<PAGE> 1
Semiannual Report
MAINSTAY(R) INSTITUTIONAL FUNDS INC.
UNAUDITED APRIL 30, 2000
Growth Equity Fund
Indexed Equity Fund
Value Equity Fund
Asset Manager Fund
International Equity Fund
EAFE Index Fund
International Bond Fund
Bond Fund
Indexed Bond Fund
Short-Term Bond Fund
Money Market Fund
[MAINSTAY INVESTMENTS LOGO]
<PAGE> 2
<TABLE>
<CAPTION>
PERFORMANCE HIGHLIGHTS
TOTAL RETURNS*
INDIVIDUAL YEARS ENDED DECEMBER 31
TEN SIX
MONTHS MONTHS
ENDED ENDED
OCT 31, APR 30,
FUNDS 1993 1994 1995 1996 1997 1998 1999 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH FUNDS
Growth Equity 9.59% -2.23% 37.88% 21.62% 24.73% 40.50% 9.96% 14.58%
(Institutional Class)(+)
Growth Equity (Service 9.59 -2.23 37.50 21.29 24.50 40.18 9.74 14.42
Class)(++)
INDEXED EQUITY 9.41 0.90 36.88 22.57 32.88 28.62 11.80 7.03
(INSTITUTIONAL CLASS)(+)
INDEXED EQUITY (SERVICE 9.41 0.90 36.70 22.21 32.60 28.24 11.60 6.88
CLASS)(++)
GROWTH AND INCOME FUNDS
Value Equity (Institutional 14.90% 1.22% 29.42% 22.41% 22.63% -8.10% 7.91% -0.78%
Class)(+)
Value Equity (Service 14.90 1.22 29.32 22.10 22.28 -8.30 7.65 -0.92
Class)(++)
ASSET MANAGER 8.79 -0.86 26.81 16.16 26.69 21.31 5.58 8.40
(INSTITUTIONAL CLASS)(+#)
ASSET MANAGER (SERVICE 8.79 -0.86 26.70 15.89 26.30 21.00 5.31 8.33
CLASS)(++#)
INTERNATIONAL FUNDS
International Equity 25.03% 8.36% 7.17% 12.09% 5.44% 22.41% 11.23% 4.25%
(Institutional
Class)(sec.)
International Equity 25.03 8.36 6.86 11.59 4.88 22.20 10.96 4.13
(Service Class)(sec.)
EAFE Index (Institutional 28.97 6.83 9.03 6.45 0.40 19.15 12.31 5.85
Class)(+)
EAFE Index (Service 28.97 6.83 8.63 6.37 0.08 18.83 12.08 5.80
Class)(++)
INTERNATIONAL BOND 14.56 3.11 18.46 14.32 2.62 12.53 -5.33 -9.09
(INSTITUTIONAL
CLASS)(SEC.)
INTERNATIONAL BOND (SERVICE 14.56 3.11 18.26 14.08 2.27 12.30 -5.50 -9.23
CLASS)(SEC.)
INCOME FUNDS
Bond (Institutional 9.74% -3.31% 17.88% 2.80% 8.57% 7.93% -1.61% 0.54%
Class)(+)
Bond (Service Class)(++) 9.74 -3.31 17.55 2.62 8.21 7.73 -1.92 0.50
INDEXED BOND (INSTITUTIONAL 9.64 -3.44 18.07 2.55 9.01 8.21 -1.56 1.47
CLASS)(+)
INDEXED BOND (SERVICE 9.64 -3.44 17.97 2.34 8.75 7.86 -1.65 1.37
CLASS)(++)
Short-Term Bond 5.67 0.11 10.27 4.81 6.13 6.37 2.12 1.63
(Institutional Class)(+)
Short-Term Bond (Service 5.67 0.11 10.07 4.46 5.98 5.98 1.91 1.58
Class)(++)
MONEY MARKET (II) 2.89 3.88 5.63 5.11 5.27 5.25 3.96 2.75
(Institutional Class)(+)
MONEY MARKET (II) (Service 2.89 3.88 5.46 4.85 5.01 4.99 3.74 2.62
Class)(++)
MONEY MARKET (II) (Sweep 2.89 3.88 5.46 4.85 5.01 4.99 3.53 2.50
Shares Class)(++)
<CAPTION>
PERFORMANCE HIGHLIGHTS
AVERAGE ANNUAL
TOTAL RETURNS
AS OF APRIL 30, 2000
SINCE
FUNDS 1 YEAR 5 YEARS INCEPTION
<S> <C> <C> <C>
GROWTH FUNDS
Growth Equity 22.23% 27.57% 23.17%
(Institutional Class)(+)
Growth Equity (Service 21.95 27.27 23.00
Class)(++)
INDEXED EQUITY 9.91 24.90 19.48
(INSTITUTIONAL CLASS)(+)
INDEXED EQUITY (SERVICE 9.63 24.59 19.32
CLASS)(++)
GROWTH AND INCOME FUNDS
Value Equity (Institutional -4.83% 11.56% 14.93%
Class)(+)
Value Equity (Service -5.11 11.27 14.78
Class)(++)
ASSET MANAGER 8.52 19.07 14.46
(INSTITUTIONAL CLASS)(+#)
ASSET MANAGER (SERVICE 8.29 18.76 14.31
CLASS)(++#)
INTERNATIONAL FUNDS
International Equity 10.79% 12.49% 11.37%
(Institutional
Class)(sec.)
International Equity 10.46 12.11 11.11
(Service Class)(sec.)
EAFE Index (Institutional 12.02 9.50 8.80
Class)(+)
EAFE Index (Service 11.81 9.21 8.65
Class)(++)
INTERNATIONAL BOND -9.75 4.18 7.16
(INSTITUTIONAL
CLASS)(SEC.)
INTERNATIONAL BOND (SERVICE -10.04 3.91 7.03
CLASS)(SEC.)
INCOME FUNDS
Bond (Institutional -0.38% 5.80% 6.55%
Class)(+)
Bond (Service Class)(++) -0.53 5.55 6.40
INDEXED BOND (INSTITUTIONAL 0.90 6.07 6.84
CLASS)(+)
INDEXED BOND (SERVICE 0.81 5.81 6.72
CLASS)(++)
Short-Term Bond 3.02 5.39 5.77
(Institutional Class)(+)
Short-Term Bond (Service 2.76 5.14 5.63
Class)(++)
MONEY MARKET (II) 5.19 5.23 4.75
(Institutional Class)(+)
MONEY MARKET (II) (Service 4.93 4.97 4.61
Class)(++)
MONEY MARKET (II) (Sweep 4.67 4.90 4.58
Shares Class)(++)
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO
CURRENT MARKET VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN
THAT SHOWN. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE
SO THAT UPON REDEMPTION, SHARES MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
Performance figures (through 1993 for MainStay Institutional
Value Equity Fund and MainStay Institutional Growth Equity Fund,
1996 for MainStay Institutional Asset Manager Fund, and 1998 for
MainStay Institutional International Equity Fund) reflect
certain fee waivers and/or expense limitations. As a result,
total return figures, which take into account these fee waivers
and/or expense limitations, may have been lower had they not
been in effect. The fee waivers and expense limitations are
voluntary and may be terminated at any time.
See prospectuses for more detailed information. The Funds'
prospectuses contain more information about advisory fees, other
expenses, and information about share classes. Please read them
carefully before you invest or send money.
Foreign investing may be subject to greater risks than domestic
investing. These may include securities markets that are less
efficient, less liquid, and more volatile than those in the
United States, as well as foreign currency fluctuations and
different governmental regulatory concerns.
The views of the Funds' management and portfolio holdings are as
of April 30, 2000; views and portfolio holdings may have changed
subsequently. Nothing in this report is a recommendation to
purchase or sell securities.
* Total return includes the change in share price and
reinvestment of capital gain distributions and dividends.
(+) The inception date of these Institutional Class shares is
1/2/91.
(++) Performance figures for the Service Class, first offered to
the public on 1/1/95, include the historical performance of
the Institutional Class from the Funds' inception (1/2/91)
up to 12/31/94. Performance figures for the Sweep Shares
Class, first offered to the public on 12/8/98, include the
historical performance of the Service Class from the Service
Class's inception (1/1/95) up to 12/7/98. Performance
figures for these classes after these dates will vary based
on differences in their expense structures.
(sec.) Performance figures and inception dates for the MainStay
Institutional International Equity and MainStay
Institutional International Bond Funds include the
historical performance of the predecessor subaccounts, whose
inception dates were 7/31/92 and 1/31/90, respectively.
These Funds commenced operations on 1/1/95. MacKay Shields
LLC, the Funds' investment subadvisor, served as investment
advisor to the Separate Accounts, and the investment
objectives, policies, restrictions, guidelines, and
management style of the Separate Accounts were substantially
similar to those of the respective Funds. Performance
figures for the period prior to 1/1/95 have been calculated
using the Separate Accounts' expense structures, which
generally were higher than the expense structure of the
Funds. The Separate Accounts were not registered under the
Investment Company Act of 1940 (1940 Act) and therefore were
not subject to certain investment restrictions imposed under
the 1940 Act. If the Separate Accounts had been registered
under the 1940 Act, the Separate Accounts' performance may
have been adversely affected.
(II) MainStay Institutional Money Market Fund had an effective
7-day yield with a current 7-day yield of 5.81% and 5.65%,
respectively, for the Institutional Class; 5.55% and 5.40%,
respectively, for the Service Class; and 5.29% and 5.15%,
respectively, for the Sweep Shares Class; all as of 4/30/00.
These yields reflect certain expense limitations. Had these
expenses not been limited, the effective 7-day yield and the
current 7-day yield would have been 5.74% and 5.58%,
respectively, for the Institutional Class; 5.48% and 5.33%,
respectively, for the Service Class; and 5.21% and 5.08%,
respectively, for the Sweep Shares Class. These expense
limitations are voluntary and may be terminated or revised
at any time.
Investments in MainStay Institutional Money Market Fund are
not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the
Fund.
(#) Effective 5/1/99, MainStay Institutional Multi-Asset Fund
was renamed MainStay Institutional Asset Manager Fund.
<TABLE>
<CAPTION>
<S> <C>
<S> <C> <C>
NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
</TABLE>
<PAGE> 3
TABLE OF CONTENTS
Chairman's Letter 2
Portfolio Managements' Discussions and Analyses
and
Financial Statements 3
GROWTH FUNDS
Growth Equity Fund 3
Indexed Equity Fund 12
GROWTH AND INCOME FUNDS
Value Equity Fund 28
Asset Manager Fund 38
INTERNATIONAL FUNDS
International Equity Fund 68
EAFE Index Fund 82
International Bond Fund 98
INCOME FUNDS
Bond Fund 108
Indexed Bond Fund 118
Short-Term Bond Fund 128
Money Market Fund 138
Note 1 Organization and Business 148
Note 2 Significant Accounting Policies 149
Note 3 Fees and Related Party Policies 158
Note 4 Federal Income Tax 161
Note 5 Financial Investments 162
Note 6 Line of Credit 162
Note 7 Purchases and Sales of Securities 164
Note 8 Capital Share Transactions 164
<PAGE> 4
CHAIRMAN'S LETTER
--------------------------------------------------------------------------------
Report to shareholders for the period
November 1, 1999, through April 30, 2000.
As the twentieth century came to a close, the stock market continued to advance,
showing little regard for Y2K concerns. During November and December 1999,
equity investors saw strength in both the broad market and the small-cap sector.
Following a relatively smooth transition into the year 2000, volatility became
the order of the day. The Federal Reserve continued to tighten monetary policy
and many investors watched for signs of impending inflation. Technology stocks
soared to new highs through early March, but later gave up much of the ground
they had gained. Large-cap indices and averages declined early in the new year,
recovered in March, then plummeted in mid-April.
A number of forces and events can be traced as contributing factors. Strong
fourth-quarter earnings and the absence of Y2K computer problems had positive
effects but were overshadowed by the market's fixation on inflation reports and
the Federal Reserve. The unprecedented valuations of stocks, particularly in the
technology and biotech sectors, had been of concern for some time due to high
levels of margin debt and decreased liquidity. None of these circumstances
alone--but all of them together--helped precipitate the turmoil.
It is important to keep in mind that, as unsettling as the recent declines are,
they follow a period of tremendous stock price appreciation.
Through it all, MainStay(R) Institutional Funds Inc. remained focused on the
long-term. Each of our Funds follows a disciplined investment process that is
consistently applied in all market environments. We continued to seek
competitive performance, provide a high level of customer service, and reflect
the integrity our clients have come to expect from a leader in the mutual fund
industry.
While markets may rise and fall, we believe that consistent application of sound
investment disciplines is the best way to serve our clients and help them pursue
their individual investment goals.
This semiannual report outlines the events that affected your MainStay
Institutional Funds during the six months ended April 30, 2000. Whether you're
investing for your retirement, your business, or simply seeking to increase your
wealth, at MainStay Institutional Funds we look forward to serving you for many
years to come.
Sincerely,
/s/ STEPHEN C. ROUSSIN
Stephen C. Roussin
May 2000
2
<PAGE> 5
PORTFOLIO MANAGEMENT DISCUSSION AND ANALYSIS
GROWTH EQUITY FUND
--------------------------------------------------------------------------------
The Federal Reserve moved to raise interest rates three times during the six
months ended April 30, 2000, causing equity investors to face many ups and
downs. Despite strength in November and December 1999, the vast majority of
large-cap stocks generally declined in January and February, only to rebound in
March then plummet in mid-April 2000. Technology issues took a different course,
steadily climbing to record highs in March before selling off through mid-
April.
The different trajectories of more traditional large-cap issues and
technology-related "new economy" stocks may suggest that new dynamics are
affecting the market. Even so, all companies' growth prospects are affected by,
among other things, the cost of capital, the level of consumer spending, and the
outlook for inflation. What appears to have changed is the market's attitude
about which companies can successfully cope with shifting market conditions. The
uniform stock market decline that followed an unusually negative inflation
report in mid-April indicates that investors recognize limiting factors for both
old- and new-economy stocks.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Growth Equity
Fund returned 14.58% for Institutional Class shares and 14.42% for Service Class
shares. Both share classes underperformed the 20.88% return of the average
Lipper(1) large-cap growth fund for the same period. During the six-month
reporting period, both share classes more than doubled the 7.19% return of the
S&P 500 Index.(2)
Both of the Fund's share classes were rated four stars overall out of 3,606
domestic equity funds by Morningstar(3) as of April 30, 2000. Both share classes
were rated four stars out of 3,606 domestic equity funds for the three-year
period then ended and four stars out of 2,294 domestic equity funds for the
five-year period then ended.
CLOSING THE MILLENNIUM ON A POSITIVE NOTE
In the last two months of 1999, the Fund benefited from its strong commitment to
technology stocks, with more technology investments than the S&P 500 Index.
Among the Fund's strongest performers in November and December 1999 were Sun
Microsystems, EMC Corp., and Oracle. Additionally, JDS Uniphase, an optical
transmission technology company, which was a relatively new holding at the time,
showed outstanding performance in the last two months of 1999.
A STRONG FIRST CALENDAR QUARTER
During the first calendar quarter of 2000, the Fund returned more than twice as
much as the S&P 500. Within this period, the Fund benefited from advances in
capital goods stocks, including Corning and Tyco International. At the end of
March 2000, the Fund held three times the S&P 500 weighting in consumer
cyclicals, with stocks such as Time Warner, Circuit City, and Harley-Davidson
among the portfolio's stronger performers for the first calendar quarter of
2000.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent fund performance monitor. Its rankings are
based on total returns with capital gains and dividends reinvested.
(2) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P 500
is an unmanaged index and is widely regarded as the standard for measuring
large-cap U.S. stock market performance. Returns assume the reinvestment of
all income and capital gain distributions. An investment cannot be made
directly into an index.
(3) Morningstar, Inc. is an independent fund performance monitor. Its ratings
reflect historic risk-adjusted performance, taking fees and sales charges
into account, and may change monthly. Its ratings of one (low) to five
(high) stars are based on a fund's three-, five-, and 10-year average annual
returns (if applicable) in excess of 90-day Treasury bill returns, and a
risk factor that reflects fund performance below 90-day Treasury bill
returns. The top 10% of funds in a broad asset class receive five stars, the
next 22.5% receive four stars, the middle 35% receive three stars, the next
22.5% receive two stars, and the bottom 10% receive one star. Past
performance is no guarantee of future results.
3
<PAGE> 6
--------------------------------------------------------------------------------
Among technology stocks, the Fund benefited from strength in Texas Instruments,
Cisco Systems, and Intel, all of which contributed positively to the Fund's
performance from January through March of 2000.
FACING CHALLENGES IN APRIL
April 2000 was a difficult period for the Fund, as economic figures released
during the month suggested that the economy was not slowing despite a series of
rate hikes by the Federal Reserve. With investors uneasy about inflation reports
and various developments in the technology sector, old-economy stocks began to
outperform new-economy issues in April.
Technology stocks, the worst-performing sector in April 2000, led the market's
volatility. A disappointing earnings report at Motorola, the Microsoft antitrust
decision, and negative inflation reports combined to send technology stocks
spiraling downward for the month. The Fund's position in PE Biosystems fell 38%
in April on a mediocre earnings release. Cisco Systems, the Fund's largest
position at the end of April 2000, was down 11% for the one-month period.
Cyclical stocks also declined in April, with the Fund's position in Time Warner
losing 10% of its value during the month. The Fund's communication services
stocks also lost ground, with Global Crossing, Nextel, and VoiceStream Wireless
each down more than 20% in April. Despite these disappointments, we believe
these issues continue to have positive long-term prospects and we continue to
hold them in the Fund's portfolio.
LOOKING AHEAD
In the coming months, we believe that the Federal Reserve will continue to raise
interest rates, perhaps two more times before year end. Such efforts to slow
economic growth and keep inflation in check may eventually put pressure on
price-earnings multiples, reducing growth prospects in the equity market. Should
this happen, we still believe that careful stock selection may help identify
companies with the most appealing outlook.
Whatever the economy or the markets may bring, the Fund will continue to seek
long-term growth of capital. Dividend income, if any, will remain an incidental
consideration.
RUDOLPH C. CARRYL
EDMUND C. SPELMAN
Portfolio Managers
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. Stocks of growth companies may decline significantly if earnings
expectations--which are generally higher than expectations for nongrowth
companies--are not reached. Growth stocks typically lack the dividend yield that
can cushion stock prices in down markets.
4
<PAGE> 7
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
GROWTH EQUITY FUND VS S&P 500 INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX GROWTH EQUITY FUND
------------- ------------------
<S> <C> <C>
1/2/91 $250000.00000 $250000.00000
91 $326169.00000 $417500.00000
92 $351004.00000 $441009.00000
93 $386397.00000 $483314.00000
94 $391491.00000 $472535.00000
95 $538653.00000 $651552.00000
96 $662317.00000 $792393.00000
97 $883274.00000 $988384.00000
98 $1.13568e+006 $1.38870e+006
99 $1.37482e+006 $1.74060e+006
00 as of 4/30/00 $1.36410e+006 $1.74965e+006
</TABLE>
Source: Lipper Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
GROWTH EQUITY FUND VS S&P 500 INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX GROWTH EQUITY FUND
------------- ------------------
<S> <C> <C>
1/2/91 $250000.00000 $250000.00000
91 $326169.00000 $417500.00000
92 $351004.00000 $441009.00000
93 $386397.00000 $483314.00000
94 $391491.00000 $472535.00000
95 $538653.00000 $649752.00000
96 $662317.00000 $788082.00000
97 $883274.00000 $981124.00000
98 $1.13568e+006 $1.37529e+006
99 $1.37482e+006 $1.71952e+006
00 as of 4/30/00 $1.36410e+006 $1.72685e+006
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period
One year Five years Since inception
--------------------------------------------------------------------------------------------------------
Growth Equity Fund Institutional Class 14.58% 22.23% 27.57% 23.17%
Growth Equity Fund Service Class(+) 14.42 21.95 27.27 23.00
Average Lipper large-cap growth
fund(++) 20.88 30.29 27.35 21.19
S&P 500 Index(sec.) 7.19 10.13 25.26 20.28
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31
1991 1992 1993 1994 1995 1996 1997 1998
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN* 67% 5.63% 9.59% -2.23% 37.88% 21.62% 24.73% 40.50%
<CAPTION>
TEN SIX
MONTHS MONTHS
ENDED ENDED
OCTOBER 31 APRIL 30
1999 2000
---- ----
<S> <C> <C>
TOTAL RETURN 9.96% 14.58%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized
basis of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class
from the Fund's inception (1/2/91) up to 12/31/94. Performance figures
for these two classes will vary after this date based on differences in
their expense structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P
500 is an unmanaged index and is widely regarded as the standard for
measuring large-cap U.S. stock market performance. Returns assume the
reinvestment of all income and capital gain distributions. An investment
cannot be made directly into an index.
