<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (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) ....................... $ 675,646,698 $153,979,477 $ 236,099,104 $591,549,816 $ 836,062,221
Cash ....................................................... 190,018 3,089,811 3,149,038 -- 496,109
Receivable for securities sold ............................. -- -- 755,460 20,514,002 8,943,643
Collateral held for securities loaned (Note 1) ............. -- 13,398,420 34,829,110 -- 52,777,716
Receivable from Separate Accounts for Trust shares sold .... 3,250,523 248,776 493,628 2,787,163 7,418,116
Unrealized appreciation of forward currency contracts
(Notes 1 and 4) ........................................... -- -- -- -- --
Dividends, interest and other receivables .................. 2,493,722 1,500,240 2,498,624 9,615,704 1,411,261
------------- ------------ ------------- ------------ -------------
Total assets .............................................. 681,580,961 172,216,724 277,824,964 624,466,685 907,109,066
------------- ------------ ------------- ------------ -------------
LIABILITIES:
Options written at value (Premiums received: Alliance
Common Stock Portfolio--$80,537,659) (Notes 1 and 4) -- -- -- -- --
Payable to custodian ....................................... -- -- -- 28,266 --
Payable for securities purchased ........................... -- 9,389,106 -- 17,485,398 8,108,498
Payable for collateral received on securities loaned ....... -- 13,398,420 34,829,110 -- 52,777,716
Payable to Separate Accounts for Trust shares redeemed ..... 6,664,268 70,652 192,918 743,682 267,818
Unrealized depreciation of forward currency contracts
(Notes 1 and 4) ........................................... -- -- -- -- --
Variation margin payable on futures contracts .............. -- -- -- -- --
Distribution fees payable .................................. 44,570 2,612 -- 32,452 14,987
Investment advisory fees payable ........................... 211,218 64,430 108,850 328,511 391,179
Trustees' fees payable ..................................... 31,736 6,887 7,401 11,166 11,030
Accrued expenses ........................................... 51,604 9,686 9,668 21,606 33,662
------------- ------------ ------------- ------------ -------------
Total liabilities ......................................... 7,003,396 22,941,793 35,147,947 18,651,081 61,604,890
------------- ------------ ------------- ------------ -------------
NET ASSETS ................................................. $ 674,577,565 $149,274,931 $ 242,677,017 $605,815,604 $ 845,504,176
============= ============ ============= ============ =============
Investments at cost ........................................ $ 675,482,450 $152,597,186 $ 233,677,932 $599,907,011 $ 738,955,650
============= ============ ============= ============ =============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................ $ 673,763,622 $156,000,246 $ 238,099,023 $599,161,148 $ 685,490,717
Accumulated undistributed (overdistributed) net
investment income ......................................... 624,574 127,133 533,623 847,232 54,531
Accumulated undistributed net realized gain (loss) ......... 25,121 (8,234,739) 1,623,273 14,164,419 62,852,357
Unrealized appreciation/depreciation on investments and
foreign currency denominated assets and liabilities ....... 164,248 1,382,291 2,421,098 (8,357,195) 97,106,571
------------- ------------ ------------- ------------ -------------
NET ASSETS ................................................. $ 674,577,565 $149,274,931 $ 242,677,017 $605,815,604 $ 845,504,176
============= ============ ============= ============ =============
CLASS IA SHARES:
Net Assets ................................................. $ 462,290,303 $136,460,266 $ 242,677,017 $449,307,960 $ 772,855,663
============= ============ ============= ============ =============
Shares outstanding (Note 5) ................................ 45,327,708 14,356,196 24,592,199 43,045,676 44,660,830
============= ============ ============= ============ =============
Net asset value, offering and redemption price per share
(Note 1) . ................................................ $ 10.20 $ 9.51 $ 9.87 $ 10.44 $ 17.30
============= ============ ============= ============ =============
CLASS IB SHARES:
Net Assets ................................................. $ 212,287,262 $ 12,814,665 $156,507,644 $ 72,648,513
============= ============ ============ =============
Shares outstanding (Note 5) ................................ 20,840,307 1,349,309 15,020,438 4,204,186
============= ============ ============ =============
Net asset value, offering and redemption price per share
(Note 1) .................................................. $ 10.19 $ 9.50 $ 10.42 $ 17.28
============= ============ ============ =============
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE ALLIANCE ALLIANCE AGGRESSIVE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- ---------------- --------------- ------------ ---------------
<S> <C> <C> <C> <S>
$1,388,081,236 $ 11,905,232,646 $ 1,418,728,014 $219,249,260 $ 5,040,760,071
1,715,415 82,125,812 7,737,850 7,670,139 --
998,672 61,601,971 9,592,122 1,286,170 48,036,676
173,270,053 995,733,730 146,945,006 14,485,756 756,961,100
5,685,621 41,583,099 2,086,228 510,627 4,398,175
-- -- 291,762 46,744 --
1,501,643 9,448,530 2,294,088 543,993 2,696,695
- -------------- ---------------- --------------- ------------ ---------------
1,571,252,640 13,095,725,788 1,587,675,070 243,792,689 5,852,852,717
- -------------- ---------------- --------------- ------------ ---------------
-- 135,178,515 -- -- --
-- -- -- -- 1,573,708
-- 144,218,856 850,388 4,991,422 52,701,424
173,270,053 995,733,730 146,945,006 14,485,756 756,961,100
-- 25,717 2,474,028 176,077 16,504,842
-- -- -- -- --
121,100 -- -- -- --
48 100,239 7,165 1,163 26,275
337,764 3,575,894 784,948 177,006 2,293,841
18,788 351,226 35,421 4,928 169,796
63,375 2,701,630 242,040 102,853 206,433
- -------------- ---------------- --------------- ------------ ---------------
173,811,128 1,281,885,807 151,338,996 19,939,205 830,437,419
- -------------- ---------------- --------------- ------------ ---------------
$1,397,441,512 $ 11,813,839,981 $ 1,436,336,074 $223,853,484 $ 5,022,415,298
============== ================ =============== ============ ===============
$ 992,807,520 $ 8,247,760,627 $ 1,133,971,794 $211,915,057 $ 4,415,146,312
============== ================ =============== ============ ===============
$1,000,786,481 $ 7,226,206,249 $ 1,093,447,339 $216,779,436 $ 4,057,762,661
(335,830) 11,560,589 858,582 (1,240,414) 372,365
1,453,195 973,244,234 58,026,160 942,427 338,666,513
395,537,666 3,602,828,909 284,003,993 7,372,035 625,613,759
- -------------- ---------------- --------------- ------------ ---------------
$1,397,441,512 $ 11,813,839,981 $ 1,436,336,074 $223,853,484 $ 5,022,415,298
============== ================ =============== ============ ===============
$1,397,215,139 $ 11,311,406,877 $ 1,401,575,588 $218,271,294 $ 4,895,216,377
============== ================ =============== ============ ===============
60,620,601 443,517,632 70,264,243 19,022,929 123,790,060
============== ================ =============== ============ ===============
$ 23.05 $ 25.50 $ 19.95 $ 11.47 $ 39.54
============== ================ =============== ============ ===============
$ 226,373 $ 502,433,104 $ 34,760,486 $ 5,582,190 $ 127,198,921
============== ================ =============== ============ ===============
9,825 19,731,370 1,744,315 486,736 3,226,886
============== ================ =============== ============ ===============
$ 23.04 $ 25.46 $ 19.93 $ 11.47 $ 39.42
============== ================ =============== ============ ===============
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE ALLIANCE GROWTH
GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------ ------------- --------------- --------------
<C> <C> <C> <C>
$285,482,425 $ 345,261,819 $ 1,872,124,463 $1,882,127,118
8,147,113 487,065 2,165,832 18,633,843
170,280 336,877 3,602,944 8,883,308
-- 74,639,672 452,723,965 351,367,507
1,594,738 324,824 1,181,042 2,482,915
-- -- -- 82,231
196,820 2,165,721 10,233,948 6,165,638
- ------------ ------------- --------------- --------------
295,591,376 423,215,978 2,342,032,194 2,269,742,560
- ------------ ------------- --------------- --------------
-- -- -- --
-- -- -- --
12,953,267 1,324,010 2,448,857 5,147,930
-- 74,639,672 452,723,965 351,367,507
5,771,819 20,460 23,721 485,631
-- 8,316 68,497 --
-- -- -- --
18,577 3,042 -- 12,382
205,130 141,962 668,139 861,521
1,435 13,752 90,333 52,018
5,767 53,493 141,971 185,528
- ------------ ------------- --------------- --------------
18,955,995 76,204,707 456,165,483 358,112,517
- ------------ ------------- --------------- --------------
$276,635,381 $ 347,011,271 $ 1,885,866,711 $1,911,630,043
============ ============= =============== ==============
$277,868,815 $ 317,521,701 $ 1,616,088,236 $1,622,608,781
============ ============= =============== ==============
$264,767,137 $ 304,092,482 $ 1,516,157,908 $1,531,493,991
(38,218) 304,552 889,029 (813,185)
4,292,852 14,889,486 112,866,554 122,131,643
7,613,610 27,724,751 255,953,220 258,817,594
- ------------ ------------- --------------- --------------
$276,635,381 $ 347,011,271 $ 1,885,866,711 $1,911,630,043
============ ============= =============== ==============
$186,353,683 $ 331,529,925 $ 1,885,866,711 $1,851,125,683
============ ============= =============== ==============
13,943,392 26,323,007 98,019,792 90,253,892
============ ============= =============== ==============
$ 13.37 $ 12.59 $ 19.24 $ 20.51
============ ============= =============== ==============
$ 90,281,698 $ 15,481,346 $ 60,504,360
============ ============= ==============
6,766,669 1,230,124 2,953,403
============ ============= ==============
$ 13.34 $ 12.59 $ 20.49
============ ============= ==============
</TABLE>
2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1998 (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 $928,224 and
$1,596,319 from affiliated companies for the
Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... $ -- $ -- $ -- $ -- $ 2,839,627
Interest ............................................ 17,188,899 3,999,358 6,879,774 27,401,616 --
----------- ---------- ---------- -------------- -----------
Total income ....................................... 17,188,899 3,999,358 6,879,774 27,401,616 2,839,627
----------- ---------- ---------- -------------- -----------
Expenses (Notes 1, 2 and 3):
Investment advisory fee ............................. 1,077,532 334,970 576,545 1,552,924 1,971,803
Custodian fees ...................................... 39,522 19,859 37,529 36,165 40,669
Distribution fees--Class IB ......................... 198,786 10,449 -- 136,252 64,479
Printing and mailing expenses ....................... 51,666 6,466 11,082 23,557 35,617
Professional fees ................................... 5,861 1,300 2,104 4,798 6,689
SEC registration fees ............................... 5,135 435 283 363 2,114
Trustees' fees ...................................... 6,743 1,492 2,418 5,524 6,698
Miscellaneous ....................................... 5,043 1,666 2,259 4,254 5,652
----------- ---------- ---------- -------------- -----------
Total expenses ..................................... 1,390,288 376,637 632,220 1,763,837 2,133,721
----------- ---------- ---------- -------------- -----------
NET INVESTMENT INCOME (LOSS) .......................... 15,798,611 3,622,721 6,247,554 25,637,779 705,906
----------- ---------- ---------- -------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $37,488,198 and
$60,405,244 from affiliated companies for
the Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... 5,716 597,209 2,084,447 12,013,116 55,405,605
On options written .................................. -- -- -- -- --
On foreign currency transactions .................... -- -- 80,060 -- --
On futures contracts ................................ -- -- -- -- --
----------- ---------- ---------- -------------- -----------
Realized gain (loss)--net ............................ 5,716 597,209 2,164,507 12,013,116 55,405,605
----------- ---------- ---------- -------------- -----------
Change in Unrealized
Appreciation/Depreciation:
On securities ....................................... 52,377 45,386 514,987 (15,981,192) 24,241,334
On options written .................................. -- -- -- -- --
On foreign currency transactions .................... -- -- (227,036) -- --
On futures contracts ................................ -- -- -- -- --
----------- ---------- ---------- -------------- -----------
Unrealized appreciation/depreciation--net ............ 52,377 45,386 287,951 (15,981,192) 24,241,334
----------- ---------- ---------- -------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)--NET .............. 58,093 642,595 2,452,458 (3,968,076) 79,646,939
----------- ---------- ---------- -------------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............ $15,856,704 $4,265,316 $8,700,012 $ 21,669,703 $80,352,845
=========== ========== ========== ============== ===========
</TABLE>
- ---------
* Net of foreign taxes withheld on dividends of $360, $209,666, $937,306,
$289,760, $31,155, $313,839 and $412,901 for the 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 $14,125 and $27 for the
Alliance Quality Bond and Alliance Conservative Investors Portfolios,
respectively.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE ALLIANCE ALLIANCE AGGRESSIVE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
$ 8,751,172 $ 48,277,033 $ 10,169,471 $ 2,279,671 $ 10,237,855
657,061 25,412,523 1,756,668 373,160 6,590,069
- ------------ -------------- ------------ ------------ ------------
9,408,233 73,689,556 11,926,139 2,652,831 16,827,924
- ------------ -------------- ------------ ------------ ------------
1,934,555 19,223,982 4,286,605 965,714 13,171,775
77,439 214,831 346,310 163,414 115,311
212 435,664 34,231 5,351 124,960
62,717 562,232 89,120 18,810 278,423
10,919 101,371 12,905 2,056 48,475
3,076 -- 1,782 344 --
12,568 116,486 14,831 2,367 55,646
8,783 75,702 10,250 2,226 36,569
- ------------ -------------- ------------ ------------ ------------
2,110,269 20,730,268 4,796,034 1,160,282 13,831,159
- ------------ -------------- ------------ ------------ ------------
7,297,964 52,959,288 7,130,105 1,492,549 2,996,765
- ------------ -------------- ------------ ------------ ------------
981,368 597,816,821 43,198,396 3,323,489 209,741,458
-- 200,176,533 -- -- --
3,916 (545,628) 7,113,378 2,319,183 --
514,350 -- -- -- --
- ------------ -------------- ------------ ------------ ------------
1,499,634 797,447,726 50,311,774 5,642,672 209,741,458
- ------------ -------------- ------------ ------------ ------------
174,035,360 971,110,313 140,117,591 19,418,617 207,855,418
-- (39,597,401) -- -- --
(10,468) (2,106) (5,536,764) (1,896,302) --
135,650 -- -- -- --
- ------------ -------------- ------------ ------------ ------------
174,160,542 931,510,806 134,580,827 17,522,315 207,855,418
- ------------ -------------- ------------ ------------ ------------
175,660,176 1,728,958,532 184,892,601 23,164,987 417,596,876
- ------------ -------------- ------------ ------------ ------------
$182,958,140 $1,781,917,820 $192,022,706 $ 24,657,536 $420,593,641
============ ============== ============ ============ ============
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
SMALL CAP CONSERVATIVE ALLIANCE GROWTH
GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------- ----------- ------------ ------------
<C> <C> <C> <C>
$ 540,094 $ 566,313 $ 5,256,888 $ 7,265,820
561,871 6,970,891 26,606,757 16,880,375
- ----------- ----------- ------------ ------------
1,101,965 7,537,204 31,863,645 24,146,195
- ----------- ----------- ------------ ------------
969,884 776,925 3,707,577 4,568,488
51,516 63,712 169,878 217,119
83,905 12,335 -- 59,363
10,996 18,191 100,727 106,530
1,914 3,167 17,537 17,254
365 103 -- 2,110
2,208 3,639 20,145 19,567
2,120 3,047 13,678 13,468
- ----------- ----------- ------------ ------------
1,122,908 881,119 4,029,542 5,003,899
- ----------- ----------- ------------ ------------
(20,943) 6,656,085 27,834,103 19,142,296
- ----------- ----------- ------------ ------------
5,893,550 10,465,503 85,450,806 90,178,851
-- -- -- --
-- 111,727 1,793,696 3,105,086
-- -- -- --
- ----------- ----------- ------------ ------------
5,893,550 10,577,230 87,244,502 93,283,937
- ----------- ----------- ------------ ------------
6,869,916 7,999,888 74,220,198 84,896,882
-- -- -- --
-- (149,483) (1,550,173) (2,632,029)
-- -- -- --
- ----------- ----------- ------------ ------------
6,869,916 7,850,405 72,670,025 82,264,853
- ----------- ----------- ------------ ------------
12,763,466 18,427,635 159,914,527 175,548,790
- ----------- ----------- ------------ ------------
$12,742,523 $25,083,720 $187,748,630 $194,691,086
=========== =========== ============ ============
</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,
1998 1997 1998 1997
-------------- -------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .................................. $ 15,798,611 $ 24,630,559 $ 3,622,721 $ 5,754,750
Realized gain--net ..................................... 5,716 57,662 597,209 995,258
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ........................... 52,377 (45,650) 45,386 715,736
-------------- -------------- ------------- -------------
Net increase in net assets from operations ............. 15,856,704 24,642,571 4,265,316 7,465,744
-------------- -------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income .................. (11,198,129) (21,721,933) (3,268,366) (5,646,086)
Distributions from realized gains ..................... -- (30,365) -- --
-------------- -------------- ------------- -------------
Total Class IA dividends and distributions ............. (11,198,129) (21,752,298) (3,268,366) (5,646,086)
-------------- -------------- ------------- -------------
Class IB:
Dividends from net investment income .................. (4,125,844) (2,801,881) (244,778) (90,108)
Distributions from realized gains ..................... -- (7,892) -- --
-------------- -------------- ------------- -------------
Total Class IB dividends and distributions ............. (4,125,844) (2,809,773) (244,778) (90,108)
-------------- -------------- ------------- -------------
Decrease in net assets from dividends and
distributions ......................................... (15,323,973) (24,562,071) (3,513,144) (5,736,194)
-------------- -------------- ------------- -------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold ........................................... 606,267,336 902,735,892 35,505,905 40,498,885
Shares issued in reinvestment of dividends and
distributions ....................................... 11,198,129 21,752,298 3,268,366 5,646,086
Shares redeemed ....................................... (605,852,774) (938,706,582) (18,171,109) (21,146,992)
-------------- -------------- ------------- -------------
Total Class IA transactions ............................ 11,612,691 (14,218,392) 20,603,162 24,997,979
-------------- -------------- ------------- -------------
Class IB:
Shares sold ........................................... 138,722,667 158,089,618 8,028,072 5,061,316
Shares issued in reinvestment of dividends and
distributions ....................................... 4,125,844 2,809,773 244,778 90,108
Shares redeemed ....................................... (54,051,818) (39,732,243) (519,149) (97,482)
-------------- -------------- ------------- -------------
Total Class IB transactions ............................ 88,796,693 121,167,148 7,753,701 5,053,942
-------------- -------------- ------------- -------------
Net increase in net assets derived from share
transactions .......................................... 100,409,384 106,948,756 28,356,863 30,051,921
-------------- -------------- ------------- -------------
INCREASE IN NET ASSETS .................................. 100,942,115 107,029,256 29,109,035 31,781,471
NET ASSETS, BEGINNING OF PERIOD ......................... 573,635,450 466,606,194 120,165,896 88,384,425
-------------- -------------- ------------- -------------
NET ASSETS, END OF PERIOD* .............................. $ 674,577,565 $ 573,635,450 $ 149,274,931 $ 120,165,896
============== ============== ============= =============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment
income of $624,574 and $149,936 for the Alliance Money Market Portfolio;
$127,133 and $17,556 for the Alliance Intermediate Government Securities
Portfolio; $533,623 and $321,561 for the Alliance Quality Bond Portfolio;
$847,232 and $29,459 for the Alliance High Yield Portfolio; $54,531 and
$(7,871) for the Alliance Growth and Income Portfolio; $(335,830) and
$(17,221) for the Alliance Equity Index Portfolio, as of June 30, 1998
and December 31, 1997, respectively.
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND INCOME ALLIANCE
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO PORTFOLIO EQUITY INDEX PORTFOLIO
----------------------------- ------------------------------ ----------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997 1998 1997
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 6,247,554 $ 11,009,665 $ 25,637,779 $ 29,463,188 $ 705,906 $ 3,994,742 $ 7,297,964 $ 9,754,995
2,164,507 5,117,055 12,013,116 19,038,590 55,405,605 40,626,845 1,499,634 3,560,666
287,951 (291,468) (15,981,192) 2,081,485 24,241,334 45,313,202 174,160,542 159,119,452
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
8,700,012 15,835,252 21,669,703 50,583,263 80,352,845 89,934,789 182,958,140 172,435,113
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
(6,035,492) (11,132,504) (19,212,202) (26,828,709) (627,795) (3,997,147) (7,615,708) (10,027,043)
-- -- -- (13,814,454) -- (31,316,552) -- (3,323,415)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
(6,035,492) (11,132,504) (19,212,202) (40,643,163) (627,795) (35,313,699) (7,615,708) (13,350,458)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
-- -- (5,607,804) (2,657,724) (15,709) (65,287) (865) (648)
-- -- -- (2,518,666) -- (1,815,517) -- (392)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
-- -- (5,607,804) (5,176,390) (15,709) (1,880,804) (865) (1,040)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
(6,035,492) (11,132,504) (24,820,006) (45,819,553) (643,504) (37,194,503) (7,616,573) (13,351,498)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
36,271,825 49,175,799 124,960,084 161,350,185 161,448,035 251,418,234 291,926,135 450,997,869
6,035,492 11,132,504 19,212,202 40,643,163 627,795 35,313,699 7,615,708 13,350,458
(5,528,298) (16,801,045) (49,192,842) (52,652,236) (18,588,683) (17,464,089) (21,275,572) (66,043,438)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
36,779,019 43,507,258 94,979,444 149,341,112 143,487,147 269,267,844 278,266,271 398,304,889
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
-- -- 87,610,819 63,018,257 37,292,667 31,791,055 98,281 137,857
-- -- 5,607,804 5,176,390 15,709 1,880,804 865 1,040
-- -- (1,043,038) (534,056) (2,756,581) (4,484) (6,496) (35,558)
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
-- -- 92,175,585 67,660,591 34,551,795 33,667,375 92,650 103,339
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
36,779,019 43,507,258 187,155,029 217,001,703 178,038,942 302,935,219 278,358,921 398,408,228
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
39,443,539 48,210,006 184,004,726 221,765,413 257,748,283 355,675,505 453,700,488 557,491,843
203,233,478 155,023,472 421,810,878 200,045,465 587,755,893 232,080,388 943,741,024 386,249,181
------------ ------------- ------------- ------------- ------------- ------------- -------------- -------------
$242,677,017 $ 203,233,478 $ 605,815,604 $ 421,810,878 $ 845,504,176 $ 587,755,893 $1,397,441,512 $ 943,741,024
============ ============= ============= ============= ============= ============= ============== =============
</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,
1998 1997 1998 1997
--------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) ........................... $ 52,959,288 $ 55,815,739 $ 7,130,105 $ 11,050,762
Realized gain--net ..................................... 797,447,726 983,715,133 50,311,774 101,771,496
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ........................... 931,510,806 1,046,218,790 134,580,827 14,062,715
--------------- -------------- -------------- --------------
Net increase (decrease) in net assets from operations .. 1,781,917,820 2,085,749,662 192,022,706 126,884,973
--------------- -------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income .................. (49,037,339) (43,806,963) (6,619,319) (23,003,562)
Distributions from realized gains ..................... -- (700,688,717) -- (76,503,591)
--------------- -------------- -------------- --------------
Total Class IA dividends and distributions ............. (49,037,339) (744,495,680) (6,619,319) (99,507,153)
--------------- -------------- -------------- --------------
Class IB:
Dividends from net investment income .................. (1,302,834) (241,911) (103,291) (319,694)
Distributions from realized gains ..................... -- (16,923,582) -- (1,359,092)
--------------- -------------- -------------- --------------
Total Class IB dividends and distributions ............. (1,302,834) (17,165,493) (103,291) (1,678,786)
--------------- -------------- -------------- --------------
Decrease in net assets from dividends and
distributions ......................................... (50,340,173) (761,661,173) (6,722,610) (101,185,939)
--------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold ........................................... 582,504,721 1,034,152,489 81,330,779 241,147,160
Shares issued in reinvestment of dividends and
distributions ....................................... 49,037,339 744,495,680 6,619,319 99,507,153
Shares redeemed ....................................... (327,261,325) (394,260,503) (71,936,237) (159,826,842)
--------------- -------------- -------------- --------------
Total Class IA transactions ............................ 304,280,735 1,384,387,666 16,013,861 180,827,471
--------------- -------------- -------------- --------------
Class IB:
Shares sold ........................................... 217,962,415 209,141,659 10,672,596 21,767,932
Shares issued in reinvestment of dividends and
distributions ....................................... 1,302,834 17,165,493 103,291 1,678,786
Shares redeemed ....................................... (2,057,383) (643,153) (1,140,765) (1,917,712)
--------------- -------------- -------------- --------------
Total Class IB transactions ............................ 217,207,866 225,663,999 9,635,122 21,529,006
--------------- -------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions .................................... 521,488,601 1,610,051,665 25,648,983 202,356,477
--------------- -------------- -------------- --------------
INCREASE IN NET ASSETS .................................. 2,253,066,248 2,934,140,154 210,949,079 228,055,511
NET ASSETS, BEGINNING OF PERIOD ......................... 9,560,773,733 6,626,633,579 1,225,386,995 997,331,484
--------------- -------------- -------------- --------------
NET ASSETS, END OF PERIOD* .............................. $11,813,839,981 $9,560,773,733 $1,436,336,074 $1,225,386,995
=============== ============== ============== ==============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment
income of $11,560,589 and $8,941,474 for the Alliance Common Stock
Portfolio; $858,582 and $451,087 for the Alliance Global Portfolio;
$(1,240,414) and $(1,256,432) for the Alliance International Portfolio;
$372,365 and $(113,631) for the Alliance Aggressive Stock Portfolio;
$(38,218) and $(461) for the Alliance Small Cap Growth Portfolio;
$304,552 and $35,314 for the Alliance Conservative Investors Portfolio,
as of June 30, 1998 and December 31, 1997, respectively.
** Commencement of Operations.
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
ALLIANCE ALLIANCE SMALL CAP GROWTH CONSERVATIVE INVESTORS
INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------- --------------------------------- ------------------------------ ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS MAY 1, 1997** SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED TO ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997 1998 1997
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,492,549 $ 1,609,964 $ 2,996,765 $ 4,499,773 $ (20,943) $ 16,358 $ 6,656,085 $ 12,201,104
5,642,672 8,394,226 209,741,458 523,431,192 5,893,550 1,627,719 10,577,230 13,986,324
17,522,315 (15,340,188) 207,855,418 (75,825,667) 6,869,916 743,694 7,850,405 10,167,050
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
24,657,536 (5,335,998) 420,593,641 452,105,298 12,742,523 2,387,771 25,083,720 36,354,478
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(1,448,691) (5,505,067) (2,510,769) (6,323,032) (16,814) (16,325) (6,168,897) (11,954,796)
-- (9,560,102) -- (381,316,889) -- (2,163,100) -- (9,269,071)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(1,448,691) (15,065,169) (2,510,769) (387,639,921) (16,814) (2,179,425) (6,168,897) (21,223,867)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(27,840) (69,625) -- (8,975) -- (904) (217,950) (74,433)
-- (161,535) -- (6,038,166) -- (1,071,973) -- (163,419)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(27,840) (231,160) -- (6,047,141) -- (1,072,877) (217,950) (237,852)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
(1,476,531) (15,296,329) (2,510,769) (393,687,062) (16,814) (3,252,302) (6,386,847) (21,461,719)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
301,299,398 204,985,168 679,702,253 1,331,662,733 324,061,412 154,901,196 21,074,658 34,060,741
1,448,691 15,065,169 2,510,769 387,639,921 16,814 2,179,425 6,168,897 21,223,868
(297,899,664) (161,266,462) (788,017,824) (1,058,223,800) (241,211,978) (62,293,798) (21,760,696) (44,876,250)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
4,848,425 58,783,875 (105,804,802) 661,078,854 82,866,248 94,786,823 5,482,859 10,408,359
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
2,738,724 3,841,704 48,764,071 72,451,903 40,867,118 46,064,536 9,455,443 5,707,042
27,840 231,160 -- 6,047,141 -- 1,072,877 217,950 237,851
(839,686) (234,071) (1,884,146) (608,248) (823,146) (60,253) (382,768) (107,498)
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
1,926,878 3,838,793 46,879,925 77,890,796 40,043,972 47,077,160 9,290,625 5,837,395
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
6,775,303 62,622,668 (58,924,877) 738,969,650 122,910,220 141,863,983 14,773,484 16,245,754
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
29,956,308 41,990,341 359,157,995 797,387,886 135,635,929 140,999,452 33,470,357 31,138,513
193,897,176 151,906,835 4,663,257,303 3,865,869,417 140,999,452 -- 313,540,914 282,402,401
- --------------- --------------- -------------- ----------------- --------------- ------------- ------------- -------------
$ 223,853,484 $ 193,897,176 $5,022,415,298 $ 4,663,257,303 $ 276,635,381 $ 140,999,452 $ 347,011,271 $ 313,540,914
=============== =============== ============== ================= =============== ============= ============= =============
</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,
1998 1997 1998 1997
-------------- -------------- -------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .............................. $ 27,834,103 $ 55,060,063 $ 19,142,296 $ 32,794,295
Realized gain--net ................................. 87,244,502 113,021,038 93,283,937 121,986,091
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ....................... 72,670,025 65,873,768 82,264,853 78,749,885
-------------- -------------- -------------- --------------
Net increase in net assets from operations ......... 187,748,630 233,954,869 194,691,086 233,530,271
-------------- -------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income .............. (27,029,082) (54,844,131) (18,029,318) (37,426,355)
Distributions from realized gains ................. -- (84,244,038) -- (84,649,354)
-------------- -------------- -------------- --------------
Total Class IA dividends and distributions ......... (27,029,082) (139,088,169) (18,029,318) (122,075,709)
-------------- -------------- -------------- --------------
Class IB:
Dividends from net investment income .............. -- -- (462,315) (527,651)
Distributions from realized gains ................. -- -- -- (1,840,006)
-------------- -------------- -------------- --------------
Total Class IB dividends and distributions ......... -- -- (462,315) (2,367,657)
-------------- -------------- -------------- --------------
Decrease in net assets from dividends and
distributions ..................................... (27,029,082) (139,088,169) (18,491,633) (124,443,366)
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold ....................................... 42,639,308 64,626,322 72,166,680 177,931,189
Shares issued in reinvestment of dividends and
distributions ................................... 27,029,082 139,088,169 18,029,318 122,075,709
Shares redeemed ................................... (68,609,756) (212,348,166) (41,117,222) (80,173,883)
-------------- -------------- -------------- --------------
Total Class IA transactions ........................ 1,058,634 (8,633,675) 49,078,776 219,833,015
-------------- -------------- -------------- --------------
Class IB:
Shares sold ....................................... -- -- 22,661,408 34,376,432
Shares issued in reinvestment of dividends and
distributions ................................... -- -- 462,315 2,367,657
Shares redeemed ................................... -- -- (2,890,624) (1,660,277)
-------------- -------------- -------------- --------------
Total Class IB transactions ........................ -- -- 20,233,099 35,083,812
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions ................................ 1,058,634 (8,633,675) 69,311,875 254,916,827
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS .............................. 161,778,182 86,233,025 245,511,328 364,003,732
NET ASSETS, BEGINNING OF PERIOD ..................... 1,724,088,529 1,637,855,504 1,666,118,715 1,302,114,983
-------------- -------------- -------------- --------------
NET ASSETS, END OF PERIOD* .......................... $1,885,866,711 $1,724,088,529 $1,911,630,043 $1,666,118,715
============== ============== ============== ==============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment
income of $889,029 and $84,008 for the Alliance Balanced Portfolio;
$(813,185) and $(1,463,848) for the Alliance Growth Investors Portfolio,
as of June 30, 1998 and December 31, 1997, respectively.
See Notes to Financial Statements.
9
<PAGE>
<TABLE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
- ---------------------------------------------------------------------------------------------
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES (0.3%)
Chase Manhattan Corp.
Due 08/28/98 .................................. $ 2,000,000 $ 1,980,828 5.57%
-----------
CERTIFICATES OF DEPOSIT
Barclays Bank
Due 08/25/98 .................................. 10,000,000 10,000,498 5.83
Rabobank Nederland N.V.
Due 04/27/99 .................................. 3,500,000 3,503,687 5.82
Royal Bank of Canada, New York
Due 02/24/99 .................................. 9,000,000 8,989,759 5.78
Swiss Bank Corp.
Due 03/24/99 .................................. 25,000,000 24,997,038 5.65
Westdeutsche Landesbank
Due 07/31/98 .................................. 5,000,000 4,999,934 5.78
-----------
TOTAL CERTIFICATES OF DEPOSIT (7.8%) ......... 52,490,916
-----------
COMMERCIAL PAPER
Barton Capital Corp.:
Due 07/06/98 .................................. 3,985,000 3,981,922 5.60
Due 07/24/98 .................................. 6,719,000 6,695,218 5.62
Bavaria Universal Funding Corp.
Due 09/29/98 .................................. 25,000,000 24,655,625 5.62
Corporate Asset Funding Co.
Due 08/17/98 .................................. 16,700,000 16,579,212 5.58
Corporate Asset Securitization Australia
Due 08/05/98 .................................. 3,000,000 2,983,900 5.63
Clipper Receivables Corp.
Due 08/12/98 .................................. 23,184,000 23,034,695 5.62
Concord Minuteman Capital Corp.
Due 08/17/98 .................................. 25,000,000 24,817,222 5.64
CXC, Inc.
Due 08/12/98 .................................. 10,000,000 9,935,366 5.59
Four Winds Funding Corp.
Due 07/14/98 .................................. 25,000,000 24,949,805 5.61
Grand Funding Corp.
Due 08/28/98 .................................. 25,000,000 24,777,665 5.63
Greenwich Asset Funding, Inc.
Due 07/01/98 .................................. 25,000,000 25,000,000 5.54
International Securitization
Due 08/17/98 .................................. 17,400,000 17,274,603 5.64
Lexington Capital Corp.
Due 07/01/98 .................................. 25,000,000 25,000,000 5.60
Old Line Funding Corp.
Due 08/12/98 .................................. 24,000,000 23,845,440 5.69
Park Avenue Receivables:
Due 07/14/98 .................................. 3,078,000 3,071,820 5.66
Due 08/17/98 .................................. 25,000,000 24,819,833 5.61
Premium Funding, Inc.
Due 07/27/98 .................................. 14,900,000 14,840,382 5.64
</TABLE>
10
<PAGE>
<TABLE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
- -----------------------------------------------------------------------------------------------------
<CAPTION>
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rose Funding Ltd.
Due 08/26/98 .................................... $25,101,000 $ 24,885,465 5.65%
Salomon Smith Barney Holdings, Inc.
Due 08/12/98 .................................... 25,000,000 24,837,833 5.59
Sheffield Receivable Corp.:
Due 08/17/98 .................................... 6,000,000 5,956,760 5.65
Due 08/17/98 .................................... 19,400,000 19,260,190 5.64
Sigma Finance Corp.
Due 11/12/98 .................................... 4,976,000 4,874,501 5.62
SPARC EM Ltd.:
Due 08/12/98 .................................... 20,000,000 19,871,200 5.58
Due 08/26/98 .................................... 5,000,000 4,957,067 5.63
Thames Asset Global Securitization No. 1, Inc.
Due 09/08/98 .................................... 15,000,000 14,842,163 5.61
Three Rivers Funding Corp.
Due 07/22/98 .................................... 16,278,000 16,225,394 5.64
Westways Funding Ltd.
Due 08/05/98 .................................... 22,910,000 22,786,158 5.62
Windmill Funding Corp.
Due 08/26/98 .................................... 25,115,000 24,899,345 5.63
Wood Street Funding
Due 07/22/98 .................................... 16,478,000 16,424,746 5.65
------------
TOTAL COMMERCIAL PAPER (73.6%) ................. 496,083,530
------------
U.S. GOVERNMENT AGENCIES (3.7%)
Federal Home Loan Bank
Due 03/17/99 .................................... 25,000,000 25,090,215 5.72
------------
VARIABLE RATE SECURITIES
CC (USA), Inc.
Due 10/27/98(a) ................................. 20,000,000 20,003,294 5.74
Federal Farm Credit Bank
Due 10/01/98(a) ................................. 20,000,000 20,000,000 5.50
General Electric Capital Corp., Series 1
Due 06/04/99(a) ................................. 25,000,000 24,999,470 5.58
SMM Trust, Series 1998-B
Due 03/05/99(a)+ ................................ 15,000,000 14,999,943 5.66
Wachovia Bank and Trust Co. NA
Due 02/19/99(a) ................................. 20,000,000 19,998,502 5.58
------------
TOTAL VARIABLE RATE SECURITIES (14.8%) ......... 100,001,209
------------
TOTAL INVESTMENTS IN SHORT-TERM DEBT SECURITIES (100.2%)
(Amortized Cost $675,482,450) ................... 675,646,698
OTHER ASSETS LESS LIABILITIES (-0.2%) ............ (1,069,133)
------------
NET ASSETS (100.0%) .............................. $674,577,565
============
</TABLE>
- ----------
* Based on market values at the close of business on June 30, 1998.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may only be resold to qualified institutional
buyers. At June 30, 1998, this security amounted to $14,999,943 or 2.2%
of net assets.
(a) Coupon will fluctuate based upon an interest rate index. Stated due
date reflects final maturity of security.
See Notes to Financial Statements.
11
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
ASSET BACKED (4.0%)
Advanta Credit Card Master
Trust Series 1996-CA
5.8075%, 11/15/03 (a) ........... $ 3,025,000 $ 3,024,032
IMC Home Equity Loan Trust
Series 1998-4A
5.8163%, 08/20/29 (a) ........... 3,000,000 2,999,062
------------
6,023,094
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS (6.0%)
Allied Capital Commercial
Mortgage Trust
6.31%, 09/25/03 ................. 4,291,871 4,263,716
Federal National Mortgage
Association Series 1997-M8
6.94%, 01/25/22 ................. 3,901,363 4,024,490
Residential Funding Mortgage
Securities, Inc. Series 1993-S11
7.25%, 03/25/23 ................. 650,411 648,786
------------
8,936,992
------------
MORTGAGE RELATED (9.4%)
Federal Home Loan Mortgage
Corp. GOLD
9.5%, 01/01/20 .................. 4,847 5,246
Federal National Mortgage
Association:
9.0%, 02/15/20 .................. 7,065,359 7,573,217
30 Year TBA 6.5%, 06/01/28 ...... 6,450,000 6,421,736
------------
14,000,199
------------
U.S. GOVERNMENT & AGENCIES (71.7%)
Federal Farm Credit Corp.
6.29%, 08/25/04 ................. 4,700,000 4,829,377
Federal Home Loan Bank:
5.5%, 01/10/01 .................. 4,500,000 4,479,975
5.77%, 02/03/04 ................. 6,430,000 6,444,577
Federal National Mortgage
Association
5.75%, 04/15/03 ................. 9,850,000 9,876,398
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------
<S> <C> <C>
Tennessee Valley Authority
6.5%, 08/20/01 .................. $ 5,400,000 $ 5,524,848
U.S. Treasury:
5.375% Note, 01/31/00 ........... 9,575,000 9,551,063
5.5% Note, 03/31/00 ............. 8,525,000 8,522,340
5.75% Note, 11/15/00 ............ 2,500,000 2,512,500
5.625% Note, 05/15/01 ........... 15,500,000 15,545,972
6.125% Note, 12/31/01 ........... 6,800,000 6,921,128
6.25% Note, 06/30/02 ............ 5,500,000 5,635,784
5.5% Note, 03/31/03 ............. 7,000,000 6,995,625
11.875% Bond, 11/15/03 .......... 6,300,000 8,119,125
6.625% Note, 05/15/07 ........... 11,150,000 11,982,771
------------
106,941,483
------------
TOTAL LONG-TERM DEBT SECURITIES (91.1%)
(Amortized Cost $134,519,477) 135,901,768
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
5.85%, due 07/01/98 ............. 11,100,000 11,100,000
5.5%, due 07/23/98 .............. 3,000,000 2,989,953
Federal National Mortgage
Association
5.51%, due 07/21/98 ............. 4,000,000 3,987,756
------------
TOTAL U.S. GOVERNMENT AGENCIES (12.1%) 18,077,709
------------
TOTAL SHORT-TERM DEBT SECURITIES (12.1%)
(Amortized Cost $18,077,709) ..... 18,077,709
------------
TOTAL INVESTMENTS (103.2%)
(Amortized Cost $152,597,186) 153,979,477
OTHER ASSETS LESS LIABILITIES (-3.2%) (4,704,546)
------------
NET ASSETS (100.0%) ............... $149,274,931
=============
</TABLE>
- ----------
(a) Coupon will fluctuate based upon an interest rate index. Stated due
date reflects final maturity of security.
See Notes to Financial Statements.
12
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (2.1%)
CHEMICALS
Reliance Industries Ltd.
10.375%, 06/24/16+ ............... $ 5,500,000 $ 5,187,815
------------
CONSUMER CYCLICALS (2.3%)
HOUSEHOLD FURNITURE, APPLIANCES
Sony Corp.
6.125%, 03/04/03 ................. 5,500,000 5,512,814
------------
CONSUMER NONCYCLICALS
MEDIA & CABLE
Tele-Communications, Inc.
9.8%, 02/01/12 ................... 6,530,000 8,399,604
Time Warner Entertainment Co.
8.375%, 03/15/23 ................. 5,700,000 6,676,467
Turner Broadcasting System, Inc.
8.375%, 07/01/13 ................. 2,450,000 2,808,141
------------
TOTAL CONSUMER NONCYCLICALS (7.4%) 17,884,212
------------
CREDIT SENSITIVE
BANKS (1.8%)
Chase Manhattan Corp.
6.375%, 04/01/08 ................. 4,500,000 4,507,470
------------
UTILITY--ELECTRIC (2.6%)
Dominion Resources Capital
Trust I
7.83%, 12/01/27 .................. 5,925,000 6,243,172
------------
TOTAL CREDIT SENSITIVE (4.4%) .... 10,750,642
------------
U.S. GOVERNMENT AGENCIES
MORTGAGE RELATED
Federal Home Loan Mortgage
Corp.:
7.0%, 09/01/11 ................... 6,177,747 6,287,791
7.0%, 02/01/13 ................... 4,797,243 4,882,697
Federal National Mortgage
Association:
5.25%, 01/15/03 .................. 17,790,000 17,461,952
6.5%, 06/01/11 ................... 10,741,645 10,802,014
6.5%, 09/01/11 ................... 1,770,039 1,779,987
6.5%, 05/01/13 ................... 4,951,323 4,979,150
7.0%, 05/01/26 ................... 7,137,966 7,238,290
7.0%, 03/01/27 ................... 1,791,943 1,817,138
7.0%, 01/01/28 ................... 11,039,734 11,194,897
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage
Association:
7.5%, 12/15/25 ................... $ 935,032 $ 960,455
7.5%, 01/15/27 ................... 1,002,677 1,029,940
7.5%, 04/15/27 ................... 1,412,012 1,450,405
7.5%, 05/15/27 ................... 1,371,335 1,408,621
7.5%, 06/15/27 ................... 938,091 963,598
7.0%, 07/15/27 ................... 2,894,686 2,939,930
7.5%, 09/15/27 ................... 1,376,612 1,414,042
7.5%, 11/15/27 ................... 935,236 960,665
7.0%, 02/15/28 ................... 8,700,120 8,836,102
6.5%, 03/15/28 ................... 3,612,512 3,603,481
------------
TOTAL U.S. GOVERNMENT AGENCIES (37.1%)
90,011,155
------------
U.S. GOVERNMENT
U.S. Treasury:
6.5% Note, 08/31/01 .............. 15,250,000 15,659,844
6.5% Note, 05/31/02 .............. 17,165,000 17,733,591
6.875% Note, 05/15/06 ............ 13,500,000 14,622,187
6.125% Bond, 11/15/27 ............ 22,725,000 24,351,269
------------
TOTAL U.S. GOVERNMENT (29.8%) 72,366,891
------------
ENERGY (3.3%)
COAL & GAS PIPELINES
Williams Companies, Inc.
6.125%, 02/01/01 ................. 8,055,000 8,034,138
------------
TOTAL LONG-TERM DEBT SECURITIES (86.4%)
(Amortized Cost $207,326,495)..... 209,747,667
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.
5.85%, due 07/01/98 .............. 5,400,000 5,400,000
Federal National Mortgage
Association:
5.6%, due 07/06/98 ............... 10,000,000 9,992,222
5.51%, due 07/21/98 .............. 5,000,000 4,984,695
5.48%, due 07/29/98 .............. 6,000,000 5,974,520
------------
TOTAL U.S. GOVERNMENT AGENCIES (10.9%) 26,351,437
------------
TOTAL SHORT-TERM DEBT SECURITIES (10.9%)
(Amortized Cost $26,351,437) ..... 26,351,437
------------
TOTAL INVESTMENTS (97.3%)
(Amortized Cost $233,677,932)..... 236,099,104
OTHER ASSETS
LESS LIABILITIES (2.7%) .......... 6,577,913
------------
NET ASSETS (100.0%) ................ $242,677,017
============
</TABLE>
- ----------
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may only be resold to qualified institutional
buyers. At June 30, 1998, this security amounted to $5,187,815 or 2.1% of
net assets.
13
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING & BROADCASTING
Pegasus Communications Corp.
(Class A)* ........................... 3,384 $ 79,524
-----------
CAPITAL GOODS (0.0%)
BUILDING & CONSTRUCTION
Capital Pacific Holdings, Inc.--
Warrants (expire 05/01/02)* .......... 11,850 17,775
-----------
CONSUMER CYCLICALS
LEISURE RELATED (0.1%)
Discovery Zone--Warrants
(expire 08/01/07)*+ .................. 3,500 210,000
-----------
RETAIL--GENERAL (0.0%)
FTD Corp.*+ ............................ 37,500 18,750
-----------
TOTAL CONSUMER CYCLICALS (0.1%) 228,750
-----------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.0%)
Wright Medical Technology,
Inc.--Warrants (expire
06/30/03)* ........................... 618 61,028
-----------
SOAPS & TOILETRIES (0.0%)
Renaissance Cosmetics--
Warrants (expire 08/15/01)* .......... 2,000 0
-----------
TOTAL CONSUMER
NONCYCLICALS (0.0%) ............... 61,028
-----------
TECHNOLOGY
ELECTRONICS (0.0%)
Interactive Systems Corp.--
Warrants (expire 08/01/03)* .......... 1,500 3,900
-----------
TELECOMMUNICATIONS (0.1%)
Knology Holdings, Inc.--
Warrants (expire 10/15/07)* .......... 15,000 0
Optel, Inc.* ........................... 10,000 400,000
Orion Network Systems, Inc.--
Warrants (expire 01/15/07)* .......... 4,000 0
Primus Telecommunications--
Warrants (expire 08/01/04)* .......... 6,500 195,000
-----------
595,000
-----------
TOTAL TECHNOLOGY (0.1%) .............. 598,900
-----------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (0.2%)
(Cost $111,660) ...................... 985,977
-----------
PREFERRED STOCKS:
CONSUMER CYCLICALS (0.8%)
HOUSEHOLD FURNITURE, APPLIANCES
Eagle-Picher Holdings
0.0%(a)*+ ............................ 900 5,130,000
-----------
ENERGY (0.4%)
OIL--DOMESTIC
Chesapeake Energy Corp.
7.0% Conv.+ .......................... 48,000 2,160,000
-----------
TECHNOLOGY
TELECOMMUNICATIONS (3.7%)
Benedek Communications Corp.
11.5%(b)+ ............................ 3,000 3,000,000
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
Concentric Network Corp.
13.5%(b)+ ............................ 3,000 $ 3,000,000
Nextel Communications, Inc.
(Class A)
11.125%(b)*+ ......................... 7,000 7,175,000
Rural Cellular Corp.
11.375%(b)+ .......................... 5,000 5,000,000
21st Century Telecom Group
13.75%(b) ............................ 4,000 4,360,000
-----------
TOTAL TECHNOLOGY (3.7%) .............. 22,535,000
-----------
TOTAL PREFERRED STOCKS (4.9%)
(Cost $29,810,580) ................... 29,825,000
-----------
PRINCIPAL
AMOUNT
--------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (0.4%)
Aqua Chemicals, Inc.
11.25%, 07/01/08+ .................... $ 2,500,000 2,537,500
-----------
METALS & MINING (2.7%)
AE1 Holding Co.
10.0%, 11/15/07+ ..................... 6,500,000 6,435,000
Glencore Nickel Proprietary Ltd.
9.0%, 12/01/14+ ...................... 4,000,000 3,840,000
P&L Coal Holdings Corp.
9.625%, 05/15/08+ .................... 6,100,000 6,267,750
-----------
16,542,750
-----------
PAPER (2.2%)
American Pad & Paper Co.
(Series B)
13.0%, 11/15/05 ...................... 3,500,000 3,517,500
Millar Western Forest
9.875%, 05/15/08+ .................... 6,500,000 6,337,500
Pen Tab Industries, Inc.
10.875%, 02/01/07 .................... 3,500,000 3,465,000
-----------
13,320,000
-----------
STEEL (0.5%)
Schuff Steel Co.
10.5%, 06/01/08+ ..................... 3,000,000 2,970,000
-----------
TOTAL BASIC MATERIALS (5.8%) ......... 35,370,250
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
ATC Group Services
12.0%, 01/15/08+ ..................... 5,500,000 5,060,000
-----------
PRINTING, PUBLISHING &
BROADCASTING (4.1%)
Central European Media
Enterprises Ltd.
9.375%, 08/15/04 ..................... 6,000,000 5,805,000
Radio One, Inc.
7.0%, 05/15/04(c) .................... 5,000,000 5,100,000
Regional Independent Media
10.5%, 07/01/08+ ..................... 3,000,000 3,045,000
Supercanal Holdings SA
14.5%, 12/15/07+ ..................... 1,760,350 1,760,350
Telemundo Group, Inc.
7.0%, 02/15/06(c) .................... 8,235,000 8,842,331
-----------
24,552,681
-----------
</TABLE>
14
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
PROFESSIONAL SERVICES (1.0%)
Employee Solutions, Inc.
10.0%, 10/15/04 .................... $3,250,000 $3,185,000
T/SF Communications Corp.
(Series B)
10.375%, 11/01/07 .................. 3,000,000 3,052,500
----------
6,237,500
----------
TRUCKING, SHIPPING (2.6%)
Navigator Gas Transport
10.5%, 06/30/07+ ................... 4,850,000 5,092,500
Stena Line AB
10.625%, 06/01/08 .................. 6,000,000 6,075,000
TBS Shipping International Ltd.
10.0%, 05/01/05+ ................... 4,700,000 4,277,000
----------
15,444,500
----------
TOTAL BUSINESS SERVICES (8.5%) 51,294,681
----------
CAPITAL GOODS
BUILDING & CONSTRUCTION (3.1%)
Cathay International Ltd.
13.0%, 04/15/08+ ................... 8,000,000 7,040,000
GS Superhighway Holdings
10.25%, 08/15/07+ .................. 10,000,000 7,112,500
MMI Products, Inc.
11.25%, 04/15/07 ................... 4,000,000 4,380,000
----------
18,532,500
----------
ELECTRICAL EQUIPMENT (1.5%)
Elgar Holdings
9.875%, 02/01/08+ .................. 2,250,000 2,092,500
Trench Elec & Trench, Inc.
10.25%, 12/15/07+ .................. 4,000,000 4,050,000
Wesco, Inc.
Zero Coupon, 06/01/08(a)+ .......... 5,000,000 2,925,000
----------
9,067,500
----------
MACHINERY (0.3%)
High Voltage Engineering
10.5%, 08/15/04+ ................... 2,000,000 2,060,000
----------
TOTAL CAPITAL GOODS (4.9%) ......... 29,660,000
----------
CONSUMER CYCLICALS
AIRLINES (0.8%)
Trans World Airlines
11.375%, 03/01/06+ ................. 5,000,000 5,006,250
----------
APPAREL, TEXTILE (0.5%)
NTEX, Inc.
11.5%, 06/01/06+ ................... 3,000,000 2,970,000
----------
AUTO RELATED (1.7%)
Federal Mogul Corp.
7.875%, 07/01/10 ................... 6,500,000 6,527,358
Safety Components
International, Inc.
10.125%, 07/15/07 .................. 3,500,000 3,675,000
----------
10,202,358
----------
FOOD SERVICES, LODGING (1.3%)
Mastellone Hermanos SA
11.75%, 04/01/08+ .................. 4,000,000 3,985,000
Romacorp, Inc.
12.0%, 07/01/06+ ................... 4,000,000 4,060,000
----------
8,045,000
----------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD FURNITURE, APPLIANCES (2.1%)
Home Interiors & Gifts, Inc.
10.125%, 06/01/08+ ................. $6,700,000 $6,842,375
Sealy Mattress Co.
