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[CHUBB INVESTMENT FUNDS, INC. LOGO]
CHUBB
INVESTMENT
FUNDS
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CHUBB INVESTMENT FUNDS, INC.
ONE GRANITE PLACE
CONCORD, NEW HAMPSHIRE 03301
Dear Fellow Shareholders:
1995 was a fabulous year for owners of long term financial assets. Although we
expected 1995 to be good, the actual results exceeded expectations. All of the
Chubb funds experienced excellent results, again validating our strategy of
maximizing return over the long term. While we expect that the favorable
investment environment will continue, this is not the time to rejoice, ignore
long term goals or take more risk just because last year was so good. All of us
are influenced by two emotions-fear and greed. Successful investors keep these
under control. We suggest that you stay with your long term plan.
Over the course of 1996 we expect the Federal Reserve to ease monetary policy by
reducing short term interest rates. This action should positively influence
common stock valuation, but it will be tempered by slower earnings growth as the
business cycle matures. Bonds may be more positively influenced. Inflation is
low and assets in Certificate of Deposits and money market funds may migrate to
longer maturity to offset the yield decline, pushing bond prices up.
In September, we added two new funds to our family and I am happy to report that
both are off to an excellent start. The first, the Capital Appreciation Fund, is
oriented toward mid-capitalization equity securities where we believe there is
significant value and growth potential. The second, the Global Income Fund, will
enable investors to diversify assets internationally and take advantage of
higher interest rates available outside the United States. Both of these funds
are managed by individuals with extensive investment experience and expertise.
The co-manager of the Global Income Fund is located in London, one of the
world's most important financial centers. This fund is unique in that the
investment managers are able to utilize the extensive worldwide operating and
intelligence network of The Chubb Corporation, an advantage not available to
many other global investors.
Late last year we initiated the beginnings of an additional distribution system
for the funds, for the first time going outside of the Chubb Securities network.
Given the excellent investment record and positive publicity received over the
past several years, reception has been positive.
Looking forward, our investment strategy remains the same; we plan to invest
your money to maximize return over the long term in accordance with the Fund's
prospectus. The two new funds will be managed in exactly the same fashion. All
of us at Chubb Investment Funds wish you a healthy and prosperous 1996, and if
you have any suggestions please do not hesitate to contact us.
Sincerely,
/s/ Michael O'Reilly
--------------------
Michael O'Reilly
President
Chubb Investment Funds, Inc.
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CHUBB MONEY MARKET FUND
by Thomas J. Swartz, III
Chubb Asset Managers, Inc.
The primary purpose of the Fund is to provide an investment vehicle that
minimizes credit quality risk and net asset fluctuations. The Fund continues to
meet this objective by investing in the highest quality short-term investment
vehicles, U.S. Government Securities. Given the narrow yield differential
between U.S. Government Securities and lesser quality alternative investments
such as commercial paper, we continue to feel it is prudent to invest
exclusively in government securities.
The U.S. economy during 1995 experienced steady but modest growth and subdued
inflation. Tightening by the Federal Reserve in early 1995 was followed by rate
cuts in July and December, resulting in a Fed Funds rate which ended the year
unchanged from the level at the start of 1995.
We expect economic growth during 1996 to be close to the Federal Reserve's
target range of 2.5%, accompanied by inflation which remains below 3%. Given
this scenario, the Federal Reserve may have latitude to reduce short-term rates
before real rates become overly stimulative to the economy. The Fund continues
to be an attractive investment alternative, given the still high short-term
interest rates relative to long-term bond yields, continued low consumer price
inflation, and stable net asset values.
CHUBB GOVERNMENT SECURITIES FUND
by Ned I. Gerstman
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
GOVERNMENT SECURITIES FUND AND THE LEHMAN BROTHERS GOVERNMENT BOND INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations December 1, 1987. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb
Government Securities Fund (the "Fund") at its inception with a similar
investment in the Lehman Brothers Government Bond Index. For the purpose
of this graph and the accompanying table, the average annual total return
for the Fund reflects all recurring expenses (advisory fees, account fees)
and a maximum 3% sales load, and includes the reinvestment of all
dividends and distributions.
THE LEHMAN BROTHERS GOVERNMENT BOND INDEX IS AN UNMANAGED INDEX AND
INCLUDES THE REINVESTMENT OF ALL DIVIDENDS, BUT DOES NOT REFLECT THE
PAYMENT OF TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT ARE
ASSOCIATED WITH AN INVESTMENT IN THE FUND.
continued
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After one of the worst performance years on record for the bond market in 1994,
last year turned out to be one of the best performance years on record. After
tightening monetary policy six times during 1994, the Federal Reserve tightened
for the final time of this economic cycle in February of 1995. It became clear
not long after that final move to higher rates that the economic expansion, that
had been fueled by the massive monetary easing from 1991 through 1993, was
running out of momentum. The combination of Federal Reserve action during 1994,
expectations of cyclical pressures to higher inflation and the unwinding of
leveraged yield curve arbitrage trades (Orange County, etc.), helped to push
interest rates higher in 1994 than fundamentals warranted. During 1995 GDP
growth slowed from 3.5% to approximately 2.1%, industrial production growth
slowed from 5.8% to 3.3%, average monthly non-farm payroll growth slowed from
294,000/month to 141,000/month and inflation as measured by the overstated
consumer price index rose marginally from 2.6% to 2.8%. This fundamentally
favorable economic environment allowed the Federal Reserve to reverse the course
of monetary policy from a tightening to an easing mode. All of the upward
interest rate bias that had been built into the yield curve during 1994 was
completely unwound during 1995. The result was significant capital appreciation
in bond funds as interest rates plunged.
For 1995, the Chubb U.S. Government Securities Fund achieved an annual total
return of 17.5% (excluding sales loads). A combination of call protected
Treasury and higher yielding mortgage-backed securities gave us the portfolio
balance that we seek to have our targeted intermediate maturity profile. We once
again outperformed both the average return for the Lipper General U.S.
Government and Intermediate U.S. Government bond categories.
We expect that 1996 will be another good year for bond funds although not as
good as the exceptional 1995. The slow economic environment along with low
inflation and progress on the fiscal policy front will allow the Federal Reserve
to continue on their monetary easing path. The yield curve has priced in further
easing so we suspect that the capital appreciation potential in the bond market
is less than that of last year. We will more likely structure the portfolio with
a somewhat more defensive posture stressing yield spread product such as slight
premium mortgage-backed securities. Given our outlook for moderately falling
intermediate term yields, this strategy should prove rewarding for our
investors.
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CHUBB TOTAL RETURN FUND
by David K. Schafer, Robert Witkoff and Michael O'Reilly
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE TOTAL RETURN FUND, THE S&P 500 INDEX AND
THE LIPPER BALANCED FUND INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations December 1, 1987. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb Total
Return Fund (the "Fund") at its inception with a similar investment in the
S&P 500 Index and the Lipper Balanced Fund Index. For the purpose of this
graph and the accompanying table, the average annual total return for the
Fund reflects all recurring expenses (advisory fees, account fees) and a
maximum 5% sales load, and includes the reinvestment of all dividends and
distributions.
THE S&P 500 INDEX AND LIPPER BALANCED FUND INDEX ARE UNMANAGED INDEXES AND
INCLUDE THE REINVESTMENT OF ALL DIVIDENDS, BUT DO NOT REFLECT THE PAYMENT
OF TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT ARE ASSOCIATED WITH
AN INVESTMENT IN THE FUND.
Nineteen ninety five was truly an outstanding year for the U.S. securities
markets. Capitalizing on this environment, the Chubb Total Return Fund rose
30.13% (excluding sales loads) in 1995. The following were the main contributing
factors to the widespread appreciation in financial assets.
- - The U.S. economy continued to boast the best of all worlds; moderate economic
growth and modest inflation.
- - U.S. interest rates fell most of the year and the Federal Reserve cut interest
rates moderately in both July and December of last year.
- - Corporate profits continued to exceed Wall Street's expectations while rising
at double digit rates for most of the year.
continued
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- - Equity mutual funds continued to experience record levels of cash inflows.
- - Merger and acquisition activity was strong throughout the year.
No matter how you assess the U.S. stock market advance last year the most
impressive part of the surge was the breadth of the advance and its historical
perspective. Much attention was showered on the Dow's breakthrough of two
millenniums (4000 and 5000) but the good fortune spread to many of the other
broad market averages. For instance, the NASDAQ market rose 41.12%, Russell 2000
28.45%, and the S&P 500 37.45%. For stock market historians, 1995 was the best
year for U.S. stocks since 1958, the second 30 percent plus year this decade
(30.55% in 1991) and the sixth best year since 1926. Likewise, bond market
returns were excellent, although it could not keep up with soaring stock prices.
The average return for the Lehman Brothers Government Bond Index was 18.34% in
1995.
The huge runup in stock prices triggered many opportunistic changes in our
portfolio. On the sell side we eliminated the following positions last year:
Anheuser-Busch, Baxter, Boeing, Polaroid, Telemex, and Toll Bros. We were also
the beneficiary of three takeovers last year: E-Systems, Fleet Mortgage, and
First Federal of Michigan. The following stock positions were initiated in 1995:
Archer-Daniels-Midland, Atlantic Richfield, Borg-Warner, Canadian Pacific,
Federal Express, Hanson, Asian Pulp & Paper, and YPF Sociedad Anonima (please
refer to the detailed schedule of investments on pages 3 and 4). As always, we
employed the same disciplined long-term approach for our stock selection. We
invested in securities whose price/earnings ratios were less than that of the
S&P 500, although our analysis showed they had higher prospective earnings
growth rates. Conversely, we sold those stocks that no longer met these
investment standards. Our bond investments continued to favor U.S. Treasury
securities.
We are cautiously optimistic regarding the overall outlook for 1996. On the
positive side, economic growth is slowing, but modestly positive, while
inflation is still subdued. Interest rates in this environment should head lower
and cash continues to pour into the stock market. If short-term interest rates
decline as we expect, bond funds will benefit from money moving from money
market funds. From an historical vantage point, stocks have advanced in 10 of
the last 12 presidential election years. The end result should be further
advances in stock and bond prices, but much slower and narrower in scope than
last year. This will require even more focus on individual stock selection and
caution regarding credit quality.
We believe our disciplined value approach should continue to reward our
shareholders over the long-term.
iv
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CHUBB TAX-EXEMPT FUND
by Frederick W. Gaertner and Thomas J. Swartz, III
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE TAX-EXEMPT FUND
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations December 1, 1987. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb Tax-
Exempt Fund (the "Fund") made at its inception with a similar investment in
the Lehman Brothers Municipal Bond Index. For the purposes of this graph
and the accompanying table, the average annual total return for the Fund
reflects all recurring expenses (advisory fees, account fees) and a maximum
3% sales load, and includes the reinvestment of all dividends and
distributions.
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX AND INCLUDES
THE REINVESTMENT OF ALL DIVIDENDS, BUT DOES NOT REFLECT THE PAYMENT OF
TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT ARE ASSOCIATED WITH AN
INVESTMENT IN THE FUND.
Steady but modest economic growth and restrained inflation provided a favorable
backdrop for a substantial decline in long-term interest rates during 1995. The
yield on the long-term Treasury bond fell 189 basis points during the year,
while the Municipal Bond Buyer 20 yield declined by a smaller 127 basis points.
As a result, long-term municipal bonds yielded close to 90% of Treasury bonds at
the end of 1995, partially reflecting market concerns that tax reform may reduce
the relative attractiveness of municipal bonds. Total municipal bond volume in
1995 declined by 4.9% from the prior year to $156 billion.
The Fund's 12.38% average annual total return (net of all expenses and sales
loads) for 1995 was substantially above its 8.62% annual average since its
inception. Our historical rate of return has been slightly below the 8.9% annual
performance of the Lehman Municipal Bond Index. However, it should be noted that
the Lehman Index is a difficult measure for all municipal funds, because it
includes no operating expenses and transaction costs and is always fully
invested. Moreover, the Fund's higher coupon profile and shorter maturity
structure relative to the Lehman Index reflect our strategy to cushion the Fund
against any potential volatility associated with tax reform.
The municipal market in early 1996 now offers investors respectable returns
relative to inflation and attractive yields compared to other fixed income
investments on a tax-adjusted basis. The major posi-
continued
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tive factor for the municipal market continues to be the favorable supply and
demand picture. It has been estimated that the total par value of outstanding
municipal bonds declined by $38 billion during 1995 and may be reduced by an
additional $36 billion during 1996. Declines in new money issuance are expected
to be even more pronounced in certain sectors, such as electric utilities; and
in a limited number of states, such as Texas. The declining supply, together
with fairly stable demand, creates a favorable technical underpinning for the
municipal market.
Retail demand for municipal securities has recently diminished, reflecting
concerns regarding tax reform and the Flat Tax. The recent recommendations of
the Kemp Commission endorsing a Flat Tax were extremely vague, making it
difficult to evaluate the revenue neutrality of the plan and the impact on
middle class taxes. However, if some of the more popular preferences of the Kemp
Commission were implemented in conjunction with a Flat Tax, such as maintenance
of mortgage interest deductions and charitable contributions, along with
deductions of payroll taxes, the marginal tax rate would undoubtedly move above
20%. Uncertainty regarding tax reform has created opportunities in the municipal
market. For example, at current rates, the taxable equivalent yield for
municipal bonds is 7.5% for individuals in the 28% bracket and close to 9% for
investors with a 39.6% marginal tax rate. Many institutional investors and some
retail customers have apparently concluded that a long-term municipal yield
equal to 90% of Treasuries appears to be generous compensation for the possible
risk of tax reform. Moreover, the lingering impact of recently high real
interest rates and sizable consumer debt burdens should restrain economic growth
in 1996, which would be viewed positively by the bond markets.