5
<PAGE> 8
GROWTH EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (99.6%)+
SHARES VALUE
---------------------------
<S> <C> <C>
BIOTECHNOLOGY (1.5%)
Genentech, Inc. (a).......... 120,000 $ 14,040,000
MedImmune, Inc. (a).......... 32,600 5,213,963
--------------
19,253,963
--------------
BROADCAST/MEDIA (7.1%)
AMFM Inc. (a)................ 233,000 15,465,375
CBS Corp. (a)................ 421,900 24,786,625
Clear Channel
Communications, Inc. (a).... 298,000 21,456,000
Comcast Corp. Class A (a).... 326,700 13,088,419
USA Networks, Inc. (a)....... 566,200 13,022,600
--------------
87,819,019
--------------
COMMUNICATIONS--EQUIPMENT (9.5%)
Cisco Systems, Inc. (a)...... 804,100 55,746,725
JDS Uniphase Corp. (a)....... 142,000 14,732,500
Lucent Technologies Inc. .... 235,500 14,645,156
Nokia OYJ PLC ADR (b)........ 232,000 13,195,000
Tellabs, Inc. (a)............ 350,000 19,184,375
--------------
117,503,756
--------------
COMPUTER SOFTWARE & SERVICES (6.8%)
Microsoft Corp. (a).......... 465,000 32,433,750
Oracle Corp. (a)............. 640,474 51,197,890
--------------
83,631,640
--------------
COMPUTER SYSTEMS (8.3%)
Compaq Computer Corp. ....... 207,100 6,057,675
EMC Corp. (a)................ 347,000 48,211,312
Sun Microsystems, Inc. (a)... 519,800 47,789,113
--------------
102,058,100
--------------
ELECTRIC POWER COMPANIES (2.4%)
AES Corp. (The) (a).......... 328,800 29,571,450
--------------
ELECTRICAL EQUIPMENT (1.8%)
General Electric Co. ........ 138,500 21,779,125
--------------
ELECTRONICS--INSTRUMENTATION (0.5%)
PE Corp-PE Biosystems Group 100,000 6,000,000
--------------
ELECTRONICS--SEMICONDUCTORS (11.7%)
Analog Devices, Inc. (a)..... 147,400 11,322,163
Applied Materials, Inc. (a).. 128,600 13,093,087
Intel Corp. ................. 359,800 45,627,138
Motorola, Inc. .............. 218,200 25,979,437
Texas Instruments Inc. ...... 298,800 48,667,050
--------------
144,688,875
--------------
ENTERTAINMENT (2.2%)
Time Warner Inc. ............ 298,200 26,819,362
--------------
FINANCE (2.6%)
Citigroup Inc. .............. 534,895 31,792,822
--------------
</TABLE>
<TABLE>
SHARES VALUE
---------------------------
<CAPTION>
<S> <C> <C>
HEALTH CARE--DRUGS (2.8%)
Merck & Co., Inc. ........... 245,300 $ 17,048,350
Schering-Plough Corp. ....... 430,700 17,362,594
--------------
34,410,944
--------------
HEALTH CARE--MEDICAL PRODUCTS (4.0%)
Guidant Corp. (a)............ 391,400 22,456,575
Medtronic, Inc. ............. 522,400 27,132,150
--------------
49,588,725
--------------
HEALTH CARE--MISCELLANEOUS (2.1%)
Amgen Inc. (a)............... 326,900 18,306,400
Bristol-Myers Squibb Co. .... 141,700 7,430,394
--------------
25,736,794
--------------
HOUSEHOLD PRODUCTS (2.0%)
Colgate-Palmolive Co. ....... 431,900 24,672,287
--------------
INSURANCE (3.1%)
American International Group,
Inc. ....................... 218,762 23,995,457
Marsh & McLennan Cos.,
Inc. ....................... 142,900 14,084,581
--------------
38,080,038
--------------
INVESTMENT BANK/BROKERAGE (0.9%)
Goldman Sachs Group, Inc.
(The)....................... 123,400 11,507,050
--------------
LEISURE TIME (2.6%)
Harley-Davidson, Inc. ....... 797,800 31,762,413
--------------
MANUFACTURING (6.4%)
Corning Inc. ................ 229,000 45,227,500
Tyco International Ltd. ..... 738,600 33,929,438
--------------
79,156,938
--------------
NATURAL GAS DISTRIBUTORS
& PIPELINES (1.6%)
Enron Corp. ................. 289,900 20,202,406
--------------
PERSONAL LOANS (1.4%)
Providian Financial Corp. ... 195,550 17,220,622
--------------
RETAIL (11.0%)
Bed Bath & Beyond Inc. (a)... 409,400 15,019,862
Circuit City Stores-Circuit
City Group.................. 476,400 28,018,275
CVS Corp. ................... 230,000 10,005,000
Home Depot, Inc. (The)....... 549,750 30,820,359
Kohl's Corp. (a)............. 760,000 36,480,000
Staples, Inc. (a)............ 831,000 15,840,938
--------------
136,184,434
--------------
RETAIL--INTERNET (0.4%)
Priceline.com Inc. (a)....... 69,300 4,383,225
--------------
SPECIALIZED SERVICES (1.4%)
Omnicom Group Inc. .......... 193,300 17,602,381
--------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
6
<PAGE> 9
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
---------------------------
<S> <C> <C>
TELECOMMUNICATIONS (4.0%)
AT&T Corp. .................. 190,000 $ 6,044,375
Global Crossing Ltd. (a)..... 219,100 6,901,650
MCI WorldCom, Inc. (a)....... 613,632 27,881,904
Nextel Communications Inc.
Class A (a)................. 66,000 7,222,875
VoiceStream Wireless
Corp. (a)................... 19,000 1,881,000
--------------
49,931,804
--------------
TELEPHONE (1.5%)
ALLTEL Corp. ................ 272,500 18,155,313
--------------
Total Common Stocks (Cost
$648,261,600)............... 1,229,513,486
--------------
<CAPTION>
SHORT-TERM INVESTMENT (0.9%)
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
COMMERCIAL PAPER (0.9%)
UBS Finance Delaware LLC
6.04%, due 5/1/00........... $11,430,000 11,426,164
--------------
Total Short-Term Investment
(Cost $11,426,164).......... 11,426,164
--------------
Total Investments
(Cost $659,687,764) (c)..... 100.5% 1,240,939,650(d)
Liabilities in Excess of
Cash, and Other Assets...... (0.5) (6,340,289)
----------- --------------
Net Assets................... 100.0% $1,234,599,361
=========== ==============
</TABLE>
------------
(a) Non-income producing security.
(b) ADR--American Depository Receipt.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At April 30, 2000, net unrealized appreciation was $581,251,886, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $610,469,683 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $29,217,797.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
7
<PAGE> 10
GROWTH EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $659,687,764)........................... $1,240,939,650
Cash........................................... 1,244
Receivables:
Investment securities sold................... 11,135,000
Dividends.................................... 310,707
Fund shares sold............................. 281,916
--------------
Total assets............................. 1,252,668,517
--------------
LIABILITIES:
Payables:
Investment securities purchased.............. 17,029,247
MainStay Management.......................... 792,290
Transfer agent............................... 75,569
Custodian.................................... 17,980
Fund shares redeemed......................... 7,488
Accrued expenses............................... 146,582
--------------
Total liabilities........................ 18,069,156
--------------
Net assets..................................... $1,234,599,361
==============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class.......................... $ 31,592
Institutional Service Class.................. 668
Additional paid-in capital..................... 548,661,302
Accumulated net investment loss................ (2,737,216)
Accumulated undistributed net realized gain on
investments.................................. 107,391,129
Net unrealized appreciation on investments..... 581,251,886
--------------
Net assets..................................... $1,234,599,361
==============
Institutional Class
Net assets applicable to outstanding shares.... $1,209,427,003
==============
Shares of capital stock outstanding............ 31,591,935
==============
Net asset value per share outstanding.......... $ 38.28
==============
Institutional Service Class
Net assets applicable to outstanding shares.... $ 25,172,358
==============
Shares of capital stock outstanding............ 667,702
==============
Net asset value per share outstanding.......... $ 37.70
==============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................ $ 2,311,106
Interest..................................... 427,626
--------------
Total income............................. 2,738,732
--------------
Expenses:
Management................................... 4,996,541
Transfer agent............................... 245,198
Professional................................. 54,260
Custodian.................................... 46,623
Shareholder communication.................... 39,247
Service...................................... 31,646
Directors.................................... 11,228
Registration................................. 8,378
Miscellaneous................................ 42,827
--------------
Total expenses........................... 5,475,948
--------------
Net investment loss............................ (2,737,216)
--------------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments............... 107,394,603
Net change in unrealized appreciation on
investments.................................. 53,168,169
--------------
Net realized and unrealized gain on
investments.................................. 160,562,772
--------------
Net increase in net assets resulting from
operations................................... $ 157,825,556
==============
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $7,833.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
8
<PAGE> 11
MAINSTAY
INSTITUTIONAL FUNDS INC.
GROWTH EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment loss..................................... $ (2,737,216) $ (4,279,422) $ (2,571,953)
Net realized gain on investments........................ 107,394,603 100,178,405 62,407,353
Net change in unrealized appreciation on investments.... 53,168,169 2,256,265 227,097,694
-------------- -------------- --------------
Net increase in net assets resulting from operations.... 157,825,556 98,155,248 286,933,094
-------------- -------------- --------------
Distributions to shareholders:
From net realized gain on investments:
Institutional Class................................... (97,923,006) (9,645,711) (60,369,694)
Institutional Service Class........................... (2,258,147) (241,486) (994,776)
-------------- -------------- --------------
Total distributions to shareholders................. (100,181,153) (9,887,197) (61,364,470)
-------------- -------------- --------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 86,056,771 181,040,640 135,442,134
Institutional Service Class........................... 3,035,031 12,746,881 3,436,490
Net asset value of shares issued to shareholders in
reinvestment of distributions:
Institutional Class................................... 97,916,401 9,645,054 60,366,383
Institutional Service Class........................... 2,244,713 227,218 900,466
-------------- -------------- --------------
189,252,916 203,659,793 200,145,473
Cost of shares redeemed:
Institutional Class................................... (80,684,296) (202,660,461) (142,993,936)
Institutional Service Class........................... (7,356,421) (4,349,099) (2,633,729)
-------------- -------------- --------------
Increase (decrease) in net assets derived from capital
share transactions.................................. 101,212,199 (3,349,767) 54,517,808
-------------- -------------- --------------
Net increase in net assets............................ 158,856,602 84,918,284 280,086,432
NET ASSETS:
Beginning of period....................................... 1,075,742,759 990,824,475 710,738,043
-------------- -------------- --------------
End of period............................................. $1,234,599,361 $1,075,742,759 $ 990,824,475
============== ============== ==============
Accumulated net investment loss at end of period.......... (2,737,216) -- --
============== ============== ==============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
9
<PAGE> 12
GROWTH EQUITY FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 36.45 $ 35.99 $ 33.48 $ 33.13 $ 25.43 $ 25.24
---------- ---------- ---------- ---------- ---------- ----------
Net investment income
(loss)..................... (0.09)(a) (0.13)(a) (0.14)(a) (0.21)(a) (0.09)(a) (0.16)(a)
Net realized and unrealized
gain (loss) on
investments................ 5.33 5.25 3.45 3.41 10.35 10.26
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations................. 5.24 5.12 3.31 3.20 10.26 10.10
---------- ---------- ---------- ---------- ---------- ----------
Less dividends and
distributions:
From net investment income.. -- -- -- -- -- --
From net realized gain on
investments................ (3.41) (3.41) (0.34) (0.34) (2.21) (2.21)
In excess of net investment
income..................... -- -- -- -- -- --
In excess of net realized
gain on investments........ -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total dividends and
distributions.............. (3.41) (3.41) (0.34) (0.34) (2.21) (2.21)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of
period..................... $ 38.28 $ 37.70 $ 36.45 $ 35.99 $ 33.48 $ 33.13
========== ========== ========== ========== ========== ==========
Total investment return..... 14.58%(c) 14.42%(c) 9.96%(c) 9.74%(c) 40.50% 40.18%
Ratios (to average net
assets)/Supplemental Data:
Net investment income
(loss)................... (0.45%)+ (0.70%)+ (0.49%)+ (0.74%)+ (0.31%) (0.56%)
Net expenses............... 0.91%+ 1.16%+ 0.93%+ 1.18%+ 0.94% 1.19%
Portfolio turnover rate..... 32% 32% 27% 27% 29% 29%
Net assets at end of period
(in 000's)................. $1,209,427 $ 25,172 $1,049,756 $ 25,987 $ 975,010 $ 15,814
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Per share data based on average shares outstanding during the period.
(b) Less than one cent per share.
(c) Total return is not annualized.
(d) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
10
<PAGE> 13
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(d) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 21.99 $ 21.88 $ 18.84 $ 18.80 $ 13.68 $ 13.68 $ 14.40
---------- ---------- ---------- ---------- ---------- ---------- ----------
(0.08)(a) (0.14)(a) (0.06)(a) (0.11)(a) 0.02 (0.01) 0.01
5.45 5.43 4.14 4.12 5.16 5.14 (0.33)
---------- ---------- ---------- ---------- ---------- ---------- ----------
5.37 5.29 4.08 4.01 5.18 5.13 (0.32)
---------- ---------- ---------- ---------- ---------- ---------- ----------
-- -- -- -- (0.02) (0.01) (0.01)
(1.93) (1.93) (0.93) (0.93) -- -- (0.39)
-- -- -- -- (0.00)(b) (0.00)(b) --
-- -- -- -- (0.00)(b) (0.00)(b) (0.00)(b)
---------- ---------- ---------- ---------- ---------- ---------- ----------
(1.93) (1.93) (0.93) (0.93) (0.02) (0.01) (0.40)
---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 25.43 $ 25.24 $ 21.99 $ 21.88 $ 18.84 $ 18.80 $ 13.68
========== ========== ========== ========== ========== ========== ==========
24.73% 24.50% 21.62% 21.29% 37.88% 37.50% (2.23%)
(0.31%) (0.56%) (0.27%) (0.52%) 0.12% (0.13%) 0.04%
0.93% 1.18% 0.92% 1.17% 0.93% 1.18% 0.92%
36% 36% 22% 22% 33% 33% 37%
$ 700,070 $ 10,668 $ 541,212 $ 6,842 $ 412,129 $ 2,729 $ 284,388
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
11
<PAGE> 14
INDEXED EQUITY FUND
--------------------------------------------------------------------------------
For more than half of the six months ended April 30, 2000, the stock market's
primary focus was on "new economy" stocks. Technology, media, and
telecommunications stocks posted strong gains, not only domestically, but around
the globe. Investors enamored with these sectors seemed to pay little attention
to earnings and price multiples.
In March and April 2000, however, the market returned its attention to more
traditional "old economy" stocks that appeared cheap relative to
technology-related issues. The Federal Reserve remained intent on fighting
inflation and raised the federal funds rate three times from November 1999
through April 2000. Recent data suggest that U.S. economic expansion is
continuing at a rapid pace, which some believe may lead to additional tightening
moves.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Indexed Equity
Fund returned 7.03% for Institutional Class shares and 6.88% for Service Class
shares. Both share classes outperformed the 6.83% return of the average
Lipper(1) S&P 500 Index(2) objective fund and underperformed the 7.19% return
for the S&P 500 Index over the same period. Investors should expect the Fund to
lag the Index somewhat, since the Fund faces real-world fees and expenses that a
hypothetical index does not.
Both of the Fund's share classes were rated four stars overall out of 3,606
domestic equity funds by Morningstar(3) as of April 30, 2000. Both share classes
were rated four stars out of 3,606 domestic equity funds for the three-year
period then ended and four stars out of 2,294 domestic equity funds for the
five-year period then ended.
BEST AND WORST PERFORMERS
During the reporting period, the three best-performing industries in the S&P 500
Index were all "new economy" components.(4) Electronic instruments advanced
90.76%, electronic semiconductors gained 68.99%, and communications equipment
rose 49.42% for the six months ended April 30, 2000. Oil and gas drilling
companies were also strong, returning 47.31% over the same period. During the
reporting period, the worst-performing industry in the Index was life insurance
(-36%), followed by containers--metal and glass (-35%), and hotels (-32%).
The five top-performing stocks in the S&P 500 Index in terms of total return
were all technology related. They were Advanced Micro Devices (+332%), Network
Appliance (+300%), Oracle (+212%), Teradyne (+189%), and Analog Devices (+174%).
The worst-performing stocks in the Index during this period were Conseco (-77%),
Parametric Technology (-57%), McDermott International (-57%), Compuware (-53%),
and CMS Energy (-49%).
While mergers, acquisitions, spin-offs, and other corporate actions continue to
necessitate small changes in the S&P 500 Index, there were few significant
shifts during the Fund's semiannual reporting period.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent fund performance monitor. Its rankings are
based on total returns with capital gains and dividends reinvested.
(2) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. and has been
licensed for use by Monitor Capital Advisors LLC. S&P does not sponsor,
endorse, sell, or promote the Fund or represent the advisability of
investing in MainStay Institutional Indexed Equity Fund. The S&P 500 is an
unmanaged index and is widely regarded as the standard for measuring
large-cap U.S. stock market performance. Returns assume the reinvestment of
all income and capital gain distributions. An investment cannot be made
directly into an index.
(3) Morningstar, Inc. is an independent fund performance monitor. Its ratings
reflect historic risk-adjusted performance, taking fees and sales charges
into account, and may change monthly. Its ratings of one (low) to five
(high) stars are based on a fund's three-, five-, and 10-year average annual
returns (if applicable) in excess of 90-day Treasury bill returns, and a
risk factor that reflects fund performance below 90-day Treasury bill
returns. The top 10% of funds in a broad asset class receive five stars, the
next 22.5% receive four stars, the middle 35% receive three stars, the next
22.5% receive two stars, and the bottom 10% receive one star. Past
performance is no guarantee of future results.
(4) All total returns shown for sectors and individual securities reflect the
performance of the S&P 500 Index, not the Fund. Actual Fund results may
differ within appropriate tracking parameters.
12
<PAGE> 15
The growth of technology-related issues has continued to increase the weighting
of "new economy" sectors within the Index, which has been the most significant
trend influencing S&P 500 Index weightings in recent years.
LOOKING AHEAD
The stock market continues to be heavily influenced by inflation indicators,
economic growth rates, and corporate earnings reports. As of April 30, 2000,
many investors believed that the Federal Reserve would continue to seek to slow
the economy and curb inflation with additional tightening moves, possibly at a
more aggressive pace.
Whatever happens in the economy or the markets, the Fund will continue to seek
to provide investment results that correspond to the total-return performance
(reflecting reinvestment of dividends) of common stocks in the aggregate, as
represented by the S&P 500 Index.
JEFFERSON C. BOYCE
STEPHEN B. KILLIAN
Portfolio Managers
Monitor Capital Advisors LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
13
<PAGE> 16
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INDEXED EQUITY FUND VS S&P 500 INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX INDEXED EQUITY FUND
------------- -------------------
<S> <C> <C>
1/2/91 $ 250,000 $ 250,000
91 326,169 324,500
92 351,004 347,828
93 386,397 380,544
94 391,491 383,975
95 538,653 525,597
96 662,317 644,201
97 883,274 856,036
98 1,135,680 1,101,020
99 1,374,820 1,330,380
00 as of 4/30/00 1,364,100 1,317,470
</TABLE>
Source: Lipper Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
[C]
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INDEXED EQUITY FUND VS S&P 500 INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX SERVICE CLASS SHARES
------------- --------------------
<S> <C> <C>
1/21/91 $ 250,000 $ 250,000
91 326,169 324,500
92 351,004 347,828
93 386,397 380,544
94 391,491 383,975
95 538,653 524,887
96 662,317 641,470
97 883,274 859,611
98 1,135,680 1,090,810
99 1,374,820 1,315,290
00 as of 4/30/00 1,364,100 1,301,100
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period
One year Five years Since inception
--------------------------------------------------------------------------------------------------------------
Indexed Equity Fund Institutional Class 7.03% 9.91% 24.90% 19.48%
Indexed Equity Fund Service Class(+) 6.88 9.63 24.59 19.32
Average Lipper S&P 500 Index objective
fund(++) 6.83 9.46 24.68 19.77
S&P 500 Index(sec.) 7.19 10.13 25.26 20.28
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
TEN
MONTHS
ENDED
OCTOBER 31
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN* 29.8% 7.19% 9.41% 0.90% 36.88% 22.57% 32.88% 28.62% 11.80%
<CAPTION>
SIX
MONTHS
ENDED
APRIL 30
2000
----
<S> <C>
TOTAL RETURN* 7.03%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized
basis of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class
from the Fund's inception (1/2/91) up to 12/31/94. Performance figures
for these two classes will vary after this date based on differences in
their expense structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P
500 is an unmanaged index and is widely regarded as the standard for
measuring large-cap U.S. stock market performance. Returns assume the
reinvestment of all income and capital gain distributions. An investment
cannot be made directly into an index.
14
<PAGE> 17
MAINSTAY
INSTITUTIONAL FUNDS INC.
INDEXED EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (96.8%)+
SHARES VALUE
-----------------------------
<S> <C> <C>
AEROSPACE/DEFENSE (0.9%)
Boeing Co. (The)........... 105,349 $ 4,181,038
General Dynamics Corp. .... 24,123 1,411,196
Goodrich (B.F.) Co.
(The)..................... 13,362 425,914
Lockheed Martin Corp. ..... 48,085 1,196,114
Northrop Grumman Corp. .... 8,342 591,239
Raytheon Co. Class B....... 40,951 908,600
Rockwell International
Corp. .................... 23,213 914,012
United Technologies
Corp. .................... 57,624 3,583,493
--------------
13,211,606
--------------
AIRLINES (0.2%)
AMR Corp. (a).............. 18,856 642,283
Delta Air Lines, Inc. ..... 16,803 886,358
Southwest Airlines Co. .... 61,333 1,330,159
US Airways Group, Inc.
