<PAGE>
THE HUDSON RIVER TRUST
............................................................................
SEMI-ANNUAL REPORT
JUNE 30, 1997
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE ALLIANCE
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE 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 (Notes 1 and 4).......... $455,885,216 $102,756,180 $177,262,700 $266,443,610 $407,494,525
Cash.......................................... 536,208 102,474 251,849 2,663,223 --
Foreign cash.................................. -- -- -- -- --
Receivable for securities sold................ -- 8,258,245 10,700,185 27,642,260 188,243
Deposits received for securities lending...... -- 22,219,089 26,009,563 -- 33,894,576
Receivable from Separate Accounts for Trust
shares sold.................................. 6,949,459 105,119 115,899 1,009,210 2,765,828
Unrealized appreciation of forward currency
contracts (Notes 1 and 4).................... -- -- -- -- --
Dividends, interest and other receivables..... 2,721,734 988,879 1,947,802 4,683,120 1,061,512
------------ ------------ ------------ ------------ ------------
Total assets................................. 466,092,617 134,429,986 216,287,998 302,441,423 445,404,684
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Options written at value (Premiums received:
Alliance Common Stock
Portfolio--$96,759,950)(Notes 1 and 4)....... -- -- -- -- --
Payable to custodian.......................... -- -- -- -- 128,336
Payable for securities purchased.............. -- 8,994,613 10,576,667 9,081,503 10,212,142
Payable for securities loaned................. -- 22,219,089 26,009,563 -- 33,894,576
Payable to Separate Accounts for Trust shares
redeemed..................................... -- -- -- -- --
Unrealized depreciation of forward currency
contracts (Notes 1 and 4).................... -- -- -- -- --
Variation margin payable on futures contracts. -- -- -- -- --
Distribution fees payable..................... 4,573 28 -- 2,536 257
Investment advisory fees payable.............. 120,275 43,631 71,629 146,634 162,347
Trustees' fees payable........................ 26,511 5,575 5,194 6,571 4,688
Accrued expenses.............................. 9,911 9,133 12,239 9,178 11,010
------------ ------------ ------------ ------------ ------------
Total liabilities............................ 161,270 31,272,069 36,675,292 9,246,422 44,413,356
------------ ------------ ------------ ------------ ------------
NET ASSETS.................................... $465,931,347 $103,157,917 $179,612,706 $293,195,001 $400,991,328
============ ============ ============ ============ ============
Investments at cost........................... $455,780,064 $102,447,147 $175,444,768 $261,045,172 $355,229,214
============ ============ ============ ============ ============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital.............................. $465,552,201 $112,440,474 $181,867,504 $278,265,383 $333,842,150
Accumulated undistributed (overdistributed)
net investment income....................... 273,994 52,930 (118,697) 254,275 35,001
Accumulated undistributed net realized gain
(loss)...................................... -- (9,644,520) (3,954,033) 9,276,905 14,848,866
Unrealized appreciation of investments and
foreign currency denominated assets and
liabilities................................. 105,152 309,033 1,817,932 5,398,438 52,265,311
------------ ------------ ------------ ------------ ------------
NET ASSETS.................................... $465,931,347 $103,157,917 $179,612,706 $293,195,001 $400,991,328
============ ============ ============ ============ ============
CLASS IA SHARES:
Net Assets.................................... $439,094,615 $102,903,941 $179,612,706 $279,192,929 $398,170,625
============ ============ ============ ============ ============
Shares outstanding (Note 5)................... 43,149,403 11,096,380 18,870,321 26,774,672 27,008,882
============ ============ ============ ============ ============
Net asset value, offering and redemption
price per share (Note 1)..................... $ 10.18 $ 9.27 $ 9.52 $ 10.43 $ 14.74
============ ============ ============ ============ ============
CLASS IB SHARES:
Net Assets.................................... $ 26,836,732 $ 253,976 $ 14,002,072 $ 2,820,703
============ ============ ============ ============ ============
Shares outstanding (Note 5)................... 2,639,883 27,395 1,344,462 191,401
============ ============ ============ ============ ============
Net asset value, offering and redemption
price per share (Note 1)..................... $ 10.17 $ 9.27 $ 10.41 $ 14.74
============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
2
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
ALLIANCE ALLIANCE ALLIANCE ALLIANCE AGGRESSIVE SMALL CAP CONSERVATIVE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK GROWTH INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- -------------- -------------- --------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
$667,259,258 $8,140,002,697 $1,179,248,234 $216,317,369 $4,259,893,470 $12,861,549 $285,944,398
91,236 2,107,205 199,638 -- 197,501 182,321 1,731,910
-- -- 13,629,124 3,301,449 -- -- 19,705
-- 31,677,205 6,391,648 731,523 70,264,082 231,120 673,294
35,290,004 436,625,273 120,706,863 21,721,648 493,848,504 -- 48,771,218
6,050,378 14,970,433 724,670 452,304 15,634,737 732,850 --
-- -- 2,693,997 917,241 -- -- --
785,044 8,437,917 2,156,445 795,828 438,792 1,583 2,449,443
- -------------- -------------- -------------- ------------- -------------- ------------ -------------
709,475,920 8,633,820,730 1,325,750,619 244,237,362 4,840,277,086 14,009,423 339,589,968
- -------------- -------------- -------------- ------------- -------------- ------------ -------------
-- 88,224,105 -- -- -- -- --
-- -- -- 49,417 -- -- --
721,144 27,963,423 7,464,627 2,311,309 69,586,968 1,765,668 492,268
35,290,004 436,625,273 120,706,863 21,721,648 493,848,504 -- 48,771,218
-- -- -- -- -- -- 326,641
-- -- -- -- -- -- 340
49,875 -- -- -- -- -- --
-- 10,110 2,882 55 4,501 221 31
177,401 2,503,903 646,545 163,271 1,938,753 5,788 116,560
8,233 247,259 26,041 2,562 117,566 -- 8,845
12,417 77,200 105,173 44,642 54,333 1,750 39,125
- -------------- -------------- -------------- ------------- -------------- ------------ -------------
36,259,074 555,651,273 128,952,131 24,292,904 565,550,625 1,773,427 49,755,028
- -------------- -------------- -------------- ------------- -------------- ------------ -------------
$673,216,846 $8,078,169,457 $1,196,798,488 $219,944,458 $4,274,726,461 $12,235,996 $289,834,940
============== ============== ============== ============= ============== ============ =============
$514,957,163 $5,900,491,952 $ 969,114,185 $197,887,135 $3,726,094,126 $12,050,025 $265,640,280
============== ============== ============== ============= ============== ============ =============
$518,540,323 $5,622,537,105 $ 963,478,890 $197,091,570 $3,649,651,325 $11,395,500 $269,274,779
(16,461) (274,897) (3,224,979) (613,149) (230,816) -- 105,039
2,414,764 207,860,773 23,705,299 4,108,822 91,506,608 28,972 152,501
152,278,220 2,248,046,476 212,839,278 19,357,215 533,799,344 811,524 20,302,621
- -------------- -------------- -------------- ------------- -------------- ------------ -------------
$673,216,846 $8,078,169,457 $1,196,798,488 $219,944,458 $4,274,726,461 $12,235,996 $289,834,940
============== ============== ============== ============= ============== ============ =============
$673,154,079 $8,019,642,546 $1,182,401,796 $219,541,363 $4,250,363,481 $ 9,725,933 $289,617,239
============== ============== ============== ============= ============== ============ =============
37,191,357 388,625,308 63,956,431 17,502,541 114,774,149 828,337 24,664,837
============== ============== ============== ============= ============== ============ =============
$18.10 $20.64 $18.49 $12.54 $37.03 $11.74 $11.74
============== ============== ============== ============= ============== ============ =============
$62,767 $58,526,911 $14,396,692 $403,095 $24,362,980 $2,510,063 $217,701
============== ============== ============== ============= ============== ============ =============
3,469 2,839,484 779,513 32,145 658,584 213,846 18,545
============== ============== ============== ============= ============== ============ =============
$18.10 $20.61 $18.47 $12.54 $36.99 $11.74 $11.74
============== ============== ============== ============= ============== ============ =============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE GROWTH
BALANCED INVESTORS
PORTFOLIO PORTFOLIO
-------------- --------------
<C> <C>
$1,648,926,965 $1,520,575,273
1,967,663 3,311,956
579,615 --
6,400,178 18,543,324
205,206,975 186,272,612
410,679 930,656
2,321 1,022,454
12,337,830 6,105,477
-------------- --------------
1,875,832,226 1,736,761,752
-------------- --------------
-- --
-- 137,481
3,489,734 22,010,917
205,206,975 186,272,612
-- --
-- --
-- --
-- 3,662
530,138 671,470
71,207 33,502
80,408 129,236
-------------- --------------
209,378,462 209,258,880
-------------- --------------
$1,666,453,764 $1,527,502,872
============== ==============
$1,450,017,240 $1,326,441,634
============== ==============
$1,455,790,030 $1,313,067,553
289,303 (930,832)
11,473,107 20,195,747
198,901,324 195,170,404
-------------- --------------
$1,666,453,764 $1,527,502,872
============== ==============
$1,666,453,764 $1,509,324,728
============== ==============
94,446,346 80,797,199
============== ==============
$17.64 $18.68
============== ==============
$18,178,144
============== ==============
974,139
============== ==============
$18.66
============== ==============
</TABLE>
2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE ALLIANCE
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE 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 $985,869 and
$4,522,191 from affiliated companies for
the Alliance Common Stock and Alliance
Aggressive Stock Portfolios,
respectively)............................. $ -- $ -- $ -- $ -- $ 2,320,716
Interest................................... 11,986,349 3,030,365 5,675,997 12,137,968 872,942
-------------- -------------- -------------- ------------- ------------
Total income.............................. 11,986,349 3,030,365 5,675,997 12,137,968 3,193,658
-------------- -------------- -------------- ------------- ------------
Expenses (Notes 1, 2 and 3):
Investment advisory fee.................... 791,027 237,084 435,601 694,684 821,329
Custody fees............................... 6,519 7,248 13,452 6,067 7,983
Distribution fees--Class IB................ 13,577 29 -- 6,654 273
Printing and mailing expenses.............. 23,041 4,743 11,595 12,236 14,166
Professional fees.......................... 4,246 927 1,601 2,292 2,780
SEC registration fees...................... 1,299 236 236 473 1,063
Trustees' fees............................. 5,884 1,284 3,218 3,176 3,853
Miscellaneous.............................. 13,099 3,134 5,337 5,553 6,172
-------------- -------------- -------------- ------------- ------------
Total expenses............................ 858,692 254,685 471,040 731,135 857,619
-------------- -------------- -------------- ------------- ------------
NET INVESTMENT INCOME........................ 11,127,657 2,775,680 5,204,957 11,406,833 2,336,039
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $(10,583,087) and
$(611,176) from affiliated companies for
the Alliance Common Stock and Alliance
Aggressive Stock Portfolios,
respectively)............................. -- 186,846 728,828 9,802,295 14,848,866
On options written......................... -- -- -- -- --
On foreign currency transactions........... -- -- 310,949 -- --
On futures contracts....................... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Realized gain (loss)--net................... -- 186,846 1,039,777 9,802,295 14,848,866
-------------- -------------- -------------- ------------- ------------
Change in Unrealized
Appreciation/Depreciation:
On securities.............................. (52,369) (312,136) (458,923) (144,074) 24,713,276
On options written......................... -- -- -- -- --
On foreign currency transactions........... -- -- (147,760) -- --
On futures contracts....................... -- -- -- -- --
-------------- -------------- -------------- ------------- ------------
Unrealized appreciation/depreciation--net .. (52,369) (312,136) (606,683) (144,074) 24,713,276
-------------- -------------- -------------- ------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET .... (52,369) (125,290) 433,094 9,658,221 39,562,142
-------------- -------------- -------------- ------------- ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .. $11,075,288 $2,650,390 $5,638,051 $21,065,054 $41,898,181
============== ============== ============== ============= ============
</TABLE>
- ------------
* For the period from May 1, 1997 (commencement of operations) to June 30,
1997.
** Net of foreign taxes withheld on dividends of $10,126, $28,751,
$241,734, $816,046, $203,999, $38,698, $342,479 and $335,232 for the
Alliance Growth and Income, Alliance Equity Index, Alliance Common
Stock, Alliance Global, Alliance International, Alliance Conservative
Investors, Alliance Balanced, and Alliance Growth Investors Portfolios,
respectively, and on interest of $1,907, $375 and $323 for the Alliance
Global, Alliance International and Alliance Growth Investors Portfolios,
respectively.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
ALLIANCE ALLIANCE ALLIANCE ALLIANCE AGGRESSIVE SMALL CAP CONSERVATIVE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK GROWTH INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,679,164 $ 32,910,281 $ 6,866,083 $ 1,420,772 $ 9,935,536 $ 2,754 $ 547,057
348,025 7,224,402 3,035,454 705,759 6,413,356 9,302 6,304,736
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
5,027,189 40,134,683 9,901,537 2,126,531 16,348,892 12,056 6,851,793
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
867,156 12,823,939 3,003,722 800,204 9,729,099 8,236 732,623
26,643 69,297 241,567 108,675 30,538 1,750 59,665
-- 26,772 8,377 58 13,440 236 32
22,876 391,272 61,005 9,999 203,661 -- 16,665
4,650 68,613 10,177 1,668 39,446 -- 2,780
1,890 -- 2,716 591 -- -- 236
4,509 95,081 14,103 2,312 54,662 -- 3,853
8,609 180,964 30,660 5,069 118,376 -- 8,906
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
936,333 13,655,938 3,372,327 928,576 10,189,222 10,222 824,760
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
4,090,856 26,478,745 6,529,210 1,197,955 6,159,670 1,834 6,027,033
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
1,809,336 230,862,019 13,750,186 2,474,424 96,880,608 28,972 739,476
-- 69,960,603 -- -- -- -- --
-- (24,448) 10,213,675 1,684,505 -- -- (199,021)
627,975 -- -- -- -- -- --
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
2,437,311 300,798,174 23,963,861 4,158,929 96,880,608 28,972 540,455
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
89,875,423 612,151,542 76,870,399 13,486,294 40,215,336 811,524 10,597,265
-- 10,795,695 -- -- -- -- --
-- (74) 608,428 681,013 -- -- (1,940)
145,125 -- -- -- -- -- --
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
90,020,548 622,947,163 77,478,827 14,167,307 40,215,336 811,524 10,595,325
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
92,457,859 923,745,337 101,442,688 18,326,236 137,095,944 840,496 11,135,780
- -------------- -------------- -------------- --------------- -------------- ------------ --------------
$96,548,715 $950,224,082 $107,971,898 $19,524,191 $143,255,614 $842,330 $17,162,813
============== ============== ============== =============== ============== ============ ==============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE GROWTH
BALANCED INVESTORS
PORTFOLIO PORTFOLIO
-------------- -------------
<C> <C>
$ 4,691,199 $ 5,093,310
25,869,335 14,692,020
-------------- -------------
30,560,534 19,785,330
-------------- -------------
3,013,641 3,585,429
154,360 163,523
-- 10,129
99,227 80,194
15,940 13,379
-- 3,071
22,089 18,540
53,425 68,569
-------------- -------------
3,358,682 3,942,834
-------------- -------------
27,201,852 15,842,496
-------------- -------------
15,003,894 18,881,161
-- --
(434,615) 3,131,802
-- --
-------------- -------------
14,569,279 22,012,963
-------------- -------------
81,503,451 96,851,052
-- --
(11,554) 516,496
-- --
-------------- -------------
81,491,897 97,367,548
-------------- -------------
96,061,176 119,380,511
-------------- -------------
$123,263,028 $135,223,007
============== =============
</TABLE>
4
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE GOVERNMENT
MONEY MARKET PORTFOLIO SECURITIES PORTFOLIO
------------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
--------------- --------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 11,127,657 $ 19,055,993 $ 2,775,680 $ 4,575,583
Realized gain (loss)--net........................... -- -- 186,846 (453,637)
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net........................ (52,369) (7,886) (312,136) (1,025,808)
--------------- --------------- -------------- --------------
Net increase in net assets from operations ......... 11,075,288 19,048,107 2,650,390 3,096,138
--------------- --------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE
1):
Class IA:
Dividends from net investment income............... (10,476,544) (19,050,946) (2,722,846) (4,575,583)
Dividends in excess of net investment income ...... -- (25,232) -- (19,617)
Distributions from realized gains.................. -- -- -- --
Tax return of capital distributions................ -- -- -- --
--------------- --------------- -------------- --------------
Total Class IA dividends and distributions ......... (10,476,544) (19,076,178) (2,722,846) (4,595,200)
--------------- --------------- -------------- --------------
Class IB:
Dividends from net investment income............... (420,310) (5,047) (3,064) --
Dividends in excess of net investment income ...... -- (29,384) -- --
Distributions from realized gains.................. -- -- -- --
Distributions in excess of realized gains ......... -- -- -- --
--------------- --------------- -------------- --------------
Total Class IB dividends and distributions ......... (420,310) (34,431) (3,064) --
--------------- --------------- -------------- --------------
Decrease in net assets from dividends and
distributions...................................... (10,896,854) (19,110,609) (2,725,910) (4,595,200)
--------------- --------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold........................................ 347,932,227 508,537,942 18,798,908 36,879,548
Shares issued in reinvestment of dividends and
distributions..................................... 10,476,544 19,076,178 2,722,846 4,595,200
Shares redeemed.................................... (383,059,145) (450,848,823) (6,929,047) (23,371,086)
--------------- --------------- -------------- --------------
Total Class IA transactions......................... (24,650,374) 76,765,297 14,592,707 18,103,662
--------------- --------------- -------------- --------------
Class IB:
Shares sold........................................ 32,447,678 3,624,653 253,241 --
Shares issued in reinvestment of dividends and
distributions..................................... 420,310 34,431 3,064 --
Shares redeemed.................................... (9,070,895) (446,631) -- --
--------------- --------------- -------------- --------------
Total Class IB transactions......................... 23,797,093 3,212,453 256,305 --
--------------- --------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions................................. (853,281) 79,977,750 14,849,012 18,103,662
--------------- --------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS.................... (674,847) 79,915,248 14,773,492 16,604,600
NET ASSETS, BEGINNING OF PERIOD...................... 466,606,194 386,690,946 88,384,425 71,779,825
--------------- --------------- -------------- --------------
NET ASSETS, END OF PERIOD*........................... $ 465,931,347 $ 466,606,194 $103,157,917 $ 88,384,425
=============== =============== ============== ==============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $273,994 and $43,191 for the Alliance Money Market Portfolio
and $52,930 and $3,160 for the Alliance Intermediate Government
Securities Portfolio and $(118,697) and $(220,079) for the Alliance
Quality Bond Portfolio and $254,275 and $23,927 for the Alliance High
Yield Portfolio and $35,001 and $11,797 for the Alliance Growth and
Income Portfolio and $(16,461) and $(5,276) for the Alliance Equity
Index Portfolio, as of June 30, 1997 and December 31, 1996,
respectively.
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND INCOME
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO PORTFOLIO
- ----------------------------- ----------------------------- -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
- -------------- -------------- -------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ 5,204,957 $ 10,285,868 $ 11,406,833 $ 15,471,581 $ 2,336,039 $ 3,051,998
1,039,777 871,659 9,802,295 12,420,138 14,848,866 12,181,263
(606,683) (1,749,535) (144,074) 3,447,403 24,713,276 16,443,384
- -------------- -------------- -------------- -------------- -------------- --------------
5,638,051 9,407,992 21,065,054 31,339,122 41,898,181 31,676,645
- -------------- -------------- -------------- -------------- -------------- --------------
(5,103,575) (10,285,868) (10,801,263) (15,469,541) (2,305,238) (3,050,479)
-- (326,079) -- (432,568) -- --
-- -- -- (11,348,200) -- (11,682,352)
-- -- -- -- -- --
- -------------- -------------- -------------- -------------- -------------- --------------
(5,103,575) (10,611,947) (10,801,263) (27,250,309) (2,305,238) (14,732,831)
- -------------- -------------- -------------- -------------- -------------- --------------
-- -- (375,222) (2,040) (7,597) --
-- -- -- (15,935) -- --
-- -- -- (908) -- --
-- -- -- (18,516) -- --
- -------------- -------------- -------------- -------------- -------------- --------------
-- -- (375,222) (37,399) (7,597) --
- -------------- -------------- -------------- -------------- -------------- --------------
(5,103,575) (10,611,947) (11,176,485) (27,287,708) (2,312,835) (14,732,831)
- -------------- -------------- -------------- -------------- -------------- --------------
28,757,578 27,205,153 74,134,627 71,897,677 131,282,835 111,512,120
5,103,575 10,611,947 10,801,263 27,250,309 2,305,238 14,732,831
(9,806,395) (39,032,520) (14,811,384) (21,997,075) (7,075,429) (9,161,198)
- -------------- -------------- -------------- -------------- -------------- --------------
24,054,758 (1,215,420) 70,124,506 77,150,911 126,512,644 117,083,753
- -------------- -------------- -------------- -------------- -------------- --------------
-- -- 12,924,957 677,158 2,805,353 --
-- -- 375,222 37,399 7,597 --
-- -- (163,718) -- -- --
- -------------- -------------- -------------- -------------- -------------- --------------
-- -- 13,136,461 714,557 2,812,950 --
- -------------- -------------- -------------- -------------- -------------- --------------
24,054,758 (1,215,420) 83,260,967 77,865,468 129,325,594 117,083,753
- -------------- -------------- -------------- -------------- -------------- --------------
24,589,234 (2,419,375) 93,149,536 81,916,882 168,910,940 134,027,567
155,023,472 157,442,847 200,045,465 118,128,583 232,080,388 98,052,821
- -------------- -------------- -------------- -------------- -------------- --------------
$179,612,706 $155,023,472 $293,195,001 $200,045,465 $400,991,328 $232,080,388
============== ============== ============== ============== ============== ==============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE
EQUITY INDEX PORTFOLIO
- -------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
-------------- --------------
(UNAUDITED)
<C> <C>
$ 4,090,856 $ 5,656,346
2,437,311 15,194,950
90,020,548 41,228,418
-------------- --------------
96,548,715 62,079,714
-------------- --------------
(4,101,946) (5,656,346)
-- (4,427)
-- (15,093,505)
-- (7,525)
-------------- --------------
(4,101,946) (20,761,803)
-------------- --------------
(95) --
-- --
-- --
-- --
-------------- --------------
(95) --
-------------- --------------
(4,102,041) (20,761,803)
-------------- --------------
231,118,692 230,679,439
4,101,946 20,761,803
(40,761,569) (72,295,253)
-------------- --------------
194,459,069 179,145,989
-------------- --------------
61,827 --
95 --
-- --
-------------- --------------
61,922 --
-------------- --------------
194,520,991 179,145,989
-------------- --------------
286,967,665 220,463,900
386,249,181 165,785,281
-------------- --------------
$673,216,846 $386,249,181
============== ==============
</TABLE>
6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK PORTFOLIO GLOBAL PORTFOLIO
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
-------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 26,478,745 $ 48,811,771 $ 6,529,210 $ 10,849,353
Realized gain--net.................................. 300,798,174 587,208,099 23,963,861 44,997,037
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net........................ 622,947,163 636,307,007 77,478,827 60,383,165
-------------- -------------- -------------- -------------
Net increase in net assets from operations ......... 950,224,082 1,272,326,877 107,971,898 116,229,555
-------------- -------------- -------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE
1):
Class IA:
Dividends from net investment income............... (26,458,724) (44,580,327) (6,487,447) (10,849,259)
Dividends in excess of net investment income ...... -- -- -- (4,499,020)
Distributions from realized gains.................. -- (587,198,121) -- (42,474,239)
Distributions in excess of realized gains ......... -- (71,434,343) -- --
Tax return of capital distributions................ -- (988,016) -- (220,411)
-------------- -------------- -------------- -------------
Total Class IA dividends and distributions ......... (26,458,724) (704,200,807) (6,487,447) (58,042,929)
-------------- -------------- -------------- -------------
Class IB:
Dividends from net investment income............... (100,602) (326) (54,458) (94)
Dividends in excess of net investment income ...... -- (4,564) -- (2,076)
Distributions from realized gains.................. -- (9,978) -- (1,502)
Distributions in excess of realized gains ......... -- (62,273) -- (4,502)
Tax return of capital distributions................ -- (108) -- (31)
-------------- -------------- -------------- -------------
Total Class IB dividends and distributions ......... (100,602) (77,249) (54,458) (8,205)
-------------- -------------- -------------- -------------
Decrease in net assets from dividends and
distributions...................................... (26,559,326) (704,278,056) (6,541,905) (58,051,134)
-------------- -------------- -------------- -------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold........................................ 560,935,227 756,034,799 117,465,109 255,537,439
Shares issued in reinvestment of dividends and
distributions..................................... 26,458,724 704,200,807 6,487,447 58,042,929
Shares redeemed.................................... (112,489,070) (282,642,349) (38,597,785) (60,861,388)
-------------- -------------- -------------- -------------
Total Class IA transactions......................... 474,904,881 1,177,593,257 85,354,771 252,718,980
-------------- -------------- -------------- -------------
Class IB:
Shares sold........................................ 52,923,570 1,237,252 12,856,073 285,485
Shares issued in reinvestment of dividends and
distributions..................................... 100,602 77,249 54,458 8,205
Shares redeemed.................................... (57,931) -- (228,291) --
-------------- -------------- -------------- -------------
Total Class IB transactions......................... 52,966,241 1,314,501 12,682,240 293,690
-------------- -------------- -------------- -------------
Net increase (decrease) in net assets derived from
share transactions................................. 527,871,122 1,178,907,758 98,037,011 253,012,670
-------------- -------------- -------------- -------------
INCREASE IN NET ASSETS............................... 1,451,535,878 1,746,956,579 199,467,004 311,191,091
NET ASSETS, BEGINNING OF PERIOD...................... 6,626,633,579 4,879,677,000 997,331,484 686,140,393
-------------- -------------- -------------- -------------
NET ASSETS, END OF PERIOD*........................... $8,078,169,457 $6,626,633,579 $1,196,798,488 $997,331,484
============== ============== ============== =============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $(274,897) and $(194,316) for the Alliance Common Stock
Portfolio and $(3,224,979) and $(3,212,284) for the Alliance Global
Portfolio and $(613,149) and $(614,431) for the Alliance International
Portfolio and $(230,816) and $(58,479) for the Alliance Aggressive Stock
Portfolio and $105,039 and $9,815 for the Alliance Conservative
Investors Portfolio, as of June 30, 1997 and December 31, 1996,
respectively.
** Commencement of Operations.
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE SMALL CAP GROWTH
INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO PORTFOLIO
- ----------------------------- ----------------------------- ----------------
SIX MONTHS SIX MONTHS MAY 1, 1997**
ENDED YEAR ENDED ENDED YEAR ENDED TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1996 1997 1996 1997
- -------------- -------------- -------------- -------------- ----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
$ 1,197,955 $ 1,072,074 $ 6,159,670 $ 8,075,002 $ 1,834
4,158,929 3,051,749 96,880,608 651,846,275 28,972
14,167,307 4,245,403 40,215,336 (19,577,800) 811,524
- -------------- -------------- -------------- -------------- ----------------
19,524,191 8,369,226 143,255,614 640,343,477 842,330
- -------------- -------------- -------------- -------------- ----------------
(1,195,407) (1,072,074) (6,323,032) (8,075,028) (1,621)
-- (972,982) -- (50,994) --
-- (2,651,391) -- (651,842,635) --
-- -- -- (1,362,771) --
-- -- -- -- --
- -------------- -------------- -------------- -------------- ----------------
(1,195,407) (4,696,447) (6,323,032) (661,331,428) (1,621)
- -------------- -------------- -------------- -------------- ----------------
(1,266) -- (8,975) -- (213)
-- -- -- (452) --
-- -- -- (3,630) --
-- -- -- (32,780) --
-- -- -- -- --
- -------------- -------------- -------------- -------------- ----------------
(1,266) -- (8,975) (36,862) (213)
- -------------- -------------- -------------- -------------- ----------------
(1,196,673) (4,696,447) (6,332,007) (661,368,290) (1,834)
- -------------- -------------- -------------- -------------- ----------------
79,917,865 141,011,557 630,710,180 1,093,061,087 10,110,188
1,195,407 4,696,447 6,323,032 661,331,428 1,621
(31,799,456) (26,157,811) (388,217,125) (568,654,477) (1,125,632)
- -------------- -------------- -------------- -------------- ----------------
49,313,816 119,550,193 248,816,087 1,185,738,038 8,986,177
- -------------- -------------- -------------- -------------- ----------------
395,023 -- 23,269,993 604,481 2,421,422
1,266 -- 8,975 36,862 213
-- -- (161,618) -- (12,312)
- -------------- -------------- -------------- -------------- ----------------
396,289 -- 23,117,350 641,343 2,409,323
- -------------- -------------- -------------- -------------- ----------------
49,710,105 119,550,193 271,933,437 1,186,379,381 11,395,500
- -------------- -------------- -------------- -------------- ----------------
68,037,623 123,222,972 408,857,044 1,165,354,568 12,235,996
151,906,835 28,683,863 3,865,869,417 2,700,514,849 --
- -------------- -------------- -------------- -------------- ----------------
$219,944,458 $151,906,835 $4,274,726,461 $3,865,869,417 $12,235,996
============== ============== ============== ============== ================
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE
CONSERVATIVE INVESTORS
PORTFOLIO
- --------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1997 1996
-------------- --------------
(UNAUDITED)
<C> <C>
$ 6,027,033 $ 12,360,795
540,455 6,689,821
10,595,325 (4,721,182)
-------------- --------------
17,162,813 14,329,434
-------------- --------------
(5,929,728) (12,360,795)
-- (44,557)
-- (6,689,821)
-- (396,608)
-- --
-------------- --------------
(5,929,728) (19,491,781)
-------------- --------------
(2,081) --
-- --
-- --
-- --
-- --
-------------- --------------
(2,081) --
-------------- --------------
(5,931,809) (19,491,781)
-------------- --------------
14,363,491 50,046,532
5,929,728 19,491,781
(24,308,252) (34,074,560)
-------------- --------------
(4,015,033) 35,463,753
-------------- --------------
214,487 --
2,081 --
-- --
-------------- --------------
216,568 --
-------------- --------------
(3,798,465) 35,463,753
-------------- --------------
7,432,539 30,301,406
282,402,401 252,100,995
-------------- --------------
$289,834,940 $282,402,401
============== ==============
</TABLE>
8
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE GROWTH INVESTORS
BALANCED PORTFOLIO PORTFOLIO
----------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
-------------- -------------- -------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income............................... $ 27,201,852 $ 49,871,322 $ 15,842,496 $ 25,706,114
Realized gain--net.................................. 14,569,279 128,392,470 22,012,963 131,200,343
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net........................ 81,491,897 (3,420,061) 97,367,548 (20,549,143)
-------------- -------------- -------------- ---------------
Net increase in net assets from operations ......... 123,263,028 174,843,731 135,223,007 136,357,314
-------------- -------------- -------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE
1):
Class IA:
Dividends from net investment income............... (26,721,849) (49,871,322) (15,510,310) (25,705,569)
Dividends in excess of net investment income ...... -- (241,952) -- (2,082,361)
Distributions from realized gains.................. -- (128,392,470) -- (131,199,726)
Distributions in excess of realized gains ......... -- (2,491,886) -- (570,518)
-------------- -------------- -------------- ---------------
Total Class IA dividends and distributions ......... (26,721,849) (180,997,630) (15,510,310) (159,558,174)
-------------- -------------- -------------- ---------------
Class IB:
Dividends from net investment income............... -- -- (127,072) (545)
Dividends in excess of net investment income ...... -- -- -- (2,449)
Distributions from realized gains.................. -- -- -- (617)
Distributions in excess of realized gains ......... -- -- -- (6,239)
-------------- -------------- -------------- ---------------
Total Class IB dividends and distributions ......... -- -- (127,072) (9,850)
-------------- -------------- -------------- ---------------
Decrease in net assets from dividends and
distributions...................................... (26,721,849) (180,997,630) (15,637,382) (159,568,024)
-------------- -------------- -------------- ---------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold........................................ 31,134,396 64,030,181 105,230,500 297,495,728
Shares issued in reinvestment of dividends and
distributions..................................... 26,721,849 180,997,630 15,510,310 159,558,174
Shares redeemed.................................... (125,799,164) (124,160,136) (31,457,687) (28,339,916)
-------------- -------------- -------------- ---------------
Total Class IA transactions......................... (67,942,919) 120,867,675 89,283,123 428,713,986
-------------- -------------- -------------- ---------------
Class IB:
Shares sold........................................ -- -- 16,529,778 468,087
Shares issued in reinvestment of dividends and
distributions..................................... -- -- 127,072 9,850
Shares redeemed.................................... -- -- (137,709) (90)
-------------- -------------- -------------- ---------------
Total Class IB transactions......................... -- -- 16,519,141 477,847
-------------- -------------- -------------- ---------------
Net increase (decrease) in net assets derived from
share transactions................................. (67,942,919) 120,867,675 105,802,264 429,191,833
-------------- -------------- -------------- ---------------
INCREASE IN NET ASSETS............................... 28,598,260 114,713,776 225,387,889 405,981,123
NET ASSETS, BEGINNING OF PERIOD...................... 1,637,855,504 1,523,141,728 1,302,114,983 896,133,860
-------------- -------------- -------------- ---------------
NET ASSETS, END OF PERIOD*........................... $1,666,453,764 $1,637,855,504 $1,527,502,872 $1,302,114,983
============== ============== ============== ===============
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $289,303 and $(190,700) for the Alliance Balanced Portfolio
and $(930,832) and $(1,135,946) for the Alliance Growth Investors
Portfolio, as of June 30, 1997 and December 31, 1996, respectively.
See Notes to Financial Statements.
9
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES (0.4%)
Bank of America
Due 11/07/97........................... $ 2,000,000 $ 1,998,425 5.77%
--------------
CERTIFICATES OF DEPOSIT
Abbey National North America Corp.
Due 11/26/97........................... 10,000,000 9,988,935 5.76
Commerzbank U.S. Finance
Due 11/18/97........................... 5,000,000 4,995,365 5.77
Credit Swiss
Due 03/16/98........................... 6,000,000 6,000,735 5.88
Dresdner Bank
Due 07/07/97........................... 3,750,000 3,750,036 5.68
Mitsubishi Bank Ltd.-N.Y.
Due 08/06/97........................... 20,000,000 20,001,550 5.95
Morgan Guaranty Trust Co.:
Due 07/07/97........................... 7,000,000 6,999,940 5.68
Due 09/17/97........................... 2,000,000 2,000,025 5.73
Due 03/19/98........................... 10,000,000 10,014,139 5.74
Norinchuckin Bank Ltd.:
Due 09/04/97........................... 10,000,000 10,004,607 5.74
Due 09/08/97........................... 10,000,000 10,004,887 5.74
Sumitomo Bank Ltd.
Due 07/31/97........................... 15,000,000 14,999,740 5.96
Swiss Bank Corp.
Due 01/30/98........................... 10,000,000 9,993,129 5.90
--------------
TOTAL CERTIFICATES OF DEPOSIT
(23.3%)................................ 108,753,088
--------------
COMMERCIAL PAPER
ASCC Commercial Paper
Due 08/19/97........................... 1,400,000 1,389,481 5.78
Asset Backed Capital
Due 12/08/97........................... 10,000,000 9,754,667 5.83
Associates Corp. of North America
Due 07/01/97........................... 2,500,000 2,500,000 6.33
Atlas Funding Corp.:
Due 07/09/97........................... 1,131,000 1,129,613 5.76
Due 07/15/97........................... 6,200,000 6,186,691 5.76
Due 07/21/97........................... 6,700,000 6,679,453 5.77
Bankers Trust Securities
Due 07/01/97........................... 22,800,000 22,800,000 6.27
Berliner Handels Und Frank
Due 10/01/97........................... 5,000,000 4,929,467 5.80
BHF Delaware Corp.
Due 09/08/97........................... 5,000,000 4,947,100 5.79
Centauri Corp.
Due 09/24/97........................... 6,800,000 6,711,373 5.80
Dakota Funding, Inc.
Due 07/01/97........................... 22,800,000 22,800,000 6.27
Delaware Funding Corp.
Due 09/30/97........................... 9,200,000 9,071,629 5.80
Dresdner U.S. Finance, Inc.
Due 07/01/97........................... 19,000,000 19,000,000 6.41
Eureka Corp.
Due 09/25/97........................... 4,200,000 4,144,616 5.80
Goldman Sachs & Co.
Due 07/09/97........................... 18,600,000 18,577,060 5.79
</TABLE>
10
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Greenwich Asset Funding, Inc.
Due 07/01/97.......................................... $14,700,000 $ 14,700,000 6.27%
International Securitization
Due 07/21/97.......................................... 8,511,000 8,484,900 5.77
Merrill Lynch & Co., Inc.
Due 12/15/97.......................................... 5,000,000 4,871,967 5.83
Preferred Receivables Funding:
Due 07/08/97.......................................... 10,025,000 10,014,181 5.79
Due 09/25/97.......................................... 10,000,000 9,867,417 5.83
R.O.S.E. Funding Ltd.:
Due 07/29/97.......................................... 10,300,000 10,255,779 5.77
Due 09/26/97.......................................... 11,000,000 10,853,260 5.80
Sigma Finance Corp.:
Due 07/15/97.......................................... 2,700,000 2,694,204 5.76
Due 07/25/97.......................................... 7,100,000 7,073,730 5.80
Due 10/01/97.......................................... 3,500,000 3,450,627 5.80
Due 10/06/97.......................................... 3,000,000 2,955,380 5.80
S.P.A.R.C.:
Due 07/03/97.......................................... 11,000,000 10,996,607 5.79
Due 07/17/97.......................................... 2,000,000 1,995,093 5.76
Three River Funding:
Due 07/15/97.......................................... 7,000,000 6,984,973 5.76
Due 07/22/97.......................................... 4,570,000 4,555,285 5.77
Due 07/24/97.......................................... 5,235,000 5,216,538 5.77
Windmill Funding Corp.
Due 09/25/97.......................................... 20,415,000 20,145,794 5.80
Wood Street Funding
Due 07/22/97.......................................... 4,420,000 4,405,768 5.77
-------------
TOTAL COMMERCIAL PAPER (60.1%)....................... 280,142,653
-------------
CORPORATE NOTE (3.2%)
Beta Finance, Inc.
Due 01/30/98.......................................... 15,000,000 15,012,369 5.56
-------------
U.S. GOVERNMENT AGENCIES (7.5%)
Federal Farm Credit Bank
Due 06/02/98.......................................... 15,000,000 15,000,000 5.20
Student Loan Marketing Association
Due 10/14/97.......................................... 20,000,000 20,000,000 5.20
-------------
TOTAL U.S. GOVERNMENT AGENCIES (7.5%)................ 35,000,000
-------------
VARIABLE RATE LIBOR (3.3%)
Merrill Lynch & Co., Inc.
Due 12/24/97.......................................... 15,000,000 14,978,681 5.95
-------------
TOTAL INVESTMENTS IN SHORT-TERM DEBT SECURITIES
(97.8%)
(Amortized Cost $455,780,064)......................... 455,885,216
OTHER ASSETS LESS LIABILITIES (2.2%)................... 10,046,131
-------------
NET ASSETS (100.0%).................................... $465,931,347
=============
</TABLE>
- ------------
* Based on market values at the close of business on June 30, 1997.
See Notes to Financial Statements.
11
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
COLLATERALIZED MORTGAGE
OBLIGATIONS (4.1%)
Federal National Mortgage
Association
6.164%, 03/01/20............... $ 4,261,974 $ 4,249,998
-------------
MORTGAGE RELATED (22.0%)
Federal Home Loan Mortgage
Corp:
7.5%, 07/01/11................. 1,059,660 1,074,895
7.5%, 08/01/11................. 157,299 159,561
7.5%, 10/01/11................. 1,058,679 1,073,899
7.5%, 11/01/11................. 1,457,270 1,478,220
7.5%, 05/01/12................. 982,589 996,715
7.5%, 06/01/12................. 1,652,500 1,676,255
9.5%, 01/01/20................. 4,916 5,265
Federal National Mortgage
Association:
7.583%, 06/01/25 (a)........... 3,801,820 3,858,848
7.602%, 06/01/25 (a)........... 3,956,098 4,018,526
6.087% COFI, 08/01/29 (a) ..... 6,387,354 6,331,466
Government National Mortgage
Association
7.0% TBA, 06/20/27............. 2,000,000 1,963,130
-------------
22,636,780
-------------
U.S. GOVERNMENT & AGENCIES (70.3%)
Federal Home Loan Bank
5.5%, 01/10/01................. 4,500,000 4,368,960
Resolution Funding S.T.R.I.P.S.
Zero Coupon Deb., 04/15/99 .... $ 5,000,000 $ 4,492,550
Tennessee Valley Authority
6.5%, 08/20/01................. 5,400,000 5,393,250
U.S. Treasury:
5.75% Note, 12/31/98........... 1,200,000 1,196,250
6.0% Note, 08/15/99............ 14,000,000 13,965,000
6.375% Note, 05/15/00.......... 2,000,000 2,007,500
6.125% Note, 12/31/01.......... 11,700,000 11,586,662
6.25% Note, 02/28/02........... 2,400,000 2,386,500
6.625% Note, 03/31/02.......... 1,800,000 1,816,312
6.625% Note, 04/30/02.......... 7,000,000 7,063,441
6.25% Note, 06/30/02........... 10,300,000 10,238,818
11.875% Bond, 11/15/03......... 6,300,000 8,054,159
-------------
72,569,402
-------------
TOTAL LONG-TERM DEBT SECURITIES (96.4%)
(Amortized Cost $99,147,147) .. 99,456,180
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (3.2%)
Federal Home Loan Bank
5.3%, due 07/01/97............. 3,300,000 3,300,000
-------------
TOTAL SHORT-TERM DEBT SECURITIES (3.2%)
(Amortized Cost $3,300,000) ... 3,300,000
-------------
TOTAL INVESTMENTS (99.6%)
(Amortized Cost $102,447,147) . 102,756,180
OTHER ASSETS LESS LIABILITIES (0.4%) 401,737
-------------
NET ASSETS (100.0%)............. $103,157,917
=============
</TABLE>
- ------------
(a) Adjustable rate mortgage; stated interest rate in effect at June 30,
1997.
See Notes to Financial Statements.
12
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (3.4%)
Reliance Industries Ltd.
10.375%, 06/24/16.............. $ 5,500,000 $ 6,162,750
-------------
METALS & MINING (3.4%)
Southern Peru Ltd.
7.9%, 05/30/07+................ 6,000,000 6,099,600
-------------
TOTAL BASIC MATERIALS (6.8%) .. 12,262,350
-------------
BUSINESS SERVICES (3.3%)
PRINTING, PUBLISHING &
BROADCASTING
Time Warner Entertainment Co.
8.375%, 03/15/23............... 5,700,000 5,860,740
-------------
CREDIT SENSITIVE
BANKS (7.4%)
Dao Heng Bank Ltd.
7.75%, 01/24/07+............... 3,000,000 3,008,070
Dime Capital Trust I
9.33%, 05/06/27................ 5,000,000 5,206,950
St. George Funding Co.
8.485%, 06/30/17(a)+ .......... 5,000,000 5,015,000
-------------
13,230,020
-------------
FOREIGN GOVERNMENT (3.1%)
Ministry Finance of Russia
10.0%, 06/26/07+............... 5,500,000 5,480,750
-------------
MORTGAGE RELATED (22.4%)
Federal Home Loan
Mortgage Corp.
7.0%, 09/01/11................. 7,404,382 7,390,499
Federal National Mortgage
Association:
6.5%, 05/01/11................. 12,437,259 12,180,741
6.5%, 08/01/11................. 2,034,227 1,992,272
7.0%, 05/01/26................. 8,064,528 7,903,262
Government National Mortgage
Association:
7.5%, 01/15/27................. 3,984,214 3,994,187
7.5%, 03/15/27................. 5,039,700 5,052,314
7.5%, 04/15/27................. 1,691,501 1,695,735
-------------
40,209,010
-------------
<PAGE>
UTILITY--ELECTRIC (3.1%)
Empresa Nacional de
Electricidad S.A.
7.875%, 02/01/27............... $ 5,500,000 $ 5,546,839
-------------
UTILITY--GAS (2.9%)
RAS Laffan Liquid Natural Gas
8.294%, 09/15/14+.............. 5,000,000 5,246,500
-------------
U.S. GOVERNMENT (43.2%)
U.S. Treasury:
6.125% Note, 08/31/98.......... 36,500,000 36,591,250
6.25% Note, 04/30/01........... 8,350,000 8,329,125
6.5% Note, 05/31/02............ 16,850,000 16,913,188
6.875% Note, 05/15/06.......... 11,000,000 11,226,875
6.625% Bond, 02/15/27.......... 4,875,000 4,768,359
-------------
77,828,797
-------------
TOTAL CREDIT SENSITIVE
(82.1%)........................ 147,541,916
-------------
TOTAL LONG-TERM DEBT SECURITIES (92.2%)
(Amortized Cost $163,847,074) . 165,665,006
-------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank:
5.3%, due 07/01/97............. 3,900,000 3,900,000
5.39%, due 07/03/97............ 7,700,000 7,697,694
-------------
TOTAL U.S. GOVERNMENT AGENCIES (6.5%) 11,597,694
-------------
TOTAL SHORT-TERM DEBT SECURITIES (6.5%)
(Amortized Cost $11,597,694) .. 11,597,694
-------------
TOTAL INVESTMENTS (98.7%)
(Amortized Cost $175,444,768) . 177,262,700
OTHER ASSETS
LESS LIABILITIES (1.3%)........ 2,350,006
-------------
NET ASSETS (100.0%)............. $179,612,706
=============
</TABLE>
- ------------
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1997, these securities amounted to $24,849,920 or
13.8% of net assets.
(a) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1997.
See Notes to Financial Statements.
13
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND WARRANTS:
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING &
BROADCASTING
Pegasus Communications Corp.
(Class A)*..................... 3,384 $ 36,801
-------------
CAPITAL GOODS (0.0%)
BUILDING & CONSTRUCTION
Capital Pacific Holdings,
Inc.--
Warrants*...................... 11,850 17,775
-------------
CONSUMER CYCLICALS
RETAIL--GENERAL (0.0%)
Eye Care Centers of America--
Warrants *..................... 5,000 20,000
Florists Transworld Corp.
(Class B)*+.................... 18,750 18,750
-------------
TOTAL CONSUMER CYCLICALS (0.0%) 38,750
-------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.0%)
Wright Medical Technology,
Inc.--Warrants*................ 618 80,340
-------------
SOAPS & TOILETRIES (0.1%)
Renaissance
Cosmetics--Warrants*........... 2,000 100,000
-------------
TOTAL CONSUMER NONCYCLICALS (0.1%) 180,340
-------------
TOTAL COMMON STOCKS
AND WARRANTS (0.1%)
(Cost $157,935)................ 273,666
-------------
PRINCIPAL
AMOUNT
-------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (7.0%)
Harris Chemical North America,
Inc.
10.75%, 10/15/03............... $6,500,000 6,695,000
Kaiser Aluminum & Chemical
10.875%, 10/15/06+............. 4,000,000 4,280,000
Trans Resources, Inc.
11.875% Sr. Sub. Note
Series B, 07/01/02............. 5,500,000 5,665,000
VICAP SA
11.375%, 05/15/07.............. 3,750,000 3,923,437
-------------
20,563,437
-------------
METALS & MINING (3.9%)
Great Lakes Carbon Corp.
10.0%, 01/01/06................ 2,500,000 2,637,500
Maxxam Group Holdings, Inc.
12.0%, 08/01/01+............... 3,395,000 3,522,313
Westmin Resources Ltd.
11.0%, 03/15/07................ 5,000,000 5,225,000
-------------
11,384,813
-------------
PAPER (4.3%)
FSW International
12.5%, 11/10/06+............... 7,000,000 7,227,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
Stone Container Corp.
12.25%, 04/01/02................ $5,250,000 $ 5,355,000
--------------
12,582,500
--------------
TOTAL BASIC MATERIALS (15.2%) .. 44,530,750
--------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (4.6%)
Pen Tab Industries, Inc.
10.875%, 02/01/07+.............. 5,500,000 5,568,750
Telemundo Group, Inc.
7.0%, 02/15/06 (a).............. 8,235,000 7,905,600
--------------
13,474,350
--------------
TRUCKING, SHIPPING (1.8%)
Equimar Shipholdings Ltd.
9.875%, 07/01/07................ 5,500,000 5,390,000
--------------
TOTAL BUSINESS SERVICES (6.4%) . 18,864,350
--------------
CAPITAL GOODS
BUILDING & CONSTRUCTION (2.8%)
MMI Products, Inc.
11.25%, 04/15/07................ 4,000,000 4,240,000
Williams Scotsman, Inc.
9.875%, 06/01/07................ 4,000,000 4,040,000
--------------
8,280,000
--------------
MACHINERY (1.6%)
Roller Bearing Co. of America
9.625%, 06/15/07................ 4,500,000 4,545,000
--------------
TOTAL CAPITAL GOODS (4.4%) ..... 12,825,000
--------------
CONSUMER CYCLICALS
LEISURE RELATED (6.0%)
Coleman Escrow Corp.
Zero Coupon, 05/15/01........... 8,000,000 5,100,000
Hedstrom Corp.
10.0%, 06/01/07................. 5,000,000 5,075,000
Riddell Sports, Inc.
10.5%, 07/15/07................. 3,000,000 3,075,000
Waterford Gaming LLC
12.75%, 11/15/03+............... 4,000,000 4,480,000
--------------
17,730,000
--------------
RETAIL--GENERAL (1.6%)
Pantry, Inc.
12.0%, 11/15/00................. 4,500,000 4,590,000
--------------
TOTAL CONSUMER CYCLICALS
(7.6%).......................... 22,320,000
--------------
CONSUMER NONCYCLICALS
FOODS (2.7%)
Specialty Foods Corp.
11.125%, 10/01/02............... 8,000,000 7,920,000
--------------
CONTAINERS (2.2%)
Anchor Glass
11.25%, 04/01/05................ 4,000,000 4,290,000
MVE, Inc.
12.5%, 02/15/02................. 2,000,000 2,050,000
--------------
6,340,000
--------------
14
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
RETAIL--FOOD (5.3%)
Digiorgio Corp.
10.0%, 06/15/07................. $ 7,500,000 $ 7,293,750
Shoppers Food Warehouse
9.75%, 06/15/04................. 8,500,000 8,478,750
--------------
15,772,500
--------------
TOTAL CONSUMER NONCYCLICALS (10.2%) 30,032,500
--------------
CREDIT SENSITIVE
FINANCIAL SERVICES (2.0%)
Cityscape Financial Corp
12.75%, 06/01/04................ 6,000,000 5,940,000
--------------
FOREIGN GOVERNMENT (1.8%)
Republic of Panama
6.5625%, 07/17/16 (b)........... 6,084,360 5,350,434
--------------
UTILITY--ELECTRIC (1.1%).........
