<PAGE>
SEMI-ANNUAL REPORT
June 30, 1998
ADVANCE CAPITAL I, Inc.
An investment company with four 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........................8
Bond Fund................................13
Balanced Fund............................15
Retirement Income Fund...................28
Statement of Assets and Liabilities...........36
Statement of Operations.......................37
Statement of Changes in Net Assets............38
Notes to Financial Statements.................40
</TABLE>
<PAGE>
Dear Shareholder:
The performance of the US economy is moving into what could
well be called miraculous territory. As the expansion continues
into a record number of unbroken years, both inflation and
unemployment remain at postwar record lows. Even in the face of
a recession affecting one of our largest trading partners, the
domestic success story continues.
In the financial markets the story is much the same. Viewed
broadly, the continued theme of strong corporate profits, low
inflation and record inflows into stock mutual funds have fueled
above average stock returns again during the first half of 1998.
Through midyear the S&P 500 Index increased more than 17 percent,
although the second quarter was "only" a more normal three percent.
The Nasdaq Composite has done slightly better than 20 percent
through midyear and the bond market has prospered with returns
generally above that provided by yield alone. For the first half
of the year the stocks of larger capitalized companies and the
biggest high tech companies led the market's advance. Smaller
and mid-sized companies' stock performance was much lower during
the first half of the year.
Through June 30th, the Advance Capital I, Inc. Equity Growth
Fund increased 11.3 percent, better than the average of the mid-cap
funds followed by Lipper Analytical Services, Inc. The Balanced
Fund returned 8.8 percent for the half-year, ranking it well above
the middle of balanced funds followed by Lipper. The Bond Fund
and Retirement Income Fund, returning 3.6 percent and 4.2 percent,
respectively, for the first half of the year, each continued long
term performance better than their respective intermediate term
bond and BBB rated bond brethren. Over the three years ending in
June the Advance Capital I, Inc. funds have continued to perform
consistent with or better than funds with comparable investment
objectives.
"Prosperity abounds, but will it last?" is the big question
nagging investors. On the domestic front, dangerously low
unemployment may be tipping the balance of power from employer
to employee. Eight years ago corporate downsizing and a stagnant
economy kept wages and benefits in check. Those with a job were
grateful and those without were hard pressed to find a viable
career opportunity. Today, jobs are plentiful and qualified
workers are hard to find. This shift has forced employers to
offer higher wages and incentive packages to retain qualified
personnel, especially in computer programming and finance. Even
at the factory level General Motors is now something of a national
litmus test for this balance of power. The key issue, of course,
is not pay but the relationship between pay and productivity. If
productivity does not keep ahead of wage increases, inflation is
simply the mathematical result. If inflation leaps to higher
levels, financial assets will suffer the consequences. We all
learned this lesson well over 20 years ago.
On foreign soil, the economic and political problems in Asia
will certainly slow our domestic growth. Should they become
significantly more severe than today, investment returns will
certainly suffer. In less than a year, the economies of Thailand,
Indonesia, Korea and Malaysia toppled from emerging successes to
near insolvency and civil unrest. It is not often that economic
conditions cause violent protests and the forced resignation of
a multi-decade national leader. This experience in Indonesia is
the most dramatic evidence of the magnitude of the economic
problems facing the Far East. The world is looking to Japan and
China to help save the ailing region.
2
<PAGE>
Japan's economy, however, has stagnated for the past decade amid
loose controls and poor national fiscal policy. The resolution
of Japan's problems are still in the "to be determined" category
and are being debated there today. If Japan's economic slide
continues, it's ability to help revitalize the region is doubtful
at best. The Chinese Government is resisting the pressure to
devalue its own currency in an attempt to ease the financial
burden on its trading partners, the smaller Asian countries, at
the expense of its domestic investors.
It appears that an economic tidal wave is building in the
East. Although these foreign troubles are mounting, exports to
the smaller Asian countries account for only a tiny fraction of
the US economy. Further, the impending IMF stimulus package
(with its mandated controls) should help stabilize these economies.
The real Achilles heel is Japan. If Japan falls into a deep or
more protracted recession, the news for the rest of the world
will not be good. Major problems in the second largest economy
in the world are not in the same category as a devaluation of
the Thai baht. Concerted ongoing efforts by the United States
and the IMF are targeted to provide the support and encourage
(and demand) the reforms necessary to turn the tide. The world
economy depends heavily on Japan and all eyes and efforts are
focused there.
Over the next eighteen months the strength of the US economy
will be tested by both domestic wage pressure and foreign economic
turmoil. There is little doubt that growth will slow, the question
is by how much. That answer depends on the delicate balance
between the enormous strength of the US economy and the opposing
pressures, both domestic and foreign. If foreign problems escalate
and the US economy begins to look like it may suffer, stocks will
surely decline. A continuation of the status quo should see
continued health in both the stock and bond markets.
We believe the best investment approach, particularly during
periods of such uncertainty, is to remain focused on the original
investment objectives of the portfolios. Past studies have proven,
many times, that attempts to "time" the market simply do not work.
The successes of the Advance Capital I, Inc. funds to date have
come from sticking to the objectives, remaining fully invested
and staying focused on a careful selection of securities and
equally careful management of costs. Our specific view of the
markets is that the success will continue. Certainly the risks
are clear and the entire financial world is watching them
carefully.
Sincerely,
/s/ Robert J. Cappelli /s/ John C. Shoemaker
Robert J. Cappelli John C. Shoemaker
August 7, 1998
3
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH
-----------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of year. . . . $17.25 $14.72 $12.53 $ 9.08 $ 9.46 $ 9.94
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income (loss). . . . . . . (0.05) (0.09) (0.07) (0.03) (0.03) 0.12
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . 1.99 2.69 2.26 3.48 (0.35) 0.07
--------- --------- --------- --------- --------- ---------
Total from investment operations. . . . . 1.94 2.60 2.19 3.45 (0.38) 0.19
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income. . . . . . . . . . 0.00 0.00 0.00 0.00 0.00 (0.12)
Net realized gain on investments. . . . . 0.00 (0.07) 0.00 0.00 0.00 (0.55)
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . 0.00 (0.07) 0.00 0.00 0.00 (0.67)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period. . . . . . . $19.19 $17.25 $14.72 $12.53 $ 9.08 $ 9.46
========= ========= ========= ========= ========= =========
TOTAL RETURN. . . . . . . . . . . . . . . . 11.25% 17.68% 17.48% 38.00% -4.02% 2.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands). $63,709 $54,332 $38,767 $25,625 $12,634 $7,577
Ratio of expenses to average net assets . 1.03% 1.07% 1.09% 1.12% 1.21% 1.16%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . -0.59% -0.58% -0.50% -0.29% -0.30% 1.27%
Portfolio turnover rate . . . . . . . . . 15.97% 20.53% 24.75% 13.86% 18.05% 135.55%
Average commission rate per share*. . . . $0.0233 $0.0259 $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, -----------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of year. . . . $10.52 $10.37 $10.79 $ 9.61 $10.82 $10.51
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income . . . . . . . . . . 0.34 0.69 0.70 0.70 0.71 0.72
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . 0.03 0.24 (0.42) 1.18 (1.21) 0.45
--------- --------- --------- --------- --------- ---------
Total from investment operations. . . . . 0.37 0.93 0.28 1.88 (0.50) 1.17
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.34) (0.69) (0.70) (0.70) (0.71) (0.72)
Net realized gain on investments. . . . . 0.00 (0.09) 0.00 0.00 0.00 (0.14)
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.34) (0.78) (0.70) (0.70) (0.71) (0.86)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period. . . . . . . $10.55 $10.52 $10.37 $10.79 $ 9.61 $10.82
========= ========= ========= ========= ========= =========
TOTAL RETURN. . . . . . . . . . . . . . . . 3.57% 9.41% 2.81% 20.15% -4.64% 11.48%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands). $3,854 $4,203 $4,430 $4,527 $3,999 $4,741
Ratio of expenses to average net assets . 0.53% 0.54% 0.55% 0.55% 0.60% 0.61%
Ratio of net investment income to average
net assets. . . . . . . . . . . . . . . 6.43% 6.65% 6.71% 6.80% 7.06% 6.57%
Portfolio turnover rate. . . . . . . . . 10.33% 21.95% 19.77% 6.69% 21.92% 35.99%
</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, -----------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of year. . . . $15.69 $13.68 $12.57 $ 9.97 $10.58 $10.36
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income . . . . . . . . . . 0.23 0.45 0.41 0.35 0.32 0.29
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . 1.15 2.32 1.37 2.75 (0.61) 0.22
--------- --------- --------- --------- --------- ---------
Total from investment operations. . . . . 1.38 2.77 1.78 3.10 (0.29) 0.51
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.23) (0.45) (0.41) (0.35) (0.32) (0.29)
Net realized gain on investments. . . . . 0.00 (0.31) (0.26) (0.15) 0.00 0.00
