<PAGE>
SEMI-ANNUAL REPORT
June 30, 1997
ADVANCE CAPITAL I, Inc.
An investment company with five funds
<PAGE>
<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...............................15
Balanced Fund...........................18
Long Term Income Fund...................30
Retirement Income Fund..................32
Statement of Assets and Liabilities..........40
Statement of Operations......................41
Statement of Changes in Net Assets...........42
Notes to Financial Statements................45
</TABLE>
<PAGE>
Dear Shareholders,
A 1996 end of year warning by Alan Greenspan kept stock returns in the
"normal" range for much of the first quarter. By the second quarter, however,
investors had shrugged off the chairman's warning and quickly elevated stocks
to new heights. The S&P 500 Index returned almost six percent during April
and May and over four percent for June. Incredibly, the Index has returned
over twenty percent for the year and 110 percent for the three years ended
June 30th.
Impressive stock returns combined with solid economic growth and low
inflation has been the catalyst for record inflows into stock mutual funds
over the past few years. The higher demand for stocks has pushed prices and
valuations to record levels. On the surface it appears a market "correction"
is not only probable, but imminent. Many in the investment community, however,
believe this market is different, the pattern has changed. They theorize that
smaller federal deficits, a controlled monetary policy and globalization of
markets has lead to an indefinite period of economic and investment prosperity.
If they are correct, current stock valuations are probably warranted. If not,
stocks are indeed overpriced and a "correction" is necessary to bring values
back to historical norms.
George Santayana once said, "Those who cannot remember the past are
condemned to repeat it." At the peak of prior bull markets, investors were
euphoric about the almost effortless money to be made. National and local
economies were booming, jobs were plentiful, inflation was low and consumer
confidence was high; times were good. This investor euphoria happened in the
mid 1920's, again in the late 1950's to mid 1960's and is widely evident today.
Although the years change, the feeling of unending prosperity is the same.
Each of the earlier periods was also witness to the pitfalls of an economic
and market downturn. There is no question that the current economic boom will
eventually subside and stocks will correct. The unknowns are when and by how
much. As investors, however, it is important to remember that investing is a
long term commitment and short term market fluctuations should be expected.
If today's market, for example, should be reduced by half, a correction of
historic portions, the market would have the same valuation as in February
of 1995. A 1987 - type correction would put valuations back only to November
of last year. The cost, in commissions, taxes and anxiety is too great to
warrant any attempt to avoid the correction. Long term growth happens in the
market, not on the sidelines. For this reason we maintain a fully invested
posture in all of our mutual funds.
2
<PAGE>
Within this environment, the Advance Capital I, Inc. Funds have performed
in-line with their respective investment objectives. The growth portfolios,
the Equity Growth and the Balanced Fund, increased 6.9 and 10.2 percent for
the first half of the year. Fixed income returns have been limited almost
exclusively to the yield from the bonds. The Bond, Long Term and Retirement
Income Funds have returned 2.8, 2.0 and 3.4 percent through June 30th. As we
write this letter we note that stocks and bonds have continued their advance,
tacking on considerable gains in July. We remain committed to our investment
philosophies and continue to maintain a fully invested posture.
Sincerely,
/s/ Robert J. Cappelli /s/ John C. Shoemaker
Robert J. Cappelli John C. Shoemaker
August 11, 1997
3
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH
--------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, ------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $14.72 $12.53 $9.08 $9.46 $9.94 $9.83
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income (loss) . . . . . . . (0.04) (0.07) (0.03) (0.03) 0.12 0.10
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 1.06 2.26 3.48 (0.35) 0.07 0.11
-------- -------- -------- -------- -------- --------
Total from investment operations . . . . . 1.02 2.19 3.45 (0.38) 0.19 0.21
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income . . . . . . . . . . 0.00 0.00 0.00 0.00 (0.12) (0.10)
Net realized gain on investments . . . . . 0.00 0.00 0.00 0.00 (0.55) 0.00
-------- -------- -------- -------- -------- --------
Total distributions . . . . . . . . . . . 0.00 0.00 0.00 0.00 (0.67) (0.10)
-------- -------- -------- -------- -------- --------
Net asset value, end of period . . . . . . . $15.74 $14.72 $12.53 $9.08 $9.46 $9.94
======== ======== ======== ======== ======== ========
Total Return . . . . . . . . . . . . . . . . 6.93% 17.48% 38.00% -4.02% 2.13% 2.22%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $47,689 $38,767 $25,625 $12,634 $7,577 $7,094
Ratio of expenses to average net assets. . 1.09% 1.09% 1.12% 1.21% 1.16% 1.22%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . -0.56% -0.50% -0.29% -0.30% 1.27% 1.05%
Portfolio turnover rate . . . . . . . . . 22.03% 24.75% 13.86% 18.05% 135.55% 96.05%
Average commission rate per share* . . . . $0.0276 $0.0261
</TABLE>
* For fiscal years beginning after September 1, 1995, a fund is required to
disclose its average commission rate per share for security trades on which
commissions are charged.
See Notes To Financial Statements
4
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND
--------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, ------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $10.37 $10.79 $9.61 $10.82 $10.51 $10.52
-------- -------- ------- -------- -------- --------
Income from investment operations
Net investment income . . . . . . . . . . 0.35 0.70 0.70 0.71 0.72 0.70
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . (0.07) (0.42) 1.18 (1.21) 0.45 0.01
-------- -------- -------- -------- -------- --------
Total from investment operations . . . . . 0.28 0.28 1.88 (0.50) 1.17 0.71
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income . . . . . . . . . . (0.35) (0.70) (0.70) (0.71) (0.72) (0.70)
Net realized gain on investments . . . . . 0.00 0.00 0.00 0.00 (0.14) (0.02)
-------- -------- -------- -------- -------- --------
Total distributions . . . . . . . . . . . (0.35) (0.70) (0.70) (0.71) (0.86) (0.72)
-------- -------- -------- -------- -------- --------
Net asset value, end of period . . . . . . . $10.30 $10.37 $10.79 $9.61 $10.82 $10.51
======== ======== ======== ======== ======== ========
Total Return . . . . . . . . . . . . . . . . 2.76% 2.81% 20.15% -4.64% 11.48% 7.04%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $4,188 $4,430 $4,527 $3,999 $4,741 $5,793
Ratio of expenses to average net assets. . 0.55% 0.55% 0.55% 0.60% 0.61% 0.75%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . 6.72% 6.71% 6.80% 7.06% 6.57% 6.69%
Portfolio turnover rate . . . . . . . . . 31.63% 19.77% 6.69% 21.92% 35.99% 38.22%
</TABLE>
See Notes To Financial Statements
5
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED
--------------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, --------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $13.68 $12.57 $9.97 $10.58 $10.36 $10.38
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income . . . . . . . . . . 0.22 0.41 0.35 0.32 0.29 0.33
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . 1.16 1.37 2.75 (0.61) 0.22 (0.02)
-------- -------- -------- -------- -------- --------
Total from investment operations . . . . . 1.38 1.78 3.10 (0.29) 0.51 0.31
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income . . . . . . . . . . (0.22) (0.41) (0.35) (0.32) (0.29) (0.33)
Net realized gain on investments . . . . . 0.00 (0.26) (0.15) 0.00 0.00 0.00
-------- -------- -------- -------- -------- --------
Total distributions . . . . . . . . . . . (0.22) (0.67) (0.50) (0.32) (0.29) (0.33)
-------- -------- -------- -------- -------- --------
Net asset value, end of period . . . . . . . $14.84 $13.68 $12.57 $9.97 $10.58 $10.36
======== ======== ======== ======== ======== ========
Total Return . . . . . . . . . . . . . . . . 10.15% 14.48% 31.53% -2.72% 4.97% 3.07%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $89,034 $75,202 $59,299 $44,221 $46,690 $42,440
Ratio of expenses to average net assets. . 1.06% 1.06% 1.07% 1.10% 1.08% 1.13%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . 3.07% 3.17% 3.11% 3.18% 2.77% 3.24%
Portfolio turnover rate . . . . . . . . . 10.25% 12.79% 22.72% 34.97% 101.29% 42.39%
Average commission rate per share* . . . . $0.0266 $0.0278
</TABLE>
* For fiscal years beginning after September 1, 1995, a fund is required to
disclose its average commission rate per share for security trades on which
commissions are charged.
See Notes To Financial Statements
6
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LONG TERM INCOME
--------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, --------------------------------------------
1997 1996 1995 1994 1993
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $10.27 $10.78 $9.20 $10.60 $10.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income . . . . . . . . . . 0.34 0.70 0.70 0.72 0.74
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . (0.15) (0.51) 1.58 (1.40) 0.77
-------- -------- -------- -------- --------
Total from investment operations . . . . . 0.19 0.19 2.28 (0.68) 1.51
-------- -------- -------- -------- --------
Less distributions
Net investment income . . . . . . . . . . (0.34) (0.70) (0.70) (0.72) (0.74)
Net realized gain on investments . . . . . 0.00 0.00 0.00 0.00 (0.17)
-------- -------- -------- -------- --------
Total distributions . . . . . . . . . . . (0.34) (0.70) (0.70) (0.72) (0.91)
-------- -------- -------- -------- --------
Net asset value, end of period . . . . . . . $10.12 $10.27 $10.78 $9.20 $10.60
======== ======== ======== ======== ========
Total Return . . . . . . . . . . . . . . . . 1.96% 2.09% 25.57% -6.53% 14.43%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $1,149 $1,395 $1,450 $1,163 $1,079
Ratio of expenses to average net assets. . 0.72% 0.64% 0.63% 0.63% 0.64%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . 6.77% 6.86% 6.93% 7.37% 6.60%
Portfolio turnover rate . . . . . . . . . 101.38% 6.38% 1.74% 15.39% 75.72%
</TABLE>
