<PAGE>
SEMI-ANNUAL REPORT
June 30, 2000
ADVANCE CAPITAL I, INC.
An investment company with five funds
<PAGE>
TABLE OF CONTENTS
--------------------------------------------
Page
A Letter to Our Shareholders...............2
Financial Highlights.......................4
PORTFOLIO OF INVESTMENTS
Equity Growth Fund....................9
Bond Fund............................14
Balanced Fund........................19
Retirement Income Fund...............32
Cornerstone Stock Fund...............40
Statement of Assets and Liabilities.......42
Statement of Operations...................43
Statement of Changes in Net Assets........44
Notes to Financial Statements.............47
<PAGE>
Dear Shareholders:
Much has changed in six months! The financial markets have
turned cautious, the Federal Reserve has stopped raising rates
and the Presidential election is fast approaching. Investors
are bewildered by the plethora of information swirling around
the economy and uncertain about its impact to stocks and bonds.
Some data points to a slowing economy, while other data suggests
an accelerating one. One month it appears inflation is tame,
the next it's on the rise. This apparent economic ambivalence
has left investors cautious and the financial markets very volatile.
Higher consumer prices and three interest rate hikes by the
Federal Reserve since the beginning of the year did not deter
investors from bidding up the prices on many technology stocks
early in the year. In the first quarter the technology ladened
NASDAQ 100 Index had returned almost 26.5 percent and investor
euphoria was rampant. Dreams of another year of triple digit
returns quickly faded, however, as investors realized that
inflation fears could become real and that stock valuations
were seriously out of line by historical measures. A tidal wave
of doubt crashed through the equity markets and, by the end of
May, the NASDAQ 100 had fallen almost 40 percent from its March
high. By June, the pressure of higher interest rates began to
slow economic activity somewhat and further action by the Fed,
at least in the short term, appeared unnecessary. At this same
time predictions of strong second quarter corporate earnings began
to surface to the surprise of many investors. The upbeat news
brought a bit of optimism back to the equity markets and a stocks
began to rebound from their lows.
In the corporate bond market, higher interest rates and
sustained inflationary pressures continue to depress prices on
investment grade issues. The sentiment in the high yield market
is not much better. General investor apathy and a lack of
liquidity have depressed high yield bond prices while muting the
new issue market. Although many investors anticipate a rebound
in this sector during the second half of the year, the average
high yield bond declined just over one percent through June 30th.
While corporate and high yield bonds languished, the long U.S.
Treasury Bond rebounded following the Treasury Department's
announcement to retire all thirty year bonds within five years.
Through the first six months, the Advance Capital I, Inc.
Equity Growth Fund increased 16.8 percent, better than the 4.3
percent return of the mid-cap fund index followed by Lipper
Analytical Services, Inc. The Balanced Fund returned 3.9 percent
for the first six months compared to the 1.7 percent return by the
Lipper Balanced Fund Index. The Bond and Retirement Income Funds
returned 0.4 percent, respectively, compared to the Lipper BBB Bond
Index return of 2.4 percent. The Cornerstone Stock Fund returned
0.3 percent for the six month period, compared to the S&P 500 Index
which returned -0.4 percent.
Although the capital markets are concerned with near term
economic growth and inflation, long term prospects remain very
favorable. The latest quarterly Gross Domestic Product numbers
showed the economy growing at 5.2 percent for the year, well above
expectations and significantly higher than the Fed's target of about
3 percent. Strong economic growth, the lowest unemployment rate
in thirty years and high consumer spending have forced the Federal
Reserve to raise interest rates six times over the last eighteen
months. Higher rates should eventually
2
<PAGE>
slow economic activity and consumer spending. The challenge
for the Fed, however, is to engineer an economic "soft landing".
If interest rates get too high, the economy could be thrown
into a recession. On the other hand if growth remains high,
the demand for goods will outstrip the supply and inflation
will result. The Fed's top priority is maintaining a balance
between these economic forces. In the mean time, as
expectations about growth and inflation
collide, stocks and bonds will remain volatile.
On the International front, foreign markets continue to
stabilize after a turbulent year in 1999. The replacement of
Boris Yeltzin in the Kremlin and the cooling of rhetoric
between Taiwan and mainland China has brought some calm to
Asia. The US Dollar, compared to the Euro and Yen, continues
to climb in value which boosts exports from these countries
and widens our trade deficit with them. The globalization of
world markets has forced companies to be more competitive
while selling into emerging markets. This helped boost profit
margins and growth rates for many U.S.-based companies. As
the world continues its shift toward a free market society,
the global economy will mature and drive the strategies and
economies of its participating nations.
The complex issues affecting the financial markets are
not new, nor particularly onerous. The degree to which
corporate America, the Federal Reserve and the U.S. Government
respond to them, however, is critical to future success. As
in any period of uncertainty, the best investment approach is
to remain focused on your original investment objectives.
The success of the Advance Capital I, Inc. Funds to date has
come from adhering to the investment objectives, staying focused
on security selection and controlling investment costs. We
fully expect this approach will continue to serve our clients
well over time. If you have any questions or need service,
please call us.
Sincerely,
/s/ John C. Shoemaker /s/ Robert J. Cappelli
John C. Shoemaker Robert J. Cappelli
August 14, 2000
3
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY GROWTH
--------------------------------------------------------------
(Unaudited)
Six months
ended Years ended December 31
June 30, -------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $26.43 $20.05 $17.25 $14.72 $12.53 $9.08
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income (loss) (0.11) (0.14) (0.10) (0.09) (0.07) (0.03)
Net realized and unrealized gain (loss)
on investments 4.55 10.01 2.90 2.69 2.26 3.48
-------- -------- -------- -------- -------- --------
Total from investment operations 4.44 9.87 2.80 2.60 2.19 3.45
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gain on investments 0.00 (3.49) 0.00 (0.07) 0.00 0.00
-------- -------- -------- -------- -------- --------
Total distributions 0.00 (3.49) 0.00 (0.07) 0.00 0.00
-------- -------- -------- -------- -------- --------
Net asset value, end of period $30.87 $26.43 $20.05 $17.25 $14.72 $12.53
======== ======== ======== ======== ======== ========
Total Return 16.80% 50.14% 16.23% 17.68% 17.48% 38.00%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $142,848 $114,515 $68,061 $54,332 $38,767 $25,625
Ratio of expenses to average net assets 1.01% 1.02% 1.02% 1.07% 1.09% 1.12%
Ratio of net investment income (loss)
to average net assets -0.75% -0.63% -0.58% -0.58% -0.50% -0.29%
Portfolio turnover rate 23.72% 36.49% 22.34% 20.53% 24.75% 13.86%
</TABLE>
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, -------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $9.58 $10.62 $10.52 $10.37 $10.79 $9.61
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income 0.36 0.75 0.67 0.69 0.70 0.70
Net realized and unrealized gain (loss)
on investments (0.31) (1.04) 0.15 0.24 (0.42) 1.18
-------- -------- -------- -------- -------- --------
Total from investment operations 0.05 (0.29) 0.82 0.93 0.28 1.88
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income (0.36) (0.75) (0.67) (0.69) (0.70) (0.70)
Net realized gain on investments 0.00 0.00 (0.05) (0.09) 0.00 0.00
-------- -------- -------- -------- -------- --------
Total distributions (0.36) (0.75) (0.72) (0.78) (0.70) (0.70)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $9.27 $9.58 $10.62 $10.52 $10.37 $10.79
======== ======== ======== ======== ======== ========
Total Return 0.40% -3.71% 8.12% 9.41% 2.81% 20.15%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $53,783 $34,362 $3,746 $4,203 $4,430 $4,527
Ratio of expenses to average net assets 0.73% 0.73% 0.52% 0.54% 0.55% 0.55%
Ratio of net investment income to average
net assets 7.65% 6.64% 6.35% 6.65% 6.71% 6.80%
Portfolio turnover rate 18.02% 32.43% 11.56% 21.95% 19.77% 6.69%
</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, -------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $17.02 $17.13 $15.69 $13.68 $12.57 $9.97
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income 0.26 0.51 0.48 0.45 0.41 0.35
Net realized and unrealized gain (loss)
on investments 0.41 0.87 1.56 2.32 1.37 2.75
-------- -------- -------- -------- -------- --------
Total from investment operations 0.67 1.38 2.04 2.77 1.78 3.10
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income (0.26) (0.51) (0.48) (0.45) (0.41) (0.35)
Net realized gain on investments 0.00 (0.98) (0.12) (0.31) (0.26) (0.15)
-------- -------- -------- -------- -------- --------
Total distributions (0.26) (1.49) (0.60) (0.76) (0.67) (0.50)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $17.43 $17.02 $17.13 $15.69 $13.68 $12.57
======== ======== ======== ======== ======== ========
Total Return 3.94% 8.37% 13.15% 20.50% 14.48% 31.53%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $188,940 $169,216 $125,883 $99,421 $75,202 $59,299
Ratio of expenses to average net assets 1.01% 1.03% 1.01% 1.04% 1.06% 1.07%
Ratio of net investment income to average
net assets 2.98% 2.79% 2.92% 3.02% 3.17% 3.11%
Portfolio turnover rate 9.71% 23.76% 11.04% 10.13% 12.79% 22.72%
</TABLE>
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, -------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $9.61 $10.56 $10.65 $10.20 $10.51 $9.22
-------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income 0.36 0.71 0.73 0.74 0.75 0.76
Net realized and unrealized gain (loss)
on investments (0.32) (0.95) (0.08) 0.45 (0.31) 1.29
-------- -------- -------- -------- -------- --------
Total from investment operations 0.04 (0.24) 0.65 1.19 0.44 2.05
-------- -------- -------- -------- -------- --------
Less distributions
Net investment income (0.36) (0.71) (0.73) (0.74) (0.75) (0.76)
Net realized gain on investments 0.00 0.00 (0.01) 0.00 0.00 0.00
-------- -------- -------- -------- -------- --------
Total distributions (0.36) (0.71) (0.74) (0.74) (0.75) (0.76)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $9.29 $9.61 $10.56 $10.65 $10.20 $10.51
======== ======== ======== ======== ======== ========
Total Return 0.42% -2.33% 6.20% 12.20% 4.54% 22.96%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $200,005 $209,791 $221,221 $200,511 $170,799 $139,299
Ratio of expenses to average net assets 0.79% 0.81% 0.79% 0.82% 0.82% 0.84%
Ratio of net investment income to average
net assets 7.59% 7.06% 6.87% 7.21% 7.45% 7.64%
Portfolio turnover rate 14.24% 17.89% 19.52% 16.60% 8.34% 15.63%
</TABLE>
See Notes To Financial Statements
7
<PAGE>
ADVANCE CAPITAL I, INC.
FINANCIAL HIGHLIGHTS - Continued
---------------------------------------------------------------
<TABLE>
<CAPTION>
CORNERSTONE STOCK
---------------------------------
(Unaudited)
Six months Partial
ended Year ended Year Ended*
June 30, Dec. 31 Dec. 31
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $13.55 $10.46 $10.00
-------- -------- --------
Income from investment operations
Net investment income 0.00 0.01 0.00
Net realized and unrealized gain (loss)
on investments 0.04 3.09 0.46
-------- -------- --------
Total from investment operations 0.04 3.10 0.46
-------- -------- --------
Less distributions
Net investment income 0.00 (0.01) 0.00
Net realized gain on investments 0.00 0.00 0.00
-------- -------- --------
Total distributions 0.00 (0.01) 0.00
-------- -------- --------
Net asset value, end of period $13.59 $13.55 $10.46
======== ======== ========
Total Return 0.30% 29.62% 4.60%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $69,384 $52,356 $7,316
Ratio of expenses to average net assets 0.72% 0.77% 0.66%**
Ratio of net investment income to average
net assets 0.07% 0.11% 1.20%**
Portfolio turnover rate 1.68% 7.62% 0.00%
</TABLE>
* From December 17, 1998 (commencement of
operations) to December 31, 1998.
