<PAGE>
Portfolio Manager's Letter
EXECUTIVE INVESTORS BLUE CHIP FUND
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Slower growth was good news for U.S. financial markets. As inflation concerns
receded, long-term interest rates fell substantially with the benchmark 30 year
U.S. Treasury bond yield declining from 7.88% to 6.62%. The prospect of slower
growth spurred broad stock market indices to numerous new highs as fears of an
overheating economy -- and the risk of further Federal Reserve tightening --
subsided. Stocks also benefitted from falling interest rates and continued
strong earnings growth. The financial markets, in general, reacted positively to
legislation to eliminate the Federal budget deficit over the next seven years.
During the first half of 1995, the Blue Chip Fund gained on a net asset value
basis 18.71%. During this period, dividends paid from net investment income
amounted to 13 cents per share. Our strategy of being sector neutral with a
broad representation of securities showed good results in the first six months.
The key to good performance this year has been careful stock selection. Focusing
on growth stocks rather than value stocks also helped performance. Securities
with good earnings gains were well rewarded by the investment community.
Large capitalization equities performed better than small capitalization
equities. Growth stocks as a group outperformed value stocks, as concerns about
an economic slowdown increased. Technology stocks were one of the better
performers in the first half of 1995. The semiconductor industry remains in a
strong expansion mode; demand from the computer, telecommunications and consumer
goods sectors continues to be very strong.
One strategy which has proven beneficial is a focus on stocks with international
exposure. Companies with significant international exposure showed strong price
increases in the first half as investors' fear of an economic slowdown in the
domestic economy heightened. Financial stocks also did quite well as interest
rates declined. Among the better performers in the Series were Federal National
Mortgage Association, a government sponsored mortgage originator, and Citicorp,
a money center bank that benefitted from its large international banking
exposure.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIG]
Patricia D. Poitra
Director of Equities
and Portfolio Manager
July 31, 1995
1
<PAGE>
Portfolio Manager's Letter
EXECUTIVE INVESTORS HIGH YIELD FUND
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
Positive returns in the equity market indicated a market consensus that low
inflation and a transition to slower growth are still compatible with good
earnings results in most companies and industries. The Executive Investors High
Yield Fund performed well during the first half of 1995 with a total return on a
net asset value basis of 10.88%, which compares favorably with a 9.72% return
for the average high yield fund according to Lipper Analytical Services. During
this period, dividends paid from net investment income amounted to 34 cents per
share.
Fixed income investors in search of yield have continued to commit money to the
market, which sparked a rally beginning early in the year. Led at first by
lower-rated and deferred coupon bonds, several industry sectors that had done
poorly in 1994, such as gaming and housing, rebounded. Other industries that
generally outperformed due to lower interest rates and regulatory developments
were finance, media/cable, telecommunications and energy.
Many companies sought to issue bonds under these favorable financing conditions.
The arrival of these new issues during the second quarter coincided with some
signs of a slowing economy. Market leadership began to change as the economic
outlook changed. One of the major developments so far in 1995 has been some
softening in bonds of cyclical industries such as metals, chemicals and forest
products. These industries have contributed to the performance of the Fund and
the high yield market during the past two years, but there has been some
evidence that the volume growth and pricing flexibility that they had enjoyed
may be ending. Despite ample cash for investment, investors have become more
risk averse and regard each company selectively, bidding up the stronger issues,
refusing to fund weaker credits and requiring better terms from those in the
middle tier. The result has been that as the second quarter progressed, the
higher rating categories outperformed. With 83.9% of the Fund's bonds rated
single B or better, the Executive Investors High Yield Fund was well positioned
for this development.
2
<PAGE>
We believe high yield bonds are positioned to perform well versus fixed income
alternatives over the balance of the year. We are unlikely to see the kind of
decisive downward move in interest rates that occurred in the first half of the
year. Although there is a higher credit risk associated with high yield bonds,
in a stable interest rate environment, they tend to outperform fixed income
alternatives by virtue of their higher income. Also, the economy appears to be
returning to a sustainable rate of growth after the pause we saw in the second
quarter. We expect that our credit oriented strategy of concentrating on stable
to improving bonds will continue to reward Fund shareholders.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIG]
George V. Ganter
Portfolio Manager
July 31, 1995
3
<PAGE>
Portfolio Manager's Letter
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
Dear Investor:
U.S. economic growth slowed during the first six months of 1995. In response to
the Federal Reserve's tightening of monetary policy, economic growth downshifted
from an unsustainable 5.1% fourth quarter pace to a more moderate 2.7% rate in
the first quarter of 1995. By Spring, the financial markets began to anticipate
an end to the Federal Reserve's interest rate hikes. The economic crisis in
Mexico, higher individual tax payments and excessive business inventories
further dampened the U.S. economy in the second quarter. By June, in a notable
reversal of opinion from six months earlier, the markets began to expect the
Federal Reserve to lower short-term interest rates to insure against the
possibility of a recession.
The municipal bond market rose during the first six months of 1995. Most of the
gain occurred during the first quarter of the year as new issuance of municipal
bonds fell by approximately 45% compared to the first quarter of 1994. During
the second quarter, several factors limited further improvement in the market.
First, concern about potential tax reform and a rallying equity market limited
investor interest in tax-exempt bonds. Second, new issue supply began to
increase, reaching an eighteen month high in June. Third, Orange County,
California's bankruptcy raised concerns about credit risk in the municipal bond
market and dramatically underscored the importance of insurance for municipal
bonds.
During the first half of 1995, the Executive Investors Insured Tax Exempt Fund
gained on a net asset value basis 10.51%. During this period, dividends paid
from net investment income amounted to 36 cents per share. The Fund's
performance benefitted from both emphasis on noncallable bonds (which appreciate
in price faster than callable bonds during market rallies) and by taking
advantage of short-term trading opportunities. The Fund generally remained fully
invested which maximized current income.
Looking forward, the uncertainty of potential tax reform over the next few years
is the main hurdle facing the tax-exempt bond market. The market has responded
to this uncertainty by becoming cheaper relative to taxable bonds. While it is
impossible to predict what might occur in Congress, at current levels, we
believe insured municipal bonds appear attractive for long-term investors.
