<PAGE>
TMK/UNITED FUNDS, INC.
SEMIANNUAL
REPORT
--------------------------------------
For the six months ended June 30, 1995
<PAGE>
This report is submitted for the general information of the shareholders of
TMK/United Funds, Inc. It is not authorized for distribution to prospective
investors in the Fund unless accompanied with or preceded by the TMK/United
Funds, Inc. current prospectus.
<PAGE>
PRESIDENT'S LETTER
JUNE 30, 1995
Dear Policyholder:
As President of your Fund, I would like to thank you for your continued
confidence in our products and services. We strive to provide the best service
possible to our shareholders: from the Fund's manager to your personal account
representative and the Waddell & Reed office nearest you.
While personalized service has become increasingly rare in the investment
industry, we remain committed to locally based account representatives who
provide the personal service you need. They are ready to assist you through
regular reviews of your financial plan and to answer any financial questions
you may have. Your account representative is anxious to help you plan for your
retirement, fund a child's education or make plans for other long-term
financial goals.
We want to help you open the door to a better financial future. We will
continue to help you meet your specific financial needs through quality
investment products and personalized service that makes the investment process
more convenient and accessible for you.
Should you have any questions about your account or other financial
issues, contact your personal account representative or your local Waddell &
Reed office. They're ready to help you make the most of your financial future.
Respectfully,
Keith A. Tucker
President
<PAGE>
THE INVESTMENTS OF THE GROWTH PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Banks and Savings and Loans - 14.85%
Ahmanson (H. F.) & Company ............. 75,000 $ 1,650,000
Bank of Boston Corporation ............. 50,000 1,875,000
BankAmerica Corporation ................ 75,000 3,946,875
Barnett Banks, Inc. .................... 50,000 2,562,500
BayBanks, Inc. ......................... 25,000 1,984,375
Boatmen's Bancshares, Inc. ............. 100,000 3,518,700
Brooklyn Bancorp, Inc.* ................ 79,200 2,653,200
California Federal Bank, F.S.B.* ....... 150,000 1,968,750
Calumet Bancorp, Inc.* ................. 25,000 671,875
Chemical Banking Corporation ........... 80,000 3,780,000
City National Corporation .............. 125,000 1,421,875
Compass Bancshares, Inc. ............... 75,000 2,151,525
Crestar Financial Corporation .......... 50,000 2,450,000
Dime Bancorp, Inc.* ..................... 100,000 1,000,000
First Fidelity Bancorporation .......... 50,000 2,950,000
Great Western Financial Corporation .... 75,000 1,546,875
Midlantic Corporation .................. 200,000 7,975,000
Northern Trust Corporation ............. 75,000 3,000,000
Roosevelt Financial Group, Inc. ........ 200,000 3,325,000
Total ................................. 50,431,550
Biotechnology and Medical Services - 1.50%
Centocor, Inc.* ........................ 200,000 2,875,000
Ventritex, Inc.* ....................... 35,600 598,507
Zoll Medical Corporation* .............. 125,000 1,609,375
Total ................................. 5,082,882
Building - 0.43%
United Dominion Realty Trust, Inc. ..... 100,000 1,475,000
Chemicals Major - 2.02%
du Pont (E.I.) de Nemours and Company .. 100,000 6,875,000
Chemicals Specialty and Miscellaneous Technology - 1.90%
Geon Company (The) ..................... 130,000 3,737,500
IMC Global, Inc. ....................... 50,000 2,706,250
Total ................................. 6,443,750
Computers and Office Equipment - 10.07%
Adobe Systems Incorporated ............. 70,000 4,077,500
America Online, Inc.* .................. 85,000 3,718,750
Automatic Data Processing, Inc. ........ 70,000 4,401,250
Broderbund Software, Inc.* ............. 40,000 2,545,000
General Motors Corporation, Class E .... 185,000 8,047,500
HBO & Company .......................... 50,000 2,731,250
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE GROWTH PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Computers and Office Equipment (Continued)
Inference Corporation, Class A* ......... 10,500 $ 148,313
NETCOM On-Line Communication Services,
Inc.* ................................. 30,000 770,610
Oracle Systems Corporation* ............. 125,000 4,820,250
Seagate Technology, Inc.* ............... 75,000 2,943,750
Total ................................. 34,204,173
Drugs and Hospital Supply - 8.31%
Baxter International Inc. .............. 100,000 3,637,500
Bristol-Myers Squibb Company ........... 70,000 4,768,750
Merck & Co., Inc. ...................... 150,000 7,350,000
Schering-Plough Corporation ............ 83,600 3,688,850
SmithKline Beecham plc, ADR ............ 100,000 4,525,000
United States Surgical Corporation ..... 100,000 2,087,500
Warner-Lambert Company ................. 25,000 2,159,375
Total ................................. 28,216,975
Electrical Equipment - 1.05%
Emerson Electric Co. ................... 50,000 3,575,000
Electronics - 11.90%
Analog Devices, Inc.* .................. 75,000 2,550,000
Applied Materials, Inc.* ............... 40,000 3,460,000
Cascade Communications Corp.* .......... 40,000 1,725,000
cisco Systems, Inc.* ................... 75,000 3,792,150
Digital Link Corporation* .............. 75,000 2,146,875
Hewlett-Packard Company ................ 50,000 3,725,000
Intel Corporation ...................... 120,000 7,597,440
LSI Logic Corporation* ................. 45,000 1,760,625
Micron Technology, Inc. ................ 75,000 4,115,625
Silicon Valley Group, Inc.* ............ 75,000 2,723,400
Summa Four, Inc.* ...................... 125,000 3,484,375
Texas Instruments Incorporated ......... 25,000 3,346,875
Total ................................. 40,427,365
Financial - 2.15%
Federal National Mortgage Association .. 30,000 2,831,250
First USA, Inc. ........................ 40,000 1,775,000
Regional Acceptance Corporation* ....... 150,000 2,700,000
Total ................................. 7,306,250
Food and Related - 1.01%
Ralcorp Holdings* ...................... 150,000 3,431,250
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE GROWTH PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Hospital Management - 2.51%
Columbia/HCA Healthcare Corporation .... 100,000 $ 4,325,000
Quorum Health Group, Inc.* ............. 100,000 2,006,200
Sierra Health Services, Inc.* .......... 89,300 2,187,850
Total ................................. 8,519,050
Household Products - 1.35%
Procter & Gamble Company (The) ......... 25,000 1,796,875
Rubbermaid Incorporated ................ 100,000 2,775,000
Total ................................. 4,571,875
Insurance - 6.13%
Chubb Corporation (The) ................ 50,000 4,006,250
First Colony Corporation ............... 125,000 3,000,000
National Re Corporation ................ 93,100 3,118,850
PMI Group, Inc. (The) .................. 40,600 1,761,025
St. Paul Companies, Inc. (The) ......... 100,000 4,925,000
TIG Holdings, Inc. ..................... 175,000 4,025,000
Total ................................. 20,836,125
Leisure Time - 7.79%
Boston Chicken, Inc.* .................. 75,000 1,814,025
Capital Cities/ABC, Inc. ............... 25,000 2,700,000
Comcast Corporation, Class A ........... 300,000 5,568,600
Tele-Communications, Inc., Class A* .... 200,000 4,687,400
Time Warner Incorporated ............... 100,000 4,112,500
Viacom Inc., Class B* .................. 125,000 5,796,875
Wendy's International, Inc. ............ 100,000 1,787,500
Total ................................. 26,466,900
Machinery - 0.72%
Keystone International, Inc. ........... 125,000 2,453,125
Multi-Industry - 3.53%
Berkshire Hathaway Inc.* ............... 10 234,500
ITT Corporation ........................ 100,000 11,750,000
Total ................................. 11,984,500
Paper - 4.33%
Bowater Incorporated ................... 150,000 6,731,250
Champion International Corporation ..... 30,000 1,563,750
James River Corporation of Virginia .... 125,000 3,453,125
Mead Corporation (The)* ................ 50,000 2,968,750
Total ................................. 14,716,875
Publishing and Advertising - 0.67%
News Corporation Limited (The), ADR .... 100,000 2,262,500
Railroads - 1.92%
Conrail Inc. ........................... 75,000 4,171,875
Southern Pacific Rail Corporation* ..... 150,000 2,362,500
Total ................................. 6,534,375
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE GROWTH PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Retailing - 2.82%
Borders Group, Inc.* ................... 236,000 $ 3,392,500
Charming Shoppes Inc. .................. 100,000 531,200
Family Dollar Stores, Inc. ............. 225,000 3,318,750
Mercantile Stores Company, Inc. ........ 50,000 2,325,000
Total ................................. 9,567,450
Services, Consumer and Business - 0.91%
Block (H & R), Inc. .................... 75,000 3,084,375
Telecommunications - 8.50%
ADC Telecommunications, Inc.* .......... 31,500 1,122,187
AirTouch Communications* ............... 125,000 3,562,500
Ascend Communications, Inc.* ........... 40,000 2,025,000
AT&T Corporation ....................... 150,000 7,968,750
MCI Communications Corporation ......... 200,000 4,387,400
MFS Communications Company, Inc.* ...... 125,000 4,000,000
Nokia Corporation, ADS ................. 50,000 2,981,250
Ortel Corporation* ..................... 190,200 2,805,450
Total ................................. 28,852,537
TOTAL COMMON STOCKS - 96.37% $327,318,882
(Cost: $306,926,055)
PREFERRED STOCKS - 0.90%
Building
National Health Investors, Inc.,
Convertible ........................... 125,000 $ 3,062,500
(Cost: $3,048,040)
TOTAL SHORT-TERM SECURITIES - 2.59% $ 8,791,976
(Cost: $8,791,976)
TOTAL INVESTMENT SECURITIES - 99.86% $339,173,358
(Cost: $318,766,071)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.14% 460,500
NET ASSETS - 100.00% $339,633,858
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Aerospace - 1.42%
Boeing Company (The) ................... 44,500 $ 2,786,813
Sundstrand Corporation ................. 21,000 1,254,750
Total ................................. 4,041,563
Airlines - 2.66%
AMR Corporation* ....................... 28,000 2,089,500
Southwest Airlines Co. ................. 162,000 3,867,750
USAir Group, Inc.* ..................... 139,000 1,615,875
Total ................................. 7,573,125
Automotive - 5.40%
Chrysler Corporation ................... 75,500 3,614,563
Dana Corporation ....................... 53,000 1,517,125
Eaton Corporation ...................... 35,000 2,034,375
Ford Motor Company ..................... 130,500 3,882,375
General Motors Corporation ............. 69,500 3,257,813
Magna International Inc., Class A ...... 24,500 1,081,062
Total ................................. 15,387,313
Banks and Savings and Loans - 2.55%
Citicorp ............................... 52,000 3,009,500
First Bank System, Inc. ................ 35,000 1,435,000
First Interstate Bancorp ............... 21,000 1,685,250
Midlantic Corporation .................. 28,000 1,116,500
Total ................................. 7,246,250
Beverages - 1.08%
PepsiCo, Inc. .......................... 67,500 3,079,687
Biotechnology and Medical Services - 1.35%
Centocor, Inc.* ........................ 14,000 201,250
Medtronic, Inc. ........................ 28,000 2,159,500
Ventritex, Inc.* ....................... 89,000 1,496,268
Total ................................. 3,857,018
Building - 6.71%
Armstrong World Industries, Inc. ....... 62,500 3,132,813
Centex Corporation ..................... 134,400 3,796,800
Georgia-Pacific Corporation ............ 29,500 2,559,125
Louisiana-Pacific Corporation .......... 70,000 1,837,500
Pulte Corporation ...................... 148,900 4,169,200
Temple-Inland Inc. ..................... 24,500 1,166,812
Weyerhaeuser Company ................... 52,000 2,450,500
Total ................................. 19,112,750
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Chemicals Major - 6.51%
Air Products and Chemicals, Inc. ....... 70,000 $ 3,902,500
Albemarle Corporation .................. 72,800 1,137,500
Dow Chemical Company (The) ............. 17,500 1,257,812
du Pont (E.I.) de Nemours and Company .. 68,500 4,709,375
PPG Industries, Inc. ................... 87,000 3,741,000
Praxair, Inc. .......................... 69,500 1,737,500
Union Carbide Corporation .............. 61,000 2,035,875
Total ................................. 18,521,562
Chemicals Specialty and Miscellaneous Technology - 3.77%
Geon Company (The) ..................... 100,600 2,892,250
IMC Global, Inc. ....................... 29,400 1,591,275
Polaroid Corporation ................... 97,500 3,973,125
Xerox Corporation ...................... 19,500 2,286,375
Total ................................. 10,743,025
Computers and Office Equipment - 4.57%
Computer Associates International, Inc. 17,500 1,185,625
General Motors Corporation, Class E .... 75,800 3,297,300
International Business Machines
Corporation ........................... 35,000 3,360,000
Microsoft Corporation* ................. 21,000 1,899,177
Oracle Systems Corporation* ............ 84,700 3,266,201
Total ................................. 13,008,303
Consumer Electronics and Appliances - 1.36%
Harman International Industries,
Incorporated .......................... 23,000 931,500
Whirlpool Corporation .................. 53,500 2,942,500
Total ................................. 3,874,000
Drugs and Hospital Supply - 0.95%
Bristol-Myers Squibb Company ........... 19,500 1,328,438
Merck & Co., Inc. ...................... 28,000 1,372,000
Total ................................. 2,700,438
Electrical Equipment - 2.34%
Emerson Electric Co. ................... 28,000 2,002,000
General Electric Company ............... 82,500 4,650,937
Total ................................. 6,652,937
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Electronics - 11.98%
AMP Incorporated ....................... 77,000 $ 3,253,250
Analog Devices, Inc.* .................. 193,200 6,568,800
Applied Materials, Inc.* ............... 60,000 5,190,000
cisco Systems, Inc.* ................... 69,500 3,514,059
Intel Corporation ...................... 105,000 6,647,760
LSI Logic Corporation* ................. 134,400 5,258,400
Linear Technology Corporation .......... 21,300 1,400,475
Molex Incorporated, Class A ............ 62,550 2,275,256
Total ................................. 34,108,000
Engineering and Construction - 0.86%
Fluor Corporation ...................... 28,000 1,456,000
Foster Wheeler Corporation ............. 28,000 987,000
Total ................................. 2,443,000
Financial - 1.52%
Federal Home Loan Mortgage Corporation . 35,000 2,406,250
Federal National Mortgage Association .. 20,500 1,934,688
Total ................................. 4,340,938
Food and Related - 0.76%
CPC International Inc. ................. 35,000 2,161,250
Hospital Management - 1.40%
Columbia/HCA Healthcare Corporation .... 26,000 1,124,500
Tenet Healthcare Corporation* .......... 69,500 999,062
United HealthCare Corporation .......... 45,000 1,861,875
Total ................................. 3,985,437
Household Products - 3.24%
Colgate-Palmolive Company .............. 42,000 3,071,250
Gillette Company (The) ................. 70,000 3,123,750
Procter & Gamble Company (The) ......... 42,000 3,018,750
Total.................................. 9,213,750
Leisure Time - 2.30%
Walt Disney Company (The) .............. 49,000 2,725,625
McDonald's Corporation ................. 97,500 3,814,687
Total ................................. 6,540,312
Machinery - 6.86%
Case Corporation ....................... 97,500 2,900,625
Caterpillar Inc. ....................... 109,500 7,035,375
