THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996 (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--$351,153,075;
Intermediate Government Securities
Portfolio--$86,180,495; Quality Bond
Portfolio--$158,360,796; High Yield
Portfolio--$149,604,662; Growth and Income
Portfolio--$140,580,153; Equity Index
Portfolio--$255,380,065; Common Stock
Portfolio--$4,580,360,035; Global
Portfolio--$751,523,111; International
Portfolio--$99,443,306; Aggressive Stock
Portfolio--$2,886,487,158; Conservative
Investors Portfolio--$269,888,906;
Balanced Portfolio--$1,495,521,042; Growth
Investors Portfolio--$1,061,575,397)
(Notes 1 and 3) ........................... $351,157,366 $ 86,356,694 $156,999,854 $152,775,213 $155,249,599
Cash ....................................... -- 108,444 3,101,575 93,931 369,527
Foreign cash ............................... -- -- -- -- --
Receivable for securities sold ............. -- 5,906,809 12,131,080 25,269,472 320,146
Deposits received for securities lending .. -- 9,203,925 5,034,750 -- 13,718
Receivable from Separate Accounts for Trust
shares sold ............................... -- 232,647 206,606 1,217,144 1,365,391
Unrealized appreciation of forward currency
contracts (Notes 1 and 3) ................. -- -- -- -- --
Variation margin receivable on futures
contracts ................................. -- -- -- -- --
Dividends, interest and other receivables .. 416,907 616,268 2,314,364 2,727,939 471,145
-------------- -------------- -------------- -------------- --------------
Total assets ............................. 351,574,273 102,424,787 179,788,229 182,083,699 157,789,526
-------------- -------------- -------------- -------------- --------------
LIABILITIES:
Options written at value (Premiums
received: Common Stock
Portfolio--$60,957,930) (Notes 1 and 3) .. -- -- -- -- --
Payable to custodian ....................... 101,439 -- -- -- --
Payable for securities purchased ........... -- 15,195,240 7,309,577 31,186,988 2,103,319
Payable for securities loaned .............. -- 9,203,925 5,034,750 -- 13,718
Payable to Separate Accounts for Trust
shares redeemed ........................... 342,350 -- -- -- --
Unrealized depreciation of forward currency
contracts (Notes 1 and 3) ................. -- -- 58,267 -- --
Investment advisory fees payable ........... 101,014 29,341 69,613 61,872 63,612
Trustees' fees payable ..................... 22,762 4,421 2,990 4,005 1,570
Accrued expenses ........................... 20,589 6,002 14,689 14,938 11,658
-------------- -------------- -------------- -------------- --------------
Total liabilities ........................ 588,154 24,438,929 12,489,886 31,267,803 2,193,877
-------------- -------------- -------------- -------------- --------------
NET ASSETS ................................. $350,986,119 $ 77,985,858 $167,298,343 $150,815,896 $155,595,649
============== ============== ============== ============== ==============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ........................... $350,949,902 $ 87,909,233 $175,230,475 $147,557,971 $141,073,204
Accumulated undistributed
(overdistributed) net investment income . 31,926 8,595 (45,069) (238,919) (1,136)
Accumulated undistributed net realized
gain (loss) .............................. -- (10,108,169) (6,468,065) 326,293 (145,865)
Unrealized appreciation (depreciation) of
investments and foreign currency
denominated assets and liabilities ...... 4,291 176,199 (1,418,998) 3,170,551 14,669,446
-------------- -------------- -------------- -------------- --------------
NET ASSETS ................................. $350,986,119 $ 77,985,858 $167,298,343 $150,815,896 $155,595,649
============== ============== ============== ============== ==============
Shares outstanding (Note 4) ................ 34,592,854 8,476,155 18,099,803 15,295,535 12,823,591
============== ============== ============== ============== ==============
Net asset value, offering and redemption
price per share (Note 1) .................. $ 10.15 $ 9.20 $ 9.24 $ 9.86 $ 12.13
============== ============== ============== ============== ==============
</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>
$293,843,714 $5,721,912,115 $856,887,799 $104,719,710 $3,449,725,462 $270,654,964 $1,554,556,709 $1,101,115,623
94,241 323,303 693,157 11,601 93,116 1,281,999 1,572,225 1,953,318
-- -- 4,628,206 645,352 -- 2,615 658,013 3,105,551
-- 43,785,482 9,505,465 1,062,759 54,349,750 670,234 8,133,659 26,150,831
496,300 190,604,540 56,939,966 4,392,522 93,633,100 20,917,527 101,013,188 57,521,801
2,532,043 11,440,233 2,927,315 130,614 14,210,587 -- 1,304,666 6,101,882
-- -- 766,055 80,696 -- 102 1,053 --
42,425 -- -- -- -- -- -- --
429,207 10,269,726 2,136,350 158,114 1,116,614 2,788,232 14,797,137 6,006,004
- --------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
297,437,930 5,978,335,399 934,484,313 111,201,368 3,613,128,629 296,315,673 1,682,036,650 1,201,955,010
- --------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
-- 55,640,600 -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- 47,814,127 11,110,520 1,770,893 21,478,107 545,209 7,850,653 19,995,995
496,300 190,604,540 56,939,966 4,392,522 93,633,100 20,917,527 101,013,188 57,521,801
-- -- -- -- -- 1,676,348 -- --
-- -- -- -- -- -- -- 371,266
77,110 1,542,297 348,568 67,789 1,217,049 115,138 442,658 445,784
2,711 171,173 12,860 624 63,995 5,226 47,426 16,884
38,588 275,007 110,238 7,072 148,245 10,782 62,535 36,988
- --------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
614,709 296,047,744 68,522,152 6,238,900 116,540,496 23,270,230 109,416,460 78,388,718
- --------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
$296,823,221 $5,682,287,655 $865,962,161 $104,962,468 $3,496,588,133 $273,045,443 $1,572,620,190 $1,123,566,292
=============== ============== ============== =============== ============== ============== ============== ==============
$258,420,653 $4,557,201,213 $760,625,416 $ 99,660,749 $2,934,385,801 $272,253,474 $1,514,324,824 $1,084,432,815
(2,752) 8,225,510 (1,329,897) (91,584) (15,869) 55,279 215,504 (389,293)
(104,354) (30,003,943) 537,188 37,866 (1,020,103) (29,438) (958,243) 344,846
38,509,674 1,146,864,875 106,129,454 5,355,437 563,238,304 766,128 59,038,105 39,177,924
- --------------- -------------- -------------- --------------- -------------- -------------- -------------- --------------
$296,823,221 $5,682,287,655 $865,962,161 $104,962,468 $3,496,588,133 $273,045,443 $1,572,620,190 $1,123,566,292
=============== ============== ============== =============== ============== ============== ============== ==============
20,834,772 333,735,561 52,622,055 9,035,565 95,479,396 24,941,676 97,909,914 68,386,499
=============== ============== ============== =============== ============== ============== ============== ==============
$ 14.25 $ 17.03 $ 16.46 $ 11.62 $ 36.62 $ 10.95 $ 16.06 $ 16.43
=============== ============== ============== =============== ============== ============== ============== ==============
</TABLE>
B-2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 (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 $1,389,472 and
$1,315,486 from affiliated companies
for the Common Stock and Aggressive
Stock Portfolios, respectively) ....... $ -- $ -- $ -- $ -- $1,294,542
Interest ................................ 9,823,815 2,346,789 5,256,271 6,994,802 491,650
-------------- -------------- -------------- ------------- ------------
Total income ........................... 9,823,815 2,346,789 5,256,271 6,994,802 1,786,192
-------------- -------------- -------------- ------------- ------------
Expenses (Note 2):
Investment advisory fee ................. 712,038 187,083 446,386 367,345 344,462
Custody fees ............................ 8,557 14,237 10,299 14,172 4,542
Printing and mailing expenses ........... 24,911 5,201 11,315 9,216 8,486
Professional fees ....................... 4,832 1,009 2,195 1,788 1,646
SEC registration fees ................... 2,494 109 217 109 542
Trustees' fees .......................... 5,748 1,200 2,604 2,127 1,960
Miscellaneous ........................... 5,065 2,847 3,539 3,161 2,910
-------------- -------------- -------------- ------------- ------------
Total expenses ......................... 763,645 211,686 476,555 397,918 364,548
-------------- -------------- -------------- ------------- ------------
NET INVESTMENT INCOME ..................... 9,060,170 2,135,103 4,779,716 6,596,884 1,421,644
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 3):
Realized Gain (Loss):
On securities (including $1,077,305 and
$1,484,809 from affiliated companies
for the Common Stock and Aggressive
Stock Portfolios, respectively) ....... -- (730,440) (805,696) 7,182,086 3,624,373
On options written ...................... -- -- -- -- --
On foreign currency transactions ....... -- -- 160,871 -- --
On futures contracts .................... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Realized gain (loss)--net ................ -- (730,440) (644,825) 7,182,086 3,624,373
-------------- -------------- -------------- ------------- ------------
Change in Unrealized
Appreciation/Depreciation:
On securities ........................... (161,116) (1,470,778) (5,505,857) 1,075,442 3,560,795
On options written ...................... -- -- -- -- --
On foreign currency transactions ....... -- -- (87,291) -- --
On futures contracts .................... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Unrealized appreciation/depreciation--net (161,116) (1,470,778) (5,593,148) 1,075,442 3,560,795
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET . (161,116) (2,201,218) (6,237,973) 8,257,528 7,185,168
-------------- -------------- -------------- ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................... $8,899,054 $ (66,115) $(1,458,257) $14,854,412 $8,606,812
============== ============== ============== ============= ============
</TABLE>
- ------------
* Net of foreign taxes withheld on dividends of $20,343, $355,668,
$551,977, $78,180, $27,392, $218,055 and $175,105 for the Equity Index,
Common Stock, Global, International, Conservative Investors, Balanced
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>
$ 2,535,042 $ 33,362,471 $ 5,331,269 $ 519,711 $ 3,001,122 $ 575,842 $ 5,643,100 $ 4,895,888
234,316 2,155,177 2,766,680 310,513 8,222,289 6,580,450 21,220,208 10,936,096
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
2,769,358 35,517,648 8,097,949 830,224 11,223,411 7,156,292 26,863,308 15,831,984
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
406,343 9,448,391 2,037,276 298,675 7,136,116 743,243 2,855,404 2,629,107
32,567 59,115 174,489 23,009 24,314 7,040 34,022 54,789
15,603 369,015 53,381 4,289 201,234 18,706 108,405 69,624
3,027 71,579 10,355 832 41,577 3,628 21,028 13,505
976 -- 2,819 -- -- 217 -- 3,361
3,603 85,179 12,322 991 49,486 4,318 25,020 16,072
3,182 37,473 7,071 2,480 21,298 4,122 14,062 8,176
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
465,301 10,070,752 2,297,713 330,276 7,474,025 781,274 3,057,941 2,794,634
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
2,304,057 25,446,896 5,800,236 499,948 3,749,386 6,375,018 23,805,367 13,037,350
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
495,202 191,415,882 21,433,750 1,139,905 425,971,323 4,460,325 102,138,202 112,744,701
-- 64,761,774 -- -- -- -- -- --
-- (5,202) 1,806,070 110,824 -- (28,512) (143,934) 375,280
474,705 -- -- -- -- -- -- --
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
969,907 256,172,454 23,239,820 1,250,729 425,971,323 4,431,813 101,994,268 113,119,981
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
17,438,195 166,133,232 29,976,694 4,351,984 50,076,496 (13,662,420) (61,793,821) (78,866,977)
-- (8,055,952) -- -- -- -- -- --
-- (4,711) 1,175,474 58,948 -- 70 2,438 (307,098)
42,225 -- -- -- -- -- -- --
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
17,480,420 158,072,569 31,152,168 4,410,932 50,076,496 (13,662,350) (61,791,383) (79,174,075)
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
18,450,327 414,245,023 54,391,988 5,661,661 476,047,819 (9,230,537) 40,202,885 33,945,906
- -------------- -------------- ------------- --------------- -------------- -------------- -------------- --------------
$20,754,384 $439,691,919 $60,192,224 $6,161,609 $479,797,205 $ (2,855,519) $ 64,008,252 $ 46,983,256
============== ============== ============= =============== ============== ============== ============== ==============
</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 30, DECEMBER 31,
1996 1995 1996 1995
--------------- --------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ............................... $ 9,060,170 $ 18,312,330 $ 2,135,103 $ 3,659,738
Realized gain (loss)--net ........................... -- -- (730,440) 1,061,357
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated assets
and liabilities--net ............................... (161,116) 145,252 (1,470,778) 2,579,005
--------------- --------------- -------------- --------------
Net increase (decrease) in net assets from
operations ......................................... 8,899,054 18,457,582 (66,115) 7,300,100
--------------- --------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Dividends from net investment income ................ (9,126,051) (18,199,892) (2,149,285) (3,633,574)
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 ...................................... (9,126,051) (18,199,892) (2,149,285) (3,633,574)
--------------- --------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ......................................... 208,799,568 394,575,427 17,634,477 29,533,754
Shares issued in reinvestment of dividends and
distributions ...................................... 9,126,051 18,199,892 2,149,285 3,633,574
Shares redeemed ..................................... (253,403,449) (351,733,059) (11,362,329) (13,571,893)
--------------- --------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions ................................. (35,477,830) 61,042,260 8,421,433 19,595,435
--------------- --------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS .................... (35,704,827) 61,299,950 6,206,033 23,261,961
NET ASSETS, BEGINNING OF PERIOD ...................... 386,690,946 325,390,996 71,779,825 48,517,864
--------------- --------------- -------------- --------------
NET ASSETS, END OF PERIOD* ........................... $ 350,986,119 $ 386,690,946 $ 77,985,858 $ 71,779,825
=============== =============== ============== ==============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $31,926 and $97,807 for the Money Market Portfolio and $8,595
and $22,777 for the Intermediate Government Securities Portfolio and
$(45,069) and $63,771 for the Quality Bond Portfolio and $(238,919) and
$22,557 for the High Yield Portfolio and $(1,136) and $10,278 for the
Growth and Income Portfolio and $(2,752) and $(851) for the Equity Index
Portfolio, as of June 30, 1996 and December 31, 1995, respectively.
See Notes to Financial Statements.
B-5
<PAGE>
<TABLE>
<CAPTION>
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO GROWTH AND INCOME PORTFOLIO EQUITY INDEX 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,
1996 1995 1996 1995 1996 1995 1996 1995
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 4,779,716 $ 8,846,857 $ 6,596,884 $ 9,874,042 $ 1,421,644 $ 1,929,904 $ 2,304,057 $ 1,847,863
(644,825) 3,312,031 7,182,086 1,037,899 3,624,373 (78,675) 969,907 1,143,375
(5,593,148) 10,351,408 1,075,442 6,108,056 3,560,795 11,348,703 17,480,420 21,464,214
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(1,458,257) 22,510,296 14,854,412 17,019,997 8,606,812 13,199,932 20,754,384 24,455,452
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(4,888,556) (8,729,254) (6,858,360) (9,874,042) (1,433,058) (1,919,557) (2,305,958) (1,841,475)
-- -- -- (385,462) -- -- -- --
-- -- (5,727,762) -- (3,271,327) -- (950,271) (1,143,375)
-- -- -- -- -- -- -- (84,099)
-- -- -- -- -- -- -- (123)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
(4,888,556) (8,729,254) (12,586,122) (10,259,504) (4,704,385) (1,919,557) (3,256,229) (3,069,072)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
16,434,156 18,946,820 28,124,659 46,607,272 53,803,264 57,426,026 120,244,176 153,767,030
4,888,556 8,729,254 12,586,122 10,259,504 4,704,385 1,919,557 3,256,229 3,069,072
(5,120,403) (11,589,738) (10,291,758) (19,393,315) (4,867,248) (4,095,508) (9,960,620) (49,185,409)
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
16,202,309 16,086,336 30,419,023 37,473,461 53,640,401 55,250,075 113,539,785 107,650,693
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
9,855,496 29,867,378 32,687,313 44,233,954 57,542,828 66,530,450 131,037,940 129,037,073
157,442,847 127,575,469 118,128,583 73,894,629 98,052,821 31,522,371 165,785,281 36,748,208
- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
$167,298,343 $157,442,847 $150,815,896 $118,128,583 $155,595,649 $98,052,821 $296,823,221 $165,785,281
============== ============== ============== ============== ============== ============== ============== ==============
</TABLE>
B-6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
COMMON STOCK PORTFOLIO GLOBAL PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1996 1995 1996 1995
-------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ............................... $ 25,446,896 $ 53,432,936 $ 5,800,236 $ 9,803,075
Realized gain--net .................................. 256,172,454 262,461,526 23,239,820 17,804,800
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated assets
and liabilities--net ............................... 158,072,569 845,152,888 31,152,168 72,106,049
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets from
operations ......................................... 439,691,919 1,161,047,350 60,192,224 99,713,924
-------------- -------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Dividends from net investment income ................ (25,467,481) (53,432,936) (7,585,719) (9,500,310)
Dividends in excess of net investment income ....... -- (6,567,658) -- --
Distributions from realized gains ................... (252,068,647) (262,461,526) (20,760,499) (17,804,800)
Distributions in excess of realized gains .......... -- (8,497,379) -- (1,081,237)
Tax return of capital distributions ................. -- -- -- (546,316)
-------------- -------------- -------------- --------------
Decrease in net assets from dividends and
distributions ...................................... (277,536,128) (330,959,499) (28,346,218) (28,932,663)
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ......................................... 454,412,814 509,750,491 141,181,873 229,097,991
Shares issued in reinvestment of dividends and
distributions ...................................... 277,536,128 330,959,499 28,346,218 28,932,663
Shares redeemed ..................................... (91,494,078) (257,365,702) (21,552,329) (64,369,805)
-------------- -------------- -------------- --------------
Net increase in net assets derived from share
transactions ....................................... 640,454,864 583,344,288 147,975,762 193,660,849
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS ............................... 802,610,655 1,413,432,139 179,821,768 264,442,110
NET ASSETS, BEGINNING OF PERIOD ...................... 4,879,677,000 3,466,244,861 686,140,393 421,698,283
-------------- -------------- -------------- --------------
NET ASSETS, END OF PERIOD* ........................... $5,682,287,655 $4,879,677,000 $865,962,161 $686,140,393
============== ============== ============== ==============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $8,225,510 and $8,246,095 for the Common Stock Portfolio and
$(1,329,897) and $455,586 for the Global Portfolio and $(91,584) and
$6,487 for the International Portfolio and $(15,869) and $(4,129) for
the Aggressive Stock Portfolio and $55,279 and $63,026 for the
Conservative Investors Portfolio and $215,504 and $86,599 for the
Balanced Portfolio, as of June 30, 1996 and December 31, 1995,
respectively.
** Commencement of Operations.
See Notes to Financial Statements.
B-7
<PAGE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS
INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO PORTFOLIO BALANCED PORTFOLIO
- ------------------------------- ------------------------------ ------------------------------ -------------------------------
SIX MONTHS
ENDED APRIL 3, 1995** SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
JUNE 30, TO DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
1996 1995 1996 1995 1996 1995 1996 1995
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 499,948 $ 142,455 $ 3,749,386 $ 6,203,510 $ 6,375,018 $ 11,574,771 $ 23,805,367 $ 47,303,460
1,250,729 266,775 425,971,323 346,368,084 4,431,813 11,270,671 101,994,268 64,616,058
4,410,932 944,505 50,076,496 262,696,319 (13,662,350) 16,138,395 (61,791,383) 144,740,180
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
6,161,609 1,353,735 479,797,205 615,267,913 (2,855,519) 38,983,837 64,008,252 256,659,698
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
(598,019) (142,455) (3,761,126) (6,203,510) (6,382,765) (11,510,223) (23,676,462) (47,099,230)
-- (240,038) -- (43,012) -- -- -- --
(1,114,462) (118,651) (423,010,089) (300,293,392) (4,461,251) (1,556,393) (102,312,878) (41,562,533)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
(1,712,481) (501,144) (426,771,215) (306,539,914) (10,844,016) (13,066,616) (125,989,340) (88,661,763)
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
83,976,848 29,365,420 552,381,770 843,611,785 38,080,475 50,112,293 37,098,338 55,178,023
1,712,481 501,144 426,771,215 306,539,914 10,844,016 13,066,616 125,989,340 88,661,763
(13,859,852) (2,035,292) (236,105,691) (590,529,129) (14,280,508) (10,686,445) (51,628,128) (118,515,605)
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
71,829,477 27,831,272 743,047,294 559,622,570 34,643,983 52,492,464 111,459,550 25,324,181
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
76,278,605 28,683,863 796,073,284 868,350,569 20,944,448 78,409,685 49,478,462 193,322,116
28,683,863 -- 2,700,514,849 1,832,164,280 252,100,995 173,691,310 1,523,141,728 1,329,819,612
- -------------- --------------- -------------- -------------- -------------- -------------- -------------- ---------------
$104,962,468 $28,683,863 $3,496,588,133 $2,700,514,849 $273,045,443 $252,100,995 $1,572,620,190 $1,523,141,728
============== =============== ============== ============== ============== ============== ============== ===============
</TABLE>
B-8
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
GROWTH INVESTORS
PORTFOLIO
------------------------------
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1996 1995
-------------- --------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .............................. $ 13,037,350 $ 23,451,903
Realized gain--net ................................. 113,119,981 20,094,016
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ....................... (79,174,075) 114,933,862
-------------- --------------
Net increase in net assets from operations ........ 46,983,256 158,479,781
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 1):
Dividends from net investment income ............... (13,532,611) (23,451,903)
Dividends in excess of net investment income ...... -- (429,740)
Distributions from realized gains .................. (112,377,572) (11,896,371)
-------------- --------------
Decrease in net assets from dividends and
distributions ..................................... (125,910,183) (35,778,014)
-------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 4):
Shares sold ........................................ 186,898,800 264,281,654
Shares issued in reinvestment of dividends and
distributions ..................................... 125,910,183 35,778,014
Shares redeemed .................................... (6,449,624) (19,105,124)
-------------- --------------
Net increase in net assets derived from share
transactions ...................................... 306,359,359 280,954,544
-------------- --------------
INCREASE IN NET ASSETS .............................. 227,432,432 403,656,311
NET ASSETS, BEGINNING OF PERIOD ..................... 896,133,860 492,477,549
-------------- --------------
NET ASSETS, END OF PERIOD* .......................... $1,123,566,292 $896,133,860
============== ==============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $(389,293) and $105,968 for the Growth Investors Portfolio, as
of June 30, 1996 and December 31, 1995, respectively.
See Notes to Financial Statements.
B-9
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ------------------------------------------------------- ------------ ------------- -----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES
NationsBank Corp.
Due 07/10/96 .......................................... $ 6,000,000 $ 6,000,147 5.47%
Wachovia Bank N. Carolina
Due 11/07/96 .......................................... 10,050,000 10,097,235 5.85
-------------
TOTAL BANK NOTES (4.6%) .............................. 16,097,382
-------------
BANKERS' ACCEPTANCES (2.8%)
Citibank N.A.-N.Y.
Due 08/07/96 .......................................... 10,000,000 9,940,633 5.73
-------------
CERTIFICATES OF DEPOSIT
BNP U.S. Finance Corp.
Due 07/01/96 .......................................... 4,000,000 3,999,991 5.56
Mitsubishi Bank Ltd.-N.Y.
Due 07/10/96 .......................................... 5,000,000 4,999,898 5.72
Sanwa Bank Ltd.
Due 07/17/96 .......................................... 3,000,000 2,999,925 5.72
Sumitomo Bank-N.Y.
Due 07/03/96 .......................................... 16,000,000 15,999,873 5.72
-------------
TOTAL CERTIFICATES OF DEPOSIT (8.0%) ................. 27,999,687
-------------
COMMERCIAL PAPER
Aga Capital Corp.
Due 07/03/96 .......................................... 8,700,000 8,694,877 5.52
Alpha Finance Corp.
Due 11/18/96 .......................................... 5,300,000 5,188,155 5.64
ASI Funding Corp.
Due 08/27/96 .......................................... 1,058,000 1,048,810 5.55
Atlas Funding:
Due 07/17/96 .......................................... 4,310,000 4,298,600 5.52
Due 07/22/96 .......................................... 12,200,000 12,158,767 5.52
Barton Capital Corp.
Due 10/11/96 .......................................... 11,016,000 10,846,378 5.60
Beta Finance, Inc.
Due 08/29/96 .......................................... 3,000,000 2,972,957 5.57
Corporate Asset Securitization Australia:
Due 07/01/96 .......................................... 3,500,000 3,498,969 5.52
Due 08/06/96 .......................................... 7,500,000 7,458,042 5.54
Crosby Head Funding
Due 07/09/96 .......................................... 14,000,000 13,979,388 5.53
Citicorp
Due 07/01/96 .......................................... 7,500,000 7,497,792 5.52
Copley Financing Corp.
Due 07/31/96 .......................................... 9,400,000 9,355,716 5.53
Enterprise Funding Corp.
Due 08/08/96 .......................................... 4,300,000 4,274,678 5.54
Fleet Funding, Inc.
Due 07/01/96 .......................................... 2,800,000 2,799,176 5.52
Greenwich Funding:
Due 07/02/96 .......................................... 10,000,000 9,995,583 5.52
Due 07/17/96 .......................................... 2,010,000 2,004,684 5.52
International Securitization:
Due 07/19/96 .......................................... 7,000,000 6,979,428 5.52
Due 09/09/96 .......................................... 1,635,000 1,617,604 5.57
Due 09/13/96 .......................................... 5,087,000 5,029,867 5.57
Due 11/25/96 .......................................... 2,500,000 2,444,642 5.64
B-10
<PAGE>
THE HUDSON RIVER TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ------------------------------------------------------- ------------ ------------- -----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
Jefferson Smurfit:
Due 07/16/96 .......................................... $ 6,700,000 $ 6,683,263 5.52%
Due 08/15/96 .......................................... 9,135,000 9,071,791 5.54
Morgan Stanley Group, Inc.
Due 09/16/96 .......................................... 14,900,000 14,724,088 5.64
Old Line Funding:
Due 07/08/96 .......................................... 1,242,000 1,240,354 5.52
Due 07/18/96 .......................................... 3,523,000 3,513,164 5.52
Due 07/24/96 .......................................... 12,000,000 11,955,917 5.52
Premium Funding-Series B
Due 07/23/96 .......................................... 5,055,000 5,037,173 5.52
Premium Funding-Series A & E:
Due 07/02/96 .......................................... 5,000,000 4,997,792 5.52
Due 07/16/96 .......................................... 1,012,000 1,009,472 5.52
Ranger Funding Corp.
Due 07/26/96 .......................................... 6,200,000 6,175,402 5.52
Receivable Capital Corp.:
Due 07/17/96 .......................................... 6,202,000 6,185,596 5.52
Due 07/25/96 .......................................... 3,002,000 2,990,531 5.52
Strategic Asset Funding
Due 07/17/96 .......................................... 12,456,000 12,423,054 5.52
Sigma Finance:
Due 07/29/96 .......................................... 5,006,000 4,983,890 5.53
Due 09/30/96 .......................................... 5,000,000 4,931,154 5.59
Due 10/08/96 .......................................... 5,000,000 4,925,232 5.60
Suntrust Bank
Due 09/03/96 .......................................... 5,000,000 4,950,958 5.60
Triple A Funding:
Due 08/09/96 .......................................... 3,185,000 3,165,775 5.54
Due 08/30/96 .......................................... 5,000,000 4,954,189 5.57
Three River Funding
Due 07/15/96 .......................................... 9,300,000 9,278,135 5.52
Unilever PLC
Due 10/18/96 .......................................... 2,100,000 2,065,488 5.60
Working Capital Management Corp.:
Due 07/08/96 .......................................... 8,915,000 8,903,188 5.52
Due 07/19/96 .......................................... 8,000,000 7,976,488 5.52
Westpac Capital Corp.
Due 09/30/96 .......................................... 5,000,000 4,930,379 5.66
-------------
TOTAL COMMERCIAL PAPER (76.7%) ....................... 269,216,586
-------------
TIME DEPOSITS (3.6%)
Mitsubishi Bank Ltd.-N.Y.
Due 07/01/96 .......................................... 12,700,000 12,700,118 5.79
-------------
VARIABLE RATE LIBOR (4.3%)
Goldman Sachs & Co.
Due 09/13/96 .......................................... 15,202,511 15,202,960 5.79
-------------
TOTAL INVESTMENTS IN SHORT-TERM DEBT SECURITIES
(100.0%)
(Amortized Cost $351,153,075) ......................... 351,157,366
LIABILITIES IN EXCESS OF CASH AND RECEIVABLES (0.0%) .. (171,247)
-------------
NET ASSETS (100.0%) .................................... $350,986,119
=============
</TABLE>
- ------------
* Based on market values at the close of business on June 30, 1996.
See Notes to Financial Statements.
B-11
<PAGE>
THE HUDSON RIVER TRUST
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
COLLATERALIZED MORTGAGE
OBLIGATIONS (4.8%)
Federal Home Loan Mortgage Corp.
5.75%, 10/15/11 ................. $ 3,724,041 $ 3,717,078
-------------
MORTGAGE RELATED (41.9%)
Federal Home Loan Mortgage
Association
7.0% TBA, 06/13/11 .............. 5,900,000 5,817,034
Federal Home Loan
Mortgage Corp.
9.5%, 01/01/20 .................. 4,984 5,294
Federal National Mortgage
Association:
7.0% 7 Year Bln, 06/18/03 ...... 5,500,000 5,479,375
7.642%, 09/01/22 (a) ............ 2,718,095 2,810,673
7.765%, 10/01/23 (a) ............ 169,404 173,375
8.0% TBA, 6/28/26 ............... 3,900,000 3,921,938
8.013%, 05/01/27 ................ 1,737,304 1,806,797
Government National Mortgage
Association:
8.0%, 06/15/23 .................. 1,004,334 1,013,115
8.0%, 11/15/23 .................. 303,770 306,426
8.0%, 07/15/24 .................. 313,898 316,643
8.0%, 09/15/24 .................. 370,199 373,436
8.0%, 10/15/24 .................. 302,613 305,260
8.0%, 11/15/24 .................. 279,829 282,276
8.0%, 03/15/25 .................. 327,845 330,712
8.0%, 04/15/25 .................. 323,570 326,399
7.5%, 04/20/25 (a) .............. 3,266,660 3,292,761
8.0%, 05/15/25 .................. 1,528,618 1,541,984
7.5%, 06/20/25 (a) .............. 4,532,747 4,568,964
-------------
32,672,462
-------------
LONG-TERM DEBT SECURITIES (Continued):
U.S. GOVERNMENT AGENCIES (38.1%)
Resolution Funding S.T.R.I.P.S.
Zero Coupon Deb., 04/15/99 ..... $ 5,000,000 $ 4,194,200
U.S. Treasury:
5.5% Note, 12/31/00 ............. 6,600,000 6,356,625
6.375% Note, 03/31/01 ........... 11,000,000 10,948,432
11.875% Bond, 11/15/03 .......... 6,300,000 8,184,091
-------------
29,683,348
-------------
TOTAL LONG-TERM DEBT SECURITIES (84.8%)
(Amortized Cost $65,896,689) ... 66,072,888
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank:
5.3%, due 07/01/96 .............. 15,300,000 15,295,495
5.26%, due 07/15/96 ............. 5,000,000 4,988,311
-------------
TOTAL U.S. GOVERNMENT (26.0%) 20,283,806
-------------
TOTAL SHORT-TERM DEBT SECURITIES (26.0%)
(Amortized Cost $20,283,806) ... 20,283,806
-------------
TOTAL INVESTMENTS (110.8%)
(Amortized Cost $86,180,495) ... 86,356,694
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (-10.8%) ............ (8,370,836)
-------------
NET ASSETS (100.0%) .............. $77,985,858
=============
</TABLE>
- ------------
(a) Adjustable rate mortgage; stated interest rate in effect at June 30,
1996.
See Notes to Financial Statements.
B-12
<PAGE>
THE HUDSON RIVER TRUST
QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------ --------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (3.7%)
PRINTING, PUBLISHING &
BROADCASTING
Time Warner, Inc.
9.125%, 01/15/13 .............. $ 6,000,000 $ 6,266,280
--------------------
CONSUMER CYCLICALS (3.5%)
AUTO RELATED
Auburn Hills Trust
12.0% Deb., 05/01/20 .......... 4,040,000 5,835,376
--------------------
CREDIT SENSITIVE
BANKS (3.8%)
St. George Bank Ltd.
7.15%, 10/15/05+ .............. 6,500,000 6,286,540
--------------------
FINANCIAL SERVICES (3.2%)
Prudential Insurance Co.
8.3%, 07/01/25+ ............... 5,400,000 5,371,542
--------------------
FOREIGN GOVERNMENT (12.2%)
Government of Canada
7.0%, 12/01/06 ................ 19,850,000 13,822,666
Republic of Poland
3.75% PDI, 10/27/14+(a) ...... 8,500,000 6,523,750
--------------------
20,346,416
--------------------
INSURANCE (1.1%)
John Hancock Mutual Life
Insurance Co.
7.375%, 02/15/24 .............. 2,000,000 1,855,460
--------------------
MORTGAGE RELATED (21.4%)
Federal National Mortgage
Association:
6.5%, 05/01/11 ................ 13,563,884 13,106,103
7.0%, 05/01/26 ................ 16,887,653 16,248,963
Government National Mortgage
Association
7.5%, 01/15/26 ................ 6,561,503 6,465,082
--------------------
35,820,148
--------------------
<PAGE>
LONG-TERM DEBT SECURITIES (Continued):
UTILITY--ELECTRIC (3.1%)
Empresa Electrica del Norte
Grande
7.75%, 03/15/06+ .............. $ 5,300,000 $ 5,257,388
--------------------
U.S. GOVERNMENT (41.0%)
Federal Farmers Credit
7.64% Medium Term Note,
02/03/98 ...................... 5,000,000 5,106,500
Federal Home Loan Bank
5.725%, 06/15/98 .............. 20,000,000 19,827,600
U.S. Treasury:
5.875% Note, 08/15/98 ......... 24,000,000 23,857,488
6.75% Note, 04/30/00 .......... 12,500,000 12,632,813
5.75% Note, 08/15/03 .......... 7,500,000 7,136,715
--------------------
68,561,116
--------------------
TOTAL CREDIT SENSITIVE (85.8%) 143,498,610
--------------------
TOTAL LONG-TERM DEBT SECURITIES (93.0%)
(Amortized Cost $156,961,208) 155,600,266
--------------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (0.8%)
Federal Home Loan Bank
5.3%, due 07/01/96 ............ 1,400,000 1,399,588
--------------------
TOTAL SHORT-TERM DEBT SECURITIES (0.8%)
(Amortized Cost $1,399,588) .. 1,399,588
--------------------
TOTAL INVESTMENTS (93.8%)
(Amortized Cost $158,360,796) 156,999,854
CASH AND RECEIVABLES
LESS LIABILITIES (6.2%) ....... 10,298,489
--------------------
NET ASSETS (100.0%) ............ $167,298,343
====================
</TABLE>
- ------------
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers.
(a) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1996.
See Notes to Financial Statements.
B-13
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ------------------------------- ------------ -----------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING &
BROADCASTING
Pegasus Media & Communications
(Class B)* 150 $ 45,000
-----------
CAPITAL GOODS (0.0%)
BUILDING & CONSTRUCTION
Capital Pacific Holdings,
Inc.--Warrants* 11,850 5,925
-----------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.0%)
AVI Holdings, Inc.--
Warrants*+ 3,300 0
-----------
RETAIL--GENERAL (0.0%)
Eye Care Centers of
America--Warrants* 5,000 50,000
Florist Transworld Corp.
(Class B)* 18,750 15
-----------
TOTAL CONSUMER CYCLICALS (0.0%) 50,015
-----------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.1%)
Wright Medical Technology,
Inc.--Warrants* 618 77,250
-----------
SOAPS & TOILETRIES (0.0%)
Renaissance
Cosmetics--Warrants*+ 2,000 45,000
-----------
TOTAL CONSUMER NONCYCLICALS (0.1%) 122,250
-----------
TOTAL COMMON STOCKS (0.1%)
(Cost $261,435) 223,190
-----------
PRINCIPAL
AMOUNT
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (2.5%)
Trans Resources, Inc.
11.875% Sr. Sub. Note
Series B, 07/01/02 $4,000,000 3,830,000
-----------
METALS & MINING (4.0%)
Great Lakes Carbon Corp.
10.0%, 01/01/06 2,500,000 2,562,500
Ryerson Tull, Inc.
9.125%, 07/15/06 3,500,000 3,513,125
-----------
6,075,625
-----------
PAPER (2.4%)
Four M Corp.
12.0%, 06/01/06+ 3,500,000 3,570,000
-----------
STEEL (2.3%)
Weirton Steel Corp.
11.375%, 07/01/04+ 3,500,000 3,456,250
-----------
TOTAL BASIC MATERIALS (11.2%) 16,931,875
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (12.1%)
Albritton Communications
9.75%, 11/30/07+ $4,500,000 $ 4,106,250
Grupo Televisa S.A.
11.875%, 05/15/06+ 2,300,000 2,346,000
Park Broadcasting, Inc.
11.75%, 05/15/04+ 5,000,000 4,987,500
Pegasus Media & Communications
12.5%, 07/01/05 2,000,000 2,060,000
Telemundo Group, Inc.
7.0%, 02/15/06 (a) 5,250,000 4,751,250
-------------
18,251,000
-------------
TRUCKING, SHIPPING (1.3%)
Stena AB
10.5%, 12/15/05 2,000,000 1,990,000
-------------
TOTAL BUSINESS SERVICES (13.4%) 20,241,000
-------------
CAPITAL GOODS
BUILDING & CONSTRUCTION (5.3%)
Peters (J.M.) Co.
12.75%, 05/01/02 3,000,000 2,805,000
Terex Corp.
13.75%, 05/15/02+(b) 5,000,000 5,218,750
-------------
8,023,750
-------------
ELECTRICAL EQUIPMENT (2.1%)
Exide Electronics Group
11.5%, 03/15/06+ 3,000,000 3,180,000
-------------
TOTAL CAPITAL GOODS (7.4%) 11,203,750
-------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (3.3%)
Apparel Ventures, Inc.
12.25%, 12/31/00 900,000 630,000
CMI Industries
9.5%, 10/01/03 5,000,000 4,312,500
-------------
4,942,500
-------------
AUTO RELATED (1.7%)
Hayes Wheels International, Inc.
11.0%, 07/15/06 2,600,000 2,635,750
-------------
HOUSEHOLD FURNITURE, APPLIANCES (1.1%)
Crain Industries
13.5%, 08/15/05 1,500,000 1,590,000
-------------
LEISURE RELATED (12.0%)
Alliance Gaming Corp.
12.875%, 06/30/03 4,000,000 3,970,000
American Skiing Corp.
12.0%, 07/15/06+ 3,000,000 2,940,000
Argosy Gaming Co.
13.25%, 06/01/04+ 3,000,000 3,045,000
Majestic Star Casino LLC
12.75%, 05/15/03+ 3,500,000 3,780,000
</TABLE>
B-14
<PAGE>
THE HUDSON RIVER TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
Showboat Marina Casino &
Financial Corp.
13.5%, 03/15/03+ $4,000,000 $ 4,340,000
-------------
18,075,000
-------------
RETAIL--GENERAL (8.6%)
Eye Care Centers of America
12.0%, 10/01/03 5,000,000 5,150,000
Florist Transworld Corp.
14.0%, 12/15/01 1,500,000 1,537,500
Michaels Stores, Inc.
10.875%, 06/15/06 3,500,000 3,591,875
Pantry, Inc.
12.0%, 11/15/00 3,000,000 2,640,000
-------------
12,919,375
-------------
TOTAL CONSUMER CYCLICALS (26.7%) 40,162,625
-------------
CONSUMER NONCYCLICALS
FOODS (2.2%)
Specialty Foods Corp.
11.125%, 10/01/02+ 3,500,000 3,325,000
-------------
CONTAINERS (3.8%)
Gaylord Container Corp.
11.5%, 05/15/01 3,500,000 3,578,750
MVE, Inc.
12.5%, 02/15/02 2,000,000 2,080,000
-------------
5,658,750
-------------
HOSPITAL SUPPLIES & SERVICES (3.3%)
Owens & Minor
10.875%, 06/01/06 2,000,000 2,027,500
Regency Health Services
12.25%, 07/15/03+ 3,000,000 3,045,000
-------------
5,072,500
-------------
TOTAL CONSUMER NONCYCLICALS (9.3%) 14,056,250
-------------
CREDIT SENSITIVE
FOREIGN GOVERNMENT (2.5%)
Republic of Poland
3.75% PDI, 10/27/14+(a) 5,000,000 3,837,500
-------------
UTILITY--ELECTRIC (2.3%)
Calpine Corp.
10.5%, 05/15/06+ 3,500,000 3,500,000
-------------
UTILITY--GAS (5.5%)
Bridas Corp.
12.5%, 11/15/99 2,100,000 2,186,625
APITAL PRINTING SYSTEMS]
<PAGE>
LONG-TERM DEBT SECURITIES (Continued):
TransTexas Gas Corp.
11.5%, 06/15/02 $6,000,000 $ 5,970,000
-------------
8,156,625
-------------
TOTAL CREDIT SENSITIVE (10.3%) 15,494,125
-------------
ENERGY (2.3%)
OIL--SUPPLIES & CONSTRUCTION
Deeptech International
12.0%, 12/15/00 3,500,000 3,465,000
-------------
TECHNOLOGY
ELECTRONICS (6.0%)
Sullivan Graphic
12.75%, 08/01/05 4,000,000 3,860,000
Unisys Corp.
12.0%, 04/15/03+ 5,000,000 5,112,500
-------------
8,972,500
-------------
TELECOMMUNICATIONS (9.2%)
Alpine Group, Inc.
12.25%, 07/15/03 2,000,000 2,015,000
Millicom International Cellular
Zero Coupon, 06/01/06+(c) 4,000,000 2,130,000
Peoples Telephone Co., Inc.
12.25%, 07/15/02 2,000,000 1,940,000
Rogers Cantel, Inc.
9.375%, 06/01/08 2,000,000 1,940,000
Teleport Communications
Group, Inc.:
9.875%, 07/01/06 3,000,000 3,000,000
Zero Coupon, 07/01/07 (c) 5,000,000 2,912,500
-------------
13,937,500
-------------
TOTAL TECHNOLOGY (15.2%) 22,910,000
-------------
TOTAL LONG-TERM DEBT SECURITIES (95.8%)
(Amortized Cost $141,255,829) 144,464,625
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank
5.3%, due 07/01/96 3,100,000 3,099,087
5.26%, due 07/15/96 5,000,000 4,988,311
-------------
TOTAL U.S. GOVERNMENT (5.4%) 8,087,398
-------------
TOTAL SHORT-TERM DEBT SECURITIES (5.4%)
(Amortized Cost $8,087,398) 8,087,398
-------------
TOTAL INVESTMENTS (101.3%)
(Cost/Amortized Cost $149,604,662) 152,775,213
LIABILITIES IN EXCESS OF CASH AND
RECEIVABLES (-1.3%) (1,959,317)
-------------
NET ASSETS (100.0%) $150,815,896
=============
</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) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1996.
(b) Consists of more than one class of securities traded together as a
unit; generally bonds with attached stocks or warrants.