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIG]
Clark D. Wagner
Chief Investment Officer
and Portfolio Manager
July 31, 1995
4
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS--95.5 %
BASIC INDUSTRY--8.5 %
300 Alcan Aluminum Ltd. $ 9,075 $ 77
100 Consolidated Papers, Inc. 5,762 49
100 Dow Chemical Company 7,187 62
200 Du Pont (E.I.) De Nemours & Company 13,750 117
100 Georgia Pacific Corporation 8,675 74
100 Inland Steel Industries, Inc. 3,050 26
100 International Paper Company 8,575 73
100 James River Corporation of Virginia 2,763 23
100 Mead Corporation 5,938 50
130 Minnesota Mining & Manufacturing Company 7,443 63
200 Monsanto Company 18,025 153
100 Nucor Corporation 5,350 45
100 Temple-Inland, Inc. 4,763 40
- ----------------------------------------------------------------------------------
100,356 852
- ----------------------------------------------------------------------------------
CAPITAL GOODS--11.1 %
100 Boeing Company 6,262 53
100 Browning-Ferris Industries, Inc. 3,612 31
100 Deere & Company 8,562 73
150 Dover Corporation 10,912 93
50 Eaton Corporation 2,906 25
100 Emerson Electric Company 7,150 61
100 Foster Wheeler Corporation 3,525 30
550 General Electric Company 31,006 263
75 Ingersoll-Rand Company 2,869 24
100 ITT Corporation 11,750 100
50 Loral Corporation 2,588 22
150 McDonnell Douglas Corporation 11,513 98
100 Raytheon Company 7,763 65
100 United Technologies Corporation 7,813 66
200 *Varity Corporation 8,800 75
150 WMX Technologies, Inc. 4,256 36
- ----------------------------------------------------------------------------------
131,287 1,115
- ----------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER DURABLES--2.7 %
100 Chrysler Corporation $ 4,787 $ 41
100 Corning, Inc. 3,275 28
350 Ford Motor Company 10,412 88
200 General Motors Corporation 9,375 80
150 Masco Corporation 4,050 34
- ----------------------------------------------------------------------------------
31,899 271
- ----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--21.9 %
250 Abbott Laboratories 10,125 86
100 American Home Products Corporation 7,737 66
150 Anheuser-Busch Companies, Inc. 8,531 72
150 Bristol-Myers Squibb Company 10,218 87
450 Coca-Cola Company 28,688 244
150 Columbia/HCA Healthcare Corporation 6,487 55
200 CPC International, Inc. 12,350 105
100 Eastman Kodak Company 6,062 51
100 Eli Lilly & Company 7,850 67
100 General Mills, Inc. 5,138 45
100 Gillette Company 4,462 38
200 Johnson & Johnson 13,525 115
200 Kellogg Company 14,275 121
150 Kimberly-Clark Corporation 8,981 76
400 Merck & Company, Inc. 19,600 166
100 Nike, Inc. 8,400 71
250 PepsiCo, Inc. 11,406 97
100 Pfizer, Inc. 9,238 78
350 Philip Morris Companies, Inc. 26,031 221
200 Procter & Gamble Company 14,375 122
100 *Ralcorp Holdings, Inc. 2,288 19
250 Sara Lee Corporation 7,125 61
100 Schering-Plough 4,413 37
50 Unilever N.V. 6,506 55
50 Warner-Lambert Company 4,319 37
- ----------------------------------------------------------------------------------
258,130 2,192
- ----------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CONSUMER SERVICES--8.7 %
100 Albertson's, Inc. $ 2,975 $ 25
200 *Bed Bath & Beyond, Inc. 4,850 42
100 Dayton Hudson Corporation 7,175 61
100 Gap, Inc. 3,488 30
150 Home Depot, Inc. 6,094 52
100 *Kroger Company 2,688 23
100 Marriott International, Inc. 3,588 30
100 May Department Stores Company 4,163 35
200 McDonald's Corporation 7,825 66
100 McGraw-Hill Companies, Inc. 7,588 64
150 Nordstrom, Inc. 6,206 53
300 *Price/Costco, Inc. 4,875 41
100 Rite Aid Corporation 2,563 22
100 Sears, Roebuck and Company 5,988 51
100 *Toys "R" Us, Inc. 2,925 25
100 *Viacom, Inc. Class "B" 4,638 40
600 Wal-Mart Stores, Inc. 16,050 136
150 Walt Disney Company 8,343 71
- ----------------------------------------------------------------------------------
102,022 867
- ----------------------------------------------------------------------------------
ENERGY--11.9 %
150 Amoco Corporation 9,993 85
150 Atlantic Richfield Company 16,462 140
200 Chevron Corporation 9,325 79
200 Enron Corporation 7,025 60
400 Exxon Corporation 28,250 240
100 Halliburton Company 3,575 30
50 Kerr-McGee Corporation 2,681 23
150 Mobil Corporation 14,400 122
100 Pacific Enterprises 2,450 21
225 Royal Dutch Petroleum Company 27,422 233
100 Schlumberger, Ltd. 6,213 53
100 Texaco, Inc. 6,563 55
200 Unocal Corporation 5,525 47
- ----------------------------------------------------------------------------------
139,884 1,188
- ----------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCIAL--8.6 %
150 American Express Company $ 5,268 $ 45
100 American International Group, Inc. 11,400 97
247 Banc One Corporation 7,966 68
100 Bank of New York Company, Inc. 4,037 34
150 BankAmerica Corporation 7,893 67
100 Chemical Banking Corporation 4,725 40
100 Citicorp 5,787 49
150 Federal National Mortgage Association 14,156 120
50 First Interstate Bancorp 4,013 35
100 First Union Corporation 4,525 38
50 Marsh & McLennan Companies, Inc. 4,056 34
100 Mellon Bank Corporation 4,163 35
150 NationsBank Corporation 8,044 68
200 Norwest Corporation 5,750 49
50 Wells Fargo & Company 9,013 77
- ----------------------------------------------------------------------------------
100,796 856
- ----------------------------------------------------------------------------------
TECHNOLOGY--12.1 %
450 A T & T Corp. 23,906 203
200 *Airtouch Communications, Inc. 5,700 48
100 Automatic Data Processing, Inc. 6,287 53
100 Cisco Systems, Inc. 5,056 43
150 *Compaq Computer Corporation 6,806 58
200 First Data Corporation 11,375 97
200 Hewlett-Packard Company 14,900 127
200 Intel Corporation 12,663 107
300 MCI Communications Corporation 6,600 56
200 *Microsoft Corporation 18,075 154
200 Motorola, Inc. 13,425 114
200 *National Semiconductor Corporation 5,550 47
100 *NETCOM On-Line Communication Services,
Inc. 2,550 22
250 *Oracle Corporation 9,656 82
- ----------------------------------------------------------------------------------
142,549 1,211
- ----------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
AMOUNT
INVESTED
SHARES OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION--.7 %
50 *AMR Corporation $ 3,731 $ 32
300 *Southern Pacific Rail Corporation 4,725 40
- -----------------------------------------------------------------------------------
8,456 72
- -----------------------------------------------------------------------------------
UTILITIES--9.3 %
200 Ameritech Corporation 8,800 75
150 Bell Atlantic Corporation 8,400 71
150 BellSouth Corporation 9,525 81
200 Carolina Power & Light Company 6,050 51
400 CINergy Corporation 10,500 90
