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<PAGE>
AHA INVESTMENT FUNDS, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
AS OF DECEMBER 31, 1995
<PAGE>
CONTENTS
- -------------------------------------------------------------------------------
PAGE
Portfolio of Investments 1
Full Maturity Fixed Income Portfolio
Limited Maturity Fixed Income Portfolio
Diversified Equity Portfolio
Balanced Portfolio
Financial Statements 36
Notes to Financial Statements 40
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
LONG-TERM OBLIGATIONS 105.3% MARKET VALUE
--------------------- ------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 67.2%
--------------------------------------
<S> <C> <C>
United States Treasury Bonds Stripped
$ 1,300,000 0.000% 02/15/19 $ 312,632
4,200,000 0.000% 02/15/20 949,640
905,000 0.000% 08/15/20 198,416
United States Treasury Bonds
305,000 8.875% 02/15/19 411,559
682,000 7.250% 08/15/22 789,841
2,665,000 6.250% 08/15/23 2,739,953
620,000 7.625% 02/15/25 757,756
195,000 6.875% 08/15/25 220,045
United States Treasury Notes
1,570,000 6.625% 03/31/97 1,597,475
1,680,000 5.625% 10/31/97 1,693,126
325,000 5.250% 07/31/98 325,203
6,276,000 5.125% 11/30/98 6,254,422
2,950,000 7.750% 12/31/99 3,203,514
1,730,000 6.250% 08/31/00 1,791,089
729,000 8.500% 11/15/00 826,048
156,000 6.250% 02/15/03 162,874
695,000 5.750% 08/15/03 703,688
410,000 5.875% 02/15/04 418,456
277,000 7.250% 08/15/04 308,163
335,000 7.875% 11/15/04 388,076
475,000 6.500% 05/15/05 506,320
1,685,000 6.500% 08/15/05 1,795,578
Federal Home Loan Mortgage Corporation
128,197 10.500% 01/01/10 Series 16-0098 140,626
22,255 9.000% 09/01/19 Series 53-8227 23,327
570,000 6.500% 03/01/24 564,478
4,400,000 7.000% 01/01/26 4,444,000
500,000 7.500% 01/01/26 513,281
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
1
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (CONTINUED)
--------------------------------------------------
Federal National Mortgage Association
(mortgage-backed securities)
<S> <C> <C>
$ 185,000 8.400% 10/25/04 $ 199,286
855,000 6.500% 03/01/24 845,916
997,387 7.500% 09/01/25 1,022,940
Government National Mortgage Association
(mortgage-backed securities)
196,726 6.500% 01/15/23 195,919
257,098 6.500% 01/15/24 255,661
870,617 7.000% 06/20/25 892,383
-------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 35,451,691
ASSET BACKED OBLIGATIONS 6.9%
- ------------------------
Advanta Credit Card Master Trust
675,000 6.050% 08/01/03 Series 1995-F 686,299
First USA Credit Card Trust
300,000 6.240% 10/15/04 Series 1995-2 300,645
Ford Motor Credit Company
126,239 4.300% 07/15/98 Series 1993-B 125,481
General Motors Acceptance Corporation Grantor Trust
9,226 5.550% 05/15/97 Series 1992-D 9,220
MBNA Credit Card Master Trust
300,000 6.208% 04/15/05 Series 1995-J 300,126
NationsBank Auto Grantor
530,351 5.850% 06/15/02 Series 1995-A 533,406
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
2
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
ASSET BACKED OBLIGATIONS (CONTINUED)
------------------------------------
<S> <C> <C>
Resolution Trust Corporation
$ 708,369 6.622% 09/25/21 Series 1992-9 $ 686,222
500,020 7.197% 06/25/24 493,770
Standard Credit Card Trust Series 1993-2
65,000 8.250% 11/07/01 72,021
250,000 5.950% 10/07/04 249,827
185,000 7.250% 04/07/06 199,968
-------
TOTAL ASSET BACKED OBLIGATIONS 3,656,985
CORPORATE OBLIGATIONS 31.2%
---------------------
AEROSPACE & DEFENSE 1.1%
-------------------
United Airlines Corporation
425,000 11.210% 05/01/14 566,237
BANKS 7.3%
-----
Banque Paribas
400,000 6.875% 03/01/09 400,500
Citicorp
155,000 8.000% 02/01/03 171,281
First National Bank of Boston
600,000 8.375% 12/15/02 673,986
Fleet Norstar Bank
180,000 7.650% 03/01/97 183,880
Mellon Financial Company
600,000 6.300% 06/01/20 610,948
NationsBank Corporation
700,000 7.250% 10/15/25 728,423
National Bank of Detroit
220,000 8.250% 11/01/24 258,123
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
3
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
BANKS (CONTINUED)
-----------------
<S> <C> <C>
Wachovia Bank
$ 300,000 4.500% 02/16/96 $ 299,789
500,000 6.800% 06/01/05 523,482
-----------------
3,850,412
COMMUNICATION 1.0%
-------------
Time Warner Entertainment
500,000 8.375% 07/15/33 546,926
ELECTRONICS 1.3%
-----------
Hydro-Quebec
500,000 8.400% 01/15/22 580,620
70,000 9.500% 04/30/27 92,206
-----------------
672,826
FINANCIAL 9.0%
---------
BHP Financial USA
275,000 7.875% 12/01/02 299,899
Beneficial Corporation
700,000 7.450% 01/19/96 700,938
Chrysler Financial Corporation
750,000 7.570% 03/17/97 766,522
Equitable Companies
400,000 9.000% 12/15/04 458,618
General Motors Acceptance Corporation
220,000 8.625% 01/18/01 244,945
200,000 7.400% 09/01/25 212,659
International Lease Financial Company
600,000 6.250% 10/15/00 609,774
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
4
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
FINANCIAL (CONTINUED)
---------------------
<S> <C> <C>
ITT Financial Corporation
$ 140,000 6.750% 11/15/05 $ 143,493
200,000 7.375% 11/15/15 206,307
KFW International
215,000 8.200% 06/01/06 247,990
Long Island Lighting Financial
400,000 8.200% 06/01/06 425,070
Smith Barney Holding Incorporated
450,000 6.500% 10/15/02 456,268
-------
4,772,483
HEALTH CARE 0.7%
-----------
Schering Plough Corporation
400,000 0.000% 12/02/96 effective yield 6.75% 380,606
METAL & MINERAL 1.2%
---------------
Noranda Incorporated
600,000 7.000% 07/15/05 623,970
PAPER 0.3%
-----
Westvaco Corporation
120,000 8.300% 08/01/22 134,214
RETAIL STORES 0.4%
-------------
May Department Stores
165,000 8.375% 08/01/24 187,467
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
5
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
TELECOMMUNICATION 1.8%
-----------------
<S> <C> <C>
TCI Communications Incorporated
$ 400,000 8.750% 08/01/15 $ 441,473
US West Communication
500,000 7.125% 11/15/43 515,044
-----------------
956,517
UTILITIES 1.9%
---------
Idaho Power Company
125,000 8.000% 03/15/04 139,033
KN Energy Incorporated
200,000 9.625% 08/01/21 239,363
Niagara Mohawk Power Company
400,000 7.750% 05/15/06 378,447
Puget Sound Power & Light
250,000 7.700% 12/10/01 272,059
-------
1,028,902
MISCELLANEOUS 2.9%
-------------
Lubrizol Corporation
400,000 7.250% 06/15/25 440,016
Manitoba Province CDA
325,000 6.125% 01/19/04 328,065
News American Holdings
400,000 8.875% 04/26/23 477,185
New Zealand
225,000 8.750% 12/15/06 275,755
-------
1,521,021
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
6
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
EURO BONDS 2.3%
----------
<S> <C> <C>
International Bank Recon & Development
$ 180,000 9.750% 01/23/16 $ 243,900
285,000 9.250% 07/15/17 379,971
Norddeutsche
300,000 6.875% 03/10/03 312,180
Quebec Province
30,000 7.150% 02/09/24 30,314
Westdeutsche Bank
240,000 6.750% 06/15/05 253,008
-------
1,219,373
TOTAL CORPORATE OBLIGATIONS 16,460,954
----------
TOTAL LONG-TERM OBLIGATIONS (COST $53,298,761) 55,569,630
----------
SHORT-TERM OBLIGATIONS 5.4%