9.875%, 12/15/07+ .................. 2,750,000 2,915,000
Spin Cycle, Inc.
Zero Coupon, 05/01/05(a) ........... 4,000,000 2,820,000
----------
12,577,375
----------
LEISURE RELATED (4.4%)
Discovery Zone
13.5%, 08/01/02+ ................... 3,500,000 3,150,000
E&S Holdings Corp.
10.375, 10/01/06 ................... 8,000,000 5,880,000
Hedstrom Corp.
10.0%, 06/01/07+ ................... 6,000,000 6,150,000
Planet Hollywood
International, Inc.
12.0%, 04/01/05+ ................... 5,000,000 4,525,000
Silverleaf Resorts, Inc.
10.5%, 04/01/08 .................... 3,000,000 2,910,000
Waterford Gaming LLC
12.75%, 11/15/03 ................... 3,784,000 4,181,320
----------
26,796,320
----------
RETAIL--GENERAL (1.1%)
Pantry, Inc.
12.0%, 11/15/00 .................... 2,150,000 2,284,375
V2 Music Holdings
Zero Coupon, 04/15/08(a) ........... 8,000,000 4,120,000
----------
6,404,375
----------
TOTAL CONSUMER CYCLICALS (11.9%) 72,001,678
----------
CONSUMER NONCYCLICALS
BEVERAGES (0.7%)
TM Group Holdings
11.0%, 05/15/08+ ................... 4,000,000 4,095,000
----------
CONTAINERS (1.0%)
Anchor Glass
11.25%, 04/01/05+ .................. 4,000,000 4,290,000
MVE, Inc.
12.5%, 02/15/02 .................... 2,000,000 2,040,000
----------
6,330,000
----------
FOODS (3.8%)
Grupo Azucarero Mexico
11.5%, 01/15/05+ ................... 6,000,000 5,137,500
Imperial Holly Corp.
9.75%, 12/15/07+ ................... 10,000,000 10,025,000
Specialty Foods Corp.
11.125%, 10/01/02 .................. 8,000,000 8,000,000
----------
23,162,500
----------
HOSPITAL SUPPLIES & SERVICES (0.7%)
Universal Hospital Services
10.25%, 03/01/08+ .................. 4,000,000 4,000,000
----------
MEDIA & CABLE (0.6%)
HMV Media Group PLC
10.25%, 05/15/08+ .................. 3,300,000 3,349,500
----------
</TABLE>
15
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
RETAIL--FOOD (1.0%)
Digiorgio Corp.
10.0%, 06/15/07 ................... $6,000,000 $5,970,000
----------
TOTAL CONSUMER
NONCYCLICALS (7.8%) ............ 46,907,000
----------
CREDIT SENSITIVE
BANKS (1.1%)
Tokai Bank
9.98%, 12/29/49+ .................. 7,000,000 6,475,000
----------
FINANCIAL SERVICES (1.7%)
Metris Companies, Inc.
10.0%, 11/01/04+ .................. 8,000,000 8,360,000
Wilshire Financial Services
Group (Series B)
13.0%, 08/15/04 ................... 2,000,000 2,150,000
----------
10,510,000
----------
TOTAL CREDIT SENSITIVE (2.8%) ..... 16,985,000
----------
ENERGY
COAL & GAS PIPELINES (0.9%)
Chesapeake Energy Corp.
9.625%, 05/01/05+ ................. 5,200,000 5,213,000
----------
OIL--DOMESTIC (5.7%)
Bayard Drilling Technologies, Inc.
11.0%, 06/30/08+ .................. 4,000,000 4,000,000
Doe Run Resources Corp.
11.25%, 03/15/05+ ................. 4,000,000 4,040,000
Michael Petroleum Corp.
11.5%, 04/01/05+ .................. 3,000,000 3,000,000
Transamerican Energy
11.5%, 06/15/02+ .................. 13,000,000 11,960,000
Trans-Resources, Inc.
10.75%, 03/15/08+ ................. 5,000,000 5,150,000
TransTexas Gas Corp.
13.75%, 12/31/01 .................. 5,829,000 6,528,480
----------
34,678,480
----------
OIL--INTERNATIONAL (1.6%)
Northern Offshore ASA
10.0%, 05/15/05+ .................. 5,000,000 4,775,000
Petro Mexicanos
9.25%, 03/30/18+ .................. 5,000,000 4,650,000
----------
9,425,000
----------
OIL--SUPPLIES & CONSTRUCTION (0.4%)
Celestica International, Inc.
10.5%, 12/31/06 ................... 2,500,000 2,759,375
----------
RAILROADS (0.8%)
American Commercial Lines
10.25%, 06/30/08+ ................. 5,000,000 5,062,500
----------
TOTAL ENERGY (9.4%) ............... 57,138,355
----------
TECHNOLOGY
ELECTRONICS (3.9%)
CHS Electronics, Inc.
9.875%, 04/15/05+ ................. 10,000,000 9,825,000
Geologistics Corp.
9.75%, 10/15/07 ................... 8,500,000 8,287,500
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
Interactive Systems, Inc.
Zero Coupon, 08/01/03(a) .......... $1,500,000 $ 600,000
Sullivan Graphics, Inc.
12.75%, 08/01/05 .................. 5,000,000 5,237,500
----------
23,950,000
----------
TELECOMMUNICATIONS (28.0%)
American Mobile Satellite Corp.
12.25%, 04/01/08 .................. 3,200,000 3,008,000
American Telecasting, Inc.
Zero Coupon, 08/15/05(a) .......... 3,415,000 751,300
Arch Communications, Inc.
12.75%, 07/01/07+ ................. 4,000,000 4,025,000
Dobson Wireline Co.
12.25%, 06/15/08+ ................. 10,000,000 9,700,000
DTI Holdings Inc.
Zero Coupon, 03/01/08(a) .......... 10,000,000 5,400,000
EchoStar Communications Corp.
12.50%, 07/01/02+ ................. 7,000,000 7,857,500
Econophone, Inc.
Zero Coupon, 02/15/08(a)+ ......... 10,000,000 5,600,000
Esprit Telecom
11.5%, 12/15/07 ................... 7,500,000 7,725,000
Exodus Communications, Inc.
11.25%, 07/01/08+ ................. 7,000,000 7,000,000
Firstworld Communications, Inc.
Zero Coupon, 04/15/08(a)(d) ....... 7,000,000 3,115,000
ICG Services, Inc.
Zero Coupon, 05/01/08(a)+ ......... 12,000,000 7,020,000
Ionica Group PLC
Zero Coupon, 05/01/07(a) .......... 12,000,000 2,400,000
Iridium LLC/Capital Corp.
(Class B) 14.0%, 07/15/05 ......... 10,000,000 11,100,000
Knology Holdings, Inc.
Zero Coupon, 10/15/07(a) .......... 11,000,000 6,490,000
Long Distance International, Inc.
12.25%, 04/15/08 .................. 5,000,000 4,950,000
MTL, Inc.
10.0%, 06/15/06+ .................. 3,500,000 3,465,000
Nextel International, Inc.
Zero Coupon, 04/15/08(a)+ ......... 10,000,000 5,750,000
Optel, Inc. (Series B)
13.0%, 02/15/05 ................... 10,000,000 10,800,000
Orion Network Systems, Inc.
11.25%, 01/15/07 .................. 4,000,000 4,500,000
Pathnet, Inc.
12.25%, 04/15/08 .................. 5,000,000 5,300,000
Price Communications Wire
9.125%, 12/15/06+ ................. 6,700,000 6,691,625
Primus Telecommunications
11.75%, 08/01/04 .................. 6,500,000 6,955,000
SBA Communications Corp.
Zero Coupon, 03/01/08(a)+ ......... 5,000,000 3,125,000
Startec Global
Communications, Inc.
12.0%, 05/15/08 ................... 5,000,000 4,850,000
United International Holdings
(Series B) Zero Coupon,
02/15/08(a)+ ...................... 10,000,000 6,175,000
US Xchange LLC
15.0%, 07/01/08+ .................. 6,500,000 6,630,000
</TABLE>
16
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
Versatel Telecommunications
13.25%, 05/15/08(d) ................ $ 5,800,000 $6,090,000
Viatel, Inc.
Zero Coupon, 04/15/08(a)+ .......... 5,000,000 3,025,000
WinStar Communications, Inc.
10.0%, 03/15/08+ ................... 4,000,000 3,980,000
WinStar Communications, Inc.
11.0%, 03/15/08(e)+ ................ 6,000,000 5,970,000
------------
169,448,425
------------
TOTAL TECHNOLOGY (31.9%) ........... 193,398,425
------------
DIVERSIFIED
MISCELLANEOUS (1.3%)
Elgin National Industries
11.0%, 11/01/07+ ................... 3,000,000 3,180,000
Samsonite Corp.
10.75%, 06/15/08+ .................. 5,000,000 4,950,000
------------
TOTAL DIVERSIFIED (1.3%) ........... 8,130,000
------------
TOTAL LONG-TERM DEBT SECURITIES (84.3%)
(Amortized Cost $520,131,321) 510,885,389
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.
5.85%, due 07/01/98 ................ $32,900,000 $32,900,000
Federal National Mortgage
Association:
5.6%, due 07/06/98 ................. 5,000,000 4,996,111
5.51%, due 07/21/98 ................ 7,000,000 6,978,572
5.48%, due 07/29/98 ................ 5,000,000 4,978,767
------------
TOTAL U.S. GOVERNMENT
AGENCIES (8.2%) ................. 49,853,450
------------
TOTAL SHORT-TERM DEBT SECURITIES (8.2%)
(Amortized Cost $49,853,450)......... 49,853,450
------------
TOTAL INVESTMENTS (97.6%)
(Cost/Amortized
Cost $599,907,011) ................ 591,549,816
OTHER ASSETS
LESS LIABILITIES (2.4%) ............ 14,265,788
------------
NET ASSETS (100.0%) .................. $605,815,604
============
</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, 1998, these securities amounted to $335,751,600 or
55.4% of net assets.
(a) Debt security initially issued in zero coupon form which converts to coupon
form at a specific rate and date.
(b) Paid-in-kind preferred, quarterly stock payments.
(c) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1998.
(d) Consists of more than one class of securities traded together as a unit;
generally bonds with attached stocks or warrants.
(e) Interest is paid-in-kind.
See Notes to Financial Statements.
17
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.8%)
Dow Chemical Co. ......................... 65,000 $ 6,284,687
------------
CHEMICALS--SPECIALTY (0.4%)
Praxair, Inc. ............................ 77,000 3,604,563
------------
TOTAL BASIC MATERIALS (1.2%) ........... 9,889,250
------------
BUSINESS SERVICES (2.6%)
PRINTING, PUBLISHING & BROADCASTING
Belo (A.H.) Corp. (Series A) ............. 360,000 8,775,000
Donnelley (R.R.) & Sons Co. .............. 155,000 7,091,250
Gannett Co. .............................. 82,000 5,827,125
------------
TOTAL BUSINESS SERVICES (2.6%).......... 21,693,375
------------
CAPITAL GOODS
AEROSPACE (1.2%)
General Dynamics Corp. ................... 218,000 10,137,000
------------
ELECTRICAL EQUIPMENT (0.9%)
General Electric Co. ..................... 83,000 7,553,000
------------
MACHINERY (3.8%)
AlliedSignal, Inc. ....................... 302,000 13,401,250
United Technologies Corp. ................ 203,700 18,842,250
------------
32,243,500
------------
TOTAL CAPITAL GOODS (5.9%) ............. 49,933,500
------------
CONSUMER CYCLICALS
AIRLINES (0.9%)
Delta Air Lines, Inc. .................... 39,200 5,066,600
Northwest Airlines Corp.
(Class A)* ............................. 70,900 2,734,081
------------
7,800,681
------------
APPAREL, TEXTILE (1.7%)
Nautica Enterprises, Inc.* ............... 350,000 9,384,375
Tommy Hilfiger Corp.* .................... 77,000 4,812,500
------------
14,196,875
------------
AUTOS & TRUCKS (1.3%)
Harley-Davidson, Inc. .................... 285,000 11,043,750
------------
LEISURE RELATED (0.3%)
Mirage Resorts, Inc.* .................... 115,000 2,450,938
------------
RETAIL--GENERAL (2.8%)
CompUSA, Inc.* ........................... 132,800 2,398,700
Dayton Hudson Corp. ...................... 336,000 16,296,000
Federated Department Stores,
Inc.* .................................. 94,600 5,090,662
------------
23,785,362
------------
TOTAL CONSUMER CYCLICALS (7.0%) 59,277,606
------------
CONSUMER NONCYCLICALS
CONTAINERS (0.0%)
Sealed Air Corp.* ........................ 11,400 418,950
------------
DRUGS (4.7%)
Bristol-Myers Squibb Co. ................. 281,000 32,297,437
Centocor, Inc.* .......................... 118,900 4,310,125
Genzyme Corp. (General
Division)* ............................. 140,000 3,578,750
------------
40,186,312
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
FOODS (3.1%)
Campbell Soup Co. ........................ 129,000 $ 6,853,125
General Mills, Inc. ...................... 200,000 13,675,000
Tyson Foods, Inc. ........................ 245,000 5,313,438
------------
25,841,563
------------
HOSPITAL SUPPLIES & SERVICES (5.4%)
Abbott Laboratories ...................... 274,000 11,199,750
Columbia/HCA Healthcare Corp. 305,000 8,883,125
PacifiCare Health Systems, Inc.
(Class B)* ............................. 115,000 10,163,125
United HealthCare Corp. .................. 240,000 15,240,000
------------
45,486,000
------------
SOAPS & TOILETRIES (1.6%)
Avon Products, Inc. ...................... 176,000 13,640,000
------------
TOBACCO (2.6%)
Philip Morris Cos., Inc. ................. 294,500 11,595,938
RJR Nabisco Holdings Corp. ............... 424,000 10,070,000
------------
21,665,938
------------
TOTAL CONSUMER NONCYCLICALS (17.4%)
147,238,763
------------
CREDIT SENSITIVE
BANKS (8.1%)
Banc One Corp. ........................... 125,000 6,976,562
Chase Manhattan Corp. .................... 400,000 30,200,000
Citicorp ................................. 133,000 19,850,250
First Union Corp. ........................ 197,000 11,475,250
------------
68,502,062
------------
FINANCIAL SERVICES (4.2%)
Associates First Capital Corp.
(Class A) .............................. 88,000 6,765,000
Household International, Inc. ............ 327,000 16,268,250
MBNA Corp. ............................... 124,500 4,108,500
Morgan Stanley Dean Witter
& Co. .................................. 34,000 3,106,750
PMI Group, Inc. .......................... 66,600 4,886,775
------------
35,135,275
------------
INSURANCE (1.5%)
Hartford Life, Inc. (Class A) ............ 60,000 3,416,250
PennCorp Financial Group, Inc. ........... 93,000 1,906,500
Travelers Group, Inc. .................... 46,500 2,819,063
Travelers Property Casualty
Corp. (Class A) ........................ 105,000 4,501,875
------------
12,643,688
------------
MORTGAGE RELATED (1.6%)
Fannie Mae ............................... 230,000 13,972,500
------------
UTILITY--ELECTRIC (4.3%)
AES Corp.* ............................... 60,100 3,159,006
CMS Energy Corp. ......................... 123,000 5,412,000
Consolidated Edison, Inc. ................ 157,300 7,245,631
FPL Group, Inc. .......................... 201,000 12,663,000
NIPSCO Industries, Inc. .................. 112,000 3,136,000
Pinnacle West Capital Corp. .............. 108,000 4,860,000
------------
36,475,637
------------
UTILITY--TELEPHONE (1.2%)
AT&T Corp. ............................... 85,300 4,872,763
Teleport Communications Group,
Inc. (Class A)* ........................ 99,700 5,408,725
------------
10,281,488
------------
TOTAL CREDIT SENSITIVE (20.9%) 177,010,650
------------
</TABLE>
18
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
ENERGY
OIL--DOMESTIC (5.3%)
Apache Corp. ........................ 288,000 $ 9,072,000
Enron Oil & Gas Co. ................. 130,000 2,632,500
Murphy Oil Corp. .................... 171,000 8,667,562
Union Pacific Resources Group,
Inc. .............................. 183,800 3,227,988
USX-Marathon Group .................. 601,500 20,638,969
--------------
44,239,019
--------------
OIL--INTERNATIONAL (1.7%)
Texaco, Inc. ........................ 136,600 8,153,312
Total S.A. (ADR) .................... 94,800 6,197,550
--------------
14,350,862
--------------
OIL--SUPPLIES & CONSTRUCTION (2.4%)
Dresser Industries, Inc. ............ 208,000 9,165,000
Noble Drilling Corp.* ............... 240,000 5,775,000
Transocean Offshore, Inc. ........... 122,800 5,464,600
--------------
20,404,600
--------------
RAILROADS (0.1%)
Canadian Pacific Ltd. ............... 39,000 1,106,625
--------------
TOTAL ENERGY (9.5%) ............... 80,101,106
--------------
TECHNOLOGY
ELECTRONICS (5.1%)
Altera Corp.* ....................... 299,374 8,850,244
Atmel Corp.* ........................ 384,000 5,232,000
Cisco Systems, Inc.* ................ 82,750 7,618,172
Intel Corp. ......................... 70,000 5,188,750
Solectron Corp.* .................... 265,200 11,154,975
Xilinx, Inc.* ....................... 145,000 4,930,000
--------------
42,974,141
--------------
OFFICE EQUIPMENT (0.8%)
Compaq Computer Corp. ............... 252,500 7,164,688
--------------
OFFICE EQUIPMENT SERVICES (3.5%)
Electronic Data Systems Corp. ....... 197,200 7,888,000
First Data Corp. .................... 467,000 15,556,938
Oracle Corp.* ....................... 258,000 6,337,125
--------------
29,782,063
--------------
TELECOMMUNICATIONS (5.3%)
Ascend Communications, Inc.* ........ 160,000 7,930,000
FORE Systems, Inc.* ................. 285,000 7,552,500
Intermedia Communications,
Inc.* ............................. 2,212 92,766
MCI Communications Corp. ............ 330,000 19,181,250
WorldCom, Inc.* ..................... 198,989 9,638,529
--------------
44,395,045
--------------
TOTAL TECHNOLOGY (14.7%) .......... 124,315,937
--------------
DIVERSIFIED
MISCELLANEOUS (3.3%)
Tyco International Ltd. ............. 258,200 16,266,600
U.S. Industries, Inc. ............... 218,000 5,395,500
Viad Corp. .......................... 130,000 3,607,500
Whitman Corp. ....................... 109,000 2,500,187
--------------
TOTAL DIVERSIFIED (3.3%) .......... 27,769,787
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
TOTAL COMMON STOCKS (82.5%)
(Cost $613,603,364)................ $ 697,229,974
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
Readers Digest "TRACES" ............. 400 10,300
--------------
TRUCKING, SHIPPING (0.3%)
CNF Trust I
5.0% Conv. Series A ............... 32,900 2,089,150
--------------
TOTAL BUSINESS SERVICES (0.3%) 2,099,450
--------------
CAPITAL GOODS (0.6%)
AEROSPACE
Loral Space & Communications
6.0% Conv. ........................ 65,900 5,033,113
--------------
CONSUMER CYCLICALS
AIRLINES (0.6%)
Continental Airlines
Finance Trust
8.5% Conv. ........................ 38,900 4,945,162
--------------
LEISURE RELATED (0.9%)
Royal Caribbean Cruises Ltd.
7.25% Series A .................... 61,700 7,774,200
--------------
TOTAL CONSUMER CYCLICALS (1.5%) 12,719,362
--------------
CONSUMER NONCYCLICALS (0.2%)
CONTAINERS
Owens-Illinois, Inc.
4.75% Conv. ....................... 37,300 1,944,263
--------------
CREDIT SENSITIVE
INSURANCE (0.3%)
Life Re Capital Trust II
6.0% Conv. ........................ 32,800 2,501,000
--------------
UTILITY--ELECTRIC (0.5%)
AES Trust I
5.375% Conv. Series A ............. 53,900 4,204,200
--------------
TOTAL CREDIT SENSITIVE (0.8%) ..... 6,705,200
--------------
ENERGY (1.1%)
RAILROADS
Union Pacific Capital Trust
6.25% Conv.+ ...................... 206,000 9,579,000
--------------
TECHNOLOGY
ELECTRONICS (0.3%)
L&H Capital Trust I
4.75% Conv.+ ...................... 36,700 2,330,450
--------------
TELECOMMUNICATIONS (1.7%)
ICG Communications, Inc.
6.75% Conv.+ ...................... 21,900 1,823,175
Intermedia Communications, Inc.:
7.0% Conv.+ ....................... 29,400 1,617,000
7.0% Conv. Series D ............... 52,200 2,871,000
IXC Communications, Inc.
6.75% Conv.+ ...................... 47,200 2,265,600
Nextel Strypes Trust
7.25% Conv. ....................... 101,400 2,256,150
</TABLE>
19
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Skytel Communications, Inc.
$2.25 Conv. ........................ 22,750 $ 796,250
WinStar Communications, Inc.
7.0% Conv.+ ........................ 59,600 3,270,550
--------------
14,899,725
--------------
TOTAL TECHNOLOGY (2.0%) ............ 17,230,175
--------------
TOTAL PREFERRED STOCKS (6.5%)
(Cost $50,293,571) ................. 55,310,563
--------------
PRINCIPAL
AMOUNT
------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.4%)
Clear Channel Communications,
Inc.
2.625% Conv., 04/01/03 ............. $ 1,225,000 1,307,688
P-Com., Inc.:
4.25% Conv., 11/01/02+ ............. 1,995,000 1,443,881
4.25% Conv., 11/01/02 .............. 860,000 622,425
--------------
3,373,994
--------------
PROFESSIONAL SERVICES (0.4%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 ............... 830,000 2,289,762
Personnel Group of America:
5.75% Conv., 07/01/04+ ............. 375,000 477,656
5.75% Conv., 07/01/04 .............. 785,000 999,894
--------------
3,767,312
--------------
TOTAL BUSINESS SERVICES (0.8%) 7,141,306
--------------
CAPITAL GOODS (0.2%)
AEROSPACE
Orbital Sciences Corp.:
5.0% Conv., 10/01/02 ............... 145,000 217,500
5.0% Conv., 10/01/02+ .............. 945,000 1,417,500
--------------
TOTAL CAPITAL GOODS (0.2%) ......... 1,635,000
--------------
CONSUMER CYCLICALS (0.5%)
RETAIL--GENERAL
Home Depot, Inc.
3.25% Conv. Sub. Note,
10/01/01 ............................ 1,665,000 3,055,275
Office Depot, Inc.
Zero Coupon, 11/01/08 .............. 1,475,000 1,135,750
--------------
TOTAL CONSUMER CYCLICALS (0.5%) 4,191,025
--------------
CONSUMER NONCYCLICALS
DRUGS (1.3%)
Centocor, Inc.
4.75% Conv., 02/15/05+ ............. 1,250,000 1,229,688
MedImmune, Inc.:
7.0% Conv., 07/01/03 ............... 1,750,000 5,635,000
7.0% Conv. Sub. Note, 07/01/03+ 360,000 1,159,200
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00 .............. 1,530,000 1,987,087
4.25% Conv., 05/31/00+ ............. 580,000 753,275
--------------
10,764,250
--------------
HOSPITAL SUPPLIES & SERVICES (0.5%)
Alternative Living Services, Inc.
5.25% Conv., 12/15/02 .............. 1,075,000 1,202,656
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
FPA Medical Management, Inc.
6.5% Conv., 12/15/01 (a) .......... $ 1,770,000 $ 212,400
RES-Care, Inc.:
6.0% Conv., 12/01/04 .............. 235,000 269,075
6.0% Conv., 12/01/04+ ............. 1,420,000 1,625,900
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 .............. 880,000 976,800
--------------
4,286,831
--------------
TOTAL CONSUMER NONCYCLICALS (1.8%) 15,051,081
--------------
CREDIT SENSITIVE (0.4%)
FINANCIAL SERVICES
RAC Financial Group, Inc.:
7.25% Conv., 08/15/03 ............. 1,080,000 2,554,875
7.25% Conv. Sub. Note,
08/15/03+ .......................... 365,000 863,453
--------------
TOTAL CREDIT SENSITIVE (0.4%) ..... 3,418,328
--------------
ENERGY (0.6%)
OIL--SUPPLIES & CONSTRUCTION
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07 .......................... 2,505,000 2,899,538
Nabors Industries, Inc.
5.0% Conv., 05/15/06 .............. 1,060,000 1,298,500
Seacor Holdings, Inc.
5.375% Conv., 11/15/06 ............ 430,000 481,600
--------------
TOTAL ENERGY (0.6%) ............... 4,679,638
--------------
TECHNOLOGY
ELECTRONICS (3.1%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ............. 3,020,000 2,770,850
HNC Software, Inc.
4.75% Conv., 03/01/03 ............. 1,545,000 1,757,438
Level One Communications, Inc.
4.0% Conv., 09/01/04+ ............. 2,180,000 2,406,175
Network Associates, Inc.
Zero Coupon, 02/13/18+ ............ 5,010,000 2,348,437
Photronics, Inc.
6.0% Conv., 06/01/04 .............. 2,890,000 3,121,200
Sanmina Corp.
5.5% Conv., 08/15/02+ ............. 2,045,000 6,293,487
SCI Systems, Inc.
5.0% Conv., 05/01/06+ ............. 2,500,000 4,031,250
Solectron Corp.
6.0% Conv., 03/01/06+ ............. 2,385,000 3,225,713
Wind River Systems, Inc.
5.0% Conv., 08/01/02+ ............. 470,000 467,650
--------------
26,422,200
--------------
TELECOMMUNICATIONS (0.4%)
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 ............. 1,575,000 1,992,375
5.75% Conv. Sub. Note,
10/01/06+ ......................... 1,200,000 1,518,000
--------------
3,510,375
--------------
TOTAL TECHNOLOGY (3.5%) ........... 29,932,575
--------------
TOTAL LONG-TERM DEBT SECURITIES (7.8%)
(Amortized Cost $57,585,984)....... 66,048,953
--------------
</TABLE>
20
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage Corp.
5.85%, due 07/01/98 ................... $ 6,500,000 $ 6,500,000
Federal National Mortgage
Association:
5.56%, due 07/07/98 ................... 3,000,000 2,997,220
5.51%, due 07/21/98 ................... 8,000,000 7,975,511
-----------
TOTAL U.S. GOVERNMENT AGENCIES (2.1%) 17,472,731
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
VALUE
(NOTE 1)
- -------------------------------------------------------------------------------
<S> <C>
TOTAL SHORT-TERM DEBT SECURITIES (2.1%)
(Amortized Cost $17,472,731) ......... $ 17,472,731
--------------
TOTAL INVESTMENTS (98.9%)
(Cost/Amortized Cost
$738,955,650)...................... 836,062,221
OTHER ASSETS
LESS LIABILITIES (1.1%) .............. 9,441,955
--------------
NET ASSETS (100.0%) .................... $ 845,504,176
==============
</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, 1998, these securities amounted to $50,147,040 or
5.9% of net assets.
(a) Subsequent to June 30, 1998, on July 15, 1998, this security defaulted on
its interest payment.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
21
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (2.0%)
Air Products & Chemicals, Inc. ....... 35,600 $ 1,424,000
Avery Dennison Corp. ................. 15,000 806,250
Dow Chemical Co. ..................... 35,000 3,384,063
Dupont (E.I.) de Nemours & Co. 174,800 13,044,450
Eastman Chemical Co. ................. 11,200 697,200
Ecolab, Inc. ......................... 21,200 657,200
FMC Corp.* ........................... 9,100 620,506
Goodrich (B.F.) Co. .................. 12,100 600,463
Hercules, Inc. ....................... 14,000 575,750
Monsanto Co. ......................... 91,600 5,118,150
Rohm & Haas Co. ...................... 9,500 987,406
Union Carbide Corp. .................. 17,800 950,075
--------------
28,865,513
--------------
CHEMICALS--SPECIALTY (0.4%)
Great Lakes Chemical Corp. ........... 16,600 654,663
Morton International, Inc. ........... 23,900 597,500
Praxair, Inc. ........................ 24,400 1,142,225
Raychem Corp. ........................ 18,100 535,081
Sigma-Aldrich Corp. .................. 17,800 625,225
Southern Co. ......................... 106,500 2,948,719
--------------
6,503,413
--------------
METALS & MINING (0.6%)
Alcan Aluminum Ltd. .................. 32,300 888,960
Aluminum Co. of America .............. 26,900 1,773,719
Barrick Gold Corp. ................... 67,500 1,295,156
Engelhard Corp. ...................... 32,900 666,225
Freeport-McMoRan Copper &
Gold, Inc. (Class B) ............... 40,800 619,650
Newmont Mining Corp. ................. 27,507 649,853
Phelps Dodge Corp. ................... 11,600 663,375
Placer Dome, Inc. .................... 66,200 777,850
Reynolds Metals Co. .................. 10,500 587,344
--------------
7,922,132
--------------
PAPER (0.9%)
Champion International Corp. ......... 13,800 678,787
Fort James Corp. ..................... 31,700 1,410,650
Georgia Pacific Group ................ 14,100 831,019
International Paper Co. .............. 45,925 1,974,775
Kimberly Clark Corp. ................. 84,344 3,869,281
Mead Corp. ........................... 21,300 676,275
Stone Container Corp.* ............... 33,900 529,688
Temple Inland, Inc. .................. 10,000 538,750
Union Camp Corp. ..................... 12,500 620,312
Westvaco Corp. ....................... 21,800 615,850
Willamette Industries, Inc. .......... 20,400 652,800
--------------
12,398,187
--------------
STEEL (0.2%)
Allegheny Teledyne, Inc. ............. 29,200 667,950
Nucor Corp. .......................... 13,100 602,600
USX-U.S. Steel Group, Inc. ........... 15,800 521,400
Worthington Industries, Inc. ......... 37,300 561,831
--------------
2,353,781
--------------
TOTAL BASIC MATERIALS (4.1%) ....... 58,043,026
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.3%)
Browning-Ferris Industries, Inc. ..... 28,200 $ 979,950
Johnson Controls, Inc. ............... 12,300 703,406
Thermo Electron Corp.* ............... 24,400 834,175
Waste Management, Inc. ............... 69,900 2,446,500
--------------
4,964,031
--------------
PRINTING, PUBLISHING &
BROADCASTING (2.7%)
CBS Corp. ............................ 109,500 3,476,625
Clear Channel Communications,
Inc.* .............................. 18,900 2,062,463
Comcast Corp. (Class A) SPL .......... 53,300 2,163,647
Deluxe Corp. ......................... 19,800 709,087
Donnelley (R.R.) & Sons Co. .......... 21,100 965,325
Dow Jones & Co., Inc. ................ 13,900 774,925
Dun & Bradstreet Corp. ............... 26,100 942,862
Gannett Co. .......................... 43,400 3,084,113
King World Productions, Inc.* ........ 24,700 629,850
Knight-Ridder, Inc. .................. 11,500 633,219
McGraw-Hill Companies, Inc. .......... 15,100 1,231,594
MediaOne Group, Inc.* ................ 92,800 4,077,400
New York Times Co. (Class A) ......... 13,900 1,101,575
Tele-Communications, Inc.
(Class A)* ......................... 77,528 2,979,982
Time Warner, Inc. .................... 88,400 7,552,675
Times Mirror Co. (Class A) ........... 12,800 804,800
Tribune Co. .......................... 18,800 1,293,675
Viacom, Inc. (Class A)* .............. 1,000 58,500
Viacom, Inc. (Class B)* .............. 53,000 3,087,250
--------------
37,629,567
--------------
PROFESSIONAL SERVICES (0.4%)
Block (H&R), Inc. .................... 15,200 640,300
Cognizant Corp. ...................... 24,900 1,568,725
Interpublic Group Cos., Inc. ......... 19,300 1,171,269
Omnicom Group, Inc. .................. 24,900 1,241,887
Service Corp. International .......... 36,100 1,547,788
--------------
6,169,969
--------------
TRUCKING, SHIPPING (0.2%)
FDX Corp.* ........................... 21,400 1,342,850
Laidlaw, Inc. ........................ 47,900 583,781
Ryder System, Inc. ................... 13,700 432,407
--------------
2,359,038
--------------
TOTAL BUSINESS SERVICES (3.6%) . 51,122,605
--------------
CAPITAL GOODS
AEROSPACE (1.2%)
Boeing Co. ........................... 153,374 6,834,729
General Dynamics Corp. ............... 18,200 846,300
Lockheed Martin Corp. ................ 29,804 3,155,499
Northrop Grumman Corp. ............... 9,700 1,000,312
Raytheon Co. (Class B) ............... 52,000 3,074,500
Rockwell International Corp. ......... 30,800 1,480,325
TRW, Inc. ............................ 17,900 977,787
--------------
17,369,452
--------------
</TABLE>
22
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------------
<S> <C> <C>
BUILDING & CONSTRUCTION (0.0%)
Centex Corp. ............................. 16,800 $ 634,200
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.5%)
Armstrong World Industries, Inc. 7,100 478,363
Crane Co. ................................ 11,700 568,181
Masco Corp. .............................. 23,700 1,433,850
PPG Industries, Inc. ..................... 26,900 1,871,231
Sherwin Williams Co. ..................... 24,800 821,500
Weyerhaeuser Co. ......................... 30,300 1,399,481
--------------
6,572,606
--------------
ELECTRICAL EQUIPMENT (3.7%)
Emerson Electric Co. ..................... 68,100 4,111,538
General Electric Co. ..................... 500,900 45,581,916
Grainger (W.W.), Inc. .................... 14,400 717,300
Thomas & Betts Corp. ..................... 12,700 625,475
--------------
51,036,229
--------------
MACHINERY (1.6%)
AlliedSignal, Inc. ....................... 86,800 3,851,750
Case Corp. ............................... 12,300 593,475
Caterpillar, Inc. ........................ 57,300 3,029,737
Cooper Industries, Inc. .................. 18,600 1,021,838
Cummins Engine Company, Inc. ............. 12,100 620,125
Deere & Co. .............................. 38,400 2,030,400
Dover Corp. .............................. 34,200 1,171,350
Fluor Corp. .............................. 13,200 673,200
Harnischfeger Industries, Inc. ........... 22,900 648,356
Illinois Tool Works, Inc. ................ 38,400 2,560,800
Ingersoll Rand Co. ....................... 25,450 1,121,391
Pall Corp. ............................... 32,100 658,050
Parker-Hannifin Corp. .................... 16,150 615,719
United Technologies Corp. ................ 35,700 3,302,250
--------------
21,898,441
--------------
TOTAL CAPITAL GOODS (7.0%) ............. 97,510,928
--------------
CONSUMER CYCLICALS
AIRLINES (0.4%)
AMR Corp.* ............................... 28,100 2,339,325
Delta Air Lines, Inc. .................... 10,900 1,408,825
Southwest Airlines Co. ................... 32,150 952,444
US Airways Group, Inc.* .................. 13,300 1,054,025
--------------
5,754,619
--------------
APPAREL, TEXTILE (0.4%)
Fruit of the Loom, Inc.
(Class A)* ............................. 17,900 594,056
Liz Claiborne, Inc. ...................... 14,400 752,400
National Service Industries, Inc. ........ 13,200 671,550
Nike, Inc. (Class B) ..................... 46,800 2,278,575
VF Corp. ................................. 18,400 947,600
--------------
5,244,181
--------------
AUTO RELATED (0.4%)
Dana Corp. ............................... 15,200 813,200
Eaton Corp. .............................. 11,200 870,800
Echlin, Inc. ............................. 12,400 608,375
Genuine Parts Co. ........................ 25,800 891,712
Goodyear Tire & Rubber Co. ............... 26,700 1,720,481
Snap-On, Inc. ............................ 14,950 541,938
--------------
5,446,506
--------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------------------------------------------------------
<S> <C> <C>
AUTOS & TRUCKS (1.8%)
AutoZone, Inc.* .......................... 22,200 $ 709,013
Chrysler Corp. ........................... 99,100 5,586,762
Ford Motor Co. ........................... 183,400 10,820,600
General Motors Corp. ..................... 108,100 7,222,431
Paccar, Inc. ............................. 9,600 501,600
--------------
24,840,406
--------------
FOOD SERVICES, LODGING (0.7%)
Harrah's Entertainment, Inc.* ............ 25,600 595,200
Marriott International, Inc.
(Class A) .............................. 36,950 1,196,256
McDonald's Corp. ......................... 105,500 7,279,500
Tricon Global Restaurants, Inc.* 22,020 697,759
Wendy's International, Inc. .............. 28,400 667,400
--------------
10,436,115
--------------
HOUSEHOLD FURNITURE, APPLIANCES (0.4%)
Black & Decker Corp. ..................... 14,500 884,500
Maytag Corp. ............................. 14,500 715,937
Newell Company ........................... 24,400 1,215,425
Rubbermaid, Inc. ......................... 22,200 736,763
Stanley Works ............................ 12,800 532,000
Whirlpool Corp. .......................... 11,500 790,625
--------------
4,875,250
--------------
LEISURE RELATED (1.4%)
American Greetings Corp.
(Class A) .............................. 13,500 687,656
Brunswick Corp. .......................... 23,000 569,250
Cendant Corp.* ........................... 124,950 2,608,331
Disney (Walt) Co. ........................ 102,400 10,758,400
Hasbro, Inc. ............................. 18,100 711,556
Hilton Hotels Corp. ...................... 36,300 1,034,550
Mattel, Inc. ............................. 44,543 1,884,726
Mirage Resorts, Inc.* .................... 27,600 588,225
--------------
18,842,694
--------------
PHOTO & OPTICAL (0.3%)
Allergan, Inc. ........................... 16,700 774,462
Allergan Specialty Therapeutics,
Inc. (Class A)* ........................ 780 7,995
Eastman Kodak Company .................... 53,900 3,938,069
--------------
4,720,526
--------------
RETAIL--GENERAL (4.8%)
Circuit City Stores-Circuit City
Group .................................. 16,000 750,000
Consolidated Stores Corp.* ............... 18,600 674,250
Costco Cos., Inc.* ....................... 33,100 2,087,369
CVS Corp. ................................ 59,000 2,297,313
Dayton Hudson Corp. ...................... 67,500 3,273,750
Dillard's, Inc. (Class A) ................ 17,400 721,013
Federated Department Stores,
Inc.* .................................. 31,400 1,689,713
Gap, Inc. ................................ 61,100 3,765,288
Harcourt General, Inc. ................... 11,600 690,200
Home Depot, Inc. ......................... 112,900 9,377,756
K-Mart Corp.* ............................ 73,000 1,405,250
Limited, Inc. ............................ 34,800 1,152,750
</TABLE>
23
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Lowe's Cos., Inc. .......................... 54,000 $ 2,190,375
May Department Stores Co. .................. 35,700 2,338,350
Nordstrom, Inc. ............................ 11,300 872,925
Penney (J.C.), Inc. ........................ 38,600 2,791,262
Sears, Roebuck & Co. ....................... 60,500 3,694,281
Tandy Corp. ................................ 15,100 801,244
TJX Cos., Inc. ............................. 48,200 1,162,825
Toys R Us, Inc.* ........................... 42,500 1,001,406
Venator Group, Inc.* ....................... 32,900 629,212
Walgreen Co. ............................... 76,400 3,156,275
Wal-Mart Stores, Inc. ...................... 346,600 21,055,950
--------------
67,578,757
--------------
TOTAL CONSUMER CYCLICALS (10.6%) 147,739,054
--------------
CONSUMER NONCYCLICALS
BEVERAGES (3.5%)
Anheuser Busch Companies, Inc. 77,500 3,657,031
Brown Forman Corp. (Class B) ............... 11,200 719,600
Coca-Cola Co. .............................. 379,300 32,430,150
Pepsico, Inc. .............................. 234,000 9,637,875
Seagram Ltd. ............................... 56,400 2,308,875
--------------
48,753,531
--------------
CONTAINERS (0.2%)
Bemis, Inc. ................................ 14,100 576,338
Crown Cork & Seal Co., Inc. ................ 17,100 812,250
Owens-Illinois, Inc.* ...................... 22,000 984,500
Sealed Air Corp.* .......................... 11,010 404,617
--------------
2,777,705
--------------
DRUGS (7.9%)
ALZA Corp.* ................................ 13,200 570,900
American Home Products Corp. ............... 200,200 10,360,350
Amgen, Inc.* ............................... 40,500 2,647,687
Bristol-Myers Squibb Co. ................... 153,200 17,608,425
Lilly (Eli) & Co. .......................... 170,000 11,230,625
Merck & Co., Inc. .......................... 183,600 24,556,500
Pfizer, Inc. ............................... 198,100 21,530,994
Pharmacia & Upjohn, Inc. ................... 78,190 3,606,514
Schering Plough Corp. ...................... 112,200 10,280,325
Warner-Lambert Co. ......................... 125,200 8,685,750
--------------
111,078,070
--------------
FOODS (2.2%)
Archer Daniels Midland Co. ................. 88,162 1,708,139
Bestfoods .................................. 44,400 2,577,975
Campbell Soup Co. .......................... 70,400 3,740,000
ConAgra, Inc. .............................. 73,300 2,322,694
General Mills, Inc. ........................ 24,400 1,668,350
Heinz (H.J.) Co. ........................... 56,350 3,162,644
Hershey Foods Corp. ........................ 22,000 1,518,000
Kellogg Co. ................................ 63,400 2,381,462
Pioneer Hi Bred International,
Inc. ..................................... 36,600 1,514,325
Quaker Oats Co. ............................ 21,400 1,175,662
Ralston-Ralston Purina Group ............... 16,500 1,927,406
Rite Aid Corp. ............................. 39,800 1,494,987
Sara Lee Corp. ............................. 73,000 4,083,438
Wrigley (Wm.), Jr. Co. ..................... 17,900 1,754,200
--------------
31,029,282
--------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLIES & SERVICES (3.6%)
Abbott Laboratories ........................ 235,700 $ 9,634,237
Baxter International, Inc. ................. 43,100 2,319,319
Becton, Dickinson & Co. .................... 18,800 1,459,350
Biomet, Inc. ............................... 22,800 753,825
Boston Scientific Corp.* ................... 29,100 2,084,287
Cardinal Health, Inc. ...................... 16,900 1,584,375
Columbia/HCA Healthcare Corp. 99,800 2,906,675
Guidant Corp. .............................. 23,200 1,654,450
Healthsouth Corp.* ......................... 60,600 1,617,263
Humana, Inc.* .............................. 23,800 742,263
Johnson and Johnson ........................ 207,200 15,281,000
Mallinckrodt, Inc. ......................... 20,300 602,656
Manor Care, Inc. ........................... 19,300 741,844
Medtronic, Inc. ............................ 72,200 4,602,750
Saint Jude Medical, Inc.* .................. 18,449 679,154
Tenet Healthcare Corp.* .................... 47,200 1,475,000
United HealthCare Corp. .................... 28,900 1,835,150
--------------
49,973,598
--------------
RETAIL--FOOD (0.6%)
Albertsons, Inc. ........................... 37,900 1,963,694
American Stores Co. ........................ 42,200 1,020,713
Giant Food, Inc. (Class A) ................. 17,400 749,287
Kroger Co.* ................................ 39,300 1,684,987
Supervalu, Inc. ............................ 15,400 683,375
Sysco Corp. ................................ 52,400 1,342,750
Winn Dixie Stores, Inc. .................... 22,900 1,172,194
--------------
8,617,000
--------------
SOAPS & TOILETRIES (3.2%)
Avon Products, Inc. ........................ 19,400 1,503,500
Clorox Co. ................................. 15,200 1,449,700
Colgate Palmolive Co. ...................... 45,900 4,039,200
Gillette Co. ............................... 173,800 9,852,287
International Flavors &
Fragrances, Inc. ......................... 16,000 695,000
Procter & Gamble Co. ....................... 208,300 18,968,319
Unilever N.V. .............................. 99,300 7,838,494
--------------
44,346,500
--------------
TOBACCO (1.3%)
Fortune Brands, Inc. ....................... 25,000 960,938
Loews Corp. ................................ 16,800 1,463,700
Philip Morris Cos., Inc. ................... 373,200 14,694,750
UST, Inc. .................................. 26,800 723,600
--------------
17,842,988
--------------
TOTAL CONSUMER NONCYCLICALS (22.5%)
314,418,674
--------------
CREDIT SENSITIVE
BANKS (8.3%)
Ahmanson (H.F.) & Co. ...................... 16,900 1,199,900
Banc One Corp. ............................. 106,700 5,955,194
BankAmerica Corp. .......................... 107,000 9,248,812
BankBoston Corp. ........................... 44,800 2,492,000
Bankers Trust New York Corp. ............... 14,700 1,706,119
Bank of New York Co., Inc. ................. 58,100 3,525,944
Chase Manhattan Corp. ...................... 130,080 9,821,040
Citicorp ................................... 70,500 10,522,125
Comerica, Inc. ............................. 23,600 1,563,500
</TABLE>
24
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Fifth Third Bancorp ................. 35,950 $ 2,264,850
First Chicago NBD Corp. ............. 44,849 3,974,743
First Union Corp. ................... 149,156 8,688,337
Golden West Financial Corp. ......... 8,300 882,394
Huntington Bancshares, Inc. ......... 29,500 988,250
KeyCorp. ............................ 67,800 2,415,375
Mellon Bank Corp. ................... 39,300 2,736,262
Mercantile Bancorp., Inc. ........... 20,200 1,017,575
Morgan (J.P.) & Co., Inc. ........... 27,400 3,209,225
National City Corp. ................. 50,400 3,578,400
NationsBank Corp. ................... 144,192 11,030,688
Northern Trust Corp. ................ 17,200 1,311,500
Norwest Corp. ....................... 115,900 4,331,762
PNC Bank Corp. ...................... 46,800 2,518,425
Republic New York Corp. ............. 16,800 1,057,350
State Street Corp. .................. 24,000 1,668,000
Summit Bancorp. ..................... 27,100 1,287,250
Suntrust Banks, Inc. ................ 32,300 2,626,394
U.S. Bancorp. ....................... 112,978 4,858,054
Wachovia Corp. ...................... 31,600 2,670,200
Washington Mutual, Inc. ............. 59,550 2,586,703
Wells Fargo & Co. ................... 13,300 4,907,700
--------------
116,644,071
--------------
FINANCIAL SERVICES (3.2%)
American Express Co. ................ 71,700 8,173,800
Associates First Capital Corp.
(Class A) ......................... 53,400 4,105,125
Beneficial Corp. .................... 8,200 1,256,138
Country Wide Credit Industries,
Inc. .............................. 15,800 801,850
Equifax, Inc. ....................... 21,800 791,613
Fleet Financial Group, Inc. ......... 42,079 3,513,596
Franklin Resources, Inc. ............ 37,900 2,046,600
Green Tree Financial Corp. .......... 19,800 847,688
Household International, Inc. ....... 49,500 2,462,625
Lehman Brothers Holdings, Inc. ...... 15,700 1,217,731
MBIA, Inc. .......................... 15,100 1,130,613
MBNA Corp. .......................... 77,287 2,550,471
Merrill Lynch & Co., Inc. ........... 51,400 4,741,650
Morgan Stanley Dean Witter
& Co. ............................. 91,405 8,352,132
Schwab (Charles) Corp. .............. 40,950 1,330,875
Synovus Financial Corp. ............. 38,250 908,437
Transamerica Corp. .................. 9,700 1,116,712
--------------
45,347,656
--------------
INSURANCE (4.7%)
Aetna, Inc. ......................... 22,943 1,746,536
Allstate Corp. ...................... 66,138 6,055,761
American General Corp. .............. 39,100 2,783,431
American International Group,
Inc. .............................. 108,225 15,800,850
Aon Corp. ........................... 25,850 1,815,962
Chubb Corp. ......................... 26,200 2,105,825
CIGNA Corp. ......................... 34,300 2,366,700
Cincinnati Financial Corp. .......... 25,400 974,725
Conseco, Inc. ....................... 28,200 1,318,350
General Re Corp. .................... 12,100 3,067,350
Hartford Financial Services
Group, Inc. ....................... 18,200 2,081,625
Jefferson-Pilot Corp. ............... 16,350 947,278
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Lincoln National Corp. Industries 15,300 $ 1,398,037
Marsh & McLennan Cos., Inc. ......... 39,300 2,375,194
MGIC Investment Corp. ............... 17,600 1,004,300
Progressive Corp. ................... 11,100 1,565,100
Providian Financial Corp. ........... 14,700 1,154,869
Safeco Corp. ........................ 21,800 990,537
Saint Paul Cos., Inc. ............... 34,664 1,458,055
SunAmerica, Inc. .................... 30,100 1,728,869
Torchmark Corp. ..................... 21,600 988,200
Travelers Group, Inc. ............... 176,857 10,721,956
UNUM Corp. .......................... 20,800 1,154,400
--------------
65,603,910
--------------
MORTGAGE RELATED (1.1%)
Fannie Mae .......................... 163,600 9,938,700
Federal Home Loan Mortgage
Corp. ............................. 107,200 5,045,100
--------------
14,983,800
--------------
UTILITY--ELECTRIC (2.2%)
Ameren Corp. ........................ 21,200 842,700
American Electric Power, Inc. ....... 29,300 1,329,488
Baltimore Gas & Electric Co. ........ 22,800 708,225
Carolina Power & Light Co. .......... 23,200 1,006,300
Central & South West Co. ............ 31,800 854,625
CINergy Corp. ....................... 24,313 850,955
Consolidated Edison, Inc. ........... 36,300 1,672,069
Dominion Resources, Inc. ............ 29,900 1,218,425
DTE Energy Co. ...................... 22,400 904,400
Duke Energy Co. ..................... 55,530 3,290,152
Edison International ................ 58,900 1,741,231
Entergy Corp. ....................... 37,600 1,081,000
FirstEnergy Corp. ................... 35,500 1,091,625
FPL Group, Inc. ..................... 28,100 1,770,300
GPU, Inc. ........................... 19,600 741,125
Houston Industries, Inc. ............ 43,600 1,346,150
Northern States Power Co. ........... 22,400 641,200
Pacificorp. ......................... 45,800 1,036,225
Peco Energy Co. ..................... 34,300 1,001,131
PG&E Corp. .......................... 58,800 1,855,875
PP&L Resources, Inc. ................ 29,000 657,937
Public Service Enterprise Group ..... 35,800 1,232,862
Sempra Energy* ...................... 25,865 717,764
Texas Utilities Co. ................. 38,000 1,581,750
Unicom Corporation .................. 33,400 1,171,088
--------------
30,344,602
--------------
UTILITY--GAS (0.4%)
Columbia Gas System, Inc. ........... 12,900 717,562
Consolidated Natural Gas Co. ........ 14,300 841,913
ENRON Corp. ......................... 50,700 2,740,969
Nicor, Inc. ......................... 17,200 690,150
--------------
4,990,594
--------------
UTILITY--TELEPHONE (5.2%)
Alltel Corp. ........................ 26,800 1,246,200
Ameritech Corp. ..................... 168,800 7,574,900
AT&T Corp. .......................... 250,500 14,309,813
Bell Atlantic Corp. ................. 239,592 10,931,385
BellSouth Corp. ..................... 152,900 10,263,412
Frontier Corp. ...................... 23,900 752,850
</TABLE>
25
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
GTE Corp. ........................... 147,700 $ 8,215,812
SBC Communications, Inc. ............ 282,746 11,309,840
Sprint Corp. ........................ 66,300 4,674,150
U.S. West Communications
Group ............................. 74,500 3,501,500
--------------
72,779,862
--------------
TOTAL CREDIT SENSITIVE (25.1%) 350,694,495
--------------
ENERGY
COAL & GAS PIPELINES (0.5%)
Burlington Resources, Inc. .......... 27,730 1,194,123
Coastal Corp. ....................... 16,400 1,144,925
Sonat, Inc. ......................... 17,700 683,662
Tenneco, Inc. ....................... 26,800 1,020,075
Williams Cos., Inc. ................. 63,400 2,139,750
--------------
6,182,535
--------------
OIL--DOMESTIC (1.5%)
Amerada Hess Corp. .................. 13,500 733,219
Amoco Corp. ......................... 149,600 6,227,100
Anadarko Petroleum Corp. ............ 10,700 718,906
Apache Corp. ........................ 21,400 674,100
Ashland, Inc. ....................... 13,400 691,775
Atlantic Richfield Co. .............. 48,600 3,796,875
Kerr McGee Corp. .................... 11,500 665,562
Occidental Petroleum Corp. .......... 53,300 1,439,100
Pennzoil Co. ........................ 12,300 622,688
Phillips Petroleum Co. .............. 40,400 1,946,775
Sun Co., Inc. ....................... 15,500 601,594
Union Pacific Resources
Group, Inc. ....................... 37,408 656,978
Unocal Corp. ........................ 36,300 1,297,725
USX-Marathon Group .................. 41,800 1,434,262
--------------
21,506,659
--------------
OIL--INTERNATIONAL (4.8%)
Chevron Corp. ....................... 100,900 8,381,006
Exxon Corp. ......................... 376,600 26,856,287
Mobil Corp. ......................... 120,500 9,233,313
Royal Dutch Petroleum Co.
