<PAGE> 1
CHUBB LOGO
CHUBB
INVESTMENT
FUNDS
SEMI-ANNUAL
REPORT 1996
MONEY MARKET FUND
GOVERNMENT SECURITIES FUND
TOTAL RETURN FUND
TAX-EXEMPT FUND
GROWTH AND INCOME FUND
CAPITAL APPRECIATION FUND
GLOBAL INCOME FUND
<PAGE> 2
CHUBB INVESTMENT FUNDS, INC.
ONE GRANITE PLACE
CONCORD, NEW HAMPSHIRE 03301
Dear Fellow Shareholders:
The first half of 1996 produced mixed results. Equity funds generally
appreciated while fixed income funds showed minor declines. We are pleased with
the performance of the Chubb Investment Funds over this period of time. Though
the market has shown few surprises in the first half, we suspect that the next
12 months will be anything but dull; significant changes in the securities
markets are occurring and we are monitoring them closely.
While equity markets continued to rise throughout much of the first half of
1996, after February there was very little momentum. Massive flows of money into
stock mutual funds were unable to move the market, a clear sign that this bull
market is getting tired. At the same time, the majority of financial
publications and financial advisors are recommending maximum commitment to
common stocks; their comments are being received willingly by an audience that
is increasingly convinced that equities only go up, and that when dips occur
they are to be viewed as simply buying opportunities. The balance between the
two investment emotions - fear and greed - has shifted significantly toward
greed, suggesting to us that this is a time for caution and careful analysis.
As you know, our investment philosophy has always been to maximize return over
the long term and we never invest in anything without analyzing potential
downside risk. We have just been through a period when equities significantly
exceeded historical results and history suggests that returns revert toward the
mean over time. Rather than commit fully to the equity market now, a program of
dollar cost averaging taking full advantage of volatility should be rewarding.
Finally, we should point out that the 4.5% yield currently available in money
market funds is an acceptable return in a 3% inflation environment. Although we
do not suggest that keeping excess cash is a good long term strategy, it is a
good tactical move while a dollar cost averaging program is implemented.
What might the next bear market be like? Recent down drafts in stock prices have
been sharp and quick and almost over before they could be defined as bear
markets. Many investors have come to view such sharp declines as simply buying
opportunities. We suspect that the next bear market is more likely to be a
prolonged affair where the current wisdom of buying the dips may prove
frustrating. Such a bear market might last for 9 months to a year and, as
always, speculators, because of greed and perhaps excess leverage, may panic and
sell at the bottom.
In summary, we suggest that a disciplined well thought out investment plan is
more important now than over the past 15 years. Don't try to time the market
because you are operating against professionals that have access to information
faster than you do. Focus on the long term. But remember, volatility creates
opportunities for those with discipline.
Sincerely,
/s/ Michael O'Reilly
-------------------------------
Michael O'Reilly
President
Chubb Investment Funds, Inc.
<PAGE> 3
[This page intentionally left blank]
<PAGE> 4
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION
MONEY MARKET FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 1]
Short-Term Obligations-97.71%
Cash-2.29%
PORTFOLIO QUALITY DOLLAR WEIGHTED AVERAGE MATURITY
<TABLE>
<CAPTION>
% OF
RATING PORTFOLIO RATING DAYS
<S> <C> <C> <C>
AAA 100.00% AAA 32.00
</TABLE>
DOLLAR WEIGHTED AVERAGE COUPON
5.11%
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 2]
U.S. Government and Agency Obligations-94.45%
Cash-5.55%
<TABLE>
<CAPTION>
DOLLAR WEIGHTED AVERAGE MATURITY DOLLAR WEIGHTED AVERAGE COUPON
YEARS
<S> <C>
20.83 8.13%
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO DURATION 30 DAY SEC YIELD
YEARS
<S> <C>
5.00 6.37%
</TABLE>
- --------------------------------------------------------------------------------
++ Represents market value of investments plus uninvested cash.
i
<PAGE> 5
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION-Continued
TOTAL RETURN FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 3]
Common Stock-67.28%
U.S. Government and Agency Obligations-24.15%
Cash-8.57%
<TABLE>
<CAPTION>
% OF % OF
TOP TEN EQUITIES PORTFOLIO TOP TEN INDUSTRIES PORTFOLIO
<S> <C> <C> <C>
Philip Morris Companies, Inc. 2.68% Banking 7.27%
General Motors Corp., Class H 2.43% Insurance 6.74%
Mellon Bank Corp. 2.34% Food Processing 5.70%
Asia Pulp & Paper Co., Ltd., ADR 2.30% Financial Services 3.78%
Canadian Pacific, Ltd. 2.26% Textiles &Apparel 3.60%
Merrill Lynch & Company 2.14% Electronics 3.49%
Borg-Warner Automotive, Inc. 2.05% Automotive Manufacturing 3.38%
Ultramar Corporation 2.05% Automotive Parts & Accessories 3.37%
Circuit City Stores, Inc. 2.03% Building Materials 3.33%
Burlington Industries, Inc. 1.95% Aerospace - Defense 2.43%
</TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 4]
Municipal Bonds-95.98%
Cash-4.02%
PORTFOLIO QUALITY
<TABLE>
<CAPTION>
% OF
RATING PORTFOLIO
<S> <C>
AAA 33.80%
AA 27.75%
A 26.94%
BBB 4.95%
B 6.56%
</TABLE>
DOLLAR WEIGHTED AVERAGE MATURITY
YEARS
15.56
PORTFOLIO DURATION
YEARS
6.80
30 DAY SEC YIELD
4.49%
- --------------------------------------------------------------------------------
++ Represents market value of investments plus uninvested cash.
ii
<PAGE> 6
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION-Continued
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 5]
Common Stock-99.05%
Cash-0.95%
<TABLE>
<CAPTION>
% OF % OF
TOP TEN EQUITIES PORTFOLIO TOP TEN INDUSTRIES PORTFOLIO
<S> <C> <C> <C>
Compaq Computer Corp. 3.73% Banking 11.13%
Circuit City Stores, Inc. 3.57% Insurance 8.96%
Asia Pulp & Paper Co., Ltd., ADR 3.52% Food Processing 8.11%
Canadian Pacific, Ltd. 3.43% Automotive Parts & Accessories 6.08%
Merrill Lynch & Company 3.25% Financial Services 5.70%
Philip Morris Companies, Inc. 3.15% Automotive Manufacturing 5.64%
Archer-Daniels Midland Company 3.12% Electronics 5.46%
Borg-Warner Automotive, Inc. 3.12% Mining & Metals 5.42%
Ultramar Corporation 3.08% Computers 3.73%
Mellon Bank Corporation 3.05% Retail - Specialty 3.57%
</TABLE>
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 6]
Common Stock-90.66%
Cash-9.34%
<TABLE>
<CAPTION>
% OF % OF
TOP TEN EQUITIES PORTFOLIO TOP TEN INDUSTRIES PORTFOLIO
<S> <C> <C> <C>
Tektronix, Inc. 3.64% Insurance 16.30%
Buckeye Cellulose Corp. 3.52% Financial Services 6.16%
West Co., Inc. 3.50% Building Materials 6.09%
LaSalle Re Holdings, Ltd. 3.29% Food Processing 5.63%
Cagle's, Inc., Class A 3.28% Forest Products 5.18%
Dime Bancorp, Inc. 3.17% Textiles & Apparel 4.13%
Owens-Illinois, Inc. 3.12% Electronics 3.64%
Ply-Gem Industries, Inc. 3.07% Oil - Domestic 3.53%
Security Connecticut Corp. 3.03% Medical Supplies 3.50%
Pioneer Financial Services, Inc. 3.02% Packaging & Containers 3.12%
</TABLE>
- --------------------------------------------------------------------------------
++ Represents market value of investments plus uninvested cash.
iii
<PAGE> 7
CHUBB INVESTMENT FUNDS, INC.