AES China Generating Co. ........
10.125%, 12/15/06............... 3,000,000 3,172,500
--------------
TOTAL CREDIT SENSITIVE (4.9%) .. 14,462,934
--------------
ENERGY
OIL--DOMESTIC (7.3%)
DI Industries, Inc.
8.875%, 07/01/07................ 6,000,000 5,895,000
Transamerican Energy:
11.5%, 06/15/02................. 4,000,000 3,870,000
Zero Coupon, 06/15/02 (c) ...... 7,500,000 5,418,750
TransTexas Gas Corp.
13.75%, 12/31/01................ 5,829,000 6,237,030
--------------
21,420,780
--------------
OIL--SUPPLIES & CONSTRUCTION (1.2%)
Deeptech International, Inc.
12.0%, 12/15/00................. 3,500,000 3,640,000
--------------
RAILROADS (1.0%)
TFM SA de CV
Zero Coupon, 06/15/09 (c) ...... 5,000,000 2,887,500
--------------
TOTAL ENERGY (9.5%)............. 27,948,280
--------------
TECHNOLOGY
ELECTRONICS (8.0%)
Sullivan Graphic, Inc.
12.75%, 08/01/05................ 5,000,000 5,150,000
Therma-Wave, Inc.
10.625%, 05/15/04............... 4,750,000 5,035,000
Unisys Corp.
11.75%, 10/15/04................ 7,000,000 7,647,500
Viasystems, Inc.
9.75%, 06/01/07................. 5,500,000 5,582,500
--------------
23,415,000
--------------
<PAGE>
TELECOMMUNICATIONS (22.0%)
American Telecasting, Inc.
Zero Coupon, 08/15/05 (c) ...... $ 5,000,000 $ 1,400,000
Celestica International, Inc.
10.5%, 12/31/06+................ 2,500,000 2,687,500
Econophone, Inc.
13.5%, 07/15/07................. 3,750,000 3,806,250
Globalstar L.P.
11.25%, 06/15/04+............... 9,000,000 8,370,000
GST Equipment Funding
13.25%, 05/01/07................ 6,000,000 6,420,000
Innova S de R.L.
12.875%, 04/01/07............... 4,000,000 4,170,000
Intercel, Inc.
11.125%, 06/15/07............... 5,000,000 5,050,000
McCaw International Ltd.
Zero Coupon, 04/15/07 (c) ...... 4,000,000 1,940,000
Optel, Inc.
13.0%, 02/15/05+................ 10,000,000 9,700,000
Orion Network Systems, Inc.
11.25%, 01/15/07................ 4,000,000 4,100,000
PTC International Finance B.V.
Zero Coupon, 07/01/07 (c) ...... 9,000,000 5,467,500
Radio One, Inc.
7.0%, 05/15/04 (a).............. 4,000,000 3,510,000
Tekni-Plex, Inc.
11.25%, 04/01/07................ 2,500,000 2,700,000
Winstar Equipment Corp.
12.5%, 03/15/04................. 5,000,000 4,850,000
--------------
64,171,250
--------------
TOTAL TECHNOLOGY (30.0%)........ 87,586,250
--------------
TOTAL LONG-TERM DEBT SECURITIES (88.2%)
(Amortized Cost $253,287,357) .. 258,570,064
--------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank:
5.3%, due 07/01/97.............. 7,200,000 7,200,000
5.39%, due 07/03/97............. 400,000 399,880
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(2.6%).......................... 7,599,880
--------------
TOTAL SHORT-TERM DEBT SECURITIES (2.6%)
(Amortized Cost $7,599,880) .... 7,599,880
--------------
TOTAL INVESTMENTS (90.9%)
(Cost/Amortized Cost $261,045,172) 266,443,610
OTHER ASSETS
LESS LIABILITIES (9.1%)......... 26,751,391
--------------
NET ASSETS (100.0%).............. $293,195,001
==============
</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. At June 30, 1997, these securities amounted to $45,854,813 or
15.6% of net assets.
(a) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1997.
(b) Coupon will fluctuate based upon an interest rate index. Stated
interest rate in effect at June 30, 1997.
(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.
15
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.3%)
Dow Chemical Co. .................. 60,000 $ 5,227,500
-------------
CHEMICALS--SPECIALTY (1.0%)
Morton International, Inc. ........ 133,000 4,014,938
-------------
TOTAL BASIC MATERIALS (2.3%) ..... 9,242,438
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
United Waste Systems, Inc.*........ 22,600 926,600
USA Waste Services, Inc.*.......... 55,000 2,124,375
-------------
3,050,975
-------------
PRINTING, PUBLISHING &
BROADCASTING (3.4%)
Comcast Corp. (Class A) SPL........ 121,000 2,586,375
Liberty Media Group
(Class A)*........................ 124,000 2,945,000
New York Times Co.................. 41,000 2,029,500
Reuters Holdings PLC (ADR)......... 43,000 2,709,000
Time Warner, Inc................... 54,500 2,629,625
Viacom, Inc. (Class B)*............ 22,400 672,000
-------------
13,571,500
-------------
TRUCKING, SHIPPING (0.2%)
Xtra Corp.......................... 20,400 896,325
-------------
TOTAL BUSINESS SERVICES (4.4%) ... 17,518,800
-------------
CAPITAL GOODS
AEROSPACE (0.8%)
General Dynamics Corp.............. 42,000 3,150,000
-------------
ELECTRICAL EQUIPMENT (1.5%)
General Electric Co................ 90,000 5,883,750
-------------
MACHINERY (2.6%)
Allied Signal, Inc................. 36,000 3,024,000
Cooper Industries, Inc............. 55,000 2,736,250
Fluor Corp......................... 59,000 3,256,063
Solectron Corp.*................... 24,600 1,723,538
-------------
10,739,851
-------------
TOTAL CAPITAL GOODS (4.9%)........ 19,773,601
-------------
CONSUMER CYCLICALS
AIRLINES (0.8%)
Delta Air Lines, Inc............... 39,200 3,214,400
-------------
APPAREL, TEXTILE (1.2%)
Reebok International Ltd........... 100,400 4,693,700
-------------
AUTOS & TRUCKS (1.2%)
Chrysler Corp. .................... 100,500 3,297,656
Harley-Davidson, Inc. ............. 35,000 1,677,813
-------------
4,975,469
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.9%)
Sunbeam Corp....................... 91,500 3,454,125
-------------
RETAIL--GENERAL (3.4%)
Dayton Hudson Corp................. 92,000 4,893,250
Federated Department Stores,
Inc.*............................. 94,600 3,287,350
Sears, Roebuck & Co................ 103,800 5,579,250
-------------
13,759,850
-------------
TOTAL CONSUMER CYCLICALS (7.5%) 30,097,544
-------------
<PAGE>
CONSUMER NONCYCLICALS
BEVERAGES (1.7%)
Anheuser Busch, Inc................ 160,000 $ 6,710,000
-------------
DRUGS (5.4%)
Centocor, Inc.*.................... 101,000 3,137,313
Merck & Co., Inc................... 92,000 9,522,010
Schering Plough Corp............... 189,000 9,048,375
-------------
21,707,698
-------------
FOODS (4.1%)
Campbell Soup Co................... 126,000 6,300,000
General Mills, Inc................. 51,000 3,321,375
Heinz (H.J.) Co.................... 93,000 4,289,625
Whitman Corp....................... 109,000 2,616,000
-------------
16,527,000
-------------
HOSPITAL SUPPLIES & SERVICES (4.7%)
Boston Scientific Corp.* .......... 54,000 3,317,625
Columbia/HCA Healthcare Corp. ..... 156,000 6,132,750
Healthsouth Corp.* ................ 12,257 305,659
PacifiCare Health Systems, Inc.
(Class B)*........................ 115,000 7,345,625
Saint Jude Medical, Inc.* ......... 42,000 1,638,000
-------------
18,739,659
-------------
RETAIL--FOOD (0.8%)
Kroger Co.*........................ 110,000 3,190,000
-------------
TOBACCO (5.0%)
Philip Morris Cos., Inc. .......... 238,500 10,583,438
RJR Nabisco Holdings Corp.......... 288,400 9,517,200
-------------
20,100,638
-------------
TOTAL CONSUMER NONCYCLICALS (21.7%) 86,974,995
-------------
CREDIT SENSITIVE
BANKS (6.0%)
Chase Manhattan Corp............... 113,200 10,987,475
First Bank Systems................. 39,500 3,372,313
First Chicago NBD Corp............. 12,825 775,913
First Union Corp................... 98,500 9,111,250
-------------
24,246,951
-------------
FINANCIAL SERVICES (4.2%)
Bear Stearns Cos., Inc............. 48,000 1,641,000
MBNA Corp.......................... 83,000 3,039,875
Morgan Stanley, Dean Witter,
Discover & Co..................... 185,000 7,966,563
PMI Group, Inc..................... 66,600 4,154,175
-------------
16,801,613
-------------
INSURANCE (3.5%)
Exel Ltd........................... 20,500 1,081,375
General Re Corp.................... 26,400 4,804,800
Hartford Financial Services Group,
Inc............................... 56,500 4,675,375
PennCorp Financial Group, Inc. .... 93,000 3,580,500
-------------
14,142,050
-------------
REAL ESTATE (0.3%)
Security Capital Industrial Trust . 54,000 1,161,000
-------------
16
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------
UTILITY--ELECTRIC (1.3%)
FPL Group, Inc..................... 43,000 $ 1,980,688
NIPSCO Industries, Inc............. 56,000 2,313,500
Pinnacle West Capital Corp......... 36,000 1,082,250
-------------
5,376,438
-------------
UTILITY--TELEPHONE (2.0%)
AT&T Corp.......................... 117,300 4,112,831
Teleport Communications Group,
Inc. (Class A)*................... 99,700 3,402,263
-------------
7,515,094
-------------
TOTAL CREDIT SENSITIVE (17.3%) ... 69,243,146
-------------
ENERGY
OIL--DOMESTIC (3.2%)
Apache Corp........................ 102,000 3,315,000
Murphy Oil Corp.................... 64,000 3,120,000
USX-Marathon Group................. 225,000 6,496,875
-------------
12,931,875
-------------
OIL--INTERNATIONAL (4.8%)
Mobil Corp......................... 88,600 6,190,925
Texaco, Inc. ...................... 120,200 13,071,750
-------------
19,262,675
-------------
OIL--SUPPLIES & CONSTRUCTION (1.6%)
BJ Services Co.*................... 29,600 1,587,300
Baker Hughes, Inc.................. 4,100 158,619
Halliburton Co..................... 18,900 1,497,825
Transocean Offshore, Inc........... 44,900 3,260,863
-------------
6,504,607
-------------
RAILROADS (1.0%)
Canadian Pacific Ltd............... 39,000 1,109,063
Union Pacific Corp................. 39,000 2,749,500
-------------
3,858,563
-------------
TOTAL ENERGY (10.6%).............. 42,557,720
-------------
TECHNOLOGY
ELECTRONICS (8.4%)
Applied Materials, Inc.*........... 53,000 3,753,063
Atmel Corp.*....................... 129,800 3,634,400
Cisco Systems, Inc.*............... 126,500 8,491,313
Cypress Semiconductor Corp.* ...... 14,269 206,901
Intel Corp......................... 35,000 4,963,438
LSI Logic Corp.*................... 35,510 1,136,320
Micron Technology, Inc.*........... 31,000 1,238,063
National Semiconductor Corp.* ..... 202,000 6,186,250
Seagate Technology, Inc.*.......... 119,000 4,187,313
-------------
33,797,061
-------------
OFFICE EQUIPMENT (1.6%)
Compaq Computer Corp.*............. 65,500 6,500,875
-------------
OFFICE EQUIPMENT SERVICES (0.6%)
Electronic Data Systems Corp. ..... 63,000 2,583,000
-------------
TELECOMMUNICATIONS (2.1%)
Deutsche Telekom AG (ADR).......... 125,000 3,015,625
Scientific Atlanta, Inc............ 100,000 2,187,500
WorldCom, Inc.*.................... 89,900 2,876,800
-------------
8,079,925
-------------
TOTAL TECHNOLOGY (12.7%).......... 50,960,861
-------------
<PAGE>
DIVERSIFIED (1.7%)
MISCELLANEOUS
Tyco International Ltd. ........... 97,600 $ 6,789,291
-------------
TOTAL COMMON STOCKS (83.1%)
(Cost $288,694,203)............... 333,158,396
-------------
PREFERRED STOCKS:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
Republic Industries, Inc.
6.5% Exch. Conv. ................. 24,800 607,600
-------------
PRINTING, PUBLISHING &
BROADCASTING (0.2%)
Chancellor Broadcasting
7.0% Conv.+....................... 8,800 616,000
-------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A .............. 11,300 632,800
-------------
TOTAL BUSINESS SERVICES (0.5%) ... 1,856,400
-------------
CONSUMER CYCLICALS (0.3%)
AIRLINES
Continental Airlines Finance Trust
8.5% Conv. ....................... 12,800 1,011,199
-------------
CONSUMER NONCYCLICALS (0.4%)
CONTAINERS
Crown Cork & Seal Co., Inc. 4.5%
Conv. ............................ 29,700 1,499,850
-------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.1%)
Money Store
6.5% Conv. ....................... 12,000 327,000
-------------
INSURANCE (0.2%)
PennCorp Financial Group, Inc.
7.0% Conv.+....................... 11,350 712,213
-------------
TOTAL CREDIT SENSITIVE (0.3%) .... 1,039,213
-------------
ENERGY (0.1%)
OIL--DOMESTIC
Devon Financing Trust
$3.25 Conv........................ 7,600 532,000
-------------
TECHNOLOGY
TELECOMMUNICATIONS (0.8%)
QualComm Financial Trust
5.75% Conv.+...................... 28,800 1,364,400
WorldCom, Inc.
8.0% Conv. ....................... 21,900 2,455,538
-------------
TOTAL TECHNOLOGY (0.8%)........... 3,819,938
-------------
TOTAL PREFERRED STOCKS (2.4%)
(Cost $8,287,654)................. 9,758,600
-------------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.3%)
United Waste Systems, Inc.:
4.5% Conv., 06/01/01+............. $490,000 674,363
4.5% Conv., 06/01/01.............. 325,000 447,281
-------------
1,121,644
-------------
</TABLE>
17
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
PROFESSIONAL SERVICES (1.1%)
Career Horizons, Inc.
7.0% Conv., 11/01/02............... $ 575,000 $ 1,260,688
Danka Business Systems PLC 6.75%
Conv., 04/01/02.................... 670,000 992,438
First Financial Management Corp.
5.0% Conv., 12/15/99............... 1,000,000 2,035,000
Personnel Group of America 5.75%
Conv., 07/01/04+ .................. 320,000 343,600
--------------
4,631,726
--------------
TOTAL BUSINESS SERVICES (1.4%) .... 5,753,370
--------------
CAPITAL GOODS (0.4%)
MACHINERY
DII Group, Inc.
6.0% Conv., 10/15/02............... 1,245,000 1,680,750
--------------
CONSUMER CYCLICALS
LEISURE RELATED (0.2%)
CUC International, Inc.
3.0% Conv., 02/15/02+.............. 690,000 732,263
--------------
RETAIL--GENERAL (0.9%)
Central Garden & Pet Co.:
6.0% Conv. Sub. Note, 11/15/03+ ... 455,000 502,775
6.0%, Conv., 11/15/03.............. 670,000 740,350
Home Depot, Inc.
3.25% Conv., 10/01/01.............. 650,000 739,375
U.S. Office Products Co.
5.5% Conv., 02/01/01............... 1,225,000 1,505,219
--------------
3,487,719
--------------
TOTAL CONSUMER CYCLICALS (1.1%) 4,219,982
--------------
CONSUMER NONCYCLICALS
DRUGS (0.4%)
MedImmune, Inc.:
7.0% Conv. Sub. Note, 07/01/03+ ... 360,000 408,600
7.0% Conv., 07/01/03 .............. 170,000 192,950
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+............. 580,000 630,025
4.25% Conv., 05/31/00.............. 185,000 200,956
--------------
1,432,531
--------------
HOSPITAL SUPPLIES & SERVICES (0.6%)
FPA Medical Management, Inc.:
6.5% Conv., 12/15/01+.............. 465,000 532,425
6.5% Conv., 12/15/01 .............. 210,000 240,450
Phycor, Inc.
4.5% Conv., 02/01/03............... 790,000 863,075
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+.............. 725,000 906,250
--------------
2,542,200
--------------
TOTAL CONSUMER NONCYCLICALS (1.0%) 3,974,731
--------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.3%)
RAC Financial Group, Inc.:
7.25% Conv. Sub., 08/15/03+ ....... 440,000 954,800
7.25% Conv., 08/15/03.............. 125,000 271,250
--------------
1,226,050
--------------
INSURANCE (0.3%)
Penn Treaty American Corp.:
6.25% Conv., 12/01/03+............. $ 660,000 $ 825,000
6.25% Conv., 12/01/03 ............. 150,000 187,500
--------------
1,012,500
--------------
TOTAL CREDIT SENSITIVE (0.6%) ..... 2,238,550
--------------
ENERGY
COAL & GAS PIPELINES (0.5%)
Nabors Industries, Inc.
5.0% Conv., 05/15/06............... 775,000 1,168,313
Swift Energy Co.
6.25% Conv., 11/15/06.............. 675,000 677,531
--------------
1,845,844
--------------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07........................... 345,000 401,494
Seacor Holdings, Inc.:
5.375% Conv., 11/15/06+............ 485,000 509,250
5.375% Conv., 11/15/06............. 145,000 152,250
--------------
1,062,994
--------------
TOTAL ENERGY (0.7%)................ 2,908,838
--------------
TECHNOLOGY
ELECTRONICS (4.7%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ ......................... 1,130,000 2,308,025
Applied Magnetics Corp.:
7.0% Conv. Sub., 03/15/06.......... 1,505,000 2,093,831
7.0% Conv. Sub. Euro,
3/15/06............................ 50,000 69,563
Baan Co.
4.5% Conv. Sub. Notes,
12/15/01+.......................... 860,000 1,367,400
HMT Technology Corp.
5.75% Conv., 01/15/04+ ............ 1,830,000 1,560,075
Motorola, Inc.
Zero Coupon Conv., 09/27/13 ....... 1,590,000 1,431,000
Photronics, Inc.
6.0% Conv., 06/01/04............... 1,000,000 1,115,000
Quantum Corp.
5.0% Conv., 03/01/03+ ............. 405,000 772,538
Sanmina Corporation
5.5% Conv., 08/15/02+.............. 1,120,000 2,587,200
SCI Systems, Inc.
5.0% Conv., 05/01/06............... 1,160,000 1,690,700
Solectron Corp.
6.0% Conv., 03/01/06+.............. 790,000 987,500
Trikon Technologies, Inc.
7.125% Conv., 10/15/01+............ 520,000 369,200
Xilinx, Inc.
5.25% Conv., 11/01/02+............. 1,235,000 1,421,794
3Com Corp.
10.25% Conv., 11/01/01+ ........... 915,000 1,267,275
--------------
19,041,101
--------------
18
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
TELECOMMUNICATIONS (0.5%)
Comverse Technology, Inc.:
5.75% Conv. Sub., 10/01/06+ ....... $ 1,210,000 $ 1,585,100
5.75% Conv., 10/01/06.............. 365,000 478,147
--------------
2,063,247
--------------
TOTAL TECHNOLOGY (5.2%)............ 21,104,348
--------------
TOTAL LONG-TERM DEBT SECURITIES (10.4%)
(Amortized Cost $35,550,397) ...... 41,880,569
--------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank:
5.3%, due 07/01/97................. 7,550,000 7,550,000
5.39%, due 07/03/97................ 10,150,000 10,146,960
Federal National Mortgage
Association
5.35%, due 08/14/97................ $ 5,000,000 $ 5,000,000
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(5.7%)............................. 22,696,960
--------------
TOTAL SHORT-TERM DEBT SECURITIES (5.7%)
(Amortized Cost $22,696,960) ...... 22,696,960
--------------
TOTAL INVESTMENTS (101.6%)
(Cost/Amortized Cost
$355,229,214)...................... 407,494,525
OTHER ASSETS
LESS LIABILITIES (-1.6%)........... (6,503,197)
--------------
NET ASSETS (100.0%)................. $400,991,328
==============
</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. At June 30, 1997, these securities amounted to $23,938,071 or
6.0% of net assets.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
19
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.5%)
Air Products & Chemicals, Inc. ... 10,300 $ 836,875
Avery Dennison Corp. .............. 9,900 397,238
Dow Chemical Co. .................. 22,900 1,995,163
Dupont (E.I.) de Nemours & Co. .... 109,700 6,897,388
Eastman Chemical Company .......... 7,300 463,550
Ecolab, Inc. ...................... 7,300 348,575
FMC Corp.* ........................ 4,300 341,581
Goodrich (B.F.) Co. ............... 6,800 294,525
Grace (W.R.) & Co. ................ 7,000 385,875
Hercules, Inc. .................... 9,400 450,025
Millipore Corp. ................... 7,200 316,800
Monsanto Co. ...................... 57,500 2,476,094
Nalco Chemical Co. ................ 7,700 297,413
Rohm & Haas Co. ................... 5,600 504,350
Union Carbide Corp. ............... 12,000 564,750
--------------
16,570,202
--------------
CHEMICALS--SPECIALTY (0.2%)
Great Lakes Chemical Corp. ........ 6,500 340,438
Morton International, Inc. ........ 13,400 404,513
Raychem Corp. ..................... 4,300 319,813
Sigma-Aldrich Corp. ............... 10,400 364,650
--------------
1,429,414
--------------
METALS & MINING (1.0%)
Alcan Aluminium Ltd. .............. 7,000 242,813
Alcan Aluminum Ltd. (Canada) ..... 14,800 504,783
Aluminum Co. of America ........... 17,100 1,288,913
Barrick Gold Corp. ................ 34,000 748,000
Cyprus Amax Minerals Co. .......... 12,600 308,700
Engelhard Corp. ................... 14,850 310,922
Freeport-McMoRan Copper & Gold,
Inc. (Class B) ................... 19,800 616,275
Homestake Mining Co. .............. 25,400 331,788
Inco Ltd. ......................... 15,100 453,944
Newmont Mining Corp. .............. 15,007 585,273
Phelps Dodge Corp. ................ 6,200 528,163
Placer Dome, Inc. ................. 19,900 325,863
Reynolds Metals Co. ............... 7,200 513,000
--------------
6,758,437
--------------
PAPER (1.2%)
Champion International Corp. ..... 9,000 497,250
Georgia Pacific Corp. ............. 8,800 751,300
International Paper Co. ........... 29,025 1,409,527
James River Corp. ................. 8,600 318,200
Kimberly Clark Corp. .............. 53,944 2,683,714
Mead Corp. ........................ 5,200 323,700
Moore Corp. Ltd. .................. 14,100 277,594
Stone Container Corp. ............. 17,800 254,763
Temple Inland, Inc. ............... 5,800 313,200
Union Camp Corp. .................. 6,700 335,000
Westvaco Corp. .................... 9,500 298,656
Willamette Industries, Inc. ...... 5,200 364,000
--------------
7,826,904
--------------
STEEL (0.1%)
Allegheny Teledyne, Inc. .......... 17,900 $ 483,300
Nucor Corp. ....................... 8,700 491,550
USX-U.S. Steel Group............... 8,900 312,056
Worthington Industries, Inc. ..... 17,700 324,131
--------------
1,611,037
--------------
TOTAL BASIC MATERIALS (5.0%) .... 34,195,994
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Browning-Ferris Industries, Inc. . 19,700 655,025
Johnson Controls, Inc. ............ 8,100 332,606
Thermo Electron Corp.* ............ 14,100 484,688
Waste Management, Inc. ............ 44,000 1,413,500
--------------
2,885,819
--------------
<PAGE>
PRINTING, PUBLISHING &
BROADCASTING (1.6%)
Comcast Corp. (Class A) SPL ...... 30,100 643,388
Deluxe Corp. ...................... 9,700 331,013
Donnelley (R.R.) & Sons Co. ...... 14,200 520,075
Dow Jones & Co., Inc. ............. 8,600 345,613
Dun & Bradstreet Corp. ............ 16,000 420,000
Gannett Co. ....................... 13,700 1,352,875
King World Productions, Inc. ..... 9,600 336,000
Knight-Ridder, Inc. ............... 8,700 426,844
McGraw-Hill Companies, Inc. ...... 9,200 541,075
New York Times Co. ................ 9,100 450,450
TCI Group (Class A)* .............. 64,100 953,488
Time Warner, Inc. ................. 53,500 2,581,375
Times Mirror Co. (Class A) ........ 9,200 508,300
Tribune Co. ....................... 11,600 557,525
Viacom, Inc. (Class A)* ........... 1,000 29,438
Viacom, Inc. (Class B)* ........... 33,000 990,000
--------------
10,987,459
--------------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. ................. 10,600 341,850
Cognizant Corp. ................... 15,700 635,850
Interpublic Group Cos., Inc. ..... 7,600 465,975
Service Corp. International ...... 22,600 742,995
--------------
2,186,670
--------------
TRUCKING, SHIPPING (0.3%)
Federal Express Corp.* ............ 10,900 629,475
Laidlaw, Inc. (Class B) ........... 30,700 424,044
Ryder System, Inc. ................ 10,600 349,800
--------------
1,403,319
--------------
TOTAL BUSINESS SERVICES (2.6%) ... 17,463,267
--------------
CAPITAL GOODS
AEROSPACE (1.6%)
Boeing Co. ........................ 69,934 3,710,873
General Dynamics Corp. ............ 5,600 420,000
Lockheed Martin Corp. ............. 18,704 1,937,033
McDonnell Douglas Corp. ........... 20,000 1,370,000
Northrop Grumman Corp. ............ 5,600 491,750
Raytheon Co. ...................... 22,900 1,167,900
Rockwell International Corp. ..... 20,600 1,215,400
TRW, Inc. ......................... 11,700 664,706
--------------
10,977,662
--------------
20
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.7%)
Armstrong World Industries, Inc. .. 4,100 $ 300,838
Crane Co. ......................... 7,700 321,956
Louisiana Pacific Corp. ........... 16,300 344,338
Masco Corp. ....................... 15,600 651,300
Owens Corning ..................... 6,700 288,938
PPG Industries, Inc. .............. 17,300 1,005,563
Sherwin Williams Co. .............. 16,700 515,613
Weyerhaeuser Co. .................. 19,100 993,200
--------------
4,421,746
--------------
ELECTRICAL EQUIPMENT (3.8%)
Emerson Electric Co. .............. 43,300 2,384,206
General Electric Co. .............. 318,000 20,789,250
Grainger (W.W.), Inc. ............. 5,000 390,938
Thomas & Betts Corp. .............. 5,900 310,119
Westinghouse Electric Corp. ...... 62,000 1,433,750
--------------
25,308,263
--------------
MACHINERY (2.0%)
Allied Signal, Inc. ............... 27,600 2,318,400
Case Corp. ........................ 7,200 495,900
Caterpillar, Inc. ................. 18,400 1,975,700
Cooper Industries, Inc. ........... 11,500 572,125
Cummins Engine, Inc. .............. 4,400 310,475
Deere & Co. ....................... 24,900 1,366,388
Dover Corp. ....................... 10,900 670,350
Fluor Corp. ....................... 7,900 435,981
Foster Wheeler Corp. .............. 7,900 319,950
General Signal Corp. .............. 7,000 305,375
Harnischfeger Industries Corp. ... 7,500 311,250
Illinois Tool Works, Inc. ......... 24,300 1,213,481
Ingersoll Rand Co. ................ 10,400 642,200
Pall Corp. ........................ 14,200 330,150
Parker-Hannifin Corp. ............. 6,900 418,744
United Technologies Corp. ......... 23,000 1,909,000
--------------
13,595,469
--------------
TOTAL CAPITAL GOODS (8.1%) ...... 54,303,140
--------------
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* ........................ 8,500 786,250
Delta Air Lines, Inc. ............. 6,300 516,600
Southwest Airlines Co. ............ 13,800 357,075
USAir Group, Inc.* ................ 9,500 332,500
--------------
1,992,425
--------------
APPAREL, TEXTILE (0.5%)
Fruit of the Loom, Inc.* .......... 9,300 288,300
Liz Claiborne, Inc. ............... 7,300 340,363
National Service Industries, Inc. 6,500 316,469
Nike, Inc. (Class B) .............. 28,500 1,663,688
Reebok International Ltd. ......... 7,500 350,625
VF Corp. .......................... 6,000 508,500
--------------
3,467,945
--------------
AUTO RELATED (0.5%)
Dana Corp. ........................ 9,600 364,800
Eaton Corp. ....................... 7,300 637,381
Echlin, Inc. ...................... 8,500 306,000
Genuine Parts Co. ................. 16,000 542,000
Goodyear Tire & Rubber Co. ........ 17,900 1,133,294
Snap-On, Inc. ..................... 8,450 $ 332,719
--------------
3,316,194
--------------
AUTOS & TRUCKS (1.7%)
AutoZone, Inc.* ................... 14,200 334,588
Chrysler Corp. .................... 66,300 2,175,469
Ford Motor Co. .................... 115,700 4,367,675
General Motors Corp. .............. 71,300 3,970,519
Paccar, Inc. ...................... 7,000 325,063
--------------
11,173,314
--------------
<PAGE>
FOOD SERVICES, LODGING (0.8%)
HFS, Inc.* ........................ 15,400 893,200
Harrah's Entertainment, Inc.* .... 16,400 295,200
Marriott International, Inc. ..... 12,300 754,913
McDonald's Corp. .................. 68,400 3,304,575
Wendy's International, Inc. ...... 13,300 344,969
--------------
5,592,857
--------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.3%)
Black & Decker Corp. .............. 8,100 301,219
Maytag Corp. ...................... 11,000 287,375
Newell Co. ........................ 15,700 622,113
Rubbermaid, Inc. .................. 14,400 428,400
Stanley Works ..................... 7,600 304,000
Whirlpool Corp. ................... 7,100 387,394
--------------
2,330,501
--------------
LEISURE RELATED (1.4%)
American Greetings Corp. .......... 9,100 337,838
Brunswick Corp. ................... 9,200 287,500
CUC International, Inc.* .......... 39,750 1,026,047
Disney (Walt) Co. ................. 65,600 5,264,400
Hasbro, Inc. ...................... 11,400 323,475
Hilton Hotels Corp. ............... 24,200 642,813
ITT Corp.* ........................ 11,000 671,688
Mattel, Inc. ...................... 28,943 980,444
--------------
9,534,205
--------------
PHOTO & OPTICAL (0.5%)
Allergan, Inc. .................... 10,200 324,488
Bausch & Lomb, Inc. ............... 7,300 344,013
Eastman Kodak Co. ................. 30,600 2,348,550
Polaroid Corp. .................... 5,900 327,450
--------------
3,344,501
--------------
RETAIL--GENERAL (4.0%)
Circuit City Stores, Inc. ......... 9,300 330,731
Costco Cos., Inc.* ................ 20,600 677,225
CVS Corp. ......................... 16,300 835,375
Dayton Hudson Corp. ............... 21,200 1,127,575
Dillard's Department Stores, Inc.
(Class A) ........................ 10,800 373,950
Federated Department Stores, Inc.* 20,300 705,425
Gap, Inc. ......................... 26,500 1,030,188
Harcourt General, Inc. ............ 6,300 300,038
Home Depot, Inc. .................. 47,400 3,267,638
K-Mart Corp.* ..................... 47,300 579,425
Limited, Inc. ..................... 25,700 520,425
Lowe's Cos., Inc. ................. 16,900 627,413
May Department Stores Co. ......... 23,200 1,096,200
Nordstrom, Inc. ................... 7,800 382,688
21
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Penney (J.C.), Inc. ............... 24,100 $ 1,257,719
Pep Boys Manny Moe & Jack ......... 9,800 333,813
Rite Aid Corp. .................... 12,000 598,500
Sears, Roebuck & Co. .............. 38,200 2,053,250
TJX Cos., Inc. .................... 15,200 400,900
Tandy Corp. ....................... 5,800 324,800
Toys R Us, Inc.* .................. 27,500 962,500
Wal-Mart Stores, Inc. ............. 221,100 7,475,944
Walgreen Co. ...................... 24,000 1,287,000
Woolworth Corp.* .................. 13,300 319,200
--------------
26,867,922
--------------
TOTAL CONSUMER CYCLICALS (10.0%) 67,619,864
--------------
CONSUMER NONCYCLICALS
BEVERAGES (3.8%)
Anheuser Busch, Inc. .............. 48,600 2,038,163
Brown Forman Corp. (Class B) ..... 6,000 292,875
Coca-Cola Co. ..................... 240,600 16,240,500
Pepsico, Inc. ..................... 149,700 5,623,106
Seagram Ltd. ...................... 36,100 1,453,025
--------------
25,647,669
--------------
CONTAINERS (0.2%)
Bemis, Inc. ....................... 7,500 324,375
Crown Cork & Seal Co., Inc. ...... 11,200 598,500
Tupperware Corp. .................. 8,900 324,850
--------------
1,247,725
--------------
DRUGS (7.2%)
ALZA Corp. (Class A)* ............. 10,400 301,600
American Home Products Corp. ..... 62,800 4,804,200
Amgen, Inc.* ...................... 25,900 1,505,438
Bristol-Myers Squibb Co. .......... 97,600 7,905,600
Lilly (Eli) & Co. ................. 54,200 5,924,738
Merck & Co., Inc. ................. 117,200 12,130,200
Pharmacia & Upjohn, Inc. .......... 49,590 1,723,253
Pfizer, Inc. ...................... 62,700 7,492,650
Schering Plough Corp. ............. 71,100 3,403,913
Warner-Lambert Co. ................ 26,400 3,280,200
--------------
48,471,792
--------------
FOODS (2.5%)
Archer Daniels Midland Co. ........ 52,074 1,223,739
Campbell Soup Co. ................. 45,400 2,270,000
ConAgra, Inc. ..................... 23,300 1,494,113
CPC International, Inc. ........... 14,000 1,292,375
General Mills, Inc. ............... 15,300 996,413
Heinz (H.J.) Co. .................. 35,950 1,658,194
Hershey Foods Corp. ............... 14,900 824,156
Kellogg Co. ....................... 20,000 1,712,500
Pioneer Hi Bred International,
Inc. ............................. 7,800 624,000
Quaker Oats Co. ................... 13,300 596,838
Ralston Purina Group .............. 10,400 854,750
Sara Lee Corp. .................... 46,900 1,952,213
Whitman Corp. ..................... 13,200 316,800
Wrigley (Wm.), Jr. Co. ............ 11,300 757,100
--------------
16,573,191
--------------
HOSPITAL SUPPLIES & SERVICES (3.9%)
Abbott Laboratories ............... 75,500 5,039,625
Baxter International, Inc. ........ 27,100 1,415,975
Becton Dickinson & Co. ............ 11,400 577,125
Biomet, Inc. ...................... 17,000 $ 316,625
Boston Scientific Corp.* .......... 19,000 1,167,313
Cardinal Health, Inc. ............. 10,200 583,950
Columbia/HCA Healthcare Corp. .... 65,200 2,563,175
Guidant Corp. ..................... 7,000 595,000
Healthsouth Corp.* ................ 33,500 835,406
Humana, Inc.* ..................... 15,400 356,125
Johnson and Johnson ............... 130,000 8,368,750
Mallinckrodt, Inc. ................ 7,500 285,000
Medtronic, Inc. ................... 23,300 1,887,300
Saint Jude Medical, Inc.* ......... 8,650 337,350
Tenet Healthcare Corp.* ........... 28,400 839,575
United Healthcare Corp. ........... 18,100 941,200
U.S. Surgical Corp. ............... 9,600 357,600
--------------
26,467,094
--------------
<PAGE>
RETAIL--FOOD (0.6%)
Albertsons, Inc. .................. 24,500 894,250
American Stores Co. ............... 14,200 701,125
Giant Food, Inc. (Class A) ........ 9,900 322,988
Kroger Co.* ....................... 24,800 719,200
Supervalu, Inc. ................... 8,900 307,050
Sysco Corp. ....................... 16,700 609,550
Winn Dixie Stores, Inc. ........... 14,500 540,125
--------------
4,094,288
--------------
SOAPS & TOILETRIES (3.3%)
Avon Products, Inc. ............... 12,700 896,144
Clorox Co. ........................ 4,800 633,600
Colgate Palmolive Co. ............. 29,000 1,892,250
Gillette Corp. .................... 54,800 5,192,300
International Flavors &
Fragrances, Inc. ................. 10,500 530,250
Procter & Gamble Co. .............. 66,600 9,407,250
Unilever N.V. ..................... 15,700 3,422,600
--------------
21,974,394
--------------
TOBACCO (1.8%)
American Brands, Inc. ............. 15,200 567,150
Loews Corp. ....................... 10,900 1,091,363
Philip Morris Cos., Inc. .......... 237,300 10,530,188
UST, Inc. ......................... 17,600 488,400
--------------
12,677,101
--------------
TOTAL CONSUMER NONCYCLICALS (23.3%) 157,153,254
--------------
CREDIT SENSITIVE
BANKS (7.4%)
Ahmanson (H.F.) & Co. ............. 9,800 421,400
Banc One Corp. .................... 56,600 2,741,563
Bank of Boston Corp. .............. 14,200 1,023,288
Bank of New York Co. .............. 37,100 1,613,850
BankAmerica Corp. ................. 69,300 4,474,181
Bankers Trust New York Corp. ..... 7,600 661,200
Barnett Banks, Inc. ............... 19,800 1,039,500
Chase Manhattan Corp. ............. 42,140 4,090,214
Citicorp .......................... 45,300 5,461,481
Comerica, Inc. .................... 10,200 693,600
CoreStates Financial Corp. ........ 21,200 1,139,500
Fifth Third Bancorp ............... 10,000 820,313
First Bank Systems ................ 13,000 1,109,875
First Chicago NBD Corp. ........... 30,149 1,824,015
First Union Corp. ................. 27,945 2,584,913
22
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Golden West Financial Corp. ...... 5,400 $ 378,000
Great Western Financial Corp. .... 13,400 720,250
KeyCorp. .......................... 21,300 1,190,138
Mellon Bank Corp. ................. 24,500 1,105,563
Morgan (J.P.) & Co., Inc. ......... 18,000 1,878,750
National City Corp. ............... 21,000 1,102,500
NationsBank Corp. ................. 71,299 4,598,786
Norwest Corp. ..................... 36,500 2,053,125
PNC Bank Corp. .................... 31,600 1,315,350
Republic New York Corp. ........... 5,100 548,250
Suntrust Banks, Inc. .............. 21,000 1,156,313
U.S. Bancorp. ..................... 14,200 910,575
Wachovia Corp. .................... 15,600 909,675
Wells Fargo & Co. ................. 8,700 2,344,650
--------------
49,910,818
--------------
FINANCIAL SERVICES (2.3%)
American Express Co. .............. 46,200 3,441,900
Beneficial Corp. .................. 5,200 369,525
Country Wide Credit Industries,
Inc. ............................. 10,200 318,113
Equifax, Inc. ..................... 15,400 572,688
Fleet Financial Group, Inc. ...... 25,579 1,617,872
Green Tree Financial Corp. ........ 12,700 452,438
Household International, Inc. .... 9,500 1,115,656
MBIA, Inc. ........................ 4,100 462,531
MBNA Corp. ........................ 32,625 1,194,891
Merrill Lynch & Co., Inc. ......... 32,400 1,931,850
Morgan Stanley, Dean Witter,
Discover & Co. ................... 56,005 2,411,715
Salomon, Inc. ..................... 10,100 561,813
Schwab (Charles) Corp. ............ 17,100 695,756
Transamerica Corp. ................ 6,200 580,088
--------------
15,726,836
--------------
INSURANCE (4.2%)
Aetna, Inc. ....................... 14,643 1,499,077
Allstate Corp. .................... 42,938 3,134,474
American General Corp. ............ 23,500 1,122,125
American International Group, Inc. 45,650 6,818,969
Aon Corp. ......................... 16,150 835,763
Chubb Corp. ....................... 17,000 1,136,875
CIGNA Corp. ....................... 7,200 1,278,000
Conseco, Inc. ..................... 18,100 669,700
General Re Corp. .................. 7,800 1,419,600
Hartford Financial Services Group,
Inc. ............................. 11,200 926,800
Jefferson-Pilot Corp. ............. 6,700 468,163
Lincoln National Corp. Industries . 9,700 624,438
Marsh & McLennan Cos., Inc. ...... 16,200 1,156,275
MGIC Investment Corp. ............. 11,200 536,900
Providian Financial Corp.* ........ 10,000 321,250
Safeco Corp. ...................... 12,300 574,256
Saint Paul Cos., Inc. ............. 7,900 602,375
Torchmark Corp. ................... 6,700 477,375
Travelers Group, Inc. ............. 62,700 3,954,019
UNUM Corp. ........................ 13,900 583,800
USF&G Corp. ....................... 13,900 333,600
--------------
28,473,834
--------------
MORTGAGE RELATED (1.0%)
Federal Home Loan Mortgage Corp. . 67,800 $ 2,330,625
Federal National Mortgage
Association ...................... 103,500 4,515,188
--------------
6,845,813
--------------
<PAGE>
UTILITY--ELECTRIC (2.4%)
American Electric Power, Inc. .... 18,300 768,600
Baltimore Gas & Electric Co. ..... 13,900 370,956
Carolina Power & Light Co. ........ 14,200 509,425
Central & South West Corp. ........ 20,600 437,750
CINergy Corp. ..................... 15,313 533,084
Consolidated Edison Co. N.Y., Inc. 22,800 671,175
Dominion Resources, Inc. .......... 17,900 655,588
DTE Energy Co. .................... 13,700 378,463
Duke Power Co. .................... 34,830 1,669,663
Edison International .............. 40,800 1,014,900
Entergy Corp. ..................... 23,000 629,625
FPL Group, Inc. ................... 17,700 815,306
GPU, Inc. ......................... 11,700 419,738
Houston Industries, Inc. .......... 22,700 486,631
Niagara Mohawk Power Co.* ......... 30,800 263,725
Northern States Power Co. ......... 6,400 331,200
Ohio Edison Co. ................... 15,200 331,550
Pacificorp. ....................... 28,700 631,400
Peco Energy Co. ................... 21,600 453,600
PG&E Corp. ........................ 39,600 960,300
PP&L Resources, Inc. .............. 16,900 336,944
Public Service Enterprise Group .. 22,400 560,000
Southern Co. ...................... 66,100 1,445,938
Texas Utilities Co. ............... 21,800 750,738
Unicom Corporation ................ 21,000 467,250
Union Electric Co. ................ 9,900 373,106
--------------
16,266,655
--------------
UTILITY--GAS (0.4%)
Columbia Gas System, Inc. ......... 5,400 352,350
Consolidated Natural Gas Co. ..... 9,200 495,075
ENRON Corp. ....................... 24,700 1,008,069
Nicor, Inc. ....................... 9,300 333,638
Peoples Energy Corp. .............. 8,600 321,963
--------------
2,511,095
--------------
UTILITY--TELEPHONE (5.3%)
Alltel Corp. ...................... 17,700 591,844
Ameritech Corp. ................... 53,600 3,641,450
AT&T Corp. ........................ 158,700 5,564,419
Bell Atlantic Corp. ............... 42,700 3,239,863
BellSouth Corp. ................... 96,900 4,493,738
Frontier Corp. .................... 16,300 324,981
GTE Corp. ......................... 93,200 4,089,150
NYNEX Corp. ....................... 43,000 2,477,875
SBC Communications, Inc. .......... 88,973 5,505,204
Sprint Corp. ...................... 42,000 2,210,250
U.S. West Communications Group ... 45,400 1,711,013
U.S. West Media Group * ........... 58,800 1,190,700
--------------
35,040,487
--------------
TOTAL CREDIT SENSITIVE (23.0%) ... 154,775,538
--------------
23
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
ENERGY
COAL & GAS PIPELINES (0.6%)
Burlington Resources, Inc. ........ 11,700 $ 516,263
Coastal Corp. ..................... 10,300 547,831
Pacific Enterprises, Ltd. ......... 10,200 342,975
Praxair, Inc. ..................... 14,700 823,200
Sonat, Inc. ....................... 8,100 415,125
Tenneco, Inc. ..................... 16,000 723,000
Williams Cos., Inc. ............... 15,350 671,563
--------------
4,039,957
--------------
OIL--DOMESTIC (2.0%)
Amerada Hess Corp. ................ 8,900 494,506
Amoco Corp. ....................... 48,600 4,225,163
Ashland, Inc. ..................... 7,300 338,538
Atlantic Richfield Co. ............ 31,700 2,234,850
Kerr McGee Corp. .................. 4,900 310,538
Louisiana Land & Exploration Corp. 6,300 359,888
Occidental Petroleum Corp. ........ 31,900 799,494
Oryx Energy Co.* .................. 16,900 357,013
Pennzoil Co. ...................... 4,600 353,050
Phillips Petroleum Co. ............ 25,900 1,133,125
Sun, Inc. ......................... 10,300 319,300
Union Pacific Resources Group,
Inc. ............................. 23,808 592,224
Unocal Corp. ...................... 23,800 923,738
USX-Marathon Group ................ 27,200 785,400
--------------
13,226,827
--------------
OIL--INTERNATIONAL (5.8%)
Chevron Corp. ..................... 63,800 4,717,213
Exxon Corp. ....................... 241,100 14,827,650
Mobil Corp. ....................... 75,700 5,289,538
Royal Dutch Petroleum Co. (ADR) .. 52,300 11,375,250
Texaco, Inc. ...................... 25,800 2,805,750
--------------
39,015,401
--------------
OIL--SUPPLIES & CONSTRUCTION (0.9%)
Baker Hughes, Inc. ................ 13,700 530,019
Dresser Industries, Inc. .......... 16,500 614,625
Halliburton Co. ................... 11,800 935,150
McDermott International, Inc. .... 11,100 323,981
Schlumberger, Ltd. ................ 23,900 2,987,500
Western Atlas, Inc.* .............. 5,200 380,900
--------------
5,772,175
--------------
RAILROADS (0.8%)
Burlington Northern Santa Fe ..... 15,051 1,352,709
CSX Corp. ......................... 21,300 1,182,150
Norfolk Southern Corp. ............ 12,300 1,239,225
Union Pacific Corp. ............... 24,100 1,699,050
--------------
5,473,134
--------------
TOTAL ENERGY (10.1%) ............. 67,527,494
--------------
TECHNOLOGY
ELECTRONICS (4.6%)
Advanced Micro Devices, Inc.* .... 13,700 493,200
AMP, Inc. ......................... 21,400 893,450
Applied Materials, Inc.* .......... 17,600 1,246,300
Cisco Systems, Inc.* .............. 64,400 4,322,850
EMC Corp.* ........................ 23,900 932,100
General Instrument Corp.* ......... 13,300 $ 332,500
Harris Corp. ...................... 3,900 327,600
Intel Corp. ....................... 79,700 11,302,456
ITT Industries, Inc. .............. 12,400 319,300
LSI Logic Corp.* .................. 13,300 425,600
Micron Technology, Inc.* .......... 20,500 818,719
Motorola, Inc. .................... 57,800 4,392,800
National Semiconductor Corp.* .... 13,200 404,250
Parametric Technology Corp.* ..... 12,100 515,006
Perkin-Elmer Corp. ................ 4,300 342,119
Seagate Technology, Inc.* ......... 23,400 823,388
Tektronix, Inc. ................... 5,400 324,000
Texas Instruments, Inc. ........... 18,500 1,555,156
3Com Corp.* ....................... 32,500 1,462,500
--------------
31,233,294
--------------
<PAGE>
OFFICE EQUIPMENT (3.9%)
Apple Computer, Inc.* ............. 21,900 312,075
Bay Networks, Inc.* ............... 18,600 494,063
Ceridian Corp.* ................... 8,200 346,450
Compaq Computer Corp.* ............ 26,700 2,649,975
Dell Computer Corp.* .............. 16,500 1,937,719
Digital Equipment Corp.* .......... 14,100 499,669
Hewlett-Packard Co. ............... 98,900 5,538,400
Honeywell, Inc. ................... 12,000 910,500
International Business Machines
Corp. ............................ 96,700 8,721,131
Pitney Bowes, Inc. ................ 13,700 952,150
Sun Microsystems, Inc.* ........... 35,900 1,336,153
Tandem Computers, Inc.* ........... 16,100 326,025
Unisys Corp.* ..................... 3,200 24,400
Xerox Corp. ....................... 31,500 2,484,563
--------------
26,533,273
--------------
OFFICE EQUIPMENT SERVICES (3.7%)
Adobe Systems, Inc. ............... 9,300 326,081
Autodesk, Inc. .................... 8,700 333,319
Automatic Data Processing, Inc. .. 28,400 1,334,800
Computer Associates International,
Inc. ............................. 35,250 1,962,984
Computer Sciences Corp.* .......... 7,200 519,300
First Data Corp. .................. 43,600 1,915,675
Microsoft Corp.* .................. 116,000 14,659,500
Novell, Inc.* ..................... 29,500 204,656
Oracle Corp.* ..................... 63,825 3,215,184
Silicon Graphics, Inc.* ........... 20,800 312,000
--------------
24,783,499
--------------
TELECOMMUNICATIONS (2.4%)
AirTouch Communications, Inc.* .... 48,800 1,335,900
Andrew Corp.* ..................... 12,412 349,088
Cabletron Systems, Inc.* .......... 14,000 396,375
DSC Communications Corp.* ......... 13,000 289,250
Lucent Technologies, Inc. ......... 62,294 4,489,061
MCI Communications Corp. .......... 67,000 2,564,844
Northern Telecommunications Ltd. . 25,300 2,302,300
Tellabs, Inc.* .................... 17,600 983,400
WorldCom, Inc.* ................... 86,600 2,771,200
--------------
15,481,418
--------------
TOTAL TECHNOLOGY (14.6%) ......... 98,031,484
--------------
24
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
DIVERSIFIED
MISCELLANEOUS (1.2%)
Corning, Inc. ..................... 21,900 $ 1,218,188
Ikon Office Solutions, Inc. ...... 13,800 344,088
Minnesota Mining & Manufacturing
Co. .............................. 40,500 4,131,000
Textron, Inc. ..................... 16,000 1,062,000
Tyco International Ltd. ........... 16,400 1,140,825
--------------
TOTAL DIVERSIFIED (1.2%) ......... 7,896,101
--------------
TOTAL COMMON STOCKS (97.9%)
(Cost $506,663,988) .............. 658,966,136
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT & AGENCIES
U.S. Treasury
5.07%, due 09/18/97 ** ..... $ 600,000 $ 593,272
Federal Home Loan Bank:
5.3%, due 07/01/97 .......... 7,200,000 7,200,000
5.39%, due 07/03/97 ......... 500,000 499,850
--------------
TOTAL U.S. GOVERNMENT &
AGENCIES (1.2%) ............ 8,293,122
--------------
TOTAL SHORT-TERM DEBT SECURITIES (1.2%)
(Amortized Cost $8,293,175) 8,293,122
--------------
TOTAL INVESTMENTS (99.1%)
(Cost/Amortized Cost $514,957,163) 667,259,258
OTHER ASSETS
LESS LIABILITIES (0.9%) .... 5,957,588
--------------
NET ASSETS (100.0%) .......... $673,216,846
==============
</TABLE>
Financial Futures Contracts outstanding at June 30, 1997:
<TABLE>
<CAPTION>
EXPIRATION NUMBER ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE OF CONTRACTS VALUE 06/30/97 DEPRECIATION
- -------------------- ------------ -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
LONG S&P 500 INDEX* 9/97 15 $6,700,750 $6,676,875 $(23,875)
</TABLE>
- ------------
* Non-income producing.