Cooper Industries, Inc. ................ 37,000 1,461,500
Deere & Company ........................ 47,500 4,067,187
Ingersoll-Rand Company ................. 28,000 1,071,000
Parker Hannifin Corporation ............ 42,000 1,522,500
Trinova Corporation .................... 42,000 1,470,000
Total ................................. 19,528,187
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Multi-Industry - 2.08%
ITT Corporation ........................ 50,500 $ 5,933,750
Paper - 2.44%
Bowater Incorporated ................... 32,000 1,436,000
International Paper Company ............ 40,500 3,472,875
Union Camp Corporation ................. 35,000 2,025,625
Total ................................. 6,934,500
Railroads - 2.82%
CSX Corporation ........................ 24,500 1,840,563
Conrail Inc. ........................... 42,000 2,336,250
Norfolk Southern Corporation ........... 21,000 1,414,875
Southern Pacific Rail Corporation* ..... 32,000 504,000
Union Pacific Corporation .............. 35,000 1,938,125
Total ................................. 8,033,813
Retailing - 8.37%
Circuit City Stores, Inc. .............. 111,500 3,526,188
Dayton Hudson Corporation .............. 32,500 2,331,875
Gap, Inc. (The) ........................ 49,000 1,708,875
Home Depot, Inc. (The) ................. 53,500 2,173,438
Limited, Inc. (The) .................... 52,000 1,144,000
May Department Stores Company (The) .... 67,500 2,809,688
Nordstrom, Inc. ........................ 26,000 1,074,112
OfficeMax, Inc.* ....................... 46,500 1,296,187
Penney (J.C.) Company, Inc. ............ 47,000 2,256,000
Tommy Hilfiger Corporation* ............ 108,800 3,046,400
Toys "R" Us, Inc.* ..................... 21,000 614,250
Wal-Mart Stores, Inc. .................. 69,500 1,859,125
Total ................................. 23,840,138
Steel - 0.39%
Nucor Corporation ...................... 21,000 1,123,500
Telecommunications - 8.39%
ADC Telecommunications, Inc.* .......... 16,000 570,000
AT&T Corporation ....................... 35,000 1,859,375
BellSouth Corporation .................. 22,000 1,397,000
General Instrument Corporation* ........ 69,500 2,667,063
General Motors Corporation, Class H .... 12,300 485,850
MCI Communications Corporation ......... 130,000 2,851,810
MFS Communications Company, Inc.* ...... 29,900 956,800
Motorola, Inc. ......................... 115,500 7,752,937
Telefonaktiebolaget LM Ericsson,
Class B, ADR ......................... 140,000 2,808,680
Vanguard Cellular Systems, Inc.* ....... 105,000 2,533,125
Total ................................. 23,882,640
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Tire and Rubber - 1.01%
Goodyear Tire & Rubber Company (The) ... 69,500 $ 2,866,875
TOTAL COMMON STOCKS - 95.09% $270,734,061
(Cost: $208,154,290)
TOTAL SHORT-TERM SECURITIES - 4.14% $ 11,788,766
(Cost: $11,788,766)
TOTAL INVESTMENT SECURITIES - 99.23% $282,522,827
(Cost: $219,943,056)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.77% 2,187,966
NET ASSETS - 100.00% $284,710,793
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INTERNATIONAL PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Australia - 1.79%
Westpac Banking Corp. .................. 200,000 $ 723,594
Finland - 7.57%
Enso-Gutzeit Oy ........................ 40,400 365,897
Kymmene Oy ............................. 13,000 404,634
Metsa-Serla Oy, Series B ............... 20,000 889,305
Nokia Corporation, Series K ............ 15,000 891,645
Tampella OY* ........................... 200,000 505,500
Total ................................. 3,056,981
France - 6.55%
Credit Lyonnais SA* .................... 8,000 460,742
Lapeyre S.A. ........................... 6,625 435,631
Pechiney International ................. 30,000 757,529
Societe Industrielle de Transports
Automobiles S.A. ...................... 3,500 497,805
Television Francaise 1-TF1 S.A. ........ 5,000 492,136
Total ................................. 2,643,843
Germany - 18.14%
APCOA Parking Aktiengesellschaft* ...... 9,000 473,034
Computer 2000 AG ....................... 700 242,409
Durr Beteiligungs AG ................... 3,500 1,239,879
Fag Kugelfischer AG .................... 6,000 817,669
GILDEMEISTER Aktiengesellschaft* ....... 11,000 890,688
Mannesmann AG .......................... 3,300 1,007,989
Rheinelektra AG ........................ 550 421,487
Tarkett Aktiengesellschaft, ADS (A)* .... 12,000 312,000
TRAUB AG* .............................. 8,500 1,136,857
VEBA AG ................................ 2,000 785,859
Total ................................. 7,327,871
Hong Kong - 4.90%
First Pacific Company Limited .......... 750,000 663,948
Guangdong Corporation Limited .......... 1,000,000 546,021
HSBC Holdings Plc ...................... 60,000 769,599
Total ................................. 1,979,568
Indonesia - 2.98%
PT Bukaka Teknik Utama, F* ............. 250,000 482,712
PT Matahari Putra Prima, F ............. 347,500 553,940
PT Matahari Putra Prima Rts* ........... 173,750 167,742
Total ................................. 1,204,394
Japan - 1.67%
Hitachi ................................ 50,000 498,584
NEC .................................... 16,000 175,407
Total ................................. 673,991
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INTERNATIONAL PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Korea - 2.50%
Samsung Electronics Co., Ltd., GDR (A)* 19,000 $ 1,009,470
Mexico - 7.57%
Cemex, S.A., CPO Shares, Series A ...... 150,000 508,800
Desc-Sociedad de Fomento Industrial,
S.A. de C.V., Class B* ................ 150,000 498,000
Grupo Carso, S.A. de C.V.,
Series 1A* ............................ 150,000 820,800
Grupo Financiero Bancomer, S.A. de
C.V., B, CPO Shares* .................. 1,746,000 508,435
Telefonos de Mexico S.A. de C.V., ADR .. 24,400 722,850
Total ................................. 3,058,885
Netherlands - 1.59%
Philips Electronics N.V. NY Shares ..... 15,000 641,250
Norway - 4.57%
Den Norske Luftfartselskap A/S,
Series B .............................. 25,000 1,075,225
Kvaerner a.s. .......................... 17,000 772,539
Total ................................. 1,847,764
Phillipines - 1.51%
Universal Robina Corporation ........... 1,200,000 610,807
Spain - 1.85%
Telefonica de Espana, S.A. ............. 58,000 746,997
Sweden - 8.21%
ASTRA AB, Class A ...................... 35,000 1,078,660
Kinnevik AB ............................ 21,500 655,227
Skandia Enskilda Banken, Class A ....... 91,000 472,208
Trelleborg AB, Series B ................ 30,000 350,058
AB Volvo ............................... 40,000 760,519
Total ................................. 3,316,672
United Kingdom - 8.58%
AMEC ................................... 160,000 157,837
BTR PLC ................................ 150,000 762,535
House of Fraser PLC .................... 111,000 224,297
Next plc ............................... 150,000 815,041
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INTERNATIONAL PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
United Kingdom (Continued)
Pilkington PLC ......................... 104,000 $ 288,753
United Biscuits (Holdings) Public
Limited Co. ........................... 75,000 383,057
Vodafone Group Plc ..................... 225,000 835,924
Total ................................. 3,467,444
TOTAL COMMON STOCKS - 79.98% $32,309,531
(Cost: $31,086,924)
PREFERRED STOCKS - 4.92%
Germany
Hornbach-Baumarkt-AG ................... 700 946,356
Marschollek, Lautenschlager und
Partner AG* ........................... 800 520,532
STO AG ................................. 841 519,849
Total ................................. $ 1,986,737
(Cost: $1,673,544)
Principal
Amount in
Thousands
SHORT-TERM SECURITIES
Banks and Savings and Loans - 3.24%
U.S. Bancorp,
Master Note ........................... $ 1,310 1,310,000
Chemicals Major - 2.48%
Olin Corporation,
6.07%, 7-5-95 ......................... 1,000 999,326
Financial - 5.45%
General Motors Acceptance Corporation,
6.08%, 7-17-95 ........................ 1,010 1,007,271
Textron Financial Corp.,
6.05%, 7-26-95 ........................ 1,200 1,194,958
Total ................................. 2,202,229
Food and Related - 2.46%
General Mills, Inc.,
Master Note ........................... 706 706,000
Sara Lee Corporation,
Master Note............................ 287 287,000
Total ................................. 993,000
TOTAL SHORT-TERM SECURITIES - 13.63% $ 5,504,555
(Cost: $5,504,555)
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE INTERNATIONAL PORTFOLIO
JUNE 30, 1995
Value
TOTAL INVESTMENT SECURITIES - 98.53% $39,800,823
(Cost: $38,265,023)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.47% 595,440
NET ASSETS - 100.00% $40,396,263
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE SMALL CAP PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Biotechnology and Medical Services - 5.80%
EP Technologies, Inc.* ................. 50,000 $ 500,000
OmniCare, Inc. ......................... 10,000 271,250
Pyxis Corporation* ..................... 20,000 451,240
St. Jude Medical, Inc. ................. 3,000 150,186
Tecnol Medical Products, Inc.* ......... 10,000 221,250
Ventritex, Inc.* ....................... 12,000 201,744
VidaMed, Inc.* ......................... 30,000 187,500
Total ................................. 1,983,170
Computers and Office Equipment - 19.22%
ACT Networks, Inc.* .................... 12,500 212,500
Adobe Systems Incorporated ............. 10,000 582,500
America Online, Inc.*. ................. 8,000 350,000
ArcSys, Inc.* .......................... 7,300 250,937
Broderbund Software, Inc.* ............. 2,000 127,250
Cerner Corporation* .................... 1,000 60,750
Eagle Point Software Corporation* ...... 20,000 337,500
Electronic Arts Inc.* .................. 8,000 217,496
Integrated Silicon Solution, Inc.* ..... 10,000 521,250
Learning Company (The)* ................ 3,000 107,250
Macromedia, Inc.* ...................... 7,500 325,313
MapInfo Corporation* ................... 5,000 176,875
Medic Computer Systems, Inc.* .......... 1,400 54,250
MicroTouch Systems, Inc.* .............. 25,000 521,875
Minnesota Educational Computing
Corporation* .......................... 10,000 360,000
Parametric Technology Corporation* ..... 12,000 595,500
PHAMIS, Inc.* .......................... 20,000 496,240
Shiva Corporation* ..................... 10,000 430,000
Synopsys, Inc.* ........................ 5,000 312,500
UUNET Technologies, Inc.* .............. 5,300 145,750
Wall Data Incorporated* ................ 20,000 307,500
Wonderware Corporation* ................ 2,000 81,250
Total ................................. 6,574,486
Drugs and Hospital Supply - 3.42%
Circa Pharmaceuticals, Inc.* ........... 15,000 478,125
LUNAR CORPORATION* ..................... 25,000 693,750
Total ................................. 1,171,875
Electronics - 5.35%
Information Storage Devices, Inc.* ..... 5,000 123,750
LSI Logic Corporation* ................. 7,000 273,875
SDL, Inc.* ............................. 36,000 1,071,000
Silicon Valley Group, Inc.* ............ 10,000 363,120
Total ................................. 1,831,745
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE SMALL CAP PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Hospital Management - 4.76%
Hillhaven Corporation (The)* ........... 5,000 $ 141,250
Inphynet Medical Management Inc.* ...... 8,000 150,000
PacifiCare Health Systems, Inc.* ....... 9,000 457,875
Quorum Health Group, Inc.* ............. 11,000 220,682
Sierra Health Services, Inc.* .......... 15,000 367,500
United HealthCare Corporation .......... 7,000 289,625
Total ................................. 1,626,932
Leisure Time - 0.82%
Longhorn Steaks, Inc.* ................. 20,000 280,000
Retailing - 2.78%
Central Tractor Farm & Country, Inc.* .. 15,000 155,625
Hollywood Entertainment Corporation* ... 6,000 270,750
Movie Gallery, Inc.* ................... 15,000 525,000
Total ................................. 951,375
Services, Consumer and Business - 2.89%
CMG Information Services, Inc.* ........ 20,000 382,500
Stewart Enterprises, Inc., Class A ..... 18,000 605,250
Total ................................. 987,750
Telecommunications - 5.83%
MFS Communications Company, Inc.* ...... 22,000 704,000
Mobile Telecommunication Technologies
Corp.* ................................ 20,000 546,240
Ortel Corporation* ..................... 26,400 389,400
TESSCO Technologies Incorporated* ...... 20,000 355,000
Total ................................. 1,994,640
Textiles and Apparel - 1.45%
Department 56, Inc.* ................... 13,000 497,250
Trucking - 0.39%
Knight Transportation, Inc.* ........... 10,000 132,500
TOTAL COMMON STOCKS - 52.71% $18,031,723
(Cost: $14,165,148)
Principal
Amount in
Thousands
SHORT-TERM SECURITIES
Commercial Paper
Automotive - 2.10%
Echlin, Inc.,
6.05%, 7-27-95 ........................ $ 720 716,854
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE SMALL CAP PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Commercial Paper (Continued)
Banks and Savings and Loans - 2.82%
U.S. Bancorp,
Master Note ........................... $ 966 $ 966,000
Chemicals Major - 1.80%
Olin Corporation,
6.07%, 7-5-95 ......................... 615 614,585
Financial - 11.43%
B.A.T. Capital Corp.,
5.92%, 7-5-95 ......................... 1,000 999,342
Merrill Lynch & Co., Inc.,
5.97%, 7-26-95 ........................ 820 816,600
Textron Financial Corp.,
6.05%, 7-26-95 ........................ 1,000 995,799
UBS Finance, Inc.,
5.95%, 7-5-95 ......................... 1,100 1,099,273
Total ................................. 3,911,014
Food and Related - 10.63%
ConAgra, Inc.,
6.05%, 7-17-95 ........................ 1,000 997,311
General Mills, Inc.,
Master Note ........................... 1,445 1,445,000
Sara Lee Corporation,
Master Note ........................... 1,193 1,193,000
Total ................................. 3,635,311
Multi-Industry - 2.92%
Alco Standard Corporation,
6.02%, 7-12-95 ........................ 1,000 998,161
Public Utilities - Electric - 4.37%
Idaho Power Company,
6.0%, 7-12-95 ......................... 500 499,083
Western Resources Inc.,
6.03%, 7-19-95 ........................ 1,000 996,985
Total ................................. 1,496,068
Retailing - 2.92%
Rite Aid Corp.,
6.02%, 7-10-95 ........................ 1,000 998,495
Total Commercial Paper - 38.99% 13,336,488
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE SMALL CAP PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Commercial Paper (backed by irrevocable
bank letter of credit) - 4.35%
International Oil
Petroleo Brasileiro S.A. - Petrobras
(Barclays Bank PLC),
5.98%, 8-17-95 ........................ $1,500 $ 1,488,289
Municipal Obligations - 3.50%
Michigan
Michigan Underground Storage Tank Financial
Assurance Authority, State of Michigan,
Series 1 (Canadian Imperial Bank of Commerce),
6.12%, 7-10-95 ........................ 1,200 1,198,164
TOTAL SHORT-TERM SECURITIES - 46.84% $16,022,941
(Cost: $16,022,941)
TOTAL INVESTMENT SECURITIES - 99.55% $34,054,664
(Cost: $30,188,089)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.45% 152,729
NET ASSETS - 100.00% $34,207,393
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BALANCED PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Airlines - 1.21%
Southwest Airlines Co. ................. 8,000 $ 191,000
Automotive - 0.61%
AB Volvo, ADR, Series B ................ 5,100 96,900
Banks and Savings and Loans - 3.46%
Ahmanson (H. F.) & Company ............. 14,500 319,000
Great Western Financial Corporation .... 11,000 226,875
Total ................................. 545,875
Beverages - 1.79%
PepsiCo, Inc. .......................... 6,200 282,875
Biotechnology and Medical Services - 0.70%
St. Jude Medical, Inc. ................. 2,200 110,136
Building - 3.29%
National Health Investors, Inc. ........ 12,000 327,000
Temple-Inland Inc. ..................... 800 38,100
