------
MORTGAGE RELATED (0.7%)
Federal National Mortgage
Association .................... 313,000 29,539,375
------------
</TABLE>
B-25
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
REAL ESTATE (4.3%)
AMLI Residential Property Trust 188,500 $ 3,581,500
Associated Estates Realty Corp. 149,600 3,160,300
Avalon Properties, Inc. ......... 163,900 3,257,513
CBL & Associates Properties++ .. 1,056,700 21,001,913
Columbus Realty Trust ........... 360,000 6,750,000
DeBartolo Realty Corp. .......... 465,000 6,800,625
Essex Property Trust, Inc.++ ... 365,000 6,615,625
First Industrial Realty Trust .. 254,500 5,217,250
Gables Residential Trust ........ 314,000 6,437,000
JDN Realty Corporation .......... 171,600 3,496,350
Macerich Co. .................... 395,600 7,763,650
Manufactured Home Communities .. 378,000 5,811,750
Paragon Group, Inc. ............. 237,800 4,429,025
Regency Realty Corp.++ .......... 768,700 13,067,900
Shurgard Storage Centers, Inc. . 169,000 3,887,000
Simon Property Group, Inc. ..... 1,493,000 37,511,625
Spieker Properties, Inc. ........ 1,317,200 29,472,350
Summit Properties ............... 450,500 7,771,125
Walden Residential
Properties, Inc. ............... 255,000 4,685,625
------------
180,718,126
------------
UTILITY--GAS (0.1%)
ENRON Corp. ..................... 120,000 4,215,000
------------
UTILITY--TELEPHONE (0.7%)
BellSouth Corp. ................. 5,412 343,662
Sprint Corp. .................... 358,000 12,037,750
Telefonos de Mexico, L (a) ..... 700,000 21,087,500
------------
33,468,912
------------
TOTAL CREDIT SENSITIVE (20.4%) 868,645,801
------------
ENERGY
OIL--DOMESTIC (0.4%)
Apache Corp. .................... 219,000 5,995,125
Enron Oil and Gas Co. ........... 267,800 5,824,650
Louisiana Land &
Exploration Corp. .............. 87,800 3,501,025
------------
15,320,800
------------
OIL--INTERNATIONAL (0.8%)
YPF Sociedad Anonima (ADR) ..... 1,781,000 33,616,375
------------
OIL--SUPPLIES & CONSTRUCTION (1.2%)
Baker Hughes, Inc. .............. 268,000 5,494,000
Western Atlas, Inc.* ............ 1,004,300 44,565,812
------------
50,059,812
------------
RAILROADS (1.1%)
Conrail, Inc. ................... 834,000 46,391,250
------------
UTILITY--GAS (0.2%)
Renaissance Energy Ltd.* ........ 475,000 9,814,050
------------
TOTAL ENERGY (3.7%) ............ 155,202,287
------------
TECHNOLOGY
ELECTRONICS (18.3%)
Applied Materials, Inc.* ........ 174,500 15,116,062
Cisco Systems, Inc.* (a) ........ 3,288,000 166,249,500
EMC Corp.* ...................... 3,937,900 95,494,075
General Instrument Corp.* (a) .. 2,997,600 115,032,900
Intel Corp. (a) ................. 2,711,800 $171,690,837
Micron Technology, Inc. ......... 574,200 31,509,225
Motorola, Inc. .................. 2,423,600 162,684,150
National Semiconductor Corp.* .. 200,000 5,550,000
Texas Instruments, Inc. ......... 100,000 13,387,500
------------
776,714,249
------------
OFFICE EQUIPMENT SERVICES (1.1%)
General Motors Corp. (Class E) . 700,000 30,450,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Silicon Graphics, Inc.* ......... 410,000 16,348,750
------------
46,798,750
------------
TELECOMMUNICATIONS (9.8%)
AirTouch Communications, Inc.* . 3,349,600 95,463,600
Cox Communications, Inc.
(Class A)* ..................... 130,400 2,526,500
DSC Communications Corp.* (a) .. 1,700,000 79,050,000
MCI Communications Corp. ........ 1,386,000 30,492,000
Mannesmann AG (ADR) ............. 639,700 194,468,800
Rogers Cantel Mobile
Commmunications, Inc.
(Class B)(ADR)* ................ 275,000 6,531,250
Vodafone Group PLC (ADR) ........ 250,000 9,468,750
------------
418,000,900
------------
TOTAL TECHNOLOGY (29.2%) ...... 1,241,513,899
------------
DIVERSIFIED
MISCELLANEOUS (1.6%)
Hanson PLC (ADR)--Warrants
(Class B)* ..................... 51,320,675 9,622,626
ITT Corp. ....................... 180,000 21,150,000
Itel Corp.* ..................... 948,317 36,984,362
------------
TOTAL DIVERSIFIED (1.6%) ...... 67,756,988
------------
TOTAL COMMON STOCKS (95.7%)
(Cost $3,331,764,628) .......... 4,066,095,395
------------
PREFERRED STOCKS:
CONSUMER CYCLICALS (0.6%)
AUTOS & TRUCKS
Chrysler Corp.
$4.625 Conv. Series A+ ......... 215,700 28,661,138
------------
TOTAL PREFERRED STOCKS (0.6%)
(Cost $27,174,241) ............. 28,661,138
------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.0%)
PAPER
Stone Container Corp.
8.875% Conv. Sub. Deb.,
07/15/00 ....................... $ 1,450,000 2,900,000
------------
TECHNOLOGY (1.1%)
ELECTRONICS
General Instrument Corp.
5.0% Conv., 06/15/00 ........... 27,130,000 44,832,325
------------
TOTAL LONG-TERM DEBT SECURITIES (1.1%)
(Amortized Cost $38,054,309) .. 47,732,325
------------
</TABLE>
B-26
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------ ------------ ------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Mitsubishi Bank Ltd.--N.Y.:
5.98%, due 07/26/95 .......... $ 7,200,000 $ 7,170,100
5.84%, due 09/25/95 .......... 6,450,000 6,357,550
Union Bancorp Los Angeles:
5.95%, due 07/05/95 .......... 3,000,000 2,998,017
5.93%, due 07/28/95 .......... 5,100,000 5,077,318
------------
TOTAL BANKERS' ACCEPTANCES (0.5%) 21,602,985
------------
CERTIFICATES OF DEPOSIT (0.1%)
Mitsubishi Bank Ltd.--N.Y.
6.0%, due 07/17/95 ........... 5,000,000 5,000,000
------------
COMMERCIAL PAPER
Abbey National North America Corp.
6.0%, due 07/14/95 ........... 10,000,000 9,978,333
Akzo America, Inc.
5.94%, due 08/14/95 .......... 7,747,000 7,690,757
Berliner Handels Und Frank:
5.98%, due 07/05/95 .......... 7,500,000 7,495,017
5.98%, due 07/06/95 .......... 7,500,000 7,493,771
Beta Finance, Inc.:
5.98%, due 07/17/95 .......... 8,000,000 7,978,738
5.82%, due 09/08/95 .......... 5,000,000 4,944,417
Copley Financing Corp:
6.0%, due 07/13/95 ........... 6,902,000 6,888,196
6.0%, due 07/27/95 ........... 14,442,000 14,379,418
6.0%, due 07/28/95 ........... 9,000,000 8,959,500
CS First Boston, Inc.:
5.97%, due 07/19/95 .......... 10,000,000 9,970,150
6.0%, due 07/27/95 ........... 7,000,000 6,969,667
Deutsche Bank Financial, Inc.
5.96%, due 07/06/95 .......... 7,500,000 7,493,792
Dynamic Funding Corp.
6.03%, due 07/11/95 .......... 6,000,000 5,989,950
General Electric Capital Corp.
5.94%, due 07/13/95 .......... 5,000,000 4,990,100
ODC Capital Corp.
5.97%, due 07/18/95 .......... 15,000,000 14,957,713
Province of Ontario
5.91%, due 08/21/95 .......... 5,000,000 4,958,137
Province of Quebec
5.95%, due 07/12/95 .......... 15,000,000 14,972,728
Progress Receivables Funding
6.10%, due 07/05/95 .......... 14,000,000 13,990,511
Sheffield Receivables Corp.
6.10%, due 07/12/95 .......... 10,000,000 9,981,361
Three River Funding
5.97%, due 07/13/95 .......... 3,000,000 2,994,030
Working Capital Management Corp.:
6.02%, due 07/05/95 .......... 1,900,000 1,898,729
6.0%, due 07/17/95 ........... 4,794,000 4,781,215
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
- --------------------------------- ------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
TOTAL COMMERCIAL PAPER (4.3%) $ 179,756,230
---------------
TOTAL SHORT-TERM DEBT SECURITIES (4.9%)
(Amortized Cost $206,361,489) .. 206,359,215
---------------
TOTAL INVESTMENTS (102.3%)
(Cost/Amortized Cost $3,603,354,667) 4,348,848,073
---------------
OPTIONS WRITTEN**:
Cisco Systems, Inc.:
July 39 Call* ................... 2,000 (2,350,000)
July 39.50 Call* ................ 2,000 (2,250,000)
August 43.75 Call* .............. 2,500 (1,927,500)
August 46.125 Call* ............. 2,500 (1,400,000)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
- --------------------------------- ------------- ---------------
<S> <C> <C>
DCS Commmunications Corp.:
July 34.125 Call* ............... 2,000 (2,488,000)
August 37.625 Call* ............. 3,000 (2,850,000)
August 39.875 Call* ............. 1,000 (750,000)
August 41.50 Call* .............. 3,000 (1,869,000)
General Instrument Corp.
July 35.125 Call* ............... 2,000 (725,000)
August 31.25 Call* .............. 1,000 (752,000)
August 31.875 Call* ............. 1,000 (695,000)
August 32.50 Call* .............. 2,000 (1,272,000)
Grupo Televisa S.A. (GDR)
September 20.15 Call* ........... 7,000 (1,351,000)
Intel Corp.:
July 47.1875 Call* .............. 4,000 (6,500,000)
August 56.5715 Call* ............ 5,000 (4,035,000)
August 57.625 Call* ............. 1,000 (715,000)
September 62.875 Call* .......... 2,000 (1,006,000)
Tele-Communications, Inc.
(Class A):
September 23.125 Call* .......... 1,000 (183,000)
September 23.1875 Call* ......... 2,000 (370,000)
Telefonos de Mexico, L
September 29.50 Call* ........... 7,000 (1,600,060)
United Healthcare Corp.:
July 44.50 Call* ................ 1,500 (3,000)
July 44.875 Call* ............... 2,000 (12,000)
U.S. Healthcare, Inc.:
July 30 Call* ................... 1,000 (187,500)
July 41 Call* ................... 2,000 (2,000)
Viacom, Inc. (Class B):
September 45.0125 Call* ......... 3,500 (1,330,000)
September 45.50 Call* ........... 4,000 (1,480,000)
---------------
TOTAL OPTIONS WRITTEN (- 0.9%)
(Premiums Received $19,239,554) (38,103,060)
---------------
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (- 1.4%) ............ (60,908,781)
---------------
NET ASSETS (100.0%) .............. $4,249,836,232
===============
<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.
B-27
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (3.1%)
Akzo Nobel N.V. .................. 15,000 $ 1,793,496
Bayer AG ......................... 6,000 1,491,268
Dainippon Ink & Chemical, Inc. .. 198,000 848,021
Denki Kagaku Kogyo K.K.* ......... 102,000 339,378
Dupont (E.I.) de Nemours & Co. .. 20,000 1,375,000
Indo Gulf Fertilisers (GDR) ..... 150,000 307,500
Ishihara Sangyo Ltd.* ............ 10,000 29,733
Mitsui Petrochemical Industries . 170,000 1,287,712
Monsanto Co. ..................... 20,300 1,829,538
Nippon Sanso Corp.* .............. 150,000 676,066
Riken Vinyl Industries Co. Ltd. . 12,000 100,525
Sanyo Chemicals .................. 57,000 517,846
Sekisui Chemical Co. Ltd. ........ 200,000 2,359,743
Shin-Etsu Chemical Ltd. .......... 35,000 615,303
Showa Denko K.K.* ................ 208,000 613,533
Solvay Et Cie Societe Anonyme ... 1,570 869,408
Tessenderlo Chemie ............... 4,800 1,818,452
------------
16,872,522
------------
CHEMICALS--SPECIALTY (1.3%)
Great Lakes Chemical Corp. ...... 34,100 2,054,525
SGL Carbon AG*+ .................. 110,000 4,915,934
------------
6,970,459
------------
METALS & MINING (0.3%)
Biron Corp. ...................... 40,000 12,509
Hoganas AB, Series B+ ............ 25,000 488,887
Johnson Matthey PLC .............. 50,000 456,631
Westralian Sands Ltd. ............ 280,000 646,783
------------
1,604,810
------------
PAPER (1.5%)
Asia Pacific Resources
International Holdings Ltd.
(Class A)* ...................... 100,000 912,500
Bowater, Inc. .................... 22,000 987,250
Chuoh Pack Industries Ltd. ...... 5,000 29,438
Enso-Gutzeit, Series R ........... 124,000 1,124,323
Grupo Industrial Durango (ADR)* . 70,000 560,000
Mayr-Melnhof Karton Aktien+ ..... 28,000 1,620,995
Norske Skogindustrier A.S. 'A'
Free ............................ 10,000 350,497
Oji Paper ........................ 306,000 2,942,481
------------
8,527,484
------------
STEEL (1.0%)
Acerinox S.A. .................... 8,000 982,528
British Steel .................... 700,000 1,912,840
Broken Hill Property ............. 31,515 387,956
Hitachi Metals Ltd. .............. 15,000 168,309
Kawasaki Steel Corp.* ............ 150,000 492,006
Nippon Steel Corp. ............... 222,000 722,931
SSAB Svenskt Stal (Class B) ..... 80,000 936,459
------------
5,603,029
------------
TOTAL BASIC MATERIALS (7.2%) ... 39,578,304
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
Kurita Water Industries .......... 5,000 128,606
COMMON STOCKS (Continued):
Petroleum Geo-Services (ADR)* ... 34,200 $ 983,250
Powerscreen International ........ 410,000 2,090,719
Tomra Systems .................... 329,000 1,291,940
------------
4,494,515
------------
PRINTING, PUBLISHING &
BROADCASTING (4.3%)
Comcast Corp. (Class A) SPL ..... 34,600 642,263
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Donnelley (R.R.) & Sons Co. ..... 94,700 3,409,200
Oriental Press Group ............. 1,000,000 403,862
Reed International ............... 35,000 491,714
Sunshine Broadcasting Network ... 90,000 126,656
Tele-Communications, Inc.
