<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
February 2000
Dear Shareholder:
We are pleased to provide you with the Annual Report for General American
Capital Company, covering financial results through December 31, 1999.
General American Capital Company is an underlying investment vehicle for
variable universal life insurance and variable annuity products offered by
General American Life Insurance Company and other affiliated insurance
companies.
This report contains financial data and management commentary organized by
fund so that you can see each fund's total picture in one place. We've also
included an Economic Overview for a broader prospective on the events that
influenced investment performance in 1999.
We hope you find this report informative. Thank you for choosing our
investment funds.
/s/ Richard A. Liddy
Richard A. Liddy
Chairman of the Board
1
<PAGE>
<PAGE>
ECONOMIC OVERVIEW
At the start of a new century, the U.S. economy is on the verge of its longest
expansion in the nation's history. The expansion, which began in March 1991,
will reach a record nine years in March 2000. We have enjoyed almost 20 years
of falling or stable inflation, and unemployment has moved steadily lower since
1992. Perhaps more important, hourly wages have risen faster than inflation over
the past five years. This is a reversal of the 1970s and 1980s when inflation
exceeded wage growth. During that period, consumers seemed to get less for the
same amount of work.
Things are going so well that many people cannot understand why the Federal
Reserve would want to interfere. Many investors feel strong productivity growth
will keep inflation in check, so there is no need to worry about tight labor
markets. Moreover, strong economic growth is an important factor in promoting
strong productivity growth. So the thinking goes that the Fed should be
accommodating or even promoting economic growth, rather than trying to subdue
it at some "sustainable" level.
After lowering the fed funds rate 0.75 percent the last four months of 1998,
the Fed reversed course. Beginning June 1999, the Fed gradually increased the
fed funds target 0.75 percent, ending 1999 at the same 5.50% rate it stood at
year-end 1997. The Fed has since increased another 0.25 percent in February
2000, and we expect one or two more tightening moves as the year progresses.
The stock market will have an increasingly important effect on consumer
activity. In 1999, as in recent years, it gave a remarkable performance. The
Dow Jones Industrial Index ended the year up 27.2 percent, while the S&P 500
returned 21.04 percent. Meanwhile, small cap stocks also made a comeback in
1999. The Russell 2000 index returned 21.35 percent in 1999, after a negative
3.45 percent return in 1998. The big winners were those who owned technology
stocks. The Nasdaq Composite Index, a good indicator of technology stocks, was
up a remarkable 67.47 percent in 1999.
So what is the stock market telling us about the new year? While, the overall
indices are relatively flat through early February, it is notable to observe
the sectors showing weakness. The steel sector is down 20.7 percent, the
household furniture sector is down 21.4 percent, paper and forest products
are down 22.8 percent, and containers are down 27.2 percent. This suggests
that the stock market anticipates further Fed rate hikes, and these
economically sensitive sectors will slow down.
2
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors
General American Capital Company:
We have audited the statements of assets and liabilities, including
the schedules of investments, of the S & P 500 Index, Money Market,
Bond Index, Managed Equity, Asset Allocation, International Index,
Mid-Cap Equity and Small-Cap Equity Funds of General American
Capital Company as of December 31, 1999, the related statements of
operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period then ended,
and the financial highlights information for the periods presented.
These financial statements and the financial highlights information
are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements and financial highlights information based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights information are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of December 31, 1999, by correspondence with
the custodians and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
information referred to above present fairly, in all material
respects, the financial position of the S&P 500 Index, Money
Market, Bond Index, Managed Equity, Asset Allocation, International
Index, Mid-Cap Equity and Small-Cap Equity Funds of General
American Capital Company as of December 31, 1999, the results of
their operations for the year then ended, the changes in their net
assets for each of the years in the two-year period then ended, and
the financial highlights information for the periods presented, in
conformity with generally accepted accounting principles.
/s/ KPMG LLP
St. Louis, Missouri
February 11, 2000
3
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The S & P 500 Index Fund rebounded strongly in the fourth quarter to end the
year 1999 with over a 20% gain for the fifth consecutive year. The year turned
out to be one of extremes as performance for growth and large cap stocks
continued to dominate value stocks. The largest 30 stocks in the S&P 500
contributed 87% of the gain for the year. Technology and technology related
sectors drove the overall market and dramatically affected the performance of
the index for the year. Three sectors, health care, consumer staples and
utilities, reported market value declines for the year.
The rising interest rate environment in 1999 led to a growing appetite for
those companies reporting rapid growth in unit sales. Increasing oil prices as
well as high employment levels in general had only a minor effect on the
inflation rate. In fact, the U.S. GDP deflator reported less than a 1.5% gain,
year over year.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 20.57% 28.11% 17.83% 15.88%
</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.
4
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common Stocks $895,166,445
Short term securities 2,879,272
------------
Total investments 898,045,717
Cash 199,967
Dividends receivable 665,860
------------
Total assets 898,911,544
------------
LIABILITIES:
Payable to Conning Asset Management
Company 185,698
Payable to General American Life
Insurance Company 37,139
------------
Total liabilities 222,837
------------
Total net assets $898,688,707
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 14,763,135
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 60.87
TOTAL AMORTIZED COST OF INVESTMENTS $460,163,132
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 10,048,497
Interest 119,963
------------
Total investment income 10,168,460
------------
EXPENSES:
Investment management charge 1,969,064
Administrative charge 393,813
------------
Total expenses 2,362,877
------------
Net investment income 7,805,583
------------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 53,583,272
------------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 88,991,629
------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $150,380,484
============
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
------------ ------------
1999 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income $ 7,805,583 $ 7,155,143
Net realized gain 53,583,272 34,309,052
Net unrealized gain 88,991,629 108,174,275
------------ ------------
Net increase in net assets from operations 150,380,484 149,638,470
Capital share transactions 47,818,779 49,273,624
------------ ------------
Net increase in net assets 198,199,263 198,912,094
Net assets, beginning of year 700,489,444 501,577,350
------------ ------------
Net assets, end of period $898,688,707 $700,489,444
============ ============
</TABLE>
See accompanying notes to the financial statements.
5
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND<F*>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
--------------------------------------------------------------------
1999 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 .54 .53 .52 0.53 0.46
Net realized and unrealized gains on
investments 9.84 10.56 9.21 5.00 6.04
-------- -------- -------- -------- --------
Net increase in asset value per share 10.38 11.09 9.73 5.53 6.50
-------- -------- -------- -------- --------
Net asset value, end of period $ 60.87 $ 50.49 $ 39.40 $ 29.67 $ 24.14
======== ======== ======== ======== ========
Total return <F2> 20.57% 28.15% 32.80% 22.89% 36.85%
Net assets, end of period (in thousands) $898,689 $700,489 $501,577 $340,201 $247,313
Ratio of expenses to average net assets <F3> .30% .30% .30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> .99% 1.21% 1.48% 1.97% 2.19%
Portfolio turnover rate 13.46% 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.
<F*> This Fund formerly known as the Equity Index Fund.
</TABLE>
See accompanying notes to the financial statements.
6
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Aerospace & Military Technology (0.92%)
<S> <C> <C>
Boeing Co. 67,880 $ 2,821,229
Crane & Co. 4,750 94,405
General Dynamics Corp. 14,600 770,150
B F Goodrich 8,000 220,000
Lockheed Martin Corp. 28,706 627,944
Rockwell International Corp. 13,850 663,069
Teledyne Technologies
Inc.<F*> 1 9
Textron Inc. 10,800 828,220
United Technologies Corp. 34,800 2,262,000
------------
8,287,026
------------
Air Transport (0.32%)
AMR Corp.<F*> 10,800 723,600
Delta Air Lines Inc. 9,700 483,176
FDX Holding Corp.<F*> 21,660 886,695
Southwest Airlines 36,637 593,044
US Air Group<F*> 5,200 166,722
------------
2,853,237
------------
Apparel (0.31%)
CVS Corp. 28,500 1,138,205
Jostens Inc. 2,400 58,349
Liz Claiborne Inc. 4,300 161,788
Nike Inc. Class B 20,400 1,011,064
Reebok Intl. Inc.<F*> 4,000 32,748
Russell Corp. 2,400 40,200
Springs Industries 1,300 51,918
VF Corp. 8,600 258,000
------------
2,752,272
------------
Business Machines (4.99%)
Analog Devices<F*> 12,700 1,181,100
Apple Computer Inc.<F*> 11,700 1,202,900
Compaq Computer Corp. 123,524 3,342,806
EMC Corp./Mass<F*> 74,025 8,087,231
Gateway Inc.<F*> 23,000 1,657,426
IBM Corp. 131,080 14,156,640
Lexmark International
Group<F*> 9,300 841,650
Milacron Inc. 2,600 39,975
Oracle Corp.<F*> 103,543 11,603,236
Pitney Bowes Inc. 19,300 932,422
Unisys Corp.<F*> 22,500 718,583
Xerox Corp. 48,250 1,094,648
------------
44,858,617
------------
Business Services (12.10%)
Adaptec Inc.<F*> 7,400 369,075
Adobe Systems Inc. 8,800 591,800
Automatic Data Processing
Inc. 45,400 2,445,925
BMC Software Inc.<F*> 17,600 1,406,891
Cabletron Systems<F*> 13,100 340,600
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Business Services (continued)
Cendant Corp.<F*> 51,642 $ 1,371,715
Ceridian Corp.<F*> 10,500 226,401
Cisco Systems Inc.<F*> 237,800 25,474,325
Clear Channel
Communications<F*> 24,600 2,195,550
Computer Assoc. Intl. 39,200 2,741,530
Compuware Corp.<F*> 26,000 968,500
Dell Computers<F*> 184,700 9,419,700
Deluxe Corp. 5,300 145,416
Equifax Inc. 10,200 240,332
First Data Corp. 30,500 1,504,016
General Instrument Corp.<F*> 12,700 1,079,500
Ims Health Inc. 22,300 606,270
Manor Care Inc.<F*> 7,400 118,400
Microsoft Corp.<F*> 375,100 43,792,925
Millipore Corp. 3,300 127,463
National Service Inds. Inc. 2,900 85,550
Novell Inc.<F*> 24,200 966,475
Peoplesoft Inc.<F*> 17,800 379,354
Quintiles Transnational
Corp.<F*> 8,300 155,103
Sun Microsystems Inc.<F*> 113,600 8,796,843
Tellabs<F*> 29,300 1,880,679
Thermo Electron<F*> 11,500 172,500
3Com Corp.<F*> 25,100 1,179,700
------------
108,782,538
------------
Chemicals (1.89%)
Air Products & Chemicals Inc. 16,600 557,129
Dow Chemical Co. 15,937 2,129,582
E I Du Pont De Nemours & Co. 75,917 5,001,032
Eastman Chemical 5,675 270,624
Ecolab, Inc. 9,400 367,775
Great Lakes Chemical 4,200 160,385
Hercules Inc. 7,700 214,638
Honeywell International Inc. 57,525 3,318,445
Mallinckrodt Inc. 5,000 159,060
Monsanto 46,150 1,644,094
Owens Corning 3,900 75,317
PPG Industries Inc. 12,600 788,281
Rohm & Haas Co. 15,871 645,743
Sigma-Aldrich 7,300 219,452
Teredyne<F*> 12,400 818,400
Union Carbide Corp. 9,700 647,475
------------
17,017,432
------------
Commercial Banking (6.06%)
Amsouth Bancorporation 28,350 547,495
BB&T Corp. 24,000 657,000
Bank Of America Corp. 124,145 6,230,465
(continued)
7
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Banking (continued)
Bank of New York 53,500 $ 2,140,000
Banc One Corp. 83,313 2,671,181
Chase Manhattan Corp. (new) 59,924 4,655,316
Citigroup Inc. 245,070 13,616,579
Comerica Inc. 11,400 532,232
Fifth Third Banc 22,500 1,650,938
First Union Corp. 71,792 2,355,639
Firstar Corporation 71,246 1,505,072
Huntington Bancshares 16,642 397,328
Keycorp 32,500 719,063
Mellon Financial Corp. 37,000 1,260,294
J P Morgan & Co. Inc. 12,600 1,595,475
National City Corp. 44,800 1,061,178
Northern Trust Corporation 16,200 858,600
Old Kent Financial Corp. 8,500 300,688
PNC Financial Corp. 21,400 952,300
Regions Financial Corp. 15,900 399,488
Southtrust Corp. 12,200 461,306
Summit Bancorporation 12,700 388,938
Suntrust Banks Inc. 23,300 1,603,320
Synovus Financial Corp. 20,300 403,462
US Bancorp 52,819 1,257,725
Union Planters Corp. 10,200 402,257
Wachovia Corp. 14,800 1,006,400
Wells Fargo & Co. 119,330 4,825,346
------------
54,455,085
------------
Construction (1.47%)
Centex Corp. 4,300 106,154
Fluor Corp. 5,500 252,313
Home Depot Inc. 167,400 11,477,279
Huttig Building Products
Inc.<F*> 1 5
Masco Corp. 32,400 822,150
Pulte Home Corp. 3,100 69,750
Stanley Works 6,500 195,812
Vulcan Materials Co. 7,300 291,540
------------
13,215,003
------------
Consumer Durables (0.12%)
Black & Decker Corp. 6,300 329,175
Maytag Corp. 6,100 292,800
Snap-On Inc. 4,200 111,560
Whirlpool Corp. 5,400 351,335
------------
1,084,870
------------
Containers (0.10%)
Crown Cork & Seal 8,800 196,900
Newell Rubbermaid Inc. 20,521 595,109
Pactiv Corp.<F*> 12,400 131,750
------------
923,759
------------
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Domestic Oil (0.80%)
Amerada Hess Corp. 6,600 $ 374,550
Apache 8,300 306,577
Ashland Inc. 5,200 171,272
Arco 23,475 2,030,588
Conoco Inc. - Class B 45,500 1,131,813
Kerr-McGee Corp. 6,267 388,554
Phillips Petroleum Co. 18,400 864,800
Rowan Companies Inc.<F*> 6,000 130,122
Sunoco Inc. 6,500 152,750
Tosco Corp. 10,400 282,745
USX-Marathon Group 22,559 556,914
Union Pacific Resources Group 18,274 232,994
Unocal Corp. 17,600 590,690
------------
7,214,369
------------
Drugs & Medicines (6.88%)
Abbott Laboratories 111,700 4,056,050
Allergan Inc. 9,600 477,600
Alza Corp.<F*> 7,400 256,225
American Home Products Corp. 94,900 3,742,571
Bard C R Inc. 3,700 196,100
Bausch & Lomb Inc. 4,200 287,435
Baxter International 21,200 1,331,614
Becton Dickinson & Co. 18,200 486,850
Boston Scientific Corp.<F*> 30,100 658,438
Columbia HCA/Healthcare 40,886 1,198,450
Guidant Corp. 22,300 1,048,100
Healthsouth Corp.<F*> 28,000 150,500
Humana Inc.<F*> 12,100 99,063
Johnson & Johnson 101,100 9,414,938
Eli Lilly & Co. 79,300 5,273,450
Merck & Co. Inc. 169,950 11,397,187
Pharmacia-Upjohn Inc. 37,705 1,696,725
Pfizer Inc. 281,400 9,127,772
St. Jude Medical<F*> 6,100 187,191
Schering-Plough Corp. 106,800 4,505,572
Tenet Healthcare<F*> 22,600 531,100
Warner-Lambert Co. 62,400 5,112,869
Watson Pharmaceuticals
Inc.<F*> 7,000 250,684
Wellpoint Health Networks<F*> 4,600 303,310
------------
61,789,794
------------
Electronics (9.95%)
ADC Telecommunications<F*> 10,900 790,926
Advanced Micro Devices
Inc.<F*> 10,700 309,626
Andrew Corp.<F*> 5,900 111,728
Applied Materials Inc.<F*> 27,500 3,483,893
Citrix Systems Inc.<F*> 6,500 799,500
Emerson Electric Co. 31,600 1,813,050
(continued)
8
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Electronics (continued)
Hewlett-Packard Co. 74,100 $ 8,442,732
Intel Corp. 242,900 19,993,585
KLA-Tencor Corp.<F*> 6,600 735,075
LSI Logic Corp.<F*> 10,800 729,000
Medtronic Inc. 86,900 3,166,375
Micron Technology Inc.<F*> 19,600 1,523,900
Molex Inc. 11,400 646,231
Motorola Inc. 44,300 6,523,175
Network Appliance Inc.<F*> 10,900 905,376
Nortel Networks Corporation 97,140 9,811,140
PE Corp. - PE Biosystems
Group 7,500 902,340
Parametric Technology
Corp.<F*> 19,500 527,709
Perkinelmer Inc. 3,300 137,567
Qualcomm Inc.<F*> 48,000 8,454,000
Raytheon Co. 24,600 653,425
Seagate Technology Inc.<F*> 15,100 703,085
Silicon Graphics<F*> 13,300 130,500
Solectron Corp.<F*> 21,300 2,026,163
Texas Instruments Inc. 58,300 5,647,813
Thomas & Betts Corp. 4,200 133,875
Williams Companies Inc. 31,600 965,759
Xilinx<F*> 23,200 1,054,858
Yahoo! Inc.<F*> 19,200 8,307,590
------------
89,429,996
------------
Energy & Utilities (1.13%)
American Electric Power Co.
