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SEMIANNUAL REPORT - MAY 31, 1995
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DEAR ANCHOR PATHWAY INVESTOR:
We are pleased to report the results for the first half of fiscal 1995 -- the
six months ended May 31, 1995 -- for the seven series in the Anchor Pathway
Fund, which serves as the underlying investment for the American Pathway II
Variable Annuity. As you will see, all of the series gained ground. For many
series, the advance was considerable. The following commentary on the economy in
general and the investment activities of each of the series has been provided by
Capital Research and Management Company (CRMC), the investment adviser to the
Anchor Pathway Fund.
Over the six-month period, investors witnessed a trade dispute with Japan, the
devaluation of the Mexican peso, and derivative-based losses by public and
private institutions both here and abroad. While these developments affected
certain foreign markets, they were largely shrugged off by U.S. investors, who
chose to focus their attention on reports of strong corporate earnings, healthy
exports, a decline in intermediate- and long-term interest rates and continued
low inflation.
The U.S. stock and bond markets also have been buoyed by fresh hopes that a
newly elected Congress would slow the rate of government spending, cut the
federal budget deficit and provide additional incentives to save and invest.
While achieving these ends would indeed be positive for the financial markets in
the years to come, changes in the status quo often prove unsettling over the
short term. For now, of course, it remains to be seen what legislation actually
will be signed into law.
While CRMC remains optimistic about the long-term prospects for the series in
the fund, the money manager points out that after a brisk advance in stock or
bond prices, it is not unusual for markets to pause or retrace part of their
earlier gains. It is also worth noting that the current bull market in stocks in
the U.S. appears to be in a very mature phase. After all, it has been 56 months
since the unmanaged Standard & Poor's 500 Composite Index experienced a
correction of 10% or more. Until now, the longest interval between such
corrections was less than four years, and the average is about one and a half
years. As always, CRMC believes it is important to maintain a diversified
portfolio and a long-term perspective.
THE GROWTH SERIES posted a 18.11% six-month gain. The series invests in a wide
range of companies that appear to offer superior opportunities for long-term
growth of capital. Throughout the period, strong consumer and business demand
for high-tech products lifted the stock prices of companies such as Intel, LSI
Logic, Adobe Systems and Silicon Graphics. Each of these issues is among the
series' 10 largest holdings; altogether, they account for more than 12% of the
series' net assets. Media/entertainment companies such as News Corp, Walt Disney
and Capital Cities/ABC also appear among the 10 largest holdings. Technology and
media/entertainment have been prominent themes in the series for many years and
have made significant contributions to the series' longer term results. During
the past six months, 21 holdings were eliminated from the portfolio while 24
were added. Many of those that were sold did not live up to expectations or,
conversely, did better than CRMC felt they deserved, so that the combination of
valuation and future prospects was not as attractive. The series typically
continues to hold out-of-favor stocks if their long-term outlook remains
promising.
THE INTERNATIONAL SERIES had a gain of 4.5% over the past six months. During
this period, most major non-U.S. markets posted relatively modest advances. In
many cases these advances were augmented by the strengthening of foreign
currencies against the U.S. dollar. While such a strengthening meant
non-dollar-denominated assets were worth more in U.S. dollars, its effect on the
profitability of individual companies overseas was often more complex. For
instance, a higher German deutsche mark had the effect of making German exports
more expensive. This was probably a factor in helping to restrain German stock
prices, which rose an average of 1.2% in local currency and 12.4% in U.S.
dollars, as measured by the Morgan Stanley Capital International Perspective.
The series was helped by the fact that it had relatively few investments in
Japan, where the stock prices declined 17.0% in local currency and 2.9% in U.S.
dollars. However, the series was hurt by its investments in Latin American
markets, which fell sharply following the devaluation of the Mexican peso last
December. The latest six-month period served as a reminder that emerging markets
can be highly volatile. Still, CRMC believes that
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1
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carefully researched and selected investments in the common stocks of companies
domiciled in developing countries can -- within reason and in
moderation -- contribute to the series' long-term investment results. At the end
of May, 57% of the series' net assets was invested in European stocks; Asia and
the Pacific region accounted for 24% of net assets; investments in the Americas
(including Canada) and other areas accounted for approximately 6%, while 13% was
held in the form of cash and equivalents. The series does not invest in the U.S.
markets.
THE GROWTH-INCOME SERIES increased 16.3% during the past six months. Many of
the series' interest-sensitive investments, which were adversely affected by
rising rates last year, rebounded strongly as interest rates once again moved
down. One such area -- banking -- with approximately 8% of series assets, was
the largest industry sector in the series as of May 31. U.S. companies with
significant exports or operations abroad were another area of strength for the
series. These companies tended to be helped by changes in currency exchange
rates that made their products more competitive abroad and increased the value
of overseas earnings converted back to U.S. dollars. Of the 166 stocks held over
the six-month period, 153 advanced in price and 13 declined. Top gainers
included Texas Instruments and Bank of New York. The series, like the other
equity series in the Anchor Pathway Fund, currently maintains a cash position to
help cushion any market decline and take advantage of buying opportunities as
they emerge.
THE ASSET ALLOCATION SERIES gained 16.4% over the past six months. This series
is designed to help contractholders benefit from major market cycles without
having to make asset allocation decisions. The entire portfolio is managed as
though it constitutes the complete investment program of a prudent investor. The
equity portion of the series, which represented about 68.1% of the portfolio on
May 31, is similar to a conservative growth and income portfolio. The fixed-
income portion of the series, which made up nearly one-quarter of the portfolio,
is equivalent to a quality-oriented bond fund. The remaining 9.8% of the series'
assets was in short-term securities. Because the series holds stocks, bonds and
money market instruments, it is likely to offer a greater opportunity for
stability than a less-diversified portfolio. Over the past six months, the
series had the good fortune to add to its equity investments, most notably in
the retail and financial services areas. Many of the series' largest individual
stock holdings once again gained significant ground. They include: American Home
Products, the series' largest individual holding; IBM, Warner-Lambert, Eli
Lilly; and Rockwell International. Of the 102 stocks held over the six-month
period, all but Long Island Lighting appreciated in price.
THE HIGH-YIELD BOND SERIES rose 12.3% in the past six months. During that
time, high-yielding corporate bonds provided good returns, largely the result of
a general decline in interest rates. CRMC searches for good investments in
individual companies, making its investment approach similar to that of a stock
fund. Indeed, because of the price fluctuations inherent in the high-yield
market, this series may be best suited for people who feel comfortable with the
risks and rewards traditionally associated with equity-type securities. The
adviser makes decisions with a view toward the long-term and uses intensive
research to find individual firms that appear to be undervalued by the market.
THE U.S. GOVERNMENT/AAA-RATED SECURITIES SERIES gained 10.0% in the past six
months. Following one of the worst bond markets on record in fiscal 1994,
fixed-income markets rebounded strongly as the Federal Reserve achieved its
desired slowdown in the rate of economic growth. Because slower growth tends to
reduce demands for credit and inflationary pressures, longer-term interest rates
declined. Consequently, bond prices (which move inversely to interest rates)
rallied. This left investors in the series with a measure of capital
appreciation as well as income during the first fiscal half. The series is
invested in top-rated fixed-income obligations, many of which are backed by the
full faith and credit of the U.S. government for timely repayment of principal
and interest. While the bulk of these assets are in U.S. Treasury and government
agency securities, a quick look through the portfolio listing will show bonds of
various types. These include privately originated mortgage-related securities,
bonds of international development authorities and asset-backed securities
consisting of credit card receivables. The composition of this portfolio, as in
other series in the fund, is a result of a research-driven, value-oriented
approach that focuses on each security on a case-by-case basis.
THE CASH MANAGEMENT SERIES gained 2.7% over the past six months. The series
continued to benefit from the Federal Reserve Board's efforts to tighten credit
by raising short-term interest
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rates. Last February 1, the Fed raised the federal funds rate, which is the rate
banks charge each other for overnight loans, for the seventh time in a 12-month
span. Because the series holds short-term securities composed of commercial
paper and federal agency discount notes, it was well positioned to pass on
increases in short-term rates. CRMC's policy of selecting only the highest-grade
investments remains firm. All of the series' securities are assigned the top
rating from Standard & Poor's and Moody's Investors Service, two major
independent credit-rating agencies, or are determined to be of comparable
quality by CRMC. The series continues to offer an alternative to investors who
wish to temporarily reduce their stock or bond investments, or for those using
the series as a base for making regular investments into other series.
We appreciate your support and look forward to reporting to you again
following the close of the fiscal year on November 30. In the meantime, the
investment adviser will continue to scan the economic and investment horizons
and work hard to help you realize your objectives.
Sincerely,
[SIGNATURE]
Eli Broad
Chairman, President and Chief Executive Officer,
Anchor National Life Insurance Company
July 13, 1995
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Performance figures quoted are for the Anchor Pathway Fund; therefore, they are
not net of the fees and charges associated with the variable annuity. Past
performance is no guarantee of future results.
Investments in stocks and bonds are subject a risk, including stock market and
interest rate fluctuations. Investments in non-U.S. stocks and bonds are subject
to additional risks, including political and social instability, differing
securities regulations and accounting standards and limited public information.
High-yield bonds tend to be subject to greater price swings than higher-rated
bonds and, of course, payment of interest and principal is not assured. Money
market instruments generally offer stability and income, but an investment in
these securities, like investments in the other series, is not guaranteed.
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ANCHOR PATHWAY FUND
GROWTH SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK -- 90.7% SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL EQUIPMENT -- 33.6%
Data Processing & Reproduction -- 13.0%
Adobe Systems, Inc. ............................................... 315,000 $ 16,380
Apple Computer, Inc. .............................................. 32,000 1,330
COMPAQ Computer Corp.+............................................. 90,000 3,521
Cyrix Corp.+....................................................... 50,000 1,288
Data General Corp.+................................................ 100,000 800
Dell Computer Corp.+............................................... 77,000 3,879
Electronic Arts+................................................... 110,000 2,833
International Business Machines Corp. ............................. 47,000 4,383
Lotus Development Corp.+........................................... 150,000 4,575
Mentor Graphics Corp.+............................................. 270,000 4,590
Microsoft Corp.+................................................... 40,000 3,387
Oracle Systems Corp.+.............................................. 287,500 9,991
Seagate Technology+................................................ 280,000 10,045
Silicon Graphics, Inc.+............................................ 710,000 27,601
Structural Dynamics Research Corp.+................................ 150,000 2,072
Sybase, Inc.+...................................................... 300,000 6,300
Tandem Computers, Inc.+............................................ 250,000 3,312
Electronic Components -- 17.3%
Advanced Micro Devices, Inc.+...................................... 20,000 658
Analog Devices, Inc.+.............................................. 225,000 7,003
Ericsson (L.M.) Telephone Co. ADR.................................. 80,000 5,875
Intel Corp. ....................................................... 413,800 46,449
LSI Logic Corp.+................................................... 390,000 26,227
Micron Technology, Inc. ........................................... 300,000 13,387
National Semiconductor Corp.+...................................... 225,000 5,625
Newbridge Networks Corp.+.......................................... 85,000 3,007
Park Electrochemical Corp. ........................................ 93,600 3,253
Rogers Corp.+...................................................... 54,600 2,962
SCI Systems, Inc.+................................................. 415,000 8,611
Texas Instruments, Inc. ........................................... 147,800 17,089
Xilinx, Inc.+...................................................... 10,000 843
Electronic Instruments -- 2.2%
Applied Materials, Inc.+........................................... 236,000 18,172
Energy Equipment -- 0.8%
Schlumberger Ltd. ................................................. 105,000 6,825
Industrial Components -- 0.3%
Noble Affiliates, Inc. ............................................ 75,500 2,048
---------
274,321
---------
CONSUMER GOODS -- 6.3%
Appliances & Household Durables -- 0.5%
Mohawk Industries, Inc.+ .......................................... 270,000 4,050
Beverages & Tobacco -- 1.2%
PepsiCo, Inc. ..................................................... 80,000 3,920
Philip Morris Cos., Inc. .......................................... 80,000 5,830
</TABLE>
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<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
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<S> <C> <C>
CONSUMER GOODS (continued)
Food & Household Products -- 0.1%
Ralston Purina Co. ................................................ 20,000 $ 1,005
