<PAGE> 1
ADVANCE CAPITAL I, INC.
An investment company with five funds.
<TABLE>
<CAPTION>
TABLE OF CONTENTS
Page
<S> <C>
A LETTER TO OUR
SHAREHOLDERS............. 2
FINANCIAL HIGHLIGHTS....... 4
PORTFOLIO OF INVESTMENTS
EQUITY GROWTH FUND....... 9
BOND FUND................ 14
BALANCED FUND............ 17
LONG TERM INCOME FUND.... 27
RETIREMENT INCOME FUND... 30
STATEMENT OF ASSETS AND
LIABILITIES.............. 37
STATEMENT OF OPERATIONS.... 38
STATEMENT OF CHANGES IN NET
ASSETS............... 39
NOTES TO FINANCIAL
STATEMENTS............... 42
</TABLE>
SEMI-ANNUAL REPORT
JUNE 30, 1995
<PAGE> 2
Dear Shareholder:
What a difference a year makes! Last year we reported on the
worst six-month performance for the bond market in decades and a
stock market that had been uninteresting at best. Six months
ago we reported on 1994, a year about which the best that could
be said was that it was over. The pendulum has now swung
through the middle of its arc and we report on the best half
year performance in more than a decade.
Near the end of 1994 investors began to realize that inflation
was probably not headed for the sky. In fact, many began to
believe that the Federal Reserve Board's moves toward slowing
economic growth, thereby reducing future inflation, had a
reasonable chance of succeeding. Early in 1995, signs of
slowing began to appear in economic statistics and the mood
changed from anticipating dangerous overgrowth to the proverbial
soft landing. Bond investors have been ecstatic at the prospect
of lower inflation. Stock investors have been equally ecstatic
at the prospect of continued growth without recession. The
result has been dramatically positive results for the first half
of 1995.
For this six month period, the 5, 10 and 30-year U.S. Treasury
bonds returned 11, 15 and 19 percent, respectively. Slightly
more than 3.5 percent of these totals was the result of income,
the rest was a product of price increases. In the stock market,
the S&P 500 Index (dividends reinvested) returned 20.2 percent
for the half year. The most exciting stock sector has been high
tech. The NASDAQ 100 Index, dominated by stocks in this sector,
increased 33 percent in the first six months alone.
Amid this fervor, the Advance Capital I, Inc. Funds have
performed very well, out-performing most of the other funds in
comparable investment categories. The growth portfolios, the
Equity Growth Fund and the Balanced Fund, increased 19.7 percent
and 17.2 percent for the half year. This six-month return
ranked the Equity Growth Fund number 28 of 106 mid-cap funds
followed by Lipper Analytical Services, Inc. The Balanced
Fund's year-to-date performance ranks it number 10 of 215
balanced funds followed by Lipper. The Bond Fund, Retirement
Income and Long Term Income Fund enjoyed six-month total returns
(including interest) of 12.5 percent, 14.6 percent and 16.1
percent, respectively. These returns placed each of these
Funds' year-to-date performance in the top ten percent of the
1437 fixed income funds followed by Lipper.
With this excitement now history, we turn again to the most
relevant investment question facing all of us, "What lies
ahead?" We believe that the basics are in place for sustained
long term growth with moderate inflation. The principal reason
is the continuing evidence that Congress and the Administration
are "getting the message" from their constituencies that the
budget must be brought under control. Our national 30-year
pattern of
2
<PAGE> 3
spending more than we earn has been a major driver of
long term inflation. Bringing it under control can be the major
driver of sustained, moderate long term growth. The long term
investor can ask for nothing better.
Most important in this view is the fact that the various
"warring" parties in Washington are now arguing about how, not
if, to cut the budget. The Administration and the Republican
leadership are arguing about whether to bring the deficit to
zero in seven or ten years. This is the source of our optimism.
Since this is a political process, much will be argued,
progress will be gained and lost, and compromises will be made.
For the first time in decades, however, the arguments seem to be
seriously focused on how to solve the most serious long term
problem we face as a nation.
In the near term, interest rates have moderated and are not, in
our view, high enough to choke off continued economic growth.
At the same time, the Fed appears to have successfully wrung the
excessive growth out of the economy. Together, these two
factors set the stage for continued "steady as she goes"
economic activity. Absent surprises, this is our view of both
economic and investment performance for the next six to eighteen
months.
Robert J. Cappelli John C. Shoemaker
Robert J. Cappelli John C. Shoemaker
Portfolio Manager Portfolio Manager
August 9, 1995
3
<PAGE> 4
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
EQUITY GROWTH
-----------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------------------------------------
1995 1994 1993 1992 1991 1990
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $9.08 $9.46 $9.94 $9.83 $8.89 $9.79
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income (loss) . . . . . . . (0.01) (0.03) 0.12 0.10 0.14 0.19
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 1.80 (0.35) 0.07 0.11 1.78 (0.90)
--------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 1.79 (0.38) 0.19 0.21 1.92 (0.71)
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . 0.00 0.00 (0.12) (0.10) (0.14) (0.19)
Net realized gain on investments . . . . . 0.00 0.00 (0.55) 0.00 (0.84) 0.00
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . 0.00 0.00 (0.67) (0.10) (0.98) (0.19)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $10.87 $9.08 $9.46 $9.94 $9.83 $8.89
========= ========= ========= ========= ========= =========
Total Return . . . . . . . . . . . . . 19.71% -4.02% 2.13% 2.22% 20.94% -7.47%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $20,388 $12,634 $7,577 $7,094 $6,275 $4,310
Ratio of expenses to average net assets . . 1.19% 1.21% 1.16% 1.22% 1.38% 1.46%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . -0.23% -0.30% 1.27% 1.05% 1.37% 2.04%
Portfolio turnover rate . . . . . . . . . . 18.46% 18.05% 135.55% 96.05% 86.48% 81.13%
</TABLE>
See Notes To Financial Statements
4
<PAGE> 5
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
<TABLE>
<CAPTION>
BOND
-----------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------------------------------------
1995 1994 1993 1992 1991 1990
<S> --------- --------- --------- --------- --------- ---------
Selected Per-Share Data <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year . . . . $9.61 $10.82 $10.51 $10.52 $9.91 $9.90
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income (loss) . . . . . . . 0.35 0.71 0.72 0.70 0.74 0.77
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 0.83 (1.21) 0.45 0.01 0.62 0.02
--------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 1.18 (0.50) 1.17 0.71 1.36 0.79
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.35) (0.71) (0.72) (0.70) (0.74) (0.78)
Net realized gain on investments . . . . . 0.00 0.00 (0.14) (0.02) (0.01) 0.00
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.35) (0.71) (0.86) (0.72) (0.75) (0.78)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $10.44 $9.61 $10.82 $10.51 $10.52 $9.91
========= ========= ========= ========= ========= =========
Total Return . . . . . . . . . . . . . 12.51% -4.64% 11.48% 7.04% 14.26% 8.52%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $4,474 $3,999 $4,741 $5,793 $2,439 $1,488
Ratio of expenses to average net assets . . 0.58% 0.60% 0.61% 0.75% 0.85% 0.87%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . 7.07% 7.06% 6.57% 6.69% 7.36% 8.00%
Portfolio turnover rate . . . . . . . . . . 2.56% 21.92% 35.99% 38.22% 25.47% 7.41%
</TABLE>
See Notes To Financial Statements
5
<PAGE> 6
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
<TABLE>
<CAPTION>
BALANCED
-----------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------------------------------------
1995 1994 1993 1992 1991 1990
<S> --------- --------- --------- --------- --------- ---------
Selected Per-Share Data <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year . . . . $9.97 $10.58 $10.36 $10.38 $9.55 $10.10
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income (loss) . . . . . . . 0.17 0.32 0.29 0.33 0.39 0.44
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 1.53 (0.61) 0.22 (0.02) 1.39 (0.55)
--------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 1.70 (0.29) 0.51 0.31 1.78 (0.11)
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.17) (0.32) (0.29) (0.33) (0.39) (0.44)
Net realized gain on investments . . . . . 0.00 0.00 0.00 0.00 (0.56) 0.00
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.17) (0.32) (0.29) (0.33) (0.95) (0.44)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $11.50 $9.97 $10.58 $10.36 $10.38 $9.55
========= ========= ========= ========= ========= =========
Total Return . . . . . . . . . . . . . 17.17% -2.72% 4.97% 3.07% 18.32% -1.08%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $51,200 $44,221 $46,690 $42,440 $22,677 $14,128
Ratio of expenses to average net assets . . 1.10% 1.10% 1.08% 1.13% 1.38% 1.35%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . 3.18% 3.18% 2.77% 3.24% 3.75% 4.56%
Portfolio turnover rate . . . . . . . . . . 42.35% 34.97% 101.29% 42.39% 50.94% 46.72%
</TABLE>
See Notes To Financial Statements
6
<PAGE> 7
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
<TABLE>
<CAPTION>
LONG TERM INCOME
-----------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------
1995 1994 1993
<S> --------- --------- ---------
Selected Per-Share Data <C> <C> <C>
Net asset value, beginning of year . . . . $9.20 $10.60 $10.00
--------- --------- ---------
Income from investment operations
Net investment income (loss) . . . . . . . 0.36 0.72 0.74
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 1.09 (1.40) 0.77
--------- --------- ---------
Total from investment operations . . . . . 1.45 (0.68) 1.51
--------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.36) (0.72) (0.74)
Net realized gain on investments . . . . . 0.00 0.00 (0.17)
--------- --------- ---------
Total distributions . . . . . . . . . . . (0.36) (0.72) (0.91)
--------- --------- ---------