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.23) (0.76) (0.67) (0.50) (0.32) (0.29)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period. . . . . . . $16.84 $15.69 $13.68 $12.57 $ 9.97 $10.58
========= ========= ========= ========= ========= =========
TOTAL RETURN. . . . . . . . . . . . . . . . 8.83% 20.50% 14.48% 31.53% -2.72% 4.97%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands). $116,594 $99,421 $75,202 $59,299 $44,221 $46,690
Ratio of expenses to average net assets . 1.02% 1.04% 1.06% 1.07% 1.10% 1.08%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . 2.79% 3.02% 3.17% 3.11% 3.18% 2.77%
Portfolio turnover rate . . . . . . . . . 8.62% 10.13% 12.79% 22.72% 34.97% 101.29%
Average commission rate per share*. . . . $0.0243 $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>
RETIREMENT INCOME
-----------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -----------------------------------------------
1998 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of year. . . . $10.65 $10.20 $10.51 $ 9.22 $10.54 $10.00
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income . . . . . . . . . . 0.37 0.74 0.75 0.76 0.76 0.82
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . 0.07 0.45 (0.31) 1.29 (1.32) 0.61
--------- --------- --------- --------- --------- ---------
Total from investment operations. . . . . 0.44 1.19 0.44 2.05 (0.56) 1.43
--------- --------- --------- --------- --------- ---------
Less distributions
Net investment income . . . . . . . . . . (0.37) (0.74) (0.75) (0.76) (0.76) (0.82)
Net realized gain on investments. . . . . 0.00 0.00 0.00 0.00 0.00 (0.07)
--------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.37) (0.74) (0.75) (0.76) (0.76) (0.89)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period. . . . . . . $10.72 $10.65 $10.20 $10.51 $ 9.22 $10.54
========= ========= ========= ========= ========= =========
TOTAL RETURN. . . . . . . . . . . . . . . . 4.18% 12.20% 4.54% 22.96% -5.34% 13.92%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands). $212,982 $200,511 $170,799 $139,299 $84,162 $47,343
Ratio of expenses to average net assets . 0.80% 0.82% 0.82% 0.84% 0.88% 0.88%
Ratio of net investment income to average
net assets. . . . . . . . . . . . . . . 6.88% 7.21% 7.45% 7.64% 7.89% 7.41%
Portfolio turnover rate . . . . . . . . . 21.88% 16.60% 8.34% 15.63% 12.27% 37.59%
</TABLE>
See Notes To Financial Statements
7
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------------- ---------- --------------
<S> <C> <C>
ADVERTISING - 1.8%
Catalina Marketing Corporation* 2,600 $ 135,037
Interpublic Group of Companies, Inc. 4,200 254,888
Omnicom Group, Inc. 5,000 249,375
Outdoor Systems, Inc.* 18,225 510,300
AEROSPACE / DEFENSE - 0.6%
BE Aerospace, Inc.* 6,000 174,750
Gulfstream Aerospace Corporation* 4,500 209,250
AIR TRANSPORT - 1.2%
Air Express International Corp. 7,650 204,637
ASA Holdings, Inc. 5,500 272,938
Comair Holdings, Inc. 9,750 301,031
APPAREL - 1.1%
Jones Apparel Group, Inc.* 6,000 219,375
Nautica Enterprises, Inc.* 6,000 160,875
Quiksilver, Inc.* 8,000 159,500
Warnaco Group, Inc. 4,500 190,969
AUTO PARTS - 0.3%
SPX Corporation 2,700 173,813
BANK - 5.1%
Bank of New York Company, Inc. 5,100 309,506
City National Corporation 7,000 258,562
First American Corporation 7,400 356,125
Mercantile Bancorporation, Inc. 3,124 157,371
Northern Trust Corporation 4,600 350,750
Providian Financial Corporation 4,000 314,250
Silicon Valley Bancshares* 9,000 320,344
State Street Corporation 6,100 423,950
TCF Financial Corporation 6,500 191,750
U.S. Bancorp 7,500 322,969
Zions Bancorporation 4,000 212,500
BIOTECHNOLOGY - 1.3%
CliniChem Development Inc.* 125 719
Human Genome Sciences, Inc.* 4,200 149,887
Incyte Pharmaceuticals, Inc.* 5,000 170,625
Millennium Pharmaceuticals, Inc.* 10,000 141,250
Pioneer Hi-Bred International, Inc. 6,000 248,250
Protein Design Labs, Inc.* 4,000 96,375
BROADCASTING / CABLE TV - 3.9%
A.H. Belo Corporation 8,000 195,000
Chancellor Media Corporation* 6,000 297,937
Clear Channel Communications* 6,000 653,625
Cox Communications, Inc.* 6,000 290,625
Emmis Broadcasting Corporation* 4,000 191,250
Jacor Communications, Inc.* 5,000 295,000
TCA Cable TV, Inc. 3,500 210,000
Univision Communications, Inc.* 6,100 225,700
Westwood One, Inc.* 6,000 151,313
BUILDING MATERIALS - 0.3%
American Standard Companies, Inc.* 4,000 178,750
CHEMICAL - 2.2%
Ecolab, Inc. 8,000 248,000
Lilly Industries, Inc. 8,000 173,000
Raychem Corporation 5,000 147,812
Sherwin-Williams Company 6,500 215,313
Sigma-Aldrich Corporation 8,000 281,000
Valspar Corporation 7,800 309,075
COMPUTER & PERIPHERALS - 3.5%
Cable Design Technologies* 5,750 118,594
Cisco Systems, Inc.* 4,500 414,281
Comverse Technology, Inc.* 4,500 233,437
EMC Corporation* 8,600 385,388
Gateway 2000, Inc.* 5,000 253,125
Microchip Technology, Inc.* 4,425 115,603
SCI Systems, Inc.* 6,000 225,750
</TABLE>
See Notes To Financial Statements
8
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------------- ---------- --------------
<S> <C> <C>
COMPUTER & PERIPHERALS - 3.5% (Continued)
Sun Microsystems, Inc.* 8,500 $ 369,219
Xilinx, Inc.* 4,300 146,200
COMPUTER SOFTWARE & SERVICES - 12.0%
Adobe Systems, Inc. 4,000 169,750
Affiliated Computer Services, Inc.* 7,000 269,500
America Online, Inc.* 5,000 530,000
BMC Software, Inc.* 11,200 581,700
Cadence Design Systems, Inc.* 11,000 343,750
Cambridge Technology Partners, Inc.* 6,000 327,750
CBT Group PLC-ADR* 5,000 267,500
Citrix Systems, Inc.* 5,250 358,969
Cognizant Corporation 4,500 284,062
Compuware Corporation* 10,000 511,250
DST Systems, Inc.* 4,300 240,800
Electronic Arts, Inc.* 6,000 324,000
First Data Corporation 3,612 120,325
HBO & Company 16,000 564,000
Intuit, Inc.* 4,200 257,250
Network Associates, Inc.* 8,974 429,630
Oracle Corporation* 7,500 184,219
Parametric Technology Company* 7,000 189,875
Peoplesoft, Inc.* 8,000 376,000
Shared Medical Systems Corporation 3,500 257,031
Sterling Commerce, Inc.* 6,500 314,844
SunGard Data Systems, Inc.* 4,500 172,687
Symantec Corporation* 7,800 203,775
Synopsys, Inc.* 3,400 155,550
Visio Corporation* 5,600 267,400
DIVERSIFIED - 1.7%
Danaher Corporation 8,000 293,500
Equity Corporation International* 5,000 120,000
Service Corp. International 5,200 222,950
Thermo Electron Corporation* 4,000 137,250
Tyco International, Ltd. 5,294 333,522
DRUG - 2.3%
Agouron Pharmaceuticals, Inc.* 3,400 103,062
Amgen, Inc.* 3,300 215,738
BioChem Pharma, Inc.* 5,000 132,500
Biogen, Inc.* 4,400 215,600
Elan Corporation PLC-ADR* 3,700 237,956
Gilead Sciences, Inc.* 4,000 128,250
Guilford Pharmaceuticals, Inc.* 4,500 79,313
Isis Pharmaceuticals, Inc.* 5,500 75,281
Watson Pharmaceuticals, Inc.* 5,600 261,450
ELECTRIC & GAS UTILITIES - 0.6%
AES Corporation* 7,500 394,219
ELECTRICAL EQUIPMENT - 0.5%
Hubbell Inc.-Class B 4,500 187,313
Littlefuse, Inc.* 5,000 126,250
ELECTRONICS - 2.3%
Altera Corporation* 6,200 183,288
Harman International Industries 3,100 119,350
Molex, Inc. 7,421 173,466
Sanmina Corporation* 5,400 234,225
Symbol Technologies, Inc. 9,975 376,556
Teradyne, Inc.* 3,100 82,925
Waters Corporation* 4,800 282,900
ENVIRONMENTAL - 1.4%
Allied Waste Industries, Inc.* 8,500 204,000
Superior Services, Inc.* 7,000 210,437
USA Waste Services, Inc.* 7,812 385,718
U.S. Filter Corporation* 3,500 98,219
FINANCIAL SERVICES - 3.3%
Cendant Corporation* 10,000 208,750
Finova Group, Inc. 6,000 339,750
Franklin Resources, Inc. 9,300 489,412
ING Groep N.V.-ADR 1 43
Mutual Risk Management, Ltd. 11,632 423,841
Paychex, Inc. 6,750 274,641
SunAmerica, Inc. 6,400 368,000
</TABLE>
See Notes To Financial Statements
9
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------------- ---------- --------------
<S> <C> <C>
FOOD PROCESSING - 0.7%
International Multifoods Corporation 6,000 $ 165,000
Tootsie Roll Industries, Inc. 3,775 289,731
FOREIGN TELECOMMUNICATIONS - 1.5%
Ericsson (LM) Telephone-ADR 8,000 229,000
Reuters Group PLC-ADR 2,166 148,371
Vodafone Group PLC-ADR 4,500 567,281
GROCERY - 0.8%
Richfood Holdings, Inc. 6,500 134,875
Safeway, Inc.* 8,800 358,050
HOMEBUILDING - 0.5%
Lennar Corporation 4,600 137,137
Rouse Company 4,900 154,044
HOTEL / GAMING - 0.4%
Host Marriott Corporation* 7,500 134,531
Mirage Resorts, Inc.* 6,000 129,000
HOUSEHOLD PRODUCTS - 0.7%
Lancaster Colony Corporation 6,000 227,250
Leggett & Platt, Inc. 9,000 225,000
INDUSTRIAL SERVICES - 3.6%
AccuStaff, Inc.* 6,000 187,500
Apollo Group, Inc.* 6,750 223,172
Equifax, Inc. 6,200 226,300
Interim Services* 6,000 192,750
Manpower, Inc. 3,900 111,881
Primark Corporation* 5,500 172,219
Quintiles Transnational Corporation* 5,000 245,937
Robert Half International, Inc.* 6,750 377,156
Romac International, Inc.* 10,000 303,750
Sylvan Learning Systems, Inc.* 4,500 147,375
Vincam Group, Inc.* 6,750 132,469
INSURANCE - 3.2%
Ace, Ltd. 8,900 347,100
Ambac Financial Group, Inc. 5,200 304,200
Mercury General Corporation 4,900 315,131
MGIC Investment Corporation 4,000 228,250
Progressive Corporation of Ohio 2,800 394,800
Protective Life Corporation 8,300 304,506
UICI* 4,500 122,625
MACHINERY - 1.2%
AGCO Corporation 5,000 102,812
Cognex Corporation* 5,000 92,500
Donaldson Company, Inc. 7,600 179,075
IDEX Corporation 5,500 190,094
Parker-Hannifin Corporation 4,500 171,563
MANUFACTURED HOUSING - 0.3%
Oakwood Homes Corporation 7,000 210,000
MEDICAL SERVICES - 6.0%
ABR Information Services, Inc.* 5,800 137,750
Concentra Managed Care, Inc.* 6,800 176,800
Genesis Health Ventures, Inc.* 4,500 112,500
Health Care & Retirement Corp.* 5,550 218,878
Health Management Associates* 11,137 372,394
HEALTHSOUTH Corporation* 9,500 253,531
IDX Systems Corporation* 4,600 211,888
Lincare Holdings, Inc.* 6,600 277,613
Omnicare, Inc. 7,500 285,000
Orthodontic Centers of America, Inc.* 7,500 157,031
PacifiCare Health Systems, Inc.* 1,500 132,562
PhyCor, Inc.* 6,000 99,375
Quorum Health Group, Inc.* 7,500 198,750
Tenet Healthcare Corporation* 6,075 190,224
Total Renal Care Holdings, Inc.* 12,343 425,799
United HealthCare Corporation 3,900 249,600
Universal Health Services, Inc.* 5,300 309,388
</TABLE>
See Notes To Financial Statements
10
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------------- ---------- --------------
<S> <C> <C>
MEDICAL SUPPLIES - 4.9%
Arterial Vascular Engineering, Inc.* 7,000 $ 250,250
Boston Scientific Corporation* 3,000 214,875