(c) 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-15
<PAGE>
THE HUDSON RIVER TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ---------- -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.2%)
Avery Dennison Corp. 15,000 $ 823,125
Dow Chemical Co. 35,000 2,660,000
-------------
3,483,125
-------------
METALS & MINING (0.6%)
Reynolds Metals Co. 17,400 906,975
-------------
TOTAL BASIC MATERIALS (2.8%) 4,390,100
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.5%)
Johnson Controls, Inc. 15,000 1,042,500
WMX Technologies, Inc. 40,000 1,310,000
-------------
2,352,500
-------------
PRINTING, PUBLISHING & BROADCASTING (2.1%)
Comcast Corp. (Class A) SPL 92,000 1,702,000
Liberty Media Group (Class A)* 62,000 1,643,000
-------------
3,345,000
-------------
PROFESSIONAL SERVICES (0.5%)
GATX Corp. 15,000 723,750
-------------
TRUCKING, SHIPPING (0.8%)
Xtra Corp. 26,500 1,172,625
-------------
TOTAL BUSINESS SERVICES (4.9%) 7,593,875
-------------
CAPITAL GOODS
AEROSPACE (0.7%)
Northrop Grumman Corp. 15,000 1,021,875
-------------
ELECTRICAL EQUIPMENT (1.6%)
General Electric Co. 30,000 2,595,000
-------------
TOTAL CAPITAL GOODS (2.3%) 3,616,875
-------------
CONSUMER CYCLICALS
AUTO RELATED (2.4%)
Goodyear Tire & Rubber Co. 76,500 3,691,125
-------------
HOUSEHOLD FURNITURE, APPLIANCES (0.8%)
Black & Decker Corp. 34,000 1,313,250
-------------
RETAIL--GENERAL (1.8%)
Federated Department Stores,
Inc.* 38,000 1,296,750
Price/Costco, Inc.* 22,500 486,563
Sears Roebuck & Co. 20,000 972,500
-------------
2,755,813
-------------
TOTAL CONSUMER CYCLICALS
(5.0%) 7,760,188
-------------
CONSUMER NONCYCLICALS
BEVERAGES (1.5%)
Pepsico, Inc. 64,000 2,264,000
-------------
CONTAINERS (0.5%)
Crown Cork & Seal, Inc. 16,000 720,000
-------------
DRUGS (6.3%)
Amgen, Inc.* 12,700 685,800
Bristol-Myers Squibb Co. 25,000 2,250,000
Merck & Co., Inc. 57,000 3,683,637
Schering Plough Corp. 50,000 3,137,500
-------------
9,756,937
-------------
<PAGE>
COMMON STOCK (Continued):
FOODS (4.0%)
Kellogg Co. 20,000 $ 1,465,000
Nabisco Holdings Corp. (Class
A) 97,000 3,431,375
Whitman Corp. 55,000 1,326,875
-------------
6,223,250
-------------
HOSPITAL SUPPLIES & SERVICES (2.1%)
Baxter International, Inc. 67,700 3,198,825
-------------
SOAPS & TOILETRIES (3.3%)
Clorox Co. 25,000 2,215,625
Colgate Palmolive Co. 35,000 2,966,250
-------------
5,181,875
-------------
TOBACCO (5.4%)
Philip Morris Cos., Inc. 47,000 4,888,000
RJR Nabisco Holdings Corp. 67,500 2,092,500
UST, Inc. 45,000 1,541,250
-------------
8,521,750
-------------
TOTAL CONSUMER NONCYCLICALS (23.1%) 35,866,637
-------------
CREDIT SENSITIVE
BANKS (5.2%)
Chase Manhattan Corp. 36,500 2,577,813
First Bank Systems 35,000 2,030,000
First Union Corp. 58,000 3,530,750
-------------
8,138,563
-------------
FINANCIAL SERVICES (3.8%)
Dean Witter Discover & Co. 21,000 1,202,250
Fleet Financial Group, Inc. 33,000 1,435,500
MBNA Corp. 22,500 641,250
Merrill Lynch & Co., Inc. 40,000 2,605,000
-------------
5,884,000
-------------
INSURANCE (2.0%)
General Re Corp. 12,000 1,827,000
PMI Group, Inc. 31,600 1,343,000
-------------
3,170,000
-------------
UTILITY--ELECTRIC (3.5%)
Duke Power Co. 30,000 1,537,500
Houston Industries, Inc. 60,000 1,477,500
Portland General Corp. 30,000 926,250
Teco Energy, Inc. 60,000 1,515,000
-------------
5,456,250
-------------
UTILITY--GAS (1.7%)
Consolidated Natural Gas Co. 50,000 2,612,500
-------------
UTILITY--TELEPHONE (5.6%)
AT&T Corp. 83,500 5,177,000
Alltel Corp. 71,000 2,183,250
Century Telephone Enterprises 40,000 1,275,000
-------------
8,635,250
-------------
TOTAL CREDIT SENSITIVE
(21.8%). 33,896,563
-------------
ENERGY
COAL & GAS PIPELINES (2.1%)
MCN Corp. 70,000 1,706,250
Williams Cos., Inc. 30,000 1,485,000
-------------
3,191,250
-------------
</TABLE>
B-16
<PAGE>
THE HUDSON RIVER TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ---------- -------------
<S> <C> <C>
COMMON STOCK (Continued):
OIL--INTERNATIONAL (3.6%)
Exxon Corp. 38,000 $ 3,301,250
Mobil Corp. 20,000 2,242,500
-------------
5,543,750
-------------
OIL--SUPPLIES & CONSTRUCTION (0.4%)
Halliburton Co. 10,000 555,000
-------------
RAILROADS (1.2%)
Norfolk Southern Corp. 25,000 2,118,750
-------------
TOTAL ENERGY (7.3%) 11,408,750
-------------
TECHNOLOGY
ELECTRONICS (2.6%)
Atmel Corp.* 52,000 1,566,500
Lam Research Corp.* 7,000 182,000
National Semiconductor Corp.* 147,000 2,278,500
-------------
4,027,000
-------------
OFFICE EQUIPMENT (4.0%)
Compaq Computer Corp.* 25,000 1,231,250
International Business Machines
Corp. 34,000 3,366,000
Xerox Corp. 30,000 1,605,000
-------------
6,202,250
-------------
TELECOMMUNICATIONS (3.8%)
DSC Communications Corp.* 39,700 1,195,963
MFS Communications Co., Inc.* 474 17,834
Nokia Corp. (ADR) 37,000 1,369,000
Scientific Atlanta, Inc. 50,000 775,000
Teleport Communications Group,
Inc. (Class A)* 55,200 1,055,700
Vodafone Group PLC (ADR) 41,000 1,511,875
-------------
5,925,372
-------------
TOTAL TECHNOLOGY (10.4%) 16,154,622
-------------
DIVERSIFIED (1.0%)
MISCELLANEOUS
Allied Signal, Inc. 27,000 1,542,374
-------------
TOTAL COMMON STOCKS (78.6%)
(Cost $112,521,607) 122,229,984
-------------
PREFERRED STOCKS:
CONSUMER CYCLICALS
AIRLINES (0.5%)
Continental Air Finance Trust
8.5% Conv.+ 11,100 810,300
-------------
LEISURE RELATED (0.4%)
Station Casinos, Inc. 7.0%
Conv. 9,400 540,500
-------------
TOTAL CONSUMER CYCLICALS
(0.9%) 1,350,800
-------------
CONSUMER NONCYCLICALS (0.3%)
HOSPITAL SUPPLIES & SERVICES
FHP International Corp.
5.0% Conv. Series A 15,900 405,450
-------------
CREDIT SENSITIVE
BANKS (0.3%)
First Chicago NBD Corp.
5.75% Conv. Series B 7,600 506,350
-------------
<PAGE>
PREFERRED STOCKS (Continued):
INSURANCE (0.3%)
Travelers Group, Inc.
5.5% Conv. Series B 4,400 $ 404,800
-------------
UTILITY--TELEPHONE (1.0%)
LCI International, Inc.
5.0% Conv. 19,800 1,633,500
-------------
TOTAL CREDIT SENSITIVE (1.6%) 2,544,650
-------------
TECHNOLOGY (0.5%)
TELECOMMUNICATIONS
MFS Communications Co., Inc.
8.0% Conv.* 12,400 787,400
-------------
TOTAL PREFERRED STOCKS (3.3%)
(Cost $3,725,650) 5,088,300
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.3%)
United Waste Systems, Inc.
4.5 Conv., 06/01/01+ ............ $390,000 442,650
------------
PROFESSIONAL SERVICES (1.6%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 ............ 280,000 591,150
Danka Business Systems PLC
6.75% Conv., 04/01/02 ........... 470,000 552,837
First Financial Management Corp.
5.0% Conv., 12/15/99 ............ 740,000 1,386,575
------------
2,530,562
------------
TOTAL BUSINESS SERVICES (1.9%) . 2,973,212
------------
CAPITAL GOODS
MACHINERY (0.4%)
DII Group, Inc.
6.0% Conv., 10/15/02 ............ 410,000 396,675
Titan Wheel International, Inc.
4.75% Conv., 12/01/00 ........... 160,000 205,400
------------
TOTAL CAPITAL GOODS (0.4%) ..... 602,075
------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.2%)
Nine West Group, Inc.
5.5% Conv., 07/15/03 ............ 350,000 353,500
------------
FOOD SERVICES, LODGING (0.9%)
HFS, Inc.
4.5% Conv., 10/01/99 ............ 365,000 1,416,200
------------
RETAIL--GENERAL (1.2%)
Federated Department Stores, Inc.
5.0% Conv., 10/01/03 ............ 460,000 526,700
Lowe's Cos., Inc.
3.0% Conv., 07/22/03 ............ 590,000 814,200
Williams-Sonoma, Inc.
5.25 Conv., 04/15/03+ ........... 430,000 462,250
------------
1,803,150
------------
TOTAL CONSUMER CYCLICALS (2.3%) 3,572,850
------------
</TABLE>
B-17
<PAGE>
THE HUDSON RIVER TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- -----------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ---------- -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (Continued):
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (1.8%)
American Medical Response
5.25% Conv., 02/01/01+ $ 470,000 $ 513,475
Healthsouth Corp.
5.0% Conv., 04/01/01 480,000 933,000
Omnicare, Inc.
5.75% Conv., 10/01/03 205,000 752,350
Rotech Medical Corp.
5.25% Conv. Sub. Note,
06/01/03+ 220,000 210,100
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+ 415,000 425,375
-------------
TOTAL CONSUMER NONCYCLICALS (1.8%) 2,834,300
-------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.8%)
Aames Financial Corp.
5.5% Conv., 03/15/06+ 330,000 457,050
Safeguard Scientifics
6.0% Conv., 02/01/06+ 600,000 814,500
-------------
1,271,550
-------------
UTILITY--TELEPHONE (0.9%)
Worldcom, Inc.
5.0% Conv., 08/15/03 895,000 1,306,700
-------------
TOTAL CREDIT SENSITIVE (1.7%) 2,578,250
-------------
ENERGY (0.4%)
OIL--SUPPLIES & CONSTRUCTION
Seacor Holdings
6.0% Conv., 07/01/03+ 340,000 593,725
-------------
TECHNOLOGY
ELECTRONICS (2.8%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ 680,000 678,300
Applied Magnetics Corp.
7.0% Conv., 03/15/06+ 720,000 635,400
C-Cube Microsystems, Inc.
5.875% Conv., 11/01/05 280,000 343,000
LSI Logic Corp.
5.5% Conv., 03/15/01+ 205,000 441,262
<PAGE>
LONG-TERM DEBT SECURITIES (Continued):
SCI Systems, Inc.
5.0% Conv., 05/01/06+ $ 690,000 $ 721,050
Sanmina Corporation
5.5% Conv., 08/15/02+ 705,000 801,937
3Com Corp.
10.25% Conv., 11/01/01+ 495,000 773,438
-------------
4,394,387
-------------
OFFICE EQUIPMENT SERVICES (0.4%)
Comverse Technology, Inc.
5.25% Conv. Euro, 12/01/03 405,000 647,494
-------------
TELECOMMUNICATIONS (0.8%)
BBN Corp.
6.0% Conv., 04/01/12 710,000 658,525
Intelcom Group, Inc.:
7.0% Conv. PIK Bond, 10/30/98 380,000 527,725
7.0% Conv. Interest Notes,
10/30/98 20,300 28,192
-------------
1,214,442
-------------
TOTAL TECHNOLOGY (4.0%) 6,256,323
-------------
DIVERSIFIED
MISCELLANEOUS (0.8%)
Thermo Electron Corp.:
5.0% Conv. Euro, 04/15/01 480,000 966,000
4.25% Conv., 01/03/03+ 290,000 356,700
-------------
TOTAL DIVERSIFIED (0.8%) 1,322,700
-------------
TOTAL LONG-TERM DEBT SECURITIES (13.3%)
(Amortized Cost $17,135,016) 20,733,435
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (4.6%)
Federal Home Loan Bank
5.3%, due 07/01/96 7,200,000 7,197,880
-------------
TOTAL SHORT-TERM DEBT SECURITIES (4.6%)
(Amortized Cost $7,197,880) 7,197,880
-------------
TOTAL INVESTMENTS (99.8%) (Cost/Amortized
Cost $140,580,153) 155,249,599
CASH AND RECEIVABLES LESS
LIABILITIES (0.2%) 346,050
-------------
NET ASSETS (100.0%) $155,595,649
=============
</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-18
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.5%)
Air Products & Chemicals, Inc. 6,200 $ 358,050
Avery Dennison Corp. 3,000 164,625
Dow Chemical Co. 14,900 1,132,400
Dupont (E.I.) de Nemours & Co. 31,600 2,500,350
Eastman Chemical Company 4,400 267,850
Ecolab, Inc. 4,300 141,900
FMC Corp.* 2,100 137,025
Goodrich (B.F.) Co. 3,300 123,338
Grace (W.R.) & Co. 5,400 382,725
Hercules, Inc. 6,100 337,025
Millipore Corp. 3,300 138,188
Monsanto Co. 33,100 1,075,750
Nalco Chemical Co. 4,300 135,450
Rohm & Haas Co. 3,800 238,450
Union Carbide Corp. 7,600 302,100
---------------
7,435,226
---------------
CHEMICALS--SPECIALTY (0.3%)
Great Lakes Chemical Corp. 3,700 230,325
Morton International, Inc. 8,100 301,725
Raychem Corp. 2,400 172,500
Sigma-Aldrich Corp. 2,700 144,450
---------------
849,000
---------------
METALS & MINING (1.3%)
Alcan Aluminium Ltd. 12,800 390,400
Aluminum Co. of America 9,800 562,275
Asarco, Inc. 4,900 135,363
Barrick Gold Corp. 18,900 512,663
Cyprus Amax Minerals Co. 6,000 135,750
Engelhard Corp. 7,650 175,950
Freeport-McMoRan
Copper & Gold, Inc. (Class B) 11,200 357,000
Homestake Mining Co. 7,600 130,150
Inco Ltd. 6,300 203,175
Newmont Mining Corp. 5,448 268,995
Phelps Dodge Corp. 3,800 237,025
Placer Dome, Inc. 12,300 293,663
Reynolds Metals Co. 3,500 182,438
Santa Fe Pacific Gold Corp. 9,220 130,233
---------------
3,715,080
---------------
PAPER (1.3%)
Boise Cascade Corp. 3,600 131,850
Champion International Corp. 5,500 229,625
Georgia Pacific Corp. 5,000 355,000
International Paper Co. 16,725 616,734
James River Corp. 5,500 145,063
Kimberly Clark Corp. 15,722 1,214,525
Mead Corp. 2,800 145,250
Moore Corp. Ltd. 7,300 137,788
Stone Container Corp. 9,400 129,250
Temple Inland, Inc. 3,100 144,925
Union Camp Corp. 3,800 185,250
Westvaco Corp. 5,500 164,313
Willamette Industries, Inc. 3,000 178,500
---------------
3,778,073
---------------
<PAGE>
COMMON STOCKS (Continued):
STEEL (0.1%)
Bethlehem Steel Corp.* 10,000 $ 118,750
Nucor Corp. 4,700 237,938
USX-U.S. Steel Group 4,000 113,500
Worthington Industries, Inc. 6,300 131,513
---------------
601,701
---------------
TOTAL BASIC MATERIALS (5.5%) 16,379,080
---------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Browning-Ferris Industries, Inc. 11,600 336,400
Johnson Controls, Inc. 2,300 159,850
WMX Technologies, Inc. 27,400 897,350
---------------
1,393,600
---------------
PRINTING, PUBLISHING &
BROADCASTING (2.1%)
Comcast Corp. (Class A) SPL 13,200 244,200
Deluxe Corp. 4,700 166,850
Donnelley (R.R.) & Sons Co. 8,500 296,437
Dow Jones & Co., Inc. 5,500 229,625
Dun & Bradstreet Corp. 9,500 593,750
Gannett Co. 8,000 566,000
Jostens, Inc. 6,392 126,242
King World Productions, Inc.* 3,600 130,950
Knight-Ridder, Inc. 2,700 195,750
McGraw-Hill Companies, Inc. 5,500 251,625
New York Times Co. 5,100 166,387
TCI Group (Class A)* 37,100 672,437
Time Warner, Inc. 22,000 863,500
Times Mirror Co. (Class A) 6,200 269,700
Tribune Co. 3,600 261,450
U.S. West Media Group* 26,000 474,500
Viacom, Inc. (Class A)* 1,000 38,125
Viacom, Inc. (Class B)* 19,900 773,612
---------------
6,321,140
---------------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. 5,700 185,962
Interpublic Group Cos., Inc. 4,300 201,562
Service Corp. International 6,800 391,000
---------------
778,524
---------------
TRUCKING, SHIPPING (0.2%)
Caliber System, Inc. 3,700 125,800
Federal Express Corp.* 3,300 270,600
Laidlaw, Inc. (Class B) 14,000 141,750
Ryder System, Inc. 4,300 120,936
---------------
659,086
---------------
TOTAL BUSINESS SERVICES (3.1%) 9,152,350
---------------
CAPITAL GOODS
AEROSPACE (2.1%)
Boeing Co. 19,400 1,690,225
General Dynamics Corp. 3,400 210,800
Lockheed Martin Corporation 11,204 941,136
McDonnell Douglas Corp. 12,700 615,950
Northrop Grumman Corp. 3,200 218,000
Raytheon Co. 13,800 712,425
Rockwell International Corp. 12,300 704,175
</TABLE>
B-19
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS (Continued):
TRW, Inc. 3,600 $ 323,550
United Technologies Corp. 6,900 793,500
---------------
6,209,761
---------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.7%)
Armstrong World Industries, Inc. 2,500 144,062
Crane Co. 3,100 127,100
Louisiana Pacific Corp. 5,900 130,537
Masco Corp. 9,100 275,275
Owens Corning* 3,300 141,900
PPG Industries, Inc. 11,000 536,250
Sherwin Williams Co. 4,700 218,550
Weyerhaeuser Co. 11,400 484,500
---------------
2,058,174
---------------
ELECTRICAL EQUIPMENT (3.4%)
Emerson Electric Co. 12,700 1,147,760
General Electric Co. 94,000 8,131,000
Grainger (W.W.), Inc. 2,900 224,750
Thomas & Betts Corp. 3,600 135,000
Westinghouse Electric Corp. 23,500 440,625
---------------
10,079,135
---------------
MACHINERY (1.4%)
Case Corp. 3,900 187,200
Caterpillar, Inc. 11,200 758,800
Cooper Industries, Inc. 6,100 253,150
Cummins Engine, Inc. 3,100 125,163
Deere & Co. 14,900 596,000
Dover Corp. 6,200 285,975
Fluor Corp. 4,600 300,725
Foster Wheeler Corp. 3,100 139,113
General Signal Corp. 3,600 136,350
Harnischfeger Industries Corp. 4,100 136,325
Illinois Tool Works, Inc. 6,700 453,087
Ingersoll Rand Co. 6,000 262,500
Pall Corp. 6,300 151,987
Parker-Hannifin Corp. 4,100 173,737
Timken Co. 3,700 143,375
Varity Corp.* 2,900 139,563
---------------
4,243,050
---------------
TOTAL CAPITAL GOODS (7.6%) 22,590,120
---------------
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* 4,400 400,400
Delta Air Lines, Inc. 2,800 232,400
Southwest Airlines Co. 8,700 253,388
---------------
886,188
---------------
APPAREL, TEXTILE (0.6%)
Fruit of the Loom, Inc.* 4,700 119,850
Liz Claiborne, Inc. 3,800 131,575
National Service Industries, Inc. 3,600 140,850
Nike, Inc. 8,000 822,000
Reebok International Ltd. 4,400 147,950
Russell Corp. 4,900 135,362
VF Corp. 3,600 214,650
---------------
1,712,237
---------------
<PAGE>
COMMON STOCKS (Continued):
AUTO RELATED (0.5%)
Cooper Tire & Rubber Co. 5,700 $ 126,825
Dana Corp. 5,300 164,300
Eaton Corp. 4,400 257,950
Echlin, Inc. 3,800 143,925
Genuine Parts Co. 6,400 292,800
Goodyear Tire & Rubber Co. 8,000 386,000
Snap-On Tools Corp. 2,900 137,387
---------------
1,509,187
---------------
AUTOS & TRUCKS (1.9%)
Chrysler Corp. 21,200 1,314,400
Ford Motor Co. 65,600 2,123,800
General Motors Corp. 42,100 2,204,987
Paccar, Inc. 2,200 107,800
---------------
5,750,987
---------------
FOOD SERVICES, LODGING (0.9%)
Harrah's Entertainment, Inc.* 5,300 149,725
Marriott International, Inc. 6,800 365,500
McDonald's Corp. 40,100 1,874,675
Wendy's International, Inc. 7,700 143,413
---------------
2,533,313
---------------
HOUSEHOLD FURNITURE, APPLIANCES (0.4%)
Black & Decker Corp. 4,500 173,813
Maytag Corp. 5,600 116,900
Newell Co. 8,400 257,250
Rubbermaid, Inc. 8,700 237,075
Stanley Works 4,800 142,800
Whirlpool Corp. 3,900 193,538
Zenith Electronic Corp.* 1,205 14,611
---------------
1,135,987
---------------
LEISURE RELATED (1.5%)
American Greetings Corp. 5,400 147,825
Brunswick Corp. 6,000 120,000
CUC International, Inc.* 10,300 365,650
Disney (Walt) Co. 37,800 2,376,675
Fleetwood Enterprises, Inc. 4,700 145,700
Hasbro, Inc. 5,100 182,325
Hilton Hotels Corp. 2,700 303,750
ITT Corp.* 6,200 410,750
Mattel, Inc. 15,943 456,368
---------------
4,509,043
---------------
PHOTO & OPTICAL (0.6%)
Allergan, Inc. 3,500 137,375
Bausch & Lomb, Inc. 3,300 140,250
Eastman Kodak Co. 19,100 1,485,025
Polaroid Corp. 2,500 114,063
---------------
1,876,713
---------------
RETAIL--GENERAL (4.3%)
Circuit City Stores, Inc. 5,500 198,687
Dayton Hudson Corp. 4,100 422,812
Dillard Department Stores, Inc.
(Class A) 6,400 233,600
Federated Department Stores,
Inc.* 11,500 392,437
</TABLE>
B-20
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS (Continued):
Gap, Inc. 16,400 $ 526,850
Harcourt General, Inc. 3,900 195,000
Home Depot, Inc. 27,100 1,463,400
K-Mart Corp. 26,100 322,987
Limited, Inc. 15,500 333,250
Lowe's Cos., Inc. 9,100 328,737
May Department Stores Co. 14,200 621,250
Melville Corp. 5,800 234,900
Mercantile Stores, Inc. 2,200 128,975
Nordstrom, Inc. 4,500 200,250
Penney (J.C.), Inc. 12,700 666,750
Pep Boys Manny Moe & Jack 4,100 139,400
Price/Costco, Inc.* 10,800 233,550
Rite Aid Corp. 4,800 142,800
Sears Roebuck & Co. 22,200 1,079,475
Tandy Corp. 3,600 170,550
TJX Cos., Inc. 4,400 148,500
Toys R Us, Inc.* 15,500 441,750
Tupperware Corp.* 3,300 139,425
Walgreen Co. 14,000 469,000
Wal-Mart Stores, Inc. 130,400 3,308,900
Woolworth Corp.* 7,500 168,750
---------------
12,711,985
---------------
TOTAL CONSUMER CYCLICALS (11.0%) 32,625,640
---------------
CONSUMER NONCYCLICALS
BEVERAGES (4.1%)
Anheuser Busch, Inc. 14,700 1,102,500
Brown Forman Corp. (Class B) 3,700 148,000
Coca-Cola Co. 141,600 6,920,700
Pepsico, Inc. 89,500 3,166,063
Seagram Ltd. 20,900 702,763
---------------
12,040,026
---------------
CONTAINERS (0.2%)
Bemis, Inc. 4,300 150,500
Crown Cork & Seal, Inc. 6,800 306,000
---------------
456,500
---------------
DRUGS (6.1%)
ALZA Corp. (Class A)* 4,600 125,925
American Home Products Corp. 35,400 2,128,425
Amgen, Inc.* 15,000 810,000
Bristol-Myers Squibb Co. 28,500 2,565,000
Lilly (Eli) & Co. 31,200 2,028,000
Merck & Co., Inc. 69,600 4,497,900
Pharmacia & Upjohn, Inc. 28,490 1,264,244
Pfizer, Inc. 35,800 2,555,225
Schering Plough Corp. 20,500 1,286,375
Warner-Lambert Co. 15,200 836,000
---------------
18,097,094
---------------
FOODS (2.5%)
Archer Daniels Midland Co. 29,566 565,450
Campbell Soup Co. 14,200 1,001,100
ConAgra, Inc. 14,000 635,250
CPC International, Inc. 8,300 597,600
Darden Restaurants, Inc. 11,800 126,850
General Mills, Inc. 8,800 479,600
Heinz (H.J.) Co. 21,050 639,394
Hershey Foods Corp. 4,400 322,850
Kellogg Co. 12,400 908,300
<PAGE>
COMMON STOCKS (Continued):
Pioneer Hi Bred International,
Inc. 4,700 $ 248,513
Quaker Oats Co. 7,400 252,525
Ralston Purina Group 5,800 371,925
Sara Lee Corp. 27,500 890,313
Whitman Corp. 5,500 132,688
Wrigley (Wm.), Jr. Co. 6,400 323,200
---------------
7,495,558
---------------
HOSPITAL SUPPLIES & SERVICES (3.9%)
Abbott Laboratories, Inc. 44,700 1,944,450
Bard (C.R.), Inc. 4,100 139,400
Baxter International, Inc. 15,400 727,650
Becton Dickinson & Co. 3,600 288,900
Beverly Enterprises, Inc.* 11,800 141,600
Biomet, Inc.* 11,000 158,125
Boston Scientific Corp.* 9,500 427,500
Columbia/HCA Healthcare Corp. 25,200 1,345,050
Humana, Inc.* 8,900 159,088
Johnson and Johnson 75,400 3,732,300
Manor Care, Inc. 3,700 145,688
Medtronic, Inc. 13,100 733,600
Millinckrodt Group, Inc. 4,100 159,388
Saint Jude Medical, Inc.* 4,450 149,075
Tenet Healthcare Corp.* 11,800 252,225
United Healthcare Corp. 9,800 494,900
U.S. Healthcare, Inc. 8,400 462,000
---------------
11,460,939
---------------
RETAIL--FOOD (0.7%)
Albertsons, Inc. 14,400 595,800
American Stores Co. 8,300 342,375
Giant Food, Inc. (Class A) 4,000 143,500
Kroger Co.* 7,000 276,500
Supervalu, Inc. 4,700 148,050
Sysco Corp. 10,400 356,200
Winn Dixie Stores, Inc. 8,600 304,225
---------------
2,166,650
---------------
SOAPS & TOILETRIES (2.7%)
Avon Products, Inc. 7,600 342,950
Clorox Co. 3,000 265,875
Colgate Palmolive Co. 8,100 686,475
Gillette Corp. 25,400 1,584,325
International Flavors &
Fragrances, Inc. 5,900 280,988
Procter & Gamble Co. 39,200 3,552,500
Unilever N.V. 9,100 1,320,638
---------------
8,033,751
---------------
TOBACCO (2.1%)
American Brands, Inc. 10,000 453,750
Loews Corp. 6,700 528,462
Philip Morris Cos., Inc. 47,300 4,919,200
UST, Inc. 10,600 363,050
---------------
6,264,462
---------------
TOTAL CONSUMER NONCYCLICALS (22.3%) 66,014,980
---------------
CREDIT SENSITIVE
BANKS (6.7%)
Ahmanson (H.F.) & Co. 6,500 175,500
Banc One Corp. 25,780 876,520
</TABLE>
B-21
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS (Continued):
Bank of Boston Corp. 6,200 $ 306,900
Bank of New York Co. 11,300 579,125
BankAmerica Corp. 21,000 1,590,750
Bankers Trust New York Corp. 4,300 317,663
Barnett Banks, Inc. 5,200 317,200
Boatmen's Bancshares, Inc. 8,900 357,113
Chase Manhattan Corp. 24,740 1,747,263
Citicorp. 27,500 2,272,188
Comerica, Inc. 6,700 298,988
CoreStates Financial Corp. 12,600 485,100
Fifth Third Bancorp 5,500 297,000
First Bank Systems 8,300 481,400
First Chicago NBD Corp. 18,149 710,080
First Union Corp. 16,145 982,827
Golden West Financial Corp. 3,100 173,600
Great Western Financial Corp. 7,800 186,225
KeyCorp. 13,400 519,250
Mellon Bank Corp. 7,600 433,200
Morgan (J.P.) & Co., Inc. 10,600 897,025
National City Corp. 12,500 439,063
NationsBank Corp. 16,800 1,388,100
Norwest Corp. 19,900 694,013
PNC Financial Corp. 19,200 571,200
Republic New York Corp. 3,200 199,200
Suntrust Banks, Inc. 12,800 473,600
U.S. Bancorp. 9,100 328,738
Wachovia Corp. 9,600 420,000
Wells Fargo & Co. 5,500 1,313,813
---------------
19,832,644
---------------
FINANCIAL SERVICES (1.8%)
American Express Co. 27,500 1,227,188
Beneficial Corp. 2,800 157,150
Dean Witter Discover & Co. 9,700 555,325
Fleet Financial Group, Inc. 15,079 655,937
Green Tree Financial Corp. 7,800 243,750
Household International, Inc. 5,600 425,600
MBNA Corp. 11,950 340,575
Merrill Lynch & Co., Inc. 10,000 651,250
Morgan Stanley Group, Inc. 8,800 432,300
Salomon, Inc. 5,800 255,200
Transamerica Corp. 3,800 307,800
---------------
5,252,075
---------------
INSURANCE (3.6%)
Aetna Life & Casualty Co. 6,600 471,900
Allstate Corp. 25,538 1,165,171
American General Corp. 11,700 425,588
American International Group,
Inc. 27,050 2,667,806
Aon Corp. 6,000 304,500
Chubb Corp. 10,000 498,750
CIGNA Corp. 4,300 506,863
General Re Corp. 4,700 715,575
ITT Hartford Group, Inc. 6,600 351,450
Jefferson-Pilot Corp. 4,100 211,663
Lincoln National Corp. Industries 5,900 272,875
Marsh & McLennan Cos., Inc. 4,200 405,300
Providian Corp. 5,300 227,238
Safeco Corp. 7,000 247,625
<PAGE>
COMMON STOCKS (Continued):
Saint Paul Cos., Inc. 4,700 $ 251,450
Torchmark Corp. 4,100 179,375
Travelers Group, Inc. 26,900 1,227,313
UNUM Corp. 4,200 261,450
USF&G Corp. 9,100 149,013
---------------
10,540,905
---------------
MORTGAGE RELATED (1.0%)
Federal Home Loan Mortgage Corp. 10,300 880,650
Federal National Mortgage
Association 61,900 2,073,650
---------------
2,954,300
---------------
UTILITY--ELECTRIC (3.2%)
American Electric Power, Inc. 10,500 447,563
Baltimore Gas & Electric Co. 8,100 229,838
Carolina Power & Light Co. 8,700 330,600
Central & South West Corp. 11,700 339,300
Cinergy Corp. 8,913 285,216
Consolidated Edison Co. N.Y.,
Inc. 13,300 389,025
Dominion Resources, Inc. 9,900 396,000
DTE Energy Co. 8,200 253,175
Duke Power Co. 11,600 594,500
Edison International 25,200 444,150
Entergy Corp. 12,900 366,038
FPL Group, Inc. 10,400 478,400
General Public Utilities Corp. 6,600 232,650
Houston Industries, Inc. 14,800 364,450
Niagara Mohawk Power Co. 17,900 138,725
Northern States Power Co. 3,800 187,625
Ohio Edison Co. 8,300 181,563
Pacific Gas & Electric Co. 23,700 551,025
Pacificorp 16,500 367,125
Peco Energy Co. 12,500 325,000
PP&L Resources, Inc. 8,700 205,538
Public Service Enterprise Group 13,800 377,775
Southern Co. 37,600 925,900
Texas Utilities Co. 12,800 547,200
Unicom Corporation 12,100 337,288
Union Electric Co. 5,800 233,450
---------------
9,529,119
---------------
UTILITY--GAS (0.4%)
Columbia Gas System, Inc. 3,100 161,588
Consolidated Natural Gas Co. 5,300 276,925
ENRON Corp. 14,200 580,425
Nicor, Inc. 5,000 141,875
Peoples Energy Corp. 4,500 150,750
---------------
1,311,563
---------------
UTILITY--TELEPHONE (6.8%)
Alltel Corp. 10,700 329,025
Ameritech Corp. 31,400 1,864,375
AT&T Corp. 90,100 5,586,200
Bell Atlantic Corp. 24,800 1,581,000
BellSouth Corp. 56,300 2,385,710
GTE Corp. 54,900 2,456,773
NYNEX Corp. 24,400 1,159,000
Pacific Telesis Group 24,300 820,125
SBC Communications, Inc. 34,600 1,704,050
</TABLE>
B-22
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS (Continued):
Sprint Corp. 24,600 $ 1,033,200
U.S. West Communications Group 25,900 825,560
Worldcom, Inc.* 10,900 603,585
---------------
20,348,603
---------------
TOTAL CREDIT SENSITIVE (23.5%) 69,769,209
---------------
ENERGY
COAL & GAS PIPELINES (0.8%)
Burlington Resources, Inc. 7,000 301,000
Coastal Corp. 5,900 246,325
Pacific Enterprises, Ltd. 5,300 157,012
Panenergy Corp. 8,500 279,437
Praxair, Inc. 8,600 363,350
Sonat, Inc. 4,700 211,500
Tenneco, Inc. 9,600 490,800
Williams Cos., Inc. 5,600 277,200
---------------
2,326,624
---------------
OIL--DOMESTIC (2.1%)
Amerada Hess Corp. 5,200 278,850
Amoco Corp. 28,300 2,048,212
Ashland, Inc. 3,500 138,687
Atlantic Richfield Co. 9,200 1,090,200
Kerr McGee Corp. 2,700 164,363
Louisiana Land & Exploration
Corp. 2,700 155,587
Occidental Petroleum Corp. 17,500 433,125
Oryx Energy Co.* 9,300 151,125
Pennzoil Co. 3,300 152,625
Phillips Petroleum Co. 14,600 611,375
Sun, Inc. 4,882 148,291
Unocal Corp. 13,700 462,375
USX-Marathon Group 15,800 317,975
---------------
6,152,790
---------------
OIL--INTERNATIONAL (5.6%)
Chevron Corp. 37,000 2,183,000
Exxon Corp. 70,000 6,081,250
Mobil Corp. 22,400 2,511,600
Royal Dutch Petroleum Co. (ADR) 30,200 4,643,250
Texaco, Inc. 15,000 1,258,125
---------------
16,677,225
---------------
OIL--SUPPLIES & CONSTRUCTION (0.8%)
Baker Hughes, Inc. 8,100 266,287
Dresser Industries, Inc. 10,300 303,850
Halliburton Co. 6,300 349,650
McDermott International, Inc. 6,900 144,038
Schlumberger, Ltd. 13,700 1,154,225
Western Atlas, Inc.* 2,800 163,100
---------------
2,381,150
---------------
RAILROADS (1.0%)
Burlington Northern Santa Fe 8,251 667,300
Conrail, Inc. 4,400 292,050
CSX Corp. 11,900 574,175
Norfolk Southern Corp. 7,400 627,150
Union Pacific Corp. 11,700 817,536
---------------
2,978,211
---------------
TOTAL ENERGY (10.3%) 30,516,000
---------------
<PAGE>
COMMON STOCKS (Continued):
TECHNOLOGY
ELECTRONICS (3.8%)
Advanced Micro Devices, Inc.* 8,000 $ 109,000
AMP, Inc. 12,400 497,550
Applied Materials, Inc.* 9,900 301,950
Bay Networks, Inc.* 10,100 260,075
Cisco Systems, Inc.* 31,100 1,761,037
EMC Corp.* 12,900 240,263
General Instrument Corp.* 6,800 196,350
Harris Corp. 2,300 140,300
Intel Corp. 46,700 3,429,530
ITT Industries, Inc. 6,700 168,338
LSI Logic Corp.* 7,300 189,800
Micron Technology, Inc. 11,400 294,975
Motorola, Inc. 33,600 2,112,600
National Semiconductor Corp.* 9,100 141,050
Perkin-Elmer Corp. 2,600 125,450
Texas Instruments, Inc. 10,700 533,662
Tyco International, Ltd. 8,400 342,300
3Com Corp.* 9,000 411,750
---------------
11,255,980
---------------
OFFICE EQUIPMENT (3.4%)
Amdahl Corp.* 12,600 135,450
Apple Computer, Inc. 6,800 142,800
Ceridian Corp.* 3,500 176,750
Compaq Computer Corp.* 15,000 738,750
Digital Equipment Corp.* 8,400 378,000
Hewlett-Packard Co. 29,000 2,889,125
Honeywell, Inc. 7,200 392,400
International Business Machines
Corp. 32,200 3,187,800
Pitney Bowes, Inc. 8,600 410,650
Sun Microsystems, Inc.* 10,200 600,525
Tandem Computers, Inc.* 11,700 144,786
Unisys Corp.* 3,200 22,800
Xerox Corp. 18,300 979,050
---------------
10,198,886
---------------
OFFICE EQUIPMENT SERVICES (3.0%)
Autodesk, Inc. 4,000 119,500
Automatic Data Processing, Inc. 16,400 633,450
Computer Associates
International, Inc. 13,600 969,000
Computer Sciences Corp.* 3,200 239,200
First Data Corp. 12,600 1,003,275
Microsoft Corp.* 33,600 4,036,200
Novell, Inc.* 20,200 280,275
Oracle Corp.* 36,925 1,456,230
Silicon Graphics, Inc.* 8,900 213,600
---------------
8,950,730
---------------
TELECOMMUNICATIONS (1.2%)
AirTouch Communications, Inc.* 27,900 788,175
Andrew Corp.* 3,375 181,406
Cabletron Systems, Inc.* 4,100 281,363
Cox Communications, Inc.
(Class A)* 95 2,054
DSC Communications Corp.* 6,100 183,763
MCI Communications Corp. 38,600 989,125
Northern Telecommunications Ltd. 14,400 783,000
</TABLE>
B-23
<PAGE>
THE HUDSON RIVER TRUST
EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- ---------------
<S> <C> <C>
COMMON STOCKS (Continued):
Tellabs, Inc.* 4,900 $ 327,688
---------------
3,536,574
---------------
TOTAL TECHNOLOGY (11.4%) 33,942,170
---------------
DIVERSIFIED
MISCELLANEOUS (1.4%)
Alco Standard Corp. 7,200 325,800
Allied Signal, Inc. 16,000 914,000
Corning, Inc. 12,100 464,337
Dial Corp. 5,300 151,713
Minnesota Mining & Manufacturing
Co. 23,900 1,649,100
Ogden Corp. 7,200 130,500
Teledyne, Inc. 4,000 144,500
Textron, Inc. 4,800 383,400
---------------
TOTAL DIVERSIFIED (1.4%) 4,163,350
---------------
TOTAL COMMON STOCKS (96.1%)
(Cost $246,689,250) 285,152,899
---------------
PRINCIPAL
AMOUNT VALUE (NOTE 1)
- ----------------------------- ------------ --------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank:
5.3%, due 07/01/96 $6,700,000 $ 6,698,027
5.26%, due 07/15/96 1,500,000 1,496,493
U.S. Treasury
4.94%, due 08/22/96 500,000 496,295
--------------
TOTAL U.S. GOVERNMENT (2.9%) 8,690,815
--------------
TOTAL SHORT-TERM DEBT SECURITIES (2.9%)
(Amortized Cost $8,690,815) 8,690,815
--------------
TOTAL INVESTMENTS (99.0%)
(Cost/Amortized Cost $255,380,065) 293,843,714
CASH AND RECEIVABLES
LESS LIABILITIES (1.0%) 2,979,507
--------------
NET ASSETS (100.0%) $296,823,221
==============
</TABLE>
- -------------
Financial Futures Contracts outstanding at June 30, 1996:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE 6/30/96 APPRECIATION
- --------------------- ------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
LONG S & P 500 INDEX* 9/96 25 $8,413,975 $8,460,000 $46,025
</TABLE>
- ------------
* Non-income producing.
See Notes to Financial Statements.
B-24
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE (NOTE 1)
- -------------------------------- ------------ --------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.2%)
Grace (W.R.) & Co. .............. 231,100 $ 16,379,213
Monsanto Co. .................... 1,655,000 53,787,500
--------------------------
70,166,713
--------------------------
CHEMICALS--SPECIALTY (0.8%)
Great Lakes Chemical Corp. ..... 733,900 45,685,275
--------------------------
TOTAL BASIC MATERIALS (2.0%) .. 115,851,988
--------------------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
WMX Technologies, Inc. .......... 710,000 23,252,500
--------------------------
PRINTING, PUBLISHING &
BROADCASTING (6.0%)
Chris Craft Industries, Inc.
(Class B)*++ ................... 1,225,444 53,919,536
Comcast Corp. (Class A) SPL .... 751,800 13,908,300
Donnelley (R.R.) & Sons Co. .... 1,632,200 56,922,975
TCI Group (Class A)* ............ 8,614,236 156,133,028
Liberty Media Group (Class A)* . 1,424,309 37,744,189
U.S. West Media Group* .......... 1,230,000 22,447,500
--------------------------
341,075,528
--------------------------
TOTAL BUSINESS SERVICES (6.4%) 364,328,028
--------------------------
CAPITAL GOODS
AEROSPACE (0.4%)
Loral Space &
Communications* (a) ............ 1,565,000 21,323,125
--------------------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.1%)
Louisiana Pacific Corp. ......... 200,000 4,425,000
--------------------------
ELECTRICAL EQUIPMENT (0.6%)
Westinghouse Electric Corp. .... 2,095,000 39,281,250
--------------------------
TOTAL CAPITAL GOODS (1.1%) .... 65,029,375
--------------------------
CONSUMER CYCLICALS
AUTOS & TRUCKS (0.7%)
Autozone, Inc.* ................. 1,100,000 38,225,000
--------------------------
FOOD SERVICES, LODGING (0.2%)
McDonald's Corp. ................ 253,000 11,827,750
--------------------------
LEISURE RELATED (3.7%)
CUC International, Inc.* (a) ... 1,245,000 44,197,500
Disney (Walt) Co. ............... 318,000 19,994,250
Hasbro, Inc. .................... 333,800 11,933,350
ITT Corp.* ...................... 1,984,800 131,493,000
--------------------------
207,618,100
--------------------------
PHOTO & OPTICAL (2.0%)
Eastman Kodak Co. ............... 1,462,700 113,724,925
--------------------------
RETAIL--GENERAL (6.4%)
Federated Department Stores,
Inc.* .......................... 380,000 12,967,500
Home Depot, Inc. ................ 1,701,000 91,854,000
Lowe's Cos., Inc. ............... 2,666,400 96,323,700
<PAGE>
COMMON STOCKS (Continued):
Sears Roebuck & Co. ............. 2,381,500 $115,800,438
Tandy Corp. ..................... 76,500 3,624,188
Wal-Mart Stores, Inc. ........... 1,766,000 44,812,250
--------------------------
365,382,076
--------------------------
TOTAL CONSUMER CYCLICALS (13.0%) 736,777,851
--------------------------
CONSUMER NONCYCLICALS
BEVERAGES (0.1%)
Pepsico, Inc. ................... 89,500 3,166,063
--------------------------
DRUGS (3.4%)
Amgen, Inc.* .................... 270,000 14,580,000
Astra AB (A Shares) ............. 1,315,000 58,180,297
Merck & Co., Inc. ............... 1,132,000 73,155,500
Pfizer, Inc. .................... 687,000 49,034,625
--------------------------
194,950,422
--------------------------
HOSPITAL SUPPLIES & SERVICES (3.3%)
Abbott Laboratories, Inc. ...... 1,150,000 50,025,000
Baxter International, Inc. ..... 300,000 14,175,000
Boston Scientific Corp.* ........ 70,100 3,154,500
Columbia/HCA Healthcare Corp. .. 105,320 5,621,455
Healthsource, Inc.* (a) ......... 818,000 14,315,000
Medtronic, Inc. ................. 445,100 24,925,600
United Healthcare Corp. (a) .... 1,258,500 63,554,250
U.S. Healthcare, Inc. ........... 207,150 11,393,250
--------------------------
187,164,055
--------------------------
TOBACCO (7.4%)
Loews Corp. ..................... 2,204,500 173,879,938
Philip Morris Cos., Inc. ........ 2,313,300 240,583,200
RJR Nabisco Holdings Corp. ..... 200,000 6,200,000
--------------------------
420,663,138
--------------------------
TOTAL CONSUMER NONCYCLICALS (14.2%) 805,943,678
--------------------------
CREDIT SENSITIVE
BANKS (1.6%)
Chase Manhattan Corp. ........... 711,768 50,268,615
CoreStates Financial Corp. ..... 400,000 15,400,000
First Union Corp. ............... 415,000 25,263,125
--------------------------
90,931,740
--------------------------
FINANCIAL SERVICES (1.1%)
American Express Co. ............ 475,000 21,196,875
Dean Witter Discover & Co. ..... 216,283 12,382,202
Fleet Financial Group, Inc. .... 150,861 6,562,454
MBNA Corp. ...................... 300,000 8,550,000
Student Loan Marketing
Association .................... 171,000 12,654,000
--------------------------
61,345,531
--------------------------
INSURANCE (13.9%)
Allstate Corp. .................. 2,151,647 98,168,894
American International Group,
Inc. ........................... 2,540,050 250,512,430
Berkley (W.R.) Corp. ............ 73,143 3,053,720
ITT Hartford Group, Inc. ........ 1,576,500 83,948,625
</TABLE>
B-25
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE (NOTE 1)
- -------------------------------- ------------ --------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
PMI Group, Inc. ................. 648,100 $ 27,544,250
Progressive Corp. ............... 1,404,700 64,967,375
TIG Holdings, Inc. .............. 1,143,300 33,155,700
Travelers Group, Inc. ........... 5,006,649 228,428,361
--------------------------
789,779,355
--------------------------
MORTGAGE RELATED (0.6%)
Federal National Mortgage
Association .................... 998,000 33,433,000
--------------------------
REAL ESTATE (3.2%)
CBL & Associates Properties,
Inc.++ ......................... 1,097,200 24,549,850
Columbus Realty Trust ........... 210,000 4,068,750
Essex Property Trust, Inc.++ ... 355,000 7,632,500
First Industrial Realty Trust .. 213,000 5,005,500
Gables Residential Trust ........ 194,000 4,559,000
Macerich Co. .................... 717,500 15,067,500
Manufactured Home Communities .. 338,000 6,506,500
Paragon Group, Inc. ............. 162,800 2,665,850
Regency Realty Corp.++ .......... 768,700 16,142,700
Shurgard Storage Centers, Inc.