(ADR) ............................. 329,300 18,049,756
Texaco, Inc. ........................ 84,200 5,025,688
--------------
67,546,050
--------------
OIL--SUPPLIES & CONSTRUCTION (0.8%)
Baker Hughes, Inc. .................. 24,100 832,956
Dresser Industries, Inc. ............ 27,600 1,216,125
Halliburton Co. ..................... 41,200 1,835,975
McDermott International, Inc. ....... 16,200 557,888
Schlumberger Ltd. ................... 76,400 5,219,075
Western Atlas, Inc.* ................ 8,200 695,975
--------------
10,357,994
--------------
RAILROADS (0.5%)
Burlington Northern Santa Fe ........ 24,051 2,361,508
CSX Corp. ........................... 31,800 1,446,900
Norfolk Southern Corp. .............. 54,900 1,636,706
Union Pacific Corp. ................. 36,000 1,588,500
--------------
7,033,614
--------------
TOTAL ENERGY (8.1%) ............... 112,626,852
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (4.1%)
Advanced Micro Devices, Inc.* ....... 38,200 $ 651,787
AMP, Inc. ........................... 33,800 1,161,875
Applied Materials, Inc.* ............ 56,200 1,657,900
BB&T Corp. .......................... 22,000 1,487,750
Cisco Systems, Inc.* ................ 156,250 14,384,766
EMC Corp.* .......................... 76,200 3,414,712
Harris Corp. ........................ 14,900 665,844
Intel Corp. ......................... 251,300 18,627,613
ITT Industries, Inc. ................ 17,400 650,325
KLA-Tencor Corp.* ................... 24,100 667,269
LSI Logic Corp.* .................... 28,600 659,588
Micron Technology, Inc.* ............ 30,800 764,225
Motorola, Inc. ...................... 91,700 4,819,981
National Semiconductor Corp.* ....... 44,500 586,844
Parametric Technology Corp.* ........ 39,500 1,071,437
Perkin-Elmer Corp. .................. 10,400 646,750
Seagate Technology, Inc.* ........... 35,200 838,200
Texas Instruments, Inc. ............. 59,600 3,475,425
3Com Corp.* ......................... 54,700 1,678,606
--------------
57,910,897
--------------
OFFICE EQUIPMENT (4.2%)
Apple Computer, Inc.* ............... 22,900 656,944
Bay Networks, Inc.* ................. 31,900 1,028,775
Ceridian Corp.* ..................... 11,100 652,125
Compaq Computer Corp. ............... 255,899 7,261,120
Dell Computer Corp.* ................ 100,600 9,336,938
Hewlett-Packard Co. ................. 159,700 9,562,037
Honeywell, Inc. ..................... 19,600 1,637,825
International Business Machines
Corp. ............................. 149,900 17,210,394
Pitney Bowes, Inc. .................. 43,300 2,083,813
Sun Microsystems, Inc.* ............. 58,200 2,528,063
Unisys Corp.* ....................... 36,300 1,025,475
Xerox Corp. ......................... 50,200 5,101,575
--------------
58,085,084
--------------
OFFICE EQUIPMENT SERVICES (4.4%)
Adobe Systems, Inc. ................. 16,000 679,000
Automatic Data Processing, Inc. ..... 45,900 3,344,962
Computer Associates
International, Inc. ............... 83,825 4,657,527
Computer Sciences Corp. ............. 23,900 1,529,600
First Data Corp. .................... 65,700 2,188,631
Gateway 2000, Inc.* ................. 22,800 1,154,250
HBO & Co. ........................... 64,800 2,284,200
Microsoft Corp.* .................... 373,300 40,456,387
Novell, Inc.* ....................... 60,700 773,925
Oracle Corp.* ....................... 151,687 3,725,812
Silicon Graphics, Inc.* ............. 56,000 679,000
--------------
61,473,294
--------------
TELECOMMUNICATIONS (3.3%)
AirTouch Communications, Inc.* 86,700 5,066,531
Ascend Communications, Inc.* ........ 29,900 1,481,919
Cabletron Systems, Inc.* ............ 47,900 643,656
DSC Communications Corp.* ........... 23,600 708,000
Lucent Technologies, Inc. ........... 199,888 16,628,183
</TABLE>
26
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
MCI Communications Corp. ............ 107,400 $ 6,242,625
Nextel Communications, Inc.
(Class A)* ........................ 38,200 950,225
Northern Telecommunications
Ltd. .............................. 79,900 4,534,325
Tellabs, Inc.* ...................... 26,400 1,890,900
WorldCom, Inc.* ..................... 155,400 7,527,187
--------------
45,673,551
--------------
TOTAL TECHNOLOGY (16.0%) .......... 223,142,826
--------------
DIVERSIFIED
MISCELLANEOUS (1.0%)
Corning, Inc. ....................... 35,400 1,230,150
Ikon Office Solutions, Inc. ......... 27,500 400,469
Minnesota Mining &
Manufacturing Co. ................. 63,100 5,186,031
Textron, Inc. ....................... 25,200 1,806,525
Tyco International Ltd. ............. 88,086 5,549,418
--------------
TOTAL DIVERSIFIED (1.0%) .......... 14,172,593
--------------
TOTAL COMMON STOCKS (98.0%)
(Cost $974,197,337) ............... 1,369,471,053
--------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT & AGENCIES
Federal Home Loan Mortgage
Corp.:
5.85%, due 07/01/98 .............. $ 5,900,000 $ 5,900,000
5.5%, due 07/23/98 ............... 6,254,000 6,233,056
Federal National Mortgage
Association
5.48%, due 07/29/98 .............. 5,000,000 4,978,767
U.S. Treasury Bill
4.93%, due 07/09/98** ............ 1,500,000 1,498,360
--------------
TOTAL U.S. GOVERNMENT &
AGENCIES (1.3%) .................. 18,610,183
--------------
TOTAL SHORT-TERM DEBT SECURITIES (1.3%)
(Amortized Cost $18,610,183) ..... 18,610,183
--------------
TOTAL INVESTMENTS (99.3%)
(Cost/Amortized Cost
$992,807,520)..................... 1,388,081,236
OTHER ASSETS
LESS LIABILITIES (0.7%) .......... 9,360,276
--------------
NET ASSETS (100.0%) ................ $1,397,441,512
==============
</TABLE>
- ----------
Financial Futures Contracts outstanding at June 30, 1998:
<TABLE>
<CAPTION>
EXPIRATION NUMBER ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE OF CONTRACTS VALUE 06/30/98 APPRECIATION
- ----------------------------- ------------ -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Long S&P 500 Index* ......... 9/98 57 $16,023,800 $16,287,750 $263,950
</TABLE>
- ----------
* Non-income producing.
** Security segregated as collateral on financial futures contracts.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
27
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (0.3%)
CHEMICALS
Monsanto Co. ................................ 625,000 $ 34,921,875
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
Waste Management, Inc. ...................... 750,000 26,250,000
--------------
PRINTING, PUBLISHING &
BROADCASTING (6.8%)
CBS Corp.(a) ................................ 2,440,400 77,482,700
Chris Craft Industries, Inc.
(Class B)*++ .............................. 1,262,939 69,066,949
Comcast Corp. (Class A) SPL ................. 1,011,800 41,072,756
Liberty Media Group (Class A)* 4,251,444 165,009,170
MediaOne Group, Inc.* ....................... 265,000 11,643,438
News Corp. Ltd. (ADR)(a) .................... 1,330,200 42,732,675
Reuters Group PLC (ADR) ..................... 1,443,880 98,905,780
Tele-Communications, Inc.
(Class A)(a)* ............................. 1,448,710 55,684,791
Time Warner, Inc. ........................... 178,900 15,284,769
Viacom, Inc. (Class B)* ..................... 3,805,800 221,687,850
--------------
798,570,878
--------------
TOTAL BUSINESS SERVICES (7.0%) 824,820,878
--------------
CAPITAL GOODS
AEROSPACE (0.5%)
Loral Space & Communications* 2,156,800 60,929,600
--------------
ELECTRICAL EQUIPMENT (0.2%)
Philips Electronics N.V. .................... 325,000 27,625,000
--------------
MACHINERY (0.2%)
AlliedSignal, Inc. .......................... 400,000 17,750,000
--------------
TOTAL CAPITAL GOODS (0.9%) ................ 106,304,600
--------------
CONSUMER CYCLICALS
AIRLINES (1.9%)
AMR Corp.* .................................. 370,000 30,802,500
Delta Air Lines, Inc. ....................... 962,300 124,377,275
Northwest Airlines Corp.
(Class A)* ................................ 595,800 22,975,538
UAL Corp.* .................................. 328,500 25,623,000
US Airways Group, Inc.* ..................... 200,000 15,850,000
--------------
219,628,313
--------------
AUTO RELATED (1.0%)
Republic Industries, Inc.(a)* ............... 4,549,500 113,737,500
--------------
AUTOS & TRUCKS (0.1%)
AutoZone, Inc.(a)* .......................... 414,400 13,234,900
Chrysler Corp. .............................. 73,800 4,160,475
--------------
17,395,375
--------------
FOOD SERVICES, LODGING (0.5%)
Starwood Hotels & Resorts ................... 1,189,151 57,450,858
--------------
LEISURE RELATED (3.3%)
Carnival Corp. (Class A)(a) ................. 1,635,200 64,794,800
Cendant Corp.(a)* ........................... 15,223,600 317,792,650
Royal Caribbean Cruises Ltd.(a) ............. 174,000 13,833,000
--------------
396,420,450
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL--GENERAL (3.4%)
Abercrombie & Fitch Co.
(Class A)*++ .............................. 488,522 $ 21,494,960
Home Depot, Inc. ............................ 2,222,000 184,564,875
Limited, Inc.(a) ............................ 2,246,975 74,431,047
Lowe's Cos., Inc. ........................... 822,800 33,374,825
Office Depot, Inc.* ......................... 450,000 14,203,125
Wal-Mart Stores, Inc. ....................... 1,128,000 68,526,000
--------------
396,594,832
--------------
TOTAL CONSUMER CYCLICALS (10.2%) 1,201,227,328
--------------
CONSUMER NONCYCLICALS
DRUGS (5.8%)
Astra AB (A Shares) ......................... 3,206,666 65,524,202
Bristol-Myers Squibb Co. .................... 2,157,000 247,920,187
Merck & Co., Inc. ........................... 2,163,200 289,328,000
Schering Plough Corp. ....................... 862,000 78,980,750
--------------
681,753,139
--------------
HOSPITAL SUPPLIES & SERVICES (2.8%)
Abbott Laboratories ......................... 1,753,600 71,678,400
Boston Scientific Corp.(a)* ................. 1,792,200 128,366,325
Columbia/HCA Healthcare Corp. 1,000,000 29,125,000
Medtronic, Inc.(a) .......................... 1,257,800 80,184,750
United HealthCare Corp. ..................... 423,500 26,892,250
--------------
336,246,725
--------------
TOBACCO (3.8%)
Loews Corp. ................................. 2,068,500 180,218,063
Philip Morris Cos., Inc.(a) ................. 6,908,200 272,010,375
--------------
452,228,438
--------------
TOTAL CONSUMER NONCYCLICALS (12.4%) 1,470,228,302
--------------
CREDIT SENSITIVE
BANKS (6.3%)
Bank of Tokyo-Mitsubishi Ltd. ............... 3,218,000 35,398,000
Chase Manhattan Corp. ....................... 3,661,736 276,461,068
Citicorp .................................... 400,000 59,700,000
First Union Corp. ........................... 2,205,000 128,441,250
NationsBank Corp. ........................... 3,145,700 240,646,050
--------------
740,646,368
--------------
FINANCIAL SERVICES (5.7%)
American Express Co. ........................ 950,400 108,345,600
Associates First Capital Corp.
(Class A) ................................. 1,080,000 83,025,000
Fleet Financial Group, Inc. ................. 192,100 16,040,350
Household International, Inc. ............... 542,400 26,984,400
MBNA Corp. .................................. 8,367,525 276,128,325
Morgan Stanley Dean Witter
& Co. ..................................... 1,113,166 101,715,543
PMI Group, Inc. ............................. 901,700 66,162,238
--------------
678,401,456
--------------
INSURANCE (10.3%)
Allstate Corp. .............................. 946,647 86,677,366
American International Group,
Inc. ...................................... 3,690,475 538,809,350
Hartford Financial Services
Group, Inc. ............................... 708,600 81,046,125
</TABLE>
28
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Progressive Corp. ................. 599,900 $ 84,585,900
Travelers Group, Inc.(a) .......... 7,036,797 426,605,848
--------------
1,217,724,589
--------------
MORTGAGE RELATED (0.1%)
Fannie Mae ........................ 193,000 11,724,750
--------------
REAL ESTATE (1.3%)
CBL & Associates
Properties, Inc.++ .............. 912,200 22,120,850
Macerich Co. ...................... 717,500 21,031,719
Simon Debartolo Group, Inc. ....... 1,443,000 46,897,500
Spieker Properties, Inc. .......... 1,373,400 53,219,250
Summit Properties, Inc. ........... 464,100 8,788,894
--------------
152,058,213
--------------
UTILITY--TELEPHONE (2.3%)
AT&T Corp. ........................ 500,000 28,562,500
BellSouth Corp. ................... 10,824 726,561
Telecomunicacoes Brasileiras
S.A.--Telebras (ADR)(a) ......... 1,372,300 149,838,006
Teleport Communications Group,
Inc. (Class A)*++ ............... 1,699,000 92,170,750
--------------
271,297,817
--------------
TOTAL CREDIT SENSITIVE (26.0%) 3,071,853,193
--------------
ENERGY
OIL--DOMESTIC (0.2%)
Union Pacific Resources
Group, Inc. ..................... 1,211,677 21,280,077
--------------
OIL--SUPPLIES & CONSTRUCTION (3.9%)
Baker Hughes, Inc. ................ 630,000 21,774,375
BJ Services Co.* .................. 2,013,000 58,502,812
Dresser Industries, Inc.(a) ....... 2,471,200 108,887,250
Halliburton Co. ................... 2,464,400 109,819,825
Nabors Industries, Inc.* .......... 910,300 18,035,319
Rowan Cos., Inc.* ................. 185,000 3,595,938
Santa Fe International Corp. ...... 286,900 8,678,725
Schlumberger Ltd.(a) .............. 500,000 34,156,250
Transocean Offshore, Inc.(a) ...... 1,550,800 69,010,600
Western Atlas, Inc.* .............. 303,800 25,785,025
--------------
458,246,119
--------------
RAILROADS (0.8%)
Canadian Pacific Ltd. ............. 2,373,300 67,342,388
Union Pacific Corp. ............... 643,371 28,388,745
--------------
95,731,133
--------------
TOTAL ENERGY (4.9%) ............. 575,257,329
--------------
TECHNOLOGY
ELECTRONICS (12.3%)
Cisco Systems, Inc.(a)* ........... 5,836,500 537,322,781
EMC Corp.(a)* ..................... 1,350,000 60,496,875
Intel Corp.(a) .................... 800,000 59,300,000
National Semiconductor Corp.* ..... 1,175,000 15,495,312
Network Associates, Inc.(a)* ...... 2,450,000 117,293,750
SCI Systems, Inc.(a)* ............. 1,125,000 42,328,125
Solectron Corp.(a)* ............... 1,600,000 67,300,000
Sterling Commerce, Inc.(a)* ....... 2,683,582 130,153,727
Texas Instruments, Inc.(a) ........ 5,340,000 311,388,750
3Com Corp.(a)* .................... 3,655,700 112,184,294
--------------
1,453,263,614
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT (4.4%)
Ceridian Corp.*++ ................. 3,815,000 $ 224,131,250
Compaq Computer Corp.(a) .......... 1,350,000 38,306,250
International Business Machines
Corp. ........................... 2,000,000 229,625,000
Sterling Software, Inc.* .......... 1,172,400 34,659,075
--------------
526,721,575
--------------
OFFICE EQUIPMENT SERVICES (0.3%)
First Data Corp.(a) ............... 915,000 30,480,938
--------------
TELECOMMUNICATIONS (15.4%)
ADC Telecommunications, Inc.* . 1,650,000 60,276,563
AirTouch Communications, Inc.*..... 894,600 52,278,187
Ascend Communications, Inc.* ...... 100,000 4,956,250
DSC Communications Corp.(a)* ...... 2,381,100 71,433,000
Ericsson LM (ADR) ................. 400,000 11,450,000
FORE Systems, Inc.* ............... 21,400 567,100
Mannesmann AG ..................... 2,013,245 204,394,322
Mannesmann AG (ADR) ............... 1,437,000 146,272,230
MCI Communications Corp. .......... 2,037,300 118,418,062
Nextel Communications, Inc.
(Class A)* ...................... 979,400 24,362,575
Nokia Corp. (ADR) ................. 309,600 22,465,350
Tele-Communications TCI
Ventures Group (Class A)(a)* . 16,137,552 323,759,637
Tellabs, Inc.(a)* ................. 1,385,000 99,200,625
WorldCom, Inc.(a)* ................ 14,032,618 679,704,934
--------------
1,819,538,835
--------------
TOTAL TECHNOLOGY (32.4%) ........ 3,830,004,962
--------------
DIVERSIFIED
MISCELLANEOUS (1.1%)
Anixter International, Inc.* ...... 393,734 7,505,554
Tyco International Ltd. ........... 2,023,336 127,470,168
--------------
TOTAL DIVERSIFIED (1.1%) ........ 134,975,722
--------------
TOTAL COMMON STOCKS (95.2%)
(Cost $7,591,850,024) ............ 11,249,594,189
--------------
PREFERRED STOCKS:
BUSINESS SERVICES (0.1%)
ENVIRONMENTAL CONTROL
Republic Industries, Inc.
6.5% Exch. Conv. ................ 470,400 11,289,600
--------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $11,561,746) ............... 11,289,600
--------------
PRINCIPAL
AMOUNT
----------
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Chase Manhattan Corp.
5.48%, 08/04/98 ................. $ 10,000,000 9,948,528
First Union National Bank
5.52%, 07/30/98 ................. 10,000,000 9,955,694
--------------
TOTAL BANKERS' ACCEPTANCES (0.2%) 19,904,222
--------------
COMMERCIAL PAPER
AIG Funding, Inc.
6.1%, due 07/01/98 .............. 76,081,000 76,081,000
Bankers Trust New York Corp.
5.57%, due 08/12/98 ............. 3,000,000 2,980,645
CXC, Inc.
5.59%, due 08/12/98 ............. 15,000,000 14,902,875
</TABLE>
29
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Dresdner Bank AG
6.0%, due 07/01/98 .......... $108,000,000 $ 108,000,000
General Re Corp.
5.63%, due 07/31/98 ......... 2,000,000 1,990,667
Henkel KGAA
5.55%, due 08/11/98 ......... 4,000,000 3,974,853
Household Finance Corp.
6.05%, due 07/01/98 ......... 35,000,000 35,000,000
Market Street Funding Corp.
6.3%, due 07/01/98 .......... 26,275,000 26,275,000
Merrill Lynch & Co., Inc.
5.59%, due 07/29/98 ......... 12,000,000 11,948,014
Mobil Credit Finance Corp.
6.15%, due 07/01/98 ......... 1,000,000 1,000,000
Rose Funding Ltd.
5.62%, due 08/12/98 ......... 33,245,000 33,028,575
Salomon Smith Barney
Holdings, Inc.
5.59%, due 08/12/98 ......... 30,000,000 29,805,750
San Diego Gas & Electric Co.
5.55%, due 08/24/98 ......... 2,600,000 2,578,355
Sheffield Receivable Corp.
5.61%, due 08/17/98 ......... 27,000,000 26,802,247
Shell Oil Co.
6.2%, due 07/01/98 .......... 4,000,000 4,000,000
Suntrust Banks, Inc.:
5.56%, due 08/12/98 ......... 17,000,000 16,890,520
5.58%, due 08/17/98 ......... 25,000,000 24,819,181
Three Rivers Funding Corp.
5.63%, due 07/24/98 ......... 37,760,000 37,624,661
UBS Finance Delaware, Inc.
5.55%, due 08/10/98 ......... 25,000,000 24,846,667
--------------
TOTAL COMMERCIAL PAPER (4.1%) 482,549,010
--------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Bank
5.55%, due 07/01/98 ......... 92,100,000 92,100,000
Federal Home Loan
Mortgage Corp.
6.05%, due 07/01/98 ......... 25,000,000 25,000,000
Federal National Mortgage
Association
5.49%, due 08/24/98 ......... 25,000,000 24,795,625
--------------
TOTAL U.S. GOVERNMENT AGENCIES (1.2%) 141,895,625
--------------
TOTAL SHORT-TERM DEBT SECURITIES (5.5%)
(Cost $644,348,857) .......... 644,348,857
--------------
TOTAL INVESTMENTS (100.8%)
(Cost/Amortized Cost
$8,247,760,627) ............. 11,905,232,646
--------------
NUMBER OF
CONTRACTS(B)
-----------
CALL OPTIONS WRITTEN*(c):
AutoZone, Inc.:
July @ $29.75 ............... 1,500 (339,000)
August @ $33.25 ............. 2,500 (182,500)
Boston Scientific Corp.
July @ $71.50 ............... 2,000 (512,000)
Carnival Corp.
August @ $37.625 ............ 2,000 (664,000)
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- -------------------------------------------------------------------
<S> <C> <C>
CBS Corp.:
July @ $34.1875 ............. 2,000 $ (15,680)
August @ $30.625 ............ 2,500 (487,500)
Cendant Corp.:
July @ $21.75 ............... 2,500 (257,500)
July @ $22.25 ............... 3,000 (186,000)
July @ $22.6875 ............. 3,000 (156,000)
July @ $23.50 ............... 2,000 (46,000)
July @ $24.875 .............. 4,000 (60,000)
August @ $19.875 ............ 2,000 (546,000)
August @ $20.625 ............ 3,500 (665,000)
August @ $20.75 ............. 5,000 (1,010,000)
August @ $21.50 ............. 2,500 (320,000)
August @ $21.75 ............. 3,000 (438,000)
August @ $21.9375 ........... 3,000 (294,000)
August @ $22.25 ............. 3,000 (243,540)
Cisco Systems, Inc.:
July @ $74.125 .............. 2,500 (4,535,000)
July @ $74.625 .............. 1,000 (1,747,000)
July @ $75.625 .............. 2,000 (3,311,620)
August @ $73.25 ............. 2,500 (4,832,500)
August @ $76.50 ............. 2,000 (3,256,000)
August @ $76.625 ............ 3,000 (4,959,540)
August @ $79.125 ............ 2,000 (2,797,200)
August @ $80.875 ............ 1,500 (1,900,080)
August @ $84.25 ............. 2,000 (2,048,000)
August @ $86.25 ............. 3,000 (2,652,000)
August @ $87.6875 ........... 2,500 (2,020,000)
September @ $88.82 .......... 2,000 (1,622,760)
September @ $90.75 .......... 1,500 (1,089,000)
Compaq Computer Corp.:
July @ $28.375 .............. 2,000 (288,000)
July @ $31.125 .............. 3,500 (66,850)
July @ $32.125 .............. 3,500 (77,000)
August @ $28.625 ............ 2,500 (433,525)
Dresser Industries, Inc.:
July @ $45.875 .............. 2,000 (224,940)
August @ $40.8719 ........... 2,000 (878,000)
DSC Communications Corp.:
August @ $26.75 ............. 3,000 (1,164,000)
August @ $27.50 ............. 2,500 (837,500)
August @ $28.50 ............. 2,500 (605,000)
August @ $29.8125 ........... 1,500 (310,500)
EMC Corp.:
July @ $41.875 .............. 1,500 (589,500)
August @ $40.75 ............. 2,000 (988,000)
First Data Corp.:
July @ $33.375 .............. 2,000 (228,000)
July @ $34.625 .............. 2,500 (155,000)
Intel Corp.:
July @ $74.00 ............... 1,000 (312,000)
August @ $68.4375 ........... 1,000 (760,500)
August @ $70.00 ............. 1,500 (927,315)
Limited, Inc.:
August @ $31.1875 ........... 3,000 (930,000)
August @ $31.9375 ........... 3,500 (819,000)
Medtronic, Inc.:
July @ $50.25 ............... 3,000 (4,080,720)
August @ $56.625 ............ 2,000 (1,594,000)
August @ $58.00 ............. 1,000 (662,000)
September @ $62.375 ......... 1,500 (472,500)
</TABLE>
30
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
Network Associates, Inc.:
August @ $38.375 ............. 2,000 $ (1,980,000)
August @ $41.125 ............. 1,000 (754,000)
News Corp. Ltd.
August @ $28.25 .............. 2,000 (856,000)
Philip Morris Cos., Inc.:
July @ $37.1875 .............. 5,000 (1,174,000)
July @ $37.375 ............... 3,500 (908,250)
July @ $37.75 ................ 2,500 (495,000)
July @ $38.25 ................ 2,000 (330,000)
August @ $37.625 ............. 3,000 (777,000)
August @ $40.0625 ............ 3,000 (507,000)
August @ $40.375 ............. 3,000 (444,000)
Republic Industries, Inc.
July @ $24.50 ................ 3,000 (405,000)
Royal Caribbean Cruises Ltd.
August @ $78.50 .............. 1,000 (498,320)
Schlumberger Ltd.
July @ $78.875 ............... 1,500 (19,500)
SCI Systems, Inc.:
July @ $37.3125 .............. 3,500 (714,000)
August @ $33.125 ............. 2,000 (1,156,240)
Solectron Corp.:
July @ $45.00 ................ 3,500 (360,500)
August @ $39.00 .............. 2,000 (928,000)
August @ $40.375 ............. 1,500 (601,500)
August @ $40.50 .............. 2,000 (770,000)
Sterling Commerce, Inc.:
July @ $41.375 ............... 1,500 (1,096,500)
August @ $38.75 .............. 2,000 (2,010,000)
August @ $40.25 .............. 2,000 (1,716,600)
August @ $41.25 .............. 2,000 (1,556,000)
August @ $42.625 ............. 2,000 (1,364,000)
August @ $43.25 .............. 2,000 (1,220,000)
September @ $47.875 .......... 3,000 (765,000)
Tele-Communications, Inc.
(Class A):
July @ $34.4375 .............. 1,500 (624,855)
July @ $35.875 ............... 1,500 (468,990)
Tele-Communications TCI
Ventures Group (Class A):
July @ $17.125 ............... 3,000 (885,000)
July @ $17.1875 .............. 3,500 (1,053,500)
July @ $17.625 ............... 3,500 (903,000)
August @ $16.50 .............. 6,000 (2,262,000)
August @ $16.6875 ............ 6,500 (2,287,500)
August @ $16.75 .............. 6,000 (2,087,040)
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
NUMBER OF VALUE
CONTRACTS(B) (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
August @ $19.25 .............. 3,500 $ (507,500)
August @ $19.50 .............. 3,000 (426,000)
September @ $19.50 ........... 2,500 (350,225)
Telecomunicacoes Brasileiras
S.A.--Telebras:
August @ $107.75 ............. 1,000 (940,000)
August @ $111.125 ............ 1,500 (1,246,500)
August @ $117.25 ............. 3,000 (1,323,000)
September @ $107.25 .......... 2,000 (2,090,000)
Tellabs, Inc.:
August @ $62.375 ............. 2,500 (2,575,000)
August @ $63.25 .............. 2,500 (2,330,275)
August @ $63.50 .............. 2,000 (1,894,680)
August @ $64.375 ............. 2,500 (2,232,150)
August @ $73.00 .............. 1,500 (577,500)
Texas Instruments, Inc.:
July @ $52.125 ............... 2,000 (1,422,000)
July @ $55.625 ............... 2,500 (1,175,000)
August @ $47.625 ............. 1,500 (1,693,500)
August @ $49.375 ............. 2,000 (1,936,000)
August @ $50.125 ............. 2,500 (2,292,500)
Transocean Offshore, Inc.
July @ $49.00 ................ 1,500 (199,500)
Travelers Group, Inc.:
July @ $64.00 ................ 1,500 (88,500)
August @ $61.75 .............. 2,500 (657,500)
WorldCom, Inc.:
July @ $44.4375 .............. 5,000 (2,175,000)
August @ $44.4375 ............ 3,500 (1,634,500)
August @ $45.50 .............. 3,500 (1,312,500)
August @ $47.5625 ............ 3,000 (861,000)
3Com Corp.:
July @ $27.125 ............... 3,000 (1,299,000)
July @ $30.00 ................ 2,000 (294,000)
July @ $32.50 ................ 2,500 (155,000)
July @ $33.625 ............... 2,000 (1,120)
July @ $34.00 ................ 2,500 (50,000)
August @ $24.75 .............. 2,500 (1,650,000)
August @ $25.00 .............. 2,000 (1,268,000)
August @ $25.8125 ............ 2,500 (1,472,500)
August @ $26.00 .............. 3,000 (1,599,000)
August @ $27.50 .............. 2,000 (874,000)
---------------
TOTAL CALL OPTIONS WRITTEN (-1.2%)
(Premiums Received $80,537,659) (135,178,515)
---------------
OTHER ASSETS
LESS LIABILITIES (0.4%) ....... 43,785,850
---------------
NET ASSETS (100.0%) ............ $11,813,839,981
===============
</TABLE>
- ----------
* Non-income producing.
++ Affiliated company as defined under the Investment Company Act of 1940
(See Note 6).
(a) Partially pledged 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.
31
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.9%)
Akzo Nobel N.V. ..................... 15,000 $ 3,335,956
Bayer AG ............................ 40,000 2,064,874
GP Batteries International Ltd. ..... 820,000 1,494,880
GP Batteries International Ltd.--
Warrants (expire 11/15/00)* ....... 12,500 11,000
Indo Gulf Fertilisers &
Chemicals Corp. Ltd. (GDR)+ . 150,000 125,295
Ishihara Sangyo Kaisha Ltd.* ........ 117,000 162,055
Johnson Matthey PLC ................. 225,000 2,021,543
Rhodia SA* .......................... 24,760 690,291
Royal Group Technologies Ltd.* 50,000 1,444,056
SKW Trostberg AG .................... 32,000 1,140,893
Yule Catto & Co. PLC ................ 12,156 75,721
--------------
12,566,564
--------------
CHEMICALS--SPECIALTY (0.7%)
SGL Carbon AG+ ...................... 78,560 9,191,106
UCAR International, Inc.* ........... 40,000 1,167,500
--------------
10,358,606
--------------
METALS & MINING (0.2%)
Great Central Mines Ltd. ............ 360,000 343,729
Randgold Resources Ltd.
(GDR)*+ ........................... 181,800 978,084
Toho Titanium ....................... 129,000 1,005,050
Westralian Sands Ltd. ............... 280,000 581,561
WMC Ltd. ............................ 200,000 602,641
--------------
3,511,065
--------------
PAPER (0.4%)
Enso Oyj (R Shares) ................. 124,000 1,341,201
Grupo Industrial Durango
(ADR)* ............................ 66,000 585,750
Jefferson Smurfit Group PLC ......... 300,000 896,794
Mayr-Melnhof Karton AG+ ............. 48,290 3,157,079
Nippon Paper Industries Co. ......... 54,000 225,162
--------------
6,205,986
--------------
STEEL (0.2%)
Broken Hill Proprietary Co. Ltd. 150,000 1,269,453
Sumitomo Metal Industries ........... 696,000 1,119,665
--------------
2,389,118
--------------
TOTAL BASIC MATERIALS (2.4%) ...... 35,031,339
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.0%)
B.U.S. Berzelius Umwelt-Service
AG ................................ 83,200 1,720,743
Daiseki Co. Ltd. .................... 13,300 78,676
Matsuda Sangyo Co. Ltd. ............. 19,000 146,660
Powerscreen International PLC ....... 640,000 961,924
Rentokil Initial PLC ................ 450,000 3,238,978
Tomra Systems ASA ................... 270,000 8,101,761
--------------
14,248,742
--------------
PRINTING, PUBLISHING &
BROADCASTING (4.5%)
CBS Corp. ........................... 136,800 4,343,400
De La Rue PLC ....................... 180,000 892,786
Elsevier N.V. ....................... 174,000 2,627,158
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Flextech PLC* ....................... 69,000 $ 638,377
Grupo Televisa S.A. (GDR)* .......... 120,000 4,515,000
Liberty Media Group (Class A)* . 283,312 10,996,047
Mediaset Spa ........................ 450,000 2,873,203
News Corp. Ltd. (ADR) ............... 91,100 2,926,588
Nippon Television Network
Corp. ............................. 3,830 1,110,706
Reed International PLC .............. 300,000 2,715,431
Reuters Group PLC (ADR) ............. 78,620 5,385,470
Schibsted ASA ....................... 60,000 1,009,785
Seat Spa* ........................... 6,000,000 4,052,114
Tele-Communications, Inc.
(Class A)* ........................ 116,425 4,475,086
Television Broadcasts Ltd. .......... 265,000 701,149
Tokyo Broadcasting System, Inc. 209,000 2,336,964
TVI-Televisao Independente SA* 1,175 0
Viacom, Inc. (Class B)* ............. 234,500 13,659,625
--------------
65,258,889
--------------
PROFESSIONAL SERVICES (1.0%)
Alvern Norway ASA* .................. 258,529 320,421
Apcoa Parking AG .................... 18,670 1,345,772
Content Beheer N.V. ................. 140,000 4,785,324
International Public Relations
PLC ............................... 30,000 24,549
Meitec .............................. 56,700 1,963,353
Unique International N.V. ........... 56,000 1,900,359
Vedior N.V. ......................... 8,881 251,153
WPP Group PLC ....................... 540,000 3,541,834
--------------
14,132,765
--------------
TRUCKING, SHIPPING (0.7%)
Brambles Industries Ltd. ............ 220,000 4,322,524
Cosco Pacific Ltd. .................. 300,000 107,447
Frontline Ltd.* ..................... 3,100,325 2,022,391
Frontline Ltd.--Warrants
(expire 05/11/01)* ................ 180,690 0
Irish Continental Group PLC ......... 140,000 2,248,038
Koninklijke Nedlloyd Groep N.V. 11,250 228,508
Yamato Transport Co. Ltd. ........... 93,000 1,043,248
--------------
9,972,156
--------------
TOTAL BUSINESS SERVICES (7.2%)..... 103,612,552
--------------
CAPITAL GOODS
AEROSPACE (0.3%)
British Aerospace ................... 320,000 2,452,906
Loral Space & Communications* 62,000 1,751,500
McKechnie PLC ....................... 50,000 363,226
--------------
4,567,632
--------------
BUILDING & CONSTRUCTION (0.4%)
ABB AG* ............................. 500 738,932
Daito Trust Construction Co.
Ltd. .............................. 46,600 352,979
ITC Corp. Ltd. ...................... 716,500 3,607
Japan Industrial Land
Development ....................... 50,000 82,961
Kaneshita Construction .............. 104,000 541,682
MacMahon Holdings Ltd. .............. 1,895,200 511,136
Metacorp BHD ........................ 335,000 96,862
Mitsui Home Co. Ltd. ................ 51,000 228,474
Nanno Construction Co. Ltd. ......... 50,000 68,533
Nippon Denwa Shisetsu ............... 43,000 144,243
</TABLE>
32
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Ohmoto Gumi Co. Ltd. .................... 35,000 $ 201,991
Oriental Construction Co. ............... 17,700 87,593
PS Corp. ................................ 91,200 372,379
Sacos Corp. ............................. 2,400 10,475
Sanyo Engineering &
Construction Co. ...................... 20,000 75,891
Sho-Bond Corp. .......................... 122,800 2,241,264
Suido Kiko Kaisha ....................... 33,000 88,082
Toda Corp. .............................. 62,000 248,233
Wesco, Inc. ............................. 18,000 48,045
--------------
6,143,362
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.8%)
BPB PLC ................................. 540,000 3,273,547
Fujikura Ltd. ........................... 335,000 1,493,507
Lafarge SA .............................. 20,000 2,066,970
Nichiha Corp. ........................... 135,700 801,748
Portland Valderrivas SA ................. 11,100 1,360,085
Unidare PLC* ............................ 519,600 1,886,341
--------------
10,882,198
--------------
ELECTRICAL EQUIPMENT (0.2%)
Alcatel Alsthom ......................... 16,000 3,256,883
Mabuchi Motor Co. ....................... 1,100 69,831
Zucchini Spa ............................ 30,400 211,296
--------------
3,538,010
--------------
MACHINERY (2.0%)
AlliedSignal, Inc. ...................... 42,000 1,863,750
Asahi Diamond Industry Co.
Ltd. .................................. 50,000 225,436
Cie Generale de Geophysique
SA (ADR)* ............................. 216,000 6,345,000
Construcciones y Auxiliar de
Ferrocarrites SA ...................... 8,925 349,201
Enshu* .................................. 53,000 91,762
Gildemeister Italiana Spa ............... 36,200 158,605
IHC Caland N.V. ......................... 52,000 2,928,245
Ishikawajima Harima Heavy
Industries Co. Ltd. ................... 130,000 237,267
Kalmar Industries AB+ ................... 60,000 902,595
Kawasaki Heavy Industries Ltd. .......... 277,000 559,515
Keyence Corp. ........................... 27,200 2,962,920
Mitsubishi Heavy Industries Ltd. . 346,000 1,307,921
Namura Shipbuilding ..................... 10,000 23,518
Nireco .................................. 21,000 103,015
Nitta Corp. ............................. 100,700 646,537
Nitto Kohki Co. Ltd. .................... 81,800 884,564
Rauma Oyj ............................... 41,600 853,617
Siebe PLC ............................... 80,000 1,599,198
SMC Corp. ............................... 56,700 4,315,286
Sodick Co.* ............................. 335,000 966,671
Thai Engine Manufacturing
Public Co. Ltd.* ...................... 87,000 32,986
Vestas Wind Systems A/S* ................ 16,580 655,140
--------------
28,012,749
--------------
TOTAL CAPITAL GOODS (3.7%) ............ 53,143,951
--------------
CONSUMER CYCLICALS
AIRLINES (2.1%)
Air Canada* ............................. 90,000 804,254
British Airways PLC ..................... 150,000 1,624,499
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Continental Airlines, Inc.
(Class B)* ............................ 169,000 $ 10,287,875
Delta Air Lines, Inc. ................... 59,500 7,690,375
Lufthansa AG ............................ 50,000 1,255,891
Northwest Airlines Corp.
(Class A)* ............................ 51,100 1,970,544
UAL Corp.* .............................. 28,200 2,199,600
US Airways Group, Inc.* ................. 28,000 2,219,000
Virgin Express Holdings PLC
(ADR)* ................................ 115,000 1,487,813
--------------
29,539,851
--------------
APPAREL, TEXTILE (0.2%)
Carli Gry International A/S ............. 30,000 2,423,228
King Co. ................................ 50,000 70,336
PT Great River International ............ 3,150,000 80,085
--------------
2,573,649
--------------
AUTO RELATED (1.2%)
Asahi Glass Co. Ltd. .................... 13,000 70,336
Autoliv, Inc. ........................... 35,000 1,106,875
Gerresheimer Glas AG .................... 12,000 180,316
LucasVarity PLC ......................... 450,000 1,788,577
Michelin (CGDE), (Class B) .............. 45,000 2,596,941
Minebea Co. Ltd. ........................ 236,000 2,351,147
Republic Industries, Inc.* .............. 367,000 9,175,000
Toyoda Gosei ............................ 11,000 32,138
--------------
17,301,330
--------------
AUTOS & TRUCKS (0.2%)
Harley-Davidson, Inc. ................... 44,400 1,720,500
Honda Motor Co. Ltd. .................... 42,000 1,496,754
--------------
3,217,254
--------------
FOOD SERVICES, LODGING (1.4%)
Accor SA ................................ 18,000 5,036,131
Compass Group PLC ....................... 825,800 9,501,941
International Fast Food Corp.* .......... 8,000 6,800
QPQ Corp.--Warrants
(expire 09/22/98)* .................... 32,700 128
Restaurant Brands New Zealand
Ltd. .................................. 220,100 106,348
Sanyo Pax Co. Ltd. ...................... 50,000 284,952
Selecta Group ........................... 7,000 1,496,338
Starwood Hotels & Resorts ............... 73,857 3,568,216
Thistle Hotels PLC ...................... 240,000 877,756
--------------
20,878,610
--------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.5%)
Hunter Douglas N.V. ..................... 60,000 3,260,709
Industrie Natuzzi Spa (ADR) ............. 120,000 3,120,000
Moulinex* ............................... 20,527 532,565
--------------
6,913,274
--------------
LEISURE RELATED (3.3%)
Amer Group Ltd. (Series A)* ............. 40,000 773,363
Canal Plus .............................. 19,330 3,611,889
Carnival Corp. (Class A) ................ 11,000 435,875
Cendant Corp.* .......................... 693,100 14,468,463
Cinar Films, Inc. (Class B)* ............ 90,000 1,755,000
EMI Group PLC ........................... 200,000 1,750,167
Hoyts Cinemas Group+ .................... 1,370,000 1,783,744
Imagineer Co. Ltd. ...................... 40,400 204,011
</TABLE>
33
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
KTM Motorradholding AG .................. 17,780 $ 1,386,491
Ladbroke Group PLC ...................... 550,000 3,021,877
Nelvana Ltd.*+ .......................... 130,000 2,822,534
Nintendo Co. Ltd. ....................... 22,100 2,048,658
Nippon Broadcasting System .............. 60,000 2,532,102
Royal Caribbean Cruises Ltd. ............ 78,000 6,201,000
SHIMANO, INC. ........................... 20,000 507,863
Tag Heuer International SA
(ADR) ................................. 143,200 1,342,500
Thomson Travel Group PLC* ............... 500,000 1,561,456
Toei Co. Ltd. ........................... 80,000 252,200
Tourism Holdings Ltd.* .................. 600,000 342,903
--------------
46,802,096
--------------
PHOTO & OPTICAL (0.8%)
Fuji Photo Film Co. ..................... 84,000 2,926,850
Gretag Imaging Group* ................... 50,400 4,838,161
Luxottica Group (ADR) ................... 100,000 1,550,000
Noritsu Koki Co. Ltd. ................... 106,200 2,374,982
--------------
11,689,993
--------------
RETAIL--GENERAL (3.4%)
Abercrombie & Fitch Co.
(Class A)* ............................ 46,950 2,065,778
Aldeasa SA .............................. 94,700 3,384,128
BAA PLC ................................. 100,000 1,080,494
Carpetright PLC ......................... 20,000 87,508
Dixons Group PLC ........................ 450,000 3,592,184
Doshisha Co. ............................ 37,000 157,214
Eiden Sakakiya Co. Ltd. ................. 65,000 250,866
Gucci Group N.V. (New York
Registered Shares) .................... 5,000 265,000
Homac Corp. ............................. 10,500 90,896
Home Centers Ltd.* ...................... 142,800 2,891,700
Home Depot, Inc. ........................ 155,600 12,924,525
Home Wide Corp. ......................... 18,000 66,224
House of Fraser PLC ..................... 520,000 1,511,022
Isetan Co. .............................. 33,000 276,151
Japan Airport Terminal Co. Ltd. . 176,800 982,081
Kokuyo Co. Ltd. ......................... 28,000 474,679
Limited, Inc. ........................... 229,575 7,604,672
Office Depot, Inc.* ..................... 93,000 2,935,313
Paris Miki, Inc. ........................ 105,400 1,384,601
Sato Corp. .............................. 137,600 2,248,334
Smith (W.H.) Group PLC .................. 225,000 1,998,998
Smith (W.H.) Group PLC
(B Shares)* ........................... 250,000 223,363
Sriwani Holdings BHD .................... 633,000 138,794
S.T. Dupont*+ ........................... 70,614 772,988
Swank International
Manufacturing Co.* .................... 1,000,000 108,415
Vendex International N.V. ............... 9,000 346,137
Warehouse Group Ltd. .................... 390,000 688,924
--------------
48,550,989
--------------
TOTAL CONSUMER CYCLICALS (13.1%) 187,467,046
--------------
CONSUMER NONCYCLICALS
BEVERAGES (0.9%)
Diageo PLC .............................. 604,800 7,171,142
Hartwall Oyj AB ......................... 41,300 1,325,807
Lion Nathan Ltd. ........................ 31,500 70,046
Louis Dreyfus Citrus .................... 69,000 2,304,754
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Panamerican Beverages, Inc. ............. 60,000 $ 1,886,250
Quilmes Industrial Quins (ADR) 76,000 741,000
--------------
13,498,999
--------------
CONTAINERS (0.3%)
Sealed Air Corp.* ....................... 106,200 3,902,850
--------------
DRUGS (6.4%)
Astra AB (A Shares) ..................... 80,000 1,634,700
Bristol-Myers Squibb Co. ................ 134,000 15,401,625
Merck & Co., Inc. ....................... 122,100 16,330,875
Novartis AG ............................. 1,358 2,261,392
Novartis AG (ADR) ....................... 20,000 1,664,016
Novo-Nordisk A/S (B Shares) ............. 15,000 2,069,568
Orion-Yhtyma Oyj (B Shares)* ............ 182,000 5,610,163
Pfizer, Inc. ............................ 75,000 8,151,563
Roche Holding AG
Genusssheine .......................... 450 4,422,214
Sankyo Co. Ltd. ......................... 320,000 7,294,763
Sanofi SA ............................... 30,000 3,527,077
Santen Pharmaceutical Co. Ltd. .......... 312,000 3,418,901
Schering Plough Corp. ................... 51,000 4,672,875
Smith & Nephew PLC ...................... 200,000 499,332
Smithkline Beecham PLC .................. 300,000 3,664,830
Taisho Pharmaceutical Co. ............... 2,000 37,368
Yamanouchi Pharmaceutical Co.
Ltd. .................................. 201,000 4,190,521
Zeneca Group PLC ........................ 180,000 7,731,463
--------------
92,583,246
--------------
FOODS (1.4%)
Avonmore Waterford Group
PLC ................................... 130,500 510,207
Barry Callebaut AG* ..................... 20,830 4,493,904
Fyffes PLC .............................. 2,800,000 6,802,759
Karlshamns AB+ .......................... 17,000 230,162
Koninklijke Numico N.V. ................. 25,000 783,209
Nestle SA ............................... 1,100 2,355,743
Nutreco Holding N.V. .................... 72,800 2,549,235
Oie Sangyo Co. Ltd. ..................... 4,000 14,457
Shriram Industrial Enterprises
Ltd. (GDR)+ ........................... 198,000 297,000
Viscofan Envoltura ...................... 49,000 2,281,448
--------------
20,318,124
--------------
HOSPITAL SUPPLIES & SERVICES (1.3%)
Australian Hospital Care Ltd. ........... 636,000 461,355
Boston Scientific Corp.* ................ 110,300 7,900,237
Coloplast A/S B ......................... 1,200 117,887
EDAP TMS S.A. (ADR)* .................... 355,000 1,664,062
Medtronic, Inc. ......................... 67,800 4,322,250
NIC Corp. ............................... 8,000 53,095
Nichii Gakkan Co. ....................... 8,000 266,051
Quest Medical, Inc.* .................... 164,543 1,563,159
United HealthCare Corp. ................. 28,000 1,778,000
--------------
18,126,096
--------------
RETAIL--FOOD (0.7%)
Daimon Co. Ltd. ......................... 10,200 25,018
Familymart Co. .......................... 78,700 2,997,663
Kesko ................................... 76,000 1,199,077
Loblaw Companies Ltd. ................... 40,000 951,378
McBride PLC ............................. 350,000 1,002,421
</TABLE>
34
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Santa Isabel S.A. (ADR) .............. 10,635 $ 116,985
Seven-Eleven Japan Co. Ltd. .......... 49,800 2,967,451
--------------
9,259,993
--------------
SOAPS & TOILETRIES (0.2%)
Kao Corp. ............................ 180,000 2,778,820
--------------
TOBACCO (3.0%)
Imperial Tobacco Group PLC ........... 341,000 2,517,068
Japan Tobacco, Inc. .................. 240 1,625,739
Loews Corp. .......................... 120,800 10,524,700
Philip Morris Cos., Inc. ............. 440,400 17,340,750
RJ Reynolds BHD ...................... 210,000 290,946
Seita ................................ 66,000 2,990,327
Swedish Match AB ..................... 1,015,385 3,373,161
Tabacalera SA-A ...................... 240,000 4,914,248
--------------
43,576,939
--------------
TOTAL CONSUMER
NONCYCLICALS (14.2%) ............ 204,045,067
--------------
CREDIT SENSITIVE
BANKS (6.0%)
Akita Bank ........................... 76,000 334,439
AMMB Holdings BHD .................... 21,000 11,031
Asahi Bank Ltd. ...................... 88,000 387,246
Banco Central
Hispanoamericano SA ................ 36,000 1,131,529
Banco Latinoamericano de
Exportaciones S.A. (E Shares) 60,000 1,845,000
Bank of Scotland ..................... 200,000 2,241,149
Bank of Tokyo-Mitsubishi Ltd. ........ 250,000 2,649,329
Barclays PLC ......................... 140,000 4,040,080
BPI-SGPS SA .......................... 56,000 1,807,929
Chase Manhattan Corp. ................ 218,976 16,532,688
Citicorp ............................. 50,000 7,462,500
Corporacion Bancaria de Espana
SA ................................. 200,000 4,486,469
Credito Italiano Spa ................. 200,000 1,047,359
Dai-Ichi Kangyo Bank Ltd. ............ 318,000 1,869,644
Erste Bank Der
Oesterreichischen
Sparkassen AG ...................... 37,400 2,268,363
First Union Corp. .................... 139,000 8,096,750
Forenings Sparbanken AB
(A Shares) ......................... 9,700 291,839
Grupo Financiero Banamex
Accival (B Shares)* ................ 150,000 283,966
Grupo Financiero Banorte
(Class B)* ......................... 178,750 193,254
HSBC Holdings PLC (H.K.$) ............ 60,000 1,467,475
Mitsubishi Trust & Banking
Corp. .............................. 65,000 552,842
National Westminster Bank PLC 50,000 894,289
NationsBank Corp. .................... 197,100 15,078,150
Nordbanken Holding AB+ ............... 300,000 2,200,075
Overseas-Chinese Bank ................ 44,000 149,748
Shizuoka Bank Ltd. ................... 21,000 225,725
Skandinaviska Enskilda Banken
(Series A) ......................... 125,330 2,144,609
Societe Generale ..................... 15,000 3,117,817
Sparebanken NOR ...................... 8,600 246,836
Sumitomo Bank Ltd. ................... 166,000 1,616,650
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Toho Bank ............................ 124,000 $ 498,254
United Overseas Bank Ltd. ............ 160,000 497,189
--------------
85,670,223
--------------
FINANCIAL SERVICES (5.5%)
Aiful Corp. .......................... 78,400 3,828,942
American Express Co. ................. 103,600 11,810,400
Americredit Corp.* ................... 186,700 6,662,856
Amvescap PLC ......................... 260,000 2,540,080
Associates First Capital Corp.
