IDEX SERIES FUND Annual Report
SEPTEMBER 30, 1996
OCTOBER 31, 1996
Fellow Shareholders:
All things considered, it's been another wonderful year.
Indeed, the Dow Jones Industrial Average, perhaps the most widely known market
measure in the world, now stands more than a thousand points higher than it did
just twelve months ago. A spectacular pace to be sure, and notably faster than
the market's historical average of 10% a year. Moreover, the 100-year-old
bellwether is helping to measure what many believe to be the seventh year of the
most consistent bull market in history.
But make no mistake, over the course of this last year the financial markets
have been buffeted by more volatility than they-and we-have experienced in some
time. As a result, it's left a degree of nervousness not typically associated
with the average investor in the midst of a bull market.
The relatively measured rise in the stock market averages does, in fact, mask
some rather abrupt corrections in many issues, especially in some of the more
unseasoned sectors of the market. Furthermore, the bond market has been
tumultuous at times as well, with long rates, so widely expected to move towards
5% as 1996 began, nudging instead above 7%. Not so surprisingly, this commotion
has occasionally left many folks a bit unnerved with regard to their own
financial plans, especially considering how far the markets have come in such a
short time.
We're pleased we can play a part in your unique financial plan. We're extremely
proud of the manner in which our individual portfolio managers have guided their
Portfolios through these recent and remarkable times and we're delighted with
the extraordinary results they have posted. Please take a few minutes and review
the personal comments from these outstanding professionals regarding their
respective Portfolios and just how they've been investing for them. We invite
you to evaluate these reports and review the data, including major equity
positions and industry weightings. All of this information is intended to
provide an insight into what has been some of the industry's finest performance.
This period also marks a uniquely important event in the continuing development
of our IDEX family of funds-completion of a reorganization of IDEX Fund and IDEX
Fund 3 into the IDEX II Series Fund Growth Portfolio. Effective with the
reorganization's implementation on September 20, 1996 the IDEX II Series Fund
has now become the IDEX Series Fund. While this change has virtually no effect
on the underlying investments, the streamlining of operations does allow us the
chance to reduce expenses based on a larger Growth Portfolio asset base. All of
the details are included in the Prospectus/Proxy Statement dated July 25, 1996.
To streamline administration of tax reporting for the Portfolios, IDEX Series
Fund has also changed its fiscal year end from September 30 to October 31. We
have also included, in this report, information for the one month period ended
October 31, 1996. Future semiannual and annual reports will be for periods
ended April 30 and October 31, respectively. Please call IDEX Customer Service
at 1-800-851-9777 for more information on this or any other IDEX matter.
As we look forward to next year, we can be sure of our commitment to bring you
incomparable service and superior investment opportunities. As for the financial
markets, however, we can't make any predictions. For the fact remains, in the
short term the markets lack predictability. In the long term, though, they are
less volatile. Strong returns are usually not achieved by moving in and out of
the market. They come from staying invested-through good times and bad.
Investing, after all, is not an activity, it's a process.
The Portfolios of the IDEX Series Fund are managed not only with long-term
results in mind but long-term relationships as well. Our highest priority
remains the safety of the funds you've entrusted to us. We respect your personal
task of financial planning and appreciate the opportunity to help.
Sincerely yours,
/s/ Jack R. Kenny /s/ G. John Hurley
- ----------------- -----------------
Jack R. Kenny G. John Hurley
Aggressive Growth Portfolio
The markets have been dominated over the last twelve months by strong divergent
opinions concerning the economy, specifically whether or not the economy is
growing too fast, which will lead to inflation and tighter monetary policy, or
growing at a modest rate with low inflation and no Fed action. Exacerbating
these divergent opinions on the economy were the severe snowstorms in the
northeast as well as a partial government shutdown early in the year.
Additionally, certain industries like technology, particularly semiconductor
companies, experienced disappointing earnings in the fourth quarter of 1995 and
the first quarter of 1996. These factors all contributed to extremely volatile
market conditions. The Aggressive Growth Portfolio underperformed its benchmark
index, the S&P 500, for the year ended September 30, 1996. We invite you to
review the Portfolio Performance page for details.
The one event which stands out the most was the correction the markets
experienced between June and July. The S&P 500 and NASDAQ Composite both
declined rapidly and dramatically, leaving investors asking "Why?" The answer
appears to be related to the continued divergent opinions about the economy as
well as several important spot events. These included extremely disappointing
earnings reports from Motorola and Hewlett Packard (neither stock was owned by
the Portfolio), which touched off a wave of panic selling in technology stocks,
a slowdown in June mutual fund purchases, and pressure on several companies in
the medical field, especially HMO's, as they reported very disappointing
earnings.
As a result of the sell-off, we eliminated some of the Portfolio's more
controversial technology stocks as well as other holdings we felt would suffer
over the short term. In total, we eliminated 22 holdings in the third quarter of
1996, including companies such as Linear Technology, Altera Corp., United
Healthcare Corp., and Oxford Health Plans, Inc. These eliminations, coupled with
consistently strong net cash flows, brought the cash position of the Portfolio
to 19.9% by the end of July. While this cash position may not have been large
enough to meaningfully slow down the decline (our studies show a 40% cash
position is required), it did provide some protection. Additionally, the war
chest of cash which was built up in July provided ample opportunity to purchase
stocks at exceptional prices when the market started to rebound in August. In
total, the Portfolio added 14 new holdings in the third quarter, including Home
Depot, Inc., Citicorp, Sun Microsystems, and Dollar General Corp.
Along with the markets, the Aggressive Growth Portfolio rebounded nicely in
August and September as it became apparent that the economy was growing at a
slower pace than previously imagined. As a result, the Federal Reserve passed on
tightening interest rates at both the August 20th and September 24th Federal
Open Market Committee meetings. The economic facts appear to be unchanged. Some
data, such as Consumer Confidence numbers and the recent bounce in the National
Association of Purchasing Managers Index, suggest some economic vigor. On the
other hand, there is mounting evidence that the economy is in fact slowing. Most
notable are the decline in auto sales (August), spotty retail sales as well as
the August/September Federal Reserve Beige Book which suggests modest growth. A
significant fact supporting the thesis that the second half will decelerate from
the first half is that spot checks of credit card providers show an almost
uniform desire to curtail credit.
The fact remains that inflation is not really an issue despite all of the lip
service which the financial press has given it. The bond market continues to
trade in a comparatively narrow bandwidth between 6.75% and 7.20% as the economy
continues to be ambiguous about its strength. In addition, there has been a
resurgence in monthly cash flows back to equity funds. Moreover, the
relationship between the earnings yield on stocks and the yield of the long bond
continues to be very favorable, which suggests the possibility for excellent
stock market conditions for the fourth quarter.
The recent surge in the equity averages has brought growth stocks to very low
valuations. This sets up the probability that as investors look towards 1997
earnings, they will turn to growth stocks as a way to invest surplus cash.
Should this happen, it could mean strong performance for the Aggressive Growth
Portfolio.
/s/David Alger
- --------------
David Alger
Aggressive Growth Portfolio Manager
Aggressive Growth Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (12/2/94) was
worth $15,901.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year Inception Date
<S> <C> <C> <C>
Class A (without sales load) (4.91)% 32.87% 12/2/94
Class A** (with sales load) (10.13)% 26.51% 12/2/94
S&P 500*** 20.20% 28.40% 12/2/94
Class B (without sales load) (5.33)% (5.33)% 10/1/95
Class B**(with sales load) (10.33)% (10.33)% 10/1/95
Class C (5.22)% 32.36% 12/2/94
</TABLE>
* Aggressive Growth Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
** Aggressive Growth Portfolio Class A Shares performance reflects the maximum
sales charge of 5.5%. Aggressive Growth Portfolio Class B Shares reflects the
maximum applicable contingent deferred sales charge (5% in the first year,
decreasing to 0% after 6 years).
*** The Standard & Poor's 500 Index is an unmanaged index used as a general
measure of market performance. Calculations assume dividends and capital gains
are reinvested and do not include any managerial expenses. From inception
calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 1.7% -
Consumer Cyclical 16.2% 11.8%
Consumer Non-Cyclical 13.7% 11.5%
Energy 3.6% -
Financial 10.6% 2.3%
Industrial 6.2% 3.0%
Technology 39.1% 82.9%
Utilities 0.9% --
Short-term 9.8% --
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Capital Appreciation Portfolio
After finishing 1995 on a downward stroke, interest rates have risen
substantially throughout 1996, largely due to inflationary concerns. The third
quarter saw modest swings in interest rates, although Treasuries finished near
where they began. Despite these fluctuations, most markets continued to advance,
though the sharp downdraft in July and August punished small and mid-cap stocks.
Still, large stocks ended the period in or near record territory and smaller
stocks were not far behind. We are pleased to report that for the year ended
September 30, 1996, the Capital Appreciation Portfolio outperformed its
benchmark indexes, the S&P 400 and the S&P 500. We invite you to review its
corresponding Portfolio Performance page for details.
The environment for equities right now is decidedly mixed. When interest rates
backed up in July, small and mid-cap stocks were subjected to indiscriminate
selling. Rates rose because the bond market believed the robust economic growth
of the second quarter would force the Federal Reserve Board's hand and produce
an upturn in interest rates. This scenario failed to materialize, however, and
when the Fed failed to raise short-term rates at its August and September
meetings, long-term rates did an about-face and moved below 7%. Large stocks
rebounded quickly, and the small and mid-cap sectors staged a moderate comeback
that intensified at the end of September.
During the second quarter, I added positions in Matrix Pharmaceuticals and
Fastenal. Our original analysis indicated that Matrix had a promising new drug
delivery system. Matrix experienced a breakdown in the third quarter, however,
which forced its liquidation at a loss. This occurred because subsequent testing
of the drug delivery system demonstrated shockingly lower efficacy than earlier
testing. In addition, marketing costs for another compound Matrix had developed
were way above the company's original estimates. The discrepancies were simply
too great to hold the stock. Matrix was a mistake.
Fastenal, however, has made the kind of steady progress our projections
indicated, so I used market weakness to build the position. The addition of
tools and other equipment lines to Fastenal's base of industrial fasteners
should provide predictable earnings growth and support a higher stock price.
I also purchased more shares of Global DirectMail, which sells computer
peripherals and office products through its commercial catalogue. The company
continues to grow at 25% to 35% annually and is now offering high-ticket
computer hardware via its catalogue. Family Golf Centers is another exciting
concept that has also been meeting or exceeding our estimates. The company's
golf centers combine heated driving ranges, a pro shop, and elaborate miniature
golf courses. Revenue and earnings have been growing internally and via
acquisitions of large "mom and pop" driving ranges. PriCellular, which provides
cellular services to small, strategically located markets where competition is
low, also performed well due to subscriber growth in excess of 50%. Finally,
Wisconsin Central traded well because Wall Street is starting to appreciate the
attractiveness of the company's acquisition of British Rail's freight operations
from the U.K. government.
Among our foreign holdings, J.D. Wetherspoon and PizzaExpress were standouts.
Wetherspoon, a British pub chain, reported earnings growth of 50% despite
adopting more conservative accounting methods. PizzaExpress' earnings also grew
by 50% and it continues to be one of the best managed companies we own.
I am still holding Paging Network, HFS, and DepoTech, all of which declined this
quarter under pressure from the general market. Paging Network is the subject of
concerns about competition from Personal Communication Systems, concerns I
believe are overblown. The company's new paging service, Voice Now, which
functions like an answering machine, is due for rollout in early 1997. Paging
Network's core business is still growing at better than 35%, even without the
Voice Now product. I did trim our position in HFS, the hotel franchisor,
although the stock remains a large position. The stock has tripled since we
started buying it, and I continue to own it in size because the company's
prospects are still improving and pushing our estimates higher. HFS is
purchasing rental car company Avis in October and has announced an agreement to
acquire Resort Condominiums International, a condominium timeshare service. With
regard to DepoTech, while the stock was hit hard in the July selloff, the
fundamentals have actually improved. The company has developed an injectable
pain-relief compound that can be applied directly to a very specific site (for
example, to a knee post-surgically) and thus mitigate the need for a general, or
systemic, pain reliever.
All together, I believe we own some very exciting companies. If the apparent
slowdown in economic growth that emerged near quarter end proves a temporary
development, or if the Federal Reserve Board's recent inaction on interest rates
proves an election year fluke, it will raise the hurdle for stock selection. My
focus remains on finding stocks of companies with rapid earnings growth (at
least 15%), low risk (predictability, sustainability), and a low price
(underowned, underfollowed) relative to future growth prospects.
Despite the emphasis on investing in low-risk businesses, it's likely we will
still have our share of failures. I was highly disappointed by our losses in
Matrix Pharmaceuticals and Medaphis, for example. Overall, however, my
enthusiasm is undiminished. The combination of sound strategy and diligent
research should allow us to be invested in rapidly growing companies while
having less than our "fair" share of disappointments, in the long-term.
/S/James P. Goff
- ----------------
James P. Goff
Capital Appreciation Portfolio Manager
Capital Appreciation Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (12/2/94) was
worth $15,894.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year Inception Date
<S> <C> <C> <C>
Class A (without sales load) 24.35% 32.87% 12/2/94
Class A** (with sales load) 17.50% 28.81% 12/2/94
S&P 500*** 20.20% 28.40% 12/2/94
S&P 400*** 14.00% 24.00% 12/2/94
Class B (without sales load) 23.63% 23.63% 10/1/95
Class B** (with sales load) 18.63% 18.63% 10/1/95
Class C 23.63% 32.23% 12/2/94
</TABLE>
* Capital Appreciation Portfolio performance includes dividends and capital
gains reinvested. Investment return and principal value will fluctuate; shares
when redeemed may be worth more or less than their original cost. Past
performance does not guarantee future results. Periods less than one year
represent total return and are not annualized.
**Capital Appreciation Portfolio Class A Shares performance reflects the maximum
sales charge of 5.5%. Capital Appreciation Portfolio Class B Shares reflects
the maximum applicable contingent deferred sales charge (5% in the first year,
decreasing to 0% after 6 years).
***The Standard & Poor's 500 Index and Standard & Poor's MidCap 400 Index are
unmanaged indices used as a general measure of market performance. Calculations
assume dividends and capital gains are reinvested and do not
include any managerial expenses. From inception calculation is based on life of
Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 2.2% 4.1%
Consumer Cyclical 38.4% 22.1%
Consumer Non-Cyclical 15.4% 17.6%
Financial 5.3% 15.0%
Independent - 2.4%
Industrial 12.9% 6.3%
Technology 24.0% 23.3%
Utilities 1.5% 5.1%
Short-term 4.0% 1.9%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Global Portfolio
After declining throughout 1995, interest rates experienced sharp increases this
year. Yield on the 30-year U.S. Treasury Bond jumped nearly 1% through September
alone, resulting in substantial market volatility. Still, equity markets on the
whole performed relatively well. We obtained good returns from a number of our
holdings, including many of our European positions. We are pleased to report
that for the year ended September 30, 1996, the Global Portfolio outperformed
its benchmark index, the Morgan Stanley Capital International World Index. We
invite you to review its corresponding Portfolio Performance page for details.
The price volatility this past quarter did not slow our selection process. On
the contrary, it actually abetted it. I have long maintained that our rigorous
bottom-up investment approach works even better in erratic markets because
volatility further exaggerates market inefficiencies. Stocks tend to become
overvalued or undervalued to a much greater degree, and I can capitalize on
these discrepancies.
A good example would be Danka Business Systems, a British marketer of copier and
other office equipment. The company is fast becoming a dominant competitor in a
consolidating industry and is benefiting from a growing trend toward outsourcing
copier and printing operations. Our estimates indicate that Danka should grow
25% to 30% annually over the next three years. But costs associated with the
company's rapid growth impacted second quarter results and the stock declined.
We decided this setback was temporary, and I was able to build a position when
the stock appeared cheap. Our analysis proved correct, and the stock gained over
35% in the third quarter.
Rentokil also made a significant contribution to the Portfolio's results. The
company provides a variety of commercial services, from pest control to hospital
waste management and disposal. Rentokil is extremely well-managed and has been
growing internally as well as through acquisitions. The stock's strong
performance the last three months was driven by the company's acquisition of a
major competitor, whose operations it quickly streamlined. The market has
seemingly awakened to the fact that Rentokil is producing a powerful and
consistent earnings stream through its expanding network of global operations.
In the U.S., SunGard Data Systems and EDS performed well. EDS is a familiar, but
powerful story. The company is a dominant provider of data processing to
business, and over the next 12 months will be bidding on billions in contracts.
SunGard, a provider of disaster recovery systems and investment data and
software services, posted good results. The company's investment service
programs are experiencing good demand, and its data recovery systems have
enormous potential. SunGard stores data off-site, in a secure location, for a
monthly fee. These fees provide SunGard with a very consistent revenue and
earnings stream. SunGard is also aggressively marketing its back-up capabilities
to client-server networks, which is an enormous market.
AMRE was a major disappointment for us. The company provides remodeling services
to Century 21, a subsidiary of HFS. Third quarter results were well below
estimates and the stock sold off. We are still expecting strong numbers in 1997
and 1998, however, so I am holding the position. Medaphis, which provides
accounting and billing services to physician's groups, hit an air pocket when
the company had trouble consolidating several recent acquisitions, and earnings
failed to make our estimates. Due to its unclear earnings outlook, I sold the
stock. Longtime holding Millicom International, a cellular services and
equipment provider in emerging markets, came under profit-taking recently. Its
business is still very robust, however, and I am maintaining the position.
Economic data in September suggested the U.S. economy was slowing, while markets
in that both the U.S. and Europe rallied. The financial markets in general,
however, remain very sensitive to U.S. interest rates. On the opposite side of
the coin, the excellent business climate, benign inflation, and low interest
rates are lending considerable support to equity prices. If rates should begin
to move up again, however, the current positive environment could change
dramatically. Whatever course the broad market chooses, good individual stock
selection can mitigate downtrends and amplify advances. That remains my focus.
/S/Helen Young Hayes
- --------------------
Helen Young Hayes
Global Portfolio Manager
Global Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (10/1/92) was
worth $21,741.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year Inception Date
<S> <C> <C> <C>
Class A (without sales load) 25.04% 23.13% 10/1/92
Class A**(with sales load) 18.18% 21.42% 10/1/92
MSCIW*** 14.20% 14.40% 10/1/92
Class B (without sales load) 24.70% 24.70% 10/1/95
Class B** (with sales load) 19.70% 19.70% 10/1/95
Class C 24.91% 19.07% 10/1/93
</TABLE>
* Global Portfolio performance includes dividends and capital gains
reinvested.
Investment return and principal value will fluctuate; shares when redeemed may
be worth more or less than their original cost. Past performance does not
guarantee future results. Periods less than one year represent total return and
are not annualized.
**Global Portfolio Class A Shares performance reflects the maximum sales charge
of 5.5%. Global Portfolio Class B Shares reflects the maximum applicable
contingent deferred sales charge (5% in the first year, decreasing to 0% after 6
years).
***The Morgan Stanley Capital International World (MSCIW) Index is an unmanaged
index used as a general measure of market performance. Calculations assume
dividends and capital gains are reinvested and do not include any managerial
expenses. From inception calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 2.6% 1.0%
Consumer Cyclical 16.3% 23.0%
Consumer Non-Cyclical 19.6% 14.6%
Energy -- 0.6%
Financial 10.2% 10.8%
Independent 2.7% 7.1%
Industrial 19.1% 10.9%
Technology 24.1% 26.9%
Utilities 1.3% 1.4%
Short-term 3.4% --
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Global Portfolio
Investment Holdings By Country
SEPTEMBER 30, 1996
As a Percentage of Net Assets
Europe (61.07%)
Austria 1.12%
Belgium 1.11%
Denmark 0.15%
Finland 2.69%
France 3.26%
Germany 8.45%
Italy 3.14%
Luxembourg 1.69%
Netherlands 7.74%
Norway 0.23%
Portugal 0.34%
Spain 0.07%
Sweden 9.34%
Switzerland 8.81%
United Kingdom 12.93%
Asia/Pacific Rim (14.37%)
Hong Kong 1.25%
India 1.34%
Indonesia 1.27%
Japan 8.54%
New Zealand 0.01%
Philippines 0.88%
South Korea 0.83%
Taiwan 0.18%
Thailand 0.07%
Latin America (6.08%)
Argentina 0.75%
Brazil 1.48%
Chile 0.26%
Mexico 2.77%
Peru 0.82%
Middle East/Africa (1.64%)
Israel 1.46%
South Africa 0.18%
Australia
Australia 1.31%
North America (15.53%)
Canada 0.67%
United States 10.77%
Cash and Other 4.09%
Growth Portfolio
While 1995 closed out one of the strongest financial markets on record, 1996
ushered in renewed volatility. More recent fluctuations have served to remind
investors that the market can move in two directions. In some areas, such as
technology and other high multiple stocks, the action was brutal, marked in many
cases by indiscriminate selling. Even though the August rebound and the rally in
September gave a lift to large stocks, technology and smaller issues did not
begin to catch up until late September.
Although the Growth Portfolio performed well for the year, third quarter
performance was negatively affected as many of our faster-growing, high-multiple
companies were unable to match the performance of larger companies. A few of our
technology positions also lagged, although several large holdings performed
well. Overall, we are pleased to report that for the year ended September 30,
1996, the Portfolio outperformed its benchmark index, the S&P 500. We invite
you to review its corresponding Portfolio Performance page for details.
The volatility in equities can be traced directly to interest rates. Rates rose
mostly because the bond market believed the strong economic growth of the second
quarter would force the Federal Reserve Board's hand and precipitate an upturn
in interest rates. But this scenario failed to materialize. Instead, after the
Fed left short-term rates unchanged at its August and September meetings, long
rates did an about-face and once again moved below 7%, setting in motion record
highs in several equity indexes.
Given the market's volatility, my strategy was to stay the course. We had a
similar market phenomenon this past January, when stocks with superior
fundamentals lagged the market. I firmly believe the underlying fundamentals of
our companies continue to be such that they will provide above-market returns
over time, though they may fluctuate adversely from quarter to quarter.
Therefore, my investment strategy remains unchanged. I intend to focus on
individual companies that are poised to capitalize on fundamental changes in
economic and demographic trends, both here and abroad. I am enthusiastic about
sectors such as health care, financial services, telecommunications, technology,
and some selected retailers that I believe have especially exciting prospects. I
want to purchase companies within these areas that have exceptional individual
characteristics. The short-term risk may be higher with some of these companies
than with more mature businesses, but the long-term potential is proportionately
much higher as well. I have maintained a relatively high cash position during
the recent months because even when I found a company that fit my criteria, I
held out for better prices. In a volatile market, the best strategy is often to
be opportunistic-and patient.
Several of the Portfolio's large holdings posted good results this year. Cisco
Systems, the dominant equipment provider for the entire networking spectrum,
grew sales last year by 60% and still is selling at only 25 times our forward
year's earnings estimates. Drug developer Pfizer also posted good results, as
did other familiar names, including Ascend Communications, a provider of
Internet connecting equipment; Citicorp; Microsoft, whose new NT software is
experiencing excellent demand; and Oxford Health Plans, perhaps the most highly
respected HMO in the country.
I took profits in U.S. Robotics, a developer and marketer of high-speed modems
and software for network management systems, when the growth rate began to slow.
I also trimmed HFS slightly, although it remains a very large position. The
stock has been a terrific performer, and we continue to own it in size because
the company's prospects are still improving and pushing our estimates higher.
The company continues to build an incredible cross-selling network around its
lodging and real estate subsidiaries. HFS is purchasing rental car company Avis
in October and has announced an agreement to acquire Resort Condominiums
International, a condominium timeshare service.
As I suggested earlier, this year's market volatility is the product of the
investment community's uncertainty about current economic conditions and their
consequences for future inflation. Moreover, the economy continues to give off
mixed signals-inflation is low, but housing demand is very robust and consumer
confidence is still hovering somewhere in the stratosphere. The Federal Reserve
Board seems to believe the economy is slowing, and weakness in August durable
goods orders lent credence to the Fed's stance. But with corporate profits
slowing (albeit from record levels), stocks remain very sensitive to rate
movements. If interest rates remain stable or decline, earnings gains should
provide solid support for equities.
Still, I intend to be patient in putting cash to work. In general, I will try to
capitalize on individual price declines and general market volatility to build
positions.
/S/Scott Schoelzel
- ------------------
Scott Schoelzel
Growth Portfolio Manager
Growth Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (5/8/86) was
worth $47,351.
Note: Performance of Class B, C and T Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year 5 year 10 year Inception Date
<S> <C> <C> <C> <C> <C>
Class A (without sales load) 22.41% 13.77% 17.69% 16.76% 5/8/86
Class A** (with sales load) 15.67% 12.49% 17.02% 16.12% 5/8/86
S&P 500**** 20.20% 15.20% 14.90% 14.20% 5/8/86
Class B (without sales load) 21.87% - - 21.87% 10/1/95
Class B** (with sales load) 16.87% - - 16.87% 10/1/95
Class C 22.15% - - 15.39% 10/1/93
Class T*** (w/o sales load) 22.92% 14.17% 17.59% 17.57% 9/20/96
Class T*** (with sales load) 12.49% 12.16% 16.54% 16.66% 9/20/96
</TABLE>
* Growth Portfolio performance includes dividends and capital gains
reinvested.
Investment return and principal value will fluctuate; shares when redeemed may
be worth more or less than their original cost. Past performance does not
guarantee future results. Periods less than one year represent total return and
are not annualized.
**Growth Portfolio Class A Shares performance reflects the maximum sales charge
of 5.5%. Growth Portfolio Class B Shares performance reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing to
0% after 6 years).
*** Growth Portfolio Class T Shares are owned by the former shareholders of
IDEX Fund and IDEX Fund 3 as a result of the recent reorganization. Historical
performance is that of IDEX Fund, from inception on 6/4/85 until the
reorganization on 9/20/96. The average annual total return for Class T Shares
for the period from 9/20/96 - 9/30/96 was 0.81%. All future performance will be
based solely on Class T Shares. Class T Shares performance with sales load
reflects the maximum sales charge of 8.5%.
**** The Standard & Poor's 500 Stock Index is an unmanaged index used as a
general measure of market performance. Calculations assume dividends and capital
gains are reinvested and do not include any managerial expenses. From inception
calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials - 1.4%
Consumer Cyclical 9.3% 5.0%
Consumer Non-Cyclical 17.6% 10.2%
Financial 17.1% 13.6%
Independent 1.6% --
Industrial - 0.4%
Technology 38.1% 58.6%
Utilities 0.3% -
Long-term U.S. Gov't 1.4% 3.0%
Short-term 15.0% 8.3%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
C.A.S.E. Portfolio
The C.A.S.E Growth Portfolio commenced investment operations February 1, 1996.
Its objective of capital growth is achieved through investments in common stocks
of large and small-to-medium-sized companies.
Since the Portfolio's inception, the stock market has been extremely volatile-
the S&P 500 reached new highs in September after falling 4.6% in July. The
NASDAQ has been even more volatile. Our strategy is to invest in stocks of
companies with above-average management, solid balance sheets, below market
price-to-earnings ratios (on both a leading and a lagging basis), above market
insider and institutional buying, and earnings estimates that are being revised
upwards. While generally employing a buy-and-hold posture until fundamentals
dictate a change, the Portfolio may use short-term strategies to take advantage
of changing market conditions.
The months of July, August, and September have essentially been a microcosm of
the market's mood in 1996. Rapid moves, wide price fluctuations, and quick
leadership changes are clear symptoms of the uncertainty in the minds of
investors. Will interest rates rise or fall? Is inflation rising or is it under
control? Will the economy grow too fast, at a nice steady sustainable pace, or
slip into a recession in the near future? As each of these concerns take their
turn dominating the thoughts of investors, stock prices react accordingly and
rapidly. At C.A.S.E., our multi-discipline approach creates a focus on those
industries and companies that will benefit from the current environment. The
quick mood swings of the market, however, have led to an investment approach
across all areas of the economy and with an emphasis only on those companies
exhibiting the strongest price relative characteristics.
Since our initial investing occurred just prior to a major market downturn, the
early performance of the C.A.S.E. Growth Portfolio was adversely affected. The
Portfolio underperformed its benchmark index, the S&P 500, for the eight month
period ended September 30, 1996. We invite you to review its corresponding
Portfolio Performance page for details. Recent performance, however, has
responded well to the Portfolio strategy, thereby confirming its effectiveness.
We are confident that our approach to this fickle market is sound and that
continued superior relative performance is likely.
/s/William E. Lange
-------------------
William E. Lange
C.A.S.E. Portfolio Manager
C.A.S.E. Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (2/1/96) was
worth $9,937.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
Inception Date
<S> <C> <C>
Class A (without sales load) 4.60% 2/1/96
Class A**(with sales load) (1.13)% 2/1/96
S&P 500*** 9.60% 2/1/96
Class B (without sales load) 4.10% 2/1/96
Class B** (with sales load) (0.90)% 2/1/96
Class C 4.20% 2/1/96
</TABLE>
* C.A.S.E. Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**C.A.S.E. Portfolio Class A Shares performance reflects the maximum sales
charge of 5.5%. C.A.S.E. Portfolio Class B Shares reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing to
0% after 6 years).
*** The Standard & Poor's 500 Index is an unmanaged index used as a general
measure of market performance. Calculations assume dividends and capital gains
are reinvested and do not include any managerial expenses.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96
<S> <C>
Basic Materials 3.4%
Consumer Cyclical 11.7%
Consumer Non-Cyclical 14.5%
Financial 7.1%
Independent 3.1%
Industrial 9.1%
Technology 8.8%
Utilities 9.4%
Short-term 25.7%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Tactical Asset Allocation Portfolio
This past year has been quite eventful, both politically and financially.
Although many global occurrences would be perceived negatively if considered in
isolation, the overriding theme for the past 12 months has been steady growth,
low inflation, and greater productivity. Against this backdrop, the U.S. equity
markets performed well. In contrast, the fixed-income markets showed little
positive leadership, mostly due to a concern that growth may have been too
strong to sustain without inflicting inflation pressure into the scenario.
In keeping with our stated objective of competitive investment returns and some
equity downside protection and preservation, the Tactical Asset Allocation
Portfolio began the year with stock exposure in the mid-40% level, and gradually
built to its current level of 55%. This gradual increase is based solely on
taking advantage of favorable valuations due to significant declines in isolated
industries, such as technology and electronic distributors. The balance of the
Portfolio has maintained a conservative "downside protection" profile, split
between short-term (less than 3 1/2 year average maturity) U.S. Government
securities, high-quality corporate fixed-income securities, and staggered 30-60
day commercial paper. Although this portion of the Portfolio is an anchor during
the kind of roaring equity markets we experienced last year, this component can
provide stability and consistency for those investors who have entrusted their
investments to us.
We are quite comfortable that investors in the Tactical Asset Allocation
Portfolio received exactly what was promised. The past 12 months are a testament
to our disciplined approach. Looking at the portfolio structure and holdings, we
believe it is quite clear what we are attempting to do-to maintain a hedge
against market volatility. Our industry exposure maintains a maximum of 10% in
any one area, our largest single equity position is less than 3% of the total
portfolio, and the yield or cash flow to investors is 66% greater than the
current S&P 500. We are pleased to report that for the year ended September 30,
1996, the Portfolio performed well against its benchmark indexes, the S&P 500
and the Lehman Brothers Intermediate Government/Corporate Bond Index. We invite
you to review its corresponding Portfolio Performance page for details.
Looking forward, no one can know for sure what will happen in the markets over
the next one, five, or ten years, but we can make some judgments. For instance,
it seems clear that savings rates will continue to grow for some time as an
increasing number of Americans, especially baby boomers, continue to make the
traditional transition from being net consumers to net savers. This has
favorable long-term implications for financial assets, as increased savings
equals increased demand, and, as we know, increased demand typically translates
into higher prices.
Improvements in productivity translate into growth in real aggregate wealth for
our nation and its citizens. Inevitably, this productivity-derived wealth will
have favorable implications for the cost of capital, savings rates, and the
like. In other words, we believe the long-term outlook for financial markets
remains favorable, and we will work to see that the Tactical Asset Allocation
Portfolio captures a meaningful share of the up movements in the market. Short-
term, we believe conditions are very favorable for our disciplined approach to
management. The lack of market declines since 1990, along with other factors
such as historically expensive valuations for the stock market, combine to make
nearer-term conditions potentially unstable. Indeed, the recent downside
volatility in June and July illustrates that market declines have not been
eradicated. We will continue to diligently balance the two very important goals
of consistency and competitiveness for the Tactical Asset Allocation Portfolio's
investors.
/S/John Riazzi
--------------
John Riazzi
/S/Arvind Sachdeva
------------------
Arvind Sachdeva
Tactical Asset Allocation Portfolio Managers
Tactical Asset Allocation Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (10/1/95) was
worth $10,497.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CATION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
Inception Date
<S> <C> <C>
Class A (without sales load) 11.07% 10/1/95
Class A**(with sales load) 4.97% 10/1/95
S&P 500*** 20.20% 10/1/95
LBIGCB*** (8.80)% 10/1/95
Class B (without sales load) 10.39% 10/1/95
Class B** (with sales load) 5.39% 10/1/95
Class C 10.50% 10/1/95
</TABLE>
* Tactical Asset Allocation Portfolio performance includes dividends and
capital gains reinvested. Investment return and principal value will
fluctuate; shares when redeemed may be worth more or less than their original
cost. Past performance does not guarantee future results. Periods less than
one year represent total return and are not annualized.
**Tactical Asset Allocation Portfolio Class A Shares performance reflects the
maximum sales charge of 5.5%. Tactical Asset Allocation Portfolio Class B
Shares reflects the maximum applicable contingent deferred sales charge (5% in
the first year, decreasing to 0% after 6 years).
*** The Standard & Poor's 500 Index and Lehman Brothers Intermediate
Government/Corporate Bond (LBIGCB) Index are unmanaged indices used as a general
measure of market performance. Calculations assume dividends and capital gains
are reinvested and do not include any managerial expenses.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96
<S> <C>
Basic Materials 10.8%
Consumer Cyclical 13.1%
Consumer Non-Cyclical 2.7%
Energy 2.4%
Financial 17.2%
Independent 1.6%
Industrial 5.5%
Technology 8.0%
Long-term U.S. Gov't 20.0%
Short-term 17.1%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Equity-Income Portfolio
We are pleased to report that for the year ended September 30, 1996, the
EquityIncome Portfolio performed well against its benchmark indexes, the S&P 500
and the Lehman Brothers Intermediate Government/Corporate Bond Index. We invite
you to review its corresponding Portfolio Performance page for details.
The Equity-Income Portfolio remains committed to investing in companies with
strong balance sheets, established market shares within their industries, and
high and sustainable returns on shareholders' equity. We also focus on companies
where a catalyst exists that is expected to transform a company or an industry
into a more profitable and more valuable enterprise. Such situations include
management actions to exit underperforming businesses, the existence of
unrecognized assets of unique value, or consolidation within an industry that
results in a more rational operating environment.
We continue to be cognizant of value as a control over portfolio risk and we are
attentive to a company's ability to pay and grow dividends. An above-average
commitment to medium-size companies remains important to us, as this area of the
market often offers opportunities to invest in shares of companies with
impressive growth prospects and dominant niche-market positions at attractive
values. Finally, we will continue to approach the selection of corporate bonds
as an equity investor, purchasing the debt of those companies that demonstrate
the quality characteristics commensurate with an effectively operating business.
The Portfolio is structured to participate in a significant part of the stock
market's upside while limiting exposure to the downside via a disciplined
approach to equity valuation and investments in a variety of fixed-income
securities. These securities include government notes, corporate bonds, and
convertibles. The Portfolio takes a unique approach to investment selection that
drives the opportunity for each segment of the asset mix (stocks, bonds,
convertibles) to add significant value. Because of the Equity-Income Portfolio's
risk-controlling approach, we think it is suitable for investors of most risk
profiles.
Our intention of capturing a sizable portion of the stock market's upside while
limiting the opportunity for downside volatility proved successful this past
year. The Portfolio's return during the year equaled roughly 80% of the return
of the S&P 500, while only exposing about 75% of the Portfolio to the stock
market. The Portfolio's success is attributable to strong performance in both
the stock and bond portfolio selections. Specifically, equity performance
benefited from a series of instances where we owned stocks of quality companies
dominant in niche businesses that were acquired by larger, more diverse
companies at significant premiums to the then prevailing market prices. A prime
example was the acquisition of Duracell by Gillette at a roughly 20% premium to
Duracell's stock price at the time of the announcement. Additionally, our
decision to avoid the poor performing electric utility sector (a traditional
area of focus for yield-oriented investors) in favor of real estate investment
trusts with attractive yields boosted portfolio performance.
Looking ahead, we expect established, quality companies to continue to be strong
performers as long as investors remain cautious about the sustainability of the
current economic advance. Interest rates are likely to remain steady over the
near term, as limited inflationary pressures are visible at this time.
Interestingly, the current environment is especially suited to the Equity-Income
Portfolio's philosophy and strategy. The third quarter of 1996 witnessed the
reemergence of defensive stocks (specifically financials and healthcare) among
the top performers after two quarters of outperformance by economically-
sensitive stocks. The characteristics of stocks owned within the Portfolio have
a tendency to parallel the qualities of typical defensive stocks. Such
characteristics include conservative levels of debt, an economically insensitive
and steady earnings stream, and an above-average dividend yield.
The Portfolio asset mix at period end was 70% stocks, 5% convertible securities,
5% government bonds, 19% corporate bonds, and 1% in cash. This asset mix is
expected to remain relatively stable over time. Based on our current outlook, we
will continue to emphasize high-quality stocks which are expected to generate
steady earnings and cash flow growth regardless of economic environment. Such
companies generally are valued at a premium by the market during periods of
uncertainty. Additionally, we have been adding to healthcare, energy, and
financial stocks, where we expect attractive investment returns to continue.
/S/Luther King
--------------
Luther King
/S/Scot C. Hollmann
-------------------
Scot C. Hollmann
Equity-Income Portfolio Managers
Equity-Income Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (12/2/94) was
worth $12,985.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year Inception Date
<S> <C> <C> <C>
Class A** (without sales load) 16.00% 18.95% 12/2/94
Class A (with sales load) 9.66% 13.28% 12/2/94
S&P 500*** 20.20% 28.40% 12/2/94
LBIGCB*** (8.80)% 9.20% 12/2/94
Class B** (without sales load) 15.37% 15.37% 10/1/95
Class B (with sales load) 10.28% 10.28% 10/1/95
Class C 15.49% 18.30% 12/2/94
</TABLE>
* Equity-Income Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**Equity-Income Portfolio Class A Shares performance reflects the maximum sales
charge of 5.5%. Equity-Income Portfolio Class B Shares reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing to
0% after 6 years).
*** The Standard & Poor's 500 Index and Lehman Brothers Intermediate
Government/Corporate Bond (LBIGCB) Index are unmanaged indices used as a general
measure of market performance. Calculations assume dividends and capital gains
are reinvested and do not include any managerial expenses.
From inception calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 6.9% 13.5%
Consumer Cyclical 8.3% 10.9%
Consumer Non-Cyclical 20.1% 18.2%
Energy 8.3% 8.6%
Financial 14.1% 9.3%
Independent 1.1% 3.4%
Industrial 18.2% 12.8%
Technology 8.5% 4.5%
Utilities 7.8% 0.9%
Long-term U.S. Gov't 4.8% 8.3%
Short-term 1.2% --
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Balanced Portfolio
The financial markets closed 1995 with one of the most exciting performances on
record. Though the new year has brought continued market highs, it has come with
more pronounced volatility. Throughout 1996, in fact, higher interest rates put
pressure on stocks. In the most recent quarter, for example, interest rates
reacted to fears of a runaway economy, with yield on the benchmark 30-year
Treasury bond bouncing between 6.69% and 7.19%. For the year ended September
30, 1996, we are pleased to report that the Balanced Portfolio outperformed its
benchmark indexes, the S&P 500 and the Lehman Brothers Long Government/Corporate
Bond Index. We invite you to review its corresponding Portfolio Performance
page for details.
In July, I became increasingly concerned about the strengthening economy. My
conversations with management at many of the companies we hold revealed that
business was strong, and even though inflationary pressures were absent, I was
afraid that ongoing economic strength might lead to an inflationary environment
down the road. I thus focused the Portfolio somewhat more conservatively by
selectively selling bonds in industries I believed might be vulnerable to rising
interest rates. The result of cash increasing a bit the third quarter was a
function of cutting some of these fixed-income positions.
The strong economy also roiled the equity markets, causing a 10% pullback (top
to bottom) in July alone. Stocks proved resilient, however, recovering in August
and setting new records in September.
I took advantage of the stock market's recent volatility to add to our position
in Wells Fargo, a long-time holding. The stock performed well, as did others in
the financial services sector, including Associates First Capital (formerly Ford
Motor Credit), and UNUM. UNUM's performance was driven by strong earnings,
resulting from continued growth in the disability insurance market. UNUM also
recently undertook a substantial share repurchase plan, which we believe could
amount to 5% of shares outstanding annually over the next three years. Share
repurchase is a recurring theme in the Balanced Portfolio because it is one of
the most efficient ways for a company to add value for shareholders.
Dionex is another company that is actively repurchasing stock. Dionex
manufactures ion chromatography systems used to identify chemical components
through color spectrum analysis. It dominates the industry with 70% market
share. A primary focus of my stock analysis is free cash flow, and I try to
uncover companies that use their discretionary cash wisely. Dionex fits this
model perfectly. The company does not pay a dividend or make unnecessary capital
expenditures, and with no strategic acquisitions on the horizon, all available
cash flow is used at present to buy back shares. This adds substantially to the
company's earnings per share growth.
Outsourcing is another theme in the Portfolio. I increased positions in Computer
Sciences Corp. and EDS; both companies should continue to benefit from the high
demand for information-processing outsourcing. The global information technology
market continues to grow at a 15% rate, with many multibillion dollar contracts
to be awarded over the next 12 months. EDS and Computer Sciences hold the number
one and number two market shares in this industry.
Campbell Soup and Barclays PLC each posted excellent returns during the period.
Barclays, the largest credit card issuer in the U.K. and one of the largest
asset managers in Europe, reported substantially improved earnings and continued
to aggressively repurchase its stock. Campbell, which has always generated
tremendous free cash flow, recently announced plans to expand its product lines
and restructure some of its operations. These moves should lower capital costs
and expenditures and increase cash flow even more.
I took profits in Consolidated Cigar Holdings and USCS International, a
communications software provider, both of which reached their price targets.
CoreStates Financial, a diversified financial services company, was sold at a
loss. Kellogg and General Motors H/Hughes Electronics were also disappointments
this quarter. I continue to hold positions in both companies, however, and am
optimistic about their prospects going forward. Kellogg should experience
increased volume growth as a result of price changes in the cereal marketplace,
and General Motors H stands to benefit from its rapidly growing DirecTV
subsidiary and the potential for a spinoff from General Motors.
Looking toward year end, I expect volatility to continue in the financial
markets. With the stock market at its current high levels, finding individual
stocks with great upside potential may be a bit more difficult. I have
confidence, however, in the names that presently make up the Portfolio. I will
continue to focus on uncovering stable companies with predictable earnings
growth and high free cash flows. These kind of stocks have greater potential, I
believe, to perform whatever the market environment.
/S/Blaine Rollins
-----------------
Blaine Rollins
Balanced Portfolio Manager
Balanced Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (12/2/94) was
worth $13,315.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year Inception Date
<S> <C> <C> <C>
Class A (without sales load) 22.12% 20.59% 12/2/94
Class A** (with sales load) 15.39% 14.84% 12/2/94
S&P 500*** 20.20% 28.40% 12/2/94
LBLGCB*** 3.30% 9.70% 12/2/94
Class B (without sales load) 21.38% 21.38% 10/1/95
Class B** (with sales load) 16.38% 16.38% 10/1/95
Class C 21.49% 19.92% 12/2/94
</TABLE>
* Balanced Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**Balanced Portfolio Class A Shares performance reflects the maximum sales
charge of 5.5%. Balanced Portfolio Class B Shares reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing to
0% after 6 years).
*** The Standard & Poor's 500 Index and Lehman Brothers Long
Government/Corporate Bond (LBLGCB) Index are unmanaged indices used as a general
measure of market performance. Calculations assume dividends and capital gains
are reinvested and do not include any managerial expenses.
From inception calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 0.3% 5.7%
Consumer Cyclical 11.8% 19.4%
Consumer Non-Cyclical 7.4% 13.7%
Financial 34.9% 23.0%
Independent - 0.7%
Industrial 10.8% 8.5%
Technology 12.0% 12.3%
Utilities 1.0% -
Long-term U.S. Gov't 12.3% 5.2%
Long-term Foreign Gov't 3.1% --
Short-term 6.6% 13.9%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Flexible Income Portfolio
We are pleased to report that for the year ended September 30, 1996, the
Flexible Income Portfolio outperformed its benchmark index, the Lehman Brothers
Long Government/Corporate Bond Index. We invite you to review its corresponding
Portfolio Performance page for details.
After an overly enthusiastic fourth quarter in 1995, bonds have reacted
negatively to numerous sources in 1996. Our flexible strategy was the key to
outperforming our benchmark overall. In the corporate and high-yield areas,
research and selectivity gave us a substantive advantage.
Through September, long rates have risen roughly 1.0% on the year. The
reacceleration of economic growth, which apparently peaked in the second
quarter, caused bond investors to bid up yields from 5.95% at the end of
December 1995 to 6.92% on September 30. At present, economic signals remain
mixed-inflation is low and durable goods orders have declined, but housing,
employment, and consumer confidence are still strong. We are also beginning to
see some signs of wage pressure, often a precursor to higher inflation.
This is not the whole picture, however. We are also seeing unprecedented signs
of deflation. Things like computer equipment and services, utilities, medical,
and telecommunications costs have declined dramatically. The deregulation of the
telecom industry via the Telecommunications Act of 1996 should bring further
price reductions in that important sector. All of this has led to a measure of
price stability that no doubt contributed to the Federal Reserve Board's double
pass (at both its August and September meetings) on a rate hike.
The U.S. Treasury portion of the Portfolio has remained basically unchanged,
with maturities averaging approximately ten years. Yields on intermediate-term
Treasury securities remain very competitive with yields on longer maturities (a
flat yield curve), and also carry less capital risk should rates head north
again.
The real opportunities this year have been in the corporate sector, especially
in high-yield bonds. Investment-grade holdings are weighted in banks that not
only have good earnings growth, but have developed an intelligent plan to profit
from the competitive changes, including consolidation, that currently
characterize the industry. Acquisitions are also benefiting the high-yield
sector. During the recent quarter, Center Bank was acquired by First Union.
Center Bank's bonds will now be backed by First Union's investment-grade credit
risk.
When it comes to lower quality bonds, acquisitions that involve credit upgrades
are, of course, the ultimate good news. They are not, however, something to
depend on. For a number of years now we have tried to uncover undervalued
highyield companies that can build their businesses and eventually move into the
investment-grade category on their own. We were early participants in this bond
sector and I like to think our efforts were ahead of the investment curve. Now,
this sector is more widely recognized, and these bonds even have an official
nickname: "crossover bonds".
These crossover bonds are right on the border between junk and investmentgrade-
the highest quality junk, in other words. The major buyers of crossovers are
typically the newest entrants into the high-yield market, most of whom are
unfamiliar with the special characteristics of the market and only want to put
their toe in the water via crossovers. This increased segmentation of the
highyield market indicates its growing sophistication.
Two examples of crossover bonds are El Paso Electric and U.S. Gypsum. Both, I
think, have the potential to reach investment-grade status. We have visited El
Paso's power plants and offices and are familiar with management. The same goes
for U.S. Gypsum, where management has done exactly what it had promised
shareholders.
During the period we initiated a small position in an issue from Consolidated
Cigar, which sells mid-priced cigars. Consolidated's inventory is sold out
through year end and its backlog is growing. The company provides an interesting
opportunity to capitalize on a growing social trend.
A sound economy continues to provide an excellent environment for high-yield
companies. And, a healthy stock market is providing liquidity, in that when a
company's balance sheet improves, it is able to turn to the equity market for
additional, less expensive financing. As long as these conditions persist, and
high-yield bonds do not get overpriced, our appetite for this kind of debt will
likely continue.