PORTFOLIO COMPOSITION-Continued
GLOBAL INCOME FUND
- --------------------------------------------------------------------------------
% OF PORTFOLIO++
[PIE CHART 7]
U.S. and Foreign Government Obligation-77.4%
Corporate Bonds-15.98%
Cash-6.55%
<TABLE>
<CAPTION>
% OF
TOP TEN COUNTRIES PORTFOLIO
<S> <C>
United States 19.17%
France 15.35%
Germany 12.47%
United Kingdom 9.01%
Brazil 8.27%
Italy 7.52%
Netherlands 6.61%
Canada 4.72%
Spain 3.60%
Sweden 2.62%
</TABLE>
PORTFOLIO DURATION
YEARS
5.30
DOLLAR WEIGHTED AVERAGE MATURITY
YEARS
8.51
- --------------------------------------------------------------------------------
++ Represents market value of investments plus uninvested cash.
iv
<PAGE> 8
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB MONEY MARKET FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS-98.64%
Federal Home Loan Bank Discount Note, 5.280%, ............................
due 07/29/96 $2,400,000 $2,389,440
Federal National Mortgage Association Discount Note,
5.270% due 07/12/96 .................................................... 1,700,000 1,696,765
Federal National Mortgage Association Discount Note,
5.230%, due 07/30/96 ................................................... 660,000 657,027
U.S. Treasury Bill, 4.990%, due 08/15/96 ................................. 4,150,000 4,122,964
----------
TOTAL INVESTMENTS
(Cost $8,866,196*) ............................... 98.64% 8,866,196
Other assets, less liabilities ....................... 1.36 122,303
---------- ----------
TOTAL NET ASSETS .................................. 100.00% $8,988,499
========== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
1
<PAGE> 9
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB GOVERNMENT SECURITIES FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS-93.79%
Federal Home Loan Mortgage Company, CMO,
Series 1058-H, 8.000%, due 04/15/21 .................................... $ 674,900 $ 678,706
Federal National Mortgage Association, Pool #029420,
9.000%, due 07/01/01 ................................................... 37,585 39,183
Federal National Mortgage Association, Pool #282883,
7.000%, due 05/01/24 ................................................... 216,368 208,455
Federal National Mortgage Association, Pool #306175,
7.000%, due 01/01/25 ................................................... 3,515,446 3,386,882
Government National Mortgage Association, Pool #166009,
9.000%, due 06/15/16 ................................................... 102,067 106,915
Government National Mortgage Association, Pool #780339,
8.000%, due 12/15/23 ................................................... 1,445,068 1,463,896
Government National Mortgage Association, Pool #402760,
8.000%, due 08/15/25 ................................................... 1,484,329 1,499,161
Kidder Peabody Acceptance Corporation, CMO,
Series 20-D, 9.900%, due 10/01/18 ...................................... 120,750 125,035
U.S. Treasury Bond, 10.375%, due 11/15/12 ................................ 3,125,000 3,968,750
U.S. Treasury Note, 5.375%, due 05/31/98 ................................. 150,000 148,031
U.S. Treasury Note, 6.750%, due 05/31/99 ................................. 320,000 323,800
U.S. Treasury Note, 6.750%, due 04/30/00 ................................. 300,000 303,281
U.S. Treasury Note, 8.000%, due 05/15/01 ................................. 300,000 318,843
-----------
TOTAL INVESTMENTS
(Cost $12,727,152*) .............................. 93.79% 12,570,938
Other assets, less liabilities ....................... 6.21 832,056
----------- -----------
TOTAL NET ASSETS .................................. 100.00% $13,402,994
=========== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes
See notes to financial statements.
2
<PAGE> 10
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TOTAL RETURN FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-66.80%
AEROSPACE - DEFENSE-2.41%
General Motors Corporation,
Class H ............................. 10,800 $ 649,350
----------
AUTOMOTIVE MANUFACTURING-3.36%
Chrysler Corporation .................. 7,600 471,200
Ford Motor Company .................... 13,400 433,825
----------
905,025
----------
AUTOMOTIVE PARTS & ACCESSORIES-3.34%
Borg-Warner Automotive, Inc. .......... 13,900 549,050
Cummins Engine, Inc. .................. 8,700 351,263
----------
900,313
----------
BANKING-7.21%
Chase Manhattan Corp. ................. 6,400 452,000
First Chicago NBD Corp. ............... 10,860 424,897
KeyCorp ............................... 11,327 438,921
Mellon Bank Corp. ..................... 11,000 627,000
----------
1,942,818
----------
BUILDING MATERIALS-3.30%
Lafarge Corporation ................... 24,800 502,200
Owens Corning ......................... 9,000 387,000
----------
889,200
----------
COMPUTERS-1.59%
Compaq Computer Corp.+ ................ 8,700 428,475
----------
ELECTRONICS-3.46%
Philips Electronics, N.V .............. 14,600 476,325
Tektronix, Inc. ....................... 10,200 456,450
----------
932,775
----------
FINANCIAL SERVICES-3.76%
Merrill Lynch & Co. ................... 8,800 573,100
PaineWebber Group, Inc. ............... 18,450 438,188
----------
1,011,288
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
FOOD PROCESSING-5.66%
Archer-Daniels Midland
Company ............................. 17,700 $ 338,513
IBP, Inc. ............................. 16,900 466,862
Philip Morris Companies, Inc. ......... 6,900 717,600
----------
1,522,975
----------
FOREST PRODUCTS & PAPER-2.28%
Asia Pulp & Paper Co., Ltd.,
ADR+ ................................ 50,100 613,725
----------
HOLDING COMPANIES-0.71%
Hanson, PLC, ADR ...................... 13,500 192,375
----------
HOUSEHOLD APPLIANCES-1.40%
Whirlpool Corp. ....................... 7,600 377,150
----------
INSURANCE-6.70%
LaSalle Re Holdings, Ltd. ............. 20,000 450,000
Old Republic International
Corp ............................... 22,200 477,300
Progressive Corp. ..................... 11,000 508,750
W.R. Berkley Corporation .............. 8,800 367,400
----------
1,803,450
----------
MINING & METALS-1.18%
Cyprus Amax Minerals Company .......... 14,000 316,750
----------
OIL - DOMESTIC-1.76%
Atlantic Richfield Company ............ 4,000 474,000
----------
OIL - INTERNATIONAL-1.63%
YPF Sociedad Anonima S.A.,
ADR ................................. 19,500 438,750
----------
OIL - REFINING-2.03%
Ultramar Corp ......................... 18,900 548,100
----------
PACKAGING & CONTAINERS-0.89%
Owens-Illinois, Inc.+ ................. 15,000 240,000
----------
RAILROADS-1.32%
Canadian National Railway
Company ............................. 19,400 356,475
----------
</TABLE>
- ---------------
+ Non-income producing security.
See notes to financial statements.
3
<PAGE> 11
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TOTAL RETURN FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-Continued
RETAIL - SPECIALTY-2.01%
Circuit City Stores, Inc. ............ 15,000 $ 541,875
----------
RETAIL STORES-1.88%
May Department Stores
Company ............................ 11,600 507,500
----------
SHIPPING & FREIGHT-1.80%
Federal Express Corp.+ ............... 5,900 483,800
----------
TECHNOLOGY - SEMICONDUCTORS-1.30%
Avnet, Inc. .......................... 8,300 349,637
----------
TEXTILES & APPAREL-3.57%
Burlington Industries, Inc.+ ......... 36,900 521,213
Reebok International, Ltd. ........... 13,100 440,487
----------
961,700
----------
TRANSPORTATION - RAIL & TRUCK-2.25%
Canadian Pacific, Ltd. ............... 27,500 605,000
----------
TOTAL COMMON STOCK
(Cost $14,719,051) ............... 17,992,506
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS-23.97%
U.S. Treasury Note, 6.250%,
due 02/15/03 ............... $ 2,750,000 $ 2,701,012
U.S. Treasury Note, 7.250%,
due 08/15/04 ............... 2,900,000 3,003,312
U.S. Treasury Note, 7.875%,
due 11/15/04 ............... 700,000 752,718
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $6,689,890) ........ 6,457,042
-----------
TOTAL INVESTMENTS
(Cost $21,408,941*) ...... 90.77% 24,449,548
Other assets, less liabilities 9.23 2,485,835
----------- -----------
TOTAL NET ASSETS .......... 100.00% $26,935,383
=========== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
4
<PAGE> 12
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TAX-EXEMPT FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
MUNICIPAL OBLIGATIONS-94.89%
ALASKA-3.33%
Anchorage, Alaska, Hospital Revenue, (Sisters of Providence Project),
Series 1991, 6.750%, due 10/01/02+ .................................... $ 150,000 $ 163,606
North Slope Boro, Alaska, General Obligation, MBIA Insured, Zero Coupon,
Eff. Yield 4.750%, due 06/30/04 ....................................... 550,000 361,538
----------
525,144
----------
COLORADO-0.72%
Platte River Power Authority, Colorado, Power Revenue,
Series AA, 6.875%, due 06/01/16+ ...................................... 110,000 113,994
----------
CONNECTICUT-1.12%
Connecticut State, General Obligation, Series C, 7.000%,
Prerefunded to 09/15/00 at 102+ ....................................... 160,000 176,990
----------
DISTRICT OF COLUMBIA-8.18%
District of Columbia, Cert. of Participation, 7.300%, due 01/01/03+ ..... 300,000 303,970
District of Columbia, Series 93-A, Refunding, 5.875%, due 06/01/05 ...... 500,000 483,809
District of Columbia, Series A-3, 5.500%, due 06/01/06 .................. 250,000 234,516
Metropolitan Washington Airport Authority Revenue Bonds,
Series 92A, MBIA Insured, 6.500%, due 10/01/07+ ....................... 250,000 267,414
----------
1,289,709
----------
GEORGIA-2.36%
Cartersville, Georgia Development Authority, Water & Wastewater
Facilities-Anheuser Busch, AMT, 6.750%, due 02/01/12+ ................. 250,000 265,901
Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue,
Series K, 7.250%, due 07/01/10+ ....................................... 100,000 106,277
----------
372,178
----------
ILLINOIS-7.05%
Cook County, Illinois, General Obligation, MBIA Insured, Series 1990,
7.000%, due 11/01/99 .................................................. 150,000 161,406
Illinois Housing Development Authority, Residential Mortgage Revenue,
Series B, 7.750%, due 08/01/23+ ....................................... 65,000 66,925
Illinois State Sales Tax Revenue, 6.800%, Prerefunded to 06/15/00 at 102+ 150,000 164,221
Illinois State Toll Highway, Series 92A, 6.375%, due 01/01/15+ .......... 350,000 360,642
Metropolitan Pier & Exposition Authority, Illinois, McCormick
Place Expansion Project, Series 92A, 6.500%, due 06/15/27+ ............ 350,000 358,576
----------
1,111,770
----------
</TABLE>
- ---------------
+ Issued with call provisions.