(Class A)* ...................... 219,000 5,132,813
Time Warner, Inc. ................ 17,300 711,463
Toppan Printing Co. .............. 94,000 1,231,078
TVI Televisao Independente* ..... 6,000 36,953
United Newspapers PLC ............ 60,000 496,408
Ver Ned Uitgevers ................ 20,000 2,395,202
Viacom, Inc. (Class B)* .......... 144,433 6,698,080
Wolters Kluwer ................... 23,151 2,043,179
------------
23,818,871
------------
PROFESSIONAL SERVICES (0.9%)
Apcoa Parking AG* ................ 21,100 1,121,488
Automated Security Holdings* .... 153,125 119,378
Blenheim Exhibition Group ........ 45,000 183,289
Randstad Holdings N.V. ........... 12,750 902,171
Secom Co. ........................ 16,000 1,006,194
Williams Holdings PLC ............ 190,000 953,755
WPP Group PLC .................... 250,000 481,293
------------
4,767,568
------------
TRUCKING, SHIPPING (0.6%)
Autostrade Conc E Costr-Priv .... 210,000 234,985
Brambles Industries Ltd. ......... 80,000 758,512
Irish Continental Group .......... 145,442 1,072,333
Kawasaki Kisen Kaisko* ........... 120,000 311,486
Western Bulk Shipping+ ........... 94,500 460,028
Yamato Transport ................. 47,700 507,644
------------
3,344,988
------------
TOTAL BUSINESS SERVICES (6.6%) . 36,425,942
------------
CAPITAL GOODS
AEROSPACE (0.3%)
General Motors Corp. (Class H) .. 43,500 1,718,250
------------
BUILDING & CONSTRUCTION (2.5%)
Bam Groep Holdings ............... 1,000 70,048
BBC Brown Boveri ................. 2,400 2,484,412
Bufete Industrial S.A. (ADR) .... 20,000 325,000
C-Cube Corp. ..................... 10,000 67,843
Fomento de Construcciones Y
Contratas S.A. .................. 1,200 102,085
Fukuda Corp. ..................... 60,000 619,432
Kanamoto Co. Ltd. ................ 28,000 429,473
Kaneshita Construction ........... 125,000 1,651,820
Kyosei Rentemu Co. Ltd. .......... 18,000 244,233
Macmahon Holdings Ltd.* .......... 2,000,000 525,955
National House Industrial ........ 70,000 1,296,679
Paul Y.-ITC Construction ......... 1,020,000 226,731
PS Corp. ......................... 87,040 1,571,249
</TABLE>
B-28
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Royal Plastics Group Ltd.*+ ..... 70,000 $ 962,064
Sacos Corp. ...................... 20,200 448,068
Sekisui House--Warrants* ......... 20 880
Sho Bond Construction ............ 21,300 703,675
Sphinx-Gastavsberg* .............. 12,000 429,200
Suido Kiko Kaisha ................ 43,000 380,509
Toda Construction ................ 100,000 877,824
Wesco, Inc. ...................... 23,280 530,121
------------
13,947,301
------------
BUILDING MATERIALS & FOREST PRODUCTS (0.8%)
BPB Industries PLC ............... 200,000 988,042
Fletcher Challenge ............... 120,000 336,949
Lafarge Canada ................... 7,000 135,071
Lafarge Corp. .................... 30,000 2,332,595
Macmillan Bloedel Ltd. ........... 40,000 560,673
Nichiha .......................... 2,000 41,296
------------
4,394,626
------------
ELECTRICAL EQUIPMENT (0.8%)
Alcatel Cable S.A.* .............. 15,000 912,136
Kinden Corp. ..................... 50,000 932,098
Omron Corp. ...................... 90,000 1,720,252
Philips Electronics N.V. ......... 3,000 128,250
Toshiba Corp. .................... 10,000 63,359
Vae Eisenbahnsys ................. 4,183 421,531
------------
4,177,626
------------
MACHINERY (1.9%)
Asahi Diamond Industrial ......... 6,180 75,833
Construcciones Auxiliar Ferro ... 9,425 377,544
Fag Kugelfischer Georg Schaefer* 2,000 272,625
Fanuc Co. ........................ 12,000 518,200
Hitachi Zosen .................... 100,000 70,125
Kalmar Industries AB+ ............ 70,000 1,079,682
Keppel Corp. ..................... 120,000 978,891
Keyence Corp. .................... 25,300 2,835,821
Mitsubishi Heavy Industries Ltd. 40,000 271,842
Namura Shipbuilding .............. 15,000 51,324
Siebe PLC ........................ 150,000 1,493,996
SMC Corp. ........................ 43,600 2,505,245
Yaskawa Electric Corp.* .......... 5,000 19,763
------------
10,550,891
------------
TOTAL CAPITAL GOODS (6.3%) ..... 34,788,694
------------
CONSUMER CYCLICALS
AIRLINES (1.4%)
Air New Zealand Limited 'B'
Shares* ......................... 250,000 727,048
British Airways .................. 300,000 1,966,538
Delta Air Lines, Inc. ............ 18,000 1,327,500
KLM* ............................. 110,000 3,572,143
------------
7,593,229
------------
APPAREL, TEXTILE (0.1%)
Chargeurs SA ..................... 4,000 779,181
Chargeurs SA--Rights * ........... 4,000 0
------------
779,181
------------
AUTO RELATED (1.2%)
Autoliv AB (ADS)*+ ............... 11,850 632,494
Autoliv AB* ...................... 10,000 $ 535,710
Daikin Manufacturing ............. 53,000 800,425
Kasai Kogyo Co. .................. 15,000 56,634
Mabuchi Motor .................... 40,000 2,756,180
Minebea Co. ...................... 240,000 1,540,440
Pacific Dunlop ................... 22,300 46,915
------------
6,368,798
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
AUTOS & TRUCKS (1.5%)
Chrysler Corp. ................... 89,700 4,294,388
General Motors Corp. ............. 12,000 562,500
Honda Motor Corp. ................ 31,000 475,488
Mitsubishi Motors Corp. .......... 228,000 1,880,385
Volvo AB Series B ................ 55,500 1,058,577
------------
8,271,338
------------
FOOD SERVICES, LODGING (0.4%)
AAPC Limited ..................... 1,500,000 703,643
ABR Holdings Ltd. ................ 30,000 15,027
Cafe de Coral .................... 250,000 62,356
International Fast Food Corp.* .. 8,000 8,500
International Pizza Corp.* ...... 32,700 36,788
International Pizza Corp.--
Warrants* ....................... 32,700 4,088
McDonald's Corp. ................. 30,000 1,173,750
Ryan Hotels PLC .................. 400,000 203,165
------------
2,207,317
------------
HOUSEHOLD FURNITURE, APPLIANCES (1.5%)
Atag Holdings .................... 3,800 297,586
Electrolux B ..................... 15,000 683,753
Industrie Natuzzi (ADR) .......... 57,500 1,904,688
Morishita Co. Ltd. ............... 13,000 107,522
Nippon Electric Glass ............ 117,000 1,877,411
Noritz Co. ....................... 37,000 694,118
Philips Electronics .............. 30,000 1,270,555
Sharp Corp. ...................... 95,000 1,255,383
Shimachu Co. ..................... 13,000 329,774
------------
8,420,790
------------
LEISURE RELATED (1.4%)
Carnival Corp. ................... 21,000 490,875
Cinar Films, Inc. (Class B)* .... 48,000 471,000
Genting Berhad ................... 15,000 148,277
Helicopter Line Ltd.* ............ 600,000 1,805,085
Nelvana Limited*+++ .............. 135,800 1,829,322
Polygram ......................... 35,000 2,067,556
Resorts World BHD* ............... 50,000 293,273
Skis Rossignol ................... 400 94,244
Skis Rossignol--Rights* .......... 400 0
Thorn EMI ........................ 25,000 519,080
------------
7,718,712
------------
PHOTO & OPTICAL (1.1%)
Eastman Kodak Co. ................ 87,300 5,292,563
Luxottica Group (ADR) ............ 20,000 742,500
------------
6,035,063
------------
RETAIL--GENERAL (3.4%)
Bunkyodo Co. Ltd. ................ 9,000 294,142
Centros Comerciales Pryca S.A.* . 72,000 1,338,009
Daiichi Corp. .................... 9,600 195,953
</TABLE>
B-29
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Eidensha Co. Ltd. ................ 58,000 $ 786,974
Fu Hui Jewellery* ................ 900,000 52,340
Home Depot, Inc. ................. 34,000 1,381,250
Home Wide Corp. .................. 4,400 49,371
Ishiguro Homa .................... 29,000 492,714
Matsuyadenki Co. Industries ..... 23,000 238,806
MFI Furniture PLC* ............... 200,000 370,715
Nissen Corp. Ltd. ................ 33,700 1,013,922
Rinascente ....................... 195,000 1,108,898
Sato Corp. ....................... 50,730 897,823
Sears Roebuck & Co. .............. 138,300 8,280,713
Shimamura Co. Ltd. ............... 38,000 1,345,053
Swank International Manufacturing 1,400,000 161,028
Swank International
Manufacturing--Warrants* ........ 120,000 155
Tsutsumi Jewelry Co. ............. 2,600 118,412
Xebio Co. ........................ 19,100 653,531
------------
18,779,809
------------
TOTAL CONSUMER CYCLICALS (12.0%) 66,174,237
------------
CONSUMER NONCYCLICALS
BEVERAGES (0.8%)
Grand Metropolitan ............... 200,000 1,226,700
Lion Nathan Ltd. ................. 910,000 1,800,806
Panamerican Beverages ............ 35,000 1,050,000
Takara Shuzo Co. ................. 45,000 340,334
------------
4,417,840
------------
DRUGS (4.3%)
Astra AB (Series A) .............. 60,000 1,855,015
Lilly (Eli) & Co. ................ 4,000 314,000
Merck & Co., Inc. ................ 42,000 2,058,000
Novo-Nordisk AS .................. 22,900 2,443,404
Pfizer, Inc. ..................... 21,000 1,939,875
Roche Holdings AG Genusscheine .. 800 5,155,015
Sankyo Co. ....................... 32,000 743,791
Santen Pharmaceutical Co. ........ 103,000 2,746,505
Takeda Chemical Industries ...... 47,000 621,084
Yamanouchi Pharmaceutical ........ 90,000 2,028,199
Zeneca Group PLC ................. 220,000 3,717,329
------------
23,622,217
------------
FOODS (0.5%)
Nestle AG--Registered ............ 500 520,625
Shriram Industrial Enterprises
Ltd. (GDR)+ ..................... 165,000 1,546,875
Shriram Industrial Enterprises
Ltd.--Warrants* ................. 55,000 13,750
Viscofan Envoltura ............... 30,000 443,525
------------
2,524,775
------------
HOSPITAL SUPPLIES & SERVICES (1.0%)
Abbott Laboratories, Inc. ........ 52,000 2,106,000
Healthsource, Inc.* .............. 56,000 1,960,000
Quest Medical, Inc.* ............. 49,543 600,709
Tamro Group ...................... 10,000 44,516
United Healthcare Corp. .......... 24,500 1,013,688
------------
5,724,913
------------
RETAIL--FOOD (0.3%)
Familymart Co. ................... 12,900 $ 646,864
Kesko ............................ 55,000 551,525
Ministop Co. Ltd. ................ 4,000 95,334
York-Benimaru Co. ................ 4,700 177,453
------------
1,471,176
------------
SOAPS & TOILETRIES (0.1%)
Colgate Palmolive Co. ............ 10,000 731,250
------------
TOBACCO (1.9%)
Loews Corp. ...................... 47,900 5,795,900
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Philip Morris Cos, Inc. .......... 64,000 4,760,000
------------
10,555,900
------------
TOTAL CONSUMER NONCYCLICALS (8.9%) 49,048,071
------------
CREDIT SENSITIVE
BANKS (3.3%)
Advance Bank Australia--Rights* . 89,000 30,996
Akita Bank ....................... 71,550 612,044
Allied Irish Bank ................ 200,000 943,735
Allied Irish Bank--Warrants* .... 30,000 146,475
Asahi Bank Ltd. .................. 120,000 1,281,340
Banco Latinoamericano de
Exportaciones, S.A. ............. 56,000 1,855,000
Banco Osorno Y La Union (ADR) ... 15,000 208,125
Banco Popular .................... 6,000 892,006
Bancomer B Local* ................ 1,000,000 292,800
Bancomer B Local--Rights* ........ 37,037 0
Barclays Bank .................... 80,000 859,803
Depfa Bank AG .................... 200 101,313
Dresdner Bank AG ................. 28,000 809,922
Grupo Financiero Banorte
(Class C)* ...................... 143,000 185,328
Hachijuni Bank ................... 87,000 1,077,813
Hock Hua Bank .................... 180,000 679,245
HSBC Holding PLC ................. 135,000 1,731,597
Mitsubishi Bank .................. 75,000 1,619,373
Overseas Chinese Bank ............ 116,000 1,286,583
Overseas Union Bank Ltd. ......... 220,400 1,387,850
Sanwa Bank ....................... 23,000 434,193
Schweiz Bankverein ............... 500 177,160
Sparbanken Sverige AB+ ........... 120,000 1,014,350
Toho Bank ........................ 60,000 488,784
United Overseas Bank ............. 6,000 56,673
Yamanashi Chuo Bank .............. 26,000 291,428
------------
18,463,936
------------
FINANCIAL SERVICES (3.6%)
American Express Co. ............. 41,000 1,440,125
Americredit Corp.* ............... 326,700 3,634,538
Capital One Financial Corp. ..... 70,000 1,365,000
Credit Local de France ........... 25,000 2,318,990
Dean Witter Discover & Co. ...... 20,000 940,000
First USA, Inc. .................. 10,200 452,625
Franchise Finance Corp. of
America ......................... 38,000 817,000
Govett & Co. ..................... 10,000 43,754
Hong Leong Finance ............... 160,000 432,773
Invesco .......................... 430,000 1,453,822
</TABLE>
B-30
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
JCG Holdings ..................... 142,000 $ 93,592
Mercury Finance Co. .............. 77,300 1,488,025
Merrill Lynch & Co., Inc. ........ 9,000 472,500
Nichiei Co. Ltd. ................. 24,000 1,480,975
Promise Co. Ltd. ................. 33,600 1,403,386
Sanyo Shinpan Finance Co. Ltd. .. 6,500 475,488
Student Loan Marketing
Association ..................... 21,000 984,375
Yamaichi Securities .............. 90,000 482,095
------------
19,779,063
------------
INSURANCE (4.8%)
Acceptance Industries Cos., Inc.* 85,100 1,233,950
Aegon N.V. ....................... 37,500 1,297,670
American International Group,
Inc. ............................ 57,500 6,555,000
Corporacion Mapfre Cia Inter .... 5,500 270,286
Dai Tokyo Fire & Marine Insurance 32,000 226,535
General Re Corp. ................. 1,400 187,425
John Alden Financial Corp. ...... 99,200 1,698,800
Koa Fire & Marine ................ 60,000 368,120
PennCorp Financial Group, Inc. .. 75,700 1,400,450
The PMI Group, Inc. .............. 15,000 650,625
Progressive Corp. ................ 47,700 1,830,488
Pxre Corp. ....................... 18,400 432,400
TIG Holdings, Inc. ............... 33,000 759,000
Travelers, Inc. .................. 148,400 6,492,500
Twentieth Century Industries,
Inc.* ........................... 234,000 2,925,000
USF&G Corp. ...................... 15,500 251,875
------------
26,580,124
------------
MORTGAGE RELATED (0.2%)
Federal National Mortgage
Association ..................... 12,900 1,217,438
------------
REAL ESTATE (3.7%)
AMLI Residential Property Trust . 32,000 608,000
Associated Estates Realty Corp. . 25,000 528,125
Avalon Properties, Inc. .......... 9,700 192,788
CBL & Associates Properties ..... 25,700 510,788
Cheung Kong Holdings ............. 160,000 791,956
Chubu Sekiwa Real Estate ......... 23,000 244,233
Columbus Realty Trust ............ 19,000 356,250
Daibiru Corp. .................... 10,000 116,571
Essex Property Trust, Inc. ...... 32,800 594,500
Evans Withycombe Residential,
Inc. ............................ 10,000 203,750
First Industrial Realty Trust ... 62,000 1,271,000
Gables Residential Trust ......... 32,000 656,000
Highwoods Properties, Inc. ...... 52,000 1,326,000
Hong Kong Land Holding ........... 710,000 1,292,128
JDN Realty Corporation ........... 20,000 407,500
JP Realty, Inc. .................. 76,300 1,564,150
Macerich Co. ..................... 50,800 996,950
Manufactured Home Communities ... 30,000 461,250
Paragon Group, Inc. .............. 20,000 372,500
Saul Centers, Inc. ............... 36,000 576,000
Shurgard Storage Centers, Inc.
(Class A) ....................... 22,000 $ 506,000
Simon Property Group, Inc. ...... 14,000 351,750
Spieker Properties, Inc. ......... 57,700 1,291,038
Storage USA, Inc. ................ 48,000 1,362,000
Summit Properties ................ 102,000 1,759,500
Sun Communities, Inc. ............ 41,000 1,025,000
Tucker Properties, Corp . ........ 54,900 665,663
Walden Residential Properties,
Inc. ............................ 27,900 512,663
------------
20,544,053
------------
UTILITY--ELECTRIC (1.6%)
Chilectra S.A. ................... 7,000 351,750
Enersis S.A. (ADR) ............... 20,000 590,000
EVN .............................. 3,600 503,820
Hidroelectrica del Cantabrico ... 8,000 244,476
Powergen PLC ..................... 800,000 6,154,181
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Veba ............................. 2,500 981,668
------------
8,825,895
------------
UTILITY--TELEPHONE (1.6%)
Atlantic Tele-Network* ........... 15,000 121,875
Empresas Telex-Chile S.A. (ADR) . 50,000 675,000
Kon PTT Nederland+ ............... 49,000 1,762,055
Nippon Telegraph & Telephone
Corp.* .......................... 195 1,633,532
PT Indonesian Satellite (ADR) ... 40,000 1,530,000
Stet D Risp Port ................. 119,880 266,599
Stet Societa Finanziaria
Telefonica (ADR) ................ 64,000 177,176
Telecom Argentina (ADR)*+ ........ 1,000 45,250
Tele Danmark AS, B Shares ........ 12,200 679,112
Telephone & Data Systems, Inc. .. 41,700 1,516,838
------------
8,407,437
------------
TOTAL CREDIT SENSITIVE (18.8%) . 103,817,946
------------
ENERGY
COAL & GAS PIPELINES (0.3%)
Pittston Services Group .......... 67,000 1,608,000
------------
OIL--DOMESTIC (0.2%)
Louisiana Land & Exploration
Corp. ........................... 10,500 418,688
XCL Corp.* ....................... 850,000 690,625
------------
1,109,313
------------
OIL--INTERNATIONAL (1.2%)
Ampolex Ltd. ..................... 350,000 796,040
Aran Energy PLC* ................. 880,000 553,049
British Petroleum Co. PLC ........ 50,000 358,384
Canadian Occidental .............. 5,000 155,625
Norsk Hydro AS ................... 50,000 2,097,305
Repsol SA ........................ 60,000 1,888,079
Showa Shell Sekiyu ............... 48,300 462,741
YPF Sociedad Anonima (ADR) ...... 5,000 94,375
Yukong Ltd. (GDR)*+ .............. 35,000 367,500
Yukong Ltd. (GDS)* ............... 4,194 72,893
------------
6,845,991
------------
OIL--SUPPLIES & CONSTRUCTION (0.9%)
Coflexip (ADR) ................... 69,117 1,753,844
</TABLE>
B-31
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Ensco International, Inc.* ...... 32,300 $ 512,763
Seagull Energy Corp.* ............ 33,000 544,500
Western Atlas, Inc.* ............. 46,100 2,045,688
Wilrig AS* ....................... 10,000 102,228
------------
4,959,023
------------
RAILROADS (0.4%)
Conrail, Inc. .................... 38,000 2,113,750
------------
UTILITY--GAS (0.2%)
Renaissance Energy Ltd.* ......... 38,000 785,124
------------
TOTAL ENERGY (3.2%) ............. 17,421,201
------------
TECHNOLOGY
ELECTRONICS (10.8%)
Advantest Corp. .................. 15,000 566,338
Alps Electric Co. ................ 47,000 492,431
Applied Materials, Inc.* ......... 16,000 1,386,000
ASM Lithography Holding N.V.* ... 63,000 2,196,355
Casio Computer Co. Ltd. .......... 56,000 505,457
Cisco Systems, Inc.* ............. 140,000 7,078,750
Disco Co. ........................ 6,000 174,149
EMC Corp.* ....................... 253,000 6,135,250
Fuji Electronics Co. ............. 38,000 937,054
Futaba Corp. ..................... 31,000 1,404,519
General Instrument Corp.* ........ 125,100 4,800,713
GP Batteries International ...... 50,000 122,500
Hirose Electric Co. Ltd. ......... 12,000 743,319
Intel Corp. ...................... 123,000 7,787,438
Kyocera Corp. .................... 45,000 3,705,976
Lasertec Corp. ................... 5,000 203,528
Micron Technology, Inc. .......... 22,000 1,207,250
Motorola, Inc. ................... 102,400 6,873,600
Murata Manufacturing Co. Ltd. ... 36,000 1,363,459
National Semiconductor Corp.* ... 21,000 582,750
NEC Corp. ........................ 32,000 350,752
Nikon Corp. ...................... 141,000 1,387,458
Rohm Co. Ltd. .................... 70,000 3,617,486
TDK Corp. ........................ 45,000 2,049,437
Tokin Corp. ...................... 20,000 266,651
Tokyo Electron ................... 83,000 2,839,950
Tokyo Ohka Kogyo ................. 33,000 899,416
------------
59,677,986
------------
OFFICE EQUIPMENT (0.7%)
Canon Aptex, Inc. ................ 12,000 218,040
Canon, Inc. ...................... 172,000 2,800,543
Fujitsu Ltd. ..................... 34,000 338,977
Ricoh Elemex Corp. ............... 22,000 264,763
------------
3,622,323
------------
OFFICE EQUIPMENT SERVICES (0.6%)
Accugraph Corp. (Class A)* ...... 6,200 26,523
General Motors Corp. (Class E) .. 40,000 1,740,000
Getronics N.V. ................... 20,333 996,349
Silicon Graphics, Inc.* .......... 16,000 638,000
------------
3,400,872
------------
TELECOMMUNICATIONS (5.0%)
AirTouch Communications, Inc.*. . 172,000 4,902,000
BCE Mobile Communications, Inc.* 18,000 599,629
Bell Cablemedia PLC (ADR)* ...... 49,300 936,700
Cellular Communications Puerto
Rico, Inc.* ..................... 7,600 $ 232,750
Cox Communications, Inc.
(Class A)* ...................... 74,000 1,433,750
DDI Corporation .................. 210 1,684,856
DSC Communications Corp.* ........ 68,600 3,189,900
Filtronic Comtek PLC* ............ 1,600,000 7,102,447
Mannesmann AG .................... 6,000 1,833,171
Nihon Dempa Kogyo ................ 82,000 2,370,362
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Rogers Cantel Mobile
Communications, Inc.
(Class B)* ...................... 20,000 480,577
Rogers Cantel Mobile
Commmunications, Inc.
(Class B) (ADR)* ................ 63,900 1,517,625
Tokyo Broadcasting System ........ 14,000 199,870
United States Cellular Corp.* ... 35,600 1,076,900
------------
27,560,537
------------
TOTAL TECHNOLOGY (17.1%) ........ 94,261,718
------------
DIVERSIFIED
MISCELLANEOUS (1.4%)
Alba ............................. 9,300 480,073
BTR PLC .......................... 200,000 1,016,680
Crean (James) PLC--Units ......... 385,000 1,356,207
Hanson PLC ....................... 900,000 3,150,270
Indonesia Fund, Inc.* ............ 25,000 278,125
International UNP Holdings* ..... 450,000 170,385
International UNP Holdings--
Warrants* (a) ................... 225,000 19,660
ITT Corp. ........................ 9,000 1,057,500
Taiwan Fund, Inc. ................ 32,200 704,375
Taiwan Fund, Inc.--Rights* ...... 8,050 0
Tomkins PLC ...................... 150,000 536,979
Wembley Industries Holdings BHD* 100,000 176,374
------------
TOTAL DIVERSIFIED (1.4%) ........ 8,946,628
------------
TOTAL COMMON STOCKS (81.5%)
(Cost $416,136,935) ............. 450,462,741
------------
PREFERRED STOCKS:
CAPITAL GOODS (0.1%)
MACHINERY
Gea AG ........................... 1,280 410,977
------------
CREDIT SENSITIVE (0.2%)
INSURANCE
Marschollek Lauten Partners ..... 1,600 1,041,328
------------
TECHNOLOGY (0.4%)
TELECOMMUNICATIONS
Nokia Oy Cum ..................... 44,000 2,577,219
------------
TOTAL PREFERRED STOCKS (0.7%)
(Cost $1,050,745) ............... 4,029,524
------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
CAPITAL GOODS (0.2%)
BUILDING & CONSTRUCTION
Boskalis Westminster
5.25% Conv., 06/01/00 ........... $1,500,000 923,379
------------
</TABLE>
B-32
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
DIVERSIFIED (0.0%)
MISCELLANEOUS
Brierley Investment Ltd.
