Aetna GET Fund, Series B
The GET Fund, Series B Fund achieved a total return of 14.51% for the first
six months of 1995 (net of investment management and other fund expenses),
compared to 16.63% for the benchmark index comprised of 60% of the S&P 500
(an unmanaged index) and 40% of the Lehman Brothers Aggregate Bond Index.
This result was achieved with an asset mix which averaged approximately
30% fixed income securities and 70% equity securities during the period. The
equity portion of the portfolio outperformed the S&P 500 during the second
quarter of 1995, while the fixed income portion, which is conservatively
invested in short-term Treasuries, underperformed the Lehman Brothers
Aggregate Bond Index. Given the conservative nature of the fixed component,
this portion of the portfolio is likely to underperform during strong bond
market rallies and outperform when the bond market is weak.
The Fund's overweight positions in Computers & Office Equipment, and Banks
helped performance while underweight positions in Semiconductors &
Electronics and Transportation hurt performance. The Fund currently maintains
an asset allocation of 77% stocks and 23% bonds.
<PAGE>
Aetna GET Fund, Series B
Statement of Assets and Liabilities
June 30, 1995 (Unaudited)
Assets:
Investments, at market value (Note 1) $81,804,807
Cash 30,343
Receivable for:
Dividends and interest 131,801
Investments sold 1,357,388
------------
Total assets 83,324,339
------------
Liabilities:
Payable for investments purchased 1,287,067
Accrued investment advisory fees 53,595
Accrued service fees 6,132
Accrued custodian fees 14,806
Other liabilities 21,264
------------
Total liabilities 1,382,864
------------
Net assets applicable to outstanding shares $81,941,475
============
Net assets represented by:
Paid-in capital $72,361,491
Net unrealized gain 7,891,759
Undistributed net investment income 1,285,079
Accumulated net realized gain 403,146
------------
Total--representing net assets applicable to outstanding
shares $81,941,475
============
Shares authorized Unlimited
Shares outstanding 7,213,867
Net asset value per share $ 11.36
Cost of investments $73,913,048
See Notes to Financial Statements.
Statement of Operations
Six-Month Period Ended June 30, 1995 (Unaudited)
Investment income: (Note 1)
Interest $ 977,454
Dividends 660,572
------------
1,638,026
Foreign taxes withheld (271)
------------
Total investment income 1,637,755
------------
Expenses: (Note 2)
Investment advisory fee 291,916
Administrative personnel and service fees 35,066
Custodian and transfer agent fees 17,709
Trustees' fees 7,981
Printing and postage fees 3,259
Audit fees 7,626
Miscellaneous 5,980
------------
Total investment expenses 369,537
------------
Net investment income 1,268,218
------------
Net realized and change in unrealized gain (loss):
(Notes 1 and 3)
Net realized gain (loss) on:
Sales of investments, excluding short-term investments 1,061,340
Futures contracts (7,985)
------------
Net realized gain 1,053,355
------------
Net change in unrealized gain (loss):
Investments 8,273,487
Futures contracts (42,325)
------------
Net change in unrealized gain 8,231,162
------------
Net realized and change in unrealized gain 9,284,517
------------
Net increase in net assets resulting from operations $10,552,735
============
<PAGE>
Aetna GET Fund, Series B
Statements of Changes in Net Assets
Six-Month Period Ended
----------------------------------
June 30, 1995 December 31,
(Unaudited) 1994
--------------- ----------------
Operations:
Net investment income $ 1,268,218 $ 1,829,846
Net realized gain 1,053,355 115,962
Net change in unrealized gain (loss) 8,231,162 (339,404)
--------------- ----------------
Net increase in net assets resulting
from operations 10,552,735 1,606,404
--------------- ----------------
Distributions to shareholders: (Note 1)
From net investment income 0 (1,829,846)
In excess of net investment income 0 (454,239)
From net realized gains 0 (273,657)
In excess of net realized gains 0 (21,413)
--------------- ----------------
Decrease in net assets from
distributions to shareholders 0 (2,579,155)
--------------- ----------------
Share transactions:
Proceeds from shares sold 186,901 102,292,322
Net asset value of shares issued to
shareholders upon reinvestment of
distributions 0 2,579,155
Payment for shares redeemed (2,942,763) (29,754,124)
--------------- ----------------
Net increase (decrease) in net assets
from share transactions (2,755,862) 75,117,353
--------------- ----------------
Change in net assets 7,796,873 74,144,602
=============== ================
Net assets:
Beginning of period 74,144,602 0
=============== ================
End of period $81,941,475 $ 74,144,602
=============== ================
End of period net assets include
undistributed (distributions in excess
of) net investment income $ 1,285,079 $ (339,404)
=============== ================
Share transactions:
Shares sold 17,863 10,151,896
Shares issued upon reinvestment 0 259,999
Shares redeemed (278,107) (2,937,784)
--------------- ----------------
Net increase (decrease) (260,244) 7,474,111
=============== ================
See Notes to Financial Statements.