(Class A) .......................... 67,000 5,150,625
CIT Group, Inc. ...................... 45,700 1,713,750
CMIC Finance & Securities
Public Co. Ltd.* ................... 724,700 0
Credit Saison Co. .................... 354,450 7,031,723
Dexia France ......................... 10,000 1,346,011
Fleet Financial Group, Inc. .......... 700 58,450
Hong Leong Finance Ltd. .............. 160,000 130,690
JCG Holdings Ltd. .................... 142,000 39,404
MBNA Corp. ........................... 578,100 19,077,300
Morgan Stanley Dean Witter
& Co. .............................. 56,800 5,190,100
Newcourt Credit Group, Inc. .......... 111,000 5,459,813
Nichiei Co. Ltd. ..................... 53,800 3,663,771
PMI Group, Inc. ...................... 57,000 4,182,375
PT Bunas Finance Indonesia* .......... 800,000 4,068
Sanyo Shinpan Finance Co. Ltd. ....... 18,000 636,272
Takefuji Corp. ....................... 7,800 360,121
--------------
78,886,751
--------------
INSURANCE (6.7%)
Acceptance Insurance Cos., Inc.* 30,100 739,331
Aegon N.V. ........................... 70,000 6,093,543
American International
Group, Inc. ........................ 179,375 26,188,750
ASR Verzekeringsgroep N.V. ........... 90,000 7,639,797
Corporacion Mapfre ................... 116,900 4,101,219
Fairfax Financial Holdings Ltd.* ..... 4,000 1,560,260
Fortis Amev N.V. ..................... 82,381 4,825,445
ING Groep N.V. ....................... 90,000 5,895,834
Irish Life PLC ....................... 175,000 1,628,786
Koa Fire & Marine .................... 21,000 80,897
Mediolanum Spa+ ...................... 15,000 476,124
Norwich Union PLC .................... 250,000 1,816,132
Pacific & Orient BHD ................. 220,000 102,307
Progressive Corp. .................... 19,500 2,749,500
QBE Insurance Group Ltd. ............. 10,000 35,340
Skandia Forsakrings AB ............... 130,000 1,857,841
Travelers Group, Inc. ................ 424,699 25,747,377
20th Century Industries .............. 186,000 5,335,875
--------------
96,874,358
--------------
REAL ESTATE (2.4%)
Arden Realty, Inc. ................... 193,100 4,996,463
Asticus AB* .......................... 176,320 1,945,112
Boston Properties, Inc. .............. 83,600 2,884,200
Castellum AB ......................... 288,000 3,393,757
Cheung Kong Holdings ................. 126,000 619,592
City Developments Ltd. ............... 115,000 321,279
Daibiru Corp. ........................ 46,000 296,667
Entertainment Properties Trust ....... 136,000 2,482,000
JP Realty, Inc. ...................... 87,300 2,057,006
Macerich Co. ......................... 151,700 4,446,706
</TABLE>
35
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Mandamus AB* ......................... 485 $ 3,040
MEPC PLC ............................. 210,000 1,848,196
Pernas International Hotels
Holdings BHD ....................... 640,000 121,053
Prentiss Properties Trust ............ 85,000 2,066,563
SAP Holdings BHD ..................... 66,000 14,312
Singapore Land Ltd. .................. 300,000 628,588
Sino Land Co. ........................ 1,850,000 644,683
Spieker Properties, Inc. ............. 82,700 3,204,625
Sumitomo Realty &
Development Co. Ltd. ............... 364,000 1,607,041
Sun Communities, Inc. ................ 41,000 1,358,125
--------------
34,939,008
--------------
UTILITY--ELECTRIC (2.4%)
British Energy PLC ................... 320,000 2,800,267
Cia Paranaense de Energia-Copel
(ADR) .............................. 356,000 3,293,000
Electricidade de Portugal SA ......... 127,005 2,953,637
Enersis S.A. (ADR) ................... 45,000 1,099,687
EVN-Energie-Versorgung
Niederoesterreich AG ............... 8,000 1,197,495
Gas Y Electridad SA (Series 2) ....... 5,000 380,502
Hidroelectrica del Cantabrico ........ 26,000 1,186,827
Iberdrola SA ......................... 270,000 4,384,089
Korea Electric Power (ADR) ........... 15,000 106,875
National Grid Group PLC .............. 850,000 5,734,803
National Power PLC ................... 420,000 3,955,912
Veba AG .............................. 50,000 3,410,036
Viag AG .............................. 5,000 3,382,312
--------------
33,885,442
--------------
UTILITY--GAS (0.3%)
Sociedad General de Aguas de
Barcelona SA ....................... 89,900 5,012,357
--------------
UTILITY--TELEPHONE (1.9%)
Electric Lightwave, Inc.* ............ 178,700 1,976,869
Empresas Telex-Chile S.A.
(ADR)* ............................. 70,000 100,625
Hellenic Telecommunication
Organization SA .................... 58,379 1,498,217
Magyar Tavkozlesi Rt (ADR) ........... 218,000 6,417,375
Portugal Telecom SA .................. 31,680 1,679,740
PT Indosat (ADR) ..................... 40,000 445,000
Telecom Italia Spa ................... 50,000 368,208
Telefonica de Espana ................. 100,000 4,623,410
Telephone & Data Systems, Inc. ....... 46,700 1,838,813
Teleport Communications Group,
Inc. (Class A)* .................... 126,000 6,835,500
Videsh Sanchar Nigam Ltd.
(GDR)*+ ............................ 160,000 1,496,000
--------------
27,279,757
--------------
TOTAL CREDIT SENSITIVE (25.2%) 362,547,896
--------------
ENERGY
COAL & GAS PIPELINES (0.2%)
OMV AG ............................... 20,000 2,679,690
--------------
OIL--DOMESTIC (0.1%)
Union Pacific Resources Group,
Inc. ............................... 79,300 1,392,706
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
OIL--INTERNATIONAL (0.4%)
Canadian Occidental .................. 8,000 $ 172,000
Orogen Minerals Ltd. ................. 310,000 413,231
Renaissance Energy Ltd.* ............. 60,000 899,052
Repsol SA ............................ 65,000 3,581,676
Southern Pacific Petroleum ........... 850,000 1,054,002
--------------
6,119,961
--------------
OIL--SUPPLIES & CONSTRUCTION (3.1%)
BJ Services Co.* ..................... 104,000 3,022,500
Bouygues Offshore SA (ADR) ........... 86,000 1,816,750
Canadian Fracmaster Ltd.
Installment Receipt+ ............... 571,500 1,942
Coflexip (ADR) ....................... 65,000 3,973,125
Dresser Industries, Inc. ............. 240,100 10,579,406
Fugro N.V. ........................... 80,000 3,186,937
Halliburton Co. ...................... 188,800 8,413,400
Nabors Industries, Inc.* ............. 35,000 693,438
Noble Drilling Corp.* ................ 247,000 5,943,438
Santa Fe International Corp. ......... 84,500 2,556,125
Transocean Offshore, Inc. ............ 85,000 3,782,500
Tubos de Acero de Mexico SA
(ADR) .............................. 10,000 128,125
--------------
44,097,686
--------------
TOTAL ENERGY (3.8%) ................ 54,290,043
--------------
TECHNOLOGY
ELECTRONICS (7.6%)
Austria Mikro Systeme
International AG ................... 4,000 270,962
Cisco Systems, Inc.* ................. 382,950 35,255,334
EMC Corp.* ........................... 35,000 1,568,438
Enplas Corp. ......................... 10,000 176,021
Fujimi, Inc. ......................... 54,400 1,993,594
Micronics Japan Co. Ltd. ............. 68,000 956,572
Navia ASA* ........................... 80,000 271,363
Network Associates, Inc.* ............ 182,000 8,713,250
Nikon Corp. .......................... 133,000 957,539
PairGain Technologies, Inc.* ......... 363,100 6,331,556
Rohm Co. Ltd. ........................ 27,000 2,775,574
Sankyo Engineering Co. ............... 1,000 3,888
Sanmina Corp.* ....................... 216,000 9,369,000
SCI Systems, Inc.* ................... 123,400 4,642,925
Solectron Corp.* ..................... 88,200 3,709,913
Sterling Commerce, Inc.* ............. 273,660 13,272,510
TDK Corp. ............................ 34,000 2,514,067
Texas Instruments, Inc. .............. 195,000 11,370,938
Tokyo Cathode Laboratory Co. ......... 28,600 224,888
Tokyo Electron ....................... 10,000 306,594
Xilinx, Inc.* ........................ 41,000 1,394,000
Yamaichi Electronics Co. Ltd. ........ 17,000 348,290
Yokogawa Electric Corp. .............. 353,000 1,884,432
--------------
108,311,648
--------------
OFFICE EQUIPMENT (3.0%)
Canon, Inc. .......................... 4,000 90,896
Ceridian Corp.* ...................... 342,700 20,133,625
Ricoh Elemex Corp. ................... 24,000 169,673
Sterling Software, Inc.* ............. 767,200 22,680,350
--------------
43,074,544
--------------
</TABLE>
36
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT SERVICES (0.9%)
Data Communication System Co. 53,000 $ 955,851
Fuji Soft ABC, Inc. ........................ 60,200 2,049,805
INES Corp. ................................. 86,000 589,381
Misys PLC .................................. 130,000 7,392,285
Nippon System Development .................. 57,900 1,378,372
Turbon International AG .................... 27,500 603,063
--------------
12,968,757
--------------
TELECOMMUNICATIONS (8.3%)
ADC Telecommunications, Inc.* 144,000 5,260,500
Corecomm, Inc.* ............................ 7,600 199,500
DDI Corp. .................................. 384 1,337,989
Energis PLC* ............................... 420,000 6,396,794
E.R.G. Limited* ............................ 2,480,000 1,368,467
Filtronic Comtek PLC ....................... 1,199,000 8,009,352
FORE Systems, Inc.* ........................ 100,000 2,650,000
Global TeleSystems Group, Inc.* 30,000 1,462,500
Helsinki Telephone Corp. ................... 91,710 4,265,542
MCI Communications Corp. ................... 20,000 1,162,500
NetCom Systems AB (B Shares)* 60,000 2,297,856
Nextel Communications, Inc.
(Class A)* ............................... 258,700 6,435,163
SK Telecom Co. Ltd. (ADR) .................. 280,001 1,557,504
Tadiran Telecommunications Ltd. 130,000 1,933,750
Tele-Communications TCI
Ventures Group (Class A)* ................ 885,350 17,762,334
Tellabs, Inc.* ............................. 28,000 2,005,500
Vodafone Group PLC ......................... 500,000 6,350,200
WorldCom, Inc.* ............................ 1,015,219 49,174,670
--------------
119,630,121
--------------
TOTAL TECHNOLOGY (19.8%) ................. 283,985,070
--------------
DIVERSIFIED
MISCELLANEOUS (1.6%)
Brierley Investments Ltd. .................. 27,900 13,481
BTR PLC .................................... 138,125 392,138
Crean (James) PLC--Units ................... 495,000 1,078,221
Hagemeyer N.V. ............................. 41,000 1,774,455
Lippo China Resources Ltd. ................. 2,000,000 126,484
Sime Darby BHD ............................. 800,000 551,292
Swire Pacific Ltd. (Class A) ............... 140,000 528,524
Taiwan Fund, Inc. .......................... 15,000 201,563
Tomkins PLC ................................ 350,000 1,901,094
Tyco International Ltd. .................... 154,984 9,763,992
Vivendi .................................... 30,000 6,404,299
--------------
TOTAL DIVERSIFIED (1.6%) ................. 22,735,543
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (91.0%)
(Cost $1,028,633,923)...................... 1,306,858,507
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.1%)
Republic Industries, Inc.
6.5% Exch. Conv. ......................... 50,000 1,200,000
--------------
PRINTING, PUBLISHING &
BROADCASTING (0.6%)
ProSieben Media AG* ........................ 48,000 2,496,479
Readers Digest "TRACES" .................... 228,000 5,871,000
--------------
8,367,479
--------------
TOTAL BUSINESS SERVICES (0.7%)............ 9,567,479
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS (0.0%)
LEISURE RELATED
Village Roadshow Ltd. ...................... 440,000 $ 654,721
--------------
CREDIT SENSITIVE (0.3%)
BANKS
Bank Austria AG ............................ 51,200 4,157,946
--------------
TECHNOLOGY (0.5%)
TELECOMMUNICATIONS
Nokia Oyj (A Shares) ....................... 88,000 6,476,548
--------------
TOTAL PREFERRED STOCKS (1.5%)
(Cost $13,728,166) ........................ 20,856,694
--------------
PRINCIPAL
AMOUNT
---------
LONG-TERM DEBT SECURITIES:
CONSUMER NONCYCLICALS (0.1%)
FOODS
Burns, Philp & Co. Ltd.
5.5% Conv., 04/30/04 ..................... $ 2,000,000 1,150,000
--------------
CREDIT SENSITIVE
BANKS (0.0%)
Grupo Financiero Banorte
Zero Coupon, 12/05/02 .................... 165,700 18,430
--------------
UTILITY--ELECTRIC (0.0%)
National Grid Group PLC
4.25% Conv., 02/17/08 .................... 232,000 391,723
--------------
TOTAL CREDIT SENSITIVE (0.0%) ............ 410,153
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.1%)
(Amortized Cost $2,157,045) .............. 1,560,153
--------------
SHORT-TERM DEBT
SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.:
5.85%, due 07/01/98 ....................... 22,900,000 22,900,000
5.5%, due 07/23/98 ........................ 11,000,000 10,963,162
Federal National Mortgage
Association:
5.6%, due 07/06/98 ........................ 25,000,000 24,980,555
5.56%, due 07/07/98 ....................... 4,700,000 4,695,645
5.51%, due 07/21/98 ....................... 20,000,000 19,938,778
5.48%, due 07/29/98 ....................... 6,000,000 5,974,520
--------------
TOTAL U.S. GOVERNMENT
AGENCIES (6.2%) .......................... 89,452,660
--------------
TOTAL SHORT-TERM DEBT
SECURITIES (6.2%) ........................
(Amortized Cost $89,452,660) .............. 89,452,660
--------------
TOTAL INVESTMENTS (98.8%)
(Cost/Amortized Cost
$1,133,971,794)........................... 1,418,728,014
--------------
OTHER ASSETS
LESS LIABILITIES (1.2%) ................... 17,608,060
--------------
NET ASSETS (100.0%) ........................ $1,436,336,074
==============
</TABLE>
37
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
- ----------
* 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, 1998, these securities amounted to $24,434,728 or
1.7% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
38
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
ARGENTINA (0.0%)
Quilmes Industrial Quins (ADR) 10,000 $ 97,500
-----------
AUSTRALIA
Brambles Industries Ltd. ............ 60,000 1,178,870
Broken Hill Proprietary Co. Ltd. 30,000 253,891
E.R.G. Limited* ..................... 1,000,000 551,801
GIO Australia Holdings Ltd. ......... 200,000 513,857
Great Central Mines Ltd. ............ 60,000 57,288
Hoyts Cinemas Group+ ................ 450,000 585,901
National Australia Bank Ltd. ........ 4,900 64,710
News Corp. Ltd. ..................... 5,900 48,213
Oil Search Ltd. ..................... 360,000 544,609
Orogen Minerals Ltd. (GDR)+ ......... 50,000 667,300
QBE Insurance Group Ltd. ............ 20,000 70,680
QCT Resources Ltd. .................. 200,000 132,680
Southern Pacific Petroleum* ......... 250,000 310,001
Spectrum Network Systems
Ltd.*+ ............................ 450,000 223,200
Westralian Sands Ltd. ............... 11,472 23,827
WMC Ltd. ............................ 22,000 66,291
-----------
TOTAL AUSTRALIA (2.4%) ............ 5,293,119
-----------
AUSTRIA
Erste Bank Der
Oesterreichischen
Sparkassen AG ..................... 5,610 340,254
KTM Motorradholding AG .............. 10,000 779,804
Mayr-Melnhof Karton AG+ ............. 20,000 1,307,550
OMV AG .............................. 3,000 401,953
-----------
TOTAL AUSTRIA (1.3%) .............. 2,829,561
-----------
BELGIUM
Electrabel SA ....................... 250 70,863
Petrofina SA ........................ 110 45,144
Tractebel Investment
International Capital ............. 350 51,249
Virgin Express Holdings PLC
(ADR)* ............................ 50,000 646,875
-----------
TOTAL BELGIUM (0.4%) .............. 814,131
-----------
BRAZIL (0.5%)
Cia Paranaense de Energia-Copel
(ADR) ............................. 115,000 1,063,750
-----------
CANADA
Canadian Fracmaster Ltd.+ ........... 214,300 728
Cinar Films, Inc. (Class B)* ........ 16,000 312,000
Leitch Technology Corp.* ............ 18,900 317,879
National Bank of Canada ............. 50,000 976,861
Renaissance Energy Ltd.* ............ 20,000 299,684
-----------
TOTAL CANADA (0.9%) ............... 1,907,152
-----------
CHILE (0.0%)
Enersis S.A. (ADR) .................. 1,000 24,438
-----------
DENMARK
Carli Gry International A/S ......... 17,000 1,373,162
Coloplast A/S B ..................... 6,000 589,434
Novo-Nordisk A/S (B Shares) ......... 4,000 551,885
Vestas Wind Systems A/S* ............ 5,300 209,424
-----------
TOTAL DENMARK (1.2%) .............. 2,723,905
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
FINLAND
Amer Group Ltd. (Series A)* ......... 20,000 $ 386,682
Hartwall Oyj AB ..................... 40,700 1,306,545
Helsinki Telephone Corp. ............ 30,500 1,418,592
Kesko ............................... 28,000 441,765
Nokia Oyj (A Shares) ................ 6,000 435,375
Orion-Yhtyma Oyj (B Shares)* ........ 56,000 1,726,204
Rauma Oyj ........................... 13,900 285,223
-----------
TOTAL FINLAND (2.7%) .............. 6,000,386
-----------
FRANCE
Accor SA ............................ 5,500 1,538,818
Alcatel Alsthom ..................... 3,500 712,443
Banque Nationale de Paris ........... 700 57,181
Bouygues Offshore SA (ADR) .......... 27,000 570,375
Canal Plus .......................... 5,260 982,852
Cie de St. Gobain ................... 250 46,341
Cie Generale de Geophysique
SA (ADR)* ......................... 68,000 1,997,500
Coflexip (ADR) ...................... 3,000 183,000
EDAP TMS SA (ADR)* .................. 110,000 515,625
Groupe Danone ....................... 500 137,826
Havas ............................... 350 29,690
Lafarge SA .......................... 6,000 620,091
L'Air Liquide ....................... 619 102,315
L'Oreal ............................. 495 275,268
Louis Dreyfus Citrus ................ 20,000 668,045
Michelin (CGDE), (Class B) .......... 7,000 403,969
Moulinex* ........................... 35,000 908,061
Paribas* ............................ 750 80,240
Peugeot SA .......................... 250 53,741
Pinault Printemps ................... 150 125,506
Rhodia SA* .......................... 8,230 229,447
Sanofi SA ........................... 10,000 1,175,692
Schneider SA ........................ 800 63,775
Seita ............................... 18,000 815,544
Societe Generale .................... 4,000 831,418
S.T. Dupont*+ ....................... 34,900 382,039
Suez Lyonnaise des Eaux ............. 400 65,812
Vivendi ............................. 7,000 1,494,336
-----------
TOTAL FRANCE (6.7%) ............... 15,066,950
-----------
GERMANY
Allianz AG .......................... 1,500 494,871
Apcoa Parking AG .................... 800 57,666
Bayer AG ............................ 4,500 232,298
B.U.S. Berzelius Umwelt-Service
AG ................................ 25,200 521,187
Daimler-Benz AG ..................... 2,000 196,285
Deutsche Bank AG .................... 3,250 275,444
Dresdner Bank AG .................... 2,850 153,759
Gerresheimer Glas AG ................ 25,000 375,658
Global TeleSystems Group, Inc.* 10,000 487,500
Lufthansa AG ........................ 20,000 502,356
Rofin-Sinar Technologies, Inc.* ..... 35,000 621,250
RWE AG .............................. 1,850 109,759
SAP AG .............................. 300 182,146
Schering AG ......................... 400 47,175
SGL Carbon AG+ ...................... 8,000 935,958
Siemens AG .......................... 2,500 152,204
</TABLE>
39
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Turbon International AG .............. 3,000 $ 65,789
Veba AG .............................. 10,000 682,007
Viag AG .............................. 1,650 1,116,163
-----------
TOTAL GERMANY (3.2%) ............... 7,209,475
-----------
GREECE
A.G. Petzetakis SA* .................. 200,000 1,059,454
Hellenic Telecommunication
Organization SA .................... 16,798 431,109
-----------
TOTAL GREECE (0.7%) ................ 1,490,563
-----------
HONG KONG
Aeon Credit Service (Asia) Co.
Ltd. ............................... 924,000 141,915
Cheung Kong Holdings ................. 90,000 442,566
Cosco Pacific Ltd. ................... 80,000 28,652
Hang Seng Bank ....................... 5,000 28,265
HSBC Holdings PLC (H.K.$) ............ 14,000 342,411
Hutchison Whampoa .................... 12,000 63,345
JCG Holdings Ltd. .................... 250,000 69,373
Swire Pacific Ltd. (Class A) ......... 40,000 151,007
Television Broadcasts Ltd. ........... 86,000 227,543
-----------
TOTAL HONG KONG (0.7%) ............. 1,495,077
-----------
HUNGARY (0.9%)
Magyar Tavkozlesi Rt (ADR) ........... 70,000 2,060,625
-----------
INDIA
Videsh Sanchar Nigam Ltd.
(GDR)* ............................. 47,000 439,450
Videsh Sanchar Nigam Ltd.
(GDR)*+ ............................ 5,000 51,750
-----------
TOTAL INDIA (0.2%) ................. 491,200
-----------
INDONESIA
Gulf Indonesia Resources Ltd.* ....... 49,900 573,850
PT Bunas Finance Indonesia* .......... 200,000 1,017
PT Citatah ........................... 377,500 17,915
PT Great River International ......... 1,367,000 34,754
PT Indosat (ADR) ..................... 12,000 133,500
-----------
TOTAL INDONESIA (0.3%) ............. 761,036
-----------
IRELAND
Avonmore Waterford Group
PLC ................................ 200,000 781,926
Crean (James) PLC--Units ............. 60,000 130,694
Fyffes PLC ........................... 900,000 2,186,601
Irish Continental Group PLC .......... 20,000 321,148
Irish Life PLC ....................... 200,000 1,885,945
Jefferson Smurfit Group PLC .......... 200,000 597,863
Unidare PLC* ......................... 201,000 729,705
-----------
TOTAL IRELAND (3.0%) ............... 6,633,882
-----------
ISRAEL (0.1%)
Home Centers Ltd.* ................... 15,400 311,850
-----------
ITALY
Assicurazioni Generali ............... 6,380 207,538
Banca Commerciale Italiana ........... 10,000 59,825
Banca Nazionale del Lavoro
(BNL)* ............................. 8,000 211,610
Credito Italiano Spa ................. 40,000 209,472
Fiat Spa ............................. 22,000 96,328
Gildemeister Italiana Spa ............ 46,300 202,857
Industrie Natuzzi Spa (ADR) .......... 20,000 520,000
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Istituto Mobiliare Italiano .......... 2,500 $ 39,396
Istituto Naz Delle Assicurazioni ..... 22,500 63,947
Mediaset Spa ......................... 140,000 893,885
Mediolanum Spa+ ...................... 4,000 126,966
Parmalat Finanziaria Spa ............. 300,000 612,038
Seat Spa* ............................ 2,500,000 1,688,381
Telecom Italia Spa ................... 10,000 73,642
Zucchini Spa ......................... 70,000 486,535
-----------
TOTAL ITALY (2.5%) ................. 5,492,420
-----------
JAPAN
Aiful Corp. .......................... 24,900 1,216,080
Akita Bank ........................... 21,000 92,411
Asahi Bank Ltd. ...................... 26,000 114,414
Asahi Diamond Industry Co.
Ltd. ............................... 15,000 67,631
Asahi Glass Co. Ltd. ................. 2,000 10,821
Bank of Tokyo-Mitsubishi Ltd. ........ 70,000 741,812
Bridgestone Corp. .................... 4,000 94,647
Canon, Inc. .......................... 2,000 45,448
Credit Saison Co. .................... 110,300 2,188,176
Dai Nippon Printing Co. Ltd. ......... 3,000 47,937
Daibiru Corp. ........................ 14,000 90,290
Dai-Ichi Kangyo Bank Ltd. ............ 86,000 505,627
Daito Trust Construction Co.
Ltd. ............................... 20,000 151,493
Data Communication System Co. 17,000 306,594
DDI Corp. ............................ 115 400,700
Denso Corp. .......................... 4,000 66,368
Doshisha Co. ......................... 1,000 4,249
Eiden Sakakiya Co. Ltd. .............. 13,000 50,173
Enplas Corp. ......................... 2,000 35,204
Enshu* ............................... 20,000 34,627
Familymart Co. ....................... 24,600 937,008
Fanuc Ltd. ........................... 900 31,164
Fuji Bank Ltd. ....................... 11,000 49,120
Fuji Photo Film Co. .................. 29,000 1,010,460
Fuji Soft ABC, Inc. .................. 19,800 674,188
Fujikura Ltd. ........................ 104,000 463,656
Fujimi, Inc. ......................... 17,500 641,322
Homac Corp. .......................... 3,000 25,970
Home Wide Corp. ...................... 15,000 55,187
Honda Motor Co. Ltd. ................. 12,000 427,644
Imagineer Co. Ltd. ................... 11,800 59,587
INES Corp. ........................... 27,000 185,038
Isetan Co. ........................... 10,000 83,682
Ishihara Sangyo Kaisha Ltd.* ......... 30,000 41,553
Ishikawajima Harima Heavy
Industries Co. Ltd. ................ 48,000 87,606
Japan Airport Terminal Co. Ltd. 51,000 283,293
Japan Industrial Land
Development ........................ 13,000 21,570
Japan Tobacco, Inc. .................. 80 541,913
Kaneshita Construction ............... 12,000 62,502
Kao Corp. ............................ 62,000 957,149
Kawasaki Heavy Industries Ltd. ....... 96,000 193,911
Kawasaki Steel Corp. ................. 10,000 18,035
Keyence Corp. ........................ 8,600 936,806
Kikuchi Co. Ltd. ..................... 10,000 27,846
King Co. ............................. 32,000 45,015
Koa Fire & Marine Insurance
Co. Ltd. ........................... 8,000 30,818
Kokuyo Co. Ltd. ...................... 9,000 152,575
</TABLE>
40
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Mabuchi Motor Co. .................. 1,200 $ 76,179
Matsuda Sangyo Co. Ltd. ............ 6,000 46,314
Meitec ............................. 18,600 644,063
Micronics Japan Co. Ltd. ........... 18,000 253,210
Minebea Co. Ltd. ................... 74,000 737,224
Mitsubishi Heavy Industries Ltd. 92,000 347,771
Mitsubishi Trust & Banking
Corp. ............................ 20,000 170,105
Mitsui Home Co. Ltd. ............... 16,000 71,678
Murata Manufacturing Co., Ltd. ..... 5,000 162,314
Namura Shipbuilding ................ 5,000 11,759
Nanno Construction Co. Ltd. ........ 12,000 16,448
NIC Corp. .......................... 14,000 92,916
Nichiei Co. Ltd. ................... 17,200 1,171,317
Nichiha Corp. ...................... 44,500 262,917
Nichii Gakkan Co. .................. 5,000 166,282
Nikon Corp. ........................ 41,000 295,181
Nintendo Co. Ltd. .................. 7,000 648,896
Nippon Broadcasting System ......... 18,000 759,631
Nippon Denwa Shisetsu .............. 15,000 50,317
Nippon Paper Industries Co. ........ 14,000 58,375
Nippon Steel Corp. ................. 10,000 17,602
Nippon System Development .......... 18,000 428,510
Nippon Television Network
Corp. ............................ 1,170 339,302
Nireco ............................. 8,000 39,244
Nitta Corp. ........................ 31,000 199,033
Nitto Kohki Co. Ltd. ............... 25,100 271,425
Nomura Securities Co. .............. 8,000 93,204
Noritsu Koki Co. Ltd. .............. 31,600 706,680
Ohmoto Gumi Co. Ltd. ............... 9,000 51,941
Oie Sangyo Co. Ltd. ................ 13,000 46,985
Oriental Construction Co. .......... 3,400 16,826
Paris Miki, Inc. ................... 33,900 445,332
PS Corp. ........................... 18,900 77,171
Ricoh Elemex Corp. ................. 8,000 56,558
Rohm Co. Ltd. ...................... 8,000 822,392
Sankyo Co. Ltd. .................... 101,000 2,302,409
Santen Pharmaceutical Co. Ltd. ..... 88,000 964,305
Sanyo Engineering &
Construction Co. ................. 9,000 34,151
Sanyo Pax Co. Ltd. ................. 24,000 136,777
Sanyo Shinpan Finance Co. Ltd. ..... 4,900 173,207
Sato Corp. ......................... 43,800 715,676
Seven-Eleven Japan Co. Ltd. ........ 13,600 810,388
SHIMANO, INC. ...................... 10,000 253,932
Shizuoka Bank Ltd. ................. 8,000 85,991
Sho-Bond Corp. ..................... 39,200 715,452
SMC Corp. .......................... 17,000 1,293,825
Sodick Co.* ........................ 86,000 248,160
Sony Corp. ......................... 1,000 86,207
Suido Kiko Kaisha .................. 4,000 10,677
Sumitomo Bank Ltd. ................. 68,000 662,242
Sumitomo Metal Industries .......... 198,000 318,525
Sumitomo Realty &
Development Co. Ltd. ............. 104,000 459,155
Taisho Pharmaceutical Co. .......... 4,000 74,737
Takara Printing Co. ................ 3,000 10,778
Takefuji Corp. ..................... 2,460 113,577
Takihyo Co. Ltd. ................... 10,000 44,727
TDK Corp. .......................... 10,000 739,432
Toda Corp. ......................... 13,000 52,049
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Toei Co. Ltd. ...................... 26,000 $ 81,965
Toho Bank .......................... 39,000 156,709
Toho Titanium ...................... 37,000 288,270
Tokio Marine & Fire Insurance
Co. .............................. 3,000 30,861
Tokyo Broadcasting System, Inc. 65,000 726,807
Tokyo Cathode Laboratory Co.* 19,700 154,905
Tokyo Electron ..................... 1,000 30,659
Toso Co. Ltd. ...................... 18,000 77,911
Toyoda Gosei ....................... 20,000 58,433
Wesco, Inc. ........................ 3,200 8,541
Yamaichi Electronics Co. Ltd. ...... 14,000 286,827
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 62,000 1,292,598
Yamato Transport Co. Ltd. .......... 28,000 314,096
Yokogawa Electric Corp. ............ 96,000 512,480
-----------
TOTAL JAPAN (17.1%) .............. 38,291,863
-----------
KOREA (0.2%)
SK Telecom Co. Ltd. (ADR) .......... 60,000 333,750
-----------
MALAYSIA
AMMB Holdings BHD .................. 40,000 21,011
Arab Malaysian Finance BHD ......... 140,000 28,167
Guinness Anchor BHD ................ 30,000 31,805
Hong Leong Bank BHD ................ 140,000 80,284
Kumpulan Guthrie BHD ............... 26,000 15,035
Lingkaran Trans Kota Holdings
BHD* ............................. 130,000 90,211
Malayan Banking BHD ................ 48,000 48,344
Mancon BHD ......................... 76,666 7,020
Metacorp BHD* ...................... 120,000 34,697
Pernas International Hotels
Holdings BHD ..................... 462,000 87,385
Resorts World BHD .................. 20,000 21,975
RJ Reynolds BHD .................... 60,000 83,128
Sime Darby BHD ..................... 150,000 103,367
Sriwani Holdings BHD ............... 157,000 34,424
Star Publications BHD .............. 25,000 20,963
Talam Corp. BHD .................... 200,000 38,070
Tanjong PLC ........................ 100,000 138,546
UMW Holdings BHD ................... 150,000 67,225
-----------
TOTAL MALAYSIA (0.4%) ............ 951,657
-----------
MEXICO
Elamex S.A. de C.V.* ............... 30,000 178,125
Grupo Electra, S.A. de C.V. ........ 500,000 491,630
Grupo Financiero Banamex
Accival (B Shares)* .............. 50,000 94,655
Grupo Industrial Saltillo SA
(B Shares) ....................... 236,000 800,623
Grupo Televisa S.A. (GDR)* ......... 36,000 1,354,500
Industrias CH S.A. (B Shares)* ..... 120,000 393,749
Kimberly-Clark de Mexico, S.A.
de C.V. .......................... 30,000 520,806
Panamerican Beverages, Inc. ........ 10,000 314,375
Sanluis Corporacion S.A. de C.V. 28,000 107,447
-----------
TOTAL MEXICO (1.9%) .............. 4,255,910
-----------
NETHERLANDS
ABN Amro Holding N.V. .............. 5,824 136,341
Aegon N.V. ......................... 16,000 1,392,810
Akzo Nobel N.V. .................... 5,000 1,111,985
</TABLE>
41
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
ASR Verzekeringsgroep N.V. .......... 21,400 $ 1,816,574
Content Beheer N.V. ................. 30,000 1,025,427
Elsevier N.V. ....................... 16,955 255,997
Fortis Amev N.V. .................... 10,000 585,747
Fugro N.V. .......................... 30,000 1,195,102
Gucci Group N.V. (New York
Registered Shares) ................ 2,000 106,000
Hagemeyer N.V. ...................... 12,000 519,353
Hunter Douglas N.V. ................. 6,000 326,071
IHC Caland N.V. ..................... 12,000 675,749
ING Groep N.V. ...................... 28,000 1,834,260
Koninklijke Nedlloyd Groep N.V. 2,250 45,701
Koninklijke Numico N.V. ............. 19,000 595,239
Nutreco Holding N.V. ................ 22,100 773,875
Royal Dutch Petroleum Co. ........... 9,948 551,878
Unilever N.V. CVA ................... 2,968 235,595
Unique International N.V. ........... 20,000 678,700
Vedior N.V. ......................... 40,000 1,131,166
------------
TOTAL NETHERLANDS (6.7%) .......... 14,993,570
------------
NEW ZEALAND
Air New Zealand Ltd. (B Shares) 109,000 117,226
Restaurant Brands New Zealand
Ltd. .............................. 312,500 150,994
Sky City Ltd. ....................... 35,300 87,116
Warehouse Group Ltd. ................ 110,000 194,312
------------
TOTAL NEW ZEALAND (0.2%) .......... 549,648
------------
NORWAY
Alvern Norway ASA* .................. 83,000 102,870
Choice Hotels Scandinavia ASA* 472,500 1,417,808
Navia ASA* .......................... 94,000 318,852
Norsk Hydro ASA ..................... 1,100 48,434
ProSafe ASA* ........................ 14,000 230,137
Schibsted ASA ....................... 25,000 420,744
Sparebanken NOR ..................... 12,000 344,423
Tomra Systems ASA ................... 58,000 1,740,378
------------
TOTAL NORWAY (2.1%) ............... 4,623,646
------------
PANAMA (0.2%)
Banco Latinoamericano de
Exportaciones S.A. (E Shares) 15,000 461,250
------------
PERU (0.5%)
Telefonica del Peru S.A. (ADR) ...... 54,000 1,103,625
------------
PORTUGAL
BPI-SGPS SA ......................... 20,000 645,689
Electricidade de Portugal SA ........ 40,000 930,243
Portugal Telecom SA ................. 8,710 461,822
Telecel Comunicacoes Pessoais
SA ................................ 13,000 2,309,359
------------
TOTAL PORTUGAL (1.9%) ............. 4,347,113
------------
SINGAPORE
City Developments Ltd. .............. 50,000 139,686
GP Batteries International Ltd. ..... 140,000 255,224
Great Eastern Life Assurance
Co. ............................... 7,000 38,947
Singapore Land Ltd. ................. 93,000 194,862
United Overseas Bank Ltd. ........... 40,000 124,297
------------
TOTAL SINGAPORE (0.3%) ............ 753,016
------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
SPAIN
Aldeasa SA .......................... 31,500 $ 1,125,660
Banco Bilbao Vizcaya SA ............. 4,881 250,495
Banco Central Hispanoamericano
SA ................................ 14,000 440,039
Banco Santander SA .................. 6,936 177,527
Catalana Occidente SA+ .............. 43,200 1,366,286
Corporacion Bancaria de Espana
SA ................................ 72,000 1,615,129
Corporacion Mapfre .................. 33,300 1,168,269
Endesa SA ........................... 4,488 98,189
Gas Y Electridad SA (Series 2) ...... 14,000 1,065,406
Hidroelectrica del Cantabrico ....... 7,000 319,531
Iberdrola SA ........................ 35,668 579,154
Portland Valderrivas SA ............. 3,600 441,109
Repsol SA ........................... 4,392 242,011
Sociedad General de Aguas de
Barcelona SA ...................... 6,060 337,874
Tabacalera SA-A ..................... 80,000 1,638,083
Telefonica de Espana ................ 26,528 1,226,498
TelePizza SA* ....................... 40,000 423,867
------------
TOTAL SPAIN (5.6%) ................ 12,515,127
------------
SWEDEN
Asticus AB* ......................... 52,000 573,649
Astra AB (A Shares) ................. 20,001 408,695
Castellum AB ........................ 68,000 801,304
Dahl International AB+ .............. 30,000 552,839
Ericsson LM (ADR) ................... 12,800 373,875
Forenings Sparbanken AB
(A Shares) ........................ 2,700 81,234
Kalmar Industries AB+ ............... 10,000 150,433
Karlshamns AB+ ...................... 34,000 460,323
Lindex AB ........................... 22,000 801,178
Mandamus AB* ........................ 135 846
NetCom Systems AB (B Shares)* 18,000 689,357
Scandic Hotels AB+ .................. 30,000 1,090,636
Skandia Forsakrings AB .............. 40,000 571,643
Skandinaviska Enskilda Banken
(Series A) ........................ 84,700 1,449,361
Swedish Match AB .................... 235,108 781,040
------------
TOTAL SWEDEN (3.9%) ............... 8,786,413
------------
SWITZERLAND
Barry Callebaut AG* ................. 6,800 1,467,045
Ciba Specialty Chemicals AG ......... 8,600 1,105,001
Credit Suisse Group ................. 1,250 278,337
Gretag Imaging Group* ............... 16,800 1,612,720
Mettler-Toledo International,
Inc.* ............................. 76,500 1,534,781
Nestle SA ........................... 300 642,476
Novartis AG ......................... 400 666,095
Roche Holding AG
Genusssheine ...................... 80 786,171
Schweizerische
Rueckversicherungs-Gesellschaft 120 303,701
Selecta Group ....................... 2,300 491,654
Tag Heuer International SA
(ADR) ............................. 35,000 328,125
UBS AG--Registered* ................. 600 223,263
------------
TOTAL SWITZERLAND (4.2%) .......... 9,439,369
------------
</TABLE>
42
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND
CMIC Finance & Securities
Public Co. Ltd.* ............................ 51,000 $ 0
Nation Multimedia Group Public
Co. Ltd.* ................................... 130,000 27,725
Thai Engine Manufacturing
Public Co. Ltd.* ............................ 70,000 26,540
-----------
TOTAL THAILAND (0.0%) ....................... 54,265
-----------
UNITED KINGDOM
Amvescap PLC .................................. 80,000 781,563
BAA PLC ....................................... 30,000 324,148
Bank of Scotland .............................. 70,000 784,402
Barclays PLC .................................. 36,000 1,038,878
BG PLC ........................................ 22,077 127,750
Boots Co. PLC ................................. 5,806 96,282
BPB PLC ....................................... 70,000 424,349
British Aerospace ............................. 100,000 766,533
British Airways PLC ........................... 38,000 411,540
British Energy PLC ............................ 80,000 700,067
British Petroleum Co. PLC ..................... 29,367 428,637
British Sky Broadcasting Group
PLC ......................................... 8,097 58,212
British Telecommunications PLC 35,150 434,385
BTR PLC ....................................... 17,444 49,525
Cable & Wireless PLC .......................... 12,409 150,864
Cadbury Schweppes PLC ......................... 5,961 92,332
Carpetright PLC ............................... 50,000 218,771
Commercial Union PLC .......................... 6,382 119,149
Compass Group PLC ............................. 285,200 3,281,610
De La Rue PLC ................................. 10,000 49,599
Diageo PLC .................................... 90,985 1,078,813
Dixons Group PLC .............................. 120,000 957,916
EMI Group PLC ................................. 50,000 437,542
Energis PLC* .................................. 130,000 1,979,960
Filtronic Comtek PLC .......................... 220,000 1,469,606
Frontline Ltd.* ............................... 979,050 638,650
Frontline Ltd.--Warrants (expire
05/11/01)* .................................. 57,060 0
General Electric Co. PLC ...................... 13,890 119,809
GKN PLC* ...................................... 4,178 53,272
Glaxo Wellcome PLC ............................ 23,220 697,608
Granada Group PLC ............................. 3,225 59,351
Great Universal Stores PLC .................... 3,970 52,376
Harvey Nichols PLC ............................ 40,000 155,645
House of Fraser PLC ........................... 130,000 377,756
HSBC Holdings PLC ............................. 10,000 242,485
Imperial Tobacco Group PLC .................... 125,000 922,679
International Public Relations
PLC ......................................... 80,000 65,464
Johnson Matthey PLC ........................... 55,000 494,155
Kingfisher PLC ................................ 4,084 65,816
Ladbroke Group PLC ............................ 150,000 824,148
Land Securities PLC ........................... 3,207 49,621
Legal & General Group PLC ..................... 7,475 79,831
Lloyds TSB Group PLC .......................... 34,379 481,409
LucasVarity PLC ............................... 100,000 397,462
Marks & Spencer PLC ........................... 17,109 155,861
McBride PLC ................................... 20,000 57,281
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
McKechnie PLC ................................. 35,000 $ 254,259
MEPC PLC ...................................... 70,000 616,065
Misys PLC ..................................... 15,000 852,956
National Grid Group PLC ....................... 221,000 1,491,049
National Power PLC ............................ 120,000 1,130,261
National Westminster Bank PLC 10,000 178,858
Norwich Union PLC ............................. 80,000 581,162
Peninsular & Oriental Steam
Navigation Co. .............................. 3,314 47,762
Powerscreen International PLC ................. 160,000 240,481
Prudential Corp. PLC .......................... 8,019 105,728
Randgold Resources Ltd.
(GDR)*+ ..................................... 30,300 163,014
Reed International PLC ........................ 100,000 905,144
Rentokil Initial PLC .......................... 140,000 1,007,682
Rio Tinto PLC ................................. 5,510 62,112
Senior Engineering Group PLC .................. 120,000 394,790
Smith & Nephew PLC ............................ 40,000 99,866
Smith (W.H.) Group PLC ........................ 54,000 479,759
Smith (W.H.) Group PLC
(B Shares)* ................................. 60,000 53,607
Smithkline Beecham PLC ........................ 70,000 855,127
Tesco PLC ..................................... 12,625 123,340
Thistle Hotels PLC ............................ 92,000 336,473
Thomson Travel Group PLC* ..................... 150,000 468,437
Tomkins PLC ................................... 50,000 271,585
Unilever PLC .................................. 19,628 209,129
Vodafone Group PLC ............................ 100,000 1,270,040
WPP Group PLC ................................. 140,000 918,253
Yule Catto & Co. PLC .......................... 162,079 1,009,610
Zeneca Group PLC .............................. 10,336 443,958
-----------
TOTAL UNITED KINGDOM (16.5%)
36,823,619
-----------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (89.4%)
(Cost $193,205,460) ......................... 200,050,861
-----------
PREFERRED STOCKS:
AUSTRALIA (0.1%)
Village Roadshow Ltd. ......................... 160,000 238,081
-----------
AUSTRIA (0.5%)
Bank Austria AG ............................... 13,300 1,080,091
-----------
FINLAND (0.3%)
Nokia Oyj ADR ................................. 8,000 588,777
-----------
GERMANY (0.3%)
ProSieben Media AG* ........................... 15,500 806,155
-----------
TOTAL PREFERRED STOCKS (1.2%)
(Cost $2,239,182) ........................... 2,713,104
-----------
PRINCIPAL
AMOUNT
---------
LONG-TERM DEBT SECURITIES:
UNITED KINGDOM (0.0%)
National Grid Co. PLC
4.25% Conv., 02/17/08 ....................... $60,000 114,354
-----------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $99,474)..................... 114,354
-----------
</TABLE>
43
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
5.85%, due 07/01/98 .............. $4,400,000 $ 4,400,000
5.5%, due 07/23/98 ............... 3,000,000 2,989,953
Federal National Mortgage
Association:
5.56%, due 07/07/98 .............. 4,000,000 3,996,293
5.51%, due 07/21/98 .............. 5,000,000 4,984,695
------------
TOTAL U.S. GOVERNMENT AGENCIES (7.3%) 16,370,941
------------
TOTAL SHORT-TERM DEBT SECURITIES (7.3%)
(Amortized Cost $16,370,941) ..... 16,370,941
------------
TOTAL INVESTMENTS (97.9%)
(Cost/Amortized Cost $211,915,057) 219,249,260
OTHER ASSETS
LESS LIABILITIES (2.1%) .......... 4,604,224
------------
NET ASSETS (100.0%) ................ $223,853,484
============
</TABLE>
- -----------------------------------------------------------------------
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Equity Investments
<TABLE>
<S> <C>
Basic Materials ............................................ 5.0%
Business Services .......................................... 9.7
Capital Goods .............................................. 8.4
Consumer Cyclicals ......................................... 17.9
Consumer Non-Cyclicals ..................................... 16.5
Credit Sensitive ........................................... 27.1
Diversified ................................................ 1.6
Energy ..................................................... 3.2
Technology ................................................. 10.6
-----
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, 1998, these securities amounted to $8,064,923 or 3.6%
of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
44
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS--SPECIALTY (2.5%)
Crompton & Knowles Corp.++ ............. 5,000,000 $ 125,937,500
-------------
STEEL (0.2%)
Ispat International NV (New
York Registered Shares)* ............. 577,000 10,818,750
-------------
TOTAL BASIC MATERIALS (2.7%) ......... 136,756,250
-------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.4%)
U.S. Filter Corp.* ..................... 2,500,000 70,156,250
-------------
PRINTING, PUBLISHING &
BROADCASTING (5.4%)
Comcast Corp. (Class A) SPL ............ 5,000,000 202,968,750
King World Productions, Inc.* .......... 1,000,000 25,500,000
USA Networks, Inc.* .................... 1,700,000 42,712,500
-------------
271,181,250
-------------
TRUCKING, SHIPPING (1.1%)
Teekay Shipping Corp.++ ................ 2,137,000 53,558,563
-------------
TOTAL BUSINESS SERVICES (7.9%) 394,896,063
-------------
CONSUMER CYCLICALS
AIRLINES (7.9%)
Continental Airlines, Inc.
(Class B)*++ ......................... 3,800,000 231,325,000
Delta Air Lines, Inc. .................. 800,000 103,400,000
Northwest Airlines Corp.
(Class A)* ........................... 1,600,000 61,700,000
-------------
396,425,000
-------------
APPAREL, TEXTILE (9.8%)
Jones Apparel Group, Inc.* ............. 4,000,000 146,250,000
Mohawk Industries, Inc.*++ ............. 3,700,000 117,243,750
Polo Ralph Lauren Corp.*++ ............. 2,300,000 64,400,000
Tommy Hilfiger Corp.*++ ................ 1,751,200 109,450,000
UNIFI, Inc. ............................ 1,600,000 54,800,000
-------------
492,143,750
-------------
AUTO RELATED (9.9%)
Circuit City Stores, Inc.-CarMax
Group*++ ............................. 6,300,000 64,181,250
Dollar Thrifty Automotive
Group, Inc.*++ ....................... 1,500,000 19,875,000
Hertz Corp. (Class A) .................. 1,600,000 70,900,000
Republic Industries, Inc.* ............. 12,000,000 300,000,000
United Rentals, Inc.* .................. 966,900 40,609,800
-------------
495,566,050
-------------
FOOD SERVICES, LODGING (2.6%)
CapStar Hotel Co.*++ ................... 2,400,000 67,200,000
Extended Stay America, Inc.* ........... 1,500,000 16,875,000
Florida Panthers Holdings, Inc.*++ 2,500,000 49,218,750
-------------
133,293,750
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.4%)
Industrie Natuzzi Spa (ADR) ............ 2,400,000 62,400,000
Steelcase, Inc. (Class A) .............. 275,200 7,155,200
-------------
69,555,200
-------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
LEISURE RELATED (1.9%)
Premier Parks Inc.* .................... 1,400,000 $ 93,275,000
-------------
RETAIL--GENERAL (11.5%)
Abercrombie & Fitch Co.
(Class A)*++ ......................... 1,800,000 79,200,000
Borders Group, Inc.* ................... 1,800,000 66,600,000
Circuit City Stores-Circuit City
Group ................................ 1,225,000 57,421,875
Gucci Group N.V. (New York
Registered Shares) ................... 600,000 31,800,000
PETsMART, Inc.* ........................ 3,000,000 30,000,000
Proffitt's, Inc.* ...................... 1,900,000 76,712,500
Ross Stores, Inc. ...................... 1,160,000 49,880,000
Tiffany & Co.++ ........................ 2,500,000 120,000,000
Venator Group, Inc.* ................... 3,500,000 66,937,500
-------------
578,551,875
-------------
TOTAL CONSUMER CYCLICALS (45.0%) 2,258,810,625
-------------
CONSUMER NONCYCLICALS
DRUGS (4.0%)
Centocor, Inc.*++ ...................... 3,300,000 119,625,000
Genzyme Corp. (General
Division)* ........................... 87,300 2,231,606
MedImmune, Inc.*++ ..................... 1,300,000 81,087,500
-------------
202,944,106
-------------
HOSPITAL SUPPLIES &
SERVICES (0.6%)
Patriot American Hospitality, Inc. 1,200,000 28,725,000
-------------
TOTAL CONSUMER NONCYCLICALS (4.6%) 231,669,106
-------------
CREDIT SENSITIVE
BANKS (1.0%)
GreenPoint Financial Corp. ............. 1,300,000 48,912,500
-------------
FINANCIAL SERVICES (2.8%)
Edwards (A.G.), Inc. ................... 1,100,000 46,956,250
Newcourt Credit Group, Inc. ............ 1,000,000 49,187,500
Paine Webber Group, Inc. ............... 1,000,000 43,000,000
-------------
139,143,750
-------------
INSURANCE (7.0%)
Ace Ltd.* .............................. 1,200,000 46,800,000
AFLAC, Inc. ............................ 1,100,000 33,343,750
CNA Financial Corp.* ................... 5,800,000 270,062,500
-------------
350,206,250
-------------
REAL ESTATE (4.9%)
Boston Properties, Inc. ................ 1,500,000 51,750,000
Crescent Real Estate Equities
Co. .................................. 1,100,000 36,987,500
Equity Office Properties Trust ......... 1,200,000 34,050,000
Security Capital Group, Inc.
(Class B)*++ ......................... 1,800,000 47,925,000
Vornado Realty Trust ................... 1,900,000 75,406,250
-------------
246,118,750
-------------
UTILITY--TELEPHONE (1.4%)
Telephone & Data Systems, Inc.++ 1,834,500 72,233,438
-------------
TOTAL CREDIT SENSITIVE (17.1%) 856,614,688
-------------
</TABLE>
45
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------
<S> <C> <C>
ENERGY
OIL--SUPPLIES &
CONSTRUCTION (3.5%)
Diamond Offshore Drilling, Inc. ..... 4,219,100 $ 168,764,000
Rowan Cos., Inc.* ................... 359,900 6,995,556
--------------
175,759,556
--------------
RAILROADS (1.5%)
Kansas City Southern Industries,
Inc. .............................. 1,500,000 74,437,500
--------------
TOTAL ENERGY (5.0%) ............... 250,197,056
--------------
TECHNOLOGY
ELECTRONICS (9.3%)
Altera Corp.* ....................... 1,400,000 41,387,500
Citrix Systems, Inc.* ............... 226,500 15,486,937
Keane, Inc.* ........................ 671,000 37,576,000
Network Associates, Inc.* ........... 2,400,000 114,900,000
PairGain Technologies, Inc.* ........ 2,500,000 43,593,750
Parametric Technology Corp.* ........ 1,264,300 34,294,138
Sanmina Corp.* ...................... 935,000 40,555,625
Seagate Technology, Inc.* ........... 861,700 20,519,231
Sterling Commerce, Inc.* ............ 800,000 38,800,000
Synopsys, Inc.* ..................... 1,100,000 50,325,000
Xilinx, Inc.* ....................... 800,000 27,200,000
--------------
464,638,181
--------------
OFFICE EQUIPMENT SERVICES (1.4%)
Comverse Technology, Inc.*++ ........ 1,400,000 72,625,000
--------------
TELECOMMUNICATIONS (2.9%)
American Satellite
Network--Warrants (expire
07/01/99)* ........................ 49,450 0
Millicom International Cellular
SA*++ ............................. 2,400,000 105,000,000
WinStar Communications, Inc.* ....... 1,000,000 42,937,500
--------------
147,937,500
--------------
TOTAL TECHNOLOGY (13.6%) .......... 685,200,681
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (95.9%)
(Cost $4,188,530,710) ............. 4,814,144,469
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCE (0.2%)
First Union National Bank
5.52%, due 07/30/98 .............. $10,000,000 $ 9,955,694
--------------
COMMERCIAL PAPER (4.3%)
Barton Capital Corp.
5.63%, due 08/25/98 .............. 7,075,000 7,014,686
Four Winds Funding Corp.
6.3%, due 07/01/98 ............... 50,000,000 50,000,000
Household Finance Corp.
6.25%, due 07/01/98 .............. 50,000,000 50,000,000
Salomon Smith Barney
Holdings, Inc.
5.59%, due 08/12/98 .............. 20,000,000 19,870,500
Sara Lee Corp.
5.7%, due 07/06/98 ............... 50,000,000 49,960,415
Shell Oil Co.
5.51%, due 07/15/98 .............. 15,000,000 14,967,917
UBS Finance Delaware, Inc.
5.56%, due 08/10/98 .............. 25,000,000 24,846,390
--------------
216,659,908
--------------
TOTAL SHORT-TERM DEBT SECURITIES (4.5%)
(Amortized Cost $226,615,602) 226,615,602
--------------
TOTAL INVESTMENTS (100.4%)
(Cost/Amortized
Cost $4,415,146,312).............. 5,040,760,071
OTHER ASSETS
LESS LIABILITIES (-0.4%) ......... (18,344,773)
--------------
NET ASSETS (100.0%) ................ $5,022,415,298
==============
</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.
