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Previous: ADVANCE CAPITAL I INC, NSAR-A, 1996-08-28 |
Next: FIDELITY U S INVESTMENTS BOND FUND L P, NSAR-B/A, 1996-08-28 |
<PAGE> 1
SEMI-ANNUAL REPORT
June 30, 1996
Advance Capital I Inc.
An investment company with five funds
<PAGE> 2
<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...........28
Retirement Income Fund..........31
Statement of Assets and Liabilities..39
Statement of Operations..............40
Statement of Changes in Net Assets...41
Notes to Financial Statements........44
</TABLE>
<PAGE> 3
Dear Shareholder:
This time last year both the stock and bond markets were
rock solid and on pace to return one of the best years ever.
This year, an unexpectedly strong economy and renewed
inflationary fears have played havoc on investors' psyche and
investment returns. Stocks, which began the year strong, have
retreated in recent weeks, and bonds have been lackluster since
January. The Bulls and Bears appear to be headed for a market
showdown and the outcome will determine near-term market
success. A closer look at the economic fundamentals may help to
explain the current market sentiment.
Since 1991, our economy has been enjoying a resurgence in
growth from the recession of the late 1980's and early 1990's.
This prosperity has brought about new technologies ranging from
increasing the quality of life for consumers to increasing the
efficiency for businesses. At the same time the Producer Price
Index and Consumer Price Index are in-line with historical
averages and the unemployment rate is at a six year low! So
where is the problem?
With all this prosperity sooner or later inflation becomes
an issue. For the past few years we have had steady growth in a
low inflationary environment that has propelled both stocks and
bonds. It now appears that inflation may be catching up with
us. To illustrate, look at the unemployment figure. At 5.3
percent it appears that just about everyone who wants a job, has
one. Eventually, however, there are too many jobs and not
enough workers, which forces companies to offer higher salaries
to potential candidates -- this creates inflation. As workers
make more, they will spend more on goods and services. The
surge in demand for durable and non-durable products creates an
imbalance between supply and demand that causes prices to rise
- -- this creates inflation.
As inflation "heats up" the Federal Reserve will begin to
raise interest rates or tighten their monetary policies in order
to slow down economic growth and inflation. As interest rates
increase, consumer and business credit becomes more expensive
which leads to a decline in demand for goods and services. This
decline in demand leads to lower sales and smaller profits. As
companies make less, they will pay less and hire fewer workers.
This scenario leads to higher unemployment, a weaker economy and
lower inflation. Inflation will have come full-circle and
eventually it will start again.
2
<PAGE> 4
The effects of higher inflation can be seen in both stocks
and bonds. It decreases the purchasing power of the fixed
income securities and reduces the present value of equity
securities. In short, inflation causes both bonds and stocks to
decline in value. Within this environment, the Advance Capital
I, Inc. Funds have performed in-line with the general markets.
The growth portfolios, the Equity Growth and the Balanced Fund,
increased 11.89 and 4.95 percent for the first half of the year.
In reaction to rising interest rates, the Bond Fund, Long Term
Income Fund and Retirement Income Fund returned -1.83, -3.4 and
- -1.86 (including interest) percent respectively, for the first
six months.
Today, the economy is on the cusp of either surging forward
at an unpredictable pace or it is trying to squeeze every last
ounce out of a five year expansion. We feel the later is
probably the most accurate. Most recently, the Federal Reserve
appears to be playing wait and see. The continuous reporting of
contradictory economic data reaffirms that we are at an
inflection point in this economic expansion. The stock and bond
markets appear to have discounted the extremes and are waiting
for the results of the presidential election for the next cue.
Absent any major problems, we believe stocks and bonds should
produce positive results for the year.
Sincerely,
Robert J. Cappelli John C. Shoemaker
Robert J. Cappelli John C. Shoemaker
August 19, 1996
3
<PAGE> 5
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
EQUITY GROWTH
-----------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period . . $12.53 $9.08 $9.46 $9.94 $9.83 $8.89
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income (loss) . . . . . . (0.03) (0.03) (0.03) 0.12 0.10 0.14
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . 1.52 3.48 (0.35) 0.07 0.11 1.78
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations . . . . 1.49 3.45 (0.38) 0.19 0.21 1.92
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Net investment income . . . . . . . . . . 0.00 0.00 0.00 (0.12) (0.10) (0.14)
Net realized gain on investments . . . . 0.00 0.00 0.00 (0.55) 0.00 (0.84)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions . . . . . . . . . . . 0.00 0.00 0.00 (0.67) (0.10) (0.98)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period . . . . . . $14.02 $12.53 $9.08 $9.46 $9.94 $9.83
=========== =========== =========== =========== =========== ===========
Total Return . . . . . . . . . . . . . . . 11.89% 38.00% -4.02% 2.13% 2.22% 20.94%
Ratios and Supplemental Data
Net assets, end of period (in thousands). $33,031 $25,625 $12,634 $7,577 $7,094 $6,275
Ratio of expenses to average net assets . 1.08% 1.12% 1.21% 1.16% 1.22% 1.38%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . -0.41% -0.29% -0.30% 1.27% 1.05% 1.37%
Portfolio turnover rate . . . . . . . . . 29.45% 13.86% 18.05% 135.55% 96.05% 86.48%
</TABLE>
See Notes To Financial Statements
4
<PAGE> 6
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
BOND
-----------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period . . $10.79 $9.61 $10.82 $10.51 $10.52 $9.91
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income (loss) . . . . . . 0.35 0.70 0.71 0.72 0.70 0.74
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . (0.55) 1.18 (1.21) 0.45 0.01 0.62
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations . . . . (0.20) 1.88 (0.50) 1.17 0.71 1.36
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Net investment income . . . . . . . . . . (0.35) (0.70) (0.71) (0.72) (0.70) (0.74)
Net realized gain on investments . . . . 0.00 0.00 0.00 (0.14) (0.02) (0.01)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions . . . . . . . . . . . (0.35) (0.70) (0.71) (0.86) (0.72) (0.75)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period . . . . . . $10.24 $10.79 $9.61 $10.82 $10.51 $10.52
=========== =========== =========== =========== =========== ===========
Total Return . . . . . . . . . . . . . . . -1.83% 20.15% -4.64% 11.48% 7.04% 14.26%
Ratios and Supplemental Data
Net assets, end of period (in thousands). $4,146 $4,527 $3,999 $4,741 $5,793 $2,439
Ratio of expenses to average net assets . 0.54% 0.55% 0.60% 0.61% 0.75% 0.85%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . 6.74% 6.80% 7.06% 6.57% 6.69% 7.36%
Portfolio turnover rate . . . . . . . . . 26.82% 6.69% 21.92% 35.99% 38.22% 25.47%
</TABLE>
See Notes To Financial Statements
5
<PAGE> 7
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
BALANCED
-----------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period . . $12.57 $9.97 $10.58 $10.36 $10.38 $9.55
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income (loss) . . . . . . 0.20 0.35 0.32 0.29 0.33 0.39
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . 0.42 2.75 (0.61) 0.22 (0.02) 1.39
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations . . . . 0.62 3.10 (0.29) 0.51 0.31 1.78
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
Net investment income . . . . . . . . . . (0.20) (0.35) (0.32) (0.29) (0.33) (0.39)
Net realized gain on investments . . . . 0.00 (0.15) 0.00 0.00 0.00 (0.56)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions . . . . . . . . . . . (0.20) (0.50) (0.32) (0.29) (0.33) (0.95)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period . . . . . . $12.99 $12.57 $9.97 $10.58 $10.36 $10.38
=========== =========== =========== =========== =========== ===========
Total Return . . . . . . . . . . . . . . . 4.95% 31.53% -2.72% 4.97% 3.07% 18.32%
Ratios and Supplemental Data
Net assets, end of period (in thousands). $65,990 $59,299 $44,221 $46,690 $42,440 $22,677
Ratio of expenses to average net assets . 1.05% 1.07% 1.10% 1.08% 1.13% 1.38%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . 3.10% 3.11% 3.18% 2.77% 3.24% 3.75%
Portfolio turnover rate . . . . . . . . . 11.39% 22.72% 34.97% 101.29% 42.39% 50.94%
</TABLE>
See Notes To Financial Statements
6
<PAGE> 8
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
LONG TERM INCOME
-----------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------
1996 1995 1994 1993
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period . . $10.78 $9.20 $10.60 $10.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment income (loss) . . . . . . 0.35 0.70 0.72 0.74
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . (0.72) 1.58 (1.40) 0.77
----------- ----------- ----------- -----------
Total from investment operations . . . . (0.37) 2.28 (0.68) 1.51
----------- ----------- ----------- -----------
Less distributions
Net investment income . . . . . . . . . . (0.35) (0.70) (0.72) (0.74)
Net realized gain on investments . . . . 0.00 0.00 0.00 (0.17)
----------- ----------- ----------- -----------
Total distributions . . . . . . . . . . . (0.35) (0.70) (0.72) (0.91)
----------- ----------- ----------- -----------
Net asset value, end of period . . . . . . $10.06 $10.78 $9.20 $10.60
=========== =========== =========== ===========
Total Return . . . . . . . . . . . . . . . -3.40% 25.57% -6.53% 14.43%
Ratios and Supplemental Data
Net assets, end of period (in thousands). $1,303 $1,450 $1,163 $1,079
Ratio of expenses to average net assets . 0.63% 0.63% 0.63% 0.64%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . 6.85% 6.93% 7.37% 6.60%
Portfolio turnover rate . . . . . . . . . 3.90% 1.74% 15.39% 75.72%
</TABLE>
See Notes To Financial Statements
7
<PAGE> 9
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
RETIREMENT INCOME
-----------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------
1996 1995 1994 1993
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period . . $10.51 $9.22 $10.54 $10.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment income (loss) . . . . . . 0.38 0.76 0.76 0.82
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . (0.57) 1.29 (1.32) 0.61
----------- ----------- ----------- -----------
Total from investment operations . . . . (0.19) 2.05 (0.56) 1.43
----------- ----------- ----------- -----------
Less distributions
Net investment income . . . . . . . . . . (0.38) (0.76) (0.76) (0.82)
Net realized gain on investments . . . . 0.00 0.00 0.00 (0.07)
----------- ----------- ----------- -----------
Total distributions . . . . . . . . . . . (0.38) (0.76) (0.76) (0.89)
----------- ----------- ----------- -----------
Net asset value, end of period . . . . . . $9.94 $10.51 $9.22 $10.54
=========== =========== =========== ===========
Total Return . . . . . . . . . . . . . . . -1.86% 22.96% -5.34% 13.92%