Both of the Fund's managers have extensive research and portfolio management
expertise which stems from a cumulative 40 years employment experience, much of
it with Wall Street investment firms and banks. During 1995, we continued to
manage the Fund according to the following principles that have historically
contributed to our success:
- - Investment commitments are "credit-driven", as we search for and identify
value in the municipal marketplace. It is becoming increasingly important to
utilize a proactive credit/market approach to identify bonds that should not
only be purchased, but also current holdings that should be eliminated. For
example, we continue to overweight midwestern and Texas holdings. Midwestern
bonds have been strong relative performers, as the region benefits from
increased diversification and a rejuvenated industrial sector. Economic growth
in Texas has outpaced the national growth rate for five straight years and is
expected to outperform the U.S. economy in the near future, boosted by NAFTA.
Moreover, principal redemptions of Texas municipal bonds are expected to be
more than double total new money issuance within the state during 1996, which
should bolster trading values of Texas bonds. We avoided purchases in regions
with weak underlying economies and financial pressures. We also did not
leverage the portfolio through the use of derivative securities. The Fund
continued its commitment to high quality state housing bonds with attractive
current yields and highly rated obligations of multi-hospital systems.
- - We seek to provide a high quality stream of current tax-exempt income
consistent with managing the risk to invested capital. Given the recent narrow
yield differential between higher and lower rated credits, our new purchases
during 1995 were concentrated in the higher-rated Aa and Aaa categories.
- - Chubb leverages its presence as a major tax-exempt institutional investor to
access and utilize the product, research and market-making capabilities of the
major institutional dealers in the marketplace.
Through the application of these investment principles, we strive to deliver the
competitive total returns that our shareholders have enjoyed to date. The past
year was one of the most successful years ever for the fixed income markets.
While we would not anticipate returns of the same magnitude in 1996, the
fundamentals for the municipal market remain positive.
vi
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CHUBB GROWTH & INCOME FUND
by David K. Schafer and Robert Witkoff
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
GROWTH & INCOME FUND AND THE S &P 500 INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations December 1, 1987. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb Growth
and Income Fund (the "Fund") at its inception with a similar investment in
the S&P 500 Index. For the purposes of this graph and the accompanying
table, the average annual total return for the Fund reflects all recurring
expenses (advisory fees, account fees) and a maximum 5% sales load, and
includes the reinvestment of all dividends and distributions.
THE S&P 500 INDEX IS AN UNMANAGED INDEX AND INCLUDES THE REINVESTMENT OF
ALL DIVIDENDS, BUT DOES NOT REFLECT THE PAYMENT OF TRANSACTION COSTS,
ADVISORY FEES OR EXPENSES THAT ARE ASSOCIATED WITH AN INVESTMENT IN THE
FUND.
Nineteen ninety five was truly an outstanding year for the U.S. stock market;
benefiting from ideal conditions for financial assets. Capitalizing on this
environment, the Growth and Income Fund rose 35.52% (excluding sales loads) in
1995 versus a 37.45% rise for the S&P 500. It doesn't get much better for the
financial markets than the near perfect market conditions that they operated in
for most of 1995. The following were the main contributing factors to the
widespread appreciation in financial assets.
- - The U.S. economy continued to boast the best of all worlds; moderate economic
growth and modest inflation.
- - U.S. interest rates fell most of the year and the Federal Reserve cut interest
rates moderately in both July and December of last year.
- - Corporate profits continued to exceed Wall Street's expectations while rising
at double digit rates for most of the year.
- - Equity mutual funds continued to experience record levels of cash inflows.
- - Merger and acquisition activity was strong throughout the year.
continued
vii
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No matter how you assess the U.S. stock market advance last year, the most
impressive part of the surge was the breadth of the advance and its historical
perspective. Much attention was showered on the Dow's breakthrough of two
millenniums (4000 and 5000) but the good fortune spread to many of other broad
market averages. For instance, the NASDAQ market rose 41.12%, Russell 2000
28.45%, and the S&P 500 37.45%. Leadership was most notable in the technology
and financial related industries and in fact performance was almost impossible
without some exposure in these two sectors, but many other industries shared in
the party. Interestingly, 1995 marked a record fifth year without a 10%
correction in the stock market. Moreover, the market was never down more than 4%
in the entire year. For stock market historians, 1995 was the best year for U.S.
stocks since 1958, the second 30 percent plus year this decade (30.55% in 1991)
and the sixth best year since 1926.
The huge runup in stock prices triggered many opportunistic changes in our
portfolio. On the sell side we eliminated the following positions last year:
Anheuser-Busch, Baxter, Boeing, Polaroid, Telemex, and Toll Bros. We were also
the beneficiary of three takeovers last year: E-Systems, Fleet Mortgage, and
First Federal of Michigan. The following stock positions were initiated in 1995:
Archer-Daniels-Midland, Atlantic Richfield, Borg-Warner, Canadian Pacific,
Federal Express, Hanson, Asian Pulp & Paper, and YPF Sociedad Anonima (please
refer to the detailed schedule of investments on pages 10 and 11). As always, we
employed the same disciplined long-term approach for our stock selection. We
invested in securities whose price/earnings ratios were less than that of the
S&P 500, although our analysis showed they had higher prospective earnings
growth rates. Conversely, we sold those stocks that no longer met these
investment standards.
We are cautiously optimistic regarding the overall outlook for 1996. On the
positive side, economic growth is slowing but modestly positive while inflation
is still subdued. Interest rates in this environment should head lower and cash
continues to pour into the stock market. From an historical vantage point,
stocks have advanced in 10 of the last 12 presidential election years. Reasons
for caution are slowing corporate profits and a possible pullback given last
years well above average returns. The end result should be further stock market
advances, but much slower and narrower in scope than last year. This will
require even more focus on individual stock selection.
Diversification continued to be monitored closely in 1995. To assure proper
diversification, no more than 20% of the portfolio was invested in any one
industry group and no one security represented more than 3% of the portfolio's
market value when purchased. Global securities continue to provide extra value
for our portfolio. As of December 31, 1995 foreign securities represented 14.87%
of the Funds market value.
We believe our disciplined value approach should continue to reward our
shareholders over the long term.
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CHUBB CAPITAL APPRECIATION FUND
by Robert Witkoff
Chubb Asset Managers, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CAPITAL APPRECIATION FUND,
THE S&P 500 INDEX AND THE LIPPER EQUITY MID CAP INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations September 1, 1995. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb Capital
Appreciation Fund (the "Fund") at its inception with a similar investment
in the S&P 500 Index and the Lipper Equity Mid Cap Index. For the purposes
of this graph and the accompanying table, the average annual total return
for the Fund reflects all recurring expenses (advisory fees, account fees)
and a maximum 5% sales load, and includes the reinvestment of all dividends
and distributions.
THE S&P 500 INDEX AND THE LIPPER EQUITY MID CAP INDEX ARE UNMANAGED INDEXES
AND INCLUDE THE REINVESTMENT OF ALL DIVIDENDS, BUT DO NOT REFLECT THE
PAYMENT OF TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT ARE ASSOCIATED
WITH AN INVESTMENT IN THE FUND.
We are happy to report on and share with you the results for our initial quarter
for the Chubb Capital Appreciation Fund. In doing so, we will take the
opportunity to discuss the merits of Midcap stocks, reiterate the chief
directives of our charter, outline our investment approach, and discuss our 1996
investment outlook.
1995 was an amazing year for financial assets. The stock market recorded its
best year in two decades and established a record number of new highs. Given
that backdrop, performance wise, it was not an ideal setting for launching a new
portfolio. In spite of this, our portfolio had an auspicious beginning. The
Capital Appreciation Fund rose 4.60% (without a load) for the first four months
and 3.22% for the fourth quarter. This compared to a rise of 4.45% and 1.27% for
the Lipper Equity Mid-Cap Index and 3.89% and 1.43% for the S&P Mid-Cap Index,
over the same time periods. Even more impressive is that this performance was
achieved while the fund was under-invested during a surging initial stock market
month in September.
continued
ix
<PAGE> 13
Historically, we have found the Midcap market to be a valuable source of value
stock selections for all of our equity funds. The principle investment
attributes which Midcap stocks provide us are an attractive combination of value
and growth. As in all our funds, this is the most important part of our overall
investment strategy, required in all our stock recommendations. Loosely defined,
Midcap stocks have market capitalizations ranging between 300 million and 2.5
billion. This intermediate size offers many advantages. First, as a group they
are big enough to provide both adequate liquidity and a seasoned historical
operating record. Second, they tend to be less followed by Wall Street and
under-owned by institutional investors. Lastly, and most importantly, they
typically have higher prospective growth rates then the overall market yet
conversely sell at discount price/earnings valuations. Clearly, it is for these
very reasons why we chose to initiate a portfolio dedicated solely to this value
segment of the market.
Consistent with Chubb's approach to its other funds, we are dedicated to
employing the same disciplined long term Chubb value approach in managing this
portfolio. The goal is an individually selected portfolio of stocks that pass
our rigid standards of value. In general, the stocks invested in will have
price/earnings ratios below the respective levels of the overall market.
Conversely, they also must have prospective earnings growth rates above that of
the market. Furthermore, these stocks will be equally inexpensive (pricewise) on
numerous other valuation measures which we keep track of: book value, cash flow,
and revenues. The portfolio will ultimately consist of approximately 35 to 40
equally weighted stocks. We target this size portfolio for two reasons: 1) the
portfolio is small enough to effectively manage as well as maximize the benefits
of our individual stock research, and 2) the portfolio is large enough to
achieve proper diversity. Diversity is further achieved by making sure that no
more than 20% of the portfolio is invested in any one industry and no one
security represents more then 3% of the portfolio's market value at time of
purchase. In keeping with our charter, the majority of the stocks invested in
will have market capitalizations between 500 million and 2 billion in size.
In 1995, the fund adhered to its mandate of disciplined value oriented stock
selection. We began the process of carefully building a portfolio of
attractively priced individual stocks that offered a combination of both value
and growth. At year end, the portfolio consisted of twenty-seven stocks, the
majority of which had market capitalizations between 500 million and 2 billion
in size.
We are cautiously optimistic regarding overall stock market performance for
1996. On the positive side most of the favorable conditions that were
instrumental in last years advance are still present: moderate economic growth,
subdued inflation, declining interest rates, and favorable supply/demand
characteristics for stocks. Reasons for caution are slowing corporate profits
and a possible pullback to more normalized historical stock returns. Overall, we
would look for a smaller and narrower advance in the U.S. stock market this
year. This should be an advantageous market for individual stock selection. In
regards to stock strategy, we will continue to search the market and
opportunistically add stocks that satisfy our investment criteria.
We believe this disciplined value approach should produce superior long-term
returns for our shareholders.
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CHUBB GLOBAL INCOME FUND
by Roger C. P. Brookhouse, Marjorie D. Raines
and Caroline Colbourne
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE GLOBAL INCOME FUND,
THE SALOMON WORLD GOVT BOND INDEX, AND THE LIPPER GLOBAL FUND INDEX
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
Commencement of operations September 1, 1995. Past performance is not
predictive of future performance.
This graph compares an initial $10,000 investment made in the Chubb Global
Income Fund (the "Fund") at its inception with a similar investment in the
Salomon World Govt Bond Index and the Lipper Global Fund Index. For the
purposes of this graph and the accompanying table, the average annual total
return for the Fund reflects all recurring expenses (advisory fees, account
fees) and a maximum 3% sales load, and includes the reinvestment of all
dividends and distributions.
THE SALOMON WORLD GOVT BOND INDEX AND THE LIPPER GLOBAL FUND INDEX ARE
UNMANAGED INDEXES AND INCLUDE THE REINVESTMENT OF ALL DIVIDENDS, BUT DO NOT
REFLECT THE PAYMENT OF TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT
ARE ASSOCIATED WITH AN INVESTMENT IN THE FUND.
Following the severe bear market of 1994, 1995 proved to be a record year for
world bond market performance in local currency terms. The environment in which
this occurred was positive for bonds, i.e.; subdued growth, low inflation, and
easing monetary policy.
The last quarter of 1995, with the exception of Japan, continued the positive
theme. The 30 year U.S. Treasury Bond finished the year with a yield just below
6%, close to 200bp below where it started the year. Canada and Australia also
put in strong fourth quarter and yearly performance. In Europe, despite
political and economic uncertainties over Monetary Union, monetary easing
continued with several countries reducing interest rates as inflation remained
benign and growth came in below forecasts. As a result, most bond markets,
especially the high yielding countries, provided strong performance during the
last quarter. Japan was the exception showing a negative return reflecting a
long delayed but fragile economic upturn, placing it last in terms of world
performance
continued
xi
<PAGE> 15
ranking for the quarter and the year; although it still managed to provide
positive double digit returns for the year.
All the major currencies strengthened versus the Japanese yen in the last
quarter of 1995, the U.S. dollar was up 3.8% and the German deutschemark 3.1%.
Apart from the Swedish krona, the Spanish peseta, the Italian lira and the
French franc, other major currencies weakened versus the U.S. dollar in the last
quarter.
OUTLOOK
In Japan, the impact of the huge fiscal stimulus during 1995 is expected to
positively impact economic growth albeit at a gradual rate. The Japanese yen
should weaken versus the U.S. dollar but not as much as the European currencies,
and Japanese bond yields are likely to drift higher over the next year. The
European economies have weakened significantly. Rising structural unemployment,
high real interest rates and the struggle to meet the restrictive Maastricht
Treaty Monetary Union budget targets are influencing pressures to continue
monetary easing thereby creating a positive bond environment. The currencies
will remain weak and be volatile especially as various countries prepare for
general elections. The U.S. dollar is expected to continue to strengthen in
1996.