Inc. 14,100 452,963
Burlington Resources 15,792 522,115
CMS Energy Corp. 8,400 261,970
Central & South West Corp. 15,400 308,000
Coastal Corp. 15,500 549,274
Columbia Energy Group 5,950 376,338
Consolidated Edison Inc. 16,100 555,450
Consolidated Natural Gas Co. 6,971 452,676
Constellation Energy Group
Inc. 10,800 313,200
Dominion Resources Inc. 13,900 545,575
Edison International 25,200 659,912
Enron Corp. 52,000 2,307,500
Entergy Corp. 17,900 460,925
FPL Group Inc. 13,000 556,556
New Century Energies Inc. 8,400 255,150
Niagara Mohawk Holdings
Inc.<F*> 13,600 189,543
Northern States Power Co.
(Minn) 11,200 218,400
Reliant Energy Inc. 21,418 489,937
Texas Utilities Co. 20,105 714,974
------------
10,190,458
------------
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Energy Raw Materials (0.54%)
Baker Hughes Inc. 23,910 $ 503,592
Halliburton Co. 32,100 1,292,025
McDermott Intl. 4,300 38,966
Nacco Industries Inc. 600 33,337
Occidental Petroleum Corp. 26,700 577,388
Oneok 2,300 57,788
Peoples Energy Corp. 2,600 87,100
Schlumberger 40,000 2,250,000
------------
4,840,196
------------
Finance (Non-Banking) (2.69%)
Associates First Capital
Corp. 52,906 1,451,582
Bear Stearns Companies Inc. 8,620 368,505
H & R Block Inc. 7,100 310,625
Capital One Financial Corp. 14,300 689,074
Chubb Corp. 12,800 720,794
Cincinnati Financial Corp. 11,900 371,125
Countrywide Credit 8,200 207,050
Fleet Boston Financial Corp. 66,548 2,316,669
Franklin Resources Inc. 18,300 586,735
Golden West Financial 11,700 391,950
Lehman Brothers Holding Inc. 8,700 736,777
MBIA Inc. 7,200 380,246
MBNA Corp. 58,225 1,586,631
Morgan Stanley, Dean Witter &
Co. 40,494 5,780,519
Paine Webber Group Inc. 10,400 403,645
Paychex Inc. 17,900 716,000
T. Rowe Price Assoc. 8,700 321,352
Progressive Corp. 5,300 387,563
Providian Financial Corp. 10,350 942,492
Republic New York Corp. 7,600 547,200
SLM Holding Corp. 11,540 487,565
Safeco Corp. 9,400 233,825
Schwab (Charles) Corp. 59,550 2,285,231
State Street Corp. 11,600 847,518
Washington Mutual Inc. 41,969 1,091,194
------------
24,161,867
------------
Food & Agriculture (2.93%)
Archer-Daniels-Midland Co. 44,155 538,117
Bestfoods 20,300 1,067,009
Campbell Soup Co. 31,100 1,203,166
Coca-Cola Company 179,600 10,461,700
Coca-Cola Enterprises 30,900 621,863
Conagra Inc. 35,700 805,462
Adolph Coors 2,700 141,750
Darden Restaurants 9,500 172,188
General Mills Inc. 22,100 790,075
(continued)
9
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Food & Agriculture (continued)
H J Heinz Co. 26,050 $ 1,037,102
Hershey Foods Corp. 10,100 479,750
Kellogg Co. 29,400 905,873
Pepsico Inc. 105,800 3,729,450
Quaker Oats Co. 9,700 636,563
Ralston Purina Co. 23,500 655,062
Sara Lee Corp. 66,000 1,456,092
Sysco Corp. 23,900 945,532
Wm. Wrigley Jr. Co. 8,400 696,671
------------
26,343,425
------------
Gold (0.10%)
Barrick Gold Corp. 28,600 505,848
Homestake Mining Co. 18,900 147,647
Placer Dome Inc. 23,600 253,700
------------
907,195
------------
<CAPTION>
Government & State Agency (0.78%)
<S> <C> <C>
Federal Home Loan Mortgage
Corp. 50,500 2,376,631
Federal National Mortgage
Association 74,500 4,651,557
------------
7,028,188
------------
Industrial Miscellaneous (3.92%)
Allied Waste Industries
Inc.<F*> 13,700 120,724
America Online Inc.<F*> 162,500 12,258,513
American Greetings 4,600 108,675
Amgen<F*> 74,300 4,462,607
Anadarko Petroleum Co. 9,200 313,950
Armstrong World Industries
Inc. 2,900 96,788
Autodesk Inc. 4,400 148,500
Avery Dennison Corp. 8,200 597,575
Ball Corp. 2,200 86,625
Biomet Inc. 8,200 328,000
Briggs & Stratton 1,700 91,163
Circuit City Stores Inc. 14,800 666,918
Computer Sciences<F*> 12,100 1,144,963
Comverse Technology Inc.<F*> 5,200 752,700
Cooper Tire & Rubber 5,500 85,591
Corning Inc. 17,800 2,295,079
Cummins Engine 3,000 144,936
Danaher Corporation 10,300 496,975
Dun & Bradstreet Corp. (new) 11,675 344,412
Electronic Data Systems Corp. 34,200 2,289,245
Engelhard Corp. 9,050 170,819
Fleetwood Enterprises 2,300 47,438
Foster Wheeler 2,900 25,738
Freeport McMoran<F*> 11,800 249,275
W.R. Grace & Co.<F*> 5,200 72,150
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Industrial Miscellaneous (continued)
<S> <C> <C>
Harrahs Entertainment,
Inc.<F*> 9,300 $ 245,864
Helmerich & Payne 3,500 76,342
Ikon Office Solutions Inc. 10,800 73,570
Leggett & Platt 14,200 304,404
Loews Corp. 7,700 467,290
Lowes Companies Inc. 27,800 1,661,050
Mattel Inc. 30,487 400,142
McKesson HBOC Inc. 20,414 460,580
Mead Corp. 7,500 325,778
National Semiconductor
Corp.<F*> 12,500 535,150
Northrop Corp. 5,100 275,716
Praxair 11,600 583,618
Rite Aid Corp. 18,800 210,315
Ryder System Inc. 4,600 112,410
Sealed Air Corporation<F*> 6,033 312,581
Service Corp. International 19,700 136,659
Shared Medical Systems Corp. 2,000 101,874
Sherwin-Williams 12,000 252,000
Tektronix Inc. 3,400 132,174
Timken Co. 4,500 91,967
Waste Management Inc. 45,035 774,017
Transocean Sedco Forex<F*> 7,760 261,415
------------
35,194,275
------------
Insurance (2.50%)
Aflac Inc. 19,300 910,709
Aetna Inc. 10,922 609,578
Allstate Insurance 58,496 1,403,904
American International Group
Inc. 112,588 12,173,578
Aon Corp. 18,675 747,000
Cigna Corp. 13,500 1,087,587
Jefferson Pilot Corp. 7,650 522,113
Kaufman & Broad Homebuilders 3,400 82,236
Lincoln National Corp. 14,200 568,000
MGIC Investment Corp. 7,700 463,440
Marsh & McLennan Cos. Inc. 19,450 1,861,112
St. Paul Companies Inc. 16,500 555,835
Torchmark Corp. 9,500 276,089
United Healthcare 12,300 653,437
Unumprovident Corp. 17,400 557,879
------------
22,472,497
------------
International Oil (4.00%)
Chevron Corp. 47,700 4,132,014
Exxon Mobile Corporation 251,040 20,224,284
Royal Dutch Petroleum Co. 155,900 9,422,128
(continued)
10
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
International Oil (continued)
Texaco Inc. 40,200 $ 2,183,342
------------
35,961,768
------------
Liquor (0.46%)
Anheuser-Busch Companies Inc. 33,850 2,399,118
Brown Forman Corp. 'B' 5,000 286,250
Seagram Co. Ltd. 31,500 1,415,516
------------
4,100,884
------------
Media (2.72%)
CBS Corp.<F*> 55,412 3,542,877
Comcast Corp. 54,600 2,760,685
R R Donnelley & Sons Co. 9,100 225,789
Dow Jones & Co. 6,500 442,000
Gannett Co. Inc. 20,300 1,655,709
Harcourt General Inc. 5,200 209,300
Interpublic Group Co. 20,400 1,176,815
Knight Ridder Inc. 6,100 362,950
McGraw-Hill Inc. 14,300 881,237
Meredith Corp. 3,700 154,241
New York Times Co. 12,400 609,150
Omnicom Group 12,900 1,290,000
Time Warner Inc. 93,560 6,777,206
Times Mirror Co. 4,400 294,800
Tribune Co. 17,300 952,573
Viacom Class B<F*> 50,700 3,064,156
------------
24,399,488
------------
<CAPTION>
Miscellaneous & Conglomerates (0.51%)
<S> <C> <C>
Hartford Financial Services
Group 16,100 762,738
ITT Industries Inc. 6,400 213,997
Marriott International Class A 18,050 569,694
Minnesota Mining &
Manufacturing 29,150 2,853,056
Pinnacle West Capital 6,100 186,428
------------
4,585,913
------------
Miscellaneous Finance (1.15%)
American Express Co. 32,600 5,419,750
American General Corp. 18,026 1,367,723
Household International Inc. 34,153 1,272,199
Merrill Lynch & Co. Inc. 27,000 2,254,500
------------
10,314,172
------------
Motor Vehicles (1.07%)
Dana Corp. 11,887 355,860
Eaton Corp. 5,400 392,175
Ford Motor Co. 87,800 4,691,769
General Motors 46,550 3,383,580
Genuine Parts Co. 12,925 320,695
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Motor Vehicles (continued)
TRW Inc. 8,800 $ 457,046
------------
9,601,125
------------
<CAPTION>
Non-Durables & Entertainment (0.25%)
<S> <C> <C>
Brunswick Corp. 6,600 146,850
Costco Wholesale Corpora-
tion<F*> 16,103 1,469,399
Hasbro Inc. 14,050 267,821
Mirage Resorts Inc.<F*> 14,000 214,368
Wendy's International Inc. 8,675 178,922
------------
2,277,360
------------
Non-Ferrous Metals (0.47%)
Alcan Aluminum Limited 15,925 655,903
Alcoa Inc. 26,700 2,216,100
Inco Ltd.<F*> 13,900 326,650
Newmont Mining Corp. 12,177 298,337
Phelps Dodge Corp. 5,917 397,178
Reynolds Metals Co. 4,600 352,475
------------
4,246,643
------------
<CAPTION>
Optical Photographic Equipment (0.18%)
<S> <C> <C>
Eastman Kodak Co. 23,000 1,523,750
Polaroid Corp. 3,145 59,164
------------
1,582,914
------------
Paper & Forest Products (0.93%)
Bemis Co. Inc. 3,800 132,524
Boise Cascade Corp. 4,166 168,723
Champion International 7,000 433,559
Fort James Corp. 15,700 429,788
Georgia-Pacific Corp. 12,400 629,300
International Paper Co. 30,102 1,698,867
Kimberly-Clark Corp. 39,572 2,582,072
Louisiana Pacific Corp. 7,700 109,725
Potlatch Corp. 2,100 93,713
Temple Inland Inc. 4,100 270,341
Westvaco Corp. 7,225 235,716
Weyerhaeuser Co. 17,050 1,224,395
Willamette Industries 8,100 376,140
------------
8,384,863
------------
Producer Goods (5.53%)
Caterpillar Inc. 25,800 1,214,200
Conseco Inc. 23,723 424,049
Cooper Industries Inc. 6,800 274,972
Deere & Co. 17,000 737,375
Delphi Automotive Systems 40,983 645,482
Dover Corp. 14,800 671,550
FMC Corp.<F*> 2,200 126,086
General Electric Corp. 238,500 36,907,875
(continued)
11
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Producer Goods (continued)
W W Grainger Inc. 6,806 $ 325,408
Illinois Tool Works Inc. 21,900 1,479,608
Ingersoll-Rand Co. 11,900 655,238
Johnson Controls Inc. 6,200 352,625
Navistar Intl Corp.<F*> 4,600 217,924
Owens-Illinois Inc.<F*> 10,900 273,176
Pall Corp. 9,000 194,058
Parker Hannifin Corp. 8,125 416,910
Tyco International Ltd. 122,753 4,772,059
------------
49,688,595
------------
Railroads & Shipping (0.36%)
Burlington Northern Santa Fe 33,124 803,257
CSX Corp. 15,800 495,725
Kansas City Southern Inds 8,000 597,000
Norfolk Southern Corp. 27,650 566,825
Union Pacific Corp. 18,100 789,613
------------
3,252,420
------------
Retail (5.42%)
Albertsons Inc. 30,800 993,300
Autozone Inc.<F*> 10,500 339,276
Bed Bath & Beyond Inc.<F*> 10,100 350,975
Best Buy Inc.<F*> 14,900 747,786
Cardinal Health Inc. 20,400 976,650
Consolidated Stores
Corporation<F*> 8,025 130,406
Dayton-Hudson Corp. 32,000 2,349,984
Dillard's Inc. 7,800 157,459
Dollar General 19,318 439,485
Federated Department
Stores<F*> 15,300 773,599
Gap Inc. 62,187 2,860,602
Great Atlantic & Pacific Tea
Co. 2,800 78,050
K Mart Corp.<F*> 35,800 360,220
Kohl's Corp. (Wisconsin)<F*> 11,900 859,025
Kroger Co.<F*> 60,400 1,140,050
Limited Inc. 15,600 675,667
Longs Drug Store 2,800 72,274
May Department Stores Co. 24,276 782,901
McDonald's Corp. 98,400 3,966,700
Nordstrom Inc. 10,000 261,870
Office Depot Inc.<F*> 23,900 261,393
J C Penney Co. Inc. 18,900 376,809
Pep Boys 3,800 34,675
Safeway Inc.<F*> 37,000 1,315,794
Sears Roebuck & Co. 27,400 833,974
Staples Inc.<F*> 33,700 699,275
Supervalu Inc. 10,100 202,000
TJX Cos. Inc. 22,500 459,832
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Retail (continued)
Tandy Corp. 14,100 $ 693,537
Toys 'R' Us<F*> 17,712 253,494
Tricon Global Restaurants<F*> 11,160 431,055
Tupperware Inc. 4,100 69,442
Wal-Mart Stores Inc. 323,500 22,361,938
Walgreen Co. 72,900 2,132,325
Winn-Dixie Stores Inc. 10,800 258,520
------------
48,700,342
------------
Soaps & Cosmetics (3.32%)
Alberto Culver Co. 'B' 4,000 103,248
Avon Products Inc. 17,600 580,800
Bristol-Myers Squibb Co. 144,160 9,253,198
Clorox Co. 17,200 866,450
Colgate-Palmolive Co. 42,400 2,756,000
Gillette Co. 78,000 3,212,586
International Flavors &
Fragrances 7,600 286,900
Procter & Gamble Co. 95,600 10,474,127
Unilever NV 41,571 2,263,001
------------
29,796,310
------------
Steel (0.10%)
Allegheny Technologies Inc. 6,800 152,572
Bethlehem Steel Corp.<F*> 9,500 79,562
Nucor Corp. 6,300 345,315
USX US Steel 6,371 210,244
Worthington Industries, Inc. 6,400 105,997
------------
893,690
------------
Telephone (10.23%)
A T & T Corp. 232,266 11,787,500
Alltel 22,800 1,885,264
Bell Atlantic Corp. 112,840 6,946,656
Bellsouth Corp. 136,788 6,403,320
Century Tel. Inc. 10,200 483,225
GTE Corp. 70,700 4,988,733
Lucent Technologies 227,729 17,036,862
MCI Worldcom Inc.<F*> 206,319 10,947,698
Mediaone Inc.<F*> 44,464 3,415,369
Nextel Communications
Inc.-A<F*> 26,400 2,722,500
SBC Communications Inc. 247,978 12,088,928
Scientific Atlanta 5,700 317,063
Sprint Corp.<F*> 63,400 4,267,580
Sprint PCS Group 31,350 3,213,375
US West Inc. 36,707 2,642,904
Global Crossing Ltd.<F*> 55,130 2,756,500
------------
91,903,477
------------
(continued)
12
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Tires Rubber Goods (0.04%)
Goodyear Tire & Rubber Co. 11,372 $ 320,543
------------
Tobacco (0.55%)
Fortune Brands Inc. 11,900 393,438
Nabisco Group Holdings 23,700 251,812
Philip Morris Companies Inc. 171,950 3,987,005
UST Inc. 12,400 312,319
------------
4,944,574
------------
Travel & Recreation (0.75%)
Carnival Cruise Lines Class A 44,800 2,141,978
Walt Disney Productions 149,900 4,384,575
Hilton Hotels Corp. 26,800 257,950
------------
6,784,503
------------
Trucking & Freight (0.04%)
Eastern Enterprises 2,000 114,874
Paccar Inc. 5,700 252,578
------------
367,452
------------
<CAPTION>
Utilities, Electrical & Gas (1.03%)
<S> <C> <C>
AES Corp.<F*> 15,000 1,121,250
Ameren Corp. 10,000 327,500
Carolina Power & Light Co. 11,600 353,069
Cinergy Corp. 11,554 278,740
DTE Energy Co. 10,500 329,438
Duke Energy Corp. 26,541 1,330,368
El Paso Energy Corp.<F*> 16,600 644,279
Firstenergy Corp. 16,900 383,410
Florida Progress Corp. 7,100 300,415
GPU Inc. 8,900 266,439
Nicor Inc. 3,400 110,500
Peco Energy Co. 13,500 469,125
P G & E Corp. 27,900 571,950
P P & L Resources Inc. 10,400 237,900
Public Service Enterprise
Group 15,850 551,770
Sempra Energy 17,422 302,707
Southern Co. 48,900 1,149,150
Unicom Corp. 15,800 529,300
------------
9,257,310
------------
TOTAL COMMON STOCK (99.61%)
(COST $457,283,860) 895,166,445
------------
<CAPTION>
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.32%)
Merrill Lynch & Co,
5.64%, due 1/20/2000 $1,600,000 $ 1,595,253
Dealers Capital Access
Trust, 5.51%, due
1/6/2000 1,285,000 1,284,019
------------
2,879,272
------------
<S> <C>
TOTAL SHORT TERM SECURITIES (0.32%)
(AMORTIZED COST $2,879,272) 2,879,272
------------
TOTAL INVESTMENTS (99.93%)
(AMORTIZED COST $460,163,132) 898,045,717
Other net assets (0.07%) 642,990
------------
TOTAL NET ASSETS (100.00%) $898,688,707
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
13
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Money Market Fund produced a net return of 5.2% in 1999. Once again, the
fund was ranked #1 for its net return in 1999 and for the last five years when
compared with over 100 other variable annuity money market funds of similar
size according to Lipper, Inc., a nationally recognized analytical firm.