Net asset value, end of period . . . . . . . $10.29 $9.20 $10.60
========= ========= =========
Total Return . . . . . . . . . . . . . 16.05% -6.53% 14.43%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $1,384 $1,163 $1,079
Ratio of expenses to average net assets . . 0.63% 0.63% 0.64%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . 7.40% 7.37% 6.60%
Portfolio turnover rate . . . . . . . . . . 3.68% 15.39% 75.72%
</TABLE>
See Notes To Financial Statements
7
<PAGE> 8
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
<TABLE>
<CAPTION>
RETIREMENT INCOME
-----------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------
1995 1994 1993
<S> --------- --------- ---------
Selected Per-Share Data <C> <C> <C>
Net asset value, beginning of year . . . . $9.22 $10.54 $10.00
--------- --------- ---------
Income from investment operations
Net investment income (loss) . . . . . . . 0.38 0.76 0.82
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 0.94 (1.32) 0.61
--------- --------- ---------
Total from investment operations . . . . . 1.32 (0.56) 1.43
--------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.38) (0.76) (0.82)
Net realized gain on investments . . . . . 0.00 0.00 (0.07)
--------- --------- ---------
Total distributions . . . . . . . . . . . (0.38) (0.76) (0.89)
--------- --------- ---------
Net asset value, end of period . . . . . . . $10.16 $9.22 $10.54
========= ========= =========
Total Return . . . . . . . . . . . . . 14.58% -5.34% 13.92%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $125,621 $84,162 $47,343
Ratio of expenses to average net assets . . 0.86% 0.88% 0.88%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . 7.93% 7.89% 7.41%
Portfolio turnover rate . . . . . . . . . . 25.10% 12.27% 37.59%
</TABLE>
See Notes To Financial Statements
8
<PAGE> 9
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
-------------- -------- -----------
<S> <C> <C>
ADVERTISING - 0.3%
Heritage Media Corporation* 2,000 $ 57,750
AIR TRANSPORT - 1.1%
Air Express International Corp. 2,000 47,000
Atlantic Southeast Airlines, Inc. 2,500 75,312
Comair Holdings, Inc. 2,000 75,750
Fritz Companies, Inc.* 500 29,344
APPAREL - 0.5%
Kellwood Company 1,750 29,750
Nautica Enterprises, Inc.* 2,000 72,500
AUTO PARTS - 0.2%
Superior Industries Int'l, Inc. 1,400 43,575
AUTO & TRUCKS - 0.4%
Wabash National Corporation 2,500 77,813
BANK - 4.4%
Bank of New York Company, Inc. 3,800 153,425
Bank South Corporation 1,800 40,050
Bay Banks, Inc. 1,000 79,250
City National Corporation 5,000 56,875
Crestar Financial Corporation 1,000 49,000
First American Corporation 3,700 132,737
First Bank Systems, Inc. 3,600 147,600
Midlantic Corporation 2,900 116,000
Roosevelt Financial Group, Inc. 1,800 30,037
State Street Boston Corporation 2,300 84,812
BEVERAGE - 0.4%
Adolph Coors Company 1,700 27,837
Robert Mondavi Corporation* 3,000 52,500
BROADCASTING / CABLE TV - 3.0%
A.H. Belo Corporation 2,000 61,250
Clear Channel Communications* 2,750 177,031
Comcast Corporation 5,700 105,806
Viacom - Class A* 224 10,416
Viacom - Class B* 4,197 194,636
Westwood One, Inc.* 4,000 58,500
BUILDING MATERIALS - 0.7%
Lafarge Corporation 3,500 65,625
USG Corporation* 2,900 68,875
CHEMICAL - 2.7%
A. Schulman, Inc. 3,500 100,625
Airgas, Inc.* 5,300 142,437
Crompton & Knowles 3,600 50,850
Great Lakes Chemical Corporation 1,100 66,275
Lilly Industries, Inc. 4,000 47,000
Oil-Dri Corporation America 500 7,437
Sherwin-Williams Company 2,500 89,062
Wellman, Inc. 1,700 46,537
COMPUTER & PERIPHERALS - 6.8%
American Power Conversion* 3,000 68,625
Bay Networks, Inc.* 3,000 124,125
Cabletron Systems, Inc.* 2,000 106,500
Cisco Systems, Inc.* 2,400 121,350
Compaq Computer Corporation* 3,500 158,375
EMC Corporation* 4,300 104,275
Microchip Technology, Inc.* 2,450 89,119
MicroTouch Systems, Inc.* 1,000 20,563
Seagate Technology* 3,800 149,150
Silicon Graphics, Inc.* 3,000 119,625
Sun Microsystems, Inc.* 2,600 126,100
3COM Corporation, Inc.* 1,500 100,500
Xilinx, Inc.* 1,100 103,400
</TABLE>
* Securities are non - income producing
See Notes To Financial Statements
9
<PAGE> 10
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- ----------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES - 7.4%
Acclaim Entertainment, Inc.* 1,200 $ 22,125
Adobe Systems, Inc. 3,000 174,000
America Online, Inc.* 1,600 70,400
Broderbund Software, Inc.* 1,900 121,125
Ceridian Corporation* 3,500 129,063
Cerner Corporation* 700 42,875
HBO & Company 2,000 109,000
Informix Corporation* 1,000 25,375
Intuit, Inc.* 600 45,600
Lotus Development Corporation* 800 51,000
Microsoft Corporation* 2,500 225,937
Network General Corporation* 1,500 40,875
Oracle Systems Corporation* 5,000 193,125
Peoplesoft, Inc.* 1,000 54,250
Sybase, Inc.* 5,000 146,875
Synopsys, Inc.* 1,000 62,625
DIVERSIFIED - 2.0%
Alco Standard Corporation 2,000 159,750
Danaher Corporation 2,000 61,000
Itel Corporation* 2,500 97,500
Service Corp. International 2,600 82,225
DRUG - 2.9%
Amgen, Inc.* 2,800 225,225
Biogen, Inc.* 3,700 164,650
Forest Laboratories, Inc.* 2,100 93,188
Mylan Laboratories, Inc. 2,500 76,875
Roberts Pharmaceutical Corp.* 1,600 35,200
ELECTRICAL EQUIPMENT - 0.2%
Littlefuse, Inc.* 1,500 46,969
ELECTRONICS - 3.3%
General Instrument Corporation* 1,200 45,900
Harman International Industries 2,000 81,000
Lam Research Corporation* 2,300 147,200
Molex, Inc. 3,000 109,500
Sensormatic Electronics Corp. 1,000 35,500
Stratacom, Inc.* 1,000 48,750
Symbol Technologies, Inc.* 2,600 100,425
Vishay Intertechnology, Inc.* 3,150 113,794
ENVIRONMENTAL - 0.5%
Sanifill, Inc.* 1,000 31,375
Western Waste Industries* 3,000 60,375
FINANCIAL SERVICES - 7.4%
CUC International, Inc.* 4,500 126,000
Finova Group, Inc. 1,500 52,500
First Financial Management 2,400 205,200
First USA, Inc. 2,500 110,937
Foothill Group, Inc. 2,800 71,400
Franklin Resources, Inc. 1,600 71,200
Green Tree Financial Corporation 4,400 195,250
H & R Block, Inc. 1,300 53,300
Medaphis Corporation* 4,000 87,000
Mercury Finance Company 7,000 134,750
Mutual Risk Management, Ltd. 3,800 127,300
Paychex, Inc. 4,650 168,562
Pioneer Group, Inc. 1,000 26,875
SEI Corporation 1,200 27,000
United Asset Management Corp. 1,600 57,000
FOOD PROCESSING - 0.7%
Goodmark Foods, Inc. 4,000 64,000
Hormel Foods Corporation 3,400 88,825
FOREIGN TELECOMMUNICATIONS - 2.7%
Ericsson Telephone 10,000 200,000
Reuters Holdings PLC 3,900 195,487
Vodafone Group PLC 4,000 151,500
FURNITURE / HOME FURNISHINGS - 0.3%
Shaw Industries, Inc. 3,000 51,000
</TABLE>
* Securities are non - income producing
See Notes to Financial Statements
10
<PAGE> 11
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- -------- -----------
<S> <C> <C>
GROCERY - 0.4%
Safeway, Inc.* 2,200 $ 82,225
HOMEBUILDING - 0.7%
Lennar Corporation 2,100 39,375
Rouse Company 4,900 96,162
HOTEL / GAMING - 1.9%
G-Tech Holdings Corporation* 1,500 43,875
Hospitality Franchise Systems* 3,500 121,187
La Quinta Inns, Inc. 2,500 67,500
Marcus Corporation 1,300 39,325
Mirage Resorts, Inc.* 2,500 76,563
National Gaming Corporation* 100 862
Promus Companies, Inc.* 800 31,200
HOUSEHOLD PRODUCTS - 0.9%
Amway Asia Pacific Ltd. 2,500 90,625
Lancaster Colony Corporation 2,500 89,375
INDUSTRIAL PRODUCTS - 0.1%
Watts Industries, Inc. 1,000 25,062
INDUSTRIAL SERVICES - 1.3%
Equifax, Inc. 3,100 103,462
Kelly Services, Inc. 2,300 59,225
Manpower, Inc. 2,400 61,200
Robert Half International, Inc.* 2,000 51,250
INSURANCE - 3.8%
AMBAC, Inc. 2,600 104,325
Equitable of Iowa Companies 2,600 85,475
Humana, Inc.* 3,100 55,025
MGIC Investment Corporation 3,000 140,625
Mid Atlantic Medical Services, Inc.* 3,600 66,600
Oxford Health Plans, Inc.* 1,600 75,600
Progressive Corporation of Ohio 2,800 107,450
United American Healthcare* 3,800 66,500
Value Health, Inc.* 1,100 35,475
Zurich Reinsurance Centre Hold.* 1,500 42,938
MACHINERY - 1.8%
AGCO Corporation 2,500 93,750
Cascade Corporation 2,200 35,200
Greenfield Industries, Inc. 2,500 72,500
Parker-Hannifin Corporation 2,500 90,625
Tecumseh Products Company 700 30,625
TriMas Corporation 1,500 34,500
MANUFACTURED HOUSING - 0.6%
Clayton Homes, Inc. 750 12,281
Oakwood Homes Corporation 4,500 115,312
MEDICAL SERVICES - 4.2%
Health Care & Retirement Corp.* 3,700 108,225
Health Management Associates* 3,300 96,525
Horizon Healthcare Corporation* 2,700 48,262
Omnicare, Inc. 2,000 54,250
OrNda Healthcorp* 1,500 25,688
United HealthCare Corporation 4,900 202,738
Universal Health Services, Inc.* 1,900 55,100
U.S. Healthcare, Inc. 3,050 93,406
Vencor, Inc.* 5,400 170,100
MEDICAL SUPPLIES - 2.3%
Amsco International, Inc.* 4,500 62,438
Cardinal Health, Inc. 3,250 153,563
Cordis Corporation* 2,200 146,850
Owens & Minor, Inc. 1,350 16,875
Sybron Corporation* 2,000 79,750
METAL FABRICATING - 0.4%
Kennametal, Inc. 2,500 88,125
</TABLE>
* Securities are non - income producing
See Notes To Financial Statements
11
<PAGE> 12
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- ----------
<S> <C> <C>
METALS & MINING - 0.5%
Magma Copper* 3,000 $ 48,750
Olin Corporation 1,000 51,500
NATURAL GAS - 0.4%
Sonat, Inc. 3,000 91,500
NEWSPAPER - 0.1%
Central Newspapers, Inc. 1,000 29,625
OFFICE EQUIPMENT & SUPPLIES - 1.5%
Danka Business Systems PLC 2,000 48,375
Office Depot, Inc.* 6,150 172,969
Reynolds & Reynolds Company 2,700 79,650
OILFIELD SERVICES - 0.8%
BJ Services Company/Warrants* 1,160 4,930
Pride Petroleum Services, Inc.* 4,000 30,000
Smith International, Inc.* 4,300 72,025
Triton Energy Corporation* 1,000 46,375
PACKAGING & CONTAINER- 0.4%
Sealed Air Corporation* 1,700 74,800
PAPER & FOREST PRODUCTS - 0.8%
Louisiana-Pacific Corporation 1,700 44,413
Willamette Industries, Inc. 2,300 127,650
PETROLEUM - 1.6%
Apache Corporation 3,000 82,125
Devon Energy Corporation 2,500 53,750
Noble Affiliates, Inc. 3,900 99,450
Tosco Corporation 1,500 47,813
United Meridian Corporation* 3,200 49,600
PRECISION INSTRUMENT - 1.3%
KLA Instruments Corporation* 800 61,800
Teleflex, Inc. 2,500 107,500
Tektronix, Inc. 2,000 98,500
RAILROAD - 0.8%
Kansas City Southern Ind., Inc. 2,300 85,675
Wisconsin Central Transportation* 1,500 73,500
REAL ESTATE INVESTMENT TRUST - 0.5%
National Health Investors, Inc. 1,700 46,325
Security Capital Pacific Trust 3,000 52,125
RECREATION - 2.6%
Callaway Golf Company 4,400 66,000
Carmike Cinemas, Inc.* 6,000 145,500
Carnival Corporation 4,500 104,625
Electronic Arts, Inc.* 1,200 32,550
Gaylord Entertainment Company 2,415 60,979