** Security segregated as collateral on financial futures contracts.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
25
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND WARRANTS:
BASIC MATERIALS (0.4%)
CHEMICALS
Monsanto Co. ..................... 775,000 $ 33,373,438
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Waste Management, Inc. ........... 900,000 28,912,500
--------------
PRINTING, PUBLISHING &
BROADCASTING (4.6%)
Chris Craft Industries, Inc.
(Class B)*++ .................... 1,226,156 59,162,027
Comcast Corp. (Class A) SPL ..... 1,011,800 21,627,225
Liberty Media Group
(Class A)* ...................... 2,323,963 55,194,121
TCI Group (Class A)* ............. 8,399,236 124,938,636
TCI Satellite Entertainment, Inc.
(Class A)* ...................... 624,424 4,917,339
Time Warner, Inc. ................ 228,900 11,044,425
Viacom, Inc. (Class B)* .......... 3,170,300 95,109,000
--------------
371,992,773
--------------
PROFESSIONAL SERVICES (0.8%)
ADT Ltd.* ........................ 1,946,000 64,218,000
--------------
TOTAL BUSINESS SERVICES (5.8%) .. 465,123,273
--------------
CAPITAL GOODS
AEROSPACE (0.3%)
Loral Space & Communications* .... 1,540,000 23,100,000
--------------
ELECTRICAL EQUIPMENT (0.3%)
Westinghouse Electric Corp. ..... 1,175,000 27,171,875
--------------
TOTAL CAPITAL GOODS (0.6%) ..... 50,271,875
--------------
CONSUMER CYCLICALS
AIRLINES (1.2%)
AMR Corp.* ....................... 185,000 17,112,500
Delta Air Lines, Inc. ............ 479,300 39,302,600
Northwest Airlines Corp.
(Class A)* ...................... 298,300 10,850,663
UAL Corp.* (a) ................... 378,900 27,115,031
--------------
94,380,794
--------------
AUTO RELATED (0.6%)
Republic Industries, Inc.* (a) .. 1,879,500 46,752,563
--------------
AUTOS & TRUCKS (1.0%)
AutoZone, Inc.* .................. 3,506,600 82,624,263
--------------
LEISURE RELATED (5.6%)
CUC International, Inc.* (a) .... 14,734,500 380,334,281
ITT Corp.* ....................... 1,218,600 74,410,763
--------------
454,745,044
--------------
PHOTO & OPTICAL (0.6%)
Eastman Kodak Co. ................ 672,700 51,629,725
--------------
RETAIL--GENERAL (4.6%)
CompUSA, Inc.*++ (a) ............. 4,087,600 87,883,400
Home Depot, Inc. ................. 1,488,000 102,579,000
Lowe's Cos., Inc. ................ 1,246,400 46,272,600
Sears, Roebuck & Co. ............. 1,433,700 77,061,375
Wal-Mart Stores, Inc. ............ 1,721,000 58,191,313
--------------
371,987,688
--------------
TOTAL CONSUMER CYCLICALS (13.6%) 1,102,120,077
--------------
CONSUMER NONCYCLICALS
DRUGS (5.2%)
Astra AB (A Shares) .............. 3,306,664 $ 61,655,857
Merck & Co., Inc. ................ 2,163,200 223,891,200
Pfizer, Inc. (a) ................. 857,000 102,411,500
Schering Plough Corp. ............ 612,000 29,299,500
--------------
417,258,057
--------------
<PAGE>
HOSPITAL SUPPLIES &
SERVICES (2.5%)
Abbott Laboratories .............. 1,150,000 76,762,500
Boston Scientific Corp.* ......... 471,800 28,986,213
Medtronic, Inc. .................. 997,900 80,829,900
United Healthcare Corp. (a) ..... 298,500 15,522,000
--------------
202,100,613
--------------
TOBACCO (4.6%)
Loews Corp. ...................... 2,068,500 207,108,563
Philip Morris Cos., Inc. (a) .... 3,840,900 170,439,938
--------------
377,548,501
--------------
TOTAL CONSUMER NONCYCLICALS (12.3%) 996,907,171
--------------
CREDIT SENSITIVE
BANKS (5.1%)
Chase Manhattan Corp. ............ 1,712,868 166,255,250
First Chicago NBD Corp. .......... 598,700 36,221,350
First Union Corp. ................ 1,005,000 92,962,500
NationsBank Corp. ................ 1,853,000 119,518,500
--------------
414,957,600
FINANCIAL SERVICES (5.7%)
American Express Co. ............. 2,900,400 216,079,800
Beneficial Corp. ................. 168,000 11,938,500
Household International, Inc. ... 369,800 43,428,388
MBNA Corp. ....................... 2,414,350 88,425,569
Morgan Stanley, Dean Witter,
Discover & Co. .................. 1,113,166 47,935,711
PMI Group, Inc. .................. 823,700 51,378,288
--------------
459,186,256
--------------
INSURANCE (12.6%)
Allstate Corp. ................... 1,701,647 124,220,231
American International Group,
Inc. ............................ 2,340,050 349,544,969
Hartford Financial Services
Group, Inc. ..................... 1,043,600 86,357,900
Progressive Corp. ................ 1,118,800 97,335,600
TIG Holdings, Inc. ............... 689,800 21,556,250
Travelers Group, Inc. ............ 5,435,665 342,786,624
--------------
1,021,801,574
--------------
MORTGAGE RELATED (0.3%)
Federal National Mortgage
Association ..................... 593,000 25,869,625
--------------
REAL ESTATE (2.2%)
CBL & Associates Properties, Inc. 1,077,200 25,852,800
Essex Property Trust, Inc. ...... 202,200 6,495,675
First Industrial Realty Trust ... 108,000 3,159,000
Macerich Co. ..................... 717,500 19,910,625
Manufactured Home Communities ... 268,000 6,180,750
26
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------
Regency Realty Corp.++ ........... 553,700 $ 15,088,325
Simon Debartolo Group, Inc. ..... 1,443,000 46,176,000
Spieker Properties, Inc. ......... 1,307,200 45,997,100
Summit Properties, Inc. .......... 494,100 10,190,813
--------------
179,051,088
--------------
UTILITY--TELEPHONE (1.3%)
BellSouth Corp. .................. 10,824 501,963
Teleport Communications Group,
Inc. (Class A)*++ (a) ........... 2,527,500 86,250,938
U.S. West Media Group* ........... 450,000 9,112,500
--------------
95,865,401
--------------
TOTAL CREDIT SENSITIVE (27.2%) .. 2,196,731,544
--------------
ENERGY
OIL--DOMESTIC (0.3%)
Union Pacific Resources Group,
Inc. ............................ 826,477 20,558,615
--------------
OIL--SUPPLIES & CONSTRUCTION (2.6%)
BJ Services Co.* ................. 845,800 45,356,025
Baker Hughes, Inc. ............... 540,000 20,891,250
Halliburton Co. .................. 812,200 64,366,850
Transocean Offshore, Inc. ........ 700,000 50,837,500
Western Atlas, Inc.* ............. 338,800 24,817,100
--------------
206,268,725
--------------
RAILROADS (2.2%)
Canadian Pacific Ltd. ............ 2,833,300 80,571,969
Union Pacific Corp. .............. 1,513,371 106,692,656
--------------
187,264,625
--------------
TOTAL ENERGY (5.1%) ............. 414,091,965
--------------
TECHNOLOGY
ELECTRONICS (16.0%)
Applied Magnetics Corp.* (a) .... 600,000 13,575,000
Cisco Systems, Inc.* (a) ......... 5,965,000 400,400,625
EMC Corp.* (a) ................... 3,590,900 140,045,100
General Instrument Corp.* ........ 1,222,410 30,560,250
Intel Corp. (a) .................. 2,452,800 347,837,700
Micron Technology, Inc.* (a) .... 880,000 35,145,000
National Semiconductor
Corp.* (a) ...................... 2,399,400 73,481,625
Seagate Technology, Inc.* (a) ... 400,000 14,075,000
3Com Corp.* (a) .................. 5,352,900 240,880,500
--------------
1,296,000,800
--------------
OFFICE EQUIPMENT (3.3%)
Ceridian Corp.*++ ................ 3,815,000 161,183,750
Compaq Computer Corp.* (a) ...... 100,000 9,925,000
Sterling Software, Inc.* ......... 586,200 18,318,750
Xerox Corp. ...................... 957,500 75,522,813
--------------
264,950,313
--------------
OFFICE EQUIPMENT SERVICES (1.6%)
Electronic Data Systems
Corp. (a) ....................... 1,734,000 71,094,000
Fore Systems, Inc.* .............. 391,400 5,332,825
Informix Corp.* (a) .............. 1,151,900 10,367,100
Oracle Corp.* (a) ................ 282,200 14,215,825
Sterling Commerce, Inc.* ......... 933,582 30,691,508
--------------
131,701,258
--------------
TELECOMMUNICATIONS (9.0%)
AirTouch Communications,
Inc.* ........................... 1,259,600 $ 34,481,550
Cabletron Systems, Inc.* (a) .... 1,637,200 46,353,225
Cascade Communications
Corp.* (a) ...................... 2,375,000 65,609,375
DSC Communications
Corp.* (a) ...................... 2,716,100 60,433,225
Deutsche Telekom AG (ADR) ........ 892,600 21,533,975
Mannesmann AG (ADR) .............. 160,700 71,511,500
WorldCom, Inc.* (a) .............. 13,079,004 418,528,121
--------------
718,450,971
--------------
TOTAL TECHNOLOGY (29.9%) ........ 2,411,103,342
--------------
<PAGE>
DIVERSIFIED
MISCELLANEOUS (0.2%)
Anixter International, Inc.* .... 812,434 13,963,709
Hanson (ADR)--Warrants
(Class B)* ...................... 13,784,811 53,899
--------------
TOTAL DIVERSIFIED (0.2%) ........ 14,017,608
--------------
TOTAL COMMON STOCKS AND WARRANTS
(95.1%)
(Cost $5,464,533,046) ........... 7,683,740,293
--------------
PREFERRED STOCKS:
BUSINESS SERVICES (0.1%)
ENVIRONMENTAL CONTROL
Republic Industries, Inc.
6.5% Exch. Conv. ................ 389,000 9,530,500
--------------
TECHNOLOGY (0.7%)
TELECOMMUNICATIONS
WorldCom, Inc.
8.0% Conv. ...................... 487,000 54,604,875
TOTAL PREFERRED STOCKS (0.8%)
(Cost $43,865,319) .............. 64,135,375
--------------
Principal
Amount
-----------
LONG-TERM DEBT SECURITIES:
TECHNOLOGY (0.0%)
ELECTRONICS
3Com Corp.
10.25% Conv., 11/01/01+ ......... $ 900,000 1,246,500
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $1,213,058) .... 1,246,500
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES (0.3%)
Chase Manhattan Bank
5.53%, due 08/18/97 ............. 24,631,953 24,450,334
--------------
CERTIFICATES OF DEPOSIT
American Express Centurian
5.56%, due 07/21/97 ............. 10,000,000 10,000,000
Sanwa Bank Ltd.
5.68%, due 07/10/97 ............. 50,000,000 49,998,900
Sumitomo Bank Ltd.
5.67%, due 07/07/97 ............. 50,000,000 49,998,728
--------------
TOTAL CERTIFICATES OF DEPOSIT (1.4%) 109,997,628
--------------
27
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER
Associates Corp. of North
America
6.3%, due 07/01/97 ........... $ 50,000,000 $ 50,000,000
Bankers Trust Securities
6.3%, due 07/01/97 ........... 38,100,000 38,100,000
Copley Financing Corp.
5.6%, due 07/02/97 ........... 2,300,000 2,299,642
Dresdner U.S. Finance, Inc.
6.25%, due 07/01/97 .......... 18,300,000 18,300,000
Generale Bank
5.39%, due 07/29/97 .......... 16,000,000 15,932,925
Greenwich Funding
5.35%, due 07/01/97 .......... 4,800,000 4,800,000
--------------
TOTAL COMMERCIAL PAPER (1.6%) 129,432,567
--------------
U.S. GOVERNMENT AGENCIES (0.4%)
Federal Farm Credit Bank
5.55%, due 07/01/97 .......... 35,000,000 35,000,000
--------------
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
6.375%, due 07/01/97 ......... 50,000,000 50,000,000
Sumitomo Bank Ltd.
6.25%, due 07/01/97 .......... 42,000,000 42,000,000
--------------
TOTAL TIME DEPOSITS (1.2%) .. 92,000,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (4.9%)
(Amortized Cost
$390,880,529)................. 390,880,529
--------------
TOTAL INVESTMENTS (100.8%)
(Cost/Amortized Cost $5,900,491,952) 8,140,002,697
--------------
Number of
Contracts(b)
----------------------------
CALL OPTIONS WRITTEN* (c):
Applied Magnetics Corp.:
September @ $23 .............. 3,000 (921,000)
September @ $23.625 .......... 3,000 (813,000)
Cabletron Systems, Inc.
September @ $31.50 ........... 2,000 (282,000)
Cascade Communications Corp.:
July @ $26.25 ................ 3,000 (477,000)
July @ $26.625 ............... 3,000 (393,000)
July @ $31.375 ............... 2,000 (50,000)
August @ $34.375 ............. 2,000 (140,000)
August @ $34.75 .............. 2,000 (122,000)
September @ $30 .............. 5,000 (1,268,000)
September @ $34.75 ........... 2,000 (230,000)
October @ $27.75 ............. 1,500 (490,500)
Cisco Systems, Inc.:
August @ $61.625 ............. 3,000 (2,352,000)
August @ $62.375 ............. 3,000 (2,106,000)
August @ $69 ................. 1,500 (670,500)
September @ $64.375 .......... 3,000 (2,088,000)
September @ $67.875 .......... 1,500 (851,520)
Compaq Computer Corp.
August @ $108.375 ............ 1,000 (406,480)
CompUSA, Inc.:
July @ $18.625 ............... 2,500 (735,000)
July @ $19.375 ............... 4,000 (1,128,000)
August @ $21.625 ............. 3,500 (570,500)
August @ $22.125 ............. 2,000 (425,740)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- -----------------------------------------------------------
<S> <C> <C>
August @ $23 ................. 2,000 $ (300,000)
September @ $20.75 ........... 2,000 (568,000)
September @ $21 .............. 2,000 (494,000)
September @ $21.125 .......... 3,000 (708,000)
September @ $21.375 .......... 2,000 (409,940)
September @ $21.875 .......... 2,500 (507,500)
September @ $22 .............. 8,000 (1,374,400)
October @ $21.50 ............. 2,000 (450,000)
CUC International, Inc.:
August @ $24.125 ............. 2,000 (425,740)
August @ $24.625 ............. 2,000 (342,580)
September @ $25.75 ........... 3,000 (563,100)
September @ $25.875 .......... 1,500 (213,735)
September @ $26.125 .......... 7,000 (1,074,400)
September @ $26.375 .......... 2,000 (298,600)
September @ $26.75 ........... 2,000 (220,580)
DSC Communications Corp.:
July @ $20 ................... 2,000 (512,000)
August @ $22.375 ............. 2,000 (372,000)
September @ $24.625 .......... 2,000 (364,000)
September @ $25.375 .......... 2,000 (244,000)
October @ $21.875 ............ 3,000 (690,000)
Electronic Data Systems Corp.:
July @ $33.125 ............... 3,000 (2,430,000)
August @ $36.625 ............. 2,000 (971,480)
August @ $37.375 ............. 2,000 (890,000)
August @ $38 ................. 2,500 (1,047,500)
September @ $37 .............. 2,000 (1,012,000)
September @ $37.875 .......... 2,000 (890,000)
September @ $39.75 ........... 2,000 (595,680)
September @ $42 .............. 1,500 (360,000)
EMC Corp.:
August @ $40 ................. 3,000 (651,000)
August @ $40.75 .............. 2,500 (392,500)
September @ $36.875 .......... 2,000 (816,000)
September @ $37.875 .......... 2,500 (877,500)
September @ $38.875 .......... 2,000 (606,000)
September @ $39.875 .......... 2,000 (546,000)
October @ $38.875 ............ 2,000 (628,000)
Informix Corp.:
August @ $9.125 .............. 2,000 (238,000)
September @ $8.81 ............ 2,000 (306,000)
September @ $9.50 ............ 3,000 (345,000)
September @ $9.625 ........... 2,000 (252,000)
October @ $9.125 ............. 2,500 (345,000)
Intel Corp.:
July @ $147.50 ............... 1,000 (130,000)
July @ $148.25 ............... 2,000 (224,000)
July @ $152.75 ............... 1,000 (221,000)
August @ $158.75 ............. 2,000 (417,120)
August @ $159.75 ............. 2,000 (618,000)
September @ $143.625 ......... 3,000 (3,039,000)
September @ $144.25 .......... 1,500 (1,593,645)
September @ $146 ............. 1,000 (950,780)
September @ $149.375 ......... 2,000 (1,424,000)
October @ $142.75 ............ 2,000 (2,248,000)
Micron Technology, Inc.:
July @ $38.50 ................ 2,000 (510,000)
July @ $40.75 ................ 1,800 (135,090)
September @ $40.125 .......... 2,000 (896,000)
September @ $40.75 ........... 3,000 (1,107,000)
</TABLE>
28
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- -----------------------------------------------------------
National Semiconductor Corp.:
July @ $27.50 ................ 2,500 $ (785,000)
September @ $30.875 .......... 2,000 (618,580)
October @ $30.625 ............ 3,000 (895,200)
Oracle Corp.:
August @ $47.25 .............. 1,500 (823,500)
September @ $52.875 .......... 1,000 (300,000)
Pfizer, Inc.
September @ $121.875 ......... 2,000 (1,566,000)
Philip Morris Cos., Inc.
October @ $44.095 ............ 4,000 (1,388,000)
Republic Industries, Inc.:
July @ $24.375 ............... 2,000 (326,000)
July @ $26.875 ............... 3,000 (117,000)
September @ $20.50 ........... 2,500 (1,352,500)
September @ $24.50 ........... 2,000 (558,940)
September @ $25.375 .......... 3,500 (926,450)
October @ $23.875 ............ 2,000 (502,000)
Seagate Technology, Inc.:
September @ $40.625 .......... 2,000 (372,000)
September @ $40.75 ........... 2,000 (370,000)
Teleport Communications Group,
Inc. (Class A):
August @ $30 ................. 3,500 (1,963,500)
August @ $30.05 .............. 1,500 (789,000)
September @ $30.125 .......... 3,000 (1,773,000)
September @ $33.25 ........... 3,000 $ (1,119,000)
UAL Corp.:
October @ $70.625 ............ 1,500 (763,500)
United Healthcare Corp.:
September @ $53.875 .......... 1,000 (345,000)
September @ $54.25 ........... 1,500 (478,500)
WorldCom, Inc.:
August @ $25.50 .............. 4,000 (2,648,000)
August @ $25.625 ............. 2,000 (1,323,500)
September @ $29 .............. 3,150 (1,351,350)
September @ $31.375 .......... 4,000 (1,176,000)
October @ $31.875 ............ 2,000 (508,000)
3Com Corp.:
July @ $32 ................... 2,500 (3,269,475)
August @ $38.375 ............. 2,000 (1,724,000)
August @ $46 ................. 2,000 (800,000)
August @ $49.875 ............. 1,000 (345,000)
September @ $46.125 .......... 2,000 (1,016,000)
September @ $47.375 .......... 2,000 (926,000)
September @ $49.625 .......... 2,000 (638,000)
---------------
TOTAL CALL OPTIONS WRITTEN (-1.1%)
(Premiums Received $96,759,950) (88,224,105)
---------------
OTHER ASSETS
LESS LIABILITIES (0.3%) ..... 26,390,865
---------------
NET ASSETS (100.0%) ........... $8,078,169,457
===============
- ------------
* 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. At June 30, 1997, these securities amounted to
$1,246,500 or 0.02% of net assets.
++ Affiliated company as defined under the Investment Company Act of
1940 (See Note 6).
(a) Partially held as collateral on outstanding written call options.
(b) One contract relates to 100 shares.
(c) Covered call option contracts written in connection with securities
held.
Glossary:
ADR -- American Depository Receipt
See Notes to Financial Statements.
29
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BASIC MATERIALS
CHEMICALS (1.2%)
Akzo Nobel N.V...................... 19,000 $ 2,603,583
Bayer AG............................ 40,000 1,541,373
Dainippon Ink & Chemical, Inc. ..... 44,000 189,652
GP Batteries International Ltd. .... 850,000 2,532,432
GP Batteries International
Ltd.--Rights*...................... 12,500 6,250
Indo Gulf Fertilisers (GDR)......... 150,000 135,000
Ishihara Sangyo Ltd.*............... 411,000 1,215,679
Johnson Matthey PLC................. 225,000 2,168,688
Mitsubishi Chemical Corp............ 3,000 9,790
Royal Group Technologies Ltd.* ..... 50,000 1,339,657
Sanyo Chemicals..................... 53,000 471,687
Sekisui Chemical Co. Ltd. .......... 4,000 40,485
Shin-Etsu Chemical Ltd. ............ 14,000 371,346
SKW Trostberg AG.................... 45,000 1,504,387
--------------
14,130,009
--------------
CHEMICALS--SPECIALTY (1.1%)
SGL Carbon AG+ ..................... 83,560 11,413,494
UCAR International, Inc.*........... 40,000 1,830,000
--------------
13,243,494
--------------
METALS & MINING (0.5%)
Great Central Mines Ltd............. 408,900 778,642
Plutonic Resources Ltd.............. 50,000 156,295
Randgold Resources Ltd.*+........... 181,800 3,008,790
Toho Titanium*...................... 7,000 106,884
Western Mining Corp. Ltd............ 200,000 1,260,934
Westralian Sands Ltd. .............. 280,000 864,683
--------------
6,176,228
--------------
PAPER (0.5%)
Asia Pacific Resources
International Holdings Ltd. (Class
A)*................................ 70,000 332,500
Enso Oy (Series R).................. 124,000 1,147,414
Fletcher Forestry Shares............ 17,026 24,749
Grupo Industrial Durango (ADR)* .... 70,000 1,067,500
Jefferson Smurfit Group PLC......... 300,000 863,979
Mayr-Melnhof Karton Aktien AG+ .... 24,000 1,232,222
Nippon Paper Industries Co.......... 64,000 370,229
Oji Paper Co. Ltd................... 150,000 927,930
--------------
5,966,523
--------------
STEEL (0.4%)
Acerinox S.A........................ 2,002 375,060
Broken Hill Proprietary Co. Ltd. ... 150,000 2,206,596
Hitachi Metals Ltd.................. 83,000 604,703
Sumitomo Metal Industries........... 712,000 2,025,233
--------------
5,211,592
--------------
TOTAL BASIC MATERIALS (3.7%) ...... 44,727,846
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.7%)
B.U.S. Berzelius Umwelt-Service AG . 87,700 1,332,674
Daiseki Co. Ltd..................... 20,000 418,812
Matsuda Sangyo Co. Ltd.............. 23,000 $ 421,429
Powerscreen International........... 640,000 6,973,095
Rentokil Initial PLC................ 720,000 2,529,012
Tomra Systems ASA................... 320,000 6,556,578
Waste Management, Inc. ............. 50,000 1,606,250
--------------
19,837,850
--------------
<PAGE>
PRINTING, PUBLISHING & BROADCASTING
(2.8%)
Arnoldo Mondadori Editore Spa ...... 10,000 57,746
Carlton Communications PLC.......... 500,000 4,224,176
Comcast Corp. (Class A) SPL......... 37,000 790,875
Elsevier N.V........................ 180,000 3,007,543
Flextech PLC*....................... 69,000 738,577
Liberty Media Group (Class A)* ..... 144,875 3,440,781
Mirror Group Newspapers PLC ....... 250,000 782,409
Nippon Television Network Corp. ... 2,110 846,872
Pearson PLC......................... 200,000 2,315,598
Reed International.................. 260,000 2,519,024
Takara Printing Co.................. 4,000 28,968
TCI Group (Class A)*................ 183,000 2,722,125
Television Francaise................ 1,709 152,675
Tokyo Broadcasting System........... 85,000 1,742,867
TVI Televisao Independente*......... 4,700 12,280
Ver Ned Uitgeversbedr Ver Bezit
N.V................................ 150,000 3,316,244
Viacom, Inc. (Class B)*............. 241,300 7,239,000
--------------
33,937,760
--------------
PROFESSIONAL SERVICES (2.2%)
ADT Ltd.*........................... 161,000 5,313,000
Alvern Norway ASA*.................. 258,529 1,412,555
Apcoa Parking AG.................... 19,580 1,900,851
Asatsu, Inc......................... 54,000 1,997,731
Content Beheer N.V.*+............... 150,000 6,525,513
Goudsmit N.V. ...................... 16,500 2,508,960
Meitec Corp......................... 133,000 3,957,159
NIC Corp.*.......................... 5,000 63,258
Shandwick International PLC* ....... 30,000 24,097
WPP Group PLC....................... 600,000 2,462,091
--------------
26,165,215
--------------
TRUCKING, SHIPPING (1.1%)
Brambles Industries Ltd. ........... 250,000 4,943,879
Cosco Pacific Ltd.*................. 1,000,000 2,316,936
Irish Continental Group............. 140,000 1,591,949
Kawasaki Kisen*..................... 168,000 338,609
Koninklijke Nedlloyd Groep N.V. .... 11,250 324,938
Western Bulk Shipping*.............. 88,080 433,128
Yamato Transport ................... 266,000 3,318,908
--------------
13,268,347
--------------
TOTAL BUSINESS SERVICES (7.8%) .... 93,209,172
--------------
CAPITAL GOODS
AEROSPACE (0.2%)
Loral Space & Communications* ...... 158,000 2,370,000
--------------
BUILDING & CONSTRUCTION (1.4%)
ABB AG ............................. 1,200 1,815,817
Bufete Industrial S.A. (ADR)* ...... 19,000 406,125
Daito Trust Construction Co. ....... 31,600 372,219
30
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------
Hitachi Plant Engineering &
Construction Co.................... 101,000 $ 468,825
Japan Industrial Land Development .. 54,000 532,414
Kajima Corp. ....................... 87,000 509,353
Kaneshita Construction Co. ......... 126,000 983,946
MacMahon Holdings Ltd............... 1,895,200 1,430,971
Metacorp Berhard.................... 335,000 696,811
Mitsui Home Co. Ltd................. 96,000 946,514
Nanno Construction Co. Ltd.......... 53,000 182,663
Nippon Denwa Shisetsu .............. 53,000 455,039
Ohmoto Gumi Co. Ltd................. 61,000 500,305
Oriental Construction Co. .......... 48,300 438,286
Pacific Rim Infra Management
Enterprises Ltd.*.................. 1,116,500 83,587
Penta Ocean Construction............ 37,000 119,449
PS Corp............................. 109,700 1,186,877
Raito Kogyo Co. Ltd. ............... 66,100 686,319
Sacos Corp. ........................ 8,600 78,039
Sanyo Engineering & Construction,
Inc................................ 21,000 182,131
Sho Bond Construction............... 137,300 3,581,947
Suido Kiko Kaisha................... 37,000 219,527
Toda Construction................... 105,000 734,753
Wesco, Inc.......................... 45,100 460,405
--------------
17,072,322
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (1.0%)
BPB PLC............................. 540,000 2,917,054
Fujikura Ltd........................ 276,000 2,576,739
Lafarge Corp........................ 40,000 2,487,791
Macmillan Bloedel Ltd............... 30,000 411,673
Nichiha Corp........................ 182,700 2,869,383
Portland Valderrivas SA............. 12,700 1,037,530
Sumitomo Forestry Co. .............. 24,000 263,851
--------------
12,564,021
--------------
ELECTRICAL EQUIPMENT (0.5%)
Alcatel Alsthom..................... 16,000 2,003,846
Mabuchi Motor Co.................... 43,600 2,529,797
Vae Eisenbahnsys AG................. 3,000 296,565
Yaskawa Electric Corp............... 91,000 377,943
Zucchini Spa........................ 30,400 185,915
--------------
5,394,066
--------------
MACHINERY (2.3%)
Asahi Diamond Industry Co. Ltd. ... 91,000 841,637
BT Industries AB+ .................. 4,300 86,302
Construcciones Auxiliar Ferro ...... 9,425 425,278
Danieli & Co.*...................... 32,200 212,639
Enshu*.............................. 60,000 188,989
IHC Caland N.V...................... 52,000 2,842,291
Ishikawajima Harima Heavy
Industries......................... 171,000 671,407
Kalmar Industries AB+ .............. 69,200 1,187,254
Kawasaki Heavy Industries Ltd. ..... 277,000 1,288,203
Keppel Corp.*....................... 95,000 421,942
Keyence Corp. ...................... 7,500 1,112,468
Makino Milling Machine Co. ......... 46,000 392,933
Mitsubishi Heavy Industries Ltd. ... 476,000 3,650,676
Namura Shipbuilding Co.............. 66,000 $ 328,244
Nireco.............................. 24,000 215,688
Nitta Corp.......................... 121,000 1,488,614
Nitto Kohki Co. Ltd................. 81,600 2,819,440
Rauma Oy............................ 41,600 954,327
Siebe PLC........................... 80,000 1,354,400
SMC Corp............................ 42,100 3,555,780
Sodick Co.*......................... 374,000 3,038,077
Sumitomo Heavy Industries Ltd. ..... 30,000 121,194
Thai Engine Manufacturing Public
Co................................. 87,000 564,215
--------------
27,761,998
--------------
TOTAL CAPITAL GOODS (5.4%)......... 65,162,407
--------------
<PAGE>
CONSUMER CYCLICALS
AIRLINES (1.2%)
Air Canada*......................... 100,000 673,449
British Airways..................... 150,000 1,709,231
Continental Airlines, Inc. (Class
B)*................................ 60,000 2,096,250
Delta Air Lines, Inc................ 27,500 2,255,000
KLM................................. 100,000 3,081,917
Northwest Airlines Corp. (Class
A)*................................ 36,300 1,320,413
Qantas Airways Ltd.................. 15,000 35,110
Singapore Airlines Ltd. ............ 200,000 1,790,585
UAL Corp.*.......................... 22,600 1,617,313
--------------
14,579,268
--------------
APPAREL, TEXTILE (0.5%)
Adidas AG+.......................... 12,840 1,435,747
Carli Gry International A/S......... 30,000 1,707,947
First Sign International Holdings
Ltd................................ 1,330,000 257,509
King Co............................. 55,000 206,352
Morishita Co. Ltd................... 5,000 28,357
PT Great River International* ...... 3,150,000 1,975,226
Renown, Inc.*....................... 22,000 54,707
--------------
5,665,845
--------------
AUTO RELATED (1.2%)
Asahi Glass Co. Ltd................. 73,000 726,115
Autoliv, Inc.*...................... 47,700 1,866,263
Bridgestone Metalpha ............... 6,000 52,875
FCC Co. Ltd......................... 19,000 480,761
Gerresheimer Glas AG................ 12,000 201,273
LucasVarity PLC..................... 800,000 2,770,061
Michelin (CGDE), (Class B).......... 45,000 2,702,282
Minebea Co.......................... 267,000 2,842,160
NGK Spark Plug Co................... 135,000 1,472,385
Republic Industries, Inc.*.......... 71,000 1,766,125
Toyoda Gosei........................ 11,000 76,782
--------------
14,957,082
--------------
AUTOS & TRUCKS (0.8%)
AutoZone, Inc.*..................... 83,600 1,969,825
Honda Motor Corp.................... 106,000 3,190,821
Isuzu Motors Ltd.................... 115,000 396,344
Seat Spa*........................... 40,000 12,890
Toyota Motor Corp................... 123,000 3,627,432
--------------
9,197,312
--------------
31
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------
FOOD SERVICES, LODGING (0.9%)
AAPC Ltd. .......................... 1,500,000 $ 996,666
Accor SA............................ 25,000 3,743,598
International Fast Food Corp.* ..... 8,000 1,040
Jurys Hotel Group PLC............... 400,000 2,031,630
QPQ Corp.*.......................... 32,700 4,088
QPQ Corp.--Warrants*................ 32,700 1,022
Restaurant Brands NZ Ltd.*.......... 200,100 347,950
Sanyo Pax Co. Ltd................... 50,000 785,272
Scandic Hotels AB*+................. 4,100 64,769
Selecta Group*...................... 11,200 1,702,431
Thistle Hotels PLC.................. 249,200 657,527
--------------
10,335,993
--------------
HOUSEHOLD FURNITURE, APPLIANCES (0.6%)
Hunter Douglas N.V.................. 30,000 2,552,133
Industrie Natuzzi (ADR)............. 113,000 2,895,625
Sanyo Electric Co. Ltd.............. 307,000 1,376,826
Sharp Corp.......................... 21,000 289,504
--------------
7,114,088
--------------
LEISURE RELATED (3.9%)
Capcom Co. Ltd...................... 6,500 154,829
Cinar Films, Inc. (Class B)* ....... 48,000 1,560,000
CUC International, Inc.*............ 874,000 22,560,125
Enix Corp........................... 2,900 74,391
Imagineer Co. Ltd.*................. 40,400 1,357,124
ITT Corp.*.......................... 71,000 4,335,438
KTM Motorradholding AG*............. 17,780 1,217,162
Ladbroke Group PLC.................. 550,000 2,151,625
Mars Engineering Corp............... 32,900 752,098
Namco Ltd. ......................... 40,900 1,577,332
Nelvana Limited*+ .................. 130,000 1,882,762
Nintendo Co. ....................... 28,200 2,362,098
Nippon Broadcast System............. 21,000 2,327,022
Rank Group PLC...................... 100,000 633,418
Tag Heuer International SA (ADR)* .. 143,200 2,156,950
Toei Co............................. 45,000 308,219
Tourism Holdings Ltd................ 600,000 851,780
--------------
46,262,373
--------------
PHOTO & OPTICAL (0.5%)
Luxottica Group (ADR)............... 20,000 1,356,250
Noritsu Koki Co. Ltd................ 102,000 5,028,357
--------------
6,384,607
--------------
RETAIL--GENERAL (4.4%)
Asda Group PLC...................... 400,000 825,691
BAA PLC............................. 100,000 921,411
Carpetright PLC*.................... 20,000 166,304
Centros Comerciales Pryca SA ....... 50,000 1,082,258
CompUSA, Inc.*...................... 385,700 8,292,550
Deodeo Corp......................... 8,300 162,220
Dixons Group PLC.................... 450,000 3,498,367
Doshisha Co. ....................... 37,000 416,456
Eiden Sakakiya Co. Ltd. ............ 75,000 628,217
Gucci Group N.V..................... 10,000 643,750
Homac Corp. ........................ 33,300 473,597
Home Centers Ltd.*.................. 142,800 821,100
Home Depot, Inc..................... 110,400 7,610,700
Home Wide Corp., Inc................ 18,000 132,711
<PAGE>
House of Fraser PLC................. 750,000 $ 1,972,670
Isetan Co........................... 194,000 2,403,630
Japan Airport Terminal Co........... 181,800 2,204,886
Matsuyadenki Co. Industries......... 3,000 26,699
MFI Furniture PLC................... 100,000 224,735
Nissen Corp. Ltd.*.................. 20,500 78,165
Paris Miki, Inc..................... 100,700 2,960,989
Rinascente.......................... 140,000 777,565
Rinascente--Rights*................. 170,800 29,930
Rinascente--Warrants*............... 8,750 4,322
Sato Corp. ......................... 139,010 2,450,050
Sears, Roebuck & Co. ............... 41,700 2,241,375
Sriwani Holdings BHD................ 680,000 1,414,422
St. Dupont*......................... 6,214 167,069
St. Dupont*+........................ 64,400 1,731,448
Swank International Manufacturing .. 1,000,000 108,425
Thorn PLC........................... 500,000 1,431,642
Vendex International N.V. .......... 14,400 788,563
Wal-Mart Stores, Inc................ 120,000 4,057,500
Warehouse Group Ltd. ............... 400,000 1,192,763
Xebio Co............................ 20,200 497,025
--------------
52,439,205
--------------
TOTAL CONSUMER CYCLICALS (14.0%) 166,935,773
--------------
CONSUMER NONCYCLICALS
BEVERAGES (1.5%)
Aguas de Barcelona*................. 900 36,335
Bass Breweries...................... 180,000 2,196,405
Grand Metropolitan.................. 300,000 2,904,069
Guinness PLC........................ 600,000 5,873,062
Hartwall Oy AB...................... 9,000 521,368
Lion Nathan Ltd..................... 350,000 886,761
Louis Dreyfus Citrus*............... 71,500 2,670,589
Panamerican Beverages............... 60,000 1,972,500
Quilmes Industrial Quins (ADR) ..... 100,000 1,162,500
--------------
18,223,589
--------------
DRUGS (5.4%)
Astra AB (A Shares)................. 90,000 1,678,135
Biogen, Inc.*....................... 54,000 1,829,250
Hafslund ASA (B Shares)............. 80,000 434,920
Merck & Co., Inc.................... 122,100 12,637,350
Novartis AG......................... 1,358 2,170,197
Novartis AG (ADR)................... 20,000 1,600,988
Novo-Nordisk A/S (B Shares) ....... 35,000 3,816,524
Nycomed ASA (B Shares).............. 50,000 713,711
Orion-Yhtymae Oy (B Shares)......... 50,000 1,896,934
Pfizer, Inc......................... 49,000 5,855,500
Roche Holdings AG Genusscheine ..... 800 7,233,139
Sankyo Co........................... 193,000 6,483,291
Santen Pharmaceutical Co............ 147,000 2,962,830
Schering Plough Corp................ 36,000 1,723,500
Smith & Nephew PLC*................. 275,000 764,513
Smithkline Beecham PLC.............. 200,000 3,680,652
Taisho Pharmaceutical Co............ 107,000 2,884,827
Zeneca Group PLC.................... 180,000 5,950,970
--------------
64,317,231
--------------
32
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------
FOODS (0.7%)
Fyffes PLC.......................... 3,400,000 $ 4,897,139
Karlshamns AB*+..................... 20,300 239,199
Nestle AG........................... 500 659,363
Nutricia Verenigde Bedrijven N.V.+ 5,000 789,582
Oie Sangyo Co. Ltd. ................ 4,000 39,787
Shriram Industrial Enterprises Ltd.
(GDR)*+ ........................... 165,000 288,750
Viscofan Envoltura.................. 60,000 1,402,526
Waterford Foods PLC................. 225,000 467,351
--------------
8,783,697
--------------
HOSPITAL SUPPLIES & SERVICES (1.1%)
Abbott Laboratories................. 38,500 2,569,875
Boston Scientific Corp.*............ 60,900 3,741,544
Cochlear Ltd........................ 45,000 146,102
Coloplast A/S B..................... 1,200 80,066
Medtronic, Inc...................... 57,400 4,649,400
Nichii Gakkan Co.*.................. 3,000 167,525
Quest Medical, Inc.*................ 164,543 1,501,455
Scandinavian Mobility
International, Inc................. 10,000 107,688
--------------
12,963,655
--------------
RETAIL--FOOD (0.6%) ................
Casino Guichard-Perrachon........... 13,590 672,713
Daimon Co. Ltd...................... 37,900 257,605
Familymart Co....................... 8,500 416,805
Kesko .............................. 150,800 2,127,990
Loblaw Companies Ltd................ 50,000 687,932
McBride PLC......................... 350,000 789,484
Seven-Eleven Japan Ltd.............. 24,000 1,813,454
--------------
6,765,983
--------------
SOAPS & TOILETRIES (0.0%)
Shiseido Co......................... 11,000 181,398
--------------
TOBACCO (2.4%)
Imperial Tobacco PLC*............... 300,000 1,930,220
Loews Corp.......................... 97,800 9,792,225
Philip Morris Cos., Inc. ........... 180,000 7,987,500
RJ Reynolds BHD..................... 240,000 599,049
Seita............................... 63,900 2,022,462
Swedish Match Co. AB................ 1,100,000 3,703,291
Tabacalera SA....................... 40,000 2,146,875
--------------
28,181,622
--------------
TOTAL CONSUMER NONCYCLICALS (11.7%) 139,417,175
--------------
CREDIT SENSITIVE
BANKS (5.1%)
Akita Bank.......................... 74,000 431,306
AMMB Holdings BHD................... 30,000 186,609
Asahi Bank Ltd...................... 162,000 1,378,152
Banco Comercial Portugues, SA ...... 10,000 188,804
Banco Latinoamericano de
Exportaciones S.A. (E Shares) ..... 60,000 2,587,500
Banco Popular....................... 2,800 685,860
Banco Santander--Chile (ADR) ....... 13,000 191,750
Barclays Bank ...................... 80,000 1,587,458
Bank of Tokyo-Mitsubishi Bank ...... 290,000 5,819,737
BHW Holding AG*..................... 131,000 2,216,010
Chase Manhattan Corp................ 100,488 9,753,617
Dai-Ichi Kangyo Bank................ 326,000 $ 4,437,309
First Union Corp.................... 58,000 5,365,000
Grupo Financiero Banamex Accival (B
Shares)*........................... 400,000 1,079,789
Grupo Financiero Bantorte (Class
B)*................................ 178,750 185,814
Hachijuni Bank...................... 52,000 526,307
HSBC Holdings PLC (H.K.$)........... 70,000 2,105,250
Mitsubishi Trust & Banking Corp. .. 164,000 2,590,001
NationsBank Corp.................... 107,000 6,901,500
Overseas Chinese Bank............... 48,000 496,887
Overseas Union Bank Ltd............. 180,000 1,120,515
Overseas Union Bank Ltd.--Rights* .. 36,000 19,640
Shizuoka Bank....................... 188,000 2,148,853
Sparbanken Sverige AB (A Shares) ... 36,000 801,775
Standard Chartered PLC.............. 150,000 2,287,298
Sumitomo Bank Ltd................... 295,000 4,839,019
Toho Bank .......................... 96,000 590,524
Union Bank of Norway................ 8,600 256,089
--------------
60,778,373
--------------
<PAGE>
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ------------- --------------
FINANCIAL SERVICES (4.6%)
American Express Co................. 182,600 13,603,700
Americredit Corp.*.................. 206,700 4,340,700
Amvescap PLC........................ 380,000 2,217,214
CMIC Finance & Securities Co. Ltd. 724,700 181,839
Credit Saison Co. .................. 218,535 5,338,958
Dexia France........................ 22,000 2,141,338
Hong Leong Finance Ltd. ............ 160,000 337,973
Household International, Inc. ...... 25,500 2,994,656
JCG Holdings........................ 142,000 114,556
MBNA Corp........................... 160,000 5,860,000
Morgan Stanley, Dean Witter,
Discover & Co...................... 71,800 3,091,888
Nichiei Co. Ltd. ................... 37,500 4,351,715
PMI Group, Inc...................... 20,500 1,278,688
Promise Co. Ltd..................... 29,200 1,671,338
PT Bunas Finance Indonesia.......... 460,000 671,464
Sanyo Shinpan Finance Co. Ltd. ..... 25,900 1,602,225
Takefuji Corp....................... 69,850 3,815,208
Yamaichi Securities................. 314,000 934,247
--------------
54,547,707
--------------
INSURANCE (5.2%)
Acceptance Industries Cos., Inc.* .. 100,100 2,277,275
Aegon N.V........................... 50,000 3,489,443
American International Group, Inc. . 96,250 14,377,344
AMEV N.V............................ 90,000 4,007,001
Corporacion Mapfre Cia Inter SA .... 60,000 3,191,814
Koa Fire & Marine................... 46,000 278,143
Mediolanum Spa Ord+ ................ 90,000 1,014,546
Norwich Union PLC*.................. 379,700 2,019,517
Pacific & Orient BHD................ 220,000 522,979
PennCorp Financial Group, Inc. ..... 34,100 1,312,850
Progressive Corp. .................. 56,500 4,915,500
QBE Insurance Group Ltd. ........... 12,521 75,632
Skandia Forsakrings AB.............. 45,000 1,660,654
33
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------
Sumitomo Marine & Fire Insurance
Co. ............................... 140,000 $ 1,148,242
Travelers Group, Inc................ 283,133 17,855,075
Twentieth Century Industries ....... 211,000 4,431,000
--------------
62,577,015
--------------
REAL ESTATE (2.9%)
Arden Realty Group, Inc. ........... 98,500 2,561,000
Castellum AB*....................... 517,360 3,885,462
Cheung Kong Holdings................ 90,000 888,697
Chubu Sekiwa Real Estate ........... 24,000 255,475
City Developments Ltd............... 140,000 1,370,917
Daibiru Corp........................ 38,000 457,552
JP Realty, Inc...................... 87,300 2,368,013
Macerich Co. ....................... 151,700 4,209,675
MEPC PLC............................ 210,000 1,723,464
Mitsubishi Estate Co................ 129,000 1,868,423
Pernas International Hotels &
Properties*........................ 800,000 665,610
Prentiss Properties Trust........... 85,000 2,178,125
Sap Holdings*....................... 66,000 149,049
Singapore Land Ltd.................. 250,000 1,136,602
Sino Land Co........................ 2,000,000 2,168,497
Spieker Properties, Inc............. 58,700 2,065,506
Storage USA, Inc.................... 28,000 1,071,000
Sumitomo Realty & Development Co. .. 411,000 3,621,935
Summit Properties, Inc.............. 47,000 969,375
Sun Communities, Inc................ 41,000 1,376,063
--------------
34,990,440
--------------
UTILITY--ELECTRIC (2.4%)
British Energy PLC.................. 1,672,000 4,077,649
Electricidade de Portugal*.......... 127,005 2,330,097
Energy Group PLC*................... 50,000 533,536
Enersis S.A. (ADR).................. 45,000 1,600,313
EVN................................. 8,394 1,080,845
Gas Y Electridad SA (Series 2) ..... 5,000 268,359
Hidroelectrica del Cantabrico ...... 48,000 1,947,658
Iberdrola SA........................ 350,000 4,417,243
Korea Electric Power (ADR).......... 100,000 1,868,750
National Grid Group PLC............. 1,000,000 3,654,017
National Power PLC.................. 450,000 3,910,380
Veba AG............................. 60,000 3,388,956
--------------
29,077,803
--------------
UTILITY--GAS (0.3%)
General de Aguas d'Barcelona ....... 90,000 3,682,393
--------------
UTILITY--TELEPHONE (1.5%)
Empresas Telex--Chile S.A. (ADR) ... 77,500 435,938
Hellenic Telecommunication
Organization SA*................... 48,880 1,147,677
Hellenic Telecommunication
Organization SA--Rights*........... 48,880 0
Kon. PTT Nederland+ ................ 50,000 1,961,220
Portugal Telecom SA................. 8,380 337,950
PT Indonesian Satellite (ADR) ...... 40,000 1,197,500
Stet Societa Finanz Telefon......... 40,000 232,864
Telefonica de Espana SA............. 100,000 2,890,546
Telephone & Data Systems, Inc. ..... 56,700 2,151,056
Teleport Communications Group, Inc.
