<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
In the first quarter of 1999, we saw the Dow Jones Industrial
Average close above 10,000 and the euphoria over internet stocks
continue. This rally was narrowly focused on technology and
technology related issues. However, due to their wide
diversification, most mutual funds didn't participate in the rally
leaving a wide range in fund performance.
The winning streak for large-cap stocks mostly ended in the second
quarter. Large-cap dominated indices like the S&P 500 that have
fast-growing companies with high price-earning multiples suffered
when economic growth pushed interest rates higher. As a result,
industrial stocks led the index for the first time since the third
quarter of 1997. This resurgence in industrials was due in part to
investor's confidence that economies around the world are on the
rebound. For now, it appears that the performance of the market is
more broadly distributed.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[S & P 500 Index Fund Graph]
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 22.49% 27.50% 18.35% 15.90%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
2
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common Stocks $816,820,563
Short term securities 1,375,000
------------
Total investments 818,195,563
Cash 119,086
Broker receivable 4,863,744
Dividends receivable 678,961
------------
Total assets 823,857,354
------------
LIABILITIES:
Payable to Conning Asset
Management Company 161,273
Payable to General American Life
Insurance Company 32,255
Payable to broker 5,200,868
------------
Total liabilities 5,394,396
------------
Total net assets $818,462,958
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 14,441,800
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 56.67
TOTAL AMORTIZED COST OF INVESTMENTS $409,222,570
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $ 4,984,577
Interest 38,004
-----------
Total investment income 5,022,581
-----------
EXPENSES:
Investment management charge 936,461
Administrative charge 187,292
-----------
Total expenses 1,123,753
-----------
Net investment income 3,898,828
-----------
NET REALIZED GAIN:
Net realized gain on investments 23,602,548
-----------
NET REALIZED GAIN 23,602,548
-----------
NET UNREALIZED GAIN:
Net unrealized gain on investments 60,082,038
-----------
NET UNREALIZED GAIN 60,082,038
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $87,583,414
===========
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30 DECEMBER 31
------------ ------------
1999<F*> 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income $ 3,898,828 $ 7,155,143
Net realized gain 23,602,548 34,309,052
Net unrealized gain 60,082,038 108,174,275
------------ ------------
Net increase in net assets from operations 87,583,414 149,638,470
Capital share transactions 30,390,100 49,273,624
------------ ------------
Net increase in net assets 117,973,514 198,912,094
Net assets, beginning of year 700,489,444 501,577,350
------------ ------------
Net assets, end of period $818,462,958 $700,489,444
============ ============
<FN>
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
3
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND<F*>
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
--------- -----------------------------------------------------
1999<F**> 1998 1997 1996 1995
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 50.49 $ 39.40 $ 29.67 $ 24.14 $ 17.64
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.27 0.53 0.52 0.53 0.46
Net realized and unrealized gains on
investments 5.91 10.56 9.21 5.00 6.04
-------- -------- -------- -------- --------
Net increase in asset value per share 6.18 11.09 9.73 5.53 6.50
-------- -------- -------- -------- --------
Net asset value, end of period $ 56.67 $ 50.49 $ 39.40 $ 29.67 $ 24.14
======== ======== ======== ======== ========
Total return <F2> 12.25% 28.15% 32.80% 22.89% 36.85%
Net assets, end of period (in thousands) $818,463 $700,489 $501,577 $340,201 $247,313
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 1.03% 1.21% 1.48% 1.97% 2.19%
Portfolio turnover rate 6.21% 13.14% 12.61% 8.93% 4.75%
<CAPTION>
YEAR ENDED DECEMBER 31
---------------------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 17.44 $ 15.88 $ 14.78 $ 11.35 $ 11.80
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.44 0.41 0.39 0.38 0.38
Net realized and unrealized gain (loss) on
investments (0.24) 1.15 0.71 3.05 (0.83)
-------- -------- -------- -------- --------
Net increase (decrease) in asset value per
share 0.20 1.56 1.10 3.43 (0.45)
-------- -------- -------- -------- --------
Net asset value, end of year $ 17.64 $ 17.44 $ 15.88 $ 14.78 $ 11.35
======== ======== ======== ======== ========
Total return <F2> 1.15% 9.83% 7.45% 30.21% (3.82%)
Net assets, end of year (in thousands) $169,303 $161,761 $123,458 $102,076 $ 72,665
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 2.50% 2.47% 2.67% 2.89% 3.35%
Portfolio turnover rate 7.38% 2.56% 4.38% 3.92% 4.39%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F*> This Fund formerly known as the Equity Index Fund.
<F**> Unaudited
See accompanying notes to the financial statements.
</TABLE>
4
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
Aerospace & Military Technology (1.16%)
<S> <C> <C>
Boeing Co. 71,480 $ 3,158,487
Crane & Co. 4,850 152,469
General Dynamics Corp. 9,200 630,200
B F Goodrich 5,400 229,500
Lockheed Martin Corp. 28,506 1,061,848
Rockwell International Corp. 13,750 835,313
Textron Inc. 10,900 897,201
United Technologies Corp. 34,900 2,501,876
------------
9,466,894
------------
Air Transport (0.43%)
AMR Corp.<F*> 11,100 757,575
Delta Air Lines Inc. 10,200 587,775
FDX Holding Corp.<F*> 21,560 1,169,630
Southwest Airlines 24,225 754,003
US Air Group<F*> 5,300 230,879
------------
3,499,862
------------
Apparel (0.43%)
CVS Corp. 28,300 1,436,225
Jostens Inc. 2,400 50,549
Liz Claiborne Inc. 4,500 164,250
Nike Inc. Class B 20,400 1,291,565
Reebok Intl. Inc.<F*> 4,000 74,500
Russell Corp. 2,400 46,800
Springs Industries 1,300 56,712
VF Corp. 8,700 371,925
------------
3,492,526
------------
Business Machines (4.30%)
Apple Computer Inc.<F*> 11,500 532,588
Compaq Computer Corp. 123,024 2,914,069
Data General Corp.<F*> 3,600 52,423
EMC Corp./Mass<F*> 74,300 4,086,500
Gateway Inc.<F*> 11,300 666,700
Honeywell Inc. 9,200 1,066,050
IBM Corp. 132,380 17,110,115
Milacron Inc. 2,600 48,100
Oracle Corp.<F*> 105,143 3,903,434
Pitney Bowes Inc. 19,500 1,252,875
Unisys Corp.<F*> 19,500 759,272
Xerox Corp. 47,850 2,826,117
------------
35,218,243
------------
Business Services (9.38%)
Adobe Systems Inc. 4,400 361,486
Automatic Data Processing
Inc. 44,800 1,971,200
BMC Software Inc.<F*> 17,100 923,400
Browning-Ferris Industries
Inc. 11,300 485,900
Cabletron Systems<F*> 12,400 161,200
Cendant Corp.<F*> 55,542 1,138,611
Ceridian Corp.<F*> 10,400 339,945
Cisco Systems Inc.<F*> 232,400 14,946,109
Clear Channel
Communications<F*> 24,100 1,661,382
Computer Assoc. Intl. 38,800 2,134,000
Compuware Corp.<F*> 26,600 846,199
Dell Computers<F*> 184,600 6,830,200
Deluxe Corp. 5,600 218,047
Equifax Inc. 10,400 371,145
First Data Corp. 31,300 1,531,728
General Instrument Corp.<F*> 12,500 531,250
HCR Manor Care Inc.<F*> 8,000 193,496
IMS Health Inc. 22,900 715,625
Microsoft Corp.<F*> 371,400 33,495,452
Millipore Corp. 3,200 129,798
National Service Inds. Inc. 2,900 104,400
Novell Inc.<F*> 24,300 643,950
Peoplesoft Inc.<F*> 17,400 300,150
Sun Microsystems Inc.<F*> 57,000 3,925,875
Tellabs<F*> 28,400 1,918,761
Thermo Electron<F*> 11,400 228,707
3Com Corp.<F*> 26,200 699,199
------------
76,807,215
------------
<PAGE>
Chemicals (2.02%)
Air Products & Chemicals Inc. 16,600 668,150
AlliedSignal Inc. 40,000 2,520,000
Dow Chemical Co. 15,937 2,022,007
E I Du Pont De Nemours & Co. 82,700 5,649,402
Eastman Chemical 5,675 293,681
Ecolab, Inc. 9,400 410,075
Great Lakes Chemical 4,200 193,460
Hercules Inc. 7,300 286,978
Mallinckrodt Inc. 5,100 185,512
Monsanto 45,750 1,804,243
Nalco Chemicals 4,700 243,813
Owens Corning 4,000 137,500
PPG Industries Inc. 12,600 744,181
Rohm & Haas Co. 15,371 659,060
Sigma-Aldrich 7,300 251,390
Union Carbide Corp. 9,600 468,000
------------
16,537,452
------------
Commercial Banking (7.78%)
Amsouth Bancorporation 12,750 295,634
BB&T Corp. 22,700 832,795
Bank Of America Corp. 127,345 9,335,917
Bank of New York 55,100 2,021,454
Banc One Corp. 86,513 5,152,887
(continued)
5
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Banking (continued)
Bankboston Corp. 21,500 $ 1,099,187
Chase Manhattan Corp. (new) 62,224 5,390,154
Citigroup Inc. 245,870 11,678,825
Comerica Inc. 11,300 671,638
Fifth Third Banc 19,500 1,297,959
First Union Corp. 70,092 3,294,324
Firstar Corporation 47,800 1,338,400
Huntington Bancshares 15,220 532,700
Keycorp 32,400 1,040,850
Mellon Bank Corp. 37,700 1,371,338
Mercantile Bancorporation
Inc. 11,400 651,225
J P Morgan & Co. Inc. 12,900 1,812,450
National City Corp. 22,800 1,493,400
Northern Trust Corp. 8,100 785,700
PNC Financial Corp. 22,000 1,267,750
Regions Financial Corp. 16,200 622,679
Southtrust Corp. 12,100 464,338
Summit Bancorporation 12,400 518,469
Suntrust Banks Inc. 23,300 1,617,882
Synovus Financial Corp. 19,600 389,550
US Bancorp 52,619 1,789,046
Union Planters Corp. 10,300 460,276
Wachovia Corp. 14,700 1,257,761
Wells Fargo & Co. 120,630 5,156,933
------------
63,641,521
------------
Construction (1.09%)
Case Corp. 5,400 259,875
Centex Corp. 4,300 161,517
Fluor Corp. 5,500 222,750
Home Depot Inc. 108,300 6,978,527
Masco Corp. 24,400 704,550
Pulte Home Corp. 3,100 71,492
Stanley Works 6,400 205,997
Vulcan Materials Co. 6,600 318,450
------------
8,923,158
------------
Consumer Durables (0.17%)
Black & Decker Corp. 6,300 397,687
Maytag Corp. 6,400 445,997
Snap-On Inc. 4,700 170,079
Whirlpool Corp. 5,500 407,000
------------
1,420,763
------------
Containers (0.15%)
Crown Cork & Seal 8,800 250,800
Newell Rubbermaid Inc. 20,421 949,577
------------
1,200,377
------------
Domestic Oil (0.75%)
Amerada Hess Corp. 6,600 392,700
Apache 8,100 315,900
Ashland Inc. 5,300 212,662
Arco 23,375 1,953,262
Kerr-McGee Corp. 6,267 314,522
Phillips Petroleum Co. 18,300 920,710
Rowan Companies Inc.<F*> 6,000 110,622
Sunoco Inc. 6,500 196,215
USX-Marathon Group 22,359 728,054
Union Pacific Resources Group 18,174 296,454
Unocal Corp. 17,500 693,437
------------
6,134,538
------------
<PAGE>
Drugs & Medicines (8.51%)
Abbott Laboratories 111,100 5,055,050
Allergan Inc. 4,800 531,600
Alza Corp.<F*> 7,300 371,388
American Home Products Corp. 95,800 5,508,500
Bard C R Inc. 3,700 176,904
Bausch & Lomb Inc. 4,100 313,650
Baxter International 21,100 1,279,188
Becton Dickinson & Co. 18,000 540,000
Boston Scientific Corp.<F*> 28,600 1,256,598
Columbia HCA/Healthcare 41,086 937,254
Guidant Corp. 21,900 1,126,470
Healthsouth Corp.<F*> 30,000 448,110
Humana Inc.<F*> 12,100 156,538
Johnson & Johnson 98,400 9,643,200
Eli Lilly & Co. 80,700 5,780,138
Merck & Co. Inc. 171,850 12,716,900
Pharmacia-UpJohn Inc. 36,705 2,085,284
Pfizer Inc. 94,700 10,393,325
St. Jude Medical<F*> 6,100 217,312
Schering-Plough Corp. 107,600 5,702,800
Tenet Healthcare<F*> 22,400 415,788
Warner-Lambert Co. 62,600 4,342,875
Watson Pharmaceuticals
Inc.<F*> 6,900 241,928
Wellpoint Health Networks<F*> 4,900 415,887
------------
69,656,687
------------
Electronics (6.09%)
Advanced Micro Devices
Inc.<F*> 10,600 191,457
Andrew Corp.<F*> 5,900 111,728
Applied Materials Inc.<F*> 27,000 1,994,625
Emerson Electric Co. 31,500 1,980,562
Harris Corp. 5,800 227,285
Hewlett-Packard Co. 74,500 7,487,250
Intel Corp. 241,400 14,363,300
KLA-Tencor Corp.<F*> 6,400 415,200
(continued)
6
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Electronics (continued)
LSI Logic Corp.<F*> 10,400 $ 479,700
Medtronic Inc. 42,300 3,294,112
Micron Technology Inc.<F*> 18,100 729,647
Motorola Inc. 43,700 4,140,575
Network Appliance Inc.<F*> 5,100 284,962
Nortel Networks Corporation 49,020 4,255,524
PE Corp - PE Biosystems Group 3,700 424,575
Parametric Technology
Corp.<F*> 19,500 270,563
Raytheon Co. 24,300 1,710,113
Seagate Technology Inc.<F*> 16,100 412,563
Silicon Graphics<F*> 13,600 222,700
Solectron Corp.<F*> 18,300 1,220,372
Texas Instruments Inc. 28,400 4,118,000
Thomas & Betts Corp. 4,100 193,725
Williams Companies Inc. 31,300 1,332,191
------------
49,860,729
------------
Energy & Utilities (1.39%)
American Electric Power
Co. Inc. 13,900 522,112
Burlington Resources 12,792 553,254
CMS Energy Corp. 8,500 355,937
Central & South West Corp. 15,300 357,637
Coastal Corp. 15,400 616,000
Columbia Energy Group 5,950 372,988
Consolidated Edison Inc. 16,400 742,100
Consolidated Natural Gas Co. 6,971 423,488
Constellation Energy Group
Inc. 10,800 319,950
Dominion Resources Inc. 13,900 602,037
Edison International 25,100 671,425
Enron Corp. 25,600 2,092,800
Entergy Corp. 17,800 556,250
FPL Group Inc. 13,000 710,125
New Century Energies Inc. 8,300 322,140
Niagara Mohawk Holdings
Inc.<F*> 13,500 216,837
Northern States Power
Co. (Minn) 11,100 268,476
Reliant Energy Inc. 21,418 591,672
Sonat Inc. 8,000 265,000
Texas Utilities Co. 20,305 837,581
------------
11,397,809
------------
Energy Raw Materials (0.69%)
Baker Hughes Inc. 23,710 794,285
Halliburton Co. 31,900 1,443,475
McDermott Intl. 4,200 118,650
Nacco Industries Inc. 600 44,100
Occidental Petroleum Corp. 25,100 530,238
Oneok 2,300 73,025
Peoples Energy Corp. 2,600 97,986
Schlumberger 39,600 2,522,005
------------
5,623,764
------------
<PAGE>
Finance (Non-Banking) (3.13%)
Associates First Capital
Corp. 52,706 2,335,508
Bear Stearns Companies Inc. 8,400 392,700
H & R Block Inc. 7,000 350,000
Capital One Financial Corp. 14,300 796,324
Chubb Corp. 11,700 813,150
Cincinnati Financial Corp. 11,900 446,988
Countrywide Credit 8,200 350,550
Fleet Financial Group Inc. 41,284 1,831,977
Franklin Resources Inc. 18,200 739,375
Golden West Financial 4,100 401,800
Lehman Brothers Holding Inc. 8,600 535,350
MBIA Inc. 7,200 466,200
MBNA Corp. 58,025 1,777,016
Morgan Stanley, Dean Witter
& Co. 42,294 4,335,135
Paine Webber Group Inc. 10,600 495,550
Paychex Inc. 17,800 567,375
Progressive Corp. 5,300 768,500
Providian Financial Corp. 10,350 967,725
Republic New York Corp. 7,600 518,221
SLM Holding Corp. 11,740 537,833
Safeco Corp. 9,900 436,837
Schwab (Charles) Corp. 29,575 3,249,553
State Street Corp. 11,700 998,888
Washington Mutual Inc. 43,069 1,523,566
------------
25,636,121
------------
Food & Agriculture (3.60%)
Archer-Daniels-Midland Co. 42,524 656,443
Bestfoods 20,200 999,900
Campbell Soup Co. 31,600 1,465,450
Coca-Cola Company 179,600 11,225,000
Coca-Cola Enterprises 30,700 913,325
ConAgra Inc. 35,300 939,862
Adolph Coors 2,700 133,650
Darden Restaurants 9,600 209,395
General Mills Inc. 11,100 892,163
H J Heinz Co. 26,050 1,305,756
Hershey Foods Corp. 10,100 599,688
Kellogg Co. 29,300 966,900
Pepsico Inc. 107,900 4,174,327
Pioneer Hi-Bred International 17,300 673,610
Quaker Oats Co. 9,800 650,475
(continued)
7
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Food & Agriculture (continued)
Ralston Purina Co. 23,500 $ 715,270
Sara Lee Corp. 65,300 1,481,461
Sysco Corp. 23,900 712,507
Wm. Wrigley Jr. Co. 8,400 756,000
------------
29,471,182
------------
Gold (0.12%)
Barrick Gold Corp. 28,200 546,375
Battle Mountain Gold Co. 16,600 40,454
Homestake Mining Co. 18,800 153,916
Placer Dome Inc. 23,500 277,582