** Annualized
See Notes To Financial Statements
8
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------- ------ --------------
<S> <C> <C>
ADVERTISING - 2.3%
Catalina Marketing Corporation* 5,600 $ 571,200
Harte-Hanks, Inc. 18,700 467,500
Interpublic Group of Companies, Inc. 8,400 361,200
Lamar Advertising Company* 7,500 324,844
Omnicom Group, Inc. 5,000 445,313
True North Communications 12,000 528,000
Young & Rubicam, Inc. 11,000 629,063
APPAREL - 0.7%
Cintas Corporation 21,900 803,456
Quiksilver, Inc.* 10,500 163,406
BANK - 2.1%
City National Corporation 9,000 312,750
Community First Bankshares, Inc. 15,000 244,688
Investors Financial Services 16,000 635,000
North Fork Bancorporation 28,000 423,500
Northern Trust Corporation 11,200 728,700
State Street Corporation 6,100 646,981
BIOTECHNOLOGY - 4.6%
Amgen, Inc.* 5,000 351,250
Biogen, Inc.* 4,300 277,350
Human Genome Sciences, Inc.* 7,900 1,053,663
IDEC Pharmaceuticals Corporation* 6,000 703,875
Immunex Corporation* 16,200 800,888
Incyte Pharmaceuticals, Inc.* 6,000 493,125
Millennium Pharmaceuticals, Inc.* 12,000 1,342,500
PE Corp-Celera Genomics Group* 6,000 561,000
Protein Design Labs, Inc.* 6,000 989,719
BROADCASTING / CABLE TV - 5.0%
AMFM, Inc.* 7,000 483,000
Citadel Communications Corporation* 14,000 489,125
Clear Channel Communications* 5,499 412,425
Cox Communications, Inc.* 10,000 455,625
BROADCASTING / CABLE TV - 5.0% (Continued)
Emmis Communications Corporation* 15,000 620,625
Entercom Communications Corporation* 14,000 682,500
Hispanic Broadcasting Corporation* 9,200 304,750
Infinity Broadcasting Corporation* 22,781 830,083
Radio One, Inc. - Class A* 24,000 709,500
Regent Communications, Inc.* 39,500 339,453
Univision Communications, Inc.* 9,600 993,600
USA Networks, Inc.* 19,500 421,688
Westwood One, Inc.* 12,000 409,500
BUILDING MATERIALS - 0.4%
Dycom Industries, Inc.* 12,000 552,000
CHEMICAL - 1.1%
Ecolab, Inc. 20,000 781,250
Sigma-Aldrich Corporation 8,000 234,000
Valspar Corporation 15,800 533,250
COMPUTER & PERIPHERALS - 5.5%
Brocade Communications Systems* 3,500 642,195
Comverse Technology, Inc.* 13,500 1,255,500
Diebold, Inc. 9,500 264,813
EMC Corporation* 6,000 457,500
Entrust Technologies, Inc.* 8,000 662,000
Gateway, Inc.* 6,500 370,500
Microchip Technology, Inc.* 11,137 648,904
National Computer Systems, Inc. 9,500 467,875
Network Appliance, Inc.* 18,000 1,449,000
Synopsys, Inc.* 6,400 221,200
VERITAS Software Corporation* 10,750 1,214,918
Visual Networks, Inc.* 7,000 199,500
COMPUTER SOFTWARE & SERVICES - 14.5%
Adobe Systems, Inc. 8,000 1,040,000
Affiliated Computer Services, Inc.* 7,000 231,875
BARRA, Inc.* 7,000 346,938
</TABLE>
See Notes To Financial Statements
9
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------- ------ --------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES - 14.5% (Continued)
BEA Systems, Inc.* 12,000 $ 593,250
BMC Software, Inc.* 11,200 408,625
BISYS Group, Inc.* 10,500 645,750
Cadence Design Systems, Inc.* 11,000 224,125
Check Point Software Technologies Ltd.* 7,000 1,482,250
Choicepoint, Inc.* 12,500 551,563
Citrix Systems, Inc.* 14,000 265,125
CMGI, Inc.* 6,000 274,875
CNET, Inc.* 15,500 380,719
Concord Communications, Inc.* 5,000 199,375
Cybersource Corporation* 12,000 165,750
Doubleclick, Inc.* 5,000 191,679
DST Systems, Inc.* 5,600 426,300
Electronic Arts, Inc.* 6,500 474,094
E.piphany, Inc.* 2,500 267,969
FactSet Research Systems, Inc. 12,400 350,300
IMS Health, Inc. 31,000 558,000
Inktomi Corporation* 4,000 473,000
Intuit, Inc.* 15,600 645,450
Internet Security Systems, Inc.* 7,000 691,141
Keane, Inc.* 17,500 378,438
Lycos, Inc.* 7,000 378,000
Marchfirst, Inc.* 7,900 144,175
Mercury Interactive Corporation* 14,000 1,354,500
Micromuse, Inc.* 5,000 827,422
National Data Corporation 6,000 138,000
National Instruments Corporation* 9,500 414,438
Network Associates, Inc.* 8,974 182,845
Oracle Corporation* 7,000 588,438
Peregrine Systems, Inc.* 10,000 346,875
Phone.com, Inc. 5,000 325,625
Progress Software Corporation* 20,000 358,750
Psinet, Inc.* 16,000 402,000
SEI Investments Company 16,500 656,906
Shared Medical Systems Corporation 3,500 255,281
SunGard Data Systems, Inc.* 9,500 294,500
Symantec Corporation* 11,800 636,463
Verio, Inc.* 7,000 388,391
Vitria Technology, Inc.* 11,300 690,713
WebTrends Corporation* 10,400 402,350
Wind River Systems, Inc.* 16,000 606,000
DIVERSIFIED - 0.7%
Danaher Corporation 5,000 247,188
Roper Industries, Inc. 11,500 294,688
Viad Corporation 18,100 493,225
DRUG - 3.9%
Aurora Biosciences Corporation* 4,000 272,750
BioChem Pharma, Inc.* 12,500 307,813
Biomatrix, Inc.* 14,500 327,836
Cardinal Health, Inc. 6,187 457,838
Elan Corporation PLC-ADR* 10,400 503,750
Express Scripts, Inc.* 11,500 714,438
Gilead Sciences, Inc.* 5,500 391,188
MedImmune, Inc.* 15,000 1,110,000
QLT Phototherapeutics, Inc.* 8,000 618,500
Shire Pharmaceuticals Group PLC-ADR* 9,800 508,375
Watson Pharmaceuticals, Inc.* 5,600 301,000
DRUGSTORE - 0.4%
CVS Corporation 8,000 320,000
Duane Reade, Inc.* 9,500 244,625
ELECTRIC & GAS UTILITIES - 0.7%
AES Corporation* 15,000 684,375
Calpine Corporation* 4,000 263,000
ELECTRICAL EQUIPMENT - 1.4%
American Power Conversion* 15,500 632,594
Littlefuse, Inc.* 13,000 637,000
Molex, Inc. 9,276 324,660
Rayovac Corporation* 15,900 355,763
</TABLE>
See Notes To Financial Statements
10
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------- ------ --------------
<S> <C> <C>
ELECTRONICS - 6.2%
Flextronics International Ltd.* 8,000 $ 549,500
Jabil Circuit, Inc.* 11,000 545,875
Lam Research Corporation* 10,500 393,750
Macromedia* 8,000 773,500
Micrel, Inc.* 14,000 608,125
Sanmina Corporation* 10,800 923,400
Sawtek, Inc.* 7,000 402,938
SCI Systems, Inc.* 12,000 470,250
Symbol Technologies, Inc. 22,443 1,211,922
Technitrol, Inc. 11,500 1,114,063
Teradyne, Inc.* 9,200 680,800
Waters Corporation* 9,600 1,198,200
ENVIRONMENTAL - 0.1%
Republic Services, Inc.* 13,000 208,000
FINANCIAL SERVICES - 3.5%
Amvescap PLC 8,500 666,188
Capital One Financial Corporation 5,100 227,588
Concord EFS, Inc.* 21,500 559,000
Eaton Vance Corporation 12,200 564,250
Federated Investors 21,000 736,313
Franklin Resources, Inc. 19,300 586,238
Paychex, Inc. 15,188 637,875
Providian Financial Corporation 4,000 360,000
Waddell & Reed Financial, Inc. 20,250 664,453
FOOD PROCESSING - 0.4%
Tootsie Roll Industries, Inc. 16,249 568,715
FURNITURE / HOME FURNISHINGS - 0.3%
HON INDUSTRIES, Inc. 12,000 282,000
Leggett & Platt, Inc. 12,300 202,950
HOMEBUILDING - 0.2%
Lennar Corporation 12,600 255,150
HOTEL/GAMING - 0.5%
SFX Entertainment, Inc.* 15,000 679,688
INDUSTRIAL SERVICES - 2.9%
ACNielsen Corporation* 26,000 572,000
Apollo Group, Inc.* 18,750 525,000
DeVry, Inc.* 26,000 687,375
Equifax, Inc. 11,700 307,125
F.Y.I., Inc.* 17,000 572,688
Iron Mountain, Inc.* 10,000 340,000
ITT Educational Services, Inc.* 12,000 210,750
Manpower, Inc. 9,000 288,000
Quintiles Transnational Corporation* 4,600 64,975
Robert Half International, Inc.* 21,500 612,750
INSURANCE - 1.2%
Ambac Financial Group, Inc. 9,700 531,681
Mutual Risk Management Ltd. 21,132 365,848
Radian Group, Inc. 9,500 491,625
XL Capital Ltd. 5,500 297,688
MACHINERY - 0.9%
Cognex Corporation* 9,500 491,625
Donaldson Company, Inc. 16,600 327,850
IDEX Corporation 9,500 299,844
Parker-Hannifin Corporation 6,000 205,500
MEDICAL SERVICES - 0.9%
Lincare Holdings, Inc.* 9,600 236,400
Quest Diagnostics, Inc.* 11,500 859,625
Renal Care Group, Inc.* 10,500 256,758
MEDICAL SUPPLIES - 3.0%
Allergan, Inc. 6,000 447,000
ArthroCare Corporation* 6,000 319,500
Biomet, Inc. 13,200 507,375
Boston Scientific Corporation* 7,500 164,531
</TABLE>
See Notes To Financial Statements
11
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------- ------ --------------
<S> <C> <C>
MEDICAL SUPPLIES - 3.0% (Continued)
Guidant Corporation 7,000 $ 346,500
Medical Manager Corporation* 4,500 153,281
Medtronic, Inc. 8,000 398,500
Redmed, Inc.* 21,000 561,750
Stryker Corporation 10,000 437,500
Sybron International Corporation* 19,500 386,344
Wesley Jessen Visioncare* 15,500 582,219
METAL FABRICATING - 0.1%
Lincoln Electric Holdings, Inc. 12,700 180,975
OFFICE EQUIPMENT & SUPPLIES - 0.3%
Avery Dennison Corporation 6,700 449,738
OILFIELD SERVICES - 2.5%
BJ Services Company* 13,500 843,750
Cooper Cameron Corporation* 10,400 686,400
Insituform Technologies-Class A* 16,500 447,563
Smith International, Inc.* 11,800 859,188
Veritas DGC, Inc.* 13,000 338,000
Weatherford International, Inc.* 9,835 391,556
PACKAGING & CONTAINER - 0.4%
Sealed Air Corporation* 9,900 518,513
PETROLEUM - 0.5%
Apache Corporation 8,000 470,500
Devon Energy Corporation 4,500 252,844
PRECISION INSTRUMENT - 1.3%
Cuno, Inc.* 15,500 358,438
Dionex Corporation* 8,500 227,375
KLA-Tencor Corporation* 9,600 562,200
PE Corp-PE Biosystems Group 10,000 658,594
PRINTING - 0.5%
Valassis Communications, Inc.* 17,000 648,125
PUBLISHING - 0.2%
Meredith Corporation 10,000 337,500
RAILROAD - 0.4%
Kansas City Southern Ind., Inc. 6,000 532,125
REAL ESTATE INVESTMENT MANAGEMENT - 0.6%
Jones Lang LaSalle, Inc.* 10,800 144,450
Security Capital Group, Inc. - Class B* 33,300 566,100
Trammell Crow Company* 20,000 215,000
RECREATION - 0.7%
Carnival Corporation 9,000 175,500
Harley-Davidson, Inc. 16,000 616,000
Premier Parks, Inc.* 11,000 250,250
RESTAURANT - 0.4%
Starbucks Corporation* 16,200 618,638
RETAIL STORE - 5.6%
Bed Bath & Beyond, Inc.* 14,000 507,500
BJ's Wholesale Club, Inc.* 11,000 363,000
CDW Computer Centers, Inc.* 10,000 625,000
Circuit City Stores, Inc. 8,000 266,000
Dollar General Corporation 35,926 700,562
Dollar Tree Stores, Inc.* 17,250 682,453
Family Dollar Stores 26,000 508,625
Harcourt General, Inc. 7,500 407,813
Kohl's Corporation* 6,600 367,125
Lands' End, Inc.* 15,700 523,988
Ross Stores, Inc. 29,500 503,344
Staples, Inc.* 10,500 161,438
</TABLE>
See Notes To Financial Statements
12
<PAGE>
ADVANCE CAPITAL I, INC. - EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK AND MARKET
REPURCHASE AGREEMENT SHARES VALUE
--------------------------------------------- ------ --------------
<S> <C> <C>
RETAIL STORE - 5.6% (Continued)
The Men's Wearhouse, Inc.* 9,225 $ 205,833
Tiffany & Company 14,000 945,000
TJX Companies, Inc. 28,700 538,125
Williams-Sonoma, Inc.* 15,000 486,563
Zale Corporation* 7,000 255,500
SECURITIES BROKERAGE - 1.8%
Charles Schwab Corporation 37,011 1,184,352
Investment Technology Group, Inc. 13,444 531,038
Legg Mason, Inc. 13,000 650,000
Raymond James Financial, Inc. 10,125 227,813
SEMICONDUCTOR - 12.1%
Altera Corporation* 13,600 1,386,350
Analog Devices, Inc.* 17,000 1,292,000
Applied Materials, Inc.* 9,000 815,625
Applied Micro Circuits Corporation* 12,000 1,185,000
Broadcom Corporation* 4,000 875,750
Burr-Brown Corporation* 12,000 1,040,250
Dallas Semiconductor Corporation 15,000 611,250
Lattice Semiconductor Corporation* 12,000 829,500
Linear Technology Corporation 18,000 1,150,875
Maxim Integrated Products, Inc.* 18,000 1,222,875
National Semiconductor Corporation* 9,500 560,500
PMC-Sierra, Inc.* 9,000 1,599,188
Qlogic Corporation* 6,000 396,375
SDL, Inc.* 3,400 969,638
Semtech Corporation* 7,000 535,391
Vitesse Semiconductor Corporation* 15,000 1,103,438
Xilinx, Inc.* 21,200 1,750,325
TELECOMMUNICATIONS EQUIPMENT - 4.0%
ADC Telecommunications, Inc.* 11,000 922,625
American Tower Corporation 14,000 583,625
E-Tek Dynamics, Inc.* 4,500 1,187,156
Harmonic, Inc.* 5,000 123,750
JDS Uniphase Corporation* 10,000 1,198,750
Pinnacle Holdings, Inc.* 10,000 540,000
RF Micro Devices, Inc.* 4,000 350,500
Scientific-Atlanta, Inc. 7,000 521,500
Tellabs, Inc.* 3,500 239,531
TELECOMMUNICATIONS SERVICE - 3.6%
Allegiance Telecom, Inc.* 7,500 480,000
Crown Castle International Corporation* 16,000 584,000
Intermedia Communications, Inc.* 11,500 342,125
McleodUSA, Inc.* 39,000 806,813
Nextel Communications, Inc.* 6,000 367,125
NEXTLINK Communications, Inc.* 20,000 758,750
NTL, Inc.* 3,906 233,872
United States Cellular Corporation* 4,500 283,500
Viatel, Inc.* 9,000 257,063
Western Wireless Corporation* 10,500 572,250
Winstar Communications, Inc.* 9,750 330,281
TOYS - 0.3%
Mattel, Inc. 27,625 364,305
TRANSPORT SERVICES - 0.8%
C.H. Robinson Worldwide, Inc. 8,000 396,000