9.0% Conv. Sub. Note,
06/30/98 ................... $ 27,900 $ 19,959
------------
TOTAL LONG-TERM DEBT SECURITIES (0.2%)
(Amortized Cost $859,885) . 943,338
------------
SHORT-TERM DEBT SECURITIES:
BANK NOTES (1.8%)
State Street Bank & Trust
5.83%, due 09/05/95 ........ 10,000,000 10,001,335
------------
BANKERS' ACCEPTANCES
Chase Manhattan Bank
5.95%, due 08/21/95 ........ 2,500,000 2,478,927
Mitsubishi Bank Ltd.--N.Y.
5.93%, due 08/31/95 ........ 5,850,000 5,790,525
Union Bancorp Los Angeles
5.95%, due 07/11/95 ........ 3,000,000 2,995,042
------------
TOTAL BANKERS' ACCEPTANCES (2.0%) 11,264,494
------------
COMMERCIAL PAPER
Allianz of America Financial
6.05%, due 07/07/95 ........ 4,900,000 4,895,059
ASI Funding Corp.
5.82%, due 09/22/95 ........ 3,552,000 3,504,502
Beta Finance, Inc.
5.98%, due 07/13/95 ........ 12,000,000 11,976,080
SHORT-TERM DEBT SECURITIES (CONTINUED)
Commerzbank:
5.79%, due 09/12/95 ......... $10,700,000 $ 10,574,156
6.25%, due 07/03/95 ......... 5,100,000 5,098,229
Crosby Head Funding
5.98%, due 07/12/95 ......... 5,000,000 4,990,864
Dynamic Funding Corp.
6.03%, due 07/11/95 ......... 2,700,000 2,695,478
Greenwich Asset Funding
5.97%, due 08/14/95 ......... 10,000,000 9,927,033
October Corp.
5.93%, due 09/08/95 ......... 4,000,000 3,955,533
Progress Receivables Funding
6.0%, due 07/17/95 .......... 5,250,000 5,236,000
Province of Quebec
5.95%, due 07/12/95 ......... 5,000,000 4,990,910
------------
TOTAL COMMERCIAL PAPER (12.3%) 67,843,844
------------
U.S. GOVERNMENT (0.5%)
Federal Home Loan
Mortgage Corp.
5.81%, due 07/05/95 ......... 2,500,000 2,498,386
------------
TOTAL SHORT-TERM DEBT SECURITIES (16.6%)
(Amortized Cost $91,604,826) 91,608,059
------------
TOTAL INVESTMENTS (99.0%)
(Cost/Amortized Cost $509,652,391) 547,043,662
CASH AND RECEIVABLES
LESS LIABILITIES (1.0%) .... 5,688,656
------------
NET ASSETS (100.0%) .......... $552,732,318
============
</TABLE>
- --------------------
* Non-income producing.
+ 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) Fair valued.
See Notes to Financial Statements.
B-33
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS:
AUSTRALIA
Advance Bank Australia --Rights* 6,000 $ 2,090
Broken Hill Property ............. 3,300 40,624
Gwalia Consolidated .............. 5,000 6,894
Oil Search Ltd.* ................. 25,000 18,657
Villa World Ltd.* ................ 50,000 31,984
Westralian Sands Ltd. ............ 14,000 32,339
------------
TOTAL AUSTRALIA (2.0%) .......... 132,588
------------
CANADA
Accugraph Corp. (Class A)* ...... 5,000 21,389
Cinar Films, Inc. (Class B)* .... 3,000 29,438
Nelvana Limited*+ ................ 3,000 40,412
Quality Dino Entertainment Ltd.* 5,000 20,000
Royal Plastics Group Ltd.*+ ..... 2,000 27,488
------------
TOTAL CANADA (2.0%) ............. 138,727
------------
CHILE (0.4%)
Enersis S.A. (ADR) ............... 1,000 29,500
------------
DENMARK
Novo-Nordisk AS .................. 350 37,345
Tele Danmark AS, B shares ........ 600 33,399
------------
TOTAL DENMARK (1.0%) ............ 70,744
------------
FRANCE
Coflexip (ADR) ................... 2,000 50,750
Credit Local de France ........... 500 46,380
------------
TOTAL FRANCE (1.4%) ............. 97,130
------------
GERMANY
Apcoa Parking AG* ................ 400 21,260
Bayer AG ......................... 100 24,854
SGL Carbon AG*+ .................. 1,800 80,443
Veba ............................. 50 19,633
------------
TOTAL GERMANY (2.2%) ............ 146,190
------------
HONG KONG
Ek Chor China Motorcycle Co. .... 1,000 16,125
Hopewell Holdings ................ 35,000 29,627
HSBC Holding PLC ................. 2,000 25,653
Jardine International
Holdings Ltd. ................... 18,000 17,679
------------
TOTAL HONG KONG (1.3%) .......... 89,084
------------
INDONESIA
Asia Pacific Resources
International Holdings Ltd.
(Class A)* ...................... 2,000 18,250
PT Indonesian Satellite (ADR) ... 1,000 38,250
------------
TOTAL INDONESIA (0.8%) .......... 56,500
------------
IRELAND
Allied Irish Bank ................ 5,000 23,593
Crean (James) PLC--Units ......... 5,000 17,613
------------
TOTAL IRELAND (0.6%) ............ 41,206
------------
ITALY (0.5%)
Industrie Natuzzi (ADR) .......... 1,000 33,125
------------
JAPAN
Aim Services Co. Ltd.* ........... 1,000 23,597
Asahi Bank Ltd. .................. 2,000 21,356
COMMON STOCKS (Continued):
Asahi Diamond Industrial ......... 2,000 $ 24,541
Coco's Japan Co. Ltd ............. 1,000 11,563
Daibiru Corp. .................... 2,000 23,314
Denki Kagaku Kogyo K.K.* ......... 5,000 16,636
Eidensha Co. Ltd. ................ 1,000 13,569
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Familymart Co. ................... 1,000 50,145
Hachijuni Bank ................... 2,000 24,777
Hitachi Metals Ltd. .............. 4,000 44,882
Ishihara Sangyo Ltd.* ............ 12,000 35,679
Kaneshita Construction ........... 2,000 26,429
Keyence Corp. .................... 400 44,835
Kinden Corp. ..................... 1,000 18,642
Koa Fire & Marine ................ 8,000 49,083
Kurita Water Industries .......... 2,000 51,442
Kyoritsu Maintenance Co. Ltd.* .. 1,000 42,829
Mabuchi Motor .................... 400 27,562
Minebea Co. ...................... 3,000 19,256
Mitsubishi Bank .................. 1,000 21,592
Mitsubishi Motors Corp. .......... 2,000 16,495
National House Industrial ........ 1,000 18,524
Nichiei Co. Ltd. ................. 1,000 61,707
Nichiha .......................... 2,000 41,296
Nihon Dempa Kogyo ................ 1,000 28,907
Nikon Corp. ...................... 4,000 39,361
Nippon Electric Glass ............ 1,000 16,046
Nippon Kanzai Co. ................ 1,000 29,969
Nippon Sanso Corp.* .............. 8,000 36,057
Nippon Telegraph &
Telephone Corp.* ................ 5 41,885
Nippon Yakin Kogyo Co.* .......... 1,000 4,271
Noritz Co. ....................... 2,000 37,520
Ohsho Food Service Corp.* ........ 1,000 22,418
Oji Paper ........................ 4,000 38,464
Omron Corp. ...................... 2,000 38,228
Oriental Construction Co.* ...... 1,000 21,002
Promise Co. Ltd. ................. 300 12,530
PS Corp. ......................... 2,000 36,104
Sankyo Co. ....................... 1,000 23,243
Santen Pharmaceutical Co. ........ 1,000 26,665
Sanyo Shinpan Finance Co. Ltd. .. 500 36,576
Sato Corp. ....................... 1,000 17,698
Seijo Corp.* ..................... 1,000 37,166
Sekichu Co. Ltd.* ................ 1,000 13,922
Sekisui Chemical Co. Ltd. ........ 3,000 35,396
Sharp Corp. ...................... 1,000 13,215
Shimamura Co. Ltd. ............... 1,000 35,396
Showa Shell Sekiyu ............... 1,150 11,018
SMC Corp. ........................ 800 45,968
Takara Shuzo Co. ................. 1,000 7,563
Takeda Chemical Industries ...... 2,000 26,429
Toda Construction ................ 1,000 8,778
Toho Bank ........................ 3,000 24,439
Tokyo Broadcasting System ........ 1,000 14,276
Tokyo Electron ................... 1,000 34,216
Toppan Printing Co. .............. 3,000 39,290
Wesco, Inc. ...................... 1,000 22,772
Yamaichi Securities .............. 4,000 21,426
Yamanashi Chuo Bank .............. 3,000 33,626
Yamanouchi Pharmaceutical ........ 2,000 45,071
------------
TOTAL JAPAN (25.1%) ............. 1,706,662
------------
</TABLE>
B-34
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
MALAYSIA
Arab-Malaysia Finance* ........... 7,000 $ 28,281
Hock Hua Bank .................... 7,000 26,415
Kian Joo Can Factory ............. 10,000 39,171
Metacorp BHD* .................... 10,000 30,763
Peladang Kimia BHD* .............. 5,000 13,023
Tenaga Nasional BHD .............. 10,000 40,812
------------
TOTAL MALAYSIA (2.6%) ........... 178,465
------------
NETHERLANDS
Baan Co. N.V.* ................... 2,000 61,750
Philips Electronics N.V. ......... 500 21,176
Polygram ......................... 500 29,537
Randstad Holdings N.V. ........... 500 35,379
Wolters Kluwer ................... 1,000 88,254
------------
TOTAL NETHERLANDS (3.5%) ........ 236,096
------------
NORWAY
Liva Bil ......................... 1,400 32,940
Norsk Hydro AS ................... 500 20,973
Tomra Systems .................... 18,000 70,684
------------
TOTAL NORWAY (1.8%) ............. 124,597
------------
NEW ZEALAND
Air New Zealand Limted 'B'
Shares* ......................... 10,000 29,082
Lion Nathan Ltd. ................. 15,000 29,684
------------
TOTAL NEW ZEALAND (0.9%) ........ 58,766
------------
PANAMA
Banco Latinoamericano de
Exportaciones, S.A. ............. 2,000 66,250
Helicopter Line Ltd.* ............ 15,000 45,127
------------
TOTAL PANAMA (1.6%) ............. 111,377
------------
PERU (0.8%)
Banco Wiese Limitado (ADS) ...... 6,400 52,800
------------
SINGAPORE
Hong Kong Land Holding ........... 12,000 21,840
Overseas Chinese Bank Ltd. ...... 2,000 22,182
Overseas Union Bank .............. 3,000 18,891
------------
TOTAL SINGAPORE (0.9%) .......... 62,913
------------
SPAIN
Banco Popular .................... 200 29,734
Centros Comerciales Pryca S.A.* . 1,000 18,583
Corporacion Mapfre
Cia Inter ....................... 700 34,400
Repsol SA ........................ 1,000 31,468
------------
TOTAL SPAIN (1.7%) .............. 114,185
------------
SWEDEN (0.7%)
Sparbanken Sverige
AB Shares A+ .................... 6,000 $ 50,718
------------
SWITZERLAND (1.0%)
Roche Holdings AG Genusscheine .. 10 64,438
------------
UNITED KINGDOM
Aran Energy PLC* ................. 60,000 37,708
British Airways .................. 8,000 52,441
Hanson PLC ....................... 15,000 52,505
Powergen PLC (ADR) ............... 3,000 23,078
Reed International ............... 1,000 14,049
Takare* .......................... 10,000 30,548
Tate & Lyle PLC .................. 3,000 20,286
Williams Holdings PLC ............ 5,000 25,099
WPP Group PLC .................... 15,000 28,878
Zeneca Group PLC ................. 4,000 67,588
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
TOTAL UNITED KINGDOM (5.2%) .... 352,180
------------
TOTAL COMMON STOCKS (58.0%)
(Cost $3,904,623) ............... 3,947,991
------------
PREFERRED STOCKS:
GERMANY (0.6%)
Fielmann AG* ..................... 800 36,446
------------
TOTAL PREFERRED STOCKS (0.6%)
(Cost $29,852) .................. 36,446
------------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
NETHERLANDS (0.7%)
Boskalis Westminster
5.25% Conv., 06/01/00 ........... $ 80,000 49,247
------------
TOTAL LONG-TERM DEBT SECURITIES (0.7%)
(Amortized Cost $44,748) ........ 49,247
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (41.1%)
Federal Home Loan Mortgage Corp.
6.1%, due 07/03/95 .............. 2,800,000 2,799,905
------------
TOTAL SHORT-TERM DEBT SECURITIES (41.1%)
(Amortized Cost $2,799,905) .... 2,799,905
------------
TOTAL INVESTMENTS (100.4%)
(Cost/Amortized Cost $6,779,128) 6,833,589
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (-0.4%) ............. (24,863)
------------
NET ASSETS (100.0%) .............. $6,808,726
============
</TABLE>
- -------------------
* Non-income producing.
+ 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.
B-35
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ----------- ----------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (4.5%)
IVI Publishing, Inc.* ........... 230,900 $ 1,609,084
Playboy Enterprises, Inc.
(Class B)*++ ................... 780,900 6,149,588
Viacom, Inc. (Class B)* ......... 1,951,655 90,508,001
----------------
98,266,673
----------------
PROFESSIONAL SERVICES (2.8%)
ADVO Systems, Inc. .............. 941,175 17,764,678
Xtra Corp.++ .................... 963,700 44,571,125
----------------
62,335,803
----------------
TRUCKING, SHIPPING (0.8%)
TNT Freightways Corp. ........... 915,550 18,196,556
----------------
TOTAL BUSINESS SERVICES (8.1%) 178,799,032
----------------
CONSUMER CYCLICALS
AIRLINES (0.7%)
Mesa Airlines, Inc.* ............ 154,600 1,410,725
Northwest Airlines Corp.
(Class A)* ..................... 406,300 14,372,863
----------------
15,783,588
----------------
APPAREL, TEXTILE (4.1%)
Tommy Hilfiger Corp.* ........... 363,900 10,189,200
Nine West Group, Inc.*++ ........ 2,201,900 80,369,350
----------------
90,558,550
----------------
FOOD SERVICES, LODGING (4.7%)
Hospitality Franchise
Systems, Inc.* ................. 1,546,100 53,533,713
Host Marriott Corp.* ............ 2,232,100 23,716,063
Promus Cos., Inc.* .............. 647,800 25,264,200
----------------
102,513,976
----------------
HOUSEHOLD FURNITURE, APPLIANCES (1.9%)
Industrie Natuzzi (ADR) ......... 1,267,000 41,969,375
----------------
LEISURE RELATED (2.0%)
Discovery Zone, Inc.* ........... 424,100 3,843,406
Heritage Media Corp.
(Class A)* ..................... 786,150 22,700,081
Marker International* ........... 258,300 1,646,663
Mirage Resorts, Inc.* ........... 502,600 15,392,125
----------------
43,582,275
----------------
RETAIL--GENERAL (7.1%)
Bed Bath & Beyond, Inc.* ........ 162,100 3,930,925
Federated Department
Stores, Inc.* .................. 2,006,900 51,677,675
Office Depot, Inc.* ............. 3,236,525 91,027,266
Staples, Inc.* .................. 374,800 10,822,350
----------------
157,458,216
----------------
TOTAL CONSUMER CYCLICALS (20.5%) 451,865,980
----------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (11.2%)
Apria Healthcare Group, Inc.* .. 1,042,580 29,452,885
Boston Scientific Corp.* ........ 1,725,900 55,013,063
Centocor, Inc.* ................. 734,500 10,512,531
Cephalon, Inc.* ................. 635,100 11,749,350
Healthwise of America, Inc.*++ . 833,635 21,257,693
COMMON STOCKS (Continued):
Incontrol, Inc.* ................ 385,000 $ 3,657,500
NeoPath, Inc.* .................. 226,600 3,738,900
Saint Jude Medical, Inc. ........ 868,000 43,508,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ----------- ----------------
<S> <C> <C>
COMMON STOCKS (Continued):
Sun Healthcare Group, Inc.*++ .. 3,424,300 53,932,725
Surgical Care Affiliates, Inc. . 680,800 13,020,300
----------------
TOTAL CONSUMER NONCYCLICALS (11.2%) 245,843,447
----------------
CREDIT SENSITIVE
BANKS (1.3%)
Mellon Bank Corp. ............... 708,463 29,489,772
----------------
INSURANCE (4.6%)
CNA Financial Corp.* ............ 1,176,000 101,577,000
----------------
UTILITY--TELEPHONE (4.0%)
Telephone & Data Systems, Inc. . 2,360,200 85,852,275
----------------
TOTAL CREDIT SENSITIVE (9.9%) . 216,919,047
----------------
ENERGY
COAL & GAS PIPELINES (0.9%)
Pittston Services Group ......... 811,000 19,464,000
----------------
OIL--DOMESTIC (2.8%)
Diamond Shamrock, Inc. .......... 1,428,500 36,783,875
Murphy Oil Corp. ................ 425,000 17,425,000
Snyder Oil Corp. ................ 580,300 7,326,288
----------------
61,535,163
----------------
OIL--INTERNATIONAL (0.5%)
Arethusa, Ltd.* ................. 627,200 11,289,600
----------------
OIL--SUPPLIES & CONSTRUCTION (6.6%)
Coflexip (ADR) .................. 413,200 10,484,950
Global Marine, Inc.*++ .......... 8,972,700 51,593,025
Noble Drilling Corp.* ........... 3,720,000 27,435,000
Rowan Cos., Inc.*++ ............. 5,521,800 44,864,625
Sonat Offshore Drilling, Inc. .. 378,600 10,884,750
----------------
145,262,350
----------------
RAILROADS (1.0%)
Conrail, Inc. ................... 383,000 21,304,375
----------------
TOTAL ENERGY (11.8%) ........... 258,855,488
----------------
TECHNOLOGY
ELECTRONICS (13.0%)
American Superconductor Corp.*++ 531,100 7,568,175
Applied Materials, Inc.* ........ 234,100 20,278,913
Bay Networks, Inc.* ............. 369,367 15,282,560
Cisco Systems, Inc.* ............ 216,900 10,967,006
Cypress Semiconductor Corp.* ... 441,200 17,868,600
EMC Corp.* ...................... 1,418,000 34,386,500
General Instrument Corp.* ...... 537,500 20,626,562
Integrated Device
Technology, Inc.* .............. 308,000 14,245,000
Kemet Corp.* .................... 81,700 4,289,250
LSI Logic Corp.* ................ 464,400 18,169,650
Lam Research Corp.* ............. 338,700 21,676,800
National Semiconductor Corp.* .. 806,500 22,380,375
Sensormatic Electronics Corp. .. 1,563,250 55,495,375
Vishay Intertechnology, Inc.* .. 469,800 16,971,525
Western Digital Corp.* .......... 331,700 5,763,288
----------------
285,969,579
----------------
OFFICE EQUIPMENT (2.7%)
Dell Computer Corp.* ............ 243,800 14,658,475
</TABLE>
B-36
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ----------- ----------------
<S> <C> <C>
COMMON STOCKS (Continued):
Read-Rite Corp.* ................ 617,700 $ 16,523,475
Symantec Corp.* ................. 721,900 20,844,862
Wang Laboratories, Inc.* ........ 460,200 7,535,775
----------------
59,562,587
----------------
OFFICE EQUIPMENT SERVICES (2.4%)
Cirrus Logic, Inc.* ............. 235,600 14,769,175
Informix Corp.* ................. 1,503,300 38,146,237
----------------
52,915,412
----------------
TELECOMMUNICATIONS (13.9%)
ADC Telecommunications, Inc.* .. 611,400 21,857,550
American Satellite Network
-- Warrants* ................... 49,450 0
BCE Mobile Communications, Inc.* 465,400 15,503,731
Cellular Communications, Inc.
(Class A)* ..................... 994,600 45,254,300
DSC Communications Corp.* ...... 435,800 20,264,700
Mannesmann AG (ADR) ............. 250,000 76,000,000
MFS Communication, Inc.* ........ 236,600 7,630,350
Millicom International
Cellular S.A.* ................. 1,145,215 33,926,993
Scientific Atlanta, Inc. ........ 1,242,600 27,337,200
United States Cellular Corp.* .. 1,117,400 33,801,350
Vanguard Cellular Systems, Inc.