See notes to financial statements.
5
<PAGE> 13
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TAX-EXEMPT FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
INDIANA-7.53%
Indiana Bond Bank, Revenue, State Revolving Fund,
6.000%, due 02/01/15+ ................................................ $ 550,000 $ 547,525
Indiana Municipal Power Supply, 5.650%, MBIA Insured,
due 01/01/15+ ........................................................ 500,000 481,482
Indiana State Housing Finance Authority, Single Family Mortgage 1990,
Series C, AMT, 7.800%, due 01/01/22+ ................................. 150,000 157,975
----------
1,186,982
----------
KENTUCKY-1.12%
Kentucky Turnpike Authority, Economic Development Revenue,
7.250%, Prerefunded to 05/15/00 at 101.50+ ........................... 160,000 176,672
----------
LOUISIANA-1.37%
Jefferson, Louisiana, Sales Tax Revenue, Refunding, FGIC Insured,
Series A, 6.750%, Prerefunded to 12/01/06+ ........................... 200,000 216,398
----------
MAINE-1.48%
Maine Educational Loan Authority, Series 92A, AMT, 6.950%,
due 12/01/07+ ........................................................ 220,000 233,277
----------
MASSACHUSETTS-3.85%
Massachusetts State, Construction Loan, Series A, 6.000%,
due 06/01/11+ ........................................................ 600,000 606,578
----------
MINNESOTA-0.67%
Northern Municipal Power Agency, Minnesota, Electric System Revenue,
Series A, 7.250%, due 01/01/16+ ...................................... 100,000 105,360
----------
MISSOURI-1.06%
Missouri Health & Educational Facilities Authority, St. Luke's Hospital,
MBIA Insured, 7.000%, Prerefunded to 11/15/01 at 102+ ................ 150,000 167,875
----------
NEVADA-1.03%
Nevada State, General Obligation, Series A, 6.750%,
Prerefunded to 08/01/99 at 102+ ...................................... 150,000 162,291
----------
NEW HAMPSHIRE-1.40%
New Hampshire Turnpike System, Revenue, Series A, FGIC Insured,
6.750%, due 11/01/11+ ................................................ 200,000 221,049
----------
</TABLE>
- ---------------
+ Issued with call provisions.
See notes to financial statements.
6
<PAGE> 14
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TAX-EXEMPT FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
NEW JERSEY-7.24%
New Jersey Economic Development Authority, The Seeing Eye, Inc. .........
Project, 7.300%, due 04/01/11+ ........................................ $ 650,000 $ 685,968
New Jersey Wastewater Treatment Revenue, 6.875%, due 06/15/07+ .......... 180,000 194,621
Salem County, New Jersey, PCR Waste Disposal Authority Revenue,
E.I. DuPont Project, AMT, 6.500%, due 11/15/21+ ....................... 250,000 261,739
----------
1,142,328
----------
NEW YORK-9.68%
Metropolitan Transportation Authority, New York, Transit Facilities,
Series 2, 8.000%, Prerefunded to 07/01/98 at 102+ ..................... 100,000 109,207
Municipal Assistance Corporation for City of New York, Series 57, 7.250%,
due 07/01/08+ ......................................................... 125,000 127,536
New York City, New York, General Obligation, Series H, 6.875%,
due 02/01/02 .......................................................... 250,000 264,432
New York City, New York, General Obligation, Series H,
Subseries H-I, 5.800%, due 07/01/04 ................................... 250,000 249,187
New York State Local Government Assistance Corporation, Series B,
5.500%, due 04/01/21+ ................................................. 450,000 421,131
New York State Medical Care Facilities, Finance Agency Revenue,
FHA Insured, Mortgage Hospital A, 8.000%, due 02/15/25+ ............... 100,000 106,642
New York State Thruway Authority, Highway and Bridge Trust Fund,
Series A, MBIA Insured, 5.600%, due 04/01/2010+ ....................... 250,000 248,084
----------
1,526,219
----------
OKLAHOMA-4.54%
Grand River Dam Power Authority, Oklahoma, Revenue, 7.000%,
Prerefunded to 06/01/97 at 102+ ....................................... 160,000 167,709
Oklahoma Industrial Development Authority, Sisters of Mercy, Series A,
5.000%, due 06/01/13+ ................................................. 600,000 548,659
----------
716,368
----------
PENNSYLVANIA-6.23%
Pennsylvania Housing Finance Agency, FNMA, Issue 1993, 5.750%,
due 07/01/14+ ......................................................... 700,000 678,641
Philadelphia, PA, Hospital & Higher Education Facility Authority,
(Children's Hospital), 5.000%, due 02/15/21+ .......................... 350,000 303,224
----------
981,865
----------
</TABLE>
- ---------------
+ Issued with call provisions.
See notes to financial statements.
7
<PAGE> 15
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TAX-EXEMPT FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C>
SOUTH CAROLINA-0.87%
South Carolina State Public Service Authority, Electric Revenue &
Electric System Expansion Revenue, Series A, 7.300%, due 07/01/21+ ........ $ 135,000 $ 137,739
----------
TENNESSEE-4.74%
Memphis-Shelby Company, Tennessee Airport Authority,
(Federal Express Corp.), AMT, 6.750%, due 09/01/12+ ....................... 250,000 259,009
Tennessee Housing Development Agency, 1993 Series A, 5.900%,
due 07/01/18+ ............................................................. 500,000 488,563
----------
747,572
----------
TEXAS-8.23%
Austin, Texas, Utility System Revenue Combined, Series C, 7.300%,
Prerefunded to 11/15/01 at 100+ ........................................... 60,000 67,064
Brazos River Authority, Texas, Revenue Collateral, Houston Light & Power Co.,
7.750%, due 10/01/15+ ..................................................... 60,000 64,162
Houston, Texas, Independent School District, Permanent School Fund,
Zero Coupon, Eff. Yield 6.700%, due 08/15/13 .............................. 1,150,000 424,721
Lower Colorado River Authority, Texas, Revenue, Priority, 7.000%,
Prerefunded to 01/01/97 at 102+ ........................................... 100,000 103,563
Texas State Public Financing Authority Revenue, Series A, 7.375%,
Prerefunded to 02/01/98 at 100+ ........................................... 140,000 146,712
Texas Veterans Housing Association, Series B-1, AMT,
5.700%, due 12/01/14+ ..................................................... 510,000 490,854
----------
1,297,076
----------
UTAH-0.93%
Intermountain Power Agency, Utah, Special Obligation Revenue,
5th Crossover Refunding, 7.200%, due 07/01/19+ ............................ 140,000 146,107
----------
VIRGINIA-0.65%
Virginia State Housing Development Authority, Commonwealth Mortgage,
6.700%, due 07/01/08+ ..................................................... 100,000 101,932
----------
</TABLE>
- ---------------
+ Issued with call provisions.
See notes to financial statements.
8
<PAGE> 16
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB TAX-EXEMPT FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
VALUE (NOTE B)
--------- --------
<S> <C> <C> <C>
WASHINGTON-9.51%
Lewis County, Washington, PUD #1, Revenue Series 91, 7.000%,
Prerefunded to 10/01/01 at 102+ .................................... $ 250,000 $ 279,288
Washington Health Care Facilities Authority, Revenue,
(Group Health Co-Op), MBIA Insured, 6.750%, due 12/01/11+ .......... 300,000 313,618
Washington Health Care Facilities Authority, Revenue, Series 93,
(Sisters of Providence), 6.250%, due 10/01/13+ .................... 500,000 502,031
Washington Housing Finance Commission, GNMA/FNMA MBS Programs,
7.100%, due 07/01/22+ .............................................. 145,000 151,157
Washington State Public Power Supply System, Nuclear Project Number 2,
Revenue, Series 90C, 7.625%, Prerefunded to 01/01/01/at 102+ ....... 100,000 112,969
Washington State Public Power Supply System, Nuclear Project Number 3,
Revenue, 7.500%, Prerefunded to 07/01/00 at 102+ ................... 125,000 140,019
-----------
1,499,082
-----------
TOTAL INVESTMENTS (Cost $14,483,141*) ............................. 94.89% 14,962,555
Other assets, less liabilities ....................................... 5.11 805,145
----------- -----------
TOTAL NET ASSETS .................................................. 100.00% $15,767,700
=========== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Issued with call provisions.