(Class A)*......................... 117,000 $ 3,992,625
Videsh Sanchar Nigam Ltd. (GDR)*+ . 148,000 2,934,100
--------------
17,281,476
--------------
TOTAL CREDIT SENSITIVE (22.0%) .... 262,935,207
--------------
ENERGY
COAL & GAS PIPELINES (0.4%)
OMV AG.............................. 37,200 4,762,431
--------------
OIL--INTERNATIONAL (0.7%)
Canadian Occidental................. 10,000 225,000
ENI Spa............................. 500,000 2,829,943
Orogen Minerals Ltd. ............... 280,000 801,259
Renaissance Energy Ltd.*............ 80,000 2,224,556
Repsol SA........................... 65,000 2,747,715
--------------
8,828,473
--------------
<PAGE>
OIL--SUPPLIES & CONSTRUCTION (2.6%)
Baker Hughes, Inc................... 42,000 1,624,875
BJ Services Co.*.................... 50,000 2,681,250
Bouygues Offshore SA (ADR).......... 148,000 1,850,000
Coflexip (ADR)...................... 70,117 2,112,275
Compagnie Generale de Geophysique
(ADR)*............................. 281,000 5,409,250
Halliburton Co...................... 52,900 4,192,325
Nabors Industries, Inc.*............ 180,600 4,515,000
Santa Fe International Corp.* ...... 81,000 2,754,000
Transocean Offshore, Inc............ 56,000 4,067,000
Tubos de Acero de Mexico SA (ADR)* . 112,400 2,072,375
--------------
31,278,350
--------------
RAILROADS (0.8%)
Canadian Pacific Ltd................ 108,400 3,082,625
Union Pacific Corp.................. 87,633 6,178,127
--------------
9,260,752
--------------
TOTAL ENERGY (4.5%)................ 54,130,006
--------------
TECHNOLOGY
ELECTRONICS (7.9%)
Applied Magnetics Corp.*............ 110,700 2,504,588
Austria Mikro Systeme International 4,000 339,024
Cisco Systems, Inc.*................ 365,300 24,520,747
EMC Corp.*.......................... 160,000 6,240,000
Enplas Corp......................... 56,000 1,021,202
Fujimi, Inc......................... 6,100 399,712
Hirose Electric Co. Ltd............. 3,300 226,315
Hoya Corp........................... 117,000 5,206,352
Intel Corp.......................... 144,500 20,491,906
Micron Technology, Inc.*............ 23,000 918,563
National Semiconductor Corp.* ...... 76,000 2,327,500
Navia ASA*.......................... 80,000 327,829
Pace Micro Technology PLC........... 350,000 390,372
Rohm Co. Ltd........................ 22,000 2,265,073
SGS-Thomson Microelectronics N.V.* . 30,000 2,368,676
Shinko Electric Industries.......... 77,500 2,833,304
TDK Corp............................ 54,000 3,962,481
Tokyo Electron...................... 26,900 1,286,205
34
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------
Towa Corp.*......................... 7,000 $ 295,000
Yamaichi Electronics Co.*........... 27,000 716,168
Yokogawa Electric Corp.............. 474,000 4,115,086
3Com Corp.*......................... 259,700 11,686,500
--------------
94,442,603
--------------
OFFICE EQUIPMENT (1.9%)
Canon, Inc.......................... 41,000 1,116,133
Ceridian Corp.*..................... 302,700 12,789,075
Ricoh Elemex Corp. ................. 27,000 351,016
Sterling Software, Inc.*............ 286,600 8,956,250
--------------
23,212,474
--------------
OFFICE EQUIPMENT SERVICES (1.7%)
Accugraph Corp. (Class A)*.......... 6,200 5,837
Fore Systems, Inc.*................. 65,500 892,438
Fuji Soft Corp...................... 40,600 1,771,224
Istar Internet, Inc.*+.............. 12,500 17,651
Microsoft Corp.*.................... 52,500 6,634,688
Misys PLC........................... 130,000 2,948,600
Sterling Commerce, Inc.*............ 236,660 7,780,198
Turbon International AG............. 27,500 835,770
--------------
20,886,406
--------------
TELECOMMUNICATIONS (5.7%)
BCE Mobile Communications, Inc.* ... 16,000 497,049
Brooks Fiber Properties, Inc.* ..... 159,500 5,383,125
Cabletron Systems, Inc.*............ 58,400 1,653,450
Cascade Communications Corp.* ...... 81,000 2,237,625
Corecomm, Inc.*..................... 7,600 131,100
DDI Corp. .......................... 400 2,952,622
Deutsche Telekom AG (ADR)........... 190,000 4,583,750
E.R.G. Limited...................... 2,167,360 2,454,698
Filtronic Comtek PLC................ 1,199,000 7,904,062
NetCom Systems AB (B Shares)* ...... 100,000 1,411,394
Rogers Cantel Mobile Communications
(Class B)*......................... 20,000 376,552
SK Telecom Co. Ltd.................. 362,560 3,648,260
Tadiran Telecommunications Ltd. .... 175,000 3,773,438
United States Cellular Corp.* ...... 38,600 1,143,525
Vodafone Group...................... 900,000 4,382,323
WorldCom, Inc.*..................... 798,404 25,548,928
--------------
68,081,901
--------------
TOTAL TECHNOLOGY (17.2%)........... 206,623,384
--------------
DIVERSIFIED
MISCELLANEOUS (1.2%)
BTR PLC............................. 200,000 684,192
Cie Generale des Eaux............... 30,000 3,843,994
Compagnie Generale de
Eaux--Warrants*.................... 30,000 17,969
Corp Financiera Reunida SA*......... 94,202 396,298
Crean (James) PLC--Units............ 385,000 1,155,755
Hanson PLC.......................... 62,500 310,571
Holding di Partecipazioni
Industriali Spa*................... 360,000 172,531
Indonesia Fund, Inc.*............... 20,000 217,500
International UNP Holdings*......... 450,000 57,026
International UNP
Holdings--Warrants*................ 225,000 0
Mitsubishi Corp..................... 29,000 361,836
Sime Darby BHD...................... 800,000 $ 2,662,441
Swire Pacific Ltd. (Class A) ....... 80,000 720,251
Taiwan Fund......................... 40,000 1,010,000
Tomkins PLC......................... 500,000 2,164,110
--------------
TOTAL DIVERSIFIED (1.2%)........... 13,774,474
--------------
TOTAL COMMON STOCKS (87.5%) (Cost
$841,896,283)...................... 1,046,915,444
--------------
PREFERRED STOCKS:
CONSUMER CYCLICALS
LEISURE RELATED (0.1%)
Village Roadshow Ltd. .............. 440,000 1,112,943
--------------
RETAIL--GENERAL (0.0%)
Fielmann AG......................... 7,000 212,742
--------------
TOTAL CONSUMER CYCLICALS (0.1%) 1,325,685
--------------
CONSUMER NONCYCLICALS (0.1%)
HOSPITAL SUPPLIES & SERVICES
Fresenius AG........................ 4,444 1,010,532
--------------
TECHNOLOGY
TELECOMMUNICATIONS (0.5%)
Nokia Oy Cum........................ 44,000 3,290,255
WorldCom, Inc.
8.0% Conv.......................... 22,000 2,466,750
--------------
TOTAL TECHNOLOGY (0.5%)............ 5,757,005
--------------
TOTAL PREFERRED STOCKS (0.7%)
(Cost $4,181,207).................. 8,093,222
--------------
LONG-TERM DEBT SECURITIES:
CONSUMER NONCYCLICALS (0.1%)
FOODS
Burns Philp & Co., Ltd.
5.5% Conv., 04/30/04............... $2,000,000 1,722,000
--------------
CREDIT SENSITIVE (0.0%)
INSURANCE
Corporacion Mapfre
8.5% Conv., 02/27/99............... 29,910,000 202,949
--------------
TECHNOLOGY
ELECTRONICS (0.5%)
Altera Corp.
5.75% Conv. Sub. Note, 06/15/02+ .. 1,055,000 2,154,837
3Com Corp.
10.25% Conv., 11/01/01+............ 3,000,000 4,155,000
--------------
TOTAL TECHNOLOGY (0.5%)............ 6,309,837
--------------
DIVERSIFIED (0.1%)
MISCELLANEOUS
Brierley Investment Ltd.
9.0% Conv. Sub. Note, 06/30/98 .... 27,900 27,290
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.7%)
(Amortized Cost $7,058,328) ....... 8,262,076
--------------
</TABLE>
35
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Chase Manhattan Bank
5.6%, due 09/29/97............ $ 5,000,000 $ 4,929,125
Deutsche Bank Financial, Inc.
5.55%, due 08/19/97........... 17,000,000 16,871,579
--------------
TOTAL BANKERS' ACCEPTANCES (1.8%) 21,800,704
--------------
CERTIFICATES OF DEPOSIT
American Express Centurian
5.56%, due 07/21/97........... 10,000,000 10,000,000
Norinchuckin Bank Ltd.
5.78%, due 07/10/97........... 15,000,000 15,000,306
--------------
TOTAL CERTIFICATES OF DEPOSIT (2.1%) 25,000,306
--------------
COMMERCIAL PAPER (0.6%)
Province of Quebec
5.57%, due 07/21/97........... 7,600,000 7,576,482
--------------
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
6.375%, due 07/01/97.......... $21,200,000 $ 21,200,000
Sumitomo Bank Ltd.
6.25%, due 07/01/97........... 40,400,000 40,400,000
--------------
TOTAL TIME DEPOSITS (5.1%) ... 61,600,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (9.6%)
(Amortized Cost
$115,978,367)................. 115,977,492
--------------
TOTAL INVESTMENTS (98.5%)
(Cost/Amortized Cost $969,114,185) 1,179,248,234
OTHER ASSETS
LESS LIABILITIES (1.5%)....... 17,550,254
--------------
NET ASSETS (100.0%)............ $1,196,798,488
==============
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS BY
GLOBAL REGION
As a Percentage of Total
Investments
<S> <C>
Canada................... 0.8%
France .................. 3.1
Germany ................. 2.7
Japan.................... 16.5
Latin America............ 1.8
Netherlands ............. 3.2
New Zealand & Australia . 1.9
Scandinavia.............. 3.6
Southeast Asia........... 3.4
Spain ................... 2.3
Switzerland ............. 1.5
United Kingdom........... 10.4
United States**.......... 47.0
Other European
Countries............... 1.8
-------
100.0%
=======
</TABLE>
- ------------
* Non-income producing.
** Includes Short-Term Debt Securities of 9.8%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1997, these securities amounted to $42,123,186 or
3.5% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
36
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
ARGENTINA
KTM Motorradholding AG* ........... 10,000 $ 684,568
Quilmes Industrial Quins (ADR) .... 17,600 204,600
--------------
TOTAL ARGENTINA (0.4%) ........... 889,168
--------------
AUSTRALIA
AAPC Ltd. ......................... 180,000 119,600
Aristocrat Leisure Ltd. ........... 160,000 317,725
Brambles Industries Ltd. .......... 60,000 1,186,531
Broken Hill Proprietary Co. Ltd. .. 30,000 441,319
Cochlear Ltd. ..................... 60,000 194,803
E.R.G. Limited .................... 820,000 928,712
GIO Australia Holdings Ltd. ...... 200,000 619,141
Great Central Mines Ltd. .......... 100,000 190,424
National Australia Bank Ltd. ..... 4,900 70,184
News Corp. Ltd. ................... 5,900 28,288
Oil Search Ltd. ................... 460,000 1,250,363
Orogen Minerals Ltd. (GDS)+ ...... 55,000 1,573,897
Plutonic Resources Ltd. ........... 20,000 62,518
QBE Insurance Group Ltd. .......... 65,651 396,558
QCT Resources, Inc. ............... 200,000 246,146
Reinsurance Australia Corp. ...... 34,600 104,760
Spectrum Network Systems Ltd.*+ ... 600,000 144,970
Western Mining Corp. Ltd. ......... 22,000 138,703
Westralian Sands Ltd. ............. 11,472 35,427
--------------
TOTAL AUSTRALIA (3.7%) ........... 8,050,069
--------------
AUSTRIA
EVN ............................... 800 103,011
VA Technologie AG ................. 3,000 548,693
--------------
TOTAL AUSTRIA (0.3%) ............. 651,704
--------------
BELGIUM
Electrabel ........................ 250 53,569
Generale de Banque ................ 120 46,190
Petrofina SA ...................... 110 41,653
Tractebel Investment International
Capital .......................... 70 29,181
Tractebel Investment International
Capital--Warrants* ............... 70 0
--------------
TOTAL BELGIUM (0.0%) ............. 170,593
--------------
BRAZIL (0.2%)
Panamerican Beverages ............. 10,000 328,750
--------------
CANADA
Accugraph Corp. (Class A)* ........ 5,000 4,707
Architel Systems Corp.* ........... 30,300 162,366
BCE Mobile Communications,
Inc.* ............................ 4,000 124,262
Cinar Films, Inc. (Class B)* ..... 8,000 260,000
Loblaw Companies Ltd. ............. 20,000 275,173
Prime Resource Group .............. 20,000 144,828
Renaissance Energy Ltd.* .......... 25,000 695,174
Rofin-Sinar Technologies, Inc.* .. 40,000 765,000
Transat A.T., Inc.* ............... 35,000 272,457
--------------
TOTAL CANADA (1.2%) .............. 2,703,967
--------------
CHILE
Empresas Telex-Chile S.A. (ADR) .. 20,000 $ 112,500
Enersis S.A. (ADR) ................ 1,000 35,563
Santa Isabel S.A. (ADR) ........... 10,000 322,500
--------------
TOTAL CHILE (0.2%) ............... 470,563
--------------
DENMARK
Carli Gry International A/S ...... 15,600 888,132
Coloplast A/S B ................... 6,000 400,328
Den Danske Bank ................... 400 38,918
Novo-Nordisk A/S (B Shares) ...... 5,000 545,218
Scandinavian Mobility
International, Inc. .............. 5,000 53,844
--------------
TOTAL DENMARK (0.9%) ............. 1,926,440
--------------
<PAGE>
FINLAND
Hartwall Oy AB .................... 14,000 811,016
KCI Konecranes International ..... 18,000 791,160
Kesko ............................. 56,000 790,235
Nokia Corp. (ADR) ................. 3,000 221,250
Orion-Yhtymae Oy (B Shares) ...... 20,000 758,774
Rauma Oy .......................... 13,900 318,874
--------------
TOTAL FINLAND (1.7%) ............. 3,691,309
--------------
FRANCE
Accor SA .......................... 8,000 1,197,951
Alcatel Alsthom ................... 3,500 438,341
Banque Nationale de Paris* ........ 700 28,850
Bouygues Offshore SA (ADR) ........ 40,000 500,000
BSN Gervais Danone ................ 500 82,614
Carrefour ......................... 225 163,408
Cie de St. Gobain* ................ 250 36,458
Cie Fin Paribas Series A .......... 750 51,815
Cie Generale des Eaux ............. 7,000 896,932
Coflexip (ADR) .................... 3,000 90,375
Compagnie Generale de
Eaux--Warrants* .................. 6,000 3,594
Compagnie Generale de Geophysique
(ADR)* ........................... 117,600 2,263,800
Dexia France ...................... 1,000 97,334
Elf Aquitaine ..................... 2,250 242,738
Havas ............................. 350 25,222
Lafarge Corp. ..................... 10,355 644,027
L'Air Liquide SA .................. 550 87,319
L'Oreal* .......................... 495 208,556
Louis Dreyfus Citrus* ............. 20,300 758,223
Louis Vuitton Moet Hennessy ...... 500 134,429
Lyonnais des Eaux Dumez ........... 400 40,295
Michelin (CGDE), (Class B) ........ 7,000 420,355
Peugeot SA ........................ 250 24,163
Pinault Printemps ................. 150 72,081
Promodes .......................... 100 38,950
Schneider SA ...................... 800 42,582
Seita ............................. 15,000 474,756
SGS-Thomson Microelectronics N.V.* 8,000 631,647
Societe Generale .................. 550 61,395
St. Dupont*+ ...................... 34,900 938,316
Television Francaise .............. 6,000 536,015
--------------
TOTAL FRANCE (5.1%) .............. 11,232,541
--------------
37
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
GERMANY
Adidas AG+ ........................ 3,430 $ 383,537
Allianz AG Holding ................ 1,500 313,951
Apcoa Parking AG .................. 800 77,665
Bayer AG .......................... 4,500 173,404
BHW Holding AG* ................... 23,600 399,220
B.U.S. Berzelius Umwelt-Service AG 28,000 425,483
Daimler-Benz AG ................... 2,000 162,739
Deutsche Bank AG .................. 3,250 190,837
Deutsche Telekom AG (ADR) ......... 50,000 1,206,250
Dresdner Bank AG .................. 2,850 99,854
Gerresheimer Glas AG .............. 30,000 503,183
Linde AG .......................... 50 38,850
Lufthansa AG ...................... 2,000 38,477
Pfeiffer Vacuum Technology (ADR)* 15,000 436,875
RWE AG ............................ 1,850 79,563
SAP AG ............................ 500 100,292
Schering AG ....................... 400 42,846
SGL Carbon AG+ .................... 8,000 1,092,723
Siemens AG ........................ 2,500 149,736
SKW Trostberg AG .................. 5,000 167,154
Thyssen AG ........................ 150 36,083
Turbon International AG ........... 3,000 91,175
Veba AG ........................... 5,150 290,885
Viag AG ........................... 150 68,510
--------------
TOTAL GERMANY (3.0%) ............. 6,569,292
--------------
GREECE
A.G. Petzetakis SA* ............... 200,000 1,015,624
Hellenic Telecommunication
Organization SA* ................. 14,070 330,356
Hellenic Telecomnumication
Organization SA--Rights* ......... 14,070 0
--------------
TOTAL GREECE (0.6%) .............. 1,345,980
--------------
HONG KONG
Aeon Credit Service Co. ........... 924,000 310,095
Associated International Hotels .. 10,000 6,906
Cheung Kong Holdings .............. 50,000 493,720
China Travel International
Investment HK Ltd.* .............. 270,000 156,829
Cosco Pacific Ltd.* ............... 300,000 695,081
Hang Seng Bank .................... 5,000 71,315
HSBC Holdings PLC (H.K.$) ......... 14,200 427,065
Hutchison Whampoa ................. 12,000 103,778
Jardine International Holdings
Ltd. ............................. 32,000 40,479
JCG Holdings ...................... 250,000 201,683
Kwong On Bank Limited* ............ 30,000 42,595
Sino Land Co. ..................... 550,000 596,337
--------------
TOTAL HONG KONG (1.4%) ........... 3,145,883
--------------
INDIA
PT Great River International* .... 1,367,000 857,185
Videsh Sanchar Nigam Ltd. (GDR)*+ 44,000 872,300
--------------
TOTAL INDIA (0.8%) ............... 1,729,485
--------------
INDONESIA
PT Bunas Finance Indonesia ........ 120,000 $ 175,164
PT Citatah* ....................... 337,500 315,712
PT Indonesian Satellite (ADR) .... 12,000 359,250
PT Sekar Bumi ..................... 190,000 240,234
Ramayana Lestari Sentosa* ......... 22,500 64,762
--------------
TOTAL INDONESIA (0.5%) ........... 1,155,122
--------------
IRELAND
Crean (James) PLC-Units ........... 5,000 15,010
Fyffes PLC ........................ 900,000 1,296,301
Irish Continental Group ........... 20,000 227,421
Jurys Hotel Group PLC ............. 150,000 761,861
Waterford Foods PLC ............... 800,000 1,661,692
--------------
TOTAL IRELAND (1.8%) ............. 3,962,285
--------------
ISRAEL
Home Centers Ltd.* ................ 15,400 88,550
Tadiran Telecommunications Ltd. ... 20,000 431,250
--------------
TOTAL ISRAEL (0.2%) .............. 519,800
--------------
<PAGE>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
ITALY
Arnoldo Mondadori Editore Spa ..... 90,000 519,710
Assicurazioni Generali ............ 5,500 99,937
Banca Commerciale Italiana ........ 10,000 20,699
Danieli & Co.* .................... 24,800 163,772
ENI Spa ........................... 20,000 113,198
ENI Spa (ADR) ..................... 8,000 455,000
Esaote Biomedica Spa .............. 156,000 411,887
Fiat Spa .......................... 20,000 71,976
Fila Holdings Spa (ADR) ........... 2,000 66,875
Holding di Partecipazioni
Industriali Spa* ................. 90,000 43,133
Istituto Bancario San Paolo di
Torino ........................... 5,000 36,429
Istituto Mobilare Italiano ........ 2,500 22,493
Istituto Naz Delle Assicurazioni . 22,500 34,268
Mediaset Spa ...................... 140,000 593,979
Mediolanum Spa+ ................... 30,000 338,182
Parmalat Finanziaria Spa .......... 300,000 424,271
Rinascente--Rights* ............... 9,700 1,700
Rinascente--Warrants* ............. 500 247
Telecom Italia Mobile Spa ......... 40,000 129,369
Telecom Italia Spa ................ 5,000 14,966
Zucchini Spa ...................... 70,000 428,093
--------------
TOTAL ITALY (1.8%) ............... 3,990,184
--------------
JAPAN
Akita Bank ........................ 20,000 116,569
Asahi Bank Ltd. ................... 40,000 340,284
Asahi Chemical Industry Co. ...... 6,000 35,861
Asahi Diamond Industry Co. Ltd. 24,000 221,970
Asahi Glass Co. Ltd. .............. 16,000 159,148
Asatsu, Inc. ...................... 16,000 591,920
Bank of Tokyo-Mitsubishi Bank .... 66,000 1,324,492
Bridgestone Corp. ................. 4,000 92,837
Bridgestone Metalpha .............. 9,000 79,312
Canon, Inc. ....................... 14,000 381,119
Capcom Co. Ltd. ................... 3,400 80,988
Chubu Sekiwa Real Estate .......... 4,000 42,579
38
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Credit Saison Co. ................. 63,800 $1,558,677
Daibiru Corp. ..................... 13,000 156,531
Dai-Ichi Kangyo Bank .............. 82,000 1,116,133
Daimon Co. Ltd. ................... 8,000 54,376
Dainippon Ink & Chemical, Inc. ... 15,000 64,654
Dainippon Printing Co. Ltd. ...... 3,000 67,795
Daiseki Co. Ltd. .................. 7,000 146,584
Daito Trust Construction Co. ..... 23,000 270,919
Daiwa House Industry Co. .......... 2,000 24,431
Data Communication System Co.* .... 1,000 21,900
DDI Corp. ......................... 90 664,340
Deodeo Corp. ...................... 2,400 46,907
Doshisha Co. ...................... 4,000 45,022
Eiden Sakakiya Co. Ltd. ........... 18,000 150,772
Enplas Corp. ...................... 33,000 601,780
Enshu* ............................ 36,000 113,393
Exedy Corp. ....................... 3,000 38,217
Familymart Co. .................... 2,000 98,072
Fanuc Co. ......................... 900 34,552
FCC Co. Ltd. ...................... 4,000 101,213
Fuji Bank Ltd. .................... 11,000 165,082
Fuji Soft Corp. ................... 18,600 811,448
Fujikura Ltd. ..................... 76,000 709,537
Fujimi, Inc. ...................... 4,000 262,106
Hachijuni Bank .................... 8,000 80,970
Hirose Electric Co. Ltd. .......... 1,300 89,155
Hitachi Ltd. ...................... 16,000 178,693
Hitachi Metals Ltd. ............... 24,000 174,854
Hitachi Plant Engineering &
Construction Co. ................. 24,000 111,404
Hokushin .......................... 600 3,492
Homac Corp. ....................... 7,000 99,555
Home Wide Corp., Inc. ............. 15,000 110,592
Honda Motor Corp. ................. 32,000 963,267
Hoya Corp. ........................ 35,000 1,557,456
Imagineer Co. Ltd.* ............... 13,000 436,698
Industrial Bank of Japan .......... 9,000 139,778
Isetan Co. ........................ 58,000 718,611
Ishihara Sangyo Ltd.* ............. 96,000 283,954
Ishikawajima Harima Heavy
Industries ....................... 48,000 188,465
Isuzu Motors Ltd. ................. 24,000 82,715
Ito Yokado Co. Ltd. ............... 2,000 116,046
Japan Airport Terminal Co. ........ 54,000 654,917
Japan Industrial Land Development 14,000 138,033
Kajima Corp. ...................... 16,000 93,674
Kaneshita Construction Co. ........ 12,000 93,709
Kawasaki Heavy Industries Ltd. ... 96,000 446,453
Kawasaki Kisen* ................... 16,000 32,248
Kawasaki Steel .................... 10,000 32,545
Keyence Corp. ..................... 2,600 385,656
Kikuchi Co. Ltd. .................. 10,000 109,938
King Co. .......................... 38,000 142,570
Kinki Nippon Railroad Co. ......... 7,000 42,754
Kirin Brewery Co. ................. 4,000 41,532
Koa Fire & Marine ................. 12,000 72,559
Komatsu Ltd. ...................... 4,000 32,458
Kubota Corp. ...................... 6,000 29,369
Mabuchi Motor Co. ................. 11,600 673,065
Makino Milling Machine Co. ........ 14,000 $ 119,588
Mars Engineering Corp. ............ 6,000 137,161
Matsuda Sangyo Co. Ltd. ........... 8,000 146,584
Matsuyadenki Co. Industries ...... 3,000 26,699
Meitec Corp. ...................... 38,000 1,130,617
Minebea Co. ....................... 74,000 787,715
Misawa Ceramic Corp. .............. 32,000 153,564
Mitsubishi Chemical Corp. ......... 5,000 16,316
Mitsubishi Corp. .................. 6,000 74,863
Mitsubishi Estate Co. ............. 34,000 492,453
Mitsubishi Heavy Industries Ltd. .. 110,000 843,644
Mitsubishi Materials Corp. ........ 6,000 23,977
Mitsubishi Trust & Banking Corp. .. 48,000 758,049
Mitsui Home Co. Ltd. .............. 24,000 236,629
Mitsui & Co. ...................... 6,000 57,587
Namco Ltd. ........................ 12,800 493,639
Namura Shipbuilding Co. ........... 18,000 89,521
Nanno Construction Co. Ltd. ...... 15,000 51,697
NGK Spark Plug Co. ................ 40,000 436,262
NIC Corp.* ........................ 42,000 531,367
Nichiei Co. Ltd. .................. 11,000 1,276,503
Nichiha Corp. ..................... 53,000 832,388
Nichii Gakkan Co.* ................ 14,000 781,782
Nintendo Co. ...................... 8,000 670,099
Nippon Broadcast System ........... 11,000 1,218,916
Nippon Denwa Shisetsu ............. 26,000 223,227
Nippon Express Co. Ltd. ........... 5,000 39,918
Nippon Paper Industries Co. ...... 20,000 115,697
Nippon Steel Corp. ................ 27,000 86,223
Nippon System Development Co. ..... 12,000 285,839
Nippon Television Network Corp. ... 830 333,130
Nippondenso Co. Ltd. .............. 4,000 95,629
Nireco ............................ 15,000 134,805
Nissen Corp. Ltd.* ................ 2,300 8,770
Nitta Corp. ....................... 32,000 393,683
Nitto Kohki Co. Ltd. .............. 23,400 808,516
Nomura Securities Co. ............. 8,000 110,287
Noritsu Koki Co. Ltd. ............. 27,400 1,350,755
Ohmoto Gumi Co. Ltd. .............. 10,000 82,017
Oie Sangyo Co. Ltd. ............... 13,200 131,297
Oji Paper Co. Ltd. ................ 32,000 197,958
Oriental Construction Co. ......... 10,000 90,743
Paris Miki, Inc. .................. 30,200 888,003
Promise Co. Ltd. .................. 8,800 503,691
PS Corp. .......................... 18,900 204,485
Raito Kogyo Co. Ltd. .............. 40,000 415,322
Renown, Inc.* ..................... 62,000 154,175
Ricoh Elemex Corp. ................ 7,000 91,004
Rohm Co. Ltd. ..................... 6,000 617,747
Royal Ltd. ........................ 100 2,103
Santen Pharmaceutical Co. ......... 41,000 826,368
Sankyo Co. ........................ 54,000 1,813,978
Sanyo Chemicals ................... 12,000 106,797
Sanyo Electric Co. Ltd. ........... 60,000 269,086
Sanyo Engineering & Construction,
Inc. ............................. 22,000 190,804
Sanyo Pax Co. Ltd. ................ 24,000 376,930
Sanyo Shinpan Finance Co. Ltd. ... 7,200 445,406
Sato Corp. ........................ 37,500 660,937
Sekisui House Ltd. ................ 3,000 30,364
39
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Seven-Eleven Japan Ltd. ........... 6,200 $ 468,476
Sharp Corp. ....................... 4,000 55,144
Shimizu Corp. ..................... 3,000 17,983
Shin-Etsu Chemical Ltd. ........... 4,000 106,099
Shinko Electric Industries ........ 21,300 778,702
Shiseido Co. ...................... 4,000 65,963
Shizuoka Bank ..................... 50,000 571,503
Sho Bond Construction ............. 36,800 960,056
SMC Corp. ......................... 9,000 760,143
Sodick Co.* ....................... 92,000 747,334
Sony Corp. ........................ 1,000 87,165
Suido Kiko Kaisha ................. 8,000 47,465
Sumitomo Bank Ltd. ................ 100,000 1,640,346
Sumitomo Forestry Co. ............. 11,000 120,932
Sumitomo Heavy Industries Ltd. ... 56,000 226,228
Sumitomo Marine & Fire Insurance
Co. .............................. 70,000 574,121
Sumitomo Metal Industries ......... 186,000 529,064
Sumitomo Realty & Development Co. 118,000 1,039,874
Taisei Corp. ...................... 4,000 18,532
Taisho Pharmaceutical Co. ......... 31,000 835,791
Takara Printing Co. ............... 14,000 101,387
Takefuji Corp. .................... 22,340 1,220,211
Takihyo Co. Ltd. .................. 14,000 129,483
TDK Corp. ......................... 17,000 1,247,448
Toda Construction ................. 18,000 125,958
Toei Co. .......................... 12,000 82,192
Toho Bank ......................... 26,000 159,934
Toho Titanium* .................... 34,000 519,152
Tokio Marine & Fire Insurance Co. 6,000 78,527
Tokyo Broadcasting System ......... 24,000 492,104
Tokyo Electric Power Co., Inc. ... 7,000 147,195
Tokyo Electron .................... 8,200 392,077
Toso Co. Ltd. ..................... 18,000 150,772
Towa Corp.* ....................... 12,000 505,715
Toyoda Gosei ...................... 20,000 139,604
Toyota Motor Corp. ................ 36,000 1,061,687
Warabeya Nichiyo Co. Ltd. ......... 10,000 81,145
Wesco, Inc. ....................... 5,200 53,084
Xebio Co. ......................... 4,800 118,105
Yamaichi Electronics Co.* ......... 22,000 583,544
Yamaichi Securities ............... 40,000 119,012
Yamato Transport .................. 62,000 773,580
Yaskawa Electric Corp. ............ 25,000 103,830
Yokogawa Electric Corp. ........... 120,000 1,041,798
--------------
TOTAL JAPAN (28.1%) .............. 61,700,484
--------------
MALAYSIA
AMMB Holdings BHD ................. 50,000 311,014
Arab Malaysian Finance BHD ........ 140,000 296,751
Boustead Holdings BHD ............. 40,000 87,163
Guinness Anchor BHD ............... 30,000 66,561
Hong Leong Bank BHD ............... 140,000 352,219
IOI Corp. BHD ..................... 100,000 114,105
Kim Hin Industry BHD .............. 48,000 58,574
Kim Hin Industry--Rights* ......... 10,000 139
Kumpulan Guthrie BHD .............. 40,000 63,391
Lingkaran Trans Kota Holdings BHD* 150,000 $ 312,005
Magnum Corp. BHD .................. 74,000 111,410
Malayan Banking Berhad ............ 24,000 251,981
Mancon BHD* ....................... 76,666 130,004
Metacorp Berhard .................. 120,000 249,604
Pacific & Orient BHD .............. 80,000 190,174
Pelangi BHD* ...................... 17,000 17,377
Pernas International Hotels &
Properties* ...................... 600,000 499,208
Resorts World BHD ................. 20,000 60,222
RJ Reynolds BHD ................... 190,000 474,247
Sap Holdings* ..................... 60,000 135,499
Sime Darby BHD .................... 150,000 499,208
Sriwani Holdings BHD .............. 180,000 374,406
Star Publications BHD* ............ 25,000 106,973
Talam Corp. BHD* .................. 315,000 374,406
Tanjong PLC* ...................... 100,000 344,691
UMW Holdings BHD .................. 150,000 707,211
--------------
TOTAL MALAYSIA (2.8%) ............ 6,188,543
--------------
MEXICO
Elamex S.A. de C.V.* .............. 33,300 324,675
Grupo Elektra, S.A. de CV ......... 60,000 653,159
Grupo Financiero Banamex Accival
(B Shares)* ...................... 100,000 269,947
Grupo Industrial Saltillo SA ..... 236,000 861,314
Industrias Campos Hermanos
(B Shares)* ...................... 140,000 574,377
--------------
TOTAL MEXICO (1.2%) .............. 2,683,472
--------------
NETHERLANDS
ABN Amro Holding N.V. ............. 5,824 108,585
Aegon N.V. ........................ 8,000 558,311
Akzo Nobel N.V. ................... 5,330 730,374
AMEV N.V. ......................... 10,000 445,222
Content Beheer+ ................... 30,000 1,305,103
Elsevier N.V. ..................... 17,310 289,225
Goudsmit N.V. ..................... 6,000 912,349
Gucci Group N.V. .................. 4,000 257,500
Heineken N.V. ..................... 233 39,762
Hunter Douglas N.V. ............... 3,000 255,213
IHC Caland N.V. ................... 4,000 218,638
ING Groep N.V. .................... 3,392 156,376
KLM ............................... 2,000 61,638
Kon. PTT Nederland+ ............... 20,000 784,488
Koninklijke Nedlloyd Groep N.V. ... 2,250 64,988
Nutricia Verenigde Bedrijven N.V.+ 4,000 631,666
Royal Dutch Petroleum ............. 2,487 517,401
Toolex Alpha N.V.* ................ 15,000 157,500
Unilever N.V. CVA ................. 742 156,182
Vedior N.V.* ...................... 70,000 1,850,678
Vendex International N.V. ......... 3,600 197,141
Ver Ned Uitgeversbedr Ver Bezit
N.V. ............................. 5,000 110,541
--------------
TOTAL NETHERLANDS (4.5%) ......... 9,808,881
--------------
NEW ZEALAND
Air New Zealand Ltd. (B Shares) ... 109,000 333,172
Restaurant Brands NZ Ltd.* ........ 312,500 543,400
40
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Sky City Ltd. ..................... 35,300 $ 179,592
Telecom Corp. of New Zealand ..... 70,700 360,172
Tourism Holdings Ltd. ............. 15,000 21,294
Warehouse Group Ltd. .............. 110,000 328,010
--------------
TOTAL NEW ZEALAND (0.8%) ......... 1,765,640
--------------
NORWAY
Alvern Norway ASA* ................ 120,000 655,658
Hafslund ASA (B Shares) ........... 5,000 27,182
Navia ASA* ........................ 94,000 385,199
Norsk Hydro AS .................... 1,100 59,952
Nycomed ASA (B Shares) ............ 4,000 57,097
Tomra Systems ASA ................. 58,000 1,188,380
Union Bank of Norway .............. 12,000 357,334
--------------
TOTAL NORWAY (1.2%) .............. 2,730,802
--------------
PANAMA (0.4%)
Banco Latinoamericano de
Exportaciones A.S. (E Shares) .... 20,000 862,500
--------------
PERU
Banco Wiese Limitado (ADR) ........ 10,000 65,000
Telefonica del Peru S.A. (ADR) ... 60,000 1,571,250
--------------
TOTAL PERU (0.8%) ................ 1,636,250
--------------
PORTUGAL
Banco Comercial Portugues, SA .... 10,000 188,804
Electricidade de Portugal* ........ 38,105 699,093
Portugal Telecom SA ............... 2,010 81,060
Telecel Comunicacoes Pessoais, SA* 14,490 1,201,633
--------------
TOTAL PORTUGAL (1.0%) ............ 2,170,590
--------------
SINGAPORE
City Developments Ltd. ............ 40,000 391,691
Fraser & Neave .................... 50,000 356,718
GP Batteries International Ltd. .. 140,000 417,106
Great Eastern Life Assurance Co... 7,000 76,869
Overseas Union Bank Ltd. .......... 20,000 124,502
Overseas Union Bank Ltd.--Rights* 4,000 2,182
Singapore Airlines Ltd. ........... 20,000 179,059
Singapore Land Ltd. ............... 140,000 636,497
--------------
TOTAL SINGAPORE (1.0%) ........... 2,184,624
--------------
SOUTH AFRICA (0.2%)
Randgold Resources Ltd.*+ ......... 30,300 501,465
--------------
SOUTH KOREA
Korea Electric Power (ADR) ........ 10,000 186,875
SK Telecom Co. Ltd. ............... 63,860 642,591
--------------
TOTAL SOUTH KOREA (0.4%) ......... 829,466
--------------
SPAIN
Aguas de Barcelona* ............... 60 2,422
Banco Bilbao Vizcaya SA ........... 1,627 132,145
Banco de Valencia ................. 30,000 631,035
Banco Santander SA ................ 3,468 106,833
Catalana Occidente SA ............. 440 21,914
Catalana Occidente SA*+ ........... 15,600 776,946
Centros Comerciales Pryca SA ..... 3,000 64,936
Construcciones Auxiliar Ferro .... 500 $ 22,561
Corp Financiera Reunida SA* ...... 192,700 810,669
Corporacion Mapfre Cia Inter SA .. 10,000 531,969
Endesa ............................ 1,122 94,174
Gas Y Electridad SA (Series 2) ... 15,903 853,544
General de Aguas d'Barcelona ..... 6,000 245,493
Grupo Acciona SA .................. 1,000 112,636
Hidroelectrica del Cantabrico .... 10,000 405,762
Iberdrola SA ...................... 35,668 450,155
Portland Valderrivas SA ........... 5,000 408,476
Repsol SA ......................... 4,392 185,661
Tabacalera SA ..................... 10,000 536,719
Telefonica de Espana SA ........... 12,358 357,214
Viscofan Envoltura ................ 2,500 58,439
--------------
TOTAL SPAIN (3.1%) ............... 6,809,703
--------------
SWEDEN
Astra AB (A Shares) ............... 20,000 372,919
Autoliv, Inc.* .................... 8,000 313,000
Castellum AB* ..................... 83,400 626,348
Dahl Internationl AB+ ............. 32,000 629,818
Ericsson (L.M.) Telephone Co.
(Series B) ....................... 6,400 252,342
Kalmar Industries AB+ ............. 10,000 171,569
Karlshamns AB*+ ................... 49,400 582,090
NetCom Systems AB (B Shares)* .... 30,000 423,418
Scandic Hotels AB*+ ............... 80,000 1,263,780
Skandia Forsakrings AB ............ 14,000 516,648
Sparbanken Sverige AB
(A Shares) ....................... 11,000 244,987
Swedish Match Co. AB .............. 200,000 673,326
--------------
TOTAL SWEDEN (2.8%) .............. 6,070,245
--------------
SWITZERLAND
ABB AG ............................ 210 317,768
Ciba Specialty Chemicals AG* ..... 10,580 977,953
CS Holdings ....................... 1,250 160,476
Nestle AG ......................... 180 237,371
Novartis AG ....................... 542 866,161
Roche Holdings AG Genusscheine ... 80 723,314
Schweizerische Bankgesellschaft .. 120 137,213
Schweizerische Ruckversicherungs
Gesellschaft...................... 120 169,668
Selecta Group* .................... 10,400 1,580,828
Tag Heuer International SA (ADR)* 35,000 527,188
--------------
TOTAL SWITZERLAND (2.6%) ......... 5,697,940
--------------
THAILAND
CMIC Finance & Securities Co. Ltd. 51,000 12,797
Nation Publishing Group Co. Ltd. . 130,000 276,008
Nawarat Patanakarn Public Co. .... 30,000 10,654
Thai Engine Manufacturing Public
Co. .............................. 70,000 453,966
--------------
TOTAL THAILAND (0.3%) ............ 753,425
--------------
41
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
UNITED KINGDOM
Amvescap PLC ...................... 80,000 $ 466,782
BAA PLC............................ 30,000 276,423
Barclays Bank ..................... 28,000 555,610
Bass Breweries .................... 50,000 610,113
BG PLC ............................ 25,021 92,052
BOC Group Co. PLC ................. 2,591 45,073
Boots Co. PLC ..................... 5,806 67,995
BPB PLC ........................... 70,000 378,137
British Aerospace ................. 2,120 47,167
British Airways ................... 38,000 433,005
British Energy PLC ................ 251,400 613,111
British Petroleum Co. PLC ......... 29,367 364,943
British Sky Broadcasting Group PLC 8,097 59,308
British Telecommunications ........ 35,150 260,973
BTR PLC ........................... 21,470 73,448
Cable & Wireless .................. 12,409 114,131
Cadbury Schweppes PLC ............. 5,961 53,139
Carlton Communications PLC ........ 140,000 1,182,769
Carpetright PLC* .................. 50,000 415,759
Centrica PLC* ..................... 25,021 30,510
Commercial Union PLC .............. 2,801 29,446
Dixons Group PLC .................. 120,000 932,898
Energy Group PLC* ................. 4,456 47,549
Filtronic Comtek PLC .............. 180,000 1,186,598
Flextech PLC* ..................... 46,000 492,385
General Accident .................. 2,904 42,397
General Electric Co. PLC .......... 13,890 83,010
GKN PLC ........................... 2,089 35,975
Glaxo Wellcome PLC ................ 23,220 479,314
Granada Group PLC ................. 3,225 42,412
Grand Metropolitan ................ 24,736 239,450
Great Universal Stores ............ 3,970 40,182
Guinness PLC ...................... 80,571 788,664
Hanson PLC ........................ 5,571 27,683
Harvey Nichols Group PLC .......... 70,000 328,612
Holliday Chemical Holdings PLC .... 250,000 595,130
House of Fraser PLC ............... 150,000 394,534
HSBC Holdings PLC ................. 10,000 296,317
Imperial Chemical Industries ..... 3,109 43,242
Imperial Tobacco PLC* ............. 80,000 514,725
Jefferson Smurfit Group PLC ...... 200,000 575,986
Johnson Matthey PLC ............... 55,000 530,124
Kingfisher PLC .................... 4,084 46,367
Ladbroke Group PLC ................ 150,000 586,807
Land Securities PLC ............... 3,207 45,245
Legal & General Group ............. 7,475 50,459
Lloyds TSB Group PLC .............. 34,379 352,541
LucasVarity PLC ................... 200,000 692,515
Marks & Spencer ................... 17,109 141,837
McBride PLC ....................... 20,000 45,113
MEPC PLC .......................... 70,000 574,488
Mirror Group Newspapers PLC ...... 40,000 125,185
Misys PLC ......................... 12,000 $ 272,178
National Grid Group PLC ........... 250,000 913,504
National Power PLC ................ 100,000 868,973
Norwich Union PLC* ................ 90,000 478,684
Pace Micro Technology PLC. ........ 100,000 111,535
Pearson PLC ....................... 50,000 578,899
Peninsular & Oriental Steam
Navigation Co. ................... 3,314 33,101
Powerscreen International ......... 40,000 435,818
Prudential Corp. .................. 8,019 77,626
Rank Group PLC .................... 12,574 79,646
Reed International ................ 70,000 678,199
Rentokil Initial PLC .............. 200,000 702,503
Reuters Holdings .................. 7,496 78,989
RTZ Corp. ......................... 5,510 95,990
Safeway PLC ....................... 6,932 40,100
Scottish Power PLC ................ 5,263 34,257
Shandwick International PLC* ..... 80,000 64,257
Smith & Nephew PLC* ............... 55,000 152,903
Smithkline Beecham PLC ............ 40,000 736,130
Tesco PLC ......................... 12,625 77,657
Thistle Hotels PLC ................ 94,000 248,024
Thorn PLC ......................... 120,000 343,594
Tomkins PLC ....................... 25,000 108,206
Unilever .......................... 4,907 140,624
United Utilities PLC .............. 2,901 31,897
Vodafone Group .................... 150,000 730,387
WPP Group PLC ..................... 60,000 246,209
Zeneca Group PLC .................. 10,336 341,718
--------------
TOTAL UNITED KINGDOM (11.5%) ..... 25,249,246
--------------
TOTAL COMMON STOCKS
AND OTHER INVESTMENTS (86.5%)
(Cost $171,762,993) .............. 190,176,411
--------------
<PAGE>
PREFERRED STOCKS:
AUSTRALIA (0.3%)
Village Roadshow Ltd............... 240,000 607,060
--------------
GERMANY
Fielmann AG ....................... 7,000 212,742
Fresenius AG ...................... 2,222 505,266
--------------
TOTAL GERMANY (0.3%) ............. 718,008
--------------
FINLAND (0.1%)
Nokia Oy Cum ...................... 1,400 104,690
--------------
TOTAL PREFERRED STOCKS (0.7%)
(Cost $1,409,359) ................ 1,429,758
--------------
LONG-TERM DEBT SECURITIES:
SPAIN (0.0%)
Corporacion Mapfre
8.5% Conv., 02/27/99 ... Peseta 2,520,000 17,099
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $20,682) ..................... 17,099
--------------
42
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
5.39%, due 07/03/97 .... $19,700,000 $ 19,694,101
Federal National Mortgage
Association
5.35%, due 08/14/97 .... 5,000,000 5,000,000
-------------
TOTAL U.S. GOVERNMENT
AGENCIES (11.2%) ....... 24,694,101
-------------
TOTAL SHORT-TERM DEBT SECURITIES
(11.2%)
(Amortized Cost $24,694,101) .......... 24,694,101
-------------
TOTAL INVESTMENTS (98.4%)
(Cost/Amortized Cost $197,887,135) 216,317,369
OTHER ASSETS
LESS LIABILITIES (1.6%) 3,627,089
-------------
NET ASSETS (100.0%) ..... $219,944,458
=============
</TABLE>
- -----------------------------------------------------------------------------
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Equity Investments
<TABLE>
<CAPTION>
<S> <C>
Basic Materials ........ 5.4%
Business Services ...... 10.7
Capital Goods .......... 10.8
Consumer Cyclicals .... 19.1
Consumer Non-Cyclicals 13.8
Credit Sensitive ....... 23.6
Energy ................. 4.4
Technology ............. 10.4
Diversified ............ 1.8
-------
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. At June 30, 1997, these securities amounted to $11,990,850 or
5.5% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
43
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS--SPECIALTY (4.6%)
Crompton & Knowles Corp.+........ 5,238,000 $116,545,500
Cytec Industries, Inc.*.......... 2,187,100 81,742,863
--------------
198,288,363
--------------
METALS & MINING (1.3%)
Cyprus Amax Minerals Co. ........ 1,340,000 32,830,000
Titanium Metals Corp.*........... 695,700 22,001,513
--------------
54,831,513
--------------
STEEL (4.4%)
AK Steel Holding Corp.+ ......... 2,484,200 109,615,325
Inland Steel Industries, Inc. .. 1,475,500 38,547,438
LTV Corp......................... 1,588,200 22,631,850
National Steel Corp.*+........... 1,082,300 18,196,169
--------------
188,990,782
--------------
TOTAL BASIC MATERIALS (10.3%) .. 442,110,658
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (4.1%)
Philip Services Corp.*........... 583,000 9,255,125
USA Waste Services, Inc.*........ 4,310,200 166,481,475
--------------
175,736,600
--------------
PRINTING, PUBLISHING &
BROADCASTING (6.1%)
Comcast Corp. (Class A) SPL ..... 5,447,100 116,431,763
Evergreen Media Corp.
(Class A)*+..................... 3,244,500 144,785,813
--------------
261,217,576
--------------
PROFESSIONAL SERVICES (0.7%)
Cambridge Technology Partners,
Inc.*........................... 792,300 25,353,600
Corrections Corp. of America* ... 100,000 3,975,000
--------------
29,328,600
--------------
TRUCKING, SHIPPING (1.5%)
Xtra Corp.+...................... 1,457,700 64,047,694
--------------
TOTAL BUSINESS SERVICES (12.4%) 530,330,470
--------------
CONSUMER CYCLICALS
AIRLINES (3.3%)
Continental Airlines, Inc.
(Class B)*+..................... 3,126,700 109,239,081
Northwest Airlines Corp.
(Class A)*...................... 908,900 33,061,238
--------------
142,300,319
--------------
APPAREL, TEXTILE (7.0%)
Mohawk Industries, Inc.*+........ 1,955,500 44,487,625
Nine West Group, Inc.*+.......... 2,039,200 77,871,950
Polymer Group, Inc.*+............ 2,534,600 40,870,425
Reebok International Ltd......... 200,100 9,354,675
Shaw Industries, Inc............. 1,651,800 17,550,375
Tommy Hilfiger Corp.*............ 1,558,500 62,632,219
UNIFI, Inc. ..................... 1,223,900 45,743,263
--------------
298,510,532
--------------
AUTO RELATED (6.4%)
Circuit City Stores, Inc.-CarMax
Group*+......................... 4,354,600 $ 62,325,213
Republic Industries, Inc.* ...... 8,500,000 211,437,500
--------------
273,762,713
--------------
<PAGE>
FOOD SERVICES, LODGING (6.0%)
Doubletree Corp.*................ 1,324,400 54,465,950
Extended Stay America, Inc.* .... 2,516,837 39,640,183
Host Marriott Corp.*............. 7,930,400 141,260,250
Suburban Lodges of America,
Inc.*+.......................... 942,400 19,790,400
--------------
255,156,783
--------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.3%)
Industrie Natuzzi (ADR).......... 2,147,800 55,037,375
--------------
LEISURE RELATED (8.5%)
Callaway Golf Company............ 894,200 31,744,100
Florida Panthers Holdings,
Inc.*........................... 574,300 13,926,775
Harman International
Industries, Inc.+............... 1,583,100 66,688,088
Hasbro, Inc...................... 3,915,000 111,088,125
ITT Corp.*....................... 2,094,200 127,877,088
Mattel, Inc...................... 350,000 11,856,250
--------------
363,180,426
--------------
RETAIL--GENERAL (1.4%)
CompUSA, Inc.*................... 1,000,000 21,500,000
Gucci Group N.V.................. 625,500 40,266,563
--------------
61,766,563
--------------
TOTAL CONSUMER CYCLICALS (33.9%) 1,449,714,711
--------------
CONSUMER NONCYCLICALS
CONTAINERS (0.1%)
Tupperware Corp.................. 123,600 4,511,400
--------------
DRUGS (3.5%)
Biogen, Inc.*.................... 1,471,300 49,840,288
Centocor, Inc.*.................. 2,564,900 79,672,206
MedImmune, Inc.*................. 1,012,100 18,723,850
--------------
148,236,344
--------------
HOSPITAL SUPPLIES &
SERVICES (3.7%)
Health Management Associates,
Inc. (Class A)*................. 1,600,900 45,625,650
Saint Jude Medical, Inc.*........ 2,852,750 111,257,250
--------------
156,882,900
--------------
SOAPS & TOILETRIES (0.1%)
Dial Corp. ...................... 451,600 7,056,250
--------------
TOTAL CONSUMER NONCYCLICALS (7.4%) 316,686,894
--------------
CREDIT SENSITIVE
FINANCIAL SERVICES (2.9%)
Bear Stearns Cos., Inc........... 900,000 30,768,750
Edwards (A.G.), Inc.............. 685,500 29,305,125
Paine Webber Group, Inc.......... 1,011,800 35,413,000
Schwab (Charles) Corp............ 684,500 27,850,594
--------------
123,337,469
--------------
44
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------
INSURANCE (2.7%)
CNA Financial Corp.*............. 1,083,100 $ 114,199,356
--------------
UTILITY--TELEPHONE (1.8%)
Telephone & Data Systems, Inc. . 2,050,000 77,771,875
--------------
TOTAL CREDIT SENSITIVE (7.4%) . . 315,308,700
--------------
ENERGY
OIL--DOMESTIC (5.7%)
Ashland, Inc. ................... 1,420,000 65,852,500
Ultramar Diamond Shamrock Corp.