See Notes To Financial Statements
7
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT INCOME
--------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, --------------------------------------------
1997 1996 1995 1994 1993
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year . . . . $10.20 $10.51 $9.22 $10.54 $10.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income . . . . . . . . . . 0.37 0.75 0.76 0.76 0.82
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . (0.03) (0.31) 1.29 (1.32) 0.61
-------- -------- -------- -------- --------
Total from investment operations . . . . . 0.34 0.44 2.05 (0.56) 1.43
-------- -------- -------- -------- --------
Less distributions
Net investment income . . . . . . . . . . (0.37) (0.75) (0.76) (0.76) (0.82)
Net realized gain on investments . . . . . 0.00 0.00 0.00 0.00 (0.07)
-------- -------- -------- -------- --------
Total distributions . . . . . . . . . . . (0.37) (0.75) (0.76) (0.76) (0.89)
-------- -------- -------- -------- --------
Net asset value, end of period . . . . . . . $10.17 $10.20 $10.51 $9.22 $10.54
======== ======== ======== ======== ========
Total Return . . . . . . . . . . . . . . . . 3.44% 4.54% 22.96% -5.34% 13.92%
Ratios and Supplemental Data
Net assets, end of period (in thousands) . $183,613 $170,799 $139,299 $84,162 $47,343
Ratio of expenses to average net assets. . 0.82% 0.82% 0.84% 0.88% 0.88%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . 7.37% 7.45% 7.64% 7.89% 7.41%
Portfolio turnover rate . . . . . . . . . 13.97% 8.34% 15.63% 12.27% 37.59%
</TABLE>
See Notes To Financial Statements
8
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
ADVERTISING - 1.7%
Catalina Marketing Corporation* 3,600 $ 173,250
CKS Group, Inc.* 4,000 135,000
Heritage Media Corporation* 8,000 151,000
Omnicom Group, Inc. 2,500 154,062
Outdoor Systems, Inc.* 5,400 206,550
AEROSPACE/DEFENSE - 0.4%
BE Aerospace, Inc.* 6,000 189,750
AIR TRANSPORT - 1.1%
Air Express International Corp. 5,100 202,725
Atlantic Southeast Airlines, Inc. 5,500 157,437
Comair Holdings, Inc. 6,500 179,969
APPAREL - 1.7%
Gucci Group 2,100 135,187
Jones Apparel Group, Inc.* 4,000 191,000
Nautica Enterprises, Inc.* 6,000 158,625
Quiksilver, Inc.* 5,500 176,000
Warnaco Group, Inc. 4,500 143,438
AUTO PARTS - 0.4%
SPX Corporation 2,700 174,994
BANK - 2.8%
Bank of New York Company, Inc. 4,600 200,100
City National Corporation 7,000 168,438
First American Corporation 7,400 283,975
First Bank Systems, Inc. 2,000 170,750
Northern Trust Corporation 4,600 222,525
Norwest Corp. 3,800 83,600
State Street Boston Corporation 4,600 212,750
BEVERAGE - 0.5%
Robert Mondavi Corporation* 5,000 236,250
BIOTECHNOLOGY-0.5%
Human Genome Sciences, Inc.* 3,200 106,400
Protein Design Labs, Inc.* 4,000 114,000
BROADCASTING / CABLE TV - 2.8%
A.H. Belo Corporation 3,500 145,688
Clear Channel Communications* 6,000 369,375
Cox Communications, Inc.* 6,000 144,000
Emmis Broadcasting Corporation* 4,000 174,500
Evergreen Media Corporation* 3,000 133,875
Jacor Communications, Inc.* 5,000 191,250
Westwood One, Inc.* 6,000 193,500
BUILDING MATERIAL - 0.3%
American Standard Companies, Inc.* 3,000 134,250
CHEMICAL - 2.4%
Airgas, Inc.* 7,600 150,575
Ecolab, Inc. 3,500 167,125
Lilly Industries, Inc. 7,000 140,875
Raychem Corporation 2,500 185,937
Sherwin-Williams Company 5,500 169,812
Sigma-Aldrich Corporation 5,000 175,312
Valspar Corporation 4,500 133,312
COMPUTER & PERIPHERALS - 3.2%
3COM Corporation, Inc.* 5,500 247,500
Adaptec, Inc.* 4,000 139,000
Cisco Systems, Inc.* 3,000 201,375
EMC Corporation* 4,300 167,700
Microchip Technology, Inc.* 4,425 131,644
SCI Systems, Inc.* 3,000 191,250
Sun Microsystems, Inc.* 8,000 297,750
Xilinx, Inc.* 3,300 161,906
</TABLE>
See Notes to Financial Statements
9
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES - 10.7%
Adobe Systems, Inc. 3,000 $ 105,188
BMC Software, Inc.* 5,600 310,100
Cadence Design Systems, Inc.* 5,500 184,250
Cambridge Technology Partners, Inc.* 6,000 192,000
CBT Group PLC* 2,500 157,813
Ceridian Corporation* 3,500 147,875
Citrix Systems, Inc.* 3,500 153,563
Cognizant Corporation 4,500 182,250
Cognos, Inc.* 4,800 149,400
Compuware Corporation* 5,000 238,750
Electronics for Imaging, Inc.* 3,000 141,750
First Data Corporation 3,612 158,702
Forte Software, Inc.* 4,500 60,469
HBO & Company 4,000 275,500
Inso Corporation* 3,500 71,969
Intuit, Inc.* 4,200 96,337
McAfee Associates, Inc.* 3,900 246,187
National Data Corporation 4,000 173,250
Network General Corporation* 5,000 74,375
Oracle Corporation* 5,000 251,875
Peoplesoft, Inc.* 4,000 211,000
PMT Services, Inc.* 9,000 137,250
Rational Software Corporation* 4,000 67,250
Remedy Corporation* 3,000 120,000
Renaissance Solutions, Inc.* 4,400 162,800
Security Dynamics Tech., Inc.* 5,000 184,375
Shared Medical Systems Corp. 3,500 189,000
Sterling Commerce, Inc.* 4,500 147,937
Symantec Corporation* 7,800 152,100
Synopsys, Inc.* 3,400 124,950
Visio Corporation* 2,800 197,400
DIVERSIFIED - 1.0%
Danaher Corporation 4,000 203,250
Service Corp. International 5,200 170,950
Thermo Electron Corporation* 3,500 119,000
DRUG - 2.0%
Amgen, Inc.* 3,300 191,813
BioChem Pharma, Inc.* 5,000 111,250
Biogen, Inc.* 3,400 115,175
Dura Pharmaceuticals, Inc.* 3,500 139,563
Gilead Sciences, Inc.* 4,000 110,500
Guilford Pharmaceuticals, Inc.* 4,500 109,125
Isis Pharmaceuticals, Inc.* 5,500 80,094
TheraTech, Inc.* 10,200 119,850
ELECTRIC & GAS UTILITIES-0.4%
AES Corporation* 2,900 205,175
ELECTRICAL EQUIPMENT - 0.3%
Littlefuse, Inc.* 5,000 141,250
ELECTRONICS - 3.4%
ADT Ltd.* 5,500 181,500
Altera Corporation* 5,400 272,700
Checkpoint Systems, Inc.* 6,500 104,406
Harman International Industries 3,100 130,588
Lam Research Corporation* 2,300 85,244
Molex, Inc. 5,937 207,053
Symbol Technologies, Inc.* 5,150 173,169
Teradyne, Inc.* 3,100 121,675
Thermedics, Inc.* 7,000 109,812
Ultratech Stepper, Inc.* 4,000 91,500
Waters Corporation* 3,500 125,563
ENVIRONMENTAL - 1.1%
Superior Services, Inc.* 7,000 166,250
United Waste Systems, Inc.* 3,500 143,500
USA Waste Services, Inc.* 3,550 137,119
U.S. Filter Corporation* 3,500 95,375
</TABLE>
See Notes To Financial Statements
10
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
FINANCIAL SERVICES - 4.1%
Aames Financial Corporation 4,500 $ 83,250
Concord EFS, Inc.* 4,500 116,438
CUC International, Inc.* 8,022 207,068
Finova Group, Inc. 2,500 191,250
First USA, Inc. 5,000 292,187
Franklin Resources, Inc. 4,650 337,416
Green Tree Financial Corporation 4,500 160,312
Mutual Risk Management, Ltd. 5,066 232,403
Paychex, Inc. 4,500 171,000
United Asset Management Corp. 6,200 176,312
FOOD PROCESSING - 0.8%
Goodmark Foods, Inc. 5,000 93,750
International Multifoods Corporation 5,500 138,187
Tootsie Roll Industries, Inc. 3,666 163,137
FOREIGN TELECOMMUNICATIONS - 1.1%
Ericsson Telephone 4,000 157,500
Reuters Holdings PLC 2,000 126,000
Vodafone Group PLC 4,500 217,969
GROCERY - 1.0%
Quality Food Centers, Inc.* 2,800 106,400
Richfood Holdings, Inc. 7,000 182,000
Safeway, Inc.* 4,400 202,950
HOMEBUILDING - 0.6%
Lennar Corporation 4,600 146,912
Rouse Company 4,900 144,550
HOTEL / GAMING - 1.5%
Extended Stay America, Inc.* 6,500 97,094
HFS, Inc.* 4,000 232,000
Host Marriott Corporation* 7,500 133,594
La Quinta Inns, Inc. 5,500 120,312
Mirage Resorts, Inc.* 6,000 151,500
HOUSEHOLD PRODUCTS - 1.4%
Amway Asia Pacific Ltd. 4,000 174,500
First Brands Corporation 5,000 114,687
Lancaster Colony Corporation 4,000 193,500
Sunbeam Corporation, Inc. 5,000 188,750
INDUSTRIAL SERVICES - 5.2%
AccuStaff, Inc.* 6,000 142,125
APAC Teleservices, Inc.* 4,000 77,750
Apollo Group, Inc.* 4,500 158,625
Equifax, Inc. 6,200 230,563
Interim Services* 4,000 178,000
ITT Educational Services, Inc.* 5,200 129,025
Kelly Services, Inc. 2,300 72,162
Manpower, Inc. 3,900 173,550
Primark Corporation* 5,500 146,437
Quintiles Transnational Corporation* 2,500 174,062
Robert Half International, Inc.* 4,500 211,781
Romac International, Inc.* 5,000 163,750
Roper Industries, Inc. 3,000 155,625
Sitel Corporation* 7,400 152,625
Sylvan Learning Systems, Inc.* 4,000 136,000
Vincom Group, Inc.* 4,000 149,000
INSURANCE - 3.7%
Ace, Ltd. 2,800 206,850
AMBAC, Inc. 2,600 198,575
Compdent Corporation* 4,500 94,781
Equitable of Iowa Companies 3,100 173,600
MGIC Investment Corporation 4,000 191,750
Oxford Health Plans, Inc.* 3,200 229,600
Progressive Corporation of Ohio 2,800 243,600
UICI* 4,500 132,750
Vesta Insurance Group, Inc. 4,250 183,812
Zurich Reinsurance Centre Hold.* 3,100 122,450
</TABLE>
See Notes To Financial Statements
11
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------- ------ -----------
<S> <C> <C>
MACHINERY - 2.2%
AGCO Corporation 5,000 $ 179,688
Alamo Group, Inc. 5,000 104,063
Cognex Corporation* 5,000 132,500
Donaldson Company, Inc. 3,800 144,400
Greenfield Industries, Inc. 4,000 108,000
IDEX Corporation 5,500 181,500
Parker-Hannifin Corporation 3,000 182,062
MANUFACTURED HOUSING - 0.4%
Oakwood Homes Corporation 7,000 168,000
MEDICAL SERVICES - 6.1%
ABR Information Services, Inc.* 5,800 168,200
Apria Healthcare Group, Inc.* 5,000 88,438
Equity Corporation International* 4,000 96,750
Genesis Health Ventures, Inc.* 4,000 135,000
Health Care & Retirement Corp.* 5,550 185,231
Health Management Associates* 7,425 211,612
IDX Systems Corporation* 4,600 158,700
Lincare Holdings, Inc.* 3,300 141,900
MedPartners/Mullikin, Inc.* 5,651 122,203
Omnicare, Inc. 4,500 141,187
Orthodontic Ctrs. of America, Inc.* 6,000 109,125
PacifiCare Health Systems, Inc.* 1,500 95,812
PhyCor, Inc.* 5,000 172,187
Quorum Health Group, Inc.* 5,000 178,750
Renal Treatment Centers, Inc.* 5,500 147,812
Tenet Healthcare Corporation* 6,075 179,212
United HealthCare Corporation 2,900 150,800
Universal Health Services, Inc.* 4,800 184,800
Vencor, Inc.* 5,400 233,550
MEDICAL SUPPLIES - 4.1%
Boston Scientific Corporation* 6,245 383,677
Cardinal Health, Inc. 4,125 236,156
Guidant Corporation 3,000 255,000
Henry Schein, Inc.* 5,500 171,875
IDEXX Laboratories, Inc.* 5,000 62,187
Life Technologies, Inc. 5,250 145,687
Medtronic, Inc. 2,000 162,000
Physio-Control International Corp.* 5,500 82,500
Sola International, Inc.* 4,000 132,000
Sybron Corporation* 5,000 199,375
VISX, Inc.* 5,000 118,750
METAL FABRICATING - 0.3%
Kennametal, Inc. 3,500 150,500
NATURAL GAS - 0.3%
Sonat, Inc. 3,000 154,125
NEWSPAPER - 0.4%
Central Newspapers, Inc. 2,500 179,063
OFFICE EQUIPMENT & SUPPLIES - 1.1%
Diebold, Inc. 3,500 136,500
Ikon Office Solutions, Inc. 3,500 87,281
Reynolds & Reynolds Company 5,400 85,050
Unisource Worldwide, Inc. 5,500 88,000
Wallace Computer Services, Inc. 4,500 135,281
OILFIELD SERVICES - 2.2%
BJ Services Company* 2,500 134,063
Camco International, Inc. 3,500 191,625