In 1999, the Federal Reserve pushed up short-term rates three times. This
reversed three moves to lower rates when global and domestic financial markets
were suffering from an extreme lack of liquidity. Also, this action reflected
the Fed's views that economic growth must be slowed to prevent the lowest
unemployment rate in a generation from falling further and creating
inflationary pressure in the market. Although the Fed's November move was
accompanied by a neutral bias going forward, continued growth and higher oil
prices increase the probability of additional monetary tightening early in
2000. The average maturity of the fund was shortened to take advantage of Y2K
concerns, inflated year-end rates and further rate hikes by the Fed.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 5.20% 5.60% 5.35% 5.93%
</TABLE>
The fund's performance reflects administrative and management charges.
Past performance is no assurance of future results.
14
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Short term securities $255,781,563
------------
Total investments 255,781,563
Cash 3,026
Interest receivable 398,747
------------
Total assets 256,183,336
------------
LIABILITIES:
Payable to Conning Asset Management
Company 26,665
Payable to General American Life
Insurance Company 17,066
------------
Total liabilities 43,731
------------
Total net assets $256,139,605
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 12,647,443
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 20.25
TOTAL AMORTIZED COST OF INVESTMENTS $255,777,381
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Interest $13,623,154
-----------
Total investment income 13,623,154
-----------
EXPENSES:
Investment management charge 322,117
Administrative charge 206,154
-----------
Total expenses 528,271
-----------
Net investment income 13,094,883
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $13,094,883
===========
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
------------ ------------
1999 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income $ 13,094,883 $ 11,298,523
------------ ------------
Net increase in net assets from operations 13,094,883 11,298,523
Capital share transactions 7,998,893 49,176,804
------------ ------------
Net increase in net assets 21,093,776 60,475,327
Net assets, beginning of year 235,045,829 174,570,502
------------ ------------
Net assets, end of period $256,139,605 $235,045,829
============ ============
</TABLE>
See accompanying notes to the financial statements.
15
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------
1999 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 1.00 1.02 0.99 0.90 0.92
-------- -------- -------- -------- -------
Net asset value, end of period $ 20.25 $ 19.25 $ 18.23 $ 17.24 $ 16.34
======== ======== ======== ======== =======
Total return <F2> 5.20% 5.62% 5.71% 5.51% 5.96%
Net assets, end of period (in thousands) $256,140 $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> 5.08% 5.45% 5.60% 5.37% 5.78%
Portfolio turnover rate <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> -- -- -- -- --
<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.
</TABLE>
See accompanying notes to the financial statements.
16
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER
Asset Backed (13.91%)
Grand Funding<F*> $ 3,473,000 6.05 01/05/00 $ 3,470,685
Grand Funding<F*> 2,925,000 5.77 01/19/00 2,916,591
Grand Funding<F*> 2,043,000 6.21 01/20/00 2,036,369
Kitty Hawk Funding Corp.<F*> 4,026,000 6.26 01/21/00 4,012,133
MPF Limited<F*> 330,000 7.12 01/12/00 329,284
MPF Limited<F*> 5,000,000 6.17 01/13/00 4,989,800
MPF Limited<F*> 5,000,000 6.32 01/14/00 4,988,679
Pegasus Three Ltd.<F*> 3,150,000 6.18 01/13/00 3,143,574
Pegasus Two Ltd.<F*> 5,000,000 6.18 01/13/00 4,989,800
Pegasus Two Ltd.<F*> 2,000,000 6.16 01/21/00 1,993,222
Pooled Accounts Receivable 1,075,000 6.31 01/07/00 1,073,875
Pooled Accounts Receivable 1,700,000 6.32 01/10/00 1,697,335
------------
35,641,347
------------
Banking (11.16%)
Forrestal Funding Master Trust<F*> 8,396,000 6.44 01/14/00 8,376,596
Forrestal Funding Master Trust<F*> 1,239,000 6.46 01/14/00 1,236,128
Forrestal Funding Master Trust<F*> 492,000 6.22 03/06/00 486,839
Moat Funding<F*> 2,800,000 6.10 01/24/00 2,789,418
Moat Funding<F*> 3,750,000 6.77 01/26/00 3,732,500
Zions Bancorporation 5,000,000 6.21 01/20/00 4,983,797
Zions Bancorporation 7,000,000 5.98 01/28/00 6,968,763
------------
28,574,041
------------
Bond Insurance (1.08%)
Cooperative Association of Tractor Dealers "A" 1,650,000 6.26 01/28/00 1,642,328
Cooperative Association of Tractor Dealers "A" 550,000 6.20 03/17/00 543,346
Cooperative Association of Tractor Dealers "A" 100,000 6.23 04/14/00 98,331
Cooperative Association of Tractor Dealers "B" 300,000 6.01 01/06/00 299,750
Cooperative Association of Tractor Dealers "B" 187,000 6.26 05/26/00 182,514
------------
2,766,269
------------
Broker Dealer (1.56%)
Merrill Lynch & Co. 4,000,000 5.64 01/20/00 3,988,136
------------
Business Credit Institutional (2.80%)
Fairway Finance<F*> 500,000 7.07 01/03/00 499,804
Fairway Finance<F*> 361,000 6.26 03/09/00 357,034
Sweetwater Capital Corp.<F*> 4,023,000 6.55 01/14/00 4,013,543
Sweetwater Capital Corp.<F*> 551,000 5.94 02/03/00 548,020
Sweetwater Capital Corp.<F*> 348,000 6.62 02/18/00 344,956
Sweetwater Capital Corp.<F*> 706,000 6.53 02/24/00 699,159
Sweetwater Capital Corp.<F*> 734,000 6.21 06/13/00 714,189
------------
7,176,705
------------
Cosmetics (0.39%)
Gilette Co. 1,000,000 5.91 01/07/00 999,017
------------
Electronics (1.94%)
Hitachi Credit America Corp. 5,000,000 6.22 01/26/00 4,979,061
------------
(continued)
17
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Financial Services (0.31%)
General Electric Capital Corp. $ 300,000 5.82 01/18/00 $ 299,178
General Electric Capital Corp. 500,000 6.29 04/11/00 491,758
------------
790,936
------------
Machinery (4.53%)
Dealers Capital Access Trust 10,000,000 7.17 01/06/00 9,990,069
Dealers Capital Access Trust 1,625,000 7.27 01/06/00 1,623,364
------------
11,613,433
------------
Miscellaneous Business Credit (18.05%)
Barton Capital Corp.<F*> 825,000 6.38 01/07/00 824,128
Barton Capital Corp.<F*> 3,500,000 6.06 01/18/00 3,490,053
Compass Securitization<F*> 5,000,000 6.09 01/21/00 4,982,738
Compass Securitization<F*> 4,700,000 6.26 01/28/00 4,678,145
Eagle Funding Cap. Corp.<F*> 613,000 7.03 01/10/00 611,927
Eagle Funding Cap. Corp.<F*> 3,407,000 6.27 01/14/00 3,399,311
Lexington Parker Capital<F*> 3,200,000 6.55 02/08/00 3,178,044
Sheffield Receivables<F*> 10,800,000 11.01 01/03/00 10,793,400
Thames Asset Global Securitization<F*> 2,053,000 6.09 01/18/00 2,047,165
Thames Asset Global Securitization<F*> 1,539,000 6.33 01/24/00 1,532,835
Tulip Funding<F*> 1,500,000 6.04 01/14/00 1,496,674
Windmill Funding Corp.<F*> 5,000,000 6.08 01/06/00 4,995,806
Windmill Funding Corp.<F*> 700,000 7.03 01/07/00 699,182
Windmill Funding Corp.<F*> 3,500,000 6.05 01/07/00 3,496,327
------------
46,225,735
------------
Miscellaneous Personal Credit (9.55%)
Falcon Asset Securitization<F*> 10,000,000 6.83 01/07/00 9,988,667
Market Street Funding<F*> 4,500,000 7.01 01/07/00 4,494,750
Market Street Funding<F*> 4,900,000 6.75 01/13/00 4,889,024
Old Line Funding<F*> 505,000 7.03 01/03/00 504,803
Old Line Funding<F*> 650,000 6.39 01/07/00 649,311
Old Line Funding<F*> 2,450,000 6.45 01/13/00 2,444,765
Thunder Bay Funding<F*> 1,494,000 6.48 01/07/00 1,492,394
------------
24,463,714
------------
Mortgage Banking (3.99%)
Cooper River Funding 10,000,000 5.53 01/18/00 9,968,361
Cooper River Funding 243,000 7.13 01/18/00 242,185
------------
10,210,546
------------
Personal Credit Institutional (10.32%)
Check Point Charlie<F*> 5,000,000 6.37 01/14/00 4,988,589
Check Point Charlie<F*> 1,250,000 6.55 01/28/00 1,243,906
Check Point Charlie<F*> 1,067,000 6.53 02/04/00 1,060,480
Check Point Charlie<F*> 1,675,000 6.10 01/26/00 1,667,986
Monte Rosa Capital Corp. 391,000 6.02 03/13/00 386,446
Seven Hills Funding<F*> 5,000,000 6.06 01/19/00 4,984,960
Seven Hills Funding<F*> 5,000,000 6.11 01/21/00 4,983,194
World Omni<F*> 7,118,000 6.73 01/07/00 7,110,051
------------
26,425,612
------------
(continued)
18
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (8.60%)
Centennial Energy Holdings<F*> $ 500,000 6.99 01/20/00 $ 498,166
Centennial Energy Holdings<F*> 500,000 6.99 01/21/00 498,069
Centennial Energy Holdings<F*> 4,000,000 6.48 01/07/00 3,995,700
Centennial Energy Holdings<F*> 1,100,000 6.38 01/07/00 1,098,836
Centennial Energy Holdings<F*> 5,000,000 6.94 01/14/00 4,987,542
Centennial Energy Holdings<F*> 250,000 6.38 01/27/00 248,853
Centennial Energy Holdings<F*> 300,000 6.38 01/28/00 298,571
Congetrix Energy Inc. 420,000 6.54 01/31/00 417,725
Indianapolis Power & Light 1,300,000 5.76 01/12/00 1,297,716
Progress Capital Holdings, Inc. 150,000 6.05 01/11/00 149,750
Progress Capital Holdings, Inc. 5,000,000 6.10 01/11/00 4,991,597
Progress Capital Holdings, Inc. 3,575,000 6.31 02/15/00 3,547,249
------------
22,029,774
------------
TOTAL COMMERCIAL PAPER (88.19%) (AMORTIZED COST
$225,882,432) 225,884,326
------------
FLOATING RATE NOTES
Goldman Sachs 5,000,000 6.30 01/26/00 5,000,000
GTE Corp. 9,000,000 6.13 04/11/00 8,997,237
Racers Trust - Zurich Capital 8,500,000 6.56 01/15/00 8,500,000
------------
TOTAL FLOATING RATE NOTES (8.78%) (AMORTIZED COST
$22,494,949) 22,497,237
------------
TIME DEPOSITS
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
Banco Espirito Santo Euro 3,000,000 5.72 07/19/00 3,000,000
------------
TOTAL TIME DEPOSITS (2.89%) (AMORTIZED COST
$7,400,000) 7,400,000
------------
TOTAL NET INVESTMENTS (99.86%) (AMORTIZED COST
$255,777,381) 255,781,563
Other net assets (0.14%) 358,042
------------
TOTAL NET INVESTMENTS (100.00%) $256,139,605
============
<FN>
<F*> Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933, 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.
</TABLE>
See accompanying notes to the financial statements.
19
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
A year of inflation jitters, interest rate hikes by the Federal Reserve, and
concerns surrounding year 2000 issues sent bond prices downward in 1999. The
bond market suffered its worst year since 1994 and the second worst since
1973. The Fed raised interest rates three times during the year. Tight labor
markets and little evidence of slowing economic growth contributed to the
Fed's decision to raise rates. Treasury prices took the biggest tumble. The
30-year Treasury yield, which moves in the opposite direction of its price,
started at 5.10% and climbed to 6.48% by year-end. Corporate bonds also
stumbled. For the year, the average 30-year Treasury Bond price declined 2.56%
and the average corporate bond price dropped 1.96%. For corporates,
improvement in yield spreads helped offset a portion of the negative impact of
higher interest rates.
In 2000, we see Treasury returns improving, due to the government's budget
surplus and the expectation of a debt buyback program. The shrinking supply of
Treasuries will help push prices upward. However, the Fed may raise rates a
couple of times in the first half of the year before this comes to fruition.
With relatively low new issuance, small dealer inventories, and high investor
cash levels, corporate bonds should also show some improvement. Bond markets
historically have seldom suffered two down years in a row. Of the seven years
since 1977 when bonds fell, they gained all but once the following year.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns (2.88%) 7.18% 7.10% 7.57%
</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.
20
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $68,035,782
Short term securities 1,773,644
-----------
Total investments 69,809,426
Cash 4,567
Interest receivable 1,245,311
-----------
Total assets 71,059,304
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 15,229
Payable to General American Life
Insurance Company 3,046
-----------
Total liabilities 18,275
-----------
Total net assets $71,041,029
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 2,903,866
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 24.46
TOTAL AMORTIZED COST OF INVESTMENTS $73,249,162
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Interest $ 4,348,190
-----------
Total investment income 4,348,190
-----------
EXPENSES:
Investment management charge 179,605
Administrative charge 35,921
-----------
Total expenses 215,526
-----------
Net investment income 4,132,664
-----------
NET REALIZED LOSS ON INVESTMENTS:
Net realized loss on investments (230,745)
-----------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss from investments (6,053,536)
-----------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(2,151,617)
===========
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------- -----------
1999 1998
----------- -----------
<S> <C> <C>
Operations:
Net investment income $ 4,132,664 $ 3,487,368
Net realized gain (loss) on investments (230,745) 126,562
Net unrealized gain (loss) on investments (6,053,536) 1,349,803
----------- -----------
Net increase (decrease) in net assets from
operations (2,151,617) 4,963,733
Capital share transactions 4,015,548 15,883,675
----------- -----------
Net increase in net assets 1,863,931 20,847,408
Net assets, beginning of year 69,177,098 48,329,690
----------- -----------
Net assets, end of year $71,041,029 $69,177,098
=========== ===========
</TABLE>
See accompanying notes to the financial statements.
21
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1999 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 1.42 1.40 1.39 1.29 1.25
Net realized and unrealized gain (loss) on
investments (2.15) .60 .59 (0.67) 2.04
-------- ------- ------- ------- -------
Net increase (decrease) in asset value per share (.73) 2.00 1.98 0.62 3.29
-------- ------- ------- ------- -------
Net asset value, end of year $ 24.46 $ 25.19 $ 23.19 $ 21.21 $ 20.59
======== ======= ======= ======= =======
Total return <F2> (2.88%) 8.61% 9.34% 3.02% 19.02%
Net assets, end of period (in thousands) $ 71,041 $69,177 $48,330 $38,015 $39,316
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> 5.75% 5.80% 6.25% 6.26% 6.43%
Portfolio turnover rate 28.86% 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 (decrease) 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**> 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.
</TABLE>
See accompanying notes to the financial statements.