Health & Personal Care -- 3.2%
Alpha Beta Technology, Inc.+....................................... 70,000 438
Bausch & Lomb, Inc. ............................................... 20,000 813
Biogen, Inc.+...................................................... 28,000 1,162
Cordis Corp.+...................................................... 118,500 8,176
Forest Labs, Inc.+................................................. 131,000 5,780
Genetics Institute, Inc.+.......................................... 80,000 2,940
Omnicare, Inc. .................................................... 80,000 3,800
Paragon Trade Brands, Inc.+........................................ 47,200 643
Perrigo Co.+....................................................... 15,000 165
Tambrands, Inc. ................................................... 20,000 857
Upjohn Co. ........................................................ 40,000 1,455
Recreation & Other Consumer Products -- 0.9%
Duracell International, Inc. ...................................... 25,000 1,081
Hasbro, Inc. ...................................................... 45,000 1,587
Mattel, Inc. ...................................................... 174,647 4,366
Textiles & Apparel -- 0.4%
Phillips-Van Heusen Corp. ......................................... 210,000 3,203
---------
51,271
---------
ENERGY -- 0.4%
Energy Sources -- 0.4%
Murphy Oil Corp. .................................................. 75,000 3,281
---------
FINANCE -- 7.3%
Banking -- 3.3%
Banc One Corp. .................................................... 229,625 7,979
Baybanks, Inc. .................................................... 23,200 1,682
Commerce Bancshares, Inc. ......................................... 134,500 4,203
Huntington Bancshares, Inc. ....................................... 140,000 2,748
Mercantile Bancorp. ............................................... 232,500 9,271
Northern Trust Corp. .............................................. 40,000 1,550
Financial Services -- 0.7%
Federal National Mortgage Association.............................. 55,000 5,115
Student Loan Marketing Association................................. 10,000 475
Insurance -- 3.3%
American Reinsurance Corp.+........................................ 40,000 1,490
EXEL Ltd. ......................................................... 135,000 6,311
NAC Reinsurance Corp. ............................................. 120,000 3,525
NYMAGIC, Inc. ..................................................... 120,000 1,965
TIG Holdings, Inc. ................................................ 115,000 2,703
Transatlantic Holdings, Inc. ...................................... 110,000 6,985
Trenwick Group, Inc. .............................................. 83,800 3,645
---------
59,647
---------
MATERIALS -- 2.9%
Chemicals -- 2.8%
Great Lakes Chemical Corp. ........................................ 95,000 5,795
Loctite Corp. ..................................................... 100,000 4,988
Lubrizol Corp. .................................................... 39,000 1,360
McWhorter Technologies, Inc.+...................................... 25,000 381
Raychem Corp. ..................................................... 145,000 5,274
Valspar Corp. ..................................................... 136,700 5,041
</TABLE>
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<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products & Paper -- 0.1%
Rayonier, Inc. .................................................... 30,000 $ 1,031
---------
23,870
---------
SERVICES -- 39.0%
Broadcasting & Publishing -- 13.1%
Adelphia Communications Corp.+..................................... 205,000 2,050
BHC Communications, Inc.+.......................................... 5,821 442
Cablevision Systems Corp., Class A+................................ 100,000 5,988
Capital Cities/ABC, Inc. .......................................... 120,000 11,580
CBS, Inc. ......................................................... 45,195 3,028
Comcast Corp., Class A Special+.................................... 207,500 3,631
Gaylord Entertainment Co., Class A................................. 215,250 4,789
Lin Television Corp. .............................................. 49,100 1,768
New York Times Co. ................................................ 100,000 2,263
News Corp., Ltd. ADR............................................... 800,000 17,300
Tele-Communications, Inc.+......................................... 625,525 13,214
Time Warner, Inc. ................................................. 485,000 19,218
Turner Broadcasting Systems, Inc., Class B......................... 715,000 14,211
Viacom, Inc. Class B+.............................................. 155,000 7,227
Business & Public Services -- 12.5%
ADT Ltd.+.......................................................... 400,000 4,550
Air & Water Technologies Corp., Class A+........................... 165,000 990
America Online, Inc. .............................................. 100,000 3,562
Avery Dennison Corp. .............................................. 100,000 4,125
Bay Networks, Inc.+................................................ 225,000 8,212
BHA Group, Inc. ................................................... 110,000 1,458
Columbia Healthcare Corp. ......................................... 88,750 3,628
CUC International, Inc.+........................................... 295,000 10,841
Ecolab, Inc. ...................................................... 100,000 2,537
Federal Express Corp.+............................................. 175,000 10,478
FHP International Corp.+........................................... 385,000 8,470
General Motors Corp., Class E...................................... 155,000 6,587
Humana, Inc.+...................................................... 60,000 1,268
Oxford Health Plans, Inc.+......................................... 129,600 6,545
Pacificare Health Systems, Inc.+................................... 35,000 2,319
Pitney Bowes, Inc. ................................................ 65,000 2,405
U.S. HealthCare, Inc. ............................................. 40,000 1,243
United Healthcare Corp. ........................................... 255,000 9,499
Value Health, Inc.+................................................ 50,000 1,613
WMX Technologies, Inc. ............................................ 430,000 11,717
Leisure & Tourism -- 5.7%
Circus Circus Enterprises, Inc.+................................... 120,000 4,005
Disney (Walt) Co. ................................................. 410,000 22,806
Host Marriott Corp.+............................................... 280,000 2,975
Luby's Cafeterias, Inc. ........................................... 100,000 2,038
Marriott International, Inc. ...................................... 230,000 7,791
Mirage Resorts, Inc.+.............................................. 100,000 2,988
Promus Cos., Inc.+................................................. 100,000 4,187
Merchandising -- 2.4%
Barnes & Noble, Inc.+.............................................. 140,900 4,051
Circuit City Stores, Inc. ......................................... 20,000 550
Gap, Inc. ......................................................... 20,000 688
Home Shopping Network, Inc.+....................................... 250,000 1,750
Shopko Stores, Inc. ............................................... 110,100 1,184
Spiegel, Inc., Class A............................................. 366,600 4,124
</TABLE>
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6
<PAGE> 8
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES (continued)
Merchandising (continued)
Staples, Inc.+..................................................... 150,000 $ 4,237
Toys R Us, Inc.+................................................... 110,000 2,777
Telecommunications -- 3.4%
AirTouch Communications, Inc.+..................................... 175,000 4,769
Associated Group, Inc., Class A.................................... 25,000 422
Associated Group, Inc., Class B.................................... 25,000 437
Cellular Communications Puerto Rico, Inc.+......................... 25,000 766
Lin Broadcasting Corp.+............................................ 13,900 1,722
MCI Communications Corp. .......................................... 385,000 7,796
United States Cellular Corp.+...................................... 52,000 1,495
Vanguard Cellular Systems, Inc.+................................... 426,300 10,284
Transportation: Airlines -- 1.7%
AMR Corp.+......................................................... 70,000 4,778
Delta Air Lines, Inc. ............................................. 10,000 651
Southwest Airlines Co. ............................................ 395,000 8,739
Transportation: Rail & Road -- 0.2%
Southern Pacific Rail Corp. ....................................... 125,000 1,985
---------
318,751
---------
OTHER COMMON STOCK -- 1.2%......................................... 9,895
---------
TOTAL COMMON STOCK (cost: $480,287)................................ 741,036
---------
<CAPTION>
PREFERRED STOCK -- 1.6%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES -- 1.6%
Broadcasting & Publishing -- 1.0%
News Corp. Ltd. ADR................................................ 400,000 7,850
Telecommunications -- 0.6%
Cellular Communications, Inc. Cv Preferred......................... 115,000 5,319
---------
13,169
---------
TOTAL PREFERRED STOCK (cost: $5,721)............................... 13,169
---------
TOTAL INVESTMENT SECURITIES (cost: $486,008)....................... 754,205
---------
<CAPTION>
PRINCIPAL
AMOUNT
(IN
SHORT-TERM SECURITIES -- 7.2% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 7.2%
Associates Corp. North America 6.12% due 6/01/95 .................. $ 13,320 13,320
Commercial Credit Group, Inc. 5.95% due 7/05/95 ................... 20,000 19,888
National Rural Utilities Cooperative Finance Corp. 5.94% due
6/20/95 ......................................................... 10,000 9,969
National Rural Utilities Cooperative Finance Corp. 5.94% due
6/21/95 ......................................................... 5,300 5,282
Vermont American Corp. 5.93% due 6/05/95 .......................... 5,900 5,896
Xerox Corp. 5.95% due 6/23/95 ..................................... 4,000 3,985
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TOTAL SHORT-TERM SECURITIES (cost: $58,340)........................ 58,340
---------
TOTAL INVESTMENTS --
(cost: $544,348) 99.5% 812,545
Other assets less liabilities -- 0.5 4,405
------ ---------
NET ASSETS -- 100.0% $816,950
====== =========
</TABLE>
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+ Non-income producing securities
ADR - American Depositary Receipt
See Notes to Financial Statements
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ANCHOR PATHWAY FUND
INTERNATIONAL SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK, PREFERRED STOCK & WARRANTS -- 85.6% SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.6%
YPF Sociedad Anonima SA ADR (Energy)................................. 73,000 $ 1,478
---------
AUSTRALIA -- 6.5%
Australia & New Zealand Bank Group (Finance)......................... 919,657 3,303
Coca-Cola Amatil Ltd. (Consumer Goods)#.............................. 389,437 2,319
Gio Australia Holdings (Finance)..................................... 640,639 1,270
John Fairfax Holdings (Services)..................................... 260,000 508
Lend Lease Corp. Ltd. (Multi-industry)............................... 86,188 1,127
News Corp., Ltd. Preferred ADR (Services)............................ 33,300 653
News Corp., Ltd. ADR (Services)...................................... 66,600 1,440
Orbital Engine Corp. (Capital Equipment)+............................ 162,134 151
TNT Ltd. (Services).................................................. 486,676 703
TNT Ltd., Cv Preferred (Services)#................................... 507,000 757
TNT Ltd., Cv Preferred (Services).................................... 902,900 1,349
Western Mining Corp. Holdings Ltd. ADS (Materials)................... 100,000 532
Westpac Banking Corp. (Finance)...................................... 331,757 1,218
---------
15,330
---------
AUSTRIA -- 0.6%
Virginia Technologies AG (Capital Equipment)......................... 11,700 1,345
---------
BELGIUM -- 1.3%
Groupe Bruxelles Lambert SA NV (Multi-industry)...................... 17,000 2,321
Petrofina SA (Consumer Staples)...................................... 2,300 691
---------
3,012
---------
BERMUDA -- 0.6%
Mandarin Oriental (Services)......................................... 1,288,153 1,546
---------
BRAZIL -- 0.7%
CESP-Companhia Energetica de Sao Paulo ADS (Energy).................. 30,000 353
CESP-Companhia Energetica de Sao Paulo ADR (Energy)#................. 8,416 99
CESP-Companhia Energetica de Sao Paulo ADR (Energy).................. 53,600 630
Electrobras (Capital Equipment)...................................... 1,900,000 532
---------
1,614
---------
CANADA -- 2.2%
Bank Montreal Quebec (Finance)....................................... 37,000 777
Canadian Imperial Bank of Commerce (Finance)......................... 45,000 1,092
Falconbridge Ltd. (Materials)#....................................... 33,000 533
Magna International Class A (Capital Equipment)...................... 10,000 380
Rogers Cantel Mobile Communications, Inc., Class B (Services)+....... 15,000 362
Rogers Communications, Inc., Class B (Services)+..................... 100,200 1,143
Teck Corp. Class B (Capital Equipment)............................... 40,000 807
---------
5,094
---------
DENMARK -- 1.6%
Tele Denmark Class B ADR (Capital Equipment)......................... 130,000 3,705
---------
</TABLE>
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<PAGE> 10
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK, PREFERRED STOCK & WARRANTS (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
FINLAND -- 2.4%
Kansallis-Osake-Pankki (Finance)..................................... 700,000 $ 741
Nokia (AB) Oy Corp. Series K (Multi-industry)........................ 38,000 1,737
Nokia (AB) Oy Corp. Series A (Multi-industry)........................ 32,000 1,485
Repola (Materials)................................................... 84,000 1,699
---------
5,662
---------
FRANCE -- 6.5%
Canal Plus (Services)................................................ 3,746 501
Cie de St. Gobain (Materials)........................................ 11,017 1,379
Credit Local de France (Finance)..................................... 7,000 615
Europe 1 (Services).................................................. 1,314 342
Eurotunnel/Euro SA (Services)+....................................... 115,200 327
Havas SA (Services).................................................. 5,776 470
Michelin (cie Gle), Class B (Capital Equipment)...................... 84,000 3,831
Peugeot SA (Consumer Goods).......................................... 20,000 3,019
Poliet (Materials)................................................... 8,804 836
Renault (Consumer Goods)#............................................ 41,200 1,343
Sidel (Capital Equipment)............................................ 6,000 1,768
Total SA (Energy).................................................... 13,246 821
---------
15,252
---------
GERMANY -- 5.1%
BASF AG (Materials).................................................. 1,200 257
Bayer AG, Bearer (Materials)......................................... 1,400 338
Bayerische Motoren Werke AG (Consumer Goods)......................... 6,072 3,272
Bayerische Motoren Werke AG NV Preferred (Consumer Goods)............ 2,604 1,010
Bayer Vereinsbank (Finance).......................................... 62 18
Daimler-Benz AG (Consumer Goods)..................................... 3,920 1,899