Noble Drilling Corporation* 6,700 151,169
Pride Petroleum Services, Inc.* 8,000 192,000
Smith International, Inc.* 4,300 261,225
Triton Energy Corporation* 3,000 137,438
PACKAGING & CONTAINER- 0.3%
Sealed Air Corporation* 3,400 161,500
</TABLE>
See Notes To Financial Statements
12
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
PETROLEUM - 2.2%
Apache Corporation 4,000 $ 130,000
Barrett Resources Corporation* 4,000 119,750
Devon Energy Corporation 4,500 165,375
Noble Affiliates, Inc. 3,900 150,881
Nuevo Energy Company* 3,000 123,000
Tosco Corporation 7,500 224,531
United Meridian Corporation* 4,200 126,000
PRECISION INSTRUMENT - 1.3%
Coherent, Inc.* 4,000 178,000
Dionex Corporation* 3,000 153,750
KLA Instruments Corporation* 2,600 126,750
Teleflex, Inc. 5,000 156,250
PRINTING - 0.3%
Valassis Communications, Inc.* 5,500 132,000
PUBLISHING - 0.6%
Harcourt General, Inc. 3,000 142,875
Scholastic Corporation* 4,000 140,000
RAILROAD - 0.7%
Kansas City Southern Ind., Inc. 2,800 180,600
Wisconsin Central Transportation* 4,500 167,625
REAL ESTATE INVESTMENT TRUST - 0.6%
National Health Investors, Inc. 3,700 145,225
Security Capital Pacific Trust 6,500 148,688
RECREATION - 1.6%
Callaway Golf Company 3,400 120,700
Carmike Cinemas, Inc.* 6,000 196,500
Carnival Corporation 4,500 185,625
Gaylord Entertainment Company 4,610 106,318
Harley-Davidson, Inc. 3,000 143,813
RESTAURANT - 0.8%
Applebee's International, Inc. 4,200 112,350
Outback Steakhouse, Inc.* 4,750 114,891
Sbarro, Inc. 5,500 152,625
RETAIL STORE - 7.7%
AutoZone, Inc.* 5,300 124,881
Bed Bath & Beyond, Inc.* 7,000 212,625
Borders Group, Inc.* 8,000 193,000
CDW Computer Centers, Inc.* 2,500 132,656
Circuit City Stores, Inc. 4,300 152,919
CompUSA, Inc.* 6,600 141,900
Dollar General Corporation 9,520 359,380
Gymboree Corporation* 4,000 96,000
Lands' End, Inc.* 6,200 183,675
Men's Wearhouse, Inc.* 5,250 165,375
MSC Industrial Direct Co., Inc.* 4,000 160,000
OfficeMax, Inc.* 9,000 129,938
Pep Boys-Manny, Moe & Jack 3,500 118,563
Petco Animal Supplies, Inc.* 5,500 165,000
PETsMART, Inc.* 7,000 80,500
Starbucks Corporation* 4,000 155,750
The Sports Authority, Inc.* 7,000 136,063
Tiffany & Company 4,000 184,750
TJX Companies, Inc. 6,000 158,250
U.S. Office Products Company* 4,000 122,250
Viking Office Products, Inc.* 6,400 121,600
Williams-Sonoma, Inc.* 5,000 213,750
Zale Corporation* 7,000 138,688
SECURITIES BROKERAGE - 1.3%
Charles Schwab Corporation 6,000 244,125
Investment Technology Group* 7,800 209,625
Raymond James Financial, Inc. 6,750 184,781
</TABLE>
See Notes To Financial Statements
13
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
SEMICONDUCTOR - 1.8%
Atmel Corporation* 4,400 $ 123,200
Linear Technology Corporation 5,400 279,450
Maxim Integrated Products, Inc.* 6,000 341,250
SDL, Inc.* 5,000 95,625
SHOE - 0.4%
Wolverine World Wide, Inc. 6,750 205,031
TELECOMMUNICATIONS EQUIPMENT - 2.3%
Andrew Corporation* 3,906 109,856
Ascend Communications, Inc.* 4,000 157,500
Aspect Telecommunications Corp.* 6,000 133,500
Cascade Communications Corp.* 5,500 151,938
Coherent Commun. Systems Corp.* 5,000 125,000
DSP Communications, Inc.* 6,000 66,000
Tellabs, Inc.* 6,400 357,600
TELECOMMUNICATIONS SERVICE - 2.2%
360 Communications Company* 6,500 111,313
Centennial Cellular Corporation* 4,500 71,438
CommNet Cellular, Inc.* 5,500 191,125
InterCel, Inc.* 8,100 111,375
Intermedia Communications, Inc.* 3,500 113,313
Saville Systems PLC* 4,000 208,000
United States Cellular Corporation* 3,500 103,688
WorldCom, Inc.* 5,000 160,000
TEXTILE - 0.4%
Unifi, Inc. 4,500 168,188
THRIFT - 0.3%
JSB Financial Corporation 3,500 151,375
TOILETRIES/COSMETICS - 0.3%
Alberto-Culver Company 4,500 126,000
TOYS - 0.4%
Mattel, Inc. 5,625 190,547
TRUCKING & TRANSPORT LEASING - 0.2%
Werner Enterprise, Inc. 6,000 116,250
-----------
TOTAL COMMON STOCK - 98.9%
(Cost $32,810,646) $47,179,413
===========
</TABLE>
* Securities are non-income producing
See Notes To Financial Statements
14
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
BANK - 10.5%
Banc One Corporation A+ 8.740 09/15/03 $ 100,000 $ 108,844
Citicorp A 7.250 10/15/11 100,000 99,332
Harris Bankcorp, Inc. A+ 9.375 06/01/01 75,000 81,617
Morgan, J.P. & Company AA 8.500 08/15/03 100,000 108,101
Security Pacific Corporation A 9.750 05/15/99 40,000 42,214
CHEMICAL - 2.7%
duPont, E.I. de Nemours & Co. AA- 6.000 12/01/01 115,000 111,909
COMPUTER & PERIPHERALS - 1.8%
International Business Machines Corp. A 7.250 11/01/02 75,000 76,734
ELECTRIC & GAS UTILITIES - 8.5%
Florida Power Corporation AA- 6.875 02/01/08 70,000 69,577
Northern States Power Co. Minn. AA- 7.375 03/01/02 40,000 40,382
Ontario Hydro AA- 7.450 03/31/13 150,000 154,094
Public Service Co. of Oklahoma A+ 7.250 01/01/99 50,000 50,204
Public Service Electric & Gas A- 7.000 09/01/24 50,000 45,734
ENVIRONMENTAL - 1.1%
Waste Management, Inc. A- 7.650 03/15/11 45,000 46,635
FINANCIAL SERVICES - 5.0%
BHP Finance USA Ltd. A 7.875 12/01/02 100,000 104,663
General Electric Capital Corporation AAA 7.750 03/15/02 100,000 104,383
FOOD PROCESSING - 2.4%
Archer Daniels Midland Company AA- 7.125 03/01/13 100,000 99,435
FOREIGN GOVERNMENT - 6.4%
Province of Ontario AA- 7.625 06/22/04 100,000 104,375
Province of Quebec A+ 8.800 04/15/03 150,000 163,199
GOVERNMENTAL AGENCY - 1.2%
Tennessee Valley Authority AAA 6.125 07/15/03 50,000 48,406
</TABLE>
See Notes To Financial Statements
15
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INSURANCE - 7.3%
Aetna Services, Inc. A- 7.125 08/15/06 $ 100,000 $ 100,084
Allstate Corporation A 7.500 06/15/13 100,000 100,518
CIGNA Corporation A- 8.250 01/01/07 100,000 106,883
MACHINERY - 5.4%
Caterpillar, Inc. A+ 9.000 04/15/06 100,000 112,713
Deere & Company A+ 8.950 06/15/19 100,000 113,100
MEDICAL SERVICES - 2.3%
Columbia/HCA Healthcare Corporation A- 7.250 05/20/08 100,000 100,946
MEDICAL SUPPLIES - 5.3%
Johnson & Johnson AAA 8.720 11/01/24 200,000 219,834
METALS & MINING - 2.9%
Alcan Aluminum Ltd. A- 5.875 04/01/00 125,000 122,735
NEWSPAPER - 1.5%
Knight-Ridder, Inc. A 9.875 04/15/09 50,000 61,482
OFFICE EQUIPMENT & SUPPLIES - 0.8%
Xerox Corporation A 9.750 03/15/00 30,000 32,350
PETROLEUM - 3.5%
Kerr-McGee Corporation A- 7.000 11/01/11 150,000 144,631
RAILROAD - 2.6%
Missouri Pacific Railroad Co. A 9.400 12/15/00 100,000 107,946
RETAIL STORE - 6.7%
Sears, Roebuck & Company A- 9.250 08/01/97 200,000 200,521
Wal-Mart Stores, Inc. AA 8.625 04/01/01 75,000 79,758
SECURITIES BROKERAGE - 7.1%
Lehman Brothers Holdings, Inc. A 8.875 03/01/02 150,000 160,654
Merrill Lynch & Company, Inc. AA- 7.375 05/15/06 135,000 137,742
</TABLE>
See Notes To Financial Statements
16
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
SEMICONDUCTOR - 3.3%
Texas Instruments, Inc. A 8.750 04/01/07 $ 125,000 $ 139,621
TELECOMMUNICATIONS SERVICE - 7.0%
AT&T Corporation AA- 7.750 03/01/07 90,000 94,388
GTE Southwest, Inc. AA- 5.820 12/01/99 100,000 98,658
Pacific Bell Telephone Co. AA- 7.000 07/15/04 100,000 100,719
TOBACCO - 2.3%
Philip Morris Companies, Inc. A 6.375 02/01/06 100,000 94,513
U.S. GOVERNMENT - 0.4%
U.S. Treasury 6.250 02/15/07 15,000 14,681
----------
TOTAL FIXED-INCOME SECURITIES - 98.0%
(Cost $3,995,097) $4,104,315
==========
</TABLE>
See Notes To Financial Statements
17
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
ADVERTISING - 0.3%
Catalina Marketing Corporation* 2,000 $ 96,250
CKS Group, Inc.* 1,000 33,750
Heritage Media Corporation* 2,000 37,750
Outdoor Systems, Inc.* 2,000 76,500
AEROSPACE / DEFENSE - 0.8%
BE Aerospace, Inc.* 2,000 63,250
Boeing Company 3,400 180,625
General Motors Corp. - Class H 1,500 86,625
Lockheed Martin Corporation 2,000 207,125
McDonnell Douglas Corporation 1,800 123,300
Raytheon Company 1,700 86,700
AIR TRANSPORT - 0.3%
Air Express International Corp. 1,600 63,600
Atlantic Southeast Airlines, Inc. 1,800 51,525
Comair Holdings, Inc. 1,575 43,608
Pittston Brink's Group 3,000 90,000
APPAREL - 0.4%
Gucci Group 600 38,625
Nautica Enterprises, Inc.* 1,800 47,588
Quiksilver, Inc.* 1,500 48,000
VF Corporation 1,800 153,225
Warnaco Group, Inc. 1,500 47,812
AUTO PARTS - 0.3%
Borg-Warner Automotive, Inc. 2,000 108,125
Dana Corporation 2,600 98,800
Genuine Parts Company 3,000 101,625
AUTO & TRUCK - 0.3%
Ford Motor Company 3,500 133,000
General Motors Corporation 2,400 133,650
BANK - 5.5%
Bank of Boston Corporation 2,540 183,039
Bank of New York Company, Inc. 2,800 121,800
BankAmerica Corporation 2,000 129,000
Barnett Banks, Inc. 10,400 546,000
Chase Manhattan Corporation 4,840 469,782
City National Corporation 1,600 38,500
First American Corporation 4,400 168,850
First Bank Systems, Inc. 1,300 110,988
First Chicago NBD Corporation 3,500 211,750
First Tennessee National Corp. 5,800 278,400
First Union Corporation 5,800 536,500
J.P. Morgan & Company 2,000 208,750
KeyCorp 4,000 223,500
Mellon Bank Corporation 5,400 243,675
Mercantile Bancorporation, Inc. 2,050 124,538
National City Corporation 2,000 105,000
NationsBank Corporation 8,000 516,000
Northern Trust Corporation 1,200 58,050
Norwest Corporation 900 50,625
PNC Bank Corporation 4,000 166,500
State Street Boston Corporation 2,400 111,000
Wells Fargo & Company 933 251,443
BEVERAGE - 0.6%
Anheuser-Busch Companies, Inc. 7,400 310,337
Coca-Cola Company 1,000 69,813
PepsiCo, Inc. 3,000 112,688
Robert Mondavi Corporation* 1,500 70,875
BIOTECHNOLOGY-0.0%
Human Genome Sciences, Inc.* 1,200 39,900
</TABLE>
See Notes To Financial Statements
18
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
BROADCASTING / CABLE TV - 0.6%
A.H. Belo Corporation 1,400 $ 58,275
Clear Channel Communications* 2,200 135,438
Cox Communications, Inc.* 1,500 36,000
Emmis Broadcasting Corporation* 1,500 65,438
Evergreen Media Corporation* 1,200 53,550
Jacor Communications, Inc.* 1,500 57,375
U.S. West Media Group* 4,000 81,000
Westwood One, Inc.* 1,700 54,825
BUILDING MATERIALS - 0.1%
Armstrong World Industries, Inc. 1,500 110,062
CHEMICAL - 2.2%
A. Schulman, Inc. 2,000 49,250
Airgas, Inc.* 4,000 79,250
B.F. Goodrich Company 2,000 86,625
duPont, E.I. de Nemours & Co. 7,000 441,000
Lilly Industries, Inc. 1,500 30,188
Minnesota Mining & Manufacturing 2,000 204,000
Monsanto Company 8,000 344,500
Raychem Corporation 1,000 74,375
Rohm & Haas Company 1,000 90,063
Sherwin-Williams Company 4,000 123,500
Sigma-Aldrich Corporation 1,500 52,594
Union Carbide Corporation 2,100 98,831
WD-40 Company 2,800 168,000
Witco Corporation 2,700 102,600
COMPUTER & PERIPHERALS - 0.8%
3COM Corporation, Inc.* 2,050 92,250
Cisco Systems, Inc.* 1,300 87,263
EMC Corporation* 2,000 78,000
Hewlett-Packard Company 3,100 173,600
Microchip Technology, Inc.* 1,500 44,625
SCI Systems, Inc.* 1,000 63,750
Sun Microsystems, Inc.* 2,200 81,881