Ratios and Supplemental Data
Net assets, end of period (in thousands). $155,958 $139,299 $84,162 $47,343
Ratio of expenses to average net assets . 0.82% 0.84% 0.88% 0.88%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . 7.47% 7.64% 7.89% 7.41%
Portfolio turnover rate . . . . . . . . . 8.19% 15.63% 12.27% 37.59%
</TABLE>
See Notes To Financial Statements
8
<PAGE> 10
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
ADVERTISING - 0.8%
Catalina Marketing Corporation* 1,800 $ 164,700
Heritage Media Corporation* 2,500 99,687
AIR TRANSPORT - 1.0%
Air Express International Corp. 3,000 84,750
Atlantic Southeast Airlines, Inc. 2,500 70,625
Comair Holdings, Inc. 4,500 121,500
Fritz Companies, Inc.* 2,000 64,500
APPAREL - 0.5%
Nautica Enterprises, Inc.* 6,000 172,500
BANK - 3.0%
Bank of New York Company, Inc. 2,300 117,875
BayBanks, Inc. 1,000 107,750
City National Corporation 6,000 94,500
First American Corporation 3,700 155,862
First Bank Systems, Inc. 2,000 116,000
Northern Trust Corporation 2,300 132,825
Norwest Corp. 2,576 89,838
Roosevelt Financial Group, Inc. 3,800 73,150
State Street Boston Corporation 2,300 117,300
BEVERAGE - 0.3%
Robert Mondavi Corporation* 3,000 94,500
BIOTECHNOLOGY - 0.3%
Human Genome Sciences, Inc.* 2,500 91,875
BROADCASTING / CABLE TV - 1.9%
A.H. Belo Corporation 2,500 93,125
Clear Channel Communications* 4,500 370,688
Heartland Wireless Commun., Inc.* 3,500 83,125
Westwood One, Inc.* 5,000 76,250
BUILDING MATERIALS - 0.2%
Lafarge Corporation 3,500 70,875
CHEMICAL - 1.8%
Airgas, Inc.* 10,600 201,400
Lilly Industries, Inc. 5,000 85,000
Oil-Dri Corporation America 4,700 69,913
Raychem Corporation 1,500 107,813
Sherwin-Williams Company 2,500 116,250
COMPUTER & PERIPHERALS - 4.8%
3COM Corporation, Inc.* 3,000 137,250
Cabletron Systems, Inc.* 2,000 137,250
Cisco Systems, Inc.* 4,800 271,800
Compaq Computer Corporation* 2,500 122,812
EMC Corporation* 4,300 79,550
Microchip Technology, Inc.* 2,450 60,637
PairGain Technologies, Inc.* 3,000 186,000
SCI Systems, Inc.* 3,000 121,875
Silicon Graphics, Inc.* 3,000 72,000
Sun Microsystems, Inc.* 5,200 306,150
Xilinx, Inc.* 3,300 104,775
COMPUTER SOFTWARE & SERVICES - 13.8%
Adobe Systems, Inc. 3,000 107,625
America Online, Inc.* 3,200 140,000
Applix, Inc.* 3,000 86,250
BMC Software, Inc.* 2,800 167,300
Broderbund Software, Inc.* 1,900 61,275
Business Objects S.A.* 3,000 120,750
Cadence Design Systems, Inc.* 4,500 151,875
CBT Group PLC* 1,500 69,375
Ceridian Corporation* 3,500 176,750
Cognos, Inc.* 4,800 110,400
Davidson & Associates, Inc.* 2,400 72,000
Electronics for Imaging, Inc.* 1,500 104,062
First Data Corporation 2,806 223,428
HBO & Company 4,000 271,000
HCIA, Inc.* 1,500 94,500
Hummingbird Communications Ltd.* 2,500 76,250
Informix Corporation* 4,500 101,250
</TABLE>
See Notes To Financial Statements
9
<PAGE> 11
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES - 13.8% (Continued)
Intuit, Inc.* 2,200 $ 103,950
McAfee Associates, Inc.* 2,600 127,400
Medic Computer Systems, Inc.* 1,200 97,350
Microsoft Corporation* 1,900 228,237
Network General Corporation* 5,000 107,500
Oracle Corporation* 7,500 295,781
Peoplesoft, Inc.* 2,000 142,500
Remedy Corporation* 1,500 109,500
Security Dynamics Tech., Inc.* 2,500 205,625
Shared Medical Systems Corp. 2,500 160,625
Shiva Corporation* 3,000 240,000
Sierra On-Line, Inc.* 3,000 131,625
Softkey International, Inc.* 2,857 54,104
Symantec Corporation* 6,300 78,750
Synopsys, Inc.* 2,000 79,500
System Software Associates, Inc. 3,000 51,000
VeriFone, Inc.* 1,500 63,375
Visio Corporation* 2,800 100,800
Wonderware Corporation* 3,000 56,625
DIVERSIFIED - 1.6%
Alco Standard Corporation 3,000 135,750
Danaher Corporation 2,500 108,750
Service Corp. International 2,600 149,500
Thermo Electron Corp.* 3,000 124,875
DRUG - 2.8%
Amgen, Inc.* 5,600 302,400
Biogen, Inc.* 3,700 203,038
Gilead Sciences, Inc.* 4,000 101,000
Isis Pharmaceuticals, Inc.* 5,500 103,125
Matrix Pharmaceutical, Inc.* 3,700 66,600
Mylan Laboratories, Inc. 3,750 65,156
TheraTech, Inc.* 3,800 73,150
DRUGSTORE - 0.3%
Eckerd Corporation* 4,500 101,812
ELECTRICAL EQUIPMENT - 0.9%
Anixter International, Inc.* 5,000 74,375
FORE Systems, Inc.* 5,000 180,625
Littlefuse, Inc.* 1,500 56,250
ELECTRONICS - 3.9%
ADT Ltd.* 4,500 85,500
Altera Corporation* 1,700 64,600
Checkpoint Systems, Inc.* 4,000 137,500
General Instrument Corporation* 3,200 92,400
Harman International Industries 2,100 103,425
Input/Output, Inc.* 3,000 97,125
Lam Research Corporation* 2,300 59,800
Macromedia* 3,500 76,562
Molex, Inc. 3,750 110,156
S3, Inc.* 4,900 60,331
Stratacom, Inc.* 2,000 112,500
Symbol Technologies, Inc.* 2,600 115,700
Teradyne, Inc.* 3,100 53,475
Ultratech Stepper, Inc.* 3,000 56,250
Vishay Intertechnology, Inc.* 3,307 78,128
ENVIRONMENTAL - 0.8%
Sanifill, Inc.* 2,500 123,125
USA Waste Services, Inc.* 4,500 133,313
FINANCIAL SERVICES - 4.5%
Concord EFS, Inc.* 3,000 106,500
CUC International, Inc.* 4,500 159,750
Finova Group, Inc. 2,500 121,875
First USA, Inc. 2,500 137,500
Franklin Resources, Inc. 2,100 128,100
Green Tree Financial Corporation 4,000 125,000
Medaphis Corporation* 4,000 159,000
Mercury Finance Company 6,000 76,500
Mutual Risk Management, Ltd. 5,066 158,312
Paychex, Inc. 3,000 144,375
Pioneer Group, Inc. 3,000 80,250
United Asset Management Corp. 4,200 102,900
</TABLE>
See Notes To Financial Statements
10
<PAGE> 12
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
FOOD PROCESSING - 0.8%
Goodmark Foods, Inc. 4,000 $ 57,000
Hormel Foods Corporation 3,400 90,950
Tootsie Roll Industries, Inc. 3,060 109,013
FOREIGN TELECOMMUNICATIONS - 1.5%
Ericsson Telephone 10,000 215,000
Reuters Holdings PLC 2,000 145,000
Vodafone Group PLC 4,000 147,500
GROCERY - 0.4%
Safeway, Inc.* 4,400 145,200
HOMEBUILDING - 0.6%
Lennar Corporation 2,600 65,000
Rouse Company 4,900 126,788
HOTEL / GAMING - 2.4%
HFS, Inc.* 7,000 490,000
La Quinta Inns, Inc. 3,000 100,500
Marcus Corporation 2,450 61,556
Mirage Resorts, Inc.* 2,500 133,750
HOUSEHOLD PRODUCTS - 0.6%
Amway Asia Pacific Ltd. 3,000 90,750
Lancaster Colony Corporation 2,500 93,437
INDUSTRIAL SERVICES - 2.7%
Equifax, Inc. 6,200 162,750
Interim Services* 1,500 64,500
Kelly Services, Inc. 2,300 67,275
Manpower, Inc. 2,900 113,825
Primark Corporation* 3,000 97,875
Quintiles Transnational Corporation* 1,500 98,625
Robert Half International, Inc.* 4,000 111,500
Sylvan Learning Systems, Inc.* 2,000 75,500
Unitog Company 3,050 86,163
INSURANCE - 2.4%
AMBAC, Inc. 2,600 135,525
Equitable of Iowa Companies 2,600 92,300
MGIC Investment Corporation 2,000 112,250
Oxford Health Plans, Inc.* 3,200 131,600
Progressive Corporation of Ohio 2,800 129,500
Vesta Insurance Group, Inc. 3,250 108,469
Zurich Reinsurance Centre Hold.* 3,100 97,650
MACHINERY - 1.4%
AGCO Corporation 5,000 138,750
Cascade Corporation 3,200 42,800
Cognex Corporation* 2,500 40,313
Greenfield Industries, Inc. 2,500 82,500
Parker-Hannifin Corporation 2,500 105,938
TriMas Corporation 2,500 58,438
MANUFACTURED HOUSING - 0.4%
Oakwood Homes Corporation 7,000 144,375
MEDICAL SERVICES - 7.5%
ABR Information Services, Inc.* 2,000 100,500
Apria Healthcare Group, Inc.* 3,000 94,125
Health Care & Retirement Corp.* 5,550 131,812
Health Management Associates* 7,425 151,284
Health Management Systems, Inc.* 3,000 95,250
Lincare Holdings, Inc.* 3,300 129,525
MedPartners/Mullikin, Inc.* 4,151 86,652
Mid Atlantic Medical Services, Inc.* 3,600 51,300
Omnicare, Inc. 4,000 106,000
OrNda HealthCorp* 4,500 108,000
Orthodontic Ctrs. of America, Inc.* 2,000 53,000
PacifiCare Health Systems, Inc.* 1,500 101,625
PhyCor, Inc.* 4,500 171,000
Quorum Health Group, Inc.* 5,000 131,875
Sierra Health Services, Inc.* 3,500 110,250
United HealthCare Corporation 4,900 247,450
</TABLE>
See Notes To Financial Statements
11
<PAGE> 13
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
MEDICAL SERVICES - 7.5% (Continued)
Universal Health Services, Inc.* 3,800 $ 99,275
U.S. Healthcare, Inc. 3,050 167,750
Vencor, Inc.* 5,400 164,700
Veterinary Ctrs. of America, Inc.* 4,000 89,500
Vivra, Inc.* 2,500 82,188
MEDICAL SUPPLIES - 3.6%
Boston Scientific Corporation* 2,500 112,500
Cardinal Health, Inc. 2,750 198,344
Diagnostic Products Corporation 3,500 134,750
Guidant Corporation 3,000 147,750
Life Technologies, Inc. 3,500 110,250
Sola International, Inc.* 4,000 116,000
Steris Corporation* 2,070 66,240
Summit Technology, Inc.* 4,500 63,000
Sybron Corporation* 5,000 125,000
VISX, Inc.* 3,000 102,375
METAL FABRICATING - 0.3%
Kennametal, Inc. 2,500 85,000
NATURAL GAS - 0.4%
Sonat, Inc. 3,000 135,000
NEWSPAPER - 0.3%
Central Newspapers, Inc. 2,500 93,750
OFFICE EQUIPMENT & SUPPLIES - 0.4%
Reynolds & Reynolds Company 2,700 143,775
OILFIELD SERVICES - 1.5%
BJ Services Company/Warrants* 1,160 15,370
Camco International, Inc. 3,500 118,562
Pride Petroleum Services, Inc.* 8,000 114,000
Smith International, Inc.* 4,300 129,538
Triton Energy Corporation* 2,500 121,563
PACKAGING & CONTAINER - 0.3%
Sealed Air Corporation* 3,400 114,325
PAPER & FOREST PRODUCTS - 0.4%
Willamette Industries, Inc. 2,300 136,850
PETROLEUM - 2.0%
Apache Corporation 4,000 131,500
Devon Energy Corporation 4,000 98,000
Noble Affiliates, Inc. 3,900 147,225
Tosco Corporation 2,500 125,625
United Meridian Corporation* 4,200 151,200
PRECISION INSTRUMENT - 1.1%
Coherent, Inc.* 2,000 104,000
KLA Instruments Corporation* 2,600 60,450
Tektronix, Inc. 2,000 89,500
Teleflex, Inc. 2,500 119,375
PUBLISHING - 0.4%
Scholastic Corporation* 2,000 124,000
RAILROAD - 0.7%
Kansas City Southern Ind., Inc. 2,300 98,613
Wisconsin Central Transportation* 4,500 146,250
REAL ESTATE INVESTMENT TRUST - 0.6%
National Health Investors, Inc. 2,700 88,425
Security Capital Pacific Trust 4,500 97,875
RECREATION - 2.1%
Callaway Golf Company 2,400 79,800
Carmike Cinemas, Inc.* 6,000 162,000
Carnival Corporation 4,500 129,938
Gaylord Entertainment Company 4,110 115,594
Harley-Davidson, Inc. 3,000 123,000
Sturm, Ruger & Company, Inc. 2,000 93,000
RESTAURANT - 1.1%
Apple South, Inc. 1,950 52,162
Applebee's International, Inc. 3,200 103,600
Outback Steakhouse, Inc.* 3,750 129,316
Sbarro, Inc. 3,000 75,375
</TABLE>
See Notes To Financial Statements
12
<PAGE> 14
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
RETAIL STORE - 6.3%
AutoZone, Inc.* 3,800 $ 132,050
Bed Bath & Beyond, Inc.* 7,000 187,250
Borders Group, Inc.* 3,000 96,750
Circuit City Stores, Inc. 2,800 101,150
CompUSA, Inc.* 2,800 95,550
Corporate Express, Inc.* 2,700 108,000
Dollar General Corporation 7,616 222,768
Gymboree Corporation* 3,000 91,500
Lands' End, Inc.* 5,700 141,075
Men's Wearhouse, Inc.* 3,250 104,812
Micro Warehouse, Inc.* 4,000 80,000
Pep Boys-Manny, Moe & Jack 2,000 68,000
Starbucks Corporation* 4,000 113,000
Tiffany & Company 2,000 146,000
Viking Office Products, Inc.* 6,400 200,800
Williams-Sonoma, Inc.* 4,000 94,500
Zale Corporation* 5,000 84,375
SECURITIES BROKERAGE - 0.9%
Charles Schwab Corporation 6,000 147,000
Investment Technology Group* 6,000 81,000
Raymond James Financial, Inc. 3,500 79,188
SEMICONDUCTOR - 2.2%
Atmel Corporation* 3,400 102,425
International Rectifier Corp.* 4,600 74,750
Linear Technology Corporation 5,400 162,000
LSI Logic Corporation* 2,000 52,000
Maxim Integrated Products, Inc.* 9,000 245,813
SDL, Inc.* 3,000 83,250
SHOE - 0.3%
Wolverine World Wide, Inc. 3,000 97,500
STEEL - 0.3%
Commercial Metals Company 2,500 83,125
TELECOMMUNICATIONS EQUIPMENT - 6.2%
Andrew Corporation* 3,938 211,641
TELECOMMUNICATIONS EQUIPMENT - 6.2% (Cont.)