Cardinal Health, Inc. 4,125 386,719
Guidant Corporation 6,000 427,875
Henry Schein, Inc.* 4,500 207,562
Life Technologies, Inc. 5,250 164,719
Medtronic, Inc. 4,000 255,000
Physio-Control International Corp.* 6,500 171,031
Sofamor Danek Group, Inc.* 3,200 277,000
Sola International, Inc.* 4,000 130,750
Sybron International Corp.* 13,000 328,250
VISX, Inc.* 5,000 297,500
METAL FABRICATING - 0.2%
Kennametal, Inc. 3,500 146,781
NATURAL GAS - 0.2%
Sonat, Inc. 3,000 115,875
NEWSPAPER - 0.3%
Central Newspapers, Inc. 2,500 174,375
OFFICE EQUIPMENT & SUPPLIES - 0.2%
Diebold, Inc. 4,500 131,906
OILFIELD SERVICES - 2.2%
BJ Services Company* 7,000 203,437
Camco International, Inc. 4,000 311,500
Cooper Cameron Corporation* 3,400 173,400
EVI Weatherford, Inc.* 3,135 116,387
Noble Drilling Corporation* 6,700 161,219
Ocean Energy, Inc.* 5,460 106,811
Pride International, Inc.* 8,000 135,500
Smith International, Inc.* 6,300 219,319
PACKAGING & CONTAINER - 0.2%
Sealed Air Corporation* 3,400 124,950
PETROLEUM - 1.8%
Apache Corporation 4,500 141,750
Barrett Resources Corporation* 4,000 150,000
Devon Energy Corporation 4,500 157,219
Noble Affiliates, Inc. 4,400 167,200
Nuevo Energy Company* 3,000 96,375
Tosco Corporation 7,500 220,312
Veritas DGC, Inc.* 3,800 189,763
PRECISION INSTRUMENT - 0.9%
Dionex Corporation* 6,000 158,250
Roper Industries, Inc. 6,000 156,750
Teleflex, Inc. 6,000 228,750
PRINTING - 0.3%
Valassis Communications, Inc.* 5,500 212,094
PUBLISHING - 0.8%
Harcourt General, Inc. 4,500 267,750
Meredith Corporation 5,500 258,156
RAILROAD - 0.5%
Kansas City Southern Ind., Inc. 6,000 297,750
REAL ESTATE INVESTMENT MANAGEMENT - 1.1%
LaSalle Partners, Inc.* 7,300 320,288
LNR Property Corporation 4,600 119,600
Security Capital Group, Inc.* 9,000 239,625
REAL ESTATE INVESTMENT TRUST - 0.4%
National Health Investors, Inc. 3,700 122,562
Security Capital Pacific Trust 6,500 146,250
RECREATION - 0.9%
Carnival Corporation 9,000 356,625
Harley-Davidson, Inc. 6,000 232,500
RESTAURANT - 0.3%
Outback Steakhouse, Inc.* 4,750 185,250
</TABLE>
See Notes To Financial Statements
11
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ----------------------------------------------- ---------- --------------
<S> <C> <C>
RETAIL STORE - 9.2%
AutoZone, Inc.* 8,100 $ 258,694
Bed Bath & Beyond, Inc.* 7,000 362,688
BJ's Wholesale Club, Inc.* 5,500 223,437
Borders Group, Inc.* 8,000 296,000
CDW Computer Centers, Inc.* 2,500 125,000
Circuit City Stores, Inc. 5,300 248,438
CompUSA, Inc.* 6,600 120,450
Consolidated Stores Corporation* 5,300 192,125
CVS Corporation 6,000 233,625
Dollar General Corporation 14,875 588,492
Fred Meyer, Inc.* 5,320 226,100
Kohl's Corporation* 5,800 301,600
Lands' End, Inc.* 7,200 228,600
Men's Wearhouse, Inc.* 9,225 304,425
MSC Industrial Direct Co., Inc.* 8,000 228,000
Office Depot, Inc.* 6,000 190,500
OfficeMax, Inc.* 10,000 165,000
Starbucks Corporation* 4,000 213,750
Tiffany & Company 6,000 288,000
TJX Companies, Inc. 12,000 292,500
Viking Office Products, Inc.* 7,400 232,175
Williams-Sonoma, Inc.* 10,000 318,125
Zale Corporation* 7,000 222,687
SECURITIES BROKERAGE - 1.6%
Charles Schwab Corporation 9,000 292,500
Investment Technology Group* 7,800 214,500
Legg Mason, Inc. 3,500 201,469
Raymond James Financial, Inc. 10,125 303,750
SEMICONDUCTOR - 2.3%
Analog Devices, Inc.* 7,500 184,219
Applied Materials, Inc.* 5,500 162,250
Lattice Semiconductor Corporation* 2,500 71,015
Linear Technology Corporation 5,400 325,687
Maxim Integrated Products, Inc.* 12,000 380,250
SDL, Inc.* 5,000 119,375
Vitesse Semiconductor Corporation* 6,500 200,687
SHOE - 0.2%
Wolverine World Wide, Inc. 6,750 148,500
TELECOMMUNICATIONS EQUIPMENT - 1.9%
Ascend Communications, Inc.* 4,850 240,378
Aspect Telecommunications Corp.* 6,000 164,250
Coherent Commun. Systems Corp.* 5,000 234,063
DSP Communications, Inc.* 6,000 82,500
Tellabs, Inc.* 6,400 458,400
TELECOMMUNICATIONS SERVICE - 3.0%
360 Communications Company* 6,500 208,000
Centennial Cellular Corporation* 4,500 167,906
Intermedia Communications, Inc.* 7,000 293,562
McleodUSA Inc.-Class A* 4,500 174,938
Nextel Communications, Inc.* 3,000 74,625
Powertel, Inc.* 8,100 149,850
Saville Systems PLC-ADR* 8,000 401,000
United States Cellular Corporation* 3,500 107,625
WorldCom, Inc.* 6,500 314,844
TEXTILE - 0.2%
Unifi, Inc. 4,500 154,125
THRIFT - 0.7%
Charter One Financial, Inc. 5,000 168,438
JSB Financial, Inc. 5,000 292,813
TOILETRIES / COSMETICS - 0.2%
Alberto-Culver Company 4,500 130,500
TOYS - 0.4%
Mattel, Inc. 6,125 259,164
TRUCKING & TRANSPORT LEASING - 0.2%
Werner Enterprise, Inc. 7,500 142,969
--------------
TOTAL COMMON STOCK - 99.4%
(Cost $37,062,479) $63,322,101
==============
</TABLE>
*Securities are non-income producing
See Notes To Financial Statements
12
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- --------------------------------------- --------- ------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
BANK - 13.8%
Banc One Corporation A+ 8.740 09/15/03 $ 100,000 $ 111,505
Citicorp A 7.250 10/15/11 100,000 107,541
Harris Bankcorp, Inc. A+ 9.375 06/01/01 75,000 81,626
Morgan, J.P. & Company AA- 8.500 08/15/03 100,000 110,210
Security Pacific Corporation A 9.750 05/15/99 40,000 41,168
Swiss Bank Corp.-NY AA 7.375 07/15/15 75,000 83,812
CHEMICAL - 3.0%
duPont, E.I. de Nemours & Co. AA- 6.000 12/01/01 115,000 114,712
COMPUTER & PERIPHERALS - 2.0%
International Business Machines Corp. A+ 7.250 11/01/02 75,000 78,844
ELECTRIC & GAS UTILITIES - 10.9%
Duke Energy Corporation AA- 6.375 03/01/08 75,000 74,437
Florida Power Corporation AA- 6.875 02/01/08 70,000 73,840
Ontario Hydro AA- 7.450 03/31/13 150,000 169,499
Public Service Co. of Oklahoma AA- 7.250 01/01/99 50,000 50,367
Public Service Electric & Gas A- 7.000 09/01/24 50,000 50,313
ENVIRONMENTAL - 1.2%
Waste Management, Inc. BBB 7.650 03/15/11 45,000 46,683
FINANCIAL SERVICES - 2.8%
General Electric Capital Corporation AAA 7.750 03/15/02 100,000 106,274
FOOD PROCESSING - 2.8%
Archer Daniels Midland Company AA- 7.125 03/01/13 100,000 107,652
FOREIGN GOVERNMENT - 7.1%
Province of Ontario AA- 7.625 06/22/04 100,000 108,041
Province of Quebec A+ 8.800 04/15/03 150,000 166,854
GOVERNMENTAL AGENCY - 1.3%
Tennessee Valley Authority AAA 6.125 07/15/03 50,000 50,250
INSURANCE - 8.4%
Aetna Services, Inc. A 7.125 08/15/06 100,000 104,111
Allstate Corporation A+ 7.500 06/15/13 100,000 110,574
CIGNA Corporation A 8.250 01/01/07 100,000 110,782
</TABLE>
See Notes To Financial Statements
13
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- --------------------------------------- --------- ------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
MACHINERY - 6.0%
Caterpillar, Inc. A+ 9.000 04/15/06 $ 100,000 $ 116,830
Deere & Company A+ 8.950 06/15/19 100,000 114,000
METALS & MINING - 3.2%
Alcan Aluminum Ltd. A- 5.875 04/01/00 125,000 124,959
NEWSPAPER - 1.7%
Knight-Ridder, Inc. A 9.875 04/15/09 50,000 64,761
OFFICE EQUIPMENT & SUPPLIES - 0.8%
Xerox Corporation A 9.750 03/15/00 30,000 31,837
PETROLEUM - 3.9%
Kerr-McGee Corporation A- 7.000 11/01/11 150,000 149,665
RAILROAD - 2.8%
Missouri Pacific Railroad Co. A- 9.400 12/15/00 100,000 107,458
REAL ESTATE INVESTMENT MANAGEMENT - 2.9%
Rodamco N.V. AA 7.750 05/15/15 100,000 112,693
RETAIL STORE - 2.1%
Wal-Mart Stores, Inc. AA 8.625 04/01/01 75,000 79,819
SECURITIES BROKERAGE - 8.0%
Lehman Brothers Holdings, Inc. A 8.875 03/01/02 150,000 162,871
Merrill Lynch & Company, Inc. AA- 7.375 05/15/06 135,000 144,536
TELECOMMUNICATIONS SERVICE - 7.9%
AT&T Corporation AA- 7.750 03/01/07 90,000 99,186
GTE Southwest, Inc. AA- 5.820 12/01/99 100,000 99,818
Pacific Bell Telephone Co. AA- 7.000 07/15/04 100,000 104,711
TOBACCO - 2.6%
Philip Morris Companies, Inc. A 6.375 02/01/06 100,000 98,834
U.S. GOVERNMENT - 3.5%
U.S. Treasury 6.625 05/15/07 125,000 134,219
-------------
TOTAL FIXED-INCOME SECURITIES - 98.7%
(Cost $3,581,330) $3,805,292
=============
</TABLE>
See Notes To Financial Statements
14
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
ADVERTISING - 0.2%
Catalina Marketing Corporation* 1,100 $ 57,131
Outdoor Systems, Inc.* 6,750 189,000
AEROSPACE / DEFENSE - 0.8%
BE Aerospace, Inc.* 2,000 58,250
B.F. Goodrich Company 2,000 99,250
Boeing Company 5,740 255,788
General Motors Corp. - Class H 1,500 70,687
Gulfstream Aerospace Corporation* 1,700 79,050
Lockheed Martin Corporation 2,000 211,750
Raytheon Company - Class A 996 57,394
Raytheon Company - Class B 1,700 100,512
AIR TRANSPORT - 0.3%
Air Express International Corp. 2,400 64,200
ASA Holdings, Inc. 1,800 89,325
Comair Holdings, Inc. 2,362 72,926
Pittston Brink's Group 3,000 111,562
APPAREL - 0.3%
Nautica Enterprises, Inc.* 1,800 48,262
Quiksilver, Inc.* 3,000 59,812
VF Corporation 3,600 185,850
Warnaco Group, Inc. 1,500 63,656
AUTO PARTS - 0.3%
Borg-Warner Automotive, Inc. 2,000 95,875
Dana Corporation 2,600 139,100
Genuine Parts Company 3,000 103,500
AUTO & TRUCK - 0.3%
Ford Motor Company 3,500 206,500
General Motors Corporation 2,400 160,350
BANK - 5.5%
Banc One Corporation 3,590 200,366
Bank of Boston Corporation 5,080 282,575
Bank of New York Company, Inc. 2,800 169,925
BankAmerica Corporation 2,000 172,875
Chase Manhattan Corporation 9,680 730,840
City National Corporation 1,600 59,100
First American Corporation 4,400 211,750
First Chicago NBD Corporation 3,500 310,187
First Tennessee National Corp. 11,600 366,125
First Union Corporation 11,600 675,700
J.P. Morgan & Company 2,000 234,125
KeyCorp 5,000 178,125
Mellon Bank Corporation 5,400 376,312
Mercantile Bancorporation, Inc. 3,075 154,903
National City Corporation 2,000 142,000
NationsBank Corporation 12,350 944,775
Northern Trust Corporation 1,200 91,500
Norwest Corporation 1,800 67,275
PNC Bank Corporation 4,000 215,250
Silicon Valley Bancshares* 3,400 121,018
State Street Corporation 2,400 166,800
U.S. Bancorp 3,900 167,943
Wells Fargo & Company 933 344,277
BEVERAGE - 0.5%
Anheuser-Busch Companies, Inc. 7,400 348,725
Coca-Cola Company 1,000 85,500
PepsiCo, Inc. 3,000 123,562
BIOTECHNOLOGY - 0.1%
CliniChem Development, Inc.* 55 316
Human Genome Sciences, Inc.* 1,200 42,825
Incyte Pharmaceuticals, Inc.* 1,400 47,775
Millennium Pharmaceuticals, Inc.* 3,000 42,375
Protein Design Labs, Inc.* 1,100 26,503
BROADCASTING / CABLE TV - 0.8%
A.H. Belo Corporation 2,800 68,250
Chancellor Media Corporation* 2,400 119,175
</TABLE>