(Class A)* ..................... 1,031,350 24,752,400
----------------
306,328,574
----------------
TOTAL TECHNOLOGY (32.0%) ...... 704,776,152
----------------
DIVERSIFIED (0.5%)
MISCELLANEOUS
ITT Corp. ....................... 85,000 9,987,500
----------------
TOTAL COMMON STOCKS (94.0%)
(Cost $1,676,998,631) .......... 2,067,046,646
----------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------ ------------- --------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
CERTIFICATES OF DEPOSIT (0.5%)
Sanwa Bank Ltd.
5.95%, due 07/06/95 .......... $10,000,000 $ 9,999,871
--------------
COMMERCIAL PAPER
Australia New Zealand Bank
6.0%, due 07/06/95 ........... 5,000,000 4,995,833
Copley Financing Corp.
6.0%, due 07/28/95 ........... 14,590,000 14,524,345
Dynamic Funding Corp.
6.03%, due 07/11/95 .......... 8,800,000 8,785,260
Equipment Funding, Inc.
6.0%, due 08/07/95 ........... 16,015,000 15,916,241
General Electric Capital Corp.
5.94%, due 07/10/95 .......... 10,000,000 9,985,150
ODC Capital Corp.
6.02%, due 07/26/95 .......... 9,000,000 8,962,375
Province of British Columbia
5.85%, due 08/21/95 .......... 4,000,000 3,966,850
Province of Ontario
5.91%, due 08/21/95 .......... 5,000,000 4,958,137
Sheffield Receivables Corp.
6.1%, due 07/12/95 ........... 15,000,000 14,972,042
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------ ------------- --------------
<S> <C> <C>
TOTAL COMMERCIAL PAPER (4.0%) 87,066,233
--------------
U.S. GOVERNMENT (0.0%)
Federal Home Loan Mortgage Corp.
5.81%, due 07/05/95 .......... 600,000 599,613
--------------
TIME DEPOSITS (0.1%)
Mitsubishi Bank Ltd.-- N.Y.
6.19%, due 07/05/95 .......... 3,900,000 3,900,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (4.6%)
(Amortized Cost $101,565,717) 101,565,717
--------------
TOTAL INVESTMENTS (98.6%)
(Cost/Amortized Cost $1,778,564,348) 2,168,612,363
CASH AND RECEIVABLES
LESS LIABILITIES (1.4%) ..... 30,778,154
--------------
NET ASSETS (100.0%) ........... $2,199,390,517
==============
</TABLE>
- --------------------
* Non-income producing.
++ Affiliated company as defined under the Investment Company Act of 1940
(see Note 5).
See Notes to Financial Statements.
B-37
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.6%)
Hercules, Inc. .................. 25,000 $1,218,750
------------
CHEMICALS--SPECIALTY (0.1%)
Morton International, Inc. ..... 10,000 292,500
------------
METALS & MINING (0.3%)
Aluminum Co. of America ......... 14,000 701,750
------------
PAPER (0.6%)
International Paper Co. ......... 15,000 1,286,250
------------
TOTAL BASIC MATERIALS (1.6%) .. 3,499,250
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
Browning-Ferris Industries, Inc. 10,000 361,250
------------
PRINTING, PUBLISHING &
BROADCASTING (0.4%)
Capital Cities ABC, Inc. ........ 8,600 928,800
------------
PROFESSIONAL SERVICES (0.4%)
First Financial Management Corp. 2,000 171,000
Reynolds & Reynolds Co. ......... 25,000 737,500
------------
908,500
------------
TOTAL BUSINESS SERVICES (1.0%) 2,198,550
------------
CAPITAL GOODS
ELECTRICAL EQUIPMENT (0.7%)
General Electric Co. ............ 25,000 1,409,375
------------
MACHINERY (0.5%)
Caterpillar, Inc. ............... 12,000 771,000
Deere & Co. ..................... 5,000 428,125
------------
1,199,125
------------
TOTAL CAPITAL GOODS (1.2%) .... 2,608,500
------------
CONSUMER CYCLICALS
FOOD SERVICES, LODGING (0.2%)
McDonald's Corp. ................ 14,000 547,750
------------
LEISURE RELATED (0.1%)
Disney (Walt) Co. ............... 3,000 166,875
------------
TOTAL CONSUMER CYCLICALS (0.3%) 714,625
------------
CONSUMER NONCYCLICALS
BEVERAGES (0.4%)
Coca-Cola Co. ................... 15,000 956,250
------------
DRUGS (0.4%)
Pfizer, Inc. .................... 10,000 923,750
------------
FOODS (0.4%)
IBP, Inc. ....................... 20,000 870,000
------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Abbott Laboratories, Inc. ...... 10,000 405,000
Columbia HCA Healthcare Corp. .. 6,000 259,500
Medtronic, Inc. ................. 15,000 1,156,875
------------
1,821,375
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ ------------
<S> <C> <C>
SOAPS & TOILETRIES (0.7%)
Gillette Corp. .................. 32,100 1,432,463
------------
TOBACCO (1.0%)
Philip Morris Cos., Inc. ........ 21,000 1,561,875
UST, Inc. ....................... 18,000 535,500
------------
2,097,375
------------
TOTAL CONSUMER NONCYCLICALS (3.8%) 8,101,213
COMMON STOCKS (Continued):
------------
CREDIT SENSITIVE
BANKS (1.1%)
Bank of New York Co. ............ 35,000 $ 1,413,125
Citicorp ........................ 10,000 578,750
First Bank Systems .............. 10,000 410,000
------------
2,401,875
------------
FINANCIAL SERVICES (0.2%)
American Express Co. ............ 12,000 421,500
------------
INSURANCE (0.6%)
AFLAC, Inc. ..................... 25,000 1,093,750
General Reinsurance Corp. ...... 2,000 267,750
------------
1,361,500
------------
UTILITY--GAS (0.3%)
ENRON Corp. ..................... 18,000 632,250
------------
UTILITY--TELEPHONE (0.5%)
Ameritech Corp. ................. 20,000 880,000
------------
TOTAL CREDIT SENSITIVE (2.7%) . 5,697,125
------------
ENERGY
OIL--DOMESTIC (0.4%)
Amoco Corp. ..................... 6,000 399,750
Phillips Petroleum Co. .......... 15,000 500,625
------------
900,375
------------
OIL--INTERNATIONAL (0.3%)
Mobil Corp. ..................... 6,000 576,000
------------
TOTAL ENERGY (0.7%) ............ 1,476,375
------------
TECHNOLOGY (0.2%)
ELECTRONICS
Molex, Inc. ..................... 12,000 465,000
------------
DIVERSIFIED (0.2%)
MISCELLANEOUS
Allied Signal, Inc. ............. 8,000 356,000
------------
TOTAL COMMON STOCKS (11.7%)
(Cost $20,212,840) ............. 25,116,638
------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE
BANKS (5.7%)
Chemical Banking Corp.
8.625% Sub. Deb., 05/01/02 .... $5,500,000 5,999,180
Citicorp
7.625%, 05/01/05 ............... 6,000,000 6,248,520
------------
12,247,700
------------
FINANCIAL SERVICES (2.6%)
General Motor Acceptance Corp.
5.5%, 10/15/02(a) .............. 5,100,000 5,663,703
------------
FOREIGN GOVERNMENT (2.5%)
Province of Quebec
7.5%, 07/15/02 ................. 5,150,000 5,312,945
------------
MORTGAGE RELATED (2.7%)
Premier Auto Trust
7.15%, 02/04/99 ................ 5,650,000 5,748,875
------------
</TABLE>
B-38
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------ --------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES
(CONTINUED):
U.S. GOVERNMENT (51.6%)
U.S. Treasury
7.125% Note, 09/30/99 ......... $ 3,000,000 $ 3,124,686
7.75% Note, 12/31/99 .......... 15,000,000 16,012,500
6.75% Note, 04/30/00 .......... 19,600,000 20,200,250
7.5% Note, 02/15/05 ........... 10,975,000 11,955,891
6.5% Note, 05/15/05 ........... 14,895,000 15,202,209
7.5% Bond, 11/15/24 ........... 17,930,000 19,857,475
7.625% Bond, 02/15/25 ......... 21,350,000 24,085,469
--------------
110,438,480
--------------
TOTAL CREDIT SENSITIVE (65.1%) 139,411,703
--------------
TECHNOLOGY (2.6%)
TELECOMMUNICATIONS
Tele-Communications, Inc.
7.25%, 08/01/05 ............... 5,700,000 5,480,670
--------------
TOTAL LONG-TERM DEBT SECURITIES (67.7%)
(Amortized Cost $138,169,770) 144,892,373
SHORT-TERM DEBT SECURITIES:
--------------
BANKERS' ACCEPTANCES (0.7%)
Mitsubishi Bank Ltd.--N.Y.
5.95%, due 07/20/95 ........... 1,500,000 1,495,290
SHORT-TERM DEBT SECURITIES
(Continued):
--------------
CERTIFICATES OF DEPOSIT (2.3%)
Societe Generale Bank
5.97%, due 08/04/95 ........... $ 5,000,000 $ 5,000,093
--------------
COMMERCIAL PAPER
Crosby Head Funding
5.98%, due 07/26/95 ........... 5,000,000 4,979,236
Deutsche Bank Financial, Inc.
5.96%, due 07/06/95 ........... 7,500,000 7,493,792
Household Finance Corp.
5.95%, due 07/11/95 ........... 7,500,000 7,487,604
UBS Finance Delaware, Inc.
6.2%, due 07/05/95 ............ 7,000,000 6,995,178
United Biscuits Holdings PLC
6.0%, due 08/01/95 ............ 7,500,000 7,461,250
--------------
TOTAL COMMERCIAL PAPER (16.1%) 34,417,060
--------------
TOTAL SHORT-TERM DEBT SECURITIES (19.1%)
(Amortized Cost $40,912,443) . 40,912,443
--------------
TOTAL INVESTMENTS (98.5%)
(Cost/Amortized Cost
$199,295,053) ................. 210,921,454
CASH AND RECEIVABLES
LESS LIABILITIES (1.5%) ....... 3,124,607
--------------
NET ASSETS (100.0%) ............ $214,046,061
==============
</TABLE>
- --------------------
(a) Debt security initially issued in zero coupon form which converts to
coupon form at a specific rate and date.
See Notes to Financial Statements.
B-39
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.4%)
Georgia Gulf Corp. .............. 20,900 $ 681,863
Hercules, Inc. .................. 75,000 3,656,250
IMC Global, Inc. ................ 110,000 5,953,750
Monsanto Co. .................... 50,500 4,551,313
Rohm & Haas Co. ................. 90,000 4,938,750
-------------
19,781,926
-------------
CHEMICALS--SPECIALTY (0.6%)
Morton International, Inc. ..... 140,000 4,095,000
Wellman, Inc. ................... 134,000 3,668,250
-------------
7,763,250
-------------
METALS & MINING (0.4%)
Wolverine Tube, Inc.* ........... 184,800 5,936,700
-------------
PAPER (0.3%)
Champion International Corp. ... 81,000 4,222,125
Jefferson Smurfit Corp.* ........ 16,000 210,000
-------------
4,432,125
-------------
TOTAL BASIC MATERIALS (2.7%) .. 37,914,001
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.7%)
Air & Water Technologies Corp.* 299,100 1,682,438
Thermo Instrument Systems,
Inc.* .......................... 250,000 6,125,000
WMX Technologies, Inc. .......... 75,000 2,128,125
-------------
9,935,563
-------------
PRINTING, PUBLISHING &
BROADCASTING (2.6%)
Cablevision Systems Corp.
(Class A)* ..................... 105,000 6,693,750
Clear Channel Communications,
Inc.* .......................... 121,500 7,821,563
Comcast Corp. (Class A) SPL .... 775,000 14,385,938
Infinity Broadcasting Corp.
(Class A)* ..................... 175,500 5,857,313
Time Warner, Inc. ............... 75,000 3,084,375
-------------
37,842,939
-------------
PROFESSIONAL SERVICES (0.2%)
Ideon Group, Inc. ............... 240,700 2,376,913
-------------
TOTAL BUSINESS SERVICES (3.5%) 50,155,415
-------------
CAPITAL GOODS
AEROSPACE (0.7%)
Boeing Co. ...................... 50,000 3,131,250
Coltec Industries, Inc.* ........ 300,000 5,175,000
General Motors Corp. (Class H) . 50,000 1,975,000
-------------
10,281,250
-------------
BUILDING & CONSTRUCTION (0.1%)
York International Corp. ........ 35,000 1,575,000
-------------
ELECTRICAL EQUIPMENT (0.5%)
General Electric Co. ............ 120,000 6,765,000
-------------
MACHINERY (0.3%)
Solectron Corp.* ................ 141,500 4,828,688
-------------
TOTAL CAPITAL GOODS (1.6%) .... 23,449,938
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
CONSUMER CYCLICALS
AUTO RELATED (0.4%)
Magna International, Inc.
(Class A) ...................... 120,000 $ 5,295,000
-------------
AUTOS & TRUCKS (0.4%)
Autozone, Inc.* ................. 250,000 6,281,250
-------------
FOOD SERVICES, LODGING (1.1%)
Luby's Cafeterias, Inc. ......... 260,000 5,232,500
Outback Steakhouse, Inc.* ...... 190,000 5,486,250
Taco Cabana (Class A)*++ ........ 823,950 4,531,725
-------------
15,250,475
-------------
LEISURE RELATED (1.7%)
Coastcast Corp.* ................ 130,000 1,413,750
Cyrk, Inc.* ..................... 212,800 1,888,600
Disney (Walt) Co. ............... 120,000 6,675,000
Gaylord Entertainment Co. (Class
A) ............................. 376,930 9,517,483
Hasbro, Inc. .................... 150,000 4,762,500
-------------
24,257,333
-------------
PHOTO & OPTICAL (0.5%)
Eastman Kodak Co. ............... 125,000 7,578,125
-------------
RETAIL--GENERAL (2.5%)
Eckerd Corp.* ................... 333,300 10,665,600
Fingerhut Companies, Inc. ...... 414,200 6,471,875
Home Depot, Inc. ................ 220,000 8,937,500
May Department Stores Co. ...... 160,000 6,660,000
Payless Cashways, Inc.* ......... 160,000 1,020,000
Price/Costco, Inc.* ............. 160,000 2,600,000
-------------
36,354,975
-------------
TOTAL CONSUMER CYCLICALS (6.6%) 95,017,158
-------------
CONSUMER NONCYCLICALS
BEVERAGES (0.7%)
Pepsico, Inc. ................... 230,000 10,493,750
-------------
CONTAINERS (0.3%)
Duracell International, Inc. ... 110,000 4,757,500
-------------
DRUGS (4.1%)
Glaxo Wellcome PLC (ADR) ........ 220,000 5,362,500
Lilly (Eli) & Co. ............... 70,000 5,495,000
Merck & Co., Inc. ............... 250,000 12,250,000
Mylan Laboratories, Inc. ........ 130,000 3,997,500
Pfizer, Inc. .................... 110,000 10,161,250
Schering Plough Corp. ........... 150,000 6,618,750
Upjohn Co. ...................... 185,000 7,006,870
Warner-Lambert Co. .............. 93,600 8,084,700
-------------
58,976,570
-------------
HOSPITAL SUPPLIES & SERVICES (2.2%)
Abbott Laboratories, Inc. ...... 100,000 4,050,000
Columbia HCA Healthcare Corp. .. 130,000 5,622,500
Medtronic, Inc. ................. 60,000 4,627,500
Surgical Care Affiliates, Inc. . 366,000 6,999,750
United Healthcare Corp. ......... 240,000 9,930,000
-------------
31,229,750
-------------
RETAIL -- FOOD (0.7%)
Sysco Corp. ..................... 340,000 10,030,000
-------------
</TABLE>
B-40
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
SOAPS & TOILETRIES (1.4%)
Colgate Palmolive Co. ........... 120,000 $ 8,775,000
Gillette Corp. .................. 260,000 11,602,500
-------------
20,377,500
-------------
TOBACCO (3.3%)
Loews Corp. ..................... 65,000 7,865,000
Philip Morris Cos., Inc. ........ 440,000 32,725,000
UST, Inc. ....................... 170,000 5,057,500
-------------
45,647,500
-------------
TOTAL CONSUMER NONCYCLICALS (12.7%) 181,512,570
-------------
CREDIT SENSITIVE
BANKS (0.7%)
BankAmerica Corp. ............... 80,000 4,210,000
Citicorp ........................ 100,000 5,787,500
-------------
9,997,500
-------------
FINANCIAL SERVICES (1.6%)
Dean Witter Discover & Co. ..... 90,000 4,230,000
MBNA Corp. ...................... 175,000 5,906,250
Mercury Finance Co. ............. 416,200 8,011,850
Merrill Lynch & Co., Inc. ...... 90,000 4,725,000
-------------
22,873,100
-------------
INSURANCE (3.0%)
American International
Group, Inc. .................... 150,000 17,100,000
General Re Corp. ................ 30,000 4,016,250
Life Re Corp. ................... 167,000 3,110,375
MGIC Investment Corp. ........... 75,000 3,515,625
NAC Re Corp. .................... 100,000 3,112,500
TIG Holdings, Inc. .............. 100,000 2,300,000
Transatlantic Holdings, Inc. ... 60,100 3,906,500
Travelers, Inc. ................. 130,000 5,687,500
-------------
42,748,750
-------------
REAL ESTATE (0.5%)
Oasis Residential, Inc. ......... 314,500 6,840,375
-------------
UTILITY--TELEPHONE (1.1%)
AT&T Corp. ...................... 130,000 6,906,250
Telephone & Data Systems, Inc. . 256,600 9,333,825
-------------
16,240,075
-------------
TOTAL CREDIT SENSITIVE (6.9%) . 98,699,800
-------------
ENERGY
OIL--DOMESTIC (2.3%)
Anadarko Petroleum Corp. ........ 252,000 10,867,500
Apache Corp. .................... 206,800 5,661,150
Atlantic Richfield Co. .......... 60,000 6,585,000
Louis Dreyfus Natural Gas Corp.* 161,400 2,380,650
Louisiana Land &
Exploration Corp. .............. 110,000 4,386,250
Occidental Petroleum Corp. ..... 157,500 3,602,813
-------------
33,483,363
-------------
OIL--INTERNATIONAL (0.2%)
Repsol S.A. (ADR) ............... 110,800 3,504,050
-------------
OIL--SUPPLIES & CONSTRUCTION (1.5%)
Seitel, Inc.* ................... 201,000 6,231,000
Smith International, Inc.* ..... 180,000 3,015,000
Western Atlas, Inc.* ............ 280,000 12,425,000
-------------
21,671,000
-------------
RAILROADS (1.0%)
Illinois Central Corp. .......... 377,900 $ 13,037,550
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
-------------
TOTAL ENERGY (5.0%) ............ 71,695,963
-------------
TECHNOLOGY
ELECTRONICS (3.9%)
Applied Materials, Inc.* ........ 30,000 2,598,750
Bay Networks, Inc.* ............. 122,500 5,068,438
Cisco Systems, Inc.* ............ 90,000 4,550,625
EMC Corp.* ...................... 175,000 4,243,750
General Instrument Corp.* ...... 200,000 7,675,000
Intel Corp. ..................... 130,000 8,230,625
Motorola, Inc. .................. 220,000 14,767,500
National Semiconductor Corp.* .. 125,000 3,468,750
Sensormatic Electronics Corp. .. 134,150 4,762,325
Sun Television and Appliances .. 39,300 294,750
-------------
55,660,513
-------------
OFFICE EQUIPMENT (1.4%)
Ceridian Corp.* ................. 116,300 4,288,563
Compaq Computer Corp.* .......... 127,400 5,780,775
Compuware Corp.* ................ 184,000 5,658,000
Hewlett-Packard Co. ............. 60,000 4,470,000
-------------
20,197,338
-------------
OFFICE EQUIPMENT SERVICES (1.3%)
General Motors Corp. (Class E) . 140,000 6,090,000
Oracle Corp.* ................... 210,000 8,111,250
Silicon Graphics, Inc.* ......... 100,000 3,987,500
-------------
18,188,750
-------------
TELECOMMUNICATIONS (2.9%)
AirTouch Communications, Inc.* . 630,000 17,955,000
Comnet Cellular, Inc.* .......... 80,000 2,240,000
Cox Communications, Inc.