200 Duke Power Company 8,300 70
250 FPL Group, Inc. 9,656 82
300 GTE Corporation 10,238 87
150 NYNEX Corporation 6,038 51
200 Pacific Telesis Group 5,350 45
200 PacifiCorp 3,750 32
200 SBC Communications, Inc. 9,525 82
200 Texas Utilities Company 6,875 58
150 US West, Inc. 6,244 53
- -----------------------------------------------------------------------------------
109,251 928
- -----------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost
$950,863) 1,124,630 9,552
- -----------------------------------------------------------------------------------
CONVERTIBLE BONDS--1.3 %
CONSUMER SERVICES
$ 20M Bell Sports Corp., 4 1/4%, 11/15/2000
(cost $15,314) 14,950 127
- -----------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $966,177) 96.8% 1,139,580 9,679
OTHER ASSETS, LESS LIABILITIES 3.2 37,794 321
- -----------------------------------------------------------------------------------
NET ASSETS 100.0% $1,177,374 $10,000
<CAPTION>
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
<FN>
*Non-income producing
</TABLE>
See notes to financial statements 9
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS--91.8%
AEROSPACE/DEFENSE--3.4%
$ 274M Dyncorp, PIK, 16%, 2003 $ 273,237 $ 177
250M Fairchild Industries, Inc., 12 1/4%,
1999 254,375 164
- ----------------------------------------------------------------------------------
527,612 341
- ----------------------------------------------------------------------------------
APPAREL/TEXTILES--2.5%
400M Westpoint Stevens, Inc., 9 3/8%, 2005 388,000 251
- ----------------------------------------------------------------------------------
AUTOMOTIVE--4.9%
400M JPS Automotive Products Corp., 11 1/8%,
2001 394,000 255
350M SPX Corp., 11 3/4%, 2002 366,187 237
- ----------------------------------------------------------------------------------
760,187 492
- ----------------------------------------------------------------------------------
BUILDING MATERIALS--.5%
185M Waxman Industries, Inc., 0%-12 3/4%,
2004 75,850 49
<CAPTION>
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
CHEMICALS--12.3%
425M Buckeye Cellulose, Inc., 10 1/4%, 2001 425,000 275
550M Harris Chemical North America, Inc.,
0%-10 1/4%, 2001 500,500 324
350M OSI Specialties, Inc., 9 1/4%, 2003 355,250 230
400M Rexene Corp., 11 3/4%, 2004 431,000 279
200M Synthetic Industries, Inc., 12 3/4%,
2002 201,000 130
- ----------------------------------------------------------------------------------
1,912,750 1,238
- ----------------------------------------------------------------------------------
CONGLOMERATES--1.6%
500M Semi-Tech Corp., 0%-11 1/2%, 2003 252,500 163
- ----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--1.7%
250M Calmar, Inc., 12%, 1997 257,500 167
- ----------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--1.2%
200M Fairfield Manufacturing, Inc., 11 3/8%,
2001 191,000 124
- ----------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
ELECTRICAL EQUIPMENT--3.5%
$ 450M Essex Group, Inc., 10%, 2003 $ 434,250 $ 281
44M Thermadyne Industries, Inc., 10 1/4%,
2002 42,900 28
62M Thermadyne Industries, Inc., 10 3/4%,
2003 59,830 38
- ----------------------------------------------------------------------------------
536,980 347
- ----------------------------------------------------------------------------------
ENERGY SERVICES--5.9%
300M Falcon Drilling Co., Inc., 12 1/2%, 2005 313,500 203
400M Giant Industries, Inc., 9 3/4%, 2003 390,000 252
223M Synergy Group, Inc., 9 1/2%, 2000 200,700 130
- ----------------------------------------------------------------------------------
904,200 585
- ----------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--.4%
300M +SHRP Capital Corp., 11 3/4%, 1999 75,000 49
- ----------------------------------------------------------------------------------
FINANCIAL SERVICES--2.7%
300M Lomas Mortgage, USA, 10 1/4%, 2002 210,750 136
200M Olympic Financial, Ltd., 13%, 2000 206,000 134
- ----------------------------------------------------------------------------------
416,750 270
- ----------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--2.1%
300M Fleming Co., Inc., 10 5/8%, 2001 317,250 205
- ----------------------------------------------------------------------------------
GAMING/LODGING--1.4%
220M Casino America, Inc., 11 1/2%, 2001 223,300 144
- ----------------------------------------------------------------------------------
HEALTHCARE--3.9%
300M Mediq/PRN Life Support Services, Inc.,
11 1/8%, 1999 283,500 184
300M National Medical Enterprises, Inc.,
10 1/8%, 2005 318,750 206
- ----------------------------------------------------------------------------------
602,250 390
- ----------------------------------------------------------------------------------
INSURANCE--.7%
100M Terra Nova Holdings, PLC, 10 3/4%, 2005 101,250 66
- ----------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA/CABLE TELEVISION--10.3%
$ 500M Bell Cablemedia, PLC, 0%-11.95%, 2004 $ 336,250 $ 217
300M Garden State Newspapers, Inc., 12%, 2004 301,500 195
250M Lamar Advertising, Inc., 11%, 2003 249,688 162
400M Outdoor Systems, Inc., 10 3/4%, 2003 386,000 250
300M Rogers Cablesystems, Inc., 10%, 2005
(Note 5) 309,375 200
- ----------------------------------------------------------------------------------
1,582,813 1,024
- ----------------------------------------------------------------------------------
MINING/METALS--10.6%
300M Carbide/Graphite Group, Inc., 11 1/2%,
2003 316,500 205
200M Gulf States Steel, Inc., 13 1/2%, 2003
(Note 5) 195,000 126
350M UCAR Global Enterprises, Inc., 12%, 2005 376,250 243
400M WCI Steel, Inc., 10 1/2%, 2002 392,000 254
400M Wheeling-Pittsburgh Steel Corp., 9 3/8%,
2003 365,000 236
- ----------------------------------------------------------------------------------
1,644,750 1,064
- ----------------------------------------------------------------------------------
MISCELLANEOUS--2.2%
350M +Acme Holdings, Inc., 11 3/4%, 2000 178,500 115
150M Monarch Acquisition Corp., 12 1/2%, 2003
(Note 5) 150,750 98
- ----------------------------------------------------------------------------------
329,250 213
- ----------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--8.5%
400M Gaylord Container Corp., 11 1/2%, 2001 427,000 276
200M Rainy River Forest Products Co., Inc.,
10 3/4%, 2001 209,000 135
350M S.D. Warren Co., Inc., 12%, 2004 379,750 246
300M Stone Container Corp., 9 7/8%, 2001 299,250 194
- ----------------------------------------------------------------------------------
1,315,000 851
- ----------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--2.7%