Ascend Communications, Inc.* 4,000 225,000
Aspect Telecommunications Corp.* 2,000 99,000
Cascade Communications Corp.* 4,500 306,000
Cidco, Inc.* 1,900 66,975
Coherent Commun. Systems Corp.* 3,000 63,750
DSP Communications, Inc.* 3,000 154,125
Glenayre Technologies, Inc.* 2,700 135,000
PictureTel Corporation* 3,000 118,125
Premisys Communications, Inc.* 2,000 122,000
Tellabs, Inc.* 3,200 214,000
U.S. Robotics, Inc.* 4,000 342,000
TELECOMMUNICATIONS SERVICE - 2.0%
Cellular Commun. of Puerto Rico* 3,000 97,500
Centennial Cellular Corporation* 4,500 75,937
CommNet Cellular, Inc.* 4,000 120,000
LCI International, Inc.* 6,400 200,800
United States Cellular Corporation* 2,000 62,000
Vanguard Cellular Systems, Inc.* 5,000 108,750
TEXTILE - 0.3%
Unifi, Inc. 3,000 84,375
THRIFT - 0.4%
JSB Financial Corporation 3,500 115,937
TOYS - 0.4%
Mattel, Inc. 4,125 118,078
TRUCKING & TRANSPORT LEASING - 0.5%
M.S. Carriers, Inc.* 2,900 59,450
Werner Enterprise, Inc. 4,000 104,000
--------------
TOTAL COMMON STOCK - 98.9%
(Cost $23,483,256) $ 32,671,735
==============
</TABLE>
* Securities are non - income producing
See Notes To Financial Statements
13
<PAGE> 15
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
BANK - 10.9%
Banc One Corporation A+ 8.740 09/15/03 $ 100,000 $ 109,302
First Chicago NBD Corporation A 8.100 03/01/02 100,000 105,104
Harris Bankcorp, Inc. A+ 9.375 06/01/01 75,000 82,519
Morgan, J.P. & Company AA 8.500 08/15/03 100,000 107,688
Security Pacific Corporation A 9.750 05/15/99 40,000 43,075
CHEMICAL - 2.7%
duPont, E.I. de Nemours & Co. AA- 6.000 12/01/01 115,000 110,472
COMPUTER & PERIPHERALS - 1.8%
International Business Machines Corp. A 7.250 11/01/02 75,000 76,289
ELECTRIC & GAS UTILITIES - 12.1%
Baltimore Gas & Electric Company A+ 6.125 07/01/03 150,000 142,525
Florida Power Corporation AA- 6.875 02/01/08 70,000 68,461
Northern States Power Co. Minn. AA- 7.375 03/01/02 40,000 40,179
Ontario Hydro AA- 7.450 03/31/13 150,000 150,375
Public Service Co. of Oklahoma A+ 7.250 01/01/99 50,000 50,311
Public Service Electric & Gas A- 7.000 09/01/24 50,000 44,141
ENVIRONMENTAL - 1.1%
Waste Management, Inc. A+ 7.650 03/15/11 45,000 45,611
FINANCIAL SERVICES - 5.0%
BHP Finance USA Ltd. A 7.875 12/01/02 100,000 104,219
General Electric Capital Corporation AAA 7.750 03/15/02 100,000 104,339
FOOD PROCESSING - 2.3%
Archer Daniels Midland Company AA- 7.125 03/01/13 100,000 96,938
FOREIGN GOVERNMENT - 6.4%
Province of Ontario AA- 7.625 06/22/04 100,000 102,969
Province of Quebec A+ 8.800 04/15/03 150,000 162,968
GOVERNMENTAL AGENCY - 1.1%
Tennessee Valley Authority Not Rated 6.125 07/15/03 50,000 47,313
</TABLE>
See Notes To Financial Statements
14
<PAGE> 16
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
INSURANCE - 8.9%
Aetna Life & Casualty Company A- 6.375 08/15/03 $ 110,000 $ 104,809
Allstate Corporation A 7.500 06/15/13 100,000 98,594
CIGNA Corporation BBB+ 8.250 01/01/07 100,000 106,164
Travelers, Inc. A+ 7.625 01/15/97 57,000 57,481
MACHINERY - 5.4%
Caterpillar, Inc. A 9.000 04/15/06 100,000 111,936
Deere & Company A 8.950 06/15/19 100,000 112,678
METALS & MINING - 2.9%
Alcan Aluminum Ltd. A- 5.875 04/01/00 125,000 120,740
NEWSPAPER - 1.5%
Knight-Ridder, Inc. AA- 9.875 04/15/09 50,000 60,784
OFFICE EQUIPMENT & SUPPLIES - 0.8%
Xerox Corporation A 9.750 03/15/00 30,000 32,794
PETROLEUM - 3.4%
Kerr-McGee Corporation A- 7.000 11/01/11 150,000 141,851
RAILROAD - 2.6%
Missouri Pacific Railroad Co. AA- 9.400 12/15/00 100,000 109,118
RETAIL STORE - 6.9%
Sears, Roebuck & Company BBB 9.250 08/01/97 200,000 206,188
Wal-Mart Stores, Inc. AA 8.625 04/01/01 75,000 80,274
SECURITIES BROKERAGE - 7.6%
Lehman Brothers Holdings, Inc. A 8.875 03/01/02 150,000 160,125
Merrill Lynch & Company, Inc. A+ 8.230 04/30/02 150,000 153,515
SEMICONDUCTOR - 3.3%
Texas Instruments, Inc. A 8.750 04/01/07 125,000 138,171
TELECOMMUNICATIONS SERVICE - 7.0%
AT&T Corporation AA 7.750 03/01/07 90,000 93,628
GTE Southwest, Inc. A+ 5.820 12/01/99 100,000 97,125
Pacific Bell Telephone Co. AA- 7.000 07/15/04 100,000 99,156
</TABLE>
See Notes To Financial Statements
15
<PAGE> 17
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
TOBACCO - 2.2%
Philip Morris Companies, Inc. A 6.375 02/01/06 $ 100,000 $ 92,906
U.S. GOVERNMENT - 2.2%
U.S. Treasury 6.875 05/15/06 90,000 90,998
---------------
TOTAL FIXED-INCOME SECURITIES - 98.1%
(Cost $3,975,143) $ 4,063,833
===============
</TABLE>
See Notes To Financial Statements
16
<PAGE> 18
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
ADVERTISING - 0.2%
Catalina Marketing Corporation* 1,000 $ 91,500
Heritage Media Corporation* 1,000 39,875
AEROSPACE / DEFENSE - 1.1%
Boeing Company 1,700 148,112
General Motors Corp. - Class H 1,500 90,187
Loral Corporation 5,000 68,125
McDonnell Douglas Corporation 4,800 234,000
Raytheon Company 3,200 165,200
AIR TRANSPORT - 0.3%
Air Express International Corp. 700 19,775
Atlantic Southeast Airlines, Inc. 1,000 28,250
Comair Holdings, Inc. 1,575 42,525
Pittston Brink's Group 3,000 87,375
APPAREL - 0.1%
Nautica Enterprises, Inc.* 1,800 51,750
AUTO PARTS - 0.2%
Borg-Warner Automotive, Inc. 2,000 79,000
Dana Corporation 1,600 49,600
AUTO & TRUCK - 0.4%
Ford Motor Company 3,500 113,312
General Motors Corporation 2,400 125,700
BANK - 4.9%
Bank of Boston Corporation 1,000 49,500
Bank of New York Company, Inc. 1,400 71,750
BankAmerica Corporation 1,000 75,750
Barnett Banks, Inc. 5,200 317,200
BayBanks, Inc. 700 75,425
Chase Manhattan Corporation 4,840 341,825
City National Corporation 1,100 17,325
First American Corporation 2,200 92,675
First Bank Systems, Inc. 1,300 75,400
First Chicago NBD Corporation 6,335 247,857
First Tennessee National Corp. 5,800 177,625
First Union Corporation 5,800 353,075
BANK - 4.9% (Continued)
J.P. Morgan & Company 2,000 169,250
KeyCorp 4,000 155,000
Mellon Bank Corporation 2,700 153,900
Mercantile Bancorporation, Inc. 1,050 46,725
National City Corporation 2,000 70,250
NationsBank Corporation 4,000 330,500
Northern Trust Corporation 600 34,650
Norwest Corporation 900 31,388
PNC Bank Corporation 4,000 119,000
State Street Boston Corporation 1,200 61,200
Wells Fargo & Company 933 223,104
BEVERAGE - 0.7%
Anheuser-Busch Companies, Inc. 3,700 277,500
Coca-Cola Company 1,000 48,875
PepsiCo, Inc. 3,000 106,500
Robert Mondavi Corporation* 1,500 47,250
BIOTECHNOLOGY - 0.1%
Human Genome Sciences, Inc.* 700 25,725
BROADCASTING / CABLE TV - 0.4%
A.H. Belo Corporation 1,400 52,150
Clear Channel Communications* 1,600 131,800
U.S. West Media Group* 4,000 73,000
Westwood One, Inc.* 700 10,675
BUILDING MATERIALS - 0.2%
Armstrong World Industries, Inc. 1,500 86,437
Lafarge Corporation 1,000 20,250
CHEMICAL - 3.1%
Airgas, Inc.* 6,000 114,000
Crompton & Knowles 1,500 24,937
duPont, E.I. de Nemours & Co. 3,500 276,937
Great Lakes Chemical Corporation 500 31,125
Lilly Industries, Inc. 1,500 25,500
Minnesota Mining & Manufacturing 2,000 138,000
Monsanto Company 17,500 568,750
Oil-Dri Corporation America 1,400 20,825
</TABLE>
See Notes To Financial Statements
17
<PAGE> 19
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
CHEMICAL - 3.1% (Continued)
Olin Corporation 700 $ 62,475
Rohm & Haas Company 1,000 62,750
Sherwin-Williams Company 2,000 93,000
Union Carbide Corporation 2,100 83,475
WD-40 Company 2,800 131,600
Witco Corporation 2,700 92,813
A. Schulman, Inc. 2,000 49,000
B.F. Goodrich Company 2,000 74,750
W.R. Grace & Company 2,500 177,187
COMPUTER & PERIPHERALS - 1.4%
3COM Corporation, Inc.* 1,600 73,200
Cabletron Systems, Inc.* 1,500 102,937
Cisco Systems, Inc.* 4,000 226,500
Compaq Computer Corporation* 1,000 49,125
EMC Corporation* 3,000 55,500
Microchip Technology, Inc.* 1,000 24,750
PairGain Technologies, Inc.* 2,000 124,000
SCI Systems, Inc.* 1,000 40,625
Silicon Graphics, Inc.* 1,500 36,000
Sun Microsystems, Inc.* 1,600 94,200
Xilinx, Inc.* 2,100 66,675
COMPUTER SOFTWARE & SERVICES - 2.7%
Adobe Systems, Inc. 1,200 43,050
America Online, Inc.* 2,000 87,500
Automatic Data Processing, Inc. 4,000 154,500
BMC Software, Inc.* 1,000 59,750
Broderbund Software, Inc.* 1,400 45,150
Business Objects S.A.* 1,400 56,350
Cadence Design Systems, Inc.* 1,350 45,563
Ceridian Corporation* 2,000 101,000
Cognos Incorporated* 2,100 48,300
Davidson & Associates, Inc.* 800 24,000
First Data Corporation 1,244 99,053
HBO & Company 2,000 135,500
Hummingbird Communications Ltd.* 1,000 30,500
Informix Corporation* 1,500 33,750
Intuit, Inc.* 900 42,525
COMPUTER SOFTWARE & SERVICES - 2.7% (Cont.)