Finally, the market for convertibles and preferred securities has been strong
this year. We've done well in this area, but when prices get too far in front of
fundamentals, I've been quick to take profits, as I did with Dole Foods this
quarter.
Looking ahead, if economic signals remain mixed, we can probably expect interest
rates to maintain their current range. However, if the economy slows to 2%
growth, then we could see rates move lower in the fourth quarter.
/S/Ronald V. Speaker
--------------------
Ronald V. Speaker
Flexible Income Portfolio Manager
Flexible Income Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (6/29/87) was
worth $19,475.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year 5 year Inception Date
<S> <C> <C> <C> <C>
Class A (without sales load) 6.73% 9.02% 8.03% 6/29/87
Class A**(with sales load) 1.63% 7.97% 7.40% 6/29/87
LBLGCB*** 3.30% 7.40% 8.60% 6/29/87
Class B (without sales load) 5.94% - 5.94% 10/1/95
Class B**(with sales load) 0.94% - 0.94% 10/1/95
Class C 6.03% - 4.72% 10/1/93
</TABLE>
* Flexible Income Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**Flexible Income Portfolio Class A Shares performance reflects the maximum
sales charge of 4.75%. Flexible Income Portfolio Class B Shares reflects the
maximum applicable contingent deferred sales charge (5% in the first year,
decreasing to 0% after 6 years).
***The Lehman Brothers Long Government/Corporate Bond (LBLGCB) Index is an
unmanaged index used as a general measure of market performance. Calculations
assume dividends and capital gains are reinvested and do not include any
managerial expenses. From inception calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Consumer Cyclical 17.0% 22.8%
Consumer Non-Cyclical 6.5% 10.0%
Energy 2.9% 6.1%
Financial 38.8% 22.1%
Industrial 10.3% 9.4%
Technology 6.8% 12.9%
Utilities 2.8% --
Long-term U.S. Gov't 8.9% 12.6%
Short-term 4.4% --
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Income Plus Portfolio
High-yield bonds generally outperformed investment-grade bonds during the fiscal
year ended September 30, 1996. This was due primarily to a combination of
strong technical and fundamental conditions. Along with considerable crossover
interest from investment-grade buyers, mutual fund cash flows remained strong
throughout the period, while the economy remained resilient, providing a
positive backdrop for below-investment-grade bonds. Due to these factors, the
Income Plus Portfolio underperformed its benchmark index, the Merrill Lynch High
Yield Master Index for the year ended September 30, 1996. We invite you to
review its corresponding Portfolio Performance page for details. The continued
expectation of positive mutual fund cash flow and a moderately strong economy
should provide good support in the future for high-yield bonds.
The investment-grade sector experienced fairly significant interest rate
volatility over the past year, particularly during the first calendar quarter of
1996, while spreads tightened throughout the period. Investors had been
expecting a moderately slow growing economy, perhaps even a slowing economy,
leading them to believe the Federal Reserve would become more accommodating. The
economy turned out to be stronger than investors thought, however, and interest
rates rose 50 to 60 basis points in early 1996. Spreads continued to tighten
during the fiscal year as strong corporate cash flow led to a significantly
lower supply of new issue bonds. This low supply, along with strong investor
appetite, were the primary factors leading to the tightest investment-grade
spreads in many years.
An increase in interest rates and/or a deteriorating economy pose the key risks
to the Portfolio right now. Given that spread levels in both the high-yield and
investment-grade markets are at historically tight levels, economic
deterioration would set the stage for underperformance of those bonds with low
ratings in both markets. We feel confident addressing this risk, however, as the
Portfolio has historically not assumed inordinate amounts of credit risk.
The key determinate for interest rate risk appears to be inflation expectations.
Investors are nervous that an accelerating economy will re-ignite inflation,
especially wage-induced inflation. We prefer not to attempt a prediction of
this outcome, but to react to other variables that create bond price movement.
Currently, our duration in the Portfolio is below that of the blended index,
which should help mitigate any further rise in interest rates.
The outlook for fiscal 1997 remains moderately favorable for the Income Plus
Portfolio. Though conditions remain favorable for high-yield bonds, there will
be some challenges over the next fiscal year. A falling interest rate scenario
would imply a weakening economy, which perhaps would prove negative for
highyield bonds. Furthermore, given the tight level of spreads within all
markets, any economic weakness will not leave much margin for error. Conversely,
a rising interest rate scenario would prove negative for those bonds that are of
higher quality. We will continue to work diligently to guide the Portfolio
through any turbulent waters that may exist over the next fiscal year.
/S/David R. Halfpap
-------------------
David R. Halfpap
Income Plus Portfolio Manager
Income Plus Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (6/14/85) was
worth $29,735.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year 5 year 10 year Inception Date
<S> <C> <C> <C> <C> <C>
Class A (without sales load) 7.64% 9.79% 9.55% 10.60% 6/14/85
Class A**(with sales load) 2.49% 8.72% 9.01% 10.12% 6/14/85
MLHYM*** 10.40% 13.50% 11.40% 12.20% 6/14/85
Class B (without sales load) 6.95% - - 6.95% 10/1/95
Class B**(with sales load) 1.95% - - 1.95% 10/1/95
Class C 7.05% - - 5.55% 10/1/93
</TABLE>
* Income Plus Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**Income Plus Portfolio Class A Shares performance reflects the maximum sales
charge of 4.75%. Income Plus Portfolio Class B Shares reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing
to 0% after 6 years).
***The Merrill Lynch High Yield Master (MLHYM) Index is an unmanaged index used
as a general measure of market performance. Calculations assume dividends and
capital gains are reinvested and do not include any managerial expenses.
From inception calculation is based on life of Class A.
<TABLE>
<CAPTION>
Investments by major industry as a percentage of net assets
9/30/96 9/30/95
<S> <C> <C>
Basic Materials 3.9% 8.2%
Consumer Cyclical 25.0% 11.9%
Consumer Non-Cyclical 21.4% 23.3%
Energy 11.1% 11.0%
Financial 11.3% 5.5%
Industrial 15.0% 13.4%
Technology - 1.4%
Utilities 6.2% 7.8%
Short-term 3.6% 14.2%
</TABLE>
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
Tax-Exempt Portfolio
According to unadjusted figures released by the Federal Reserve Board,
individual ownership of municipal bonds has increased for the first time in more
than five years. Of the $1.3 trillion worth of bonds outstanding, individual
investors hold $465.8 billion, or roughly 35% of the market. Reasons for the
increase in sales to individuals include market yields climbing above 6% earlier
this year, reduced fears of dramatic tax reform, and baby boomers starting to
save for their retirement years by shifting money from stocks into taxadvantaged
investments. Indeed, the year was characterized by new issue investor demand
heavily outpacing new issue supply. Blue List inventory levels sunk below $900
million for the first time since late February 1993. This helped municipal bonds
outperform U.S. Treasuries for part of the year.
Yields on municipal bonds fluctuated throughout the year, making it difficult to
establish trend following positions. During the second quarter alone, tax-exempt
yields whipsawed between a low of 5.90% and a high of 6.20%. Despite all the
activity, the municipal market followed U.S. Treasuries and closed considerably
higher for the year. Yields on municipal bonds averaged 45 to 50 basis points
higher than were seen on September 30, 1995. For the year ended September 30,
1996, the Tax-Exempt Portfolio underperformed its index, the Lehman Brothers
Long Municipal Bond Index. We invite you to review the Portfolio Performance
page for details.
During the first half of 1996, credit quality for municipal bonds improved, with
upgrades outpacing downgrades. Standard & Poor's indicated that most strength
was in the general obligation, education, health care, and housing sectors.
Another statistic of interest was that over half of new municipal issues sold
during the first half of 1996 were insured, resulting in AAA ratings. While the
Tax-Exempt Portfolio has consistently invested in high-quality bonds, we took
particular advantage of these strengths and invested with credit strength and
quality in mind.
The near-term outlook for the Tax-Exempt Portfolio remains moderately favorable.
While recent strength on the economic front has concerned many investors, we do
not believe this recent economic data to be inflationary and expect the Federal
Reserve Board to hold steady for the balance of the year. Unless some unforseen
crisis occurs, I expect municipal bonds to continue to perform in their current
narrow range for the remainder of 1996.
/S/Rachel Dennis
----------------
Rachel Dennis
Tax-Exempt Portfolio Manager
Tax-Exempt Portfolio
A hypothetical $10,000 invested in Class A Shares at inception (4/1/85) was
worth $22,911.
Note: Performance of Class B and C Shares will be greater or less than the
performance shown in this chart for Class A Shares, based on the different loads
and fees paid by shareholders investing in the different classes.
<TABLE>
<CAPTION>
Average Annual Total Returns For the Period Ended 9/30/96*
From Inception
1 year 5 year 10 year Inception Date
<S> <C> <C> <C> <C> <C>
Class A (without sales load) 5.89% 6.02% 6.71% 7.93% 4/1/85
Class A**(with sales load) 0.82% 4.99% 6.19% 7.47% 4/1/85
LBLMB*** 6.00% 7.50% 7.90% 9.50% 4/1/85
Class B (without sales load) 5.21% - - 5.21% 10/1/95
Class B** (with sales load) 0.21% - - 0.21% 10/1/95
Class C 5.63% - - 4.06% 10/1/93
</TABLE>
* Tax-Exempt Portfolio performance includes dividends and capital gains
reinvested. Investment return and principal value will fluctuate; shares when
redeemed may be worth more or less than their original cost. Past performance
does not guarantee future results. Periods less than one year represent total
return and are not annualized.
**Tax-Exempt Portfolio Class A Shares performance reflects the maximum sales
charge of 4.75%. Tax-Exempt Portfolio Class B Shares reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing to
0% after 6 years).
*** The Lehman Brothers Long Municipal Bond (LBLMB) Index is an unmanaged
index used as a general measure of market performance. Calculations assume
dividends and capital gains are reinvested and do not include any managerial
expenses. From inception calculation is based on life of Class A.
This material must be preceded or accompanied by the Fund's current prospectus
which includes information about the sales commissions, objectives, policies and
other facts about the Fund.
September 30, 1996
SCHEDULE OF INVESTMENTS AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Shares Description Value
COMMON STOCK (92.0%)
Basic Materials (1.7%)
<S> <C> <C>
Aluminum (0.9%)
8,000 Titanium Metals Corp. * $232,000
Mining (0.8%)
4,400 Case Corp. 214,500
Consumer Cyclical (16.2%)
Airlines (0.4%)
1,600 Delta Air Lines, Inc. 115,200
Broadcasting (0.6%)
5,100 Evergreen Media Corp. Class A * 159,375
Clothing/Fabric (3.4%)
4,400 Cintas Corp. 246,400
5,300 Gucci Group N.V. # 384,250
4,400 Tommy Hilfiger Corp. * 260,700
891,350
Entertainment (1.9%)
18,000 International Game Technology 369,000
5,000 Mirage Resorts, Inc. * 128,125
497,125
Footwear (1.7%)
2,500 Nike, Inc. Class B 303,750
2,500 Nine West Group, Inc. * 135,625
439,375
Home Construction (1.2%)
14,450 Clayton Homes, Inc. 317,900
Recreation Products - Other (0.5%)
3,000 Oakley, Inc. * 127,500
Restaurants (1.3%)
8,200 Boston Chicken, Inc. * 289,050
2,400 Outback Steakhouse, Inc. * 57,900
346,950
Retailers - Apparel (0.6%)
5,500 Gap, Inc. 158,812
Retailers - Broadline (1.0%)
8,000 Dollar General Corp. 249,000
Retailers - Specialty (3.6%)
9,800 Home Depot, Inc. 557,375
26,700 OfficeMax Inc. * 373,800
931,175
Consumer Non-Cyclical (13.7%)
Consumer Services (5.0%)
6,500 CUC International, Inc. * 259,187
10,300 Loewen Group, Inc. 431,313
20,400 Service Corp. International 617,100
1,307,600
Healthcare (1.9%)
4,600 Columbia / HCA Healthcare Corp. 261,625
5,850 PhyCor, Inc. * 222,666
484,291
Household Products (0.5%)
1,500 Colgate-Palmolive Company $130,313
Medical Supplies (0.3%)
2,000 Target Therapeutics, Inc. * 85,500
Pharmaceuticals (6.0%)
3,000 Applied Analytical Industries, Inc. * 68,250
9,700 Astra AB A-Free # 408,612
6,000 Eli Lilly and Company 387,000
2,484 Johnson & Johnson 127,305
4,100 Merck & Company, Inc. 288,537
3,500 Pfizer, Inc. 276,937
1,556,641
Energy (3.6%)
Oilfield Equipment and Services
4,800 Halliburton Company 247,800
5,200 Schlumberger Ltd. 439,400
4,000 Smith International, Inc. * 140,500
3,000 Tidewater, Inc. 112,125
939,825
Financial (10.6%)
Banks (5.0%)
9,000 Chase Manhattan Corp. 721,125
4,300 Citicorp 389,687
5,600 MBNA Corp. 194,600
1,305,412
Diversified (2.0%)
20,000 The Money Store, Inc. 530,000
Insurance (2.5%)
6,500 American International Group, Inc. 654,875
Securities Brokers (0.5%)
5,000 Charles Schwab Corp. 115,625
Real Estate (0.6%)
4,000 Green Tree Financial Corp. 157,000
Industrial (6.2%)
Electronic Components and Equipment (0.7%)
4,500 Cable Design Technologies Corp. * 180,000
Diversified (2.6%)
18,800 Monsanto Company 686,200
Other Industrial Services (0.3%)
3,000 Delta & Pine Land Company 87,750
Pollution Control (2.6%)
10,000 U.S.A. Waste Services, Inc. * 315,000
10,000 United Waste Systems, Inc. * 347,500
662,500
Technology (39.1%)
Advanced Medical Devices (2.7%)
4,000 Guidant Corp. 221,000
4,000 Hologic, Inc. * 112,000
4,000 Medtronic, Inc. 256,500
4,500 VISX, Inc. * 121,500
711,000
Aerospace/Defense (6.0%)
5,300 Boeing Company $500,850
11,800 McDonnell Douglas Corp. 619,500
7,500 Sundstrand Corp. 292,500
7,700 Tracor, Inc. * 158,813
1,571,663
Biotechnology (1.8%)
3,800 Amgen, Inc. * 239,875
5,000 IDEXX Laboratories Inc. * ^ 226,250
466,125
Communications (8.9%)
4,100 Ascend Communications, Inc. * 271,113
2,600 Cascade Communications Corp. * 211,900
13,400 Cisco Systems, Inc. * 831,638
9,375 Glenayre Technologies, Inc. * 215,625
6,000 LCI International, Inc. * 189,000
3,000 QUALCOMM, Inc. * 127,500
3,500 Telecomunicacoes Brasileiras S.A. # 274,750
3,000 Tellabs, Inc. * 211,875
2,333,401
Computers (5.4%)
8,000 3Com Corp. * 480,500
6,700 Adaptec, Inc. * 402,000
2,600 Citrix Systems, Inc. * 133,250
6,200 Sun Microsystems, Inc. * 385,175
1,400,925
Diversified (3.0%)
9,592 First Data Corp. 782,947
Industrial Technology (0.6%)
5,000 Input/Output, Inc. * 148,750
Office Equipment (2.3%)
11,100 Xerox Corp. 595,238
Semiconductors (3.3%)
7,600 Intel Corp. $725,325
4,000 Maxim Integrated Products, Inc. * 141,500
866,825
Software (5.1%)
5,500 Compuware Corp. * 251,625
3,000 Electronic Data Systems Corp. 184,125
3,600 Electronics For Imaging, Inc. * 258,300
18,300 Informix Corp. * 510,113
2,900 Parametric Technology Corp. * 143,187
1,347,350
Utilities (0.9%)
Telephone
11,300 WorldCom, Inc. * 241,537
Total Common Stock (cost $20,228,099) 24,029,555
Principal Description Value
SHORT-TERM SECURITIES (9.8%)
$1,071,546 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $1,071,663 on 10-1-96 1,071,546
500,000 State Street Bank & Trust
Seven Seas Money Market Fund 500,000
1,000,000 DIC Americas Mitsubishi, Inc.
5.500%%, 10-7-96 999,083
Total Short-term Securities (cost $2,570,629) 2,570,629
Total Investments (101.8%) (cost $22,798,728) 26,600,184
Liablities in Excess of Other Assets (-1.8%) 471,711)
Net Assets (100.0%) $26,128,473
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
CAPITAL APPRECIATION PORTFOLIO
<TABLE>
Shares Description Value
COMMON STOCK (99.5%)
<S> <C> <C>
Basic Materials (2.2%)
Chemicals (0.1%)
1,050 Airgas, Inc. * $26,644
Mining (2.1%)
12,825 Minerals Technologies, Inc. 479,334
Consumer, Cyclical (38.4%)
Advertising (0.2%)
1,100 Lamar Advertising Company * 45,650
Auto Parts & Equipment (1.0%)
8,200 APS Holding Corp. - Class A * 238,825
Broadcasting (0.9%)
6,075 Univision Communications, Inc. * 203,513
Entertainment (2.0%)
15,975 Family Golf Centers, Inc. 463,275
Lodging (6.0%)
20,750 HFS, Inc. * 1,387,656
Recreation Products - Other (0.9%)
596 Fotolabo S.A. + 194,389
Restaurants (12.1%)
5,875 Lone Star Steakhouse & Saloon, Inc. * 178,820
13,362 Papa John's International, Inc. * 701,505
92,829 Pizza Express PLC + 692,579
73,619 J.D. Wetherspoon PLC + 1,210,325
2,783,229
Retailers - Broadline (0.6%)
7,600 Renters Choice, Inc. * 142,500
Retailers - Specialty (14.7%)
37,075 Fastenal Company 1,835,213
1,725 MSC Industrial Direct Company * 61,453
6,250 O'Reilly Automotive, Inc. * 215,625
36,825 Petco Animal Supplies, Inc. 1,003,481
12,475 Staples, Inc. * 276,784
3,392,556
Consumer, Non-Cyclical (15.4%)
Consumer Services (9.0%)
39,900 Coinmach Laundry Corp. * 832,913
18,800 CUC International, Inc. * 749,650
17,250 Profit Recovery Group International * 250,125
1,837 Grand Optical Photoservice S.A. + 242,974
2,075,662
Food-Other (0.5%)
4,775 JP Foodservice, Inc. * 113,406
Healthcare (4.3%)
15,900 Alternative Living Services, Inc. * 222,600
1,650 ARV Assisted Living, Inc. * 23,925
18,300 Karrington Health, Inc. * 237,900
5,375 Oxford Health Plans, Inc. * 267,406
2,775 Pacificare Health Systems, Inc. Class B * 240,038
991,869
Medical Supplies (1.0%)
9,875 Fresenius Medical Care # * $229,594
Pharmaceuticals (0.6%)
2,300 Omnicare, Inc. 70,150
6,437 TheraTech, Inc. * 65,979
136,129
Financial (5.3%)
Diversified (0.5%)
2,500 Associates First Capital Corp. 104,550
11,900 First USA Paymentech, Inc. * 22,344
126,894
Insurance (0.9%)
5,625 Protective Life Corp. 212,343
Real Estate (3.9%)
35,225 Insignia Financial Group, Inc. * 898,238
Industrial (12.7%)
Building Materials (1.3%)
4,325 Barnett, Inc. * 102,178
15,725 Dayton Superior Corp. * 194,597
296,775
Containers & Packaging (1.3%)
8,125 Sealed Air Corp. * 302,655
Electronic Components & Equipment (0.7%)
3,900 Littelfuse, Inc. 151,125
Pollution Control (5.7%)
5,200 Culligan Water Technologies, Inc. * 196,950
171,136 Rentokil Initial PLC + 1,120,048
1,316,998
Railroads (3.7%)
23,625 Wisconsin Central Transportation Corp. * 847,547
Technology (24.0%)
Communications (14.9%)
12,425 CommNet Cellular, Inc. * 358,772
10,025 Millicom International Cellular S.A. # * 404,759
23,825 Omnipoint Corp. * 693,903
63,725 Paging Network, Inc. * 1,274,500
950 Palmer Wireless, Inc. * 16,803
2,875 Premiere Technologies, Inc. * 66,125
22,793 PriCellular Corp. * 327,649
4,875 Telespectrum Worldwide, Inc. * 95,063
11,850 Western Wireless Corp. Class A * 201,450
3,439,024
Computers (0.3%)
2,175 Technology Solutions Company * 75,853
Diversified (0.6%)
7,725 DepoTech, Inc. * 133,256
Office Equipment (7.2%)
23,750 Global Directmail Corp. * 1,134,063
17,825 Viking Office Products, Inc. * 534,750
1,668,813
Software (1.0%)
5,050 Keane, Inc. $242,400
Utilities (1.5%)
Other Industrial Services
15,825 Trigen Energy Corp. 356,063
Total Common Stock (cost $19,658,118) 22,972,215
WARRANTS (0.2%)
Industrial
Electronic Components & Equipment
1,700 Littelfuse, Inc. (cost $35,782 ) 52,700
<CAPTION>
Principal Description Value
SHORT-TERM U.S. GOVERNMENT SECURITIES (0.4%)
<S> <C> <C>
$100,000 Treasury Bills
5.190%, 1-9-97 (cost $98,558) 98,558
COMMERCIAL PAPER (3.6%)
830,000 Household Finance Company
5.750% 10-1-96 (cost $830,000) 830,000
Total Investments (103.7%) (cost $20,622,458) 23,953,473
<CAPTION>
Notional
Amount Description Value
UNREALIZED LOSS ON FORWARD
FOREIGN CURRENCY CONTRACTS (-0.1%) @
<S> <C> <C> <C> <C>
B 150,000 British Pound 11-25-96 Sell $(8,153)
B 2,000 British Pound 12-4-96 Sell (45)
B 152,000 British Pound 12-11-96 Sell (1,712)
B 75,000 British Pound 1-16-97 Sell (238)
B 290,000 British Pound 1-24-97 Sell (3,720)
Total Unrealized Loss on Forward Foreign
Currency Contracts (13,868)
Liabilities in Excess of Other Assets (-3.6%) (835,272)
Net Assets (100.0%) $23,104,333
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
GLOBAL PORTFOLIO
<TABLE>
<CAPTION>
Shares Description Value
COMMON STOCK (92.9%)
<S> <C> <C>
Basic Materials (2.6%)
Chemicals (1.7%)
5,175 Cytec Industries, Inc. * $201,178
62,940 Hoechst AG + 2,295,631
2,496,809
Mining - Diversified (0.6%)
8,567 De Beers Centenary AG + 266,569
8,714 Potash Corp. of Saskatchewan, Inc. # 637,211
903,780
Precious Metals (0.2%)
8,211 Hoganas AB B-Free + 255,163
Steel (0.1%)
55,000 NKK Corp. + * 141,260
164 Ssab AB + 2,523
143,783
Consumer Cyclical (15.8%)
Airlines (0.7%)
1,141 Swissair AG + * 938,095
Auto Manufacturers (2.1%)
50,000 Honda Motor Company, Ltd. + 1,257,240
98,000 Isuzu Motors, Ltd. + 532,441
10,765 Mahindra & Mahindra, Ltd. # 106,358
86,814 Tata Engineering & Locomotive, Ltd. 144A # 1,098,197
2,994,236
Auto Parts & Equipment (0.3%)
12,680 Bajaj Auto, Ltd. # 403,858
Broadcasting (2.0%)
33,975 CanWest Global Communications Corp. 331,256
30,951 Central European Media Enterprises, Ltd.
Class A # * 913,054
38,975 Grupo Televisa S.A. # * 1,125,403
8,750 Heritage Media Corp. Class A * 165,156
25,120 Pearson PLC + 267,848
2,802,717
Clothing/Fabric (2.2%)
585 Fila Holding SpA # 56,233
26,825 Gucci Group N.V. # * 1,944,813
4,744 Wolford AG + 1,211,648
3,212,694
Consumer Electronics (0.5%)
2,075 Sony Corp. # 132,022
9,400 Sony Corp. + 593,435
725,457
Entertainment (1.0%)
431,426 Aristocrat Leisure, Ltd. + 1,211,849
3,212 London Clubs International PLC + 15,088
18,341 Tabcorp Holdings, Ltd. + 90,557
16,000 Yamaha Motor Company, Ltd. + 155,179
1,472,673
Footwear (1.8%)
28,990 Adidas AG + * 2,642,454
Home Furnishings - Other (0.4%)
17,325 AMRE, Inc. 240,384
7,325 Industrie Natuzzi SpA # 340,613
580,997
Lodging (0.2%)
9,400 East India Hotels, Ltd. # 180,950
6,119 Indian Hotels Company, Ltd. # * 137,678
318,628
Publishing (2.0%)
15,873 Emap PLC + $186,026
21,551 Wolters Kluwer N.V. + 2,712,934
2,898,960
Recreation Products - Other (0.4%)
18,140 Amer Group, Ltd. + 409,490
5,150 Oakley, Inc. * 218,875
628,365
Retailers - Broadline (0.7%)
16,000 Daimaru, Inc. + 106,039
23,000 Hankyu Department Stores + 287,100
11,000 Ito-Yokado Company, Ltd + 625,297
1,018,436
Retailers - Specialty (0.3%)
29,075 Sunglass Hut International, Inc. * 463,383
Toys (1.2%)
2,442 EMI Group PLC + 51,045
38,982 Mattel, Inc. 1,008,659
114,051 Thorn EMI PLC + 649,121
1,708,825
Consumer Non-Cyclical (19.3%)
Beverages (1.3%)
770,000 Companhia Cervejaria Brahma + 477,432
1,170 Heineken N.V. + 213,778
32,850 PepsiCo, Inc. 928,013
25,000 Quilmes Industrial S.A. # * 259,375
1,878,598
Consumer Services (0.6%)
19,800 Amway Japan, Ltd. + 860,599
Cosmetics (0.7%)
44,975 Grupo Casa Autrey S.A. # 1,006,316
Food Retailers (1.9%)
142,500 Blue Square Israel, Ltd. # * 2,101,875
15,325 Disco S.A. # * 300,753
14,500 Santa Isabel S.A. # 371,563
2,774,191
Food-Other (3.6%)
6,569 Cultor OY Series 1 + 338,326
19,163 Nutricia N.V. + 2,532,210
1,215,609 Parmalat Finanziaria SpA + 1,747,820
10,408 Raision Tehtaat OY + 627,290
5,245,646
Health Care (0.3%)
181,154 London International Group PLC + 435,390
Medical Supplies (0.9%)
66,165 Nobel Biocare AB + 1,247,652
Pharmaceuticals (8.7%)
1,835 Ciba-Geigy AG + 2,347,161
81,350 Eisai Company, Ltd. + 1,548,758
9,750 Eli Lilly and Company 628,875
19,360 Gehe AG + 1,294,941
51,980 Glaxo Wellcome PLC + 815,098
4,325 Pfizer, Inc. 342,216
273 Roche Holding AG + 2,010,490
2,005 Sandoz AG + 2,407,919
28,098 SmithKline Beecham # 343,377
2,225 SmithKline Beecham + 135,447
36,000 Takeda Chemical Industries, Ltd. + 659,512
12,533,794
Tobacco (1.3%)
188,500 PT Hanjaya Mandala Sampoerna + $1,834,037
Financial (10.2%)
Banks (6.5%)
7,500 Bangkok Bank Company, Ltd. + 97,943
85,459 Barclays PLC + 1,256,452
13,600 Citicorp 1,232,500
22,609 CS Holding AG + 2,235,659
39,710 Deutsche Bank AG + 1,868,384
19,100 HSBC Holdings PLC + 354,436
96,027 Lloyds TSB Group PLC + 568,339
7,000 Mitsui Trust & Banking Company + 74,177
21,734 Nordbanken AB + 557,370
11,013 Sparbanken Sverige AB + 159,490
9,000 Sumitomo Trust & Banking
Company, Ltd. + * 113,151
3,158 Wells Fargo & Company 821,080
9,338,981
Diversified (2.5%)
65,500 Credit Saison Company, Ltd. + 1,570,518
1,000 First Data Corp. 81,625
11,000 First Pacific Company, Ltd. + 16,643
395,925 Grupo Financiero Inbursa S.A. Class B + * 1,543,383
43,161 Investment Bure AB + 413,447
3,625,616
Insurance (0.3%)
68,917 Invercorporacion S.A. + * 9,229
455 Schweizeriche Rueckversicherungs
Gesellschaft + 479,673
488,902
Real Estate (0.9%)
123,000 Citic Pacific, Ltd. + 556,705
40,000 Mitsubishi Estate Company, Ltd. + 549,594
14,000 Mitsui Fudosan Company, Ltd. + 186,066
1,292,365
U.S. Government Agency (0.0%)
575 Federal National Mortgage Association 20,053
Independent (2.7%)
Conglomerates
9,670 Barco N.V. + 1,595,522
68,917 Groupo Carso, S.A. de C.V. + 317,080
77,981 Kinnevik Investments AB B-Free + 2,035,121
3,947,723
Industrial (19.1%)
Building Materials (1.0%)
228,500 Fortune Cement Corp. + * 119,759
3,413,000 Hi Cement Corp. + * 1,144,822
2,442 Hunter Douglas N.V. + 170,624
1,435,205
Diversified (1.1%)
121,000 Mitsubishi Heavy Industries, Ltd. + 985,560
4,079 OEMV AG + 410,600
1,812 Sophus Berendsen A/S + 216,414
1,612,574
Electronic Components & Equipment (0.5%)
18,100 UCAR International, Inc. * 733,050
Factory Equipment (1.7%)
5,945 SGL Carbon AG + 693,931
2,422 Sulzer AG + 1,423,456
21,084 Valmet Corp. OY + 347,950
2,465,337
Heavy Construction (0.5%)
123,000 Kawasaki Heavy Industries, Ltd. + $593,157
25,600 New World Infrastructure + * 60,582
653,739
Heavy Machinery (0.2%)
12,093 The Rauma Group OY + 250,458
Other Industrial Services (14.1%)
3,168 Adecco S.A.+ 871,579
150,740 Assa Abloy AB + 2,148,897
225,000 Cheung Kong Holdings, Ltd. + * 370,975
425,462 Hays PLC + 3,130,985
11,800 John H. Harland Company 354,000
118,260 Kesko OY + 1,902,403
2,372 Prosegur CIA de Segundad S.A. + 95,087
4,594 Randstad Holdings N.V. + 362,621
1,084,477 Rentokil Group PLC + 7,097,723
164,249 Securitas AB + 3,964,404
20,298,674
Railroads (0.0%)
1,400 Tranz Rail Holdings, Ltd. # 20,300
Technology (22.1%)
Advanced Medical Devices (0.3%)
26,217 Getinge Industrier AB Class B + 502,275
Biotechnology (0.1%)
4,850 Qiagen N.V. + 143,075
Communications (6.7%)
6,800 Airtouch Communications, Inc. * 187,850
16,700 Asia Satellite Telecom SpA # * 448,813
38,339 Korea Mobile Telecom Corp. # 579,877
95,006 Lagardere Groupe S.A. + 2,345,804
26,750 MFS Communications
Company, Inc. * 1,166,969
60,550 Millicom International Cellular S.A. # * 2,444,706
8,025 Paging Network, Inc. * 160,500
19,300 Portugal Telecom S.A. # 496,483
450 Telecom Argentina France S.A. # 18,169
5,174 Telecomunicacoes Brasileiras S.A. + 409
16,900 Telecomunicacoes Braseleiras # 1,334,892
20,325 Telefonica de Argentina S.A. # 505,584
9,690,056
Computers (3.9%)
6,500 Computer Sciences Corp. * 499,688
10,925 Dassault Systems S.A. # 457,484
25,656 Enator AB + * 565,063
31,480 Frontec AB Class B + * 370,412
21,033 Macronix International Company,
Ltd. SpA # * 255,025
158,449 Misys PLC + 2,157,156
19,804 WM Data AB Class B + 1,266,700
5,571,528
Consumer Services (0.5%)
3,120 Grand Optical Photoservice S.A. + 412,673
22,176 Merkantildata A/S + 327,598
740,271
Diversified (0.9%)
16,578 Philips Electronics N.V. + 599,030
19,425 Philips Electronics N.V. # 696,872
1,295,902
Industrial (0.0%)
3,400 Pfeiffer Vacuum Technology SpA # * 52,275
Office Equipment (3.6%)
39,475 Alco Standard Corp. $1,968,816
51,700 Danka Business Systems PLC # 2,055,075
10,393 Oce-van der Grinten N.V. + 1,135,737
5,159,628
Software (6.1%)
18,100 Electronic Data Systems Corp. 1,110,888
130,028 Getronics N.V. + 3,299,547
14,851 Group Axime + * 1,484,007
81,374 JBA Holdings PLC + 649,798
640 NTT Data Communications Systems
Corp. + 1,988,595
5,625 SunGard Data Systems, Inc. * 253,125
8,785,960
Utilities (1.1%)
Telephone
51,825 Telefonica del Peru S.A. + 1,185,496
108,592 Telecom Italia Mobile SpA + 240,975
90,650 Telecom Italia SpA + 201,458
1,627,929
Total Common Stock (cost $110,863,168) 134,177,412
NON-CONVERTIBLE PREFERRED STOCK (3.0%)
Consumer, Cyclical (0.5%)
Clothing/Fabric (0.1%)
704 Escada AG + 99,257
Publishing (0.4%)
136,869 News Corp., Ltd + 586,973
Consumer, Non-Cyclical (0.3%)
Cosmetics
614 Wella AG + 370,828
Technology (2.0%)
Advanced Medical Devices (0.9%)
7,279 Fresenius AG + 1,342,244
Software (1.1%)
9,143 SAP AG Vorzug + 1,534,875
Utilities (0.2%)
Electric
10,803,000 Companhia Energetica
de Minas Gerais S.A. + 322,746
Total Non-Convertible Preferred Stock (cost $3,009,800) 4,256,923
<CAPTION>
Principal Description Value
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT SECURITIES (0.3%)
Treasury Bills
$100,000 5.115% 10-3-96 $99,972
350,000 5.120% 10-3-96 349,900
Total Short-Term U.S. Government (cost $449,872) 449,872
COMMERCIAL PAPER (3.0%)
4,400,000 Household Finance Company
5.750% 10-1-96 (cost $4,400,000) 4,400,000
SHORT-TERM SECURITIES (0.1%)
72,736 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $72,744 on 10-1-96 (cost $72,736) 72,736
Total Investments (99.3%) (cost $118,795,576) 143,356,943
<CAPTION>
Notional
Amount Description Value
UNREALIZED GAIN (LOSS) ON FORWARD
FOREIGN CURRENCY CONTRACTS (0.2%)@
<S> <C> <C> <C> <C>
B 2,100,000 British Pound 11-19-96 Sell (117,985)
B 175,000 British Pound 1-16-97 Sell (557)
D 250,000 German Deutschemark 12-11-96 Sell 408
D 4,000,000 German Deutschemark 1-17-97 Sell 26,480
D 5,287,000 German Deutschemark 1-24-97 Sell 113,478
F 2,300,000 French Franc 12-12-96 Sell 1,139
G 86,304 Dutch Guilder 10-1-96 Sell 18
G 196,481 Dutch Guilder 10-2-96 Sell 20
I 65,134,209 Indonesian Rupiah 10-1-96 Sell 10
I 45,121,377 Indonesian Rupiah 10-2-96 Sell 11
J 200,000,000 Japanese Yen 10-1-96 Sell 118,411
J 200,000,000 Japanese Yen 10-1-96 Buy (45,779)
J 50,000,000 Japanese Yen 12-11-96 Sell 14,332
J 285,000,000 Japanese Yen 12-12-96 Sell 41,420
J 210,000,000 Japanese Yen 12-17-96 Sell 18,255
J 110,000,000 Japanese Yen 1-16-97 Sell 5,593
J 161,000,000 Japanese Yen 1-17-97 Sell 47,012
K 37,900,000 Swedish Krona 1-27-97 Sell 45,326
M 83,905 Finnish Markka 10-1-96 Sell (48)
M 117,523 Finnish Markka 10-2-96 Sell (1)
M 1,903,000 Finnish Markka 11-12-96 Sell (18,479)
M 1,050,000 Finnish Markka 11-12-96 Buy 6,492
S 2,018,000 Swiss Franc 11-12-96 Sell 38,667
S 2,500,000 Swiss Franc 1-16-97 Sell 1,189
Total Unrealized Gain on Forward Foreign
Currency Contracts 295,412
Other Assets in Excess of Liabilities (0.5%) 775,492
Net Assets (100.0%) $144,427,847
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (79.6%)
Consumer, Cyclical (9.3%)
Clothing/Fabric (3.7%)
104,200 Fila Holding SpA # $10,016,225
453,100 Gucci Group N.V. # 32,849,750
42,865,975
Entertainment (0.7%)
133,375 Walt Disney Company 8,452,641
Footwear (3.5%)
338,075 Nike, Inc. Class B 41,076,112
Lodging (1.4%)
248,875 HFS, Inc. * 16,643,516
Consumer, Non-Cyclical (17.6%)
Beverages (4.7%)
744,750 Coca-Cola Company 37,889,156
585,050 Pepsico, Inc. 16,527,663
54,416,819
Food - Retailers (0.5%)
192,300 Starbucks Corp. * 6,345,900
Health Care (4.2%)
618,600 Oxford Health Plans, Inc. * 30,775,350
213,125 Pacificare Health Systems, Inc. Class B * 18,435,313
49,210,663
Pharmaceuticals (8.2%)
203,416 Astra AB A-Free + 8,592,082
212,400 Eli Lilly and Company 13,699,800
298,600 Johnson & Johnson 15,303,250
456,950 Pfizer, Inc. 36,156,169
348,250 SmithKline Beecham PLC # 21,199,719
43,631 SmithKline Beecham PLC Class A + 533,200
95,484,220
Financial (16.1%)
Banks (6.9%)
255,875 Chase Manhattan Corp. 20,501,984
315,020 Citicorp 28,548,688
121,683 Wells Fargo & Company 31,637,580
80,688,252
Diversified (4.7%)
638,700 First Data Corp. 52,133,888
619,875 Grupo Financiero Inbursa S.A. Class B + * 2,416,378
54,550,266
Insurance (0.4%)
64,625 Aetna, Inc. 4,547,984
Securities Brokers (2.1%)
372,800 Merrill Lynch & Company, Inc. 24,465,000
U.S. Government Agency (2.0%)
105,875 Federal Home Loan Mortgage Corp. 10,362,516
380,180 Federal National Mortgage Association 13,258,777
23,621,293
Independent (1.6%)
Conglomerates
199,000 General Electric Company 18,109,000
Technology (34.7%)
Advanced Medical Devices (1.0%)
186,050 Medtronic, Inc. $11,930,456
Aerospace/Defense (1.2%)
143,350 Boeing Company 13,546,575
Biotechnology (2.0%)
198,225 Amgen, Inc. * 12,512,953
550,600 Chiron Corp. * 10,461,400
1,593 U.S. Bioscience, Inc. * 20,709
22,995,062
Communications (9.4%)
510,250 Ascend Communications, Inc. * 33,740,281
444,860 Glenayre Technologies, Inc. * 10,231,780
333,575 MFS Communications Company, Inc. * 14,552,209
432,400 PictureTel Corp. * 15,242,100
262,525 Premisys Communications Inc. * 9,647,794
89,275 QUALCOMM, Inc. 3,794,188
348,500 US Robotics Corp. 22,521,813
109,730,165
Computers (8.3%)
1,127,150 Cisco Systems, Inc. * 69,953,747
132,675 Shiva Corp. * 7,612,228
320,075 Sun Microsystems, Inc. * 19,884,659
97,450,634
Software (12.8%)
642,400 HBO & Company 42,880,200
65,400 HNC Software, Inc. * 2,616,000
496,325 Informix Corp. * 13,835,059
275,950 Intuit, Inc. * 8,692,425
275,275 Microsoft Corp. * 36,301,891
237,925 Netscape Communications Corp. * 11,033,772
292,000 PeopleSoft, Inc. * 24,309,000
192,925 Xylan Corp. * 10,466,181
150,134,528
Utilities (0.3%)
Telephone
159,125 Telefonica del Peru S.A. + 3,639,984
Total Common Stock (cost $598,900,361) 929,905,045
NON-CONVERTIBLE PREFERRED STOCK (3.4%)
Technology
Software
233,927 SAP AG Vorzug + (cost $13,737,830) 39,270,345
<CAPTION>
Principal Description Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (1.0%)
Financial
Diversified
$12,000,000 Trump Atlantic City Associates
Funding, Inc.
11.250% 5-1-06 (cost $12,000,000 ) 11,850,000
LONG-TERM U.S. GOVERNMENT SECURITIES (1.4%)
17,000,000 Treasury Notes
5.500% 9-30-97 (cost $17,058,705) 16,955,800
SHORT-TERM U.S. GOVERNMENT AGENCIES (6.0%)
Federal National Mortgage Association Corp.
$15,000,000 5.280% 10-10-96 $14,980,200
25,000,000 5.200% 11-20-96 24,819,444
30,000,000 5.380% 12-6-96 29,704,100
Total Short-Term U.S. Government Agencies (cost $69,503,744) 69,503,744
COMMERCIAL PAPER (9.0%)
40,000,000 General Electric Capital Corp.
5.410% 10-1-96 40,000,000
30,000,000 Household Finance Corp.
5.360% 10-1-96 30,000,000
35,700,000 Prudential Funding Corp.
5.720% 10-1-96 35,700,000
Total Commercial Paper (cost $105,700,000) 105,700,000
SHORT-TERM SECURITIES (0.0%)
$64,695 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $64,702 on 10-1-96 (cost $64,695) $64,695
Total Investments (100.4%) (cost $816,965,335) 1,173,249,629
<CAPTION>
Notional
Amount Description Value
UNREALIZED GAIN ON FORWARD FOREIGN
CURRENCY CONTRACTS (0.0%) @
<S> <C> <C> <C> <C>
D 20,000,000 German Deutschemark 12-11-96 Sell $41,404
D 21,646,000 German Deutschemark 1-17-97 Sell 364,548
D 2,000,000 German Deutschemark 1-27-97 Sell 36,590
Total Unrealized Gain on Forward Foreign
Currency Contracts 442,542
Liabilities in Excess of Other Assets (-0.4%) (4,919,983)
Net Assets (100.0%) $1,168,772,188
</TABLE>
September 30, 1996
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS
C.A.S.E. PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (67.1%)
Basic Materials (3.4%) Building Materials (1.7%)
1,000 Carlisle Companies, Inc. $55,500
Steel (1.7%)
4,300 Steel Technologies, Inc. 53,750
Consumer, Cyclical (11.7%)
Auto Manufacturing (1.8%)
2,900 Walbro Corp. 55,100
Retailers - Apparel (2.4%)
2,500 Gymboree Corp. * 75,937
Retailers - Broadline (2.5%)
3,900 Price / Costco, Inc. * 79,950
Retailers - Specialty (5.0%)
1,500 Deere And Company 63,000
3,600 The Sports Authority, Inc. * 95,850
158,850
Consumer, Non-Cyclical (14.5%)
Beverages (3.7%)
1,400 Anheuser-Busch Companies, Inc. 52,675
1,400 Coca-Cola Enterprises, Inc. 63,350
116,025
Food Retailers (5.7%)
4,400 Chiquita Brands International, Inc. 53,900
1,400 Dole Food Company 58,800
1,900 Interstate Bakeries Corp. 69,350
182,050
Healthcare (1.7%)
2,500 Tenet Healthcare Corp. * 55,625
Pharmaceuticals (3.4%)
1,000 Johnson & Johnson 51,250
800 Merck And Company, Inc. 56,300
107,550
Financial (7.1%)
Banks (3.6%)
3,100 City National Corp. 56,188
1,700 MBNA Corp. 59,075
115,263
Insurance (1.9%)
1,200 Travelers Group, Inc. 58,950
Securities Brokers (1.6%)
800 Merrill Lynch & Company, Inc. 52,500
Independent (3.1%)
Conglomerates
3,700 U.S. Industries, Inc. * 97,125
Industrial (9.1%)
Air Freight (1.6%)
2,300 Airborne Freight Corp. $49,162
Other Industrial Services (5.8%)
1,800 CalEnergy Company, Inc. * 57,375
3,750 U.S. Filter Corp. * 127,969
185,344
Paper Products (1.7%)
1,900 Mosinee Paper Corp. 52,725
Technology (8.8%)
Aerospace/Defense (1.8%)
700 Northrop Grumman Corp. 56,175
Computers (2.3%)
1,200 Computer Associates International, Inc. 71,700
Industrial Technology (4.7%)
2,100 Fisher Scientific International, Inc. 86,625
2,000 Wyle Electronics, Inc. 64,250
150,875
Utilities (9.4%)
Gas (1.7%)
3,600 Southwestern Energy Company 53,550
Telephone (5.9%)
1,400 Ameritech Corp. 73,675
1,700 BellSouth Corp. 62,900
2,400 WorldCom Inc. * 51,300
187,875
Water (1.8%)
1,500 Eastern Enterprises, Inc. 56,625
Total Common Stock (cost $2,025,459) 2,128,206
<CAPTION>
Principal Description Value
<S> <C> <C>
SHORT-TERM SECURITIES (25.7%)
$112,996 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $113,008 on 10-1-96 112,996
300,000 State Street Bank & Trust
Seven Seas Money Market Fund 300,000
400,000 State Street Bank & Trust
Euro Time Deposit,
4.500% 10-7-96 400,000
Total Short-term Securities (cost $812,996) 812,996
Total Investments (92.8%) (cost $2,838,455) 2,941,202
Other Assets in Excess of Liabilities (7.2%) 227,181
Net Assets (100.0%) $3,168,383
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (54.1%)
Basic Materials (10.8%)
Aluminum(2.8%)
8,000 Alumax, Inc. * $268,000
3,500 Aluminum Company of America 206,500
474,500
Chemicals (3.5%)
4,000 Dow Chemical Company 321,000
9,000 Georgia Gulf Corp. 268,875
589,875
Mining (1.7%)
4,000 Potash Corp. of Saskatchewan, Inc. # 292,500
Paper Products (2.0%)
8,000 International Paper Company 340,000
Steel (0.8%)
9,000 Birmingham Steel Corp. 142,875
Consumer, Cyclical (13.1%)
Apparel (1.1%)
6,000 Russell Corp. 193,500
Auto Manufacturers (2.8%)
10,000 Chrysler Corp. 286,250
6,000 Ford Motor Company 187,500
473,750
Footwear (1.1%)
5,320 Payless ShoeSource, Inc. * 178,885
Home Construction (1.6%)
12,000 Clayton Homes, Inc. 264,000
Restaurants (1.6%)
12,000 Cracker Barrel Old Country Store, Inc. * 271,500
Retailers - Broadline (1.4%)
5,000 May Department Stores Company 243,125
Retailers - Specialty (3.5%)
12,000 Fingerhut Companies, Inc. 159,000
15,000 Toys R Us, Inc. * 436,875
595,875
Consumer, Non-Cyclical (2.7%)
Pharmaceuticals (1.6%)
1,500 McKesson Corp. 71,063
4,000 R.P. Scherer Corp. * 195,000
266,063
Tobacco (1.1%)
6,000 UST, Inc. 177,750
Energy (2.4%)
Oil Companies - Major (0.8%)
3,000 Burlington Resources, Inc. 133,124
Oil Companies - Secondary (1.6%)
12,000 Valero Energy Corp. 262,500
Financial (11.3%)
Diversified (2.3%)
2,000 Associates First Capital Corp. $82,000
12,000 Countrywide Credit Industries, Inc. 307,500
389,500
Insurance (4.8%)
7,000 AFLAC, Inc. 248,500
4,000 AMBAC, Inc. 223,000
1,500 MGIC Investment Corp. 101,062
4,500 PMI Group, Inc. 239,063
811,625
Securities Brokers (1.4%)
9,000 Lehman Brothers Holding, Inc. 229,500
U.S. Government Agency (2.8%)
2,000 Federal Home Loan Mortgage Corp. 195,750
8,000 Federal National Mortgage Association 279,000
474,750
Independent (1.6%)
Conglomerates
3,000 Philip Morris Companies, Inc. 269,250
Industrial (4.2%)
Diversified (2.4%)
25,000 Horsham Corp. 406,250
Electronic Components & Equipment (1.8%)
7,000 Arrow Electronics, Inc. 311,500
Technology (8.0%)
Communication (2.9%)
4,500 Seagate Technology * 251,438
6,000 Sprint Corp. 233,250
484,688
Diversified (1.7%)
8,000 Philips Electronics N.V. # * 287,000
Semiconductors (2.2%)
10,000 Applied Materials, Inc. * 276,250
2,000 Avnet, Inc. 97,000
373,250
Software (1.2%)
19,000 Novell, Inc. * 209,000
Total Common Stock (cost $8,620,204) 9,146,135
CONVERTIBLE PREFERRED STOCK (1.3%)
Industrial
Diversified
4,500 Kmart Financing, Inc.