----------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 0.4%
--------------------------------------
Federal Farm Credit Bank
30,000 5.650% 01/04/96 29,986
Federal National Mortgage Association
100,000 5.670% 01/04/96 99,953
75,000 5.670% 01/19/96 74,793
------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 204,732
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
7
<PAGE>
FULL MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
SHORT-TERM OBLIGATIONS (CONTINUED)
----------------------------------
DEMAND NOTES 5.0%
------------
<S> <C> <C>
Corporate Receivable Corporation
$ 1,000,000 5.750% 01/17/96 $ 997,444
General Mills Demand Note
266 5.490% 12/31/31 266
Southwestern Bell Demand Note
598,230 5.719% 12/31/31 598,231
Pitney Bowes Demand Note
407,938 5.487% 12/31/31 407,938
Wisconsin Electric Demand Note
637,718 5.528% 12/31/31 637,718
-------
TOTAL DEMAND NOTES 2,641,597
TOTAL SHORT-TERM OBLIGATIONS
(AMORTIZED COST $2,846,329) 2,846,329
TOTAL INVESTMENTS
(COST BASIS $56,145,090) 110.7% 58,415,959
CASH AND OTHER ASSETS, LESS
LIABILITIES -10.7% (5,625,402)
----------
TOTAL NET ASSETS 100.0% $ 52,790,557
----------
----------
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
8
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
LONG-TERM OBLIGATIONS 92.7% MARKET VALUE
--------------------- ------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 51.0%
--------------------------------------
<S> <C> <C>
United States Treasury Notes
$ 2,860,000 7.500% 12/31/96 $ 2,924,350
210,000 7.500% 01/31/97 215,119
200,000 6.875% 03/31/97 204,062
3,220,000 6.500% 05/15/97 3,275,342
1,230,000 5.625% 06/30/97 1,238,456
3,205,000 6.500% 08/15/97 3,270,099
3,140,000 6.000% 08/31/97 3,179,250
5,155,000 5.500% 09/30/97 5,182,382
2,240,000 5.625% 10/31/97 2,257,501
5,097,000 7.375% 11/15/97 5,291,323
7,105,000 5.625% 01/31/98 7,164,943
5,030,000 7.250% 02/15/98 5,231,200
1,800,000 6.125% 05/15/98 1,836,000
1,000,000 5.375% 05/31/98 1,003,437
2,708,000 5.125% 06/30/98 2,702,077
4,000,000 5.875% 08/15/98 4,063,747
3,905,000 5.125% 11/30/98 3,891,573
8,815,000 6.500% 04/30/99 9,140,053
1,555,000 7.750% 01/31/00 1,690,091
7,755,000 6.750% 04/30/00 8,164,556
15,745,000 6.250% 05/31/00 16,286,234
Federal Home Loan Bank Corporation
900,000 5.945% 09/05/97 909,337
Federal Home Loan Mortgage Corporation
227,784 6.225% 05/15/97 Variable Rate CMO 228,295
Federal National Mortgage Association
(mortgage-backed securities)
1,960,000 5.650% 10/20/97 1,973,190
Government National Mortgage Association
(mortgage-backed securities)
248,586 10.000% 08/15/16 274,486
214,523 10.000% 09/15/16 236,875
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
9
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (CONTINUED)
--------------------------------------------------
Government National Mortgage Association (Continued)
(mortgage-backed securities)
<S> <C>
$ 9,804 9.500% 11/15/16 $ 10,582
70,773 9.500% 05/15/18 76,274
1,852 9.500% 06/15/18 1,996
47,244 9.500% 07/15/18 50,917
16,800 10.000% 10/15/18 18,536
219,197 10.000% 11/15/18 241,843
88,294 10.000% 03/15/19 97,367
18,661 10.000% 04/15/19 20,579
12,345 9.500% 09/15/19 13,296
10,899 9.500% 04/15/20 11,731
389,542 9.500% 05/15/20 419,295
342,504 9.500% 06/15/20 368,665
108,245 9.500% 08/15/20 116,513
32,932 10.000% 08/15/20 36,295
6,456 9.500% 09/15/20 6,949
27,433 9.500% 10/15/20 29,528
725,516 9.500% 11/15/20 780,931
165,224 9.500% 03/15/21 177,748
11,613 9.500% 04/15/21 12,493
111,286 9.500% 06/15/21 119,721
-------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 94,445,237
Asset Backed Obligations 13.8%
Advanta Credit Card Master Trust
2,000,000 6.050% 08/01/03 Series 1995-F 2,033,480
Case Equipment
3,101,517 7.300% 03/15/02 3,177,009
Chase Manhattan Grantor
393,943 4.200% 04/15/99 Series 1993-A 392,332
2,691,904 6.000% 09/17/01 Series 1995-A 2,712,147
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
10
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
ASSET BACKED OBLIGATIONS (CONTINUED)
------------------------------------
<S> <C>
Daimler Benz Auto Receivable
$ 826,633 3.900% 10/15/98 Series 1993-A $ 822,268
881,291 5.950% 12/15/00 Series 1994-A 883,529
Discover Credit Card Trust Series 1992-A
1,150,000 6.250% 08/16/00 1,168,009
Ford Credit Grantor Trust
2,032,936 5.900% 10/15/00 Series 1995-B 2,046,882
General Motors Acceptance Corporation Grantor Trust
1,000,000 7.900% 05/01/97 1,029,596
1,000,000 7.500% 03/16/98 1,038,107
Green Tree Financial Corporation
2,026,200 5.600% 04/15/19 2,024,194
Honda Auto Receivable
78,129 4.900% 06/15/98 Series 1992-A 78,126
Premier Auto Trust
1,452,376 4.900% 10/15/98 Series 1993-2 1,448,368
5,000,000 6.350% 05/02/00 Series 1994-2 5,058,915
USAA Auto Loan Grantor Series 1994-1
1,061,664 5.000% 11/15/99 1,058,075
Western Financial Grantor Trust
505,436 6.050% 11/01/00 509,732
-------------
TOTAL ASSET BACKED OBLIGATIONS 25,480,769
CORPORATE OBLIGATIONS 27.9%
BANKS 6.4%
BankAmerica Corporation
2,000,000 5.750% 03/18/98 2,003,188
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
11
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------
BANKS (CONTINUED)
-----------------
<S> <C>
Mellon Financial Company
$ 675,000 6.500% 12/01/97 $ 685,435
National Australia Bank
3,000,000 9.700% 10/15/98 3,299,223
National Bank of Detroit
800,000 6.500% 05/27/97 811,186
Society Bank
5,000,000 6.875% 10/15/96 5,050,210
---------
11,849,242
CHEMICALS 1.3%
---------
Arco Chemical Company
2,000,000 9.900% 11/01/00 2,349,946
COMMUNICATION 5.0%
-------------
AT&T Capital
4,000,000 6.990% 10/12/96 4,043,732
650,000 6.380% 08/28/98 661,873
International Business Machine Company
1,500,000 6.375% 11/01/97 1,524,945
Xerox Corporation
3,000,000 6.840% 06/01/00 3,111,705
---------
9,342,255
FINANCIAL 14.4%
---------
American General Finance
1,050,000 7.850% 10/10/97 1,091,193
810,000 8.500% 08/15/98 865,910
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
12
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
CORPORATE OBLIGATIONS
---------------------
FINANCIAL (CONTINUED)
---------------------
<S> <C>
Associates Corporation
$ 830,000 8.375% 01/15/98 $ 874,928
1,400,000 6.375% 08/15/98 1,427,522
Chrysler Financial Corporation
4,000,000 6.000% 04/15/96 4,003,415
Fleet Financial Group
2,125,000 6.000% 10/26/98 2,147,276
Ford Motor Credit Company
500,000 7.125% 12/01/97 514,408
1,500,000 8.000% 12/01/97 1,567,564
General Electric Capital Corporation
800,000 6.125% 04/15/97 808,175
1,000,000 7.840% 02/05/98 1,048,392
2,400,000 8.100% 01/26/99 2,574,866
Household Financial Corporation
840,000 6.700% 08/08/97 854,294
International Lease Financial Corporation
2,000,000 6.375% 11/01/96 2,013,028
1,900,000 7.150% 04/20/98 1,963,158
Norwest Financial Corporation
1,000,000 8.500% 08/15/98 1,071,031
850,000 7.700% 11/15/97 884,390
Olympia Financial
936,808 6.200% 01/15/02 948,509
Transamerica Financial Corporation
1,000,000 7.180% 07/29/98 1,036,734
</TABLE>
The accompanying notes to the financial statements are an integral part of this]
schedule.