See notes to financial statements.
9
<PAGE> 17
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB GROWTH AND INCOME FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-96.98%
AUTOMOTIVE MANUFACTURING-5.52%
Chrysler Corporation .................. 15,700 $ 973,400
Ford Motor Company .................... 28,600 925,925
----------
1,899,325
----------
AUTOMOTIVE PARTS & ACCESSORIES-5.95%
Borg-Warner Automotive, Inc. .......... 26,600 1,050,700
Cummins Engine, Inc. .................. 24,700 997,262
----------
2,047,962
----------
BANKING-10.89%
Chase Manhattan Corp. ................. 13,600 960,500
First Chicago NBD Corp. ............... 21,901 856,877
KeyCorp ............................... 23,311 903,301
Mellon Bank Corp. ..................... 18,050 1,028,850
----------
3,749,528
----------
BUILDING MATERIALS-2.54%
Owens Corning ......................... 20,300 872,900
COMPUTERS-3.65%
Compaq Computer Corp.+ ................ 25,500 1,255,875
----------
ELECTRONICS-5.34%
Philips Electronics, N.V .............. 28,500 929,813
Tektronix, Inc. ....................... 20,300 908,425
----------
1,838,238
----------
FINANCIAL SERVICES-5.58%
Merrill Lynch & Co. ................... 16,800 1,094,100
PaineWebber Group, Inc. ............... 34,850 827,688
----------
1,921,788
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
FOOD PROCESSING-7.94%
Archer-Daniels Midland
Company ............................. 55,000 $1,051,875
IBP, Inc. ............................. 22,500 621,563
Philip Morris Companies, Inc. ......... 10,200 1,060,800
----------
2,734,238
----------
FOREST PRODUCTS-3.45%
Asia Pulp & Paper Co., Ltd.,
ADR+ ................................ 96,900 1,187,025
----------
HOLDING COMPANIES-2.82%
Hanson PLC, ADR ....................... 68,000 969,000
----------
HOUSEHOLD APPLIANCES-1.70%
Whirlpool Corp. ....................... 11,800 585,575
----------
INSURANCE-8.77%
LaSalle Re Holdings, Ltd. ............. 28,000 630,000
Old Republic International
Corp ................................ 45,600 980,400
Progressive Corp. ..................... 18,100 837,125
W.R. Berkley Corp. .................... 13,700 571,975
----------
3,019,500
----------
MINING & METALS-5.31%
Cyprus Amax Minerals
Company ............................. 35,700 807,712
Inco, Ltd., ADR ....................... 31,600 1,019,100
----------
1,826,812
----------
OIL - DOMESTIC-2.62%
Atlantic Richfield Company ............ 7,600 900,600
----------
OIL - INTERNATIONAL-2.37%
YPF Sociedad Anonima S.A.,
ADR ................................. 36,200 814,500
----------
</TABLE>
- ---------------
+Non-income producing security.
See notes to financial statements.
10
<PAGE> 18
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB GROWTH AND INCOME FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-Continued
OIL - REFINING-3.02%
Ultramar Corp. ........................ 35,800 $1,038,200
----------
PACKAGING & CONTAINERS-0.80%
Owens-Illinois, Inc.+ ................. 17,300 276,800
----------
RAILROADS-1.96%
Canadian National Railway
Company ............................. 36,800 676,200
----------
RETAIL - SPECIALTY-3.50%
Circuit City Stores, Inc. ............. 33,300 1,202,962
----------
RETAIL STORES-2.30%
May Department Stores
Company ............................. 18,100 791,875
----------
SHIPPING & FREIGHT-2.48%
Federal Express Corp.+ ................ 10,400 852,800
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
TECHNOLOGY - SEMICONDUCTORS-2.14%
Avnet, Inc. ........................... 17,500 $ 737,187
-----------
TEXTILES & APPAREL-2.97%
Payless ShoeSource, Inc.+ ............. 496 15,748
Reebok International, Ltd. ............ 29,900 1,005,388
-----------
1,021,136
-----------
TRANSPORTATION - RAIL & TRUCK-3.36%
Canadian Pacific, Ltd. ................ 52,600 1,157,200
-----------
TOTAL INVESTMENTS
(Cost $27,943,926*) ............... 96.98% 33,377,226
Other assets, less liabilities ........ 3.02 1,037,871
------ -----------
TOTAL NET ASSETS ................... 100.00% $34,415,097
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
11
<PAGE> 19
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBBCAPITAL APPRECIATION FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-89.68%
AUTOMOTIVE PARTS & ACCESSORIES-2.57%
Borg-Warner Automotive, Inc. .......... 1,500 $ 59,250
Cummins Engine, Inc. .................. 900 36,337
--------
95,587
--------
BUILDING MATERIALS-6.02%
Lafarge Corporation ................... 5,500 111,375
Ply-Gem Industries, Inc. .............. 8,300 113,088
--------
224,463
--------
COMMERCIAL SERVICES-1.83%
PHH Corp. ............................. 1,200 68,400
--------
COMPUTERS-2.72%
Banctec, Inc.+ ........................ 5,000 101,250
--------
ELECTRICAL EQUIPMENT-2.39%
Ametek, Inc. .......................... 4,100 89,175
--------
ELECTRONICS-3.60%
Tektronix, Inc. ....................... 3,000 134,250
--------
ENTERTAINMENT & LEISURE-1.66%
King World Productions, Inc.+ ......... 1,700 61,837
--------
FINANCIAL SERVICES-6.10%
Dime Bancorp, Inc.+ ................... 9,000 117,000
Greenpoint Financial Corp. ............ 3,900 110,175
--------
227,175
--------
FOOD PROCESSING-5.57%
Cagle's, Inc., Class A ................ 7,500 120,937
Hudson Foods, Inc., Class A ........... 6,200 86,800
--------
207,737
--------
FOOD PRODUCERS-1.23%
Archer-Daniels Midland Co. ............ 2,400 45,900
--------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
FOREST PRODUCTS-5.13%
Asia Pulp & Paper Co., Ltd.,
ADR+ ................................ 5,000 $ 61,250
Buckeye Cellulose Corp.+ .............. 4,700 129,837
--------
191,087
--------
HOLDING COMPANIES-1.99%
Hanson, PLC, ADR ...................... 5,200 74,100
--------
HOUSEHOLD APPLIANCES-1.23%
Maytag Corp. .......................... 2,200 45,925
--------
INSURANCE-16.12%
LaSalle ReHoldings, Ltd. .............. 5,400 121,500
Life Re Corporation ................... 2,600 80,275
Old Republic International
Corp ................................ 3,450 74,175
Pioneer Financial Services, Inc. ...... 6,700 111,388
Security Connecticut Corp. ............ 4,100 111,725
The PMI Group, Inc. ................... 2,400 102,000
--------
601,063
--------
MACHINE TOOLS-2.69%
Commercial Intertech Corp. ............ 3,900 100,425
--------
MEDICAL SUPPLIES-3.46%
West Co., Inc. ........................ 4,300 129,000
--------
METALS-2.67%
Cyprus Amax Minerals
Company ............................. 4,400 99,550
--------
OIL - DOMESTIC-3.49%
Diamond Shamrock, Inc.+ ............... 1,700 49,088
YPF Sociedad Anonima S.A.,
ADR ................................. 3,600 81,000
--------
130,088
--------
OIL - INTERNATIONAL-1.48%
Utlramar Corp. ........................ 1,900 55,100
--------
</TABLE>
- ---------------
+ Non-income producing security.
See notes to financial statements.
12
<PAGE> 20
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBBCAPITAL APPRECIATION FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
COMMON STOCK-Continued
PACKAGING & CONTAINERS-3.09%
Owens-Illinois, Inc.+ ................. 7,200 $115,200
--------
RAILROADS-1.97%
Canadian National Railway ............. 4,000 73,500
--------
RETAIL - SPECIALTY-1.45%
Circuit City .......................... 1,500 54,187
--------
SHIPPING & FREIGHT-2.64%
Rollins Truck Leasing ................. 9,500 98,563
--------
STEEL-0.92%
LTV Corp. ............................. 3,000 34,125
--------
TEXTILES &APPAREL-4.09%
Burlington Industries, Inc.+ .......... 4,600 64,975
Reebok International, Ltd. ............ 2,600 87,425
--------
152,400
--------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF VALUE
COMPANY SHARES (NOTE B)
- ------- ------ --------
<S> <C> <C>
TOBACCO-1.33%
RJR Nabisco Holdings Corp. ............ 1,600 $ 49,600
----------
TRANSPORTATION - SHIPPING-2.24%
Canadian Pacific, Ltd. ................ 3,800 83,600
----------
TOTAL INVESTMENTS
(Cost $3,087,000*) ................ 89.68% 3,343,287
Other assets, less liabilities ........ 10.32 384,774
------ ----------
TOTAL NET ASSETS ................... 100.00% $3,728,061
====== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Non-income producing security.