(Class A)* ..................... 381,600 7,393,500
MCI Communications Corp. ........ 250,000 5,500,000
Scientific Atlanta, Inc. ........ 176,700 3,887,400
Vodafone Group PLC (ADR) ........ 121,100 4,586,662
-------------
41,562,562
-------------
TOTAL TECHNOLOGY (9.5%) ........ 135,609,163
-------------
DIVERSIFIED
MISCELLANEOUS (1.9%)
Allied Signal, Inc. ............. 100,000 4,450,000
ITT Corp. ....................... 183,600 21,573,000
-------------
TOTAL DIVERSIFIED (1.9%) ...... 26,023,000
-------------
TOTAL COMMON STOCKS (50.4%)
(Cost $677,961,529) ............ 720,077,008
-------------
PREFERRED STOCKS:
BASIC MATERIALS (0.2%)
PAPER
Bowater, Inc.
7.0% Conv. Series B ............ 78,000 2,944,500
BUSINESS SERVICES
PRINTING, PUBLISHING & BROADCASTING (0.2%)
LCI International
5.0% Conv. ..................... 55,000 2,268,750
-------------
PROFESSIONAL SERVICES (0.1%)
General Motors Corp.
6.5% Conv. Series C ............ 23,700 1,493,100
-------------
TOTAL BUSINESS SERVICES (0.3%) 3,761,850
-------------
</TABLE>
B-41
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
NUMBER OF VALUE
SHARES (NOTE 1)
- -------------------------------- ------------ -------------
<S> <C> <C>
PREFERRED STOCKS (Continued):
CONSUMER CYCLICALS (0.1%)
RETAIL--GENERAL
Best Buy Capital L.P.
6.5% Conv. ..................... 23,400 $ 997,425
-------------
CREDIT SENSITIVE
BANKS (0.1%)
First Chicago Corp.
5.75% Conv. Series B ........... 28,300 1,641,400
-------------
FINANCIAL SERVICES (0.2%)
Allstate Corp.
$2.30 Conv. .................... 50,800 2,070,100
First USA
$6.25 Conv. .................... 31,200 1,263,600
-------------
3,333,700
-------------
TOTAL CREDIT SENSITIVE (0.3%) . 4,975,100
-------------
ENERGY
OIL--DOMESTIC (0.1%)
Occidental Petroleum Corp.
$3.875 Conv.* .................. 27,900 1,586,813
-------------
RAILROADS (0.1%)
Burlington Northern, Inc.
6.25% Conv. Series A ........... 25,700 1,734,750
-------------
TOTAL ENERGY (0.2%) ............ 3,321,563
-------------
TECHNOLOGY
ELECTRONICS (0.2%)
National Semiconductor Corp.
$3.25 Conv. .................... 22,200 2,189,475
-------------
TOTAL PREFERRED STOCKS (1.3%)
(Cost $15,838,336) ............. 18,189,913
-------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.1%)
PAPER
Stone Container Corp.
8.875% Conv. Sub. Deb.,
07/15/00 ....................... $ 700,000 1,400,000
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
Thermo Electron Corp.
5.0% Euro Conv., 04/15/01 ..... 1,930,000 2,610,325
-------------
PRINTING, PUBLISHING & BROADCASTING (0.8%)
Time Warner Entertainment
8.375%, 03/15/23 ............... 11,800,000 11,626,776
-------------
PROFESSIONAL SERVICES (0.3%)
Danka Business Systems
6.75% Conv., 04/01/02+ ......... 1,600,000 1,688,000
First Financial Management Corp.
5.0% Conv., 12/15/99 ........... 1,975,000 2,678,594
-------------
4,366,594
-------------
TOTAL BUSINESS SERVICES (1.3%) 18,603,695
-------------
CAPITAL GOODS (0.2%)
MACHINERY
Solectron Corp.
Zero Coupon Conv. Sub. Note,
05/05/12 ....................... 4,575,000 3,248,250
-------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Delta Air Lines, Inc.
3.23% Conv., 06/15/03 .......... 2,160,000 2,073,600
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------- ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
LEISURE RELATED (0.1%)
Carnival Cruise Lines, Inc.
4.5% Conv. Sub. Note, 07/01/97 .. $ 980,000 $ 1,353,625
------------
RETAIL--GENERAL (0.1%)
Lowes Cos., Inc.
3.0% Conv., 07/22/03 ............. 890,000 1,056,875
------------
TOTAL CONSUMER CYCLICALS (0.3%) 4,484,100
------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.4%)
Integrated Health Services
5.75% Conv., 01/01/01 ............ 1,910,000 2,058,025
Omnicare, Inc.
5.75% Conv., 10/01/03 ............ 820,000 1,556,975
Sun Healthcare Group
6.0% Conv., 03/01/04 ............. 1,580,000 1,489,150
------------
5,104,150
------------
RETAIL--FOOD (0.1%)
Kroger Co.
6.375% Jr. Sub. Conv. Note,
12/01/99 ......................... 1,130,000 1,630,025
------------
TOTAL CONSUMER NONCYCLICALS (0.5%) 6,734,175
------------
CREDIT SENSITIVE
BANKS (0.7%)
Banco Centrale Hispano
Cayman Islands
8.25%, 06/15/04 .................. 9,375,000 9,882,844
------------
FINANCIAL SERVICES (1.1%)
Liberty Mutual
8.50%, 05/15/25 .................. 14,375,000 14,834,324
Medaphis Corp.
6.5% Conv., 01/01/00+ ............ 695,000 1,099,838
------------
15,934,162
------------
FOREIGN GOVERNMENT (2.0%)
Italy Global Bond
6.875%, 09/27/23 ................. 15,000,000 13,314,600
Province of Quebec
7.5%, 07/15/23 ................... 16,450,000 15,930,016
------------
29,244,616
------------
MORTGAGE RELATED (3.3%)
Federal National Mortgage
Association
6.0%, 06/01/09 ................... 49,000,000 47,591,250
------------
UTILITY--TELEPHONE (0.1%)
LDDS Communications, Inc.
5.0% Conv., 08/15/03 ............. 1,750,000 1,675,625
------------
U.S. GOVERNMENT (23.3%)
U.S. Treasury:
7.25% Note, 02/15/98 ............. 67,800,000 70,024,653
7.75% Note, 12/31/99 ............. 55,400,000 59,139,500
7.75% Note, 01/31/00 ............. 86,000,000 91,912,500
6.25% Note, 05/31/00 ............. 33,500,000 33,876,875
7.50% Note, 02/15/05 ............. 44,900,000 48,912,937
6.50% Note, 05/15/05 ............. 12,110,000 12,359,769
7.625% Bond, 02/15/25 ............ 14,025,000 15,821,952
------------
332,048,186
------------
TOTAL CREDIT SENSITIVE (30.5%) .. 436,376,683
------------
</TABLE>
B-42
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------- ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
ENERGY
OIL--DOMESTIC (0.1%)
Apache Corp.
6.0% Euro Conv., 01/15/02 ........ $ 1,310,000 $ 1,454,100
------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Amoco Canada
7.375% Conv. Sub. Deb., 09/01/13 1,425,000 1,795,500
------------
TOTAL ENERGY (0.2%) .............. 3,249,600
------------
TECHNOLOGY
ELECTRONICS (1.8%)
Altera Corp.
5.75% Conv. Sub. Note, 06/15/02 . 1,815,000 1,912,556
Arrow Electronics, Inc.
5.75% Conv., 10/15/02 ............ 1,825,000 2,780,844
Cypress Semiconductor
3.15% Conv., 03/15/01+ ........... 2,110,000 3,151,813
EMC Corp.
4.25% Conv., 01/01/01 ............ 3,245,000 4,328,019
General Instrument Corp.
5.0% Conv., 06/15/00 ............. 1,785,000 2,949,713
Integrated Device Technology, Inc.
5.5% Conv., 06/01/02 ............. 2,155,000 2,260,056
Lam Research Corp.
6.0% Conv. Sub. Deb., 05/01/03 .. 1,200,000 3,105,000
LSI Logic Corp.
5.5% Conv., 03/15/01+ ............ 645,000 2,090,606
Motorola, Inc.
Zero Coupon Conv., 09/27/13 ..... 3,120,000 2,554,500
------------
25,133,107
------------
TELECOMMUNICATIONS (1.2%)
Tele-Communications, Inc.
10.125%, 04/15/22 ................ 15,325,000 17,341,004
------------
TOTAL TECHNOLOGY (3.0%) .......... 42,474,111
------------
TOTAL LONG-TERM DEBT SECURITIES (36.1%)
(Amortized Cost $498,658,780) 516,570,614
------------
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Bank of California:
5.93%, due 07/12/95 .............. 2,000,000 1,996,376
5.93%, due 07/14/95 .............. 3,500,000 3,492,505
First Union Bank of N.C.
5.79%, due 10/13/95 .............. 12,000,000 11,796,160
SHORT-TERM DEBT SECURITIES (Continued):
Mitsubishi Bank Ltd.--N.Y.
5.84%, due 09/25/95 .............. $10,000,000 $ 9,856,667
------------
TOTAL BANKERS' ACCEPTANCES (1.9%) 27,141,708
------------
CERTIFICATES OF DEPOSIT
ABN Amro Holdings
6.39%, due 07/10/95 .............. 10,000,000 10,000,825
Sanwa Bank Ltd.
5.95%, due 07/06/95 .............. 10,000,000 9,999,839
------------
TOTAL CERTIFICATES OF DEPOSIT (1.4%) 20,000,664
------------
COMMERCIAL PAPER
Akzo America, Inc.
5.87%, due 09/19/95 .............. 15,000,000 14,806,666
ASCC Commercial Paper
5.88%, due 09/21/95 .............. 5,000,000 4,933,944
Beta Finance, Inc.:
5.82%, due 09/08/95 .............. 5,000,000 4,944,417
5.88%, due 09/18/95 .............. 12,000,000 11,847,267
Commerzbank
6.25%, due 07/03/95 .............. 12,300,000 12,295,729
Crosby Head Funding
5.98%, due 07/12/95 .............. 10,000,000 9,981,728
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------- ------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
General Electric Capital Corp.
5.58%, due 03/08/96 .............. 5,000,000 4,804,778
Goldman Sachs & Co.
5.84%, due 11/01/95 .............. 7,000,000 6,863,675
October Corp.
5.93%, due 09/08/95 .............. 3,000,000 2,966,650
Progress Receivables Funding
6.0%, due 07/17/95 ............... 2,000,000 1,994,667
Province of Quebec
5.87%, due 09/11/95 .............. 11,950,000 11,811,380
Sumitomo Corp. of America
6.0%, due 07/28/95 ............... 5,000,000 4,977,500
Thames Global Asset Funding
6.25%, due 07/14/95 .............. 10,000,000 9,977,430
Triple A Funding
6.0%, due 07/17/95 ............... 1,000,000 997,333
Unilever PLC
5.66%, due 12/11/95 .............. 7,500,000 7,308,815
------------
TOTAL COMMERCIAL PAPER (7.7%) 110,511,979
------------
TOTAL SHORT-TERM DEBT SECURITIES (11.0%)
(Amortized Cost $157,649,660) 157,654,351
------------
TOTAL INVESTMENTS (98.8%)
(Cost/Amortized Cost $1,350,108,305) 1,412,491,886
CASH AND RECEIVABLES
LESS LIABILITIES (1.2%) .......... 17,360,351
------------
NET ASSETS (100.0%) ............... $1,429,852,237
============
</TABLE>
- -------------------
* Non-income producing.
+ 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).
See Notes to Financial Statements.
B-43
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.1%)
Akzo Nobel N.V. .................. 1,500 $ 179,350
Bayer AG ......................... 500 124,272
Dainippon Ink & Chemical, Inc. .. 20,000 85,659
Hercules, Inc. ................... 260,000 12,675,000
Indo Gulf Fertilisers (GDR) ..... 50,000 102,500
Ishihara Sangyo Ltd.* ............ 15,000 44,599
Mitsui Petrochemical Industries . 8,000 60,598
Nippon Sanso Corp.* .............. 10,000 45,071
Riken Vinyl Industries Co. Ltd. . 1,000 8,377
Sanyo Chemicals .................. 9,000 81,765
Sekisui Chemical Co. Ltd. ........ 20,000 235,974
Showa Denko K.K.* ................ 12,000 35,396
Tessenderlo Chemie ............... 1,900 719,804
------------
14,398,365
------------
CHEMICALS--SPECIALTY (0.5%)
Morton International, Inc. ...... 100,000 2,925,000
SGL Carbon AG*+ .................. 12,800 572,036
------------
3,497,036
------------
METALS & MINING (1.2%)
Aluminum Co. of America .......... 160,000 8,020,000
Biron Corp. ...................... 80,000 25,018
Gwalia Consolidated .............. 95,800 132,094
Hoganas AB, Series B+ ............ 14,000 273,777
------------
8,450,889
------------
PAPER (2.1%)
Asia Pacific Resources
International Holdings Ltd.
(Class A)* ...................... 8,000 73,000
Enso-Gutzeit, Series R ........... 30,000 272,014
Grupo Industrial Durango (ADR)* . 12,000 96,000
International Paper Co. .......... 160,000 13,720,000
Mayr-Melnhof Karton Aktien+ ..... 2,000 115,785
Oji Paper ........................ 36,000 346,174
------------
14,622,973
------------
STEEL (0.2%)
Acerinox S.A. .................... 1,000 122,816
British Steel .................... 50,000 136,631
Hitachi Metals Ltd. .............. 14,000 157,088
Kawasaki Steel Corp.* ............ 15,000 49,201
Nippon Steel Corp. ............... 10,000 32,564
SSAB Svenskt Stal (Class B) ..... 20,000 234,115
------------
732,415
------------
TOTAL BASIC MATERIALS (6.1%) ... 41,701,678
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.9%)
Browning-Ferris Industries, Inc. 140,000 5,057,500
Kurita Water Industries .......... 6,000 154,327
Powerscreen International ........ 65,000 331,455
Tomra Systems .................... 120,000 471,224
------------
6,014,506
------------
COMMON STOCKS (Continued):
PRINTING, PUBLISHING &
BROADCASTING (1.4%)
Capital Cities ABC, Inc. ......... 80,000 $ 8,640,000
Central European Media
Enterprises Ltd.* ............... 2,200 32,725
Oriental Press Group ............. 200,000 80,772
Reed International ............... 5,000 70,245
Sunshine Broadcasting Network ... 27,000 37,997
Toppan Printing Co. .............. 14,000 183,352
United Newspapers PLC ............ 15,000 124,102
Ver Ned Uitgevers ................ 2,500 299,400
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Wolters Kluwer ................... 5,030 443,920
------------
9,912,513
------------
PROFESSIONAL SERVICES (1.4%)
Apcoa Parking AG* ................ 2,500 132,878
Automated Security Holdings* .... 51,041 39,792
First Financial Management Corp. 20,000 1,710,000
Randstad Holdings N.V. ........... 3,000 212,276
Reynolds & Reynolds Co. .......... 240,000 7,080,000
Secom Co. ........................ 1,000 62,887
Williams Holdings PLC ............ 40,000 200,791
------------
9,438,624
------------
TRUCKING, SHIPPING (0.1%)
Autostrade Conc E Costr-Priv .... 105,000 117,493
Brambles Industries Ltd. ......... 15,000 142,221
Irish Continental Group .......... 24,000 176,950
Western Bulk Shipping+ ........... 31,500 153,343
------------
590,007
------------
TOTAL BUSINESS SERVICES (3.8%) 25,955,650
------------
CAPITAL GOODS
BUILDING & CONSTRUCTION (0.3%)
BBC Brown Boveri ................. 350 362,310
Bufete Industrial S.A. (ADS) .... 2,700 43,875
Chloride Group ................... 230,000 71,359
Fukuda Corp. ..................... 16,000 165,182
Hopewell Holdings ................ 230,000 194,694
Kanamoto Co. Ltd. ................ 3,000 46,015
Kaneshita Construction ........... 18,000 237,862
Kyosei Rentemu Co. Ltd. .......... 1,000 13,569
Macmahon Holdings Ltd.* .......... 800,000 210,382
National House Industrial ........ 10,000 185,240
Oriental Construction Co.* ...... 1,000 21,002
Paul Y.-ITC Construction ......... 450,000 100,028
PS Corp. ......................... 11,000 198,572
Royal Plastics Group Ltd.*+ ..... 10,000 137,438
Sphinx-Gustavsberg* .............. 5,000 178,833
Toda Construction ................ 10,000 87,782
Wesco, Inc. ...................... 5,300 120,689
------------
2,374,832
------------
BUILDING MATERIALS
& FOREST PRODUCTS (0.1%)
C.I. Holdings BHD ................ 22,000 91,140
Fletcher Challenge ............... 30,000 84,237
Lafarge Canada ................... 3,000 57,888
Lafarge Corp. .................... 3,000 233,259
Macmillan Bloedel Ltd. ........... 5,000 70,084
</TABLE>
B-44
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Nichiha .......................... 4,000 $ 82,591
------------
619,199
------------
ELECTRICAL EQUIPMENT (1.7%)
General Electric Co. ............. 200,000 11,275,000
Kinden Corp. ..................... 6,000 111,852
Omron Corp. ...................... 10,000 191,139
Philips Electronics N.V. ......... 3,000 128,250
Vae Eisenbahnsys ................. 1,633 164,561
------------
11,870,802
------------
MACHINERY (2.3%)
Caterpillar, Inc. ................ 140,000 8,995,000
Construcciones Auxiliar Ferro ... 3,000 120,173
Deere & Co. ...................... 60,000 5,137,500
Fag Kugelfischer Georg Schaefer* 400 54,525
Fanuc Co. ........................ 600 25,910
Kalmar Industries AB+ ............ 12,000 185,088
Keppel Corp. ..................... 18,000 146,834
Keyence Corp. .................... 3,600 403,516
SMC Corp. ........................ 6,000 344,758
------------
15,413,304
------------
TOTAL CAPITAL GOODS (4.4%) ..... 30,278,137
------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Air New Zealand Limited 'B'
Shares* ......................... 50,000 145,410
British Airways .................. 40,000 262,205
KLM* ............................. 15,000 487,110
------------
894,725
------------
AUTO RELATED (0.1%)
Autoliv AB* ...................... 3,000 160,713
Autoliv AB (ADS)*+ ............... 3,000 160,125
Daikin Manufacturing ............. 6,000 90,614
Mabuchi Motor .................... 4,000 275,618
Minebea Co. ...................... 29,000 186,137
Pacific Dunlop ................... 10,000 21,038
------------
894,245
------------
AUTOS & TRUCKS (0.0%)
Mitsubishi Motors Corp. .......... 20,000 164,946
Volvo AB (Series B) .............. 5,500 104,904
------------
269,850
------------
FOOD SERVICES, LODGING (1.6%)
AAPC Limited ..................... 400,000 187,638
International Pizza Corp.* ...... 16,400 18,450
International Pizza Corp.--
Warrants* ....................... 16,400 2,050
Marriott International, Inc. .... 120,000 4,305,000
McDonald's Corp. ................. 160,000 6,260,000
------------
10,773,138
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.2%)
Atag Holdings .................... 1,300 101,806
Electrolux B ..................... 2,000 91,167
Industrie Natuzzi (ADR) .......... 10,000 331,250
Maax, Inc.* ...................... 25,800 206,648
Morishita Co. Ltd. ............... 6,000 49,625
Nippon Electric Glass ............ 15,100 242,298
Noritz Co. ....................... 5,000 $ 93,800
Philips Electronics .............. 3,500 148,231
Sharp Corp. ...................... 12,000 158,575
------------
1,423,400
------------
LEISURE RELATED (1.3%)
Cinar Films, Inc. (Class B)* .... 30,000 294,375
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
CUC International, Inc.* ......... 140,000 5,880,000
Disney (Walt) Co. ................ 30,000 1,668,750
Helicopter Line Ltd.* ............ 70,000 210,593
Nelvana Limited*+ ................ 18,900 254,596
Polygram ......................... 4,000 236,292
Skis Rossignol ................... 200 47,122
Skis Rossignol--Rights* .......... 200 0