13
<PAGE>
LIMITED MATURITY FIXED INCOME PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET VALUE
--------- ------------
LONG-TERM OBLIGATIONS (CONTINUED)
---------------------------------
CORPORATE OBLIGATIONS
---------------------
FINANCIAL (CONTINUED)
---------------------
<S> <C>
Toyota Motor Credit Note
$ 1,060,000 6.800% 04/15/98 $ 1,088,372
---------
26,783,165
FOOD, BEVERAGES & TOBACCO 0.8%
-------------------------
PepsiCo Incorporated
1,435,000 5.000% 02/24/97 1,430,461
---------
TOTAL CORPORATE OBLIGATIONS 51,755,069
----------
TOTAL LONG-TERM OBLIGATIONS
(COST $168,996,128) 171,681,075
-----------
SHORT-TERM OBLIGATIONS 6.2%
----------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 3.2%
--------------------------------------
Federal Home Loan Mortgage Discount Note
1,525,000 5.560% 01/08/96 1,523,351
4,450,000 5.660% 01/16/96 4,439,505
---------
5,962,856
COMMERCIAL PAPER 3.0%
----------------
Deutsche Bank
5,000,000 7.498% 01/21/97 5,025,417
Phillip Morris Company
545,000 5.800% 07/03/95 544,913
-------
TOTAL COMMERCIAL PAPERS 5,570,330
---------
TOTAL SHORT-TERM OBLIGATIONS
(AMORTIZED COST $11,533,186) 11,533,186
----------
TOTAL INVESTMENTS
(COST BASIS $180,529,314) 98.9% 183,214,261
CASH AND OTHER ASSETS, LESS
LIABILITIES 1.1% 2,083,854
---------
TOTAL NET ASSETS 100.0% 185,298,115
-----------
-----------
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
14
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES 99.7% MARKET VALUE
- -------- ------------
AEROSPACE & DEFENSE 1.6%
- -------------------
<S> <C> <C>
2,600 AlliedSignal Incorporated $ 123,500
100 General Dynamics Corporation 5,913
5,300 Lockheed Martin Corporation 418,700
1,500 Rockwell International Corporation 79,313
1,100 Textron Incorporated 74,250
1,200 United Technologies Corporation 113,850
-------
815,526
APPAREL 0.1%
- -------
500 Laidlaw Incorporated 5,125
AUTOMOTIVE 4.3%
- ----------
3,800 Chrysler Corporation 210,425
4,500 Echlin Corporation 164,250
276,020 Ford Motor Company 800,400
2,500 General Motors Corporation 132,188
29,000 Harley Davidson Company 833,750
1,000 PACCAR Incorporated 42,125
------
2,183,138
BANKS 5.7%
- -----
1,600 Banc One Corporation 60,400
5,600 Bank of Boston Corporation 259,000
1,000 Bank of New York Corporation 48,750
1,500 BankAmerica Corporation 97,125
12,600 Barnett Banks Incorporated 743,400
7,400 Chase Manhattan Corporation 448,625
3,300 Chemical Banking Corporation 193,875
11,000 Citicorp 739,750
600 First Union Corporation 33,375
1,500 J.P. Morgan & Company 120,375
300 Mellon Bank Corporation 16,125
1,200 Nations Bank Corporation 83,550
------
2,844,350
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
15
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
BASIC INDUSTRIES 1.3%
- ----------------
<S> <C> <C>
2,700 Aluminum Company of America $ 142,763
1,100 Asarco Incorporated 35,200
9,500 Crane Company 350,313
1,400 Newmont Mining Corporation 63,350
200 Parker Hannifin Corporation 6,850
600 Phelps Dodge Corporation 37,350
400 Reynolds Metals Company 22,650
200 Timken Company 7,650
-----------
666,126
CHEMICALS 5.3%
- ---------
800 Air Products & Chemicals Incorporated 42,200
11,800 E.I. duPont de Nemours and Company 824,525
2,700 Eastman Chemical Company 169,088
1,900 Grace WR & Company 112,338
20,000 Minerals Technologies, Incorporated 730,000
37,500 Osmonics Incorporated * 764,063
1,100 Union Carbide Corporation 41,250
-----------
2,683,464
COMMUNICATION 2.5%
- -------------
12,400 Dun & Bradstreet Corporation 802,900
200 Knight Ridder Incorporated 12,500
1,600 McGraw-Hill Incorporated 139,400
3,900 Tribune Company 238,388
1,800 Unicom Corporation 58,950
-----------
1,252,138
COMPUTERS & OFFICE EQUIPMENT 6.9%
- ---------------------------
35,300 Amdahl Corporation * 300,050
18,500 Astra ADR 735,375
400 Autodesk Incorporated 13,700
1,000 Ceridian Corporation 41,250
1,700 Compaq Computer Corporation * 81,600
4,100 Computer Associates International Incorporated 233,188
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
16
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
COMPUTERS & OFFICE EQUIPMENT (CONTINUED)
- ----------------------------------------
<S> <C> <C>
1,400 Intel Corporation $ 79,450
3,300 International Business Machines Corporation 302,775
1,300 Pitney Bowes Incorporated 61,100
9,000 Sun Microsystems 410,625
67,500 Tandem Computer Incorporated * 717,188
9,000 Wallace Computer Services Incorporated 491,625
-------
3,467,926
CONGLOMERATES 0.1%
- -------------
1,200 Minnesota Mining & Manufacturing Company 79,500
CONSTRUCTION 2.2%
- ------------
3,400 Armstrong World Incorporated 210,800
1,700 Johnson Controls 116,875
25,000 Masco Corporation 784,375
-------
1,112,050
CONSUMER DURABLES 0.8%
- -----------------
5,900 Avery Dennison Corporation 295,738
1,500 Eastman Kodak 100,500
-------
396,238
CONSUMER NON-DURABLES 5.7%
- ---------------------
24,500 American Greetings Company 676,813
1,600 Avon Products Incorporated 120,600
14,300 Bandag Incorporated 773,988
5,200 B.F. Goodrich Company 354,250
2,700 Int'l Flavors & Fragrances Incorporated 129,600
45,000 Juno Lighting 720,000
1,200 Procter & Gamble Company 99,600
------
2,874,851
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
17
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- ------------------- ------------
ENERGY & RELATED 1.8%
- ----------------
<S> <C> <C>
4,600 Occidental Petroleum Corporation $ 98,325
57,000 Owens Illinois Incorporated* 826,500
-------
924,825
ENTERTAINMENT & LEISURE 0.3%
- -----------------------
4,200 Service Corporation International 184,800
ELECTRONICS 3.2%
- -----------
16,300 General Electric Company 1,173,600
100 Honeywell Incorporated 4,863
1,600 Micron Technology Incorporated 63,400
4,100 National Service Ind. Incorporated 132,738
2,000 Raytheon Company 94,500
3,200 Tektronix Incorporated 157,200
-------
1,626,301
FINANCIAL 1.6%
- ---------
4,900 Ahmanson H.F. & Company 129,850
6,100 American Express Company 252,388
600 Beneficial Corporation 27,975
6,300 Household International Incorporated 372,488
-------
782,701
FINANCIAL SERVICES 3.7%
- ------------------
7,100 Federal National Mortgage Association 881,288
15,000 Student Loan Corporation 510,000
7,200 Student Loan Marketing Association 474,300
-------
1,865,588
FOOD, BEVERAGES & TOBACCO 5.8%
- -------------------------
15,600 Anheuser-Busch Companies, Incorporated 1,043,250
12,300 Campbell Soup Company 738,000
5,400 Conagra Incorporated 222,750
5,700 Coors 126,113
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
18
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
FOOD, BEVERAGES & TOBACCO (CONTINUED)
- -------------------------------------
<S> <C> <C>
1,400 CPC International Incorporated $ 96,075
2,800 Fleming Companies Incorporated 57,750
9,700 Heinz (H.J.) Company 321,313
9,500 Sara Lee Corporation 302,813
-------
2,908,064
GOLD & PRECIOUS METAL 0.1%
- ---------------------
2,600 Placer Dome Incorporated 62,725
HEALTH CARE 8.0%
- -----------
2,100 American Home Products Corporation 203,700
18,900 Baxter International Incorporated 791,438
3,300 Becton Dickinson & Company 247,500
500 Bristol-Meyers/Squibb 42,938
2,200 Johnson & Johnson 188,375
9,000 Merck & Company 591,750
8,200 Pfizer Incorporated 516,600
31,400 Pharmacia Akitiebolag ADR 1,216,750
4,300 Schering Plough Corporation 235,425
-------
4,034,476
INSURANCE 3.9%
- ---------
2,200 AETNA Life & Casualty Company 152,350
4,801 Allstate Corporation 197,441
6,750 American International Group Incorporated 624,375
300 Jefferson Pilot Corporation 13,950
1,100 Lincoln National Corporation 59,125
12,000 Progressive Corporation Ohio 586,500
2,700 Safeco Corporation 93,150
1,700 St. Paul Companies Incorporated 94,563
1,500 Transamerica Corporation 109,313
1,200 USLife Corporation 35,850
------
1,966,617
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
19
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
PAPER & FOREST PRODUCT 2.2%
- ----------------------
<S> <C> <C>
59,000 Asia Pulp & Paper Company * $ 479,375
5,900 Federal Paperboard Company 306,063
300 Georgia Pacific Company 20,588
2,000 Kimberly Clark Company 165,500
3,100 Weyerhaeuser Company 134,075
-------
1,105,601
PETROLEUM 6.0%
- ---------
3,500 Amoco Corporation 251,563
1,600 Chevron Corporation 84,000
1,800 Cyprus Amax Mineral Company 47,025
1,700 Enron 64,813
8,300 Exxon Corporation 665,038
2,300 Mobil Corporation 257,600
5,600 Phillips Petroleum Company 191,100
1,600 Royal Dutch Petroleum Co. N.Y.-ADR 225,800
1,500 Sun Company 41,063
2,600 Texaco 204,100
5,900 USX Marathon Group 115,050
39,800 YPF S.A. ADR 860,675
-------
3,007,827
RAILROADS 2.3%
- ---------
3,400 Burlington Northern Incorporated 265,200
1,400 CSX Corporation 63,875
700 Conrail Incorporated 49,000
24,000 Trinity Industries 756,000
-------
1,134,075
RESTAURANTS 0.9%
- -----------
63,000 Ryans Family Steak Houses Incorporated * 441,000
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
20
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
RETAIL STORES 3.7%
- -------------
<S> <C> <C>
620 Bruno's Incorporated $ 6,510
1,400 Gap Incorporated 58,800
1,200 Giant Foods Incorporated 37,800
18,500 Kroger Company 693,750
2,400 Longs Drug Stores 114,900
2,000 May Department Stores 84,500
4,600 Mercantile Stores Incorporated 212,750
13,400 Sears Roebuck & Company 522,600
1,700 Supervalu Incorporated 53,550
400 Tandy Corporation 16,600
1,100 Walgreen Company 32,863
1,300 Winn-Dixie Stores Incorporated 47,938
------
1,882,561
SERVICES 1.7%
- --------
600 Briggs & Stratton Corporation 26,025
2,700 Browning Ferris Incorporated 79,650
34,500 COMSAT Corporation 642,563
1,000 John Deere & Company 35,250
1,000 Snap-On Incorporated 45,250
400 Whirlpool Corporation 21,300
------
850,038
TECHNOLOGY 9.3%
- ----------
6,800 EG&G 164,900
8,300 Harris Corporation 453,388
3,300 Hewlett-Packard Company 276,375
1,100 Loral Corporation 38,913
1,700 Motorola Incorporated 96,900
30,000 National Semiconductor * 667,500
23,000 Northern Telecom 989,000
2,100 Perkins-Elmer Corporation 79,275
9 Teledyne Incorporated Preferred 129
7,400 Texas Instruments 382,950
27,900 WMX Technologies Incorporated 833,513
5,000 Xerox Corporation 685,000
-------
4,667,843
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
21
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
TEXTILE & APPAREL 0.1%
- -----------------
<S> <C> <C>
500 Spring Industries $ 20,688
UTILITIES-ELECTRIC 2.0%
- ------------------
2,100 American Electric Power Company 85,050
800 Baltimore Gas & Electric Company 22,800
2,100 Carolina Power & Light Company 72,450
2,300 Central & Southwest Corporation 64,113
3,900 Detroit Edison Company 134,550
2,700 Entergy Corporation 78,975
15,000 Houston Industries 363,750
400 Northern States Power Company 19,650
300 Pacific Enterprises 8,475
3,500 Pacific Gas & Electric Company 99,313
500 People's Energy Corporation 15,875
1,000 Union Electric Company 41,750
------
1,006,751
UTILITIES-TELEPHONE 5.8%
- -------------------
18,500 Ameritech Corporation 1,091,500
3,500 Bell Atlantic Corporation 234,063
14,400 Bell South Corporation 626,400
12,800 GTE Corporation 563,200
5,400 SBC Communication Incorporated 310,500
2,100 Sprint Corporation 83,717
------
2,909,380
MISCELLANEOUS 0.8%
- -------------
50,000 Vans Incorporated 418,750
-------
TOTAL COMMON STOCK (COST 42,641,272) 50,181,043
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
22
<PAGE>
DIVERSIFIED EQUITY PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
SHORT-TERM OBLIGATIONS 0.1% MARKET VALUE
- ---------------------- ------------
DEMAND NOTES 0.1%
- ------------
<S> <C> <C>
Sara Lee
$ 57,476 5.467 12/31/31 $ 45,987
------
TOTAL SHORT-TERM OBLIGATIONS
(AMORTIZED COST $45,987) 45,987
------
TOTAL INVESTMENTS
(COST BASIS $42,687,25 99.8% 50,227,030
CASH AND OTHER ASSETS, LESS
LIABILITIES 0.2% 103,692
-------
TOTAL NET ASSETS 100.0% 50,330,722
----------
----------
</TABLE>
* Non-income producing stocks.