See notes to financial statements.
13
<PAGE> 21
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB GLOBAL INCOME FUND
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
LOCAL PAR VALUE
CURRENCY VALUE (NOTE B)
-------- --------- --------
<S> <C> <C> <C>
GOVERNMENT AND AGENCY OBLIGATIONS-75.74%
BELGIUM-2.34%
Government of Belgium, 7.750%, due 10/15/04 ........ BEF 4,000,000 $ 137,330
Government of Belgium, 6.500%, due 03/31/05 ........ BEF 4,000,000 126,567
-----------
263,897
-----------
CANADA-4.61%
Government of Canada, 6.500%, due 06/01/04 ......... CAD 225,000 155,277
Government of Canada, 7.000%, due 12/01/06 ......... CAD 210,000 146,578
Government of Canada, 8.000%, due 06/01/23 ......... CAD 300,000 217,487
-----------
519,342
-----------
DENMARK-1.68%
Government of Denmark, 8.000%, due 05/15/03 ........ DKK 1,050,000 189,495
-----------
FRANCE-3.40%
France O.A.T., 8.500%, due 10/25/08 ................ FRF 1,700,000 381,840
-----------
GERMANY-12.19%
International Bank for Reconstruction & Development,
6.125%, due 09/27/02 ............................. DEM 1,050,000 692,527
International Bank for Reconstruction & Development,
5.875%, due 11/10/03 ............................. DEM 1,050,000 679,420
-----------
1,371,947
-----------
ITALY-7.35%
Government of Italy, 12.000%, due 01/01/02 ......... ITL 420,000,000 309,517
Government of Italy, 12.000%, due 05/01/02 ......... ITL 700,000,000 518,144
-----------
827,661
-----------
NETHERLANDS-6.46%
Government of Netherlands, 8.250%, due 02/15/07 .... NLG 550,000 363,466
Government of Netherlands, 8.250%, due 09/15/07 .... NLG 550,000 363,788
-----------
727,254
-----------
PORTUGAL-4.07%
Government of Portugal, 7.700%, due 06/07/05 ....... FRF 2,200,000 458,333
-----------
SPAIN-3.52%
Government of Spain, 11.300%, due 01/15/02 ......... ESP 22,000,000 192,786
Government of Spain, 10.300%, due 06/15/02 ......... ESP 24,000,000 203,142
-----------
395,928
-----------
SWEDEN-2.56%
Government of Sweden, 5.000%, due 02/08/01 ......... DEM 450,000 288,312
-----------
UNITED KINGDOM-8.81%
U.K. Treasury, 8.000%, due 09/25/09 ................ GBP 310,000 479,783
U.K. Treasury, 6.250%, due 11/25/10 ................ GBP 393,000 511,480
-----------
991,263
-----------
</TABLE>
See notes to financial statements.
14
<PAGE> 22
CHUBB INVESTMENT FUNDS, INC.
SCHEDULE OF INVESTMENTS-(Unaudited)
CHUBB GLOBAL INCOME FUND--(Continued)
JUNE 30, 1996
<TABLE>
<CAPTION>
MARKET
LOCAL PAR VALUE
CURRENCY VALUE (NOTE B)
-------- --------- --------
<S> <C> <C> <C>
GOVERNMENT AND AGENCY OBLIGATIONS-Continued
UNITED STATES-18.75%
U.S. Treasury Bond, 10.375%, due 11/15/12 ............ USD 500,000 $ 635,000
U.S. Treasury Note, 6.250%, due 02/15/03 ............. USD 1,000,000 982,186
U.S. Treasury Note, 6.500%, due 08/15/05 ............. USD 500,000 492,656
-----------
2,109,842
-----------
TOTAL GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $8,594,842) ................................ 8,525,114
-----------
CORPORATE BONDS-15.63%
BRAZIL-8.09%
Banco Nacional, S.A., 11.000%, due 11/28/97 .......... USD 200,000 204,000
Ceval Alimentos, S.A., 10.750%, due 07/11/96 ......... USD 250,000 250,000
Compania General Combustes, S.A., 8.500%, due 02/22/99 USD 250,000 240,938
Metalurgica Gerdau, 10.250%, due 11/23/01 ............ USD 220,000 215,050
-----------
909,988
-----------
FRANCE-7.54%
Credit Locale de France, 6.000%, due 10/31/01 ........ JPY 38,000,000 404,490
KFW International Finance, 6.000%, due 11/29/99 ...... JPY 43,000,000 443,990
-----------
848,480
-----------
TOTAL CORPORATE BONDS
(Cost $1,774,323) ................................ 1,758,468
-----------
TOTAL INVESTMENTS
(Cost $10,369,165*) .............................. 91.37% 10,283,582
Other assets, less liabilities ....................... 8.63 970,816
------ -----------
TOTAL NET ASSETS .................................. 100.00% $11,254,398
====== ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Currency Value
- --------------
<S> <C> <C> <C>
Belgium franc ........... BEF Italian lira ............ ITL
Canadian dollar ......... CAD Japanese yen ............ JPY
Danish krone ............ DKK Netherlands guilder ..... NLG
French franc ............ FRF Spanish peseta .......... ESP
Great British pound ..... GBP United States dollar .... USD
German mark ............. DEM
</TABLE>
- --------------------------------------------------------------------------------
- ---------------
* Aggregate cost for Federal income tax purposes.
See notes to financial statements.
15
<PAGE> 23
CHUBB INVESTMENT FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES-(Unaudited)
JUNE 30, 1996
<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 ........................ $ 8,866,196 $ 12,727,152 $ 21,408,941
============ ============ ============
Investments at market value (Notes B & C) ....... $ 8,866,196 $ 12,570,938 $ 24,449,548
Cash ............................................ 207,689 739,261 2,291,736
Receivable for portfolio securities sold ........ 2,655,000
Receivable for Fund shares sold ................. 33,201 2,420 36,619
Dividends receivable ............................ 35,343
Accrued investment income ....................... 355 101,068 154,111
Deferred organization costs (Note F)
------------ ------------ ------------
Total Assets .............................. 11,762,441 13,413,687 26,967,357
LIABILITIES
Dividends payable ............................... 1,047 124
Payable for portfolio securities purchased ...... 2,389,088
Payable for Fund shares redeemed ................ 380,334 380 6,511
Payable to affiliate (Note D) ................... 3,473 10,189 25,463
Net payable for foreign forward contracts
Organization costs payable (Note F)
------------ ------------ ------------
Total Liabilities ......................... 2,773,942 10,693 31,974
NET ASSETS ....................................... $ 8,988,499 $ 13,402,994 $ 26,935,383
============ ============ ============
NET ASSETS CONSIST OF:
Par value ....................................... $ 89,892 $ 12,999 $ 16,223
Capital paid in ................................. 8,899,352 13,985,851 23,033,362
Undistributed net investment income
Accumulated net realized gain (loss)
from investments ............................... (745) (439,642) 845,191
Accumulated net realized loss from foreign
currency transactions
Net unrealized gain (loss) from investments ..... (156,214) 3,040,607
Net unrealized loss on translation of assets
and liabilities in foreign currencies
------------ ------------ ------------
Net Assets ............................... $ 8,988,499 $ 13,402,994 $ 26,935,383
============ ============ ============
Shares of common stock outstanding (.01 par value,
100,000,000 shares auth. each Fund) ............. 8,989,247 1,299,906 1,622,341
============ ============ ============
NET ASSET VALUE PER SHARE ........................ $ 1.00 $ 10.31 $ 16.60
============ ============ ============
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value divided by .97 on
Government Securities Fund, and Tax-Exempt Fund,
and Global Income Fund, and by .95 on Total
Return Fund, Growth and Income Fund and
Capital Appreication Fund. Money Market Fund
is offered at Net Asset Value per share) ........ $ 1.00 $ 10.63 $ 17.47
============ ============ ============
</TABLE>
See notes to financial statements.
16
<PAGE> 24
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND FUND
- ------------ ------------ ------------ ------------
<C> <C> <C> <C>
$ 14,483,141 $ 27,943,926 $ 3,087,000 $ 10,369,165
============ ============ ============ ============
$ 14,962,555 $ 33,377,226 $ 3,343,287 $ 10,283,582
626,173 318,613 344,343 721,247
646,586 39,276
3,875 33,562 300
71,502 890
249,240 2,328 5,319 293,955
11,171 11,171
- ------------ ------------ ------------ ------------
15,841,843 34,449,817 3,744,586 11,309,955
11
1,919
62,093 1,900
12,039 32,820 3,435 15,967
28,419
11,171 11,171
- ------------ ------------ ------------ ------------
74,143 34,720 16,525 55,557
$ 15,767,700 $ 34,415,097 $ 3,728,061 $ 11,254,398
============ ============ ============ ============
$ 13,196 $ 17,219 $ 3,253 $ 11,446
15,263,059 27,382,669 3,438,722 11,380,752
177,955 12,797
12,031 1,403,954 17,002 (14,523)
(4,812)
479,414 5,433,300 256,287 (85,583)
(32,882)
- ------------ ------------ ------------ ------------
$ 15,767,700 $ 34,415,097 $ 3,728,061 $ 11,254,398
============ ============ ============ ============
1,319,648 1,721,937 325,262 1,144,564
============ ============ ============ ============
$ 11.95 $ 19.99 $ 11.46 $ 9.83
============ ============ ============ ============
$ 12.32 $ 21.04 $ 12.06 $ 10.13
============ ============ ============ ============
</TABLE>
See notes to financial statements.