Deutsche Bank AG (Finance)........................................... 305 149
GEA AG (Capital Equipment)........................................... 875 328
GEA AG NV Preferred (Capital Equipment).............................. 1,250 414
Hoechst AG (Materials)............................................... 400 86
Mannesmann AG (Capital Equipment).................................... 4,800 1,405
Munchener Ruckvers (Finance)......................................... 968 1,925
Munchener Ruckvers Warrants (Finance)+............................... 125 14
Thyssen AG (Materials)............................................... 4,500 849
---------
11,964
---------
HONG KONG -- 5.2%
Cathay Pacific Airways Ltd. (Services)............................... 1,498,000 2,179
China Light & Power Co., Ltd. (Energy)............................... 90,400 494
Cross Harbour Tunnel (Services)...................................... 261,000 513
Hong Kong Electric Holdings (Energy)................................. 1,032,000 3,669
Hutchison Whampoa (Multi-industry)................................... 150,000 758
Johnson Electric Holdings Ltd. (Capital Equipment)................... 110,000 245
Pioneer Industries International (Finance)........................... 404,000 280
Sing Tao (Services).................................................. 689,200 450
Siu Fung Ceramics (Capital Equipment)................................ 892,000 129
Sun Hung Kai Properties Ltd. (Finance)............................... 100,000 724
Swire Pacific Ltd. Class A (Multi-industry).......................... 125,000 966
Television Broadcasting Ltd. (Services).............................. 497,000 1,895
---------
12,302
---------
INDONESIA -- 0.3%
Bank International Indonesia (Finance)............................... 350,000 817
---------
</TABLE>
---------------------
9
<PAGE> 11
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK, PREFERRED STOCK & WARRANTS (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
IRELAND -- 0.8%
Independent Newspapers (Services).................................... 195,600 $ 916
Irish Life PLC (Finance)............................................. 280,000 934
---------
1,850
---------
ISRAEL -- 0.3%
Scitex Corp. Ltd. (Services)......................................... 28,000 609
---------
ITALY -- 1.6%
Pirelli SPA (Capital Equipment)+..................................... 240,000 344
Telecom Italia SpA (Services)........................................ 881,950 2,310
Telecom Italia SpA Risp (Services)................................... 64,800 132
STET (Services)...................................................... 120,000 345
STET Risp (Services)................................................. 240,000 550
---------
3,681
---------
JAPAN -- 5.4%
Amway Japan Ltd. ADS (Consumer Goods)................................ 36,000 603
Banyu Pharm (Services)............................................... 114,000 1,291
Chain Store Okuwa (Services)......................................... 20,000 383
Hitachi Ltd. (Capital Equipment)..................................... 28,000 270
Ito-Yokado Co. (Miscellaneous)....................................... 10,000 529
Itochu Corp. Ltd. (Services)......................................... 120,000 736
Mitsubishi Corp. (Consumer Goods).................................... 65,000 743
Nintendo Co., Ltd. (Consumer Goods).................................. 23,800 1,434
Nippon Telegraph & Telecommunications Corp. (Services)............... 70 579
Nippon Yusen (Services).............................................. 79,000 470
Sony Corp. (Consumer Goods).......................................... 22,000 1,061
Sumitomo Chemical Co., Ltd. (Materials).............................. 177,000 906
Suzuki Motor Corp. (Consumer Goods).................................. 144,000 1,438
Tokyo Broadcasting Systems (Services)................................ 27,000 431
Toyota Motor Corp. (Consumer Goods).................................. 95,000 1,841
---------
12,715
---------
KOREA, REPUBLIC OF -- 0.9%
Korea Electric Power Corp. (Energy).................................. 39,000 1,461
Korea Electric Power Corp. ADR (Energy).............................. 26,000 582
---------
2,043
---------
LUXEMBOURG -- 0.3%
Safra Republic Holdings, Inc. (Finance).............................. 10,000 830
---------
MEXICO -- 1.8%
Cemex SA-Series A (Materials)........................................ 161,250 495
Cifra SA de Cv-Series C (Services)................................... 195,500 242
Grupo Financiero Banamex-Accival SA de Cv-Series B (Finance)......... 324,000 485
Grupo Televisa SA de Cv ADR (Services)............................... 20,000 325
Telefonos de Mexico SA ADR (Services)................................ 95,200 2,677
---------
4,224
---------
</TABLE>
---------------------
10
<PAGE> 12
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK, PREFERRED STOCK & WARRANTS (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 5.8%
ABN Amro Holdings NV (Finance)....................................... 83,726 $ 3,165
Akzo Nobel NV (Materials)............................................ 12,000 1,460
DSM NV (Materials)................................................... 15,919 1,354
Elsevier NV (Services)............................................... 80,000 926
International Nederlanden Warrants (Finance)+........................ 300,000 668
Philips Electronics (Consumer Goods)................................. 16,000 637
PolyGram NV ADR (Consumer Goods)..................................... 45,000 2,627
Telegraaf Holding (Services)......................................... 5,800 708
Vereenigde Ned Uitgevers (Services).................................. 13,000 1,544
Wolters Kluwer (Services)............................................ 6,177 517
---------
13,606
---------
NEW ZEALAND -- 4.2%
Brierley Investment Ltd. (Multi-industry)............................ 4,613,019 3,404
Carter Holt Harvey Ltd. (Materials).................................. 240,197 605
Fletcher Challenge (Capital Equipment)............................... 530,000 1,409
Fletcher Challenge ADR (Capital Equipment)........................... 12,450 168
Telecom Corp. of New Zealand (Services).............................. 1,019,880 4,068
Telecom Corp. of New Zealand ADS (Services).......................... 4,600 296
---------
9,950
---------
NORWAY -- 1.6%
Orkla AS (Consumer Goods)............................................ 88,000 3,700
---------
PAKISTAN -- 0.1%
Pakistan Telecommunication (Services)#+.............................. 2,400 264
---------
PHILIPPINES -- 0.4%
Philippine Long Distance Cv Preferred Series III (Services).......... 10,000 655
Philippine National Bank (Finance)................................... 26,146 309
---------
964
---------
SINGAPORE -- 0.7%
Sembawang Shipyard Ltd. (Capital Equipment).......................... 119,000 820
Singapore Airlines Ltd. (Services)................................... 88,000 840
---------
1,660
---------
SPAIN -- 2.6%
Autopistas CESA (Services)........................................... 210,000 1,973
Banco Bilbao Vizcaya ADR (Finance)................................... 30,000 866
Banco Popular Espanol (Finance)...................................... 6,000 900
Corporacion Mapfre SA (Finance)...................................... 11,615 549
Iberdrola SA (Energy)................................................ 142,000 995
Telefonica de Espana SA ADR (Services)............................... 24,000 960
---------
6,243
---------
SWEDEN -- 6.3%
Asea AB-Series A (Capital Equipment)................................. 24,500 2,080
Asea AB-Series B (Capital Equipment)................................. 22,000 1,859
Astra AB-Series A (Services)......................................... 92,000 2,696
Atlas Copco AB-Series A (Capital Equipment).......................... 100,000 1,458
Electrolux AB-Series B (Consumer Goods).............................. 31,600 1,460
Ericsson LM Telephone Co. Series B (Capital Equipment)............... 25,500 1,825
Ericsson LM Telephone Co. Class B Cv ADR (Capital Equipment)......... 3,500 9
Kinnevik-Series A (Finance).......................................... 23,900 723
Kinnevik-Series B (Multi-industry)................................... 15,000 452
Sandvik AB-Class B (Capital Equipment)............................... 32,000 561
Volvo AB-Series B (Consumer Goods)................................... 95,000 1,670
---------
14,793
---------
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK, PREFERRED STOCK & WARRANTS (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND -- 3.8%
BBC Brown Boveri, Bearer (Capital Equipment)......................... 2,363 $ 2,413
Ciba-Geigy AG, Nominative Shares (Materials)......................... 2,635 1,870
Holderbank Financiere Glarus, Bearer (Materials)..................... 3,792 3,017
Nestle SA (Consumer Goods)........................................... 1,000 1,010
Sika Finanz AG, Bearer (Capital Equipment)........................... 2,166 687
---------
8,997
---------
THAILAND -- 0.5%
Bangkok Bank Ltd. (Finance).......................................... 57,025 624
Bank Of Ayudhya Ltd. (Finance)....................................... 126,700 678
---------
1,302
---------
UNITED KINGDOM -- 14.6%
British Airways ADR (Services)....................................... 15,000 986
British Airways PLC (Services)....................................... 145,000 949
British Sky Broadcast Group PLC ADR (Services)+...................... 58,500 1,492
British Steel PLC (Materials)........................................ 585,000 1,637
Cable & Wireless PLC (Services)...................................... 137,804 926
Cordiant PLC (Services).............................................. 440,997 736
Daily Mail & General Trust, NV - Class A (Services).................. 35,000 656
English China Clays (Materials)...................................... 255,000 1,551
Forte PLC (Services)................................................. 790,858 2,901
Hazlewood Foods PLC (Consumer Goods)................................. 300,000 505
Kwik-Fit Holdings PLC (Services)..................................... 360,000 898
News International PLC (Services).................................... 136,000 648
Pearson PLC (Multi-industry)......................................... 120,000 1,159
Pilkington PLC (Materials)........................................... 500,000 1,465
Rank Organisation PLC (Services)..................................... 175,000 1,219
Reckitt & Colman (Consumer Goods).................................... 288,537 3,010
Reuters Holdings PLC (Services)...................................... 208,000 1,556
Rolls Royce PLC (Consumer Goods)..................................... 555,555 1,659
Scottish Power PLC (Energy).......................................... 120,000 636
Securicor Group PLC NV (Services).................................... 38,000 599
Smith (WH) Group (Services).......................................... 160,000 893
Telewest Communications PLC ADR (Services)+.......................... 71,000 1,837
Tesco PLC (Services)................................................. 400,000 1,880
Thames Water PLC (Services).......................................... 116,921 947
Thorn EMI PLC (Consumer Goods)....................................... 103,000 2,033
Vodafone Group PLC (Services)........................................ 105,801 348
Vodafone Group PLC ADR (Services).................................... 18,000 605
Welsh Water (Services)............................................... 68,000 693
---------
34,424
---------
OTHER COMMON STOCK -- 0.3%........................................... 751
---------
TOTAL COMMON STOCK, PREFERRED STOCK, & WARRANTS
(cost: $174,890)................................................... 201,727
---------
<CAPTION>
PRINCIPAL
AMOUNT
[DENOMINATED
IN LOCAL
CURRENCY]
(IN
BONDS & NOTES -- 1.5% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.1%
Michelin(cie Gle) 2.50% 2001......................................... 5 253
---------
HONG KONG -- 0.4%
Bangkok Bank Public Ltd. 3.25% 2004#................................. 1,000 1,020
---------
</TABLE>
---------------------
12
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
[DENOMINATED
IN LOCAL
CURRENCY] VALUE
(IN (IN
BOND & NOTES (continued) THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW ZEALAND -- 0.7%
Brierley Investment 9.00% 1998....................................... 253 $ 171
New Zealand Government 9.00% 1996.................................... 2,000 1,341
---------
1,512
---------
FINLAND -- 0.3%
Kymmene Corp. zero coupon 2043....................................... 2,800 698
---------
TOTAL BONDS & NOTES (cost: $3,205)................................... 3,483
---------
TOTAL INVESTMENT SECURITIES (cost: $178,095)......................... 205,210
---------
<CAPTION>
PRINCIPAL
AMOUNT
(IN
SHORT-TERM SECURITIES -- 10.4% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 10.4%
Abn Amro North America 5.94% due 7/12/95 ............................ $ 4,600 4,569
Exxon Imperial U.S., Inc. 5.97% due 6/09/95 ......................... 4,600 4,594
Siemens Corp. 5.93% due 6/02/95 ..................................... 4,000 3,999
Sony Capital Corp. 5.94% due 6/13/95 ................................ 5,300 5,290
UBS Finance Delaware, Inc. 6.15% due 6/01/95 ........................ 6,100 6,100
---------
TOTAL SHORT-TERM SECURITIES (cost: $24,552).......................... 24,552
---------
TOTAL INVESTMENTS --
(cost: $202,647) 97.5% 229,762
Other assets less liabilities -- 2.5 5,992
------ ---------
NET ASSETS -- 100.0% $235,754
====== =========
</TABLE>
--------------
+ Non-income producing securities
# Resale restricted to qualified institutional buyers
ADR - American Depositary Receipt
ADS - American Depositary Shares
See Notes to Financial Statements
---------------------
13
<PAGE> 15
- ---------------------
ANCHOR PATHWAY FUND
GROWTH-INCOME SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK -- 89.8% SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL EQUIPMENT -- 14.5%
Aerospace & Military Technology -- 2.8%
Boeing Co. ........................................................ 200,000 $ 11,775
Coltec Industries, Inc.+........................................... 60,000 1,065
General Motors Corp., Class H...................................... 76,800 3,130
Litton Industries, Inc.+........................................... 91,000 3,503
United Technologies Corp. ......................................... 45,100 3,422
Data Processing & Reproduction -- 3.2%
Apple Computer, Inc. .............................................. 60,000 2,494
COMPAQ Computer Corp.+............................................. 50,000 1,956
International Business Machines Corp. ............................. 115,000 10,724
Novell, Inc.+...................................................... 40,000 772
Xerox Corp. ....................................................... 95,000 10,771
Electrical & Electronics -- 1.1%
General Electric Co. .............................................. 130,000 7,540
General Signal Corp. .............................................. 30,000 1,110
Hubbell, Inc. ..................................................... 105 6
Electronic Components -- 1.3%
Intel Corp. ....................................................... 25,000 2,807
Johnson Controls, Inc. ............................................ 20,000 1,145
Micron Technology, Inc. ........................................... 80,000 3,570
Motorola, Inc. .................................................... 40,000 2,395
Texas Instruments, Inc. ........................................... 10,000 1,156
Energy Equipment -- 1.2%
Cooper Industries, Inc. ........................................... 50,000 1,850
Schlumberger Ltd. ................................................. 70,000 4,550