See Notes To Financial Statements
15
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
BROADCASTING / CABLE TV - 0.8% (Continued)
Clear Channel Communications* 2,200 $ 239,662
Cox Communications, Inc.* 1,500 72,656
Emmis Broadcasting Corporation* 1,500 71,718
Jacor Communications, Inc.* 1,500 88,500
Univision Communications, Inc.* 2,200 81,400
U.S. West Media Group* 4,000 175,000
Westwood One, Inc.* 1,700 42,871
BUILDING MATERIALS - 0.1%
American Standard Companies, Inc.* 1,100 49,156
Armstrong World Industries, Inc. 1,500 101,062
CHEMICAL - 1.7%
duPont, E.I. de Nemours & Co. 7,000 522,375
Lilly Industries, Inc. 2,500 54,062
Minnesota Mining & Manufacturing 2,000 164,375
Monsanto Company 8,000 447,000
Raychem Corporation 2,000 59,125
Rohm & Haas Company 1,000 103,937
Sherwin-Williams Company 4,000 132,500
Sigma-Aldrich Corporation 2,600 91,325
Union Carbide Corporation 2,100 112,087
Valspar Corporation 2,600 103,025
WD-40 Company 5,600 151,900
COMPUTER & PERIPHERALS - 0.9%
Cable Design Technologies* 2,000 41,250
Cisco Systems, Inc.* 1,950 179,521
Comverse Technology, Inc.* 800 41,500
EMC Corporation* 4,000 179,250
Gateway 2000, Inc.* 1,200 60,750
Hewlett-Packard Company 4,100 245,487
Microchip Technology, Inc.* 1,500 39,187
SCI Systems, Inc.* 2,000 75,250
Sun Microsystems, Inc.* 2,200 95,562
Xilinx, Inc.* 2,100 71,400
COMPUTER SOFTWARE & SERVICES - 2.6%
Adobe Systems, Inc. 1,200 50,925
Affiliated Computer Services, Inc.* 2,000 77,000
America Online, Inc.* 2,000 212,000
Automatic Data Processing, Inc. 4,000 291,500
BMC Software, Inc.* 4,000 207,750
Cadence Design Systems, Inc.* 3,700 115,625
Cambridge Technology Partners, Inc.* 2,000 109,250
CBT Group PLC-ADR* 2,000 107,000
Citrix Systems, Inc.* 1,800 123,075
Cognizant Corporation 1,600 101,000
Compuware Corporation* 4,000 204,500
DST Systems, Inc.* 1,500 84,000
Electronic Arts, Inc.* 1,500 81,000
First Data Corporation 1,488 49,569
HBO & Company 8,000 282,000
Intuit, Inc.* 1,700 104,125
Network Associates, Inc.* 1,800 86,175
Oracle Corporation* 3,787 93,018
Parametric Technology Company* 2,000 54,250
Peoplesoft, Inc.* 3,200 150,400
Shared Medical Systems Corporation 900 66,093
Sterling Commerce, Inc.* 2,300 111,406
Symantec Corporation* 2,400 62,700
Synopsys, Inc.* 2,000 91,500
Visio Corporation* 2,600 124,150
DIVERSIFIED - 1.3%
AlliedSignal, Inc. 10,200 452,625
Danaher Corporation 2,000 73,375
PPG Industries, Inc. 3,100 215,450
Service Corp. International 2,700 115,762
Textron, Inc. 3,000 215,062
Thermo Electron Corporation* 1,350 46,321
Tomkins PLC-ADR 4,900 112,087
TRW, Inc. 2,000 109,250
United Technologies Corporation 2,200 202,262
</TABLE>
See Notes To Financial Statements
16
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
DRUG - 4.2%
American Home Products Corp. 6,800 $ 351,900
Amgen, Inc.* 1,100 71,912
BioChem Pharma, Inc.* 2,200 58,300
Biogen, Inc.* 2,000 98,000
Bristol-Myers Squibb Company 12,400 1,425,225
Elan Corporation PLC-ADR* 1,500 96,468
Gilead Sciences, Inc.* 1,000 32,062
Guilford Pharmaceuticals, Inc.* 1,500 26,437
Merck & Company, Inc. 6,000 802,500
Pfizer, Inc. 6,000 652,125
Schering-Plough Corporation 4,000 366,500
Warner-Lambert Company 11,400 790,875
Watson Pharmaceuticals, Inc.* 1,600 74,700
DRUGSTORE - 0.1%
Rite Aid Corporation 4,000 150,250
ELECTRIC & GAS UTILITIES - 2.4%
AES Corporation* 2,200 115,638
Baltimore Gas & Electric Company 5,700 177,056
CMS Energy Corporation 2,300 101,344
Consolidated Edison Co. of N.Y. 1,900 87,519
Duke Energy Corporation 8,935 529,399
Edison International 6,500 192,156
FirstEnergy Corp. 4,500 138,375
Florida Progress Corporation 5,500 226,188
GPU, Inc. 3,600 136,125
Hawaiian Electric Industries, Inc. 2,300 91,281
New Century Energies, Inc. 4,700 213,556
Northern States Power Company 5,000 143,125
PacifiCorp 8,400 190,050
Southern Company 5,500 152,281
TECO Energy, Inc. 7,700 206,456
Texas Utilities Company 3,500 145,688
ELECTRICAL EQUIPMENT - 1.6%
Corning, Inc. 2,500 86,875
Emerson Electric Company 5,000 301,250
General Electric Company 14,000 1,274,000
Hubbell, Inc. 3,200 133,200
Littlefuse, Inc.* 2,000 50,500
ELECTRONICS - 0.3%
Altera Corporation* 2,000 59,125
Harman International Industries 1,050 40,425
Molex, Inc. 2,928 68,442
Symbol Technologies, Inc. 4,500 169,875
ENVIRONMENTAL - 0.5%
Browning-Ferris Industries, Inc. 4,500 156,375
Superior Services, Inc.* 3,100 93,194
U.S. Filter Corporation* 1,200 33,675
USA Waste Services, Inc.* 1,700 83,938
Waste Management, Inc. 5,500 192,500
FINANCIAL SERVICES - 2.1%
American Express Company 5,000 567,500
Associates First Capital Corporation 917 70,494
Cendant Corporation* 3,500 73,063
Countrywide Credit Industries, Inc. 4,000 203,000
Dun & Bradstreet Corporation* 4,700 169,788
Finova Group, Inc. 2,000 113,250
Franklin Resources, Inc. 3,000 157,875
Household International, Inc. 3,000 149,250
ING Groep N.V.-ADR 1 50
Mutual Risk Management, Ltd. 6,666 242,892
Paychex, Inc. 3,375 137,320
SLM Holding Corporation 2,800 136,850
SunAmerica, Inc. 1,800 103,500
Travelers Group, Inc. 5,400 327,375
</TABLE>
See Notes To Financial Statements
17
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
FOOD PROCESSING - 1.2%
General Mills, Inc. 2,700 $ 184,613
Goodmark Foods, Inc. 5,200 154,050
Heinz (H.J) Company 3,500 196,438
Hershey Foods Corp. 2,800 193,200
International Multifoods Corporation 1,500 41,250
Kellogg Company 3,000 112,688
Quaker Oats Company 2,000 109,500
Sara Lee Corporation 4,500 251,438
Tootsie Roll Industries, Inc. 1,273 97,703
FOREIGN TELECOMMUNICATIONS - 0.6%
BCE Inc. 4,400 187,550
Ericsson (LM) Telephone-ADR 3,600 103,050
Reuters Group PLC-ADR 1,733 118,711
Vodafone Group PLC-ADR 2,100 264,731
GROCERY - 0.3%
Albertson's, Inc. 2,900 150,075
Richfood Holdings, Inc. 2,000 41,500
Safeway, Inc.* 4,000 162,750
HOMEBUILDING - 0.2%
Lennar Corporation 1,700 50,681
Rouse Company 7,000 220,063
HOTEL / GAMING - 0.0%
Mirage Resorts, Inc.* 2,000 43,000
HOUSEHOLD PRODUCTS - 1.3%
Clorox Company 3,800 362,425
Colgate-Palmolive Company 6,200 545,600
Kimberly-Clark Corporation 5,800 266,075
Lancaster Colony Corporation 1,500 56,813
Leggett & Platt, Inc. 1,600 40,000
Proctor & Gamble Company 2,400 218,550
INDUSTRIAL SERVICES - 0.7%
AccuStaff, Inc.* 2,000 62,500
Apollo Group, Inc.* 2,250 74,391
Equifax, Inc. 2,600 94,900
Interim Services* 2,232 71,703
Manpower, Inc. 1,500 43,031
Primark Corporation* 1,800 56,363
Quintiles Transnational Corporation* 2,000 98,375
Robert Half International, Inc.* 2,250 125,719
Sylvan Learning Systems, Inc.* 3,075 100,706
Vincam Group, Inc.* 1,800 35,325
INSURANCE - 2.2%
Ace, Ltd. 3,000 117,000
AFLAC, Inc. 4,800 148,500
Allstate Corporation 3,615 330,998
Ambac Financial Group, Inc. 2,600 152,100
American International Group, Inc. 3,000 438,000
Hartford Financial Services Group, Inc. 2,000 226,750
Marsh & McLennan Companies, Inc. 3,900 235,706
MBIA, Inc. 3,000 224,625
Mercury General Corporation 1,400 90,038
MGIC Investment Corporation 2,000 114,125
Progressive Corporation of Ohio 1,000 141,000
Protective Life Corporation 2,200 80,713
St. Paul Companies, Inc. 5,400 227,138
MACHINERY - 1.0%
Aeroquip-Vickers, Inc. 2,100 122,588
AGCO Corporation 2,000 41,125
Caterpillar, Inc. 3,600 190,350
Cognex Corporation* 1,500 27,750
Deere & Company 4,200 222,075
Donaldson Company, Inc. 2,800 65,975
Dover Corporation 10,400 356,200
IDEX Corporation 2,000 69,125
Parker-Hannifin Corporation 1,575 60,047
</TABLE>
See Notes To Financial Statements
18
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
MANUFACTURED HOUSING - 0.1%
Oakwood Homes Corporation 2,000 $ 60,000
MEDICAL SERVICES - 0.9%
ABR Information Services, Inc.* 1,600 38,000
Health Care & Retirement Corp.* 3,700 145,919
Health Management Associates* 5,568 186,180
HEALTHSOUTH Corporation* 3,200 85,400
Lincare Holdings, Inc.* 2,000 84,125
Omnicare, Inc. 2,800 106,400
Orthodontic Centers of America, Inc.* 2,200 46,063
PacifiCare Health Systems, Inc.* 700 61,863
PhyCor, Inc.* 2,000 33,125
Quorum Health Group, Inc.* 2,250 59,625
Tenet Healthcare Corporation* 2,025 63,408
Total Renal Care Holdings, Inc.* 2,269 78,281
United HealthCare Corporation 1,300 83,200
Universal Health Services, Inc.* 2,200 128,425
MEDICAL SUPPLIES - 1.3%
Abbott Laboratories 7,200 294,300
Baxter International, Inc. 3,000 161,438
Boston Scientific Corporation* 1,400 100,275
Cardinal Health, Inc. 1,800 168,750
Guidant Corporation 2,000 142,625
Johnson & Johnson 2,560 188,800
Life Technologies, Inc. 1,800 56,475
Medtronic, Inc. 3,600 229,500
Sola International, Inc.* 1,500 49,031
Sybron International Corp.* 4,000 101,000
VISX, Inc.* 1,000 59,500
METAL FABRICATING - 0.0%
Kennametal, Inc. 1,000 41,938
METALS & MINING - 0.2%
Aluminum Company of America 4,000 263,750
NATURAL GAS - 0.3%
Enron Corporation 5,400 291,938
Sonat, Inc. 1,800 69,525
NEWSPAPER - 0.3%
Central Newspapers, Inc. 1,000 69,750
Gannett Company, Inc. 3,800 270,038
OFFICE EQUIPMENT & SUPPLIES - 0.5%
Diebold, Inc. 1,400 41,038
Pitney Bowes, Inc. 7,000 343,000
Xerox Corporation 1,900 193,088
OILFIELD SERVICES - 0.8%
Baker Hughes, Inc. 4,000 138,250
BJ Services Company* 2,200 63,938
Camco International, Inc. 1,000 77,875
Cooper Cameron Corporation* 900 45,900
Halliburton Company 7,000 311,938
Noble Drilling Corporation* 2,000 48,125
Ocean Energy, Inc.* 1,950 38,147
Pride International, Inc.* 2,800 47,425
Schlumberger, Ltd. 2,000 136,625
Smith International, Inc.* 2,300 80,069
PACKAGING & CONTAINER - 0.1%
Sealed Air Corporation* 2,000 73,500
PAPER & FOREST PRODUCTS - 0.6%
Fort James Corporation 3,000 133,500
Georgia Pacific Corporation 1,400 82,513
International Paper Company 8,000 344,000
Weyerhaeuser Company 2,200 101,613
PETROLEUM - 4.0%
Amerada Hess Corporation 1,300 70,606
Amoco Corporation 7,400 308,025
</TABLE>
See Notes To Financial Statements
19
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
PETROLEUM - 4.0% (Continued)
Apache Corporation 1,800 $ 56,700
Ashland Oil, Inc. 1,800 92,925
Atlantic Richfield Company 3,000 234,375
Barrett Resources Corporation* 1,400 52,500
British Petroleum Co. PLC-ADR 4,000 353,000
Devon Energy Corporation 1,500 52,406
Exxon Corporation 12,600 898,538
Mobil Corporation 10,000 766,250
Noble Affiliates, Inc. 2,800 106,400
Phillips Petroleum Company 4,100 197,569
Repsol SA-ADR 3,400 187,000
Royal Dutch Petroleum Company 13,600 745,450
Texaco, Inc. 2,300 137,281
Tosco Corporation 3,000 88,125
