<PAGE>
Portfolio Manager's Letter
EXECUTIVE INVESTORS BLUE CHIP FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets. The broad
stock market averages repeatedly closed at record highs, and bond prices surged
as long-term interest rates fell almost two percent. Several general factors
contributed to this strong performance. First, the U.S. economy grew at a
moderate pace throughout the year. Second, the rate of inflation declined,
reaching its lowest level since the 1960s. Third, the Federal Reserve began
lowering short-term interest rates during the second half of the year. Finally,
during the fourth quarter, Congress and the President appeared close to reaching
an agreement to eliminate the Federal budget deficit over the next seven years.
Gains in the equity markets in 1995 were fueled by investor confidence in a
continuing low growth, low inflation economy. Investor confidence was bolstered
by a favorable and improving interest rate environment. Acquisition and merger
activity, restructurings and announced cost cutting plans also added to investor
anticipation of continued improved earnings throughout the year.
During 1995, the Blue Chip Fund returned 36.3% on a net asset value basis. The
Fund declared dividends from net investment income of 29 cents per share and
made a capital gain distribution of 73.8 cents per share.
The Fund was invested to take advantage of the surge in the financial,
technology and consumer non-durable sectors. The best performers were direct
beneficiaries of the favorable interest rate environment; banks and select
insurance companies such as Citicorp, AIG and BankAmerica. Technology, spurred
by continued industry automation and general enthusiasm for new products, also
performed strongly. The best performers in the technology sector were Microsoft,
Hewlett-Packard, Intel and Cisco Systems. Consumer non-durables benefited from a
shift in the second half of the year away from cyclical and growth issues. Coca
Cola, PepsiCo and Philip Morris along with a number of drug stocks performed
extremely well in 1995. The Blue Chip Fund continued to benefit from the opening
of international borders worldwide by investing in many companies with a
substantial foreign presence.
Our outlook for the coming year calls for continued slow growth and low
inflation in a benign interest rate environment. Provided the economic "soft
landing" scenario continues to play out through 1996, equity markets could
continue to achieve new highs. However, unlike the year just ended, broad sector
gains may not fuel the new highs. Selectivity may be the key to avoid getting
stuck in the mud at the end of the "soft landing".
As always we appreciate the opportunity to serve your investment needs.
Sincerely,
[SIG]
Patricia D. Poitra
Director of Equities
and Portfolio Manager
January 31, 1996
1
<PAGE>
CUMULATIVE PERFORMANCE INFORMATION
EXECUTIVE INVESTORS BLUE CHIP FUND
Comparison of change in value of $10,000 investment in the Executive Investors
Blue Chip Fund and the Standard & Poor's 500 Index.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1995
<S> <C> <C>
Blue Chip Fund Standard & Poor's 500 Index
May-90 9,525 10,000
Dec-90 9,215 9,335
Dec-91 11,774 12,185
Dec-92 12,259 13,060
Dec-93 13,256 14,340
Dec-94 13,096 14,524
Dec-95 17,849 20,463
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 36.3% 29.8%
Five Years 14.1% 13.0%
Since Inception 11.8% 10.8%
</TABLE>
THE GRAPH COMPARES A $10,000 INVESTMENT MADE IN THE EXECUTIVE INVESTORS BLUE
CHIP FUND ON 5/17/90 (INCEPTION DATE) WITH A THEORETICAL INVESTMENT IN THE S&P
500 INDEX. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN THIS INDEX. IN ADDITION,
THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. FOR PURPOSES OF THE
GRAPH AND THE ACCOMPANYING TABLE, UNLESS OTHERWISE INDICATED, IT HAS BEEN
ASSUMED THAT THE MAXIMUM SALES CHARGE WAS DEDUCTED FROM THE INITIAL $10,000
INVESTMENT IN THE FUND AND ALL DIVIDENDS AND DISTRIBUTIONS WERE REINVESTED.
THE S&P 500 INDEX IS AN UNMANAGED CAPITALIZATION-WEIGHTED INDEX OF 500 STOCKS
DESIGNED TO MEASURE PERFORMANCE OF THE BROAD DOMESTIC ECONOMY THROUGH CHANGES
IN THE AGGREGATE MARKET VALUE OF SUCH STOCKS, WHICH REPRESENT ALL MAJOR
INDUSTRIES.
*AVERAGE ANNUAL TOTAL RETURN FIGURES (FOR THE PERIOD ENDED 12/31/95) INCLUDE THE
REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS. "N.A.V. ONLY" RETURNS ARE
CALCULATED WITHOUT SALES CHARGES. THE "S.E.C. STANDARDIZED" RETURNS SHOWN ARE
BASED ON THE MAXIMUM SALES CHARGE OF 4.75%. SOME OR ALL OF THE EXPENSES OF THE
FUND WERE WAIVED OR ASSUMED. IF SUCH EXPENSES HAD BEEN PAID BY THE FUND, THE
"S.E.C. STANDARDIZED" AVERAGE ANNUAL TOTAL RETURN FOR ONE YEAR, FIVE YEARS AND
SINCE INCEPTION WOULD HAVE BEEN 28.0%, 11.1% AND 8.9%, RESPECTIVELY. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. INVESTMENT
RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST. S&P 500 INDEX FIGURES FROM STANDARD & POOR'S AND ALL OTHER FIGURES FROM
EXECUTIVE INVESTORS MANAGEMENT COMPANY, INC.
2
<PAGE>
PORTFOLIO MANAGER'S LETTER
EXECUTIVE INVESTORS HIGH YIELD FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets. The broad
stock market averages repeatedly closed at record highs, and bond prices surged
as long-term interest rates fell almost two percent. Several general factors
contributed to this strong performance. First, the U.S. economy grew at a
moderate pace throughout the year. Second, the rate of inflation declined,
reaching its lowest level since the 1960s. Third, the Federal Reserve began
lowering short-term interest rates during the second half of the year. Finally,
during the fourth quarter, Congress and the President appeared close to reaching
an agreement to eliminate the Federal budget deficit over the next seven years.
Executive Investors High Yield Fund performed well during 1995 returning 19.1%
on a net asset value basis. This return compared favorably with a 16.4% average
return for high yield funds according to Lipper Analytical Services, Inc. During
this period, dividends declared from net investment income amounted to 67.2
cents per share.
Inflows to high yield mutual funds were fairly consistent throughout 1995. AMG
Data measured a net $8.4 billion inflow to the funds, fueling a rally that began
early in the year. Led at first by lower-rated and deferred coupon bonds,
several industry sectors that had underperformed in 1994 rebounded in 1995. The
communications sector posted among the highest returns of any industry. Gaming,
one of the worst performers of 1994, showed a strong turnaround driven
particularly by improvement in the Atlantic City market. Other industries that
generally outperformed the overall market were finance, media, energy,
healthcare services, and home building. These industries benefited from lower
interest rates, regulatory developments, and/or consolidation. The retail and
restaurant groups showed continued weakness for the second year in a row.
The improving interest rate environment caused the net new supply of high yield
bonds to increase significantly in 1995 compared to 1994. Approximately 60% of
the new issuance occurred in the second half of 1995 amid signs of a slowing
economy. Accordingly, market leadership began to rotate away from economically
sensitive industries such as metals, chemicals, and forest products as the
volume growth and pricing power these industries recently enjoyed reached a
cyclical peak. The overall credit quality of the high yield market continued to
improve. Growth in issuance of credits rated split BB or better resulted in a
greater participation from better quality and crossover investors, thus bidding
up the prices in that tier of the market.