------------
8,591,728
------------
RETAIL--GENERAL (2.9%)
Centros Comerciales Pryca S.A.* . 10,000 185,835
Circuit City Stores, Inc. ........ 60,000 1,897,500
Dollar General Corp. ............. 240,000 7,590,000
Eidensha Co. Ltd. ................ 11,000 149,254
Fu Hui Jewellery* ................ 400,000 23,262
Ishiguro Homa .................... 7,000 118,931
Matsuyadenki Co. Industries ..... 8,000 83,063
Nissen Corp. Ltd. ................ 2,700 81,234
Office Depot, Inc.* .............. 200,000 5,625,000
Rinascente ....................... 30,000 170,600
Sato Corp. ....................... 7,770 137,514
Shimamura Co. Ltd. ............... 5,000 176,981
Swank International Manufacturing 500,000 57,510
Swank International
Manufacturing--Warrants* ........ 80,000 103
The Talbots, Inc. ................ 82,800 3,291,300
Xebio Co. ........................ 3,000 102,649
------------
19,690,736
------------
TOTAL CONSUMER CYCLICALS (6.2%) 42,537,822
------------
CONSUMER NONCYCLICALS
BEVERAGES (1.5%)
Coca-Cola Co. .................... 160,000 10,200,000
Lion Nathan Ltd. ................. 80,000 158,313
Panamerican Beverages ............ 2,000 60,000
Takara Shuzo Co. ................. 6,000 45,378
------------
10,463,691
------------
DRUGS (2.0%)
Astra AB (Series A) .............. 15,000 463,754
Novo-Nordisk AS .................. 2,500 266,747
Pfizer, Inc. ..................... 120,000 11,085,000
Roche Holdings AG Genusscheine .. 80 515,502
Sankyo Co. ....................... 9,000 209,191
Santen Pharmaceutical Co. ........ 11,700 311,982
Takeda Chemical Industries ...... 9,000 118,931
Yamanouchi Pharmaceutical ........ 13,000 292,962
Zeneca Group PLC ................. 30,000 506,909
------------
13,770,978
------------
FOODS (1.4%)
IBP, Inc. ........................ 220,000 9,570,000
</TABLE>
B-45
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Shriram Industrial Enterprises
Ltd. (GDR)+ ..................... 24,000 $ 225,000
Shriram Industrial
Enterprises Ltd.--Warrants* .... 8,000 2,000
Viscofan Envoltura ............... 6,000 88,705
------------
9,885,705
------------
HOSPITAL SUPPLIES & SERVICES (2.8%)
Abbott Laboratories, Inc. ........ 100,000 4,050,000
Columbia HCA Healthcare Corp. ... 60,000 2,595,000
Medtronic, Inc. .................. 160,000 12,340,000
Tamro Group ...................... 20,000 89,031
Wright Medical Technology, Inc.--
Warrants* ....................... 206 33,990
------------
19,108,021
------------
RETAIL--FOOD (0.0%)
Familymart Co. ................... 1,700 85,246
York-Benimaru Co. ................ 1,000 37,756
------------
123,002
------------
SOAPS & TOILETRIES (2.3%)
Gillette Corp. ................... 360,000 16,065,000
------------
TOBACCO (3.4%)
Philip Morris Cos., Inc. ......... 240,000 17,850,000
UST, Inc. ........................ 160,000 4,760,000
------------
22,610,000
------------
TOTAL CONSUMER NONCYCLICALS (13.4%) 92,026,397
------------
CREDIT SENSITIVE
BANKS (4.6%)
Advance Bank Australia-- Rights* 40,000 13,931
Akita Bank ....................... 11,550 98,799
Allied Irish Bank ................ 45,000 212,340
Asahi Bank Ltd. .................. 12,000 128,134
Banco Latinoamericano de
Exportaciones, S.A. ............. 9,500 314,688
Banco Osorno Y La Union (ADR) ... 16,000 222,000
Banco Popular .................... 1,200 178,401
Bancomer B Local* ................ 50,000 14,640
Bancomer B Local--Rights* ........ 1,851 0
Bank of New York Co. ............. 440,000 17,765,000
Barclays Bank .................... 15,000 161,213
Citicorp ......................... 100,000 5,787,500
First Bank Systems ............... 120,000 4,920,000
Grupo Financiero Banorte
(Class C)* ...................... 18,000 23,328
Hock Hua Bank .................... 40,000 150,943
HSBC Holding PLC ................. 20,000 256,533
International Bank of Asia ...... 270,000 144,809
Mitsubishi Bank .................. 10,000 215,916
Overseas Chinese Bank ............ 10,000 110,912
Overseas Union Bank Ltd. ......... 22,000 138,533
Schweiz Bankverein ............... 270 95,667
Sparbanken Sverige AB+ ........... 34,000 287,399
Toho Bank ........................ 10,000 81,464
Yamanashi Chuo Bank .............. 10,000 112,088
------------
31,434,238
------------
FINANCIAL SERVICES (0.4%)
American Express Co. ............. 60,000 $ 2,107,500
Hong Leong Finance ............... 50,000 135,242
Invesco .......................... 70,000 236,669
JCG Holdings ..................... 60,000 39,546
Nichiei Co. Ltd. ................. 3,000 185,122
Promise Co. Ltd. ................. 7,200 300,726
------------
3,004,805
------------
INSURANCE (2.3%)
AFLAC, Inc. ...................... 200,000 8,750,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
General Re Corp. ................. 50,000 6,693,750
Koa Fire & Marine ................ 20,000 122,707
------------
15,566,457
------------
REAL ESTATE (0.1%)
Cheung Kong Holdings ............. 30,000 148,492
Chubu Sekiwa Real Estate ......... 4,000 42,475
Hong Kong Land Holding ........... 100,000 181,990
------------
372,957
------------
UTILITY--ELECTRIC (0.1%)
Enersis S.A. (ADR) ............... 9,000 265,500
EVN .............................. 2,000 279,900
Hidroelectrica del Cantabrico ... 2,000 61,119
Powergen PLC ..................... 15,000 115,391
Powergen PLC (ADR) ............... 1,250 39,219
Veba ............................. 200 78,533
------------
839,662
------------
UTILITY--GAS (0.9%)
ENRON Corp. ...................... 180,000 6,322,500
------------
UTILITY--TELEPHONE (0.1%)
Atlantic Tele-Network* ........... 3,000 24,375
Kon PTT Nederland+ ............... 6,000 215,762
Nippon Telegraph & Telephone
Corp. * ......................... 20 167,542
PT Indonesian Satellite (ADR) ... 5,000 191,250
Stet D Risp Port ................. 29,970 66,650
Stet-Societa Finanziaria
Telefonica (ADR) ................ 30,000 83,051
Tele Danmark AS, B Shares ........ 4,000 222,660
------------
971,290
------------
TOTAL CREDIT SENSITIVE (8.5%) .. 58,511,909
------------
ENERGY
OIL--DOMESTIC (1.5%)
Amoco Corp. ...................... 80,000 5,330,000
Orbit Oil and Gas* ............... 30,000 22,281
Phillips Petroleum Co. ........... 140,000 4,672,500
XCL Corp.* ....................... 200,000 162,500
------------
10,187,281
------------
OIL--INTERNATIONAL (0.1%)
Ampolex Ltd. ..................... 50,000 113,720
Canadian Occidental .............. 3,000 93,375
Norsk Hydro AS ................... 6,000 251,677
Repsol SA ........................ 7,000 220,276
Showa Shell Sekiyu ............... 5,750 55,088
YPF Sociedad Anonima (ADR) ...... 1,000 18,875
Yukong Ltd. (GDS)* ............... 838 14,559
</TABLE>
B-46
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Yukong Ltd. (GDR)*+ .............. 7,000 $ 73,500
------------
841,070
------------
OIL--SUPPLIES & CONSTRUCTION (0.0%)
Coflexip (ADR) ................... 11,000 279,125
Transamerican Refining--
Warrants* ....................... 8,418 27,359
------------
306,484
------------
TOTAL ENERGY (1.6%) ............. 11,334,835
------------
TECHNOLOGY
ELECTRONICS (4.7%)
Applied Materials, Inc.* ......... 80,000 6,930,000
ASM Lithography Holding N.V.* ... 9,000 313,765
Austria Mikro Systeme
International AG+ ............... 2,400 315,890
Disco Co. ........................ 5,000 145,124
Fuji Electronics Co. ............. 9,000 221,934
Futaba Corp. ..................... 4,000 181,228
GP Batteries International ...... 34,000 83,300
Hirose Electric Co. Ltd. ......... 1,000 61,943
Kyocera Corp. .................... 6,000 494,130
Linear Technology Corp. .......... 90,000 5,940,000
Molex, Inc. ...................... 140,000 5,425,000
Murata Manufacturing Co. Ltd. ... 2,000 75,748
Nikon Corp. ...................... 18,000 177,122
Rohm Co. Ltd. .................... 5,000 258,392
TDK Corp. ........................ 7,000 318,801
3Com Corp.* ...................... 80,000 5,360,000
Tokyo Electron ................... 10,000 342,163
Tokyo Ohka Kogyo ................. 7,000 190,785
Tyco International, Ltd. ......... 100,000 5,400,000
------------
32,235,325
------------
OFFICE EQUIPMENT (0.8%)
Canon, Inc. ...................... 20,000 325,645
Fujitsu Ltd. ..................... 2,000 19,940
Ricoh Elemex Corp. ............... 8,000 96,278
Sun Microsystems, Inc.* .......... 100,000 4,850,000
------------
5,291,863
------------
OFFICE EQUIPMENT SERVICES (1.7%)
Accugraph Corp. (Class A)* ...... 30,000 128,336
Getronics N.V. ................... 6,099 298,861
Oracle Corp.* .................... 160,000 6,180,000
Paychex, Inc. .................... 140,000 5,075,000
------------
11,682,197
------------
TELECOMMUNICATIONS (2.0%)
ADC Telecommunications, Inc.* ... 160,000 5,720,000
Andrew Corp.* .................... 100,000 5,787,500
BCE Mobile Communications, Inc.* 4,500 149,907
Bell Cablemedia PLC (ADR)* ...... 7,000 133,000
Cellular Communications Puerto
Rico, Inc.* ..................... 3,600 110,250
DDI Corporation .................. 38 304,879
Filtronic Comtek PLC* ............ 200,000 887,805
Mannesmann AG .................... 800 244,423
Nihon Dempa Kogyo ................ 15,000 433,603
Rogers Cantel Mobile
Communications, Inc.
(Class B)* ...................... 6,000 $ 144,173
Tokyo Broadcasting System ........ 17,000 242,700
------------
14,158,240
------------
TOTAL TECHNOLOGY (9.2%) ......... 63,367,625
------------
DIVERSIFIED
MISCELLANEOUS (0.6%)
Alba ............................. 2,000 103,241
Allied Signal, Inc. .............. 60,000 2,670,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (Continued):
Austral Enterprises BHD .......... 20,000 59,885
Crean (James) PLC--Units ......... 30,000 105,678
Hanson PLC ....................... 100,000 350,031
Indonesia Fund, Inc.* ............ 4,000 44,500
International UNP Holdings* ..... 143,000 54,144
International UNP Holdings--
Warrants*(c) .................... 125,000 10,922
Taiwan Fund, Inc. ................ 8,000 175,000
Taiwan Fund, Inc.--Rights* ...... 2,000 0
Tomkins PLC ...................... 50,000 178,993
------------
TOTAL DIVERSIFIED (0.6%) ........ 3,752,394
------------
TOTAL COMMON STOCKS (53.8%)
(Cost $306,830,027) ............. 369,466,447
------------
PREFERRED STOCKS:
CAPITAL GOODS (0.0%)
MACHINERY
Gea AG ........................... 120 38,529
------------
CONSUMER CYCLICALS (0.0%)
RETAIL-- GENERAL
Hach AG .......................... 50 23,719
------------
CREDIT SENSITIVE (0.0%)
INSURANCE
Marschollek Lauten Partners ..... 450 292,874
------------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Nokia Oy ......................... 12,000 702,878
------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $245,564) ................. 1,058,000
------------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (0.4%)
Buckeye Cellulos
10.25%, 05/15/01 ................ $ 500,000 497,500
G-I Holdings
Zero Coupon Sr. Disc. Note,
10/01/98 ........................ 1,000,000 670,000
Pioneer Americas Corp.
13.375%, 04/01/05+ .............. 500,000 515,000
Sherritt Gordon
9.75%, 04/01/03 ................. 1,000,000 970,000
------------
2,652,500
------------
</TABLE>
B-47
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
PAPER (0.7%)
Domtar, Inc.
12.0%, 04/15/01 .................. $ 750,000 $ 862,500
Repap New Brunswick:
9.875%, 07/15/00 ................. 500,000 505,000
10.625%, 04/15/05 ................ 500,000 505,000
Repap Wisconsin
9.25%, 02/01/02 .................. 1,000,000 967,500
Stone Container Corp.
9.875%, 02/01/01 ................. 1,000,000 991,250
Sweetheart Cup
10.5%, 09/01/03 .................. 500,000 495,000
Williamhouse Regency of Delaware
Inc.
11.5%, 06/15/05 .................. 500,000 497,500
------------
4,823,750
------------
STEEL (0.1%)
Algoma Steel
12.375%, 07/15/05 ................ 500,000 450,770
------------
TOTAL BASIC MATERIALS (1.2%) .... 7,927,020
------------
BUSINESS SERVICES
PRINTING, PUBLISHING
& BROADCASTING (0.1%)
American Media Operation
11.625%, 11/15/04 ................ 500,000 535,000
United States Banknote Corp.
10.375% Sr. Note, 06/01/02 ...... 450,000 369,000
------------
904,000
------------
TRUCKING, SHIPPING (0.2%)
Gearbulk Holding Ltd.
11.25%, 12/01/04 ................. 1,000,000 1,060,000
------------
TOTAL BUSINESS SERVICES (0.3%) .. 1,964,000
------------
CAPITAL GOODS
AEROSPACE (0.1%)
Rohr, Inc.
11.625%, 05/15/03 ................ 500,000 527,500
------------
BUILDING & CONSTRUCTION (0.1%)
Boskalis Westminster
5.25% Conv., 06/01/00 ............ 900,000 554,028
------------
MACHINERY (0.3%)
Primeco Corp.
12.75%, 03/01/05 ................. 1,000,000 1,020,000
Specialty Equipment
11.375%, 12/01/03 ................ 1,000,000 1,027,500
------------
2,047,500
------------
TOTAL CAPITAL GOODS (0.5%) ...... 3,129,028
------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.4%)
CMI Industries
9.5%, 10/01/03 ................... 1,000,000 915,000
Ithaca Industries
11.125%, 12/15/02 ................ 500,000 475,000
Tultex Corp.
10.625%, 03/15/05 ................ $1,000,000 $1,020,000
------------
2,410,000
------------
AUTO RELATED (0.1%)
JPS Automotive Products
11.125%, 06/15/01 ................ 1,000,000 985,000
------------
RETAIL--GENERAL (0.2%)
Lowes Cos., Inc.
3.0% Conv., 07/22/03 ............. 1,015,000 1,205,313
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
TOTAL CONSUMER CYCLICALS (0.7%) 4,600,313
------------
CONSUMER NONCYCLICALS
CONTAINERS (0.2%)
Calmar Spray Systems
14.0%, 02/15/99 .................. 1,000,000 1,020,000
Silgan Corp.
11.75% Deb., 06/15/02 ............ 400,000 418,000
------------
1,438,000
------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
National Medical Enterprises, Inc.
10.125%, 03/01/05 ................ 1,000,000 1,056,250
Thermoscan
13.5% Floating Rate,
08/15/01 (a)+ .................... 500,000 502,500
Wright Medical Technology, Inc.
10.75%, 07/01/00 ................. 500,000 502,500
------------
2,061,250
------------
RETAIL--FOOD (0.1%)
Ralphs Grocery Co.
10.45%, 06/15/04 ................. 500,000 500,000
------------
SOAPS & TOILETRIES (0.1%)
Revlon Worldwide
Zero Coupon, 03/15/98 ............ 1,000,000 692,500
------------
TOTAL CONSUMER NONCYCLICALS (0.7%) 4,691,750
------------
CREDIT SENSITIVE
BANKS (0.2%)
First Nationwide Holdings
12.25%, 05/15/01 ................. 1,000,000 1,060,000
------------
REAL ESTATE (0.2%)
HMH Properties, Inc.
9.5%, 05/15/05+ .................. 500,000 483,750
Scotsman Group
9.5%, 12/15/00 ................... 1,000,000 975,000
------------
1,458,750
------------
U.S. GOVERNMENT (27.5%)
U.S. Treasury:
7.25% Note, 02/15/98 ............. 31,450,000 32,481,937
7.125% Note, 09/30/99 ............ 16,000,000 16,664,992
7.75% Note, 12/31/99 ............. 16,780,000 17,912,650
6.75% Note, 04/30/00 ............. 21,500,000 22,158,437
7.5% Note, 02/15/05 .............. 26,000,000 28,323,750
6.5% Note, 05/15/05 .............. 10,695,000 10,915,584
7.5% Bond, 11/15/24 .............. 29,945,000 33,164,088
7.625% Bond, 02/15/25 ............ 24,830,000 28,011,344
------------
189,632,782
------------
TOTAL CREDIT SENSITIVE (27.9%) .. 192,151,532
------------
</TABLE>
B-48
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
ENERGY
OIL--DOMESTIC (0.1%)
Gulf Canada Resources
9.625%, 07/01/05 ................. $ 500,000 $ 497,500
WRT Energy Corp.
13.875%, 03/01/02 ................ 500,000 490,000
------------
987,500
------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Transamerican Refining
16.5%, 02/15/02 .................. 500,000 527,500
------------
TOTAL ENERGY (0.2%) .............. 1,515,000
------------
TECHNOLOGY
ELECTRONICS (0.7%)
General Instrument Corp.
5.0% Conv., 06/15/00 ............. 2,000,000 3,305,000
Panamsat L.P.
9.75% Sr. Secured Notes, 08/01/00 1,600,000 1,632,000
------------
4,937,000
------------
TELECOMMUNICATIONS (0.4%)
Bell Cablemedia
Zero Coupon, 07/15/04 (b) ........ 1,000,000 672,500
CF Cable TV, Inc.
11.625%, 02/15/05 ................ 500,000 530,000
Century Communications
9.5% Sr. Note, 03/01/05 .......... 500,000 496,250
Intermedia Communications
13.5%, 06/01/05+ ................. 500,000 502,500
Mobile Telecommunications
13.5%, 12/15/02 .................. 500,000 536,250
------------
2,737,500
------------
TOTAL TECHNOLOGY (1.1%) .......... 7,674,500
------------
DIVERSIFIED
MISCELLANEOUS (0.1%)
Brierley Investment Ltd.
9.0% Sub. Conv. Note, 06/30/98 .. 14,000 10,015
Day International, Inc.
11.125%, 06/01/05 ................ 750,000 753,750
------------
TOTAL DIVERSIFIED (0.1%) ......... 763,765
------------
TOTAL LONG-TERM DEBT SECURITIES (32.7%)
(Amortized Cost $213,694,325) ... 224,416,908
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------ ------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES (1.0%)
Mitsubishi Bank Ltd.--N.Y.
5.98% , due 07/21/95 ............. $ 3,100,000 $ 3,089,701
Union Bancorp Los Angeles
5.93%, due 07/31/95 .............. 3,500,000 3,482,704
------------
TOTAL BANKERS' ACCEPTANCES (1.0%) 6,572,405
------------
BANK NOTES (0.9%)
Banc One Milwaukee
5.98%, due 09/05/95 .............. 6,000,000 6,002,421
------------
COMMERCIAL PAPER
ASI Funding Corp.
5.98%, due 07/10/95 .............. 2,617,000 2,613,088
Bank of New York
5.95%, due 07/05/95 .............. 12,000,000 11,992,066
Commerzbank
6.25%, due 07/03/95 .............. 11,100,000 11,096,145
Dynamic Funding Corp.