The Fund's investment strategy has reflected a positive view on European bond
markets and U.S. dollar strength. The portfolio has been overweight in the most
attractive bond markets but with currencies partially hedged back into U.S.
dollars. Within the Japanese market both the bonds and the currency continue to
be underweighted. In addition, a small proportion of the portfolio was invested
in U.S. dollar denominated emerging markets, to take advantage of the U.S.
dollar view while in an attempt to increase the yield on the fund.
Looking into 1996, the view remains favorable to bonds in European markets, and
negative on European currencies versus the U.S. dollar and the Japanese yen.
xii
<PAGE> 16
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION
MONEY MARKET FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
PORTFOLIO QUALITY
% OF
RATING PORTFOLIO
AAA 100.00%
DOLLAR WEIGHTED AVERAGE MATURITY
RATING DAYS
AAA 13.36
DOLLAR WEIGHTED AVERAGE COUPON
4.98%
GOVERNMENT SECURITIES FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
DOLLAR WEIGHTED AVERAGE MATURITY
YEARS
22.72
PORTFOLIO DURATION
YEARS
4.58
DOLLAR WEIGHTED AVERAGE COUPON
8.39%
30 DAY SEC YIELD
6.48%
++ Represents market value of investments plus uninvested cash.
xiii
<PAGE> 17
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION -- CONTINUED
TOTAL RETURN FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
W.R. Berkley Corporation 2.90%
Philip Morris Companies, Inc. 2.87%
Mellon Bank Corp. 2.71%
American Home Products, Inc. 2.62%
Progressive Corporation 2.46%
General Motors Corp., Class H 2.43%
Old Republic International Corp. 2.40%
YPF Sociedad Anonima S.A., ADR 2.37%
Redman Industries, Inc. 2.32%
Canadian Pacific, Ltd. 2.28%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Insurance 7.77%
Banking 6.55%
Oil - International 4.64%
Transportation - Rail & Truck 4.42%
Food Processing 4.32%
Retail -- Specialty 3.82%
Financial Services 3.53%
Automotive Parts & Accessories 3.51%
Consumer Health 2.62%
Aerospace -- Defense 2.43%
</TABLE>
TAX-EXEMPT FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
PORTFOLIO QUALITY
<TABLE>
<CAPTION>
% OF
RATING PORTFOLIO
<S> <C>
AAA 32.91%
AA 31.19%
A 21.90%
BBB 5.26%
B 7.04%
Cash 1.70%
</TABLE>
DOLLAR WEIGHTED AVERAGE MATURITY
YEARS
17.96
PORTFOLIO DURATION
YEARS
7.00
30 DAY SEC YIELD
4.26%
++ Represents market value of investments plus uninvested cash.
xiv
<PAGE> 18
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION -- CONTINUED
GROWTH AND INCOME FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
Redman Industries, Inc. 4.06%
W.R. Berkley Corporation 3.90%
Old Republic International Corp. 3.71%
Archer-Daniels Midland Company 3.41%
YPF Sociedad Anonima S.A., ADR 3.36%
Mellon Bank Corporation 3.34%
American Home Products, Inc. 3.34%
Canadian Pacific, Ltd. 3.28%
Philip Morris Companies, Inc. 3.18%
Ultramar Corporation 3.17%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Insurance 10.66%
Banking 9.22%
Food Processing 6.58%
Oil - International 6.15%
Transportation - Rail & Truck 5.43%
Mining & Metals 4.95%
Retail -- Specialty 4.90%
Automotive Parts & Accessories 4.81%
Financial Services 4.36%
Building - Homes 4.06%
</TABLE>
CAPITAL APPRECIATION FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN EQUITIES PORTFOLIO
<S> <C>
YPF Sociedad Anonima S.A., ADR 3.28%
Security Connecticut Corp. 3.26%
Greenpoint Financial Corp. 3.21%
RJR Nabisco Holdings Corp. 3.12%
Ultramar Corporation 3.09%
Borg-Warner Automotive, Inc. 3.03%
Hudson Foods, Inc., Class A 2.94%
Old Republic International Corp. 2.92%
Reebok International, Ltd. 2.86%
Maytag Corporation 2.82%
</TABLE>
<TABLE>
<CAPTION>
% OF
TOP TEN INDUSTRIES PORTFOLIO
<S> <C>
Insurance 6.18%
Oil - Domestic 6.06%
Transportation - Shipping 5.41%
Automotive Parts & Accessories 5.14%
Household Appliances 4.75%
Textiles 4.61%
Financial Services 3.21%
Tobacco 3.12%
Oil - International 3.09%
Food Processing 2.94%
</TABLE>
++ Represents market value of investments plus uninvested cash.
xv
<PAGE> 19
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION -- CONTINUED
GLOBAL INCOME FUND
[GRAPHIC -- CUSTOMER WILL SUPPLY DESCRIPTION]
<TABLE>
<CAPTION>
% OF
TOP TEN COUNTRIES PORTFOLIO
<S> <C>
United States 19.84%
Germany 13.02%
France 7.63%
United Kingdom 7.20%
Netherlands 6.96%
Italy 6.58%
Brazil 5.77%
Finland 4.04%
Japan 3.87%
Spain 3.49%
</TABLE>
PORTFOLIO DURATION
YEARS
6.00
<TABLE>
<CAPTION>
% OF
TOP TEN COUNTRIES PORTFOLIO
<S> <C>
United States 19.84%
Germany 13.02%
France 7.63%
United Kingdom 7.20%
Netherlands 6.96%
Italy 6.58%
Brazil 5.77%
Finland 4.04%
Japan 3.87%
Spain 3.49%
</TABLE>
PORTFOLIO DURATION
YEARS
6.00
++ Represents market value of investments plus uninvested cash.
xvi
<PAGE> 20
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB MONEY MARKET FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- ----------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--96.49%
Federal Farm Credit Bureau Discount Note, 5.640%,
due 01/12/96 ....................................... $ 435,000 $ 434,114
Federal Home Loan Bureau Discount Note, 5.650%
due 01/08/96 ....................................... 2,200,000 2,196,892
Federal National Mortgage Association Discount Note,
5.450%, due 01/19/96 ............................... 785,000 782,623
U.S. Treasury Bill, 4.720%, due 01/18/96 ............. 3,949,000 3,939,163
----------
TOTAL SHORT-TERM
OBLIGATIONS (Cost $7,352,792) .................... 7,352,792
----------
TOTAL INVESTMENTS
(Cost $7,352,792*) ..................... 96.49% 7,352,792
Other assets, less liabilities ............. 3.51 267,414
------ ----------
TOTAL NET ASSETS ........................ 100.00% $7,620,206
====== ==========
</TABLE>
- ---------------
*Aggregate cost for Federal income tax purposes.
See notes to financial statements.
1
<PAGE> 21
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB GOVERNMENT SECURITIES FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
---------- -----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--97.20%
Federal Home Loan Mortgage Company, CMO,
Series 1058-H, 8.000%, due 04/15/21 ..................... $ 652,846 $ 677,354
Federal National Mortgage Association, Pool #029429,
9.000%, due 07/01/01 .................................... 49,479 52,107
Federal National Mortgage Association, Pool #282883,
7.000%, due 05/01/24 .................................... 223,744 225,772
Federal National Mortgage Association, Pool #306175,
7.000%, due 01/01/25 .................................... 3,860,756 3,895,742
Government National Mortgage Association, Pool #166009,
9.000%, due 06/15/16 .................................... 132,990 141,011
Government National Mortgage Association, Pool #385809,
8.500%, due 07/15/24 .................................... 1,478,462 1,553,309
Government National Mortgage Association, Pool #402766,
8.000%, due 08/15/25 .................................... 1,598,850 1,666,801
Kidder Peabody Acceptance Corporation, CMO,
Series 20-D, 9.900%, due 10/01/18 ......................... 136,643 141,584
U.S. Treasury Note, 5.375%, due 05/31/98 .................. 150,000 150,515
U.S. Treasury Note, 6.750%, due 05/31/99 .................. 320,000 334,299
U.S. Treasury Note, 8.000%, due 05/15/01 .................. 300,000 336,000
U.S. Treasury Note, 10.375%, due 11/15/12 ................. 3,125,000 4,323,237
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS (Cost $12,974,756) ........................ 13,497,731
-----------
TOTAL INVESTMENTS
(Cost $12,974,756*) .......... 97.20% 13,497,731
Other assets, less liabilities ... 2.80 388,747
------ -----------
TOTAL NET ASSETS .............. 100.00% $13,886,478
====== ===========
</TABLE>
- ---------------
*Aggregate cost for Federal income tax purposes
See notes to financial statements.
2
<PAGE> 22
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TOTAL RETURN FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK -- 70.52%
AEROSPACE -- DEFENSE--2.39%
General Motors Corporation,
Class H ..................................... 10,800 $ 530,550
-----------
AUTOMOTIVE MANUFACTURING--1.90%
Chrysler Corporation .......................... 7,600 420,850
-----------
AUTOMOTIVE PARTS & ACCESSORIES--3.46%
Borg-Warner Automotive, Inc. .................. 13,900 444,800
Cummins Engine, Inc. .......................... 8,700 321,900
-----------
766,700
-----------
BANKING--6.45%
First Chicago NBD Corp. ....................... 10,860 428,970
KeyCorp. ...................................... 11,327 410,604
Mellon Bank Corp. ............................. 11,000 591,250
-----------
1,430,824
-----------
BUILDING -- HOMES--2.28%
Redman Industries, Inc.+ ...................... 15,000 506,250
-----------
BUILDING MATERIALS--1.82%
Owens-Corning Fiberglas
Corp.+ ...................................... 9,000 403,875
-----------
COMPUTERS--1.88%
Compaq Computer Corp.+ ........................ 8,700 417,600
-----------
CONSUMER HEALTH--2.58%
American Home Products, Inc. .................. 5,900 572,300
-----------
FINANCIAL SERVICES--3.48%
Merrill Lynch & Company ....................... 7,900 402,900
PaineWebber Group, Inc. ....................... 18,450 369,000
-----------
771,900
-----------
FOOD PROCESSING--4.25%
Archer-Daniels Midland
Company ..................................... 17,700 318,600
Philip Morris Companies, Inc. ................. 6,900 624,450
-----------
943,050
-----------
FOREST PRODUCTS & PAPER--1.84%
Asia Pulp & Paper Co., Ltd.,
ADR+ ........................................ 50,100 407,062
-----------
HOLDING COMPANIES--0.93%
Hanson, PLC, ADR .............................. 13,500 205,875
-----------
HOUSEHOLD APPLIANCES--1.83%
Whirlpool Corp. ............................... 7,600 404,700
-----------
INSURANCE--7.66%
Old Republic International Corp. .............. 14,800 525,400
Progressive Corp. ............................. 11,000 537,625
W.R. Berkley Corporation ...................... 11,800 634,250
-----------
1,697,275
-----------
MINING & METALS--1.65%
Cyprus Amax Minerals Company .................. 14,000 365,750
-----------
OIL -- DOMESTIC--2.00%
Atlantic Richfield Company .................... 4,000 443,000
-----------
OIL -- INTERNATIONAL--4.57%
Exxon Corporation ............................. 6,200 496,775
YPF Sociedad Anonima S.A.,
ADR ......................................... 23,900 516,838
-----------
1,013,613
-----------
OIL -- REFINING--2.20%
Ultramar Corp ................................. 18,900 486,675
-----------
RETAIL -- SPECIALTY--3.76%
Circuit City Stores, Inc. ..................... 15,000 414,375
Sotheby's Holdings, Inc. ...................... 29,500 420,375
-----------
834,750
-----------
</TABLE>
- ---------------
+Non-income producing security.
See notes to financial statements.
3
<PAGE> 23
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TOTAL RETURN FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
RETAIL STORES--2.21%
May Department Stores
Company .................................. 11,600 $ 490,100
-----------
SHIPPING & FREIGHT--1.97%
Federal Express Corp.+ ..................... 5,900 435,863
-----------
TECHNOLOGY -- SEMICONDUCTORS--1.68%
Avnet, Inc. ................................ 8,300 371,425
-----------
TEXTILES--2.18%
Burlington Industries, Inc.+ ............... 36,900 484,312
-----------
TRANSPORTATION -- RAIL & TRUCK--4.36%
Burlington Northern Santa Fe ............... 6,000 468,000
Canadian Pacific, Ltd. ..................... 27,500 498,437
-----------
966,437
-----------
TRANSPORTATION -- SHIPPING--1.19%
Offshore Logistics, Inc.+ .................. 21,000 265,125
-----------
TOTAL COMMON STOCK
(Cost $12,640,468) ...................... 15,635,861
-----------
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS--27.50%
U.S. Treasury Note, 6.250%,
due 02/15/03 ............................. $2,750,000 2,871,168
U.S. Treasury Note, 7.250%,
due 08/15/04 ............................. 2,900,000 3,226,250
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $5,942,353) ...................... 6,097,418
-----------
TOTAL INVESTMENTS
(Cost $18,582,821*) ..................... 98.02% 21,733,279
Other assets, less liabilities ............. 1.98 438,047
------ -----------
TOTAL NET ASSETS ......................... 100.00% $22,171,326
====== ===========
</TABLE>
- ---------------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
4
<PAGE> 24
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TAX-EXEMPT FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
MUNICIPAL OBLIGATIONS--96.66%
ALASKA--1.10%
Anchorage, Alaska, Hospital Revenue, (Sisters of Providence Project),
Series 1991, 6.750%, due 10/01/02+ ......................................... $150,000 $ 167,792
----------
COLORADO--0.76%
Platte River Power Authority, Colorado, Power Revenue,
Series AA, 6.875%, due 06/01/16+ ........................................... 110,000 115,628
----------
CONNECTICUT--1.19%
Connecticut State, General Obligation, Series C, 7.000%,
Prerefunded to 09/15/00 at 102+ ............................................ 160,000 180,997
----------
DISTRICT OF COLUMBIA--8.72%
District of Columbia, Cert. of Participation, 7.300%, call 01/01/03
at 102+ .................................................................... 300,000 313,052
District of Columbia, Series 93-A, Refunding, 5.875%, due 06/01/05 ........... 500,000 500,330
District of Columbia, Series A-3, 5.500%, due 06/01/06 ....................... 250,000 242,851
Metropolitan Washington Airport Authority Revenue Bonds,
Series 92A, MBIA Insured, 6.500%, due 10/01/07+ ............................ 250,000 274,832
----------
1,331,065
----------
FLORIDA--1.09%
Florida State Board of Education, Capital Outlay, 7.125%,
Prerefunded to 06/01/96 at 102+ ............................................ 100,000 103,452
Orlando & Orange County Expressway Authority, Florida Expressway
Revenue, Senior Lien, 7.250%, Prerefunded to 07/01/96 at 102+ .............. 60,000 62,284
----------
165,736
----------
GEORGIA--2.51%
Cartersville, Georgia Development Authority, Water & Wastewater
Facilities-Anheuser Busch, AMT, 6.750%, due 02/01/12+ ...................... 250,000 274,429
Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue,
Series K, 7.250%, due 07/01/10+ ............................................ 100,000 108,485
----------
382,914
----------
</TABLE>
- ---------------
*Issued with call provisions.