Expeditors International of Washington, Inc. 17,200 817,000
WATER UTILITY - 0.1%
Azurix Corporation* 28,000 196,000
---------------
TOTAL COMMON STOCK - 99.6%
(Cost $77,561,679) 142,325,678
REPURCHASE AGREEMENT - 0.2%
Fifth Third Bank 2 Party Repurchase
Agreement, 6.62%, due 07/03/00 295,114
---------------
TOTAL INVESTMENTS IN SECURITIES - 99.8%
(Cost $77,856,793) $ 142,620,792
===============
</TABLE>
*Securities are non-income producing
See Notes To Financial Statements
13
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
---------------------------------------- ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 1.7%
Lamar Advertising Company B 9.625 12/01/06 $ 500,000 $ 503,504
News Corporation Ltd. BB+ 8.750 02/15/06 450,000 433,044
AEROSPACE / DEFENSE - 0.9%
Lockheed Martin Corporation BBB- 7.650 05/01/16 500,000 462,271
AIR TRANSPORT - 0.3%
Northwest Airlines, Inc. BB 8.700 03/15/07 200,000 183,152
AUTO PARTS - 0.7%
Federal-Mogul Corporation BB 7.750 07/01/06 500,000 370,430
AUTO & TRUCK - 4.6%
ArvinMeritor, Inc. BBB 6.800 02/15/09 500,000 433,355
Ford Motor Company A 6.500 08/01/18 500,000 433,009
General Motors Corporation A 7.700 04/15/16 750,000 737,218
Lear Corporation BB+ 8.110 05/15/09 500,000 452,349
TRW, Inc. BBB 6.250 01/15/10 500,000 434,145
BANK - 7.6%
Banc One Corporation A- 7.750 07/15/25 750,000 704,094
Bank of America Corporation A 7.800 09/15/16 500,000 491,989
Capital One Financial Corporation BB+ 7.250 05/01/06 500,000 458,526
Citicorp, Inc. A+ 7.250 10/15/11 500,000 480,308
First Union Corporation A- 6.400 01/01/08 500,000 452,301
Morgan, J.P. & Company A+ 6.250 01/15/09 650,000 585,373
National City Corporation A- 6.875 05/15/19 500,000 433,740
Swiss Bank Corporation-NY AA 7.375 07/15/15 500,000 483,320
BEVERAGE - 0.9%
Anheuser-Busch Companies, Inc. A+ 7.125 07/01/17 500,000 470,101
BROADCASTING / CABLE TV - 5.6%
Chancellor Media Corporation B+ 8.000 11/01/08 500,000 502,702
Charter Communications Holdings LLC B+ 8.625 04/01/09 500,000 440,120
Comcast Corporation BBB 7.625 04/01/08 700,000 685,132
Comcast Corporation BBB 8.250 02/15/08 400,000 399,599
CSC Holdings, Inc. BB- 9.875 02/15/13 500,000 511,360
Time Warner, Inc. BBB 7.250 10/15/17 500,000 452,964
BUILDING MATERIALS - 0.9%
American Standard, Inc. BB- 7.375 04/15/05 500,000 472,892
</TABLE>
See Notes To Financial Statements
14
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
---------------------------------------- ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
CHEMICAL - 0.8%
Air Products and Chemicals, Inc. A 8.750 04/15/21 $ 250,000 $ 257,185
Witco Corporation BBB 7.750 04/01/23 200,000 177,558
COMPUTER SOFTWARE & SERVICES - 1.7%
Computer Associates International, Inc. BBB+ 6.500 04/15/08 500,000 456,308
Oracle Corporation A- 6.910 02/15/07 500,000 475,310
COMPUTER & PERIPHERALS - 1.8%
Dell Computer Corporation BBB+ 6.550 04/15/08 500,000 459,047
Unisys Corporation BB+ 11.750 10/15/04 500,000 535,847
DIVERSIFIED - 3.2%
Mark IV Industries, Inc. BB- 7.500 09/01/07 500,000 379,097
Norsk Hydro ASA A 9.000 04/15/12 750,000 799,651
Service Corporation International BB+ 7.700 04/15/09 200,000 104,000
Tyco International Group SA A- 6.125 01/15/09 500,000 441,469
ELECTRIC & GAS UTILITIES - 11.5%
Calpine Corporation BB+ 7.625 04/15/06 550,000 536,424
Carolina Power & Light Company A 8.200 07/01/22 500,000 483,344
Cincinnati G&E - MBIA AAA 7.200 10/01/23 1,000,000 900,986
Duke Energy Corporation A+ 7.375 03/01/10 500,000 491,579
Duquesne Light Company BBB+ 7.550 06/15/25 250,000 224,437
Florida Power Corporation AA- 6.875 02/01/08 500,000 438,104
Hydro-Quebec AAA 8.400 01/15/22 300,000 339,930
Long Island Lighting Company A- 8.200 03/15/23 250,000 240,091
Monongahela Power A+ 8.375 07/01/22 500,000 491,678
Ontario Hydro AA- 7.450 03/31/13 750,000 752,726
PG&E Corporation AA- 8.375 05/01/25 500,000 509,310
Potomac Edison Company A+ 7.750 02/01/23 95,000 88,828
Potomac Electric Power Company A 7.375 09/15/25 500,000 464,458
Texas Utilities Company BBB+ 7.875 03/01/23 250,000 230,350
ELECTRONICS - 0.9%
Koninklijke Philips Electronics N.V. BBB+ 7.250 08/15/13 500,000 468,821
ENTERTAINMENT - 0.8%
Viacom, Inc. BBB+ 7.500 07/15/23 500,000 450,229
FINANCIAL SERVICES - 5.1%
Bear Stearns Company, Inc. A 7.000 07/06/18 250,000 222,038
Fairfax Financial Holdings BBB+ 8.250 10/01/15 250,000 205,625
General Electric Capital Corporation AAA 8.000 08/20/14 250,000 245,246
</TABLE>
See Notes To Financial Statements
15
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
---------------------------------------- ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 5.1% (Continued)
Goldman Sachs Group, Inc. A+ 6.650 05/15/09 $ 750,000 $ 685,277
Household Finance Corporation A 6.375 08/01/10 500,000 442,720
Sears Roebuck Acceptance Corporation A- 6.875 10/15/17 500,000 429,572
Washington Mutual, Inc. BBB 8.250 04/01/10 500,000 497,386
FOOD PROCESSING - 1.7%
Archer Daniels Midland Company A+ 7.125 03/01/13 500,000 484,595
Nabisco, Inc. BBB 7.050 07/15/07 500,000 446,253
HOME BUILDING - 2.0%
Kaufman & Broad Home Corporation BB+ 7.750 10/15/04 500,000 461,652
MDC Holdings, Inc. BB 8.375 02/01/08 500,000 442,904
Ryland Group, Inc. B+ 9.625 06/01/04 200,000 190,991
HOTEL / GAMING - 4.5%
Boyd Gaming Corporation B+ 9.500 07/15/07 600,000 574,981
Harrah's Operating Company, Inc. BB+ 7.875 12/15/05 500,000 469,393
HMH Properties, Inc. BB 8.450 12/01/08 500,000 464,201
Mirage Resorts, Inc. BBB- 6.750 08/01/07 500,000 449,888
Park Place Entertainment Corporation BB+ 7.875 12/15/05 525,000 488,048
INDUSTRIAL SERVICES - 0.9%
Coinmach Corporation B 11.750 11/15/05 500,000 476,250
INSURANCE - 2.3%
Ace INA Holdings A- 8.300 08/15/06 250,000 251,875
Aetna Services, Inc. A 7.125 08/15/06 500,000 468,061
Allstate Corporation A+ 7.500 06/15/13 250,000 233,651
CIGNA Corporation A 8.250 01/01/07 100,000 101,551
CNA Financial Corporation BBB 6.950 01/15/18 250,000 198,147
MACHINERY - 1.2%
Caterpillar, Inc. A+ 9.000 04/15/06 100,000 105,970
Deere & Company A+ 8.950 06/15/19 500,000 547,500
MEDICAL SERVICES - 0.9%
Tenet Healthcare Corporation BB+ 8.000 01/15/05 500,000 476,539
NATURAL GAS - 3.1%
Columbia Energy Group BBB+ 7.320 11/28/10 500,000 457,047
Enron Corporation A 7.750 04/15/23 250,000 233,005
Louis Dreyfus Natural Gas Corporation BB+ 9.250 06/15/04 500,000 496,947
Williams Cos., Inc. BBB- 7.625 07/15/19 500,000 479,446
</TABLE>
See Notes To Financial Statements
16
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
---------------------------------------- ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
NEWSPAPER - 1.0%
Hollinger International, Inc. BB 8.625 03/15/05 $ 500,000 $ 489,994
Knight-Ridder, Inc. A 9.875 04/15/09 50,000 57,826
OILFIELD SERVICES - 3.6%
Noble Drilling Corporation A- 7.500 03/15/19 500,000 462,211
Offshore Logistics, Inc. BB 7.875 01/15/08 550,000 484,878
Parker Drilling Company B+ 9.750 11/15/06 500,000 482,870
Pride International, Inc. BB 9.375 05/01/07 500,000 500,824
PACKAGING & CONTAINERS - 0.7%
Owens-Illinois, Inc. BB+ 8.100 05/15/07 400,000 373,383
PAPER & FOREST PRODUCTS - 0.8%
Weyerhaeuser Company A 6.950 08/01/17 500,000 443,847
PETROLEUM - 2.9%
Kerr-McGee Corporation BBB 7.000 11/01/11 500,000 467,078
Louisiana Land & Exploration Company A- 7.650 12/01/23 200,000 188,933
Ocean Energy, Inc. BB+ 8.875 07/15/07 250,000 247,711
Phillips Petroleum Company BBB 6.650 07/15/18 750,000 654,167
RAILROAD - 0.7%
Burlington Northern Santa Fe BBB+ 8.750 02/25/22 250,000 263,269
Missouri Pacific Railroad Company A- 9.400 12/15/00 100,000 101,035
RECREATION - 0.9%
Speedway Motorsports, Inc. B+ 8.500 08/15/07 500,000 465,000
RENTAL AUTO / EQUIPMENT - 0.9%
Hertz Corporation A- 6.625 05/15/08 500,000 465,550
RETAIL STORE - 1.0%
Michaels Stores, Inc. BB- 10.875 06/15/06 500,000 523,750
SECURITIES BROKERAGE - 3.4%
Lehman Brothers Holdings, Inc. A 8.500 08/01/15 500,000 500,145
Merrill Lynch & Company, Inc. AA- 6.875 11/15/18 1,000,000 880,350
Morgan Stanley Dean Witter AA 7.250 10/15/23 500,000 435,848
SEMICONDUCTOR - 0.8%
Applied Materials, Inc. A- 7.125 10/15/17 500,000 455,336
</TABLE>
See Notes To Financial Statements
17
<PAGE>
ADVANCE CAPITAL I, INC. - BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
FIXED INCOME SECURITIES AND CREDIT PRINCIPAL MARKET
REPURCHASE AGREEMENT RATING COUPON MATURITY AMOUNT VALUE
---------------------------------------- ------ ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C>
STEEL - 0.9%
AK Steel Corporation BB 9.125 12/15/06 $ 500,000 $ 480,378
TELECOMMUNICATIONS SERVICE - 10.0%
AT&T Corporation AA- 8.125 07/15/24 750,000 741,319
Bell Canada A+ 9.500 10/15/10 500,000 566,071
Global Crossings Ltd. BB 9.625 05/15/08 750,000 728,822
GTE Corporation A+ 8.750 11/01/21 500,000 526,343
MasTec, Inc. BBB- 7.750 02/01/08 750,000 685,495
New York Telephone Company A+ 7.250 02/15/24 500,000 449,166
Rogers Cantel, Inc. BB- 8.800 10/01/07 500,000 500,000
SBC Communications Capital Corporation AA- 7.000 07/01/15 500,000 470,736
Sprint Capital Corporation BBB+ 6.900 05/01/19 750,000 666,632
TOBACCO - 0.2%
Philip Morris Companies, Inc. A 6.375 02/01/06 100,000 89,528
TOILETRIES/COSMETICS - 0.8%
Kimberly-Clark Corporation AA 7.634 08/15/23 500,000 456,560
TRANSPORT SERVICES - 0.8%
Stagecoach Holdings PLC BBB 8.625 11/15/09 500,000 413,435
TRANSPORTATION - 1.5%
Gulfmark Offshore, Inc. BB- 8.750 06/01/08 500,000 457,032
Sea Containers BB- 7.875 02/15/08 500,000 325,000
U.S. GOVERNMENT - 0.3%
U.S. Treasury - Bond 7.875 02/15/21 150,000 178,195
------------
TOTAL FIXED-INCOME SECURITIES - 96.8%
(Cost $54,160,531) 52,069,241
REPURCHASE AGREEMENT - 1.7%
Fifth Third Bank 2 Party Repurchase
Agreement, 6.62%, 07/03/00 905,777
------------
TOTAL INVESTMENTS IN SECURITIES - 98.5%
(Cost $55,066,308) $52,975,018
============
</TABLE>
See Notes To Financial Statements
18
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
ADVERTISING - 0.5%
Catalina Marketing Corporation* 2,100 $ 214,200
Harte-Hanks, Inc. 3,000 75,000
Interpublic Group of Companies, Inc. 2,800 120,400
Lamar Advertising Company* 2,200 95,288
Omnicom Group, Inc. 1,500 133,594
True North Communications 3,000 132,000
Young & Rubicam, Inc. 3,700 211,594
AEROSPACE / DEFENSE - 0.7%
Boeing Company 9,740 407,254
General Dynamics Corporation 5,700 297,825
Honeywell International, Inc. 5,500 185,969
Lockheed Martin Corporation 6,000 148,875
United Technologies Corporation 6,400 375,200
AIR TRANSPORT - 0.1%
Southwest Airlines 14,000 265,125
APPAREL - 0.2%
Cintas Corporation 5,850 214,622
Quiksilver, Inc.* 4,500 70,031
VF Corporation 6,100 145,256
AUTO PARTS - 0.1%
Dana Corporation 4,600 97,463
Genuine Parts Company 8,000 160,000
AUTO & TRUCK - 0.4%
Ford Motor Company 11,900 511,700
General Motors Corporation 5,400 313,200
BANK - 3.5%
Amsouth Bancorporation 8,232 129,654
Banc One Corporation 15,260 405,344
Bank of America Corporation 15,613 675,262
Bank of New York Company, Inc. 11,600 539,400
Chase Manhattan Corporation 14,520 668,828
City National Corporation 3,100 107,725
Community First Bankshares, Inc. 4,000 65,250
Fifth Third Bancorp 5,000 316,250
First Tennessee National Corporation 11,600 194,300
First Union Corporation 9,000 225,000
Firstar Corporation 10,500 221,156
Fleet Boston Financial Corporation 9,016 306,544
Investors Financial Services 1,000 39,688
J.P. Morgan & Company 1,500 165,188
Mellon Bank Corporation 19,800 721,463
National City Corporation 6,500 110,500
North Fork Bancorporation 10,000 151,250
Northern Trust Corporation 3,400 221,213
PNC Bank Corporation 4,000 187,500
State Street Corporation 2,400 254,550
U.S. Bancorp 6,900 132,825
Wachovia Corporation 2,500 135,625
Wells Fargo Company 11,130 431,288
Wilmington Trust Corporation 3,500 149,625
BEVERAGE - 0.9%
Anheuser-Busch Companies, Inc. 7,400 552,688
Brown-Forman Corporation 4,000 215,000
Diageo PLC-ADR 4,800 170,700
PepsiCo, Inc. 15,500 688,781
BIOTECHNOLOGY - 1.1%
Amgen, Inc.* 1,500 105,375
Biogen, Inc.* 1,500 96,750
Human Genome Sciences, Inc.* 2,400 320,100
IDEC Pharmaceuticals Corporation* 2,000 234,625
Immunex Corporation* 6,300 311,456
Incyte Pharmaceuticals, Inc.* 2,000 164,375