6.03%, due 07/11/95 .............. 15,000,000 14,974,875
General Electric Financial Service
5.7%, due 09/15/95 ............... 2,000,000 1,975,427
October Corp:
5.97%, due 07/06/95 .............. 1,000,000 999,171
5.97%, due 08/15/95 .............. 5,356,000 5,316,031
Province of Quebec
5.95%, due 07/12/95 .............. 5,000,000 4,990,910
State Street Bank & Trust
6.0%, due 07/06/95 ............... 9,011,000 9,003,491
------------
TOTAL COMMERCIAL PAPER (9.1%) 62,961,204
------------
TIME DEPOSITS (1.7%)
Mitsubishi Bank Ltd.-- N.Y.
6.1875%, due 07/05/95 ............ 12,000,000 12,000,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (12.7%)
(Amortized Cost $87,534,249) .... 87,536,030
------------
TOTAL INVESTMENTS (99.3%)
(Cost/Amortized Cost $608,304,165) 682,477,385
CASH AND RECEIVABLES
LESS LIABILITIES (0.7%) .......... 4,520,484
------------
NET ASSETS (100.0%) ............... $686,997,869
============
</TABLE>
- --------------------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may only be resold to qualified
institutional buyers.
(a) Interest rate shown on floating rate securities represents the rate
at June 30, 1995.
(b) Debt security initially issued in zero coupon form which converts to
coupon form at a specific rate and date.
(c) Fair valued.
See Notes to Financial Statements.
B-49
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
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 thirteen Portfolios (Portfolios) currently in
operation: Money Market, Intermediate Government Securities, Quality Bond,
High Yield, Growth and Income, Equity Index, Common Stock, Global,
International, Aggressive Stock, Conservative Investors, Balanced 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 and International Portfolios commenced
operations on March 1, 1994 and April 3, 1995, respectively, at an initial
share value of $10.
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.
B-50
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
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.
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
B-51
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
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.
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 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>
B-52
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
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%
FIRST $500 OVER $1.5
MILLION NEXT $1 BILLION BILLION
---------------- ---------------- ----------------
International Portfolio ................................... .90% .85% .80%
</TABLE>
3. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the Intermediate Government Securities, Quality Bond, High Yield, Growth
and Income, Equity Index, Common Stock, Global, Aggressive Stock,
Conservative Investors, Balanced and Growth Investors Portfolios for the six
months ended June 30, 1995 and for the International Portfolio for the period
from April 3, 1995 (commencement of operations) through June 30, 1995, were
as follows:
<TABLE>
<CAPTION>
INTER-
MEDIATE
GOVERNMENT GROWTH AND
SECURITIES QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- -------------
<S> <C> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt $
securities ........................... -- $ 91,459,541 $172,658,408 $32,751,006
U.S. Government securities ............ 60,427,588 267,059,906 -- --
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... -- 51,684,452 153,045,658 11,231,549
U.S. Government securities ............ 45,697,242 268,910,573 -- --
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities ........................... $31,012,544 $1,058,547,663 $199,242,112 $4,543,994
U.S. Government securities ............ -- -- -- --
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 3,045,527 980,325,595 118,898,869 568,139
U.S. Government securities ............ -- -- -- --
</TABLE>
B-53
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities ........................... $1,260,233,034 $ 42,354,966 $859,171,398 $214,383,730
U.S. Government securities ............ -- 203,838,242 610,648,486 237,127,040
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 1,222,713,140 29,797,411 809,636,879 145,382,154
U.S. Government securities ............ -- 161,258,940 429,563,912 116,770,987
</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 six months ended June 30, 1995 are
summarized as follows:
<TABLE>
<CAPTION>
COMMON STOCK
PORTFOLIO
---------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
----------- --------------
<S> <C> <C>
Options outstanding--January 1, 1995 ............... 11,000 $ 4,512,479
Options written .................................... 194,600 51,964,460
Options terminated in closing purchase transactions (51,800) (13,359,265)
Options expired .................................... (49,200) (13,204,070)
Options exercised .................................. (37,600) (10,674,050)
----------- --------------
Options outstanding -- June 30, 1995 ............... 67,000 $ 19,239,554
=========== ==============
</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 June 30,
1995, the Global, International 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
Japanese Yen, expiring 09/18/95 ........... 833,500 $ 9,840,032 $ 9,837,130 $ (2,902)
Malaysian Ringgit, expiring 07/05/95 ..... 1,415 580,870 580,632 (238)
FOREIGN CURRENCY SALE CONTRACTS
Belgian Francs, expiring 07/11/95 ........ 22,178 783,706 781,733 1,973
British Pounds, expiring 09/18/95 ........ 11,700 17,926,155 18,270,720 (344,565)
Deutsche Marks, expiring 07/07/95-09/18/95 11,150 7,515,311 7,789,185 (273,874)
Finnish Markka, expiring 07/03/95 ........ 443 103,525 103,691 (166)
French Francs, expiring 07/03/95 .......... 1,578 325,615 325,464 151
Irish Punt, expiring 07/03/95 ............. 436 713,648 714,053 (405)
Japanese Yen, expiring 09/18/95 ........... 1,666,925 20,006,950 19,837,261 169,689
Netherland Guilders, expiring
07/03/95-09/18/95 ........................ 16,103 9,686,367 10,041,376 (355,009)
---------------
$(805,346)
===============
</TABLE>
B-54
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
INTERNATIONAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------- ---------- ------------- ---------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Japanese Yen, expiring 07/03/95-09/18/95 .. 22,373 $264,566 $264,269 $ (297)
Malaysian Ringgit, expiring 07/05/95 ...... 98 40,230 40,213 (17)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, expiring 09/18/95 .......... 114 178,022 181,379 (3,357)
Deutsche Marks, expiring 07/07/95-09/18/95 130 91,296 94,180 (2,884)
Japanese Yen, expiring 09/18/95 ............ 24,517 291,765 289,269 2,496
Netherland Guilders, expiring 09/18/95 .... 111 68,899 71,662 (2,763)
---------------
$(6,822)
===============
</TABLE>
<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
Japanese Yen, expiring 09/18/95 ............ 116,000 $1,369,459 $1,369,055 $ (404)
FOREIGN CURRENCY SALE CONTRACTS
Austrian Schillings, expiring 07/07/95 .... 2,089 214,553 214,677 (124)
Belgian Francs, expiring 07/11/95 .......... 7,755 274,044 273,354 690
British Pounds, expiring 07/03/95-09/18/95 1,248 1,916,485 1,951,295 (34,810)
Deutsche Marks, expiring 07/07/95-09/18/95 1,661 1,136,685 1,168,806 (32,121)
French Francs, expiring 07/03/95 ........... 1,715 353,869 353,705 164
Irish Punt, expiring 07/03/95 .............. 157 256,516 256,661 (145)
Japanese Yen, expiring 09/18/95 ............ 231,506 2,778,607 2,755,040 23,567
Netherland Guilders,
expiring 07/03/95-09/18/95 ................ 3,253 1,974,462 2,037,291 (62,829)
---------------
$(106,012)
===============
</TABLE>
As of June 30, 1995, 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 $ 34,581 $ 1,248,702 $ 2,260,091 $ 2,534,279
Aggregate gross unrealized depreciation (5,531) (30,168) (275,550) (846,129)
-------------- ------------- -------------- ------------
Net unrealized appreciation ............. $ 29,050 $ 1,218,534 $ 1,984,541 $ 1,688,150
============== ============= ============== ============
Federal income tax cost of investments . $306,334,770 $61,280,876 $142,968,103 $94,186,942
============== ============= ============== ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND
INCOME EQUITY INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation $ 4,878,098 $ 8,154,585 $ 819,820,068 $ 61,393,363
Aggregate gross unrealized depreciation (382,724) (674,662) (83,108,557) (24,959,918)
------------- ------------- -------------- --------------
Net unrealized appreciation ............. $ 4,495,374 $ 7,479,923 $ 736,711,511 $ 36,433,445
============= ============= ============== ==============
Federal income tax cost of investments . $56,271,842 $69,583,612 $3,612,136,562 $510,610,217
============= ============= ============== ==============
</TABLE>
B-55
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1995
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Aggregate gross unrealized appreciation $ 224,437 $ 435,557,754 $ 11,398,946 $ 82,244,100 $ 78,240,774
Aggregate gross unrealized depreciation (173,823) (47,771,129) (213,659) (21,508,941) (4,412,861)
--------------- -------------- -------------- -------------- --------------
Net unrealized appreciation ............. $ 50,614 $ 387,786,625 $ 11,185,287 $ 60,735,159 $ 73,827,913
=============== ============== ============== ============== ==============
Federal income tax cost of investments . $6,782,975 $1,780,825,738 $199,736,167 $1,351,756,727 $608,649,472
=============== ============== ============== ============== ==============
</TABLE>
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, Aggressive Stock, Conservative Investors, Balanced and Growth
Investors Portfolios had net capital loss carryforwards of $9,469,908,
$6,513,805, $1,059,564, $41,137,196, $6,422,411, $19,919,410 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 June 30, 1995, 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 thirteen classes, one class for each
Portfolio.
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994
------------ -------------- -------------- -------------
<S> <C> <C> <C> <C>
SHARES SOLD ..... 16,407,211 34,864,688 1,612,878 3,505,801
SHARES ISSUED IN
CONNECTION WITH
THE
SUBSTITUTION OF
THE SHORT-TERM
WORLD INCOME
PORTFOLIO ...... -- -- -- 254,893
SHARES ISSUED IN
REINVESTMENT
OF DIVIDENDS
AND
DISTRIBUTIONS . 880,750 1,126,391 184,745 764,978
--------------- -------------- --------------- --------------
TOTAL SHARES
ISSUED ......... 17,287,961 35,991,079 1,797,623 4,525,672
SHARES REDEEMED (18,704,450) (28,439,024) (844,448) (14,777,456)
--------------- -------------- --------------- --------------
NET INCREASE
(DECREASE) ..... (1,416,489) 7,552,055 953,175 (10,251,784)
=============== ============== =============== ==============
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<RESTUB>
<CAPTION>
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
- ---------------------------- ---------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994
- ------------- -------------- ------------- -------------
<C> <C> <C> <C>
871,905 3,600,969 2,644,808 3,096,529
-- -- -- --
481,774 931,997 468,681 687,436
- --------------- -------------- -------------- --------------
1,353,679 4,532,966 3,113,489 3,783,965
(265,932) (572,547) (1,223,254) (2,156,031)
- --------------- -------------- --------------- --------------
1,087,747 3,960,419 1,890,235 1,627,934
=============== ============== =============== ==============
</TABLE>
B-56
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
June 30, 1995
<TABLE>
<CAPTION>
GROWTH AND
INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
--------------------------- ------------------------------
FOR THE PERIOD
FROM MARCH 1,
SIX MONTHS YEAR ENDED SIX MONTHS 1994* TO
ENDED JUNE DECEMBER 31, ENDED JUNE DECEMBER 31,
30, 1995 1994 30, 1995 1994
------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C>
Shares sold ..... 2,484,934 3,211,395 4,529,681 3,972,324
Shares issued in
reinvestment
of dividends
and
distributions . 71,318 43,243 51,761 81,699
------------- ------------ ------------- ---------------
Total shares
issued ......... 2,556,252 3,254,638 4,581,442 4,054,023
Shares redeemed (168,296) (149,828) (1,585,758) (330,143)
------------- ------------ ------------- ---------------
Net increase ... 2,387,956 3,104,810 2,995,684 3,723,880
============= ============ ============= ===============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- --------------------------- -----------------
FOR THE PERIOD
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED FROM APRIL 3,
ENDED JUNE DECEMBER 31, ENDED JUNE DECEMBER 31, 1995* TO JUNE 30,
30, 1995 1994 30, 1995 1994 1995
------------- ------------ ------------- ------------ -----------------
<S> <C> <C> <C> <C> <C>
Shares sold ..... 13,752,409 35,758,326 9,100,489 21,053,323 671,744
Shares issued in
reinvestment
of dividends
and
distributions . 1,884,534 17,645,138 386,159 898,514 3,532
------------- ------------ ------------- ------------ -----------------
Total shares
issued ......... 15,636,943 53,403,464 9,486,648 21,951,837 675,276
Shares redeemed (4,893,970) (7,202,598) (2,324,385) (1,911,754) (618)
------------- ------------ ------------- ------------ -----------------
Net increase ... 10,742,973 46,200,866 7,162,263 20,040,083 674,658
============= ============ ============= ============ =================
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE
AGGRESSIVE STOCK INVESTORS
PORTFOLIO PORTFOLIO
------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
Shares sold ........ 12,999,185 23,071,977 2,401,226 6,795,540
Shares issued in
reinvestment
of dividends and
distributions ..... 67,416 69,084 509,020 760,857
--------------- -------------- --------------- --------------
Total shares issued 13,066,601 23,141,061 2,910,246 7,556,397
Shares redeemed ... (9,915,265) (12,173,721) (674,142) (730,909)
--------------- -------------- --------------- --------------
Net increase
(decrease) ........ 3,151,336 10,967,340 2,236,104 6,825,488
=============== ============== =============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
GROWTH
BALANCED INVESTORS
PORTFOLIO PORTFOLIO
------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1995 1994 1995 1994
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
Shares sold ........ 1,822,328 10,355,446 7,752,077 15,839,742
Shares issued in
reinvestment
of dividends and
distributions ..... 1,464,618 2,742,085 663,258 886,613
--------------- -------------- --------------- --------------
Total shares issued. 3,286,946 13,097,531 8,415,335 16,726,355
Shares redeemed .... (3,825,458) (5,497,701) (236,969) (960,533)
--------------- -------------- --------------- --------------
Net increase
(decrease) ........ (538,512) 7,599,830 8,178,366 15,765,822
=============== ============== =============== =============
</TABLE>
- ---------------
* Commencement of operations.
<PAGE>
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 June 30, 1995 are summarized as follows:
<TABLE>
<CAPTION>
Market
Portfolio Affiliates Cost Value
- ----------- ------------------------------------ ------------ ------------
<S> <C> <C> <C>
Common CBL & Associates Properties ........ $ 20,591,544 $ 21,001,913
Stock Chris Craft Industries, Inc. (Class B) 13,002,933 42,830,690
Essex Property Trust, Inc. ......... 7,083,100 6,615,625
Regency Realty Corp. ............... 14,600,607 13,067,900
------------ ------------
$ 55,278,184 $ 83,516,128
============ ============
Global Nelvana Limited .................... $ 1,348,650 $ 1,829,322
============ ============
Aggressive American Superconductor Corp. ...... $ 7,438,364 $ 7,568,175
Stock Global Marine, Inc. ................ 34,414,043 51,593,025
Healthwise of America, Inc. ........ 17,767,460 21,257,693
Nine West Group, Inc. .............. 62,360,597 80,369,350
Playboy Enterprises, Inc. (Class B). 6,184,224 6,149,588
Rowan Cos., Inc. ................... 46,544,552 44,864,625
Sun Healthcare Group, Inc. ......... 80,007,489 53,932,725
Xtra Corp. ......................... 47,134,901 44,571,125
------------ ------------
$301,851,630 $310,306,306
============ ============
Balanced Taco Cabana (Class A) .............. $ 11,321,992 $ 4,531,725
============ ============
</TABLE>
B-57
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
June 30, 1995
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(C)
MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ---------- ---------- ---------- ---------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .. $10.14 $10.12 $10.11 $10.13 $10.17 $10.14
------------ ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.29 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 .......... 0.29 0.41 0.30 0.36 0.61 0.82
------------ ---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS:
Dividends from net investment income ..... (0.30) (0.39) (0.29) (0.38) (0.65) (0.79)
------------ ---------- ---------- ---------- ---------- ----------
Total dividends ........................... (0.30) (0.39) (0.29) (0.38) (0.65) (0.79)
------------ ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............. $10.13 $10.14 $10.12 $10.11 $10.13 $10.17
============ ========== ========== ========== ========== ==========
Total return (d) ........................... 2.90% 4.02% 3.00% 3.57% 6.20% 8.22%
============ ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $310,906 $325,391 $248,460 $268,584 $302,395 $359,426
Ratio of expenses to average net assets ... 0.44%(b) 0.42% 0.42% 0.43% 0.43% 0.44%
Ratio of net investment income to average
net assets ................................ 5.77%(b) 4.01% 2.91% 3.63% 5.96% 7.85%
</TABLE>
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(E):
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED APRIL 1, 1991 TO
JUNE 30, --------------------------------- DECEMBER 31,
1995 1994 1993* 1992 1991
----------- --------- ---------- --------- -----------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .............. $ 8.87 $10.08 $10.53 $10.73 $10.00
------------ --------- ---------- ---------- ----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.29 0.65 0.59 0.60 0.52
Net realized and unrealized gain (loss) on
investments .......................................... 0.43 (1.08) 0.51 (0.02) 0.66
------------ --------- ---------- ---------- ----------------
Total from investment operations ..................... 0.72 (0.43) 1.10 0.58 1.18
------------ --------- ---------- ---------- ----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.28) (0.78) (0.68) (0.60) (0.34)
Distributions from realized gains .................... -- -- (0.87) (0.18) (0.11)
------------ --------- ---------- ---------- ----------------
Total dividends and distributions .................... (0.28) (0.78) (1.55) (0.78) (0.45)
------------ --------- ---------- ---------- ----------------
Net asset value, end of period ........................ $ 9.31 $ 8.87 $10.08 $10.53 $10.73
============ ========= ========== ========== ================
Total return (d) ...................................... 8.18% (4.37)% 10.58% 5.53% 12.10%
============ ========= ========== ========== ================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..................... $59,800 $48,518 $158,511 $293,587 $241,290
Ratio of expenses to average net assets ............... 0.58%(b) 0.56% 0.53% 0.52% 0.43%
Ratio of net investment income to average net assets . 6.36%(b) 6.75% 5.43% 5.63% 4.88%
Portfolio turnover rate ............................... 115% 133% 254% 316% 174%
</TABLE>
B-58
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS -- (Continued)
June 30, 1995
QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS OCTOBER 1, 1993
ENDED JUNE YEAR ENDED TO DECEMBER 31,
30, 1995 DECEMBER 31, 1994 1993
------------ ----------------- -----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (a) ................................... $8.72 $ 9.82 $ 10.00
------------ ----------------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................................................... 0.29 0.66 0.11
Net realized and unrealized gain (loss) on investments and foreign
currency transactions .................................................... 0.59 (1.16) (0.16)
------------ ----------------- -----------------
Total from investment operations .......................................... 0.88 (0.50) (0.05)
------------ ----------------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ...................................... (0.29) (0.55) (0.12)
Distributions in excess of realized gains ................................. -- -- (0.01)
Tax return of capital distributions ....................................... -- (0.05) --
------------ ----------------- -----------------
Total dividends and distributions ......................................... (0.29) (0.60) (0.13)
------------ ----------------- -----------------
Net asset value, end of period ............................................. $9.31 $ 8.72 $ 9.82
============ ================= =================
Total return (d) ........................................................... 10.27% (5.10)% (0.51)%
============ ================= =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......................................... $146,454 $127,575 $104,832
Ratio of expenses to average net assets .................................... 0.60%(b) 0.59% 0.69%(b)
Ratio of net investment income to average net assets ....................... 6.50%(b) 7.17% 4.62%(b)
Portfolio turnover rate .................................................... 291% 222% 77%
</TABLE>
HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------
1995 1994 1993* 1992 1991 1990
----------- --------- --------- --------- -------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .... $ 8.91 $10.08 $ 9.15 $ 8.96 $ 7.97 $ 9.14
------------ --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.48 0.89 0.94 0.89 0.89 1.04
Net realized and unrealized gain (loss) on
investments ................................ 0.47 (1.17) 1.10 0.19 0.99 (1.14)
------------ --------- --------- --------- --------- ---------
Total from investment operations ............ 0.95 (0.28) 2.04 1.08 1.88 (0.10)
------------ --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.46) (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 ........... (0.46) (0.89) (1.11) (0.89) (0.89) (1.07)
------------ --------- --------- --------- --------- ---------
Net asset value, end of period ............... $ 9.40 $8.91 $10.08 $ 9.15 $ 8.96 $ 7.97
============ ========= ========= ========= ========= =========
Total return (d) ............................. 10.81% (2.79)% 23.15% 12.31% 24.46% (1.10)%
============ ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $95,738 $73,895 $67,169 $47,687 $45,066 $36,569
Ratio of expenses to average net assets ..... 0.61%(b) 0.61% 0.63% 0.60% 0.61% 0.62%