See notes to financial statements.
5
<PAGE> 25
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TAX-EXEMPT FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
ILLINOIS--9.54%
Chicago, Illinois, General Obligation, FGIC, 5.500%, due 01/01/24+ ........... $300,000 $ 301,833
Cook County, Illinois, General Obligation, MBIA Insured, Series 1990,
7.000%, due 11/01/99 ....................................................... 150,000 164,569
Illinois Housing Development Authority, Residential Mortgage Revenue,
Series B, 7.750%, due 08/01/23+ ............................................ 75,000 78,727
Illinois State Sales Tax Revenue, 6.800%, Prerefunded to 06/15/00
at 102+ .................................................................... 150,000 167,748
Illinois State Toll Highway, Series 92A, 6.375%, due 01/01/15+ ............... 350,000 372,164
Metropolitan Pier & Exposition Authority, Illinois, McCormick
Place Expansion Project, Series 92A, 6.500%, due 06/15/27+ ................. 350,000 370,510
-----------
1,455,551
-----------
INDIANA--8.04%
Indiana Bond Bank, Revenue, State Revolving Fund,
6.000%, due 02/01/15+ ...................................................... 550,000 559,594
Indiana Municipal Power Supply, 5.650%, MBIA, Insured, AAA
due 01/01/16+ .............................................................. 500,000 506,680
Indiana State Housing Finance Authority, Single Family Mortgage 1990,
Series C, 7.800%, due 01/01/22+ ............................................ 150,000 160,548
-----------
1,226,822
-----------
KENTUCKY--1.18%
Kentucky Turnpike Authority, Economic Development Revenue,
7.250%, Prerefunded to 05/15/00 at 101.50+ ................................. 160,000 180,702
-----------
LOUISIANA--1.46%
Jefferson, Louisiana, Sales Tax Revenue, Refunding, FGIC Insured,
Series A, 6.750%, Prerefunded to 12/01/06+ ................................. 200,000 222,854
-----------
MAINE--1.58%
Maine Educational Loan Authority, Series 92A, 6.950%, due 12/01/07+ .......... 220,000 241,570
-----------
MINNESOTA--0.70%
Northern Municipal Power Agency, Minnesota, Electric System Revenue,
Series A, 7.250%, due 01/01/16+ ............................................ 100,000 107,495
-----------
MISSOURI--1.13%
Missouri Health & Educational Facilities Authority, St. Luke's Hospital,
MBIA Insured, 7.000%, Prerefunded to 11/15/01 at 102+ ...................... 150,000 172,403
-----------
NEVADA--1.08%
Nevada State, General Obligation, Series A, 6.750%,
Prerefunded to 08/01/99 at 102+ ............................................ 150,000 165,250
-----------
</TABLE>
- ---------------
+Issued with call provisions.
See notes to financial statements.
6
<PAGE> 26
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TAX-EXEMPT FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
NEW HAMPSHIRE--1.48%
New Hampshire Turnpike System, Revenue, Series A, FGIC Insured,
6.750%, due 11/01/11+ ...................................................... $200,000 $ 226,819
----------
NEW JERSEY--4.80%
New Jersey Economic Development Authority, The Seeing Eye, Inc.
Project, 7.300%, due 04/01/11+ ............................................. 250,000 266,358
New Jersey Wastewater Treatment, Revenue, 6.875%, due 06/15/07+ .............. 180,000 198,801
Salem County, New Jersey, PCR Waste Disposal Authority Revenue,
E.I. DuPont Project, 6.500%, due 11/15/21+ ................................. 250,000 267,852
----------
733,011
----------
NEW YORK--10.34%
Metropolitan Transportation Authority, New York, Transit Facilities,
Series 2, 8.000%, Prerefunded to 07/01/98 at 102+ .......................... 100,000 111,487
Municipal Assistance Corporation for City of New York, Series 57, 7.250%,
due 07/01/08+ .............................................................. 125,000 129,489
New York City, New York, General Obligation, Series H, 6.875%, due
02/01/02 ................................................................... 250,000 268,170
New York City, New York, General Obligation, Series H,
Subseries H-I, 5.800%, due 07/01/04 ........................................ 250,000 253,357
New York State Local Government Assistance Corporation, Series B,
5.500%, due 04/01/21+ ...................................................... 450,000 449,348
New York State Medical Care Facilities, Finance Agency Revenue,
FHA Insured, Mortgage Hospital A, 8.000%, due 02/15/25+ .................... 100,000 108,426
New York State Thruway Authority, Highway and Bridge Trust Fund,
Series A, 5.600%, due 04/01/2010 ........................................... 250,000 256,914
----------
1,577,191
----------
NORTH CAROLINA--0.40%
North Carolina Municipal Power Agency, Number 1, Catawba Electric
Revenue, 7.000%, due 01/01/18+ ............................................. 5,000 5,050
North Carolina Municipal Power Agency, Number 1, Catawba Electric
Revenue, 7.000%, Prerefunded to 01/01/96 at 101+ ........................... 55,000 55,560
----------
60,610
----------
OKLAHOMA--4.88%
Grand River Dam Power Authority, Oklahoma, Revenue, 7.000%,
Prerefunded to 06/01/97 at 102+ ............................................ 160,000 169,728
Oklahoma Industrial Development Authority, Sisters of Mercy, Series A,
5.000%, due 06/01/13+ ...................................................... 600,000 574,400
----------
744,128
----------
</TABLE>
- ---------------
+Issued with call provisions.
See notes to financial statements.
7
<PAGE> 27
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB TAX-EXEMPT FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- ------------
<S> <C> <C>
PENNSYLVANIA--6.78%
Pennsylvania Housing Finance Agency, FNMA, Issue 1993, 5.750%,
due 07/01/14+ ......................................................... $ 700,000 $ 706,115
Philadelphia, Pennsylvania Hospital & Higher Education Authority,
Children's Hospital, 5.000%, due 02/15/01+ ............................ 350,000 329,017
-----------
1,035,132
-----------
PUERTO RICO--1.35%
Puerto Rico Commonwealth Highway Authority, Series Q, 8.000%,
Prerefunded to 07/01/00 at 102+ ....................................... 175,000 205,416
-----------
SOUTH CAROLINA--0.92%
South Carolina State Public Service Authority, Electric Revenue &
Electric System Expansion Revenue, Series A, 7.300%, due 07/01/21+ .... 135,000 140,111
-----------
TENNESSEE--5.07%
Memphis-Shelby Company, Tennessee Airport Authority
(Federal Express Corp.), 6.750%, due 09/01/12+ ........................ 250,000 268,269
Tennessee Housing Development Agency, 1993 Series A, 5.900%,
due 07/01/18+ ......................................................... 500,000 504,702
-----------
772,971
-----------
TEXAS-- 8.85%
Austin, Texas, Utility System Revenue Combined, Series C, 7.300%,
Prerefunded to 11/15/01 at 100+ ....................................... 60,000 68,956
Brazos River Authority, Texas, Revenue Collateral, Houston Light
& Power Co., 7.750%, due 10/01/15+ .................................... 60,000 65,352
Houston, Texas, Independent School District, Permanent School Fund,
0% coupon, Eff. Yield 6.700%, due 08/15/13 ............................ 1,150,000 448,005
Lower Colorado River Authority, Texas, Revenue, Priority, 7.000%,
Prerefunded to 01/01/97 at 102+ ....................................... 100,000 104,911
Texas State Public Financing Authority Revenue, Series A, 7.375%,
Prerefunded to 02/01/98 at 100+ ....................................... 140,000 149,300
Texas Veterans Housing Association, Series B-1, AMT,
5.700%, due 12/01/14+ ................................................. 510,000 514,202
-----------
1,350,726
-----------
UTAH--0.96%
Intermountain Power Agency, Utah, Special Obligation Revenue,
5th Crossover Refunding, 7.200%, due 07/01/19+ ........................ 140,000 147,389
-----------
VIRGINIA--0.68%
Virginia State Housing Development Authority, Commonwealth Mortgage,
6.700%, due 07/01/08+ ................................................. 100,000 103,042
-----------
</TABLE>
- ---------------
+Issued with call provisions.
See notes to financial statements.
8
<PAGE> 28
CHUBB INVESTMENTS FUNDS, INC.
SCHEDULE OF INVESTMENTS
CUBB TAX-EXEMPT FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- ------------
<S> <C> <C>
WASHINGTON--10.07%
Lewis County, Washington, PUD #1, Revenue Series 91, 7.000%,
Prerefunded to 10/01/01 at 102+ ........................................... $250,000 $ 286,740
Washington Health Care Facilities Authority, Revenue, MBIA Insured,
(Group Health Co-Op), 6.750%, due 12/01/11+ ............................... 300,000 321,900
Washington Health Care Facilities Authority, Revenue, Series 93,
6.250%, due 10/01/13+ ..................................................... 500,000 515,777
Washington Housing Finance Commission, GNMA/FNMA MBS Programs,
7.100%, due 07/01/22+ ..................................................... 145,000 152,737
Washington State Public Power Supply System, Nuclear Project Number 2,
Revenue, Series 90C, 7.625%, due 07/01/10+ ................................ 100,000 115,983
Washington State Public Power Supply System, Nuclear Project Number 3,
Revenue, Series B, 7.500%, Prerefunded to 07/01/00 at 102+ ................ 125,000 143,345
-----------
1,536,482
-----------
TOTAL MUNICIPAL OBLIGATIONS (Cost $13,751,674)...... 14,749,807
-----------
TOTAL INVESTMENTS
(Cost $13,751,674*) ............................... 96.66% 14,749,807
Other assets, less liabilities ....................... 3.34 509,542
------ -----------
TOTAL NET ASSETS ................................... 100.00% $15,259,349
====== ===========
</TABLE>
- ---------------
*Aggregate cost for Federal income tax purposes.
+Issued with call provisions.
See notes to financial statements.
9
<PAGE> 29
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB GROWTH AND INCOME FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK--99.18%
AUTOMOTIVE MANUFACTURING--2.98%
Chrysler Corporation ....................... 15,700 $ 869,387
----------
AUTOMOTIVE PARTS & ACCESSORIES--4.80%
Borg-Warner Automotive, Inc. ............... 26,600 851,200
Cummins Engine, Inc. ....................... 14,800 547,600
----------
1,398,800
----------
BANKING--9.20%
First Chicago NBD Corp. .................... 21,901 865,089
KeyCorp. ................................... 23,311 845,024
Mellon Bank Corp. .......................... 18,050 970,188
----------
2,680,301
----------
BUILDING -- HOMES--4.05%
Redman Industries, Inc.+ ................... 35,000 1,181,250
----------
BUILDING MATERIALS--3.13%
Owens-Corning Fiberglas
Corp.+ ................................... 20,300 910,963
----------
COMPUTERS--2.78%
Compaq Computer Corp.+ ..................... 16,900 811,200
----------
CONSUMER HEALTH--3.33%
American Home Products, Inc. ............... 10,000 970,000
----------
FINANCIAL SERVICES--4.35%
Merrill Lynch & Company .................... 11,200 571,200
PaineWebber Group, Inc. .................... 34,850 697,000
----------
1,268,200
----------
FOOD PROCESSING--6.56%
Archer-Daniels Midland
Company .................................. 55,000 990,000
Philip Morris Companies, Inc. .............. 10,200 923,100
----------
1,913,100
----------
FOREST PRODUCTS--2.70%
Asia Pulp & Paper Co., Ltd.,
ADR+ ..................................... 96,900 787,312
----------
HOLDING COMPANIES-- 2.62%
Hanson PLC, ADR ............................ 50,100 764,025
----------
HOUSEHOLD APPLIANCES--2.16%
Whirlpool Corp. ............................ 11,800 628,350
----------
INSURANCE--10.63%
Old Republic International Corp. ........... 30,400 1,079,200
Progressive Corp. .......................... 18,100 884,638
W. R. Berkley Corp. ........................ 21,100 1,134,125
----------
3,097,963
----------
MINING & METALS--4.94%
Cyprus Amax Minerals Co. ................... 23,900 624,387
Inco, Ltd., ADR ............................ 24,500 814,625
----------
1,439,012
----------
OIL -- DOMESTIC--2.89%
Atlantic Richfield Company ................. 7,600 841,700
----------
OIL -- INTERNATIONAL--6.13%
Exxon Corporation .......................... 10,100 809,263
YPF Sociedad Anonima S.A.,
ADR ...................................... 45,200 977,450
----------
1,786,713
----------
OIL -- REFINING--3.16%
Ultramar Corp. ............................. 35,800 921,850
----------
RETAIL -- SPECIALTY--4.89%
Circuit City Stores, Inc. .................. 27,000 745,875
Sotheby's Holdings, Inc. ................... 47,700 679,725
----------
1,425,600
----------
RETAIL STORES--2.62%
May Department Stores
Company .................................. 18,100 764,725
----------
</TABLE>
- ---------------
+Non-income producing security.