The accompanying notes to the financial statements are an integral part of this
schedule.
23
<PAGE>
BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES 73.3% MARKET VALUE
- --------
AEROSPACE & DEFENSE 1.3% ------------
- -------------------
<S> <C> <C> <C>
1,600 AMR Corporation * $ 118,800
2,100 Comair Holdings Incorporated 56,438
1,200 Delta Airlines 88,650
1,000 McDonnell Douglas Corporation 92,000
600 Northwest Airlines Corporation 30,600
1,000 United Technologies Incorporated 94,875
1,400 Webb Del Corporation 28,175
------
509,538
AUTOMOTIVE 3.3%
- ----------
20,000 Ford Motor Company 580,000
1,300 General Motors Corporation 68,738
21,300 Harley Davidson Company 612,375
1,600 Lear Seating Corporation * 46,400
------
1,307,513
BANKS 4.3%
- -----
1,900 Bank of Boston Corporation 87,875
10,000 Barnett Banks Incorporated 590,000
1,400 Chase Manhattan Corporation 84,875
10,900 Citicorp 733,025
700 Crestar Financial Corporation 41,388
300 First Interstate Bancorp 40,950
1,200 Long Island Bancorp Incorporated 31,650
1,700 MidAtlantic Corporation 111,563
-------
1,721,326
BASIC INDUSTRIES 0.9%
- ----------------
500 Applied Materials Incorporated * 19,688
2,000 Aluminum Company of America 105,750
2,600 Asarco Incorporated 83,200
3,100 Lennar Corporation 77,888
900 Reynolds Metals 50,963
1,000 USG Corporation 30,000
------
367,489
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
24
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
CHEMICALS 3.9%
- ---------
<S> <C> <C> <C>
1,500 Air Products & Chemicals Incorporated $ 79,125
700 Dow Chemical Company 49,263
9,200 E.I. duPont de Nemours and Company 642,850
900 Iowa Beef Processing 45,450
500 Olin Corporation 37,125
15,000 Minerals Technologies Incorporated 547,500
1,300 Mississippi Chemical Corporation 30,225
3,100 Praxair Incorporated 104,238
-------
1,535,776
COMMUNICATION 2.1%
- -------------
11,000 Dun & Bradstreet Corporation 712,250
1,300 Harcourt General Incorporated 54,438
1,700 Time Warner Incorporated 64,388
------
831,076
COMPUTERS & OFFICE EQUIPMENT 6.1%
- ----------------------------
15,000 Astra ADR 596,250
2,950 Bay Networks * 121,319
1,000 Ceridian Corporation 41,250
2,100 Compaq Computers Corporation * 100,800
2,050 Computer Associates 116,594
3,000 Computervision Corporation 46,125
900 CompUSA Incorporated * 28,013
600 Intel Corporation 34,050
1,700 International Business Machines Corporation 155,975
1,300 Softkey International Incorporated 30,063
2,100 Sun Microsystems 95,813
1,400 Symantec Corporation 32,550
55,000 Tandem Computer Incorporated * 584,375
8,000 Wallace Computer Services Incorporated 437,000
-------
2,420,177
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
25
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
CONSTRUCTION 1.8%
- ------------
<S> <C> <C> <C>
20,000 Masco Corporation $ 627,500
2,000 Owens Corning 89,750
------
717,250
CONSUMER NON-DURABLES 4.1%
- ---------------------
19,000 American Greetings Company 524,875
10,000 Bandag Incorporated 541,250
800 First Brands Corporation 38,100
34,300 Juno Lighting 548,800
-------
1,653,025
ELECTRONICS 3.6%
- -----------
2,100 Eaton Corporation 112,613
9,500 General Electric Company 684,000
2,000 Memc Electronic Materials 65,250
23,000 National Semiconductor * 511,750
500 Nellcor Puritan Bennett, Incorporated 29,000
1,000 Solectron Corporation 44,125
------
1,446,738
ENERGY & RELATED 3.2%
- ----------------
1,800 Apache Corporation 53,100
1,400 British Petroleum PLC ADR's 142,975
1,800 Cairn Energy USA 25,200
300 Chesapeake Energy Corporation 14,963
1,200 Ensco International Incorporated * 23,000
500 Kerr-McGee Company 31,750
4,600 Occidental Petroleum Corporation 98,325
3,400 Oryx Energy 45,475
50,300 Owens Illinois Incorporated * 729,350
800 Sonat Offshore Drilling Incorporated 35,800
1,900 Ultramar Corporation 48,925
1,400 Western Atlas Incorporated * 45,450
------
1,294,313
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
26
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
ENTERTAINMENT & LEISURE 0.6%
- -----------------------
<S> <C> <C> <C>
1,500 Mirage Resorts Incorporated $ 51,750
1,500 Patriot American Hospitality 38,625
1,082 Viacom Incorporated- Class B 51,260
1,500 Walt Disney Company 88,500
------
230,135
FINANCIAL 0.7%
- ---------
1,300 First USA Incorporated 57,688
4,400 Liberty Property Beneficial Trust 91,300
2,400 North American Mortgage Company 51,000
1,100 Travelers Group Incorporated 69,163
------
269,151
FINANCIAL SERVICES 4.3%
- ------------------
2,100 Dean Witter Discover Company 98,700
5,300 Federal National Mortgage Association 657,863
1,600 Green Tree Financial Corporation 42,200
2,375 Money Store Incorporated 37,109
800 Primark Corporation 24,000
10,000 Student Loan Corporation 340,000
7,000 Student Loan Marketing Association 461,125
2,300 WFS Financial Incorporated 44,850
------
1,705,847
FOOD, BEVERAGES & TOBACCO 2.5%
- -------------------------
1,300 CPC International Incorporated 89,213
9,000 Anheuser-Busch Companies, Incorporated 601,875
400 Castle & Cooke Incorporated 6,700
1,200 Dole Foods Company 42,000
2,200 Nabisco Holdings Corporation 71,775
700 Ralston Purina 43,663
2,700 Sara Lee Corporation 86,063
1,500 Seagrams LTD 51,938
------
993,227
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
27
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
HEALTH CARE 5.0%
- -----------
<S> <C> <C> <C>
1,400 American Home Products Corporation $ 135,800
18,400 Baxter International Incorporated 770,500
1,100 Elan Corporation ADS 53,488
1,745 Guidant Corporation 73,726
1,000 HealthCare COMPARE Corporation 43,500
1,000 Lilly Eli & Company 56,250
3,000 Ornda Healthcorp 69,750
1,400 Pfizer Incorporated 88,200
18,000 Pharmacia Akitiebolag ADR 697,500
-------
1,988,714
INSURANCE 4.0%
- ---------
1,500 AETNA Life & Casualty Company 103,875
1,410 Allstate Corporation 57,986
5,900 American International Group Incorporated 545,750
1,100 CIGNA Corporation 113,575
1,000 Potash Corporation 70,875
12,300 Progressive Corporation Ohio 601,163
2,900 Prudential Reinsurance Holdings 67,788
2,800 US F&G Corporation 47,250
------
1,608,262
PAPER & FOREST PRODUCTS 1.1%
- -----------------------
44,000 Asia Pulp & Paper Company * 357,500
900 Kimberly Clark Company 74,475
------
431,975
PETROLEUM 2.8%
- ---------
1,000 Diamond Offshore Drilling 33,750
2,100 Enron 50,400
800 Exxon Corporation 64,100
500 Mobil Corporation 56,000
1,500 Tenneco Incorporated 74,438
900 Texaco 70,650
35,000 YPF S.A. ADR 756,875
-------
1,106,213
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
28
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
RAILROAD 1.5%
- --------
<S> <C> <C> <C>
1,900 Conrail Incorporated $ 133,000
15,400 Trinity Industries 485,100
-------
618,100
RETAIL STORES 2.1%
- -------------
15,000 Kroger Company 562,500
1,500 Rite Aid Corporation 51,375
1,500 Safeway Incorporated * 77,250
2,300 Sears Roebuck & Company 89,700
800 Tiffany & Company 40,300
------
821,125
SERVICES 3.0%
- --------
29,000 COMSAT Corporation 540,125
2,100 John Deere & Company 74,025
1,100 Olsten Corporation 43,450
1,400 Quality Dining 33,950
70,000 Ryans Family Steak Houses Incorporated * 490,000
-------
1,181,550
TECHNOLOGY 6.1%
- ----------
1,200 Amgen 71,250
1,200 Biogen Incorporated 73,800
600 Cephalon Incorporated 24,450
500 Hewlett-Packard Company 41,875
1,000 Komag Incorporated * 46,125
1,600 Millipore Corporation 65,800
400 Micron Technology Incorporated 15,850
18,000 Northern Telecom 774,000
20,000 WMX Technologies Incorporated 597,500
5,300 Xerox Corporation 726,100
-------
2,436,750
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
29
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
- ---------
EQUITIES (CONTINUED) MARKET VALUE
- -------------------- ------------
TEXTILE & APPAREL 0.5%
- -----------------
<S> <C> <C> <C>
1,500 Liz Claiborne Incorporated $ 41,625
600 Nautica Enterprises Incorporated 26,250
2,100 NIKE, Incorporated 146,213
-------
214,088