York International Corporation ......... 3,400 153,000
Total ................................. 518,100
Chemicals Major - 4.08%
Air Products and Chemicals, Inc. ....... 2,900 161,675
du Pont (E.I.) de Nemours and Company .. 1,200 82,500
PPG Industries, Inc. ................... 6,500 279,500
Praxair, Inc. .......................... 4,800 120,000
Total ................................. 643,675
Chemicals Specialty and Miscellaneous
Technology - 3.32%
Browning-Ferris Industries, Inc. ....... 7,000 252,875
Crompton & Knowles Corporation ......... 14,300 201,987
Minnesota Mining and Manufacturing
Company ............................... 1,200 68,700
Total ................................. 523,562
Computers and Office Equipment - 3.89%
Compaq Computer Corporation* ........... 4,600 208,725
Global DirectMail Corp.* ............... 10,800 213,300
International Business Machines
Corporation ........................... 2,000 192,000
Total ................................. 614,025
Domestic Oil - 3.25%
Amoco Corporation ....................... 2,100 139,913
Apache Corporation ..................... 6,000 164,250
Atlantic Richfield Company ............. 1,900 208,525
Total ................................. 512,688
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BALANCED PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Drugs and Hospital Supply - 1.72%
American Home Products Corporation ..... 3,500 $ 270,813
Electrical Equipment - 1.36%
Emerson Electric Co. ................... 3,000 214,500
Electronics - 3.54%
AMP Incorporated ....................... 1,600 67,600
Applied Materials, Inc.* ............... 4,500 389,250
Intel Corporation ...................... 1,600 101,299
Total ................................. 558,149
Engineering and Construction - 1.23%
Foster Wheeler Corporation ............. 5,500 193,875
Financial - 1.56%
Federal National Mortgage Association .. 2,600 245,375
Hospital Management - 2.78%
LTC Properties, Inc. ................... 9,000 118,125
Tenet Healthcare Corporation* .......... 9,600 138,000
United HealthCare Corporation .......... 4,400 182,050
Total ................................. 438,175
Household Products - 1.90%
Colgate-Palmolive Company .............. 4,100 299,812
Insurance - 6.42%
Chubb Corporation (The) ................ 3,100 248,387
PMI Group, Inc. (The) .................. 10,000 433,750
SAFECO Corporation ..................... 3,000 171,936
St. Paul Companies, Inc. (The) ......... 3,200 157,600
Total ................................. 1,011,673
Leisure Time - 2.97%
Walt Disney Company (The) .............. 4,500 250,313
Time Warner Incorporated ............... 5,300 217,962
Total ................................. 468,275
Machinery - 2.58%
Deere & Company ........................ 2,000 171,250
Keystone International, Inc. ........... 12,000 235,500
Total ................................. 406,750
Multi-Industry - 1.57%
ITT Corporation ........................ 2,100 246,750
Oil Services - 1.50%
Schlumberger Limited ................... 3,800 236,075
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BALANCED PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS (Continued)
Paper - 1.62%
Champion International Corporation ..... 2,900 $ 151,163
Union Camp Corporation ................. 1,800 104,175
Total ................................. 255,338
Publishing and Advertising - 2.09%
American Greetings Corporation,
Class A ............................... 4,500 131,904
McGraw-Hill, Inc. ...................... 2,600 197,275
Total ................................. 329,179
Railroads - 0.56%
Conrail Inc. ........................... 1,600 89,000
Retailing - 2.33%
May Department Stores Company (The) .... 1,900 79,087
Mercantile Stores Company, Inc. ........ 1,000 46,500
Penney (J.C.) Company, Inc. ............ 2,000 96,000
Tommy Hilfiger Corporation* ............ 5,200 145,600
Total ................................. 367,187
Services, Consumer and Business - 1.49%
Block (H & R), Inc. .................... 5,700 234,413
Telecommunications - 7.36%
AT&T Corporation ....................... 4,100 217,813
BellSouth Corporation .................. 2,400 152,400
GTE Corporation ........................ 5,300 180,863
General Motors Corporation, Class H .... 6,600 260,700
MCI Communications Corporation ......... 6,000 131,622
Motorola, Inc. ......................... 1,600 107,400
Nokia Corporation, ADR, Series A ....... 800 47,700
Telefonos de Mexico S.A. de C.V., ADR .. 2,100 62,212
Total ................................. 1,160,710
Textiles and Apparel - 0.67%
Liz Claiborne, Inc. .................... 5,000 106,250
TOTAL COMMON STOCKS - 70.85% $11,171,135
(Cost: $10,477,934)
PREFERRED STOCKS
Airlines - 0.22%
Delta Air Lines, Incorporated, Depository Shares,
Convertible, Series C ................. 600 35,100
Computers and Office Equipment - 0.44%
General Motors Corporation, Class E,
Depository Shares, Convertible ........ 1,100 69,300
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BALANCED PORTFOLIO
JUNE 30, 1995
Shares Value
PREFERRED STOCKS (Continued)
Drugs and Hospital Supply - 1.78%
United States Surgical Corporation,
Convertible, Series A ................. 11,000 $ 280,500
TOTAL PREFERRED STOCKS - 2.44% $ 384,900
(Cost: $374,906)
Principal
Amount in
Thousands Value
UNITED STATES GOVERNMENT SECURITIES - 20.69%
United States Treasury:
6.875%, 8-31-99 ....................... $ 250 257,930
7.75%, 11-30-99 ....................... 1,500 1,599,840
7.125%, 2-29-2000 ..................... 500 522,265
6.375%, 8-15-2002 ..................... 100 101,187
7.5%, 2-15-2005 ....................... 500 544,455
6.25%, 8-15-2023 ...................... 250 236,133
Total ................................. $ 3,261,810
(Cost: $3,071,712)
TOTAL SHORT-TERM SECURITIES - 9.52% $ 1,500,342
(Cost: $1,500,342)
TOTAL INVESTMENT SECURITIES - 103.50% $16,318,187
(Cost: $15,424,894)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (3.50%) (551,744)
NET ASSETS - 100.00% $15,766,443
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE ASSET STRATEGY PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES
Commercial Paper - 0.24%
Food and Related
Sara Lee Corporation,
Master Note............................ $ 2 $ 2,000
United States Treasury - 97.41%
United States Treasury Bills:
5.3%, 7-27-95 ......................... 20 19,923
5.35%, 7-27-95 ........................ 105 104,595
5.38%, 7-27-95 ........................ 20 19,922
5.45%, 7-27-95 ........................ 100 99,606
5.54%, 7-27-95 ........................ 115 114,540
5.56%, 7-27-95 ........................ 45 44,819
5.6%, 7-27-95 ......................... 55 54,778
5.67%, 7-27-95 ........................ 40 39,839
5.18%, 8-24-95 ........................ 40 39,689
5.28%, 8-24-95 ........................ 50 49,604
5.3%, 8-24-95 ......................... 70 69,444
5.32%, 8-24-95 ........................ 40 39,681
5.35%, 8-24-95 ........................ 100 99,197
Total ................................. 795,637
TOTAL SHORT-TERM SECURITIES - 97.65% $797,637
(Cost: $797,637)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.35% 19,164
NET ASSETS - 100.00% $816,801
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE MONEY MARKET PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
BANK OBLIGATIONS
Certificates of Deposit
Domestic - 3.23%
First National Bank of Chicago,
6.24%, 6-3-96 ......................... $1,000 $ 1,000,646
Yankee - 3.22%
Societe Generale - New York,
6.19%, 6-3-96 ......................... 1,000 1,000,000
Total Certificates of Deposit - 6.45% 2,000,646
Commercial Paper
Abbey National North America Corporation,
5.95%, 7-21-95 ........................ 735 731,356
Svenska Handelsbanken,
5.98%, 8-7-95 ......................... 800 795,083
U.S. Bancorp,
Master Note ........................... 1,287 1,287,000
Total Commercial Paper - 9.06% 2,813,439
Notes
Abbey National Treasury Services plc,
7.4%, 12-15-95 ........................ 500 500,000
Bank One Milwaukee, N.A.,
7.25%, 2-9-96 ......................... 500 500,000
Comerica Bank,
5.62%, 7-5-95 ......................... 500 499,905
Total Notes - 4.83% 1,499,905
TOTAL BANK OBLIGATIONS - 20.34% $ 6,313,990
(Cost: $6,313,990)
CORPORATE OBLIGATIONS
Commercial Paper
Automotive - 1.92%
Echlin, Inc.,
6.0%, 7-27-95 ......................... 600 597,400
Chemicals Major - 1.68%
Air Products and Chemicals, Inc.,
5.62%, 11-30-95 ....................... 535 522,305
Consumer Electronics and Appliances - 2.57%
TDK (USA) Corp.,
5.93%, 7-17-95 ........................ 800 797,892
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE MONEY MARKET PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE OBLIGATIONS (Continued)
Commercial Paper (Continued)
Electrical Equipment - 3.18%
General Electric Capital Corp.,
5.85%, 9-15-95 ........................ $1,000 $ 987,650
Financial - 9.03%
BHP Finance (U.S.A.) Inc.,
6.0%, 8-1-95 .......................... 850 845,608
Bell Atlantic Financial Services, Inc.,
6.0%, 7-25-95 ......................... 500 498,000
Merrill Lynch & Co., Inc.,
5.96%, 7-17-95 ........................ 665 663,238
Sony Capital Corp.,
5.93%, 8-14-95 ........................ 800 794,202
Total ................................. 2,801,048
Food and Related - 10.21%
General Mills, Inc.,
Master Note ........................... 1,180 1,180,000
Heinz (H.J.) Company,
5.93%, 7-14-95 ........................ 800 798,287
Sara Lee Corporation,
Master Note ........................... 1,190 1,190,000
Total ................................. 3,168,287
Public Utilities - Electric - 7.53%
Baltimore Gas and Electric Company,
5.94%, 8-14-95 ........................ 950 943,103
Idaho Power Company,
5.97%, 7-26-95 ........................ 700 697,098
Tampa Electric Company,
5.97%, 8-11-95 ........................ 700 695,241
Total ................................. 2,335,442
Retailing - 1.01%
Toys "R" Us, Inc.,
5.97%, 7-10-95 ........................ 315 314,530
Telecommunications - 5.14%
AT&T Corporation,
5.95%, 7-10-95 ........................ 900 898,661
GTE Southwest, Inc.,
6.0%, 8-8-95 .......................... 700 695,567
Total ................................. 1,594,228
Tobacco - 2.24%
Philip Morris Companies,
5.9%, 8-22-95 ......................... 700 694,034
Total Commercial Paper - 44.51% 13,812,816
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE MONEY MARKET PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE OBLIGATIONS (Continued)
Commercial Paper (backed by irrevocable
bank letter of credit) - 3.21%
Financial
Omnicom Finance Inc. (Swiss Bank Corp.),
5.95%, 7-28-95 ........................ $1,000 $ 995,538
Notes
Financial - 1.61%
Merrill Lynch & Co., Inc.,
6.185%, 8-21-95 ....................... 500 500,030
Public Utilities - Electric - 1.61%
Georgia Power Co.,
5.125%, 9-1-95 ........................ 500 499,377
Total Notes - 3.22% 999,407
TOTAL CORPORATE OBLIGATIONS - 50.94% $15,807,761
(Cost: $15,807,761)
MUNICIPAL OBLIGATIONS
California - 5.77%
Modesto Irrigation District Finance
Authority (Bank of America),
6.02%, 8-18-95 ........................ 1,000 991,973
City of Anaheim, California, Certificates
of Participation (1993 Arena Financing
Project), Municipal Adjustable Rate
Taxable Securities (Credit Suisse),
6.2675%, 8-2-95 ....................... 800 800,000
Total ................................. 1,791,973
Michigan - 3.22%
Michigan Underground Storage Tank Financial
Assurance Authority, State of Michigan,
Series 1 (Canadian Imperial Bank of Commerce),
6.12%, 7-10-95 ........................ 1,000 998,470
New Hampshire - 1.61%
The Industrial Development Authority
of the State of New Hampshire,
Pollution Control Revenue Bonds
(Public Service Company of New
Hampshire Project-1991 Taxable
Series D and E) (Barclays Bank),
6.125%, 7-5-95 ........................ 500 500,000
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE MONEY MARKET PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL OBLIGATIONS (Continued)
Texas - 1.60%
Metrocrest Hospital Authority, Series 1989A
(The Bank of New York),
6.1216%, 8-1-95 ....................... $ 500 $ 497,364
TOTAL MUNICIPAL OBLIGATIONS - 12.20% $ 3,787,807
(Cost: $3,787,807)
UNITED STATES GOVERNMENT OBLIGATIONS
Federal Home Loan Banks,
6.4%, 7-10-95 ......................... 1,000 1,000,000
Federal Home Loan Mortgage Corporation,
6.45%, 9-7-95 ......................... 1,000 1,000,000
Federal National Mortgage Association,
6.4%, 9-20-95 ......................... 500 500,000
Student Loan Management Association,
5.81%, 7-5-95 ......................... 1,000 1,000,000
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS - 11.28% $ 3,500,000
(Cost: $3,500,000)
TOTAL INVESTMENT SECURITIES - 94.76% $29,409,558
(Cost: $29,409,558)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 5.24% 1,625,570
NET ASSETS - 100.00% $31,035,128
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE LIMITED-TERM BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES
Airlines - 2.32%
Federal Express Corporation,
9.75%, 5-15-96 ........................ $ 50 $ 51,367
Automotive - 2.29%
General Motors Corporation,
7.625%, 2-15-97 ....................... 50 50,923
Banks and Savings and Loans - 9.74%
BankAmerica Corporation,
9.7%, 8-1-2000 ........................ 50 56,140
Boatmen's Bancshares, Inc.,
9.25%, 11-1-2001 ...................... 50 55,790
NCNB Corporation,
10.5%, 3-15-99 ........................ 50 51,410
Norwest Financial, Inc.,
7.75%, 8-15-2001 ...................... 50 52,793
Total ................................. 216,133
Chemicals Major - 6.51%
Dow Chemical Company (The),
4.625%, 10-15-95 ...................... 60 59,736
ICI Wilmington, Inc.,
9.5%, 11-15-2000 ...................... 75 84,612
Total ................................. 144,348
Chemicals Specialty and Miscellaneous
Technology - 8.49%
Polaroid Corporation,
8.0%, 3-15-99 ......................... 85 88,500
Waste Management, Inc.,
6.25%, 12-15-95 ....................... 50 49,998
Xerox Credit Corporation,
6.25%, 1-15-96 ........................ 50 49,976
Total ................................. 188,474
Domestic Oil - 2.42%
BP America Inc.,
9.5%, 1-1-98 .......................... 50 53,667
Drugs and Hospital Supply - 4.69%
American Home Products Corporation,
7.7%, 2-15-2000 ....................... 50 52,334
Baxter International Inc.,
9.25%, 9-15-96 ........................ 50 51,686
Total ................................. 104,020
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE LIMITED-TERM BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Financial - 12.76%
American General Finance Corporation,
8.25%, 1-15-98 ........................ $ 50 $ 52,191
Associates Corporation of North America,
8.8%, 8-1-98 .......................... 50 53,211
Avco Financial Services, Inc.,
5.5%, 4-1-2000 ........................ 50 47,751
Ford Motor Credit Company,
8.0%, 1-15-99 ......................... 75 78,631
Household Finance Corporation,
7.75%, 6-15-97 ........................ 50 51,331
Total ................................. 283,115
Insurance - 4.71%
ITT Hartford,
7.25%, 12-1-96 ........................ 50 50,578
Transamerica Finance Corporation,
8.75%, 10-1-99 ........................ 50 53,961
Total ................................. 104,539
International Oil - 4.89%
Chevron Corporation,
8.11%, 12-1-2004 ...................... 50 53,695
Texaco Capital Inc.,
9.0%, 12-15-99 ........................ 50 54,882
Total ................................. 108,577
Machinery - 2.30%
Ingersoll-Rand Company,
8.25%, 11-1-96 ........................ 50 51,111
Multi-Industry - 2.58%
ITT Corporation,
8.875%, 6-15-2003 ..................... 50 57,241
Public Utilities - Pipelines - 4.69%
Consolidated Natural Gas Company,
8.75%, 6-1-99 ......................... 50 53,934
Tenneco Credit Corporation,
9.0%, 7-15-95 ......................... 50 50,029
Total ................................. 103,963