Financial Highlights
Selected data for each share outstanding throughout each period:
Six-Month Period Ended
----------------------------------
June 30, 1995 December 31,
(Unaudited) 1994
--------------- ----------------
Net asset value, beginning of period $ 9.920 10.092
--------------- ----------------
Income from investment operations:
Net investment income 0.173 0.250
Net realized and unrealized gain
(loss) 1.266 (0.064)
--------------- ----------------
Total from investment operations 1.439 0.186
--------------- ----------------
Less distributions:
From net investment income 0.000 (0.254)
In excess of net investment income 0.000 (0.063)
From net realized gains on investments 0.000 (0.038)
In excess of net realized gains on
investments 0.000 (0.003)
--------------- ----------------
Total distributions 0.000 (0.358)
--------------- ----------------
Net asset value, end of period $11.359 9.920
=============== ================
Total return* 14.51% 1.83%
Net assets, end of period (000's) $81,941 $74,145
Ratio of total expenses to average net
assets** 0.96% 0.53%
Ratio of net investment income to
average net assets** 3.29% 4.52%
Ratio of net expenses before fee waiver
to average net assets ** 0.96% 0.84%
Portfolio turnover rate 51.81% 36.12%
*The total return percentage does not reflect any separate account charges
under variable annuity contracts.
**Annualized
Per share data calculated using weighted average number of shares outstanding
throughout the period.
<PAGE>
Aetna GET Fund, Series B
Notes to Financial Statements
June 30, 1995 (Unaudited)
1. Summary of Significant Accounting Policies
Aetna GET Fund, Series B ("Fund") is registered under the Investment Company
Act of 1940 as a diversified open-end management investment trust whose
shares are currently sold to Aetna Life Insurance and Annuity Company
("Company") for allocation to certain of its variable life/annuity accounts
("Accounts"). The Company's Accounts held 100% of the Fund's outstanding
shares at June 30, 1995.
The Fund accumulated deposits from March 15, 1994 through June 30, 1994.
The Guarantee Period for the Fund is from July 1, 1994 to June 30, 1999. The
minimum targeted rate of return during this period is 2.5% per year before
asset based contract charges and Series B costs of operations.
The accompanying financial statements of the Fund have been prepared in
accordance with generally accepted accounting principles.
a. Valuation of Investments Investments are stated at market values based
upon closing sales prices as reported on national securities exchanges or,
for over-the-counter securities, at the mean of the bid and asked prices.
Short-term investments maturing in more than sixty days for which market
quotations are readily available are valued at current market value. Short-
term investments maturing in less than sixty days are valued at amortized
cost which when combined with accrued interest approximates market.
Securities for which market quotations are not considered to be readily
available are valued in good faith using methods approved by the Board of
Directors.
The accounting records of the Fund are maintained in U.S. dollars.
Investment securities and other assets and liabilities denominated in a
foreign currency are translated into U.S. dollars at the prevailing rates of
exchange at the end of the period. Purchases and sales of securities, income
receipts, and expense payments are translated into U.S. dollars at the
prevailing exchange rate on the respective dates of the transactions.
b. Futures Contracts A futures contract is an agreement between two
parties to buy and sell a specific amount of a commodity, security or
financial instrument including an index of stocks at a set price on a future
date. The Fund uses futures contracts as a hedge against declines in the
value of portfolio securities. The Fund may also purchase futures contracts
to gain market exposure as it may be more cost effective than purchasing
individual securities.
Upon entering into a futures contract, the Fund is required to deposit
with a broker, an amount (initial margin) equal to a percentage of the
purchase price indicated by the futures contract. Subsequent deposits
(variation margin) are received or paid each day by the Fund equal to the
daily fluctuations in the market value of the contract. These amounts are
recorded by the Fund as unrealized gains or losses. When a contract is
closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at
the time it was closed. Generally, futures contracts are closed prior to
expiration.
The risks associated with futures contracts may arise from an imperfect
correlation between the change in market value of the securities held by the
Fund and the price of futures contracts. Risks may also arise from an
illiquid secondary market, or from the inability of counterparties to meet
the terms of the contract.