USX-Marathon Group 7,000 240,188
Veritas DGC, Inc.* 1,500 74,906
PRECISION INSTRUMENT - 0.2%
Dionex Corporation* 2,000 52,750
Roper Industries, Inc. 2,000 52,250
Teleflex, Inc. 2,000 76,250
PRINTING - 0.2%
R. R. Donnelley & Sons Company 2,500 114,375
Valassis Communications, Inc.* 1,600 61,700
PUBLISHING - 0.5%
Harcourt General, Inc. 1,700 101,150
McGraw-Hill, Inc. 4,000 326,250
Meredith Corporation 1,800 84,488
Value Line, Inc. 2,500 95,625
RAILROAD - 0.4%
Kansas City Southern Ind., Inc. 4,500 223,313
Norfolk Southern Corporation 8,100 241,481
REAL ESTATE INVESTMENT MANAGEMENT - 0.2%
LaSalle Partners, Inc.* 2,200 96,525
LNR Property Corporation 1,700 44,200
Security Capital Group, Inc.* 3,400 90,525
REAL ESTATE INVESTMENT TRUST - 1.3%
CarrAmerica Realty Corporation 5,000 141,875
Federal Realty Investment Trust 4,800 115,500
Meditrust Corporation 5,407 150,720
National Health Investors, Inc. 1,600 53,000
Nationwide Health Properties, Inc. 7,500 179,063
Security Capital Industrial Trust 7,908 197,700
Security Capital Pacific Trust 2,000 45,000
Simon DeBartolo Group, Inc. 3,400 110,500
Starwood Lodging Trust 5,000 241,563
United Dominion Realty Trust, Inc. 8,124 112,721
Weingarten Realty Investors 3,200 133,800
RECREATION - 0.8%
Brunswick Corporation 3,000 74,063
Carnival Corporation 4,000 158,500
Harley-Davidson, Inc. 4,000 155,000
Time Warner, Inc. 2,200 187,963
Walt Disney Company 3,000 315,188
RESTAURANT - 0.2%
McDonald's Corporation 2,500 172,500
Outback Steakhouse, Inc.* 2,250 87,750
RETAIL STORE - 2.5%
AutoZone, Inc.* 2,400 76,650
Bed Bath & Beyond, Inc.* 4,000 207,250
Borders Group, Inc.* 3,000 111,000
CDW Computer Centers, Inc.* 1,000 50,000
Circuit City Stores, Inc. 2,200 103,125
CompUSA, Inc.* 2,200 40,150
</TABLE>
See Notes To Financial Statements
20
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
RETAIL STORE - 2.5% (Continued)
Consolidated Stores Corporation* 1,900 $ 68,875
CVS Corporation 1,600 62,300
Dayton Hudson Corporation 8,000 388,000
Dollar General Corporation 7,812 309,062
J.C. Penney Company 1,618 117,002
Lands' End, Inc.* 2,200 69,850
Men's Wearhouse, Inc.* 2,250 74,250
MSC Industrial Direct Co., Inc.* 3,000 85,500
OfficeMax, Inc.* 3,400 56,100
Sears, Roebuck & Company 3,900 238,144
Starbucks Corporation* 4,000 213,750
Tandy Corporation 3,200 169,800
Tiffany & Company 2,300 110,400
TJX Companies, Inc. 4,400 107,250
Viking Office Products, Inc.* 2,200 69,025
Williams-Sonoma, Inc.* 3,000 95,438
Zale Corporation* 2,200 69,988
SECURITIES BROKERAGE - 0.8%
Bear Stearns Companies, Inc. 2,791 158,389
Charles Schwab Corporation 4,500 146,250
Investment Technology Group* 2,900 79,750
Merrill Lynch & Company, Inc. 2,400 221,400
Morgan Stanley, Dean Witter and Co. 4,000 365,500
SEMICONDUCTOR - 1.0%
Analog Devices, Inc.* 2,400 58,950
Applied Materials, Inc.* 1,500 44,250
Intel Corporation 4,800 355,800
Lattice Semiconductor Corporation* 800 22,725
Linear Technology Corporation 2,200 132,688
Maxim Integrated Products, Inc.* 4,800 152,100
Motorola, Inc. 2,500 131,406
SDL, Inc.* 1,500 35,813
Texas Instruments, Inc. 4,800 279,900
SHOE - 0.0%
Wolverine World Wide, Inc. 2,362 51,964
STEEL - 0.1%
Nucor Corporation 2,300 105,800
TELECOMMUNICATIONS EQUIPMENT - 0.4%
Ascend Communications, Inc.* 2,050 101,603
Aspect Telecommunications Corp.* 2,000 54,750
Coherent Commun. Systems Corp.* 1,500 70,219
DSP Communications, Inc.* 1,600 22,000
Tellabs, Inc.* 2,400 171,900
TELECOMMUNICATIONS SERVICE - 3.2%
360 Communications Company* 2,400 76,800
ALLTEL Corporation 4,500 209,250
Ameritech Corporation 6,000 265,875
AT&T Corporation 1,500 85,688
Bell Atlantic Corporation 8,200 374,125
BellSouth Corporation 10,000 671,250
Centennial Cellular Corporation* 1,000 37,313
Cincinnati Bell, Inc. 5,000 143,125
GTE Corporation 11,500 639,688
Intermedia Communications, Inc.* 2,400 100,650
Powertel, Inc.* 2,500 46,250
SBC Communications, Inc. 11,800 472,000
Southern New England Tele. Corp. 2,700 176,850
Sprint Corporation 3,200 228,400
United States Cellular Corporation* 1,100 33,825
US West, Inc. 0 11
WorldCom, Inc.* 2,700 130,781
TEXTILE - 0.0%
Unifi, Inc. 1,300 44,525
</TABLE>
See Notes To Financial Statements
21
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Common Stock Shares Value
- ------------------------------------------ --------- -----------
<S> <C> <C>
THRIFT - 0.6%
Fannie Mae 6,800 $ 413,100
Freddie Mac 4,000 188,250
JSB Financial, Inc. 1,500 87,844
TIRE & RUBBER - 0.1%
Goodyear Tire & Rubber Company 2,600 167,538
TOBBACO - 0.6%
Fortune Brands, Inc. 2,000 76,875
Philip Morris Companies, Inc. 12,900 507,938
UST, Inc. 3,000 81,000
TOILETRIES / COSMETICS - 0.5%
Alberto-Culver Company 1,400 40,600
Gillette Company 6,000 340,125
Int'l Flavors & Fragrances, Inc. 5,000 217,188
TOYS - 0.1%
Mattel, Inc. 3,125 132,227
TRUCKING & TRANSPORT LEASING - 0.1%
Werner Enterprise, Inc. 3,937 75,049
WATER UTILITY - 0.1%
American Water Works Co., Inc. 5,500 170,500
-----------
TOTAL COMMON STOCK - 57.4%
(Cost $32,921,738) $66,965,476
===========
</TABLE>
*Securities are non-income producing
See Notes To Financial Statements
22
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ --------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
AEROSPACE / DEFENSE - 1.1%
B.F. Goodrich Company A- 6.800 02/01/18 $ 500,000 $ 515,950
Lockheed Martin Corporation BBB+ 9.375 10/15/99 100,000 104,158
Lockheed Martin Corporation BBB+ 7.650 05/01/16 500,000 560,899
Rockwell International Corp. AA 8.875 09/15/99 100,000 103,513
AIR TRANSPORT - 0.4%
Federal Express Corporation BBB+ 8.760 05/22/15 350,000 416,500
AUTO & TRUCK - 0.5%
General Motors Corporation A 9.125 07/15/01 500,000 540,095
BANK - 5.5%
Bankers Trust Corporation A- 7.250 10/15/11 500,000 532,226
Chase Manhattan Corp. A 6.750 08/15/08 400,000 413,309
Comerica Bank A- 7.125 12/01/13 500,000 522,500
Dresdner Bank - NY AA- 7.250 09/15/15 500,000 532,694
First Chicago NBD Corporation A 8.100 03/01/02 500,000 520,625
First Union Corporation A- 8.000 08/15/09 500,000 544,565
First Union Corporation A- 9.450 06/15/99 100,000 103,133
MBNA America Bank, N.A. BBB 6.750 03/15/08 500,000 509,098
Morgan, J.P. & Company AA- 8.500 08/15/03 500,000 551,048
NationsBank Corporation A 6.500 03/15/06 500,000 509,507
Republic New York Corporation AA- 7.000 03/22/11 500,000 535,701
Royal Bank of Scotland A+ 6.375 02/01/11 500,000 498,607
Swiss Bank Corp.-NY AA 7.375 07/15/15 500,000 558,749
BEVERAGE - 0.4%
Anheuser Busch Companies, Inc. A+ 7.125 07/01/17 350,000 367,911
Anheuser Busch Companies, Inc. A+ 8.500 03/01/17 115,000 119,369
BUILDING MATERIALS - 0.5%
Masco Corporation A- 7.125 08/15/13 500,000 533,383
CHEMICAL - 0.5%
Monsanto Company A 8.875 12/15/09 500,000 607,369
COMPUTER & PERIPHERALS - 0.4%
Dell Computer Corporation BBB 6.550 04/15/08 500,000 504,649
</TABLE>
See Notes To Financial Statements
23
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ --------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
COMPUTER SOFTWARE & SERVICES - 0.4%
Computer Associates International, Inc. A- 6.500 04/15/08 $ 500,000 $ 496,950
DIVERSIFIED - 1.8%
Service Corp. International BBB+ 7.700 04/15/09 500,000 552,788
Tenneco, Inc. BBB 7.625 06/15/17 500,000 545,395
Textron, Inc. A- 8.750 07/01/22 500,000 554,140
Tyco International Ltd. A- 6.375 06/15/05 500,000 499,583
ELECTRIC & GAS UTILITIES - 5.3%
Alabama Power Company A+ 8.500 05/01/22 500,000 529,796
Dayton Power & Light Company AA- 8.150 01/15/26 500,000 549,176
Delmarva Power & Light Co. A 8.500 02/01/22 500,000 549,000
Duke Energy Corporation AA- 6.375 03/01/08 500,000 496,250
Florida Power Corporation AA- 8.000 12/01/22 500,000 544,319
Florida Power & Light Company AA- 7.875 01/01/13 500,000 524,053
Georgia Power Company A+ 7.625 03/01/23 450,000 470,530
Hydro Quebec A+ 7.000 03/01/05 500,000 519,904
Potomac Edison Company A+ 7.750 05/01/25 500,000 539,339
Public Service Electric & Gas A- 7.000 09/01/24 200,000 201,250
Union Electric Company AA- 8.750 12/01/21 500,000 555,592
Virginia Electric & Power Company A 8.000 03/01/04 500,000 544,732
FINANCIAL SERVICES - 4.9%
Dean Witter Discover & Company A+ 6.750 10/15/13 500,000 511,499
Deere, John Capital Corporation A 8.625 08/01/19 500,000 536,250
Dow Capital BV A 8.700 05/15/22 250,000 290,544
Fairfax Financial Holdings BBB+ 8.250 10/01/15 500,000 555,530
Fletcher Challenge Capital Canada, Inc. BBB 8.250 06/20/16 500,000 572,163
Ford Holdings, Inc. A 9.250 03/01/00 475,000 499,509
General Electric Capital Corporation AAA 7.750 03/15/02 500,000 531,372
IBM Credit Corporation A+ 6.750 12/24/07 500,000 498,478
Santander Finance Issuances A+ 6.375 02/15/11 500,000 489,971
Sears Roebuck Acceptance Corp. A- 6.875 10/15/17 500,000 511,457
SunAmerica, Inc. A 8.125 04/28/23 500,000 570,127
FOOD PROCESSING - 0.6%
Kraft, Inc. A 8.500 02/15/17 207,000 214,830
Nabisco, Inc. BBB 7.050 07/15/07 500,000 504,729
</TABLE>
See Notes To Financial Statements
24
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ --------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
FOREIGN GOVERNMENT - 1.4%
Province of Nova Scotia A- 7.250 07/27/13 $ 500,000 $ 541,972
Province of Quebec A+ 8.800 04/15/03 350,000 389,326
Province of Saskatchewan A 9.375 12/15/20 525,000 722,341
FOREIGN TELECOMMUNICATIONS - 0.4%
Cable & Wireless Communications plc A- 6.750 03/06/08 500,000 511,985
GROCERY - 0.4%
SUPERVALU INC. BBB+ 6.640 06/09/06 500,000 513,705
HOTEL / GAMING - 0.4%
ITT Corporation BBB 7.375 11/15/15 500,000 466,569
INDUSTRIAL SERVICES - 0.4%
ServiceMaster Company BBB 7.100 03/01/18 500,000 495,155
INSURANCE - 2.3%
Chubb Corporation AA+ 8.750 11/15/99 39,000 39,929
CIGNA Corporation A 8.250 01/01/07 500,000 553,909
CNA Financial Corporation A- 6.950 01/15/18 500,000 502,815
Leucadia National Corporation BBB+ 7.750 08/15/13 500,000 523,769
MBIA, Inc. AA 9.375 02/15/11 500,000 638,666
Metropolitan Life Insurance Co.* A+ 7.450 11/01/23 450,000 475,020
MACHINERY - 0.9%
Case Corporation A- 7.250 01/15/16 500,000 522,335
Clark Equipment Company A- 8.000 05/01/23 500,000 584,417
MEDICAL SUPPLIES - 1.0%
Cardinal Health, Inc. A 6.000 01/15/06 500,000 496,688
Johnson & Johnson AAA 8.720 11/01/24 550,000 639,775
METALS & MINING - 0.5%
Placer Dome, Inc. BBB 7.750 06/15/15 500,000 545,884
NATURAL GAS - 0.4%
Enron Corporation BBB+ 7.000 08/15/23 500,000 493,623
</TABLE>
See Notes To Financial Statements