The High Yield Fund's performance benefited from its holdings of more liquid and
higher-rated bonds in industries where cash flows are perceived to be stable or
growing or where significant consolidation is occurring. Examples of sector
choices which aided performance include a heavy weighting in the
media/telecommunications (notably Echostar deferred coupon bonds), and forest
products industries. Also, the Fund gained from an underweighting in the retail
industry, where we avoided several bankruptcies such as Caldor, Bradlee's and
Grand Union. Additionally, the Fund's deferred-pay holdings helped performance,
both by virtue of their increased interest-rate sensitivity and by solid credit
improvements by many of them.
We believe that high yield bonds are positioned to perform well versus fixed
income alternatives in 1996. While we expect some modest short-term interest
rate reduction to stimulate the economy in this election year, we are unlikely
to see the magnitude of interest rate decline that occurred in 1995. In a stable
to moderately declining interest rate environment, high yield bonds tend to
outperform fixed income alternatives by virtue of their higher income. 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
January 31, 1996
3
<PAGE>
CUMULATIVE PERFORMANCE INFORMATION
EXECUTIVE INVESTORS HIGH YIELD FUND
Comparison of change in value of $10,000 investment in the Executive Investors
High Yield Fund and the First Boston High Yield Index.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1995
<S> <C> <C>
High Yield Fund First Boston High Yield Index
Mar-87 9,525 10,000
Dec-87 9,113 10,563
Dec-88 11,055 12,107
Dec-89 10,933 12,155
Dec-90 9,566 11,379
Dec-91 12,968 16,358
Dec-92 15,008 19,075
Dec-93 17,564 22,683
Dec-94 17,156 22,463
Dec-95 20,430 26,367
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 19.1% 13.4%
Five Years 16.4% 15.3%
Since Inception 9.1% 8.5%
S.E.C. 30-Day Yield 7.8%
</TABLE>
THE GRAPH COMPARES A $10,000 INVESTMENT MADE IN THE EXECUTIVE INVESTORS HIGH
YIELD FUND ON 3/24/87 (INCEPTION DATE) WITH A THEORETICAL INVESTMENT IN THE
FIRST BOSTON HIGH YIELD INDEX. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN THIS
INDEX. IN ADDITION, THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. FOR
PURPOSES OF THE GRAPH AND THE ACCOMPANYING TABLE, UNLESS OTHERWISE INDICATED,
IT HAS BEEN ASSUMED THAT THE MAXIMUM SALES CHARGE WAS DEDUCTED FROM THE INITIAL
$10,000 INVESTMENT IN THE FUND AND ALL DIVIDENDS AND DISTRIBUTIONS WERE
REINVESTED.
THE FIRST BOSTON HIGH YIELD INDEX IS DESIGNED TO MEASURE THE PERFORMANCE OF THE
HIGH YIELD BOND MARKET. THE INDEX CONSISTS OF 687 DIFFERENT ISSUES, 574 OF
WHICH ARE CASH PAY, 84 ARE ZERO-COUPON, 20 ARE STEP BONDS, 5 ARE
PAYMENT-IN-KIND BONDS AND THE REMAINING 4 ARE IN DEFAULT. THE BONDS INCLUDED IN
THE INDEX HAVE AN AVERAGE LIFE OF 7.8 YEARS, AN AVERAGE MATURITY OF 7.9 YEARS,
AN AVERAGE DURATION OF 4.4 YEARS AND AN AVERAGE COUPON OF 10.6%.
*AVERAGE ANNUAL TOTAL RETURN FIGURES (FOR THE PERIOD ENDED 12/31/95) INCLUDE THE
REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS. "N.A.V. ONLY" RETURNS ARE
CALCULATED WITHOUT SALES CHARGES. THE "S.E.C. STANDARDIZED" RETURNS SHOWN ARE
BASED ON THE MAXIMUM SALES CHARGE OF 4.75% (PRIOR TO 10/28/88, THE MAXIMUM
SALES CHARGE WAS 4.0%) AND ARE LOWER THAN THEY WOULD HAVE BEEN HAD THE SALES
CHARGE NOT BEEN INCREASED. SOME OR ALL OF THE EXPENSES OF THE FUND WERE WAIVED
OR ASSUMED. IF SUCH EXPENSES HAD BEEN PAID BY THE FUND, THE "S.E.C.
STANDARDIZED" AVERAGE ANNUAL TOTAL RETURN FOR ONE YEAR, FIVE YEARS AND SINCE
INCEPTION WOULD HAVE BEEN 12.9%, 14.4% AND 7.2%, RESPECTIVELY AND THE S.E.C.
YIELD FOR DECEMBER 1995 WOULD HAVE BEEN 7.3%. RESULTS REPRESENT PAST
PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL
VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. THE UNUSUALLY HIGH
CURRENT YIELDS OFFERED REFLECT THE SUBSTANTIAL RISKS ASSOCIATED WITH
INVESTMENTS IN HIGH YIELD BONDS. THE ISSUERS OF THE BONDS PAY HIGHER INTEREST
RATES BECAUSE THEY HAVE A GREATER LIKELIHOOD OF FINANCIAL DIFFICULTY, WHICH
COULD RESULT IN THEIR INABILITY TO REPAY THE BONDS FULLY WHEN DUE. PRICES OF
HIGH YIELD BONDS ARE ALSO SUBJECT TO GREATER FLUCTUATIONS. FIRST BOSTON HIGH
YIELD INDEX FIGURES FROM CS FIRST BOSTON AND ALL OTHER FIGURES FROM EXECUTIVE
INVESTORS MANAGEMENT COMPANY, INC.
4
<PAGE>
PORTFOLIO MANAGER'S LETTER
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
Dear Investor:
1995 was a very good year for investors in the U.S. financial markets. The broad
stock market averages repeatedly closed at record highs, and bond prices surged
as long-term interest rates fell almost two percent. Several general factors
contributed to this strong performance. First, the U.S. economy grew at a
moderate pace throughout the year. Second, the rate of inflation declined,
reaching its lowest level since the 1960s. Third, the Federal Reserve began
lowering short-term interest rates during the second half of the year. Finally,
during the fourth quarter, Congress and the President appeared close to reaching
an agreement to eliminate the Federal budget deficit over the next seven years.
The substantial decline in long-term interest rates during 1995 provided
municipal bond investors with historically high total returns. These returns
were achieved despite investor concern about tax reform; Orange County,
California's bankruptcy; and new issue supply which reached $156 billion due to
a large number of refunding deals in the fourth quarter.
During 1995, Executive Investors Insured Tax Exempt Fund returned 20.5% on a net
asset value basis, outperforming the Lipper Analytical Services, Inc.'s insured
municipal bond fund average. The large decline in long-term interest rates
during 1995 provided investors with substantial capital appreciation. In 1995,
the Fund declared dividends from net investment income of 72.7 cents per share
and made a capital gain distribution of 28 cents per share.
The Fund's excellent performance was primarily attributable to two factors.