Harley-Davidson, Inc. 3,000 72,750
Sturm, Ruger & Company, Inc. 1,500 48,563
RESTAURANT - 1.3%
Apple South, Inc. 1,950 38,025
Applebee's International, Inc. 2,200 56,650
Brinker International, Inc.* 3,350 57,788
Outback Steakhouse, Inc.* 3,750 108,281
RETAIL STORE - 5.1%
AutoZone, Inc.* 1,800 45,225
Bed Bath & Beyond, Inc.* 3,500 84,875
Circuit City Stores, Inc. 2,800 88,550
Dollar General Corporation 6,093 192,691
Fingerhut Companies, Inc. 2,000 31,250
</TABLE>
* Securities are non - income producing
See Notes to Financial Statement
12
<PAGE> 13
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- -------- -----------
<S> <C> <C>
RETAIL STORE - 5.1% (Continued)
Gap, Inc. 500 $ 17,438
General Nutrition Companies* 2,000 70,250
Heilig-Meyers Company 1,300 32,988
Lands' End, Inc.* 2,200 35,750
Lowe's Companies, Inc. 2,400 71,700
Men's Wearhouse, Inc.* 1,500 41,250
Michaels Stores, Inc.* 3,300 70,125
Pep Boys-Manny, Moe & Jack 2,000 53,500
Starbucks Corporation* 2,000 71,250
Viking Office Products, Inc.* 3,200 117,200
Williams-Sonoma, Inc.* 1,000 22,000
SECURITIES BROKERAGE - 1.1%
Charles Schwab Corporation 4,400 190,850
Investment Technology Group* 1,500 11,250
Raymond James Financial, Inc. 1,000 19,375
SEMICONDUCTOR - 4.1%
Applied Materials, Inc.* 900 77,963
Atmel Corporation* 1,700 94,138
Integrated Device Technology* 2,800 129,500
International Rectifier Corp.* 1,800 58,500
Linear Technology Corporation 2,700 178,200
LSI Logic Corporation* 2,000 78,250
Maxim Intergrated Products, Inc.* 4,500 229,500
SHOE - 0.3%
Wolverine World Wide, Inc. 3,000 62,250
STEEL - 0.5%
Worthington Industries 5,000 102,188
TELECOMMUNICATIONS EQUIPMENT - 2.9%
Andrew Corporation* 2,625 151,922
Cidco, Inc.* 1,000 31,375
DSC Communications Corp.* 2,200 102,300
Glenayre Technologies, Inc.* 1,800 91,800
Tellabs, Inc.* 2,200 105,875
U.S. Robotics, Inc.* 1,000 109,000
TELECOMMUNICATIONS SERVICE - 2.1%
ALC Communications* 1,800 81,225
Cellular Commun. of Puerto Rico* 1,500 45,938
Centennial Cellular Corporation* 1,800 30,150
LCI International, Inc.* 3,200 98,000
LIN Broadcasting Corporation* 500 63,250
Paging Network, Inc.* 2,500 85,625
United States Cellular Corporation* 1,000 30,250
TEXTILE - 0.4%
Unifi, Inc. 3,000 72,000
THRIFT - 0.3%
JSB Financial Corporation 2,000 57,750
TOYS - 0.4%
Mattel, Inc. 3,300 86,625
TRUCKING & TRANSPORT LEASING - 0.7%
American Freightways Corp.* 1,400 28,700
M.S. Carriers, Inc.* 2,000 38,000
Werner Enterprise, Inc. 4,000 80,000
-----------
TOTAL COMMON STOCK - 96.8% 19,744,124
(Cost $16,633,138)
CASH AND OTHER ASSETS,
LESS LIABILITIES - 3.2% 643,668
-----------
TOTAL NET ASSETS - 100% $20,387,792
===========
</TABLE>
* Securities are non - income producing
See Notes To Financial Statements
13
<PAGE> 14
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------- ------ ------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
BANK - 10.1%
Banc One Corporation A+ 8.740 09/15/03 $ 100,000 $ 111,469
Harris Bankcorp, Inc. A+ 9.375 06/01/01 75,000 84,820
Morgan, J.P. & Company AA 8.500 08/15/03 100,000 110,219
NBD Bancorp A+ 8.100 03/01/02 100,000 107,281
Security Pacific Corporation A- 9.750 05/15/99 40,000 44,134
CHEMICAL - 2.5%
DuPont, E.I. de Nemours & Co. AA- 6.000 12/01/01 115,000 111,334
COMPUTER & PERIPHERALS - 1.7%
International Business Machines Corp. A 7.250 11/01/02 75,000 77,414
ELECTRIC & GAS UTILITIES - 13.0%
Baltimore Gas & Electric Company A+ 6.125 07/01/03 150,000 142,785
Florida Power Corporation AA- 6.875 02/01/08 70,000 70,654
Kentucky Utilities Company AA- 7.375 12/01/02 75,000 76,353
Northern States Power Co. Minn. AA- 7.375 03/01/02 40,000 40,593
Ontario Hydro AA- 7.450 03/31/13 150,000 152,616
Public Service Co. of Oklahoma A+ 7.250 01/01/99 50,000 50,501
Public Service Electric & Gas A- 7.000 09/01/24 50,000 46,344
FINANCIAL SERVICES - 7.6%
American Express Credit Corp. A+ 7.375 02/01/99 125,000 128,643
BHP Finance USA Ltd. A 7.875 12/01/02 100,000 105,869
General Electric Capital Corporation AAA 7.750 03/15/02 100,000 107,684
FOREIGN GOVERNMENT - 6.1%
Province of Ontario AA- 7.625 06/22/04 100,000 105,719
Province of Quebec A+ 8.800 04/15/03 150,000 166,641
GOVERNMENTAL AGENCY - 1.1%
Tennesse Valley Authority Not R 6.125 07/15/03 50,000 47,938
INSURANCE - 8.2%
Aetna Life & Casualty Company A+ 6.375 08/15/03 110,000 105,188
Allstate Corporation A 7.500 06/15/13 100,000 99,438
CIGNA Corporation BBB+ 8.250 01/01/07 100,000 105,593
Travelers, Inc. A+ 7.625 01/15/97 57,000 57,890
</TABLE>
See Notes To Financial Statements
14
<PAGE> 15
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------ ----- ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
MACHINERY - 5.2%
Caterpillar, Inc. A- 9.000 04/15/06 $ 100,000 $ 115,293
Deere & Company A 8.950 06/15/19 100,000 115,353
METALS & MINING - 2.7%
Alcan Aluminum Ltd. A- 5.875 04/01/00 125,000 121,794
NEWSPAPER - 1.4%
Knight-Ridder, Inc. AA- 9.875 04/15/09 50,000 63,013
OFFICE EQUIPMENT & SUPPLIES - 0.8%
Xerox Corporation A 9.750 03/15/00 30,000 33,759
PETROLEUM - 5.2%
BP America, Inc. AA- 8.750 02/01/03 75,000 84,171
Kerr-McGee Corporation A- 7.000 11/01/11 150,000 147,037
RAILROAD - 2.5%
Missouri Pacific Railroad Co. AA+ 9.400 12/15/00 100,000 113,730
RETAIL STORE - 6.6%
Sears, Roebuck & Company BBB 9.250 08/01/97 200,000 210,937
Wal-Mart Stores, Inc. AA 8.625 04/01/01 75,000 82,641
SECURITIES BROKERAGE - 7.1%
Lehman Brothers Holdings, Inc. A 8.875 03/01/02 150,000 161,438
Merrill Lynch & Company, Inc. A+ 8.230 04/30/02 150,000 157,422
SEMICONDUCTOR - 3.2%
Texas Instruments, Inc. A 8.750 04/01/07 125,000 142,032
TELECOMMUNICATIONS SERVICE - 6.7%
AT&T Corporation AA 7.125 01/15/02 100,000 102,906
GTE Southwest, Inc. A+ 5.820 12/01/99 100,000 97,446
Pacific Bell Telephone Co. AA- 7.000 07/15/04 100,000 101,594
</TABLE>
See Notes To Financial Statements
15
<PAGE> 16
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Income Rating Coupon Maturity Amount Value
------------------------ ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
TOBACCO - 3.5%
Philip Morris Companies, Inc. A 9.250 12/01/97 $ 50,000 $ 53,078
Philip Morris Companies, Inc. A 7.500 01/15/02 100,000 103,064
U.S. GOVERNMENT - 1.7%
U. S. Treasury 5.750 08/15/03 20,000 19,394
U. S. Treasury 7.500 02/15/05 50,000 54,461
----------
TOTAL FIXED-INCOME SECURITIES - 96.9%
(Cost $4,129,542) 4,337,683
CASH AND OTHER ASSETS, LESS LIABILITIES - 3.1% 136,790
----------
TOTAL NET ASSETS - 100% $4,474,473
==========
</TABLE>
See Notes To Financial Statements
16
<PAGE> 17
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
ADVERTISING - 0.1%
Heritage Media Corporation* 1,000 $ 28,875
AEROSPACE / DEFENSE - 1.2%
Boeing Company 1,700 106,462
General Motors Corp. - Class H 500 19,750
Loral Corporation 2,500 129,375
McDonnell Douglas Corporation 2,900 222,575
Raytheon Company 1,600 124,200
AIR TRANSPORT - 0.3%
Air Express International Corp. 700 16,450
Atlantic Southeast Airlines, Inc. 1,000 30,125
Comair Holdings, Inc. 700 26,512
Pittston Services Group 3,000 72,000
APPAREL - 0.0%
Kellwood Company 1,400 23,800
AUTO PARTS - 0.2%
Dana Corporation 1,600 45,800
Strattec Security Corporation* 240 2,940
Superior Industries Int'l, Inc. 1,400 43,575
AUTO & TRUCK - 0.5%
Ford Motor Company 3,500 104,125
General Motors Corporation 2,400 112,500
Wabash National Corporation 1,000 31,125
BANK - 5.1%
BankAmerica Corporation 1,000 52,625
Bank of Boston Corporation 1,000 37,500
Bank of New York Company, Inc. 2,400 96,900
Barnett Banks, Inc. 5,200 266,500
Bay Banks, Inc. 700 55,475
Chase Manhattan Corporation 1,000 47,000
Chemical Banking Corporation 3,800 179,550
City National Corporation 1,100 12,512
First American Corporation 2,200 78,925
First Bank Systems, Inc. 2,300 94,300
First Chicago Corporation 3,500 209,562
First Interstate Bancorp 1,400 112,350
First Tennessee National Corp. 2,900 134,488
First Union Corporation 5,800 262,450
Integra Finanacial Corporation 1,000 48,625
KeyCorp 4,000 125,500
Mellon Bank Corporation 2,700 112,388
Mercantile Bancorporation, Inc. 1,050 47,119
Midlantic Corporation 2,500 100,000
Morgan, J.P. & Company 2,000 140,250
NationsBank Corporation 4,000 214,500
PNC Bank Corporation 4,000 105,500
State Street Boston Corporation 1,200 44,250
BEVERAGE - 0.7%
Adolph Coors Company 800 13,100
Anheuser-Busch Companies, Inc. 3,700 210,438
Coca-Cola Company 500 31,875
PepsiCo, Inc. 1,500 68,250
Robert Mondavi Corporation* 1,500 26,250
BROADCASTING / CABLE TV - 1.1%
A.H. Belo Corporation 1,400 42,875
Capital Cities/ABC, Inc. 2,500 262,188
Clear Channel Communications* 800 51,500
Comcast Corporation 3,000 55,688
Viacom - Class A* 320 14,880
Viacom - Class B* 2,424 112,413
Westwood One, Inc.* 700 10,238
BUILDING MATERIALS - 0.1%
Armstrong World Industries, Inc. 500 25,062
Lafarge Corporation 1,000 18,750
USG Corporation* 1,100 26,125
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
17
<PAGE> 18
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
CHEMICAL - 2.9%
A. Schulman, Inc. 2,000 $ 57,500
Airgas, Inc.* 3,000 80,625
B.F. Goodrich Company 1,000 53,625
Crompton & Knowles 1,500 21,188
duPont, E.I. de Nemours & Co. 3,500 241,062
Eastman Chemical Company 250 14,875
Grace, W.R. & Company 2,500 153,437
Great Lakes Chemical Corporation 500 30,125
Lilly Industries, Inc. 1,500 17,625
Minnesota Mining & Manufacturing 4,000 229,000
Monsanto Company 3,500 315,437
Oil-Dri Corporation America 500 7,437
Olin Corporation 700 36,050
Rohm & Haas Company 1,000 54,875
Sherwin-Williams Company 2,000 71,250
Union Carbide Corporation 1,100 36,712
Wellman, Inc. 1,000 27,375
Witco Corporation 1,700 54,825
COMPUTER & PERIPHERALS - 1.6%
American Power Conversion Corp.* 2,000 45,750
Bay Networks, Inc.* 2,800 115,850
Cabletron Systems, Inc.* 1,500 79,875
Cisco Systems, Inc.* 2,000 101,125
Compaq Computer Corporation* 1,500 67,875
EMC Corporation* 3,000 72,750
Microchip Technology, Inc.* 1,000 36,375
MicroTouch Systems, Inc.* 700 14,394
Seagate Technology* 2,000 78,500
Silicon Graphics, Inc.* 1,500 59,813
Sun Microsystems, Inc.* 800 38,800
3COM Corporation, Inc.* 800 53,600
Xilinx, Inc.* 700 65,800
COMPUTER SOFTWARE & SERVICES - 1.8%
Adobe Systems, Inc. 1,200 69,600
America Online, Inc.* 1,000 44,000
Automatic Data Processing, Inc. 2,000 125,750
Brandon Systems Corporation 700 14,962
Broderbund Software, Inc.* 1,400 89,250
Ceridian Corporation* 2,000 73,750
HBO & Company 1,000 54,500
Informix Corporation* 1,000 25,375