25
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ --------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
NEWSPAPER - 0.1%
Knight-Ridder, Inc. A 9.875 04/15/09 $ 100,000 $ 129,522
OFFICE EQUIPMENT & SUPPLIES - 0.2%
Xerox Corporation A 9.750 03/15/00 200,000 212,247
PACKAGING & CONTAINER - 0.4%
Crown Cork & Seal Company, Inc. BBB 8.375 01/15/05 390,000 431,424
PAPER & FOREST PRODUCTS - 0.4%
Weyerhaeuser Company A 6.950 08/01/17 500,000 518,829
PETROLEUM - 1.6%
Atlantic Richfield Company A 8.500 04/01/12 250,000 300,172
Louisiana Land & Exploration Co. A- 7.625 04/15/13 500,000 552,372
OXY USA, Inc. BBB 7.000 04/15/11 525,000 520,270
Phillips Petroleum Company A- 8.860 05/15/22 500,000 545,000
PUBLISHING - 0.5%
News America Holdings BBB- 8.000 10/17/16 500,000 550,144
REAL ESTATE INVESTMENT MANAGEMENT - 0.5%
Rodamco N.V. AA 7.750 05/15/15 500,000 563,464
RENTAL AUTO / EQUIPMENT - 0.4%
The Hertz Corporation BBB+ 6.625 05/15/08 500,000 502,360
RESTAURANT - 0.4%
Darden Restaurants, Inc. BBB 7.125 02/01/16 500,000 499,750
RETAIL STORE - 0.7%
Dayton Hudson Corporation BBB+ 9.625 02/01/08 200,000 246,234
Pep Boys-Manny, Moe & Jack BBB+ 7.000 06/01/05 500,000 517,820
SECURITIES BROKERAGE - 1.2%
Bear Stearns Companies, Inc. A 7.250 10/05/06 500,000 528,751
Lehman Brothers Holdings, Inc. A 8.500 08/01/15 500,000 596,873
Merrill Lynch & Company, Inc. AA- 7.190 08/07/12 300,000 310,067
</TABLE>
See Notes To Financial Statements
26
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Principal Market
Fixed Income Securities Rating Coupon Maturity Amount Value
- ------------------------------------------ --------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
SEMICONDUCTOR - 0.4%
Applied Materials, Inc. BBB+ 7.125 10/15/17 $ 500,000 $ 515,265
TELECOMMUNICATIONS SERVICE - 2.4%
AT&T Corporation AA- 7.125 01/15/02 500,000 515,108
GTE Corporation A 6.460 04/15/08 500,000 497,853
MCI Communications Corporation A 7.750 03/15/24 500,000 526,850
Michigan Bell Telephone AAA 7.500 02/15/23 500,000 528,269
NYNEX Corporation A+ 7.375 12/15/11 250,000 253,437
Southwestern Bell Telephone Company AA 7.375 05/01/12 525,000 532,875
TOBACCO - 0.4%
Philip Morris Companies, Inc. A 9.000 01/01/01 400,000 424,946
U.S. GOVERNMENT - 0.9%
U.S. Treasury 6.500 08/15/05 1,000,000 1,055,156
TOTAL FIXED-INCOME SECURITIES - 40.9%
(Cost $45,442,011) 47,697,755
TOTAL COMMON STOCK - 57.4%
(Cost $32,921,738) 66,965,476
--------------
TOTAL INVESTMENTS IN SECURITIES - 98.3%
(Cost $78,363,749) $114,663,231
==============
</TABLE>
* Security exempt from registration under Rule 144A of the Securities
Act of 1933
See Notes To Financial Statements
27
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 1.1%
Heritage Media Corporation BB+ 02/15/06 8.750 $ 500,000 $ 540,984
Lamar Advertising Company B 12/01/06 9.625 700,000 748,485
Outdoor Systems, Inc. B 06/15/07 8.875 1,000,000 1,041,898
AEROSPACE / DEFENSE - 1.1%
AAR Corporation BBB 10/15/03 7.250 500,000 502,869
Lockheed Martin Corporation BBB+ 03/15/23 7.875 500,000 545,317
McDonnell Douglas Corporation AA 04/01/12 9.750 1,000,000 1,305,919
AIR TRANSPORT - 2.6%
AMR Corporation BBB- 08/01/12 9.000 1,000,000 1,204,055
AMR Corporation BBB- 03/15/00 9.750 100,000 105,628
Delta Air Lines, Inc. BBB- 02/01/11 10.375 500,000 655,957
Federal Express Corporation BBB+ 01/01/15 7.630 1,000,000 1,105,286
Northwest Airlines Corporation BB 03/15/07 8.700 1,000,000 1,050,307
United Airlines, Inc. BB+ 07/15/21 10.250 500,000 692,731
United Airlines, Inc. BB+ 08/15/21 9.750 500,000 663,875
APPAREL - 0.5%
Phillips-Van Heusen Corp. BB 11/15/23 7.750 1,000,000 1,015,575
AUTO PARTS - 1.2%
Federal-Mogul Corporation BB+ 07/01/06 7.750 500,000 499,820
JPS Automotive Products Corp. B 06/15/01 11.125 500,000 544,078
Titan International, Inc. BB- 04/01/07 8.750 1,000,000 1,030,000
Walbro Corporation B+ 07/15/05 9.875 500,000 484,115
AUTO & TRUCK - 1.6%
Ford Motor Company A 11/15/22 8.875 2,000,000 2,242,070
General Motors Corporation A 06/15/24 8.100 1,000,000 1,116,055
BANK - 6.5%
Banc One Corporation A+ 07/15/25 7.750 1,000,000 1,138,239
Bank of Boston Corporation BBB+ 12/01/05 6.625 1,000,000 1,017,950
Bankers Trust Corporation A- 11/15/15 7.500 1,500,000 1,607,961
Chase Manhattan Corp. A 10/15/08 6.125 1,000,000 986,250
Comerica Bank A- 12/01/13 7.125 1,000,000 1,045,000
Dresdner Bank - NY AA- 09/15/15 7.250 1,000,000 1,065,389
</TABLE>
See Notes To Financial Statements
28
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
BANK - 6.5% (Continued)
First Union Corporation A- 08/15/09 8.000 $ 500,000 $ 544,565
KeyCorp BBB+ 03/15/06 6.750 1,000,000 1,031,804
NCNB Corporation A 07/15/15 10.200 1,000,000 1,380,965
Republic New York Corporation AA- 05/15/21 9.125 1,000,000 1,297,959
Royal Bank of Scotland A+ 02/01/11 6.375 1,000,000 997,213
Swiss Bank Corp.-NY AA 06/15/17 7.375 1,000,000 1,087,365
Westpac Banking Corporation A+ 08/15/01 9.125 500,000 542,177
BEVERAGE - 0.5%
Anheuser Busch Companies, Inc. A+ 07/01/17 7.125 1,000,000 1,051,313
BROADCASTING / CABLE TV - 6.0%
CSC Holdings, Inc. BB- 05/15/06 9.875 750,000 822,390
Century Communications Corp. BB- 02/15/02 9.750 250,000 264,176
Century Communications Corp. BB- 03/01/05 9.500 1,000,000 1,081,500
Chancellor Media Corporation B 06/15/07 8.750 750,000 776,610
Comcast Cablevision BB+ 01/15/08 9.500 500,000 530,744
Comcast Cablevision BB+ 05/15/05 9.375 500,000 534,023
Continental Cablevision, Inc. BBB 08/01/13 9.500 500,000 593,480
Fox Family Worldwide, Inc. B 11/01/07 9.250 1,000,000 983,706
Jacor Communications Company B 12/15/06 9.750 750,000 803,758
Jones Intercable, Inc. BB+ 04/01/07 8.875 500,000 535,822
Jones Intercable, Inc. BB- 03/01/08 10.500 700,000 770,852
Lenfest Communications, Inc. BB+ 11/01/05 8.375 1,000,000 1,053,724
Rogers Cablesystems Ltd. BB+ 03/15/05 10.000 500,000 547,380
Sinclair Broadcast Group, Inc. B 09/30/05 10.000 500,000 537,799
Tele-Communications, Inc. BBB- 01/15/23 9.250 760,000 860,439
Tele-Communications, Inc. BBB- 02/15/23 8.750 500,000 551,153
Turner Broadcasting System, Inc. BBB- 07/01/13 8.375 750,000 855,466
Young Broadcasting, Inc. B 06/15/07 8.750 750,000 773,799
CHEMICAL - 1.5%
Borden Chemicals and Plastics, L.P. BB 05/01/05 9.500 500,000 502,664
duPont, E.I. de Nemours & Co. AA- 01/15/22 8.250 1,000,000 1,090,524
Eastman Chemical Company BBB+ 01/15/24 7.250 1,000,000 1,047,535
Union Carbide Chemicals & Plastics Co. BBB 04/01/23 7.875 600,000 659,575
COMPUTER & PERIPHERALS - 0.6%
International Business Machines Corp. A+ 11/01/19 8.375 1,000,000 1,206,250
</TABLE>
See Notes To Financial Statements
29
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
DIVERSIFIED - 0.6%
Tenneco, Inc. BBB 11/15/12 9.200 $ 500,000 $ 606,870
Textron, Inc. A- 07/01/22 8.750 581,000 643,910
ELECTRIC & GAS UTILITIES - 8.7%
Alabama Power Company A+ 12/01/24 9.000 1,000,000 1,090,917
Cleveland Electric Illuminating Company BB+ 08/01/12 8.375 500,000 512,500
Dayton Power & Light Company AA- 01/15/26 8.150 1,000,000 1,098,352
Florida Power & Light Company AA- 01/01/13 7.875 1,000,000 1,048,106
FPL Group Capital, Inc. A+ 05/01/13 7.625 1,025,000 1,062,637
Georgia Power Company A+ 02/01/23 7.950 852,000 892,119
Hydro Quebec A+ 01/15/22 8.400 850,000 1,045,344
Illinois Power Co. BBB 02/15/23 8.000 1,000,000 1,042,500
Indianapolis Power & Light Co. AA- 02/01/24 7.050 1,000,000 1,028,232
Long Island Lighting Company A- 07/15/19 8.900 473,000 503,478
New Orleans Public Service, Inc. BBB 03/01/23 8.000 600,000 631,377
Northern Illinois Gas Company AA 08/15/21 8.875 1,000,000 1,058,193
Philadelphia Electric Company BBB+ 09/01/22 8.250 1,000,000 1,046,522
Potomac Edison Company A+ 06/01/24 8.000 1,000,000 1,093,553
Potomac Electric Power Company A 06/01/21 9.000 1,000,000 1,105,657
Public Service Electric & Gas A- 09/01/24 7.000 1,000,000 1,006,250
Southern California Gas Company AA- 10/01/21 8.750 1,000,000 1,093,910
Virginia Electric & Power Company A 10/01/24 8.625 1,000,000 1,137,413
West Penn Power Company A+ 08/01/24 8.125 1,000,000 1,081,602
ELECTRICAL EQUIPMENT - 0.9%
Philips Electronics N.V. BBB+ 08/15/13 7.250 1,000,000 1,060,786
Westinghouse Electric Corp. BB 08/01/12 8.625 750,000 814,792
ENVIRONMENTAL - 0.8%
American Eco Corporation BB- 05/15/08 9.625 500,000 500,000
Laidlaw, Inc. BBB+ 05/15/23 8.250 1,000,000 1,149,801
FINANCIAL SERVICES - 5.1%
AMRESCO, Inc. B 03/15/04 10.000 1,000,000 1,042,500
Auburn Hills Trust A 05/01/20 12.000 400,000 660,133
ContiFinancial Corporation BB+ 04/01/08 8.125 1,000,000 1,016,000
CRA Finance USA, Ltd. AA- 12/01/13 7.125 500,000 538,671
Dean Witter Discover & Company A+ 10/15/13 6.750 1,250,000 1,278,748
Dow Capital BV A 05/15/22 8.700 1,000,000 1,162,178
</TABLE>
See Notes To Financial Statements
30
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 5.1% (Continued)
Fairfax Financial Holdings BBB+ 10/01/15 8.250 $ 1,500,000 $ 1,666,590
Fletcher Challenge Capital Canada, Inc. BBB 06/20/16 8.250 1,000,000 1,144,327
Imperial Credit Industries, Inc. B+ 01/15/07 9.875 500,000 493,180
Sears Roebuck Acceptance Corp. A- 10/15/17 6.875 500,000 511,457
SunAmerica, Inc. A 04/28/23 8.125 1,250,000 1,425,318
FOOD PROCESSING - 0.8%
Chiquita Brands Int'l, Inc. B+ 01/15/04 9.625 1,000,000 1,035,179
ConAgra, Inc. BBB 03/01/21 9.750 500,000 672,266
FOREIGN GOVERNMENT - 2.2%
Province of Newfoundland BBB+ 10/22/22 8.650 1,000,000 1,261,225
Province of Nova Scotia A- 07/27/13 7.250 1,000,000 1,083,943
Province of Quebec A+ 12/01/26 8.625 1,000,000 1,252,297
Province of Saskatchewan A 02/01/13 8.000 1,000,000 1,176,190
HOMEBUILDING - 2.9%
Beazer Homes USA, Inc. B+ 04/01/08 8.875 1,000,000 1,007,500
D.R. Horton, Inc. BB 04/15/06 10.000 500,000 546,239
Hovnanian Enterprises, Inc. B 06/01/05 9.750 500,000 499,820
M.D.C. Holdings, Inc. BB- 02/01/08 8.375 1,000,000 998,134
Ryland Group, Inc. B+ 07/15/02 10.500 1,050,000 1,095,522
Standard Pacific Corp. BB 06/15/07 8.500 1,000,000 998,683
U.S. Home Corporation BB- 08/15/07 8.880 1,000,000 1,019,816
HOTEL / GAMING - 3.6%
Boyd Gaming Corporation BB 10/01/03 9.250 1,000,000 1,036,603
Circus Circus Enterprises BB+ 07/15/13 7.625 450,000 435,973
Empress River Casino Finance Corp. BB 04/01/02 10.750 500,000 517,948
Grand Casinos, Inc. BB 12/01/03 10.125 1,000,000 1,079,243
Hilton Hotels Corporation BBB 12/15/09 7.200 1,000,000 990,132