First, over half of the Fund's assets were invested in noncallable bonds which
appreciated in price faster than callable bonds as the market rallied. Second,
the Fund took advantage of numerous short-term trading opportunities,
particularly by purchasing relatively cheap new issues. The Fund generally
remained fully invested to maximize current income.
Looking forward, the uncertainty of potential tax reform during the next two
years remains the main hurdle facing the tax exempt bond market. This
uncertainty continues to keep municipal bonds historically cheap to taxable
bonds. As investors recognize that major tax reform is unlikely, municipal bonds
are likely to outperform taxable bonds. Thus, we continue to believe that
municipal bonds represent an attractive opportunity 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
January 31, 1996
5
<PAGE>
CUMULATIVE PERFORMANCE INFORMATION
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
Comparison of change in value of $10,000 investment in the Executive Investors
Insured Tax Exempt Fund and the Lehman Brothers Municipal Bond Index.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1995
<S> <C> <C>
Insured Tax Exempt Fund Lehman Brothers Municipal Bond Index
Jul-90 9,525 10,000
Dec-90 9,901 10,286
Dec-91 11,188 11,536
Dec-92 12,412 12,552
Dec-93 14,366 14,093
Dec-94 13,798 13,365
Dec-95 16,631 15,697
Average Annual Total Return*
N.A.V. Only S.E.C. Standardized
One Year 20.5% 14.9%
Five Years 11.0% 9.9%
Since Inception 10.8% 9.8%
S.E.C. 30-Day Yield 4.9%
</TABLE>
THE GRAPH COMPARES A $10,000 INVESTMENT MADE IN THE EXECUTIVE INVESTORS INSURED
TAX EXEMPT FUND ON 7/26/90 (INCEPTION DATE) WITH A THEORETICAL INVESTMENT IN
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX. IT IS NOT POSSIBLE TO INVEST DIRECTLY
IN THIS INDEX. IN ADDITION, THE INDEX DOES NOT TAKE INTO ACCOUNT FEES AND
EXPENSES OR COST OF INSURANCE OF THE BONDS HELD BY AN INSURED TAX-EXEMPT BOND
FUND. FOR PURPOSES OF THE GRAPH AND THE ACCOMPANYING TABLE, UNLESS OTHERWISE
INDICATED, IT HAS BEEN ASSUMED THAT THE MAXIMUM SALES CHARGE WAS DEDUCTED FROM
THE INITIAL $10,000 INVESTMENT IN THE FUND AND ALL DIVIDENDS AND DISTRIBUTIONS
WERE REINVESTED.
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS A TOTAL RETURN PERFORMANCE
BENCHMARK FOR THE LONG-TERM INVESTMENT GRADE TAX EXEMPT BOND MARKET. RETURNS
AND ATTRIBUTES FOR THE INDEX ARE CALCULATED SEMI-MONTHLY USING APPROXIMATELY
21,000 MUNICIPAL BONDS WHICH ARE PRICED BY MULLER DATA CORP.
*AVERAGE ANNUAL TOTAL RETURN FIGURES (FOR THE PERIOD ENDED 12/31/95) INCLUDE THE
REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS. "N.A.V. ONLY" RETURNS ARE
CALCULATED WITHOUT SALES CHARGES. THE "S.E.C. STANDARDIZED" RETURNS SHOWN ARE
BASED ON THE MAXIMUM SALES CHARGE OF 4.75%. SOME OR ALL OF THE EXPENSES OF THE
FUND WERE WAIVED OR ASSUMED. IF SUCH EXPENSES HAD BEEN PAID BY THE FUND, THE
"S.E.C. STANDARDIZED" AVERAGE ANNUAL TOTAL RETURN FOR ONE YEAR, FIVE YEARS AND
SINCE INCEPTION WOULD HAVE BEEN 13.5%, 7.1% AND 8.2%, RESPECTIVELY AND THE
S.E.C. 30-DAY YIELD FOR DECEMBER 1995 WOULD HAVE BEEN 3.9%. RESULTS REPRESENT
PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. LEHMAN
BROTHERS MUNICIPAL BOND INDEX FIGURES FROM LEHMAN BROTHERS INC. AND ALL OTHER
FIGURES FROM EXECUTIVE INVESTORS MANAGEMENT COMPANY, INC.
6
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
COMMON STOCKS--93.8%
BASIC INDUSTRY--3.8%
100 *Alumax, Inc. $ 3,062 $ 20
100 Dow Chemical Company 7,037 49
100 Du Pont (E.I.) De Nemours & Company 6,987 49
100 Freeport McMoRan Copper & Gold, Inc. Class "B" 2,812 20
200 IMC Global, Inc. 8,174 57
100 James River Corporation of Virginia 2,412 17
100 Mead Corporation 5,224 37
130 Minnesota Mining & Manufacturing Company 8,612 60
100 Sigma-Aldrich Corporation 4,950 35
100 Temple-Inland, Inc. 4,412 31
- ------------------------------------------------------------------------------------------------------
53,682 375
- ------------------------------------------------------------------------------------------------------
CAPITAL GOODS--7.6%
100 Boeing Company 7,837 56
100 Browning-Ferris Industries, Inc. 2,950 21
50 Eaton Corporation 2,680 19
100 Emerson Electric Company 8,174 57
100 Foster Wheeler Corporation 4,250 30
550 General Electric Company 39,600 278
75 Ingersoll-Rand Company 2,633 18
100 Lockheed Martin Corporation 7,900 55
100 Loral Corporation 3,537 25
200 Raytheon Company 9,450 66
100 United Technologies Corporation 9,488 67
100 *Varity Corporation 3,713 26
200 WMX Technologies, Inc. 5,975 42
- ------------------------------------------------------------------------------------------------------
108,187 760
- ------------------------------------------------------------------------------------------------------
CONSUMER DURABLES--1.3%
100 Corning, Inc. 3,200 22
350 Ford Motor Company 10,150 71
150 Masco Corporation 4,706 33
- ------------------------------------------------------------------------------------------------------
18,056 126
- ------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--23.1%
250 Abbott Laboratories $ 10,438 $ 73
100 American Home Products Corporation 9,700 68
150 Anheuser-Busch Companies, Inc. 10,031 70
100 Astra AB (ADR) Class "A" 4,000 28
150 Bristol-Myers Squibb Company 12,881 90
450 Coca-Cola Company 33,413 234
150 Columbia/HCA Healthcare Corporation 7,613 53
200 CPC International, Inc. 13,725 96
100 Eastman Kodak Company 6,700 47
200 Eli Lilly & Company 11,250 79
100 General Mills, Inc. 5,775 40
100 Gillette Company 5,213 37
150 Heinz (H.J.) Company 4,969 35
100 Hershey Foods Corporation 6,500 46
200 Johnson & Johnson 17,125 120
100 Kellogg Company 7,725 54
100 Kimberly-Clark Corporation 8,275 58
350 Merck & Company, Inc. 23,013 161
300 Newell Company 7,763 54
200 Nike, Inc. 13,925 98
200 PepsiCo, Inc. 11,175 78
200 Pfizer, Inc. 12,600 88
300 Philip Morris Companies, Inc. 27,150 190
200 Procter & Gamble Company 16,600 116
100 *Ralcorp Holdings, Inc. 2,425 17
100 Schering-Plough Corporation 5,475 38
200 Teva Pharmaceutical Industries Ltd. (ADR) 9,275 65
100 Unilever N.V. 14,075 99
100 United Healthcare Corporation 6,550 46
50 Warner-Lambert Company 4,856 34
- ------------------------------------------------------------------------------------------------------
330,215 2,312
- ------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--9.5%
100 *CUC International, Inc. $ 3,413 $ 23
100 Gap, Inc. 4,200 29
150 Home Depot, Inc. 7,181 50
100 ITT Corporation 5,300 37
100 ITT Hartford Group, Inc. 4,838 34
100 ITT Industries, Inc. 2,400 17
100 *Kroger Company 3,750 26
150 Marriott International, Inc. 5,738 40
100 May Department Stores Company 4,225 30
200 McDonald's Corporation 9,025 63
100 McGraw-Hill Companies, Inc. 8,713 61
150 Nordstrom, Inc. 6,075 43
300 *Price/Costco, Inc. 4,575 32
100 Sears, Roebuck and Company 3,900 27
100 Talbots, Inc. 2,875 20
200 *Tele-Communications, Inc., Liberty Media Group Class "A" 5,375 38
300 *Tele-Communications, Inc., TCI Group Class "A" 5,963 42
150 US West Media Group 2,850 20
100 *Viacom, Inc. Class "B" 4,738 33
150 *Vons Companies, Inc. 4,238 30
800 Wal-Mart Stores, Inc. 17,900 125
100 Walgreen Company 2,988 21
200 Walt Disney Company 11,800 83
300 *Woolworth Corporation 3,900 27
- ------------------------------------------------------------------------------------------------------
135,960 951
- ------------------------------------------------------------------------------------------------------
ENERGY--13.1%