(cost $225,000) 219,937
<CAPTION>
Principal Description Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (5.9%)
Financial
Diversified
$1,000,000 Ford Motor Credit
6.170% 11-9-98 (cost $1,002,485) 1,001,393
LONG-TERM U.S. GOVERNMENT AGENCIES (1.8%)
Federal Home Loan Bank
$100,000 6.080% 9-8-98 $99,779
100,000 8.600% 8-25-99 105,718
100,000 7.880% 2-9-00 104,050
Total Long-Term U.S. Government Agencies (cost $316,572) 309,547
LONG-TERM U.S. GOVERNMENT SECURITIES (18.2%)
Treasury Notes
100,000 6.125% 12-31-96 100,223
500,000 5.500% 7-31-97 499,065
500,000 5.250% 7-31-98 492,855
500,000 7.125% 10-15-98 509,760
500,000 5.875% 3-31-99 496,280
500,000 6.000% 10-15-99 496,430
500,000 5.500% 4-15-00 486,390
Total Long-Term U.S. Government Securities (cost $3,107,362) 3,081,003
SHORT-TERM U.S. GOVERNMENT AGENCIES (0.4%)
60,000 Federal Farm Credit Banks
5.210% 10-7-96 (cost $59,948) 59,948
COMMERCIAL PAPER (16.4%)
$250,000 BTM Capital Corp.
5.420% 10-3-96 $249,925
150,000 Credit Card Securitization
5.400% 10-15-96 149,685
200,000 Hartz 667
5.430% 10-9-96 199,759
Industrial Funding Corp.
750,000 5.420% 10-1-96 750,000
650,000 5.430% 10-3-96 649,804
100,000 5.420% 10-9-96 99,879
240,000 Midamerican Energy Company
5.370% 10-7-96 239,785
200,000 Receivables Capital Corp.
5.380% 10-1-96 200,000
225,000 Reliastar Mortgage Corp.
5.370% 10-4-96 224,899
Total Commercial Paper (cost $2,763,736) 2,763,736
SHORT-TERM SECURITIES (0.3%)
41,535 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $41,540 on 10-1-96 (cost $41,535) 41,535
Total Investments (98.4%) (cost $16,136,842) 16,623,234
Other Assets in Excess of Liabilities (1.6%) 266,757
Net Assets (100.0%) $16,889,991
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
EQUITY-INCOME PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (69.5%)
Basic Materials (6.9%)
Chemicals
1,900 E.I. Du Pont de Nemours
and Company $167,675
7,250M.A. Hanna Company 165,844
15,400 Lawter International, Inc. 175,175
6,500 Morton International, Inc. 258,375
4,100 Nalco Chemical Company 148,625
1,000 Olin Corp. 84,000
999,694
Consumer Cyclical (6.2%)
Auto Parts & Equipment (0.5%)
3,000 Stewart & Stevenson Services, Inc. 64,875
Clothing/Fabric (0.6%)
5,000 Intimate Brands, Inc. Class A 91,250
Entertainment (1.7%)
2,000 Eastman Kodak Company 157,000
1,500 Walt Disney Company 95,063
252,063
Publishing (0.8%)
3,300 A.H. Belo Corp. 113,850
Retailers - Broadline (1.3%)
3,500 J.C. Penney Company, Inc. 189,437
Retailers - Specialty (1.3%)
3,400 Home Depot, Inc. 193,375
Consumer Non-Cyclical (17.7%)
Beverages (1.3%)
6,600 PepsiCo, Inc. 186,450
Consumer Services (0.7%)
3,000 Storage USA, Inc. 99,750
Cosmetics (1.2%)
3,900 Estee Lauder Companies, Inc. Class A 175,013
Food-Other (1.2%)
5,100 H.J. Heinz Company 172,125
Healthcare (1.7%)
3,000 Columbia / HCA Healthcare Corp. 170,625
5,500 Hooper Holmes, Inc. 83,187
253,812
Household Products - Non-Durable (5.0%)
2,000 Colgate-Palmolive Company 173,750
1,700 Duracell International, Inc. 109,013
1,500 Procter & Gamble Company 146,250
6,000 Tupperware Corp. 294,000
723,013
Medical Supplies (2.3%)
5,000 C.R. Bard, Inc. 155,625
4,000 Baxter International, Inc. 187,000
342,625
Pharmaceuticals (3.3%)
3,000 Johnson & Johnson $153,750
4,310 Pharmacia & Upjohn, Inc. 177,787
2,400 Schering Plough Corp. 147,600
479,137
Tobacco (1.0%)
5,000 UST, Inc. 148,125
Energy (6.2%)
Oil Companies - Major (4.9%)
2,000 Amoco Corp. 141,000
1,200 Atlantic Richfield Company 153,000
2,000 Exxon Corp. 166,500
1,200 Mobil Corp. 138,900
4,300 Union Pacific Resources Group, Inc. 120,400
719,800
Oil Companies - Secondary (1.0%)
5,000 Baker Hughes, Inc. 151,875
Pipelines (0.3%)
1,100 PanEnergy Corp. 38,087
Financial (10.3%)
Banks (2.6%)
2,700 Mellon Bank Corp. 159,975
14,000 First Colorado Bancorp, Inc. 217,000
376,975
Diversified (2.7%)
5,000 Associates First Capital Corp. Class A 205,000
2,000 Marsh & McLennan Companies, Inc. 194,250
399,250
Insurance (1.0%)
1,500 American International Group, Inc. 151,125
U.S. Government Agency (1.3%)
5,300 Federal National Mortgage Association 184,837
Real Estate (2.7%)
3,400 Crescent Real Estate Equities, Inc. 139,825
6,000 Starwood Lodging Trust 251,250
391,075
Independent (1.1%)
Conglomerates
1,700 General Electric Company 154,700
Industrial (13.3%)
Building Materials (2.1%)
4,500 Masco Corp. 135,000
3,600 Sherwin Williams Company 166,950
301,950
Diversified (5.0%)
5,000 Corning, Inc. 195,000
6,500 Keystone International, Inc. 127,563
4,200 Tyco International Ltd. 181,125
11,700 Westinghouse Electric Corp. 217,913
721,601
Electronic Components & Equipment (1.3%)
2,900 AMP, Inc. 112,375
900 Emerson Electric Company 81,113
193,488
Other Industrial Services (3.4%)
5,500 Manpower, Inc. $182,875
4,800 National Service Industries, Inc. 168,000
6,050 Olsten Corp. 150,494
501,369
Pollution Control (1.5%)
6,500 WMX Technologies, Inc. 213,687
Technology (5.8%)
Computers (1.1%)
3,400 Hewlett-Packard Company 165,750
Diversified (1.4%)
1,500 DST Systems, Inc. * 48,000
2,900 Raytheon Company 161,312
209,312
Industrial Technology (1.3%)
4,500 Fisher Scientific International, Inc. 185,625
Office Equipment (0.7%)
2,500 Danka Business Systems PLC # 99,375
Software (1.3%)
3,000 Electronic Data Systems Corp. 184,125
Utilities (2.0%)
Telephone
5,100 AirTouch Communications, Inc. * 140,887
5,600 ALLTEL Corp. 156,100
296,987
Total Common Stock (cost $8,973,838) 10,125,587
CONVERTIBLE PREFERRED STOCK (1.2%)
Utilities
Electric
3,000 CalEnergy Company, Inc. *
(cost $150,000) 178,500
<CAPTION>
PrincipalDescription Value
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS (3.6%)
Consumer Cyclical (0.7%) Retailers - Specialty
$100,000 Home Depot, Inc.
3.250% 10-1-01 101,625
Consumer Non-Cyclical (0.6%)
Healthcare
100,000 Quantum Health Resources, Inc.
4.750% 10-1-00 91,375
Energy (1.4%)
Oil Drilling
200,000 Nabors Industries, Inc.
5.000% 5-15-06 201,250
Utilities (0.9%)
Electric
150,000 Potomac Electric Power Company
5.000% 9-1-02 135,000
Total Convertible Corporate Bonds (cost $529,261) 529,250
NON-CONVERTIBLE CORPORATE BONDS (19.0%)
Consumer Cyclical (1.4%)
Entertainment (0.7%)
$100,000 Walt Disney Company 7.750% (until 1997,
increasing thereafter), 10-05-09 $101,261
Retailers - Broadline (0.7%)
100,000 May Department Stores Company
9.125% 12-01-16 105,000
Consumer Non-Cyclical (1.8%)
Food - Other
250,000 Nabisco Brands, Inc.
8.300% 4-15-99 258,438
Energy (0.7%)
Pipelines
100,000 Transcontinental Gas Pipeline Corp.
9.125% 2-1-17 104,875
Financial (3.8%)
Banks (1.4%)
200,000 J. P. Morgan & Company, Inc.
7.625% 9-15-04 206,250
Diversified (1.4%)
200,000 Norwest Financial, Inc.
7.000% 1-15-03 200,250
Insurance (1.0%)
150,000 Torchmark Corp.
8.625% 3-1-17 151,533
Industrial (4.9%)
Other Industrial Services (1.7%)
250,000 Olsten Corp.
7.000% 3-15-06 243,750
Diversified (2.5%)
150,000 Dexter Corp.
9.250% 12-15-16 157,923
200,000 Robbins & Myers, Inc.
6.500% 9-1-03 206,000
363,923
Railroads (0.7%)
100,000 Union Pacific Corp.
7.375% 5-15-01 101,375
Technology (2.7%)
Communications (1.7%)
250,000 Lucent Technologies, Inc.
6.900% 7-15-01 250,000
Office Equipment (1.0%)
100,000 Danka Business Systems PLC #
6.750% 4-1-02 143,875
Utilities (3.7%)
Electric (1.3%)
$175,000 Interstate Power Company
8.625% 9-15-21 $187,031
Gas (1.0%)
150,000 Southwest Gas Corp.
7.500% 8-1-06 150,188
Telephone (1.4%)
200,000 ALLTEL Corp.
7.250% 4-1-04 201,500
Total Non-Convertible Corporate Bonds (cost $2,751,195) 2,769,249
LONG-TERM U.S. GOVERNMENT SECURITIES (4.8%)
Treasury Notes
$100,000 6.000% 11-30-97 $100,100
200,000 6.125% 5-15-98 200,270
200,000 5.875% 8-15-98 199,128
200,000 7.000% 4-15-99 203,604
Total Long-Term U.S. Government
Securities (cost $703,629) 703,102
SHORT-TERM SECURITIES (1.2%)
174,125 State Street Bank & Trust***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $174,144 on 10-1-96 (cost $174,125) 174,125
Total Investments (99.3%) (cost $13,282,048) 14,479,813
Other Assets in Excess of Liabilities (0.7%) 98,791
Net Assets (100.0%) $14,578,604
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (48.8%)
Basic Materials (0.3%)
Mining
700 Minerals Technologies, Inc. $26,163
Consumer, Cyclical (4.5%)
Broadcasting (1.4%)
3,300 Heritage Media Corp. * 62,288
450 Young Broadcasting Corp. * 14,850
2,625 US Satellite Broadcasting Company 61,031
138,169
Casinos (0.5%)
1,425 Circus Circus Enterprises, Inc. * 50,409
Entertainment (1.0%)
1,350 International Game Technology 27,675
14,542 London Clubs International PLC + 68,307
95,982
Lodging (0.6%)
2,700 Extended Stay America, Inc. * 55,350
Publishing (0.7%)
330 Wolters Kluwer N.V. + 41,542
1,150 World Color Press, Inc. * 25,587
67,129
Retailers - Drug Based (0.3%)
325 Cardinal Health, Inc. 26,853
Consumer, Non-Cyclical (7.4%)
Food-Other (2.9%)
1,125 Campbell Soup Company 87,750
2,150 Kellogg Company 148,081
775 Wm Wrigley Jr. Company 46,694
282,525
Household Products (1.4%)
1,000 Colgate-Palmolive Company 86,875
300 Unilever N.V. # 47,288
134,163
Medical Supplies (0.5%)
1,050 Baxter International, Inc. 49,087
Pharmaceuticals (2.6%)
3,099 Glaxo Wellcome PLC + 48,595
124 Sandoz AG + 148,919
875 Smithkline Beecham PLC # 53,266
250,780
Financial (19.4%)
Banks (8.2%)
182 Banco Popular Espanol S. A. + 33,433
3,225 Bank of New York Company, Inc. 94,734
1,000 Bank United Corp. 24,875
10,255 Barclays PLC # 150,774
1,075 Citicorp 97,422
3,400 Home Bancorp Elgin, Inc. 40,375
400 Sterling Bancorp 5,100
1,325 Wells Fargo & Company 344,500
791,213
Diversified (2.4%)
3,125 Associates First Capital Corp. $128,125
800 AT&T Capital Corp. 35,900
900 First Data Corp. 73,462
237,487
Insurance (6.4%)
1,530 Delphi Financial Group, Inc. Class A * 42,840
1,500 Foremost Corp. Of America 82,500
2,600 PennCorp Financial Group, Inc. 83,850
1,625 Protective Life Corp. 61,344
5,725 UICI * 148,850
3,200 UNUM Corp. 205,200
624,584
Real Estate (0.8%)
2,350 Redwood Trust, Inc. 75,200
Savings & Loans (1.6%)
1,825 First Savings Bank Washington Bancorp, Inc. 30,340
6,575 Klamath First Bancorp, Inc. 93,694
1,200 Ocean Financial Corp. * 28,650
152,684
Industrial (6.5%)
Containers & Packaging (0.4%)
1,025 Sealed Air Corp. * 38,181
Electronic Components & Equipment (2.7%)
6,325 Dionex Corp. * 240,350
512 Pittway Corp. Class A 21,952
262,302
Heavy Machinery (0.8%)
3,075 AGCO Corp. 78,412
Other Industrial Services (2.3%)
856 Hays PLC + 6,299
1,725 John H. Harland Company 51,750
4,550 Robert Half International, Inc. * 167,782
225,831
Pollution Control (0.3%)
4,021 Rentokil Initial PLC + 26,317
Technology (9.7%)
Advanced Medical Devices (0.6%)
900 Medtronic, Inc. 57,713
Aerospace/Defense (3.0%)
750 Boeing Company 70,875
625 Lockheed Martin Corp. 56,328
1,750 Sunstrand Corp. 68,250
775 United Technologies Corp. 93,097
288,550
Auto Manufacturers (0.9%)
1,450 General Motors Corp. Class H 83,738
Communications (0.1%)
325 Advanced Fibre Communications, Inc. 8,125
17 MFS Communications Company, Inc. * 742
8,867
Computers (2.2%)
2,750 Computer Sciences Corp. * $211,406
Diversified (0.6%)
2,325 Primark Corp. * 63,647
Industrial Technology (0.2%)
1,275 Pfeiffer Vacuum Technology SpA # * 19,603
Office Equipment (1.2%)
1,025 Alco Standard Corp. 51,122
1,575 Danka Business Systems PLC # 62,606
113,728
Software (0.9%)
1,225 Electronic Data Systems Corp. 75,184
775 Factset Research Systems, Inc. * 14,822
90,006
Utilities (1.0%)
Gas (0.4%)
1,875 Southern Union Company 43,593
Telephone (0.6%)
1,050 Cincinnati Bell, Inc. 55,650
Total Common Stock (cost $4,068,247) 4,725,322
NON-CONVERTIBLE PREFERRED STOCK (2.7%)
Financial (2.0%)
Diversified
8,000 Hartford Capital Corp. Series A 198,000
Technology (0.7%)
Software
412 SAP AG-Vorzug + 69,164
Total Non-Convertible Preferred Stock (cost $249,969 ) 267,164
CONVERTIBLE PREFERRED STOCK (1.4%)
Industrial (0.8%)
Diversified
800 Alco Standard Series B 72,800
Technology (0.6%)
Communications
775 MFS Communications Company, Inc. 58,125
Total Convertible Preferred Stock (cost $116,558 ) 130,925
<CAPTION>
Principal Description Value
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS (1.9%)
Industrial (1.9%)
Diversified (1.1%)
$100,000 Cooper Industries, Inc.
7.050% 1-1-15 109,625
Oil Companies - Secondary (0.8%)
75,000 Ashland Oil, Inc.
6.750% 7-1-14 76,688
Total Convertible Corporate Bonds (cost $179,954 ) 186,313
NON-CONVERTIBLE CORPORATE BONDS (23.4%)
Consumer, Cyclical (7.3%)
Broadcasting (1.0%)
100,000 Heritage Media Corp.
8.750% 2-15-06 95,000
Casinos (2.3%)
$240,000 Circus Circus Enterprises, Inc.
6.450% 2-1-06 $222,300
Entertainment (1.2%)
120,000 Walt Disney Company
6.375% 3-30-01 117,750
Retailers - Broadline (2.8%)
275,000 Sears Roebuck Acceptance Corp.
6.500% 6-15-00 272,594
Financial (13.5%)
Banks (5.5%)
150,000 First Nationwide Holdings, Inc.
9.125% 1-15-03 147,000
200,000 First USA Bank of Wilmington Delaware, Inc.
5.750% 1-15-99 195,750
200,000 Bank Of Boston Corp.
6.625% 12-1-05 189,750
532,500
Diversified (8.0%)
400,000 Associates Corp. of North America
5.600% 1-15-01 380,500
400,000 International Lease Finance Corp.
5.750% 12-15-99 388,500
769,000
Industrial (1.6%)
Diversified
145,000 Dade International Inc.
11.125% 5-1-06 153,700
Technology (1.0%)
Aerospace/Defense
100,000 Lockheed Martin Corp.
6.550% 5-15-99 99,875
Total Non-Convertible Corporate Bonds (cost $2,316,324) 2,262,719
FOREIGN GOVERNMENT BONDS (3.1%) @
C 370,000 Canadian Government
8.750% 12-1-05 (cost $297,524 ) 302,279
LONG-TERM U.S. GOVERNMENT SECURITIES (12.3%)
Treasury Notes
300,000 5.000% 1-31-98 296,259
300,000 6.125% 5-15-98 300,562
180,000 5.500% 11-15-98 177,620
225,000 5.750% 10-31-00 219,506
200,000 5.625% 2-28-01 193,762
Total Long-Term U.S. Government
Securities (cost $1,191,968) 1,187,709
SHORT-TERM U.S. GOVERNMENT AGENCIES (2.1%)
200,000 Federal Home Loan Bank
5.190% 11-21-96 (cost $198,530) 198,530
COMMERCIAL PAPER (4.5%)
440,000 Household Finance Company
5.750% 10-1-96 (cost $440,000) 440,000
Total Investments ( 100.2%) (cost $9,059,074) $9,700,961
<CAPTION>
Notional Description Value
Amount
UNREALIZED GAIN(LOSS) ON FORWARD
FOREIGN CURRENCY CONTRACTS (0.0%) @
<S><C> <C> <C> <C>
B 68,000 British Pound 11-19-96 Sell $(3,790)
B 11,000 British Pound 1-17-97 Sell (163)
D 15,000 German Deutschemark 12-13-96 Sell 108
D 80,000 German Deutschemark 1-17-97 Sell 1,322
G 54,000 Dutch Guilder 11-19-96 Sell 80
S 59,784 Swiss Franc 10-1-96 Buy (21)
Total Unrealized Loss on Forward Foreign Currency Contracts (2,464)
Liabilities in Excess of Other Assets (-0.2%) (12,541)
Net Assets (100.0%) $9,685,956
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
FLEXIBLE INCOME PORTFOLIO
Description Principal Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (80.2%)
Consumer, Cyclical (14.1%)
Broadcasting (2.9%)
CF Cable T.V., Inc.
11.625% 2-15-05 $475,000 $534,375
Entertainment (2.5%)
United Artists Theatres
9.300% 7-1-15 495,882 457,451
Home Furnishings (3.5%)
Selmer Company, Inc.
11.000% 5-15-05 600,000 638,250
Retailers - Apparel (1.4%)
Loehmann's, Inc.
11.875% 5-15-03 250,000 263,125
Retailers - Specialty (3.8%)
Pier 1 Imports, Inc.
11.500% 7-15-03 699,000 699,000
Consumer, Non-Cyclical (6.5%)
Food-Other (4.8%)
Carr-Gottstein Foods Company
12.000% 11-15-05 400,000 419,000
Ralston Purina Company
7.875% 6-15-25 475,000 467,281
886,281
Healthcare (1.7%)
Tenet Healthcare Corp.
8.625% 12-1-03 300,000 312,750
Energy (2.9%)
Oil Companies - Secondary
Texas Eastern Transmission Corp.
10.000% 10-1-11 500,000 526,250
Financial (38.8%)
Banks (16.8%)
Anchor Bancorp, Inc.
8.938% 7-9-03 500,000 500,625
Center Banks, Inc.
8.375% 10-1-02 500,000 522,500
First National Bank of Boston, Inc.
7.375% 9-15-06 500,000 498,125
First Nationwide Financial Corp.
10.625% 10-1-03 250,000 262,188
First Union Corp.
7.050% 8-1-05 400,000 392,000
Norwest Financial, Inc.
6.750% 6-1-05 200,000 194,500
Standard Federal Bancorp, Inc.
7.750% 7-17-06 250,000 253,750
Swiss Bank Corp.
7.000% 10-15-15 500,000 470,000
3,093,688
Diversified (8.8%)
California Hotel Finance Corp.
11.000% 12-1-02 $250,000 $261,875
Ford Motor Credit Company
7.750% 3-15-05 700,000 715,750
6.750% 8-15-08 250,000 235,938
Lifestyle Furnishings, Inc.
10.875% 8-1-06 400,000 414,500
1,628,063
Insurance (13.2%)
Delphi Financial Group, Inc.
8.000% 10-1-03 1,000,000 958,750
Leucadia National Corp.
10.375% 6-15-02 475,000 503,500
Orion Capital Corp.
7.250% 7-15-05 1,000,000 982,500
2,444,750
Industrial (8.3%)
Diversified (5.7%)
Consolidated Cigar Acquisition Corp.
10.500% 3-1-03 390,000 409,013
USG Corp.
9.250% 9-15-01 Series B 400,000 418,500
8.500% 8-1-05 225,000 224,156
1,051,669
Steel (2.6%)
Weirton Steel Corp.
11.375% 7-1-04 490,000 490,000
Technology (6.8%)
Communications (1.3%)
TCI Communications, Inc.
8.000% 8-1-05 250,000 243,438
Computers (2.7%)
International Business Machines Corp.
7.500% 6-15-13 500,000 500,000
Diversified (2.8%)
Neodata Services, Inc.
12.000% 5-1-03 500,000 510,625
Utilities (2.8%)
Electric
El Paso Electric Company
9.400% 5-1-11 500,000 511,250
Total Non-Convertible Corporate Bonds (cost $14,720,851) 14,790,965
CONVERTIBLE CORPORATE BONDS (4.9%)
Consumer, Cyclical (2.9%) Retailers - Apparel
Saks Holdings, Inc.
5.500% 9-15-06 500,000 526,875
Industrial (2.0%)
Diversified
Pegasus Media & Communications, Inc.
12.500% 7-1-05 350,000 371,875
Total Convertible Corporate Bonds (cost $850,000) 898,750
LONG-TERM U.S. GOVERNMENT SECURITIES (8.9%)
Treasury Notes f
7.000% 7-15-06 (cost $1,627,817) $1,610,000 $1,643,037
COMMERCIAL PAPER (4.4%)
Prudential Funding Corp.
5.720% 10-1-96 (cost $820,000) $820,000 $820,000
Total Investments (98.4%) (cost $18,018,668) 18,152,752
Other Assets in Excess of Liabilities (1.6%) 289,710
Net Assets (100.0%) $18,442,462
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
INCOME PLUS PORTFOLIO
Description Principal Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (90.3%)
Basic Materials (3.9%)
Precious Metals
Inco, Ltd.
9.600% 6-15-22 $2,500,000 $2,656,025
Consumer Cyclical (25.0%)
Airlines (2.0%)
Piedmont Aviation, Inc.
10.100% 5-13-07 1,048,000 973,330
USAir, Inc.
10.800% 1-1-05 400,000 390,500
1,363,830
Auto Parts & Equipment(3.6%)
Mark IV Industries, Inc.
8.750% 4-1-03 2,430,000 2,454,300
Casinos(2.9%)
Circus Circus Enterprises, Inc.
6.450% 2-1-06 1,000,000 923,250
Majestic Star LLC
12.750% 5-15-03 1,000,000 1,095,000
2,018,250
Conglomerates (2.7%)
ITT Corp.
6.750% 11-15-05 2,000,000 1,872,940
Home Furnishings(3.0%)
Black & Decker Corp.
7.500% 4-1-03 2,000,000 2,030,420
Publishing(5.1%)
Golden Books Publishing, Inc.
7.650% 9-15-02 2,250,000 1,912,500
News America Holdings, Inc.
8.625% 2-1-03 1,500,000 1,603,725
3,516,225
Real Estate (1.4%)
M.D.C. Holdings, Inc.
11.125% 12-15-03 1,000,000 970,000
Retailers - Broadline (4.3%)
Dayton Hudson Corp.
8.500% 12-1-22 2,000,000 2,037,340
Kmart Corp.
8.125% 12-1-06 1,000,000 880,000
2,917,340
Consumer Non-Cyclical (21.4%)
Consumer Services (7.0%)
ERAC USA Finance Company
6.350% 1-15-01 2,000,000 1,942,080
Hertz Corp.
6.000% 1-15-03 2,000,000 1,890,080
Metromedia International Group, Inc.
9.875% 3-15-97 974,000 976,435
4,808,595
Food - Other (2.4%)
BFI Acquisition Corp.
12.000% 12-1-01 ## $1,000,000 $410,000
Fleming Companies, Inc.
7.875% 12-15-01 1,500,000 1,320,000
1,730,000
Food Retailers (7.5%)
American Stores Company
9.125% 4-1-02 1,000,000 1,082,450
Great Atlantic & Pacific Tea, Inc.
7.700% 1-15-04 2,000,000 1,949,140
Ralph's Grocery Company
10.450% 6-15-04 1,000,000 1,016,250
Super Rite Foods, Inc.
10.625% 4-1-02 1,000,000 1,071,250
5,119,090
Healthcare(4.5%)
Dynacare, Inc.
10.750% 1-15-06 1,500,000 1,515,000
Mediq/PRN Life Support Services, Inc.
12.125% 7-1-99 1,463,000 1,578,197
3,093,197
Energy (11.1%)
Oil Drilling (4.2%)
Louisiana Land Exploration Company
7.625% 4-15-13 2,000,000 1,972,800
Maxus Energy Corp.
11.250% 5-1-13 905,000 927,625
2,900,425
Oilfield Equipment/Services ( 1.6%)
McDermott, Inc.
9.375% 3-15-02 1,000,000 1,075,910
Pipelines (5.3%)
Enron Corp.
6.750% 7-1-05 2,500,000 2,397,575
Williams Companies, Inc.
10.250% 7-15-20 1,000,000 1,233,460
3,631,035
Financial (10.8%)
Banks (1.6%)
Citicorp
9.500% 2-1-02 1,000,000 1,109,190
Diversified (6.1%)
BAT Capital Corp.
6.500% 11-24-03 2,000,000 1,910,900
Continental Bank N.A.
11.250% 7-1-01 1,100,000 1,183,941
GNS Financial Corp.
9.250% 3-15-03 1,000,000 1,063,440
4,158,281
Insurance (0.2%)
Reliance Financial Services Corp.
9.480% 11-1-00 150,000 150,000
Securities Brokers (2.9%)
Lehman Brothers, Inc.
7.625% 6-1-06 2,000,000 1,981,280
Industrial (11.9%)
Air Freight (1.6%)
Federal Express Corp.
9.625% 10-15-19 $1,000,000 $1,088,370
Computers (1.5%)
Unisys Corp.
8.875% 7-15-97 1,000,000 997,500
Containers & Packaging (1.5%)
Stone Container Corp.
11.875% 8-1-16 1,000,000 1,050,000
Factory Equipment (1.6%)
Penn Central Corp.
10.625% 4-15-00 1,000,000 1,081,270
Other Industrial Services (1.5%)
Figgie International, Inc.
9.875% 10-1-99 1,000,000 1,030,000
Transportation Equipment (2.8%)
AAR Corp.
7.250% 10-15-03 2,000,000 1,924,840
Trucking (1.4%)
Penske Truck Leasing Company
6.550% 9-19-00 1,000,000 996,950
Utilities (6.2%)
Electric
El Paso Electric Company
8.250% 2-1-03 1,000,000 987,280
8.900% 2-1-06 500,000 502,650
First PV Funding Corp.
10.300% 1-15-14 1,225,000 1,298,500
Texas Utilities Electric Company
6.750% 4-1-03 1,500,000 1,468,290
4,256,720 Total Non-Convertible Corporate Bonds
(cost $61,196,329 ) 61,981,983
<CAPTION>
Description Shares Value
<S> <C> <C>
NON-CONVERTIBLE PREFERRED STOCK (0.5%)
Financial
Banks
Riggs National Corp. Class B, 10.750%
(cost $316,275) 12,651 $354,228
CONVERTIBLE PREFERRED STOCK (3.1%)
Industrial
Communications
Time Warner, Inc. 144A (cost $1,999,448) 2,044 2,146,200
<CAPTION>
Description Principal Value
<S> <C> <C>
COMMERCIAL PAPER (3.5%)
Marsh & McLennan Companies, Inc.
5.320% 10-3-96 (cost $ 2,399,290) $2,400,000 $2,399,290
SHORT-TERM SECURITIES (0.1%)
State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 9-30-96 to be repurchased
at $90,898 on 10-1-96 (cost $90,888) 90,888 90,888
Total Investments (97.5 %) (cost $66,002,230) 66,972,589
Other Assets in Excess of Liabilities ( 2.5%) 1,736,923
Net Assets (100.0%) $68,709,512
</TABLE>
September 30, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
TAX-EXEMPT PORTFOLIO
Description ** Principal Value
<S> <C> <C>
MUNICIPAL BONDS (95.0%)
Alaska (3.8%)
Alaska State Housing Finance Corp.,
Mortgage Program, Revenue Bonds,
5.900%, 12-1-33, A+/Aa1 $1,000,000 $969,200
California (0.3%)
Los Angeles, Convention and Exhibition
Center, Certificates of Participation,
9.000%, 12-1-20, AAA/Aaa 50,000 65,077
Florida (4.3%)
Broward County, Resource Recovery,
Revenue Bonds, 7.950%, 12-1-08, A-/A 1,000,000 1,101,380
Illinois (11.6%)
Calumet City, General Obligation Bonds,
Series B, 5.350%, 1-1-17, NR/Aaa 1,000,000 954,710
Illinois State Dedicated Civic Center Tax,
Revenue Bonds, Series A,
6.000%, 12-15-15, AAA/Aaa 1,000,000 1,005,050
West Chicago, IDR-Leggett and Platt, Inc.
Project, Revenue Bonds, Series 1994,
6.900%, 9-1-24, A/NR 1,000,000 1,037,200
2,996,960
Indiana (8.0%)
Indiana State Office Building and Correctional
Facility Program, Revenue Bonds,
6.375%, 7-1-16, A+/A1 1,000,000 1,035,610
Indiana Transportation Finance Authority,
Airport Facility Lease Revenue Series,
1992A, 6.250%, 11-1-16, NR/A 1,000,000 1,020,900
2,056,510
Iowa (11.7%)
Iowa Finance Authority, Drake University
Project, Revenue Bonds,
5.400%, 12-1-16, AAA/Aaa 1,000,000 968,880
Iowa Higher Education Loan Authority,
St. Ambrose University Project, Revenue
Bonds, 5.750%, 2-1-11, BBB/NR 1,000,000 962,160
Iowa State Certificate of Participation,
Revenue Bonds, Series 1992A,
6.500%, 7-1-06, AAA/Aaa 1,000,000 1,098,640
3,029,680
Kentucky (4.4%)
Jefferson County, Pollution Control,
Revenue Bonds, Series A,
5.900%, 4-15-23, AA/Aa2 1,000,000 1,004,090
Kentucky Housing Corp., Single Family
Mortgage Revenue AMT Bonds, Series
1991D-1, 6.800%, 1-1-24, AAA/Aaa 130,000 134,624
1,138,714
Maine (3.9%)
Maine State Housing Authority, Mortgage
Revenue AMT Bonds, Series A-1
6.500%, 11-15-27, AAA/Aaa 1,000,000 1,015,390
Massachusetts (3.9%)
Massachusetts State Housing Finance
Agency, Series 1993A
6.300%, 10-1-13, A+/A1 $1,000,000 $1,017,090
Michigan (15.6%)
Detroit School District, General Obligation
Bonds, 6.250%, 5-1-12, AA/Aa 1,000,000 1,043,720
Michigan State Building Authority, Revenue
Refunding Special Sinking Fund, Series
1992A, 6.800%, 10-1-21, AA-/A1 900,000 972,504
Municipal Bond Authority, Pooled Project,
Series B, 5.625%, 10-1-19, AA/Aa 1,000,000 979,170
Royal Oak Hospital Finance Authority,
Revenue Bonds, Series F,
6.250%, 1-1-19, NR/Aa 1,000,000 1,026,820
4,022,214
Nebraska (4.0%)
Nebraska Higher Education Loan Program,
Revenue AMT Bonds, Series 1992A-6,
6.950%, 6-1-08, NR/A 1,000,000 1,029,690
Nevada (4.0%)
Municipal Bond Authority, Project No. 52,
Series A, 6.000%, 5-15-24, AA/Aa 1,000,000 1,010,880
Nevada Housing Division, Single Family
Program, AMT Bonds, Series 1990B,
7.900%, 4-1-22, AA/NR 10,000 10,502
1,021,382
New York (3.9%)
New York State Local Government
Assistance Corporation, Series 1995A,
6.000%, 4-1-16, A/A 1,000,000 1,010,860
Pennsylvania (0.0%)
Pennsylvania Housing Finance Agency,
Multi-Family Mortgage Revenue Bonds, Series 1985A,
9.375%, 8-1-28, AAA/Aa 5,000 5,129
South Dakota (3.9%)
Sioux Falls South Dakota School District,
Number 49-5 Refunding Capital Outlay
Certificates, Series 1992B,
5.750%, 7-1-12, AAA/Aaa 1,000,000 1,003,780
Texas (3.8%)
Carroll Independent School District,
General Obligation Bonds,
5.625%, 2-15-19, AAA/Aaa 1,000,000 990,510
Virginia (4.0%)
Virginia State Housing Development
Authority, Multi Family Housing, Series
1995 II, 6.300%, 11-1-15, AAA/Aaa 1,000,000 1,035,080
Wyoming (3.9%)
Wyoming State Farm Loan Board, Capital
Facilities Revenue Bonds,
5.750%, 10-1-20, AA-/NR 1,000,000 994,840
Total Investments (95.0%) (cost $24,283,313) 24,503,486
Other Assets in Excess of Liabilities (5.0%) 1,300,132
Net Assets (100.0%) $25,803,618
</TABLE>
SCHEDULE OF INVESTMENTS
NOTES TO SCHEDULE OF INVESTMENTS
+ Foreign securities.
@ Notional amount of forward foreign currency contracts and principal amount
of foreign bonds are denominated in the indicated currency: B-British
Pound; C-Canadian Dollar; D-German Deutschemark; F-French Franc; G-Dutch
Guilder; I-Indonesian Rupiah; J-Japanese Yen; K-Swedish Krona; M-Finnish
Markka; S-Swiss Franc.
# American Depository Receipts or Global Depository Receipts.
## BFI Acquisition Corp. is currently in default on payment of its past two
six month interest payments which were due 12-1-95 and 6-1-96.
* Presently non-income producing.
** Ratings indicated are by Standard and Poor's/Moody's, respectively,
and are unaudited; NR: not rated by this service.
f U.S. Treasury Notes owned by Flexible Income with an aggregate market value
of $536,406 have been segregated with the custodian to cover margin
requirements on five, 10 year U.S. Treasury Note December 1996 contracts.
At September 30, 1996 the Portfolio had unrealized losses of $8,594 and
variation margin receivable of $938 on these futures contracts.
^ Not affiliated with IDEX Management, Inc.
See Note 2 to financial statements for security valuation and other significant
accounting policies.
See Note 5 to financial statements for futures, forward currency contracts and
other derivative transactions.
See Note 6 to financial statements for cost and unrealized appreciation and
depreciation of investments for Federal income tax purposes.
*** Aggressive Growth
Collateralized by $1,195,000 principal of U.S. Treasury Notes 6.250% due
8/15/23; market value and accrued interest aggregated $1,093,425 for this
collateral at September 30, 1996.
*** Global
Collateralized by $82,000 principal of U.S. Treasury Notes 6.250% due 8/15/23;
market value and accrued interest aggregated $75,030 for this collateral at
September 30, 1996.
*** Growth
Collateralized by $73,000 principal of U.S. Treasury Notes 6.250% due 8/15/23;
market value and accrued interest aggregated $66,795 for this collateral at
September 30, 1996.
*** C.A.S.E.
Collateralized by $100,000 principal of U.S. Treasury Notes 8.750% due 8/15/20;
market value and accrued interest aggregated $120,750 for this collateral at
September 30, 1996.
*** Tactical Asset Allocation
Collateralized by $47,000 principal of U.S. Treasury Notes 6.250% due 8/15/23;
market value and accrued interest aggregated $43,005 for this collateral at
September 30, 1996.
*** Equity-Income
Collateralized by $165,000 principal of U.S. Treasury Notes 7.875% due 11/15/07;
market value and accrued interest aggregated $180,312 for this collateral at
September 30, 1996.
*** Income Plus
Collateralized by $102,000 principal of U.S. Treasury Notes 6.250% due 8/15/23;
market value and accrued interest aggregated $93,330 for this collateral at
September 30, 1996.
September 30, 1996
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
All numbers (except per share amounts) in thousands
Aggressive Capital
Assets: Growth Appreciation Global
<S> <C> <C> <C>
Investment securities, at market value $26,600 $23,953 $143,357
Cash - 225 11
Receivables:
Investment securities sold 353 - 387
Shares of beneficial interest sold 84 1,099 607
Interest 2 - -
Dividends 8 71 173
Due from investment adviser 18 - -
Forward foreign currency contracts - - 478
Other - 2 92
Total assets 27,065 25,350 145,105
Liabilities:
Accounts payable:
Investment securities purchased 861 1,627 118
Shares of beneficial interest redeemed 27 566 63
Accrued liabilities:
Management and advisory fees - 2 118
Distribution fees 9 8 47
Transfer agent fees and expenses 7 4 61
Forward foreign currency contracts - 14 183
Other 33 25 87
Total liabilities 937 2,246 677
Net Assets $26,128 $23,104 $144,428
Investment securities, at cost $22,799 $20,622 $118,796
Net asset value per share (net assets divided
by shares outstanding):
Class A shares $15.75 $15.75 $21.40
Class B shares $15.63 $15.69 $21.14
Class C shares $15.65 $15.70 $21.04
Class T shares (1) $- $- $-
Offering price per share (2):
Class A shares $16.67 $16.67 $22.65
Class T shares (1) $- $- $-
Tactical Asset
Assets: Growth C.A.S.E. Allocation
Investment securities, at market value $1,173,250 $2,941 $16,623
Cash 46 - -
Receivables:
Investment securities sold - - -
Shares of beneficial interest sold 1,082 44 349
Interest 618 1 65
Dividends 351 145 12
Due from investment adviser - 20 -
Forward foreign currency contracts 443 - -
Other 38 26 1
Total assets 1,175,828 3,177 17,050
Liabilities:
Accounts payable:
Investment securities purchased 4,600 - -
Shares of beneficial interest redeemed 1,615 1 95
Accrued liabilities:
Management and advisory fees 110 - 46
Distribution fees 169 2 9
Transfer agent fees and expenses 91 1 -
Forward foreign currency contracts - - -
Other 471 5 10
Total liabilities 7,056 9 160
Net Assets $1,168,772 $3,168 $16,890
Investment securities, at cost $816,965 $2,838 $16,137
Net asset value per share (net assets divided
by shares outstanding):
Class A shares $22.21 $10.46 $11.03
Class B shares $21.85 $10.41 $11.02
Class C shares $21.91 $10.42 $11.03
Class T shares (1) $22.41 $- $-
Offering price per share (2):
Class A shares $23.50 $11.07 $11.67
Class T shares (1) $24.49 $- $-
Equity- Flexible
Assets: Income Balanced Income
Investment securities, at market value $14,480 $9,701 $18,153
Cash 102 10 4
Receivables:
Investment securities sold - 458 504
Shares of beneficial interest sold 160 35 3
Interest 68 70 403
Dividends 15 6 -
Due from investment adviser - 3 -
Forward foreign currency contracts - 2 -
Other - 3 1
Total assets 14,825 10,288 19,068
Liabilities:
Accounts payable:
Investment securities purchased 199 562 500
Shares of beneficial interest redeemed 23 9 79
Accrued liabilities:
Management and advisory fees 2 - 12
Distribution fees 6 3 6
Transfer agent fees and expenses - 2 3
Forward foreign currency contracts - 4 -
Other 16 22 26
Total liabilities 246 602 626
Net Assets $14,579 $9,686 $18,442
Investment securities, at cost $13,282 $9,059 $18,019
Net asset value per share (net assets divided
by shares outstanding):
Class A shares $13.27 $13.47 $9.19
Class B shares $13.27 $13.46 $9.18
Class C shares $13.27 $13.46 $9.18
Class T shares (1) $- $- $-
Offering price per share (2):
Class A shares $14.04 $14.25 $9.65
Class T shares (1) $- $- $-
Income Tax-
Assets: Plus Exempt
Investment securities, at market value $66,973 $24,503
Cash 1 774
Receivables:
Investment securities sold 614 979
Shares of beneficial interest sold 175 11
Interest 1,629 585
Dividends 52 -
Due from investment adviser - 18
Forward foreign currency contracts - -
Other - 1
Total assets 69,444 26,871
Liabilities:
Accounts payable:
Investment securities purchased 600 997
Shares of beneficial interest redeemed 44 33
Accrued liabilities:
Management and advisory fees 1 -
Distribution fees 21 7
Transfer agent fees and expenses 36 4
Forward foreign currency contracts - -
Other 32 26
Total liabilities 734 1,067
Net Assets $68,710 $25,804
Investment securities, at cost $66,002 $24,283
Net asset value per share (net assets divided
by shares outstanding):
Class A shares $10.41 $11.36
Class B shares $10.40 $11.36
Class C shares $10.40 $11.36
Class T shares (1) $- $-
Offering price per share (2):
Class A shares $10.93 $11.93
Class T shares (1) $- $-
</TABLE>
(1) Class T shares are not available to new investors; only existing Class T
shareholders may purchase additional Class T shares.
(2) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in
the Prospectus. Net asset value per share for Class B and Class C shares
represents offering price. The redemption price for Class B is computed
as net asset value less any applicable deferred sales charges per share.
For the year ended September 30, 1996
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
All numbers in thousands Aggressive Capital
Investment Income: Growth Appreciation Global
<S> <C> <C> <C>
Interest $60 $52 $211
Dividends 100 165 1,527
Withholding taxes on foreign dividends (1) (3) (160)
159 214 1,578
Expenses:
Management and advisory fees 227 142 1,131
Distribution and service fees:
Class A 68 38 371
Class B 8 7 16
Class C 22 23 49
Transfer agent fees and expenses 142 62 409
Custody fees and expenses 22 45 228
Registration fees 74 65 56
Trustees fees and expenses 3 1 5
Prospectus expenses 14 6 46
Other 28 16 93
Less amounts waived/reimbursed by the
investment adviser (170) (123) -
438 282 2,404
Custodian earnings and brokerage credits - (1) (29)
Net expenses 438 281 2,375
Net investment income (loss) (279) (67) (797)
Realized and unrealized gain (loss) on
investments
and foreign currency:
Net realized gain (loss) on investments (1,319) 456 13,000
Net realized gain (loss) from foreign
currency transactions - (25) 2,721
Net realized gain (loss) (1,319) 431 15,721
Net unrealized appreciation (depreciation)
during the period on:
Investments 743 2,215 10,591
Translation of assets and liabilities
denominated in foreign currency - 1 (650)
Net unrealized appreciation (depreciation)
during the period 743 2,216 9,941
Net gain (loss) on investments and
foreign currency (576) 2,647 25,662
Net increase (decrease) in net assets
resulting from operations $(855) $2,580 $24,865
Tactical
Asset
Investment Income: Growth C.A.S.E. (1) Allocation
Interest $5,513 $13 $213
Dividends 3,207 221 81
Withholding taxes on foreign dividends (37) - (1)
8,683 234 293
Expenses:
Management and advisory fees 5,460 18 82
Distribution and service fees:
Class A 1,831 2 12
Class B 16 4 23
Class C 72 7 22
Transfer agent fees and expenses 1,596 9 26
Custody fees and expenses 137 9 19
Registration fees 92 57 94
Trustees fees and expenses 46 - -
Prospectus expenses 236 4 2
Other 452 4 10
Less amounts waived/reimbursed by the
investment adviser - (55) (28)
9,938 59 262
Custodian earnings and brokerage credits (58) - -
Net expenses 9,880 59 262
Net investment income (loss) (1,197) 175 31
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 70,689 (190) 48
Net realized gain (loss) from foreign
currency transactions 1,017 - -
Net realized gain (loss) 71,706 (190) 48
Net unrealized appreciation (depreciation)
during the period on:
Investments 223,165 103 486
Translation of assets and liabilities
denominated in foreign currency 289 - -
Net unrealized appreciation (depreciation)
during the period 223,454 103 486
Net gain (loss) on investments and
foreign currency 295,160 (87) 534
Net increase (decrease) in net assets
resulting from operations $293,963 $88 $565
Equity- Flexible
Investment Income: Income Balanced Income
Interest $165 $243 $1,610
Dividends 173 72 -
Withholding taxes on foreign dividends (1) (1) -
337 314 1,610
Expenses:
Management and advisory fees 98 84 174
Distribution and service fees:
Class A 28 20 64
Class B 7 3 2
Class C 9 21 8
Transfer agent fees and expenses 46 26 51
Custody fees and expenses 2 36 23
Registration fees 80 73 54
Trustees fees and expenses 1 2 1
Prospectus expenses 4 3 6
Other 7 9 23
Less amounts waived/reimbursed by the
investment adviser (92) (106) (41)
190 171 365
Custodian earnings and brokerage credits (6) - -
Net expenses 184 171 365
Net investment income (loss) 153 143 1,245
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 346 1,304 718
Net realized gain (loss) from foreign
currency transactions - 4 -
Net realized gain (loss) 346 1,308 718
Net unrealized appreciation (depreciation)
during the period on:
Investments 810 208 (710)
Translation of assets and liabilities
denominated in foreign currency - 4 -
Net unrealized appreciation (depreciation)
during the period 810 212 (710)
Net gain (loss) on investments and
foreign currency 1,156 1,520 8
Net increase (decrease) in net assets
resulting from operations $1,309 $1,663 $1,253
Income Tax-
Investment Income: Plus Exempt
Interest $5,573 $1,564
Dividends 86 -
Withholding taxes on foreign dividends - -
5,659 1,564
Expenses:
Management and advisory fees 414 160
Distribution and service fees:
Class A 231 91
Class B 5 1
Class C 23 3
Transfer agent fees and expenses 127 40
Custody fees and expenses 27 19
Registration fees 53 50
Trustees fees and expenses 2 1
Prospectus expenses 14 3
Other 38 24
Less amounts waived/reimbursed by the
investment adviser - (124)
934 268
Custodian earnings and brokerage credits (13) -
Net expenses 921 268
Net investment income (loss) 4,738 1,296
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 782 222
Net realized gain (loss) from foreign
currency transactions - -
Net realized gain (loss) 782 222
Net unrealized appreciation (depreciation)
during the period on:
Investments (491) 3
Translation of assets and liabilities
denominated in foreign currency - -
Net unrealized appreciation (depreciation)
during the period (491) 3
Net gain (loss) on investments and
foreign currency 291 225
Net increase (decrease) in net assets
resulting from operations $5,029 $1,521
</TABLE>
(1) From the commencement of investment operations on February 1, 1996
through September 30, 1996.