Lotus Development Corporation* 800 51,000
Microsoft Corporation* 1,400 126,525
Oracle Systems Corporation* 2,550 98,494
Sybase, Inc.* 2,400 70,500
Synopsys, Inc.* 1,000 62,625
DIVERSIFIED - 1.5%
Alco Standard Corporation 1,400 111,825
AlliedSignal, Inc. 5,100 226,950
Danaher Corporation 1,000 30,500
Itel Corporation* 800 31,200
Premark International, Inc. 1,000 51,875
Service Corp. International 2,100 66,413
Textron, Inc. 1,500 87,188
TRW, Inc. 1,000 79,875
United Technologies Corporation 1,100 85,938
DRUG - 3.2%
American Home Products Corp. 1,000 77,375
Amgen, Inc.* 1,600 128,700
Biogen, Inc.* 2,400 106,800
Bristol-Myers Squibb Company 6,200 422,375
Forest Laboratories, Inc.* 1,100 48,813
Merck & Company, Inc. 8,000 392,000
Mylan Laboratories, Inc. 800 24,600
Pfizer, Inc. 4,000 184,250
Roberts Pharmaceutical Corp.* 1,000 22,000
Schering-Plough Corporation 2,000 88,250
Warner-Lambert Company 1,900 164,112
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
18
<PAGE> 19
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
DRUGSTORE - 0.1%
Rite Aid Corporation 2,000 $ 51,250
ELECTRIC & GAS UTILITIES - 3.7%
Baltimore Gas & Electric Company 5,700 142,500
CMS Energy Corporation 2,300 56,350
Consolidated Edison Co. of N.Y. 1,900 56,050
Duke Power Company 3,400 141,100
Entergy Corporation 4,000 96,500
Florida Progress Corporation 5,500 171,875
General Public Utilities Corp. 3,600 107,100
Hawaiian Electric Industries, Inc. 2,300 83,662
National Fuel Gas Company 500 14,313
New England Electric System 1,700 58,650
Niagra Mohawk Power Corporation 2,500 36,563
NICOR, Inc. 700 18,812
Northern States Power Company 2,500 115,313
PacifiCorp 8,400 157,500
Public Service Enterprise Group 1,900 52,725
Public Service of Colorado 4,700 152,750
SCEcorp 6,500 111,313
TECO Energy, Inc. 7,700 169,400
Unicom Corporation* 3,500 93,188
ELECTRICAL EQUIPMENT - 1.4%
Emerson Electric Company 2,500 178,750
General Electric Company 8,200 462,275
Hubbell, Inc. 1,000 56,500
Littlefuse, Inc.* 1,000 31,312
ELECTRONICS - 0.5%
General Instrument Corporation* 500 19,125
Harman International Industries 1,000 40,500
Lam Research Corporation* 1,300 83,200
Molex, Inc. 1,500 54,750
Symbol Technologies, Inc.* 2,000 77,250
ENVIRONMENTAL - 0.5%
Browning-Ferris Industries, Inc. 3,000 108,375
Western Waste Industries* 1,200 24,150
WMX Technologies, Inc. 4,500 127,687
FINANCIAL SERVICES - 2.6%
American Express Company 5,000 175,625
Countrywide Credit Industries, Inc. 4,000 84,000
CUC International, Inc.* 2,850 79,800
Dean Witter, Discover & Company 3,500 164,500
Finova Group, Inc. 1,000 35,000
First Financial Management 1,100 94,050
First USA, Inc. 1,400 62,125
Franklin Resources, Inc. 1,000 44,500
Green Tree Financial Corporation 2,000 88,750
H & R Block, Inc. 1,300 53,300
Household International, Inc. 1,000 49,500
Medaphis Corporation* 1,400 30,450
Mercury Finance Company 4,000 77,000
Mutual Risk Management, Ltd. 2,500 83,750
Paychex, Inc. 1,500 54,375
Pioneer Group, Inc. 1,000 26,875
SEI Corporation 800 18,000
Travelers, Inc. 1,800 78,750
United Asset Management Corp. 1,000 35,625
FOOD PROCESSING - 0.7%
Goodmark Foods, Inc. 5,200 83,200
Hormel Foods Corporation 1,000 26,125
Kellogg Company 1,500 107,062
Sara Lee Corporation 4,500 128,250
FOREIGN TELECOMMUNICATIONS - 0.6%
Ericsson Telephone 6,400 128,000
Reuters Holdings PLC 2,400 120,300
Vodafone Group PLC 2,100 79,538
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
19
<PAGE> 20
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
FURNITURE / HOME FURNISHINGS - 0.0%
Shaw Industries, Inc. 1,500 $ 25,500
GROCERY - 0.1%
Safeway, Inc.* 1,600 59,800
HOMEBUILDING - 0.3%
Lennar Corporation 1,700 31,875
Rouse Company 7,000 137,375
HOTEL / GAMING - 0.4%
G-Tech Holdings Corporation* 1,000 29,250
Hospitality Franchise Systems* 1,000 34,625
La Quinta Inns, Inc. 1,000 27,000
Marcus Corporation 1,300 39,325
Mirage Resorts, Inc.* 1,000 30,625
National Gaming Corporation* 100 862
Promus Companies, Inc.* 1,100 42,900
HOUSEHOLD PRODUCTS - 1.3%
Amway Asia Pacific Ltd. 1,000 36,250
Clorox Company 1,900 123,975
Colgate-Palmolive Company 3,100 226,688
Kimberly-Clark Corporation 2,900 173,638
Lancaster Colony Corporation 1,000 35,750
Proctor & Gamble Company 1,200 86,250
INDUSTRIAL PRODUCTS - 0.0%
Watts Industries, Inc. 1,000 25,062
INDUSTRIAL SERVICES - 0.6%
Equifax, Inc. 2,300 76,763
Kelly Services, Inc. 700 18,025
Manpower, Inc. 1,500 38,250
PHH Corporation 3,100 137,950
Sylvan Learning Systems* 1,300 27,950
INSURANCE - 1.9%
AFLAC, Inc. 1,600 70,000
AMBAC, Inc. 1,300 52,163
American International Group, Inc. 2,750 313,500
Aon Corporation 3,500 130,375
Equitable of Iowa Companies 2,100 69,038
Humana, Inc.* 1,500 26,625
MBIA, Inc. 1,500 99,750
MGIC Investment Corporation 1,500 70,313
Oxford Health Plans, Inc.* 800 37,800
Progressive Corporation of Ohio 1,000 38,375
United American Healthcare* 1,500 26,250
Zurich Reinsurance Centre Hold.* 1,000 28,625
MACHINERY - 1.6%
AGCO Corporation 1,000 37,500
Briggs & Stratton Corporation 1,200 41,400
Caterpillar, Inc. 1,800 115,650
Cummins Engine Company, Inc. 2,100 91,613
Deere & Company 1,400 119,875
Dover Corporation 2,600 189,150
GATX Corporation 700 32,988
Greenfield Industries, Inc. 900 26,100
Parker-Hannifin Corporation 1,050 38,063
TriMas Corporation 1,500 34,500
Trinova Corporation 2,100 73,500
MANUFACTURED HOUSING - 0.2%
Oakwood Homes Corporation 3,000 76,875
MARITIME - 0.0%
American President Co's., Ltd. 1,000 23,750
MEDICAL SERVICES - 1.1%
Health Care & Retirement Corp.* 3,900 114,075
Health Management Associates* 1,650 48,263
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
20
<PAGE> 21
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
MEDICAL SERVICES - 1.1% (Continued)
Horizon Healthcare Corporation* 2,000 $ 35,750
Mid Atlantic Medical Services* 1,300 24,050
Omnicare, Inc. 1,400 37,975
OrNda Healthcorp* 1,000 17,125
U.S. Healthcare, Inc. 1,500 45,937
United HealthCare Corporation 2,300 95,162
Universal Health Services, Inc.* 1,100 31,900
Vencor, Inc.* 3,100 97,650
MEDICAL SUPPLIES - 1.3%
Abbott Laboratories 3,600 145,800
Amsco International, Inc.* 1,500 20,812
Baxter International, Inc. 2,000 72,500
Cardinal Health, Inc. 1,200 56,700
Cordis Corporation* 1,400 93,450
Johnson & Johnson 700 47,338
Medtronic, Inc. 1,400 107,975
McKesson Corporation 2,000 93,500
Sybron Corporation* 1,000 39,875
METAL FABRICATING - 0.1%
Trinity Industries, Inc. 800 26,600
METALS & MINING - 0.7%
Aluminum Company of America 4,000 200,500
Inco Limited 2,000 56,500
Kennametal, Inc. 1,000 35,250
Magma Copper* 1,000 16,250
Placer Dome, Inc. 2,500 65,312
NATURAL GAS - 0.8%
El Paso Natural Gas Company 1,100 31,350
Enron Corporation 5,400 189,675
Panhandle Eastern Corporation 5,300 129,188
Sonat, Inc. 1,800 54,900
NEWSPAPER - 0.3%
Central Newspapers, Inc. 1,000 29,625
Gannett Company, Inc. 1,900 103,075
OFFICE EQUIPMENT & SUPPLIES - 0.7%
Danka Business Systems PLC 1,000 24,188
Office Depot, Inc.* 2,900 81,562
Reynolds & Reynolds Company 2,800 82,600
Xerox Corporation 1,500 175,875
OILFIELD SERVICES - 0.6%
BJ Services Company/Warrants* 1,200 5,100
Halliburton Company 3,500 125,125
Pride Petroleum Services, Inc.* 2,800 21,000
Schlumberger, Ltd. 1,000 62,125
Smith International, Inc.* 2,300 38,525
Triton Energy Corporation* 700 32,462
PACKAGING & CONTAINER - 0.1%
Sealed Air Corporation* 1,000 44,000
PAPER & FOREST PRODUCTS - 0.9%
International Paper Company 4,000 343,000
Louisiana-Pacific Corporation 1,000 26,125
Weyerhaeuser Company 1,000 47,125
Willamette Industries, Inc. 800 44,400
PETROLEUM - 4.5%
Amerada Hess Corporation 600 29,325
Amoco Corporation 2,400 159,900
Apache Corporation 1,800 49,275
Ashland Oil, Inc. 1,800 63,225
Atlantic Richfield Company 1,000 109,750
British Petroleum Co. PLC 1,000 85,625
Devon Energy Corporation 1,500 32,250
Exxon Corporation 6,300 444,937
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
21
<PAGE> 22
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
PETROLEUM - 4.5% (Continued)
Mobil Corporation 5,000 $ 480,625
Noble Affiliates, Inc. 2,800 71,400
Royal Dutch/Shell Transport Group 3,400 414,375
Sun Company, Inc. 6,000 164,250
Tosco Corporation 1,000 31,875
Union Texas Petroleum Holdings 6,700 141,538
United Meridian Corporation* 1,000 15,500
PRECISION EQUIPMENT - 0.5%
Eastman Kodak Company 2,900 175,812
Teleflex, Inc. 1,000 43,000
Tektronix, Inc. 1,000 49,250
PUBLISHING - 0.2%
McGraw-Hill, Inc. 1,000 75,875
Reader's Digest Association, Inc. 1,000 44,125
RAILROAD - 0.5%
Conrail, Inc. 500 27,813
Kansas City Southern Ind., Inc. 2,000 74,500
Union Pacific Corporation 2,000 110,750
Wisconsin Central Transportation* 1,000 49,000
REAL ESTATE INVESTMENT TRUST - 0.4%
Meditrust Corporation 2,500 85,312
National Health Investors, Inc. 1,600 43,600
Security Capital Pacific Trust 2,000 34,750
Weingarten Realty Investors 1,200 45,300
RECREATION - 0.9%
Brunswick Corporation 2,000 34,000
Callaway Golf Company 2,400 36,000
Carmike Cinemas, Inc. * 3,000 72,750
Carnival Corporation 2,000 46,500
Electronic Arts, Inc.* 1,700 46,113
Gaylord Entertainment Company 1,050 26,512
Harley-Davidson, Inc. 2,000 48,500
Time Warner, Inc. 1,200 49,350
Walt Disney Company 2,200 122,375
RESTAURANT - 0.6%
Apple South, Inc. 1,500 29,250
McDonald's Corporation 6,000 234,750
Outback Steakhouse, Inc.* 2,250 64,968
RETAIL STORE - 2.2%
AutoZone, Inc.* 1,000 25,125
Bed Bath & Beyond, Inc.* 2,700 65,475
Circuit City Stores, Inc. 2,200 69,575
Dollar General Corporation 4,000 126,500
Fingerhut Companies, Inc. 1,000 15,625
Gap, Inc. 500 17,437
General Nutrition Companies* 600 21,075
Heilig-Meyers Company 1,000 25,375
Lowe's Companies, Inc. 1,400 41,825
Men's Wearhouse, Inc.* 1,000 27,500
Michaels Stores, Inc.* 1,000 21,250
Penney, J.C. Company 1,100 52,800
Pep Boys-Manny, Moe & Jack 1,000 26,750
Sears, Roebuck & Company 3,900 233,512
Starbucks Corporation* 2,000 71,250
Tandy Corporation 4,100 212,687
Viking Office Products, Inc.* 2,200 80,575
SECURITIES BROKERAGE - 0.4%
Bear Stearns Companies, Inc. 1,433 30,635
Charles Schwab Corporation 2,100 91,087
Investment Technology Group* 1,000 7,500
Merrill Lynch & Company, Inc. 1,200 63,000
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
22
<PAGE> 23
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
------------- ------- -----------
<S> <C> <C>
SEMICONDUCTOR - 1.5%
Applied Materials, Inc.* 1,300 $ 112,613
Atmel Corporation* 1,000 55,375