400M Penn Traffic Co., Inc., 10.65%, 2004 418,000 270
- ----------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
1M Barry's Jewelers, Inc., 12 5/8%, 1996 717
---
- ----------------------------------------------------------------------------------
TECHNOLOGY--1.0%
150M Lear Seating, Inc., 11 1/4%, 2000 156,750 101
- ----------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
AMOUNT
INVESTED
PRINCIPAL FOR EACH
AMOUNT OR $10,000 OF
SHARES SECURITY VALUE NET ASSETS
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
TELECOMMUNICATIONS--3.8%
$ 650M Echostar Communications Corp.,
0%-12 7/8%, 2004(a) $ 316,875 $ 205
250M Paging Network, Inc., 11 3/4%, 2002 270,312 175
- -----------------------------------------------------------------------------------
587,187 380
- -----------------------------------------------------------------------------------
TRANSPORTATION--4.0%
300M Moran Transportation Co., 11 3/4%, 2004 273,000 177
350M Trism, Inc., 10 3/4%, 2000 341,250 220
- -----------------------------------------------------------------------------------
614,250 397
- -----------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost
$14,734,899) 14,191,096 9,181
- -----------------------------------------------------------------------------------
COMMON STOCKS--.4%
ELECTRICAL EQUIPMENT--.1%
648 *Thermadyne Holdings Corporation 9,153 6
- -----------------------------------------------------------------------------------
FINANCIAL SERVICES--.3%
2,400 *Olympic Financial, Ltd. 40,050 26
- -----------------------------------------------------------------------------------
GAMING/LODGING--.0%
5,063 *Divi Hotels, Inc. 380
---
2,000 *Gold River Hotel & Casino Corp., Series
"B" 3,000 2
- -----------------------------------------------------------------------------------
3,380 2
- -----------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
1 *Barry's Jewelers, Inc. 3
---
- -----------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost
$150,046) 52,586 34
- -----------------------------------------------------------------------------------
PREFERRED STOCKS--5.0%
FINANCIAL SERVICES--2.0%
3,000 California Federal Bank, 10 5/8%, Series
"B" 321,000 207
- -----------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--1.7%
9,000 S.D. Warren Co., Inc., 14% 256,500 166
- -----------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.3%
200 PanAmSat Capital Corp., 12 3/4% 200,500 130
- -----------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost
$749,750) 778,000 503
- -----------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
June 30, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
AMOUNT
INVESTED
FOR EACH
$10,000 OF
WARRANTS SECURITY VALUE NET ASSETS
<CAPTION>
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
WARRANTS--.7%
BUILDING MATERIALS--.0%
5,900 *Waxman Industries, Inc. (expiring
6/1/04)(Note 5) $ 2,950 $ 2
- -----------------------------------------------------------------------------------
ENTERTAINMENT/LEISURE--.0%
800 *SHRP Capital Corp. (expiring
7/15/99)(Note 5)
--- ---
- -----------------------------------------------------------------------------------
GAMING/LODGING--.1%
717 *Casino America, Inc. (expiring
11/15/96) 179
---
200 *Gold River Finance Corp., Liquidating
Trust 3,000 2
1,800 *President Riverboat Casinos, Inc.
(expiring 9/23/96)(Note 5) 7,200 5
- -----------------------------------------------------------------------------------
10,379 7
- -----------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.4%
9,000 *S.D. Warren Co., Inc. (expiring
12/15/06)(Note 5) 54,000 35
- -----------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
100 *Payless Cashways, Inc. (expiring
11/1/96) 25
---
- -----------------------------------------------------------------------------------
TELECOMMUNICATIONS--.2%
3,900 *Echostar Communications Corp. (expiring
6/1/04) 43,875 28
- -----------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $14,362) 111,229 72
- -----------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $15,649,057) 97.9% 15,132,911 9,790
OTHER ASSETS, LESS LIABILITIES 2.1 325,031 210
- -----------------------------------------------------------------------------------
NET ASSETS 100.0% $ 15,457,942 $ 10,000
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
<FN>
*Non-income producing
+In default as to principal and/or interest (Note 6).
(a)Each unit consists of a $1,000 principal amount of 12 7/8% senior secured
discount note due 6/1/2004 and warrants to purchase six shares of Class
"A" common stock.
</TABLE>
14 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ----------------------------------------------------------------------------------
MUNICIPAL BONDS--97.0%
ALABAMA--4.7%
$ 575M Alabama Agricultural & Mechanical Univ.
Revs. 5 3/4%, 11/1/2012 $ 567,813 $ 472
- ----------------------------------------------------------------------------------
ARIZONA--4.1%
250M Maricopa County, Arizona Dev. Auth.
Hosp. Facs. Rev.
Samaritan Health Services Series "A" 7%,
12/1/2016 285,938 239
200M Maricopa County, Arizona Sch. Dist. No.
80 (Chandler) 6 1/4%, 7/1/2011 212,500 177
- ----------------------------------------------------------------------------------
498,438 416
- ----------------------------------------------------------------------------------
CALIFORNIA--14.9%
250M California State Univ. Fresno Assn. Inc.
Rev. 6%, 2/1/2009 254,375 212
Los Angeles County, Calif.
Transportation Comm. Sales Tax
Revenue:
100M 6 3/4%, 7/1/2001* 112,625 94
100M 6.9%, 7/1/2001* 113,500 94
250M San Francisco, Calif. City & County
Parking Auth. 7%, 6/1/2017 279,375 232
500M San Francisco, Calif. City & County
Redev. Agcy. 6 3/4%, 7/1/2015 530,000 441
250M San Jose, Calif. Redev. Agcy. 6%,
8/1/2015 250,313 208
250M Santa Ana, Calif. Finance Authority
6 1/4%, 7/1/2015 255,937 213
- ----------------------------------------------------------------------------------
1,796,125 1,494
- ----------------------------------------------------------------------------------
COLORADO--3.1%
350M Roaring Fork, Colorado General
Obligation 6.6%, 12/15/2014 367,063 306
- ----------------------------------------------------------------------------------
CONNECTICUT--3.5%
400M Connecticut State Special Tax Oblig.
Rev. 6.1%, 10/1/2011 415,000 345
- ----------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--.8%
90M District of Columbia General Obligation
Series "A" 6 7/8%, 6/1/2000* 99,337 83
- ----------------------------------------------------------------------------------
GEORGIA--.9%
100M Cherokee County, Ga. Water & Sewer Auth.