------------
1,018,327
------------
Government & State Agency
(0.98%)
Federal Home Loan
Mortgage Corp. 50,300 2,917,400
Federal National Mortgage
Assoc. 75,200 5,141,800
------------
8,059,200
------------
Industrial Miscellaneous (3.64%)
America Online Inc.<F*> 79,700 8,806,850
American Greetings 4,800 144,600
Amgen<F*> 37,100 2,258,463
Anadarko Petroleum Co. 8,700 320,264
Armstrong World Industries
Inc. 2,900 167,655
Asarco Inc. 2,800 52,674
Autodesk Inc. 4,200 124,160
Avery Dennison Corp. 8,200 495,075
Ball Corp. 2,200 92,950
Biomet Inc. 8,100 321,975
Briggs & Stratton 1,700 98,175
Circuit City Stores Inc. 7,300 678,900
Computer Sciences<F*> 11,500 795,650
Cooper Tire & Rubber 5,400 127,575
Corning Inc. 17,700 1,241,213
Cummins Engine 3,100 177,088
Danaher Corp. 9,800 569,625
Dun & Bradstreet Corp. (new) 11,875 420,814
EG & G 3,200 114,000
Electronic Data Systems Corp. 35,600 2,013,607
Engelhard Corp. 9,050 204,756
Fleetwood Enterprises 2,500 66,093
Foster Wheeler 2,900 40,963
Freeport McMoran 11,800 211,656
W.R. Grace & Co.<F*> 5,000 91,875
Harrahs Entertainment,
Inc.<F*> 9,200 202,400
Helmerich & Payne 3,500 83,342
IKON Office Solutions Inc. 10,700 160,500
Laidlaw Inc. 23,800 175,525
Loews Corp. 7,900 625,087
Lowes Companies Inc. 26,900 1,524,880
Mattel Inc. 30,087 795,410
McKesson HBOC Inc. 20,014 642,950
Mead Corp. 7,300 304,775
National Semiconductor Corp. 12,100 306,275
Northrop Corp. 5,000 331,560
Praxair 11,400 557,882
Rite Aid Corp. 18,700 460,488
Ryder System Inc. 5,100 132,600
Sealed Air Corporation<F*> 6,033 391,391
Service Corp. International 19,600 377,300
Shared Medical Systems Corp. 1,900 123,975
Sherwin-Williams 12,300 341,325
Tektronix Inc. 3,400 102,636
Timken Co. 4,400 85,800
Waste Management Inc. 44,135 2,372,256
Fruit of The Loom<F*> 5,200 50,700
------------
29,785,713
------------
<PAGE>
Insurance (2.69%)
AFLAC Inc. 19,300 923,988
Aetna Inc. 10,222 914,225
Allstate Insurance 58,396 2,094,957
American International
Group Inc. 90,691 10,616,470
Aon Corp. 18,575 766,218
Cigna Corp. 14,800 1,317,200
Jefferson Pilot Corp. 7,650 506,331
Kaufman & Broad Homebuilders 3,400 84,574
Lincoln National Corp. 14,500 758,524
MGIC Investment Corp. 7,900 384,138
Marsh & McLennan Cos. Inc. 19,050 1,438,275
St. Paul Companies Inc. 16,400 521,717
Torchmark Corp. 9,600 327,600
United Healthcare 12,500 782,812
Unumprovident Corp. 10,100 552,975
------------
21,990,004
------------
International Oil (4.40%)
Chevron Corp. 47,500 4,521,383
Exxon Corp. 176,800 13,635,700
Mobil Corp. 57,700 5,712,300
Royal Dutch Petroleum Co. 156,200 9,411,050
Tenneco Inc. 12,300 293,662
Texaco Inc. 38,800 2,425,000
------------
35,999,095
------------
(continued)
8
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Liquor (0.53%)
Anheuser-Busch Companies Inc. 34,450 $ 2,443,780
Brown Forman Corp. 'B' 5,000 325,935
Seagram Co. Ltd. 31,000 1,561,625
------------
4,331,340
------------
Media (2.46%)
CBS Corp. 51,500 2,237,006
Comcast Corp. 53,600 2,060,223
R R Donnelley & Sons Co. 9,500 352,089
Dow Jones & Co. 6,600 350,209
Gannett Co. Inc. 20,200 1,441,775
Harcourt General Inc. 5,200 268,122
Interpublic Group Co. 10,200 883,575
King World Productions<F*> 5,100 177,541
Knight Ridder Inc. 5,700 313,140
McGraw-Hill Inc. 14,300 771,299
Meredith Corp. 3,700 128,113
New York Times Co. 12,800 471,194
Omnicom Group 13,000 1,040,000
Time Warner Inc. 87,360 6,420,960
Times Mirror Co. 5,200 308,100
Tribune Co. 8,550 744,919
Viacom Class B<F*> 50,000 2,200,000
------------
20,168,265
------------
Miscellaneous & Conglomerates
(0.54%)
Hartford Financial Services
Group 16,400 956,316
ITT Industries Inc. 6,300 240,188
Marriott International-
Class A 18,050 674,619
Minnesota Mining & Mfg. 29,150 2,534,214
------------
4,405,337
------------
Miscellaneous Finance (1.24%)
American Express Co. 33,600 4,372,200
American General Corp. 18,226 1,373,785
Household International Inc. 34,653 1,641,686
Merrill Lynch & Co. Inc. 26,600 2,126,324
Transamerica Corp. 9,000 675,000
------------
10,188,995
------------
Motor Vehicles (1.23%)
Dana Corp. 11,987 552,145
Eaton Corp. 5,200 478,400
Ford Motor Co. 88,600 5,000,318
General Motors 46,950 3,098,700
Genuine Parts Co. 12,925 452,375
TRW Inc. 8,700 477,413
------------
10,059,351
------------
Non-Durables & Entertainment
(0.29%)
Brunswick Corp. 6,600 183,975
Costco Companies Inc.<F*> 15,903 1,273,226
Hasbro Inc. 14,150 395,309
Mirage Resorts Inc.<F*> 14,300 239,525
Wendy's International Inc. 8,875 251,269
------------
2,343,304
------------
Non-Ferrous Metals (0.40%)
Alcan Aluminum Limited 16,325 521,372
Alcoa Inc. 26,800 1,658,250
Cyprus Amax Minerals Co. 6,450 97,956
Inco Ltd. 13,800 248,400
Newmont Mining Corp. 12,077 240,030
Phelps Dodge Corp. 4,200 260,135
Reynolds Metals Co. 4,700 277,300
------------
3,303,443
------------
<PAGE>
Optical Photographic Equipment
(0.20%)
Eastman Kodak Co. 23,300 1,578,575
Polaroid Corp. 3,145 86,881
------------
1,665,456
------------
Paper & Forest Products (0.94%)
Bemis Co. Inc. 3,800 151,050
Boise Cascade Corp. 4,066 174,330
Champion International 6,900 330,338
Fort James Corp. 16,000 606,000
Georgia-Pacific Corp. 12,400 587,450
International Paper Co. 29,702 1,499,950
Kimberly-Clark Corp. 38,572 2,198,604
Louisiana Pacific Corp. 7,700 182,875
Potlatch Corp. 2,100 92,268
Temple Inland Inc. 4,000 273,000
Westvaco Corp. 7,225 209,525
Weyerhaeuser Co. 14,550 1,000,313
Willamette Industries 8,100 373,102
------------
7,678,805
------------
Producer Goods (5.11%)
Caterpillar Inc. 25,800 1,548,000
Conseco Inc. 23,423 712,926
Cooper Industries Inc. 6,800 353,600
Deere & Co. 16,800 665,700
Delphi Automotive Systems 40,883 758,870
Dover Corp. 15,400 539,000
FMC Corp.<F*> 2,300 157,118
General Electric Corp. 238,100 26,905,300
W W Grainger Inc. 6,806 366,244
Illinois Tool Works Inc. 18,100 1,484,200
Ingersoll-Rand Co. 12,000 775,500
(continued)
9
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Producer Goods (continued)
Johnson Controls Inc. 6,200 $ 429,734
Navistar Intl. Corp.<F*> 4,800 240,000
Owens-Illinois Inc.<F*> 11,300 369,363
Pall Corp. 9,000 199,683
Parker Hannifin Corp. 7,825 357,994
Raychem Corp. 5,600 207,200
Tyco International Ltd. 60,381 5,721,191
------------
41,791,623
------------
Railroads & Shipping (0.51%)
Burlington Northern Santa Fe 34,024 1,054,744
CSX Corp. 15,700 711,398
Kansas City Southern Inds. 8,000 510,496
Norfolk Southern Corp. 27,450 826,931
Union Pacific Corp. 17,900 1,043,785
------------
4,147,354
------------
Retail (5.75%)
Albertsons Inc. 30,400 1,567,485
Autozone Inc.<F*> 10,800 325,350
Best Buy Inc.<F*> 13,400 904,500
Cardinal Health Inc. 19,700 1,263,263
Consolidated Stores Corp.<F*> 7,925 213,975
Dayton-Hudson Corp. 32,100 2,086,500
Dillard's Inc. 7,700 270,462
Dollar General 16,018 464,522
Federated Department
Stores<F*> 15,100 799,349
Gap Inc. 62,187 3,132,695
Great Atlantic & Pacific
Tea Co. 2,700 91,292
K Mart Corp.<F*> 35,800 588,445
Kohl's Corp. (Wisconsin)<F*> 11,800 910,807
Kroger Co.<F*> 59,800 1,670,633
Limited Inc. 15,400 698,775
Longs Drug Store 2,800 96,774
May Department Stores Co. 24,176 988,194
McDonald's Corp. 99,300 4,102,282
Nordstrom Inc. 10,300 345,050
Office Depot Inc.<F*> 27,200 600,085
J C Penney Co. Inc. 19,100 927,534
Pep Boys 3,800 82,175
Safeway Inc.<F*> 35,900 1,777,050
Sears Roebuck & Co. 27,600 1,229,911
Staples Inc.<F*> 33,600 1,039,483
Supervalu Inc. 8,600 220,908
TJX Cos. Inc. 23,300 776,170
Tandy Corp. 14,000 684,250
Toys 'R' Us<F*> 17,912 370,546
Tricon Global Restaurants<F*> 11,160 604,035
Tupperware Inc. 4,100 104,550
Wal-Mart Stores Inc. 323,800 15,623,350
Walgreen Co. 72,500 2,129,688
Winn-Dixie Stores Inc. 10,700 395,225
------------
47,085,313
------------
Soaps & Cosmetics (3.61%)
Alberto Culver Co. 'B' 4,000 106,500
Avon Products Inc. 19,000 1,054,500
Bristol-Myers Squibb Co. 144,760 10,196,460
Clorox Co. 8,600 918,583
Colgate-Palmolive Co. 21,200 2,093,500
Gillette Co. 80,300 3,292,300
International Flavors
& Fragrances 7,700 341,688
Procter & Gamble Co. 97,200 8,675,100
Unilever NV 41,371 2,885,627
------------
29,564,258
------------
Steel (0.12%)
Allegheny Teledyne Inc. 13,900 314,488
Bethlehem Steel Corp.<F*> 9,400 72,258
Nucor Corp. 6,300 298,853
USX US Steel 6,371 172,017
Worthington Industries, Inc. 6,600 108,484
------------
966,100
------------
<PAGE>
Telephone (10.68%)
A T & T Corp. 231,566 12,924,162
Alltel 20,400 1,458,600
Ameritech Corp. 80,592 5,923,512
Bell Atlantic Corp. 113,340 7,409,603
Bellsouth Corp. 138,088 6,472,875
Century Tel Inc. 10,100 401,475
Frontier Corp. 12,500 737,500
GTE Corp. 71,400 5,408,550
Lucent Technologies 220,029 14,838,096
MCI Worldcom Inc.<F*> 135,746 11,682,572
Mediaone Inc.<F*> 43,864 3,262,385
Nextel Communications
Inc.-A<F*> 21,400 1,074,002
SBC Communications Inc. 143,162 8,303,396
Scientific Atlanta 5,400 194,400
Sprint Corp. 63,600 3,358,843
Sprint PCS Group<F*> 31,850 1,819,431
US West Inc. 36,507 2,144,786
------------
87,414,188
------------
Tires Rubber Goods (0.08%)
Goodyear Tire & Rubber Co. 11,272 662,929
------------
(continued)
10
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Tobacco (1.03%)
Fortune Brands Inc. 12,100 $ 500,638
Nabisco Group Holdings 23,500 459,714
Philip Morris Companies Inc. 175,650 7,058,847
UST Inc. 12,700 371,475
------------
8,390,674
------------
Travel & Recreation (0.86%)
Carnival Cruise Lines
Class A 44,400 2,153,400
Walt Disney Productions 150,000 4,621,800
Hilton Hotels Corp. 18,600 263,878
------------
7,039,078
------------
Trucking & Freight (0.04%)
Eastern Enterprises 1,600 63,600
Paccar Inc. 5,700 304,238
------------
367,838
------------
Utilities, Electrical & Gas
(1.28%)
AES Corp.<F*> 13,800 802,125
Ameren Corp. 9,900 379,913
Carolina Power & Light Co. 10,900 466,650
Cinergy Corp. 11,454 366,528
DTE Energy Co. 10,500 420,000
Duke Energy Corp. 26,341 1,432,292
Firstenergy Corp. 17,000 527,000
Florida Progress Corp. 7,000 289,183
GPU Inc. 9,100 383,902
Nicor Inc. 3,400 129,411
Peco Energy Co. 13,900 582,063
P G & E Corp. 27,700 900,250
P P & L Resources Inc. 11,400 350,550
Pacificorp 21,500 395,063
Public Service Enterprise
Group 15,850 647,869
Sempra Energy 17,322 391,910
Southern Co. 50,400 1,335,600
Unicom Corp. 15,700 605,423
------------
10,405,732
------------
TOTAL COMMON STOCK (99.80%)
(COST $407,847,570) 816,820,563
------------
<CAPTION>
- ---------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.17%)
Frigate Funding,
5.85%, due 7/1/1999 $1,375,000 $ 1,375,000
------------
TOTAL SHORT TERM
SECURITIES (0.17%)
(AMORTIZED COST $1,375,000) 1,375,000
------------
TOTAL INVESTMENTS (99.97%)
(AMORTIZED COST
$409,222,570) 818,195,563
Other net assets (0.03%) 267,395
------------
TOTAL NET ASSETS (100.00%) $818,462,958
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
11
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
The General American Capital Company Money Market Fund produced a
net return of 2.41 percent in the first six months of the year. Net
assets for the fund ending 6/30/99 were $222.7 million, slightly
lower than the net assets reported on
12/31/98 of $235.0 million.
This fund received several awards earlier in the year from Lipper,
Inc., a nationally recognized analytical firm. The fund was the
number one performing variable annuity fund in 1998 and was ranked
number one for the past ten years on a cumulative basis in net
returns.
While the Federal Reserve maintained a neutral stance and decided
to leave interest rates unchanged at its meeting on March 30, they
adopted a tightening bias at its meeting held May 18. As was widely
expected, the Federal Reserve raised interest rates by 25 basis
points to 5.00% on June 30. While this action did not come as a
surprise, the shift to a neutral stance did surprise the market
somewhat. We continue to anticipate one additional move this
year--either at the August or the October FOMC meeting.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Money Market Fund Graph]
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 5.21% 5.54% 5.53% 5.95%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
12
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Short term securities $222,172,784
------------
Total investments 222,172,784
Cash 5,605
Interest receivable 510,205
------------
Total assets 222,688,594
------------
LIABILITIES:
Payable to Conning Asset Management
Company 23,023
Payable to General American Life
Insurance Company 14,735
------------
Total liabilities 37,758
------------
Total net assets $222,650,836
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 11,293,339
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 19.72
TOTAL AMORTIZED COST OF INVESTMENTS $222,220,162
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Interest $6,112,353
----------
Total investment income 6,112,353
----------
EXPENSES:
Investment management charge 152,410
Administrative charge 97,542
----------
Total expenses 249,952
----------
Net investment income 5,862,401
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $5,862,401
==========
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- ------------
1999<F*> 1998
------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 5,862,401 $ 11,298,523
------------ ------------
Net increase in net assets from operations 5,862,401 11,298,523
Capital share transactions (18,257,394) 49,176,804
------------ ------------
Net increase/decrease in net assets (12,394,993) 60,475,327
Net assets, beginning of year 235,045,829 174,570,502
------------ ------------
Net assets, end of period $222,650,836 $235,045,829
============ ============
<FN>
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
13
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
- --------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- ----------------------------------------------------
1999<F*> 1998 1997 1996 1995
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 19.25 $ 18.23 $ 17.24 $ 16.34 $ 15.42
Income from operations:
Net investment income 0.47 1.02 0.99 0.90 0.92
-------- -------- -------- -------- -------
Net asset value, end of period $ 19.72 $ 19.25 $ 18.23 $ 17.24 $ 16.34
======== ======== ======== ======== =======
Total return <F2> 2.41% 5.62% 5.71% 5.51% 5.96%
Net assets, end of period (in thousands) $222,651 $235,046 $174,571 $101,426 $70,574
Ratio of expenses to average net assets <F3> 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income to average
net assets <F3> 4.77% 5.45% 5.60% 5.37% 5.78%
Portfolio turnover rate <F4> <F4> <F4> <F4> <F4>
<CAPTION>
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 14.80 $ 14.36 $ 13.85 $ 13.04 $ 12.03
Income from operations:
Net investment income 0.62 0.44 0.51 0.81 1.01
-------- -------- -------- -------- -------
Net asset value, end of year $ 15.42 $ 14.80 $ 14.36 $ 13.85 $ 13.04
======== ======== ======== ======== =======
Total return <F2> 4.21% 3.07% 3.71% 6.19% 8.43%
Net assets, end of year (in thousands) $ 93,339 $ 84,430 $ 84,880 $ 84,090 $85,901
Ratio of expenses to average net assets <F3> 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income to average
net assets <F3> 4.17% 3.06% 3.68% 6.10% 8.17%
Portfolio turnover rate <F4> <F4> <F4> <F4> <F4>
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> A portfolio turnover rate is not calculated for securities on which the
maturity or expiration dates at the time of acquisition were one year or less.