22
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS
Aerospace & Military Technology (0.68%)
Raytheon Co., 6.45%, due 08/15/2002 $ 500,000 $ 486,405
-----------
Business Machines (2.06%)
Comdisco Inc., 6.5%, due 06/15/2000 500,000 499,805
Pitney Bowes Credit Corp., 5.65%, due 01/15/2003 1,000,000 962,950
-----------
1,462,755
-----------
Commercial Banking (4.61%)
ABN AMRO Bank-NY, 7.125%, due 10/15/2093 500,000 422,290
First National Bank Omaha, 7.32%, due 12/01/2010 1,500,000 1,425,990
HSBC Holding PLC, 7.5%, due 7/15/2009 500,000 494,010
Wells Fargo Captial, 7.95%, due 12/01/2026 1,000,000 932,540
-----------
3,274,830
-----------
Domestic Oil (1.08%)
Conoco Inc., 5.9%, due 04/15/2004 800,000 763,736
-----------
Finance (Non-Banking) (2.05%)
Associates Corp. N American, 5.8%, due 04/20/2004 500,000 473,745
Dean Witter Discover, 6.875%, due 03/01/2003 500,000 494,990
Merrill Lynch & Co. Inc., 7.0%, due 03/15/2006 500,000 489,945
-----------
1,458,680
-----------
Food & Agriculture (1.29%)
Coca Cola Enterprises, 5.75%, due 11/01/2008 500,000 445,380
Diageo Capital PLC, 6.125, due 08/15/2005 500,000 471,960
-----------
917,340
-----------
Energy Raw Materials (2.09%)
Enron Corp., 9.125%, due 04/01/2003 500,000 522,925
Williams Company, 7.625%, due 07/15/2019 1,000,000 960,940
-----------
1,483,865
-----------
International Oil (0.64%)
Norsk Hydro AS, 6.36%, due 01/15/2009 500,000 456,960
-----------
Media (3.14%)
Disney (Walt) Co., 5.125%, due 12/15/2003 500,000 467,500
News America Inc., 6.625%, due 01/09/2008 800,000 743,904
Westinghouse Electric, 8.875%, due 06/01/2001 1,000,000 1,022,580
-----------
2,233,984
-----------
Miscellaneous & Conglomerates (1.40%)
General Electric Capital Corp., 6.65%, due 09/03/2002 1,000,000 992,530
-----------
Motor Vehicles (0.61%)
Ford Motor Company, 6.625%, due 10/01/2028 500,000 433,760
-----------
Retail (3.15%)
Lowes Companies Inc., 6.875%, due 02/15/2028 1,000,000 880,380
Rite-Aid Corp., 6.875%, due 08/15/2013 500,000 345,000
Wal-Mart Stores, 9.10%, due 07/15/2000 1,000,000 1,014,330
-----------
2,239,710
-----------
(continued)
23
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
Telephone (3.93%)
Alltell Corp., 6.8%, due 05/01/2029 $ 500,000 $ 441,260
Southwestern Bell, 6.625%, due 07/15/2007 1,000,000 957,310
Sprint Capital Corp., 6.125%, due 11/15/2008 1,000,000 906,680
Telecom de Puerto Rico, 6.15%, due 05/15/2002 500,000 488,480
-----------
2,793,730
-----------
Travel & Recreation (0.99%)
Hertz Corp., 7.00%, 04/15/2001 700,000 700,693
-----------
Utilities, Electrical & Gas (3.48%)
Hydro Quebec, 8.40%, due 01/15/2022 1,000,000 1,060,890
Pacific Gas & Electric, 7.25%, due 08/01/2026 500,000 451,650
Potomac Electric Power, 6.00%, due 02/01/2004 500,000 479,670
Southern California Edison, 6.375%, due 01/15/2006 500,000 476,535
-----------
2,468,745
-----------
TOTAL CORPORATE BONDS (31.20%) (AMORTIZED COST $23,434,474) 22,167,723
-----------
AGENCY SECURITIES
Government & State Agency (16.75%)
FHLB, 5.085%, due 10/07/2008 1,000,000 868,280
FNMA, 6.80%, due 01/10/2003 500,000 501,485
FNMA, 5.250%, due 01/15/2003 1,000,000 990,160
FNMA, 5.750%, due 02/15/2008 1,000,000 922,970
FNMA, 5.625%, due 03/15/2001 2,000,000 1,981,560
FNMA, 5.750%, due 04/15/2003 1,000,000 971,250
FNMA, 5.750%, due 06/15/2005 1,000,000 950,620
FNMA, 6.160%, due 08/07/2028 401,000 351,188
FNMA, 6.210%, due 08/06/2038 625,000 539,550
FNMA, 5.490%, due 08/18/2000 1,000,000 994,840
FNMA, 7.10%, due 10/18/2004 1,000,000 990,780
FNMA Global Benchmark Note, 6.00%, due 05/15/2008 1,000,000 936,250
Tennessee Valley Authority, 6.00%, due 03/15/2013 1,000,000 896,410
-----------
TOTAL AGENCY SECURITIES (16.75%) (AMORTIZED COST
$11,346,504) 11,895,343
-----------
GOVERNMENT SECURITIES
United States Government Securities (45.42%)
US Treasury Bonds, 10.75%, due 02/15/2003 1,000,000 1,119,370
US Treasury Bonds, 9.875%, due 11/15/2015 500,000 646,720
US Treasury Bonds, 7.50%, due 11/15/2001 1,250,000 1,277,150
US Treasury Bonds, 7.25%, due 05/15/2016 1,000,000 1,045,310
US Treasury Bonds, 8.75%, due 05/15/2017 1,000,000 1,194,370
US Treasury Bonds, 8.125%, due 08/15/2019 1,800,000 2,051,154
US Treasury Bonds, 7.875%, due 02/15/2021 1,300,000 1,453,153
US Treasury Bonds, 7.250%, due 08/15/2022 1,000,000 1,054,220
US Treasury Bonds, 5.50%, due 08/15/2028 1,000,000 852,810
US Treasury Bonds, 5.25%, due 11/15/2028 1,000,000 823,750
US Treasury Bonds, 7.750%, due 02/15/2001 1,000,000 1,016,250
(continued)
24
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
- -------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
United States Government Securities (continued)
US Treasury Notes, 9.25%, due 02/15/2016 $ 500,000 $ 617,265
US Treasury Notes, 6.25%, due 08/15/2023 1,000,000 942,810
US Treasury Notes, 6.00%, due 02/15/2026 800,000 731,872
US Treasury Notes, 6.125%, due 11/15/2027 1,000,000 930,620
US Treasury Notes, 6.25%, due 01/31/2002 1,000,000 999,690
US Treasury Notes, 6.50%, due 05/31/2002 1,000,000 1,004,840
US Treasury Notes, 6.25%, due 06/30/2002 1,000,000 999,370
US Treasury Notes, 6.00%, due 08/15/2000 1,000,000 900,144
US Treasury Notes, 5.750%, due 10/31/2002 700,000 690,375
US Treasury Notes, 5.50%, due 01/31/2003 1,000,000 977,030
US Treasury Notes, 4.75%, due 11/15/2008 1,000,000 882,030
US Treasury Notes, 5.75%, due 08/15/2003 1,500,000 1,469,295
US Treasury Notes, 7.25%, due 05/15/2004 1,000,000 1,030,160
US Treasury Notes, 7.25%, due 08/15/2004 1,000,000 1,031,250
US Treasury Notes, 5.625%, due 11/30/2000 1,000,000 995,780
US Treasury Notes, 6.375%, due 03/31/2001 1,000,000 1,002,190
US Treasury Notes, 6.50%, due 05/31/2001 1,000,000 1,004,060
US Treasury Notes, 7.00%, due 07/15/2006 1,000,000 1,024,220
US Treasury Bonds, 6.375%, due 09/30/2001 1,000,000 1,002,030
US Treasury Bonds, 6.50%, due 10/15/2006 500,000 498,670
US Treasury Bonds, 6.25%, due 10/31/2001 500,000 1,000,160
-----------
32,268,118
-----------
Other Government Securities (2.40%)
State of Israel, 6.375%, due 12/15/2005 1,000,000 924,640
Manitoba Province, 9.00%, due 12/15/2000 250,000 255,548
Republic of Korea, 8.875%, due 04/15/08 500,000 524,410
-----------
1,704,598
-----------
TOTAL GOVERNMENT SECURITIES (47.82%) (AMORTIZED COST
$36,694,540) 33,972,716
-----------
TOTAL BONDS (95.77%) (AMORTIZED COST $71,475,518) 68,035,782
-----------
<CAPTION>
------------------------------------------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (2.50%)
Dealers Capital Access Trust, due 01/06/00 1,775,000 1,773,644
-----------
TOTAL SHORT TERM SECURITIES (2.50%) (AMORTIZED COST
$1,773,644) 1,773,644
-----------
TOTAL INVESTMENTS (98.27%) (AMORTIZED COST $73,249,162) 69,809,426
Other net assets (1.73%) 1,231,603
-----------
TOTAL NET ASSETS (100.00%) $71,041,029
===========
</TABLE>
See accompanying notes to the financial statements.
25
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Managed Equity Fund had a very disappointing year in 1999. The narrowness
of the market advance, led principally by large capitalization,
growth-oriented stocks, made it tough sledding for most value funds such as
this one. While the S&P 500 rose 21.0% for the year the S&P 500/Barra Value
Index appreciated only 12.7%. Lagging both of these indices sharply in the
second half of the year, the Fund rose a mere 3.04% for all of 1999. The
portfolio's significant underweighting of technology issues (13% versus 22%
for the S&P 500) had a pronounced effect on performance results. Given its
bias to the more value oriented sectors of the market, the Fund maintained
overexposure to the financial and energy groups which trailed the major
indices by a fairly large amount. However, some notable performers in the
Managed Equity Fund for 1999 included: Sprint up 60%, Cisco up 129%, and
Atlantic Richfield up 31%.
The Fund's objective will continue to be to purchase large sized companies
with visible earnings and cash flow growth prospects at a very reasonable
price. With an anticipated broadening out of equity market strength in 2000
and a rotation to some of the more value oriented sectors of the equity
universe, the Fund should be well positioned going forward. The average market
capitalization of $28 billion may trend down somewhat as we employ funds into
some of the more under appreciated areas of the equity market.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 3.04% 18.53% 12.36% 11.19%
</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.
26
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $58,512,565
Short term securities 6,660,164
-----------
Total investments 65,172,729
Cash 12,211
Dividends receivable 49,099
-----------
Total assets 65,234,039
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 15,804
Payable to General American Life
Insurance Company 5,472
Payable to broker 501,014
-----------
Total liabilities 522,290
-----------
Total net assets $64,711,749
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,762,817
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 36.71
TOTAL AMORTIZED COST OF INVESTMENTS $48,940,891
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 826,380
Interest 116,353
----------
Total investment income 942,733
----------
EXPENSES:
Investment management charge 177,638
Administrative charge 61,055
----------
Total expenses 238,693
----------
Net investment income 704,040
----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 2,449,375
----------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (859,001)
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $2,294,414
==========
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------- -----------
1999 1998
----------- -----------
<S> <C> <C>
Operations:
Net investment income $ 704,040 $ 858,157
Net realized gain on investments 2,449,375 5,970,966
Net unrealized gain (loss) on investments (859,001) 1,087,077
----------- -----------
Net increase in net assets from operations 2,294,414 7,916,200
Capital share transactions 613,618 (5,250,585)
----------- -----------
Net increase in net assets 2,908,032 2,665,615
Net assets, beginning of year 61,803,717 59,138,102
----------- -----------
Net assets, end of period $64,711,749 $61,803,717
=========== ===========
</TABLE>
See accompanying notes to the financial statements.
27
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------
1999 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 0.42 0.48 0.63 0.68 0.58
Net realized and unrealized gain on investments 0.66 3.95 5.26 3.70 4.66
-------- ------- ------- ------- --------
Net increase in asset value per share 1.08 4.43 5.89 4.38 5.24
-------- ------- ------- ------- --------
Net asset value, end of period $ 36.71 $ 35.63 $ 31.20 $ 25.31 $ 20.93
======== ======= ======= ======= ========
Total return <F2> 3.04% 14.19% 23.29% 20.92% 33.37%
Net assets, end of period (in thousands) $ 64,712 $61,804 $59,138 $48,587 $ 40,902
Ratio of expenses to average net assets <F3><F4> 0.39% 0.39% 0.41% 0.47% 0.48%
Ratio of net investment income to average net
assets <F3> 1.14% 1.46% 2.19% 2.97% 3.14%
Portfolio turnover rate 16.00% 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 (0.35)
-------- ------- ------- ------- --------
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> 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.
</TABLE>
See accompanying notes to the financial statements.
28
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
---------------------------------------------------------
Aerospace & Military Technology (4.74%)
<S> <C> <C>
Boeing Co. 27,200 $ 1,130,486
United Technologies Corp. 29,800 1,937,000
------------
3,067,486
------------
Air Transport (1.82%)
AMR Corp.<F*> 17,600 1,179,200
------------
Business Machines (6.44%)
IBM Corp. 28,800 3,110,400
Quantum Corp. - Dlt &
Storage<F*> 70,000 1,058,750
------------
4,169,150
------------
Business Services (5.21%)
Cisco Systems Inc.<F*> 31,500 3,374,438
------------
Chemicals (3.64%)
Honeywell International Inc. 40,875 2,357,956
------------
Commercial Banking (8.70%)
Bank Of America Corp. 19,010 954,055
Chase Manhattan Corp. (new) 29,200 2,268,460
Citigroup Inc. 43,350 2,408,613
------------
5,631,128
------------
Construction (2.31%)
Vulcan Materials Co. 37,500 1,497,638
------------
Domestic Oil (4.26%)
Apache 24,000 886,488
Arco 21,600 1,868,400
------------
2,754,888
------------
Drugs & Medicines (4.39%)
Baxter International 16,200 1,017,555
Merck & Co. Inc. 19,200 1,287,590
Total Renal Care Holdings<F*> 79,750 533,288
------------
2,838,433
------------
Energy & Utilities (1.90%)
FPL Group Inc. 28,700 1,228,704
------------
Energy Raw Materials (1.42%)
Baker Hughes Inc. 43,500 916,197
------------
Finance (Non-Banking) (3.79%)
Associates First Capital Corp. 39,600 1,086,505
Providian Financial Corp. 15,000 1,365,930
------------
2,452,435
------------
Food & Agriculture (1.62%)
Conagra Inc 46,400 1,046,877
------------
<CAPTION>
---------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
Government & State Agency (1.85%)
Federal Home Loan Mortgage
Corp. 25,500 $ 1,200,081
------------
Industrial Miscellaneous (3.31%)
Diamond Offshore Drilling Inc. 35,000 1,069,670
Lowes Companies Inc. 18,000 1,075,500
------------
2,145,170
------------
Insurance (2.25%)
Axa Financial Inc. 43,000 1,456,625
------------
International Oil (2.71%)
Exxon Mobile Corporation 21,782 1,754,801
------------
Media (2.08%)
McGraw-Hill Inc. 21,800 1,343,425
------------
Miscellaneous Finance (2.80%)
American General Corp. 23,900 1,813,413
------------
Non-Durables & Entertainment (3.74%)
Costco Wholesale
Corporation<F*> 26,500 2,418,125
------------
Producer Goods (3.45%)
Illinois Tool Works Inc. 25,500 1,722,831
Ingersoll-Rand Co. 9,300 512,077
------------
2,234,908
------------
Retail (3.32%)
K Mart Corp.<F*> 95,800 963,940
TJX Cos Inc. 58,000 1,185,346
------------
2,149,286
------------
Telephone (10.14%)
A T & T Corp. 24,450 1,240,838
MCI Worldcom Inc.<F*> 48,000 2,546,976
Sprint Corp. 41,200 2,773,254
------------
6,561,068
------------
Tobacco (2.03%)
Philip Morris Companies Inc. 56,600 1,312,384
------------
Travel & Recreation (2.50%)
Walt Disney Productions 55,000 1,608,749
------------
TOTAL COMMON STOCK (90.42%)
(COST $42,280,727) 58,512,565
------------
(continued)
29
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (10.29%)
Merrill Lynch & Co.,
5.57%, due 1/24/00 $ 400,000 $ 398,582
Eagle Funding Capital
Corp.,
6.34%, due 1/14/00 2,450,000 2,444,426
Moat Funding,
6.39%, due 1/10/00 1,825,000 1,822,103
Centennial Energy
Holdings, 6.89%,
due 1/14/00 2,000,000 1,995,053
------------
6,660,164
------------
TOTAL SHORT TERM SECURITIES (10.29%)
(AMORTIZED COST $6,660,164) 6,660,164
------------
TOTAL INVESTMENTS (100.71%)
(AMORTIZED COST $48,940,891) 65,172,729
Other net liabilities (-0.71%) (460,980)
------------
TOTAL NET ASSETS (100.00%) $ 64,711,749
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
30
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Asset Allocation Fund gained 23.37% in 1999 compared to 12.07% for the
Lipper Flexible Portfolio Average over the same period. The Fund outperformed
the all-equity S&P 500 index as well, which rose 21.0% for the year. Despite
having an approximate 15% allocation to fixed income securities that generally
declined in value over the course of the year, the Fund posted solid
performance due in large part to strong returns in the equity segment of the
portfolio.
Large capitalization growth stocks consistently and dramatically beat the
broader market in 1999 much like in 1998. The Fund's large cap growth exposure
fared well with particular strength in technology, communications services and
capital goods. The market was very much technology driven, with eight of the
top ten performing industry groups being technology or technology-related.
Excluding technology issues, the S&P 500 actually declined for the year. The
Asset Allocation Fund's technology exposure at the end of 1999 was
approximately 34% compared with 22% for the S&P 500. Technology standouts such
as Oracle, EMC and Texas Instruments continue to be held in the portfolio.
The fixed income portion of the portfolio, a blend of high quality corporate
and treasury securities, comprised approximately 15% of the total Fund's
assets as of the end of 1999. While maintaining an average duration of under
four years, rising yields across the entire yield curve over the course of the
year put pressure on returns for this segment of the portfolio.
At year end, the fund maintained an asset mix of 80% stocks, 15% bonds, and 5%
cash.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 23.37% 20.81% 13.49% 13.32%
</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.