Medic Computer Systems, Inc.* 500 40,563
Microsoft Corporation* 1,000 120,125
Oracle Corporation* 3,825 150,848
Peoplesoft, Inc.* 800 57,000
Security Dynamics Tech., Inc.* 700 57,575
Shared Medical Systems Corp. 900 57,825
Shiva Corporation* 1,200 96,000
Sierra On-Line, Inc.* 1,000 43,875
Symantec Corporation* 1,000 12,500
Synopsys, Inc.* 2,000 79,500
Visio Corporation* 1,300 46,800
Wonderware Corporation* 800 15,100
DIVERSIFIED - 1.4%
Alco Standard Corporation 1,800 81,450
AlliedSignal, Inc. 5,100 291,337
Danaher Corporation 1,000 43,500
Premark International, Inc. 1,000 18,500
Service Corp. International 2,100 120,750
Textron, Inc. 1,500 119,813
Thermo Electron Corp.* 1,350 56,194
TRW, Inc. 1,000 89,875
United Technologies Corporation 1,100 126,500
DRUG - 3.3%
American Home Products Corp. 3,400 204,425
Amgen, Inc.* 3,200 172,800
Biogen, Inc.* 2,400 131,700
Bristol-Myers Squibb Company 6,200 558,000
Gilead Sciences, Inc.* 1,000 25,250
Merck & Company, Inc. 8,000 517,000
Mylan Laboratories, Inc. 1,200 20,850
Pfizer, Inc. 3,000 214,125
Schering-Plough Corporation 2,000 125,500
Warner-Lambert Company 3,800 209,000
DRUGSTORE - 0.2%
Eckerd Corporation* 2,000 45,250
Rite Aid Corporation 2,000 59,500
</TABLE>
See Notes To Financial Statements
18
<PAGE> 20
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
ELECTRIC & GAS UTILITIES - 2.9%
Baltimore Gas & Electric Company 5,700 $ 161,737
CMS Energy Corporation 2,300 71,012
Consolidated Edison Co. of N.Y. 1,900 55,575
Duke Power Company 3,400 174,250
Edison International 6,500 114,562
Entergy Corporation 4,000 113,500
Florida Progress Corporation 5,500 191,125
General Public Utilities Corp. 3,600 126,900
Hawaiian Electric Industries, Inc. 2,300 81,650
New England Electric System 1,700 61,838
Northern States Power Company 2,500 123,438
PacifiCorp 8,400 186,900
Public Service of Colorado 4,700 172,725
TECO Energy, Inc. 7,700 194,425
Unicom Corporation* 3,500 97,563
ELECTRICAL EQUIPMENT - 1.9%
Anixter International, Inc.* 1,600 23,800
Duracell International Inc. 3,100 133,687
Emerson Electric Company 2,500 225,937
FORE Systems, Inc.* 2,000 72,250
General Electric Company 8,200 711,350
Hubbell, Inc. 1,000 66,250
Littlefuse, Inc.* 1,000 37,500
ELECTRONICS - 0.7%
Altera Corporation* 1,000 38,000
Checkpoint Systems, Inc.* 1,500 51,562
General Instrument Corporation* 1,500 43,312
Harman International Industries 1,050 51,712
Lam Research Corporation* 1,300 33,800
Macromedia* 1,500 32,812
Molex, Inc. 1,875 55,078
Symbol Technologies, Inc.* 2,000 89,000
Ultratech Stepper, Inc.* 1,000 18,750
Vishay Intertechnology, Inc.* 1,575 37,209
ENVIRONMENTAL - 0.4%
Browning-Ferris Industries, Inc. 3,000 87,000
USA Waste Services, Inc.* 1,800 53,325
WMX Technologies, Inc. 4,500 147,375
FINANCIAL SERVICES - 2.3%
American Express Company 5,000 223,125
Countrywide Credit Industries, Inc. 4,000 99,000
CUC International, Inc.* 2,850 101,175
Dean Witter, Discover & Company 3,500 200,375
Finova Group, Inc. 1,000 48,750
First USA, Inc. 1,400 77,000
Franklin Resources, Inc. 1,000 61,000
Green Tree Financial Corporation 2,000 62,500
H & R Block, Inc. 1,300 42,575
Household International, Inc. 1,000 76,000
Medaphis Corporation* 1,400 55,650
Mercury Finance Company 3,000 38,250
Mutual Risk Management, Ltd. 3,333 104,156
Paychex, Inc. 1,500 72,188
Pioneer Group, Inc. 2,000 53,500
Travelers, Inc. 2,700 123,188
United Asset Management Corp. 2,000 49,000
FOOD PROCESSING - 0.8%
Goodmark Foods, Inc. 5,200 74,100
Hershey Foods Corp. 1,400 102,725
Hormel Foods Corporation 1,000 26,750
Kellogg Company 1,500 109,875
Sara Lee Corporation 4,500 146,250
Tootsie Roll Industries, Inc. 1,200 42,750
FOREIGN TELECOMMUNICATIONS - 0.4%
Ericsson Telephone 6,400 137,600
Reuters Holdings PLC 1,000 72,500
Vodafone Group PLC 2,100 77,438
GROCERY - 0.2%
Safeway, Inc.* 3,200 105,600
HOMEBUILDING - 0.3%
Lennar Corporation 1,700 42,500
Rouse Company 7,000 181,125
</TABLE>
See Notes To Financial Statements
19
<PAGE> 21
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
HOTEL / GAMING - 0.4%
HFS, Inc.* 2,000 $ 140,000
La Quinta Inns, Inc. 1,000 33,500
Marcus Corporation 1,950 48,994
Mirage Resorts, Inc.* 1,000 53,500
HOUSEHOLD PRODUCTS - 1.3%
Amway Asia Pacific Ltd. 1,000 30,250
Clorox Company 1,900 168,387
Colgate-Palmolive Company 3,100 262,725
Kimberly-Clark Corporation 2,900 224,025
Lancaster Colony Corporation 1,000 37,375
Proctor & Gamble Company 1,200 108,750
Tupperware Corporation* 1,000 42,250
INDUSTRIAL SERVICES - 0.7%
Equifax, Inc. 4,600 120,750
Interim Services, Inc.* 616 26,488
Kelly Services, Inc. 700 20,475
Manpower, Inc. 1,500 58,875
PHH Corporation 1,600 91,200
Primark Corporation* 800 26,100
Quintiles Transnational Corporation* 500 32,875
Sylvan Learning Systems* 2,300 86,825
Unitog Company 1,000 28,250
INSURANCE - 2.0%
AFLAC, Inc. 2,400 71,700
Allstate Corporation 3,615 164,934
AMBAC, Inc. 1,300 67,762
American International Group, Inc. 4,125 406,828
Aon Corporation 3,500 177,625
Equitable of Iowa Companies 2,100 74,550
MBIA, Inc. 1,500 116,812
MGIC Investment Corporation 1,000 56,125
Oxford Health Plans, Inc.* 1,600 65,800
Progressive Corporation of Ohio 1,000 46,250
Vesta Insurance Group, Inc. 1,000 33,375
Zurich Reinsurance Centre Hold.* 1,000 31,500
MACHINERY - 1.3%
AGCO Corporation 2,000 55,500
Alamo Group, Inc. 1,500 27,375
Briggs & Stratton Corporation 1,200 49,350
Caterpillar, Inc. 1,800 121,950
Deere & Company 4,200 168,000
Dover Corporation 5,200 239,200
GATX Corporation 700 33,775
Greenfield Industries, Inc. 900 29,700
Parker-Hannifin Corporation 1,050 44,494
TriMas Corporation 1,500 35,063
Trinova Corporation 2,100 70,088
MANUFACTURED HOUSING - 0.1%
Oakwood Homes Corporation 2,000 41,250
MEDICAL SERVICES - 1.6%
ABR Information Services, Inc.* 800 40,200
Apria Healthcare Group Inc.* 1,000 31,375
Health Care & Retirement Corp.* 5,850 138,937
Health Management Associates* 3,712 75,632
Health Management Systems, Inc.* 1,000 31,750
Lincare Holdings, Inc.* 1,000 39,250
MedPartners/Mullikin, Inc.* 1,000 20,875
Mid Atlantic Medical Services, Inc.* 1,300 18,525
Omnicare, Inc. 2,800 74,200
OrNda HealthCorp* 1,000 24,000
Orthodontic Ctrs. of America, Inc.* 700 18,550
PacifiCare Health Systems, Inc.* 700 47,425
PhyCor, Inc.* 1,500 57,000
Quorum Health Group, Inc.* 1,000 26,375
Sierra Health Services, Inc.* 1,200 37,800
United HealthCare Corporation 2,300 116,150
Universal Health Services, Inc.* 2,200 57,475
U.S. Healthcare, Inc. 1,500 82,500
Vencor, Inc.* 3,100 94,550
Veterinary Ctrs. of America, Inc.* 1,000 22,375
</TABLE>
See Notes To Financial Statements
20
<PAGE> 22
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
MEDICAL SUPPLIES - 1.3%
Abbott Laboratories 3,600 $ 156,600
Baxter International, Inc. 2,000 94,500
Boston Scientific Corporation* 1,000 45,000
Cardinal Health, Inc. 1,200 86,550
Diagnostic Products Corporation 1,000 38,500
Guidant Corporation 1,000 49,250
Johnson & Johnson 2,280 112,860
Life Technologies, Inc. 1,200 37,800
Medtronic, Inc. 1,800 100,800
Sola International, Inc.* 1,000 29,000
Steris Corporation* 690 22,080
Summit Technology, Inc.* 1,050 14,700
Sybron Corporation* 2,000 50,000
VISX, Inc.* 1,000 34,125
METAL FABRICATING - 0.1%
Kennametal, Inc. 1,000 34,000
Trinity Industries, Inc. 800 27,200
METALS & MINING - 0.5%
Aluminum Company of America 4,000 229,500
Inco Limited 2,000 64,500
Placer Dome, Inc. 2,500 59,688
NATURAL GAS - 0.7%
Enron Corporation 5,400 220,725
Panhandle Eastern Corporation 5,300 174,238
Sonat, Inc. 1,800 81,000
NEWSPAPER - 0.3%
Central Newspapers, Inc. 1,000 37,500
Gannett Company, Inc. 1,900 134,425
OFFICE EQUIPMENT & SUPPLIES - 0.7%
Pitney Bowes, Inc. 2,000 95,500
Reynolds & Reynolds Company 2,800 149,100
Xerox Corporation 4,500 240,750
OILFIELD SERVICES - 0.9%
Baker Hughes, Inc. 4,000 131,500
BJ Services Company/Warrants* 1,200 15,900
Camco International Inc. 1,000 33,875
Halliburton Company 3,500 194,250
Pride Petroleum Services, Inc.* 2,800 39,900
Schlumberger, Ltd. 1,000 84,250
Smith International, Inc.* 2,300 69,288
Triton Energy Corporation* 700 34,038
PACKAGING & CONTAINER - 0.1%
Sealed Air Corporation* 2,000 67,250
PAPER & FOREST PRODUCTS - 0.7%
International Paper Company 8,000 295,000
Weyerhaeuser Company 2,200 93,500
Willamette Industries, Inc. 800 47,600
PETROLEUM - 4.4%
Amerada Hess Corporation 600 32,175
Amoco Corporation 2,400 173,700
Apache Corporation 1,800 59,175
Ashland Oil, Inc. 1,800 71,325
Atlantic Richfield Company 1,000 118,500
British Petroleum Co. PLC 2,000 213,750
Devon Energy Corporation 1,500 36,750
Exxon Corporation 6,300 547,312
Mobil Corporation 5,000 561,875
Noble Affiliates, Inc. 2,800 105,700
Royal Dutch/Shell Transport Group 3,400 522,750
Sun Company, Inc. 4,910 149,141
Tosco Corporation 1,000 50,250
Union Texas Petroleum Holdings 6,700 130,650
United Meridian Corporation* 1,000 36,000
USX-Marathon Group 4,500 90,563
</TABLE>
See Notes To Financial Statements
21
<PAGE> 23
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
PRECISION INSTRUMENT - 0.5%
Coherent, Inc.* 600 $ 31,200
Eastman Kodak Company 2,900 225,475
Tektronix, Inc. 1,000 44,750
Teleflex, Inc. 1,000 47,750
PUBLISHING - 0.6%
McGraw-Hill, Inc. 4,000 183,000
Reader's Digest Association, Inc. 1,000 42,500
Scholastic Corporation* 1,000 62,000
Value Line, Inc. 2,500 85,000
RAILROAD - 0.6%
Conrail, Inc. 1,500 99,563
Kansas City Southern Ind., Inc. 2,000 85,750
Union Pacific Corporation 2,000 139,750
Wisconsin Central Transportation* 3,000 97,500
REAL ESTATE INVESTMENT TRUST - 1.4%
DeBartolo Realty Corporation 5,000 80,625
Federal Realty Investment Trust 4,800 108,000
Meditrust Corporation 3,500 116,813
National Health Investors, Inc. 1,600 52,400
Nationwide Health Properties, Inc. 6,000 126,750
Security Capital Industrial Trust 7,300 128,663
Security Capital Pacific Trust 2,000 43,500
Starwood Lodging Trust 4,600 167,325
Weingarten Realty Investors 2,200 85,525
RECREATION - 1.0%
Brunswick Corporation 3,000 60,000
Callaway Golf Company 1,400 46,550
Carmike Cinemas, Inc.* 3,000 81,000
Carnival Corporation 2,000 57,750
Gaylord Entertainment Company 1,102 30,994
Harley-Davidson, Inc. 2,000 82,000
Time Warner, Inc. 1,200 47,100
Walt Disney Company 4,298 270,237
RESTAURANT - 0.6%
Apple South, Inc. 1,500 40,125
McDonald's Corporation 6,000 279,750
Outback Steakhouse, Inc.* 2,250 77,590
RETAIL STORE - 1.8%
AutoZone, Inc.* 1,000 34,750
Bed Bath & Beyond, Inc.* 5,400 144,450