(a)....................... 9,045 251,564
--------------
3,110,364
--------------
ALUMINUM (0.3%)
Alcan Aluminum Ltd. ....... 27,760 909,140
Alcoa Inc. ................ 45,196 2,932,091
Reynolds Metals Co. ....... 7,780 517,370
--------------
4,358,601
--------------
AUTO PARTS & EQUIPMENT (0.2%)
Cooper Tire & Rubber Co. .. 9,225 124,537
Delphi Automotive Systems
Corp. .................... 68,535 1,310,732
Genuine Parts Co. ......... 21,790 571,988
Goodyear Tire & Rubber Co.
(The)..................... 19,014 525,262
--------------
2,532,519
--------------
AUTOMOBILES (1.0%)
Ford Motor Co. ............ 146,653 8,020,086
General Motors Corp. ...... 77,647 7,269,700
--------------
15,289,786
--------------
BANKS--MAJOR REGIONAL (3.0%)
AmSouth Bancorp............ 47,837 696,626
Bank of New York Co., Inc.
(The)..................... 89,224 3,663,761
Bank One Corp. ............ 139,333 4,249,656
BB&T Corp. ................ 41,891 1,115,348
Comerica Inc. ............. 19,120 810,210
Fifth Third Bancorp........ 36,590 2,309,744
Firstar Corp. ............. 119,300 2,967,588
FleetBoston Financial
Corp. .................... 112,563 3,988,951
Huntington Bancshares
Inc. ..................... 27,596 503,627
KeyCorp.................... 54,655 1,011,117
Mellon Financial Corp. .... 63,803 2,049,671
National City Corp. ....... 75,702 1,286,934
Northern Trust Corp. ...... 27,335 1,752,857
Old Kent Financial
Corp. .................... 14,981 451,303
PNC Financial Services
Group, Inc. (The)......... 35,646 1,555,057
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
BANKS--MAJOR REGIONAL (CONTINUED)
Regions Financial Corp. ... 27,383 $ 559,640
SouthTrust Corp. .......... 20,391 486,835
State Street Corp. ........ 19,634 1,902,044
Summit Bancorp............. 20,779 527,267
SunTrust Banks, Inc. ...... 38,794 1,968,795
Synovus Financial Corp. ... 32,839 609,574
Union Planters Corp. ...... 17,372 491,845
U.S. Bancorp............... 88,441 1,796,458
Wachovia Corp. ............ 24,736 1,550,638
Wells Fargo Co. ........... 200,236 8,222,191
--------------
46,527,737
--------------
BANKS--MONEY CENTER (1.5%)
Bank of America Corp. ..... 207,291 10,157,259
Chase Manhattan Corp.
(The)..................... 100,171 7,218,572
First Union Corp. ......... 119,962 3,823,789
Morgan (J.P.) & Co.,
Inc. ..................... 20,978 2,693,051
--------------
23,892,671
--------------
BANKS--SAVINGS & LOANS (0.2%)
Golden West Financial
Corp. .................... 19,608 669,123
Washington Mutual, Inc. ... 70,306 1,797,197
--------------
2,466,320
--------------
BEVERAGES--ALCOHOLIC (0.3%)
Anheuser-Busch Cos.,
Inc. ..................... 56,764 4,005,410
Brown-Forman Corp.
Class B................... 8,329 454,451
Coors (Adolph) Co.
Class B................... 4,526 230,826
--------------
4,690,687
--------------
BEVERAGES--SOFT DRINKS (1.4%)
Coca-Cola Co. (The) (c).... 299,515 14,095,925
Coca-Cola Enterprises
Inc. ..................... 51,787 1,103,710
PepsiCo, Inc. ............. 177,478 6,511,224
--------------
21,710,859
--------------
BROADCAST/MEDIA (1.2%)
CBS Corp. (a).............. 93,442 5,489,718
Clear Channel
Communications, Inc. (a).. 40,366 2,906,352
Comcast Corp. Special Class
A (a)..................... 112,398 4,502,945
MediaOne Group Inc. (a).... 73,714 5,574,621
--------------
18,473,636
--------------
BUILDING MATERIALS (0.2%)
Masco Corp. ............... 53,809 1,207,339
Owens Corning.............. 6,738 122,547
Sherwin-Williams Co.
(The)..................... 20,875 519,266
Vulcan Materials Co. ...... 12,264 537,317
--------------
2,386,469
--------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
15
<PAGE> 18
INDEXED EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
CHEMICALS (0.9%)
Air Products & Chemicals,
Inc. ..................... 28,055 $ 871,459
Dow Chemical Co. (The)..... 26,796 3,027,948
Du Pont (E.I.) De Nemours &
Co. ...................... 126,914 6,020,483
Eastman Chemical Co. ...... 9,471 495,452
Hercules Inc. ............. 12,148 189,053
Praxair, Inc. ............. 19,210 853,644
Rohm & Haas Co. ........... 25,570 910,931
Union Carbide Corp. ....... 16,150 952,850
--------------
13,321,820
--------------
CHEMICALS--DIVERSIFIED (0.2%)
Avery Dennison Corp. ...... 13,883 911,072
Engelhard Corp. ........... 15,194 266,845
FMC Corp. (a).............. 3,927 228,502
PPG Industries, Inc. ...... 21,288 1,157,535
--------------
2,563,954
--------------
CHEMICALS--SPECIALTY (0.0%) (b)
Grace (W.R.) & Co. (a)..... 8,352 108,576
Great Lakes Chemical
Corp. .................... 7,040 189,640
Sigma-Aldrich Corp. ....... 12,285 360,872
--------------
659,088
--------------
COMMUNICATIONS--EQUIPMENT
MANUFACTURERS (8.0%)
ADC Telecommunications,
Inc. (a).................. 36,411 2,211,968
Andrew Corp. (a)........... 9,890 291,137
Cabletron Systems, Inc.
(a)....................... 22,519 515,122
Cisco Systems, Inc. (a).... 830,033 57,544,611
Comverse Technology, Inc.
(a)....................... 18,602 1,659,066
Lucent Technologies
Inc. ..................... 386,629 24,043,491
Network Appliance, Inc.
(a)....................... 37,046 2,739,089
Nortel Networks Corp. ..... 173,784 19,681,038
QUALCOMM Inc. (a).......... 89,529 9,708,301
Scientific-Atlanta,
Inc. ..................... 19,130 1,244,646
Tellabs, Inc. (a).......... 48,890 2,679,783
3Com Corp. (a)............. 41,925 1,653,417
--------------
123,971,669
--------------
COMPUTER SOFTWARE & SERVICES (8.2%)
Adobe Systems Inc. ........ 14,373 1,738,235
America Online, Inc. (a)... 272,803 16,317,029
Autodesk, Inc. ............ 7,092 272,156
Automatic Data
Processing, Inc. ......... 76,490 4,116,118
BMC Software, Inc. (a)..... 28,687 1,342,910
Ceridian Corp. (a)......... 17,577 381,201
Citrix Systems, Inc. (a)... 21,278 1,299,288
Computer Associates
International, Inc. ...... 71,345 3,981,943
Computer Sciences Corp.
(a)....................... 20,233 1,650,254
Compuware Corp. (a)........ 45,112 566,720
Electronic Data Systems
Corp. .................... 57,209 3,933,119
Equifax Inc. .............. 17,630 430,833
First Data Corp. .......... 51,007 2,483,403
Microsoft Corp. (a)(c)..... 631,418 44,041,405
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES (CONTINUED)
Novell, Inc. (a)........... 40,600 $ 796,775
Oracle Corp. (a)........... 342,664 27,391,704
Parametric Technology Corp.
(a)....................... 33,728 275,096
Paychex, Inc. ............. 30,004 1,578,960
PeopleSoft, Inc. (a)....... 30,399 423,686
Sabre Holdings Corp. (a)... 15,744 550,056
Shared Medical Systems
Corp. .................... 3,164 131,108
VERITAS Software Corp.
(a)....................... 47,373 5,081,493
Yahoo! Inc. (a)............ 63,827 8,313,467
--------------
127,096,959
--------------
COMPUTER SYSTEMS (6.9%)
Apple Computer, Inc. (a)... 19,527 2,422,568
Compaq Computer Corp. ..... 205,468 6,009,939
Dell Computer Corp. (a).... 311,378 15,607,822
EMC Corp. (a).............. 122,717 17,049,993
Gateway, Inc. (a).......... 38,446 2,124,141
Hewlett-Packard Co. ....... 121,650 16,422,750
International Business
Machines Corp. ........... 218,625 24,404,016
Lexmark International
Group, Inc. (a)........... 15,735 1,856,730
NCR Corp. (a).............. 11,700 451,912
Seagate Technology, Inc.
(a)....................... 26,240 1,333,320
Silicon Graphics, Inc.
(a)....................... 23,128 166,233
Sun Microsystems, Inc.
(a)....................... 191,509 17,606,859
Unisys Corp. (a)........... 37,027 858,564
--------------
106,314,847
--------------
CONGLOMERATES (0.1%)
Textron Inc. .............. 18,422 1,141,013
--------------
CONTAINERS--METAL & GLASS (0.0%) (b)
Ball Corp. ................ 3,794 119,511
Crown Cork & Seal Co.,
Inc. ..................... 14,951 242,954
Owens-Illinois, Inc. (a)... 19,212 259,362
--------------
621,827
--------------
CONTAINERS--PAPER (0.1%)
Bemis Co., Inc. ........... 6,463 237,919
Pactiv Corp. (a)........... 20,803 170,325
Temple-Inland Inc. ........ 6,794 340,549
--------------
748,793
--------------
COSMETICS/PERSONAL CARE (0.4%)
Alberto-Culver Co. Class
B......................... 6,916 163,391
Avon Products, Inc. ....... 29,478 1,223,337
Gillette Co. (The)......... 131,634 4,870,458
International Flavors &
Fragrances Inc. .......... 12,951 446,000
--------------
6,703,186
--------------
ELECTRIC POWER COMPANIES (1.6%)
Ameren Corp. .............. 16,756 614,736
American Electric Power
Co., Inc. ................ 23,507 860,944
Carolina Power & Light
Co. ...................... 19,449 711,104
Central & South West
Corp. .................... 25,880 561,273
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
16
<PAGE> 19
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
ELECTRIC POWER COMPANIES (CONTINUED)
Cinergy Corp. ............. 19,391 $ 518,709
CMS Energy Corp. .......... 14,377 273,163
Consolidated Edison,
Inc. ..................... 27,265 959,387
Constellation Energy Group,
Inc. ..................... 18,175 600,911
Dominion Resources,
Inc. ..................... 28,863 1,298,835
DTE Energy Co. ............ 17,644 575,636
Duke Energy Corp. ......... 44,285 2,546,388
Edison International....... 42,323 806,782
Entergy Corp. ............. 29,466 749,541
FirstEnergy Corp. ......... 28,625 728,148
Florida Progress Corp. .... 11,786 577,514
FPL Group, Inc. ........... 21,750 982,828
GPU, Inc. ................. 15,438 433,229
New Century Energies
Inc. ..................... 13,870 452,509
Niagara Mohawk Holdings
Inc. (a).................. 22,756 315,740
Northern States Power
Co. ...................... 18,598 405,669
PECO Energy Co. ........... 23,495 979,448
PG&E Corp. ................ 46,777 1,213,278
Pinnacle West Capital
Corp. .................... 10,368 364,176
PPL Corp. ................. 19,592 467,759
Public Service Enterprise
Group Inc. ............... 26,781 960,768
Reliant Energy, Inc. ...... 36,027 959,219
Southern Co. (The)......... 81,744 2,038,491
Texas Utilities Co. ....... 34,331 1,156,526
Unicom Corp. .............. 26,414 1,049,956
--------------
24,162,667
--------------
ELECTRICAL EQUIPMENT (4.6%)
Cooper Industries, Inc. ... 11,588 397,613
Emerson Electric Co. ...... 53,089 2,913,259
General Electric Co. (c)... 397,213 62,461,744
Grainger (W.W.), Inc. ..... 11,406 494,735
Molex Inc. ................ 23,585 1,295,701
Solectron Corp. (a)........ 72,170 3,378,458
Thomas & Betts Corp. ...... 6,983 215,164
--------------
71,156,674
--------------
ELECTRONICS--DEFENSE (0.0%) (b)
PerkinElmer, Inc. ......... 5,567 304,793
--------------
ELECTRONICS--INSTRUMENTATION (0.1%)
PE Corp.--PE Biosystems
Group..................... 25,023 1,501,380
Tektronix, Inc. ........... 5,762 333,476
--------------
1,834,856
--------------
ELECTRONICS--SEMICONDUCTORS (7.3%)
Adaptec, Inc. (a).......... 12,403 334,881
Advanced Micro Devices,
Inc. (a).................. 17,911 1,571,690
Altera Corp. (a)........... 24,200 2,474,450
Analog Devices, Inc. (a)... 42,404 3,257,157
Applied Materials, Inc.
(a)....................... 92,840 9,452,273
Conexant Systems, Inc.
(a)....................... 26,053 1,559,923
Intel Corp. ............... 405,244 51,390,005
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
ELECTRONICS--SEMICONDUCTORS (CONTINUED)
KLA-Tencor Corp. (a)....... 22,351 $ 1,673,531
Linear Technology Corp. ... 37,558 2,145,501
LSI Logic Corp. (a)........ 36,308 2,269,250
Micron Technology, Inc.
(a)....................... 32,818 4,569,906
Motorola, Inc. ............ 85,988 10,237,946
National Semiconductor
Corp. (a)................. 20,417 1,240,333
Teradyne, Inc. (a)......... 20,893 2,298,230
Texas Instruments Inc. .... 98,988 16,122,671
Xilinx, Inc. (a)........... 38,389 2,811,994
--------------
113,409,741
--------------
ENGINEERING & CONSTRUCTION (0.0%) (b)
Fluor Corp. ............... 9,257 310,688
--------------
ENTERTAINMENT (2.0%)
Seagram Co. Ltd. (The)..... 52,062 2,811,348
Time Warner Inc. .......... 156,074 14,036,906
Viacom Inc. Class B (a).... 84,017 4,568,424
Walt Disney Co. (The)...... 249,910 10,824,227
--------------
32,240,905
--------------
FINANCIAL--MISCELLANEOUS (4.2%)
AFLAC Inc. ................ 32,570 1,589,823
American Express Co. ...... 54,313 8,150,345
American General Corp. .... 30,715 1,720,040
Associates First Capital
Corp. Class A............. 88,761 1,969,385
Citigroup Inc. ............ 408,983 24,308,927
Fannie Mae................. 124,987 7,538,278
Franklin Resources Inc. ... 30,285 976,691
Freddie Mac................ 84,708 3,891,274
MBIA Inc. ................. 12,039 595,178
MBNA Corp. ................ 97,718 2,595,634
Morgan Stanley Dean Witter
& Co. .................... 138,184 10,605,622
Price (T. Rowe) Associates,
Inc. ..................... 15,748 600,393
SLM Holding Corp. ......... 20,020 626,876
--------------
65,168,466
--------------
FOOD (1.1%)
Bestfoods.................. 34,020 1,709,505
Campbell Soup Co. ......... 53,442 1,389,492
ConAgra, Inc. ............. 59,410 1,121,364
General Mills, Inc. ....... 37,291 1,356,460
Heinz (H.J.) Co. .......... 43,937 1,493,858
Hershey Foods Corp. ....... 17,095 775,686
Kellogg Co. ............... 49,390 1,206,968
Nabisco Group Holdings
Corp. .................... 39,605 509,914
Quaker Oats Co. (The)...... 16,475 1,073,964
Ralston-Ralston Purina
Group..................... 37,091 656,047
Sara Lee Corp. ............ 107,453 1,611,795
Unilever N.V. ............. 69,726 3,176,891
Wrigley (Wm.) Jr. Co. ..... 14,201 1,027,798
--------------
17,109,742
--------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
17
<PAGE> 20
INDEXED EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
FOOD & HEALTH CARE DISTRIBUTORS (0.3%)
Cardinal Health, Inc. ..... 33,023 $ 1,818,329
McKesson HBOC, Inc. ....... 33,805 570,460
SUPERVALU Inc. ............ 14,028 290,204
SYSCO Corp. ............... 40,317 1,516,927
--------------
4,195,920
--------------
GOLD & PRECIOUS METALS MINING (0.1%)
Barrick Gold Corp. ........ 47,463 797,972
Homestake Mining Co. ...... 31,642 189,852
Newmont Mining Corp. ...... 20,427 478,758
Placer Dome Inc. .......... 39,748 322,952
--------------
1,789,534
--------------
HARDWARE & TOOLS (0.1%)
Black & Decker Corp.
(The)..................... 10,612 446,367
Snap-on Inc. .............. 8,226 217,475
Stanley Works (The)........ 10,817 319,102
--------------
982,944
--------------
HEALTH CARE--DIVERSIFIED (3.6%)
Abbott Laboratories........ 184,932 7,108,324
Allergan, Inc. ............ 16,769 987,275
American Home Products
Corp. .................... 158,841 8,924,879
Bristol-Myers Squibb
Co. ...................... 240,905 12,632,456
Johnson & Johnson.......... 168,898 13,934,085
Mallinckrodt Inc. ......... 8,591 230,883
Warner-Lambert Co. ........ 103,966 11,832,630
--------------
55,650,532
--------------
HEALTH CARE--DRUGS (4.2%)
Lilly (Eli) & Co. ......... 132,539 10,246,921
Merck & Co., Inc. ......... 283,501 19,703,320
Pfizer Inc. ............... 470,871 19,835,441
Pharmacia Corp. ........... 151,954 7,588,203
Schering-Plough Corp. ..... 178,710 7,204,247
Watson Pharmaceuticals,
Inc. (a).................. 11,650 523,522
--------------
65,101,654
--------------
HEALTH CARE--HMOs (0.2%)
Aetna Inc. ................ 17,096 989,431
Humana Inc. (a)............ 20,479 157,432
UnitedHealth Group Inc.
(a)....................... 21,250 1,417,110
Wellpoint Health Networks
Inc. (a).................. 8,367 617,066
--------------
3,181,039
--------------
HEALTH CARE--HOSPITAL MANAGEMENT (0.2%)
Columbia/HCA Healthcare
Corp. .................... 69,257 1,969,496
Tenet Healthcare Corp.
(a)....................... 37,751 962,650
--------------
2,932,146
--------------
HEALTH CARE--MEDICAL PRODUCTS (1.0%)
Bard (C.R.), Inc. ......... 6,367 277,363
Bausch & Lomb Inc. ........ 6,969 420,754
Baxter International
Inc. ..................... 35,466 2,309,723
Becton, Dickinson & Co. ... 30,658 785,611
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
HEALTH CARE--MEDICAL PRODUCTS (CONTINUED)
Biomet, Inc. .............. 13,615 $ 485,885
Boston Scientific Corp.
(a)....................... 47,766 1,265,799
Guidant Corp. (a).......... 36,717 2,106,638
Medtronic, Inc. ........... 145,119 7,537,118
St. Jude Medical, Inc.
(a)....................... 10,345 322,635
--------------
15,511,526
--------------
HEALTH CARE--MISCELLANEOUS (0.6%)
ALZA Corp. (a)............. 12,258 540,118
Amgen Inc. (a)............. 124,769 6,987,064
Biogen, Inc. (a)........... 18,219 1,071,505
HEALTHSOUTH Corp. (a)...... 51,264 413,316
Manor Care, Inc. (a)....... 13,745 164,081
Quintiles Transnational
Corp. (a)................. 13,971 199,960
--------------
9,376,044
--------------
HEAVY DUTY TRUCKS & PARTS (0.2%)
Cummins Engine Co.,
Inc. ..................... 5,129 182,400
Dana Corp. ................ 20,293 616,400
Eaton Corp. ............... 8,715 732,060
ITT Industries, Inc. ...... 10,750 339,297
Navistar International
Corp. (a)................. 7,992 279,720
PACCAR Inc. ............... 9,452 449,561
--------------
2,599,438
--------------
HOMEBUILDING (0.0%) (b)
Centex Corp. .............. 7,184 173,314
Kaufman & Broad Home
Corp. .................... 4,943 95,153
Pulte Corp. ............... 5,238 112,617
--------------
381,084
--------------
HOTEL/MOTEL (0.2%)
Carnival Corp. ............ 74,727 1,858,834
Harrah's Entertainment,
Inc. (a).................. 15,582 320,405
Hilton Hotels Corp. ....... 43,943 373,519
Marriott International,
Inc.
Class A................... 30,045 961,440
--------------
3,514,198
--------------
HOUSEHOLD--FURNISHINGS & APPLIANCES (0.1%)
Armstrong World Industries,
Inc. ..................... 4,875 95,367
Leggett & Platt, Inc. ..... 24,528 524,286
Maytag Corp. .............. 10,919 376,023
Whirlpool Corp. ........... 9,191 598,564
--------------
1,594,240
--------------
HOUSEHOLD PRODUCTS (1.2%)
Clorox Co. (The)........... 28,617 1,051,675
Colgate-Palmolive Co. ..... 71,550 4,087,294
Fort James Corp. .......... 26,943 644,948
Kimberly-Clark Corp. ...... 67,384 3,912,484
Procter & Gamble Co.