+............................... 4,202,122 137,094,230
Valero Energy Corp............... 1,147,200 41,586,000
--------------
244,532,730
--------------
OIL--SUPPLIES &
CONSTRUCTION (7.2%)
Diamond Offshore Drilling,
Inc.*........................... 2,000,000 156,250,000
Noble Drilling Corp.*............ 1,838,500 41,481,156
Rowan Cos., Inc.*................ 3,890,600 109,666,288
--------------
307,397,444
--------------
RAILROADS (1.5%)
Wisconsin Central Transport
Corp.*.......................... 1,676,500 62,449,625
--------------
TOTAL ENERGY (14.4%)............ 614,379,799
--------------
TECHNOLOGY
ELECTRONICS (3.5%)
Altera Corp.*.................... 600,000 30,300,000
Atmel Corp.*..................... 1,362,500 38,150,000
Pairgain Technologies, Inc.* .... 1,180,000 18,290,000
Parametric Technology Corp.* .... 999,100 42,524,194
Western Digital Corp.*........... 580,000 18,342,500
--------------
147,606,694
--------------
OFFICE EQUIPMENT (1.0%)
Quantum Corp.*................... 2,088,200 42,416,555
--------------
OFFICE EQUIPMENT SERVICES (2.7%)
Comverse Technology, Inc.* ...... 741,000 38,532,000
Fore Systems, Inc.*.............. 1,900,700 25,897,038
Sterling Commerce, Inc.*......... 1,611,448 52,976,353
--------------
117,405,391
--------------
TELECOMMUNICATIONS (4.8%)
America Online, Inc.*............ 123,100 $ 6,847,438
American Satellite
Network-Rights*................. 49,450 0
McAfee Associates, Inc.*......... 764,500 48,259,063
MEMC Electronic Materials,
Inc.*........................... 900,000 29,475,000
Millicom International Cellular
SA*............................. 1,697,015 81,032,466
TeleTech Holdings, Inc.*......... 621,700 16,203,056
U.S. Cellular Corp.*............. 739,800 21,916,575
--------------
203,733,598
--------------
TOTAL TECHNOLOGY (12.0%)........ 511,162,238
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (97.8%)
(Cost $3,645,894,126)........... 4,179,693,470
--------------
<PAGE>
PRINCIPAL
AMOUNT
-------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (1.0%)
Associates Corp. of North America
6.3%, due 07/01/97.............. $41,700,000 41,700,000
--------------
U.S. GOVERNMENT AGENCIES (0.1%)
Federal Home Loan Bank
5.2%, due 07/01/97.............. 3,500,000 3,500,000
--------------
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.........
6.25%, due 07/01/97............. 20,500,000 20,500,000
Sumitomo Bank Ltd.
6.25%, due 07/01/97............. 14,500,000 14,500,000
--------------
TOTAL TIME DEPOSITS (0.8%) ..... 35,000,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (1.9%)
(Amortized Cost $80,200,000) ... 80,200,000
--------------
TOTAL INVESTMENTS (99.7%)
(Cost/Amortized Cost $3,726,094,126) 4,259,893,470
OTHER ASSETS
LESS LIABILITIES (0.3%)......... 14,832,991
--------------
NET ASSETS (100.0%).............. $4,274,726,461
==============
</TABLE>
- ------------
* Non-income producing.
+ Affiliated company as defined under the Investment Company Act of 1940
(see Note 6).
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
45
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS--SPECIALTY (2.8%)
Crompton & Knowles Corp.......... 11,000 $ 244,750
Cytec Industries, Inc.*.......... 2,600 97,175
--------------
341,925
--------------
METALS & MINING (3.7%)
Century Aluminum Co.............. 7,300 106,763
Gibraltar Steel Corp.*........... 3,900 89,700
Kaiser Aluminum Corp.*........... 9,400 115,150
Steel Dynamics, Inc.*............ 5,500 137,500
--------------
449,113
--------------
TOTAL BASIC MATERIALS (6.5%) ... 791,038
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (4.6%)
American Disposal Services,
Inc.*........................... 3,900 87,750
Philip Services Corp.*........... 6,300 100,013
Superior Services, Inc.*......... 5,000 118,750
United States Filter Corp.* ..... 4,300 117,175
United Waste Systems, Inc.* ..... 3,300 135,300
--------------
558,988
--------------
PRINTING, PUBLISHING &
BROADCASTING (6.6%)
Evergreen Media Corp.
(Class A)*...................... 8,800 392,700
Sinclair Broadcast Group, Inc.* . 4,700 145,113
Westwood One, Inc.*.............. 8,300 267,675
--------------
805,488
--------------
PROFESSIONAL SERVICES (6.0%)
Carematrix Corp.*................ 4,500 111,094
CORESTAFF, Inc.*................. 5,900 159,300
Equity Corp. International* ..... 3,800 91,913
Ha-Lo Industries, Inc.*.......... 12,800 302,400
ProMedCo Management Co.*......... 7,700 65,450
--------------
730,157
--------------
TRUCKING, SHIPPING (1.6%)
Knightsbridge Tankers Ltd. ...... 3,900 98,475
OMI Corp.*....................... 11,500 109,969
--------------
208,444
--------------
TOTAL BUSINESS SERVICES (18.8%) 2,303,077
--------------
CAPITAL GOODS
AEROSPACE (1.1%)
DONCASTERS PLC (ADR)*............ 5,900 136,438
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (2.0%)
Buckeye Cellulose Corp.*......... 3,400 114,750
Hughes Supply, Inc............... 3,200 128,000
--------------
242,750
--------------
ELECTRICAL EQUIPMENT (0.8%)
Hadco Corp.*..................... 1,500 98,250
--------------
TOTAL CAPITAL GOODS (3.9%) ..... 477,438
--------------
CONSUMER CYCLICALS
AIRLINES (1.5%)
Alaska Air Group, Inc.*.......... 3,400 $ 87,125
Atlas Air, Inc.*................. 2,900 100,050
--------------
187,175
--------------
APPAREL, TEXTILE (5.2%)
Mohawk Industries, Inc.*......... 8,500 193,375
Nautica Enterprises, Inc.* ...... 5,900 155,980
Polymer Group, Inc.*............. 5,700 91,912
Stage Stores, Inc.*.............. 3,900 101,883
Tommy Hilfiger Corp.*............ 2,400 96,450
--------------
639,600
--------------
AUTO RELATED (4.8%)
Budget Group, Inc. (Class A)* ... 8,400 289,800
Federal-Mogul Corp............... 4,400 154,000
Miller Industries, Inc.*......... 8,900 142,400
--------------
586,200
--------------
AUTOS & TRUCKS (0.7%)
Cross-Continent Auto
Retailers, Inc.*................ 7,700 81,330
--------------
FOOD SERVICES, LODGING (4.5%)
American General Hospitality
Corp............................ 3,200 79,200
Doubletree Corp.*................ 3,200 131,600
Innkeepers USA Trust............. 7,300 109,500
Interstate Hotels Co.*........... 4,000 117,750
Suburban Lodges of America,
Inc.*........................... 5,600 117,600
--------------
555,650
--------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.5%)
Furniture Brands
International, Inc.*............ 4,700 91,060
Industrie Natuzzi (ADR).......... 3,400 87,125
--------------
178,185
--------------
LEISURE RELATED (0.7%)
Harman International
Industries, Inc................. 1,900 80,038
--------------
RETAIL--GENERAL (2.6%)
Claire's Stores, Inc............. 3,400 59,500
Consolidated Stores Corp.* ...... 4,300 149,425
Petco Animal Supplies, Inc.* .... 3,700 111,000
--------------
319,925
--------------
TOTAL CONSUMER CYCLICALS (21.5%) 2,628,103
--------------
CONSUMER NONCYCLICALS
CONTAINERS (1.7%)
Silgan Holdings, Inc.*........... 5,500 213,125
--------------
DRUGS (2.7%)
Geltex Pharmaceuticals, Inc.* ... 5,100 102,638
Jones Medical Industries, Inc. .. 2,500 118,750
MedImmune, Inc.*................. 6,200 114,700
--------------
336,088
--------------
46
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------
FOODS (0.8%)
Fine Host Corp.*................. 3,300 $ 103,950
--------------
HOSPITAL SUPPLIES & SERVICES (2.5%)
Mid Atlantic Medical Services,
Inc.*........................... 3,800 59,138
National Surgery Centers, Inc.* . 3,500 123,813
NovaCare, Inc.*.................. 8,500 117,938
--------------
300,889
--------------
RETAIL--FOOD (0.8%)
United Natural Foods, Inc.* ..... 4,000 84,000
--------------
TOTAL CONSUMER NONCYCLICALS (8.5%) 1,038,052
--------------
CREDIT SENSITIVE
FINANCIAL SERVICES (2.1%)
FIRSTPLUS Financial Group,
Inc.*........................... 4,300 146,200
Healthcare Financial Partners,
Inc.*........................... 5,500 112,063
--------------
258,263
--------------
INSURANCE (0.9%)
PennCorp Financial Group, Inc. .. 3,000 115,500
--------------
REAL ESTATE (1.6%)
JP Realty, Inc................... 3,500 94,938
Macerich Co...................... 3,400 94,350
--------------
189,288
--------------
TOTAL CREDIT SENSITIVE (4.6%) .. 563,051
--------------
ENERGY
OIL--DOMESTIC (1.4%)
Costilla Energy, Inc.*........... 6,300 81,113
KCS Energy, Inc.................. 2,100 85,575
--------------
166,688
--------------
OIL--SUPPLIES & CONSTRUCTION (2.6%)
Parker Drilling Co.*............. 12,300 136,838
Rowan Cos., Inc.*................ 6,500 183,219
--------------
320,057
--------------
TOTAL ENERGY (4.0%)............. 486,745
--------------
TECHNOLOGY
ELECTRONICS (3.5%)
BMC Industries, Inc.............. 2,000 68,500
Electronic Technologies, Inc.* .. 1,600 52,400
Insight Enterprises, Inc.* ...... 2,600 78,163
PMC-Sierra, Inc.*................ 4,400 115,500
Spectrum Holobyte, Inc.*......... 13,800 $ 67,275
3D Labs, Inc. Ltd.*.............. 1,600 46,400
--------------
428,238
--------------
OFFICE EQUIPMENT (2.9%)
Data General Corp.*.............. 4,500 117,000
Platinum Technology, Inc.* ...... 6,300 83,475
Read-Rite Corp.*................. 3,700 77,238
Sterling Software, Inc.*......... 2,300 71,875
--------------
349,588
--------------
OFFICE EQUIPMENT SERVICES (7.1%)
Cognos, Inc.*.................... 5,500 171,188
Comverse Technology, Inc.* ...... 7,700 400,400
Fore Systems, Inc.*.............. 3,300 44,963
Rational Software Corp.*......... 7,900 132,819
Saville Systems Ireland (ADR)* .. 2,300 119,600
--------------
868,970
--------------
TELECOMMUNICATIONS (5.0%)
ACC Corp.*....................... 4,300 132,763
Comnet Cellular, Inc.*........... 3,400 118,150
ICG Communications, Inc.*........ 5,500 105,875
Jacor Communications, Inc.* ..... 3,400 130,050
Millicom International Cellular
SA*............................. 2,300 109,825
TeleTech Holdings, Inc.*......... 1,200 31,275
--------------
627,938
--------------
TOTAL TECHNOLOGY (18.5%)........ 2,274,734
--------------
TOTAL COMMON STOCKS (86.3%) ....
(Cost $9,750,714)............... 10,562,238
--------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (18.8%)
Federal Home Loan Bank
5.39%, due 07/03/97............. $2,300,000 2,299,311
--------------
TOTAL SHORT-TERM DEBT SECURITIES (18.8%)
(Amortized Cost $2,299,311) .... 2,299,311
--------------
TOTAL INVESTMENTS (105.1%) .....
(Cost/Amortized Cost $12,050,025) 12,861,549
OTHER ASSETS
LESS LIABILITIES (-5.1%)........ (625,553)
--------------
NET ASSETS (100.0%).............. $12,235,996
==============
</TABLE>
- ------------
* Non-income producing.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
47
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.3%)
Akzo Nobel N.V. .................. 1,655 $ 226,786
Bayer AG ......................... 4,535 174,753
Ciba Specialty Chemicals AG* .... 1,802 166,566
Hitachi Chemical Co. Ltd. ........ 15,000 132,187
Holliday Chemical Holdings PLC ... 23,700 56,418
Kuraray Co. Ltd. ................. 10,000 99,468
Nippon Chemi-Con Corp. ........... 6,000 31,725
Toagosei Co. Ltd. ................ 15,000 58,503
------------
946,406
------------
CHEMICALS--SPECIALTY (0.1%)
Cytec Industries, Inc.* .......... 4,800 179,400
NGK Insulators ................... 10,000 109,938
------------
289,338
------------
PAPER (0.1%)
Jefferson Smurfit Corp.* ......... 8,000 128,000
Jefferson Smurfit Group PLC ..... 21,831 62,872
KNP BT (Kon) N.V. ................ 6,000 136,623
UPM-Kymmene Oy ................... 2,810 65,005
------------
392,500
------------
STEEL (0.2%)
Koninklijke Hoogovens N.V. ...... 2,586 144,116
NatSteel Ltd. .................... 25,000 63,650
Pohang Iron & Steel Co. Ltd.
(ADR) ........................... 2,000 64,000
Rautaruukki Oy ................... 8,095 85,049
Usinor Sacilor ................... 5,280 95,237
------------
452,052
------------
TOTAL BASIC MATERIALS (0.7%) ... 2,080,296
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
USA Waste Services, Inc.* ........ 22,600 872,925
Waste Management, Inc. ........... 22,400 719,600
------------
1,592,525
------------
PRINTING, PUBLISHING &
BROADCASTING (0.9%)
Cablevision Systems Corp.
(Class A)* ...................... 3,900 208,650
Carlton Communications PLC ...... 15,500 130,949
Liberty Media Group (Class A)* ... 31,200 741,000
New Straits Times Press BHD ..... 8,000 46,910
New York Times Co. ............... 14,500 717,750
Time Warner, Inc. ................ 9,200 443,900
United News & Media PLC .......... 10,570 122,555
Viacom, Inc. (Class B)* .......... 2,000 60,000
------------
2,471,714
------------
TRUCKING, SHIPPING (0.1%)
Bergesen Dy AS (A Shares) ........ 5,380 127,502
Knightsbridge Tankers Ltd. ...... 8,800 222,200
OMI Corp.* ....................... 5,000 47,813
------------
397,515
------------
TOTAL BUSINESS SERVICES (1.5%) .. 4,461,754
------------
CAPITAL GOODS
AEROSPACE (0.2%)
Boeing Co. ....................... 6,900 $ 366,131
British Aerospace ................ 5,357 119,186
Coltec Industries, Inc.* ......... 11,000 214,500
------------
699,817
------------
BUILDING & CONSTRUCTION (0.3%)
Beazer Group PLC* ................ 21,000 57,682
Bouygues ......................... 1,203 98,976
Daito Trust Construction Co. .... 14,100 166,085
GTM Entrepose .................... 1,116 55,850
Makita Corp. ..................... 8,000 117,267
Matsushita Electric Works Ltd. .. 11,000 124,771
National House Industrial Co. ... 7,000 92,226
Societe Technip .................. 1,075 124,755
Toda Construction ................ 25,000 174,941
------------
1,012,553
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.2%)
BPB PLC .......................... 11,300 61,042
Holderbank Financiere Glaris AG . 155 146,351
Martin Marietta Materials, Inc. . 10,200 330,225
Rugby Group PLC .................. 58,160 117,151
------------
654,769
------------
ELECTRICAL EQUIPMENT (1.1%)
Aiwa Co. Ltd. .................... 7,000 160,632
Daikin Industries Ltd. ........... 14,000 127,040
General Electric Co. ............. 28,100 1,837,038
Johnson Electric Holdings Ltd. .. 24,000 71,560
Legrand SA ....................... 425 74,851
Mabuchi Motor Co. ................ 1,500 87,034
Pioneer Electric Corp. ........... 6,000 145,537
Sony Corp. ....................... 1,500 130,748
Sumitomo Electric Industries .... 7,000 117,267
Westinghouse Electric Corp. ..... 13,500 312,188
------------
3,063,895
------------
MACHINERY (1.5%)
Allied Signal, Inc. .............. 14,900 1,251,600
Fujitec Co. Ltd. ................. 9,000 106,797
Ishikawajima Harima Heavy
Industries ...................... 16,000 62,822
Keystone International, Inc. .... 38,200 1,325,063
KSB AG* .......................... 300 74,316
Legris Industries ................ 1,990 93,799
Mitsubishi Heavy Industries Ltd. . 11,000 84,364
Rauma Oy ......................... 139 3,189
Schindler Holding AG
Participating Certificate ....... 102 127,456
Schindler Holding AG
Registered ...................... 50 64,190
Siebe PLC ........................ 7,800 132,054
Stork N.V. ....................... 2,000 81,505
TI Group PLC ..................... 14,014 122,128
United Technologies Corp. ........ 7,500 622,500
Valmet Oy* ....................... 3,600 62,321
------------
4,214,104
------------
TOTAL CAPITAL GOODS (3.3%) ..... 9,645,138
------------
48
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Northwest Airlines Corp.
(Class A)* ...................... 10,500 $ 381,938
------------
APPAREL, TEXTILE (0.5%)
Adidas AG + ...................... 1,000 111,818
Cone Mills Corp.* ................ 12,000 96,000
Onward Kashiyama Co. Ltd. ........ 8,000 132,624
Reebok International Ltd. ........ 23,150 1,082,263
Shaw Industries, Inc. ............ 12,200 129,625
------------
1,552,330
------------
AUTO RELATED (0.5%)
Circuit City Stores, Inc.-CarMax
Group* .......................... 22,400 320,600
Continental AG ................... 6,900 171,323
NGK Spark Plug Co. ............... 8,000 87,252
Republic Industries, Inc.* ...... 21,200 527,350
Sumitomo Rubber Industries, Inc. 13,000 87,453
Toyoda Automatic Loom Works ..... 7,000 158,799
------------
1,352,777
------------
AUTOS & TRUCKS (0.2%)
Bajaj Auto Ltd. (GDR) ............ 1,500 51,638
Harley-Davidson, Inc. ............ 4,100 196,544
Honda Motor Corp. ................ 4,000 120,408
Toyota Motor Corp. ............... 6,000 176,948
UMW Holdings BHD ................. 5,000 23,574
Volkswagen AG .................... 165 125,082
------------
694,194
------------
FOOD SERVICES, LODGING (0.7%)
Compass Group PLC ................ 16,100 180,643
Host Marriott Corp.* ............. 16,200 288,563
John Q Hammons Hotels, Inc.
(Class A)* ...................... 15,000 138,750
La Quinta Motor Inns, Inc. ...... 27,900 610,313
McDonald's Corp. ................. 16,800 811,650
------------
2,029,919
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.7%)
First Brands Corp. ............... 7,500 172,031
Hunter Douglas N.V. .............. 1,523 129,563
Sunbeam Corp. .................... 44,900 1,694,975
------------
1,996,569
------------
LEISURE RELATED (0.7%)
Disney (Walt) Co. ................ 11,666 936,197
Granada Group PLC ................ 9,900 130,196
ITT Corp.* ....................... 10,000 610,625
Ladbroke Group PLC ............... 31,084 121,602
Nintendo Co. ..................... 1,100 92,139
------------
1,890,759
------------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. .............. 3,000 120,670
------------
RETAIL--GENERAL (1.1%)
BAA PLC .......................... 17,300 159,404
Boots Co. PLC .................... 8,400 98,374
Dayton Hudson Corp. .............. 14,200 755,263
Dickson Concepts International
Ltd. ............................ 18,000 65,520
Federated Department Stores,
Inc.* ........................... 10,500 $ 364,875
Fingerhut Companies, Inc. ........ 12,000 209,250
Kingfisher PLC ................... 8,500 96,503
Kokuyo Co. ....................... 5,000 135,241
Rite Aid Corp. ................... 6,000 299,250
Sears, Roebuck & Co. ............. 18,700 1,005,125
Vendex International N.V. ........ 1,711 93,697
------------
3,282,502
------------
TOTAL CONSUMER CYCLICALS (4.6%) 13,301,658
------------
<PAGE>
CONSUMER NONCYCLICALS
BEVERAGES (0.8%)
Bass Breweries ................... 9,380 114,457
Coca-Cola Co. .................... 29,800 2,011,500
Guinness PLC ..................... 6,000 58,731
Scottish & Newcastle PLC ......... 11,000 118,385
Whitbread PLC* ................... 11,000 138,894
------------
2,441,967
------------
CONTAINERS (0.1%)
Schmalbach Lubeca AG* ............ 880 197,810
------------
DRUGS (2.2%)
Astra AB (A Shares) .............. 3,500 65,261
Centocor, Inc.* .................. 38,600 1,199,013
Daiichi Pharmaceutical Co. ...... 8,000 141,000
Geltex Pharmaceuticals, Inc.* ... 3,200 64,400
McKesson Corp. ................... 2,500 193,750
Merck KGAA ....................... 2,100 91,519
Merck & Co., Inc. ................ 13,410 1,387,935
Novartis AG ...................... 202 322,813
Orion-Yhtymae Oy (B Shares) ..... 3,030 114,954
Pfizer, Inc. ..................... 15,310 1,829,545
Sankyo Co. ....................... 3,000 100,777
Santen Pharmaceutical Co. ........ 2,000 40,311
Taisho Pharmaceutical Co. ........ 6,000 161,766
Takeda Chemical Industries ...... 3,000 84,286
Warner-Lambert Co. ............... 4,000 497,000
Yamanouchi Pharmaceutical ........ 7,000 188,116
------------
6,482,446
------------
FOODS (0.4%)
Campbell Soup Co. ................ 17,340 867,000
Huhtamaki Oy Series I ............ 1,300 56,012
Nestle AG ........................ 131 172,753
Orkla A/S 'A' .................... 930 68,598
Parmalat Finanziaria Spa ......... 59,650 84,359
------------
1,248,722
------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Boston Scientific Corp.* ......... 500 30,719
Columbia/HCA Healthcare Corp. ... 20,600 809,838
Medtronic, Inc. .................. 9,600 777,600
Oxford Health Plans, Inc.* ...... 8,100 581,175
PT Tempo Scan Pacific* ........... 23,000 51,542
Steris Corp.* .................... 7,100 265,363
------------
2,516,237
------------
RETAIL--FOOD (0.5%)
Delhaize Freres .................. 980 51,476
Familymart Co. ................... 13,000 637,466
49
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Promodes ......................... 300 $ 116,851
Seven-Eleven Japan Ltd. .......... 4,000 302,242
Woolworths Ltd. .................. 61,026 200,438
------------
1,308,473
------------
SOAPS & TOILETRIES (0.9%)
Colgate Palmolive Co. ............ 20,260 1,321,965
Gillette Corp. ................... 14,305 1,355,399
------------
2,677,364
------------
TOBACCO (1.2%)
Japan Tobacco, Inc. .............. 20 157,927
Loews Corp. ...................... 4,000 400,500
Philip Morris Cos., Inc. ......... 62,300 2,764,563
Seita ............................ 3,500 110,776
Tabacalera SA .................... 1,980 106,270
------------
3,540,036
------------
TOTAL CONSUMER NONCYCLICALS (7.0%) 20,413,055
------------
CREDIT SENSITIVE
BANKS (1.5%)
Allied Irish Bank ................ 26,000 180,542
AMMB Holdings BHD ................ 9,000 55,983
AMMB Holdings BHD Rights-Bonds* . 827 77
AMMB Holdings BHD Rights-Equity* 9,000 53
Banco Bilbao Vizcaya SA .......... 2,000 162,441
Banco Santander SA ............... 2,970 91,492
Bangkok Bank Public Co. .......... 2,000 13,743
PT Bank Dagang Nasional
Indonesia Tbk ................... 136,000 96,464
Banque Nationale de Paris* ...... 1,500 61,820
Chase Manhattan Corp. ............ 23,900 2,319,786
Cie Bancaire SA .................. 7 893
Credito Italiano Spa ............. 48,000 87,783
Dao Heng Bank Group Ltd. ......... 3,000 16,419
Den Danske Bank .................. 1,100 107,025
Den Norske Bank ASA .............. 24,000 94,087
Istituto Mobilare Italiano ...... 9,400 84,572
Kredietbank ...................... 130 52,387
Long-Term Credit Bank of Japan ... 22,000 95,018
Overseas Union Bank Ltd. ......... 11,000 68,476
Philippine Commercial
International Bank .............. 1,000 9,668
Seventy-Seven Bank Ltd. .......... 11,000 106,535
Societe Generale ................. 1,058 118,102
Sparbanken Sverige AB
(A Shares) ...................... 5,220 116,257
State Bank of India (GDR)* ...... 2,700 71,550
Thai Farmers Bank Public
Co.--Warrants* .................. 375 170
Wing Hang Bank Ltd. .............. 18,000 108,735
Yamaguchi Bank ................... 7,000 105,052
------------
4,225,130
------------
FINANCIAL SERVICES (2.4%)
American Express Co. ............. 4,000 298,000
Associated First Capital Corp. .. 5,000 277,500
Beneficial Corp. ................. 6,250 444,141
Credit Saison Co. ................ 8,000 195,445
MBNA Corp. ....................... 65,250 2,389,781
Merrill Lynch & Co., Inc. ........ 10,600 632,025
Morgan Stanley, Dean Witter,
Discover & Co. .................. 41,700 $ 1,795,703
Peregrine Investment Holdings
Ltd. ............................ 52,000 107,057
PMI Group, Inc. .................. 10,400 648,700
Salomon, Inc. .................... 3,900 216,938
Worms Et Compagnie* .............. 484 28,661
------------
7,033,951
------------
INSURANCE (1.6%)
AMEV N.V. ........................ 6,310 280,935
Assurances Generales de France ... 4,510 144,125
Baloise Holdings* ................ 60 142,965
General Accident ................. 4,700 68,617
ING Groep N.V. ................... 6,354 292,928
MGIC Investment Corp. ............ 9,000 431,438
PennCorp Financial Group, Inc. .. 16,200 623,700
QBE Insurance Group Ltd. ......... 18,000 108,727
Royal & Sun Alliance Insurance
Group PLC ....................... 9,500 70,059
TIG Holdings, Inc. ............... 4,600 143,750
Travelers Group, Inc. ............ 32,666 2,060,000
Trygg-Hansa AB (B Shares) ........ 3,800 76,021
United Assurance Group PLC ...... 8,100 57,644
Zurich Versicherungs ............. 246 97,861
------------
4,598,770
------------
REAL ESTATE (0.0%)
Societe des Immeubles de France
SA* ............................. 345 19,960
Unibail SA ....................... 950 88,910
------------
108,870
------------
UTILITY--ELECTRIC (0.2%)
Energy Group PLC* ................ 6,550 69,893
Hong Kong Electric Holdings Ltd. 20,000 80,544
Malakoff BHD ..................... 10,000 43,582
Manila Electric Co. .............. 1,860 9,167
Powergen ......................... 11,400 135,690
Veba AG .......................... 4,450 251,348
------------
590,224
------------
UTILITY--GAS (0.1%)
Anglian Water PLC ................ 14,080 152,705
Scottish Power PLC ............... 25,500 165,979
------------
318,684
------------
UTILITY--TELEPHONE (0.8%)
British Telecommunications ...... 20,100 149,234
Cable & Wireless ................. 12,300 113,129
Frontier Corp. ................... 3,000 59,813
Philippine Long Distance
Telephone Co. ................... 1,000 32,416
Telecom Italia Spa ............... 63,900 191,261
Telefonica de Espana SA .......... 6,600 190,776
Telekom Malaysia BHD ............. 16,500 77,139
Telephone & Data Systems, Inc. .. 7,500 284,531
Teleport Communications Group,
Inc. (Class A)* ................. 33,400 1,139,775
------------
2,238,074
------------
TOTAL CREDIT SENSITIVE (6.6%) ... 19,113,703
------------
50
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
ENERGY
COAL & GAS PIPELINES (0.0%)
BG PLC ........................... 21,000 $ 77,259
------------
OIL--DOMESTIC (0.5%)
Apache Corp. ..................... 14,100 458,250
Murphy Oil Corp. ................. 4,000 195,000
Tom Brown, Inc.* ................. 7,500 159,375
USX-Marathon Group ............... 19,800 571,725
------------
1,384,350
------------
OIL--INTERNATIONAL (0.8%)
British Petroleum Co. PLC ........ 11,100 137,940
Canadian Occidental .............. 2,100 47,250
Elf Aquitaine .................... 2,110 227,635
ENI Spa .......................... 12,400 70,183
Gulf Canada Resources Ltd.* ..... 34,700 288,444
Repsol SA ........................ 1,410 59,604
Shell Transport & Trading Co. PLC 20,100 137,021
Texaco, Inc. ..................... 11,000 1,196,250
Total Campagnie Francaise ........ 2,881 291,203
------------
2,455,530
------------
OIL--SUPPLIES & CONSTRUCTION (1.9%)
Baker Hughes, Inc. ............... 9,250 357,859
BJ Services Co.* ................. 12,200 654,225
Compagnie Generale de Geophysique
(ADR)* .......................... 4,000 77,000
Halliburton Co. .................. 16,750 1,327,438
Nabors Industries, Inc.* ......... 27,000 675,000
Noble Drilling Corp.* ............ 14,000 315,875
Parker Drilling Co.* ............. 10,000 111,250
Santa Fe International Corp.* ... 5,000 170,000
Schlumberger, Ltd. ............... 2,000 250,000
Transocean Offshore, Inc. ........ 20,900 1,517,863
------------
5,456,510
------------
RAILROADS (0.4%)
Union Pacific Corp. .............. 14,000 987,000
------------
TOTAL ENERGY (3.6%) ............. 10,360,649
------------
TECHNOLOGY
ELECTRONICS (2.2%)
Altera Corp.* .................... 13,600 686,800
Applied Materials, Inc.* ......... 11,500 814,344
Cisco Systems, Inc.* ............. 24,500 1,644,563
Hirose Electric Co. Ltd. ......... 2,000 137,161
Hoya Corp. ....................... 5,000 222,494
Intel Corp. ...................... 7,333 1,039,911
Micron Electronics, Inc.* ........ 1,600 28,500
Micron Technology, Inc.* ......... 6,250 249,609
National Semiconductor Corp.* ... 7,500 229,688
Rohm Co. Ltd. .................... 4,000 411,831
Seagate Technology, Inc.* ........ 2,800 98,525
SGS-Thomson Microelectronics
N.V.* ........................... 940 74,219
SMH AG ........................... 540 73,115
TDK Corp. ........................ 5,000 366,896
Teradyne, Inc.* .................. 4,200 164,850
Varitronix International Ltd. ... 55,000 93,355
------------
6,335,861
------------
OFFICE EQUIPMENT (1.0%)
Barco N.V. ....................... 469 $ 95,020
Canon, Inc. ...................... 6,000 163,337
Ceridian Corp.* .................. 11,000 464,750
Compaq Computer Corp.* ........... 10,600 1,052,050
Dell Computer Corp.* ............. 6,300 739,856
Storage Technology Corp.* ........ 7,750 344,875
------------
2,859,888
------------
OFFICE EQUIPMENT SERVICES (1.3%)
First Data Corp. ................. 18,800 826,025
Microsoft Corp.* ................. 8,900 1,124,738
Netscape Communications Corp.* .. 9,600 307,800
Oracle Corp.* .................... 30,400 1,531,400
------------
3,789,963
------------
TELECOMMUNICATIONS (1.3%)
ADC Telecommunications, Inc.* .... 26,000 867,750
Asia Satellite Telecommunications
Holdings Ltd. ................... 18,000 55,181
DDI Corp. ........................ 29 214,065
Nextel Communications, Inc.
(Class A)* ...................... 9,900 187,481
Nokia Corp. (ADR) ................ 3,000 221,250
PT Indosat ....................... 45,000 134,611
PT Telekomunikasi Indonesia ..... 33,000 53,937
SK Telecom Co. Ltd. .............. 9,470 95,292
Tellabs, Inc.* ................... 13,500 754,313
Videsh Sanchar Nigam Ltd. (GDR)*
+ ............................... 1,700 35,411
Vodafone Group ................... 20,710 100,842
WorldCom, Inc.* .................. 36,725 1,175,200
------------
3,895,333
------------
TOTAL TECHNOLOGY (5.8%) ......... 16,881,045
------------
DIVERSIFIED
MISCELLANEOUS (0.7%)
Berjaya Sports Toto BHD .......... 16,000 75,436
BTR PLC .......................... 23,000 78,682
Cie Generale des Eaux ............ 943 120,830
Citic Pacific Ltd. ............... 7,000 43,731
Compagnie Generale de
Eaux--Warrants* ................. 943 565
First Pacific Co. ................ 42,734 54,608
Montedison Spa* .................. 126,000 83,132
Smith (Howard) Ltd. .............. 4,000 38,055
Swire Pacific Ltd. (Class A) .... 7,000 63,022
Tomkins PLC ...................... 46,800 202,561
U.S. Industries, Inc.* ........... 28,000 997,500
------------
TOTAL DIVERSIFIED (0.7%) ........ 1,758,122
------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (33.8%)
(Cost $77,918,228) .............. 98,015,420
------------
PREFERRED STOCKS:
BASIC MATERIALS (0.0%)
CHEMICALS
Henkel KGAA ...................... 1,694 95,390
------------
51
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
CONSUMER CYCLICALS (0.0%)
RETAIL--GENERAL
Hornbach Holding AG .............. 920 $ 76,759
------------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Nokia Oy Cum ..................... 1,580 118,150
------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $198,834) ................. 290,299
------------
PRINCIPAL
AMOUNT
-------------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (1.9%)
PRINTING, PUBLISHING & BROADCASTING
Time Warner, Inc.
9.125%, 01/15/13 ................ $ 5,000,000 5,551,500
------------
CREDIT SENSITIVE
BANKS (4.5%)
Chase Manhattan Corp.
8.625% Sub. Deb., 05/01/02 ..... 5,500,000 5,899,300
Deutsche Bank
6.7%, 12/13/06 .................. 5,000,000 4,875,000
St. George Bank Ltd.
7.15%, 10/15/05 +................ 2,000,000 1,989,800
Sumitomo Bank International
0.75% Conv., 05/31/01 . . . . . . Yen11,000,000 122,851
------------
12,886,951
------------
FINANCIAL SERVICES (1.9%)
Ford Motor Credit Co.
6.125%, 01/09/06 ................ $ 6,000,000 5,634,000
------------
FOREIGN GOVERNMENT (3.0%)
Province of Quebec:
7.5%, 07/15/23 .................. 2,500,000 2,457,775
7.125%, 02/09/24 ................ 6,500,000 6,132,100
------------
8,589,875
------------
INSURANCE (2.1%)
Zurich Capital Trust
8.376%, 06/01/37 +............... 6,000,000 6,195,120
------------
MORTGAGE RELATED (14.1%)
Federal Home Loan Mortgage Corp.
7.0%, 09/01/11 .................. 8,561,317 8,545,265
Federal National Mortgage
Association:
6.0%, 11/01/10 .................. 15,627,768 15,056,382
6.5%, 01/01/11 .................. 3,575,529 3,501,784
7.0%, 05/01/26 .................. 8,776,104 8,600,609
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
Premier Auto Trust
7.15%, 02/04/99 ................. $ 4,965,408 $ 4,980,900
-------------
40,684,940
-------------
U.S. GOVERNMENT (31.0%)
U.S. Treasury:
6.125% Note, 08/31/98 ........... 28,400,000 28,471,000
6.75% Note, 04/30/00 ............ 7,000,000 7,091,875
6.25% Note, 04/30/01 ............ 18,300,000 18,254,250
6.5% Note, 05/31/02 ............. 19,350,000 19,422,560
6.875% Note, 05/15/06 ........... 8,150,000 8,318,094
6.625% Bond, 02/15/27 ........... 8,525,000 8,338,514
-------------
89,896,293
-------------
TOTAL CREDIT SENSITIVE (56.6%)
................................. 163,887,179
-------------
TOTAL LONG-TERM DEBT SECURITIES (58.5%)
(Amortized Cost $169,323,218) ... 169,438,679
-------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Associates Corp. of North America
6.3%, due 07/01/97 .............. 1,000,000 1,000,000
Bankers Trust Securities
6.3%, due 07/01/97 .............. 2,200,000 2,200,000
Dresdner U.S. Finance, Inc.
6.25%, due 07/01/97 ............. 14,500,000 14,500,000
-------------
TOTAL COMMERCIAL PAPER (6.1%) 17,700,000
-------------
TIME DEPOSITS (0.2%)
Mitsubishi Bank Ltd.-N.Y.
6.375%, due 07/01/97 ............ 500,000 500,000
-------------
TOTAL SHORT-TERM DEBT SECURITIES (6.3%)
(Amortized Cost $18,200,000) .... 18,200,000
-------------
TOTAL INVESTMENTS (98.7%)
(Cost/Amortized Cost $265,640,280) 285,944,398
OTHER ASSETS
LESS LIABILITIES (1.3%) 3,890,542
-------------
NET ASSETS (100.0%) .............. $289,834,940
=============
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS
BY GLOBAL REGION
As a Percentage of Total
Investments
<S> <C>
Australia................ 0.8%
Canada................... 0.1
France................... 0.7
Germany.................. 0.5
Japan.................... 2.5
Netherlands.............. 0.5
Scandinavia.............. 0.5
Southeast Asia........... 0.7
Switzerland.............. 0.5
United Kingdom........... 1.4
United States**.......... 91.3
Other European
Countries............... 0.5
-------
100.0%
=======
</TABLE>
- ------------
* Non-income producing.
** Includes Short-Term Debt Securities of 6.4%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1997, these securities amounted to $8,332,149 or
2.9% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
52
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.5%)
Akzo Nobel N.V.................... 13,380 $ 1,833,471
Bayer AG.......................... 40,500 1,560,640
Ciba Specialty Chemicals AG* ..... 16,483 1,523,591
Hitachi Chemical Co. Ltd.......... 159,000 1,401,187
Holliday Chemical Holdings PLC ... 214,000 509,431
Kuraray Co. Ltd................... 96,000 954,891
Nippon Chemi-Con Corp. ........... 62,000 327,825
Toagosei Co. Ltd. ................ 158,000 616,229
-------------
8,727,265
-------------
CHEMICALS--SPECIALTY (0.1%)
Crompton & Knowles Corp........... 26,000 578,500
Cytec Industries, Inc.*........... 7,900 295,263
NGK Insulators.................... 92,000 1,011,430
-------------
1,885,193
-------------
METALS & MINING (0.1%)
Century Aluminum Co............... 19,200 280,800
Gibraltar Steel Corp.*............ 8,400 193,200
Kaiser Aluminum Corp.*............ 19,100 233,975
Nord Resources Corp.*............. 27,939 87,309
Randgold Resources Ltd.* +........ 30,300 501,465
Steel Dynamics, Inc.*............. 14,100 352,500
-------------
1,649,249
-------------
PAPER (0.2%)
Jefferson Smurfit Corp.*.......... 39,600 633,600
Jefferson Smurfit Group PLC ...... 180,000 518,388
KNP BT (Kon) N.V. ................ 53,000 1,206,838
UPM-Kymmene Oy.................... 25,320 585,736
-------------
2,944,562
-------------
STEEL (0.2%)
Koninklijke Hoogovens N.V......... 22,448 1,251,009
NatSteel Ltd. .................... 220,000 560,118
Pohang Iron & Steel Co. Ltd.
(ADR)............................ 15,000 480,000
Rautaruukki Oy.................... 72,872 765,622
Usinor Sacilor.................... 47,000 847,755
-------------
3,904,504
-------------
TOTAL BASIC MATERIALS (1.1%) .... 19,110,773
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
Philip Services Corp.*............ 12,400 196,850
Superior Services, Inc.*.......... 9,700 230,375
USA Waste Services, Inc.*......... 184,400 7,122,450
United States Filter Corp.* ...... 11,300 307,925
United Waste Systems, Inc.* ...... 4,700 192,700
Waste Management, Inc. ........... 170,200 5,467,675
-------------
13,517,975
-------------
PRINTING, PUBLISHING &
BROADCASTING (1.4%)
Cablevision Systems Corp.
(Class A)*....................... 87,400 4,675,900
Carlton Communications PLC........ 134,500 1,136,303
Evergreen Media Corp.
(Class A)*....................... 16,300 727,388
Liberty Media Group
(Class A)*....................... 221,350 5,257,063
New Straits Times Press BHD ...... 65,000 $ 381,141
New York Times Co................. 103,300 5,113,350
Sinclair Broadcast Group, Inc.* .. 9,800 302,575
Time Warner, Inc.................. 70,600 3,406,450
United News & Media PLC........... 93,800 1,087,577
Viacom, Inc. (Class B)*........... 8,000 240,000
Westwood One, Inc.*............... 17,200 554,700
-------------
22,882,447
-------------
<PAGE>
PROFESSIONAL SERVICES (0.1%)
CORESTAFF, Inc.*.................. 9,500 256,500
Equity Corporation
International*................... 11,250 272,109
Ha-Lo Industries, Inc.*........... 24,262 573,190
-------------
1,101,799
-------------
TRUCKING, SHIPPING (0.2%)
Bergesen Dy AS (A Shares)......... 47,300 1,120,977
Knightsbridge Tankers Ltd. ...... 84,800 2,141,200
OMI Corp.*........................ 50,000 478,125
-------------
3,740,302
-------------
TOTAL BUSINESS SERVICES (2.5%) .. 41,242,523
-------------
CAPITAL GOODS
AEROSPACE (0.4%)
British Aerospace................. 50,710 1,128,232
Boeing Co......................... 65,200 3,459,675
Coltec Industries, Inc.*.......... 115,000 2,242,500
DONCASTERS PLC (ADR)*............. 15,400 356,125
-------------
7,186,532
-------------
BUILDING & CONSTRUCTION (0.6%)
Beazer Group PLC*................. 187,000 513,643
Bouygues.......................... 10,708 880,991
Daito Trust Construction Co. ..... 132,500 1,560,728
GTM Entrepose..................... 9,953 498,099
Makita Corp. ..................... 89,000 1,304,598
Matsushita Electric Works Ltd. ... 104,000 1,179,653
National House Industrial Co. ... 53,000 698,281
Societe Technip................... 10,350 1,201,133
Toda Construction................. 250,000 1,749,411
-------------
9,586,537
-------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.4%)
BPB PLC........................... 103,100 556,941
Buckeye Cellulose Corp.*.......... 8,900 300,375
Holderbank Financiere Glaris AG .. 1,385 1,307,713
Hughes Supply, Inc................ 8,400 336,000
Martin Marietta Materials, Inc. .. 110,000 3,561,250
Rugby Group PLC................... 447,460 901,313
-------------
6,963,592
-------------
ELECTRICAL EQUIPMENT (1.5%)
Aiwa Co. Ltd...................... 53,000 1,216,212
Daikin Industries Ltd............. 140,000 1,270,395
General Electric Co............... 225,600 14,748,600
Johnson Electric Holdings Ltd. ... 215,000 641,062
Legrand SA........................ 3,800 669,253
Mabuchi Motor Co.................. 13,000 754,297
Pioneer Electric Corp............. 66,000 1,600,907
Sony Corp......................... 16,500 1,438,225
Sumitomo Electric Industries ..... 56,000 938,138
Westinghouse Electric Corp. ...... 107,500 2,485,938
-------------
25,763,027
-------------
53
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------
MACHINERY (2.2%)
Allied Signal, Inc................ 114,700 $ 9,634,800
Fujitec Co. Ltd................... 96,000 1,139,168
Ishikawajima Harima Heavy
Industries....................... 156,000 612,512
Keystone International, Inc. ..... 318,900 11,061,844
KSB AG*........................... 2,600 644,074
Legris Industries................. 17,300 815,441
Mitsubishi Heavy Industries Ltd. . 100,000 766,949
Rauma Oy.......................... 1,234 28,309
Schindler Holding AG
Participating Certificate........ 915 1,143,358
Schindler Holding AG
Registered....................... 450 577,713
Siebe PLC......................... 68,600 1,161,398
Stork N.V. ....................... 18,000 733,547
TI Group PLC ..................... 123,795 1,078,837
United Technologies Corp.......... 57,600 4,780,800
Valmet Oy*........................ 31,000 536,655
-------------
34,715,405
-------------
TOTAL CAPITAL GOODS (5.1%) ...... 84,215,093
-------------
CONSUMER CYCLICALS
AIRLINES (0.2%)
Northwest Airlines Corp.
(Class A)*....................... 78,700 2,862,713
-------------
APPAREL, TEXTILE (0.8%)
Adidas AG+........................ 8,050 900,138
Mohawk Industries, Inc.*.......... 16,200 368,550
Onward Kashiyama Co. Ltd. ........ 79,000 1,309,659
Polymer Group, Inc.*.............. 15,100 243,488
Reebok International Ltd.......... 181,500 8,485,125
Shaw Industries, Inc.............. 102,000 1,083,750
Stage Stores, Inc.*............... 7,900 206,388
Tommy Hilfiger Corp.*............. 6,500 261,219
-------------
12,858,317
-------------
AUTO RELATED (0.8%)
Budget Group, Inc. (Class A)* .... 16,800 579,600
Circuit City Stores, Inc.-CarMax
Group*........................... 176,500 2,526,156
Continental AG.................... 62,300 1,546,872
Federal-Mogul Corp................ 11,600 406,000
Miller Industries, Inc.*.......... 23,550 376,800
NGK Spark Plug Co................. 79,000 861,618
Republic Industries, Inc.*........ 176,700 4,395,413
Sumitomo Rubber Industries, Inc. . 129,000 867,804
Toyoda Automatic Loom Works ...... 70,000 1,587,994
-------------
13,148,257
-------------
AUTOS & TRUCKS (0.4%)
Bajaj Auto Ltd. (GDR)............. 15,000 516,375
Harley-Davidson, Inc. ............ 32,400 1,553,175
Honda Motor Corp. ................ 39,000 1,173,981
Toyota Motor Corp. ............... 50,000 1,474,566
UMW Holdings BHD.................. 188,000 886,371
Volkswagen AG..................... 1,440 1,091,622
-------------
6,696,090
-------------
FOOD SERVICES, LODGING (1.2%)
American General Hospitality
Corp. ........................... 6,200 153,450
Compass Group PLC................. 144,200 1,617,935
Doubletree Corp.* ................ 6,941 285,449
Host Marriott Corp.*.............. 138,200 $ 2,461,688
Innkeepers USA Trust.............. 17,200 258,000
Interstate Hotels Co.*............ 9,300 273,769
John Q Hammons Hotels, Inc.