Xilinx, Inc.* 2,100 103,031
COMPUTER SOFTWARE & SERVICES - 2.1%
Adobe Systems, Inc. 1,200 42,075
Automatic Data Processing, Inc. 4,000 188,000
BMC Software, Inc.* 2,000 110,750
Cadence Design Systems, Inc.* 1,350 45,225
Cambridge Technology Partners, Inc.* 2,000 64,000
CBT Group PLC* 1,000 63,125
Ceridian Corporation* 2,000 84,500
Cognizant Corporation 1,600 64,800
Cognos, Inc.* 2,100 65,363
Compuware Corporation* 2,000 95,500
First Data Corporation 1,488 65,379
Forte Software, Inc.* 1,600 21,500
HBO & Company 2,000 137,750
Intuit, Inc.* 1,700 38,994
McAfee Associates, Inc.* 1,200 75,750
Oracle Corporation* 2,525 127,197
Peoplesoft, Inc.* 1,600 84,400
PMT Services, Inc.* 2,000 30,500
Rational Software Corporation* 1,400 23,538
Remedy Corporation* 1,200 48,000
Security Dynamics Tech., Inc.* 1,400 51,625
Shared Medical Systems Corp. 900 48,600
Sterling Commerce, Inc.* 1,300 42,737
Symantec Corporation* 2,400 46,800
Synopsys, Inc.* 2,000 73,500
Visio Corporation* 1,300 91,650
DIVERSIFIED - 1.4%
AlliedSignal, Inc. 5,100 428,400
Danaher Corporation 1,000 50,813
Service Corp. International 4,200 138,075
Textron, Inc. 3,000 199,125
Thermo Electron Corporation* 1,350 45,900
Tomkins PLC 4,900 87,587
TRW, Inc. 2,000 113,625
United Technologies Corporation 2,200 182,600
</TABLE>
See Notes To Financial Statements
19
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
DRUG - 3.6%
American Home Products Corp. 3,400 $ 260,100
Amgen, Inc.* 1,100 63,937
BioChem Pharma, Inc.* 2,200 48,950
Biogen, Inc.* 2,000 67,750
Bristol-Myers Squibb Company 12,400 1,004,400
Gilead Sciences, Inc.* 1,000 27,625
Guilford Pharmaceuticals, Inc.* 1,500 36,375
Merck & Company, Inc. 6,000 621,000
Pfizer, Inc. 3,000 359,250
Schering-Plough Corporation 4,000 191,500
TheraTech, Inc.* 3,500 41,125
Warner-Lambert Company 3,800 472,150
DRUGSTORE - 0.1%
Rite Aid Corporation 2,000 99,750
ELECTRIC & GAS UTILITIES - 2.6%
AES Corporation* 600 42,450
Baltimore Gas & Electric Company 5,700 152,119
CMS Energy Corporation 2,300 81,075
Consolidated Edison Co. of N.Y. 1,900 55,931
Duke Power Company 8,935 428,337
Edison International 6,500 161,688
Entergy Corporation 4,000 109,500
Florida Progress Corporation 5,500 172,219
General Public Utilities Corp. 3,600 129,150
Hawaiian Electric Industries, Inc. 2,300 88,838
Northern States Power Company 2,500 129,375
Ohio Edison Company 4,500 97,875
PacifiCorp 8,400 184,800
Public Service of Colorado 4,700 195,344
TECO Energy, Inc. 7,700 196,831
Texas Utilities Company 3,500 120,531
ELECTRICAL EQUIPMENT - 1.9%
Corning, Inc. 2,500 139,063
Emerson Electric Company 5,000 275,313
General Electric Company 16,400 1,072,150
Hubbell, Inc. 3,200 140,800
Littlefuse, Inc.* 2,000 56,500
ELECTRONICS - 0.5%
Altera Corporation* 2,000 101,000
Checkpoint Systems, Inc.* 2,000 32,125
Harman International Industries 1,050 44,231
Lam Research Corporation* 1,300 48,181
Molex, Inc. 2,343 81,712
Symbol Technologies, Inc.* 3,000 100,875
Thermedics, Inc.* 2,000 31,375
Ultratech Stepper, Inc.* 1,000 22,875
ENVIRONMENTAL - 0.4%
Browning-Ferris Industries, Inc. 3,000 99,750
Superior Services, Inc.* 3,100 73,625
U.S. Filter Corporation* 1,200 32,700
USA Waste Services, Inc.* 1,000 38,625
WMX Technologies, Inc. 4,500 144,562
FINANCIAL SERVICES - 2.0%
American Express Company 5,000 374,687
Countrywide Credit Industries, Inc. 4,000 124,750
CUC International, Inc.* 3,432 88,589
Finova Group, Inc. 1,000 76,500
First USA, Inc. 2,800 163,625
Franklin Resources, Inc. 1,500 108,844
Green Tree Financial Corporation 2,000 71,250
Household International, Inc. 1,000 117,437
Mutual Risk Management, Ltd. 3,333 152,901
Paychex, Inc. 2,250 85,500
Student Loan Marketing Association 800 101,600
Travelers, Inc. 3,600 227,025
United Asset Management Corp. 2,000 56,875
</TABLE>
See Notes To Financial Statements
20
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
FOOD PROCESSING - 1.0%
Goodmark Foods, Inc. 5,200 $ 97,500
Heinz(H.J) Company 3,500 161,437
Hershey Foods Corp. 2,800 154,875
International Multifoods Corporation 1,500 37,688
Kellogg Company 1,500 128,438
Quaker Oats Company 2,000 89,750
Sara Lee Corporation 4,500 187,312
Tootsie Roll Industries, Inc. 1,236 55,002
FOREIGN TELECOMMUNICATIONS - 0.4%
BCE, Inc. 4,400 123,200
Ericsson Telephone 1,800 70,875
Reuters Holdings PLC 1,000 63,000
Vodafone Group PLC 2,100 101,719
GROCERY - 0.3%
Albertson's, Inc. 2,900 105,850
Richfood Holdings, Inc. 2,000 52,000
Safeway, Inc.* 2,000 92,250
HOMEBUILDING - 0.3%
Lennar Corporation 1,700 54,294
Rouse Company 7,000 206,500
HOTEL / GAMING - 0.2%
HFS, Inc.* 1,500 87,000
La Quinta Inns, Inc. 1,500 32,813
Mirage Resorts, Inc.* 2,000 50,500
HOUSEHOLD PRODUCTS - 1.6%
Amway Asia Pacific Ltd. 1,000 43,625
Clorox Company 1,900 250,800
Colgate-Palmolive Company 6,200 404,550
First Brands Corporation 2,000 45,875
Kimberly-Clark Corporation 5,800 288,550
Lancaster Colony Corporation 1,000 48,375
Proctor & Gamble Company 1,200 169,200
Sunbeam Corporation, Inc. 1,600 60,400
Tupperware Corporation* 2,000 73,000
INDUSTRIAL SERVICES - 0.9%
AccuStaff, Inc.* 2,000 47,375
Apollo Group, Inc.* 1,500 52,875
Equifax, Inc. 4,600 171,063
Interim Services* 1,116 49,662
Kelly Services, Inc. 700 21,963
Manpower, Inc. 1,500 66,750
Primark Corporation* 1,800 47,925
Quintiles Transnational Corporation* 1,000 69,625
Robert Half International, Inc.* 1,500 70,594
Sitel Corporation* 2,400 49,500
Sylvan Learning Systems, Inc.* 3,450 117,300
Vincom Group, Inc.* 1,200 44,700
INSURANCE - 2.6%
Ace, Ltd. 1,000 73,875
AFLAC, Inc. 2,400 113,400
Allstate Corporation 3,615 263,895
AMBAC, Inc. 1,300 99,287
American International Group, Inc. 4,125 616,172
Equitable of Iowa Companies 2,100 117,600
Hartford Financial Services Group, Inc. 2,000 166,250
Marsh & McLennan Companies, Inc. 2,000 142,750
MBIA, Inc. 1,500 169,219
MGIC Investment Corporation 2,000 95,875
Oxford Health Plans, Inc.* 1,600 114,800
Progressive Corporation of Ohio 1,000 87,000
St. Paul Companies, Inc. 2,700 205,875
Vesta Insurance Group, Inc. 1,000 43,250
Zurich Reinsurance Centre Hold.* 1,000 39,500
</TABLE>
See Notes To Financial Statements
21
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
MACHINERY - 1.3%
Aeroquip-Vickers, Inc. 2,100 $ 102,112
AGCO Corporation 2,000 71,875
Alamo Group, Inc. 1,500 31,219
Briggs & Stratton Corporation 1,200 60,000
Caterpillar, Inc. 1,800 193,725
Deere & Company 4,200 230,475
Dover Corporation 5,200 319,800
Greenfield Industries, Inc. 1,400 37,800
IDEX Corporation 2,000 66,000
Parker-Hannifin Corporation 1,050 63,722
MANUFACTURED HOUSING - 0.1%
Oakwood Homes Corporation 2,000 48,000
MEDICAL SERVICES - 1.1%
ABR Information Services, Inc.* 1,600 46,400
Apria Healthcare Group, Inc.* 1,000 17,687
Health Care & Retirement Corp.* 3,700 123,488
Health Management Associates* 3,712 105,792
Lincare Holdings, Inc.* 1,000 43,000
MedPartners/Mullikin, Inc.* 2,000 43,250
Omnicare, Inc. 2,800 87,850
Orthodontic Ctrs. of America, Inc.* 1,400 25,463
PacifiCare Health Systems, Inc.* 700 44,713
PhyCor, Inc.* 1,500 51,656
Quorum Health Group, Inc.* 1,000 35,750
Renal Treatment Centers, Inc.* 1,700 45,687
Tenet Healthcare Corporation* 2,025 59,737
United HealthCare Corporation 1,300 67,600
Universal Health Services, Inc.* 2,200 84,700
Vencor, Inc.* 3,100 134,075
MEDICAL SUPPLIES - 1.4%
Abbott Laboratories 3,600 240,300
Baxter International, Inc. 3,000 156,750
Boston Scientific Corporation* 2,498 153,471
Cardinal Health, Inc. 1,800 103,050
Guidant Corporation 1,000 85,000
Johnson & Johnson 2,560 163,200
Life Technologies, Inc. 1,800 49,950
Medtronic, Inc. 1,800 145,800
Sola International, Inc.* 1,500 49,500
Sybron Corporation* 2,000 79,750
VISX, Inc.* 1,000 23,750
METAL FABRICATING - 0.0%
Kennametal, Inc. 1,000 43,000
METALS & MINING - 0.5%
Aluminum Company of America 4,000 301,500
Inco Limited 2,000 60,125
Placer Dome, Inc. 4,000 65,500
NATURAL GAS - 0.4%
Enron Corporation 5,400 220,388
Sonat, Inc. 1,800 92,475
NEWSPAPER - 0.3%
Central Newspapers, Inc. 1,000 71,625
Gannett Company, Inc. 1,900 187,625
OFFICE EQUIPMENT & SUPPLIES - 0.5%
Diebold, Inc. 1,400 54,600
Ikon Office Solutions, Inc. 1,800 44,888
Pitney Bowes, Inc. 2,000 142,500
Reynolds & Reynolds Company 5,600 88,200
Unisource Worldwide, Inc. 1,900 30,400
Wallace Computer Services, Inc. 1,500 45,094
OILFIELD SERVICES - 1.0%
Baker Hughes, Inc. 4,000 154,750
Camco International, Inc. 1,000 54,750
Halliburton Company 3,500 277,375
</TABLE>
See Notes To Financial Statements
22
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
OILFIELD SERVICES - 1.0% (Continued)
Pride Petroleum Services, Inc.* 2,800 $ 67,200
Schlumberger, Ltd. 1,000 125,000
Smith International, Inc.* 2,300 139,725
Triton Energy Corporation* 1,200 54,975
PACKAGING & CONTAINER - 0.1%
Triton Energy Corporation* 2,000 95,000
PAPER & FOREST PRODUCTS - 0.8%
Georgia Pacific Corporation 1,400 119,525
International Paper Company 8,000 388,500
James River Corporation 3,000 111,000
Weyerhaeuser Company 2,200 114,400
PETROLEUM - 4.4%
Amerada Hess Corporation 1,300 72,231
Amoco Corporation 2,400 208,650
Apache Corporation 1,800 58,500
Ashland Oil, Inc. 1,800 83,475
Atlantic Richfield Company 2,000 141,000
British Petroleum Co. PLC 4,000 299,500
Devon Energy Corporation 1,500 55,125
Exxon Corporation 12,600 774,900
Mobil Corporation 10,000 698,750
Noble Affiliates, Inc. 2,800 108,325
Phillips Petroleum Company 3,000 131,250
Repsol SA 2,500 106,094
Royal Dutch/Shell Transport Group 13,600 734,400
Tosco Corporation 3,000 89,812
Union Texas Petroleum Holdings 6,700 140,281
United Meridian Corporation* 1,500 45,000
USX-Marathon Group 4,500 129,937
PRECISION INSTRUMENT - 0.4%
Coherent, Inc.* 1,100 48,950
Dionex Corporation* 1,000 51,250
Eastman Kodak Company 2,900 222,575
Teleflex, Inc. 2,000 62,500
PRINTING - 0.1%
R.R. Donnelley & Sons Company 2,500 91,563
PUBLISHING - 0.5%
Harcourt General, Inc. 1,200 57,150
McGraw-Hill, Inc. 4,000 235,250
Scholastic Corporation* 1,000 35,000
Value Line, Inc. 2,500 108,125
RAILROAD - 0.4%
Kansas City Southern Ind., Inc. 2,000 129,000
Union Pacific Corporation 2,000 141,000
Wisconsin Central Transportation* 3,000 111,750
REAL ESTATE INVESTMENT TRUST - 1.7%
CarrAmerica Realty Corporation 5,000 143,750
Federal Realty Investment Trust 4,800 129,600
Meditrust Corporation 4,500 179,156
National Health Investors, Inc. 1,600 62,800
Nationwide Health Properties, Inc. 7,500 165,000
Security Capital Industrial Trust 7,908 170,022
Security Capital Pacific Trust 2,000 45,750
Simon DeBartolo Group, Inc. 3,400 108,800
Starwood Lodging Trust 6,900 294,544
United DOminion Realty Trust, Inc. 8,124 115,259
Weingarten Realty Investors 3,200 135,600
RECREATION - 0.9%
Brunswick Corporation 3,000 93,750
Callaway Golf Company 1,400 49,700