See notes to financial statements.
10
<PAGE> 30
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB GROWTH AND INCOME FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK--(CONTINUED)
SHIPPING & FREIGHT--2.64%
Federal Express Corp.+ ....................... 10,400 $ 768,300
-----------
TECHNOLOGY -- SEMICONDUCTORS--2.69%
Avnet, Inc ................................... 17,500 783,125
-----------
TEXTILES--2.74%
Burlington Industries, Inc.+ ................. 60,800 798,000
-----------
TRANSPORTATION -- RAIL & TRUCK--5.41%
Burlington Northern Santa Fe ................. 8,000 624,000
Canadian Pacific, Ltd. ....................... 52,600 953,375
-----------
1,577,375
-----------
TRANSPORTATION -- SHIPPING--1.78%
Offshore Logistics, Inc.+ .................... 41,000 517,625
-----------
TOTAL COMMON STOCK
(Cost $23,725,919) ........................ 28,904,876
-----------
TOTAL INVESTMENTS
(Cost $23,725,919*) ....................... 99.18% 28,904,876
Other assets, less liabilities ............... 0.82 239,285
------ -----------
TOTAL NET ASSETS ........................... 100.00% $29,144,161
====== ===========
</TABLE>
- ---------------
*Aggregate cost for Federal income tax purposes.
+Non-income producing security.
See notes to financial statements.
11
<PAGE> 31
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CAPITAL APPRECIATION FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-67.56
AUTOMOTIVE PARTS & ACCESSORIES-5.09%
Borg-Warner Automotive, Inc. ............... 1,500 $ 48,000
Cummins Engine, Inc. ....................... 900 33,300
----------
81,300
----------
COMMERCIAL SERVICES-2.64
PHH Corp ................................... 900 42,075
----------
ELECTRICAL EQUIPMENT-2.71%
Ametek, Inc. ............................... 2,300 43,125
----------
FINANCIAL SERVICES-3.18%
Greenpoint Financial Corp. ................. 1,900 50,825
----------
FOOD PROCESSING-2.92%
Hudson Foods Inc., Class A ................. 2,700 46,575
----------
FOOD PRODUCERS-2.71%
Archer-Daniels Midland Co. ................. 2,400 43,200
----------
FOREST PRODUCTS-2.55%
Asia Pulp & Paper Co., Ltd.,
ADR+ ................................... 5,000 40,625
----------
HOLDING COMPANIES-2.39%
Hanson, PLC, ADR ........................... 2,500 38,125
----------
HOUSEHOLD APPLIANCES-4.70%
Maytag Corp. ............................... 2,200 44,550
Sunbeam Corporation ........................ 2,000 30,500
----------
75,050
----------
INSURANCE-6.12%
Old Republic International
Corp. .................................. 1,300 46,150
Security Connecticut Corp. ................. 1,900 51,538
----------
97,688
----------
MININGS & METALS-2.45%
Cyprus Amax Minerals
Company ................................ 1,500 39,188
----------
OIL - DOMESTIC-6.01%
Diamond Shamrock, Inc. ..................... 1,700 43,988
YPF Sociedad Anonima S.A.,
ADR .................................... 2,400 51,900
----------
95,888
----------
OIL - INTERNATIONAL-3.06%
Utlramar Corp. ............................. 1,900 48,925
----------
RETAIL - SPECIALTY-2.60%
Circuit City ............................... 1,500 41,437
----------
SHOES-2.83%
Reebok International, Ltd. ................. 1,600 45,200
----------
STEEL-2.58%
LTV Corp.+ ................................. 3,000 41,250
----------
TEXTILES-4.57%
Burlington Industries, Inc.+ ............... 2,600 34,125
Russell Corp. .............................. 1,400 38,850
----------
72,975
----------
</TABLE>
- ----------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
12
<PAGE> 32
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CAPITAL APPRECIATION FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-CONTINUED
TOBACCO-3.09%
RJR Nabisco Holdings Corp. ............... 1,600 $ 49,400
----------
TRANSPORTATION - SHIPPING-5.36%
Canadian Pacific, Ltd. ................... 2,300 41,687
Pittston Services Group .................. 1,400 43,925
----------
85,612
----------
TOTAL COMMON STOCK
(Cost $1,056,046) ................... 1,078,463
----------
TOTAL INVESTMENTS
(Cost $1,056,046*) .................. 67.56% 1,078,463
Other assets, less liabilities ........... 32.44 517,791
------ ----------
TOTAL NET ASSETS ...................... 100.00% $1,596,254
====== ==========
</TABLE>
- ----------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
13
<PAGE> 33
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB GLOBAL INCOME FUND
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
CURRENCY VALUE (NOTE B)
-------- --------- --------
<S> <C> <C> <C>
GOVERNMENT AND AGENCY OBLIGATIONS-85.65%
BELGIUM-2.62%
Government of Belgium, 7.750%, due 10/15/04 ........ BEF 4,000,000 $ 146,101
Government of Belgium, 6.500%, due 03/31/05 ........ BEF 4,000,000 134,126
----------
280,227
----------
CANADA-3.60%
Government of Canada, 8.000%, due 11/01/98 ......... CAD 200,000 153,982
Government of Canada, 8.000%, due 06/01/23 ......... CAD 300,000 231,082
----------
385,064
----------
DENMARK-1.88%
Government of Denmark, 8.000%, due 05/15/03 ........ DKK 1,050,000 201,425
----------
FINLAND-4.31%
Republic of Finland, 6.000%, due 01/29/02 .......... JPY 40,000,000 461,941
----------
FRANCE-8.14%
France O.A.T., 8.500%, due 10/25/08 ................ FRF 1,700,000 397,650
Government of Portugal, 7.700%, due 06/07/05 ....... FRF 2,200,000 474,332
----------
871,982
----------
GERMANY-13.90%
International Bank for Reconstruction & Development,
6.125%, due 09/27/02 ............................ DEM 1,050,000 751,624
International Bank for Reconstruction & Development,
5.875%, due 11/10/03 ............................ DEM 1,050,000 736,805
----------
1,488,429
----------
ITALY-7.02%
BTPS, 12.000%, due 01/01/02 ........................ ITL 420,000,000 281,933
BTPS, 12.000%, due 05/01/02 ........................ ITL 700,000,000 469,932
----------
751,865
----------
JAPAN-4.14%
European Investment Bank, 4.625%, due 02/26/03 ..... JPY 41,000,000 442,686
----------
NETHERLANDS-7.43%
Government of Netherlands, 8.250%, due 02/15/07 .... NLG 550,000 397,685
Government of Netherlands, 8.250%, due 09/15/07 .... NLG 550,000 398,029
----------
795,714
----------
SPAIN-3.73%
Government of Spain, 11.300%, due 01/15/02 ......... ESP 22,000,000 194,401
Government of Spain, 10.300%, due 06/15/02 ......... ESP 24,000,000 204,539
----------
398,940
----------
</TABLE>
See notes to financial statements.
14
<PAGE> 34
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS
CHUBB GLOBAL INCOME FUND--(CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
CURRENCY VALUE (NOTE B)
-------- --------- --------
<S> <C> <C> <C> <C>
GOVERNMENT AND AGENCY OBLIGATIONS-CONTINUED
UNITED KINGDOM-7.69%
Treasury, 8.000%, due 09/25/09 ............. GBP 310,000 $ 497,161
Treasury, 6.250%, due 11/25/10 ............. GBP 240,000 325,621
-----------
822,782
-----------
UNITED STATES-21.19%
U.S. Treasury Note, 6.250%, due 02/15/03 ... USD 1,000,000 1,044,061
U.S. Treasury Note, 6.500%, due 08/15/05 ... USD 500,000 532,813
U.S. Treasury Note, 10.375%, due 11/15/12 .. USD 500,000 691,718
-----------
2,268,592
-----------
TOTAL GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $8,866,984) ..................... 9,169,647
-----------
CORPORATE BONDS-6.17%
BRAZIL-6.17%
Banco Nacional S.A., 11.000%, due 11/28/97 . USD 200,000 199,500
Ceval Alimentos, S.A., 10.750%, due 07/11/96 USD 250,000 250,312
Metalurgica Gerdau, 10.250%, due 11/23/01 .. USD 220,000 210,100
-----------
659,912
-----------
TOTAL CORPORATE BONDS
(Cost $660,815) ....................... 659,912
-----------
TOTAL INVESTMENTS
(Cost $9,527,799*) .................... 91.82% 9,829,559
Other assets, less liabilities ........... 8.18 876,003
------ -----------
TOTAL NET ASSETS ....................... 100.00% $10,705,562
====== ===========
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------
Currency Value
- --------------
<S> <C>
Belgium franc ................ BEF
Canadian dollar .............. CAD
Danish krone ................. DKK
French franc ................. FRF
Great British pound .......... GBP
German Mark .................. DEM
Italian lira ................. ITL
Japanese yen ................. JPY
Netherlands guilder .......... NLG
Spanish peseta ............... ESP
United States dollar ......... USD
- ----------------------------------
</TABLE>
- ----------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
15
<PAGE> 35
CHUBB INVESTMENT FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
CHUBB
CHUBB GOVERNMENT CHUBB
MONEY MARKET SECURITIES TOTAL RETURN
FUND FUND FUND
------------ ----------- ------------
<S> <C> <C> <C>
ASSETS
Investments at cost - see
accompanying portfolios........................... $ 7,352,792 $12,974,756 $18,582,821
=========== =========== ===========
Investments at market value (Notes B & C)........... $ 7,352,792 $13,497,731 $21,733,279
Cash and currencies................................. 265,877 268,856 119,076
Receivable for Fund shares sold..................... 20,170 44,308 219,485
Dividends receivable................................ 31,800
Receivable for accrued investment income............ 490 98,049 142,670
Deferred organization costs (Note F)................
----------- ----------- -----------
TOTAL ASSETS.................................. 7,639,329 13,908,944 22,246,310
----------- ----------- -----------
LIABILITIES
Dividends payable................................... 894 100 4,773
Payable for portfolio securities purchased..........
Payable for Fund shares redeemed.................... 15,084 11,432 48,520
Payable to affiliate (Note D)....................... 3,145 10,934 21,691
Net payable for foreign forward contracts...........
Organization costs payable (Note F).................
----------- ----------- -----------
TOTAL LIABILITIES............................. 19,123 22,466 74,984
NET ASSETS............................................ $ 7,620,206 $13,886,478 $22,171,326
=========== =========== ===========
NET ASSETS CONSIST OF:
Par value........................................... $ 76,210 $ 12,877 $ 13,889
Capital paid in excess of par....................... 7,544,757 13,853,194 19,222,763
Accumulated net realized gain (loss)
from investments.................................. (761) (502,568) (80)
Accumulated net realized loss from foreign
currency transactions..............................
Net unrealized gain on investments.................. 522,975 3,150,458
Net unrealized gain on translation of assets
and liabilities in foreign currencies..............
Capital gain distributions required for
Federal tax purposes over amounts
recognized for financial reporting (Note C)........ (215,704)
----------- ----------- -----------
NET ASSETS.................................... $ 7,620,206 $13,886,478 $22,171,326
=========== =========== ===========
Shares of common stock outstanding (.01 par value,
100,000,000 shares auth. each Fund)................. 7,620,969 1,287,696 1,388,932
=========== =========== ===========
NET ASSET VALUE PER SHARE............................. $1.00 $10.78 $15.96
=========== =========== ===========
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value divided by .97 on
Government Securities Fund, Tax-Exempt Fund,
and Global Income Fund, and by .95 on Total
Return Fund, Growth and Income Fund,
and Capital Appreciation Fund. Money Market Fund
is offered at Net Asset Value per share)............ $1.00 $11.11 $16.80
=========== =========== ===========
</TABLE>
See notes to financial statements.