Rev. 7.1%, 8/1/2000* 112,750 94
- ----------------------------------------------------------------------------------
ILLINOIS--6.3%
100M Du Paige Water Commission, Illinois
Water Rev. 6 7/8%, 5/1/1997* 106,500 89
500M Illinois Dev. Fin. Auth. Rev. (Rockford
School 205) 6.55%, 2/1/2009 533,750 444
100M Will County School District General
Obligation 7.1%, 12/1/2009 111,875 93
- ----------------------------------------------------------------------------------
752,125 626
- ----------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
June 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ----------------------------------------------------------------------------------
INDIANA--1.2%
$ 130M Delaware Cnty. Hosp. Auth. (Ball
Memorial Hosp.) 6 5/8%, 8/1/2006 $ 139,912 $ 116
- ----------------------------------------------------------------------------------
MAINE--2.2%
250M Maine Municipal Bond Bank 6 1/2%,
11/1/2014 262,500 218
- ----------------------------------------------------------------------------------
MASSACHUSETTS--4.1%
500M Mass. Bay Transn. Auth. Gen. Transn.
Sys. Series "A" 5.8%, 3/1/2013 496,875 413
- ----------------------------------------------------------------------------------
MICHIGAN--2.2%
1,000M Howell, Michigan Public Schools General
Obligation Zero Cpn. 5/1/2006* 261,250 217
- ----------------------------------------------------------------------------------
MISSOURI--6.2%
200M Liberty, Missouri Sewer System Rev.
6.15%, 2/1/2015 205,250 171
500M Missouri State Health & Educational
Facilities Authority
BJC Health Systems Series "A" 6 3/4%,
5/15/2010 545,000 453
- ----------------------------------------------------------------------------------
750,250 624
- ----------------------------------------------------------------------------------
NEVADA--.8%
80M Reno Hosp. Rev. (St. Mary's Hospital)
7 3/4%, 1/1/2000* 91,200 76
- ----------------------------------------------------------------------------------
NEW JERSEY--4.2%
485M New Jersey Housing & Mortgage Fin. Rev.
6.55%, 10/1/2010 499,550 416
- ----------------------------------------------------------------------------------
NEW YORK--6.3%
500M Erie County, New York General Obligation
Series "B" 5 1/2%, 6/15/2025 461,875 384
290M New York City Municipal Water Fin. Auth.
5 7/8%, 6/15/2012 292,175 243
- ----------------------------------------------------------------------------------
754,050 627
- ----------------------------------------------------------------------------------
PENNSYLVANIA--11.9%
200M Jeannette, Pa. School District General
Obligation 6.65%, 6/15/2001* 220,000 183
500M Pennsylvania State Ind. Dev. Auth.
5 1/2%, 1/1/2014 475,000 395
400M Pennsylvania State Turnpike Revenue
5 1/2%, 12/1/2012 382,500 318
350M Philadelphia, Pennsylvania Water &
Wastewater Revenue 6 1/4%, 8/1/2012 363,562 303
- ----------------------------------------------------------------------------------
1,441,062 1,199
- ----------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
- ----------------------------------------------------------------------------------
RHODE ISLAND--4.0%
<C> <S> <C> <C>
$ 250M Kent County, Rhode Island Water Auth.
Rev. 6.35%, 7/15/2014 $ 258,750 $ 215
200M Rhode Island Convention Center Authority
Series "A" 6.7%, 5/15/2001* 222,750 186
- ----------------------------------------------------------------------------------
481,500 401
- ----------------------------------------------------------------------------------
TEXAS--10.9%
505M Austin, Texas Utility System Rev. 6%,
11/15/2013 511,944 426
500M Harris County General Obligation 6 1/2%,
8/15/2013 533,125 444
250M Houston, Texas Water Conveyance System
Cert. of Part. 6 1/4%, 12/15/2012 261,875 218
- ----------------------------------------------------------------------------------
1,306,944 1,088
- ----------------------------------------------------------------------------------
PUERTO RICO--4.7%
545M Puerto Rico Indl. Tourist Edl. Med. &
Env. Ctl. Facs. 6 1/4%, 7/1/2016 563,394 469
- ----------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $11,096,179) 97.0% 11,657,138 9,700
OTHER ASSETS, LESS LIABILITIES 3.0 360,714 300
- ----------------------------------------------------------------------------------
NET ASSETS 100.0% $ 12,017,852 $ 10,000
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>
*Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
See notes to financial statements 17
<PAGE>
Statement of Assets and Liabilities
EXECUTIVE INVESTORS TRUST
June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXECUTIVE INVESTORS
-------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At identified cost....................................... $ 966,177 $ 15,649,057 $ 11,096,179
------------- ------------- -------------
------------- ------------- -------------
At value (Note 1A)....................................... $ 1,139,580 $ 15,132,911 $ 11,657,138
Cash....................................................... 48,001 163,735 182,016
Receivables:
Interest and dividends................................... 2,374 309,799 194,345
Trust shares sold........................................ 991 11,802 56,015
Investment securities sold............................... 5,386 -- --
Other assets............................................... 4 4,966 17
------------- ------------- -------------
Total Assets............................................... 1,196,336 15,623,213 12,089,531
------------- ------------- -------------
LIABILITIES
Payables:
Dividends payable July 15, 1995.......................... 5,101 116,785 55,402
Investment securities purchased.......................... 12,402 -- --
Trust shares redeemed.................................... -- 17,791 1,056
Accrued expenses........................................... 1,459 24,911 15,221
Accrued advisory fee....................................... -- 5,784 --
------------- ------------- -------------
Total Liabilities.......................................... 18,962 165,271 71,679
------------- ------------- -------------
NET ASSETS................................................. $ 1,177,374 $ 15,457,942 $ 12,017,852
------------- ------------- -------------
------------- ------------- -------------
NET ASSETS CONSIST OF:
Capital paid in............................................ $ 976,148 $ 20,638,423 $ 11,350,992
Undistributed net investment income........................ 3,896 88,918 6,652
Accumulated net realized gain (loss) on investment
transactions............................................. 23,927 (4,753,253) 99,249
Net unrealized appreciation (depreciation) in value of
investments.............................................. 173,403 (516,146) 560,959
------------- ------------- -------------
Total...................................................... $ 1,177,374 $ 15,457,942 $ 12,017,852
------------- ------------- -------------
------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING.................. 78,478 2,091,603 891,383
------------- ------------- -------------
------------- ------------- -------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(Net assets divided by trust shares outstanding)......... $15.00 $7.39 $13.48
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value/.9525)*................................. $15.75 $7.76 $14.15
*On purchases of $100,000 or more, the sales charge is
reduced.