Intel Corporation 2,400 151,950
Integrated Device Technology* 1,400 64,750
International Rectifier Corp.* 1,000 32,500
Linear Technology Corporation 1,100 72,600
Maxim Intergrated Products, Inc.* 1,700 86,700
National Semiconductor Corp.* 2,000 55,500
Texas Instruments, Inc. 1,200 160,650
SHOE - 0.0%
Wolverine World Wide, Inc. 1,050 21,787
STEEL - 0.3%
Nucor Corporation 1,000 53,500
Worthington Industries 4,000 81,750
TELECOMMUNICATIONS EQUIPMENT - 0.6%
Andrew Corporation* 1,050 60,769
Cidco, Inc.* 800 25,100
DSC Communications Corp.* 1,800 83,700
Tellabs, Inc.* 1,200 57,750
U.S. Robotics, Inc.* 600 65,400
TELECOMMUNICATIONS SERVICE - 4.4%
ALC Communications* 800 36,100
ALLTEL Corporation 2,000 50,750
Ameritech Corporation 4,200 184,800
AT&T Corporation 1,500 79,500
Bell Atlantic Corporation 4,100 229,600
BellSouth Corporation 5,000 317,500
Cellular Commun. of Puerto Rico* 1,000 30,625
Centennial Cellular Corporation* 1,000 16,750
GTE Corporation 14,500 494,813
LCI International, Inc.* 1,500 45,937
LIN Broadcasting Corporation* 400 50,600
Pacific Telesis Group 7,500 200,625
Paging Network, Inc.* 1,000 34,250
SBC Communications, Inc. 5,900 280,988
U.S. West, Inc. 4,000 166,500
United States Cellular Corporation* 600 18,150
TEXTILES - 0.1%
Unifi, Inc. 1,300 31,200
THRIFT - 0.5%
Federal Home Loan Mortgage Corp 1,000 68,750
Federal National Mortgage Assoc. 1,700 160,437
JSB Financial Corporation 1,000 28,875
TIRE & RUBBER - 0.2%
Goodyear Tire & Rubber Company 2,600 106,925
TOBACCO - 0.8%
American Brands, Inc. 2,000 79,500
Philip Morris Companies, Inc. 4,300 319,812
TOILETRIES / COSMETICS - 0.2%
Gillette Company 2,600 115,700
TOYS - 0.1%
Mattel, Inc. 2,500 65,625
TRUCKING & TRANSPORT LEASING - 0.2%
M.S. Carriers, Inc.* 1,000 19,000
Ryder System, Inc. 1,000 23,875
Werner Enterprise, Inc. 3,100 62,000
-----------
TOTAL COMMON STOCK - 62.5%
(Cost $27,042,950) $32,017,112
===========
</TABLE>
*Securities are non - income producing
See Notes To Financial Statements
23
<PAGE> 24
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------- ------ ------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
AEROSPACE / DEFENSE - 0.4%
Lockheed Corporation A+ 9.375 10/15/99 $ 100,000 $ 110,565
Rockwell International Corp. AA- 8.875 09/15/99 100,000 109,030
AUTO & TRUCK - 1.1%
General Motors Corporation BBB+ 9.125 07/15/01 500,000 555,626
BANK - 2.9%
Bankers Trust New York Corp. A 9.500 06/14/00 250,000 280,990
First Union Corporation A- 9.450 06/15/99 100,000 109,474
Morgan, J.P. & Company AA 8.500 08/15/03 500,000 551,094
NBD Bancorp A+ 8.100 03/01/02 500,000 536,407
CHEMICAL - 1.1%
Monsanto Company A 8.875 12/15/09 500,000 587,032
DIVERSIFIED - 1.3%
United Technologies Corporation A+ 9.625 05/15/99 100,000 102,568
Whitman Corporation BBB+ 8.250 02/15/07 500,000 543,400
ELECTRIC & GAS UTILITIES - 6.3%
Alabama Power Company A+ 8.500 05/01/22 500,000 528,061
Florida Power & Light Company A+ 7.875 01/01/13 500,000 506,874
Georgia Power Company A+ 7.625 03/01/23 450,000 449,749
Hydro Quebec A+ 7.000 03/01/05 500,000 500,117
Potomac Edison Company A+ 7.750 05/01/25 500,000 511,728
Public Service Electric & Gas A- 7.000 09/01/24 200,000 185,375
Virginia Electric & Power Company A 8.000 03/01/04 500,000 539,376
FINANCIAL SERVICES - 3.5%
Associates Corporation of North America AA- 8.700 01/01/97 200,000 206,882
Ford Holdings, Inc. A+ 9.250 03/01/00 475,000 522,500
General Electric Capital Corporation AAA 7.750 03/15/02 500,000 538,418
Loews Corporation AA- 8.250 01/15/07 500,000 520,884
FOREIGN GOVERNMENT - 2.9%
Province of Nova Scotia A- 7.250 07/27/13 500,000 489,376
</TABLE>
See Notes To Financial Statements
24
<PAGE> 25
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
FIXED INCOME SECURITIES CREDIT PRINCIPAL MARKET
ISSUE RATING COUPON MATURITY AMOUNT VALUE
------------------------ ------ ------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
FOREIGN GOVERNMENT - 2.9% (Continued)
Province of Quebec A+ 8.800 04/15/03 $ 350,000 $ 388,828
Province of Saskatchewan BBB+ 9.375 12/15/20 500,000 613,577
GOVERNMENTAL AGENCY - 1.0%
Federal National Mortgage Association Not Rat 5.520 04/13/98 500,000 490,221
INSURANCE - 2.5%
Chubb Corporation AA+ 8.750 11/15/99 100,000 105,216
CIGNA Corporation BBB+ 8.250 01/01/07 500,000 527,969
Farmers Group, Inc. A+ 8.250 07/15/96 200,000 203,990
Metropolitan Life Insurance Co. AA 7.450 11/01/23 450,000 418,123
NATURAL GAS - 0.8%
Tennesee Gas Pipeline Company BBB- 6.000 12/15/11 500,000 420,539
NEWSPAPER - 0.9%
Knight-Ridder, Inc. AA- 9.875 04/15/09 100,000 126,026
Tribune Company Not Rat 8.450 02/25/98 300,000 315,034
OFFICE EQUIPMENT & SUPPLIES - 0.6%
Xerox Corporation A 9.750 03/15/00 200,000 225,063
Xerox Corporation A 9.200 07/15/99 100,000 102,019
PACKAGING & CONTAINER - 0.8%
Crown Cork & Seal Company, Inc. BBB+ 8.375 01/15/05 390,000 427,079
PETROLEUM - 2.2%
Atlantic Richfield Company A 8.500 04/01/12 250,000 282,266
BP America, Inc. AA- 8.750 02/01/03 320,000 359,129
Louisiana Land & Exploration Co. BBB 7.625 04/15/13 500,000 485,938
RAILROAD - 0.2%
Union Pacific Railroad AA- 9.500 02/15/99 100,000 104,635
RETAIL STORE - 1.9%
Dayton Hudson Corporation A 9.625 02/01/08 200,000 242,626
K mart Corporation BBB 8.125 12/01/06 500,000 520,000
</TABLE>
See Notes To Financial Statements
25
<PAGE> 26
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
FIXED INCOME SECURITIES CREDIT PRINCIPAL MARKET
ISSUE RATING COUPON MATURITY AMOUNT VALUE
------------------------ ------ ------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
RETAIL STORE - 1.9% (Continued)
Sears, Roebuck & Company BBB 8.550 08/01/96 $ 100,000 $ 102,281
Sears, Roebuck & Company BBB 9.000 09/15/96 100,000 103,094
SECURITIES BROKERAGE - 0.6%
Salomon, Inc. BBB+ 9.450 03/15/98 300,000 319,676
TELECOMMUNICATIONS SERVICE - 2.5%
AT&T Corporation AA 7.125 01/15/02 500,000 514,532
NYNEX Corporation A 7.375 12/15/11 250,000 248,063
SBC Communications, Inc. AA 7.375 05/01/12 500,000 495,938
TOBACCO - 0.9%
Philip Morris Companies, Inc. A 9.000 01/01/01 400,000 441,500
U.S. GOVERNMENT - 1.6%
U.S. Treasury 7.875 11/15/04 750,000 835,548
-----------
TOTAL FIXED-INCOME SECURITIES - 36.0%
(Cost $17,686,799) 18,404,436
TOTAL COMMON STOCK - 62.5%
(Cost $27,042,950) 32,017,112
-----------
TOTAL INVESTMENTS IN SECURITIES - 98.5%
(Cost $44,729,749) 50,421,548
CASH AND OTHER ASSETS, LESS LIABILITIES - 1.5% 778,057
-----------
TOTAL NET ASSETS - 100% $51,199,605
===========
</TABLE>
See Notes To Financial Statements
26
<PAGE> 27
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------ ------ ------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
AIR TRANSPORT - 2.1%
Federal Express Corporation BBB 9.650 06/15/12 $ 25,000 $ 29,108
BANK - 3.9%
Chemical Banking Corporation A- 7.625 01/15/03 25,000 25,969
Westpac Banking Corporation A 9.125 08/15/01 25,000 27,891
BEVERAGE - 1.9%
Coca-Cola Enterprises AA- 8.000 09/15/22 25,000 26,938
CHEMICAL - 2.1%
Monsanto Company A 8.700 10/15/21 25,000 28,734
COMPUTERS & PERIPHERALS - 1.8%
Digital Equipment Corporation BB- 8.625 11/01/12 25,000 25,490
DIVERSIFIED - 4.3%
AlliedSignal, Inc. A 9.500 06/01/16 25,000 30,565
United Technologies Corporation A+ 8.750 03/01/21 25,000 28,891
ELECTRIC & GAS UTILITIES - 17.5%
Consolidated Edison Co. of N.Y., Inc. A+ 7.375 09/01/05 25,000 25,825
Florida Power Corporation AA- 8.625 11/01/21 50,000 53,333
FPL Group Capital, Inc. A 7.625 05/01/13 25,000 25,315
Houston Lighting & Power Co. A 8.750 03/01/22 30,000 32,895
Hydro Quebec A+ 8.400 01/15/22 50,000 53,646
Nevada Power Company BBB 8.500 01/01/23 25,000 26,023
Texas Utilities Company BBB 6.750 03/01/03 25,000 24,766
ELECTRICAL EQUIPMENT - 3.6%
Philips Electronics N.V. BBB+ 7.250 08/15/13 25,000 24,422
Westinghouse Electric Corp. BBB- 8.625 08/01/12 25,000 26,000
ENVIRONMENTAL - 1.9%
Laidlaw, Inc. BBB+ 8.250 05/15/23 25,000 25,923
</TABLE>
See Notes To Financial Statements
27
<PAGE> 28
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------ ------ ------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 10.0%
Barclays North American Capital Corp. AA- 9.750 05/15/21 $ 25,000 $ 28,781
Dean Witter Discover & Company A 6.750 10/15/13 40,000 37,274
Ford Motor Credit Corporation A+ 6.375 11/05/08 25,000 23,453
General Motors Acceptance Corp. BBB+ 8.250 04/01/16 25,000 25,742
Loews Corporation AA- 7.000 10/15/23 25,000 22,595
FOOD PROCESSING - 4.8%
Borden, Inc. BBB- 9.250 06/15/19 25,000 26,824
Dole Food Company, Inc. BBB- 7.875 07/15/13 40,000 39,083
FOREIGN GOVERNMENT - 4.1%
Province of Ontario AA- 7.375 01/27/03 25,000 26,000
Province of Saskatchewan BBB+ 9.375 12/15/20 25,000 30,679
INSURANCE - 5.1%
CIGNA Corporation BBB+ 7.400 01/15/03 25,000 24,748
Metropolitan Life Insurance Co. AA 7.450 11/01/23 50,000 46,458
MACHINERY - 2.1%
Caterpillar, Inc. A 9.750 06/01/19 25,000 28,367
METALS & MINING - 2.0%
Alcan Aluminum Ltd. A- 8.875 01/15/22 25,000 27,380
PAPER & FOREST PRODUCTS - 2.0%
Georgia-Pacific Corporation BBB- 9.125 07/01/22 25,000 26,984
PETROLEUM - 3.6%
NOVA Gas Transmission A- 7.875 04/01/23 25,000 26,010
OXY USA, Inc. BBB 7.000 04/15/11 25,000 23,189
RECREATION - 1.7%
Brunswick Corporation BBB+ 7.375 09/01/23 25,000 24,202
RETAIL STORE - 5.7%
Dayton Hudson Corporation A 10.000 01/01/11 20,000 24,594
K mart Corporation BBB 8.375 07/01/22 25,000 24,617
Sears, Roebuck & Company BBB 9.375 11/01/11 25,000 29,292
</TABLE>
See Notes To Financial Statements
28
<PAGE> 29
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
------------------------ ------ ------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 3.8%
Lehman Brothers Holdings, Inc. A 7.625 07/15/99 $ 25,000 $ 25,485
Salomon, Inc. BBB+ 6.750 01/15/06 30,000 27,628
TELECOMMUNICATIONS SERVICE - 7.4%
Bell Telephone Co. Pennsylvania AA 7.500 05/01/13 50,000 50,078
NYNEX Corporation A 7.000 06/15/13 30,000 29,036
SBC Communications, Inc. AA 7.375 05/01/12 25,000 24,797
U. S. GOVERNMENT - 5.3%
U. S. Treasury 5.750 08/15/03 75,000 72,726
----------
TOTAL FIXED-INCOME SECURITIES - 96.7%
(Cost $1,330,689) 1,337,756
CASH AND OTHER ASSETS, LESS LIABILITIES - 3.3% 45,839
----------
TOTAL NET ASSETS - 100% $1,383,595
==========
</TABLE>
See Notes To Financial Statements
29
<PAGE> 30
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 0.4%
Heritage Media Corporation BB- 06/15/02 11.000 $ 500,000 $ 532,500
AEROSPACE / DEFENSE - 2.2%