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
14
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER
Asset Backed (14.10%)
Certain Funding $ 4,475,000 4.96 08/20/99 $ 4,442,474
Grand Funding<F*> 390,000 5.03 07/29/99 388,483
Grand Funding<F*> 5,000,000 5.17 09/15/99 4,943,300
MPF Limited<F*> 4,000,000 4.92 07/02/99 3,999,441
MPF Limited<F*> 2,618,000 4.93 07/02/99 2,617,634
MPF Limited<F*> 1,200,000 4.90 07/14/99 1,197,886
MPF Limited<F*> 2,975,000 5.20 08/26/99 2,951,243
Pegasus Three Ltd<F*> 4,400,000 4.96 08/19/99 4,369,548
Pegasus Three Ltd.<F*> 2,200,000 5.02 07/14/99 2,196,028
Pegasus Three Ltd.<F*> 1,300,000 4.97 08/18/99 1,291,188
Pegasus Two Ltd.<F*> 3,000,000 5.04 08/03/99 2,986,250
------------
31,383,475
------------
Banking (11.39%)
Banca CRT Financial Corp. 1,000,000 4.91 07/06/99 999,322
Banca CRT Financial Corp. 5,375,000 4.88 07/12/99 5,366,986
Banca CRT Financial Corp. 1,000,000 4.91 07/15/99 998,103
Bavaria Global<F*> 3,150,000 4.93 07/06/99 3,147,865
Bavaria Global<F*> 3,800,000 4.89 07/19/99 3,790,709
Bavaria Global<F*> 2,300,000 5.20 09/22/99 2,271,427
Moat Funding<F*> 5,000,000 4.94 07/02/99 4,999,301
Moat Funding<F*> 1,000,000 5.26 07/13/99 998,250
Moat Funding<F*> 833,000 5.27 07/23/99 830,328
Moat Funding<F*> 2,000,000 5.53 10/20/99 1,966,586
------------
25,368,877
------------
Bond Insurance (4.43%)
Cooperative Association of Tractor Dealers "A" 525,000 4.91 07/22/99 523,503
Cooperative Association of Tractor Dealers "A" 215,000 5.32 07/30/99 214,082
Cooperative Association of Tractor Dealers "B" 900,000 5.51 07/07/99 899,175
Cooperative Association of Tractor Dealers "B" 1,000,000 4.89 07/08/99 999,052
Cooperative Association of Tractor Dealers "B" 1,000,000 4.89 07/12/99 998,509
Cooperative Association of Tractor Dealers "B" 3,000,000 4.95 09/03/99 2,971,494
Cooperative Association of Tractor Dealers "B" 1,500,000 5.16 09/03/99 1,485,747
Cooperative Association of Tractor Dealers "B" 1,800,000 5.22 09/20/99 1,778,196
------------
9,869,758
------------
Business Credit Institutional (4.90%)
Fairway Finance<F*> 3,137,000 4.97 07/02/99 3,136,569
Fairway Finance<F*> 1,500,000 5.19 09/16/99 1,482,759
Fairway Finance<F*> 4,700,000 5.18 09/16/99 4,645,978
Fairway Finance<F*> 1,665,000 4.97 09/24/99 1,643,798
------------
10,909,104
------------
Finance (6.67%)
Duff & Phelps Utility Income 128,000 5.40 10/19/99 125,881
Duff & Phelps Utility Income 139,000 5.37 11/16/99 136,104
Hitachi Credit America 5,000,000 4.96 07/28/99 4,981,627
Hitachi Credit America 1,000,000 5.19 08/16/99 993,419
Hitachi Credit America 3,000,000 5.26 09/15/99 2,965,980
<CAPTION>
(continued)
15
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Finance (continued)
Hitachi Credit America 'A' $ 2,000,000 5.21 09/13/99 $ 1,977,936
Royal Resource Funding<F*> 3,675,000 6.00 07/01/99 3,675,000
------------
14,855,947
------------
Insurance (1.21%)
Metlife Funding 2,700,000 6.00 07/01/99 2,700,000
------------
Miscellaneous Business Credit (19.89%)
Barton Capital Corporation<F*> 1,070,000 4.98 07/12/99 1,068,382
Barton Capital Corporation<F*> 403,000 5.13 07/28/99 401,459
Barton Capital Corporation<F*> 4,000,000 5.00 11/30/99 3,908,032
Barton Capital Corporation<F*> 5,000,000 5.03 11/30/99 4,885,039
Compass Securitization<F*> 6,812,000 4.92 07/06/99 6,807,374
Eagle Funding Capital Corp.<F*> 4,145,000 5.09 07/20/99 4,133,909
Eagle Funding Capital Corp.<F*> 1,337,000 4.95 08/09/99 1,329,785
Eagle Funding Capital Corp.<F*> 1,859,000 5.07 08/27/99 1,843,295
Eagle Funding Capital Corp.<F*> 1,626,000 4.93 08/31/99 1,611,290
Eagle Funding Capital Corp.<F*> 1,800,000 4.95 08/31/99 1,783,715
Lexington Parker Capital<F*> 1,000,000 4.95 07/07/99 999,178
Lexington Parker Capital<F*> 5,900,000 5.11 08/18/99 5,860,116
Lexington Parker Capital<F*> 2,525,000 5.19 08/19/99 2,507,300
Thames Asset Global Securitization<F*> 2,125,000 4.90 07/13/99 2,121,543
Thames Asset Global Securitization<F*> 1,490,000 5.11 07/21/99 1,485,787
Thames Asset Global Securitization<F*> 3,134,000 5.33 08/11/99 3,115,083
Tulip Funding<F*> 415,000 5.13 07/28/99 413,413
------------
44,274,700
------------
Miscellaneous Personal Credit (2.17%)
Old Line Funding<F*> 1,214,000 4.94 07/01/99 1,214,000
Park Avenue Receivables<F*> 1,718,000 4.96 07/08/99 1,716,350
Park Avenue Receivables<F*> 1,925,000 5.35 09/01/99 1,907,292
------------
4,837,642
------------
Mortgage Banking (4.93%)
Cooper River Funding 10,000,000 5.12 07/22/99 9,970,308
Cooper River Funding 1,000,000 5.18 07/28/99 996,138
------------
10,966,446
------------
Personal Credit Institutional (13.50%)
Check Point Charlie<F*> 5,000,000 4.93 07/06/99 4,996,611
Check Point Charlie<F*> 2,800,000 4.90 07/14/99 2,795,067
Check Point Charlie<F*> 2,025,000 4.90 07/14/99 2,021,432
Check Point Charlie<F*> 3,000,000 5.53 07/15/99 2,994,310
Frigate Funding<F*> 11,500,000 4.92 07/26/99 11,460,785
World Omni<F*> 5,779,000 4.97 07/01/99 5,779,000
------------
30,047,205
------------
<CAPTION>
(continued)
16
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (2.24%)
Southern Company $ 5,000,000 5.46 07/09/99 $ 4,993,944
------------
TOTAL COMMERCIAL PAPER (85.43%) (AMORTIZED COST
$190,257,352) 190,207,098
------------
EXTENDABLE COMMERCIAL RATE NOTES
Hasbro Inc., Extendable Commercial Rate Note 10,000,000 5.04 07/27/99 9,964,611
------------
TOTAL EXTENDABLE COMMERCIAL RATE NOTES (4.48%)
(AMORTIZED COST $9,963,889) 9,964,611
------------
FLOATING RATE NOTES
Goldman Sachs Floating Rate Note 5,000,000 07/26/99 5,000,000
Federal Home Loan Bank 5,000,000 07/01/99 5,001,075
------------
TOTAL FLOATING RATE NOTES (4.49%) (AMORTIZED COST
$9,998,921) 10,001,075
------------
TIME DEPOSITS
Banco Espirito Santo Euro 2,600,000 5.00 07/06/99 2,600,000
Banco Espirito Santo Euro 5,000,000 5.75 07/20/99 5,000,000
Banco Espirito Santo Euro 2,400,000 5.00 01/26/00 2,400,000
Banco Espirito Santo Euro 2,000,000 5.38 03/02/00 2,000,000
------------
TOTAL TIME DEPOSITS (5.39%) (AMORTIZED COST
$12,000,000) 12,000,000
------------
TOTAL INVESTMENTS (99.79%) (AMORTIZED COST
$222,220,162) 222,172,784
Other Net Assets (0.21%) 478,052
------------
TOTAL NET ASSETS (100.00%) $222,650,836
============
<FN>
<F*> Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1993, as
amended, and may be sold only to dealers in that program or other "accredited
investors". This security has been determined to be liquid under guidelines
established by the board of directors.
See accompanying notes to the financial statements.
</TABLE>
17
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
While tempted to act several times during the first six months of
this year, the Federal Reserve moved the Federal Funds Rate just
once. At the end of the second quarter the Federal Reserve raised
the Federal Funds Rate by 25 basis points, to 5.00%. The Federal
Open Market Committee also announced that it was removing its
tightening bias and reverting back to a neutral directive. The rate
hike appears to be due to the Fed's concern about tight labor
markets.
Interest rates maintained a steady upward drift during the first
and second quarter. Beginning the year at 5.09%, the yield on the
benchmark 30-year Treasury reached 5.97% at the end of the second
quarter. Interest rates reacted to growing concerns about labor
supply constraints and wage pressure. Bond prices declined in
response to the higher interest rates. These bond price declines
resulted in negative returns for the Bond Index Fund. We haven't
experienced quarterly back-to-back negative returns for the Lehman
Government/Corporate Bond Index since in the first half of 1994.
The Fed's change to a neutral bias appears to indicate that a rate
hike in August or September is unlikely. However, any sign of a
greater than anticipated rise in labor costs will likely cause the
Fed to return to its interest rate tightening bias. We see the
strengthening productivity growth and low inflation as stabilizers
to the bond market. For the second half, we see some opportunities
with new corporate issues as primary spreads widen more than
secondary spreads.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Bond Index Fund Graph]
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 1.56% 7.32% 7.51% 7.92%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
18
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
For the period ended June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $72,859,185
Short term securities 799,396
-----------
Total investments 73,658,581
Interest receivable 1,324,405
-----------
Total assets 74,982,986
-----------
LIABILITIES:
Bank overdraft 1,212
Broker payable 497,760
Payable to Conning Asset Management
Company 15,197
Payable to General American Life
Insurance Company 3,040
-----------
Total liabilities 517,209
-----------
Total net assets $74,465,777
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 3,040,543
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 24.49
TOTAL AMORTIZED COST OF INVESTMENTS $75,092,076
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Interest $ 2,090,849
-----------
Total investment income 2,090,849
-----------
EXPENSES:
Investment management charge 87,486
Administrative charge 17,497
-----------
Total expenses 104,983
-----------
Net investment income 1,985,866
-----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 126
-----------
NET UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net unrealized loss from investments (4,047,295)
-----------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(2,061,303)
===========
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
1999<F*> 1998
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 1,985,866 $ 3,487,368
Net realized gain on investments 126 126,562
Net unrealized gain (loss) on investments (4,047,295) 1,349,803
----------- -----------
Net increase (decrease) in net assets from
operations (2,061,303) 4,963,733
Capital share transactions 7,349,982 15,883,675
----------- -----------
Net increase in net assets 5,288,679 20,847,408
Net assets, beginning of year 69,177,098 48,329,690
----------- -----------
Net assets, end of year $74,465,777 $69,177,098
=========== ===========
<FN>
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
19
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND<F*>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- -----------------------------------------------------
1999<F*> 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 25.19 $ 23.19 $ 21.21 $ 20.59 $ 17.30
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.70 1.40 1.39 1.29 1.25
Net realized and unrealized gain (loss) on
investments (1.40) 0.60 0.59 (0.67) 2.04
-------- -------- -------- -------- --------
Net increase (decrease) in asset value per
share (.70) 2.00 1.98 0.62 3.29
-------- -------- -------- -------- --------
Net asset value, end of year $ 24.49 $ 25.19 $ 23.19 $ 21.21 $ 20.59
======== ======== ======== ======== ========
Total return <F2> (2.77%) 8.61% 9.34% 3.02% 19.02%
Net assets, end of period (in thousands) $ 74,466 $ 69,177 $ 48,330 $ 38,015 $ 39,316
Ratio of expenses to average net
assets <F3><F*> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average
net assets <F3> 5.59% 5.80% 6.25% 6.26% 6.43%
Portfolio turnover rate 12.40% 54.00% 47.40% 44.28% 35.35%
<CAPTION>
YEAR ENDED DECEMBER 31
--------------------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 18.03 $ 16.33 $ 15.32 $ 13.44 $ 12.32
-------- -------- -------- -------- --------
Income from operations:
Net investment income 1.06 1.07 1.09 1.08 1.03
Net realized and unrealized gain (loss) on
investments (1.79) 0.63 (0.08) 0.80 0.09
-------- -------- -------- -------- --------
Net increase in asset value per share (0.73) 1.70 1.01 1.88 1.12
-------- -------- -------- -------- --------
Net asset value, end of year $ 17.30 $ 18.03 $ 16.33 $ 15.32 $ 13.44
======== ======== ======== ======== ========
Total return <F2> (4.04%) 10.39% 6.57% 14.00% 9.09%
Net assets, end of year (in thousands) $ 26,458 $ 47,636 $ 20,217 $ 14,438 $ 11,137
Ratio of expenses to average net
assets <F3><F**> 0.30% 0.30% 0.39% 0.42% 0.42%
Ratio of net investment income to average
net assets <F3> 6.19% 6.11% 6.89% 7.63% 8.12%
Portfolio turnover rate 46.42% 8.80% 43.50% 2.23% 18.88%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> Unaudited
<F**> Name and investment objective changed from Intermediate Bond Fund on
October 1, 1992. The Investment advisor charges changed from .375 percent to
.250 percent of the average daily value of the net assets on October 1, 1992.
The objective of the Bond Index Fund is to provide a rate of return that
reflects the performance of the publicly traded bond market as a whole.
See accompanying notes to the financial statements.
</TABLE>
20
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- -------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS
Aerospace & Military Technology (.67%)
Raytheon Co, 6.45%, due 08/15/2002 $ 500,000 $ 501,095
-----------
Business Machines (1.99%)
Comdisco Inc, 6.5%, due 06/15/2000 500,000 501,770
Pitney Bowes Credit Corp, 5.65%, due 01/15/2003 1,000,000 981,140
-----------
1,482,910
-----------
Commercial Banking (6.58%)
ABN AMRO Bank-NY, 7.125%, due 10/15/2093 500,000 452,620
First National Bank Omaha, 7.32%, due 12/01/2010 1,500,000 1,494,735
Golden State Escrow Corp, 7.125%, due 08/01/2005 1,000,000 961,050
HSBC Holding PLC, 7.5%, due 7/15/2009 500,000 497,760
Nationsbank Corp, 5.375%, due 04/15/2000 500,000 498,115
Wells Fargo Capital, 7.95%, due 12/01/2026 1,000,000 996,940
-----------
4,901,220
-----------
Domestic Oil (1.05%)
Conoco Inc 5.9%, due 04/15/2004 800,000 780,624
-----------
Finance (Non - Banking) (2.01%)
Associates Corp N American, 5.8%, due 04/20/2004 500,000 481,845
Merrill Lynch & Co Inc, 8.25%, due 11/15/1999 500,000 504,790
Merrill Lynch & Co Inc, 7.0%, due 03/15/2006 500,000 506,975
-----------
1,493,610
-----------
Food & Agriculture (1.27%)
Coca Cola Enterprises, 5.75%, due 11/01/2008 500,000 461,305
Diageo Capital PLC, 6.125%, due 08/15/2005 500,000 484,450
-----------
945,755
-----------
Energy Raw Materials (.73%)
Enron Corp, 9.125%, due 04/01/2003 500,000 540,780
-----------
International Oil (.63%)
Norsk Hydro AS, 6.36%, due 01/15/2009 500,000 470,260
-----------
Media (1.66%)
Disney (Walt) Co, 5.125%, due 12/15/2003 500,000 476,045
News America Inc, 6.625%, due 01/09/2008 800,000 756,368
-----------
1,232,413
-----------
Motor Vehicles (.60%)
Ford Motor Company, 6.625%, due 10/01/2028 500,000 450,090
-----------
Railroads & Shipping (1.41%)
Norfolk Southern, 7.875%, due 02/15/2004 1,000,000 1,048,820
-----------
Retail (3.26%)
Lowes Companies Inc, 6.875%, due 02/15/2028 1,000,000 934,000
Rite-Aid Corp, 6.875%, due 08/15/2013 500,000 461,605
Wal-Mart Stores, 9.10%, due 07/15/2000 1,000,000 1,033,150
-----------
2,428,755
-----------
Telephone (3.86%)
Alltell Corp, 6.8%, due 05/01/2029 500,000 462,450
Southwestern Bell, 6.625%, due 07/15/2007 1,000,000 995,530
<CAPTION>
(continued)
21
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Telephone (continued)
Sprint Capital Corp, 6.125%, due 11/15/2008 $1,000,000 $ 922,890
Telecom De Puerto Rico, 6.15%, due 05/15/2002 500,000 493,775
-----------
2,874,645
-----------
Travel & Recreation (.95%)
Hertz Corp, 7.00%, due 04/15/2001 700,000 707,105
-----------
Utilities, Electrical & Gas (3.49%)
Hydro Quebec, 8.40%, due 01/15/2022 1,000,000 1,117,610
Pacific Gas & Electric, 7.25%, due 08/01/2026 500,000 472,670
Southern California Edison, 6.375% due 01/15/2006 500,000 492,955
Texas Utilities Electric, 8.125%, due 02/01/2002 500,000 516,700
-----------
2,599,935
-----------
TOTAL CORPORATE BONDS (30.16%) (AMORTIZED COST $22,932,572) 22,458,017
-----------
AGENCY SECURITIES
Government & State Agency (15.65%)
FHLB, 5.085%, due 10/07/2008 1,000,000 899,840
FNMA, 6.80%, due 01/10/2003 500,000 512,655
FNMA, 5.250%, due 01/15/2003 1,000,000 968,440
FNMA, 5.750%, due 02/15/2008 1,000,000 956,090
FNMA, 5.625%, due 03/15/2001 2,000,000 1,996,560
FNMA, 5.750%, due 04/15/2003 1,000,000 988,910
FNMA, 5.750%, due 06/15/2005 1,000,000 975,620
FNMA, 6.160%, due 08/07/2028 401,000 375,059
FNMA, 6.210%, due 08/06/2038 625,000 580,663
FNMA., 5.490%, due 08/18/2000 1,000,000 998,440
FNMA., 6.320%, due 03/16/2009 500,000 478,435
FNMA Global Benchmark Note, 6.00%, due 05/15/2008 1,000,000 969,840
Tennessee Valley Authority, 6.00% due 03/15/2013 1,000,000 945,620
-----------
TOTAL AGENCY SECURITIES (15.65%) (AMORTIZED COST
$11,856,013) 11,646,172
-----------
GOVERNMENT SECURITIES
United States Government Securities (50.41%)
US Treasury Bonds, 10.75%, due 02/15/2003 1,000,000 1,160,470
US Treasury Bonds, 9.875%, due 11/15/2015 500,000 682,345
US Treasury Bonds, 7.50%, due 11/15/2016 1,000,000 1,127,030
US Treasury Bonds, 8.75%, due 05/15/2017 1,000,000 1,262,340
US Treasury Bonds, 8.125%, due 08/15/2019 1,800,000 2,174,058
US Treasury Bonds, 7.875%, due 02/15/2021 1,300,000 1,543,139
US Treasury Bonds, 7.250%, due 08/15/2022 1,000,000 1,119,690
US Treasury Bonds, 5.50%, due 08/15/2028 1,000,000 915,620
US Treasury Bonds, 5.25%, due 11/15/2028 1,000,000 886,410
US Treasury Bonds, 7.750%, due 02/15/2001 1,000,000 1,034,840
US Treasury Notes, 9.25%, due 02/15/2016 500,000 651,250
US Treasury Notes, 6.25%, due 08/15/2023 1,000,000 1,004,690
US Treasury Notes, 6.00%, due 02/15/2026 800,000 780,624
<CAPTION>
(continued)
22
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C>
United States Government Securities (continued)
US Treasury Notes, 6.125%, due 11/15/2027 $1,000,000 $ 993,280
US Treasury Notes, 6.25%, due 01/31/2002 1,000,000 1,015,160
US Treasury Notes, 6.625%, due 03/31/2002 1,000,000 1,024,840
US Treasury Notes, 6.25%, due 05/31/2002 1,300,000 1,329,458
US Treasury Notes, 6.25%, due 06/30/2002 1,000,000 1,016,410
US Treasury Notes, 6.00%, due 08/15/2000 1,000,000 1,006,410
US Treasury Notes, 5.750%, due 10/31/2002 700,000 701,967
US Treasury Notes, 5.50%, due 01/31/2003 1,000,000 994,060
US Treasury Notes, 4.75%, due 11/15/2008 1,000,000 918,280
US Treasury Notes, 7.50%, due 11/15/2001 1,250,000 1,302,150
US Treasury Notes, 5.75%, due 08/15/2003 1,500,000 1,500,930
US Treasury Notes, 7.25%, due 08/15/2004 1,000,000 1,063,750
US Treasury Notes, 6.75%, due 04/30/2000 1,000,000 1,011,720
US Treasury Notes, 6.125%, due 09/30/2000 1,000,000 1,008,590
US Treasury Notes, 5.875%, due 11/15/2005 1,000,000 1,000,000
US Treasury Notes, 5.625%, due 11/30/2000 1,000,000 1,002,660
US Treasury Notes, 6.375%, due 03/31/2001 1,000,000 1,014,370
US Treasury Notes, 6.50%, due 05/31/2001 1,000,000 1,017,500
US Treasury Notes, 7.00%, due 07/15/2006 1,000,000 1,059,220
US Treasury Notes, 8.50%, due 02/15/2000 650,000 663,306
US Treasury Notes, 8.875%, due 05/15/2000 500,000 515,235
US Treasury Notes, 6.375%, due 09/30/2001 1,000,000 1,016,410
US Treasury Notes, 6.50%, due 10/15/2006 500,000 516,250
US Treasury Notes, 6.25%, due 10/31/2001 500,000 507,110
-----------
37,541,572
-----------
Other Government Securities (1.63%)
State of Israel, 6.375%, due 12/15/2005 1,000,000 953,190
Manitoba Province, 9.00%, due 12/15/2000 250,000 260,235
-----------
1,213,425
-----------
TOTAL GOVERNMENT SECURITIES (52.04%) (AMORTIZED COST
$39,504,095) 38,754,997
-----------
TOTAL BONDS (97.85%) (AMORTIZED COST $74,292,680) 72,859,186
-----------
<CAPTION>
------------------------------------------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (1.07%)
Eagle Funding Capital Corp, due 07/06/1999 400,000 399,699
World OMNI, due 07/06/1999 400,000 399,697
-----------
TOTAL SHORT TERM SECURITIES (1.07%) (AMORTIZED COST
$799,215) 799,396
-----------
TOTAL INVESTMENTS (98.92%) (AMORTIZED COST $75,091,895) 73,658,582
Other net assets (1.08%) 807,195
-----------
TOTAL NET ASSETS (100.00%) $74,465,777
===========
See accompanying notes to the financial statements.