(The)..................... 159,775 9,526,584
--------------
19,222,985
--------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
18
<PAGE> 21
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
HOUSEWARES (0.1%)
Fortune Brands, Inc. ...... 20,452 $ 511,300
Newell Rubbermaid Inc. .... 34,481 868,490
Tupperware Corp. .......... 7,062 133,296
--------------
1,513,086
--------------
INSURANCE BROKERS (0.3%)
Aon Corp. ................. 31,131 842,483
Marsh &
McLennan Cos., Inc. ...... 32,335 3,187,018
--------------
4,029,501
--------------
INSURANCE--LIFE (0.2%)
Conseco, Inc. ............. 39,421 214,351
Jefferson-Pilot Corp. ..... 13,086 871,037
Lincoln National Corp. .... 24,833 864,499
Torchmark Corp. ........... 16,270 407,767
UNUMProvident Corp. ....... 28,947 492,099
--------------
2,849,753
--------------
INSURANCE--MULTI-LINE (1.5%)
American International
Group, Inc. .............. 187,770 20,596,022
CIGNA Corp. ............... 20,431 1,629,372
Hartford Financial Services
Group, Inc. (The)......... 27,862 1,454,048
--------------
23,679,442
--------------
INSURANCE--PROPERTY & CASUALTY (0.5%)
Allstate Corp. (The)....... 98,376 2,324,133
Chubb Corp. (The).......... 21,338 1,357,630
Cincinnati Financial
Corp. .................... 19,850 800,203
Loews Corp. ............... 13,404 738,896
MGIC Investment Corp. ..... 13,315 636,624
Progressive Corp. (The).... 8,882 581,216
SAFECO Corp. .............. 16,762 370,859
St. Paul Cos., Inc.
(The)..................... 27,613 983,713
--------------
7,793,274
--------------
INVESTMENT BANK/BROKERAGE (0.8%)
Bear Stearns Cos., Inc.
(The)..................... 15,075 646,341
Lehman Brothers Holdings
Inc. ..................... 14,506 1,190,399
Merrill Lynch & Co.,
Inc. ..................... 44,713 4,557,931
Paine Webber Group Inc. ... 17,702 776,675
Schwab (Charles) Corp.
(The)..................... 99,512 4,428,284
--------------
11,599,630
--------------
LEISURE TIME (0.1%)
Brunswick Corp. ........... 11,351 217,797
Harley-Davidson, Inc. ..... 36,588 1,456,660
Mirage Resorts, Inc. (a)... 24,401 497,170
--------------
2,171,627
--------------
MACHINE TOOLS (0.0%) (b)
Milacron Inc. ............. 4,436 80,957
--------------
MACHINERY--DIVERSIFIED (0.3%)
Briggs & Stratton Corp. ... 2,781 106,721
Caterpillar Inc. .......... 42,981 1,695,063
Deere & Co. ............... 28,257 1,140,876
Ingersoll-Rand Co. ........ 20,296 952,644
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
MACHINERY--DIVERSIFIED (CONTINUED)
NACCO Industries, Inc.
Class A................... 985 $ 44,202
Thermo Electron Corp.
(a)....................... 19,273 373,414
Timken Co. (The)........... 7,401 136,919
--------------
4,449,839
--------------
MANUFACTURING--DIVERSIFIED (1.4%)
Crane Co. ................. 7,748 208,228
Danaher Corp. ............. 17,232 984,378
Dover Corp. ............... 24,667 1,253,392
Honeywell International
Inc. ..................... 96,066 5,379,696
Illinois Tool Works
Inc. ..................... 36,077 2,311,183
Johnson Controls, Inc. .... 10,399 658,387
Millipore Corp. ........... 5,316 381,091
Pall Corp. ................ 15,262 340,533
Parker-Hannifin Corp. ..... 13,133 610,684
Sealed Air Corp. (a)....... 10,266 571,046
Tyco International Ltd. ... 205,139 9,423,573
--------------
22,122,191
--------------
METALS--MINING (0.1%)
Freeport-McMoRan Copper &
Gold Inc. Class B (a)..... 19,954 192,057
Inco Ltd. (a).............. 23,461 366,578
Phelps Dodge Corp. ........ 9,379 433,779
--------------
992,414
--------------
MISCELLANEOUS (1.0%)
AES Corp. (The) (a)........ 25,149 2,261,838
American Greetings Corp.
Class A................... 8,340 151,163
Archer-Daniels-Midland
Co. ...................... 75,558 750,858
Corning Inc. .............. 33,460 6,608,350
Jostens, Inc. ............. 4,230 104,428
Minnesota Mining &
Manufacturing Co. ........ 48,441 4,190,146
TRW, Inc. ................. 14,649 856,966
--------------
14,923,749
--------------
NATURAL GAS DISTRIBUTORS & PIPELINES (0.8%)
Coastal Corp. (The)........ 25,909 1,300,308
Columbia Energy Group...... 10,313 647,141
Eastern Enterprises........ 2,609 158,823
El Paso Energy Corp. ...... 27,935 1,187,238
Enron Corp. ............... 85,947 5,989,432
NICOR Inc. ................ 5,806 196,678
ONEOK, Inc. ............... 3,557 89,814
Peoples Energy Corp. ...... 4,291 133,289
Sempra Energy.............. 24,678 458,085
Williams Cos., Inc.
(The)..................... 52,478 1,958,085
--------------
12,118,893
--------------
OFFICE EQUIPMENT & SUPPLIES (0.2%)
Pitney Bowes Inc. ......... 32,799 1,340,659
Xerox Corp. ............... 80,579 2,130,307
--------------
3,470,966
--------------
OIL & GAS DRILLING (0.0%) (b)
Rowan Cos., Inc. (a)....... 10,011 279,682
--------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
19
<PAGE> 22
INDEXED EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
OIL & GAS--EXPLORATION & PRODUCTION (0.3%)
Anadarko Petroleum Corp. .. 14,605 $ 634,405
Apache Corp. .............. 13,480 652,937
Burlington Resources
Inc. ..................... 25,805 1,014,459
Union Pacific Resources
Group, Inc. .............. 30,714 589,325
Unocal Corp. .............. 29,603 956,547
--------------
3,847,673
--------------
OIL & WELL--EQUIPMENT & SERVICES (0.6%)
Baker Hughes Inc. ......... 39,797 1,266,042
Halliburton Co. ........... 53,677 2,371,853
McDermott International,
Inc. ..................... 7,088 57,590
Schlumberger Ltd. ......... 66,613 5,100,058
Transocean Sedco Forex
Inc. ..................... 25,187 1,183,789
--------------
9,979,332
--------------
OIL--INTEGRATED DOMESTIC (0.5%)
Amerada Hess Corp. ........ 11,114 707,128
Ashland Inc. .............. 8,964 305,897
Conoco Inc. Class B........ 76,116 1,893,385
Kerr-McGee Corp. .......... 11,554 597,919
Occidental Petroleum
Corp. .................... 41,928 898,832
Phillips Petroleum Co. .... 30,740 1,458,229
Sunoco Inc. ............... 11,017 333,953
Tosco Corp. ............... 18,808 603,031
USX-Marathon Group......... 37,519 874,662
--------------
7,673,036
--------------
OIL--INTEGRATED INTERNATIONAL (3.7%)
Chevron Corp. ............. 79,611 6,776,886
Exxon Mobil Corp. ......... 419,098 32,558,676
Royal Dutch Petroleum Co.
ADR (d)................... 259,781 14,904,935
Texaco Inc. ............... 67,073 3,320,114
--------------
57,560,611
--------------
PAPER & FOREST PRODUCTS (0.4%)
Boise Cascade Corp. ....... 6,880 224,030
Champion International
Corp. .................... 11,783 774,732
Georgia-Pacific Group...... 20,937 769,435
International Paper Co. ... 50,019 1,838,198
Louisiana-Pacific Corp. ... 13,151 175,895
Mead Corp. (The)........... 12,335 429,412
Potlatch Corp. ............ 3,542 139,688
Westvaco Corp. ............ 12,192 376,428
Weyerhaeuser Co. .......... 28,776 1,537,717
Willamette Industries,
Inc. ..................... 13,433 512,973
--------------
6,778,508
--------------
PERSONAL LOANS (0.3%)
Capital One Financial
Corp. .................... 24,086 1,053,762
Countrywide Credit
Industries, Inc. ......... 13,577 375,065
Household International,
Inc. ..................... 58,652 2,448,721
Providian Financial
Corp. .................... 17,371 1,529,734
--------------
5,407,282
--------------
</TABLE>
<TABLE>
SHARES VALUE
-----------------------------
<CAPTION>
<S> <C> <C>
PHOTOGRAPHY/IMAGING (0.2%)
Eastman Kodak Co. ......... 38,407 $ 2,148,392
IKON Office Solutions,
Inc. ..................... 18,088 106,267
Polaroid Corp. ............ 5,336 107,720
--------------
2,362,379
--------------
POLLUTION CONTROL (0.1%)
Allied Waste Industries,
Inc. (a).................. 22,724 139,185
Waste Management, Inc. .... 74,000 1,174,750
--------------
1,313,935
--------------
PUBLISHING (0.1%)
Harcourt General Inc. ..... 8,724 326,059
McGraw-Hill Cos., Inc.
(The)..................... 24,136 1,267,140
Meredith Corp. ............ 6,423 178,640
--------------
1,771,839
--------------
PUBLISHING--NEWSPAPERS (0.3%)
Dow Jones & Co., Inc. ..... 11,144 722,967
Gannett Co., Inc. ......... 34,096 2,177,882
Knight-Ridder, Inc. ....... 9,463 464,278
New York Times Co. (The)
Class A................... 21,672 892,616
Tribune Co. ............... 28,961 1,125,859
--------------
5,383,602
--------------
RAILROADS (0.3%)
Burlington Northern Santa
Fe Corp. ................. 57,641 1,390,589
CSX Corp. ................. 26,468 554,174
Kansas City Southern
Industries, Inc. ......... 13,333 958,310
Norfolk Southern Corp. .... 46,317 816,337
Union Pacific Corp. ....... 30,217 1,272,891
--------------
4,992,301
--------------
RESTAURANTS (0.5%)
Darden Restaurants,
Inc. ..................... 16,028 295,516
McDonald's Corp. .......... 164,255 6,262,222
Tricon Global Restaurants,
Inc. (a).................. 18,710 638,479
Wendy's International,
Inc. ..................... 15,132 338,579
--------------
7,534,796
--------------
RETAIL STORES--APPAREL (0.4%)
Gap, Inc. (The)............ 102,669 3,773,086
Limited, Inc. (The)........ 25,956 1,172,887
TJX Cos., Inc. (The)....... 39,619 760,189
--------------
5,706,162
--------------
RETAIL STORES--DEPARTMENT (0.3%)
Dillard's, Inc. Class A.... 12,738 177,536
Federated Department
Stores, Inc. (a).......... 25,471 866,014
Kohl's Corp. (a)........... 39,772 1,909,056
May Department Stores Co.
(The)..................... 40,693 1,119,057
Nordstrom, Inc. ........... 17,382 483,437
Penney (J.C.) Co., Inc. ... 32,155 444,141
--------------
4,999,241
--------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
20
<PAGE> 23
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------------
<S> <C> <C>
RETAIL STORES--DRUGS (0.2%)
Longs Drug Stores Corp. ... 4,796 $ 111,507
Rite Aid Corp. ............ 31,505 157,525
Walgreen Co. .............. 121,445 3,415,641
--------------
3,684,673
--------------
RETAIL STORES--FOOD (0.4%)
Albertson's, Inc. ......... 51,033 1,661,762
Great Atlantic & Pacific
Tea Co., Inc. (The)....... 4,635 84,878
Kroger Co. (The) (a)....... 100,601 1,867,406
Safeway Inc. (a)........... 61,742 2,724,366
Winn-Dixie Stores, Inc. ... 18,113 299,997
--------------
6,638,409
--------------
RETAIL STORES--GENERAL MERCHANDISE (2.3%)
Kmart Corp. (a)............ 60,049 487,898
Sears, Roebuck & Co. ...... 46,485 1,702,513
Target Corp. .............. 53,984 3,593,310
Wal-Mart Stores, Inc. ..... 540,044 29,904,937
--------------
35,688,658
--------------
RETAIL STORES--SPECIALTY (2.0%)
AutoZone, Inc. (a)......... 18,331 420,467
Bed Bath & Beyond Inc.
(a)....................... 16,014 587,514
Best Buy Co. Inc. (a)...... 24,795 2,002,196
Circuit City Stores-Circuit
City Group................ 24,411 1,435,672
Consolidated Stores Corp.
(a)....................... 13,310 165,543
Costco Wholesale Corp.
(a)....................... 53,204 2,876,341
CVS Corp. ................. 47,620 2,071,470
Dollar General Corp. ...... 32,308 739,045
Home Depot, Inc. (The)..... 279,274 15,656,799
Lowe's Cos., Inc. ......... 46,412 2,297,394
Office Depot, Inc. (a)..... 39,962 422,099
Staples Inc. (a)........... 57,266 1,091,633
Tandy Corp. ............... 24,046 1,370,622
Toys "R" Us, Inc. (a)...... 29,847 455,167
--------------
31,591,962
--------------
SHOES (0.1%)
NIKE, Inc. Class B......... 33,994 1,476,614
Reebok International Ltd.
(a)....................... 6,859 116,603
--------------
1,593,217
--------------
SPECIALIZED SERVICES (0.5%)
Block (H&R), Inc. ......... 11,936 499,074
Cendant Corp. (a).......... 89,352 1,379,372
Dun & Bradstreet Corp.
(The)..................... 20,069 604,579
Ecolab Inc. ............... 15,899 621,055
IMS Health Inc. ........... 38,798 661,991
Interpublic Group of Cos.,
Inc. (The)................ 34,294 1,406,054
National Service
Industries, Inc. ......... 5,009 107,693
Omnicom Group Inc. ........ 21,777 1,983,068
Young & Rubicam Inc. ...... 8,140 453,296
--------------
7,716,182
--------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------------
<S> <C> <C>
SPECIALTY PRINTING (0.0%) (b)
Deluxe Corp. .............. 9,560 $ 240,793
Donnelley (R.R.) & Sons
Co. ...................... 15,640 332,350
--------------
573,143
--------------
STEEL (0.1%)
Allegheny Technologies
Inc. ..................... 11,863 286,936
Bethlehem Steel Corp.
(a)....................... 15,919 85,565
Nucor Corp. ............... 10,786 463,798
USX-U.S. Steel Group....... 10,806 270,826
Worthington Industries,
Inc. ..................... 11,334 140,258
--------------
1,247,383
--------------
TELECOMMUNICATIONS--LONG DISTANCE (3.5%)
AT&T Corp. ................ 385,998 18,021,282
Global Crossing Ltd. (a)... 94,588 2,979,522
MCI WorldCom, Inc. (a)..... 344,740 15,664,124
Nextel Communications, Inc.
Class A (a)............... 43,974 4,812,405
Sprint Corp. (FON Group)... 105,360 6,479,640
Sprint Corp. (PCS Group)
(a)....................... 104,553 5,750,415
--------------
53,707,388
--------------
TELEPHONE (3.6%)
ALLTEL Corp. .............. 38,118 2,539,612
Bell Atlantic Corp. ....... 187,113 11,086,445
BellSouth Corp. ........... 228,231 11,111,997
CenturyTel, Inc. .......... 16,947 415,201
GTE Corp. ................. 117,887 7,986,844
SBC Communications Inc. ... 414,287 18,150,949
US West Inc. .............. 61,363 4,368,279
--------------
55,659,327
--------------
TEXTILES--APPAREL MANUFACTURERS (0.1%)
Liz Claiborne, Inc. ....... 7,681 355,726
Russell Corp. ............. 4,158 81,601
Springs Industries, Inc.
Class A................... 2,200 90,338
V.F. Corp. ................ 14,693 415,077
--------------
942,742
--------------
TOBACCO (0.4%)
Philip Morris Cos. Inc. ... 286,916 6,276,288
UST Inc. .................. 20,862 312,930
--------------
6,589,218
--------------
TOYS (0.1%)
Hasbro, Inc. .............. 24,077 383,727
Mattel, Inc. .............. 50,664 620,634
--------------
1,004,361
--------------
TRANSPORTATION--MISCELLANEOUS (0.1%)
FedEx Corp. (a)............ 34,697 1,307,643
Ryder System, Inc. ........ 7,813 173,351
--------------
1,480,994
--------------
Total Common Stocks
(Cost $910,623,534)....... 1,499,029,585(e)
--------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
21
<PAGE> 24
INDEXED EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (3.1%)
PRINCIPAL
AMOUNT VALUE
-----------------------------
<S> <C> <C>
COMMERCIAL PAPER (2.5%)
Banque Et Caisse Epargne
6.02%, due 5/5/00 (c)..... $ 5,949,000 $ 5,943,008
Consolidated Natural Gas
Co.
6.10%, due 5/11/00 (c).... 9,791,000 9,771,014
6.12%, due 5/3/00 (c)..... 3,136,000 3,133,859
Hasbro Inc.
6.08%, due 5/5/00 (c)..... 13,500,000 13,486,267
National Fuel Gas Co.
6.08%, due 5/3/00 (c)..... 1,600,000 1,598,915
6.10%, due 6/6/00 (c)..... 3,300,000 3,278,683
6.15%, due 6/5/00 (c)..... 300,000 298,100
6.20%, due 6/8/00 (c)..... 800,000 794,487
--------------
Total Commercial Paper
(Cost $38,304,333)........ 38,304,333
--------------
U.S. GOVERNMENT (0.6%)
United States Treasury
Bills
5.675%, due 7/13/00 (c)... 8,100,000 8,004,915
5.72%, due 7/20/00 (c).... 2,000,000 1,974,034
--------------
Total U.S. Government
(Cost $9,978,949)......... 9,978,949
--------------
Total Short-Term
Investments
(Cost $48,283,282)........ 48,283,282
--------------
Total Investments
(Cost $958,906,816) (f)... 99.9% 1,547,312,867(g)
Cash and Other Assets,
Less Liabilities.......... 0.1 680,370
----------- --------------
Net Assets................. 100.0% $1,547,993,237
=========== ==============
</TABLE>
<TABLE>
<CAPTION>
FUTURES CONTRACTS (-0.1%)
CONTRACTS UNREALIZED
LONG (DEPRECIATION)(h)
------------------------------
<S> <C> <C>
Standard & Poor's 500
Index
June 2000................ 131 $ (1,649,761)
June 2000 (Mini)......... 4 (1,656)
--------------
Total Futures Contracts
(Settlement Value
$48,107,000) (e)......... $ (1,651,417)
==============
</TABLE>
------------
(a) Non-income producing security.
(b) Less than one tenth of a percent.
(c) Segregated as collateral for futures contracts.
(d) ADR--American Depository Receipt.
(e) The combined market value of common stocks and settlement value of Standard
& Poor's 500 Index futures contracts represents 99.9% of net assets.
(f) The cost for Federal income tax purposes is $959,875,193.
(g) At April 30, 2000, net unrealized appreciation was $587,437,674, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $655,199,686, and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $67,762,012.
(h) Represents the difference between the value of the contracts at the time
they were opened and the value at April 30, 2000.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
22
<PAGE> 25
MAINSTAY
INSTITUTIONAL FUNDS INC.