</TABLE>
18 See notes to financial statements
<PAGE>
STATEMENT OF OPERATIONS
EXECUTIVE INVESTORS TRUST
Six Months Ended June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXECUTIVE INVESTORS
-------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest.................................................................. $ 750 $ 836,708 $ 339,089
Dividends................................................................. 14,365 16,510 --
Consent fees.............................................................. -- 9,200 --
------------- ------------- -------------
Total income................................................................ 15,115 862,418 339,089
------------- ------------- -------------
Expenses (Note 4):
Advisory fee.............................................................. 5,648 76,342 56,790
Distribution plan expenses................................................ 2,824 38,172 28,395
Professional fees......................................................... 2,322 7,718 7,572
Shareholder servicing costs............................................... 1,233 10,178 3,499
Reports and notices to shareholders....................................... 383 4,111 950
Custodian fees............................................................ 66 1,293 558
Other expenses............................................................ 700 2,446 2,348
------------- ------------- -------------
Total expenses.............................................................. 13,176 140,260 100,112
Less: Expenses waived or assumed.......................................... (10,352) (41,988) (71,717)
------------- ------------- -------------
Net expenses................................................................ 2,824 98,272 28,395
------------- ------------- -------------
Net investment income....................................................... 12,291 764,146 310,694
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note 3):
Net realized gain (loss) on investments..................................... 23,927 (62,484) 126,732
Net unrealized appreciation of investments.................................. 157,865 885,725 661,579
------------- ------------- -------------
Net gain on investments..................................................... 181,792 823,241 788,311
------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 194,083 $ 1,587,387 $ 1,099,005
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See notes to financial statements 19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
EXECUTIVE INVESTORS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXECUTIVE INVESTORS TRUST
--------------------------------------------------------------------------
INSURED TAX
BLUE CHIP FUND HIGH YIELD FUND EXEMPT FUND
---------------------- ------------------------ ------------------------
1/1/95 to 1/1/95 to 1/1/95 to
6/30/95 1994 6/30/95 1994 6/30/95 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income............ $ 12,291 $ 17,589 $ 764,146 $ 1,420,987 $ 310,694 $ 531,033
Net realized gain (loss) on
investments.................... 23,927 70,824 (62,484) 80,680 126,732 (27,483)
Net unrealized appreciation
(depreciation) of
investments.................... 157,865 (102,509) 885,725 (1,873,704) 661,579 (894,199)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................... 194,083 (14,096) 1,587,387 (372,037) 1,099,005 (390,649)
---------- ---------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............ (10,435) (15,549) (711,689) (1,486,797) (307,852) (538,977)
Net realized gain from security
transactions................... -- (70,824) -- -- -- --
---------- ---------- ----------- ----------- ----------- -----------
Total distributions............ (10,435) (86,373) (711,689) (1,486,797) (307,852) (538,977)
---------- ---------- ----------- ----------- ----------- -----------
TRUST SHARE TRANSACTIONS(a)
Proceeds from shares sold........ 38,329 307,337 974,327 4,684,633 1,188,886 2,357,147
Value of distributions
reinvested..................... 4,968 83,856 244,498 659,544 132,134 271,847
Cost of shares redeemed.......... (90,309) (206,473) (1,778,509) (2,574,747) (456,947) (783,306)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) from
trust share transactions..... (47,012) 184,720 (559,684) 2,769,430 864,073 1,845,688
---------- ---------- ----------- ----------- ----------- -----------
Net increase in net assets... 136,636 84,251 316,014 910,596 1,655,226 916,062
NET ASSETS
Beginning of period.............. 1,040,738 956,487 15,141,928 14,231,332 10,362,626 9,446,564
---------- ---------- ----------- ----------- ----------- -----------
End of period+................... $1,177,374 $1,040,738 $15,457,942 $15,141,928 $12,017,852 $10,362,626
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
+Includes undistributed net
investment income of............. $ 3,896 $ 2,040 $ 88,918 $ 36,461 $ 6,652 $ 3,810
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold............................. 2,734 21,798 134,593 620,568 88,175 180,398
Issued for distributions
reinvested..................... 359 6,516 33,912 89,317 9,886 21,136
Redeemed......................... (6,255) (14,678) (247,143) (343,344) (33,854) (60,322)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in
trust shares................. (3,162) 13,636 (78,638) 366,541 64,207 141,212
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
</TABLE>
20 See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
EXECUTIVE INVESTORS TRUST
1. SIGNIFICANT ACCOUNTING POLICIES--The Trust, a Massachusetts business trust,
is registered under the Investment Company Act of 1940 (the "1940 Act") as a
diversified, open-end management investment company. The Trust consists of
unlimited shares of beneficial interest of the Blue Chip Fund, the High Yield
Fund and the Insured Tax Exempt Fund, and accounts separately for the assets,
liabilities and operations of each Fund.
A. Security Valuation--Except as provided below, a security listed or traded on
an exchange or the NASDAQ National Market System is valued at its last sale
price on the exchange or system where the security is principally traded, and
lacking any sales, the security is valued at the mean between the closing bid
and asked prices. Each security traded in the over-the-counter market (including
securities listed on exchanges whose primary market is believed to be
over-the-counter) is valued at the mean between the last bid and asked prices
based upon quotes furnished by a market maker for such securities. Securities
for which market quotations are not readily available are valued on a consistent
basis at fair value as determined in good faith by or under the direction of the
Trust's officers in a manner specifically authorized by the trustees.
Securities in the High Yield Fund may also be priced by a pricing service which
uses quotations obtained from investment dealers or brokers, information with
respect to market transactions in comparable securities and other available
information in determining value.
The municipal bonds in which the Insured Tax Exempt Fund invests are traded
primarily in the over-the-counter markets. Such securities are valued daily on
the basis of valuations provided by a pricing service approved by the Trustees.
The pricing service considers security type, rating, market condition and yield
data, as well as market quotations and prices provided by market makers in
determining value. "When Issued Securities" are reflected in the assets of the
Fund as of the date the securities are purchased.
The municipal bonds held by the Insured Tax Exempt Fund are insured as to
payment of principal and interest by the issuer or under insurance policies
written by independent insurance companies. It is the intention of the Fund to
retain any insured securities which are in default or in significant risk of
default and to place a value on the defaulted securities equal to the value of
similar securities which are not in default.
B. Federal Income Taxes--No provision has been made for federal income taxes on
net income or capital gains since it is the policy of the Trust to continue to
comply with the special provisions of the Internal Revenue Code applicable to
investment companies and to make sufficient distributions of income and capital
gains (in excess of any available capital loss carryovers) to relieve it from
all, or substantially all, federal income taxes. At June 30, 1995, the High
Yield Fund had capital loss carryovers of $4,651,284 of which $3,364,392 expires
in 1998, and $1,286,892 in 1999 and the Insured Tax Exempt Fund had a capital
loss carryover of $19,495 which expires in 2002.