</TABLE>
23
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
The Managed Equity Fund rose 12.75% in the first half of 1999 ahead
of the 11.74% rise in the benchmark Lipper Growth and Income
Average and behind the 13.96% increase in the Barra Value Index.
With few exceptions, the story and investment psychology remained
the same in the first quarter as high P/E, large-capitalization
stocks outperformed by a wide margin. In fact, one-third of the
performance of the S&P 500 came from AOL and Microsoft, which rose
roughly 90% and 50%, respectively, and the broader technology
sector led the way with an increase of almost 12%. While the
drought persisted for value investors, some life could be found in
certain laggard sectors. Oil services companies Diamond Offshore
and Baker Hughes led the portfolio with greater than 40% returns
for the first period. The beaten down energy sector rebounded with
a sharp recovery in the price of crude activity on the merger and
acquisition front and announced production cuts by OPEC.
The broadening of stock performance beyond the largest growth
stocks presented value portfolios with a rare opportunity to
outperform market indices. The rotation from growth to value began
abruptly in early April and lasted a mere five weeks, time enough
for the basic materials and industrial cyclicals sectors to stage
an unprecedented rally that left the growth investor spinning.
After spending all of 1998 as the biggest loser, the commodity
driven basic materials sector won the top billing in the quarter
due to a long awaited rebound in aluminum, metals, chemicals, paper
and oil.
For the second quarter, the best performance in the Fund came from
the Capital Goods sector. Illinois Tool Works and Boeing rose
roughly 30% or more, and Honeywell soared over 50%, propelled by
the news that it will be acquired by Allied Signal. A sharp
recovery in the energy sector accompanied the dramatic move upward
in the price of oil.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Managed Equity Fund Graph]
[FN]
<F*> On March 1, 1997 Conning Asset Management Company assumed
portfolio management duties from the former sub-advisor of the
fund, Morgan Stanley Asset Management.
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 17.71% 20.52% 14.86% 12.56%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
24
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $63,398,629
Short term securities 249,697
-----------
Total investments 63,648,326
Cash 40,507
Dividends receivable 50,406
-----------
Total assets 63,739,239
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 14,653
Payable to General American Life
Insurance Company 5,039
-----------
Total liabilities 19,692
-----------
Total net assets $63,719,547
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,586,307
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 40.17
TOTAL AMORTIZED COST OF INVESTMENTS $42,779,494
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $ 414,254
Interest 11,281
----------
Total investment income 425,535
----------
EXPENSES:
Investment management charge 87,721
Administrative charge 30,130
----------
Total expenses 117,851
----------
Net investment income 307,684
----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 3,242,820
----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 3,777,993
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $7,328,497
==========
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
1999<F*> 1998
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 307,684 $ 858,157
Net realized gain on investments 3,242,820 5,970,966
Net unrealized gain on investments 3,777,993 1,087,077
----------- -----------
Net increase in net assets from operations 7,328,497 7,916,200
Capital share transactions (5,412,667) (5,250,585)
----------- -----------
Net increase in net assets 1,915,830 2,665,615
Net assets, beginning of year 61,803,717 59,138,102
----------- -----------
Net assets, end of period $63,719,547 $61,803,717
=========== ===========
<FN>
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
25
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- -------------------------------------------------
1999<F*> 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 35.63 $ 31.20 $ 25.31 $ 20.93 $ 15.69
------- ------- ------- ------- -------
Income from operations:
Net investment income 0.19 0.48 0.63 0.68 0.58
Net realized and unrealized gain on investments 4.35 3.95 5.26 3.70 4.66
------- ------- ------- ------- -------
Net increase in asset value per share 4.54 4.43 5.89 4.38 5.24
------- ------- ------- ------- -------
Net asset value, end of year $ 40.17 $ 35.63 $ 31.20 $ 25.31 $ 20.93
======= ======= ======= ======= =======
Total return <F2> 12.75% 14.19% 23.29% 20.92% 33.37%
Net assets, end of period (in thousands) $63,720 $61,804 $59,138 $48,587 $40,902
Ratio of expenses to average net assets <F3> <F5> 0.39% 0.39% 0.41% 0.47% 0.48%
Ratio of net investment income to average net
assets <F3> 1.40% 1.46% 2.19% 2.97% 3.14%
Portfolio turnover rate 3.49% 67.23% 49.43% 36.44% 44.82%
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 16.27 $ 14.95 $ 14.02 $ 11.10 $ 11.45
------- ------- ------- ------- -------
Income from operations:
Net investment income 0.43 0.32 0.35 0.38 0.38
Net realized and unrealized gain (loss) on
investments (1.01) 1.00 0.58 2.54 (0.73)
------- ------- ------- ------- -------
Net increase (decrease) in asset value per share (0.58) 1.32 0.93 2.92 (9.35)
------- ------- ------- ------- -------
Net asset value, end of year $ 15.69 $ 16.27 $ 14.95 $ 14.02 $ 11.10
======= ======= ======= ======= =======
Total return <F2> (3.58%) 8.87% 6.66% 26.23% (2.99%)
Net assets, end of year (in thousands) $31,487 $32,885 $29,401 $22,006 $14,769
Ratio of expenses to average net assets <F3> 0.49% 0.50% 0.51% 0.53% 0.57%
Ratio of net investment income to average net
assets <F3> 2.65% 2.07% 2.55% 2.99% 3.47%
Portfolio turnover rate 103.93% 25.89% 9.34% 12.15% 28.38%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F5> On March 1, 1997, Conning Asset Management Company took over the asset
management of the Managed Equity Fund. The management fee was reduced from .50
percent to .40 percent on the first $10 million of assets, from .35 percent to
.30 percent on the balance over $10 million and less than $30 million and from
.30 percent to .25 percent on the balance in excess of $30 million.
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
26
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
Aerospace & Military Technology (5.24%)
<S> <C> <C>
Boeing Co. 27,200 $ 1,201,886
United Technologies Corp. 29,800 2,136,273
------------
3,338,159
------------
Air Transport (1.89%)
AMR Corp.<F*> 17,600 1,201,200
------------
Business Machines (12.46%)
Honeywell Inc. 21,800 2,526,075
IBM Corp. 28,800 3,722,400
Quantum Corp.<F*> 70,000 1,688,750
------------
7,937,225
------------
Business Services (3.18%)
Cisco Systems Inc.<F*> 31,500 2,025,828
------------
Commercial Banking (12.19%)
Banc One Corp. 29,960 1,784,478
Bank of America Corp. 19,010 1,393,661
Chase Manhattan Corp. (new) 29,200 2,529,450
Citigroup Inc. 43,350 2,059,125
------------
7,766,714
------------
Construction (2.84%)
Vulcan Materials Co. 37,500 1,809,375
------------
Domestic Oil (4.37%)
ArCo. 21,600 1,804,939
Ashland Inc. 24,400 979,050
------------
2,783,989
------------
Drugs & Medicines (5.72%)
Baxter International 16,200 982,125
Merck & Co. Inc. 19,200 1,420,800
Total Renal Care Holdings<F*> 79,750 1,241,070
------------
3,643,995
------------
Energy & Utilities (2.46%)
FPL Group Inc. 28,700 1,567,738
------------
Energy Raw Materials (2.29%)
Baker Hughes Inc. 43,500 1,457,250
------------
Finance (Non-Banking) (4.95%)
Associates First Capital Corp. 39,600 1,754,755
Providian Financial Corp. 15,000 1,402,500
------------
3,157,255
------------
Government & State Agency
(2.32%)
Federal Home Loan Mortgage
Corp. 25,500 1,479,000
------------
Industrial Miscellaneous (1.55%)
Diamond Offshore Drilling Inc. 35,000 993,125
------------
Insurance (2.26%)
Equitable Companies Inc. 21,500 1,440,500
------------
International Oil (2.56%)
Mobil Corp. 16,500 1,633,500
------------
Media (1.85%)
McGraw-Hill Inc. 21,800 1,175,827
------------
Miscellaneous Finance (2.83%)
American General Corp. 23,900 1,801,463
------------
Non-Durables & Entertainment
(3.33%)
Costco Companies Inc.<F*> 26,500 2,121,642
------------
Producer Goods (3.28%)
Illinois Tool Works Inc . 25,500 2,091,000
------------
<PAGE>
Retail (5.82%)
May Department Stores Co. 43,500 1,778,063
TJX Cos Inc. 58,000 1,932,096
------------
3,710,159
------------
Telephone (9.88%)
A T & T Corp. 24,450 1,364,604
MCI Worldcom Inc.<F*> 32,000 2,753,984
Sprint Corp. 41,200 2,175,854
------------
6,294,442
------------
Tobacco (3.57%)
Philip Morris Companies Inc. 56,600 2,274,584
------------
Travel & Recreation (2.66%)
Walt Disney Productions 55,000 1,694,659
------------
TOTAL COMMON STOCK (99.50%)
(COST $42,529,797) $ 63,398,629
------------
(continued)
27
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.39%)
Moat Funding,
5.46%, due 7/9/99 250,000 $ 249,697
------------
TOTAL SHORT TERM SECURITIES
(0.39%) (AMORTIZED COST
$249,697) 249,697
------------
TOTAL INVESTMENTS (99.89%)
(AMORTIZED COST $42,779,494) 63,648,326
Other net assets (0.11%) 71,221
------------
TOTAL NET ASSETS (100.00%) $ 63,719,547
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
28
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
The Asset Allocation Fund rose 10.73% in the first half of 1999
compared to its benchmark Lipper Flexible Average that increased
5.91%. The equity portion of the portfolio, representing
approximately 75% of assets, rose 15.23% YTD relative to an
increase in the S&P 500 12.38%. Although stock returns in the first
half of the year were excellent, the first and second quarters of
1999 had very little in common. Nothing changed in terms of market
leadership in the first quarter. The market rewarded size,
liquidity and earnings visibility. The returns to price momentum
strategies (not earnings momentum) have been better only in 1
quarter--Q4 1998--since 1980. The Asset Allocation Fund benefited
particularly from blue chip technology such as Texas Instruments,
EMC and Cisco, which handily outperformed the market indices.
The second quarter, by contrast, witnessed a rebound in distressed
emerging markets and improved market breadth that included
long-neglected value and small-cap companies. Global economic
reform and recovering commodity prices ignited a rocket beneath
traditional value sectors such as basic materials, energy and
capital goods that sent many companies up 30-40% in the first five
weeks of the quarter while their big, growth stock counterparts
fell. Growth stocks did not stay down for long, however, as
exposure to telecommunications and select computer companies proved
lucrative. Although the equities in the Asset Allocation Fund are
principally growth companies, the portfolio held up during this
phenomenal value rotation and the resulting volatility. The
strength in the portfolio came in the capital goods, telecom and
energy sectors. The biggest shift came from the formerly dominant
healthcare sector with a huge decline in the highflying
pharmaceutical stocks. Bucking this trend is the biotech company
Immunex, which was the portfolio's best performer in the quarter,
rising more than 50%.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Asset Allocation Fund Graph]
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 11.98% 16.67% 12.44% 12.30%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
29
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $ 21,914,659
Common stocks 105,209,344
Preferred stocks 990,000
Short term securities 9,280,477
------------
Total investments 137,394,480
Cash 131,636
Dividends and interest receivable 485,385
------------
Total assets 138,011,501
------------
LIABILITIES:
Payable to Conning Asset Management
Company 54,210
Payable to General American Life
Insurance Company 10,842
------------
Total liabilities 65,052
------------
Total net assets $137,946,449
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 3,317,893
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 41.58
TOTAL AMORTIZED COST OF INVESTMENTS $ 92,670,156
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $ 475,946
Interest 1,039,731
-----------
Total investment income 1,515,677
-----------
EXPENSES:
Investment management charge 322,430
Administrative charge 64,486
-----------
Total expenses 386,916
-----------
Net investment income 1,128,761
-----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 2,037,296
-----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 10,138,595
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $13,304,652
===========
</TABLE>
<PAGE>
<TABLE>
- ----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- ------------
1999<F*> 1998
------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 1,128,761 $ 2,744,919
Net realized gain on investments 2,037,296 7,623,117
Net unrealized gain on investments 10,138,595 8,241,285
------------ ------------
Net increase in net assets from operations 13,304,652 18,609,321
Capital share transactions 132,288 (5,369,170)
------------ ------------
Net increase in net assets 13,436,940 13,240,151
Net assets, beginning of year 124,509,509 111,269,358
------------ ------------
Net assets, end of period $137,946,449 $124,509,509
============ ============
<FN>
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
30
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- ---------------------------------------------------
1999<F*> 1998 1997 1996 1995
-------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 37.55 $ 31.86 $ 26.83 $ 23.20 $ 18.00
-------- -------- -------- ------- -------
Income from operations:
Net investment income 0.34 0.81 0.96 0.93 0.82
Net realized and unrealized gain (loss) on
investments 3.69 4.88 4.07 2.70 4.38
-------- -------- -------- ------- -------
Net increase (decrease) in asset value per share 4.03 5.69 5.03 3.63 5.20
-------- -------- -------- ------- -------
Net asset value, end of year $ 41.58 $ 37.55 $ 31.86 $ 26.83 $ 23.20
======== ======== ======== ======= =======
Total return <F2> 10.73% 17.86% 18.73% 15.66% 28.88%
Net assets, end of year (in thousands) $137,947 $124,510 $111,269 $86,191 $73,387
Ratio of expenses to average net assets <F3> 0.59% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income to average net
assets <F3> 2.33% 2.42% 3.24% 3.77% 3.92%
Portfolio turnover rate 7.71% 34.03% 36.34% 32.78% 33.74%
<CAPTION>
YEAR ENDED DECEMBER 31
------------------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 18.74 $ 17.11 $ 16.04 $ 13.39 $ 13.07
-------- -------- -------- ------- -------
Income from operations:
Net investment income 0.68 0.60 0.62 0.65 0.69
Net realized and unrealized gain (loss) on
investments (1.42) 1.03 0.45 2.00 (0.37)
-------- -------- -------- ------- -------
Net increase in asset value per share (0.74) 1.63 1.07 2.65 0.32
-------- -------- -------- ------- -------
Net asset value, end of year $ 18.00 $ 18.74 $ 17.11 $ 16.04 $ 13.39
======== ======== ======== ======= =======
Total return <F2> (3.95%) 9.55% 6.66% 19.81% 2.47%
Net assets, end of year (in thousands) $ 59,975 $ 65,070 $ 53,369 $21,149 $12,545
Ratio of expenses to average net assets <F3> 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income to average net
assets <F3> 3.70% 3.33% 3.80% 4.37% 5.41%
Portfolio turnover rate 75.24% 27.59% 12.14% 5.14% 15.46%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F*> Unaudited
See accompanying notes to the financial statements.