17
<PAGE> 25
CHUBB INVESTMENT FUNDS, INC.
STATEMENT OF OPERATIONS-(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
CHUBB
CHUBB GOVERNMENT CHUBB
MONEY MARKET SECURITIES TOTAL RETURN
FUND FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Interest .............................. $ 220,922 $ 464,407 $ 204,554
Dividends ............................. 192,804
Foreign taxes withheld ................ (3,332)
Miscellaneous Income .................. 906
----------- ----------- -----------
Total investment
income .............................. 220,922 464,407 394,932
----------- ----------- -----------
Expenses:
Administrative fees (Note D) .......... 14,884 30,757 54,284
Advisory fees (Note D) ................ 6,378 13,697 24,175
Distribution fees (Note D) ............ 10,613 34,177 60,321
State registration fees ............... 5,968 8,967 17,006
Shareholder reports ................... 2,166 3,505 6,141
Professional fees ..................... 2,380 3,815 6,751
Directors' fees ....................... 593 956 1,682
Shareholder servicing costs ........... 7,666 12,344 21,731
Custodian fees ........................ 1,790 1,521 2,204
Security valuation .................... 385 1,219 1,759
Organization expense (Note F) .........
Miscellaneous expenses ................ 735 1,185 2,083
----------- ----------- -----------
Total expenses ....................... 53,558 112,143 198,137
Fees waived by Chubb
Asset Managers, Inc., Chubb
Investment Advisory Corp.,
Chubb Securities Corp., and
expenses assumed by Chubb Life
(Note D) ............................. (32,376) (43,960) (48,049)
----------- ----------- -----------
Net expenses ......................... 21,182 68,183 150,088
----------- ----------- -----------
Net investment income ................ 199,740 396,224 244,844
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain (loss) on investments . 16 62,926 1,060,975
Net realized gain from foreign
currency transactions ..................
Net unrealized gain (loss) on investments (679,189) (109,851)
Net unrealized loss on translation
of assets and liabilities in foreign
currencies .............................
----------- ----------- -----------
Net gain (loss) on investments .......... 16 (616,263) 951,124
----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations ....... $ 199,756 $ (220,039) $ 1,195,968
=========== =========== ===========
</TABLE>
See notes to financial statements.
18
<PAGE> 26
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND FUND
- ----------- ----------- ----------- -----------
<C> <C> <C> <C>
$ 469,405 $ 15,061 $ 9,378 $ 376,514
376,179 20,178
(14,470) (693) (8,182)
906
- ----------- ----------- ----------- -----------
469,405 377,676 28,863 368,332
- ----------- ----------- ----------- -----------
35,147 72,192 5,836 24,516
15,652 32,149 2,599 10,918
39,055 80,220 6,485 27,243
10,470 21,992 1,919 12,566
4,001 8,170 650 5,025
4,361 8,979 730 5,156
1,092 2,237 179 761
14,095 28,899 2,324 9,835
2,728 2,386 2,260 3,080
4,307 1,498 1,440 4,088
1,334 1,334
1,353 2,772 222 944
- ----------- ----------- ----------- -----------
132,261 261,494 25,978 105,466
(54,407) (61,773) (9,915) (10,416)
- ----------- ----------- ----------- -----------
77,854 199,721 16,063 95,050
- ----------- ----------- ----------- -----------
391,551 177,955 12,800 273,282
26,312 1,910,071 17,002 (22,773)
14,261
(518,719) 254,343 233,870 (387,343)
(8,941)
- ----------- ----------- ----------- -----------
(492,407) 2,164,414 250,872 (404,796)
- ----------- ----------- ----------- -----------
$ (100,856) $ 2,342,369 $ 263,672 $ (131,514)
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
19
<PAGE> 27
CHUBB INVESTMENT FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CHUBB
CHUBB GOVERNMENT
MONEY MARKET SECURITIES
FUND FUND
------------------------------ -------------------------------
(UNAUDITED) (UNAUDITED)
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE DECEMBER JUNE DECEMBER
30, 1996 31, 1995 30, 1996 31, 1995
------------ ------------ ------------ ------------
Increase (decrease) in net assets:
From operations:
<S> <C> <C> <C> <C>
Net investment income ......................... $ 199,740 $ 386,265 $ 396,224 $ 838,956
Net realized gain (loss) on
investments .................................. 16 21 62,926 129,275
Net realized gain (loss) from
foreign currency transactions ................
Net unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies ........ (679,189) 1,222,240
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations .............................. 199,756 386,286 (220,039) 2,190,471
Dividends to shareholders from
net investment income ......................... (199,740) (386,265) (396,224) (838,956)
Dividends to shareholders in
excess of net investment income ...............
Distributions to shareholders
from capital gains ............................
Distributions to shareholders
in excess of capital gains ....................
Returns of capital .............................
Increase (decrease) in net assets
derived from shareholder
transactions (Note E) ......................... 1,368,277 125,442 132,779 323
------------ ------------ ------------ ------------
Net increase (decrease) in
net assets ................................... 1,368,293 125,463 (483,484) 1,351,838
Net Assets:
Beginning of period ........................... 7,620,206 7,494,743 13,886,478 12,534,640
------------ ------------ ------------ ------------
End of period ................................. $ 8,988,499 $ 7,620,206 $ 13,402,994 $ 13,886,478
============ ============ ============ ============
Accumulated net
investment income ............................. $ 0 $ 0 $ 0 $ 0
============ ============ ============ ============
<CAPTION>
CHUBB
TOTAL RETURN
FUND
------------------------------
(UNAUDITED)
SIX
MONTHS YEAR
ENDED ENDED
JUNE DECEMBER
30, 1996 31, 1995
------------ ------------
Increase (decrease) in net assets:
From operations:
<S> <C> <C>
Net investment income ......................... $ 244,844 $ 481,934
Net realized gain (loss) on
investments .................................. 1,060,975 908,600
Net realized gain (loss) from
foreign currency transactions ................
Net unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies ........ (109,851) 3,699,707
------------ ------------
Net increase (decrease) in net assets resulting
from operations .............................. 1,195,968 5,090,241
Dividends to shareholders from
net investment income ......................... (244,844) (481,934)
Dividends to shareholders in
excess of net
investment income .............................
Distributions to shareholders
from capital gains ............................ (908,076)
Distributions to shareholders
in excess of capital gains .................... (215,784)
Returns of capital .............................
Increase (decrease) in net assets
derived from shareholder
transactions (Note E) ......................... 3,812,933 2,255,684
------------ ------------
Net increase (decrease) in
net assets ................................... 4,764,057 5,740,131
Net Assets:
Beginning of period ........................... 22,171,326 16,431,195
------------ ------------
End of period ................................. $ 26,935,383 $ 22,171,326
============ ============
Accumulated net
investment income ............................. $ 0 $ 0
============ ============
</TABLE>
(A) Commencement of operations on September 1, 1995.
See notes to financial statements.