(Class A) ...................... 169,000 4,267,250
Simon Property Group, Inc. ..... 1,443,000 35,353,500
Spieker Properties, Inc. ........ 1,307,200 35,621,200
Summit Properties, Inc. ......... 529,100 10,383,587
Sun Communities, Inc. ........... 161,000 4,326,875
Walden Residential Properties,
Inc. ........................... 185,000 3,769,375
--------------------------
179,919,937
--------------------------
UTILITY--TELEPHONE (0.3%)
AT&T Corp. ...................... 300,000 18,600,000
BellSouth Corp. ................. 10,824 458,667
--------------------------
19,058,667
--------------------------
TOTAL CREDIT SENSITIVE (20.7%). 1,174,468,230
--------------------------
ENERGY
OIL--SUPPLIES & CONSTRUCTION (0.7%)
Western Atlas, Inc.* ............ 713,800 41,578,850
--------------------------
RAILROADS (1.7%) ................
Southern Pacific Rail Corp.* ... 524,500 13,112,500
Union Pacific Corp. ............. 1,200,000 83,850,000
--------------------------
96,962,500
--------------------------
TOTAL ENERGY (2.4%) ............ 138,541,350
--------------------------
TECHNOLOGY
OFFICE EQUIPMENT (2.8%)
Ceridian Corp.* ................. 625,400 31,582,700
Compaq Computer Corp.* .......... 800,000 39,400,000
Dell Computer Corp.* (a) ........ 613,700 31,221,987
<PAGE>
COMMON STOCKS (Continued):
Digital Equipment Corp.* ........ 121,500 $ 5,467,500
Sterling Software, Inc.* ........ 379,200 29,198,400
Xerox Corp. ..................... 390,300 20,881,050
--------------------------
157,751,637
--------------------------
ELECTRONICS (22.6%)
Altera Corp.* (a) ............... 2,000,000 76,000,000
Applied Materials, Inc.* (a) ... 350,000 10,675,000
Bay Networks, Inc.* (a) ......... 2,251,900 57,986,425
Cisco Systems, Inc.* (a) ........ 7,233,000 409,568,625
EMC Corp.* ...................... 3,765,900 70,139,887
General Instrument Corp.* ...... 3,297,418 95,212,945
ITT Industries, Inc. ............ 1,584,500 39,810,563
Intel Corp. ..................... 946,800 69,530,625
Motorola, Inc. (a) .............. 1,691,800 106,371,925
National Semiconductor Corp.* .. 3,189,400 49,435,700
Seagate Technology, Inc.* ...... 430,000 19,350,000
Texas Instruments, Inc. (a) .... 2,322,500 115,834,687
3Com Corp.* (a) ................. 3,625,200 165,852,900
--------------------------
1,285,769,282
--------------------------
OFFICE EQUIPMENT SERVICES (6.3%)
Electronic Data Systems Corp. .. 1,560,000 83,850,000
Informix Corp.* (a) ............. 1,860,000 41,850,000
Microsoft Corp.* ................ 327,000 39,280,875
Oracle Corp.* (a) ............... 4,957,200 195,499,575
--------------------------
360,480,450
--------------------------
TELECOMMUNICATIONS (7.9%)
AirTouch Communications, Inc.* . 3,504,600 99,004,950
Cabletron Systems, Inc.* (a) ... 614,700 42,183,787
DSC Communications Corp.* (a) .. 1,665,800 50,182,225
MCI Communications Corp. ........ 1,286,000 32,953,750
Mannesmann AG (ADR) ............. 500,700 172,240,800
Newbridge Networks Corp.* (a) .. 340,000 22,270,000
Nokia Corp. (ADR) ............... 439,000 16,243,000
Rogers Cantel Mobile
Commmunications, Inc.
(Class B) (ADR)* ............... 235,000 5,493,125
Vodafone Group PLC (ADR) ........ 190,000 7,006,250
--------------------------
447,577,887
--------------------------
TOTAL TECHNOLOGY (39.6%) ...... 2,251,579,256
--------------------------
DIVERSIFIED
MISCELLANEOUS (0.3%)
Anixter International, Inc.* ... 812,434 12,084,955
Hanson PLC (ADR)--Warrants
(Class B)* ..................... 48,368,779 3,023,048
--------------------------
TOTAL DIVERSIFIED (0.3%) ...... 15,108,003
--------------------------
TOTAL COMMON STOCKS (99.7%)
(Cost $4,525,422,310) .......... 5,667,627,759
--------------------------
</TABLE>
B-26
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------- ------------- --------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
TECHNOLOGY
ELECTRONICS (0.3%)
General Instrument Corp.
5.0% Conv., 06/15/00 ........ $10,953,000 $ 13,499,573
3Com Corp.
10.25% Conv., 11/01/01+ .... 900,000 1,406,250
--------------
TOTAL TECHNOLOGY (0.3%) .... 14,905,823
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.3%)
(Amortized Cost $15,559,192) 14,905,823
--------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (0.1%)
Working Capital
Management Corp.
5.52%, due 07/19/96 ......... 7,000,000 6,978,533
--------------
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
5.6875%, due 07/01/96 ....... 15,000,000 15,000,000
Sumitomo Bank
5.50%, due 07/01/96 ......... 17,400,000 17,400,000
--------------
TOTAL TIME DEPOSITS (0.6%) . 32,400,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (0.7%)
(Amortized Cost $39,378,533) 39,378,533
--------------
TOTAL INVESTMENTS (100.7%)
(Cost/Amortized Cost $4,580,360,035) 5,721,912,115
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS(B)
------------
<S> <C> <C>
OPTIONS WRITTEN**:
Altera Corp.:
July 46.75 Call* ....... 2,000 (44,000)
July 50.125 Call* ...... 2,000 (28,000)
August 46.625 Call* ... 2,000 (156,000)
August 47.625 Call* ... 2,000 (79,800)
August 48.188 Call* ... 2,000 (112,000)
September 39.75 Call* . 2,000 (756,000)
September 42.25 Call* . 2,000 (405,600)
September 42.375 Call* 2,000 (538,000)
Applied Materials, Inc.:
August 35.625 Call* ... 1,000 (72,000)
August 38.75 Call* .... 1,000 (17,000)
August 38.875 Call* ... 1,500 (36,000)
Bay Networks, Inc.
August 30.25 Call* .... 2,000 (250,200)
Cabletron Systems, Inc.:
July 67.50 Call* ....... 2,000 (704,000)
July 68.625 Call* ...... 1,000 (299,000)
July 74.375 Call* ...... 2,000 (276,000)
Cisco Systems, Inc.:
July 50.75 Call* ....... 1,500 (978,000)
July 51.375 Call* ...... 2,000 (1,198,000)
August 52.25 Call* .... 4,000 (2,396,000)
August 54.50 Call* .... 2,000 (992,000)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- ----------------------------- ------------ ---------------
<S> <C> <C>
OPTIONS WRITTEN** (Continued):
August 55 Call* ............. 2,000 $ (946,000)
August 55.125 Call* ......... 2,000 (938,600)
August 56.125 Call* ......... 2,000 (744,000)
August 56.25 Call* .......... 2,500 (922,500)
September 55.875 Call* ..... 3,000 (1,287,000)
CUC International, Inc.
September 36.75 Call* ....... 1,000 (193,000)
Dell Computer Corp.
August 50.50 Call* .......... 1,000 (460,000)
DSC Communications Corp.
September 28.625 Call* ..... 3,000 (1,233,000)
Healthsource, Inc.
August 31.25 Call* .......... 2,000 (18,000)
Informix Corp.:
July 25.50 Call* ............ 1,500 (69,000)
July 25.875 Call* ........... 1,000 (55,600)
August 24.625 Call* ......... 3,100 (313,100)
August 24.875 Call* ......... 1,500 (144,450)
August 25 Call* ............. 2,000 (237,400)
Loral Space & Communications
August 17.375 Call* ......... 2,000 (48,000)
Motorola, Inc.
July 53 Call* ............... 2,500 (2,477,500)
Newbridge Networks Corp.:
July 63.875 Call* ........... 1,000 (436,000)
August 69.375 Call* ......... 1,000 (242,000)
September 64 Call* .......... 1,400 (862,400)
Oracle Corp.:
July 31 Call* ............... 3,000 (2,562,000)
July 31.50 Call* ............ 1,500 (1,791,450)
July 33 Call* ............... 2,000 (1,323,800)
July 33.875 Call* ........... 3,000 (1,755,000)
July 34.125 Call* ........... 3,000 (1,675,500)
July 34.375 Call* ........... 2,000 (1,092,000)
August 33.625 Call* ......... 2,000 (1,280,000)
August 34.875 Call* ......... 2,250 (1,262,250)
August 35.125 Call* ......... 3,000 (1,564,200)
August 35.25 Call* .......... 6,750 (3,483,000)
August 35.875 Call* ......... 3,000 (1,458,000)
September 33.125 Call* ..... 2,000 (1,443,600)
September 33.50 Call* ....... 2,250 (1,649,250)
September 33.875 Call* ..... 1,500 (1,030,500)
September 34.50 Call* ....... 1,500 (942,000)
September 37 Call* .......... 2,500 (1,142,750)
September 37.25 Call* ....... 3,000 (1,325,700)
Texas Instruments, Inc.:
July 52.625 Call* ........... 1,500 (49,650)
July 57.125 Call* ........... 1,500 (36,000)
August 53.625 Call* ......... 2,000 (204,800)
August 54.75 Call* .......... 2,000 (190,000)
August 54.75 Call* .......... 2,000 (194,000)
August 55 Call* ............. 2,000 (174,000)
August 55 Call* ............. 4,000 (322,800)
August 55.625 Call* ......... 2,000 (134,000)
September 51.875 Call* ..... 2,000 (589,200)
</TABLE>
B-27
<PAGE>
THE HUDSON RIVER TRUST
COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------- ------------- --------------
<S> <C> <C>
OPTIONS WRITTEN** (Continued):
United Healthcare Corp.
August 54.25 Call* .......... 1,500 $ (202,500)
3Com Corp.:
July 45 Call* ............... 2,000 (526,000)
July 45.875 Call* ........... 2,000 (556,000)
August 47.375 Call* ......... 1,500 (273,000)
August 48.75 Call* .......... 2,000 (1,198,000)
August 49.50 Call* .......... 2,000 (496,000)
September 46.50 Call* ....... 2,000 (876,000)
September 47.875 Call* ..... 1,500 (446,700)
September 48.50 Call* ....... 2,000 (606,000)
September 49.625 Call* ..... 2,000 (444,800)
September 50 Call* .......... 1,500 (375,000)
---------------
TOTAL OPTIONS WRITTEN (-1.0%)
(Premiums Received $60,957,930) (55,640,600)
---------------
CASH AND RECEIVABLES
LESS LIABILITIES (0.3%) .... 16,016,140
---------------
NET ASSETS (100.0%) .......... $5,682,287,655
===============
</TABLE>
- ------------
* 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.
See Notes to Financial Statements.
B-28
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.5%)
Bayer AG 40,000 $ 1,408,608
Dainippon Ink & Chemical, Inc. 203,000 1,042,500
Freeport-McMoRan, Inc. 20,000 710,000
Grace (W.R.) & Co. 22,500 1,594,688
Indo Gulf Fertilisers (GDR) 150,000 202,500
Ishihara Sangyo Ltd.* 532,000 2,119,541
Monsanto Co. 50,000 1,625,000
Sanyo Chemicals 24,000 247,818
Sekisui Chemical Co. Ltd. 175,000 2,142,825
Shin-Etsu Chemical Ltd. 18,850 361,722
SKW Trostberg AG* 45,000 1,189,623
Tessenderlo Chemie 1,430 518,598
-------------
13,163,423
-------------
CHEMICALS--SPECIALTY (1.8%)
Asahi Glass Co. Ltd. 60,000 718,235
Great Lakes Chemical Corp. 38,400 2,390,400
SGL Carbon AG+ 91,100 10,723,638
UCAR International, Inc.* 40,000 1,665,000
-------------
15,497,273
-------------
METALS & MINING (0.5%)
Johnson Matthey PLC 40,000 386,511
Plutonic Resources Ltd. 50,000 255,434
Tubos de Acero de Mexico S.A.
(ADR)* 112,400 1,060,775
Western Mining Corp. Ltd. 200,000 1,430,429
Westralian Sands Ltd. 280,000 941,882
-------------
4,075,031
-------------
PAPER (0.5%)
Asia Pacific Resources
International Holdings Ltd. (Class
A)* 70,000 525,000
Chuoh Pack Industries Ltd. 5,000 36,323
Enso-Gutzeit (Series R) 124,000 966,270
Fletcher Forestry Shares 17,026 21,176
Grupo Industrial Durango (ADR)* 70,000 708,750
Mayr-Melnhof Karton Aktien*+ 24,000 1,033,815
New Oji Paper Co. 90,000 777,996
Nippon Paper Industries Co. 32,000 200,302
-------------
4,269,632
-------------
STEEL (0.9%)
Acerinox S.A. 5,000 521,543
British Steel 400,000 1,022,203
Hitachi Metals Ltd. 171,000 1,968,840
SSAB Svenskt Stal (Class B) 50,000 649,308
Sumitomo Metal Industries 1,135,000 3,484,808
-------------
7,646,702
-------------
TOTAL BASIC MATERIALS (5.2%) 44,652,061
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.2%)
Daiseki Co. Ltd.* 30,000 827,889
Powerscreen International 640,000 4,533,734
Tomra Systems 344,700 3,504,776
WMX Technologies, Inc. 44,000 1,441,000
-------------
10,307,399
-------------
<PAGE>
COMMON STOCKS (Continued):
PRINTING, PUBLISHING & BROADCASTING
(3.4%)
Carlton Communications PLC 140,000 $ 1,126,598
Comcast Corp. (Class A) SPL 56,000 1,036,000
Elsevier N.V. 280,000 4,252,447
Liberty Media Group (Class A)* 73,250 1,941,125
Mirror Group Newspapers PLC 300,000 955,403
Nippon Television Network Corp. 16,690 5,185,361
Reed International 70,000 1,171,184
TCI Group (Class A)* 451,000 8,174,375
Television Broadcasts 50,000 187,643
TVI Televisao Independente* 4,700 14,062
U.S. West Media Group* 112,000 2,044,000
Ver Ned Uitgeversbedr Ver
Bezit N.V. 200,000 3,107,828
-------------
29,196,026
-------------
PROFESSIONAL SERVICES (0.7%)
Apcoa Parking AG 20,000 1,815,013
Asatsu, Inc. 43,100 1,870,745
Automated Security Holdings* 153,125 88,016
Prosegur Compania Securidad* 862 30,308
WPP Group PLC 600,000 2,004,015
-------------
5,808,097
-------------
TRUCKING, SHIPPING (1.0%)
Brambles Industries Ltd. 140,000 1,945,384
Irish Continental Group 155,000 1,440,301
Kawasaki Kisen* 292,000 987,253
Western Bulk Shipping*+ 94,500 436,745
Yamato Transport 369,000 4,349,705
-------------
9,159,388
-------------
TOTAL BUSINESS SERVICES (6.3%) 54,470,910
-------------
CAPITAL GOODS
AEROSPACE (0.4%)
Loral Space & Communications* 188,000 2,561,500
Swire Pacific Ltd. (Class A) 100,000 855,860
-------------
3,417,360
-------------
BUILDING & CONSTRUCTION (3.1%)
ABB AG 3,000 3,715,200
Bam Groep Holdings 1,000 59,225
Boral Ltd. 208,883 541,766
Bufete Industrial S.A. (ADR)* 20,000 347,500
Fomento de Construcciones Y
Contratas S.A. 5,000 414,109
Fujikura Ltd. 170,000 1,410,518
Fukuda Corp. 15,000 141,180
Hitachi Plant Engineering &
Construction Co.* 137,000 1,095,399
Japan Industrial Land Development 37,000 1,159,684
Kajima Corp. 111,000 1,146,160
Kaneshita Construction Co. 129,000 1,650,295
MacMahon Holdings Ltd. 2,000,000 1,320,396
Metacorp Berhard 90,000 259,772
Mitsui Home Co. Ltd. 23,000 374,103
Nanno Construction Co. Ltd.* 48,000 557,043
National House Industrial Co. 40,000 625,029
Ohmoto Gumi Co. Ltd. 46,000 933,157
</TABLE>
B-29
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
Oriental Construction Co. 82,800 $ 1,384,603
Paul Y.-ITC Construction Holdings 500,000 118,206
Paul Y.-ITC Construction
Holdings--Warrants* 100,000 2,254
Penta Ocean Construction 37,000 249,856
PS Corp. 115,800 2,222,140
Royal Plastics Group Ltd.*+ 50,000 759,934
Sacos Corp. 24,200 386,988
Sawako Corp.* 4,000 138,895
Sekisui House--Warrants* 20 55
Sho Bond Construction 82,800 3,102,115
Suido Kiko Kaisha 34,000 366,610
Toda Construction 123,000 1,202,632
Wesco, Inc. 36,500 1,023,941
-------------
26,708,765
-------------
BUILDING MATERIALS & FOREST
PRODUCTS (1.1%)
Advan Co. 9,000 439,987
BPB Industries PLC 540,000 2,676,059
Lafarge Canada 7,000 142,282
Lafarge Corp. 33,000 1,998,250
Louisiana Pacific Corp. 47,000 1,039,875
Macmillan Bloedel Ltd. 30,000 397,730
Nichiha Corp. 60,200 1,221,218
Sumitomo Forestry Co. 110,000 1,638,416
-------------
9,553,817
-------------
ELECTRICAL EQUIPMENT (1.3%)
Alcatel Alsthom 30,000 2,618,458
Omron Corp. 225,000 4,790,515
UUNET Technologies, Inc.* 4,400 291,500
Vae Eisenbahnsys AG 3,183 300,392
Westinghouse Electric Corp. 168,000 3,150,000
-------------
11,150,865
-------------
MACHINERY (3.4%)
Asahi Diamond
Industry Co. Ltd. 90,370 1,180,875
Aviation Sales Company* 31,000 635,500
BT Industries AB+ 80,000 1,232,176
Construcciones Auxiliar Ferro 9,425 359,369
Fag Kugelfischer Georg Schaefer 2,000 299,872
IHC Caland N.V. 52,000 2,561,320
Kalmar Industries AB+ 70,000 1,469,249
Keppel Corp. * 120,000 1,003,544
Keyence Corp. 20,200 2,750,308
Kurita Water Industries 500 12,199
Makino Milling Machine Co. 44,000 446,292
Mitsubishi Heavy Industries Ltd. 540,000 4,702,517
Namura Shipbuilding Co. 46,000 260,611
Nippon Seiko K.K. 16,000 121,204
Nireco* 8,000 153,516
Nitta Corp. 115,000 2,154,247
Nitto Kohki Co. Ltd. 9,000 411,203
Siebe PLC 100,000 1,419,899
SMC Corp. 51,600 3,998,427
Sodick Co. * 263,000 3,148,262
Yaskawa Electric Corp. * 260,000 1,273,450
-------------
29,594,040
-------------
TOTAL CAPITAL GOODS (9.3%) 80,424,847
-------------
<PAGE>
COMMON STOCKS (Continued):
CONSUMER CYCLICALS
AIRLINES (0.9%)
British Airways 270,000 $ 2,323,725
KLM 100,000 3,201,649
Qantas Airways Ltd. 15,000 25,347
Singapore Airlines Ltd. 250,000 2,639,972
-------------
8,190,693
-------------
APPAREL, TEXTILE (0.4%)
Adidas AG+ 7,000 583,468
Carli Gry International A/S* 10,000 327,685
Chargeurs SA 4,400 1,229,956
First Sign International
Holdings Ltd.* 2,630,000 560,605
King Co.* 39,000 275,835
Renown, Inc.* 27,000 108,311
-------------
3,085,860
-------------
AUTOS & TRUCKS (1.1%)
Autozone, Inc.* 92,000 3,197,000
Honda Motor Corp. 201,000 5,216,247
Toyota Motor Corp. 37,000 926,395
-------------
9,339,642
-------------
AUTO RELATED (0.9%)
Autoliv AB 64,000 1,952,153
Autoliv AB (ADS)*+ 23,700 705,075
Mabuchi Motor Co. 11,000 701,604
Michelin (CGDE), (Class B) 40,000 1,956,359
Minebea Co. 246,000 2,070,325
-------------
7,385,516
-------------
FOOD SERVICES, LODGING (0.2%)
AAPC Limited 1,500,000 943,140
International Fast Food Corp. * 8,000 1,500
McDonald's Corp. 14,000 654,500
QPQ Corp. * 32,700 65,400
QPQ Corp. --Warrants* 32,700 8,175
-------------
1,672,715
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.6%)
Alpine Electronics 9,000 168,593
Hunter Douglas N.V. 37,000 2,527,603
Industrie Natuzzi (ADR) 60,000 3,075,000
Matsushita Electric Industrial Co. 100,000 1,864,120
Morishita Co. Ltd. 11,000 106,547
Nippon Electric Glass 174,000 2,973,272
Philips Electronics 28,500 927,511
Philips Electronics N.V. (ADR) 3,000 97,875
Sanyo Electric Co. Ltd. 412,000 2,518,646
-------------
14,259,167
-------------
LEISURE RELATED (3.4%)
Cinar Films, Inc. (Class B)* 48,000 1,044,000
CUC International, Inc.* 100,000 3,550,000
Disney (Walt) Co. 17,000 1,068,875
Hasbro, Inc. 38,000 1,358,500
Helicopter Line Ltd. 600,000 1,154,412
ITT Corp. * 111,200 7,367,000
Namco Ltd. 79,500 2,637,045
Nelvana Limited*+++ 135,800 2,387,255
Nintendo Co. 18,000 1,342,167
</TABLE>
B-30
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
Rank Organisation PLC 100,000 $ 773,643
Thorn EMI 15,000 418,047
Turner Broadcasting
Systems (Class B) 73,000 2,007,500
Yamaha Corp. 261,000 4,316,808
-------------
29,425,252
-------------
PHOTO & OPTICAL (0.5%)
Eastman Kodak Co. 29,300 2,278,075
Luxottica Group (ADR) 20,000 1,467,500
Noritsu Koki Co. Ltd.* 6,000 303,742
-------------
4,049,317
-------------
RETAIL--GENERAL (5.3%)
Ado Electronic
Industrial Co., Ltd. 11,000 334,719
Asda Group PLC 500,000 904,914
Centros Comerciales Pryca S.A. 75,000 1,875,212
Coles Myer Ltd. 800,000 2,904,871
Dai-Ichi Corp. 12,300 357,418
Doshisha Co. 47,000 1,584,776
Eiden Sakakiya Co. Ltd. 51,000 713,026
Federated Department Stores, Inc.* 35,000 1,194,375
Fu Hui Jewellery* 900,000 22,556
Homac Corp. 27,800 642,701
Home Centers Ltd.* 142,800 925,969
Home Depot, Inc. 91,000 4,914,000
Home Wide Corp., Inc. 1,000 15,077
Isetan Co. 232,000 3,519,167
Lowe's Cos., Inc. 140,300 5,068,338
Matsuyadenki Co. Industries 6,000 87,723
MFI Furniture PLC 100,000 270,309
Nissen Corp. Ltd. 54,300 818,705
Paris Miki, Inc. 57,900 2,698,314
Rinascente 175,000 1,253,938
Sato Corp. 68,700 1,688,701
Sears Roebuck & Co. 123,300 5,995,462
Shimamura Co. Ltd. 9,100 400,804
Sriwani Holdings BHD* 639,000 1,111,750
Swank International Manufacturing 1,400,000 244,162
Wal-Mart Stores, Inc. 177,000 4,491,375
Warehouse Group Ltd. 846,250 1,511,902
Xebio Co. 31,100 1,168,008
-------------
46,718,272
-------------
TOTAL CONSUMER CYCLICALS (14.3%) 124,126,434
-------------
CONSUMER NONCYCLICALS
BEVERAGES (1.3%)
Grand Metropolitan 300,000 1,990,034
Guinness PLC 650,000 4,725,747
Lion Nathan Ltd. 600,000 1,570,825
Panamerican Beverages 30,000 1,342,500
Pepsico, Inc. 4,700 166,263
Pernod-Ricard 400 25,660
Quilmes Industrial Quins (ADR)* 131,100 1,343,775
-------------
11,164,804
-------------
<PAGE>
COMMON STOCKS (Continued):
FOODS (0.3%)
Nestle AG 500 $ 571,600
NV (Verenigde Bed) Nutricia+ 2,900 306,942
Shriram Industrial
Enterprises Ltd.--Warrants* 55,000 0
Shriram Industrial
Enterprises Ltd.+ 165,000 660,000
Viscofan Envoltura 60,000 949,326
-------------
2,487,868
-------------
DRUGS (4.9%)
Amgen, Inc.* 14,000 756,000
Astra AB (A Shares) 40,000 1,769,743
Biogen, Inc.* 33,000 1,810,875
Cochlear Ltd.+ 50,400 132,700
Hafslund Nycomed ASA 90,000 568,462
Merck & Co., Inc. 59,000 3,812,875
Novo-Nordisk AS (ADR) 22,900 3,243,907
Nycomed ASA (B Shares)* 90,000 1,247,843
Pfizer, Inc. 35,000 2,498,125
Roche Holdings AG Genusscheine 800 6,108,800
Sandoz AG 1,110 1,270,728
Sandoz Ltd. (ADR) 20,000 1,143,298
Sankyo Co. 95,000 2,465,390
Santen Pharmaceutical Co. 169,000 3,937,953
Taisho Pharmaceutical Co. 73,000 1,580,938
Takeda Chemical Industries 110,000 1,950,016
Yamanouchi Pharmaceutical 180,000 3,914,652
Zeneca Group PLC 180,000 3,979,135
-------------
42,191,440
-------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Abbott Laboratories, Inc. 38,500 1,674,750
Baxter International, Inc. 17,000 803,250
Boston Scientific Corp. * 7,000 315,000
Healthsource, Inc.* 67,000 1,172,500
Medtronic, Inc. 23,100 1,293,600
Patriot American Hospitality, Inc. 24,000 711,000
Quest Medical, Inc.* 164,543 1,151,801
Scandinavian Mobility
International, Inc.*+ 13,700 234,167
Tamro Group 10,000 60,009
United Healthcare Corp. 15,000 757,500
-------------
8,173,577
-------------
RETAIL--FOOD (0.9%)
Casino Guichard-Perrachon 20,125 831,329
Daimon Co. Ltd. 47,000 2,362,133
McBride PLC 400,000 814,034
Ministop Co. Ltd. 5,500 146,754
Santa Isabel S.A. (ADR) 38,600 1,071,150
Seven-Eleven Japan Ltd. 43,000 2,746,562
-------------
7,971,962
-------------
TOBACCO (3.4%)
Loews Corp. 113,800 8,975,975
Philip Morris Cos., Inc. 119,500 12,428,000
RJR Nabisco Holdings Corp. 133,000 4,123,000
Swedish Match Co. AB* 1,100,000 3,421,704
-------------
28,948,679
-------------
TOTAL CONSUMER NONCYCLICALS (11.7%) 100,938,330
</TABLE>
B-31
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
CREDIT SENSITIVE
BANKS (3.5%)
Advance Bank of Australia 60,000 $ 248,989
Akita Bank 79,000 574,624
Asahi Bank Ltd. 138,000 1,601,499
Banco Latinoamericano de
Exportaciones, S.A. 60,000 3,375,000
Banco Osorno Y La Union (ADR) 15,000 202,500
Banco Popular 5,000 892,289
Bancomer B Local* 1,000,000 435,069
Bank of Tokyo--Mitsubishi Bank 49,300 1,144,259
Bankinter-Banco Interc Espana 2,000 223,932
Barclays Bank 190,000 2,281,625
Chase Manhattan Corp. 39,288 2,774,715
CoreStates Financial Corp. 26,000 1,001,000
First Union Corp. 53,000 3,226,375
Fokus Bank* 58,000 316,305
Grupo Financiero Bantorte (Class
B)* 178,750 170,620
Hachijuni Bank 87,000 946,041
Hock Hua Bank BHD 150,000 463,019
HSBC Holdings PLC 160,000 2,418,370
Mitsubishi Trust & Banking Corp. 5,000 84,525
Overseas Chinese Bank 111,000 1,298,016
Overseas Chinese Bank--
Rights* 11,100 88,894
Overseas Union Bank Ltd. 220,400 1,515,152
Sparbanken Sverige AB (A Shares) 148,000 1,921,953
Standard Chartered PLC 200,000 1,991,587
Toho Bank 86,000 632,613
Union Bank of Norway+ 8,600 210,654
-------------
30,039,625
-------------
FINANCIAL SERVICES (3.5%)
Americredit Corp. * 296,700 4,635,937
CMIC Finance & Securities Co. Ltd. 724,700 2,126,601
Credit Local de France 25,000 2,036,254
Credit Saison Co. 100,900 2,443,323
Dean Witter Discover & Co. 9,200 526,700
Hong Leong Finance Ltd. 160,000 442,240
Invesco 400,000 1,435,434
JCG Holdings 142,000 115,570
MBNA Corp. 34,000 969,000
Mercury Finance Co. 292,950 3,735,113
MS Financial, Inc.* 90,700 566,875
Nichiei Co. Ltd. 60,200 4,015,717
Promise Co. Ltd. 33,900 1,672,774
Sanyo Shinpan Finance Co. Ltd. 34,600 2,216,348
Union Acceptance Corp.
(Class A)* 53,800 833,900
Yamaichi Securities 390,000 2,679,947
-------------
30,451,733
-------------
INSURANCE (5.3%)
Acceptance Industries Cos., Inc.* 110,100 1,885,463
Aegon N.V. 120,000 5,530,761
<PAGE>
COMMON STOCKS (Continued):
American International
Group, Inc. 96,250 $ 9,492,656
AMEV N.V. 125,000 3,584,264
Corporacion Mapfre
Cia Inter S.A. 70,853 3,620,555
IPC Holdings Ltd. 17,600 354,200
Koa Fire & Marine 86,000 558,743
Pacific & Orient BHD 193,000 541,592
PennCorp Financial Group, Inc. 45,700 1,450,975
PMI Group, Inc. 44,500 1,891,250
Progressive Corp. 74,500 3,445,625
Travelers Group, Inc. 227,850 10,395,656
Twentieth Century Industries* 211,000 3,507,875
-------------
46,259,615
-------------
MORTGAGE RELATED (0.2%)
Federal National Mortgage
Association 53,000 1,775,500
-------------
REAL ESTATE (2.3%)
Bradley Real Estate, Inc. 30,801 446,615
Castle & Cooke, Inc.* 135,000 2,160,000
Cheung Kong Holdings 90,000 648,193
Chubu Sekiwa Real Estate 16,000 258,784
City Developments Ltd.* 262,000 2,042,523
Daibiru Corp. 57,000 760,451
Essex Property Trust, Inc. 22,800 490,200
First Industrial Realty Trust 22,000 517,000
JP Realty, Inc. 87,300 1,866,038
Macerich Co. 119,700 2,513,700
Mitsubishi Estate Co. 194,000 2,676,840
Shurgard Storage Centers, Inc.
(Class A) 22,000 555,500
Spieker Properties, Inc. 37,700 1,027,325
Storage USA, Inc. 48,000 1,548,000
Summit Properties, Inc. 82,000 1,609,250
Sun Communities, Inc. 41,000 1,101,875
-------------
20,222,294
-------------
UTILITY--ELECTRIC (1.5%)
Chilectra S.A. 5,000 275,000
Enersis (ADR) 45,000 1,395,000
Hidroelectrica del Cantabrico 56,000 1,951,471
Iberdrola II* 150,000 1,541,190
Iberdrola S.A. 250,000 2,568,650
National Power PLC 300,000 2,423,460
Veba AG 60,000 3,192,056
-------------
13,346,827
-------------
UTILITY--GAS (0.1%)
General de Aguas d'Barcelona* . 12,000 446,301
-------------
UTILITY--TELEPHONE (1.5%)
AT&T Corp. 17,000 1,054,000
Empresas Telex-Chile S.A. (ADR) 145,000 1,178,125
Hellenic Telecommunication
Organization S.A.* 48,880 810,715
Kon. PTT Nederland+ 50,000 1,894,016
PT Indonesian Satellite (ADR) 40,000 1,340,000
Stet Societa Finanz Telefon 40,000 135,277
</TABLE>
B-32
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
Tele Danmark AS (B Shares) 30,000 $ 1,503,355
Telefonica de Espana SA 100,000 1,843,958
Telephone & Data Systems, Inc. 61,700 2,776,500
-------------
12,535,946
-------------
TOTAL CREDIT SENSITIVE (17.9%) 155,077,841
-------------
ENERGY
OIL--DOMESTIC (0.0%)
XCL Corp.* 850,000 265,625
-------------
OIL--INTERNATIONAL (1.2%)
Canadian Occidental 10,000 167,500
ENI Spa 666,000 3,324,185
Omv AG 40,000 4,055,276
Repsol SA 65,000 2,262,561
Yukong Ltd. (GDR)+ 25,000 200,000
-------------
10,009,522
-------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Coflexip (ADR)* 70,117 1,218,283
-------------
RAILROADS (0.9%)
Railtrack Group PLC Sponsored
(ADR)*+ 9,160 311,440
Southern Pacific Rail Corp.* 106,000 2,650,000
Union Pacific Corp. 71,000 4,961,125
-------------
7,922,565
-------------
TOTAL ENERGY (2.2%) 19,415,995
-------------
TECHNOLOGY
ELECTRONICS (8.1%)
Altera Corp.* 15,000 570,000
Austria Mikro Systeme 4,000 373,758
Aval Data 15,000 202,860
Bay Networks, Inc.* 36,050 928,288
Cisco Systems, Inc.* 338,000 19,139,250
EMC Corp.* 197,000 3,669,125
Futaba Corp. 9,000 407,091
General Instrument Corp.* 77,600 2,240,700
GP Batteries International 850,000 2,499,000
GP Batteries International--Rights* 12,500 6,250
Hirose Electric 42,400 2,623,000
Hoya Corp. 84,000 2,717,229
Intel Corp. 49,500 3,635,155
National Semiconductor Corp.* 156,000 2,418,000
NEC Corp. 195,000 2,120,437
Nikon Corp. 93,000 1,070,773
Pace Micro Technology PLC* 1,200,000 3,541,980
Rohm Co. Ltd. 60,000 3,969,480
Seagate Technology, Inc.* 39,000 1,755,000
SGS-Thomson
Microelectronics N.V.* 35,290 1,241,676
Shinmei Electric Co. 1,000 26,043
TDK Corp. 41,000 2,450,222
Texas Instruments, Inc. 52,000 2,593,500
Tokyo Electron 105,000 3,060,721
Yokogawa Electric Corp. 375,000 3,769,360
3Com Corp.* 75,500 3,454,125
-------------
70,483,023
-------------
OFFICE EQUIPMENT (2.6%)
Canon, Inc. 246,000 5,125,233
<PAGE>
COMMON STOCKS (Continued):
Ceridian Corp.* 37,100 $ 1,873,550
Compaq Computer Corp.* 40,000 1,970,000
Dell Computer Corp.* 48,100 2,447,088
Digital Equipment Corp.* 15,200 684,000
Fujitsu Ltd. 30,000 274,135
Ricoh Elemex Corp. 20,000 310,687
Sterling Software, Inc.* 113,600 8,747,200
Xerox Corp. 20,400 1,091,400
-------------
22,523,293
-------------
OFFICE EQUIPMENT SERVICES (2.6%)
Accugraph Corp. (Class A)* 6,200 11,353
Electronic Data Systems Corp. 89,000 4,783,750
Ines Corp. 3,000 56,198
I-Net Corp. 300 5,675
Informix Corp.* 133,000 2,992,500
Istar Internet, Inc.*+ 12,500 55,393
Meitec Corp.* 81,000 1,843,012
Microsoft Corp.* 33,000 3,964,125
Misys PLC 130,000 1,571,210
NTT Data Communications Systems
Corp.* 20 599,443
Oracle Corp.* 153,800 6,065,487
Turbon International AG* 30,000 832,539
-------------
22,780,685
-------------
TELECOMMUNICATIONS (5.5%)
AirTouch Communications, Inc.* 163,000 4,604,750
BCE Mobile Communications, Inc.* 16,000 519,758
Bell Cablemedia PLC (ADR)* 40,000 670,000
Cabletron Systems, Inc.* 17,000 1,166,625
Cellular Communications Puerto
Rico, Inc.* 7,600 247,000
Cox Communications, Inc.
(Class A)* 57,000 1,232,625
DDI Corp. 390 3,406,954
DSC Communications Corp.* 15,600 469,950
Filtronic Comtek PLC 1,210,000 5,733,191
Korea Mobile Telecommunications
(ADR)* 352,000 6,028,000
Mannesmann AG 6,500 2,239,832
MCI Communications Corp. 54,000 1,383,750
Memc Electronic Materials* 49,500 1,918,125
NetCom Systems AB (B Shares)* 85,600 969,433
Newbridge Networks Corp.* 52,000 3,406,000
Rogers Cantel Mobile
Communications, Inc. (Class B)* 20,000 472,441
Rogers Cantel Mobile
Communications, Inc.
(Class B)(ADR)* 13,900 324,913
Tadiran Telecommunications Ltd.* 199,800 3,196,800
Tokyo Broadcasting System 168,000 2,978,206
Total Access Communications+ 220,000 1,870,000
United States Cellular Corp.* 40,600 1,258,600
Vodafone Group 900,000 3,348,569
-------------
47,445,522
-------------
TOTAL TECHNOLOGY (18.8%) 163,232,523
-------------
</TABLE>
B-33
<PAGE>
THE HUDSON RIVER TRUST
GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ----------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCKS (Continued):
DIVERSIFIED
MISCELLANEOUS (1.2%)
Alba 8,000 $ 666,325
BTR PLC 200,000 787,625
Crean (James) PLC--Units 385,000 1,537,759
Hanson PLC 500,000 1,402,034
Indonesia Fund, Inc.* 20,000 222,500
International UNP Holdings* 450,000 161,509
International UNP
Holdings--Warrants* 225,000 5,191
Mitsubishi Corp. 175,000 2,302,737
Taiwan Fund 40,000 960,000
Tomkins PLC 500,000 1,883,619
-------------
TOTAL DIVERSIFIED (1.2%) 9,929,299
-------------
TOTAL COMMON STOCKS (86.9%)
(Cost $648,662,271) 752,268,240
-------------
PREFERRED STOCKS:
CONSUMER CYCLICALS (0.0%)
RETAIL--GENERAL
Fielmann AG 4,000 192,023
-------------
CREDIT SENSITIVE (0.4%)
UTILITY--ELECTRIC
Korea Electric Power (ADR) 120,000 2,910,000
-------------
TECHNOLOGY (0.2%)
TELECOMMUNICATIONS
Nokia Oy Cum 44,000 1,624,121
-------------
TOTAL PREFERRED STOCKS (0.6%)
(Cost $3,379,531) 4,726,144
-------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE (0.0%)
INSURANCE
Corporacion Mapfre
8.5% Conv., 02/27/99 ..........Peseta 29,910,000 233,698
-------------
TECHNOLOGY
ELECTRONICS (0.7%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ $1,305,000 1,301,738
3Com Corp.
10.25% Conv., 11/01/01+ 3,000,000 4,687,500
-------------
TOTAL TECHNOLOGY (0.7%) 5,989,238
-------------
DIVERSIFIED (0.0%)
MISCELLANEOUS
Brierley Investment Ltd.
9.0% Conv. Sub. Note, 06/30/98 27,900 24,348
-------------
TOTAL LONG-TERM DEBT SECURITIES (0.7%)
(Amortized Cost $5,833,440) 6,247,284
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE (NOTE
AMOUNT 1)
- ------------------------------ ------------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
CERTIFICATES OF DEPOSIT
Norinchuckin Bank Ltd.
5.48%, due 07/08/96 $15,000,000 $15,000,074
Sanwa Bank Ltd.
5.45%, due 07/17/96 2,000,000 1,999,993
United Bank of Oregon
5.32%, due 07/30/96 15,000,000 14,999,852
-------------
TOTAL CERTIFICATES OF DEPOSIT (3.7%) 31,999,919
-------------
COMMERCIAL PAPER
Aga Capital Corp.
5.39%, due 07/22/96 15,000,000 14,948,346
Allomon Funding Corp.