46
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS--SPECIALTY (1.9%)
Crompton & Knowles Corp. ............ 140,200 $ 3,531,287
Cytec Industries, Inc.* ............. 41,100 1,818,675
------------
5,349,962
------------
METALS & MINING (2.4%)
Bethlehem Steel Corp.* .............. 228,400 2,840,725
Gibraltar Steel Corp.* .............. 77,000 1,578,500
Kaiser Aluminum Corp.* .............. 227,100 2,171,644
------------
6,590,869
------------
STEEL (0.7%)
WHX Corp.* .......................... 148,000 1,905,500
------------
TOTAL BASIC MATERIALS (5.0%) ...... 13,846,331
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.2%)
Superior Services, Inc.* ............ 104,400 3,138,550
------------
PRINTING, PUBLISHING &
BROADCASTING (5.7%)
Mail-Well, Inc.* .................... 81,300 1,763,194
Sinclair Broadcast Group, Inc.* ..... 233,500 6,713,125
Young Broadcasting, Inc.
(Class A)* ........................ 111,600 7,254,000
------------
15,730,319
------------
PROFESSIONAL SERVICES (13.9%)
Caribiner International, Inc.* ...... 90,700 1,587,250
Carematrix Corp.* ................... 138,100 3,720,069
Consolidation Capital Corp.* ........ 133,400 2,999,416
Cornell Corrections, Inc.* .......... 100,100 2,102,100
Data Processing Resources
Corp.* ............................ 137,700 4,277,306
Equity Corp. International* ......... 86,400 2,073,600
Ha-Lo Industries, Inc.* ............. 200,700 6,246,787
ITT Educational Services, Inc.* ..... 59,000 1,902,750
Metamor Worldwide, Inc.* ............ 129,200 4,546,225
Preview Travel, Inc.* ............... 54,300 1,866,562
Sylvan Learning Systems, Inc.* ...... 42,950 1,406,613
TeleTech Holdings, Inc.* ............ 123,200 1,509,200
True North Communications Inc. 146,800 4,293,900
------------
38,531,778
------------
TRUCKING, SHIPPING (2.6%)
C.H. Robinson Worldwide, Inc. ....... 104,400 2,596,950
Knightsbridge Tankers Ltd. .......... 90,200 2,412,850
Marine Transport Corp.* ............. 25,020 101,644
OMI Corp.* .......................... 253,400 2,027,200
------------
7,138,644
------------
TOTAL BUSINESS SERVICES (23.4%) 64,539,291
------------
CAPITAL GOODS
AEROSPACE (1.1%)
DONCASTERS PLC (ADR)* ............... 109,500 3,045,469
------------
BUILDING MATERIALS & FOREST
PRODUCTS (1.2%)
Buckeye Technologies, Inc.* ......... 81,300 1,915,631
Hughes Supply, Inc. ................. 35,950 1,316,669
------------
3,232,300
------------
TOTAL CAPITAL GOODS (2.3%) ........ 6,277,769
------------
CONSUMER CYCLICALS
AIRLINES (2.9%)
Alaska Air Group, Inc.* ............. 44,900 2,449,856
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Atlantic Coast Airlines
Holdings* ......................... 138,600 $ 4,158,000
Mesa Air Group, Inc.* ............... 168,100 1,365,812
------------
7,973,668
------------
APPAREL, TEXTILE (5.4%)
Mohawk Industries, Inc.* ............ 213,200 6,755,775
Nautica Enterprises, Inc.* .......... 119,800 3,212,137
Tommy Hilfiger Corp.* ............... 29,100 1,818,750
Wolverine World Wide, Inc. .......... 145,400 3,153,363
------------
14,940,025
------------
AUTOS & TRUCKS (0.4%)
Miller Industries, Inc.* ............ 125,600 973,400
------------
AUTO RELATED (3.4%)
Avis Rent A Car, Inc.* .............. 83,800 2,074,050
Budget Group, Inc. (Class A)* ....... 177,500 5,668,906
Dollar Thrifty Automotive
Group, Inc.* ...................... 135,200 1,791,400
------------
9,534,356
------------
FOOD SERVICES, LODGING (2.2%)
American General Hospitality
Corp. ............................. 86,400 1,836,000
CapStar Hotel Co.* .................. 71,000 1,988,000
Innkeepers USA Trust ................ 183,100 2,311,637
------------
6,135,637
------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.9%)
Furniture Brands International,
Inc.* ............................. 102,200 2,867,987
Industrie Natuzzi Spa (ADR) ......... 92,800 2,412,800
------------
5,280,787
------------
LEISURE RELATED (4.1%)
Bally Total Fitness Holding
Corp.* ............................ 112,100 4,035,600
Premier Parks Inc.* ................. 56,500 3,764,313
SFX Entertainment, Inc.
(Class A)* ........................ 75,600 3,468,150
------------
11,268,063
------------
RETAIL--GENERAL (5.5%)
Brylane, Inc.* ...................... 74,000 3,404,000
Central Garden & Pet Co.* ........... 52,900 1,646,513
Hines Horticulture, Inc.* ........... 49,600 545,600
Pacific Sunwear of California,
Inc.* ............................. 124,475 4,356,625
PETsMART, Inc.* ..................... 208,300 2,083,000
Men's Wearhouse, Inc.* .............. 100,100 3,303,300
------------
15,339,038
------------
TOTAL CONSUMER CYCLICALS (25.8%) 71,444,974
------------
CONSUMER NONCYCLICALS
CONTAINERS (0.9%)
Ivex Packaging Corp.* ............... 105,600 2,455,200
------------
DRUGS (4.2%)
Creative BioMolecules, Inc.* ........ 258,800 1,245,475
Geltex Pharmaceuticals, Inc.* ....... 102,800 1,914,650
Jones Medical Industries, Inc. ...... 96,700 3,203,188
Medicis Pharmaceutical Corp.
(Class A)* ........................ 87,900 3,208,350
MedImmune, Inc.* .................... 35,200 2,195,600
------------
11,767,263
------------
</TABLE>
47
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
HOSPITAL SUPPLIES & SERVICES (3.1%)
Mid Atlantic Medical Services,
Inc.* ................................. 184,800 $ 2,125,224
National Surgery Centers, Inc.* ......... 98,850 2,872,828
NovaCare, Inc.* ......................... 173,600 2,039,800
PAREXEL International Corp.* ............ 40,200 1,462,275
------------
8,500,127
------------
TOTAL CONSUMER NONCYCLICALS (8.2%) 22,722,590
------------
CREDIT SENSITIVE
BANKS (0.5%)
Friedman, Billings, Ramsey
Group, Inc.* .......................... 87,700 1,266,169
------------
FINANCIAL SERVICES (2.4%)
Affiliated Managers Group, Inc.* 33,500 1,243,688
FIRSTPLUS Financial Group,
Inc.* ................................. 50,000 1,800,000
Healthcare Financial Partners,
Inc.* ................................. 34,200 2,096,887
Medaphis Corp.* ......................... 270,400 1,622,400
------------
6,762,975
------------
INSURANCE (0.6%)
Annuity and Life Re (Holdings),
Ltd.* ................................. 73,100 1,617,337
------------
REAL ESTATE (1.8%)
Glenborough Realty Trust, Inc. .......... 109,100 2,877,513
Macerich Co. ............................ 75,300 2,207,231
------------
5,084,744
------------
TOTAL CREDIT SENSITIVE (5.3%) 14,731,225
------------
ENERGY
OIL--SUPPLIES & CONSTRUCTION (1.0%)
Oceaneering International, Inc.* ........ 75,500 1,340,125
Parker Drilling Co.* .................... 188,900 1,334,106
------------
2,674,231
------------
RAILROADS (0.6%)
Genesee & Wyoming, Inc.
(Class A)* ............................ 88,500 1,681,500
------------
TOTAL ENERGY (1.6%) ................... 4,355,731
------------
TECHNOLOGY
ELECTRONICS (6.7%)
Amkor Technologies, Inc.* ............... 118,900 1,110,972
CKS Group, Inc.* ........................ 74,400 1,339,200
Cypress Semiconductor Corp.* ............ 154,800 1,286,775
Flextronics International Ltd.* ......... 77,000 3,349,500
IDT Corp.* .............................. 75,700 2,275,731
Interplay Entertainment Corp.* .......... 145,000 833,750
PairGain Technologies, Inc.* ............ 151,800 2,647,012
Photronics, Inc.* ....................... 56,900 1,255,356
Semtech Corp.* .......................... 76,600 1,354,863
Sykes Enterprises, Inc.* ................ 65,400 1,312,088
Xylan Corp.* ............................ 60,300 1,797,694
------------
18,562,941
------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT (2.8%)
Discreet Logic, Inc.* ................... 151,400 $ 1,760,025
Platinum Technology, Inc.* .............. 105,200 3,004,775
Sterling Software, Inc.* ................ 100,900 2,982,856
------------
7,747,656
------------
OFFICE EQUIPMENT SERVICES (4.2%)
Comverse Technology, Inc.* .............. 128,300 6,655,563
Oak Technology, Inc.* ................... 212,100 967,706
Peregrine Systems, Inc.* ................ 9,900 282,150
Platinum Software Corp.* ................ 115,900 2,825,063
Systems & Computer Technology
Corp.* ................................ 31,200 842,400
------------
11,572,882
------------
TELECOMMUNICATIONS (5.7%)
FORE Systems, Inc.* ..................... 41,900 1,110,350
Global Imaging Systems, Inc.* ........... 159,500 2,233,000
GST Telecommunications, Inc.* ........... 72,200 1,042,387
ICG Communications, Inc.* ............... 73,100 2,672,719
MetroNet Communications Corp.
(Class B)* ............................ 92,400 2,610,300
Millicom International Cellular
SA* ................................... 45,400 1,986,250
SkyTel Communications, Inc.* ............ 85,500 2,001,234
WinStar Communications, Inc.* ........... 50,900 2,185,519
------------
15,841,759
------------
TOTAL TECHNOLOGY (19.4%) .............. 53,725,238
------------
TOTAL COMMON STOCKS (91.0%)
(Cost $244,029,539) ................... 251,643,149
------------
PRINCIPAL
AMOUNT
--------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.
5.85%, due 07/01/98 ................... $12,900,000 12,900,000
Federal National Mortgage
Association:
5.56%, due 07/07/98 ................... 5,000,000 4,995,367
5.51%, due 07/21/98 ................... 10,000,000 9,969,389
5.48%, due 07/29/98 ................... 6,000,000 5,974,520
------------
TOTAL U.S. GOVERNMENT AGENCIES (12.2%) 33,839,276
------------
TOTAL SHORT-TERM DEBT SECURITIES (12.2%)
(Amortized Cost $33,839,276) .......... 33,839,276
------------
TOTAL INVESTMENTS (103.2%)
(Cost/Amortized Cost $277,868,815) . 285,482,425
OTHER ASSETS
LESS LIABILITIES (-3.2%) .............. (8,847,044)
------------
NET ASSETS (100.0%) ..................... $276,635,381
============
</TABLE>
- ----------
* Non-income producing.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
48
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (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. ..................... 600 $ 133,438
Bayer AG ............................ 4,000 206,487
Ciba Specialty Chemicals AG ......... 700 89,942
Georgia Gulf Corp. .................. 12,000 273,750
Hitachi Chemical Co. Ltd. ........... 15,000 91,329
Nippon Chemi-Con Corp. .............. 6,000 25,018
Rhodia SA* .......................... 640 17,843
Toagosei Co. Ltd. ................... 15,000 26,944
Yule Catto & Co. PLC ................ 5,000 31,146
-----------
895,897
-----------
CHEMICALS--SPECIALTY (0.0%)
NGK Insulators ...................... 10,000 86,928
-----------
METALS & MINING (0.1%)
Bethlehem Steel Corp.* .............. 15,000 186,562
Toho Titanium ....................... 1,000 7,791
-----------
194,353
-----------
PAPER (0.1%)
Jefferson Smurfit Corp.* ............ 8,000 125,750
KNP BT (Kon) N.V. ................... 6,000 154,921
Mayr-Melnhof Karton AG .............. 883 57,728
Stone Container Corp.* .............. 5,800 90,625
UPM-Kymmene Oyj ..................... 2,810 77,393
-----------
506,417
-----------
STEEL (0.0%)
Koninklijke Hoogovens N.V. .......... 2,000 86,559
NatSteel Ltd. ....................... 25,000 24,267
Pohang Iron & Steel Co. Ltd.
(ADR) ............................. 2,000 24,000
-----------
134,826
-----------
TOTAL BASIC MATERIALS (0.5%) ...... 1,818,421
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.3%)
Waste Management, Inc. .............. 24,200 847,000
-----------
PRINTING, PUBLISHING &
BROADCASTING (1.4%)
CBS Corp. ........................... 29,500 936,625
Comcast Corp. (Class A) SPL ......... 7,500 304,453
Donnelley (R.R.) & Sons Co. ......... 3,100 141,825
Gannett Co. ......................... 8,700 618,244
Grupo Televisa S.A. (GDR)* .......... 2,400 90,300
Liberty Media Group (Class A)* 37,150 1,441,884
National Bank of Canada ............. 3,000 58,612
New Straits Times Press BHD ......... 8,000 2,969
Reed International PLC .............. 6,600 59,740
Seat Spa* ........................... 160,000 108,056
Tele-Communications, Inc.
(Class A)* ........................ 18,400 707,250
Tele-Communications
International, Inc.* .............. 1,100 22,103
Television Broadcasts Ltd. .......... 1,000 2,646
Tokyo Broadcasting System, Inc. 2,000 22,363
United News & Media PLC ............. 3,666 51,304
Viacom, Inc. (Class B)* ............. 5,000 291,250
-----------
4,859,624
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
PROFESSIONAL SERVICES (0.0%)
Meitec Corp. ........................ 500 $ 17,314
Vedior N.V. ......................... 691 19,534
-----------
36,848
-----------
TRUCKING, SHIPPING (0.2%)
Bergesen Dy AS (A Shares) ........... 5,380 102,476
Frontline Ltd.* ..................... 65,270 42,576
Frontline Ltd.--Warrants (expire
05/11/01)* ........................ 3,804 0
Knightsbridge Tankers Ltd. .......... 6,800 181,900
Marine Transport Corp.* ............. 5,310 21,572
OMI Corp.* .......................... 53,100 424,800
Yamato Transport Co. Ltd. ........... 1,000 11,218
-----------
784,542
-----------
TOTAL BUSINESS SERVICES (1.9%) 6,528,014
-----------
CAPITAL GOODS
AEROSPACE (0.1%)
British Aerospace ................... 21,428 164,253
Senior Engineering Group PLC ........ 16,000 52,638
-----------
216,891
-----------
BUILDING & CONSTRUCTION (0.1%)
Beazer Group PLC .................... 21,000 64,880
Bouygues ............................ 600 108,938
Daito Trust Construction Co.
Ltd. .............................. 1,100 8,332
Groupe GTM .......................... 1,116 115,890
Makita Corp. ........................ 2,000 23,070
National House Industrial Co.
Ltd. .............................. 7,000 53,679
Sho-Bond Corp. ...................... 1,200 21,902
Societe Technip ..................... 1,075 131,364
Toda Corp. .......................... 3,000 12,011
-----------
540,066
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (0.3%)
BPB PLC ............................. 11,300 68,502
Fujikura Ltd. ....................... 3,000 13,375
Holderbank Financiere Glaris
AG ................................ 120 152,801
Martin Marietta Materials, Inc. ..... 12,200 549,000
Matsushita Electric Works Ltd. ...... 11,000 88,876
Nichiha Corp. ....................... 1,400 8,272
Rugby Group PLC ..................... 58,160 108,297
Unidare PLC* ........................ 20,000 72,607
-----------
1,061,730
-----------
ELECTRICAL EQUIPMENT (0.8%)
Daikin Industries Ltd. .............. 14,000 90,290
General Electric Co. ................ 26,000 2,366,000
Johnson Electric Holdings Ltd. ...... 28,800 106,681
Legrand SA .......................... 425 112,443
Sumitomo Electric Industries ........ 7,000 70,848
-----------
2,746,262
-----------
MACHINERY (0.9%)
AlliedSignal, Inc. .................. 14,300 634,563
Coltec Industries, Inc.* ............ 2,400 47,700
Fujitec Co. Ltd. .................... 9,000 54,538
IHC Caland N.V. ..................... 1,200 67,575
Ishikawajima Harima Heavy
Industries Co. Ltd. ............... 2,000 3,650
</TABLE>
49
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Keyence Corp. ........................ 100 $ 10,893
KSB AG* .............................. 300 74,854
Legris Industries SA ................. 1,990 93,124
Mitsubishi Heavy Industries Ltd. 2,000 7,560
Mori Seiki Co. Ltd. .................. 1,000 12,257
Nitta Corp. .......................... 1,000 6,420
Nitto Kohki Co. Ltd. ................. 600 6,488
Schindler Holding AG
Participating Certificate .......... 102 155,453
Schindler Holding AG
Registered ......................... 50 77,522
Siebe PLC ............................ 6,000 119,940
SMC Corp. ............................ 300 22,832
Stork N.V. ........................... 2,000 63,739
TI Group PLC ......................... 14,014 106,486
United Technologies Corp. ............ 15,700 1,452,250
Valmet Oyj ........................... 3,600 62,117
Vestas Wind Systems A/S* ............. 350 13,830
-----------
3,093,791
-----------
TOTAL CAPITAL GOODS (2.2%) ......... 7,658,740
-----------
CONSUMER CYCLICALS
AIRLINES (0.0%)
Virgin Express Holdings PLC
(ADR)* ............................. 11,500 148,781
-----------
APPAREL, TEXTILE (0.2%)
Carli Gry International A/S .......... 325 26,251
Cone Mills Corp.* .................... 17,000 146,625
Onward Kashiyama Co. Ltd. ............ 8,000 100,130
Tommy Hilfiger Corp.* ................ 9,000 562,500
-----------
835,506
-----------
AUTO RELATED (0.1%)
Continental AG ....................... 5,500 171,389
Dana Corp. ........................... 5,000 267,500
Minebea Co. Ltd. ..................... 2,000 19,925
Sumitomo Rubber Industries,
Inc. ............................... 13,000 70,149
-----------
528,963
-----------
AUTOS & TRUCKS (0.3%)
Bajaj Auto Ltd. (GDR) ................ 750 9,637
Harley-Davidson, Inc. ................ 26,100 1,011,375
UMW Holdings BHD ..................... 5,000 2,241
Volkswagen AG ........................ 100 96,202
-----------
1,119,455
-----------
FOOD SERVICES, LODGING (0.1%)
Accor SA ............................. 200 55,957
Choice Hotels Scandinavia
ASA*+ .............................. 13,500 40,509
Compass Group PLC .................... 17,000 195,608
John Q Hammons Hotels, Inc.
(Class A)* ......................... 14,800 104,525
-----------
396,599
-----------
HOUSEHOLD FURNITURE,
APPLIANCES (0.2%)
Hunter Douglas N.V. .................. 2,150 116,842
Industrie Natuzzi Spa (ADR) .......... 500 13,000
Moulinex* ............................ 2,000 51,889
Sony Corp. ........................... 1,200 103,449
Steelcase, Inc. (Class A) ............ 15,000 390,000
-----------
675,180
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
LEISURE RELATED (1.2%)
Amer Group Ltd. (Series A)* .......... 1,000 $ 19,334
Berjaya Sports Toto Ltd. BHD ......... 16,000 23,709
Canal Plus ........................... 300 56,056
Carnival Corp. (Class A) ............. 25,600 1,014,400
Cendant Corp.* ....................... 7,100 148,213
Cyrk, Inc.* .......................... 10,600 116,600
Disney (Walt) Co. .................... 6,500 682,906
EMI Group PLC ........................ 1,000 8,751
Granada Group PLC .................... 9,900 182,194
Ladbroke Group PLC ................... 25,000 137,358
Mirage Resorts, Inc.* ................ 36,600 780,038
Nelvana Ltd.* ........................ 1,000 21,712
Nintendo Co. Ltd. .................... 200 18,540
Nippon Broadcasting System ........... 1,000 42,202
Royal Caribbean Cruises Ltd. ......... 9,700 771,150
Thomson Travel Group PLC* ............ 14,000 43,721
Toei Co. Ltd. ........................ 1,000 3,152
-----------
4,070,036
-----------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. .................. 4,000 139,374
Gretag Imaging Group* ................ 1,200 115,194
Noritsu Koki Co. Ltd. ................ 1,100 24,599
-----------
279,167
-----------
RETAIL--GENERAL (2.2%)
Abercrombie & Fitch Co.
(Class A)* ......................... 4,505 198,220
Aldeasa SA ........................... 2,300 82,191
BAA PLC .............................. 15,000 162,074
Boots Co. PLC ........................ 8,400 139,299
Dayton Hudson Corp. .................. 30,700 1,488,950
Dickson Concepts International
Ltd. ............................... 18,000 25,090
Genesis Direct, Inc.* ................ 5,000 55,625
Home Depot, Inc. ..................... 10,700 888,769
K-Mart Corp.* ........................ 15,000 288,750
Kingfisher PLC ....................... 8,641 139,255
Kohl's Corp.* ........................ 20,800 1,079,000
Limited, Inc. ........................ 15,000 496,875
Lindex AB ............................ 1,600 58,267
Paris Miki, Inc. ..................... 1,100 14,450
Proffitt's, Inc.* .................... 19,400 783,275
Sato Corp. ........................... 1,200 19,608
Smith (W.H.) Group PLC ............... 1,800 15,992
Smith (W.H.) Group PLC
(B Shares)* ........................ 2,000 1,787
Staples, Inc.* ....................... 35,800 1,035,962
Tandy Corp. .......................... 10,000 530,625
Vendex International N.V. ............ 700 26,922
-----------
7,530,986
-----------
TOTAL CONSUMER CYCLICALS (4.4%) 15,584,673
-----------
CONSUMER NONCYCLICALS
BEVERAGES (0.7%)
Coca-Cola Co. ........................ 21,800 1,863,900
Coca-Cola Enterprises, Inc. .......... 8,300 325,775
Diageo PLC ........................... 5,184 61,467
Scottish & Newcastle PLC ............. 5,000 70,808
Whitbread PLC ........................ 5,000 80,996
-----------
2,402,946
-----------
</TABLE>
50
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
CONTAINERS (0.2%)
Owens-Illinois, Inc.* .............. 5,000 $ 223,750
Schmalbach Lubeca AG ............... 880 217,133
Sealed Air Corp.* .................. 1,800 66,150
-----------
507,033
-----------
DRUGS (2.1%)
Astra AB (A Shares) ................ 3,000 61,301
Bristol-Myers Squibb Co. ........... 11,000 1,264,313
Centocor, Inc.* .................... 26,200 949,750
Daiichi Pharmaceutical Co. ......... 8,000 105,612
Merck KGAA ......................... 2,100 93,967
Merck & Co., Inc. .................. 10,400 1,391,000
Novartis AG ........................ 50 83,262
Orion-Yhtyma Oyj (B Shares)* ....... 4,500 138,713
Pfizer, Inc. ....................... 20,300 2,206,356
Sankyo Co. Ltd. .................... 2,000 45,592
Sanofi SA .......................... 700 82,299
Santen Pharmaceutical Co. Ltd. ..... 3,000 32,874
Schering Plough Corp. .............. 8,900 815,463
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 1,000 20,848
-----------
7,291,350
-----------
FOODS (0.8%)
Barry Callebaut AG* ................ 510 110,028
Campbell Soup Co. .................. 18,600 988,125
Huhtamaki Oy Series I .............. 1,300 74,454
Nestle SA .......................... 131 280,548
Nutreco Holding N.V. ............... 500 17,509
Orkla ASA .......................... 3,720 86,630
Parmalat Finanziaria Spa ........... 59,650 121,694
Rite Aid Corp. ..................... 12,000 450,750
Tyson Foods, Inc. .................. 25,900 561,706
-----------
2,691,444
-----------
HOSPITAL SUPPLIES & SERVICES (0.8%)
Columbia/HCA Healthcare Corp. 26,000 757,250
Medtronic, Inc. .................... 22,600 1,440,750
PT Tempo Scan Pacific .............. 23,000 351
United HealthCare Corp. ............ 10,000 635,000
-----------
2,833,351
-----------
RETAIL--FOOD (0.1%)
Delhaize-Le Lion SA ................ 980 68,458
Familymart Co. ..................... 2,400 91,416
Food Lion, Inc. (Class A) .......... 15,000 159,375
Santa Isabel S.A. (ADR) ............ 333 3,663
Seven-Eleven Japan Co. Ltd. ........ 1,000 59,587
Woolworths Ltd. .................... 40,000 130,200
-----------
512,699
-----------
SOAPS & TOILETRIES (1.0%)
Avon Products, Inc. ................ 16,980 1,315,950
Estee Lauder Companies
(Class A) ........................ 8,500 592,344
Gillette Co. ....................... 25,000 1,417,187
Kao Corp. .......................... 1,000 15,438
-----------
3,340,919
-----------
TOBACCO (0.7%)
Austria Tabakwerke AG .............. 1,000 55,689
Imperial Tobacco Group PLC ......... 1,700 12,548
Japan Tobacco, Inc. ................ 20 135,478
Philip Morris Cos., Inc. ........... 51,300 2,019,938
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Seita .............................. 2,500 $ 113,270
Swedish Match AB ................... 4,154 13,799
Tabacalera SA-A .................... 6,000 122,856
-----------
2,473,578
-----------
TOTAL CONSUMER NONCYCLICALS (6.4%) 22,053,320
-----------
CREDIT SENSITIVE
BANKS (1.9%)
Ahmanson (H.F.) & Co. .............. 2,500 177,500
Allied Irish Bank .................. 20,000 289,412
AMMB Holdings BHD .................. 8,000 4,202
Banca Nazionale del Lavoro
(BNL)* ........................... 700 18,516
Banco Bilbao Vizcaya SA ............ 4,000 205,282
Banco Central
Hispanoamericano SA .............. 1,200 37,718
Banco Santander SA ................. 5,940 152,035
Bangkok Bank Public Co. Ltd. ....... 2,000 2,464
Bank of Tokyo-Mitsubishi Ltd. ...... 2,000 21,195
BankAmerica Corp. .................. 5,900 509,981
Banque Nationale de Paris .......... 1,500 122,530
Barclays PLC ....................... 2,000 57,715
BPI-SGPS SA ........................ 1,000 32,284
Chase Manhattan Corp. .............. 27,600 2,083,800
Corporacion Bancaria de
Espana SA ........................ 4,800 107,675
Credito Italiano Spa ............... 30,000 157,104
Dao Heng Bank Group Ltd. ........... 3,000 4,259
Den Norske Bank ASA ................ 4,000 20,979
Erste Bank Der
Oesterreichischen
Sparkassen AG .................... 750 45,489
Forenings Sparbanken AB
(A Shares) ....................... 1,000 30,087
Istituto Mobiliare Italiano ........ 9,400 148,127
Long-Term Credit Bank of Japan 22,000 12,855
National Westminster Bank PLC 400 7,154
NationsBank Corp. .................. 16,500 1,262,250
Paribas* ........................... 9 963
Philippine Commercial
International Bank ............... 1,000 3,645
PT Bank Dagang Nasional
Indonesia Tbk .................... 136,000 692
Seventy-Seven Bank Co. Ltd. ........ 11,000 92,050
Skandinaviska Enskilda Banken
(Series A) ....................... 4,430 75,805
Societe Generale ................... 800 166,284
State Bank of India (GDR)+ ......... 2,700 31,995
State Street Corp. ................. 4,000 278,000
Suncorp-Metway Ltd. ................ 6,571 15,970
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ...... 375 22
Toho Bank .......................... 1,000 4,018
Wing Hang Bank Ltd. ................ 18,000 24,045
Yamaguchi Bank ..................... 7,000 89,886
Zions Bancorp. ..................... 6,200 329,375
-----------
6,623,363
-----------
FINANCIAL SERVICES (1.6%)
Aiful Corp. ........................ 700 34,187
Associates First Capital Corp.
(Class A) ........................ 14,800 1,137,750
Credit Saison Co. .................. 3,000 59,515
MBNA Corp. ......................... 52,800 1,742,400
</TABLE>
51
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
MCL Land Ltd. ............................. 50,000 $ 17,905
Merrill Lynch & Co., Inc. ................. 8,100 747,225
Morgan Stanley Dean Witter
& Co. ................................... 16,300 1,489,412
Newcourt Credit Group, Inc. ............... 5,000 245,937
Nichiei Co. Ltd. .......................... 300 20,430
Peregrine Investment Holdings
Ltd. .................................... 52,000 0
Sanyo Shinpan Finance Co. Ltd. ............ 200 7,070
Worms Et Compagnie ........................ 200 12,766
-----------
5,514,597
-----------
INSURANCE (2.0%)
ASR Verzekeringsgroep N.V. ................ 1,100 93,375
Catalana Occidente SA ..................... 2,800 88,556
CNA Financial Corp.* ...................... 4,200 195,563
Commercial Union PLC ...................... 5,795 108,198
Corporacion Mapfre ........................ 1,600 56,133
Fortis Amev N.V. .......................... 3,000 175,724
ING Groep N.V. ............................ 4,000 262,037
Irish Life PLC ............................ 18,000 169,735
Kingsway Financial Services* .............. 2,000 18,688
MGIC Investment Corp. ..................... 5,000 285,313
PennCorp Financial Group, Inc. ............ 15,300 313,650
Providian Financial Corp. ................. 11,000 864,188
QBE Insurance Group Ltd. .................. 6,000 21,204
Royal & Sun Alliance Insurance
Group PLC ............................... 9,651 99,846
SunAmerica, Inc. .......................... 14,600 838,587
Travelers Group, Inc. ..................... 44,300 2,685,687
Trygg-Hansa AB (B Shares)* ................ 3,800 116,234
United Assurance Group PLC ................ 8,100 76,834
Willis Corroon Group PLC
(ADR) ................................... 21,200 266,325
Zurich Versicherungs ...................... 246 157,108
-----------
6,892,985
-----------
REAL ESTATE (0.1%)
Asticus AB* ............................... 4,000 44,127
City Developments Ltd. .................... 1,000 2,794
Daibiru Corp. ............................. 1,000 6,449
Glenborough Realty Trust, Inc. ............ 10,000 263,750
Mandamus AB* .............................. 50 313
Sumitomo Realty &
Development Co. Ltd. .................... 1,000 4,415
Unibail SA ................................ 950 122,844
-----------
444,692
-----------
UTILITY--ELECTRIC (0.4%)
AES Corp.* ................................ 12,500 657,031
Cia Paranaense de Energia-Copel
(ADR) ................................... 7,000 64,750
Electricidade de Portugal SA .............. 500 11,628
Hong Kong Electric Holdings
Ltd. .................................... 20,000 61,952
Manila Electric Co. ....................... 1,860 4,906
National Grid Group PLC ................... 2,000 13,494
Powergen PLC .............................. 11,400 157,635
Veba AG ................................... 3,500 238,703
Viag AG ................................... 100 67,646
-----------
1,277,745
-----------
UTILITY--GAS (0.0%)
Anglian Water PLC ......................... 5,000 70,140
Scottish Power PLC ........................ 10,000 87,676
-----------
157,816
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
UTILITY--TELEPHONE (0.2%)
British Telecommunications PLC 10,000 $ 123,580
Cable & Wireless PLC ...................... 12,300 149,539
Telecom Italia Spa ........................ 10,000 73,642
Telefonica de Espana ...................... 6,600 305,145
Telekom Malaysia BHD ...................... 4,000 6,747
-----------
658,653
-----------
TOTAL CREDIT SENSITIVE (6.2%) ........... 21,569,851
-----------
ENERGY
COAL & GAS PIPELINES (0.0%)
BG PLC .................................... 18,529 107,220
OMV AG .................................... 300 40,195
-----------
147,415
-----------
OIL--DOMESTIC (0.4%)
Apache Corp. .............................. 7,000 220,500
Tom Brown, Inc.* .......................... 7,500 141,094
USX-Marathon Group ........................ 26,500 909,281
-----------
1,270,875
-----------
OIL--INTERNATIONAL (0.2%)
British Petroleum Co. PLC ................. 11,100 162,014
Gulf Indonesia Resources Ltd.* ............ 3,200 36,800
Orogen Minerals Ltd. ...................... 5,160 6,878
Repsol SA ................................. 1,410 77,695
Shell Transport & Trading Co.
PLC ..................................... 20,100 141,653
Total SA--B ............................... 2,881 374,447
-----------
799,487
-----------
OIL--SUPPLIES & CONSTRUCTION (0.9%)
BJ Services Co.* .......................... 16,400 476,625
Canadian Fracmaster Ltd.+ ................. 5,900 37,287
Canadian Fracmaster Ltd.
Installment Receipt ..................... 13,500 46
Dresser Industries, Inc. .................. 31,300 1,379,156
Fugro N.V. ................................ 2,000 79,673
Noble Drilling Corp.* ..................... 39,000 938,438
Parker Drilling Co.* ...................... 3,900 27,544
-----------
2,938,769
-----------
TOTAL ENERGY (1.5%) ..................... 5,156,546
-----------
TECHNOLOGY
ELECTRONICS (1.9%)
Altera Corp.* ............................. 22,200 656,287
Cisco Systems, Inc.* ...................... 38,000 3,498,375
Disco Corp. ............................... 1,000 27,774
Fujimi, Inc. .............................. 500 18,323
Intel Corp. ............................... 7,300 541,112
Leitch Technology Corp.* .................. 900 15,137
Micronics Japan Co. Ltd. .................. 1,000 14,067
Murata Manufacturing Co., Ltd. ............ 1,000 32,463
Nikon Corp. ............................... 1,000 7,200
Rohm Co. Ltd. ............................. 1,000 102,799
Sankyo Engineering Co. .................... 1,000 3,888
SMH AG .................................... 540 90,137
Solectron Corp.* .......................... 24,300 1,022,119
Sterling Commerce, Inc.* .................. 5,000 242,500
Texas Instruments, Inc. ................... 3,500 204,094
Tokyo Cathode Laboratory Co. 1,000 7,863
Varitronix International Ltd. ............. 35,000 70,018
Yamaichi Electronics Co. Ltd. ............. 1,000 20,488
Yokogawa Electric Corp. ................... 2,000 10,677
-----------
6,585,321
-----------
</TABLE>
52
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT (1.8%)
Barco N.V. ................................. 469 $ 131,048
Bay Networks, Inc.* ........................ 7,100 228,975
Ceridian Corp.* ............................ 18,000 1,057,500
Compaq Computer Corp. ...................... 45,100 1,279,713
Dell Computer Corp.* ....................... 19,700 1,828,406
Policy Management Systems
Corp.* ................................... 40,100 1,573,925
------------
6,099,567
------------
OFFICE EQUIPMENT SERVICES (0.4%)
Canon Chemicals, Inc.* ..................... 2,000 21,065
Computer Sciences Corp. .................... 4,000 256,000
Data Communication System Co. 1,000 18,035
First Data Corp. ........................... 30,300 1,009,369
Fuji Soft ABC, Inc. ........................ 400 13,620
INES Corp. ................................. 1,000 6,853
Mettler-Toledo International,
Inc.* .................................... 5,700 114,356
Nippon System Development .................. 600 14,283
------------
1,453,581
------------
TELECOMMUNICATIONS (1.0%)
Asia Satellite
Telecommunications
Holdings Ltd. ............................ 18,000 29,737
Clearnet Communications, Inc.
(Class A)* ............................... 7,500 82,500
DDI Corp. .................................. 25 87,109
Energis PLC* ............................... 10,000 152,304
Global TeleSystems Group, Inc.* 700 34,125
Helsinki Telephone Corp. ................... 2,300 106,976
Keppel Telecommunications &
Transportation Ltd. ...................... 4,000 1,894
Nextel Communications, Inc.
(Class A)* ............................... 9,800 243,775
PT Indosat ................................. 45,000 52,474
PT Telekomunikasi Indonesia ................ 33,000 9,341
SK Telecom Co. Ltd. (ADR) .................. 4,000 22,250
Tele-Communications TCI
Ventures Group (Class A)* ................ 24,000 481,500
Tellabs, Inc.* ............................. 25,400 1,819,275
Videsh Sanchar Nigam Ltd.
(GDR)*+ .................................. 1,700 17,595
Videsh Sanchar Nigam Ltd.
(GDR)* ................................... 2,000 18,700
Vodafone Group PLC ......................... 12,000 152,405
WorldCom, Inc.* ............................ 4,525 219,180
------------
3,531,140
------------
TOTAL TECHNOLOGY (5.1%) .................. 17,669,609
------------
DIVERSIFIED
MISCELLANEOUS (0.9%)
BTR PLC .................................... 16,250 46,134
BTR PLC (B Shares)* ........................ 20,000 11,523
Citic Pacific Ltd. ......................... 7,000 12,378
First Pacific Co. .......................... 42,734 17,925
Hagemeyer N.V. ............................. 2,000 86,559
Hutchison Whampoa .......................... 4,000 21,115
Montedison Spa ............................. 70,000 86,867
Smith (Howard) Ltd. ........................ 4,000 23,560
Swire Pacific Ltd. (Class A) ............... 7,000 26,426
Tomkins PLC ................................ 9,000 48,885
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
Tyco International Ltd. .................... 33,000 $ 2,079,000
U.S. Industries, Inc. ...................... 17,800 440,550
Vivendi .................................... 943 201,309
------------
TOTAL DIVERSIFIED (0.9%) ................. 3,102,231
------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (29.1%)
(Cost $76,577,087) ....................... 101,141,405
------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA ................................ 1,694 168,602
------------
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING & BROADCASTING
ProSieben Media AG* ........................ 1,400 72,814
------------
CONSUMER CYCLICALS (0.0%)
RETAIL--GENERAL
Hornbach Holding AG ........................ 920 84,425
------------
CREDIT SENSITIVE (0.0%)
BANKS
Bank Austria AG ............................ 1,000 81,210
------------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Nokia Oyj (A Shares) ....................... 3,000 220,791
------------
TOTAL PREFERRED STOCKS (0.2%)
(Cost $326,771) .......................... 627,842
------------
PRINCIPAL
AMOUNT
------
LONG-TERM DEBT SECURITIES:
CONSUMER CYCLICALS (1.6%)
AUTO RELATED
Enterprise Rent-A-Car
6.8%, 02/15/08+ .......................... $5,500,000 5,511,495
------------
CONSUMER NONCYCLICALS (1.9%)
MEDIA & CABLE
Time Warner Entertainment Co.
8.375%, 03/15/23 ......................... 5,625,000 6,588,619
------------
CREDIT SENSITIVE
BANKS (2.3%)
Chase Manhattan Corp.
8.625%, 05/01/02 ......................... 5,500,000 5,957,270
St. George Bank Ltd.
7.15%, 10/15/05+ ......................... 2,000,000 2,075,740
Sumitomo Bank International
0.75% Conv., 05/31/01. .................... Yen 11,000,000 88,182
------------
8,121,192
------------
FINANCIAL SERVICES (1.3%)
Lehman Bros, Inc.
6.5%, 04/15/08 ........................... $4,450,000 4,458,713
------------
MORTGAGE RELATED (16.2%)
Federal National Mortgage
Association:
6.0%, 11/01/10 ........................... 13,034,982 12,888,273
6.5%, 01/01/11 ........................... 3,039,763 3,056,847
7.0%, 05/01/26 ........................... 7,767,787 7,876,963
7.0%, 09/01/27 ........................... 8,571,729 8,692,205
7.0%, 05/01/28 ........................... 9,380,522 9,512,365
</TABLE>
53
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage
Association:
7.5%, 12/15/25 ................... $ 467,515 $ 480,227
7.5%, 01/15/27 ................... 466,361 479,041
7.5%, 04/15/27 ................... 470,671 483,468
7.5%, 05/15/27 ................... 639,957 657,357
7.5%, 06/15/27 ................... 469,045 481,799
7.0%, 07/15/27 ................... 2,122,770 2,155,949
7.5%, 09/15/27 ................... 458,871 471,347
7.5%, 11/15/27 ................... 467,618 480,332
7.0%, 02/15/28 ................... 6,918,797 7,026,938
6.5%, 03/15/28 ................... 1,584,523 1,580,561
------------
56,323,672
------------
U.S. GOVERNMENT (26.8%)
U.S. Treasury:
6.375% Note, 05/15/99 ............ 17,400,000 17,519,625
6.0% Note, 08/15/00 .............. 16,800,000 16,957,500
6.25% Note, 04/30/01 ............. 15,600,000 15,887,633
6.5% Note, 08/31/01 .............. 7,100,000 7,290,812
6.5% Note, 05/31/02 .............. 10,710,000 11,064,769
6.125% Bond, 11/15/27 ............ 22,550,000 24,163,746
------------
92,884,085
------------
UTILITY--ELECTRIC (2.3%)
Consolidated Edison, Inc.
6.45%, 12/01/07 .................. 4,350,000 4,411,987
Texas Utilities (Series C)
6.375%, 01/01/08+ ................ 3,600,000 3,532,709
------------
7,944,696
------------
TOTAL CREDIT SENSITIVE (48.9%) 169,732,358
------------
TECHNOLOGY (1.7%)
OFFICE EQUIPMENT SERVICES
Computer Associates
International, Inc.
6.375%, 04/15/05+ ................ 6,000,000 5,962,800
------------
TOTAL LONG-TERM DEBT SECURITIES (54.1%)
(Amortized Cost $184,920,543) . 187,795,272
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.:
5.85%, due 07/01/98 .............. $ 10,800,000 $10,800,000
5.50%, due 07/23/98 .............. 7,000,000 6,976,558
Federal National Mortgage
Association:
5.60%, due 07/06/98 .............. 10,000,000 9,992,222
5.56%, due 07/07/98 .............. 10,000,000 9,990,733
5.51%, due 07/21/98 .............. 12,000,000 11,963,267
5.48%, due 07/29/98 .............. 6,000,000 5,974,520
-------------
TOTAL U.S. GOVERNMENT
AGENCIES (16.1%) .............. 55,697,300
-------------
TOTAL SHORT-TERM DEBT SECURITIES (16.1%)
(Amortized Cost $55,697,300)...... 55,697,300
-------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost $317,521,701) 345,261,819
OTHER ASSETS
LESS LIABILITIES (0.5%) .......... 1,749,452
-------------
NET ASSETS (100.0%) ................ $347,011,271
==============
</TABLE>
- ---------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Equity Investments
<TABLE>
<S> <C>
Australia ................................................. 0.7%
Canada .................................................... 0.1
France .................................................... 0.6
Germany ................................................... 0.4
Japan ..................................................... 0.8
Netherlands ............................................... 0.4
Scandinavia ............................................... 0.4
Southeast Asia ............................................ 0.2
Switzerland ............................................... 0.4
United Kingdom ............................................ 1.1
United States** ........................................... 94.0
Other European Countries .................................. 0.9
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 16.1%.
+ 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, 1998, these securities amounted to $17,210,130 or
5.0% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
54
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (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.* .................... 5,000 $ 1,111,985
Bayer AG ............................ 40,500 2,090,685
Ciba Specialty Chemicals AG ......... 8,000 1,027,908
Georgia Gulf Corp. .................. 136,000 3,102,500
Hitachi Chemical Co. Ltd. ........... 159,000 968,085
Nippon Chemi-Con Corp. .............. 62,000 258,520
Rhodia SA* .......................... 4,790 133,542
Toagosei Co. Ltd. ................... 158,000 283,812
Yule Catto & Co. PLC ................ 70,000 436,039
------------
9,413,076
------------
CHEMICALS--SPECIALTY (0.0%)
NGK Insulators ...................... 92,000 799,740
------------
METALS & MINING (0.1%)
Bethlehem Steel Corp.* .............. 135,000 1,679,062
Nord Resources Corp.* ............... 27,939 54,132
Randgold Resources Ltd.
(GDR)* ............................ 30,300 163,014
Toho Titanium ....................... 11,000 85,702
------------
1,981,910
------------
PAPER (0.2%)
Jefferson Smurfit Corp.* ............ 39,600 622,463
KNP BT (Kon) N.V. ................... 53,000 1,368,465
Mayr-Melnhof Karton AG .............. 6,756 441,690
Nippon Paper Industries Co. ......... 6,000 25,018
Stone Container Corp.* .............. 57,900 904,687
UPM-Kymmene Oyj ..................... 25,320 697,362
------------
4,059,685
------------
STEEL (0.1%)
Koninklijke Hoogovens N.V. .......... 20,000 865,588
NatSteel Ltd. ....................... 220,000 213,554
Pohang Iron & Steel Co. Ltd.
(ADR) ............................. 15,000 180,000
------------
1,259,142
------------
TOTAL BASIC MATERIALS (0.9%) ...... 17,513,553
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Waste Management, Inc. .............. 194,800 6,818,000
------------
PRINTING, PUBLISHING &
BROADCASTING (2.7%)
Cablevision Systems Corp.
(Class A)* ........................ 67,000 5,594,500
CBS Corp. ........................... 312,500 9,921,875
Comcast Corp. (Class A) SPL ......... 75,000 3,044,531
Donnelley (R.R.) & Sons Co. ......... 23,600 1,079,700
Gannett Co. ......................... 70,600 5,017,013
Grupo Televisa S.A. (GDR)* .......... 22,000 827,750
Liberty Media Group (Class A)* . 287,450 11,156,653
New Straits Times Press BHD ......... 65,000 24,119
Nippon Television Network
Corp. ............................. 200 58,000
Reed International PLC .............. 64,000 579,292
Seat Spa* ........................... 1,500,000 1,013,029
Tele-Communications, Inc.
(Class A)* ........................ 217,900 8,375,531
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Tele-Communications
International, Inc.* .............. 22,300 $ 448,091
Television Broadcasts Ltd. .......... 10,000 26,458
Tokyo Broadcasting System, Inc. . 14,000 156,543
United News & Media PLC ............. 36,630 512,624
Viacom, Inc. (Class B)* ............. 45,000 2,621,250
------------
50,456,959
------------
PROFESSIONAL SERVICES (0.0%)
Meitec .............................. 3,800 131,583
Vedior N.V. ......................... 7,105 200,922
------------
332,505
------------
TRUCKING, SHIPPING (0.3%)
Bergesen Dy AS (A Shares) ........... 47,300 900,952
Frontline Ltd.* ..................... 456,890 298,036
Frontline Ltd.--Warrants (expire
05/11/01)* ........................ 26,628 0
Knightsbridge Tankers Ltd. .......... 64,500 1,725,375
Marine Transport Corp.* ............. 33,500 136,094
OMI Corp.* .......................... 335,000 2,680,000
Yamato Transport Co. Ltd. ........... 8,000 89,742
------------
5,830,199
------------
TOTAL BUSINESS SERVICES (3.4%)..... 63,437,663
------------
CAPITAL GOODS
AEROSPACE (0.1%)
British Aerospace ................... 202,840 1,554,836
Senior Engineering Group PLC ........ 120,000 394,789
------------
1,949,625
------------
BUILDING & CONSTRUCTION (0.3%)
Beazer Group PLC .................... 187,000 577,739
Bouygues ............................ 10,708 1,944,173
Daito Trust Construction Co.
Ltd. .............................. 11,800 89,381
Groupe GTM .......................... 9,953 1,033,565
Makita Corp. ........................ 18,000 207,632
National House Industrial Co.
Ltd. .............................. 53,000 406,428
Sho-Bond Corp. ...................... 9,500 173,388
Societe Technip ..................... 10,350 1,264,762
Toda Corp. .......................... 22,000 88,082
------------
5,785,150
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.5%)
BPB PLC ............................. 103,100 625,005
Fujikura Ltd. ....................... 34,000 151,580
Holderbank Financiere Glaris
AG ................................ 1,385 1,763,575
Martin Marietta Materials, Inc. ..... 120,000 5,400,000
Matsushita Electric Works Ltd. ...... 104,000 840,283
Nichiha Corp. ....................... 9,700 57,310
Rugby Group PLC ..................... 447,460 833,196
Unidare PLC* ........................ 51,500 186,964
------------
9,857,913
------------
ELECTRICAL EQUIPMENT (1.2%)
Daikin Industries Ltd. .............. 140,000 902,900
General Electric Co. ................ 209,900 19,100,900
Johnson Electric Holdings Ltd. ...... 258,000 955,679
Legrand SA .......................... 3,800 1,005,374
</TABLE>
55
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Mabuchi Motor Co. ........................ 300 $ 19,045
Sumitomo Electric Industries ............. 56,000 566,787
------------
22,550,685
------------
MACHINERY (1.5%)
AlliedSignal, Inc. ....................... 138,400 6,141,500
Coltec Industries, Inc.* ................. 36,000 715,500
Fujitec Co. Ltd. ......................... 96,000 581,734
IHC Caland N.V. .......................... 5,000 281,562
Ishikawajima Harima Heavy
Industries Co. Ltd. .................... 10,000 18,251
Keyence Corp. ............................ 1,300 141,610
KSB AG* .................................. 2,600 648,739
Legris Industries SA ..................... 17,300 809,574
Mitsubishi Heavy Industries Ltd. 16,000 60,482
Mori Seiki Co. Ltd. ...................... 8,000 98,052
Nitta Corp. .............................. 8,000 51,364
Nitto Kohki Co. Ltd. ..................... 3,700 40,011
Schindler Holding AG
Participating Certificate .............. 915 1,394,504
Schindler Holding AG
Registered ............................. 450 697,697
Siebe PLC ................................ 50,000 999,499
SMC Corp. ................................ 3,000 228,322
Stork N.V. ............................... 18,000 573,649
TI Group PLC ............................. 123,795 940,660
United Technologies Corp. ................ 132,900 12,293,250
Valmet Oyj ............................... 31,000 534,897
Vestas Wind Systems A/S* ................. 3,220 127,235
------------
27,378,092
------------
TOTAL CAPITAL GOODS (3.6%) ............. 67,521,465
------------
CONSUMER CYCLICALS
AIRLINES (0.0%)
Virgin Express Holdings PLC
(ADR)* ................................. 10,400 134,550
------------
APPAREL, TEXTILE (0.3%)
Carli Gry International A/S .............. 300 24,232
Onward Kashiyama Co. Ltd. ................ 79,000 988,783
Tommy Hilfiger Corp.* .................... 77,500 4,843,750
------------
5,856,765
------------
AUTO RELATED (0.3%)
Continental AG ........................... 55,000 1,713,889
Dana Corp. ............................... 50,000 2,675,000
Minebea Co. Ltd. ......................... 16,000 159,400
Sumitomo Rubber Industries,
Inc. ................................... 129,000 696,090
------------
5,244,379
------------
AUTOS & TRUCKS (0.5%)
Bajaj Auto Ltd. (GDR) .................... 7,500 96,375
Harley-Davidson, Inc. .................... 217,700 8,435,875
Honda Motor Co. Ltd. ..................... 4,000 142,548
UMW Holdings BHD ......................... 188,000 84,255
Volkswagen AG ............................ 600 577,211
------------
9,336,264
------------
FOOD SERVICES, LODGING (0.2%)
Accor SA ................................. 1,400 391,699
Choice Hotels Scandinavia ASA* 108,000 324,070
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Compass Group PLC ........................ 171,400 $ 1,972,188
John Q Hammons Hotels, Inc.
(Class A)* ............................. 191,800 1,354,588
------------
4,042,545
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.1%)
Hunter Douglas N.V. ...................... 20,000 1,086,903
Moulinex* ................................ 17,000 441,058
Sony Corp. ............................... 13,200 1,137,931
------------
2,665,892
------------
LEISURE RELATED (1.9%)
Amer Group Ltd. (Series A)* .............. 7,000 135,339
Berjaya Sports Toto Ltd. BHD ............. 140,000 207,457
Canal Plus ............................... 3,150 588,590
Carnival Corp. (Class A) ................. 215,400 8,535,225
Cendant Corp.* ........................... 75,300 1,571,888
Cyrk, Inc.* .............................. 220,600 2,426,600
Disney (Walt) Co. ........................ 47,100 4,948,444
EMI Group PLC ............................ 12,000 105,010
Granada Group PLC ........................ 88,900 1,636,069
Hoyts Cinemas Group+ ..................... 30,000 39,060
Ladbroke Group PLC ....................... 279,118 1,533,564
Mirage Resorts, Inc.* .................... 300,500 6,404,406
Nelvana Ltd.* ............................ 8,000 173,966
Nintendo Co. Ltd. ........................ 1,200 111,239
Nippon Broadcasting System ............... 5,000 211,009
Royal Caribbean Cruises Ltd. ............. 74,100 5,890,950
SHIMANO, INC. ............................ 1,000 25,393
Thomson Travel Group PLC* ................ 110,000 343,520
Toei Co. Ltd. ............................ 8,000 25,220
------------
34,912,949
------------
PHOTO & OPTICAL (0.1%)
Fuji Photo Film Co. ...................... 31,000 1,080,147
Gretag Imaging Group* .................... 10,100 969,552
Noritsu Koki Co. Ltd. .................... 10,200 228,106
------------
2,277,805
------------
RETAIL--GENERAL (3.6%)
Abercrombie & Fitch Co.