100 Aluminum Company of America 5,288 36
150 Amoco Corporation 10,781 76
150 Atlantic Richfield Company 16,613 116
150 Avery Dennison Corporation 7,519 53
200 Baker Hughes, Inc. 4,875 34
200 Barrick Gold Corporation 5,275 37
200 Chevron Corporation 10,500 74
200 Enron Corporation 7,625 53
400 Exxon Corporation 32,050 225
- ------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
ENERGY (continued)
50 Kerr-McGee Corporation $ 3,175 $ 22
100 Mobil Corporation 11,200 79
150 Morton International, Inc. 5,381 38
100 Pacific Enterprises 2,825 20
225 Royal Dutch Petroleum Company 31,753 223
100 Schlumberger Ltd. 6,925 49
300 Sonat, Inc. 10,688 75
100 Texaco, Inc. 7,850 55
200 Unocal Corporation 5,825 41
- ------------------------------------------------------------------------------------------------------
186,148 1,306
- ------------------------------------------------------------------------------------------------------
FINANCIAL--12.2%
150 American Express Company 6,206 45
150 American International Group, Inc. 13,875 97
100 American Re Corporation 4,088 29
311 Banc One Corporation 11,740 82
100 Bank of New York Company, Inc. 4,875 34
150 BankAmerica Corporation 9,713 68
300 Charles Schwab Corporation 6,038 42
100 Chemical Banking Corporation 5,875 41
100 Chubb Corporation 9,675 68
200 Citicorp 13,450 94
100 Dean Witter Discover and Company 4,700 33
150 Federal National Mortgage Association 18,619 131
100 First Union Corporation 5,563 39
100 General Re Corporation 15,500 109
700 Hibernia Corporation Class "A" 7,525 53
50 Marsh & McLennan Companies, Inc. 4,438 31
100 Mellon Bank Corporation 5,375 38
150 NationsBank Corporation 10,444 73
300 Norwest Corporation 9,900 69
200 Salomon, Inc. 7,100 50
- ------------------------------------------------------------------------------------------------------
174,699 1,226
- ------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED
FOR EACH
$10,000 OF
SHARES SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
TECHNOLOGY--13.4%
200 *Airtouch Communications, Inc. $ 5,650 $ 40
200 *Applied Materials, Inc. 7,875 55
100 *Ascend Communications, Inc. 8,112 57
500 A T & T Corp. 32,375 227
100 Automatic Data Processing, Inc. 7,425 52
100 *Cisco Systems, Inc. 7,462 52
100 Computer Associates International, Inc. 5,687 40
200 First Data Corporation 13,375 94
200 Hewlett-Packard Company 16,750 117
200 Intel Corporation 11,350 80
200 International Business Machines Corporation 18,350 129
200 MCI Communications Corporation 5,225 37
200 *Microsoft Corporation 17,550 123
200 Motorola, Inc. 11,400 80
200 *National Semiconductor Corporation 4,450 31
250 *Oracle Corporation 10,594 74
300 *Premenos Technology Corporation 7,912 55
- ------------------------------------------------------------------------------------------------------
191,542 1,343
- ------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--.4%
150 US West Communications Group 5,363 38
- ------------------------------------------------------------------------------------------------------
TRANSPORTATION--.5%
100 *AMR Corporation 7,426 52
- ------------------------------------------------------------------------------------------------------
UTILITIES--8.9%
200 Ameritech Corporation 11,800 84
150 Bell Atlantic Corporation 10,031 70
300 BellSouth Corporation 13,050 91
200 Carolina Power & Light Company 6,900 48
400 CINergy Corporation 12,250 86
200 Duke Power Company 9,475 66
250 FPL Group, Inc. 11,594 81
- ------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS BLUE CHIP FUND
December 31, 1995
<TABLE>
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
<CAPTION>
AMOUNT
INVESTED
SHARES OR FOR EACH
PRINCIPAL $10,000 OF
AMOUNT SECURITY VALUE NET ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
UTILITIES (continued)
300 GTE Corporation $ 13,200 $ 93
150 NYNEX Corporation 8,100 57
200 Pacific Telesis Group 6,725 47
200 PacifiCorp 4,250 30
200 SBC Communications, Inc. 11,500 81
200 Texas Utilities Company 8,225 58
- ------------------------------------------------------------------------------------------------------
127,100 892
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $1,038,662) 1,338,378 9,381
- ------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS--1.0%
CONSUMER SERVICES
$ 20M Bell Sports Corp., 4 1/4%, 11/15/00 (cost $15,641) 14,000 98
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $1,054,303) 94.8% 1,352,378 9,479
OTHER ASSETS, LESS LIABILITIES 5.2 74,130 521
- ------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,426,508 $ 10,000
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
12 See notes to financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
CORPORATE BONDS--91.9%
AEROSPACE/DEFENSE--3.0%
$ 250M Fairchild Industries, Inc., 12 1/4%, 1999 $ 267,500 $ 171
200M Howmet Corp., 10%, 2003 (Note 5) 208,000 133
- ------------------------------------------------------------------------------------------------------
475,500 304
- ------------------------------------------------------------------------------------------------------
APPAREL/TEXTILES--2.5%
400M Westpoint Stevens, Inc., 9 3/8%, 2005 396,000 253
- ------------------------------------------------------------------------------------------------------
AUTOMOTIVE--3.4%
150M Lear Seating, Inc., 11 1/4%, 2000 158,437 101
350M SPX Corp., 11 3/4%, 2002 372,750 238
- ------------------------------------------------------------------------------------------------------
531,187 339
- ------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--.5%
185M Waxman Industries, Inc., 0%-12 3/4%, 2004 74,000 47
- ------------------------------------------------------------------------------------------------------
CHEMICALS--7.1%
500M Harris Chemical North America, Inc., 10 1/4%, 2001 486,875 311
400M Rexene Corp., 11 3/4%, 2004 425,000 271
200M Synthetic Industries, Inc., 12 3/4%, 2002 197,000 126
- ------------------------------------------------------------------------------------------------------
1,108,875 708
- ------------------------------------------------------------------------------------------------------
CONGLOMERATES--1.8%
500M Semi-Tech Corp., 0%-11 1/2%, 2003 271,875 173
- ------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--2.1%
300M Herff Jones, Inc., 11%, 2005 322,500 206
- ------------------------------------------------------------------------------------------------------
DURABLE GOODS MANUFACTURING--1.3%
200M Fairfield Manufacturing, Inc., 11 3/8%, 2001 196,000 125
- ------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.9%
350M Essex Group, Inc., 10%, 2003 346,500 221
44M Thermadyne Industries, Inc., 10 1/4%, 2002 44,220 28
62M Thermadyne Industries, Inc., 10 3/4%, 2003 62,310 40
- ------------------------------------------------------------------------------------------------------
453,030 289
- ------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
ENERGY--8.4%
$ 300M Falcon Drilling Co., Inc., 12 1/2%, 2005 $ 330,000 $ 211
400M Giant Industries, Inc., 9 3/4%, 2003 406,000 259
250M Maxus Energy Corp., 11 1/2%, 2015 263,750 168
300M United Meridian Corp., 10 3/8%, 2005 318,750 203
- ------------------------------------------------------------------------------------------------------
1,318,500 841
- ------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--2.1%
200M Olympic Financial Ltd., 13%, 2000 219,000 140
100M Terra Nova Holdings PLC, 10 3/4%, 2005 109,500 70
- ------------------------------------------------------------------------------------------------------