5.42%, due 07/02/96 700,000 699,684
Clipper Receivables
5.3%, due 07/02/96 12,545,000 12,539,459
Greenwich Funding
5.0%, due 07/02/96 9,177,000 9,173,176
International Securitization
5.07%, due 09/05/96 10,000,000 9,899,511
Unilever PLC
5.0%, due 10/25/96 1,000,000 982,529
-------------
TOTAL COMMERCIAL PAPER (5.6%) 48,242,705
-------------
TIME DEPOSITS (0.1%)
Sumitomo Bank
5.6875%, due 07/01/96 1,500,000 1,500,000
-------------
U.S. GOVERNMENT
Federal Home Loan Bank
5.3%, due 07/01/96 1,900,000 1,899,441
Federal National Mortgage
Association
5.31%, due 10/18/96 10,000,000 10,004,066
-------------
TOTAL U.S. GOVERNMENT (1.4%) 11,903,507
-------------
TOTAL SHORT-TERM DEBT SECURITIES (10.8%)
(Amortized Cost $93,647,869) 93,646,131
-------------
TOTAL INVESTMENTS (99.0%)
(Cost/Amortized Cost $751,523,111) 856,887,799
CASH AND RECEIVABLES
LESS LIABILITIES (1.0%) 9,074,362
-------------
NET ASSETS (100.0%) $865,962,161
=============
</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-34
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
NUMBER OF SHARES (NOTE 1)
- ----------------------------------- ---------------- --------------------------
<S> <C> <C>
COMMON STOCKS:
ARGENTINA (0.2%)
Quilmes Industrial Quins (ADR)* ... 19,000 $ 194,750
--------------------------
AUSTRALIA
Aristocrat Leisure Ltd.* ........... 160,000 364,681
Boral Ltd. ......................... 100,000 259,364
Brambles Industries Ltd. ........... 20,000 277,912
Broken Hill Property ............... 4,500 62,141
Cochlear Ltd. + .................... 102,300 269,349
Coles Myer Ltd. .................... 120,000 435,731
Guinness Peat Group ................ 13,200 6,640
Gwalia Consolidated Ltd. ........... 5,000 12,772
National Australia Bank Ltd. ...... 4,900 45,251
News Corp. Ltd. .................... 5,900 33,434
Novus Petroleum Ltd. ............... 40,000 58,160
Oil Search Ltd. .................... 300,000 299,447
Oil Search Ltd.*+ .................. 180,000 179,668
Plutonic Resources Ltd. ............ 20,000 102,174
Qantas Airways Ltd. ................ 100,000 168,979
QBE Insurance Group Ltd. ........... 51,199 303,811
QCT Resources, Inc. ................ 200,000 264,079
Villa World Ltd. ................... 50,000 38,119
Western Mining Corp. Ltd. .......... 22,000 157,347
Westralian Sands Ltd. .............. 14,000 47,094
--------------------------
TOTAL AUSTRALIA (3.2%) ............ 3,386,153
--------------------------
AUSTRIA (0.1%)
Omv AG ............................. 600 60,829
--------------------------
BELGIUM
Electrabel ......................... 250 53,440
Generale de Banque ................. 120 41,697
Petrofina SA ....................... 110 34,515
Tractebel Investment International
Capital ........................... 70 28,685
--------------------------
TOTAL BELGIUM (0.2%) .............. 158,337
--------------------------
CANADA
Accugraph Corp. (Class A)* ......... 5,000 9,156
Architel Systems Corp.*+ ........... 30,300 205,292
Istar Internet, Inc.*+ ............. 12,000 53,177
Nelvana Limited*+ .................. 1,000 17,579
Prime Resource Group, Inc. ......... 20,000 147,958
Renaissance Energy Ltd.* ........... 2,000 52,738
Sears Canada, Inc. ................. 10,000 58,964
Transat A.T., Inc.* ................ 22,500 408,716
--------------------------
TOTAL CANADA (0.9%) ............... 953,580
--------------------------
CHILE
Empresas Telex-Chile S.A. (ADR) ... 20,000 162,500
Enersis (ADR) ...................... 1,000 31,000
Santa Isabel S.A. (ADR) ............ 13,400 371,850
--------------------------
TOTAL CHILE (0.5%) ................ 565,350
--------------------------
DENMARK
Carli Gry International*+ .......... 15,600 511,188
Den Danske Bank .................... 400 26,829
Novo-Nordisk AS (ADR) .............. 550 77,910
Scandinavian Mobility
International, Inc.*+ ............. 6,000 102,555
Tele Danmark AS (B Shares) ......... 4,000 200,447
--------------------------
TOTAL DENMARK (0.9%) .............. 918,929
--------------------------
<PAGE>
COMMON STOCKS (Continued):
FINLAND
KCI Konecranes International* ..... 20,000 $ 487,841
Nokia Corp. (ADR) .................. 3,000 111,000
--------------------------
TOTAL FINLAND (0.6%) .............. 598,841
--------------------------
FRANCE
Alcatel Alsthom .................... 3,950 344,764
Banque Nationale de Paris .......... 700 24,589
BSN Gervais Danone ................. 500 75,716
Carrefour .......................... 225 126,141
Cie de St. Gobain .................. 250 33,484
Cie Fin Paribas (Series A) ......... 750 44,321
Cie Generale des Eaux .............. 700 78,243
Coflexip (ADR)* .................... 3,000 52,125
Credit Local de France ............. 1,000 81,450
Elf Aquitaine ...................... 2,250 165,593
Havas .............................. 350 28,644
Lafarge Corp. ...................... 450 27,249
L'Air Liquide SA ................... 500 88,351
L'Oreal ............................ 450 149,497
Louis Vuitton Moet Hennessy ....... 500 118,676
Lyonnais des Eaux Dumez ............ 400 38,225
Michelin (CGDE), (Class B) ......... 1,800 88,036
Pernod-Ricard ...................... 3,000 192,448
Peugeot SA ......................... 250 33,484
Pinault Printemps .................. 150 52,515
Promodes ........................... 100 28,848
Schneider SA* ...................... 800 41,989
SGS-Thomson Microelectronics N.V.* 5,000 175,925
Societe Generale ................... 550 60,514
Union Assur de Paris* .............. 3,800 77,193
--------------------------
TOTAL FRANCE (2.1%) ............... 2,228,020
--------------------------
GERMANY
Adidas AG + ........................ 3,000 250,058
Allianz AG Holding ................. 150 261,007
Apcoa Parking AG ................... 800 72,601
Bayer AG ........................... 4,500 158,468
B.U.S. Berzelius Umwelt-Service AG* 2,000 239,371
Daimler-Benz AG* ................... 200 107,388
Deutsche Bank AG ................... 3,250 154,095
Dresdner Bank ...................... 2,850 71,594
Kiekert AG ......................... 1,000 27,949
Linde AG ........................... 50 32,437
Lufthansa AG ....................... 200 28,343
Mannesmann AG ...................... 150 51,688
RWE AG ............................. 1,850 72,022
SAP AG ............................. 500 73,718
Schering AG ........................ 400 29,027
SGL Carbon AG + .................... 4,000 470,851
Siemens AG ......................... 2,500 134,120
SKW Trostberg AG* .................. 5,000 132,180
Thyssen AG ......................... 150 27,472
Turbon International AG ............ 4,500 124,881
Veba AG ............................ 5,150 273,985
Viag AG ............................ 150 59,777
--------------------------
TOTAL GERMANY (2.7%) .............. 2,853,032
--------------------------
</TABLE>
B-35
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
NUMBER OF SHARES (NOTE 1)
- ----------------------------------- ---------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
GREECE (0.3%)
Hellenic Telecommunication
Organization S.A.* ................ 19,070 $ 316,292
-------------------------
HONG KONG
Aeon Credit Service Co.* ........... 824,000 231,528
Associated International Hotels* .. 10,000 7,170
Cheung Kong Holdings ............... 50,000 360,107
China Apollo Holdings Ltd. ......... 1,200,000 155,024
China Overseas Land & Investment .. 500,000 120,789
Ek Chor China Motorcycle Co. ...... 3,000 40,500
First Sign International Holdings
Ltd.* ............................. 1,000,000 213,158
Hang Seng Bank ..................... 5,000 50,383
HSBC Holdings PLC .................. 15,000 226,722
Hutchison Whampoa .................. 12,000 75,497
Jardine International Holdings Ltd. 32,000 39,273
Playmates Toys Holdings Ltd. ...... 60,000 14,572
Television Broadcasts .............. 37,000 138,856
Tingyi Holdings Corp.* ............. 400,000 109,808
--------------------------
TOTAL HONG KONG (1.7%) ............ 1,783,387
--------------------------
INDONESIA
Bank Bali .......................... 20,000 42,965
PT Indonesian Satellite (ADR) ..... 1,500 50,250
PT Sekar Bumi* ..................... 501,000 301,353
--------------------------
TOTAL INDONESIA (0.4%) ............ 394,568
--------------------------
IRELAND
Crean (James) PLC--Units ........... 5,000 19,971
Jurys Hotel Group PLC* ............. 59,200 269,559
--------------------------
TOTAL IRELAND (0.3%) .............. 289,530
--------------------------
ISRAEL
Home Centers Ltd.* ................. 15,400 99,859
Tadiran Telecommunications Ltd.* .. 20,000 320,000
--------------------------
TOTAL ISRAEL (0.4%) ............... 419,859
--------------------------
ITALY
Assicurazioni Generali Spa ......... 5,000 115,397
Banca Commerciale Italiana Spa .... 10,000 20,109
Editorale La Repubblica Spa* ...... 40,000 66,855
ENI Spa ............................ 30,000 149,738
Fiat Spa ........................... 20,000 67,051
Industrie Natuzzi (ADR) ............ 1,700 87,125
Istituto Banco San Paolo de Torino 5,000 32,318
Istituto Mobilare Italiano ......... 2,500 20,892
Istituto Naz Delle Assicurazioni* . 22,500 33,566
Mediolanum Spa Ord*+ ............... 36,000 358,431
Rinascente ......................... 10,000 71,654
Rinascente-Warrants* ............... 500 407
Telecom Italia Mobile Spa .......... 40,000 89,445
Telecom Italia Spa ................. 5,000 10,756
--------------------------
TOTAL ITALY (1.1%) ................ 1,123,744
--------------------------
<PAGE>
COMMON STOCKS (Continued):
JAPAN
Ado Electronic Industrial Co. Ltd. 2,000 $ 60,858
Advan Co. .......................... 4,000 195,550
Ajinomoto Co., Inc. ................ 3,000 35,912
Akita Bank ......................... 10,000 72,737
Alpine Electronics ................. 2,000 37,465
Asahi Bank Ltd. .................... 25,000 290,127
Asahi Chemical Industry Co. ....... 6,000 42,875
Asahi Diamond Industry Co. Ltd. ... 20,450 267,223
Asahi Glass Co. Ltd. ............... 5,000 59,853
Asatsu, Inc. ....................... 5,000 217,024
Bridgestone Corp. .................. 4,000 76,392
Bridgestone Metalpha Corp. ......... 14,000 200,850
Canon, Inc. ........................ 40,000 833,371
Credit Saison Co. .................. 10,000 242,153
Daibiru Corp. ...................... 16,000 213,460
Dai-Ichi Corp. ..................... 8,000 232,467
Dai-Ichi Kangyo Bank ............... 12,000 223,694
Daimon Co. Ltd. .................... 10,000 502,581
Dainippon Ink & Chemical, Inc. .... 35,000 179,741
Dainippon Printing Co. Ltd. ....... 3,000 58,117
Daiseki Co. Ltd.* .................. 7,000 193,174
Daiwa House Industry Co. ........... 2,000 31,069
DDI Corp. .......................... 68 594,033
Doshisha Co. ....................... 2,000 67,437
Eiden Sakakiya Co. Ltd. ............ 8,000 111,847
Enix Corp.* ........................ 12,800 401,188
Enshu* ............................. 79,000 406,424
Fanuc Co. .......................... 900 35,857
FCC Co. Ltd. ....................... 200 7,438
Fuji Bank Ltd. ..................... 11,000 237,218
Fuji Photo Film Co. ................ 2,000 63,234
Fuji Soft Corp. .................... 5,000 181,843
Fujikura Ltd. ...................... 40,000 331,887
Fujitsu Ltd. ....................... 11,000 100,516
Hachijuni Bank ..................... 2,000 21,748
Hankyu Corp.* ...................... 25,000 146,662
Hirose Electric .................... 6,000 371,179
Hitachi Ltd. ....................... 16,000 149,130
Hitachi Metals Ltd. ................ 26,000 299,356
Hitachi Plant Engineering &
Construction Co.* ................. 30,000 239,868
Hokushin* .......................... 600 7,676
Homac Corp. ........................ 3,800 87,851
Home Wide Corp, Inc. ............... 15,000 226,162
Honda Motor Corp. .................. 19,000 493,079
Hoya Corp. ......................... 12,000 388,176
Industrial Bank of Japan ........... 9,000 223,694
I-Net Corp. ........................ 800 15,132
Isetan Co. ......................... 30,000 455,065
Ishihara Sangyo Ltd.* .............. 75,000 298,808
Isuzu Motors Ltd. .................. 40,000 228,812
Ito Yokado Co. Ltd. ................ 2,000 120,802
Japan Industrial Land Development . 4,200 131,640
</TABLE>
B-36
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
NUMBER OF SHARES (NOTE 1)
- ----------------------------------- ---------------- --------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Kajima Corp. ....................... 16,000 $165,212
Kaneshita Construction Co. ......... 6,000 76,758
KAO Corp. .......................... 3,000 40,572
Kawasaki Kisen* .................... 20,000 67,620
Kawasaki Steel ..................... 13,000 46,923
Keyence Corp. ...................... 3,200 435,693
King Co.* .......................... 46,000 325,344
Kinki Nippon Railroad Co. .......... 7,000 50,468
Kirin Brewery Co. .................. 4,000 48,979
Koa Fire & Marine .................. 20,000 129,940
Komatsu Ltd. ....................... 4,000 39,475
Kubota Corp. ....................... 6,000 39,640
Mabuchi Motor Co. .................. 1,200 76,539
Makino Milling Machine Co. ......... 30,000 304,290
Matsuda Sangyo Co. Ltd.* ........... 8,000 285,101
Matsushita Electric Industrial Co. 9,000 167,771
Matsuyadenki Co. Industries ....... 7,000 102,344
Meitec Corp.* ...................... 30,000 682,597
Minebea Co. ........................ 42,000 353,470
Ministop Co. Ltd. .................. 9,200 245,479
Misawa Ceramic Corp. ............... 35,000 252,661
Mitsubishi Chemical Corp. .......... 10,000 46,237
Mitsubishi Corp. ................... 30,000 394,755
Mitsubishi Estate Co. .............. 15,000 206,972
Mitsubishi Heavy Industries Ltd. .. 90,000 783,754
Mitsubishi Materials Corp. ......... 6,000 32,677
Mitsui Home Co. Ltd. ............... 11,000 178,919
Mitsui & Co. ....................... 6,000 54,443
Murata Manufacturing Co. Ltd. ..... 1,000 37,922
Namco Ltd. ......................... 14,000 464,385
Namura Shipbuilding Co. ............ 30,000 169,964
Nanno Construction Co. Ltd.* ...... 14,000 162,471
NEC Corp. .......................... 12,000 130,488
New Oji Paper Co. .................. 7,000 60,511
Nichiei Co. Ltd. ................... 11,000 733,754
Nichiha Corp. ...................... 11,400 231,261
Nikon Corp. ........................ 4,000 46,055
Nintendo Co. ....................... 3,500 260,977
Nippon Electric Glass .............. 32,000 546,809
Nippon Express Co. Ltd. ............ 5,000 48,887
Nippon Kanzai Co. .................. 1,000 30,703
Nippon Paper Industries Co. ....... 25,000 156,486
Nippon Steel Corp. ................. 27,000 92,767
Nippon Television Network Corp. ... 3,000 932,060
Nippon Yusen K.K. .................. 4,000 23,174
Nippondenso Co. Ltd. ............... 4,000 86,992
Nireco* ............................ 15,000 287,842
Nissen Corp. Ltd. .................. 2,300 34,678
Nitta Corp. ........................ 20,000 374,652
Nitto Kohki Co. Ltd. ............... 11,000 502,581
Nomura Securities Co. .............. 8,000 156,440
Noritsu Koki Co. Ltd.* ............. 16,000 809,979
NTT Data Communications Systems
Corp.* ............................ 5 149,861
Ohmoto Gumi Co. Ltd. ............... 8,000 162,288
Oie Sangyo Co. Ltd. ................ 9,000 152,145
Omron Corp. ........................ 40,000 851,647
Oriental Construction Co. .......... 11,600 193,978
<PAGE>
COMMON STOCKS (Continued):
Paris Miki, Inc. ................... 9,700 $452,049
Promise Co. Ltd. ................... 5,000 246,722
PS Corp. ........................... 19,900 381,871
Renown, Inc.* ...................... 70,000 280,806
Ricoh Elemex Corp. ................. 6,000 93,206
Rohm Co. Ltd. ...................... 5,000 330,790
Royal Ltd.* ........................ 20,000 626,856
Sankyo Co. ......................... 11,000 285,466
Santen Pharmaceutical Co. .......... 18,000 419,427
Sanyo Electric Co. Ltd. ............ 60,000 366,793
Sanyo Pax Co. Ltd. ................. 20,900 435,437
Sanyo Shinpan Finance Co. Ltd. .... 5,700 365,121
Sato Corp. ......................... 12,800 314,634
Sekisui Chemical Co. Ltd. .......... 24,000 293,873
Sekisui House Ltd. ................. 3,000 34,267
Seven-Eleven Japan Ltd. ............ 6,000 383,241
Shaddy Co. Ltd.* ................... 12,000 236,853
Shimizu Corp. ...................... 3,000 33,170
Shin-Etsu Chemical Ltd. ............ 4,000 76,758
Sho Bond Construction .............. 13,500 505,780
SMC Corp. .......................... 5,000 387,445
Sodick Co.* ........................ 45,000 538,677
Sony Corp. ......................... 1,000 65,884
Sumitomo Bank ...................... 12,000 232,467
Sumitomo Chemical Co. Ltd. ......... 7,000 33,454
Sumitomo Forestry Co. .............. 8,000 119,157
Sumitomo Metal Industries .......... 200,000 614,064
Taisei Corp. ....................... 4,000 28,437
Taisho Pharmaceutical Co. .......... 15,000 324,850
Takara Printing Co.* ............... 19,000 256,956
Takeda Chemical Industries ......... 16,000 283,639
Takihyo Co. Ltd.* .................. 22,000 367,890
TDK Corp. .......................... 2,000 119,523
Toda Construction .................. 19,000 185,772
Toho Bank .......................... 3,000 22,068
Tokio Marine & Fire
Insurance Co. ..................... 6,000 80,048
Tokyo Broadcasting System .......... 24,000 425,458
Tokyo Electric Power Co., Inc. .... 7,000 177,822
Tokyo Electron ..................... 18,000 524,695
Tokyu Corp. ........................ 5,000 38,151
Toray Industries, Inc. ............. 6,000 41,449
Toso Co. Ltd. ...................... 14,000 221,319
Tostem Corp. ....................... 1,000 29,515
Toyota Motor Corp. ................. 7,000 175,264
Traveler Corp. ..................... 1,000 13,524
Warabeya Nichiyo Co. Ltd.* ......... 16,000 261,708
Wesco, Inc. ........................ 2,500 70,133
Xebio Co. .......................... 5,000 187,783
Yamaha Corp. ....................... 20,000 330,790
Yamaichi Securities ................ 30,000 206,150
Yamanouchi Pharmaceutical .......... 28,000 608,946
Yamato Transport ................... 60,000 707,269
Yaskawa Electric Corp.* ............ 50,000 244,895
Yokogawa Electric Corp. ............ 58,000 582,995
--------------------------
TOTAL JAPAN (37.0%) ............... 38,908,162
--------------------------
MALAYSIA
Hong Leong Bank BHD* ............... 50,000 140,309
Kim Hin Industry BHD* .............. 100,000 198,837
</TABLE>
B-37
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
NUMBER OF SHARES (NOTE 1)
- ----------------------------------- ---------------- --------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Malayan Banking Berhad ............. 24,000 $ 230,908
Malaysia Assurance Alliance BHD ... 20,000 105,833
MBF Capital BHD .................... 30,000 41,371
Metacorp Berhard ................... 45,333 130,847
Pacific & Orient BHD ............... 80,000 224,494
Pernas International Hotels &
Properties* ....................... 139,000 159,367
Resorts World BHD .................. 20,000 114,652
RJ Reynolds BHD .................... 150,000 441,972
Sriwani Holdings BHD* .............. 200,000 347,966
Star Publications BHD .............. 40,000 125,075
--------------------------
TOTAL MALAYSIA (2.2%) ............. 2,261,631
--------------------------
MEXICO
Elamex S.A. de C.V.* ............... 33,300 333,000
Panamerican Beverages .............. 5,000 223,750
--------------------------
TOTAL MEXICO (0.5%) ............... 556,750
--------------------------
NETHERLANDS
ABN Amro Holdings .................. 1,456 78,206
Aegon N.V. ......................... 5,000 230,448
Akzo Nobel N.V. .................... 330 39,572
AMEV N.V. .......................... 2,000 57,348
Elsevier N.V. ...................... 17,310 262,892
Heineken N.V. ...................... 233 52,110
Hunter Douglas N.V. ................ 3,000 204,941
IHC Caland N.V. .................... 4,000 197,025
ING Groep N.V. ..................... 3,392 101,241
KLM ................................ 2,000 64,033
Kon. PTT Nederland + ............... 5,144 194,856
NV (Verenigde Bed) Nutricia + ..... 1,000 105,842
Philips Electronics ................ 2,098 68,278
Royal Dutch Petroleum Co. .......... 2,487 384,417
Toolex Alpha N.V.* ................. 15,000 360,000
Unilever N.V. CVA .................. 742 107,469
Ver Ned Uitgeversbedr Ver Bezit
N.V. .............................. 5,000 77,696
--------------------------
TOTAL NETHERLANDS (2.5%) .......... 2,586,374
--------------------------
NORWAY
Elkjop Norge AS .................... 2,000 41,287
Fokus Bank* ........................ 1,500 8,180
Hafslund Nycomed ASA
(B Shares) ........................ 5,000 31,581
Merkantildata A/S .................. 9,000 112,306
Norsk Hydro AS ..................... 1,100 53,888
Nycomed ASA-(B Shares)* ............ 5,000 69,325
Tomra Systems ...................... 49,450 502,788
Union Bank of Norway + ............. 12,000 293,936
--------------------------
TOTAL NORWAY (1.1%) ............... 1,113,291
--------------------------
NEW ZEALAND
Fisher & Paykel Industries ......... 20,000 64,317
Helicopter Line Ltd. ............... 15,000 28,860
Lion Nathan Ltd. ................... 15,000 39,271
Warehouse Group Ltd. ............... 100,000 178,659
--------------------------
TOTAL NEW ZEALAND (0.3%) .......... 311,107
--------------------------
PANAMA (0.2%)
Banco Latinoamericano de
Exportaciones, S.A. ............... 4,000 225,000
--------------------------
<PAGE>
COMMON STOCKS (Continued):
PERU (0.1%)
Banco Wiese Limitado (ADS) ......... 10,000 $ 71,250
--------------------------
SINGAPORE
City Developments Ltd.* ............ 60,000 467,753
Comfort Group Ltd.* ................ 200,000 198,441
Fraser & Neave ..................... 50,000 517,364
GP Batteries International ......... 30,000 88,200
Overseas Chinese Bank .............. 9,000 105,245
Overseas Chinese Bank-Rights* ..... 900 7,208
Overseas Union Bank Ltd. ........... 35,000 240,610
Singapore Airlines Ltd. ............ 40,000 422,395
Van Der Horst ...................... 25,000 116,938
--------------------------
TOTAL SINGAPORE (2.1%) ............ 2,164,154
--------------------------
SOUTH KOREA (1.0%)
Korea Mobile Telecommunications
(ADR)* ............................ 62,000 1,061,750
--------------------------
SPAIN
Banco Bilbao Vizcaya SA ............ 1,627 65,977
Banco de Valencia .................. 30,000 471,147
Banco Popular ...................... 200 35,692
Banco Santander SA ................. 1,156 54,013
Bankinter-Banco Interc Espana ..... 1,000 111,966
Centros Comerciales Pryca S.A. .... 3,000 75,008
Construcciones Auxiliar Ferro ..... 500 19,065
Corporacion Mapfre Cia Inter SA ... 6,000 306,597
Cubiertas Y Mzov SA ................ 2,000 130,484
El Aguila SA* ...................... 39,000 243,778
Endesa ............................. 1,122 70,045
Gas Y Electridad SA (Series 2) .... 16,000 887,601
General de Aguas d'Barcelona* ..... 1,920 71,408
Hidroelectrica del Cantabrico ..... 10,000 348,477
Iberdrola II* ...................... 10,000 102,746
Iberdrola S.A. ..................... 25,668 263,728
Prosegur Compania Securidad* ...... 863 30,343
Repsol SA .......................... 4,392 152,880
Telefonica de Espana SA ............ 12,358 227,876
Viscofan Envoltura ................. 2,500 39,555
--------------------------
TOTAL SPAIN (3.5%) ................ 3,708,386
--------------------------
SWEDEN
Astra AB (A Shares) ................ 2,900 128,306
Autoliv AB ......................... 4,000 122,010
BT Industries AB + ................. 10,000 154,022
Dahl International AB*+ ............ 33,000 475,883
Ericsson (L.M.) Telephone Co.
(Series B) ........................ 6,400 138,197
Kalmar Industries AB + ............. 4,000 83,957
Meda AB* ........................... 3,600 66,864
NetCom Systems AB (B Shares)* ..... 26,400 298,984
Sparbanken Sverige AB
(A Shares) ........................ 16,000 207,779
Swedish Match Co. AB* .............. 200,000 622,128
--------------------------
TOTAL SWEDEN (2.1%) ............... 2,298,130
--------------------------
SWITZERLAND
ABB AG ............................. 210 260,064
Ciba-Geigy AG ...................... 130 158,600
</TABLE>
B-38
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
NUMBER OF SHARES (NOTE 1)
- ----------------------------------- ---------------- --------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
CS Holdings ........................ 1,250 $ 119,000
Nestle AG .......................... 180 205,776
Roche Holdings AG Genusscheine .... 52 397,072
Sandoz AG .......................... 390 446,472
Schweiz Bankgesellschaft ........... 120 117,600
Schweiz Ruckversicherungs .......... 120 123,360
--------------------------
TOTAL SWITZERLAND (1.7%) .......... 1,827,944
--------------------------
THAILAND
CMIC Finance & Securities
Co. Ltd. .......................... 51,000 149,657
Nation Publishing Group
Co. Ltd. .......................... 130,000 437,805
Nawarat Patanakarn Public Co. ..... 30,000 82,716
Thai Engine Manufacturing Public
Co.* .............................. 70,000 562,470
Total Access Communications+ ...... 16,000 136,000
--------------------------
TOTAL THAILAND (1.3%) ............. 1,368,648
--------------------------
UNITED KINGDOM
Argyll Group PLC ................... 6,932 37,368
Barclays Bank ...................... 25,821 310,073
Bass Breweries ..................... 5,132 64,498
BAT Industries ..................... 17,186 133,759
BOC Group Co. PLC .................. 2,591 37,192
Boots Co. PLC ...................... 5,806 52,224
BPB Industries PLC ................. 50,000 247,783
British Aerospace .................. 2,120 32,177
British Airways .................... 44,490 382,898
British Gas ........................ 25,021 69,966
British Petroleum Co. PLC .......... 29,367 257,534
British Sky Broadcasting
Group PLC ......................... 8,097 55,346
British Steel ...................... 20,000 51,110
British Telecommunications ......... 35,150 188,935
BTR PLC ............................ 21,470 84,551
Cable & Wireless ................... 12,409 82,122
Cadbury Schweppes PLC .............. 5,961 47,136
Capital Radio PLC* ................. 5,000 50,799
Carlton Communications PLC ......... 20,000 160,943
Commercial Union PLC ............... 2,801 25,238
Filtronic Comtek PLC ............... 90,000 426,436
General Accident ................... 2,904 29,459
General Electric Co. PLC ........... 13,890 74,876
GKN PLC ............................ 2,089 32,063
Glaxo-Wellcome PLC ................. 23,220 312,566
Granada Group PLC* ................. 3,225 43,187
Grand Metropolitan ................. 24,736 164,085
Great Universal Stores ............. 3,970 40,335
Guinness PLC ....................... 80,571 585,782
Hanson PLC ......................... 44,569 124,974
Harvey Nichols Group PLC*+ ......... 122,300 642,177
HSBC Holdings PLC .................. 11,900 182,278
Imperial Chemical Industries ...... 3,109 38,059
Kingfisher PLC ..................... 4,084 41,049
Land Securities PLC ................ 3,207 31,038
<PAGE>
COMMON STOCKS (Continued):
Legal & General Group PLC .......... 2,990 $ 31,075
Lloyds TSB Group PLC ............... 34,379 168,235
Marks & Spencer .................... 17,109 125,053
McBride PLC ........................ 20,000 40,702
Mirror Group Newspapers PLC ....... 10,000 31,847
Misys PLC .......................... 12,000 145,035
National Grid Group PLC* ........... 9,754 25,836
National Power PLC ................. 50,000 403,910
Pace Micro Technology PLC* ......... 220,000 649,363
Peninsular & Oriental Steam
Navigation Co. .................... 3,314 25,021
Pliva DD (GDR)+ .................... 14,000 554,750
Powerscreen International .......... 40,000 283,358
Prudential Corp. ................... 8,019 50,578
Railtrack Group PLC Sponsored
(ADR)*+ ........................... 1,330 45,220
Rank Organisation PLC .............. 12,574 97,278
Reed International ................. 14,409 241,080
Rentokil Group PLC ................. 70,000 444,767
Reuters Holdings ................... 7,496 90,715
RTZ Corp. .......................... 5,510 81,575
Scottish Power PLC ................. 4,776 22,555
Tate & Lyle PLC .................... 12,000 85,380
Tesco .............................. 12,625 57,662
Thorn EMI .......................... 1,992 55,517
Tomkins PLC ........................ 25,000 94,181
Unilever ........................... 4,907 97,575
United Utilities PLC ............... 2,901 24,426
Vodafone Group ..................... 150,000 558,095
WPP Group PLC ...................... 60,000 200,402
Zeneca Group PLC ................... 10,336 228,491
--------------------------
TOTAL UNITED KINGDOM (9.6%) 10,099,698
--------------------------
TOTAL COMMON STOCKS (80.8%)
(Cost $79,542,607) ................ 84,807,476
--------------------------
PREFERRED STOCKS:
FINLAND (0.0%)
Nokia Oy Cum ....................... 1,400 51,677
--------------------------
GERMANY (0.4%)
Fielmann AG DEM5 ................... 8,000 384,046
--------------------------
SOUTH KOREA (0.1%)
Korea Electric Power (ADR) ......... 3,000 72,750
--------------------------
TOTAL PREFERRED STOCKS (0.5%)
(Cost $495,946) ................... 508,473
--------------------------
PRINCIPAL
AMOUNT
----------------
LONG-TERM DEBT SECURITIES:
SPAIN (0.0%)
Corporacion Mapfre
8.5% Conv., 02/27/99 .............. Peseta 2,520,000 19,690
--------------------------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $20,682) .......... 19,690
--------------------------
</TABLE>
B-39
<PAGE>
THE HUDSON RIVER TRUST
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT
Federal Home Loan Bank:
5.3%, due 07/01/96 ........... $14,400,000 $ 14,395,760
5.26%, due 07/15/96 .......... 5,000,000 4,988,311
-------------
TOTAL U.S. GOVERNMENT (18.5%) 19,384,071
-------------
TOTAL SHORT-TERM DEBT SECURITIES (18.5%)
(Amortized Cost $19,384,071) 19,384,071
-------------
TOTAL INVESTMENTS (99.8%) (Cost/Amortized
Cost $99,443,306) 104,719,710
CASH AND RECEIVABLES
LESS LIABILITIES (0.2%) ..... 242,758
-------------
NET ASSETS (100.0%) ........... $104,962,468
=============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
MARKET SECTOR DIVERSIFICATION
As a Percent of Total Equity Investments
Basic Materials ......................... 5.3%
Business Services ....................... 8.3
Capital Goods ........................... 15.3
Consumer Cyclicals ...................... 20.6
Consumer Non-Cyclicals .................. 14.1
Credit Sensitive ........................ 19.3
Energy .................................. 2.6
Technology .............................. 13.4
Diversified ............................. 1.1
-------
100.0%
=======
</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-40
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- --------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.4%)
RMI Titanium Co.* ................ 634,800 $ 14,917,800
--------------------------
CHEMICALS--SPECIALTY (2.5%)
Crompton & Knowles Corp. ......... 2,215,900 37,116,325
Cytec Industries, Inc.* .......... 467,400 39,962,700
UCAR International, Inc.* ........ 261,900 10,901,587
--------------------------
87,980,612
--------------------------
METALS & MINING (2.4%)
Alumax, Inc.* .................... 1,036,400 31,480,650
Homestake Mining Co. ............. 402,200 6,887,675
Kaiser Aluminum Corp.* ........... 1,678,700 18,465,700
Titanium Metals Corp.* ........... 981,300 25,391,138
--------------------------
82,225,163
--------------------------
TOTAL BASIC MATERIALS (5.3%) ... 185,123,575
--------------------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (3.1%)
Republic Industries, Inc.* ...... 678,500 19,761,312
USA Waste Services, Inc.* ........ 1,828,900 54,181,163
Wheelabrator Technologies, Inc. . 2,291,300 34,942,325
--------------------------
108,884,800
--------------------------
PRINTING, PUBLISHING &
BROADCASTING (1.8%)
Infinity Broadcasting Corp.
(Class A)* ...................... 1,813,650 54,409,500
Playboy Enterprises, Inc.
(Class B)* ...................... 507,600 7,487,100
--------------------------
61,896,600
--------------------------
PROFESSIONAL SERVICES (2.6%)
ADT Ltd.* ........................ 2,470,200 46,625,025
Loewen Group, Inc. ............... 1,451,700 43,913,925
--------------------------
90,538,950
--------------------------
TRUCKING, SHIPPING (1.7%)
Xtra Corp.++ ..................... 1,376,400 60,905,700
--------------------------
TOTAL BUSINESS SERVICES (9.2%) . 322,226,050
--------------------------
CAPITAL GOODS (0.1%)
BUILDING & CONSTRUCTION
Pacific Greystone Corp.* ......... 357,200 4,509,649
--------------------------
CONSUMER CYCLICALS
AIRLINES (3.2%)
America West Airlines, Inc.
(Class B)* ...................... 1,726,900 37,991,800
Delta Air Lines, Inc. ............ 529,800 43,973,400
Northwest Airlines Corp.
(Class A)* ...................... 788,700 31,153,650
--------------------------
113,118,850
--------------------------
APPAREL, TEXTILE (8.5%)
Mohawk Industries, Inc.* ......... 825,000 14,643,750
Nine West Group, Inc.*++ ......... 2,671,400 136,575,325
Polymer Group, Inc.*++ ........... 2,038,600 35,675,500
Reebok International Ltd. ........ 1,115,600 37,512,050
UNIFI, Inc. ...................... 1,195,600 33,626,250
Warnaco Group, Inc. (Class A) ... 1,536,600 39,567,450
--------------------------
297,600,325
--------------------------
<PAGE>
COMMON STOCKS (Continued):
FOOD SERVICES, LODGING (2.9%)
Extended Stay America, Inc.* .... 850,700 $ 26,797,050
Host Marriott Corp.* ............. 5,596,300 73,451,438
--------------------------
100,248,488
--------------------------
HOUSEHOLD FURNITURE, APPLIANCES (1.5%)
Industrie Natuzzi (ADR) .......... 1,001,100 51,306,375
--------------------------
LEISURE RELATED (5.5%)
Electronic Arts, Inc.* ........... 673,000 18,002,750
Estee Lauder Companies
(Class A) ....................... 847,000 35,785,750
Harman International Industries,
Inc. ............................ 755,400 37,203,450
Hasbro, Inc. ..................... 2,079,300 74,334,975
Heritage Media Corp. (Class A)* . 655,750 26,148,031
--------------------------
191,474,956
--------------------------
RETAIL--GENERAL (8.8%)
Circuit City Stores, Inc. ........ 560,200 20,237,225
Consolidated Stores Corp.* ...... 590,000 21,682,500
Federated Department
Stores, Inc.* ................... 4,383,400 149,583,525
Office Max, Inc.*++ .............. 4,261,600 101,745,700
Williams-Sonoma, Inc.* ........... 707,600 16,717,050
--------------------------
309,966,000
--------------------------
TOTAL CONSUMER CYCLICALS (30.4%) 1,063,714,994
--------------------------
CONSUMER NONCYCLICALS
DRUGS (2.7%)
Biogen, Inc.* .................... 937,600 51,450,800
Centocor, Inc.* .................. 712,900 21,297,888
Medimmune, Inc.* ................. 1,012,100 17,205,700
Pharmacyclics, Inc.* ............. 173,000 3,049,125
--------------------------
93,003,513
--------------------------
HOSPITAL SUPPLIES & SERVICES (9.3%)
Apria Healthcare Group, Inc.* ... 695,600 21,824,450
Health Management Associates,
Inc. (Class A)* ................. 1,510,900 30,595,725
Healthsouth Corp.* ............... 4,677,775 168,399,900
Manor Care, Inc. ................. 912,500 35,929,687
Saint Jude Medical, Inc.* ........ 1,646,150 55,146,025
Summit Technology, Inc.* ......... 1,141,550 15,981,700
--------------------------
327,877,487
--------------------------
TOTAL CONSUMER NONCYCLICALS (12.0%) 420,881,000
--------------------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.5%)
Imperial Credit Industries, Inc.* 529,800 16,026,450
--------------------------
INSURANCE (4.1%)
CNA Financial Corp.* ............. 1,133,100 116,709,300
Riscorp, Inc. (Class A)*++ ...... 1,479,000 26,991,750
--------------------------
143,701,050
--------------------------
REAL ESTATE (1.0%)
Pearl Oriental Holdings Ltd.* ... 107,310,000 33,617,770
--------------------------
UTILITY--TELEPHONE (3.6%)
Telephone & Data Systems, Inc.++ 2,883,000 129,735,000
--------------------------
TOTAL CREDIT SENSITIVE (9.2%) .. 323,080,270
--------------------------
</TABLE>
B-41
<PAGE>
THE HUDSON RIVER TRUST
AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- --------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
ENERGY
OIL--DOMESTIC (2.2%)
Amerada Hess Corp. ............... 300,700 $ 16,125,037
Diamond Shamrock, Inc.++ ......... 2,080,500 60,074,438
--------------------------
76,199,475
--------------------------
OIL--SUPPLIES & CONSTRUCTION (7.6%)
Diamond Offshore Drilling, Inc.* 1,986,584 113,731,934
Global Marine, Inc.* ............. 1,711,500 23,747,063
Noble Drilling Corp.* ............ 4,173,700 57,910,087
Rowan Cos., Inc.*++ .............. 4,805,200 70,876,700
--------------------------
266,265,784
--------------------------
TOTAL ENERGY (9.8%) ............. 342,465,259
--------------------------
TECHNOLOGY
ELECTRONICS (4.1%)
ITT Industries, Inc. ............. 1,049,300 26,363,663
LSI Logic Corp.* ................. 764,000 19,864,000
Parametric Technology Corp.* .... 1,440,600 62,486,025
Stratacom, Inc.* ................. 608,300 34,216,875
--------------------------
142,930,563
--------------------------
OFFICE EQUIPMENT (2.7%)
Sterling Software, Inc.* ......... 561,000 43,197,000
Storage Technology Corp.* ........ 886,100 33,893,325
Symantec Corp.* .................. 1,490,600 18,632,500
--------------------------
95,722,825
--------------------------
OFFICE EQUIPMENT SERVICES (1.9%)
Informix Corp.* .................. 1,722,800 38,763,000
Sybase, Inc.* .................... 1,192,600 28,175,175
--------------------------
66,938,175
--------------------------
TELECOMMUNICATIONS (7.5%)
American Satellite
Network--Warrants* .............. 49,450 0
Andrew Corp.* .................... 606,600 32,604,750
Ascend Communications, Inc.* .... 350,400 19,710,000
Cellular Communications, Inc.
(Class A)* ...................... 537,029 28,529,666
Glenayre Technologies, Inc.* .... 540,900 27,045,000
Millicom International Cellular
S.A.* ........................... 1,314,415 62,599,014
Tellabs, Inc.* ................... 460,900 30,822,687
United States Cellular Corp.* ... 1,033,100 32,026,100
Vanguard Cellular Systems, Inc.
(Class A)* ...................... 1,137,650 24,743,888
--------------------------
258,081,105
--------------------------
TOTAL TECHNOLOGY (16.2%) ........ 563,672,668
--------------------------
TOTAL COMMON STOCKS (92.2%)
(Cost $2,662,433,119) ........... 3,225,673,465
--------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------- ---------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES (0.5%)
Industrial Bank of Japan-N.Y.
5.32%, due 07/03/96 .......... $16,400,000 $ 16,390,306
---------------------------
CERTIFICATES OF DEPOSIT
American Express Centerian
5.35%, due 07/09/96 .......... 10,000,000 10,000,028
Mitsubishi Bank Ltd.-N.Y.
5.49%, due 08/06/96 .......... 25,000,000 25,000,000
Norinchuckin Bank Ltd.
5.48%, due 07/08/96 .......... 10,000,000 10,000,049
---------------------------
TOTAL CERTIFICATES OF DEPOSIT (1.3%) 45,000,077
---------------------------
COMMERCIAL PAPER
Asi Funding Corp.
5.34%, due 08/08/96 .......... 3,072,000 3,053,773
Beta Finance, Inc.
5.32%, due 11/01/96 .......... 2,000,000 1,962,847
Briarcliff Capital Corp.
5.32%, due 07/08/96 .......... 3,154,000 3,149,805
Corporate Asset
Securitization Australia
5.33%, due 08/06/96 .......... 7,500,000 7,457,804
Citicorp
5.6%, due 07/01/96 ........... 8,600,000 8,597,324
Jefferson Smurfit
5.3%, due 08/15/96 ........... 1,900,000 1,886,853
Province of Quebec
5.3%, due 08/05/96 ........... 25,000,000 24,863,820
Suntrust Bank
5.25%, due 09/03/96 .......... 10,000,000 9,901,917
Three River Funding
5.43%, due 07/15/96 .......... 5,000,000 4,987,933
---------------------------
TOTAL COMMERCIAL PAPER (1.9%) 65,862,076
---------------------------
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
5.5%, due 07/01/96 ........... 65,000,000 65,000,000
Sumitomo Bank
5.5%, due 07/01/96 ........... 30,200,000 30,200,000
---------------------------
TOTAL TIME DEPOSITS (2.7%) .. 95,200,000
---------------------------
U.S. GOVERNMENT (0.0%)
Federal Home Loan Bank
5.2%, due 07/01/96 ........... 1,600,000 1,599,538
---------------------------
TOTAL SHORT-TERM DEBT SECURITIES (6.4%)
(Amortized Cost $224,054,039) 224,051,997
---------------------------
TOTAL INVESTMENTS (98.6%) (Cost/Amortized
Cost $2,886,487,158) 3,449,725,462
CASH AND RECEIVABLES
LESS LIABILITIES (1.4%) ..... 46,862,671
---------------------------
NET ASSETS (100.0%) ........... $3,496,588,133
===========================
</TABLE>
- ------------
* Non-income producing.
++ Affiliated company as defined under the Investment Company Act of 1940
(see Note 5).
See Notes to Financial Statements.
B-42
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- --------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.0%)
Akzo Nobel N.V. 1,240 $ 148,695
Bayer AG 4,700 165,511
British Vita PLC 18,800 62,792
Ciba-Geigy AG 260 317,200
Freeport-McMoRan, Inc. 7,500 266,250
Hercules, Inc. 8,800 486,200
Holliday Chemical Holdings PLC 16,700 32,170
IMC Global, Inc. 4,200 158,025
Monsanto Co. 18,500 601,250
Olin Corp. 5,300 473,025
Toagosei Co. Ltd. 4,000 21,090
UBE Industries Ltd. 8,000 30,484
--------------------------
2,762,692
--------------------------
CHEMICALS--SPECIALTY (0.2%)
Asahi Glass Co. Ltd. 13,000 155,617
Cytec Industries, Inc.* 3,000 256,500
NGK Insulators 4,000 44,958
--------------------------
457,075
--------------------------
METALS & MINING (0.3%)
Aluminum Co. of America 9,000 516,375
Mitsubishi Materials Corp. 6,000 32,677
Nippon Light Metal Co. 7,000 39,786
Pechiney SA (A Shares)* 1,120 45,264
Western Mining Corp. Ltd. 7,312 52,296
United Dominion Industries Ltd. 10,000 230,000
--------------------------
916,398
--------------------------
PAPER (0.0%)
Fletcher Forestry Shares 14,000 17,412
KNP BT (Kon) N.V. 2,400 57,559
Kokuyo Co. 1,000 27,688
Mayr-Melnhof Karton Aktien*+ 380 16,369
--------------------------
119,028
--------------------------
STEEL (0.3%)
Nippon Steel Corp. 17,000 58,409
Nisshin Steel Co. Ltd. 36,000 139,809
NKK Corp.* 25,000 75,844
Pohang Iron & Steel Co. Ltd. (ADR) 2,000 48,750
Tokyo Steel Manufacturing Co. Ltd. 8,000 157,171
Usinor Sacilor* 3,500 50,518
--------------------------
530,501
--------------------------
TOTAL BASIC MATERIALS (1.8%) 4,785,694
--------------------------
BUSINESS SERVICES
Environmental Control (0.4%)
USA Waste Services, Inc.* 22,500 666,563
WMX Technologies, Inc. 17,000 556,750
--------------------------
1,223,313
--------------------------
PRINTING, PUBLISHING &
BROADCASTING (0.8%)
Cablevision Systems Corp.