UTILITIES -ELECTRIC 0.8%
- -------------------
3,500 General Public Utilities 119,000
3,900 Illinova Corporation 117,000
3,200 Ohio Edison Company 75,200
------
311,200
UTILITIES -TELEPHONE 2.2%
- --------------------
12,000 Ameritech Corporation 708,000
2,100 GTE Corporation 92,400
1,800 Worldcom Incorporated 63,450
------
863,850
MISCELLANEOUS 1.6%
- -------------
900 Excel Limited 54,900
600 Input/Output, Incorporated 34,650
900 Mallinckrodt Groupe Incorporated 32,738
600 Novellus Systems, Incorporated 32,400
1,800 Repsol S.A. ADS 59,175
50,000 Vans Incorporated 418,750
700 Wolverine World Wide 22,035
------
654,648
TOTAL COMMON STOCK (COST $24,730,855) 29,239,056
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
30
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
TOTAL LONG-TERM OBLIGATIONS 25.1% MARKET VALUE
--------------------------- ------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 14.0%
--------------------------------------
<S> <C> <C> <C>
United States Treasury Bonds Stripped
$ 3,245,000 0.000% 02/15/20 $ 733,710
United States Treasury Bonds
50,000 6.250% 08/15/23 51,406
125,000 7.625% 02/15/25 152,773
United States Treasury Notes
(A) 600,000 5.625% 10/31/97 604,688
870,000 6.250% 08/31/00 900,721
Federal Home Loan Mortgage Corporation
1,500,000 7.000% 01/01/26 1,515,000
200,000 7.500% 01/01/26 205,313
Federal National Mortgage Association
601,410 9.000% 08/01/07 636,995
Government National Mortgage Association
(mortgage-backed securities)
218,332 10.000% 12/15/20 240,634
522,370 7.000% 06/20/25 535,430
-------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 5,576,670
ASSET BACKED OBLIGATIONS 2.0%
First USA Credit Card Trust
100,000 6.240% 10/15/04 Series 1995-2 100,215
MBNA Credit Card Master Trust
100,000 6.207% 04/15/05 Series 1995-JA 100,042
Resolution Trust Corporation
351,157 6.622% 09/25/21 Series 1992-9 340,178
250,010 7.196% 06/25/24 246,884
-------
TOTAL ASSET BACKED OBLIGATIONS 787,319
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
31
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
TOTAL LONG-TERM OBLIGATIONS (CONTINUED) MARKET VALUE
--------------------------------------- ------------
CORPORATE OBLIGATIONS 9.1%
---------------------
AEROSPACE & DEFENSE 0.5%
-------------------
<S> <C> <C> <C>
United Airlines
$ 150,000 11.210% 05/01/14 199,848
AUTOMOTIVE 0.3%
----------
General Motors Corporation
100,000 7.400% 09/01/25 106,330
BANK 0.9%
----
Banque Paribas
200,000 6.875% 03/01/09 200,250
Wachovia Bank
140,000 4.500% 02/16/96 139,901
-------
340,151
COMMUNICATION 0.7%
-------------
Time Warner Company
250,000 8.375% 07/15/33 273,463
ELECTRONICS 1.4%
-----------
Hydro-Quebec
300,000 8.250% 04/15/26 343,050
Niagara Mohawk Power
240,000 7.750% 05/15/06 227,068
-------
570,118
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
32
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
TOTAL LONG-TERM OBLIGATIONS (CONTINUED) MARKET VALUE
--------------------------------------- ------------
CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------
FINANCIAL 3.5%
---------
<S> <C> <C> <C>
Commercial Credit Company
$ 350,000 7.875% 02/01/25 $ 399,335
Equitable Companies
240,000 9.000% 12/15/04 275,171
Ford Motor Credit Company
30,000 8.875% 08/01/96 30,566
General Electric Capital Corporation
260,000 4.950% 10/30/03 299,547
ITT Financial Corporation
50,000 6.750% 11/15/05 51,248
70,000 7.375% 11/15/15 72,207
Long Island Lighting
240,000 9.625% 07/01/24 255,042
-------
1,383,116
TELECOMMUNICATION 1.3%
-----------------
TCI Communications Incorporated
240,000 8.750% 08/01/15 264,884
US West Communications
250,000 7.125% 11/15/43 257,522
-------
522,406
MISCELLANEOUS 0.5%
-------------
News American Holdings
200,000 8.875% 04/26/23 238,595
-------
TOTAL CORPORATE OBLIGATIONS 3,634,027
---------
TOTAL LONG-TERM OBLIGATIONS
(COST $9,476,576) 9,998,016
---------
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
33
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
---------
TOTAL SHORT-TERM OBLIGATIONS 5.5% MARKET VALUE
---------------------------- ------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 1.1%
--------------------------------------
<S> <C> <C> <C>
United States Treasury Bills
$ 335,000 5.275% 01/11/96 $ 334,529
100,000 5.220% 03/21/96 98,927
----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 433,456
COMMERCIAL PAPER 0.6%
----------------
Corporate Receivable Corporation
250,000 5.750% 01/17/9631 249,361
DEMAND NOTES 3.8%
------------
General Mills Demand Note
675,962 5.490% 12/31/31 675,962
Sara Lee Demand Note
12,236 5.467% 12/31/31 11,046
Pitney Bowes Demand Note
203,655 5.487% 12/31/31 203,655
Warner Lambert Demand Note
760,667 5.458% 12/31/31 518,995
Wisconsin Electric Demand Note
95,875 5.528% 12/31/31 95,875
-------
TOTAL DEMAND NOTES 1,505,533
TOTAL SHORT-TERM OBLIGATIONS
(AMORTIZED COST $2,188,350) 2,188,350
---------
TOTAL INVESTMENTS
(COST BASIS $36,395,781) 103.9% 41,425,422
CASH AND OTHER ASSETS, LESS
LIABILITIES -3.9% (1,535,958)
----------
TOTAL NET ASSETS 100.0% 39,889,464
----------
----------
</TABLE>
* Non-income producing stocks.
The accompanying notes to the financial statements are an integral part of this
schedule.
34
<PAGE>
BALANCED PORTFOLIO (CONTINUED)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
(A) 50,000 pledged as margin for S&P 500 futures contracts. The Portfolio
had the following open S&P 500 futures contracts at December 31, 1995:
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF GAIN (LOSS)
CONTRACTS TYPE EXPIRATION DECEMBER 31, 1995
--------- ---- ---------- -----------------
<S> <C> <C> <C>
1 Short S&P 500 Stock Index March 1996 $2,850
</TABLE>
The accompanying notes to the financial statements are an integral part of
this schedule.
35
<PAGE>
AHA INVESTMENT FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1995
(UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FULL LIMITED
MATURITY MATURITY DIVERSIFIED
FIXED INCOME FIXED INCOME EQUITY BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at market value $ 58,415,959 $ 183,214,261 $ 50,227,030 $ 41,425,422
Receivable for investments sold -- 52,057 -- 48,002
Cash 5,014 5,105 14,199 9,560
Dividends and interest receivable 728,397 2,280,105 108,100 173,618
Prepaid insurance 3,196 12,635 2,267 2,803
------------ ------------- ------------ ------------
Total Assets $ 59,152,566 $ 185,564,163 $ 50,351,596 $ 41,659,405
LIABILITIES:
Payable for investments purchased $ 6,294,586 $ -- $ -- $ 1,741,612
Payable for dividends 43,128 183,810 -- --
Accrued expenses and other
liabilities 24,295 82,238 20,824 28,329
------------ ------------- ------------ ------------
Total Liabilities 6,362,009 266,048 20,824 1,769,941
------------ ------------- ------------ ------------
NET ASSETS $ 52,790,557 $ 185,298,115 $ 50,330,772 $ 39,889,464
------------ ------------- ------------ ------------
------------ ------------- ------------ ------------
Net Assets consist of:
Capital Stock ($0.01 par value
and 200 million shares
authorized) and Paid-in Capital $ 52,352,127 $ 185,381,799 $ 41,268,392 $ 34,272,308
Undistributed
net investment income -- -- 51,024 862,770
Accumulated net realized gain
(loss) on investments sold (1,832,439) (2,768,631) 1,471,585 (275,256)
Net unrealized appreciation of
investments and futures 2,270,869 2,684,947 7,539,771 5,029,642
------------ ------------- ------------ ------------
Total Net Assets $ 52,790,557 $ 185,298,115 $ 50,330,772 $ 39,889,464
------------ ------------- ------------ ------------
------------ ------------- ------------ ------------
Number of Shares Outstanding
at the end of period 5,176,157 17,930,487 3,136,350 3,164,446
------------ ------------- ------------ ------------
NET ASSET VALUE
Per Share $10.20 $10.33 $16.05 $12.61
------------ ------------- ------------ ------------
------------ ------------- ------------ ------------
</TABLE>
The accompanying notes to the financial statements are an integral part of these
statements.