328,500 210
- ------------------------------------------------------------------------------------------------------
FOOD SERVICES--1.8%
300M Flagstar Corp., 10 3/4%, 2001 276,750 177
- ------------------------------------------------------------------------------------------------------
FOOD/BEVERAGE/TOBACCO--3.9%
300M Fleming Co., Inc., 10 5/8%, 2001 292,500 187
300M Van de Kamps, Inc., 12%, 2005 (Note 5) 312,000 199
- ------------------------------------------------------------------------------------------------------
604,500 386
- ------------------------------------------------------------------------------------------------------
GAMING/LODGING--3.5%
220M Casino America, Inc., 11 1/2%, 2001 207,900 133
250M Grand Casinos, Inc., 10 1/8%, 2003 261,875 167
300M SHRP Capital Corp., 11 3/4%, 1999 (Defaulted)(Note 4) 75,000 48
- ------------------------------------------------------------------------------------------------------
544,775 348
- ------------------------------------------------------------------------------------------------------
HEALTHCARE--6.1%
300M Mediq/PRN Life Support Services, Inc., 11 1/8%, 1999 300,000 191
300M Ornda Healthcorp., 12 1/4%, 2002 330,000 211
300M Tenet Healthcare Corp., 10 1/8%, 2005 333,375 213
- ------------------------------------------------------------------------------------------------------
963,375 615
- ------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--13.2%
$ 500M Bell Cablemedia PLC, 0%-11.95%, 2004 $ 353,750 $ 226
650M Echostar Communications Corp., 0%-12 7/8%, 2004 438,750 280
300M Garden State Newspapers, Inc., 12%, 2004 304,500 194
250M Lamar Advertising, Inc., 11%, 2003 260,000 166
400M Outdoor Systems, Inc., 10 3/4%, 2003 388,000 248
300M Rogers Cablesystems, Inc., 10%, 2005 323,625 206
- ------------------------------------------------------------------------------------------------------
2,068,625 1,320
- ------------------------------------------------------------------------------------------------------
MINING/METALS--9.7%
274M Carbide/Graphite Group, Inc., 11 1/2%, 2003 296,948 188
200M Gulf States Steel Inc., 13 1/2%, 2003 (Note 5) 181,000 115
240M UCAR Global Enterprises, Inc., 12%, 2005 274,800 175
400M WCI Steel, Inc., 10 1/2%, 2002 389,000 248
400M Wheeling-Pittsburgh Steel Corp., 9 3/8%, 2003 378,000 241
- ------------------------------------------------------------------------------------------------------
1,519,748 967
- ------------------------------------------------------------------------------------------------------
MISCELLANEOUS--1.8%
275M Monarch Marking Systems, Inc., 12 1/2%, 2003 288,750 184
- ------------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--8.4%
400M Gaylord Container Corp., 11 1/2%, 2001 413,000 265
200M Rainy River Forest Products Co., Inc., 10 3/4%, 2001 220,750 141
350M S.D. Warren Co., Inc., 12%, 2004 386,750 247
300M Stone Container Corp., 9 7/8%, 2001 292,875 187
- ------------------------------------------------------------------------------------------------------
1,313,375 840
- ------------------------------------------------------------------------------------------------------
RETAIL-FOOD/DRUG--1.2%
200M Penn Traffic Co., 10 1/4%, 2002 191,750 122
- ------------------------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
1M Barry's Jewelers, Inc., 12 5/8%, 1996 374 --
- ------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--3.3%
450M American Communication Services, Inc., 0%-13%, 2005 (Note 5) 247,500 158
250M CAI Wireless Systems, Inc., 12 1/4%, 2002 268,125 171
- ------------------------------------------------------------------------------------------------------
515,625 329
- ------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS HIGH YIELD FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
PRINCIPAL EACH $10,000
AMOUNT OR OF NET
SHARES SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
TRANSPORTATION-- 3.9%
$ 300M Moran Transportation Co., 11 3/4%, 2004 $ 283,500 $ 181
350M Trism, Inc., 10 3/4%, 2000 341,250 218
- ------------------------------------------------------------------------------------------------------
624,750 399
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF CORPORATE BONDS (cost $14,407,320) 14,388,364 9,182
- ------------------------------------------------------------------------------------------------------
COMMON STOCKS--.9%
ELECTRICAL EQUIPMENT--.1%
648 *Thermadyne Holdings Corporation 11,745 7
- ------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--.2%
2,400 *Olympic Financial Ltd. 39,000 25
- ------------------------------------------------------------------------------------------------------
GAMING/LODGING--.0%
5,063 *Divi Hotels, Inc. 380 --
2,000 *Gold River Hotel & Casino Corp., Series "B" 375 --
- ------------------------------------------------------------------------------------------------------
755 --
- ------------------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--.6%
3,900 *Echostar Communications Class "A" 94,575 60
- ------------------------------------------------------------------------------------------------------
RETAIL/GENERAL MERCHANDISE--.0%
1 *Barry's Jewelers, Inc. 3 --
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF COMMON STOCKS (cost $150,046) 146,078 92
- ------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--5.4%
FINANCIAL SERVICES--2.1%
3,000 California Federal Bank, 10 5/8%, Series "B" 325,500 208
- ------------------------------------------------------------------------------------------------------
MEDIA/CABLE TELEVISION--1.5%
212 PanAmSat Capital Corp., 12 3/4% 239,040 153
- ------------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--1.8%
9,000 *S.D. Warren Co., Inc., 14% 288,000 184
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF PREFERRED STOCKS (cost $763,180) 852,540 545
- ------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
OF NET
WARRANTS SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
WARRANTS--.3%
BUILDING MATERIALS--.0%
5,900 *Waxman Industries, Inc. (expiring 6/1/04)(Note 5) $ 2,950 $ 2
- ------------------------------------------------------------------------------------------------------
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) 5,400 3
800 *SHRP Capital Corp. (expiring 7/15/99)(Note 5) -- --
- ------------------------------------------------------------------------------------------------------
8,579 5
- ------------------------------------------------------------------------------------------------------
MINING/METALS--.0%
200 *Gulf State Steel Acquisition Corp. (expiring 4/1/03) 100 --
- ------------------------------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS--.2%
9,000 *S.D. Warren Co., Inc. (expiring 12/15/06)(Note 5) 45,000 29
- ------------------------------------------------------------------------------------------------------
RETAIL-GENERAL MERCHANDISE--.0%
100 *Payless Cashways, Inc. (expiring 11/1/96) 25 --
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF WARRANTS (cost $14,362) 56,654 36
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $15,334,908) 98.5% 15,443,636 9,855
OTHER ASSETS, LESS LIABILITIES 1.5 228,810 145
- ------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $15,672,446 $ 10,000
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing
See notes to financial statements 17
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS--98.2%
ARIZONA--4.0%
$ 250M Maricopa County, Arizona Dev. Auth. Hosp. Facs. Rev.