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE LIMITED-TERM BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Retailing - 4.85%
Penney (J.C.) Company, Inc.,
10.0%, 10-15-97 ....................... $ 50 $ 53,951
Sears, Roebuck and Co.,
9.25%, 4-15-98 ........................ 50 53,591
Total ................................. 107,542
TOTAL CORPORATE DEBT SECURITIES - 73.24% $1,625,020
(Cost: $1,582,094)
UNITED STATES GOVERNMENT SECURITIES
Government National Mortgage Association,
7.0%, 6-15-2010 ....................... 100 100,468
United States Treasury:
5.125%, 11-30-98 ...................... 100 97,437
6.375%, 8-15-2002...................... 100 101,187
6.25%, 2-15-2003 ...................... 100 100,266
TOTAL UNITED STATES GOVERNMENT SECURITIES - 18.00% $ 399,358
(Cost: $386,972)
SHORT-TERM SECURITIES
Banks and Savings and Loans - 3.38%
U.S. Bancorp,
Master Note ........................... 75 75,000
Financial - 4.50%
UBS Finance, Inc.,
5.95%, 7-5-95 ......................... 100 99,934
Food and Related - 4.96%
General Mills, Inc.,
Master Note ........................... 20 20,000
Sara Lee Corporation,
Master Note ........................... 90 90,000
Total ................................. 110,000
TOTAL SHORT-TERM SECURITIES - 12.84% $ 284,934
(Cost: $284,934)
TOTAL INVESTMENT SECURITIES - 104.08% $2,309,312
(Cost: $2,254,000)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (4.08%) (90,600)
NET ASSETS - 100.00% $2,218,712
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES
Aerospace - 1.35%
McDonnell Douglas Corporation,
9.25%, 4-1-2002 ....................... $1,000 $ 1,128,780
Airlines - 1.25%
Federal Express Corporation,
7.89%, 9-23-2008 ...................... 1,000 1,049,750
Automotive - 5.49%
General Motors Corporation,
8.8%, 3-1-2021 ........................ 2,600 2,944,968
Toyota Motor Credit Corporation, Medium Term,
Three Year Basket Inverse Floating Rate,
0.74%, 8-5-96 (B) ..................... 1,750 1,652,088
Total ................................. 4,597,056
Banks and Savings and Loans - 8.90%
BarclaysAmericanCorporation,
9.125%, 12-1-97 ....................... 225 238,367
Bayerische Landesbank Girozentale, NY
Branch, CD, Currency Protected Deutschemark
Swap Rate Inverse Floating Rate,
3.85%, 3-28-97 (C) .................... 1,000 958,750
Chevy Chase Savings Bank, F.S.B.,
9.25%, 12-1-2005 ...................... 500 485,000
Citicorp,
7.75%, 6-15-2006 ...................... 1,000 1,048,390
Kansallis-Osake-Pankki,
10.0%, 5-1-2002 ....................... 1,000 1,159,370
Riggs National Corporation,
8.5%, 2-1-2006 ........................ 1,000 1,020,000
Skandia Enskilda Banken, NY Branch
Certificate of Deposit Dollarized
Australian Dollar Reset,
4.0%, 4-5-99 .......................... 1,000 910,000
SouthTrust Bank of Alabama, N.A.,
7.69%, 5-15-2025 ...................... 500 531,525
Wells Fargo & Company,
8.75%, 5-1-2002 ....................... 1,000 1,100,310
Total ................................. 7,451,712
Beverages - 0.97%
Coca-Cola Enterprises Inc.,
0%, 6-20-2020 ......................... 5,000 812,500
Building - 6.55%
Canadian Pacific Forest Products Ltd.,
9.25%, 6-15-2002 ...................... 1,000 1,045,320
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Building (Continued)
Doman Industries Limited,
8.75%, 3-15-2004 ...................... $ 500 $ 475,000
Noranda Forest Inc.,
7.5%, 7-15-2003 ....................... 1,000 1,017,560
Noranda Inc.,
8.625%, 7-15-2002 ..................... 950 1,034,731
Owens-Corning Fiberglas Corporation,
8.875%, 6-1-2002 ...................... 1,000 1,088,090
Del Webb Corporation,
10.875%, 3-31-2000 .................... 800 820,000
Total ................................. 5,480,701
Chemicals Major - 1.41%
Dow Capital BV,
9.0%, 5-15-2010 ....................... 1,000 1,179,110
Computers and Office Equipment - 1.25%
Unisys Corporation:
9.75%, 9-15-96 ........................ 500 511,250
10.625%, 10-1-99 ...................... 500 537,500
Total ................................. 1,048,750
Domestic Oil - 4.19%
Apache Corporation,
9.25%, 6-1-2002 ....................... 500 555,990
LASMO (USA) INC.,
7.125%, 6-1-2003 ...................... 1,000 1,000,700
Seagull Energy Corporation,
7.875%, 8-1-2003 ...................... 1,500 1,425,000
Union Texas Petroleum Holdings, Inc.,
8.25%, 11-15-99 ....................... 500 520,190
Total ................................. 3,501,880
Drugs and Hospital Supply - 1.25%
American Home Products Corporation,
7.7%, 2-15-2000 ....................... 1,000 1,046,680
Electrical Equipment - 3.11%
General Electric Capital Corporation:
8.3%, 9-20-2009 ....................... 1,500 1,686,600
8.65%, 5-1-2018 ....................... 895 912,077
Total ................................. 2,598,677
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Financial - 9.80%
Banc One Credit Card Master Trust,
7.55%, 12-15-99 ....................... $1,000 $ 1,025,620
Chrysler Financial Corporation,
12.75%, 11-1-99 ....................... 1,000 1,221,970
Countrywide Mortgage Backed Securities,
Inc.,
6.5%, 4-25-2024 ....................... 2,000 1,948,740
DLJ Mortgage Acceptance Corp., 1994-3 A13,
6.5%, 4-25-2024 ....................... 975 923,881
General Motors Acceptance Corporation,
8.875%, 6-1-2010 ...................... 1,000 1,150,910
Greyhound Financial Corporation,
8.0%, 1-15-97 ......................... 1,000 1,023,240
JCP Master Credit Card Trust,
9.625%, 6-15-2000 ..................... 500 550,310
National Credit Card Trust 1989-4,
9.45%, 12-31-97 ....................... 350 359,842
Total ................................. 8,204,513
Food and Related - 2.10%
Nabisco, Inc.,
8.625%, 3-15-2017 ..................... 1,669 1,755,371
Hospital Management - 0.59%
Columbia/HCA Healthcare Corporation,
7.69%, 6-15-2025 ...................... 500 497,120
Household Products - 2.75%
Procter & Gamble Company (The),
8.0%, 9-1-2024 ........................ 2,000 2,298,460
Insurance - 1.28%
Penn Central Corporation (The),
10.625%, 4-15-2000 .................... 1,000 1,073,340
International Oil - 0.52%
YPF Sociedad Anoima,
8.0%, 2-15-2004 ....................... 500 435,000
Leisure Time - 5.66%
Jones Intercable, Inc.,
9.625%, 3-15-2002 ..................... 500 522,500
Marriott International, Inc.,
6.75%, 12-15-2003 ..................... 1,000 980,630
Tele-Communications, Inc.,
9.8%, 2-1-2012 ........................ 750 824,670
Time Warner Incorporated,
7.75%, 6-15-2005 ...................... 1,000 992,750
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Leisure Time (Continued)
Turner Broadcasting System, Inc.,
8.375%, 7-1-2013 ...................... $1,000 $ 914,900
Viacom International, Inc.,
7.75%, 6-1-2005 ....................... 500 504,820
Total ................................. 4,740,270
Machinery - 0.72%
Caterpillar Inc.,
9.375%, 8-15-2011 ..................... 500 601,640
Multi-Industry - 2.61%
ITT Corporation,
8.85%, 7-15-2005 ...................... 1,000 1,166,660
Mark IV Industries, Inc.,
8.75%, 4-1-2003 ....................... 1,000 1,020,000
Total ................................. 2,186,660
Public Utilities - Electric - 1.25%
Kansas Gas & Electric Company,
7.6%, 12-15-2003 ...................... 1,000 1,043,780
Public Utilities - Pipelines - 1.94%
Arkla, Inc.,
8.875%, 7-15-99 ....................... 1,000 1,050,000
Coastal Corporation (The),
10.375%, 10-1-2000 .................... 500 571,245
Total ................................. 1,621,245
Publishing and Advertising - 1.88%
News America Holdings Incorporated:
9.125%, 10-15-99 ...................... 500 542,325
8.25%, 8-10-2018 ...................... 1,000 1,026,900
Total ................................. 1,569,225
Railroad Equipment - 0.01%
Union Tank Car Co.,
9.5%, 12-15-95 ........................ 9 9,126
Steel - 1.26%
USX Corporation,
8.21%, 1-21-2000 ...................... 1,000 1,053,780
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Telecommunications - 4.46%
New England Telephone & Telegraph Company,
7.875%, 11-15-2029 .................... $2,000 $ 2,166,300
Southwestern Bell Telephone Company,
7.0%, 8-26-2002 ....................... 1,000 1,031,460
US WEST, Inc.,
8.4%, 9-15-99 ......................... 500 533,255
Total ................................. 3,731,015
TOTAL CORPORATE DEBT SECURITIES - 72.55% $60,716,141
(Cost: $59,329,164)
OTHER GOVERNMENT SECURITIES
Australia - 0.82%
New South Wales Treasury,
7.0%, 8-15-98 (D) ..................... $A1,000 688,154
Canada - 4.20%
Hydro Quebec,
8.05%, 7-7-2024 ....................... $1,000 1,092,930
Province of Manitoba,
9.125%, 1-15-2018 ..................... 2,000 2,421,780
Total ................................. 3,514,710
Supranational - 1.40%
Inter-American Development Bank,
8.4%, 9-1-2009 ........................ 1,000 1,167,880
TOTAL OTHER GOVERNMENT SECURITIES - 6.42% $ 5,370,744
(Cost: $4,979,210)
UNITED STATES GOVERNMENT SECURITIES
Federal Home Loan Banks,
7.83%, 6-27-2005 ...................... 500 500,500
Federal Home Loan Mortgage Corporation:
6.83%, 7-3-2002 ....................... 500 496,170
7.5%, 11-15-2017 ...................... 1,538 1,574,528
7.5%, 4-15-2019 ....................... 1,236 1,226,678
7.0%, 1-15-2021 ....................... 500 490,155
8.0%, 11-1-2024 ....................... 978 996,634
8.0%, 4-1-2025 ........................ 980 998,007
Federal National Mortgage Association:
7.09%, 4-1-2004 ....................... 500 499,000
7.5%, 9-1-2009 ........................ 974 990,339
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE BOND PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
UNITED STATES GOVERNMENT SECURITIES (Continued)
United States Treasury:
8.875%, 8-15-2017 ..................... $2,000 $ 2,490,000
TOTAL UNITED STATES GOVERNMENT
SECURITIES - 12.26% $10,262,011
(Cost: $9,865,716)
TOTAL SHORT-TERM SECURITIES - 7.77% $ 6,506,372
(Cost: $6,506,372)
TOTAL INVESTMENT SECURITIES - 99.00% $82,855,268
(Cost: $80,680,462)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.00% 833,957
NET ASSETS - 100.00% $83,689,225
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Shares Value
COMMON STOCKS
Hospital Management - 0.81%
LTC Properties, Inc. ................... 50,000 $ 656,250
Leisure Time - 1.51%
Infinity Broadcasting Corporation* ..... 33,750 1,126,406
Sinclair Broadcast Group, Inc.* ........ 500 13,844
Trump Hotels & Casino Resorts, Inc.* ... 6,250 83,594
Total ................................. 1,223,844
Miscellaneous - 0.32%
Bell & Howell Holdings Company* ........ 12,500 253,125
Foodbrands America, Inc.* .............. 176 2,299
Total ................................. 255,424
TOTAL COMMON STOCKS - 2.64% $2,135,518
(Cost: $1,259,218)
PREFERRED STOCK - 0.66%
Banks and Savings and Loans
California Federal Bank, F.S.B. ........ 5,000 $ 535,000
(Cost: $500,000)
Principal
Amount in
Thousands
CORPORATE DEBT SECURITIES
Automotive - 1.76%
Lear Seating Corporation,
8.25%, 2-1-2002 ....................... $1,500 1,425,000
Beverages - 0.46%
Dr Pepper Bottling Holdings, Inc.,
0.0%, 2-15-2003 (E).................... 500 375,000
Biotechnology and Medical Services - 1.99%
Abbey Healthcare Group Incorporated,
9.5%, 11-1-2022 ....................... 500 515,000
Quorum Health Group, Inc.,
11.875%, 12-15-2002 ................... 1,000 1,095,000
Total ................................. 1,610,000
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Building - 7.48%
American Standard Inc.:
9.875%, 6-1-2001 ...................... $1,000 $ 1,030,000
9.25%, 12-1-2016 ...................... 500 500,000
Beazer Homes USA, Inc.,
9.0%, 3-1-2004 ........................ 750 661,875
Eagle Industries, Inc.,
0.0%, 7-15-2003 (E) ................... 1,500 1,110,000
Hillsborough Company,
17.0%, 1-1-96 (F) ..................... 500 373,630
NVR L.P.,
11.0%, 4-15-2003 ...................... 1,000 910,000
Nortek, Inc.,
9.875%, 3-1-2004 ...................... 500 450,000
Triangle Pacific Corp.,
10.5%, 8-1-2003 ....................... 1,000 1,017,500
Total ................................. 6,053,005
Chemicals Specialty and Miscellaneous Technology - 3.44%
Buckeye Cellulose Corporation,
10.25%, 5-15-2001 ..................... 1,250 1,243,750
LaRoche Industries Inc.,
13.0%, 8-15-2004 ...................... 500 515,000
OSi Specialties, Inc.,
9.25%, 10-1-2003 ...................... 500 505,000
Pioneer Americas Acquisition Corp.,
13.375%, 4-1-2005 (A) ................. 500 517,500
Total ................................. 2,781,250
Computers and Office Equipment - 1.18%
Mail-Well Corporation,
10.5%, 2-15-2004 ...................... 500 445,000
United Stationers Supply Co.,
12.75%, 5-1-2005 (A) .................. 500 508,750
Total ................................. 953,750
Consumer Electronics and Appliances - 0.39%
Sealy Corporation,
9.5%, 5-1-2003 ........................ 325 318,500
Domestic Oil - 1.53%
Clark R&M Holdings, Inc.,
0.0%, 2-15-2000 ....................... 2,000 1,240,000
Drugs and Hospital Supply - 1.81%
AmeriSource Distribution Corporation,
11.25%, 7-15-2005 ..................... 368 388,492
General Medical Corporation,
12.125%, 8-15-2005 .................... 1,060 1,075,265
Total ................................. 1,463,757
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Electronics - 1.19%
Essex Group, Inc.,
10.0%, 5-1-2003 ....................... $1,000 $ 965,000
Food and Related - 2.07%
General Nutrition, Incorporated,
11.375%, 3-1-2000 ..................... 393 434,756
Pilgrim's Pride Corporation,
10.875%, 8-1-2003 ..................... 300 282,750
Specialty Foods Corporation,
10.25%, 8-15-2001 ..................... 1,000 960,000
Total ................................. 1,677,506
Hospital Management - 3.72%
LTC Properties, Inc., Convertible,
8.5%, 1-1-2000 ........................ 1,000 985,000
National Medical Enterprises, Inc.,
9.625%, 9-1-2002 ...................... 1,000 1,055,000
Pathmark,
9.625%, 5-1-2003 ...................... 1,000 975,000
Total ................................. 3,015,000
Household Products - 2.18%
Exide Corporation:
10.75%, 12-15-2002 .................... 750 793,125
0.0%, 12-15-2004 (E) .................. 500 357,500
10.0%, 4-15-2005 (A) .................. 500 513,750
MacAndrews & Forbes Group, Incorporated,
13.0%, 3-1-99 ......................... 100 100,500
Total ................................. 1,764,875
Leisure Time - 17.83%
Cablevision Industries Corporation,
10.75%, 1-30-2002 ..................... 500 546,250
California Hotel Finance Corporation,
11.0%, 12-1-2002 ...................... 1,000 1,025,000
COMCAST CORPORATION,
0.0%, 3-5-2000 ........................ 1,000 710,000
Continental Cablevision, Inc.:
10.625%, 6-15-2002 .................... 500 525,000
8.875%, 9-15-2005 ..................... 500 510,000
11.0%, 6-1-2007 ....................... 500 555,000
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Leisure Time (Continued)
FLAGSTAR COMPANIES, INC.:
10.75%, 9-15-2001 ..................... $1,000 $ 940,000
11.25%, 11-1-2004 ..................... 1,000 780,000
GNS Finance Corp.,
9.25%, 3-15-2003 ...................... 1,500 1,605,000
Granite Broadcasting Corporation,
10.375%, 5-15-2005 (A) ................ 500 500,000
Heartland Wireless Communications, Inc., Units,
13.0%, 4-15-2003 (A)(G) ............... 500 530,000
Infinity Broadcasting Corporation,
10.375%, 3-15-2002 .................... 1,000 1,060,000
Plitt Theatres, Inc.,
10.875%, 6-15-2004 .................... 1,000 990,000
Showboat, Inc.,
9.25%, 5-1-2008 ....................... 1,000 917,500
Sinclair Broadcast Group, Inc.,
10.0%, 12-15-2003 ..................... 375 375,000
Trump Hotels & Casino Resorts
Holdings, L.P.,
15.5%, 6-15-2005 ...................... 1,000 977,500
Turner Broadcasting System, Inc.,
8.375%, 7-1-2013 ...................... 1,000 914,900
Viacom International, Inc.,
8.0%, 7-7-2006 ........................ 1,000 973,750
Total ................................. 14,434,900