INDEXED EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $958,906,816)........................... $1,547,312,867
Cash........................................... 36,182
Receivables:
Dividends and interest....................... 1,251,415
Fund shares sold............................. 415,998
Investment securities sold................... 197,623
--------------
Total assets............................. 1,549,214,085
--------------
LIABILITIES:
Payables:
Variation margin on futures contracts........ 505,935
MainStay Management.......................... 300,717
Fund shares redeemed......................... 181,781
Custodian.................................... 18,328
Transfer agent............................... 7,960
Accrued expenses............................... 206,127
--------------
Total liabilities........................ 1,220,848
--------------
Net assets..................................... $1,547,993,237
==============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class.......................... $ 39,249
Institutional Service Class.................. 1,764
Additional paid-in capital..................... 717,492,636
Accumulated undistributed net investment
income....................................... 4,583,593
Accumulated undistributed net realized gain on
investments and futures contracts............ 239,121,361
Net unrealized appreciation on investments and
futures contracts............................ 586,754,634
--------------
Net assets..................................... $1,547,993,237
==============
Institutional Class
Net assets applicable to outstanding shares.... $1,481,714,762
==============
Shares of capital stock outstanding............ 39,249,071
==============
Net asset value per share outstanding.......... $ 37.75
==============
Institutional Service Class
Net assets applicable to outstanding shares.... $ 66,278,475
==============
Shares of capital stock outstanding............ 1,763,900
==============
Net asset value per share outstanding.......... $ 37.57
==============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................ $ 9,689,544
Interest..................................... 413,262
--------------
Total income............................. 10,102,806
--------------
Expenses:
Management................................... 4,091,143
Custodian.................................... 83,314
Service...................................... 80,215
Professional................................. 75,711
Shareholder communication.................... 44,135
Transfer agent............................... 29,955
Directors.................................... 17,222
Registration................................. 2,933
Miscellaneous................................ 70,009
--------------
Total expenses before reimbursement...... 4,494,637
Expense reimbursement from Manager........... (1,959,736)
--------------
Net expenses............................. 2,534,901
--------------
Net investment income.......................... 7,567,905
--------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain from:
Security transactions........................ 238,753,570
Futures transactions......................... 1,650,679
--------------
Net realized gain on
investments.................................. 240,404,249
--------------
Net change in unrealized
appreciation on investments:
Security transactions........................ (136,820,861)
Futures transactions......................... (1,954,325)
--------------
Net unrealized loss on
investments.................................. (138,775,186)
--------------
Net realized and unrealized gain on
investments.................................. 101,629,063
--------------
Net increase in net assets
resulting from operations.................... $ 109,196,968
==============
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $12,932.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
23
<PAGE> 26
INDEXED EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................... $ 7,567,905 $ 14,052,668 $ 16,035,836
Net realized gain on investments and futures
contracts............................................. 240,404,249 66,096,265 54,018,731
Net change in unrealized appreciation on investments and
futures contracts..................................... (138,775,186) 94,857,335 244,317,325
-------------- -------------- --------------
Net increase in net assets resulting from operations.... 109,196,968 175,006,268 314,371,892
-------------- -------------- --------------
Dividends and distributions to shareholders:
From net investment income:
Institutional Class................................... (16,527,242) -- (15,890,238)
Institutional Service Class........................... (509,738) -- (314,560)
From net realized gain on investments:
Institutional Class................................... (63,793,701) (13,798,796) (43,243,748)
Institutional Service Class........................... (2,462,123) (520,131) (1,050,731)
-------------- -------------- --------------
Total dividends and distributions to shareholders... (83,292,804) (14,318,927) (60,499,277)
-------------- -------------- --------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 120,483,787 239,078,730 355,359,146
Institutional Service Class........................... 16,931,521 32,503,215 23,308,027
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 80,320,943 13,796,673 59,128,205
Institutional Service Class........................... 2,971,861 520,113 1,359,018
-------------- -------------- --------------
220,708,112 285,898,731 439,154,396
Cost of shares redeemed:
Institutional Class................................... (385,514,419) (240,105,604) (156,430,972)
Institutional Service Class........................... (16,342,357) (11,948,104) (7,935,488)
-------------- -------------- --------------
Increase (decrease) in net assets derived from capital
share transactions.................................. (181,148,664) 33,845,023 274,787,936
-------------- -------------- --------------
Net increase (decrease) in net assets................. (155,244,500) 194,532,364 528,660,551
NET ASSETS:
Beginning of period....................................... 1,703,237,737 1,508,705,373 980,044,822
-------------- -------------- --------------
End of period............................................. $1,547,993,237 $1,703,237,737 $1,508,705,373
============== ============== ==============
Accumulated undistributed net investment income at end of
period.................................................. $ 4,583,593 $ 14,052,668 $ --
============== ============== ==============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
24
<PAGE> 27
(THIS PAGE INTENTIONALLY LEFT BLANK)
25
<PAGE> 28
INDEXED EQUITY FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 36.99 $ 36.80 $ 33.39 $ 33.28 $ 27.05 $ 26.99
---------- ---------- ---------- ---------- ---------- ----------
Net investment income....... 0.17(a) 0.13(a) 0.31 0.21 0.38 0.31
Net realized and unrealized
gain (loss) on
investments................ 2.43 2.40 3.60 3.62 7.36 7.31
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations................. 2.60 2.53 3.91 3.83 7.74 7.62
---------- ---------- ---------- ---------- ---------- ----------
Less dividends and
distributions:
From net investment income.. (0.38) (0.30) -- -- (0.38) (0.31)
From net realized gain on
investments................ (1.46) (1.46) (0.31) (0.31) (1.02) (1.02)
In excess of net realized
gain on investments........ -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total dividends and
distributions.............. (1.84) (1.76) (0.31) (0.31) (1.40) (1.33)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of
period..................... $ 37.75 $ 37.57 $ 36.99 $ 36.80 $ 33.39 $ 33.28
========== ========== ========== ========== ========== ==========
Total investment return..... 7.03%(c) 6.88%(c) 11.80%(c) 11.60%(c) 28.62% 28.24%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 0.93%+ 0.68%+ 1.06%+ 0.81%+ 1.29% 1.04%
Net expenses............... 0.30%+ 0.55%+ 0.30%+ 0.55%+ 0.30% 0.55%
Expenses (before
reimbursement)........... 0.54%+ 0.79%+ 0.55%+ 0.80%+ 0.56% 0.81%
Portfolio turnover rate..... 4% 4% 7% 7% 8% 8%
Net assets at end of period
(in 000's)................. $1,481,715 $ 66,278 $1,641,591 $ 61,647 $1,472,263 $ 36,442
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Per share data based on average shares outstanding during the period.
(b) Less than one cent per share.
(c) Total return is not annualized.
(d) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
26
<PAGE> 29
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(d) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 21.05 $ 21.01 $ 17.82 $ 17.81 $ 13.53 $ 13.53 $ 13.86
---------- ---------- ---------- ---------- ---------- ---------- ----------
0.37 0.32 0.34 0.31 0.35 0.33 0.33
6.54 6.52 3.69 3.66 4.64 4.64 (0.20)
---------- ---------- ---------- ---------- ---------- ---------- ----------
6.91 6.84 4.03 3.97 4.99 4.97 0.13
---------- ---------- ---------- ---------- ---------- ---------- ----------
(0.37) (0.32) (0.34) (0.31) (0.34) (0.33) (0.33)
(0.54) (0.54) (0.46) (0.46) (0.36) (0.36) (0.13)
-- -- -- -- -- -- 0.00(b)
---------- ---------- ---------- ---------- ---------- ---------- ----------
(0.91) (0.86) (0.80) (0.77) (0.70) (0.69) (0.46)
---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 27.05 $ 26.99 $ 21.05 $ 21.01 $ 17.82 $ 17.81 $ 13.53
========== ========== ========== ========== ========== ========== ==========
32.88% 32.60% 22.57% 22.21% 36.88% 36.70% 0.90%
1.56% 1.31% 1.96% 1.71% 2.21% 1.96% 2.43%
0.30% 0.55% 0.44% 0.69% 0.50% 0.75% 0.50%
0.56% 0.81% 0.59% 0.84% 0.59% 0.84% 0.58%
3% 3% 8% 8% 4% 4% 5%
$ 966,217 $ 13,828 $ 617,716 $ 5,865 $ 354,420 $ 969 $ 244,685
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
27
<PAGE> 30
VALUE EQUITY FUND
--------------------------------------------------------------------------------
Throughout most of the six months ended April 30, 2000, the stock market was
exceedingly turbulent, with growth stocks generally outpacing value equities by
a substantial margin. In March and April, however, value stocks generally
outperformed growth issues at all capitalization levels(1) in response to
widespread inflation jitters and concerns over lofty valuations among growth
stocks.
During the reporting period, technology stocks dominated the market's attention,
while traditional value sectors were generally sluggish in comparison. Energy
stocks were a notable exception, showing strong performance throughout the
semiannual period.
In an effort to slow economic growth and curb inflation, the Federal Reserve
raised the targeted Federal Funds rate in November, February, and March. This
had a generally negative impact on traditional value sectors such as basic
materials companies, retailers, and firms in financial services.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Value Equity
Fund returned -0.78% for Institutional Class shares and -0.92% for Service Class
shares. Both share classes underperformed the 3.88% return of the average
Lipper(2) multi-cap value fund and the 7.19% return of the S&P 500 Index.(3) The
Fund's strict adherence to its value disciplines limited its ability to
participate in the technology rally and may help to explain why the Fund
underper-formed its Lipper peers. Although the Fund underperformed the S&P 500,
it outperformed the -0.99% return of the Russell 1000 Value Index. The
subadvisor believes this Index more closely reflects the Fund's holdings.
Throughout the reporting period, the Fund held about one-eighth of the S&P 500's
weight in the technology sector. Seagate Technology, Inc. was one such issue
that met the Fund's value criteria and had a positive impact on the Fund's
performance over the six-month period ended April 30, 2000.
While the Fund was underweighted in technology, it held nearly three times the
benchmark's weighting in energy, which had a positive effect on the Fund's
performance. Among the Fund's strongest performing energy stocks were Dynegy,
Coastal Corp., El Paso Energy, Noble Affiliates, and Valero Energy. The Fund
also had success with Sunoco, which gained strength in response to improving
margins and earnings visibility.
INTEREST-RATE SENSITIVE ISSUES
Although several of the Fund's financial and insurance holdings suffered as
interest rates rose, Citigroup proved relatively resilient during the reporting
period, with strong advances in March that helped it contribute positively to
Fund performance. Despite wide price swings, AXA Financial closed the reporting
period near where it began, while American General was a lagging financial
holding. To manage financial exposure in a rising interest-rate environment, we
sold the Fund's positions in Conseco and SLM Holding in the first two months of
2000.
Although retail stocks were generally challenged by rising interest rates,
discount retailer Payless ShoeSource gained substantial ground in March and
April, with a positive impact on Fund performance.
Certain of the Fund's basic materials stocks, such as Georgia-Pacific and
USX-U.S. Steel, struggled as Federal Reserve tightening
--------------------------------------------------------------------------------
(1) As measured by the Russell 1000(R), Russell 2000(R), and Russell Midcap(R)
Growth and Value Indexes. The Russell 1000 Index is an unmanaged index that
measures the performance of the 1,000 largest companies in the Russell 3000
Index, which, in turn, is an unmanaged index that includes the 3,000 largest
U.S. companies based on total market capitalization. The Russell 2000 Index
is an unmanaged index that measures the performance of the 2,000 smallest
companies in the Russell 3000 Index. The Russell Midcap(TM) Index measures
the performance of the 800 smallest companies in the Russell 1000 Index. All
Russell Growth Indices measure the performance of stocks within the
respective universe with higher price-to book ratios and higher forecasted
growth values. All Russell Value Indices measure the performance of stocks
within the respective universe with lower price-to-book ratios and lower
forecasted growth values. Total returns reflect reinvestment of all
dividends and capital gains. An investment cannot be made directly into an
index.
(2) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(3) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P 500
is an unmanaged index and is widely regarded as the standard for measuring
large-cap U.S. stock market performance. Returns assume the reinvestment of
all income and capital gain distributions. An investment cannot be made
directly into an index.
28
<PAGE> 31
fueled concerns about slowing economic growth. Reynolds Metals, on the other
hand, showed strong performance throughout the semiannual period, benefiting
from its impending merger with ALCOA. Container companies such as
Owens-Illinois, Smurfit-Stone Container, and Temple-Inland were also hurt by
rising interest rates, and these holdings had a negative impact on Fund
performance.
OTHER SECTORS
While health care results were mixed, drug manufacturer Mylan Laboratories
showed strength throughout the reporting period, with a positive impact on Fund
performance. After rallying as the year 2000 approached, Health Management
Associates stock retreated in January and February, but then climbed steadily in
March and April to have a positive overall impact on the Fund's results. Becton,
Dickinson, a medical products company, rose sharply in the latter half of
January but ended the six-month reporting period just slightly higher than where
it began.
The Fund's chemical holdings were quite volatile, but IMC Global and Air
Products and Chemicals both contributed positively to the Fund's overall
performance.
Harrah's Entertainment, which had previously been a strong performer for the
Fund, trended steadily downward throughout the reporting period. And despite a
positive showing in October, Hasbro declined for the next five months. Both
stocks had a negative impact on Fund performance.
LOOKING AHEAD
The outperformance of value stocks in March and April suggests that investors
may be increasingly interested in investing in companies with both attractive
valuation and strong earnings growth potential. It is these types of stocks that
have appreciated as the high-flying technology sector has come down to earth. We
believe the Federal Reserve will continue its tightening moves to keep inflation
and economic growth in check, so we plan to add to the Fund's positions in less
economically sensitive sectors, such as consumer staples and health care. We
have also reduced the Fund's exposure to consumer cyclicals, as we anticipate
slowing earnings growth in this sector in the coming years, in response to
weakening consumer spending and overall economic trends.
Whatever the markets or the economy may bring, the Fund will continue to follow
its rigorous value process as it seeks to realize maximum long-term total return
from a combination of capital growth and income.
RICHARD A. ROSEN
Portfolio Manager
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. Value stocks may never reach what the subadvisor believes is their
full value and may go down in value. Different types of stocks tend to shift in
and out of favor, and so the Fund's performance may be lower or higher than that
of funds that invest in other types of equity securities.
29
<PAGE> 32
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
VALUE EQUITY FUND VS
S&P 500 INDEX AND
RUSSELL 1000 VALUE INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX VALUE EQUITY FUND RUSSELL 1000 VALUE INDEX
------------- ----------------- ------------------------
<S> <C> <C> <C>
1/2/91 $ 250000.00000 $ 250000.00000 $ 250000.00000
91 326169.00000 341500.00000 311505.00000
92 351004.00000 412219.00000 354515.00000
93 386397.00000 473637.00000 418783.00000
94 391491.00000 479424.00000 410454.00000
95 538653.00000 626473.00000 567879.00000
96 662317.00000 759502.00000 690786.00000
97 883274.00000 931372.00000 933820.00000
98 1135680.00000 855946.00000 1079840.00000
99 1374820.00000 934826.00000 1159080.00000
00 as of 4/30/00 1364100.00000 916468.00000 1151140.00000
</TABLE>
Source: Lipper Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
VALUE EQUITY FUND VS
S&P 500 INDEX AND
RUSSELL 1000 VALUE INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
S&P 500 INDEX VALUE EQUITY FUND RUSSELL 1000 VALUE INDEX
------------- ----------------- ------------------------
<S> <C> <C> <C>
1/2/91 $ 250000.00000 $ 250000.00000 $ 250000.00000
91 326169.00000 341500.00000 311505.00000
92 351004.00000 412219.00000 354515.00000
93 386397.00000 473637.00000 418783.00000
94 391491.00000 479424.00000 410454.00000
95 538653.00000 619976.00000 567879.00000
96 662317.00000 756979.00000 690786.00000
97 883274.00000 925611.00000 933820.00000
98 1135680.00000 848787.00000 1079840.00000
99 1374820.00000 924978.00000 1159080.00000
00 as of 4/30/00 1364100.00000 905375.00000 1151140.00000
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period One year Five years Since inception
--------------------------------------------------------------------------------------------------------
Value Equity Fund Institutional
Class -0.78% -4.83% 11.56% 14.93%
Value Equity Fund Service Class(+) -0.92 -5.11 11.27 14.78
Average Lipper multi-cap value
fund(++) 3.88 -0.32 15.65 15.09
S&P 500 Index(sec.) 7.19 10.13 25.26 20.28
Russell 1000(R) Value Index(I) -0.99 -3.88 19.94 17.77
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31
1991 1992 1993 1994 1995 1996 1997 1998
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN * 36.6% 20.71% 14.90% 1.22% 29.42% 22.41% 22.63% -8.10%
<CAPTION>
TEN SIX
MONTHS MONTHS
ENDED ENDED
OCTOBER 31 APRIL 30
1999 2000
---- ----
<S> <C> <C>
TOTAL RETURN * 7.916% -0.78%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized
basis of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public
on 1/1/95, include the historical performance of the Institutional Class
from the Fund's inception (1/2/91) up to 12/31/94. Performance figures
for these two classes will vary after this date based on differences in
their expense structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P
500 is an unmanaged index and is widely regarded as the standard for
measuring large-cap U.S. stock market performance. Returns assume the
reinvestment of all income and capital gain distributions. An investment
cannot be made directly into an index.
(I) The MainStay Institutional Value Equity Fund, going forward, will measure
its performance against the Russell 1000(R) Value Index. This index reflects
the holdings of the Fund better than the S&P 500, against which the Fund is
currently measured, and the subadvisor believes that the Russell 1000 Value
Index is, therefore, a better performance benchmark. The Russell 1000 Value
Index is an unmanaged index that measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted growth
values. The Russell 1000 is an unmanaged index that measures the performance
of the 1,000 largest companies in the Russell 3000(R) Index, which, in
return, is an unmanaged index that includes the 3,000 largest U.S. companies
based on total market capitalization. Returns reflect reinvestment of all
dividends and capital gains. An investment cannot be made directly into an
index.
30
<PAGE> 33
MAINSTAY
INSTITUTIONAL FUNDS INC.
VALUE EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (93.4%)+
SHARES VALUE
-------------------------
<S> <C> <C>
AEROSPACE/DEFENCE (1.7%)
General Dynamics Corp. ........ 125,700 $ 7,353,450
Raytheon Co. Class A........... 67,800 1,555,163
Raytheon Co. Class B........... 140,700 3,121,781
------------
12,030,394
------------
ALUMINUM (1.3%)
Reynolds Metals Co. ........... 133,100 8,851,150
------------
BANKS (6.9%)
Bank One Corp. ................ 85,200 2,598,600
Chase Manhattan Corp. (The).... 185,500 13,367,594
FleetBoston Financial Corp. ... 475,216 16,840,467
Washington Mutual, Inc. ....... 611,300 15,626,356
------------
48,433,017
------------
CHEMICALS (2.1%)
Air Products and Chemicals,
Inc. ......................... 298,400 9,269,050
IMC Global Inc. ............... 374,860 5,786,901
------------
15,055,951
------------
COMPUTER SOFTWARE & SERVICES (0.2%)
Ceridian Corp. (a)............. 54,900 1,190,644
------------
COMPUTER SYSTEMS (3.8%)
Seagate Technology, Inc. (a)... 211,800 10,762,088
Unisys Corp. (a)............... 692,700 16,061,981
------------
26,824,069
------------
CONSUMER PRODUCTS (0.9%)
Energizer Holdings, Inc. (a)... 375,633 6,409,238
------------
CONTAINERS (2.8%)
Owens-Illinois, Inc. (a)....... 141,800 1,914,300
Smurfit-Stone Container Corp.
(a)........................... 714,900 10,902,225
Temple-Inland Inc. ............ 134,600 6,746,825
------------
19,563,350
------------
ELECTRIC POWER COMPANIES (3.7%)
DTE Energy Co. ................ 245,500 8,009,438
Energy East Corp. ............. 364,000 7,598,500
Niagara Mohawk Holdings Inc.
(a)........................... 749,500 10,399,312
------------
26,007,250
------------
ENGINEERING & CONSTRUCTION (1.6%)
Fluor Corp. ................... 325,100 10,911,169
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
FINANCE (7.1%)
American General Corp. ........ 386,600 $ 21,649,600
AXA Financial, Inc. ........... 493,000 16,084,125
Citigroup Inc. ................ 202,500 12,036,094
------------
49,769,819
------------
FOOD (3.9%)
ConAgra, Inc. ................. 459,500 8,673,062
Heinz (H.J.) Co. .............. 310,900 10,570,600
Ralston-Ralston Purina Group... 447,700 7,918,694
------------
27,162,356
------------
HEALTH CARE--DRUGS (1.1%)
Mylan Laboratories Inc. ....... 266,700 7,567,613
------------
HEALTH CARE--MEDICAL PRODUCTS (1.0%)
Becton, Dickinson & Co. ....... 270,300 6,926,438
------------
HEALTH CARE--MISCELLANEOUS (4.7%)
Abbott Laboratories............ 313,400 12,046,312
Health Management Associates,
Inc. Class A (a).............. 440,000 7,012,500
Manor Care, Inc. (a)........... 246,200 2,939,013
Tenet Healthcare Corp. (a)..... 431,800 11,010,900
------------
33,008,725
------------
HEAVY DUTY TRUCKS & PARTS (1.5%)
Dana Corp. .................... 348,300 10,579,613
------------
HOTEL/MOTEL (1.2%)
Harrah's Entertainment, Inc.
(a)........................... 412,800 8,488,200
------------
HOUSEHOLD PRODUCTS (1.0%)
Clorox Co. (The)............... 184,200 6,769,350
------------
INSURANCE (3.3%)
Allstate Corp. (The)........... 331,800 7,838,775
MGIC Investment Corp. ......... 319,800 15,290,437
------------
23,129,212
------------
LEISURE TIME (0.5%)
Callaway Golf Co. ............. 200,900 3,339,962
------------
MACHINERY (1.6%)
Ingersoll-Rand Co. ............ 233,900 10,978,681
------------
MANUFACTURING (4.8%)
American Standard Cos. Inc.
(a)........................... 472,500 19,372,500
Honeywell International
Inc. ......................... 262,525 14,701,400
------------
34,073,900
------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
31
<PAGE> 34
VALUE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
NATURAL GAS DISTRIBUTORS & PIPELINES (6.9%)
Coastal Corp. (The)............ 453,900 $ 22,780,106
Dynegy Inc. Class A............ 281,100 18,394,481
El Paso Energy Corp. .......... 166,300 7,067,750
------------
48,242,337
------------
OIL & GAS SERVICES (9.9%)
Burlington Resources Inc. ..... 285,900 11,239,444
Noble Affiliates, Inc. ........ 447,100 16,123,544
Union Pacific Resources Group
Inc. ......................... 848,400 16,278,675
Unocal Corp. .................. 411,900 13,309,518
Valero Energy Corp. ........... 443,200 12,852,800
------------
69,803,981
------------
OIL--INTEGRATED DOMESTIC (4.2%)
Sunoco, Inc. .................. 338,100 10,248,656
Tosco Corp. ................... 590,600 18,936,113
------------
29,184,769
------------
OIL--INTEGRATED INTERNATIONAL (1.8%)
Texaco Inc. ................... 260,300 12,884,850
------------
PAPER & FOREST PRODUCTS (1.5%)
Georgia-Pacific Group.......... 229,100 8,419,425
International Paper Co. ....... 63,200 2,322,600
------------
10,742,025
------------
RETAIL (2.7%)
Federated Department Stores,
Inc. (a)...................... 181,600 6,174,400
Office Depot, Inc. (a)......... 1,238,400 13,080,600
------------
19,255,000
------------
STEEL (1.2%)
USX-U.S. Steel Group........... 330,000 8,270,625
------------
TELECOMMUNICATIONS--LONG DISTANCE (2.8%)
AT&T Corp. .................... 425,500 19,865,531
------------
TELEPHONE (3.6%)
Bell Atlantic Corp. ........... 308,200 18,260,850
CenturyTel, Inc. .............. 302,100 7,401,450
------------
25,662,300
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
TEXTILE--SPECIALTY (0.6%)
Shaw Industries, Inc. ......... 260,650 $ 4,121,528
------------
TOYS (1.5%)
Hasbro, Inc. .................. 666,100 10,615,969
------------
Total Common Stocks
(Cost $634,773,799)........... 655,719,016
------------
<CAPTION>
SHORT-TERM INVESTMENTS (4.8%)
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
COMMERCIAL PAPER (4.8%)
Ford Motor Credit Co.