16
<PAGE> 36
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND FUND
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost - see
accompanying portfolios...........................$13,751,674 $23,725,919 $ 1,056,046 $ 9,527,799
=========== =========== =========== ===========
Investments at market value (Notes B & C)...........$14,749,807 $28,904,876 $ 1,078,463 $ 9,829,559
Cash and currencies................................. 255,844 166,705 503,101 1,604,379
Receivable for Fund shares sold..................... 5,641 48,210 31,355 12,536
Dividends receivable................................ 62,716 1,636
Receivable for accrued investment income............ 260,718 494 1,375 256,494
Deferred organization costs (Note F)................ 12,505 12,505
----------- ----------- ----------- -----------
TOTAL ASSETS.................................. 15,272,010 29,183,001 1,628,435 11,715,473
------------ ----------- ----------- -----------
LIABILITIES
Dividends payable................................... 110
Payable for portfolio securities purchased.......... 18,200 951,826
Payable for Fund shares redeemed.................... 595 10,086
Payable to affiliate (Note D)....................... 12,066 28,644 1,476 14,710
Net payable for foreign forward contracts........... 30,870
Organization costs payable (Note F)................. 12,505 12,505
----------- ----------- ----------- -----------
TOTAL LIABILITIES............................. 12,661 38,840 32,181 1,009,911
NET ASSETS............................................$15,259,349 $29,144,161 $ 1,596,254 $10,705,562
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Par value........................................... $ 12,377 $ 15,689 $ 1,535 $ 10,486
Capital paid in excess of par....................... 14,263,117 24,455,632 1,572,302 10,428,080
Accumulated net realized gain (loss)
from investments.................................. (221) 8,250
Accumulated net realized loss from foreign
currency transactions.............................. (19,073)
Net unrealized gain on investments.................. 998,133 5,178,957 22,417 301,760
Net unrealized gain on translation of assets
and liabilities in foreign currencies.............. (23,941)
Capital gain distributions required for
Federal tax purposes over amounts
recognized for financial reporting (Note C)........ (14,278) (505,896)
----------- ----------- ----------- -----------
NET ASSETS....................................$15,259,349 $29,144,161 $ 1,596,254 $10,705,562
=========== =========== =========== ===========
Shares of common stock outstanding (.01 par value,
100,000,000 shares auth. each Fund)................. 1,237,682 1,568,900 153,462 1,048,603
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE............................. $12.33 $18.58 $10.40 $10.21
=========== =========== =========== ===========
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value divided by .97 on
Government Securities Fund, Tax-Exempt Fund,
and Global Income Fund, and by .95 on Total
Return Fund, Growth and Income Fund,
and Capital Appreciation Fund. Money Market Fund
is offered at Net Asset Value per share)............ $12.71 $19.56 $10.95 $10.53
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
17
<PAGE> 37
CHUBB INVESTMENT FUNDS, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CHUBB
CHUBB GOVERNMENT CHUBB
MONEY MARKET SECURITIES TOTAL RETURN
FUND FUND FUND
------------ ---------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest.......................................... $ 424,411 $ 974,774 $ 378,020
Dividends......................................... 317,727
Foreign taxes withheld............................ (495)
Miscellaneous Income.............................. 593
---------- ---------- ----------
Total investment
income........................................ 424,411 974,774 695,845
---------- ---------- ----------
Expenses:
Administrative fees (Note D) 26,770 61,304 88,721
Advisory fees (Note D)............................ 11,472 27,301 39,510
Distribution fees (Note D)........................ 19,088 68,121 98,587
State registration fees........................... 8,679 15,366 22,101
Shareholder reports............................... 4,036 7,206 10,465
Professional fees................................. 5,560 9,905 14,387
Director's fees.................................... 891 1,582 2,290
Shareholder servicing costs....................... 19,554 34,391 49,174
Custodian fees.................................... 1,850 1,789 3,662
Security valuation................................ 496 1,511 2,771
Organization expense (Note F).....................
Miscellaneous expenses............................ 1,628 2,887 4,158
---------- ---------- ----------
Total expenses.................................. 100,024 231,363 335,826
Fees waived by Chubb
Asset Managers, Inc., Chubb
Investment Advisory Corp.,
Chubb Securities Corp., and
expenses assumed by Chubb Life
(Note D)......................................... (61,878) (95,545) (121,915)
---------- ---------- ----------
Net expenses..................................... 38,146 135,818 213,911
---------- ---------- ----------
Net investment income............................ 386,265 838,956 481,934
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments.................... 21 129,275 908,600
Net realized loss from foreign
currency transactions.............................
Net unrealized gain on investments.................. 1,222,240 3,699,707
Net unrealized loss on translation
of assets and liabilities in foreign
currencies........................................
---------- ---------- ----------
Net gain on investments and
foreign currency.................................. 21 1,351,515 4,608,307
---------- ---------- ----------
Net increase in net
assets resulting from operations.................. $ 386,286 $2,190,471 $5,090,241
========== ========== ==========
</TABLE>
(A) For period from September 1, 1995 (commencement of operations) to December
31, 1995.
See notes to financial statements.
18
<PAGE> 38
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND (A) FUND (A)
---------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest.......................................... $ 917,028 $ 28,460 $ 6,232 $ 172,845
Dividends......................................... 539,127 4,581
Foreign taxes withheld............................ (2,370) (6,285)
Miscellaneous Income.............................. 3,261
---------- ---------- --------- ----------
Total investment
income........................................ 917,028 568,478 10,813 166,560
---------- ---------- --------- ----------
Expenses:
Administrative fees (Note D) 66,672 112,013 1,878 12,074
Advisory fees (Note D)............................ 29,691 49,883 836 5,377
Distribution fees (Note D)........................ 74,086 124,469 2,062 13,390
State registration fees........................... 16,781 27,717 24,804 29,929
Shareholder reports............................... 7,819 13,263 235 1,460
Professional fees................................. 10,772 18,216 337 2,241
Director's fees................................... 1,723 2,888 50 327
Shareholder servicing costs....................... 37,621 61,284 838 5,373
Custodian fees.................................... 3,976 3,052 862 150
Security valuation................................ 12,554 1,657 318 1,490
Organization expense (Note F)..................... 880 880
Miscellaneous expenses............................ 3,147 5,220 76 488
---------- ---------- --------- ----------
Total expenses.................................. 264,842 419,662 33,176 73,179
Fees waived by Chubb
Asset Managers, Inc., Chubb
Investment Advisory Corp.,
Chubb Securities Corp., and
expenses assumed by Chubb Life
(Note D)......................................... (117,614) (148,796) (28,072) (26,499)
---------- ---------- --------- ----------
Net expenses..................................... 147,228 270,866 5,104 46,680
---------- ---------- --------- ----------
Net investment income............................ 769,800 297,612 5,709 119,880
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments.................... 9,393 1,290,658 3,429 12,320
Net realized loss from foreign
currency transactions............................. (23,114)
Net unrealized gain on investments.................. 1,383,807 5,697,972 22,417 301,760
Net unrealized loss on translation
of assets and liabilities in foreign
currencies........................................ (23,941)
---------- ---------- --------- ----------
Net gain on investments and
foreign currency.................................. 1,393,200 6,988,630 25,846 267,025
---------- ---------- --------- ----------
Net increase in net
assets resulting from operations.................. $2,163,000 $7,286,242 $ 31,555 $ 386,905
========== ========== ========= ==========
</TABLE>
See notes to financial statements.
19
<PAGE> 39
CHUBB INVESTMENT FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CHUBB
CHUBB GOVERNMENT CHUBB
MONEY MARKET SECURITIES TOTAL RETURN
FUND FUND FUND
------------------------- ------------------------- ------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1995 31. 1994 31, 1995 31. 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income......................... $ 386,265 $ 214,978 $ 838,956 $ 817,729 $ 481,934 $ 447,304
Net realized gain (loss) on
investments.................................. 21 (651) 129,275 (623,960) 908,600 638,671
Net realized loss from
foreign currency transactions................
Net unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies........ 1,222,240 (691,375) 3,699,707 (1,834,164)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................................... 386,286 214,327 2,190,471 (497,606) 5,090,241 (748,189)
Dividends to shareholders from
net investment income........................ (386,265) (214,978) (838,956) (817,729) (481,934) (447,353)
Dividends to shareholders in
excess of net
investment income............................
Distributions to shareholders
from capital gains........................... (74) (908,076) (944,167)
Distributions to shareholders
in excess of capital gains................... (215,784) (524)
Returns of capital............................
Increase (decrease) in net assets
derived from shareholder
transactions (Note E)........................ 125,442 2,270,216 323 (829,206) 2,255,684 4,211,342
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets.................................. 125,463 2,269,565 1,351,838 (2,144,615) 5,740,131 2,071,109
Net Assets:
Beginning of period.......................... 7,494,743 5,225,178 12,534,640 14,679,255 16,431,195 14,360,086
----------- ----------- ----------- ----------- ----------- -----------
End of period................................ $ 7,620,206 $ 7,494,743 $13,886,478 $12,534,640 $22,171,326 $16,431,195
=========== =========== =========== =========== =========== ===========
Accumulated net
investment loss.............................. $0 $0 $0 $0 $0 $0
=========== =========== =========== =========== =========== ===========
</TABLE>
(A) Commencement of operations on September 1, 1995.
See notes to financial statements.
20
<PAGE> 40
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND FUND
- -------------------------- -------------------------- ------------ -----------
PERIOD FROM PERIOD FROM
YEAR YEAR YEAR YEAR SEPT. 1, SEPT. 1,
ENDED ENDED ENDED ENDED 1995 TO 1995 TO
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31. 1995 31, 1994 31, 1995(A) 31, 1995(A)
- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ 769,800 $ 815,871 $ 297,612 $ 312,724 $ 5,709 $ 119,880
9,393 1,425 1,290,658 813,524 3,429 12,320
(23,114)
1,383,807 (1,832,129) 5,697,972 (2,012,505) 22,417 277,819
- ----------- ----------- ----------- ----------- ----------- -----------
2,163,000 `(1,014,833) 7,286,242 (886,257) 31,555 386,905
(769,800) (815,915) (297,589) (312,763) (5,709) (119,880)
(29)
(12,148) (1,290,658) (1,176,155) (3,429)
(14,278) (504,237)
(1,903)
(81,364) (601,685) 5,273,078 6,169,066 1,573,837 10,438,566
- ----------- ----------- ----------- ----------- ----------- -----------
1,285,410 (2,432,433) 10,464,933 3,793,891 1,596,254 10,705,562
13,973,939 16,406,372 18,679,228 14,885,337 0 0
- ----------- ----------- ----------- ----------- ----------- -----------
$15,259,349 $13,973,939 $29,144,161 $18,679,228 $ 1,596,254 $10,705,562
=========== =========== =========== =========== =========== ===========
$0 $0 $0 $0 $0 $ (19,073)
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
21
<PAGE> 41
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE A--ORGANIZATION
Chubb Investment Funds, Inc. (the "Company") was incorporated under the laws of
the State of Maryland on April 27, 1987 and is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end series management
investment company. The Company consists of seven Funds (the "Funds"): Chubb
Money Market Fund, Chubb Government Securities Fund, Chubb Total Return Fund,
Chubb Tax-Exempt Fund, Chubb Growth and Income Fund, Chubb Capital Appreciation
Fund, and Chubb Global Income Fund. The Company was established through the sale
and issuance on December 1, 1987, of shares to Chubb Life Insurance Company of
America ("Chubb Life"), which is a wholly-owned subsidiary of The Chubb
Corporation ("Chubb"). At December 31, 1995, Chubb, and its wholly-owned
subsidiaries, owned:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 % OF
SHARES OWNED SHARES
----------------- ------
<S> <C> <C>
Chubb Money Market Fund............... 1,624,465 21.32%
Chubb Government Securities Fund...... 215,180 16.71%
Chubb Total Return Fund............... 17,091 1.23%
Chubb Tax-Exempt Fund................. 179,143 14.47%
Chubb Growth and Income Fund.......... 16,239 1.04%
Chubb Capital Appreciation Fund....... 107,610 70.12%
Chubb Global Income Fund.............. 1,026,609 97.90%
</TABLE>
(A) Shares issued September 1, 1995
NOTE B--SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments: Equity securities are valued at the closing sales
price on the exchange on which such securities are principally traded; or, if
traded in the over-the-counter market or on a national exchange for which no
sales took place on the day of valuation, at the mean of the bid and asked
prices at the close of trading. Quotations of foreign securities in foreign
currencies are converted to the U.S. dollar equivalents using appropriately
translated foreign market closing prices. Securities listed on a foreign
exchange are valued at the last quoted sale price available before the time when
net assets are valued. Securities or other assets for which market quotations
are not readily available are valued at fair value in accordance with procedures
established by the Board of Directors. Debt instruments are valued on the basis
of valuations provided by a pricing service that determines valuations for
institutional size trading units of securities, without exclusive reliance upon
quoted prices. These valuations are believed to more accurately reflect fair
market value. Short-term debt instruments with a remaining maturity of less than
60 days are valued by the amortized cost method, which approximates market
value.
Trading in securities on most foreign exchanges and over-the-counter markets is
normally completed before the close of the domestic market and may also take
place on days on which the domestic market is closed. If events materially
affecting the value of foreign securities occur between the time when the
exchange on which they are traded closes and the time when the Fund's net asset
value is calculated, such securities will be valued at fair value in accordance
with procedures established by and under general supervision of the Board of
Directors.
The books and records of the Funds are maintained in U.S. dollars. The market
values of investments, other assets and liabilities and forward contracts stated
in foreign currencies are translated at the prevailing exchange rates at the end
of the period. Purchases, sales, income and expenses are translated at the
exchange rate prevailing on the respective dates of such transactions.
22
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE B--SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
Since the net assets of the Funds are presented at the exchange rates and market
value prevailing at the end of the period, the Funds do not isolate the portion
of the results of operations arising as a result of changes in foreign exchange
rates on securities from the fluctuations arising from changes in the market
prices of securities held during the period. Such fluctuations are included with
the net realized and unrealized gain or loss from investments.
Reported net realized gain or loss from foreign currency transactions arise from
sales and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
gain or loss from foreign currency transactions arises from changes in the value
of assets and liabilities other than investments in securities at fiscal year
end, resulting from changes in the exchange rate.
The Funds may enter into forward foreign currency contracts to protect
securities and related receivables and payables against fluctuations in future
foreign currency rates. A forward contract is an agreement to buy or sell
currencies of different countries on a specified future date at a specified
rate. Risk may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and is
generally limited to the amount of unrealized gain on the contracts, if any, at
the date of default. Risk may also arise from unanticipated movements in the
value of a foreign currency relative to the U.S. dollar. Contracts are marked-to
market daily and the change in market value is recorded as unrealized
appreciation or depreciation. Realized gains or losses arising from such
transactions are included in net realized gains or losses from foreign currency
transactions. At December 31, 1995, the Global Income Fund had the following
open forward foreign currency contracts:
<TABLE>
<CAPTION>
U.S. Dollar
Foreign Currency Contracts to Value at Net Unrealized
Purchase Contracts Settlement Date Receive Cost 12/31/95 Appreciation
- ------------------ --------------- ------------ -------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Japanese Yen 06/20/96 88,027,190 $866,606 $873,868 $ 7,262
-------- -------- ---------
</TABLE>
<TABLE>
<CAPTION>
U.S. Dollar
Foreign Currency Contracts to Value at Net Unrealized
Sale Contracts Settlement Date Deliver Cost 12/31/95 Depreciation
- ------------------ --------------- ------------ -------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Belgium franc 06/20/96 7,151,780 $ 244,005 $ 244,352 $ 347
French franc 06/20/96 1,825,450 364,798 373,306 8,508
German mark 06/20/96 227,052 155,239 159,784 4,545
Italian lira 06/20/96 487,474,098 294,409 301,415 7,006
Netherlands guilder 06/20/96 1,118,803 701,708 704,453 2,745
Spanish peseta 06/20/96 18,062,924 140,930 146,280 5,350
Great British pound 06/20/96 321,842 486,135 495,766 9,631
---------- ---------- ---------
$2,387,224 $2,425,356 $ 38,132
========== ========== =========
</TABLE>
See notes to financial statements.