Carmike Cinemas, Inc.* 3,000 98,250
Carnival Corporation 2,000 82,500
Gaylord Entertainment Company 1,102 25,415
</TABLE>
See Notes To Financial Statements
23
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
RECREATION - 0.9% (Continued)
Harley-Davidson, Inc. 2,000 $ 95,875
Time Warner, Inc. 2,200 106,150
Walt Disney Company 3,000 240,750
RESTAURANT - 0.2%
McDonald's Corporation 2,500 120,781
Outback Steakhouse, Inc.* 2,250 54,422
RETAIL STORE - 2.2%
AutoZone, Inc.* 1,500 35,344
Bed Bath & Beyond, Inc.* 4,000 121,500
Borders Group, Inc.* 3,000 72,375
CDW Computer Centers, Inc.* 1,000 53,062
Circuit City Stores, Inc. 2,200 78,237
CompUSA, Inc.* 2,200 47,300
Dayton Hudson Corporation 4,000 212,750
Dollar General Corporation 5,000 188,750
Gymboree Corporation* 1,400 33,600
J.C. Penney Company 1,618 84,439
Lands' End, Inc.* 2,200 65,175
Men's Wearhouse, Inc.* 1,500 47,250
MSC Industrial Direct Co., Inc.* 1,500 60,000
OfficeMax, Inc.* 3,400 49,088
Pep Boys-Manny, Moe & Jack 1,000 33,875
PETsMART, Inc.* 1,700 19,550
Sears, Roebuck & Company 3,900 209,625
Starbucks Corporation* 4,000 155,750
Tandy Corporation 1,600 89,600
The Sports Authority, Inc.* 2,600 50,537
Tiffany & Company 1,300 60,044
TJX Companies, Inc. 2,200 58,025
Viking Office Products, Inc.* 2,200 41,800
Williams-Sonoma, Inc.* 1,500 64,125
Zale Corporation* 2,200 43,587
SECURITIES BROKERAGE - 0.7%
Bear Stearns Companies, Inc. 2,791 95,417
Charles Schwab Corporation 3,000 122,062
Investment Technology Group* 2,900 77,938
Merrill Lynch & Company, Inc. 2,400 143,100
Morgan Stanley, Dean Witter, Discover a 4,000 172,250
SEMICONDUCTOR - 1.1%
Atmel Corporation* 2,000 56,000
Intel Corporation 2,400 340,350
Linear Technology Corporation 2,200 113,850
Maxim Integrated Products, Inc.* 2,400 136,500
Motorola, Inc. 1,000 76,000
SDL, Inc.* 1,500 28,687
Texas Instruments, Inc. 2,400 201,750
SHOE - 0.1%
Wolverine World Wide, Inc. 2,362 71,746
STEEL - 0.2%
Nucor Corporation 2,300 131,675
Worthington Industries 4,000 73,250
TELECOMMUNICATIONS EQUIPMENT - 0.4%
Andrew Corporation* 1,362 38,306
Ascend Communications, Inc.* 1,500 59,062
Aspect Telecommunications Corp.* 2,000 44,500
Cascade Communications Corp.* 1,500 41,437
Coherent Commun. Systems Corp.* 1,500 37,500
DSP Communications, Inc.* 1,600 17,600
Tellabs, Inc.* 2,400 134,100
TELECOMMUNICATIONS SERVICE - 2.9%
360 Communications Company* 1,800 30,825
ALLTEL Corporation 4,500 150,469
Ameritech Corporation 3,000 203,812
</TABLE>
See Notes To Financial Statements
24
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ ------ -----------
<S> <C> <C>
TELECOMMUNICATIONS SERVICE - 2.9%(Continued)
AT&T Corporation 1,500 $ 52,594
Bell Atlantic Corporation 4,100 311,087
BellSouth Corporation 10,000 463,750
Centennial Cellular Corporation* 1,000 15,875
Cincinnati Bell Inc. 4,000 126,000
CommNet Cellular, Inc.* 1,000 34,750
GTE Corporation 11,500 501,688
InterCel, Inc.* 2,500 34,375
SBC Communications, Inc. 5,900 365,062
Southern New England Tele. Corp. 2,000 77,750
United States Cellular Corporation* 1,100 32,587
WorldCom, Inc.* 1,700 54,400
TEXTILES - 0.1%
Unifi, Inc. 1,300 48,587
THRIFT - 0.5%
Federal Home Loan Mortgage Corp. 4,000 138,500
Federal National Mortgage Assoc. 6,800 296,650
JSB Financial Corporation 1,000 43,250
TIRE & RUBBER - 0.2%
Goodyear Tire & Rubber Company 2,600 164,613
TOBACCO - 0.9%
Fortune Brands, Inc. 2,000 74,625
Gallaher Group PLC 2,000 36,875
Philip Morris Companies, Inc. 12,900 572,438
UST, Inc. 3,000 83,250
TOILETRIES / COSMETICS - 0.6%
Alberto-Culver Company 1,400 39,200
Gillette Company 3,000 284,250
Int'l Flavors & Fragrances, Inc. 5,000 252,500
TOYS - 0.1%
Mattel, Inc. 3,125 105,859
TRUCKING & TRANSPORT LEASING - 0.1%
Werner Enterprise, Inc. 3,150 61,031
WATER UTILITY-0.1%
American Water Works Co., Inc. 4,500 96,187
-----------
TOTAL COMMON STOCK - 60.3%
(Cost $31,245,689) $53,699,102
===========
</TABLE>
* Securities are non-income producing
See Notes To Financial Statements
25
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
AEROSPACE / DEFENSE - 0.8%
Lockheed Martin Corporation BBB+ 9.375 10/15/99 $ 100,000 $ 106,038
Lockheed Martin Corporation BBB+ 7.650 05/01/16 500,000 510,624
Rockwell International Corp. AA 8.875 09/15/99 100,000 104,875
AIR TRANSPORT - 0.4%
Federal Express Corporation BBB+ 8.760 05/22/15 350,000 369,880
AUTO PARTS - 0.5%
Eaton Corporation A 7.000 04/01/11 500,000 477,500
AUTO & TRUCK - 0.6%
General Motors Corporation A- 9.125 07/15/01 500,000 540,903
BANK - 4.2%
Bankers Trust New York Corp. A- 9.500 06/14/00 250,000 269,037
Chase Manhattan Corp. A- 6.750 08/15/08 400,000 383,875
Comerica Bank A- 7.125 12/01/13 500,000 475,000
First Chicago NBD Corporation A 8.100 03/01/02 500,000 523,438
First Union Corporation A- 8.000 08/15/09 500,000 518,867
First Union Corporation A- 9.450 06/15/99 100,000 105,076
Morgan, J.P. & Company AA 8.500 08/15/03 500,000 540,504
NationsBank Corporation A 6.500 03/15/06 500,000 479,685
Royal Bank of Scotland A+ 6.375 02/01/11 500,000 455,878
BEVERAGE - 0.3%
Anheuser Busch Companies, Inc. A+ 8.500 03/01/17 220,000 227,879
CHEMICAL - 0.6%
Monsanto Company A 8.875 12/15/09 500,000 572,150
DIVERSIFIED - 1.8%
Tenneco, Inc. BBB 7.625 06/15/17 500,000 501,904
Textron, Inc. A- 8.750 07/01/22 500,000 532,132
Whitman Corporation BBB+ 8.250 02/15/07 500,000 536,169
</TABLE>
See Notes To Financial Statements
26
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ELECTRIC & GAS UTILITIES - 5.9%
Alabama Power Company A+ 8.500 05/01/22 $ 500,000 $ 517,929
Dayton Power & Light Company AA- 8.150 01/15/26 500,000 516,766
Duke Energy Corporation A+ 6.375 03/01/08 500,000 464,532
Florida Power & Light Company AA- 7.875 01/01/13 500,000 510,220
Georgia Power Company A+ 7.625 03/01/23 450,000 439,456
Hydro Quebec A+ 7.000 03/01/05 500,000 492,436
Monongahela Power A+ 8.500 06/01/22 500,000 517,737
Potomac Edison Company A+ 7.750 05/01/25 500,000 498,524
Public Service Electric & Gas A- 7.000 09/01/24 200,000 182,938
Union Electric Company AA- 8.750 12/01/21 500,000 533,680
Virginia Electric & Power Company A 8.000 03/01/04 500,000 528,901
FINANCIAL SERVICES - 3.9%
Deere, John Capital Corporation A 8.625 08/01/19 500,000 520,730
Dow Capital BV A 8.700 05/15/22 250,000 272,800
Fairfax Financial Holdings BBB+ 8.250 10/01/15 500,000 518,750
Fletcher Challenge Capital Canada, Inc. BBB 8.250 06/20/16 500,000 528,398
Ford Holdings, Inc. A+ 9.250 03/01/00 475,000 503,500
General Electric Capital Corporation AAA 7.750 03/15/02 500,000 521,915
SunAmerica, Inc. A 8.125 04/28/23 500,000 513,001
FOOD PROCESSING - 0.8%
Kraft, Inc. A 8.500 02/15/17 250,000 254,905
Nabisco, Inc. BBB 7.050 07/15/07 500,000 491,875
FOREIGN GOVERNMENT - 1.7%
Province of Nova Scotia A- 7.250 07/27/13 500,000 488,038
Province of Quebec A+ 8.800 04/15/03 350,000 380,797
Province of Saskatchewan A- 9.375 12/15/20 525,000 621,359
GOVERNMENTAL AGENCY - 0.6%
Federal National Mortgage Association Not Rated 5.520 04/13/98 500,000 495,830
HOTEL / GAMING - 0.5%
ITT Corporation BBB 7.375 11/15/15 500,000 460,469
</TABLE>
See Notes To Financial Statements
27
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
INSURANCE - 2.3%
Chubb Corporation AA+ 8.750 11/15/99 $ 59,000 $ 60,810
CIGNA Corporation A- 8.250 01/01/07 500,000 534,415
Leucadia National Corporation BBB+ 7.750 08/15/13 500,000 482,500
MBIA, Inc. AA 9.375 02/15/11 500,000 594,619
Metropolitan Life Insurance Co.* A+ 7.450 11/01/23 450,000 415,015
MACHINERY - 0.5%
Case Corporation A- 7.250 01/15/16 500,000 475,315
MEDICAL SUPPLIES - 1.2%
Cardinal Health, Inc. A- 6.000 01/15/06 500,000 466,244
Johnson & Johnson AAA 8.720 11/01/24 550,000 604,544
METALS & MINING - 0.5%
Placer Dome, Inc. BBB 7.750 06/15/15 500,000 481,354
NATURAL GAS - 0.5%
Enron Corporation BBB+ 7.000 08/15/23 500,000 451,178
NEWSPAPER - 0.5%
Knight-Ridder, Inc. A 9.875 04/15/09 100,000 122,965
Tribune Company A 8.450 02/25/98 300,000 304,667
OFFICE EQUIPMENT & SUPPLIES - 0.2%
Xerox Corporation A 9.750 03/15/00 200,000 215,668
PACKAGING & CONTAINER - 0.5%
Crown Cork & Seal Company, Inc. BBB+ 8.375 01/15/05 390,000 419,253
PETROLEUM - 2.0%
Atlantic Richfield Company A 8.500 04/01/12 250,000 279,049
Louisiana Land & Exploration Co. BBB 7.625 04/15/13 500,000 507,783
OXY USA, Inc. BBB 7.000 04/15/11 525,000 496,076
Phillips Petroleum Company A- 8.860 05/15/22 500,000 536,142
</TABLE>
See Notes To Financial Statements
28
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ---------------------------------------- ------ ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
PUBLISHING - 0.6%
News America Holdings BBB 8.000 10/17/16 $ 500,000 $ 498,718
RESTAURANT - 0.5%
Darden Restaurants, Inc. BBB 7.125 02/01/16 500,000 452,500
RETAIL STORE - 0.8%
Dayton Hudson Corporation BBB+ 9.625 02/01/08 200,000 234,541
Kmart Corporation B+ 8.125 12/01/06 500,000 490,000
SECURITIES BROKERAGE - 1.5%
Bear Stearns Companies, Inc. A 7.250 10/05/06 500,000 499,219
Lehman Brothers Holdings, Inc. A 8.500 08/01/15 500,000 537,787
Salomon, Inc. BBB 9.450 03/15/00 300,000 306,321
TELECOMMUNICATIONS SERVICE - 2.0%
AT&T Corporation AA- 7.125 01/15/02 500,000 508,282
Michigan Bell Telephone AAA 7.500 02/15/23 500,000 492,824
NYNEX Corporation A+ 7.375 12/15/11 250,000 246,332
Southwestern Bell Telephone Company AA 7.375 05/01/12 525,000 517,081
TOBACCO - 0.5%
Philip Morris Companies, Inc. A 9.000 01/01/01 400,000 426,614
U.S. GOVERNMENT - 1.7%
U.S. Treasury 6.500 08/15/05 1,500,000 1,496,016
-----------
TOTAL FIXED-INCOME SECURITIES - 38.4%
(Cost $34,039,775) 34,160,732
TOTAL COMMON STOCK - 60.3%
(Cost $31,245,689) 53,699,102
-----------
TOTAL INVESTMENTS IN SECURITIES - 98.7%
(Cost $65,285,464) $87,859,834
===========
</TABLE>
* Security exempt from registration under Rule 144A of the
Securities Act of 1933
See Notes To Financial Statements
29
<PAGE>
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ ------ ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
AIR TRANSPORT - 2.6%
Federal Express Corporation BBB 9.650 06/15/12 $ 25,000 $ 29,413
BANK - 2.4%
Westpac Banking Corporation A+ 9.125 08/15/01 25,000 27,100
BEVERAGE - 2.3%
Coca-Cola Enterprises, Inc. A+ 8.000 09/15/22 25,000 26,473
DIVERSIFIED - 5.1%
AlliedSignal, Inc. A 9.500 06/01/16 25,000 30,509
United Technologies Corporation A+ 8.750 03/01/21 25,000 28,625
ELECTRIC & GAS UTILITIES - 9.6%
Consolidated Edison Co. of N.Y., Inc. A+ 7.375 09/01/05 25,000 25,154
Florida Power Corporation AA- 8.625 11/01/21 50,000 53,383
Houston Lighting & Power Co. A- 8.750 03/01/22 30,000 31,948
FINANCIAL SERVICES - 14.6%
Ford Motor Credit Corporation A+ 6.375 11/05/08 155,000 145,022
Loews Corporation AA- 7.000 10/15/23 25,000 22,578