Circuit City Stores, Inc. 2,200 79,475
Dollar General Corporation 5,000 146,250
J.C. Penney Company 1,100 57,750
Men's Wearhouse, Inc.* 1,500 48,375
Micro Warehouse Inc.* 1,000 20,000
Pep Boys-Manny, Moe & Jack 1,000 34,000
Sears, Roebuck & Company 3,900 189,638
Starbucks Corporation* 4,000 113,000
Tandy Corporation 3,100 146,863
Viking Office Products, Inc.* 4,400 138,050
Zale Corporation* 1,000 16,875
SECURITIES BROKERAGE - 0.3%
Bear Stearns Companies, Inc. 2,660 62,834
Charles Schwab Corporation 3,000 73,500
Investment Technology Group* 1,000 13,500
Merrill Lynch & Company, Inc. 1,200 78,150
SEMICONDUCTOR - 0.9%
Atmel Corporation* 2,000 60,250
Intel Corporation 2,400 176,250
International Rectifier Corp.* 2,000 32,500
Linear Technology Corporation 2,200 66,000
Maxim Integrated Products, Inc.* 3,400 92,862
SDL, Inc.* 1,500 41,625
Texas Instruments, Inc. 2,400 119,700
SHOE - 0.1%
Wolverine World Wide, Inc. 1,050 34,125
</TABLE>
See Notes To Financial Statements
22
<PAGE> 24
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
Market
Common Stock Shares Value
- -------------------------------------------------------- -------- --------------
<S> <C> <C>
STEEL - 0.3%
Nucor Corporation 2,300 $ 116,438
Worthington Industries 4,000 83,500
TELECOMMUNICATIONS EQUIPMENT - 1.1%
Andrew Corporation* 1,575 84,656
Ascend Communications, Inc.* 1,000 56,250
Aspect Telecommunications Corp.* 1,000 49,500
Cascade Communications Corp.* 1,500 102,000
Cidco, Inc.* 800 28,200
Coherent Commun. Systems Corp.* 500 10,625
DSP Communications, Inc.* 800 41,100
Glenayre Technologies, Inc.* 1,000 50,000
PictureTel Corporation* 1,000 39,375
Tellabs, Inc.* 1,200 80,250
U.S. Robotics, Inc.* 2,400 205,200
TELECOMMUNICATIONS SERVICE - 3.3%
ALLTEL Corporation 2,000 61,500
Ameritech Corporation 3,000 178,125
AT&T Corporation 1,500 93,000
Bell Atlantic Corporation 4,100 261,375
BellSouth Corporation 10,000 420,000
Cellular Commun. of Puerto Rico* 1,000 32,500
Centennial Cellular Corporation* 1,000 16,875
Cincinnati Bell Inc. 2,000 104,250
Frontier Corporation 1,600 49,000
GTE Corporation 11,500 514,625
LCI International, Inc.* 3,000 94,125
SBC Communications, Inc. 5,900 290,575
United States Cellular Corporation* 600 18,600
Vanguard Cellular Systems, Inc.* 1,000 21,750
TEXTILES - 0.1%
Unifi, Inc. 1,300 36,563
THRIFT - 0.5%
Federal Home Loan Mortgage Corp. 1,000 85,500
Federal National Mortgage Assoc. 6,800 227,800
JSB Financial Corporation 1,000 33,125
TIRE & RUBBER - 0.2%
Goodyear Tire & Rubber Company 2,600 124,800
TOBACCO - 0.8%
American Brands, Inc. 2,000 90,750
Philip Morris Companies, Inc. 4,300 447,738
TOILETRIES / COSMETICS - 0.2%
Gillette Company 2,600 162,175
TOYS - 0.1%
Mattel, Inc. 3,125 89,453
TRUCKING & TRANSPORT LEASING - 0.1%
M.S. Carriers, Inc.* 1,000 20,500
Werner Enterprise, Inc. 2,100 54,600
-------------
TOTAL COMMON STOCK - 62.2%
(Cost $28,410,825) $ 41,060,040
==============
</TABLE>
* Securities are non - income producing
See Notes To Financial Statements
23
<PAGE> 25
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
AEROSPACE / DEFENSE - 0.3%
Lockheed Corporation A- 9.375 10/15/99 $ 100,000 $ 107,596
Rockwell International Corp. AA- 8.875 09/15/99 100,000 106,375
AUTO PARTS - 0.7%
Eaton Corporation A 7.000 04/01/11 500,000 484,063
AUTO & TRUCK - 0.8%
General Motors Corporation A- 9.125 07/15/01 500,000 544,219
BANK - 4.9%
Bankers Trust New York Corp. A 9.500 06/14/00 250,000 273,407
Chase Manhattan Corp. A- 6.750 08/15/08 400,000 377,125
First Chicago NBD Corporation A 8.100 03/01/02 500,000 525,520
First Union Corporation A- 9.450 06/15/99 100,000 107,139
First Union Corporation A- 8.000 08/15/09 500,000 511,361
Morgan, J.P. & Company AA 8.500 08/15/03 500,000 538,438
NationsBank Corporation A- 6.500 03/15/06 500,000 469,219
Royal Bank of Scotland A+ 6.375 02/01/11 500,000 445,014
CHEMICAL - 0.9%
Monsanto Company A 8.875 12/15/09 500,000 565,626
DIVERSIFIED - 0.8%
Whitman Corporation BBB+ 8.250 02/15/07 500,000 525,058
ELECTRIC & GAS UTILITIES - 5.4%
Alabama Power Company A+ 8.500 05/01/22 500,000 513,550
Duke Power Company AA- 3.675 03/01/08 500,000 464,450
Florida Power & Light Company AA- 7.875 01/01/13 500,000 504,526
Georgia Power Company A+ 7.625 03/01/23 450,000 433,555
Hydro Quebec A+ 7.000 03/01/05 500,000 484,980
Potomac Edison Company A+ 7.750 05/01/25 500,000 491,425
Public Service Electric & Gas A- 7.000 09/01/24 200,000 176,563
Virginia Electric & Power Company A 8.000 03/01/04 500,000 526,517
</TABLE>
See Notes To Financial Statements
24
<PAGE> 26
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 3.4%
Associated Corporation of North America AA- 8.700 01/01/97 $ 200,000 $ 202,688
Fairfax Financial Holdings BBB+ 8.250 10/01/15 500,000 494,530
Ford Holdings, Inc. A+ 9.250 03/01/00 475,000 508,547
General Electric Capital Corporation AAA 7.750 03/15/02 500,000 521,696
Loews Corporation AA- 8.250 01/15/07 500,000 517,644
FOOD PROCESSING - 0.7%
Nabisco, Inc. BBB 7.050 07/15/07 500,000 477,969
FOREIGN GOVERNMENT - 2.2%
Province of Nova Scotia A- 7.250 07/27/13 500,000 483,438
Province of Quebec A+ 8.800 04/15/03 350,000 380,259
Province of Saskatchewan BBB+ 9.375 12/15/20 500,000 576,945
GOVERNMENTAL AGENCY - 0.7%
Federal National Mortgage Association Not Rated 5.520 04/13/98 500,000 491,831
HOTEL / GAMING - 0.7%
ITT Corporation BBB 7.375 11/15/15 500,000 478,299
INSURANCE - 1.9%
Chubb Corporation AA+ 8.750 11/15/99 80,000 83,025
CIGNA Corporation BBB+ 8.250 01/01/07 500,000 530,822
Farmers Group, Inc. A 8.250 07/15/96 200,000 200,156
Metropolitan Life Insurance Co.* AA 7.450 11/01/23 450,000 410,009
MEDICAL SUPPLIES - 0.7%
Cardinal Health, Inc. A- 6.000 01/15/06 500,000 455,782
METALS & MINING - 0.7%
Placer Dome, Inc. BBB 7.750 06/15/15 500,000 468,934
NATURAL GAS - 0.6%
Tennessee Gas Pipeline Company BBB- 6.000 12/15/11 500,000 410,943
</TABLE>
See Notes To Financial Statements
25
<PAGE> 27
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
NEWSPAPER - 0.7%
Knight-Ridder, Inc. AA- 9.875 04/15/09 $ 100,000 $ 121,569
Tribune Company A+ 8.450 02/25/98 300,000 309,502
OFFICE EQUIPMENT & SUPPLIES - 0.5%
Xerox Corporation A 9.750 03/15/00 200,000 218,625
Xerox Corporation A 9.200 07/15/99 100,000 100,413
PACKAGING & CONTAINER - 0.6%
Crown Cork & Seal Company, Inc. BBB+ 8.375 01/15/05 390,000 416,253
PETROLEUM - 1.2%
Atlantic Richfield Company A 8.500 04/01/12 250,000 274,922
Louisiana Land & Exploration Co. BBB 7.625 04/15/13 500,000 501,935
RESTAURANT - 0.7%
Darden Restaurants, Inc. BBB+ 7.125 02/01/16 500,000 447,030
RETAIL STORE - 1.3%
Dayton Hudson Corporation BBB+ 9.625 02/01/08 200,000 226,813
Kmart Corporation BBB 8.125 12/01/06 500,000 435,000
Sears, Roebuck & Company BBB 8.550 08/01/96 100,000 100,188
Sears, Roebuck & Company BBB 9.000 09/15/96 100,000 100,585
SECURITIES BROKERAGE - 0.5%
Salomon, Inc. BBB 9.450 03/15/98 300,000 312,999
TELECOMMUNICATIONS SERVICE - 2.6%
AT&T Corporation AA 7.125 01/15/02 500,000 505,782
Michigan Bell Telephone AAA 7.500 02/15/23 500,000 486,407
NYNEX Corporation A 7.375 12/15/11 250,000 242,956
Southwestern Bell Telephone Company AA 7.375 05/01/12 500,000 485,313
</TABLE>
See Notes To Financial Statements
26
<PAGE> 28
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
TOBACCO - 0.7%
Philip Morris Companies, Inc. A 9.000 01/01/01 $ 400,000 $ 429,876
U.S. GOVERNMENT - 1.6%
U.S. Treasury 6.500 08/15/05 500,000 492,813
U.S. Treasury 7.875 11/15/04 500,000 537,422
---------------
TOTAL FIXED-INCOME SECURITIES - 35.8%
(Cost $23,686,469) 23,615,646
TOTAL COMMON STOCK - 62.2%
(Cost $28,410,825) 41,060,040
---------------
TOTAL INVESTMENTS IN SECURITIES - 98.0%
(Cost $52,097,294) $ 64,675,686
===============
</TABLE>
*Security exempt from registration under Rule 144A of the Securities Act of 1933
See Notes To Financial Statements
27
<PAGE> 29
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
AIR TRANSPORT - 2.2%
Federal Express Corporation BBB 9.650 06/15/12 $ 25,000 $ 28,649
BANK - 6.0%
Chase Manhattan Corp. A- 7.625 01/15/03 25,000 25,679
NationsBank Corporation A- 7.750 08/15/15 25,000 25,031
Westpac Banking Corporation A 9.125 08/15/01 25,000 27,266
BEVERAGE - 2.0%
Coca-Cola Enterprises, Inc. AA- 8.000 09/15/22 25,000 26,223
CHEMICAL - 2.2%
Monsanto Company A 8.700 10/15/21 25,000 28,055
COMPUTERS & PERIPHERALS - 1.9%
Digital Equipment Corporation BB+ 8.625 11/01/12 25,000 24,956
DIVERSIFIED - 4.5%
AlliedSignal, Inc. A 9.500 06/01/16 25,000 30,116
United Technologies Corporation A+ 8.750 03/01/21 25,000 28,211
ELECTRIC & GAS UTILITIES - 18.1%
Consolidated Edison Co. of N.Y., Inc. A+ 7.375 09/01/05 25,000 24,870
Florida Power Corporation AA- 8.625 11/01/21 50,000 54,013
FPL Group Capital, Inc. A+ 7.625 05/01/13 25,000 24,568
Houston Lighting & Power Co. A 8.750 03/01/22 30,000 31,394
Hydro Quebec A+ 8.400 01/15/22 50,000 52,469
Nevada Power Company BBB 8.500 01/01/23 25,000 25,617
Texas Utilities Company BBB+ 6.750 03/01/03 25,000 24,393
ELECTRICAL EQUIPMENT - 3.7%
Philips Electronics N.V. BBB+ 7.250 08/15/13 25,000 23,906
Westinghouse Electric Corp. B+ 8.625 08/01/12 25,000 24,187
ENVIRONMENTAL - 2.0%
Laidlaw, Inc. BBB+ 8.250 05/15/23 25,000 25,442
</TABLE>
See Notes To Financial Statements
28
<PAGE> 30
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 8.3%
Barclays North American Capital Corp. AA- 9.750 05/15/21 $ 25,000 $ 28,098
Dean Witter Discover & Company A 6.750 10/15/13 40,000 36,375
Ford Motor Credit Corporation A+ 6.375 11/05/08 25,000 22,773
Loews Corporation AA- 7.000 10/15/23 25,000 22,103
FOOD PROCESSING - 4.9%
Borden, Inc. BBB- 9.250 06/15/19 25,000 24,985
Dole Food Company, Inc. BBB- 7.875 07/15/13 40,000 38,943
FOREIGN GOVERNMENT - 4.2%
Province of Ontario AA- 7.375 01/27/03 25,000 25,508
Province of Saskatchewan BBB+ 9.375 12/15/20 25,000 28,847
INSURANCE - 5.4%
CIGNA Corporation BBB+ 7.400 01/15/03 25,000 25,128
Metropolitan Life Insurance Co.* AA 7.450 11/01/23 50,000 45,556
MACHINERY - 2.1%
Caterpillar, Inc. A 9.750 06/01/19 25,000 27,597
METALS & MINING - 2.0%
Alcan Aluminum Ltd. A- 8.875 01/15/22 25,000 26,294
PAPER & FOREST PRODUCTS - 2.0%
Georgia-Pacific Corporation BBB- 9.125 07/01/22 25,000 26,055
PETROLEUM - 3.7%
NOVA Gas Transmission A- 7.875 04/01/23 25,000 24,875
OXY USA, Inc. BBB 7.000 04/15/11 25,000 22,712
RECREATION - 1.8%
Brunswick Corporation BBB+ 7.375 09/01/23 25,000 23,576
RETAIL STORE - 5.6%
Dayton Hudson Corporation BBB+ 10.000 01/01/11 20,000 23,800