- -------------------------------------------------------------------------------
36
<PAGE>
AHA INVESTMENT FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR SIX-MONTHS ENDED DECEMBER 31, 1995
(UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FULL LIMITED
MATURITY MATURITY DIVERSIFIED
FIXED INCOME FIXED INCOME EQUITY BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 1,613,258 $ 5,949,819 $ 39,668 $ 475,823
Dividends -- -- 508,518 284,091
----------- ----------- ----------- -----------
Total investment income $ 1,613,258 $ 5,949,819 $ 548,186 $ 759,914
EXPENSES:
Custodian fees $ 9,838 $ 19,584 $ 8,264 $ 12,347
Accounting fees 18,544 33,615 15,233 16,328
Transfer agent fees 3,153 11,998 2,881 2,949
Legal fees 2,890 2,890 2,890 2,890
Audit and tax return fees 6,400 6,400 6,400 6,400
Director fees and expenses 2,613 2,613 2,613 2,613
Officers and directors insurance 3,835 15,162 2,720 3,364
Administrative and other fees 12,195 50,671 14,906 10,037
----------- ----------- ----------- -----------
Total Expenses $ 59,468 $ 142,933 $ 55,907 $ 56,928
NET INVESTMENT INCOME $ 1,553,790 $ 5,806,886 $ 492,279 $ 702,986
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Net realized gain on
investments sold 770,022 1,122,033 3,117,221 3,097,324
Net realized loss on
closed futures contracts -- -- -- (63,671)
Net change in unrealized appreciation
of investments 963,356 931,078 2,709,533 884,044
----------- ----------- ----------- -----------
NET GAIN ON INVESTMENTS 1,733,378 2,053,111 5,826,754 3,917,697
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,287,168 $ 7,859,997 $ 6,319,033 $ 4,620,683
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes to the financial statements are an integral part of these
statements.
- -------------------------------------------------------------------------------
37
<PAGE>
AHA INVESTMENT FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FULL MATURITY LIMITED MATURITY
FIXED INCOME PORTFOLIO FIXED INCOME PORTFOLIO
---------------------------------- ------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1995 DECEMBER 31, 1995 JUNE 30, 1995 DECEMBER 31, 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 3,342,918 $ 1,553,790 $ 11,596,443 $ 5,806,886
Net realized gain (loss) on investments
sold and closed futures contracts (817,628) 770,022 (1,238,723) 1,122,033
Net change in unrealized appreciation
of investments and futures 3,055,280 963,356 3,886,124 931,078
------------ ------------ ------------- ------------
Net increase in net assets
resulting from operations 5,580,570 3,287,168 14,243,844 7,859,997
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (3,342,683) (1,553,790) (11,594,989) (5,806,886)
Capital gains distribution -- -- -- --
------------ ------------ ------------- ------------
Net decrease in net assets
resulting from distributions $ (3,342,683) $ (1,553,790) $ (11,594,989) $ (5,806,886)
SHARE TRANSACTIONS:
Subscriptions of fund shares 2,165,737 14,796,617 78,507,554 23,289,332
Investment income dividends
reinvested 2,919,216 1,233,791 9,423,494 4,636,181
Capital gains distribution
reinvested -- -- -- --
------------ ------------ ------------- ------------
Gross increase in fund shares 5,084,953 16,030,408 87,931,048 27,925,513
Redemptions of fund shares (16,200,704) (4,847,648) (93,265,901) (31,536,665)
--------------- ------------ ------------- ------------
Net increase (decrease) from
share transactions (11,115,751) 11,182,760 (5,334,853) (3,611,152)
------------ ------------ ------------- ------------
Net increase (decrease) in net assets $ (8,877,864) $ 12,916,138 $ (2,685,998) $ (1,558,041)
TOTAL NET ASSETS:
Beginning of period 48,752,283 39,874,419 189,542,154 186,856,156
------------ ------------ ------------- ------------
End of period $ 39,874,419 $ 52,790,557 $ 186,856,156 $185,298,115
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
Undistributed net investment income 235 -- -- --
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
</TABLE>
The accompanying notes to the financial statements are an integral part of these
statements.
- -------------------------------------------------------------------------------
38
<PAGE>
AHA INVESTMENT FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED EQUITY PORTFOLIO BALANCED PORTFOLIO
---------------------------------- ------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1995 DECEMBER 31, 1995 JUNE 30, 1995 DECEMBER 31, 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 631,897 $ 492,279 $ 2,024,214 $ 702,986
Net realized gain on investments
sold and closed futures contracts 954,231 3,117,221 1,096,459 3,033,653
Net change in unrealized appreciation
of investments and futures 3,907,331 2,709,533 4,122,641 884,044
------------ ------------ ------------- ------------
Net increase in net assets resulting
from operations 5,493,459 6,319,033 7,243,314 4,620,683
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (591,777) (487,659) (1,289,346) (642,803)
Capital gains distribution (2,541,447) (2,212,939) (1,975,282) (3,650,612)
------------ ------------ ------------- ------------
Net decrease in net assets
resulting from distributions $ (3,133,224) $ (2,700,598) $ (3,264,628) $ (4,293,415)
SHARE TRANSACTIONS:
Subscriptions of fund shares 14,329,258 7,691,481 4,150,394 623,179
Investment income dividends
reinvested 591,122 488,316 1,234,015 629,143
Capital gains distribution
reinvested 2,541,447 2,212,939 1,866,512 3,409,871
------------ ------------ ------------- ------------
Gross increase in fund shares $ 17,461,827 $ 10,392,736 $ 7,250,921 $ 4,662,193
Redemptions of fund shares (2,734,698) (3,314,286) (11,107,139) (11,745,901)
------------ ------------ ------------- ------------
Net increase (decrease) from
share transactions 14,727,129 7,078,450 (3,856,218) (7,083,708)
------------ ------------ ------------- ------------
Net increase (decrease) in net assets $ 17,087,364 $ 10,696,885 $ 122,468 $ (6,756,440)
TOTAL NET ASSETS:
Beginning of period 22,546,523 39,633,887 46,523,436 46,645,904
------------ ------------ ------------- ------------
End of period $ 39,633,887 $ 50,330,772 $ 46,645,904 $ 39,889,464
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
Undistributed net investment income $ 46,405 $ 51,024 $ 802,585 $ 862,770
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
</TABLE>
The accompanying notes to the financial statements are an integral part of these
statements.
- -------------------------------------------------------------------------------
39
<PAGE>
AHA INVESTMENT FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(UNAUDITED)
NOTE 1.
SIGNIFICANT ACCOUNTING POLICIES
The following are the significant accounting policies of Full Maturity Fixed
Income, Limited Maturity Fixed Income, Diversified Equity and Balanced
Portfolios (the "Portfolios"), each a series of AHA Investment Funds, Inc., a
Maryland corporation, ("Fund").
SECURITY VALUATIONS
All securities are recorded at fair market value as of December 31, 1995.
Securities traded on national securities exchanges are valued at last reported
sales prices or, if there are no sales, at the latest bid quotation. Each over-
the-counter security for which the last sale price is available from NASDAQ is
valued at that price. All other over-the-counter securities for which reliable
quotations are available are valued at the latest bid quotation. Securities
convertible into equity securities are valued at the greater of latest bid
valuation or net conversion value. Other assets and securities are valued by a
method that the Board of Directors believes represents a fair value.
ACCOUNTING FOR FUTURES
The Fund may enter into long or short positions in futures contracts in order to
hedge against the effect of changing values on portfolio securities held. When
the Fund enters into a futures contract, it is required to deposit, into a
segregated account at its custodian bank, U.S. Government securities as a
guarantee that it will meet the futures commitment. Each day the Fund receives
or pays cash, called "variation margin", equal to the daily change in the market
value of the futures contracts. Such receipts and payments are recorded as
unrealized gains or losses until the futures contracts expire or are closed out.
Risks of entering into futures contracts include the possibility that there may
be an illiquid market at the time the Portfolios seek to close out a contract
and changes in the value of the futures contract may not correlate with changes
in the value of the portfolio securities being hedged. The Balanced Portfolio
had S&P 500 Stock Index contracts open as of December 31, 1995.
INVESTMENT OBJECTIVES
FULL MATURITY FIXED INCOME PORTFOLIO
Seeks over the long term the highest level of income consistent with
preservation of capital. Invests primarily in high quality fixed income
securities. There is no restriction on the maximum maturity of the securities
purchased. The average dollar-weighted maturity will vary and may exceed 20
years.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
LIMITED MATURITY FIXED INCOME PORTFOLIO
Seeks a high level of current income, consistent with preservation of capital
and liquidity. Invests primarily in high quality fixed income securities and
maintains an average dollar-weighted portfolio maturity of five years or less.