For federal tax purposes, any futures contracts which remain open at the
end of the fiscal period are marked-to-market and the resultant net gain or
loss is included in federal taxable income.
c. Federal Income Taxes As a qualified regulated investment company, the
Fund is relieved of federal income and excise taxes by distributing its net
taxable investment income and capital gains, if any, in compliance with the
applicable provisions of the Internal Revenue Code.
d. Distributions Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions and losses deferred due to wash sales.
e. Other Investment transactions are accounted for on the day following
trade-date, except same day settlements which are accounted for on the
trade-date. Interest income is recorded on an accrual basis. Discounts and
premiums on securities purchased are amortized over the life of the
respective security. Dividend income and stock splits as well as
distributions to the shareholders are recorded on the ex-dividend date.
Realized gains and losses from investment transactions are determined on an
identified cost basis.
2. Investment Advisory Fee and Other Expenses
The Fund pays the Company (its investment adviser) an annual fee of
three-quarters of one percent (.75%) of its average daily net assets. The
Fund also paid the Company $35,066 for administrative personnel and service
fees for the six-month period ended June 30, 1995. Other than expenses
specifically assumed by the Company under the Management Agreement, all
expenses incurred in the operation of the Fund are borne by the Fund.
3. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the six-month period ended June 30, 1995
aggregated $38,222,372 and $38,815,204, respectively.
4. Capital Loss Carryforward
At June 30, 1995, for federal income tax purposes, the Fund had a capital
loss carryforward of $608,000 which will expire in 2003.
<PAGE>
Aetna GET Fund, Series B
Portfolio of Investments--June 30, 1995 (Unaudited)
COMMON AND PREFERRED STOCKS (72.8%)
Common Stocks (72.4%)
Number of
Shares Market Value
-------------- ---------------
Aerospace & Defense (1.4%)
Lockheed Martin Corp. 4,884 $ 308,303
Loral Corp. 1,500 77,625
McDonnell Douglas Corp. 9,600 736,800
---------------
1,122,728
---------------
Apparel & Cosmetics (0.7%)
Alberto-Culver Co. Class B 6,400 193,600
Gillette Co. 2,000 89,250
Nike, Inc. Class B 1,400 117,600
Russell Corp. 2,400 69,000
Springs Industries, Inc. Class A 2,600 96,850
---------------
566,300
---------------
Autos & Auto Equipment (2.2%)
Eaton Corporation 4,600 267,375
Echlin, Inc. 10,200 354,450
Ford Motor Co. 13,400 398,650
TRW Inc. 7,000 559,125
Varity Corp.+ 5,000 220,000
---------------
1,799,600
---------------
Banks (4.9%)
Bank of Boston Corp. 10,000 375,000
BankAmerica Corp. 8,300 436,788
Chemical Banking Corp. 14,700 694,575
Citicorp 8,477 490,606
First Interstate Bancorp 6,000 481,500
Mellon Bank Corp. 4,800 199,800
NationsBank, Corp. 3,600 193,050
Suntrust Banks, Inc. 10,500 611,625
The Bank of New York Co., Inc. 13,000 524,875
---------------
4,007,819
---------------
Building Materials & Construction (0.1%)
Armstrong World Industries, Inc. 1,800 90,225
---------------
Chemicals (2.7%)
Dow Chemical Co. 6,200 445,625
Du Pont (E.I.) De Nemours & Co. 6,500 446,875
Monsanto Co. 2,500 225,312
Morton International, Inc. 14,100 412,425
PPG Industries, Inc. 1,800 77,400
Union Carbide Corp. 16,900 564,037
---------------
2,171,674
---------------
Commercial Services (0.3%)
Service Corp. International 6,600 208,725
---------------
Computer Software (0.4%)
ArcSys, Inc.+ 1,000 34,375
BMC Software, Inc.+ 1,600 123,200
Novell, Inc.+ 7,600 151,525
---------------
309,100
---------------
Computers & Office Equipment (4.4%)
Ceridian Corp.+ 14,700 542,063