20
<PAGE> 28
<TABLE>
<CAPTION>
CHUBB
GROWTH CHUBB CHUBB
CHUBB AND CAPITAL GLOBAL
TAX-EXEMPT INCOME APPRECIATION INCOME
FUND FUND FUND FUND
- ---------------------------- ---------------------------- ---------------------------- ----------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX SIX SIX PERIOD FROM SIX PERIOD FROM
MONTHS YEAR MONTHS YEAR MONTHS SEPT. 1, MONTHS SEPT. 1,
ENDED ENDED ENDED ENDED ENDED 1995 TO ENDED 1995 TO
JUNE DECEMBER JUNE DECEMBER JUNE DECEMBER JUNE DECEMBER
30, 1996 31, 1995 30, 1996 31, 1995 30, 1996 31, 1995(A) 30, 1996 31,1995(A)
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<C> <C> <C> <C> <C> <C> <C> <C>
$ 391,551 $ 769,800 $ 177,955 $ 297,612 $ 12,800 $ 5,709 $ 273,282 $ 119,880
26,312 9,393 1,910,071 1,290,658 17,002 3,429 (22,773) 12,320
14,261 (23,114)
(518,719) 1,383,807 254,343 5,697,972 233,870 22,417 (396,284) 277,819
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(100,856) 2,163,000 2,342,369 7,286,242 263,672 31,555 (131,514) 386,905
(391,551) (769,800) (297,589) (3) (5,709) (273,282) (119,880)
(29)
(12,148) (1,290,658) (3,429)
(14,278) (504,237)
(1,903)
1,000,758 (81,364) 2,928,567 5,273,078 1,868,138 1,573,837 953,632 10,438,566
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
508,351 1,285,410 5,270,936 10,464,933 2,131,807 1,596,254 548,836 10,705,562
15,259,349 13,973,939 29,144,161 18,679,228 1,596,254 0 10,705,562 0
- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 15,767,700 $ 15,259,349 $ 34,415,097 $ 29,144,161 $ 3,728,061 $ 1,596,254 $ 11,254,398 $ 10,705,562
============ ============ ============ ============ ============ ============ ============ ============
$ 0 $ 0 $ 177,955 $ 0 $ 12,797 $ 0 $ 0 $ 0
============ ============ ============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
21
<PAGE> 29
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
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 June 30, 1996, Chubb, and its wholly-owned
subsidiaries, owned:
<TABLE>
<CAPTION>
JUNE 30, 1996 % OF
SHARES OWNED SHARES
------------- ------
<S> <C> <C>
Chubb Money Market Fund ........ 1,663,160 18.50%
Chubb Government Securities Fund 221,529 17.04%
Chubb Total Return Fund ........ 17,261 1.06%
Chubb Tax-Exempt Fund .......... 183,686 13.92%
Chubb Growth and Income Fund ... 16,239 0.94%
Chubb Capital Appreciation Fund 107,610 33.08%
Chubb Global Income Fund ....... 1,052,631 91.97%
</TABLE>
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> 30
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
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 arise from changes in the value
of assets and liabilities resulting from fluctuations in exchange rates.
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 June 30, 1996, the Chubb 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 06/30/96 Depreciation
- ------------------ --------------- --------------- -------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Japanese yen 12/20/96 99,070,219 $934,175 $925,157 $ 9,018
-------- -------- -------
<CAPTION>
U.S. Dollar
Foreign Currency Contracts to Value at Net Unrealized
Sale Contracts Settlement Date Deliver Cost 06/30/96 Depreciation
- ------------------ --------------- --------------- -------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Belgium franc 12/20/96 6,703,724 $ 214,588 $ 216,388 $ 1,800
French franc 12/20/96 1,793,856 347,498 351,495 3,997
German mark 12/20/96 589,913 388,663 391,793 3,130
Italian lira 12/20/96 512,657,501 328,463 329,741 1,278
Netherlands guilder 12/20/96 1,091,449 643,239 647,554 4,315
Spanish peseta 12/20/96 18,727,367 144,529 145,105 576
Great British pound 12/20/96 356,558 547,423 551,728 4,305
---------- ---------- -------
$2,614,403 $2,633,804 $19,401
========== ========== =======
</TABLE>
23
<PAGE> 31
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
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 June 30, 1996 for Federal income tax
purposes is the same as for financial reporting purposes. As of June 30, 1996,
gross unrealized gains and losses were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAIN (LOSS)
----------- ----------- -----------
<S> <C> <C> <C>
Chubb Government Securities Fund...... $ 86,359 $ 242,573 $ 156,214
Chubb Total Return Fund .............. 3,586,880 546,273 3,040,607
Chubb Tax-Exempt Fund ................ 606,253 126,839 479,414
Chubb Growth and Income Fund ......... 6,202,886 769,586 5,433,300
Chubb Capital Appreciation Fund ...... 308,993 52,706 256,287
Chubb Global Income Fund ............. 183,887 269,470 (85,583)
</TABLE>
As of June 30, 1996, the Chubb Global Income Fund has an unrealized foreign
currency loss of $32,882.
24
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
NOTE C--INVESTMENTS--(Continued)
Purchases and sales of investment securities for the period ended June 30, 1996,
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 .............. $17,250,667 $16,912,038
Chubb Total Return Fund ....................... 5,042,431 3,257,941
Chubb Tax-Exempt Fund ......................... 1,415,942 730,335
Chubb Growth and Income Fund .................. 8,897,118 6,589,181
Chubb Capital Appreciation Fund ............... 2,198,356 184,403
Chubb Global Income Fund ...................... 4,116,187 1,029,043
</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, during 1995, 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 June 30, 1996, the Distributor
received $533,016 in sales loads of which $423,299 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 the Chubb Money Market Fund and .50% per
25
<PAGE> 33
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
NOTE D--MANAGEMENT AGREEMENTS AND EXPENSES--(Continued)
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 June 30, 1996, payments were made by the Company to the Distributor under
the plan of distribution in the amount of $122,315.
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 June
30, 1996, 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 Chubb Capital
Appreciation Fund, and 1.75% of the average daily net assets of the Chubb Global
Income Fund. For the period ended June 30, 1996, 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
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 5,768,456 $ 5,768,456 7,359,452 $ 7,359,452
Shares issued as reinvestment of
dividends......................... 192,580 192,580 356,904 356,904
Shares redeemed..................... (4,592,759) (4,592,759) (7,590,914) (7,590,914)
---------- ----------- ---------- -----------
Net increase.................... 1,368,277 $ 1,368,277 125,442 $ 125,442
========== =========== ========== ===========
</TABLE>
26
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
JUNE 30, 1996
NOTE E--SHAREHOLDERS' TRANSACTIONS--(Continued)
<TABLE>
<CAPTION>
CHUBB GOVERNMENT SECURITIES FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 313,740 $ 3,287,908 260,999 $ 2,694,700
Shares issued as reinvestment of
dividends......................... 30,381 317,299 64,593 670,221
Shares redeemed..................... (331,911) (3,472,428) (323,982) (3,364,598)
---------- ----------- ---------- -----------
Net increase.................... 12,210 $ 132,779 1,610 $ 323
========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB TOTAL RETURN FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 365,444 $ 5,956,753 251,919 $ 3,841,601
Shares issued as reinvestment of
dividends......................... 14,763 241,988 154,693 2,317,850
Shares redeemed..................... (146,798) (2,385,808) (259,566) (3,903,767)
---------- ----------- ---------- -----------
Net increase.................... 233,409 $ 3,812,933 147,046 $ 2,255,684
========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB TAX-EXEMPT FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 213,503 $ 2,588,007 271,827 $ 3,241,348
Shares issued as reinvestment of
dividends......................... 27,856 336,217 64,458 771,519
Shares redeemed..................... (159,393) (1,923,466) (343,636) (4,094,231)
---------- ----------- ---------- -----------
Net increase (decrease)......... 81,966 $ 1,000,758 (7,351) $ (81,364)
========== =========== ========== ===========
</TABLE>
27
<PAGE> 35
NOTES TO FINANCIAL STATEMENTS
CHUBB INVESTMENT FUNDS, INC.
June 30, 1996
NOTE E--SHAREHOLDERS' TRANSACTIONS--(Continued)
<TABLE>
<CAPTION>
CHUBB GROWTH AND INCOME FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 388,956 $ 7,494,807 360,343 $ 6,302,104
Shares issued as reinvestment of
dividends......................... 0 0 183,869 3,157,445
Shares redeemed..................... (235,919) (4,566,240) (239,731) (4,186,471)
---------- ----------- ---------- -----------
Net increase.................... 153,037 $ 2,928,567 304,481 $ 5,273,078
========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB CAPITAL APPRECIATION FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 176,402 $ 1,918,056 152,567 $ 1,564,589
Shares issued as reinvestment of
dividends......................... 0 0 913 9,484
Shares redeemed..................... (4,602) (49,918) (18) (236)
---------- ----------- ---------- -----------
Net increase.................... 171,800 $ 1,868,138 153,462 $ 1,573,837
========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
CHUBB GLOBAL INCOME FUND
---------------------------------------------------------------
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1996 DECEMBER 31, 1995
----------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 69,334 $ 690,213 1,037,138 $10,321,849
Shares issued as reinvestment of
dividends......................... 27,576 272,932 11,482 116,885
Shares redeemed..................... (949) (9,513) (17) (168)
---------- ----------- ---------- -----------
Net increase.................... 95,961 $ 953,632 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 June 30, 1996, 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> 36
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period (A):
<TABLE>
<CAPTION>
CHUBB MONEY MARKET FUND
--------------------------------------------------------------------------------------
(UNAUDITED)
SIX
MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
30, 1996 31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.025 0.050 0.034 0.025 0.030 0.052
Net gains and
losses on securities (both
realized and unrealized) .
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations ............... 0.025 0.050 0.034 0.025 0.030 0.052
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.025) (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 ........ (0.025) (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 $ 1.000
=========== =========== =========== =========== =========== ===========
Total Return (B) ............. 5.06% 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% 0.50%
Net investment income ...... 4.71% 5.05% 3.43% 2.48% 3.06% 5.25%
Portfolio Turnover Rate ...... N/A N/A N/A N/A N/A N/A
Net Assets, At End of Period $ 8,988,499 $ 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 period.
(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. Total returns
for periods of less than one year have not been annualized.