Millennium Pharmaceuticals, Inc.* 3,000 335,625
PE Corp-Celera Genomics Group* 2,000 187,000
Protein Design Labs, Inc.* 2,000 329,906
</TABLE>
See Notes To Financial Statements
19
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
BROADCASTING / CABLE TV - 1.5%
AMFM, Inc.* 2,400 $ 165,600
Citadel Communications Corporation* 3,000 104,813
Clear Channel Communications* 2,000 150,000
Cox Communications, Inc.* 3,000 136,688
Emmis Communications Corporation* 5,200 215,150
Entercom Communications Corporation* 3,300 160,875
Hispanic Broadcasting Corporation* 3,200 106,000
Infinity Broadcasting Corporation* 8,437 307,423
Radio One, Inc. - Class A* 3,900 115,294
Regent Communications, Inc.* 5,000 42,969
The Walt Disney Company 13,000 507,000
Time Warner, Inc. 2,000 152,000
Univision Communications, Inc.* 3,300 341,550
USA Networks, Inc.* 5,600 121,100
Westwood One, Inc.* 4,400 150,150
BUILDING MATERIALS - 0.3%
Dycom Industries, Inc.* 3,750 172,500
Martin Marietta Materials 5,000 202,188
Masco Corporation 7,000 126,438
CHEMICAL - 1.3%
Cytec Industries, Inc.* 7,500 185,156
Dow Chemical 14,100 425,644
duPont, E.I. de Nemours & Company 11,000 481,250
Ecolab, Inc. 5,300 207,031
Imperial Chemical Industries Plc 8,000 246,500
Rohm & Haas Company 11,000 379,500
Sigma-Aldrich Corporation 2,600 76,050
Union Carbide Corporation 2,100 103,950
Valspar Corporation 3,600 121,500
WD-40 Company 8,600 178,450
COMPUTER & PERIPHERALS - 1.7%
Brocade Communications Systems* 500 91,742
Comverse Technology, Inc.* 2,400 223,200
Diebold, Inc. 2,400 66,900
EMC Corporation* 2,600 198,250
Entrust Technologies, Inc.* 2,500 206,875
Gateway, Inc.* 1,400 79,800
Hewlett-Packard Company 6,100 758,688
International Business Machines Corporation 4,500 493,031
Microchip Technology, Inc.* 2,250 131,098
National Computer Systems, Inc. 2,900 142,825
Network Appliance, Inc.* 5,600 450,800
Synopsys, Inc.* 2,000 69,125
VERITAS Software Corporation* 3,000 339,047
Visual Networks, Inc.* 1,500 42,750
COMPUTER SOFTWARE & SERVICES - 3.9%
Adobe Systems, Inc. 2,400 312,000
Affiliated Computer Services, Inc.* 2,000 66,250
Automatic Data Processing, Inc. 8,000 428,500
BARRA, Inc.* 2,500 123,906
BEA Systems, Inc.* 4,000 197,750
BISYS Group, Inc.* 2,500 153,750
BMC Software, Inc.* 4,000 145,938
Cadence Design Systems, Inc.* 3,700 75,388
Check Point Software Technologies Ltd.* 2,000 423,500
Choicepoint, Inc.* 4,000 176,500
Citrix Systems, Inc.* 5,200 98,475
CMGI, Inc.* 1,900 87,044
CNET, Inc.* 3,500 85,969
Computer Associates International, Inc. 8,000 409,500
Concord Communications, Inc.* 1,500 59,813
Cybersource Corporation* 3,700 51,106
Doubleclick, Inc.* 500 19,063
DST Systems, Inc.* 2,000 152,250
Electronic Arts, Inc.* 2,000 145,875
E.piphany, Inc.* 500 53,594
FactSet Research Systems, Inc. 4,000 113,000
First Data Corporation 7,500 372,188
IMS Health, Inc. 7,200 129,600
Inktomi Corporation* 500 59,125
</TABLE>
See Notes To Financial Statements
20
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES - 3.9% (Continued)
Intuit, Inc.* 5,100 $ 211,013
Internet Security Systems, Inc.* 2,400 236,963
Keane, Inc.* 4,000 86,500
Lycos, Inc.* 2,300 124,200
Marchfirst, Inc.* 2,700 49,275
Mercury Interactive Corporation* 4,000 387,000
Micromuse, Inc.* 1,000 165,484
Microsoft Corporation* 3,500 280,000
National Data Corporation 800 18,400
National Instruments Corporation* 3,200 139,600
Network Associates, Inc.* 2,800 57,050
Oracle Corporation* 2,000 168,125
Peregrine Systems, Inc.* 3,200 111,000
Phone.com, Inc. 500 32,563
Progress Software Corporation* 6,600 118,388
Psinet, Inc.* 4,400 110,550
SEI Investments Company 6,300 250,819
Shared Medical Systems Corporation 900 65,644
SunGard Data Systems, Inc.* 3,000 93,000
Symantec Corporation* 4,000 215,750
Verio, Inc.* 2,000 110,969
Vitria Technology, Inc.* 1,000 61,125
WebTrends Corporation* 3,600 139,275
Wind River Systems, Inc.* 3,000 113,625
DIVERSIFIED - 1.6%
Corning, Inc. 3,500 943,031
Crane Company 10,500 255,281
Danaher Corporation 1,500 74,156
Eaton Corporation 2,000 134,000
Illinois Tool Works 6,500 370,500
Minnesota Mining & Manufacturing 6,300 520,931
PPG Industries, Inc. 7,100 314,619
Roper Industries, Inc. 3,500 89,688
Textron, Inc. 5,000 271,563
Viad Corporation 4,400 119,900
DRUG - 4.0%
Abbott Laboratories 16,375 726,641
American Home Products Corporation 16,800 987,000
Astrazeneca Plc 5,500 255,750
Aurora Biosciences Corporation* 500 34,094
BioChem Pharma, Inc.* 4,000 98,500
Biomatrix, Inc.* 2,000 45,219
Bristol-Myers Squibb Company 16,000 932,000
Cardinal Health, Inc. 2,700 199,800
Elan Corporation PLC-ADR* 3,000 145,313
Express Scripts, Inc.* 2,000 124,250
Gilead Sciences, Inc.* 1,700 120,913
Glaxo Wellcome Plc 5,000 289,063
MedImmune, Inc.* 5,100 377,400
Merck & Company, Inc. 12,000 912,000
Pfizer, Inc. 15,125 726,000
Pharmacia Corporation 10,115 522,819
QLT Phototherapeutics, Inc.* 2,000 154,625
Schering-Plough Corporation 13,500 683,438
Shire Pharmaceuticals Group PLC-ADR* 3,000 155,625
Watson Pharmaceuticals, Inc.* 1,600 86,000
DRUGSTORE - 0.1%
CVS Corporation 1,600 64,000
Duane Reade, Inc.* 3,000 77,250
ELECTRIC & GAS UTILITIES - 2.9%
AES Corporation* 5,600 255,500
Calpine Corporation* 600 39,450
Carolina Power & Light Company 4,700 150,106
Consolidated Edison Company of N.Y. 5,400 159,975
Constellation Energy Group 5,700 185,606
Dominion Resources, Inc.* 8,000 343,000
Duke Energy Corporation 8,935 507,061
Edison International 10,500 215,250
Entergy Corporation 12,500 342,188
FirstEnergy Corporation 4,500 106,031
</TABLE>
See Notes To Financial Statements
21
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
ELECTRIC & GAS UTILITIES - 2.9% (Continued)
Florida Progress Corporation 7,500 $ 351,563
GPU, Inc. 3,600 97,425
Hawaiian Electric Industries, Inc. 9,100 298,594
New Century Energies, Inc. 4,700 141,000
Peco Energy Company 8,500 347,969
PG&E Corporation 6,000 147,750
Reliant Energy, Inc. 12,800 380,800
RGS Energy Group, Inc. 11,000 244,750
Southern Company 14,000 326,375
TECO Energy, Inc. 16,200 325,013
Texas Utilities Company 9,300 274,350
Unicom Corporation 7,000 270,813
ELECTRICAL EQUIPMENT - 1.3%
American Power Conversion* 4,500 183,656
Emerson Electric Company 10,500 633,938
General Electric Company 22,500 1,164,375
Littlefuse, Inc.* 3,500 171,500
Molex, Inc. 3,660 128,100
Rayovac Corporation* 4,300 96,213
ELECTRONICS - 1.8%
Agilent Technologies, Inc.* 2,326 173,287
Flextronics International Ltd.* 2,400 164,850
Jabil Circuit, Inc.* 4,000 198,500
Lam Research Corporation* 3,000 112,500
Macromedia* 2,000 193,375
Micrel, Inc.* 4,600 199,813
Millipore Corporation 6,000 452,250
Sanmina Corporation* 3,800 324,900
Sawtek, Inc.* 2,000 115,125
SCI Systems, Inc.* 4,000 156,750
Symbol Technologies, Inc. 10,125 546,750
Technitrol, Inc. 2,500 242,188
Teradyne, Inc.* 3,000 222,000
Waters Corporation* 3,000 374,438
ENVIRONMENTAL - 0.0%
Republic Services, Inc.* 3,000 48,000
FINANCIAL SERVICES - 3.2%
American Express Company 15,000 781,875
Amvescap PLC 2,500 195,938
Associates First Capital Corporation 5,334 119,015
Capital One Financial Corporation 1,500 66,938
Citigroup, Inc. 16,600 1,000,150
Concord EFS, Inc.* 4,500 117,000
Dun & Bradstreet Corporation 11,700 334,913
Eaton Vance Corporation 3,500 161,875
Fannie Mae 17,300 902,844
Federated Investors 7,000 245,438
Franklin Resources, Inc. 3,800 115,425
Freddie Mac 12,500 506,250
Morgan Stanley Dean Witter & Company 8,000 666,000
Paychex, Inc. 7,593 318,906
Providian Financial Corporation 1,400 126,000
Servicemaster Company 15,000 170,625
Waddell & Reed Financial, Inc. 7,500 246,094
FOOD PROCESSING - 1.1%
Campbell Soup Company 5,000 145,625
ConAgra, Inc. 5,622 107,169
General Mills, Inc. 14,800 566,100
Heinz (H.J.) Company 6,000 262,500
Hershey Foods Corporation 2,800 135,800
Kellogg Company 3,000 89,250
Quaker Oats Company 2,000 150,250
Ralston Purina Group 6,000 119,625
Sara Lee Corporation 9,000 173,813
Tootsie Roll Industries, Inc. 4,451 155,785
Unilever N.V. 4,000 180,500
FOOD WHOLESALERS - 0.2%
Bestfoods 5,000 346,250
</TABLE>
See Notes To Financial Statements
22
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
FOREIGN TELECOMMUNICATIONS - 0.2%
BCE, Inc. 4,400 $ 104,775
Reuters Group PLC-ADR 2,733 273,129
FURNITURE / HOME FURNISHINGS - 0.1%
HON INDUSTRIES, Inc. 3,300 77,550
Leggett & Platt, Inc. 4,100 67,650
GROCERY - 0.2%
Albertson's, Inc. 8,900 295,925
HOMEBUILDING - 0.0%
Lennar Corporation 3,200 64,800
HOTEL/GAMING - 0.0%
SFX Entertainment, Inc.* 2,000 90,625
HOUSEHOLD PRODUCTS - 0.3%
Clorox Company 5,500 246,469
Newell Rubbermaid, Inc.* 7,000 180,250
Whirlpool Corporation 3,500 163,188
INDUSTRIAL SERVICES - 0.6%
ACNielsen Corporation* 4,800 105,600
Apollo Group, Inc.* 6,050 169,400
DeVry, Inc.* 6,200 163,913
Equifax, Inc. 4,000 105,000
F.Y.I., Inc.* 3,000 101,063
Iron Mountain, Inc.* 3,500 119,000
ITT Educational Services, Inc.* 2,200 38,638
Manpower, Inc. 3,000 96,000
Quintiles Transnational Corporation* 1,300 18,363
Robert Half International, Inc.* 4,500 128,250
INSURANCE - 1.8%
AFLAC, Inc. 5,800 266,438
Ambac Financial Group, Inc. 3,200 175,400
American General Corporation 8,500 518,500
American International Group, Inc. 5,000 587,500
Hartford Financial Services Group, Inc. 4,000 223,750
Lincoln National Corporation 5,000 180,625
Marsh & McLennan Companies, Inc. 6,600 689,288
MBIA, Inc. 5,500 265,031
MGIC Investment Corporation 4,800 218,400
Mutual Risk Management Ltd. 6,666 115,405
Radian Group, Inc. 2,200 113,850
XL Capital Ltd. 1,900 102,838
MACHINERY - 0.5%
Caterpillar, Inc. 3,600 121,950
Cognex Corporation* 3,100 160,425
Deere & Company 4,200 155,400
Donaldson Company, Inc. 4,800 94,800
Dover Corporation 7,000 283,938
IDEX Corporation 3,000 94,688
Parker-Hannifin Corporation 1,575 53,944
MEDICAL SERVICES - 0.2%
Lincare Holdings, Inc.* 3,000 73,875
Quest Diagnostics, Inc.* 3,500 261,625
Renal Care Group, Inc.* 3,000 73,359
MEDICAL SUPPLIES - 1.4%
Allergan, Inc. 1,900 141,550
ArthroCare Corporation* 1,400 74,550
Baxter International, Inc. 8,000 562,500
Becton Dickinson & Company 6,500 186,469
Biomet, Inc. 3,000 115,313
Boston Scientific Corporation* 2,800 61,425
Guidant Corporation 2,500 123,750
Hillenbrand Industries 5,500 171,875
Johnson & Johnson 5,018 511,209
Medical Manager Corporation* 1,600 54,500
Medtronic, Inc. 2,000 99,625
Redmed, Inc.* 5,600 149,800
</TABLE>
See Notes To Financial Statements
23
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
MEDICAL SUPPLIES - 1.4% (Continued)
Stryker Corporation 3,200 $ 140,000
Sybron International Corporation* 4,000 79,250
Wesley Jessen Visioncare* 2,500 93,906
METAL FABRICATING - 0.4%
Alcoa, Inc. 17,000 493,000
Kaydon Corporation 7,500 157,500
Lincoln Electric Holdings, Inc. 4,500 64,125
NATURAL GAS - 0.6%
Enron Corporation 10,800 712,125
The Williams Companies, Inc. 11,000 458,563
NEWSPAPER - 0.1%
Gannett Company, Inc. 3,800 227,288
OFFICE EQUIPMENT & SUPPLIES - 0.4%
Avery Dennison Corporation 2,200 147,675
Pitney Bowes, Inc. 14,000 560,000
OILFIELD SERVICES - 2.4%
Baker Hughes, Inc. 16,000 518,000
BJ Services Company* 3,900 243,750
Cooper Cameron Corporation* 3,400 224,400
Exxon Mobil Corporation 25,801 2,025,379
Halliburton Company 8,000 377,500
Insituform Technologies-Class A* 3,500 94,938
Schlumberger Ltd. 6,680 498,495
Smith International, Inc.* 3,800 276,688
Veritas DGC, Inc.* 3,500 91,000
Weatherford International, Inc.* 2,800 111,475
PACKAGING & CONTAINER - 0.1%
Sealed Air Corporation* 2,000 104,750
PAPER & FOREST PRODUCTS - 0.5%
Consolidated Papers, Inc. 6,000 219,375
Georgia-Pacific Group 4,800 126,000
International Paper Company 8,000 238,500
Weyerhaeuser Company 6,400 275,200
PETROLEUM - 1.8%
Apache Corporation 2,700 158,794
BP Amoco PLC-ADR 20,292 1,147,766
Chevron Corporation 9,300 789,919
Devon Energy Corporation 1,500 84,281
Repsol SA-ADR 10,200 202,088
Royal Dutch Petroleum Company 14,600 898,813
Texaco, Inc. 2,300 122,475
PRECISION INSTRUMENT - 0.3%
Cuno, Inc.* 1,000 23,125
Dionex Corporation* 2,000 53,500
KLA-Tencor Corporation* 3,000 175,688
PE Corp-PE Biosystems Group 4,000 263,438
PRINTING - 0.1%
Valassis Communications, Inc.* 3,900 148,688
PUBLISHING - 0.4%
McGraw-Hill Companies, Inc. 9,000 490,500