</TABLE>
31
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
- --------------------------------------------------------
<S> <C> <C>
Government & State
Agency (0.11%)
FNMA, 8.350%,
due 11/10/1999 $ 150,000 $ 151,524
TOTAL GOVERNMENT & STATE
AGENCY (0.11%)
(AMORTIZED COST $149,931) 151,524
------------
US Government Securities
(4.94%)
US Treasury Bonds, 7.250%,
due 05/15/2016 1,500,000 1,649,760
US Treasury Notes, 6.375%,
due 08/15/2002 1,000,000 1,020,160
US Treasury Notes, 5.750%,
due 08/15/2003 1,000,000 1,000,620
US Treasury Notes, 6.250%,
due 01/31/2002 1,300,000 1,319,708
US Treasury Notes, 8.000%,
due 08/15/1999 1,000,000 1,003,910
US Treasury Notes, 6.500%,
due 10/15/2006 800,000 826,000
------------
TOTAL GOVERNMENT SECURITIES
(4.94%) (AMORTIZED COST
$6,819,612) 6,820,158
------------
CORPORATE BONDS
Air Transport (0.82%)
Delta Airlines, 9.200%,
due 09/23/2014 1,000,000 1,125,220
------------
Commercial Banking (0.19%)
Boatmen's Bancshares,
6.750%, due 03/15/2003 250,000 251,708
------------
Finance (Non-Banking) (1.46%)
Associates Corp., 6.875%,
due 02/01/2003 500,000 507,580
Bear Stearns Co., 6.750%,
due 04/15/2003 1,000,000 999,300
Merrill Lynch & Co Inc.,
7.375%, due 08/17/2002 500,000 513,790
------------
2,020,670
------------
Industrial Miscellaneous
(2.01%)
Canadian National Railway,
6.625%, due 05/15/2003 500,000 495,750
Coca-Cola Company, 6.625%,
due 10/01/2002 500,000 503,890
Disney Spin III, 14.000%,
due 03/01/2000 1,000,000 979,400
E I Dupont De Nemours
& Co., 8.250%,
due 09/15/2006 250,000 273,685
Seagram Company Ltd.,
8.350%, due 11/15/2006 500,000 516,905
------------
2,769,630
------------
Liquor (0.36%)
Anheuser-Busch Companies
Inc., 6.900%,
due 10/01/2002 500,000 500,505
------------
Miscellaneous & Conglomerates
(0.37%)
Hanson Overseas BV,
7.375%, due 01/15/2003 500,000 514,945
------------
Motor Vehicles (0.74%)
Enterprise Rent A Car,
7.500%, due 06/15/2003 1,000,000 1,015,440
------------
Municipality (0.75%)
Province of Quebec -
Series A, 8.100%, due
04/23/2002 1,000,000 1,037,860
------------
<PAGE>
Non-Durables & Entertainment
(0.72%)
Waste Management Inc,
6.000%, due 05/15/2001 1,000,000 995,710
------------
Paper and Forest
Products (0.61%)
Celulosa Arauco &
Constitucion, 7.000%,
due 12/15/2007 1,000,000 858,030
------------
Telephone (1.07%)
GTE Southwest, 6.540%, due
12/01/2005 500,000 499,050
MCI Worldcom Inc., 6.400%,
due 08/15/2005 1,000,000 978,300
------------
1,477,350
------------
Utilities, Electrical &
Gas (1.50%)
Consolidated Edison,
7.375%, due 09/15/2000 500,000 508,120
Niagara Mohawk Power,
9.750%, due 11/01/2005 500,000 569,310
Northern States Power,
6.125%, due 12/01/2005 500,000 485,325
Texas Utilities Co.,
7.375%, due 08/01/2001 500,000 507,995
------------
2,070,750
------------
TOTAL CORPORATE BONDS (10.60%)
(AMORTIZED COST $14,722,708) 14,637,818
------------
(continued)
32
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- --------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
- --------------------------------------------------------
<S> <C> <C>
MORTGAGE BACKED SECURITIES
AND CMO'S
Government & State
Agency (0.22%)
FNMA 1992-128G, 6.000%,
due 02/25/2022 $ 306,983 $ 305,159
------------
TOTAL MORTGAGE BACKED
SECURITIES AND CMO'S
(AMORTIZED COST $300,736) 305,159
------------
TOTAL BONDS (15.87%)
(AMORTIZED COST
$21,992,987) 21,914,659
------------
<CAPTION>
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Aerospace & Military
Technology (2.16%)
United Technologies Corp. 41,600 2,982,179
------------
Air Transport (0.89%)
AMR Corp.<F*> 18,000 1,228,500
------------
Business Machines (6.73%)
Compaq Computer Corp. 32,000 757,984
EMC Corp./Mass<F*> 40,000 2,200,000
IBM Corp. 24,000 3,102,000
Oracle Corp.<F*> 73,800 2,739,825
Quantum Corp.<F*> 20,000 482,500
------------
9,282,309
------------
Business Services (5.69%)
CSG Systems
International<F*> 100,600 2,634,412
Cisco Systems Inc.<F*> 81,000 5,209,272
------------
7,843,684
------------
Chemicals (2.59%)
Ecolab, Inc. 40,000 1,745,000
Monsanto 46,500 1,833,821
------------
3,578,821
------------
Commercial Banking (6.49%)
Bank Of America Corp. 40,874 2,996,555
Chase Manhattan Corp.
(new) 40,800 3,534,300
Citigroup Inc. 51,000 2,422,500
------------
8,953,355
------------
Drugs & Medicines (7.52%)
Baxter International 25,000 1,515,625
Immunex Corp.<F*> 20,000 2,548,740
Eli Lilly & Co. 22,000 1,575,750
Merck & Co. Inc. 28,800 2,131,200
Pfizer Inc. 23,700 2,601,075
------------
10,372,390
------------
Electronics (6.89%)
Input/Output Inc.<F*> 100,000 756,200
Intel Corp. 32,800 1,951,600
Philips Electronics 15,640 1,577,685
Texas Instruments Inc. 36,000 5,220,000
------------
9,505,485
------------
Energy Raw Materials (1.77%)
Halliburton Co. 54,000 2,443,500
------------
Finance (Non-Banking) (1.49%)
Providian Financial Corp. 22,000 2,057,000
------------
<PAGE>
Food & Agriculture (3.34%)
Coca-Cola Company 27,000 1,687,500
Conagra Inc. 40,000 1,065,000
Pepsico Inc. 48,000 1,856,976
------------
4,609,476
------------
Government & State Agency
(1.47%)
Federal Home Loan Mortgage
Corp. 35,000 2,030,000
------------
Industrial Miscellaneous
(4.07%)
Circuit City Stores Inc. 36,000 $ 3,348,000
Diamond Offshore Drilling
Inc. 80,000 2,270,000
------------
5,618,000
------------
Insurance (2.25%)
American International
Group Inc. 26,500 3,102,143
------------
Miscellaneous Finance (1.71%)
American General Corp. 31,300 2,359,238
------------
Non-Durables & Entertainment
(1.74%)
Costco Companies Inc.<F*> 30,000 2,401,860
------------
Producer Goods (2.29%)
General Electric Corp. 28,000 3,164,000
------------
Retail (4.74%)
Family Dollar Stores 80,000 1,920,000
TJX Cos. Inc. 138,400 4,610,381
------------
6,530,381
------------
Soaps & Cosmetics (1.50%)
Bristol-Myers Squibb Co. 29,400 2,070,848
------------
<CAPTION>
(continued)
33
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- ---------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- ---------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- --------------------------------------------------------
<S> <C> <C>
Telephone (8.10%)
Bell Atlantic Corp. 32,354 $ 2,115,143
Lucent Technologies 36,460 2,458,753
MCI Worldcom Inc. <F*> 40,000 3,442,480
Sitel Corp.<F*> 82,500 242,303
Sprint Corp. 55,200 2,915,222
------------
11,173,901
------------
Tobacco (1.49%)
Philip Morris Companies
Inc. 51,100 2,053,554
------------
Travel & Recreation (1.36%)
Walt Disney Productions 60,000 1,848,720
------------
TOTAL COMMON STOCK (76.28%)
(COST $60,326,692) 105,209,344
------------
<CAPTION>
- ---------------------------------------------------------
MARKET
PREFERRED STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
International Oil (0.72%)
Lasmo PLC Series A 40,000 990,000
------------
TOTAL PREFERRED STOCK (0.72%)
(AMORTIZED COST
$1,070,000) 990,000
------------
<CAPTION>
- ---------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Paper (6.73%)
Eaglefunding Capital
Corp., 5.07%, due
07/07/99 $ 350,000 $ 349,705
Check Point Charlie,
4.97%, due 07/07/99 1,400,000 1,398,845
MPF Limited, 5.11%,
due 07/07/99 2,950,000 2,947,493
Moat Funding, 5.49%,
due 07/09/99 4,590,000 4,584,434
------------
9,280,477
------------
TOTAL SHORT TERM SECURITIES
(6.73%) (AMORTIZED COST
$9,280,477) 9,280,477
------------
TOTAL INVESTMENTS (99.60%)
(AMORTIZED COST $92,670,156) $137,394,480
Other net assets (0.40%) 551,969
------------
TOTAL NET ASSETS (100.00%) $137,946,449
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
34
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
The Int'l Index Fund rose approximately 5.11% for the first half
versus an increase of 4.11% for the MSCI EAFE Index.
International markets were mixed in the first six months with
returns largely surprising investors. The biggest surprise was the
performance of the Japanese market that remains the second largest
component of the EAFE Index. Japan posted a 14.4% gain in the
Nikkei in the first quarter amid some renewed confidence in a
corporate and fiscal restructuring. Investors are looking for signs
that the lengthy recession in that country has ended. The Euro,
launched in January, declined against the dollar and took some of
the steam off the market strength in Europe. There is lingering
concern that Europe's economies will slow in 1999.
Although the return for the Index was modest in the second quarter,
many of the markets hardest hit by the global liquidity crisis
bounced back sharply. Overall, the international markets once again
turned in a mix performance. The large European markets were tepid
with mostly single-digit returns, while the dominant U.K. market
rose a little more than 1%. The Asian markets showed the greatest
strength with the important Japanese market up approximately 10%.
Notably, Hong Kong and Singapore rose more than 30% and 40%,
respectively. While Asia and Europe would be characterized very
differently, both markets are viewed more favorably than many of
the struggling Latin American markets. In Asia investors are
focused on improvement, watching for any signs of restructuring and
favorable economic news; conversely, in Europe the focus is on
economic and political uncertainty and the potential for
disappointment.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[International Index Fund Graph]
[FN]
<F*> On January 1, 1998 Conning Asset Management Company assumed portfolio
management duties from the former sub-advisor of the fund, Provident Capital
Management, Inc. On January 1, 1998 the fund also changed its investment
objective to be one which parallels the price and yield performance of the
publicly-traded common stocks in the Morgan Stanley Capital International
Europe, Australia, and Far East Index ("EAFE Index").
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns 8.68% 8.40% 12.26%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
35
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $11,269,667
Rights and warrants 2,305
Short term securities 0
-----------
Total investments 11,271,972
Cash 79,525
Broker receivable 0
Dividends receivable 74,013
-----------
Total assets 11,425,510
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 4,613
Payable to General American Life
Insurance Company 2,841
-----------
Total liabilities 7,454
-----------
Total net assets $11,418,056
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 546,613
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 20.89
TOTAL AMORTIZED COST OF INVESTMENTS $ 8,839,383
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $158,074
Interest 5,935
--------
Total investment income 164,009
--------
EXPENSES:
Investment management charge 27,104
Administrative charge 16,609
--------
Total expenses 43,713
--------
Net investment income 120,296
--------
NET REALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY:
Net realized loss on foreign currency
conversions<F*><F*> (701)
--------
NET REALIZED LOSS FROM INVESTMENTS AND
FOREIGN CURRENCY (701)
--------
NET UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY:
Net unrealized gain on investments 330,379
Net unrealized gain on foreign currency
conversions 108,402
--------
NET UNREALIZED GAIN FROM INVESTMENTS AND
FOREIGN CURRENCY 438,781
--------
NET INCREASE IN NET ASSETS FROM OPERATIONS $558,376
========
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
1999<F*> 1998
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 120,296 $ 124,709
Net realized gain (loss) on investments and foreign
currency conversions (701) 22,428
Net unrealized gain on investments and foreign currency 438,781 1,539,675
----------- -----------
Net increase in net assets from operations 558,376 1,686,812
Capital share transactions 165,021 581,032
----------- -----------
Net increase in net assets 723,397 2,267,844
Net assets, beginning of period 10,694,659 8,426,815
----------- -----------
Net assets, end of period $11,418,056 $10,694,659
=========== ===========
<FN>
<F*> Unaudited
<F**> Foreign Currency Euro Conversion caused realized gain.
See accompanying notes to the financial statements.
</TABLE>
36
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND<F*>
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
---------------- --------------------------------------------------
1999<F***> 1998 1997 1996 1995
---------------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 19.87 $ 16.60 $ 16.23 $ 15.11 $ 13.10
------- ------- ------- ------- --------
Income from operations:
Net investment income 0.22 0.24 0.26 0.24 0.25
Net realized and unrealized gain on
investments 0.80<F**> 3.03<F**> 0.11<F**> 0.88<F**> 0.92<F**>
------- ------- ------- ------- --------
Net increase in asset value per share 1.02 3.27 0.37 1.12 1.17
------- ------- ------- ------- --------
Net asset value, end of period $ 20.89 $ 19.87 $ 16.60 $ 16.23 $ 13.94
======= ======= ======= ======= ========
Total return <F2> 5.11% 19.76% 2.27% 7.40% 8.35%
Net assets, end of period (in thousands) $11,418 $10,695 $ 8,427 $ 7,015 $ 5,460
Ratio of expenses to average net
assets <F3><F*> 0.79% 0.80% 0.80% 1.00% 1.00%
Ratio of net investment income to average net
assets <F3> 2.96% 1.29% 1.53% 1.57% 1.79%
Portfolio turnover rate 24.37% 4.90% 57.70% 19.53% 113.91%
<CAPTION>
----------------
1994
----------------
<S> <C>
Net asset value, beginning of year <F1> $ 13.10
-------
Income from operations:
Net investment income 0.13
Net realized and unrealized gain on
investments 0.71<F**>
-------
Net increase in asset value per share 0.84
-------
Net asset value, end of year $ 13.94
=======
Total return <F2> 6.42%
Net assets, end of year (in thousands) $ 4,242
Ratio of expenses to average net
assets <F3><F*> 1.00%
Ratio of net investment income to average net
assets <F3> 0.98%
Portfolio turnover rate 46.19%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eleven months ended December 31,
1993. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F*> Name and investment objective changed from the International Equity Fund
on January 1, 1997. In addition Conning Asset Management Company took over the
asset management of the International Index Fund. The investment advisor fee
changed from .70% to .50% on the first $10 million of the average daily value
of the net assets, from .60% to .40% on the balance over $10 million and less
than $20 million, and from .50% to .30% on the balance in excess of $20
million. The objective of the International Index Fund is to obtain investment
results that parallel the price and yield performance of publicly traded common
stocks in the EAFE Index.
<F**> Also includes net realized and unrealized gain (loss) on foreign
currency conversions.
<F***> Unaudited
See accompanying notes to the financial statements.