(C) All related party fees have been waived for the period and all other
expenses of the Fund have been assumed in part for 1996, 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
1.26% for the six months ended June 30, 1996, 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> 37
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB GOVERNMENT SECURITIES FUND
--------------------------------------------------------------------------------------
(UNAUDITED)
SIX
MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
30, 1996 31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 10.780 $ 9.750 $ 10.710 $ 10.700 $ 11.160 $ 10.360
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.300 0.636 0.607 0.770 0.766 0.750
Net gains and
losses on securities (both
realized and unrealized) . (0.470) 1.030 (0.960) 0.199 0.021 0.838
------------ ------------ ------------ ------------ ------------ -----------
Total from investment
operations ............... (0.170) 1.666 (0.353) 0.969 0.787 1.588
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.300) (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 ........ (0.300) (0.636) (0.607) (0.959) (1.247) (0.788)
------------ ------------ ------------ ------------ ------------ -----------
Net asset value, end of period $ 10.310 $ 10.780 $ 9.750 $ 10.710 $ 10.700 $ 11.160
============ ============ ============ ============ ============ ===========
Total Return (A) ............. 4.08% 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% 1.00%
Net investment income ...... 5.81% 6.16% 5.96% 7.04% 6.94% 7.12%
Portfolio Turnover Rate ...... 128.52% 276.56% 113.36% 197.08% 310.29% 26.96%
Net Assets, At End of Period . $ 13,402,994 $ 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. Total returns for periods of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived for
1996,1995, 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 1.64% for the six
months ended June 30, 1996, 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> 38
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB TOTAL RETURN FUND
--------------------------------------------------------------------------------------
(UNAUDITED)
SIX
MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
30, 1996 31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 15.960 $ 13.230 $ 15.010 $ 13.890 $ 13.850 $ 11.270
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.162 0.373 0.373 0.405 0.382 0.387
Net gains and
losses on securities (both
realized and unrealized) . 0.640 3.586 (0.994) 1.529 0.577 2.870
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations ............... 0.802 3.959 (0.621) 1.934 0.959 3.257
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.162) (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 ........ (0.162) (1.229) (1.159) (0.814) (0.919) (0.677)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 16.600 $ 15.960 $ 13.230 $ 15.010 $ 13.890 $ 13.850
============ =========== =========== =========== =========== ===========
Total Return (A) ............. 15.42% 30.13% (4.21%) 14.03% 7.11% 29.23%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ............... 1.25% 1.08% 1.00% 1.00% 1.00% 1.00%
Net investment income ...... 2.04% 2.45% 2.66% 2.83% 2.97% 3.26%
Portfolio Turnover Rate ...... 14.22% 57.62% 37.53% 66.15% 73.89% 106.90%
Average Commission Rate Paid . $ 0.0700
Net Assets, At End of Period $26,935,383 $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. Total returns for periods of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived for 1996,
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 1.65% for the six months
ended June 30, 1996, 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> 39
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBBTAX-EXEMPT FUND
--------------------------------------------------------------------------------------
(UNAUDITED)
SIX
MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
30, 1996 31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 12.330 $ 11.220 $ 12.580 $ 11.740 $ 11.380 $ 10.880
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.303 0.621 0.618 0.583 0.619 0.634
Net gains and
losses on securities (both
realized and unrealized) .. (0.380) 1.132 (1.360) 0.850 0.401 0.500
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations ............... (0.077) 1.753 (0.742) 1.433 1.020 1.134
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ........ (0.303) (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 ........ (0.303) (0.643) (0.618) (0.593) (0.660) (0.634)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 11.950 $ 12.330 $ 11.220 $ 12.580 $ 11.740 $ 11.380
=========== =========== =========== =========== =========== ===========
Total Return (A) ............. 5.59% 15.88% (5.97%) 12.42% 9.19% 10.71%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ............... 1.25% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income ...... 5.03% 5.20% 5.21% 4.81% 5.40% 5.80%
Portfolio Turnover Rate ...... 4.87% 7.39% 8.37% 1.55% 17.11% 4.41%
Net Assets, At End of Period . $15,767,700 $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. Total returns for periods 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,
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% for the six months
ended June 30, 1996, 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.
32
See notes to financial statements.
32
<PAGE> 40
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB GROWTH AND INCOME FUND
--------------------------------------------------------------------------------------
(UNAUDITED)
SIX
MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
30, 1996 31, 1995 31, 1994 31, 1993 31, 1992 31, 1991
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ..................... $ 18.580 $ 14.770 $ 16.700 $ 15.140 $ 14.830 $ 11.950
INCOME FROM INVESTMENT
OPERATIONS
Net investment income ...... 0.103 0.204 0.247 0.277 0.214 0.243
Net gains and
losses on securities (both
realized and unrealized) . 1.307 5.042 (0.954) 2.039 0.794 3.756
------------ ----------- ----------- ----------- ----------- ------------
Total from investment
operations ............... 1.410 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 ........ 0.000 (1.436) (1.223) (0.756) (0.698) (1.119)
------------ ----------- ----------- ----------- ----------- ------------
Net asset value, end of period $ 19.990 $ 18.580 $ 14.770 $ 16.700 $ 15.140 $ 14.830
============ =========== =========== =========== =========== ============
Total Return (A) ............. 19.31% 35.52% (4.26%) 15.29% 6.84% 33.48%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ............... 1.25% 1.08% 1.00% 1.00% 1.00% 1.00%
Net investment income ...... 1.11% 1.20% 1.66% 2.04% 1.82% 2.34%
Portfolio Turnover Rate ...... 21.18% 37.59% 46.17% 81.96% 87.87% 152.56%
Average Commission Rate Paid . $ 0.0700
Net Assets, At End of Period $ 34,415,097 $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. Total returns for periods of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived for 1996,
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 1.64% for the six months
ended June 30, 1996, 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> 41
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB CAPITAL APPRECIATION FUND
-------------------------------------
(UNAUDITED)
SIX PERIOD FROM
MONTHS SEPTEMBER 1,
ENDED 1995 THROUGH
JUNE DECEMBER
30, 1996 31, 1995
------------ ------------
<S> <C> <C>
Net asset value, beginning of
period ............................. $ 10.400 $ 10.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income .............. 0.074 0.037
Net gains and
losses on securities (both
realized and unrealized) ......... 0.986 0.422
------------ -----------
Total from investment
operations ....................... 1.060 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 ................ 0.000 (0.059)
------------ -----------
Net asset value, end of period........ $ 11.460 $ 10.400
============ ===========
Total Return (A) ..................... 10.19% 4.60%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ....................... 1.25% 1.25%
Net investment income .............. 1.00% 1.38%
Portfolio Turnover Rate .............. 2.73% 2.73%
Average Commission Rate Paid ......... $ 0.0700
Net Assets, At End of Period ......... $ 3,728,061 $ 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 returns for periods 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 1996 and 1995.
Had the fees not been waived and expenses not been assumed, the ratios of
expenses to average net assets would have been 2.02% for the six months
ended June 30, 1996 and 2.50% in 1995, pursuant to the most restrictive
state limitation.
See notes to financial statements.
34
<PAGE> 42
CHUBB INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS-(Continued)
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
CHUBB GLOBAL INCOME FUND
-------------------------------------
(UNAUDITED)
SIX PERIOD FROM
MONTHS SEPTEMBER 1,
ENDED 1995 THROUGH
JUNE DECEMBER
30, 1996 31, 1995
------------ ------------
<S> <C> <C>
Net asset value, beginning of
period ............................. $ 10.210 $ 10.000
INCOME FROM INVESTMENT
OPERATIONS
Net investment income .............. 0.248 0.116
Net gains and
losses on securities (both
realized and unrealized) ......... (0.380) 0.210
----------- -----------
Total from investment
operations ....................... (0.132) 0.326
LESS DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ................ (0.248) (0.116)
Dividends in excess of
net investment income ............
Distributions from capital
gains ............................
Distributions in excess of
capital gains ....................
Returns of capital .................
----------- -----------
Total distributions ................ (0.248) (0.116)
----------- -----------
Net asset value, end of period........ $ 9.830 $ 10.210
=========== ===========
Total Return (A) ..................... (1.28)% 3.27%
Ratios to Average Net Assets:
(Annualized)
Expenses (B) ....................... 1.75% 1.75%
Net investment income .............. 5.03% 4.48%
Portfolio Turnover Rate .............. 10.16% 14.16%
Net Assets, At End of Period ......... $11,254,398 $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 returns for periods of less than one year have
not been annualized.
(B) A portion of all related party fees of the Fund have been waived for 1996
and 1995. Had the fees not been waived and expenses not been assumed, the
ratios of expenses to average net assets would have been 1.94% in 1996 and
2.14% in 1995, pursuant to the most restrictive state limitation. 35
See notes to financial statements.
35
<PAGE> 43
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<PAGE> 44
[This page intentionally left blank]
<PAGE> 45
[This page intentionally left blank]
<PAGE> 46
CHUBB
INVESTMENT
FUNDS
One Granite Place
PO Box 515
Concord, NH 03302
Form 3-5771 Ed. 8/96