Meredith Corporation 3,700 124,875
Value Line, Inc. 5,700 219,450
RAILROAD - 0.2%
Kansas City Southern Ind., Inc. 4,500 399,094
REAL ESTATE INVESTMENT MANAGEMENT - 0.1%
Jones Lang LaSalle, Inc.* 4,200 56,175
Security Capital Group, Inc. - Class B* 6,400 108,800
Trammell Crow Company* 6,500 69,875
</TABLE>
See Notes To Financial Statements
24
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUST - 1.3%
Archstone Communities Trust 16,400 $ 345,425
CarrAmerica Realty Corporation 6,000 159,000
Duke Realty Investments, Inc. 10,200 228,225
Equity Office Properties Trust 10,700 298,095
Equity Residential Properties Trust 7,500 345,000
Prologis Trust 18,908 404,159
Rouse Company 9,800 242,550
Simon Property Group, Inc. 6,400 142,000
Weingarten Realty Investors 5,200 209,950
RECREATION - 0.3%
Brunswick Corporation 6,000 99,375
Carnival Corporation 4,000 78,000
Harley-Davidson, Inc. 8,000 308,000
Premier Parks, Inc.* 3,300 75,075
RESTAURANT - 0.2%
McDonald's Corporation 5,000 164,688
Starbucks Corporation* 8,000 305,500
RETAIL STORE - 1.7%
Bed Bath & Beyond, Inc.* 8,000 290,000
BJ's Wholesale Club, Inc.* 3,400 112,200
CDW Computer Centers, Inc.* 4,000 250,000
Circuit City Stores, Inc. 3,000 99,750
Dollar General Corporation 15,258 297,521
Dollar Tree Stores, Inc.* 3,300 130,556
Family Dollar Stores 8,000 156,500
Harcourt General, Inc. 2,500 135,938
Kohl's Corporation* 2,000 111,250
Lands' End, Inc.* 2,200 73,425
Radioshack Corporation 5,000 236,875
Ross Stores, Inc. 5,000 85,313
Staples, Inc.* 3,300 50,738
Target Corporation 6,000 348,000
The Men's Wearhouse, Inc.* 2,250 50,203
Tiffany & Company 4,600 310,500
TJX Companies, Inc. 5,900 110,625
Williams-Sonoma, Inc.* 3,500 113,531
Zale Corporation* 2,200 80,300
SECURITIES BROKERAGE - 0.8%
A.G. Edwards, Inc. 5,500 214,500
Bear Stearns Companies, Inc. 5,176 215,451
Charles Schwab Corporation 12,337 394,784
Investment Technology Group, Inc. 4,626 182,727
Legg Mason, Inc. 3,600 180,000
Merrill Lynch & Company, Inc. 2,400 276,000
Raymond James Financial, Inc. 3,500 78,750
SEMICONDUCTOR - 4.2%
Altera Corporation* 5,000 509,688
Analog Devices, Inc.* 5,800 440,800
Applied Materials, Inc.* 3,000 271,875
Applied Micro Circuits Corporation* 3,800 375,250
Broadcom Corporation* 1,000 218,938
Burr-Brown Corporation* 4,000 346,750
Dallas Semiconductor Corporation 5,000 203,750
Intel Corporation 9,000 1,203,188
Lattice Semiconductor Corporation* 4,100 283,413
Linear Technology Corporation 4,800 306,900
Maxim Integrated Products, Inc.* 5,600 380,450
Motorola, Inc. 10,605 308,208
National Semiconductor Corporation* 2,800 165,200
PMC-Sierra, Inc.* 3,000 533,063
Qlogic Corporation* 2,000 132,125
SDL, Inc.* 2,000 570,375
Semtech Corporation* 500 38,242
Texas Instruments, Inc. 7,200 494,550
Vitesse Semiconductor Corporation* 5,000 367,813
Xilinx, Inc.* 8,400 693,525
STEEL - 0.2%
Nucor Corporation 8,800 292,050
</TABLE>
See Notes To Financial Statements
25
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ ----------------
<S> <C> <C>
TELECOMMUNICATIONS EQUIPMENT - 1.1%
ADC Telecommunications, Inc.* 4,000 $ 335,500
American Tower Corporation 4,300 179,256
E-Tek Dynamics, Inc.* 1,500 395,719
Harmonic, Inc.* 1,000 24,750
JDS Uniphase Corporation* 3,400 407,575
Nortel Networks Corporation 6,910 471,587
Pinnacle Holdings, Inc.* 3,000 162,000
RF Micro Devices, Inc.* 500 43,813
Scientific-Atlanta, Inc. 500 37,250
Tellabs, Inc.* 1,300 88,969
TELECOMMUNICATIONS SERVICE - 3.0%
Allegiance Telecom, Inc.* 2,250 144,000
ALLTEL Corporation 9,786 606,120
Bell Atlantic Corporation 8,200 416,150
BellSouth Corporation 10,000 426,250
Centurytel, Inc. 8,000 230,000
Crown Castle International Corporation* 5,300 193,450
GTE Corporation 12,500 775,000
Intermedia Communications, Inc.* 3,400 101,150
MCI WorldCom, Inc.* 8,000 367,000
McleodUSA, Inc.* 15,000 310,313
Nextel Communications, Inc.* 2,000 122,375
NEXTLINK Communications, Inc.* 6,000 227,625
NTL, Inc.* 1,250 74,844
SBC Communications, Inc. 18,896 817,252
Sprint Corporation 6,400 326,400
United States Cellular Corporation* 1,100 69,300
Viatel, Inc.* 3,300 94,256
Western Wireless Corporation* 3,200 174,400
Winstar Communications, Inc.* 3,000 101,625
TOBACCO - 0.3%
Philip Morris Companies, Inc. 15,400 409,063
UST, Inc. 9,000 132,188
TOILETRIES / COSMETICS - 1.0%
Avon Products, Inc. 12,000 534,000
Colgate-Palmolive Company 6,500 389,188
Gillette Company 6,000 209,625
Int'l Flavors & Fragrances, Inc. 5,000 150,938
Kimberly-Clark Corporation 11,300 650,456
Proctor & Gamble Company 2,400 137,400
TOYS - 0.1%
Hasbro, Inc. 13,250 212,000
Mattel, Inc. 5,125 67,586
TRANSPORT SERVICES - 0.2%
C.H. Robinson Worldwide, Inc. 3,000 148,500
Expeditors International of Washington, Inc. 4,200 199,500
WATER UTILITY - 0.1%
American Water Works Company, Inc. 8,500 212,500
Azurix Corporation* 6,000 42,000
------------
TOTAL COMMON STOCK - 59.6%
(Cost $68,551,287) $ 112,572,981
============
</TABLE>
*Securities are non-income producing
See Notes To Financial Statements
26
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
-------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
AEROSPACE / DEFENSE - 1.0%
B.F. Goodrich Company A- 6.800 02/01/18 $ 500,000 $ 441,810
Lockheed Martin Corporation BBB- 7.650 05/01/16 750,000 693,407
Raytheon Company BBB- 6.750 08/15/07 750,000 697,574
AIR TRANSPORT - 0.2%
Federal Express Corporation BBB+ 8.760 05/22/15 350,000 368,781
AUTO & TRUCK - 1.3%
Ford Motor Company A 6.500 08/01/18 1,000,000 866,018
General Motors Corporation A 7.700 04/15/16 1,000,000 982,958
TRW, Inc. BBB 6.250 01/15/10 750,000 651,218
BANK - 4.5%
Banc One Corporation A- 10.000 08/15/10 750,000 835,783
Bank of America Corporation A 7.750 08/15/15 1,000,000 972,445
BankBoston Corporation A 7.375 09/15/06 500,000 483,584
Chase Manhattan Corporation A 6.750 08/15/08 1,000,000 933,737
Comerica Bank A- 7.125 12/01/13 750,000 680,625
First Union Corporation A- 8.000 08/15/09 1,000,000 990,651
MBNA America Bank, N.A. BBB 6.750 03/15/08 500,000 454,314
Republic New York Corporation A 7.000 03/22/11 500,000 463,958
Royal Bank of Scotland PLC A 6.375 02/01/11 1,000,000 885,897
Swiss Bank Corporation-NY AA 7.375 07/15/15 1,000,000 966,639
Wachovia Corporation A+ 6.375 02/01/09 1,000,000 909,579
BEVERAGE - 0.5%
Anheuser-Busch Companies, Inc. A+ 7.125 07/01/17 1,000,000 940,203
BROADCASTING/CABLE TV - 0.5%
Time Warner, Inc. BBB 7.250 10/15/17 1,000,000 905,928
BUILDING MATERIALS - 0.2%
Masco Corporation A- 7.125 08/15/13 500,000 464,949
CHEMICAL - 1.1%
Monsanto Company AA- 8.875 12/15/09 1,000,000 1,096,017
Witco Corporation BBB 6.125 02/01/06 500,000 455,582
Witco Corporation BBB 7.750 04/01/23 500,000 443,896
</TABLE>
See Notes To Financial Statements
27
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
-------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
COMPUTER & PERIPHERALS - 0.5%
Dell Computer Corporation BBB+ 6.550 04/15/08 $ 1,000,000 $ 918,094
COMPUTER SOFTWARE & SERVICES - 0.5%
Computer Associates International, Inc. BBB+ 6.500 04/15/08 1,000,000 912,615
DIVERSIFIED - 1.2%
Norsk Hydro ASA A 9.000 04/15/12 1,000,000 1,066,202
Service Corporation International BB+ 7.700 04/15/09 500,000 260,000
Tyco International Group SA A- 6.375 06/15/05 1,000,000 942,704
ELECTRIC & GAS UTILITIES - 4.5%
Dayton Power & Light Company BBB+ 8.150 01/15/26 500,000 475,926
Delmarva Power & Light Company A 8.500 02/01/22 500,000 494,031
Duke Energy Corporation AA- 6.375 03/01/08 1,000,000 925,824
Duquesne Light Company BBB+ 7.550 06/15/25 1,000,000 897,746
Enserch Corporation BBB 6.564 07/01/05 500,000 476,250
Florida Power Corporation AA- 8.000 12/01/22 500,000 480,984
Hydro-Quebec A+ 7.000 03/01/05 500,000 490,592
Jersey Central Power & Light Company A+ 6.750 11/01/25 750,000 625,708
Potomac Edison Company A+ 7.750 05/01/25 500,000 465,752
Texas Utilities Company BBB+ 7.875 03/01/23 750,000 691,050
Union Electric Company AA- 8.750 12/01/21 750,000 775,770
Virginia Electric Power A 8.000 03/01/04 1,000,000 1,013,233
Western Resources, Inc. BB- 6.875 08/01/04 750,000 706,664
FINANCIAL SERVICES - 4.2%
American General Finance Corporation A+ 8.125 08/15/09 1,000,000 1,014,153
BHP Finance USA Ltd. A- 7.250 03/01/16 500,000 471,907
Dow Capital BV A 8.700 05/15/22 250,000 255,292
Fletcher Challenge Capital Canada, Inc. BBB 8.250 06/20/16 500,000 468,750
General Electric Capital Corporation AAA 8.300 09/20/09 500,000 532,688
General Electric Capital Corporation AAA 8.000 08/20/14 500,000 490,492
Household Finance Corporation A 6.375 08/01/10 1,000,000 885,440
IBM Credit Corporation A+ 6.750 12/24/07 500,000 470,349
Morgan Stanley Dean Witter AA- 6.750 10/15/13 1,000,000 896,070
Santander Finance Issuances A 6.375 02/15/11 1,000,000 885,593
Sears Roebuck Acceptance Corporation A- 6.875 10/15/17 1,250,000 1,073,931
Washington Mutual, Inc. BBB 8.250 04/01/10 500,000 497,386
</TABLE>
See Notes To Financial Statements
28
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
-------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
FOOD PROCESSING - 0.5%
Nabisco, Inc. BBB 7.050 07/15/07 $ 1,000,000 $ 892,507
FOOD WHOLESALERS - 0.1%
Sysco Corporation AA- 7.250 04/15/07 250,000 249,689
FOREIGN GOVERNMENT - 1.3%
Province of Nova Scotia A- 7.250 07/27/13 1,000,000 973,000
Province of Quebec A+ 7.125 02/09/24 1,000,000 936,578
Province of Saskatchewan A 9.375 12/15/20 525,000 611,548
GROCERY - 0.3%
SUPERVALU, INC. BBB+ 6.640 06/09/06 500,000 473,349
HOTEL / GAMING - 0.6%
Hilton Hotels Corporation BBB- 7.200 12/15/09 750,000 665,241
Mirage Resorts, Inc. BBB- 7.250 08/01/17 500,000 422,457
INDUSTRIAL SERVICES - 0.2%
ServiceMaster Company BBB 7.100 03/01/18 500,000 429,232
INSURANCE - 1.8%
Ace INA Holdings A- 8.300 08/15/06 750,000 755,625
Allstate Corporation A+ 7.500 06/15/13 1,000,000 934,602
CIGNA Corporation A 8.250 01/01/07 750,000 761,635
MBIA, Inc. AA 9.375 02/15/11 950,000 1,040,089
MACHINERY - 0.5%
Case Corporation BBB 7.250 01/15/16 500,000 441,418
Clark Equipment Company A- 8.000 05/01/23 500,000 495,099
MEDICAL SUPPLIES - 0.6%
Cardinal Health, Inc. A 6.000 01/15/06 600,000 555,298
Johnson & Johnson AAA 8.720 11/01/24 550,000 591,081
METALS & MINING - 0.2%
Placer Dome, Inc. BBB 7.750 06/15/15 500,000 447,313
</TABLE>
See Notes To Financial Statements
29
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
-------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
NATURAL GAS - 1.1%
Columbia Energy Group BBB+ 7.320 11/28/10 $ 1,000,000 $ 914,093
Enron Corporation BBB+ 7.000 08/15/23 750,000 650,412
Southwestern Energy Company BBB+ 6.700 12/01/05 500,000 476,338
NEWSPAPER - 0.1%
Knight-Ridder, Inc. A 9.875 04/15/09 100,000 115,651
OILFIELD SERVICES - 0.9%
Noble Drilling Corporation A- 7.500 03/15/19 1,000,000 924,421
Smith International, Inc. BBB+ 7.000 09/15/07 750,000 713,200
PACKAGING & CONTAINER - 0.2%
Crown Cork & Seal Company, Inc. BBB 8.375 01/15/05 390,000 380,945
PAPER & FOREST PRODUCTS - 0.7%
Pactiv Corporation BBB- 8.125 06/15/17 500,000 477,194
Weyerhaeuser Company A 6.950 08/01/17 1,000,000 887,693
PETROLEUM - 1.3%
Atlantic Richfield Company AA+ 8.500 04/01/12 1,000,000 1,077,778
Louisiana Land & Exploration Company A- 7.625 04/15/13 1,000,000 964,302
Phillips Petroleum Company BBB 8.860 05/15/22 500,000 502,022
PUBLISHING - 0.3%
News America Holdings BBB- 8.000 10/17/16 500,000 477,906
RAILROAD - 0.6%
Burlington Northern Santa Fe BBB+ 8.750 02/25/22 1,000,000 1,053,075
RENTAL AUTO / EQUIPMENT - 0.5%
Hertz Corporation A- 6.625 05/15/08 1,000,000 931,101
RESTAURANT - 0.2%
Darden Restaurants, Inc. BBB+ 7.125 02/01/16 500,000 455,665
RETAIL STORE - 0.5%
Dayton Hudson Corporation A- 9.625 02/01/08 200,000 224,119
Dillard's, Inc. BBB 7.850 10/01/12 500,000 412,451
J.C. Penney Company BBB 8.250 08/15/22 500,000 385,944
</TABLE>
See Notes To Financial Statements
30
<PAGE>
ADVANCE CAPITAL I, INC. - BALANCED FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
FIXED INCOME SECURITIES AND CREDIT PRINCIPAL MARKET
REPURCHASE AGREEMENTS RATING COUPON MATURITY AMOUNT VALUE
-------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
SECURITIES BROKERAGE - 1.3%
Bear Stearns Companies, Inc. A 7.250 10/15/06 $ 750,000 $ 715,705