Western Atlas, Inc.+............................................... 78,500 3,542
Industrial Components -- 1.3%
Dana Corp. ........................................................ 50,000 1,413
Goodyear Tire & Rubber Co. ........................................ 70,000 2,957
Rockwell International Corp. ...................................... 70,000 3,194
TRW, Inc. ......................................................... 40,000 3,155
Machinery & Engineering -- 3.6%
Caterpillar, Inc. ................................................. 125,000 7,531
Crompton & Knowles Corp. .......................................... 100,000 1,813
Deere & Co. ....................................................... 70,000 6,055
Ingersoll-Rand Co. ................................................ 70,000 2,607
Parker-Hannifin Corp. ............................................. 70,000 3,999
Sundstrand Corp. .................................................. 145,000 8,047
---------
120,054
---------
CONSUMER GOODS -- 15.3%
Appliances & Household Durables -- 0.6%
Corning, Inc. ..................................................... 100,000 3,200
LADD Furniture, Inc. .............................................. 112,333 1,538
Automotive -- 0.8%
Ford Motor Co. .................................................... 120,000 3,510
General Motors Corp. .............................................. 70,000 3,360
</TABLE>
---------------------
14
<PAGE> 16
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER GOODS (continued)
Beverages & Tobacco -- 3.9%
American Brands, Inc. ............................................. 70,000 $ 2,826
PepsiCo, Inc. ..................................................... 155,000 7,595
Philip Morris Cos., Inc. .......................................... 208,000 15,158
Seagram Co., Ltd. ................................................. 209,500 6,285
Food & Household Products -- 1.2%
ConAgra, Inc. ..................................................... 90,000 3,004
CPC International, Inc. ........................................... 110,000 6,682
Health & Personal Care -- 7.9%
Abbott Laboratories................................................ 100,000 4,000
American Home Products Corp. ...................................... 85,000 6,258
Bausch & Lomb, Inc. ............................................... 20,200 821
Baxter International, Inc. ........................................ 70,000 2,441
Bristol-Myers Squibb Co. .......................................... 120,000 7,965
Johnson & Johnson Co. ............................................. 50,000 3,313
Lilly (Eli) & Co. ................................................. 85,000 6,343
Merck & Co., Inc. ................................................. 257,500 12,135
Pfizer, Inc. ...................................................... 80,000 7,050
Schering-Plough Corp. ............................................. 90,000 7,087
Upjohn Co. ........................................................ 80,000 2,910
Warner-Lambert Co. ................................................ 60,000 4,972
Recreation & Other Consumer Products -- 0.6%
American Greetings Corp., Class A.................................. 20,000 565
Eastman Kodak Co. ................................................. 60,000 3,623
Stanley Works...................................................... 28,000 1,120
Textiles & Apparel -- 0.3%
V.F. Corp. ........................................................ 45,000 2,396
---------
126,157
---------
ENERGY -- 7.9%
Energy Sources -- 5.5%
Amoco Corp. ....................................................... 110,000 7,521
Atlantic Richfield Co. ............................................ 40,000 4,645
Exxon Corp. ....................................................... 55,000 3,926
Phillips Petroleum Co. ............................................ 210,000 7,612
Royal Dutch Petroleum Co. ......................................... 55,000 6,971
Texaco, Inc. ...................................................... 70,000 4,795
Tosco Corp. ....................................................... 30,000 1,065
Total SA ADR....................................................... 20,000 620
Unocal Corp. ...................................................... 140,000 4,148
Valero Energy Corp. ............................................... 212,000 4,505
Utilities: Electric, Gas & Water -- 2.4%
Central & South West Corp. ........................................ 100,000 2,575
Consolidated Edison Co. N.Y. ...................................... 100,000 2,987
Entergy Corp. ..................................................... 240,000 5,940
General Public Utilities Corp. .................................... 40,000 1,200
Long Island Lighting Co. .......................................... 105,000 1,641
Pacific Gas & Electric Co. ........................................ 185,000 5,365
---------
65,516
---------
</TABLE>
---------------------
15
<PAGE> 17
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 12.8%
Banking -- 8.1%
Banc One Corp. .................................................... 210,625 $ 7,319
Bank of New York, Inc. ............................................ 80,000 3,260
BankAmerica Corp. ................................................. 95,000 4,964
Bankers Trust New York Corp. ...................................... 65,000 4,079
Chase Manhattan Corp. ............................................. 70,000 3,237
Comerica, Inc. .................................................... 120,000 3,795
First Fidelity Bancorp............................................. 70,000 3,719
First Interstate Bancorp........................................... 40,000 3,360
First Tennessee National Corp. .................................... 50,000 2,194
First Union Corp. ................................................. 65,000 3,185
Huntington Bancshares, Inc. ....................................... 200,000 3,925
Morgan (J.P.) & Co., Inc. ......................................... 30,000 2,126
Northern Trust Corp. .............................................. 20,000 775
Norwest Corp. ..................................................... 20,000 568
PNC Bank Corp. .................................................... 262,000 7,074
SunTrust Banks, Inc. .............................................. 80,000 4,640
Wachovia Corp. .................................................... 100,000 3,787
Wells Fargo & Co. ................................................. 25,000 4,600
Financial Services -- 1.2%
American Express Co. .............................................. 50,000 1,781
Beneficial Corp. .................................................. 20,000 890
Household International, Inc. ..................................... 40,000 1,975
Student Loan Marketing Association................................. 110,000 5,225
Insurance -- 3.5%
Allstate Corp. .................................................... 240,000 7,230
American General Corp. ............................................ 30,000 1,035
Chubb Corp. ....................................................... 10,000 824
Cigna Corp. ....................................................... 35,000 2,616
Gallagher (Arthur J.) & Co. ....................................... 111,400 3,885
General Reinsurance Group.......................................... 15,000 2,031
SAFECO Corp. ...................................................... 140,000 8,225
St. Paul Cos., Inc. ............................................... 40,000 2,035
TIG Holdings, Inc. ................................................ 50,000 1,175
---------
105,534
---------
MATERIALS -- 9.3%
Building Materials -- 0.2%
TRINOVA Corp. ..................................................... 50,000 1,700
Chemicals -- 4.1%
Dow Chemical Co. .................................................. 73,000 5,356
du Pont (E.I.) de Nemours & Co. ................................... 30,000 2,036
Eastman Chemical Co. .............................................. 120,000 7,200
Goodrich (B.F.) Co. ............................................... 40,000 1,985
Monsanto Co. ...................................................... 87,500 7,285
PPG Industries, Inc. .............................................. 60,000 2,498
Praxair, Inc. ..................................................... 310,000 7,711
Forest Products & Paper -- 2.4%
James River Corp. ................................................. 125,000 3,375
Rayonier, Inc. .................................................... 92,500 3,180
Union Camp Corp. .................................................. 175,000 9,078
Westvaco Corp. .................................................... 40,000 1,710
Weyerhaeuser Co. .................................................. 60,000 2,632
</TABLE>
---------------------
16
<PAGE> 18
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 2.6%
Alumax, Inc.+...................................................... 20,000 $ 583
Aluminum Co. of America............................................ 210,000 9,765
Inco Ltd. ......................................................... 80,000 2,000
Phelps Dodge Corp. ................................................ 10,000 551
Potash Corp. of Saskatchewan, Inc. ................................ 180,000 8,617
---------
77,262
---------
MULTI-INDUSTRY -- 3.2%
Multi-Industry -- 3.2%
AlliedSignal, Inc. ................................................ 40,000 1,615
Hanson PLC ADR..................................................... 120,000 2,280
Harsco Corp. ...................................................... 130,000 6,614
Minnesota Mining & Manufacturing Co. .............................. 80,000 4,790
Tenneco, Inc. ..................................................... 130,000 6,240
Textron, Inc. ..................................................... 75,000 4,566
---------
26,105
---------
SERVICES -- 25.3%
Broadcasting & Publishing -- 5.7%
CBS, Inc. ......................................................... 43,890 2,941
Cox Communications, Inc.+.......................................... 92,293 1,500
Gannett Co., Inc. ................................................. 70,000 3,745
New York Times Co. ................................................ 114,900 2,600
News Corp., Ltd. ADR............................................... 160,000 3,460
SBC Communications, Inc. .......................................... 40,000 1,800
Scripps (E.W.) Co., Class A........................................ 135,000 4,185
Tele-Communications, Inc.+......................................... 580,000 12,252
Time Warner, Inc. ................................................. 250,000 9,906
Times Mirror Co. .................................................. 56,056 1,303
Tribune Co. ....................................................... 60,000 3,578
Business & Public Services -- 4.7%
Browning-Ferris Industries, Inc. .................................. 170,000 6,056
Dun & Bradstreet Corp. ............................................ 210,000 11,130
Federal Express Corp.+............................................. 30,000 1,796
General Motors Corp., Class E...................................... 125,000 5,313
Omnicom Group...................................................... 20,000 1,153
Pitney Bowes, Inc. ................................................ 30,000 1,110
WMX Technologies, Inc. ............................................ 445,000 12,126
Leisure & Tourism -- 1.9%
Disney (Walt) Co. ................................................. 200,000 11,125
Host Marriott Corp.+............................................... 110,000 1,169
Marriott International, Inc. ...................................... 100,000 3,387
Merchandising -- 3.7%
Giant Foods, Inc. ................................................. 200,000 5,750
Limited, Inc. ..................................................... 405,000 9,011
May Department Stores Co. ......................................... 80,000 3,140
Melville Corp. .................................................... 85,000 3,379
Penney (J.C.), Inc. ............................................... 20,000 942
Wal-Mart Stores, Inc. ............................................. 239,000 5,975
Walgreen Co. ...................................................... 40,000 1,925
Telecommunications -- 6.2%
AirTouch Communications, Inc.+..................................... 31,013 845
Alltel Corp. ...................................................... 20,000 493
Ameritech Corp. ................................................... 50,000 2,219
AT&T Corp. ........................................................ 315,000 15,986
Bell Atlantic Corp. ............................................... 40,000 2,230
GTE Corp. ......................................................... 35,000 1,168
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES (continued)
Telecommunications (continued)
MCI Communications Corp. .......................................... 380,000 $ 7,695
Pacific Telesis Group.............................................. 81,013 2,167
Sprint Corp. ...................................................... 190,000 6,365
Telefonos de Mexico SA ADR......................................... 221,800 6,238
US West, Inc. ..................................................... 146,800 6,055
Transportation: Airlines -- 0.8%
AMR Corp.+......................................................... 100,000 6,825
Transportation: Rail & Road -- 2.3%
Conrail, Inc. ..................................................... 150,000 8,100
Norfolk Southern Corp. ............................................ 65,000 4,453
Union Pacific Corp. ............................................... 110,000 6,091
---------
208,687
---------
OTHER COMMON STOCK -- 1.5%......................................... 12,680
---------
TOTAL COMMON STOCK (cost: $585,639)................................ 741,995
---------
<CAPTION>
PREFERRED STOCK -- 0.3%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting & Publishing -- 0.3%
News Corp., Ltd. ADR............................................... 80,000 1,570
Times Mirror Co., Preferred Series B............................... 44,896 1,044
---------
TOTAL PREFERRED STOCK (cost: $2,106)............................... 2,614
---------
TOTAL INVESTMENT SECURITIES (cost: $587,745)....................... 744,609
---------
<CAPTION>
PRINCIPAL
AMOUNT
(IN
SHORT-TERM SECURITIES -- 10.6% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 10.6%
Associates Corp. North America 6.12% due 6/01/95 .................. $ 10,630 10,630
Coca-Cola Co. 5.95% due 7/06/95 ................................... 11,900 11,831
Commercial Credit Group, Inc. 5.96% due 6/02/95 ................... 9,800 9,798
Ford Motor Credit Co. 5.93% due 6/16/95 ........................... 9,000 8,978
Ford Motor Credit Co. 5.94% due 6/20/95 ........................... 8,000 7,975
National Rural Utilities Cooperative Finance Corp. 5.94% due
6/21/95 ......................................................... 12,500 12,459
Raytheon Co. 5.97% due 6/19/95 .................................... 15,150 15,105
Xerox Corp. 5.93% due 6/08/95 ..................................... 11,100 11,087
---------
TOTAL SHORT-TERM SECURITIES (cost: $87,863)........................ 87,863
---------
TOTAL INVESTMENTS --
(cost: $675,608) 100.7% 832,472
Liabilities in excess of other assets -- (0.7) (6,009)
------ ---------
NET ASSETS -- 100.0% $826,463
====== =========
</TABLE>
---------------
+ Non-income producing securities
ADR - American Depositary Receipt
See Notes to Financial Statements
---------------------
18
<PAGE> 20
- ---------------------
ANCHOR PATHWAY FUND
ASSET ALLOCATION SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK -- 68.1% SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL EQUIPMENT -- 10.2%
Aerospace & Military Technology -- 2.7%
Boeing Co. ........................................................ 30,000 $ 1,766