Samaritan Health Services Series "A" 7%, 12/1/2016 $ 307,187 $ 231
200M Maricopa County, Arizona Sch. Dist. No. 80 (Chandler) 6 1/4%,
7/1/2011 222,500 167
- ------------------------------------------------------------------------------------------------------
529,687 398
- ------------------------------------------------------------------------------------------------------
CALIFORNIA--14.3%
250M Fresno, California Sewer Authority 6 1/4%, 9/1/2014 280,313 210
Los Angeles County, Calif. Transportation Comm. Sales Tax
Revenue:
100M 6 3/4%, 7/1/2001* 113,500 85
100M 6.9%, 7/1/2001* 114,125 86
250M San Francisco, Calif. City & County Parking Auth. 7%, 6/1/2017 291,875 219
500M San Francisco, Calif. City & County Redev. Agcy. 6 3/4%, 7/1/2015 558,125 418
250M San Jose Redev. Agency Tax Allocation 6%, 8/1/2015 273,750 205
250M Santa Ana, Calif. Finance Authority 6 1/4%, 7/1/2015 281,250 211
- ------------------------------------------------------------------------------------------------------
1,912,938 1,434
- ------------------------------------------------------------------------------------------------------
COLORADO--6.2%
425M Aurora, Colorado Postsecondary Education Foundation 6%, 9/1/2015 444,656 333
350M Roaring Fork, Colorado General Obligation 6.6%, 12/15/2014 380,625 285
- ------------------------------------------------------------------------------------------------------
825,281 618
- ------------------------------------------------------------------------------------------------------
CONNECTICUT--3.2%
400M Connecticut State Special Tax Oblig. Rev. 6.1%, 10/1/2011 427,500 320
- ------------------------------------------------------------------------------------------------------
FLORIDA--2.0%
250M Tampa, Florida Sales Tax Revenue 5 3/4%, 10/1/2020 265,313 199
- ------------------------------------------------------------------------------------------------------
GEORGIA--.8%
100M Cherokee County Water & Sewer Auth. Rev. 7.1%, 8/1/2000* 113,625 85
- ------------------------------------------------------------------------------------------------------
ILLINOIS--5.9%
100M Du Paige Water Commission, Illinois Water Rev. 6 7/8%, 5/1/1997* 105,750 79
500M Illinois Dev. Fin. Auth. Rev. (Rockford School 205) 6.55%,
2/1/2009 558,125 418
100M Will County School District General Obligation 7.1%, 12/1/2009 119,500 90
- ------------------------------------------------------------------------------------------------------
783,375 587
- ------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
INDIANA--1.1%
$ 130M Delaware Cnty. Hosp. Auth. (Ball Memorial Hosp.) 6 5/8%, 8/1/2006 $ 142,675 $ 107
- ------------------------------------------------------------------------------------------------------
MAINE--2.0%
250M Maine Municipal Bond Bank 6 1/2%, 11/1/2014 274,062 205
- ------------------------------------------------------------------------------------------------------
MASSACHUSETTS--4.0%
500M Mass. Bay Transn. Auth. Gen. Sys. Series "A" 5.8%, 3/1/2013 530,000 397
- ------------------------------------------------------------------------------------------------------
MICHIGAN--6.3%
325M Detroit Sewer Disposal System Revenue 5%, 7/1/2025 309,562 232
1,000M Howell, Michigan Public Schools General Obligation Zero Cpn.
5/1/2006* 275,000 206
250M Oakland University Revenue 5 3/4%, 5/15/2015 257,500 193
- ------------------------------------------------------------------------------------------------------
842,062 631
- ------------------------------------------------------------------------------------------------------
MISSOURI--6.0%
200M Liberty, Missouri Sewer System Rev. 6.15%, 2/1/2015 216,500 162
500M Missouri State Health & Educational Facilities Authority
BJC Health Systems Series "A" 6 3/4%, 5/15/2010 583,750 438
- ------------------------------------------------------------------------------------------------------
800,250 600
- ------------------------------------------------------------------------------------------------------
NEVADA--.7%
80M Reno Hosp. Rev. (St. Mary's Hospital) 7 3/4%, 1/1/2000* 91,500 69
- ------------------------------------------------------------------------------------------------------
NEW JERSEY--5.8%
485M New Jersey Housing & Mortgage Fin. Rev. 6.55%, 10/1/2010 520,768 390
250M West Monmouth Utility Authority 5.6%, 2/1/2014 255,938 192
- ------------------------------------------------------------------------------------------------------
776,706 582
- ------------------------------------------------------------------------------------------------------
NEW YORK--2.4%
290M New York City Municipal Water Fin. Auth. 5 7/8%, 6/15/2012 313,200 235
- ------------------------------------------------------------------------------------------------------
OKLAHOMA--4.3%
500M Grand River Dam Authority Revenue 6 1/4%, 6/1/2011 569,375 427
- ------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
EXECUTIVE INVESTORS INSURED TAX EXEMPT FUND
December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
AMOUNT
INVESTED FOR
EACH $10,000
PRINCIPAL OF NET
AMOUNT SECURITY VALUE ASSETS
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
PENNSYLVANIA--10.7%
$ 200M Jeannette, Pa. School District General Obligation 6.65%,
6/15/2001* $ 222,000 $ 166
400M Pennsylvania State Ind. Dev. Auth. 5 1/2%, 1/1/2014 404,500 303
400M Pennsylvania State Turnpike Commission Revenue 5 1/2%, 12/1/2012 407,000 305
350M Philadelphia Water & Wastewater Revenue 6 1/4%, 8/1/2012 391,563 293
- ------------------------------------------------------------------------------------------------------
1,425,063 1,067
- ------------------------------------------------------------------------------------------------------
PUERTO RICO--4.4%
545M Puerto Rico Indl. Tourist Edl. Med. & Env. Ctl. Facs. 6 1/4%,
7/1/2016 587,919 441
- ------------------------------------------------------------------------------------------------------
RHODE ISLAND--1.7%
200M Rhode Island Convention Center Authority Series "A" 6.7%,
5/15/2001* 225,500 170
- ------------------------------------------------------------------------------------------------------
TEXAS--10.5%
505M Austin, Texas Utilities System Rev. 6%, 11/15/2013 552,975 414
500M Harris County General Obligation 6 1/2%, 8/15/2013 570,000 427
250M Houston Water Conveyance System Cert. of Part. 6 1/4%, 12/15/2012 279,688 210
- ------------------------------------------------------------------------------------------------------
1,402,663 1,051
- ------------------------------------------------------------------------------------------------------
VIRGINIA--1.9%
250M Norfolk, Virginia Water Revenue 5.6%, 11/1/2011 257,500 193
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF MUNICIPAL BONDS (cost $11,925,468) 13,096,194 9,816
- ------------------------------------------------------------------------------------------------------
SHORT-TERM TAX EXEMPT INVESTMENTS--.7%
NEW YORK
100M New York State Energy Pollution Control 5.5%(a) (cost $100,000) 100,000 75
- ------------------------------------------------------------------------------------------------------
TOTAL VALUE OF INVESTMENTS (cost $12,025,468) 98.9% 13,196,194 9,891
OTHER ASSETS, LESS LIABILITIES 1.1 146,296 109
- ------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $13,342,490 $ 10,000
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
</TABLE>
(a)Interest rates are determined and reset daily by the issuer. Interest rate
shown is the rate in effect at December 31, 1995.