Metals and Mining - 0.67%
UCAR Global Enterprises Inc.,
12.0%, 1-15-2005 ...................... 500 540,000
Multi-Industry - 3.61%
Federal Industries Ltd.,
10.25%, 6-15-2000 ..................... 500 468,750
Jordan Industries, Inc.,
10.375%, 8-1-2003 ..................... 1,000 922,500
Mark IV Industries, Inc.,
8.75%, 4-1-2003 ....................... 1,500 1,530,000
Total ................................. 2,921,250
Oil Services - 1.27%
Wainoco Oil Corporation,
12.0%, 8-1-2002 ....................... 1,000 1,030,000
Packaging and Containers - 5.27%
Container Corporation of America,
11.25%, 5-1-2004 ...................... 1,500 1,560,000
Gaylord Container Corporation,
0.0%, 5-15-2005 (E) ................... 500 490,000
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Packaging and Containers (Continued)
Owens-Illinois, Inc.,
10.25%, 4-1-99 ........................ $1,000 $ 1,020,000
Silgan Corporation,
0.0%, 12-15-2002 (E)................... 500 457,500
Sweetheart Cup Company, Inc.,
10.5%, 9-1-2003 ....................... 750 742,500
Total ................................. 4,270,000
Paper - 3.17%
Fort Howard Corporation,
11.0%, 1-2-2002 ....................... 468 482,358
Repap New Brunswick Inc.,
10.625%, 4-15-2005 .................... 500 505,000
Stone Container Corporation,
10.75%, 10-1-2002 ..................... 750 785,625
Williamhouse - Regency of Delaware, Inc.,
11.5%, 6-15-2005 ..................... 800 796,000
Total ................................. 2,568,983
Public Utilities - Gas - 0.64%
AmeriGas Partners, L.P.,
10.125%, 4-15-2007 (A) ................ 500 520,000
Publishing and Advertising - 3.71%
American Media Operations, Inc.,
11.625%, 11-15-2004 ................... 1,000 1,070,000
Big Flower Press, Inc.,
10.75%, 8-1-2003 ...................... 1,000 985,000
Outdoor Systems, Inc.,
10.75%, 8-15-2003 ..................... 1,000 950,000
Total ................................. 3,005,000
Railroad Equipment - 0.63%
Westinghouse Air Brake Company,
9.375%, 6-15-2005 ..................... 500 506,250
Retailing - 8.51%
Barnes & Noble, Inc.,
11.875%, 1-15-2003 ................... 500 546,250
Big V Supermarkets, Inc.,
11.0%, 2-15-2004 ...................... 500 420,000
Kroger Co. (The),
9.75%, 2-15-2004 ...................... 1,000 1,070,000
Musicland Stores Corporation,
9.0%, 6-15-2003 ....................... 1,500 1,350,000
Penn Traffic Company,
10.375%, 10-1-2004 .................... 1,500 1,541,250
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Retailing (Continued)
Ralphs Grocery Company,
10.45%, 6-15-2004 ..................... $1,000 $ 1,000,000
WestPoint Stevens Inc.,
9.375%, 12-15-2005 .................... 1,000 962,500
Total ................................. 6,890,000
Services, Consumer and Business - 0.99%
Bell & Howell Company,
10.75%, 10-1-2002 ..................... 750 798,750
Steel - 1.01%
AK Steel Corporation,
10.75%, 4-1-2004 ...................... 250 262,500
Inland Steel Industries, Inc.,
12.75%, 12-15-2002 .................... 500 557,500
Total ................................. 820,000
Telecommunications - 3.55%
MFS Communications Company, Inc.,
0.0%, 1-15-2004 (E) ................... 1,000 695,000
PanAmSat, L.P.:
9.75%, 8-1-2000 ....................... 1,000 1,020,000
0.0%, 8-1-2003 (E) .................... 1,000 715,000
USA Mobile Communications, Inc.,
9.5%, 2-1-2004 ........................ 500 440,000
Total ................................. 2,870,000
Textiles and Apparel - 1.13%
CONSOLTEX GROUP INC.,
11.0%, 10-1-2003 ...................... 1,000 915,000
TOTAL CORPORATE DEBT SECURITIES - 81.19% $65,732,776
(Cost: $65,517,852)
SHORT-TERM SECURITIES
Banks and Savings and Loans - 4.24%
U.S. Bancorp,
Master Note ........................... 3,432 3,432,000
Food and Related - 3.75%
General Mills, Inc.,
Master Note ........................... 1,095 1,095,000
Sara Lee Corporation,
Master Note ........................... 1,940 1,940,000
Total ................................. 3,035,000
See Notes to Schedules of Investments on page 46.
<PAGE>
THE INVESTMENTS OF THE HIGH INCOME PORTFOLIO
JUNE 30, 1995
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Railroads - 4.21%
Burlington Northern Railroad Co.,
6.1%, 8-4-95 .......................... $3,430 $ 3,410,239
Retailing - 1.60%
Rite Aid Corp.,
6.02%, 7-10-95 ........................ 1,300 1,298,044
TOTAL SHORT-TERM SECURITIES - 13.80% $11,175,283
(Cost: $11,175,283)
TOTAL INVESTMENT SECURITIES - 98.29% $79,578,577
(Cost: $78,452,353)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.71% 1,385,012
NET ASSETS - 100.00% $80,963,589
See Notes to Schedules of Investments on page 46.
<PAGE>
Notes to Schedules of Investments
*No income dividends were paid during the preceding 12 months.
(A) As of June 30, 1995, the following restricted securities were owned in the
International Portfolio:
Acquisition Acquisition Market
Security Date Shares Cost Value
---------------- --------------------------------------------
Samsung Electronics Co.,
Ltd., GDR 05/17/95 15,000$ 777,750$ 796,950
05/25/95 4,000 206,500 212,520
Tarkett Aktiengesellschaft,
ADS 06/27/95 12,000 275,760 312,000
--------------------
$1,260,010$1,321,470
====================
The total market value of restricted securities represents approximately
3.27% of the total net assets in the International Portfolio at June 30,
1995.
As of June 30, 1995, the following restricted securities were owned in the
High Income Portfolio:
Principal
Acquisition Amount Acquisition Market
Security Date in 000's Cost Value
---------------- --------------------------------------------
AmeriGas Partners, L.P.,
10.125%, 4-15-2007 04/12/95 $500$ 500,000$ 520,000
Exide Corporation,
10.0%, 4-15-2005 04/21/95 500 500,000 513,750
Granite Broadcasting
Corporation,
10.375%, 5-15-2005 05/12/95 500 500,000 500,000
Heartland Wireless
Communications, Inc., Units,
13.0%, 4-15-2003 04/20/95 500 500,000 530,000
Pioneer Americas
Acquisition Corp.,
13.375%, 4-1-2005 04/13/95 500 500,000 517,500
United Stationers
Supply Co.,
12.75%, 5-1-2005 04/26/95 500 500,000 508,750
--------------------
$3,000,000$3,090,000
====================
The total market value of restricted securities represents approximately
3.82% of the total net assets in the High Income Portfolio at June 30,
1995.
(B) Coupon resets semiannually based on the arithmetic mean of two year swap
rates in four nations: Italy, France, Spain, and the United Kingdom,
determined by the following formula (minimum coupon of 0%):
19.65% - 2X(Average two year swap rate in the aforementioned
nations).
<PAGE>
(C) Coupon resets semiannually based on 14.13% - 1.5 (5 year Deutschemark swap
rate). Coupon guaranteed at 3%.
(D) Principal amounts are denominated in the indicated foreign currency where
applicable ($A - Australian dollar).
(E) The security does not bear interest for an initial period of time and
subsequently becomes interest bearing.
(F) Non-income producing as the issuer has either missed its most recent
interest payment or declared bankruptcy.
(G) Each unit consists of one thousand face value corporate bond and six
warrants expiring 4-15-2003.
See Note 1 to financial statements for security valuation and other significant
accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and
depreciation of investments owned for Federal income tax purposes.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(Unaudited) Growth IncomeInternational
Portfolio Portfolio Portfolio
Assets ----------- ---------- -----------
Investment securities--at
value (Notes 1 and 3) $339,173,358$282,522,827 $39,800,823
Cash .............. 3,070 2,523 3,397
Receivables:
Investment securities
sold ............ 11,058,592 1,776,922 213,713
Dividends and interest 564,740 323,354 203,821
Fund shares sold .. 220,318 186,427 217,627
Prepaid insurance
premium ........... 8,320 6,105 1,694
------------------------ -----------
Total assets .... 351,028,398 284,818,158 40,441,075
Liabilities ------------------------ -----------
Payable for investment
securities purchased 11,228,407 --- ---
Payable for Fund shares
redeemed .......... 150,352 94,861 11,623
Accrued accounting
services fee ...... 4,167 4,167 1,667
Dividends payable .. --- --- ---
Other .............. 11,614 8,337 31,522
------------------------ -----------
Total liabilities 11,394,540 107,365 44,812
------------------------ -----------
Total net assets $339,633,858$284,710,793 $40,396,263
Net Assets ======================== ===========
$0.01 par value capital stock
Capital stock ..... $ 489,848$ 345,709 $ 75,375
Additional paid-in
capital ......... 298,721,086 219,022,178 38,324,552
Accumulated undistributed gain (loss):
Accumulated undistributed
net investment income 2,282,675 1,474,449 452,705
Accumulated undistributed
net realized gain (loss)
on investment
transactions .... 17,732,962 1,288,604 7,144
Net unrealized appreciation
of investments at end of
period .......... 20,407,287 62,579,853 1,536,487
------------------------ -----------
Net assets applicable to
outstanding units
of capital ..... $339,633,858$284,710,793 $40,396,263
======================== ===========
Net asset value, redemption
and offering price per share $6.9334 $8.2356 $5.3593
======= ======= =======
Capital shares outstanding 48,984,830 34,570,896 7,537,534
Capital shares authorized 100,000,000 100,000,000 100,000,000
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(Unaudited) Small Cap BalancedAsset Strategy
Portfolio Portfolio Portfolio
Assets ---------- ---------- -----------
Investment securities--at
value (Notes 1 and 3) $34,054,664 $16,318,187 $797,637
Cash .............. 7,178 2,701 1,317
Receivables:
Investment securities
sold ............ --- --- ---
Dividends and interest 18,635 81,680 192
Fund shares sold .. 134,192 92,044 32,949
Prepaid insurance
premium ........... 1,606 990 176
----------- ----------- --------
Total assets .... 34,216,275 16,495,602 832,271
Liabilities ----------- ----------- --------
Payable for investment
securities purchased --- 724,540 ---
Payable for Fund shares
redeemed .......... 5,291 2,871 15,404
Accrued accounting
services fee ...... 1,667 833 ---
Dividends payable .. --- --- ---
Other .............. 1,924 915 66
----------- ----------- --------
Total liabilities 8,882 729,159 15,470
----------- ----------- --------
Total net assets $34,207,393 $15,766,443 $816,801
Net Assets =========== =========== ========
$0.01 par value capital stock
Capital stock ..... $ 49,340 $ 28,577 $ 1,622
Additional paid-in
capital ......... 29,052,186 14,620,331 813,035
Accumulated undistributed gain (loss):
Accumulated undistributed
net investment income 296,064 209,195 2,144
Accumulated undistributed
net realized gain (loss)
on investment transactions
and foreign currency
transactions .... 943,228 15,047 ---
Net unrealized appreciation
of investments at end of
period .......... 3,866,575 893,293 ---
----------- ----------- --------
Net assets applicable to
outstanding units
of capital ..... $34,207,393 $15,766,443 $816,801
=========== =========== ========
Net asset value, redemption
and offering price per share $6.9330 $5.5171 $5.0360
======= ======= =======
Capital shares outstanding 4,934,027 2,857,735 162,194
Capital shares authorized 100,000,000 50,000,000 100,000,000
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(Unaudited) Money MarketLimited-Term Bond
PortfolioBond Portfolio Portfolio
Assets ------------------------- -----------
Investment securities--at
value (Notes 1 and 3) $29,409,558 $2,309,312 $82,855,268
Cash .............. 16,639 3,317 5,066
Receivables:
Investment securities
sold ............ --- --- 552,099
Dividends and interest 108,359 40,967 1,371,078
Fund shares sold .. 2,046,883 500 85,447
Prepaid insurance
premium ........... 2,209 539 3,426
----------- ---------- -----------
Total assets .... 31,583,648 2,354,635 84,872,384
Liabilities ----------- ---------- -----------
Payable for investment
securities purchased --- 99,875 992,169
Payable for Fund shares
redeemed .......... 541,661 35,459 184,087
Accrued accounting
services fee ...... 1,667 --- 2,500
Dividends payable .. 4,378 --- ---
Other .............. 814 589 4,403
----------- ---------- -----------
Total liabilities 548,520 135,923 1,183,159
----------- ---------- -----------
Total net assets $31,035,128 $2,218,712 $83,689,225
Net Assets =========== ========== ===========
$0.01 par value capital stock
Capital stock ..... $ 310,351 $ 4,190 $ 157,125
Additional paid-in
capital ......... 30,724,777 2,098,456 82,402,140
Accumulated undistributed gain (loss):
Accumulated undistributed
net investment income --- 60,754 2,712,910
Accumulated undistributed
net realized gain (loss)
on investment transactions
and foreign currency
transactions .... --- --- (3,757,250)
Net unrealized appreciation
of investments at end of
period .......... --- 55,312 2,174,300
----------- ---------- -----------
Net assets applicable to
outstanding units
of capital ..... $31,035,128 $2,218,712 $83,689,225
=========== ========== ===========
Net asset value, redemption
and offering price per share $1.0000 $5.2947 $5.3263
======= ======= =======
Capital shares outstanding 31,035,128 419,040 15,712,505
Capital shares authorized 200,000,000 50,000,000 100,000,000
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(Unaudited) High Income
Portfolio
Assets -------------
Investment securities--at
value (Notes 1 and 3) $79,578,577
Cash .............. 2,599
Receivables:
Investment securities
sold ............ 490,000
Dividends and interest 1,459,478
Fund shares sold .. 61,962
Prepaid insurance
premium ........... 3,606
-----------
Total assets .... 81,596,222
Liabilities -----------
Payable for investment
securities purchased 490,000
Payable for Fund shares
redeemed .......... 132,670
Accrued accounting
services fee ...... 2,500
Dividends payable .. ---
Other .............. 7,463
-----------
Total liabilities 632,633
-----------
Total net assets $80,963,589
Net Assets ===========
$0.01 par value capital stock
Capital stock ..... $ 178,688
Additional paid-in
capital ......... 79,067,098
Accumulated undistributed gain (loss):
Accumulated undistributed
net investment income 3,514,260
Accumulated undistributed
net realized gain (loss)
on investment transactions
and foreign currency
transactions .... (2,922,681)
Net unrealized appreciation
of investments at end of
period .......... 1,126,224
-----------
Net assets applicable to
outstanding units
of capital ..... $80,963,589
===========
Net asset value, redemption
and offering price per share $4.5310
=======
Capital shares outstanding 17,868,806
Capital shares authorized 100,000,000
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF OPERATIONS
For the Period Ended JUNE 30, 1995
(Unaudited)
Growth IncomeInternational
Portfolio Portfolio Portfolio
---------- ---------- ----------
Investment Income
Income:
Interest .......... $ 1,202,238 $ 413,932 $ 373,372
Dividends ......... 2,230,866 2,008,061 355,378
----------- ----------- ----------
Total income .... 3,433,104 2,421,993 728,750
----------- ----------- ----------
Expenses (Note 2):
Investment management
fee ............. 1,068,022 869,634 131,775
Accounting services
fee ............. 25,000 25,000 10,000
Registration fees . 17,376 23,065 9,177
Custodian fees .... 12,633 6,968 16,624
Audit fees ........ 15,088 12,281 2,556
Legal fees ........ 2,690 2,183 300
Other ............. 10,232 8,860 206
----------- ----------- ----------
Total expenses .. 1,151,041 947,991 170,638
----------- ----------- ----------
Net investment income 2,282,063 1,474,002 558,112
----------- ----------- ----------
Realized and Unrealized Gain (Loss)
on Investments
Realized net gain (loss)
on securities ..... 17,732,962 1,751,455 28,153
Realized net gain (loss)
on foreign currency
transactions ...... 612 447 (105,407)
----------- ----------- ----------
Realized net gain (loss)
on investments .. 17,733,574 1,751,902 (77,254)