General Motors Corp., Class H...................................... 31,000 1,263
Northrop Grumman Corp. ............................................ 20,000 1,048
Data Processing & Reproduction -- 2.1%
Apple Computer, Inc. .............................................. 20,000 831
International Business Machines Corp. ............................. 25,000 2,332
Electrical & Electronics -- 0.8%
Hubbell, Inc. ..................................................... 21,000 1,194
Electronic Components -- 0.4%
Advanced Micro Devices, Inc.+...................................... 20,000 658
Energy Equipment -- 1.2%
Cooper Industries, Inc. ........................................... 20,000 740
Schlumberger Ltd. ................................................. 15,000 975
Industrial Components -- 2.5%
Dana Corp. ........................................................ 35,000 989
Rockwell International Corp. ...................................... 60,000 2,737
Machinery & Engineering -- 0.5%
Crompton & Knowles Corp. .......................................... 40,000 725
---------
15,258
---------
CONSUMER GOODS -- 15.2%
Automotive -- 0.7%
General Motors Corp. .............................................. 20,000 960
Beverages & Tobacco -- 1.6%
PepsiCo, Inc. ..................................................... 50,000 2,450
Food & Household Products -- 1.7%
General Mills, Inc. ............................................... 17,500 908
Heinz (H.J.) Co. .................................................. 20,000 905
Ralston Purina Co. ................................................ 15,000 753
Health & Personal Care -- 10.0%
Abbott Laboratories................................................ 18,000 720
American Home Products Corp. ...................................... 45,000 3,313
Bausch & Lomb, Inc. ............................................... 20,000 813
Baxter International, Inc. ........................................ 25,000 872
Bristol-Myers Squibb Co. .......................................... 45,000 2,987
Kimberly-Clark Corp. .............................................. 10,000 600
Lilly (Eli) & Co. ................................................. 10,000 746
Pfizer, Inc. ...................................................... 27,000 2,379
Tambrands, Inc. ................................................... 20,000 858
Warner-Lambert Co. ................................................ 20,000 1,657
</TABLE>
---------------------
19
<PAGE> 21
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER GOODS (continued)
Recreation & Other Consumer Products -- 1.2%
American Greetings Corp., Class A.................................. 10,000 $ 283
Eastman Kodak Co. ................................................. 20,000 1,207
Stanley Works...................................................... 7,100 284
---------
22,695
---------
ENERGY -- 8.0%
Energy Sources -- 6.8%
Amoco Corp. ....................................................... 40,000 2,735
Anadarko Petroleum Corp. .......................................... 20,000 867
Atlantic Richfield Co. ............................................ 5,000 581
Kerr-McGee Corp. .................................................. 25,000 1,394
Phillips Petroleum Co. ............................................ 60,000 2,175
Royal Dutch Petroleum Co. ADR...................................... 6,000 761
Unocal Corp. ...................................................... 55,000 1,629
Utilities: Electric, Gas & Water -- 1.2%
Entergy Corp. ..................................................... 18,000 446
Houston Industries, Inc. .......................................... 10,000 431
Long Island Lighting Co. .......................................... 60,000 937
---------
11,956
---------
FINANCE -- 14.1%
Banking -- 8.1%
BankAmerica Corp. ................................................. 30,000 1,567
Bankers Trust New York Corp. ...................................... 21,000 1,318
Chase Manhattan Corp. ............................................. 15,000 694
Citicorp........................................................... 35,000 1,872
Comerica, Inc. .................................................... 15,000 474
First Fidelity Bancorp............................................. 47,000 2,497
First Interstate Bancorp........................................... 20,000 1,680
First Tennessee National Corp. .................................... 5,000 219
Fleet Financial Group, Inc. ....................................... 25,000 872
Morgan (J.P.) & Co., Inc. ......................................... 12,000 851
Insurance -- 6.0%
Allstate Corp. .................................................... 30,000 904
AMBAC, Inc. ....................................................... 35,000 1,400
American General Corp. ............................................ 15,000 518
American International Group, Inc. ................................ 6,000 683
Cigna Corp. ....................................................... 30,000 2,242
Ohio Casualty Corp. ............................................... 16,000 488
SAFECO Corp. ...................................................... 43,000 2,526
St. Paul Cos., Inc. ............................................... 5,000 254
---------
21,059
---------
MATERIALS -- 5.3%
Building Materials -- 0.6%
TRINOVA Corp. ..................................................... 25,000 850
Chemicals -- 1.8%
du Pont (E.I.) de Nemours & Co. ................................... 5,000 339
Eastman Chemical Co. .............................................. 15,000 900
Great Lakes Chemical Corp. ........................................ 10,000 610
Monsanto Co. ...................................................... 10,000 833
Forest Products & Paper -- 2.4%
Georgia-Pacific Corp. ............................................. 10,000 778
Rayonier, Inc. .................................................... 25,500 877
Union Camp Corp. .................................................. 20,000 1,037
Weyerhaeuser Co. .................................................. 20,000 877
</TABLE>
---------------------
20
<PAGE> 22
<TABLE>
<CAPTION>
VALUE
(IN
COMMON STOCK (continued) SHARES THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 0.5%
Aluminum Co. of America............................................ 16,000 $ 744
---------
7,845
---------
MULTI-INDUSTRY -- 3.0%
Multi-Industry -- 3.0%
Minnesota Mining & Manufacturing Co. .............................. 10,000 599
Tenneco, Inc. ..................................................... 30,000 1,440
Textron, Inc. ..................................................... 40,000 2,435
---------
4,474
---------
SERVICES -- 11.1%
Broadcasting & Publishing -- 1.7%
CBS, Inc. ......................................................... 32,500 2,178
Times Mirror Co. .................................................. 17,518 407
Business & Public Services -- 0.5%
Dun & Bradstreet Corp. ............................................ 15,000 795
Merchandising -- 3.8%
Limited, Inc. ..................................................... 70,000 1,557
May Department Stores Co. ......................................... 30,000 1,177
Penney (J.C.), Inc. ............................................... 15,000 707
Sears Roebuck & Co. ............................................... 15,000 846
Walgreen Co. ...................................................... 30,000 1,444
Telecommunications -- 2.5%
AT&T Corp. ........................................................ 10,000 508
Bell Atlantic Corp. ............................................... 20,000 1,115
Pacific Telesis Group.............................................. 40,000 1,070
Sprint Corp. ...................................................... 30,000 1,005
Transportation: Rail & Road -- 2.6%
Conrail, Inc. ..................................................... 25,000 1,350
Norfolk Southern Corp. ............................................ 20,000 1,370
Union Pacific Corp. ............................................... 20,000 1,107
---------
16,636
---------
OTHER COMMON STOCK -- 1.2%......................................... 1,844
---------
TOTAL COMMON STOCK (cost: $87,930)................................. 101,767
---------
<CAPTION>
PREFERRED STOCK -- 0.1%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES -- 0.1%
Broadcasting & Publishing -- 0.1%
Times Mirror Co., Preferred Series B (cost: $174).................. 7,482 174
---------
<CAPTION>
PRINCIPAL
AMOUNT
(IN
BONDS & NOTES -- 19.7% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES -- 0.9%
Standard Credit Card Trust 9.38% 1997.............................. $ 1,250 1,326
---------
CORPORATE & NONCONVERTIBLES -- 14.5%
Automotive -- 0.7%
General Motors Corp. 8.80% 2021.................................... 1,000 1,137
Business & Public Services -- 0.7%
Federal Express Corp. 7.53% 2006................................... 1,000 1,004
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES (continued) THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Finance -- 7.2%
Ahmanson (H.F.) & Co. 9.88% 1999................................... $ 1,000 $ 1,109
American Reinsurance Corp. 10.88% 2004............................. 1,500 1,667
Capital One Bank 8.13% 1998........................................ 4,000 4,120
Capital One Bank 8.52% 1996........................................ 2,500 2,572
Coso Funding Corp. 8.87% 2001#..................................... 750 795
Saul B F Real Estate Investment Trust 11.63% 2002.................. 500 489
Industrial -- 5.5%
Acme Metals, Inc. 12.50% 2002...................................... 500 518
CenCall Communications Corp. zero coupon 2004(1)................... 1,000 490
Container Corp. America 9.75% 2003................................. 2,000 2,025
Marvel Holdings, Inc. zero coupon 1998............................. 800 564
Oryx Energy Co. 9.50% 1999......................................... 1,500 1,564
Oryx Energy Co. 10.00% 1999........................................ 500 531
Pohang Iron & Steel Ltd. 7.50% 2002................................ 2,500 2,565
Transportation -- 0.4%
Delta Air Lines, Inc. 9.88% 2000................................... 500 548
---------
21,698
---------
PRIVATE ISSUE PASS-THROUGH -- 1.0%
American Airlines 9.71% 2007....................................... 1,400 1,523
---------
UNITED STATES TREASURY -- 3.3%
10.38% Bonds 2009.................................................. 1,000 1,271
8.75% Notes 1997................................................... 1,500 1,593
8.88% Notes 1996................................................... 2,000 2,041
---------
4,905
---------
TOTAL BONDS & NOTES (cost: $28,959)................................ 29,452
---------
<CAPTION>
CONVERTIBLE BONDS -- 2.8%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting & Publishing -- 1.7%
Time Warner, Inc. zero coupon 2012................................. 1,200 397
Turner Broadcasting Systems, Inc. zero coupon 2007#................ 5,000 2,125
Industrial -- 0.5%
Hanson America, Inc. 2.39% 2001#*.................................. 1,000 790
Oil & Gas -- 0.6%
USX Marathon Group zero coupon 2005................................ 2,000 900
---------
TOTAL CONVERTIBLE BONDS (cost: $4,130)............................. 4,212
---------
TOTAL INVESTMENT SECURITIES (cost: $121,193)....................... 135,605
---------
</TABLE>
---------------------
22
<PAGE> 24
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
SHORT-TERM SECURITIES -- 9.8% THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 9.8%
American General Corp. 5.95% due 6/05/95 .......................... $ 3,200 $ 3,198
Associates Corp. North America 6.12% due 6/01/95 .................. 1,480 1,480
Central & South West 5.95% due 6/05/95 ............................ 2,500 2,498
Chevron Oil Finance Co. 5.93% due 6/21/95 ......................... 1,400 1,396
Penney (J.C.) Funding Corp. 5.93% due 6/26/95 ..................... 2,400 2,390
Raytheon Co. 5.93% due 6/12/95 .................................... 3,733 3,726
---------
TOTAL SHORT-TERM SECURITIES (cost: $14,688)........................ 14,688
---------
TOTAL INVESTMENTS --
(cost: $135,881) 100.5% 150,293
Liabilities in excess of other assets -- (0.5) (749)
------ ---------
NET ASSETS -- 100.0% $149,544
====== =========
</TABLE>
--------------
+ Non-income producing securities
# Resale restricted to qualified institutional buyers
* Fair value determined by Trustees
(1) Represents a zero-coupon bond which will convert to an
interest-bearing security at a later date
ADR - American Depositary Receipt
See Notes to Financial Statements
---------------------
23
<PAGE> 25
- ---------------------
ANCHOR PATHWAY FUND
HIGH-YIELD BOND SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES -- 82.5% THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL EQUIPMENT -- 3.5%
Aerospace & Military Technology -- 3.2%
Coltec Industries 9.75% 1999....................................... $ 500 $ 515
Coltec Industries 9.75% 2000....................................... 4,500 4,613
Electronic Components -- 0.3%
Exide Corp. 10.00% 2005#........................................... 500 510
---------
5,638
---------
CONSUMER GOODS -- 1.8%
Food & Household Products -- 1.8%
Dr. Pepper/Seven Up Cos., Inc. 10.25% 2000......................... 2,750 2,860
---------
ENERGY -- 7.0%
Energy Sources -- 4.6%
Dual Drilling Co. 9.88% 2004....................................... 2,000 1,765
Flores & Rucks, Inc. 13.50% 2004................................... 500 557
Global Marine, Inc. 12.75% 1999.................................... 2,000 2,205
Triton Energy Corp. zero coupon 2000(1)............................ 1,500 1,320
Tuboscope Vetco International, Inc. 10.75% 2003.................... 1,500 1,530
Utilities: Electric, Gas & Water -- 2.4%
California Energy, Inc. zero coupon 2004(1)........................ 4,000 3,320
Midland Cogeneration 10.33% 2002................................... 425 432
---------
11,129
---------
FINANCE -- 2.2%
Financial Services -- 2.2%
Indah Kiat International Finance Co. BV 11.88% 2002................ 1,000 1,025
Midland Funding Corp. 10.33% 2002.................................. 1,832 1,897
Tjiwi Kimia International Finance BV 13.25% 2001................... 500 534
---------
3,456
---------
INDUSTRIAL & COMMERCIAL -- 3.9%
Industrial -- 3.9%
Magnetek, Inc. 10.75% 1998......................................... 3,000 3,150
Owens Illinois, Inc. 11.00% 2003................................... 1,000 1,107
Stater Brothers Holdings, Inc. 11.00% 2001......................... 2,000 2,010
---------
6,267
---------
MATERIALS -- 13.3%
Forest Products & Paper -- 10.4%
Container Corp. of America 9.75% 2003.............................. 5,250 5,315
Fort Howard Corp. 8.25% 2002....................................... 500 470
Fort Howard Corp. 9.25% 2001....................................... 3,500 3,482
Fort Howard Corp. 10.00% 2003...................................... 700 696
P T Indah Kiat Pulp & Paper 8.88% 2000#*........................... 1,500 1,380
Pacific Lumber Co. 10.50% 2003..................................... 1,000 948
Riverwood International Corp. 10.75% 2000.......................... 3,000 3,255
Riverwood International Corp. 11.25% 2002.......................... 500 550
Triangle Pacific Corp. 10.50% 2003................................. 500 508
</TABLE>
---------------------
24
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES (continued) THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 2.9%
A.K. Steel Corp. 10.75% 2004....................................... $ 2,000 $ 2,108
Acme Metals, Inc. zero coupon 2004(1).............................. 1,750 1,365
Kaiser Aluminum & Chemical Corp. 12.75% 2003....................... 500 539
Ucar Global Enterprises, Inc. 12.00% 2005#......................... 500 541
---------
21,157