(Class A)* 6,000 277,500
<PAGE>
COMMON STOCKS (Continued):
CEP Communications* 240 $ 20,295
Marieberg Tidings AB
(Series A) 3,500 87,732
New York Times Co. 17,500 570,938
Singapore Press Holdings 3,000 58,894
TCI Group (Class A)* 30,000 543,750
Television Broadcasts 12,000 45,034
Television Francaise 750 85,727
Viacom, Inc.* 12,860 499,933
--------------------------
2,189,803
--------------------------
PROFESSIONAL SERVICES (0.1%)
Associated First Capital Corp.* 7,500 282,188
Dainippon Printing Co. Ltd. 4,000 77,489
--------------------------
359,677
--------------------------
TRUCKING, SHIPPING (0.5%)
Bergesen Dy AS (A Shares) 4,400 91,509
Kamigumi Co. Ltd. 5,000 45,689
Mayne Nickless Ltd. 4,000 23,358
Nedlloyd Groep N.V. 2,040 47,011
Nippon Express Co. Ltd. 7,000 68,442
Peninsular & Oriental Steam
Navigation Co. 12,391 93,552
Thomas Nationwide Transport* 16,000 17,983
Toyo Kanetsu 6,000 30,594
Xtra Corp. 13,300 588,525
--------------------------
1,006,663
--------------------------
TOTAL BUSINESS SERVICES (1.8%) 4,779,456
--------------------------
CAPITAL GOODS
AEROSPACE (0.3%)
Boeing Co. 5,600 487,900
Coltec Industries, Inc.* 11,000 156,750
General Electric Co. PLC 17,600 94,875
General Motors Corp. (Class H) 500 30,063
Swire Pacific Ltd. (Class A) 5,000 42,793
--------------------------
812,381
--------------------------
BUILDING & CONSTRUCTION (0.4%)
American Standard Companies, Inc.* 6,700 221,100
Babcock International Group PLC 15,000 20,739
Bouygues 960 107,118
Daito Trust Construction Co. 7,000 104,902
GTM Entrepose 700 45,449
Maeda Road Construction Co. 2,000 34,541
Marley PLC 28,687 57,489
Matsushita Electric Works Ltd. 6,000 65,244
Mowlem (John) & Co. PLC 35,000 48,935
National House Industrial Co. 3,000 46,877
Shimizu Corp. 6,000 66,341
Uralita 4,230 39,661
Wimpey (George) PLC 59,000 136,568
--------------------------
994,964
--------------------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.2%)
Hepworth PLC 22,200 99,669
Lafarge Corp. 1,300 78,719
Louisiana Pacific Corp. 4,700 103,988
</TABLE>
B-43
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Martin Marietta Materials, Inc. 4,200 $ 101,850
Rugby Group PLC 57,000 97,404
Stora Kopparbergs (Series B) 6,000 79,276
--------------------------
560,906
--------------------------
ELECTRICAL EQUIPMENT (0.7%)
General Electric Co. 19,300 1,669,450
Sumitomo Electric Industries 5,000 71,732
Ushio, Inc.* 6,000 73,468
--------------------------
1,814,650
--------------------------
MACHINERY (0.2%)
Amano Corp. 7,000 104,263
Cincinnati Milacron, Inc. 6,000 144,000
Daifuku Co. 5,000 76,758
Deere & Co. 6,400 256,000
Furukawa Co. Ltd. 7,000 36,780
Ishikawajima Harima Heavy
Industries 8,000 39,110
KSB AG-Vorzug* 590 75,270
Legris Industries* 1,470 67,438
Mitsubishi Heavy Industries Ltd. 9,000 78,375
--------------------------
877,994
--------------------------
TOTAL CAPITAL GOODS (1.8%) 5,060,895
--------------------------
CONSUMER CYCLICALS
AIRLINES (0.4%)
Delta Air Lines, Inc. 5,000 415,000
Lufthansa AG 590 83,612
Northwest Airlines Corp.
(Class A)* 11,800 466,100
Qantas Airways Ltd. 7,000 11,829
Singapore Airlines Ltd. 2,000 21,120
--------------------------
997,661
--------------------------
APPAREL, TEXTILE (0.1%)
Baird (William) PLC* 6,820 21,084
Coats Viyella PLC 12,595 33,654
Cone Mills Corp. NC* 12,000 135,000
Courtauld Textiles PLC 6,100 34,020
Kuraray Co. Ltd. 9,000 101,156
--------------------------
324,914
--------------------------
AUTOS & TRUCKS (0.6%)
Autozone, Inc.* 30,000 1,042,500
Bajaj Auto Ltd. (GDR)* 2,000 76,250
Honda Motor Corp. 2,000 51,903
Peugeot SA 900 120,542
Toyota Motor Corp. 10,000 250,377
--------------------------
1,541,572
--------------------------
AUTO RELATED (0.4%)
Goodyear Tire & Rubber Co. 10,000 482,500
Mabuchi Motor Co. 1,000 63,782
Magna International, Inc.
(Class A) 11,500 529,000
Magneti Marelli Spa* 9,300 13,267
Sumitomo Rubber Industries, Inc. 3,000 26,015
Varta AG* 150 32,157
Yamatake-Honeywell Co. 4,000 72,737
--------------------------
1,219,458
--------------------------
<PAGE>
COMMON STOCKS (Continued):
FOOD SERVICES, LODGING (0.5%)
Host Marriott Corp.* 14,600 $ 191,625
John Q Hammons Hotels, Inc. (Class
A)* 15,000 163,125
McDonald's Corp. 21,740 1,016,345
--------------------------
1,371,095
--------------------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.6%)
Black & Decker Corp. 25,000 965,625
Electrolux B 1,480 74,532
First Brands Corp. 12,500 337,500
Forbo Holdings AG 270 114,480
Matsushita Electric Industrial Co. 9,000 167,771
--------------------------
1,659,908
--------------------------
LEISURE RELATED (0.8%)
Disney (Walt) Co. 16,666 1,047,875
Hasbro, Inc. 4,600 164,450
ITT Corp.* 7,500 496,875
Resorts World BHD 13,000 74,524
Salomon SA* 95 86,888
Shimano, Inc. 3,000 53,731
Softkey International, Inc.* 4,700 89,006
Sony Music Entertainment, Inc. 2,000 93,206
--------------------------
2,106,555
--------------------------
PHOTO & OPTICAL (0.0%)
Fuji Photo Film Co. 1,000 31,617
--------------------------
RETAIL--GENERAL (0.6%)
Federated Department Stores, Inc.* 19,900 679,088
Fingerhut Companies, Inc. 12,000 187,500
Hornbach Holding AG* 900 77,533
Lowe's Cos., Inc. 4,150 149,919
Rinascente 14,300 102,465
Rite Aid Corp. 5,000 148,750
Sainsbury (J) PLC 18,600 109,512
Sears PLC 50,900 78,282
Thrifty Payless Holdings, Inc.-B* 5,000 86,250
Woolworths Ltd. 40,026 96,577
--------------------------
1,715,876
--------------------------
TOTAL CONSUMER CYCLICALS (4.0%) 10,968,656
--------------------------
CONSUMER NONCYCLICALS
BEVERAGES (0.1%)
Coca-Cola Amatil Ltd. 7,000 77,738
Grand Metropolitan 20,000 132,669
Kirin Brewery Co. 10,000 122,447
Lion Nathan Ltd. 18,000 47,125
--------------------------
379,979
--------------------------
FOODS (0.7%)
BSN Gervais Danone 860 130,231
Cadbury Schweppes PLC 10,800 85,399
Hazlewood Foods PLC 29,500 46,287
House Foods Industry 3,000 57,020
Nabisco Holdings Corp.
(Class A) 15,750 557,156
Nestle AG 153 174,910
Northern Foods PLC 17,500 50,838
</TABLE>
B-44
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Suedzucker AG* 190 $ 94,710
Tate & Lyle PLC 16,700 118,821
Whitman Corp. 21,000 506,625
Yakult Honsha Co. 4,000 56,655
Yamakazi Baking Co. 3,000 55,649
--------------------------
1,934,301
--------------------------
CONTAINERS (0.2%)
Crown Cork & Seal, Inc. 12,000 540,000
Schmalbach Lubeca AG* 440 86,516
--------------------------
626,516
--------------------------
DRUGS (1.6%)
Amgen, Inc.* 14,000 756,000
Apothekers Cooperatie Opg-CV* 430 11,523
Astra AB (A Shares) 2,800 123,882
Eisai Co. Ltd. 4,200 79,444
Glaxo-Wellcome PLC 6,500 87,497
Merck & Co., Inc. 20,000 1,292,500
Orion-Yhtymae Oy (B Shares) 2,295 76,687
Pfizer, Inc. 15,400 1,099,175
Revco D.S., Inc.* 3,000 71,625
Sandoz AG 15 17,172
Sankyo Co. 1,000 25,951
Santen Pharmaceutical Co. 2,000 46,603
Taisho Pharmaceutical Co. 3,000 64,970
Takeda Chemical Industries 3,000 53,182
Warner-Lambert Co. 9,000 495,000
Yamanouchi Pharmaceutical 5,000 108,740
--------------------------
4,409,951
--------------------------
HOSPITAL SUPPLIES & SERVICES (1.4%)
Baxter International, Inc. 15,000 708,750
Columbia/HCA Healthcare Corp. 15,000 800,625
Johnson and Johnson 10,000 495,000
Steris Corp.* 6,600 211,200
United Healthcare Corp. 20,000 1,010,000
Value Health, Inc.* 30,500 720,563
--------------------------
3,946,138
--------------------------
RETAIL--FOOD (0.1%)
Ito Yokado Co. Ltd. 1,000 60,401
McBride PLC 12,700 25,846
Seven-Eleven Japan Ltd. 4,000 255,494
--------------------------
341,741
--------------------------
SOAPS & TOILETRIES (0.8%)
Colgate Palmolive Co. 12,460 1,055,985
Gillette Corp. 13,235 825,533
KAO Corp. 8,000 108,192
Shiseido Co. 6,000 76,758
--------------------------
2,066,468
--------------------------
TOBACCO (1.5%)
BAT Industries 23,000 179,010
Hanjaya Mandala Sampoerna* 9,000 102,470
Japan Tobacco, Inc.* 11 84,434
Loews Corp. 5,000 394,375
Philip Morris Cos., Inc. 28,400 2,953,600
Tabacalera SA* 1,800 90,713
--------------------------
3,804,602
--------------------------
TOTAL CONSUMER NONCYCLICALS (6.4%) 17,509,696
--------------------------
<PAGE>
COMMON STOCKS (Continued):
CREDIT SENSITIVE
BANKS (1.2%)
AMMB Holdings BHD 5,000 $ 70,154
Bangkok Bank Public Co. 2,000 27,099
Bankinter-Banco Interc Espana 960 107,487
Banque Nationale de Paris 3,248 114,091
Chase Manhattan Corp. 7,500 529,688
Chiba Bank 5,000 44,136
Christiania Bank OG
Kreditkasse ASA 36,000 84,853
Dao Heng Bank Group Ltd. 16,000 61,803
Den Danske Bank 1,700 114,024
Deutsche Bank AG 2,100 99,569
First Union Corp. 20,000 1,217,500
Kredietbank 170 50,896
Malayan Banking Berhad 4,000 38,485
Merita Ltd. (A Shares)* 23,134 48,439
Mitsui Trust & Banking Co. 19,000 222,232
Overseas Chinese Bank 6,000 70,163
Overseas Chinese Bank--Rights* 600 4,805
Overseas Union Bank Ltd. 11,000 75,620
Philippine Commercial
International Bank* 1,000 12,500
Royal Bank of Scotland Group 11,300 86,544
Thai Farmers Bank Public Co. 3,000 32,850
Tokai Bank 9,000 116,782
--------------------------
3,229,720
--------------------------
FINANCIAL SERVICES (0.8%)
Daiwa Securities Co. Ltd. 3,000 38,653
Dean Witter Discover & Co. 9,500 543,875
ING Groep N.V. 4,800 143,265
Japan Securities Finance Co. 8,000 129,392
MBNA Corp. 35,800 1,020,300
Nikko Securities Co. 6,000 67,437
Nomura Securities Co. 6,000 117,330
Rashid Hussain BHD* 6,000 22,008
Sun Hung Kai Properties 4,000 40,435
--------------------------
2,122,695
--------------------------
INSURANCE (1.9%)
Aetna Life & Casualty Co. 2,500 178,750
American International
Group, Inc. 5,500 542,438
AMEV N.V. 4,780 137,062
Assurances Generales de France* 3,330 90,237
Baloise Holdings 50 108,800
General Re Corp. 3,700 563,325
Irish Life 21,229 83,775
Istituto Naz Delle Assicurazioni* 60,000 89,510
MGIC Investment Corp. 6,000 336,750
Mitsui Marine & Fire
Insurance Co. 9,000 71,632
PMI Group, Inc. 12,000 510,000
Sumitomo Marine & Fire Insurance
Co. 8,000 69,813
TIG Holdings, Inc. 25,000 725,000
Transatlantic Holdings, Inc. 4,000 280,500
Travelers Group, Inc. 33,000 1,505,625
--------------------------
5,293,217
--------------------------
</TABLE>
B-45
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
MORTGAGE RELATED (0.4%)
Federal National Mortgage
Association 35,200 $ 1,179,200
--------------------------
REAL ESTATE (0.2%)
British Land Co. 12,800 84,113
Hysan Development Co. Ltd. 7,000 21,432
Hysan Development Co.
Ltd.-Warrants* 300 159
Klepierre 150 18,370
New World Development Co. 5,000 23,189
Sefimeg* 600 40,589
Simco S.A. 400 36,934
Societe des Immeubles
de France SA* 620 40,014
Sumitomo Realty & Development Co. 10,000 79,225
Unibail S.A. 800 79,934
Union Immobiliere de France* 470 38,464
Wharf Holdings 11,000 39,363
--------------------------
501,786
--------------------------
UTILITY--ELECTRIC (0.2%)
Consolidated Electric Power
Asia Ltd. 37,000 61,183
Malakoff BHD* 12,000 52,435
Manila Electric Co. 5,000 52,481
National Power PLC 9,200 74,319
Tokyo Electric Power Co., Inc. 4,000 101,613
Veba AG 3,100 164,923
--------------------------
506,954
--------------------------
UTILITY--GAS (0.1%)
Anglian Water PLC 11,700 107,783
Hong Kong & China Gas Co. 13,200 21,060
Hong Kong & China Gas
Co.--Warrants* 1,100 288
Osaka Gas Co. 14,000 51,300
Tokyo Gas Co. 35,000 127,930
--------------------------
308,361
--------------------------
UTILITY--TELEPHONE (0.6%)
AT&T Corp. 13,000 806,000
British Telecommunications 15,700 84,389
Tele Danmark AS (B Shares) 1,530 76,671
Telecom Corp. of New Zealand 19,000 79,902
Telecom Italia Spa 50,000 107,562
Telephone & Data Systems, Inc. 7,500 337,500
--------------------------
1,492,024
--------------------------
TOTAL CREDIT SENSITIVE (5.4%) 14,633,957
--------------------------
ENERGY
COAL & GAS PIPELINES (0.0%)
Petronas Gas BHD* 10,000 42,894
--------------------------
OIL--DOMESTIC (0.3%)
Enron Oil and Gas Co. 6,200 172,825
Louisiana Land & Exploration Corp. 12,600 726,075
--------------------------
898,900
--------------------------
<PAGE>
COMMON STOCKS (Continued):
OIL--INTERNATIONAL (1.4%)
Elf Aquitaine 1,150 $ 84,636
ENI Spa 16,800 83,853
Enterprise Oil PLC 14,200 101,475
Exxon Corp. 21,700 1,885,188
Mitsubishi Oil Co. 8,000 68,351
Mobil Corp. 12,000 1,345,500
Repsol SA 1,940 67,529
Total Campagnie Francaise 2,300 170,703
--------------------------
3,807,235
--------------------------
OIL--SUPPLIES & CONSTRUCTION (0.4%)
BJ Services Co.* 14,200 498,775
Schlumberger, Ltd. 6,200 522,350
--------------------------
1,021,125
--------------------------
RAILROADS (0.6%)
Burlington Northern Santa Fe 6,600 533,775
Canadian Pacific Ltd. 11,000 242,000
East Japan Railway Co. 28 147,119
Guangshen Railway Co. Ltd. (ADR)* 1,000 19,125
Union Pacific Corp. 11,600 810,550
--------------------------
1,752,569
--------------------------
TOTAL ENERGY (2.7%) 7,522,723
--------------------------
TECHNOLOGY
ELECTRONICS (2.3%)
Advanced Semiconductor Engineering
(GDR)* 3,400 30,600
Altera Corp.* 20,000 760,000
Austria Mikro Systeme 70 6,541
Bay Networks, Inc.* 8,200 211,150
Cisco Systems, Inc.* 21,600 1,223,100
Hirose Electric 2,000 123,726
Hoya Corp. 5,000 161,740
Intel Corp. 10,000 734,375
Intergraph Corp.* 10,500 127,313
Kandenko Co. Ltd. 4,000 50,806
Motorola, Inc. 9,650 606,744
Pace Micro Technology PLC* 14,400 42,504
Rohm Co. Ltd. 5,000 330,790
Seagate Technology, Inc.* 4,000 180,000
TDK Corp. 7,000 418,331
3Com Corp.* 29,000 1,326,750
--------------------------
6,334,470
--------------------------
OFFICE EQUIPMENT (0.9%)
Canon, Inc. 6,000 125,006
Ceridian Corp.* 12,000 606,000
Compaq Computer Corp.* 300 14,775
CompUSA, Inc.* 20,200 689,325
Digital Equipment Corp.* 5,000 225,000
Hewlett-Packard Co. 6,000 597,750
Sterling Software, Inc.* 4,000 308,000
--------------------------
2,565,856
--------------------------
</TABLE>
B-46
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
OFFICE EQUIPMENT SERVICES (1.3%)
Electronic Data Systems Corp. 17,000 $ 913,750
First Data Corp. 10,300 820,138
Informix Corp.* 23,000 517,500
NTT Data Communications Systems
Corp.* 3 89,916
Oracle Corp.* 31,600 1,246,225
--------------------------
3,587,529
--------------------------
TELECOMMUNICATIONS (1.4%)
AirTouch Communications, Inc.* 18,000 508,500
Asia Satellite Telecommunications
Holdings Ltd.* 2,000 5,930
DDI Corp. 45 393,110
DSC Communications Corp.* 20,500 617,562
Korea Mobile Telecommunications
(ADR)* 9,000 154,125
MCI Communications Corp. 5,000 128,125
Mobilemedia Corp.* 13,400 162,475
Nokia Corp. (ADR) 16,300 603,100
PT Indosat 16,000 48,120
PT Telekomunikasi Indonesia* 15,000 22,718
Scientific Atlanta, Inc. 19,000 294,500
Teleport Communications Group,
Inc. (A Shares)* 5,600 107,100
Vanguard Cellular Systems, Inc.
(Class A)* 25,000 543,750
Vodafone Group 33,000 122,781
--------------------------
3,711,896
--------------------------
TOTAL TECHNOLOGY (5.9%) 16,199,751
--------------------------
DIVERSIFIED
MISCELLANEOUS (0.7%)
Allied Signal, Inc. 18,700 1,068,238
BTR PLC 32,200 126,808
Cie Generale des Eaux 700 78,243
Citic Pacific Ltd. 10,000 40,435
First Pacific Co.* 33,000 50,732
U.S. Industries, Inc.* 24,100 581,413
--------------------------
TOTAL DIVERSIFIED (0.7%) 1,945,869
--------------------------
TOTAL COMMON STOCKS (30.5%)
(Cost $80,142,762) 83,406,697
--------------------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA 286 123,754
--------------------------
CREDIT SENSITIVE (0.0%)
UTILITY--ELECTRIC
Korea Electric Power (ADR) 2,000 48,500
--------------------------
TECHNOLOGY (0.0)
TELECOMMUNICATIONS
Nokia Oy Cum 1,310 48,355
--------------------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $203,990) 220,609
--------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- -------------- -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (2.5%)
PRINTING, PUBLISHING &
BROADCASTING
Time Warner Entertainment Co.
8.375%, 03/15/23 $7,000,000 $ 6,815,340
-------------
CONSUMER CYCLICALS
AUTO RELATED (4.3%)
Auburn Hills Trust
12.0% Deb., 05/01/20 4,300,000 6,210,920
Ford Motor Credit Co.
6.125%, 01/09/06 6,000,000 5,484,600
-------------
TOTAL CONSUMER CYCLICALS (4.3%) 11,695,520
-------------
CREDIT SENSITIVE
BANKS (2.2%)
Chase Manhattan Corp.
8.625% Sub. Deb., 05/01/02 5,500,000 5,908,925
Sumitomo Bank
8.5% Conv., 05/31/01 Yen11,000,000 108,306
-------------
6,017,231
-------------
INSURANCE (2.5%)
Prudential Insurance Co.
8.10%, 07/15/15+ $6,800,000 6,709,967
-------------
MORTGAGE RELATED (18.4%)
Federal National Mortgage
Association
6.0%, 11/01/10 17,082,892 16,148,680
6.5%, 01/01/11 3,919,711 3,787,421
7.0%, 05/01/26 18,377,740 17,682,695
Government National Mortgage
Association
7.5%, 01/15/26 6,908,409 6,806,890
Premier Auto Trust
7.15%, 02/04/99 5,650,000 5,710,002
-------------
50,135,688
-------------
U.S. GOVERNMENT (33.1%)
U.S. Treasury:
5.875% Note, 08/15/98 14,910,000 14,821,460
5.5% Note, 11/15/98 27,000,000 26,578,125
7.75% Note, 12/31/99 5,000,000 5,210,935
6.125% Note, 09/30/00 20,000,000 19,768,740
6.5% Note, 08/15/05 15,260,000 15,031,100
7.625% Bond, 02/15/25 8,575,000 9,244,921
-------------
90,655,281
-------------
TOTAL CREDIT SENSITIVE (56.2%) 153,518,167
-------------
TOTAL LONG-TERM DEBT SECURITIES (63.0%)
(Amortized Cost $174,543,523) 172,029,027
-------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Citicorp
5.60%, due 07/01/96 3,000,000 2,999,067
Corporate Asset Securitization
Australia
5.60%, due 07/01/96 1,400,000 1,399,564
-------------
TOTAL COMMERCIAL PAPER (1.6%) 4,398,631
-------------
</TABLE>
B-47
<PAGE>
THE HUDSON RIVER TRUST
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------- ------------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
TIME DEPOSITS (3.9%)
Mitsubishi Bank Ltd.-N.Y.
5.6875%, due 07/01/96 $10,600,000 $ 10,600,000
-------------
TOTAL SHORT-TERM DEBT SECURITIES (5.5%)
(Amortized Cost $14,998,631) 14,998,631
-------------
TOTAL INVESTMENTS (99.1%)
(Cost/Amortized Cost
$269,888,906) 270,654,964
CASH AND RECEIVABLES
LESS LIABILITIES (0.9%) 2,390,479
-------------
NET ASSETS (100.0%) $273,045,443
=============
</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-48
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ------------- --------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.2%)
Akzo Nobel N.V. 12,000 $ 1,438,983
Bayer AG 45,600 1,605,813
British Vita PLC 178,600 596,528
Ciba-Geigy AG 1,890 2,305,800
Freeport-McMoRan, Inc. 185,800 6,595,900
Hercules, Inc. 61,200 3,381,300
Holliday Chemical Holdings PLC 160,200 308,600
IMC Global, Inc. 44,700 1,681,838
Monsanto Co. 305,000 9,912,500
Olin Corp. 62,200 5,551,350
Toagosei Co. Ltd. 39,000 205,629
UBE Industries Ltd. 64,000 243,871
--------------------------
33,828,112
--------------------------
CHEMICALS--SPECIALTY (0.4%)
Asahi Glass Co. Ltd. 120,000 1,436,469
Crompton & Knowles Corp. 37,800 633,150
Cytec Industries, Inc.* 28,900 2,470,950
NGK Insulators 32,000 359,666
UCAR International, Inc.* 20,100 836,663
--------------------------
5,736,898
--------------------------
METALS & MINING (0.6%)
Aluminum Co. of America 68,710 3,942,236
Century Aluminum Co.* 46,100 726,075
Gibraltar Steel Corp.* 36,300 735,075
Kaiser Aluminum Corp.* 43,300 476,300
Mitsubishi Materials Corp. 51,000 277,754
Nippon Light Metal Co. 69,000 392,178
Nord Resources Corp.* 26,078 120,611
Pechiney SA (A Shares)* 11,310 457,083
United Dominion Industries Ltd. 60,000 1,380,000
Western Mining Corp. Ltd. 68,415 489,314
--------------------------
8,996,626
--------------------------
PAPER (0.1%)
Fletcher Forestry Shares 122,000 151,736
KNP BT (Kon) N.V. 23,000 551,610
Kokuyo Co. 13,000 359,940
Mayr-Melnhof Karton Aktien*+ 3,625 156,149
--------------------------
1,219,435
--------------------------
STEEL (0.2%)
Lukens, Inc. 20,000 477,500
Nippon Steel Corp. 164,000 563,476
Nisshin Steel Co. Ltd. 351,000 1,363,138
NKK Corp.* 240,000 728,103
Pohang Iron & Steel Co. Ltd. (ADR) 13,000 316,875
Tokyo Steel Manufacturing Co. Ltd. 73,000 1,434,185
Usinor Sacilor* 31,000 447,441
--------------------------
5,330,718
--------------------------
TOTAL BASIC MATERIALS (3.5%) 55,111,789
--------------------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.9%)
United Waste Systems, Inc.* 20,400 657,900
<PAGE>
COMMON STOCKS (Continued):
USA Waste Services, Inc.* 266,800 $ 7,903,950
WMX Technologies, Inc. 188,000 6,157,000
--------------------------
14,718,850
--------------------------
PRINTING, PUBLISHING &
BROADCASTING (1.8%)
Applied Graphics Technologies,
Inc.* 41,000 650,875
Cablevision Systems Corp.
(Class A)* 172,900 7,996,625
CEP Communications* 2,400 202,945
Clear Channel Communications,
Inc.* 7,700 634,288
EZ Communications, Inc.* 11,500 273,125
Infinity Broadcasting Corp. (Class
A)* 20,250 607,500
Lodgenet Entertainment Corp.* 47,000 646,250
Marieberg Tidings AB (Series A) 32,800 822,175
New York Times Co. 136,700 4,459,838
Singapore Press Holdings 30,000 588,944
TCI Group (Class A)* 250,000 4,531,250
Tele-Communications International,
Inc.* 110,000 1,938,750
Television Broadcasts 117,000 439,085
Television Francaise 6,950 794,402
Viacom, Inc. (Class B)* 100,011 3,887,928
--------------------------
28,473,980
--------------------------
PROFESSIONAL SERVICES (0.3%)
ADT Ltd.* 37,600 709,700
Accustaff, Inc.* 14,600 397,850
Dainippon Printing Co. Ltd. 42,000 813,634
Equity Corporation International* 23,100 623,700
Ha-Lo Industries, Inc.* 38,850 1,010,100
Loewen Group, Inc. 30,300 916,575
Romac International, Inc.* 20,200 515,100
--------------------------
4,986,659
--------------------------
TRUCKING, SHIPPING (0.8%)
Bergesen Dy AS (A Shares) 40,000 831,896
Kamigumi Co. Ltd. 49,000 447,754
Mayne Nickless Ltd. 43,005 251,132
Nedlloyd Groep N.V. 19,000 437,852
Nippon Express Co. Ltd. 65,000 635,537
Peninsular & Oriental Steam
Navigation Co. 118,489 894,593
Sea Containers Ltd. 98,800 1,877,200
Thomas Nationwide Transport* 173,000 194,436
Toyo Kanetsu 54,000 275,342
Xtra Corp. 126,800 5,610,900
--------------------------
11,456,642
--------------------------
TOTAL BUSINESS SERVICES (3.8%) 59,636,131
--------------------------
CAPITAL GOODS
AEROSPACE (0.4%)
Boeing Co. 27,200 2,369,800
Coltec Industries, Inc.* 115,000 1,638,750
General Electric Co. PLC 170,000 916,410
General Motors Corp. (Class H) 3,000 180,375
Swire Pacific Ltd. (Class A) 47,000 402,254
--------------------------
5,507,589
--------------------------
</TABLE>
B-49
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
BUILDING & CONSTRUCTION (0.6%)
American Standard Companies, Inc.* 47,000 $ 1,551,000
Babcock International Group PLC 145,500 201,170
Bouygues 9,300 1,037,702
Daito Trust Construction Co. 73,000 1,093,983
GTM Entrepose 6,750 438,256
Maeda Road Construction Co. 19,000 328,140
Marley PLC 273,104 547,305
Matsushita Electric Works Ltd. 59,000 641,568
Mowlem (John) & Co. PLC 332,000 464,186
National House Industrial Co. 30,000 468,771
Shimizu Corp. 57,000 630,237
Uralita 39,600 371,292
Wimpey (George) PLC 562,000 1,300,870
--------------------------
9,074,480
--------------------------
BUILDING MATERIALS & FOREST PRODUCTS (0.6%)
Buckeye Cellulose Corp.* 17,000 469,625
Hepworth PLC 231,000 1,037,101
Hughes Supply, Inc. 16,700 580,325
Lafarge Corp. 12,500 756,913
Louisiana Pacific Corp. 36,200 800,925
Martin Marietta Materials, Inc. 160,000 3,880,000
Rugby Group PLC 551,000 941,576
Stora Kopparbergs (Series B) 56,700 749,158
--------------------------
9,215,623
--------------------------
ELECTRICAL EQUIPMENT (0.9%)
General Electric Co. 144,600 12,507,900
Sumitomo Electric Industries 46,000 659,935
Ushio, Inc.* 58,000 710,193
--------------------------
13,878,028
--------------------------
MACHINERY (0.5%)
Amano Corp. 61,000 908,576
Cincinnati Milacron, Inc. 70,000 1,680,000
Daifuku Co. 46,000 706,173
Deere & Co. 54,100 2,164,000
Furukawa Co. Ltd. 67,000 352,035
Ishikawajima Harima Heavy
Industries 74,000 361,767
KSB AG-Vorzug* 5,600 714,431
Legris Industries* 13,960 640,435
Mitsubishi Heavy Industries Ltd. 90,000 783,753
Pentair, Inc. 23,100 693,000
--------------------------
9,004,170
--------------------------
TOTAL CAPITAL GOODS (3.0%) 46,679,890
--------------------------
CONSUMER CYCLICALS
AIRLINES (0.5%)
America West Airlines, Inc. (Class
B)* 31,900 701,800
Delta Air Lines, Inc. 25,000 2,075,000
Lufthansa AG 5,700 807,780
Mesa Airlines, Inc.* 57,100 678,063
Northwest Airlines Corp. (Class
A)* 94,800 3,744,600
Qantas Airways Ltd. 62,000 104,767
Singapore Airlines Ltd. 17,000 179,518
--------------------------
8,291,528
--------------------------
<PAGE>
COMMON STOCKS (Continued):
APPAREL, TEXTILE (0.4%)
Baird (William) PLC* 65,680 $ 203,047
Coats Viyella PLC 124,100 331,598
Courtauld Textiles PLC 58,700 327,374
Designer Holdings Ltd.* 29,100 774,788
Kuraray Co. Ltd. 86,000 966,601
Nautica Enterprises, Inc.* 26,300 756,125
Nine West Group, Inc.* 22,800 1,165,650
Polymer Group, Inc.* 34,700 607,250
Tommy Hilfiger Corp.* 15,100 809,738
Warnaco Group, Inc. (Class A) 24,300 625,725
--------------------------
6,567,896
--------------------------
AUTOS & TRUCKS (0.9%)
Autozone, Inc.* 271,600 9,438,100
Bajaj Auto Ltd. (GDR)* 18,400 701,500
Honda Motor Corp. 19,000 493,078
Peugeot SA 8,200 1,098,275
Toyota Motor Corp. 97,000 2,428,656
--------------------------
14,159,609
--------------------------
AUTO RELATED (0.5%)
Goodyear Tire & Rubber Co. 86,650 4,180,863
Mabuchi Motor Co. 7,000 446,475
Magna International, Inc. (Class
A) 18,450 848,700
Magneti Marelli Spa* 89,900 128,246
Oxford Resources Corp. (Class A)* 19,300 448,725
Sumitomo Rubber Industries, Inc. 26,000 225,467
Varta AG* 1,700 364,449
Yamatake-Honeywell Co. 36,000 654,635
--------------------------
7,297,560
--------------------------
FOOD SERVICES, LODGING (1.0%)
Doubletree Corp.* 15,200 539,600
Host Marriott Corp.* 122,100 1,602,563
John Q Hammons Hotels, Inc. (Class
A)* 300,000 3,262,500
La Quinta Motor Inns, Inc. 39,300 1,316,550
McDonald's Corp. 176,000 8,228,000
Red Lion Hotels, Inc.* 28,900 606,900
--------------------------
15,556,113
--------------------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.9%)
Black & Decker Corp. 211,700 8,176,913
Electrolux B 14,300 720,136
First Brands Corp. 95,200 2,570,400
Forbo Holdings AG 2,570 1,089,680
Industrie Natuzzi (ADR) 10,800 553,500
Matsushita Electric Industrial Co. 91,000 1,696,349
Tostem Corp. 1,000 29,515
--------------------------
14,836,493
--------------------------
LEISURE RELATED (1.4%)
Cyrk, Inc.* 220,600 3,005,675
Disney (Walt) Co. 138,600 8,714,475
Harman International Industries,
Inc. 14,200 699,350
Hasbro, Inc. 42,100 1,505,075
Heritage Media Corp. (Class A)* 19,300 769,588
ITT Corp.* 60,800 4,028,000
</TABLE>
B-50
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Resorts World BHD 121,000 $ 693,646
Salomon SA* 935 855,164
Shimano, Inc. 30,000 537,305
Softkey International, Inc.* 49,700 941,194
Sony Music Entertainment, Inc. 13,000 605,839
--------------------------
22,355,311
--------------------------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. 13,000 411,020
Oakley, Inc.* 16,200 737,100
--------------------------
1,148,120
--------------------------
RETAIL--GENERAL (1.4%)
Ann Taylor Stores* 17,400 352,350
Consolidated Stores Corp.* 16,900 621,075
Federated Department Stores, Inc.* 132,425 4,519,003
Fingerhut Companies, Inc. 324,200 5,065,625
Hornbach Holding AG* 9,700 835,630
Lowe's Cos., Inc. 26,700 964,538
Payless Cashways, Inc.* 435,000 1,957,500
Petco Animal Supplies, Inc.* 21,800 626,750
Rinascente 135,000 967,324
Sainsbury (J) PLC 180,000 1,059,798
Sears PLC 493,000 758,217
Thrifty Payless Holdings,
Inc.--B* 85,000 1,466,250
Valuevision International, Inc.
(Class A)* 66,300 459,956
Williams-Sonoma, Inc.* 5,800 137,025
Woolworths Ltd. 391,991 945,822
--------------------------
20,736,863
--------------------------
TOTAL CONSUMER CYCLICALS (7.1%) 110,949,493
--------------------------
CONSUMER NONCYCLICALS
BEVERAGES (0.2%)
Coca-Cola Amatil Ltd. 70,000 777,383
Grand Metropolitan 193,000 1,280,255
Kirin Brewery Co. 37,000 453,054
Lion Nathan Ltd. 179,000 468,629
--------------------------
2,979,321
--------------------------
CONTAINERS (0.4%)
Crown Cork & Seal, Inc. 105,000 4,725,000
Hub Group, Inc. (Class A)* 24,000 489,000
Schmalbach Lubeca AG* 4,290 843,527
--------------------------
6,057,527
--------------------------
DRUGS (3.2%)
Advanced Tissue Sciences, Inc.* 33,900 546,637
Amgen, Inc.* 140,000 7,560,000
Apothekers Cooperatie Opg-CV* 5,395 144,574
Astra AB (A Shares) 27,500 1,216,697
Centocor, Inc.* 130,000 3,883,750
Eisai Co. Ltd. 36,600 692,301
Geltex Pharmaceuticals, Inc.* 23,000 431,250
Glaxo-Wellcome PLC 61,000 821,126
Liposome Co., Inc.* 29,300 549,375
Medimmune, Inc.* 32,200 547,400
Merck & Co., Inc. 170,500 11,018,562
Orion-Yhtymae Oy (B Shares) 22,200 741,811
Pfizer, Inc. 107,600 7,679,950
Revco D.S., Inc.* 131,700 3,144,337
Sandoz AG 806 922,709
<PAGE>
COMMON STOCKS (Continued):
Sankyo Co. 14,000 $ 363,321
Santen Pharmaceutical Co. 10,000 233,015
Taisho Pharmaceutical Co. 30,000 649,701
Takeda Chemical Industries 27,000 478,640
Warner-Lambert Co. 140,200 7,711,000
Yamanouchi Pharmaceutical 52,000 1,130,900
--------------------------
50,467,056
--------------------------
FOODS (1.1%)
BSN Gervais Danone 8,300 1,256,879
Cadbury Schweppes PLC 104,000 822,361
Hazlewood Foods PLC 281,000 440,899
House Foods Industry 23,000 437,154
Nabisco Holdings Corp. (Class A) 125,850 4,451,944
Nestle AG 1,480 1,691,936
Northern Foods PLC 184,000 534,528
Suedzucker AG* 1,950 972,019
Tate & Lyle PLC 158,000 1,124,175
Whitman Corp. 183,700 4,431,763
Yakult Honsha Co. 41,000 580,710
Yamakazi Baking Co. 31,000 575,045
--------------------------
17,319,413
--------------------------
HOSPITAL SUPPLIES & SERVICES (2.0%)
Baxter International, Inc. 195,000 9,213,750
Columbia/HCA Healthcare Corp. 100,000 5,337,500
Community Health System, Inc.* 10,400 538,200
Compdent Corp.* 13,700 637,050
Coventry Corp.* 68,500 1,078,875
Ornda Healthcorp.* 55,800 1,339,200
Respironics, Inc.* 25,200 466,200
Rotech Medical Corp.* 33,400 651,300
Steris Corp.* 98,762 3,160,384
Summit Technology, Inc.* 105,000 1,470,000
United Healthcare Corp. 118,000 5,959,000
Value Health, Inc.* 85,000 2,008,125
--------------------------
31,859,584
--------------------------
RETAIL--FOOD (0.2%)
Ito Yokado Co. Ltd. 12,000 724,814
McBride PLC 120,000 244,210
Seven-Eleven Japan Ltd. 45,000 2,874,309
--------------------------
3,843,333
--------------------------
SOAPS & TOILETRIES (1.1%)
Colgate Palmolive Co. 100,900 8,551,275
Gillette Corp. 102,540 6,395,933
KAO Corp. 79,000 1,068,397
Shiseido Co. 59,000 754,786
--------------------------
16,770,391
--------------------------
TOBACCO (2.0%)
BAT Industries 225,000 1,751,182
Hanjaya Mandala Sampoerna* 86,000 979,161
Japan Tobacco, Inc.* 110 844,336
Loews Corp. 65,400 5,158,425
Tabacalera SA* 20,000 1,007,926
Philip Morris Cos., Inc. 209,000 21,736,000
--------------------------
31,477,030
--------------------------
TOTAL CONSUMER NONCYCLICALS (10.2%) 160,773,655
--------------------------
</TABLE>
B-51
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
CREDIT SENSITIVE
BANKS (1.8%)
AMMB Holdings BHD 44,000 $ 617,358
Bangkok Bank Public Co. 22,000 298,094
Bankinter-Banco Interc Espana 9,100 1,018,889
Banque Nationale de Paris 31,570 1,108,947
Chase Manhattan Corp. 50,000 3,531,250
Chiba Bank 48,000 423,704
Christiania Bank OG Kreditkasse
ASA 337,000 794,322
Dao Heng Bank Group Ltd. 164,000 633,479
Den Danske Bank 16,000 1,073,166
Deutsche Bank AG 20,800 986,210
First Union Corp. 175,000 10,653,120
Kredietbank 1,800 538,904
Long-Term Credit Bank of Japan 1,000 7,758
Malayan Banking Berhad 41,000 394,468
Merita Ltd. (A Shares)* 224,570 470,211
Mitsui Trust & Banking Co. 187,000 2,187,233
Overseas Chinese Bank 61,000 713,324
Overseas Chinese Bank--Rights* 6,100 48,852
Overseas Union Bank Ltd. 112,000 769,950
Philippine Commercial
International Bank* 5,000 62,500
Royal Bank of Scotland Group 120,200 920,582
Thai Farmers Bank Public Co. 23,000 251,851
Tokai Bank 78,000 1,012,108
--------------------------
28,516,280
--------------------------
FINANCIAL SERVICES (1.6%)
Daiwa Securities Co. Ltd. 28,000 360,762
Dean Witter Discover & Co. 72,200 4,133,450
ING Groep N.V. 47,400 1,414,742
Japan Securities Finance Co. 72,000 1,164,527
MBNA Corp. 277,500 7,908,750
Merrill Lynch & Co., Inc. 100,700 6,558,088
Nikko Securities Co. 61,000 685,612
Nomura Securities Co. 64,000 1,251,519
RAC Financial Group, Inc.* 22,700 641,275
Rashid Hussain BHD* 57,000 209,080
Sun Hung Kai Properties 33,000 333,592
Union Acceptance Corp. (Class A)* 46,500 720,750
--------------------------
25,382,147
--------------------------
INSURANCE (3.6%)
American International Group, Inc. 46,300 4,566,338
AMEV N.V. 47,200 1,353,418
Assurances Generales de France* 32,200 872,563
Baloise Holdings 500 1,088,000
General Re Corp. 28,500 4,339,125
Irish Life 200,564 791,476
Istituto Naz Delle Assicurazioni* 577,000 860,787
Life Re Corp. 275,500 8,506,063
MGIC Investment Corp. 74,000 4,153,250
Mitsui Marine & Fire Insurance Co. 85,000 676,520
NAC Re Corp. 116,800 3,912,800
PennCorp Financial Group, Inc. 21,800 692,150
<PAGE>
COMMON STOCKS (Continued):
PMI Group, Inc. 50,000 $ 2,125,000
Riscorp, Inc. (Class A)* 32,600 594,950
Sumitomo Marine & Fire Insurance
Co. 73,000 637,045
TIG Holdings, Inc. 210,000 6,090,000
Transatlantic Holdings, Inc. 60,100 4,214,513
Travelers Group, Inc. 242,500 11,064,062
Twentieth Century Industries* 29,000 482,125
--------------------------
57,020,185
--------------------------
MORTGAGE RELATED (0.6%)
Federal National Mortgage
Association 280,200 9,386,700
--------------------------
REAL ESTATE (0.4%)
British Land Co. 124,000 814,842
Hysan Development Co. Ltd. 67,000 205,135
Hysan Development Co.