For the years ended September 30,
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
All numbers in thousands
Aggressive Growth
1996 (1) 1995 (2)
<S> <C> <C>
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(279) $(150)
Net realized gain (loss) on investments and
foreign currency transactions (1,319) 1,358
Net unrealized appreciation (depreciation)
during period 743 3,058
Net increase (decrease) in net assets resulting
from operations (855) 4,266
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions (1,314) -
(1,314) -
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 16,192 14,370
Shares issued on reinvestment of distributions 1,094 -
Cost of shares repurchased (9,999) (1,690)
Net increase (decrease) from Class A share
transactions 7,287 12,680
Class B (3)
Proceeds from sale of shares 2,006 -
Shares issued on reinvestment of distributions 15 -
Cost of shares repurchased (256) -
Net increase from Class B share transactions 1,765 -
Class C
Proceeds from sale of shares 3,772 2,108
Shares issued on reinvestment of distributions 179 -
Cost of shares repurchased (3,189) (571)
Net increase (decrease) from Class C share
transactions 762 1,537
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 9,814 14,217
Net increase (decrease) in net assets 7,645 18,483
Net Assets:
Beginning of period 18,483 -
End of period $26,128 $18,483
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $24,031 $14,217
Undistributed net investment income (loss) (1) -
Undistributed net realized gain (loss) from
investments and foreign currency transactions (1,703) 1,208
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 3,801 3,058
Total net assets $26,128 $18,483
Shares of beneficial interest:
Class A
Shares sold 1,031 1,055
Shares issued on reinvestment of distributions 73 -
Shares redeemed (649) (108)
Net increase (decrease) in shares outstanding 455 947
Shares outstanding at beginning of
period 947 -
Shares outstanding at end of period 1,402 947
Class B (3)
Shares sold 131 -
Shares issued on reinvestment of distributions 1 -
Shares redeemed (17) -
Net increase in shares outstanding 115 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 115 -
Class C
Shares sold 240 137
Shares issued on reinvestment of distributions 12 -
Shares redeemed (206) (39)
Net increase (decrease) in shares outstanding 46 98
Shares outstanding at beginning of
period 98 -
Shares outstanding at end of period 144 98
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Capital Appreciation
1996 (1) 1995 (2)
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(67) $29
Net realized gain (loss) on investments and foreign
currency transactions 431 476
Net unrealized appreciation (depreciation) during
period 2,216 1,103
Net increase (decrease) in net assets resulting
from operations 2,580 1,608
Distributions to shareholders:
From net investment income:
Class A (36) -
Class B (3) (1) -
Class C (2) -
Class T - -
(39) - -
From net realized gains on investments
and foreign currency transactions (591) -
(630) -
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 14,899 6,467
Shares issued on reinvestment of distributions 453 -
Cost of shares repurchased (4,436) (1,451)
Net increase (decrease) from Class A share
transactions 10,916 5,016
Class B (3)
Proceeds from sale of shares 2,049 -
Shares issued on reinvestment of distributions 8 -
Cost of shares repurchased (139) -
Net increase from Class B share transactions 1,918 -
Class C
Proceeds from sale of shares 3,969 2,407
Shares issued on reinvestment of distributions 148 -
Cost of shares repurchased (4,603) (225)
Net increase (decrease) from Class C share
transactions (486) 2,182
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 9,814 14,217
Net increase (decrease) in net assets 7,645 18,483
Net Assets:
Beginning of period 18,483 -
End of period $26,128 $18,483
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $19,474 $7,198
Undistributed net investment income (loss) (1) 29
Undistributed net realized gain (loss) from
investments and foreign currency transactions 312 476
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 3,319 1,103
Total net assets $23,104 $8,806
Shares of beneficial interest:
Class A
Shares sold 990 589
Shares issued on reinvestment of distributions 34 -
Shares redeemed (297) (128)
Net increase (decrease) in shares outstanding 727 461
Shares outstanding at beginning of
period 461 -
Shares outstanding at end of period 1,188 461
Class B (3)
Shares sold 137 -
Shares issued on reinvestment of distributions 1 -
Shares redeemed (9) -
Net increase in shares outstanding 129 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 129 -
Class C
Shares sold 264 210
Shares issued on reinvestment of distributions 11 -
Shares redeemed (314) (20)
Net increase (decrease) in shares outstanding (39) 190
Shares outstanding at beginning of
period 190 -
Shares outstanding at end of period 151 190
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Global
1996 1995
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(797) $(284)
Net realized gain (loss) on investments and
foreign currency transactions 15,721 1,394
Net unrealized appreciation (depreciation) during
period 9,941 11,284
Net increase (decrease) in net assets resulting
from operations 24,865 12,394
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions (3,252) (3,199)
(3,252) (3,199)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 38,996 20,086
Shares issued on reinvestment of distributions 3,076 2,979
Cost of shares repurchased (20,437) (23,750)
Net increase (decrease) from Class A share
transactions 21,635 (685)
Class B (3)
Proceeds from sale of shares 5,103 -
Shares issued on reinvestment of distributions 6 -
Cost of shares repurchased (418) -
Net increase from Class B share transactions 4,691 -
Class C
Proceeds from sale of shares 6,138 1,228
Shares issued on reinvestment of distributions 132 133
Cost of shares repurchased (2,745) (1,719)
Net increase (decrease) from Class C share
transactions 3,525 (358)
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 29,851 (1,043)
Net increase (decrease) in net assets 51,464 8,152
Net Assets:
Beginning of period 92,964 84,812
End of period $144,428 $92,964
Net Assets consist of:
Shares of beneficial interest, unlimited
shares authorized $106,791 $77,165
Undistributed net investment income (loss) (13) (14)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 12,795 899
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 24,855 14,914
Total net assets $144,428 $92,964
Shares of beneficial interest:
Class A
Shares sold 1,964 1,267
Shares issued on reinvestment of distributions 177 198
Shares redeemed (1,045) (1,525)
Net increase (decrease) in shares outstanding 1,096 (60)
Shares outstanding at beginning of
period 5,042 5,102
Shares outstanding at end of period 6,138 5,042
Class B (3)
Shares sold 257 -
Shares issued on reinvestment of distributions - -
Shares redeemed (20) -
Net increase in shares outstanding 237 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 237 -
Class C
Shares sold 312 78
Shares issued on reinvestment of distributions 8 9
Shares redeemed (140) (110)
Net increase (decrease) in shares outstanding 180 (23)
Shares outstanding at beginning of
period 204 227
Shares outstanding at end of period 384 204
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Growth
1996 1995
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(1,197) $(1,043)
Net realized gain (loss) on investments and
foreign currency transactions 71,706 55,933
Net unrealized appreciation (depreciation) during
period 223,454 81,841
Net increase (decrease) in net assets resulting
from operations 293,963 136,731
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions (116,218) (1,732)
(116,218) (1,732)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 72,429 30,383
Shares issued on reinvestment of distributions 109,915 1,639
Cost of shares repurchased (93,011) (110,904)
Net increase (decrease) from Class A share
transactions 89,333 (78,882)
Class B (3)
Proceeds from sale of shares 4,292 -
Shares issued on reinvestment of distributions 407 -
Cost of shares repurchased (99) -
Net increase from Class B share transactions 4,600 -
Class C
Proceeds from sale of shares 10,618 1,872
Shares issued on reinvestment of distributions 1,761 15
Cost of shares repurchased (6,194) (1,106)
Net increase (decrease) from Class C share
transactions 6,185 781
Class T
Proceeds from sale of shares 646 -
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3 401,271
Shares issued on reinvestment of distributions - -
Cost of shares repurchased (2,536) -
Net increase (decrease) from Class T share
transactions 399,381 -
Total net increase (decrease) from share
transactions 499,499 (78,101)
Net increase (decrease) in net assets 677,244 56,898
Net Assets:
Beginning of period 491,528 434,630
End of period $1,168,772 $491,528
Net Assets consist of:
Shares of beneficial interest, unlimited
shares authorized $806,354 $307,416
Undistributed net investment income (loss) (44) -
Undistributed net realized gain (loss) from
investments and foreign currency transactions 5,735 50,839
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 356,727 133,273
Total net assets $1,168,772 $491,528
Shares of beneficial interest:
Class A
Shares sold 3,212 1,662
Shares issued on reinvestment of distributions 5,188 101
Shares redeemed (4,120) (6,181)
Net increase (decrease) in shares outstanding 4,280 (4,418)
Shares outstanding at beginning of
period 21,273 25,691
Shares outstanding at end of period 25,553 21,273
Class B (3)
Shares sold 193 -
Shares issued on reinvestment of distributions 19 -
Shares redeemed (4) -
Net increase in shares outstanding 208 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 208 -
Class C
Shares sold 463 100
Shares issued on reinvestment of distributions 84 1
Shares redeemed (284) (59)
Net increase (decrease) in shares outstanding 263 42
Shares outstanding at beginning of
period 247 205
Shares outstanding at end of period 510 247
Class T
Shares sold 39 -
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3 26,208
Shares issued on reinvestment of distributions - -
Shares redeemed (115) -
Net increase (decrease) in shares outstanding 26,132 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 26,132 -
Tactical
Asset
C.A.S.E. Allocation
1996 (4) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $175 $31
Net realized gain (loss) on investments and
foreign currency transactions (190) 48
Net unrealized appreciation (depreciation)
during period 103 486
Net increase (decrease) in net assets resulting
from operations 88 565
Distributions to shareholders:
From net investment income:
Class A - (26)
Class B (3) - (1)
Class C - (3)
Class T - -
- (30)
From net realized gains on investments
and foreign currency transactions - -
- (30)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 1,512 7,751
Shares issued on reinvestment of distributions - 25
Cost of shares repurchased (117) (640)
Net increase (decrease) from Class A share
transactions 1,395 7,136
Class B (3)
Proceeds from sale of shares 1,150 5,282
Shares issued on reinvestment of distributions - 1
Cost of shares repurchased (77) (574)
Net increase from Class B share transactions 1,073 4,709
Class C
Proceeds from sale of shares 2,876 7,986
Shares issued on reinvestment of distributions - 3
Cost of shares repurchased (2,264) (3,479)
Net increase (decrease) from Class C share
transactions 612 4,510
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 3,080 16,355
Net increase (decrease) in net assets 3,168 16,890
Net Assets:
Beginning of period - -
End of period $3,168 $16,890
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $3,080 $16,355
Undistributed net investment income (loss) 175 1
Undistributed net realized gain (loss) from
investments and foreign currency transactions (190) 48
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 103 486
Total net assets $3,168 $16,890
Shares of beneficial interest:
Class A
Shares sold 151 728
Shares issued on reinvestment of distributions - 2
Shares redeemed (12) (59)
Net increase (decrease) in shares outstanding 139 671
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 139 671
Class B (3)
Shares sold 113 493
Shares issued on reinvestment of distributions - -
Shares redeemed (7) (53)
Net increase in shares outstanding 106 440
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 106 440
Class C
Shares sold 286 743
Shares issued on reinvestment of distributions - -
Shares redeemed (227) (322)
Net increase (decrease) in shares outstanding 59 421
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 59 421
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Equity-Income
1996 1995 (2)
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $153 $24
Net realized gain (loss) on investments and
foreign currency transactions 346 78
Net unrealized appreciation (depreciation) during
period 810 388
Net increase (decrease) in net assets resulting
from operations 1,309 490
Distributions to shareholders:
From net investment income:
Class A (117) (27)
Class B (3) (6) -
Class C (9) (1)
Class T - -
(132) (28)
From net realized gains on investments
and foreign currency transactions (85) -
(217) (28)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 6,798 5,203
Shares issued on reinvestment of distributions 186 25
Cost of shares repurchased (1,765) (501)
Net increase (decrease) from Class A share
transactions 5,219 4,727
Class B (3)
Proceeds from sale of shares 1,505 -
Shares issued on reinvestment of distributions 9 -
Cost of shares repurchased (42) -
Net increase from Class B share transactions 1,472 -
Class C
Proceeds from sale of shares 1,659 325
Shares issued on reinvestment of distributions 15 1
Cost of shares repurchased (326) (67)
Net increase (decrease) from Class C share
transactions 1,348 259
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 8,039 4,986
Net increase (decrease) in net assets 9,131 5,448
Net Assets:
Beginning of period 5,448 -
End of period $14,579 $5,448
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $13,025 $4,986
Undistributed net investment income (loss) 17 (4)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 339 78
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 1,198 388
Total net assets $14,579 $5,448
Shares of beneficial interest:
Class A
Shares sold 538 483
Shares issued on reinvestment of distributions 15 2
Shares redeemed (140) (45)
Net increase (decrease) in shares outstanding 413 440
Shares outstanding at beginning of
period 440 -
Shares outstanding at end of period 853 440
Class B (3)
Shares sold 118 -
Shares issued on reinvestment of distributions 1 -
Shares redeemed (3) -
Net increase in shares outstanding 116 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 116 -
Class C
Shares sold 130 30
Shares issued on reinvestment of distributions 1 -
Shares redeemed (25) (6)
Net increase (decrease) in shares outstanding 106 24
Shares outstanding at beginning of
period 24 -
Shares outstanding at end of period 130 24
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of period
Shares outstanding at end of period
Balanced
1996 1995 (2)
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $143 $12
Net realized gain (loss) on investments and foreign
currency transactions 1,308 150
Net unrealized appreciation (depreciation) during
period 212 428
Net increase (decrease) in net assets resulting from
operations 1,663 590
Distributions to shareholders:
From net investment income:
Class A (105) (11)
Class B (3) (4) -
Class C (22) (2)
Class T - -
(131) (13)
From net realized gains on investments
and foreign currency transactions (178) -
(309) (13)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 4,106 3,672
Shares issued on reinvestment of distributions 201 11
Cost of shares repurchased (848) (319)
Net increase (decrease) from Class A share
transactions 3,459 3,364
Class B (3)
Proceeds from sale of shares 674 -
Shares issued on reinvestment of distributions 5 -
Cost of shares repurchased (35) -
Net increase from Class B share transactions 644 -
Class C
Proceeds from sale of shares 790 3,134
Shares issued on reinvestment of distributions 94 2
Cost of shares repurchased (3,690) (42)
Net increase (decrease) from Class C share
transactions (2,806) 3,094
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 1,297 6,458
Net increase (decrease) in net assets 2,651 7,035
Net Assets:
Beginning of period 7,035 -
End of period $9,686 $7,035
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $7,755 $6,458
Undistributed net investment income (loss) 9 (1)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 1,282 150
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 640 428
Total net assets $9,686 $7,035
Shares of beneficial interest:
Class A
Shares sold 330 348
Shares issued on reinvestment of distributions 16 1
Shares redeemed (68) (29)
Net increase (decrease) in shares outstanding 278 320
Shares outstanding at beginning of
period 320 -
Shares outstanding at end of period 598 320
Class B (3)
Shares sold 53 -
Shares issued on reinvestment of distributions 1 -
Shares redeemed (3) -
Net increase in shares outstanding 51 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 51 -
Class C
Shares sold 63 297
Shares issued on reinvestment of distributions 8 -
Shares redeemed (294) (4)
Net increase (decrease) in shares outstanding (223) 293
Shares outstanding at beginning of
period 293 -
Shares outstanding at end of period 70 293
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Flexible Income
1996 1995
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $1,245 $1,451
Net realized gain (loss) on investments and foreign
currency transactions 718 (803)
Net unrealized appreciation (depreciation) during
period (710) 1,574
Net increase (decrease) in net assets resulting from
operations 1,253 2,222
Distributions to shareholders:
From net investment income:
Class A (1,143) (1,435)
Class B (3) (14) -
Class C (50) (43)
Class T - -
(1,207) (1,478)
From net realized gains on investments
and foreign currency transactions - -
(1,207) (1,478)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 1,886 1,747
Shares issued on reinvestment of distributions 860 1,089
Cost of shares repurchased (5,517) (5,299)
Net increase (decrease) from Class A share
transactions (2,771) (2,463)
Class B (3)
Proceeds from sale of shares 536 -
Shares issued on reinvestment of distributions 10 -
Cost of shares repurchased (53) -
Net increase from Class B share transactions 493 -
Class C
Proceeds from sale of shares 661 250
Shares issued on reinvestment of distributions 45 36
Cost of shares repurchased (376) (441)
Net increase (decrease) from Class C share
transactions 330 (155)
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (1,948) (2,618)
Net increase (decrease) in net assets (1,902) (1,874)
Net Assets:
Beginning of period 20,344 22,218
End of period $18,442 $20,344
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $21,050 $22,998
Undistributed net investment income (loss) 55 22
Undistributed net realized gain (loss) from
investments and foreign currency transactions (2,788) (3,512)
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 125 836
Total net assets $18,442 $20,344
Shares of beneficial interest:
Class A
Shares sold 204 196
Shares issued on reinvestment of distributions 94 123
Shares redeemed (598) (599)
Net increase (decrease) in shares outstanding (300) (280)
Shares outstanding at beginning of
period 2,158 2,438
Shares outstanding at end of period 1,858 2,158
Class B (3)
Shares sold 59 -
Shares issued on reinvestment of distributions 1 -
Shares redeemed (6) -
Net increase in shares outstanding 54 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 54 -
Class C
Shares sold 71 28
Shares issued on reinvestment of distributions 5 4
Shares redeemed (41) (49)
Net increase (decrease) in shares outstanding 35 (17)
Shares outstanding at beginning of
period 61 78
Shares outstanding at end of period 96 61
Class T
Shares sold
Shares issued in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of period
Shares outstanding at end of period
Income Plus
1996 1995
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $4,738 $5,050
Net realized gain (loss) on investments and foreign
currency transactions 782 (534)
Net unrealized appreciation (depreciation) during
period (491) 5,224
Net increase (decrease) in net assets resulting from
operations 5,029 9,740
Distributions to shareholders:
From net investment income:
Class A (4,531) (4,919)
Class B (3) (29) -
Class C (162) (131)
Class T - -
(4,722) (5,050)
From net realized gains on investments
and foreign currency transactions - (676)
(4,722) (5,726)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 5,858 6,337
Shares issued on reinvestment of distributions 3,194 3,940
Cost of shares repurchased (12,843) (9,434)
Net increase (decrease) from Class A share
transactions (3,791) 843
Class B (3)
Proceeds from sale of shares 941 -
Shares issued on reinvestment of distributions 20 -
Cost of shares repurchased (192) -
Net increase from Class B share transactions 769 -
Class C
Proceeds from sale of shares 1,543 658
Shares issued on reinvestment of distributions 135 124
Cost of shares repurchased (979) (1,020)
Net increase (decrease) from Class C share
transactions 699 (238)
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (2,323) 605
Net increase (decrease) in net assets (2,016) 4,619
Net Assets:
Beginning of period 70,726 66,107
End of period $68,710 $70,726
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $67,160 $69,488
Undistributed net investment income (loss) 332 158
Undistributed net realized gain (loss) from
investments and foreign currency transactions 248 (381)
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 970 1,461
Total net assets $68,710 $70,726
Shares of beneficial interest:
Class A
Shares sold 567 629
Shares issued on reinvestment of distributions 310 401
Shares redeemed (1,244) (952)
Net increase (decrease) in shares outstanding (367) 78
Shares outstanding at beginning of
period 6,638 6,560
Shares outstanding at end of period 6,271 6,638
Class B (3)
Shares sold 91 -
Shares issued on reinvestment of distributions 2 -
Shares redeemed (19) -
Net increase in shares outstanding 74 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 74 -
Class C
Shares sold 150 66
Shares issued on reinvestment of distributions 12 12
Shares redeemed (95) (104)
Net increase (decrease) in shares outstanding 67 (26)
Shares outstanding at beginning of
period 191 217
Shares outstanding at end of period 258 191
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Tax-Exempt
1996 1995
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $1,296 $1,368
Net realized gain (loss) on investments and
foreign currency transactions 222 120
Net unrealized appreciation (depreciation)
during period 3 602
Net increase (decrease) in net assets resulting
from operations 1,521 2,090
Distributions to shareholders:
From net investment income:
Class A (1,284) (1,397)
Class B (3) (4) -
Class C (26) (14)
Class T - -
(1,314) (1,411)
From net realized gains on investments
and foreign currency transactions (164) (91)
(1,478) (1,502)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 1,593 1,594
Shares issued on reinvestment of distributions 965 993
Cost of shares repurchased (5,286) (4,866)
Net increase (decrease) from Class A share
transactions (2,728) (2,279)
Class B (3)
Proceeds from sale of shares 185 -
Shares issued on reinvestment of distributions 2 -
Cost of shares repurchased - -
Net increase from Class B share transactions 187 -
Class C
Proceeds from sale of shares 748 387
Shares issued on reinvestment of distributions 22 10
Cost of shares repurchased (323) (224)
Net increase (decrease) from Class C share
transactions 447 173
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (2,094) (2,106)
Net increase (decrease) in net assets (2,051) (1,518)
Net Assets:
Beginning of period 27,855 29,373
End of period $25,804 $27,855
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $25,361 $27,533
Undistributed net investment income (loss) 49 68
Undistributed net realized gain (loss) from
investments and foreign currency transactions 174 37
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 220 217
Total net assets $25,804 $27,855
Shares of beneficial interest:
Class A
Shares sold 140 143
Shares issued on reinvestment of distributions 85 90
Shares redeemed (466) (438)
Net increase (decrease) in shares outstanding (241) (205)
Shares outstanding at beginning of
period 2,416 2,621
Shares outstanding at end of period 2,175 2,416
Class B (3)
Shares sold 17 -
Shares issued on reinvestment of distributions - -
Shares redeemed - -
Net increase in shares outstanding 17 -
Shares outstanding at beginning of
period - -
Shares outstanding at end of period 17 -
Class C
Shares sold 66 35
Shares issued on reinvestment of distributions 2 1
Shares redeemed (28) (21)
Net increase (decrease) in shares outstanding 40 15
Shares outstanding at beginning of
period 40 25
Shares outstanding at end of period 80 40
Class T
Shares sold
Shares issued in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of period
Shares outstanding at end of period
</TABLE>
(1) Distributions from realized gains and net investment income include
distributions in excess of current earnings.
(2) From commencement of investment operations on December 2, 1994 through
September 30, 1995.
(3) Class B commenced investment operations on October 1, 1995.
(4) From commencement of investment operations on February 1, 1996 through
September 30, 1996.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected per share data for a share of beneficial interest outstanding
throughout each period:
Net Realized
and
Net Asset Unrealized
Year or Value Net Gain (Loss)
Period Beginning Investment on
Ended of Period Income (Loss) Investments
Aggressive Growth
<S> <C> <C> <C> <C> <C>
Class A 09/30/96 (1) $17.68 $(0.15) $(0.76)
09/30/95 (2) 10.00 (0.14) 7.82
Class B 09/30/96 (1) 17.64 (0.23) (0.76)
Class C 09/30/96 (1) 17.64 (0.21) (0.76)
09/30/95 (2) 10.00 (0.18) 7.82
Capital Appreciation
Class A 09/30/96 (3) 13.54 0.06 3.04
09/30/95 (2) 10.00 (0.03) 3.57
Class B 09/30/96 13.49 (0.02) 3.04
Class C 09/30/96 (3) 13.49 - 3.04
09/30/95 (2) 10.00 (0.08) 3.57
Global
Class A 09/30/96 17.73 (0.09) 4.38
09/30/95 15.93 (0.06) 2.42
09/30/94 13.35 (0.04) 2.62
09/30/93 10.00 (0.04) 3.39
Class B 09/30/96 17.57 (0.19) 4.38
Class C 09/30/96 17.46 (0.18) 4.38
09/30/95 15.74 (0.14) 2.42
09/30/94 13.35 (0.23) 2.62
Growth
Class A 09/30/96 22.84 (0.11) 4.66
09/30/95 16.78 (0.05) 6.18
09/30/94 (1,4) 18.46 0.01 (1.22)
09/30/93 16.46 0.04 2.42
09/30/92 16.22 0.08 0.88
Class B 09/30/96 22.64 (0.27) 4.66
Class C 09/30/96 22.64 (0.21) 4.66
09/30/95 16.68 (0.15) 6.18
09/30/94 (1) 18.46 (0.09) (1.22)
Class T 09/30/96 (5) 22.23 - 0.18
C.A.S.E.
Class A 09/30/96 (6) 10.00 0.61 (0.15)
Class B 09/30/96 (6) 10.00 0.56 (0.15)
Class C 09/30/96 (6) 10.00 0.57 (0.15)
Tactical Asset
Allocation
Class A 09/30/96 10.00 0.17 0.94
Class B 09/30/96 10.00 0.09 0.94
Class C 09/30/96 10.00 0.11 0.94
Equity-Income
Class A 09/30/96 11.74 0.57 1.28
09/30/95 (2) 10.00 0.09 1.75
Class B 09/30/96 11.73 0.50 1.28
Class C 09/30/96 11.73 0.52 1.28
09/30/95 (2) 10.00 0.03 1.75
Balanced
Class A 09/30/96 11.47 0.72 1.77
09/30/95 (2) 10.00 0.05 1.47
Class B 09/30/96 11.47 0.63 1.77
Class C 09/30/96 11.47 0.64 1.77
09/30/95 (2) 10.00 0.01 1.47
Flexible Income
Class A 9/30/96 $9.17 $2.23 $(1.63)
9/30/95 8.83 0.61 0.37
9/30/94 (12) 9.59 0.65 (0.81)
9/30/93 8.95 0.70 0.60
10/31/92 8.73 0.80 0.22
Class B 9/30/96 9.17 2.16 (1.63)
Class C 9/30/96 9.17 2.17 (1.63)
9/30/95 8.83 0.56 0.37
9/30/94 9.59 0.60 (0.81)
Income Plus
Class A 9/30/96 10.36 2.72 (1.96)
9/30/95 9.75 0.75 0.71
9/30/94 10.98 0.76 (1.10)
9/30/93 10.55 0.83 0.46
9/30/92 10.04 0.76 0.64
Class B 9/30/96 10.35 2.65 (1.96)
Class C 9/30/96 10.35 2.66 (1.96)
9/30/95 9.74 0.69 0.71
9/30/94 10.98 0.66 (1.10)
Tax-Exempt
Class A 9/30/96 11.34 2.13 (1.48)
9/30/95 11.10 0.55 0.29
9/30/94 12.07 0.56 (0.60)
9/30/93 11.62 0.56 0.45
9/30/92 11.46 0.54 0.28
Class B 9/30/96 11.34 2.06 (1.48)
Class C 9/30/96 11.34 2.10 (1.48)
9/30/95 11.10 0.52 0.29
9/30/94 12.07 0.53 (0.60)
Total Income Dividends Distributions
Year or (Loss) From From Net From Net
Period Investment Investment Realized
Ended Operations Income Capital Gains
Aggressive Growth
Class A 09/30/96 (1) $(0.91) $- $(1.02)
09/30/95 (2) 7.68 - -
Class B 09/30/96 (1) (0.99) - (1.02)
Class C 09/30/96 (1) (0.97) - (1.02)
09/30/95 (2) 7.64 - -
Capital Appreciation
Class A 09/30/96 (3) 3.10 (0.07) (0.82)
09/30/95 (2) 3.54 - -
Class B 09/30/96 3.02 - (0.82)
Class C 09/30/96 (3) 3.04 (0.01) (0.82)
09/30/95 (2) 3.49 - -
Global
Class A 09/30/96 4.29 - (0.62)
09/30/95 2.36 - (0.56)
09/30/94 2.58 - -
09/30/93 3.35 - -
Class B 09/30/96 4.19 - (0.62)
Class C 09/30/96 4.20 - (0.62)
09/30/95 2.28 - (0.56)
09/30/94 2.39 - -
Growth
Class A 09/30/96 4.55 - (5.18)
09/30/95 6.13 - (0.07)
09/30/94 (1,4) (1.21) - (0.47)
09/30/93 2.46 (0.07) (0.39)
09/30/92 0.96 (0.07) (0.65)
Class B 09/30/96 4.39 - (5.18)
Class C 09/30/96 4.45 - (5.18)
09/30/95 6.03 - (0.07)
09/30/94 (1) (1.31) - (0.47)
Class T 09/30/96 (5) 0.18 - -
C.A.S.E.
Class A 09/30/96 (6) 0.46 - -
Class B 09/30/96 (6) 0.41 - -
Class C 09/30/96 (6) 0.42 - -
Tactical Asset Allocation
Class A 09/30/96 1.11 (0.08) -
Class B 09/30/96 1.03 (0.01) -
Class C 09/30/96 1.05 (0.02) -
Equity-Income
Class A 09/30/96 1.85 (0.17) (0.15)
09/30/95 (2) 1.84 (0.10) -
Class B 09/30/96 1.78 (0.09) (0.15)
Class C 09/30/96 1.80 (0.11) (0.15)
09/30/95 (2) 1.78 (0.05) -
Balanced
Class A 09/30/96 2.49 (0.21) (0.28)
09/30/95 (2) 1.52 (0.05) -
Class B 09/30/96 2.40 (0.13) (0.28)
Class C 09/30/96 2.41 (0.14) (0.28)
09/30/95 (2) 1.48 (0.01) -
Flexible Income
Class A 9/30/96 $0.60 $(0.58) $-
9/30/95 0.98 (0.64) -
9/30/94 (12) (0.16) (0.60) -
9/30/93 1.30 (0.66) -
10/31/92 1.02 (0.80) -
Class B 9/30/96 0.53 (0.52) -
Class C 9/30/96 0.54 (0.53) -
9/30/95 0.93 (0.59) -
9/30/94 (0.21) (0.55) -
Income Plus
Class A 9/30/96 0.76 (0.71) -
9/30/95 1.46 (0.75) (0.10)
9/30/94 (0.34) (0.75) (0.14)
9/30/93 1.29 (0.81) (0.05)
9/30/92 1.40 (0.76) (0.13)
Class B 9/30/96 0.69 (0.64) -
Class C 9/30/96 0.70 (0.65) -
9/30/95 1.40 (0.69) (0.10)
9/30/94 (0.44) (0.66) (0.14)
Tax-Exempt
Class A 9/30/96 0.65 (0.56) (0.07)
9/30/95 0.84 (0.56) (0.04)
9/30/94 (0.04) (0.54) (0.39)
9/30/93 1.01 (0.54) (0.02)
9/30/92 0.82 (0.54) (0.12)
Class B 9/30/96 0.58 (0.49) (0.07)
Class C 9/30/96 0.62 (0.53) (0.07)
9/30/95 0.81 (0.53) (0.04)
9/30/94 (0.07) (0.51) (0.39)
Net Asset
Year or Value
Period Total End Total
Ended Distributions of Period Return (7)
Aggressive Growth
Class A 09/30/96 (1) $(1.02) $15.75 (4.91)%
09/30/95 (2) - 17.68 76.80
Class B 09/30/96 (1) (1.02) 15.63 (5.33)
Class C 09/30/96 (1) (1.02) 15.65 (5.22)
09/30/95 (2) - 17.64 76.40
Capital Appreciation
Class A 09/30/96 (3) (0.89) 15.75 24.35
09/30/95 (2) - 13.54 35.40
Class B 09/30/96 (0.82) 15.69 23.63
Class C 09/30/96 (3) (0.83) 15.70 23.81
09/30/95 (2) - 13.49 34.90
Global
Class A 09/30/96 (0.62) 21.40 25.04
09/30/95 (0.56) 17.73 15.47
09/30/94 - 15.93 19.33
09/30/93 - 13.35 33.52
Class B 09/30/96 (0.62) 21.14 24.70
Class C 09/30/96 (0.62) 21.04 24.91
09/30/95 (0.56) 17.46 15.14
09/30/94 - 15.74 17.90
Growth
Class A 09/30/96 (5.18) 22.21 22.41
09/30/95 (0.07) 22.84 36.70
09/30/94 (1,4) (0.47) 16.78 (6.72)
09/30/93 (0.46) 18.46 15.13
09/30/92 (0.72) 16.46 6.10
Class B 09/30/96 (5.18) 21.85 21.87
Class C 09/30/96 (5.18) 21.91 22.15
09/30/95 (0.07) 22.64 36.32
09/30/94 (1) (0.47) 16.68 (7.72)
Class T 09/30/96 (5) - 22.41 0.81
C.A.S.E.
Class A 09/30/96 (6) - 10.46 4.60
Class B 09/30/96 (6) - 10.41 4.10
Class C 09/30/96 (6) - 10.42 4.20
Tactical Asset Allocation
Class A 09/30/96 (0.08) 11.03 11.07
Class B 09/30/96 (0.01) 11.02 10.39
Class C 09/30/96 (0.02) 11.03 10.50
Equity-Income
Class A 09/30/96 (0.32) 13.27 16.00
09/30/95 (2) (0.10) 11.74 18.43
Class B 09/30/96 (0.24) 13.27 15.38
Class C 09/30/96 (0.26) 13.27 15.49
09/30/95 (2) (0.05) 11.73 17.95
Balanced
Class A 09/30/96 (0.49) 13.47 22.12
09/30/95 (2) (0.05) 11.47 15.27
Class B 09/30/96 (0.41) 13.46 21.38
Class C 09/30/96 (0.42) 13.46 21.49
09/30/95 (2) (0.01) 11.47 14.77
Flexible Income
Class A 9/30/96 $(0.58) $9.19 6.73%
9/30/95 (0.64) 9.17 11.57
9/30/94 (12) (0.60) 8.83 (1.54)
9/30/93 (0.66) 9.59 13.66
10/31/92 (0.80) 8.95 12.17
Class B 9/30/96 (0.52) 9.18 5.94
Class C 9/30/96 (0.53) 9.18 6.03
9/30/95 (0.59) 9.17 10.95
9/30/94 (0.55) 8.83 (2.15)
Income Plus
Class A 9/30/96 (0.71) 10.41 7.64
9/30/95 (0.85) 10.36 15.85
9/30/94 (0.89) 9.75 (3.28)
9/30/93 (0.86) 10.98 12.80
9/30/92 (0.89) 10.55 14.40
Class B 9/30/96 (0.64) 10.40 6.95
Class C 9/30/96 (0.65) 10.40 7.05
9/30/95 (0.79) 10.35 15.08
9/30/94 (0.80) 9.74 (4.55)
Tax-Exempt
Class A 9/30/96 (0.63) 11.36 5.89
9/30/95 (0.60) 11.34 7.75
9/30/94 (0.93) 11.10 (0.41)
9/30/93 (0.56) 12.07 8.97
9/30/92 (0.66) 11.62 7.20
Class B 9/30/96 (0.56) 11.36 5.21
Class C 9/30/96 (0.60) 11.36 5.63
9/30/95 (0.57) 11.34 7.48
9/30/94 (0.90) 11.10 (0.73)
<CAPTION>
Net Assets Ratio of Expenses to
Year or End of Average Net Assets (8) (9)
Period Period Without
Ended (000's) Gross Reimbursement Net
Aggressive Growth
<S> <C> <C> <C> <C> <C> <C>
Class A 09/30/96 (1) $22,078 1.85% 2.60% 1.85%
09/30/95 (2) 16,747 2.85 3.35 2.85
Class B 09/30/96 (1) 1,800 2.50 3.25 2.50
Class C 09/30/96 (1) 2,250 2.40 3.15 2.40
09/30/95 (2) 1,736 3.40 3.91 3.40
Capital Appreciation
Class A 09/30/96 (3) 18,713 1.85 2.72 1.85
09/30/95 (2) 6,241 2.90 4.17 2.85
Class B 09/30/96 2,022 2.50 3.37 2.50
Class C 09/30/96 (3) 2,369 2.40 3.27 2.40
09/30/95 (2) 2,565 3.45 4.72 3.40
Global
Class A 09/30/96 131,347 2.09 - 2.06
09/30/95 89,397 2.10 - 1.97
09/30/94 81,241 2.14 - -
09/30/93 17,430 2.84 3.65 -
Class B 09/30/96 5,000 2.74 - 2.71
Class C 09/30/96 8,081 2.64 - 2.61
09/30/95 3,567 2.65 - 2.52
09/30/94 3,571 4.04 - -
Growth
Class A 09/30/96 567,564 1.83 - 1.82
09/30/95 485,935 1.86 - 1.84
09/30/94 (1,4) 431,207 1.76 - -
09/30/93 548,564 1.61 - -
09/30/92 403,361 1.61 - -
Class B 09/30/96 4,536 2.46 - 2.45
Class C 09/30/96 11,167 2.34 - 2.33
09/30/95 5,593 2.41 - 2.38
09/30/94 (1) 3,423 3.48 - -
Class T 09/30/96 (5) 585,505 1.18 - 1.17
C.A.S.E.
Class A 09/30/96 (6) 1,455 2.85 5.89 2.85
Class B 09/30/96 (6) 1,100 3.50 6.54 3.50
Class C 09/30/96 (6) 613 3.40 6.44 3.40
Tactical Asset Allocation
Class A 09/30/96 7,401 2.85 3.20 2.85
Class B 09/30/96 4,848 3.50 3.85 3.50
Class C 09/30/96 4,641 3.40 3.75 3.40
Equity-Income
Class A 09/30/96 11,314 1.85 2.79 1.79
09/30/95 (2) 5,167 2.99 4.57 2.85
Class B 09/30/96 1,537 2.50 3.44 2.44
Class C 09/30/96 1,728 2.40 3.34 2.34
09/30/95 (2) 281 3.54 5.12 3.40
Balanced
Class A 09/30/96 8,056 1.85 3.11 1.85
09/30/95 (2) 3,670 2.92 4.48 2.85
Class B 09/30/96 687 2.50 3.76 2.50
Class C 09/30/96 943 2.40 3.66 2.40
09/30/95 (2) 3,365 3.47 5.03 3.40
Flexible Income
Class A 9/30/96 $17,065 1.85% 2.07% 1.85%
9/30/95 19,786 1.87 1.94 1.85
9/30/94 (12) 21,527 1.85 2.13 -
9/30/93 29,232 1.50 1.56 -
10/31/92 26,676 1.50 1.66 -
Class B 9/30/96 494 2.50 2.72 2.50
Class C 9/30/96 883 2.40 2.62 2.40
9/30/95 558 2.42 2.49 2.40
9/30/94 691 2.40 8.59 -
Income Plus
Class A 9/30/96 65,252 1.33 - 1.31
9/30/95 68,746 1.29 - 1.26
9/30/94 63,995 1.33 - -
9/30/93 72,401 1.33 - -
9/30/92 54,647 1.17 - -
Class B 9/30/96 774 1.98 - 1.96
Class C 9/30/96 2,684 1.88 - 1.86
9/30/95 1,980 1.84 - 1.81
9/30/94 2,112 3.52 - -
Tax-Exempt
Class A 9/30/96 24,708 1.00 1.46 1.00
9/30/95 27,401 1.02 1.35 1.00
9/30/94 29,096 1.00 1.30 -
9/30/93 30,717 1.00 1.43 -
9/30/92 28,363 1.00 1.20 -
Class B 9/30/96 189 1.65 2.11 1.65
Class C 9/30/96 907 1.25 1.71 1.25
9/30/95 454 1.27 1.60 1.25
9/30/94 277 1.25 20.88 -
<CAPTION>
Investment
Year or Income (Loss) Portfolio Average
Period to Average Turnover Commission
Ended Net Assets (9) Rate (10) Rate (11)
Aggressive Growth
<S> <C> <C> <C> <C> <C>
Class A 09/30/96 (1) (1.15)% 127.49% $0.0715
09/30/95 (2) (2.39) 88.28 -
Class B 09/30/96 (1) (1.80) 127.49 0.0715
Class C 09/30/96 (1) (1.70) 127.49 0.0715
09/30/95 (2) (2.94) 88.28 -
Capital Appreciation
Class A 09/30/96 (3) (0.35) 160.72 0.0369
09/30/95 (2) 0.75 262.97 -
Class B 09/30/96 (1.00) 160.72 0.0369
Class C 09/30/96 (3) (0.90) 160.72 0.0369
09/30/95 (2) 0.20 262.97 -
Global
Class A 09/30/96 (0.67) 97.94 0.0489
09/30/95 (0.43) 161.48 -
09/30/94 (0.55) 148.01 -
09/30/93 (0.87) 116.98 -
Class B 09/30/96 (1.32) 97.94 0.0489
Class C 09/30/96 (1.22) 97.94 0.0489
09/30/95 (0.98) 161.48 -
09/30/94 (2.46) 148.01 -
Growth
Class A 09/30/96 (0.22) 57.80 0.0385
09/30/95 (0.26) 123.26 -
09/30/94 (1,4) 0.04 63.73 -
09/30/93 0.29 97.40 -
09/30/92 0.69 56.21 -
Class B 09/30/96 (0.86) 57.80 0.0385
Class C 09/30/96 (0.77) 57.80 0.0385
09/30/95 (0.81) 123.26 -
09/30/94 (1) (1.68) 63.73 -
Class T 09/30/96 (5) 0.36 57.80 0.0385
C.A.S.E.
Class A 09/30/96 (6) 10.00 654.49 0.0396
Class B 09/30/96 (6) 9.35 654.49 0.0396
Class C 09/30/96 (6) 9.45 654.49 0.0396
Tactical Asset
Allocation
Class A 09/30/96 0.72 56.22 0.0828
Class B 09/30/96 0.07 56.22 0.0828
Class C 09/30/96 0.17 56.22 0.0828
Equity-Income
Class A 09/30/96 1.67 40.58 0.0622
09/30/95 (2) 0.85 34.67 -
Class B 09/30/96 1.02 40.58 0.0622
Class C 09/30/96 1.12 40.58 0.0622
09/30/95 (2) 0.30 34.67 -
Balanced
Class A 09/30/96 1.87 175.78 0.0443
09/30/95 (2) 0.56 82.48 -
Class B 09/30/96 1.22 175.78 0.0443
Class C 09/30/96 1.32 175.78 0.0443
09/30/95 (2) 0.01 82.48 -
Flexible Income
Class A 9/30/96 6.46% 135.38% $-
9/30/95 7.03 149.58 -
9/30/94 (12) 6.57 105.40 -
9/30/93 7.76 138.86 -
10/31/92 8.55 140.23 -
Class B 9/30/96 5.81 135.38 -
Class C 9/30/96 5.91 135.38 -
9/30/95 6.48 149.58 -
9/30/94 6.03 105.40 -
Income Plus
Class A 9/30/96 6.89 65.96 -
9/30/95 7.53 25.07 -
9/30/94 7.35 48.12 -
9/30/93 7.73 54.51 -
9/30/92 8.79 91.01 -
Class B 9/30/96 6.24 65.96 -
Class C 9/30/96 6.34 65.96 -
9/30/95 6.98 25.07 -
9/30/94 5.16 48.12 -
Tax-Exempt
Class A 9/30/96 4.88 71.05 -
9/30/95 4.83 126.48 -
9/30/94 4.83 59.84 -
9/30/93 4.83 91.03 -
9/30/92 5.49 106.89 -
Class B 9/30/96 4.23 71.05 -
Class C 9/30/96 4.63 71.05 -
9/30/95 4.58 126.48 -
9/30/94 4.58 59.84 -
</TABLE>
Notes to Financial Highlights
(1) Distributions from net realized capital gains include distributions in
excess of current net realized capital gains.
(2) From commencement of operations, December 2, 1994.
(3) Dividends from net investment income include distributions in excess of
current net investment income.
(4) On October 1, 1993, Growth changed its distribution rate to 0.35% from
0.25%.
(5) From commencement of operations, September 20, 1996.
(6) From commencement of operations, February 1, 1996.
(7) Total return has been calculated for the period ended September 30, 1996
without deduction of a sales load, if any, on an initial purchase for Class A or
Class T shares. Short periods (where applicable) are not annualized.
(8) Ratio of expenses to average net assets include:
Gross expenses (expenses less amounts waived/reimbursed by the
investment adviser)
Without reimbursement expenses (expenses without waived/reimbursed
amounts by the investment adviser)
Net expenses (expenses less amounts waived/reimbursed by the investment
adviser and reduced by affiliated brokerage and custody earnings credits)
(9) Short periods (where applicable) are annualized.
(10) This rate is calculated by dividing the lesser of the Portfolio's
respective long-term purchases or sales by the average value of its long-term
investments during
the period. Growth's acquisition of investment securities of IDEX Fund
and IDEX Fund 3 has been eliminated from the September 30, 1996 portfolio
turnover
calculation. Short periods (where applicable) are not annualized.
(11) This rate is calculated by dividing total commissions paid on purchases and
sales of securities during the period by total shares purchased or sold in those
same transactions and is reported for periods ended September 30, 1996
and forward to the extent that commissionable trades constitute more than 10% of
the
average net assets for the period.
(12) On October 1, 1993, Flexible Income Class A initiated a 12b-1 plan of
distribution.
IDEX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
NOTE 1. Organization:
IDEX Series Fund ("IDEX Series") is a Massachusetts business trust registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company. IDEX Series is comprised of eleven
portfolios (each a "Portfolio" and collectively the "Portfolios"): IDEX
Aggressive Growth Portfolio ("Aggressive Growth"), IDEX Capital Appreciation
Portfolio ("Capital Appreciation"), IDEX Global Portfolio ("Global"), IDEX
Growth Portfolio ("Growth"), IDEX C.A.S.E. Portfolio ("C.A.S.E."), IDEX
Tactical Asset Allocation Portfolio ("Tactical Asset Allocation"), IDEX
Equity-Income Portfolio ("Equity-Income"), IDEX Balanced Portfolio
("Balanced"), IDEX Flexible Income Portfolio ("Flexible Income"), IDEX
Income Plus Portfolio ("Income Plus"), and IDEX Tax-Exempt Portfolio
("TaxExempt"). All Portfolios are diversified except Capital
Appreciation.
Aggressive Growth, Capital Appreciation, Balanced and Equity-Income commenced
investment operations on December 2, 1994. Tactical Asset Allocation and
C.A.S.E. commenced investment operations on October 1, 1995 and February 1,
1996, respectively. On September 20, 1996, IDEX II Series Fund changed its
name to IDEX Series Fund.
Each Portfolio of IDEX Series is authorized to offer investors a choice of
three classes of shares (four classes of shares for Growth; Class T shares is
closed to new investors), each with a public offering price that reflects
different sales charges, if any, and expense levels. Each class of shares
has equal rights with respect to portfolio assets and voting privileges.
Each class has exclusive rights with respect to its distribution plan or any
other matters involving only that class. Income, non-class specific
expenses, realized and unrealized gains and losses are allocated daily to
each class of shares based on a simultaneous equation methodology. Dividends
and other distributions are calculated in a similar manner and are paid at
the same time for each class of shares.
On September 20, 1996, Growth acquired all the net assets of IDEX Fund and
IDEX Fund 3 pursuant to a plan of reorganization approved by the shareholders
of IDEX Fund and IDEX Fund 3 on September 16, 1996. The acquisition was
accomplished by a tax-free exchange of 26,208,265 shares of Growth Portfolio
Class T (Valued at $582,705,330) for the 17,475,657 and 10,165,001 shares of
IDEX Fund and IDEX Fund 3, respectively, outstanding on September 20, 1996.
The net assets of IDEX Fund and IDEX Fund 3 ($399,060,417 and $182,740,970,
respectively), including $190,375,384 of appreciation and $8,828,848 of
depreciation of the combined investments of IDEX Fund and IDEX Fund 3, were
combined with those of the Growth Portfolio. The aggregate net assets of the
Growth Portfolio immediately after the acquisition aggregated $1,162,128,057.
On October 1, 1996, IDEX Series Fund changed its fiscal year end from
September
30 to October 31.
NOTE 2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed
consistently by the Portfolios in the preparation of their financial
statements; the policies are in conformity with generally accepted accounting
principles.
A.Security valuations: Investments of the Portfolios traded on a national
securities exchange and the NASDAQ National Market System are stated at the
last reported sales price on the day of valuation; securities traded in the
over-the-counter market and listed securities for which no sale was reported
on that date are valued at the last quoted bid price. Foreign securities are
converted to U.S. dollars using exchange rates at the close of the New York
Stock Exchange. Long-term debt securities are valued by major independent
providers of pricing services. Short-term debt securities are valued at
amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such manner as the sub-advisers, under the supervision of the Board of
Trustees, decide in good faith.