Lehman Brothers Holdings, Inc. A 8.500 08/01/15 1,000,000 1,000,290
Merrill Lynch & Company, Inc. AA- 7.190 08/07/12 750,000 699,901
SEMICONDUCTOR - 0.5%
Applied Materials, Inc. A- 7.125 10/15/17 1,000,000 910,673
TELECOMMUNICATIONS SERVICE - 3.8%
AT&T Corporation AA- 6.000 03/15/09 1,000,000 890,087
Bell Canada A+ 9.500 10/15/10 1,000,000 1,132,142
GTE Corporation A+ 6.460 04/15/08 1,000,000 928,514
MCI WorldCom, Inc. A- 7.750 03/15/24 750,000 693,853
Michigan Bell Telephone AA- 7.500 02/15/23 750,000 690,982
New York Telephone Company AA 7.375 12/15/11 1,000,000 958,776
Sprint Capital Corporation BBB+ 6.900 05/01/19 1,000,000 888,843
Vodafone Airtouch PLC A- 7.500 07/15/06 1,000,000 983,913
TOBACCO - 0.2%
Philip Morris Companies, Inc. A 9.000 01/01/01 400,000 401,819
U.S. GOVERNMENT - 0.5%
U.S. Treasury - Bond 6.625 05/15/07 1,000,000 1,021,250
--------------
TOTAL FIXED-INCOME SECURITIES - 39.0%
(Cost $78,821,551) 73,763,568
REPURCHASE AGREEMENTS - 0.5%
Fifth Third Bank 2 Party Repurchase
Agreement, 6.35%, due 06/30/00 52,792
Fifth Third Bank 2 Party Repurchase
Agreement, 6.62%, due 07/03/00 832,196
TOTAL COMMON STOCK - 59.6%
(Cost $68,551,287) 112,572,981
--------------
TOTAL INVESTMENTS IN SECURITIES - 99.1%
(Cost $148,257,826) $ 187,221,537
==============
</TABLE>
See Notes To Financial Statements
31
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
ADVERTISING - 1.5%
Infinity Broadcasting BBB 8.875 06/15/07 $ 1,000,000 $ 1,033,201
Lamar Advertising Company B 9.625 12/01/06 1,000,000 1,007,007
News Corporation Ltd. BB+ 8.750 02/15/06 925,000 890,147
AEROSPACE / DEFENSE - 1.5%
AAR Corporation BBB 7.250 10/15/03 500,000 479,723
Boeing Company AA- 9.750 04/01/12 1,000,000 1,156,682
Lockheed Martin Corporation BBB- 7.875 03/15/23 500,000 487,337
Lockheed Martin Corporation BBB- 7.750 04/15/23 1,000,000 914,936
AIR TRANSPORT - 2.8%
AMR Corporation BBB- 9.000 08/01/12 1,000,000 1,037,258
Continental Airlines, Inc. BB- 8.000 12/15/05 1,230,000 1,125,346
Delta Air Lines, Inc. BBB- 10.375 02/01/11 500,000 537,794
Federal Express Corporation BBB+ 7.630 01/01/15 1,000,000 967,184
Northwest Airlines, Inc. BB 8.700 03/15/07 1,000,000 915,760
United Airlines, Inc. BB+ 10.250 07/15/21 500,000 489,730
United Airlines, Inc. BB+ 9.750 08/15/21 500,000 499,893
AUTO PARTS - 0.7%
Federal-Mogul Corporation BB 7.750 07/01/06 1,000,000 740,860
Titan Wheel International, Inc. B+ 8.750 04/01/07 1,000,000 640,000
AUTO & TRUCK - 2.5%
Ford Motor Company A 8.875 11/15/22 2,000,000 2,094,399
General Motors Corporation A 8.100 06/15/24 1,000,000 977,500
Lear Corporation BB+ 8.110 05/15/09 1,000,000 904,699
TRW, Inc. BBB 9.375 04/15/21 1,000,000 1,083,683
BANK - 8.1%
ABN AMRO Bank NV AA- 7.300 12/01/26 500,000 451,787
Banc One Corporation A- 7.750 07/15/25 1,000,000 938,792
Bank of America Corporation A 10.200 07/15/15 1,000,000 1,161,268
Bank of America Corporation A 7.125 03/01/09 1,000,000 956,270
BankBoston Corporation A- 6.625 12/01/05 1,000,000 950,402
Bankers Trust Corporation A+ 7.500 11/15/15 1,500,000 1,399,630
Chase Manhattan Corporation A 6.125 10/15/08 1,000,000 899,000
Citicorp A+ 7.250 10/15/11 1,000,000 960,617
Comerica Bank A- 7.125 12/01/13 1,000,000 907,500
Dresdner Bank - New York A+ 7.250 09/15/15 1,000,000 945,000
</TABLE>
See Notes To Financial Statements
32
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
BANK - 8.1% (Continued)
First Union Corporation A- 8.000 08/15/09 $ 1,000,000 $ 990,651
JPM Capital Trust II A 7.950 02/01/27 1,000,000 898,148
KeyCorp BBB+ 6.750 03/15/06 1,000,000 951,715
National City Corporation A- 6.875 05/15/19 1,000,000 867,479
Republic New York Corporation A 9.125 05/15/21 1,000,000 1,085,842
Royal Bank of Scotland PLC A 6.375 02/01/11 1,000,000 885,897
Swiss Bank Corporation-NY AA 7.375 06/15/17 1,000,000 963,073
BEVERAGE - 0.7%
Anheuser-Busch Companies, Inc. A+ 7.125 07/01/17 1,500,000 1,410,304
BROADCASTING / CABLE TV - 6.9%
Adelphia Communications BB- 9.500 03/01/05 1,000,000 962,236
Adelphia Communications BB- 9.750 02/15/02 250,000 248,753
CBS Corporation BBB+ 8.625 08/01/12 750,000 789,360
Chancellor Media Corporation B 8.750 06/15/07 1,250,000 1,288,744
Charter Communications Holdings LLC B+ 8.625 04/01/09 1,500,000 1,320,360
Comcast Corporation BBB- 9.375 05/15/05 500,000 522,500
Comcast Corporation BBB 8.875 04/01/07 500,000 512,739
Comcast Corporation BBB 8.375 11/01/05 1,000,000 1,024,915
Continental Cablevision, Inc. AA- 9.500 08/01/13 500,000 544,849
CSC Holdings, Inc. BB+ 7.875 02/15/18 500,000 458,296
CSC Holdings, Inc. BB- 9.875 05/15/06 750,000 765,000
Fox Family Worldwide, Inc. B 9.250 11/01/07 1,250,000 1,111,893
Rogers Cablesystems Ltd. BB+ 10.000 03/15/05 500,000 513,750
Rogers Cablesystems Ltd. BB+ 10.000 12/01/07 500,000 512,500
Sinclair Broadcast Group, Inc. B 10.000 09/30/05 1,000,000 954,557
Time Warner, Inc. BBB 9.125 01/15/13 1,000,000 1,078,811
Turner Broadcasting System, Inc. BBB 8.375 07/01/13 750,000 769,831
Young Broadcasting, Inc. B 8.750 06/15/07 750,000 690,581
BUILDING MATERIALS - 0.4%
Building Materials Corporation BB 8.000 10/15/07 1,000,000 803,421
CHEMICAL - 1.6%
Eastman Chemical Company BBB+ 7.250 01/15/24 1,000,000 884,336
Union Carbide Chemicals & Plastics Company BBB 7.875 04/01/23 600,000 592,087
Witco Corporation BBB 6.125 02/01/06 500,000 455,582
Witco Corporation BBB 7.750 04/01/23 1,500,000 1,331,688
</TABLE>
See Notes To Financial Statements
33
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PRINTING 0.5%
Valassis Communications BBB- 6.625 01/15/09 $ 1,000,000 $ 901,614
COMPUTER & PERIPHERALS - 0.6%
Computer Associates International, Inc. BBB+ 6.375 04/15/05 1,250,000 1,153,470
COMPUTER SOFTWARE & SERVICES - 0.5%
International Business Machines Corporation A+ 8.375 11/01/19 1,000,000 1,091,428
DIVERSIFIED - 1.8%
Mark IV Industries, Inc. BB- 7.500 09/01/07 1,500,000 1,137,290
Norsk Hydro ASA A 9.000 04/15/12 1,500,000 1,599,303
Service Corporation International BB+ 7.700 04/15/09 1,550,000 806,000
ELECTRIC & GAS UTILITIES - 9.5%
Alabama Power Company A+ 9.000 12/01/24 1,000,000 1,022,868
Calpine Corporation BB+ 7.875 04/01/08 1,500,000 1,426,594
Dayton Power & Light Company BBB+ 8.150 01/15/26 1,000,000 951,851
Duke Energy Corporation AA- 6.750 08/01/25 1,000,000 847,201
Florida Power Corporation AA- 8.000 12/01/22 1,000,000 961,968
Hydro-Quebec A+ 8.400 01/15/22 1,350,000 1,438,263
Indianapolis Power & Light Company AA- 7.050 02/01/24 1,000,000 880,502
Jersey Central Power & Light Company A+ 6.750 11/01/25 1,000,000 834,278
New Orleans Public Service, Inc. BBB 8.000 03/01/23 600,000 576,600
Northern Illinois Gas Company AA 8.875 08/15/21 1,000,000 1,026,349
Oklahoma Gas & Electric Company A+ 7.300 10/15/25 1,500,000 1,356,335
PG&E Corporation AA- 7.250 03/01/26 1,000,000 879,944
Potomac Edison Company A+ 8.000 06/01/24 1,000,000 954,381
Potomac Electric Power Company A 9.000 06/01/21 1,000,000 1,038,241
Public Service Electric & Gas A- 7.000 09/01/24 1,000,000 850,785
Rocheseter Gas & Electric Corporation A- 9.375 04/01/21 1,000,000 1,031,132
Southern California Gas Company AA- 8.750 10/01/21 1,000,000 1,004,641
Virginia Electric Power A 8.625 10/01/24 1,000,000 1,000,439
Western Resources, Inc. BBB- 7.650 04/15/23 1,000,000 880,452
ELECTRONICS - 0.7%
Koninklijke Philips Electronics N.V. BBB+ 7.250 08/15/13 1,500,000 1,406,465
ENTERTAINMENT - 0.5%
Viacom, Inc. BBB+ 8.250 08/01/22 1,000,000 967,146
</TABLE>
See Notes To Financial Statements
34
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - 4.0%
Auburn Hills Trust A+ 12.000 05/01/20 $ 400,000 $ 574,776
BHP Finance USA Ltd. A- 7.250 03/01/16 1,000,000 943,814
CRA Finance, Ltd. AA- 7.125 12/01/13 500,000 469,360
Dow Capital BV A 8.700 05/15/22 1,000,000 1,021,168
Fairfax Financial Holdings BBB+ 8.250 10/01/15 1,500,000 1,233,750
Fletcher Challenge Capital Canada, Inc. BBB 8.250 06/20/16 1,000,000 937,500
Household Finance Corporation A 6.375 08/01/10 1,500,000 1,328,161
Morgan Stanley Dean Witter AA- 6.750 10/15/13 1,250,000 1,120,088
Sears Roebuck Acceptance Corporation A- 6.875 10/15/17 500,000 429,572
FOOD PROCESSING - 0.7%
ConAgra, Inc. BBB 9.750 03/01/21 500,000 570,588
Nabisco, Inc. BBB 7.550 06/15/15 1,000,000 852,262
GROCERY - 0.9%
Great Atlantic & Pacific Tea Company BBB- 7.750 04/15/07 1,000,000 902,500
Kroger Company BBB- 7.450 03/01/08 1,000,000 957,328
HOMEBUILDING - 3.4%
Beazer Homes USA, Inc. BB- 8.875 04/01/08 1,000,000 929,732
D.R. Horton, Inc. BB 10.000 04/15/06 1,000,000 989,417
Engle Homes, Inc. B+ 9.250 02/01/08 1,000,000 831,206
Kaufman & Broad Home Corporation BB+ 7.750 10/15/04 1,000,000 923,305
MDC Holdings, Inc. BB 8.375 02/01/08 1,500,000 1,328,713
Ryland Group, Inc. B+ 9.625 06/01/04 1,000,000 954,956
Standard Pacific Corporation BB 8.500 06/15/07 1,000,000 904,336
HOTEL / GAMING - 5.5%
Boyd Gaming Corporation BB- 9.250 10/01/03 1,000,000 990,309
Harrah's Operating Company, Inc. BB+ 7.875 12/15/05 1,500,000 1,408,181
Hilton Hotels Corporation BBB- 7.200 12/15/09 1,500,000 1,330,482
HMH Properties, Inc. BB 8.450 12/01/08 1,000,000 928,402
Mandalay Resort Group BB- 7.625 07/15/13 450,000 361,601
Mirage Resorts, Inc. BBB- 6.750 02/01/08 1,500,000 1,338,946
Park Place Entertainment Corporation BB+ 7.875 12/15/05 1,000,000 929,614
Prime Hospitality Corporation BB 9.250 01/15/06 1,000,000 984,684
Rank Group Finance PLC BBB- 7.125 01/15/18 1,000,000 873,473
Starwood Hotels & Resorts BB+ 7.375 11/15/15 1,000,000 821,642
Station Casinos, Inc. B+ 10.125 03/15/06 1,000,000 1,013,171
</TABLE>
See Notes To Financial Statements
35
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
INDUSTRIAL SERVICES - 0.5%
Coinmach Corporation B 11.750 11/15/05 $ 1,000,000 $ 952,500
INSURANCE - 4.5%
Ace INA Holdings A- 8.300 08/15/06 1,000,000 1,007,500
Aetna Services, Inc. A 8.000 01/15/17 824,000 751,900
American Financial Group, Inc. BBB+ 7.125 12/15/07 1,000,000 888,309
CIGNA Corporation A 7.650 03/01/23 500,000 457,670
CNA Financial Corporation BBB 6.950 01/15/18 500,000 396,294
CNA Financial Corporation BBB 7.250 11/15/23 1,000,000 830,145
Continental Corporation BBB- 8.375 08/15/12 600,000 550,992
Loews Corporation AA- 7.000 10/15/23 1,000,000 863,343
MBIA, Inc. AA 8.200 10/01/22 2,000,000 1,908,093
Metropolitan Life Insurance Company* A+ 7.450 11/01/23 550,000 490,189
New York Life Insurance Company AA- 7.500 12/15/23 1,000,000 900,000
MACHINERY - 0.2%
Clark Equipment Company A- 8.000 05/01/23 500,000 495,099
MEDICAL SERVICES - 0.7%
Tenet Healthcare Corporation BB- 8.625 01/15/07 1,500,000 1,427,416
MEDICAL SUPPLIES - 0.3%
Cardinal Health, Inc. A 6.500 02/15/04 700,000 677,076
METALS & MINING - 1.2%
Alcan Aluminum Ltd. A- 8.875 01/15/22 1,000,000 1,024,296
Inco Ltd. BB+ 9.600 06/15/22 500,000 493,750
Placer Dome, Inc. BBB 7.750 06/15/15 1,000,000 894,626
MORTGAGED BACK SECURITIES - 2.6%
Ginnie Mae AAA 6.500 12/20/28 1,820,825 1,718,972
Ginnie Mae AAA 6.500 01/20/29 2,772,374 2,617,294
Ginnie Mae AAA 6.500 11/20/28 900,244 849,887
NATURAL GAS - 3.0%
AmeriGas Partners, L.P. BB+ 10.125 04/15/07 1,200,000 1,209,869
ANR Pipeline Company BBB+ 9.625 11/01/21 1,000,000 1,167,055
</TABLE>
See Notes To Financial Statements
36
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
NATURAL GAS - 3.6% (Continued)
Columbia Energy Group BBB+ 7.320 11/28/10 $ 1,250,000 $ 1,142,617
Ferrellgas Partners, L.P. B+ 9.375 06/15/06 500,000 485,360
Louis Dreyfus Natural Gas Corporation BB+ 9.250 06/15/04 1,500,000 1,490,840
TransCanada Pipelines Ltd. A- 7.875 04/01/23 600,000 597,728
NEWSPAPER - 0.5%
Hollinger International, Inc. BB- 9.250 02/01/06 500,000 488,156
Hollinger International, Inc. BB- 9.250 03/15/07 500,000 477,705
OILFIELD SERVICES - 2.9%
Burlington Resources A- 9.125 10/01/21 700,000 782,935
Husky Oil, Ltd. BBB 7.550 11/15/16 1,000,000 888,667
Kerr-McGee Corporation BBB 7.000 11/01/11 1,500,000 1,386,661
Offshore Logistics, Inc. BB 7.875 01/15/08 1,200,000 1,057,916
Parker Drilling Company B+ 9.750 11/15/06 750,000 724,305
Pride International, Inc. BB 9.375 05/01/07 1,000,000 1,001,647
PACKAGING & CONTAINERS - 1.2%
Crown Cork & Seal Company, Inc. BBB 8.000 04/15/23 1,500,000 1,280,299