Host Marriott Travel Plaza BB- 05/15/05 9.500 1,000,000 1,053,075
ITT Corporation BBB 11/15/15 7.375 1,000,000 933,137
Prime Hospitality Corp. BB 01/15/06 9.250 1,000,000 1,039,570
Station Casinos B+ 06/01/03 9.625 500,000 516,123
INSURANCE - 6.5%
Aetna Services, Inc. A 01/15/17 8.000 1,050,000 1,055,786
American Financial Group, Inc. BBB 12/15/07 7.125 1,000,000 1,018,440
</TABLE>
See Notes To Financial Statements
31
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INSURANCE - 6.5% (Continued)
CIGNA Corporation A 03/01/23 7.650 $ 500,000 $ 541,101
CNA Financial Corporation A- 11/15/23 7.250 1,000,000 1,035,630
CNA Financial Corporation A- 01/15/18 6.950 500,000 502,815
Continental Corporation BBB- 08/15/12 8.375 600,000 704,687
Kaufman & Broad Home Corp. B+ 05/01/03 9.375 1,000,000 1,027,653
Leucadia National Corporation BBB+ 08/15/13 7.750 910,000 953,259
Loews Corporation AA- 10/15/23 7.000 1,000,000 1,001,191
MBIA, Inc. AA 10/01/22 8.200 2,000,000 2,195,643
Metropolitan Life Insurance Co.* A+ 11/01/23 7.450 550,000 580,580
New York Life Insurance Company AA- 12/15/23 7.500 1,000,000 1,040,000
Penncorp Financial Group, Inc. BB- 12/15/03 9.250 500,000 510,235
Reliance Group Holdings, Inc. BB+ 11/15/00 9.000 1,000,000 1,047,850
Vesta Insurance Group BBB- 07/15/25 8.750 500,000 608,552
MACHINERY - 0.3%
Clark Equipment Company A- 05/01/23 8.000 500,000 584,417
MEDICAL SERVICES - 1.2%
Abbey Healthcare Group, Inc. B+ 11/01/02 9.500 500,000 487,809
Beverly Enterprises, Inc. B+ 02/15/06 9.000 500,000 529,239
HEALTHSOUTH Corporation BBB- 04/01/01 9.500 500,000 519,372
Tenet Healthcare Corporation BB- 01/15/07 8.625 1,000,000 1,033,456
MEDICAL SUPPLIES - 0.3%
Cardinal Health, Inc. A 02/15/04 6.500 700,000 714,721
METALS & MINING - 1.3%
Alcan Aluminum Ltd. A- 01/15/22 8.875 1,000,000 1,110,895
Inco Ltd. BBB- 06/15/22 9.600 500,000 565,738
Placer Dome, Inc. BBB 06/15/15 7.750 1,000,000 1,091,767
NATURAL GAS - 1.4%
AmeriGas Partners, L.P. BB+ 04/15/07 10.125 1,200,000 1,299,803
Consolidated Natural Gas Company AA- 12/01/11 8.625 154,000 158,620
Ferrellgas Partners, L.P. B+ 06/15/06 9.375 500,000 508,262
Seagull Energy BB+ 08/01/05 8.625 1,000,000 1,021,967
NEWSPAPER - 0.5%
Hollinger International, Inc. BB- 02/01/06 9.250 500,000 521,520
Hollinger International, Inc. BB- 03/15/07 9.250 500,000 527,382
</TABLE>
See Notes To Financial Statements
32
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
OILFIELD SERVICES - 3.0%
Dailey International, Inc. B 02/15/08 9.500 $ 500,000 $ 511,334
Dawson Production Services, Inc. B+ 02/01/07 9.375 1,000,000 1,025,227
Husky Oil, Ltd. BBB 11/15/16 7.550 1,000,000 1,030,000
J. Ray McDermott, S.A. BB+ 07/15/06 9.375 500,000 535,771
Lomak Petroleum, Inc. B 01/15/07 8.750 1,000,000 985,861
Offshore Logistics, Inc. BB 01/15/08 7.875 500,000 496,918
Trico Marine Services, Inc. BB- 08/01/05 8.500 1,000,000 1,032,590
Veritas DGC, Inc. BB+ 10/15/03 9.750 750,000 812,840
PACKAGING & CONTAINERS - 1.3%
Container Corp. of America B+ 04/01/03 9.750 400,000 430,302
Crown Cork & Seal Company, Inc. BBB 04/15/23 8.000 1,500,000 1,592,205
Stone Container Corporation B 02/01/01 9.875 750,000 766,557
PAPER & FOREST PRODUCTS - 2.1%
Bowater, Inc. BBB 10/15/12 9.500 700,000 872,305
Champion International Corporation BBB 09/01/23 7.625 1,500,000 1,551,951
Georgia-Pacific Corporation BBB- 07/01/22 9.125 1,000,000 1,106,361
Sweetheart Corporation, Inc. B+ 09/01/00 9.625 1,000,000 1,001,119
PETROLEUM - 4.9%
ANR Pipeline Company BBB 11/01/21 9.625 1,000,000 1,306,350
Clark Oil & Refining Corporation BB 09/15/04 9.500 650,000 666,715
Clark USA, Inc. B+ 12/01/05 10.875 500,000 545,000
Diamond Shamrock R & M, Inc. BBB 04/01/23 8.000 600,000 642,863
Kerr-McGee Corporation A- 11/01/11 7.000 1,500,000 1,489,095
Louisiana Land & Exploration Co. A- 04/15/13 7.625 1,000,000 1,104,744
NOVA Gas Transmission A- 04/01/23 7.875 600,000 690,482
OXY USA, Inc. BBB 04/15/11 7.000 1,000,000 990,991
Phillips Petroleum Company A- 01/01/23 8.490 1,000,000 1,115,000
USX Corporation BBB- 02/15/12 9.375 750,000 926,950
Vintage Petroleum, Inc. B+ 12/15/05 9.000 1,000,000 1,053,244
PUBLISHING - 0.9%
K-III Communications Corporation BB- 06/01/04 10.250 750,000 805,658
News America Holdings BBB- 08/10/18 8.250 1,000,000 1,128,122
RAILROAD - 1.0%
Kansas City Southern Industries, Inc. BBB- 07/01/22 8.800 500,000 546,411
Union Pacific Corporation BBB- 05/01/25 8.350 1,500,000 1,625,624
</TABLE>
See Notes To Financial Statements
33
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
REAL ESTATE INVESTMENT MANAGEMENT - 0.5%
Rodamco N.V. AA 05/15/15 7.750 $ 1,000,000 $ 1,126,927
REAL ESTATE INVESTMENT TRUST - 0.4%
Taubman Realty Group Ltd. BBB 10/01/03 7.000 750,000 755,350
RECREATION - 1.6%
Brunswick Corporation BBB+ 09/01/23 7.375 975,000 1,056,494
Speedway Motorsports, Inc. B+ 08/15/07 8.500 1,000,000 1,036,290
Time Warner, Inc. BBB- 01/15/13 9.125 1,000,000 1,210,291
RENTAL AUTO / EQUIPMENT - 0.5%
The Hertz Corporation BBB+ 05/15/08 6.625 1,000,000 1,004,719
RESTAURANT - 0.7%
Darden Restaurants, Inc. BBB 02/01/16 7.125 1,500,000 1,499,250
RETAIL STORE - 4.8%
Dayton Hudson Corporation BBB+ 12/01/22 8.500 1,500,000 1,642,026
Finlay Fine Jewelry Corporation B+ 05/01/08 8.375 1,000,000 993,531
J.C. Penney Company A 04/01/17 7.950 1,000,000 1,149,036
The Limited, Inc. BBB+ 03/15/23 7.500 1,000,000 1,017,708
May Department Stores A 07/15/26 8.300 1,000,000 1,121,394
Michaels Stores, Inc. BB- 06/15/06 10.875 1,000,000 1,098,910
Pep Boys-Manny, Moe & Jack BBB+ 06/01/05 7.000 1,000,000 1,035,640
Rite-Aid Corporation BBB+ 08/15/13 6.875 1,000,000 1,035,748
Sears, Roebuck & Company A- 11/01/11 9.375 1,000,000 1,260,314
SECURITIES BROKERAGE - 2.6%
Bear Stearns Companies, Inc. A 01/15/04 6.625 1,000,000 1,019,491
Goldman Sachs Group A+ 03/01/13 8.000 1,000,000 1,117,216
Lehman Brothers, Inc. A 05/15/05 11.625 1,023,000 1,304,239
Morgan Stanley Group, Inc. A+ 10/01/13 7.000 1,000,000 1,053,903
Paine Webber Group, Inc. BBB+ 02/15/14 7.625 1,000,000 1,092,840
SEMICONDUCTOR - 1.0%
Advanced Micro Devices, Inc. B 08/01/03 11.000 1,000,000 1,059,667
Applied Materials, Inc. BBB+ 10/15/17 7.125 1,000,000 1,030,530
SHOE - 0.5%
Brown Group, Inc. BB 10/15/06 9.500 1,000,000 1,061,874
</TABLE>
See Notes To Financial Statements
34
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
Credit Maturity Principal Market
Fixed Income Securities Rating Date Coupon Amount Value
- ------------------------------------------ -------- ---------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
STEEL - 0.5%
AK Steel Corporation BB- 12/15/06 9.125 $ 1,000,000 $ 1,038,103
TELECOMMUNICATIONS SERVICE - 5.7%
AT&T Corporation AA- 01/15/22 8.125 750,000 798,750
AT&T Corporation AA- 07/15/24 8.125 800,000 859,000
Comcast Cellular Communications, Inc. BB+ 05/01/07 9.500 1,000,000 1,038,739
GCI, Inc. B+ 08/01/07 9.750 1,000,000 1,037,647
GTE Corporation A 11/01/21 8.750 1,000,000 1,229,549
Illinois Bell Telephone Company AAA 03/15/24 7.250 1,425,000 1,473,933
MCI Communications Corporation A 03/15/24 7.750 1,000,000 1,053,700
New Jersey Bell Telephone AA 06/01/12 7.375 1,000,000 1,011,250
NYNEX Corporation A+ 12/15/11 7.375 500,000 506,875
Paging Network, Inc. B 02/01/06 8.875 1,000,000 992,131
SBC Communications Capital Corp. AA 05/01/12 7.375 1,000,000 1,015,000
SBC Communications Capital Corp. AA 07/15/25 7.250 1,000,000 1,027,998
TEXTILE - 0.7%
Dyersburg Corporation B+ 09/01/07 9.750 500,000 487,900
WestPoint Stevens, Inc. BB 06/15/05 7.875 1,000,000 996,250
TOBACCO - 0.7%
Philip Morris Companies, Inc. A 01/15/17 8.375 697,000 725,607
RJR Nabisco, Inc. BBB- 04/15/04 8.750 775,000 802,638
TOILETRIES/COSMETICS - 1.0%
Coty Inc. B+ 05/01/05 10.250 1,000,000 1,073,772
Platex Family Products Corp. B 12/15/03 9.000 1,000,000 1,025,609
U.S. GOVERNMENT - 3.0%
U.S. Treasury 08/15/26 6.750 1,000,000 1,143,594
U.S. Treasury 10/15/06 6.500 3,000,000 3,185,156
U.S. Treasury 11/15/12 10.375 1,500,000 2,007,656
------------
TOTAL FIXED INCOME SECURITIES - 97.7%
(Cost $195,474,324) $208,016,309
============
</TABLE>
* Security exempt from registration under Rule 144A of the
Securities Act of 1933
See Notes To Financial Statements
35
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY RETIREMENT
GROWTH BOND BALANCED INCOME
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities . . . . . . . . . $ 63,322,101 $ 3,805,292 $114,663,231 $208,016,309
Cash. . . . . . . . . . . . . . . . . . . . 614,812 0 1,640,770 3,473,660
Receivables
Dividends and interest . . . . . . . . . . 23,354 65,394 1,014,822 4,310,029
Securities sold. . . . . . . . . . . . . . 49,948 0 26,289 0
Prepaid expenses. . . . . . . . . . . . . . 1,413 711 2,178 3,985
------------- ------------- ------------- ------------
Total assets. . . . . . . . . . . . . . . . 64,011,628 3,871,397 117,347,290 215,803,983
LIABILITIES
Payable to affiliated entities
Investment advisory fees . . . . . . . . . 35,869 1,294 66,823 87,794
Distribution fees. . . . . . . . . . . . . 447 0 811 1,465
Accounts payable and accrued expenses . . . 15,306 12,813 21,159 32,562
Securities purchased. . . . . . . . . . . . 250,672 0 662,037 2,684,968
Distributions payable . . . . . . . . . . . 0 3,433 2,203 15,005
------------- ------------- ------------- ------------
Total liabilities . . . . . . . . . . . . . 302,294 17,540 753,033 2,821,794
------------- ------------- ------------- ------------
Net assets. . . . . . . . . . . . . . . . . $ 63,709,334 $ 3,853,857 $116,594,257 $212,982,189
============= ============= ============= ============
NET ASSETS
Paid-in capital . . . . . . . . . . . . . . $ 38,404,165 $ 3,629,674 $ 80,543,826 $199,266,705
Accumulated undistributed net investment
income (loss). . . . . . . . . . . . . . . (176,529) 0 0 0
Accumulated undistributed net realized
gain (loss) on investments . . . . . . . . (777,924) 221 (249,051) 1,173,499
Net unrealized appreciation in value of
investments. . . . . . . . . . . . . . . . 26,259,622 223,962 36,299,482 12,541,985
------------- ------------- ------------- ------------
Net assets. . . . . . . . . . . . . . . . . $ 63,709,334 $ 3,853,857 $116,594,257 $212,982,189
============= ============= ============= ============
SHARES OUTSTANDING. . . . . . . . . . . . . . 3,320,620 365,340 6,924,308 19,863,900