B.Security transactions and related investment income: Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). Securities gains and losses are calculated on the specific
identification basis and dividend income is recorded on the ex-dividend date
for both financial and Federal tax reporting purposes; interest income is
recorded on the accrual basis, including amortization of premium and
discount. Original issue discount (as defined in the Internal Revenue Code)
and market premium and discount are amortized for both financial and Federal
tax reporting purposes over the remaining life of the related bonds.
C.Foreign currency translation: Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated
at the exchange rate in effect when the investment was acquired. The
Portfolios combine fluctuations from currency exchange rates and fluctuations
in market value when computing net realized and unrealized gain or loss from
investments. Transaction gains or losses resulting from changes in exchange
rates during the reporting period or upon settlement of the foreign currency
transactions are reported in the Statement of Operations for the current
period. Foreign denominated assets and the use of forward contracts may
involve risks not typically associated with domestic transactions, including
unanticipated movements in exchange rates, the degree of government
supervision and regulation of security markets, and the possibility of
political or economic instability.
D.Federal taxes: It is the policy of the Portfolios to distribute all income
and realized net capital gains to shareholders and otherwise qualify as
regulated investment companies under Subchapter M of the Internal Revenue
Code. In addition, the Portfolios intend to pay distributions as required to
avoid excise taxes. Accordingly, no provisions have been made for Federal
taxes.
E.Distributions to shareholders: Dividends and distributions are recorded by
the Portfolios on the ex-dividend date. Income and capital gain
distributions are determined in accordance with Federal income
tax
regulations which may differ from generally accepted accounting principles.
Accordingly, permanent book and tax basis differences relating to Portfolio
earnings and shareholder distributions are reclassified as necessary among
components of net assets. Additionally, certain amounts have been
reclassified between undistributed net investment income and undistributed
net realized gains to more appropriately conform financial accounting and tax
characterizations of dividend distributions.
F.Estimates: 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 in
the financial statements. Actual results could differ from those
estimates.
NOTE 3. Investment Advisory and Other Payments To/From Affiliates:
Idex Management, Inc. ("IMI") is the investment adviser for
Capital
Appreciation, Global, Growth, Balanced and Flexible Income; InterSecurities,
Inc. ("ISI") is the investment adviser for Aggressive Growth, C.A.S.E.,
Tactical Asset Allocation, Equity-Income, Income Plus and Tax-Exempt. In
addition, ISI is the Portfolios' underwriter. Idex Investor Services, Inc.
("IIS") is the Portfolios' transfer agent. IMI is owned equally by AUSA
Holding Company ("AUSA") and Janus Capital Corporation ("JCC"). ISI and IIS
are 100% owned by AUSA. AUSA is a wholly-owned subsidiary of AEGON N.V., a
Netherlands corporation.
Each eligible Trustee of the IDEX Series who is not an officer or affiliated
person as defined under the Investment Company Act of 1940, as amended, may
elect to participate in the Deferred Compensation Plan for Trustees of IDEX
Series Fund (the Plan). Under the Plan, such Trustees may elect to defer
payment of a percentage of their total fees earned as a Trustee of the Fund.
These deferred amounts may be invested in any Portfolio of the IDEX Series.
Invested plan amounts are included in other assets. The total liability for
deferred compensation to Trustees under the Plan at September 30, 1996 is
included in other liabilities in the accompanying Statement of Assets and
Liabilities and was as follows:
Aggressive Growth $ 981 Equity-Income $ 545
Capital Appreciation 867 Balanced 364
Global 5,425 Flexible Income 697
Growth 43,971 Income Plus 2,583
C.A.S.E. 118 Tax-Exempt 971
Tactical Asset Allocation 628 Total 57,150
Under each Portfolio's Management and Investment Advisory Agreement, the
Portfolios pay management fees based upon average daily net assets to their
respective investment advisers. The Portfolios will be reimbursed by their
advisers to the extent that certain operating expenses exceed the lesser of a
stated annual limitation or any limitation imposed by the most restrictive
state law. The Portfolios have a 12b-1 distribution plan under the 1940 Act
pursuant to which an annual fee based on daily net assets is paid to ISI for
various disbursements such as broker-dealer account servicing fees and other
promotional expenses of the Portfolios. The 12b-1 fee for all Portfolios is
comprised of a 0.25% service fee and the remaining amount is an asset-based
sales charge/distribution fee. The Portfolios reimburse IIS for transfer
agent expenses and pay fees which include a monthly per open account fee of
$1.2583 plus $2.63 for each new account opened.
<TABLE>
<CAPTION>
For the period ended September 30, 1996:
Mgmt Exp 12b-1 Fees ISI Underwriter Cntngnt
Fee(1) Limit(2) Cls A Cls B Cls C Received Retained Sales
Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aggressive
Growth 1.00% 1.50% 0.35% 1.00% 0.90% $ 479,802 $65,924 $ 697
Capital
Appreciat 1.00% 1.50% 0.35% 1.00% 0.90% 395,205 60,768 2,616
Global 1.00% 2.00% 0.35% 1.00% 0.90% 938,340 139,197 16,451
Growth 1.00% 1.50% 0.35% 1.00% 0.90% 2,033,743 296,565 982
C.A.S.E. 1.00% 2.50% 0.35% 1.00% 0.90% 36,903 5,443 -
Tactical
Asset
Allocation 1.00% 2.50% 0.35% 1.00% 0.90% 234,546 35,552 18,101
Equity-
Income 1.00% 1.50% 0.35% 1.00% 0.90% 200,817 30,970 607
Balanced 1.00% 1.50% 0.35% 1.00% 0.90% 128,544 20,474 564
Flexible
Income 0.90% 1.50% 0.35% 1.00% 0.90% 36,139 5,837 103
Income Plus 0.60% 1.25% 0.35% 1.00% 0.90% 167,267 29,744 163
Tax-Exempt 0.60% 0.65% 0.35% 1.00% 0.60% 50,307 8,771 -
</TABLE>
(1) The rates for Aggressive Growth, Capital Appreciation, Global, Growth,
C.A.S.E., Tactical Asset Allocation, Equity-Income, and Balanced apply to the
first $750 million in average net assets. The rate for Flexible Income applies
to the first $100 million in average net assets.
(2) The rate for Global, C.A.S.E. and Tactical Asset Allocation is 2.50% on
the first $30 million, 2.00% on the next $70 million and 1.50% of average net
assets thereafter.
(3) Underwriter commissions relate only to front-end sales charges imposed for
Class A and Class T Shares and contingent deferred sales charges imposed on
Class B share redemptions.
NOTE 4. Investment Transactions:
The cost of securities purchased and proceeds from securities sold (excluding
non-U.S. Government short-term securities) for the period ended September 30,
1996 were as follows:
<TABLE>
<CAPTION>
Non-U.S. Non-U.S.
Government Government Government Government
purchases sales purchases sales
<S> <C> <C> <C> <C>
Aggressive Growth $ 32,001,981 $27,998,288 $ 12,978,673 $ 13,000,000
Capital Appreciation 33,838,075 21,961,620 14,473,602 14,396,618
Global 132,450,341 106,803,965 837,093 397,413
Growth 571,130,801 322,622,766 - 42,692,146
C.A.S.E. 17,314,608 15,099,310 - -
Tactical Asset
Allocation 12,531,855 3,165,827 5,571,803 1,643,531
Equity-Income 10,633,985 2,755,648 1,297,057 948,512
Balanced 13,088,805 12,493,165 6,314,758 5,693,845
Flexible Income 22,410,066 23,790,821 5,222,668 6,054,866
Income Plus 46,066,600 40,298,417 - -
Tax-Exempt 18,668,814 22,088,187 - -
</TABLE>
NOTE 5. Futures, Forward Currency Contracts And Other Derivative
Transactions:
When a Portfolio enters into a stock index or U.S. Treasury securities
futures contract, the Portfolio is required to pledge to the broker an amount
of U.S. Government securities, equal to a portion of the contract's value, as
"initial margin" on the contract. Subsequently, the Portfolio receives or
makes delivery of cash equal to a specific dollar amount times the difference
between the stock index value (or for Treasury securities futures, the
per-contract value) at the close of the valuation day and the contract's
opening strike price. These payments, called "variation margin", are
recorded by the Portfolio as unrealized gains or losses. To
the extent
variation margin is unsettled and is due to or owed by the Portfolio on open
futures contracts, a receivable or payable will exist and is included in
other assets in the Statement of Assets and Liabilities and indicated in the
Schedule of Investments. When a futures contract expires or is closed, the
Portfolio may realize a gain or loss. Realized net gains (losses) on futures
contracts for the fiscal year ended September 30, 1996 were $ 322,621,
$(17,020), and $1,252 for Global, Flexible Income, and Capital Appreciation
respectively.
Forward foreign currency contracts are contracts for delayed delivery of
financial interests in which the seller agrees to make delivery at a
specified future date of a specified financial instrument, at a
specified price or yield. Risks arise from changes in the market value
of theunderlying instruments and from the possible inability of
counterparties to meet the terms of their contracts.
Forward foreign currency contracts are valued at the forward rate, and are
marked to market daily. The change in market value is recorded by a
Portfolio as an unrealized gain or loss. When the contract is closed, the
Portfolio records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it
was closed.
NOTE 6. Information for Federal Income Tax Purposes:
<TABLE>
<CAPTION>
At September 30, 1996:
Realized
net
capital
gain
(loss)
for the
period Net
ended Cost of Unrealized Unrealized unrealized
September securities appreciation depreciation appreciation
30, 1996
<S> <C> <C> <C> <C> <C>
Aggressive
Growth 1,485,442 22,821,096 4,222,230 443,142 3,779,088
Capital
Apprec 374,355 20,655,138 3,575,526 277,191 3,298,335
Global 14,429,674 118,817,210 26,349,116 1,776,032 24,573,084
Growth 71,812,215 816,993,460 371,864,389 15,608,220 356,256,169
C.A.S.E. (189,837) 2,838,455 162,153 59,406 102,747
Tactical
Asset
Allocat 50,906 16,140,067 693,439 210,272 483,167
Equity-
Income 346,455 13,282,048 1,321,166 123,402 1,197,764
Balanced 1,309,126 9,059,074 743,571 101,604 641,967
Flexible
Income 709,496 18,018,695 323,262 189,205 134,057
Income Plus 781,560 66,002,230 2,395,982 1,425,623 970,359
Tax-Exempt 221,805 24,283,313 334,608 114,435 220,173
</TABLE>
Realized net capital gains available to distribute will be paid to
shareholders in December, 1996. Capital loss carryforwards utilized by
Flexible Income and Income Plus during the year ended September 30, 1996 were
$84,843 and $158,472, respectively. Capital loss carryforwards for Flexible
Income aggregated $2,797,404 and are available to offset future realized net
capital gains through October 31, 1997; of this amount, $480,919 is available
through October 31, 1998 and $188,609 is available through October 31, 2002.
Aggressive Growth and C.A.S.E. will elect to treat approximately $2,808,502
and $189,837, respectively, of net capital losses incurred subsequent to
October 31, 1995 as having been incurred in the following fiscal period (post
October losses). Flexible Income and C.A.S.E. will make net capital gain
distributions in future years to the extent that net capital gains are
realized in excess of available loss carryforwards.
IDEX Series Fund
Report of Independent Accountants
To the Trustees and Shareholders of
IDEX Series Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the portfolios constituting
IDEX Series Fund (hereafter referred to as the "Fund") at September 30, 1996,
the results of each of their operations, the changes in each of their net assets
and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at September 30, 1996 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
November 8, 1996
<TABLE>
<CAPTION>
Management Discussion & Analysis *
IDEX Series Fund
Average Annual Total Returns For the Period Ended 10/31/96**
From Inception
1 year 5 year 10 year Inception Date
<S> <C> <C> <C> <C> <C>
Aggressive Growth
Class A (1.24)% - - 30.99 % 12/2/94
Class A *** (6.68)% - - 27.19 % 12/2/94
Class B (1.62)% - - (5.20)% 10/1/95
Class B *** (6.62)% - - (9.84)% 10/1/95
Class C (1.56)% - - 30.54 % 12/2/94
Capital Appreciation
Class A 24.61 % - - 30.08 % 12/2/94
Class A *** 17.79 % - - 26.31 % 12/2/94
Class B 23.99 % - - 19.67 % 10/1/95
Class B *** 18.99 % - - 15.12 % 10/1/95
Class C 24.07 % - - 29.50 % 12/2/94
Global
Class A 29.22 % - - 22.60 % 10/1/92
Class A *** 22.11 % - - 20.94 % 10/1/92
Class B 28.97 % - - 22.51 % 10/1/95
Class B *** 23.97 % - - 17.97 % 10/1/95
Class C 29.14 % - - 18.49 % 10/1/93
Growth
Class A 19.52 % 12.74 % 17.23 % 16.49 % 5/8/86
Class A *** 12.93 % 11.47 % 16.56 % 15.86 % 5/8/86
Class B 19.16 % - - 18.74 % 10/1/95
Class B *** 14.16 % - - 14.19 % 10/1/95
Class C 19.17 % - - 14.50 % 10/1/93
Class T **** 21.70 % 13.04 % 17.11 % 17.33 % 9/20/96
Class T *** 11.35 % 11.05 % 16.07 % 16.42 % 9/20/96
C.A.S.E.
Class A - - - 5.60 % 2/1/96
Class A *** - - - (0.19)% 2/1/96
Class B - - - 5.10 % 2/1/96
Class B *** - - - 0.10 % 2/1/96
Class C - - - 5.20 % 2/1/96
Tactical Asset Allocation
Class A 13.82 % - - 11.64 % 10/1/95
Class A *** 7.52 % - - 5.99 % 10/1/95
Class B 13.14 % - - 10.92 % 10/1/95
Class B *** 8.14 % - - 6.34 % 10/1/95
Class C 13.25 % - - 11.01 % 10/1/95
Equity-Income
Class A 17.60 % - - 18.28 % 12/2/94
Class A *** 11.16 % - - 15.34 % 12/2/94
Class B 16.87 % - - 15.27 % 10/1/95
Class B *** 11.87 % - - 10.71 % 10/1/95
Class C 16.98 % - - 18.13 % 12/2/94
Balanced
Class A 21.95 % - - 20.10 % 12/2/94
Class A *** 15.29 % - - 16.62 % 12/2/94
Class B 21.12 % - - 20.45 % 10/1/95
Class B *** 16.12 % - - 15.91 % 10/1/95
Class C 21.32 % - - 19.45 % 12/2/94
Flexible Income
Class A 7.28 % 9.05 % - 8.19 % 6/29/87
Class A *** 2.20 % 7.98 % - 7.57 % 6/29/87
Class B 6.48 % - - 7.43 % 10/1/95
Class B *** 1.48 % - - 2.84 % 10/1/95
Class C 6.58 % - - 5.28 % 10/1/93
Income Plus
Class A 10.21 % 10.08 % 9.65 % 10.76 % 6/14/85
Class A *** 5.02 % 9.01 % 9.11 % 10.29 % 6/14/85
Class B 9.56 % - - 8.92 % 10/1/95
Class B *** 4.56 % - - 4.33 % 10/1/95
Class C 9.61 % - - 6.27 % 10/1/93
Tax-Exempt
Class A 5.23 % 7.28 % 6.56 % 7.94 % 4/1/85
Class A *** 0.24 % 2.20 % 6.04 % 7.49 % 4/1/85
Class B 4.65 % - - 5.48 % 10/1/95
Class B *** (0.35)% - - 0.88 % 10/1/95
Class C 4.97 % - - 4.20 % 10/1/93
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
<S> <C> <C>
Shares Description Value
COMMON STOCK (96.1%)
Basic Materials (1.7%)
Aluminum (0.9%)
8,000 Titanium Metals Corp. * $246,000
Mining (0.8%)
4,400 Case Corp. 204,600
Consumer Cyclical (16.1%)
Clothing/Fabric (3.4%)
4,400 Cintas Corp. 256,300
5,700 Gucci Group N.V. # 393,300
4,400 Tommy Hilfiger Corp. * 228,800
878,400
Entertainment (1.9%)
18,000 International Game Technology 380,250
5,000 Mirage Resorts, Inc. * 110,000
490,250
Footwear (1.6%)
5,000 Nike, Inc. Class B 294,375
2,500 Nine West Group, Inc. * 124,688
419,063
Home Construction (0.9%)
13,300 Clayton Homes, Inc. 224,437
Recreation Products - Other (0.3%)
6,000 Oakley, Inc. * 89,250
Restaurants (2.3%)
8,200 Boston Chicken, Inc. * 298,275
10,000 Lone Star Steakhouse & Saloon, Inc. * 256,250
2,400 Outback Steakhouse, Inc. * 55,650
610,175
Retailers - Broadline (0.9%)
8,000 Dollar General Corp. 222,000
Retailers - Drug Based (0.5%)
4,000 Rite Aid Corp. 136,000
Retailers - Specialty (4.3%)
14,000 Home Depot, Inc. 766,500
26,700 OfficeMax Inc. * 360,450
1,126,950
Consumer Non-Cyclical (14.7%)
Consumer Services (4.7%)
9,750 CUC International, Inc. * 238,875
10,300 Loewen Group, Inc. 408,138
20,400 Service Corp. International 581,400
1,228,413
Food Retailers (0.6%)
3,500 Safeway, Inc. * 150,063
Healthcare (1.7%)
6,900 Columbia / HCA Healthcare Corp. 246,675
5,850 PhyCor, Inc. * 181,350
428,025
Household Products (0.5%)
1,500 Colgate-Palmolive Company $138,000
Medical Supplies (0.3%)
2,000 Target Therapeutics, Inc. * 74,000
Pharmaceuticals (6.9%)
8,700 Astra AB A-Free # 399,112
1,200 Bristol-Myers Squibb Company, Inc. 126,900
6,000 Eli Lilly and Company 423,000
2,484 Johnson & Johnson 122,337
4,100 Merck & Company, Inc. 303,912
3,500 Pfizer, Inc. 289,625
2,100 Warner-Lambert Company, Inc. 133,612
1,798,498
Energy (4.1%)
Oilfield Equipment and Services
4,800 Halliburton Company 271,800
5,200 Schlumberger Ltd. 515,450
4,000 Smith International, Inc. * 152,000
3,000 Tidewater, Inc. 131,250
1,070,500
Financial (11.4%)
Banks (5.1%)
8,000 Chase Manhattan Corp. 686,000
5,300 Citicorp 524,700
3,000 MBNA Corp. 113,250
1,323,950
Diversified (2.5%)
5,000 Equifax, Inc. 148,750
20,000 The Money Store, Inc. 515,000
663,750
Insurance (2.7%)
6,500 American International Group, Inc. 706,063
Securities Brokers (0.5%)
5,000 Charles Schwab Corp. 125,000
Real Estate (0.6%)
4,000 Green Tree Financial Corp. 158,500
Industrial (6.2%)
Electronic Components & Equipment (0.4%)
4,500 Cable Design Technologies Corp. * 117,000
Diversified (2.9%)
18,800 Monsanto Company 744,950
Pollution Control (2.9%)
13,000 U.S.A. Waste Services, Inc. * 416,000
10,000 United Waste Systems, Inc. * 343,750
759,750
Technology (40.8%)
Advanced Medical Devices (2.5%)
4,000 Guidant Corp. 184,500
4,000 Hologic, Inc. * 91,000
4,000 Medtronic, Inc. 257,500
4,500 VISX, Inc. * 113,625
646,625
Aerospace/Defense (5.3%)
5,300 The Boeing Company $505,487
5,500 Gulfstream Aerospace Corp. * 129,937
8,200 McDonnell Douglas Corp. 446,900
7,500 Sundstrand Corp. 301,875
1,384,199
Biotechnology (1.7%)
3,800 Amgen, Inc. * 232,988
5,000 IDEXX Laboratories Inc. * ^ 196,250
429,238
Communications (11.0%)
4,100 Ascend Communications, Inc. * 268,037
2,600 Cascade Communications Corp. * 188,825
13,400 Cisco Systems, Inc. * 829,125
9,375 Glenayre Technologies, Inc. * 241,406
6,000 LCI International, Inc. * 191,250
2,300 Lucent Technologies, Inc. 108,100
1,700 PairGain Technologies, Inc. * 117,088
9,000 PictureTel Corp. * 243,000
4,000 QUALCOMM, Inc. * 159,000
3,500 Telecomunicacoes Brasileiras S.A. # 260,750
3,000 Tellabs, Inc. * 255,375
2,861,956
Computers (5.5%)
8,000 3Com Corp. * 541,000
8,600 Adaptec, Inc. * 523,525
6,200 Sun Microsystems, Inc. * 378,200
1,442,725
Diversified (2.9%)
9,592 First Data Corp. 764,963
Industrial Technology (0.6%)
5,000 Input/Output, Inc. * 148,750
Office Equipment (0.5%)
3,000 Xerox Corp. 139,125
Semiconductors (4.9%)
4,900 Altera Corp. $303,800
7,600 Intel Corp. 835,050
4,000 Maxim Integrated Products, Inc. * 140,000
1,278,850
Software (5.9%)
5,500 Compuware Corp. * 290,125
3,600 Electronics For Imaging, Inc. * 259,200
18,300 Informix Corp. * 406,031
6,000 Medic Computer Systems, Inc. * 169,500
2,000 Microsoft Corp. * 274,500
2,900 Parametric Technology Corp. * 141,737
1,541,093
Utilities (1.1%)
Telephone
11,300 WorldCom, Inc. * 275,437
Total Common Stock (cost $21,543,459) 25,046,548
NON-CONVERTIBLE PREFERRED STOCK (0.6%)
Technology
Diversified
3,100 Nokia Corp. # (cost $146,242) 143,763
<CAPTION>
Principal Description Value
<S> <C> <C>
COMMERCIAL PAPER (2.3%)
$300,000 Bancomer
5.260%, 11-8-96 299,693
300,000 Barton Capital Corp.
5.270%, 11-8-96 299,693
Total Commercial Paper (cost $599,386) 599,386
SHORT-TERM SECURITIES (0.6%)
161,712 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $161,730 on 11-1-96 (cost $161,712) 161,712
Total Investments (99.6%) (cost $22,450,799) 25,951,409
Other Assets in Excess of Liabilities (0.4%) 107,608
Net Assets (100.0%) $26,059,017
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
CAPITAL APPRECIATION PORTFOLIO
<S> <C> <C>
Shares Description Value
COMMON STOCK (96.2%)
Basic Materials (2.1%)
Mining
12,825 Minerals Technologies, Inc. $503,381
Consumer, Cyclical (37.5%)
Advertising (0.1%)
1,100 Lamar Advertising Company * 30,250
Broadcasting (0.9%)
6,075 Univision Communications, Inc. * 205,031
Entertainment (2.0%)
15,975 Family Golf Centers, Inc. 469,266
Lodging (8.2%)
250 Choice Hotel International, Inc. * 3,813
24,200 HFS, Inc. * 1,772,650
12,500 U.S. Franchise Systems, Inc. * 181,250
1,957,713
Restaurants (12.3%)
14,037 Papa John's International, Inc. * 698,341
92,829 Pizza Express PLC + 778,789
73,619 J.D. Wetherspoon PLC + 1,431,744
2,908,874
Retailers - Broadline (0.6%)
7,600 Renters Choice, Inc. * 144,400
Retailers - Specialty (13.4%)
38,700 Fastenal Company 1,789,875
1,725 MSC Industrial Direct Company * 63,825
6,250 O'Reilly Automotive, Inc. * 221,094
36,825 Petco Animal Supplies, Inc. 865,387
12,475 Staples, Inc. * 232,347
3,172,528
Consumer, Non-Cyclical (15.0%)
Consumer Services (9.8%)
5,825 Alternative Resources Co. * 117,228
39,900 Coinmach Laundry Corp. * 718,200
3,475 Concord EFS, Inc. * 100,775
29,900 CUC International, Inc. * 732,550
1,837 Grand Optical Photoservice S.A. + 266,505
17,250 Profit Recovery Group International * 263,063
4,425 Teletech Holdings, Inc. * 141,600
2,339,921
Food-Other (1.2%)
4,775 JP Foodservice, Inc. * 106,244
36,525 Petfood Warehouse, Inc. * 171,211
277,455
Healthcare (2.3%)
15,900 Alternative Living Services, Inc. * 228,562
1,650 ARV Assisted Living, Inc. * 20,213
18,300 Karrington Health, Inc. * 288,225
537,000
Medical Supplies (1.2%)
9,875 Fresenius Medical Care # * $293,781
Pharmaceuticals (0.5%)
3,975 Omnicare, Inc. 108,319
Financial (5.9%)
Diversified (1.0%)
2,500 Associates First Capital Corp. 110,606
11,900 First USA Paymentech, Inc. * 114,700
225,306
Insurance (0.8%)
5,725 Protective Life Corp. 197,513
Real Estate (3.6%)
39,950 Insignia Financial Group, Inc. * 863,919
Securities Brokers (0.5%)
4,825 Charles Schwab Corp. 120,625
Industrial (11.7%)
Building Materials (0.4%)
4,325 Barnett, Inc. * 102,178
Containers & Packaging (1.3%)
8,125 Sealed Air Corp. * 315,859
Electronic Components & Equipment (0.7%)
3,900 Littelfuse, Inc. 160,875
Pollution Control (5.7%)
5,200 Culligan Water Technologies, Inc. * 195,000
171,136 Rentokil Initial PLC + 1,148,876
1,343,876
Railroads (3.6%)
23,400 Wisconsin Central Transportation Corp. * 842,400
Technology (22.5%)
Communications (13.5%)
12,425 CommNet Cellular, Inc. * 344,793
10,025 Millicom International Cellular S.A. # * 398,493
21,250 Omnipoint Corp. * 579,063
82,125 Paging Network, Inc. * 1,406,391
2,875 Premiere Technologies, Inc. * 46,719
29,385 PriCellular Corp. * 337,928
4,875 Telespectrum Worldwide, Inc. * 83,484
3,196,871
Computers (0.3%)
2,175 Technology Solutions Company * 84,553
Diversified (0.4%)
5,925 DepoTech, Inc. * 92,578
Office Equipment (7.3%)
23,750 Global Directmail Corp. * 1,169,688
19,650 Viking Office Products, Inc. * 572,306
1,741,994
Software (1.0%)
5,050 Keane, Inc. $234,193
Utilities (1.5%)
Other Industrial Services
15,825 Trigen Energy Corp. 350,128
Total Common Stock (cost $19,827,687) 22,820,787
WARRANTS (0.2%)
Industrial
Electronic Components & Equipment
1,700 Littelfuse, Inc. (cost $35,782 ) 56,100
<CAPTION>
Principal Description Value
<S> <C> <C>
COMMERCIAL PAPER (1.7%)
$400,000 Prudential Funding Corp.
5.500% 11-1-96 (cost $400,000) 400,000
SHORT-TERM SECURITIES (0.2%)
54,250 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $54,255 on 11-1-96 (cost $54,250) 54,250
Total Investments (98.3%) (cost $20,317,719) 23,331,137
<CAPTION>
Notional
Amount Description Value
UNREALIZED LOSS ON FORWARD
FOREIGN CURRENCY CONTRACTS (-0.2%) @
<S><C> <C> <C> <C>
B 150,000 British Pound 11-25-96 Sell $(17,535)
B 2,000 British Pound 12-4-96 Sell (169)
B 152,000 British Pound 12-11-96 Sell (11,129)
B 75,000 British Pound 1-16-97 Sell (4,811)
B 290,000 British Pound 1-24-97 Sell (21,344)
Total Unrealized Loss on Forward Foreign
Currency Contracts (54,988)
Other Assets in Excess of Liabilities (1.9%) 448,704
Net Assets (100.0%) $23,724,853
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
GLOBAL PORTFOLIO f
<TABLE>
<CAPTION>
Shares Description Value
<S> <C> <C>
COMMON STOCK (82.6%)
Basic Materials (1.8.%)
Chemicals (1.1%)
5,175 Cytec Industries, Inc. * $185,006
38,552 Hoechst AG + 1,448,320
1,633,326
Mining - Diversified (0.6%)
8,567 De Beers Centenary AG + 252,641
8,714 Potash Corp. of Saskatchewan, Inc. # 617,605
870,246
Steel (0.1%)
55,000 NKK Corp. + * 138,043
164 Ssab AB + 2,392
140,435
Consumer Cyclical (14.1%)
Airlines (0.6%)
1,141 Swissair AG + * 886,345
Auto Manufacturers (1.6%)
34,000 Honda Motor Company, Ltd. + 811,584
98,000 Isuzu Motors, Ltd. + 484,195
10,765 Mahindra & Mahindra, Ltd. # 104,959
86,814 Tata Engineering & Locomotive, Ltd. 144A # 1,045,189
2,445,927
Auto Parts & Equipment (0.5%)
12,680 Bajaj Auto, Ltd. # 399,420
85,000 LucasVarity Plc + * 343,758
743,178
Broadcasting (1.8%)
33,975 CanWest Global Communications Corp. 360,984
30,951 Central European Media Enterprises, Ltd.
Class A # * 866,628
38,975 Grupo Televisa S.A. # * 1,023,094
8,750 Heritage Media Corp. Class A * 133,437
25,120 Pearson PLC + 310,700
2,694,843
Clothing/Fabric (2.0%)
535 Fila Holding SpA # 38,520
24,300 Gucci Group N.V. # * 1,676,700
9,488 Wolford AG + 1,248,830
2,964,050
Consumer Electronics (0.5%)
2,075 Sony Corp. # 125,278
9,400 Sony Corp. + 563,423
688,701
Entertainment (1.0%)
431,426 Aristocrat Leisure, Ltd. + 1,280,769
3,212 London Clubs International PLC + 16,492
18,341 Tabcorp Holdings, Ltd. + 86,392
16,000 Yamaha Motor Company, Ltd. + 143,221
1,526,874
Footwear (1.6%)
28,761 Adidas AG + * 2,416,891
Home Furnishings - Other (0.2%)
7,325 Industrie Natuzzi SpA # 332,372
Lodging (0.2%)
9,400 East India Hotels, Ltd. # 164,500
6,119 Indian Hotels Company, Ltd. # * 142,267
306,767
Publishing (2.0%)
15,873 Emap PLC + $184,832
21,551 Wolters Kluwer N.V. + 2,764,948
2,949,780
Recreation Products - Other (0.3%)
18,140 Amer Group, Ltd. + 413,207
Retailers - Broadline (0.6%)
16,000 Daimaru, Inc. + 96,323
23,000 Hankyu Department Stores + 274,506
11,000 Ito-Yokado Company, Ltd + 548,311
919,140
Toys (1.2%)
38,982 Mattel, Inc. 1,125,605
114,051 Thorn EMI PLC + 643,147
1,768,752
Consumer Non-Cyclical (16.1%)
Beverages (1.1%)
770,000 Companhia Cervejaria Brahma + 476,706
32,850 PepsiCo, Inc. 973,181
25,000 Quilmes Industrial S.A. # * 262,500
1,712,387
Consumer Services (0.5%)
19,800 Amway Japan, Ltd. + 788,872
Cosmetics (0.4%)
34,350 Grupo Casa Autrey S.A. # 648,356
Food Retailers (1.3%)
72,500 Blue Square Israel, Ltd. # * 1,141,875
15,325 Disco S.A. # * 344,812
14,500 Santa Isabel S.A. # 407,812
1,894,499
Food-Other (3.4%)
19,163 Nutricia N.V. + 2,682,899
1,215,609 Parmalat Finanziaria SpA + 1,742,100
10,408 Raision Tehtaat OY + 620,765
5,045,764
Health Care (0.3%)
181,154 London International Group PLC + 464,340
Medical Supplies (0.6%)
49,882 Nobel Biocare AB + 841,340
Pharmaceuticals (7.7%)
1,835 Ciba-Geigy AG + 2,253,229
81,350 Eisai Company, Ltd. + 1,456,376
18,834 Gehe AG + 1,288,495
51,980 Glaxo Wellcome PLC + 815,494
4,325 Pfizer, Inc. 357,894
273 Roche Holding AG + 2,058,265
2,005 Sandoz AG + 2,310,177
28,098 SmithKline Beecham + 346,848
2,225 SmithKline Beecham # 139,340
36,000 Takeda Chemical Industries, Ltd. + 616,060
11,642,178
Tobacco (0.8%)
128,000 PT Hanjaya Mandala Sampoerna + 1,189,714
Financial (9.6%)
Banks (6.6%)
26,500 Bangkok Bank Company, Ltd. + $282,523
85,711 Barclays PLC + 1,345,385
13,600 Citicorp 1,346,400
22,609 CS Holding AG + 2,251,093
39,710 Deutsche Bank AG + 1,841,225
19,100 HSBC Holdings PLC + 389,050
1,262 Kookmin Bank # * 26,186
96,027 Lloyds TSB Group PLC + 609,489
7,000 Mitsui Trust & Banking Company + 67,573
21,734 Nordbanken AB + 571,335
11,013 Sparbanken Sverige AB + 174,038
9,000 Sumitomo Trust & Banking
Company, Ltd. + * 99,517
3,158 Wells Fargo & Company 843,581
9,847,395
Diversified (2.2%)
65,500 Credit Saison Company, Ltd. + 1,511,760
1,000 First Data Corp. 79,750
11,000 First Pacific Company, Ltd. + 15,151
388,230 Grupo Financiero Inbursa S.A. Class B + * 1,266,497
43,161 Investment Bure AB + 462,366
3,335,524
Insurance (0.3%)
455 Schweizeriche Rueckversicherungs
Gesellschaft + 486,577
Real Estate (0.5%)
40,000 Mitsubishi Estate Company, Ltd. + 498,464
23,000 Mitsui Fudosan Company, Ltd. + 284,599
783,063
Independent (2.7%)
Conglomerates
9,670 Barco N.V. + 1,587,300
68,917 Groupo Carso, S.A. de C.V. + 315,617
77,981 Kinnevik Investments AB B-Free + 2,115,105
4,018,022
Industrial (16.6%)
Building Materials (0.7%)
155,900 Fortune Cement Corp. + * 80,098
2,629,500 Hi Cement Corp. + * 810,473
2,442 Hunter Douglas N.V. + 172,382
1,062,953
Diversified (1.0%)
121,000 Mitsubishi Heavy Industries, Ltd. + 929,136
4,079 OEMV AG + 398,557
1,812 Sophus Berendsen A/S + 223,226
1,550,919
Electronic Components & Equipment (0.5%)
20,550 UCAR International, Inc. * 804,019
Factory Equipment (1.0%)
5,234 SGL Carbon AG + 578,853
1,591 Sulzer AG + 902,152
1,481,005
Heavy Construction (0.4%)
123,000 Kawasaki Heavy Industries, Ltd. + 562,378
25,600 New World Infrastructure + * 63,733
626,111
Other Industrial Services (13.0%)
150,740 Assa Abloy AB + $2,313,421
425,462 Hays PLC + 3,555,567
4,950 John H. Harland Company 154,069
118,260 Kesko OY + 1,821,907
11,860 Prosegur CIA de Segundad S.A. + 96,551
4,594 Randstad Holdings N.V. + 370,774
1,084,477 Rentokil Group PLC + 7,280,345
153,401 Securitas AB + 3,962,615
19,555,249
Railroads (0.0%)
1,400 Tranz Rail Holdings, Ltd. # 22,925
Technology (20.5%)
Advanced Medical Devices (0.5%)
14,725 Fresenius AG # 438,069
17,231 Getinge Industrier AB Class B + 314,193
752,262
Communications (6.8%)
6,800 Airtouch Communications, Inc. * 177,650
16,700 Asia Satellite Telecom SpA # * 446,725
58,889 Korea Mobile Telecom Corp. # 736,112
92,077 Lagardere Groupe S.A. + 2,903,560
26,750 MFS Communications
Company, Inc. * 1,340,844
60,550 Millicom International Cellular S.A. # * 2,406,862
625 Paging Network, Inc. * 10,703
19,300 Portugal Telecom S.A. # 502,149
450 Telecom Argentina France S.A. # 16,987
5,174 Telecomunicacoes Brasileiras S.A. + 383
16,900 Telecomunicacoes Braseleiras # 1,250,159
20,325 Telefonica de Argentina S.A. # 472,556
10,264,690
Computers (3.5%)
11,025 Cisco Systems, Inc. * 682,172
7,875 Dassault Systems S.A. # 341,578
25,656 Enator AB + * 569,176
35,197 Frontec AB Class B + * 502,733
122,039 Misys PLC + 1,802,407
19,804 WM Data AB Class B + 1,414,346
5,312,412
Consumer Services (0.5%)
3,120 Grand Optical Photoservice S.A. + 452,637
22,176 Merkantildata A/S + 339,889
792,526
Diversified (0.8%)
16,578 Philips Electronics N.V. + 583,173
19,425 Philips Electronics N.V. # 684,731
1,267,904
Industrial (0.0%)
3,400 Pfeiffer Vacuum Technology SpA # * 54,400
Office Equipment (3.3%)
39,475 Alco Standard Corp. 1,830,653
51,150 Danka Business Systems PLC # 2,026,818
10,015 Oce-van der Grinten N.V. + 1,066,334
4,923,805
Software (5.1%)
5,725 Electronic Data Systems Corp. $257,625
108,674 Getronics N.V. + 2,665,788
14,851 Group Axime + * 1,539,775
81,374 JBA Holdings PLC + 675,404
710 NTT Data Communications Systems
Corp. + 2,099,781
5,275 Parametric Technology Corp. * 257,815
2,875 SunGard Data Systems, Inc. * 122,906
7,619,094
Utilities (1.2%)
Gas (0.2%)
20,000 Gazprom # * 370,000
Telephone (1.0%)
49,675 Telefonica del Peru S.A. + 1,024,546
103,069 Telecom Italia Mobile SpA + 212,905
83,867 Telecom Italia SpA + 186,779
1,424,230
Total Common Stock (cost $103,307,767) 124,283,369
CONVERTIBLE PREFERRED STOCK (0.3%)
Diversified
6,675 Nokia Corp # 309,553
2,250 Nokia Corp + 103,693
413,246
NON-CONVERTIBLE PREFERRED STOCK (2.1%)
Consumer, Cyclical (0.1%)
Clothing/Fabric (0.1%)
704 Escada AG + 112,288
Publishing (0.0%)
16,324 News Corp., Ltd + 71,736
Consumer, Non-Cyclical (0.2%)
Cosmetics
561 Wella AG + 318,354
Technology (1.6%)
Advanced Medical Devices (1.0%)
7,279 Fresenius AG + 1,551,991
Software (0.6%)
6,296 SAP AG Vorzug + 845,691
Utilities (0.2%)
Electric
10,803,000 Companhia Energetica
de Minas Gerais S.A. + 342,714
Total Preferred Stock (cost $2,375,072) 3,656,020
<CAPTION>
Principal Description Value
<S> <C> <C>
SHORT-TERM U.S. GOVERNMENT AGENCIES (4.0%)
$3,000,000 Federal Home Loan Mortgage Acceptance
Corp. 5.170% 11-26-96 $2,989,229
3,000,000 Federal National Mortgage Association Corp.
5.190% 12-31-96 2,974,050
Total Short-Term U.S. Government Agencies
(cost $5,963,279) 5,963,279
COMMERCIAL PAPER (9.1%)
7,000,000 Household Finance Company
5.250% 11-6-96 6,994,896
6,700,000 Prudential Funding Corp.
5.500% 11-1-96 6,700,000
Total Commercial Paper (cost $13,694,896) 13,694,896
SHORT-TERM SECURITIES (0.0%)
52,473 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $52,539 on 11-1-96 (cost $52,473) 52,473
Total Investments (98.2%) (cost $125,393,487) 147,650,037
<CAPTION>
Notional
Amount Description Value
UNREALIZED GAIN (LOSS) ON FORWARD
FOREIGN CURRENCY CONTRACTS (0.2%)@
<S> <C> <C> <C>
B 2,100,000 British Pound 11-19-96 Sell (249,896)
B 175,000 British Pound 1-16-97 Sell (11,225)
D 17,713 German Deutschemark 11-1-96 Sell 53
D 250,000 German Deutschemark 12-11-96 Sell 37
D 4,000,000 German Deutschemark 1-17-97 Sell 21,303
D 5,287,000 German Deutschemark 1-24-97 Sell 106,856
F 2,300,000 French Franc 12-12-96 Sell (1,351)
G 68,660 Dutch Guilder 11-4-96 Sell 125
H 654,237 Philippines Peso 11-4-96 Sell (61)
H 209,879 Philippines Peso 11-5-96 Sell (20)
H 885,614 Philippines Peso 11-6-96 Sell (77)
J 50,000,000 Japanese Yen 12-11-96 Sell 26,793
J 285,000,000 Japanese Yen 12-12-96 Sell 112,497
J 210,000,000 Japanese Yen 12-17-96 Sell 70,824
J 110,000,000 Japanese Yen 1-16-97 Sell 33,450
J 161,000,000 Japanese Yen 1-17-97 Sell 87,791
K 69,508 Swedish Krona 11-1-96 Buy (54)
K 150,365 Swedish Krona 11-4-96 Sell 103
K 37,900,000 Swedish Krona 1-27-97 Sell 8,086
I 40,679,954 Italian Lira 11-6-96 Sell 41
M 334,120 Finnish Markka 11-1-96 Buy (275)
M 1,903,000 Finnish Markka 11-12-96 Sell (19,327)
M 1,050,000 Finnish Markka 11-12-96 Buy 6,960
R 587,000 South African Rand 11-3-97 Sell (400)
S 67,871 Swiss Franc 11-1-96 Sell 534
S 47,805 Swiss Franc 11-4-96 Sell 439
S 2,018,000 Swiss Franc 11-12-96 Sell 62,163
S 2,500,000 Swiss Franc 1-16-97 Sell 32,111
T 100,406 Australian Dollar 11-4-96 Sell (86)
T 331,642 Australian Dollar 11-6-96 Sell (272)
T 105,587 Australian Dollar 11-7-96 Sell (43)
Total Unrealized Gain on Forward Foreign
Currency Contracts 287,079
Other Assets in Excess of Liabilities (1.6%) 2,490,060
Net Assets (100.0%) $150,427,176
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (81.8%)
Consumer, Cyclical (9.1%)
Casinos (0.0%)
7,100 Sodak Gaming, Inc. * $128,687
Clothing/Fabric (3.3%)
95,000 Fila Holding SpA # 6,840,000
453,100 Gucci Group N.V. # 31,263,900
38,103,900
Entertainment (0.8%)
133,375 Walt Disney Company 8,786,078
Footwear (3.4%)
676,150 Nike, Inc. Class B 39,808,331
Lodging (1.6%)
248,875 HFS, Inc. * 18,230,094
Consumer, Non-Cyclical (17.5%)
Beverages (4.8%)
744,750 Coca-Cola Company 37,609,875
585,050 Pepsico, Inc. 17,332,106
54,941,981
Consumer Services (0.0%)
2,500 Sabre Group Holings, Inc. * 76,250
Food - Retailers (0.5%)
192,300 Starbucks Corp. * 6,249,750
Health Care (3.6%)
568,600 Oxford Health Plans, Inc. * 25,871,300
213,125 Pacificare Health Systems, Inc. Class B * 14,972,032
40,843,332
Pharmaceuticals (8.6%)
203,416 Astra AB A-Free + 9,334,625
212,400 Eli Lilly and Company 14,974,200
309,575 Johnson & Johnson 15,246,569
456,950 Pfizer, Inc. 37,812,612
348,250 SmithKline Beecham PLC # 21,809,156
43,631 SmithKline Beecham PLC Class A + 538,590
99,715,752
Financial (16.8%)
Banks (7.7%)
284,975 Chase Manhattan Corp. 24,436,606
322,045 Citicorp 31,882,455
121,683 Wells Fargo & Company 32,504,571
88,823,632
Diversified (4.6%)
638,700 First Data Corp. 50,936,325
619,875 Grupo Financiero Inbursa S.A. Class B + * 2,022,177
52,958,502
Securities Brokers (2.3%)
372,800 Merrill Lynch & Company, Inc. 26,189,200
U.S. Government Agency (2.2%)
105,875 Federal Home Loan Mortgage Corp. 10,693,375
380,180 Federal National Mortgage Association 14,874,542
25,567,917
Independent (1.7%)
Conglomerates
199,000 General Electric Company 19,253,250
Shares Description Value
Technology (36.5%)
Advanced Medical Devices (1.0%)
186,050 Medtronic, Inc. $11,976,969
Aerospace/Defense (1.2%)
143,350 The Boeing Company 13,672,006
Biotechnology (2.2%)
152,175 Amgen, Inc. * 9,330,230
43,625 Biogen, Inc. * 3,250,063
550,600 Chiron Corp. * 12,594,975
1,593 U.S. Bioscience, Inc. * 18,320
25,193,588
Communications (9.7%)
1,300 America Online Inc. * 35,263
510,250 Ascend Communications, Inc. * 33,357,594
1,300 Cabletron Systems, Inc. * 81,087
133,400 Cascade Communications Corp. * 9,688,175
277,135 Glenayre Technologies, Inc. * 7,136,226
333,575 MFS Communications Company, Inc. * 16,720,447
2,175 Omnipoint Corp. * 59,269
303,325 PictureTel Corp. * 8,189,775
262,525 Premisys Communications Inc. * 13,126,250
45,350 QUALCOMM, Inc. 1,802,662
348,500 US Robotics Corp. 21,911,938
112,108,686
Computers (10.0%)
3,925 Cadence Design Systems, Inc. * 143,262
1,127,150 Cisco Systems, Inc. * 69,742,406
2,625 Computer Associates International, Inc. 155,203
154,700 International Business Machines Corp. 19,956,300
130,550 Shiva Corp. * 5,352,550
324,600 Sun Microsystems, Inc. * 19,800,600
8,000 Trusted Informations Systems, Inc. * 108,000
925 VeriFone, Inc. * 31,103
115,289,424
Diversified (0.2%)
1,975 Gemstar International Group, Ltd. * 43,697
2,625 Harmonic Lightwaves, Inc. * 44,297
196,000 Voxware, Inc. * 1,617,000
875 Whittman-Hart, Inc. * 41,563
5,625 Xlconnect Solutions, Inc. * 164,531
1,911,088
Semiconductors (0.0%)
6,975 Analog Devices, Inc. * 181,350
3,475 LSI Logic Corp. * 92,088
273,438
Software (12.2%)
8,700 Applix, Inc. * 210,975
1,100 Aurum Software, Inc. * 34,925
1,750 Check Point Software Technologies, Ltd. * 47,250
4,375 Cybermedia, Inc. * 97,344
3,500 Edify, Corp. 48,781
642,400 HBO & Company 38,624,300
73,100 HNC Software, Inc. * 2,302,650
9,625 IKOS Systems, Inc. * 172,047
403,950 Informix Corp. * 8,962,640
21,550 Ingram Micro, Inc. Class A + * 387,900
5,500 International Network Services, Inc. * 196,625
275,950 Intuit, Inc. * 7,450,650
2,186 JBA Holdings PLC + 18,144
1,750 Manugistics Group, Inc. * 75,250
275,275 Microsoft Corp. * $37,781,494
237,925 Netscape Communications Corp. * 10,528,181
5,200 Oracle Systems Corp. * 220,024
4,350 Parametric Technology, Inc. * 212,606
292,000 PeopleSoft, Inc. * 26,207,000
2,600 Sapient Corp. * 120,250
1,050 Veritas Software Corp. * 53,025
1,100 Visio Corp. * 50,738
192,925 Xylan Corp. * 7,717,000
141,519,799
Utilities (0.2%)
Telephone
132,875 Telefonica del Peru S.A. + 2,740,547
Total Common Stock (cost $621,472,942) 944,362,201
NON-CONVERTIBLE PREFERRED STOCK (0.5%)
Technology
Software
47,739 SAP AG Vorzug + (cost $2,882,414) 6,412,402
<CAPTION>
Principal Description Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (1.0%)
Financial
Diversified
$12,000,000 Trump Atlantic City Associates
Funding, Inc.
11.250% 5-1-06 (cost $12,000,000) 11,370,000
LONG-TERM U.S. GOVERNMENT SECURITIES (1.5%)
17,000,000 Treasury Notes
5.500% 9-30-97 (cost $17,053,821) 17,003,400
SHORT-TERM U.S. GOVERNMENT AGENCIES (6.5%)
20,000,000 Federal Home Loan Mortgage Acceptance
Corp, 5.170% 11-26-96 19,928,194
Federal National Mortgage Association Corp.