(Class A)* ............................. 51,808 2,279,552
Aldeasa SA ............................... 19,800 707,558
BAA PLC .................................. 140,000 1,512,692
Boots Co. PLC ............................ 74,700 1,238,763
Dayton Hudson Corp. ...................... 245,100 11,887,350
Dickson Concepts International
Ltd. ................................... 161,000 224,419
Genesis Direct, Inc.* .................... 70,000 778,750
Home Depot, Inc. ......................... 77,800 6,462,262
K-Mart Corp.* ............................ 185,000 3,561,250
Kingfisher PLC ........................... 76,163 1,227,410
Kohl's Corp.* ............................ 169,500 8,792,812
Kokuyo Co. Ltd. .......................... 1,000 16,953
Limited, Inc. ............................ 172,500 5,714,062
Lindex AB ................................ 18,000 655,510
Paris Miki, Inc. ......................... 4,500 59,115
Proffitt's, Inc.* ........................ 160,100 6,464,038
Sato Corp. ............................... 10,000 163,396
Smith (W.H.) Group PLC ................... 22,500 199,900
Smith (W.H.) Group PLC
(B Shares)* ............................ 25,000 22,336
</TABLE>
56
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Staples, Inc.* ..................... 292,800 $ 8,472,900
Tandy Corp. ........................ 115,000 6,102,188
Vendex International N.V. .......... 7,200 276,909
------------
66,820,125
------------
TOTAL CONSUMER CYCLICALS (7.0%) 131,291,274
------------
CONSUMER NONCYCLICALS
BEVERAGES (1.1%)
Coca-Cola Co. ...................... 175,000 14,962,500
Coca-Cola Enterprises, Inc. ........ 65,700 2,578,725
Diageo PLC ......................... 50,112 594,180
Scottish & Newcastle PLC ........... 100,000 1,416,166
Whitbread PLC ...................... 92,500 1,498,414
------------
21,049,985
------------
CONTAINERS (0.2%)
Owens-Illinois, Inc.* .............. 40,000 1,790,000
Schmalbach Lubeca AG ............... 8,300 2,047,962
Sealed Air Corp.* .................. 12,900 474,075
------------
4,312,037
------------
DRUGS (3.2%)
Astra AB (A Shares) ................ 25,000 510,844
Bristol-Myers Squibb Co. ........... 86,200 9,907,613
Centocor, Inc.* .................... 215,800 7,822,750
Daiichi Pharmaceutical Co. ......... 79,000 1,042,923
Merck KGAA ......................... 18,700 836,756
Merck & Co., Inc. .................. 83,700 11,194,875
Novartis AG ........................ 300 499,571
Orion-Yhtyma Oyj (B Shares)* ....... 37,800 1,165,188
Pfizer, Inc. ....................... 165,500 17,987,781
Sankyo Co. Ltd. .................... 17,000 387,534
Sanofi SA .......................... 7,000 822,985
Santen Pharmaceutical Co. Ltd. ..... 22,000 241,076
Schering Plough Corp. .............. 72,600 6,651,975
Smithkline Beecham PLC ............. 10,000 122,161
Taisho Pharmaceutical Co. .......... 1,000 18,684
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 12,000 250,180
------------
59,462,896
------------
FOODS (1.2%)
Barry Callebaut AG* ................ 4,100 884,542
Campbell Soup Co. .................. 142,300 7,559,687
Huhtamaki Oy Series I .............. 11,550 661,499
Nestle SA .......................... 1,150 2,462,822
Nutreco Holding N.V. ............... 3,900 136,566
Orkla ASA .......................... 33,200 773,151
Parmalat Finanziaria Spa ........... 503,700 1,027,612
Rite Aid Corp. ..................... 120,000 4,507,500
Tyson Foods, Inc. .................. 214,600 4,654,138
------------
22,667,517
------------
HOSPITAL SUPPLIES & SERVICES (1.3%)
Columbia/HCA Healthcare Corp. 270,500 7,878,313
Medtronic, Inc. .................... 184,300 11,749,125
PT Tempo Scan Pacific .............. 206,000 3,142
United HealthCare Corp. ............ 81,700 5,187,950
------------
24,818,530
------------
RETAIL--FOOD (0.3%)
Delhaize-Le Lion SA ................ 8,800 614,723
Familymart Co. ..................... 63,100 2,403,463
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Food Lion, Inc. (Class A) .......... 125,000 $ 1,328,125
Santa Isabel S.A. (ADR) ............ 997 10,967
Seven-Eleven Japan Co. Ltd. ........ 3,200 190,680
Woolworths Ltd. .................... 460,000 1,497,303
------------
6,045,261
------------
SOAPS & TOILETRIES (1.4%)
Avon Products, Inc. ................ 134,400 10,416,000
Estee Lauder Companies
(Class A) ........................ 67,900 4,731,781
Gillette Co. ....................... 200,800 11,382,850
Kao Corp. .......................... 11,000 169,817
------------
26,700,448
------------
TOBACCO (1.1%)
Imperial Tobacco Group PLC ......... 11,600 85,625
Japan Tobacco, Inc. ................ 150 1,016,087
Philip Morris Cos., Inc. ........... 413,300 16,273,687
Seita .............................. 27,700 1,255,031
Swedish Match AB ................... 50,492 167,738
Tabacalera SA-A .................... 60,000 1,228,562
------------
20,026,730
------------
TOTAL CONSUMER NONCYCLICALS (9.8%)
185,083,404
------------
CREDIT SENSITIVE
BANKS (3.0%)
Allied Irish Bank .................. 225,000 3,255,887
AMMB Holdings BHD .................. 60,000 31,516
Banca Nazionale del Lavoro
(BNL)* ........................... 5,500 145,482
Banco Bilbao Vizcaya SA ............ 54,900 2,817,496
Banco Central
Hispanoamericano SA .............. 6,900 216,876
Banco Santander SA ................. 58,200 1,489,632
Bangkok Bank Public Co. Ltd. ....... 20,000 24,645
BankAmerica Corp. .................. 45,800 3,958,837
Bank of Tokyo-Mitsubishi Ltd. ...... 15,000 158,960
Banque Nationale de Paris .......... 13,700 1,119,107
Barclays PLC ....................... 18,000 519,439
BPI-SGPS SA ........................ 12,000 387,413
Chase Manhattan Corp. .............. 220,400 16,640,200
Corporacion Bancaria de
Espana SA ........................ 48,000 1,076,752
Credito Italiano Spa ............... 500,000 2,618,398
Dao Heng Bank Group Ltd. ........... 30,000 42,592
Erste Bank Der
Oesterreichischen
Sparkassen AG .................... 3,740 226,836
Forenings Sparbanken AB
(A Shares) ....................... 6,900 207,597
Istituto Mobiliare Italiano ........ 84,700 1,334,722
Long-Term Credit Bank of Japan 230,000 134,396
National Bank of Canada ............ 28,000 547,042
National Westminster Bank PLC 6,000 107,315
NationsBank Corp. .................. 130,000 9,945,000
Paribas* ........................... 93 9,950
Philippine Commercial
International Bank ............... 5,000 18,225
PT Bank Dagang Nasional
Indonesia Tbk .................... 1,230,000 6,254
Seventy-Seven Bank Co. Ltd. ........ 123,000 1,029,289
Shizuoka Bank Ltd. ................. 1,000 10,749
</TABLE>
57
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Skandinaviska Enskilda Banken
(Series A) ....................... 44,200 $ 756,337
Societe Generale ................... 9,028 1,876,510
State Bank of India (GDR) .......... 27,000 319,950
State Street Corp. ................. 43,900 3,051,050
Sumitomo Bank Ltd. ................. 8,000 77,911
Suncorp-Metway Ltd. ................ 32,858 79,858
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ...... 2,875 170
Toho Bank .......................... 10,000 40,182
United Overseas Bank Ltd. .......... 4,000 12,430
Wing Hang Bank Ltd. ................ 161,000 215,068
Yamaguchi Bank ..................... 70,000 898,860
Zions Bancorp. ..................... 44,400 2,358,750
-----------
57,767,683
-----------
FINANCIAL SERVICES (2.3%)
Aiful Corp. ........................ 5,800 283,264
Associates First Capital Corp.
(Class A) ........................ 111,200 8,548,500
Credit Saison Co. .................. 24,400 484,057
MBNA Corp. ......................... 438,250 14,462,250
Merrill Lynch & Co., Inc. .......... 65,800 6,070,050
Morgan Stanley Dean Witter
& Co. ............................ 130,000 11,878,750
Newcourt Credit Group, Inc. ........ 45,000 2,213,438
Nichiei Co. Ltd. ................... 3,200 217,919
Peregrine Investment Holdings
Ltd. ............................. 472,000 0
Sanyo Shinpan Finance Co. Ltd. ..... 1,100 38,883
Takefuji Corp. ..................... 800 36,936
Worms Et Compagnie ................. 2,500 159,570
-----------
44,393,617
-----------
INSURANCE (3.6%)
ASR Verzekeringsgroep N.V. ......... 10,000 848,866
Catalana Occidente SA .............. 2,060 65,152
CNA Financial Corp.* ............... 42,300 1,969,594
Commercial Union PLC ............... 52,033 971,484
Corporacion Mapfre ................. 18,000 631,497
Fortis Amev N.V. ................... 37,281 2,183,724
ING Groep N.V. ..................... 50,000 3,275,463
Irish Life PLC ..................... 100,000 942,973
Kingsway Financial Services* ....... 20,000 186,878
Life Re Corp. ...................... 105,500 8,651,000
MGIC Investment Corp. .............. 47,000 2,681,937
PennCorp Financial Group, Inc. ..... 121,700 2,494,850
Providian Financial Corp. .......... 102,000 8,013,375
QBE Insurance Group Ltd. ........... 40,000 141,360
Royal & Sun Alliance Insurance
Group PLC ........................ 100,936 1,044,253
SunAmerica, Inc. ................... 115,700 6,645,519
Travelers Group, Inc. .............. 354,000 21,461,250
Trygg-Hansa AB (B Shares)* ......... 3,600 110,116
United Assurance Group PLC ......... 71,600 679,172
Willis Corroon Group PLC
(ADR) ............................ 249,000 3,128,063
Zurich Versicherungs ............... 2,130 1,360,322
-----------
67,486,848
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (0.2%)
Asticus AB* ........................ 20,000 $ 220,635
City Developments Ltd. ............. 8,000 22,350
Daibiru Corp. ...................... 4,000 25,797
Glenborough Realty Trust, Inc. ..... 70,000 1,846,250
Mandamus AB* ....................... 345 2,162
Sumitomo Realty &
Development Co. Ltd. ............. 14,000 61,809
Unibail SA ......................... 7,880 1,018,960
-----------
3,197,963
-----------
UTILITY--ELECTRIC (0.6%)
AES Corp.* ......................... 103,400 5,434,962
Cia Paranaense de Energia-Copel
(ADR) ............................ 54,000 499,500
Electricidade de Portugal SA ....... 5,000 116,280
Hong Kong Electric Holdings
Ltd. ............................. 179,000 554,466
Manila Electric Co. ................ 16,620 43,842
National Grid Group PLC ............ 20,000 134,937
Powergen PLC ....................... 108,000 1,493,387
Veba AG ............................ 35,000 2,387,025
Viag AG ............................ 800 541,170
-----------
11,205,569
-----------
UTILITY--GAS (0.2%)
Anglian Water PLC .................. 128,600 1,804,008
Scottish Power PLC ................. 220,000 1,928,858
-----------
3,732,866
-----------
UTILITY--TELEPHONE (0.5%)
British Telecommunications PLC 186,600 2,306,012
Cable & Wireless PLC ............... 109,200 1,327,615
Telecom Italia Spa ................. 250,000 1,841,039
Telefonica de Espana ............... 57,000 2,635,344
Telekom Malaysia BHD ............... 38,500 64,936
Telephone & Data Systems, Inc. ..... 20,000 787,500
-----------
8,962,446
-----------
TOTAL CREDIT SENSITIVE (10.4%) 196,746,992
-----------
ENERGY
COAL & GAS PIPELINES (0.0%)
BG PLC ............................. 164,117 949,675
OMV AG ............................. 1,400 187,579
-----------
1,137,254
-----------
OIL--DOMESTIC (0.9%)
Apache Corp. ....................... 80,000 2,520,000
Louis Dreyfus Natural Gas
Corp.* ........................... 245,400 4,647,262
Tom Brown, Inc.* ................... 121,000 2,276,313
USX-Marathon Group ................. 215,700 7,401,206
-----------
16,844,781
-----------
OIL--INTERNATIONAL (0.4%)
British Petroleum Co. PLC .......... 98,700 1,440,611
Gulf Indonesia Resources Ltd.* ..... 17,900 205,850
Repsol SA .......................... 13,950 768,683
Shell Transport & Trading Co.
PLC .............................. 178,950 1,261,137
Total SA--B ........................ 26,234 3,409,661
-----------
7,085,942
-----------
</TABLE>
58
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
OIL--SUPPLIES & CONSTRUCTION (1.3%)
BJ Services Co.* .................... 118,100 $ 3,432,281
Canadian Fracmaster Ltd.+ ........... 47,100 297,666
Canadian Fracmaster Ltd.
Installment Receipt ............... 133,800 455
Dresser Industries, Inc. ............ 259,800 11,447,437
Fugro N.V. .......................... 10,000 398,367
Noble Drilling Corp.* ............... 347,100 8,352,094
Parker Drilling Co.* ................ 50,700 358,069
------------
24,286,369
------------
TOTAL ENERGY (2.6%) ............... 49,354,346
------------
TECHNOLOGY
ELECTRONICS (2.8%)
Altera Corp.* ....................... 201,280 5,950,333
Cisco Systems, Inc.* ................ 300,500 27,664,781
Disco Corp. ......................... 4,000 111,095
Fujimi, Inc. ........................ 3,800 139,258
Intel Corp. ......................... 59,900 4,440,088
Leitch Technology Corp.* ............ 9,500 159,781
Micronics Japan Co. Ltd. ............ 7,000 98,471
Murata Manufacturing Co., Ltd. ...... 8,000 259,703
Nikon Corp. ......................... 8,000 57,596
Rohm Co. Ltd. ....................... 2,000 205,598
Sankyo Engineering Co. .............. 6,000 23,330
SMH AG .............................. 4,850 809,560
Solectron Corp.* .................... 181,600 7,638,550
Sterling Commerce, Inc.* ............ 40,000 1,940,000
TDK Corp. ........................... 1,000 73,943
Texas Instruments, Inc. ............. 40,000 2,332,500
Tokyo Cathode Laboratory Co. . 5,400 42,461
Varitronix International Ltd. ....... 335,000 670,173
Yokogawa Electric Corp. ............. 12,000 64,060
------------
52,681,281
------------
OFFICE EQUIPMENT (2.3%)
Barco N.V. .......................... 4,314 1,205,416
Bay Networks, Inc.* ................. 84,900 2,738,025
Canon, Inc. ......................... 2,000 45,448
Ceridian Corp.* ..................... 186,300 10,945,125
Compaq Computer Corp. ............... 361,300 10,251,888
Dell Computer Corp.* ................ 155,500 14,432,344
Policy Management Systems
Corp.* ............................ 97,800 3,838,650
------------
43,456,896
------------
OFFICE EQUIPMENT SERVICES (0.7%)
Canon Chemicals, Inc.* .............. 6,000 63,194
Computer Sciences Corp. ............. 47,500 3,040,000
Data Communication System Co. 2,000 36,070
First Data Corp. .................... 257,200 8,567,975
Fuji Soft ABC, Inc. ................. 4,000 136,200
INES Corp. .......................... 6,000 41,120
Mettler-Toledo International,
Inc.* ............................. 45,900 920,869
Nippon System Development ........... 4,200 99,985
------------
12,905,413
------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (1.7%)
Asia Satellite
Telecommunications
Holdings Ltd. ..................... 120,000 $ 198,245
Clearnet Communications, Inc.
(Class A)* ........................ 60,000 660,000
DDI Corp. ........................... 208 724,744
Energis PLC* ........................ 100,000 1,523,046
Global TeleSystems Group, Inc.* 8,000 390,000
Helsinki Telephone Corp. ............ 18,300 851,155
Keppel Telecommunications &
Transportation Ltd. ............... 24,000 11,364
Nextel Communications, Inc.
(Class A)* ........................ 77,900 1,937,763
PT Indosat .......................... 419,000 488,597
PT Telekomunikasi Indonesia ......... 309,000 87,463
SK Telecom Co. Ltd. (ADR) ........... 34,001 189,129
Tele-Communications TCI
Ventures Group (Class A)* ......... 220,000 4,413,750
Tellabs, Inc.* ...................... 201,700 14,446,762
Videsh Sanchar Nigam Ltd.
(GDR)* ............................ 14,000 130,900
Videsh Sanchar Nigam Ltd.
(GDR)*+ ........................... 14,400 149,040
Vodafone Group PLC .................. 100,000 1,270,040
WorldCom, Inc.* ..................... 111,036 5,378,306
------------
32,850,304
------------
TOTAL TECHNOLOGY (7.5%) ........... 141,893,894
------------
DIVERSIFIED
MISCELLANEOUS (1.4%)
BTR PLC ............................. 146,250 415,205
BTR PLC (B Shares)* ................. 180,000 103,707
Citic Pacific Ltd. .................. 60,000 106,092
First Pacific Co. ................... 397,685 166,814
Hagemeyer N.V. ...................... 8,000 346,235
Hutchison Whampoa ................... 34,000 179,479
Montedison Spa ...................... 1,113,000 1,381,189
Smith (Howard) Ltd. ................. 35,000 206,150
Swire Pacific Ltd. (Class A) ........ 57,000 215,185
Tomkins PLC ......................... 160,000 869,072
Tyco International Ltd. ............. 261,000 16,443,000
U.S. Industries, Inc. ............... 146,500 3,625,875
Vivendi ............................. 8,259 1,763,104
------------
TOTAL DIVERSIFIED (1.4%) .......... 25,821,107
------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (46.6%)
(Cost $651,341,854)................ 878,663,698
------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA ......................... 15,180 1,510,845
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
ProSieben Media AG* ................. 11,500 598,115
------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A ............... 19,300 1,225,550
------------
TOTAL BUSINESS SERVICES (0.1%)..... 1,823,665
------------
</TABLE>
59
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------
<S> <C> <C>
CAPITAL GOODS (0.2%)
AEROSPACE
Loral Space & Communications
6.0% Conv. ........................ 42,900 $ 3,276,487
------------
CONSUMER CYCLICALS
AIRLINES (0.2%)
Continental Airlines
Finance Trust
8.5% Conv. ........................ 24,600 3,127,275
------------
LEISURE RELATED (0.1%)
Royal Caribbean Cruises Ltd.
7.25% Series A .................... 19,800 2,494,800
------------
RETAIL--GENERAL (0.0%)
Hornbach Holding AG ................. 8,010 735,046
------------
TOTAL CONSUMER CYCLICALS (0.3%) 6,357,121
------------
CONSUMER NONCYCLICALS (0.1%)
CONTAINERS
Owens-Illinois, Inc.
4.75% Conv. ....................... 20,000 1,042,500
------------
CREDIT SENSITIVE
BANKS (0.0%)
Bank Austria AG ..................... 6,000 487,259
------------
INSURANCE (0.1%)
Life Re Capital Trust II
6.0% Conv. ........................ 21,000 1,601,250
------------
UTILITY--ELECTRIC (0.1%)
AES Trust I
5.375% Conv. Series A ............. 32,700 2,550,600
------------
TOTAL CREDIT SENSITIVE (0.2%) ..... 4,639,109
------------
TECHNOLOGY
ELECTRONICS (0.1%)
L&H Capital Trust I
4.75% Conv.+ ...................... 22,300 1,416,050
------------
TELECOMMUNICATIONS (0.6%)
ICG Communications, Inc.
6.75% Conv. ....................... 14,200 1,182,150
Intermedia
Communications, Inc.:
7.0% Conv.+ ....................... 28,900 1,589,500
7.0% Conv. Series D ............... 21,000 1,155,000
IXC Communications, Inc.
6.75% Conv.+ ...................... 28,800 1,382,400
Nextel Strypes Trust
7.25% Conv. ....................... 66,000 1,468,500
Nokia Oyj (A Shares) ................ 28,200 2,075,439
Skytel Communications, Inc.
$2.25 Conv. ....................... 14,300 500,500
WinStar Communications, Inc.
7.0% Conv.+ ....................... 36,100 1,980,988
------------
11,334,477
------------
TOTAL TECHNOLOGY (0.7%) ........... 12,750,527
------------
TOTAL PREFERRED STOCKS (1.7%)
(Cost $24,532,495) ................ 31,400,254
------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.1%)
Clear Channel
Communications, Inc.
2.625% Conv., 04/01/03 ............ $ 745,000 $ 800,875
P-Com, Inc.:
4.25% Conv., 11/01/02+ ............ 1,355,000 980,681
4.25% Conv., 11/01/02 .............. 400,000 289,500
-----------
2,071,056
-----------
PROFESSIONAL SERVICES (0.1%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 .............. 550,000 1,517,313
Personnel Group of America:
5.75% Conv., 07/01/04 ............. 330,000 420,337
5.75% Conv., 07/01/04+ ............ 370,000 471,288
-----------
2,408,938
-----------
TOTAL BUSINESS SERVICES (0.2%) 4,479,994
-----------
CAPITAL GOODS (0.1%)
AEROSPACE
Orbital Sciences Corp.:
5.0% Conv., 10/01/02+ ............. 690,000 1,035,000
5.0% Conv., 10/01/02 ............... 40,000 60,000
-----------
1,095,000
-----------
CONSUMER CYCLICALS
LEISURE RELATED (0.8%)
Royal Caribbean Cruises Ltd.
7.5%, 10/15/27 .................... 14,150,000 14,798,636
-----------
RETAIL--GENERAL (0.1%)
Home Depot, Inc.
3.25% Conv. Sub. Note,
10/01/01 .......................... 955,000 1,776,300
Office Depot, Inc.
Zero Coupon, 11/01/08 ............. 895,000 688,031
-----------
2,464,331
-----------
TOTAL CONSUMER CYCLICALS (0.9%) 17,262,967
-----------
CONSUMER NONCYCLICALS
DRUGS (0.4%)
Centocor, Inc.
4.75% Conv., 02/15/05+ ............ 770,000 757,488
MedImmune, Inc.:
7.0% Conv., 07/01/03 .............. 810,000 2,608,200
7.0% Conv. Sub. Note,
07/01/03+ ......................... 500,000 1,610,000
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00 ............. 695,000 902,631
4.25% Conv., 05/31/00+ ............ 580,000 753,275
-----------
6,631,594
-----------
HOSPITAL SUPPLIES & SERVICES (0.1%)
Alternative Living Services Ltd.
5.25% Conv., 12/15/02 ............. 585,000 654,469
FPA Medical Management, Inc.
6.5% Conv., 12/15/01 (a)+ ......... 1,130,000 135,600
</TABLE>
60
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
RES-Care, Inc.
6.0% Conv., 12/01/04+ ....................... $ 1,095,000 $ 1,253,775
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ........................ 500,000 555,000
-----------
2,598,844
-----------
MEDIA & CABLE (1.8%)
Time Warner Entertainment Co.
8.375%, 03/15/23 ............................ 23,580,000 27,619,490
Turner Broadcasting System, Inc.
8.375%, 07/01/13 ............................ 5,530,000 6,338,375
-----------
33,957,865
-----------
TOTAL CONSUMER NONCYCLICALS (2.3%) 43,188,303
-----------
CREDIT SENSITIVE
BANKS (1.4%)
ABN Amro Bank NV
7.125%, 06/18/07 ............................ 25,375,000 26,657,452
Sumitomo Bank International
0.75% Conv., 05/31/01 Yen 101,000,000 809,669
-----------
27,467,121
-----------
FINANCIAL SERVICES (1.1%)
Lehman Bros, Inc.
6.5%, 04/15/08 .............................. $ 18,530,000 18,566,282
RAC Financial Group, Inc.:
7.25% Conv., 08/15/03 ....................... 245,000 579,578
7.25% Conv. Sub. Note,
08/15/03+ ................................... 625,000 1,478,516
-----------
20,624,376
-----------
MORTGAGE RELATED (12.3%)
Federal Home Loan
Mortgage Corp.:
7.0%, 09/01/11 .............................. 22,780,440 23,186,228
7.0%, 01/01/12 .............................. 4,876,233 4,963,093
Federal National Mortgage
Association:
6.5%, 06/01/11 .............................. 37,221,791 37,477,505
6.5%, 09/01/11 .............................. 15,354,062 15,459,544
7.0%, 05/01/26 .............................. 24,772,942 25,128,929
7.0%, 09/01/27 .............................. 8,286,005 8,402,507
7.0%, 01/01/28 .............................. 37,871,731 38,404,018
Government National Mortgage
Association:
7.5%, 12/15/25 .............................. 7,012,737 7,203,414
7.5%, 01/15/27 .............................. 6,995,422 7,185,627
7.5%, 04/15/27 .............................. 6,665,654 6,846,894
7.5%, 06/15/27 .............................. 7,035,685 7,231,347
7.0%, 07/15/27 .............................. 10,613,848 10,779,742
7.5%, 09/15/27 .............................. 917,742 942,695
7.0%, 02/15/28 .............................. 26,681,278 27,098,306
6.5%, 03/15/28 .............................. 12,190,360 12,159,884
-----------
232,469,733
-----------
UTILITY--ELECTRIC (1.4%)
Consolidated Edison, Inc.
6.25%, 02/01/08 ............................. 25,780,000 25,758,087
National Grid Group PLC
4.25% Conv., 02/17/08 ....................... 4,000 7,624
-----------
25,765,711
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT (20.2%)
U.S. Treasury:
6.375% Note, 05/15/99 ....................... $ 52,000,000 $52,357,500
6.0% Note, 08/15/00 ......................... 48,620,000 49,075,812
6.25% Note, 04/30/01 ........................ 43,000,000 43,792,834
6.5% Note, 08/31/01 ......................... 82,740,000 84,963,638
6.5% Note, 05/31/02 ......................... 43,460,000 44,899,612
5.75% Note, 08/15/03 ........................ 21,700,000 21,930,563
6.875% Note, 05/15/06 ....................... 450,000 487,406
6.125% Bond, 11/15/27 ....................... 77,995,000 83,576,556
-----------
381,083,921
-----------
TOTAL CREDIT SENSITIVE (36.4%) 687,410,862
-----------
ENERGY
GAS (0.4%)
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ ........................... 7,730,000 7,717,717
-----------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07 .................................... 1,480,000 1,713,100
Nabors Industries, Inc.
5.0% Conv., 05/15/06 ........................ 705,000 863,625
Seacor Holdings, Inc.:
5.375% Conv., 11/15/06+ ...................... 135,000 151,200
5.375% Conv., 11/15/06 ....................... 150,000 168,000
-----------
2,895,925
-----------
TOTAL ENERGY (0.6%) ......................... 10,613,642
-----------
TECHNOLOGY
ELECTRONICS (0.9%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ....................... 1,820,000 1,669,850
HNC Software, Inc.
4.75% Conv., 03/01/03 ....................... 950,000 1,080,625
Level One Communications, Inc.:
4.0% Conv., 09/01/04 ......................... 520,000 573,950
4.0% Conv., 09/01/04+ ........................ 790,000 871,963
Network Associates, Inc.
Zero Coupon, 02/13/18+ ...................... 3,200,000 1,500,000
Photronics, Inc.
6.0% Conv., 06/01/04 ........................ 1,840,000 1,987,200
Sanmina Corp.
5.5% Conv., 08/15/02+ ....................... 1,265,000 3,893,037
SCI Systems, Inc.
5.0% Conv., 05/01/06+ ....................... 1,590,000 2,563,875
Solectron Corp.
6.0% Conv., 03/01/06+ ....................... 1,445,000 1,954,362
Wind River Systems, Inc.
5.0% Conv., 08/01/02+ ....................... 300,000 298,500
-----------
16,393,362
-----------
TELECOMMUNICATIONS (0.1%)
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 ........................ 375,000 474,375
5.75% Conv. Sub. Note,
10/01/06+ ................................... 1,605,000 2,030,325
-----------
2,504,700
-----------
TOTAL TECHNOLOGY (1.0%) ..................... 18,898,062
-----------
TOTAL LONG-TERM DEBT SECURITIES (41.5%)
(Amortized Cost $761,102,206)................ 782,948,830
-----------
</TABLE>
61
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
Chase Manhattan Corp.
5.28%, due 08/28/98 ..................... $ 4,175,070 $ 4,139,828
Suntrust Banks, Inc.:
5.51%, due 07/17/98 ...................... 3,517,131 3,508,533
5.52%, due 07/27/98 ...................... 20,099,501 20,019,662
--------------
TOTAL BANKERS' ACCEPTANCES (1.5%) 27,668,023
--------------
COMMERCIAL PAPER
Bankers Trust New York Corp.
5.52%, due 08/06/98 ..................... 2,194,163 2,182,117
Barton Capital Corp.
1.05%, due 07/01/98 ..................... 28,531,000 28,526,840
Dresdner Bank AG
6.0%, due 07/01/98 ...................... 26,400,000 26,400,000
Salomon Smith Barney
Holdings, Inc.
5.59%, due 08/12/98 ..................... 17,000,000 16,889,925
UBS Finance Delaware, Inc.
5.55%, due 08/10/98 ..................... 25,000,000 24,846,666
--------------
TOTAL COMMERCIAL PAPER (5.2%) 98,845,548
--------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
5.85%, due 07/01/98 ...................... 19,000,000 19,000,000
Federal National Mortgage
Association:
5.6%, due 07/06/98 ...................... 15,000,000 14,988,333
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
5.51%, due 07/21/98 ..................... $ 7,680,000 $ 7,656,491
5.48%, due 07/29/98 ..................... 11,000,000 10,953,286
--------------
TOTAL U.S. GOVERNMENT
AGENCIES (2.8%) ...................... 52,598,110
--------------
TOTAL SHORT-TERM DEBT SECURITIES (9.5%)
(Cost $179,111,681) ...................... 179,111,681
--------------
TOTAL INVESTMENTS (99.3%)
(Cost/Amortized Cost $1,616,088,236)
1,872,124,463
OTHER ASSETS
LESS LIABILITIES (0.7%) ................. 13,742,248
--------------
NET ASSETS (100.0%) ....................... $1,885,866,711
==============
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
<S> <C>
As a Percentage of Total Investments
Australia ............................................................ 0.1%
Canada ............................................................... 0.1
France ............................................................... 1.0
Germany .............................................................. 0.7
Japan ................................................................ 1.3
Latin America ........................................................ 0.1
Netherlands .......................................................... 0.7
Scandinavia .......................................................... 0.6
Southeast Asia ....................................................... 0.3
Spain ................................................................ 0.6
Switzerland .......................................................... 0.7
United Kingdom ....................................................... 2.2
United States** ...................................................... 90.6
Other European Countries ............................................. 1.0
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 9.6%.
+ 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, 1998, these securities amounted to $36,311,306 or
1.9% of net assets.
(a) Subsequent to June 30, 1998, on July 15, 1998, this security
defaulted on its interest payment.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
62
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.6%)
AGA AB (A Shares) ................... 3,400 $ 53,278
Akzo Nobel N.V. ..................... 6,000 1,334,383
Bayer AG ............................ 25,400 1,311,195
Georgia Gulf Corp. .................. 292,000 6,661,250
GP Batteries International Ltd. ..... 180,000 328,144
GP Batteries International Ltd.--
Warrants (expire 11/15/00)* ....... 5,750 2,995
Imperial Chemical Industries
PLC ............................... 15,000 240,982
Indo Gulf Fertilisers &
Chemicals Corp. Ltd. (GDR) + 50,000 41,765
Ishihara Sangyo Kaisha Ltd.* ........ 40,000 55,403
Johnson Matthey PLC ................. 25,000 224,616
L'Air Liquide ....................... 2,289 378,566
Linde AG ............................ 100 70,141
Rhodia SA* .......................... 10,300 287,157
Royal Group Technologies Ltd.*....... 10,000 288,811
Solvay Et Cie Societe Anonyme ....... 1,200 95,110
Sumitomo Chemical Co. Ltd. .......... 28,000 86,452
Toray Industries, Inc. .............. 29,000 150,628
UBE Industries Ltd. ................. 14,000 18,179
--------------
11,629,055
--------------
CHEMICALS--SPECIALTY (0.1%)
Kyowa Hakko Kogyo Co. ............... 8,000 31,741
NGK Insulators ...................... 6,000 52,157
SGL Carbon AG + ..................... 15,000 1,754,921
UCAR International, Inc.* ........... 5,000 145,938
--------------
1,984,757
--------------
METALS & MINING (0.3%)
Bethlehem Steel Corp.* .............. 330,000 4,104,375
Degussa AG .......................... 2,500 154,006
Granges AB .......................... 550 10,066
Great Central Mines Ltd. ............ 75,000 71,610
Japan Energy Corp. .................. 19,000 20,149
Randgold Resources Ltd.
(GDR)*+ ........................... 7,600 40,888
Rio Tinto Ltd. ...................... 5,800 69,043
Rio Tinto PLC ....................... 27,615 311,291
Sons of Gwalia Ltd. ................. 25,229 62,567
Toho Titanium ....................... 47,000 366,181
WMC Ltd. ............................ 40,700 122,637
--------------
5,332,813
--------------
PAPER (0.3%)
Amcor Ltd. .......................... 8,900 39,013
Enso Oyj (R Shares) ................. 30,000 324,484
Grupo Industrial Durango
(ADR)* ............................ 12,000 106,500
Jefferson Smurfit Corp.* ............ 79,300 1,246,497
Mayr-Melnhof Karton AG .............. 22,000 1,438,305
Nippon Paper Industries Co. ......... 2,000 8,339
Stone Container Corp.* .............. 123,000 1,921,875
Svenka Cellulosa (Series B) ......... 3,200 82,838
UPM-Kymmene Oyj ..................... 3,292 90,668
--------------
5,258,519
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
STEEL (0.0%)
Broken Hill Proprietary Co. Ltd. 50,000 $ 423,151
Kawasaki Steel Corp. ................ 54,000 97,388
Nippon Steel Corp. .................. 191,000 336,200
NKK Corp. ........................... 85,000 81,554
Sumitomo Metal Industries ........... 254,000 408,614
--------------
1,346,907
--------------
TOTAL BASIC MATERIALS (1.3%) ...... 25,552,051
--------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.6%)
B.U.S. Berzelius Umwelt-Service
AG ................................ 21,600 446,731
Daiseki Co. Ltd. .................... 3,400 20,113
Matsuda Sangyo Co. Ltd. ............. 9,000 69,470
Powerscreen International PLC ....... 160,000 240,481
Rentokil Initial PLC ................ 160,000 1,151,637
Tomra Systems ASA ................... 95,000 2,850,620
Waste Management, Inc. .............. 194,200 6,797,000
--------------
11,576,052
--------------
PRINTING, PUBLISHING &
BROADCASTING (4.3%)
British Sky Broadcasting Group
PLC ............................... 50,476 362,891
Cablevision Systems Corp.
(Class A)* ........................ 92,000 7,682,000
CBS Corp. ........................... 604,250 19,184,938
Comcast Corp. (Class A) SPL ......... 155,000 6,292,031
Dai Nippon Printing Co. Ltd. ........ 19,000 303,600
Donnelley (R.R.) & Sons Co. ......... 39,800 1,820,850
Elsevier N.V. ....................... 66,445 1,003,227
Gannett Co. ......................... 78,100 5,549,981
Havas ............................... 200 16,966
Liberty Media Group (Class A)* 379,050 14,711,878
Mediaset Spa ........................ 150,000 957,734
News Corp. Ltd. (ADR) ............... 59,900 489,480
Nippon Television Network
Corp. ............................. 1,450 420,502
Pegasus Communications Corp.
(Class A)* ........................ 1,128 26,508
Reed International PLC .............. 120,000 1,086,172
Schibsted ASA ....................... 14,000 235,616
Seat Spa* ........................... 2,800,000 1,890,987
Star Publications BHD ............... 20,000 16,770
Takara Printing Co. ................. 8,000 28,740
Tele-Communications, Inc.
(Class A)* ........................ 383,000 14,721,563
Tele-Communications
International, Inc.* .............. 44,700 898,191
Tokyo Broadcasting System, Inc. 81,000 905,713
Toppan Printing Co. ................. 7,000 74,939
Viacom, Inc. (Class B)* ............. 70,000 4,077,500
--------------
82,758,777
--------------
PROFESSIONAL SERVICES (0.2%)
Adecco SA* .......................... 275 124,101
Adecco SA--Rights (expire
07/02/98)* ........................ 275 0
Alvern Norway ASA* .................. 75,000 92,955
Apcoa Parking AG .................... 3,000 216,246
Content Beheer N.V.+ ................ 50,000 1,709,045
</TABLE>
63
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Meitec .............................. 22,600 $ 782,571
Secom Co. ........................... 2,000 115,568
WPP Group PLC ....................... 200,000 1,311,790
--------------
4,352,276
--------------
TRUCKING, SHIPPING (0.7%)
Brambles Industries Ltd. ............ 80,000 1,571,827
Frontline Ltd.* ..................... 1,305,400 851,533
Frontline Ltd.--Warrants (expire
05/11/01)* ........................ 76,080 0
Irish Continental Group PLC ......... 30,000 481,723
Knightsbridge Tankers Ltd. .......... 110,700 2,961,225
Marine Transport Corp.* ............. 67,790 275,397
Mitsui O.S.K. Lines Ltd. ............ 19,000 32,347
Nippon Yusen K.K. ................... 13,000 44,077
OMI Corp.* .......................... 677,900 5,423,200
Peninsular & Oriental Steam
Navigation Co. .................... 10,466 150,838
Yamato Transport Co. Ltd. ........... 34,000 381,402
--------------
12,173,569
--------------
TOTAL BUSINESS SERVICES (5.8%)..... 110,860,674
--------------
CAPITAL GOODS
AEROSPACE (0.1%)
British Aerospace ................... 120,000 919,840
Rolls-Royce PLC ..................... 22,528 93,114
--------------
1,012,954
--------------
BUILDING & CONSTRUCTION (0.1%)
ABB AG* ............................. 200 295,573
CSR Ltd. ............................ 16,900 48,828
Daito Trust Construction Co.
Ltd. .............................. 17,200 130,284
Hochtief AG ......................... 1,500 71,943
ITC Corp. Ltd. ...................... 493,200 2,483
Japan Industrial Land
Development ....................... 19,000 31,525
Kaneshita Construction .............. 26,000 135,421
MacMahon Holdings Ltd. .............. 600,000 161,820
Mancon BHD .......................... 47,999 4,395
Metacorp BHD* ....................... 10,000 2,891
Mitsui Home Co. Ltd. ................ 20,000 89,597
Nanno Construction Co. Ltd. ......... 23,000 31,525
Nippon Denwa Shisetsu ............... 20,000 67,090
Nishimatsu Construction Co. ......... 4,000 19,622
Obayashi Corp. ...................... 12,000 50,902
Ohmoto Gumi Co. Ltd. ................ 12,000 69,254
Oriental Construction Co. ........... 4,000 19,795
PS Corp. ............................ 26,600 108,611
Sanyo Engineering &
Construction Co. .................. 9,000 34,151
Sho-Bond Corp. ...................... 48,000 876,064
Skanska AB (Series B) ............... 1,620 72,704
Suido Kiko Kaisha ................... 8,000 21,353
Toda Corp. .......................... 25,000 100,094
United Engineers Malaysia BHD 11,000 4,479
Wesco, Inc. ......................... 4,300 11,477
YTL Corp. BHD ....................... 16,500 12,404
--------------
2,474,285
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
BUILDING MATERIALS & FOREST
PRODUCTS (0.8%)
Blue Circle Industries PLC .......... 13,338 $ 75,399
BPB PLC ............................. 90,000 545,591
Chichibu Onoda Cement Co. ........... 11,000 19,918
Cie de St. Gobain ................... 3,150 583,902
Dahl International AB+ .............. 36,000 663,407
Fujikura Ltd. ....................... 132,000 588,487
Furukawa Electric Co. ............... 13,000 43,796
Heidelberg Zement AG ................ 1,100 104,297
Holderbank Financiere Glaris
AG ................................ 80 101,867
Lafarge SA .......................... 6,000 620,091
Martin Marietta Materials, Inc. ..... 201,200 9,054,000
Nichiha Corp. ....................... 54,900 324,362
Portland Valderrivas SA ............. 4,400 539,133
Rexam PLC ........................... 13,121 57,246
RMC Group PLC ....................... 4,518 78,393
Unidare PLC* ........................ 229,900 834,623
Wolseley PLC ........................ 10,088 59,302
--------------
14,293,814
--------------
ELECTRICAL EQUIPMENT (1.3%)
Alcatel Alsthom ..................... 6,000 1,221,331
Daikin Industries Ltd. .............. 5,000 32,246
General Electric Co. ................ 235,000 21,385,000
General Electric Co. PLC ............ 61,328 528,990
Kinden Corp. ........................ 5,000 60,597
Mabuchi Motor Co. ................... 1,400 88,876
Schneider SA ........................ 2,250 179,368
Siemens AG .......................... 14,750 898,004
Sumitomo Electric Industries ........ 31,000 313,757
--------------
24,708,169
--------------
MACHINERY (1.5%)
AlliedSignal, Inc. .................. 141,800 6,292,375
Amada Co. Ltd. ...................... 5,000 24,347
Asahi Diamond Industry Co.
Ltd. .............................. 20,000 90,175
Cie Generale de Geophysique
SA (ADR)* ......................... 84,000 2,467,500
Coltec Industries, Inc.* ............ 37,100 737,362
Construcciones y Auxiliar de
Ferrocarrites SA .................. 3,000 117,379
Ebara Corp. ......................... 5,000 44,510
Enshu* .............................. 38,000 65,791
Fanuc Ltd. .......................... 5,900 204,300
IHC Caland N.V. ..................... 14,000 788,374
Ishikawajima Harima Heavy
Industries Co. Ltd. ............... 62,000 113,158
Kalmar Industries AB+ ............... 16,050 241,444
Kawasaki Heavy Industries Ltd. ...... 112,000 226,230
Keyence Corp. ....................... 10,200 1,111,095
Mitsubishi Heavy Industries Ltd. 130,000 491,415
Mori Seiki Co. Ltd. ................. 8,000 98,052
Namura Shipbuilding ................. 8,000 18,814
Nireco .............................. 9,000 44,149
Nitta Corp. ......................... 38,600 247,829
Nitto Kohki Co. Ltd. ................ 5,180 56,015
Rofin-Sinar Technologies, Inc.* ..... 18,000 319,500
</TABLE>
64
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
SMC Corp. ............................ 21,200 $ 1,613,476
Sodick Co.* .......................... 110,000 317,415
Thai Engine Manufacturing
Public Co. Ltd.* ................... 100,000 34,953
Vestas Wind Systems A/S* ............. 6,450 254,865
United Technologies Corp. ............ 145,700 13,477,250
--------------
29,497,773
--------------
TOTAL CAPITAL GOODS (3.8%) ......... 71,986,995
--------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
British Airways PLC .................. 45,000 487,350
Cathay Pacific Airways ............... 41,000 28,840
Japan Air Lines Co.* ................. 24,000 66,830
Lufthansa AG ......................... 20,000 502,356
Quantas Airways Ltd. ................. 40,000 60,264
Virgin Express Holdings PLC
(ADR)* ............................. 20,000 258,750
--------------
1,404,390
--------------
APPAREL, TEXTILE (0.4%)
Carli Gry International A/S .......... 20,000 1,615,485
King Co. ............................. 47,000 66,116
PT Great River International ......... 1,709,000 43,449
Teijin Ltd. .......................... 18,000 54,538
Tommy Hilfiger Corp.* ................ 86,000 5,375,000
--------------
7,154,588
--------------
AUTO RELATED (0.4%)
Asahi Glass Co. Ltd. ................. 5,000 27,052
Bridgestone Corp. .................... 22,000 520,560
Dana Corp. ........................... 100,000 5,350,000
Denso Corp. .......................... 30,000 497,764
Michelin (CGDE), (Class B) ........... 8,000 461,678
Minebea Co. Ltd. ..................... 88,000 876,699
Toyoda Gosei ......................... 32,000 93,493
--------------
7,827,246
--------------
AUTOS & TRUCKS (0.7%)
Daimler-Benz AG ...................... 23,950 2,350,513
Fiat Spa ............................. 74,250 325,106
Harley-Davidson, Inc. ................ 242,200 9,385,250
Honda Motor Co. Ltd. ................. 16,000 570,192
Perusahaan Otomobil Nasional ......... 9,000 5,747
Peugeot SA ........................... 700 150,475
--------------
12,787,283
--------------
FOOD SERVICES, LODGING (0.3%)
Accor SA ............................. 7,000 1,958,495
Choice Hotels Scandinavia ASA* 40,000 120,026
Compass Group PLC .................... 325,200 3,741,864
Fujita Kanko, Inc. ................... 3,000 24,455
QPQ Corp.--Warrants (expire
09/22/98)* ......................... 16,400 64
Restaurant Brands New Zealand
Ltd.+ .............................. 300,000 144,955
Sanyo Pax Co. Ltd. ................... 33,000 188,068
Thistle Hotels PLC+ .................. 130,000 475,451
--------------
6,653,378
--------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD FURNITURE,
APPLIANCES (0.4%)
Elamex S.A. de C.V.* ................. 70,000 $ 415,625
Electrolux B ......................... 5,500 94,459
Industrie Natuzzi Spa (ADR) .......... 30,000 780,000
Philips Electronics N.V. ............. 2,680 225,387
Sony Corp. ........................... 12,000 1,034,483
Steelcase, Inc. (Class A) ............ 170,900 4,443,400
Toto Ltd. ............................ 5,000 30,407
--------------
7,023,761
--------------
LEISURE RELATED (2.2%)
Canal Plus ........................... 6,280 1,173,444
Carnival Corp. (Class A) ............. 236,000 9,351,500
Cendant Corp.* ....................... 151,000 3,152,125
Cinar Films, Inc. (Class B)* ......... 28,000 546,000
Cyrk, Inc.* .......................... 310,600 3,416,600
Disney (Walt) Co. .................... 54,400 5,715,400
EMI Group PLC ........................ 30,000 262,525
Granada Group PLC .................... 25,587 470,890
Hoyts Cinemas Group+ ................. 500,000 651,001
Imagineer Co. Ltd. ................... 11,400 57,567
KTM Motorradholding AG ............... 10,000 779,804
Mirage Resorts, Inc.* ................ 306,400 6,530,150
Nelvana Ltd.* ........................ 18,000 390,812
Nintendo Co. Ltd. .................... 8,400 778,676
Nippon Broadcasting System ........... 24,000 1,012,841
Resorts World BHD .................... 24,000 26,369
Royal Caribbean Cruises Ltd. ......... 82,400 6,550,800
Sega Enterprises Ltd. ................ 2,000 34,555
SHIMANO, INC. ........................ 12,000 304,718
Swatch Group AG ...................... 100 77,324
Tag Heuer International SA
(ADR) .............................. 50,200 470,625
Thomson Travel Group PLC* ............ 190,000 593,353
Toei Co. Ltd. ........................ 32,000 100,880
Toho Co. ............................. 400 42,130
Tokyo Dome Corp. ..................... 3,000 16,231
Tourism Holdings Ltd.* ............... 70,000 40,005
--------------
42,546,325
--------------
PHOTO & OPTICAL (0.2%)
Fuji Photo Film Co. .................. 36,000 1,254,364
Gretag Imaging Group* ................ 21,000 2,015,900
Noritsu Koki Co. Ltd. ................ 40,400 903,477
--------------
4,173,741
--------------
RETAIL--GENERAL (4.7%)
Abercrombie & Fitch Co.