Ltd.--Warrants* 3,350 1,774
Interstate Hotels Company* 13,000 289,250
JP Realty, Inc. 22,600 483,075
Klepierre 1,400 171,454
Macerich Co. 22,200 466,200
New World Development Co. 50,000 231,890
Sefimeg* 5,800 392,360
Simco S.A. 3,700 341,644
Societe des Immeubles
de France SA* 6,240 402,718
Sumitomo Realty & Development Co. 92,000 728,871
Summit Properties, Inc. 25,900 508,288
Unibail S.A. 7,300 729,397
Union Immobiliere de France* 4,600 376,459
Wharf Holdings 104,000 372,160
--------------------------
6,515,517
--------------------------
UTILITY--ELECTRIC (0.3%)
Consolidated Electric Power
Asia Ltd. 363,000 600,252
Malakoff BHD* 117,000 511,245
Manila Electric Co. 52,000 545,802
National Power PLC 89,000 718,960
Tokyo Electric Power Co., Inc. 36,000 914,515
Veba AG 30,300 1,611,988
--------------------------
4,902,762
--------------------------
UTILITY--GAS (0.2%)
Anglian Water PLC 113,000 1,040,985
Hong Kong & China Gas Co. 130,800 208,685
Hong Kong & China Gas
Co.--Warrants* 10,900 2,851
Osaka Gas Co. 140,000 512,999
Tokyo Gas Co. 332,000 1,213,506
--------------------------
2,979,026
--------------------------
UTILITY--TELEPHONE (1.1%)
AT&T Corp. 118,000 7,316,000
British Telecommunications 152,000 817,017
Tele Danmark AS (B Shares) 14,810 742,156
Telecom Corp. of New Zealand 181,000 761,170
Telecom Italia Spa 540,000 1,161,670
Telephone & Data Systems, Inc. 129,400 5,823,000
--------------------------
16,621,013
--------------------------
TOTAL CREDIT SENSITIVE (9.6%) 151,323,630
--------------------------
</TABLE>
B-52
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
ENERGY
COAL & GAS PIPELINES (0.0%)
Petronas Gas BHD* 95,000 $ 407,496
--------------------------
OIL--DOMESTIC (0.8%)
Diamond Shamrock, Inc. 18,000 519,750
KCS Energy, Inc. 6,000 172,500
Louis Dreyfus Natural Gas
Corp.* 245,400 3,681,000
Louisiana Land & Exploration Corp. 83,200 4,794,400
Tom Brown, Inc.* 140,000 2,397,500
United Meridian Corp.* 18,200 655,200
--------------------------
12,220,350
--------------------------
OIL--INTERNATIONAL (2.1%)
Elf Aquitaine 11,100 816,924
ENI Spa 163,000 813,577
Enterprise Oil PLC 135,000 964,724
Exxon Corp. 191,000 16,593,125
Mitsubishi Oil Co. 76,000 649,335
Mobil Corp. 97,500 10,932,188
Repsol SA 18,800 654,402
Total Campagnie Francaise 23,800 1,766,407
--------------------------
33,190,682
--------------------------
OIL--SUPPLIES & CONSTRUCTION (0.6%)
BJ Services Co.* 89,300 3,136,663
Global Marine, Inc.* 52,500 728,438
Rowan Cos., Inc.* 47,000 693,250
Schlumberger, Ltd. 53,000 4,465,250
Sonat Offshore Drilling, Inc. 13,400 676,700
--------------------------
9,700,301
--------------------------
RAILROADS (1.0%)
Burlington Northern Santa Fe 56,600 4,577,525
Canadian Pacific Ltd. 92,000 2,024,000
East Japan Railway Co. 205 1,077,123
Genesee & Wyoming, Inc.
(Class A)* 20,700 424,350
Guangshen Railway Co. Ltd. (ADR)* 13,000 248,625
Union Pacific Corp. 88,400 6,176,950
--------------------------
14,528,573
--------------------------
TOTAL ENERGY (4.5%) 70,047,402
--------------------------
TECHNOLOGY
ELECTRONICS (3.2%)
Advanced Semiconductor Engineering
(GDR)* 32,060 288,540
Altera Corp.* 125,400 4,765,200
Austria Mikro Systeme 690 64,473
Bay Networks, Inc.* 123,300 3,174,975
BMC Industries, Inc. 41,000 1,178,750
Cisco Systems, Inc.* 191,000 10,815,375
Dassault Systemes (ADR)* 6,400 147,200
Exabyte Corp.* 24,400 318,725
Hirose Electric 23,000 1,422,854
Hoya Corp. 51,000 1,649,746
Hyperion Software Corp.* 39,500 488,813
Intel Corp. 87,500 6,425,781
Intergraph Corp.* 90,000 1,091,250
Kandenko Co. Ltd. 39,000 495,363
<PAGE>
COMMON STOCKS (Continued):
Motorola, Inc. 81,700 $ 5,136,888
Pace Micro Technology PLC* 140,000 413,231
Rohm Co. Ltd. 46,000 3,043,268
Seagate Technology, Inc.* 44,300 1,993,500
TDK Corp. 35,000 2,091,653
Teradyne, Inc.* 34,500 595,125
VLSI Technology, Inc.* 26,100 362,138
3Com Corp.* 111,000 5,078,250
--------------------------
51,041,098
--------------------------
OFFICE EQUIPMENT (1.6%)
Canon, Inc. 58,000 1,208,389
Ceridian Corp.* 157,800 7,968,900
Compaq Computer Corp.* 9,500 467,875
CompUSA, Inc.* 171,100 5,838,788
Digital Equipment Corp.* 30,000 1,350,000
Hewlett-Packard Co. 47,000 4,682,375
Sterling Software, Inc.* 56,100 4,319,700
--------------------------
25,836,027
--------------------------
OFFICE EQUIPMENT SERVICES (2.3%)
Adobe Systems, Inc. 39,300 1,409,888
Comverse Technology, Inc.* 34,500 1,052,250
Electronic Data Systems Corp. 135,000 7,256,250
First Data Corp. 78,000 6,210,750
Informix Corp.* 350,000 7,875,000
NTT Data Communications Systems
Corp.* 32 959,108
Oracle Corp.* 259,450 10,232,059
Saville Systems Ireland (ADR)* 30,600 845,325
--------------------------
35,840,630
--------------------------
TELECOMMUNICATIONS (2.4%)
AirTouch Communications, Inc.* 151,000 4,265,750
Asia Satellite Telecommunications
Holdings Ltd.* 18,000 53,367
Brightpoint, Inc.* 24,800 533,200
Brooks Fiber Properties, Inc.* 13,700 452,100
Comnet Cellular, Inc.* 101,300 3,039,000
DDI Corp. 424 3,703,970
Digi International, Inc.* 22,800 609,900
DSC Communications Corp.* 175,000 5,271,875
Intelcom Group, Inc.* 34,500 862,500
Korea Mobile Telecommunications
(ADR)* 72,000 1,233,000
McLeod, Inc. (Class A)* 22,800 547,200
MFS Communications Co., Inc.* 1,433 53,917
Millicom International Cellular
S.A.* 13,100 623,888
Mobilemedia Corp.* 88,800 1,076,700
Nokia Corp. (ADR) 138,000 5,106,000
Optical Data Systems, Inc.* 30,300 666,600
PT Indosat 155,000 466,165
PT Telekomunikasi Indonesia* 166,000 251,407
Scientific Atlanta, Inc. 282,300 4,375,650
Teleport Communications
Group, Inc. (A Shares)* 70,500 1,348,313
Vodafone Group 315,000 1,171,999
Xircom* 46,100 679,975
--------------------------
36,392,476
--------------------------
TOTAL TECHNOLOGY (9.5%) 149,110,231
--------------------------
</TABLE>
B-53
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------- -------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
DIVERSIFIED
MISCELLANEOUS (0.8%)
Allied Signal, Inc. 153,300 $ 8,757,262
BTR PLC 312,000 1,228,694
Cie Generale des Eaux 6,600 737,717
Citic Pacific Ltd. 111,000 448,832
First Pacific Co.* 318,000 488,867
U.S. Industries, Inc.* 75,900 1,831,088
--------------------------
TOTAL DIVERSIFIED (0.8%) 13,492,460
--------------------------
TOTAL COMMON STOCKS (52.0%)
(Cost $765,116,428) 817,124,681
--------------------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA 2,770 1,198,606
--------------------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Continental Airlines Finance Trust
8.5% Conv.+ 28,200 2,058,600
--------------------------
LEISURE RELATED (0.1%)
Station Casinos, Inc.
7.0% Conv. 26,900 1,546,750
--------------------------
RETAIL--GENERAL (0.1%)
K-Mart Financing I
7.75% Conv.* 11,800 640,150
--------------------------
TOTAL CONSUMER CYCLICALS (0.3%) 4,245,500
--------------------------
CONSUMER NONCYCLICALS (0.1%)
HOSPITAL SUPPLIES & SERVICES
FHP International Corp.
5.0% Conv. Series A 46,700 1,190,850
--------------------------
CREDIT SENSITIVE
BANKS (0.1%)
First Chicago NBD Corp.
5.75% Conv. Series B 30,200 2,012,075
--------------------------
UTILITY--ELECTRIC (0.0%)
Korea Electric Power (ADR) 18,000 436,500
--------------------------
UTILITY--TELEPHONE (0.3%)
LCI International
5.0% Conv. 45,000 3,712,500
--------------------------
TOTAL CREDIT SENSITIVE (0.4%) 6,161,075
--------------------------
TECHNOLOGY
TELECOMMUNICATIONS (0.1%)
MFS Communications Co., Inc.
8.0% Conv.* 34,900 2,216,150
Nokia Oy Cum 12,600 465,089
--------------------------
TOTAL TECHNOLOGY (0.1%) 2,681,239
--------------------------
TOTAL PREFERRED STOCKS (1.0%)
(Cost $11,523,320) 15,477,270
--------------------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
United Waste Systems, Inc.
4.5% Conv., 06/01/01+ $1,135,000 1,288,225
--------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL (NOTE 1)
AMOUNT VALUE
- -------------------------------- --------------- --------------------------
LONG-TERM DEBT SECURITIES (CONTINUED):
<S> <C> <C>
PRINTING, PUBLISHING & BROADCASTING (1.3%)
Time Warner Entertainment Co.
8.375%, 03/15/23 $20,950,000 $20,397,339
--------------------------
PROFESSIONAL SERVICES (0.4%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 805,000 1,699,556
Danka Business Systems PLC
6.75% Conv., 04/01/02 1,415,000 1,664,394
First Financial Management Corp.
5.0% Conv., 12/15/99 1,815,000 3,400,856
--------------------------
6,764,806
--------------------------
TOTAL BUSINESS SERVICES (1.8%) 28,450,370
--------------------------
CAPITAL GOODS
AEROSPACE (1.0%)
Northrop Grumman Corp.
7.75%, 03/01/16+ 15,000,000 14,616,750
--------------------------
MACHINERY (0.0%)
Titan Wheel International, Inc.
4.75% Conv., 12/01/00 330,000 423,638
--------------------------
TOTAL CAPITAL GOODS (1.0%) 15,040,388
--------------------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.1%)
Nine West Group, Inc.
5.5% Conv., 07/15/03 940,000 949,400
--------------------------
FOOD SERVICES, LODGING (0.2%)
HFS, Inc.
4.5% Conv., 10/01/99 727,000 2,820,760
--------------------------
RETAIL--GENERAL (0.3%)
Federated Department
Stores, Inc.
5.0% Conv., 10/01/03 1,260,000 1,442,700
Lowe's Cos., Inc.
3.0% Conv., 07/22/03 1,730,000 2,387,400
Williams-Sonoma, Inc.
5.25% Conv., 04/15/03+ 1,200,000 1,290,000
--------------------------
5,120,100
--------------------------
TOTAL CONSUMER CYCLICALS (0.6%) 8,890,260
--------------------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.4%)
American Medical Response
5.25% Conv., 02/01/01+ 1,250,000 1,365,625
Healthsouth Corp.
5.0% Conv., 04/01/01 1,285,000 2,497,719
Omnicare, Inc.
5.75% Conv., 10/01/03 205,000 752,350
Rotech Medical Corp.
5.25% Conv. Sub. Note,
06/01/03+ 1,560,000 1,489,800
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+ 1,120,000 1,148,000
--------------------------
TOTAL CONSUMER NONCYCLICALS (0.4%) 7,253,494
--------------------------
</TABLE>
B-54
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------- --------------- --------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
CREDIT SENSITIVE
BANKS (0.1%)
Sumitomo Bank
8.5% Conv., 05/31/01 Yen 101,000,000 $ 994,449
--------------------------
FINANCIAL SERVICES (1.9%)
Aames Financial Corp.
5.5% Conv., 03/15/06+ $ 965,000 1,336,525
Commercial Credit Co.
6.125%, 12/01/05 10,000,000 9,197,900
Safeguard Scientifics
6.0% Conv., 02/01/06+ 1,500,000 2,036,250
Santander Financial Issuances
7.0%, 04/01/06 18,300,000 17,699,577
--------------------------
30,270,252
--------------------------
FOREIGN GOVERNMENT (1.1%)
Province of Ontario
6.0%, 02/21/06 18,200,000 16,668,834
--------------------------
INSURANCE (1.4%)
John Hancock Mutual Life
Insurance Co.
7.375%, 02/15/24+ 23,750,000 22,033,588
--------------------------
MORTGAGE RELATED (7.9%)
Federal National Mortgage
Association:
6.5%, 05/01/11 47,001,372 45,415,076
7.0%, 05/01/26 58,610,092 56,393,459
Government National Mortgage
Association:
7.5%, 12/15/25 14,571,149 14,357,027
7.5%, 01/15/26 8,746,553 8,618,023
--------------------------
124,783,585
--------------------------
UTILITY--TELEPHONE (0.2%)
Worldcom, Inc.
5.0% Conv., 08/15/03 2,345,000 3,423,700
--------------------------
U.S. GOVERNMENT (23.9%)
U.S. Treasury:
7.25% Note, 02/15/98 70,800,000 72,061,160
5.875% Note, 08/15/98 100,500,000 99,903,231
7.75% Note, 12/31/99 35,400,000 36,893,420
7.75% Note, 01/31/00 56,000,000 58,380,000
6.75% Note, 04/30/00 12,600,000 12,733,875
5.75% Note, 08/15/03 24,925,000 23,717,683
6.5% Note, 08/15/05 38,550,000 37,971,750
7.625% Bond, 02/15/25 32,125,000 34,634,763
--------------------------
376,295,882
--------------------------
TOTAL CREDIT SENSITIVE (36.5%) 574,470,290
--------------------------
ENERGY (0.1%)
OIL--SUPPLIES & CONSTRUCTION
Seacor Holdings
6.0% Conv., 07/01/03+ 955,000 1,667,668
--------------------------
TECHNOLOGY
ELECTRONICS (1.1%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ 1,975,000 1,970,063
Applied Magnetics Corp.
7.0% Conv., 03/15/06+ 1,940,000 1,712,050
<PAGE>
LONG-TERM DEBT SECURITIES (Continued):
Broadband Technologies
5.0% Conv., 05/15/01+ $ 1,230,000 $ 1,219,238
C-Cube Microsystems, Inc.
5.875% Conv., 11/01/05 820,000 1,004,500
Checkpoint Systems, Inc.
5.25% Conv., 11/01/05 1,075,000 2,096,250
Conner Peripherals, Inc.
6.5% Conv., 03/01/02 1,080,000 1,131,300
EMC Corp.
4.25% Conv., 01/01/01 605,000 649,619
LSI Logic Corp.
5.5% Conv., 03/15/01+ 595,000 1,280,738
SCI Systems, Inc.
5.0% Conv., 05/01/06+ 1,950,000 2,037,750
Sanmina Corporation
5.5% Conv., 08/15/02+ 1,890,000 2,149,875
3Com Corp.
10.25% Conv., 11/01/01+ 1,415,000 2,210,938
--------------------------
17,462,321
--------------------------
OFFICE EQUIPMENT SERVICES (0.2%)
Comverse Technology, Inc.
5.25% Conv. Euro, 12/01/03 1,400,000 2,238,250
--------------------------
TELECOMMUNICATIONS (0.1%)
BBN Corp.
6.0% Conv., 04/01/12 2,010,000 1,864,275
--------------------------
TOTAL TECHNOLOGY (1.4%) 21,564,846
--------------------------
DIVERSIFIED
MISCELLANEOUS (0.2%)
Thermo Electron Corp.:
5.0% Conv. Euro, 04/15/01 1,425,000 2,867,812
4.25% Conv., 01/03/03+ 190,000 233,700
--------------------------
TOTAL DIVERSIFIED (0.2%) 3,101,512
--------------------------
TOTAL LONG-TERM DEBT SECURITIES (42.0%)
(Amortized Cost $657,363,404) 660,438,828
--------------------------
SHORT-TERM DEBT SECURITIES:
BANK NOTES (0.6%)
NationsBank Corp.
5.5%, due 07/10/96 10,000,000 9,999,946
--------------------------
CERTIFICATES OF DEPOSIT (1.0%)
Canadian Imperial Bank of
Commerce
5.3%, due 07/08/96 15,000,000 15,000,000
--------------------------
COMMERCIAL PAPER
Allianz of America Financial
5.43%, due 09/11/96 10,000,000 9,890,644
Citicorp
5.6%, due 07/01/96 2,100,000 2,099,347
Corporate Asset Securitization
Australia
5.6%, due 07/01/96 3,100,000 3,099,036
Three River Funding
5.43%, due 07/15/96 5,000,000 4,987,933
Unilever PLC
4.96%, due 10/18/96 3,700,000 3,639,194
--------------------------
TOTAL COMMERCIAL PAPER (1.5%) 23,716,154
--------------------------
</TABLE>
B-55
<PAGE>
THE HUDSON RIVER TRUST
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL (NOTE 1)
AMOUNT VALUE
- -------------------------------- --------------- --------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES (Continued):
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
5.625%, due 07/01/96 $5,900,000 $ 5,900,000
Sanwa Bank-N.Y.
5.625%, due 07/01/96 400,000 400,000
Sumitomo Bank
5.6875%, due 07/01/96 5,900,000 5,900,000
--------------------------
TOTAL TIME DEPOSITS (0.8%) 12,200,000
--------------------------
U.S. GOVERNMENT (0.0%)
Federal Home Loan Bank
5.1%, due 07/01/96 600,000 599,830
--------------------------
TOTAL SHORT-TERM DEBT SECURITIES (3.9%)
(Amortized Cost $61,517,890) 61,515,930
--------------------------
TOTAL INVESTMENTS (98.9%) (Cost/Amortized Cost
$1,495,521,042) 1,554,556,709
CASH AND RECEIVABLES
LESS LIABILITIES (1.1%) 18,063,481
--------------------------
NET ASSETS (100.0%) $1,572,620,190
==========================
</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-56
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.7%)
AGA AB (A Shares) 3,400 $ 60,582
Akzo Nobel N.V. 169 20,266
Asahi Chemical Industry Co. 20,000 142,916
Bayer AG 3,500 123,253
BOC Group Co. PLC 1,319 18,933
Ciba-Geigy AG 180 219,600
Dainippon Ink & Chemical, Inc. 65,000 333,805
Freeport-McMoRan, Inc. 106,900 3,794,950
Hercules, Inc. 89,400 4,939,350
IMC Global, Inc. 47,000 1,768,375
Imperial Chemical Industries 12,112 148,270
Indo Gulf Fertilisers (GDR) 50,000 67,500
Ishihara Sangyo Ltd.* 140,000 557,774
L'Air Liquide SA 600 106,021
Linde AG 150 97,310
Mitsubishi Chemical Corp. 31,000 143,336
Mitsui Toatsu Chemicals, Inc. 15,000 59,350
Monsanto Co. 317,500 10,318,750
Olin Corp. 76,900 6,863,325
Sekisui Chemical Co. Ltd. 41,000 502,033
Shin-Etsu Chemical Ltd. 3,000 57,568
Solvay Et Cie Societe Anonyme 120 73,713
Sumitomo Chemical Co. Ltd. 31,000 148,152
Toray Industries, Inc. 19,000 131,256
-----------------------------
30,696,388
-----------------------------
CHEMICALS--SPECIALTY (0.7%)
Asahi Glass Co. Ltd. 9,000 107,735
Crompton & Knowles Corp. 40,200 673,350
Cytec Industries, Inc.* 49,300 4,215,150
Kyowa Hakko Kogyo Co. 8,000 76,758
SGL Carbon AG+ 15,000 1,765,692
UCAR International, Inc.* 25,700 1,069,763
-----------------------------
7,908,448
-----------------------------
METALS & MINING (0.9%)
Aluminum Co. of America 101,000 5,794,875
Alusuisse Lonza Holding AG 90 74,376
Broken Hill Property 12,900 178,138
Century Aluminum Co.* 48,200 759,150
CRA Ltd. 5,800 89,164
Gibraltar Steel Corp.* 36,600 741,150
Gwalia Consolidated Ltd. 95,800 244,706
Japan Energy Corp. 19,000 70,663
Kaiser Aluminum Corp.* 46,000 506,000
Mitsubishi Materials Corp. 24,000 130,708
Plutonic Resources Ltd. 30,000 153,260
RTZ Corp. 10,548 156,162
Sumitomo Metal Mining Co. 2,000 17,344
United Dominion Industries Ltd. 50,000 1,150,000
Western Mining Corp. Ltd. 40,700 291,092
-----------------------------
10,356,788
-----------------------------
PAPER (0.1%)
Amcor Ltd. 8,900 60,506
Asia Pacific Resources
International Holdings Ltd.
(Class A)* 5,000 37,500
Enso-Gutzeit (Series R) 30,000 233,775
Fletcher Forestry Shares 4,256 5,293
<PAGE>
COMMON STOCKS (Continued):
Grupo Industrial Durango (ADR)* 12,000 $ 121,500
Kokuyo Co. 2,000 55,375
Mayr-Melnhof Karton Aktien*+ 1,500 64,613
New Oji Paper Co. 8,000 69,155
Nippon Paper Industries Co. 29,000 181,523
Svenska Cellulosa (Series B) 3,200 65,958
-----------------------------
895,198
-----------------------------
STEEL (0.3%)
British Steel 69,074 176,519
Hitachi Metals Ltd. 55,000 633,253
Kawasaki Steel 48,000 173,254
Nippon Steel Corp. 49,000 168,356
NKK Corp.* 52,000 157,756
SSAB Svenskt Stal (Class B) 8,000 103,889
Sumitomo Metal Industries 312,000 957,939
Thyssen AG 450 82,415
Usinor Sacilor* 3,500 50,518
-----------------------------
2,503,899
-----------------------------
TOTAL BASIC MATERIALS (4.7%) 52,360,721
-----------------------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.6%)
Daiseki Co. Ltd.* 12,000 331,155
Matsuda Sangyo Co. Ltd.* 7,000 249,463
Powerscreen International 75,000 531,297
Rentokil Group PLC 30,000 190,614
Tomra Systems 120,000 1,220,114
United Waste Systems, Inc.* 20,800 670,800
USA Waste Services, Inc.* 237,500 7,035,938
WMX Technologies, Inc. 240,000 7,860,000
-----------------------------
18,089,381
-----------------------------
PRINTING, PUBLISHING &
BROADCASTING (2.0%)
Applied Graphics Technologies,
Inc.* 43,200 685,800
British Sky Broadcasting Group PLC 19,366 132,374
Cablevision Systems Corp.
(Class A)* 106,500 4,925,625
Carlton Communications PLC 25,000 201,178
Clear Channel Communications,
Inc.* 8,100 667,238
Elsevier N.V. 50,361 764,848
EZ Communications, Inc.* 12,200 289,750
Havas 200 16,368
Infinity Broadcasting Corp. (Class
A)* 21,550 646,500
Liberty Media Group (Class A)* 24,000 636,000
Lodgenet Entertainment Corp.* 50,000 687,500
Mirror Group Newspapers PLC 40,000 127,387
New York Times Co. 105,500 3,441,937
News Corp. Ltd. 17,100 96,901
Nippon Television Network Corp. 5,080 1,578,288
Reed International 20,295 339,560
Reuters Holdings 13,305 161,014
Singapore Press Holdings 3,000 58,894
Star Publications BHD 20,000 62,538
Takara Printing Co.* 2,000 27,048
</TABLE>
B-57
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
TCI Group (Class A)* 200,000 $ 3,625,000
Ver Ned Uitgeversbedr Ver
Bezit N.V. 25,000 388,479
Viacom, Inc.* 77,140 2,998,818
-----------------------------
22,559,045
-----------------------------
PROFESSIONAL SERVICES (0.7%)
Accustaff, Inc.* 15,500 422,375
ADT Ltd.* 35,300 666,288
Apcoa Parking AG 3,000 272,252
Asatsu, Inc. 9,000 390,643
Automated Security Holdings* 51,041 29,338
Dainippon Printing Co. Ltd. 5,000 96,861
Equity Corporation International* 24,500 661,500
Ha-Lo Industries, Inc.* 40,950 1,064,700
Loewen Group, Inc. 32,100 971,025
Reynolds & Reynolds Co. 50,000 2,662,500
Romac International, Inc.* 21,400 545,700
Secom Co. 1,000 66,158
SGS Holdings 25 59,900
Williams Holdings PLC 10,569 55,660
WPP Group PLC 100,000 334,003
-----------------------------
8,298,903
-----------------------------
TRUCKING, SHIPPING (0.7%)
Brambles Industries Ltd. 30,000 416,868
Comfort Group Ltd.* 245,000 243,090
Irish Continental Group 30,000 280,103
Kawasaki Kisen* 55,000 185,955
Mitsui O.S.K. Lines Ltd.* 19,000 65,628
Nippon Express Co. Ltd. 15,000 146,662
Nippon Yusen K.K. 3,000 17,380
Peninsular & Oriental Steam
Navigation Co. 10,466 79,018
Western Bulk Shipping*+ 31,500 145,582
Xtra Corp. 110,200 4,876,350
Yamato Transport 100,000 1,178,782
-----------------------------
7,635,418
-----------------------------
TOTAL BUSINESS SERVICES (5.0%) 56,582,747
-----------------------------
CAPITAL GOODS
AEROSPACE (0.7%)
Boeing Co. 65,600 5,715,400
British Aerospace 1,078 16,362
Coltec Industries, Inc.* 128,000 1,824,000
General Electric Co. PLC 14,019 75,571
General Motors Corp. (Class H) 9,200 553,150
Rolls-Royce 22,528 78,394
-----------------------------
8,262,877
-----------------------------
BUILDING & CONSTRUCTION (0.9%)
ABB AG 480 594,432
American Standard Companies, Inc.* 53,000 1,749,000
Boral Ltd. 48,700 126,310
Bufete Industrial SA (ADR)* 2,700 46,913
Chloride Group 200,000 90,880
CSR Ltd. 16,900 59,639
Cubiertas Y Mzov SA 3,824 249,485
Daiwa House Industry Co. 9,000 139,809
Fujikura Ltd. 50,000 414,858
<PAGE>
COMMON STOCKS (Continued):
Hitachi Plant Engineering &
Construction Co.* 50,000 $ 399,781
Japan Industrial Land Development 13,500 423,128
Kajima Corp. 24,000 247,818
Kanamoto Co. Ltd.--Rights* 200 0
Kaneshita Construction Co. 28,000 358,204
Kumagai Gumi Co. 13,000 52,268
MacMahon Holdings Ltd. 700,000 462,139
Mitsui Home Co. Ltd. 21,000 341,573
Nanno Construction Co. Ltd.* 24,000 278,522
National House Industrial Co. 1,000 15,626
Nawarat Patanakarn Public Co. 80,000 220,577
Nishimatsu Construction Co. 5,000 54,827
Obayashi Corp. 2,000 18,111
Ohmoto Gumi Co. Ltd. 12,000 243,432
Oriental Construction Co. 20,000 334,445
Paul Y.-ITC Construction Holdings 400,000 94,564
Paul Y.-ITC Construction
Holdings--Warrants* 80,000 1,803
Penta Ocean Construction 10,000 67,529
PS Corp. 32,000 614,062
Redland PLC 9,480 59,056
RMC Group PLC 4,518 71,100
Royal Plastics Group Ltd.*+ 10,000 151,987
Sawako Corp.* 4,000 138,895
Schneider SA* 450 23,619
Sekisui House Ltd. 13,000 148,490
Shimizu Corp. 15,000 165,852
Sho Bond Construction 22,000 824,233
Suido Kiko Kaisha 2,000 21,565
Taisei Corp. 20,000 142,185
Toda Construction 32,000 312,880
United Engineers Malaysia BHD* 11,000 76,288
Wesco, Inc. 7,500 210,399
YTL Corp. BHD* 11,000 57,326
-----------------------------
10,103,610
-----------------------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.6%)
Advan Co. 5,000 244,437
Blue Circle Industries 13,338 74,594
Bowater, Inc. 13,121 69,100
BPB Industries PLC 90,000 446,010
Buckeye Cellulose Corp.* 18,000 497,250
Carter Holt Harvey* 28,600 65,443
Chichibu Onoda Cement Co. 11,000 63,225
Cie de St. Gobain 800 107,149
C.I. Holdings BHD 20,000 79,375
Dahl International AB*+ 51,000 735,455
Heidelberger Zement AG 100 68,655
Holderbank Financiere Glaris 80 64,000
Hughes Supply, Inc. 17,700 615,075
Lafarge Canada 3,000 60,978
Lafarge Corp. 4,750 287,627
Louisiana Pacific Corp. 45,000 995,625
Martin Marietta Materials, Inc. 59,200 1,435,600
Nichiha Corp. 16,100 326,605
Sumitomo Forestry Co. 19,000 282,999
</TABLE>
B-58
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Wolseley PLC 10,088 $ 71,306
-----------------------------
6,590,508
-----------------------------
ELECTRICAL EQUIPMENT (1.2%)
Alcatal Alsthom 7,850 685,163
Daikin Industries Ltd. 5,000 54,827
Furukawa Electric Co. 13,000 77,809
General Electric Co. 119,400 10,328,100
Kinden Corp. 5,000 79,499
Omron Corp. 70,000 1,490,382
Siemens AG 4,850 260,193
Sumitomo Electric Industries 10,000 143,464
Vae Eisenbahnsys AG 533 50,301
-----------------------------
13,169,738
-----------------------------
MACHINERY (1.2%)
Amada Co. Ltd. 5,000 53,913
Asahi Diamond Industry Co. Ltd. 33,720 440,623
Cincinnati Milacron, Inc. 80,000 1,920,000
Construcciones Auxiliar Ferro 3,000 114,388
Deere & Co. 44,700 1,788,000
Ebara Corp. 5,000 79,956
Fag Kugelfischer Georg Schaefer 400 59,974
Fanuc Co. 3,600 143,428
GKN PLC 1,044 16,024
IHC Caland N.V. 10,000 492,561
Kalmar Industries AB+ 12,000 251,871
Keppel Corp.* 27,000 225,797
Keyence Corp. 4,700 639,923
Komatsu Ltd. 19,000 187,509
Kubota Corp. 20,000 132,133
Kurita Water Industries 300 7,319
Makino Milling Machine Co. 50,000 507,150
Mitsubishi Heavy Industries Ltd. 160,000 1,393,339
Namura Shipbuilding Co. 39,000 220,953
Nippon Seiko K.K. 4,000 30,301
Nireco* 11,000 211,084
Nitta Corp. 32,000 599,443
Nitto Kohki Co. Ltd. 16,000 731,028
Pentair, Inc. 24,400 732,000
Sime Darby BHD 42,000 116,176
SMC Corp. 8,000 619,911
Smiths Industries 5,559 60,797
Sodick Co.* 75,000 897,793
Thai Engine Manufacturing Public
Co.* 100,000 803,529
Toyoda Automatic Loom Works 1,000 20,012
Van Der Horst 30,000 140,326
Yaskawa Electric Corp. 70,000 342,852
-----------------------------
13,980,113
-----------------------------
TOTAL CAPITAL GOODS (4.6%) 52,106,846
-----------------------------
CONSUMER CYCLICALS
AIRLINES (1.2%)
America West Airlines, Inc. (Class
B)* 32,300 710,600
AMR Corp.* 25,000 2,275,000
British Airways 59,258 509,997
Cathay Pacific Airways 41,000 75,212
Delta Air Lines, Inc. 50,000 4,150,000
<PAGE>
COMMON STOCKS (Continued):
Japan Air Lines Co.* 19,000 $ 154,000
KLM 14,000 448,231
Lufthansa AG 550 77,944
Mesa Airlines, Inc.* 56,000 665,000
Northwest Airlines Corp.
(Class A)* 78,300 3,092,850
Qantas Airways Ltd. 100,000 168,979
Singapore Airlines Ltd. 80,000 844,791
-----------------------------
13,172,604
-----------------------------
APPAREL, TEXTILE (0.6%)
Adidas AG+ 7,000 583,468
Designer Holdings Ltd.* 29,500 785,438
First Sign International
Holdings Ltd.* 1,500,000 319,736
King Co.* 75,000 530,452
Kuraray Co. Ltd. 6,000 67,437
Nautica Enterprises, Inc.* 27,400 787,750
Nine West Group, Inc.* 24,300 1,242,338
Polymer Group, Inc.* 38,600 675,500
Renown, Inc.* 120,000 481,382
Teijin Ltd. 18,000 97,866
Tommy Hilfiger Corp.* 16,000 858,000
Warnaco Group, Inc. (Class A) 25,800 664,350
-----------------------------
7,093,717
-----------------------------
AUTOS & TRUCKS (0.8%)
Autozone, Inc.* 214,400 7,450,400
Daimler-Benz AG* 1,050 563,789
Fiat Spa 40,000 134,102
Honda Motor Corp. 24,000 622,835
Peugeot SA 700 93,755
Toyota Motor Corp. 15,000 375,565
-----------------------------
9,240,446
-----------------------------
AUTO RELATED (0.8%)
Autoliv AB 9,000 274,522
Autoliv AB (ADS)*+ 6,000 178,500
Bridgestone Corp. 10,000 190,981
Goodyear Tire & Rubber Co. 70,585 3,405,726
Lucas Industries 17,320 60,943
Mabuchi Motor Co. 2,000 127,564
Magna International, Inc.
(Class A) 75,000 3,450,000
Michelin (CGDE), (Class B) 450 22,009
Minebea Co. 75,000 631,197
Nippondenso Co. Ltd. 12,000 260,977
Oxford Resources Corp.
(Class A)* 20,400 474,300
-----------------------------
9,076,719
-----------------------------
FOOD SERVICES, LODGING (1.1%)
AAPC Limited 400,000 251,504
Accor SA 550 76,979
Doubletree Corp.* 16,100 571,550
Fujita Kanko, Inc. 3,000 60,310
Host Marriott Corp.* 178,800 2,346,750
Jurys Hotel Group PLC* 59,200 269,559
La Quinta Motor Inns, Inc. 41,600 1,393,600
McDonald's Corp. 141,050 6,594,088
QPQ Corp.* 16,400 32,800
QPQ Corp.--Warrants* 16,400 4,100
</TABLE>
B-59
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Red Lion Hotels, Inc.* 31,000 $ 651,000
Sanyo Pax Co. Ltd. 24,200 504,190
-----------------------------
12,756,430
-----------------------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.3%)
Alpine Electronics 5,000 93,663
Black & Decker Corp. 184,200 7,114,725
Elamex S.A. de C.V.* 76,700 767,000
Electrolux B 1,100 55,395
First Brands Corp. 115,000 3,105,000
Industrie Natuzzi (ADR) 18,100 927,625
Matsushita Electric Industrial Co. 28,000 521,954
Nippon Electric Glass 55,000 939,827
Philips Electronics 6,611 215,150
Sanyo Electric Co. Ltd. 108,000 660,227
Sharp Corp. 15,000 263,170
Tostem Corp. 1,000 29,515
Toto 2,000 30,155
-----------------------------
14,723,406
-----------------------------
LEISURE RELATED (2.2%)
Canal Plus 350 85,659
Cinar Films, Inc. (Class B)* 15,000 326,250
Cyrk, Inc.* 180,000 2,452,500
Disney (Walt) Co. 101,891 6,406,396
Enix Corp.* 15,600 488,948
Granada Group PLC* 10,154 135,974
Harman International Industries,
Inc. 15,000 738,750
Hasbro, Inc. 46,000 1,644,500
Helicopter Line Ltd. 70,000 134,681
Heritage Media Corp. (Class A)* 19,500 777,563
ITT Corp.* 94,300 6,247,375
Namco Ltd. 23,000 762,919
Nelvana Limited*+ 18,000 316,426
Nintendo Co. 5,500 410,106
Rank Organisation PLC 22,484 173,946
Resorts World BHD 24,000 137,583
Sega Enterprises Ltd. 2,000 93,572
SMH AG* 100 69,600
Softkey International, Inc.* 95,500 1,808,531
Thorn EMI 6,185 172,375
Toho Co. 400 70,910
Tokyo Dome Corp. 3,000 60,584
Yamaha Corp. 75,000 1,240,462
-----------------------------
24,755,610
-----------------------------
PHOTO & OPTICAL (0.2%)
Fuji Photo Film Co. 7,000 221,319
Noritsu Koki Co. Ltd.* 11,000 556,860
Oakley, Inc.* 16,500 750,750
-----------------------------
1,528,929
-----------------------------
RETAIL--GENERAL (2.3%)
Ado Electronic
Industrial Co. Ltd. 5,000 152,145
Ahold N.V. 1,789 97,036
Ann Taylor Stores* 18,500 374,625
Boots Co. PLC 18,076 162,589
Carli Gry International*+ 20,000 655,369
<PAGE>
COMMON STOCKS (Continued):
Carrefour 425 $ 238,266
Centros Comerciales Pryca S.A. 7,000 175,020
Coles Myer Ltd. 200,400 727,670
Consolidated Stores Corp.* 18,000 661,500
Daiei, Inc. 10,000 120,620
Dai-Ichi Corp. 10,500 305,113
Doshisha Co. 7,000 236,031
Eiden Sakakiya Co. Ltd. 12,000 167,771
Federated Department Stores, Inc.* 159,800 5,453,170
Fingerhut Companies, Inc. 160,000 2,500,000
Fu Hui Jewellery* 382,000 9,574
Great Universal Stores 19,098 194,034
Harvey Nichols Group PLC*+ 30,900 162,251
Hochtief AG 150 67,077
Homac Corp. 3,000 69,356
Isetan Co. 67,000 1,016,311
Karstadt AG 150 59,777
Lowe's Cos., Inc. 23,800 859,775
Marks & Spencer 33,524 245,034
Marui Co. Ltd. 7,000 155,435
Nissen Corp. Ltd. 5,700 85,941
Paris Miki, Inc. 16,200 754,969
Petco Animal Supplies, Inc.* 23,100 664,125
Pinault Printemps 50 17,505
Promodes 300 86,543
Rinascente 13,000 93,150
Rite Aid Corp. 130,000 3,867,500
Sato Corp. 21,000 516,197
Sriwani Holdings BHD* 546,000 949,946
Swank International Manufacturing 400,000 69,761
Thrifty Payless Holdings, Inc.--B* 162,000 2,794,500
Valuevision International, Inc.
(Class A)* 70,200 487,013
Warehouse Group Ltd. 200,900 358,926
Williams-Sonoma, Inc.* 6,100 144,113
Xebio Co. 6,000 225,339
-----------------------------
25,981,077
-----------------------------
TOTAL CONSUMER CYCLICALS (10.5%) 118,328,938
-----------------------------
CONSUMER NONCYCLICALS
BEVERAGES (0.3%)
Asahi Breweries Ltd. 8,000 93,572
Bass Breweries 9,708 122,008
Carlsberg 'A' 900 52,993
Coca-Cola Amatil Ltd. 7,600 84,402
Fraser & Neave 30,000 310,418
Grand Metropolitan 66,425 440,627
Guinness PLC 144,781 1,052,613
Heineken N.V. 452 101,088
Kirin Brewery Co. 6,000 73,468
Lion Nathan Ltd. 60,000 157,082
Louis Vuitton Moet Hennessy 1,000 237,352
Panamerican Beverages 4,500 201,375
Pernod-Ricard 3,100 198,863
Quilmes Industrial Quins (ADR)* 33,300 341,325
-----------------------------
3,467,186
-----------------------------
</TABLE>
B-60
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
CONTAINERS (0.4%)
Crown Cork & Seal, Inc. 75,000 $ 3,375,000
Hub Group, Inc. (Class A)* 25,400 517,525
Toyo Seikan Kaisha 3,000 104,720
-----------------------------
3,997,245
-----------------------------
DRUGS (3.8%)
Advanced Tissue Sciences, Inc.* 35,300 569,213
Amgen, Inc.* 135,000 7,290,000
Astra AB (A Shares) 10,500 464,558
Biogen, Inc.* 15,000 823,125
China Apollo Holdings Ltd. 400,000 51,675
Cochlear Ltd.+ 162,100 426,798
Daiichi Pharmaceutical Co. 1,000 15,443
Eisai Co. Ltd. 5,000 94,577
Geltex Pharmaceuticals, Inc.* 23,300 436,875
Glaxo-Wellcome PLC 32,082 431,858
Hafslund Nycomed ASA 11,700 73,900
Liposome Co., Inc.* 31,000 581,250
Medimmune, Inc.* 32,800 557,600
Merck & Co., Inc. 103,000 6,656,375
Novo-Nordisk AS (ADR) 3,100 439,131
Nycomed ASA (B Shares)* 11,700 162,220
Pfizer, Inc. 128,200 9,150,275
Revco D.S., Inc.* 111,000 2,650,125
Roche Holdings AG Genusscheine 144 1,099,583
Sandoz AG 630 721,224
Sankyo Co. 20,000 519,030
Santen Pharmaceutical Co. 25,000 582,537
Schering AG 1,250 90,710
Taisho Pharmaceutical Co. 21,000 454,791
Takeda Chemical Industries 27,000 478,640
Warner-Lambert Co. 110,000 6,050,000
Yamanouchi Pharmaceutical 45,000 978,663
Zeneca Group PLC 30,000 663,189
-----------------------------
42,513,365
-----------------------------
FOODS (0.8%)
Ajinomoto Co., Inc. 12,000 143,647
BSN Gervais Danone 450 68,144
Cadbury Schweppes PLC 18,792 148,594
Jusco Co. 6,000 196,829
Nabisco Holdings Corp.