</TABLE>
37
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Australia (2.66%)
Westpac Banking 6,706 $ 43,499
Telstra Corporation Limited 13,400 76,783
Broken Hill Properties 5,591 64,762
National Australia Bank Ltd 2,900 47,988
News Corp. Ltd. AU 6,227 53,128
Western Mining Ltd. 4,131 17,746
------------
303,906
------------
Austria (0.18%)
Bank Austria AG 400 21,037
------------
Belgium (1.64%)
Electrabel SA 200 64,556
Generale De Banque 1 413
Petrofina SA 100 57,440
Fortis AG<F*> 2,079 65,284
Fortis AG - Strip VVPR<F*> 2,079 21
------------
187,714
------------
Germany (11.11%)
Deutsche Bank AG 1,150 70,089
Dresdner Bank AG 800 31,102
Sap AG 200 68,578
Sap AG-vorzug 50 19,877
Viag AG 50 23,203
Veba AG 800 47,190
Rwe AG 1,450 67,139
Metro AG 450 28,633
Siemens AG 1,550 119,563
Bayer AG 2,100 87,383
Basf AG 1,800 79,076
Deutsche Telekom AG 3,450 144,980
Allianz AG 400 111,787
Mannesmann AG DM 500 74,765
Volkswagen AG 700 45,168
Banco Bilbao Vizcaya, SA<F*> 6,993 100,961
Daimler-Chrysler AG 1,704 148,839
------------
1,268,333
------------
Denmark (0.76%)
Den Danske Bank 200 21,691
Novo-Nordisk 315 34,033
Tele Danmark 638 31,404
------------
87,128
------------
Spain (4.00%)
Telefonica De Despana 1,440 69,364
Empresa Nacional Electric 2,920 62,272
Repsol SA 1,686 34,426
Banco Santander Central 4,092 43,338
Repsol (ADR) 2,400 48,749
Telefonica (ADR) 1,353 198,990
------------
457,139
------------
Finland (1.58%)
Rauma OY 30 355
UPM - Kymmene Corp 1,100 31,536
Nokia AB - A Shares 1,700 149,015
------------
180,906
------------
<PAGE>
France (8.73%)
L'air Liquide 337 52,998
AXA UAP 733 89,423
Groupe Danone 250 64,453
Alcatel Alsthom 450 63,344
L'Oreal 100 67,598
LVMH Moet-Hennessy Louis
Vuitton 200 58,554
Rhone-Poulenc A 1,100 50,264
St Gobain 250 39,832
Societe Generale Paris 400 70,496
Elf Aquitaine 500 73,373
Total SA - B 250 32,253
France Telecom SA 2,872 216,948
Carrefour Supermarche 300 44,086
Vivendi 900 72,904
------------
996,526
------------
Great Britain (22.14%)
Abbey National PLC 2,691 50,520
Barclays PLC 4,067 118,343
Smithkline Beecham PLC 10,074 130,927
British Petroleum 12,591 225,662
British Telecommunications 15,724 263,471
British Sky Broadcasting PLC 2,769 25,687
British Gas PLC 6,927 42,311
Cable & Wireless 5,500 70,094
Reuters Group PLC 5,258 69,165
Diago PLC 8,401 87,731
Allied Zurich PLC 3,286 41,308
British American Tobacco PLC 4,559 42,866
General Electric PLC 7,574 77,245
Glaxo Holdings PLC 6,459 179,496
HSBC Holdings ($HK10) 2,300 81,428
HSBC Holdings (75P) 1,000 35,419
BG PLC (ADR) 1,323 40,517
Marks & Spencer 10,201 59,013
Centrica PLC 7,066 16,596
Unilever PLC 10,751 95,664
Halifax PLC 4,180 49,878
(continued)
38
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Great Britain (continued)
Royal Sun Alliance Insurance 3,727 33,430
Pearson PLC 3,100 62,987
Prudential Corporation PLC 6,933 102,072
Rio Tinto PLC - REG 3,869 64,859
Vodafone Group 5,102 100,528
Invensys PLC 11,095 52,512
Lloyds TSB Group 8,206 111,241
Tesco 20,100 51,723
Zeneca Group PLC 3,767 145,702
------------
2,528,395
------------
Hong Kong (2.80%)
Bank of East Asia 7,400 18,742
CLP Holdings Ltd 5,500 26,725
HSBC Holdings 200 7,295
CDL Hotels International 1,000 419
Cheung Kong 8,000 71,147
Hang Seng Bank 3,200 35,780
Wharf Holdings 4,000 12,476
Hong Kong Telecom 12,600 32,724
Hutchison Whampo 6,000 54,327
New World Development 5,000 14,983
Sun Hung Kai Properties 3,000 27,356
Swire Pacific "A" 3,500 17,323
------------
319,297
------------
Ireland (0.41%)
Allied Irish 3,528 46,388
------------
Italy (4.23%)
Assicurazioni Generali 4,300 148,995
Credito Italiano 10,654 46,804
Fiat SPA ITL1000 7,700 24,378
Ente Nazionale Idrocarburi 14,587 87,098
Edison SPA 2,500 21,656
Telecom Italia Mobile 9,198 54,921
Telecom Italia SPA 5,555 57,744
Istituto Bancario San Paolo Di
Torino 3,061 41,667
------------
483,263
------------
<PAGE>
Japan (22.98%)
Matsushita Electric (ADR) 200 39,662
Asahi Glass Co Ltd 4,000 25,942
Bank of Tokyo-Mitsubishi 9,000 128,118
Canon 1,000 28,752
Daiwa Securities 5,000 33,048
East Japan Railway 14 75,184
Fuji Bank 5,000 34,866
Fuji Photo 2,000 75,680
Fujitsu 6702 3,000 60,354
Hitachi Ltd JPY5 12,000 112,528
Honda Motors 1,000 42,384
Industrial Bank Japan 8,000 63,452
Ito Yokado 8264 1,000 66,922
Japan Air Lines 9,000 29,743
Kansai Electric Power 3,400 64,609
Kinki Nippon Railway 3,000 14,748
Komatsu Ltd. 12,000 76,638
Asahi Bank 8,000 38,336
Marutomi Group<F*> 75 142
Matsushita Electronics 7,000 135,910
Maruko Co Ltd 50 888
Mitsubishi Estate Co. 5,000 48,787
Mitsubishi Corp. 6,000 40,649
Mitsubishi Trust 4,000 38,864
Mitsubishi Chemical Corp 4,157 14,391
Mitsubishi Electric 7,000 26,893
Mitsubishi Heavy Industries 15,000 60,850
Mitsui Company 6,000 41,839
Sakura Bank 12,000 45,507
Denso Corporation 1,000 20,325
Nec Corp 4,000 49,737
Nippon Telegraph & Telephone 19 222,909
Nippon Steel Corp. 24,000 55,719
Nissan 7201<F*> 9,000 42,979
Nomura Securities 6,000 70,243
Nissen<F*> 50 223
Sankyo Co., Ltd 2,000 50,398
Sanyo Electric Co Ltd 25,000 101,622
Sharp Corp. 4,000 47,259
Sony Corp 500 53,909
Sumitomo Bank Ltd. 2,000 24,803
Tokio Marine & Fire 6,000 65,187
Tohoku Electric Power 1,100 16,650
Tokai Bank 3,000 17,102
Tokyo Electric Power 4,600 97,103
Toyota Motor Corp. 7,000 221,504
------------
2,623,358
------------
Malaysia (0.75%)
Malayan Banking Berhad 4,000 10,806
Sime Darby Berhad 6,000 7,081
Telekom Malaysia 13,500 45,428
Tenaga Nasional Berhad<F*> 9,000 18,661
United Engineers
(Malaysia)<F*> 2,000 3,104
------------
85,080
------------
(continued)
39
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Netherlands (5.03%)
Elsevier 1,359 15,766
ING Groep NV 1,234 66,809
Royal Dutch Petroleum 3,028 177,365
ABN AMRO Holdings 1,756 38,028
Koninklijke Ahold NV 600 20,666
Akzo 828 34,838
TNT Post Group 600 14,324
Koninklijke PTT Nederland 600 28,153
Koninklijke Ahold NV 600 619
Unilever NV 1,193 80,389
Philips Electronics 767 75,656
Wolters Kluwer-CVA 544 21,655
------------
574,268
------------
Norway (0.32%)
Den Norske Bank ASA 2,900 9,578
Norsk Hydro 700 26,409
------------
35,987
------------
New Zealand (0.20%)
Telecom Corp of New Zealand 5,300 22,749
------------
Portugal (0.34%)
Portugal Telecom SA 500 20,341
Electricidade De Portugal, SA 1,000 18,006
------------
38,347
------------
Sweden (1.78%)
Ericsson LM B 3,600 115,389
Foreningssparbanken AB 1,400 19,761
Volvo AB SEK5 1,200 34,793
ABB AB 2,500 33,229
Mandamus Fastigheter 70 370
------------
203,542
Singapore (0.86%)
Oversea-Chinese Banking Corp 4,800 40,035
Singapore Telecommunica-
tions<F*> 23,000 39,448
Singapore Airlines Ltd<F*> 2,000 19,031
------------
98,514
------------
Switzerland (6.20%)
Credit Suisse Group 600 103,821
Nestle SA 60 108,105
Roche Holding AG 2 32,934
Roche Holding AG 10 102,792
Swiss Reinsurance 40 76,161
Novartis AG 110 160,620
Schweizerischer Bankverein 311 92,824
ABB LTD<F*> 324 30,533
------------
707,790
------------
TOTAL COMMON STOCK (98.70%)
(AMORTIZED COST $8,837,319) $ 11,269,667
------------
<CAPTION>
- ---------------------------------------------------------
MARKET
RIGHTS SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Rights (0.02%)
Fortis AG CVG 231 1,315
------------
TOTAL RIGHTS (0.02%)
(AMORTIZED COST $1,698) 1,315
------------
<PAGE>
<CAPTION>
- --------------------------------------------------------
MARKET
WARRANTS SHARES VALUE
- --------------------------------------------------------
<S> <C> <C>
Warrants (0.00%)
Compangie Gen de Eaux
WT 2001
Expiring 2001<F*> 300 804
Wharf Holdings WT 12/99
Expiring 12/99<F*> 200 186
------------
TOTAL WARRANTS (0.00%)
(AMORTIZED COST $231) 990
------------
TOTAL INVESTMENTS (98.72%)
(AMORTIZED COST $8,839,383) 11,271,972
Other Net Assets (1.28%) 146,084
------------
TOTAL NET ASSETS (100.00%) $ 11,418,056
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
40
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
The Mid-Cap Fund rose 1.03% in the first half compared to an
increase of 6.87% for the benchmark S&P 400 Index. The story of the
past 18 months did not change in the first quarter for
capitalization segments below the very largest companies. As an
example of how investors have shunned companies within this market
segment, nine of the eleven industry groups the S&P 400 declined in
the first quarter (5 of them greater than 10%) whereas nine of the
same eleven groups in the S&P 500 rose. With the exception of the
energy sector, which saw nearly every stock in the group recover
meaningfully from their distressed levels, stock performance was
driven by a company's ability to report extreme news. The oil
drillers Diamond Offshore and R&B Falcon rose 34% and 14%,
respectively. However, investors appeared to want no part of
medium-size capitalization companies. At this time, the same can be
said for value strategies.
The long anticipated broad market rebound was impressive in the
second quarter. The Mid-Cap Fund rose a strong 11.1% in the second
quarter, although did not keep pace with a surging S&P 400 Index,
which rose 14.2%. Recovering global commodities and stabilization
of commodity prices sparked a rally in value and smaller
capitalization stocks. In sharp contrast to the first quarter, ten
of eleven economic sectors rose in the second quarter, many in
double-digits. The capital goods and technology sectors led rally
with 25% and 24% increases, respectively. Despite the show of
strength in value sectors like basic materials and capital goods,
growth investing proved not to be dead, just confined to fewer
industries. For example, select computer and telecommunication
groups remained strong. While investors' outright rejection of
smaller capitalization stocks has subsided for now, the tolerance
for any actual or perceived deterioration in a company's near-term
prospect is negligible. The best performing sector in the Mid-Cap
Fund was again energy. The second quarter highlight was the
performance of two biotech companies, Immunex and IDEC
Pharmaceuticals, each rising more than 50% on news that their new
drugs are experiencing blockbuster sales.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Mid-Cap Equity Fund Graph]
[FN]
<F*> On January 1, 1997 Conning Asset Management Company assumed
portfolio management duties from the former sub-advisor of the
fund, Provident Capital Managment, Inc. On January 1, 1997 the
fund also changed its investment objective to be one which seeks
sustained growth of capital by investing primarily in common stocks
of United States-based publicly traded companies with medium market
capitalizations, as defined by the S & P Mid Cap 400 Index.
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns (4.90%) 14.73% 13.15%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
41
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $8,107,636
Short term securities 689,516
----------
Total investments 8,797,152
Cash 57,332
----------
Total assets 8,854,484
----------
LIABILITIES:
Payable to Conning Asset Management
Company 3,796
Payable to General American Life
Insurance Company 690
Payable to broker 79,467
----------
Total liabilities 83,953
----------
Total net assets $8,770,531
==========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 399,187
Net asset value per share (Total net
assets divided by total shares of capital
stock outstanding) $ 21.97
TOTAL AMORTIZED COST OF INVESTMENTS $7,306,205
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $ 19,242
Interest 8,955
---------
Total investment income 28,197
---------
EXPENSES:
Investment management charge 21,925
Administrative charge 3,986
---------
Total expenses 25,911
---------
Net investment income 2,286
---------
NET REALIZED LOSS ON INVESTMENTS:
Net realized (loss) on investments (182,725)
---------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 256,786
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 76,347
=========
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
1999<F*> 1998
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 2,286 $ 9,770
Net realized gain (loss) on investments (182,725) 241,176
Net unrealized gain (loss) on investments 256,786 (463,606)
---------- ----------
Net increase (decrease) in net assets from
operations 76,347 (212,660)
Capital share transactions 161,271 1,893,463
---------- ----------
Net increase in net assets 237,618 1,680,803
Net assets, beginning of year 8,532,913 6,852,110
---------- ----------
Net assets, end of period $8,770,531 $8,532,913
========== ==========
<FN>
<F*>Unaudited
See accompanying notes to the financial statements.
</TABLE>
42
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND<F*>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
------------ ------------------------------------------------------
1999<F**> 1998 1997 1996 1995
------------ ------------ ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 21.75 $ 22.07 $ 16.42 $ 13.74 $ 11.35
------- ------- ------- ------- -------
Income from operations:
Net investment income 0.01 0.03 0.16 0.15 0.05
Net realized and unrealized gain (loss)
on investments 0.21 (0.35) 5.49 2.53 2.34
------- ------- ------- ------- -------
Net increase (decrease) in asset value
per share 0.22 (0.32) 5.65 2.68 2.39
------- ------- ------- ------- -------
Net asset value, end of period $ 21.97 $ 21.75 $ 22.07 $ 16.42 $ 13.74
======= ======= ======= ======= =======
Total return <F2> 1.03% (1.48%) 34.46% 19.46% 21.09%
Net assets, end of period (in thousands) $ 8,771 $ 8,533 $ 6,852 $ 4,120 $ 4,260
Ratio of expenses to average net assets <F3> 0.63% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to average
net assets <F3> 0.06% 0.13% 0.81% 1.02% 0.75%
Portfolio turnover rate 15.12% 33.53% 62.22% 56.31% 28.48%
<CAPTION>
FEBRUARY 16
YEAR ENDED (INCEPTION) TO
DECEMBER 31 DECEMBER 31
----------- --------------
1994 1993
----------- --------------
<S> <C> <C>
Net asset value, beginning of year <F1> $ 11.44 $ 10.00
------- -------
Income from operations:
Net investment income 0.10 0.06
Net realized and unrealized gain on
investments (0.19) 1.38
------- -------
Net increase in asset value per share (0.09) 1.44
------- -------
Net asset value, end of year $ 11.35 $ 11.44
======= =======
Total return <F2> (0.83%) 14.44%
Net assets, end of year (in thousands) $ 3,279 $ 1,998
Ratio of expenses to average net
assets <F3><F*> 0.65% 0.64%
Ratio of net investment income to average
net assets <F3> 0.85% 0.64%
Portfolio turnover rate 29.48% 22.64%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eleven months ended December 31,
1993. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F*> Name and investment objective changed from the Special Equity Fund
effective January 1, 1997. In addition, Conning Asset Management Company took
over the asset management of the Mid-Cap Equity Fund. The investment objective
is long term capital appreciation, which it pursues through investment
primarily in common stocks of US-based publicly traded companies with medium
market capitalizations.
<F**> Unaudited
See accompanying notes to the financial statements.
</TABLE>
43
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Air Transport (1.08%)
America West Holdings
Corp.-B<F*> 5,000 $ 94,375
------------
Business Machines (11.72%)
Gateway Inc.<F*> 1,800 106,200
Lexmark International
Group<F*> 4,000 264,248
Plantronics<F*> 3,280 213,610
Quantum Corp.<F*> 5,200 125,450
Synposys Inc.<F*> 3,000 165,561
Tech Data Corp.<F*> 4,000 153,000
------------
1,028,069
------------
Business Services (11.91%)
BMC Software Inc.<F*> 4,000 216,000
CSG Systems International<F*> 10,000 261,870
Expeditors International Of
Washington, Inc. 9,900 269,775
Intermedia Communications
Inc.<F*> 7,000 210,000
Networks Associates 5,900 86,653
------------
1,044,298
------------
Chemicals (1.56%)
Crompton & Knowles Corp. 7,000 136,934
------------
Commercial Banking (6.14%)
Commerce Bancorp<F*> 3,650 156,037
First Tennessee National
Corp. 3,400 130,260
Firstar Corporation 9,000 252,000
------------
538,297
------------
Consumer Durables (4.31%)
Furniture Brands Interna-
tional<F*> 7,500 209,063
Lennar Corp. 7,055 169,320
------------
378,383
------------
Domestic Oil (3.21%)
Basin Exploration Inc.<F*> 6,000 120,372
R & B Falcon Corp.<F*> 10,100 94,688
Range Resources Corp. 10,874 66,603
------------
281,663
------------
Drugs & Medicines (11.14%)
Beckman Instruments 2,310 112,324
Express Scripts Inc.<F*> 3,200 192,598
IDEC Pharmaceuticals
Corp.<F*> 4,000 308,248
Immunex Corp.<F*> 2,000 254,874
Total Renal Care Holdings<F*> 7,000 108,934
------------
976,978
------------
Electronics (4.18%)
Dallas Semiconductor Corp. 5,700 287,850
Globalstar Telecommunications
Ltd.<F*> 3,400 78,836
------------
366,686
------------
Energy & Utilities (0.95%)
CMS Energy Corp. 2,000 83,750
------------
Finance (Non - Banking) (2.85%)
Affiliated Managers Group<F*> 4,500 135,841
Charter One Financial Inc. 4,109 114,280
------------
250,121
------------
Food & Agriculture (4.15%)
The Earthgrains Co. 6,000 154,872
Suiza Foods Corp.<F*> 5,000 209,375
------------
364,247
------------
<PAGE>
Industrial Miscellaneous (1.62%)
Diamond Offshore Drilling
Inc. 5,000 141,875
------------
Insurance (6.14%)
Enhance Financial Services
Group 6,000 118,500
Horace Mann 5,000 135,935
Radian Group 2,600 126,911
ESG Re Ltd.<F*> 10,500 157,500
------------
538,846
------------
Media (3.82%)
Adelphia Communications Class
A<F*> 3,000 190,875
Primedia Inc.<F*> 8,500 143,965
------------
334,840
------------
Miscellaneous & Conglomerates
(1.38%)
Pinnacle West Capital 3,000 120,750
------------
Non-Ferrous Metals (1.41%)
Tredegar Industries Inc. 5,700 123,975
------------
Paper & Forest Products (2.19%)
Pentair Inc. 4,200 192,150
------------
Retail (7.95%)
Ethan Allen Interiors 5,550 209,513
Kroger Co.<F*> 8,000 223,496
Zale Corp.<F*> 6,600 264,000
------------
697,009
------------
(continued)
44
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Telephone (3.33%)
Advanced Communications
Group<F*> 10,000 $ 99,370
ICG Communications Inc.<F*> 7,500 160,313
Sitel Corp.<F*> 11,000 32,307
------------
291,990
------------
Trucking & Freight (1.40%)
Midwest Express Holdings 3,600 122,400
------------
TOTAL COMMON STOCK (92.44%)
(COST $6,616,689) $ 8,107,636
------------
<CAPTION>
- ---------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Paper (7.86%)
Moat Funding,
5.46%, due 7/ 9/99 400,000 $ 399,516
Frigate Funding,
5.85%, due 7/ 1/99 290,000 290,000
------------
689,516
------------
TOTAL SHORT TERM SECURITIES
(7.86%) (AMORTIZED COST
$689,516) 689,516
------------
TOTAL INVESTMENTS (100.30%)
(AMORTIZED COST $7,306,205) 8,797,152
Other net liabilities
(-.30%) (26,621)
------------
TOTAL NET ASSETS (100.00%) $ 8,770,531
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
45
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- --------------------------------------------------------------------
MANAGEMENT DISCUSSION
- --------------------------------------------------------------------
For the first quarter of 1999, the longstanding pattern of
small-capitalization stocks underperformed the broader stock market
continued. The pattern reversed itself, however, in the second
quarter as investors in smaller companies rejoiced when the Russell
2000 Index outperformed its larger counterpart, the Standard &
Poor's 500 Index, for the first time in almost two years. The
small-capitalization group benefited as investors turned from large
capitalization stocks and searched for companies whose shares had
lagged the broader market.