6.00%, due 5/5/00 ............ $ 4,540,000 4,535,453
General Electric Co.
6.04%, due 5/18/00 ........... 13,050,000 13,008,393
Wells Fargo Co.
6.01%, due 5/1/00 ............ 6,790,000 6,769,484
6.04%, due 5/17/00 ........... 9,855,000 9,851,703
------------
Total Short-Term Investments
(Cost $34,165,033)............ 34,165,033
------------
Total Investments
(Cost $668,938,832) (b)....... 98.2% 689,884,049(c)
Cash and Other Assets,
Less Liabilities.............. 1.8 12,369,960
----------- ------------
Net Assets..................... 100.0% $702,254,009
=========== ============
</TABLE>
------------
(a) Non-income producing security.
(b) The cost for Federal income tax purposes is $670,904,108.
(c) At April 30, 1999, net unrealized appreciation was $18,979,941, based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $80,455,708 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $61,475,767.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
32
<PAGE> 35
MAINSTAY
INSTITUTIONAL FUNDS INC.
VALUE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $668,938,832)........................... $ 689,884,049
Cash......................................... 4,041,939
Receivables:
Investment securities sold................... 29,551,848
Dividends.................................... 1,090,152
Fund shares sold............................. 131,042
Other assets................................... 178,590
--------------
Total assets............................. 724,877,620
--------------
LIABILITIES:
Payables:
Investment securities purchased.............. 21,659,834
MainStay Management.......................... 458,762
Fund shares redeemed......................... 331,193
Transfer agent............................... 68,510
Custodian.................................... 18,111
Accrued expenses............................... 87,201
--------------
Total liabilities........................ 22,623,611
--------------
Net assets..................................... $ 702,254,009
==============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share) 1
billion shares authorized
Institutional Class.......................... $ 55,857
Institutional Service Class.................. 420
Additional paid-in capital..................... 700,747,015
Accumulated undistributed net investment
income....................................... 2,196,387
Accumulated net realized loss on investments... (22,069,485)
Accumulated net realized gain on foreign
currency transactions........................ 378,598
Net unrealized appreciation on investments..... 20,945,217
--------------
Net assets..................................... $ 702,254,009
==============
Institutional Class
Net assets applicable to outstanding shares.... $ 697,021,181
==============
Shares of capital stock outstanding............ 55,857,285
==============
Net asset value per share outstanding.......... $ 12.48
==============
Institutional Service Class
Net assets applicable to outstanding shares.... $ 5,232,828
==============
Shares of capital stock outstanding............ 419,560
==============
Net asset value per share outstanding.......... $ 12.47
==============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................ $ 6,385,599
Interest..................................... 507,680
--------------
Total income............................. 6,893,279
--------------
Expenses:
Management................................... 2,942,931
Transfer agent............................... 219,783
Professional................................. 39,069
Custodian.................................... 30,757
Shareholder communication.................... 24,382
Registration................................. 9,845
Service...................................... 7,756
Directors.................................... 7,281
Miscellaneous................................ 8,015
--------------
Total expenses........................... 3,289,819
--------------
Net investment income.......................... 3,603,460
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY FORWARD
CONTRACT TRANSACTIONS:
Net realized gain from:
Security transactions........................ 5,534,063
Foreign currency forward contract
transactions............................... 378,598
--------------
Net realized gain on investments and foreign
currency forward contract transactions....... 5,912,661
--------------
Net change in unrealized appreciation
(depreciation) on investments:
Security transactions........................ (16,554,055)
Foreign currency forward contract............ 137,346
--------------
Net unrealized loss on investments and foreign
currency forward contract.................... (16,416,709)
--------------
Net realized and unrealized loss on
investments.................................. (10,504,048)
--------------
Net decrease in net assets resulting from
operations................................... $ (6,900,588)
==============
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $685.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
33
<PAGE> 36
VALUE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------- ------------- -------------
<S> <C> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income................................... $ 3,603,460 $ 5,516,523 $ 9,720,362
Net realized gain (loss) on investments and foreign
currency forward contract............................. 5,912,661 (19,476,120) 129,651,994
Net change in unrealized appreciation (depreciation) on
investments and foreign currency forward contract..... (16,416,709) 72,567,551 (210,901,900)
------------- ------------- -------------
Net increase (decrease) in net assets resulting from
operations............................................ (6,900,588) 58,607,954 (71,529,544)
------------- ------------- -------------
Dividends and distributions to shareholders:
From net investment income:
Institutional Class................................... (6,415,838) (11,708) (9,628,522)
Institutional Service Class........................... (42,011) (59) (90,474)
From net realized gain on investments:
Institutional Class................................... -- -- (153,210,452)
Institutional Service Class........................... -- -- (1,867,811)
Distribution in excess of net realized gain on
investments:
Institutional Class................................... -- -- (8,485,501)
Institutional Service Class........................... -- -- (103,063)
------------- ------------- -------------
Total dividends and distributions to shareholders... (6,457,849) (11,767) (173,385,823)
------------- ------------- -------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 15,541,578 42,954,878 85,177,154
Institutional Service Class........................... 403,066 934,186 1,986,558
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 6,412,685 11,706 171,050,165
Institutional Service Class........................... 41,327 59 2,062,197
------------- ------------- -------------
22,398,656 43,900,829 260,276,074
Cost of shares redeemed:
Institutional Class................................... (53,006,732) (160,535,158) (197,456,599)
Institutional Service Class........................... (2,496,881) (3,977,132) (2,401,236)
------------- ------------- -------------
Increase (decrease) in net assets derived from capital
share transactions.................................. (33,104,957) (120,611,461) 60,418,239
------------- ------------- -------------
Net decrease in net assets............................ (46,463,394) (62,015,274) (184,497,128)
NET ASSETS:
Beginning of period....................................... 748,717,403 810,732,677 995,229,805
------------- ------------- -------------
End of period............................................. $ 702,254,009 $ 748,717,403 $ 810,732,677
============= ============= =============
Accumulated undistributed net investment income at end of
period.................................................. $ 2,196,387 $ 5,050,776 $ 7,156
============= ============= =============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
34
<PAGE> 37
(THIS PAGE INTENTIONALLY LEFT BLANK)
35
<PAGE> 38
VALUE EQUITY FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 12.69 $ 12.66 $ 11.76 $ 11.76 $ 16.36 $ 16.35
-------- -------- -------- -------- -------- --------
Net investment income....... 0.06(a) 0.05(a) 0.09 0.06 0.18 0.14
Net realized and unrealized
gain (loss) on
investments................ (0.16) (0.17) 0.84 0.84 (1.58) (1.57)
-------- -------- -------- -------- -------- --------
Total from investment
operations................. (0.10) (0.12) 0.93 0.90 (1.40) (1.43)
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
From net investment income.. (0.11) (0.07) (0.00)(b) (0.00)(b) (0.18) (0.14)
From net realized gain on
investments................ -- -- -- -- (2.90) (2.90)
In excess of net realized
gain on investments........ -- -- -- -- (0.12) (0.12)
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.............. (0.11) (0.07) (0.00)(b) (0.00)(b) (3.20) (3.16)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period..................... $ 12.48 $ 12.47 $ 12.69 $ 12.66 $ 11.76 $ 11.76
======== ======== ======== ======== ======== ========
Total investment return..... (0.78%)(c) (0.92%)(c) 7.91%(c) 7.65%(c) (8.10%) (8.30%)
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 1.03%+ 0.78%+ 0.84%+ 0.59%+ 1.04% 0.79%
Net expenses............... 0.94%+ 1.19%+ 0.96%+ 1.21%+ 0.98% 1.23%
Portfolio turnover rate..... 45% 45% 49% 49% 76% 76%
Net assets at end of period
(in 000's)................. $697,021 $ 5,233 $741,300 $ 7,418 $800,993 $ 9,740
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Per share data based on average shares outstanding during the period.
(b) Less than one cent per share.
(c) Total return is not annualized.
(d) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
36
<PAGE> 39
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(d) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 15.87 $ 15.85 $ 14.43 $ 14.43 $ 11.58 $ 11.58 $ 12.40
-------- -------- -------- -------- -------- -------- --------
0.23 0.16 0.25 0.23 0.21 0.20 0.17
3.31 3.32 2.98 2.96 3.20 3.20 (0.02)
-------- -------- -------- -------- -------- -------- --------
3.54 3.48 3.23 3.19 3.41 3.40 0.15
-------- -------- -------- -------- -------- -------- --------
(0.23) (0.16) (0.25) (0.23) (0.21) (0.20) (0.17)
(2.82) (2.82) (1.54) (1.54) (0.35) (0.35) (0.80)
-- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
(3.05) (2.98) (1.79) (1.77) (0.56) (0.55) (0.97)
-------- -------- -------- -------- -------- -------- --------
$ 16.36 $ 16.35 $ 15.87 $ 15.85 $ 14.43 $ 14.43 $ 11.58
======== ======== ======== ======== ======== ======== ========
22.63% 22.28% 22.41% 22.10% 29.42% 29.32% 1.22%
1.30% 1.05% 1.70% 1.45% 1.64% 1.39% 1.50%
0.93% 1.18% 0.92% 1.17% 0.93% 1.18% 0.92%
66% 66% 50% 50% 51% 51% 43%
$984,220 $ 11,010 $821,725 $ 14,752 $603,749 $ 3,213 $396,537
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
37
<PAGE> 40
ASSET MANAGER FUND
--------------------------------------------------------------------------------
With the approach of the new millennium, several forces impacted domestic and
global markets. Inflation concerns, tobacco and Microsoft litigation, Yeltsin's
resignation, and uncertainty over Y2K seemed to dominate the media. Despite the
weaknesses suggested by these factors, the equity market ended 1999 on a very
strong note, with the S&P 500 Index(1) posting its fifth consecutive year of
returns over 20%.
"New economy" stocks drove much of the year-end strength in the equity markets.
But during the first four months of 2000, this trend reversed, with significant
selling in many technology-related issues as more traditional "old economy"
stocks showed improvements. The Federal Reserve raised the targeted federal
funds rate three times during the six months ended April 30, 2000. While each of
the rate hikes was widely anticipated, the market responded differently to each
tightening move.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Asset Manager
Fund returned 8.40% for Institutional Class shares and 8.33% for Service Class
shares. The Fund outperformed the 8.16% return of the average Lipper(2) flexible
portfolio fund. For the same period, the S&P 500 Index returned 7.19%, the
Salomon Smith Barney Broad Investment Grade Index(3) returned 1.42%, and 3-month
Treasury bills returned 2.74%.
Both of the Fund's share classes were rated four stars overall out of 3,606
domestic equity funds by Morningstar(4) as of April 30, 2000. Both share classes
were rated three stars out of 3,606 domestic equity funds for the three year
period then ended and four stars out of 2,294 domestic equity funds for the
five-year period then ended.
ALLOCATION DECISIONS
The Fund uses a tactical asset-allocation model that incorporates several
economic and technical factors to determine the appropriate asset mix within
allocation constraints outlined in the prospectus. Among U.S. stocks, the Fund
may allocate assets across the S&P 500 Index, the S&P Midcap 400 Index, and the
S&P SmallCap 600 Index.(5) The Fund may also allocate assets across REITs (real
estate investment trusts), investment-grade bonds, money-market instruments, and
a variety of foreign indexes.
The best-performing markets and sectors for the six-month reporting period were
Canada (+28.23%), U.S. midcap stocks (+21.14%), and Hong Kong (+17.50%), all in
U.S. dollar terms.(6) Technology, pharmaceuticals, and telecommunication stocks
performed well in these markets. NVIDIA Corporation, Incyte Pharmaceuticals, and
Vishay Intertechnology were among the Fund's strong U.S. midcap holdings.
Investments in Germany (+16.44%) and France (+13.59%) were also among the Fund's
strong performers.
While all of these investments contributed positively to the Fund's performance
during the reporting period, the overall impact on the Fund's total return was
limited by the Fund's allocation constraints.
--------------------------------------------------------------------------------
(1) "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. and has been
licensed for use by Monitor Capital Advisors LLC. S&P does not sponsor,
endorse, sell, or promote the Fund or represent the advisability of
investing in MainStay Institutional Asset Manager Fund. The S&P 500 is an
unmanaged index and is widely regarded as the standard for measuring
large-cap U.S. stock market performance. Returns assume the reinvestment of
all income and capital gain distributions. An investment cannot be made
directly into an index.
(2) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(3) The Salomon Smith Barney Broad Investment Grade (BIG) Bond Index is an
unmanaged index that is considered representative of the U.S. bond market.
Total returns reflect reinvestment of all income and capital gains. An
investment cannot be made directly into an index.
(4) Morningstar, Inc. is an independent fund performance monitor. Its ratings
reflect historic risk-adjusted performance, taking fees and sales charges
into account, and may change monthly. Its ratings of one (low) to five
(high) stars are based on a fund's three-, five-, and 10-year average annual
returns (if applicable) in excess of 90-day Treasury bill returns, and a
risk factor that reflects fund performance below 90-day Treasury bill
returns. The top 10% of funds in a broad asset class receive five stars, the
next 22.5% receive four stars, the middle 35% receive three stars, the next
22.5% receive two stars, and the bottom 10% receive one star. Past
performance is no guarantee of future results.
(5) "S&P MidCap 400" and "S&P SmallCap 600" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by Monitor Capital Advisors
LLC. S&P does not sponsor, endorse, sell, or promote the Fund or represent
the advisability of investing in MainStay Institutional Asset Manager Fund.
The S&P MidCap 400 Index is an unmanaged index measuring the performance of
the midsize company segment of the U.S. market. The S&P SmallCap 600 Index
is an unmanaged index measuring the performance of the small-company segment
of the U.S. market. An investment cannot be made directly into an index.
(6) Foreign market and U.S. stock sector returns reflect major unmanaged indices
considered representative of the specific markets or sectors. Returns assume
the reinvestment of all income and capital gain distributions. An investment
cannot be made directly into an index.
38
<PAGE> 41
While U.S. bonds and money-market instruments provided positive returns during
the reporting period, on a relative basis, the Fund's allocation to U.S. bonds
and its mandated minimum allocation of 10% of net assets to money-market
instruments had a negative impact on the Fund's overall performance for the six
months ended April 30, 2000.
LOOKING AHEAD
We believe that continuing inflation concerns and strong consumer spending could
lead to additional Federal Reserve action in the coming months. MainStay
Institutional Asset Manager Fund will continue to invest as its proprietary
asset-allocation model directs, within the Fund's allocation guidelines.
Whatever happens in the global economy and specific markets, the Fund will
continue to seek to maximize total return, consistent with certain percentage
constraints on amounts allocated to each asset class, from a combination of
common stocks, fixed-income securities, and money-market investments.
JEFFERSON C. BOYCE
JONATHAN B. SWANEY
Portfolio Managers
Monitor Capital Advisors LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in foreign securities may be subject to greater risks than domestic
investments. These risks include currency fluctuations, changes in U.S. or
foreign tax or currency laws, and changes in monetary policies and economic and
political conditions in foreign countries. Historically, mid- and small-cap
stocks, such as those in the S&P MidCap 400 Index and the S&P SmallCap 600
Index, have been more volatile than, and at times have performed quite
differently than stocks in the S&P 500 Index.
39
<PAGE> 42
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
ASSET MANAGER FUND VS
AVERAGE LIPPER FLEXIBLE PORTFOLIO FUND AND
SALOMON SMITH BARNEY BIG BOND INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
AVERAGE LIPPER FLEXIBLE SALOMON SMITH BARNEY BIG
ASSET MANAGER FUND PORTFOLIO FUND BOND INDEX
------------------ ---------------------------- ------------------------
<S> <C> <C> <C>
1/2/91 $ 250000.00 $ 250000.00 $ 250000.00
91 294750.00 313558.00 289968.00
92 315660.00 338970.00 311935.00
93 343407.00 375676.00 342897.00
94 340450.00 367754.00 333138.00
95 431737.00 459083.00 394858.00
96 501515.00 521059.00 409133.00
97 635368.00 617234.00 448509.00
98 770743.00 702866.00 487598.00
99 861906.00 787208.00 483528.00
00 as of 4/30/00 882130.00 796969.00 492667.00
</TABLE>
SOURCE: LIPPER INC.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
ASSET MANAGER FUND VS
AVERAGE LIPPER FLEXIBLE PORTFOLIO FUND AND
SALOMON SMITH BARNEY BIG BOND INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
AVERAGE LIPPER FLEXIBLE SALOMON SMITH BARNEY BIG
ASSET MANAGER FUND PORTFOLIO FUND BOND INDEX
------------------ ----------------------- ------------------------
<S> <C> <C> <C>
1/2/91 $ 250000.00 $ 250000.00 $ 250000.00
91 294750.00 313558.00 289968.00
92 315660.00 338970.00 311935.00
93 343407.00 375676.00 342897.00
94 340450.00 367754.00 333138.00
95 431341.00 459083.00 394858.00
96 499882.00 521059.00 409133.00
97 631366.00 617234.00 448509.00
98 763942.00 702866.00 487598.00
99 852031.00 787208.00 483528.00
00 as of 4/30/00 871490.00 796969.00 492667.00
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
-----------------------------------------------------------------------------------------------------------------
SIX-MONTH PERIOD ONE YEAR FIVE YEARS SINCE INCEPTION
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Asset Manager Fund Institutional Class 8.40% 8.52% 19.07% 14.46%
Asset Manager Fund Service Class(+) 8.33 8.29 18.76 14.31
Average Lipper flexible portfolio fund(++) 8.16 8.36 15.42 13.99
Salomon Smith Barney BIG Bond Index(sec.) 1.42 1.17 6.78 7.54
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
YEAR END DECEMBER 31
TEN SIX
MONTHS MONTHS
ENDED ENDED
OCTOBER 31 APRIL 30
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN* 17.9% 7.09% 8.79% -0.86% 26.81% 16.16% 26.69% 21.31% 5.58% 8.40%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized basis
of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class from
the Fund's inception (1/2/91) up to 12/31/94. Performance figures for these
two classes after this date will vary based on differences in their expense
structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Salomon Smith Barney Broad Investment Grade (BIG) Bond Index is an
unmanaged index that is considered to be representative of the U.S. bond
market. Returns reflect the reinvestment of all income and capital gains.
An investment cannot be made directly into an index.
40
<PAGE> 43
MAINSTAY
INSTITUTIONAL FUNDS INC.
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
LONG-TERM BONDS (19.5%)+
CORPORATE BONDS (7.4%)
PRINCIPAL
AMOUNT VALUE
-------------------------
<S> <C> <C>
AUTOMOBILES (0.1%)
Daimler-Benz North America
Corp. Series A
7.375%, due 9/15/06........... $ 1,000,000 $ 977,500
------------
BANKS--MONEY CENTER (0.4%)
International Bank for
Reconstruction & Development
(zero coupon), due 2/15/15
(d)........................... 5,197,000 1,805,958
Morgan (J.P.) & Co., Inc.
8.50%, due 8/15/03............ 500,000 511,875
------------
2,317,833
------------
BANKS--REGIONAL (0.5%)
National Bank of Canada Series
B
8.125%, due 8/15/04 (d)....... 2,850,000 2,874,937
------------
BEVERAGES--ALCOHOLIC (0.4%)
Bass North America Inc.
6.625%, due 3/1/03............ 2,250,000 2,188,125
------------
BROADCAST/MEDIA (0.1%)
Cox Communications Inc.
6.50%, due 11/15/02........... 1,000,000 966,250
------------
CHEMICALS (0.1%)
Aventis
7.75%, due 1/15/02 (d)........ 350,000 349,562
------------
COMMUNICATIONS--EQUIPMENT
MANUFACTURERS (0.5%)
Nortel Networks Corp.
6.875%, due 10/1/02 (d)....... 3,000,000 2,955,000
------------
CONSUMER FINANCE (0.3%)
Ford Motor Credit Co.
7.00%, due 9/25/01............ 1,600,000 1,590,000
------------
CONTAINERS--METAL & GLASS (0.8%)
Crown Cork & Seal Finance PLC
7.00%, due 12/15/06 (d)....... 5,000,000 4,656,250
------------
ELECTRIC POWER COMPANIES (1.3%)
Arkansas Power & Light Co.
6.00%, due 10/1/03............ 3,000,000 2,816,250
Citizens Utilities Co.
7.45%, due 1/15/04............ 1,000,000 988,750
Florida Power & Light Co.
6.875%, due 4/1/04............ 500,000 485,625
Houston Lighting & Power Co.