FOREIGN GOVERNMENT - 2.2%
Province of Ontario AA- 7.375 01/27/03 25,000 25,742
INSURANCE - 2.2%
CIGNA Corporation A- 7.400 01/15/03 25,000 25,542
MACHINERY - 2.4%
Caterpillar, Inc. A+ 9.750 06/01/19 25,000 27,411
NATURAL GAS - 2.2%
NOVA Gas Transmission Ltd. A- 7.875 04/01/23 25,000 25,433
PAPER & FOREST PRODUCTS - 2.3%
Georgia-Pacific Corporation BBB- 9.125 07/01/22 25,000 26,423
</TABLE>
See Notes To Financial Statements
30
<PAGE>
ADVANCE CAPITAL I, INC. - LONG TERM INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ ------ ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 4.8%
Lehman Brothers Holdings, Inc. A 7.625 07/15/99 $ 25,000 $ 25,398
Salomon, Inc. BBB 6.750 01/15/06 30,000 28,671
TELECOMMUNICATIONS SERVICE - 4.3%
GTE Corporation A 7.830 05/01/23 50,000 49,619
U. S. GOVERNMENT - 40.8%
U.S. Treasury 7.625 11/15/22 185,000 201,419
U.S. Treasury 6.625 05/15/07 265,000 267,236
----------
TOTAL FIXED-INCOME SECURITIES - 97.8%
(Cost $1,121,125) $1,123,099
==========
</TABLE>
See Notes To Financial Statements
31
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ ---------- ------------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 1.0%
Heritage Media Corporation B 02/15/06 8.750 $ 500,000 $ 516,250
Lamar Advertising Company B 12/01/06 9.625 700,000 728,000
Universal Outdoor, Inc. B 10/15/06 9.750 500,000 517,500
AEROSPACE / DEFENSE - 1.2%
AAR Corporation BBB 10/15/03 7.250 500,000 486,567
Lockheed Martin Corporation BBB+ 03/15/23 7.875 500,000 511,850
McDonnell Douglas Corporation A- 04/01/12 9.750 1,000,000 1,217,813
AIR TRANSPORT - 2.5%
AMR Corporation BBB- 08/01/12 9.000 1,000,000 1,123,137
AMR Corporation BBB- 03/15/00 9.750 100,000 107,250
Delta Air Lines, Inc. BB+ 02/01/11 10.375 500,000 607,188
Federal Express Corporation BBB+ 01/01/15 7.630 1,000,000 1,026,020
Northwest Airlines Corporation BB- 03/15/07 8.700 500,000 512,500
United Airlines, Inc. BB+ 07/15/21 10.250 500,000 620,000
United Airlines, Inc. BB+ 08/15/21 9.750 500,000 587,264
APPAREL - 1.4%
Fruit of the Loom, Inc. BBB 03/15/11 7.000 1,000,000 928,027
Phillips-Van Heusen Corp. BB+ 11/15/23 7.750 1,000,000 845,692
Platex Family Products Corp. B 12/15/03 9.000 750,000 761,250
AUTO PARTS - 0.9%
JPS Automotive Products Corp. B 06/15/01 11.125 500,000 550,000
Titan International, Inc. BB- 04/01/07 8.750 500,000 498,410
Walbro Corporation B+ 07/15/05 9.875 500,000 527,858
AUTO & TRUCK - 1.6%
Ford Motor Company A+ 11/15/22 8.875 2,000,000 2,180,944
General Motors Corporation A- 04/15/16 8.125 700,000 707,534
BANK - 5.8%
Banc One Corporation A+ 07/15/25 7.750 1,000,000 1,003,126
Bank of Boston Corporation BBB+ 12/01/05 6.625 1,000,000 965,094
Bankers Trust New York Corp. A- 11/15/15 7.500 1,500,000 1,479,331
</TABLE>
See Notes To Financial Statements
32
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
BANK - 5.8% (Continued)
Chase Manhattan Corp. A- 10/15/08 6.125 $1,000,000 $ 912,501
Comerica Bank A- 12/01/13 7.125 1,000,000 950,000
First Union Corporation A- 08/15/09 8.000 500,000 518,867
KeyCorp BBB+ 03/15/06 6.750 1,000,000 968,819
NCNB Corporation A 07/15/15 10.200 1,000,000 1,271,349
Republic New York Corporation AA 05/15/21 9.125 1,000,000 1,174,924
Royal Bank of Scotland A+ 02/01/11 6.375 1,000,000 911,757
Westpac Banking Corporation A+ 08/15/01 9.125 500,000 542,005
BEVERAGE - 0.2%
Anheuser Busch Companies, Inc. A+ 03/01/17 8.500 386,000 399,825
BROADCASTING / CABLE TV - 5.4%
Cablevision Systems Corporation B 05/15/06 9.875 750,000 798,750
Century Communications Corp. BB- 02/15/02 9.750 250,000 260,000
Century Communications Corp. BB- 03/01/05 9.500 1,000,000 1,025,001
Comcast Cablevision BB+ 01/15/08 9.500 500,000 524,532
Comcast Cablevision BB+ 05/15/05 9.375 500,000 526,250
Continental Cablevision, Inc. BBB+ 08/01/13 9.500 500,000 565,442
Jacor Communications Company B 12/15/06 9.750 750,000 795,000
Jones Intercable, Inc. BB 04/01/07 8.875 500,000 507,500
Jones Intercable, Inc. B+ 03/01/08 10.500 200,000 215,188
Lenfest Communications, Inc. BB+ 11/01/05 8.375 1,000,000 980,000
Rogers Cablesystems Ltd. BB+ 03/15/05 10.000 500,000 538,126
Sinclair Broadcast Group, Inc. B 09/30/05 10.000 500,000 517,500
Sinclair Broadcast Group, Inc. B 12/15/03 10.000 575,000 598,028
Tele-Communications, Inc. BBB- 01/15/23 9.250 760,000 779,001
Tele-Communications, Inc. BBB- 02/15/23 8.750 500,000 496,094
Turner Broadcasting System, Inc. BBB- 07/01/13 8.375 750,000 772,970
BUILDING - 1.7%
Continental Homes Holding Corporation B+ 04/15/06 10.000 500,000 508,594
Ryland Group B+ 07/15/02 10.500 1,050,000 1,091,582
Standard Pacific Corporation BB 06/15/07 8.500 500,000 498,253
U.S. Home Corporation BB 06/15/03 9.750 1,000,000 1,040,000
</TABLE>
See Notes To Financial Statements
33
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
BUILDING MATERIALS - 0.3%
Johns Manville Corporation BB- 12/15/04 10.875 $ 500,000 $ 557,500
CHEMICAL - 1.7%
Borden Chemicals and Plastics, L.P. BB+ 05/01/05 9.500 500,000 525,000
duPont, E.I. de Nemours & Co. AA- 01/15/22 8.250 1,000,000 1,039,930
Eastman Chemical Company BBB+ 01/15/24 7.250 1,000,000 950,626
Union Carbide Chemicals & Plastics Co. BBB 04/01/23 7.875 600,000 608,626
COMPUTER & PERIPHERALS - 1.3%
Digital Equipment Corporation BB+ 11/01/12 8.625 1,200,000 1,236,766
International Business Machines Corp. A 11/01/19 8.375 1,000,000 1,103,503
DIVERSIFIED - 0.7%
Tenneco, Inc. BBB- 11/15/12 9.200 500,000 580,692
Textron, Inc. A- 07/01/22 8.750 581,000 618,337
ELECTRIC & GAS UTILITIES - 11.1%
Alabama Power Company A+ 12/01/24 9.000 1,000,000 1,065,327
Cleveland Electric Illuminating Company BB+ 03/01/17 9.375 500,000 508,594
Dayton Power & Light Company AA- 01/15/26 8.150 1,000,000 1,033,531
Duke Energy Corporation A+ 03/01/22 8.625 500,000 524,990
Florida Power & Light Company AA- 01/01/13 7.875 1,000,000 1,020,441
FPL Group Capital, Inc. A+ 05/01/13 7.625 525,000 523,828
Georgia Power Company A+ 02/01/23 7.950 1,000,000 999,437
Hydro Quebec A+ 01/15/22 8.400 850,000 918,798
Illinois Power Co. BBB 02/15/23 8.000 1,000,000 984,231
Indianapolis Power & Light Co. AA- 02/01/24 7.050 1,000,000 938,552
Long Island Lighting Company BB+ 07/15/19 8.900 473,000 494,729
Midland Cogeneration Venture BB- 07/23/02 10.330 368,034 389,617
Monongahela Power A+ 06/01/22 8.500 1,500,000 1,553,212
New Orleans Public Service, Inc. BBB 03/01/23 8.000 600,000 601,884
Northern Illinois Gas Company AA 08/15/21 8.875 1,000,000 1,055,984
Philadelphia Electric Company BBB+ 09/01/22 8.250 1,000,000 1,011,087
Potomac Edison Company A+ 06/01/24 8.000 1,000,000 1,018,166
Potomac Electric Power Company A 06/01/21 9.000 1,000,000 1,076,291
Public Service Electric & Gas A- 09/01/24 7.000 1,000,000 914,688
</TABLE>
See Notes To Financial Statements
34
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
ELECTRIC & GAS UTILITIES - 11.1% (Continued)
Southern Cal Edison A+ 12/01/17 8.375 $ 655,000 $ 665,556
Southern California Gas Company AA- 10/01/21 8.750 1,000,000 1,056,612
Virginia Electric & Power Company A 10/01/24 8.625 1,000,000 1,072,656
West Penn Power Company A+ 08/01/24 8.125 1,000,000 1,017,270
ELECTRIC EQUIPMENT - 1.5%
Essex Group, Inc. BB- 05/01/03 10.000 1,000,000 1,040,000
Philips Electronics N.V. BBB+ 08/15/13 7.250 1,000,000 969,913
Westinghouse Electric Corp. BB 08/01/12 8.625 750,000 770,860
ELECTRONICS - 0.6%
ADT Operations, Inc. BB+ 08/01/03 9.250 500,000 535,000
Rogers Communications, Inc. BB- 04/15/04 10.875 500,000 523,750
ENVIRONMENTAL - 0.6%
Laidlaw, Inc. BBB+ 05/15/23 8.250 1,000,000 1,046,090
FINANCIAL SERVICES - 3.9%
Auburn Hills Trust A 05/01/20 12.000 400,000 587,500
CRA Finance USA, Ltd. AA- 12/01/13 7.125 500,000 489,836
Dean Witter Discover & Company A+ 10/15/13 6.750 1,250,000 1,173,607
Dow Capital BV A 05/15/22 8.700 1,000,000 1,091,200
Fairfax Financial Holdings BBB+ 10/01/15 8.250 1,500,000 1,556,250
Fletcher Challenge Capital Canada, Inc. BBB 06/20/16 8.250 1,000,000 1,056,796
SunAmerica, Inc. A 04/28/23 8.125 1,250,000 1,282,502
FOOD PROCESSING - 1.4%
Chiquita Brands Int'l, Inc. B+ 01/15/04 9.625 1,000,000 1,047,500
ConAgra, Inc. BBB 03/01/21 9.750 500,000 614,399
Nabisco, Inc. BBB 06/15/15 7.550 1,000,000 981,730
FOREIGN GOVERNMENT - 2.9%
Province of Newfoundland BBB+ 10/22/22 8.650 1,000,000 1,093,266
Province of Nova Scotia A- 07/27/13 7.250 1,000,000 976,075
Province of Quebec A+ 12/01/26 8.625 1,000,000 1,113,807
Province of Saskatchewan A- 02/01/13 8.000 1,000,000 1,047,503
Republic of Finland AA 04/01/28 9.625 1,000,000 1,061,012
</TABLE>
See Notes To Financial Statements
35
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
GROCERY - 0.3%
Safeway, Inc. BBB- 03/15/07 9.875 $ 450,000 $ 524,130
HOTEL / GAMING - 3.7%
Boyd Gaming Corporation BB 10/01/03 9.250 500,000 496,250
California Hotel Finance Corp. BB- 12/01/02 11.000 400,000 419,000
Circus Circus Enterprises BBB- 07/15/13 7.625 450,000 434,250
Empress River Casino Finance Corp. BB 04/01/02 10.750 500,000 518,528
Grand Casinos, Inc. BB 12/01/03 10.125 1,000,000 1,045,000
Host Marriott Travel Plaza BB- 05/15/05 9.500 1,000,000 1,055,000
ITT Corporation BBB 11/15/15 7.375 1,000,000 920,938
Prime Hospitality Corp. BB 01/15/06 9.250 1,000,000 1,022,188
Showboat, Inc. BB- 05/01/08 9.250 400,000 412,000
Station Casinos B+ 06/01/03 9.625 500,000 505,000
HOUSEHOLD PRODUCTS - 0.1%
Owens Illinois, Inc. BB- 08/15/04 9.750 250,000 263,125
INSURANCE - 6.6%
Aetna Life & Casualty Company A- 01/15/17 8.000 1,500,000 1,472,114
CIGNA Corporation A- 03/01/23 7.650 500,000 493,622
CNA Financial Corporation A- 11/15/23 7.250 1,000,000 924,063
Continental Corporation BBB- 08/15/12 8.375 600,000 644,294
Kaufman & Broad Home Corp. B+ 05/01/03 9.375 1,000,000 1,025,000
Leucadia National Corporation BBB+ 08/15/13 7.750 910,000 878,150
MBIA, Inc. AA 10/01/22 8.200 2,000,000 2,090,595
Metropolitan Life Insurance Co.* A+ 11/01/23 7.450 550,000 507,240
New York Life Insurance Company AA- 12/15/23 7.500 1,000,000 981,580
Penncorp Financial Group, Inc. BB+ 12/15/03 9.250 500,000 520,780
Reliance Group Holdings, Inc. BB+ 11/15/00 9.000 1,000,000 1,040,000
Torchmark Corporation A 03/01/17 8.625 1,000,000 1,024,363
Vesta Insurance Group BBB+ 07/15/25 8.750 500,000 545,821
MEDICAL SERVICES - 1.5%
Abbey Healthcare Group, Inc. BB+ 11/01/02 9.500 500,000 527,085
Beverly Enterprises Inc. B+ 02/15/06 9.000 500,000 512,500
Columbia/HCA Healthcare Corporation A- 12/15/14 9.000 1,000,000 1,161,993
HEALTHSOUTH Rehabilitation BB- 04/01/01 9.500 500,000 530,000
</TABLE>
See Notes To Financial Statements
36
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
MEDICAL SUPPLIES - 0.4%
Cardinal Health, Inc. A- 02/15/04 6.500 $ 700,000 $ 682,364
METALS & MINING - 1.4%