Most of the gain for small-caps stocks came from the integrated oil
and energy sector which was propelled by a 12 percent rise in crude
oil futures. Once again, this past quarter has shown that small-cap
stock investing requires a long-term commitment.
- --------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- --------------------------------------------------------------------
[Small-Cap Equity Fund Graph]
- --------------------------------------------------------------------
ANNUAL RETURNS
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR LIFE OF FUND<F*>
<S> <C> <C>
Annual Returns (8.29%) 11.53%
<FN>
<F*> The Small Cap Equity Fund began operations on May 1, 1997.
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
46
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND<F*>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------
June 30, 1999 (unaudited)
<S> <C>
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common stocks $73,222,806
Short term securities 264,000
-----------
Total investments 73,486,806
Dividends receivable 66,792
-----------
Total assets 73,553,598
-----------
LIABILITIES:
Bank overdraft 23,377
Payable to Conning Asset Management
Company 2,897
Payable to General American Life
Insurance Company 14,487
-----------
Total liabilities 40,761
-----------
Total net assets $73,512,837
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,575,715
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 46.65
TOTAL AMORTIZED COST OF INVESTMENTS $62,923,725
</TABLE>
<TABLE>
- --------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------
For the six months ended June 30, 1999 (unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends $ 420,273
Interest 6,516
----------
Total investment income 426,789
----------
EXPENSES:
Investment management charge 84,274
Administrative charge 16,855
----------
Total expenses 101,129
----------
Net investment income 325,660
----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 1,611,586
----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 3,009,407
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $4,946,653
==========
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
---------------- ------------
1999<F***> 1998
---------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 325,660 $ 586,668
Net realized gain on investments 1,611,586 2,415,099
Net unrealized gain (loss) on investments 3,009,407 (10,899,956)
----------- ------------
Net increase (decrease) in net assets from
operations 4,946,653 (7,898,189)
Capital share transactions (4,427,320) 3,246,171
----------- ------------
Net increase (decrease) in net assets 519,333 (4,652,018)
Net assets, beginning of period<F**> 72,993,504 77,645,522
----------- ------------
Net assets, end of period $73,512,837 $ 72,993,504
=========== ============
<FN>
<F*> Small-Cap Equity Fund began operations May 1, 1997.
<F**> On May 1, 1997, the assets of General American Separate Account No. 20
were exchanged for shares in the Small-Cap Equity Fund. The net assets,
beginning of period, are equal to the market value of the net assets
transferred on April 30, 1997. In exchange for the net assets transferred,
1,477,554 shares of the Small-Cap Equity Fund were issued to the General
American Separate No. 20.
<F***> Unaudited
See accompanying notes to the financial statements.
</TABLE>
47
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND<F*>
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS EIGHT MONTHS
ENDED YEAR ENDED ENDED
JUNE 30 DECEMBER 31 DECEMBER 31
---------- ----------- ------------
1999<F**> 1998 1997
---------- ----------- ------------
<S> <C> <C> <C>
Net asset value, beginning of year <F1> $ 43.55 $ 48.27 $ 36.84
------- ------- -------
Income from operations:
Net investment income 0.20 0.35 0.29
Net realized and unrealized gain (loss) on investments 2.90 (5.07) 11.14
------- ------- -------
Net increase (decrease) in asset value per share 3.10 (4.72) 11.43
------- ------- -------
Net asset value, end of period $ 46.65 $ 43.55 $ 48.27
======= ======= =======
Total return <F2> 7.12% (9.78%) 31.03%
Net assets, end of period (in thousands) $73,513 $72,994 $77,646
Ratio of expenses to average net assets <F3> 0.29% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 0.94% 0.76% 0.97%
Portfolio turnover rate 6.20% 18.77% 24.47%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eight months ended December 31,
1997. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Computed only for funds that invest greater than 10 percent of the value
of average net assets in equity securities. Computation represents total
commissions paid divided by the sum of shares purchased and sold for which
commissions were charged.
<F*> Small-Cap Equity Fund began operations May 1, 1997.
<F**> Unaudited
See accompanying notes to the financial statements.
</TABLE>
48
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
<TABLE>
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
Aerospace & Military Technology (2.71%)
<S> <C> <C>
Aviall Inc<F*> 39,900 $ 750,598
Edo Corp. 10,700 77,575
Fairchild Corp.<F*> 41,674 531,344
Hexcel Corp.<F*> 14,517 146,985
Transtechnology Corp. 10,900 214,588
United Industrial Corp. 24,300 268,807
------------
1,989,897
------------
Air Transport (1.36%)
Continental Airlines<F*> 26,200 995,600
World Corp.<F*> 27,300 2,184
------------
997,784
------------
Apparel (2.74%)
Chic By HIS Inc.<F*> 19,000 48,678
Dyersburg Corp. 27,200 34,000
Galey & Lord Inc.<F*> 22,600 98,875
Genesco Inc.<F*> 48,500 706,256
Johnson Industries Inc. 20,500 43,563
Pillowtex Corp. 22,700 370,282
Salant Corp.<F*> 914 5,713
Shelby Williams 18,500 305,250
Syms Corp.<F*> 35,500 288,438
Texfi Industries<F*> 15,900 1,908
Tultex Corp.<F*> 57,400 43,050
Worldtex Inc.<F*> 28,310 67,236
------------
2,013,249
------------
Business Machines (2.03%)
Applied Magnetics Corp.<F*> 43,385 132,844
EA Industries Inc.<F*> 4,150 415
ECC International<F*> 10,725 42,224
Environmental Elements
Corp.<F*> 5,600 18,547
Esterline Technologies
Corp.<F*> 27,500 395,313
Gleason Corp. 22,100 371,545
Monarch Machine Tool Co. 6,400 56,397
Nashua Corp.<F*> 12,100 119,488
Par Technology<F*> 14,900 109,888
Publicard Inc.<F*> 12,600 128,356
QMS Inc.<F*> 20,700 113,850
------------
1,488,867
------------
Business Services (7.79%)
Allerion Inc.<F*> 14,600 73
Bush Industries 19,250 320,031
Computer Task Group 41,900 712,300
Datapoint<F*> 16,500 12,887
Dycom Industries<F*> 27,300 1,528,800
E4L Inc.<F*> 28,400 204,111
Hospital Staffing
Services<F*> 3,200 202
ITT Educational Services
Inc.<F*> 56,250 1,465,987
Intelogic Trace Inc.<F*> 2,250 11
Rightchoice Managed Care<F*> 5,700 65,191
TRC Companies Inc.<F*> 2,200 13,475
URS Corp.<F*> 14,742 432,118
Wackenhut Corp-Class A 20,100 597,974
Wackenhut Corp-Class B 15,718 377,232
------------
5,730,392
------------
Chemicals (2.04%)
LSB Industries Inc. 5,900 8,850
Oil-Dri Corp. 14,500 232,000
Whittaker Corp.<F*> 17,500 490,000
Wynn's International Inc. 41,605 767,071
------------
1,497,921
------------
<PAGE>
Commercial Banking (2.49%)
American Banknote Corp.<F*> 37,200 11,606
First Banks America Inc.<F*> 3,500 63,655
Firstfed Financial<F*> 43,500 837,375
Oriental Financial Group 27,500 663,438
Sterling Bancorp 13,400 254,600
Unionfed Financial Corp.<F*> 440 0
Wachovia Corp. 0 17
------------
1,830,691
------------
Construction (8.41%)
Amre Inc.<F*> 14,400 29
Beazer Homes USA Inc.<F*> 19,200 445,190
Berlitz International<F*> 20,600 378,525
Cavalier Homes Inc. 21,812 178,575
Congoleum Corp.<F*> 7,900 56,777
Corrpro Companies Inc.<F*> 19,000 163,875
Elcor Corp. 27,350 1,194,839
Giant Group Ltd.<F*> 9,850 73,254
ICF Kaiser International<F*> 9,600 3,600
International Aluminum Corp. 9,300 256,327
MDC Holings Inc. 39,400 847,100
M/I Schottenstein Homes Inc. 18,400 339,241
Nortek<F*> 26,600 832,899
Puerto Rican Cement Co. Inc. 12,300 408,200
Robertson Ceco Corp.<F*> 32,500 320,938
Terex Corp.<F*> 21,800 663,527
Washington Homes Inc.<F*> 2,700 17,380
------------
6,180,276
------------
Consumer Durables (4.30%)
Craig Corp.<F*> 8,000 56,496
Crown Crafts Inc. 16,400 71,750
Oneida Ltd 34,719 976,471
(continued)
49
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
Consumer Durables (continued)
<S> <C> <C>
Royal Appliance Mfg Co.<F*> 46,500 $ 322,571
SL Industries Inc. 11,908 151,827
Starrett LS 14,800 397,750
TCC Industries Inc.<F*> 5,500 110
Thomas Industries 31,550 646,775
Windmere<F*> 32,000 540,000
------------
3,163,750
------------
Domestic Oil (4.80%)
Cross Timbers Royalty Trust 11,400 115,425
Frontier Oil Corp.<F*> 52,900 360,355
Furon Co. 35,800 680,200
Getty Realty Corp. 24,700 355,063
Giant Industries 23,200 230,538
Goodrich Petroleum Corp.<F*> 2,637 2,471
HS Resources Inc.<F*> 21,400 315,650
Kaneb Services<F*> 64,400 273,700
RPC Energy Services Inc. 55,100 482,125
Swift Energy Co.<F*> 14,577 155,784
Tokheim Corp.<F*> 15,400 176,130
Unit Corp.<F*> 40,600 329,875
Wiser Oil Co. 17,400 57,629
------------
3,534,945
------------
Drugs & Medicines (2.92%)
Advocat Inc.<F*> 10,000 19,370
Comprehensive Care<F*> 4,100 2,304
Cooper Co. Inc. 24,200 603,475
GRC International<F*> 17,500 148,750
Graham Field Health
Products<F*> 25,230 37,845
Maxxim Medical<F*> 16,900 393,973
Molecular Biosystems<F*> 23,300 56,782
OEC Medical Systems<F*> 26,100 639,450
PHP Healthcare Corp.<F*> 20,500 1,230
Pharmaceutical Resources<F*> 28,400 246,711
------------
2,149,890
------------
Electronics (6.38%)
American Precision
Industries<F*> 13,500 145,125
Bell Industries Inc. 16,712 74,151
CTS Corp. 33,752 2,362,640
Chyron Corp.<F*> 52,100 87,893
Daniel Industries Inc. 24,700 527,963
Esco Electronics Corp.<F*> 21,700 278,020
Kollmorgen Corp. 19,000 285,000
Rex Stores Corp.<F*> 18,600 554,503
Sparton<F*> 14,200 85,200
Tech-Sym<F*> 12,300 292,125
------------
4,692,620
------------
Energy & Utilities (1.72%)
Aquarion Company 20,850 724,537
Cascade Natural Gas Corp. 18,300 347,700
Compania Boliviana
Energia<F*> 3,900 166,725
Pittston Minerals Group 16,300 26,488
------------
1,265,450
------------
Energy Raw Materials (0.80%)
Martech USA Inc.<F*> 3,000 0
Wilshire Oil Co. Of
Texas<F*> 11,592 49,266
Zapata Corp. 63,140 536,690
------------
585,956
------------
<PAGE>
Finance (Non-Banking) (5.20%)
Advest Group 17,600 350,891
Atlanta Sosnoff Capital 17,200 160,166
Bluegreen Corp.<F*> 39,648 213,108
DVI<F*> 14,100 241,463
Duff & Phelps Credit Rating 12,000 802,500
First Republic Bank<F*> 15,760 456,047
Hallwood<F*> 3,700 70,992
National Discount Brokers
Group<F*> 26,300 1,525,400
Rodman & Renshaw Capital
Group<F*> 1,637 2
------------
3,820,569
------------
Food & Agriculture (6.83%)
CKE Restaurants Inc. 70,371 1,143,529
Chock Full O Nuts Co.<F*> 20,914 218,279
Cooker Restaurant Corp. 14,000 77,868
Foodmaker Inc.<F*> 79,400 2,252,975
Orange Co<F*> 19,700 107,109
RLI Corp. 19,737 764,809
Super Food Services Inc.<F*> 10,100 155,288
TCBY Enterprises 49,700 301,281
------------
5,021,138
------------
Gold (0.00%)
Empire Gold Inc.<F*> 3,500 70
------------
Industrial Miscellaneous (0.40%)
IT Group Inc.<F*> 18,321 294,272
------------
Insurance (3.70%)
Acceptance Insurance Co.<F*> 21,028 316,724
Fidelity National Financial
Inc. 40,033 840,692
Hilb, Rogal And Hamilton Co. 30,900 691,388
MMI Companies Inc. 17,800 300,375
Stewart Info Services 27,000 570,375
------------
2,719,554
------------
(continued)
50
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Media (1.81%)
Playboy Enterprises<F*> 10,100 237,350
Playboy Enterprises 'B'<F*> 41,200 1,094,354
------------
1,331,704
------------
Miscellaneous Finance (0.12%)
Stifel Financial 9,264 86,266
------------
Motor Vehicles (1.12%)
Coachmen Industries Inc. 30,800 716,100
Lamson & Sessions Co.<F*> 18,000 108,000
------------
824,100
------------
Non-Durables & Entertainment
(0.39%)
General Housewares Corp. 7,200 139,947
John Q Hammons Hotels<F*> 12,300 51,500
J. Alexanders Corp.<F*> 7,300 28,740
Tandycrafts Inc.<F*> 18,800 68,150
------------
288,337
------------
Non-Ferrous Metals (1.65%)
Ekco Group Inc.<F*> 31,900 119,625
Nord Resources Corp.<F*> 29,100 16,354
RTI International Metals<F*> 30,400 446,485
Tremont Corp. 15,400 331,100
United Park City Mines
Co.<F*> 6,340 204,465
Zemex Corp.<F*> 14,588 92,079
------------
1,210,108
------------
Paper & Forest Products (0.80%)
Chesapeake Utilities Corp. 7,900 146,640
Republic Group Inc. 24,729 445,122
------------
591,762
------------
Producer Goods (9.30%)
Acme Electric Corp.<F*> 9,553 51,940
Aeroflex<F*> 24,985 493,454
Allied Products Corp. 26,550 76,331
Ameron International 8,700 383,888
Ampco-Pittsburgh Corp. 18,900 242,147
Artra Group Inc.<F*> 12,000 162,000
Bairnco Corp. 20,100 150,750
Brown & Sharpe Mfg. Co.<F*> 8,700 47,302
CCX Corp.<F*> 2,400 2
Chase Industries Inc.<F*> 30,000 253,110
Coastcast<F*> 17,700 225,675
Fansteel Inc.<F*> 9,600 52,800
Genrad Inc.<F*> 39,500 822,073
Hughes Supply Inc. 19,250 571,475
Insteel Industries 14,400 129,600
Katy Inds Inc. 18,900 245,700
Mestek Inc.<F*> 18,600 409,200
National-Standard Co.<F*> 4,700 22,913
SPS Technologies Inc.<F*> 23,500 881,250
Scotsman Industries 17,200 370,866
Sequa Corp.<F*> 7,600 543,400
Spartech Corp. 18,200 575,575
Twin Disc Inc. 6,400 128,397
------------
6,839,848
------------
Railroads & Shipping (1.48%)
Sea Containers Ltd. 6,100 205,113
Sea Containers Ltd.-Class A 23,270 780,987
Todd Shipyards Corp.<F*> 14,300 98,313
------------
1,084,413
------------
Real Estate (0.23%)
Amrep Corp.<F*> 14,200 80,755
Deltona Corp.<F*> 5,600 2,800
Grubb & Ellis Co.<F*> 16,600 83,000
------------
166,555
------------
<PAGE>
Retail (6.60%)
Catalina Lighting Inc.<F*> 4,200 21,000
Chart House Enterprises<F*> 15,600 116,017
Cole National Corp.<F*> 19,300 153,184
Kenneth Cole
Productions-A<F*> 27,300 760,988
Converse Inc.<F*> 32,400 117,450
Gottschalks Inc.<F*> 11,700 106,763
Intertan Inc.<F*> 20,600 422,300
Jo-Ann Stores Inc.-Class
A<F*> 19,000 285,000
Luria & Son<F*> 300 3
Morgan Products<F*> 12,300 46,888
Mortons Restaurant Group<F*> 13,400 255,431
O'Sullivan Industries<F*> 34,500 586,500
Piccadilly Cafeterias Inc. 21,400 177,877
Rowe Furniture Corp. 28,200 294,322
Sizzler International
Inc.<F*> 54,100 121,725
Sport Supply Group Inc.<F*> 12,800 129,600
Tyler Technologies<F*> 38,600 265,375
Uno Restaurant Corp.<F*> 22,350 209,531
Watsco Inc. 28,325 463,822
World Fuel Services Corp. 21,325 314,544
------------
4,848,320
------------
Soaps & Cosmetics (0.01%)
Scott's Liquid Gold Inc. 3,100 5,617
------------
Steel (2.27%)
Huntco Inc. 10,300 30,900
Keystone Consolidated
Industries<F*> 10,500 69,563
NS Group Inc.<F*> 26,800 247,900
(continued)
51
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- --------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 1999
- --------------------------------------------------------------------
- ---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
- ---------------------------------------------------------
<S> <C> <C>
Steel (continued)
Reliance Steel & Aluminum 33,900 $ 1,322,100
------------
1,670,463
------------
Telephone (0.02%)
Intellicall Inc.<F*> 13,515 16,894
------------
Tobacco (1.31%)
Brooke Group Ltd. 36,600 855,525
Standard Commercial Corp. 18,444 108,359
------------
963,884
------------
Travel & Recreation (0.38%)
Jackpot Enterprises<F*> 18,019 153,161
K2 Inc. 1 9
PS Group Holdings Inc. 11,500 125,776
------------
278,946
------------
Trucking & Freight (0.37%)
International Shipholding 12,825 184,359
Matlack Systems Inc.<F*> 16,900 88,725
------------
273,084
------------
Utilities, Electrical & Gas
(5.12%)
American States Water
Company 16,400 465,350
Bangor Hydro Electric 14,900 240,263
Central Vermont Public
Service 23,400 299,801
Chart Industries 43,225 340,396
Green Mountain Power Corp. 8,500 95,625
Nui Corp. 19,000 475,000
North Carolina Natural Gas 19,750 672,725
St. Joseph Light & Power 17,000 349,554
TNP Enterprises Inc. 22,800 826,500
------------
3,765,214
------------
TOTAL COMMON STOCK (99.60%)
(COST $62,659,725) $ 73,222,806
------------
<CAPTION>
- ---------------------------------------------------------
PAR MARKET
RIGHTS VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Contingent Rights
Hills Store Contingent Value
Rights 14,300 $ 0
Wahlco Contingent Litigation
Rights 1,100 0
------------
0
------------
TOTAL CONTINGENT RIGHTS (0.00%)
(AMORTIZED COST $0) 0
------------
<PAGE>
<CAPTION>
- ---------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
- ---------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.36%)
Check Point Charlie, 5.86%,
due 7/1/1999 264,000 264,000
------------
TOTAL SHORT TERM SECURITIES
(0.36%) (AMORTIZED COST
$264,000) 264,000
------------
TOTAL INVESTMENTS (99.96%)
(AMORTIZED COST $62,923,725) 73,486,806
Other net assets (0.04%) 26,031
------------
TOTAL NET ASSETS (100.00%) $ 73,512,837
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
52
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 1--ORGANIZATION
General American Capital Company (the Company), commenced operations
on October 1, 1987, and is registered under the Investment Company
Act of 1940 as amended, as an open-end diversified management
investment company. The Company offers to its shareholders eight
separate investment funds (the Funds) which operate as distinct
investment vehicles. These are the S & P 500 Index Fund, Money
Market Fund, Bond Index Fund, Managed Equity Fund, Asset Allocation
Fund, International Index Fund, Mid-Cap Equity Fund and Small-Cap
Equity Fund. The International Index and Mid-Cap Equity Funds began
operations on February 16, 1993. The Small-Cap Equity Fund began
operations on May 1, 1997. As of June 30, 1999, the Company sells
its shares to separate accounts established by General American Life
Insurance Company (General American), RGA Reinsurance Company (RGA)
a wholly owned subsidiary of Reinsurance Group of America, Inc.,
which is a majority owned subsidiary of General American, Security
Equity Life Insurance Company (Security Equity), Cova Financial
Services Life Insurance Company, Cova Financial Life Insurance, and
First Cova Financial Life Insurance Company, wholly owned
subsidiaries of General American Life Insurance Company.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
followed by the Company in the preparation of financial statements.