Kmart Corporation BBB 8.375 07/01/22 25,000 20,386
Sears, Roebuck & Company BBB 9.375 11/01/11 25,000 28,993
</TABLE>
See Notes To Financial Statements
29
<PAGE> 31
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Coupon Maturity Amount Value
- ---------------------------------------------- --------- --------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 4.1%
Lehman Brothers Holdings, Inc. A 7.625 07/15/99 $ 25,000 $ 25,430
Salomon, Inc. BBB 6.750 01/15/06 30,000 27,564
TELECOMMUNICATIONS SERVICE - 7.9%
Bell Telephone Co. Pennsylvania AA 7.500 05/01/13 50,000 49,326
NYNEX Corporation A 7.000 06/15/13 30,000 28,763
Southwestern Bell Telephone Company AA 7.375 05/01/12 25,000 24,266
U. S. GOVERNMENT - 2.6%
U.S. Treasury 5.750 08/15/03 35,000 33,332
---------------
TOTAL FIXED-INCOME SECURITIES - 97.2%
(Cost $1,294,701) $ 1,266,330
===============
</TABLE>
*Security exempt from registration under Rule 144A of the Securities Act of 1933
See Notes To Financial Statements
30
<PAGE> 32
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 0.3%
Heritage Media Corporation BB- 06/15/02 11.000 $ 500,000 $ 530,000
AEROSPACE / DEFENSE - 1.7%
AAR Corporation BBB- 10/15/03 7.250 500,000 476,790
Coltec Industries, Inc. BB- 04/01/02 10.250 500,000 525,000
Lockheed Corporation A+ 03/15/23 7.875 500,000 504,691
McDonnell Douglas Corporation BBB 04/01/12 9.750 1,000,000 1,185,000
AIR TRANSPORT - 2.2%
AMR Corporation BB+ 08/01/12 9.000 1,000,000 1,083,438
AMR Corporation BB+ 03/15/00 9.750 100,000 108,500
Delta Air Lines, Inc. BB 02/01/11 10.375 500,000 598,594
Federal Express Corporation BBB 01/01/15 7.630 500,000 499,946
United Airlines, Inc. BB 07/15/21 10.250 500,000 581,250
United Airlines, Inc. BB 08/15/21 9.750 500,000 569,688
APPAREL - 1.5%
Fruit of the Loom, Inc. BBB+ 03/15/11 7.000 1,000,000 900,001
Phillips-Van Heusen Corp. BBB 11/15/23 7.750 1,000,000 920,671
Platex Family Products Corp. B+ 12/15/03 9.000 500,000 467,500
AUTO PARTS - 0.6%
JPS Automotive Products Corp. B 06/15/01 11.125 500,000 497,500
Walbro Corporation B+ 07/15/05 9.875 500,000 495,418
AUTO & TRUCK - 1.1%
Ford Motor Company A+ 11/15/22 8.875 1,000,000 1,079,864
General Motors Corporation A- 04/15/16 8.125 700,000 697,157
BANK - 6.5%
Banc One Corporation A+ 07/15/25 7.750 1,000,000 997,501
Bank of Boston Corporation BBB 12/01/05 6.625 1,000,000 947,813
Bankers Trust New York Corp. A- 11/15/15 7.500 1,500,000 1,440,939
Chase Manhattan Corp. A- 10/15/08 6.125 1,000,000 892,813
Citicorp A 02/01/16 10.500 199,000 209,371
Comerica Bank A- 12/01/13 7.125 1,000,000 900,630
KeyCorp BBB+ 03/15/06 6.750 1,000,000 953,751
</TABLE>
See Notes To Financial Statements
31
<PAGE> 33
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
BANK - 6.5% (Continued)
NCNB Corporation A- 07/15/15 10.200 $ 1,000,000 $ 1,239,064
Republic New York Corporation AA- 05/15/21 9.125 1,000,000 1,153,126
Royal Bank of Scotland A+ 02/01/11 6.375 1,000,000 890,029
Westpac Banking Corporation A 08/15/01 9.125 500,000 545,313
BEVERAGE - 0.3%
Anheuser Busch Companies, Inc. AA- 03/01/17 8.500 386,000 398,581
BROADCASTING / CABLE TV - 4.3%
Cablevision Industries Corp. BB- 01/30/02 10.750 400,000 432,000
Century Communications Corp. BB- 03/01/05 9.500 1,000,000 978,439
Century Communications Corp. BB- 02/15/02 9.750 250,000 248,750
Comcast Cablevision B+ 05/15/05 9.375 500,000 485,000
Comcast Cablevision B+ 01/15/08 9.500 500,000 488,594
Continental Cablevision, Inc. BB+ 08/01/13 9.500 500,000 542,500
Jones Intercable, Inc. B+ 07/15/04 11.500 250,000 271,250
Jones Intercable, Inc. B+ 03/01/08 10.500 200,000 213,962
Sinclair Broadcast Group, Inc. B 09/30/05 10.000 500,000 481,250
Sinclair Broadcast Group, Inc. B 12/15/03 10.000 575,000 554,995
Tele-Communications, Inc. BBB- 02/15/23 8.750 500,000 473,126
Tele-Communications, Inc. BBB- 01/15/23 9.250 760,000 758,576
Turner Broadcasting System, Inc. BB+ 07/01/13 8.750 750,000 712,500
BUILDING - 1.9%
Continental Homes Holding Corporation B+ 04/15/06 10.000 500,000 496,471
Ryland Group BB- 07/15/02 10.500 1,050,000 1,071,000
Standard Pacific Corporation BB 03/01/00 10.500 300,000 301,500
Toll Corporation BB- 03/15/02 10.500 550,000 569,250
U.S. Home Corporation BB- 06/15/03 9.750 500,000 497,500
BUILDING MATERIALS - 0.3%
Schuller International Group BB- 12/15/04 10.875 500,000 536,250
CHEMICAL - 2.4%
Arcadian Partners, L.P. BB- 05/01/05 10.750 500,000 537,500
Borden Chemicals and Plastics, L.P. BB+ 05/01/05 9.500 500,000 495,000
duPont, E.I. de Nemours & Co. AA- 01/15/22 8.250 1,000,000 1,031,370
Union Carbide Chemicals & Plastics Co. BBB 04/01/23 7.875 600,000 588,000
Viridian, Inc. BB- 04/01/03 9.750 1,000,000 1,040,000
</TABLE>
See Notes To Financial Statements
32
<PAGE> 34
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
COMPUTER & PERIPHERALS - 1.5%
Digital Equipment Corporation BB+ 11/01/12 8.625 $ 1,200,000 $ 1,197,886
International Business Machines Corp. A 11/01/19 8.375 1,000,000 1,086,710
DIVERSIFIED - 0.7%
Tenneco, Inc. BBB- 11/15/12 9.000 500,000 545,059
Textron, Inc. BBB 07/01/22 8.750 581,000 588,632
ELECTRIC & GAS UTILITIES - 11.2%
Alabama Power Company A+ 12/01/24 9.000 1,000,000 1,069,356
Cleveland Electric Illuminating Company BB 03/01/17 9.375 500,000 462,657
Duke Power Company AA- 03/01/22 8.625 500,000 521,172
Florida Power & Light Company AA- 01/01/13 7.875 500,000 504,526
FPL Group Capital, Inc. A+ 05/01/13 7.625 500,000 491,361
Georgia Power Company A+ 02/01/23 7.950 1,000,000 986,831
Hydro Quebec A+ 01/15/22 8.400 800,000 839,501
Illinois Power Co. BBB 02/15/23 8.000 1,000,000 965,535
Indianapolis Power & Light Co. AA- 02/01/24 7.050 1,000,000 923,570
Long Island Lighting Company BB+ 07/15/19 8.900 473,000 434,717
Midland Cogeneration Venture BB- 07/23/02 10.330 415,000 430,599
Monongahela Power A+ 06/01/22 8.500 1,500,000 1,540,660
New Orleans Public Service, Inc. BBB 03/01/23 8.000 600,000 590,740
Northern Illinois Gas Company AA 08/15/21 8.875 1,000,000 1,055,124
Philadelphia Electric Company BBB+ 09/01/22 8.250 1,000,000 989,063
Potomac Edison Company A+ 06/01/24 8.000 1,000,000 1,005,595
Potomac Electric Power Company A 06/01/21 9.000 1,000,000 1,072,672
Public Service Electric & Gas A- 09/01/24 7.000 1,000,000 882,814
Southern Cal Edison A+ 12/01/17 8.375 655,000 661,755
Virginia Electric & Power Company A 10/01/24 8.625 1,000,000 1,058,126
West Penn Power Company A+ 08/01/24 8.125 1,000,000 1,038,422
ELECTRIC EQUIPMENT - 1.7%
Essex Group, Inc. B+ 05/01/03 10.000 1,000,000 1,022,500
Philips Electronics N.V. BBB+ 08/15/13 7.250 1,000,000 956,251
Westinghouse Electric Corp. B+ 08/01/12 8.625 375,000 362,813
Westinghouse Electric Corp. B+ 06/01/01 8.875 250,000 253,367
ELECTRONICS - 0.7%
ADT Operations, Inc. BB+ 08/01/03 9.250 500,000 515,000
Rogers Communications, Inc. BB- 04/15/04 10.875 500,000 507,500
</TABLE>
See Notes To Financial Statements
33
<PAGE> 35
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
ENVIRONMENTAL - 0.7%
Laidlaw, Inc. BBB+ 05/15/23 8.250 $ 1,000,000 $ 1,017,664
FINANCIAL SERVICES - 3.3%
Auburn Hills Trust A- 05/01/20 12.000 400,000 572,064
CRA Finance USA, Ltd. AA- 12/01/13 7.125 500,000 478,140
Dean Witter Discover & Company A 10/15/13 6.750 1,250,000 1,136,720
Fairfax Financial Holdings BBB+ 10/01/15 8.250 1,500,000 1,483,590
Keystone Group, Inc. BB- 09/01/03 9.750 500,000 487,500
SunAmerica Inc. A 04/28/23 8.125 1,000,000 1,011,395
FOOD PROCESSING - 1.6%
Chiquita Brands Int'l, Inc. B+ 01/15/04 9.625 1,000,000 990,000
ConAgra, Inc. BBB- 03/01/21 9.750 500,000 575,998
Nabisco, Inc. BBB 06/15/15 7.550 1,000,000 975,831
FOREIGN GOVERNMENT - 3.3%
Province of Newfoundland BBB+ 10/22/22 8.650 1,000,000 1,067,777
Province of Nova Scotia A- 07/27/13 7.250 1,000,000 966,876
Province of Quebec A+ 12/01/26 8.625 1,000,000 1,077,188
Province of Saskatchewan BBB+ 02/01/13 8.000 1,000,000 1,022,997
Republic of Finland AA- 04/01/28 9.625 1,000,000 1,064,465
GROCERY - 1.2%
Penn Traffic Company BB- 02/15/02 10.250 1,000,000 975,000
Ralph's Grocery Company B 06/15/04 10.450 250,000 238,750
Ralph's Grocery Company B- 06/15/05 13.750 194,000 201,731
Safeway, Inc. BB+ 03/15/07 9.875 450,000 500,211
HOTEL / GAMING - 3.0%
Aztar Corporation B 10/01/02 11.000 500,000 520,000
Caesars World, Inc. BBB- 08/15/02 8.875 500,000 520,681
California Hotel Finance Corp. BB- 12/01/02 11.000 400,000 422,000
Circus Circus Enterprises BBB 07/15/13 7.625 450,000 414,000
Empress River Casino Finance Corp. BB 04/01/02 10.750 500,000 501,427
ITT Corporation BBB 11/15/15 7.375 1,000,000 956,598
Prime Hospitality Corp. BB- 01/15/06 9.250 500,000 476,304
Showboat, Inc. BB- 05/01/08 9.250 400,000 408,000
Station Casinos B+ 06/01/03 9.625 500,000 485,000
</TABLE>
See Notes To Financial Statements
34
<PAGE> 36
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
HOUSEHOLD PRODUCTS - 0.4%
American Standard, Inc. B+ 06/01/01 9.875 $ 350,000 $ 360,500
Owens Illinois, Inc. B+ 08/15/04 9.750 250,000 254,063
INSURANCE - 7.0%
Aetna Life & Casualty Company A- 01/15/17 8.000 1,500,000 1,485,946
CIGNA Corporation BBB+ 03/01/23 7.650 500,000 474,844
CNA Financial Corporation A- 11/15/23 7.250 1,000,000 915,626
Continental Corporation BBB- 08/15/12 8.375 600,000 629,145
Kaufman & Broad Home Corp. BB- 05/01/03 9.375 1,000,000 1,000,000
Leucadia National Corporation BBB+ 08/15/13 7.750 910,000 869,050
MBIA, Inc. AA 10/01/22 8.200 2,000,000 2,098,102
Metropolitan Life Insurance Co.* AA 11/01/23 7.450 500,000 455,566
New York Life Insurance Company AA 12/15/23 7.500 1,000,000 981,580
Penncorp Financial Group, Inc. BB+ 12/15/03 9.250 500,000 477,500
Reliance Group Holdings, Inc. BB+ 11/15/00 9.000 1,000,000 995,000
Vesta Insurance Group BBB+ 07/15/25 8.750 500,000 525,968
MEDICAL SERVICES - 1.7%
Abbey Healthcare Group, Inc. BB+ 11/01/02 9.500 500,000 512,797
Beverly Enterprises Inc. B+ 02/15/06 9.000 500,000 467,500
Columbia/HCA Healthcare Corporation BBB+ 12/15/14 9.000 1,000,000 1,138,958
HEALTHSOUTH Rehabilitation B 04/01/01 9.500 500,000 520,000
MEDICAL SUPPLIES - 0.4%
Cardinal Health, Inc. A- 02/15/04 6.500 700,000 671,606
METALS & MINING - 2.0%
Alcan Aluminum Ltd. A- 01/15/22 8.875 1,000,000 1,051,766
Inco Ltd. BBB- 06/15/22 9.600 500,000 549,510
Kaiser Aluminum & Chemical Corp. B- 02/01/03 12.750 500,000 535,000
Placer Dome, Inc. BBB 06/15/15 7.750 1,000,000 937,867
NATURAL GAS - 1.3%
Consolidated Natural Gas Company AA- 12/01/11 8.625 1,000,000 1,036,239