---------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.9%
Federative Republic of Brazil 7.31% 2012........................... 500 266
Republic of Argentina 7.31% 2005................................... 3,000 1,961
Republic of Poland 3.25% 2014...................................... 500 260
United Mexican States 6.25% 2019................................... 1,000 560
---------
3,047
---------
SERVICES -- 48.9%
Advertising -- 1.3%
Neodata Services, Inc. zero coupon 2003(1)......................... 2,500 2,038
Broadcasting & Publishing -- 21.5%
American Media Operations, Inc. 11.63% 2004........................ 1,250 1,344
Bell Cablemedia PLC zero coupon 2004(1)............................ 5,500 3,589
CenCall Communications Corp. zero coupon 2004(1)................... 4,500 2,205
Centennial Cellular Corp. 8.88% 2001............................... 3,000 2,880
Century Communications Corp. 9.50% 2000............................ 2,500 2,519
Century Communications Corp. 9.75% 2002............................ 1,000 1,010
Continental Cablevision, Inc. 8.50% 2001........................... 500 500
Continental Cablevision, Inc. 8.63% 2003........................... 1,775 1,766
Continental Cablevision, Inc. 8.88% 2005........................... 1,000 1,000
Continental Cablevision, Inc. 10.63% 2002.......................... 3,000 3,150
Heartland Wireless Communication, Inc. 13.00% 2003#................ 500 530
Infinity Broadcasting Corp. 10.38% 2002............................ 2,250 2,374
International CableTel, Inc. zero coupon 2005(1)#.................. 750 426
Mobilemedia Commerce zero coupon 2003(1)........................... 2,500 1,625
Nextel Communications, Inc. zero coupon 2003(1).................... 4,500 2,610
Nextel Communications, Inc. zero coupon 2004(1).................... 2,250 1,114
PanAmSat L.P. 9.75% 2000........................................... 1,480 1,510
Univision Television Group, Inc. 11.75% 2001....................... 500 539
Videotron Holdings PLC zero coupon 2004(1)......................... 5,500 3,520
Business & Public Services -- 0.4%
Protection One Alarm Monitoring Corp. zero coupon 2005(1)#......... 1,000 660
Food Retail -- 5.6%
Allied Supermarkets, Inc. 6.63% 1998............................... 1,500 1,447
Foodmaker, Inc. 9.25% 1999......................................... 2,400 2,136
Foodmaker, Inc. 9.75% 2002......................................... 1,355 1,070
Marvel Holdings, Inc. zero coupon 1998............................. 2,250 1,586
Safeway Store Holdings, Inc. 10.00% 2002........................... 500 565
Star Market Co, Inc. 13.00% 2004................................... 1,000 1,074
Vons Cos., Inc. 9.63% 2002......................................... 1,000 1,068
Leisure & Tourism -- 3.5%
Four Seasons Hotels, Inc. 9.13% 2000#*............................. 1,000 980
Harrah's Jazz Co. 14.25% 2001...................................... 1,500 1,650
Kloster Cruise Ltd. 13.00% 2003.................................... 1,000 820
Plitt Theatres, Inc. 10.88% 2004................................... 2,250 2,227
</TABLE>
---------------------
25
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES (continued) THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES (continued)
Merchandising -- 4.4%
AnnTaylor, Inc. 8.75% 2000......................................... $ 500 $ 477
Barnes & Noble, Inc. 11.88% 2003................................... 1,750 1,912
CompUSA, Inc. 9.50% 2000........................................... 1,000 950
Thrifty PayLess Holdings, Inc. 11.75% 2003......................... 1,000 1,070
Thrifty PayLess Holdings, Inc. 12.25% 2004......................... 2,500 2,600
Telecommunications -- 11.6%
Dial Callable Communications, Inc. zero coupon 2004(1)............. 2,500 1,237
Horizon Cellular Telephone L.P. zero coupon 2000(1)................ 500 395
MFS Communication zero coupon 2004(1).............................. 7,000 4,760
Paging Network, Inc. 11.75% 2002................................... 2,200 2,376
Rogers Cantel Mobile Communications, Inc. 10.75% 2001.............. 7,318 7,574
Rogers Cantel Mobile Communications, Inc. 11.13% 2002.............. 1,000 1,040
Summit Communications Group I 10.50% 2005.......................... 1,000 1,080
Transportation -- 0.6%
Viking Star Shipping, Inc. 9.63% 2003.............................. 1,000 970
---------
77,973
---------
TOTAL BONDS & NOTES (cost: $132,397)............................... 131,527
---------
<CAPTION>
WARRANTS -- 0.0%+ SHARES
-------------------------------------------------------------------------------------------------
<S> <C> <C>
SERVICES -- 0.0%
Telecommunications -- 0.0%
Dial Page, Inc. (cost: $3)......................................... 2,500 0
---------
<CAPTION>
PRINCIPAL
AMOUNT
(IN
U.S. GOVERNMENT AND AGENCIES -- 8.8% THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES TREASURY -- 8.8%
5.13% Note 1998.................................................... $ 8,000 7,781
6.75% Note 2000.................................................... 3,000 3,085
6.88% Note 2000.................................................... 3,000 3,099
---------
13,965
---------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost: $13,521)................. 13,965
---------
TOTAL INVESTMENT SECURITIES (cost: $145,921)....................... 145,492
---------
</TABLE>
---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
SHORT-TERM SECURITIES -- 9.3% THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 9.3%
Associates Corp. North American 6.12% due 6/01/95 ................. $ 2,880 $ 2,880
Chevron Oil Finance Co. 5.93% due 6/01/95 ......................... 3,300 3,300
Eli Lilly & Co. 5.94% due 6/21/95 ................................. 1,600 1,595
Penney (J.C.) Funding Corp. 5.93% due 6/26/95 ..................... 5,000 4,979
Sara Lee Corp. 5.91% due 6/13/95 .................................. 2,000 1,996
---------
TOTAL SHORT-TERM SECURITIES (cost: $14,750)........................ 14,750
---------
TOTAL INVESTMENTS --
(cost: $160,671) 100.6% 160,242
Liabilities in excess of other assets -- (0.6) (893)
------ ---------
NET ASSETS -- 100.0% $159,349
====== =========
</TABLE>
---------------
+ Non-income producing securities
# Resale restricted to qualified institutional buyers
* Fair value determined by Trustees
(1) Represents a zero-coupon bond which will convert to an
interest-bearing security at later date
See Notes to Financial Statements
---------------------
27
<PAGE> 29
- ---------------------
ANCHOR PATHWAY FUND
U.S. GOVERNMENT/
AAA-RATED SECURITIES SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES -- 97.5% THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES -- 15.5%
MBNA Master Credit Card Trust 7.75% 1998........................... $ 5,000 $ 5,096
Sears Credit Account Trust 8.65% 1998.............................. 5,000 5,131
Standard Credit Card Master Trust 8.50% 1996 - Series 1991
Class A ......................................................... 5,250 5,368
Standard Credit Card Master Trust 8.88% 1999 - Series 1991
Participation Certificates....................................... 4,500 4,815
Standard Credit Card Trust 9.38% 1997 - Series 1990 Class 6A....... 2,000 2,121
---------
22,531
---------
DEVELOPMENTAL AUTHORITIES -- 7.3%
Asian Development Bank 8.00% 1996.................................. 1,250 1,282
International American Development Bank 9.50% 1997................. 2,900 3,104
International Bank for Reconstruction & Development 7.90% 1998..... 3,000 3,129
International Bank for Reconstruction & Development 9.76% 1998..... 1,500 1,638
International Bank for Reconstruction & Development 14.90% 1997.... 1,200 1,391
---------
10,544
---------
FEDERAL AGENCY OBLIGATIONS -- 26.4%++
Federal Home Loan Mortgage Corp. 6.50% 2009*....................... 2,000 1,931
Federal Home Loan Mortgage Corp. 9.00% 2021 - 2022................. 1,580 1,647
Federal Home Loan Mortgage Corp. 9.50% 2016........................ 1,121 1,170
Federal Home Loan Mortgage Corp. 11.88% 2013*...................... 23 24
Federal Home Loan Mortgage Corp. 12.50% 2013*...................... 203 221
Federal Home Loan Mortgage PC Guaranteed 4.61% 2024* (1)........... 1,500 673
Federal Home Loan Mortgage PC Guaranteed 4.73% 2008* (1)........... 1,683 1,030
Federal National Mortgage Association zero coupon
2001 (2) STRIPS.................................................. 18,000 16,215
Federal National Mortgage Association 7.50% 2009................... 1,992 2,029
Federal National Mortgage Association 8.50% 2023................... 2,610 2,710
Federal National Mortgage Association 8.63% 2021................... 1,750 1,941
Government National Mortgage Association 7.50% 2023................ 1,629 1,639
Government National Mortgage Association 8.00% 2017................ 2,441 2,520
Government National Mortgage Association 8.50% 2016 - 2022......... 2,356 2,450
Government National Mortgage Association 9.00% 2016 - 2017......... 989 1,043
Government National Mortgage Association 9.50% 2017................ 191 203
Government National Mortgage Association 10.00% 2016............... 53 57
Government National Mortgage Association 10.50% 2016 - 2019........ 491 538
Government National Mortgage Association 11.00% 2019............... 104 112
Government National Mortgage Association 11.50% 2010 - 2015........ 23 25
---------
38,178
---------
INDUSTRIALS -- 0.6%
De Bartolo Capital Corp. Euronotes 8.00% 1996...................... 850 852
---------
MISCELLANEOUS -- 2.7%
Columbia University Trustees NY 8.62% 2001......................... 1,500 1,648
Columbia University Trustees NY 8.65% 2003......................... 2,000 2,244
---------
3,892
---------
</TABLE>
---------------------
28
<PAGE> 30
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
BONDS & NOTES (continued) THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-RELATED SECURITIES -- 5.5%
CMC Securities Corp. 6.50% 2008.................................... $ 2,801 $ 2,628
Nomura Asset Securities Corp. zero coupon 2018*.................... 1,250 1,289
Prudential Home Mortgage 7.50% 2022................................ 4,000 4,014
---------
7,931
---------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.3%
Ontario Province Canada 15.25% 2012................................ 1,000 1,214
Ontario Province Canada 15.75% 2012................................ 1,800 2,167
---------
3,381
---------
TELECOMMUNICATIONS -- 2.2%
Nippon Telegraph & Telephone Corp. 9.50% 1998...................... 3,000 3,268
---------
UNITED STATES TREASURY -- 35.0%
8.75% Bonds 2008................................................... 2,000 2,291
8.88% Bonds 2017................................................... 7,000 8,658
10.38% Bonds 2009.................................................. 4,500 5,721
10.75% Bonds 2003.................................................. 3,750 4,789
12.00% Bonds 2013.................................................. 6,000 8,822
8.13% Notes 1998................................................... 6,500 6,852
8.88% Notes 1996................................................... 8,000 8,164
8.88% Notes 1997................................................... 5,000 5,333
---------
50,630
---------
TOTAL INVESTMENT SECURITIES (cost: $139,878)....................... 141,207
---------
<CAPTION>
SHORT-TERM SECURITIES -- 1.0%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 1.0%
Associates Corp. North America 6.12% due 6/01/95 (cost: $1,390).... 1,390 1,390
---------
TOTAL INVESTMENTS --
(cost: $141,268) 98.5% 142,597
Other assets less liabilities -- 1.5 2,154
------ ---------
NET ASSETS -- 100.0% $144,751
====== =========
</TABLE>
----------------
++ Pass-through securities are backed by a pool of mortgages or
other loans on which principal payments are periodically made.
Therefore, the effective maturity is shorter than stated
maturity.
* Fair value determined by Trustees
(1) Inverse Floater -- coupon rate moves inversely to a designated
index typically at a multiple of the changes of the relevant
index rate
(2) Represents a zero-coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
---------------------
29
<PAGE> 31
- ---------------------
ANCHOR PATHWAY FUND
CASH MANAGEMENT SERIES INVESTMENT PORTFOLIO -- MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(IN (IN
SHORT-TERM SECURITIES -- 100.1% THOUSANDS) THOUSANDS)
-------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 93.4%
AIG Funding, Inc. 5.94% due 6/23/95 ............................... $ 1,900 $ 1,893
American Express Credit Corp. 5.93% due 6/28/95 ................... 3,300 3,285
Ameritech Capital Funding Corp. 5.93% due 6/22/95 ................. 1,000 997
Anheuser-Busch Cos., Inc. 5.97% due 6/12/95 ....................... 5,000 4,991
Associates Corp. of North America 6.12% due 6/01/95 ............... 5,250 5,250
AT & T Corp. 5.96% due 6/27/95 .................................... 6,000 5,974
Avco Financial Services, Inc. 5.94% due 7/17/95 ................... 1,300 1,290
Baltimore Gas & Electric Co. 5.93% due 6/09/95 .................... 4,900 4,894
Beneficial Corp. 5.97% due 6/30/95 ................................ 5,000 4,976
Campbell Soup Co. 6.00% due 6/02/95 ............................... 4,500 4,499
Chevron Transport Corp. 5.94% due 6/14/95 ......................... 5,000 4,989
du Pont (E.I.) de Nemours & Co. 5.95% due 6/08/95 ................. 5,200 5,194
Ford Motor Credit Co. 5.96% due 6/09/95 ........................... 6,000 5,992
General Electric Capital Corp. 5.93% due 6/13/95 .................. 3,200 3,194
General Electric Capital Corp. 5.94% due 6/13/95 .................. 1,400 1,397
Heinz (H. J.) Co. 5.95% due 6/07/95 ............................... 1,500 1,499
Hershey Foods Corp. 6.00% due 6/02/95 ............................. 5,000 4,999
Lilly (Eli) & Co. 5.92% due 6/19/95 ............................... 5,000 4,985
McDonald's Corp. 5.93% due 6/05/95 ................................ 5,000 4,997
Motorola Credit Corp. 5.94% due 6/26/95 ........................... 5,000 4,979
National Rural Utilities Cooperative Finance Corp. 5.94% due
6/21/95 ......................................................... 5,000 4,984
PepsiCo, Inc. 5.94% due 6/05/95 ................................... 4,600 4,597
Pfizer, Inc. 5.92% due 7/07/95 .................................... 5,000 4,970
Pitney Bowes Credit Corp. 5.94% due 6/08/95 ....................... 5,000 4,994
Raytheon Co. 5.96% due 6/16/95 .................................... 1,600 1,596
Raytheon Co. 5.97% due 6/22/95 .................................... 3,300 3,289
Rockwell International Corp. 5.94% due 6/20/95 .................... 4,000 3,987
Southwestern Bell Telephone Co. 5.94% due 6/07/95 ................. 2,900 2,897
Texaco, Inc. 5.93% due 6/06/95 .................................... 5,000 4,996
Toys R Us, Inc. 5.91% due 6/12/95 ................................. 3,800 3,793
Xerox Corp. 5.95% due 6/12/95 ..................................... 5,000 4,991
---------
TOTAL CORPORATE SHORT-TERM NOTES (cost: $125,368).................. 125,368
---------
FEDERAL AGENCY OBLIGATIONS -- 6.7%
Federal National Mortgage Association Discount Note 5.90%
6/14/95.......................................................... 4,110 4,101
Tennessee Valley Authority Discount Note 5.90% 6/19/95............. 5,000 4,986
---------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost: $9,087).................... 9,087
---------
TOTAL SHORT-TERM SECURITIES (cost: $134,455)....................... 134,455
---------
TOTAL INVESTMENTS --
(cost: $134,455) 100.1% 134,455
Liabilities in excess of other assets -- (0.1) (189)
------ ---------
NET ASSETS -- 100.0% $134,266
====== =========
</TABLE>
See Notes to Financial Statements
---------------------
30
<PAGE> 32
- ---------------------
ANCHOR PATHWAY FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995 (UNAUDITED)
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
U.S.