Ratio of net investment income to average net
assets ...................................... 10.39%(b) 9.23% 9.52% 9.58% 10.31% 12.04%
Portfolio turnover rate ...................... 192% 248% 280% 177% 187% 53%
</TABLE>
B-59
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS -- (Continued)
June 30, 1995
GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS OCTOBER 1, 1993
ENDED JUNE YEAR ENDED TO DECEMBER 31,
30, 1995 DECEMBER 31, 1994 1993
------------ ----------------- -----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (a) ............... $ 9.70 $ 9.95 $ 10.00
------------ ----------------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.17 0.31 0.03
Net realized and unrealized gain (loss) on investments 0.96 (0.36) (0.06)
------------ ----------------- -----------------
Total from investment operations ...................... 1.13 (0.05) (0.03)
------------ ----------------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.15) (0.20) (0.02)
Dividends in excess of net investment income ......... -- -- (0.00)
Tax return of capital distributions ................... -- -- (0.00)
------------ ----------------- -----------------
Total dividends and distributions ..................... (0.15) (0.20) (0.02)
------------ ----------------- -----------------
Net asset value, end of period ......................... $ 10.68 $ 9.70 $ 9.95
============ ================= =================
Total return (d) ....................................... 11.75% (0.58)% (0.25)%
============ ================= =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................... $60,218 $31,522 $1,456
Ratio of expenses to average net assets ................ 0.64%(b) 0.78% 2.70%(b)
Ratio of net investment income to average net asset ... 3.37%(b) 3.13% 1.12%(b)
Portfolio turnover rate ................................ 33% 52% 48%
</TABLE>
EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE 30, MARCH 1, 1994 TO
1995 DECEMBER 31, 1994
--------------- -----------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) ............... $ 9.87 $10.00
--------------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.13 0.20
Net realized and unrealized gain (loss) on investments 1.80 (0.09)
--------------- -----------------
Total from investment operations ..................... 1.93 0.11
--------------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.10) (0.20)
Distributions of realized gains ...................... -- (0.03)
Distributions in excess of realized gains ............ -- (0.01)
--------------- -----------------
Total dividends and distributions .................... (0.10) (0.24)
--------------- -----------------
Net asset value, end of period ......................... $11.70 $ 9.87
=============== =================
Total return (d) ....................................... 19.71% (1.08)%
=============== =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................... $78,648 $36,748
Ratio of expenses to average net assets ................ 0.45%(b) 0.49%(b)
Ratio of net investment income to average net assets .. 2.37%(b) 2.42%(b)
Portfolio turnover rate ................................ 6% 7%
</TABLE>
B-60
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1995
COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ------------ ------------ ------------ ----------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .... $ 13.36 $ 14.65 $ 13.49 $ 14.18 $ 11.22 $ 12.87
------------ ------------ ------------ ------------ ------------ --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.11 0.20 0.23 0.24 0.32 0.21
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ............................. 2.37 (0.51) 3.10 0.20 3.91 (1.25)
------------ ------------- ------------ ------------ ------------ ---------
Total from investment operations ........... 2.48 (0.31) 3.33 0.44 4.23 (1.04)
------------ ------------- ------------ ------------ ------------ ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.11) (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 .......... (0.11) (0.98) (2.17) (1.13) (1.27) (0.61)
------------ ------------ ------------ ------------ ------------ ----------
Net asset value, end of period ............... $ 15.73 $ 13.36 $ 14.65 $ 13.49 $ 14.18 $ 11.22
============ ============ ============ ============ ============ ==========
Total return (d) ............................. 18.55% (2.14)% 24.84% 3.22% 37.90% (8.11)%
============ ============ ============ ============ ============ ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $4,249,836 $3,466,245 $3,125,128 $2,307,292 $2,126,402 $673,476
Ratio of expenses to average net assets ..... 0.39%(b) 0.38% 0.38% 0.38% 0.40% 0.44%
Ratio of net investment income to average net
assets ..................................... 1.53%(b) 1.40% 1.55% 1.73% 2.32% 1.72%
Portfolio turnover rate ...................... 27% 52% 82% 71% 90% 82%
</TABLE>
B-61
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS -- (Continued)
June 30, 1995
GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ---------- ---------- --------- --------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) . $ 13.87 $ 13.62 $ 11.41 $ 11.64 $ 9.76 $ 10.74
------------ ---------- ---------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................... 0.16 0.20 0.08 0.14 0.22 0.38
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ............................ 0.83 0.52 3.58 (0.20) 2.74 (1.03)
------------ ---------- ---------- --------- --------- ---------
Total from investment operations ........ 0.99 0.72 3.66 (0.06) 2.96 (0.65)
------------ ---------- ---------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .... (0.15) (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 ....... (0.15) (0.47) (1.45) (0.17) (1.08) (0.33)
------------ ---------- ---------- --------- --------- ---------
Net asset value, end of period ............ $ 14.71 $ 13.87 $ 13.62 $ 11.41 $ 11.64 $ 9.76
============ ========== ========== ========= ========= =========
Total return (d) .......................... 7.22% 5.23% 32.09% (0.50)% 30.54% (6.06)%
============ ========== ========== ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $552,732 $421,698 $141,257 $49,171 $39,487 $24,097
Ratio of expenses to average net assets .. 0.64%(b) 0.69% 0.84% 0.70% 0.75% 0.75%
Ratio of net investment income to average
net assets ............................... 2.30%(b) 1.41% 0.62% 1.20% 1.94% 3.67%
Portfolio turnover rate ................... 31% 71% 150% 216% 267% 502%
</TABLE>
INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
APRIL 3, 1995
TO JUNE 30,
1995
---------------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period (a) ............. $ 10.00
---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.06
Net realized and unrealized gain on investments .... 0.08
---------------
Total from investment operations ................... 0.14
---------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... (0.05)
Distributions of realized gains .................... --
---------------
Total dividends and distributions .................. (0.05)
---------------
Net asset value, end of period ....................... $ 10.09
===============
Total return (d) ..................................... 1.47%
===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................... $6,809
Ratio of expenses to average net assets .............. 1.19%(b)
Ratio of net investment income to average net assets 2.40%(b)
Portfolio turnover rate .............................. 17%
</TABLE>
B-62
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS -- (Continued)
June 30, 1995
AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ---------- ------------ --------- ---------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................... $ 30.63 $ 31.89 $ 29.81 $ 33.82 $ 19.37 $ 19.90
------------ --------- ---------- ----------- ---------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.04 0.04 0.09 0.17 0.12 0.16
Net realized and unrealized gain
(loss) on investments ................ 4.30 (1.26) 4.91 (1.25) 16.68 1.46
------------ --------- ------------ ------------ ---------- -------
Total from investment operations ..... 4.34 (1.22) 5.00 (1.08) 16.80 1.62
------------ --------- ------------ ------------ ---------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.04) (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) (0.04) (2.92) (2.93) (2.35) (2.15)
------------ --------- ------------ ------------ ---------- --------
Net asset value, end of period ......... $ 34.93 $ 30.63 $ 31.89 $ 29.81 $33.82 $19.37
============ ========= ============ ============ ========== ========
Total return (d) ....................... 14.16% (3.81)% 16.77% (3.16)% 86.87% 8.16%
============ ========= ============ ============ ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $2,199,391 $1,832,164 $1,557,332 $1,210,576 $959,257 $120,960
Ratio of expenses to average net assets 0.50%(b) 0.49% 0.49% 0.50% 0.51% 0.55%
Ratio of net investment income to
average net assets .................... 0.23%(b) 0.12% 0.28% 0.57% 0.40% 0.78%
Portfolio turnover rate ................ 64% 92% 89% 68% 117% 54%
</TABLE>
CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ---------- ---------- --------- --------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 10.15 $ 11.12 $ 10.94 $ 11.29 $ 10.23 $ 10.26
------------ ---------- ---------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................. 0.31 0.55 0.52 0.64 0.69 0.72
Net realized and unrealized gain
(loss) on investments ................. 0.90 (1.00) 0.65 (0.01) 1.28 (0.09)
------------ ---------- ---------- --------- --------- ---------
Total from investment operations ...... 1.21 (0.45) 1.17 0.63 1.97 0.63
------------ ---------- ---------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income . (0.30) (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 ..... (0.30) (0.52) (0.99) (0.98) (0.91) (0.66)
------------ ---------- ---------- --------- --------- ---------
Net asset value, end of period .......... $ 11.06 $ 10.15 $ 11.12 $ 10.94 $ 11.29 $ 10.23
============ ========== ========== ========= ========= =========
Total return (d) ........................ 12.01% (4.10)% 10.76% 5.64 % 19.80% 6.30 %
============ ========== ========== ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $214,046 $173,691 $114,418 $70,675 $50,279 $29,971
Ratio of expenses to average net assets 0.61%(b) 0.59% 0.60% 0.61% 0.64% 0.73%
Ratio of net investment income to
average net assets ..................... 5.77%(b) 5.22% 4.49% 5.77% 6.45% 7.06%
Portfolio turnover rate ................. 126% 228% 178% 136% 171% 88%
</TABLE>
B-63
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS -- (Continued)
June 30, 1995
BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ----------- ----------- ------------- ---------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .... $14.87 $16.67 $16.19 $18.48 $14.40 $15.16
------------ ------------ ------------ ------------ ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.26 0.45 0.50 0.56 0.60 0.78
Net realized and unrealized gain (loss) on
investments ................................ 1.21 (1.78) 1.46 (1.11) 5.23 (0.76)
------------ ------------ ------------ ------------ ---------- ----------
Total from investment operations ............ 1.47 (1.33) 1.96 (0.55) 5.83 0.02
------------ ------------ ------------ ------------ ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.26) (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 ........... (0.26) (0.47) (1.48) (1.74) (1.75) (0.78)
------------ ------------ ------------ ------------ ---------- ----------
Net asset value, end of period ............... $16.08 $14.87 $16.67 $16.19 $18.48 $14.40
============ ============ ============ ============ ========== ==========
Total return (d) ............................. 9.98% (8.02)% 12.28% (2.85)% 41.25% 0.25%
============ ============ ============ ============ ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $1,429,852 $1,329,820 $1,364,640 $1,076,670 $964,262 $286,432
Ratio of expenses to average net assets ..... 0.40%(b) 0.39% 0.39% 0.40% 0.41% 0.45%
Ratio of net investment income to average net
assets ...................................... 3.41%(b) 2.87% 2.99% 3.30% 3.60% 5.35%
Portfolio turnover rate ...................... 113% 115% 99% 91% 159% 119%
</TABLE>
GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------
1995 1994 1993* 1992 1991 1990
------------ ---------- ---------- --------- --------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 14.66 $ 15.61 $ 14.69 $ 15.17 $ 11.03 $ 10.33
------------ ---------- ---------- ---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.29 0.50 0.43 0.44 0.41 0.44
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ........................ 1.76 (0.98) 1.79 0.28 4.93 0.64
------------ ---------- ---------- ---------- --------- ---------
Total from investment operations ...... 2.05 (0.48) 2.22 0.72 5.34 1.08
------------ ---------- ---------- ---------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .. (0.27) (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 ..... (0.27) (0.47) (1.30) (1.20) (1.20) (0.38)
------------ ---------- ---------- ---------- --------- ---------
Net asset value, end of period .......... $ 16.44 $ 14.66 $ 15.61 $ 14.69 $ 15.17 $ 11.03
============ ========== ========== ========== ========= =========
Total return (d) ........................ 14.09% (3.15)% 15.26% 4.85% 48.83% 10.70%
============ ========== ========== ========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $686,998 $492,478 $278,467 $148,650 $84,338 $24,539
Ratio of expenses to average net assets 0.59%(b) 0.59% 0.62% 0.60% 0.66% 0.78%
Ratio of net investment income to
average net assets .................... 3.71%(b) 3.32% 2.71% 3.00% 3.03% 4.11%
Portfolio turnover rate ................. 56% 131% 118% 129% 139% 92%
</TABLE>
B-64
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
June 30, 1995
* 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.
(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
International Portfolio--April 3, 1995
(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.
B-65
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> MONEY
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 306,334,770
<INVESTMENTS-AT-VALUE> 306,363,820
<RECEIVABLES> 4,669,470
<ASSETS-OTHER> 26,308
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 311,059,598
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 153,626
<TOTAL-LIABILITIES> 153,626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 310,844,302
<SHARES-COMMON-STOCK> 30,679,491
<SHARES-COMMON-PRIOR> 32,095,980
<ACCUMULATED-NII-CURRENT> 32,620
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29,050
<NET-ASSETS> 310,905,972
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9,661,651
<OTHER-INCOME> 0
<EXPENSES-NET> 688,965
<NET-INVESTMENT-INCOME> 8,972,686
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 8,895
<NET-CHANGE-FROM-OPS> 8,981,581
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8,925,435)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,407,211
<NUMBER-OF-SHARES-REDEEMED> (18,704,450)
<SHARES-REINVESTED> 880,750
<NET-CHANGE-IN-ASSETS> (14,485,024)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (14,631)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 627,178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 688,965
<AVERAGE-NET-ASSETS> 313,582,381
<PER-SHARE-NAV-BEGIN> 10.14
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.30)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.13
<EXPENSE-RATIO> 0.44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INTER
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 61,280,876
<INVESTMENTS-AT-VALUE> 62,499,410
<RECEIVABLES> 370,543
<ASSETS-OTHER> 46,008
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 62,915,961
<PAYABLE-FOR-SECURITIES> 3,072,440
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,464
<TOTAL-LIABILITIES> 3,115,904
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,631,172
<SHARES-COMMON-STOCK> 6,425,123
<SHARES-COMMON-PRIOR> 5,471,948
<ACCUMULATED-NII-CURRENT> 6,929
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (10,056,578)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,218,534
<NET-ASSETS> 59,800,057
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,863,549
<OTHER-INCOME> 0
<EXPENSES-NET> 155,631
<NET-INVESTMENT-INCOME> 1,707,918
<REALIZED-GAINS-CURRENT> 382,508
<APPREC-INCREASE-CURRENT> 2,150,562
<NET-CHANGE-FROM-OPS> 4,240,988
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,697,602)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,612,878
<NUMBER-OF-SHARES-REDEEMED> (844,448)
<SHARES-REINVESTED> 184,745
<NET-CHANGE-IN-ASSETS> 11,282,193
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (10,439,086)
<OVERDISTRIB-NII-PRIOR> (3,387)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 134,839
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 155,631
<AVERAGE-NET-ASSETS> 54,171,587
<PER-SHARE-NAV-BEGIN> 8.87
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.43
<PER-SHARE-DIVIDEND> (0.28)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.31
<EXPENSE-RATIO> 0.58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> QUALITY
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 142,968,103
<INVESTMENTS-AT-VALUE> 144,952,644
<RECEIVABLES> 2,168,039
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 147,120,683
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 666,637
<TOTAL-LIABILITIES> 666,637
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 153,012,187
<SHARES-COMMON-STOCK> 15,722,543
<SHARES-COMMON-PRIOR> 14,634,796
<ACCUMULATED-NII-CURRENT> 707,869
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (9,250,551)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,984,541
<NET-ASSETS> 146,454,046
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,819,872
<OTHER-INCOME> 0
<EXPENSES-NET> 405,073
<NET-INVESTMENT-INCOME> 4,414,799
<REALIZED-GAINS-CURRENT> 820,844
<APPREC-INCREASE-CURRENT> 8,161,799
<NET-CHANGE-FROM-OPS> 13,397,442
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,390,812)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 871,905
<NUMBER-OF-SHARES-REDEEMED> (265,932)
<SHARES-REINVESTED> 481,774
<NET-CHANGE-IN-ASSETS> 18,878,577
<ACCUMULATED-NII-PRIOR> 683,882
<ACCUMULATED-GAINS-PRIOR> (10,071,395)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 375,078
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 405,073
<AVERAGE-NET-ASSETS> 136,881,515
<PER-SHARE-NAV-BEGIN> 8.72
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.59
<PER-SHARE-DIVIDEND> (0.29)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.31
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> HIGH
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 94,082,884
<INVESTMENTS-AT-VALUE> 95,875,092
<RECEIVABLES> 4,383,747
<ASSETS-OTHER> 1,568,399
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 101,827,238
<PAYABLE-FOR-SECURITIES> 6,026,347
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 62,650
<TOTAL-LIABILITIES> 6,088,997
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 97,225,035
<SHARES-COMMON-STOCK> 10,183,011
<SHARES-COMMON-PRIOR> 8,292,776
<ACCUMULATED-NII-CURRENT> 21,330
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,300,332)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,792,208
<NET-ASSETS> 95,738,241
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,620,481
<OTHER-INCOME> 0
<EXPENSES-NET> 254,524
<NET-INVESTMENT-INCOME> 4,365,957
<REALIZED-GAINS-CURRENT> (1,537,911)
<APPREC-INCREASE-CURRENT> 5,805,155
<NET-CHANGE-FROM-OPS> 8,633,201
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,338,269)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,644,808
<NUMBER-OF-SHARES-REDEEMED> (1,223,254)
<SHARES-REINVESTED> 468,681
<NET-CHANGE-IN-ASSETS> 21,843,612
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,762,421)
<OVERDISTRIB-NII-PRIOR> (6,358)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 231,783
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 254,524
<AVERAGE-NET-ASSETS> 84,708,814
<PER-SHARE-NAV-BEGIN> 8.91
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 0.47
<PER-SHARE-DIVIDEND> (0.46)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.40
<EXPENSE-RATIO> 0.61
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> GROWTH
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 56,259,714
<INVESTMENTS-AT-VALUE> 60,767,216
<RECEIVABLES> 232,896
<ASSETS-OTHER> 117,833
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,117,945
<PAYABLE-FOR-SECURITIES> 856,400
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,601
<TOTAL-LIABILITIES> 900,001
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 56,478,539
<SHARES-COMMON-STOCK> 5,639,082
<SHARES-COMMON-PRIOR> 3,251,126
<ACCUMULATED-NII-CURRENT> 9,857
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (777,954)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,507,502
<NET-ASSETS> 60,217,944
<DIVIDEND-INCOME> 484,403
<INTEREST-INCOME> 413,835
<OTHER-INCOME> 0
<EXPENSES-NET> 143,484
<NET-INVESTMENT-INCOME> 754,754
<REALIZED-GAINS-CURRENT> (357,718)
<APPREC-INCREASE-CURRENT> 4,747,554
<NET-CHANGE-FROM-OPS> 5,144,590
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (744,828)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,484,934
<NUMBER-OF-SHARES-REDEEMED> (168,296)
<SHARES-REINVESTED> 71,318
<NET-CHANGE-IN-ASSETS> 28,695,573
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (420,236)
<OVERDISTRIB-NII-PRIOR> (69)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 123,117
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 143,484
<AVERAGE-NET-ASSETS> 45,115,237
<PER-SHARE-NAV-BEGIN> 9.70
<PER-SHARE-NII> 0.17
<PER-SHARE-GAIN-APPREC> 0.96
<PER-SHARE-DIVIDEND> (0.15)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.68
<EXPENSE-RATIO> 0.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> EQUITY
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 69,843,336
<INVESTMENTS-AT-VALUE> 77,423,535
<RECEIVABLES> 215,892
<ASSETS-OTHER> 1,138,167
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 78,777,594
<PAYABLE-FOR-SECURITIES> 97,284
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,289
<TOTAL-LIABILITIES> 129,573
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 70,657,938
<SHARES-COMMON-STOCK> 6,719,564
<SHARES-COMMON-PRIOR> 3,723,880
<ACCUMULATED-NII-CURRENT> 15,183
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<NAME> GLOBAL
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<NAME> INTERNATIONAL
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<NAME> AGGRESSIVE
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<NAME> CONSERV
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<NAME> BALANCED
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<NAME> GROWTHINV
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