Seagull Energy BB- 08/01/05 8.625 1,000,000 950,000
NEWSPAPER - 0.3%
Hollinger International, Inc. BB- 02/01/06 9.250 500,000 460,000
</TABLE>
See Notes To Financial Statements
35
<PAGE> 37
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
OILFIELD SERVICES - 0.2%
Rowan Companies, Inc. B+ 12/01/01 11.875 $ 250,000 $ 268,750
PACKAGING & CONTAINERS - 1.7%
Container Corp. of America B+ 04/01/03 9.750 400,000 402,000
Crown Cork & Seal Company, Inc. BBB+ 04/15/23 8.000 1,500,000 1,449,376
Stone Container Corporation B+ 02/01/01 9.875 750,000 729,375
PAPER & FOREST PRODUCTS - 3.5%
Bowater, Inc. BBB 10/15/12 9.500 700,000 802,698
Champion International Corporation BBB 09/01/23 7.625 1,500,000 1,375,314
Domtar, Inc. BB 03/15/99 11.750 750,000 823,125
Fort Howard Corporation B 03/15/03 10.000 400,000 405,000
Georgia-Pacific Corporation BBB- 07/01/22 9.125 1,000,000 1,042,188
Sweetheart Corporation, Inc. B+ 09/01/00 9.625 1,000,000 995,000
PETROLEUM - 7.1%
Amoco Corporation AAA 12/15/16 8.625 2,000,000 2,086,368
ANR Pipeline Company BBB- 11/01/21 9.625 1,000,000 1,168,553
Clark Oil & Refining Corporation BB 09/15/04 9.500 650,000 659,750
Diamond Shamrock R & M, Inc. BBB 04/01/23 8.000 600,000 592,271
Louisiana Land & Exploration Co. BBB 04/15/13 7.625 1,000,000 1,003,870
Maxus Energy Corporation BB- 02/15/03 9.500 1,000,000 985,646
Maxus Energy Corporation BB- 11/01/03 9.375 750,000 735,000
NOVA Gas Transmission A- 04/01/23 7.875 600,000 597,001
OXY USA, Inc. BBB 04/15/11 7.000 1,000,000 908,486
Phillips Petroleum Company BBB 01/01/23 8.490 1,000,000 1,024,043
USX Corporation BB+ 02/15/12 9.375 750,000 824,681
Vintage Petroleum, Inc. B+ 12/15/05 9.000 500,000 469,327
PUBLISHING - 0.6%
News America Holdings BBB 08/10/18 8.250 1,000,000 989,376
RAILROAD - 0.3%
Kansas City Southern Industries, Inc. BBB+ 07/01/22 8.800 500,000 521,913
REAL ESTATE INVESTMENT TRUST - 0.4%
Taubman Realty Group Ltd. BBB 10/01/03 7.000 750,000 696,798
</TABLE>
See Notes To Financial Statements
36
<PAGE> 38
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
RECREATION - 1.3%
Brunswick Corporation BBB+ 09/01/23 7.375 $ 975,000 $ 919,462
Time Warner, Inc. BBB- 01/15/13 9.125 1,000,000 1,055,000
RESTAURANT - 0.9%
Darden Restaurants, Inc. BBB+ 02/01/16 7.125 1,500,000 1,341,090
RETAIL STORE - 3.8%
Best Buy, Inc. B+ 10/01/00 8.625 1,000,000 975,000
Dayton Hudson Corporation BBB+ 08/01/23 7.650 750,000 690,938
Genesco, Inc. B 02/01/03 10.375 425,000 407,550
Kmart Corporation BBB 10/01/12 7.750 1,000,000 805,207
May Department Stores A 12/01/16 9.125 1,000,000 1,036,420
Rite-Aid Corporation A- 08/15/13 6.875 1,000,000 913,126
Sears, Roebuck & Company BBB 11/01/11 9.375 1,000,000 1,159,713
SECURITIES BROKERAGE - 3.3%
Bear Stearns Companies, Inc. A 01/15/04 6.625 1,000,000 952,188
Goldman Sachs Group A+ 03/01/13 8.000 1,000,000 1,001,853
Lehman Brothers, Inc. A 05/15/05 11.625 1,023,000 1,280,060
Morgan Stanley Group, Inc. A+ 10/01/13 7.000 1,000,000 936,134
Paine Webber Group, Inc. BBB+ 02/15/14 7.625 1,000,000 942,489
STEEL - 1.0%
AK Steel Corporation BB- 04/01/04 10.750 500,000 542,500
Jorgensen, Earle M. Company B 03/01/00 10.750 500,000 485,000
Wheeling-Pittsburgh Corporation BB- 11/15/03 9.375 500,000 470,000
TELECOMMUNICATIONS SERVICE - 4.5%
GTE Corporation BBB+ 11/01/21 8.750 1,000,000 1,116,251
NYNEX Corporation A 12/15/11 7.375 500,000 485,913
Paging Network, Inc. B 02/01/06 8.875 1,000,000 883,582
Panamsat L.P. BB- 08/01/00 9.750 500,000 517,500
Southern Bell Telephone & Telegraph Co. AAA 03/15/13 7.625 3,000,000 2,977,503
Southwestern Bell Telephone Company AA 05/01/12 7.375 1,000,000 970,626
TEXTILES - 1.4%
Dominion Textile, Inc. BB 04/01/06 9.250 500,000 492,500
Fieldcrest Cannon, Inc. B+ 06/15/04 11.250 1,000,000 1,000,000
WestPoint Stevens, Inc. BB- 12/15/01 8.750 750,000 731,250
</TABLE>
See Notes To Financial Statements
37
<PAGE> 39
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------
S & P
Fixed Income Securities Credit Principal Market
Issue Rating Maturity Coupon Amount Value
- ---------------------------------------------- --------- ----------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
TOBACCO - 0.8%
Philip Morris Companies, Inc. A 01/15/17 8.375 $ 500,000 $ 509,770
RJR Nabisco, Inc. BBB- 04/15/04 8.750 775,000 772,337
U.S. GOVERNMENT - 1.2%
U.S. Treasury 08/15/23 6.250 1,000,000 906,563
U.S. Treasury 08/15/05 6.500 1,000,000 985,625
---------------
TOTAL FIXED INCOME SECURITIES - 97.1%
(Cost $150,713,742) $ 151,376,335
===============
</TABLE>
*Security exempt from registration under Rule 144A of the Securities Act of 1933
See Notes To Financial Statements
38
<PAGE> 40
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1996
- ------------------------------------------------------------------------------------------------------------------
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities . . . . . . . . $ 32,671,735 $ 4,063,833 $ 64,675,686 $ 1,266,330 $151,376,335
Cash . . . . . . . . . . . . . . . . . . . 352,340 6,423 709,607 9,475 1,172,478
Receivables
Dividends and interest . . . . . . . . . 11,850 80,900 591,118 28,198 3,521,124
Securities Sold . . . . . . . . . . . . 144,930 0 71,195 0 0
Prepaid expenses . . . . . . . . . . . . . 1,488 820 2,957 437 5,117
------------- ------------- ------------- ------------- -------------
Total assets . . . . . . . . . . . . . . . 33,182,343 4,151,976 66,050,563 1,304,440 156,075,054
LIABILITIES
Payable to affiliated entities
Investment advisory fees . . . . . . . . 19,480 1,373 38,349 433 64,032
Distribution fees . . . . . . . . . . . 683 0 1,365 0 3,214
Accounts payable and accrued expenses . . 9,256 1,096 19,052 124 40,871
Securities purchased . . . . . . . . . . . 122,248 0 0 0 0
Distributions payable . . . . . . . . . . 0 3,749 1,406 698 8,854
------------- ------------- ------------- ------------- -------------
Total liabilities . . . . . . . . . . . . 151,667 6,218 60,172 1,255 116,971
------------- ------------- ------------- ------------- -------------
Net assets . . . . . . . . . . . . . . . . $ 33,030,676 $ 4,145,758 $ 65,990,391 $ 1,303,185 $155,958,083
============= ============= ============= ============= =============
NET ASSETS
Paid-in capital . . . . . . . . . . . . . $ 23,930,475 $ 4,054,953 $ 52,988,947 $ 1,332,173 $156,400,679
Accumulated undistributed net investment
income (loss) . . . . . . . . . . . . . (61,358) 0 0 0 0
Accumulated undistributed net realized
gain (loss) on investments . . . . . . . (26,920) 2,115 423,052 (617) (1,105,189)
Net unrealized appreciation (depreciation)
in value of investments . . . . . . . . 9,188,479 88,690 12,578,392 (28,371) 662,593
------------- ------------- ------------- ------------- -------------
Net assets . . . . . . . . . . . . . . . . $ 33,030,676 $ 4,145,758 $ 65,990,391 $ 1,303,185 $155,958,083
============= ============= ============= ============= =============
SHARES OUTSTANDING . . . . . . . . . . . . . 2,355,312 405,030 5,082,014 129,574 15,697,419
============= ============= ============= ============= =============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE . . . . . . . . $ 14.02 $ 10.24 $ 12.99 $ 10.06 $ 9.94
============= ============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
39
<PAGE> 41
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------------
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 11,769 $ 159,188 $ 874,969 $ 50,982 $ 6,228,280
Dividends 88,579 0 435,176 0 0
------------- ------------- ------------- ------------- -------------
Total investment income 100,348 159,188 1,310,145 50,982 6,228,280
EXPENSES
Paid to affiliates:
Investment advisory fees . . . . . . . . . . 104,106 8,716 220,744 2,715 376,200
Administration fees . . . . . . . . . . . . . 0 0 0 0 0
Distribution fees . . . . . . . . . . . . . . 37,181 0 78,837 0 188,100
Transfer and dividend disbursing
agent fees . . . . . . . . . . . . . . . . 0 0 0 0 0
Paid to others:
Custodial fees . . . . . . . . . . . . . . . 9,892 1,192 12,913 838 4,499
Directors fees and expenses . . . . . . . . . 442 66 942 0 2,250
Professional fees . . . . . . . . . . . . . . 2,650 394 5,654 0 13,498
Shareholder reporting costs . . . . . . . . . 3,862 600 8,399 0 19,497
Registration and filing fees . . . . . . . . 2,372 715 2,483 711 9,028
Other operating expenses . . . . . . . . . . 1,201 207 2,905 8 5,497
------------- ------------- ------------- ------------- -------------
Total expenses . . . . . . . . . . . . . . . 161,706 11,890 332,877 4,272 618,569
NET INVESTMENT INCOME (LOSS) . . . . . . . . . . (61,358) 147,298 977,268 46,710 5,609,711
REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from securities sold . . . . . . . . 4,326,124 711,916 3,532,673 64,332 5,982,489
Cost of securities sold . . . . . . . . . . . (4,096,394) (693,841) (3,109,621) (59,190) (6,573,398)
------------- ------------- ------------- ------------- -------------
Net realized gain (loss) on investments . . . 229,730 18,075 423,052 5,142 (590,909)
UNREALIZED GAIN (LOSS) ON INVESTMENTS
Appreciation, Beginning of year . . . . . . . 6,131,146 340,412 10,985,561 72,955 8,496,965
Appreciation (depreciation), End of period . 9,188,479 88,690 12,578,392 (28,371) 662,593
------------- ------------- ------------- ------------- -------------
Net unrealized gain (loss) on investments . . 3,057,333 (251,722) 1,592,831 (101,326) (7,834,372)
------------- ------------- ------------- ------------- -------------
NET GAIN (LOSS) ON INVESTMENTS . . . . . . . . . 3,287,063 (233,647) 2,015,883 (96,184) (8,425,281)
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . $ 3,225,705 $ (86,349) $ 2,993,151 $ (49,474) $ (2,815,570)
============= ============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
40
<PAGE> 42
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
EQUITY GROWTH BOND
--------------------------- ---------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1996 1995 1996 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . $ (61,358) $ (56,945) $ 147,298 $ 293,799
Net realized gain (loss) on investments . . . . . 229,730 316,515 18,075 11,845
Net unrealized gain (loss) on investments . . . . 3,057,333 5,990,202 (251,722) 483,876
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . 3,225,705 6,249,772 (86,349) 789,520
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . 0 0 (147,298) (293,799)