*Municipal Bonds which have been prerefunded are shown maturing at the
prerefunded call date.
20 See notes to financial statements
<PAGE>
Statement of Assets and Liabilities
EXECUTIVE INVESTORS TRUST
December 31, 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....................................... $ 1,054,303 $ 15,334,908 $ 12,025,468
------------- ------------- -------------
------------- ------------- -------------
At value (Note 1A)....................................... $ 1,352,378 $ 15,443,636 $ 13,196,194
Cash....................................................... 77,987 21,938 22,124
Receivables:
Interest and dividends................................... 2,200 326,567 198,326
Trust shares sold........................................ 609 853 28,778
Other assets............................................... 4 4,966 17
------------- ------------- -------------
Total Assets............................................... 1,433,178 15,797,960 13,445,439
------------- ------------- -------------
LIABILITIES
Payables:
Dividends payable January 15, 1996....................... 4,946 68,946 85,188
Trust shares redeemed.................................... -- 6,282 1,632
Accrued expenses........................................... 1,724 44,389 16,129
Accrued advisory fee....................................... -- 5,897 --
------------- ------------- -------------
Total Liabilities.......................................... 6,670 125,514 102,949
------------- ------------- -------------
NET ASSETS................................................. $ 1,426,508 $ 15,672,446 $ 13,342,490
------------- ------------- -------------
------------- ------------- -------------
NET ASSETS CONSIST OF:
Capital paid in............................................ $ 1,125,802 $ 20,424,083 $ 12,169,811
Undistributed net investment income........................ 2,631 95,103 1,953
Accumulated net realized loss on investment transactions... -- (4,955,468) --
Net unrealized appreciation in value of investments........ 298,075 108,728 1,170,726
------------- ------------- -------------
Total...................................................... $ 1,426,508 $ 15,672,446 $ 13,342,490
------------- ------------- -------------
------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING.................. 87,409 2,063,556 950,251
------------- ------------- -------------
------------- ------------- -------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(Net assets divided by trust shares outstanding)......... $16.32 $7.59 $14.04
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value/.9525)*................................. $17.13 $7.97 $14.74
*On purchases of $100,000 or more, the sales charge is
reduced.
</TABLE>
See notes to financial statements 21
<PAGE>
STATEMENT OF OPERATIONS
EXECUTIVE INVESTORS TRUST
Year Ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXECUTIVE INVESTORS
-------------------------------------------
BLUE CHIP HIGH YIELD INSURED TAX
FUND FUND EXEMPT FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest.................................................................. $ 1,512 $ 1,610,315 $ 696,385
Dividends................................................................. 28,660 45,877 --
Consent fees.............................................................. -- 23,579 --
------------- ------------- -------------
Total income................................................................ 30,172 1,679,771 696,385
------------- ------------- -------------
Expenses (Notes 1 and 3):
Advisory fee.............................................................. 12,118 154,785 119,019
Distribution plan expenses................................................ 6,059 77,393 59,509
Professional fees......................................................... 2,229 17,857 10,188
Shareholder servicing costs............................................... 2,253 19,569 6,929
Reports and notices to shareholders....................................... 583 11,573 3,233
Custodian fees............................................................ 2,392 5,749 4,080
Other expenses............................................................ 1,028 7,306 3,879
------------- ------------- -------------
Total expenses.............................................................. 26,662 294,232 206,837
Less: Expenses waived or assumed............................................ (20,603) (85,132) (147,328)
Custodian fees paid indirectly......................................... -- (2,922) --
------------- ------------- -------------
Net expenses................................................................ 6,059 206,178 59,509
------------- ------------- -------------
Net investment income....................................................... 24,113 1,473,593 636,876
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note 2):
Net realized gain (loss) on investments..................................... 61,724 (264,699) 288,360
Net unrealized appreciation of investments.................................. 282,537 1,510,599 1,271,346
------------- ------------- -------------
Net gain on investments..................................................... 344,261 1,245,900 1,559,706
------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 368,374 $ 2,719,493 $ 2,196,582
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
22 See notes to financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
EXECUTIVE INVESTORS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXECUTIVE INVESTORS
--------------------------------------------------------------------------
INSURED TAX
BLUE CHIP FUND HIGH YIELD FUND EXEMPT FUND
---------------------- ------------------------ ------------------------
Year Ended December 31 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income............ $ 24,113 $ 17,589 $ 1,473,593 $ 1,420,987 $ 636,876 $ 531,033
Net realized gain (loss) on
investments.................... 61,724 70,824 (264,699) 80,680 288,360 (27,483)
Net unrealized appreciation
(depreciation) of
investments.................... 282,537 (102,509) 1,510,599 (1,873,704) 1,271,346 (894,199)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................... 368,374 (14,096) 2,719,493 (372,037) 2,196,582 (390,649)
---------- ---------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............ (23,522) (15,549) (1,414,951) (1,486,797) (638,733) (538,977)
Net realized gains............... (61,724) (70,824) -- -- (260,877) --
---------- ---------- ----------- ----------- ----------- -----------
Total distributions............ (85,246) (86,373) (1,414,951) (1,486,797) (899,610) (538,977)
---------- ---------- ----------- ----------- ----------- -----------
TRUST SHARE TRANSACTIONS(a)
Proceeds from shares sold........ 209,332 307,337 1,793,924 4,684,633 2,766,768 2,357,147
Value of distributions
reinvested..................... 79,327 83,856 578,661 659,544 538,422 271,847
Cost of shares redeemed.......... (186,017) (206,473) (3,146,609) (2,574,747) (1,622,298) (783,306)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) from
trust share transactions..... 102,642 184,720 (774,024) 2,769,430 1,682,892 1,845,688
---------- ---------- ----------- ----------- ----------- -----------
Net increase in net assets... 385,770 84,251 530,518 910,596 2,979,864 916,062
NET ASSETS
Beginning of year................ 1,040,738 956,487 15,141,928 14,231,332 10,362,626 9,446,564
---------- ---------- ----------- ----------- ----------- -----------
End of year+..................... $1,426,508 $1,040,738 $15,672,446 $15,141,928 $13,342,490 $10,362,626
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
+ Includes undistributed net
investment income of............. $ 2,631 $ 2,040 $ 95,103 $ 36,461 $ 1,953 $ 3,810
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
(a)TRUST SHARES ISSUED AND REDEEMED
Sold............................. 13,332 21,798 244,106 620,568 201,812 180,398
Issued for distributions
reinvested..................... 4,767 6,516 78,556 89,317 39,073 21,136
Redeemed......................... (12,330) (14,678) (429,347) (343,344) (117,810) (60,322)
---------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in
trust shares................. 5,769 13,636 (106,685) 366,541 123,075 141,212
---------- ---------- ----------- ----------- ----------- -----------
---------- ---------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements 23
<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. The objective of each Fund is as
follows:
BLUE CHIP FUND seeks high total investment return consistent with the
preservation of capital.