============= ============= ============= ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE. . . . . . . . . $ 19.19 $ 10.55 $ 16.84 $ 10.72
============= ============= ============= ============
</TABLE>
See Notes To Financial Statements
36
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1998
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY RETIREMENT
GROWTH BOND BALANCED INCOME
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . $ 11,001 $ 142,786 $ 1,552,872 $ 7,872,098
Dividends. . . . . . . . . . . . . . . . 119,540 0 512,685 0
------------ ------------ ------------ ------------
Total investment income. . . . . . . . . 130,541 142,786 2,065,557 7,872,098
EXPENSES
Paid to affiliates:
Investment advisory fees . . . . . . . 208,835 8,178 380,086 511,619
Administration fees. . . . . . . . . . 0 0 0 0
Distribution fees. . . . . . . . . . . 74,584 0 135,745 255,809
Transfer and dividend disbursing
agent fees . . . . . . . . . . . . . 0 0 0 0
Paid to others:
Custodial fees . . . . . . . . . . . . 12,604 1,205 11,857 5,430
Directors fees and expenses. . . . . . 1,611 126 3,021 5,798
Professional fees. . . . . . . . . . . 2,045 127 3,744 6,871
Shareholder reporting costs. . . . . . 3,175 215 5,772 10,778
Registration and filing fees . . . . . 2,104 733 6,405 10,097
Other operating expenses . . . . . . . 2,112 221 4,126 9,522
------------ ------------ ------------ ------------
Total expenses . . . . . . . . . . . . . 307,070 10,805 550,756 815,924
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS). . . . . . . . (176,529) 131,981 1,514,801 7,056,174
REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from securities sold. . . . . . 4,736,107 530,402 4,590,631 21,802,577
Cost of securities sold. . . . . . . . . (5,514,031) (530,181) (4,839,682) (20,587,858)
------------ ------------ ------------ ------------
Net realized gain (loss) on investments. (777,924) 221 (249,051) 1,214,719
UNREALIZED GAIN ON INVESTMENTS
Appreciation, Beginning of year. . . . . 19,152,504 215,460 28,576,083 12,371,461
Appreciation, End of period. . . . . . . 26,259,622 223,962 36,299,482 12,541,985
------------ ------------ ------------ ------------
Net unrealized gain on investments . . . 7,107,118 8,502 7,723,399 170,524
------------ ------------ ------------ ------------
NET GAIN ON INVESTMENTS . . . . . . . . . . 6,329,194 8,723 7,474,348 1,385,243
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. . . . . . . . $6,152,665 $ 140,704 $8,989,149 $ 8,441,417
============ ============ ============ ============
</TABLE>
See Notes To Financial Statements
37
<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,
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss). . . . . . . . . . . . . $ (176,529) $ (270,430) $ 131,981 $ 282,005
Net realized gain (loss) on investments . . . . . . . (777,924) 356,554 221 38,190
Net unrealized gain (loss) on investments . . . . . . 7,107,118 7,883,116 8,502 64,390
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations. 6,152,665 7,969,240 140,704 384,585
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . 0 0 (131,981) (282,005)
Net realized gain on investments. . . . . . . . . . . 0 (228,769) 0 (37,120)
------------- ------------- ------------- -------------
Total distributions to shareholders . . . . . . . . . 0 (228,769) (131,981) (319,125)
Share Transactions:
Net proceeds from sale of shares. . . . . . . . . . . 5,850,007 11,871,517 76,526 665,380
Reinvestment of distributions . . . . . . . . . . . . 0 228,701 110,864 267,980
Cost of shares reacquired . . . . . . . . . . . . . . (2,625,566) (4,275,354) (545,251) (1,226,311)
------------- ------------- ------------- -------------
Net increase (decrease) derived from share
transactions. . . . . . . . . . . . . . . . . . . . 3,224,441 7,824,864 (357,861) (292,951)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets . . . . . . . . 9,377,106 15,565,335 (349,138) (227,491)
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 54,332,228 38,766,893 4,202,995 4,430,486
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . . . $63,709,334 $54,332,228 $ 3,853,857 $ 4,202,995
============= ============= ============= =============
NUMBER OF SHARES
Sold. . . . . . . . . . . . . . . . . . . . . . . . . 313,241 774,840 7,229 64,974
Shares issued from reinvestment of distributions. . . 0 13,258 10,508 25,755
Reacquired. . . . . . . . . . . . . . . . . . . . . . (143,064) (271,579) (51,772) (118,547)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding . . . . 170,177 516,519 (34,035) (27,818)
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 3,150,443 2,633,924 399,375 427,193
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . . 3,320,620 3,150,443 365,340 399,375
============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
38
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
RETIREMENT
BALANCED INCOME
---------------------------- ----------------------------
(Unaudited) (Unaudited)
Six months Year Six months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss). . . . . . . . . . . . . $ 1,514,801 $ 2,662,530 $ 7,056,174 $13,297,465
Net realized gain (loss) on investments . . . . . . . (249,051) 1,902,416 1,214,719 929,733
Net unrealized gain (loss) on investments . . . . . . 7,723,399 11,905,973 170,524 7,541,320
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations. 8,989,149 16,470,919 8,441,417 21,768,518
Distributions to Shareholders:
Net investment income . . . . . . . . . . . . . . . . (1,514,801) (2,662,530) (7,056,174) (13,297,465)
Net realized gain on investments. . . . . . . . . . . 0 (1,902,416) 0 0
------------- ------------- ------------- -------------
Total distributions to shareholders . . . . . . . . . (1,514,801) (4,564,946) (7,056,174) (13,297,465)
Share Transactions:
Net proceeds from sale of shares. . . . . . . . . . . 13,445,472 17,779,709 15,440,062 28,904,791
Reinvestment of distributions . . . . . . . . . . . . 1,501,739 4,535,246 6,973,230 13,134,267
Cost of shares reacquired . . . . . . . . . . . . . . (5,248,761) (10,001,142) (11,327,452) (20,798,196)
------------- ------------- ------------- -------------
Net increase (decrease) derived from share
transactions. . . . . . . . . . . . . . . . . . . . 9,698,450 12,313,813 11,085,840 21,240,862
------------- ------------- ------------- -------------
Net increase (decrease) in net assets . . . . . . . . 17,172,798 24,219,786 12,471,083 29,711,915
NET ASSETS
Beginning of year . . . . . . . . . . . . . . . . . . 99,421,459 75,201,673 200,511,106 170,799,191
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . . . $116,594,257 $ 99,421,459 $212,982,189 $200,511,106
============= ============= ============= =============
NUMBER OF SHARES
Sold. . . . . . . . . . . . . . . . . . . . . . . . . 817,332 1,211,965 1,448,606 2,825,132
Shares issued from reinvestment of distributions. . . 90,941 298,348 653,429 1,275,428
Reacquired. . . . . . . . . . . . . . . . . . . . . . (320,695) (671,556) (1,062,518) (2,023,575)
------------- ------------- ------------- -------------
Net increase (decrease) in share outstanding. . . . . 587,578 838,757 1,039,517 2,076,985
Outstanding:
Beginning of year . . . . . . . . . . . . . . . . . 6,336,730 5,497,973 18,824,383 16,747,398
------------- ------------- ------------- -------------
End of period . . . . . . . . . . . . . . . . . . . 6,924,308 6,336,730 19,863,900 18,824,383
============= ============= ============= =============
</TABLE>
See Notes To Financial Statements
39
<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 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 exchange 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 are
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.
40
<PAGE>
NOTE 2. ACCOUNTING POLICIES (CONTINUED)
Dividends
Income dividends in the Bond, Balanced 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, 1998 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 Fund. 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 for the first $100 million of assets managed and
.15% of the average daily net assets exceeding $100 million. 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.
41
<PAGE>
NOTE 3. TRANSACTIONS WITH AFFILIATES (CONTINUED)
The COMPANY was charged investment advisory fees of $1,108,718
by MANAGEMENT for the six months ended June 30, 1998. The COMPANY
was charged distribution fees of $466,138 by SERVICES for the six
months ended June 30, 1998. At June 30, 1998 the employee
retirement plans sponsored by SERVICES owned 58,817 shares (1.8%)
of the Equity Growth Fund and 16,564 shares (0.2%) 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, 1998 were as follows:
<TABLE>
<CAPTION>
Equity Retirement
Growth Bond Balanced Income
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases $ 7,890,064 $ 207,177 $14,232,659 $36,775,012
Sales 4,736,107 530,402 4,590,631 21,802,577
</TABLE>
The cost of purchases and proceeds from sales of U.S. Government
Securities included above were as follows:
<TABLE>
<CAPTION>
Equity Retirement
Growth Bond Balanced Income
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Purchases None $ 95,928 None $ 2,650,781
Sales None 69,198 None 3,754,063
</TABLE>
Gross unrealized appreciation and depreciation of investments
for book and tax purposes as of June 30, 1998 were as follows:
<TABLE>
<CAPTION>
Equity Retirement
Growth Bond Balanced Income
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Appreciation $27,528,036 $ 226,114 $36,927,311 $12,974,267
Depreciation 1,268,414 2,152 627,829 432,282
</TABLE>
42
<PAGE>
NOTE 5. CASH
As of June 30, 1998, substantially all cash was invested in the
Monitor Money Market Fund, bearing interest at a variable rate
(approximately 5.1%).
NOTE 6. CAPITAL LOSS CARRYOVERS
At December 31, 1997, capital loss carryovers and their
expiration dates were as follows:
Retirement
Income
---------
December 31, 2004 $41,220
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 four portfolios has
200 million shares authorized.
43
<PAGE>
Advance Capital I, Inc.
ADVANCE CAPITAL I Inc.
INVESTMENT ADVISER: An investment company with four funds
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 RETIREMENT INCOME FUND
Baltimore, Maryland 21202
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 National Bank
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, 1998
Frank R. Zimmerman