AAR Corporation BBB- 10/15/03 7.250 500,000 481,880
Coltec Industries, Inc. BB- 04/01/02 10.250 500,000 520,000
Lockheed Corporation A+ 03/15/23 7.875 500,000 504,826
McDonnell Douglas Corporation BBB 04/01/12 9.750 1,000,000 1,200,000
AIR TRANSPORT - 2.6%
AMR Corporation BB+ 08/01/12 9.000 1,000,000 1,039,636
AMR Corporation BB+ 03/15/00 9.750 100,000 111,500
Delta Air Lines, Inc. BB 02/01/11 10.375 500,000 577,813
Federal Express Corporation BBB+ 01/01/15 7.630 500,000 488,255
United Airlines, Inc. BB 08/15/21 9.750 500,000 545,782
United Airlines, Inc. BB 07/15/21 10.250 500,000 550,000
APPAREL- 1.9%
Fruit of the Loom, Inc. BBB+ 03/15/11 7.000 1,000,000 897,728
Phillips-Van Heusen Corp. BBB 11/15/23 7.750 1,000,000 964,646
Platex Family Products Corp. B+ 12/15/03 9.000 500,000 470,000
AUTO PARTS - 0.4%
JPS Automotive Products Corp. B 06/15/01 11.125 500,000 497,500
AUTO & TRUCK - 1.4%
Ford Motor Company A+ 11/15/22 8.875 1,000,000 1,103,126
General Motors Corporation BBB+ 04/15/16 8.125 700,000 708,969
BANK - 4.9%
Bank of Boston Corporation BBB 12/01/05 6.625 1,000,000 961,564
Chase Manhattan Corp. A- 10/15/08 6.125 1,000,000 895,314
Citicorp A- 02/01/16 10.500 329,000 351,431
Comerica Bank A- 12/01/13 7.125 1,000,000 956,546
NCNB Corporation A- 07/15/15 10.200 1,000,000 1,245,290
Republic New York Corporation AA- 05/15/21 9.125 1,000,000 1,178,126
Westpac Banking Corporation A 08/15/01 9.125 500,000 557,813
</TABLE>
See Notes To Financial Statements
30
<PAGE> 31
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
BEVERAGE - 1.2%
Anheuser Busch Companies, Inc. AA- 03/01/17 8.500 $1,000,000 $ 1,054,531
Royal Crown Corporation B+ 08/01/00 9.750 500,000 475,000
BROADCASTING / CABLE TV - 3.7%
Cablevision Industries Corp. BB- 01/30/02 10.750 400,000 434,000
Century Communications Corp. BB- 03/01/05 9.500 500,000 500,000
Century Communications Corp. BB- 02/15/02 9.750 250,000 253,750
Comcast Cablevision B+ 01/15/08 9.500 500,000 497,659
Continental Cablevision, Inc. BB+ 08/01/13 9.500 500,000 517,500
Jones Intercable, Inc. B+ 03/01/08 10.500 200,000 211,065
Jones Intercable, Inc. B+ 07/15/04 11.500 250,000 280,000
Tele-Communications, Inc. BBB- 02/15/23 8.750 500,000 481,719
Tele-Communications, Inc. BBB- 01/15/23 9.250 760,000 763,028
Turner Broadcasting System, Inc. BB+ 07/01/13 8.375 750,000 686,250
BUILDING MATERIALS- 0.4%
Schuller International Group BB- 12/15/04 10.875 500,000 555,000
BUILDING - 1.9%
Ryland Group BB- 07/15/02 10.500 500,000 515,000
Sherritt Gordon Ltd. BB- 04/01/03 9.750 500,000 505,000
Standard Pacific Corporation BB 03/01/00 10.500 300,000 303,000
Toll Corporation BB- 03/15/02 10.500 550,000 566,500
U.S. Home Corporation B+ 06/15/03 9.750 500,000 492,500
CHEMICAL - 1.3%
Arcadian Partners, L.P. B+ 05/01/05 10.750 500,000 510,000
Borden Chemicals and Plastics, L.P. BB+ 05/01/05 9.500 500,000 505,000
Union Carbide Chemicals & Plastics Co. BBB 04/01/23 7.875 600,000 627,000
COMPUTER & PERIPHERALS - 2.2%
Digital Equipment Corporation BB- 11/01/12 8.625 1,200,000 1,223,503
International Business Machines A 11/01/19 8.375 1,000,000 1,105,314
Unisys Corporation BB- 09/15/16 9.750 200,000 195,827
Unisys Corporation BB- 10/01/99 10.625 250,000 268,750
</TABLE>
See Notes To Financial Statements
31
<PAGE> 32
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
DIVERSIFIED - 1.7%
ITT Corporation A+ 07/01/11 7.500 $1,000,000 $ 955,314
Tenneco, Inc. BBB- 11/15/12 9.000 500,000 562,956
Textron, Inc. BBB 07/01/22 8.750 581,000 631,764
ELECTRIC & GAS UTILITIES - 12.4%
Alabama Power Company A+ 12/01/24 9.000 1,000,000 1,112,133
Cleveland Electric Illuminating Company BB 03/01/17 9.375 500,000 491,250
Duke Power Company AA- 03/01/22 8.625 500,000 536,232
Florida Power & Light Company A+ 01/01/13 7.875 500,000 506,874
FPL Group Capital, Inc. A 05/01/13 7.625 500,000 506,303
Georgia Power Company A+ 02/01/23 7.950 1,000,000 1,019,064
Hydro Quebec A+ 01/15/22 8.400 800,000 858,333
Indianapolis Power & Light Co. AA- 02/01/24 7.050 1,000,000 944,188
Long Island Lighting Company BB+ 07/15/19 8.900 473,000 436,786
Midland Cogeneration Venture BB- 07/23/02 10.330 458,000 473,792
New Orleans Public Service, Inc. BBB 03/01/23 8.000 600,000 602,798
Niagra Mohawk Power Corporation BBB- 04/01/24 7.875 1,000,000 963,684
Northern Illinois Gas Company AA 08/15/21 8.875 1,000,000 1,071,023
Philadelphia Electric Company BBB+ 09/01/22 8.250 1,000,000 1,025,001
Potomac Electric Power Company A 06/01/21 9.000 1,000,000 1,122,967
Public Service Electric & Gas A- 09/01/24 7.000 1,000,000 926,876
Southern California Edison Co. A+ 12/01/17 8.375 655,000 671,503
Virginia Electric & Power Company A 10/01/24 8.625 1,000,000 1,080,626
West Penn Power Company A+ 08/01/24 8.125 1,000,000 1,065,000
ELECTRIC EQUIPMENT - 1.7%
Essex Group, Inc. B+ 05/01/03 10.000 500,000 495,000
Philips Electronics N.V. BBB+ 08/15/13 7.250 1,000,000 976,876
Westinghouse Electric Corp. BBB- 06/01/01 8.875 250,000 266,471
Westinghouse Electric Corp. BBB- 08/01/12 8.625 375,000 390,000
ELECTRONICS - 0.8%
ADT Operations, Inc. BB+ 08/01/03 9.250 500,000 515,000
Rogers Communications, Inc. BB- 04/15/04 10.875 500,000 510,780
ENVIRONMENTAL - 0.8%
Laidlaw, Inc. BBB+ 05/15/23 8.250 1,000,000 1,036,904
</TABLE>
See Notes To Financial Statements
32
<PAGE> 33
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 2.2%
Auburn Hills Trust A- 05/01/20 12.000 $ 400,000 $ 585,750
CRA Finance USA, Ltd. A+ 12/01/13 7.125 500,000 490,705
Dean Witter Discover & Company A 10/15/13 6.750 1,250,000 1,164,809
Keystone Group, Inc. BB- 09/01/03 9.750 500,000 505,000
FOOD PROCESSING - 1.4%
Chiquita Brands Int'l, Inc. B+ 01/15/04 9.625 1,000,000 985,000
ConAgra, Inc. BBB- 03/01/21 9.750 500,000 601,698
Fresh Del Monte Produce N.V. CCC+ 05/01/03 10.000 250,000 213,668
FOREIGN GOVERNMENT - 4.3%
Province of Newfoundland BBB+ 10/22/22 8.650 1,000,000 1,103,784
Province of Nova Scotia A- 07/27/13 7.250 1,000,000 978,751
Province of Quebec A+ 12/01/26 8.625 1,000,000 1,098,705
Province of Saskatchewan BBB+ 02/01/13 8.000 1,000,000 1,072,573
Republic of Finland AA- 04/01/28 9.625 1,000,000 1,148,089
GROCERY - 1.2%
Penn Traffic Company BB- 02/15/02 10.250 500,000 512,500
Ralph's Grocery Company B 06/15/04 10.450 250,000 251,250
Ralph's Grocery Company B- 06/15/05 13.750 194,000 208,394
Safeway, Inc. BB+ 03/15/07 9.875 450,000 504,054
HOTEL / GAMING - 1.4%
Caesers World, Inc. BB+ 08/15/02 8.875 500,000 529,324
California Hotel Finance Corp. BB- 12/01/02 11.000 400,000 412,000
Empress River Casino Finance Corp. BB 04/01/02 10.750 500,000 507,399
Showboat, Inc. BB- 05/01/08 9.250 400,000 370,000
HOUSEHOLD PRODUCTS - 0.5%
American Standard, Inc. B 06/01/01 9.875 350,000 364,000
Owens Illinois, Inc. B+ 08/15/04 9.750 250,000 256,407
</TABLE>
See Notes To Financial Statements
33
<PAGE> 34
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
INSURANCE - 6.7%
Aetna Life & Casualty Company A+ 09/15/13 6.750 $1,000,000 $ 895,626
CIGNA Corporation BBB+ 03/01/23 7.650 500,000 465,626
CNA Financial Corporation A- 11/15/23 7.250 1,000,000 914,604
Continental Corporation BBB- 08/15/12 8.375 600,000 639,380
Kaufman & Broad Home Corp. BB- 05/01/03 9.375 1,000,000 965,000
Leucadia National Corporation BBB+ 08/15/13 7.750 910,000 846,300
MBIA, Inc. AA+ 10/01/22 8.200 2,000,000 2,135,809
Metropolitan Life Insurance Co. AA 11/01/23 7.450 500,000 464,581
Penncorp Financial Group, Inc. BB- 12/15/03 9.250 500,000 477,500
Reliance Group Holdings, Inc. BB+ 11/15/00 9.000 500,000 495,000
MEDICAL SERVICES - 2.0%
Abbey Healthcare Group, Inc. B- 11/01/02 9.500 500,000 488,173
Columbia/HCA Corporation BBB+ 12/15/14 9.000 1,000,000 1,129,376
Continental Medical Systems, Inc. B 08/15/02 10.875 350,000 365,750
HEALTHSOUTH Rehabilitation B 04/01/01 9.500 500,000 517,500
MEDICAL SUPPLIES - 0.5%
Cardinal Health, Inc. BBB+ 02/15/04 6.500 700,000 679,557
METALS & MINING - 1.7%
Alcan Aluminum Ltd. A- 01/15/22 8.875 1,000,000 1,095,200
Inco Ltd. BBB- 06/15/22 9.600 500,000 544,053
Kaiser Aluminum & Chemical Corp. B- 02/01/03 12.750 500,000 537,500
NATURAL GAS - 1.6%
Consolidated Natural Gas Company AA- 12/01/11 8.625 1,000,000 1,057,250
Seagull Energy BB- 08/01/05 8.625 1,000,000 965,000
OILFIELD SERVICES - 0.2%
Rowan Companies, Inc. B+ 12/01/01 11.875 250,000 267,500
PACKAGING & CONTAINERS - 0.7%
Anchor Glass Container Corp. B 12/15/08 9.875 500,000 457,500
Container Corp. of America B+ 04/01/03 9.750 400,000 408,000
</TABLE>
See Notes To Financial Statements
34
<PAGE> 35
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
PAPER & FOREST PRODUCTS - 2.9%
Bowater, Inc. BBB- 10/15/12 9.500 $ 700,000 $ 806,268
Domtar, Inc. BB- 03/15/99 11.750 750,000 833,910
Fort Howard Corporation B 03/15/03 10.000 400,000 393,250
Georgia-Pacific Corporation BBB- 07/01/22 9.125 1,000,000 1,079,376
Sweetheart Corporation, Inc. B+ 09/01/00 9.625 500,000 505,000
PETROLEUM - 5.2%
ANR Pipeline Company BBB- 11/01/21 9.625 1,000,000 1,201,788
Clark Oil & Refining Corporation BB 09/15/04 9.500 650,000 666,250
Diamond Shamrock R & M, Inc. BBB 04/01/23 8.000 600,000 594,259
Maxus Energy Corporation BB- 11/01/03 9.375 750,000 712,500
NOVA Gas Transmission A- 04/01/23 7.875 600,000 624,239
OXY USA, Inc. BBB 04/15/11 7.000 1,000,000 927,541
Phillips Petroleum Company BBB 01/01/23 8.490 1,000,000 1,045,549
USX Corporation BB+ 02/15/12 9.375 750,000 817,735
RAILROAD - 0.4%
Kansas City Southern Industries, Inc. BBB+ 07/01/22 8.800 500,000 535,433
REAL ESTATE INVESTMENT TRUST - 0.6%
Taubman Realty Group Ltd. BBB 10/01/03 7.000 750,000 742,893
RECREATION - 1.9%
Bally's Health & Tennis Corp. B+ 01/15/03 13.000 500,000 428,564
Brunswick Corporation BBB+ 09/01/23 7.375 975,000 943,892
Time Warner, Inc. BBB- 01/15/13 9.125 1,000,000 1,050,000
RETAIL STORE - 5.5%
Best Buy, Inc. B+ 10/01/00 8.625 1,000,000 995,000
Dayton Hudson Corporation A 08/01/23 7.650 750,000 730,548
Genesco, Inc. B 02/01/03 10.375 425,000 372,475
Hechinger Company BB+ 11/15/12 9.450 600,000 667,392
K mart Corporation BBB 10/01/12 7.750 1,000,000 950,939
May Department Stores A 12/01/16 9.125 1,000,000 1,055,626
Rite-Aid Corporation A- 08/15/13 6.875 1,000,000 938,439
Sears, Roebuck & Company BBB 11/01/11 9.375 1,000,000 1,171,673
</TABLE>
See Notes To Financial Statements
35
<PAGE> 36
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
S & P
Fixed Income Securities Credit Maturity Principal Market