International Business Machines Corp. 14,500 1,392,000
Microsoft Corp.+ 5,800 524,537
Sun Microsystems, Inc.+ 15,000 728,437
Xerox Corp. 3,700 433,825
---------------
3,620,862
---------------
Diversified (2.3%)
Dover Corp. 7,700 560,175
ITT Corp. 3,700 434,750
Number of
Shares Market Value
-------------- ---------------
NACCO Industries, Inc. Class A 2,900 $ 173,638
Textron Inc. 4,200 244,125
VF Corp. 9,300 499,875
---------------
1,912,563
---------------
Electrical Equipment (5.0%)
AMP Inc. 7,400 312,650
Emerson Electric Co. 9,100 650,650
General Electric Co. 23,200 1,307,900
Parker-Hannifin Corp. 13,800 500,250
Tektronix, Inc. 13,300 655,025
Texas Instruments, Inc. 4,800 642,600
---------------
4,069,075
---------------
Electrical & Electronics (1.0%)
Hewlett Packard Co. 2,500 186,250
Intel Corp. 6,800 430,525
Micron Technology Inc. 4,400 241,450
---------------
858,225
---------------
Financial Services (2.3%)
American General Corp. 4,400 148,500
Dean Witter Discover and Co. 11,400 535,800
Federal Home Loan Mortgage Corp. 4,000 275,000
Household International, Inc. 3,100 153,450
Merrill Lynch & Co., Inc. 3,500 183,750
Travelers, Inc. 12,700 555,625
---------------
1,852,125
---------------
Foods & Beverages (6.9%)
Anheuser-Busch Co. 10,500 597,188
Archer-Daniels-Midland Co. 16,200 301,725
Campbell Soup Co. 14,800 725,200
Coca-Cola Co. 20,900 1,332,375
ConAgra, Inc. 5,100 177,862
CPC International Inc. 11,100 685,425
Heinz (H.J.) Co. 3,000 133,125
Kroger Co. (The)+ 5,800 155,875
PepsiCo, Inc. 17,000 775,625
Ralston Purina Group 2,300 117,300
Sara Lee Corp. 23,800 678,300
---------------
5,680,000
---------------
Health Services (0.7%)
Baxter International, Inc. 4,700 170,963
Columbia/HCA Healthcare Corp. 10,000 432,500
---------------
603,463
---------------
Hotels & Restaurants (1.2%)
Marriott International Inc. 13,400 480,725
Studio Plus Hotels, Inc.+ 30,000 495,000
---------------
975,725
---------------
Household Products (0.9%)
Colgate-Palmolive Co. 1,800 131,625
Eastman Kodak Co. 4,800 291,000
Procter & Gamble Co. 4,200 301,875
---------------
724,500
---------------
Insurance (1.6%)
General Re Corp. 2,900 388,238
Humana Inc. 11,200 197,400
Penncorp Financial Group, Inc. 1,300 24,050
St. Paul Companies, Inc. 14,500 714,125
---------------
1,323,813
---------------
<PAGE>
Aetna GET Fund, Series B
Portfolio of Investments (continued)
Number of
Shares Market Value
-------------- ---------------
Media & Entertainment (2.1%)
Capital Cities/ABC, Inc. 2,500 $ 270,000
King World Productions, Inc.+ 2,400 97,200
Outboard Marine Corp. 11,200 219,800
Sinclair Broadcast Group, Inc. Class A+ 10,000 276,875
Viacom, Inc. Class B 9,600 445,200
Walt Disney Co. 6,800 378,250
---------------
1,687,325
---------------
Metals & Mining (1.4%)
Alcan Aluminum Ltd. 3,500 105,875
Aluminum Co. of America 6,000 300,750
Cyprus Amax Minerals Co. 4,200 119,700
Phelps Dodge Corp. 9,200 542,800
Placer Dome Group, Inc. 4,000 104,500
---------------
1,173,625
---------------
Oil & Gas (7.6%)
Atlantic Richfield Co. 4,200 460,950
Enron Corp. 3,000 105,375
Exxon Corp. 22,700 1,603,195
Halliburton Co. 6,300 225,225
Kerr-McGee Corp. 7,100 380,737
Mobil Corp. 11,200 1,075,200
Panhandle Eastern Corp. 12,600 307,125
Royal Dutch Petroleum Co. 11,800 1,438,125
Schlumberger, Ltd. 10,600 658,525
---------------
6,254,457
---------------
Paper & Containers (1.8%)
Avery Dennison Corp. 6,000 240,000
Champion International Corp. 3,400 177,225
Georgia-Pacific Corp. 2,100 182,175
International Paper Co. 9,400 806,050
Stone Container Corp.+ 4,900 104,125
---------------
1,509,575
---------------
Pharmaceuticals (6.1%)
Allergan, Inc. 1,300 35,262
Becton, Dickinson & Co. 10,800 629,100
Bristol-Myers Squibb Co. 6,000 408,750