The policies are in conformity with generally accepted accounting
principles.
A. INVESTMENTS:
Common stocks of domestic companies are valued based on the
closing sale price on the New York Stock Exchange for securities
traded on that exchange, and for securities not so traded, at the
last bid price of over-the-counter market quotations as of the close of
business on June 30. Common stocks of foreign companies are valued based
on the closing sale price on the primary exchange for which the security
is listed. The market values for bonds and short term securities with
maturities of 60 days or more at date of valuation are determined daily
by an independent pricing service based on current market conditions.
Short term securities with maturities of less than 60 days at date of
valuation are valued at amortized cost, which approximates market value.
B. REPURCHASE AGREEMENTS:
Short-term investments include repurchase agreements with a member bank
of the Federal Reserve System or a primary dealer in U.S. Government
securities. Under such agreements, the bank or primary dealer agrees to
repurchase the underlying U.S. Government securities at a mutually agreed
upon time and price.
C. FOREIGN CURRENCY TRANSLATIONS:
Securities and other assets and liabilities denominated in foreign
currencies are translated each business day into U.S. dollars based upon
the closing rate of exchange. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated
into U.S. dollars based upon the prevailing exchange rate on the
respective dates of the transactions.
In accordance with Statement of Position (SOP) 93-4, "Foreign Currency
Accounting and Financial Statement Presentation for Investment Companies,"
reported net realized gains or losses from foreign currency transactions
arise from sales of portfolio securities and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books and the U.S. dollar equivalent actually received or paid.
Reported net unrealized gains and losses from foreign currency
transactions arise from changes in the value of assets and liabilities,
including investments in securities at June 30, resulting from changes
in the exchange rate.
<PAGE>
D. DERIVATIVE FINANCIAL INSTRUMENTS:
A derivative financial instrument in very general terms refers to a
security whose value is "derived" from the value of an underlying asset,
reference rate or index.
The Capital Company has a variety of reasons to use derivative instruments,
such as to attempt to protect the Company against possible changes in the
market value of its portfolio and to manage the portfolio's effective
yield, maturity and duration. All of the Company's portfolio holdings,
including derivative instruments, are marked to market each day with the
change in value reflected in the unrealized appreciation/depreciation on
securities. Upon disposition, a realized gain or loss is recognized accord-
ingly, except when taking delivery of a security underlying a futures
contract. In these instances the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract. The
Capital Company's utilization of derivative financial instruments is
substantially limited to the use of forward exchange contracts to hedge
foreign currency transactions, interest rate futures contracts to manage
interest rate risk and S&P 500 Index futures contracts to manage
performance.
Forward Foreign Currency Contracts:
The International Index Fund enters into forward exchange contracts to
hedge foreign currency transactions and not to engage in currency
speculation. The Fund's forward exchange contracts do not subject the
company to risk from exchange rate movements because gains and losses on
such contracts offset losses and gains, respectively, on the assets being
hedged. At June 30, the Company had no open foreign currency exchange
contracts that obligate it to receive or deliver currency at specified
future dates. The forward exchange contracts generally require the Company
to exchange U.S. dollars for foreign currencies at maturity, at rates
agreed to at inception of
53
<PAGE>
<PAGE>
the contracts. The U.S. dollar value of foreign currency underlying all
contractual commitments held by the Fund and the resulting unrealized
appreciation or depreciation are determined using foreign currency exchange
rates from an independent pricing service. If the counterparties to the
exchange contracts (primarily AA rated international banks) do not fulfill
their obligations to deliver the contracted currencies, the Company could
be at risk for any currency related fluctuations.
Futures Contracts:
A futures contract is an agreement involving the delivery of a particular
asset on a specified future date at an agreed upon price. The Company
generally invests in futures on U. S. Treasury Bonds and the S&P 500 Index
and typically closes the contract prior to the delivery date. Upon entering
into futures contracts, the Company maintains, in a segregated account with
a custodian, securities with a value equal to its obligation under the
futures contracts. During the period the futures contract is open, payments
are received from or made to the custodian based upon changes in the value
of the contract (the variation margin). U. S. Treasury Bond futures
contracts are entered into in the Asset Allocation Fund to hedge market
price risks of fixed-rate bonds. S&P 500 Index futures contracts are
entered into in the S & P 500 Index Fund to manage and more closely track
the performance of the S&P 500 Index.
At June 30, 1999, the Company had no open U. S. Treasury Bond futures
contracts.
E. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment transactions are recorded on a trade date basis (date the order
to buy or sell is executed). Dividends are recognized as income on the
ex-dividend date while interest income and amortization of premium and dis-
count are recorded on an accrual basis.
F. FEDERAL INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS:
No provision for Federal income taxes is necessary because each Fund
qualifies as a "regulated investment company" under Subchapter M of the
Internal Revenue Code and intends to distribute each year substantially all
of its net investment income and realized gains to its shareholders. At
June 30, 1999, the Bond Index Fund had an accumulated capital loss
carryforward for tax purposes of $1,885,188. Of this amount, $1,702,838 and
$182,350 will expire on December 31, 2002, and 2003 respectively.
G. CONSENT DIVIDENDS:
The Funds follow the accounting practice known as consent dividending,
whereby substantially all of its net investment income and realized gains
are treated as being distributed daily to their shareholders and are
immediately reinvested in that Fund.
H. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
NOTE 3--MANAGEMENT AND ADMINISTRATIVE FEES
The Company has entered into an Investment Advisory Agreement with
Conning Asset Management Company (Investment Advisor) with respect
to all of its Funds. Certain officers and directors of the Company
are also officers and directors of the Investment Advisor. For its
services to the Funds, the Investment Advisor charges a fee, which
is accrued daily against each Fund. The fees charged each Fund,
stated as an annual percentage of the average daily value of the net
assets, are:
S & P 500 Index Fund .250 Percent
Money Market Fund .125 Percent
Bond Index Fund .250 Percent
Asset Allocation Fund .500 Percent
Small-Cap Equity .250 Percent
<PAGE>
The fee (percentage effective March 1, 1997) charged the Managed
Equity Fund is stated as a series of annual percentages of the
average daily net assets of that Fund. The percentages decrease with
respect to assets of the Fund above certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .40%
Next $20 million .30%
Balance over $30 million .25%
The fee charged the International Index Fund is stated as a series
of annual percentages of the average daily net assets of that Fund.
The percentages decrease with respect to assets of the fund above
certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .50%
Next $10 million .40%
Balance over $20 million .30%
The fee charged for the Mid-Cap Equity Fund is stated as a series of
annual percentages of the average daily net assets of that Fund. The
percentages decrease with respect to assets of the Fund above
certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .55%
Next $10 million .45%
Balance over $20 million .40%
54
<PAGE>
<PAGE>
All operational expenses of the Company are paid by General
American, which charges administrative fees to each Fund in return.
Certain officers and directors of the Company are also officers and
directors of General American, RGA, Security Equity and Cova.
The administrative expenses are charged at an annual rate based on
the average daily value of the net assets in each Fund, as follows:
S&P 500 Index Fund .05 Percent
Money Market Fund .08 Percent
Bond Index Fund .05 Percent
Managed Equity Fund .10 Percent
Asset Allocation Fund .10 Percent
International Index Fund .30 Percent
Mid-Cap Equity Fund .10 Percent
Small-Cap Equity Fund .05 Percent
NOTE 4--INVESTMENT OBJECTIVES AND MANAGER CHANGES
Effective January 1, 1997, the International Equity Fund became the
International Index Fund. The investment objective of the
International Index Fund is to obtain investment results that
parallel the price and yield performance of publicly traded common
stocks in the Morgan Stanley Capital International Europe,
Australia, and Far East Index ("EAFE Index"). The portfolio manager
of the International Index Fund is Conning Asset Management Company.
The total investment advisor fees were reduced as a result of the
changes.
Effective January 1, 1997, the Special Equity Fund became the
Mid-Cap Equity Fund. The investment objective of the Mid-Cap Equity
Fund is to seek sustained growth of capital by investing primarily
in common stocks of United States-based publicly traded companies
with "medium market capitalizations." "Medium market capitalization
companies" are those whose market capitalization falls within the
range of the S&P Mid-Cap 400 at the time of the Fund's investment.
The portfolio manager of Mid-Cap Equity Fund is Conning Asset
Management Company and the total management fee rate remains
unchanged from that of the Special Equity Fund.
Effective March 1, 1997, the portfolio manager for the Managed
Equity Fund became Conning Asset Management Company. The total
investment advisor charges were reduced due to this change.
The Small-Cap Equity Fund commenced operations on May 1, 1997
subsequent to a transfer of assets from General American Life
Insurance Company Separate Account No. 20, which had similar
investment objectives, policies, and limitations, in exchange for
shares of the Small-Cap Equity Fund. Separate Account No. 20 was not
registered under the Registered Investment Company Act of 1940 and
has a different fee and expense structure than the Small-Cap Equity
Fund. While Separate Account No. 20 continues to exist, its assets
now consist solely of shares of the Small-Cap Equity Fund. The
Small-Cap Equity Fund's portfolio of investments on May 1, 1997 was
the same as the portfolio of Separate Account No. 20 immediately
prior to the transfer. Separate accounts which invested in Separate
Account No. 20 prior to the transfer now invest directly in the
Small-Cap Equity Fund. The Small-Cap Equity Fund seeks to provide a
rate of return that corresponds to the performance of the common
stock of small companies, while incurring a level of risk that is
generally equal to the risks associated with small company common
stock. The Fund attempts to duplicate the performance of the
smallest 20% of companies, based on capitalization size, that are
based in the United States and listed on the New York Stock
Exchange.
<PAGE>
NOTE 5--INVESTMENTS
The amortized cost of investments for federal income tax purposes as
of June 30, 1999 is as follows:
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED
INDEX MARKET INDEX EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Bonds $ -0- $ -0- $74,292,680 $ -0-
Common stocks 407,847,570 -0- -0- 42,529,797
Preferred stocks -0- -0- -0- -0-
Short term
securities 1,375,000 222,220,162 799,396 249,697
------------ ------------ ----------- -----------
Total $409,222,570 $222,220,162 $75,092,076 $42,779,494
============ ============ =========== ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Bonds $ 21,992,987 $ -0- $ -0- $ -0-
Common stocks 60,326,692 8,837,319 6,616,689 62,659,725
Preferred stocks 1,070,000 -0- -0- -0-
Warrants -0- 2,064 -0- -0-
Short term
securities 9,280,477 -0- 689,516 264,000
------------ ------------ ----------- -----------
Total $ 92,670,156 $ 8,839,383 $ 7,306,205 $62,923,725
============ ============ =========== ===========
</TABLE>
Gross unrealized gains and losses by fund for the period ended June
30, 1999 excluding the Money Market Fund, which has no unrealized
gains or losses, are as follows:
<TABLE>
<CAPTION>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
Unrealized gains $421,936,172 $ 597,356 $22,773,714
Unrealized losses 12,963,177 2,030,850 1,904,882
------------ ------------ -----------
Net unrealized
gain on
investments $408,972,995 $ (1,433,494) $20,868,832
============ ============ ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Unrealized gains $ 49,201,686 $ 4,206,833 $ 2,306,867 $23,531,710
Unrealized losses 4,477,362 1,774,244 815,920 12,968,631
------------ ------------ ----------- -----------
Net unrealized
gain on
investments $ 44,724,324 $ 2,432,589 $ 1,490,947 $10,563,079
============ ============ =========== ===========
</TABLE>
The "special identification" method is used to determine the cost of
securities sold.
55
<PAGE>
<PAGE>
Purchases and proceeds from sales and maturities of other than short
term securities and United States government obligations for the
period ended June 30, 1999 were as follows:
<TABLE>
<CAPTION>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
Purchases $ 81,684,834 $ 8,697,118 $ 2,099,420
============ =========== ===========
Sales and
Maturities $ 46,762,380 $ 3,023,420 $ 5,500,028
============ =========== ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ 7,403,842 $ 3,041,865 $ 1,170,175 $ 4,270,141
============ ============ =========== ===========
Sales and
Maturities $ 9,331,129 $ 2,620,931 $ 1,522,518 $ 8,255,983
============ ============ =========== ===========
</TABLE>
Purchases and proceeds from sales and maturities of United States
government obligations for the period ended June 30, 1999 were as
follows:
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED
INDEX MARKET INDEX EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ -0- $ -0- $10,069,617 $ -0-
============ ============ =========== ===========
Sales and
Maturities $ -0- $ -0- $ 5,567,625 $ -0-
============ ============ =========== ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ 2,232,672 $ -0- $ -0- $ -0-
============ ============ =========== ===========
Sales and
Maturities $ -0- $ -0- $ -0- $ -0-
============ ============ =========== ===========
</TABLE>
NOTE 6--CAPITAL STOCK
As of June 30, 1999, in the aggregate, there were five hundred
million (500,000,000) shares of $.01 par value capital stock
authorized. On May 1, 1997 shares of the Company, as noted below,
were exchanged for cash and invested assets, less any investment
related liabilities of General American Separate Account No. 20. The
unrealized appreciation at the time of the exchange was $12,703,457
for Separate Account No. 20.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
S & P 500 INDEX FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 1,160,354 $ 61,448,494 2,744,937 $ 120,213,688
Shares redeemed (593,058) (31,058,394) (1,602,118) (70,940,064)
----------- ------------- ----------- -------------
Net increase 567,296 $ 30,390,100 1,142,819 $ 49,273,624
=========== ============= =========== =============
<PAGE>
<CAPTION>
MONEY MARKET FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 8,699,637 $ 169,425,300 15,897,608 $ 297,646,784
Shares redeemed (9,615,874) (187,682,694) (13,265,822) (248,469,980)
----------- ------------- ----------- -------------
Net increase/
decrease (916,237) $ (18,257,394) 2,631,786 $ 49,176,804
=========== ============= =========== =============
<CAPTION>
BOND INDEX FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 600,468 $ 14,974,407 1,222,833 $ 29,466,002
Shares redeemed (306,177) (7,624,425) (560,371) (13,582,327)
----------- ------------- ----------- -------------
Net increase 294,291 $ 7,349,982 662,462 $ 15,883,675
=========== ============= =========== =============
<CAPTION>
MANAGED EQUITY FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 69,119 $ 2,580,703 282,811 $ 9,251,458
Shares redeemed (217,556) (7,993,370) (443,481) (14,502,043)
----------- ------------- ----------- -------------
Net decrease/
increase (148,437) $ (5,412,667) (160,670) $ (5,250,585)
=========== ============= =========== =============
<CAPTION>
ASSET ALLOCATION FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold (223,831) $ (8,750,385) 456,190 $ 15,401,821
Shares redeemed 225,851 8,882,673 (632,758) (20,770,991)
----------- ------------- ----------- -------------
Net increase/
decrease 2,020 $ 132,288 (176,568) $ (5,369,170)
=========== ============= =========== =============
<CAPTION>
INTERNATIONAL INDEX FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 36,710 $ 751,060 96,834 $ 1,801,096
Shares redeemed (28,221) (586,039) (66,500) (1,220,064)
----------- ------------- ----------- -------------
Net increase 8,489 $ 165,021 30,334 $ 581,032
=========== ============= =========== =============
<CAPTION>
MID-CAP EQUITY FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 55,927 $ 1,160,257 142,877 $ 3,176,924
Shares redeemed (49,100) (998,986) (60,925) (1,283,461)
----------- ------------- ----------- -------------
Net increase 6,827 $ 161,271 81,952 $ 1,893,463
=========== ============= =========== =============
<PAGE>
<CAPTION>
SMALL-CAP EQUITY FUND
---------------------------------------------------------
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 131,438 $ 5,470,782 252,394 $ 11,970,218
Shares redeemed (231,735) (9,898,102) (184,849) (8,724,047)
----------- ------------- ----------- -------------
Net decrease/
increase (100,297) $ (4,427,320) 67,545 $ 3,246,171
=========== ============= =========== =============
</TABLE>
56
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
June 30, 1999
BOARD OF DIRECTORS
Theodore M. Armstrong
Alan C. Henderson
Richard A. Liddy, Chairman
Matthew P. McCauley
Harry E. Rich
INVESTMENT ADVISOR
Conning Asset Management Company
CUSTODIAN
Bank of New York
LEGAL COUNSEL
Stephen E. Roth
Sutherland, Asbill & Brennan, Washington D.C.
If distributed to prospective investors, this report
must be preceded or accompanied by a current prospectus.
The prospectus is incomplete without reference to the
financial data contained in this annual report.
57
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