31
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $ 23,014,508
Common stocks 121,506,731
Preferred stocks 1,015,000
Short term securities 6,665,640
------------
Total investments 152,201,879
Cash 69,299
Dividends and interest receivable 477,453
------------
Total assets 152,748,631
------------
LIABILITIES:
Payable to Conning Asset Management
Company 62,453
Payable to General American Life
Insurance Company 12,490
Payable to broker 613,125
Total liabilities 688,068
------------
Total net assets $152,060,563
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 3,282,540
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 46.32
TOTAL AMORTIZED COST OF INVESTMENTS $ 90,960,879
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 919,280
Interest 1,978,197
-----------
Total investment income 2,897,477
-----------
EXPENSES:
Investment management charge 671,598
Administrative charge 134,320
-----------
Total expenses 805,918
-----------
Net investment income 2,091,559
-----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 43,126
-----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 26,655,271
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $28,789,956
===========
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
------------ ------------
1999 1998
------------ ------------
<S> <C> <C>
Operations:
Net investment income $ 2,091,559 $ 2,744,919
Net realized gain on investments 43,126 7,623,117
Net unrealized gain on investments 26,655,271 8,241,285
------------ ------------
Net increase in net assets from operations 28,789,956 18,609,321
Capital share transactions (1,238,902) (5,369,170)
------------ ------------
Net increase in net assets 27,551,054 13,240,151
Net assets, beginning of year 124,509,509 111,269,358
------------ ------------
Net assets, end of period $152,060,563 $124,509,509
============ ============
</TABLE>
See accompanying notes to the financial statements.
32
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
------------------------------------------------------------------
1999 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 0.63 0.81 0.96 0.93 0.82
Net realized and unrealized gain (loss) on
investments 8.14 4.88 4.07 2.70 4.38
-------- -------- -------- ------- -------
Net increase in asset value per share 8.77 5.69 5.03 3.63 5.20
-------- -------- -------- ------- -------
Net asset value, end of period $ 46.32 $ 37.55 $ 31.86 $ 26.83 $ 23.20
======== ======== ======== ======= =======
Total return <F2> 23.37% 17.86% 18.73% 15.66% 28.88%
Net assets, end of period (in thousands) $152,061 $124,510 $111,269 $86,191 $73,387
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> 1.56% 2.42% 3.24% 3.77% 3.92%
Portfolio turnover rate 12.21% 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 (decrease) 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.
</TABLE>
See accompanying notes to the financial statements.
33
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
<S> <C> <C>
Government Securities (5.06%)
Quebec Providence, 8.10%,
due 04/23/2002 $1,000,000 $ 1,024,160
US Treasury Bonds, 7.250%,
due 05/15/2016 1,500,000 1,567,965
US Treasury Notes, 6.375%,
due 08/15/2002 1,000,000 1,002,190
US Treasury Notes, 5.750%,
due 08/15/2003 1,000,000 979,530
US Treasury Notes, 6.250%,
due 01/31/2002 1,300,000 1,299,597
US Treasury Notes, 7.000%,
due 07/15/2000 1,000,000 1,024,220
US Treasury Notes, 6.500%,
due 10/15/2006 800,000 797,872
------------
<CAPTION>
TOTAL GOVERNMENT SECURITIES (5.06%)
<S> <C> <C>
(AMORTIZED COST $7,873,234) 7,695,534
------------
CORPORATE BONDS
Air Transport (0.68%)
Delta Airlines, 9.200%,
due 09/23/2014 1,000,000 1,036,400
------------
Commercial Banking (0.16%)
Boatmen's Bancshares,
6.750%, due 03/15/2003 250,000 243,855
------------
Chemicals (0.17%)
E I Dupont De Nemours &
Co., 8.250%,
due 09/15/2006 250,000 262,745
------------
Construction (0.33%)
Hanson Overseas BV,
7.375%, due 01/15/2003 500,000 501,495
------------
Finance (Non-Banking) (1.30%)
Associates Corp., 6.875%,
due 02/01/2003 500,000 497,340
Bear Stearns Co., 6.750%,
due 04/15/2003 1,000,000 979,640
Merrill Lynch & Co. Inc.,
7.375%, due 08/17/2002 500,000 503,715
------------
1,980,695
------------
Food & Agriculture (1.49%)
Coca-Cola Company, 6.625%,
due 10/01/2002 500,000 496,195
Pepsi Bottling, 5.625%,
due 02/17/2009 2,000,000 1,762,340
------------
2,258,535
------------
<CAPTION>
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
<S> <C> <C>
Liquor (0.33%)
Anheuser-Busch Companies
Inc., 6.900%,
due 10/01/2002 $ 500,000 $ 497,035
------------
Media (0.33%)
Seagram Company LTD,
8.35%, due 11/15/2006 500,000 507,945
------------
Motor Vehicles (0.65%)
Enterprise Rent A Car,
7.500%, due 06/15/2003 1,000,000 995,530
------------
<CAPTION>
Non-Durables & Entertainment (0.63%)
<S> <C> <C>
Waste Management Inc.,
6.000%, due 05/15/2001 1,000,000 957,340
------------
<PAGE>
<CAPTION>
Paper and Forest Products (0.61%)
<S> <C> <C>
Celulosa Arauco &
Constitucion, 7.000%,
due 12/15/2007 1,000,000 922,910
------------
Railroads & Shipping (.32%)
Canadian National Railway,
6.625%, due 05/15/2003 500,000 486,875
------------
Telephone (0.95%)
GTE Southwest, 6.540%,
due 12/01/2005 500,000 482,700
MCI Worldcom Inc., 6.400%,
due 08/15/2005 1,000,000 957,830
------------
1,440,530
------------
<CAPTION>
Utilities, Electrical & Gas (1.33%)
<S> <C> <C>
Consolidated Edison,
7.375%, due 09/15/2000 500,000 502,535
Niagara Mohawk Power,
9.750%, due 11/01/2005 500,000 549,945
Northern States Power,
6.125%, due 12/01/2005 500,000 468,875
Texas Utilities Co.,
7.375%, due 08/01/2001 500,000 502,715
------------
2,024,070
------------
TOTAL CORPORATE BONDS (9.28%)
(AMORTIZED COST $14,420,273) 14,115,960
------------
<CAPTION>
MORTGAGE BACKED SECURITIES AND CMO'S
Government & State Agency (0.14%)
<S> <C> <C>
FNMA 1992-128G, 6.000%,
due 02/25/2022 215,688 212,384
------------
(continued)
34
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
<S> <C> <C>
Media (0.65%)
Disney Spin III, 14%,
due 03/01/2000 $1,000,000 $ 990,630
------------
<S> <C>
TOTAL MORTGAGE BACKED SECURITIES AND
CMO'S (0.79%) (AMORTIZED COST
$1,231,041) 1,203,014
------------
TOTAL BONDS (15.13%)
(AMORTIZED COST 23,524,548) 23,014,508
------------
<CAPTION>
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
Aerospace & Military Technology (1.78%)
<S> <C> <C>
United Technologies Corp. 41,600 2,704,000
------------
Air Transport (0.57%)
AMR Corp. 13,000 871,000
------------
Business Machines (10.59%)
Compaq Computer Corp. 32,000 865,984
EMC Corp./Mass 40,000 4,370,000
IBM Corp. 24,000 2,592,000
Oracle Corp. 73,800 8,270,176
------------
16,098,160
------------
Business Services (8.34%)
CSG Systems International 100,600 4,011,425
Cisco Systems Inc. 81,000 8,677,125
------------
12,688,550
------------
Chemicals (2.12%)
Ecolab, Inc. 40,000 1,565,000
Monsanto 46,500 1,656,563
------------
3,221,563
------------
Commercial Banking (5.30%)
Bank Of America Corp. 40,874 2,051,343
Chase Manhattan Corp.
(new) 40,800 3,169,630
Citigroup Inc. 51,000 2,833,662
------------
8,054,635
------------
Drugs & Medicines (7.66%)
Baxter International 25,000 1,570,300
Immunex Corp. 40,000 4,380,000
Eli Lilly & Co. 22,000 1,463,000
Merck & Co. Inc. 28,800 1,931,386
Pfizer Inc. 71,100 2,306,271
------------
11,650,957
------------
<CAPTION>
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Electronics (7.75%)
Intel Corp. 32,800 $ 2,699,834
Philips Electronics 15,640 2,111,400
Texas Instruments Inc. 72,000 6,975,000
------------
11,786,234
------------
Energy Raw Materials (1.43%)
Halliburton Co. 54,000 2,173,500
------------
Finance (Non-Banking) (1.32%)
Providian Financial Corp. 22,000 2,003,364
------------
Food & Agriculture (2.15%)
Coca-Cola Company 27,000 1,572,750
Pepsico Inc. 48,000 1,692,000
------------
3,264,750
------------
<PAGE>
Government & State Agency (1.08%)
Federal Home Loan Mortgage
Corp. 35,000 1,647,170
------------
<CAPTION>
Industrial Miscellaneous (3.74%)
<S> <C> <C>
Circuit City Stores Inc. 72,000 3,244,464
Diamond Offshore Drilling
Inc. 80,000 2,444,960
------------
5,689,424
------------
Insurance (2.36%)
American International
Group Inc. 33,125 3,581,641
------------
Miscellaneous Finance (1.56%)
American General Corp. 31,300 2,374,888
------------
<CAPTION>
Non-Durables & Entertainment (1.80%)
<S> <C> <C>
Costco Wholesale
Corporation 30,000 2,737,500
------------
Producer Goods (2.85%)
General Electric Corp. 28,000 4,333,000
------------
Retail (5.00%)
Family Dollar Stores 80,000 1,304,960
K Mart Corp. 114,900 1,156,124
Kroger Co. 90,000 1,698,750
TJX Cos. Inc. 138,400 2,828,481
Tandy Corp. 12,500 614,838
------------
7,603,153
------------
Soaps & Cosmetics (1.24%)
Bristol-Myers Squibb Co. 29,400 1,887,098
------------
Telephone (10.12%)
Bell Atlantic Corp. 22,354 1,376,157
Lucent Technologies 36,460 2,727,646
MCI Worldcom Inc. 70,500 3,740,870
(continued)
35
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
Telephone (continued)
Nextlink Communications
Inc.-A 46,000 $ 3,820,851
Sprint Corp. 55,200 3,715,620
------------
15,381,144
------------
Travel & Recreation (1.15%)
Walt Disney Productions 60,000 1,755,000
------------
TOTAL COMMON STOCK (79.91%)
(COST $59,700,691) 121,506,731
------------
<CAPTION>
-------------------------------------------------------
MARKET
PREFERRED STOCK SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
International Oil (0.67%)
Lasmo PLC Series A 40,000 1,015,000
------------
TOTAL PREFERRED STOCK (0.67%)
(AMORTIZED COST $1,070,000) 1,015,000
------------
<CAPTION>
----------------------------------------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (4.38%)
Dealers Capital Access Trust, 5.51%,
due 01/06/2000 $ 980,000 $ 979,252
Moat Funding, 6.46%,
due 01/14/2000 2,000,000 1,995,363
Centennial Energy Holdings, 6.98%, due 01/12/2000 2,700,000 2,694,266
Zions Bancorporation, 6.21%, due 01/20/2000 1,000,000 996,759
------------
6,665,640
------------
TOTAL SHORT TERM SECURITIES (4.38%)
(AMORTIZED COST $6,665,640) 6,665,640
------------
TOTAL INVESTMENTS (100.09%)
(AMORTIZED COST $90,960,879) 152,201,879
Other net liabilities (-0.09%) -141,316
------------
TOTAL NET ASSETS (100.00%) $152,060,563
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
36
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The International Index Fund returned 29.08% in 1999 as the global recovery
spurred generally strong stock performance across the board. The average
country index was up 35%, with Asia and Scandinavia leading the way. In
general, most of the more developed markets lagged the lesser developed
economies. Recent economic reports have led to upward revisions in global
growth expectations. Policy measures in Japan brought about stabilization, and
Japanese growth is set to continue to beat consensus forecasts. Fiscal
stimulus has jump-started domestic demand and business confidence is rising.
In Europe, economic growth was improving last year and should continue in
2000. Healthy labor markets, strong consumer confidence, construction
spending, as well as pent-up demand will push consumption to higher levels. UK
growth should be strong. Germany, Italy, Spain and France should also show
continued improvement.
The pickup in global economic activity in 1999 caused a shift in central bank
policy. Banks will be preemptive this year with more tightening to be
expected. Slight upward pressures on inflation will lead to higher long-term
yields on global fixed income instruments. The increase in rates, however,
should not be enough to put a major damper on global growth. As the US economy
slows from its very high levels of growth, stronger growth elsewhere with
likely compensate.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
[FN]
<F*> On January 1, 1999 Conning Asset Management Company assumed portfolio
management duties from the former sub-advisor of the fund, Provident Capital
Management, Inc. On January 1, 1999 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 DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns 29.08% 12.97% 14.69%
</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.
37
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $13,858,829
Rights and warrants 1,818
Short term securities 199,440
-----------
Total investments 14,060,087
Cash 19,276
Broker Receivable 3,832
Dividends receivable 36,324
-----------
Total assets 14,119,519
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 5,438
Payable to General American Life
Insurance Company 3,441
-----------
Total liabilities 8,879
-----------
Total net assets $14,110,640
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 550,056
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 25.65
TOTAL AMORTIZED COST OF INVESTMENTS $ 9,030,180
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 220,364
Interest 9,112
----------
Total investment income 229,476
----------
EXPENSES:
Investment management charge 56,947
Administrative charge 35,211
----------
Total expenses 92,158
----------
Net investment income 137,318
----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized loss on investments (897)
Net realized gain on foreign currency
conversions 379
Net realized loss on Euro conversion (701)
----------
NET REALIZED LOSS FROM INVESTMENTS AND
FOREIGN CURRENCY (1,219)
----------
NET UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY:
Net unrealized gain on investments 2,388,467
Net unrealized gain on foreign currency
conversions 647,631
----------
NET UNREALIZED GAIN FROM INVESTMENTS AND
FOREIGN CURRENCY 3,036,098
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $3,172,197
==========
</TABLE>
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------- -----------
1999 1998
----------- -----------
<S> <C> <C>
Operations:
Net investment income $ 137,318 $ 124,709
Net realized gain (loss) on investments and foreign
currency conversions (1,219) 22,428
Net unrealized gain on investments and foreign currency 3,036,098 1,539,675
----------- -----------
Net increase in net assets from operations 3,172,197 1,686,812
Capital share transactions 243,784 581,032
----------- -----------
Net increase in net assets 3,415,981 2,267,844
Net assets, beginning of period 10,694,659 8,426,815
----------- -----------
Net assets, end of period $14,110,640 $10,694,659
=========== ===========
</TABLE>
See accompanying notes to the financial statements.
38
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND<F*>
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
------------------------------------------------------------------------
1999 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 $ 13.94
------- ------- ------- ------- --------
Income from operations:
Net investment income 0.26 0.24 0.26 0.24 0.25
Net realized and unrealized gain on
investments <F4> 5.52 3.03 0.11 0.88 0.92
------- ------- ------- ------- --------
Net increase in asset value per share 5.78 3.27 0.37 1.12 1.17
------- ------- ------- ------- --------
Net asset value, end of period $ 25.65 $ 19.87 $ 16.60 $ 16.23 $ 15.11
======= ======= ======= ======= ========
Total return <F2> 29.08% 19.76% 2.27% 7.40% 8.35%
Net assets, end of period (in thousands) $14,111 $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> 1.17% 1.29% 1.53% 1.57% 1.79%
Portfolio turnover rate 24.75% 4.90% 57.70% 19.53% 113.91%
<CAPTION>
FEBRUARY 16
YEAR ENDED (INCEPTION) TO
DECEMBER 31 DECEMBER 31
----------- --------------
1994 1993
----------- --------------
<S> <C> <C>
Net asset value, beginning of year <F1> $ 13.10 $ 10.00
------- -------
Income from operations:
Net investment income 0.13 0.14
Net realized and unrealized gain on
investments <F4> .71 2.96
------- -------
Net increase in asset value per share .84 3.10
------- -------
Net asset value, end of year $ 13.94 $ 13.10
======= =======
Total return <F2> 6.42% 31.03%
Net assets, end of year (in thousands) $ 4,242 $ 3,295
Ratio of expenses to average net
assets <F3><F*> 1.00% 1.00%
Ratio of net investment income to average
net assets <F3> 98% 1.38%
Portfolio turnover rate 46.19% 26.97%
<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> Includes net realized and unrealized gain (loss) on foreign currency
conversions.
<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 percent to .50 percent on the first $10 million of the average
daily value of the net assets, from .60 percent to .40 percent on the balance
over $10 million and less than $20 million, and from .50 percent to .30 percent
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.
</TABLE>
See accompanying notes to the financial statements.