Eli Lilly & Co. 2,700 211,950
Johnson & Johnson 16,000 1,082,000
Medtronic, Inc. 5,500 424,187
Merck & Co., Inc. 3,500 171,500
Mylan Laboratories 4,700 144,525
Pfizer, Inc. 5,600 517,300
Schering Plough 17,800 785,425
Smithkline Beecham Plc 11,800 533,950
Upjohn Company 2,500 94,687
---------------
5,038,636
---------------
Pollution Control (0.7%)
Browning-Ferris Industries, Inc. 8,400 303,450
WMX Technologies, Inc. 9,000 255,375
---------------
558,825
---------------
Printing & Publishing (1.5%)
Gannett Co., Inc. 10,600 575,050
Tribune Co. 7,500 460,313
Washington Post Co. Class B 700 182,700
---------------
1,218,063
---------------
Retail (3.3%)
Albertson's, Inc. 11,700 348,075
Circuit City Stores, Inc. 11,000 347,875
Dayton Hudson Corp. 1,300 93,275
Harcourt General, Inc. 3,300 140,250
Number of
Shares Market Value
-------------- ---------------
Office Depot, Inc. 9,000 $ 253,125
Sears, Roebuck & Co. 12,700 760,412
Staples, Inc. 6,700 193,881
Tandy Corp. 4,900 254,187
Wal-Mart Stores, Inc. 11,100 296,925
---------------
2,688,005
---------------
Telecommunications (1.7%)
Ameritech Corp. 19,600 862,400
Computer Associates International, Inc. 7,800 528,450
Highwaymaster Communications, Inc.+ 1,000 15,375
---------------
1,406,225
---------------
Transportation (0.5%)
AMR Corp. 3,800 283,575
Conrail, Inc. 2,600 144,625
---------------
428,200
---------------
Utilities--Electric (3.2%)
Consolidated Edison Co. of New York, Inc. 22,100 651,950
General Public Utilities Corp. 7,500 223,125
Northern States Power Co. (Minn.) 6,000 276,750
Peco Energy Co. 11,000 303,875
SCEcorp 35,300 604,513
Unicom Corp. 20,500 545,812
---------------
2,606,025
---------------
Utilities--Oil & Gas (0.2%)
Pacific Enterprises 5,600 137,200
---------------
Utilities--Telephone (3.3%)
AT&T Corp. 11,300 600,313
Bell Atlantic Corp. 11,100 621,600
BellSouth Corp. 8,600 546,100
GTE Corp. 5,400 184,275
Pacific Telesis Group 4,200 112,350
Sprint Corp. 20,000 672,500
---------------
2,737,138
---------------
Total Common Stocks $59,339,816
---------------
Preferred Stocks (0.4%)
Banks (0.4%)
Citicorp 15,245 308,711
---------------
Total Preferred Stocks $ 308,711
---------------
Total Common and Preferred Stocks (cost
$52,408,616) $59,648,527
---------------
U.S. GOVERNMENT OBLIGATIONS (23.1%) Principal
Amount Market Value
-------------- ---------------
U.S. Treasury Strips PO, Zero Coupon,
05/15/99 $8,750,000 $ 6,967,170
U.S. Treasury Strips PO, Zero Coupon,
08/15/99 8,750,000 6,864,524
U.S. Treasury Strips IO, Zero Coupon,
08/15/99 3,200,000 2,515,453
U.S. Treasury Strips IO, Zero Coupon,
05/15/99 3,200,000 2,552,764
---------------
U.S. Government Obligations (cost
$18,246,471) $18,899,911
---------------
CORPORATE OBLIGATIONS (0.1%)
Amoco Canada Petroleum Co. Ltd., Corp.
Note, 7.38%, 09/01/13 64,000 81,760
---------------
Total Corporate Obligations (cost
$83,207) $ 81,760
---------------
<PAGE>
SHORT-TERM INVESTMENTS (3.9%)
Principal
Amount Market Value
-------------- ---------------
TCI Communications, Inc., Comm. Paper,
6.68%, 07/03/95 $1,995,000 $ 1,995,000
U.S. Treasury Note, 4.25%, 07/31/95 1,000,000 998,672
Fleet Mortgage Group, Inc., Comm. Paper,
6.25%, 07/05/95 181,000 180,937
---------------
Total Short-Term Investments (cost
$3,174,754) $ 3,174,609
---------------
TOTAL INVESTMENTS (cost $73,913,048) $81,804,807
===============
Notes to Portfolio of Investments
+Non-income producing security
(a) The cost of investments for income tax purposes is identical. Unrealized
gains and losses, based on identified tax cost at June 30, 1995 are as
follows:
Unrealized gains $8,074,688
Unrealized losses (182,930)
-----------
Net unrealized gain $7,891,758
===========
Category percentages are based on net assets.