DIVERSIFIED EQUITY PORTFOLIO
Seeks long-term capital growth. Invests primarily in equity securities and
securities having equity characteristics.
BALANCED PORTFOLIO
Seeks a combination of growth of capital and income. Invests varying proportions
of its assets in equity and fixed income securities, with not less than 25
percent of total assets invested in fixed income securities.
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements with respect to any of the types
of securities in which they are authorized to invest without regard to the
maturity of the underlying security. Repurchase agreements will be effected only
with banks, savings institutions and broker-dealers. They involve the purchase
by a Portfolio of a debt security with the condition that, after a stated period
of time, the original seller will buy back the same security at a predetermined
price or yield. Repurchase agreements are used to enhance liquidity and to earn
income for periods as short as overnight. To minimize risk, the securities
underlying each repurchase agreement will be maintained with the Fund's
custodian, or a subcustodian, in an amount at least equal in value to the
repurchase price under the agreement (including accrued interest thereunder),
and such agreements will only be effected with parties that meet certain
creditworthiness standards. However, in the event the other party to the
repurchase agreement fails to repurchase the securities subject to such
agreement, a Portfolio could suffer a loss to the extent it is precluded from
selling the securities or, if due to delays, proceeds from the sale are less
than the repurchase price. The Fund had no outstanding repurchase agreements as
of December 31, 1995.
FEDERAL INCOME TAXES
No provision is made for Federal Income Taxes since the Portfolios elect to be
taxed as "regulated investment companies" and make such distributions to their
shareholders as to be relieved of all Federal income taxes under provisions of
current Federal tax law.
OTHER INFORMATION
The accounts of the Fund are kept on the accrual basis of accounting. Securities
transactions are recorded on the trade date. Realized gains or losses from sales
of securities are determined on the specific identification cost basis. Dividend
income is recognized on the ex-dividend date.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2.
FUND DISTRIBUTIONS
The Full Maturity Fixed Income Portfolio and the Limited Maturity Fixed Income
Portfolio declare income dividends from net investment income daily and pay
these dividends monthly, on the last day of every month.
In the Balanced Portfolio and Diversified Equity Portfolio, dividends from net
investment income are declared on the thirteenth day of the last month of each
quarter; the ex-dividend date is the fourteenth; and payment is made on the
fifteenth. The aggregate distributions of net investment income for the Balanced
Portfolio and Diversified Equity Portfolio were $0.19 and $0.17 per share,
respectively, during the six months ended Decenber 31, 1995.
During the six months ended December 31, 1995, the Balanced and Diversified
Equity Portfolios made a long-term capital gain distribution of $0.4866 and
$0.4438 per share, respectively.
During the six months ended December 31, 1995, the Balanced and Diversified
Equity Portfolios made a short-term capital gain distribution of $0.7470 and
$0.2953 per share, respectively.
NOTE 3.
DIRECTORS' FEES AND TRANSACTIONS WITH AFFILIATES
Directors not affiliated with Hewitt Associates LLC ("Hewitt") or American
Hospital Association ("AHA") receive $1,000 for each quarterly meeting and $500
for each special meeting of the Board of Directors, or committee thereof, (plus
travel expenses). No remuneration has been paid to any principal or employee of
the Fund's investment consultant, Hewitt, or any director or officer of AHA. The
investments of the Portfolios are managed by various advisory organizations
which serve as the investment managers. The Fund pays no fees to Hewitt or to
the investment managers.
Hewitt is compensated for its services by the shareholders pursuant to The
Program Services Agreement it has with each shareholder, under which Hewitt
provides asset allocation consulting and certain other services. Fees of the
investment managers are paid by Hewitt.
Hewitt has voluntarily undertaken to pay certain expenses of the Portfolios (or
to reimburse the Portfolios for certain expenses) as may be necessary to limit
total expenses of the Portfolios to specified amounts. American Hospital
Association Services, Inc. has, in this regard, agreed to reimburse Hewitt for
one-half of the amounts incurred by Hewitt pursuant to this undertaking. The
maximum expense as a percent of average net assets for the Full Maturity Fixed
Income Portfolio, the Limited Maturity Fixed Income Portfolio, the Diversified
Equity Portfolio, and the Balanced Portfolio is 0.50% (annual percentage).
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Portfolios have reached asset levels which allow the reduction of expenses
to percentage amounts below that set forth above. The Portfolios may reimburse
Hewitt for the expenses of the Portfolios it voluntarily has absorbed on or
after September 1, 1989, provided that such reimbursement does not cause the
percentage expense limitations set forth above to be exceeded and is approved by
the Board of Directors of the Fund. There is no commitment, however, by the Fund
to make any such reimbursement. As of December 31, 1995, approximate expenses
paid on behalf of or reimbursed to the Portfolio by Hewitt since September 1,
1989 were: $101,400 for the Full Maturity Fixed Income Portfolio; $41,000 for
the Limited Maturity Fixed Income Portfolio; $116,000 for the Diversified Equity
Portfolio; and $10,900 for the Balanced Portfolio.
NOTE 4.
SHORT-TERM DEBT
To facilitate portfolio liquidity, each Portfolio is authorized to borrow
against portfolio securities. During the six months ended December 31, 1995,
there were no borrowings.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 5.
INVESTMENT TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities (exclusive
of short-term obligations) for the six months ended December 31, 1995, is
presented below:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
PORTFOLIO PURCHASES SALES
- ----------------------------------------------------------------------
<S> <C> <C>
Full Maturity Fixed Income $ 59,341,741 $ 45,476,039
Limited Maturity Fixed Income $ 111,171,947 $ 124,950,604
Diversified Equity $ 23,298,199 $ 16,308,396
Balanced $ 29,362,719 $ 35,324,016
- ----------------------------------------------------------------------
</TABLE>
At December 31, 1995, gross unrealized appreciation and depreciation of
investments on a tax basis and the cost of investments for financial reporting
purposes and for Federal income tax purposes were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
COST OF INVESTMENTS
---------------------------
FINANCIAL FEDERAL
PORTFOLIO APPRECIATION DEPRECIATION REPORTING INCOME TAX
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Full Maturity
Fixed Income $ 2,478,631 $ 207,762 $ 56,145,090 $ 56,145,090
Limited Maturity
Fixed Income $ 2,718,603 $ 33,656 $ 180,529,314 $ 180,529,314
Diversified Equity $ 8,738,996 $ 1,199,225 $ 42,687,259 $ 42,687,259
Balanced $ 6,007,299 $ 977,657 $ 36,395,781 $ 36,395,781
- ----------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 6.
TRANSACTIONS IN CAPITAL STOCK SHARES
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995
-----------------------------------------------------------
FULL LIMITED
MATURITY MATURITY DIVERSIFIED
FIXED INCOME FIXED INCOME EQUITY BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transactions in capital stock shares
were as follows:
Subscriptions of fund shares 1,495,773 2,282,097 486,315 47,309
Investment income dividends
reinvested 123,750 452,312 29,960 46,941
Capital gains distribution
reinvested -- -- 139,442 273,885
----------- ----------- ----------- -----------
Gross increase in fund shares 1,619,523 2,734,409 655,717 368,135
Redemptions of fund shares (478,087) (3,079,480) (203,993) (896,677)
----------- ----------- ----------- -----------
Net increase (decrease) in fund shares 1,141,436 (345,071) 451,724 (528,542)
Beginning of Year 4,034,721 18,275,558 2,684,626 3,692,988
----------- ----------- ----------- -----------
End of Period 5,176,157 17,930,487 3,136,350 3,164,446
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED JUNE 30, 1995
-----------------------------------------------------------
FULL LIMITED
MATURITY MATURITY DIVERSIFIED
FIXED INCOME FIXED INCOME EQUITY BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transactions in capital stock shares
were as follows:
Subscriptions of fund shares 228,554 7,784,289 1,014,426 355,698
Investment income dividends
reinvested 308,551 936,142 41,675 103,437
Capital gains distribution
reinvested -- -- 200,588 166,802
----------- ----------- ----------- -----------
Gross increase in fund shares 537,105 8,720,431 1,256,689 625,937
Redemptions of fund shares (1,645,123) (9,226,451) (194,347) (921,372)
----------- ----------- ----------- -----------
Net increase (decrease) in fund shares (1,108,018) (506,020) 1,062,342 (295,435)
Beginning of Year 5,142,739 18,781,578 1,622,284 3,988,423
----------- ----------- ----------- -----------
End of Year 4,034,721 18,275,558 2,684,626 3,692,988
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 7:
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
FULL MATURITY FIXED INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
PERIOD ENDED (A) YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, 1989 JUNE 30, 1990 JUNE 30, 1991 JUNE 30, 1992
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.30 $ 10.01 $ 10.03
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.55* 0.78* 0.79* 0.75
Net realized and unrealized gain (loss)
on investments and futures 0.30 (0.29) 0.02 0.64
-------- -------- -------- --------
Total from Investment Operations 0.85 0.49 0.81 1.39
LESS DISTRIBUTIONS:
Net investment income (0.55) (0.78) (0.79) (0.75)
Net realized capital gains (0.00) (0.00) (0.00) (0.09)
-------- -------- -------- --------
Total Distributions (0.55) (0.78) (0.79) (0.84)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.30 $ 10.01 $ 10.03 $ 10.58
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 8.60% 4.62% 7.87% 13.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 1,422 $ 11,134 $ 19,893 $ 47,500
Ratio of Expenses to Average Net Assets 0.50%* 0.50%* 0.50%* 0.42%
Ratio of Net Investment Income to
Average Net Assets 8.12%* 8.44%* 8.06%* 7.37%
Portfolio turnover rate 234.20% 203.83% 411.24% 252.89%
- ---------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1993 JUNE 30, 1994 JUNE 30, 1995 DECEMBER 31, 1995
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.58 $ 10.76 $ 9.48 $ 9.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.72 0.59 0.65 0.33
Net realized and unrealized gain (loss)
on investments and futures 0.53 (0.64) 0.40 0.32
-------- -------- -------- --------
Total from Investment Operations 1.25 (0.05) 1.05 0.65
LESS DISTRIBUTIONS:
Net investment income (0.72) (0.59) (0.65) (0.33)
Net realized capital gains (0.35) (0.64) (0.00) (0.00)
-------- -------- -------- --------
Total Distributions (1.07) (1.23) (0.65) (0.33)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.76 $ 9.48 $ 9.88 $ 10.20
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 11.98% -1.43% 10.99% 6.42%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 52,094 $ 48,752 $ 39,874 $ 52,791
Ratio of Expenses to Average Net Assets 0.27% 0.24% 0.21% 0.24%
Ratio of Net Investment Income to
Average Net Assets 6.77% 5.67% 6.88% 6.34%
Portfolio turnover rate 266.03% 331.63% 279.42% 103.53%
- --------------------------------------
</TABLE>
(*)Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Investment Advisor.