Owens-Illinois, Inc. BB+ 8.100 05/15/07 750,000 700,093
Owens-Illinois, Inc. BB+ 7.800 05/15/18 500,000 418,153
PAPER & FOREST PRODUCTS - 1.6%
Bowater, Inc. BBB 9.500 10/15/12 700,000 763,390
Champion International Corporation BBB 7.625 09/01/23 1,500,000 1,345,378
Georgia-Pacific Corporation BBB- 9.125 07/01/22 1,000,000 999,075
PETROLEUM - 2.1%
Clark USA, Inc. B 10.875 12/01/05 500,000 285,000
Louisiana Land & Exploration Company A- 7.625 04/15/13 1,000,000 964,302
Ocean Energy, Inc. BB+ 7.625 07/01/05 500,000 474,009
Ocean Energy, Inc. BB- 8.625 08/01/05 1,000,000 1,015,109
Phillips Petroleum Company BBB 8.490 01/01/23 1,000,000 979,145
Ultramar Diamond Shamrock Corporation BBB 8.000 04/01/23 600,000 543,000
PUBLISHING - 0.9%
News America Holdings BBB- 8.250 08/10/18 1,000,000 975,986
Primedia, Inc. BB- 10.250 06/01/04 750,000 759,218
</TABLE>
See Notes To Financial Statements
37
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
CREDIT PRINCIPAL MARKET
FIXED INCOME SECURITIES RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
RAILROAD - 0.7%
Union Pacific Corporation BBB- 8.350 05/01/25 $ 1,500,000 $ 1,422,293
RECREATION - 1.4%
Brunswick Corporation BBB+ 7.375 09/01/23 975,000 866,292
Speedway Motorsports, Inc. B+ 8.500 08/15/07 1,000,000 930,000
The Sports Club Company, Inc. B 11.375 03/15/06 1,000,000 1,011,641
RENTAL AUTO / EQUIPMENT - 0.6%
Hertz Corporation A- 6.625 05/15/08 1,200,000 1,117,321
RESTAURANT - 0.7%
Darden Restaurants, Inc. BBB+ 7.125 02/01/16 1,500,000 1,366,995
RETAIL STORE - 3.9%
Dayton Hudson Corporation A- 8.500 12/01/22 1,500,000 1,489,166
Dillard's, Inc. BBB 7.850 10/01/12 1,000,000 824,902
J.C. Penney Company BBB 7.950 04/01/17 1,000,000 753,179
May Department Stores A+ 8.300 07/15/26 1,000,000 988,678
Michaels Stores, Inc. BB- 10.875 06/15/06 1,000,000 1,047,500
Pep Boys-Manny, Moe & Jack BB+ 7.000 06/01/05 1,000,000 670,000
Sears, Roebuck & Company A- 9.375 11/01/11 1,000,000 1,098,542
The Limited, Inc. BBB+ 7.500 03/15/23 1,000,000 929,038
SECURITIES BROKERAGE - 2.5%
Bear Stearns Companies, Inc. A 6.625 01/15/04 1,000,000 957,525
Goldman Sachs Group L.P. A+ 8.000 03/01/13 1,000,000 976,767
Lehman Brothers, Inc. A 11.625 05/15/05 1,023,000 1,157,688
Morgan Stanley Dean Witter AA- 7.000 10/01/13 1,000,000 916,619
Paine Webber Group, Inc. BBB+ 7.625 02/15/14 1,000,000 931,649
SEMICONDUCTOR - 0.6%
Applied Materials, Inc. A- 7.125 10/15/17 1,250,000 1,138,341
SHOE - 0.5%
Brown Shoe Company, Inc. BB 9.500 10/15/06 1,000,000 989,084
STEEL - 1.1%
AK Steel Corporation BB 9.125 12/15/06 1,500,000 1,441,133
USX Corporation BBB 9.375 02/15/12 750,000 821,870
</TABLE>
See Notes To Financial Statements
38
<PAGE>
ADVANCE CAPITAL I, INC. - RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
----------------------------------------------------------------
<TABLE>
<CAPTION>
S & P
FIXED INCOME SECURITIES AND CREDIT PRINCIPAL MARKET
REPURCHASE AGREEMENT RATING COUPON MATURITY AMOUNT VALUE
--------------------------------------------------------- ------ --------- --------- --------
<S> <C> <C> <C> <C> <C>
TELECOMMUNICATIONS SERVICE - 6.4%
AT&T Corporation AA- 8.125 07/15/24 $ 800,000 $ 790,740
AT&T Corporation AA- 8.125 01/15/22 750,000 741,900
GCI, Inc. B+ 9.750 08/01/07 1,000,000 933,804
Global Crossings Ltd. BB 9.625 05/15/08 1,500,000 1,457,643
GTE Corporation A+ 8.750 11/01/21 1,500,000 1,579,029
Illinois Bell Telephone Company AA- 7.250 03/15/24 1,425,000 1,265,623
MasTec, Inc. BBB- 7.750 02/01/08 1,800,000 1,645,189
MCI WorldCom, Inc. A- 7.750 03/15/24 1,000,000 925,137
New Jersey Bell Telephone A+ 7.375 06/01/12 1,000,000 960,000
New York Telephone Company AA 7.375 12/15/11 500,000 479,388
Rogers Cantel, Inc. BB+ 9.750 06/01/16 1,000,000 1,085,000
SBC Communications Capital Corporation AA- 7.250 07/15/25 1,000,000 892,221
TOBACCO - 0.3%
Philip Morris Companies, Inc. A 8.375 01/15/17 547,000 506,900
TRANSPORTATION - 1.0%
Gulfmark Offshore, Inc. BB- 8.750 06/01/08 1,250,000 1,142,579
Sea Containers BB- 12.500 12/01/04 1,000,000 825,000
U.S. GOVERNMENT - 0.4%
U.S. Treasury - Bond 6.750 08/15/26 750,000 805,898
--------------
TOTAL FIXED INCOME SECURITIES - 97.7%
(Cost $209,440,722) 195,433,123
REPURCHASE AGREEMENT - 0.8%
Fifth Third Bank 2 Party Repurchase
Agreement, 6.62%, due 07/03/00 1,579,470
--------------
TOTAL INVESTMENTS IN SECURITIES - 98.5%
(Cost $211,020,192) $ 197,012,593
==============
</TABLE>
* Security exempt from registration under Rule 144A
of the Securities Act of 1933
See Notes To Financial Statements
39
<PAGE>
ADVANCE CAPITAL I, INC. - CORNERSTONE STOCK FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
MARKET
COMMON STOCK SHARES VALUE
------------------------------------------ -------- --------
<S> <C> <C>
AUTO & TRUCK - 0.7%
Ford Motor Company 11,800 $ 507,400
BANK - 1.9%
Bank of America Corporation 16,300 704,975
Wells Fargo Company 15,700 608,375
BEVERAGE - 1.8%
Coca-Cola Company 22,300 1,280,856
BIOTECHNOLOGY - 1.2%
Amgen, Inc.* 8,600 604,150
Biogen, Inc.* 3,100 199,950
BROADCASTING / CABLE TV - 2.8%
Comcast Corporation 6,200 251,100
The Walt Disney Company 16,200 631,800
Time Warner, Inc. 13,600 1,033,600
CHEMICAL - 0.6%
duPont, E.I. de Nemours & Company 8,800 385,000
COMPUTER & PERIPHERALS - 15.6%
Apple Computer, Inc.* 7,200 377,100
Cisco Systems, Inc.* 52,600 3,343,388
Compaq Computer Corporation 13,300 339,150
Dell Computer Corporation* 21,100 1,040,494
EMC Corporation* 19,500 1,486,875
Hewlett-Packard Company 8,600 1,069,625
International Business Machines Corp. 15,300 1,676,306
Sun Microsystems, Inc.* 11,800 1,073,063
VERITAS Software Corporation* 3,825 432,285
COMPUTER SOFTWARE & SERVICES - 10.3%
Adobe Systems, Inc. 2,500 325,000
America Online, Inc.* 20,600 1,084,075
Citrix Systems, Inc.* 7,200 136,350
CMGI, Inc.* 4,300 196,994
I2 Technologies, Inc. 1,500 156,398
Microsoft Corporation* 41,400 3,312,000
Oracle Corporation* 15,000 1,260,938
Siebel Systems, Inc.* 4,200 686,963
DIVERSIFIED - 0.7%
Tyco International, Ltd. 9,700 457,113
DRUG - 12.9%
Abbott Laboratories 14,800 656,750
American Home Products Corporation 14,600 857,750
Bristol-Myers Squibb Company 16,200 943,650
Eli Lilly & Company 9,500 945,250
MedImmune, Inc.* 7,500 555,000
Merck & Company, Inc. 21,300 1,618,800
Pfizer, Inc. 56,675 2,720,400
Schering-Plough Corporation 12,800 648,000
ELECTRICAL EQUIPMENT - 4.3%
General Electric Company 57,600 2,980,800
ELECTRONICS - 0.4%
Agilent Technologies, Inc.* 3,280 244,333
FINANCIAL SERVICES - 4.4%
Citigroup, Inc. 29,750 1,792,438
Fannie Mae 9,300 485,344
Morgan Stanley Dean Witter & Company 9,400 782,550
FOREIGN TELECOMMUNICATIONS - 1.5%
Ericsson (LM) Telephone-ADR-Class B 53,600 1,072,000
</TABLE>
See Notes To Financial Statements
40
<PAGE>
ADVANCE CAPITAL I, INC. - CORNERSTONE STOCK FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK AND MARKET
REPURCHASE AGREEMENT SHARES VALUE
------------------------------------------ -------- --------
<S> <C> <C>
INSURANCE - 2.5%
American International Group, Inc. 14,825 $ 1,741,938
MEDICAL SUPPLIES - 2.6%
Johnson & Johnson 11,600 1,181,750
Medtronic, Inc. 12,100 602,731
PETROLEUM - 5.2%
Exxon Mobil Corporation 30,572 2,399,902
Royal Dutch Petroleum Company 20,100 1,237,406
RESTAURANT - 0.5%
McDonald's Corporation 11,300 372,194
RETAIL STORE - 4.8%
Home Depot, Inc. 18,800 938,825
Wal-Mart Stores, Inc. 41,600 2,381,600
SECURITIES BROKERAGE - 0.6%
Charles Schwab Corporation 13,700 438,400
SEMICONDUCTOR - 10.1%
Applied Materials, Inc.* 5,000 453,125
Intel Corporation 28,000 3,743,250
Linear Technology Corporation 7,400 473,138
Maxim Integrated Products, Inc.* 6,100 414,419
Motorola, Inc. 16,800 488,250
Texas Instruments, Inc. 16,600 1,140,213
Xilinx, Inc.* 3,500 288,969
TELECOMMUNICATIONS EQUIPMENT - 5.0%
JDS Uniphase Corporation* 9,000 $ 1,078,875
Lucent Technologies, Inc. 27,700 1,616,988
QUALCOMM Inc.* 7,650 459,000
Tellabs, Inc.* 4,100 280,594
TELECOMMUNICATIONS SERVICE - 7.9%
AT&T Corporation 36,412 1,156,081
Bell Atlantic Corporation 14,500 735,875
BellSouth Corporation 14,900 635,113
Global Crossing Ltd.* 12,700 334,169
GTE Corporation 9,300 576,600
MCI WorldCom, Inc.* 15,900 729,413
SBC Communications, Inc. 31,022 1,341,702
TOILETRIES / COSMETICS - 0.9%
Proctor & Gamble Company 11,000 629,750
-------------
TOTAL COMMON STOCK - 99.2%
(Cost $60,105,743) 68,834,651
REPURCHASE AGREEMENT - 1.0%
Fifth Third Bank 2 Party Repurchase
Agreement, 6.62%, 07/03/00 675,739
-------------
TOTAL INVESTMENTS IN SECURITIES - 100.2%
(Cost $60,781,482) $ 69,510,390
===========
</TABLE>
* Securities are non-income producing
See Notes To Financial Statements
41
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY RETIREMENT CORNERSTONE
GROWTH BOND BALANCED INCOME STOCK
------------ ------------ ------------ ------------ ------------
<S>
ASSETS <C> <C> <C> <C> <C>
Investments in securities $ 142,620,792 $ 52,975,018 $187,221,537 $ 197,012,593 $ 69,510,390
Cash 242,015 255,490 142,715 19,458 385,843
Receivables
Dividends and interest 12,683 1,194,197 1,700,494 4,183,302 17,258
Securities sold 66,237 66,500 7,803 0 0
Prepaid expenses 2,763 1,025 4,065 1,504 729
------------ ------------ ------------ ------------ ------------
Total assets 142,944,490 54,492,230 189,076,614 201,216,857 69,914,220
LIABILITIES
Payable to affiliated entities
Investment advisory fees 83,265 17,551 110,788 82,821 22,813
Distribution fees 980 373 1,309 1,388 477
Accounts payable and accrued expenses 12,396 8,445 22,085 23,073 8,837
Securities purchased 0 679,604 0 1,089,208 497,765
Distributions payable 0 3,094 2,784 15,393 0
------------ ------------ ------------ ------------ ------------
Total liabilities 96,641 709,067 136,966 1,211,883 529,892
------------ ------------ ------------ ------------ ------------
Net assets $ 142,847,849 $ 53,783,163 $188,939,648 $ 200,004,974 $ 69,384,328
============ ============ ============ ============ ============
NET ASSETS
Paid-in capital $ 69,983,659 $ 56,171,216 $147,340,272 $ 217,096,224 $ 60,750,671
Accumulated undistributed net investment
income (loss) (495,548) 0 0 0 21,247
Accumulated undistributed net realized
gain (loss) on investments 8,595,739 (296,763) 2,635,665 (3,083,651) (116,498)
Net unrealized appreciation (depreciation)
in value of investments 64,763,999 (2,091,290) 38,963,711 (14,007,599) 8,728,908
------------ ------------ ------------ ------------ ------------
Net assets $ 142,847,849 $ 53,783,163 $188,939,648 $ 200,004,974 $ 69,384,328
============ ============ ============ ============ ============
SHARES OUTSTANDING 4,626,841 5,803,599 10,837,634 21,527,416 5,106,538
============ ============ ============ ============ ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 30.87 $ 9.27 $ 17.43 $ 9.29 $ 13.59
============ ============ ============ ============ ============
</TABLE>
See Notes To Financial Statements
42
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2000
------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY RETIREMENT CORNERSTONE
GROWTH BOND BALANCED INCOME STOCK
----------- ----------- ---------- ------------ ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 26,226 $ 1,936,652 $ 2,771,860 $ 8,512,139 $ 16,499
Dividends 149,560 0 835,208 0 225,836
----------- ----------- ---------- ------------ ---------
Total investment income 175,786 1,936,652 3,607,068 8,512,139 242,335
EXPENSES
Paid to affiliates:
Investment advisory fees 465,572 93,543 634,368 506,596 124,381
Distribution fees 169,922 58,464 224,643 253,298 77,738
Paid to others:
Custodial fees 5,930 3,225 11,002 9,546 4,557
Directors fees and expenses 1,848 641 2,518 2,832 859
Professional fees 6,200 2,387 8,422 9,429 2,873
Shareholder reporting costs 11,081 3,845 15,103 16,981 5,152
Registration and filing fees 6,384 6,204 8,034 1,884 5,356
Other operating expenses 4,397 1,199 7,487 982 172
----------- ----------- ---------- ------------ ---------
Total expenses 671,334 169,508 911,577 801,548 221,088
----------- ----------- ---------- ------------ ---------
NET INVESTMENT INCOME (LOSS) (495,548) 1,767,144 2,695,491 7,710,591 21,247
REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from securities sold 15,602,748 4,025,880 8,666,195 16,551,614 512,919