39
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Austria (0.16%)
Bank Austria AG 400 $ 22,452
------------
Australia (2.26%)
Westpac Banking 6,706 46,103
Telstra Corporation Limited 13,400 72,598
Broken Hill Properties 5,591 73,170
National Australia Bank Ltd. 2,900 44,213
News Corp. Ltd. AU 6,227 60,261
Western Mining Ltd. 4,131 22,705
------------
319,050
------------
Belgium (0.99%)
Electrabel SA 200 65,150
Generale De Banque 1 401
Fortis AG<F*> 2,079 74,641
Fortis AG - Strip VVPR<F*> 2,079 21
------------
140,213
------------
Germany (11.13%)
SAP AG 200 97,825
SAP AG-Vorzug 50 30,345
Veba AG 800 38,889
RWE AG 1,450 57,407
Metro AG 450 24,491
Bayer AG 2,100 99,349
BASF AG 1,800 93,635
Deutsche Telekom AG<F*> 3,450 241,538
Allianz AG 400 133,708
Volkswagen AG 700 39,290
Banco Bilbao Vizcaya, SA 6,993 99,109
Daimler-Chrysler AG 1,704 133,048
Siemens AG 1,550 197,304
Deutsche Bank AG 1,150 96,880
Viag AG 1,300 24,145
Mannesmann AG DM 500 120,477
Dresdner Bank AG 800 43,219
------------
1,570,659
------------
Denmark (0.78%)
Den Danske Bank 200 21,820
Novo-Nordisk 315 41,580
Tele Danmark 638 47,178
------------
110,578
------------
Spain (4.48%)
Empresa Nacional Electric 2,920 57,686
Repsol SA 1,686 38,901
Banco Santander Central 4,092 46,100
Telefonica de Espana 4,320 107,383
Repsol (ADR) 2,400 55,800
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Spain (continued)
Telefonica (ADR) 4,137 $ 326,037
------------
631,907
------------
Finland (2.48%)
UPM-Kymmene Corp. 1,100 44,101
Nokia AB-A Shares 1,700 306,705
Valmet-Rauma OYJ<F*> 32 414
------------
351,220
------------
France (9.74%)
L'Air Liquide 337 56,139
AXA UAP 733 101,681
Groupe Danone 250 58,635
Alcatel Alsthom 450 102,837
L'Oreal 100 79,834
LVMH Moet-Hennessy Louis
Vuitton 200 89,145
Rhone-Poulenc A 1,100 63,616
St. Gobain 250 46,783
Societe Generale Paris 400 92,613
Elf Aquitaine 500 76,676
Total Fina SA-B 700 92,964
France Telecom SA 2,872 377,962
Carrefour Supermarche 300 55,057
Total Fina SA-Strip VVPR<F*> 450 2
Vivendi 900 80,871
------------
1,374,815
------------
Great Britain (20.34%)
Abbey National PLC 2,691 42,935
Barclays PLC 4,067 116,799
Smithkline Beecham PLC 10,074 128,259
British Telecommunications 15,724 383,407
British Sky Broadcasting PLC 2,769 44,469
Cable & Wireless 5,500 92,981
Reuters Group PLC 5,258 71,985
Diago PLC 8,401 67,425
British Aerospace PLC 3,248 21,459
Allied Zurich PLC 3,286 38,632
British American Tobacco PLC 4,559 25,844
Glaxo Holdings PLC 6,459 182,164
HSBC Holdings PLC 9,900 137,691
BG PLC (ADR) 1,176 36,315
Marks & Spencer 10,201 48,457
Centrica PLC 7,065 19,982
Unilever PLC 10,751 78,922
Halifax PLC 3,866 42,772
Royal Sun Alliance Insurance 3,727 28,320
Pearson PLC 3,100 100,119
(continued)
40
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Prudential Corporation PLC 6,933 $ 136,314
Rio Tinto PLC-REG 3,869 93,218
Vodafone Group 25,510 126,111
British Petroleum 25,182 252,632
Invensys PLC 11,095 60,258
Lloyds TSB Group 8,206 102,426
BG Group PLC 6,157 39,693
Marconi PLC 7,574 133,720
Tesco 20,100 60,980
Zeneca Group PLC 3,766 155,859
------------
2,870,148
------------
Hong Kong (2.76%)
Bank of East Asia 7,400 20,562
CLP Holdings Ltd. 5,500 25,330
HSBC Holdings 600 8,413
CDL Hotels International 1,000 399
Cheung Kong 8,000 101,627
Hang Seng Bank 3,200 36,534
Wharf Holdings 4,000 9,288
Hong Kong Telecom 12,600 36,389
Hutchison Whampo 6,000 87,219
New World Development 5,000 11,256
Sun Hung KAI Properties 3,000 31,260
Swire Pacific "A" 3,500 20,666
------------
388,943
------------
Ireland (0.28%)
Allied Irish 3,528 39,958
------------
Italy (3.81%)
Assicurazioni Generali 4,300 141,365
Credito Italiano 10,654 52,111
Ente Nazionale Idrocarburi 14,587 79,829
Edison SPA 2,500 20,397
Telecom Italia Mobile 9,198 102,241
Telecom Italia SPA 5,555 77,949
Istituto Bancario San Paolo
Di Torino 3,061 41,388
Fiat SPA ITL1000 770 21,880
Beni Stabili SPA<F*> 3,061 1,074
------------
538,234
------------
Japan (24.49%)
Matsushita Electric (ADR) 200 55,800
Asahi Glass Co. Ltd. 4,000 30,912
Bank of Tokyo-Mitsubishi 9,000 125,211
Canon 1,000 39,666
Daiwa Securities 5,000 78,111
East Japan Railway 14 75,365
Fuji Bank 5,000 48,508
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Japan (continued)
Fuji Photo 2,000 $ 72,884
Fujitsu 6702 3,000 136,583
Hitachi Ltd. JPY5 12,000 192,272
Honda Motors 1,000 37,126
Industrial Bank Japan 8,000 76,987
Ito Yokado 8264 1,000 108,446
Japan Air Lines 9,000 26,643
Kansai Electric Power 3,400 59,161
Kinki Nippon Railway 3,000 12,017
Komatsu Ltd. 12,000 55,102
Asahi Bank 8,000 49,240
Marutomi Group<F*> 75 147
Matsushita Electronics 7,000 193,542
Maruko Co. Ltd. 50 503
Mitsubishi Estate Co. 5,000 48,703
Mitsubishi Corp. 6,000 46,251
Mitsubishi Trust 4,000 35,172
Mitsubishi Chemical Corp. 4,157 14,621
Mitsubishi Electric 7,000 45,137
Mitsubishi Heavy Industries 15,000 49,973
Mitsui Company 6,000 41,913
Sakura Bank 12,000 69,406
Denso Corporation 1,000 23,839
NEC Corp. 4,000 95,159
Nippon Telegraph & Telephone 19 324,850
Nippon Steel Corp. 24,000 56,040
Nissan 7201<F*> 9,000 35,348
Nomura Securities 6,000 108,153
Nissen<F*> 50 158
Sankyo Co., Ltd. 2,000 41,034
Sanyo Electric Co. Ltd. 25,000 101,363
Sharp Corp. 4,000 102,193
Sony Corp. 500 148,014
Sumitomo Bank Ltd. 2,000 27,336
Tokio Marine & Fire 6,000 70,050
Tohoku Electric Power 1,100 16,335
Tokai Bank 3,000 18,875
Tokyo Electric Power 4,600 123,140
Toyota Motor Corp. 7,000 338,528
------------
3,455,817
------------
Malaysia (0.71%)
Malayan Banking Berhad 4,000 14,211
Sime Darby Berhad 6,000 7,611
Telekom Malaysia 13,500 52,224
Tenaga Nasional Berhad 9,000 23,211
United Engineers
(Malaysia)<F*> 2,000 3,184
------------
100,441
------------
(continued)
41
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Netherlands (4.48%)
Elsevier 1,359 $ 16,155
ING Groep N.V. 1,234 74,136
Royal Dutch Petroleum 3,028 184,679
ABN AMRO Holdings 1,756 43,649
Koninklijke Ahold NV 600 17,675
Akzo 828 41,329
TNT Post Group 600 17,109
Koninklijke PTT Nederland 600 58,274
Unilever NV 1,192 65,520
Philips Electronics 705 95,394
Wolters Kluwer-CVA 544 18,321
------------
632,241
------------
Norway (0.29%)
Den Norske Bank ASA 2,900 11,871
Norsk Hydro 700 29,264
------------
41,135
------------
New Zealand (0.18%)
Telecom Corp. of New Zealand 5,300 24,876
------------
Portugal (0.32%)
Electricidade de Portugal, SA 1,000 17,370
Portugal Telecom SA 2,500 27,288
------------
44,658
------------
Sweden (2.07%)
Ericsson LM B 3,600 230,505
Foreningssparbanken AB 2,100 30,727
Volvo AB SEK5 1,200 30,902
Mandamus Fastigheter 70 434
------------
292,568
------------
Singapore (0.83%)
Oversea-Chinese Banking Corp. 5,040 46,286
Singapore Telecommunications 23,000 47,491
Singapore Airlines Ltd. 2,000 22,689
------------
116,466
------------
Switzerland (5.64%)
Credit Suisse Group 600 118,636
Nestle SA 60 109,340
Roche Holding AG 2 32,486
Roche Holding AG 10 118,073
Swiss Reinsurance 40 81,739
Novartis AG 110 160,667
Schweizerischer Bankverein 311 83,545
ABB Ltd.<F*> 723 87,964
------------
792,450
------------
TOTAL COMMON STOCK (98.22%)
(AMORTIZED COST $8,828,676) 13,858,829
------------
<CAPTION>
--------------------------------------------------------
MARKET
RIGHTS SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Rights (0.00%)
Fortis AG CVG<F*> 231 $ 794
------------
TOTAL RIGHTS (0.00%)
(AMORTIZED COST $1,698) 794
------------
<CAPTION>
-------------------------------------------------------
MARKET
WARRANTS SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Warrants (0.01%)
Compangie Gen de Eaux WT
2001 Expiring 2001<F*> 300 1,013
Wharf Holdings WT
Expiring 12/99 200 11
------------
TOTAL WARRANTS (0.01%)
(AMORTIZED COST $366) 1,024
------------
<PAGE>
<CAPTION>
-------------------------------------------------------
PAR MARKET
SHORT TERM INVESTMENTS VALUE VALUE
-------------------------------------------------------
<S> <C> <C>
Commercial Paper (1.41%)
Merrill Lynch & Co., 5.57%,
due 01/24/2000 $100,000 $ 99,646
W. W. Grainger Inc., 5.71%,
due 01/14/2000 100,000 99,794
------------
TOTAL SHORT TERM INVESTMENTS (1.41%)
(AMORTIZED COST $199,440) 199,440
------------
TOTAL INVESTMENTS (99.64%)
(AMORTIZED COST $9,030,180) 14,060,087
Other net assets (0.36%) 50,553
------------
TOTAL NET ASSETS (100.00%) $ 14,110,640
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to the financial statements.
</TABLE>
42
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
On the heels of an excellent fourth quarter in 1999, the Mid-Cap Equity Fund
finished the year up 14.1% versus an increase of 14.7% for the S&P 400. The
second half of the year saw a subtle rotation into the broader indices with
many outperforming the large cap dominated S&P 500 in the latter part of the
year. Stellar performance in the communications services sector of the Fund
helped drive total performance. Names such as Nextlink Communications (up
99%), Globalstar Telecom (up 78%), Advanced Communications (up 210%), and
Intermedia Communications (up 122%) all benefited from extreme positive
investor sentiment within the wireless/cellular arena over the course of the
year. Other pockets of strength included: oil and gas drillers, generic drug
companies, and selected technologies.
The Mid-Cap Equity Fund finished the year with an average market
capitalization of approximately $1.9 billion which actually puts it more in
line with the smaller capitalization indices such as the Russell 2000 and the
S&P 600. Our strategy going into 2000 is to increase exposure towards the
value sectors within the small to medium capitalization equity universe. The
narrowness of the market advance has allowed several high quality and stable
companies to be offered at what we consider to be compelling valuation levels.
At the same time profits will be taken in the Fund where we perceive full
valuation, if not overvaluation, to have been realized.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns 14.09% 16.93% 14.13%
</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.
43
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $ 9,392,291
Short term securities 622,958
-----------
Total investments 10,015,249
Cash 40,668
Dividends receivable 33
-----------
Total assets 10,055,950
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 4,219
Payable to General American Life
Insurance Company 767
Payable to broker 152,679
-----------
Total liabilities 157,665
-----------
Total net assets $ 9,898,285
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 398,934
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 24.81
TOTAL AMORTIZED COST OF INVESTMENTS $ 7,248,427
</TABLE>
<TABLE>
- ------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 38,403
Interest 22,957
----------
Total investment income 61,360
----------
EXPENSES:
Investment management charge 45,950
Administrative charge 8,355
----------
Total expenses 54,305
----------
Net investment income 7,055
----------
NET REALIZED LOSS ON INVESTMENTS:
Net realized loss on investments (333,707)
----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments 1,532,662
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,206,010
==========
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------- -----------
1999 1998
----------- -----------
<S> <C> <C>
Operations:
Net investment income $ 7,055 $ 9,770
Net realized gain (loss) on investments (333,707) 241,176
Net unrealized gain (loss) on investments 1,532,662 (463,606)
---------- ----------
Net increase (decrease) in net assets from
operations 1,206,010 (212,660)
Capital share transactions 159,362 1,893,463
---------- ----------
Net increase in net assets 1,365,372 1,680,803
Net assets, beginning of year 8,532,913 6,852,110
---------- ----------
Net assets, end of period $9,898,285 $8,532,913
========== ==========
</TABLE>
See accompanying notes to the financial statements.
44
<PAGE>
<TABLE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
YEAR ENDED DECEMBER 31
--------------------------------------------------------------------------
1999 1998 1997<F*> 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 0.02 0.03 0.16 0.15 0.05
Net realized and unrealized gain (loss) on
investments 3.04 (0.35) 5.49 2.53 2.34
-------- -------- ------- ------- -------
Net increase (decrease) in asset value per
share 3.06 (0.32) 5.65 2.68 2.39
-------- -------- ------- ------- -------
Net asset value, end of period $ 24.81 $ 21.75 $ 22.07 $ 16.42 $ 13.74
======== ======== ======= ======= =======
Total return <F2> 14.09% -1.48% 34.46% 19.46% 21.09%
Net assets, end of period (in thousands) $ 9,898 $ 8,533 $ 6,852 $ 4,120 $ 4,260
Ratio of expenses to average net
assets <F3> 0.64% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to average
net assets <F3> 0.08% 0.13% .81% 1.02% 0.75%
Portfolio turnover rate 23.92% 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 (loss) on
investments (0.19) 1.38
-------- --------
Net increase (decrease) 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> 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.
<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.
</TABLE>
See accompanying notes to the financial statements.
45
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Air Transport (0.98%)
Southwest Airlines 6,000 $ 97,122
------------
Business Machines (12.10%)
Gateway Inc.<F*> 3,600 259,423
Lexmark International
Group<F*> 4,000 362,000
Plantronics<F*> 3,280 234,723
Synposys Inc.<F*> 3,000 200,250
Tech Data Corp.<F*> 5,200 141,050
------------
1,197,446
------------
Business Services (17.53%)
BMC Software Inc.<F*> 4,000 319,748
CSG Systems International<F*> 10,000 398,750
Expeditors International Of
WA 9,900 433,739
Intermedia Communications
Inc.<F*> 7,000 271,684
Networks Associates 5,900 157,453
Sungard Data Systems Inc.<F*> 6,500 154,375
------------
1,735,749
------------
Chemicals (0.95%)
CK Witco Corporation 7,000 93,625
------------
Commercial Banking (4.39%)
Commerce Bancorp<F*> 3,650 147,595
First Tennessee National
Corp. 3,400 96,900
Firstar Corporation 9,000 190,125
------------
434,620
------------
Consumer Durables (2.82%)
Furniture Brands Interna-
tional<F*> 7,500 165,000
Lennar Corp. 7,055 114,644
------------
279,644
------------
Domestic Oil (2.42%)
Basin Exploration Inc.<F*> 6,000 105,750
R & B Falcon Corp.<F*> 10,100 133,825
------------
239,575
------------
Drugs & Medicines (16.87%)
Beckman Instruments 2,310 117,521
Express Scripts Inc.<F*> 4,400 281,600
Idec Pharmaceuticals
Corp.<F*> 8,000 786,000
Immunex Corp.<F*> 4,000 438,000
Total Renal Care Holdings<F*> 7,000 46,809
------------
1,669,930
------------
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Electronics (5.22%)
Dallas Semiconductor Corp. 5,700 $ 367,291
Globalstar Telecommunications
Ltd.<F*> 3,400 149,600
------------
516,891
------------
Energy & Utilities (0.63%)
CMS Energy Corp. 2,000 62,374
------------
Finance (Non-Banking) (2.67%)
Affiliated Managers Group<F*> 4,500 181,967
Charter One Financial Inc. 4,314 82,505
------------
264,472
------------
Food & Agriculture (2.97%)
The Earthgrains Co. 6,000 96,750
Suiza Foods Corp.<F*> 5,000 198,125
------------
294,875
------------
<PAGE>
Industrial Miscellaneous (1.54%)
Diamond Offshore Drilling
Inc. 5,000 152,810
------------
Insurance (2.98%)
Enhance Financial Services
Group 6,000 97,500
Radian Group 2,600 124,150
ESG Re Ltd.<F*> 10,500 72,839
------------
294,489
------------
Media (3.41%)
Adelphia Communications
Class A<F*> 3,000 196,875
Primedia Inc.<F*> 8,500 140,250
------------
337,125
------------
<CAPTION>
Miscellaneous & Conglomerates (0.92%)
<S> <C> <C>
Pinnacle West Capital 3,000 91,686
------------
Non-Ferrous Metals (1.19%)
Tredegar Industries Inc. 5,700 117,916
------------
Paper & Forest Products (2.73%)
Bowater Inc. 2,000 108,624
Pentair Inc. 4,200 161,700
------------
270,324
------------
Retail (8.09%)
Ethan Allen Interiors 5,550 177,944
Kroger Co.<F*> 8,000 151,000
Payless Shoesource 3,200 150,400
Zale Corp.<F*> 6,600 319,275
------------
798,619
------------
(continued)
46
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Telephone (4.48%)
Advanced Communications
Group<F*> 10,000 $ 136,250
ICG Communications Inc.<F*> 7,500 140,625
Nextlink Communications Inc-A 2,000 166,124
------------
442,999
------------
TOTAL COMMON STOCK (94.89%)
(COST $6,625,469) 9,392,291
------------
<CAPTION>
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (6.29%)
Merrill Lynch & Co.,
5.57%, due 1/24/2000 $100,000 $ 99,645
Countrywide Home Loans,
5.26%, due 1/7/2000 125,000 124,891
Centennial Energy Holdings,
7.13%, due 1/21/2000 400,000 398,422
------------
622,958
------------
<S> <C>
TOTAL SHORT TERM SECURITIES (6.29%)
(AMORTIZED COST $622,958) 622,958
------------
TOTAL INVESTMENTS (101.18%)
(AMORTIZED COST $7,248,427) 10,015,249
Other net liabilities (-1.18%) -116,964
------------
TOTAL NET ASSETS (100.00%) $ 9,898,285
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
47
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Small-Cap Equity Fund had a difficult year in 1999 as it reported negative
returns. In general, the small-cap sector of the market underperformed the
larger cap stocks for the year. Although some small cap sectors of the stock
market began to rebound in the forth quarter, the Fund is not well represented
in these areas due to the adherence to its strategy. Even in this sector of
the market, style and size differences proved to be important characteristics.