(A)Commencement date for the Full Maturity Fixed Income Portfolio was October
20, 1988.
(B)Total Return on Net Asset Value is net of the management fee of 0.50% per
annum.
46
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 7:
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
LIMITED MATURITY FIXED INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
PERIOD ENDED (A) YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, 1989 JUNE 30, 1990 JUNE 30, 1991 JUNE 30, 1992
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.07 $ 9.98 $ 10.11
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.43* 0.77* 0.74* 0.64
Net realized and unrealized gain (loss)
on investments and futures 0.07 (0.09) 0.13 0.45
-------- -------- -------- --------
Total from Investment Operations 0.50 0.68 0.87 1.09
LESS DISTRIBUTIONS:
Net investment income (0.43) (0.77) (0.74) (0.64)
Net realized capital gains (0.00) (0.00) (0.00) (0.08)
-------- -------- -------- --------
Total Distributions (0.43) (0.77) (0.74) (0.72)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.07 $ 9.98 $ 10.11 $ 10.48
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 5.01% 6.52% 8.49% 10.46%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 6,284 $ 18,522 $ 30,151 $101,881
Ratio of Expenses to Average Net Assets 0.50%* 0.50%* 0.50%* 0.29%
Ratio of Net Investment Income to
Average Net Assets 8.49%* 8.04%* 7.49%* 6.02%
Portfolio turnover rate 0.00% 137.50% 279.16% 99.86%
- -------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1993 JUNE 30, 1994 JUNE 30, 1995 DECEMBER 31, 1995
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.48 $ 10.52 $ 10.09 $ 10.22
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.49 0.49 0.62 0.32
Net realized and unrealized gain (loss)
on investments and futures 0.12 (0.32) 0.13 0.11
-------- -------- -------- --------
Total from Investment Operations 0.61 0.17 0.75 0.43
LESS DISTRIBUTIONS:
Net investment income (0.49) (0.49) (0.62) (0.32)
Net realized capital gains (0.08) (0.11) (0.00) (0.00)
-------- -------- -------- --------
Total Distributions (0.57) (0.60) (0.62) (0.32)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.52 $ 10.09 $ 10.22 $ 10.33
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 5.49% 1.14% 7.19% 3.98%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $162,694 $189,542 $186,856 $185,298
Ratio of Expenses to Average Net Assets 0.17% 0.14% 0.12% 0.15%
Ratio of Net Investment Income to
Average Net Assets 4.66% 4.73% 6.17% 6.08%
Portfolio turnover rate 167.38% 178.01% 155.12% 64.34%
- -------------------------------------
</TABLE>
(*)Reflects he waiver of certain management fees and reimbursement of certain
other expenses by the Investment Advisor.
(A)Commencement date for the Limited Maturity Fixed Income Portfolio was
December 22, 1988.
(B)Total Return on Net Asset Value is net of the management fee of 0.50% per
annum.
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 7:
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
DIVERSIFIED EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
PERIOD ENDED (A) YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, 1989 JUNE 30, 1990 JUNE 30, 1991 JUNE 30, 1992
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 11.16 $ 11.42 $ 11.47
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.35* 0.43* 0.35* 0.31*
Net realized and unrealized gain
on investments 1.12 0.52 0.08 1.52
-------- -------- -------- --------
Total from Investment Operations 1.47 0.95 0.43 1.83
LESS DISTRIBUTIONS:
Net investment income (0.31) (0.44) (0.34) (0.31)
Net realized capital gains (0.00) (0.25) (0.04) (0.04)
-------- -------- -------- --------
Total Distributions (0.31) (0.69) (0.38) (0.35)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.16 $ 11.42 $ 11.47 $ 12.95
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 14.45% 7.76% 3.24% 15.14%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 3,556 $ 7,920 $ 10,725 $ 13,878
Ratio of Expenses to Average Net Assets 0.50%* 0.50%* 0.50%* 0.50%*
Ratio of Net Investment Income to
Average Net Assets 4.88%* 4.45%* 3.37%* 2.13%
Portfolio turnover rate 29.99% 33.57% 72.49% 65.89%
- ------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1993 JUNE 30, 1994 JUNE 30, 1995 DECEMBER 31, 1995
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.95 $ 13.95 $ 13.90 $ 14.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.25* 0.26 0.29 0.17
Net realized and unrealized gain
on investments 1.70 0.45 2.34 2.03
-------- -------- -------- --------
Total from Investment Operations 1.95 0.71 2.63 2.20
LESS DISTRIBUTIONS:
Net investment income (0.25) (0.26) (0.29) (0.17)
Net realized capital gains (0.70) (0.50) (1.48) (0.74)
-------- -------- -------- --------
Total Distributions (0.95) (0.76) (1.77) (0.91)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.95 $ 13.90 $ 14.76 $ 16.05
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 14.47% 4.21% 20.11% 14.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 21,087 $ 22,547 $ 39,634 $ 50,331
Ratio of Expenses to Average Net Assets 0.50%* 0.40% 0.31% 0.24%
Ratio of Net Investment Income to
Average Net Assets 1.90% 1.83% 2.30% 2.11%
Portfolio turnover rate 45.87% 100.45% 68.12% 36.97%
- -------------------------------------
</TABLE>
(*)Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Investment Advisor.
(A)Commencement date for the Diversified Equity Portfolio was October 20, 1988.
(B)Total Return on Net Asset Value is net of the management fee of 0.75% per
annum.
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 7:
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
PERIOD ENDED (A) YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, 1989 JUNE 30, 1990 JUNE 30, 1991 JUNE 30, 1992
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.68 $ 10.69 $ 10.87
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.39* 0.56* 0.54* 0.44
Net realized and unrealized gain (loss)
on investments and futures 0.64 0.11 0.21 1.16
-------- -------- -------- --------
Total from Investment Operations 1.03 0.67 0.75 1.60
LESS DISTRIBUTIONS:
Net investment income (0.35) (0.56) (0.57) (0.44)
Net realized capital gains (0.00) (0.10) (0.00) (0.00)
-------- -------- -------- --------
Total Distributions (0.35) (0.66) (0.57) (0.44)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.68 $ 10.69 $ 10.87 $ 12.03
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 9.96% 5.34% 6.62% 13.99%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 13,545 $ 34,565 $ 33,547 $ 34,853
Ratio of Expenses to Average Net Assets 0.50%* 0.50%* 0.50%* 0.38%
Ratio of Net Investment Income to
Average Net Assets 6.06%* 6.12%* 4.92%* 3.73%
Portfolio turnover rate 106.23% 132.60% 201.36% 201.93%
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED SIX MONTHS ENDED
JUNE 30, 1993 JUNE 30, 1994 JUNE 30, 1995 DECEMBER 31, 1995
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.03 $ 12.76 $ 11.66 $ 12.63
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.44 0.42 0.32 0.19
Net realized and unrealized gain (loss)
on investments and futures 1.18 (0.26) 1.44 1.21
-------- -------- -------- --------
Total from Investment Operations 1.62 0.16 1.76 1.40
LESS DISTRIBUTIONS:
Net investment income (0.44) (0.42) (0.32) (0.19)
Net realized capital gains (0.45) (0.84) (0.47) (1.23)
-------- -------- -------- --------
Total Distributions (0.89) (1.26) (0.79) (1.42)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.76 $ 11.66 $ 12.63 $ 12.61
-------- -------- -------- --------
-------- -------- -------- --------
TOTAL RETURN ON NET ASSET VALUE(B) 13.02% 0.29% 14.97% 10.89%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands) $ 41,313 $ 46,523 $ 46,646 $ 39,889
Ratio of Expenses to Average Net Assets 0.31% 0.26% 0.21% 0.26%
Ratio of Net Investment Income to
Average Net Assets 3.51% 3.39% 4.12% 3.17%
Portfolio turnover rate 132.14% 208.31% 160.41% 70.22%
</TABLE>
- --------------------
(*)Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Investment Advisor.
(A)Commencement date for the Balanced Portfolio was October 20, 1988.
(B)Total Return on Net Asset Value is net of the management fee of 0.75% per
annum.
49
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