25,000,000 5.200% 11-20-96 24,931,389
30,000,000 5.380% 12-6-96 29,843,084
Total Short-Term U.S. Government Agencies
(cost $74,702,667) 74,702,667
COMMERCIAL PAPER (8.7%)
$30,000,000 General Electric Capital Corp.
5.350% 11-6-96 $29,977,708
30,000,000 Household Finance Corp.
5.250% 11-6-96 29,978,125
40,800,000 Prudential Funding Corp.
5.500% 11-1-96 40,800,000
Total Commercial Paper (cost $100,755,833) 100,755,833
SHORT-TERM SECURITIES (0.0%)
107,008 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $107,020 on 11-1-96 (cost $107,008) 107,008
Total Investments (100.0%) (cost $828,974,685) 1,154,713,511
<CAPTION>
Notional
Amount Description Value
UNREALIZED GAIN (LOSS) ON FORWARD FOREIGN
CURRENCY CONTRACTS (0.0%) @
<S><C> <C> <C> <C>
B 11,227 British Pound 11-5-96 Buy (66)
D 781,314 German Deutschemark 11-1-96 Sell 2,329
D 64,694 German Deutschemark 11-1-96 Buy (193)
D 20,000,000 German Deutschemark 12-11-96 Sell 11,731
D 5,000,000 German Deutschemark 12-11-96 Buy 6,675
D 3,000,000 German Deutschemark 12-11-96 Buy (1,104)
D 5,000,000 German Deutschemark 12-11-96 Buy (1,622)
D 21,646,000 German Deutschemark 1-17-97 Sell 336,535
D 21,646,000 German Deutschemark 1-17-97 Buy 28,864
D 2,000,000 German Deutschemark 1-27-97 Sell 34,120
Total Unrealized Gain on Forward Foreign
Currency Contracts 417,269
Other Assets in Excess of Liabilities (0.0%) 42,945
Net Assets (100.0%) $1,155,173,725
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
C.A.S.E. PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (75.5%)
Basic Materials (5.0%)
Building Materials (1.6%)
1,000 Carlisle Companies, Inc. $56,875
Steel (3.4%)
4,000 Oregon Steel Mills, Inc. 63,500
4,300 Steel Technologies, Inc. 55,900
119,400
Consumer, Cyclical (9.2%)
Footwear (1.5%)
2,600 Brown Group, Inc. 53,625
Retailers - Apparel (2.2%)
2,500 Gymboree Corp. * 78,125
Retailers - Broadline (2.2%)
3,900 Price / Costco, Inc. * 77,512
Retailers - Specialty (3.3%)
1,500 Deere and Company 62,625
2,100 The Sports Authority, Inc. * 50,925
113,550
Consumer, Non-Cyclical (19.6%)
Beverages (3.2%)
1,400 Anheuser-Busch Companies, Inc. 53,900
1,400 Coca-Cola Enterprises, Inc. 59,675
113,575
Food - Other (6.6%)
4,400 Chiquita Brands International, Inc. 55,000
1,400 Dole Food Company 54,600
1,500 Interstate Bakeries Corp. 63,563
1,700 Sara Lee Corp. 60,350
233,513
Healthcare (3.0%)
6,400 NovaCare, Inc. * 52,800
2,500 Tenet Healthcare Corp. * 52,187
104,987
Household Products (3.7%)
3,000 Maytag Corp. 59,625
700 Procter & Gamble, Inc. 69,300
128,925
Pharmaceuticals (3.1%)
1,000 Johnson & Johnson 49,250
800 Merck And Company, Inc. 59,300
108,550
Energy (1.7%)
Oil Companies - Secondary
3,500 Quaker State Corp. 58,625
Financial (12.5%)
Banks (3.3%)
3,100 City National Corp. 54,250
1,700 MBNA Corp. 64,175
118,425
Diversified (3.8%)
1,800 PNC Bank Corp. $65,250
1,800 SunAmerica, Inc. 67,500
132,750
Insurance (3.8%)
1,000 MGIC Investment Corp. 68,625
1,200 Travelers Group, Inc. 65,100
133,725
Securities Brokers (1.6%)
800 Merrill Lynch & Company, Inc. 56,200
Independent (1.5%)
Conglomerates
2,000 U.S. Industries, Inc. * 54,000
Industrial (6.7%)
Electric Components & Equipment (1.7%)
3,500 Westinghouse Electric, Inc. 59,938
Other Industrial Services (3.5%)
1,800 CalEnergy Company, Inc. * 52,200
2,000 U.S. Filter Corp. * 69,000
121,200
Paper Products (1.5%)
1,900 Mosinee Paper Corp. 54,150
Technology (10.6%)
Aerospace/Defense (3.7%)
2,600 AAR Corp. 74,100
700 Northrop Grumman Corp. 56,525
130,625
Computers (3.3%)
900 Computer Associates International, Inc. 53,213
2,700 Control Data Systems, Inc. 63,450
116,663
Industrial Technology (1.8%)
3,300 Global Industrial Technology, Inc. * 61,462
Software (1.8%)
1,500 Oracle Systems Corp. * 63,469
Utilities (8.7%)
Electric (1.7%)
2,300 TNP Enterprises, Inc. 59,512
Gas (1.5%)
3,600 Southwestern Energy Company 53,550
Telephone (3.8%)
1,400 Ameritech Corp. 76,650
2,400 WorldCom Inc. * 58,500
135,150
Water (1.7%)
1,500 Eastern Enterprises, Inc. 57,750
Total Common Stock (cost $2,532,430) 2,655,831
<CAPTION>
Principal Description Value
<S> <C> <C>
SHORT-TERM SECURITIES (27.5%)
$129,614 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $129,628 on 11-1-96 $129,614
840,000 State Street Bank & Trust
Euro Time Deposit
4.500%, 11-4-96 840,000
Total Short-term Securities (cost $969,614) 969,614
Total Investments (103.0%) (cost $3,502,044) 3,625,445
Liabilities in Excess of Other Assets (-3.0%) (104,391)
Net Assets (100.0%) $3,521,054
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (54.6%)
Basic Materials (9.4%)
Aluminum(2.5%)
8,000 Alumax, Inc. * $257,000
3,500 Aluminum Company of America 205,187
462,187
Chemicals (3.5%)
4,000 Dow Chemical Company 311,000
9,000 Georgia Gulf Corp. 243,000
5,000 Wellman, Inc. 88,750
642,750
Mining (1.6%)
4,000 Potash Corp. of Saskatchewan, Inc. 283,500
Paper Products (1.0%)
4,000 International Paper Company 171,000
Steel (0.8%)
9,000 Birmingham Steel Corp. 144,000
Consumer, Cyclical (13.9%)
Apparel (1.3%)
8,000 Russell Corp. 227,000
Auto Manufacturers (3.8%)
15,000 Chrysler Corp. 504,375
6,000 Ford Motor Company 187,500
691,875
Footwear (1.0%)
5,320 Payless ShoeSource, Inc. * 180,215
Home Construction (1.4%)
15,000 Clayton Homes, Inc. 253,125
Restaurants (1.3%)
12,000 Cracker Barrel Old Country Store, Inc. * 244,500
Retailers - Broadline (1.3%)
5,000 May Department Stores Company 236,875
Retailers - Specialty (3.8%)
12,000 Fingerhut Companies, Inc. 178,500
15,000 Toys R Us, Inc. * 508,125
686,625
Consumer, Non-Cyclical (3.1%)
Pharmaceuticals (1.8%)
3,000 McKesson Corp. 149,250
4,000 R.P. Scherer Corp. * 185,500
334,750
Tobacco (1.3%)
8,000 UST, Inc. 231,000
Energy (2.0%)
Oil Companies - Major (0.8%)
3,000 Burlington Resources, Inc. 151,125
Oil Companies - Secondary (1.2%)
9,000 Valero Energy Corp. 213,750
Financial (12.3%)
Diversified (2.4%)
2,000 Associates First Capital Corp. $86,750
12,000 Countrywide Credit Industries, Inc. 342,000
428,750
Insurance (5.9%)
7,000 AFLAC, Inc. 280,875
4,000 AMBAC, Inc. 250,000
2,000 Frontier Insurance Group, Inc. 79,500
3,000 MGIC Investment Corp. 205,875
4,500 PMI Group, Inc. 257,063
1,073,313
Securities Brokers (1.2%)
9,000 Lehman Brothers Holding, Inc. 226,125
U.S. Government Agency (2.8%)
2,000 Federal Home Loan Mortgage Corp. 202,000
8,000 Federal National Mortgage Association 313,000
515,000
Independent (1.5%)
Conglomerates
3,000 Philip Morris Companies, Inc. 277,875
Industrial (4.2%)
Diversified (2.4%)
25,000 Horsham Corp. 431,250
Electronic Components And Equipment (1.8%)
7,000 Arrow Electronics, Inc. 333,375
Technology (8.2%)
Communication (2.9%)
4,500 Seagate Technology * 300,375
6,000 Sprint Corp. 235,500
535,875
Diversified (1.8%)
9,000 Philips Electronics N.V. # * 317,250
Semiconductors (2.5%)
10,000 Applied Materials, Inc. * 264,375
10,000 MEMC Electric Material, Inc. * 193,750
458,125
Software (1.0%)
19,000 Novell, Inc. * 175,750
Total Common Stock (cost $9,202,714) 9,926,965
CONVERTIBLE PREFERRED STOCK (1.2%)
Industrial
Diversified
4,500 Kmart Financing, Inc.
(cost $225,000) 213,750
<CAPTION>
Principal Description Value
NON-CONVERTIBLE CORPORATE BONDS (5.5%)
<S> <C> <C>
Financial
Diversified
$1,000,000 Ford Motor Credit
6.170% 11-9-98 (cost $1,002,392) 1,001,230
LONG-TERM U.S. GOVERNMENT AGENCIES (1.7%)
Federal Home Loan Bank
$100,000 6.080% 9-8-98 $100,266
100,000 8.600% 8-25-99 106,472
100,000 7.880% 2-9-00 105,103
Total Long-Term U.S. Government Agencies (cost $316,139) 311,841
LONG-TERM U.S. GOVERNMENT SECURITIES (17.1%)
Treasury Notes
100,000 6.125% 12-31-96 100,171
500,000 5.500% 7-31-97 500,275
500,000 5.250% 7-31-98 496,255
500,000 7.125% 10-15-98 512,705
500,000 5.875% 3-31-99 500,580
500,000 6.000% 10-15-99 501,715
500,000 5.500% 4-15-00 492,735
Total Long-Term U.S. Government Securities (cost $3,107,048) 3,104,436
COMMERCIAL PAPER (19.9%)
$900,000 Anchor Funding Corp.
5.320% 11-4-96 $899,601
425,000 ASI Funding Corp.
5.330% 11-13-96 424,245
550,000 Barton Capital Corp.
5.270% 11-8-96 549,436
187,000 Bay State Gas, Inc.
5.270% 11-5-96 186,891
100,000 Industrial Funding Corp.
5.300% 11-4-96 99,956
350,000 Omnibus Funding Corp.
5.450% 11-7-96 349,682
Reliastar Mortgage Corp.
150,000 5.280% 11-7-96 149,868
150,000 5.280% 11-7-96 149,868
700,000 5.270% 11-12-96 698,873
100,000 South Carolina E & G Corp.
5.280% 11-4-96 99,956
Total Commercial Paper (cost $3,608,376) 3,608,376
SHORT-TERM SECURITIES (0.2%)
31,344 State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $31,347 on 11-1-96 (cost $31,344) 31,344
Total Investments (100.2%) (cost $17,493,013) 18,197,942
Liabilities in Excess of Other Assets (-0.2%) (30,714)
Net Assets (100.0%) $18,167,228
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
EQUITY-INCOME PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (68.7%)
Basic Materials (6.6%)
Chemicals
1,900 E.I. Du Pont de Nemours
and Company $176,225
15,400 Lawter International, Inc. 180,950
7,250 M.A. Hanna Company 154,062
6,500 Morton International, Inc. 255,937
4,100 Nalco Chemical Company 149,137
2,000 Olin Corp. 85,000
1,001,311
Consumer Cyclical (6.0%)
Auto Parts & Equipment (0.4%)
3,000 Stewart & Stevenson Services, Inc. 63,750
Clothing/Fabric (0.6%)
5,000 Intimate Brands, Inc. Class A 90,625
Entertainment (1.7%)
2,000 Eastman Kodak Company 159,500
1,500 Walt Disney Company 98,813
258,313
Publishing (0.9%)
3,300 A.H. Belo Corp. 128,700
Retailers - Broadline (1.2%)
3,500 J.C. Penney Company, Inc. 183,750
Retailers - Specialty (1.2%)
3,400 Home Depot, Inc. 186,150
Consumer Non-Cyclical (16.8%)
Beverages (1.3%)
6,600 PepsiCo, Inc. 195,525
Consumer Services (0.7%)
3,000 Storage USA, Inc. 104,250
Cosmetics (1.1%)
3,900 Estee Lauder Companies, Inc. Class A 167,700
Food-Other (1.2%)
5,100 H.J. Heinz Company 181,050
Healthcare (1.6%)
4,500 Columbia / HCA Healthcare Corp. 160,875
5,500 Hooper Holmes, Inc. 81,813
242,688
Household Products - Non-Durable (5.3%)
2,000 Colgate-Palmolive Company 184,000
1,700 Duracell International, Inc. 113,475
2,000 Procter & Gamble Company 198,000
6,000 Tupperware Corp. 308,250
803,725
Medical Supplies (2.0%)
4,000 Baxter International, Inc. 166,500
5,000 C.R. Bard, Inc. 141,250
307,750
Pharmaceuticals (2.7%)
3,000 Johnson & Johnson $147,750
1,500 Merck and Company 111,188
2,400 Schering Plough Corp. 153,600
412,538
Tobacco (0.9%)
5,000 UST, Inc. 144,375
Energy (6.4%)
Oil Companies - Major (4.9%)
2,000 Amoco Corp. 151,500
1,200 Atlantic Richfield Company 159,000
2,000 Exxon Corp. 177,250
1,200 Mobil Corp. 140,100
4,300 Union Pacific Resources Group, Inc. 118,250
746,100
Oil Companies - Secondary (1.2%)
5,000 Baker Hughes, Inc. 178,125
Pipelines (0.3%)
1,100 PanEnergy Corp. 42,350
Financial (14.2%)
Banks (2.6%)
14,000 First Colorado Bancorp, Inc. 218,750
2,700 Mellon Bank Corp. 175,838
394,588
Diversified (1.4%)
2,000 Marsh & McLennan Companies, Inc. 208,250
Insurance (1.7%)
1,500 American International Group, Inc. 162,937
1,600 UNUM Corp. 100,600
263,537
U.S. Government Agency (1.4%)
5,300 Federal National Mortgage Association 207,362
Real Estate (7.1%)
11,200 Arden Realty, Inc. 253,400
8,000 Boykin Lodging Trust, Inc. 160,000
3,400 Crescent Real Estate Equities, Inc. 141,950
12,500 Prentiss Properties Trust 257,813
6,000 Starwood Lodging Trust 270,000
1,083,163
Independent (1.1%)
Conglomerates
1,700 General Electric Company 164,475
Industrial (10.9%)
Building Materials (2.1%)
4,500 Masco Corp. 141,187
3,600 Sherwin Williams Company 180,450
321,637
Diversified (4.7%)
5,000 Corning, Inc. 193,750
6,500 Keystone International, Inc. 117,000
4,200 Tyco International Ltd. 208,425
11,700 Westinghouse Electric Corp. 200,363
719,538
Electronic Components and Equipment (0.5%)
900 Emerson Electric Company $80,100
Other Industrial Services (2.1%)
5,500 Manpower, Inc. 156,062
4,800 National Service Industries, Inc. 165,600
321,662
Pollution Control (1.5%)
6,500 WMX Technologies, Inc. 223,437
Technology (5.6%)
Computers (1.8%)
6,200 Hewlett-Packard Company 273,575
Diversified (0.9%)
2,900 Raytheon Company 142,825
Industrial Technology (1.3%)
4,500 Fisher Scientific International, Inc. 201,937
Office Equipment (0.7%)
2,500 Danka Business Systems PLC # 99,063
Software (0.9%)
3,000 Electronic Data Systems Corp. 135,000
Utilities (1.1%)
Telephone
5,600 ALLTEL Corp. 170,800
Total Common Stock (cost $9,240,486) 10,449,724
CONVERTIBLE PREFERRED STOCK (1.1%)
Utilities
Electric
3,000 CalEnergy Company, Inc. *
(cost $150,000) 174,750
<CAPTION>
Principal Description Value
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS (3.7%)
Consumer Cyclical (0.7%)
Retailers - Specialty
$100,000 Home Depot, Inc.
3.250% 10-1-01 100,500
Consumer Non-Cyclical (0.6%)
Healthcare
100,000 Quantum Health Resources, Inc.
4.750% 10-1-00 92,875
Energy (1.5%)
Oil Drilling
200,000 Nabors Industries, Inc.
5.000% 5-15-06 227,500
Utilities (0.9%)
Electric
150,000 Potomac Electric Power Company
5.000% 9-1-02 136,688
Total Convertible Corporate Bonds (cost $529,568) 557,563
NON-CONVERTIBLE CORPORATE BONDS (18.4%)
Consumer Cyclical (1.4%)
Entertainment (0.7%)
$100,000 Walt Disney Company 7.750% (until 1997,
increasing thereafter), 10-05-09 $101,440
Retailers - Broadline (0.7%)
100,000 May Department Stores Company
9.125% 12-01-16 105,000
Consumer Non-Cyclical (1.7%)
Food - Other
250,000 Nabisco Brands, Inc.
8.300% 4-15-99 260,937
Energy (0.7%)
Pipelines
100,000 Transcontinental Gas Pipeline Corp.
9.125% 2-1-17 104,875
Financial (3.7%)
Banks (1.4%)
200,000 J. P. Morgan & Company, Inc.
7.625% 9-15-04 210,750
Diversified (1.3%)
200,000 Norwest Financial, Inc.
7.000% 1-15-03 204,500
Insurance (1.0%)
150,000 Torchmark Corp.
8.625% 3-1-17 153,701
Industrial (4.6%)
Other Industrial Services (1.6%)
250,000 Olsten Corp.
7.000% 3-15-06 249,688
Diversified (2.3%)
150,000 Dexter Corp.
9.250% 12-15-16 157,502
200,000 Robbins & Myers, Inc.
6.500% 9-1-03 203,250
360,752
Railroads (0.7%)
100,000 Union Pacific Corp.
7.375% 5-15-01 103,000
Technology (2.7%)
Communications (1.7%)
250,000 Lucent Technologies, Inc.
6.900% 7-15-01 254,063
Office Equipment (1.0%)
100,000 Danka Business Systems PLC #
6.750% 4-1-02 146,500
Utilities (3.6%)
Electric (1.2%)
$175,000 Interstate Power Company
8.625% 9-15-21 $187,031
Gas (1.0%)
150,000 Southwest Gas Corp.
7.500% 8-1-06 153,375
Telephone (1.4%)
200,000 ALLTEL Corp.
7.250% 4-1-04 205,250
Total Non-Convertible Corporate Bonds (cost $2,749,029) 2,800,862
LONG-TERM U.S. GOVERNMENT SECURITIES (4.6%)
Treasury Notes
$100,000 6.000% 11-30-97 $100,427
200,000 6.125% 5-15-98 201,346
200,000 5.875% 8-15-98 200,464
200,000 7.000% 4-15-99 205,274
Total Long-Term U.S. Government Securities (cost $703,459) 707,511
SHORT-TERM SECURITIES (3.1%)
474,026 State Street Bank & Trust***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $474,078 on 11-1-96 (cost $474,026) 474,026
Total Investments (99.6%) (cost $13,846,568) 15,164,436
Other Assets in Excess of Liabilities (0.4%) 56,064
Net Assets (100.0%) $15,220,500
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
Shares Description Value
<S> <C> <C>
COMMON STOCK (49.1%)
Basic Materials (0.3%)
Mining
700 Minerals Technologies, Inc. $27,475
Consumer, Cyclical (4.3%)
Broadcasting (1.7%)
3,300 Heritage Media Corp. * 50,325
2,900 Young Broadcasting Corp. * 82,650
2,375 US Satellite Broadcasting Company 38,297
171,272
Casinos (0.5%)
1,425 Circus Circus Enterprises, Inc. * 49,163
Entertainment (0.7%)
14,542 London Clubs International PLC + 74,667
Lodging (0.5%)
2,700 Extended Stay America, Inc. * 54,675
Publishing (0.7%)
330 Wolters Kluwer N.V. + 42,338
1,150 World Color Press, Inc. * 25,732
68,070
Retailers - Drug Based (0.2%)
325 Cardinal Health, Inc. 25,512
Consumer, Non-Cyclical (6.6%)
Apparel (0.5%)
367 Wolford AG + 48,305
Food-Other (2.1%)
1,125 Campbell Soup Company 90,000
1,300 Kellogg Company 82,550
775 Wm Wrigley Jr. Company 46,694
219,244
Household Products (1.3%)
1,000 Colgate-Palmolive Company 92,000
300 Unilever N.V. # 45,863
137,863
Medical Supplies (0.3%)
500 Luxxotica Group SpA # 31,750
Pharmaceuticals (2.4%)
3,099 Glaxo Wellcome PLC + 48,619
124 Sandoz AG + 142,874
875 Smithkline Beecham PLC # 54,797
246,290
Financial (22.2%)
Banks (8.1%)
182 Banco Popular Espanol S. A. + 34,747
2,725 Bank of New York Company, Inc. 90,266
1,000 Bank United Corp. 26,625
10,255 Barclays PLC # 160,970
1,075 Citicorp 106,425
3,400 Home Bancorp Elgin, Inc. 42,500
1,150 Sterling Bancorp 14,806
1,325 Wells Fargo & Company 353,941
830,280
Diversified (1.8%)
2,625 Associates First Capital Corp. $113,859
900 First Data Corp. 71,775
185,634
Insurance (8.3%)
1,300 AFLAC, Inc. 52,163
1,075 Allstate Corp. 60,334
375 CMAC Investment Corp. 25,922
1,530 Delphi Financial Group, Inc. Class A * 43,031
1,500 Foremost Corp. Of America 82,688
750 MGIC Investment Corp. 51,468
2,600 PennCorp Financial Group, Inc. 90,025
3,500 Protective Life Corp. 120,750
5,000 UICI * 127,500
3,200 UNUM Corp. 201,200
855,081
Real Estate (2.5%)
7,625 Innkeepers USA Trust 89,594
4,000 Insignia Financial Group, Inc. * 86,500
2,350 Redwood Trust, Inc. 77,550
253,644
Savings & Loans (1.5%)
1,825 First Savings Bank Washington Bancorp, Inc. 31,025
6,575 Klamath First Bancorp, Inc. 92,461
1,200 Ocean Financial Corp. * 29,250
152,736
Industrial (7.4%)
Containers & Packaging (0.4%)
1,025 Sealed Air Corp. * 39,847
Electronic Components And Equipment (3.0%)
7,375 Dionex Corp. * 282,094
512 Pittway Corp. Class A 23,296
305,390
Heavy Machinery (0.8%)
3,075 AGCO Corp. 78,028
Other Industrial Services (2.7%)
3,785 Hays PLC + 31,631
1,425 John H. Harland Company 44,353
4,550 Robert Half International, Inc. * 182,569
7 Societe Generale de Serveillance Holdings SA 15,844
274,397
Pollution Control (0.5%)
7,407 Rentokil Initial PLC + 49,725
Technology (6.9%)
Advanced Medical Devices (0.4%)
700 Medtronic, Inc. 45,063
Aerospace/Defense (3.2%)
750 The Boeing Company 71,531
4,125 Gulfstream Aerospace Corp. * 97,453
425 Lockheed Martin Corp. 38,091
1,750 Sunstrand Corp. 70,438
375 United Technologies Corp. 48,281
325,794
Auto Manufacturers (0.7%)
1,250 General Motors Corp. Class H $66,718
Communications (0.5%)
1,050 Lucent Technologies, Inc. 49,350
17 MFS Communications Company, Inc. * 852
50,202
Computers (0.8%)
1,100 Computer Sciences Corp. * 81,675
Industrial Technology (0.2%)
1,275 Pfeiffer Vacuum Technology SpA # * 20,400
Office Equipment (1.1%)
1,025 Alco Standard Corp. 47,534
1,575 Danka Business Systems PLC # 62,410
109,944
Utilities (1.4%)
Gas (0.9%)
3,875 Southern Union Company 96,390
Telephone (0.5%)
1,050 Cincinnati Bell, Inc. 51,843
Total Common Stock (cost $4,413,235) 5,027,077
NON-CONVERTIBLE PREFERRED STOCK (2.0%)
Financial (1.8%)
Diversified
8,000 Hartford Capital Corp. Series A 189,000
Technology (0.2%)
Software
146 SAP AG-Vorzug + 19,611
Total Non-Convertible Preferred Stock (cost $219,088) 208,611
CONVERTIBLE PREFERRED STOCK (1.3%)
Industrial (0.7%)
Diversified
800 Alco Standard Series B 69,400
Technology (0.6%)
Communications
775 MFS Communications Company, Inc. 67,231
Total Convertible Preferred Stock (cost $116,558 ) 136,631
<CAPTION>
Principal Description Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (22.5%)
Consumer, Cyclical (7.1%)
Broadcasting (1.0%)
$100,000 Heritage Media Corp.
8.750% 2-15-06 94,750
Casinos (2.2%)
240,000 Circus Circus Enterprises, Inc.
6.450% 2-1-06 227,700
Entertainment (1.2%)
120,000 Walt Disney Company
6.375% 3-30-01 119,850
Retailers - Broadline (2.7%)
$275,000 Sears Roebuck Acceptance Corp.
6.500% 6-15-00 $276,031
Financial (12.9%)
Banks (5.3%)
150,000 First Nationwide Holdings, Inc.
9.125% 1-15-03 150,000
200,000 First USA Bank of Wilmington Delaware,
Inc. 5.750% 1-15-99 197,750
200,000 Bank Of Boston Corp.
6.625% 12-1-05 194,500
542,250
Diversified (7.6%)
400,000 Associates Corp. of North America
5.600% 1-15-01 387,000
400,000 International Lease Finance Corp.
5.750% 12-15-99 393,500
780,500
Industrial (1.5%)
Diversified
145,000 Dade International Inc.
11.125% 5-1-06 154,063
Technology (1.0%)
Aerospace/Defense
100,000 Lockheed Martin Corp.
6.550% 5-15-99 100,750
Total Non-Convertible Corporate Bonds (cost $2,316,556) 2,295,894
FOREIGN GOVERNMENT BONDS (3.1%) @
C 370,000 Canadian Government
8.750% 12-1-05 (cost $297,377 ) 321,642
LONG-TERM U.S. GOVERNMENT SECURITIES (13.7%)
Treasury Notes
$300,000 5.000% 1-31-98 297,753
300,000 6.125% 5-15-98 302,019
180,000 5.500% 11-15-98 179,069
200,000 6.375% 5-15-99 202,340
225,000 5.750% 10-31-00 222,710
200,000 5.625% 2-28-01 196,738
Total Long-Term U.S. Government Securities (cost $1,393,990) 1,400,629
SHORT-TERM U.S. GOVERNMENT AGENCIES (1.9%)
200,000 Federal Home Loan Bank
5.190% 11-21-96 (cost $199,424) 199,424
COMMERCIAL PAPER (6.5%)
370,000 Prudential Funding Corp.
5.500% 11-1-96 370,000
300,000 Household Finance Company
5.250% 11-6-96 299,781
Total Commercial Paper (cost $669,781) 669,781
Total Investments ( 100.1%) (cost $9,626,009) 10,259,689
<CAPTION>
Notional Description Value
Amount
UNREALIZED GAIN(LOSS) ON FORWARD
FOREIGN CURRENCY CONTRACTS (0.0%) @
<S><C> <C> <C> <C>
A 450,732 Austrian Schilling 11-4-96 Buy $453
A 98,046 Austrian Schilling 11-4-96 Buy 71
B 68,000 British Pound 11-19-96 Sell (8,061)
B 11,000 British Pound 1-17-97 Sell (834)
D 2,376 German Deutschemark 11-1-96 Sell 7
D 80,000 German Deutschemark 1-17-97 Sell 1,218
D 13,000 German Deutschemark 1-17-97 Buy 30
D 15,000 German Deutschemark 1-17-97 Buy 19
D 6,000 German Deutschemark 1-17-97 Buy (3)
D 12,000 German Deutschemark 1-17-97 Buy (6)
G 54,000 Dutch Guilder 11-19-96 Sell (9)
S 5,718 Swiss Franc 11-1-96 Buy (45)
S 5,733 Swiss Franc 11-4-96 Buy (52)
S 95,000 Swiss Franc 1-8-97 Sell 1,081
Total Unrealized Loss on Forward Foreign Currency Contracts (6,131)
Liabilities in Excess of Other Assets (-0.1%) (6,851)
Net Assets (100.0%) $10,246,707
</TABLE>
OCTOBER 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
FLEXIBLE INCOME PORTFOLIO
Description Principal Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (75.9%)
Consumer, Cyclical (9.1%)
Broadcasting (1.7%)
Sinclair Broadcast Group, Inc.
10.000% 9-30-05 $325,000 $316,062
Entertainment (2.5%)
United Artists Theatres
9.300% 7-1-15 495,882 456,833
Home Furnishings (3.5%)
Selmer Company, Inc.
11.000% 5-15-05 600,000 639,000
Retailers - Apparel (1.4%)
Loehmann's, Inc.
11.875% 5-15-03 250,000 265,625
Consumer, Non-Cyclical (4.4%)
Food-Other (2.7%)
Ralston Purina Company
7.875% 6-15-25 475,000 487,469
Healthcare (1.7%)
Tenet Healthcare Corp.
8.625% 12-1-03 300,000 317,250
Financial (45.4%)
Banks (17.3%)
Anchor Bancorp, Inc.
8.938% 7-9-03 500,000 519,375
Center Banks, Inc.
8.375% 10-1-02 500,000 532,500
First National Bank of Boston, Inc.
7.375% 9-15-06 500,000 511,250
First Nationwide Financial Corp.
10.625% 10-1-03 250,000 262,500
First Union Corp.
7.050% 8-1-05 400,000 401,500
Norwest Financial, Inc.
6.750% 6-1-05 200,000 199,250
Standard Federal Bancorp, Inc.
7.750% 7-17-06 250,000 260,312
Swiss Bank Corp.
7.000% 10-15-15 500,000 486,250
3,172,937
Diversified (15.9%)
Aames Financial Corp.
9.125% 11-1-03 750,000 757,500
California Hotel Finance Corp.
11.000% 12-1-02 250,000 261,250
Ford Motor Credit Company
7.750% 3-15-05 700,000 733,250
6.750% 8-15-08 250,000 243,750
Lifestyle Furnishings, Inc.
10.875% 8-1-06 400,000 416,000
Unifrax Investment Corp.
10.500% 11-1-03 500,000 508,750
2,920,500
Insurance (10.9%)
Delphi Financial Group, Inc.
8.000% 10-1-03 $1,000,000 $993,750
Orion Capital Corp.
7.250% 7-15-05 1,000,000 1,006,250
2,000,000
Savings & Loan (1.3%)
First Merchants Acceptance Corp.
9.500% 12-15-06 250,000 250,625
Industrial (8.5%)
Diversified (5.8%)
Consolidated Cigar Acquisition Corp.
10.500% 3-1-03 390,000 406,575
USG Corp.
9.250% 9-15-01 Series B 400,000 426,500
8.500% 8-1-05 225,000 232,031
1,065,106
Steel (2.7%)
Weirton Steel Corp.
11.375% 7-1-04 490,000 491,225
Technology (5.6%)
Computers (2.8%)
International Business Machines Corp.
7.500% 6-15-13 500,000 518,750
Diversified (2.8%)
Neodata Services, Inc.
12.000% 5-1-03 500,000 513,750
Utilities (2.9%)
Electric
El Paso Electric Company
9.400% 5-1-11 500,000 525,000
Total Non-Convertible Corporate Bonds
(cost $13,657,491) 13,940,132
CONVERTIBLE CORPORATE BONDS (2.0%)
Industrial
Diversified
Pegasus Media & Communications, Inc.
12.500% 7-1-05 (cost $350,000) 350,000 376,250
LONG-TERM U.S. GOVERNMENT SECURITIES (11.4%)
Treasury Notes
7.000% 7-15-06 (cost $2,031,566) 2,000,000 2,088,660
COMMERCIAL PAPER (9.8%)
Household Finance Company
5.550% 11-1-96 900,000 900,000
Prudential Funding Corp.
5.500% 11-1-96 900,000 900,000
Total Commercial Paper (cost $1,800,000) 1,800,000
SHORT-TERM SECURITIES (0.5%)
State Street Bank & Trust ***
4.000% Repurhase Agreement
dated 10-31-96 to be repurchased
at $88,344 on 11-1-96 (cost $88,334) 88,334 88,334
Total Investments (99.6%) (cost $17,927,391) 18,293,376
Other Assets in Excess of Liabilities (0.4%) 75,415
Net Assets (100.0%) $18,368,791
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
INCOME PLUS PORTFOLIO
Description Principal Value
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS (85.7%)
Basic Materials (3.9%)
Precious Metals
Inco, Ltd.
9.600% 6-15-22 $2,500,000 $2,733,375
Consumer Cyclical (25.1%)
Airlines (2.0%)
Piedmont Aviation, Inc.
10.100% 5-13-07 1,048,000 989,050
USAir, Inc.
10.800% 1-1-05 400,000 395,500
1,384,550
Auto Parts & Equipment (3.5%)
Mark IV Industries, Inc.
8.750% 4-1-03 2,430,000 2,472,525
Casinos (2.9%)
Circus Circus Enterprises, Inc.
6.450% 2-1-06 1,000,000 955,700
Majestic Star LLC
12.750% 5-15-03 1,000,000 1,080,000
2,035,700
Conglomerates (2.8%)
ITT Corp.
6.750% 11-15-05 2,000,000 1,933,220
Home Furnishings (3.0%)
Black & Decker Corp.
7.500% 4-1-03 2,000,000 2,068,760
Publishing (5.2%)
Golden Books Publishing, Inc.
7.650% 9-15-02 2,250,000 1,991,250
News America Holdings, Inc.
8.625% 2-1-03 1,500,000 1,627,215
3,618,465
Real Estate (1.4%)
M.D.C. Holdings, Inc.
11.125% 12-15-03 1,000,000 1,005,000
Retailers - Broadline (4.3%)
Dayton Hudson Corp.
8.500% 12-1-22 2,000,000 2,098,660
Kmart Corp.
8.125% 12-1-06 1,000,000 902,500
3,001,160
Consumer Non-Cyclical (17.3%)
Consumer Services (7.0%)
ERAC USA Finance Company
6.350% 1-15-01 2,000,000 1,976,240
Hertz Corp.
6.000% 1-15-03 2,000,000 1,927,680
Metromedia International Group, Inc.
9.875% 3-15-97 974,000 974,000
4,877,920
Food - Other (2.8%)
BFI Acquisition Corp.
12.000% 12-1-01 ## $1,000,000 $650,000
Fleming Companies, Inc.
7.875% 12-15-01 1,500,000 1,320,000
1,970,000
Food Retailers (7.5%)
American Stores Company
9.125% 4-1-02 1,000,000 1,104,910
Great Atlantic & Pacific Tea, Inc.
7.700% 1-15-04 2,000,000 2,022,440
Ralph's Grocery Company
10.450% 6-15-04 1,000,000 1,010,000
Super Rite Foods, Inc.
10.625% 4-1-02 1,000,000 1,071,250
5,208,600
Energy (11.2%)
Oil Drilling (4.2%)
Louisiana Land Exploration Company
7.625% 4-15-13 2,000,000 2,035,780
Maxus Energy Corp.
11.250% 5-1-13 905,000 929,888
2,965,668
Oilfield Equipment/Services (1.6%)
McDermott, Inc.
9.375% 3-15-02 1,000,000 1,089,670
Pipelines (5.4%)
Enron Corp.
6.750% 7-1-05 2,500,000 2,462,775
Williams Companies, Inc.
10.250% 7-15-20 1,000,000 1,281,730
3,744,505
Financial (10.7%)
Banks (1.6%)
Citicorp
9.500% 2-1-02 1,000,000 1,126,980
Diversified (6.0%)
BAT Capital Corp.
6.500% 11-24-03 2,000,000 1,951,940
Continental Bank N.A.
11.250% 7-1-01 1,100,000 1,186,933
GNS Financial Corp.
9.250% 3-15-03 1,000,000 1,065,790
4,204,663
Insurance (0.2%)
Reliance Financial Services Corp.
9.480% 11-1-00 150,000 150,000
Securities Brokers (2.9%)
Lehman Brothers, Inc.
7.625% 6-1-06 2,000,000 2,038,520
Industrial (11.8%)
Air Freight (1.6%)
Federal Express Corp.
9.625% 10-15-19 $1,000,000 $1,103,410
Computers (1.4%)
Unisys Corp.
8.875% 7-15-97 1,000,000 1,000,000
Containers & Packaging (1.5%)
Stone Container Corp.
11.875% 8-1-16 1,000,000 1,050,000
Factory Equipment (1.6%)
Penn Central Corp.
10.625% 4-15-00 1,000,000 1,110,420
Other Industrial Services (1.5%)
Figgie International, Inc.
9.875% 10-1-99 1,000,000 1,030,000
Transportation Equipment (2.8%)
AAR Corp.
7.250% 10-15-03 2,000,000 1,964,560
Trucking (1.4%)
Penske Truck Leasing Company
6.550% 9-19-00 1,000,000 1,012,570
Utilities (5.7%)
Electric
El Paso Electric Company
8.250% 2-1-03 1,000,000 1,015,110
8.900% 2-1-06 500,000 517,025
First PV Funding Corp.
10.300% 1-15-14 920,000 978,650
Texas Utilities Electric Company
6.750% 4-1-03 1,500,000 1,497,060
4,007,845
Total Non-Convertible Corporate Bonds
(cost $57,948,035) 59,908,086
<CAPTION>
Description Shares Value
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK (3.2%)
Industrial
Communications
Time Warner, Inc. 144A
(cost $1,999,448 ) 2,096 $2,226,091
<CAPTION>
Description Principal Value
<S> <C> <C>
COMMERCIAL PAPER (8.9%)
Allied Signal Corp.
5.360% 11-5-96 $3,300,000 3,298,035
Triple A One Plus Funding
5.400% 11-7-96 2,904,000 2,901,386
Total Commercial Paper (cost $6,199,421) 6,199,421
SHORT-TERM SECURITIES (0.2%)
State Street Bank & Trust ***
4.000% Repurchase Agreement
dated 10-31-96 to be repurchased
at $123,138 on 11-1-96 (cost $123,125) 123,125 123,125
Total Investments (98.0 %) (cost $66,270,029) 68,456,723
Other Assets in Excess of Liabilities ( 2.0%) 1,413,205
Net Assets (100.0%) $69,869,928
</TABLE>
October 31, 1996
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
TAX-EXEMPT PORTFOLIO
Description ** Principal Value
<S> <C> <C>
MUNICIPAL BONDS (99.7%)
Alaska (3.8%)
Alaska State Housing Finance Corp.,
Mortgage Program, Revenue Bonds,
5.900%, 12-1-33, A+/Aa1 $1,000,000 $982,220
California (0.3%)
Los Angeles, Convention and Exhibition
Center, Certificates of Participation,
9.000%, 12-1-20, AAA/Aaa 50,000 65,441
Florida (4.3%)
Broward County, Resource Recovery,
Revenue Bonds, 7.950%, 12-1-08, A-/A 1,000,000 1,101,750
Hawaii (1.9%)
Secondary Market Services Corp., Student
Loan, Revenue AMT Bonds, Series II,
3.600%, 9-1-10, AA/Aa2 500,000 500,000
Illinois (11.8%)
Calumet City, General Obligation Bonds,
Series B, 5.350%, 1-1-17, NR/Aaa 1,000,000 961,760
Illinois State Dedicated Civic Center Tax,
Revenue Bonds, Series A,
6.000%, 12-15-15, AAA/Aaa 1,000,000 1,005,710
West Chicago, IDR-Leggett and Platt, Inc.
Project, Revenue Bonds, Series 1994,
6.900%, 9-1-24, A/NR 1,000,000 1,042,850
3,010,320
Indiana (4.0%)
Indiana Transportation Finance Authority,
Airport Facility Lease Revenue Series,
1992A, 6.250%, 11-1-16, NR/A 1,000,000 1,022,070
Iowa (14.6%)
Chillicothe, Pollution Control,
Revenue Bonds, Series A,
5.000%, 5-1-23, A+/A2 700,000 700,000
Iowa Finance Authority, Drake University
Project, Revenue Bonds,
5.400%, 12-1-16, AAA/Aaa 1,000,000 971,320
Iowa Higher Education Loan Authority,
St. Ambrose University Project, Revenue
Bonds, 5.750%, 2-1-11, BBB/NR 1,000,000 967,810
Iowa State Certificate of Participation,
Revenue Bonds, Series 1992A,
6.500%, 7-1-06, AAA/Aaa 1,000,000 1,100,250
3,739,380
Kentucky (4.0%)
Jefferson County, Pollution Control,
Revenue Bonds, Series A,
5.900%, 4-15-23, AA/Aa2 1,000,000 1,010,300
Maine (4.0%)
Maine State Housing Authority, Mortgage
Revenue AMT Bonds, Series A-1
6.500%, 11-15-27, AAA/Aaa 1,000,000 1,020,300
Massachusetts (4.0%)
Massachusetts State Housing Finance
Agency, Series 1993A
6.300%, 10-1-13, A+/A1 1,000,000 1,021,520
Michigan (15.5%)
Detroit School District, General Obligation
Bonds, 6.250%, 5-1-12, AA/Aa $1,000,000 $1,041,080
Michigan State Building Authority, Revenue
Refunding Special Sinking Fund, Series
1992A, 6.800%, 10-1-21, AA-/A1 855,000 926,914
Municipal Bond Authority, Pooled Project,
Series B, 5.625%, 10-1-19, AA/Aa 1,000,000 975,440
Royal Oak Hospital Finance Authority,
Revenue Bonds, Series F,
6.250%, 1-1-19, NR/Aa 1,000,000 1,032,490
3,975,924
Minnesota (3.7%)
Farmington, Independent School
District #192, General Obligation Bond,
5.125%, 2-1-15, AAA/Aaa 1,000,000 950,430
Nebraska (4.0%)
Nebraska Higher Education Loan Program,
Revenue AMT Bonds, Series 1992A-6,
6.950%, 6-1-08, NR/A 1,000,000 1,031,220
Nevada (4.0%)
Municipal Bond Authority, Project No. 52,
Series A, 6.000%, 5-15-24, AA/Aa 1,000,000 1,014,790
New York (4.0%)
New York State Local Government
Assistance Corporation, Series 1995A,
6.000%, 4-1-16, A/A 1,000,000 1,016,200
Pennsylvania (0.0%)
Pennsylvania Housing Finance Agency,
Multi-Family Mortgage Revenue
Bonds, Series 1985A,
9.375%, 8-1-28, AAA/Aa 5,000 5,114
South Dakota (3.9%)
Sioux Falls South Dakota School District,
Number 49-5 Refunding Capital Outlay
Certificates, Series 1992B,
5.750%, 7-1-12, AAA/Aaa 1,000,000 1,008,560
Texas (3.9%)
Carroll Independent School District,
General Obligation Bonds,
5.625%, 2-15-19, AAA/Aaa 1,000,000 989,260
Virginia (4.1%)
Virginia State Housing Development
Authority, Multi Family Housing, Series
1995 II, 6.300%, 11-1-15, AAA/Aaa 1,000,000 1,038,910
Wyoming (3.9%)
Wyoming State Farm Loan Board, Capital
Facilities Revenue Bonds,
5.750%, 10-1-20, AA-/NR 1,000,000 998,650
Total Investments (99.7%) (cost $25,184,865) 25,502,359
Other Assets in Excess of Liabilities (0.3%) 73,357
Net Assets (100.0%) $25,575,715
</TABLE>
SCHEDULE OF INVESTMENTS
NOTES TO SCHEDULE OF INVESTMENTS
+ Foreign securities.
@ Notional amount of forward foreign currency contracts and principal amount
of foreign bonds are denominated in the indicated currency: A-Austrian
Schilling; B-British Pound; C-Canadian Dollar; D-German Deutschemark;
F-French Franc; G-Dutch Guilder; H-Phillipines Peso; I-Italian Lira;
J-Japanese Yen; K-Swedish Krona; M-Finnish Markka; R-South African Rand;
S-Swiss Franc; T-Australian Dollar.
# American Depository Receipts or Global Depository Receipts.
## BFI Acquisition Corp. is currently in default on payment of its past two
six month interest payments which were due 12-1-95 and 6-1-96.
* Presently non-income producing.
** Ratings indicated are by Standard and Poor's/Moody's, respectively,
and are unaudited; NR: not rated by this service.
^ Not affiliated with IDEX Management, Inc.
See Note 2 to financial statements for security valuation and other significant
accounting policies.
See Note 5 to financial statements for futures, forward currency contracts and
other derivative transactions.
See Note 6 to financial statements for cost and unrealized appreciation and
depreciation of investments for Federal income tax purposes.
<TABLE>
<CAPTION>
GLOBAL COUNTRY ALLOCATION
f ( % OF NET ASSETS)
<S> <C>
Argentina 0.7 %
Australia 1.0
Austria 1.1
Belgium 1.1
Brazil 1.4
Canada 0.7
Chile 0.3
Denmark 0.2
Finland 2.2
France 3.5
Germany 7.2
Hong Kong 0.6
India 2.0
Israel 0.8
Italy 2.8
Japan 7.6
Luxembourg 1.6
Mexico 2.2
Netherlands 7.3
Norway 0.2
Peru 0.7
Philippines 0.6
Portugal 0.3
Russia 0.3
South Africa 0.2
South Korea 0.7
Spain 0.1
Sweden 8.7
Switzerland 5.9
Taiwan 1.5
Thailand 0.2
United States 7.1
United Kingdom 14.3
Cash & Other 14.9
100.0 %
</TABLE>
*** Aggressive Growth
Collateralized by $165,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $169,678 for this collateral at
October 31, 1996.
*** Capital Appreciation
Collateralized by $55,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $56,559 for this collateral at
October 31, 1996.
*** Global
Collateralized by $53,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $54,503 for this collateral at
October 31, 1996.
*** Growth
Collateralized by $110,000 principal of U.S. Treasury Notes 5.125% due 2/28/98;
market value and accrued interest aggregated $110,194 for this collateral at
October 31, 1996.
*** C.A.S.E.
Collateralized by $130,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $133,685 for this collateral at
October 31, 1996.
*** Tactical Asset Allocation
Collateralized by $32,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $32,907 for this collateral at
October 31, 1996.
*** Equity-Income
Collateralized by $475,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $488,466 for this collateral at
October 31, 1996.
*** Flexible Income
Collateralized by $88,000 principal of U.S. Treasury Notes 7.500% due 12/31/96;
market value and accrued interest aggregated $90,495 for this collateral at
October 31, 1996.
*** Income Plus
Collateralized by $125,000 principal of U.S. Treasury Notes 6.750% due 4/30/00;
market value and accrued interest aggregated $127,891 for this collateral at
October 31, 1996.