Unrealized appreciation
in value of investments
during the period . 30,024,889 46,205,807 2,200,583
----------- ----------- ----------
Net gain on
investments .... 47,758,463 47,957,709 2,123,329
----------- ----------- ----------
Net increase in net
assets resulting
from operations $50,040,526 $49,431,711 $2,681,441
=========== =========== ==========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF OPERATIONS
For the Period Ended JUNE 30, 1995
(Unaudited)
Small Cap BalancedAsset Strategy
Portfolio Portfolio Portfolio
---------- ---------- ----------
Investment Income
Income:
Interest .......... $ 421,796 $ 149,056 $2,587
Dividends ......... 630 106,653 ---
---------- ---------- ------
Total income .... 422,426 255,709 2,587
---------- ---------- ------
Expenses (Note 2):
Investment management
fee ............. 107,924 35,969 375
Accounting services
fee ............. 7,500 4,167 ---
Registration fees . 5,048 3,047 ---
Custodian fees .... 2,803 571 ---
Audit fees ........ 2,083 1,658 ---
Legal fees ........ 238 121 ---
Other ............. 766 981 68
---------- ---------- ------
Total expenses .. 126,362 46,514 443
---------- ---------- ------
Net investment income 296,064 209,195 2,144
---------- ---------- ------
Realized and Unrealized Gain (Loss)
on Investments
Realized net gain (loss)
on securities ..... 943,228 18,265 ---
Realized net gain (loss)
on foreign currency
transactions ...... --- --- ---
---------- ---------- ------
Realized net gain (loss)
on investments .. 943,228 18,265 ---
Unrealized appreciation
in value of investments
during the period . 2,558,296 1,128,727 ---
---------- ---------- ------
Net gain on
investments..... 3,501,524 1,146,992 ---
---------- ---------- ------
Net increase in net
assets resulting
from operations $3,797,588 $1,356,187 $2,144
========== ========== ======
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF OPERATIONS
For the Period Ended JUNE 30, 1995
(Unaudited)
Money MarketLimited-Term Bond
PortfolioBond Portfolio Portfolio
--------------- ---------- ----------
Investment Income
Income:
Interest .......... $807,623 $ 68,664 $2,955,579
Dividends ......... --- --- ---
-------- -------- ----------
Total income .... 807,623 68,664 2,955,579
-------- -------- ----------
Expenses (Note 2):
Investment management
fee ............. 67,037 5,325 211,321
Accounting services
fee ............. 10,000 --- 15,000
Registrations fees 1,370 567 13
Custodian fees .... 1,654 16 6,085
Audit fees ........ 2,503 1,283 4,898
Legal fees ........ 226 17 697
Other ............. 2,449 702 4,053
-------- -------- ----------
Total expenses .. 85,239 7,910 242,067
-------- -------- ----------
Net investment income 722,384 60,754 2,713,512
-------- -------- ----------
Realized and Unrealized Gain (Loss)
on Investments
Realized net gain (loss)
on securities ..... --- --- (277,554)
Realized net gain (loss)
on foreign currency
transactions ...... --- --- (602)
-------- -------- ----------
Realized net gain (loss)
on investments .. --- --- (278,156)
Unrealized appreciation
in value of investments
during the period . --- 102,999 6,770,634
-------- -------- ----------
Net gain on
investments .... --- 102,999 6,492,478
-------- -------- ----------
Net increase in net
assets resulting
from operations $722,384 $163,753 $9,205,990
======== ======== ==========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF OPERATIONS
For the Period Ended JUNE 30, 1995
(Unaudited)
High Income
Portfolio
---------------
Investment Income
Income:
Interest .......... $3,738,490
Dividends ......... 55,562
----------
Total income .... 3,794,052
----------
Expenses (Note 2):
Investment management
fee ............. 252,307
Accounting services
fee ............. 15,000
Registration fees . 1,165
Custodian fees .... 1,790
Audit fees ........ 4,805
Legal fees ........ 684
Other ............. 4,041
----------
Total expenses .. 279,792
----------
Net investment income 3,514,260
----------
Realized and Unrealized Gain (Loss)
on Investments
Realized net gain (loss)
on securities ..... (1,177,577)
Realized net gain (loss)
on foreign currency
transactions ...... ---
----------
Realized net gain (loss)
on investments .. (1,177,577)
Unrealized appreciation
in value of investments
during the period . 5,119,250
----------
Net gain on
investments .... 3,941,673
----------
Net increase in net
assets resulting
from operations $7,455,933
==========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended JUNE 30, 1995
(Unaudited)
Growth IncomeInternational
Portfolio Portfolio Portfolio
----------- ----------- -----------
Increase in Net Assets
Operations:
Net investment
income .......... $ 2,282,063$ 1,474,002 $ 558,112
Realized net gain (loss)
on investments .. 17,733,574 1,751,902 (77,254)
Unrealized
appreciation .... 30,024,889 46,205,807 2,200,583
------------------------------------
Net increase in net
assets resulting
from operations. 50,040,526 49,431,711 2,681,441
------------------------ -----------
Dividends to shareholders from
net investment income* --- --- ---
------------------------ -----------
Capital share
transactions** .... 12,856,697 16,505,480 11,695,188
------------------------ -----------
Total increase . 62,897,223 65,937,191 14,376,629
Net Assets
Beginning of period 276,736,635 218,773,602 26,019,634
------------------------ -----------
End of period ...... $339,633,858$284,710,793 $40,396,263
======================== ===========
Undistributed net
investment income $2,282,675 $1,474,449 $452,705
========== ========== ========
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 4,145,291 3,730,935 2,818,241
Shares issued from reinvest-
ment of dividends .. --- --- ---
Shares redeemed ...... (2,076,329) (1,480,664) (492,299)
--------- --------- ---------
Increase in outstanding
capital shares ...... 2,068,962 2,250,271 2,325,942
========= ========= =========
Value issued from sale
of shares .......... $25,923,536 $27,319,404 $14,153,273
Value issued from reinvest-
ment of dividends .. --- --- ---
Value redeemed ....... (13,066,839)(10,813,924) (2,458,085)
----------- ----------- -----------
Increase in
outstanding capital $12,856,697 $16,505,480 $11,695,188
=========== =========== ===========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended JUNE 30, 1995
(Unaudited)
Small Cap BalancedAsset Strategy
Portfolio Portfolio Portfolio
----------- ----------- -----------
Increase in Net Assets
Operations:
Net investment income $ 296,064 $ 209,195 $ 2,144
Realized net gain (loss)
on investments .. 943,228 18,265 ---
Unrealized
appreciation .... 2,558,296 1,128,727 ---
----------- ----------- --------
Net increase in net
assets resulting
from operations. 3,797,588 1,356,187 2,144
----------- ----------- --------
Dividends to shareholders from
net investment income* --- --- ---
Capital share
transactions** .... 14,329,643 5,739,188 814,657
----------- ----------- --------
Total increase . 18,127,231 7,095,375 816,801
Net Assets
Beginning of period 16,080,162 8,671,068 ---
----------- ----------- --------
End of period ...... $34,207,393 $15,766,443 $816,801
=========== =========== ========
Undistributed net
investment income $296,064 $209,195 $2,144
======== ======== ======
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 2,532,540 1,194,969 162,692
Shares issued from reinvest-
ment of dividends .. --- --- ---
Shares redeemed ...... (282,193) (93,954) (498)
--------- --------- -------
Increase in outstanding
capital shares..... 2,250,347 1,101,015 162,194
========= ========= =======
Value issued from sale
of shares .......... $16,152,071 $6,221,023 $817,163
Value issued from reinvest-
ment of dividends .. --- --- ---
Value redeemed ....... (1,822,428) (481,835) (2,506)
----------- ---------- --------
Increase in
outstanding capital $14,329,643 $5,739,188 $814,657
=========== ========== ========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended JUNE 30, 1995
(Unaudited)
Money MarketLimited-Term Bond
PortfolioBond Portfolio Portfolio
-------------- ----------- -----------
Increase in Net Assets
Operations:
Net investment income $ 722,384 $ 60,754 $ 2,713,512
Realized net gain (loss)
on investments .. --- --- (278,156)
Unrealized
appreciation .... --- 102,999 6,770,634
----------- ---------- -----------
Net increase in net
assets resulting
from operations. 722,384 163,753 9,205,990
----------- ---------- -----------
Dividends to shareholders
from net investment
income*............ (722,384) --- ---
----------- ---------- -----------
Capital share
transactions**..... 222,865 409,813 466,385
----------- ---------- -----------
Total increase .. 222,865 573,566 9,672,375
Net Assets
Beginning of period 30,812,263 1,645,146 74,016,850
----------- ---------- -----------
End of period ...... $31,035,128 $2,218,712 $83,689,225
=========== ========== ===========
Undistributed net
investment income $--- $60,754 $2,712,910
==== ======= ==========
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 76,522,981 103,619 1,067,979
Shares issued from reinvest-
ment of dividends .. 722,384 --- ---
Shares redeemed ...... (77,022,500) (23,007) (973,231)
------- ------ ------
Increase in outstanding
capital shares ..... 222,865 80,612 94,748
======= ====== ======
Value issued from sale
of shares .......... $76,522,981 $526,097 $5,337,558
Value issued from reinvest-
ment of dividends .. 722,384 --- ---
Value redeemed ....... (77,022,500) (116,284) (4,871,173)
-------- -------- --------
Increase in
outstanding capital $222,865 $409,813 $466,385
======== ======== ========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended JUNE 30, 1995
(Unaudited)
High Income
Portfolio
-----------
Increase in Net Assets
Operations:
Net investment income $ 3,514,260
Realized net gain (loss)
on investments .. (1,177,577)
Unrealized
appreciation .... 5,119,250
-----------
Net increase in net
assets resulting
from operations. 7,455,933
-----------
Dividends to shareholders
from net investment
income*............ ---
-----------
Capital share
transactions**..... 863,981
-----------
Total increase .. 8,319,914
Net Assets
Beginning of period 72,643,675
-----------
End of period ...... $80,963,589
===========
Undistributed net
investment income $3,514,260
==========
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 1,367,697
Shares issued from reinvest-
ment of dividends .. ---
Shares redeemed ...... (1,165,892)
-------
Increase in outstanding
capital shares ..... 201,805
=======
Value issued from sale
of shares .......... $5,904,797
Value issued from reinvest-
ment of dividends .. ---
Value redeemed ....... (5,040,816)
--------
Increase in
outstanding capital $863,981
========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended DECEMBER 31, 1994
(Unaudited)
Growth IncomeInternational
Portfolio Portfolio Portfolio
----------- ----------- -----------
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 5,286,234$ 2,248,257 $ 106,617
Realized net gain (loss)
on investments .. 14,371,377 684,147 (21,009)
Unrealized appreciation
(depreciation) .. (13,761,465) (6,030,073) (664,096)
------------------------ -----------
Net increase (decrease)
in net assets resulting
from operations. 5,896,146 (3,097,669) (578,488)
------------------------ -----------
Dividends to shareholders from:*
Net investment income (5,286,234) (2,248,257) (106,617)
Realized gains on securities
transactions .... (14,154,374) --- ---
------------------------ -----------
(19,440,608) (2,248,257) (106,617)
------------------------ -----------
Capital share
transactions** .... 69,690,925 69,027,272 26,704,739
------------------------ -----------
Total increase
(decrease)...... 56,146,463 63,681,346 26,019,634
Net Assets
Beginning of period 220,590,172 155,092,256 ---
------------------------ -----------
End of period ...... $276,736,635$218,773,602 $26,019,634
======================== ===========
Undistributed net
investment income $--- $--- $---
==== ==== ====
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 11,752,596 11,914,285 5,355,035
Shares issued from reinvest-
ment of dividends and/or
distributions ...... 3,295,800 332,145 21,355
Shares redeemed ...... (3,733,563) (2,344,370) (164,798)
---------- ---------- ---------
Increase in outstanding
capital shares ...... 11,314,833 9,902,060 5,211,592
========== ========== =========
Value issued from sale
of shares .......... $73,683,884 $83,060,254 $27,436,654
Value issued from reinvest-
ment of dividends and/or
distributions ...... 19,440,608 2,248,256 106,617
Value redeemed ....... (23,433,567)(16,281,238) (838,532)
----------- ----------- -----------
Increase in
outstanding capital $69,690,925 $69,027,272 $26,704,739
=========== =========== ===========
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended DECEMBER 31, 1994
(Unaudited)
Small Cap BalancedMoney Market
Portfolio Portfolio Portfolio
----------- ----------- -----------
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 99,347 $ 79,610 $ 851,434
Realized net gain (loss)
on investments .. 44,381 (3,218) ---
Unrealized appreciation
(depreciation) .. 1,308,279 (235,434) ---
----------- ---------- -----------
Net increase (decrease)
in net assets resulting
from operations. 1,452,007 (159,042) 851,434
----------- ---------- -----------
Dividends to shareholders from:*
Net investment income (99,347) (79,610) (851,434)
Realized gains on securities
transactions .... (44,381) --- ---
----------- ---------- -----------
(143,728) (79,610) (851,434)
----------- ---------- -----------
Capital share
transactions** .... 14,771,883 8,909,720 4,812,395
----------- ---------- -----------
Total increase
(decrease) .... 16,080,162 8,671,068 4,812,395
Net Assets
Beginning of period --- --- 25,999,868
----------- ---------- -----------
End of period ...... $16,080,162 $8,671,068 $30,812,263
=========== ========== ===========
Undistributed net
investment income $--- $--- $---
==== ==== ====
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 2,722,519 1,795,318 183,043,231
Shares issued from reinvest-
ment of dividends and/or
distributions ...... 23,987 16,128 851,433
Shares redeemed ...... (62,826) (54,726)(179,082,269)
--------- --------- -----------
Increase in outstanding
capital shares..... 2,683,680 1,756,720 4,812,395
========= ========= ==========
Value issued from sale
of shares .......... $14,980,266 $9,104,454$183,043,231
Value issued from reinvest-
ment of dividends and/or
distributions ...... 143,729 79,610 851,433
Value redeemed ....... (352,112) (274,344)(179,082,269)
----------- ----------------------
Increase in
outstanding capital $14,771,883 $8,909,720$ 4,812,395
=========== =====================+
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended DECEMBER 31, 1994
(Unaudited)
Limited-Term Bond High Income
Bond Portfolio Portfolio Portfolio
-------------- ----------- -----------
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 49,532 $ 5,286,973 $ 6,761,683
Realized net gain (loss)
on investments .. 455 (3,479,696) (1,428,391)
Unrealized appreciation
(depreciation) .. (47,687) (6,740,515) (7,299,167)
---------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations. 2,300 (4,933,238) (1,965,875)
---------- ----------- -----------
Dividends to shareholders
from:*
Net investment income (49,532) (5,286,973) (6,761,683)
Realized gains on securities
transactions .... (455) --- ---
---------- ----------- -----------
(49,987) (5,286,973) (6,761,683)
---------- ----------- -----------
Capital share
transactions**..... 1,692,833 2,510,419 10,105,884
---------- ----------- -----------
Total increase
(decrease) ..... 1,645,146 (7,709,792) 1,378,326
Net Assets
Beginning of period --- 81,726,642 71,265,349
---------- ----------- -----------
End of period ...... $1,645,146 $74,016,850 $72,643,675
========== =========== ===========
Undistributed net
investment income $--- $--- $---
==== ==== ====
*See "Financial Highlights" on pages 56 - 65.