(Class A)*....................... 200,000 1,850,000
La Quinta Motor Inns, Inc. ...... 216,750 4,741,406
McDonald's Corp................... 162,900 7,870,106
Suburban Lodges of America,
Inc.*............................ 15,000 315,000
-------------
19,826,803
-------------
<PAGE>
HOUSEHOLD FURNITURE,
APPLIANCES (0.9%)
First Brands Corp................. 55,200 1,266,150
Hunter Douglas N.V................ 13,203 1,123,194
Industrie Natuzzi (ADR)........... 8,900 228,063
Sunbeam Corp...................... 338,900 12,793,475
-------------
15,410,882
-------------
LEISURE RELATED (1.0%)
Cyrk, Inc.*....................... 220,600 2,592,050
Disney (Walt) Co.................. 89,200 7,158,300
Granada Group PLC................. 88,900 1,169,135
Harman International
Industries, Inc.................. 4,300 181,138
ITT Corp.*........................ 77,000 4,701,813
Ladbroke Group PLC................ 279,118 1,091,922
Nintendo Co. ..................... 9,800 820,871
-------------
17,715,229
-------------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co................ 26,000 1,045,808
-------------
RETAIL--GENERAL (1.8%)
BAA PLC .......................... 154,200 1,420,816
Boots Co. PLC..................... 74,700 874,824
Consolidated Stores Corp.*........ 11,187 388,748
Dayton Hudson Corp................ 124,100 6,600,569
Dickson Concepts International
Ltd. ............................ 161,000 586,036
Federated Department Stores,
Inc.*............................ 63,000 2,189,250
Fingerhut Companies, Inc.......... 210,500 3,670,594
Kingfisher PLC.................... 74,900 850,359
Kokuyo Co......................... 55,000 1,487,654
Petco Animal Supplies, Inc.* ..... 13,000 390,000
Rite Aid Corp..................... 40,000 1,995,000
Sears, Roebuck & Co. ............. 169,600 9,116,000
Vendex International N.V. ........ 15,540 850,991
-------------
30,420,841
-------------
TOTAL CONSUMER CYCLICALS (7.2%) 119,984,940
-------------
CONSUMER NONCYCLICALS
BEVERAGES (1.3%)
Bass Breweries.................... 83,500 1,018,888
Coca-Cola Co. .................... 253,500 17,111,250
Guinness PLC...................... 58,000 567,729
Scottish & Newcastle PLC.......... 100,000 1,076,229
Whitbread PLC*.................... 92,500 1,167,974
-------------
20,942,070
-------------
CONTAINERS (0.1%)
Schmalbach Lubeca AG*............. 8,300 1,865,703
Silgan Holdings, Inc.*............ 15,400 596,750
-------------
2,462,453
-------------
54
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------
DRUGS (3.1%)
Astra AB (A Shares)............... 30,000 $ 559,378
Centocor, Inc.*................... 330,000 10,250,625
Daiichi Pharmaceutical Co. ...... 79,000 1,392,374
Geltex Pharmaceuticals, Inc.* .... 13,700 275,713
Jones Medical Industries, Inc. ... 4,800 228,000
McKesson Corp..................... 20,000 1,550,000
MedImmune, Inc.*.................. 13,600 251,600
Merck KGAA........................ 18,700 814,955
Merck & Co., Inc.................. 108,400 11,219,400
Novartis AG....................... 2,083 3,328,807
Orion-Yhtymae Oy (B Shares) ...... 26,700 1,012,963
Pfizer, Inc. ..................... 100,600 12,021,700
Sankyo Co......................... 27,000 906,989
Santen Pharmaceutical Co.......... 12,000 241,864
Taisho Pharmaceutical Co.......... 59,000 1,590,699
Takeda Chemical Industries........ 30,000 842,858
Warner-Lambert Co................. 28,200 3,503,850
Yamanouchi Pharmaceutical......... 58,000 1,558,677
-------------
51,550,452
-------------
FOODS (0.6%)
Campbell Soup Co.................. 138,370 6,918,500
Fine Host Corp.*.................. 6,200 195,300
Huhtamaki Oy Series I............. 11,550 497,642
Nestle AG......................... 1,150 1,516,535
Orkla A/S 'A'..................... 8,300 612,220
Parmalat Finanziaria Spa.......... 503,700 712,351
-------------
10,452,548
-------------
HOSPITAL SUPPLIES & SERVICES (1.7%)
Boston Scientific Corp.*.......... 125,100 7,685,831
Columbia/HCA Healthcare Corp. ... 127,000 4,992,688
Healthsouth Corp.*................ 13,773 343,464
Medtronic, Inc.................... 76,400 6,188,400
National Surgery Centers, Inc.* .. 8,400 297,150
Oxford Health Plans, Inc.*........ 78,500 5,632,375
PT Tempo Scan Pacific*............ 206,000 461,637
Steris Corp.*..................... 70,762 2,644,730
-------------
28,246,275
-------------
RETAIL--FOOD (0.7%)
Delhaize Freres................... 8,800 462,233
Familymart Co..................... 130,000 6,374,662
Promodes.......................... 2,710 1,055,557
Seven-Eleven Japan Ltd............ 24,000 1,813,454
United Natural Foods, Inc.* ...... 9,400 197,400
Woolworths Ltd.................... 569,991 1,872,117
-------------
11,775,423
-------------
SOAPS & TOILETRIES (1.3%)
Colgate Palmolive Co.............. 169,740 11,075,535
Gillette Corp..................... 114,910 10,887,723
-------------
21,963,258
-------------
TOBACCO (1.7%)
Japan Tobacco, Inc................ 187 1,476,616
Loews Corp........................ 20,000 2,002,500
Philip Morris Cos., Inc. ......... 496,100 22,014,438
Seita............................. 31,000 981,163
Tabacalera SA..................... 17,960 963,947
-------------
27,438,664
-------------
TOTAL CONSUMER NONCYCLICALS (10.5%) 174,831,143
-------------
<PAGE>
CREDIT SENSITIVE
BANKS (2.2%)
Allied Irish Bank................. 225,000 $ 1,562,384
AMMB Holdings BHD................. 78,000 485,182
AMMB Holdings BHD Rights-Bonds* .. 78,000 7,262
AMMB Holdings BHD Rights-Equity* . 78,000 464
Banco Bilbao Vizcaya SA........... 18,300 1,486,331
Banco Santander SA................ 29,100 896,436
Bangkok Bank Public Co. .......... 20,000 137,425
Banque Nationale de Paris*........ 13,700 564,626
Chase Manhattan Corp.............. 190,000 18,441,875
Credito Italiano Spa.............. 500,000 914,402
Dao Heng Bank Group Ltd........... 30,000 164,186
Den Danske Bank................... 9,570 931,120
Den Norske Bank ASA............... 201,000 787,978
Istituto Mobilare Italiano........ 84,700 762,047
Kredietbank....................... 1,250 503,726
Long-Term Credit Bank of Japan ... 230,000 993,369
Overseas Union Bank Ltd.--
Rights*.......................... 20,400 11,130
Overseas Union Bank Ltd........... 102,000 634,958
Philippine Commercial
International Bank............... 5,000 48,339
PT Bank Dagang Nasional Indonesia
Tbk.............................. 1,230,000 872,430
Seventy-Seven Bank Ltd............ 123,000 1,191,257
Societe Generale.................. 9,028 1,007,771
Sparbanken Sverige AB
(A Shares)....................... 47,100 1,048,989
State Bank of India (GDR)......... 27,000 715,500
Thai Farmers Bank Public
Co.--Warrants*................... 2,875 1,304
Wing Hang Bank Ltd................ 161,000 972,571
Yamaguchi Bank.................... 70,000 1,050,519
-------------
36,193,581
-------------
FINANCIAL SERVICES (3.4%)
Associated First Capital Corp. .. 43,000 2,386,500
Beneficial Corp. ................. 50,800 3,609,975
Credit Saison Co. ................ 79,000 1,930,024
FIRSTPLUS Financial Group, Inc.* . 8,800 299,200
Household International, Inc. .... 10,000 1,174,375
MBNA Corp......................... 549,350 20,119,944
Merrill Lynch & Co., Inc.......... 85,400 5,091,975
Morgan Stanley, Dean Witter,
Discover & Co.................... 335,000 14,425,938
Peregrine Investment Holdings
Ltd. ............................ 472,000 971,745
PMI Group, Inc.................... 79,000 4,927,625
Salomon, Inc...................... 34,600 1,924,625
Worms Et Compagnie*............... 4,188 248,000
-------------
57,109,926
-------------
INSURANCE (2.7%)
AMEV N.V.......................... 53,100 2,364,131
Assurances Generales de France ... 37,100 1,185,594
Baloise Holdings*................. 540 1,286,683
General Accident.................. 42,200 616,095
ING Groep N.V..................... 56,645 2,611,414
Life Re Corp...................... 140,500 6,550,813
55
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------
MGIC Investment Corp. ............ 102,000 $ 4,889,625
PennCorp Financial Group, Inc. ... 127,000 4,889,500
QBE Insurance Group Ltd. ......... 161,000 972,504
Royal & Sun Alliance Insurance
Group PLC........................ 99,600 734,512
TIG Holdings, Inc. ............... 31,300 978,125
Travelers Group, Inc.............. 261,466 16,488,700
Trygg-Hansa AB (B Shares)......... 3,600 72,020
United Assurance Group PLC........ 71,600 509,548
Zurich Versicherungs.............. 2,130 847,333
-------------
44,996,597
-------------
REAL ESTATE (0.1%)
JP Realty, Inc.................... 9,400 254,975
Macerich Co. ..................... 9,300 258,075
Societe des Immeubles de France
SA*.............................. 3,435 198,734
Unibail SA........................ 7,880 737,489
-------------
1,449,273
-------------
UTILITY--ELECTRIC (0.3%)
Energy Group PLC*................. 58,840 627,866
Hong Kong Electric Holdings Ltd. 179,000 720,871
Malakoff BHD...................... 90,000 392,235
Manila Electric Co................ 16,620 81,915
Powergen.......................... 108,000 1,285,481
Veba AG........................... 39,800 2,248,007
-------------
5,356,375
-------------
UTILITY--GAS (0.2%)
Anglian Water PLC................. 128,600 1,394,734
Scottish Power PLC................ 220,000 1,431,975
-------------
2,826,709
-------------
UTILITY--TELEPHONE (1.1%)
British Telecommunications........ 186,600 1,385,423
Cable & Wireless.................. 109,200 1,004,363
Philippine Long Distance
Telephone Co..................... 10,000 324,158
Telecom Italia Spa................ 560,800 1,678,544
Telefonica de Espana SA........... 57,000 1,647,611
Telekom Malaysia BHD.............. 150,000 701,268
Telephone & Data Systems, Inc. ... 34,700 1,316,431
Teleport Communications Group,
Inc. (Class A)*.................. 277,200 9,459,450
-------------
17,517,248
-------------
TOTAL CREDIT SENSITIVE (10.0%) .. 165,449,709
-------------
ENERGY
COAL & GAS PIPELINES (0.0%)
BG PLC............................ 186,000 684,292
-------------
OIL--DOMESTIC (1.0%)
Apache Corp....................... 122,500 3,981,250
Costilla Energy, Inc.*............ 21,500 276,813
KCS Energy, Inc. ................. 7,000 285,250
Louis Dreyfus Natural Gas
Corp.*........................... 245,400 3,987,750
Murphy Oil Corp................... 30,000 1,462,500
Tom Brown, Inc.*.................. 121,000 2,571,250
USX-Marathon Group................ 146,200 4,221,525
-------------
16,786,338
-------------
OIL--INTERNATIONAL (1.3%)
British Petroleum Co. PLC......... 98,700 1,226,543
Canadian Occidental............... 15,000 337,500
Elf Aquitaine..................... 18,800 $ 2,028,213
ENI Spa........................... 112,800 638,435
Gulf Canada Resources Ltd.* ...... 456,000 3,790,500
Repsol SA......................... 13,950 589,702
Shell Transport & Trading Co.
PLC.............................. 178,950 1,219,893
Texaco, Inc. ..................... 80,000 8,700,000
Total Campagnie Francaise ........ 26,234 2,651,658
-------------
21,182,444
-------------
OIL--SUPPLIES & CONSTRUCTION (2.5%)
Baker Hughes, Inc................. 86,000 3,327,125
BJ Services Co.*.................. 105,900 5,678,888
Compagnie Generale de Geophysique
(ADR)*........................... 30,000 577,500
Halliburton Co.................... 118,200 9,367,350
Nabors Industries, Inc.*.......... 181,800 4,545,000
Noble Drilling Corp.*............. 130,000 2,933,125
Parker Drilling Co.*.............. 134,900 1,500,763
Rowan Cos., Inc.*................. 15,100 425,631
Santa Fe International Corp* ..... 25,000 850,000
Transocean Offshore, Inc.......... 179,500 13,036,188
-------------
42,241,570
-------------
RAILROADS (0.5%)
Genesee & Wyoming, Inc.
(Class A)*....................... 17,100 448,875
Union Pacific Corp................ 102,400 7,219,200
-------------
7,668,075
-------------
TOTAL ENERGY (5.3%).............. 88,562,719
-------------
TECHNOLOGY
ELECTRONICS (3.4%)
Altera Corp.*..................... 118,300 5,974,150
Applied Materials, Inc.*.......... 94,900 6,720,106
BMC Industries, Inc............... 3,700 126,725
Cisco Systems, Inc.*.............. 212,900 14,290,913
Hirose Electric Co. Ltd........... 25,000 1,714,510
Hoya Corp......................... 45,000 2,002,443
Insight Enterprises, Inc.*........ 6,300 189,394
Intel Corp........................ 57,469 8,149,823
LSI Logic Corp.*.................. 57,073 1,826,336
Micron Electronics, Inc.*......... 18,900 336,656
Micron Technology, Inc.*.......... 49,000 1,956,938
National Semiconductor Corp.* .... 85,000 2,603,125
Rohm Co. Ltd...................... 33,000 3,397,609
Seagate Technology, Inc.*......... 32,401 1,140,110
SGS-Thomson Microelectronics
N.V.*............................ 6,750 532,952
SMH AG............................ 4,850 656,684
Spectrum Holobyte, Inc.*.......... 22,200 108,225
TDK Corp.......................... 41,000 3,008,551
Teradyne, Inc.*................... 27,100 1,063,675
Varitronix International Ltd. .... 469,000 796,064
3D Labs, Inc. Ltd.*............... 600 17,400
-------------
56,612,389
-------------
OFFICE EQUIPMENT (1.3%)
Barco N.V......................... 4,314 874,025
Canon, Inc........................ 65,000 1,769,479
Ceridian Corp.*................... 86,300 3,646,175
Compaq Computer Corp.*............ 85,600 8,495,800
Dell Computer Corp.*.............. 40,500 4,756,219
Read-Rite Corp.*.................. 7,200 150,300
Sterling Software, Inc.*.......... 6,700 209,375
Storage Technology Corp.*......... 47,700 2,122,650
-------------
22,024,023
-------------
56
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------
OFFICE EQUIPMENT SERVICES (2.0%)
Cognos, Inc.*..................... 9,600 $ 298,800
Comverse Technology, Inc.*........ 21,500 1,118,000
First Data Corp................... 162,500 7,139,844
Microsoft Corp.*.................. 69,500 8,783,063
Netscape Communications Corp.* ... 76,200 2,443,163
Oracle Corp.*..................... 247,750 12,480,406
Saville Systems Ireland (ADR)* ... 6,200 322,400
-------------
32,585,676
-------------
TELECOMMUNICATIONS (2.0%)
ADC Telecommunications, Inc.* .... 197,700 6,598,235
Asia Satellite Telecommunications
Holdings Ltd. ................... 120,000 367,870
Comnet Cellular, Inc.*............ 8,800 305,800
DDI Corp. ........................ 248 1,830,625
ICG Communications, Inc.*......... 13,600 261,800
Millicom International Cellular
SA*.............................. 4,000 191,000
Nextel Communications, Inc.
(Class A)*....................... 49,500 937,405
Nokia Corp. (ADR)................. 35,000 2,581,250
PT Indosat........................ 419,000 1,253,382
PT Telekomunikasi Indonesia ...... 309,000 505,047
SK Telecom Co. Ltd................ 83,160 836,798
Tellabs, Inc.*.................... 114,000 6,369,750
Videsh Sanchar Nigam Ltd. (GDR)*
+................................ 14,400 299,952
Vodafone Group.................... 194,300 946,095
WorldCom, Inc.*................... 328,350 10,507,200
-------------
33,792,209
-------------
TOTAL TECHNOLOGY (8.7%).......... 145,014,297
-------------
DIVERSIFIED
MISCELLANEOUS (0.6%)
Berjaya Sports Toto BHD........... 140,000 660,063
BTR PLC........................... 209,000 714,980
Cie Generale des Eaux............. 8,259 1,058,252
Citic Pacific Ltd................. 60,000 374,840
Compagnie Generale de
Eaux--Warrants*.................. 8,259 4,947
First Pacific Co.................. 397,685 508,188
Montedison Spa*................... 1,113,000 734,336
Smith (Howard) Ltd................ 35,000 332,977
Swire Pacific Ltd. (Class A) ..... 57,000 513,179
Tomkins PLC....................... 418,500 1,811,360
U.S. Industries, Inc.*............ 107,600 3,833,242
-------------
TOTAL DIVERSIFIED (0.6%)......... 10,546,364
-------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (51.0%)
(Cost $665,898,748).............. 848,957,561
-------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA....................... 15,180 854,794
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.0%)
Republic Industries, Inc.
6.5% Exch. Conv.................. 27,500 673,750
-------------
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
Chancellor Broadcasting
7.0% Conv.+...................... 9,900 693,000
-------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A.............. 13,100 $ 733,600
-------------
TOTAL BUSINESS SERVICES (0.1%) .. 2,100,350
-------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Continental Airlines Finance
Trust 8.5% Conv. ................ 15,300 1,208,700
-------------
RETAIL--GENERAL (0.0%)
Hornbach Holding AG............... 8,010 668,304
-------------
TOTAL CONSUMER CYCLICALS (0.1%) 1,877,004
-------------
<PAGE>
CONSUMER NONCYCLICALS (0.1%)
CONTAINERS
Crown Cork & Seal Co., Inc.
4.5% Conv. ...................... 18,400 929,200
-------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.0%)
Money Store
6.5% Conv. ...................... 15,500 422,375
-------------
INSURANCE (0.1%)
PennCorp Financial Group, Inc.
7.0% Conv. +..................... 15,250 956,938
-------------
TOTAL CREDIT SENSITIVE (0.1%) ... 1,379,313
-------------
ENERGY (0.0%)
OIL--DOMESTIC
Devon Financing Trust
$3.25 Conv....................... 9,600 672,000
-------------
TECHNOLOGY
TELECOMMUNICATIONS (0.3%)
Nokia Oy Cum...................... 14,100 1,054,377
Qualcomm Financial Trust
5.75% Conv.+ .................... 36,800 1,743,400
WorldCom, Inc.
8.0% Conv. ...................... 28,400 3,184,350
-------------
TOTAL TECHNOLOGY (0.3%).......... 5,982,127
-------------
TOTAL PREFERRED STOCKS (0.8%)
(Cost $10,760,271)............... 13,794,788
-------------
PRINCIPAL
AMOUNT
-------------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (1.4%)
CHEMICALS
Soc Quimica Y Minera
7.7%, 09/15/06+.................. $23,375,000 23,833,150
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
United Waste Systems Inc
4.5% Conv., 06/01/01+............ 1,135,000 1,562,044
-------------
PROFESSIONAL SERVICES (0.3%)
Career Horizons, Inc.
7.0% Conv., 11/01/02............. 710,000 1,556,675
Danka Business Systems PLC
6.75% Conv., 04/01/02............ 900,000 1,333,125
First Financial Management Corp.
5.0% Conv., 12/15/99............. 1,230,000 2,503,050
Personnel Group of America
5.75% Conv., 07/01/04+........... 240,000 257,700
-------------
5,650,550
-------------
TOTAL BUSINESS SERVICES (0.4%) .. 7,212,594
-------------
</TABLE>
57
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS (0.1%)
MACHINERY
DII Group, Inc.
6.0% Conv., 10/15/02+.......... $ 1,525,000 $ 2,058,750
---------------
CONSUMER CYCLICALS
LEISURE RELATED (0.1%)
CUC International, Inc.
3.0% Conv., 02/15/02+.......... 805,000 854,306
---------------
RETAIL--GENERAL (0.2%)
Central Garden & Pet Co.:
6.0% Conv. Sub. Note,
11/15/03+...................... 745,000 823,225
6.0% Conv., 11/15/03........... 285,000 314,925
Home Depot, Inc.
3.25% Conv., 10/01/01.......... 740,000 841,750
U.S. Office Products Co.
5.5% Conv., 02/01/01........... 1,540,000 1,892,275
---------------
3,872,175
---------------
TOTAL CONSUMER CYCLICALS (0.3%) 4,726,481
---------------
CONSUMER NONCYCLICALS
DRUGS (0.1%)
MedImmune, Inc.:
7.0% Conv. Sub., 07/01/03+ .... 500,000 567,500
7.0% Conv. 07/01/03 ........... 120,000 136,200
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+......... 725,000 787,531
4.25 Conv., 05/31/00........... 80,000 86,900
---------------
1,578,131
---------------
HOSPITAL SUPPLIES &
SERVICES (0.2%)
FPA Medical Management, Inc.:
6.5% Conv., 12/15/01+.......... 540,000 618,300
6.5% Conv., 12/15/01 .......... 250,000 286,250
Phycor, Inc.
4.5% Conv., 02/01/03........... 875,000 955,938
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+.......... 885,000 1,106,250
---------------
2,966,738
---------------
TOTAL CONSUMER NONCYCLICALS (0.3%) 4,544,869
---------------
CREDIT SENSITIVE
BANKS (2.1%)
Dao Heng Bank Group Ltd.
7.75%, 01/24/07+............... 13,500,000 13,536,315
Deutsche Bank
6.7%, 12/13/06................. 21,450,000 20,913,750
Sumitomo Bank International
0.75% Conv., 05/31/01. . . . . .Yen101,000,000 1,127,999
---------------
35,578,064
---------------
FINANCIAL SERVICES (1.7%)
Bear Stearns Co., Inc.:
7.25%, 10/15/06................ $ 12,000,000 11,981,412
7.0%, 03/01/07................. 6,000,000 5,884,728
Commercial Credit Co.
6.125%, 12/01/05............... 10,000,000 9,379,700
RAC Financial Group, Inc.:
7.25% Conv. Sub., 08/15/03+ ... 635,000 1,377,950
7.25% Conv., 08/15/03.......... 65,000 141,050
---------------
28,764,840
---------------
FOREIGN GOVERNMENT (1.4%)
Province of Quebec
7.125%, 02/09/24............... $ 24,000,000 $ 22,641,600
---------------
INSURANCE (1.5%)
John Hancock Mutual Life
Insurance Co.
7.375%, 02/15/24+.............. 23,750,000 22,640,400
Penn Treaty American Corp.:
6.25% Conv., 12/01/03+......... 905,000 1,131,250
6.25% Conv., 12/01/03.......... 70,000 87,500
---------------
23,859,150
---------------
<PAGE>
MORTGAGE RELATED (8.4%)
Federal Home Loan
Mortgage Corp:
7.0%, 09/01/11................. 27,303,661 27,252,467
7.0%, 01/01/12................. 5,835,943 5,825,001
Federal National Mortgage
Association:
6.5%, 05/01/11................. 43,097,407 42,208,524
6.5%, 08/01/11................. 17,645,741 17,281,798
7.0%, 05/01/26................. 27,988,658 27,428,970
Government National Mortgage
Association
7.5%, 5/15/26.................. 20,484,929 20,536,204
---------------
140,532,964
---------------
UTILITY--ELECTRIC (0.8%)
Empresa Nacional de
Electricidad S.A.
7.875%, 02/01/27............... 14,000,000 14,119,224
---------------
UTILITY--GAS (1.1%)
RAS Laffan Liquid Natural Gas
8.294%, 09/15/14+.............. 16,730,000 17,554,789
---------------
U.S. GOVERNMENT (21.8%)
U.S. Treasury:
6.125% Note, 08/31/98.......... 166,000,000 166,415,000
6.75% Note, 04/30/00........... 21,600,000 21,883,500
6.25% Note, 04/30/01........... 8,000,000 7,980,000
6.5% Note, 05/31/02............ 76,250,000 76,535,938
5.75% Note, 08/15/03........... 51,700,000 49,922,813
6.875% Note, 05/15/06.......... 4,000,000 4,082,500
6.625% Bond, 02/15/27.......... 37,425,000 36,606,328
---------------
363,426,079
---------------
TOTAL CREDIT SENSITIVE
(38.8%)........................ 646,476,710
---------------
ENERGY
COAL & GAS PIPELINES (0.1%)
Nabors Industries, Inc.
5.0% Conv., 05/15/06........... 900,000 1,356,750
Swift Energy Co.
6.25% Conv., 11/15/06.......... 830,000 833,113
---------------
2,189,863
---------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07....................... 455,000 529,506
Seacor Holdings, Inc.:
5.375% Conv., 11/15/06+........ 755,000 792,750
5.375% Conv., 11/15/06 ........ 90,000 94,500
---------------
1,416,756
---------------
TOTAL ENERGY (0.2%)............ 3,606,619
---------------
58
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
TECHNOLOGY
ELECTRONICS (1.3%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+...................... $ 1,335,000 $ 2,726,738
Applied Magnetics Corp.
7.0% Conv. Sub., 03/15/06 ..... 1,750,000 2,434,688
Baan Co.
4.0% Conv. Sub. Notes,
12/15/01+...................... 975,000 1,550,250
HMT Technology Corp.
5.75% Conv., 01/15/04+......... 2,245,000 1,913,863
Motorola, Inc.
Zero Coupon Conv., 09/27/13 ... 1,385,000 1,246,500
Photronics, Inc.
6.0% Conv., 06/01/04........... 1,000,000 1,115,000
Quantum Corp.
5.0% Conv., 03/01/03+.......... 435,000 829,762
Sanmina Corporation
5.5% Conv., 08/15/02+.......... 1,310,000 3,026,100
SCI Systems, Inc.
5.0% Conv., 05/01/06........... 1,495,000 2,178,960
Solectron Corp.
6.0% Conv., 03/01/06+.......... 960,000 1,200,000
Trikon Technologies, Inc.
7.125% Conv., 10/15/01+........ 660,000 468,600
Xilinx, Inc.
5.25%, Conv., 11/01/02+........ 1,485,000 1,709,605
3Com Corp.
10.25% Conv., 11/01/01+........ 1,085,000 1,502,725
---------------
21,902,791
---------------
TELECOMMUNICATIONS (0.2%)
Comverse Technology, Inc.
5.75% Conv. Sub., 10/01/06+ ... 1,765,000 2,312,150
---------------
TOTAL TECHNOLOGY (1.5%)........ 24,214,941
---------------
TOTAL LONG-TERM DEBT SECURITIES (43.0%)
(Amortized Cost $703,857,719) . 716,674,114
---------------
SHORT-TERM DEBT SECURITIES:
CERTIFICATES OF DEPOSIT
Republic Bank of Canada
5.61%, due 08/18/97............ 20,000,000 20,000,528
Sanwa Bank Ltd.
5.66%, due 07/07/97............ 15,000,000 14,999,974
---------------
TOTAL CERTIFICATES OF DEPOSIT (2.1%) 35,000,502
---------------
COMMERCIAL PAPER
Associates Corp. of North
America
6.3%, due 07/01/97............. $ 4,800,000 $ 4,800,000
Bankers Trust Securities
6.3%, due 07/01/97............. 5,500,000 5,500,000
Dakota Funding, Inc.
6.3%, due 07/01/97............. 3,500,000 3,500,000
Dresdner U.S. Finance, Inc.
6.25%, due 07/01/97............ 14,800,000 14,800,000
---------------
TOTAL COMMERCIAL PAPER (1.7%) 28,600,000
---------------
TIME DEPOSITS
Canadian Imperial Bank of
Commerce
6.375%, due 07/01/97........... 4,000,000 4,000,000
Mitsubishi Bank Ltd.-N.Y.
6.375%, due 07/01/97........... 1,400,000 1,400,000
Sumitomo Bank Ltd.
6.25%, due 07/01/97............ 500,000 500,000
---------------
TOTAL TIME DEPOSITS (0.4%) .... 5,900,000
---------------
TOTAL SHORT-TERM DEBT SECURITIES (4.2%)
(Amortized Cost $69,500,502) .. 69,500,502
---------------
TOTAL INVESTMENTS (99.0%)
(Cost/Amortized Cost $1,450,017,240) 1,648,926,965
OTHER ASSETS
LESS LIABILITIES (1.0%)........ 17,526,799
---------------
NET ASSETS (100.0%)............. $1,666,453,764
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS BY
GLOBAL REGION
As a Percentage of Total
Investments
<S> <C>
Australia................ 0.2%
Canada................... 0.3
France .................. 1.0
Germany ................. 0.7
Japan.................... 4.1
Latin America............ 0.9
Netherlands ............. 0.7
Scandinavia.............. 0.7
Southeast Asia........... 1.1
Switzerland ............. 0.7
United Kingdom........... 2.1
United States**.......... 86.4
Other European
Countries............... 1.1
-------
100.0%
=======
</TABLE>
- ------------
* Non-income producing.
** Includes Short-Term Debt Securities of 4.2%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1997, these securities amounted to $111,836,896 or
6.7% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
59
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.5%)
AGA AB (A Shares).................. 3,400 $ 46,226
Akzo Nobel N.V..................... 6,875 942,086
Asahi Chemical Industry Co. ...... 27,000 161,373
Bayer AG........................... 25,400 978,772
BOC Group Co. PLC.................. 6,825 118,728
Dainippon Ink & Chemical, Inc. .... 21,000 90,516
GP Batteries International Ltd. ... 180,000 536,280
GP Batteries International
Ltd.--Rights*..................... 5,750 2,875
Imperial Chemical Industries ...... 18,212 253,303
Indo Gulf Fertilisers (GDR)........ 50,000 45,000
Ishihara Sangyo Ltd.*.............. 130,000 384,521
Johnson Matthey PLC................ 25,000 240,965
Kuraray Co. Ltd.................... 6,000 59,681
L'Air Liquide SA................... 2,035 323,082
Linde AG........................... 150 116,549
Mitsubishi Chemical Corp........... 7,000 22,843
Mitsui Toatsu Chemicals, Inc. ..... 15,000 41,227
Monsanto Co........................ 65,000 2,799,063
Royal Group Technologies Ltd.* .... 10,000 267,932
Sanyo Chemicals.................... 16,000 142,396
Sekisui Chemical Co. Ltd. ......... 4,000 40,485
Shin-Etsu Chemical Ltd. ........... 4,000 106,099
Solvay Et Cie Societe Anonyme ..... 120 70,702
Sumitomo Chemical Co. Ltd.......... 28,000 126,795
Toray Industries, Inc.............. 29,000 206,727
UBE Industries Ltd. ............... 14,000 40,677
--------------
8,164,903
--------------
CHEMICALS--SPECIALTY (0.4%)
Crompton & Knowles Corp............ 35,100 780,975
Cytec Industries, Inc.*............ 68,800 2,571,400
Kyowa Hakko Kogyo Co. ............. 8,000 59,890
NGK Insulators..................... 6,000 65,963
SGL Carbon AG+ .................... 15,000 2,048,856
UCAR International, Inc.*.......... 5,000 228,750
--------------
5,755,834
--------------
METALS & MINING (0.2%)
Alusuisse Lonza Holding AG......... 90 93,174
Century Aluminum Co................ 26,600 389,025
CRA Ltd............................ 5,800 98,884
Degussa AG......................... 2,500 132,175
Gibraltar Steel Corp.*............. 11,600 266,800
Great Central Mines Ltd............ 120,000 228,508
Gwalia Consolidated Ltd............ 95,800 117,181
Japan Energy Corp.................. 19,000 49,734
Kaiser Aluminum Corp.*............. 26,300 322,175
Mitsubishi Materials Corp.......... 24,000 95,908
Plutonic Resources Ltd............. 30,000 93,777
Randgold Resources Ltd.*+.......... 7,600 125,780
RTZ Corp........................... 27,615 481,083
Steel Dynamics, Inc.*.............. 19,700 492,500
Sumitomo Metal Mining Co........... 10,000 70,674
Toho Titanium*..................... 15,000 229,038
Western Mining Corp. Ltd........... 40,700 256,600
--------------
3,543,016
--------------
PAPER (0.2%)
Amcor Ltd.......................... 8,900 $ 59,136
Asia Pacific Resources
International Holdings Ltd.
(Class A)*........................ 5,000 23,750
Enso Oy (Series R)................. 30,000 277,600
Fletcher Forestry Shares........... 4,256 6,187
Grupo Industrial Durango (ADR)* ... 12,000 183,000
Jefferson Smurfit Corp.*........... 79,300 1,268,800
Mayr-Melnhof Karton Aktien AG+ .... 1,500 77,014
Nippon Paper Industries Co......... 30,000 173,545
Oji Paper Co. Ltd.................. 44,000 272,193
Svenska Cellulosa (Series B) ...... 3,200 68,161
UPM-Kymmene Oy..................... 3,292 76,155
--------------
2,485,541
--------------
STEEL (0.2%)
Broken Hill Proprietary Co. Ltd. .. 50,000 735,532
Hitachi Metals Ltd................. 30,000 218,567
Kawasaki Steel..................... 54,000 175,744
Nippon Steel Corp.................. 217,000 692,976
NKK Corp........................... 85,000 182,445
Sumitomo Metal Industries.......... 246,000 699,730
Thyssen AG......................... 450 108,249
Usinor Sacilor..................... 3,500 63,131
--------------
2,876,374
--------------
TOTAL BASIC MATERIALS (1.5%) ..... 22,825,668
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.5%)
B.U.S. Berzelius Umwelt-Service
AG................................ 22,000 334,308
Daiseki Co. Ltd.................... 8,000 167,525
Matsuda Sangyo Co. Ltd............. 12,000 219,876
Philip Services Corp.*............. 16,800 266,700
Powerscreen International.......... 75,000 817,160
Rentokil Initial PLC............... 200,000 702,503
Superior Services, Inc.*........... 13,400 318,250
Tomra Systems ASA.................. 102,660 2,103,432
United States Filter Corp.*........ 15,700 427,825
United Waste Systems, Inc.*........ 6,500 266,500
USA Waste Services, Inc.*.......... 179,500 6,933,188
Waste Management, Inc. ............ 299,000 9,605,375
--------------
22,162,642
--------------
PRINTING, PUBLISHING &
BROADCASTING (2.0%)
British Sky Broadcasting Group
PLC............................... 50,476 369,721
Cablevision Systems Corp.
(Class A)*........................ 72,400 3,873,400
Carlton Communications PLC......... 180,000 1,520,703
Dainippon Printing Co. Ltd......... 19,000 429,369
Elsevier N.V....................... 69,345 1,158,656
Evergreen Media Corp.
(Class A)*........................ 23,300 1,039,763
Havas.............................. 200 14,413
Liberty Media Group (Class A)* .... 231,850 5,506,438
Mediaset Spa....................... 140,000 593,979
60
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Mirror Group Newspapers PLC ...... 70,000 $ 219,075
New York Times Co.................. 109,200 5,405,400
News Corp. Ltd..................... 59,900 287,195
Nippon Television Network Corp. .. 800 321,089
Pegasus Communications Corp.
(Class A)*........................ 1,128 12,267
Reed International................. 100,000 968,855
Reuters Holdings................... 53,984 568,859
Sinclair Broadcast Group, Inc.* ... 13,600 419,900
Singapore Press Holdings........... 3,000 60,432
Star Publications BHD*............. 20,000 85,578
Takara Printing Co................. 11,000 79,661
Television Francaise............... 5,000 446,679
Time Warner, Inc................... 96,000 4,632,000
Tokyo Broadcasting System.......... 31,000 635,634
Toppan Printing Co. ............... 7,000 109,938
Ver Ned Uitgeversbedr Ver Bezit
N.V............................... 25,000 552,707
Westwood One, Inc.*................ 23,800 767,550
--------------
30,079,261
--------------
PROFESSIONAL SERVICES (0.5%)
Adecco SA.......................... 275 105,443
Alvern Norway ASA*................. 76,550 418,255
Apcoa Parking AG................... 3,000 291,244
Asatsu, Inc........................ 21,000 776,896
Content Beheer N.V. +.............. 53,000 2,305,681
CORESTAFF, Inc.*................... 13,200 356,400
Equity Corporation
International*.................... 15,600 377,325
Ha-Lo Industries, Inc.*............ 33,337 787,587
Meitec Corp........................ 48,000 1,428,148
NIC Corp.*......................... 2,000 25,303
Secom Co. ......................... 2,000 146,759
SGS Holdings....................... 25 53,406
WPP Group PLC...................... 100,000 410,349
--------------
7,482,796
--------------
TRUCKING, SHIPPING (0.5%)
Brambles Industries Ltd. .......... 90,000 1,779,796
Irish Continental Group............ 30,000 341,132
Kawasaki Kisen*.................... 40,000 80,621
Knightsbridge Tankers Ltd.......... 141,000 3,560,250
Mitsui O.S.K. Lines Ltd.*.......... 19,000 39,124
Nippon Express Co. Ltd............. 25,000 199,590
Nippon Yusen K.K. ................. 13,000 50,476
OMI Corp.*......................... 131,000 1,252,688
Peninsular & Oriental Steam
Navigation Co. ................... 10,466 104,537
Western Bulk Shipping*............. 30,860 151,752
Yamato Transport .................. 87,000 1,085,507
--------------
8,645,473
--------------
TOTAL BUSINESS SERVICES (4.5%) 68,370,172
--------------
CAPITAL GOODS
AEROSPACE (0.4%)
Boeing Co.......................... 64,500 3,422,531
British Aerospace.................. 11,284 251,055
Coltec Industries, Inc.*........... 128,000 2,496,000
DONCASTERS PLC (ADR)*.............. 21,400 494,875
Rolls-Royce........................ 22,528 $ 86,068
--------------
6,750,529
--------------
BUILDING & CONSTRUCTION (0.4%)
ABB AG ............................ 410 620,404
CSR Ltd............................ 16,900 65,461
Daito Trust Construction Co. ...... 7,200 84,809
Daiwa House Industry Co............ 9,000 109,938
Grupo Acciona SA................... 1,400 157,691
Hitachi Plant Engineering &
Construction Co................... 32,000 148,539
Hochtief AG........................ 1,500 67,091
Japan Industrial Land Development . 21,000 207,050
Kajima Corp. ...................... 28,000 163,930
Kaneshita Construction Co. ........ 30,000 234,273
Kumagai Gumi Co.................... 6,000 9,999
MacMahon Holdings Ltd.............. 600,000 453,030
Mancon BHD*........................ 47,999 81,393
Metacorp Berhard................... 10,000 20,800
Mitsui Home Co. Ltd................ 35,000 345,083
Nanno Construction Co. Ltd......... 26,000 89,608
Nawarat Patanakarn Public Co. .... 80,000 28,412
Nippon Denwa Shisetsu ............. 39,000 334,840
Nishimatsu Construction Co. ...... 4,000 27,921
Obayashi Corp...................... 12,000 80,307
Ohmoto Gumi Co. Ltd................ 15,000 123,026
Oriental Construction Co. ......... 15,800 143,373
Pacific Rim Infra Management
Enterprises Ltd.*................. 893,200 66,869
Penta Ocean Construction........... 10,000 32,283
PS Corp............................ 31,200 337,562
Sanyo Engineering & Construction,
Inc............................... 18,000 156,112
Sekisui House Ltd.................. 13,000 131,577
Shimizu Corp....................... 15,000 89,914
Sho Bond Construction.............. 48,600 1,267,900
Skanska AB (Series B).............. 1,800 79,711
Suido Kiko Kaisha.................. 8,000 47,465
Taisei Corp. ...................... 20,000 92,662
Toda Construction.................. 32,000 223,925
United Engineers Malaysia BHD ..... 11,000 79,319
Wesco, Inc......................... 9,000 91,877
YTL Corp. BHD...................... 11,000 33,994
--------------
6,328,148
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.6%)
Blue Circle Industries............. 13,338 95,032
BPB PLC............................ 90,000 486,176
Buckeye Cellulose Corp.*........... 12,300 415,125
Chichibu Onoda Cement Co........... 11,000 43,094
Cie de St. Gobain*................. 3,150 459,365
Dahl International AB+............. 45,000 885,682
Fujikura Ltd....................... 100,000 933,601
Furukawa Electric Co............... 13,000 82,689
Heidelberg Zement AG............... 1,000 96,909
Holderbank Financiere Glaris AG ... 80 75,536
Hughes Supply, Inc................. 11,600 464,000
Lafarge Corp....................... 10,350 643,716
61
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Martin Marietta Materials, Inc. ... 74,200 $ 2,402,225
Nichiha Corp....................... 64,500 1,013,001
Portland Valderrivas SA............ 5,000 408,476
Redland PLC........................ 9,480 53,736
Rexam PLC.......................... 13,121 55,371
RMC Group PLC...................... 4,518 73,368
Sumitomo Forestry Co. ............. 7,000 76,957
Wolseley PLC....................... 10,088 78,678
--------------
8,842,737
--------------
ELECTRICAL EQUIPMENT (1.5%)
Alcatel Alsthom.................... 6,000 751,442
Daikin Industries Ltd.............. 5,000 45,371
General Electric Co................ 205,900 13,460,713
General Electric Co. PLC........... 61,328 366,513
Kinden Corp........................ 5,000 70,674
Mabuchi Motor Co................... 14,100 818,122
Schneider SA....................... 2,250 119,761
Siemens AG......................... 14,750 883,444
Sony Corp.......................... 12,000 1,045,982
Sumitomo Electric Industries ...... 31,000 519,326
Westinghouse Electric Corp......... 179,750 4,156,719
Yaskawa Electric Corp.............. 34,000 141,209
--------------
22,379,276
--------------
MACHINERY (2.3%)
Allied Signal, Inc................. 116,500 9,786,000
Amada Co. Ltd. .................... 5,000 44,062
Asahi Diamond Industry Co. Ltd. .. 33,000 305,209
Construcciones Auxiliar Ferro ..... 3,000 135,367
Ebara Corp......................... 5,000 75,037
Enshu*............................. 52,000 163,790
Fanuc Co........................... 5,900 226,507
IHC Caland N.V. ................... 10,000 546,595
Ishikawajima Harima Heavy
Industries........................ 60,000 235,582
Kalmar Industries AB+.............. 17,100 293,382
Kawasaki Heavy Industries Ltd. .... 112,000 520,862
Keyence Corp. ..................... 3,100 459,820
Keystone International, Inc. ...... 316,900 10,992,469
Komatsu Ltd........................ 29,000 235,320
Kubota Corp........................ 33,000 161,530
Makino Milling Machine Co. ........ 18,000 153,756
Mitsubishi Heavy Industries Ltd. .. 170,000 1,303,813
Namura Shipbuilding Co............. 29,000 144,228
Nireco............................. 12,000 107,844
Nitta Corp......................... 42,000 516,709
Nitto Kohki Co. Ltd................ 28,920 999,243
Rofin-Sinar Technologies, Inc.* ... 20,000 382,500
SMC Corp........................... 10,000 844,603
Sodick Co.*........................ 126,000 1,023,523
Thai Engine Manufacturing Public
Co................................ 100,000 648,523
United Technologies Corp........... 57,100 4,739,300
--------------
35,045,574
--------------
TOTAL CAPITAL GOODS (5.2%)........ 79,346,264
--------------
CONSUMER CYCLICALS
AIRLINES (0.3%)
British Airways.................... 45,000 512,769
Cathay Pacific Airways............. 41,000 84,939
Japan Air Lines Co.*............... 24,000 $ 109,100
KLM................................ 14,000 431,468
Lufthansa AG....................... 5,500 105,812
Northwest Airlines Corp.
(Class A)*........................ 69,800 2,538,975
Qantas Airways Ltd................. 40,000 93,626
Singapore Airlines Ltd. ........... 70,000 626,705
--------------
4,503,394
--------------
<PAGE>
APPAREL, TEXTILE (0.9%)
Adidas AG+......................... 3,430 383,537
Carli Gry International A/S........ 20,000 1,138,631
First Sign International Holdings
Ltd. ............................. 100,000 19,362
King Co. .......................... 62,000 232,615
Mohawk Industries, Inc.*........... 22,500 511,875
Polymer Group, Inc.*............... 21,000 338,625
PT Great River International* ..... 1,709,000 1,071,639
Reebok International Ltd........... 160,900 7,522,075
Renown, Inc.*...................... 84,000 208,882
Shaw Industries, Inc............... 91,100 967,938
Stage Stores, Inc.*................ 10,900 284,763
Teijin Ltd. ....................... 18,000 84,809
Tommy Hilfiger Corp.*.............. 9,000 361,688
--------------
13,126,439
--------------
AUTO RELATED (0.8%)
Asahi Glass Co. Ltd................ 46,000 457,552
Autoliv, Inc.*..................... 16,000 626,000
Bridgestone Corp................... 22,000 510,601
Bridgestone Metalpha .............. 11,000 96,937
Budget Group, Inc. (Class A)* ..... 23,100 796,950
Circuit City Stores, Inc.-CarMax
Group*............................ 101,000 1,445,563
Exedy Corp......................... 2,300 29,299
FCC Co. Ltd........................ 5,000 126,516
Federal-Mogul Corp................. 16,000 560,000
LucasVarity PLC.................... 17,320 59,972
Michelin (CGDE), (Class B)......... 8,000 480,406
Miller Industries, Inc.*........... 32,550 520,800
Minebea Co......................... 97,000 1,032,545
NGK Spark Plug Co.................. 50,000 545,328
Nippondenso Co. Ltd................ 30,000 717,215
Republic Industries, Inc.*......... 184,050 4,578,244
Toyoda Automatic Loom Works........ 5,000 113,428
Toyoda Gosei....................... 32,000 223,366
--------------
12,920,722
--------------
AUTOS & TRUCKS (0.4%)
Daimler-Benz AG.................... 23,950 1,948,796
Fiat Spa........................... 67,500 242,919
Harley-Davidson, Inc............... 30,400 1,457,300
Honda Motor Corp................... 40,000 1,204,083
Isuzu Motors Ltd................... 31,000 106,841
Perusahaan Otomobl Nasional BHD ... 9,000 42,076
Peugeot SA......................... 700 67,657
Toyota Motor Corp. ................ 45,000 1,327,109
--------------
6,396,781
--------------
FOOD SERVICES, LODGING (1.3%)
AAPC Ltd. ......................... 400,000 265,778
Accor SA........................... 4,200 628,924
62
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
American General Hospitality Corp. 8,700 $ 215,325
Doubletree Corp.*.................. 9,627 395,910
Fujita Kanko, Inc.................. 3,000 37,693
Host Marriott Corp.*............... 200,300 3,567,844
Innkeepers USA Trust .............. 23,800 357,000
Interstate Hotels Co.*............. 12,900 379,744
Jurys Hotel Group PLC.............. 100,000 507,908
La Quinta Motor Inns, Inc. ........ 191,600 4,191,250
McDonald's Corp.................... 158,300 7,647,869
QPQ Corp.*......................... 16,400 2,050
QPQ Corp.--Warrants*............... 16,400 513
Restaurant Brands NZ Ltd.*......... 300,000 521,664
Sanyo Pax Co. Ltd.................. 33,000 518,279
Suburban Lodges of America, Inc.* . 20,700 434,700
Thistle Hotels PLC................. 131,600 347,233
--------------
20,019,684
--------------
HOUSEHOLD FURNITURE
APPLIANCES (1.1%)
Elamex S.A. de C.V.*............... 76,700 747,825
Electrolux B....................... 1,100 79,478
First Brands Corp.................. 69,000 1,582,688
Industrie Natuzzi (ADR)............ 28,400 727,750
Philips Electronics................ 2,680 191,949
Sanyo Electric Co. Ltd............. 90,000 403,630
Sharp Corp. ....................... 6,000 82,715
Sunbeam Corp....................... 345,700 13,050,175
Tostem Corp........................ 2,000 55,318
Toto............................... 5,500 67,664
--------------
16,989,192
--------------
LEISURE RELATED (1.6%)
Aristocrat Leisure Ltd............. 60,000 119,147
Canal Plus*........................ 350 68,133
Capcom Co. Ltd..................... 4,400 104,808
Cinar Films, Inc. (Class B)* ...... 15,000 487,500
Cyrk, Inc.*........................ 214,600 2,521,550
Disney (Walt) Co................... 80,791 6,483,478
Enix Corp.......................... 1,000 25,652
Granada Group PLC.................. 25,587 336,498
Harman International Industries,
Inc............................... 6,000 252,750
Imagineer Co. Ltd.*................ 14,000 470,291
ITT Corp.*......................... 130,100 7,944,230
KTM Motorradholding AG*............ 10,000 684,568
Mars Engineering Corp.............. 9,000 205,741
Namco Ltd. ........................ 15,300 590,053
Nelvana Limited*+.................. 18,000 260,690
Nintendo Co. ...................... 10,200 854,376
Nippon Broadcast System............ 7,000 775,674
Rank Group PLC..................... 32,498 205,848
Resorts World BHD.................. 24,000 72,266
Sega Enterprises Ltd............... 2,000 66,312
SMH AG............................. 100 57,104
Tag Heuer International SA (ADR)* . 50,200 756,138
Thorn EMI.......................... 4,927 88,376
Toei Co............................ 16,000 109,589
Toho Co. .......................... 400 65,963
Tokyo Dome Corp.................... 3,000 40,311
Tourism Holdings Ltd............... 70,000 $ 99,374
--------------
23,746,420
--------------
PHOTO & OPTICAL (0.2%)
Fuji Photo Film Co................. 16,000 643,574
Noritsu Koki Co. Ltd............... 36,000 1,774,714
--------------
2,418,288
--------------
RETAIL--GENERAL (2.6%)
Ahold N.V.......................... 1,789 150,916
BAA PLC............................ 40,000 368,565
Boots Co. PLC...................... 35,540 416,215
Carrefour.......................... 1,225 889,666
Centros Comerciales Pryca SA ...... 7,000 151,516
Consolidated Stores Corp.*......... 15,500 538,625
Daiei, Inc. ....................... 14,000 89,783
Dayton Hudson Corp................. 131,300 6,983,519
Deodeo Corp........................ 3,000 58,634
Dixons Group PLC................... 160,000 1,243,864
Doshisha Co. ...................... 7,000 78,789
Eiden Sakakiya Co. Ltd. ........... 25,000 209,406
Federated Department Stores,
Inc.*............................. 124,200 4,315,950
Fingerhut Companies, Inc........... 200,000 3,487,500
Great Universal Stores............. 39,213 396,890
Harvey Nichols Group PLC........... 30,600 143,650
Hennes & Mauritz AB (B Shares) .... 2,500 89,669
Homac Corp. ....................... 11,000 156,444
Home Wide Corp., Inc............... 16,000 117,965
Isetan Co.......................... 72,000 892,069
Japan Airport Terminal Co.......... 65,000 788,326
Karstadt AG........................ 150 54,189
Kokuyo Co. ........................ 2,000 54,097
Marks & Spencer.................... 90,055 746,575
Marui Co. Ltd...................... 7,000 130,093
Metro AG*.......................... 950 103,504
Nissen Corp. Ltd.*................. 5,700 21,734
Paris Miki, Inc.................... 36,600 1,076,189
Petco Animal Supplies, Inc.* ...... 13,100 393,000
Pinault Printemps.................. 600 288,325
Rinascente--Rights*................ 12,500 2,190
Rinascente--Warrants*.............. 650 321
Rite Aid Corp...................... 72,500 3,615,938
Sainsbury (J) PLC.................. 26,514 160,882
Sato Corp. ........................ 48,790 859,923
Sears, Roebuck & Co................ 156,600 8,417,250
Sriwani Holdings BHD............... 278,000 578,249
St. Dupont*+....................... 29,100 782,378
Swank International Manufacturing . 300,000 32,527
Takihyo Co. Ltd.................... 24,000 221,970
Warehouse Group Ltd. .............. 140,000 417,467
Xebio Co. ......................... 7,400 182,078
--------------
39,706,840
--------------
TOTAL CONSUMER CYCLICALS (9.2%) 139,827,760
--------------
CONSUMER NONCYCLICALS
BEVERAGES (1.6%)
Asahi Breweries Ltd................ 8,000 119,361
Bass Breweries..................... 60,000 732,135
Cadbury Schweppes PLC.............. 18,792 167,521
63
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Carlsberg 'A'...................... 900 $ 49,476
Coca-Cola Amatil Ltd............... 7,600 98,700
Coca-Cola Co. ..................... 267,700 18,069,750
Fraser & Neave..................... 30,000 214,031
Grand Metropolitan................. 107,811 1,043,635
Guinness PLC....................... 100,000 978,844
Heineken N.V. ..................... 801 136,692
Kirin Brewery Co................... 16,000 166,129
Lion Nathan Ltd. .................. 25,000 63,340
Louis Dreyfus Citrus*.............. 43,500 1,624,764
Louis Vuitton Moet Hennessy........ 2,400 645,260
Panamerican Beverages.............. 18,000 591,750
Quilmes Industrial Quins (ADR) .... 29,100 338,288
--------------
25,039,676
--------------
CONTAINERS (0.1%)
Silgan Holdings, Inc.*............. 21,200 821,500
Toyo Seikan Kaisha................. 3,300 73,135
--------------
894,635
--------------
DRUGS (4.3%)
Astra AB (A Shares)................ 25,000 466,148
Centocor, Inc.*.................... 322,200 10,008,338
Daiichi Pharmaceutical Co. ........ 5,000 88,125
Eisai Co. Ltd...................... 5,000 94,669
Geltex Pharmaceuticals, Inc.* ..... 41,700 839,213
Glaxo Wellcome PLC................. 66,706 1,376,964
Hafslund ASA (B Shares)............ 11,700 63,607
Jones Medical Industries, Inc. .... 6,600 313,500
McKesson Corp...................... 40,000 3,100,000
MedImmune, Inc.*................... 19,000 351,500
Merck & Co., Inc................... 103,000 10,660,500
Novartis AG........................ 2,151 3,437,476
Novo-Nordisk A/S (B Shares)........ 6,000 654,261
Nycomed ASA (B Shares)............. 10,000 142,742
Orion-Yhtymae Oy (B Shares)........ 10,000 379,387
Pfizer, Inc........................ 130,200 15,558,900
Roche Holdings AG Genusscheine .... 266 2,405,019
Sankyo Co. ........................ 67,000 2,250,676
Santen Pharmaceutical Co........... 51,000 1,027,921
Schering AG........................ 1,250 133,895
Smithkline Beecham PLC............. 157,338 2,895,532
Taisho Pharmaceutical Co........... 38,000 1,024,518
Warner-Lambert Co.................. 55,500 6,895,875
Zeneca Group PLC................... 30,000 991,828
--------------
65,160,594
--------------
FOODS (0.8%)
Ajinomoto Co., Inc................. 9,000 96,588
BSN Gervais Danone................. 2,100 346,980
Campbell Soup Co................... 134,120 6,706,000
Fine Host Corp.*................... 8,500 267,750
Fyffes PLC......................... 1,100,000 1,584,368
Karlshamns AB*+.................... 82,300 969,757
Nestle AG.......................... 930 1,226,416
Nippon Meat Packers, Inc........... 4,000 51,653
Nissin Food Products Co............ 3,000 78,004
Nutricia Verenigde Bedrijven N.V.