GOVERNMENT/
ASSET HIGH-YIELD AAA-RATED
GROWTH INTERNATIONAL GROWTH-INCOME ALLOCATION BOND SECURITIES
SERIES SERIES SERIES SERIES SERIES SERIES
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*....... $754,205 $205,210 $744,609 $135,605 $145,492 $141,207
Short-term securities*................. 58,340 24,552 87,863 14,688 14,750 1,390
Money market accounts.................. 100 101 100 101 100 100
Cash................................... 3 33 4 2 2 3
Foreign cash........................... -- 234 -- -- -- --
Receivables for --
Sales of investments................. 7,363 5,096 4,438 640 -- --
Dividends and accrued interest....... 444 1,110 2,469 1,003 2,425 2,259
Fund shares sold..................... 269 12 121 13 39 1
Foreign currency contracts........... -- 4,750 -- -- -- --
Prepaid expenses....................... 8 3 9 2 2 2
-------------------------------------------------------------------------------------
820,732 241,101 839,613 152,054 162,810 144,962
-------------------------------------------------------------------------------------
LIABILITIES:
Payables for --
Purchases of investments............. 2,963 7 12,281 2,354 3,215 --
Fund shares redeemed................. 324 240 349 45 136 105
Advisory fees........................ 209 122 210 39 41 38
Management fees...................... 140 49 140 26 28 25
Foreign currency contracts........... -- 4,708 -- -- -- --
Other accrued expenses................. 146 221 170 46 41 43
-------------------------------------------------------------------------------------
3,782 5,347 13,150 2,510 3,461 211
-------------------------------------------------------------------------------------
NET ASSETS............................. $816,950 $235,754 $826,463 $149,544 $159,349 $144,751
=====================================================================================
Shares of beneficial interest
outstanding (unlimited shares
authorized).......................... 21,934 18,047 29,993 11,017 12,399 12,740
Net asset value per share.............. $37.25 $13.06 $27.56 $13.57 $12.85 $11.36
=====================================================================================
COMPOSITION OF NET ASSETS:
Capital paid in........................ $523,106 $203,326 $634,416 $126,906 $155,592 $138,459
Accumulated undistributed net
investment income.................... 2,277 2,564 10,604 3,026 6,667 5,663
Accumulated undistributed net realized
gain (loss) on investments and
foreign currency..................... 23,370 2,736 24,579 5,200 (2,481) (700)
Unrealized appreciation/depreciation of
investments.......................... 268,197 27,115 156,864 14,412 (429) 1,329
Unrealized foreign exchange gain on
other assets and liabilities......... -- 13 -- -- -- --
-------------------------------------------------------------------------------------
Net Assets......................... $816,950 $235,754 $826,463 $149,544 $159,349 $144,751
=====================================================================================
<CAPTION>
CASH
MANAGEMENT
SERIES
<S> <C>
---------------------------------------------------
ASSETS:
Investment securities, at value*....... $ --
Short-term securities*................. 134,455
Money market accounts.................. 100
Cash................................... 82
Foreign cash........................... --
Receivables for --
Sales of investments................. --
Dividends and accrued interest....... 1
Fund shares sold..................... 189
Foreign currency contracts........... --
Prepaid expenses....................... 2
----------
134,829
==========
LIABILITIES:
Payables for --
Purchases of investments............. --
Fund shares redeemed................. 462
Advisory fees........................ 36
Management fees...................... 24
Foreign currency contracts........... --
Other accrued expenses................. 41
----------
563
----------
NET ASSETS............................. $134,266
==========
Shares of beneficial interest
outstanding (unlimited shares
authorized).......................... 11,839
Net asset value per share.............. $11.34
==========
COMPOSITION OF NET ASSETS:
Capital paid in........................ $129,952
Accumulated undistributed net
investment income.................... 4,314
Accumulated undistributed net realized
gain (loss) on investments and
foreign currency..................... --
Unrealized appreciation/depreciation of
investments.......................... --
Unrealized foreign exchange gain on
other assets and liabilities......... --
----------
Net Assets......................... $134,266
==========
</TABLE>
- ---------------
* Cost.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Investment Securities.................. $486,008 $178,095 $587,745 $121,193 $145,921 $139,878
=====================================================================================
Short-term Securities.................. $ 58,340 $ 24,552 $ 87,863 $ 14,688 $ 14,750 $ 1,390
=====================================================================================
<CAPTION>
<S> <C>
Investment Securities.................. $ --
==========
Short-term Securities.................. $134,455
==========
</TABLE>
See Notes to Financial Statements
---------------------
31
<PAGE> 33
- ---------------------
ANCHOR PATHWAY FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
(DOLLARS AND SHARES IN THOUSANDS)
<TABLE>
<CAPTION>
U.S.
GOVERNMENT/
ASSET HIGH-YIELD AAA-RATED
GROWTH INTERNATIONAL GROWTH-INCOME ALLOCATION BOND SECURITIES
SERIES SERIES SERIES SERIES SERIES SERIES
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Dividends*............................ $ 2,499 $2,861 $ 10,353 $ 1,643 $ -- $ --
Interest.............................. 1,886 985 2,453 1,827 7,090 6,114
-------------------------------------------------------------------------------------
Total income................... 4,385 3,846 12,806 3,470 7,090 6,114
-------------------------------------------------------------------------------------
Expenses:
Advisory fees......................... 1,136 715 1,189 224 216 231
Management fees....................... 757 286 793 150 144 154
Custodian fees........................ 140 250 142 44 39 42
Auditing and legal fees............... 34 14 34 9 8 9
Reports to investors.................. 19 5 20 4 4 4
Trustees' fees........................ 8 3 9 2 2 1
Other expenses........................ 9 4 9 2 3 3
-------------------------------------------------------------------------------------
Total expenses................. 2,103 1,277 2,196 435 416 444
-------------------------------------------------------------------------------------
Net investment income................. 2,282 2,569 10,610 3,035 6,674 5,670
-------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on
investments........................... 23,252 761 24,857 5,237 (1,413) (690)
Net realized foreign exchange gain on
other assets and liabilities.......... 174 2,032 -- -- -- --
Change in unrealized appreciation/
depreciation of investments........... 100,204 4,193 84,055 13,748 11,099 9,018
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities........................... -- 4 -- -- -- --
-------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments and foreign currency... 123,630 6,990 108,912 18,985 9,686 8,328
-------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $125,912 $9,559 $119,522 $22,020 $16,360 $13,998
=====================================================================================
<CAPTION>
CASH
MANAGEMENT
SERIES
----------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
Income:
Dividends*............................ $ --
Interest.............................. 4,790
--------
Total income................... 4,790
--------
Expenses:
Advisory fees......................... 251
Management fees....................... 167
Custodian fees........................ 34
Auditing and legal fees............... 11
Reports to investors.................. 5
Trustees' fees........................ 2
Other expenses........................ 2
--------
Total expenses................. 472
--------
Net investment income................. 4,318
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on
investments........................... --
Net realized foreign exchange gain on
other assets and liabilities.......... --
Change in unrealized appreciation/
depreciation of investments........... --
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities........................... --
--------
Net realized and unrealized gain (loss)
on investments and foreign currency... --
--------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $4,318
========
</TABLE>
- ---------------
* Net of foreign withholding taxes of $16, $371, $63 and $3 on Growth,
International, Growth-Income and Asset Allocation Series, respectively.
See Notes to Financial Statements
---------------------
32
<PAGE> 34
- ---------------------
ANCHOR PATHWAY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
(DOLLARS AND SHARES IN THOUSANDS)
<TABLE>
<CAPTION>
U.S.
GOVERNMENT/
ASSET HIGH-YIELD AAA-RATED
GROWTH INTERNATIONAL GROWTH-INCOME ALLOCATION BOND SECURITIES
SERIES SERIES SERIES SERIES SERIES SERIES
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income.................. $ 2,282 $ 2,569 $ 10,610 $ 3,035 $ 6,674 $ 5,670
Net realized gain (loss) on
investments.......................... 23,252 761 24,857 5,237 (1,413) (690)
Net realized foreign exchange gain on
other assets and liabilities......... 174 2,032 -- -- -- --
Change in unrealized appreciation/
depreciation of investments.......... 100,204 4,193 84,055 13,748 11,099 9,018
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities.......................... -- 4 -- -- -- --
-------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations...................... 125,912 9,559 119,522 22,020 16,360 13,998
-------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income... (4,130) (4,020) (20,910) (7,070) (15,715) (14,600)
Distributions from net realized gains
on investments....................... (53,955) (8,900) (61,645) (3,970) (1,315) (730)
-------------------------------------------------------------------------------------
Total dividends and distributions paid
to shareholders...................... (58,085) (12,920) (82,555) (11,040) (17,030) (15,330)
-------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............. 140,198 47,305 39,509 6,432 47,095 19,478
Proceeds from shares issued for
reinvestment of dividends and
distributions........................ 58,085 12,920 82,555 11,040 17,030 15,330
Cost of shares repurchased............. (161,762) (80,608) (98,539) (21,586) (31,573) (38,093)
-------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions......................... 36,521 (20,383) 23,525 (4,114) 32,552 (3,285)
-------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................... 104,348 (23,744) 60,492 6,866 31,882 (4,617)
NET ASSETS:
Beginning of year...................... 712,602 259,498 765,971 142,678 127,467 149,368
-------------------------------------------------------------------------------------
End of period.......................... $816,950 $235,754 $826,463 $149,544 $159,349 $144,751
=====================================================================================
<CAPTION>
CASH
MANAGEMENT
SERIES
<S> <C>
---------------------------------------------------
OPERATIONS:
Net investment income.................. $ 4,318
Net realized gain (loss) on
investments.......................... --
Net realized foreign exchange gain on
other assets and liabilities......... --
Change in unrealized appreciation/
depreciation of investments.......... --
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities.......................... --
----------
Net increase in net assets resulting
from operations...................... 4,318
----------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income... (6,355)
Distributions from net realized gains
on investments....................... (1)
Total dividends and distributions paid
to shareholders...................... (6,356)
----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............. 174,537
Proceeds from shares issued for
reinvestment of dividends and
distributions........................ 6,356
Cost of shares repurchased............. (230,985)
----------
Net increase (decrease) in net assets
resulting from capital share
transactions......................... (50,092)
----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................... (52,130)
NET ASSETS:
Beginning of year...................... 186,396
----------
End of period.......................... $134,266
==========
</TABLE>
- ---------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Undistributed net investment income.... $ 2,277 $ 2,564 $ 10,604 $ 3,026 $ 6,667 $ 5,663
=====================================================================================
Shares issued and repurchased:
Sold................................... 3,949 3,679 1,464 489 3,638 1,662
Issued in reinvestment of dividends and
distributions........................ 1,644 1,073 3,211 864 1,414 1,406
Repurchased............................ (4,568) (6,272) (3,633) (1,642) (2,419) (3,279)
-------------------------------------------------------------------------------------
Net increase (decrease)................ 1,025 (1,520) 1,042 (289) 2,633 (211)
=====================================================================================
<CAPTION>
Undistributed net investment income.... $ 4,314
==========
Shares issued and repurchased:
Sold................................... 15,168
Issued in reinvestment of dividends and
distributions........................ 566
Repurchased............................ (20,144)
----------
Net increase (decrease)................ (4,410)
==========
</TABLE>
See Notes to Financial Statements
---------------------
33
<PAGE> 35
- ---------------------
ANCHOR PATHWAY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1994
(DOLLARS AND SHARES IN THOUSANDS)
<TABLE>
<CAPTION>
U.S.
GOVERNMENT/
ASSET HIGH-YIELD AAA-RATED
GROWTH INTERNATIONAL GROWTH-INCOME ALLOCATION BOND SECURITIES
SERIES SERIES SERIES SERIES SERIES SERIES
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................. $ 4,125 $ 4,121 $ 20,905 $ 7,058 $ 13,997 $ 13,948
Net realized gain on investments....... 53,538 8,885 62,736 3,965 1,530 1,272
Net realized foreign exchange gain
(loss) on other assets and
liabilities.......................... 1 (122) -- -- -- --
Change in unrealized appreciation/
depreciation of investments.......... (34,726) 1,677 (66,898) (12,165) (22,236) (23,321)
Change in unrealized foreign exchange
gain/loss on other assets and
liabilities.......................... -- 20 -- -- -- --
-------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations............ 22,938 14,581 16,743 (1,142) (6,709) (8,101)
-------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income... (5,158) (2,114) (22,182) (7,396) (15,525) (17,308)
Distributions from net realized gain on
investments.......................... (55,961) (4,015) (45,504) (3,647) (5,104) (2,648)
-------------------------------------------------------------------------------------
Total dividends and distributions paid
to shareholders...................... (61,119) (6,129) (67,686) (11,043) (20,629) (19,956)
-------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............. 321,883 186,172 70,827 17,351 65,501 35,571
Proceeds from shares issued for
reinvestment of dividends and
distributions........................ 61,119 6,129 67,686 11,043 20,629 19,956
Cost of shares repurchased............. (367,619) (133,417) (184,315) (40,086) (121,840) (106,671)
-------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions......................... 15,383 58,884 (45,802) (11,692) (35,710) (51,144)
-------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................... (22,798) 67,336 (96,745) (23,877) (63,048) (79,201)
NET ASSETS:
Beginning of year...................... 735,400 192,162 862,716 166,555 190,515 228,569
-------------------------------------------------------------------------------------
End of year............................ $712,602 $259,498 $765,971 $142,678 $127,467 $149,368
=====================================================================================
<CAPTION>
CASH
MANAGEMENT
SERIES
----------------------------------------------------
<S> <C>
OPERATIONS:
Net investment income.................. $ 6,352
Net realized gain on investments....... --
Net realized foreign exchange gain
(loss) on other assets and
liabilities.......................... --
Change in unrealized appreciation/
depreciation of investments.......... --
Change in unrealized foreign exchange
gain/loss on other assets and
liabilities.......................... --
--------
Net increase (decrease) in net assets
resulting from operations............ 6,352
--------
DIVIDENDS AND DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net investment income... (4,276)
Distributions from net realized gain on
investments.......................... (1)
--------
Total dividends and distributions paid
to shareholders...................... (4,277)
--------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............. 452,279
Proceeds from shares issued for
reinvestment of dividends and
distributions........................ 4,277
Cost of shares repurchased............. (464,619)
--------
Net increase (decrease) in net assets
resulting from capital share
transactions......................... (8,063)
--------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................... (5,988)
NET ASSETS:
Beginning of year...................... 192,384
--------
End of year............................ $186,396
========
</TABLE>
- ---------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Undistributed net investment income.... $ 4,125 $ 4,015 $ 20,904 $ 7,061 $ 15,708 $ 14,593
=====================================================================================
Shares issued and repurchased:
Sold................................... 9,225 13,759 2,592 1,316 4,635 2,832
Issued in reinvestment of dividends and
distributions........................ 1,770 485 2,579 870 1,506 1,689
Repurchased............................ (10,651) (9,939) (6,775) (3,075) (8,535) (8,703)
-------------------------------------------------------------------------------------
Net increase (decrease)................ 344 4,285 (1,604) (889) (2,394) (4,182)
=====================================================================================
<CAPTION>
Undistributed net investment income.... $ 6,351
========
Shares issued and repurchased:
Sold................................... 39,918
Issued in reinvestment of dividends and
distributions........................ 383
Repurchased............................ (40,923)
--------
Net increase (decrease)................ (622)
========
</TABLE>
See Notes to Financial Statements
---------------------
34
<PAGE> 36
- ---------------------
ANCHOR PATHWAY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Anchor Pathway Fund (the
"Fund") is an entity of the type commonly known as a Massachusetts Business
Trust. Its Agreement and Declaration of Trust permits the issuance of an
unlimited number of shares ($.01 par value per share) of beneficial interest in
seven separate series, with shares of each series representing an interest in a
separate portfolio of assets and operating as a distinct fund. The Fund is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. Shares of the Fund are
offered only to Variable Separate Accounts, a separate account of Anchor
National Life Insurance Company which offers annuity contracts.