**Shares issued from sale
of shares .......... 331,301 3,002,124 3,768,168
Shares issued from reinvest-
ment of dividends and/or
distributions ...... 10,283 1,081,257 1,593,245
Shares redeemed ...... (3,156) (3,587,525) (3,062,321)
------- --------- ---------
Increase in outstanding
capital shares ..... 338,428 495,856 2,299,092
======= ========= =========
Value issued from sale
of shares .......... $1,658,566 $15,437,912 $16,942,683
Value issued from reinvest-
ment of dividends and/or
distributions ...... 49,987 5,286,973 6,761,683
Value redeemed ....... (15,720)(18,214,466)(13,598,482)
---------- ----------- -----------
Increase in
outstanding capital $1,692,833 $ 2,510,419 $10,105,884
========== =========== ===========
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE GROWTH PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period:
(Unaudited)
For the
six months For the fiscal year ended December 31,
ended -----------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
Net asset value,
beginning of
period ........... $5.8986 $6.1962 $6.1505 $5.5973 $4.9479 $5.4025
------- ------- ------- ------- ------- -------
Income from investment
operations:
Net investment
income .......... 0.0466 0.1211 0.0537 0.1013 0.1229 0.1661
Net realized and
unrealized gain
(loss) on
investments ..... 0.9882 0.0268 0.8087 1.0653 1.6636 (0.4546)
------- ------- ------- ------- ------- -------
Total from investment
operations ....... 1.0348 0.1479 0.8624 1.1666 1.7865 (0.2885)
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment
income .......... (0.0000) (0.1211)(0.0537) (0.1013)(0.1229) (0.1661)
Distribution from
capital gains ... (0.0000) (0.3244)(0.7569) (0.5121)(1.0142) (0.0000)
Distribution in
excess of capital
gains ........... (0.0000) (0.0000)(0.0061) (0.0000)(0.0000) (0.0000)
------- ------- ------- ------- ------- -------
Total distributions. (0.0000) (0.4455)(0.8167) (0.6134)(1.1371) (0.1661)
------- ------- ------- ------- ------- -------
Net asset value,
end of period .... $6.9334 $5.8986 $6.1962 $6.1505 $5.5973 $4.9479
======= ======= ======= ======= ======= =======
Total return ....... 17.54% 2.39% 14.02% 20.84% 36.10% -5.34%
Net assets, end of
period (000
omitted) .........$339,634$276,737$220,590 $122,363 $69,044 $37,440
Ratio of expenses
to average net
assets ............ 0.77%* 0.77% 0.78% 0.80% 0.86% 0.86%
Ratio of net investment
income to average
net assets ....... 1.52%* 2.07% 1.01% 2.00% 2.43% 3.58%
Portfolio turnover
rate ............. 234.38%* 277.36% 297.81% 225.87% 316.72% 331.15%
*Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE INCOME PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period:
(Unaudited)
For the
six months For the fiscal year ended December 31,
ended -----------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
Net asset value,
beginning of
period ........... $6.7689 $6.9180 $5.9530 $5.3158 $5.0000
------- ------- ------- ------- -------
Income from investment
operations:
Net investment
income .......... 0.0426 0.0703 0.0651 0.0803 0.0633
Net realized and
unrealized gain (loss)
on investments .. 1.4241 (0.1491) 0.9650 0.6496 0.3158
------- ------- ------- ------- -------
Total from investment
operations ....... 1.4667 (0.0788) 1.0301 0.7299 0.3791
------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment
income .......... (0.0000) (0.0703)(0.0651) (0.0803)(0.0633)
Distribution from
capital gains.... (0.0000) (0.0000)(0.0000) (0.0124)(0.0000)
------- ------- ------- ------- -------
Total distributions. (0.0000) (0.0703)(0.0651) (0.0927)(0.0633)
------- ------- ------- ------- -------
Net asset value,
end of period .... $8.2356 $6.7689 $6.9180 $5.9530 $5.3158
======= ======= ======= ======= =======
Total return........ 21.67% -1.14% 17.30% 13.78% 17.43%
Net assets, end of
period (000
omitted) .........$284,711$218,774$155,092 $65,027 $15,640
Ratio of expenses
to average net
assets ............ 0.78%** 0.77% 0.79% 0.85% 0.89%
Ratio of net investment
income to average
net assets ....... 1.21%** 1.16% 1.36% 1.78% 2.47%
Portfolio turnover
rate ............. 13.78%** 23.32% 18.38% 15.74% 4.41%
*The Income Portfolio's inception date is May 16, 1991; however, since this
Portfolio did not have any investment activity or incur expenses prior to
the date of initial offering, the per share information is for a capital
share outstanding for the period from July 16, 1991 (initial offering)
through December 31, 1991. Ratios and the portfolio turnover rate have been
annualized.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE INTERNATIONAL PORTFOLIO
For a Share of Capital Stock Outstanding Throughout The Period:
(Unaudited)
For the For the
six months period
ended ended
6/30/95 12/31/94*
---------- ----------
Net asset value,
beginning of
period ........... $4.9926 $5.0000
------- -------
Income from investment
operations:
Net investment
income .......... 0.0740 0.0207
Net realized and
unrealized gain (loss)
on investments... 0.2927 (0.0074)
------- -------
Total from investment
operations ....... 0.3667 0.0133
Less dividends from net
investment
income .......... (0.0000) (0.0207)
------- -------
Net asset value,
end of period .... $5.3593 $4.9926
======= =======
Total return........ 7.34% 0.26%
Net assets, end of
period (000
omitted) ......... $40,396 $26,020
Ratio of expenses
to average net
assets ............ 1.05%** 1.26%
Ratio of net investment
income to average
net assets ....... 3.44%** 1.36%
Portfolio turnover
rate ............. 27.66%** 23.23%
*The International Portfolio's inception date is April 28, 1994; however,
since this Portfolio did not have any investment activity or incur expenses
prior to the date of initial offering, the per share information is for a
capital share outstanding for the period from May 3, 1994 (initial offering)
through December 31, 1994. Ratios and the portfolio turnover rate have been
annualized.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE SMALL CAP PORTFOLIO
For a Share of Capital Stock Outstanding Throughout The Period:
(Unaudited)
For the For the
six months period
ended ended
6/30/95 12/31/94*
---------- ----------
Net asset value,
beginning of
period ........... $5.9918 $5.0000
------- -------
Income from investment
operations:
Net investment
income .......... 0.0600 0.0376
Net realized and
unrealized gain
on investments .. 0.8812 1.0086
------- -------
Total from investment
operations ....... 0.9412 1.0462
------- -------
Less distributions:
Dividends from net
investment income (0.0000) (0.0376)
Distributions from
capital gains.... (0.0000) (0.0168)
------- -------
Total distributions (0.0000) (0.0544)
------- -------
Net asset value,
end of period .... $6.9330 $5.9918
======= =======
Total return........ 15.71% 20.92%
Net assets, end of
period (000
omitted) ......... $34,207 $16,080
Ratio of expenses
to average net
assets ............ 1.01%** 1.08%
Ratio of net investment
income to average
net assets ....... 2.36%** 2.35%
Portfolio turnover
rate ............. 56.10%** 21.61%
*The Small Cap Portfolio's inception date is April 28, 1994; however, since
this Portfolio did not have any investment activity or incur expenses prior
to the date of initial offering, the per share information is for a capital
share outstanding for the period from May 3, 1994 (initial offering) through
December 31, 1994. Ratios and the portfolio turnover rate have been
annualized.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE BALANCED PORTFOLIO
For a Share of Capital Stock Outstanding Throughout The Period:
(Unaudited)
For the For the
six months period
ended ended
6/30/95 12/31/94*
---------- ----------
Net asset value,
beginning of
period ........... $4.9359 $5.0000
------- -------
Income from investment
operations:
Net investment
income .......... 0.0732 0.0460
Net realized and
unrealized gain (loss)
on investments .. 0.5080 (0.0641)
------- -------
Total from investment
operations ....... 0.5812 (0.0181)
Less dividends from net
investment
income .......... (0.0000) (0.0460)
------- -------
Net asset value,
end of period .... $5.5171 $4.9359
======= =======
Total return........ 11.78% -0.37%
Net assets, end of
period (000
omitted) ......... $15,766 $8,671
Ratio of expenses
to average net
assets ............ 0.79%** 0.95%
Ratio of net investment
income to average
net assets ....... 3.54%** 3.14%
Portfolio turnover
rate ............. 78.58%** 19.74%
*The Balanced Portfolio's inception date is April 28, 1994; however, since
this Portfolio did not have any investment activity or incur expenses prior
to the date of initial offering, the per share information is for a capital
share outstanding for the period from May 3, 1994 (initial offering) through
December 31, 1994. Ratios and the portfolio turnover rate have been
annualized.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE ASSET STRATEGY PORTFOLIO
For a Share of Capital Stock Outstanding Throughout The Period:
(Unaudited)
For the
period
ended
6/30/95*
----------
Net asset value,
beginning of
period ........... $5.0000
-------
Income from investment
operations:
Net investment
income .......... 0.0132
Net realized and
unrealized gain
on investments .. 0.0228
-------
Total from investment
operations ....... 0.0360
-------
Net asset value,
end of period .... $5.0360
=======
Total return........ 0.72%
Net assets, end of
period (000
omitted) ......... $817
Ratio of expenses
to average net
assets ............ 0.95%
Ratio of net investment
income to average
net assets ....... 4.61%
Portfolio turnover
rate ............. 0.00%
*The Asset Strategy Portfolio's inception date is February 14, 1995; however,
since this Portfolio did not have any investment activity or incur expenses
prior to the date of initial offering, the per share information is for a
capital share outstanding for the period from May 1, 1995 (initial offering)
through June 30, 1995. Ratios and the portfolio turnover rate have been
annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE MONEY MARKET PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period:
(Unaudited)
For the
six months For the fiscal year ended December 31,
ended -----------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
Net asset value,
beginning of
period ........... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment
income .......... 0.0273 0.0368 0.0260 0.0324 0.0536 0.0753
Less dividends
declared ......... (0.0273) (0.0368)(0.0260) (0.0324)(0.0536) (0.0753)
------- ------- ------- ------- ------- -------
Net asset value,
end of period .... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total return ....... 2.76% 3.72% 2.63% 3.29% 5.49% 7.82%
Net assets, end of
period (000
omitted) .........$31,035 $30,812 $26,000 $23,995 $19,797 $16,870
Ratio of expenses
to average net
assets ............ 0.65%* 0.65% 0.65% 0.65% 0.76% 0.79%
Ratio of net investment
income to average
net assets ....... 5.51%* 3.72% 2.61% 3.17% 5.33% 7.52%
*Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE LIMITED-TERM BOND PORTFOLIO
For a Share of Capital Stock Outstanding Throughout The Period:
(Unaudited)
For the For the
six months period
ended ended
6/30/95 12/31/94*
---------- ----------
Net asset value,
beginning of
period ........... $4.8611 $5.0000
------- -------
Income from investment
operations:
Net investment
income .......... 0.1450 0.1507
Net realized and
unrealized gain (loss)
on investments .. 0.2886 (0.1375)
------- -------
Total from investment
operations ....... 0.4336 0.0132
------- -------
Less distributions:
Dividends from net
investment
income .......... (0.0000) (0.1507)
Distribution from
capital gains ... (0.0000) (0.0014)
------- -------
Total distributions (0.0000) (0.1521)
------- -------
Net asset value,
end of period .... $5.2947 $4.8611
======= =======
Total return........ 8.92% 0.26%
Net assets, end of
period (000
omitted) ......... $2,219 $1,645
Ratio of expenses
to average net
assets ............ 0.83%** 0.93%
Ratio of net investment
income to average
net assets ....... 6.37%** 5.89%
Portfolio turnover
rate ............. 0.00%** 93.83%
*The Limited-Term Bond Portfolio's inception date is April 28, 1994; however,
since this Portfolio did not have any investment activity or incur expenses
prior to the date of initial offering, the per share information is for a
capital share outstanding for the period from May 3, 1994 (initial offering)
through December 31, 1994. Ratios and the portfolio turnover rate have been
annualized.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE BOND PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period:
(Unaudited)
For the
six months For the fiscal year ended December 31,
ended -----------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
Net asset value,
beginning of
period ........... $4.7393 $5.4045 $5.2626 $5.2661 $4.9534 $5.0249
------- ------- ------- ------- ------- -------
Income from investment
operations:
Net investment
income .......... 0.1727 0.3507 0.3334 0.3643 0.3867 0.4025
Net realized and
unrealized gain
(loss) on
investments ..... 0.4143 (0.6652) 0.3046 0.0216 0.3771 (0.0715)
------- ------- ------- ------- ------- -------
Total from investment
operations ....... 0.5870 (0.3145) 0.6380 0.3859 0.7638 0.3310
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment
income .......... (0.0000) (0.3507)(0.3334) (0.3643)(0.3867) (0.4025)
Distribution from
capital gains ... (0.0000) (0.0000)(0.1627) (0.0251)(0.0644) (0.0000)
------- ------- ------- ------- ------- -------
Total distributions. (0.0000) (0.3507)(0.4961) (0.3894)(0.4511) (0.4025)
------- ------- ------- ------- ------- -------
Net asset value,
end of period .... $5.3263 $4.7393 $5.4045 $5.2626 $5.2661 $4.9534
======= ======= ======= ======= ======= =======
Total return ....... 12.39% -5.90% 12.37% 7.67% 16.19% 7.03%
Net assets, end of
period (000
omitted) .........$83,689 $74,017 $81,727 $49,428 $29,112 $16,464
Ratio of expenses
to average net
assets ............ 0.62%* 0.62% 0.62% 0.64% 0.72% 0.78%
Ratio of net investment
income to average
net assets ....... 6.95%* 6.73% 6.01% 6.91% 7.65% 8.05%
Portfolio turnover
rate ............. 64.96%* 135.82% 68.75% 44.32% 52.50% 51.50%
*Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
THE HIGH INCOME PORTFOLIO
For a Share of Capital Stock Outstanding Throughout Each Period:
(Unaudited)
For the
six months For the fiscal year ended December 31,
ended -----------------------------------------
6/30/95 1994 1993 1992 1991 1990
---------- ------- ------- ------- ------- -------
Net asset value,
beginning of
period ........... $4.1118 $4.6373 $4.2886 $4.0770 $3.4067 $4.1288
------- ------- ------- ------- ------- -------
Income from investment
operations:
Net investment
income .......... 0.1967 0.4106 0.3899 0.4050 0.4368 0.4346
Net realized and
unrealized gain
(loss) on
investments ..... 0.2225 (0.5255) 0.3487 0.2116 0.6703 (0.7221)
------- ------- ------- ------- ------- -------
Total from investment
operations ....... 0.4192 (0.1149) 0.7386 0.6166 1.1071 (0.2875)
------- ------- ------- ------- ------- -------
Less dividends from
net investment
income ........... (0.0000) (0.4106)(0.3899) (0.4050)(0.4368) (0.4346)
------- ------- ------- ------- ------- -------
Net asset value,
end of period .... $4.5310 $4.1118 $4.6373 $4.2886 $4.0770 $3.4067
======= ======= ======= ======= ======= =======
Total return ....... 10.20% -2.55% 17.90% 15.70% 34.19% -7.44%
Net assets, end of
period (000
omitted) ......... $7,456 $72,644 $71,265 $41,456 $24,394 $13,868
Ratio of expenses
to average net
assets ............ 0.73%* 0.74% 0.75% 0.77% 0.87% 0.90%
Ratio of net investment
income to average
net assets ....... 9.22%* 9.03% 8.66% 9.48% 11.32% 11.55%
Portfolio turnover
rate ............. 33.82%* 37.86% 54.22% 60.79% 34.00% 12.21%
*Annualized.