Alcan Aluminum Ltd. A- 01/15/22 8.875 1,000,000 1,067,056
Inco Ltd. BBB- 06/15/22 9.600 500,000 555,727
Placer Dome, Inc. BBB 06/15/15 7.750 1,000,000 962,709
NATURAL GAS - 1.2%
AmeriGas Partners, L.P. BB+ 04/15/07 10.125 300,000 324,969
Consolidated Natural Gas Company AA- 12/01/11 8.625 311,000 323,403
Ferrellgas Partners, L.P. B+ 06/15/06 9.375 500,000 500,000
Seagull Energy BB- 08/01/05 8.625 1,000,000 1,020,000
NEWSPAPER - 0.6%
Hollinger International, Inc. BB- 02/01/06 9.250 500,000 515,000
Hollinger International, Inc. BB- 03/15/07 9.250 500,000 506,407
OILFIELD SERVICES - 1.2%
Dawson Production Services, Inc. B+ 02/01/07 9.375 750,000 765,000
Husky Oil, Ltd. BBB 11/15/16 7.550 1,000,000 983,000
J. Ray McDermott, S.A. BB- 07/15/06 9.375 500,000 512,500
PACKAGING & CONTAINERS - 1.4%
Container Corp. of America B+ 04/01/03 9.750 400,000 416,000
Crown Cork & Seal Company, Inc. BBB+ 04/15/23 8.000 1,500,000 1,493,638
Stone Container Corporation B 02/01/01 9.875 750,000 750,000
PAPER & FOREST PRODUCTS - 2.4%
Bowater, Inc. BBB 10/15/12 9.500 700,000 818,053
Champion International Corporation BBB 09/01/23 7.625 1,500,000 1,439,294
Georgia-Pacific Corporation BBB- 07/01/22 9.125 1,000,000 1,056,912
Sweetheart Corporation, Inc. B+ 09/01/00 9.625 1,000,000 1,015,000
PETROLEUM - 5.6%
ANR Pipeline Company BBB 11/01/21 9.625 1,000,000 1,210,916
Clark Oil & Refining Corporation BB 09/15/04 9.500 650,000 667,875
Clark USA, Inc. B+ 12/01/05 10.875 500,000 530,313
</TABLE>
See Notes To Financial Statements
37
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
PETROLEUM - 5.6% (Continued)
Diamond Shamrock R & M, Inc. BBB 04/01/23 8.000 $ 600,000 $ 603,016
Louisiana Land & Exploration Co. BBB 04/15/13 7.625 1,000,000 1,015,567
Maxus Energy Corporation BBB- 11/01/03 9.375 750,000 796,875
Maxus Energy Corporation BBB- 02/15/03 9.500 1,000,000 1,047,644
NOVA Gas Transmission A- 04/01/23 7.875 600,000 610,380
OXY USA, Inc. BBB 04/15/11 7.000 1,000,000 944,906
Phillips Petroleum Company A- 01/01/23 8.490 1,000,000 1,047,324
USX Corporation BBB- 02/15/12 9.375 750,000 867,308
Vintage Petroleum, Inc. B+ 12/15/05 9.000 1,000,000 1,042,560
PUBLISHING - 1.0%
K-III Communications Corporation BB- 06/01/04 10.250 750,000 810,000
News America Holdings BBB 08/10/18 8.250 1,000,000 1,009,063
RAILROAD - 1.1%
Kansas City Southern Industries, Inc. BBB- 07/01/22 8.800 500,000 517,304
Union Pacific Corporation BBB 05/01/25 8.350 1,500,000 1,546,913
REAL ESTATE INVESTMENT TRUST - 0.4%
Taubman Realty Group Ltd. BBB 10/01/03 7.000 750,000 738,235
RECREATION - 1.1%
Brunswick Corporation BBB+ 09/01/23 7.375 975,000 944,295
Time Warner, Inc. BBB- 01/15/13 9.125 1,000,000 1,107,500
RESTAURANT - 0.7%
Darden Restaurants, Inc. BBB 02/01/16 7.125 1,500,000 1,357,500
RETAIL STORE - 3.8%
Best Buy, Inc. B- 10/01/00 8.625 1,000,000 960,000
Dayton Hudson Corporation BBB+ 12/01/22 8.500 1,500,000 1,521,095
Genesco, Inc. B+ 02/01/03 10.375 425,000 431,901
Kmart Corporation B+ 10/01/12 7.750 1,000,000 912,838
May Department Stores A 07/15/26 8.300 1,000,000 1,036,563
Rite-Aid Corporation BBB+ 08/15/13 6.875 1,000,000 910,359
Sears, Roebuck & Company A- 11/01/11 9.375 1,000,000 1,184,037
</TABLE>
See Notes To Financial Statements
38
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- -------------------------------------------- ------ -------- ------ --------- ------------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 2.8%
Bear Stearns Companies, Inc. A 01/15/04 6.625 $1,000,000 $ 977,501
Goldman Sachs Group A+ 03/01/13 8.000 1,000,000 1,026,505
Lehman Brothers, Inc. A 05/15/05 11.625 1,023,000 1,272,894
Morgan Stanley Group, Inc. A+ 10/01/13 7.000 1,000,000 959,139
Paine Webber Group, Inc. BBB+ 02/15/14 7.625 1,000,000 991,563
STEEL - 1.1%
AK Steel Corporation BB- 12/15/06 9.125 1,000,000 1,023,751
Jorgensen, Earle M. Company B 03/01/00 10.750 500,000 495,000
Wheeling-Pittsburgh Corporation BB- 11/15/03 9.375 500,000 480,000
TELECOMMUNICATIONS SERVICE - 4.0%
AT&T Corporation AA- 01/15/22 8.125 750,000 767,579
GTE Corporation A 11/01/21 8.750 1,000,000 1,130,713
NYNEX Corporation A+ 12/15/11 7.375 500,000 492,664
Paging Network, Inc. B 02/01/06 8.875 1,000,000 906,563
Southern Bell Telephone & Telegraph Co. AAA 03/15/13 7.625 3,000,000 2,982,191
Southwestern Bell Telephone Company AA 05/01/12 7.375 1,000,000 984,915
TEXTILES - 1.3%
Dominion Textile, Inc. BB 04/01/06 9.250 500,000 525,000
Fieldcrest Cannon, Inc. B+ 06/15/04 11.250 1,000,000 1,030,000
WestPoint Stevens, Inc. BB- 12/15/01 8.750 750,000 780,000
TOBACCO - 1.0%
Philip Morris Companies, Inc. A 01/15/17 8.375 1,000,000 997,707
RJR Nabisco, Inc. BBB- 04/15/04 8.750 775,000 789,532
U.S. GOVERNMENT - 5.1%
U.S. Treasury 08/15/26 6.750 2,000,000 1,978,125
U.S. Treasury 10/15/06 6.500 3,000,000 2,987,813
U.S. Treasury 11/15/12 10.375 3,500,000 4,442,266
------------
TOTAL FIXED INCOME SECURITIES - 97.5%
(Cost $174,611,424) $179,016,869
============
</TABLE>
* Security exempt from registration under Rule 144A of the
Securities Act of 1933
See Notes To Financial Statements
39
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
------ ---- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities . . . . . . . . $ 47,179,413 $ 4,104,315 $ 87,859,834 $ 1,123,099 $ 179,016,869
Cash . . . . . . . . . . . . . . . . . . 670,071 14,786 554,978 9,326 866,930
Receivables
Dividends and interest . . . . . . . . . 16,623 75,364 792,376 16,760 3,859,735
Securities sold . . . . . . . . . . . . 101,342 0 67,561 0 0
Prepaid expenses . . . . . . . . . . . . 1,835 763 3,034 441 5,787
------------ ----------- ------------ ----------- -------------
Total assets. . . . . . . . . . . . . . . 47,969,284 4,195,228 89,277,783 1,149,626 183,749,321
LIABILITIES
Payable to affiliated entities
Investment advisory fees . . . . . . . . 27,226 1,424 51,380 384 76,210
Distribution fees . . . . . . . . . . . 1,639 0 3,080 0 6,340
Accounts payable and accrued expenses . . 15,537 1,382 29,799 58 41,497
Securities purchased . . . . . . . . . . 235,531 0 158,028 0 0
Distributions payable . . . . . . . . . . 0 4,156 1,980 610 12,757
------------ ----------- ------------ ----------- -------------
Total liabilities . . . . . . . . . . . . 279,933 6,962 244,267 1,052 136,804
------------ ----------- ------------ ----------- -------------
Net assets . . . . . . . . . . . . . . . $ 47,689,351 $ 4,188,266 $ 89,033,516 $ 1,148,574 $ 183,612,517
============ =========== ============ =========== =============
NET ASSETS
Paid-in capital . . . . . . . . . . . . . $ 33,393,214 $ 4,063,335 $ 65,591,767 $ 1,169,260 $ 180,044,728
Accumulated undistributed net investment
income (loss). . . . . . . . . . . . . . (116,454) 0 0 0 0
Accumulated undistributed net realized
gain (loss) on investments . . . . . . . 43,824 15,713 867,379 (22,660) (837,656)
Net unrealized appreciation in value of
investments. . . . . . . . . . . . . . . 14,368,767 109,218 22,574,370 1,974 4,405,445
------------ ----------- ------------ ----------- -------------
Net assets . . . . . . . . . . . . . . . $ 47,689,351 $ 4,188,266 $ 89,033,516 $ 1,148,574 $ 183,612,517
============ =========== ============ =========== =============
SHARES OUTSTANDING . . . . . . . . . . . . 3,029,340 406,480 6,000,674 113,481 18,047,072
============ =========== ============ =========== =============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE . . . . . . . $ 15.74 $ 10.30 $ 14.84 $ 10.12 $ 10.17
============ =========== ============ =========== =============
</TABLE>
See Notes To Financial Statements
40
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY LONG TERM RETIREMENT
GROWTH BOND BALANCED INCOME INCOME
------ ---- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . . $ 13,607 $ 154,529 $ 1,210,573 $ 44,880 $ 7,203,267
Dividends . . . . . . . . . . . . . . . . . 98,484 0 465,393 0 0
------------ ---------- ------------ --------- ------------
Total investment income . . . . . . . . . . 112,091 154,529 1,675,966 44,880 7,203,267
EXPENSES
Paid to affiliates:
Investment advisory fees . . . . . . . . . 147,121 8,402 284,389 2,376 439,340
Administration fees . . . . . . . . . . . 0 0 0 0 0
Distribution fees . . . . . . . . . . . . 52,543 0 101,567 0 219,670
Transfer and dividend disbursing
agent fees . . . . . . . . . . . . . . . 0 0 0 0 0
Paid to others:
Custodial fees . . . . . . . . . . . . . . 13,989 1,372 14,914 1,099 5,296
Directors fees and expenses . . . . . . . 625 63 2,862 0 2,631
Professional fees . . . . . . . . . . . . 3,748 380 7,257 0 15,783
Shareholder reporting costs . . . . . . . 5,448 579 10,714 36 22,798
Registration and filing fees . . . . . . . 2,953 700 4,436 691 7,333
Other operating expenses . . . . . . . . . 2,118 237 4,177 130 9,456
------------ ---------- ------------ --------- ------------
Total expenses . . . . . . . . . . . . . . . 228,545 11,733 430,316 4,332 722,307
------------ ---------- ------------ --------- ------------
NET INVESTMENT INCOME (LOSS) . . . . . . . . . (116,454) 142,796 1,245,650 40,548 6,480,960
REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from securities sold . . . . . . . 4,569,170 857,784 4,087,697 805,433 11,905,719
Cost of securities sold . . . . . . . . . . (4,397,561) (841,001) (3,220,318) (821,437) (11,772,422)
------------ ---------- ------------ --------- ------------
Net realized gain (loss) on investments . . 171,609 16,783 867,379 (16,004) 133,297
UNREALIZED GAIN (LOSS) ON INVESTMENTS
Appreciation, Beginning of year . . . . . . 11,269,387 151,071 16,670,110 7,127 4,830,140
Appreciation, End of period . . . . . . . . 14,368,767 109,218 22,574,370 1,974 4,405,445
------------ ---------- ------------ --------- ------------
Net unrealized gain (loss) on investments . 3,099,380 (41,853) 5,904,260 (5,153) (424,695)
------------ ---------- ------------ --------- ------------
NET GAIN (LOSS) ON INVESTMENTS . . . . . . . . 3,270,989 (25,070) 6,771,639 (21,157) (291,398)
------------ ---------- ------------ --------- ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . $ 3,154,535 $ 117,726 $ 8,017,289 $ 19,391 $ 6,189,562
============ ========== ============ ========= ============
</TABLE>
See Notes To Financial Statements
41
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH BOND
--------------------------- --------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1997 1996 1997 1996
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . $ (116,454) $ (162,689) $ 142,796 $ 293,150
Net realized gain (loss) on investments . . . . . . . 171,609 128,865 16,783 14,890
Net unrealized gain (loss) on investments . . . . . . 3,099,380 5,138,241 (41,853) (189,341)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations. 3,154,535 5,104,417 117,726 118,699