October 31, 1996
<TABLE>
<CAPTION>
October 31, 1996
STATEMENTS OF ASSETS AND LIABILITIES
All numbers (except per share amounts) in thousands
Aggressive Capital
Assets: Growth Appreciation Global
<S> <C> <C> <C>
Investment securities, at market value $25,951 $23,331 $147,650
Cash - 209 -
Receivables:
Investment securities sold 349 - 1,909
Shares of beneficial interest sold 70 545 1,838
Interest - - -
Dividends 6 15 158
Due from investment adviser 12 - -
Forward foreign currency contracts - - 570
Other - 2 93
Total assets 26,388 24,102 152,218
Liabilities:
Accounts payable:
Investment securities purchased 202 262 661
Shares of beneficial interest redeemed 32 10 110
Due to custodian 42 - 377
Accrued liabilities:
Management and advisory fees - 8 129
Distribution fees 10 9 52
Transfer agent fees and expenses 15 10 48
Forward foreign currency contracts - 55 283
Other 28 23 131
Total liabilities 329 377 1,791
Net Assets $26,059 $23,725 $150,427
Investment securities, at cost $22,451 $20,318 $125,393
Net asset value per share (net assets divided
by shares outstanding):
Class A shares $15.70 $15.49 $21.39
Class B shares $15.58 $15.42 $21.13
Class C shares $15.60 $15.43 $21.03
Class T shares (1) $- $- $-
Offering price per share (2):
Class A shares $16.61 $16.39 $22.63
Class T shares (1) $- $- $-
Tactical
Asset
Assets: Growth C.A.S.E. Allocation
Investment securities, at market value $1,154,714 $3,625 $18,198
Cash 299 - -
Receivables:
Investment securities sold 2,698 - 84
Shares of beneficial interest sold 5,345 1 71
Interest 810 1 41
Dividends 429 2 9
Due from investment adviser - 32 4
Forward foreign currency contracts 420 - -
Other 37 19 -
Total assets 1,164,752 3,680 18,407
Liabilities:
Accounts payable:
Investment securities purchased 7,876 128 110
Shares of beneficial interest redeemed 851 - 53
Due to custodian - 21 47
Accrued liabilities:
Management and advisory fees 172 - -
Distribution fees 183 2 10
Transfer agent fees and expenses 273 2 6
Forward foreign currency contracts 3 - -
Other 220 6 14
Total liabilities 9,578 159 240
Net Assets $1,155,174 $3,521 $18,167
Investment securities, at cost $828,975 $3,502 $17,493
Net asset value per share (net assets
divided by shares outstanding):
Class A shares $21.97 $10.56 $11.19
Class B shares $21.60 $10.51 $11.18
Class C shares $21.65 $10.52 $11.18
Class T shares (1) $22.17 $- $-
Offering price per share (2):
Class A shares $23.25 $11.17 $11.84
Class T shares (1) $24.23 $- $-
Equity- Flexible
Assets: Income Balanced Income
Investment securities, at market value $15,164 $10,260 $18,293
Cash - 6 11
Receivables:
Investment securities sold 127 86 -
Shares of beneficial interest sold 92 40 11
Interest 57 87 352
Dividends 16 5 -
Due from investment adviser - 9 10
Forward foreign currency contracts - 3 -
Other - 3 -
Total assets 15,456 10,499 18,677
Liabilities:
Accounts payable:
Investment securities purchased 160 186 250
Shares of beneficial interest redeemed 21 - 9
Due to custodian 25 24 -
Accrued liabilities:
Management and advisory fees 3 - -
Distribution fees 6 4 6
Transfer agent fees and expenses 6 4 8
Forward foreign currency contracts - 9 -
Other 15 25 35
Total liabilities 236 252 308
Net Assets $15,220 $10,247 $18,369
Investment securities, at cost $13,847 $9,626 $17,927
Net asset value per share (net assets
divided by shares outstanding):
Class A shares $13.43 $13.58 $9.33
Class B shares $13.42 $13.56 $9.32
Class C shares $13.42 $13.57 $9.32
Class T shares (1) $- $- $-
Offering price per share (2):
Class A shares $14.21 $14.36 $9.80
Class T shares (1) $- $- $-
Income Tax-
Assets: Plus Exempt
Investment securities, at market value $68,457 $25,502
Cash - -
Receivables:
Investment securities sold - -
Shares of beneficial interest sold 297 8
Interest 1,325 478
Dividends - -
Due from investment adviser - 24
Forward foreign currency contracts - -
Other - -
Total assets 70,079 26,012
Liabilities:
Accounts payable:
Investment securities purchased - -
Shares of beneficial interest redeemed 68 344
Due to custodian 44 45
Accrued liabilities:
Management and advisory fees 2 -
Distribution fees 22 8
Transfer agent fees and expenses 8 4
Forward foreign currency contracts - -
Other 65 35
Total liabilities 209 436
Net Assets $69,870 $25,576
Investment securities, at cost $66,270 $25,185
Net asset value per share (net assets
divided by shares outstanding):
Class A shares $10.61 $11.40
Class B shares $10.61 $11.40
Class C shares $10.61 $11.40
Class T shares (1) $- $-
Offering price per share (2):
Class A shares $11.14 $11.97
Class T shares (1) $- $-
</TABLE>
(1) Class T shares are not available to new investors; only existing Class T
shareholders may purchase additional Class T shares.
(2) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth
in the Prospectus. Net asset value per share for Class B and Class C
shares represents offering price. The redemption price for Class B is
computed as net asset value less any applicable contingent deferred sales
charges per share.
For the one month ended October 31, 1996
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
All numbers in thousands Aggressive Capital
Investment Income: Growth Appreciation Global
<S> <C> <C> <C>
Interest $6 $5 $50
Dividends 12 5 75
Withholding taxes on foreign dividends - (1) (8)
18 9 117
Expenses:
Management and advisory fees 23 20 127
Distribution and service fees:
Class A 6 5 40
Class B 2 2 5
Class C 2 2 6
Transfer agent fees and expenses 15 10 49
Custody fees and expenses 2 4 20
Registration fees 5 4 5
Trustees fees and expenses - - 2
Prospectus expenses 1 1 4
Other 5 5 14
Less amounts waived/reimbursed by the
investment adviser (17) (13) -
44 40 272
Custodian earnings and brokerage credits - - (2)
Net expenses 44 40 270
Net investment income (loss) (26) (31) (153)
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 248 (13) 2,426
Net realized gain (loss) from foreign
currency transactions - (14) (13)
Net realized gain (loss) 248 (27) 2,413
Net unrealized appreciation (depreciation)
during the period on:
Investments (301) (317) (2,305)
Translation of assets and liabilities
denominated
in foreign currency - (41) (8)
Net unrealized appreciation (depreciation)
during the period (301) (358) (2,313)
Net gain (loss) on investments and foreign
currency (53) (385) 100
Net increase (decrease) in net assets
resulting from operations $(79) $(416) $(53)
Tactical
Asset
Investment Income: Growth C.A.S.E. Allocation
Interest $917 $3 $36
Dividends 631 2 10
Withholding taxes on foreign dividends (9) - -
1,539 5 46
Expenses:
Management and advisory fees 953 3 15
Distribution and service fees:
Class A 170 1 2
Class B 4 1 4
Class C 9 1 4
Transfer agent fees and expenses 273 2 6
Custody fees and expenses 16 1 2
Registration fees 6 7 6
Trustees fees and expenses 4 - -
Prospectus expenses 17 1 1
Other 53 3 4
Less amounts waived/reimbursed by the
investment adviser - (14) (12)
1,505 6 32
Custodian earnings and brokerage credits - - -
Net expenses 1,505 6 32
Net investment income (loss) 34 (1) 14
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 18,214 12 14
Net realized gain (loss) from foreign
currency transactions (204) - -
Net realized gain (loss) 18,010 12 14
Net unrealized appreciation (depreciation)
during the period on:
Investments (30,545) 21 218
Translation of assets and liabilities
denominated in foreign currency (27) - -
Net unrealized appreciation (depreciation)
during the period (30,572) 21 218
Net gain (loss) on investments and
foreign currency (12,562) 33 232
Net increase (decrease) in net assets
resulting from operations $(12,528) $32 $246
Equity- Flexible
Investment Income: Income Balanced Income
Interest $22 $25 $125
Dividends 20 6 -
Withholding taxes on foreign dividends - - -
42 31 125
Expenses:
Management and advisory fees 13 8 14
Distribution and service fees:
Class A 3 2 4
Class B 1 1 1
Class C 1 1 1
Transfer agent fees and expenses 6 4 9
Custody fees and expenses 1 4 4
Registration fees 5 5 5
Trustees fees and expenses - - -
Prospectus expenses 1 1 1
Other 5 3 9
Less amounts waived/reimbursed by the
investment adviser (11) (13) (18)
25 16 30
Custodian earnings and brokerage credits - - -
Net expenses 25 16 30
Net investment income (loss) 17 15 95
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 36 77 48
Net realized gain (loss) from foreign
currency transactions - (3) -
Net realized gain (loss) 36 74 48
Net unrealized appreciation (depreciation)
during the period on:
Investments 120 (8) 241
Translation of assets and liabilities
denominated in foreign currency - (4) -
Net unrealized appreciation (depreciation)
during the period 120 (12) 241
Net gain (loss) on investments and foreign
currency 156 62 289
Net increase (decrease) in net assets
resulting from operations $173 $77 $384
Income Tax-
Investment Income: Plus Exempt
Interest $407 $122
Dividends - -
Withholding taxes on foreign dividends - -
407 122
Expenses:
Management and advisory fees 35 13
Distribution and service fees:
Class A 19 6
Class B 1 1
Class C 2 1
Transfer agent fees and expenses 10 4
Custody fees and expenses 2 2
Registration fees 1 5
Trustees fees and expenses - -
Prospectus expenses 1 1
Other 9 8
Less amounts waived/reimbursed by the
investment adviser - (19)
80 22
Custodian earnings and brokerage credits - -
Net expenses 80 22
Net investment income (loss) 327 100
Realized and unrealized gain (loss) on
investments and foreign currency:
Net realized gain (loss) on investments 227 (1)
Net realized gain (loss) from foreign
currency transactions - -
Net realized gain (loss) 227 (1)
Net unrealized appreciation (depreciation)
during the period on:
Investments 1,216 97
Translation of assets and liabilities
denominated in foreign currency - -
Net unrealized appreciation (depreciation)
during the period 1,216 97
Net gain (loss) on investments and
foreign currency 1,443 96
Net increase (decrease) in net assets
resulting from operations $1,770 $196
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
All numbers in thousands
Aggressive Growth
1996 (1) 1996 (2)
<S> <C> <C>
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(26) $(279)
Net realized gain (loss) on investments and
foreign currency transactions 248 (1,319)
Net unrealized appreciation (depreciation)
during period (301) 743
Net increase (decrease) in net assets resulting
from operations (79) (855)
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions - (1,314)
- (1,314)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 717 16,192
Shares issued on reinvestment of distributions - 1,094
Cost of shares repurchased (790) (9,999)
Net increase (decrease) from Class A share
transactions (73) 7,287
Class B (3)
Proceeds from sale of shares 200 2,006
Shares issued on reinvestment of distributions - 15
Cost of shares repurchased (1) (256)
Net increase from Class B share transactions 199 1,765
Class C
Proceeds from sale of shares 40 3,772
Shares issued on reinvestment of distributions - 179
Cost of shares repurchased (156) (3,189)
Net increase (decrease) from Class C share
transactions (116) 762
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 10 9,814
Net increase (decrease) in net assets (69) 7,645
Net Assets:
Beginning of period 26,128 18,483
End of period $26,059 $26,128
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $24,014 $24,031
Undistributed net investment income (loss) (1) (1)
Undistributed net realized gain (loss) from
investments and foreign currency transactions (1,455) (1,703)
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 3,501 3,801
Total net assets $26,059 $26,128
Shares of beneficial interest:
Class A
Shares sold 45 1,031
Shares issued on reinvestment of distributions - 73
Shares redeemed (50) (649)
Net increase (decrease) in shares outstanding (5) 455
Shares outstanding at beginning of
period 1,402 947
Shares outstanding at end of period 1,397 1,402
Class B (3)
Shares sold 13 131
Shares issued on reinvestment of distributions - 1
Shares redeemed - (17)
Net increase in shares outstanding 13 115
Shares outstanding at beginning of
period 115 -
Shares outstanding at end of period 128 115
Class C
Shares sold 3 240
Shares issued on reinvestment of distributions - 12
Shares redeemed (10) (206)
Net increase (decrease) in shares outstanding (7) 46
Shares outstanding at beginning of
period 144 98
Shares outstanding at end of period 137 144
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Capital Appreciation
1996 (1) 1996 (2)
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(31) $(67)
Net realized gain (loss) on investments and
foreign currency transactions (27) 431
Net unrealized appreciation (depreciation) during
period (358) 2,216
Net increase (decrease) in net assets resulting
from operations (416) 2,580
Distributions to shareholders:
From net investment income:
Class A - (36)
Class B (3) - (1)
Class C - (2)
Class T - -
- (39)
From net realized gains on investments
and foreign currency transactions - (591)
- (630)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 3,643 14,899
Shares issued on reinvestment of distributions - 453
Cost of shares repurchased (2,667) (4,436)
Net increase (decrease) from Class A share
transactions 976 10,916
Class B (3)
Proceeds from sale of shares 221 2,049
Shares issued on reinvestment of distributions - 8
Cost of shares repurchased (72) (139)
Net increase from Class B share transactions 149 1,918
Class C
Proceeds from sale of shares 113 3,969
Shares issued on reinvestment of distributions - 148
Cost of shares repurchased (201) (4,603)
Net increase (decrease) from Class C share
transactions (88) (486)
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 1,037 12,348
Net increase (decrease) in net assets 621 14,298
Net Assets:
Beginning of period 23,104 8,806
End of period $23,725 $23,104
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $20,480 $19,474
Undistributed net investment income (loss) (1) (1)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 285 312
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 2,961 3,319
Total net assets $23,725 $23,104
Shares of beneficial interest:
Class A
Shares sold 231 990
Shares issued on reinvestment of distributions - 34
Shares redeemed (170) (297)
Net increase (decrease) in shares outstanding 61 727
Shares outstanding at beginning of
period 1,188 461
Shares outstanding at end of period 1,249 1,188
Class B (3)
Shares sold 14 137
Shares issued on reinvestment of distributions - 1
Shares redeemed (5) (9)
Net increase in shares outstanding 9 129
Shares outstanding at beginning of
period 129 -
Shares outstanding at end of period 138 129
Class C
Shares sold 7 264
Shares issued on reinvestment of distributions - 11
Shares redeemed (13) (314)
Net increase (decrease) in shares outstanding (6) (39)
Shares outstanding at beginning of
period 151 190
Shares outstanding at end of period 145 151
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Global
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(153) $(797)
Net realized gain (loss) on investments and
foreign currency transactions 2,413 15,721
Net unrealized appreciation (depreciation)
during period (2,313) 9,941
Net increase (decrease) in net assets resulting
from operations (53) 24,865
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions - (3,252)
- (3,252)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 7,350 38,996
Shares issued on reinvestment of distributions - 3,076
Cost of shares repurchased (2,831) (20,437)
Net increase (decrease) from Class A share
transactions 4,519 21,635
Class B (3)
Proceeds from sale of shares 1,064 5,103
Shares issued on reinvestment of distributions - 6
Cost of shares repurchased (86) (418)
Net increase from Class B share transactions 978 4,691
Class C
Proceeds from sale of shares 736 6,138
Shares issued on reinvestment of distributions - 132
Cost of shares repurchased (181) (2,745)
Net increase (decrease) from Class C share
transactions 555 3,525
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 6,052 29,851
Net increase (decrease) in net assets 5,999 51,464
Net Assets:
Beginning of period 144,428 92,964
End of period $150,427 $144,428
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $112,843 $106,791
Undistributed net investment income (loss) (13) (13)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 15,055 12,795
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 22,542 24,855
Total net assets $150,427 $144,428
Shares of beneficial interest:
Class A
Shares sold 341 1,964
Shares issued on reinvestment of distributions - 177
Shares redeemed (130) (1,045)
Net increase (decrease) in shares outstanding 211 1,096
Shares outstanding at beginning of
period 6,138 5,042
Shares outstanding at end of period 6,349 6,138
Class B (3)
Shares sold 49 257
Shares issued on reinvestment of distributions - -
Shares redeemed (4) (20)
Net increase in shares outstanding 45 237
Shares outstanding at beginning of
period 237 -
Shares outstanding at end of period 282 237
Class C
Shares sold 35 312
Shares issued on reinvestment of distributions - 8
Shares redeemed (9) (140)
Net increase (decrease) in shares outstanding 26 180
Shares outstanding at beginning of
period 384 204
Shares outstanding at end of period 410 384
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of period
Shares outstanding at end of period
Growth
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $34 $(1,197)
Net realized gain (loss) on investments and
foreign currency transactions 18,010 71,706
Net unrealized appreciation (depreciation) during
period (30,572) 223,454
Net increase (decrease) in net assets resulting
from operations (12,528) 293,963
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions - (116,218)
- (116,218)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 15,361 72,429
Shares issued on reinvestment of distributions - 109,915
Cost of shares repurchased (11,670) (93,011)
Net increase (decrease) from Class A share
transactions 3,691 89,333
Class B (3)
Proceeds from sale of shares 790 4,292
Shares issued on reinvestment of distributions - 407
Cost of shares repurchased (18) (99)
Net increase from Class B share transactions 772 4,600
Class C
Proceeds from sale of shares 462 10,618
Shares issued on reinvestment of distributions - 1,761
Cost of shares repurchased (481) (6,194)
Net increase (decrease) from Class C share
transactions (19) 6,185
Class T
Proceeds from sale of shares 3,066 646
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3 - 401,271
Shares issued on reinvestment of distributions - -
Cost of shares repurchased (8,580) (2,536)
Net increase (decrease) from Class T share
transactions (5,514) 399,381
Total net increase (decrease) from share
transactions (1,070) 499,499
Net increase (decrease) in net assets (13,598) 677,244
Net Assets:
Beginning of period 1,168,772 491,528
End of period $1,155,174 $1,168,772
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $805,278 $806,354
Undistributed net investment income (loss) 20 (44)
Undistributed net realized gain (loss) from
investments and foreign currency transactions 23,722 5,735
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 326,154 356,727
Total net assets $1,155,174 $1,168,772
Shares of beneficial interest:
Class A
Shares sold 690 3,212
Shares issued on reinvestment of distributions - 5,188
Shares redeemed (523) (4,120)
Net increase (decrease) in shares outstanding 167 4,280
Shares outstanding at beginning of
period 25,553 21,273
Shares outstanding at end of period 25,720 25,553
Class B (3)
Shares sold 36 193
Shares issued on reinvestment of distributions - 19
Shares redeemed (1) (4)
Net increase in shares outstanding 35 208
Shares outstanding at beginning of
period 208 -
Shares outstanding at end of period 243 208
Class C
Shares sold 21 463
Shares issued on reinvestment of distributions - 84
Shares redeemed (22) (284)
Net increase (decrease) in shares outstanding (1) 263
Shares outstanding at beginning of
period 510 247
Shares outstanding at end of period 509 510
Class T
Shares sold 136 39
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3 - 26,208
Shares issued on reinvestment of distributions - -
Shares redeemed (381) (115)
Net increase (decrease) in shares outstanding (245) 26,132
Shares outstanding at beginning of
period 26,132 -
Shares outstanding at end of period 25,887 26,132
C.A.S.E.
1996 (1) 1996 (4)
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $(1) $175
Net realized gain (loss) on investments and
foreign currency transactions 12 (190)
Net unrealized appreciation (depreciation)
during period 21 103
Net increase (decrease) in net assets resulting
from operations 32 88
Distributions to shareholders:
From net investment income:
Class A - -
Class B (3) - -
Class C - -
Class T - -
- -
From net realized gains on investments
and foreign currency transactions - -
- -
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 211 1,512
Shares issued on reinvestment of distributions - -
Cost of shares repurchased (6) (117)
Net increase (decrease) from Class A share
transactions 205 1,395
Class B (3)
Proceeds from sale of shares 70 1,150
Shares issued on reinvestment of distributions - -
Cost of shares repurchased (22) (77)
Net increase from Class B share transactions 48 1,073
Class C
Proceeds from sale of shares 148 2,876
Shares issued on reinvestment of distributions - -
Cost of shares repurchased (80) (2,264)
Net increase (decrease) from Class C share
transactions 68 612
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 321 3,080
Net increase (decrease) in net assets 353 3,168
Net Assets:
Beginning of period 3,168 -
End of period $3,521 $3,168
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $3,401 $3,080
Undistributed net investment income (loss) 175 175
Undistributed net realized gain (loss) from
investments and foreign currency transactions (178) (190)
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 123 103
Total net assets $3,521 $3,168
Shares of beneficial interest:
Class A
Shares sold 20 151
Shares issued on reinvestment of distributions - -
Shares redeemed (1) (12)
Net increase (decrease) in shares outstanding 19 139
Shares outstanding at beginning of
period 139 -
Shares outstanding at end of period 158 139
Class B (3)
Shares sold 6 113
Shares issued on reinvestment of distributions - -
Shares redeemed (2) (7)
Net increase in shares outstanding 4 106
Shares outstanding at beginning of
period 106 -
Shares outstanding at end of period 110 106
Class C
Shares sold 14 286
Shares issued on reinvestment of distributions - -
Shares redeemed (8) (227)
Net increase (decrease) in shares outstanding 6 59
Shares outstanding at beginning of
period 59 -
Shares outstanding at end of period 65 59
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Tactical Asset Allocation
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $14 $31
Net realized gain (loss) on investments and
foreign currency transactions 14 48
Net unrealized appreciation (depreciation)
during period 218 486
Net increase (decrease) in net assets resulting
from operations 246 565
Distributions to shareholders:
From net investment income:
Class A - (26)
Class B (3) - (1)
Class C - (3)
Class T - -
- (30)
From net realized gains on investments
and foreign currency transactions - -
- (30)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 973 7,751
Shares issued on reinvestment of distributions - 25
Cost of shares repurchased (89) (640)
Net increase (decrease) from Class A share
transactions 884 7,136
Class B (3)
Proceeds from sale of shares 204 5,282
Shares issued on reinvestment of distributions - 1
Cost of shares repurchased (97) (574)
Net increase from Class B share transactions 107 4,709
Class C
Proceeds from sale of shares 225 7,986
Shares issued on reinvestment of distributions - 3
Cost of shares repurchased (185) (3,479)
Net increase (decrease) from Class C share
transactions 40 4,510
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 1,031 16,355
Net increase (decrease) in net assets 1,277 16,890
Net Assets:
Beginning of period 16,890 -
End of period $18,167 $16,890
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $17,386 $16,355
Undistributed net investment income (loss) 14 1
Undistributed net realized gain (loss) from
investments and foreign currency transactions 62 48
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 705 486
Total net assets $18,167 $16,890
Shares of beneficial interest:
Class A
Shares sold 87 728
Shares issued on reinvestment of distributions - 2
Shares redeemed (8) (59)
Net increase (decrease) in shares outstanding 79 671
Shares outstanding at beginning of
period 671 -
Shares outstanding at end of period 750 671
Class B (3)
Shares sold 18 493
Shares issued on reinvestment of distributions - -
Shares redeemed (9) (53)
Net increase in shares outstanding 9 440
Shares outstanding at beginning of
period 440 -
Shares outstanding at end of period 449 440
Class C
Shares sold 20 743
Shares issued on reinvestment of distributions - -
Shares redeemed (16) (322)
Net increase (decrease) in shares outstanding 4 421
Shares outstanding at beginning of
period 421 -
Shares outstanding at end of period 425 421
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Equity-Income
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $17 $153
Net realized gain (loss) on investments and foreign
currency transactions 36 346
Net unrealized appreciation (depreciation) during
period 120 810
Net increase (decrease) in net assets resulting
from operations 173 1,309
Distributions to shareholders:
From net investment income:
Class A - (117)
Class B (3) - (6)
Class C - (9)
Class T - -
- (132)
From net realized gains on investments
and foreign currency transactions - (85)
- (217)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 649 6,798
Shares issued on reinvestment of distributions - 186
Cost of shares repurchased (354) (1,765)
Net increase (decrease) from Class A share
transactions 295 5,219
Class B (3)
Proceeds from sale of shares 132 1,505
Shares issued on reinvestment of distributions - 9
Cost of shares repurchased (3) (42)
Net increase from Class B share transactions 129 1,472
Class C
Proceeds from sale of shares 80 1,659
Shares issued on reinvestment of distributions - 15
Cost of shares repurchased (36) (326)
Net increase (decrease) from Class C share
transactions 44 1,348
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 468 8,039
Net increase (decrease) in net assets 641 9,131
Net Assets:
Beginning of period 14,579 5,448
End of period $15,220 $14,579
Net Assets consist of:
Shares of beneficial interest, unlimited
shares authorized $13,493 $13,025
Undistributed net investment income (loss) 34 17
Undistributed net realized gain (loss) from
investments and foreign currency transactions 376 339
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 1,317 1,198
Total net assets $15,220 $14,579
Shares of beneficial interest:
Class A
Shares sold 48 538
Shares issued on reinvestment of distributions - 15
Shares redeemed (26) (140)
Net increase (decrease) in shares outstanding 22 413
Shares outstanding at beginning of
period 853 440
Shares outstanding at end of period 875 853
Class B (3)
Shares sold 10 118
Shares issued on reinvestment of distributions - 1
Shares redeemed (1) (3)
Net increase in shares outstanding 9 116
Shares outstanding at beginning of
period 116 -
Shares outstanding at end of period 125 116
Class C
Shares sold 6 130
Shares issued on reinvestment of distributions - 1
Shares redeemed (3) (25)
Net increase (decrease) in shares outstanding 3 106
Shares outstanding at beginning of
period 130 24
Shares outstanding at end of period 133 130
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Balanced
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $15 $143
Net realized gain (loss) on investments and
foreign currency transactions 74 1,308
Net unrealized appreciation (depreciation)
during period (12) 212
Net increase (decrease) in net assets resulting
from operations 77 1,663
Distributions to shareholders:
From net investment income:
Class A - (105)
Class B (3) - (4)
Class C - (22)
Class T - -
- (131)
From net realized gains on investments
and foreign currency transactions - (178)
- (309)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 365 4,106
Shares issued on reinvestment of distributions - 201
Cost of shares repurchased (84) (848)
Net increase (decrease) from Class A share
transactions 281 3,459
Class B (3)
Proceeds from sale of shares 203 674
Shares issued on reinvestment of distributions - 5
Cost of shares repurchased (17) (35)
Net increase from Class B share transactions 186 644
Class C
Proceeds from sale of shares 26 790
Shares issued on reinvestment of distributions - 94
Cost of shares repurchased (9) (3,690)
Net increase (decrease) from Class C share
transactions 17 (2,806)
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions 484 1,297
Net increase (decrease) in net assets 561 2,651
Net Assets:
Beginning of period 9,686 7,035
End of period $10,247 $9,686
Net Assets consist of:
Shares of beneficial interest, unlimited
shares authorized $8,239 $7,755
Undistributed net investment income (loss) 23 9
Undistributed net realized gain (loss) from
investments and foreign currency transactions 1,358 1,282
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 627 640
Total net assets $10,247 $9,686
Shares of beneficial interest:
Class A
Shares sold 27 330
Shares issued on reinvestment of distributions - 16
Shares redeemed (6) (68)
Net increase (decrease) in shares outstanding 21 278
Shares outstanding at beginning of
period 598 320
Shares outstanding at end of period 619 598
Class B (3)
Shares sold 15 53
Shares issued on reinvestment of distributions - 1
Shares redeemed (1) (3)
Net increase in shares outstanding 14 51
Shares outstanding at beginning of
period 51 -
Shares outstanding at end of period 65 51
Class C
Shares sold 2 63
Shares issued on reinvestment of distributions - 8
Shares redeemed (1) (294)
Net increase (decrease) in shares outstanding 1 (223)
Shares outstanding at beginning of
period 70 293
Shares outstanding at end of period 71 70
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Flexible Income
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $95 $1,245
Net realized gain (loss) on investments and
foreign currency transactions 48 718
Net unrealized appreciation (depreciation)
during period 241 (710)
Net increase (decrease) in net assets resulting
from operations 384 1,253
Distributions to shareholders:
From net investment income:
Class A (95) (1,143)
Class B (3) (2) (14)
Class C (5) (50)
Class T - -
(102) (1,207)
From net realized gains on investments
and foreign currency transactions - -
(102) (1,207)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 88 1,886
Shares issued on reinvestment of distributions 74 860
Cost of shares repurchased (487) (5,517)
Net increase (decrease) from Class A share
transactions (325) (2,771)
Class B (3)
Proceeds from sale of shares 25 536
Shares issued on reinvestment of distributions 2 10
Cost of shares repurchased (7) (53)
Net increase from Class B share transactions 20 493
Class C
Proceeds from sale of shares 51 661
Shares issued on reinvestment of distributions 4 45
Cost of shares repurchased (105) (376)
Net increase (decrease) from Class C share
transactions (50) 330
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (355) (1,948)
Net increase (decrease) in net assets (73) (1,902)
Net Assets:
Beginning of period 18,442 20,344
End of period $18,369 $18,442
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $20,705 $21,050
Undistributed net investment income (loss) 48 55
Undistributed net realized gain (loss) from
investments and foreign currency transactions (2,750) (2,788)
Net unrealized appreciation of investments and
on translation of assets and liabilities in
foreign currencies 366 125
Total net assets $18,369 $18,442
Shares of beneficial interest:
Class A
Shares sold 9 204
Shares issued on reinvestment of distributions 8 94
Shares redeemed (52) (598)
Net increase (decrease) in shares outstanding (35) (300)
Shares outstanding at beginning of
period 1,858 2,158
Shares outstanding at end of period 1,823 1,858
Class B (3)
Shares sold 3 59
Shares issued on reinvestment of distributions - 1
Shares redeemed (1) (6)
Net increase in shares outstanding 2 54
Shares outstanding at beginning of
period 54 -
Shares outstanding at end of period 56 54
Class C
Shares sold 6 71
Shares issued on reinvestment of distributions - 5
Shares redeemed (11) (41)
Net increase (decrease) in shares outstanding (5) 35
Shares outstanding at beginning of
period 96 61
Shares outstanding at end of period 91 96
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Income Plus
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $327 $4,738
Net realized gain (loss) on investments and
foreign currency transactions 227 782
Net unrealized appreciation (depreciation)
during period 1,216 (491)
Net increase (decrease) in net assets resulting
from operations 1,770 5,029
Distributions to shareholders:
From net investment income:
Class A (397) (4,531)
Class B (3) (4) (29)
Class C (16) (162)
Class T - -
(417) (4,722)
From net realized gains on investments
and foreign currency transactions - -
(417) (4,722)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 477 5,858
Shares issued on reinvestment of distributions 287 3,194
Cost of shares repurchased (1,016) (12,843)
Net increase (decrease) from Class A share
transactions (252) (3,791)
Class B (3)
Proceeds from sale of shares 28 941
Shares issued on reinvestment of distributions 3 20
Cost of shares repurchased (16) (192)
Net increase from Class B share transactions 15 769
Class C
Proceeds from sale of shares 154 1,543
Shares issued on reinvestment of distributions 13 135
Cost of shares repurchased (123) (979)
Net increase (decrease) from Class C share
transactions 44 699
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (193) (2,323)
Net increase (decrease) in net assets 1,160 (2,016)
Net Assets:
Beginning of period 68,710 70,726
End of period $69,870 $68,710
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $66,967 $67,160
Undistributed net investment income (loss) 243 332
Undistributed net realized gain (loss) from
investments and foreign currency transactions 474 248
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 2,186 970
Total net assets $69,870 $68,710
Shares of beneficial interest:
Class A
Shares sold 45 567
Shares issued on reinvestment of distributions 27 310
Shares redeemed (96) (1,244)
Net increase (decrease) in shares outstanding (24) (367)
Shares outstanding at beginning of
period 6,271 6,638
Shares outstanding at end of period 6,247 6,271
Class B (3)
Shares sold 3 91
Shares issued on reinvestment of distributions - 2
Shares redeemed (1) (19)
Net increase in shares outstanding 2 74
Shares outstanding at beginning of
period 74 -
Shares outstanding at end of period 76 74
Class C
Shares sold 15 150
Shares issued on reinvestment of distributions 1 12
Shares redeemed (12) (95)
Net increase (decrease) in shares outstanding 4 67
Shares outstanding at beginning of
period 258 191
Shares outstanding at end of period 262 258
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
Tax-Exempt
1996 (1) 1996
Increase (decrease) in net assets from:
Operations:
Net investment income (loss) $100 $1,296
Net realized gain (loss) on investments and
foreign currency transactions (1) 222
Net unrealized appreciation (depreciation)
during period 97 3
Net increase (decrease) in net assets resulting
from operations 196 1,521
Distributions to shareholders:
From net investment income:
Class A (101) (1,284)
Class B (3) (1) (4)
Class C (3) (26)
Class T - -
(105) (1,314)
From net realized gains on investments
and foreign currency transactions - (164)
(105) (1,478)
Shares of beneficial interest transactions:
Class A
Proceeds from sale of shares 153 1,593
Shares issued on reinvestment of distributions 67 965
Cost of shares repurchased (576) (5,286)
Net increase (decrease) from Class A share
transactions (356) (2,728)
Class B (3)
Proceeds from sale of shares 9 185
Shares issued on reinvestment of distributions - 2
Cost of shares repurchased - -
Net increase from Class B share transactions 9 187
Class C
Proceeds from sale of shares 156 748
Shares issued on reinvestment of distributions 3 22
Cost of shares repurchased (131) (323)
Net increase (decrease) from Class C share
transactions 28 447
Class T
Proceeds from sale of shares
Proceeds in connection with the acquisition of
IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Cost of shares repurchased
Net increase (decrease) from Class T share
transactions
Total net increase (decrease) from share
transactions (319) (2,094)
Net increase (decrease) in net assets (228) (2,051)
Net Assets:
Beginning of period 25,804 27,855
End of period $25,576 $25,804
Net Assets consist of:
Shares of beneficial interest, unlimited shares
authorized $25,042 $25,361
Undistributed net investment income (loss) 44 49
Undistributed net realized gain (loss) from
investments and foreign currency transactions 173 174
Net unrealized appreciation of investments and on
translation of assets and liabilities in
foreign currencies 317 220
Total net assets $25,576 $25,804
Shares of beneficial interest:
Class A
Shares sold 14 140
Shares issued on reinvestment of distributions 6 85
Shares redeemed (51) (466)
Net increase (decrease) in shares outstanding (31) (241)
Shares outstanding at beginning of
period 2,175 2,416
Shares outstanding at end of period 2,144 2,175
Class B (3)
Shares sold 1 17
Shares issued on reinvestment of distributions - -
Shares redeemed - -
Net increase in shares outstanding 1 17
Shares outstanding at beginning of
period 17 -
Shares outstanding at end of period 18 17
Class C
Shares sold 14 66
Shares issued on reinvestment of distributions - 2
Shares redeemed (12) (28)
Net increase (decrease) in shares outstanding 2 40
Shares outstanding at beginning of
period 80 40
Shares outstanding at end of period 82 80
Class T
Shares sold
Shares issued in connection with the acquisition
of IDEX Fund and IDEX Fund 3
Shares issued on reinvestment of distributions
Shares redeemed
Net increase (decrease) in shares outstanding
Shares outstanding at beginning of
period
Shares outstanding at end of period
</TABLE>
(1) For the one month period ended October 31, 1996.
(2) Distributions from net realized gains and net investment income include
distributions in excess of current earnings.
(3) Class B commenced operations on October 1, 1995.
(4) From commencement of investment operations on February 1, 1996 through
September 30, 1996.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected per share data for a share of beneficial interest outstanding
throughout each period:
Net
Net Asset Realized/
Year or Value Net Unrealized
Period Beginning Investment Gain (Loss)
Ended of Period Income (Loss) on Invstmnts
Aggressive Growth
<S> <C> <C> <C> <C> <C>
Class A 10/31/96 (1) $15.75 $(0.01) $(0.04)
09/30/96 (2) 17.68 (0.15) (0.76)
09/30/95 (3) 10.00 (0.14) 7.82
Class B 10/31/96 (1) 15.63 (0.01) (0.04)
09/30/96 (2) 17.64 (0.23) (0.76)
Class C 10/31/96 (1) 15.65 (0.01) (0.04)
09/30/96 (2) 17.64 (0.21) (0.76)
09/30/95 (3) 10.00 (0.18) 7.82
Capital Appreciation
Class A 10/31/96 (1) 15.75 (0.02) (0.24)
09/30/96 (4) 13.54 0.06 3.04
09/30/95 (3) 10.00 (0.03) 3.57
Class B 10/31/96 (1) 15.69 (0.03) (0.24)
09/30/96 13.49 (0.02) 3.04
Class C 10/31/96 (1) 15.70 (0.03) (0.24)
09/30/96 (4) 13.49 - 3.04
09/30/95 (3) 10.00 (0.08) 3.57
Global
Class A 10/31/96 (1) 21.40 (0.02) 0.01
09/30/96 17.73 (0.09) 4.38
09/30/95 15.93 (0.06) 2.42
09/30/94 13.35 (0.04) 2.62
09/30/93 10.00 (0.04) 3.39
Class B 10/31/96 (1) 21.14 (0.02) 0.01
09/30/96 17.57 (0.19) 4.38
Class C 10/31/96 (1) 21.04 (0.02) 0.01
09/30/96 17.46 (0.18) 4.38
09/30/95 15.74 (0.14) 2.42
09/30/94 13.35 (0.23) 2.62
Growth
Class A 10/31/96 (1) 22.21 - (0.24)
09/30/96 22.84 (0.11) 4.66
09/30/95 16.78 (0.05) 6.18
09/30/94 (2) 18.46 0.01 (1.22)
09/30/93 16.46 0.04 2.42
Class B 10/31/96 (1) 21.85 (0.01) (0.24)
09/30/96 22.64 (0.27) 4.66
Class C 10/31/96 (1) 21.91 (0.02) (0.24)
09/30/96 22.64 (0.21) 4.66
09/30/95 16.68 (0.15) 6.18
09/30/94 (2) 18.46 (0.09) (1.22)
Class T 10/31/96 (1) 22.41 - (0.24)
09/30/96 (5) 22.23 - 0.18
C.A.S.E.
Class A 10/31/96 (1) 10.46 (0.07) 0.17
09/30/96 (6) 10.00 0.61 (0.15)
Class B 10/31/96 (1) 10.41 (0.07) 0.17
09/30/96 (6) 10.00 0.56 (0.15)
Class C 10/31/96 (1) 10.42 (0.07) 0.17
09/30/96 (6) 10.00 0.57 (0.15)
Tactical Asset Allocation
Class A 10/31/96 (1) 11.03 0.02 0.14
09/30/96 10.00 0.17 0.94
Class B 10/31/96 (1) 11.02 0.02 0.14
09/30/96 10.00 0.09 0.94
Class C 10/31/96 (1) 11.03 0.01 0.14
09/30/96 10.00 0.11 0.94
Equity-Income
Class A 10/31/96 (1) $13.27 $0.01 $0.15
09/30/96 11.74 0.57 1.28
09/30/95 (3) 10.00 0.09 1.75
Class B 10/31/96 (1) 13.27 - 0.15
09/30/96 11.73 0.50 1.28
Class C 10/31/96 (1) 13.27 - 0.15
09/30/96 11.73 0.52 1.28
09/30/95 (3) 10.00 0.03 1.75
Balanced
Class A 10/31/96 (1) 13.47 0.01 0.10
09/30/96 11.47 0.72 1.77
09/30/95 (3) 10.00 0.05 1.47
Class B 10/31/96 (1) 13.46 - 0.10
09/30/96 11.47 0.63 1.77
Class C 10/31/96 (1) 13.46 0.01 0.10
09/30/96 11.47 0.64 1.77
09/30/95 (3) 10.00 0.01 1.47
Flexible Income
Class A 10/31/96 (1) 9.19 0.20 (0.01)
9/30/96 9.17 2.23 (1.63)
9/30/95 8.83 0.61 0.37
9/30/94 (7) 9.59 0.65 (0.81)
9/30/93 8.95 0.70 0.60
Class B 10/31/96 (1) 9.18 0.20 (0.01)
9/30/96 9.17 2.16 (1.63)
Class C 10/31/96 (1) 9.18 0.20 (0.01)
9/30/96 9.17 2.17 (1.63)
9/30/95 8.83 0.56 0.37
9/30/94 (7) 9.59 0.60 (0.81)
Income Plus
Class A 10/31/96 (1) 10.41 0.22 0.04
9/30/96 10.36 2.72 (1.96)
9/30/95 9.75 0.75 0.71
9/30/94 10.98 0.76 (1.10)
9/30/93 10.55 0.83 0.46
Class B 10/31/96 (1) 10.40 0.23 0.04
9/30/96 10.35 2.65 (1.96)
Class C 10/31/96 (1) 10.40 0.23 0.04
9/30/96 10.35 2.66 (1.96)
9/30/95 9.74 0.69 0.71
9/30/94 10.98 0.66 (1.10)
Tax-Exempt
Class A 10/31/96 (1) 11.36 0.18 (0.09)
9/30/96 11.34 2.13 (1.48)
9/30/95 11.10 0.55 0.29
9/30/94 12.07 0.56 (0.60)
9/30/93 11.62 0.56 0.45
Class B 10/31/96 (1) 11.36 0.17 (0.09)
9/30/96 11.34 2.06 (1.48)
Class C 10/31/96 (1) 11.36 0.17 (0.09)
9/30/96 11.34 2.10 (1.48)
9/30/95 11.10 0.52 0.29
9/30/94 12.07 0.53 (0.60)
Total Income Dividends Distributions
Year or (Loss) From From Net From Net
Period Investment Investment Realized
Ended Operations Income Capital Gains
Aggressive Growth
Class A 10/31/96 (1) $(0.05) $- $-
09/30/96 (2) (0.91) - (1.02)
09/30/95 (3) 7.68 - -
Class B 10/31/96 (1) (0.05) - -
09/30/96 (2) (0.99) - (1.02)
Class C 10/31/96 (1) (0.05) - -
09/30/96 (2) (0.97) - (1.02)
09/30/95 (3) 7.64 - -
Capital Appreciation
Class A 10/31/96 (1) (0.26) - -
09/30/96 (4) 3.10 (0.07) (0.82)
09/30/95 (3) 3.54 - -
Class B 10/31/96 (1) (0.27) - -
09/30/96 3.02 - (0.82)
Class C 10/31/96 (1) (0.27) - -
09/30/96 (4) 3.04 (0.01) (0.82)
09/30/95 (3) 3.49 - -
Global
Class A 10/31/96 (1) (0.01) - -
09/30/96 4.29 - (0.62)
09/30/95 2.36 - (0.56)
09/30/94 2.58 - -
09/30/93 3.35 - -
Class B 10/31/96 (1) (0.01) - -
09/30/96 4.19 - (0.62)
Class C 10/31/96 (1) (0.01) - -
09/30/96 4.20 - (0.62)
09/30/95 2.28 - (0.56)
09/30/94 2.39 - -
Growth
Class A 10/31/96 (1) (0.24) - -
09/30/96 4.55 - (5.18)
09/30/95 6.13 - (0.07)
09/30/94 (2) (1.21) - (0.47)
09/30/93 2.46 (0.07) (0.39)
Class B 10/31/96 (1) (0.25) - -
09/30/96 4.39 - (5.18)
Class C 10/31/96 (1) (0.26) - -
09/30/96 4.45 - (5.18)
09/30/95 6.03 - (0.07)
09/30/94 (2) (1.31) - (0.47)
Class T 10/31/96 (1) (0.24) - -
09/30/96 (5) 0.18 - -
C.A.S.E.
Class A 10/31/96 (1) 0.10 - -
09/30/96 (6) 0.46 - -
Class B 10/31/96 (1) 0.10 - -
09/30/96 (6) 0.41 - -
Class C 10/31/96 (1) 0.10 - -
09/30/96 (6) 0.42 - -
Tactical Asset Allocation
Class A 10/31/96 (1) 0.16 - -
09/30/96 1.11 (0.08) -
Class B 10/31/96 (1) 0.16 - -
09/30/96 1.03 (0.01) -
Class C 10/31/96 (1) 0.15 - -
09/30/96 1.05 (0.02) -
Equity-Income
Class A 10/31/96 (1) $0.16 $- $-
09/30/96 1.85 (0.17) (0.15)
09/30/95 (3) 1.84 (0.10) -
Class B 10/31/96 (1) 0.15 - -
09/30/96 1.78 (0.09) (0.15)
Class C 10/31/96 (1) 0.15 - -
09/30/96 1.80 (0.11) (0.15)
09/30/95 (3) 1.78 (0.05) -
Balanced
Class A 10/31/96 (1) 0.11 - -
09/30/96 2.49 (0.21) (0.28)
09/30/95 (3) 1.52 (0.05) -
Class B 10/31/96 (1) 0.10 - -
09/30/96 2.40 (0.13) (0.28)
Class C 10/31/96 (1) 0.11 - -
09/30/96 2.41 (0.14) (0.28)
09/30/95 (3) 1.48 (0.01) -
Flexible Income
Class A 10/31/96 (1) 0.19 (0.05) -
9/30/96 0.60 (0.58) -
9/30/95 0.98 (0.64) -
9/30/94 (7) (0.16) (0.60) -
9/30/93 1.30 (0.66) -
Class B 10/31/96 (1) 0.19 (0.05) -
9/30/96 0.53 (0.52) -
Class C 10/31/96 (1) 0.19 (0.05) -
9/30/96 0.54 (0.53) -
9/30/95 0.93 (0.59) -
9/30/94 (7) (0.21) (0.55) -
Income Plus
Class A 10/31/96 (1) 0.26 (0.06) -
9/30/96 0.76 (0.71) -
9/30/95 1.46 (0.75) (0.10)
9/30/94 (0.34) (0.75) (0.14)
9/30/93 1.29 (0.81) (0.05)
Class B 10/31/96 (1) 0.27 (0.06) -
9/30/96 0.69 (0.64) -
Class C 10/31/96 (1) 0.27 (0.06) -
9/30/96 0.70 (0.65) -
9/30/95 1.40 (0.69) (0.10)
9/30/94 (0.44) (0.66) (0.14)
Tax-Exempt
Class A 10/31/96 (1) 0.09 (0.05) -
9/30/96 0.65 (0.56) (0.07)
9/30/95 0.84 (0.56) (0.04)
9/30/94 (0.04) (0.54) (0.39)
9/30/93 1.01 (0.54) (0.02)
Class B 10/31/96 (1) 0.08 (0.04) -
9/30/96 0.58 (0.49) (0.07)
Class C 10/31/96 (1) 0.08 (0.04) -
9/30/96 0.62 (0.53) (0.07)
9/30/95 0.81 (0.53) (0.04)
9/30/94 (0.07) (0.51) (0.39)
Net Asset
Year or Value
Period Total End Total
Ended Distributions of Period Return (8)
Aggressive Growth
Class A 10/31/96 (1) $- $15.70 (0.32)%
09/30/96 (2) (1.02) 15.75 (4.91)
09/30/95 (3) - 17.68 76.80
Class B 10/31/96 (1) - 15.58 (0.32)
09/30/96 (2) (1.02) 15.63 (5.33)
Class C 10/31/96 (1) - 15.60 (0.32)
09/30/96 (2) (1.02) 15.65 (5.22)
09/30/95 (3) - 17.64 76.40
Capital Appreciation
Class A 10/31/96 (1) - 15.49 (1.59)
09/30/96 (4) (0.89) 15.75 24.35
09/30/95 (3) - 13.54 35.40
Class B 10/31/96 (1) - 15.42 (1.66)
09/30/96 (0.82) 15.69 23.63
Class C 10/31/96 (1) - 15.43 (1.66)
09/30/96 (4) (0.83) 15.70 23.81
09/30/95 (3) - 13.49 34.90
Global
Class A 10/31/96 (1) - 21.39 (0.05)
09/30/96 (0.62) 21.40 25.04
09/30/95 (0.56) 17.73 15.47
09/30/94 - 15.93 19.33
09/30/93 - 13.35 33.52
Class B 10/31/96 (1) - 21.13 (0.05)
09/30/96 (0.62) 21.14 24.70
Class C 10/31/96 (1) - 21.03 (0.05)
09/30/96 (0.62) 21.04 24.91
09/30/95 (0.56) 17.46 15.14
09/30/94 - 15.74 17.90
Growth
Class A 10/31/96 (1) - 21.97 (1.09)
09/30/96 (5.18) 22.21 22.41
09/30/95 (0.07) 22.84 36.70
09/30/94 (2) (0.47) 16.78 (6.72)
09/30/93 (0.46) 18.46 15.13
Class B 10/31/96 (1) - 21.60 (1.14)
09/30/96 (5.18) 21.85 21.87 Class C 10/31/96
(1) - 21.65 (1.19)
09/30/96 (5.18) 21.91 22.15
09/30/95 (0.07) 22.64 36.32
09/30/94 (2) (0.47) 16.68 (7.72)
Class T 10/31/96 (1) - 22.17 (1.03)
09/30/96 (5) - 22.41 0.81
C.A.S.E.