See notes to financial statements.
<PAGE>
TMK/UNITED FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 1 -- Significant Accounting Policies
TMK/United Funds, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
Capital stock is currently divided into the ten classes that are designated the
Growth Portfolio, the Income Portfolio, the International Portfolio, the Small
Cap Portfolio, the Balanced Portfolio, the Asset Strategy Portfolio, the Money
Market Portfolio, the Limited-Term Bond Portfolio, the Bond Portfolio and the
High Income Portfolio. The assets belonging to each Portfolio are held
separately by the Custodian. The capital shares of each Portfolio represent a
pro rata beneficial interest in the principal, net income, and realized and
unrealized capital gains or losses of its respective investments and other
assets. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Security valuation -- Each stock and convertible bond is valued at the
latest sale price thereof on the last business day of the fiscal period as
reported by the principal securities exchange on which the issue is traded
or, if no sale is reported for a stock, the average of the latest bid and
asked prices. Bonds, other than convertible bonds, are valued using a
pricing system provided by a major dealer in bonds. Convertible bonds are
valued using this pricing system only on days when there is no sale
reported. Stocks which are traded over-the-counter are priced using
Nasdaq (National Association of Securities Dealers Automated Quotations)
which provides information on bid and asked or closing prices quoted by
major dealers in such stocks. Securities for which quotations are not
readily available are valued as determined in good faith in accordance
with procedures established by and under the general supervision of the
Fund's Board of Directors. Short-term debt securities are valued at
amortized cost, which approximates market.
B. Security transactions and related investment income -- Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Securities gains and losses are calculated on the
identified cost basis. Original issue discount (as defined in the
Internal Revenue Code), premiums on the purchase of bonds and post-1984
market discount are amortized for both financial and tax reporting
purposes over the remaining lives of the bonds. Dividend income is
recorded on the ex-dividend date except that certain dividends from
foreign securities are recorded as soon as the Fund is informed of the ex-
dividend date. Interest income is recorded on the accrual basis. See
Note 3 -- Investment Securities Transactions.
C. Foreign currency translations -- All assets and liabilities denominated in
foreign currencies are translated into U.S. dollars daily. Purchases and
sales of investment securities and accruals of income and expenses are
translated at the rate of exchange prevailing on the date of the
transaction. For assets and liabilities other than investments in
securities, net realized and unrealized gains and losses from foreign
currency translations arise from changes in currency exchange rates. The
Fund combines fluctuations from currency exchange rates and fluctuations
in market value when computing net realized and unrealized gain or loss
from investments.
D. Federal income taxes -- It is the Fund's policy to distribute all of its
taxable income and capital gains to its shareholders and otherwise qualify
as a regulated investment company under the Internal Revenue Code. In
addition, the Fund intends to pay distributions as required to avoid
imposition of excise tax. Accordingly, provision has not been made for
Federal income taxes. See Note 4 -- Federal Income Tax Matters.
E. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by each Portfolio on the record date. Net investment income
distributions and capital gains distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are due to differing treatments
for items such as deferral of wash sales and post-October losses, foreign
currency transactions, net operating losses and expiring capital loss
carryforwards.
NOTE 2 -- Investment Management And Payments To Affiliated Persons
The Fund pays a fee for investment management services. The fee is
computed daily based on the net asset value at the close of business. The fee
consists of two elements: (i) a "Specific" fee computed on net asset value as
of the close of business each day at the following annual rates: Growth
Portfolio - .20% of net assets; Income Portfolio - .20% of net assets;
International Portfolio - .30% of net assets; Small Cap Portfolio - .35% of net
assets; Balanced Portfolio - .10% of net assets; Asset Strategy Portfolio -
.30% of net assets; Money Market Portfolio - none; Limited-Term Bond Portfolio
- - .05% of net assets; Bond Portfolio - .03% of net assets; High Income
Portfolio - .15% of net assets and (ii) a base fee computed each day on the
combined net asset values of all of the Portfolios (approximately $913.4
million of combined net assets at June 30, 1995) and allocated among the
Portfolios based on their relative net asset size at the annual rates of .51%
of the first $750 million dollars of combined net assets, .49% on that amount
between $750 million and $1.5 billion, .47% between $1.5 billion and $2.25
billion, and .45% of that amount over $2.25 billion. The Fund accrues and pays
this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
Fund and Waddell & Reed, Inc. (W&R), Waddell & Reed Investment Management
Company ("WRIMCO"), a wholly-owned subsidiary of W&R, serves as the Fund's
investment manager.
The Fund has an Accounting Services Agreement with Waddell & Reed Services
Company ("WARSCO"), a wholly-owned subsidiary of W&R. Under the agreement,
WARSCO acts as the agent in providing accounting services and assistance to the
Fund and pricing daily the value of shares of each Portfolio. For these
services, each Portfolio pays WARSCO a monthly fee of one-twelfth of the annual
fee shown in the following table.
Accounting Services Fee
Average
Net Asset Level Annual Fee
(all dollars in millions) Rate for Each Portfolio
-------------------------- -----------------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 10,000
From $ 25 to $ 50 $ 20,000
From $ 50 to $ 100 $ 30,000
From $ 100 to $ 200 $ 40,000
From $ 200 to $ 350 $ 50,000
From $ 350 to $ 550 $ 60,000
From $ 550 to $ 750 $ 70,000
From $ 750 to $1,000 $ 85,000
$1,000 and Over $100,000
The Fund paid Directors' fees of $12,528.
W&R is an indirect subsidiary of Torchmark Corporation, a holding company,
and United Investors Management Company, a holding company, and a direct
subsidiary of Waddell & Reed Financial Services, Inc., a holding company.
NOTE 3 -- Investment Security Transactions
Investment securities transactions for the period ended June 30, 1995, are
summarized as follows:
Growth Income International
Portfolio Portfolio Portfolio
----------- --------- ---------
Purchases of investment
securities, excluding short-
term and U.S. Government
securities $383,940,220 $30,274,539 $21,331,023
Purchases of U.S. Government
securities --- --- ---
Purchases of short-term
securities 307,948,586 66,383,589 59,716,875
Proceeds from maturities
and sales of investment
securities, excluding
short-term and U.S.
Government securities 306,613,991 15,946,372 2,892,515
Proceeds from maturities
and sales of U.S.
Government securities --- --- ---
Proceeds from maturities
and sales of short-term
securities 371,710,022 65,185,771 66,654,849
Small Cap BalancedAsset Strategy
Portfolio Portfolio Portfolio
----------- --------- ---------
Purchases of investment
securities, excluding short-
term and U.S. Government
securities $10,866,216 $9,964,318 $---
Purchases of U.S. Government
securities --- 2,512,968 ---
Purchases of short-term
securities 78,453,779 13,121,833 883,252
Proceeds from maturities
and sales of investment
securities, excluding
short-term and U.S.
Government securities 3,244,562 3,973,732 ---
Proceeds from maturities
and sales of U.S.
Government securities --- --- ---
Proceeds from maturities
and sales of short-term
securities 71,896,446 15,078,329 88,000
Money Limited-
Market Term Bond Bond
Portfolio Portfolio Portfolio
----------- --------- ---------
Purchases of investment
securities, excluding short-
term and U.S. Government
securities --- $262,833 $12,249,933
Purchases of U.S. Government
securities --- 99,875 11,882,444
Purchases of short-term
securities $127,300,639 642,686 26,906,380
Proceeds from maturities
and sales of investment
securities, excluding
short-term and U.S.
Government securities --- --- 11,352,528
Proceeds from maturities
and sales of U.S.
Government securities --- --- 14,441,065
Proceeds from maturities
and sales of short-term
securities 125,966,093 405,000 21,341,800
High
Income
Portfolio
-----------
Purchases of investment
securities, excluding short-
term and U.S. Government
securities $11,456,949
Purchases of U.S. Government
securities ---
Purchases of short-term
securities 26,154,865
Proceeds from maturities
and sales of investment
securities, excluding
short-term and U.S.
Government securities 13,100,319
Proceeds from maturities
and sales of U.S.
Government securities ---
Proceeds from maturities
and sales of short-term
securities 20,001,000
For Federal income tax purposes, cost of investments owned at June 30,
1995 and the related unrealized appreciation (depreciation) were as follows:
Aggregate
Cost Appreciation Depreciation Appreciation
-----------------------------------------------
Growth Portfolio $318,766,071$27,993,456 $7,586,169$20,407,287
Income Portfolio 219,943,056 65,032,099 2,452,328 62,579,771
International Portfolio 38,265,023 2,864,023 1,328,223 1,535,800
Small Cap Portfolio 30,188,089 4,596,210 729,635 3,866,575
Balanced Portfolio 15,424,894 1,079,020 185,727 893,293
Asset Strategy Portfolio 797,637 --- --- ---
Money Market Portfolio 29,409,558 --- --- ---
Limited-Term Bond Portfolio 2,254,000 55,819 507 55,312
Bond Portfolio 80,680,462 2,812,728 637,922 2,174,806
High Income Portfolio 78,452,353 2,832,692 1,706,468 1,126,224
NOTE 4 -- Federal Income Tax Matters
The Fund's income and expenses attributed to each Portfolio and the gains
and losses on security transactions of each Portfolio have been attributed to
that Portfolio for Federal income tax purposes as well as accounting purposes.
For Federal income tax purposes, Growth, Small Cap and Limited-Term Bond
Portfolios realized capital gain net income of $14,154,374, $44,381 and $455,
respectively, during the year ended December 31, 1994. The capital gain net
income was paid to shareholders during the year ended December 31, 1994. For
Federal income tax purposes the Income Portfolio realized capital gain net
income of $685,306 during the year ended December 31, 1994. These capital
gains were entirely offset by utilization of capital loss carryforwards.
Remaining prior year capital loss carryforwards of Income Portfolio aggregated
$459,928 at December 31, 1994, and are available to offset future realized
capital gain net income through December 31, 2001. For Federal income tax
purposes, Bond, High Income, Balanced and International Portfolios realized
capital losses of $3,479,696, $1,428,392, $3,218 and $21,009, respectively,
during the year ended December 31, 1994. These amounts are available to offset
future realized capital gain net income through December 31, 2002. In
addition, the High Income Portfolio has $316,713 in capital loss carryforwards
from prior years, which are available to offset future realized capital gain
net income through December 31, 1999.
Note 5 -- Organization
The inception date of the International Portfolio, the Small Cap
Portfolio, the Balanced Portfolio, and the Limited-Term Bond Portfolio is April
28, 1994; however, these Portfolios did not have any investment activity or
incur expenses prior to the date of initial offering, May 3, 1994. The
inception date of the Asset Strategy Portfolio is February 14, 1995; however,
this Portfolio did not have any investment activity or incur expenses prior to
the date of initial offering, May 1, 1995. The accompanying financial
statements reflect activity for these periods.
<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
Linda Graves, Topeka, Kansas
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
James B. Judd, Kansas City, Missouri
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Eleanor B. Schwartz, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
James C. Cusser, Vice President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
Theodore W. Howard, Vice President and Treasurer
Antonio Intagliata, Vice President
Sharon K. Pappas, Vice President and Secretary
Richard K. Poettgen, Vice President
Cynthia P. Prince-Fox, Vice President
Louise D. Rieke, Vice President
Mark G. Seferovich, Vice President
W. Patrick Sterner, Vice President
Carl E. Sturgeon, Vice President
Russell E. Thompson, Vice President
James D. Wineland, Vice President
Mark L. Yockey, Vice President
<PAGE>
Advantage I. A flexible premium variable life insurance policy.
Advantage II. A deferred variable annuity policy.
Both offer you the investment flexibility of positioning your investment in one
or more of the following professionally managed portfolios:
GROWTH Portfolio
Objective: Capital growth with income as a secondary goal.
Invested In: Mainly common stocks of large, well-known companies representing
major sectors of the economy.
INCOME Portfolio
Objective: Maintain current income, subject to market conditions.
Invested In: Primarily common stocks or securities convertible into common
stocks.
INTERNATIONAL Portfolio
Objective: Long-term appreciation of capital with a secondary goal of
current income
Invested in: Securities issued by companies or governments of any nation.
SMALL CAP Portfolio
Objective: Capital growth
Invested in: Common stocks of relatively new or unseasoned companies, or
smaller companies positioned in new and emerging industries.
BALANCED Portfolio
Objective: Current income with a secondary goal of long-term appreciation of
capital.
Invested in: A variety of securities including debt securities, common stocks
and preferred stocks.
ASSET STRATEGY Portfolio
Objective: High total return with reduced risk over the long term.
Invested In: An allocation of its assets among stocks, bonds, and short-term
instruments.
MONEY MARKET Portfolio
Objective: Maximum income consistent with stability of principal.
Invested In: Short-term securities including bank CD's, government securities,
investment grade commercial paper and other corporate debt
securities.
LlMITED-TERM BOND Portfolio
Objective: High level of current income consistent with the preservation of
capital.
Invested in: Debt securities of investment grade, including debt securities
issued or guaranteed by the U.S. Government or its agencies or
instrumentalities; the portfolio will maintain a dollar weighted
average maturity of two to five years.
BOND Portfolio
Objective: Income with an emphasis on preservation of capital.
Invested In: High-quality bonds issued by companies in a variety of
industries; government securities.
<PAGE>
HIGH INCOME Portfolio
Objective: High level of income with a secondary objective of capital
appreciation when consistent with its primary objective.
Invested In: Corporate bonds offering higher rates of return than investment-
grade bonds.
FOR MORE INFORMATION:
Contact your representative, or your local office as listed on your Account
Statement, or contact:
United Investors Life
Variable Products Division
P.O. Box 156
Birmingham, AL 35201-0156
(205)325-4300
NUR1016SA(6-95)
printed on recycled paper