(Class A)* ......................... 100,802 4,435,266
Aldeasa SA ........................... 36,600 1,307,910
BAA PLC .............................. 40,000 432,198
Boots Co. PLC ........................ 35,540 589,366
Daiei, Inc. .......................... 14,000 32,824
Dayton Hudson Corp. .................. 277,600 13,463,600
Dixons Group PLC ..................... 160,000 1,277,221
Doshisha Co. ......................... 7,000 29,743
Eiden Sakakiya Co. Ltd. .............. 21,000 81,049
Genesis Direct, Inc.* ................ 192,300 2,139,337
Great Universal Stores PLC ........... 39,213 517,339
Harvey Nichols PLC ................... 30,600 119,068
</TABLE>
65
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Hennes & Mauritz AB
(B Shares) ....................... 2,500 $ 159,521
Homac Corp. ........................ 3,100 26,836
Home Depot, Inc. ................... 82,000 6,811,125
Home Wide Corp. .................... 16,000 58,866
Isetan Co. ......................... 13,000 108,787
Japan Airport Terminal Co. Ltd. 66,000 366,614
K-Mart Corp.* ...................... 406,000 7,815,500
Karstadt AG ........................ 150 72,526
Kohl's Corp.* ...................... 184,500 9,570,937
Kokuyo Co. Ltd. .................... 11,000 186,481
Koninklijke Ahold N.V. ............. 5,367 172,363
Limited, Inc. ...................... 335,625 11,117,578
Marks & Spencer PLC ................ 90,055 820,391
Marui Co. Ltd. ..................... 7,000 104,530
Metro AG ........................... 2,280 138,431
Metro AG--Rights* .................. 2,280 0
Paris Miki, Inc. ................... 41,900 550,425
Pinault Printemps .................. 600 502,026
Proffitt's, Inc.* .................. 167,400 6,758,775
Sato Corp. ......................... 52,600 859,465
Smith (W.H.) Group PLC ............. 63,000 559,719
Smith (W.H.) Group PLC
(B Shares)* ...................... 70,000 62,542
Sriwani Holdings BHD ............... 240,000 52,623
Staples, Inc.* ..................... 331,700 9,598,569
S.T. Dupont*+ ...................... 29,100 318,548
Swank International
Manufacturing Co.* ............... 300,000 32,525
Takihyo Co. Ltd. ................... 13,000 58,145
Tandy Corp. ........................ 142,000 7,534,875
Warehouse Group Ltd. ............... 140,000 247,306
--------------
89,090,950
--------------
TOTAL CONSUMER CYCLICALS (9.4%) 178,661,662
--------------
CONSUMER NONCYCLICALS
BEVERAGES (1.2%)
Asahi Breweries Ltd. ............... 8,000 100,995
Cadbury Schweppes PLC .............. 18,792 291,075
Carlsberg `A' ...................... 900 65,493
Coca-Cola Amatil Ltd. .............. 2,000 13,392
Coca-Cola Co. ...................... 185,200 15,834,600
Coca-Cola Enterprises, Inc. ........ 72,500 2,845,625
Diageo PLC ......................... 164,160 1,946,453
Kirin Brewery Co. .................. 8,000 75,602
Louis Dreyfus Citrus ............... 38,000 1,269,285
Panamerican Beverages, Inc. ........ 18,000 565,875
Quilmes Industrial Quins (ADR) 18,000 175,500
--------------
23,183,895
--------------
CONTAINERS (0.2%)
Owens-Illinois, Inc.* .............. 67,000 2,998,250
Sealed Air Corp.* .................. 25,500 937,125
Toyo Seikan Kaisha ................. 3,000 36,791
--------------
3,972,166
--------------
DRUGS (4.0%)
Astra AB (A Shares) ................ 25,000 510,844
Bristol-Myers Squibb Co. ........... 92,900 10,677,694
Centocor, Inc.* .................... 247,000 8,953,750
Daiichi Pharmaceutical Co. ......... 5,000 66,008
Eisai Co. Ltd. ..................... 5,000 68,172
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Glaxo Wellcome PLC ................. 66,706 $ 2,004,076
Merck & Co., Inc. .................. 89,700 11,997,375
Novartis AG ........................ 500 832,619
Novo-Nordisk A/S (B Shares) ........ 5,000 689,856
Orion-Yhtyma Oyj (B Shares)* ....... 71,000 2,188,580
Pfizer, Inc. ....................... 166,000 18,042,125
Roche Holding AG
Genusssheine ..................... 150 1,474,071
Sankyo Co. Ltd. .................... 121,000 2,758,332
Sanofi SA .......................... 9,800 1,152,179
Santen Pharmaceutical Co. Ltd. ..... 110,000 1,205,382
Schering AG ........................ 1,250 147,422
Schering Plough Corp. .............. 104,300 9,556,487
Smithkline Beecham PLC ............. 100,000 1,221,610
Taisho Pharmaceutical Co. .......... 4,000 74,737
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 74,000 1,542,779
Zeneca Group PLC ................... 30,000 1,288,577
--------------
76,452,675
--------------
FOODS (1.7%)
Ajinomoto Co., Inc. ................ 9,000 78,885
Barry Callebaut AG* ................ 8,500 1,833,806
Campbell Soup Co. .................. 151,000 8,021,875
Fyffes PLC ......................... 1,000,000 2,429,557
Groupe Danone ...................... 2,100 578,867
Karlshamns AB+ ..................... 53,800 728,394
Koninklijke Numico N.V. ............ 19,000 595,239
Nestle SA .......................... 930 1,991,674
Nippon Meat Packers, Inc. .......... 4,000 49,026
Nissin Food Products Co. ........... 3,000 53,780
Nutreco Holding N.V. ............... 28,600 1,001,485
Oie Sangyo Co. Ltd. ................ 6,000 21,685
Rite Aid Corp. ..................... 245,000 9,202,813
Shriram Industrial Enterprises
Ltd. (GDR)+ ...................... 28,800 43,200
Tingyi Holdings Corp.* ............. 480,000 29,427
Tyson Foods, Inc. .................. 235,900 5,116,081
Yamakazi Baking Co. ................ 4,000 35,493
--------------
31,811,287
--------------
HOSPITAL SUPPLIES & SERVICES (1.9%)
Columbia/HCA Healthcare Corp. 584,000 17,009,000
Medtronic, Inc. .................... 202,900 12,934,875
NIC Corp. .......................... 4,000 26,547
United HealthCare Corp. ............ 94,800 6,019,800
--------------
35,990,222
--------------
RETAIL--FOOD (0.3%)
Familymart Co. ..................... 30,700 1,169,355
Food Lion, Inc. (Class A) .......... 300,000 3,187,500
Jusco Co. .......................... 9,000 165,236
McBride PLC ........................ 60,000 171,844
Santa Isabel S.A. (ADR) ............ 3,324 36,564
Seven-Eleven Japan Co. Ltd. ........ 18,900 1,126,201
Tesco PLC .......................... 71,199 695,581
--------------
6,552,281
--------------
SOAPS & TOILETRIES (1.8%)
Avon Products, Inc. ................ 146,800 11,377,000
BIC ................................ 1,200 85,325
Estee Lauder Companies
(Class A) ........................ 74,500 5,191,719
</TABLE>
66
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Gillette Co. ......................... 220,400 $ 12,493,925
Kao Corp. ............................ 70,000 1,080,652
L'Oreal .............................. 2,455 1,365,219
Unilever N.V. CVA .................... 15,160 1,203,376
Unilever PLC ......................... 102,420 1,091,248
--------------
33,888,464
--------------
TOBACCO (1.2%)
Imperial Tobacco Group PLC ........... 127,000 937,442
Japan Tobacco, Inc. .................. 90 609,652
Philip Morris Cos., Inc. ............. 458,500 18,053,438
RJ Reynolds BHD ...................... 80,000 110,837
Rothmans of Pall Mall BHD ............ 6,000 41,564
Swedish Match AB ..................... 332,307 1,103,941
Tabacalera SA-A ...................... 80,000 1,638,083
--------------
22,494,957
--------------
TOTAL CONSUMER NONCYCLICALS (12.3%) 234,345,947
--------------
CREDIT SENSITIVE
BANKS (3.7%)
ABN Amro Holding N.V. ................ 26,124 611,569
Ahmanson (H.F.) & Co. ................ 60,000 4,260,000
Akita Bank ........................... 27,000 118,814
Asahi Bank Ltd. ...................... 34,000 149,618
Banca Commerciale Italiana ........... 35,000 209,387
Banca Nazionale del Lavoro
(BNL)* ............................. 10,000 264,513
Banco Bilbao Vizcaya SA .............. 19,392 995,207
Banco Central
Hispanoamericano SA ................ 20,000 628,627
Banco Latinoamericano de
Exportaciones S.A. (E Shares) 15,000 461,250
Banco Santander SA ................... 26,442 676,784
BankAmerica Corp. .................... 48,500 4,192,219
Bank Austria AG ...................... 920 74,851
Bank of Scotland ..................... 80,000 896,460
Bank of Tokyo-Mitsubishi Ltd. ........ 88,000 932,564
Banque Nationale de Paris ............ 4,450 363,506
Barclays PLC ......................... 50,000 1,442,886
Chase Manhattan Corp. ................ 240,000 18,120,000
Corporacion Bancaria de
Espana SA .......................... 80,000 1,794,588
Credit Suisse Group .................. 6,700 1,491,885
Credito Italiano Spa ................. 70,000 366,576
Dai-Ichi Kangyo Bank Ltd. ............ 110,000 646,732
Deutsche Bank AG ..................... 13,300 1,127,200
Dresdner Bank AG ..................... 2,900 156,457
Forenings Sparbanken AB
(A Shares) ......................... 5,200 156,450
Fuji Bank Ltd. ....................... 63,000 281,323
Grupo Financiero Banorte
(Class B)* ......................... 22,500 24,326
Hang Seng Bank ....................... 58,000 327,878
HSBC Holdings PLC .................... 20,000 484,970
HSBC Holdings PLC (H.K.$) ............ 20,000 489,158
Istituto Mobiliare Italiano .......... 10,000 157,582
Lloyds TSB Group PLC ................. 167,866 2,350,629
Malayan Banking BHD .................. 58,000 58,416
Mediobanca Spa ....................... 10,000 126,910
Mitsubishi Trust & Banking
Corp. .............................. 28,000 238,147
National Australia Bank Ltd. ......... 55,400 731,614
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
National Westminster Bank PLC 10,000 $ 178,858
NationsBank Corp. .................... 136,800 10,465,200
Paribas* ............................. 2,750 294,212
Sakura Bank Ltd. ..................... 82,000 212,956
Shizuoka Bank Ltd. ................... 10,000 107,488
Skandinaviska Enskilda Banken
(Series A) ......................... 86,720 1,483,926
Societe Generale ..................... 5,000 1,039,272
State Street Corp. ................... 89,800 6,241,100
Sumitomo Bank Ltd. ................... 73,000 710,936
Svenska Handelbanken
(Series A) ......................... 3,100 143,788
Toho Bank ............................ 49,000 196,891
UBS AG--Registered* .................. 850 316,290
United Overseas Bank Ltd. ............ 10,000 31,074
Zions Bancorp. ....................... 71,000 3,771,875
--------------
70,602,962
--------------
FINANCIAL SERVICES (3.5%)
Abbey National PLC ................... 14,314 254,583
Aiful Corp. .......................... 29,500 1,440,737
Amvescap PLC ......................... 90,000 879,259
Associates First Capital Corp.
(Class A) .......................... 155,400 11,946,375
CMAC Investment Corp. ................ 100,000 6,150,000
CMIC Finance & Securities
Public Co. Ltd.* ................... 200,000 0
Credit Saison Co. .................... 133,600 2,650,411
Daiwa Securities Co. Ltd. ............ 19,000 81,828
Groupe Bruxelles Lambert SA .......... 450 90,798
Hong Leong Finance Ltd. .............. 40,000 32,672
JCG Holdings Ltd. .................... 60,000 16,649
MBNA Corp. ........................... 497,600 16,420,800
Merrill Lynch & Co., Inc. ............ 72,100 6,651,225
Morgan Stanley Dean Witter
& Co. .............................. 145,500 13,295,063
Newcourt Credit Group, Inc. .......... 97,200 4,781,025
Nichiei Co. Ltd. ..................... 19,800 1,348,377
Nomura Securities Co. ................ 61,000 710,684
Sanyo Shinpan Finance Co. Ltd. ....... 4,800 169,672
Schroders PLC ........................ 5,813 150,069
Takefuji Corp. ....................... 2,660 122,811
--------------
67,193,038
--------------
INSURANCE (5.4%)
Aegon N.V. ........................... 22,000 1,915,113
Allianz AG ........................... 9,000 2,969,226
ASR Verzekeringsgroep N.V. ........... 22,900 1,943,904
Assicurazioni Generali ............... 25,288 822,605
CNA Financial Corp.* ................. 84,900 3,953,156
Commercial Union PLC ................. 21,787 406,783
Corporacion Mapfre ................... 39,400 1,382,276
Fortis AG ............................ 740 188,877
Fortis Amev N.V. ..................... 17,000 995,770
GIO Australia Holdings Ltd. .......... 200,000 513,857
ING Groep N.V. ....................... 30,000 1,965,278
Istituto Naz Delle Assicurazioni ..... 60,000 170,526
Koa Fire & Marine Insurance
Co. Ltd. ........................... 10,000 38,523
Legal & General Group PLC ............ 23,090 246,594
Life Re Corp. ........................ 232,800 19,089,600
MGIC Investment Corp. ................ 55,300 3,155,556
</TABLE>
67
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Mitsui Marine & Fire
Insurance Co. ..................... 13,000 $ 65,366
Norwich Union PLC ................... 90,000 653,808
Pacific & Orient BHD ................ 150,000 69,755
PennCorp Financial Group, Inc. ...... 131,000 2,685,500
Providian Financial Corp. ........... 237,000 18,619,313
Prudential Corp. PLC ................ 62,486 823,859
Royal & Sun Alliance Insurance
Group PLC ......................... 49,613 513,281
Schweizerische
Rueckversicherungs-Gesellschaft 640 1,619,740
SunAmerica, Inc. .................... 124,600 7,156,712
Tokio Marine & Fire Insurance
Co. ............................... 34,000 349,762
Travelers Group, Inc. ............... 409,600 24,832,000
Willis Corroon Group PLC
(ADR) ............................. 387,000 4,861,688
------------
102,008,428
------------
REAL ESTATE (0.6%)
Asticus AB* ......................... 64,440 710,884
British Land Co. PLC ................ 8,416 86,507
Castellum AB ........................ 98,000 1,154,820
Cheung Kong Holdings ................ 93,000 457,318
City Developments Ltd. .............. 50,000 139,686
Daibiru Corp. ....................... 17,000 109,638
DBS Land ............................ 17,000 14,087
Diligentia AB ....................... 800 6,920
Glenborough Realty Trust, Inc. ...... 165,000 4,351,875
Land Securities PLC ................. 9,978 154,386
Lend Lease Corp. Ltd. ............... 4,100 82,996
Mandamus AB* ........................ 260 1,630
MEPC PLC ............................ 8,200 72,168
Mitsui Fudosan ...................... 20,000 158,130
Nackebro Fastighets AB .............. 310 5,169
New World Development Co. ........... 48,000 92,927
Singapore Land Ltd. ................. 80,000 167,623
Sino Land Co. ....................... 740,000 257,873
Spieker Properties, Inc. ............ 65,800 2,549,750
Sumitomo Realty &
Development Co. Ltd. .............. 137,000 604,848
Sun Hung Kai Properties ............. 48,000 203,820
Wharf Holdings ...................... 17,000 16,785
Wharf Holdings--Warrants
(expire 12/31/99)* ................ 850 0
------------
11,399,840
------------
UTILITY--ELECTRIC (1.0%)
AES Corp.* .......................... 116,800 6,139,300
British Energy PLC .................. 120,000 1,050,100
Cia Paranaense de Energia-Copel
(ADR) ............................. 124,000 1,147,000
CLP Holdings LTD .................... 36,000 164,017
Edison SPA .......................... 15,000 120,424
Electrabel SA ....................... 1,290 365,650
Electricidade de Portugal SA ........ 52,000 1,209,315
Endesa SA ........................... 34,256 749,455
Enersis S.A. (ADR) .................. 6,000 146,625
Gas Y Electridad SA (Series 2) ...... 5,000 380,502
Hidroelectrica del Cantabrico ....... 9,000 410,825
Iberdrola SA ........................ 90,000 1,461,363
Kansai Electric Power Co., Inc. ..... 22,400 389,439
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
National Grid Group PLC ............. 160,000 $ 1,079,492
National Power PLC .................. 130,000 1,224,449
Powergen PLC (ADR) .................. 1,250 70,469
RWE AG .............................. 8,600 510,230
Tenaga Nasional BHD ................. 85,000 102,404
Tohoku Electric Power Co., Inc. ..... 11,500 169,654
Tractebel Investment
International Capital ............. 1,100 161,069
Veba AG ............................. 14,000 954,810
Viag AG ............................. 2,000 1,352,925
------------
19,359,517
------------
UTILITY--GAS (0.0%)
Centrica PLC* ....................... 100,557 169,610
Thames Water ........................ 7,439 135,537
------------
305,147
------------
UTILITY--TELEPHONE (0.4%)
British Telecommunications PLC 181,984 2,248,967
Cable & Wireless PLC ................ 53,873 654,969
Empresas Telex-Chile S.A.
(ADR)* ............................ 14,100 20,269
Hellenic Telecommunication
Organization SA ................... 20,300 520,980
Portugal Telecom SA ................. 5,670 300,635
PT Indosat (ADR) .................... 9,100 101,237
Singapore Telecommunications
Ltd. .............................. 66,000 93,756
Telecom Italia Spa .................. 50,000 368,208
Telefonica de Espana ................ 32,829 1,517,819
Telefonica del Peru S.A. (ADR) ...... 32,000 654,000
Telekom Malaysia BHD ................ 56,000 94,452
Telephone & Data Systems, Inc. ...... 40,000 1,575,000
Videsh Sanchar Nigam Ltd.
(GDR)* ............................ 59,000 551,650
------------
8,701,942
------------
TOTAL CREDIT SENSITIVE (14.6%)..... 279,570,874
------------
ENERGY
COAL & GAS PIPELINES (0.1%)
BG PLC .............................. 125,808 727,997
OMV AG .............................. 6,000 803,907
------------
1,531,904
------------
OIL--DOMESTIC (1.0%)
Apache Corp. ........................ 139,000 4,378,500
Louis Dreyfus Natural Gas
Corp.* ............................ 214,700 4,065,881
Tom Brown, Inc.* .................... 50,000 940,625
USX-Marathon Group .................. 281,600 9,662,400
------------
19,047,406
------------
OIL--INTERNATIONAL (0.4%)
British Petroleum Co. PLC ........... 149,481 2,181,804
Cosmo Oil Co. Ltd. .................. 11,000 19,838
Gulf Indonesia Resources Ltd.* ...... 52,500 603,750
Mitsubishi Oil Co.* ................. 8,000 11,254
Nippon Oil Co. Ltd. ................. 22,000 71,101
Norsk Hydro ASA ..................... 2,100 92,466
Oil Search Ltd. ..................... 300,000 453,841
Petrofina SA ........................ 290 119,015
Repsol SA ........................... 12,748 702,449
Royal Dutch Petroleum Co. ........... 50,788 2,817,531
Total SA--B ......................... 900 116,974
------------
7,190,023
------------
</TABLE>
68
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
OIL--SUPPLIES & CONSTRUCTION (1.9%)
BJ Services Co.* ................... 112,000 $ 3,255,000
Bouygues Offshore SA (ADR) ......... 32,000 676,000
Canadian Fracmaster Ltd. ........... 117,800 744,480
Canadian Fracmaster Ltd.
Installment Receipt+ ............. 347,500 1,181
Coflexip (ADR) ..................... 11,000 672,375
Dresser Industries, Inc. ........... 366,200 16,135,688
Noble Drilling Corp.* .............. 429,100 10,325,219
Parker Drilling Co.* ............... 142,000 1,002,875
Stolt Comex Seaway, S.A.* .......... 157,100 3,043,812
Stolt Comex Seaway, S.A.
(ADR)* ........................... 78,550 1,354,987
------------
37,211,617
------------
RAILROADS (0.0%)
East Japan Railway Co. ............. 55 258,693
Tobu Railway Co. Ltd. .............. 14,000 37,065
Tokyu Corp. ........................ 17,000 51,631
------------
347,389
------------
TOTAL ENERGY (3.4%) .............. 65,328,339
------------
TECHNOLOGY
ELECTRONICS (3.3%)
Altera Corp.* ...................... 219,866 6,499,797
Austria Mikro Systeme
International AG+ ................ 1,430 96,869
Cisco Systems, Inc.* ............... 327,250 30,127,453
Electrocomponents PLC .............. 8,375 65,736
Enplas Corp. ....................... 2,000 35,204
Fujimi, Inc. ....................... 21,200 776,915
Hitachi Ltd. ....................... 30,000 195,859
Intel Corp. ........................ 66,200 4,907,075
Kyocera Corp. ...................... 1,000 48,911
Micronics Japan Co. Ltd. ........... 10,000 140,672
Murata Manufacturing Co., Ltd. ..... 8,000 259,703
Nikon Corp. ........................ 51,000 367,176
Rohm Co. Ltd. ...................... 10,000 1,027,990
Sankyo Engineering Co. ............. 4,000 15,553
Solectron Corp.* ................... 216,900 9,123,356
Sterling Commerce, Inc.* ........... 75,000 3,637,500
TDK Corp. .......................... 13,000 961,261
Texas Instruments, Inc. ............ 75,000 4,373,437
Tokyo Electron ..................... 3,800 116,506
Yokogawa Electric Corp. ............ 121,000 645,939
------------
63,422,912
------------
OFFICE EQUIPMENT (3.3%)
Bay Networks, Inc.* ................ 180,400 5,817,900
Canon, Inc. ........................ 5,000 113,620
Ceridian Corp.* .................... 381,400 22,407,250
Compaq Computer Corp. .............. 375,900 10,666,163
Dell Computer Corp.* ............... 170,000 15,778,125
Fujitsu Ltd. ....................... 28,000 294,907
Oce-Van De Grinten N.V. ............ 1,840 78,367
Policy Management Systems
Corp.* ........................... 182,600 7,167,050
Ricoh Elemex Corp. ................. 10,000 70,697
------------
62,394,079
------------
OFFICE EQUIPMENT SERVICES (1.2%)
Accugraph Corp. (Class A)* ......... 15,000 12,742
Computer Sciences Corp. ............ 85,000 5,440,000
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Data Communication System Co. 21,000 $ 378,733
First Data Corp. ................... 352,600 11,745,988
Fuji Soft ABC, Inc. ................ 24,400 830,818
INES Corp. ......................... 33,000 226,158
Mettler-Toledo International,
Inc.* ............................ 95,500 1,915,969
Misys PLC .......................... 30,000 1,705,912
Nippon System Development .......... 22,000 523,734
SAP AG ............................. 1,700 1,032,160
------------
23,812,214
------------
TELECOMMUNICATIONS (2.8%)
Clearnet Communications, Inc.
(Class A)* ....................... 195,000 2,145,000
Corecomm, Inc.* .................... 3,600 94,500
DDI Corp. .......................... 145 505,230
Energis PLC* ....................... 160,000 2,436,874
E.R.G. Limited* .................... 1,050,000 579,391
Ericsson LM (ADR) .................. 49,400 1,442,923
Filtronic Comtek PLC ............... 300,000 2,004,008
Global TeleSystems Group, Inc.* 12,000 585,000
Helsinki Telephone Corp. ........... 38,100 1,772,077
Hong Kong Telecommunications 88,800 166,758
Mannesmann AG ...................... 3,500 355,337
NetCom Systems AB
(B Shares)*+ ..................... 22,000 842,547
Nextel Communications, Inc.
(Class A)* ....................... 178,300 4,435,213
SK Telecom Co. Ltd. (ADR) .......... 110,001 611,878
Spectrum Network Systems
Ltd.*+ ........................... 300,000 148,800
Tadiran Telecommunications Ltd. 30,000 446,250
Tele-Communications TCI
Ventures Group (Class A)* ........ 450,000 9,028,125
Tellabs, Inc.* ..................... 228,600 16,373,475
Videsh Sanchar Nigam Ltd.
(GDR)*+ .......................... 1,000 10,350
Vodafone Group PLC ................. 200,000 2,540,080
WorldCom, Inc.* .................... 142,789 6,916,342
------------
53,440,158
------------
TOTAL TECHNOLOGY (10.6%) ......... 203,069,363
------------
DIVERSIFIED
MISCELLANEOUS (1.4%)
BTR PLC ............................ 73,125 207,603
Crean (James) PLC--Units ........... 40,000 87,129
Damskibs AS (Class B) .............. 25 214,670
GKN PLC* ........................... 10,650 135,793
Hutchison Whampoa .................. 123,000 649,290
Industrias CH S.A. (B Shares)* ..... 80,000 262,499
Lagardere S.C.A. ................... 2,100 87,403
Montedison Spa ..................... 74,000 91,831
Pilkington PLC ..................... 17,397 32,104
Ratin A/S-B ........................ 385 81,527
Sime Darby BHD ..................... 180,000 124,041
Smiths Industries .................. 5,559 77,054
Sophus Berendsen-B ................. 385 15,969
Suez Lyonnaise des Eaux ............ 1,000 164,531
Sumitomo Corp. ..................... 22,000 105,858
Swire Pacific Ltd. (Class A) ....... 50,000 188,758
Tomkins PLC ........................ 80,000 434,536
Tyco International Ltd. ............ 290,800 18,320,400
</TABLE>
69
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. Industries, Inc. ................... 127,550 $ 3,156,862
Vivendi ................................. 10,850 2,316,222
Williams Holdings PLC ................... 10,569 67,954
--------------
TOTAL DIVERSIFIED (1.4%) .............. 26,822,034
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (62.6%)
(Cost $954,846,070).................... 1,196,197,939
--------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
ProSieben Media AG* ..................... 19,000 988,190
--------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A ................... 15,800 1,003,300
--------------
TOTAL BUSINESS SERVICES (0.1%) 1,991,490
--------------
CAPITAL GOODS (0.1%)
AEROSPACE
Loral Space & Communications
6.0% Conv. ............................ 34,700 2,650,212
--------------
CONSUMER CYCLICALS
AIRLINES (0.1%)
Continental Airlines
Finance Trust
8.5% Conv. ............................ 19,500 2,478,938
--------------
LEISURE RELATED (0.1%)
Royal Caribbean Cruises Ltd.
7.25% Series A ........................ 16,200 2,041,200
Village Roadshow Ltd. ................... 10,000 14,880
--------------
2,056,080
--------------
TOTAL CONSUMER CYCLICALS (0.2%) 4,535,018
--------------
CONSUMER NONCYCLICALS (0.1%)
CONTAINERS
Owens-Illinois, Inc.
4.75% Conv. ........................... 18,300 953,887
--------------
CREDIT SENSITIVE
BANKS (0.0%)
Bank Austria AG ......................... 10,000 812,099
--------------
INSURANCE (0.1%)
Life Re Capital Trust II
6.0% Conv. ............................ 19,200 1,464,000
--------------
UTILITY--ELECTRIC (0.1%)
AES Trust I
5.375% Conv. Series A ................. 26,700 2,082,600
--------------
TOTAL CREDIT SENSITIVE (0.2%) ......... 4,358,699
--------------
TECHNOLOGY
ELECTRONICS (0.1%)
L&H Capital Trust I
4.75% Conv.+ .......................... 18,000 1,143,000
--------------
TELECOMMUNICATIONS (0.5%)
ICG Communications, Inc.
6.75% Conv. ........................... 11,600 965,700
Intermedia
Communications, Inc.:
7.0% Conv.+ ............................ 23,000 1,265,000
7.0% Conv. Series D .................... 17,700 973,500
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
IXC Communications, Inc.
6.75% Conv.+ .......................... 23,600 $ 1,132,800
Mobile Telecommunications
$2.25 Conv. ........................... 11,700 409,500
Nextel Strypes Trust
7.25% Conv. ........................... 54,200 1,205,950
Nokia Oyj (A Shares) .................... 38,184 2,810,233
WinStar Communications, Inc.
7.0% Conv.+ ........................... 29,500 1,596,688
--------------
10,359,371
--------------
TOTAL TECHNOLOGY (0.6%) ............... 11,502,371
--------------
TOTAL PREFERRED STOCKS (1.3%)
(Cost $19,960,038) .................... 25,991,677
--------------
PRINCIPAL
AMOUNT
--------------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.1%)
Clear Channel
Communications, Inc.
2.625% Conv., 04/01/03 ............ $ 605,000 645,837
P-Com, Inc.:
4.25% Conv., 11/01/02+ ............. 1,095,000 792,506
4.25% Conv., 11/01/02 .............. 330,000 238,838
--------------
1,677,181
--------------
PROFESSIONAL SERVICES (0.1%)
Career Horizons, Inc.
7.0% Conv., 11/01/02 .............. 450,000 1,241,438
Personnel Group of America:
5.75% Conv., 07/01/04+ ............. 295,000 375,756
5.75% Conv., 07/01/04 .............. 280,000 356,650
--------------
1,973,844
--------------
TOTAL BUSINESS SERVICES (0.2%)..... 3,651,025
--------------
CAPITAL GOODS
AEROSPACE (0.4%)
Coltec Industries, Inc.
7.5%, 04/15/08+ ................... 7,540,000 7,464,600
Orbital Sciences Corp.:
5.0% Conv., 10/01/02 ............... 55,000 82,500
5.0% Conv., 10/01/02+ .............. 545,000 817,500
--------------
TOTAL CAPITAL GOODS (0.4%) ........ 8,364,600
--------------
CONSUMER CYCLICALS
AUTO RELATED (0.4%)
Federal Mogul Corp.
7.75%, 07/01/06 ................... 6,775,000 6,808,875
--------------
RETAIL--GENERAL (0.1%)
Home Depot, Inc.
3.25% Conv. Sub. Note,
10/01/01 .......................... 780,000 1,431,300
Office Depot, Inc.
Zero Coupon, 11/01/08 ............. 725,000 557,344
--------------
1,988,644
--------------
TOTAL CONSUMER CYCLICALS (0.5%) 8,797,519
--------------
</TABLE>
70
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NONCYCLICALS
DRUGS (0.3%)
Centocor, Inc.
4.75% Conv., 02/15/05+ ............ $ 620,000 $ 609,925
MedImmune, Inc.:
7.0% Conv., 07/01/03 ............... 670,000 2,157,400
7.0% Conv. Sub. Note,
07/01/03+ ......................... 400,000 1,288,000
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00 .............. 590,000 766,263
4.25% Conv., 05/31/00+ ............. 460,000 597,425
------------
5,419,013
------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
Alternative Living Services Ltd.
5.25% Conv., 12/15/02 ............. 495,000 553,781
Beckman Coulter, Inc.
7.45%, 03/04/98+ .................. 3,850,000 3,921,995
FPA Medical Management, Inc.
6.5% Conv., 12/15/01 (a)+ ......... 925,000 111,000
RES-Care, Inc.
6.0% Conv., 12/01/04+ ............. 820,000 938,900
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 .............. 395,000 438,450
------------
5,964,126
------------
MEDIA & CABLE (0.7%)
Time Warner, Inc.
9.125%, 01/15/13 .................. 10,250,000 12,474,762
------------
TOTAL CONSUMER NONCYCLICALS (1.3%) 23,857,901
------------
CREDIT SENSITIVE
BANKS (0.8%)
Fuji Bank Ltd.
9.87%, 12/31/49+ .................. 7,000,000 6,151,250
Grupo Financiero Banorte
Zero Coupon, 12/05/02 ............. 20,800 2,313
St. George Bank Ltd.
7.15%, 10/15/05+ .................. 9,525,000 9,885,712
------------
16,039,275
------------
FINANCIAL SERVICES (0.7%)
Corp Andina de Fomento
7.25%, 03/01/07 ................... 11,300,000 11,338,533
RAC Financial Group, Inc.:
7.25% Conv., 08/15/03 .............. 205,000 484,953
7.25% Conv. Sub. Note,
08/15/03+ ......................... 505,000 1,194,641
------------
13,018,127
------------
MORTGAGE RELATED (6.5%)
Federal Home Loan
Mortgage Corp.:
7.0%, 09/01/11 ..................... 8,108,292 8,252,725
7.0%, 01/01/12 ..................... 3,860,351 3,929,116
Federal National Mortgage
Association:
6.5%, 01/01/11 ..................... 757,311 761,568
6.0%, 04/01/11 ..................... 10,465,454 10,347,666
6.5%, 09/01/11 ..................... 7,409,467 7,451,108
7.0%, 05/01/26 ..................... 8,817,488 8,941,418
7.0%, 08/01/26 ..................... 2,050,314 2,079,131
7.0%, 09/01/27 ..................... 3,333,450 3,380,301
7.0%, 01/01/28 ..................... 18,812,101 19,076,505
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Government National Mortgage
Association:
7.5%, 12/15/25 ..................... $ 1,846,687 $ 1,896,899
7.5%, 01/15/27 ..................... 1,865,446 1,916,167
7.5%, 04/15/27 ..................... 1,882,683 1,933,873
7.5%, 05/15/27 ..................... 1,828,447 1,878,162
7.5%, 06/15/27 ..................... 1,876,183 1,928,359
7.0%, 07/15/27 ..................... 3,859,581 3,919,906
7.5%, 09/15/27 ..................... 1,835,483 1,885,390
7.5%, 11/15/27 ..................... 1,870,471 1,921,329
7.0%, 02/15/28 ..................... 13,348,498 13,557,135
6.5%, 03/15/28 ..................... 17,778,543 17,734,097
7.0%, 05/15/28 ..................... 11,780,513 11,964,643
------------
124,755,498
------------
UTILITY--ELECTRIC (0.4%)
National Grid Group PLC
4.25% Conv., 02/17/08 ............. 41,000 78,142
Texas Utilities (Series C)
6.375%, 01/01/08 .................. 6,900,000 6,771,025
------------
6,849,167
------------
U.S. GOVERNMENT (10.3%)
U.S. Treasury:
6.375% Note, 05/15/99 .............. 15,925,000 16,034,484
6.0% Note, 08/15/00 ................ 34,200,000 34,520,625
6.25% Note, 04/30/01 ............... 26,500,000 26,988,607
6.5% Note, 08/31/01 ................ 27,775,000 28,521,453
6.5% Note, 05/31/02 ................ 26,250,000 27,119,531
6.875% Note, 05/15/06 .............. 4,100,000 4,440,813
6.125% Bond, 11/15/27 .............. 55,610,000 59,589,618
------------
197,215,131
------------
TOTAL CREDIT SENSITIVE (18.7%)..... 357,877,198
------------
ENERGY
GAS (0.2%)
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ ................. 3,500,000 3,494,439
------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Diamond Offshore Drilling, Inc.
3.75% Conv. Sub. Note,
02/15/07 .......................... 1,210,000 1,400,575
Nabors Industries, Inc.
5.0% Conv., 05/15/06 .............. 575,000 704,375
Seacor Holdings, Inc.:
5.375% Conv., 11/15/06 ............ 100,000 112,000
5.375% Conv., 11/15/06+ ............ 140,000 156,800
------------
2,373,750
------------
TOTAL ENERGY (0.3%) ............... 5,868,189
------------
TECHNOLOGY
ELECTRONICS (0.7%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ............. 1,485,000 1,362,488
HNC Software, Inc.
4.75% Conv., 03/01/03 ............. 780,000 887,250
Level One Communications, Inc.:
4.0% Conv., 09/01/04+ .............. 670,000 739,512
4.0% Conv., 09/01/04 ............... 400,000 441,500
Network Associates, Inc.
Zero Coupon, 02/13/18+ ............ 2,620,000 1,228,125
</TABLE>
71
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------
<S> <C> <C>
Photronics, Inc.
6.0% Conv., 06/01/04 ............ $ 1,485,000 $ 1,603,800
Sanmina Corp.
5.5% Conv., 08/15/02+ ........... 1,030,000 3,169,825
SCI Systems, Inc.
5.0% Conv., 05/01/06+ ........... 1,280,000 2,064,000
Solectron Corp.
6.0% Conv., 03/01/06+ ........... 1,180,000 1,595,950
Wind River Systems, Inc.
5.0% Conv., 08/01/02+ ........... 245,000 243,775
--------------
13,336,225
--------------
TELECOMMUNICATIONS (0.1%)
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 ............ 270,000 341,550
5.75% Conv. Sub. Note,
10/01/06+ ....................... 1,295,000 1,638,175
--------------
1,979,725
--------------
TOTAL TECHNOLOGY (0.8%) ......... 15,315,950
--------------
TOTAL LONG-TERM DEBT SECURITIES (22.2%)
(Amortized Cost $411,597,553)..... 423,732,382
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCES
BankBoston Corp.
5.47%, 07/01/98 ................. 6,500,000 6,500,000
First Union National Bank
5.52%, 07/30/98 ................. 10,000,000 9,955,694
Suntrust Banks, Inc.:
5.47%, 07/06/98 .................. 8,000,000 8,001,806
5.47%, 07/16/98 .................. 15,144,698 15,110,244
--------------
TOTAL BANKERS' ACCEPTANCES (2.1%) 39,567,744
--------------
COMMERCIAL PAPER
Clipper Receivables Corp.
5.61%, due 08/10/98 ............. 35,000,000 34,783,000
Dresdner Bank AG
6.0%, due 07/01/98 .............. 4,300,000 4,300,000
Mobil Credit Finance Corp.
6.15%, due 07/01/98 ............. 29,800,000 29,800,000
Old Line Funding Corp.
6.3%, due 07/01/98 .............. 15,000,000 15,000,000
Rose Funding Ltd.
5.62%, due 08/26/98 ............. 22,500,000 22,305,051
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------
<S> <C> <C>
Shefield Receivables Corp.
6.35%, due 07/01/98 ............. $14,000,000 $ 14,000,000
Variable Funding Capital Corp.
5.66%, due 07/27/98 ............. 23,425,000 23,329,583
----------------
TOTAL COMMERCIAL PAPER (7.5%) 143,517,634
----------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.:
5.85%, due 07/01/98 .............. 18,200,000 18,200,000
5.5%, due 07/23/98 ............... 5,000,000 4,983,255
Federal National Mortgage
Association:
5.6%, due 07/06/98 ............... 15,000,000 14,988,333
5.51%, due 07/21/98 .............. 10,000,000 9,969,388
5.48%, due 07/29/98 .............. 5,000,000 4,978,766
----------------
TOTAL U.S. GOVERNMENT AGENCIES (2.8%) 53,119,742
----------------
TOTAL SHORT-TERM DEBT SECURITIES (12.4%)
(Amortized Cost $236,205,120) 236,205,120
----------------
TOTAL INVESTMENTS (98.5%)
(Cost/Amortized Cost $1,622,608,781) 1,882,127,118
OTHER ASSETS
LESS LIABILITIES (1.5%) ......... 29,502,925
----------------
NET ASSETS (100.0%) ............... $1,911,630,043
================
</TABLE>
- --------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Investments
Canada ..................................................... 0.2%
France ..................................................... 1.0
Germany .................................................... 0.9
Japan ...................................................... 2.8
Latin America .............................................. 0.2
Netherlands ................................................ 1.0
New Zealand & Australia .................................... 0.9
Scandinavia ................................................ 1.1
Southeast Asia ............................................. 0.3
Spain ...................................................... 0.8
Switzerland ................................................ 0.7
United Kingdom ............................................. 3.1
United States** ............................................ 85.9
Other European Countries ................................... 1.1
-----
100.0%
=====
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 12.5%.
+ 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, 1998, these securities amounted to $61,530,065 or
3.2% of net assets.
(a) Subsequent to June 30, 1998, on July 15, 1998, this security
defaulted on its interest payment.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
72
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 (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 was
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, and to separate accounts of other
insurance companies unaffiliated with Equitable. Class IB shares are offered to
an insurance company separate account of Equitable.
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.
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.
73
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
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 may be valued on the basis of prices provided by
a pricing service when such prices are believed to reflect the fair market
value of such securities. The prices provided by a pricing service take into
account many factors, including institutional size, trading in similar groups
of securities and any developments related to specific securities; however,
when such prices are not available, such bonds are valued at a bid price
estimated by a broker.
74
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
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 ("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 securities loaned. All loans will be
collateralized in the form of cash or U.S. Government securities. Chase invests
the cash collateral in short-term investments and retains a portion of the
interest earned. Chase will indemnify the Portfolios from any loss resulting
from a borrower's failure to return a loaned security when due. The following
table shows the value of securities loaned and collateral received at June 30,
1998, and the security loan fees received, net of rebates paid, for the six
months ended June 30, 1998. Such net fees are included in interest income in
the accompanying Statements of Operations.
<TABLE>
<CAPTION>
VALUE OF VALUE OF
SECURITIES COLLATERAL SECURITY LOAN
PORTFOLIO LOANED RECEIVED* FEES RECEIVED
- --------- ------ --------- -------------
<S> <C> <C> <C>
Alliance Intermediate Government Securities ......... $ 41,205,054 $ 42,371,576 $ 32,971
Alliance Quality Bond ............................... 45,019,107 46,370,421 70,545
Alliance Growth and Income .......................... 50,522,110 52,777,716 74,444
Alliance Equity Index ............................... 167,230,007 174,024,853 69,307
Alliance Common Stock ............................... 1,002,263,880 1,011,064,330 583,963
Alliance Global ..................................... 144,191,508 148,690,231 276,310
Alliance International .............................. 13,980,096 14,808,756 53,153
Alliance Aggressive Stock ........................... 749,371,638 757,759,100 1,307,190
Alliance Conservative Investors ..................... 94,382,999 97,923,988 97,243
Alliance Balanced ................................... 521,588,307 538,557,867 561,192
Alliance Growth Investors ........................... 383,407,812 395,157,241 496,291
</TABLE>
- ----------
* Including U.S. Government securities valued at $28,973,156, $11,541,311,
$754,800, $15,330,600, $1,745,225, $323,000, $798,000, $23,284,316,
$85,833,902 and $43,789,734 for the Alliance Intermediate Government
Securities, Alliance Quality Bond, Alliance Equity Index, Alliance Common
Stock, Alliance Global, Alliance International, Alliance Aggressive
Stock, Alliance Conservative Investors, Alliance Balanced and Alliance
Growth Investors Portfolios, respectively.
75
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
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 realized 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 U.S. Treasury securities. During the
period the futures and forward contracts are open, changes in the market price
of the contract are recognized as unrealized gains or losses by
"marking-to-market" at the end of each trading day. Variation margin payments
on futures contracts are received or made, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and the Portfolio's basis in the
contract. Should interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the futures and forward contracts and may
incur a loss. The use of futures and forward contracts transactions involves
the risk of imperfect correlation in movements in the price of futures and
forward contracts, interest rates and the underlying hedged assets.
76
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
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 risk involved in writing an option on a security is
that, if the option is exercised, the underlying security is then purchased or
sold by the Portfolio at the contract price, which could be disadvantageous
related to the market price. The contract amounts of these 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, 1997, 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
INTERMEDIATE ALLIANCE ALLIANCE GROWTH ALLIANCE ALLIANCE
GOVERNMENT QUALITY HIGH AND EQUITY COMMON ALLIANCE
SECURITIES BOND YIELD INCOME INDEX STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Undistributed (overdistributed) net
investment income ..................... $ (4,160) $ 664,479 $ 28,777 $ 48,024 $ 260,751 $ (2,631,075) $ 15,935,865
Accumulated net realized gain (loss) ... 4,160 (664,479) (28,777) (48,024) (260,751) 2,631,075 (15,935,865)
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
ALLIANCE AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
INTERNATIONAL STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Paid-in capital .......................... $ -- $ -- $ (7,066) $ -- $ -- $ --
Undistributed (overdistributed) net
investment income ....................... 3,322,727 1,777,082 410 (146,376) 58,776 4,831,809
Accumulated net realized gain (loss) ..... (3,322,727) (1,777,082) 6,656 146,376 (58,776) (4,831,809)
</TABLE>
Net capital and net currency losses incurred after October 31 and within
the taxable year are deemed to arise on the first day of the Portfolio's next
taxable year. For the period from November 1, 1997 to December 31, 1997 certain
Portfolios incurred and elected to defer until January 1, 1998 for U.S. Federal
income tax purposes net capital and net currency losses of approximately:
<TABLE>
<CAPTION>
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- --------- ------ ------
<S> <C> <C>
Alliance Equity Index ................... $ -- $ 3,600
Alliance Common Stock ................... -- 33,030
Alliance Global ......................... -- 433,526
Alliance International .................. 4,160,819 670,264
Alliance Small Cap Growth ............... 1,448,447 --
Alliance Conservative Investors ......... -- 37,085
Alliance Balanced ....................... -- 61,818
Alliance Growth Investors ............... -- 81,786
</TABLE>
77
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
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.
Under the terms of an Investment Advisory Agreement, Alliance receives fees
from each Portfolio at the following rates:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS
---------------------------------------------------------------------
FIRST NEXT NEXT NEXT
$750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
-------------- -------------- ------------ -------------- -----------
<S> <C> <C> <C> <C> <C>
PORTFOLIO
- ---------
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.
3. Distribution Plan
Each Portfolio's Distribution Plan permits the Portfolio to pay a
distribution fee of up to 0.50% of the average daily net assets attributable to
its Class IB shares. The Trust, on behalf of each Portfolio, has entered into
distribution agreements ("the Class IB Distribution Agreements") pursuant to
the Distribution Plans with each of Equitable Distributors, Inc. ("EDI") and EQ
Financial Consultants, Inc. ("EQ Financial") (each a "Class IB Distributor").
Both EDI and EQ Financial are indirect, wholly-owned subsidiaries of the
Equitable. The Class IB Distribution Agreements provide that each Class IB
Distributor receives payments from each Portfolio (except the Alliance Small
Cap Growth Portfolio) at a rate equal to 0.25% of the average daily net assets
of such Portfolio attributable to Class IB shares for which such Class IB
Distributor provides services and/or assumes expenses under the Distribution
Plan. With respect to the Alliance Small Cap Growth Portfolio, this amount
shall not exceed the lesser of (a) 0.25% of the average daily net assets of the
Portfolio attributable to Class IB shares for which each Class IB Distributor
provides services and/or assumes expenses under the Distribution Plan and (b)
an amount that, when added to certain other expenses of the Class IB shares,
would result in a ratio of expenses to average daily net assets attributable to
Class IB shares for which such Class IB Distributor provides services and/or
assumes expenses under the Distribution Plan equaling 1.20%.
The Distribution Plans provide that EDI and EQ Financial will use the
payments received under the Class IB Distribution Agreements for services
rendered (and expenses borne) in connection with activities primarily intended
to result in the sale of the Trust's Class IB shares. Since the Class IB
Distributors' compensation is not directly tied to their expenses, the amount
of compensation received under the Class IB Distribution Agreements during any
year may be more or less than actual expenses. For this reason, the
Distribution Plans are characterized by the staff of the Securities and
Exchange Commission as being of the "compensation" variety.
78
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
4. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the six months ended June 30, 1998 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 ..... $ -- $240,273,947 $ -- $212,054,353
Alliance Quality Bond ........................... 46,850,622 186,037,749 35,999,852 185,554,943
Alliance High Yield ............................. 784,224,330 -- 622,752,248 --
Alliance Growth and Income ...................... 474,637,774 -- 298,445,333 --
Alliance Equity Index ........................... 288,151,779 -- 20,869,311 --
Alliance Common Stock ........................... 3,224,654,751 -- 2,532,457,740 --
Alliance Global ................................. 301,685,855 -- 283,428,204 --
Alliance International .......................... 50,749,662 -- 51,059,481 --
Alliance Aggressive Stock ....................... 2,313,813,502 -- 2,365,321,131 --
Alliance Small Cap Growth ....................... 190,002,273 -- 88,679,096 --
Alliance Conservative Investors ................. 60,434,954 64,063,884 63,003,552 55,683,210
Alliance Balanced ............................... 419,337,376 247,552,119 488,114,493 262,437,179
Alliance Growth Investors ....................... 569,598,444 218,780,429 633,438,084 164,895,887
</TABLE>
- ----------
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, 1998 are
summarized as follows:
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK
PORTFOLIO
-----------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- --------------
<S> <C> <C>
Options outstanding--January 1, 1998 ........................ 365,250 $ 103,560,700
Options written ............................................. 1,138,900 302,907,624
Options terminated in closing purchase transactions ......... (316,330) (79,443,730)
Options expired ............................................. (472,370) (127,402,685)
Options exercised ........................................... (412,950) (119,084,250)
--------- --------------
Options outstanding--June 30, 1998 .......................... 302,500 $ 80,537,659
========= ==============
</TABLE>
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, 1998, 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:
79
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
<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
Japanese Yen, settling 07/21/98-08/10/98 ......... 12,230,000 $ 93,158,739 $ 88,720,595 $ (4,438,144)
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 07/21/98-10/29/98 ......... 16,230,000 122,831,344 118,101,438 4,729,906
------------
$ 291,762
============
</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
Japanese Yen, settling 07/21/98-08/10/98 ......... 3,440,000 $26,200,904 $24,955,759 $ (1,245,145)
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 07/21/98-10/29/98 ......... 4,730,000 35,722,970 34,431,081 1,291,889
------------
$ 46,744
============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ------------------------------------------ ------- ---- ----- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Finnish Markka, settling 07/02/98 ................ 21 $ 4,000 $ 3,878 $ (122)
Japanese Yen, settling 08/10/98 .................. 270,000 2,055,655 1,959,716 (95,939)
Portuguese Escudos, settling 07/02/98 ............ 2,150 12,034 11,644 (390)
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollars, settling 07/01/98 ............ 53 31,197 32,605 (1,408)
British Pounds, settling 07/01/98 ................ 7 11,077 11,166 (89)
French Franc, settling 07/31/98 .................. 28 4,629 4,720 (91)
Japanese Yen, settling 07/02/98-10/29/98 ......... 362,456 2,728,597 2,638,632 89,965
Swedish Krona, settling 07/02/98 ................. 64 7,757 7,999 (242)
---------
$ (8,316)
=========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE BALANCED PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ---------------------------- ------- ---- ----- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Deutsche Marks, settling 07/01/98-07/02/98 ......... 137 $ 76,830 $ 75,889 $ (941)
Finnish Markka, settling 07/02/98 .................. 170 32,002 31,027 (975)
Japanese Yen, settling 07/02/98-08/10/98 ........... 2,356,697 17,940,453 17,105,103 (835,350)
Portuguese Escudos, settling 07/02/98 .............. 21,500 116,437 116,443 6
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollars, settling 07/01/98 .............. 421 254,863 260,838 (5,975)
British Pounds, settling 07/01/98 .................. 74 122,538 122,833 (295)
French Franc, settling 07/31/98 .................... 215 35,009 35,699 (690)
Japanese Yen, settling 07/01/98-10/29/98 ........... 3,184,209 23,959,400 23,183,677 775,723
----------
$ (68,497)
==========
</TABLE>
80
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
<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, settling 07/01/98-07/02/98 ............ 99 $ 166,159 $ 165,971 $ (188)
Deutsche Marks, settling 07/02/98 ..................... 91 51,241 50,644 (597)
Japanese Yen, settling 07/21/98-08/10/98 .............. 5,610,000 42,743,780 40,697,783 (2,045,997)
Portuguese Escudos, settling 07/02/98 ................. 5,160 28,881 27,946 (935)
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, settling 07/06/98 ..................... 45 74,751 75,308 (557)
French Franc, settling 07/03/98 ....................... 463 75,621 76,564 (943)
Japanese Yen, settling 07/01/98-10/29/98 .............. 7,498,123 56,687,029 54,554,877 2,132,152
Malaysian Ringgit, settling 07/01/98-07/03/98 ......... 29 6,889 7,046 (157)
Norwegian Krone, settling 07/02/98 .................... 303 38,277 39,529 (1,252)
Swiss Franc, settling 07/12/98 ........................ 112 74,995 74,290 705
------------
$ 82,231
============
</TABLE>
As of June 30, 1998, 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 NET UNREALIZED
COST OF ----------------------------------- APPRECIATION
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
- --------- ----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Alliance Money Market ........................... $ 675,482,450 $ 166,050 $ (1,802) $ 164,248
Alliance Intermediate Government Securities ..... 152,597,186 1,408,590 (26,299) 1,382,291
Alliance Quality Bond ........................... 234,536,761 3,399,631 (1,837,288) 1,562,343
Alliance High Yield ............................. 600,788,681 10,950,872 (20,189,737) (9,238,865)
Alliance Growth and Income ...................... 738,960,321 119,061,824 (21,959,924) 97,101,900
Alliance Equity Index ........................... 993,357,535 407,728,504 (13,004,803) 394,723,701
Alliance Common Stock ........................... 8,315,561,268 3,864,476,342 (274,804,964) 3,589,671,378
Alliance Global ................................. 1,137,502,011 426,073,523 (144,847,520) 281,226,003
Alliance International .......................... 213,277,174 46,814,207 (40,842,121) 5,972,086
Alliance Aggressive Stock ....................... 4,424,363,874 852,695,940 (236,299,743) 616,396,197
Alliance Small Cap Growth ....................... 278,634,955 26,820,991 (19,973,521) 6,847,470
Alliance Conservative Investors ................. 317,591,028 32,072,756 (4,401,965) 27,670,791
Alliance Balanced ............................... 1,619,084,409 292,881,347 (39,841,293) 253,040,054
Alliance Growth Investors ....................... 1,626,166,835 338,016,581 (82,056,298) 255,960,283
</TABLE>
During the year ended December 31, 1997, the Alliance Intermediate
Government Securities and Alliance Quality Bond Portfolios utilized available
capital loss carryforwards of $999,418 and $4,993,810, respectively.
The Alliance Intermediate Government Securities Portfolio had net capital
loss carryforwards of $8,831,948 (of which $8,349,809 expires in the year 2002
and $482,139 expires in the year 2004). 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.
81
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
5. Capital Share Transactions
At June 30, 1998, 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, 1998 1997 JUNE 30, 1998 1997
--------------- ---------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ............. 59,133,390 88,164,162 3,726,944 4,317,481
Shares issued in
reinvestment of
dividends and
distributions .......... 1,098,741 2,138,588 344,987 605,567
---------- ---------- --------- ---------
Total shares issued ..... 60,232,131 90,302,750 4,071,931 4,923,048
Shares redeemed ......... (59,096,740) (91,686,416) (1,906,065) (2,249,794)
----------- ----------- ---------- ----------
Net increase
(decrease) ............. 1,135,391 (1,383,666) 2,165,866 2,673,254
=========== =========== ========== ==========
<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, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ............. 3,673,956 5,108,456 11,651,240 15,273,062
Shares issued in
reinvestment of
dividends and
distributions .......... 615,566 1,161,537 1,817,307 3,903,981
--------- --------- ---------- ----------
Total shares issued ..... 4,289,522 6,269,993 13,468,547 19,177,043
Shares redeemed ......... (560,741) (1,749,691) (4,584,632) (4,915,625)
--------- ---------- ---------- ----------
Net increase
(decrease) ............. 3,728,781 4,520,302 8,883,915 14,261,418
========= ========== ========== ==========
</TABLE>
<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, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold .......... 9,627,187 17,042,406 13,491,843 25,418,356
Shares issued in
reinvestment of
dividends and
distributions ....... 36,643 2,393,845 335,541 723,055
--------- ---------- ---------- ----------
Total shares issued... 9,663,830 19,436,251 13,827,384 26,141,411
Shares redeemed ...... (1,102,131) (1,171,007) (997,902) (3,834,705)
---------- ---------- ---------- ----------
Net increase ......... 8,561,699 18,265,244 12,829,482 22,306,706
========== ========== ========== ==========
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
-------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- ---------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold .......... 23,721,723 50,744,225 4,129,115 13,465,598
Shares issued in
reinvestment of
dividends and
distributions ....... 1,980,672 35,866,900 336,101 5,883,409
---------- ---------- --------- ----------
Total shares issued... 25,702,395 86,611,125 4,465,216 19,349,007
Shares redeemed ...... (13,929,238) (18,396,632) (3,825,536) (8,663,149)
----------- ----------- ---------- ----------
Net increase ......... 11,773,157 68,214,493 639,680 10,685,858
=========== =========== ========== ==========
</TABLE>
82
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
<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, 1998 1997 JUNE 30, 1998 1997
--------------- ---------------- --------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold .......... 26,575,247 17,702,398 17,176,957 34,847,127
Shares issued in
reinvestment of
dividends and
distributions ....... 127,334 1,469,420 62,433 11,233,155
---------- ---------- ---------- ----------
Total shares issued... 26,702,581 19,171,818 17,239,390 46,080,282
Shares redeemed ...... (26,248,625) (13,816,916) (20,180,430) (27,155,091)
----------- ----------- ----------- -----------
Net increase
(decrease) .......... 453,956 5,354,902 (2,941,040) 18,925,191
=========== =========== =========== ===========
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
------------------------------ -------------------------------
MAY 1, 1997*
SIX MONTHS TO SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold .......... 24,307,282 12,473,113 1,702,646 2,875,061
Shares issued in
reinvestment of
dividends and
distributions ....... 1,203 185,690 494,328 1,809,193
---------- ---------- --------- ---------
Total shares issued... 24,308,485 12,658,803 2,196,974 4,684,254
Shares redeemed ...... (18,031,728) (4,992,168) (1,760,348) (3,816,982)
----------- ---------- ---------- ----------
Net increase
(decrease) .......... 6,276,757 7,666,635 436,626 867,272
=========== ========== ========== ==========
</TABLE>
<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, 1998 1997 JUNE 30, 1998 1997
--------------- ---------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ..................... 2,229,381 3,662,533 3,558,572 9,706,135
Shares issued in
reinvestment of
dividends and
distributions .................. 1,421,344 8,034,691 888,212 6,731,864
--------- --------- --------- ---------
Total shares issued ............. 3,650,725 11,697,224 4,446,784 16,437,999
Shares redeemed ................. (3,686,189) (12,097,554) (2,092,862) (4,231,449)
---------- ----------- ---------- ----------
Net increase (decrease) ......... (35,464) (400,330) 2,353,922 12,206,550
========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
MAY 1, 1997*
SIX MONTHS YEAR ENDED SIX MONTHS TO
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold ............. 13,553,393 15,458,380 842,395 536,124
Shares issued in
reinvestment of
dividends and
distributions .......... 405,351 276,519 25,851 9,576
---------- ---------- ------- -------
Total shares issued ..... 13,958,744 15,734,899 868,246 545,700
Shares redeemed ......... (5,281,933) (3,884,676) (54,336) (10,301)
---------- ---------- ------- -------
Net increase ............ 8,676,811 11,850,223 813,910 535,399
========== ========== ======= =======
<CAPTION>
ALLIANCE ALLIANCE
HIGH YIELD GROWTH AND INCOME
PORTFOLIO PORTFOLIO
------------------------------ -----------------------------
MAY 1, 1997*
SIX MONTHS YEAR ENDED SIX MONTHS TO
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------------------------
Shares sold ............. 8,199,105 5,872,392 2,235,097 2,001,059
Shares issued in
reinvestment of
dividends and
distributions .......... 532,368 496,765 919 127,333
--------- --------- --------- ---------
Total shares issued ..... 8,731,473 6,369,157 2,236,016 2,128,392
Shares redeemed ......... (97,459) (51,149) (159,956) (266)
--------- --------- --------- ---------
Net increase ............ 8,634,014 6,318,008 2,076,060 2,128,126
========= ========= ========= =========
</TABLE>
- ----------
* Commencement of operations.