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . 0 0 (142,796) (293,150)
Net realized gain on investments . . . . . . . . . . 0 0 0 0
------------ ------------ ----------- -----------
Total distributions to shareholders . . . . . . . . . 0 0 (142,796) (293,150)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . 8,075,467 10,814,068 545,076 747,478
Reinvestment of distributions . . . . . . . . . . . . 0 0 116,953 246,917
Cost of shares reacquired . . . . . . . . . . . . . . (2,307,544) (2,776,738) (879,179) (916,571)
------------ ------------ ----------- -----------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . 5,767,923 8,037,330 (217,150) 77,824
------------ ------------ ----------- -----------
Net increase (decrease) in net assets . . . . . . . . 8,922,458 13,141,747 (242,220) (96,627)
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 38,766,893 25,625,146 4,430,486 4,527,113
------------ ------------ ----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . $ 47,689,351 $ 38,766,893 $ 4,188,266 $ 4,430,486
============ ============ =========== ===========
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . . . 551,771 792,133 53,467 71,788
Shares issued from reinvestment of distributions . . 0 0 11,411 23,856
Reacquired . . . . . . . . . . . . . . . . . . . . . (156,355) (202,707) (85,591) (88,198)
------------ ------------ ----------- -----------
Net increase (decrease) in shares outstanding . . . 395,416 589,426 (20,713) 7,446
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 2,633,924 2,044,498 427,193 419,747
------------ ------------ ----------- -----------
End of period . . . . . . . . . . . . . . . . . . . 3,029,340 2,633,924 406,480 427,193
============ ============ =========== ===========
</TABLE>
See Notes To Financial Statements
42
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LONG TERM
BALANCED INCOME
--------------------------- -------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1997 1996 1997 1996
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . $ 1,245,650 $ 2,108,825 $ 40,548 $ 93,827
Net realized gain (loss) on investments . . . . . . . 867,379 1,422,047 (16,004) (897)
Net unrealized gain (loss) on investments . . . . . . 5,904,260 5,684,549 (5,153) (65,828)
------------ ------------ ----------- -----------
Net increase in net assets resulting from operations . 8,017,289 9,215,421 19,391 27,102
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . (1,245,650) (2,108,825) (40,548) (93,827)
Net realized gain on investments . . . . . . . . . . . 0 (1,422,047) 0 0
------------ ------------ ----------- -----------
Total distributions to shareholders . . . . . . . . . (1,245,650) (3,530,872) (40,548) (93,827)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . . 9,902,291 14,712,818 1,602 43,803
Reinvestment of distributions . . . . . . . . . . . . 1,232,833 3,500,989 35,965 86,013
Cost of shares reacquired . . . . . . . . . . . . . . (4,074,920) (7,995,453) (262,632) (118,662)
------------ ------------ ----------- -----------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . . 7,060,204 10,218,354 (225,065) 11,154
------------ ------------ ----------- -----------
Net increase (decrease) in net assets . . . . . . . . 13,831,843 15,902,903 (246,222) (55,571)
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 75,201,673 59,298,770 1,394,796 1,450,367
------------ ------------ ----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . $ 89,033,516 $ 75,201,673 $ 1,148,574 $ 1,394,796
============ ============ =========== ===========
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 705,140 1,132,445 159 4,368
Shares issued from reinvestment of distributions . . . 87,438 262,475 3,564 8,433
Reacquired . . . . . . . . . . . . . . . . . . . . . . (289,877) (615,458) (25,992) (11,587)
------------ ------------ ----------- -----------
Net increase (decrease) in shares outstanding . . . . 502,701 779,462 (22,269) 1,214
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 5,497,973 4,718,511 135,750 134,536
------------ ------------ ----------- -----------
End of period . . . . . . . . . . . . . . . . . . . 6,000,674 5,497,973 113,481 135,750
============ ============ =========== ===========
</TABLE>
See Notes To Financial Statements
43
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT
INCOME
-------------------------------
(Unaudited)
Six months Year
ended ended
June 30, Dec. 31,
1997 1996
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . $ 6,480,960 $ 11,712,302
Net realized gain (loss) on investments . . . . . . . 133,297 (456,673)
Net unrealized gain (loss) on investments . . . . . . (424,695) (3,666,825)
------------- -------------
Net increase in net assets resulting from operations . 6,189,562 7,588,804
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . (6,480,960) (11,712,302)
Net realized gain on investments . . . . . . . . . . . 0 0
------------- -------------
Total distributions to shareholders . . . . . . . . . (6,480,960) (11,712,302)
Share Transactions:
Net proceeds from sale of shares . . . . . . . . . . . 17,301,985 39,730,156
Reinvestment of distributions . . . . . . . . . . . . 6,395,241 11,592,633
Cost of shares reacquired . . . . . . . . . . . . . . (10,592,502) (15,699,328)
------------- -------------
Net increase (decrease) derived from share
transactions . . . . . . . . . . . . . . . . . . . . 13,104,724 35,623,461
------------- -------------
Net increase (decrease) in net assets . . . . . . . . 12,813,326 31,499,963
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 170,799,191 139,299,228
------------- -------------
End of period . . . . . . . . . . . . . . . . . . . . $ 183,612,517 $ 170,799,191
============= =============
NUMBER OF SHARES
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 1,714,834 3,902,770
Shares issued from reinvestment of distributions . . . 634,125 1,150,356
Reacquired . . . . . . . . . . . . . . . . . . . . . . (1,049,284) (1,557,136)
------------- -------------
Net increase (decrease) in shares outstanding . . . . 1,299,675 3,495,990
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 16,747,398 13,251,408
------------- -------------
End of period . . . . . . . . . . . . . . . . . . . 18,047,073 16,747,398
============= =============
</TABLE>
See Notes To Financial Statements
44
<PAGE>
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 generally 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
intends to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision is provided.
45
<PAGE>
Note 2. ACCOUNTING POLICIES (Continued)
Dividends
Income dividends in the Bond, Balanced, Long Term Income and Retirement
Income Funds are declared daily, except on Saturdays, Sundays and holidays
and are paid monthly on the last business day of the month. Income dividends
in the Equity Growth Fund, if any, are declared annually and paid on the last
business day of the year. Capital gain dividends, if any, are declared
annually on the last business day of the year and are normally paid within
45 days.
Other
Security transactions are accounted for on the trade date, the date the
order to buy or sell is executed. Interest income is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date. Premium and
discount on fixed income securities are amortized using the effective interest
method. Realized gains and losses on security transactions are determined on
the first-in, first-out method for book and tax purposes. 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, 1997 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. T. Rowe
Price Associates, Inc. (TRPA) serves as sub-advisor for that portion of the
portfolio of assets of the Equity Growth Fund and Balanced Fund which are
determined by MANAGEMENT to be invested in common stocks. 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 Administrator, 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. For its services, TRPA is paid a fee by
MANAGEMENT equal on an annual basis to .20% of the average daily net assets
of the Equity Growth Fund and that portion of the Balanced Fund invested in
common stocks. 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.
46
<PAGE>
Note 3. TRANSACTIONS WITH AFFILIATES (Continued)
The COMPANY was charged investment advisory fees of $881,628 by MANAGEMENT
for the six months ended June 30, 1997. The COMPANY was charged distribution
fees of $373,780 by SERVICES for the six months ended June 30, 1997. SERVICES
paid or accrued to brokerage firms a total of $7,170 for distributing COMPANY
shares for the six months ended June 30, 1997. At June 30, 1997 the employee
retirement plans sponsored by SERVICES owned 57,151 shares (1.9%) of the
Equity Growth Fund and 6,991 shares (0.12%) 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 $2,500 annual retainer and an additional
$250 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, 1997 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
------ ---- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
Purchases $10,083,610 $656,119 $11,599,759 $588,994 $28,276,109
Sales 4,569,170 857,784 4,087,697 805,433 11,905,719
</TABLE>
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 $104,895 $992,188 $464,619 $8,479,219
Sales None 403,084 534,609 68,611 2,933,906
</TABLE>
Gross unrealized appreciation and depreciation of investments for book
and tax purposes as of June 30, 1997 were as follows:
<TABLE>
<CAPTION>
Equity Long Term Retirement
Growth Bond Balanced Income Income
------ ---- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Appreciation $15,861,086 $137,150 $23,554,990 $15,756 $6,363,768
Depreciation 1,492,319 27,932 980,620 13,782 1,958,323
</TABLE>
47
<PAGE>
Note 5. CASH
As of June 30, 1997, substantially all cash was invested in the Monitor
Money Market Fund, bearing interest at a variable rate (approximately 5.2%).
Note 6. CAPITAL LOSS CARRYOVERS
At December 31, 1996, 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 $127,785 $1,070 $5,759 $204,500
December 31, 2003 0 0 0 309,780
December 31, 2004 0 0 897 456,673
-------- ------ ------ --------
Total $127,785 $1,070 $6,656 $970,953
======== ====== ====== ========
</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.
Note 8. SUBSEQUENT EVENT
On August 15, 1997, a majority of the shareholders of the Long Term
Income Fund approved the liquidation and dissolution of the Fund pursuant
to the provisions of the Plan of Liquidation and Termination as authorized
and directed by the Board of Directors.
48
<PAGE>
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 SEMI-ANNUAL REPORT
John C. Shoemaker JUNE 30, 1997
Frank R. Zimmerman