23
<PAGE> 43
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE B--SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
Security Transactions and Investment Income: Security transactions are recorded
on a trade date basis. Realized gains and losses on investments sold are
recorded on the basis of the first-in, first-out method. Interest income,
including where applicable, amortization of discount on investments, is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date,
except for certain dividends from foreign securities, which are recorded as soon
as the Funds are informed of the dividend.
Dividends to Shareholders: Dividends to shareholders from net investment income
are declared daily and distributed monthly for the Chubb Money Market Fund and
the Chubb Government Securities Fund; declared and distributed monthly for the
Chubb Tax-Exempt Fund and the Chubb Global Income Fund; declared and distributed
quarterly for the Chubb Total Return Fund; and declared and distributed annually
for the Chubb Growth and Income Fund and Chubb Capital Appreciation Fund.
Dividends from net realized capital gains are declared and distributed at least
once annually. Dividends distributed to shareholders are recorded on the
ex-dividend date.
The Company distinguishes between dividends on a tax basis and a financial
reporting basis and only dividends in excess of tax basis earnings and profits
are reported in the financial statements as a return of capital. Differences in
the recognition or classification of income between the financial statements and
tax earnings and profits which result in temporary over-distributions for
financial statement purposes are classified as distributions in excess of net
investment income or accumulated realized gains.
Federal Income Taxes: It is the policy of the Company for each Fund to qualify
as a regulated investment company by complying with the requirements of the
Internal Revenue Code applicable to regulated investment companies, by
distributing substantially all of its taxable earnings to its shareholders.
Therefore, no Federal tax provision is required.
NOTE C--INVESTMENTS
The cost of investment securities held on December 31, 1995 for Federal income
tax purposes is the same as for financial reporting purposes. As of December 31,
1995, gross unrealized gains and losses were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAIN
---------- ---------- -----------
<S> <C> <C> <C>
Chubb Government Securities Fund.................. $ 525,547 $ 2,572 $ 522,975
Chubb Total Return Fund........................... 3,484,228 333,770 3,150,458
Chubb Tax-Exempt Fund............................. 1,003,879 5,746 998,133
Chubb Growth and Income Fund...................... 5,864,786 685,829 5,178,957
Chubb Capital Appreciation Fund................... 68,221 45,804 22,417
Chubb Global Income Fund.......................... 326,654 24,894 301,760
</TABLE>
24
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE C--INVESTMENTS--(CONTINUED)
Purchases and sales of investment securities for the period ended December 31,
1995, other than short-term obligations, were as follows:
<TABLE>
<CAPTION>
PROCEEDS
COST OF FROM
INVESTMENT INVESTMENT
SECURITIES SECURITIES
PURCHASED SOLD
----------- -----------
<S> <C> <C>
Chubb Government Securities Fund......................... $34,990,142 $35,126,871
Chubb Total Return Fund.................................. 11,606,679 11,121,700
Chubb Tax-Exempt Fund.................................... 1,056,201 1,378,137
Chubb Growth and Income Fund............................. 11,543,210 9,107,307
Chubb Capital Appreciation Fund.......................... 1,077,046 24,429
Chubb Global Income Fund................................. 10,822,097 1,274,891
</TABLE>
At December 31, 1995, the Chubb Money Market Fund had $761 of accumulated
realized losses, for Federal income tax purposes, of which $78 expires in 2000,
$32 expires in 2001, and $651 expires in 2002. At December 31, 1995, the Chubb
Government Securities Fund had $502,568 of accumulated realized losses expiring
in 2002. These losses are available to be used to offset future realized capital
gains.
During the period from November 1, 1995 through December 31, 1995, the Chubb
Total Return Fund, Chubb Tax-Exempt Fund, and the Chubb Growth and Income Fund
incurred capital losses of $215,704, $14,278 and $505,896, respectively. In
addition, the Chubb Global Income Fund incurred a foreign currency loss of
$19,073. These losses are treated for Federal income tax purposes as if they had
occurred on January 1, 1996. As a result, the Chubb Total Return Fund, Chubb
Tax-Exempt Fund, Chubb Growth and Income Fund, and the Chubb Global Income Fund
made capital gain distributions, as required by Internal Revenue Code
Regulations, in excess of net capital gains recognized for financial reporting
purposes.
NOTE D--MANAGEMENT AGREEMENTS AND EXPENSES
Each of the Funds has entered into an investment management agreement with Chubb
Asset Managers, Inc. ("Investment Manager"), a wholly-owned subsidiary of Chubb,
and Chubb Investment Advisory Corporation ("Investment Administrator"), a
wholly-owned subsidiary of Chubb Life.
Under the terms of the agreements, the Investment Manager is responsible for the
overall investment management of each Fund's portfolio, consistent with each
Fund's investment objectives, policies and restrictions. The Investment
Administrator provides certain administrative services and facilities which are
necessary for the Company to conduct its business.
The Company has entered into a distribution agreement under the Investment
Company Act of 1940 with Chubb Securities Corporation ("Distributor"). Under the
terms of the agreement, the Distributor will distribute the Company's shares
among investors and broker-dealers with which it has contracted to sell the
Company's shares. During the period ended December 31, 1995, the Distributor
received $450,641 in sales loads of which $348,575 was reallowed to
broker-dealers. Also, the Company has adopted a plan of distribution pursuant to
Rule 12b-1 that provides that the Company may, directly or indirectly, engage in
activities primarily intended to result in the sale of the Company's shares. The
maximum expenditure the Company may make under the plan will be .25% per annum
of the average daily net assets of
25
<PAGE> 45
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE D--MANAGEMENT AGREEMENTS AND EXPENSES--(CONTINUED)
the Chubb Money Market Fund and .50% per annum of the average daily net assets
of the Chubb Government Securities Fund, Chubb Total Return Fund, Chubb
Tax-Exempt Fund, Chubb Growth and Income Fund, Chubb Capital Appreciation Fund
and Chubb Global Income Fund. During the period ended December 31, 1995,
payments were made by the Company to the Distributor under the plan of
distribution in the amount of $186,402.
Investment management fees, which compensate both the Investment Manager and
Investment Administrator are computed at the following annual percentages of
average daily net asset value:
<TABLE>
<CAPTION>
CHUBB GOVERNMENT SECURITIES FUND
CHUBB TOTAL RETURN FUND
CHUBB TAX-EXEMPT FUND
CHUBB GROWTH AND INCOME FUND
CHUBB MONEY CHUBB CAPITAL APPRECIATION FUND
MARKET FUND CHUBB GLOBAL INCOME FUND
------------------------------- --------------------------------------
AVERAGE DAILY INVESTMENT INVESTMENT INVESTMENT INVESTMENT
NET ASSETS MANAGER ADMINISTRATOR MANAGER ADMINISTRATOR
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
First $200 Million ....... 0.15% 0.35% 0.20% 0.45%
Next $1.1 Billion ........ 0.14% 0.31% 0.19% 0.41%
Over $1.3 Billion ........ 0.13% 0.27% 0.18% 0.37%
</TABLE>
The Company is responsible for certain expenses relating to the Company's
operations in addition to the fees described above, including: taxes, transfer
agent, legal, accounting, custodian, audit, printing, registration, directors,
security valuation and miscellaneous other expenses. For the period ended
December 31, 1995, the rate was .50% of the average daily net assets of the
Chubb Money Market Fund, 1.00% of the average daily net assets of the Chubb
Government Securities Fund and Chubb Tax-Exempt Fund, 1.25% of the average daily
net assets of the Chubb Total Return Fund, Chubb Growth and Income Fund, and
Capital Appreciation Fund, and 1.75% of the average daily net assets of the
Chubb Global Income Fund. For the period ended December 31, 1995, the Investment
Manager, Investment Administrator and Distributor waived all or a portion of
their fees. In addition, Chubb Life assumed a portion of all other expenses.
NOTE E--SHAREHOLDERS' TRANSACTIONS
Following is a summary of transactions with shareholders for each Fund.
<TABLE>
<CAPTION>
CHUBB MONEY MARKET FUND
---------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
-------------------------------- ----------------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold .................. 7,359,452 $ 7,359,452 8,649,844 $8,649,844
Shares issued as reinvestment
of dividends .............. 356,904 356,904 209,547 209,547
Shares redeemed .............. (7,590,914) (7,590,914) (6,589,175) (6,589,175)
---------- ----------- ---------- ----------
Net increase ........... 125,442 $ 125,442 2,270,216 $2,270,216
========== =========== ========== ==========
</TABLE>
26
<PAGE> 46
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE E--SHAREHOLDERS' TRANSACTIONS--(CONTINUED)
<TABLE>
<CAPTION>
CHUBB GOVERNMENT SECURITIES FUND
-----------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
-------------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold .......................... 260,999 $ 2,694,700 333,515 $ 3,440,659
Shares issued as reinvestment of
dividends .......................... 64,593 670,221 66,145 669,371
Shares redeemed ...................... (323,982) (3,364,598) (484,198) (4,939,236)
-------- ----------- -------- -----------
Net increase (decrease) .......... 1,610 $ 323 (84,538) $ (829,206)
======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB TOTAL RETURN FUND
-----------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
-------------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold .......................... 251,919 $ 3,841,601 412,277 $6,013,357
Shares issued as reinvestment of
dividends .......................... 154,693 2,317,850 75,416 1,100,365
Shares redeemed ...................... (259,566) (3,903,767) (202,493) (2,902,380)
-------- ----------- -------- ----------
Net increase ..................... 147,046 $ 2,255,684 285,200 $4,211,342
======== =========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CHUBB TAX-EXEMPT FUND
-----------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
-------------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold .......................... 271,827 $ 3,241,348 367,109 $ 4,400,156
Shares issued as reinvestment of
dividends .......................... 64,458 771,519 60,697 715,788
Shares redeemed ...................... (343,636) (4,094,231) (486,580) (5,717,629)
-------- ----------- -------- -----------
Net decrease ..................... (7,351) $(81,364) (58,774) $ (601,685)
======== =========== ======== ===========
</TABLE>
27
<PAGE> 47
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
DECEMBER 31, 1995
NOTE E--SHAREHOLDERS' TRANSACTIONS--(CONTINUED)
<TABLE>
<CAPTION>
CHUBB GROWTH AND INCOME FUND
-----------------------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
-------------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold ........................... 360,343 $ 6,302,104 515,132 $ 8,425,191
Shares issued as reinvestment of
dividends ........................... 183,869 3,157,445 61,521 1,013,868
Shares redeemed ....................... (239,731) (4,186,471) (203,394) (3,269,993)
-------- ----------- -------- -----------
Net increase ...................... 304,481 $ 5,273,078 373,259 $ 6,169,066
======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB CAPITAL APPRECIATION FUND
-----------------------------------------
PERIOD FROM SEPTEMBER 1, 1995
THROUGH DECEMBER 31, 1995
-----------------------------
SHARES DOLLARS
------ -------
<S> <C> <C>
Shares sold ............................ 152,567 $1,564,589
Shares issued as reinvestment of
dividend ............................. 913 9,484
Shares redeemed ........................ (18) (236)
------- ----------
Net increase ....................... 153,462 $1,573,837
======= ==========
</TABLE>
<TABLE>
<CAPTION>
CHUBB GLOBAL INCOME FUND
-----------------------------------------
PERIOD FROM SEPTEMBER 1, 1995
THROUGH DECEMBER 31, 1995
-----------------------------
SHARES DOLLARS
------ -------
<S> <C> <C>
Shares sold ........................... 1,037,138 $10,321,849
Shares issued as reinvestment of
dividends ........................... 11,482 116,885
Shares redeemed ....................... (17) (168)
--------- -----------
Net increase ...................... 1,048,603 $10,438,566
========= ===========
</TABLE>
NOTE F--ORGANIZATION COSTS
Costs incurred in connection with the initial organization of the Chubb Capital
Appreciation Fund and the Chubb Global Income Fund are being amortized on the
straight-line basis over a period of five years. At December 31, 1995, the
balances reported as deferred organization costs are payable to Chubb America
Service Corp., an affiliated entity, and have been included as a liability in
the statement of assets and liabilities.
28
<PAGE> 48
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the year(A):
<TABLE>
<CAPTION>
CHUBB MONEY MARKET FUND
----------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ................. 0.050 0.034 0.025 0.030 0.052
Net gains and
losses on securities (both
realized and unrealized) ............ ---------- ---------- ---------- ---------- ----------
Total from investment
operations .......................... 0.050 0.034 0.025 0.030 0.052
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ................... (0.050) (0.034) (0.025) (0.030) (0.052)
Dividends in excess of
net investment income ...............
Distributions from capital
gains ...............................
Distributions in excess of
capital gains .......................
Returns of capital ....................