Net realized gain on investments . . . . . . . . 0 0 0 0
------------- ------------- ------------- -------------
Total distributions to shareholders . . . . . . . 0 0 (147,298) (293,799)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . 5,574,584 8,534,816 368,750 654,515
Reinvestment of distributions . . . . . . . . . . 0 0 125,939 250,365
Cost of shares reacquired . . . . . . . . . . . . (1,394,759) (1,793,152) (642,397) (872,964)
------------- ------------- ------------- -------------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . 4,179,825 6,741,664 (147,708) 31,916
------------- ------------- ------------- -------------
Net increase (decrease) in net assets . . . . . . 7,405,530 12,991,436 (381,355) 527,637
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . 25,625,146 12,633,710 4,527,113 3,999,476
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . $ 33,030,676 $ 25,625,146 $ 4,145,758 $ 4,527,113
============= ============= ============= =============
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . 416,072 822,812 34,763 63,642
Shares issued from reinvestment of distributions. 0 0 12,121 24,367
Reacquired . . . . . . . . . . . . . . . . . . . (105,258) (169,448) (61,601) (84,347)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding . . 310,814 653,364 (14,717) 3,662
Outstanding:
Beginning of year . . . . . . . . . . . . . . . 2,044,498 1,391,134 419,747 416,085
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . 2,355,312 2,044,498 405,030 419,747
============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
41
<PAGE> 43
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - (Continued)
- -------------------------------------------------------------------------------------------------------------
BALANCED LONG TERM INCOME
--------------------------- ---------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1996 1995 1996 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . $ 977,268 $ 1,600,391 $ 46,710 $ 91,770
Net realized gain (loss) on investments . . . . . 423,052 1,455,272 5,142 687
Net unrealized gain (loss) on investments . . . . 1,592,831 10,850,004 (101,326) 204,161
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . 2,993,151 13,905,667 (49,474) 296,618
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . (977,268) (1,600,391) (46,710) (91,770)
Net realized gain on investments . . . . . . . . 0 (675,694) 0 0
------------- ------------- ------------- -------------
Total distributions to shareholders . . . . . . . (977,268) (2,276,085) (46,710) (91,770)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . 8,331,438 6,216,671 2,177 88,084
Reinvestment of distributions . . . . . . . . . . 966,289 2,254,669 43,049 90,571
Cost of shares reacquired . . . . . . . . . . . . (4,621,989) (5,022,865) (96,224) (95,945)
------------- ------------- ------------- -------------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . 4,675,738 3,448,475 (50,998) 82,710
------------- ------------- ------------- -------------
Net increase (decrease) in net assets . . . . . . 6,691,621 15,078,057 (147,182) 287,558
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . 59,298,770 44,220,713 1,450,367 1,162,809
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . $ 65,990,391 $ 59,298,770 $ 1,303,185 $ 1,450,367
============= ============= ============= =============
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . 651,243 537,704 208 8,833
Shares issued from reinvestment of distributions. 75,069 190,968 4,205 8,984
Reacquired . . . . . . . . . . . . . . . . . . . (362,809) (445,049) (9,375) (9,616)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding . . 363,503 283,623 (4,962) 8,201
Outstanding:
Beginning of year . . . . . . . . . . . . . . . 4,718,511 4,434,888 134,536 126,335
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . 5,082,014 4,718,511 129,574 134,536
============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
42
<PAGE> 44
<TABLE>
<CAPTION>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - (Continued)
- -------------------------------------------------------------------------------------------------------------
RETIREMENT INCOME
---------------------------
(Unaudited)
Six months Year
ended ended
June 30, Dec. 31,
1996 1995
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . $ 5,609,711 $ 9,158,774
Net realized gain (loss) on investments . . . . . (590,909) (309,780)
Net unrealized gain (loss) on investments . . . . (7,834,372) 15,790,332
------------- -------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . (2,815,570) 24,639,326
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . (5,609,711) (9,158,774)
Net realized gain on investments . . . . . . . . 0 0
------------- -------------
Total distributions to shareholders . . . . . . . (5,609,711) (9,158,774)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . 26,485,947 41,855,679
Reinvestment of distributions . . . . . . . . . . 5,559,052 9,090,489
Cost of shares reacquired . . . . . . . . . . . . (6,960,863) (11,289,892)
------------- -------------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . 25,084,136 39,656,276
------------- -------------
Net increase (decrease) in net assets . . . . . . 16,658,855 55,136,828
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . 139,299,228 84,162,400
------------- -------------
End of period . . . . . . . . . . . . . . . . . . $155,958,083 $139,299,228
============= =============
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . 2,582,578 4,342,406
Shares issued from reinvestment of distributions. 551,127 907,982
Reacquired . . . . . . . . . . . . . . . . . . . (687,694) (1,130,935)
------------- -------------
Net increase (decrease) in shares outstanding . . 2,446,011 4,119,453
Outstanding:
Beginning of year . . . . . . . . . . . . . . . 13,251,408 9,131,955
------------- -------------
End of period . . . . . . . . . . . . . . . . . 15,697,419 13,251,408
============= =============
</TABLE>
See Notes To Financial Statements
43
<PAGE> 45
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 preparation of financial statements in accordance with
generally accepted accounting principles requires management to
make estimates and assumptions that affect reported amounts and
disclosures in the financial statements. Actual results could
differ from these estimates.
The following is a summary of significant accounting
policies followed by the COMPANY.
Security Valuation
Securities for which exchanged quotations are readily
available are valued at the last sale price, or if no sale
price, at the closing bid price. Securities (including
restricted securities) for which exchange quotations are not
readily available (and in certain cases debt securities which
trade on an exchange), are valued primarily using dealer
supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general
supervision of the Board of Directors. Money market instruments
held by the Funds with a remaining maturity of sixty days or
less will be valued at cost which approximates market.
Expenses
Most expenses of the Company can be directly attributed to a
fund. Expenses which cannot be directly attributed are
apportioned between the Funds on the basis of average net assets.
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. Premium and discount amortization on
fixed income securities are amortized using the effective
interest method. Realized gains and
44
<PAGE> 46
Note 2. ACCOUNTING POLICIES (Continued)
losses on security transactions are determined on the first-in,
first-out method. Net investment losses, for which no carryover
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, 1996 have been included. All
adjustments were of a normal recurring nature.
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 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
$712,481 by MANAGEMENT for the six months ended June 30, 1996.
The COMPANY was charged distribution fees of $304,118 by
SERVICES for the six months ended June 30, 1996. SERVICES paid
or accrued to brokerage firms a total of $8,155 for distributing
COMPANY shares for the six months ended June 30, 1996. At June
30, 1996 an employee retirement plan sponsored by SERVICES owned
51,156 shares (2.2%) of the Equity Growth Fund and 14,143 shares
(0.3%) 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 and consist of
a $1,000 annual retainer and an additional $100 per meeting.
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, 1996 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
---------- -------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C>
Purchases $8,537,416 $574,331 $7,697,235 $25,813 $29,554,712
Sales 4,326,124 711,916 3,532,673 64,332 5,982,489
</TABLE>
45
<PAGE> 47
Note 4. INVESTMENT PORTFOLIO TRANSACTIONS (Continued)
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 $274,564 None None $1,184,766
Sales None 293,081 None $38,432 2,380,813
</TABLE>
Gross unrealized appreciation and depreciation of
investments as of June 30, 1996 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
----------- -------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C>
Appreciation $10,161,344 $160,683 $13,601,101 $23,120 $4,123,203
Depreciation 972,865 71,993 1,022,709 51,491 3,460,610
</TABLE>
Note 5. CASH
As of June 30, 1996, substantially all cash was invested in
the Monitor Money Market Fund, bearing interest at a variable
rate (approximately 4.9%).
Note 6. CAPITAL LOSS CARRYOVERS
At December 31, 1995, capital loss carryovers and their
expiration dates were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Income Income
-------- ------- --------- ----------
<S> <C> <C> <C> <C>
December 31, 2002 $256,650 $15,960 $5,759 $204,500
December 31, 2003 0 0 0 309,780
-------- ------- --------- ----------
Total $256,650 $15,960 $5,759 $514,280
======== ======= ========= ==========
</TABLE>
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.
46
<PAGE> 48
ADVANCE CAPITAL I, INC. ADVANCE CAPITAL I INC.
An investment 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
OFFICERS:
John C. Shoemaker, President
Robert J. Cappelli, Vice President & Treasurer
Charles J. Cobb, Vice President
Kathy J. Harkleroad, Secretary
BOARD OF DIRECTORS:
Joseph A. Ahern
Richard W. Holtcamp
Harry Kalajian
John C. Shoemaker SEMI-ANNUAL REPORT
Frank R. Zimmerman JUNE 30, 1996
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