C. Expense Allocation--Expenses directly charged or attributable to a Fund are
paid from the assets of that Fund. General expenses of the Trust are allocated
among and charged to the assets of each Fund on a fair and equitable basis,
which may be based on the relative assets of each Fund or the nature of the
services performed and relative applicability to each Fund.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
EXECUTIVE INVESTORS TRUST
D. Distributions to Shareholders--Dividends from net investment income to
shareholders of the High Yield Fund and the Insured Tax Exempt Fund are declared
daily and paid monthly. Dividends from net investment income of the Blue Chip
Fund are declared and paid quarterly. Distributions from net realized capital
gains are declared and paid annually.
Income dividends and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
capital loss carryforwards and post October losses.
E. Other--Security transactions are accounted for on the date the securities are
purchased or sold. Cost is determined, and gains and losses are based, on the
identified cost basis for both financial statement and federal income tax
purposes. Interest income and estimated expenses are accrued daily. Dividend
income is recorded on the ex-dividend date.
2. TRUST SHARES--The Declaration of Trust permits the issuance of an unlimited
number of shares of beneficial interest, of one or more series.
3. SECURITY TRANSACTIONS--For the six months ended June 30, 1995, purchases and
sales of securities other than United States Treasury bills and short-term
notes, were as follows:
<TABLE>
<CAPTION>
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
----------- ----------- -----------
<S> <C> <C> <C>
Cost of purchases....................... $168,113 $6,106,416 $9,483,741
----------- ----------- -----------
----------- ----------- -----------
Proceeds of sales....................... $154,054 $6,554,287 $8,715,439
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
At June 30, 1995, aggregate cost and net unrealized appreciation (depreciation)
of securities for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
----------- ------------ -----------
<S> <C> <C> <C>
Aggregate cost.......................... $966,177 $15,649,057 $11,096,179
----------- ------------ -----------
----------- ------------ -----------
Unrealized appreciation................. $181,867 $493,758 $577,707
Unrealized depreciation................. 8,464 1,009,904 16,748
----------- ------------ -----------
Net unrealized appreciation
(depreciation)......................... $173,403 $(516,146) $560,959
----------- ------------ -----------
----------- ------------ -----------
</TABLE>
4. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES--Certain officers and
trustees of the Trust are officers and directors of its investment adviser,
Executive Investors Management Company, Inc. ("EIMCO"), its underwriter,
Executive Investors Corporation ("EIC"), its transfer agent, Administrative Data
Management Corp. ("ADM") and/or First Financial Savings Bank, S.L.A. ("FFS"),
custodian of the Trust's Individual Retirement Accounts. Officers and trustees
received no remuneration from the Trust for serving in such
22
<PAGE>
capacities. Their remuneration (together with certain other expenses of the
Trust) is paid by EIMCO or First Investors Corporation ("FIC"), an affiliated
dealer.
The Investment Advisory Agreement provides as compensation to EIMCO an annual
fee, payable monthly, at the rate of 1% on the first $200 million of each Fund's
average daily net assets, .75% on the next $300 million, declining by .03% on
each $250 million thereafter, down to .66% on average daily net assets over $1
billion. The total advisory fees earned by EIMCO from all Funds was $138,780, of
which $104,426 was waived. In addition, expenses of $14,899 were assumed by
EIMCO.
Pursuant to certain state regulations, EIMCO has agreed to reimburse each Fund
if and to the extent that the Fund's aggregate operating expenses, including the
advisory fee but generally excluding interest, taxes, brokerage commissions and
extraordinary expenses, exceed any limitation on expenses applicable to the Fund
in those states (unless waivers of such limitation have been obtained). The
amount of any such reimbursement is limited to the yearly advisory fee. For the
six months ended June 30, 1995, no reimbursement was required pursuant to these
provisions.
For the six months ended June 30, 1995, EIC, as underwriter of the Trust,
received $8,988 in commissions after allowing $5,778 to FIC and $57,672 to other
dealers. Shareholder servicing costs consist of $13,513 in transfer agent fees
and out of pocket expenses accrued to ADM, (of which $4,446 was waived by ADM)
and $1,397 in custodian fees (of which $286 was waived by FFS).
Pursuant to a Distribution Plan adopted under Rule 12b-1 of the 1940 Act, each
Fund pays a fee equal to .50% of its average net assets on an annualized basis
each fiscal year, payable quarterly. The fee consists of a distribution fee and
a service fee. The service fee is payable to the underwriter or other securities
dealers for the ongoing servicing of their clients who are shareholders of any
of the Funds
5. RULE 144A SECURITIES--Under rule 144A, certain restricted securities are
exempt from the registration requirements of the Securities Act of 1933 and may
be resold to qualified institutional investors. At June 30, 1995, the High Yield
Fund held seven 144A securities with an aggregate value of $719,275 representing
4.65% of the High Yield Fund's net assets. These securities are valued as set
forth in Note 1A.
6. CONCENTRATION OF CREDIT RISK--The High Yield Fund's investment in high yield
securities, whether rated or unrated, may be considered speculative and subject
to greater market fluctuations and risks of loss of income and principal than
lower yielding, higher rated, fixed income securities. The risk of loss due to
default by the issuer may be significantly greater for the holders of high
yielding securities, because such securities are generally unsecured and are
often subordinated to other creditors of the issuer. At June 30, 1995, the High
Yield Fund held two defaulted securities with a value of $253,500 representing
1.64% of the High Yield Fund's net assets.
23
<PAGE>
FINANCIAL HIGHLIGHTS
EXECUTIVE INVESTORS TRUST
The following table sets forth the per share operating performance data for a
share of beneficial interest outstanding, total return, ratios to average net
assets and other supplemental data for each period indicated.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
------------------------------------------------------------------------------------------
Income From Investment Operations
--------------------------------------
Net Less Distributions
Net Asset Realized and from
Value Unrealized ---------------------
--------- Net Gain (Loss) Total from Net Net
Beginning Investment on Investment Investment Realized Total
of Period Income Investments Operations Income Gains Distributions
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
- -----------------------------------
5/17/90* to 12/31/90............... $11.43 $.16 $(.52) $(.36) $.16 $-- $.16
1991............................... 10.91 .31 2.68 2.99 .30 .11 .41
1992............................... 13.49 .25 .30 .55 .26 -- .26
1993............................... 13.78 .23 .88 1.11 .23 .59 .82
1994............................... 14.07 .24 (.41) (.17) .22 .93 1.15
1/1/95 to 6/30/95.................. 12.75 .15 2.23 2.38 .13 -- .13
HIGH YIELD FUND
- -----------------------------------
1990............................... 7.74 .95 (1.84) (.89) .96 -- .96
1991............................... 5.89 .82 1.17 1.99 .78 -- .78
1992............................... 7.10 .80 .29 1.09 .76 -- .76
1993............................... 7.43 .72 .50 1.22 .76 -- .76
1994............................... 7.89 .70 (.87) (.17) .74 -- .74
1/1/95 to 6/30/95.................. 6.98 .36 .39 .75 .34 -- .34
INSURED TAX EXEMPT FUND
- ----------------------------------------------
7/26/90* to 12/31/90............... 11.43 .22 .20 .42 .14 -- .14
1991............................... 11.71 .78 .72 1.50 .78 .04 .82
1992............................... 12.39 .74 .59 1.33 .72 .17 .89
1993............................... 12.83 .71 1.27 1.98 .72 .32 1.04
1994............................... 13.77 .68 (1.23) (.55) .69 -- .69
1/1/95 to 6/30/95.................. 12.53 .36 .95 1.31 .36 -- .36
<FN>
*Commencement of operations
**Calculated without sales charges
+Annualized
++Net of expenses waived or assumed by the investment adviser, the underwriter
and the transfer agent from commencement of operations through
June 30, 1995.