Series C
6.50%, due 4/21/03............ $ 2,500,000 $ 2,431,250
Philadelphia Electric Co.
5.625%, due 11/1/01........... 1,000,000 972,500
------------
7,694,375
------------
FINANCIAL--MISCELLANEOUS (0.2%)
Ambac Financial Group Inc.
9.375%, due 8/1/11............ 1,000,000 1,128,750
------------
INSURANCE--PROPERTY & CASUALTY (0.1%)
American Re Corp. Series B
7.45%, due 12/15/26........... 920,000 877,450
------------
INVESTMENT BANK/BROKERAGE (0.1%)
Bear Stearns Cos., Inc. (The)
6.625%, due 1/15/04........... 500,000 477,500
Paine Webber Group, Inc.
7.75%, due 9/1/02............. 400,000 397,000
------------
874,500
------------
OIL & WELL--EQUIPMENT & SERVICES (0.1%)
Petroleum Geo-Services ASA
6.625%, due 3/30/08 (d)....... 1,000,000 912,500
------------
OIL--INTEGRATED DOMESTIC (0.1%)
Occidental Petroleum Corp.
10.125%, due 11/15/01......... 500,000 512,500
------------
OIL--INTEGRATED INTERNATIONAL (1.3%)
Imperial Oil Ltd.
8.30%, due 8/20/01 (d)........ 6,000,000 6,067,500
Societe Nationale Elf Aquitaine
8.00%, due 10/15/01 (d)....... 2,000,000 2,020,000
------------
8,087,500
------------
PAPER & FOREST PRODUCTS (0.1%)
Georgia-Pacific Corp.
9.125%, due 7/1/22............ 500,000 485,625
------------
TELEPHONE (0.9%)
GTE South Inc. Series C
6.00%, due 2/15/08............ 1,300,000 1,157,897
New York Telephone Co.
6.125%, due 1/15/10........... 5,000,000 4,402,210
------------
5,560,107
------------
Total Corporate Bonds
(Cost $49,211,678)............ 45,008,764
------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
41
<PAGE> 44
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
U.S. GOVERNMENT &
FEDERAL AGENCIES (12.1%)
PRINCIPAL
AMOUNT VALUE
-------------------------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION
(MORTGAGE PASS-THROUGH SECURITIES) (0.1%)
7.75%, due 10/1/07............ $ 329,332 $ 329,125
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION GOLD (MORTGAGE
PASS-THROUGH SECURITIES) (1.9%)
6.00%, due 1/1/26-1/1/28...... 941,081 853,730
6.50%, due 2/1/27-10/1/29..... 9,861,712 9,214,487
7.00%, due 3/1/26-10/1/26..... 593,922 568,865
7.50%, due 7/1/11-9/1/11...... 419,820 417,457
8.00%, due 10/1/11-11/1/11.... 402,008 406,277
------------
11,460,816
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(MORTGAGE PASS-THROUGH SECURITIES) (1.7%)
6.50%, due 11/1/03-7/1/29..... 8,422,701 7,875,964
7.00%, due 10/1/03-6/1/26..... 789,783 762,379
7.50%, due 7/1/11-10/1/11..... 305,306 303,587
8.00%, due 7/1/09-11/1/11..... 604,916 611,152
8.50%, due 6/1/26-10/1/26..... 118,838 120,509
9.00%, due 6/1/26-9/1/26...... 296,261 304,314
------------
9,977,905
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION I (MORTGAGE
PASS-THROUGH SECURITIES) (1.1%)
6.50%, due 2/15/29-8/15/29.... 4,928,827 4,617,671
7.00%, due 7/15/11-10/15/11... 657,529 644,990
7.50%, due 3/15/26-6/15/26.... 540,981 532,016
8.00%, due 8/15/26-10/15/26... 418,361 419,407
8.50%, due 11/15/26........... 172,807 176,047
9.00%, due 4/15/25-11/15/26... 200,042 206,730
------------
6,596,861
------------
RESOLUTION FUNDING CORPORATION (0.2%)
(zero coupon), due 10/15/10... 2,600,000 1,286,454
------------
UNITED STATES TREASURY BONDS (2.5%)
5.25%, due 2/15/29............ 10,650,000 9,355,386
6.125%, due 11/15/27.......... 1,500,000 1,484,055
6.25%, due 8/15/23............ 1,000,000 1,000,470
8.125%, due 5/15/21........... 1,000,000 1,214,450
10.625%, due 8/15/15.......... 1,000,000 1,414,800
11.875%, due 11/15/03......... 700,000 813,162
------------
15,282,323
------------
UNITED STATES TREASURY NOTES (4.6%)
4.75%, due 11/15/08........... 10,000,000 8,939,000
5.625%, due 12/31/02.......... 8,500,000 8,289,455
5.75%, due 8/15/03............ 2,300,000 2,242,063
6.00%, due 8/15/04............ 4,400,000 4,307,864
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
UNITED STATES TREASURY NOTES (CONTINUED)
<S> <C> <C>
7.00%, due 7/15/06............ $ 2,100,000 $ 2,149,161
7.50%, due 11/15/01-5/15/02... 2,000,000 2,026,210
------------
27,953,753
------------
Total U.S. Government & Federal
Agencies
(Cost $75,449,214)............ 72,887,237(f)
------------
Total Long-Term Bonds
(Cost $124,660,892)........... 117,896,001
------------
<CAPTION>
COMMON STOCKS (42.4%)
SHARES
-----------
<S> <C> <C>
ADVERTISING & MARKETING SERVICES (0.1%)
Acxiom Corp. (a)............... 4,629 124,983
Advo, Inc. (a)................. 1,334 40,020
Catalina Marketing Corp. (a)... 1,188 120,285
Ha-Lo Industries, Inc. (a)..... 3,165 23,144
Harte-Hanks, Inc. ............. 3,671 90,857
Information Resources, Inc.
(a)........................... 1,830 11,552
Snyder Communications Inc.
(a)........................... 4,648 110,390
True North Communications
Inc. ......................... 3,131 128,958
------------
650,189
------------
AEROSPACE/DEFENSE (0.3%)
AAR Corp. ..................... 1,766 26,600
Alliant Techsystems, Inc.
(a)........................... 611 42,541
Be Aerospace, Inc. (a)......... 1,616 11,918
Boeing Co. (The)............... 12,768 506,730
Cordant Technologies Inc. ..... 1,963 111,155
General Dynamics Corp. ........ 2,936 171,756
Goodrich (B.F.) Co. (The)...... 1,623 51,733
Litton Industries, Inc. (a).... 2,434 105,727
Lockheed Martin Corp. ......... 5,808 144,474
Northrop Grumman Corp. ........ 1,051 74,490
Orbital Sciences Corp. (a)..... 2,431 30,691
Precision Castparts Corp. ..... 1,316 54,943
Raytheon Co. Class B........... 5,079 112,690
Rockwell International
Corp. ........................ 2,846 112,061
Sequa Corp. (a)................ 554 27,285
Teledyne Technologies Inc.
(a)........................... 1,755 30,713
United Technologies Corp. ..... 6,993 434,877
------------
2,050,384
------------
AGRICULTURAL PRODUCTS (0.0%) (b)
Corn Products International,
Inc. ......................... 2,420 58,080
Delta & Pine Land Co. ......... 2,516 52,836
DIMON Inc. .................... 2,893 6,871
Universal Corp. ............... 1,606 30,313
------------
148,100
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
42
<PAGE> 45
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
AIR FREIGHT (0.1%)
Airborne Freight Corp. ........ 2,600 $ 55,738
Circle International Group
Inc. ......................... 1,124 29,856
CNF Transportation Inc. ....... 2,586 72,246
EGL Inc. (a)................... 1,873 42,962
Expeditors International of
Washington, Inc. ............. 3,277 140,092
Fritz Cos., Inc. (a)........... 2,381 22,917
------------
363,811
------------
AIRLINES (0.1%)
Alaska Air Group, Inc. (a)..... 1,412 40,595
AMR Corp. (a).................. 2,263 77,083
Atlantic Coast Airlines
Holdings, Inc. (a)............ 1,205 35,999
Delta Air Lines, Inc. ......... 1,924 101,491
Mesa Air Group, Inc. (a)....... 2,223 14,450
Midwest Express Holdings, Inc.
(a)........................... 918 23,237
Skywest, Inc. ................. 1,600 67,400
Southwest Airlines Co. ........ 7,471 162,027
US Airways Group, Inc. (a)..... 1,126 31,317
------------
553,599
------------
ALUMINUM (0.1%)
Alcan Aluminum Ltd. ........... 3,301 108,108
Alcoa Inc. .................... 5,447 353,374
Commonwealth Industries Inc. .. 1,080 8,100
Reynolds Metals Co. ........... 940 62,510
------------
532,092
------------
AUTO PARTS & EQUIPMENT (0.2%)
Applied Industrial Technology
Inc. ......................... 1,349 23,439
Arvin Industries, Inc. ........ 1,381 30,037
Bandag, Inc. .................. 1,171 27,957
Borg-Warner Automotive, Inc. .. 1,446 60,461
Cooper Tire & Rubber Co. ...... 1,088 14,688
Delphi Automotive Systems
Corp. ........................ 8,278 158,317
Federal-Mogul Corp. ........... 3,947 53,531
Gentex Corp. (a)............... 4,761 153,542
Genuine Parts Co. ............. 2,609 68,486
Goodyear Tire & Rubber Co.
(The)......................... 2,254 62,267
Intermet Corp. ................ 1,647 12,147
Lear Corp. (a)................. 3,587 107,386
Mascotech Inc. ................ 2,896 33,485
Meritor Automotive Inc. ....... 3,332 49,980
Midas, Inc. ................... 1,057 26,755
Modine Manufacturing Co. ...... 1,568 34,594
Simpson Industries, Inc. ...... 1,170 12,066
Standard Motor Products,
Inc. ......................... 844 9,442
Superior Industries
International, Inc. .......... 1,425 45,867
TBC Corp. (a).................. 1,376 7,568
Tenneco Automotive Inc. ....... 2,188 19,418
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
AUTO PARTS & EQUIPMENT (CONTINUED)
Tower Automotive, Inc. (a)..... 3,045 $ 47,578
Wynn's International, Inc. .... 1,212 16,817
------------
1,075,828
------------
AUTOMOBILES (0.3%)
Ford Motor Co. ................ 17,807 973,820
General Motors Corp. .......... 9,439 883,726
------------
1,857,546
------------
BANKS--MONEY CENTER (0.5%)
Bank of America Corp. ......... 25,195 1,234,555
Chase Manhattan Corp. (The).... 12,153 875,776
First Union Corp. ............. 14,611 465,726
Morgan (J.P.) & Co., Inc. ..... 2,539 325,944
------------
2,902,001
------------
BANKS--REGIONAL (1.5%)
AmSouth Bancorp................ 5,742 83,618
Associated Bancorp............. 3,420 87,424
Bank of New York Co., Inc.
(The)......................... 10,768 442,161
Bank One Corp. ................ 16,844 513,742
Banknorth Group, Inc. ......... 1,516 36,195
BB&T Corp. .................... 5,107 135,974
CCB Financial Corp. ........... 2,164 85,613
Centura Banks, Inc. ........... 2,562 105,843
Chittenden Corp. .............. 1,841 48,902
City National Corp. ........... 2,545 93,688
Comerica Inc. ................. 2,353 99,708
Commerce Bancorp, Inc. ........ 1,913 75,922
Commercial Federal Corp. ...... 3,743 58,250
Community First Bankshares,
Inc. ......................... 3,244 54,743
Compass Bancshares, Inc. ...... 6,076 112,406
Cullen/Frost Bankers, Inc. .... 3,449 85,147
Fifth Third Bancorp............ 4,416 278,760
First Bancorp.................. 1,851 32,740
First Midwest Bancorp, Inc. ... 2,671 66,441
First Security Corp. .......... 10,465 147,818
First Tennessee National
Corp. ........................ 6,970 132,430
First Virginia Banks, Inc. .... 2,656 96,944
Firstar Corp. ................. 14,642 364,220
Firstmerit Corp. .............. 4,801 78,616
FleetBoston Financial Corp. ... 13,671 484,466
Hibernia Corp. Class A......... 8,570 91,056
Hudson United Bancorp.......... 3,280 74,005
Huntington Bancshares Inc. .... 3,347 61,083
KeyCorp........................ 6,580 121,730
Keystone Financial, Inc. ...... 2,604 39,060
Marshall & Ilsley Corp. ....... 5,694 264,415
Mellon Financial Corp. ........ 7,729 248,294
Mercantile Bankshares Corp. ... 3,685 105,023
National City Corp. ........... 9,226 156,842
National Commerce Bancorp...... 5,786 95,107
North Fork Bancorp............. 9,424 152,551
Northern Trust Corp. .......... 3,368 215,973
Old Kent Financial Corp. ...... 1,900 57,238
Pacific Century Financial
Corp. ........................ 4,279 87,987
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
43
<PAGE> 46
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
BANKS--REGIONAL (CONTINUED)
PNC Financial Services Group,
Inc. (The)..................... 4,282 $ 186,802
Provident Bankshares Corp. .... 1,740 26,005
Provident Financial Group
Inc. ......................... 2,595 76,066
Regions Financial Corp. ....... 3,328 68,016
Riggs National Corp. .......... 1,839 24,941
Silicon Valley Bancshares
(a)........................... 1,450 89,538
South Financial Group Inc. .... 1,671 23,185
SouthTrust Corp. .............. 2,413 57,610
Southwest Bancorp of Texas
(a)........................... 1,820 35,604
State Street Corp. ............ 2,342 226,881
Summit Bancorp................. 2,582 65,518
SunTrust Banks, Inc. .......... 4,707 238,880
Susquehanna Bancshares, Inc. .. 2,402 33,178
Synovus Financial Corp. ....... 3,979 73,860
TCF Financial Corp. ........... 4,434 103,645
Trustco Bank Corp., NY......... 3,479 41,531
Union Planters Corp. .......... 2,099 59,428
United Bankshares, Inc. ....... 2,776 60,552
U.S. Bancorp................... 10,754 218,441
Wachovia Corp. ................ 3,116 195,334
Wells Fargo Co. ............... 24,285 997,203
Westamerica Bancorp............ 2,010 50,376
Whitney Holding Corp. ......... 1,467 51,162
Wilmington Trust Corp. ........ 1,741 80,304
Zions Bancorp.................. 4,571 189,696
------------
8,845,891
------------
BANKS--SAVINGS & LOANS (0.1%)
Anchor Bancorp Wisconsin,
Inc. ......................... 1,612 25,389
Downey Financial Corp. ........ 1,829 54,641
Golden West Financial Corp. ... 2,387 81,456
MAF Bancorp Inc. .............. 1,563 29,306
Queens County Bancorp Inc. .... 1,376 27,950
Staten Island Bancorp, Inc. ... 2,574 44,241
Washington Mutual, Inc. ....... 8,545 218,432
------------
481,415
------------
BEVERAGES--ALCOHOLIC (0.1%)
Anheuser-Busch Cos., Inc. ..... 6,913 487,799
Beringer Wine Estates Holdings,
Inc. Class B (a).............. 1,276 46,096
Brown-Forman Corp. Class B..... 1,064 58,055
Canandaigua Brands, Inc. Class
A (a)......................... 1,173 59,090
Coors (Adolph) Co. Class B..... 533 27,183
------------
678,223
------------
BEVERAGES--SOFT DRINKS (0.4%)
Coca-Cola Bottling Co. ........ 567 28,917
Coca-Cola Co. (The)............ 36,381 1,712,181
Coca-Cola Enterprises Inc. .... 6,293 134,119
PepsiCo, Inc. ................. 21,470 787,681
Triarc Cos., Inc. Class A
(a)........................... 1,537 31,701
------------
2,694,599
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
BIOTECHNOLOGY (0.5%)
Advanced Tissue Sciences, Inc.
(a)........................... 3,677 $ 21,143
Alliance Pharmaceutical Corp.
(a)........................... 3,052 24,225
Biomatrix, Inc. (a)............ 1,494 28,479
Bio-Technology General Corp.
(a)........................... 3,437 48,333
Cephalon Inc. (a).............. 2,105 118,406
Chiron Corp. (a)............... 9,711 439,423
Cor Therapeutics, Inc. (a)..... 1,633 124,414
Enzo Biochem, Inc. (a)......... 1,631 66,056
Genzyme Corp. (a).............. 4,497 219,510
Gilead Sciences, Inc. (a)...... 2,348 127,232
IDEC Pharmaceuticals Corp.
(a)........................... 2,748 175,872
IDEXX Laboratories, Inc. (a)... 2,375 62,344
Immune Response Corp. (a)...... 1,684 14,103
Incyte Pharmaceuticals, Inc.
(a)........................... 1,521 117,117
Liposome Co., Inc. (a)......... 2,544 44,520
MedImmune, Inc. (a)............ 3,604 576,415
Millennium Pharmaceuticals Inc.
(a)........................... 6,825 541,734
North American Vaccine, Inc.
(a)........................... 2,135 8,006
Organogenesis Inc. (a)......... 1,979 22,635
Protein Design Labs Inc. (a)... 1,216 123,424
Regeneron Pharmaceuticals, Inc.
(a)........................... 2,204 62,952
Techne Corp. (a)............... 1,316 93,601
Vertex Pharmaceuticals, Inc.
(a)........................... 1,669 87,205
------------
3,147,149
------------
BROADCAST/MEDIA (0.6%)
CBS Corp. (a).................. 11,316 664,815
Chris-Craft Industries, Inc.
(a)........................... 1,852 113,820
Clear Channel Communications,
Inc. (a)...................... 4,983 358,776
Comcast Corp. Special Class A
(a)........................... 13,659 547,214
Hispanic Broadcasting Corp.
Class A (a)................... 2,905 293,587
MediaOne Group Inc. (a)........ 9,074 686,221
Univision Communications Class
A (a)......................... 5,449 595,303
Westwood One, Inc. (a)......... 5,930 209,774
------------
3,469,510
------------
BUILDING MATERIALS (0.1%)
Apogee Enterprises, Inc. ...... 1,803 6,423
Elcor Corp. ................... 1,273 40,497
Granite Construction Inc. ..... 1,445 34,319
Martin Marietta Materials,
Inc. ......................... 2,497 132,341
Masco Corp. ................... 6,492 145,664
Owens Corning.................. 850 15,460
Sherwin-Williams Co. (The)..... 2,587 64,352
Simpson Manufacturing Co., Inc.
(a)........................... 781 35,340
Southdown, Inc. ............... 1,919 111,542
Universal Forest Products,
Inc. ......................... 1,318 17,793
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
44
<PAGE> 47
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
BUILDING MATERIALS (CONTINUED)
USG Corp. (a).................. 2,643 $ 110,345
Vulcan Materials Co. .......... 1,500 65,719
------------
779,795
------------
CHEMICALS (0.5%)
Air Products & Chemicals,
Inc. ......................... 3,375 104,836
Airgas, Inc. (a)............... 3,719 21,849
Albemarle Corp. ............... 2,499 52,323
Cabot Corp. ................... 3,586 96,822
Chemfirst Inc. ................ 1,184 22,940
CK Witko Corp. ................ 6,358 74,707
Cytec Industries Inc. (a)...... 2,257 67,992
Dexter Corp. (The)............. 1,232 67,606
Dow Chemical Co. (The)......... 3,242 366,346
Du Pont (E.I.) De Nemours &
Co. .......................... 15,364 728,830
Eastman Chemical Co. .......... 1,230 64,344
Ethyl Corp. ................... 4,462 13,944
Ferro Corp. ................... 1,886 43,142
Geon Co. (The)................. 1,540 33,688
Georgia Gulf Corp. ............ 1,655 39,823
H.B. Fuller Co. ............... 751 28,867
Hanna (M.A.) Co. .............. 2,614 30,061
Hercules Inc. ................. 1,439 22,394
IMC Global Inc. ............... 6,120 94,478
Lubrizol Corp. ................ 2,919 74,799
Lyondell Chemical Co. ......... 6,286 115,505
Minerals Technologies Inc. .... 1,131 52,309
Mississippi Chemical Corp. .... 1,698 13,053
Olin Corp. .................... 2,408 42,742
Praxair Inc. .................. 2,368 105,228
Rohm & Haas Co. ............... 3,127 111,399
RPM, Inc. ..................... 5,694 57,652
Schulman (A.) Inc. ............ 1,649 21,231
Solutia Inc. .................. 5,888 80,224
Union Carbide Corp. ........... 1,950 115,050
------------
2,764,184
------------
CHEMICALS--DIVERSIFIED (0.1%)
Avery Dennison Corp. .......... 1,752 114,975
Engelhard Corp. ............... 1,849 32,473
FMC Corp. (a).................. 478 27,813
Penford Corp. ................. 482 8,134
PPG Industries, Inc. .......... 2,605 141,647
------------
325,042
------------
CHEMICALS--SPECIALTY (0.1%)
Arch Chemicals, Inc. .......... 1,464 28,914
Cambrex Corp. ................. 1,598 65,518
Grace (W.R.) & Co. (a)......... 1,054 13,702
Great Lakes Chemical Corp. .... 870 23,436
Lilly Industries, Inc. Class
A............................. 1,509 16,410
MacDermid, Inc. ............... 2,024 47,437
Material Sciences Corp. (a).... 998 10,604
McWhorter Technologies, Inc.