The Fund uses the smallest 20 percent of the companies listed on the New York
Stock Exchange as its proxy. It re-balances against this universe of stocks
every five years. As a result of this construction process, the fund has less
exposure to technology stocks than other small-cap indexes. The fund is also
at the smaller end of the capitalization range, in a market where larger
companies have appreciated more in price. Small-cap stock valuations remain
compelling at current levels and should provide opportunities for attractive
returns going forward.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
- -------------------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR LIFE OF FUND<F*>
<S> <C> <C>
Annual Returns (3.93%) 4.88%
<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.
48
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
<TABLE>
- -------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
December 31, 1999
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common Stocks $70,327,212
Preferred Stocks 20,859
Short term securities 3,059,968
-----------
Total investments 73,408,039
Cash 11,173
Dividends receivable 83,425
-----------
Total assets 73,502,637
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 15,313
Payable to General American Life
Insurance Company 3,063
-----------
Total liabilities 18,376
-----------
Total net assets $73,484,261
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,756,234
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 41.84
TOTAL AMORTIZED COST OF INVESTMENTS $70,990,258
</TABLE>
<TABLE>
- -------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the year ended December 31, 1999
INVESTMENT INCOME:
Dividends $ 777,437
Interest 51,583
-----------
Total investment income 829,020
-----------
EXPENSES:
Investment management charge 172,379
Administrative charge 34,476
-----------
Total expenses 206,855
-----------
Net investment income 622,165
-----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 2,262,058
-----------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (5,135,892)
-----------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(2,251,669)
===========
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED
YEAR ENDED ENDED
DECEMBER 31 DECEMBER 31
----------- ------------
1999 1998
----------- ------------
<S> <C> <C>
Operations:
Net investment income $ 622,165 $ 586,668
Net realized gain on investments 2,262,058 2,415,099
Net unrealized loss on investments (5,135,892) (10,899,956)
----------- ------------
Net decrease in net assets from operations (2,251,669) (7,898,189)
Capital share transactions 2,742,426 3,246,171
----------- ------------
Net increase (decrease) in net assets 490,757 (4,652,018)
Net assets, beginning of period 72,993,504 77,645,522
----------- ------------
Net assets, end of period $73,484,261 $ 72,993,504
=========== ============
</TABLE>
See accompanying notes to the financial statements.
49
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
EIGHT MONTHS
ENDED
YEAR ENDED YEAR ENDED DECEMBER
DECEMBER 31 DECEMBER 31 31<F*>
----------- ----------- ------------
1999 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 0.38 0.35 0.29
Net realized and unrealized gain (loss) on investments (2.09) (5.07) 11.14
------- ------- -------
Net increase (decrease) in asset value per share (1.71) (4.72) 11.43
------- ------- -------
Net asset value, end of period $ 41.84 $ 43.55 $ 48.27
======= ======= =======
Total return <F2> (3.93%) (9.78%) 31.03%
Net assets, end of period (in thousands) $73,484 $72,994 $77,646
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 0.89% 0.76% 0.97%
Portfolio turnover rate 23.11% 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.
<F*> Small-Cap Equity Fund began operations May 1, 1997. 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.
</TABLE>
See accompanying notes to the financial statements.
50
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
<TABLE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Aerospace & Military Technology (1.88%)
<S> <C> <C>
Aviall Inc.<F*> 47,200 $ 386,425
Edo Corp. 13,500 79,312
Fairchild Corp.<F*> 45,474 412,085
Hexcel Corp.<F*> 17,717 98,542
Transtechnology Corp. 12,400 137,169
United Industrial Corp. 29,200 270,100
------------
1,383,633
------------
Air Transport (1.80%)
Continental Airlines<F*> 29,900 1,323,075
------------
Apparel (1.79%)
Chic By HIS Inc.<F*> 22,300 13,938
Dyersburg Corp. 32,300 28,263
Galey & Lord Inc.<F*> 28,200 54,623
Genesco Inc.<F*> 58,400 759,200
Johnson Industries Inc. 23,900 40,319
Pillowtex Corp. 25,600 158,387
Syms Corp.<F*> 41,100 205,500
Tultex Corp.<F*> 67,900 2,716
Worldtex Inc. <F*> 33,410 52,186
------------
1,315,132
------------
Business Machines (1.80%)
Applied Magnetics Corp.<F*> 52,085 19,532
ECC International<F*> 13,325 43,306
Environmental Elements
Corp.<F*> 7,100 16,415
Esterline Technologies
Corp.<F*> 31,300 361,891
Genesis Worldwide Inc. 8,500 27,090
Gleason Corp. 25,100 583,575
Nashua Corp.<F*> 14,700 110,250
Par Technology<F*> 18,000 85,500
QMS Inc.<F*> 24,900 73,131
------------
1,320,690
------------
Business Services (6.29%)
Bush Industries 22,650 389,286
Computer Task Group 49,400 731,713
Dycom Industries<F*> 31,200 1,374,734
E4L Inc.<F*> 34,300 85,750
ITT Educational Services
Inc.<F*> 65,650 1,013,439
Rightchoice Managed Care<F*> 7,300 83,950
TRC Companies Inc.<F*> 4,000 30,748
URS Corp.<F*> 17,141 371,759
Wackenhut Corp-Class A 23,000 343,550
Wackenhut Corp-Class B 18,118 186,833
Zap.com Corporation<F*> 1,522 8,752
------------
4,620,514
------------
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Chemicals (1.27%)
LSB Industries Inc. 7,200 $ 10,122
Oil-Dri Corp. 16,900 242,938
Wynn's International Inc. 48,204 680,896
------------
933,956
------------
Commercial Banking (2.36%)
American Banknote Corp.<F*> 38,100 1,753
First Banks America Inc.<F*> 4,000 72,500
Firstfed Financial<F*> 50,600 711,537
Oriental Financial Group 31,200 688,334
Sterling Bancorp 16,275 260,400
------------
1,734,524
------------
Construction (8.62%)
Beazer Homes USA Inc.<F*> 22,600 435,050
Berlitz International<F*> 24,100 414,207
Cavalier Homes Inc. 26,612 104,771
Congoleum Corp.<F*> 9,700 38,800
Corrpro Companies Inc.<F*> 23,000 135,125
Elcor Corp. 47,625 1,434,703
Giant Group Ltd.<F*> 11,850 41,475
International Aluminum Corp. 10,600 249,100
Kaiser Group International<F*> 12,800 4,800
MDC Holings Inc. 46,500 729,446
M/I Schottenstein Homes Inc. 21,100 328,358
Nortek<F*> 30,200 845,600
Puerto Rican Cement Co Inc. 14,100 479,400
Robertson Ceco Corp.<F*> 37,800 373,275
Terex Corp.<F*> 25,100 696,525
Washington Homes Inc.<F*> 4,100 20,500
------------
6,331,135
------------
Consumer Durables (4.43%)
Craig Corp.<F*> 9,900 68,063
Crown Crafts Inc. 19,600 56,350
Oneida Ltd. 39,919 868,238
Royal Appliance Mfg Co.<F*> 56,800 276,900
SL Industries Inc. 14,608 169,818
Starrett LS 16,900 379,185
Thomas Industries 36,250 740,841
Windmere<F*> 41,000 697,000
------------
3,256,395
------------
Domestic Oil (4.09%)
Cross Timbers Royalty Trust 13,900 137,262
Frontier Oil Corp.<F*> 63,300 427,274
Getty Realty Corp. 29,000 324,423
Giant Industries 28,600 239,525
HS Resources Inc.<F*> 26,500 457,125
Kaneb Services<F*> 76,300 333,813
(continued)
51
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
RPC Energy Services Inc. 64,000 $ 368,000
Swift Energy Co.<F*> 17,975 206,736
Tokheim Corp.<F*> 18,900 68,513
Unit Corp.<F*> 50,700 389,731
Wiser Oil Co. 21,600 54,000
------------
3,006,402
------------
Drugs & Medicines (3.21%)
Advocat Inc.<F*> 10,900 10,900
Comprehensive Care<F*> 5,100 1,580
Cooper Co. Inc.<F*> 27,700 834,463
GRC International<F*> 21,800 258,875
Graham Field Health
Products<F*> 30,329 3,791
Molecular Biosystems<F*> 27,800 27,800
OEC Medical Systems<F*> 30,300 1,049,138
Pharmaceutical Resources<F*> 35,100 173,289
------------
2,359,836
------------
Electronics (11.53%)
American Precision
Industries<F*> 16,500 142,312
Bell Industries Inc.<F*> 20,511 152,548
CTS Corp. 75,504 5,691,114
Chyron Corp.<F*> 59,700 89,550
Esco Electronics Corp.<F*> 25,800 299,925
Entrade Inc. 16,300 666,263
Kollmorgen Corp. 22,700 279,482
Rex Stores Corp.<F*> 22,000 770,000
Sparton<F*> 16,900 89,773
Tech-Sym<F*> 14,000 288,750
------------
8,469,717
------------
Energy & Utilities (1.73%)
Aquarion Company 24,049 889,850
Cascade Natural Gas Corp. 21,700 349,912
Pittston Minerals Group 19,500 31,688
------------
1,271,450
------------
Energy Raw Materials (0.55%)
Wilshire Oil Co. Of Texas<F*> 14,192 53,220
Zapata Corp. 76,140 352,148
------------
405,368
------------
Finance (Non-Banking) (4.90%)
Advest Group 20,800 382,200
Atlanta Sosnoff Capital 20,300 172,550
Bluegreen Corp.<F*> 47,448 237,240
DVI<F*> 16,300 247,548
Duff & Phelps Credit Rating 13,800 1,227,331
First Republic Bank<F*> 18,360 431,460
Hallwood<F*> 8,050 98,105
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Finance (Non-Banking) (continued)
National Discount Brokers
Group<F*> 30,600 $ 807,075
------------
3,603,509
------------
Food & Agriculture (5.08%)
CKE Restaurants Inc. 79,471 466,892
Cooker Restaurant Corp. 17,100 49,163
Jack In The Box<F*> 93,900 1,942,509
RLI Corp. 22,737 773,058
Sara Lee Corp. 12,332 272,069
TCBY Enterprises 59,200 225,670
------------
3,729,361
------------
Industrial Miscellaneous (0.27%)
IT Group Inc.<F*> 21,621 198,632
------------
<PAGE>
Insurance (3.27%)
Acceptance Insurance Co.<F*> 24,928 144,881
Fidelity National Financial
Inc. 47,132 677,537
Hilb, Rogal And Hamilton Co. 35,500 1,002,875
MMI Companies Inc. 20,700 178,538
Stewart Info Services 30,200 402,022
------------
2,405,853
------------
Media (1.89%)
Playboy Enterprises<F*> 11,500 235,750
Playboy Enterprises 'B'<F*> 47,300 1,149,958
------------
1,385,708
------------
Miscellaneous Finance (0.16%)
Stifel Financial 12,064 119,132
------------
Motor Vehicles (0.88%)
Coachmen Industries Inc. 36,000 544,500
Lamson & Sessions Co.<F*> 21,300 103,838
------------
648,338
------------
<CAPTION>
Non-Durables & Entertainment (0.21%)
<S> <C> <C>
John Q Hammons Hotels<F*> 15,200 58,900
J. Alexanders Corp.<F*> 9,000 28,125
Tandycrafts Inc.<F*> 22,900 70,120
------------
157,145
------------
Non-Ferrous Metals (1.24%)
Nord Resources Corp.<F*> 33,800 5,070
RTI International Metals<F*> 37,100 278,250
Tremont Corp. 17,600 264,000
United Park City Mines Co.<F*> 7,240 200,910
Zemex Corp.<F*> 17,488 159,578
------------
907,808
------------
(continued)
52
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Paper & Forest Products (0.81%)
Chesapeake Utilities Corp. 9,000 $ 165,375
Republic Group Inc. 28,329 428,476
------------
593,851
------------
Producer Goods (8.36%)
Acme Electric Corp.<F*> 12,000 69,000
Aeroflex<F*> 28,584 296,568
Allied Products Corp. 32,950 117,368
Ameron International 9,800 387,708
Ampco-Pittsburgh Corp. 22,400 226,800
Bairnco Corp. 24,000 144,000
Brown & Sharpe Mfg. Co.<F*> 10,400 22,100
Chase Industries Inc.<F*> 35,100 285,188
Coastcast<F*> 21,600 359,100
Fansteel Inc.<F*> 11,700 45,338
Genrad Inc.<F*> 46,500 749,813
Hughes Supply Inc. 22,150 477,598
Insteel Industries 17,200 155,866
Katy Inds Inc. 21,600 187,639
Mestek Inc.<F*> 21,800 441,450
National-Standard Co.<F*> 6,400 20,000
SPS Technologies Inc.<F*> 27,000 862,299
Sequa Corp.<F*> 8,700 522,000
Spartech Corp. 21,300 686,925
Twin Disc Inc. 7,300 86,688
------------
6,143,448
------------
Railroads & Shipping (1.41%)
Sea Containers Ltd. 7,000 185,058
Sea Containers Ltd. - Class A 26,869 715,414
Todd Shipyards Corp.<F*> 17,500 137,813
------------
1,038,285
------------
Real Estate (0.24%)
Amrep Corp.<F*> 16,900 80,275
Grubb & Ellis Co.<F*> 19,700 92,334
------------
172,609
------------
Retail (6.54%)
Catalina Lighting Inc.<F*> 6,500 31,278
Chart House Enterprises<F*> 19,000 84,303
Cole National Corp.<F*> 23,500 117,500
Kenneth Cole Productions-A<F*> 31,500 1,441,125
Converse Inc.<F*> 38,200 52,525
Gottschalks Inc.<F*> 14,700 109,324
Intertan Inc.<F*> 24,400 637,450
Jo-ann Stores Inc.-Class A<F*> 22,500 253,125
Mortons Restaurant Group<F*> 15,500 240,250
Piccadilly Cafeterias Inc. 25,200 100,800
Rowe Furniture Corp. 36,200 305,419
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Retail (continued)
Sizzler International Inc.<F*> 63,500 $ 158,750
Sport Supply Group Inc.<F*> 16,000 110,000
Tyler Technologies<F*> 45,900 252,450
Uno Restaurant Corp.<F*> 29,535 328,577
Watsco Inc. 33,625 388,772
World Fuel Services Corp. 25,725 192,938
------------
4,804,586
------------
Soaps & Cosmetics (0.00%)
Scott's Liquid Gold Inc. 3,400 2,441
------------
Steel (2.37%)
Huntco Inc. 12,800 40,794
Keystone Consolidated
Industries<F*> 12,700 75,400
NS Group Inc.<F*> 33,600 256,200
Reliance Steel & Aluminum 58,300 1,366,377
------------
1,738,771
------------
Tobacco (1.01%)
Brooke Group Ltd. 44,435 663,726
Standard Commercial Corp. 22,144 78,877
------------
742,603
------------
Travel & Recreation (0.47%)
Jackpot Enterprises<F*> 22,419 186,347
PS Group Holdings Inc. 13,900 156,375
------------
342,722
------------
Trucking & Freight (0.33%)
International Shipholding 15,525 180,478
Matlack Systems Inc.<F*> 19,900 64,675
------------
245,153
------------
Utilities, Electrical & Gas (4.92%)
American States Water Company 19,000 684,000
Bangor Hydro Electric<F*> 17,400 283,828
Central Vermont Public Service 28,100 298,563
Chart Industries 52,824 211,300
Green Mountain Power Corp. 10,700 79,576
Nui Corp. 21,900 577,613
St. Joseph Light & Power 19,100 391,550
TNP Enterprises Inc. 26,400 1,089,000
------------
3,615,430
------------
TOTAL COMMON STOCK (95.71%)
(COST $67,901,660) 70,327,212
------------
(continued)
53
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
---------------------------------------------------------
PAR MARKET
CONTINGENT RIGHTS VALUE VALUE
---------------------------------------------------------
<S> <C> <C>
(0.00%)
Hills Store Value Rights $ 14,300 $ 0
Wahlco Litigation Rights 1,100 0
------------
0
------------
TOTAL (0.00%)
(AMORTIZED COST $0) 0
------------
<CAPTION>
---------------------------------------------------------
MARKET
PREFERRED STOCK SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
Preferred (0.03%)
O'Sullivan Industries 40,900 20,859
------------
TOTAL (0.03%)
(AMORTIZED COST $28,630) 20,859
------------
<CAPTION>
---------------------------------------------------------
PAR MARKET
SHORT TERM INVESTMENTS VALUE VALUE
---------------------------------------------------------
<S> <C> <C>
Commercial Paper (4.16%)
Countrywide Home Loans,
5.35%, due 1/6/2000 $1,450,000 $ 1,448,923
Centennial Energy Holdings,
7.22%, due 1/14/2000 1,615,000 1,611,045
------------
3,059,968
------------
TOTAL SHORT TERM SECURITIES (4.16%)
(AMORTIZED COST $3,059,968) 3,059,968
------------
TOTAL INVESTMENTS (99.90%)
(AMORTIZED COST
$70,990,258) $ 73,408,039
Other net assets (0.10%) 76,222
------------
TOTAL NET ASSETS (100.00%) $ 73,484,261
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
54
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December
31, 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 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. On
January 6, 2000, Metropolitan Life Insurance Company (MetLife), headquartered
in New York City, purchased 100% of GenAmerica Corporation (the Company) for
$1.2 billion in cash. The acquisition was a result of liquidity problems
encountered by the Company's wholly-owned subsidiary General American Life
Insurance Company (General American) during 1999.