---------- ---------- ---------- ---------- ----------
Total distributions ................... (0.050) (0.034) (0.025) (0.030) (0.052)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
Total Return (B) ........................ 5.16% 3.41% 2.50% 3.00% 5.20%
Ratios to Average Net Assets:
(Annualized)
Expenses (C) ......................... 0.50% 0.50% 0.50% 0.50% 0.50%
Net investment income ................ 5.05% 3.43% 2.48% 3.06% 5.25%
Portfolio Turnover Rate ................. N/A N/A N/A N/A N/A
Net Assets, At End of Period ............ $7,620,206 $7,494,743 $5,225,178 $4,212,869 $4,410,966
</TABLE>
(A) The per share amounts which are shown have been computed based on the
average number of shares outstanding during each year.
(B) Total return assumes reinvestment of all dividends during the year.
Investment returns and principal values may fluctuate and shares, when
redeemed, may be worth more or less than the original cost.
(C) All related party fees have been waived for the year and all other expenses
of the Fund have been assumed in part for 1995, 1994, 1993, 1992, and 1991 by
Chubb Life. Had the fees not been waived and expenses not been assumed, the
ratios of expenses to average net assets would have been 1.31% in 1995, 1.31%
in 1994, 1.50% in 1993, 2.38% in 1992, and 2.50% in 1991, pursuant to the
most restrictive state limitation.
See notes to financial statements.
29
<PAGE> 49
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
CHUBB GOVERNMENT SECURITIES FUND
----------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................ $ 9.750 $ 10.710 $ 10.700 $ 11.160 $ 10.360
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ................. 0.636 0.607 0.770 0.766 0.750
Net gains and
losses on securities (both
realized and unrealized) ............ 1.030 (0.960) 0.199 0.021 0.838
----------- ----------- ----------- ---------- ----------
Total from investment
operations .......................... 1.666 (0.353) 0.969 0.787 1.588
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ................... (0.636) (0.607) (0.770) (0.766) (0.750)
Dividends in excess of
net investment income
Distributions from capital
gains ............................... (0.170) (0.481) (0.038)
Distributions in excess of
capital gains ....................... (0.019)
Returns of capital ....................
----------- ----------- ----------- ---------- ----------
Total distributions ................... (0.636) (0.607) (0.959) (1.247) (0.788)
----------- ----------- ----------- ---------- ----------
Net asset value, end of period ........ $ 10.780 $ 9.750 $ 10.710 $ 10.700 $ 11.160
----------- ----------- ----------- ---------- ----------
Total Return (A) ...................... 17.50% (3.34%) 9.29% 7.44% 15.97%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ........................ 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ............... 6.16% 5.96% 7.04% 6.94% 7.12%
Portfolio Turnover Rate ............... 276.56% 113.36% 197.08% 310.29% 26.96%
Net Assets, At End of Period .......... $13,886,478 $12,534,640 $14,679,255 $7,392,150 $4,080,963
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
(B) A portion of all related party fees of the Fund have been waived for 1995,
1994 and 1993. All related party fees have been waived and all other expenses
of the Fund have been assumed in part for 1992 and 1991 by Chubb Life. Had
the fees not been waived and expenses not been assumed, the ratios of
expenses to average net assets would have been 1.70% in 1995, 1.71% in 1994,
1.89% in 1993 and 2.50% in 1992 and 1991, pursuant to the most restrictive
state limitation.
See notes to financial statements.
30
<PAGE> 50
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
CHUBB TOTAL RETURN FUND
-----------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................ $ 13.230 $ 15.010 $ 13.890 $ 13.850 $ 11.270
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ................. 0.373 0.373 0.405 0.382 0.387
Net gains and
losses on securities (both
realized and unrealized) ............ 3.586 (0.994) 1.529 0.577 2.870
----------- ----------- ----------- ----------- ----------
Total from investment
operations .......................... 3.959 (0.621) 1.934 0.959 3.257
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income .................... (0.373) (0.373) (0.405) (0.382) (0.387)
Dividends in excess
of net investment income
Distributions from capital
gains ............................... (0.692) (0.786) (0.409) (0.537) (0.290)
Distributions in excess of
capital gains ....................... (0.164)
Returns of capital ....................
----------- ----------- ----------- ----------- ----------
Total distributions ................... (1.229) (1.159) (0.814) (0.919) (0.677)
----------- ----------- ----------- ----------- ----------
Net asset value, end of period ........ $ 15.960 $ 13.230 $ 15.010 $ 13.890 $ 13.850
----------- ----------- ----------- ----------- ----------
Total Return (A) ...................... 30.13% (4.21%) 14.03% 7.11% 29.23%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ........................ 1.08% 1.00% 1.00% 1.00% 1.00%
Net investment income ............... 2.45% 2.66% 2.83% 2.97% 3.26%
Portfolio Turnover Rate ............... 57.62% 37.53% 66.15% 73.89% 106.90%
Net Assets, At End of Period .......... $22,171,326 $16,431,195 $14,360,086 $10,000,441 $5,259,055
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
(B) A portion of all related party fees of the Fund have been waived for 1995,
1994 and 1993. All related party fees have been waived and all other
expenses of the Fund have been assumed in part for 1992 and 1991 by Chubb
Life. Had the fees not been waived and expenses not been assumed, the ratios
of expenses to average net assets would have been 1.70% in 1995, 1.73% in
1994, 1.93% in 1993, 2.41% in 1992, and 2.50% in 1991, pursuant to the most
restrictive state limitation.
See notes to financial statements.
31
<PAGE> 51
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
CHUBB TAX-EXEMPT FUND
-----------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................ $ 11.220 $ 12.580 $ 11.740 $ 11.380 $ 10.880
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ................. 0.621 0.618 0.583 0.619 0.634
Net gains and
losses on securities (both
realized and unrealized) ............. 1.132 (1.360) 0.850 0.401 0.500
----------- ----------- ----------- ---------- ----------
Total from investment
operations .......................... 1.753 (0.742) 1.433 1.020 1.134
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ................. (0.621) (0.618) (0.583) (0.619) (0.634)
Dividends in excess of
net investment income
Distributions from capital
gains ............................. (0.010) (0.004) (0.041)
Distributions in excess of
capital gains ..................... (0.012) (0.006)
----------- ----------- ----------- ---------- ----------
Returns of capital
Total distributions ................. (0.643) (0.618) (0.593) (0.660) (0.634)
----------- ----------- ----------- ---------- ----------
Net asset value, end of period ........ $ 12.330 $ 11.220 $ 12.580 $ 11.740 $ 11.380
----------- ----------- ----------- ---------- ----------
Total Return (A) 15.88% (5.97%) 12.42% 9.19% 10.71%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ........................ 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ............... 5.20% 5.21% 4.81% 5.40% 5.80%
Portfolio Turnover Rate ............... 7.39% 8.37% 1.55% 17.11% 4.41%
Net Assets, At End of Period .......... $15,259,349 $13,973,939 $16,406,372 $9,250,893 $6,734,020
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
(B) A portion of all related party fees of the Fund have been waived for 1995,
1994 and 1993. All related party fees have been waived and all other expenses
of the Fund have been assumed in part for 1992 and 1991 by Chubb Life. Had
the fees not been waived and expenses not been assumed, the ratios of
expenses to average net assets would have been 1.79% in 1995, 1.80% in 1994,
1.97% in 1993, 2.42% in 1992, and 2.50% in 1991, pursuant to the most
restrictive state limitation.
See notes to financial statements.
32
<PAGE> 52
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the year:
<TABLE>
<CAPTION>
CHUBB GROWTH AND INCOME FUND
------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................ $ 14.770 $ 16.700 $ 15.140 $ 14.830 $ 11.950
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ................. 0.204 0.247 0.277 0.214 0.243
Net gains and
losses on securities (both
realized and unrealized) ............. 5.042 (0.954) 2.039 0.794 3.756
----------- ----------- ----------- ---------- ----------
Total from investment
operations ........................... 5.246 (0.707) 2.316 1.008 3.999
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income .................... (0.204) (0.247) (0.277) (0.214) (0.243)
Dividends in excess of
net investment income ................
Distributions from capital
gains ................................ (0.885) (0.976) (0.479) (0.484) (0.876)
Distributions in excess of
capital gains ........................ (0.346)
Returns of capital .................... (0.001)
----------- ----------- ----------- ---------- ----------
Total distributions ................... (1.436) (1.223) (0.756) (0.698) (1.119)
----------- ----------- ----------- ---------- ----------
Net asset value, end of period ........ $ 18.580 $ 14.770 $ 16.700 $ 15.140 $ 14.830
----------- ----------- ----------- ---------- ----------
Total Return (A) ...................... 35.52% (4.26%) 15.29% 6.84% 33.48%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ........................ 1.08% 1.00% 1.00% 1.00% 1.00%
Net investment income ............... 1.20% 1.66% 2.04% 1.82% 2.34%
Portfolio Turnover Rate ............... 37.59% 46.17% 81.96% 87.87% 152.56%
Net Assets, At End of Period .......... $29,144,161 $18,679,228 $14,885,337 $9,457,836 $4,445,996
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost.
(B) A portion of all related party fees of the Fund have been waived for 1995,
1994 and 1993. All related party fees have been waived and all other expenses
of the Fund have been assumed in part for 1992 and 1991 by Chubb Life. Had
the fees not been waived and expenses not been assumed, the ratios of
expenses to average net assets would have been 1.69% in 1995, 1.71% in 1994,
1.92% in 1993 and 2.50% in 1992 and 1991, pursuant to the most restrictive
state limitation.
See notes to financial statements.
33
<PAGE> 53
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period.
<TABLE>
<CAPTION>
CHUBB CAPITAL APPRECIATION FUND
-------------------------------
PERIOD FROM
SEPTEMBER 1,
1995 THROUGH
DECEMBER
31, 1995
------------
<S> <C>
Net asset value, beginning of
period ....................................................... $ 10.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...................................... 0.037
Net gains and
losses on securities (both
realized and unrealized) ................................. 0.422
----------
Total from investment operations ........................... 0.459
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........................................ (0.037)
Dividends in excess of
net investment income.....................................
Distributions from capital
gains .................................................... (0.022)
Distributions in excess of
capital gains ............................................
Returns of capital .........................................
----------
Total distributions ........................................ (0.059)
Net asset value, end of period ............................... $ 10.400
Total Return (A) ............................................. 4.60%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ............................................... 1.25%
Net investment income ...................................... 1.38%
Portfolio Turnover Rate ...................................... 2.73%
Net Assets, At End of Period ................................. $1,596,254
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost. Total return for period of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived, and a
portion of other expenses of the Fund have been assumed for 1995. Had the
fees not been waived and expenses not been assumed, the ratios of expenses to
average net assets would have been 2.50% in 1995, pursuant to the most
restrictive state limitation.
See notes to financial statements.
34
<PAGE> 54
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS--(CONTINUED)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB GLOBAL INCOME FUND
------------------------
PERIOD FROM
SEPTEMBER 1,
1995 THROUGH
DECEMBER
31, 1995
------------
<S> <C>
Net asset value, beginning of
period .......................................................... $ 10.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ........................................... 0.116
Net gains and
losses on securities (both
realized and unrealized) ....................................... 0.210
-----------
Total from investment
operations .................................................... 0.326
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ............................................. (0.116)
Dividends in excess of
net investment income .........................................
Distributions from capital
gains ..........................................................
Distributions in excess of
capital gains .................................................
Returns of capital ..............................................
-----------
Total distributions ............................................. (0.116)
-----------
Net asset value, end of period .................................. $ 10.210
-----------
Total Return (A) ................................................ 3.27%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ................................................... 1.75%
Net investment income ........................................... 4.48%
Portfolio Turnover Rate ......................................... 14.16%
Net Assets, At End of Period .................................... $10,705,562
</TABLE>
(A) Total return assumes reinvestment of all dividends during the year and does
not reflect deduction of sales charge. Investment returns and principal
values will fluctuate and shares, when redeemed, may be worth more or less
than the original cost. Total return for period of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived for 1995.
Had the fees not been waived and expenses not been assumed, the ratios of
expenses to average net assets would have been 2.14% in 1995, pursuant to the
most restrictive state limitation.
See notes to financial statements.
35
<PAGE> 55
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders
Chubb Investment Funds, Inc.
We have audited the accompanying statement of assets and liabilities of Chubb
Investment Funds, Inc. (the "Funds", comprising, respectively, the Chubb Money
Market Fund, Chubb Government Securities Fund, Chubb Total Return Fund, Chubb
Tax-Exempt Fund, Chubb Growth and Income Fund, Chubb Capital Appreciation Fund,
and Chubb Global Income Fund), including the related schedules of investments,
as of December 31, 1995, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended for all Funds except Chubb Capital Appreciation Fund
and Chubb Global Income Fund, for which the statement of operations, statement
of changes in net assets and the financial highlights are for the period from
September 1, 1995 (Commencement of Operations) to December 31, 1995. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers, or other
appropriate auditing procedures where replies from brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds constituting Chubb Investment Funds, Inc. at December
31, 1995, the results of their operations, the changes in their net assets and
the financial highlights for each of the periods indicated above, in conformity
with generally accepted accounting principles.
/s/ Ernst & Young LLP
---------------------
Boston, Massachusetts
February 16, 1996
<PAGE> 56
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<PAGE> 57
[This page intentionally left blank]
<PAGE> 58
This annual report has been prepared for shareholders of the Chubb Investment
Funds. It must be preceded or accompanied by a prospectus if used for
prospecting purposes. Always read the prospectus carefully before investing or
sending money.
[CHUBB INVESTMENT FUNDS, INC. LOGO]
CHUBB INVESTMENT FUNDS, INC.
Distributed by Chubb Securities Corporation
One Granite Place, Concord, New Hampshire 03301
1-800-452-4882
Shareholder Services 1-800-541-2053
<PAGE> 59
CHUBB BULK RATE
INVESTMENT US POSTAGE PAID
FUNDS
ONE GRANITE PLACE PERMIT NO.
PO BOX 515 ASHLAND, MA
CONCORD, NH 03302
Form 3-5914 Ed. 2/96