Issue Rating Date Coupon Amount Value
---------------------- ------ --------- ------- ---------- ------------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 4.0%
Bear Stearns Companies, Inc. A 01/15/04 6.625 $1,000,000 $ 964,689
Goldman Sachs Group A+ 03/01/13 8.000 1,000,000 907,380
Lehman Brothers, Inc. A 05/15/05 11.625 1,023,000 1,314,464
Morgan Stanley Group, Inc. A+ 10/01/13 7.000 1,000,000 912,974
PaineWebber Group, Inc. BBB+ 02/15/14 7.625 1,000,000 917,249
STEEL - 1.2%
AK Steel Corporation B+ 04/01/04 10.750 500,000 527,500
Earle M. Jorgensen Company B 03/01/00 10.750 500,000 495,000
Wheeling-Pittsburgh Corporation BB 11/15/03 9.375 500,000 462,500
TELECOMMUNICATIONS SERVICE - 3.2%
GTE Corporation BBB+ 11/01/21 8.750 1,000,000 1,132,189
NYNEX Corporation A 12/15/11 7.375 500,000 496,126
Paging Network, Inc. B 02/01/06 8.875 1,000,000 925,000
Panamsat L.P. B+ 08/01/00 9.750 500,000 512,500
SBC Communications, Inc. AA 05/01/12 7.375 1,000,000 991,876
TEXTILES - 1.0%
Fieldcrest Cannon, Inc. B+ 06/15/04 11.250 500,000 525,000
WestPoint Stevens, Inc. BB- 12/15/01 8.750 750,000 742,500
TOBACCO - 0.6%
RJR Nabisco, Inc. BBB- 04/15/04 8.750 775,000 796,071
TOYS - 0.4%
Tyco Toys, Inc. B- 08/15/02 10.125 500,000 468,994
U.S. GOVERNMENT - 4.0%
U.S. Treasury 02/15/05 7.500 1,600,000 1,742,750
U.S. Treasury 05/31/96 5.875 3,218,000 3,222,525
------------
TOTAL FIXED INCOME SECURITIES - 97.2%
(Cost $118,674,839) 122,146,110
CASH AND OTHER ASSETS, LESS LIABILITIES - 2.8% 3,474,755
------------
TOTAL NET ASSETS - 100% $125,620,865
============
</TABLE>
See Notes To Financial Statements
36
<PAGE> 37
ADVANCE CAPITAL I, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
----------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities . . . . . . . . $19,744,124 $4,337,683 $50,421,548 $ 1,337,756 $122,146,110
Cash . . . . . . . . . . . . . . . 744,872 55,381 376,590 17,392 737,655
Receivables:
Dividends and interest . . . . . . . . . 8,704 87,561 455,359 28,918 2,854,241
Securities sold . . . . . . . . . . . . . 0 0 0 0 0
Prepaid expenses . . . . . . . . . . . . . 1,421 890 3,785 387 4,473
----------- ---------- ----------- ----------- ------------
Total assets . . . . . . . . . . . . . . . 20,499,121 4,481,515 51,257,282 1,384,453 125,742,479
LIABILITIES
Payable to affiliated entities . . . . . . 15,408 1,490 40,236 456 77,908
Accounts payable and accrued expenses . . 9,695 1,981 16,148 226 38,603
Securities purchased . . . . . . . . . . 86,226 0 0 0 0
Distributions payable . . . . . . . . . . 0 3,571 1,293 176 5,103
----------- ---------- ----------- ----------- ------------
Total liabilities . . . . . . . . . . . . 111,329 7,042 57,677 858 121,614
----------- ---------- ----------- ----------- ------------
Net assets . . . . . . . . . . . . . . . $20,387,792 $4,474,473 $51,199,605 $ 1,383,595 $125,620,865
=========== ========== =========== =========== ============
NET ASSETS
Paid-in capital . . . . . . . . . . . . . $17,749,578 $4,292,701 $45,091,932 $ 1,382,287 $122,199,745
Accumulated undistributed net
investment income (loss) . . . . . . . . (19,046) 0 0 0 0
Accumulated undistributed net realized
gain (loss) on investments . . . . . . . (453,726) (26,369) 415,874 (5,759) (50,151)
Net unrealized appreciation in value
of investments . . . . . . . . . . . . . 3,110,986 208,141 5,691,799 7,067 3,471,271
----------- ---------- ----------- ----------- ------------
Net assets . . . . . . . . . . . . . . . $20,387,792 $4,474,473 $51,199,605 $ 1,383,595 $125,620,865
=========== ========== =========== =========== ============
SHARES OUTSTANDING . . . . . . . . . . . . . 1,874,822 428,530 4,453,985 134,447 12,363,508
=========== ========== =========== =========== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE . . . . . . . . $ 10.87 $ 10.44 $ 11.50 $ 10.29 $ 10.16
=========== ========== =========== =========== ============
</TABLE>
See Notes To Financial Statements
37
<PAGE> 38
ADVANCE CAPITAL I, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
----------- --------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . $ 18,342 $ 162,008 $ 630,580 $ 50,354 $ 4,798,861
Dividends . . . . . . . . . . . . . 61,654 0 384,751 0 0
----------- --------- ----------- --------- ------------
Total investment income . . . . . . . . 79,996 162,008 1,015,331 50,354 4,798,861
EXPENSES
Paid to affiliates:
Investment advisory fees . . . . . . 58,280 8,479 166,226 2,498 274,811
Administration fees . . . . . . . . . 0 0 0 0 0
Distribution expenses . . . . . . . . 20,814 0 59,367 0 137,405
Transfer and dividend disbursing
agent fees . . . . . . . . . . . . 0 0 0 0 0
Paid to others:
Custodial fees . . . . . . . . . . . 11,202 1,350 13,858 449 1,682
Directors fees and expenses . . . . 296 79 880 0 1,969
Legal fees . . . . . . . . . . . . . 0 0 0 0 0
Accountant fees . . . . . . . . . . . 2,186 593 6,380 0 14,520
Shareholder reporting costs . . . . . 2,870 751 8,528 39 18,861
Registration and filing fees . . . . 2,442 763 1,593 721 11,247
Other operating expenses . . . . . . 952 304 3,601 238 7,105
----------- --------- ----------- --------- ------------
Total expenses . . . . . . . . . . . . 99,042 12,319 260,433 3,945 467,600
----------- --------- ----------- --------- ------------
NET INVESTMENT INCOME (LOSS) (19,046) 149,689 754,898 46,409 4,331,261
REALIZED GAIN ON INVESTMENTS
Proceeds from securities sold . . . . . 1,481,435 52,888 9,881,435 22,195 13,264,979
Cost of securities sold . . . . . . . . (1,361,996) (51,452) (8,685,982) (21,508) (13,110,630)
----------- --------- ----------- --------- ------------
Net realized gain on investments . . . 119,439 1,436 1,195,453 687 154,349
UNREALIZED GAIN ON INVESTMENTS
Appreciation (depreciation),
Beginning of year . . . . . . . . . . 140,944 (143,465) 135,558 (131,207) (7,293,366)
Appreciation, End of period . . . . . 3,110,986 208,141 5,691,799 7,067 3,471,271
----------- --------- ----------- --------- ------------
Net unrealized gain on investments . . 2,970,042 351,606 5,556,241 138,274 10,764,637
----------- --------- ----------- --------- ------------
NET GAIN ON INVESTMENTS 3,089,481 353,042 6,751,694 138,961 10,918,986
----------- --------- ----------- --------- ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,070,435 $ 502,731 $ 7,506,592 $ 185,370 $ 15,250,247
=========== ========= =========== ========= ============
</TABLE>
See Notes To Financial Statements
38
<PAGE> 39
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY GROWTH BOND
-------------------------- ------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1995 1994 1995 1994
------------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . $ (19,046) $ (31,711) $ 149,689 $ 303,948
Net realized gain (loss) on investments . . . . . . . 119,439 (573,165) 1,436 (27,805)
Net unrealized gain (loss) on investments . . . . . . 2,970,042 212,430 351,606 (488,493)
------------ ----------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 3,070,435 (392,446) 502,731 (212,350)
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . 0 0 (149,689) (303,948)
Net realized gain on investments . . . . . . . . . . 0 0 0 0
------------ ----------- ---------- -----------
Total distributions to shareholders . . . . . . . . . 0 0 (149,689) (303,948)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . 5,668,239 7,528,321 268,343 695,361
Reinvestment of distributions . . . . . . . . . . . . 0 0 128,350 269,884
Cost of shares reacquired . . . . . . . . . . . . . . (984,592) (2,078,769) (274,738) (1,190,895)
------------ ----------- ---------- -----------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . 4,683,647 5,449,552 121,955 (225,650)
------------ ----------- ---------- -----------
Net increase (decrease) in net assets . . . . . . . . 7,754,082 5,057,106 474,997 (741,948)
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 12,633,710 7,576,604 3,999,476 4,741,424
------------ ----------- ---------- -----------
End of period . . . . . . . . . . . . . . . . . . . $ 20,387,792 $12,633,710 $4,474,473 $ 3,999,476
============ =========== ========== ===========
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . 585,221 814,695 26,851 69,169
Shares issued from reinvestment of distributions. . . 0 0 12,775 26,963
Reacquired . . . . . . . . . . . . . . . . . . . (101,533) (224,684) (27,181) (118,389)
------------ ----------- ---------- -----------
Net increase (decrease) in shares outstanding . . . . 483,688 590,011 12,445 (22,257)
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 1,391,134 801,123 416,085 438,342
------------ ----------- ---------- -----------
End of period . . . . . . . . . . . . . . . . . . . 1,874,822 1,391,134 428,530 416,085
============ =========== ========== ===========
</TABLE>
See Notes To Financial Statements
39
<PAGE> 40
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
<TABLE>
<CAPTION>
BALANCED LONG TERM INCOME
-------------------------- ------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1995 1994 1995 1994
------------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . $ 754,898 $ 1,448,188 $ 46,409 $ 83,318
Net realized gain (loss) on investments . . . . . . . 1,195,453 (597,213) 687 (6,446)
Net unrealized gain (loss) on investments . . . . . . 5,556,241 (2,140,483) 138,274 (154,400)
------------ ----------- ---------- -----------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 7,506,592 (1,289,508) 185,370 (77,528)
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . (754,898) (1,448,188) (46,409) (83,318)
Net realized gain on investments . . . . . . . . . . 0 0 0 0
------------ ----------- ---------- -----------
Total distributions to shareholders . . . . . . . . . (754,898) (1,448,188) (46,409) (83,318)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . 2,129,785 6,839,769 86,376 367,113
Reinvestment of distributions . . . . . . . . . . . . 745,536 1,432,265 46,218 83,061
Cost of shares reacquired . . . . . . . . . . . . . . (2,648,123) (8,003,667) (50,769) (205,843)
------------ ----------- ---------- -----------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . 227,198 268,367 81,825 244,331
------------ ----------- ---------- -----------
Net increase (decrease) in net assets . . . . . . . . 6,978,892 (2,469,329) 220,786 83,485
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 44,220,713 46,690,042 1,162,809 1,079,324
------------ ----------- ---------- -----------