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 December
31. 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 December 31, resulting from changes in the
exchange rate.
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
55
<PAGE>
losses on such contracts offset losses and gains, respectively, on the
assets being hedged. At December 31, 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 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 December 31, 1999, the Company had no open U.S. Treasury Bond or S&P 500
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
December 31, 1999, the Bond Index Fund had an accumulated capital loss
carryforward for tax purposes of $2,116,060. Of this amount, $1,702,964,
$182,350, and $230,746 will expire on December 31, 2002, 2003, and 2007
respectively; the Mid-Cap Equity Fund had an accumulated capital loss
carryforward for tax purposes of $333,707 expiring on December 31, 2007;
the International Index Fund had an accumulated capital loss carryforward
for tax purposes of $1,219 expiring on December 31, 2007.
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
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:
<PAGE>
TABLE>
[CAPTION]
INVESTMENT
ASSETS FEE
[S] [C]
--------------------------------------------------
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
56
<PAGE>
<PAGE>
that Fund. The percentages decrease with respect to assets of the fund above
certain amounts as follows:
<TABLE>
<CAPTION>
INVESTMENT
ASSETS FEE
<S> <C>
--------------------------------------------------
First $10 million .50%
Next $10 million .40%
Balance over $20 million .30%
</TABLE>
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:
<TABLE>
<CAPTION>
INVESTMENT
ASSETS FEE
<S> <C>
--------------------------------------------------
First $10 million .55%
Next $10 million .45%
Balance over $20 million .40%
</TABLE>
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.
NOTE 5--INVESTMENTS
The amortized cost of investments for federal income tax purposes as of
December 31, 1999, is as follows:
<PAGE>
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED
INDEX MARKET INDEX EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Bonds $ -0- $ -0- $71,475,518 $ -0-
Common stocks 457,283,860 -0- -0- 42,280,727
Preferred stocks -0- -0- -0- -0-
Short term
securities 2,879,272 255,777,381 1,773,644 6,660,164
------------ ------------ ----------- -----------
Total $460,163,132 $255,777,381 $73,249,162 $48,940,891
============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Bonds $ 23,524,548 $ -0- $ -0- $ -0-
Common stocks 59,700,691 8,828,676 6,625,469 67,901,660
Preferred stocks 1,070,000 -0- -0- 28,630
Warrants -0- 2,064 -0- -0-
Short term
securities 6,665,640 199,440 622,958 3,059,968
------------ ------------ ----------- -----------
Total $ 90,960,879 $ 9,030,180 $ 7,248,427 $70,990,258
============ ============ =========== ===========
</TABLE>
57
<PAGE>
<PAGE>
Gross unrealized gains and losses by fund for the period ended December 31,
1999 excluding the Money Market Fund, which has an immaterial amount of
unrealized gain which is classified as interest income, are as follows:
<TABLE>
<CAPTION>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
Unrealized gains $469,876,787 $ 205,585 $20,271,052
Unrealized losses 31,994,202 3,645,321 4,039,214
------------ ----------- -----------
Net unrealized
gain (loss) on
investments $437,882,585 $(3,439,736) $16,231,838
============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Unrealized gains $ 64,627,755 $ 7,051,525 $ 3,644,282 $20,457,090
Unrealized losses 3,386,755 2,021,618 877,460 18,039,309
------------ ------------ ----------- -----------
Net unrealized
gain on
investments $ 61,241,000 $ 5,029,907 $ 2,766,822 $ 2,417,781
============ ============ =========== ===========
</TABLE>
The "specific identification" method is used to determine the cost of
securities sold.
Purchases and proceeds from sales and maturities of other than short term
securities and United States government obligations for the period ended
December 31, 1999 were as follows:
<TABLE>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
Purchases $159,744,484 $16,648,463 $ 9,431,011
============ =========== ===========
Sales and
Maturities $105,366,365 $ 7,947,898 $12,287,244
============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ 15,359,724 $ 3,245,891 $ 1,907,056 $16,510,760
============ ============ =========== ===========
Sales and
Maturities $ 14,226,808 $ 2,836,137 $ 2,099,638 $15,876,510
============ ============ =========== ===========
</TABLE>
Purchases and proceeds from sales and maturities of United States government
obligations for the period ended December 31, 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- $11,290,789 $ -0-
============ ============ =========== ===========
Sales and
Maturities $ -0- $ -0- $12,253,566 $ -0-
============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ 3,283,453 $ -0- $ -0- $ -0-
============ ============ =========== ===========
Sales and
Maturities $ 1,150,000 $ -0- $ -0- $ -0-
============ ============ =========== ===========
</TABLE>
NOTE 6--CAPITAL STOCK
As of December 31, 1999, in the aggregate, there were five hundred million
(500,000,000) shares of $.01 par value capital stock authorized.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
S & P 500 INDEX FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 2,229,547 $ 120,801,525 2,744,937 $ 120,213,688
Shares redeemed (1,340,916) (72,982,746) (1,602,118) (70,940,064)
----------- ------------- ----------- -------------
Net increase 888,631 $ 47,818,779 1,142,819 $ 49,273,624
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 19,793,694 $ 390,585,161 15,897,608 $ 297,646,784
Shares redeemed (19,355,827) (382,586,268) (13,265,822) (248,469,980)
----------- ------------- ----------- -------------
Net increase 437,867 $ 7,998,893 2,631,786 $ 49,176,804
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
BOND INDEX FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 918,585 $ 22,788,862 1,222,833 $ 29,466,002
Shares redeemed (760,971) (18,773,314) (560,371) (13,582,327)
----------- ------------- ----------- -------------
Net increase 157,614 $ 4,015,548 662,462 $ 15,883,675
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
MANAGED EQUITY FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 454,594 $ 16,267,788 282,811 $ 9,251,458
Shares redeemed (426,521) (15,654,170) (443,481) (14,502,043)
----------- ------------- ----------- -------------
Net increase/
(decrease) 28,073 $ 613,618 (160,670) $ (5,250,585)
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
ASSET ALLOCATION FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 447,962 $ 18,307,872 456,190 $ 15,401,821
Shares redeemed (481,295) (19,546,774) (632,758) (20,770,991)
----------- ------------- ----------- -------------
Net decrease (33,333) $ (1,238,902) (176,568) $ (5,369,170)
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INDEX FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 71,856 $ 1,535,707 96,834 $ 1,801,096
Shares redeemed (59,924) (1,291,923) (66,500) (1,220,064)
----------- ------------- ----------- -------------
Net increase 11,932 $ 243,784 30,334 $ 581,032
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
MID-CAP EQUITY FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 102,443 $ 2,189,769 142,877 $ 3,176,924
Shares redeemed (95,869) (2,030,407) (60,925) (1,283,461)
----------- ------------- ----------- -------------
Net increase 6,574 $ 159,362 81,952 $ 1,893,463
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
SMALL-CAP EQUITY FUND
---------------------------------------------------------
Year ended Year ended
December 31, 1999 December 31, 1998
--------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 431,691 $ 17,701,638 252,394 $ 11,970,218
Shares redeemed (351,469) (14,959,212) (184,849) (8,724,047)
----------- ------------- ----------- -------------
Net increase 80,222 $ 2,742,426 67,545 $ 3,246,171
=========== ============= =========== =============
</TABLE>
58
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
December 31, 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.
59
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<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - S & P 500 Index Fund
<NUMBER> 1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 460,163
<INVESTMENTS-AT-VALUE> 898,046
<RECEIVABLES> 666
<ASSETS-OTHER> 200
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 898,912
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 223
<TOTAL-LIABILITIES> 223
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 14,763
<SHARES-COMMON-PRIOR> 13,875
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 898,689
<DIVIDEND-INCOME> 10,049
<INTEREST-INCOME> 120
<OTHER-INCOME> 0
<EXPENSES-NET> 2,363
<NET-INVESTMENT-INCOME> 7,806
<REALIZED-GAINS-CURRENT> 53,583
<APPREC-INCREASE-CURRENT> 88,991
<NET-CHANGE-FROM-OPS> 150,380
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,230
<NUMBER-OF-SHARES-REDEEMED> (1,341)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 198,199
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,969
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,363
<AVERAGE-NET-ASSETS> 785,338
<PER-SHARE-NAV-BEGIN> 50.490
<PER-SHARE-NII> 0.540
<PER-SHARE-GAIN-APPREC> 9.840
<PER-SHARE-DIVIDEND> 0.000
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<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 60.870
<EXPENSE-RATIO> 0.300
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Money Market Fund
<NUMBER> 2
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 255,777
<INVESTMENTS-AT-VALUE> 255,782
<RECEIVABLES> 398
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 256,183
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43
<TOTAL-LIABILITIES> 43
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 12,647
<SHARES-COMMON-PRIOR> 12,210
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 256,140
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 13,623
<OTHER-INCOME> 0
<EXPENSES-NET> 528
<NET-INVESTMENT-INCOME> 13,095
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 13,095
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,794
<NUMBER-OF-SHARES-REDEEMED> (19,356)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 21,094
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 322
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 528
<AVERAGE-NET-ASSETS> 257,682
<PER-SHARE-NAV-BEGIN> 19.250
<PER-SHARE-NII> 1.000
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 20.250
<EXPENSE-RATIO> 0.210
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Bond Index Fund
<NUMBER> 3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 73,249
<INVESTMENTS-AT-VALUE> 69,809
<RECEIVABLES> 1,245
<ASSETS-OTHER> 5
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 71,059
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18
<TOTAL-LIABILITIES> 18
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,904
<SHARES-COMMON-PRIOR> 2,746
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 71,041
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,348
<OTHER-INCOME> 0
<EXPENSES-NET> 215
<NET-INVESTMENT-INCOME> 4,133
<REALIZED-GAINS-CURRENT> (231)
<APPREC-INCREASE-CURRENT> (6,054)
<NET-CHANGE-FROM-OPS> (2,152)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 919
<NUMBER-OF-SHARES-REDEEMED> (761)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,864
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 180
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 216
<AVERAGE-NET-ASSETS> 71,903
<PER-SHARE-NAV-BEGIN> 25.190
<PER-SHARE-NII> 1.420
<PER-SHARE-GAIN-APPREC> (2.150)
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 24.460
<EXPENSE-RATIO> 0.300
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Managed Equity Fund
<NUMBER> 4
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 48,941
<INVESTMENTS-AT-VALUE> 65,173
<RECEIVABLES> 49
<ASSETS-OTHER> 12
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 65,234
<PAYABLE-FOR-SECURITIES> 501
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21
<TOTAL-LIABILITIES> 522
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 1,763
<SHARES-COMMON-PRIOR> 1,735
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 64,712
<DIVIDEND-INCOME> 827
<INTEREST-INCOME> 116
<OTHER-INCOME> 0
<EXPENSES-NET> 239
<NET-INVESTMENT-INCOME> 704
<REALIZED-GAINS-CURRENT> 2,449
<APPREC-INCREASE-CURRENT> (859)
<NET-CHANGE-FROM-OPS> 2,294
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 455
<NUMBER-OF-SHARES-REDEEMED> (427)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,908
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 239
<AVERAGE-NET-ASSETS> 61,504
<PER-SHARE-NAV-BEGIN> 35.630
<PER-SHARE-NII> 0.420
<PER-SHARE-GAIN-APPREC> 0.660
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 36.710
<EXPENSE-RATIO> 0.390
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Asset Allocation Fund
<NUMBER> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 90,961
<INVESTMENTS-AT-VALUE> 152,202
<RECEIVABLES> 478
<ASSETS-OTHER> 69
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 152,749
<PAYABLE-FOR-SECURITIES> 613
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 75
<TOTAL-LIABILITIES> 688
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 3,283
<SHARES-COMMON-PRIOR> 3,316
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 152,061
<DIVIDEND-INCOME> 920
<INTEREST-INCOME> 1,978
<OTHER-INCOME> 0
<EXPENSES-NET> 806
<NET-INVESTMENT-INCOME> 2,092
<REALIZED-GAINS-CURRENT> 43
<APPREC-INCREASE-CURRENT> 26,655
<NET-CHANGE-FROM-OPS> 28,790
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 448
<NUMBER-OF-SHARES-REDEEMED> (481)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 27,551
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 672
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 806
<AVERAGE-NET-ASSETS> 134,301
<PER-SHARE-NAV-BEGIN> 37.550
<PER-SHARE-NII> 0.630
<PER-SHARE-GAIN-APPREC> 8.140
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 46.320
<EXPENSE-RATIO> 0.600
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - International Index Fund
<NUMBER> 6
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 9,030
<INVESTMENTS-AT-VALUE> 14,060
<RECEIVABLES> 40
<ASSETS-OTHER> 20
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 14,120
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9
<TOTAL-LIABILITIES> 9
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 550
<SHARES-COMMON-PRIOR> 538
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 14,111
<DIVIDEND-INCOME> 220
<INTEREST-INCOME> 9
<OTHER-INCOME> 0
<EXPENSES-NET> 92
<NET-INVESTMENT-INCOME> 137
<REALIZED-GAINS-CURRENT> (1)
<APPREC-INCREASE-CURRENT> 3,036
<NET-CHANGE-FROM-OPS> 3,172
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 72
<NUMBER-OF-SHARES-REDEEMED> (60)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,416
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 57
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 92
<AVERAGE-NET-ASSETS> 11,734
<PER-SHARE-NAV-BEGIN> 19.870
<PER-SHARE-NII> 0.260
<PER-SHARE-GAIN-APPREC> 5.520
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 25.650
<EXPENSE-RATIO> 0.790
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Mid-Cap Equity Fund
<NUMBER> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 7,248
<INVESTMENTS-AT-VALUE> 10,015
<RECEIVABLES> 0
<ASSETS-OTHER> 41
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 10,056
<PAYABLE-FOR-SECURITIES> 153
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5
<TOTAL-LIABILITIES> 158
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 399
<SHARES-COMMON-PRIOR> 392
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 9,898
<DIVIDEND-INCOME> 38
<INTEREST-INCOME> 23
<OTHER-INCOME> 0
<EXPENSES-NET> 54
<NET-INVESTMENT-INCOME> 7
<REALIZED-GAINS-CURRENT> (334)
<APPREC-INCREASE-CURRENT> 1,533
<NET-CHANGE-FROM-OPS> 1,206
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 102
<NUMBER-OF-SHARES-REDEEMED> (96)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,365
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 46
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 54
<AVERAGE-NET-ASSETS> 8,450
<PER-SHARE-NAV-BEGIN> 21.750
<PER-SHARE-NII> 0.020
<PER-SHARE-GAIN-APPREC> 3.040
<PER-SHARE-DIVIDEND> 0.000
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<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 24.810
<EXPENSE-RATIO> 0.640
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> GACC - Small-Cap Equity Fund
<NUMBER> 8
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1999
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 70,990
<INVESTMENTS-AT-VALUE> 73,408
<RECEIVABLES> 84
<ASSETS-OTHER> 11
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 73,503
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19
<TOTAL-LIABILITIES> 19
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 1,756
<SHARES-COMMON-PRIOR> 1,676
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 73,484
<DIVIDEND-INCOME> 777
<INTEREST-INCOME> 52
<OTHER-INCOME> 0
<EXPENSES-NET> 207
<NET-INVESTMENT-INCOME> 622
<REALIZED-GAINS-CURRENT> 2,262
<APPREC-INCREASE-CURRENT> (5,136)
<NET-CHANGE-FROM-OPS> (2,252)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 432
<NUMBER-OF-SHARES-REDEEMED> (351)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 491
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 172
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 207
<AVERAGE-NET-ASSETS> 69,780
<PER-SHARE-NAV-BEGIN> 43.550
<PER-SHARE-NII> 0.380
<PER-SHARE-GAIN-APPREC> (2.090)
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 41.840
<EXPENSE-RATIO> 0.300
</TABLE>