Cost of securities sold (7,025,264) (4,263,404) (6,032,508) (18,610,505) (578,829)
----------- ----------- ---------- ------------ ---------
Net realized gain (loss) on investments 8,577,484 (237,524) 2,633,687 (2,058,891) (65,910)
UNREALIZED GAIN (LOSS) ON INVESTMENTS
Appreciation, Beginning of year 52,988,226 (888,938) 37,158,327 (9,119,891) 8,276,981
Appreciation, End of period 64,763,999 (2,091,290) 38,963,711 (14,007,599) 8,728,908
----------- ----------- ---------- ------------ ---------
Net unrealized gain (loss) on investments 11,775,773 (1,202,352) 1,805,384 (4,887,708) 451,927
----------- ----------- ---------- ------------ ---------
NET GAIN (LOSS) ON INVESTMENTS 20,353,257 (1,439,876) 4,439,071 (6,946,599) 386,017
----------- ----------- ---------- ------------ ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $19,857,709 $ 327,268 $ 7,134,562 $ 763,992 $ 407,264
=========== =========== ========== ============ =========
</TABLE>
See Notes To Financial Statements
43
<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,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ (495,548) $ (506,105) $ 1,767,144 $ 886,545
Net realized gain (loss) on investments 8,577,484 13,484,885 (237,524) (59,239)
Net unrealized gain (loss) on investments 11,775,773 23,771,361 (1,202,352) (1,137,880)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations 19,857,709 36,750,141 327,268 (310,574)
Distributions to Shareholders:
Net investment income 0 0 (1,767,144) (886,545)
Net realized gain on investments 0 (13,167,056) 0 0
---------- ---------- ---------- ----------
Total distributions to shareholders 0 (13,167,056) (1,767,144) (886,545)
Share Transactions:
Net proceeds from sale of shares 14,772,062 17,779,839 22,757,389 32,473,007
Reinvestment of distributions 0 13,088,272 1,743,407 846,157
Cost of shares reacquired (6,296,822) (7,997,052) (3,639,493) (1,506,491)
---------- ---------- ---------- ----------
Net increase (decrease) derived from share transactions 8,475,240 22,871,059 20,861,303 31,812,673
---------- ---------- ---------- ----------
Net increase (decrease) in net assets 28,332,949 46,454,144 19,421,427 30,615,554
NET ASSETS
Beginning of year 114,514,900 68,060,756 34,361,736 3,746,182
---------- ---------- ---------- ----------
End of period $142,847,849 $114,514,900 $ 53,783,163 $ 34,361,736
=========== =========== =========== ===========
NUMBER OF SHARES
Sold 510,851 778,469 2,416,745 3,299,723
Shares issued from reinvestment of distributions 0 520,408 186,977 86,399
Reacquired (216,271) (361,372) (387,682) (151,307)
---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding 294,580 937,505 2,216,040 3,234,815
Outstanding:
Beginning of year 4,332,261 3,394,756 3,587,559 352,744
---------- ---------- ---------- ----------
End of period 4,626,841 4,332,261 5,803,599 3,587,559
=========== =========== =========== ===========
</TABLE>
See Notes To Financial Statements
44
<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,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ 2,695,491 $ 4,252,731 $ 7,710,591 $ 15,417,321
Net realized gain (loss) on investments 2,633,687 9,153,404 (2,058,891) (1,024,760)
Net unrealized gain (loss) on investments 1,805,384 (1,368,898) (4,887,708) (19,552,510)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations 7,134,562 12,037,237 763,992 (5,159,949)
Distributions to Shareholders:
Net investment income (2,695,491) (4,252,731) (7,710,591) (15,417,321)
Net realized gain on investments 0 (9,151,425) 0 0
---------- ---------- ---------- ----------
Total distributions to shareholders (2,695,491) (13,404,156) (7,710,591) (15,417,321)
Share Transactions:
Net proceeds from sale of shares 25,503,917 48,211,699 3,436,234 18,057,451
Reinvestment of distributions 2,674,838 13,332,203 7,606,929 15,215,852
Cost of shares reacquired (12,894,235) (16,843,598) (13,882,482) (24,126,037)
---------- ---------- ---------- ----------
Net increase derived from share transactions 15,284,520 44,700,304 (2,839,319) 9,147,266
---------- ---------- ---------- ----------
Net increase (decrease) in net assets 19,723,591 43,333,385 (9,785,918) (11,430,004)
NET ASSETS
Beginning of year 169,216,057 125,882,672 209,790,892 221,220,896
---------- ---------- ---------- ----------
End of period $188,939,648 $169,216,057 $200,004,974 $209,790,892
========== ========== ========== ==========
NUMBER OF SHARES
Sold 1,491,878 2,778,565 365,893 1,760,916
Shares issued from reinvestment of distributions 155,087 789,121 812,896 1,516,528
Reacquired (749,433) (974,501) (1,478,111) (2,398,897)
---------- ---------- ---------- ----------
Net increase in shares outstanding 897,532 2,593,185 (299,322) 878,547
Outstanding:
Beginning of year 9,940,102 7,346,917 21,826,738 20,948,191
---------- ---------- ---------- ----------
End of period 10,837,634 9,940,102 21,527,416 21,826,738
========== ========== ========== ==========
</TABLE>
See Notes To Financial Statements
45
<PAGE>
ADVANCE CAPITAL I, INC.
STATEMENT OF CHANGES IN NET ASSETS - Continued
------------------------------------------------------
<TABLE>
<CAPTION>
CORNERSTONE
STOCK
-------------------------
(Unaudited)
Six months Year
ended ended
June 30, Dec. 31,
2000 1999
---------- ----------
<S> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income $ 21,247 $ 30,640
Net realized loss on investments (65,910) (50,588)
Net unrealized gain on investments 451,927 8,043,707
---------- ----------
Net increase in net assets resulting from operations 407,264 8,023,759
Distributions to Shareholders:
Net investment income 0 (30,640)
Net realized gain on investments 0 0
---------- ----------
Total distributions to shareholders 0 (30,640)
Share Transactions:
Net proceeds from sale of shares 19,612,639 38,198,551
Reinvestment of distributions 0 30,541
Cost of shares reacquired (2,991,087) (1,182,988)
---------- ----------
Net increase derived from share transactions 16,621,552 37,046,104
---------- ----------
Net increase in net assets 17,028,816 45,039,223
NET ASSETS
Beginning of year 52,355,512 7,316,289
---------- ----------
End of period $ 69,384,328 $ 52,355,512
========== ==========
NUMBER OF SHARES
Sold 1,465,754 3,258,482
Shares issued from reinvestment of distributions 0 2,254
Reacquired (223,156) (96,076)
---------- ----------
Net increase in shares outstanding 1,242,598 3,164,660
Outstanding:
Beginning of year 3,863,940 699,280
---------- ----------
End of period 5,106,538 3,863,940
========== ==========
</TABLE>
See Notes To Financial Statements
46
<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 following
portfolios: Equity Growth Fund, Bond Fund, Balanced Fund,
Retirement Income Fund and Cornerstone Stock 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 at the close
of business. If there is no sale price, they are valued
at the last 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.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions.
When a fund engages in such transactions, it is policy to
require the custodian bank to take possession of all securities
held as collateral in support of repurchase agreement
investments. In addition, the Fund monitors the market value
of the underlying collateral on a daily basis. If the seller
defaults or if bankruptcy proceedings are initiated with
respect to the seller,the realization or retention of the
collateral may be subject to legal proceedings.
47
<PAGE>
NOTE 2. ACCOUNTING POLICIES (CONTINUED)
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 each fund's policy to meet the requirements of the
Internal Revenue Code that are applicable to regulated
investment companies and each fund intends to distribute
all of its taxable income to its shareholders. Therefore,
no federal income tax provision is provided.
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 and
Cornerstone Stock Funds, if any, are declared annually and
paid on the last business day of the year. Capital gain
distributions, if any, are declared annually and paid in
December.
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 specific identification
method for book and tax purposes. Net investment losses,
for which no carryover is permitted, are offset against
paid in capital.
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-adviser 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
48
<PAGE>
NOTE 3. TRANSACTIONS WITH AFFILIATES (CONTINUED)
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 for the first $200 million and .55% of the
average daily net assets exceeding $200 million, .50% of the average
daily net assets of the Retirement Income Fund for the first
$200 million and .4% on the average daily net assets exceeding
$200 million, and .40% of the average daily net assets of the
Bond and Cornerstone Stock Funds. For its services, TRPA is
paid a fee by MANAGEMENT equal on an annual basis to .20% of
the average daily net assets of the Equity Growth Fund and that
portion of the Balanced Fund invested in common stocks 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, Bond, Balanced,
Retirement Income and Cornerstone Stock Funds, at a rate not
to exceed .25% of each fund's average daily net assets.
The COMPANY was charged investment advisory fees of
$1,824,460 by MANAGEMENT for the six months ended June 30,
2000. The COMPANY was charged distribution fees of $784,065
by SERVICES for the six months ended June 30, 2000. At June
30, 2000 an employee retirement plan sponsored by SERVICES
owned 83,745 shares (1.9%) of the Equity Growth Fund, 309
shares (0.0%) of the Balanced Fund and 13,962 shares (0.3%)
of the Cornerstone Stock 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 plus $250 per meeting attended.
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, 2000 were as follows:
Equity Retirement Cornerstone
Growth Bond Balanced Income Stock
----------- ----------- ----------- ----------- ------------
Purchases $24,050,443 $24,049,109 $23,257,413 $14,095,128 $16,954,534
Sales 15,602,748 4,025,880 8,666,196 16,551,614 512,919
49
<PAGE>
NOTE 4. INVESTMENT PORTFOLIO TRANSACTIONS (CONTINUED)
The cost of purchases and proceeds from sales of
U.S. Government securities included above were as follows:
Equity Retirement Cornerstone
Growth Bond Balanced Income Stock
------ -------- -------- ---------- -----------
Purchases None None None None None
Sales None $959,242 None $247,188 None
Gross unrealized appreciation and depreciation of
investments for book and tax purposes as of June 30,
2000 were as follows:
Equity Retirement Cornerstone
Growth Bond Balanced Income Stock
----------- --------- ----------- ---------- -----------
Appreciation $70,070,176 $163,552 $49,045,939 $1,706,990 $13,715,730
Depreciation 5,306,177 2,254,842 10,082,228 15,714,589 4,986,822
NOTE 5. CAPITAL LOSS CARRYOVERS
For 1999, the Company utilized $299,574 of capital loss
carryovers in the Equity Growth Fund. At December 31, 1999,
capital loss carryovers and their expiration dates were as follows:
Retirement Cornerstone
Bond Income Stock
------- ---------- ----------
December 31, 2007 $59,239 $1,024,760 $50,588
NOTE 6. AUTHORIZED SHARES
The Fund has one billion authorized shares of common
stock, par value of $.001 per share. Each of the Fund's
five portfolios has 200 million shares authorized.
50
<PAGE>
ADVANCE CAPITAL I, INC.
INVESTMENT ADVISER: ADVANCE CAPITAL I, INC.
Advance Capital Management, Inc. An investment company with five funds
One Towne Square, Suite 444
Southfield, Michigan 48076
SUB-ADVISER:
(Equity Growth and Balanced Funds) EQUITY GROWTH FUND
T. Rowe Price Associates, Inc. BOND FUND
100 East Pratt Street BALANCED FUND
Baltimore, Maryland 21202 RETIREMENT INCOME FUND
CORNERSTONE STOCK FUND
DISTRIBUTOR:
Advance Capital Services, Inc.
P.O. Box 3144
Southfield, Michigan 48037
ADMINISTATOR AND TRANSFER AGENT:
Advance Capital Group, Inc.
P.O. Box 3144
Southfield, Michigan 48037
CUSTODIAN:
Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
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
Dennis D. Johnson
Harry Kalajian
Thomas L. Saeli
John C. Shoemaker
SEMI-ANNUAL REPORT
JUNE 30, 2000
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