HIGH YIELD FUND primarily seeks high current income and secondarily seeks
capital appreciation.
INSURED TAX EXEMPT FUND seeks to provide a high level of interest income which
is exempt from Federal income tax.
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 December 31, 1995, the High
Yield Fund had
24
<PAGE>
capital loss carryovers of $4,862,452 of which $3,364,392 expires in 1998,
$1,286,892 expires in 1999 and $211,168 expires in 2003.
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.
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 regula-
tions 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. Shares of stock received in lieu of
cash dividends on certain preferred stock holdings are recognized as dividend
income and recorded at the market value of the shares received. During the year
ended December 31, 1995, the High Yield Fund recognized $13,430 of dividend
income from these taxable "pay in kind" distributions. The Funds' custodian has
provided credits in the amount of $8,130 against custodian charges based on the
uninvested cash balances of the Funds.
2. SECURITY TRANSACTIONS--For the year ended December 31, 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....................... $444,533 $10,485,671 $18,495,474
----------- ----------- -----------
----------- ----------- -----------
Proceeds of sales....................... $380,144 $11,045,476 $17,059,511
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS
EXECUTIVE INVESTORS TRUST
At December 31, 1995, aggregate cost and net unrealized appreciation 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.......................... $ 1,054,303 $15,334,908 $12,025,468
----------- ------------ -----------
----------- ------------ -----------
Unrealized appreciation................. $ 310,765 $ 720,817 $ 1,170,726
Unrealized depreciation................. 12,690 612,089 --
----------- ------------ -----------
Net unrealized appreciation............. $ 298,075 $ 108,728 $ 1,170,726
----------- ------------ -----------
----------- ------------ -----------
</TABLE>
3. 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 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 $285,922 of
which $216,269 was waived. In addition, expenses of $22,404 were assumed by
EIMCO.
Pursuant to certain state regulations, EIMCO has agreed to reimburse each Fund
if and to the extent that each 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
year ended December 31, 1995, no reimbursement was required pursuant to these
provisions.
For the year ended December 31, 1995, EIC, as underwriter of the Trust, received
$17,113 in commissions after allowing $11,245 to FIC and $112,534 to other
dealers. Shareholder servicing costs consist of $26,057 in transfer agent fees
and out of pocket expenses accrued to ADM, (of which $8,663 was waived by ADM)
and $2,694 in custodian fees (of which $519 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
26
<PAGE>
or other securities dealers for the ongoing servicing of their clients who are
shareholders of any of the Funds.
4. 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 December 31, 1995, the
High Yield Fund held one defaulted security with a value of $75,000 representing
less than 1/2 of 1% of the High Yield Fund's net assets.
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 December 31, 1995, the High
Yield Fund held eight 144A securities with an aggregate value of $1,001,850
representing 6.4% of the High Yield Fund's net assets. These securities are
valued as set forth in Note 1A.
27
<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
Realized Less Distributions
Net Asset and from
Value Unrealized Total ---------------------
--------- Net Gain (Loss) 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
1995............................... 12.75 .30 4.30 4.60 .29 .74 1.03
HIGH YIELD FUND
- -----------------------------------
3/24/87* to 12/31/87............... 9.60 .73 (1.12) (.39) .74 -- .74
1988............................... 8.47 1.22 .52 1.74 1.20 -- 1.20
1989............................... 9.01 1.18 (1.25) (.07) 1.20 -- 1.20
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
1995............................... 6.98 .70 .58 1.28 .67 -- .67
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
1995............................... 12.53 .72 1.80 2.52 .73 .28 1.01
<FN>
(a)Annualized
*Commencement of operations
**Calculated without sales charges
+Some or all expenses have been waived or assumed from commencement of
operations through December 31, 1995 (Note 3).
</TABLE>
28 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 Investment Investment Turnover
End of Return** Period (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)(a) $ 313 -- 2.74(a) 4.67(a) (1.93)(a) 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
1995............................... 16.32 36.30 1,427 .50 1.99 2.20 .29 33
HIGH YIELD FUND
- -----------------------------------
3/24/87* to 12/31/87............... 8.47 (5.55)(a) 1,156 -- 7.06(a) 1.78(a) 5.27(a) 27
1988............................... 9.01 21.31 9,205 -- 13.63 2.14 11.49 56
1989............................... 7.74 (1.11) 20,335 -- 13.61 1.82 11.79 36
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
1995............................... 7.59 19.08 15,672 1.35 9.50 1.90 8.95 69
INSURED TAX EXEMPT FUND
- -----------------------------------
7/26/90* to 12/31/90............... 11.71 8.00(a) 653 .09(a) 4.41(a) 1.70(a) 2.79(a) 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
1995............................... 14.04 20.53 13,342 .50 5.35 1.74 4.11 147
<FN>
(a)Annualized
*Commencement of operations
**Calculated without sales charges
+Some or all expenses have been waived or assumed from commencement of
operations through December 31, 1995 (Note 3).
</TABLE>
29
<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 December 31, 1995, the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, 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 December 31, 1995, by correspondence with the custodian. 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 December 31, 1995, and the
results of their operations, changes in their net assets and the financial
highlights for each of the respective periods presented, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 31, 1996
30
<PAGE>
EXECUTIVE INVESTORS TRUST
TRUSTEES
- -------------------------------------------
JAMES J. COY
ROGER L. GRAYSON
GLENN O. HEAD
KATHRYN S. HEAD
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 Massachusetts Avenue, 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.
31
<PAGE>
EXECUTIVE
INVESTORS
TRUST
Blue Chip Fund
High Yield Fund
Insured Tax Exempt Fund
ANNUAL
REPORT
DECEMBER 31, 1995
Vertically reading from bottom to top in the center of the page the words
"EXECUTIVE INVESTORS" appear.
The following language appears to the left of the above language:
The words "BULK RATE U.S. POSTAGE PAID PERMIT NO. 7379" in a box to the right of
a circle containing the words "MAILED FROM ZIP CODE 11201" appears on the
righthand side.
The following language appears on the lefthand side:
EXECUTIVE INVESTORS TRUST
95 WALL STREET
NEW YORK, NY 10005
EIHY-107