Class A 10/31/96 (1) - 10.56 0.96
09/30/96 (6) - 10.46 4.60
Class B 10/31/96 (1) - 10.51 0.96
09/30/96 (6) - 10.41 4.10
Class C 10/31/96 (1) - 10.52 0.96
09/30/96 (6) - 10.42 4.20
Tactical Asset Allocation
Class A 10/31/96 (1) - 11.19 1.45
09/30/96 (0.08) 11.03 11.07
Class B 10/31/96 (1) - 11.18 1.45
09/30/96 (0.01) 11.02 10.39
Class C 10/31/96 (1) - 11.18 1.36
09/30/96 (0.02) 11.03 10.50
Equity-Income
Class A 10/31/96 (1) $- $13.43 1.20%
09/30/96 (0.32) 13.27 16.00
09/30/95 (3) (0.10) 11.74 18.43
Class B 10/31/96 (1) - 13.42 1.13
09/30/96 (0.24) 13.27 15.38
Class C 10/31/96 (1) - 13.42 1.13
09/30/96 (0.26) 13.27 15.49
09/30/95 (3) (0.05) 11.73 17.95
Balanced
Class A 10/31/96 (1) - 13.58 0.81
09/30/96 (0.49) 13.47 22.12
09/30/95 (3) (0.05) 11.47 15.27
Class B 10/31/96 (1) - 13.56 0.74
09/30/96 (0.41) 13.46 21.38
Class C 10/31/96 (1) - 13.57 0.81
09/30/96 (0.42) 13.46 21.49
09/30/95 (3) (0.01) 11.47 14.77
Flexible Income
Class A 10/31/96 (1) (0.05) 9.33 2.08
9/30/96 (0.58) 9.19 6.73
9/30/95 (0.64) 9.17 11.57
9/30/94 (7) (0.60) 8.83 (1.54)
9/30/93 (0.66) 9.59 13.66
Class B 10/31/96 (1) (0.05) 9.32 2.04
9/30/96 (0.52) 9.18 5.94
Class C 10/31/96 (1) (0.05) 9.32 2.04
9/30/96 (0.53) 9.18 6.03
9/30/95 (0.59) 9.17 10.95
9/30/94 (7) (0.55) 8.83 (2.15)
Income Plus
Class A 10/31/96 (1) (0.06) 10.61 2.53
9/30/96 (0.71) 10.41 7.64
9/30/95 (0.85) 10.36 15.85
9/30/94 (0.89) 9.75 (3.28)
9/30/93 (0.86) 10.98 12.80
Class B 10/31/96 (1) (0.06) 10.61 2.59
9/30/96 (0.64) 10.40 6.95
Class C 10/31/96 (1) (0.06) 10.61 2.59
9/30/96 (0.65) 10.40 7.05
9/30/95 (0.79) 10.35 15.08
9/30/94 (0.80) 9.74 (4.55)
Tax-Exempt
Class A 10/31/96 (1) (0.05) 11.40 0.76
9/30/96 (0.63) 11.36 5.89
9/30/95 (0.60) 11.34 7.75
9/30/94 (0.93) 11.10 (0.41)
9/30/93 (0.56) 12.07 8.97
Class B 10/31/96 (1) (0.04) 11.40 0.71
9/30/96 (0.56) 11.36 5.21
Class C 10/31/96 (1) (0.04) 11.40 0.74
9/30/96 (0.60) 11.36 5.63
9/30/95 (0.57) 11.34 7.48
9/30/94 (0.90) 11.10 (0.73)
<CAPTION>
Year or Net Assets Ratio of Expenses to
Year or End of Average Net Assets (9) (10)
Period Period Without
Ended (000's) Gross Reimbursement Net
Aggressive Growth
<S> <C> <C> <C> <C> <C> <C>
Class A 10/31/96 (1) $21,938 1.85% 2.62% 1.85%
09/30/96 (2) 22,078 1.85 2.60 1.85
09/30/95 (3) 16,747 2.85 3.35 2.85
Class B 10/31/96 (1) 1,992 2.50 3.27 2.50
09/30/96 (2) 1,800 2.50 3.25 2.50
Class C 10/31/96 (1) 2,129 2.40 3.17 2.40
09/30/96 (2) 2,250 2.40 3.15 2.40
09/30/95 (3) 1,736 3.40 3.91 3.40
Capital Appreciation
Class A 10/31/96 (1) 19,350 1.85 2.48 1.85
09/30/96 (4) 18,713 1.85 2.72 1.85
09/30/95 (3) 6,241 2.90 4.17 2.85
Class B 10/31/96 (1) 2,132 2.50 3.13 2.50
09/30/96 2,022 2.50 3.37 2.50
Class C 10/31/96 (1) 2,243 2.40 3.03 2.40
09/30/96 (4) 2,369 2.40 3.27 2.40
09/30/95 (3) 2,565 3.45 4.72 3.40
Global
Class A 10/31/96 (1) 135,837 2.08 - 2.07
09/30/96 131,347 2.09 - 2.06
09/30/95 89,397 2.10 - 1.97
09/30/94 81,241 2.14 - -
09/30/93 17,430 2.84 3.65 -
Class B 10/31/96 (1) 5,966 2.73 - 2.72
09/30/96 5,000 2.74 - 2.71
Class C 10/31/96 (1) 8,624 2.63 - 2.62
09/30/96 8,081 2.64 - 2.61
09/30/95 3,567 2.65 - 2.52
09/30/94 3,571 4.04 - -
Growth
Class A 10/31/96 (1) 565,032 1.68 - 1.68
09/30/96 567,564 1.83 - 1.82
09/30/95 485,935 1.86 - 1.84
09/30/94 (2) 431,207 1.76 - -
09/30/93 548,564 1.61 - -
Class B 10/31/96 (1) 5,242 2.32 - 2.32
09/30/96 4,536 2.46 - 2.45
Class C 10/31/96 (1) 11,016 2.23 - 2.23
09/30/96 11,167 2.34 - 2.33
09/30/95 5,593 2.41 - 2.38
09/30/94 (2) 3,423 3.48 - -
Class T 10/31/96 (1) 573,884 1.33 - 1.33
09/30/96 (5) 585,505 1.18 - 1.17
C.A.S.E.
Class A 10/31/96 (1) 1,675 1.85 6.79 1.84
09/30/96 (6) 1,455 2.85 5.89 2.85
Class B 10/31/96 (1) 1,159 2.50 7.44 2.49
09/30/96 (6) 1,100 3.50 6.54 3.50
Class C 10/31/96 (1) 687 2.40 7.34 2.39
09/30/96 (6) 613 3.40 6.44 3.40
Tactical Asset Allocation
Class A 10/31/96 (1) 8,396 1.85 2.65 1.85
09/30/96 7,401 2.85 3.20 2.85
Class B 10/31/96 (1) 5,013 2.50 3.30 2.50
09/30/96 4,848 3.50 3.85 3.50
Class C 10/31/96 (1) 4,758 2.40 3.20 2.40
09/30/96 4,641 3.40 3.75 3.40
Equity-Income
Class A 10/31/96 (1) $11,744 1.85% 2.76% 1.82%
09/30/96 11,314 1.85 2.79 1.79
09/30/95 (3) 5,167 2.99 4.57 2.85
Class B 10/31/96 (1) 1,684 2.50 3.40 2.47
09/30/96 1,537 2.50 3.44 2.44
Class C 10/31/96 (1) 1,792 2.40 3.30 2.37
09/30/96 1,728 2.40 3.34 2.34
09/30/95 (3) 281 3.54 5.12 3.40
Balanced
Class A 10/31/96 (1) 8,402 1.85 3.44 1.85
09/30/96 8,056 1.85 3.11 1.85
09/30/95 (3) 3,670 2.92 4.48 2.85
Class B 10/31/96 (1) 878 2.50 4.09 2.50
09/30/96 687 2.50 3.76 2.50
Class C 10/31/96 (1) 967 2.40 3.99 2.40
09/30/96 943 2.40 3.66 2.40
09/30/95 (3) 3,365 3.47 5.03 3.40
Flexible Income
Class A 10/31/96 (1) 17,001 1.85 2.98 1.85
9/30/96 17,065 1.85 2.07 1.85
9/30/95 19,786 1.87 1.94 1.85
9/30/94 (7) 21,527 1.85 2.13 -
9/30/93 29,232 1.50 1.56 -
Class B 10/31/96 (1) 522 2.50 3.63 2.50
9/30/96 494 2.50 2.72 2.50
Class C 10/31/96 (1) 846 2.40 3.53 2.40
9/30/96 883 2.40 2.62 2.40
9/30/95 558 2.42 2.49 2.40
9/30/94 (7) 691 2.40 8.59 -
Income Plus
Class A 10/31/96 (1) 66,285 1.33 - 1.32
9/30/96 65,252 1.33 - 1.31
9/30/95 68,746 1.29 - 1.26
9/30/94 63,995 1.33 - -
9/30/93 72,401 1.33 - -
Class B 10/31/96 (1) 804 1.98 - 1.97
9/30/96 774 1.98 - 1.96
Class C 10/31/96 (1) 2,781 1.88 - 1.87
9/30/96 2,684 1.88 - 1.86
9/30/95 1,980 1.84 - 1.81
9/30/94 2,112 3.52 - -
Tax-Exempt
Class A 10/31/96 (1) 24,439 1.00 1.89 1.00
9/30/96 24,708 1.00 1.46 1.00
9/30/95 27,401 1.02 1.35 1.00
9/30/94 29,096 1.00 1.30 -
9/30/93 30,717 1.00 1.43 -
Class B 10/31/96 (1) 198 1.65 2.54 1.65
9/30/96 189 1.65 2.11 1.65
Class C 10/31/96 (1) 939 1.25 2.14 1.25
9/30/96 907 1.25 1.71 1.25
9/30/95 454 1.27 1.60 1.25
9/30/94 277 1.25 20.88 -
<CAPTION>
Ratio of Net
Investment
Year or Income (Loss) Portfolio Average
Period to Average Turnover Commission
Ended Net Assets (10) Rate (11) Rate (12)
Aggressive Growth
<S> <C> <C> <C> <C> <C>
Class A 10/31/96 (1) (1.06)% 9.40% $0.0662
09/30/96 (2) (1.15) 127.49 0.0715
09/30/95 (3) (2.39) 88.28 -
Class B 10/31/96 (1) (1.71) 9.40 0.0662
09/30/96 (2) (1.80) 127.49 0.0715
Class C 10/31/96 (1) (1.62) 9.40 0.0662
09/30/96 (2) (1.70) 127.49 0.0715
09/30/95 (3) (2.94) 88.28 -
Capital Appreciation
Class A 10/31/96 (1) (1.41) 10.11 0.0340
09/30/96 (4) (0.35) 160.72 0.0369
09/30/95 (3) 0.75 262.97 -
Class B 10/31/96 (1) (2.06) 10.11 0.0340
09/30/96 (1.00) 160.72 0.0369
Class C 10/31/96 (1) (1.96) 10.11 0.0340
09/30/96 (4) (0.90) 160.72 0.0369
09/30/95 (3) 0.20 262.97 -
Global
Class A 10/31/96 (1) (1.15) 2.59 0.0520
09/30/96 (0.67) 97.94 0.0489
09/30/95 (0.43) 161.48 -
09/30/94 (0.55) 148.01 -
09/30/93 (0.87) 116.98 -
Class B 10/31/96 (1) (1.80) 2.59 0.0520
09/30/96 (1.32) 97.94 0.0489
Class C 10/31/96 (1) (1.70) 2.59 0.0520
09/30/96 (1.22) 97.94 0.0489 09/30/95
(0.98) 161.48 - 09/30/94 (2.46)
148.01 -
Growth
Class A 10/31/96 (1) (0.13) 9.40 0.0360
09/30/96 (0.22) 57.80 0.0385 09/30/95
(0.26) 123.26 - 09/30/94 (2) 0.04
63.73 - 09/30/93 0.29 97.40
- -
Class B 10/31/96 (1) (0.78) 9.40 0.0360
09/30/96 (0.86) 57.80 0.0385
Class C 10/31/96 (1) (0.68) 9.40 0.0360
09/30/96 (0.77) 57.80 0.0385
09/30/95 (0.81) 123.26 -
09/30/94 (2) (1.68) 63.73 -
Class T 10/31/96 (1) (0.20) 9.40 0.0360
09/30/96 (5) 0.36 57.80 0.0385
C.A.S.E.
Class A 10/31/96 (1) 0.27 20.69 0.0603
09/30/96 (6) 10.00 654.49 0.0396
Class B 10/31/96 (1) 0.38 20.69 0.0603
09/30/96 (6) 9.35 654.49 0.0396
Class C 10/31/96 (1) 0.28 20.69 0.0603
09/30/96 (6) 9.45 654.49 0.0396
Tactical Asset Allocation
Class A 10/31/96 (1) 1.26 2.38 0.0800
09/30/96 0.72 56.22 0.0828
Class B 10/31/96 (1) 0.61 2.38 0.0800
09/30/96 0.07 56.22 0.0828
Class C 10/31/96 (1) 0.71 2.38 0.0800
09/30/96 0.17 56.22 0.0828
Equity-Income
Class A 10/31/96 (1) 1.47% 5.50% $0.0591
09/30/96 1.67 40.58 0.0622
09/30/95 (3) 0.85 34.67 -
Class B 10/31/96 (1) 0.82 5.50 0.0591
09/30/96 1.02 40.58 0.0622
Class C 10/31/96 (1) 0.92 5.50 0.0591
09/30/96 1.12 40.58 0.0622
09/30/95 (3) 0.30 34.67 -
Balanced
Class A 10/31/96 (1) 1.84 9.08 0.0408
09/30/96 1.87 175.78 0.0443
09/30/95 (3) 0.56 82.48 -
Class B 10/31/96 (1) 1.18 9.08 0.0408
09/30/96 1.22 175.78 0.0443
Class C 10/31/96 (1) 1.28 9.08 0.0408
09/30/96 1.32 175.78 0.0443
09/30/95 (3) 0.01 82.48 -
Flexible Income
Class A 10/31/96 (1) 6.15 16.16 -
9/30/96 6.46 135.38 -
9/30/95 7.03 149.58 -
9/30/94 (7) 6.57 105.40 -
9/30/93 7.76 138.86 -
Class B 10/31/96 (1) 5.50 16.16 -
9/30/96 5.81 135.38 -
Class C 10/31/96 (1) 5.60 16.16 -
9/30/96 5.91 135.38 -
9/30/95 6.48 149.58 -
9/30/94 (7) 6.03 105.40 -
Income Plus
Class A 10/31/96 (1) 5.60 1.58 -
9/30/96 6.89 65.96 -
9/30/95 7.53 25.07 -
9/30/94 7.35 48.12 -
9/30/93 7.73 54.51 -
Class B 10/31/96 (1) 4.95 1.58 -
9/30/96 6.24 65.96 -
Class C 10/31/96 (1) 5.05 1.58 -
9/30/96 6.34 65.96 -
9/30/95 6.98 25.07 -
9/30/94 5.16 48.12 -
Tax-Exempt
Class A 10/31/96 (1) 4.60 3.79 -
9/30/96 4.88 71.05 -
9/30/95 4.83 126.48 -
9/30/94 4.83 59.84 -
9/30/93 4.83 91.03 -
Class B 10/31/96 (1) 3.94 3.79 -
9/30/96 4.23 71.05 -
Class C 10/31/96 (1) 4.34 3.79 -
9/30/96 4.63 71.05 -
9/30/95 4.58 126.48 -
9/30/94 4.58 59.84 -
</TABLE>
See notes to the financial highlights.
The notes to financial statements are an integral part of these statements.
FINANCIAL HIGHLIGHTS (continued)
Notes to Financial Highlights
(1) For the one month ended October 31, 1996.
(2) Distributions from net realized capital gains include distributions in
excess of current net realized capital gains.
(3) From commencement of operations, December 2, 1994.
(4) Dividends from net investment income include distributions in excess of
current net investment income.
(5) From commencement of operations, September 20, 1996.
(6) From commencement of operations, February 1, 1996.
(7) On October 1, 1993, Flexible Income Class A initiated a 12b-1 plan of
distribution.
(8) Total return has been calculated for the period ended September 30, 1996
without deduction of a sales load, if any, on an initial purchase for Class A or
Class T shares.
(9) Ratio of expenses to average net assets include:
Gross expenses (expenses less amounts waived/reimbursed by the
investment adviser)
Without reimbursement expenses (expenses without waived/reimbursed
amounts by the investment adviser)
Net expenses (expenses less amounts waived/reimbursed by the investment
adviser and reduced by affiliated brokerage and custody earnings credits)
(10) Short periods (where applicable) are annualized.
(11) This rate is calculated by dividing the lesser of the portfolio's
respective long-term purchases or sales by the average value of it's Portfolio's
long-term investments
during the period. Growth acquisition of investment securities of IDEX
Fund and IDEX Fund 3 has been eliminated from the September 30, 1996 portfolio
turnover
calculation. Short periods (where applicable) are not annualized.
(12) This rate is calculated by dividing total commissions paid on purchases and
sales of securities during the period by total shares purchased or sold in those
same
transactions and is reported for periods ended September 30, 1996 and
forward to the extent that commissionable trades constitute more than 10% of the
average
net assets for the period.
IDEX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 1. Organization:
IDEX Series Fund ("IDEX Series") is a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company. IDEX Series is comprised
of eleven portfolios (each a "Portfolio" and collectively the "Portfolios"):
IDEX Aggressive Growth Portfolio ("Aggressive Growth"), IDEX Capital
Appreciation Portfolio ("Capital Appreciation"), IDEX Global Portfolio
("Global"), IDEX Growth Portfolio ("Growth"), IDEX C.A.S.E. Portfolio
("C.A.S.E."), IDEX Tactical Asset Allocation Portfolio ("Tactical Asset
Allocation"), IDEX Equity-Income Portfolio ("Equity-Income"), IDEX Balanced
Portfolio ("Balanced"), IDEX Flexible Income Portfolio ("Flexible Income"),
IDEX Income Plus Portfolio ("Income Plus"), and IDEX Tax-Exempt Portfolio
("Tax-Exempt"). All Portfolios are diversified except Capital Appreciation.
Aggressive Growth, Capital Appreciation, Balanced and Equity-Income commenced
investment operations on December 2, 1994. Tactical Asset Allocation and
C.A.S.E. commenced investment operations on October 1, 1995 and February 1,
1996, respectively. On September 20, 1996, IDEX II Series Fund changed its name
to IDEX Series Fund.
Each Portfolio of IDEX Series is authorized to offer investors a choice of
three classes of shares (four classes of shares for Growth; Class T shares is
closed to new investors), each with a public offering price that reflects
different sales charges, if any, and expense levels. Each class of shares has
equal rights with respect to portfolio assets and voting privileges. Each class
has exclusive rights with respect to its distribution plan or any other matters
involving only that class. Income, non-class specific expenses, realized and
unrealized gains and losses are allocated daily to each class of shares based on
a simultaneous equation methodology. Dividends and other distributions are
calculated in a similar manner and are paid at the same time for each class of
shares.
On September 20, 1996, Growth acquired all the net assets of IDEX Fund and
IDEX Fund 3 pursuant to a plan of reorganization approved by the shareholders of
IDEX Fund and IDEX Fund 3 on September 16, 1996. The acquisition was
accomplished by a tax-free exchange of 26,208,265 shares of Growth Portfolio
Class T (valued at $582,705,330) for the 17,475,657 and 10,165,001 shares of
IDEX Fund and IDEX Fund 3, respectively, outstanding on September 20, 1996. The
net assets of IDEX Fund and IDEX Fund 3 ($399,060,417 and $182,740,970,
respectively), including $190,375,384 of appreciation and $8,828,848 of
depreciation of the combined investments of IDEX Fund and IDEX Fund 3, were
combined with those of the Growth Portfolio. The aggregate net assets of the
Growth Portfolio immediately after the acquisition aggregated $1,162,128,057.
On October 1, 1996, IDEX Series Fund changed its fiscal year end from
September 30 to October 31.
NOTE 2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed
consistently by the Portfolios in the preparation of their financial statements;
the policies are in conformity with generally accepted accounting principles.
A. Security valuations: Investments of the Portfolios traded on a national
securities exchange and the NASDAQ National Market System are stated at the last
reported sales price on the day of valuation; securities traded in the over-the-
counter market and listed securities for which no sale was reported on that date
are valued at the last quoted bid price. Foreign securities are converted to
U.S. dollars using exchange rates at the close of the New York Stock Exchange.
Long-term debt securities are valued by major independent providers of pricing
services. Short-term debt securities are valued at amortized cost, which
approximates market. Other securities for which quotations are not readily
available are valued at fair value determined in such manner as the sub-
advisers, under the supervision of the Board of Trustees, decide in good faith.
B. Security transactions and related investment income: Security transactions
are accounted for on the trade date (date the order to buy or sell is executed).
Securities gains and losses are calculated on the specific identification basis
and dividend income is recorded on the ex-dividend date for both financial and
Federal tax reporting purposes; interest income is recorded on the accrual
basis, including amortization of premium and discount. Original issue discount
(as defined in the Internal Revenue Code) and market premium and discount are
amortized for both financial and Federal tax reporting purposes over the
remaining life of the related bonds.
C. Foreign currency translation: Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Portfolios
combine fluctuations from currency exchange rates and fluctuations in market
value when computing net realized and unrealized gain or loss from investments.
Transaction gains or losses resulting from changes in exchange rates during the
reporting period or upon settlement of the foreign currency transactions are
reported in the Statement of Operations for the current period. Foreign
denominated assets and the use of forward contracts may involve risks not
typically associated with domestic transactions, including unanticipated
movements in exchange rates, the degree of government supervision and regulation
of security markets, and the possibility of political or economic instability.
D. Federal taxes: It is the policy of the Portfolios to distribute all income
and realized net capital gains to shareholders and otherwise qualify as
regulated investment companies under Subchapter M of the Internal Revenue Code.
In addition, the Portfolios intend to pay distributions as required to avoid
excise taxes. Accordingly, no provisions have been made for Federal taxes.
E. Distributions to shareholders: Dividends and distributions are recorded by
the Portfolios on the ex-dividend date. Income and capital gain distributions
are determined in accordance with Federal income tax regulations which may
differ from generally accepted accounting principles. Accordingly, permanent
book and tax basis differences relating to Portfolio earnings and shareholder
distributions are reclassified as necessary among components of net assets.
Additionally, certain amounts have been reclassified between undistributed net
investment income and undistributed net realized gains to more appropriately
conform financial accounting and tax characterizations of dividend
distributions.
F. Estimates: 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 in
the financial statements. Actual results could differ from those estimates.
NOTE 3. Investment Advisory and Other Payments To/From Affiliates:
Idex Management, Inc. ("IMI") is the investment adviser for Capital
Appreciation, Global, Growth, Balanced and Flexible Income; InterSecurities,
Inc. ("ISI") is the investment adviser for Aggressive Growth, C.A.S.E., Tactical
Asset Allocation, Equity-Income, Income Plus and Tax-Exempt. In addition, ISI
is the Portfolios' underwriter. Idex Investor Services, Inc. ("IIS") is the
Portfolios' transfer agent. IMI is owned equally by AUSA Holding Company
("AUSA") and Janus Capital Corporation ("JCC"). ISI and IIS are 100% owned by
AUSA. AUSA is a wholly-owned subsidiary of AEGON N.V., a Netherlands
corporation.
Each eligible Trustee of the IDEX Series who is not an officer or affiliated
person as defined under the Investment Company Act of 1940, as amended, may
elect to participate in the Deferred Compensation Plan for Trustees of IDEX
Series Fund (the Plan). Under the Plan, such Trustees may elect to defer
payment of a percentage of their total fees earned as a Trustee of the Fund.
These deferred amounts may be invested in any Portfolio of the IDEX Series.
Invested plan amounts are included in other assets. The total liability for
deferred compensation to Trustees under the Plan at October 31, 1996, is
included in other liabilities in the accompanying Statement of Assets and
Liabilities and was as follows:
Aggressive Growth $ 1,063 Equity-Income $ 590
Capital Appreciation 939 Balanced 394
Global 5,877 Flexible Income 755
Growth 47,635 Income Plus 2,798
C.A.S.E. 128 Tax-Exempt 1,052
Tactical Asset Allocation 680 Total 61,911
Under each Portfolio's Management and Investment Advisory Agreement, the
Portfolios pay management fees based upon average daily net assets to their
respective investment advisers. The Portfolios will be reimbursed by their
advisers to the extent that certain operating expenses exceed the lesser of a
stated annual limitation or any limitation imposed by the most restrictive state
law. The Portfolios have a 12b-1 distribution plan under the 1940 Act pursuant
to which an annual fee based on daily net assets is paid to ISI for various
disbursements such as broker-dealer account servicing fees and other promotional
expenses of the Portfolios. The 12b-1 fee for all Portfolios is comprised of a
0.25% service fee and the remaining amount is an asset-based sales
charge/distribution fee. The Portfolios reimburse IIS for transfer agent
expenses and pay fees which include a monthly per open account fee of $1.2583
plus $2.63 for each new account opened.
Payments To/From Affiliates (continued):
<TABLE>
<CAPTION>
For the period ended October 31, 1996:
Mgmt Exp 12b-1 Fees ISI Underwriter Cntngnt
Fee(1) Limit(2) Cls A Cls B Cls C Received Retained Sales
Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aggressive
Growth 1.00% 1.50% 0.35% 1.00% 0.90% $ 25,967 $ 3,677 $ 25
Capital
Appreciat 1.00% 1.50% 0.35% 1.00% 0.90% 47,565 8,052 29
Global 1.00% 2.00% 0.35% 1.00% 0.90% 150,015 20,964 46
Growth 1.00% 1.50% 0.35% 1.00% 0.90% 191,780 28,146 39
C.A.S.E. 1.00% 1.50% 0.35% 1.00% 0.90% 4,356 642 -
Tactical
Asset
Allocat 1.00% 1.50% 0.35% 1.00% 0.90% 22,282 2,742 125
Equity-
Income 1.00% 1.50% 0.35% 1.00% 0.90% 19,976 3,617 60
Balanced 1.00% 1.50% 0.35% 1.00% 0.90% 13,157 2,118 57
Flexible
Income 0.90% 1.50% 0.35% 1.00% 0.90% 2,509 444 98
Income Plus 0.60% 1.25% 0.35% 1.00% 0.90% 7,845 1,393 56
Tax-Exempt 0.60% 0.65% 0.35% 1.00% 0.60% 2,189 410 -
</TABLE>
(1) The rates for Aggressive Growth, Capital Appreciation, Global, Growth,
C.A.S.E., Tactical Asset Allocation, Equity-Income, and Balanced apply to the
first $750 million in average net assets. The rate for Flexible Income applies
to the first $100 million in average net assets.
(2) The rate for Aggressive Growth, Capital Appreciation, Global, Equity-Income
and Balanced is 2.50% on the first $30 million, 2.00% on the next $70 million
and 1.50% of average net assets thereafter.
(3) Underwriter commissions relate only to front-end sales charges imposed for
Class A and Class T shares and contingent deferred sales charges imposed on
Class B share redemptions.
NOTE 4. Investment Transactions:
The cost of securities purchased and proceeds from securities sold (excluding
non-U.S. Government short-term securities) for the period ended October 31, 1996
were as follows:
<TABLE>
<CAPTION>
Non-U.S. Non-U.S.
Government Government Government Government
purchases sales purchases sales
<S> <C> <C> <C> <C>
Aggressive Growth $ 3,527,390 $ 2,313,788 $ - $ -
Capital Appreciation 2,507,386 2,311,027 995,127 1,095,941
Global 3,442,970 13,975,234 - 450,000
Growth 43,308,764 49,601,528 - -
C.A.S.E. 990,004 495,014 - -
Tactical Asset Allocation 905,780 337,144 - 60,000
Equity-Income 1,027,416 797,354 - -
Balanced 596,917 837,720 502,188 -
Flexible Income 2,322,395 3,954,020 403,894 -
Income Plus 1,000,000 4,801,423 - -
Tax-Exempt 924,500 1,218,320 - -
</TABLE>
NOTE 5. Futures, Forward Currency Contracts And Other Derivative
Transactions:
When a Portfolio enters into a stock index or U.S. Treasury securities
futures contract, the Portfolio is required to pledge to the broker an amount of
U.S. Government securities, equal to a portion of the contract's value, as
"initial margin" on the contract. Subsequently, the Portfolio receives or makes
delivery of cash equal to a specific dollar amount times the difference between
the stock index value (or for Treasury securities futures, the per-contract
value) at the close of the valuation day and the contract's opening strike
price. These payments, called "variation margin", are recorded by the Portfolio
as unrealized gains or losses. To the extent variation margin is unsettled and
is due to or owed by the Portfolio on open futures contracts, a receivable or
payable will exist and is included in other assets in the Statement of Assets
and Liabilities and indicated in the Schedule of Investments. When a futures
contract expires or is closed, the Portfolio may realize a gain or loss.
Realized net loss on futures contracts for the fiscal year ended October 31,
1996 was $21,320 for Flexible Income.
Forward foreign currency contracts are contracts for delayed delivery of
financial interests in which the seller agrees to make delivery at a specified
future date of a specified financial instrument, at a specified price or yield.
Risks arise from changes in the market value of the underlying instruments and
from the possible inability of counterparties to meet the terms of their
contracts.
Forward foreign currency contracts are valued at the forward rate, and are
marked to market daily. The change in market value is recorded by a Portfolio
as an unrealized gain or loss. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
NOTE 6. Information for Federal Income Tax Purposes:
<TABLE>
<CAPTION>
At September 30, 1996:
Realized
net
capital
gain
(loss)
for the
period Net
ended Cost of Unrealized Unrealized unrealized
September securities appreciation depreciation appreciation
30, 1996
<S> <C> <C> <C> <C> <C>
Aggressive
Growth $ 256,269 $ 22,486,630 $ 4,176,107 $ (711,328) $ 3,464,779
Capital
Appreciation (68,919) 20,350,099 3,462,603 (427,385) 3,035,218
Global 2,462,102 125,448,656 24,459,178 (2,262,696) 22,196,482
Growth 17,955,266 829,002,810 342,690,111 (16,979,409) 325,710,702
C.A.S.E. 11,980 3,502,044 167,518 (44,116) 123,402
Tactical
Asset
Allocation 13,874 17,496,238 990,581 (288,877) 701,704
Equity-Income 36,587 13,846,568 1,469,028 (151,160) 1,317,868
Balanced 70,956 9,626,008 778,671 (144,474) 634,197
Flexible Income 56,485 17,927,418 454,442 (88,484) 365,958
Income Plus 226,859 66,270,029 2,943,111 (756,417) 2,186,694
Tax-Exempt (766) 25,184,865 411,968 (94,474) 317,494
</TABLE>
Realized net capital gains available to distribute will be paid to shareholders
in December, 1996. Capital loss carryforwards utilized by Flexible Income
during the fiscal year ended October 31, 1996 were $56,485. Capital loss
carryforwards for Aggressive Growth, Capital Appreciation and Tax-Exempt
aggregated $2,547,037, $68,919 and $766, respectively, and are available through
October 31, 2004. Capital loss carryforwards for Flexible Income aggregated
$2,740,919 and are available to offset future realized net capital gains through
October 31, 1997; of this amount, $480,919 is available through October 31, 1998
and $188,609 is available through October 31, 2002. Flexible Income and
C.A.S.E. will make net capital gain distributions in future years to the extent
that net capital gains are realized in excess of available loss carryforwards.
IDEX Series Fund
Report of Independent Accountants
To the Trustees and Shareholders of
IDEX Series Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the portfolios constituting
IDEX Series Fund (hereafter referred to as the "Fund") at October 31, 1996, the
results of each of their operations, the changes in each of their net assets and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1996 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
November 25, 1996
IDEX SERIES FUND
SUPPLEMENTAL FEDERAL INCOME TAX INFORMATION
September 30, 1996
(unaudited)
<TABLE>
<CAPTION>
The following dividend information for the period ended September 30, 1996, is
being provided according to notice requirements under Internal
Revenue Code section 852; however, refer to Form 1099-DIV information to prepare
income tax returns.
FOR INDIVIDUAL/OTHERS
Record Ordinary Long-term
Date Total Income Capital Gain
<S> <C> <C> <C> <C>
Aggressive Growth
Portfolio
Class A 12/22/95 1.02191 1.02191 -
Class B 12/22/95 1.02191 1.02191 -
Class C 12/22/95 1.02191 1.02191 -
Capital Appreciation
Portfolio
Class A 12/22/95 0.87764 0.87764 -
6/14/96 0.01682 0.01682 -
0.89446 0.89446 -
Class B 12/22/95 0.80747 0.80747 -
6/14/96 0.01682 0.01682 -
0.82429 0.82429 -
Class C 12/22/95 0.81827 0.81827 -
6/14/96 0.01682 0.01682 -
0.83509 0.83509 -
Global Portfolio
Class A 12/22/95 0.62394 0.10588 0.51806
Class B 12/22/95 0.62394 0.10588 0.51806
Class C 12/22/95 0.62394 0.10588 0.51806
Growth Portfolio
Class A 12/22/95 3.13932 1.53124 1.60808
9/17/96 2.03858 - 2.03858
5.17790 1.53124 3.64666
Class B 12/22/95 3.13932 1.53124 1.60808
9/17/96 2.03858 - 2.03858
5.17790 1.53124 3.64666
Class C 12/22/95 3.13932 1.53124 1.60808
9/17/96 2.03858 - 2.03858
5.17790 1.53124 3.64666
Tactical Asset
Allocation Portfolio
Class A 12/22/95 0.02443 0.02443 -
3/14/96 0.01513 0.01513 -
6/14/96 0.01773 0.01773 -
9/13/96 0.01772 0.01772 -
0.07501 0.07501 -
Class B 12/22/95 0.00822 0.00822 -
3/14/96 0.00040 0.00040 -
6/14/96 0.00015 0.00015 -
9/13/96 0.00012 0.00012 -
0.00889 0.00889 -
Class C 12/22/95 0.01071 0.01071 -
3/14/96 0.00267 0.00267 -
6/14/96 0.00286 0.00286 -
9/13/96 0.00282 0.00282 -
0.01906 0.01906 -
Equity-Income
Portfolio
12/22/95 0.19710 0.19710 -
3/14/96 0.03104 0.03104 -
6/14/96 0.04827 0.04827 -
9/13/96 0.04849 0.04849 -
0.32490 0.32490 -
12/22/95 0.17462 0.17462 -
3/14/96 0.01389 0.01389 -
6/14/96 0.02761 0.02761 -
9/13/96 0.02727 0.02727 -
0.24339 0.24339 -
12/22/95 0.17808 0.17808 -
3/14/96 0.01653 0.01653 -
6/14/96 0.03079 0.03079 -
9/13/96 0.03053 0.03053 -
0.25593 0.25593 -
Balanced Portfolio
Class A 12/22/95 0.32965 0.32965 -
3/14/96 0.03903 0.03903 -
6/14/96 0.06965 0.06965 -
9/13/96 0.05570 0.05570 -
0.49403 0.49403 -
Class B 12/22/95 0.30763 0.30763 -
3/14/96 0.02208 0.02208 -
6/14/96 0.04955 0.04955 -
9/13/96 0.03514 0.03514 -
0.41440 0.41440 -
Class C 12/22/95 0.31102 0.31102 -
3/14/96 0.02469 0.02469 -
6/14/96 0.05264 0.05264 -
9/13/96 0.03830 0.03830 -
0.42665 0.42665 -
10/13/95 0.04402 0.04402 -
Flexible Income
Portfolio 11/14/95 0.04567 0.04567 -
Class A 12/22/95 0.06416 0.06416 -
1/12/96 0.02514 0.02514 -
2/14/96 0.04971 0.04971 -
3/14/96 0.04847 0.04847 -
4/12/96 0.04925 0.04925 -
5/14/96 0.04931 0.04931 -
6/14/96 0.05454 0.05454 -
7/12/96 0.04817 0.04817 -
8/14/96 0.05048 0.05048 -
9/13/96 0.05105 0.05105 -
0.57997 0.57997 -
10/13/95 0.03897 0.03897 -
11/14/95 0.04072 0.04072 -
Class B 12/22/95 0.05657 0.05657 -
1/12/96 0.02230 0.02230 -
2/14/96 0.04451 0.04451 -
3/14/96 0.04359 0.04359 -
4/12/96 0.04424 0.04424 -
5/14/96 0.04448 0.04448 -
6/14/96 0.04955 0.04955 -
7/12/96 0.04369 0.04369 -
8/14/96 0.04553 0.04553 -
9/13/96 0.04587 0.04587 -
0.52002 0.52002 -
10/13/95 0.03974 0.03974 -
11/14/95 0.04148 0.04148 -
Class C 12/22/95 0.05774 0.05774 -
1/12/96 0.02273 0.02273 -
2/14/96 0.04531 0.04531 -
3/14/96 0.04434 0.04434 -
4/12/96 0.04501 0.04501 -
5/14/96 0.04522 0.04522 -
6/14/96 0.05032 0.05032 -
7/12/96 0.04438 0.04438 -
8/14/96 0.04629 0.04629 -
9/13/96 0.04667 0.04667 -
0.52923 0.52923 -
10/13/95 0.05587 0.05587 -
Income Plus Portfolio 11/14/95 0.05867 0.05867 -
Class A 12/22/95 0.08643 0.08643 -
1/12/96 0.03219 0.03219 -
2/14/96 0.06441 0.06441 -
3/14/96 0.05457 0.05457 -
4/12/96 0.05749 0.05749 -
5/14/96 0.05881 0.05881 -
6/14/96 0.05740 0.05740 -
7/12/96 0.05948 0.05948 -
8/14/96 0.06137 0.06137 -
9/13/96 0.06357 0.06357 -
0.71026 0.71026 -
10/13/95 0.05017 0.05017 -
11/14/95 0.05311 0.05311 -
Class B 12/22/95 0.07801 0.07801 -
1/12/96 0.02906 0.02906 -
2/14/96 0.05867 0.05867 -
3/14/96 0.04915 0.04915 -
4/12/96 0.05187 0.05187 -
5/14/96 0.05337 0.05337 -
6/14/96 0.05179 0.05179 -
7/12/96 0.05444 0.05444 -
8/14/96 0.05578 0.05578 -
9/13/96 0.05770 0.05770 -
0.64312 0.64312 -
10/13/95 0.05104 0.05104 -
11/14/95 0.05396 0.05396 -
Class C 12/22/95 0.07931 0.07931 -
1/12/96 0.02954 0.02954 -
2/14/96 0.05956 0.05956 -
3/14/96 0.04999 0.04999 -
4/12/96 0.05273 0.05273 -
5/14/96 0.05421 0.05421 -
6/14/96 0.05265 0.05265 -
7/12/96 0.05521 0.05521 -
8/14/96 0.05664 0.05664 -
9/13/96 0.05861 0.05861 -
0.65345 0.65345 -
<CAPTION>
Exempt-
Record Interest Long-term
Date Total Dividends(1) Capital Gain
<S> <C> <C> <C> <C>
10/13/95 0.04797 0.04797 -
Tax-Exempt Portfolio 11/14/95 0.05118 0.05118 -
Class A 12/22/95 0.13110 0.13110 -
1/12/96 0.02432 0.02432 -
2/14/96 0.04998 0.04998 -
3/14/96 0.04819 0.04819 -
4/12/96 0.04742 0.04742 -
5/14/96 0.04566 0.04566 -
6/14/96 0.04639 0.04639 -
7/12/96 0.04524 0.04524 -
8/14/96 0.04699 0.04699 -
9/13/96 0.04673 0.04673 -
0.63117 0.63117 -
10/13/95 0.04168 0.04168 -
11/14/95 0.04506 0.04506 -
Class B 12/22/95 0.12173 0.12173 -
1/12/96 0.02084 0.02084 -
2/14/96 0.04366 0.04366 -
3/14/96 0.04224 0.04224 -
4/12/96 0.04131 0.04131 -
5/14/96 0.03973 0.03973 -
6/14/96 0.04021 0.04021 -
7/12/96 0.03973 0.03973 -
8/14/96 0.04085 0.04085 -
9/13/96 0.04029 0.04029 -
0.55733 0.55733 -
10/13/95 0.04555 0.04555 -
11/14/95 0.04883 0.04883 -
Class C 12/22/95 0.12750 0.12750 -
1/12/96 0.02298 0.02298 -
2/14/96 0.04755 0.04755 -
3/14/96 0.04590 0.04590 -
4/12/96 0.04507 0.04507 -
5/14/96 0.04338 0.04338 -
6/14/96 0.04401 0.04401 -
7/12/96 0.04312 0.04312 -
8/14/96 0.04463 0.04463 -
9/13/96 0.04425 0.04425 -
0.60277 0.60277 -
</TABLE>
(1) Tax-Exempt Portfolio is a municipal bond portfolio, therefore, for tax
purposes, the dividends declared are considered exempt-interest dividends,
exempt from Federal income tax.
IDEX SERIES FUND
SUPPLEMENTAL FEDERAL INCOME TAX INFORMATION (continued)
September 30, 1996
(unaudited)
<TABLE>
<CAPTION>
QUALIFYING DIVIDENDS - FOR CORPORATIONS ONLY
RECORD DATE 10-13-95 11-14-95 12-22-95
<S> <C> <C> <C>
Capital Appreciation
Class A Shares - - 0.03511
Class B Shares - - 0.03230
Class C Shares - - 0.03273
Equity-Income
Class A Shares - - 0.08901
Class B Shares - - 0.07886
Class C Shares - - 0.08042
Balanced
Class A Shares - - 0.06541
Class B Shares - - 0.06104
Class C Shares - - 0.06171
Tactical Asset Allocation
Class A Shares - - 0.00676
Class B Shares - - 0.00228
Class C Shares - - 0.00297
Income Plus
Class A Shares 0.00034 0.00035 0.00052
Class B Shares 0.00030 0.00032 0.00047
Class C Shares 0.00031 0.00032 0.00048
RECORD DATE 1-12-96 2-14-96 3-14-96
Capital Appreciation
Class A Shares - - -
Class B Shares - - -
Class C Shares - - -
Equity-Income
Class A Shares - - 0.01402
Class B Shares - - 0.00627
Class C Shares - - 0.00747
Balanced
Class A Shares - - 0.00774
Class B Shares - - 0.00438
Class C Shares - - 0.00490
Tactical Asset Allocation
Class A Shares - - 0.00419
Class B Shares - - 0.00011
Class C Shares - - 0.00074
Income Plus
Class A Shares 0.00019 0.00039 0.00033
Class B Shares 0.00017 0.00035 0.00030
Class C Shares 0.00018 0.00036 0.00030
RECORD DATE 4-12-96 5-14-96 6-14-96
Capital Appreciation
Class A Shares - - 0.00067
Class B Shares - - 0.00067
Class C Shares - - 0.00067
Equity-Income
Class A Shares - - 0.02180
Class B Shares - - 0.01247
Class C Shares - - 0.01391
Balanced
Class A Shares - - 0.01382
Class B Shares - - 0.00983
Class C Shares - - 0.01044
Tactical Asset Allocation
Class A Shares - - 0.00491
Class B Shares - - 0.00004
Class C Shares - - 0.00079
Income Plus
Class A Shares 0.00035 0.00035 0.00034
Class B Shares 0.00031 0.00032 0.00031
Class C Shares 0.00032 0.00033 0.00032
RECORD DATE 7-12-96 8-14-96 9-13-96
Capital Appreciation
Class A Shares - - -
Class B Shares - - -
Class C Shares - - -
Equity-Income
Class A Shares - - 0.02190
Class B Shares - - 0.01232
Class C Shares - - 0.01379
Balanced
Class A Shares - - 0.01105
Class B Shares - - 0.00697
Class C Shares - - 0.00760
Tactical Asset Allocation
Class A Shares - - 0.00491
Class B Shares - - 0.00003
Class C Shares - - 0.00078
Income Plus
Class A Shares 0.00036 0.00037 0.00038
Class B Shares 0.00033 0.00034 0.00035
Class C Shares 0.00033 0.00034 0.00035
</TABLE>
Corporate Deductions: Under Federal tax law, the amounts reportable as
qualifying dividends are eligible for the dividends received deduction in the
year received as provided by section 243 of the Internal Revenue Code. The tax
status of dividends paid will be reported to recipients of form 1099-DIV
after the close of the applicable calendar year. Shareholders are advised to
consult their tax adviser concerning the tax treatment of dividends and
distributions paid by the Portfolios.
To the Former Shareholders of IDEX Fund and IDEX Fund 3:
IDEX Fund and IDEX Fund 3 held a special meeting of shareholders on September
16, 1996. The matter voted upon at the meeting was to approve the reorganization
of IDEX Fund and IDEX Fund 3 into IDEX Series Growth Portfolio Class T Shares.
The shares voted were as follows:
Affirmative Against Abstain
IDEX Fund 9,237,549 224,982 340,455
IDEX Fund 3 4,870,881 192,454 284,630
Because the proposal was non-routine there were no broker non-votes calculated.
IDEX Series Fund
TRUSTEES
Peter R. Brown Largo, Florida
Chairman of the Board,
Peter Brown Construction Company
Daniel Calabria
S. Pasadena, Florida Retired; former President/CEO,
T. Templeton Funds Management, Inc.
James L. Churchill
Hilton Head, South Carolina Retired; former President of the Avionics
Group of Rockwell International Corporation
Charles C. Harris
Belleair, Florida
Retired; former Senior Vice President,
Western Reserve Life Assurance Co. of Ohio
G. John Hurley
Largo, Florida
President and Chief Executive Officer of the Fund;
President and Chief Executive Officer of InterSecurities, Inc.
John R. Kenney
Largo, Florida
Chairman of the Board of the Fund;
Chairman of the Board of InterSecurities, Inc.
Julian Lerner
Dallas, Texas
Advisor to the Board of Associated Financial Group;
former Investment Consultant and Senior Vice President, AIM Capital Management
William W. Short, Jr.
Largo, Florida
Chairman, Southern Apparel Corporation and S.A.C. Distributors
Jack E. Zimmerman
Dayton, Ohio
Retired; former Director, Regional Marketing, Martin Marietta Corporation
TRANSFER AGENT
Idex Investor Services, Inc. P.O. Box 9015
Clearwater, Florida 34618-9015
OFFICERS
John R. Kenney
Chairman of the Board
G. John Hurley
President and Chief
Executive Officer
Thomas R. Moriarty
Senior Vice President
William H. Geiger
Vice President and Assistant Secretary
Ronald L. Hall
Senior Vice President - Sales & Marketing
Becky A. Ferrell
Vice President, Counsel and Secretary
Christopher G. Roetzer
Assistant Vice President and Principal Accounting Officer
Richard B. Franz II
Treasurer
CORPORATE ADDRESS
201 Highland Avenue Largo, Florida 34640
CUSTOMER SERVICE
(800) 851-9777
Hours: 8 a.m. to 7 p.m. Eastern time
IDEX Assist Line
(800) 421-IDEX (4339)
24-hour automated account information
INVESTMENT ADVISERS
Idex Management, Inc.
201 Highland Avenue Largo, Florida 34640
InterSecurities, Inc.
201 Highland Avenue Largo, Florida 34640
SUB-ADVISERS
AEGON USA Investment Management, Inc.
4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499
C.A.S.E. Management, Inc.
2255 Glades Road, Suite 221-A
Boca Raton, Florida 33431
Dean Investment Associates
2480 Kettering Tower
Dayton, Ohio 45423
Fred Alger Management, Inc.
30 Montgomery Street
Jersey City, New Jersey 07302
Janus Capital Corporation
100 Fillmore Street, Suite 300
Denver, Colorado 80206
Luther King Capital Management Corporation
301 Commerce Street, Suite 1600 Ft. Worth, Texas 76102
PRINCIPAL UNDERWRITER
InterSecurities, Inc.
201 Highland Avenue Largo, Florida 34640
CUSTODIAN
Investors Fiduciary Trust Company
Kansas City, Missouri 64105
Please send all correspondence to the Transfer Agent
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1055 Broadway
Kansas City, Missouri 64105
If you receive duplicate mailings because you have more than one account in the
same Portfolio or in the IDEX Series Fund, at the same household, you may wish
to save your Fund money by consolidating your accounts by address. Please call
IDEX Customer Service at (800) 851-9777.