83
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
June 30, 1998
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
MAY 1, 1997*
SIX MONTHS TO SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold .............. 4,508 7,451 9,160,878 9,736,070
Shares issued in
reinvestment of
dividends and
distributions ........... 38 55 52,727 826,867
----- ----- --------- ---------
Total shares issued . 4,546 7,506 9,213,605 10,562,937
Shares redeemed .......... (301) (1,926) (83,863) (29,575)
----- ------ --------- ----------
Net increase ............. 4,245 5,580 9,129,742 10,533,362
===== ====== ========= ==========
<CAPTION>
ALLIANCE ALLIANCE
GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO
------------------------------ -----------------------------
MAY 1, 1997*
SIX MONTHS YEAR ENDED SIX MONTHS TO
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold .............. 554,011 1,232,644 235,701 317,031
Shares issued in
reinvestment of
dividends and
distributions ........... 5,251 99,584 2,454 22,868
------- --------- ------- -------
Total shares issued . 559,262 1,332,228 238,155 339,899
Shares redeemed .......... (61,094) (103,224) (71,822) (19,496)
------- --------- ------- -------
Net increase ............. 498,168 1,229,004 166,333 320,403
======= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
AGGRESSIVE STOCK SMALL CAP GROWTH
PORTFOLIO PORTFOLIO
------------------------------ ------------------------------
MAY 1, 1997*
SIX MONTHS YEAR ENDED SIX MONTHS TO
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold .......... 1,241,664 1,856,882 3,078,565 3,666,066
Shares issued in
reinvestment of
dividends and
distributions ....... -- 175,796 -- 91,565
--------- --------- --------- ---------
Total shares issued... 1,241,664 2,032,678 3,078,565 3,757,631
Shares redeemed ...... (48,953) (15,597) (64,472) (5,055)
--------- --------- --------- ---------
Net increase ......... 1,192,711 2,017,081 3,014,093 3,752,576
========= ========= ========= =========
<CAPTION>
ALLIANCE ALLIANCE
CONSERVATIVE INVESTORS GROWTH INVESTORS
PORTFOLIO PORTFOLIO
------------------------------ -----------------------------
MAY 1, 1997*
SIX MONTHS TO SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1998 1997 JUNE 30, 1998 1997
--------------- -------------- --------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold .......... 764,628 467,751 1,147,106 1,855,983
Shares issued in
reinvestment of
dividends and
distributions ....... 17,456 20,199 22,801 130,747
------- ------- --------- ---------
Total shares issued... 782,084 487,950 1,169,907 1,986,730
Shares redeemed ...... (31,136) (8,774) (145,441) (85,261)
------- ------- --------- ---------
Net increase ......... 750,948 479,176 1,024,466 1,901,469
======= ======= ========= =========
</TABLE>
- ----------
* Commencement of operations.
84
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
June 30, 1998
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 ended June 30, 1998 are summarized as follows:
<TABLE>
<CAPTION>
MARKET VALUE MARKET VALUE REALIZED
DECEMBER 31, PURCHASES SALES JUNE 30, DIVIDEND GAIN
1997 AT COST AT COST 1998 INCOME (LOSS)
------------ --------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE COMMON STOCK PORTFOLIO:
- --------------------------------
Abercrombie & Fitch Co. (Class A) (a) ....... $ -- $14,953,292 $ -- $ 21,494,960 $ -- $ --
CBL & Associates Properties, Inc. ........... 24,865,250 -- 1,852,500 22,120,850 871,596 467,746
Ceridian Corp. (a) .......................... 174,774,688 -- -- 224,131,250 -- --
Chris Craft Industries, Inc. (Class B) (a) .. 64,143,286 -- 21 69,066,949 -- 107
Regency Realty Corp. ........................ 3,563,381 -- 2,388,929 -- 56,628 829,055
Teleport Communications Group, Inc.
(Class A) .................................. 220,103,625 -- 83,021,500 92,170,750 -- 36,191,290
-------------- -------------- ---------- ------------
$ 487,450,230 $ 428,984,759 $ 928,224 $ 37,488,198
============== ============== ========== ============
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
- ------------------------------------
Abercrombie & Fitch Co. (Class A) (a) ....... $ -- $76,324,173 $ 200,596 $ 79,200,000 $ -- $ (3,143)
AK Steel Holding Corp. ...................... 7,421,675 -- 9,033,170 -- -- (1,901,088)
Capstar Hotel Co.(a) ........................ -- 81,149,255 -- 67,200,000 -- --
Centocor, Inc. .............................. 167,463,625 48,800,244 95,873,011 119,625,000 -- 27,437,394
Circuit City Stores, Inc.
CarMax Group(a) ............................ 56,346,300 787,822 947,745 64,181,250 -- (408,137)
Comverse Technology, Inc. ................... 72,520,500 -- 19,704,848 72,625,000 -- (96,614)
Continental Airlines, Inc. (Class B) (a) .... 213,588,375 -- 14,869,617 231,325,000 -- 20,150,706
Crompton & Knowles Corp. (a) ................ 137,800,000 -- 3,234,000 125,937,500 260,000 2,514,308
Dollar Thrifty Automotive Group, Inc.(a). ... -- 34,775,410 -- 19,875,000 -- --
Florida Panthers Holdings, Inc. (a) ......... 29,071,425 16,434,900 -- 49,218,750 -- --
MedImmune, Inc. ............................. 57,443,925 -- 767,822 81,087,500 -- 1,245,585
Millicom International Cellular SA .......... 89,487,300 4,830,519 1,151,761 105,000,000 -- 3,053,727
Mohawk Industries, Inc.(a) .................. 69,103,125 16,101,676 497,452 117,243,750 -- 975,189
Polo Ralph Lauren Corp.(a) .................. -- 66,464,900 -- 64,400,000 -- --
Security Capital Group, Inc. (Class B) ...... 38,509,250 17,676,525 620,958 47,925,000 -- (127,232)
Suburban Lodges of America .................. 12,034,500 -- 17,254,100 -- -- (3,412,315)
Teekay Shipping Corp.(a) .................... -- 55,123,836 -- 53,558,563 -- --
Telephone & Data Systems, Inc. .............. 133,322,406 -- 39,868,179 72,233,438 546,854 6,243,799
Tiffany & Co. (a) ........................... 56,376,506 40,762,198 -- 120,000,000 352,160 --
Tommy Hilfiger Corp. ........................ 68,124,937 12,081,367 20,934,612 109,450,000 -- 4,531,018
Ultramar Diamond Shamrock Corp. ............. 34,750,125 17,549,721 51,505,007 -- 437,305 202,047
-------------- -------------- ---------- ------------
$1,243,363,974 $1,600,085,751 $1,596,319 $ 60,405,244
============== ============== ========== ============
</TABLE>
- ----------
(a) Holdings represented less than 5% of outstanding shares at June 30,
1998, although ownership was above 5% for a period of time during
the period.
85
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
June 30, 1998
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, ----------------------------------------------------------------
1998 1997 1996 1995 1994 1993*
---------------- ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (a) ............................ $ 10.18 $ 10.17 $ 10.16 $ 10.14 $ 10.12 $ 10.11
-------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................. 0.27 0.54 0.54 0.57 0.41 0.30
Net realized and unrealized
gain (loss) on investments............ -- -- (0.01) -- -- --
--------- -------- -------- -------- -------- --------
Total from investment
operations ........................... 0.27 0.54 0.53 0.57 0.41 0.30
--------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income .................... (0.25) (0.53) (0.52) (0.55) (0.39) (0.29)
Dividends in excess of net
investment income .................... -- -- -- -- -- --
Distributions from realized
gains ................................ -- (0.00) -- -- -- --
--------- -------- -------- -------- -------- --------
Total dividends and
distributions ........................ (0.25) (0.53) (0.52) (0.55) (0.39) (0.29)
--------- -------- -------- -------- -------- --------
Net asset value, end of period ......... $ 10.20 $ 10.18 $ 10.17 $ 10.16 $ 10.14 $ 10.12
========= ======== ======== ======== ======== ========
Total return (d) ....................... 2.62% 5.42% 5.33% 5.74% 4.02% 3.00%
========= ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) . $462,290 $449,960 $463,422 $386,691 $325,391 $248,460
Ratio of expenses to average
net assets ............................ 0.39%(b) 0.39% 0.43% 0.44% 0.42% 0.42%
Ratio of net investment income
to average net assets ................. 5.20%(b) 5.28% 5.17% 5.53% 4.01% 2.91%
<CAPTION>
CLASS IB
--------------------------------------------------
SIX MONTHS OCTOBER 2,
ENDED YEAR ENDED 1996 TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
------------------ -------------- ----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (a) ............................ $ 10.17 $ 10.16 $ 10.16
--------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................. 0.25 0.52 0.11
Net realized and unrealized
gain (loss) on investments............ -- -- 0.01
---------- -------- --------
Total from investment
operations ........................... 0.25 0.52 0.12
---------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income .................... (0.23) (0.51) (0.02)
Dividends in excess of net
investment income .................... -- -- (0.10)
Distributions from realized
gains ................................ -- (0.00) --
---------- -------- ---------
Total dividends and
distributions ........................ (0.23) (0.51) (0.12)
---------- -------- ---------
Net asset value, end of period ......... $ 10.19 $ 10.17 $ 10.16
========== ======== =========
Total return (d) ....................... 2.50% 5.16% 1.29%
========== ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) . $ 212,287 $123,675 $ 3,184
Ratio of expenses to average
net assets ............................ 0.64%(b) 0.63% 0.67%(b)
Ratio of net investment income
to average net assets ................. 4.95%(b) 5.02% 4.94%(b)
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(E):
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------
1998 1997 1996 1995 1994 1993*
---------------- ------------ ----------- ----------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a)..... $ 9.44 $ 9.29 $ 9.47 $ 8.87 $ 10.08 $ 10.53
--------- ------- ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.26 0.53 0.54 0.58 0.65 0.59
Net realized and unrealized gain
(loss) on investments ..................... 0.05 0.13 (0.19) 0.57 ( 1.08) 0.51
--------- ------- ------- ------ ------- -------
Total from investment operations ........... 0.31 0.66 0.35 1.15 ( 0.43) 1.10
--------- ------- ------- ------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.24) (0.51) (0.53) (0.55) (0.78) (0.68)
Distributions from realized gains .......... -- -- -- -- -- (0.87)
--------- -------- ------- ------- ------- --------
Total dividends and distributions .......... (0.24) (0.51) (0.53) (0.55) (0.78) (1.55)
--------- -------- ------- ------- ------- --------
Net asset value, end of period .............. $ 9.51 $ 9.44 $ 9.29 $ 9.47 $ 8.87 $ 10.08
========= ======== ======= ======= ======= ========
Total return (d) ............................ 3.32% 7.29% 3.78% 13.33% (4.37)% 10.58%
========= ======== ======= ======= ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $ 136,460 $115,114 $88,384 $71,780 $48,518 $158,511
Ratio of expenses to average net assets...... 0.55%(b) 0.55% 0.56% 0.57% 0.56% 0.53%
Ratio of net investment income to
average net assets ......................... 5.42%(b) 5.61% 5.73% 6.15% 6.75% 5.43%
Portfolio turnover rate ..................... 172% 285% 318% 255% 133% 254%
<CAPTION>
CLASS IB
---------------------------------
SIX MONTHS MAY 1, 1997
ENDED TO
JUNE 30, DECEMBER 31,
1998 1997
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a)..... $ 9.43 $ 9.27
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.24 0.32
Net realized and unrealized gain
(loss) on investments ..................... 0.06 0.22
--------- ---------
Total from investment operations ........... 0.30 0.54
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.23) (0.38)
Distributions from realized gains .......... -- --
--------- ---------
Total dividends and distributions .......... (0.23) (0.38)
--------- ---------
Net asset value, end of period .............. $ 9.50 $ 9.43
========= =========
Total return (d) ............................ 3.19% 5.83%
========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $ 12,815 $ 5,052
Ratio of expenses to average net assets...... 0.80%(b) 0.81%(b)
Ratio of net investment income to
average net assets ......................... 5.17%(b) 5.15%(b)
Portfolio turnover rate ..................... 172% 285%
</TABLE>
86
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS ---------------------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995 1994
---------------- ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) ........... $ 9.74 $ 9.49 $ 9.61 $ 8.72 $ 9.82
--------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................. 0.28 0.60 0.57 0.57 0.66
Net realized and unrealized gain (loss) on
investments and foreign currency transactions..... 0.11 0.24 (0.07) 0.88 (1.16)
--------- ------- -------- ------- -------
Total from investment operations .................. 0.39 0.84 0.50 1.45 (0.50)
--------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .............. (0.26) (0.59) (0.60) (0.56) (0.55)
Dividends in excess of net investment income ...... -- -- (0.02) -- --
Distributions in excess of realized gains ......... -- -- -- -- --
Tax return of capital distributions ............... -- -- -- -- (0.05)
--------- -------- -------- -------- -------
Total dividends and distributions ................. (0.26) (0.59) (0.62) (0.56) (0.60)
--------- -------- -------- -------- -------
Net asset value, end of period ..................... $ 9.87 $ 9.74 $ 9.49 $ 9.61 $ 8.72
========= ======== ======== ======== =======
Total return (d) ................................... 4.01% 9.14% 5.36% 17.02% (5.10)%
========= ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................. $ 242,677 $203,233 $155,023 $157,443 $127,575
Ratio of expenses to average net assets ............ 0.58%(b) 0.57% 0.59% 0.59% 0.59%
Ratio of net investment income to average net
assets ............................................ 5.69%(b) 6.19% 6.06% 6.13% 7.17%
Portfolio turnover rate ............................ 109% 374% 431% 411% 222%
<CAPTION>
CLASS IA
------------------
OCTOBER 1, 1993
TO
DECEMBER 31, 1993
------------------
<S> <C>
Net asset value, beginning of period (a) ........... $ 10.00
---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................. 0.11
Net realized and unrealized gain (loss) on
investments and foreign currency transactions..... (0.16)
---------
Total from investment operations .................. (0.05)
---------
LESS DISTRIBUTIONS:
Dividends from net investment income .............. (0.12)
Dividends in excess of net investment income ...... --
Distributions in excess of realized gains ......... (0.01)
Tax return of capital distributions ............... --
---------
Total dividends and distributions ................. (0.13)
---------
Net asset value, end of period ..................... $ 9.82
=========
Total return (d) ................................... (0.51)%
=========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................. $ 104,832
Ratio of expenses to average net assets ............ 0.69%(b)
Ratio of net investment income to average net
assets ............................................ 4.62%(b)
Portfolio turnover rate ............................ 77%
</TABLE>
ALLIANCE HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS --------------------------------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995 1994 1993*
------------------ ------------ ------------ ------------ ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (a) ............................ $ 10.41 $ 10.02 $ 9.64 $ 8.91 $ 10.08 $ 9.15
---------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.53 1.04 1.02 0.98 0.89 0.94
Net realized and unrealized gain
(loss) on investments ................ (0.02) 0.75 1.07 0.73 (1.17) 1.10
---------- ------- ------- ------- ------- -------
Total from investment operations ...... 0.51 1.79 2.09 1.71 (0.28) 2.04
---------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................... (0.48) (0.97) (0.98) (0.94) (0.88) (0.92)
Dividends in excess of net
investment income .................... -- -- (0.03) (0.04) (0.01) --
Distributions from realized gains ..... -- (0.43) (0.70) -- -- (0.19)
Distributions in excess of realized
gains ................................ -- -- -- -- -- --
---------- -------- -------- -------- ------- -------
Total dividends and distributions ..... (0.48) (1.40) (1.71) (0.98) (0.89) (1.11)
---------- -------- -------- -------- ------- -------
Net asset value, end of period ......... $ 10.44 $ 10.41 $ 10.02 $ 9.64 $ 8.91 $ 10.08
========== ======== ======== ======== ======= =======
Total return (d) ....................... 4.91% 18.48% 22.89% 19.92% (2.79)% 23.15%
========== ======== ======== ======== ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $ 449,308 $355,473 $199,360 $118,129 $73,895 $67,169
Ratio of expenses to average net
assets ................................ 0.63% (b) 0.62% 0.59% 0.60% 0.61% 0.63%
Ratio of net investment income to
average net assets .................... 9.97%(b) 9.82% 9.93% 10.34% 9.23% 9.52%
Portfolio turnover rate ................ 132% 390% 485% 350% 248% 280%
<CAPTION>
CLASS IB
----------------------------------------------------
SIX MONTHS OCTOBER 2,
ENDED YEAR ENDED 1996 TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
------------------ -------------- ------------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period (a) ............................ $ 10.39 $ 10.01 $ 10.25
---------- ------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.51 1.05 0.19
Net realized and unrealized gain
(loss) on investments ................ (0.01) 0.71 0.15
---------- ------- ----------
Total from investment operations ...... 0.50 1.76 0.34
---------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................... (0.47) (0.95) (0.03)
Dividends in excess of net
investment income .................... -- -- (0.25)
Distributions from realized gains ..... -- (0.43) (0.01)
Distributions in excess of realized
gains ................................ -- -- (0.29)
---------- ------- ----------
Total dividends and distributions ..... (0.47) (1.38) (0.58)
---------- ------- ----------
Net asset value, end of period ......... $ 10.42 $ 10.39 $ 10.01
========== ======= ==========
Total return (d) ....................... 4.78% 18.19% 3.32%
========== ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...... $ 156,508 $66,338 $ 685
Ratio of expenses to average net
assets ................................ 0.88%(b) 0.88% 0.82%(b)
Ratio of net investment income to
average net assets .................... 9.67%(b) 9.76% 8.71%(b)
Portfolio turnover rate ................ 132% 390% 485%
</TABLE>
87
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS --------------------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995 1994
---------------- ------------ ------------ ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 15.38 $ 13.01 $ 11.70 $ 9.70 $ 9.95
--------- -------- -------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .................... 0.02 0.15 0.24 0.33 0.31
Net realized and unrealized gain
(loss) on investments ................... 1.92 3.30 2.05 1.97 (0.36)
--------- -------- -------- ------- -------
Total from investment operations.......... 1.94 3.45 2.29 2.30 (0.05)
--------- -------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................. (0.02) (0.15) (0.23) (0.30) (0.20)
Dividends in excess of net
investment income ....................... -- -- -- -- --
Distributions from realized gains ........ -- (0.93) (0.75) -- --
Tax return of capital distributions....... -- -- -- -- --
--------- -------- -------- ------- -------
Total dividends and distributions ........ (0.02) (1.08) (0.98) (0.30) (0.20)
--------- -------- -------- ------- -------
Net asset value, end of period ............ $ 17.30 $ 15.38 $ 13.01 $ 11.70 $ 9.70
========= ======== ======== ======= =======
Total return (d) .......................... 12.65% 26.90% 20.09% 24.07% (0.58)%
========= ======== ======== ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $ 772,856 $555,059 $232,080 $98,053 $31,522
Ratio of expenses to average net
assets ................................... 0.58%(b) 0.58% 0.58% 0.60% 0.78%
Ratio of net investment income to
average net assets ....................... 0.21%(b) 0.99% 1.94% 3.11% 3.13%
Portfolio turnover rate ................... 43% 79% 88% 65% 52%
<CAPTION>
CLASS IA CLASS IB
---------------- -----------------------------------
OCTOBER 1, SIX MONTHS MAY 1,
1993 TO ENDED 1997 TO
DECEMBER 31, JUNE 30, DECEMBER 31,
1993 1998 1997
---------------- ------------------ ----------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (a) $ 10.00 $ 15.36 $ 13.42
--------- ---------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .................... 0.03 -- 0.05
Net realized and unrealized gain
(loss) on investments ................... (0.06) 1.93 2.91
--------- ---------- ---------
Total from investment operations.......... (0.03) 1.93 2.96
--------- ---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................. (0.02) (0.01) (0.09)
Dividends in excess of net
investment income ....................... (0.00) -- --
Distributions from realized gains ........ -- -- (0.93)
Tax return of capital distributions....... (0.00) -- --
--------- ---------- ---------
Total dividends and distributions ........ (0.02) (0.01) (1.02)
--------- ---------- ---------
Net asset value, end of period ............ $ 9.95 $ 17.28 $ 15.36
========= ========== =========
Total return (d) .......................... (0.25)% 12.51% 22.41%
========= ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $ 1,456 $ 72,649 $ 32,697
Ratio of expenses to average net
assets ................................... 2.70%(b) 0.83%(b) 0.83%(b)
Ratio of net investment income to
average net assets ....................... 1.12%(b) (0.03)%(b) 0.43%(b)
Portfolio turnover rate ................... 48% 43% 79%
</TABLE>
ALLIANCE EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS --------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995
----------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) .......... $ 19.74 $ 15.16 $ 13.13 $ 9.87
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.13 0.26 0.27 0.26
Net realized and unrealized gain (loss) on
investments and foreign currency transactions.... 3.31 4.64 2.65 3.32
-------- -------- -------- --------
Total from investment operations ................. 3.44 4.90 2.92 3.58
-------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............. (0.13) (0.25) (0.25) (0.22)
Distributions from realized gains ................ -- (0.07) (0.64) (0.09)
Distributions in excess of realized gains ........ -- -- -- (0.01)
-------- -------- -------- --------
Total dividends and distributions ................ (0.13) (0.32) (0.89) (0.32)
-------- -------- -------- --------
Net asset value, end of period .................... $ 23.05 $ 19.74 $ 15.16 $ 13.13
======== ======== ======== ========
Total return (d) .................................. 17.43% 32.58% 22.39% 36.48%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ................. $1,397,215 $943,631 $386,249 $165,785
Ratio of expenses to average net assets ........... 0.36%(b) 0.37% 0.39% 0.48%
Ratio of net investment income to average net
assets ........................................... 1.24%(b) 1.46% 1.91% 2.16%
Portfolio turnover rate ........................... 2% 3% 15% 9%
<CAPTION>
CLASS IA CLASS IB
-------------- -------------------------------
MARCH 1, SIX MONTHS MAY 1,
1994 TO ENDED 1997 TO
DECEMBER 31, JUNE 30, DECEMBER 31,
1994 1998 1997
-------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period (a) .......... $ 10.00 $ 19.73 $ 16.35
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.20 0.11 0.14
Net realized and unrealized gain (loss) on
investments and foreign currency transactions.... (0.09) 3.30 3.48
-------- -------- --------
Total from investment operations ................. 0.11 3.41 3.62
-------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............. (0.20) (0.10) (0.17)
Distributions from realized gains ................ (0.03) -- (0.07)
Distributions in excess of realized gains ........ (0.01) -- --
-------- -------- --------
Total dividends and distributions ................ (0.24) (0.10) (0.24)
-------- -------- --------
Net asset value, end of period .................... $ 9.87 $ 23.04 $ 19.73
======== ======== ========
Total return (d) .................................. 1.08% 17.28% 22.28%
======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ................. $ 36,748 $ 226 $ 110
Ratio of expenses to average net assets ........... 0.49%(b) 0.61%(b) 0.62%(b)
Ratio of net investment income to average net
assets ........................................... 2.42%(b) 1.00%(b) 1.10%(b)
Portfolio turnover rate ........................... 7% 2% 3%
</TABLE>
88
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS --------------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995
------------------ -------------- -------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 21.61 $ 18.23 $ 16.48 $ 13.36
--------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ...................... 0.12 0.14 0.15 0.20
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions ..................... 3.88 5.12 3.73 4.12
--------- ---------- ---------- ----------
Total from investment operations ........... 4.00 5.26 3.88 4.32
--------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.11) (0.11) (0.15) (0.20)
Dividends in excess of net
investment income ......................... -- -- -- (0.02)
Distributions from realized gains .......... -- (1.77) (1.76) (0.95)
Distributions in excess of realized
gains ..................................... -- -- (0.22) (0.03)
Tax return of capital distributions ........ -- -- -- --
--------- ---------- ---------- ----------
Total dividends and distributions .......... (0.11) (1.88) (2.13) (1.20)
--------- ---------- ---------- ----------
Net asset value, end of period .............. $ 25.50 $ 21.61 $ 18.23 $ 16.48
========= ========== ========== ==========
Total return (d) ............................ 18.53% 29.40% 24.28% 32.45%
========= ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $11,311,407 $9,331,994 $6,625,390 $4,879,677
Ratio of expenses to average net
assets ..................................... 0.38%(b) 0.39% 0.38% 0.38%
Ratio of net investment income to
average net assets ......................... 1.01%(b) 0.69% 0.85% 1.27%
Portfolio turnover rate ..................... 26% 52% 55% 61%
<CAPTION>
CLASS IA CLASS IB
------------------------------ ----------------------------------------------
SIX MONTHS OCTOBER 2,
YEAR ENDED DECEMBER 31, ENDED YEAR ENDED 1996 TO
------------------------------ JUNE 30, DECEMBER 31, DECEMBER 31,
1994 1993* 1998 1997 1996
--------------- -------------- --------------- -------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 14.65 $ 13.49 $ 21.58 $ 18.22 $ 17.90
--------- ---------- ------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ...................... 0.20 0.23 0.09 0.10 0.02
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions ..................... (0.51) 3.10 3.87 5.11 1.52
--------- ---------- ------- -------- --------
Total from investment operations ........... (0.31) 3.33 3.96 5.21 1.54
--------- ---------- ------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.19) (0.23) (0.08) (0.08) (0.00)
Dividends in excess of net
investment income ......................... (0.01) (0.00) -- -- (0.03)
Distributions from realized gains .......... (0.77) (1.94) -- (1.77) (0.16)
Distributions in excess of realized
gains ..................................... -- -- -- -- (1.03)
Tax return of capital distributions ........ (0.01) -- -- -- --
--------- ---------- ------- -------- --------
Total dividends and distributions .......... (0.98) (2.17) (0.08) (1.85) (1.22)
--------- ---------- ------- -------- --------
Net asset value, end of period .............. $ 13.36 $ 14.65 $ 25.46 $ 21.58 $ 18.22
========= ========== ======= ======== ========
Total return (d) ............................ (2.14)% 24.84% 18.38% 29.07% 8.49%
========= ========== ======= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $3,466,245 $3,125,128 $502,433 $228,780 $ 1,244
Ratio of expenses to average net
assets ..................................... 0.38% 0.38% 0.63%(b) 0.64% 0.63%(b)
Ratio of net investment income to
average net assets ......................... 1.40% 1.55% 0.76%(b) 0.46% 0.61%(b)
Portfolio turnover rate ..................... 52% 82% 26% 52% 55%
</TABLE>
ALLIANCE GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS ----------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995
----------------- -------------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 17.29 $ 16.92 $ 15.74 $ 13.87
-------- ---------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ...................... 0.10 0.17 0.21 0.26
Net realized and unrealized gain
on investments and foreign
currency transactions ..................... 2.66 1.75 2.05 2.32
-------- ---------- -------- --------
Total from investment operations ........... 2.76 1.92 2.26 2.58
-------- ---------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.10) (0.36) (0.21) (0.25)
Dividends in excess of net
investment income ......................... -- -- (0.08) --
Distributions from realized gains .......... -- (1.19) (0.79) (0.42)
Distributions in excess of realized
gains ..................................... -- -- -- (0.03)
Tax return of capital distributions ........ -- -- (0.00) (0.01)
-------- ---------- -------- --------
Total dividends and distributions .......... (0.10) (1.55) (1.08) (0.71)
-------- ---------- -------- --------
Net asset value, end of period .............. $ 19.95 $ 17.29 $ 16.92 $ 15.74
======== ========== ======== ========
Total return (d) ............................ 15.91% 11.66% 14.60% 18.81%
======== ========== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $1,401,576 $1,203,867 $997,041 $686,140
Ratio of expenses to average net
assets ..................................... 0.71%(b) 0.69% 0.60% 0.61%
Ratio of net investment income to
average net assets ......................... 1.07%(b) 0.97% 1.28% 1.76%
Portfolio turnover rate ..................... 22% 57% 59% 67%
<CAPTION>
CLASS IA CLASS IB
------------------------- ----------------------------------------------
SIX MONTHS OCTOBER 2,
YEAR ENDED DECEMBER 31, ENDED YEAR ENDED 1996 TO
------------------------- JUNE 30, DECEMBER 31, DECEMBER 31,
1994 1993* 1998 1997 1996
------------ ------------ --------------- -------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (a) $ 13.62 $ 11.41 $ 17.27 $ 16.91 $ 16.57
-------- -------- -------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ...................... 0.20 0.08 0.08 0.12 0.02
Net realized and unrealized gain
on investments and foreign
currency transactions ..................... 0.52 3.58 2.65 1.76 0.81
-------- -------- -------- ------- --------
Total from investment operations ........... 0.72 3.66 2.73 1.88 0.83
-------- -------- -------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income .................................... (0.17) (0.15) (0.07) (0.33) --
Dividends in excess of net
investment income ......................... -- -- -- -- (0.11)
Distributions from realized gains .......... (0.28) (1.30) -- (1.19) (0.10)
Distributions in excess of realized
gains ..................................... (0.00) (0.00) -- -- (0.28)
Tax return of capital distributions ........ (0.02) -- -- -- (0.00)
-------- -------- -------- ------- --------
Total dividends and distributions .......... (0.47) (1.45) (0.07) (1.52) (0.49)
-------- -------- -------- ------- --------
Net asset value, end of period .............. $ 13.87 $ 13.62 $ 19.93 $ 17.27 $ 16.91
======== ======== ======== ======= ========
Total return (d) ............................ 5.23% 32.09% 15.77% 11.38% 4.98%
======== ======== ======== ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........... $421,698 $141,257 $ 34,760 $21,520 $ 290
Ratio of expenses to average net
assets ..................................... 0.69% 0.84% 0.96%(b) 0.97% 0.86%(b)
Ratio of net investment income to
average net assets ......................... 1.41% 0.62% 0.84%(b) 0.67% 0.48%(b)
Portfolio turnover rate ..................... 71% 150% 22% 57% 59%
</TABLE>
89
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
------------------------------------------------------------
SIX MONTHS APRIL 3,
ENDED YEAR ENDED DECEMBER 31, 1995 TO
JUNE 30, -------------------------- DECEMBER 31,
1998 1997 1996 1995
---------------- ------------- ------------ ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) ........... $ 10.27 $ 11.50 $ 10.87 $ 10.00
--------- ------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................. 0.08 0.10 0.13 0.14
Net realized and unrealized gain (loss) on
investments and foreign currency transactions..... 1.20 (0.45) 0.94 0.98
--------- ------- -------- ---------
Total from investment operations .................. 1.28 (0.35) 1.07 1.12
--------- ------- -------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .............. (0.08) (0.32) (0.10) (0.07)
Dividends in excess of net investment income ...... -- -- (0.09) (0.13)
Distributions from realized gains ................. -- (0.56) (0.25) (0.05)
--------- ------- -------- ---------
Total dividends and distributions ................. (0.08) (0.88) (0.44) (0.25)
--------- ------- -------- ---------
Net asset value, end of period ..................... $ 11.47 $ 10.27 $ 11.50 $ 10.87
========= ======= ======== =========
Total return (d) ................................... 12.50% (2.98)% 9.82% 11.29%
========= ======= ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................. $ 218,271 $190,611 $151,907 $ 28,684
Ratio of expenses to average net assets ............ 1.08%(b) 1.08% 1.06% 1.03%(b)
Ratio of net investment income to average net
assets ............................................ 1.39%(b) 0.83% 1.10% 1.71%(b)
Portfolio turnover rate ............................ 26% 59% 48% 56%
<CAPTION>
CLASS IB
-----------------------------------
SIX MONTHS MAY 1,
ENDED 1997 TO
JUNE 30, DECEMBER 31,
1998 1997
------------------ ----------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) ........... $10.26 $ 11.39
------ ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................. 0.07 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency transactions..... 1.20 (0.31)
------ ---------
Total from investment operations .................. 1.27 (0.29)
------ ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .............. (0.06) (0.28)
Dividends in excess of net investment income ...... -- --
Distributions from realized gains ................. -- (0.56)
------ ---------
Total dividends and distributions ................. (0.06) (0.84)
------ ---------
Net asset value, end of period ..................... $11.47 $ 10.26
====== =========
Total return (d) ................................... 12.36% (2.54)%
====== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................. $5,582 $ 3,286
Ratio of expenses to average net assets ............ 1.32% (b) 1.38%(b)
Ratio of net investment income to average net
assets ............................................ 1.20% (b) 0.20%(b)
Portfolio turnover rate ............................ 26% 59%
</TABLE>
90
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ---------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993*
----------------- -------------- -------------- -------------- --------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period (a) ............... $ 36.22 $ 35.85 $ 35.68 $ 30.63 $ 31.89 $ 29.81
-------- ---------- ---------- ---------- --------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) ..................... 0.02 0.04 0.09 0.10 0.04 0.09
Net realized and
unrealized gain (loss)
on investments ............. 3.32 3.71 7.52 9.54 (1.26) 4.91
-------- ---------- ---------- ---------- --------- ----------
Total from investment
operations ................. 3.34 3.75 7.61 9.64 (1.22) 5.00
-------- ---------- ---------- ---------- --------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income .......... (0.02) (0.05) (0.09) (0.10) (0.04) (0.09)
Dividends in excess of
net investment
income ..................... -- -- (0.00) -- -- --
Distributions from
realized gains.............. -- (3.33) (7.33) (4.49) -- (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 .............. (0.02) (3.38) (7.44) (4.59) (0.04) (2.92)
-------- ---------- ---------- ---------- --------- ----------
Net asset value, end of
period ...................... $ 39.54 $ 36.22 $ 35.85 $ 35.68 $ 30.63 $ 31.89
======== ========== ========== ========== ========= ==========
Total return (d) ............. 9.23% 10.94% 22.20% 31.63% (3.81)% 16.77%
======== ========== ========== ========== ========= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ..................... $4,895,216 $4,589,771 $3,865,256 $2,700,515 $1,832,164 $1,557,332
Ratio of expenses to
average net assets .......... 0.56%(b) 0.54% 0.48% 0.49% 0.49% 0.49%
Ratio of net investment
income (loss) to average
net assets .................. 0.13%(b) 0.11% 0.24% 0.28% 0.12 % 0.28%
Portfolio turnover rate ...... 49% 123% 108% 127% 92% 89%
<CAPTION>
CLASS IB
---------------------------------------------------
SIX MONTHS OCTOBER 2,
ENDED YEAR ENDED 1996 TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
----------------- -------------- ------------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning
of period (a) ............... $ 36.13 $ 35.83 $ 37.28
---------- ------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) ..................... (0.02) (0.11) (0.01)
Net realized and
unrealized gain (loss)
on investments ............. 3.31 3.77 0.85
---------- ------- ----------
Total from investment
operations ................. 3.29 3.66 0.84
---------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net
investment income .......... -- (0.03) --
Dividends in excess of
net investment
income ..................... -- -- (0.02)
Distributions from
realized gains.............. -- (3.33) (0.23)
Distributions in excess
of realized gains .......... -- -- (2.04)
Tax return of capital
distributions .............. -- -- --
---------- ------- ----------
Total dividends and
distributions .............. -- (3.36) (2.29)
---------- ------- ----------
Net asset value, end of
period ...................... $ 39.42 $ 36.13 $ 35.83
========== ======= ==========
Total return (d) ............. 9.10% 10.66% 2.32%
========== ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ..................... $ 127,199 $73,486 $ 613
Ratio of expenses to
average net assets .......... 0.81% (b) 0.81% 0.73%(b)
Ratio of net investment
income (loss) to average
net assets .................. (0.12)%(b) (0.28)% (0.10)%(b)
Portfolio turnover rate ...... 49% 123% 108%
</TABLE>
91
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE SMALL CAP GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
------------------------------ ----------------------------
SIX MONTHS MAY 1, SIX MONTHS MAY 1,
ENDED 1997 TO ENDED 1997 TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
--------------- -------------- ---------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) ..................... $ 12.35 $ 10.00 $ 12.34 $ 10.00
------- -------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................................ -- 0.01 (0.01) (0.01)
Net realized and unrealized gain on investments ............. 1.02 2.65 1.01 2.65
------- -------- ---------- ----------
Total from investment operations ............................ 1.02 2.66 1.00 2.64
------- -------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ........................ (0.00) (0.01) -- (0.00)
Distributions from realized gains ........................... -- (0.30) -- (0.30)
------- -------- ---------- ----------
Total dividends and distributions ........................... (0.00) (0.31) -- (0.30)
------- -------- ---------- ----------
Net asset value, end of period ............................... $ 13.37 $ 12.35 $ 13.34 $ 12.34
======= ======== ========== ==========
Total return (d) ............................................. 8.21% 26.74% 8.13% 26.57%
======= ======== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............................ $186,354 $ 94,676 $ 90,282 $ 46,324
Ratio of expenses to average net assets ...................... 0.97%(b) 0.95%(b) 1.20%(b) 1.15%(b)
Ratio of net investment income (loss) to average net assets .. 0.06%(b) 0.10%(b) (0.19)%(b) (0.12)%(b)
Portfolio turnover rate ...................................... 44% 96% 44% 96%
</TABLE>
92
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SIX MONTHS ----------------------------------------------------------------
ENDED
JUNE 30,
1998 1997 1996 1995 1994 1993*
----------------- ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period (a) ................ $ 11.89 $ 11.29 $ 11.52 $ 10.15 $ 11.12 $ 10.94
--------- -------- -------- -------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........ 0.25 0.49 0.50 0.60 0.55 0.52
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions ................ 0.69 0.97 0.07 1.43 (1.00) 0.65
--------- -------- -------- -------- ------- --------
Total from investment
operations .................. 0.94 1.46 0.57 2.03 (0.45) 1.17
--------- -------- -------- -------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income ........... (0.24) (0.49) (0.51) (0.59) (0.52) (0.50)
Dividends in excess of net
investment income ........... -- -- -- -- -- (0.00)
Distributions from
realized gains .............. -- (0.37) (0.27) (0.07) -- (0.49)
Distributions in excess of
realized gains .............. -- -- (0.02) -- -- --
--------- -------- -------- -------- ------- --------
Total dividends and
distributions ............... (0.24) (0.86) (0.80) (0.66) (0.52) (0.99)
--------- -------- -------- -------- ------- --------
Net asset value, end of
period ....................... $ 12.59 $ 11.89 $ 11.29 $ 11.52 $ 10.15 $ 11.12
========= ======== ======== ======== ======= ========
Total return (d) .............. 7.93% 13.25% 5.21% 20.40% (4.10)% 10.76%
========= ======== ======== ======== ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ...................... $ 331,530 $307,847 $282,402 $252,101 $173,691 $114,418
Ratio of expenses to
average net assets ........... 0.53%(b) 0.57% 0.61% 0.59% 0.59% 0.60%
Ratio of net investment
income to average net
assets ....................... 4.08%(b) 4.17% 4.48% 5.48% 5.22% 4.49%
Portfolio turnover rate ....... 43% 206% 181% 287% 228% 178%
<CAPTION>
CLASS IB
---------------------------------
SIX MONTHS MAY 1,
ENDED 1997 TO
JUNE 30, DECEMBER 31,
1998 1997
----------------- ---------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning
of period (a) ................ $ 11.88 $ 11.29
--------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........ 0.24 0.31
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions ................ 0.69 1.01
--------- --------
Total from investment
operations .................. 0.93 1.32
--------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income ........... (0.22) (0.36)
Dividends in excess of net
investment income ........... -- --
Distributions from
realized gains .............. -- (0.37)
Distributions in excess of
realized gains .............. -- --
--------- --------
Total dividends and
distributions ............... (0.22) (0.73)
--------- --------
Net asset value, end of
period ....................... $ 12.59 $ 11.88
========= ========
Total return (d) .............. 7.81% 11.84%
========= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ...................... $ 15,481 $ 5,694
Ratio of expenses to
average net assets ........... 0.78%(b) 0.80%(b)
Ratio of net investment
income to average net
assets ....................... 3.85%(b) 3.82%(b)
Portfolio turnover rate ....... 43% 206%
</TABLE>
93
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, --------------
1998 1997
------------------ --------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period (a) ........ $ 17.58 $ 16.64
-------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.29 0.58
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions .................................. 1.65 1.86
-------- ----------
Total from investment operations ............... 1.94 2.44
-------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.28) (0.59)
Dividends in excess of net investment
income ........................................ -- --
Distributions from realized gains .............. -- (0.91)
Distributions in excess of realized gains ...... -- --
Tax return of capital distributions ............ -- --
-------- ----------
Total dividends and distributions .............. (0.28) (1.50)
-------- ----------
Net asset value, end of period .................. $ 19.24 $ 17.58
======== ==========
Total return (d) ................................ 11.04% 15.06%
======== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............... $1,885,867 $1,724,089
Ratio of expenses to average net assets ......... 0.45%(b) 0.45%
Ratio of net investment income to average net
assets ......................................... 3.09%(b) 3.30%
Portfolio turnover rate ......................... 40% 146%
<CAPTION>
CLASS IA
-----------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
1996 1995 1994 1993*
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (a) ........ $ 16.76 $ 14.87 $ 16.67 $ 16.19
---------- ---------- --------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.53 0.54 0.45 0.50
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions .................................. 1.31 2.36 (1.78) 1.46
---------- ---------- --------- ----------
Total from investment operations ............... 1.84 2.90 (1.33) 1.96
---------- ---------- --------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.53) (0.54) (0.44) (0.50)
Dividends in excess of net investment
income ........................................ -- -- (0.03) --
Distributions from realized gains .............. (1.40) (0.47) -- (0.95)
Distributions in excess of realized gains ...... (0.03) -- -- (0.03)
Tax return of capital distributions ............ -- -- (0.00) --
---------- ---------- --------- ----------
Total dividends and distributions .............. (1.96) (1.01) (0.47) (1.48)
---------- ---------- --------- ----------
Net asset value, end of period .................. $ 16.64 $ 16.76 $ 14.87 $ 16.67
========== ========== ========= ==========
Total return (d) ................................ 11.68% 19.75% (8.02)% 12.28%
========== ========== ========= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............... $1,637,856 $1,523,142 $1,329,820 $1,364,640
Ratio of expenses to average net assets ......... 0.41% 0.40% 0.39% 0.39%
Ratio of net investment income to average net
assets ......................................... 3.15% 3.33% 2.87% 2.99%
Portfolio turnover rate ......................... 177% 186% 115% 99%
</TABLE>
94
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
June 30, 1998
ALLIANCE GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------------------
1998 1997 1996 1995 1994 1993*
------------------ -------------- -------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period (a) ............... $ 18.55 $ 17.20 $ 17.68 $ 14.66 $ 15.61 $ 14.69
-------- ---------- ---------- -------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income........ 0.21 0.41 0.40 0.57 0.50 0.43
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions ............... 1.95 2.43 1.66 3.24 (0.98) 1.79
-------- ---------- ---------- -------- ------- --------
Total from investment
operations ................. 2.16 2.84 2.06 3.81 (0.48) 2.22
-------- ---------- ---------- -------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income .......... (0.20) (0.46) (0.40) (0.54) (0.46) (0.42)
Dividends in excess of
net investment
income ..................... -- -- (0.03) (0.01) (0.01) --
Distributions from
realized gains.............. -- (1.03) (2.10) (0.24) -- (0.88)
Distributions in excess
of realized gains .......... -- -- (0.01) -- -- --
-------- ---------- ---------- -------- ------- --------
Total dividends and
distributions .............. (0.20) (1.49) (2.54) (0.79) (0.47) (1.30)
-------- ---------- ---------- -------- ------- --------
Net asset value, end of
period ...................... $ 20.51 $ 18.55 $ 17.20 $ 17.68 $ 14.66 $ 15.61
======== ========== ========== ======== ======= ========
Total return (d) ............. 11.70% 16.87% 12.61% 26.37% (3.15)% 15.26%
======== ========== ========== ======== ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ..................... $1,851,126 $1,630,389 $1,301,643 $896,134 $492,478 $278,467
Ratio of expenses to
average net assets .......... 0.55%(b) 0.57% 0.57% 0.56% 0.59% 0.62%
Ratio of net investment
income to average net
assets ...................... 2.15%(b) 2.18% 2.31% 3.43% 3.32% 2.71%
Portfolio turnover rate ...... 50% 121% 190% 107% 131% 118%
<CAPTION>
CLASS IB
----------------------------------------------
SIX MONTHS OCTOBER 2,
ENDED YEAR ENDED 1996 TO
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
--------------- -------------- ---------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning
of period (a) ............... $ 18.52 $ 17.19 $ 16.78
-------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income........ 0.19 0.36 0.07
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions ............... 1.95 2.43 0.71
-------- ------- --------
Total from investment
operations ................. 2.14 2.79 0.78
-------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income .......... (0.17) (0.43) (0.02)
Dividends in excess of
net investment
income ..................... -- -- (0.09)
Distributions from
realized gains.............. -- (1.03) (0.02)
Distributions in excess
of realized gains .......... -- -- (0.24)
-------- ------- --------
Total dividends and
distributions .............. (0.17) (1.46) (0.37)
-------- ------- --------
Net asset value, end of
period ...................... $ 20.49 $ 18.52 $ 17.19
======== ======= ========
Total return (d) ............. 11.56% 16.58% 4.64%
======== ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ..................... $ 60,504 $35,730 $ 472
Ratio of expenses to
average net assets .......... 0.80%(b) 0.82% 0.84%(b)
Ratio of net investment
income to average net
assets ...................... 1.92%(b) 1.88% 1.69%(b)
Portfolio turnover rate ...... 50% 121% 190%
</TABLE>
95
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
June 30, 1998
* Prior to July 22, 1993, Equitable Capital Management Corporation
("Equitable Capital") served as the investment adviser to the Trust. On
July 22, 1993, Alliance Capital Management L.P. ("Alliance") acquired the
business and substantially all of the assets of Equitable Capital and
became the investment adviser to the Trust.
(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 Portfolio--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.
96
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000759751
<NAME> THE HUDSON RIVER TRUST
<SERIES>
<NUMBER> 011
<NAME> ALLIANCE COMMON STOCK PORTFOLIO - CLASS IA
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 8,247,760,627
<INVESTMENTS-AT-VALUE> 11,905,232,646
<RECEIVABLES> 112,633,600
<ASSETS-OTHER> 82,125,812
<OTHER-ITEMS-ASSETS> 995,733,730
<TOTAL-ASSETS> 13,095,725,788
<PAYABLE-FOR-SECURITIES> 144,218,856
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,137,666,951
<TOTAL-LIABILITIES> 1,281,885,807
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,226,206,249
<SHARES-COMMON-STOCK> 443,517,632
<SHARES-COMMON-PRIOR> 431,744,475
<ACCUMULATED-NII-CURRENT> 11,560,589
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 973,244,234
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,602,828,909
<NET-ASSETS> 11,311,406,877
<DIVIDEND-INCOME> 48,277,033
<INTEREST-INCOME> 25,412,523
<OTHER-INCOME> 0
<EXPENSES-NET> (20,730,268)
<NET-INVESTMENT-INCOME> 52,959,288
<REALIZED-GAINS-CURRENT> 797,447,726
<APPREC-INCREASE-CURRENT> 931,510,806
<NET-CHANGE-FROM-OPS> 1,781,917,820
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (49,037,339)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,721,723
<NUMBER-OF-SHARES-REDEEMED> (13,929,238)
<SHARES-REINVESTED> 1,980,672
<NET-CHANGE-IN-ASSETS> 2,253,066,248
<ACCUMULATED-NII-PRIOR> 8,941,474
<ACCUMULATED-GAINS-PRIOR> 175,796,508
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 19,223,982
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,730,268
<AVERAGE-NET-ASSETS> 10,293,349,338
<PER-SHARE-NAV-BEGIN> 21.61
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 3.88
<PER-SHARE-DIVIDEND> (0.11)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.50
<EXPENSE-RATIO> 0.38
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000759751
<NAME> THE HUDSON RIVER TRUST
<SERIES>
<NUMBER> 012
<NAME> ALLIANCE COMMON STOCK PORTFOLIO - CLASS IB
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 8,247,760,627
<INVESTMENTS-AT-VALUE> 11,905,232,646
<RECEIVABLES> 112,633,600
<ASSETS-OTHER> 82,125,812
<OTHER-ITEMS-ASSETS> 995,733,730
<TOTAL-ASSETS> 13,095,725,788
<PAYABLE-FOR-SECURITIES> 144,218,856
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,137,666,951
<TOTAL-LIABILITIES> 1,281,885,807
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,226,206,249
<SHARES-COMMON-STOCK> 19,731,370
<SHARES-COMMON-PRIOR> 10,601,628
<ACCUMULATED-NII-CURRENT> 11,560,589
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 973,244,234
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,602,828,909
<NET-ASSETS> 502,433,104
<DIVIDEND-INCOME> 48,277,033
<INTEREST-INCOME> 25,412,523
<OTHER-INCOME> 0
<EXPENSES-NET> (20,730,268)
<NET-INVESTMENT-INCOME> 52,959,288
<REALIZED-GAINS-CURRENT> 797,447,726
<APPREC-INCREASE-CURRENT> 931,510,806
<NET-CHANGE-FROM-OPS> 1,781,917,820
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,302,834)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,160,878
<NUMBER-OF-SHARES-REDEEMED> (83,863)
<SHARES-REINVESTED> 52,727
<NET-CHANGE-IN-ASSETS> 2,253,066,248
<ACCUMULATED-NII-PRIOR> 8,941,474
<ACCUMULATED-GAINS-PRIOR> 175,796,508
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 19,223,982
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,730,268
<AVERAGE-NET-ASSETS> 351,744,719
<PER-SHARE-NAV-BEGIN> 21.58
<PER-SHARE-NII> 0.09
<PER-SHARE-GAIN-APPREC> 3.87
<PER-SHARE-DIVIDEND> (0.08)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.46
<EXPENSE-RATIO> 0.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000759751
<NAME> THE HUDSON RIVER TRUST
<SERIES>
<NUMBER> 021
<NAME> ALLIANCE MONEY MARKET PORTFOLIO - CLASS IA
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 675,482,450
<INVESTMENTS-AT-VALUE> 675,646,698
<RECEIVABLES> 5,744,245
<ASSETS-OTHER> 190,018
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 681,580,961
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,003,396
<TOTAL-LIABILITIES> 7,003,396
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 673,763,622
<SHARES-COMMON-STOCK> 45,327,708
<SHARES-COMMON-PRIOR> 44,192,317
<ACCUMULATED-NII-CURRENT> 624,574
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25,121
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 164,248
<NET-ASSETS> 462,290,303
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,188,899
<OTHER-INCOME> 0
<EXPENSES-NET> (1,390,288)
<NET-INVESTMENT-INCOME> 15,798,611
<REALIZED-GAINS-CURRENT> 5,716
<APPREC-INCREASE-CURRENT> 52,377
<NET-CHANGE-FROM-OPS> 15,856,704
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (11,198,129)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 59,133,390
<NUMBER-OF-SHARES-REDEEMED> (59,096,740)
<SHARES-REINVESTED> 1,098,741
<NET-CHANGE-IN-ASSETS> 100,942,115
<ACCUMULATED-NII-PRIOR> 149,936
<ACCUMULATED-GAINS-PRIOR> 19,405
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,077,532
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,390,288
<AVERAGE-NET-ASSETS> 460,478,673
<PER-SHARE-NAV-BEGIN> 10.18
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.25)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.20
<EXPENSE-RATIO> 0.39
<AVG-DEBT-OUTSTANDING> 0
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