+................................. 4,000 631,666
Oie Sangyo Co. Ltd. ............... 6,000 59,681
PT Sekar Bumi...................... 160,000 202,303
Shriram Industrial Enterprises
Ltd. (GDR)*+...................... 24,000 $ 42,000
Tingyi Holdings Corp............... 480,000 119,577
Viscofan Envoltura................. 9,000 210,379
Warabeya Nichiyo Co. Ltd. ......... 18,000 146,061
Yamakazi Baking Co. ............... 4,000 70,500
--------------
12,809,683
--------------
HOSPITAL SUPPLIES & SERVICES (1.9%)
Boston Scientific Corp.*........... 109,586 6,732,690
Cochlear Ltd....................... 60,000 194,803
Columbia/HCA Healthcare Corp. .... 161,500 6,348,969
Healthsouth Corp.*................. 11,017 274,736
Medtronic, Inc..................... 75,500 6,115,500
National Surgery Centers, Inc.* ... 11,700 413,888
Oxford Health Plans, Inc.*......... 71,100 5,101,425
Scandinavian Mobility
International, Inc. .............. 8,000 86,150
Steris Corp.*...................... 91,800 3,431,025
--------------
28,699,186
--------------
RETAIL--FOOD (0.2%)
Daimon Co. Ltd..................... 10,000 67,970
Familymart Co...................... 2,000 98,072
Ito Yokado Co. Ltd. ............... 14,000 812,320
Jusco Co........................... 9,000 303,900
McBride PLC........................ 60,000 135,340
Promodes........................... 300 116,851
Santa Isabel S.A. (ADR)............ 10,000 322,500
Seven-Eleven Japan Ltd............. 7,600 574,261
Tesco PLC.......................... 71,199 437,950
United Natural Foods, Inc.*........ 13,000 273,000
--------------
3,142,164
--------------
SOAPS & TOILETRIES (1.6%)
BIC................................ 600 98,116
Colgate Palmolive Co............... 170,000 11,092,500
Gillette Corp...................... 113,420 10,746,545
L'Oreal*........................... 2,455 1,034,353
Shiseido Co........................ 5,000 82,454
Unilever........................... 25,605 733,783
Unilever N.V. CVA.................. 3,790 797,747
--------------
24,585,498
--------------
TOBACCO (1.9%)
Imperial Tobacco PLC*.............. 80,000 514,725
Loews Corp......................... 52,500 5,256,563
Philip Morris Cos., Inc. .......... 488,200 21,663,875
RJ Reynolds BHD.................... 200,000 499,208
Rothmans of Pall Mall BHD.......... 6,000 58,954
Swedish Match Co. AB............... 360,000 1,211,986
--------------
29,205,311
--------------
TOTAL CONSUMER NONCYCLICALS (12.4%) 189,536,747
--------------
CREDIT SENSITIVE
BANKS (2.7%)
ABN Amro Holding N.V. ............. 26,124 487,064
Akita Bank......................... 22,000 128,226
Asahi Bank Ltd..................... 76,000 646,540
Banca Commerciale Italiana ........ 35,000 72,447
Banco Bilbao Vizcaya SA............ 6,464 525,008
Banco Latinoamericano de
Exportaciones S.A. (E Shares) .... 15,000 646,875
64
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Banco Popular...................... 400 $ 97,980
Banco Santander SA................. 13,221 407,278
Banco Santander--Chile (ADR) ...... 10,000 147,500
Bank Austria AG.................... 920 50,984
Bank of Tokyo-Mitsubishi Bank ..... 96,000 1,926,533
Banque Nationale de Paris*......... 4,450 183,401
Barclays Bank ..................... 36,000 714,356
BHW Holding AG*.................... 26,300 444,894
Chase Manhattan Corp............... 186,500 18,102,156
Cie Fin Paribas Series A .......... 2,750 189,988
CS Holdings........................ 6,700 860,151
Dai-Ichi Kangyo Bank............... 106,000 1,442,806
Den Danske Bank.................... 1,300 126,484
Deutsche Bank AG................... 13,300 780,962
Dresdner Bank AG................... 2,900 101,606
Fuji Bank Ltd. .................... 63,000 945,467
Generale de Banque................. 200 76,983
Grupo Financiero Bantorte (Class
B)*............................... 22,500 23,389
Hang Seng Bank..................... 58,000 827,256
HSBC Holdings PLC.................. 37,374 1,107,454
HSBC Holdings PLC (H.K.$).......... 20,000 601,500
Istituto Bancario San Paolo di
Torino............................ 15,000 109,287
Istituto Mobilare Italiano......... 10,000 89,970
Kredietbank........................ 90 36,268
Lloyds TSB Group PLC............... 167,866 1,721,391
Malayan Banking Berhad............. 29,000 304,477
Mediobanca Spa..................... 10,000 60,686
Mitsubishi Trust & Banking Corp. . 60,000 947,561
National Australia Bank Ltd. ...... 55,400 793,511
Overseas Union Bank Ltd............ 40,000 249,003
Overseas Union Bank Ltd.--Rights* . 8,000 4,365
Sakura Bank Ltd. .................. 82,000 628,183
Schweizerische Bankgesellschaft ... 850 971,927
Shizuoka Bank...................... 62,000 708,664
Skandinaviska Enskilda Banken
(Series A)........................ 8,000 86,496
Societe Generale................... 2,400 267,905
Sparbanken Sverige AB
(A Shares)........................ 12,000 267,258
Sumitomo Bank Ltd.................. 118,000 1,935,608
Svenska Handelsbanken
(Series A)........................ 3,100 99,348
Toho Bank ......................... 34,000 209,144
--------------
41,156,340
--------------
FINANCIAL SERVICES (4.9%)
Abbey National PLC ................ 14,314 195,394
American Express Co................ 33,900 2,525,550
Amvescap PLC....................... 90,000 525,130
Associated First Capital Corp. ... 61,600 3,418,800
Beneficial Corp. .................. 90,200 6,409,838
CMIC Finance & Securities Co. Ltd. 200,000 50,183
Credit Saison Co. ................. 80,900 1,976,442
Daiwa Securities Co. Ltd........... 19,000 149,865
Dexia France....................... 3,500 340,667
FIRSTPLUS Financial Group, Inc.* .. 12,000 408,000
Groupe Bruxelles Lambert SA........ 450 75,413
Hong Leong Finance Ltd. ........... 50,000 $ 105,617
Household International, Inc. ..... 15,000 1,761,563
JCG Holdings....................... 60,000 48,404
MBNA Corp.......................... 539,950 19,775,669
Merrill Lynch & Co., Inc........... 119,200 7,107,300
Morgan Stanley, Dean Witter,
Discover & Co..................... 366,600 15,786,713
Nichiei Co. Ltd. .................. 13,300 1,543,408
Nomura Securities Co............... 61,000 840,939
PMI Group, Inc..................... 84,000 5,239,500
Promise Co. Ltd.................... 10,600 606,718
Salomon, Inc....................... 74,800 4,160,750
Sanyo Shinpan Finance Co. Ltd. .... 9,800 606,247
Schroders PLC...................... 3,875 105,856
Takefuji Corp...................... 26,000 1,420,120
Yamaichi Securities................ 70,000 208,272
--------------
75,392,358
--------------
INSURANCE (3.3%)
Aegon N.V. ........................ 15,000 1,046,833
Allianz AG Holding................. 9,000 1,883,709
AMEV N.V........................... 17,000 756,878
Assicurazioni Generali............. 21,800 396,116
Commercial Union PLC............... 10,726 112,758
Corporacion Mapfre Cia
Inter SA.......................... 12,000 638,363
Fortis AG.......................... 740 152,805
General Accident................... 8,971 130,971
GIO Australia Holdings Ltd. ...... 200,000 619,141
ING Groep N.V...................... 18,268 842,180
Istituto Naz Delle Assicurazioni .. 60,000 91,381
Koa Fire & Marine.................. 19,000 114,885
Legal & General Group.............. 23,090 155,866
Life Re Corp....................... 240,000 11,190,000
MGIC Investment Corp. ............. 132,800 6,366,100
Mitsui Marine & Fire Insurance
Co................................ 13,000 93,919
Norwich Union PLC*................. 117,500 624,949
Pacific & Orient BHD............... 150,000 356,577
PennCorp Financial Group, Inc. .... 131,400 5,058,900
Prudential Corp.................... 62,486 604,879
Royal & Sun Alliance Insurance
Group PLC......................... 49,613 365,877
Schweizerische Ruckversicherungs
Gesellschaft...................... 640 904,896
Skandia Forsakrings AB............. 2,500 92,259
TIG Holdings, Inc. ................ 36,900 1,153,125
Tokio Marine & Fire Insurance Co. . 34,000 444,987
Travelers Group, Inc............... 258,834 16,322,719
--------------
50,521,073
--------------
REAL ESTATE (0.5%)
British Land Co.................... 8,416 79,297
Castellum AB*...................... 136,140 1,022,435
Cheung Kong Holdings............... 59,000 582,590
City Developments Ltd.............. 50,000 489,613
Daibiru Corp....................... 17,000 204,694
DBS Land........................... 17,000 53,746
Diligentia AB*..................... 800 9,737
JP Realty, Inc..................... 13,100 355,338
Land Securities PLC................ 9,978 140,773
65
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Lend Lease Corp. Ltd............... 4,100 $ 86,680
Macerich Co. ...................... 12,700 352,425
MEPC PLC........................... 8,200 67,297
Mitsubishi Estate Co............... 46,000 666,259
Mitsui Fudosan..................... 20,000 275,718
Nackebro Fastighets AB............. 310 3,974
New World Development Co........... 48,000 286,242
Sap Holdings*...................... 40,000 90,333
Singapore Land Ltd................. 60,000 272,785
Sino Land Co. ..................... 740,000 802,344
Sumitomo Realty & Development Co. . 152,000 1,339,499
Sun Hung Kai Properties............ 48,000 577,750
Wharf Holdings..................... 17,000 73,729
--------------
7,833,258
--------------
UTILITY--ELECTRIC (0.7%)
British Energy PLC................. 418,000 1,019,412
China Light & Power Co. Ltd. ...... 36,000 203,994
Edison Spa......................... 15,000 74,578
Electrabel......................... 1,290 276,414
Electricidade de Portugal*......... 50,800 932,002
Endesa............................. 8,564 718,814
Energy Group PLC*.................. 13,333 142,273
Enersis S.A. (ADR)................. 6,000 213,375
Gas Y Electridad SA (Series 2) .... 5,000 268,359
Hidroelectrica del Cantabrico ..... 12,000 486,915
Iberdrola SA....................... 95,289 1,202,613
Kansai Electric Power Co., Inc. ... 22,400 431,934
National Grid Group PLC............ 140,000 511,562
National Power PLC................. 120,560 1,047,634
Powergen PLC (ADR)................. 1,250 60,625
RWE AG............................. 8,600 369,861
Tenaga Nasional BHD................ 85,000 414,223
Tohoku Electric Power Co., Inc. ... 11,500 204,694
Tokyo Electric Power Co., Inc. .... 28,000 588,779
Tractebel Investment International
Capital........................... 220 91,713
Tractebel Investment International
Capital--Warrants*................ 220 0
United Utilities PLC............... 8,965 98,573
Veba AG............................ 20,000 1,129,652
Viag AG............................ 500 228,367
--------------
10,716,366
--------------
UTILITY--GAS (0.0%)
Centrica PLC*...................... 100,557 122,618
Scottish Power PLC................. 13,327 86,745
Thames Water....................... 7,439 85,881
--------------
295,244
--------------
UTILITY--TELEPHONE (1.4%)
British Telecommunications......... 181,984 1,351,151
Cable & Wireless................... 53,873 495,495
Empresas Telex--Chile S.A. (ADR) .. 14,100 79,313
Frontier Corp...................... 18,800 374,825
Hellenic Telecommunication
Organization SA*.................. 17,000 399,151
Hellenic Telecommunication
Organization SA--Rights*.......... 17,000 0
Kon. PTT Nederland+................ 15,000 588,366
Portugal Telecom SA................ 1,670 $ 67,348
PT Indonesian Satellite (ADR) ..... 9,100 272,431
Singapore Telecommunications Ltd. 66,000 121,872
Telecom Corp. of New Zealand ...... 23,300 118,699
Telecom Italia Spa................. 97,500 291,830
Telefonica de Espana SA............ 30,829 891,126
Telefonica del Peru S.A. (ADR) .... 32,000 838,000
Telekom Malaysia BHD............... 67,500 315,571
Telephone & Data Systems, Inc. .... 42,100 1,597,169
Teleport Communications Group,
Inc. (Class A)*................... 314,300 10,725,474
Videsh Sanchar Nigam Ltd. (GDR)*+ 49,000 971,425
--------------
19,499,246
--------------
TOTAL CREDIT SENSITIVE (13.5%) ... 205,413,885
--------------
ENERGY
COAL & GAS PIPELINES (0.1%)
BG PLC............................. 142,583 524,561
OMV AG............................. 5,000 640,112
--------------
1,164,673
--------------
OIL--DOMESTIC (1.1%)
Apache Corp........................ 139,100 4,520,750
Costilla Energy, Inc.*............. 27,500 354,063
KCS Energy, Inc.................... 9,400 383,050
Louis Dreyfus Natural Gas Corp.* .. 164,700 2,676,375
Murphy Oil Corp.................... 40,000 1,950,000
Tom Brown, Inc.*................... 50,000 1,062,500
USX-Marathon Group................. 205,700 5,939,588
--------------
16,886,326
--------------
OIL--INTERNATIONAL (1.6%)
British Petroleum Co. PLC.......... 149,481 1,857,598
Canadian Occidental................ 52,000 1,170,000
Cosmo Oil Co. Ltd.................. 11,000 52,596
Elf Aquitaine...................... 12,100 1,305,392
ENI Spa............................ 120,000 679,186
ENI Spa (ADR)...................... 5,000 284,375
Gulf Canada Resources Ltd.*........ 717,900 5,967,544
Mitsubishi Oil Co.................. 8,000 35,599
Nippon Oil Co. Ltd. ............... 22,000 120,356
Norsk Hydro AS..................... 2,100 114,453
Oil Search Ltd..................... 340,000 924,181
Petrofina SA....................... 290 109,812
Repsol SA.......................... 12,748 538,890
Royal Dutch Petroleum Co........... 12,697 2,641,511
Texaco, Inc. ...................... 74,500 8,101,875
Total Campagnie Francaise.......... 900 90,969
--------------
23,994,337
--------------
OIL--SUPPLIES & CONSTRUCTION (4.0%)
Baker Hughes, Inc.................. 131,250 5,077,734
BJ Services Co.*................... 117,400 6,295,575
Bouygues Offshore SA (ADR)......... 80,000 1,000,000
Coflexip (ADR)..................... 11,000 331,375
Compagnie Generale de Geophysique
(ADR)*............................ 139,000 2,675,750
66
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
Diamond Offshore Drilling, Inc.* .. 30,000 $ 2,343,750
Halliburton Co..................... 156,650 12,414,513
Nabors Industries, Inc.*........... 201,500 5,037,500
Noble Drilling Corp.*.............. 193,700 4,370,356
Parker Drilling Co.*............... 265,600 2,954,800
Rowan Cos., Inc.*.................. 20,800 586,300
Santa Fe International Corp.* ..... 40,000 1,360,000
Schlumberger, Ltd.................. 31,500 3,937,500
Transocean Offshore, Inc........... 183,000 13,290,375
--------------
61,675,528
--------------
RAILROADS (0.5%)
East Japan Railway Co.............. 55 282,174
Genesee & Wyoming, Inc.
(Class A)*........................ 21,000 551,250
Kinki Nippon Railroad Co........... 29,000 177,122
Odakyu Electric Railway Co......... 4,000 23,733
Tobu Railway Co. Ltd............... 14,000 64,619
Tokyu Corp......................... 17,000 105,462
Union Pacific Corp................. 103,000 7,261,500
--------------
8,465,860
--------------
TOTAL ENERGY (7.3%)............... 112,186,724
--------------
TECHNOLOGY
ELECTRONICS (3.7%)
Altera Corp.*...................... 117,900 5,953,950
Applied Materials, Inc.*........... 96,100 6,805,081
Austria Mikro Systeme
International+.................... 1,430 121,201
BMC Industries, Inc................ 5,100 174,675
Cisco Systems, Inc.*............... 182,800 12,270,450
Electrocomponents PLC.............. 8,375 62,529
Enplas Corp........................ 20,000 364,715
Fujimi, Inc........................ 3,700 242,448
Hirose Electric Co. Ltd............ 1,900 130,303
Hitachi Ltd. ...................... 94,000 1,049,821
Hoya Corp.......................... 43,000 1,913,446
Insight Enterprises, Inc.*......... 8,700 261,544
Intel Corp......................... 55,900 7,927,319
Kyocera Corp....................... 1,000 79,400
LSI Logic Corp.*................... 45,530 1,456,960
Micron Electronics, Inc.*.......... 25,200 448,875
Micron Technology, Inc.*........... 94,500 3,774,094
National Semiconductor Corp.* ..... 113,500 3,475,938
Rohm Co. Ltd....................... 8,000 823,663
Seagate Technology, Inc.*.......... 18,500 650,969
SGS-Thomson Microelectronics
N.V.*............................. 10,000 789,559
Shinko Electric Industries......... 24,200 884,722
Spectrum Holobyte, Inc.*........... 30,700 149,663
TDK Corp........................... 22,000 1,614,344
Teradyne, Inc.*.................... 56,300 2,209,775
Tokyo Electron..................... 9,400 449,455
Towa Corp.*........................ 8,000 337,143
Yokogawa Electric Corp............. 164,000 1,423,785
3D Labs, Inc. Ltd.*................ 1,000 29,000
--------------
55,874,827
--------------
OFFICE EQUIPMENT (1.6%)
Canon, Inc......................... 15,000 408,341
Ceridian Corp.*.................... 155,400 6,565,650
Compaq Computer Corp.*............. 82,470 $ 8,185,148
Dell Computer Corp.*............... 42,900 5,038,069
Fujitsu Ltd........................ 28,000 388,448
Oce-Van De Grinten N.V............. 460 59,332
Read-Rite Corp.*................... 9,900 206,663
Ricoh Elemex Corp.................. 9,000 117,006
Sterling Software, Inc.*........... 8,500 265,625
Storage Technology Corp.*.......... 77,700 3,457,650
--------------
24,691,932
--------------
<PAGE>
OFFICE EQUIPMENT SERVICES (2.2%)
Accugraph Corp. (Class A)*......... 30,000 28,241
Cognos, Inc.*...................... 13,200 410,850
Comverse Technology, Inc.*......... 29,000 1,508,000
First Data Corp.................... 158,730 6,974,199
Fuji Soft Corp..................... 19,800 863,799
Istar Internet, Inc.*+............. 30,000 42,362
Microsoft Corp.*................... 59,300 7,494,038
Misys PLC.......................... 25,000 567,038
Netscape Communications Corp.* .... 63,700 2,042,381
Oracle Corp.*...................... 244,050 12,294,019
SAP AG............................. 2,000 401,170
Saville Systems Ireland (ADR)* .... 8,700 452,400
--------------
33,078,497
--------------
TELECOMMUNICATIONS (3.1%)
ADC Telecommunications, Inc.* ..... 196,200 6,548,175
Architel Systems Corp.*............ 30,300 162,366
BCE Mobile Communications, Inc.* .. 4,000 124,262
Comnet Cellular, Inc.*............. 12,200 423,950
Corecomm, Inc.*.................... 3,600 62,100
DDI Corp. ......................... 140 1,033,418
Deutsche Telekom AG (ADR).......... 70,000 1,688,750
Ericsson (L.M.) Telephone Co.
(Series B)........................ 24,700 973,881
E.R.G. Limited..................... 792,578 897,654
Filtronic Comtek PLC............... 300,000 1,977,664
Hong Kong Telecommunications ...... 88,800 212,048
ICG Communications, Inc.*.......... 18,800 361,900
Mannesmann AG...................... 350 156,345
Millicom International Cellular
SA*............................... 5,600 267,400
NetCom Systems AB
(B Shares)*....................... 44,000 621,013
Nextel Communications, Inc. (Class
A)*............................... 98,600 1,867,238
Nokia Corp. (ADR).................. 95,500 7,043,125
Rogers Cantel Mobile
Communications (Class B)*......... 6,000 112,966
SK Telecom Co. Ltd................. 127,720 1,285,183
Spectrum Network Systems
Ltd.*+............................ 440,000 106,311
Tadiran Telecommunications Ltd. .. 60,000 1,293,750
Telecom Italia Mobile Spa.......... 150,000 485,133
Tellabs, Inc.*..................... 113,000 6,313,875
Vodafone Group..................... 245,846 1,197,085
WorldCom, Inc.*.................... 387,430 12,397,760
--------------
47,613,352
--------------
TOTAL TECHNOLOGY (10.6%).......... 161,258,608
--------------
67
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------
DIVERSIFIED
MISCELLANEOUS (0.5%)
BTR PLC............................ 117,127 $ 400,687
Cie Generale des Eaux.............. 10,850 1,390,245
Compagnie Generale de
Eaux--Warrants*................... 10,850 6,499
Crean (James) PLC--Units........... 40,000 120,078
Damskibs AS (Class B).............. 5 178,852
GKN PLC............................ 5,325 91,704
Hanson PLC......................... 16,666 82,816
Hutchison Whampoa.................. 123,000 1,063,725
Indonesia Fund, Inc.*.............. 4,000 43,500
Industrias Campos Hermanos
(B Shares)*....................... 90,000 369,242
International UNP Holdings*........ 143,000 18,122
International UNP
Holdings--Warrants*............... 125,000 0
Lagardere S.C.A.................... 2,100 60,999
Lyonnais des Eaux Dumez............ 1,000 100,737
Mitsubishi Corp.................... 10,000 124,771
Mitsui & Co. ...................... 39,000 374,313
Montedison Spa*.................... 74,000 48,824
Pilkington PLC..................... 17,397 39,676
Sime Darby BHD..................... 180,000 599,049
Smiths Industries.................. 5,559 71,210
Sophus Berendsen A/S 'B'........... 385 55,666
Sumitomo Corp...................... 22,000 209,231
Taiwan Fund........................ 5,000 126,250
Tomkins PLC........................ 70,000 302,975
U.S. Industries, Inc.*............. 89,700 3,195,563
Williams Holdings PLC.............. 10,569 56,829
--------------
TOTAL DIVERSIFIED (0.5%).......... 9,131,563
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (64.7%)
(Cost $804,385,163)............... 987,897,391
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.0%)
Republic Industries, Inc.
6.5% Exch. Conv................... 21,900 536,550
--------------
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
Chancellor Broadcasting
7.0% Conv.+ ...................... 7,900 553,000
--------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A .............. 10,400 582,400
--------------
TOTAL BUSINESS SERVICES (0.1%) ... 1,671,950
--------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Continental Airlines Finance Trust
8.5% Conv. ....................... 12,300 971,700
--------------
LEISURE RELATED (0.0%)
Village Roadshow Ltd............... 10,000 25,294
--------------
RETAIL--GENERAL (0.0%)
Fielmann AG........................ 3,000 91,175
--------------
TOTAL CONSUMER CYCLICALS (0.1%) 1,088,169
--------------
CONSUMER NONCYCLICALS (0.0%)
CONTAINERS
Crown Cork & Seal Co., Inc.
4.5% Conv. ....................... 14,700 $ 742,350
--------------
CREDIT SENSITIVE
FINANCIAL SERVICES (0.0%)
Money Store
6.5% Conv. ....................... 12,000 327,000
--------------
INSURANCE (0.1%)
PennCorp Financial Group, Inc.
7.0% Conv.+ ...................... 12,200 765,550
--------------
TOTAL CREDIT SENSITIVE (0.1%) .... 1,092,550
--------------
ENERGY (0.0%)
OIL--DOMESTIC
Devon Financing Trust
$3.25 Conv. ...................... 7,700 539,000
--------------
<PAGE>
TECHNOLOGY
TELECOMMUNICATIONS (0.4%)
Nokia Oy Cum....................... 19,092 1,427,672
Qualcomm Financial Trust
5.75% Conv.+ ..................... 29,400 1,392,825
WorldCom, Inc.
8.0% Conv. ....................... 22,700 2,545,237
--------------
TOTAL TECHNOLOGY (0.4%)........... 5,365,734
--------------
TOTAL PREFERRED STOCKS (0.7%)
(Cost $8,003,929)................. 10,499,753
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES
:
BASIC MATERIALS (0.2%)
METALS & MINING
Southern Peru Ltd.
7.9%, 05/30/07+................. $2,500,000 2,541,500
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
United Waste Systems, Inc.:
4.5% Conv., 06/01/01+........... 710,000 977,138
4.5% Conv., 06/01/01............ 50,000 68,813
-----------
1,045,951
-----------
PRINTING, PUBLISHING &
BROADCASTING (0.7%)
Time Warner, Inc.
9.125%, 01/15/13................ 9,000,000 9,992,700
-----------
PROFESSIONAL SERVICES (0.3%)
Career Horizons, Inc.
7.0% Conv., 11/01/02............ 570,000 1,249,725
Danka Business Systems PLC
6.75% Conv., 04/01/02........... 720,000 1,066,500
First Financial Management Corp.
5.0% Conv., 12/15/99............ 985,000 2,004,475
Personnel Group of America
5.75% Conv., 07/01/04+ ......... 195,000 209,381
-----------
4,530,081
-----------
TOTAL BUSINESS SERVICES (1.1%) . 15,568,732
-----------
</TABLE>
68
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS (0.1%)
MACHINERY
DII Group, Inc.
6.0% Conv., 10/15/02+ .......... $ 1,215,000 $ 1,640,250
--------------
CONSUMER CYCLICALS
LEISURE RELATED (0.0%)
CUC International, Inc.
3.0% Conv., 02/15/02+........... 640,000 679,200
--------------
RETAIL--GENERAL (0.2%)
Central Garden & Pet Co.:
6.0% Conv. Sub. Note,
11/15/03+....................... 565,000 624,325
6.0% Conv., 11/15/03............ 260,000 287,300
Home Depot, Inc.
3.25% Conv., 10/01/01........... 590,000 671,125
U.S. Office Products Co.
5.5% Conv., 02/01/01............ 1,230,000 1,511,363
--------------
3,094,113
--------------
TOTAL CONSUMER CYCLICALS (0.2%) 3,773,313
--------------
CONSUMER NONCYCLICALS
DRUGS (0.1%)
MedImmune, Inc.:
7.0% Conv. Sub., 07/01/03+ ..... 400,000 454,000
7.0% Conv., 07/01/03............ 100,000 113,500
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+.......... 580,000 630,025
4.25% Conv., 05/31/00........... 80,000 86,900
--------------
1,284,425
--------------
HOSPITAL SUPPLIES & SERVICES (0.1%)
FPA Medical Management, Inc.
6.5% Conv., 12/15/01+........... 630,000 721,350
Phycor, Inc.
4.5% Conv., 02/01/03............ 700,000 764,750
Tenet Healthcare Corp.
6.0% Conv., 12/01/05+........... 710,000 887,500
--------------
2,373,600
--------------
TOTAL CONSUMER NONCYCLICALS (0.2%) 3,658,025
--------------
CREDIT SENSITIVE
BANKS (1.6%)
Deutsche Bank
6.7%, 12/13/06.................. 8,000,000 7,800,000
Dime Capital Trust I
9.33%, 05/06/27................. 7,600,000 7,914,564
St. George Bank Ltd.
7.15%, 10/15/05+ ............... 9,525,000 9,476,423
--------------
25,190,987
--------------
FINANCIAL SERVICES (1.2%)
Corp Andina de Fomento
7.25%, 03/01/07................. 10,700,000 10,729,960
Morgan Stanley, Dean Witter,
Discover & Co.
6.875%, 03/01/07................ 6,365,000 6,245,975
RAC Financial Group, Inc.:
7.25% Conv. Sub., 08/15/03+ .... 505,000 1,095,850
7.25% Conv, 08/15/03............ 50,000 108,500
--------------
18,180,285
--------------
FOREIGN GOVERNMENT (0.6%)
Ministry Finance of Russia
10.0%, 06/26/07+................ $10,000,000 $ 9,965,000
--------------
INSURANCE (0.1%)
Corporacion Mapfre
8.5% Conv., 02/27/99...... Peseta 4,700,000 31,891
Penn Treaty American Corp.:
6.25% Conv., 12/01/03+.......... $ 735,000 918,750
6.25% Conv., 12/01/03........... 45,000 56,250
--------------
1,006,891
--------------
MORTGAGE RELATED (4.3%)
Federal Home Loan Mortgage
Corp.:
7.0%, 09/01/11.................. 9,718,252 9,700,031
7.0%, 01/01/12.................. 4,620,121 4,611,459
Federal National Mortgage
Association:
6.5%, 01/01/11.................. 890,789 872,417
6.0%, 04/01/11.................. 11,754,380 11,324,617
6.5%, 08/01/11.................. 8,515,371 8,339,742
7.0%, 08/01/26.................. 2,430,746 2,382,139
7.0%, 05/01/26.................. 9,962,065 9,762,854
Government National Mortgage
Association:
7.5%, 11/15/26.................. 9,784,602 9,809,093
7.5%, 04/15/27.................. 2,985,002 2,992,474
World Financial Property
6.95%, 09/01/13+................ 5,250,000 5,171,250
--------------
64,966,076
--------------
UTILITY--GAS (0.6%)
RAS Laffan Liquid Natural Gas
8.294%, 09/15/14+ .............. 8,500,000 8,919,050
--------------
U.S. GOVERNMENT (10.9%)
U.S. Treasury:
6.125% Note, 08/31/98........... 72,300,000 72,480,750
6.25% Note, 04/30/01............ 22,500,000 22,443,750
6.5% Note, 05/31/02............. 46,200,000 46,373,250
6.625% Bond, 02/15/27........... 26,500,000 25,920,306
--------------
167,218,056
--------------
TOTAL CREDIT SENSITIVE (19.3%) . 295,446,345
--------------
ENERGY
COAL & GAS PIPELINES (0.1%)
Nabors Industries, Inc.
5.0% Conv., 05/15/06............ 720,000 1,085,400
Swift Energy Co.
6.25% Conv., 11/15/06........... 665,000 667,494
--------------
1,752,894
--------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07........................ 365,000 424,769
Seacor Holdings, Inc.:
5.375% Conv., 11/15/06+......... 605,000 635,250
5.375% Conv., 11/15/06 ......... 70,000 73,500
--------------
1,133,519
--------------
TOTAL ENERGY (0.2%)............. 2,886,413
--------------
69
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1997 (Unaudited)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------
TECHNOLOGY
ELECTRONICS (1.2%)
Altera Corp.
5.75% Conv. Sub. Note,
06/15/02+ ...................... $ 1,065,000 $ 2,175,263
Applied Magnetics Corp.
7.0% Conv. Sub., 03/15/06 ...... 1,395,000 1,940,794
Baan Co.
4.5% Con. Sub. Note,
12/15/01+....................... 780,000 1,240,200
HMT Technology Corp.
5.75% Conv., 01/15/04+ ......... 1,790,000 1,525,975
Motorola, Inc.
Zero Coupon Conv., 09/27/13 .... 1,105,000 994,500
Photronics, Inc.
6.0% Conv., 06/01/04............ 955,000 1,064,825
Quantum Corp.
5.0% Conv., 03/01/03+ .......... 345,000 658,088
Sanmina Corporation
5.5% Conv., 08/15/02+........... 1,040,000 2,402,400
SCI Systems, Inc.
5.0% Conv., 05/01/06............ 1,195,000 1,741,713
Solectron Corp.
6.0% Conv., 03/01/06+........... 765,000 956,250
Trikon Technologies, Inc.
7.125% Conv., 10/15/01+......... 530,000 376,300
Xilinx, Inc.
5.25% Conv., 11/01/02+.......... 1,180,000 1,358,475
3Com Corp.
10.25% Conv., 11/01/01+ ........ 865,000 1,198,025
--------------
17,632,808
--------------
TELECOMMUNICATIONS (0.1%)
Comverse Technology, Inc.
5.75% Conv. Sub., 10/01/06+ .... 1,425,000 1,866,750
--------------
TOTAL TECHNOLOGY (1.3%)......... 19,499,558
--------------
DIVERSIFIED (0.0%)
MISCELLANEOUS
Brierley Investment Ltd.
9.0% Conv. Sub. Note, 06/30/98 . 14,000 13,694
--------------
TOTAL LONG-TERM DEBT SECURITIES (22.6%)
(Amo rtized Cost $336,901,368) .. 345,027,830
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Chase Manhattan Bank:
5.53%, due 08/18/97............. 18,000,000 17,867,280
5.53%, due 08/29/97............. 5,120,069 5,073,666
5.6%, due 09/29/97.............. 5,000,000 4,929,125
--------------
TOTAL BANKERS' ACCEPTANCES (1.8%) 27,870,071
--------------
CERTIFICATES OF DEPOSIT (1.0%)
Norinchuckin Bank Ltd.
5.78%, due 07/10/97............. $15,000,000 $ 15,000,306
--------------
COMMERCIAL PAPER
Associates Corp. of North
America
6.3%, due 07/01/97.............. 50,000,000 50,000,000
Bankers Trust Securities
6.3%, due 07/01/97.............. 9,900,000 9,900,000
Dakota Funding, Inc.
6.3%, due 07/01/97.............. 2,200,000 2,200,000
Dresdner U.S. Finance, Inc.
6.25%, due 07/01/97............. 11,900,000 11,900,000
Province of Quebec
5.56%, due 07/14/97............. 10,000,000 9,979,922
--------------
TOTAL COMMERCIAL PAPER (5.5%) 83,979,922
--------------
<PAGE>
TIME DEPOSITS
Mitsubishi Bank Ltd.-N.Y.
6.375%, due 07/01/97............ 44,700,000 44,700,000
Sumitomo Bank Ltd.
6.25%, due 07/01/97............. 5,600,000 5,600,000
--------------
TOTAL TIME DEPOSITS (3.3%) ..... 50,300,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (11.6%)
(Amortized Cost $177,151,174) .. 177,150,299
--------------
TOTAL INVESTMENTS (99.6%)
(Cost/Amortized Cost $1,326,441,634) 1,520,575,273
OTHER ASSETS
LESS LIABILITIES (0.4%)......... 6,927,599
--------------
NET ASSETS (100.0%).............. $1,527,502,872
==============
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION OF INVESTMENTS BY
GLOBAL REGION
As a Percentage of Total
Investments
<S> <C>
Canada................... 0.6%
France .................. 1.2
Germany ................. 1.0
Japan.................... 5.8
Latin America............ 1.2
Netherlands ............. 0.9
New Zealand & Australia . 1.3
Scandinavia.............. 1.5
Southeast Asia........... 1.1
Spain ................... 0.5
Switzerland ............. 0.8
United Kingdom........... 2.8
United States**.......... 80.6
Other European Countries. 0.7
-------
100.0%
</TABLE>
- ------------
* Non-income producing.
** Includes Short-Term Debt Securities of 11.7%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At June 30, 1997, these securities amounted to $72,651,431 or
4.8% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
70
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
1. Organization and Significant Accounting Policies
The Hudson River Trust (the "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 (the "1940 Act"), as amended, as an open-end management
investment company. The Trust issues shares of beneficial interest currently
divided among fourteen Portfolios (the "Portfolios"): Alliance Money Market,
Alliance Intermediate Government Securities, Alliance Quality Bond, Alliance
High Yield, Alliance Growth and Income, Alliance Equity Index, Alliance
Common Stock, Alliance Global, Alliance International, Alliance Aggressive
Stock, Alliance Small Cap Growth, Alliance Conservative Investors, Alliance
Balanced and Alliance Growth Investors. Effective October 2, 1996, the Trust
made available a second class of shares, Class IB, for each of the Trust's
Portfolios. In connection with the Class IB shares offering, the existing
class of shares has been redesignated Class IA. The Class IB shares are
subject to distribution fees imposed under a distribution plan (the
"Distribution Plan") adopted pursuant to Rule 12b-1 under the 1940 Act. Under
the Trust's multiple class distribution system, both classes of shares have
identical voting, dividend, liquidation, and other rights, other than the
payment of distribution fees under the Distribution Plan.
Class IA shares 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 January 1, 1997, Equitable
Variable was merged into Equitable. Class IB shares are offered to an
insurance company separate account of Equitable. Effective March 12, 1997,
the Trust's Board of Trustees approved the establishment of the Alliance
Small Cap Growth Portfolio at an initial share value of $10. The Portfolio
commenced operations on May 1, 1997.
The investment objectives of each Portfolio are as follows:
Alliance 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.
Alliance 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.
Alliance Quality Bond Portfolio -- 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.
Alliance 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."
Alliance Growth and Income Portfolio -- High total return through a
combination of current income and capital appreciation by investing primarily
in income-producing common stocks and securities convertible into common
stocks.
Alliance 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.
Alliance 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.
71
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
Alliance 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.
Alliance 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.
Alliance 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.
Alliance Small Cap Growth Portfolio -- Long-term growth of capital. The
Portfolio pursues this objective by investing primarily in common stocks and
other equity-type securities issued by smaller-sized companies with strong
growth potential.
Alliance 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.
Alliance 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.
Alliance 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 quality debt securities known as "junk
bonds."
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.
72
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
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.
Except for the Alliance 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 Alliance 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.
Expenses attributable to a single Portfolio are charged to that Portfolio.
Expenses of the Trust are charged to each Portfolio in proportion to net
assets.
The Board of Trustees has approved the lending of portfolio securities,
through its 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, 1997, the value of
securities loaned and collateral received were as follows:
<TABLE>
<CAPTION>
VALUE OF VALUE OF
SECURITIES COLLATERAL
PORTFOLIO LOANED RECEIVED*
- -----------------------------------------------------------------------
<S> <C> <C>
Alliance Intermediate Government
Securities................................. $ 21,439,087 $ 22,219,089
Alliance Quality Bond ...................... 25,118,324 26,009,563
Alliance Growth and Income ................. 32,793,293 33,894,576
Alliance Equity Index ...................... 34,238,299 35,290,004
Alliance Common Stock ...................... 422,438,028 436,625,273
Alliance Global ............................ 113,468,335 120,706,863
Alliance International ..................... 19,911,281 21,721,648
Alliance Aggressive Stock .................. 488,604,672 493,848,504
Alliance Conservative Investors ............ 46,936,539 48,771,218
Alliance Balanced .......................... 196,678,203 205,206,975
Alliance Growth Investors .................. 178,270,621 186,272,612
</TABLE>
- ------------
* Including U.S. Government securities valued at $172,500, $411,760 and
$346,280 for the Alliance Equity Index, Alliance International and
Alliance Growth Investors Portfolios, respectively.
73
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
Chase invests the cash collateral and retains a portion of the interest
earned. During the six months ended June 30, 1997, the Alliance Intermediate
Government Securities, Alliance Quality Bond, Alliance Growth and Income,
Alliance Equity Index, Alliance Common Stock, Alliance Global, Alliance
International, Alliance Aggressive Stock, Alliance Conservative Investors,
Alliance Balanced and Alliance Growth Investors Portfolios received $10,458,
$24,955, $6,896, $4,665, $110,462, $156,806, $37,869, $836,236, $26,526,
$194,728, and $184,265, respectively, of security loan fees, net of rebates
paid. Such net fees are included in interest income in the accompanying
Statements of Operations.
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 at least 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 Alliance Money Market and Alliance 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
74
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
"marking-to-market" at the end of each trading day. Variation margin payments
on futures contracts are received or made, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and the Portfolio's basis in the
contract. Should interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the futures and forward contracts and may
incur a loss. The use of futures and forward contracts transactions involves
the risk of imperfect correlation in movements in the price of futures and
forward contracts, interest rates and the underlying hedged assets.
Limitations on Market and Credit Risk:
Written options, futures and forward contracts involve elements of both
market and credit risk in excess of the amounts reflected in the Statements
of Assets and Liabilities. The contract amounts of these written options,
futures and forward contracts reflect the extent of the Portfolio's exposure
to off-balance sheet risk. The Portfolio bears the market risk which arises
from any changes in security values. The credit risk for futures contracts is
limited to failure of the exchange or board of trade which acts as the
counterparty to the Portfolio's futures transactions. Forward contracts are
done directly with the counterparty and not through an exchange and can be
terminated only by agreement of both parties to the contract. There is no
daily margin settlement and the Portfolio is exposed to the risk of default
by the counterparty.
Statement of Position 93-2:
For the year ended December 31, 1996, 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>
ALLIANCE ALLIANCE
QUALITY ALLIANCE EQUITY ALLIANCE ALLIANCE
BOND HIGH YIELD INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ----------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Paid-in capital...................... $ -- $ -- $ (7,525) $ (988,124) $ (220,445)
Undistributed (overdistributed) net
investment income................... 42,229 449,873 (284,528) (8,723,430) 1,186,161
Accumulated net realized gain
(loss).............................. (42,229) (449,873) 292,053 9,711,554 (965,716)
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
ALLIANCE AGGRESSIVE CONSERVATIVE ALLIANCE GROWTH
INTERNATIONAL STOCK INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------ -------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Paid-in capital...................... $ -- $ -- $ -- $ -- $ --
Undistributed (overdistributed) net
investment income .................. 352,064 3,794 (8,654) (35,347) 842,896
Accumulated net realized gain
(loss).............................. (352,064) (3,794) 8,654 35,347 (842,896)
</TABLE>
75
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
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. Prior to May 1, 1997, the investment advisory fees were as follows:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS
--------------------------------------------------
FIRST NEXT OVER
$350 MILLION $400 MILLION $750 MILLION
---------------- ---------------- ----------------
<S> <C> <C> <C>
Alliance Common Stock, Alliance Money Market and Alliance Balanced
Portfolios.............................................................. .40% .375% .35%
Alliance Aggressive Stock and Alliance Intermediate Government
Securities Portfolios................................................... .50% .475% .45%
Alliance High Yield, Alliance Global, Alliance Conservative Investors
and Alliance Growth Investors Portfolios................................ .55% .525% .50%
FIRST NEXT OVER
$500 MILLION $500 MILLION $1 BILLION
---------------- ---------------- ----------------
Alliance Quality Bond and Alliance Growth and Income Portfolios ........ .55% .525% .50%
FIRST NEXT OVER
$750 MILLION $750 MILLION $1.5 BILLION
---------------- ---------------- ----------------
Alliance Equity Index Portfolio.......................................... .35% .30% .25%
FIRST NEXT OVER
$500 MILLION $1 BILLION $1.5 BILLION
---------------- ---------------- ----------------
Alliance International Portfolio......................................... .90% .85% .80%
</TABLE>
On December 13, 1996, the Trust's Board of Trustees approved a new
Investment Advisory Agreement with Alliance and subsequently extended the
agreement to the Alliance Small Cap Growth Portfolio on March 12, 1997. On
April 9, 1997, shareholders of each respective Portfolio, except for the
Alliance Small Cap Growth Portfolio which commenced operations on May 1,
1997, approved a new Investment Advisory Agreement. Effective May 1, 1997,
the advisory fees payable under this agreement are as follows:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS
----------------------------------------------------------------------
FIRST NEXT NEXT NEXT
$750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
-------------- -------------- ------------ -------------- ------------
PORTFOLIO
- ---------
<S> <C> <C> <C> <C> <C>
Alliance Money Market ...................... .350% .325% .300% .280% .270%
Alliance Intermediate Government
Securities................................. .500% .475% .450% .430% .420%
Alliance Quality Bond....................... .525% .500% .475% .455% .445%
Alliance High Yield......................... .600% .575% .550% .530% .520%
Alliance Growth and Income ................. .550% .525% .500% .480% .470%
Alliance Equity Index ...................... .325% .300% .275% .255% .245%
Alliance Common Stock ...................... .475% .425% .375% .355% .345%*
Alliance Global ............................ .675% .600% .550% .530% .520%
Alliance International ..................... .900% .825% .800% .780% .770%
Alliance Aggressive Stock .................. .625% .575% .525% .500% .475%
Alliance Small Cap Growth .................. .900% .850% .825% .800% .775%
Alliance Conservative Investors ............ .475% .425% .375% .350% .325%
Alliance Balanced .......................... .450% .400% .350% .325% .300%
Alliance Growth Investors .................. .550% .500% .450% .425% .400%
</TABLE>
- ------------
* On assets in excess of $10 billion, the management fee for the Alliance
Common Stock Portfolio is reduced to 0.335% of average daily net assets.
76
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
3. Distribution Plan
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act for the Class IB shares of the Trust.
Under the Plan, the Trust pays a distribution fee to Equitable Distributors,
Inc. ("Distributor"), an indirect, wholly-owned subsidiary of the Equitable,
at an annual rate of up to 0.50% of each Portfolio's average daily net assets
attributable to Class IB shares. The Trustees currently limit payments at an
annual rate equal to 0.25% of average daily net assets attributable to its
Class IB shares. In accordance with the Plan, payments are made for services
rendered to the Trust with respect to Class IB shares regardless of the level
of expenditures incurred by the Distributor. The Plan provides that the
Distributor will use such payments for services rendered and expenses borne
in connection with activities primarily intended to result in the sale of the
Trust's Class IB shares.
4. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the six months ended June 30, 1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------------------------- -------------------------------
STOCKS AND U.S. GOVERNMENT STOCKS AND U.S. GOVERNMENT
PORTFOLIO DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES
- ---------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Alliance Intermediate Government
Securities................................. $ -- $110,555,767 $ -- $ 97,493,021
Alliance Quality Bond....................... 97,277,326 214,082,744 95,963,557 198,001,341
Alliance High Yield......................... 680,250,724 -- 618,896,271 --
Alliance Growth and Income.................. 259,149,680 -- 136,421,942 --
Alliance Equity Index....................... 203,547,882 -- 11,115,512 --
Alliance Common Stock....................... 1,961,952,418 -- 1,510,333,514 --
Alliance Global ............................ 315,383,965 -- 252,910,268 --
Alliance International...................... 82,838,725 -- 39,196,873 --
Alliance Aggressive Stock................... 2,543,488,958 -- 2,133,138,931 --
Alliance Small Cap Growth *................. 10,518,569 -- 680,153 --
Alliance Conservative Investors............. 77,135,272 198,852,495 83,480,302 187,780,605
Alliance Balanced........................... 542,416,196 616,197,949 585,112,289 555,146,836
Alliance Growth Investors................... 552,300,427 364,722,901 503,144,267 318,111,132
</TABLE>
- ------------
* For the period from May 1, 1997 (commencement of operations) to June 30,
1997.
No activity is shown for the Alliance Money Market Portfolio since it
trades exclusively in short-term debt securities.
Transactions in options written for the six months ended June 30, 1997 are
summarized as follows:
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK
PORTFOLIO
--------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
----------- --------------
<S> <C> <C>
Options outstanding--January 1, 1997................ 161,200 $ 68,607,800
Options written..................................... 533,850 215,802,478
Options terminated in closing purchase
transactions....................................... (160,850) (80,692,100)
Options expired..................................... (25,650) (8,044,400)
Options exercised .................................. (251,600) (98,913,828)
----------- --------------
Options outstanding--June 30, 1997 ................. 256,950 $ 96,759,950
=========== ==============
</TABLE>
77
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
The Portfolios (except for the Alliance Money Market, Alliance
Intermediate Government Securities and Alliance Equity Index Portfolios) may
enter into forward currency contracts in order to hedge their exposure to
changes in foreign currency exchange rates on their 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, 1997, the Alliance Global, Alliance International,
Alliance Conservative Investors, Alliance Balanced and Alliance 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
ALLIANCE GLOBAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- -------------------------- ----------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/01/97................ 75 $ 124,973 $ 124,913 $ (60)
Finnish Markka, expiring 07/01/97................ 1,100 212,572 212,314 (258)
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring 09/22/97................ 49,716 30,128,351 29,318,433 809,918
French Franc, expiring 10/14/97.................. 140,000 24,787,374 24,305,134 482,240
Japanese Yen, expiring 07/14/97.................. 1,055,000 8,460,643 8,832,887 (372,244)
Netherlands Guilders, expiring
08/25/97-09/22/97............................... 74,865 40,348,174 39,242,467 1,105,707
Norwegian Krone, expiring 10/14/97............... 65,000 9,405,407 9,142,053 263,354
Spanish Peseta, expiring 10/14/97................ 3,600,000 25,293,173 24,860,162 433,011
Swedish Krona, expiring 10/14/97................. 100,000 12,893,227 12,920,898 (27,671)
----------
$2,693,997
==========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE INTERNATIONAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- --------------------------------- ---------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/01/97................ 50 $ 83,315 $ 83,275 $ (40)
Finnish Markka, expiring 07/01/97................ 550 106,286 106,157 (129)
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring 08/28/97-09/22/97 ...... 29,423 17,825,060 17,348,507 476,553
French Franc, expiring 10/14/97.................. 46,300 8,197,538 8,038,055 159,483
Japanese Yen, expiring 07/14/97.................. 204,800 1,642,407 1,714,668 (72,261)
Netherlands Guilders, expiring
08/25/97-09/22/97............................... 13,576 7,311,944 7,113,704 198,240
Norwegian Krone, expiring 10/14/97............... 20,100 2,908,441 2,827,004 81,437
Spanish Peseta, expiring 10/14/97................ 700,000 4,918,116 4,833,920 84,196
Swedish Krona, expiring 10/14/97................. 37,000 4,770,494 4,780,732 (10,238)
--------
$917,241
========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO: (000'S) DATE VALUE DEPRECIATION
- ------------------------------------------ ---------- ------------- --------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, expiring 07/01/97............ 6,300 $54,286 $54,626 $(340)
======
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
ALLIANCE BALANCED PORTFOLIO: (000'S) DATE VALUE APPRECIATION
- ---------------------------- ---------- ------------- ---------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, expiring
07/01/97....................... 31,498 $279,471 $277,150 $2,321
======
</TABLE>
78
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE GROWTH INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------ ---------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 07/02/97................ 134 $ 224,011 $ 223,589 $ (422)
Japanese Yen, expiring 07/02/97.................. 5,853 52,654 51,862 (792)
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollars, expiring 07/01/97-07/07/97 .. 127 90,028 92,945 (2,917)
Deutsche Marks, expiring 08/28/97-09/22/97 ...... 23,949 14,492,974 14,112,993 379,981
French Franc, expiring 10/14/97.................. 76,000 13,456,002 13,194,215 261,787
Italian Lire, expiring 07/01/97.................. 115,465 66,992 67,445 (453)
Japanese Yen, expiring 07/14/97.................. 366,700 2,940,775 3,070,161 (129,386)
Netherlands Guilders, expiring
08/25/97-09/22/97............................... 24,520 13,213,800 12,852,137 361,663
New Zealand Dollars, expiring 07/01/97-07/03/97 . 84 54,451 55,606 (1,155)
Norwegian Krone, expiring 07/01/97-10/14/97 ..... 20,004 2,894,440 2,813,419 81,021
Spanish Peseta, expiring 10/14/97................ 700,000 4,918,116 4,833,920 84,196
Swedish Krona, expiring 10/14/97................. 40,000 5,157,290 5,168,359 (11,069)
----------
$1,022,454
==========
</TABLE>
As of June 30, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED
COST OF ----------------------------- NET UNREALIZED
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION APPRECIATION
- --------- --------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Alliance Money Market........................ $ 455,780,064 $ 142,040 $ (36,888) $ 105,152
Alliance Intermediate Government Securities 102,447,147 591,387 (282,354) 309,033
Alliance Quality Bond ....................... 175,561,329 1,903,078 (201,707) 1,701,371
Alliance High Yield ......................... 261,423,380 7,809,955 (2,789,725) 5,020,230
Alliance Growth and Income .................. 355,230,738 56,363,683 (4,099,896) 52,263,787
Alliance Equity Index ....................... 515,164,980 156,526,037 (4,431,759) 152,094,278
Alliance Common Stock ....................... 5,914,974,872 2,406,314,521 (181,286,696) 2,225,027,825
Alliance Global ............................. 972,540,210 260,863,938 (54,155,914) 206,708,024
Alliance International ...................... 199,159,003 30,588,038 (13,429,672) 17,158,366
Alliance Aggressive Stock ................... 3,733,473,451 653,125,562 (126,705,543) 526,420,019
Alliance Small Cap Growth ................... 12,056,088 866,836 (61,375) 805,461
Alliance Conservative Investors ............. 265,687,430 22,570,085 (2,313,117) 20,256,968
Alliance Balanced ........................... 1,453,016,186 212,485,095 (16,574,316) 195,910,779
Alliance Growth Investors ................... 1,329,531,105 221,151,329 (30,107,161) 191,044,168
</TABLE>
During the year ended December 31, 1996, the Alliance Quality Bond,
Alliance High Yield and Alliance Growth and Income Portfolios utilized
available capital loss carryforwards of $395,138, $1,100,531 and $474,588,
respectively.