(Class A) 99,800 3,530,425
Nestle AG 230 262,936
Nippon Meat Packers, Inc. 4,000 57,020
Nissin Food Products Co. 3,000 77,032
NV (Verenigde Bed) Nutricia+ 2,600 275,189
Shriram Industrial
Enterprises Ltd.+ 24,000 96,000
Shriram Industrial
Enterprises Ltd.--Warrants* 8,000 0
Tingyi Holdings Corp.* 700,000 192,165
Viscofan Envoltura 9,000 142,399
Warabeya Nichiyo Co. Ltd.* 18,000 294,421
Whitman Corp. 142,700 3,442,638
Yamakazi Baking Co. 4,000 74,199
-----------------------------
9,001,638
-----------------------------
HOSPITAL SUPPLIES & SERVICES (2.9%)
Baxter International, Inc. 80,000 3,780,000
<PAGE>
COMMON STOCKS (Continued):
Columbia/HCA Healthcare Corp. 71,000 $ 3,789,625
Community Health System, Inc.* 10,900 564,075
Compdent Corp.* 14,500 674,250
Coventry Corp.* 77,500 1,220,625
Johnson and Johnson 160,000 7,920,000
Ornda Healthcorp* 59,200 1,420,800
Respironics, Inc.* 26,700 493,950
Rotech Medical Corp.* 34,800 678,600
Scandinavian Mobility
International, Inc.*+ 27,600 471,753
Smithkline Beecham PLC 10 107
Steris Corp.* 108,600 3,475,200
Tamro Group 20,000 120,017
United Healthcare Corp. 108,000 5,454,000
Value Health, Inc.* 97,000 2,291,625
-----------------------------
32,354,627
-----------------------------
RETAIL--FOOD (0.3%)
Casino Guichard-Perrachon 125 5,164
Daimon Co. Ltd. 14,000 703,614
Ito Yokado Co. Ltd. 6,000 362,407
McBride PLC 60,000 122,105
Santa Isabel S.A. (ADR) 28,800 799,200
Seven-Eleven Japan Ltd. 11,000 702,609
Tesco 39,233 179,188
-----------------------------
2,874,287
-----------------------------
SOAPS & TOILETRIES (1.1%)
BIC 600 85,260
Colgate Palmolive Co. 80,730 6,841,868
Gillette Corp. 85,300 5,320,588
KAO Corp. 3,000 40,572
L'Oreal 550 182,719
Shiseido Co. 1,000 12,793
Unilever 9,440 187,713
Unilever N.V. CVA 838 121,373
-----------------------------
12,792,886
-----------------------------
TOBACCO (2.4%)
BAT Industries 31,963 248,769
Loews Corp. 70,000 5,521,250
Philip Morris Cos., Inc. 200,600 20,862,400
RJ Reynolds BHD 100,000 294,648
Rothmans of Pall Mall BHD* 6,000 63,139
Swedish Match Co. AB* 300,000 933,192
-----------------------------
27,923,398
-----------------------------
TOTAL CONSUMER NONCYCLICALS (12.0%) 134,924,632
-----------------------------
CREDIT SENSITIVE
BANKS (1.8%)
ABN Amro Holdings 2,841 152,598
Akita Bank 5,000 36,369
Asahi Bank Ltd. 19,000 220,496
Banca Commerciale Italiana Spa 35,000 70,380
Banco Bilbao Vizcaya SA 1,347 54,623
Banco Latinoamericano de
Exportaciones, S.A. 9,500 534,375
Banco Osorno Y La Union (ADR) 16,000 216,000
Banco Popular 1,000 178,458
Banco Santander SA 2,691 125,734
</TABLE>
B-61
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Bancomer B Local* 50,000 $ 21,753
Bank Austria AG 920 73,929
Bank of Tokyo--Mitsubishi Bank 100 2,321
Banque Nationale de Paris 2,250 79,035
Barclays Bank 47,551 571,019
Chase Manhattan Corp. 48,000 3,390,000
Cie Fin Paribas Series A 1,400 82,733
CS Holdings 2,650 252,280
Dai-Ichi Kangyo Bank 10,000 186,412
Den Danske Bank 1,300 87,195
Deutsche Bank AG 6,050 286,854
Dresdner Bank 2,900 72,850
First Union Corp. 150,000 9,131,250
Fokus Bank* 8,000 43,628
Fuji Bank Ltd. 28,000 603,829
Generale de Banque 40 13,899
Grupo Financiero Bantorte (Class
B)* 22,500 21,477
Hang Seng Bank 22,000 221,684
Hong Leong Bank BHD* 20,000 56,123
HSBC Holdings PLC 25,334 384,000
International Bank of Asia 270,000 174,402
Istituto Banco San Paolo de Torino 15,000 96,953
Istituto Mobilare Italiano 2,500 20,892
Lloyds TSB Group PLC 43,223 211,513
Malayan Banking Berhad 13,000 125,075
Mediobanca Spa 10,000 63,558
National Australia Bank Ltd. 12,500 115,436
Overseas Chinese Bank 51,000 596,386
Overseas Chinese Bank--Rights* 6,000 48,051
Overseas Union Bank Ltd. 22,000 151,240
Sakura Bank Ltd. 41,000 457,075
Schweiz Bankgesellschaft 300 294,000
Skandinaviska Enskilda Banken
(Series A) 8,000 64,025
Societe Generale 1,000 110,026
Sparbanken Sverige AB
(A Shares) 16,000 207,779
Sumitomo Bank 30,000 581,167
Svenska Handelsbanken
(Series A) 3,100 64,833
Toho Bank 9,000 66,204
United Overseas Bank 2,000 19,135
-----------------------------
20,639,054
-----------------------------
FINANCIAL SERVICES (2.0%)
CMIC Finance & Securities Co. Ltd. 200,000 586,891
Credit Local de France 3,500 285,076
Credit Saison Co. 17,500 423,768
Daiwa Securities Co. Ltd. 12,000 154,612
Dean Witter Discover & Co. 58,900 3,372,025
General Accident 8,971 91,005
Groupe Bruxelles Lambert SA 450 56,363
Hong Leong Finance Ltd. 50,000 138,200
ING Groep N.V. 6,595 196,840
Invesco 60,000 215,315
JCG Holdings 60,000 48,832
<PAGE>
COMMON STOCKS (Continued):
MBNA Corp. 260,000 $ 7,410,000
Merrill Lynch & Co., Inc. 82,100 5,346,763
Nichiei Co. Ltd. 18,000 1,200,713
Nomura Securities Co. 15,000 293,325
Promise Co. Ltd. 8,700 429,296
RAC Financial Group, Inc.* 24,000 678,000
Sanyo Shinpan Finance Co. Ltd. 9,500 608,535
Schroders 3,875 81,568
Union Acceptance Corp.
(Class A)* 47,800 740,900
Yamaichi Securities 65,000 446,658
-----------------------------
22,804,685
-----------------------------
INSURANCE (3.4%)
Aegon N.V. 15,000 691,345
Aetna Life & Casualty Co. 23,000 1,644,500
Allianz AG Holding 250 435,011
American International Group, Inc. 37,700 3,718,162
AMEV N.V. 17,000 487,460
Assicurazioni Generali Spa 10,500 242,333
Assurances Generales de France* 14,100 382,085
Commercial Union PLC 2,150 19,372
Corporacion Mapfre Cia
Inter SA 10,000 510,995
Fortis AG* 150 19,698
General Re Corp. 23,200 3,532,200
Istituto Naz Delle Assicurazioni* 12,500 18,648
Koa Fire & Marine 20,000 129,940
Legal & General Group PLC 9,236 95,989
Life Re Corp. 10,000 308,750
MGIC Investment Corp. 80,900 4,540,513
Mitsui Marine & Fire
Insurance Co. 13,000 103,468
NAC Re Corp. 16,500 552,750
Pacific & Orient BHD 150,000 420,926
PennCorp Financial Group, Inc. 20,500 650,875
PMI Group, Inc. 40,000 1,700,000
Prudential Corp. 10,858 68,484
Riscorp, Inc. (Class A)* 34,500 629,625
Schweiz Ruckversicherungs 240 246,720
Skanska AB (Series B) 1,800 63,738
Sumitomo Marine & Fire Insurance
Co. 2,000 17,453
TIG Holdings, Inc. 166,000 4,814,000
Tokio Marine & Fire
Insurance Co. 13,000 173,436
Transatlantic Holdings, Inc. 25,000 1,753,125
Travelers Group, Inc. 198,000 9,033,750
Twentieth Century Industries* 28,100 467,163
-----------------------------
37,472,514
-----------------------------
MORTGAGE RELATED (0.7%)
Federal National Mortgage
Association 247,500 8,291,250
-----------------------------
REAL ESTATE (0.4%)
British Land Co. 8,416 55,304
Chubu Sekiwa Real Estate 1,000 16,174
City Developments Ltd.* 123,000 958,894
Daibiru Corp. 28,000 373,555
DBS Land 17,000 58,313
</TABLE>
B-62
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
Interstate Hotels Company* 13,300 $ 295,925
JP Realty, Inc. 22,100 472,388
Land Securities PLC 9,978 96,570
Lend Lease Corp. Ltd. 4,100 62,837
Macerich Co. 20,900 438,900
MEPC PLC 8,200 51,719
Mitsubishi Estate Co. 44,000 607,118
Mitsui Fudosan 13,000 175,812
Summit Properties, Inc. 27,100 531,838
Wharf Holdings 17,000 60,834
-----------------------------
4,256,181
-----------------------------
UTILITY--ELECTRIC (0.4%)
Edison Spa 15,000 90,587
Electrabel 490 104,742
Endesa 1,839 114,807
Enersis (ADR) 6,000 186,000
Hidroelectrica del Cantabrico 15,000 522,715
Iberdrola II* 30,000 308,238
Iberdrola S.A. 46,241 475,108
Kansai Electric Power Co., Inc. 9,800 224,773
National Grid Group PLC* 35,027 92,777
National Power PLC 50,000 403,910
Powergen PLC (ADR) 1,250 37,188
RWE AG 2,350 91,487
Stora Kopparbergs (Series A) 4,200 55,493
Tenaga Nasional BHD 28,000 117,859
Tohoku Electric Power Co., Inc. 7,300 163,430
Tokyo Electric Power Co., Inc. 10,200 259,113
Tractebel Investment International
Capital 220 90,153
United Utilities PLC 8,965 75,485
Veba AG 13,950 742,153
Viag AG 350 139,480
-----------------------------
4,295,498
-----------------------------
UTILITY--GAS (0.0%)
General de Aguas d'Barcelona* 1,680 62,482
Thames Water 7,439 65,525
-----------------------------
128,007
-----------------------------
UTILITY--TELEPHONE (0.8%)
AT&T Corp. 92,000 5,704,000
British Telecommunications 44,350 238,386
Empresas Telex-Chile S.A. (ADR) 40,000 325,000
Hellenic Telecommunication
Organization S.A.* 20,000 331,717
Kon. PTT Nederland+ 11,174 423,275
PT Indonesian Satellite (ADR) 6,000 201,000
Tele Danmark AS (B Shares) 7,300 365,816
Telecom Corp. of New Zealand 4,500 18,924
Telecom Italia Spa 12,500 26,891
Telefonica de Espana SA 20,607 379,985
Telekom Malaysia BHD 21,000 186,891
Telephone & Data Systems, Inc. 22,100 994,500
-----------------------------
9,196,385
-----------------------------
TOTAL CREDIT SENSITIVE (9.5%) 107,083,574
-----------------------------
<PAGE>
COMMON STOCKS (Continued):
ENERGY
COAL & GAS PIPELINES (0.0%)
British Gas 48,528 $ 135,699
-----------------------------
OIL--DOMESTIC (0.8%)
Diamond Shamrock, Inc. 19,100 551,513
Enron Oil and Gas Co. 44,200 1,232,075
KCS Energy, Inc. 6,100 175,375
Louis Dreyfus Natural Gas Corp.* 134,000 2,010,000
Louisiana Land & Exploration Corp. 85,000 4,898,125
XCL Corp.* 200,000 62,500
-----------------------------
8,929,588
-----------------------------
OIL--INTERNATIONAL (2.3%)
British Petroleum Co. PLC 37,105 325,393
Canadian Occidental 6,000 100,500
Cosmo Oil Co. Ltd. 11,000 68,150
Elf Aquitaine 3,650 268,628
ENI Spa 91,000 454,205
Exxon Corp. 154,800 13,448,250
Mitsubishi Oil Co. 8,000 68,351
Mobil Corp. 79,100 8,869,086
Nippon Oil Co. Ltd. 22,000 149,367
Norsk Hydro AS 2,100 102,878
Oil Search Ltd. 300,000 299,447
Omv AG 5,000 506,910
Petrofina SA 60 18,826
Repsol SA 12,748 443,740
Royal Dutch Petroleum Co. 4,399 679,956
Total Campagnie Francaise 900 66,797
-----------------------------
25,870,484
-----------------------------
OIL--SUPPLIES & CONSTRUCTION (0.9%)
BJ Services Co.* 104,500 3,670,563
Coflexip (ADR)* 11,000 191,125
Global Marine, Inc.* 49,400 685,425
Rowan Cos., Inc.* 49,800 734,550
Schlumberger, Ltd. 42,500 3,580,625
Sonat Offshore Drilling, Inc. 14,100 712,050
-----------------------------
9,574,338
-----------------------------
RAILROADS (1.1%)
Burlington Northern Santa Fe 46,900 3,793,038
Canadian Pacific Ltd. 81,000 1,782,000
Genesee & Wyoming, Inc.
(Class A)* 22,000 451,000
Hankyu Corp.* 40,000 234,660
Kinki Nippon Railroad Co. 21,300 153,568
Odakyu Electric Railway Co. 4,000 26,975
Railtrack Group PLC Sponsored
(ADR)*+ 2,500 85,000
Tobu Railway Co. Ltd. 3,000 19,710
Tokyu Corp. 20,000 152,602
Union Pacific Corp. 82,000 5,729,750
-----------------------------
12,428,303
-----------------------------
TOTAL ENERGY (5.1%) 56,938,412
-----------------------------
</TABLE>
B-63
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (4.5%)
Altera Corp.* 85,000 $ 3,230,000
Austria Mikro Systeme
International+ 1,430 133,619
Bay Networks, Inc.* 97,200 2,502,900
BMC Industries, Inc.--Minn 43,400 1,247,750
Cable & Wireless 24,677 163,310
Cisco Systems, Inc.* 154,000 8,720,250
Dassault Systemes (ADR)* 6,800 156,400
EMC Corp.* 50,000 931,250
Exabyte Corp.* 25,800 337,013
GP Batteries International 143,000 420,420
GP Batteries
International--Rights* 5,750 2,875
Hirose Electric 12,000 742,358
Hitachi Ltd. 29,000 270,297
Hoya Corp. 27,000 873,395
Hyperion Software Corp.* 40,900 506,138
Intel Corp. 50,000 3,671,875
Intergraph Corp.* 100,000 1,212,500
Lam Research Corp.* 25,400 660,400
Motorola, Inc. 64,000 4,024,000
Murata Manufacturing Co. Ltd. 2,000 75,844
NEC Corp. 29,000 315,347
Nikon Corp. 16,000 184,219
Pace Micro Technology PLC* 380,000 1,121,627
Rohm Co. Ltd. 9,000 595,422
Seagate Technology, Inc.* 55,000 2,475,000
SGS-Thomson Microelectronics N.V.* 8,620 303,294
Shinmei Electric Co. 1,000 26,043
Sony Corp. 5,000 329,419
TDK Corp. 4,000 239,046
Teradyne, Inc.* 36,500 629,625
Tokyo Electron 32,000 932,791
Tyco International, Ltd. 120,000 4,890,000
VLSI Technology, Inc.* 27,700 384,338
Yokogawa Electric Corp. 114,000 1,145,885
3Com Corp.* 155,000 7,091,250
-----------------------------
50,545,900
-----------------------------
OFFICE EQUIPMENT (2.5%)
Canon, Inc. 69,000 1,437,566
Ceridian Corp.* 140,900 7,115,450
Compaq Computer Corp.* 300 14,775
CompUSA, Inc.* 146,200 4,989,075
Digital Equipment Corp.* 30,000 1,350,000
Fujitsu Ltd. 4,000 36,551
Hewlett-Packard Co. 37,000 3,686,125
Ricoh Elemex Corp. 3,000 46,603
Sterling Software, Inc.* 75,200 5,790,400
Sun Microsystems, Inc.* 60,000 3,532,500
-----------------------------
27,999,045
-----------------------------
OFFICE EQUIPMENT SERVICES (2.7%)
Accugraph Corp. (Class A)* 30,000 54,935
Comverse Technology, Inc.* 36,700 1,119,350
Electronic Data Systems Corp.* 86,500 4,649,375
First Data Corp. 70,300 5,597,638
I-Net Corp. 1,200 22,698
Informix Corp.* 310,000 6,975,000
<PAGE>
COMMON STOCKS (Continued):
Istar Internet, Inc.*+ 38,000 $ 168,394
Meitec Corp.* 40,000 910,129
Merkantildata A/S 9,000 112,306
Misys PLC 25,000 302,156
NTT Data Communications Systems
Corp.* 10 299,721
Oracle Corp.* 214,550 8,461,316
SAP AG 1,250 184,296
Saville Systems Ireland (ADR)* 32,500 897,813
-----------------------------
29,755,127
-----------------------------
TELECOMMUNICATIONS (3.4%)
AirTouch Communications, Inc.* 52,000 1,469,000
Architel Systems Corp.*+ 30,300 205,292
BCE Mobile Communications, Inc.* 4,000 129,940
Bell Cablemedia PLC (ADR)* 5,000 83,750
Brightpoint, Inc.* 26,300 565,450
Brooks Fiber Properties, Inc.* 15,600 514,800
Cellular Communications Puerto
Rico, Inc.* 3,600 117,000
Comnet Cellular, Inc.* 21,600 648,000
Cox Communications, Inc.
(Class A)* 31,700 685,513
DDI Corp. 123 1,074,500
Digi International, Inc.* 24,200 647,350
DSC Communications Corp.* 137,000 4,127,125
Ericsson (L.M.) Telephone Co.
(Series B) 8,400 181,384
Filtronic Comtek PLC 170,000 805,490
Hong Kong Telecommunications 103,600 186,034
Intelcom Group, Inc.* 36,600 915,000
Korea Mobile Telecommunications
(ADR)* 124,000 2,123,500
Mannesmann AG 1,100 379,048
MCI Communications Corp. 50,000 1,281,250
McLeod, Inc. (Class A)* 24,200 580,800
MFS Communications Co., Inc.* 435 16,367
Millicom International Cellular
S.A.* 13,300 633,413
Mobilemedia Corp.* 70,000 848,750
NetCom Systems AB (B shares)* 44,000 498,306
Nokia Corp. (ADR) 185,000 6,845,000
Optical Data Systems, Inc.* 32,200 708,400
Rogers Cantel Mobile
Communications, Inc.
(Class B)* 6,000 141,732
Scientific Atlanta, Inc. 279,500 4,332,250
Tadiran Telecommunications Ltd.* 66,600 1,065,600
Telecom Italia Mobile Spa 100,000 223,611
Teleport Communications
Group, Inc. (A shares)* 75,200 1,438,200
Tokyo Broadcasting System 50,000 886,371
Total Access Communications+ 70,000 595,000
Vanguard Cellular Systems, Inc.
(Class A)* 100,000 2,175,000
Vodafone Group 215,846 803,084
Xircom* 46,700 688,825
-----------------------------
38,620,135
-----------------------------
TOTAL TECHNOLOGY (13.1%) 146,920,207
-----------------------------
</TABLE>
B-64
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ------------ -----------------------------
<S> <C> <C>
COMMON STOCKS (Continued):
DIVERSIFIED
MISCELLANEOUS (1.1%)
Allied Signal, Inc. 126,500 $ 7,226,313
Austral Enterprises BHD 17,333 35,090
Austral Enterprises BHD--Rights* 6,666 0
BTR PLC 41,105 161,877
Cie Generale des Eaux 700 78,243
Crean (James) PLC--Units 40,000 159,767
Hanson PLC 113,708 318,845
Hutchison Whampoa 16,000 100,662
Indonesia Fund, Inc.* 4,000 44,500
International UNP Holdings* 143,000 51,324
International UNP
Holdings--Warrants* 125,000 2,884
Lyonnais des Eaux Dumez 1,000 95,563
Mitsubishi Corp. 61,000 802,668
Mitsui & Co. 23,000 208,699
Montedison Spa* 100,000 58,172
Pilkington PLC 17,397 48,917
Sumitomo Corp. 5,000 44,501
Taiwan Fund 5,000 120,000
Tomkins PLC 70,000 263,707
U.S. Industries, Inc.* 65,600 1,582,600
-----------------------------
TOTAL DIVERSIFIED (1.1%) 11,404,332
-----------------------------
TOTAL COMMON STOCKS (65.6%)
(Cost $700,948,779) 736,650,409
-----------------------------
PREFERRED STOCKS:
CONSUMER CYCLICALS
AIRLINES (0.1%)
Continental Airlines Finance Trust
8.5% Conv.+ 19,200 1,401,600
-----------------------------
LEISURE RELATED (0.1%)
Station Casinos, Inc.
7.0% Conv. 16,700 960,250
-----------------------------
RETAIL--GENERAL (0.1%)
Fielmann AG 4,200 201,624
K-Mart Financing I
7.75% Conv.* 7,900 428,575
-----------------------------
630,199
-----------------------------
TOTAL CONSUMER CYCLICALS (0.3%) 2,992,049
-----------------------------
CONSUMER NONCYCLICALS (0.1%)
HOSPITAL SUPPLIES & SERVICES
FHP International Corp.
5.0% Conv. Series A 29,200 744,600
-----------------------------
CREDIT SENSITIVE
INSURANCE (0.1%)
Travelers Group, Inc.
5.5% Conv. Series B 10,800 993,600
-----------------------------
UTILITY--TELEPHONE (0.2%)
LCI International, Inc.
5.0% Conv. 31,000 2,557,500
-----------------------------
TOTAL CREDIT SENSITIVE (0.3%) 3,551,100
-----------------------------
<PAGE>
PREFERRED STOCKS (Continued):
TECHNOLOGY
TELECOMMUNICATIONS (0.1%)
MFS Communications Co., Inc.
8.0% Conv.* 21,700 $ 1,377,950
Nokia Oy Cum 14,735 543,896
-----------------------------
TOTAL TECHNOLOGY (0.1%) 1,921,846
-----------------------------
TOTAL PREFERRED STOCKS (0.8%)
(Cost $7,696,642) 9,209,595
-----------------------------
PRINCIPAL
AMOUNT
------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
METALS & MINING (0.5%)
Ryerson Tull, Inc.
8.5%, 07/15/01 $5,000,000 5,002,500
-----------------------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
United Waste Systems, Inc.
4.5% Conv., 06/01/01+ 710,000 805,850
-----------------------------
PRINTING, PUBLISHING &
BROADCASTING (0.8%)
Time Warner Entertainment Co.
8.375%, 03/15/23 9,390,000 9,142,292
-----------------------------
PROFESSIONAL SERVICES (0.3%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 515,000 1,087,294
First Financial Management Corp.
5.0% Conv., 12/15/99 1,200,000 2,248,500
-----------------------------
3,335,794
-----------------------------
TOTAL BUSINESS SERVICES (1.2%) 13,283,936
-----------------------------
CAPITAL GOODS
MACHINERY (0.0%)
Titan Wheel International, Inc.
4.75% Conv., 12/01/00 235,000 301,681
-----------------------------
TOTAL CAPITAL GOODS (0.0%) 301,681
-----------------------------
CONSUMER CYCLICALS
APPAREL, TEXTILE (0.1%)
Nine West Group, Inc.
5.5% Conv., 07/15/03 635,000 641,350
-----------------------------
AUTO RELATED (1.2%)
Auburn Hills Trust
12.0% Deb., 05/01/20 6,230,000 8,998,612
Ford Motor Credit Co.
6.125%, 01/09/06 5,000,000 4,570,500
-----------------------------
13,569,112
-----------------------------
FOOD SERVICES, LODGING (0.2%)
HFS, Inc.
4.5% Conv., 10/01/99 650,000 2,522,000
-----------------------------
RETAIL--GENERAL (0.9%)
Federated Department Stores, Inc.:
8.125%, 10/15/02 4,000,000 3,970,000
8.5%, 06/15/03 2,000,000 2,005,000
5.0% Conv., 10/01/03 780,000 893,100
</TABLE>
B-65
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------- ---------------- -------------------------
<S> <C> <C>
LONG TERM DEBT SECURITIES (CONTINUED):
Lowe's Cos., Inc.
3.0% Conv., 07/22/03 $1,070,000 $ 1,476,600
U.S. Office Products Co.
5.5% Conv., 02/01/01 965,000 1,478,863
Williams-Sonoma, Inc.
5.25% Conv., 04/15/03+ 715,000 768,625
--------------------------
10,592,188
--------------------------
TOTAL CONSUMER CYCLICALS (2.4%) 27,324,650
--------------------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.4%)
American Medical Response
5.25% Conv., 02/01/01+ 780,000 852,150
Healthsouth Corp.
5.0% Conv., 04/01/01 790,000 1,535,563
Rotech Medical Corp.
5.25% Conv. Sub. Note,
06/01/03+ 1,010,000 964,550
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+ 755,000 773,875
--------------------------
TOTAL CONSUMER NONCYCLICALS (0.4%) 4,126,138
--------------------------
CREDIT SENSITIVE
BANKS (0.9%)
Citicorp
6.375%, 01/15/06 5,000,000 4,654,350
St. George Bank Ltd.
7.15%, 10/15/05 5,800,000 5,609,528
--------------------------
10,263,878
--------------------------
FINANCIAL SERVICES (0.2%)
Aames Financial Corp.
5.5% Conv., 03/15/06+ 590,000 817,150
Safeguard Scientifics
6.0% Conv., 02/01/06+ 885,000 1,201,388
--------------------------
2,018,538
--------------------------
FOREIGN GOVERNMENT (0.5%)
Republic of Poland
3.75% PDI, 10/27/14+ (a) 8,000,000 6,140,000
--------------------------
INSURANCE (0.4%)
John Hancock Mutual Life
Insurance Co.
7.375%, 02/15/24+ 5,000,000 4,638,650
Corporacion Mapfre
8.5% Conv., 02/27/99 Peseta4,700,000 36,723
--------------------------
4,675,373
--------------------------
MORTGAGE RELATED (3.5%)
Federal National Mortgage
Association:
6.0%, 04/01/11 $ 12,716,003 12,020,602
7.5%, 12/15/25 6,880,898 6,779,783
7.0%, 05/01/26 20,861,219 20,072,247
--------------------------
38,872,632
--------------------------
UTILITY--TELEPHONE (0.2%)
Worldcom, Inc.
5.0% Conv., 08/15/03 1,525,000 2,226,500
--------------------------
<PAGE>
LONG-TERM DEBT SECURITIES (Continued):
U.S. GOVERNMENT (11.8%)
U.S. Treasury:
7.25% Note, 02/15/98 $ 35,450,000 $ 36,081,470
5.875% Note, 08/15/98 27,000,000 26,839,674
7.75% Note, 12/31/99 11,780,000 12,276,963
6.75% Note, 04/30/00 5,150,000 5,204,719
5.625 Note, 11/30/00 700,000 677,469
5.75% Note, 08/15/03 27,000,000 25,692,173
6.5% Note, 08/15/05 14,165,000 13,952,525
7.625% Bond, 02/15/25 11,255,000 12,134,297
--------------------------
132,859,290
--------------------------
TOTAL CREDIT SENSITIVE (17.5%) 197,056,211
--------------------------
ENERGY (0.1%)
OIL--SUPPLIES & CONSTRUCTION
Seacor Holdings
6.0% Conv., 07/01/03+ 590,000 1,030,288
--------------------------
TECHNOLOGY
ELECTRONICS (1.0%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ 1,200,000 1,197,000
Applied Magnetics Corp.
7.0% Conv., 03/15/06+ 1,310,000 1,156,075
Broadband Technologies
5.0% Conv., 05/15/01+ 1,000,000 991,250
C-Cube Microsystems, Inc.
5.875% Conv., 11/01/05 435,000 532,875
Checkpoint Systems, Inc.
5.25% Conv., 11/01/05+ 700,000 1,365,000
Conner Peripherals, Inc.
6.5% Conv., 03/01/02 850,000 890,375
EMC Corp.
4.25% Conv., 01/01/01 395,000 424,131
LSI Logic Corp.
5.5% Conv., 03/15/01+ 350,000 753,375
SCI Systems, Inc.
5.0% Conv., 05/01/06+ 1,215,000 1,269,675
Sanmina Corporation
5.5% Conv., 08/15/02+ 1,175,000 1,336,563
3Com Corp.
10.25% Conv., 11/01/01+ 865,000 1,351,563
--------------------------
11,267,882
--------------------------
OFFICE EQUIPMENT SERVICES (0.1%)
Comverse Technology, Inc.
5.25% Conv. Euro, 12/01/03 660,000 1,055,175
--------------------------
TELECOMMUNICATIONS (0.2%)
BBN Corp.
6.0% Conv., 04/01/12 1,235,000 1,145,463
Intelcom Group, Inc.
7.0% Conv. PIK Bond, 10/30/98 250,000 347,188
7.0% Conv. Interest Notes,
10/30/98 595,000 826,306
--------------------------
2,318,957
--------------------------
TOTAL TECHNOLOGY (1.3%) 14,642,014
--------------------------
</TABLE>
B-66
<PAGE>
THE HUDSON RIVER TRUST
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
PRINCIPAL AMOUNT (NOTE 1)
- -------------------------------- ---------------- --------------------------
<S> <C> <C>
LONG TERM DEBT SECURITIES (CONTINUED):
DIVERSIFIED
MISCELLANEOUS (0.2%)
Thermo Electron Corp.:
5.0% Conv. Euro, 04/15/01 $ 845,000 $ 1,700,562
4.25% Conv., 01/03/03+ 550,000 676,500
Brierley Investment Ltd.
9.0% Conv. Sub. Note, 06/30/98 14,000 12,218
--------------------------
TOTAL DIVERSIFIED (0.2%) 2,389,280
--------------------------
TOTAL LONG-TERM DEBT SECURITIES (23.6%)
(Amortized Cost $262,831,055) 265,156,698
--------------------------
SHORT-TERM DEBT SECURITIES:
CERTIFICATES OF DEPOSIT
Barnett Bank
5.39%, due 07/08/96 16,000,000 16,000,000
Sumitomo Bank--N.Y.
5.44%, due 07/03/96 9,000,000 8,999,969
--------------------------
TOTAL CERTIFICATES OF DEPOSIT (2.2%) 24,999,969
--------------------------
COMMERCIAL PAPER
Citicorp
5.6%, due 07/01/96 3,800,000 3,798,818
Copley Financing Corp.
5.42%, due 07/31/96 6,600,000 6,568,203
Province of Quebec
5.3%, due 07/12/96 5,000,000 4,990,431
Sheffield Receivables Corp.
5.55%, due 07/01/96 600,000 599,815
Triple A Funding
5.38%, due 07/17/96 7,717,000 7,696,241
Toronto Dominion Bank
5.29%, due 07/15/96 12,000,000 11,971,787
SHORT-TERM DEBT SECURITIES (Continued):
Three River Funding
5.43%, due 07/15/96 $ 9,000,000 $ 8,978,280
UBS Finance Delaware, Inc.:
5.58%, due 07/01/96 5,300,000 5,298,356
5.39%, due 07/02/96 6,000,000 5,997,305
--------------------------
TOTAL COMMERCIAL PAPER (5.0%) 55,899,236
--------------------------
U.S. GOVERNMENT (0.1%)
Federal Home Loan Bank
5.1%, due 07/01/96 1,000,000 999,716
--------------------------
TIME DEPOSITS
Mitsubishi Bank Ltd--N.Y.
5.625%, due 07/01/96 6,000,000 6,000,000
Sanwa Bank--N.Y.
5.625%, due 07/01/96 2,200,000 2,200,000
--------------------------
TOTAL TIME DEPOSITS (0.7%) 8,200,000
--------------------------
TOTAL SHORT-TERM DEBT SECURITIES (8.0%)
(Amortized Cost $90,098,921) 90,098,921
--------------------------
TOTAL INVESTMENTS (98.0%)
(Cost/Amortized Cost $1,061,575,397) 1,101,115,623
CASH AND RECEIVABLES
LESS LIABILITIES (2.0%) 22,450,669
--------------------------
NET ASSETS (100.0%) $1,123,566,292
==========================
</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) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1996.
See Notes to Financial Statements.
B-67
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (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. The investment objectives of each Portfolio are as follows:
Money Market Portfolio --High level of current income, preserve its assets
and maintain liquidity. The Portfolio pursues this objective by investing in
primarily high quality U.S. dollar denominated money market instruments.
Intermediate Government Securities Portfolio --High current income
consistent with relative stability of principal through investment primarily
in debt securities issued or guaranteed as to principal and interest by the
U.S. Government or any of its agencies or instrumentalities.
Quality Bond Porfolio --High current income consistent with preservation
of capital by investing primarily in investment grade fixed income
securities. The Portfolio reserves the right to invest in convertible debt
securities, preferred stocks and dividend-paying common stocks.
High Yield Portfolio --High return by maximizing current income and, to
the extent consistent with that objective, capital appreciation. The
Portfolio pursues this objective by investing primarily in 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."
Growth and Income Portfolio --High total return through a combination of
current income and capital appreciation by investing primarily
income-producing common stocks and securities convertible into common stocks.
Equity Index Portfolio --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.
Common Stock Portfolio --Long-term growth of its capital and increase
income. The Portfolio pursues this objective by investing primarily in common
stock and other equity-type instruments.
Global Portfolio --Long-term growth of capital. The Portfolio pursues this
objective by investing primarily in equity securities of non-United States
companies as well as United States issuers.
International Portfolio --Long-term growth of capital by investing
primarily in a diversified portfolio of equity securities selected
principally to permit participation in non-United States companies with
prospects for growth.
Aggressive Stock Portfolio --Long-term growth of capital. The Portfolio
pursues this objective by investing primarily in common stocks and other
equity-type securities issued by quality small and intermediate sized
companies with strong growth prospects.
Conservative Investors Portfolio --High total return without, in the
investment adviser's opinion, undue risk to principal. The Portfolio pursues
this objective by investing in a diversified mix of publicly traded equity
and debt securities.
Balanced Portfolio --High return through both appreciation of capital and
current income. The Portfolio pursues this objective by investing in a
diversified portfolio of publicly traded equity and debt securities and
short-term money market instruments.
B-68
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
Growth Investors Portfolio--Highest total return consistent with the
investment adviser's determination of reasonable risk. The Portfolio pursues
this objective by investing in a diversified mix of publicly traded equity
and fixed income securities, including at times common stocks issued by
intermediate and small-sized companies and at times fixed income securities
that are medium and lower equity debt securities known as "junk bonds."
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 14, 1994, the Board of Trustees
approved the establishment of the International Portfolio at an initial share
value of $10. The Portfolio commenced operations on April 3, 1995.
On July 8, 1996, the Board of Trustees approved the creation of a second
class of shares, Class IB, for each of the Trust's Portfolios. The Trust's
existing class of shares has been renamed to Class IA. The distribution of
Class IB shares is expected to commence during the third quarter of 1996.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
The following is a summary of the significant accounting policies of the
Trust:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are
valued at the last sale price, or, if there is no sale, at the latest
available bid price. Other unlisted stocks are valued at their last sale
price or, if no reported sale during the day, at a bid price estimated by a
broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage backed and asset backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quotes will be obtained from
a broker and converted to a price.
Purchased options, including options on futures, are valued at their last
bid price. Written options are valued at their last asked price.
Long-term corporate bonds are valued at prices obtained from a bond
pricing service of a major dealer in bonds when such prices are available;
however, when such prices are not available, such bonds are valued at a bid
price estimated by a broker.
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities are valued at
representative quoted prices.
Foreign securities not traded directly, or in American Depository Receipt
(ADR) or similar form in the United States, are valued at representative
quoted prices in the currency of the country of origin.
B-69
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
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 Board of Trustees has approved the lending of Portfolio securities,
through it's custodian bank Chase Manhattan Bank, N.A. (Chase) acting as
lending agent, to certain broker-dealers in exchange for negotiated lenders'
fees. Any such loan of portfolio securities will be continuously secured by
collateral at least equal to the value of the security loaned. All loans will
be collateralized in the form of cash or U.S. Government securities. Chase
will indemnify the Portfolios from any loss resulting from a borrower's
failure to return a loaned security when due. At June 30, 1996, the value of
securities loaned and cash collateral received were as follows:
<TABLE>
<CAPTION>
VALUE OF CASH
SECURITIES COLLATERAL
PORTFOLIO LOANED RECEIVED
- ---------------------------------- ------------- -------------
<S> <C> <C>
Intermediate Government Securities $ 8,898,310 $ 9,203,925
Quality Bond ...................... 4,769,730 5,034,750
Growth and Income ................. 13,583 13,718
Equity Index ...................... 483,663 496,300
Common Stock ...................... 184,969,040 190,604,540
Global ............................ 54,278,523 56,939,966
International ..................... 4,178,426 4,392,522
Aggressive Stock .................. 91,883,325 93,633,100
Conservative Investors ............ 20,276,194 20,917,527
Balanced .......................... 97,192,567 101,013,188
Growth Investors .................. 55,489,841 57,521,801
</TABLE>
Chase invests the cash collateral and retains a portion of the interest
earned. During the six months ended June 30, 1996, the Intermediate
Government Securities, Quality Bond, High Yield, Growth and Income, Equity
Index, Common Stock, Global, International, Aggressive Stock, Conservative
Investors, Balanced and Growth Investors Portfolios received $27,674,
$16,253, $8,919, $904, $127, $20,396, $73,956, $4,502, $59,473, $84,977,
$171,032 and $155,512, respectively, of security loan fees, net of rebates
paid. Such net fees are included in interest income in the accompanying
Statements of Operations.
B-70
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
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.
The Portfolios do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Net currency gains or losses realized and unrealized as a result of
differences between interest or dividends and withholding taxes recorded on
the Portfolio's books and the U.S. dollar equivalent amount actually received
or paid are presented under foreign currency transactions in the realized and
unrealized gains and losses section of the Statements of Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its net investment income and net realized capital gains
to shareholders of each Portfolio. Therefore, no Federal income tax provision
is required. Dividends from net investment income are declared and
distributed quarterly; dividends from net realized short-term and long-term
capital gains are declared and distributed annually to the shareholders of
the Portfolios to which such gains are attributable. All dividends are
reinvested in additional full and fractional Shares of the related
Portfolios. All dividends are distributed on a tax basis and as such, the
amounts may differ from financial statement investment income and realized
capital gains.
Options Written:
All Portfolios (except for the Money Market and Equity Index Portfolios)
may write (sell) covered options as a hedge to provide protection against
adverse movements in the price of securities in the portfolio or to enhance
investment performance. When a Portfolio writes an option, an amount equal to
the premium received by the Portfolio is recorded as a liability and is
subsequently adjusted on a daily basis to the current market price of the
option written. Premiums received from writing options which expire
unexercised are recognized as gains on the expiration date. In writing
options, a Portfolio must assume that the option may be exercised at any time
prior to the expiration of its obligation as a writer, and that in such
circumstances the net proceeds of the sale or cost of purchase of the
underlying securities pursuant to the call or put option may be substantially
below or above the prevailing market price. A Portfolio also has the
additional risk of not being able to enter into a closing purchase
transaction if a liquid secondary market does not exist and bears the risk of
unfavorable changes in the price of the financial instruments underlying the
options.
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.
B-71
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
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:
For the year ended December 31, 1995, in conformity with Statement of
Position 93-2 Determination, Disclosure and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies, the reclassification arising from current book/tax differences
resulted in increases (decreases) to the components of net assets as follows:
<TABLE>
<CAPTION>
EQUITY
QUALITY BOND HIGH YIELD INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ----------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Paid-in capital ..................... $(198,410) $ (10,868) $ (123) $ (1,132,224) $(546,316)
Undistributed (overdistributed) net
investment income .................. (737,714) 414,377 (7,126) 11,261,237 483,506
Accumulated net realized gain (loss) 936,124 (403,509) 7,249 (10,129,013) 62,810
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------ -------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Paid-in capital ..................... $ -- $(790,113) $(875) $(172,395) $ (2,453)
Undistributed (overdistributed) net
investment income .................. 246,525 26,778 -- (91,058) 388,829
Accumulated net realized gain (loss) (246,525) 763,335 875 263,453 (386,376)
</TABLE>
2. Management of the Trust
Alliance Capital Management L.P. (Alliance), a publicly traded limited
partnership, indirectly majority-owned by Equitable, is the investment
adviser. 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>
B-72
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
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, International, Aggressive
Stock, Conservative Investors, Balanced and Growth Investors Portfolios for
the six months ended June 30, 1996 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 ........................... $ -- $122,136,496 $422,773,590 $110,130,258
U.S. Government securities ............ 164,088,769 219,846,989 -- --
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... -- 127,102,352 396,667,174 44,400,391
U.S. Government securities ............ 159,170,704 205,255,219 -- --
</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 ........................... $114,828,131 $1,665,416,229 $322,208,626 $76,010,526
U.S. Government securities ............ -- -- -- --
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 4,021,055 1,115,701,806 203,497,723 14,049,691
U.S. Government securities ............ -- -- -- --
</TABLE>
<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 ........................... $1,888,579,347 $129,823,811 $941,772,165 $996,399,776
U.S. Government securities ............ -- 195,757,915 603,746,878 428,529,584
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities ........................... 1,714,440,141 87,617,225 999,175,080 716,317,178
U.S. Government securities ............ -- 198,751,274 506,404,764 538,252,404
</TABLE>
No activity is shown for the Money Market Portfolio since it trades
exclusively in short-term debt securities.
B-73
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
Transactions in options written for the six months ended June 30, 1996
are summarized as follows:
<TABLE>
<CAPTION>
COMMON STOCK
PORTFOLIO
---------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
----------- --------------
<S> <C> <C>
Options outstanding--January 1, 1996 ............... 72,400 $ 31,689,532
Options written .................................... 386,250 162,606,209
Options terminated in closing purchase transactions (177,625) (78,840,425)
Options expired .................................... (10,500) (4,158,500)
Options exercised .................................. (115,775) (50,338,886)
----------- --------------
Options outstanding --June 30, 1996 ................ 154,750 $ 60,957,930
=========== ==============
</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,
1996, the Quality Bond, Global, International, Conservative Investors,
Balanced 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
QUALITY BOND PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------- ---------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
Canadian Dollars, expiring 07/11/96 19,313 $14,030,128 $14,088,395 $(58,267)
==============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
GLOBAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------------ ----------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/01/96 ............... 200 $ 309,240 $ 310,700 $ 1,460
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring 09/20/96 ............... 20,000 13,146,217 13,149,244 (3,027)
Japanese Yen, expiring 07/12/96 ................. 1,260,000 12,765,372 12,139,528 625,844
Netherland Guilders, expiring 08/23/96-09/20/96 42,838 25,403,017 25,261,239 141,778
--------------
$766,055
==============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
INTERNATIONAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------------ ---------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/01/96-07/02/96 ..... 70 $ 108,251 $ 108,498 $ 247
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring 08/23/96-09/20/96 ..... 2,600 1,687,481 1,698,638 (11,157)
Japanese Yen, expiring 07/12/96 ................. 168,200 1,709,023 1,623,004 86,019
Netherland Guilders, expiring 08/23/96-09/20/96 3,180 1,875,871 1,870,284 5,587
--------------
$ 80,696
==============
</TABLE>
B-74
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
<TABLE>
<CAPTION>
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
CONSERVATIVE INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- -------------------------------------- ---------- ------------- --------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/02/96 .... 10 $15,503 $15,607 $104
Italian Lira, expiring 07/01/96 ...... 22,461 14,566 14,615 49
FOREIGN CURRENCY SALE CONTRACTS
Austrian Schillings, expiring 07/01/96 61 5,662 5,699 (37)
Deutsche Marks, expiring 07/03/96 .... 27 17,928 17,940 (12)
Netherland Guilders, expiring 07/01/96 10 6,094 6,096 (2)
--------------
$102
==============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
BALANCED PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- -------------------------------------- ---------- ------------- ---------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/02/96 .... 100 $153,518 $154,549 $1,031
Italian Lira, expiring 07/01/96 ...... 211,134 136,925 137,385 460
FOREIGN CURRENCY SALE CONTRACTS
Austrian Schillings, expiring 07/01/96 563 51,908 52,241 (333)
Deutsche Marks, expiring 07/03/96 .... 186 121,911 121,995 (84)
Netherland Guilders, expiring 07/01/96 96 56,251 56,272 (21)
--------------
$1,053
==============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
GROWTH INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------ ---------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
Austrian Schillings, expiring 07/03/96 ... 1,000 $ 784,550 $ 785,250 $ (700)
British Pounds, expiring 07/03/96 ........ 872 1,351,984 1,353,318 (1,334)
Deutsche Marks, expiring 08/23/96-09/20/96 9,900 5,315,109 5,912,741 (597,632)
Japanese Yen, expiring 07/03/96-07/12/96 . 588,000 5,797,798 5,585,425 212,373
Netherland Guilders, expiring 01/18/96 ... 6,100 3,609,259 3,593,097 16,162
Singapore Dollar, expiring 07/03/96 ...... 400 283,217 283,352 (135)
--------------
$(371,266)
==============
</TABLE>
B-75
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
As of June 30, 1996, 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 GROWTH AND
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Aggregate gross unrealized appreciation ... $ 14,804 $ 550,674 $ 354,031 $ 3,722,718 $ 17,507,588
Aggregate gross unrealized depreciation ... (10,515) (374,475) (1,750,877) (653,207) (2,839,917)
-------------- ------------- -------------- -------------- -------------
Net unrealized appreciation (depreciation) $ 4,289 $ 176,199 $ (1,396,846) $ 3,069,511 $ 14,667,671
============== ============= ============== ============== =============
Federal income tax cost of investments .... $351,153,077 $86,180,495 $158,396,700 $149,705,702 $140,581,928
============== ============= ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation $ 40,614,281 $1,328,875,211 $130,832,996 $ 7,295,273
Aggregate gross unrealized depreciation (2,271,169) (196,605,345) (26,901,804) (2,138,829)
-------------- -------------- -------------- ---------------
Net unrealized appreciation ............. $ 38,343,112 $1,132,269,866 $103,931,192 $ 5,156,444
-------------- -------------- -------------- ---------------
Federal income tax cost of investments . $255,500,602 $4,589,642,249 $752,956,607 $99,563,266
============== ============== ============== ===============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE CONSERVATIVE GROWTH
STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation $ 634,596,371 $ 6,575,099 $ 90,619,256 $ 66,288,416
Aggregate gross unrealized depreciation (75,401,132) (5,900,402) (32,702,002) (27,767,271)
-------------- -------------- -------------- ---------------
Net unrealized appreciation ............. $ 559,195,239 $ 674,697 $ 57,917,254 $ 38,521,145
============== ============== ============== ===============
Federal income tax cost of investments . $2,890,530,223 $269,980,267 $1,496,639,455 $1,062,594,478
============== ============== ============== ===============
</TABLE>
The Growth and Income Portfolio had net capital loss carryforwards of
$474,588 (of which $2,753 expires in the year 2001, $281,737 expires in the
year 2002 and $190,098 expires in the year 2003), the High Yield Portfolio
had net capital loss carryforwards of $1,100,531 (of which $1,059,564 expires
in the year 2002 and $40,967 expires in the year 2003), the Intermediate
Government Securities and Quality Bond Portfolios had net capital loss
carryforwards of $9,349,227 and $5,388,947, 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, 1996, 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.