End of period . . . . . . . . . . . . . . . . . . . $ 51,199,605 $44,220,713 $1,383,595 $ 1,162,809
============ =========== ========== ===========
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . 200,217 663,867 8,668 36,367
Shares issued from reinvestment of distributions. . . 68,678 140,863 4,724 8,643
Reacquired . . . . . . . . . . . . . . . . . . . (249,798) (782,820) (5,280) (20,487)
------------ ----------- ---------- -----------
Net increase (decrease) in shares outstanding . . . . 19,097 21,910 8,112 24,523
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 4,434,888 4,412,978 126,335 101,812
------------ ----------- ---------- -----------
End of period . . . . . . . . . . . . . . . . . . . 4,453,985 4,434,888 134,447 126,335
============ =========== ========== ===========
</TABLE>
See Notes To Financial Statements
40
<PAGE> 41
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
<TABLE>
<CAPTION>
RETIREMENT INCOME
--------------------------
(Unaudited)
Six months Year
ended ended
June 30, Dec. 31,
1995 1994
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . $ 4,331,261 $ 5,222,488
Net realized gain (loss) on investments . . . . . . . 154,349 (204,500)
Net unrealized gain (loss) on investments . . . . . . 10,764,637 (8,426,355)
------------ -----------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 15,250,247 (3,408,367)
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . (4,331,261) (5,222,488)
Net realized gain on investments . . . . . . . . . . 0 0
------------ -----------
Total distributions to shareholders . . . . . . . . . (4,331,261) (5,222,488)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . 31,377,646 48,774,219
Reinvestment of distributions . . . . . . . . . . . . 4,299,601 5,170,296
Cost of shares reacquired . . . . . . . . . . . . . . (5,137,768) (8,494,349)
------------ -----------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . 30,539,479 45,450,166
------------ -----------
Net increase (decrease) in net assets . . . . . . . . 41,458,465 36,819,311
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 84,162,400 47,343,089
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . $125,620,865 $84,162,400
============ ===========
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . 3,320,665 4,966,047
Shares issued from reinvestment of distributions. . . 441,604 538,445
Reacquired . . . . . . . . . . . . . . . . . . . (530,716) (864,791)
------------ -----------
Net increase (decrease) in shares outstanding . . . . 3,231,553 4,639,701
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 9,131,955 4,492,254
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . 12,363,508 9,131,955
============ ===========
</TABLE>
See Notes To Financial Statements
41
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. ORGANIZATION OF THE COMPANY
Advance Capital I, Inc. (The COMPANY) is a Maryland
Corporation organized on March 6, 1987 and commenced operations
on August 5, 1987. The COMPANY is registered under the
Investment Company Act of 1940, as amended, as an open-end,
diversified management investment company (a mutual fund)
offering shares in the Equity Growth Fund, Bond Fund, Balanced
Fund, Long Term Income Fund and Retirement Income Fund.
Note 2. ACCOUNTING POLICIES
The following is a summary of significant accounting
policies followed by the COMPANY.
Security Valuation
The Fund's assets are valued as follows: (a) stocks which
are traded on the New York Stock Exchange are valued at the last
sale price on that Exchange on the valuation day or, if no sale
occurs, at the mean between the closing bid and asked price; (b)
other stocks are valued in the manner described in (a) if traded
on any other exchange or on the National Association of
Securities Dealers NASDAQ; (c) over-the-counter stocks quoted on
the National Association of Securities Dealers NASDAQ system are
valued at the bid price supplied through such system; (d)
over-the-counter common and preferred stocks not quoted on the
NASDAQ system are valued at the mean between the last bid and
asked price, and (e) all other securities are valued at fair
value as determined in good faith by the Board of Directors,
although the actual calculation may be done by others. Money
market instruments held by the Funds with a remaining maturity
of sixty days or less will be valued at cost which approximates
market.
Federal Income Taxes
It is the COMPANY's policy to meet the requirements of the
Internal Revenue Code that are applicable to regulated
investment companies and to distribute all of its taxable income
to its shareholders. Therefore, no federal income tax provision
is provided.
Other
Fixed income security transactions are accounted for on the
trade date, the date the order to buy or sell is executed.
Common stock transactions are accounted for on the day after the
transactions occur (trade date plus one). Interest income is
recorded on the accrual basis. Dividend income is recorded on
the ex-dividend date. Realized gains and losses on security
transactions are determined on the first-in, first-out method.
Net investment losses, for which no carryforward is permitted,
are offset against paid in capital. All adjustments necessary
to present a fair statement of results for the six months ended
June 30, 1995 have been included. All adjustments were of a
normal recurring nature.
42
<PAGE> 43
Note 3. TRANSACTIONS WITH AFFILIATES
Advance Capital Management, Inc. (MANAGEMENT) (a wholly
owned subsidiary of Advance Capital Group, Inc.) is the
COMPANY'S investment adviser. Advance Capital Services, Inc.
(SERVICES) (also a wholly owned subsidiary of Advance Capital
Group, Inc.) is the distributor of the COMPANY's shares.
Advance Capital Group, Inc. (GROUP) is the COMPANY's Transfer
Agent and Dividend Disbursing Agent. For services provided by
MANAGEMENT, the COMPANY pays a fee equal on an annual basis to
.70% of the average daily net assets of the Equity Growth and
Balanced Funds, .50% of the average daily net assets of the
Retirement Income Fund, and .40% of the average daily net assets
of the Bond and Long Term Income Funds. GROUP provides
administrative, transfer agent and dividend disbursing agent
services at cost to the COMPANY. The COMPANY will reimburse
SERVICES for actual expenses incurred in connection with the
distribution of fund shares of the Equity Growth, Balanced and
Retirement Income Funds, at a rate not to exceed .25% of each
fund's average daily net assets.
The COMPANY was charged investment advisory fees of
$510,294 by MANAGEMENT for the six months ended June 30, 1995.
MANAGEMENT has made payments on behalf of the COMPANY for
custodian fees. The total of these payments, for which
reimbursement was waived, amounted to $165 for the six months
ended June 30, 1995. GROUP waived reimbursement of its
administrative, transfer agent and dividend disbursing agent
expenses. The total of these expenses approximated $9,300 for
the six months ended June 30, 1995. The COMPANY was charged
distribution fees of $217,586 by SERVICES for the six months
ended June 30, 1995. SERVICES paid or accrued to brokerage
firms a total of $8,531 for distributing COMPANY shares for the
six months ended June 30, 1995. SERVICES has made payments on
behalf of the COMPANY for custodian fees. The total of these
payments, for which reimbursement was waived, amounted to $77
for the six months ended June 30, 1995. At June 30, 1995 an
employee retirement plan sponsored by SERVICES owned 66,355
shares (3.5%) of the Equity Growth Fund and 816 shares (0.0%)
of the Balanced Fund.
Certain officers and directors of GROUP, MANAGEMENT, and
SERVICES, are also officers and directors of the COMPANY.
Directors fees are only paid to outside directors.
Note 4. INVESTMENT PORTFOLIO TRANSACTIONS
The cost of purchases and proceeds from sales of
investments, other than short-term obligations, for the six
months ended June 30, 1995 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
Purchases $6,202,514 $142,020 $10,049,273 $95,419 $44,075,872
Sales 1,481,435 52,888 9,881,435 22,195 13,264,979
</TABLE>
43
<PAGE> 44
The cost of purchases and proceeds from sales of U.S.
Government Securities included above were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
Purchases None $51,750 $1,033,203 $45,328 $13,912,984
Sales None 22,889 267,039 22,195 11,526,278
</TABLE>
Gross unrealized appreciation and depreciation of
investments as of June 30, 1995 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
Appreciation $3,883,124 $237,656 $6,442,846 $35,569 $4,940,291
Depreciation 772,138 29,515 751,047 28,502 1,469,020
</TABLE>
Note 5. CASH
As of June 30, 1995, substantially all cash was invested in
the Monitor Money Market Fund, bearing interest at a variable
rate (approximately 5.5%).
Note 6. CAPITAL LOSS CARRYOVERS
At December 31, 1994 the Equity Growth, Bond, Balanced,
Long Term Income and Retirement Income Funds had capital loss
carryovers for federal income tax purposes of $573,165, $27,805,
$779,579, $6,446 and $204,500 respectively, which if not offset
by subsequent capital gains, will begin to expire in the year
2000.
Note 7. AUTHORIZED SHARES
The Fund has one billion authorized shares of common stock,
par value of $.001 per share. Each of the Fund's five
portfolios has 200 million shares authorized.
44
<PAGE> 45
ADVANCE CAPITAL I, INC. ADVANCE CAPITAL I, INC.
An investments company with five funds.
Investment Adviser:
Advance Capital Management, Inc.
One Towne Square, Suite 444
Southfield, Michigan 48076
Sub-Adviser: Equity Growth Fund
(Equity Growth and Balanced Funds) Bond Fund
T. Rowe Price Associates, Inc. Balanced Fund
100 East Pratt Street Long Term Income Fund
Baltimore, Maryland 21202 Retirement Income Fund
Distributor:
Advance Capital Services, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Administrator and Transfer Agent:
Advance Capital Group, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Custodian:
Huntington Banks of Michigan
220 Park Street, Suite 100
Birmingham, Michigan 48009
Legal Counsel:
Berry, Moorman, King & Hudson
600 Woodbridge Place
Detroit, Michigan 48226
Board of Directors:
Joseph A. Ahern, Esq.
Richard W. Holtcamp
John C. Shoemaker
Frank R. Zimmerman
Officers: Semi-Annual Report
John C. Shoemaker, President June 30, 1995
Raymond A. Rathka, Vice President
Robert J. Cappelli, Secretary and Treasurer