The Alliance Intermediate Government Securities Portfolio had net capital
loss carryforwards of $9,831,366 (of which $9,349,227 expires in the year
2002 and $482,139 expires in the year 2004) and the Alliance Quality Bond
Portfolio had net capital loss carryforwards of $4,993,809 which expires 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.
79
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
5. Capital Share Transactions
At June 30, 1997, 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 two classes, designated Class IA and Class
IB for each Portfolio.
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold......... 34,006,161 49,765,857 2,028,296 3,938,806
Shares issued in
reinvestment of
dividends and
distributions...... 1,030,436 1,878,824 295,011 496,768
--------------- -------------- --------------- --------------
Total shares
issued............. 35,036,597 51,644,681 2,323,307 4,435,574
Shares redeemed..... (37,463,177) (44,125,860) (744,003) (2,495,957)
--------------- -------------- --------------- --------------
Net increase
(decrease)......... (2,426,580) 7,518,821 1,579,304 1,939,617
=============== ============== =============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold......... 3,016,954 2,872,392 7,245,627 7,067,122
Shares issued in
reinvestment of
dividends and
distributions...... 541,325 1,135,383 1,059,575 2,737,878
--------------- -------------- --------------- --------------
Total shares
issued............. 3,558,279 4,007,775 8,305,202 9,805,000
Shares redeemed..... (1,031,074) (4,048,559) (1,430,873) (2,158,843)
--------------- -------------- --------------- --------------
Net increase
(decrease)......... 2,527,205 (40,784) 6,874,329 7,646,157
=============== ============== =============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GROWTH AND INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold......... 9,528,334 9,026,248 13,987,173 16,152,780
Shares issued in
reinvestment of
dividends and
distributions...... 164,018 1,157,520 240,742 1,372,168
--------------- -------------- --------------- --------------
Total shares
issued............. 9,692,352 10,183,768 14,227,915 17,524,948
Shares redeemed..... (517,357) (730,115) (2,520,971) (4,670,841)
--------------- -------------- --------------- --------------
Net increase........ 9,174,995 9,453,653 11,706,944 12,854,107
=============== ============== =============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold......... 29,696,216 43,446,898 6,874,786 15,536,853
Shares issued in
reinvestment of
dividends and
distributions...... 1,372,680 39,581,929 368,226 3,493,773
--------------- -------------- --------------- --------------
Total shares
issued............. 31,068,896 83,028,827 7,243,012 19,030,626
Shares redeemed..... (5,973,570) (15,634,826) (2,225,286) (3,682,913)
--------------- -------------- --------------- --------------
Net increase........ 25,095,326 67,394,001 5,017,726 15,347,713
=============== ============== =============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL AGGRESSIVE STOCK
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold............. 6,901,875 12,450,977 17,494,815 28,813,436
Shares issued in
reinvestment of
dividends and
distributions.......... 99,371 409,789 175,508 18,391,950
--------------- -------------- --------------- --------------
Total shares issued .... 7,001,246 12,860,766 17,670,323 47,205,386
Shares redeemed......... (2,712,776) (2,284,561) (10,702,083) (15,090,379)
--------------- -------------- --------------- --------------
Net increase
(decrease)............. 4,288,470 10,576,205 6,968,240 32,115,007
=============== ============== =============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
---------------- ------------------------------
MAY 1, 1997* SIX MONTHS YEAR ENDED
TO ENDED DECEMBER 31,
JUNE 30, 1997 JUNE 30, 1997 1996
---------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Class IA
- --------
Shares sold............. 927,420 1,260,859 4,420,391
Shares issued in
reinvestment of
dividends and
distributions.......... 141 517,258 1,758,154
---------------- --------------- --------------
Total shares issued .... 927,561 1,778,117 6,178,545
Shares redeemed......... (99,224) (2,132,389) (3,042,720)
---------------- --------------- --------------
Net increase
(decrease)............. 828,337 (354,272) 3,135,825
================ =============== ==============
</TABLE>
- ------------
* Commencement of operations.
80
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED GROWTH INVESTORS
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1997 1996 JUNE 30, 1997 1996
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold.................................... 1,846,411 3,826,284 5,999,779 17,024,570
Shares issued in reinvestment of dividends and
distributions................................. 1,569,077 11,161,085 866,521 9,635,249
--------------- -------------- --------------- --------------
Total shares issued............................ 3,415,488 14,987,369 6,866,300 26,659,819
Shares redeemed................................ (7,424,728) (7,431,615) (1,762,521) (1,643,924)
--------------- -------------- --------------- --------------
Net increase (decrease)........................ (4,009,240) 7,555,754 5,103,779 25,015,895
=============== ============== =============== ==============
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
--------------------------------- ---------------
SIX MONTHS OCTOBER 2, 1996* MAY 1, 1997*
ENDED TO TO
JUNE 30, 1997 DECEMBER 31, 1996 JUNE 30, 1997
--------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Class IB
- --------
Shares sold......... 3,172,568 353,450 27,065
Shares issued in
reinvestment of
dividends and
distributions...... 41,370 3,389 330
--------------- ----------------- ---------------
Total shares
issued............. 3,213,938 356,839 27,395
Shares redeemed..... (887,328) (43,566) --
--------------- ----------------- ---------------
Net increase........ 2,326,610 313,273 27,395
=============== ================= ===============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
HIGH YIELD GROWTH AND INCOME
PORTFOLIO PORTFOLIO
-------------------------------- -----------------
MAY 1, 1997* OCTOBER 2, 1996* MAY 1, 1997*
TO TO TO
JUNE, 30, 1997 DECEMBER 31, 1996 JUNE 30, 1997
-------------- ----------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Class IB
- --------
Shares sold......... 1,255,771 64,659 190,885
Shares issued in
reinvestment of
dividends and
distributions...... 36,482 3,757 516
-------------- ----------------- -----------------
Total shares
issued............. 1,292,253 68,416 191,401
Shares redeemed..... (16,207) -- --
-------------- ----------------- -----------------
Net increase........ 1,276,046 68,416 191,401
============== ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK
PORTFOLIO PORTFOLIO
--------------- ---------------------------------
MAY 1, 1997* SIX MONTHS OCTOBER 2, 1996*
TO ENDED TO
JUNE 30, 1997 JUNE 30, 1997 DECEMBER 31, 1996
--------------- --------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Class IB
- --------
Shares sold......... 3,464 2,769,157 64,063
Shares issued in
reinvestment of
dividends and
distributions...... 5 5,069 4,203
--------------- --------------- -----------------
Total shares
issued............. 3,469 2,774,226 68,266
Shares redeemed..... -- (3,008) --
--------------- --------------- -----------------
Net increase........ 3,469 2,771,218 68,266
=============== =============== =================
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO
-------------------------------- ---------------
SIX MONTHS OCTOBER 2, 1996* MAY 1, 1997*
ENDED TO TO
JUNE, 30, 1997 DECEMBER 31, 1996 JUNE 30, 1997
-------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
Class IB
- --------
Shares sold......... 772,092 16,657 32,044
Shares issued in
reinvestment of
dividends and
distributions...... 3,042 486 101
-------------- ----------------- ---------------
Total shares
issued............. 775,134 17,143 32,145
Shares redeemed..... (12,764) -- --
-------------- ----------------- ---------------
Net increase........ 762,370 17,143 32,145
============== ================= ===============
</TABLE>
- ------------
* Commencement of operations.
81
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1997
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE CONSERVATIVE
AGGRESSIVE STOCK SMALL CAP GROWTH INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------- ---------------- --------------
SIX MONTHS OCTOBER 2, 1996* MAY 1, 1997* MAY 1, 1997*
ENDED TO TO TO
JUNE 30, 1997 DECEMBER 31, 1996 JUNE 30, 1997 JUNE, 30, 1997
--------------- ----------------- ---------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold......... 645,804 16,059 214,907 18,368
Shares issued in
reinvestment of
dividends and
distributions...... 251 1,035 18 177
--------------- ----------------- ---------------- --------------
Total shares
issued............. 646,055 17,094 214,925 18,545
Shares redeemed..... (4,565) -- (1,079) --
--------------- ----------------- ---------------- --------------
Net increase........ 641,490 17,094 213,846 18,545
=============== ================= ================ ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ALLIANCE
GROWTH INVESTORS
PORTFOLIO
---------------------------------
SIX MONTHS OCTOBER 2, 1996*
ENDED TO
JUNE 30, 1997 DECEMBER 31, 1996
--------------- -----------------
(UNAUDITED)
<S> <C> <C>
Class IB
- --------
Shares sold......... 947,060 26,902
Shares issued in
reinvestment of
dividends and
distributions...... 6,979 571
--------------- -----------------
Total shares
issued............. 954,039 27,473
Shares redeemed..... (7,368) (5)
--------------- -----------------
Net increase........ 946,671 27,468
=============== =================
</TABLE>
- ------------
* Commencement of operations.
6. Transactions with Affiliated Companies
An affiliated company is a company in which a Portfolio has ownership of
at least 5% of the voting securities. Investments in companies which were
affiliates during the six months period ended June 30, 1997 are summarized as
follows:
<TABLE>
<CAPTION>
MARKET VALUE MARKET VALUE
DECEMBER 31, PURCHASES SALES JUNE 30,
1996 AT COST AT COST 1997
-------------- ------------ ------------- --------------
ALLIANCE COMMON STOCK PORTFOLIO:
- --------------------------------
<S> <C> <C> <C> <C>
CBL & Associates Properties, Inc. (a) . $ 27,872,550 $ -- $ -- $ 25,852,800
Ceridian Corp.......................... 148,432,500 5,701,500 -- 161,183,750
Chris Craft Industries, Inc. (Class
B).................................... 49,849,843 -- -- 59,162,027
CompUSA, Inc. ......................... 65,331,750 60,013,001 54,770,499 87,883,400
Regency Realty Corp.................... 16,372,125 -- 1,347,499 15,088,325
Teleport Communications Group, Inc.
(Class A)............................. -- 74,519,905 -- 86,250,938
-------------- --------------
$307,858,768 $ 435,421,240
============== ==============
<PAGE>
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
- ------------------------------------
Aames Financial Corp. ................. $ 39,907,350 $ -- $42,877,524 $ --
AK Steel Holding Corp. ................ 52,554,637 51,499,016 7,280,819 109,615,325
Continental Airlines, Inc. (Class B) .. 47,587,125 42,986,554 -- 109,239,081
Crompton & Knowles Corp................ 65,534,700 34,325,930 -- 116,545,500
Circuit City Stores, Inc.-CarMax
Group................................. -- 83,376,011 -- 62,325,213
DT Industries, Inc. ................... 20,366,500 22,230,101 42,269,251 --
Evergreen Media Corp.(Class A)......... 62,782,500 26,261,011 5,549,955 144,785,813
Harman International Industries, Inc. . 83,281,750 9,648,504 6,559,066 66,688,088
National Steel Corp. .................. -- 15,419,034 -- 18,196,169
Nine West Group, Inc................... 144,356,100 16,698,838 45,216,982 77,871,950
Mohawk Industries, Inc. ............... 27,068,800 16,313,237 -- 44,487,625
Polymer Group, Inc..................... 36,167,575 -- -- 40,870,425
Suburban Lodges of America............. 15,078,400 -- -- 19,790,400
Telephone & Data Systems, Inc. (a) .... 104,508,750 18,799,441 68,929,336 77,771,875
Ultramar Diamond Shamrock Corp. ...... 132,338,671 12,303,736 11,091,425 137,094,230
Xtra Corp.............................. 59,701,350 13,514,957 11,801,170 64,047,694
-------------- --------------
$891,234,208 $1,089,329,388
============== ==============
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
REALIZED
DIVIDEND GAIN
INCOME (LOSS)
------------ ---------------
ALLIANCE COMMON STOCK PORTFOLIO:
- --------------------------------
<S> <C> <C>
CBL & Associates Properties, Inc. (a) . $476,661 $ --
Ceridian Corp.......................... -- --
Chris Craft Industries, Inc. (Class
B).................................... -- --
CompUSA, Inc. ......................... -- (11,053,111)
Regency Realty Corp.................... 509,208 470,024
Teleport Communications Group, Inc.
(Class A)............................. -- --
------------ ---------------
$ 985,869 $(10,583,087)
============ ===============
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
- ------------------------------------
Aames Financial Corp. ................. $ 48,335 $ (9,329,592)
AK Steel Holding Corp. ................ 889,840 453,240
Continental Airlines, Inc. (Class B) .. -- --
Crompton & Knowles Corp................ 261,900 --
Circuit City Stores, Inc.-CarMax
Group................................. -- --
DT Industries, Inc. ................... 29,924 (3,199,546)
Evergreen Media Corp.(Class A)......... -- 2,210,666
Harman International Industries, Inc. . 160,450 (1,095,934)
National Steel Corp. .................. -- --
Nine West Group, Inc................... 14,556,175
Mohawk Industries, Inc. ............... -- --
Polymer Group, Inc..................... -- --
Suburban Lodges of America............. -- --
Telephone & Data Systems, Inc. (a) .... 115,962 (3,633,068)
Ultramar Diamond Shamrock Corp. ...... 2,400,900 249,977
Xtra Corp.............................. 614,880 (823,094)
------------ ---------------
$4,522,191 $ (611,176)
============ ===============
</TABLE>
- ------------
(a) Holdings represented less than 5% of outstanding shares at June 30,
1997, although ownership was above 5% for a period of time during the
period.
82
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
June 30, 1997
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(C)
ALLIANCE MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ... $10.17 $10.16 $10.14 $10.12 $10.11 $10.13
------------ ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.27 0.54 0.57 0.41 0.30 0.37
Net realized and unrealized gain (loss) on
investments............................... -- (0.01) -- -- -- (0.01)
------------ ---------- ---------- ---------- ---------- ----------
Total from investment operations........... 0.27 0.53 0.57 0.41 0.30 0.36
------------ ---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS:
Dividends from net investment income ...... (0.26) (0.52) (0.55) (0.39) (0.29) (0.38)
Dividends in excess of net investment
income.................................... -- -- -- -- -- --
------------ ---------- ---------- ---------- ---------- ----------
Total dividends............................ (0.26) (0.52) (0.55) (0.39) (0.29) (0.38)
------------ ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............. $10.18 $10.17 $10.16 $10.14 $10.12 $10.11
============ ========== ========== ========== ========== ==========
Total return (d)............................ 2.63% 5.33% 5.74% 4.02% 3.00% 3.57%
============ ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $439,095 $463,422 $386,691 $325,391 $248,460 $268,584
Ratio of expenses to average net assets .... 0.41%(b) 0.43% 0.44% 0.42% 0.42% 0.43%
Ratio of net investment income to average
net assets................................. 5.27%(b) 5.17% 5.53% 4.01% 2.91% 3.63%
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
---------------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------ --------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) $10.16 $10.16
------------ --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.25 0.11
Net realized and unrealized gain (loss) on
investments............................... 0.01 0.01
------------ --------------
Total from investment operations........... 0.26 0.12
------------ --------------
LESS DIVIDENDS:
Dividends from net investment income ...... (0.25) (0.02)
Dividends in excess of net investment
income.................................... -- (0.10)
------------ --------------
Total dividends............................ (0.25) (0.12)
------------ --------------
Net asset value, end of period ............. $ 10.17 $10.16
============ ==============
Total return (d)............................ 2.50% 1.29%
============ ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $26,837 $3,184
Ratio of expenses to average net assets .... 0.65%(b) 0.67%(b)
Ratio of net investment income to average
net assets................................. 5.02%(b) 4.94%(b)
</TABLE>
<PAGE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(E):
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ... $ 9.29 $ 9.47 $ 8.87 $10.08 $10.53 $10.73
------------ --------- --------- --------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.27 0.54 0.58 0.65 0.59 0.60
Net realized and unrealized gain (loss) on
investments............................... (0.03) (0.19) 0.57 (1.08) 0.51 (0.02)
------------ --------- --------- --------- ---------- ----------
Total from investment operations .......... 0.24 0.35 1.15 (0.43) 1.10 0.58
------------ --------- --------- --------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.26) (0.53) (0.55) (0.78) (0.68) (0.60)
Distributions from realized gains.......... -- -- -- -- (0.87) (0.18)
------------ --------- --------- --------- ---------- ----------
Total dividends and distributions ........ (0.26) (0.53) (0.55) (0.78) (1.55) (0.78)
------------ --------- --------- --------- ---------- ----------
Net asset value, end of period.............. $ 9.27 $ 9.29 $ 9.47 $ 8.87 $10.08 $10.53
============ ========= ========= ========= ========== ==========
Total return (d)............................ 2.70% 3.78% 13.33% (4.37)% 10.58% 5.53%
============ ========= ========= ========= ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $102,904 $88,384 $71,780 $48,518 $158,511 $293,587
Ratio of expenses to average net assets .... 0.54%(b) 0.56% 0.57% 0.56% 0.53% 0.52%
Ratio of net investment income to average
net assets................................. 5.85%(b) 5.73% 6.15% 6.75% 5.43% 5.63%
Portfolio turnover rate..................... 110% 318% 255% 133% 254% 316%
</TABLE>
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
<TABLE>
<CAPTION>
CLASS IB
---------------
MAY 1, 1997
TO
JUNE 30, 1997
---------------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period (a) ... $ 9.27
---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.08
Net realized and unrealized gain (loss) on
investments............................... 0.05
---------------
Total from investment operations .......... 0.13
---------------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.13)
Distributions from realized gains.......... --
---------------
Total dividends and distributions ........ (0.13)
---------------
Net asset value, end of period.............. $ 9.27
===============
Total return (d)............................ 1.43%
===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $254
Ratio of expenses to average net assets .... 0.79%(b)
Ratio of net investment income to average
net assets................................. 5.63%(b)
Portfolio turnover rate..................... 110%
</TABLE>
B-83
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, OCTOBER 1, 1993
JUNE 30, -------------------------------- TO
1997 1996 1995 1994 DECEMBER 31, 1993
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a)...... $9.49 $ 9.61 $ 8.72 $ 9.82 $10.00
------------ ---------- ---------- ---------- -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income........................ 0.30 0.57 0.57 0.66 0.11
Net realized and unrealized gain (loss) on
Investments and foreign currency
transactions................................. 0.01 (0.07) 0.88 (1.16) (0.16)
------------ ---------- ---------- ---------- -----------------
Total from investment operations............. 0.31 0.50 1.45 (0.50) (0.05)
------------ ---------- ---------- ---------- -----------------
LESS DISTRIBUTIONS:
Dividends from net investment income......... (0.28) (0.60) (0.56) (0.55) (0.12)
Dividends in excess of net investment income. -- (0.02) -- -- --
Distributions in excess of realized gains.... -- -- -- -- (0.01)
Tax return of capital distributions.......... -- -- -- (0.05) --
------------ ---------- ---------- ---------- -----------------
Total dividends and distributions............ (0.28) (0.62) (0.56) (0.60) (0.13)
------------ ---------- ---------- ---------- -----------------
Net asset value, end of period ............... $9.52 $ 9.49 $ 9.61 $ 8.72 $ 9.82
============ ========== ========== ========== =================
Total return (d).............................. 3.38% 5.36% 17.02% (5.10)% (0.51)%
============ ========== ========== ========== =================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)............. $179,613 $155,023 $157,443 $127,575 $104,832
Ratio of expenses to average net assets....... 0.58%(b) 0.59% 0.59% 0.59% 0.69%(b)
Ratio of net investment income to average net
assets....................................... 6.36%(b) 6.06% 6.13% 7.17% 4.62%(b)
Portfolio turnover rate....................... 188% 431% 411% 222% 77%
</TABLE>
ALLIANCE HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ... $10.02 $ 9.64 $ 8.91 $10.08 $ 9.15 $ 8.96
------------ ---------- ---------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.47 1.02 0.98 0.89 0.94 0.89
Net realized and unrealized gain (loss) on
investments............................... 0.38 1.07 0.73 (1.17) 1.10 0.19
------------ ---------- ---------- --------- --------- ---------
Total from investment operations........... 0.85 2.09 1.71 (0.28) 2.04 1.08
------------ ---------- ---------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.44) (0.98) (0.94) (0.88) (0.92) (0.89)
Dividends in excess of net investment
income.................................... -- (0.03) (0.04) (0.01) -- --
Distributions from realized gains.......... -- (0.70) -- -- (0.19) --
Distributions in excess of realized gains . -- -- -- -- -- --
------------ ---------- ---------- --------- --------- ---------
Total dividends and distributions.......... (0.44) (1.71) (0.98) (0.89) (1.11) (0.89)
------------ ---------- ---------- --------- --------- ---------
Net asset value, end of period ............. $10.43 $10.02 $ 9.64 $8.91 $10.08 $ 9.15
============ ========== ========== ========= ========= =========
Total return (d)............................ 8.59% 22.89% 19.92% (2.79)% 23.15% 12.31%
============ ========== ========== ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $279,193 $199,360 $118,129 $73,895 $67,169 $47,687
Ratio of expenses to average net assets .... 0.59%(b) 0.59% 0.60% 0.61% 0.63% 0.60%
Ratio of net investment income to average
net assets................................. 9.33%(b) 9.93% 10.34% 9.23% 9.52% 9.58%
Portfolio turnover rate..................... 272% 485% 350% 248% 280% 177%
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
---------------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------ --------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) $10.01 $10.25
------------ --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.46 0.19
Net realized and unrealized gain (loss) on
investments............................... 0.37 0.15
------------ --------------
Total from investment operations........... 0.83 0.34
------------ --------------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.43) (0.03)
Dividends in excess of net investment
income.................................... -- (0.25)
Distributions from realized gains.......... -- (0.01)
Distributions in excess of realized gains . -- (0.29)
------------ --------------
Total dividends and distributions.......... (0.43) (0.58)
------------ --------------
Net asset value, end of period ............. $ 10.41 $10.01
============ ==============
Total return (d)............................ 8.45% 3.32%
============ ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)........... $14,002 $685
Ratio of expenses to average net assets .... 0.86%(b) 0.82%(b)
Ratio of net investment income to average
net assets................................. 9.03%(b) 8.71%(b)
Portfolio turnover rate..................... 272% 485%
</TABLE>
84
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
--------------------------------------------------------------- --------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, OCTOBER 1, 1993 MAY 1, 1997
JUNE 30, -------------------------------- TO TO
1997 1996 1995 1994 DECEMBER 31, 1993 JUNE 30, 1997
------------ ---------- ---------- ---------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................. $13.01 $11.70 $ 9.70 $ 9.95 $10.00 $13.42
------------ ---------- --------- --------- ----------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............... 0.10 0.24 0.33 0.31 0.03 0.04
Net realized and unrealized gain
(loss) on investments ............... 1.73 2.05 1.97 (0.36) (0.06) 1.32
------------ ---------- --------- --------- ----------------- ---------------
Total from investment operations .... 1.83 2.29 2.30 (0.05) (0.03) 1.36
------------ ---------- --------- --------- ----------------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.10) (0.23) (0.30) (0.20) (0.02) (0.04)
Dividends in excess of net investment
income .............................. -- -- -- -- (0.00) --
Distributions from realized gains .... -- (0.75) -- -- -- --
Tax return of capital distributions . -- -- -- -- (0.00) --
------------ ---------- --------- --------- ----------------- ---------------
Total dividends and distributions ... (0.10) (0.98) (0.30) (0.20) (0.02) (0.04)
------------ ---------- --------- --------- ----------------- ---------------
Net asset value, end of period ....... $14.74 $13.01 $11.70 $ 9.70 $ 9.95 $14.74
============ ========== ========= ========= ================= ===============
Total return (d) ..................... 14.06% 20.09% 24.07% (0.58)% (0.25)% 10.16%
============ ========== ========= ========= ================= ===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .... $398,171 $232,080 $98,053 $31,522 $1,456 $2,821
Ratio of expenses to average net
assets ............................... 0.57%(b) 0.58% 0.60% 0.78% 2.70%(b) 0.82%(b)
Ratio of net investment income to
average net asset ................... 1.53%(b) 1.94% 3.11% 3.13% 1.12%(b) 1.88%(b)
Portfolio turnover rate .............. 46% 88% 65% 52% 48% 46%
Average commission rate paid (f) ...... $0.0574 $0.0604 -- -- -- $0.0574
</TABLE>
ALLIANCE EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
-------------------------------------------------------- --------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, MARCH 1, 1994 MAY 1, 1997
JUNE 30, ------------------------ TO TO
1997 1996 1995 DECEMBER 31, 1994 JUNE 30, 1997
------------ ---------- ---------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a) ................................. $15.16 $13.13 $ 9.87 $10.00 $16.35
------------ ---------- ---------- ----------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............... 0.13 0.27 0.26 0.20 0.02
Net realized and unrealized gain
(loss) on investments ............. 2.93 2.65 3.32 (0.09) 1.79
------------ ---------- ---------- ----------------- ---------------
Total from investment operations..... 3.06 2.92 3.58 0.11 1.81
------------ ---------- ---------- ----------------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.12) (0.25) (0.22) (0.20) (0.06)
Distributions from realized gains ... -- (0.64) (0.09) (0.03) --
Distributions in excess of realized
gains ............................. -- -- (0.01) (0.01) --
------------ ---------- ---------- ----------------- ---------------
Total dividends and distributions ... (0.12) (0.89) (0.32) (0.24) (0.06)
------------ ---------- ---------- ----------------- ---------------
Net asset value, end of period ....... $18.10 $15.16 $13.13 $ 9.87 $18.10
============ ========== ========== ================= ===============
Total return (d) ..................... 20.27% 22.39% 36.48% 1.08% 11.06%
============ ========== ========== ================= ===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .... $673,154 $386,249 $165,785 $36,748 $63
Ratio of expenses to average net
assets .............................. 0.37%(b) 0.39% 0.48% 0.49%(b) 0.60%(b)
Ratio of net investment income to
average net assets .................. 1.60%(b) 1.91% 2.16% 2.42%(b) 1.11%(b)
Portfolio turnover rate .............. 2% 15% 9% 7% 2%
Average commission rate paid (f) ...... $0.0299 $0.0306 -- -- $0.0299
</TABLE>
86
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) . $ 18.23 $ 16.48 $ 13.36 $ 14.65 $ 13.49 $ 14.18
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.07 0.15 0.20 0.20 0.23 0.24
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ........................... 2.41 3.73 4.12 (0.51) 3.10 0.20
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations......... 2.48 3.88 4.32 (0.31) 3.33 0.44
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.07) (0.15) (0.20) (0.19) (0.23) (0.24)
Dividends in excess of net investment
income ................................. -- -- (0.02) (0.01) (0.00) --
Distributions from realized gains........ -- (1.76) (0.95) (0.77) (1.94) (0.89)
Distributions in excess of realized gains -- (0.22) (0.03) -- -- --
Tax return of capital distributions ..... -- -- -- (0.01) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total dividends and distributions........ (0.07) (2.13) (1.20) (0.98) (2.17) (1.13)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 20.64 $ 18.23 $ 16.48 $ 13.36 $ 14.65 $ 13.49
========== ========== ========== ========== ========== ==========
Total return (d)........................... 13.63% 24.28% 32.45% (2.14)% 24.84% 3.22%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)......... $8,019,643 $6,625,390 $4,879,677 $3,466,245 $3,125,128 $2,307,292
Ratio of expenses to average net assets ... 0.38%(b) 0.38% 0.38% 0.38% 0.38% 0.38%
Ratio of net investment income to average
net assets............................... 0.74%(b) 0.85% 1.27% 1.40% 1.55% 1.73%
Portfolio turnover rate ................... 22% 55% 61% 52% 82% 71%
Average commission rate paid (f) .......... $0.0553 $0.0565 -- -- -- --
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
-----------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------ -----------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) . $ 18.22 $17.90
---------- ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.05 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ........................... 2.40 1.52
---------- ------------
Total from investment operations......... 2.45 1.54
---------- ------------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.06) (0.00 )
Dividends in excess of net investment
income ................................. -- (0.03 )
Distributions from realized gains........ -- (0.16 )
Distributions in excess of realized gains -- (1.03 )
Tax return of capital distributions ..... -- --
---------- ------------
Total dividends and distributions........ (0.06) (1.22 )
---------- ------------
Net asset value, end of period ............ $ 20.61 $18.22
========== ============
Total return (d)........................... 13.49% 8.49 %
========== ============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $58,527 $1,244
Ratio of expenses to average net assets ... 0.64%(b) 0.63 %(b)
Ratio of net investment income to average
net assets............................... 0.55%(b) 0.61 %(b)
Portfolio turnover rate ................... 22% 55 %
Average commission rate paid (f) .......... $0.0553 $0.0565
</TABLE>
86
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ... $ 16.92 $ 15.74 $13.87 $13.62 $11.41 $11.64
------------ ------------- ---------- ---------- ---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.11 0.21 0.26 0.20 0.08 0.14
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.............................. 1.56 2.05 2.32 0.52 3.58 (0.20)
------------ ------------- ---------- ---------- ---------- ---------
Total from investment operations........... 1.67 2.26 2.58 0.72 3.66 (0.06)
------------ ------------- ---------- ---------- ---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.10) (0.21) (0.25) (0.17) (0.15) (0.11)
Dividends in excess of net investment
income.................................... -- (0.08) -- -- -- --
Distributions from realized gains ........ -- (0.79) (0.42) (0.28) (1.30) (0.06)
Distributions in excess of realized gains -- -- (0.03) (0.00) (0.00) --
Tax return of capital distributions ...... -- (0.00) (0.01) (0.02) -- --
------------ ------------- ---------- ---------- ---------- ---------
Total dividends and distributions ........ (0.10) (1.08) (0.71) (0.47) (1.45) (0.17)
------------ ------------- ---------- ---------- ---------- ---------
Net asset value, end of period.............. $ 18.49 $ 16.92 $15.74 $13.87 $13.62 $11.41
============ ============= ========== ========== ========== =========
Total return (d) ........................... 9.93% 14.60% 18.81% 5.23% 32.09% (0.50)%
============ ============= ========== ========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $1,182,402 $997,041 $686,140 $421,698 $141,257 $49,171
Ratio of expenses to average net assets ... 0.64%(b) 0.60% 0.61% 0.69% 0.84% 0.70%
Ratio of net investment income to average
net assets ................................ 1.24%(b) 1.28% 1.76% 1.41% 0.62% 1.20%
Portfolio turnover rate .................... 27% 59% 67% 71% 150% 216%
Average commission rate paid (f)............ $0.0353 $0.0418 -- -- -- --
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
---------------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------ --------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) ... $ 16.91 $ 16.57
------------ --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.10 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.............................. 1.55 0.81
------------ --------------
Total from investment operations........... 1.65 0.83
------------ --------------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.09) --
Dividends in excess of net investment
income.................................... -- (0.11)
Distributions from realized gains ........ -- (0.10)
Distributions in excess of realized gains -- (0.28)
Tax return of capital distributions ...... -- (0.00)
------------ --------------
Total dividends and distributions ........ (0.09) (0.49)
------------ --------------
Net asset value, end of period.............. $ 18.47 $ 16.91
============ ==============
Total return (d) ........................... 9.79% 4.98%
============ ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $14,397 $ 290
Ratio of expenses to average net assets ... 0.92%(b) 0.86%(b)
Ratio of net investment income to average
net assets ................................ 1.17%(b) 0.48%(b)
Portfolio turnover rate .................... 27% 59%
Average commission rate paid (f)............ $0.0353 $0.0418
</TABLE>
<PAGE>
ALLIANCE INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
--------------------------------------------------- ---------------
SIX MONTHS APRIL 3, 1995 MAY 1, 1997
ENDED YEAR ENDED TO TO
JUNE 30, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995 JUNE 30, 1997
--------------- ----------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ... $11.50 $10.87 $10.00 $11.39
--------------- ----------------- ----------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.08 0.13 0.14 0.03
Net realized and unrealized gain on
investments ............................. 1.03 0.94 0.98 1.16
--------------- ----------------- ----------------- ---------------
Total from investment operations........... 1.11 1.07 1.12 1.19
--------------- ----------------- ----------------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... (0.07) (0.10) (0.07) (0.04)
Dividends in excess of net investment
income .................................. -- (0.09) (0.13) --
Distributions from realized gains ......... -- (0.25) (0.05) --
--------------- ----------------- ----------------- ---------------
Total dividends and distributions ......... (0.07) (0.44) (0.25) (0.04)
--------------- ----------------- ----------------- ---------------
Net asset value, end of period ............. $12.54 $11.50 $10.87 $12.54
=============== ================= ================= ===============
Total return (d) ........................... 9.76% 9.82% 11.29% 10.40%
=============== ================= ================= ===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .......... $219,541 $151,907 $28,684 $403
Ratio of expenses to average net assets .... 1.04%(b) 1.06% 1.03%(b) 1.25%(b)
Ratio of net investment income to average
net assets ................................ 1.34%(b) 1.10% 1.71%(b) 1.46%(b)
Portfolio turnover rate ..................... 26% 48% 56% 26%
Average commission rate paid (f) ............ $0.0252 $0.0251 -- $0.0252
</TABLE>
87
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a).................................... $35.85 $ 35.68 $ 30.63 $31.89 $ 29.81 $ 33.82
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.06 0.09 0.10 0.04 0.09 0.17
Net realized and unrealized gain
(loss) on investments ................ 1.18 7.52 9.54 (1.26) 4.91 (1.25)
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations ..... 1.24 7.61 9.64 (1.22) 5.00 (1.08)
------------ ------------ ------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.06) (0.09) (0.10) (0.04) (0.09) (0.18)
Dividends in excess of net investment
income................................. -- (0.00) -- -- -- --
Distributions from realized gains .... -- (7.33) (4.49) -- (2.75) (2.75)
Distributions in excess of realized
gains ................................ -- (0.02) -- -- (0.07) --
Tax return of capital distributions ... -- -- -- (0.00) (0.01) --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and distributions. .... (0.06) (7.44) (4.59) (0.04) (2.92) (2.93)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period ......... $37.03 $ 35.85 $ 35.68 $ 30.63 $ 31.89 $ 29.81
============ ============ ============ ============ ============ ============
Total return (d)........................ 3.45% 22.20% 31.63% (3.81)% 16.77% (3.16)%
============ ============ ============ ============ ============ ============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $4,250,363 $3,865,256 $2,700,515 $1,832,164 $1,557,332 $1,210,576
Ratio of expenses to average net assets 0.51%(b) 0.48% 0.49% 0.49% 0.49% 0.50%
Ratio of net investment income (loss)
to average net assets ................. 0.31%(b) 0.24% 0.28% 0.12% 0.28% 0.57%
Portfolio turnover rate ................ 56% 108% 127% 92% 89% 68%
Average commission rate paid (f) ...... $0.0551 $0.0263 -- -- -- --
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
---------------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------- --------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period
(a).................................... $ 35.83 $ 37.28
------------ --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. (0.01) (0.01)
Net realized and unrealized gain
(loss) on investments ................ 1.20 0.85
------------ --------------
Total from investment operations ..... 1.19 0.84
------------ --------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03) --
Dividends in excess of net investment
income................................. -- (0.02)
Distributions from realized gains .... -- (0.23)
Distributions in excess of realized
gains ................................ -- (2.04)
Tax return of capital distributions ... -- --
------------ --------------
Total dividends and distributions. .... (0.03) (2.29)
------------ --------------
Net asset value, end of period ......... $ 36.99 $ 35.83
============ ==============
Total return (d)........................ 3.32% 2.32%
============ ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $24,363 $ 613
Ratio of expenses to average net assets 0.78%(b) 0.73%(b)
Ratio of net investment income (loss)
to average net assets ................. (0.05)%(b) (0.10)%(b)
Portfolio turnover rate ................ 56% 108%
Average commission rate paid (f) ...... $0.0551 $0.0263
</TABLE>
<PAGE>
ALLIANCE SMALL CAP GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
--------------- ---------------
MAY 1, 1997 MAY 1, 1997
TO TO
JUNE 30, 1997 JUNE 30, 1997
--------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a)............. $10.00 $10.00
--------------- ---------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................... 0.00 0.00
Net realized and unrealized gain on investments .... 1.74 1.74
--------------- ---------------
Total from investment operations.................... 1.74 1.74
--------------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.00) (0.00)
Distributions from realized gains................... -- --
--------------- ---------------
Total dividends and distributions................... (0.00) (0.00)
--------------- ---------------
Net asset value, end of period....................... $11.74 $11.74
=============== ===============
Total return (d)..................................... 17.43% 17.39%
=============== ===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).................... $9,726 $2,510
Ratio of expenses to average net assets.............. 1.09%(b) 1.24%(b)
Ratio of net investment income to average net
assets.............................................. 0.23%(b) 0.02%(b)
Portfolio turnover rate.............................. 9% 9%
Average commission rate paid......................... $0.0499 $0.0499
</TABLE>
88
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
-------------------------------------------------------------------- ----------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31, MAY 1, 1997
JUNE 30, ---------------------------------------------- TO
1997 1996 1995 1994 1993* 1992 JUNE 30, 1997
------------ ----------- ---------- ---------- ---------- ---------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (a) ..................... $11.29 $ 11.52 $ 10.15 $ 11.12 $ 10.94 $ 11.29 $11.29
------------ ----------- ---------- ---------- ---------- --------- ---------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .......... 0.25 0.50 0.60 0.55 0.52 0.64 0.08
Net realized and unrealized gain
(loss) on investments.......... 0.44 0.07 1.43 (1.00) 0.65 (0.01) 0.49
------------ ----------- ---------- ---------- ---------- --------- ---------------
Total from investment
operations...................... 0.69 0.57 2.03 (0.45) 1.17 0.63 0.57
------------ ----------- ---------- ---------- ---------- --------- ---------------
LESS DISTRIBUTIONS:
Dividends from net investment
income ......................... (0.24) (0.51) (0.59) (0.52) (0.50) (0.62) (0.12)
Dividends in excess of net
investment income............... -- -- -- -- (0.00) -- --
Distributions from realized
gains .......................... -- (0.27) (0.07) -- (0.49) (0.36) --
Distributions in excess of
realized gains.................. -- (0.02) -- -- -- -- --
------------ ----------- ---------- ---------- ---------- --------- ---------------
Total dividends and
distributions................... (0.24) (0.80) (0.66) (0.52) (0.99) (0.98) (0.12)
------------ ----------- ---------- ---------- ---------- --------- ---------------
Net asset value, end of period... $11.74 $ 11.29 $ 11.52 $ 10.15 $ 11.12 $ 10.94 $11.74
============ =========== ========== ========== ========== ========= ===============
Total return (d) ................ 6.24% 5.21% 20.40% (4.10)% 10.76% 5.64 % 5.04%
============ =========== ========== ========== ========== ========= ===============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)......................... $289,617 $282,402 $252,101 $173,691 $114,418 $70,675 $218
Ratio of expenses to average net
assets ......................... 0.59%(b) 0.61% 0.59% 0.59% 0.60% 0.61% 0.77%(b)
Ratio of net investment income to
average net assets ............. 4.31%(b) 4.48% 5.48% 5.22% 4.49% 5.77% 4.12%(b)
Portfolio turnover rate ......... 106% 181% 287% 228% 178% 136% 106%
$0.0308
Average commission rate paid (f) $0.0308 $ 0.0488 -- -- -- --
</TABLE>
<PAGE>
ALLIANCE BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a)................................. $16.64 $16.76 $14.87 $16.67 $16.19 $18.48
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............... 0.28 0.53 0.54 0.45 0.50 0.56
Net realized and unrealized gain
(loss) on investments.............. 1.01 1.31 2.36 (1.78) 1.46 (1.11 )
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations.... 1.29 1.84 2.90 (1.33) 1.96 (0.55 )
------------ ------------ ------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividends from net investment
income.............................. (0.29) (0.53) (0.54) (0.44) (0.50 ) (0.55 )
Dividends in excess of net
investment income.................. -- -- -- (0.03) -- --
Distributions from realized gains... -- (1.40) (0.47) -- (0.95 ) (1.19 )
Distributions in excess of realized
gains............................... -- (0.03) -- -- (0.03 ) --
Tax return of capital distributions. -- -- -- (0.00) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and distributions... (0.29) (1.96) (1.01) (0.47) (1.48 ) (1.74 )
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period ...... $17.64 $16.64 $16.76 $14.87 $16.67 $16.19
============ ============ ============ ============ ============ ============
Total return (d)..................... 7.85% 11.68% 19.75% (8.02)% 12.28 % (2.85 )%
============ ============ ============ ============ ============ ============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).... $1,666,454 $1,637,856 $1,523,142 $1,329,820 $1,364,640 $1,076,670
Ratio of expenses to average net
assets.............................. 0.43%(b) 0.41% 0.40% 0.39% 0.39 % 0.40 %
Ratio of net investment income to
average net assets.................. 3.41%(b) 3.15% 3.33% 2.87% 2.99 % 3.30 %
Portfolio turnover rate.............. 76% 177% 186% 115% 99 % 91 %
Average commission rate paid (f) .... $0.0310 $0.0516 -- -- -- --
</TABLE>
89
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1997
GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------
1997 1996 1995 1994 1993* 1992
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(a).................................... $17.20 $ 17.68 $ 14.66 $ 15.61 $ 14.69 $ 15.17
------------ ------------ ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.20 0.40 0.57 0.50 0.43 0.44
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .............. 1.48 1.66 3.24 (0.98) 1.79 0.28
------------ ------------ ---------- ---------- ---------- ----------
Total from investment operations ..... 1.68 2.06 3.81 (0.48) 2.22 0.72
------------ ------------ ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income.. (0.20) (0.40 ) (0.54) (0.46) (0.42) (0.41)
Dividends in excess of net investment
income ............................. -- (0.03 ) (0.01) (0.01) -- --
Distributions from realized gains .... -- (2.10 ) (0.24) -- (0.88) (0.79)
Distributions in excess of realized
gains ............................... -- (0.01 ) -- -- -- --
------------ ------------ ---------- ---------- ---------- ----------
Total dividends and distributions .... (0.20) (2.54 ) (0.79) (0.47) (1.30) (1.20)
------------ ------------ ---------- ---------- ---------- ----------
Net asset value, end of period ......... $18.68 $ 17.20 $ 17.68 $ 14.66 $ 15.61 $ 14.69
============ ============ ========== ========== ========== ==========
Total return (d)........................ 9.82% 12.61 % 26.37% (3.15)% 15.26% 4.85%
============ ============ ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $1,509,325 $1,301,643 $896,134 $492,478 $278,467 $148,650
Ratio of expenses to average net
assets................................ 0.57%(b) 0.57 % 0.56% 0.59% 0.62% 0.60%
Ratio of net investment income to
average net assets.................... 2.31%(b) 2.31 % 3.43% 3.32% 2.71% 3.00%
Portfolio turnover rate ................ 67% 190 % 107% 131% 118% 129%
Average commission rate paid (f) ...... $0.0471 $0.0495 -- -- -- --
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
CLASS IB
---------------------------
SIX MONTHS OCTOBER 2,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
------------ -------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period
(a).................................... $ 17.19 $ 16.78
------------ --------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.19 0.07
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .............. 1.46 0.71
------------ --------------
Total from investment operations ..... 1.65 0.78
------------ --------------
LESS DISTRIBUTIONS:
Dividends from net investment income.. (0.18) (0.02 )
Dividends in excess of net investment
income ............................. -- (0.09 )
Distributions from realized gains .... -- (0.02 )
Distributions in excess of realized
gains ............................... -- (0.24 )
------------ --------------
Total dividends and distributions .... (0.18) (0.37 )
------------ --------------
Net asset value, end of period ......... $ 18.66 $ 17.19
============ ==============
Total return (d)........................ 9.69% 4.64 %
============ ==============
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $18,178 $ 472
Ratio of expenses to average net
assets................................ 0.81%(b) 0.84 %(b)
Ratio of net investment income to
average net assets.................... 2.13%(b) 1.69 %(b)
Portfolio turnover rate ................ 67% 190 %
Average commission rate paid (f) ...... $0.0471 $0.0495
</TABLE>
90
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
June 30, 1997
* 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 substantially 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:
Class IA:
Alliance Common Stock Portfolio--June 16, 1975
Alliance Money Market Portfolio--July 13, 1981
Alliance Balanced Portfolio--January 27, 1986
Alliance Aggressive Stock Portfolio--January 27, 1986
Alliance High Yield Portfolio--January 2, 1987
Alliance Global Portfolio--August 27, 1987
Alliance Conservative Investors Portfolio--October 2, 1989
Alliance Growth Investors Portfolio--October 2, 1989
Alliance Intermediate Government Securities Portfolio--April 1, 1991
Alliance Quality Bond Portfolio--October 1, 1993
Alliance Growth and Income Portfolio--October 1, 1993
Alliance Equity Index Portfolio--March 1, 1994
Alliance International Portfolio--April 3, 1995
Alliance Small Cap Growth--May 1, 1997
Class IB:
Alliance Money Market, Alliance High Yield, Alliance Common Stock,
Alliance Global, Alliance Aggressive Stock and Alliance Growth
Investors Portfolios--October 2, 1996.
Alliance Intermediate Government Securities, Alliance Growth and
Income, Alliance Equity Index, Alliance International, Alliance Small
Cap Growth and Alliance Conservative Investors Portfolios--May 1, 1997.
(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 Alliance Intermediate Government
Securities Portfolio of the Trust were substituted for shares of the
Trust's Alliance 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
security trades on which commissions are charged.
91
<PAGE>
THE HUDSON RIVER TRUST
OTHER INFORMATION
SPECIAL MEETING OF SHAREHOLDERS
The Trust's Special Meeting of Shareholders was held on April 9, 1997 for the
following purposes:
1. The approval of a new investment advisory agreement, relating to each of
the Portfolios, between the Trust and Alliance Capital Management L. P.
The voting was as follows:
<TABLE>
<CAPTION>
PORTFOLIO FOR AGAINST ABSTAIN
- --------- ------------- ------------ ------------
<S> <C> <C> <C>
Alliance Money Market........................ 42,683,490 2,109,858 1,027,084
Alliance Intermediate Government Securities 8,438,201 719,447 409,473
Alliance Quality Bond........................ 16,185,038 104,641 60,496
Alliance High Yield.......................... 17,126,128 2,693,823 785,215
Alliance Growth and Income................... 16,085,597 1,519,469 613,981
Alliance Equity Index........................ 22,522,417 2,419,334 1,044,654
Alliance Common Stock........................ 314,853,909 33,365,387 16,253,194
Alliance Global.............................. 51,324,597 5,797,754 2,255,503
Alliance International....................... 11,890,223 1,114,624 571,566
Alliance Aggressive Stock.................... 88,438,290 14,348,824 5,419,790
Alliance Conservative Investors.............. 22,558,432 1,332,998 1,117,918
Alliance Balanced............................ 85,642,910 8,194,908 4,425,249
Alliance Growth Investors.................... 65,606,161 7,006,409 3,461,364
</TABLE>
2. The election of two additional members of the Trust's Board of Trustees.
The voting was as follows:
<TABLE>
<CAPTION>
PETER D. NORRIS CLIFFORD L. MICHEL
-------------------------- --------------------------
PORTFOLIO FOR WITHHELD FOR WITHHELD
- --------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Alliance Money Market........................ 44,475,442 1,344,990 44,479,518 1,340,914
Alliance Intermediate Government Securities 9,221,748 345,373 9,230,358 336,763
Alliance Quality Bond........................ 16,276,599 73,576 16,279,869 70,306
Alliance High Yield.......................... 19,239,173 1,365,993 19,277,580 1,327,586
Alliance Growth and Income................... 17,419,231 799,816 17,353,642 865,405
Alliance Equity Index........................ 24,661,098 1,325,307 24,658,500 1,327,905
Alliance Common Stock........................ 346,776,219 17,696,271 347,100,691 17,371,799
Alliance Global.............................. 56,638,378 2,739,476 56,614,155 2,763,699
Alliance International....................... 12,974,978 601,435 12,960,044 616,369
Alliance Aggressive Stock.................... 101,313,820 6,893,084 101,424,047 6,782,857
Alliance Conservative Investors.............. 24,189,041 820,307 24,206,548 802,800
Alliance Balanced............................ 93,675,525 4,587,542 93,694,900 4,568,167
Alliance Growth Investors.................... 72,673,429 3,400,505 72,757,110 3,316,824
</TABLE>
3. The approval on the amendment and restatement of the Trust's Agreement and
Declaration of Trust. The voting was as follows:
<TABLE>
<CAPTION>
PORTFOLIO FOR AGAINST ABSTAIN
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<S> <C> <C> <C>
Alliance Money Market....................... 42,934,366 1,685,674 1,200,392
Alliance Intermediate Government
Securities................................. 8,531,002 656,305 379,814
Alliance Quality Bond....................... 16,201,388 86,656 62,131
Alliance High Yield......................... 17,649,899 1,904,747 1,050,520
Alliance Growth and Income.................. 16,196,733 1,273,511 748,803
Alliance Equity Index....................... 22,613,370 2,081,511 1,291,524
Alliance Common Stock....................... 321,186,299 24,156,789 19,129,402
Alliance Global............................. 52,521,695 4,174,481 2,681,678
Alliance International...................... 12,163,108 733,126 680,179
Alliance Aggressive Stock................... 91,364,345 10,333,861 6,508,698
Alliance Conservative Investors............. 22,335,849 1,215,454 1,458,045
Alliance Balanced........................... 87,259,886 5,939,775 5,063,406
Alliance Growth Investors................... 66,686,411 5,340,390 4,047,133
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