B-76
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1996
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
MONEY MARKET PORTFOLIO SECURITIES PORTOFOLIO
------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
JUNE 30, 1996 1995 1996 1995
-------------- --------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold ......... 20,440,655 38,608,910 1,875,550 3,178,905
Shares issued in
reinvestment of
dividends and
distributions ...... 899,345 1,793,866 233,416 391,277
--------------- -------------- --------------- --------------
Total shares issued . 21,340,000 40,402,776 2,108,966 3,570,182
Shares redeemed .... (24,804,308) (34,441,594) (1,210,270) (1,464,671)
--------------- -------------- --------------- --------------
Net increase
(decrease) ......... (3,464,308) 5,961,182 898,696 2,105,511
=============== ============== =============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO
------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
JUNE 30, 1996 1995 1996 1995
-------------- --------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold ......... 1,731,518 2,039,780 2,790,499 4,920,577
Shares issued in
reinvestment of
dividends and
distributions ...... 528,504 941,017 1,276,136 1,087,864
--------------- -------------- --------------- --------------
Total shares issued . 2,260,022 2,980,797 4,066,635 6,008,441
Shares redeemed .... (544,119) (1,231,693) (1,025,286) (2,047,031)
--------------- -------------- --------------- --------------
Net increase
(decrease) ......... 1,715,903 1,749,104 3,041,349 3,961,410
=============== ============== =============== ==============
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO EQUITY INDEX PORTFOLIO COMMON STOCK PORTFOLIO
------------------------------- ------------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
JUNE 30, 1996 1995 1996 1995 1996 1995
-------------- --------------- -------------- --------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Shares sold .................. 4,450,302 5,330,789 8,690,156 12,811,615 26,543,287 32,314,046
Shares issued in reinvestment
of dividends and
distributions ............... 390,817 173,344 231,137 243,074 16,362,504 20,247,043
--------------- -------------- --------------- -------------- --------------- --------------
Total shares issued .......... 4,841,119 5,504,133 8,921,293 13,054,689 42,905,791 52,561,089
Shares redeemed .............. (397,762) (375,025) (716,827) (4,148,263) (5,306,211) (15,886,663)
--------------- -------------- --------------- -------------- --------------- --------------
Net increase ................. 4,443,357 5,129,108 8,204,466 8,906,426 37,599,580 36,674,426
=============== ============== =============== ============== =============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL PORTFOLIO INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO
------------------------------- -------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS APRIL 3, 1995* SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED JUNE 30, TO DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
JUNE 30, 1996 1995 1996 1995 1996 1995
-------------- --------------- --------------- --------------- -------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Shares sold .................. 8,630,263 15,621,046 7,462,571 2,781,575 13,987,480 24,290,758
Shares issued in reinvestment
of dividends and
distributions ............... 1,733,690 1,875,847 148,515 46,457 11,814,076 8,689,767
--------------- -------------- --------------- --------------- --------------- --------------
Total shares issued .......... 10,363,953 17,496,893 7,611,086 2,828,032 25,801,556 32,980,525
Shares redeemed .............. (1,332,890) (4,317,611) (1,213,387) (190,166) (6,013,062) (17,101,621)
--------------- -------------- --------------- --------------- --------------- --------------
Net increase ................. 9,031,063 13,179,282 6,397,699 2,637,866 19,788,494 15,878,904
=============== ============== =============== =============== =============== ==============
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS
PORTFOLIO BALANCED PORTFOLIO GROWTH INVESTORS PORTFOLIO
------------------------------- ------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED JUNE 30, DECEMBER 31, ENDED JUNE 30, DECEMBER 31,
JUNE 30, 1996 1995 1996 1995 1996 1995
-------------- --------------- -------------- --------------- -------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Shares sold .................. 3,344,497 4,574,632 2,171,753 3,451,513 10,391,065 16,117,087
Shares issued in reinvestment
of dividends and
distributions ............... 988,746 1,178,017 7,846,092 5,393,327 7,673,615 2,104,190
--------------- -------------- --------------- -------------- --------------- --------------
Total shares issued .......... 4,333,243 5,752,649 10,017,845 8,844,840 18,064,680 18,221,277
Shares redeemed .............. (1,274,851) (983,364) (3,007,763) (7,393,399) (355,706) (1,144,340)
=============== ============== =============== ============== =============== ==============
Net increase ................. 3,058,392 4,769,285 7,010,082 1,451,441 17,708,974 17,076,937
=============== ============== =============== ============== =============== ==============
</TABLE>
- ----------
* Commencement of operations.
B-77
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
June 30, 1996
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, 1996 are summarized as follows:
<TABLE>
<CAPTION>
PORTFOLIO AFFILIATES COST MARKET VALUE
- ------------ -------------------------------------- -------------- --------------
<S> <C> <C> <C>
Common CBL & Associates Properties ........... $ 21,426,856 $ 24,549,850
Stock Chris Craft Industries, Inc. (Class B) 12,653,058 53,919,536
Essex Property Trust, Inc. ............ 6,888,100 7,632,500
Regency Realty Corp. .................. 14,600,607 16,142,700
-------------- --------------
$ 55,568,621 $102,244,586
============== ==============
Global Nelvana Limited ....................... $ 1,348,650 $ 2,387,255
============== ==============
Aggressive Diamond Shamrock, Inc. ................ $ 63,510,313 $ 60,074,438
Stock Nine West Group, Inc. ................. 89,691,580 136,575,325
Office Max, Inc. ...................... 99,154,142 101,745,700
Polymer Group, Inc. ................... 39,189,701 35,675,500
Riscorp, Inc. (Class A) ............... 30,178,058 26,991,500
Rowan Cos., Inc. ...................... 40,559,540 70,876,700
Telephone & Data Systems, Inc. ....... 111,795,579 129,735,000
Xtra Corp. ............................ 64,891,646 60,905,700
-------------- --------------
$538,970,559 $622,579,863
============== ==============
</TABLE>
B-78
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
June 30, 1996
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(C)
MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ ----------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $10.16 $10.14 $10.12 $10.11 $10.13 $10.17
------------ ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.26 0.57 0.41 0.30 0.37 0.61
Net realized and unrealized loss on
investments ............................ -- -- -- -- (0.01) --
------------ ---------- ---------- ---------- ---------- ----------
Total from investment operations ....... 0.26 0.57 0.41 0.30 0.36 0.61
------------ ---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS:
Dividends from net investment income ... (0.27) (0.55) (0.39) (0.29) (0.38) (0.65)
------------ ---------- ---------- ---------- ---------- ----------
Total dividends ......................... (0.27) (0.55) (0.39) (0.29) (0.38) (0.65)
------------ ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $10.15 $10.16 $10.14 $10.12 $10.11 $10.13
============ ========== ========== ========== ========== ==========
Total return (d) ......................... 2.52% 5.74% 4.02% 3.00% 3.57% 6.20%
============ ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ....... $350,986 $386,691 $325,391 $248,460 $268,584 $302,395
Ratio of expenses to average net assets . 0.43%(b) 0.44% 0.42% 0.42% 0.43% 0.43%
Ratio of net investment income to average
net assets .............................. 5.12%(b) 5.53% 4.01% 2.91% 3.63% 5.96%
</TABLE>
INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(E):
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE APRIL 1, 1991 TO
30, 1996 YEAR ENDED DECEMBER 31, DECEMBER 31,
------------ -------------------------------------------- 1991
(UNAUDITED) 1995 1994 1993* 1992 ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .. $ 9.47 $ 8.87 $10.08 $10.53 $10.73 $10.00
------------ --------- --------- ---------- ---------- ----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.26 0.58 0.65 0.59 0.60 0.52
Net realized and unrealized gain (loss) on
investments .............................. (0.27) 0.57 (1.08) 0.51 (0.02) 0.66
------------ --------- --------- ---------- ---------- ----------------
Total from investment operations .......... (0.01) 1.15 (0.43) 1.10 0.58 1.18
------------ --------- --------- ---------- ---------- ----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ..... (0.26) (0.55) (0.78) (0.68) (0.60) (0.34)
Distributions from realized gains ........ -- -- -- (0.87) (0.18) (0.11)
------------ --------- --------- ---------- ---------- ----------------
Total dividends and distributions ........ (0.26) (0.55) (0.78) (1.55) (0.78) (0.45)
------------ --------- --------- ---------- ---------- ----------------
Net asset value, end of period ............. $ 9.20 $ 9.47 $ 8.87 $10.08 $10.53 $10.73
============ ========= ========= ========== ========== ================
Total return (d) ........................... (0.09)% 13.33% (4.37)% 10.58% 5.53% 12.10%
============ ========= ========= ========== ========== ================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $77,986 $71,780 $48,518 $158,511 $293,587 $241,290
Ratio of expenses to average net assets ... 0.57%(b) 0.57% 0.56% 0.53% 0.52% 0.43%
Ratio of net investment income to average
net assets ................................ 5.72%(b) 6.15% 6.75% 5.43% 5.63% 4.88%
Portfolio turnover rate .................... 230% 255% 133% 254% 316% 174%
</TABLE>
B-79
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(Continued)
June 30, 1996
QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS OCTOBER 1, 1993
ENDED JUNE YEAR ENDED DECEMBER TO DECEMBER 31,
30, 1996 31, 1993
------------ ---------------------- -----------------
(UNAUDITED) 1995 1994
---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) .......................... $9.61 $ 8.72 $ 9.82 $10.00
------------ ---------- ---------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................................ 0.27 0.57 0.66 0.11
Net realized and unrealized gain (loss) on investments and
foreign currency transactions ................................... (0.36) 0.88 (1.16) (0.16)
------------ ---------- ---------- -----------------
Total from investment operations ................................. (0.09) 1.45 (0.50) (0.05)
------------ ---------- ---------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................. (0.28) (0.56) (0.55) (0.12)
Distributions in excess of realized gains ........................ -- -- -- (0.01)
Tax return of capital distributions .............................. -- -- (0.05) --
------------ ---------- ---------- -----------------
Total dividends and distributions ................................ (0.28) (0.56) (0.60) (0.13)
------------ ---------- ---------- -----------------
Net asset value, end of period .................................... $9.24 $ 9.61 $ 8.72 $ 9.82
============ ========== ========== =================
Total return (d) .................................................. (0.90)% 17.02% (5.10)% (0.51)%
============ ========== ========== =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ................................. $167,298 $157,443 $127,575 $104,832
Ratio of expenses to average net assets ........................... 0.59%(b) 0.59% 0.59% 0.69%(b)
Ratio of net investment income to average net assets ............. 5.90%(b) 6.13% 7.17% 4.62%(b)
Portfolio turnover rate ........................................... 214% 411% 222% 77%
</TABLE>
HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ ------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .. $ 9.64 $ 8.91 $10.08 $ 9.15 $ 8.96 $ 7.97
------------ ---------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.50 0.98 0.89 0.94 0.89 0.89
Net realized and unrealized gain (loss) on
investments .............................. 0.62 0.73 (1.17) 1.10 0.19 0.99
------------ ---------- --------- --------- --------- ---------
Total from investment operations .......... 1.12 1.71 (0.28) 2.04 1.08 1.88
------------ ---------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ..... (0.50) (0.94) (0.88) (0.92) (0.89) (0.89)
Dividends in excess of net investment
income ................................... -- (0.04) (0.01) -- -- --
Distributions from realized gains ........ (0.40) -- -- (0.19) -- --
------------ ---------- --------- --------- --------- ---------
Total dividends and distributions ........ (0.90) (0.98) (0.89) (1.11) (0.89) (0.89)
------------ ---------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 9.86 $ 9.64 $8.91 $10.08 $ 9.15 $ 8.96
============ ========== ========= ========= ========= =========
Total return (d) ........................... 11.80% 19.92% (2.79)% 23.15% 12.31% 24.46%
============ ========== ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $150,816 $118,129 $73,895 $67,169 $47,687 $45,066
Ratio of expenses to average net assets ... 0.60%(b) 0.60% 0.61% 0.63% 0.60% 0.61%
Ratio of net investment income to average
net assets ................................ 9.88%(b) 10.34% 9.23% 9.52% 9.58% 10.31%
Portfolio turnover rate .................... 306% 350% 248% 280% 177% 187%
</TABLE>
B-80
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(Continued)
June 30, 1996
GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS OCTOBER 1, 1993
ENDED JUNE YEAR ENDED DECEMBER TO DECEMBER 31,
30, 1996 31, 1993
------------ -------------------- -----------------
(UNAUDITED) 1995 1994
--------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) ............... $ 11.70 $ 9.70 $ 9.95 $10.00
------------ --------- --------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.14 0.33 0.31 0.03
Net realized and unrealized gain (loss) on investments 0.68 1.97 (0.36) (0.06)
------------ --------- --------- -----------------
Total from investment operations ...................... 0.82 2.30 (0.05) (0.03)
------------ --------- --------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. (0.13) (0.30) (0.20) (0.02)
Dividends in excess of net investment income ......... -- -- -- (0.00)
Distributions from realized gains ..................... (0.26) -- -- --
Tax return of capital distributions ................... -- -- -- (0.00)
------------ --------- --------- -----------------
Total dividends and distributions ..................... (0.39) (0.30) (0.20) (0.02)
------------ --------- --------- -----------------
Net asset value, end of period ......................... $ 12.13 $11.70 $ 9.70 $ 9.95
============ ========= ========= =================
Total return (d) ....................................... 7.08% 24.07% (0.58)% (0.25)%
============ ========= ========= =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................... $155,596 $98,053 $31,522 $1,456
Ratio of expenses to average net assets ................ 0.58%(b) 0.60% 0.78% 2.70%(b)
Ratio of net investment income to average net asset ... 2.27%(b) 3.11% 3.13% 1.12%(b)
Portfolio turnover rate ................................ 39% 65% 52% 48%
Average commission rate paid (f) ....................... $0.0684 -- -- --
</TABLE>
EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE YEAR ENDED MARCH 1, 1994 TO
30, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
------------ ----------------- -----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (a) ............... $13.13 $ 9.87 $10.00
------------ ----------------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.13 0.26 0.20
Net realized and unrealized gain (loss) on investments 1.16 3.32 (0.09)
------------ ----------------- -----------------
Total from investment operations ..................... 1.29 3.58 0.11
------------ ----------------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. (0.12) (0.22) (0.20)
Distributions from realized gains .................... (0.05) (0.09) (0.03)
Distributions in excess of realized gains ............ -- (0.01) (0.01)
------------ ----------------- -----------------
Total dividends and distributions .................... (0.17) (0.32) (0.24)
------------ ----------------- -----------------
Net asset value, end of period ......................... $14.25 $13.13 $ 9.87
============ ================= =================
Total return (d) ....................................... 9.84% 36.48% 1.08%
============ ================= =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................... $296,823 $165,785 $36,748
Ratio of expenses to average net assets ................ 0.40%(b) 0.48% 0.49%(b)
Ratio of net investment income to average net assets .. 1.98%(b) 2.16% 2.42%(b)
Portfolio turnover rate ................................ 2% 9% 7%
Average commission rate paid (f) ....................... $0.0290 -- --
</TABLE>
B-81
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1996
COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ --------------------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) .... $16.48 $ 13.36 $ 14.65 $ 13.49 $ 14.18 $ 11.22
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.09 0.20 0.20 0.23 0.24 0.32
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ............................. 1.34 4.12 (0.51) 3.10 0.20 3.91
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations ........... 1.43 4.32 (0.31) 3.33 0.44 4.23
------------ ------------ ------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.08) (0.20) (0.19) (0.23) (0.24) (0.29)
Dividends in excess of net investment
income ................................... -- (0.02) (0.01) (0.00) -- --
Distributions from realized gains .......... (0.80) (0.95) (0.77) (1.94) (0.89) (0.98)
Distributions in excess of realized gains .. -- (0.03) -- -- -- --
Tax return of capital distributions ........ -- -- (0.01) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and distributions .......... (0.88) (1.20) (0.98) (2.17) (1.13) (1.27)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period ............... $17.03 $ 16.48 $ 13.36 $ 14.65 $ 13.49 $ 14.18
============ ============ ============ ============ ============ ============
Total return (d) ............................. 8.67% 32.45% (2.14)% 24.84% 3.22% 37.90%
============ ============ ============ ============ ============ ============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $5,682,288 $4,879,677 $3,466,245 $3,125,128 $2,307,292 $2,126,402
Ratio of expenses to average net assets ..... 0.38%(b) 0.38% 0.38% 0.38% 0.38% 0.40%
Ratio of net investment income to average net
assets ..................................... 0.96%(b) 1.27% 1.40% 1.55% 1.73% 2.32%
Portfolio turnover rate ...................... 21% 61% 52% 82% 71% 90%
Average commission rate paid (f) ............. $0.0611 -- -- -- -- --
</TABLE>
B-82
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(Continued)
June 30, 1996
GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ --------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) . $15.74 $ 13.87 $ 13.62 $ 11.41 $ 11.64 $ 9.76
------------ ---------- ---------- ---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................... 0.12 0.26 0.20 0.08 0.14 0.22
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ............................ 1.16 2.32 0.52 3.58 (0.20) 2.74
------------ ---------- ---------- ---------- --------- ---------
Total from investment operations ........ 1.28 2.58 0.72 3.66 (0.06) 2.96
------------ ---------- ---------- ---------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .... (0.15) (0.25) (0.17) (0.15) (0.11) (0.23)
Distributions from realized gains ....... (0.41) (0.42) (0.28) (1.30) (0.06) (0.85)
Distributions in excess of realized gains -- (0.03) (0.00) (0.00) -- --
Tax return of capital distributions ..... -- (0.01) (0.02) -- -- --
------------ ---------- ---------- ---------- --------- ---------
Total dividends and distributions ....... (0.56) (0.71) (0.47) (1.45) (0.17) (1.08)
------------ ---------- ---------- ---------- --------- ---------
Net asset value, end of period ............ $16.46 $ 15.74 $ 13.87 $ 13.62 $ 11.41 $ 11.64
============ ========== ========== ========== ========= =========
Total return (d) .......................... 8.16% 18.81% 5.23% 32.09% (0.50)% 30.54%
============ ========== ========== ========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $865,962 $686,140 $421,698 $141,257 $49,171 $39,487
Ratio of expenses to average net assets .. 0.59%(b) 0.61% 0.69% 0.84% 0.70% 0.75%
Ratio of net investment income to average
net assets ............................... 1.50%(b) 1.76% 1.41% 0.62% 1.20% 1.94%
Portfolio turnover rate ................... 30% 67% 71% 150% 216% 267%
Average commission rate paid (f) .......... $0.0423 -- -- -- -- --
</TABLE>
INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE APRIL 3, 1995 TO
30, 1996 DECEMBER 31, 1995
------------ -----------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) ............. $10.87 $10.00
------------ -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.08 0.14
Net realized and unrealized gain on investments .... 0.87 0.98
------------ -----------------
Total from investment operations ................... 0.95 1.12
------------ -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... (0.08) (0.07)
Dividends in excess of net investment income ....... -- (0.13)
Distributions from realized gains .................. (0.12) (0.05)
------------ -----------------
Total dividends and distributions .................. (0.20) (0.25)
------------ -----------------
Net asset value, end of period ....................... $11.62 $10.87
============ =================
Total return (d) ..................................... 8.70% 11.29%
============ =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................... $104,962 $28,684
Ratio of expenses to average net assets .............. 0.99%(b) 1.03%(b)
Ratio of net investment income to average net assets 1.50%(b) 1.71%(b)
Portfolio turnover rate .............................. 25% 56%
Average commission rate paid (f) ..................... $0.0270 --
</TABLE>
B-83
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(Continued)
June 30, 1996
AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ ------------------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
------------ ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................... $35.68 $ 30.63 $31.89 $ 29.81 $ 33.82 $ 19.37
------------ ------------ ------------ ------------ ------------ ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.05 0.10 0.04 0.09 0.17 0.12
Net realized and unrealized gain
(loss) on investments ................ 6.01 9.54 (1.26) 4.91 (1.25) 16.68
------------ ------------ ------------ ------------ ------------ ----------
Total from investment operations ..... 6.06 9.64 (1.22) 5.00 (1.08) 16.80
------------ ------------ ------------ ------------ ------------ ----------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.04) (0.10) (0.04) (0.09) (0.18) (0.10)
Distributions from realized gains .... (5.08) (4.49) -- (2.75) (2.75) (2.25)
Distributions in excess of realized
gains ................................ -- -- -- (0.07) -- --
Tax return of capital distributions .. -- -- (0.00) (0.01) -- --
------------ ------------ ------------ ------------ ------------ ----------
Total dividends and distributions. ... (5.12) (4.59) (0.04) (2.92) (2.93) (2.35)
------------ ------------ ------------ ------------ ------------ ----------
Net asset value, end of period ......... $36.62 $ 35.68 $ 30.63 $ 31.89 $ 29.81 $ 33.82
============ ============ ============ ============ ============ ==========
Total return (d) ....................... 17.22% 31.63% (3.81)% 16.77% (3.16)% 86.87%
============ ============ ============ ============ ============ ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $3,496,588 $2,700,515 $1,832,164 $1,557,332 $1,210,576 $959,257
Ratio of expenses to average net assets 0.48%(b) 0.49% 0.49% 0.49% 0.50% 0.51%
Ratio of net investment income to
average net assets .................... 0.24%(b) 0.28% 0.12% 0.28% 0.57% 0.40%
Portfolio turnover rate ................ 61% 127% 92% 89% 68% 117%
Average commission rate paid (f) ...... $0.0266 -- -- -- -- --
</TABLE>
CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ --------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $11.52 $ 10.15 $ 11.12 $ 10.94 $ 11.29 $ 10.23
------------ ---------- ---------- ---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................. 0.27 0.60 0.55 0.52 0.64 0.69
Net realized and unrealized gain
(loss) on investments ................. (0.39) 1.43 (1.00) 0.65 (0.01) 1.28
------------ ---------- ---------- ---------- --------- ---------
Total from investment operations ...... (0.12) 2.03 (0.45) 1.17 0.63 1.97
------------ ---------- ---------- ---------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income . (0.27) (0.59) (0.52) (0.50) (0.62) (0.66)
Dividends in excess of net investment
income ................................. -- -- -- (0.00) -- --
Distributions from realized gains ..... (0.18) (0.07) -- (0.49) (0.36) (0.25)
------------ ---------- ---------- ---------- --------- ---------
Total dividends and distributions ..... (0.45) (0.66) (0.52) (0.99) (0.98) (0.91)
------------ ---------- ---------- ---------- --------- ---------
Net asset value, end of period .......... $10.95 $ 11.52 $ 10.15 $ 11.12 $ 10.94 $ 11.29
============ ========== ========== ========== ========= =========
Total return (d) ........................ (1.08)% 20.40% (4.10)% 10.76% 5.64 % 19.80%
============ ========== ========== ========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $273,045 $252,101 $173,691 $114,418 $70,675 $50,279
Ratio of expenses to average net assets 0.58%(b) 0.59% 0.59% 0.60% 0.61% 0.64%
Ratio of net investment income to
average net assets ..................... 4.72%(b) 5.48% 5.22% 4.49% 5.77% 6.45%
Portfolio turnover rate ................. 116% 287% 228% 178% 136% 171%
Average commission rate paid (f) ....... $0.0426 -- -- -- -- --
</TABLE>
B-84
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS --(Continued)
June 30, 1996
BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ -------------------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................... $16.76 $14.87 $16.67 $16.19 $18.48 $14.40
------------ ------------ ------------ ------------ ------------ -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.27 0.54 0.45 0.50 0.56 0.60
Net realized and unrealized gain
(loss) on investments ................ 0.42 2.36 (1.78) 1.46 (1.11) 5.23
------------ ------------ ------------ ------------ ------------ -----------
Total from investment operations ..... 0.69 2.90 (1.33) 1.96 (0.55) 5.83
------------ ------------ ------------ ------------ ------------ -----------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.26) (0.54) (0.44) (0.50) (0.55) (0.55)
Dividends in excess of net investment
income ................................ -- -- (0.03) -- -- --
Distributions from realized gains .... (1.13) (0.47) -- (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 .... (1.39) (1.01) (0.47) (1.48) (1.74) (1.75)
------------ ------------ ------------ ------------ ------------ -----------
Net asset value, end of period ......... $16.06 $16.76 $14.87 $16.67 $16.19 $18.48
============ ============ ============ ============ ============ ===========
Total return (d) ....................... 4.22% 19.75% (8.02)% 12.28% (2.85)% 41.25%
============ ============ ============ ============ ============ ===========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $1,572,620 $1,523,142 $1,329,820 $1,364,640 $1,076,670 $964,262
Ratio of expenses to average net assets 0.39%(b) 0.40% 0.39% 0.39% 0.40% 0.41%
Ratio of net investment income to
average net assets .................... 3.07%(b) 3.33% 2.87% 2.99% 3.30% 3.60%
Portfolio turnover rate ................ 104% 186% 115% 99% 91% 159%
Average commission rate paid (f) ...... $0.0461 -- -- -- -- --
</TABLE>
GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
30, 1996 YEAR ENDED DECEMBER 31,
------------ ---------------------------------------------------------
(UNAUDITED) 1995 1994 1993* 1992 1991
---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................... $17.68 $ 14.66 $ 15.61 $ 14.69 $ 15.17 $ 11.03
------------ ---------- ---------- ---------- ---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.23 0.57 0.50 0.43 0.44 0.41
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .............. 0.60 3.24 (0.98) 1.79 0.28 4.93
------------ ---------- ---------- ---------- ---------- ---------
Total from investment operations ..... 0.83 3.81 (0.48) 2.22 0.72 5.34
------------ ---------- ---------- ---------- ---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income . (0.23) (0.54) (0.46) (0.42) (0.41) (0.37)
Dividends in excess of net investment
income ............................. -- (0.01) (0.01) -- -- --
Distributions from realized gains .... (1.85) (0.24) -- (0.88) (0.79) (0.83)
------------ ---------- ---------- ---------- ---------- ---------
Total dividends and distributions .... (2.08) (0.79) (0.47) (1.30) (1.20) (1.20)
------------ ---------- ---------- ---------- ---------- ---------
Net asset value, end of period ......... $16.43 $ 17.68 $ 14.66 $ 15.61 $ 14.69 $ 15.17
============ ========== ========== ========== ========== =========
Total return (d) ....................... 4.78% 26.37% (3.15)% 15.26% 4.85% 48.83%
============ ========== ========== ========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $1,123,566 $896,134 $492,478 $278,467 $148,650 $84,338
Ratio of expenses to average net assets 0.55%(b) 0.56% 0.59% 0.62% 0.60% 0.66%
Ratio of net investment income to
average net assets ................... 2.57%(b) 3.43% 3.32% 2.71% 3.00% 3.03%
Portfolio turnover rate ................ 141% 107% 131% 118% 129% 139%
Average commission rate paid (f) ...... $0.0499 -- -- -- -- --
</TABLE>
B-85
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
June 30, 1996
* 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.
(f) For fiscal years beginning on or after September 1, 1995, a portfolio
is required to disclose its average commission rate paid per share for
trades on which commissions are charged.
B-86
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> COMMON STOCK PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 4,580,360,035
<INVESTMENTS-AT-VALUE> 5,721,912,115
<RECEIVABLES> 65,495,441
<ASSETS-OTHER> 323,303
<OTHER-ITEMS-ASSETS> 190,604,540
<TOTAL-ASSETS> 5,978,335,399
<PAYABLE-FOR-SECURITIES> 47,814,127
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 248,233,617
<TOTAL-LIABILITIES> 296,047,744
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,557,201,213
<SHARES-COMMON-STOCK> 333,735,561
<SHARES-COMMON-PRIOR> 296,135,981
<ACCUMULATED-NII-CURRENT> 8,225,510
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (30,003,943)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,146,864,875
<NET-ASSETS> 5,682,287,655
<DIVIDEND-INCOME> 33,362,471
<INTEREST-INCOME> 2,155,177
<OTHER-INCOME> 0
<EXPENSES-NET> 10,070,752
<NET-INVESTMENT-INCOME> 25,446,896
<REALIZED-GAINS-CURRENT> 256,172,454
<APPREC-INCREASE-CURRENT> 158,072,569
<NET-CHANGE-FROM-OPS> 439,691,919
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (25,467,481)
<DISTRIBUTIONS-OF-GAINS> (252,068,647)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26,543,287
<NUMBER-OF-SHARES-REDEEMED> (5,306,211)
<SHARES-REINVESTED> 16,362,504
<NET-CHANGE-IN-ASSETS> 802,610,655
<ACCUMULATED-NII-PRIOR> 8,246,095
<ACCUMULATED-GAINS-PRIOR> (34,107,750)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,448,391
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,070,752
<AVERAGE-NET-ASSETS> 5,340,526,254
<PER-SHARE-NAV-BEGIN> 16.48
<PER-SHARE-NII> 0.09
<PER-SHARE-GAIN-APPREC> 1.34
<PER-SHARE-DIVIDEND> (0.08)
<PER-SHARE-DISTRIBUTIONS> (0.80)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.03
<EXPENSE-RATIO> 0.38
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> MONEY MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 351,153,075
<INVESTMENTS-AT-VALUE> 351,157,366
<RECEIVABLES> 0
<ASSETS-OTHER> 416,907
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 351,574,273
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 588,154
<TOTAL-LIABILITIES> 588,154
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 350,949,902
<SHARES-COMMON-STOCK> 34,592,854
<SHARES-COMMON-PRIOR> 38,057,162
<ACCUMULATED-NII-CURRENT> 31,926
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,291
<NET-ASSETS> 350,986,119
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9,823,815
<OTHER-INCOME> 0
<EXPENSES-NET> 763,645
<NET-INVESTMENT-INCOME> 9,060,170
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (161,116)
<NET-CHANGE-FROM-OPS> 8,899,054
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (9,126,051)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,440,655
<NUMBER-OF-SHARES-REDEEMED> (24,804,308)
<SHARES-REINVESTED> 899,345
<NET-CHANGE-IN-ASSETS> (35,704,827)
<ACCUMULATED-NII-PRIOR> 97,807
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 712,038
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 763,645
<AVERAGE-NET-ASSETS> 355,987,870
<PER-SHARE-NAV-BEGIN> 10.16
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.27)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.15
<EXPENSE-RATIO> 0.43
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> BALANCED PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 1,495,521,042
<INVESTMENTS-AT-VALUE> 1,554,556,709
<RECEIVABLES> 24,236,515
<ASSETS-OTHER> 2,230,238
<OTHER-ITEMS-ASSETS> 101,013,188
<TOTAL-ASSETS> 1,682,036,650
<PAYABLE-FOR-SECURITIES> 7,850,653
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 101,565,807
<TOTAL-LIABILITIES> 109,416,460
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,514,324,824
<SHARES-COMMON-STOCK> 97,909,914
<SHARES-COMMON-PRIOR> 90,899,832
<ACCUMULATED-NII-CURRENT> 215,504
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (958,243)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 59,038,105
<NET-ASSETS> 1,572,620,190
<DIVIDEND-INCOME> 5,643,100
<INTEREST-INCOME> 21,220,208
<OTHER-INCOME> 0
<EXPENSES-NET> 3,057,941
<NET-INVESTMENT-INCOME> 23,805,367
<REALIZED-GAINS-CURRENT> 101,994,268
<APPREC-INCREASE-CURRENT> (61,791,383)
<NET-CHANGE-FROM-OPS> 64,008,252
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (23,676,462)
<DISTRIBUTIONS-OF-GAINS> (102,312,878)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,171,753
<NUMBER-OF-SHARES-REDEEMED> (3,007,763)
<SHARES-REINVESTED> 7,846,092
<NET-CHANGE-IN-ASSETS> 49,478,462
<ACCUMULATED-NII-PRIOR> 86,599
<ACCUMULATED-GAINS-PRIOR> (639,633)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,855,404
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,057,941
<AVERAGE-NET-ASSETS> 1,557,321,042
<PER-SHARE-NAV-BEGIN> 16.76
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 0.42
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> (1.13)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.06
<EXPENSE-RATIO> 0.39
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> AGGRESSIVE STOCK PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 2,886,487,158
<INVESTMENTS-AT-VALUE> 3,449,725,462
<RECEIVABLES> 69,676,951
<ASSETS-OTHER> 93,116
<OTHER-ITEMS-ASSETS> 93,633,100
<TOTAL-ASSETS> 3,613,128,629
<PAYABLE-FOR-SECURITIES> 21,478,107
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 95,062,389
<TOTAL-LIABILITIES> 116,540,496
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,934,385,801
<SHARES-COMMON-STOCK> 95,479,396
<SHARES-COMMON-PRIOR> 75,690,902
<ACCUMULATED-NII-CURRENT> (15,869)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,020,103)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 563,238,304
<NET-ASSETS> 3,496,588,133
<DIVIDEND-INCOME> 3,001,122
<INTEREST-INCOME> 8,222,289
<OTHER-INCOME> 0
<EXPENSES-NET> 7,474,025
<NET-INVESTMENT-INCOME> 3,749,386
<REALIZED-GAINS-CURRENT> 425,971,323
<APPREC-INCREASE-CURRENT> 50,076,496
<NET-CHANGE-FROM-OPS> 479,797,205
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,761,126)
<DISTRIBUTIONS-OF-GAINS> (423,010,089)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,987,480
<NUMBER-OF-SHARES-REDEEMED> (6,013,062)
<SHARES-REINVESTED> 11,814,076
<NET-CHANGE-IN-ASSETS> 796,073,284
<ACCUMULATED-NII-PRIOR> (4,129)
<ACCUMULATED-GAINS-PRIOR> (3,981,337)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,136,116
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,474,025
<AVERAGE-NET-ASSETS> 3,125,330,624
<PER-SHARE-NAV-BEGIN> 35.68
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 6.01
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (5.08)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 36.62
<EXPENSE-RATIO> 0.48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> HIGH YIELD PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 149,604,662
<INVESTMENTS-AT-VALUE> 152,775,213
<RECEIVABLES> 29,214,555
<ASSETS-OTHER> 93,931
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 182,083,699
<PAYABLE-FOR-SECURITIES> 31,186,988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80,815
<TOTAL-LIABILITIES> 31,267,803
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 147,557,971
<SHARES-COMMON-STOCK> 15,295,535
<SHARES-COMMON-PRIOR> 12,254,186
<ACCUMULATED-NII-CURRENT> (238,919)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 326,293
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,170,551
<NET-ASSETS> 150,815,896
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,994,802
<OTHER-INCOME> 0
<EXPENSES-NET> 397,918
<NET-INVESTMENT-INCOME> 6,596,884
<REALIZED-GAINS-CURRENT> 7,182,086
<APPREC-INCREASE-CURRENT> 1,075,442
<NET-CHANGE-FROM-OPS> 14,854,412
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,858,360)
<DISTRIBUTIONS-OF-GAINS> (5,727,762)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,790,499
<NUMBER-OF-SHARES-REDEEMED> (1,025,286)
<SHARES-REINVESTED> 1,276,136
<NET-CHANGE-IN-ASSETS> 32,687,313
<ACCUMULATED-NII-PRIOR> 22,557
<ACCUMULATED-GAINS-PRIOR> (1,128,031)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 367,345
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 397,918
<AVERAGE-NET-ASSETS> 134,245,166
<PER-SHARE-NAV-BEGIN> 9.64
<PER-SHARE-NII> 0.50
<PER-SHARE-GAIN-APPREC> 0.62
<PER-SHARE-DIVIDEND> (0.50)
<PER-SHARE-DISTRIBUTIONS> (0.40)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.86
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> GLOBAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 751,523,111
<INVESTMENTS-AT-VALUE> 856,887,799
<RECEIVABLES> 15,335,185
<ASSETS-OTHER> 5,321,363
<OTHER-ITEMS-ASSETS> 56,939,966
<TOTAL-ASSETS> 934,484,313
<PAYABLE-FOR-SECURITIES> 11,110,520
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 57,411,632
<TOTAL-LIABILITIES> 68,522,152
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 760,625,416
<SHARES-COMMON-STOCK> 52,622,055
<SHARES-COMMON-PRIOR> 43,590,992
<ACCUMULATED-NII-CURRENT> (1,329,897)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 537,188
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 106,129,454
<NET-ASSETS> 865,962,161
<DIVIDEND-INCOME> 5,331,269
<INTEREST-INCOME> 2,766,680
<OTHER-INCOME> 0
<EXPENSES-NET> 2,297,713
<NET-INVESTMENT-INCOME> 5,800,236
<REALIZED-GAINS-CURRENT> 23,239,820
<APPREC-INCREASE-CURRENT> 31,152,168
<NET-CHANGE-FROM-OPS> 60,192,224
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7,585,719)
<DISTRIBUTIONS-OF-GAINS> 20,760,499
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,630,263
<NUMBER-OF-SHARES-REDEEMED> (1,332,890)
<SHARES-REINVESTED> 1,733,690
<NET-CHANGE-IN-ASSETS> 179,821,768
<ACCUMULATED-NII-PRIOR> 455,586
<ACCUMULATED-GAINS-PRIOR> (1,942,133)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,037,276
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,297,713
<AVERAGE-NET-ASSETS> 777,653,413
<PER-SHARE-NAV-BEGIN> 15.74
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 1.16
<PER-SHARE-DIVIDEND> (0.15)
<PER-SHARE-DISTRIBUTIONS> (0.41)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.46
<EXPENSE-RATIO> 0.59
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> CONSERVATIVE INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 269,888,906
<INVESTMENTS-AT-VALUE> 270,654,964
<RECEIVABLES> 3,458,568
<ASSETS-OTHER> 1,284,614
<OTHER-ITEMS-ASSETS> 20,917,527
<TOTAL-ASSETS> 296,315,673
<PAYABLE-FOR-SECURITIES> 545,209
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,725,021
<TOTAL-LIABILITIES> 23,270,230
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 272,253,474
<SHARES-COMMON-STOCK> 24,941,676
<SHARES-COMMON-PRIOR> 21,883,284
<ACCUMULATED-NII-CURRENT> 55,279
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (29,438)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 766,128
<NET-ASSETS> 273,045,443
<DIVIDEND-INCOME> 575,842
<INTEREST-INCOME> 6,580,450
<OTHER-INCOME> 0
<EXPENSES-NET> 781,274
<NET-INVESTMENT-INCOME> 6,375,018
<REALIZED-GAINS-CURRENT> 4,431,813
<APPREC-INCREASE-CURRENT> (13,662,350)
<NET-CHANGE-FROM-OPS> (2,855,519)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,382,765)
<DISTRIBUTIONS-OF-GAINS> 4,461,251
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,344,497
<NUMBER-OF-SHARES-REDEEMED> (1,274,851)
<SHARES-REINVESTED> 988,746
<NET-CHANGE-IN-ASSETS> 20,944,448
<ACCUMULATED-NII-PRIOR> 63,026
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 743,243
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 781,274
<AVERAGE-NET-ASSETS> 271,408,757
<PER-SHARE-NAV-BEGIN> 11.52
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> (0.39)
<PER-SHARE-DIVIDEND> (0.27)
<PER-SHARE-DISTRIBUTIONS> (0.18)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.95
<EXPENSE-RATIO> 0.58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> GROWTH INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 1,061,575,397
<INVESTMENTS-AT-VALUE> 1,101,115,623
<RECEIVABLES> 38,258,717
<ASSETS-OTHER> 5,058,869
<OTHER-ITEMS-ASSETS> 57,521,801
<TOTAL-ASSETS> 1,201,955,010
<PAYABLE-FOR-SECURITIES> 19,995,995
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58,392,723
<TOTAL-LIABILITIES> 78,388,718
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,084,432,815
<SHARES-COMMON-STOCK> 68,386,499
<SHARES-COMMON-PRIOR> 50,677,525
<ACCUMULATED-NII-CURRENT> (389,293)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 344,846
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39,177,924
<NET-ASSETS> 1,123,566,292
<DIVIDEND-INCOME> 4,895,888
<INTEREST-INCOME> 10,936,096
<OTHER-INCOME> 0
<EXPENSES-NET> 2,794,634
<NET-INVESTMENT-INCOME> 13,037,350
<REALIZED-GAINS-CURRENT> 113,119,981
<APPREC-INCREASE-CURRENT> (79,174,075)
<NET-CHANGE-FROM-OPS> 46,983,256
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (13,532,611)
<DISTRIBUTIONS-OF-GAINS> (112,377,572)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,391,065
<NUMBER-OF-SHARES-REDEEMED> (355,706)
<SHARES-REINVESTED> 7,673,615
<NET-CHANGE-IN-ASSETS> 227,432,432
<ACCUMULATED-NII-PRIOR> 105,968
<ACCUMULATED-GAINS-PRIOR> (397,563)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,629,107
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,794,634
<AVERAGE-NET-ASSETS> 1,020,626,596
<PER-SHARE-NAV-BEGIN> 17.68
<PER-SHARE-NII> 0.23
<PER-SHARE-GAIN-APPREC> 0.60
<PER-SHARE-DIVIDEND> (0.23)
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.43
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 86,180,495
<INVESTMENTS-AT-VALUE> 86,356,694
<RECEIVABLES> 6,755,724
<ASSETS-OTHER> 108,444
<OTHER-ITEMS-ASSETS> 9,203,925
<TOTAL-ASSETS> 102,424,787
<PAYABLE-FOR-SECURITIES> 15,195,240
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,243,689
<TOTAL-LIABILITIES> 24,438,929
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 87,909,233
<SHARES-COMMON-STOCK> 8,476,155
<SHARES-COMMON-PRIOR> 7,577,459
<ACCUMULATED-NII-CURRENT> 8,595
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (10,108,169)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 176,199
<NET-ASSETS> 77,985,858
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,346,789
<OTHER-INCOME> 0
<EXPENSES-NET> 211,686
<NET-INVESTMENT-INCOME> 2,135,103
<REALIZED-GAINS-CURRENT> (730,440)
<APPREC-INCREASE-CURRENT> (1,470,778)
<NET-CHANGE-FROM-OPS> (66,115)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,149,285)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,875,550
<NUMBER-OF-SHARES-REDEEMED> (1,210,270)
<SHARES-REINVESTED> 233,416
<NET-CHANGE-IN-ASSETS> 6,206,033
<ACCUMULATED-NII-PRIOR> 22,777
<ACCUMULATED-GAINS-PRIOR> (9,377,729)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 187,083
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 211,686
<AVERAGE-NET-ASSETS> 75,064,589
<PER-SHARE-NAV-BEGIN> 9.47
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> (0.27)
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.20
<EXPENSE-RATIO> 0.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> QUALITY BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 158,360,796
<INVESTMENTS-AT-VALUE> 156,999,854
<RECEIVABLES> 14,652,050
<ASSETS-OTHER> 3,101,575
<OTHER-ITEMS-ASSETS> 5,034,750
<TOTAL-ASSETS> 179,788,229
<PAYABLE-FOR-SECURITIES> 7,309,577
<SENIOR-LONG-TERM-DEBT> 0
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</TABLE>
<TABLE> <S> <C>
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<SERIES>
<NUMBER> 11
<NAME> GROWTH & INCOME PORTFOLIO
<S> <C>
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<PERIOD-END> JUN-30-1996
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> EQUITY INDEX PORTFOLIO
<S> <C>
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<PERIOD-END> JUN-30-1996
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> INTERNATIONAL PORTFOLIO
<S> <C>
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</TABLE>