</TABLE>
24 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------
---------
Ratio to Average
Net Assets Before
Ratio to Average Net
Expenses
Assets++ Waived or Assumed
Net Asset -------------------- --------------------
Value Net Assets Net Net Portfolio
--------- Total End of Period Investment Investment Turnover
End of Return** (in Expenses Income Expenses Income Rate
Period (%) thousands) (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND
- -----------------------------------
5/17/90* to 12/31/90............... $10.91 (6.02)+ $313 -- 2.74+ 4.67+ (1.93)+ 21
1991............................... 13.49 27.65 677 .03 2.58 3.72 (1.11) 31
1992............................... 13.78 4.13 786 .41 1.95 2.55 (.19) 50
1993............................... 14.07 8.13 956 .50 1.63 2.30 (.17) 47
1994............................... 12.75 (1.21) 1,041 .50 1.82 2.54 (.22) 89
1/1/95 to 6/30/95.................. 15.00 18.71 1,177 .50+ 2.18+ 2.33+ .34+ 14
HIGH YIELD FUND
- -----------------------------------
1990............................... 5.89 (12.51) 11,683 .31 13.71 1.94 12.08 44
1991............................... 7.10 35.38 11,071 .95 12.22 2.17 11.00 40
1992............................... 7.43 16.89 10,491 1.29 10.72 2.10 9.90 83
1993............................... 7.89 17.04 14,231 1.34 9.49 1.95 8.88 89
1994............................... 6.98 (2.32) 15,142 1.33 9.45 1.88 8.90 53
1/1/95 to 6/30/95.................. 7.39 10.88 15,458 1.29+ 10.01+ 1.84+ 9.46+ 41
INSURED TAX EXEMPT FUND
- ---------------------------------------------
7/26/90* to 12/31/90............... 11.71 8.00+ 653 .09+ 4.41+ 1.70+ 2.79+ 0
1991............................... 12.39 13.20 4,369 .12 6.23 2.41 3.94 112
1992............................... 12.83 11.03 5,875 .47 5.88 1.89 4.47 131
1993............................... 13.77 15.74 9,447 .50 5.29 1.68 4.11 97
1994............................... 12.53 (3.95) 10,363 .50 5.39 1.80 4.09 215
1/1/95 to 6/30/95.................. 13.48 10.51 12,018 .50+ 5.47+ 1.76+ 4.21+ 78
<FN>
*Commencement of operations
**Calculated without sales charges
+Annualized
++Net of expenses waived or assumed by the investment adviser, the underwriter
and the transfer agent from commencement of operations through
June 30, 1995.
</TABLE>
25
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and Trustees of
Executive Investors Trust
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of Executive Investors Blue Chip Fund, Executive
Investors High Yield Fund and Executive Investors Insured Tax Exempt Fund
(comprising Executive Investors Trust), as of June 30, 1995, the related
statement of operations for the six months then ended, the statement of changes
in net assets for the six months ended June 30, 1995 and the year ended December
31, 1994 and financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights 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 June
30, 1995, by correspondence with the custodian 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 referred to
above present fairly, in all material respects, the financial position of
Executive Investors Blue Chip Fund, Executive Investors High Yield Fund and
Executive Investors Insured Tax Exempt Fund as of June 30, 1995, and the results
of their operations, the changes in their net assets and financial highlights
for each of the respective periods presented, in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
July 31, 1995
26
<PAGE>
EXECUTIVE INVESTORS TRUST
TRUSTEES
- -------------------------------------------
JAMES J. COY
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
F. WILLIAM ORTMAN, JR.
REX R. REED
HERBERT RUBINSTEIN
JAMES M. SRYGLEY
JOHN T. SULLIVAN
ROBERT F. WENTWORTH
OFFICERS
- -------------------------------------------
GLENN O. HEAD
President
GEORGE V. GANTER
Vice President
PATRICIA D. POITRA
Vice President
CLARK D. WAGNER
Vice President
CONCETTA DURSO
Vice President and Secretary
JOSEPH I. BENEDEK
Treasurer
CAROL LERNER BROWN
Assistant Secretary
SHAREHOLDER INFORMATION
- -------------------------------------------
INVESTMENT ADVISER
EXECUTIVE INVESTORS
MANAGEMENT COMPANY, INC.
95 Wall Street
New York, NY 10005
UNDERWRITER
EXECUTIVE INVESTORS CORPORATION
95 Wall Street
New York, NY 10005
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
TRANSFER AGENT
ADMINISTRATIVE DATA
MANAGEMENT CORP.
581 Main Street
Woodbridge, NJ 07095-1198
LEGAL COUNSEL
KIRKPATRICK & LOCKHART LLP
1800 M Street, N.W.
Washington, DC 20036
AUDITORS
TAIT, WELLER & BAKER
Two Penn Center Plaza
Philadelphia, PA 19102
It is the Trust's practice to mail only one copy of its annual and semi-annual
reports to any address at which more than one shareholder with the same last
name has indicated that mail is to be delivered. Additional copies of the
reports will be mailed if requested by any shareholder in writing or by calling
800-423-4026. The Trust will ensure that separate reports are sent to any
shareholder who subsequently changes his or her mailing address.
This report is authorized for distribution only to existing shareholders, and,
if given to prospective shareholders, must be accompanied or preceded by the
Trust's prospectus.
27
<PAGE>
EXECUTIVE INVESTORS TRUST
95 WALL STREET
NEW YORK, NY 10005
The following appears on the bottom lefthand side:
EIHY-107
Vertically reading from bottom to top in the center of the page the
words "EXECUTIVE INVESTORS" appear.
EXECUTIVE
INVESTORS
TRUST
Blue Chip Fund
High Yield Fund
Insured Tax Exempt Fund
SEMI-
ANNUAL
REPORT
JUNE 30, 1995