In the opinion of management of the Fund, the accompanying financial
statements contain all normal and recurring adjustments necessary for the fair
presentation of the financial position of the Fund at May 31, 1995, and the
results of its operations, the changes in its net assets and financial
highlights for the period then ended.
2. SIGNIFICANT ACCOUNTING POLICIES: Following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales prices
reported on recognized securities exchanges or, for listed securities having no
sales reported and for unlisted securities, upon last-reported bid prices.
Nonconvertible bonds, debentures, and other long-term debt securities are valued
at prices obtained for the day of valuation from a bond pricing service of a
major dealer in bonds when such prices are available; however, in circumstances
where the investment adviser deems it appropriate to do so, an over-the-counter
or exchange quotation at the mean of representative bid or asked prices may be
used. Securities traded primarily on securities exchanges outside the United
States are valued at the last sale price on such exchanges on the day of
valuation, or if there is no sale on the day of valuation, at the last reported
bid price. Short-term securities with original or remaining maturities in excess
of 60 days are valued at the mean of their quoted bid and ask prices. Short-term
securities with 60 days or less to maturity are amortized to maturity based on
their cost to the Fund if acquired within 60 days of maturity or, if already
held by the Fund on the 60th day, are amortized to maturity based on the value
determined on the 61st day. Securities for which quotations are not readily
available are valued at fair value as determined in good faith under the
direction of the Fund's Trustees.
FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at
published rates on the following basis:
(i) market value of investment securities, other assets and liabilities -- at
the prevailing rate of exchange at the valuation date.
(ii) purchases and sales of investment securities, income and expenses -- at
the rate of exchange prevailing on the respective dates of such transactions.
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.
The Fund does not isolate that portion of the results of operations arising as
a result of changes in the foreign exchange rates from the changes in the market
prices of securities held at fiscal year-end. Similarly, the Fund does not
isolate the effect of changes in foreign exchange rates from the changes in the
market prices of portfolio securities sold during the year.
Realized foreign exchange gains and losses on other assets and liabilities and
change in unrealized foreign exchange gains and losses on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, the difference between the amounts of interest, dividends,
discount and foreign withholding taxes recorded on the Fund's books and the U.S.
dollar equivalent amounts actually received or paid and changes in the
unrealized foreign exchange gains and losses relating to other assets and
liabilities arising as a result of changes in the exchange rate.
---------------------
35
<PAGE> 37
SECURITIES TRANSACTIONS, DIVIDENDS, INVESTMENT INCOME AND EXPENSES: As is
customary in the mutual fund industry, securities transactions are accounted for
on the date the securities are purchased or sold. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed after the ex-dividend date. The Fund does not amortize premiums or
accrete discounts on fixed income securities, other than short-term securities,
except those original issue discounts for which amortization is required for
federal income tax purposes; gains and losses realized upon the sale of such
securities are based on their identified cost.
Common expenses incurred by the Fund are allocated among the series based upon
relative net assets. In all other respects, expenses are charged to each series
as incurred on a specific identification basis.
STATEMENT OF POSITION 93-2: In 1994, the Funds adopted Statement of Position
93-2 Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies.
Accordingly, permanent book-tax differences relating to shareholder
distributions have been reclassified to paid-in-capital. Net investment
income/loss, net realized gain/loss, and net assets were not affected by this
change. The following table (in thousands) discloses the cumulative effect of
such differences reclassified from accumulated undistributed net investment
income/loss and accumulated undistributed net realized gain/loss on investments
to paid-in capital.
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED PAID
NET REALIZED NET INVESTMENT IN
GAIN/LOSS INCOME/LOSS CAPITAL
----------------------------------------------
<S> <C> <C> <C>
Growth Series......................................................... $(7,172) $(1,065) $ 8,237
International Series.................................................. 78 (79) 1
Growth-Income Series.................................................. (6,131) (226) 6,357
Asset Allocation Series............................................... (509) 471 38
High-Yield Bond Series................................................ (3,084) 4,068 (984)
U.S. Government/AAA-Rated Securities Series........................... 1,597 679 (2,276)
Cash Management Series................................................ 2 13 (15)
</TABLE>
3. FEDERAL INCOME TAXES: It is the Fund's policy to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income, including any net
realized gain on investments, to its shareholders. Therefore, no federal tax
provision is required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities at May 31, 1995 were as follows
(dollars in thousands):
<TABLE>
<CAPTION>
UNREALIZED
AGGREGATE AGGREGATE GAIN
UNREALIZED UNREALIZED (LOSS) COST OF
GAIN (LOSS) NET INVESTMENTS
---------------------------------------------------
<S> <C> <C> <C> <C>
Growth Series...................................................... $289,875 $(22,259) $267,616 $544,929
International Series............................................... 40,599 (13,484) 27,115 202,647
Growth-Income Series............................................... 168,071 (12,123) 155,948 676,524
Asset Allocation Series............................................ 15,581 (1,169) 14,412 135,881
High-Yield Bond Series............................................. 3,466 (3,895) (429) 160,671
U.S. Government/AAA-Rated Securities Series........................ 4,143 (2,540) 1,603 140,994
Cash Management Series............................................. -- -- -- 134,455
</TABLE>
4. BUSINESS MANAGER AND INVESTMENT ADVISER: Anchor Investment Adviser, Inc.
(the "Business Manager"), an indirect wholly owned subsidiary of Anchor National
Life Insurance Company, pursuant to a business management agreement, manages the
business affairs and the administration of the Fund. For these services, the
Business Manager receives a monthly fee which is accrued daily based on the
average net assets of each series of the Fund. Except for the International
Series, the business manager fee accrues at the annual rate of .24% on that
portion of each series' average daily net assets not exceeding $30,000,000 and
.20% on that portion of the series' average daily net assets in excess of
$30,000,000. The business manager fee for the International Series accrues at
the annual rate of .24% on the series' average daily net assets.
Advisory fees paid to Capital Research and Management Company (the "Investment
Adviser") are based on the net assets of each series at the following annual
rates: .36% on that portion of each series' (except for the International
Series) average daily net assets not exceeding $30,000,000 and .30% on that
portion of the series' average net assets in excess of $30,000,000. The advisory
fee for the International Series accrues at the annual rate of .66% on that
portion of the series' average daily net assets not exceeding $60,000,000 and
.58% on that portion of the series' average daily net assets in excess of
$60,000,000.
---------------------
36
<PAGE> 38
The Fund pays no salaries or compensation to any of its officers, all of whom
are officers or employees of SunAmerica Asset Management Corp., an affiliate of
the Business Manager, or SunAmerica Inc., the ultimate parent of the Business
Manager.
An annual fee of $13,000, plus expenses, is paid to each non-interested
Trustee for attendance at meetings of the Trustees. The interested Trustees
receive no remuneration from the Fund.
5. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities (in thousands) for the six months ended May 31,
1995, was as follows:
<TABLE>
<CAPTION>
U.S.
GOVERNMENT/
ASSET HIGH-YIELD AAA-RATED CASH
GROWTH INTERNATIONAL GROWTH-INCOME ALLOCATION BOND SECURITIES MANAGEMENT
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases of portfolio securities........ $84,312 $16,787 $ 79,890 $35,887 $31,778 $22,786 $ --
Sales of portfolio securities............ 95,948 39,414 134,109 50,593 12,895 25,159 --
U.S. government securities included above
were as follows:
Purchases of U.S. government
securities............................. -- -- -- 1,265 10,681 22,786 --
Sales of U.S. government securities...... 3,039 -- -- 4,979 -- 25,159 --
</TABLE>
---------------------
37
<PAGE> 39
- ---------------------
ANCHOR PATHWAY FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NET REALIZED TOTAL DIVIDENDS DIVIDENDS
NET ASSET NET & UNREALIZED FROM DECLARED FROM NET NET ASSET
VALUE INVEST- GAIN (LOSS) INVEST- FROM NET REALIZED VALUE
PERIOD BEGINNING MENT ON MENT INVESTMENT GAIN ON END OF TOTAL
ENDED OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth Series
11/30/91 $21.01 $0.37 $ 5.25 $ 5.62 $(0.77) $(0.29) $25.57 26.80%
11/30/92 25.57 0.23 5.21 5.44 (0.01) (0.04) 30.96 21.29
11/30/93 30.96 0.24@ 5.32 5.56 (0.23) (0.53) 35.76 18.26
11/30/94 35.76 0.19@ 1.04 1.23 (0.25) (2.66) 34.08 3.33
5/31/95* 34.08 0.11@ 5.91 6.02 (0.20) (2.65) 37.25 18.11
International Series
11/30/91 9.68 0.16 0.38 0.54 (0.09) -- 10.13 5.59
11/30/92 10.13 0.15 (0.12) 0.03 (0.14) (0.02) 10.00 0.31
11/30/93 10.00 0.18@ 2.54 2.72 (0.14) (0.01) 12.57 27.41
11/30/94 12.57 0.22@ 0.81 1.03 (0.12) (0.22) 13.26 8.17
5/31/95* 13.26 0.14@ 0.39 0.53 (0.23) (0.50) 13.06 4.46
Growth-Income Series
11/30/91 20.71 0.73 3.62 4.35 (0.87) (0.40) 23.79 21.14
11/30/92 23.79 0.64 3.12 3.76 (0.72) (0.58) 26.25 16.02
11/30/93 26.25 0.71@ 2.44 3.15 (0.63) (0.54) 28.23 12.34
11/30/94 28.23 0.69@ (0.14) 0.55 (0.76) (1.56) 26.46 2.00
5/31/95* 26.46 0.36@ 3.73 4.09 (0.76) (2.23) 27.56 16.26
Asset Allocation Series
11/30/91 10.62 0.56 1.32 1.88 (0.60) (0.02) 11.88 18.66
11/30/92 11.88 0.50 1.10 1.60 (0.53) (0.05) 12.90 13.80
11/30/93 12.90 0.63@ 0.72 1.35 (0.46) (0.13) 13.66 10.76
11/30/94 13.66 0.58@ (0.69) (0.11) (0.62) (0.31) 12.62 (0.84)
5/31/95* 12.62 0.28@ 1.73 2.01 (0.68) (0.38) 13.57 16.43
High-Yield Bond Series
11/30/91 12.08 1.19 2.16 3.35 (1.52) -- 13.91 29.25
11/30/92 13.91 1.20 0.65 1.85 (1.16) -- 14.60 14.06
11/30/93 14.60 1.27@ 1.02 2.29 (1.22) -- 15.67 16.44
11/30/94 15.67 1.24@ (1.88) (0.64) (1.49) (0.49) 13.05 (4.70)
5/31/95* 13.05 0.62@ 0.87 1.49 (1.56) (0.13) 12.85 12.33
U.S. Government/AAA-Rated Securities Series
11/30/91 11.78 0.74 0.78 1.52 (0.81) -- 12.49 13.59
11/30/92 12.49 0.85 0.31 1.16 (0.78) -- 12.87 9.84
11/30/93 12.87 0.95@ 0.61 1.56 (0.91) (0.18) 13.34 12.58
11/30/94 13.34 0.90@ (1.43) (0.53) (1.11) (0.17) 11.53 (4.17)
5/31/95* 11.53 0.44@ 0.65 1.09 (1.20) (0.06) 11.36 9.95
Cash Management Series
11/30/91 11.78 0.60 0.07 0.67 (0.57) -- 11.88 5.85
11/30/92 11.88 0.40 (0.03) 0.37 (0.75) -- 11.50 3.26
11/30/93 11.50 0.29@ -- 0.29 (0.39) -- 11.40 2.57
11/30/94 11.40 0.40@ -- 0.40 (0.33) -- 11.47 3.56
5/31/95* 11.47 0.30@ 0.01 0.31 (0.44) -- 11.34 2.72
<CAPTION>
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME PORTFOLIO
PERIOD PERIOD TO AVERAGE TO AVERAGE TURNOVER
ENDED (000'S) NET ASSETS NET ASSETS RATE
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
11/30/91 $458,719 0.62% 1.51% 12.30%
11/30/92 644,060 0.56 0.88 14.31
11/30/93 735,400 0.55 0.71 21.99
11/30/94 712,602 0.55 0.56 33.79
5/31/95* 816,950 0.56+ 0.61+ 12.20
11/30/91 50,654 1.40 2.20 14.30
11/30/92 85,919 1.19 1.88 21.04
11/30/93 192,162 1.12 1.62 22.56
11/30/94 259,498 1.04 1.64 21.68
5/31/95* 235,754 1.07+ 2.16+ 8.06
11/30/91 584,668 0.59 3.45 21.20
11/30/92 777,448 0.56 2.88 18.81
11/30/93 862,716 0.55 2.60 29.22
11/30/94 765,971 0.55 2.54 32.97
5/31/95* 826,463 0.56+ 2.70+ 11.27
11/30/91 78,271 0.77 5.50 16.50
11/30/92 134,100 0.63 4.84 21.86
11/30/93 166,555 0.60 4.70 22.66
11/30/94 142,678 0.59 4.47 48.53
5/31/95* 149,544 0.61+ 4.22+ 27.54
11/30/91 117,714 0.69 1 0.51 24.40
11/30/92 147,951 0.62 9.40 75.27
11/30/93 190,515 0.59 8.43 59.03
11/30/94 127,467 0.59 8.76 44.97
5/31/95* 159,349 0.60+ 9.67+ 10.34
11/30/91 192,330 0.66 7.96 30.90
11/30/92 230,798 0.59 7.32 47.58
11/30/93 228,569 0.58 7.19 9.14
11/30/94 149,368 0.58 7.42 16.95
5/31/95* 144,751 0.60+ 7.67+ 16.27
11/30/91 197,942 0.64 5.59 --
11/30/92 203,548 0.61 3.21 --
11/30/93 192,384 0.58 2.59 --
11/30/94 186,396 0.57 3.52 --
5/31/95* 134,266 0.59+ 5.94+ --
</TABLE>
- ---------------
@ Calculated based upon average shares outstanding
+ Annualized
* Unaudited
See Notes to Financial Statements
---------------------
38
<PAGE> 40
P-1064 (R 7/95)