(a)........................... 646 9,771
Om Group, Inc. ................ 1,545 71,070
Omnova Solutions Inc. (a)...... 2,715 16,290
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
CHEMICALS--SPECIALTY (CONTINUED)
Quaker Chemical Corp. ......... 580 $ 9,751
Sigma-Aldrich Corp. ........... 1,456 42,770
------------
355,673
------------
COMMERCIAL & CONSUMER SERVICES (0.7%)
Aaron Rents, Inc. ............. 1,293 18,748
Administaff, Inc. (a).......... 876 35,259
Angelica Corp. ................ 564 3,737
Apollo Group Inc. Class A
(a)........................... 4,054 117,566
Banta Corp. ................... 1,422 27,818
Central Parking Corp. ......... 2,394 61,346
Cerner Corp. (a)............... 2,184 48,185
Checkfree Holdings Corp. (a)... 2,928 148,779
Chemed Corp. .................. 679 20,285
Choicepoint Inc. (a)........... 1,917 72,846
Cintas Corp. .................. 8,946 354,485
Comsat Corp. .................. 2,835 69,280
Concord EFS, Inc. (a).......... 10,994 245,991
Convergys Corp. (a)............ 8,164 359,216
Copart, Inc. (a)............... 3,488 60,168
CPI Corp. ..................... 587 14,015
CSG Systems International, Inc.
(a)........................... 2,771 127,812
DeVry, Inc. (a)................ 3,720 88,583
DST Systems, Inc. (a).......... 3,390 251,496
Fiserv, Inc. (a)............... 6,555 301,120
F.Y.I. Inc. (a)................ 944 25,311
G & K Services, Inc. Class A... 1,334 32,683
Insurance Auto Auctions, Inc.
(a)........................... 751 12,485
Jacobs Engineering Group Inc.
(a)........................... 1,389 43,493
Kelly Services, Inc. Class A... 1,919 45,217
Kroll-O'Gara Co. (The) (a)..... 1,443 11,093
Lennox International, Inc. .... 3,717 31,362
Manpower Inc. ................. 4,055 143,192
Modis Professional Services,
Inc. (a)...................... 5,134 38,826
Navigant Consulting Co. (a).... 2,226 22,121
Nova Corp. (a)................. 3,936 124,476
Ogden Corp. (a)................ 2,644 25,944
Pegasus Systems, Inc. (a)...... 1,322 23,466
Pittston Brink's Group......... 2,646 43,328
Powerwave Technologies, Inc.
(a)........................... 1,078 224,291
Pre-Paid Legal Services, Inc.
(a)........................... 1,465 46,880
Primark Corp. (a).............. 1,298 35,046
Profit Recovery Group
International, Inc. (a)....... 3,161 55,515
Regis Corp. ................... 2,646 30,925
Robert Half International, Inc.
(a)........................... 4,796 293,156
Rollins, Inc. ................. 1,608 23,115
StarTek, Inc. (a).............. 909 46,700
Stewart Enterprises, Inc. Class
A............................. 5,678 27,325
Sylvan Learning Systems Inc.
(a)........................... 2,724 41,030
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
45
<PAGE> 48
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
COMMERCIAL & CONSUMER SERVICES (CONTINUED)
Valassis Communications, Inc.
(a)............................ 3,007 $ 102,426
Viad Corp. .................... 5,077 128,829
------------
4,104,970
------------
COMMUNICATIONS--EQUIPMENT
MANUFACTURERS (2.8%)
Adaptive Broadband Corp. (a)... 2,193 71,273
ADC Telecommunications, Inc.
(a)........................... 4,400 267,300
Adtran, Inc. (a)............... 2,110 142,557
Allen Telecommunications Inc.
(a)........................... 1,796 31,879
Andrew Corp. (a)............... 1,218 35,855
Anixter International Inc.
(a)........................... 2,349 79,132
Aspect Communications Corp.
(a)........................... 3,160 112,180
Audiovox Corp. Class A (a)..... 1,397 47,935
Brightpoint, Inc. (a).......... 3,468 40,966
Cable Design Technologies Corp.
(a)........................... 1,835 62,849
Cabletron Systems, Inc. (a).... 2,751 62,929
C-Cube Microsystems Inc. (a)... 2,636 169,363
Cisco Systems, Inc. (a)........ 100,708 6,981,894
Commscope, Inc. (a)............ 3,300 156,750
Comverse Technology, Inc. (a).. 2,200 196,213
Digital Microwave Corp. (a).... 4,524 167,105
Harris Corp. .................. 3,696 119,427
Inter-Tel, Inc. ............... 1,683 34,081
L-3 Communications Holdings,
Inc. (a)...................... 1,752 93,294
Lucent Technologies Inc. ...... 46,908 2,917,091
Network Appliance, Inc. (a).... 4,536 335,381
Nortel Networks Corp. ......... 21,098 2,389,349
P-Com Inc. (a)................. 4,678 50,581
Plantronics, Inc. (a).......... 1,051 93,014
Polycom Inc. (a)............... 1,755 138,864
Proxim, Inc. (a)............... 762 58,626
QUALCOMM Inc. (a).............. 10,900 1,181,969
Sawtek Inc. (a)................ 2,259 108,008
Scientific-Atlanta, Inc. ...... 2,236 145,480
Symmetricom, Inc. (a).......... 975 11,578
Tellabs, Inc. (a).............. 5,912 324,052
3Com Corp. (a)................. 5,055 199,357
------------
16,826,332
------------
COMPUTER SOFTWARE & SERVICES (3.6%)
ACNielsen Corp. (a)............ 3,096 71,401
Adobe Systems Inc. ............ 1,770 214,059
Affiliated Computer Services,
Inc. Class A (a).............. 2,642 87,516
America Online, Inc. (a)....... 33,074 1,978,239
American Management Systems
Inc. (a)...................... 2,654 98,198
Aspen Technology, Inc. (a)..... 1,646 58,227
Autodesk, Inc. ................ 836 32,082
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES (CONTINUED)
Automatic Data Processing,
Inc. ......................... 9,303 500,618
Avid Technology, Inc. (a)...... 1,548 $ 21,285
Banyan Systems Inc. (a)........ 1,585 21,992
Barra, Inc. (a)................ 910 38,334
BMC Software Inc. (a).......... 3,466 162,252
Cadence Design Systems, Inc.
(a)........................... 13,018 218,865
Cambridge Technology Partners,
Inc. (a)...................... 3,229 35,519
Ceridian Corp. (a)............. 2,112 45,804
Citrix Systems, Inc. (a)....... 2,600 158,762
Comdisco, Inc. ................ 8,156 253,346
Computer Associates
International, Inc. .......... 8,699 485,513
Computer Sciences Corp. (a).... 2,486 202,764
Compuware Corp. (a)............ 5,450 68,466
Concord Communications, Inc.
(a)........................... 932 26,096
Dendrite International Inc.
(a)........................... 2,543 58,171
Electronic Arts Inc. (a)....... 3,435 207,817
Electronic Data Systems
Corp. ........................ 6,972 479,325
eLoyalty Corp. (a)............. 2,786 45,795
Epicor Software Corp. (a)...... 2,652 10,608
Equifax Inc. .................. 2,099 51,294
Fair, Isaac & Co., Inc. ....... 908 38,420
Filenet Corp. (a).............. 2,103 61,776
First Data Corp. .............. 6,163 300,061
Gartner Group Inc. Class B
(a)........................... 4,729 51,132
Great Plains Software Inc.
(a)........................... 1,070 45,274
Harbinger Corp. (a)............ 2,515 47,471
HNC Software Inc. (a).......... 1,595 78,952
Hyperion Solutions Corp. (a)... 2,080 63,082
Informix Corp. (a)............. 14,391 158,301
Intuit Inc. (a)................ 10,442 375,259
Investment Technology Group,
(a)........................... 1,658 62,175
Jack Henry & Associates,
Inc. ......................... 2,627 103,766
Keane, Inc. (a)................ 3,832 110,649
Kronos Inc. (a)................ 814 26,150
Legato Systems Inc. (a)........ 4,543 58,775
Macromedia, Inc. (a)........... 2,636 229,332
Mercury Interactive Corp.
(a)........................... 4,984 448,560
Microsoft Corp. (a)............ 76,606 5,343,269
Network Associates, Inc. (a)... 7,442 189,306
Novell, Inc. (a)............... 4,888 95,927
Oracle Corp. (a)............... 41,502 3,317,566
Parametric Technology Corp.
(a)........................... 4,048 33,017
Paychex, Inc. ................. 3,649 192,029
PeopleSoft, Inc. (a)........... 3,687 51,388
Phoenix Technologies Ltd.
(a)........................... 1,619 31,773
Policy Management Systems Corp.
(a)........................... 1,902 25,202
Progress Software Corp. (a).... 2,269 45,380
Project Software & Development,
Inc. (a)...................... 1,400 42,700
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
46
<PAGE> 49
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES (CONTINUED)
QRS Corp. (a).................. 878 $ 28,974
Radisys Corp. (a).............. 1,065 44,064
Rational Software Corp. (a).... 4,744 403,833
Remedy Corp. (a)............... 1,885 100,141
RSA Security Inc. (a).......... 2,505 147,012
Sabre Holdings Corp. (a)....... 1,935 67,604
Saga Systems, Inc. (a)......... 1,859 34,624
Shared Medical Systems Corp. .. 416 17,238
Siebel Systems, Inc. (a)....... 10,305 1,266,227
Structural Dynamics Research
Corp. (a)..................... 1,910 25,546
SunGuard (R) Data Systems Inc.
(a)........................... 6,855 236,926
Sybase, Inc.(R) (a)............ 4,358 87,977
Sykes Enterprises, Inc. (a).... 2,265 45,300
Symantec Corp. (a)............. 3,175 198,239
Synopsys, Inc. (a)............. 3,715 156,030
Systems & Computer Technology
Corp. (a)..................... 2,094 49,340
THQ, Inc. (a).................. 1,200 18,600
Titan Corp. (The) (a).......... 2,706 116,189
Transaction Systems Architects,
Inc. Class A (a).............. 1,746 28,482
VERITAS Software Corp. (a)..... 5,759 617,743
Verity, Inc. (a)............... 2,018 65,459
Yahoo! Inc. (a)................ 7,700 1,002,925
------------
22,017,513
------------
COMPUTER SYSTEMS (2.2%)
Analysts International
Corp. ........................ 1,468 16,332
Apple Computer, Inc. (a)....... 2,400 297,750
Ciber Inc. (a)................. 3,842 69,396
Compaq Computer Corp. ......... 24,927 729,115
Computer Task Group, Inc. ..... 1,356 11,526
Dell Computer Corp. (a)........ 37,684 1,888,910
EMC Corp. (a).................. 14,878 2,067,112
Gateway, Inc. (a).............. 4,660 257,465
Gerber Scientific, Inc. ....... 1,442 20,008
Hewlett-Packard Co. ........... 14,756 1,992,060
Inacom Corp. (a)............... 2,964 4,631
International Business Machines
Corp. ........................ 26,530 2,961,411
Intervoice-Brite, Inc. (a)..... 2,084 33,214
Lexmark International Group,
Inc. (a)...................... 1,900 224,200
MarchFirst, Inc. (a)........... 9,332 198,888
NCR Corp. (a).................. 1,403 54,191
Seagate Technology, Inc. (a)... 3,188 161,990
Silicon Graphics, Inc. (a)..... 2,801 20,132
Sun Microsystems, Inc. (a)..... 23,200 2,132,950
Unisys Corp. (a)............... 4,515 104,692
------------
13,245,973
------------
COMPUTERS--HARDWARE (0.1%)
Auspex Systems, Inc. (a)....... 1,786 13,618
Mentor Graphics Corp. (a)...... 3,432 45,045
National Instruments Corp.
(a)........................... 3,249 158,389
Quantum Corp. (a).............. 8,585 100,874
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
COMPUTERS--HARDWARE (CONTINUED)
Storage Technology Corp. (a)... 5,355 $ 69,615
Telxon Corp. (a)............... 1,057 15,590
------------
403,131
------------
COMPUTERS--NETWORKING (0.0%) (b)
Apex Inc. (a).................. 1,350 39,910
Digi Internatonal Inc. (a)..... 979 5,323
Network Equipment Technologies,
Inc. (a)...................... 1,393 11,492
Standard Microsystems Corp.
(a)........................... 1,012 13,156
------------
69,881
------------
COMPUTERS--PERIPHERALS (0.0%) (b)
Centigram Communications Corp.
(a)........................... 392 6,052
Cybex Computer Products Corp.
(a)........................... 1,251 34,246
Exabyte Corp. (a).............. 1,478 7,021
Hutchinson Technology Inc.
(a)........................... 1,608 20,502
Innovex, Inc. (a).............. 963 8,426
Komag, Inc. (a)................ 3,550 10,428
Micros Systems, Inc. (a)....... 1,078 43,389
Read-Rite Corp. (a)............ 3,244 9,732
Xircom Inc. (a)................ 1,929 76,075
------------
215,871
------------
CONGLOMERATES (0.0%) (b)
Textron Inc. .................. 2,232 138,244
------------
CONSTRUCTION & HOUSING (0.0%) (b)
Florida Rock Industries,
Inc. ......................... 1,202 38,915
Texas Industries Inc. ......... 1,368 44,631
------------
83,546
------------
CONSUMER FINANCE (0.0%) (b)
Americredit Corp. (a).......... 4,862 90,859
Cash America International,
Inc. ......................... 1,649 14,841
------------
105,700
------------
CONSUMER PRODUCTS (0.1%)
Action Performance Cos., Inc.
(a)........................... 1,067 9,870
Blyth Industries, Inc. ........ 2,570 76,297
Carter-Wallace, Inc. .......... 2,406 53,534
Church & Dwight Co., Inc. ..... 2,077 37,126
Cross (A.T.) Co. Class A (a)... 1,107 5,950
Cyrk, Inc. (a)................. 1,023 9,015
Department 56, Inc. (a)........ 1,128 10,293
Dial Corp. (The)............... 5,633 78,510
Energizer Holdings, Inc. (a)... 5,378 91,762
Enesco Group Inc. ............. 876 3,942
Fossil, Inc. (a)............... 2,082 43,202
Franklin Covey Co. (a)......... 1,313 11,981
Jan Bell Marketing, Inc. (a)... 1,462 4,295
Lancaster Colony Corp. ........ 2,117 55,571
Perrigo Co. (a)................ 3,922 22,306
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
47
<PAGE> 50
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
CONSUMER PRODUCTS (CONTINUED)
Russ Berrie & Co., Inc. ....... 1,335 $ 24,864
Swiss Army Brands, Inc. (a).... 510 2,837
------------
541,355
------------
CONTAINERS--METAL & GLASS (0.0%) (b)
Ball Corp. .................... 434 13,671
Crown Cork & Seal Co., Inc. ... 1,758 28,568
Owens-Illinois, Inc. (a)....... 2,349 31,712
------------
73,951
------------
CONTAINERS--PAPER (0.0%) (b)
Bemis Co., Inc. ............... 821 30,223
Pactiv Corp. (a)............... 2,470 20,223
Temple-Inland Inc. ............ 811 40,651
------------
91,097
------------
COSMETICS/PERSONAL CARE (0.1%)
Alberto-Culver Co. Class B..... 815 19,254
Avon Products Inc. ............ 3,539 146,868
Gillette Co. (The)............. 15,942 589,854
International Flavors &
Fragrances Inc. .............. 1,613 55,548
Natures Sunshine Products
Inc. ......................... 1,116 9,486
NBTY, Inc. (a)................. 4,297 76,272
------------
897,282
------------
DATA PROCESSING SERVICES (0.1%)
Billing Concepts Corp. (a)..... 2,757 14,776
Bisys Group, Inc. (The) (a).... 1,793 112,175
DBT Online, Inc. (a)........... 1,240 24,412
Factset Research Systems
Inc. ......................... 2,055 59,081
Medquist Inc. (a).............. 2,333 82,676
National Computer Systems,
Inc........................... 2,079 106,939
National Data Corp. ........... 2,138 59,329
------------
459,388
------------
ELECTRIC POWER COMPANIES (1.0%)
Allegheny Energy Inc. ......... 5,904 179,334
Alliant Energy Corp. .......... 4,209 126,270
Ameren Corp. .................. 2,005 73,558
American Electric Power Co.,
Inc. ......................... 2,842 104,088
Bangor Hydro-Electric Co. ..... 478 7,887
Black Hills Corp. ............. 1,141 26,172
Carolina Power & Light Co. .... 2,339 85,520
Central & South West Corp. .... 3,173 68,814
Central Vermont Public Service
Corp. ........................ 745 8,102
CH Energy Group Inc. .......... 1,095 36,067
Cinergy Corp. ................. 2,388 63,879
Cleco Corp. ................... 1,203 41,428
CMP Group Inc. ................ 1,734 50,178
CMS Energy Corp. .............. 1,729 32,851
Conectiv, Inc. ................ 4,972 88,253
Consolidated Edison, Inc. ..... 3,220 113,304
Constellation Energy Group,
Inc. ......................... 2,163 71,514
Dominion Resources, Inc. ...... 3,499 157,455
DPL Inc. ...................... 7,144 166,098
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
ELECTRIC POWER COMPANIES (CONTINUED)
DQE, Inc. ..................... 4,026 $ 153,995
DTE Energy Co. ................ 2,146 70,013
Duke Energy Corp. ............. 5,370 308,775
Edison International........... 5,197 99,068
Energy East Corp. ............. 6,622 138,234
Entergy Corp. ................. 3,522 89,591
FirstEnergy Corp. ............. 3,420 86,996
Florida Progress Corp. ........ 1,474 72,226
FPL Group Inc. ................ 2,602 117,578
GPU Inc. ...................... 1,931 54,189
Green Mountain Power Corp. .... 350 2,625
Hawaiian Electric Industries,
Inc. ......................... 1,722 63,714
Idacorp, Inc. ................. 2,011 74,156
Ipalco Enterprises Inc. ....... 4,583 93,665
Kansas City Power & Light
Co. .......................... 3,309 85,000
LG&E Energy Corp. ............. 6,932 161,602
Minnesota Power Inc. .......... 3,927 72,404
Montana Power Co. ............. 5,891 259,572
New Century Energies Inc. ..... 1,614 52,657
Niagara Mohawk Holdings Inc.
(a)........................... 2,758 38,267
Nisource Inc. ................. 6,685 123,673
Northeast Utilities............ 7,641 164,282
Northern States Power Co. ..... 2,187 47,704
Northwestern Corp. ............ 1,501 34,523
NSTAR.......................... 3,215 141,661
OGE Energy Corp. .............. 4,159 82,400
PECO Energy Co. ............... 2,796 116,558
PG&E Corp. .................... 5,668 147,014
Pinnacle West Capital Corp. ... 1,300 45,663
Potomac Electric Power Co. .... 6,337 148,523
PPL Corp. ..................... 2,283 54,507
Public Service Co. of New
Mexico........................ 2,180 39,240
Public Service Enterprise Group
Inc. ......................... 3,325 119,284
Puget Sound Energy, Inc. ...... 4,521 107,374
Reliant Energy, Inc. .......... 4,415 117,549
Scana Corp. ................... 5,537 143,270
Sierra Pacific Resources....... 4,192 63,404
Southern Co. (The)............. 9,954 248,228
Teco Energy Inc. .............. 6,920 151,375
Texas Utilities Co. ........... 4,185 140,982
Unicom Corp. .................. 3,246 129,029
Unisource Energy Corp. ........ 600 9,750
United Illuminating Co.
(The)......................... 931 42,826
Utilicorp United Inc. ......... 4,967 95,615
Wisconsin Energy Corp. ........ 6,302 134,705
------------
6,244,238
------------
ELECTRICAL EQUIPMENT (1.7%)
Artesyn Technologies, Inc.
(a)........................... 2,418 58,636
Baldor Electric Co. ........... 2,332 43,288
Belden Inc. ................... 1,582 46,966
Benchmark Electronics, Inc.
(a)........................... 1,054 42,358
Black Box Corp. (a)............ 1,272 97,864
C&D Technologies, Inc. ........ 843 54,321
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
48
<PAGE> 51
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT (CONTINUED)
C-COR.net Corp. (a)............ 2,083 $ 81,497
Checkpoint Systems, Inc. (a)... 1,959 17,509
Cohu, Inc. .................... 1,288 49,024
Cooper Industries, Inc. ....... 1,534 52,635
Electro Scientific Industries,
Inc. (a)...................... 1,717 108,278
Emerson Electric Co. .......... 6,416 352,078
General Electric Co. (c)....... 48,168 7,574,418
Grainger (W.W.), Inc. ......... 1,511 65,540
Hadco Corp. (a)................ 886 72,929
Harman International........... 1,116 72,959
Harmon Industries, Inc. ....... 737 12,897
Itron, Inc. (a)................ 972 5,589
Kemet Corp. (a)................ 2,821 210,165
Molex Inc. .................... 2,875 157,945
Park Electrochemical Corp. .... 680 17,425
Plexus Corp. (a)............... 1,129 86,510
SLI, Inc. ..................... 2,326 33,146
Smith (A.O.) Corp. ............ 1,520 31,255
Solectron Corp. (a)............ 8,732 408,767
Technitrol, Inc. .............. 1,055 71,740
Thomas & Betts Corp. .......... 723 22,277
Three-Five Systems, Inc. (a)... 784 68,208
Vicor Corp. (a)................ 2,679 69,654
Watsco Inc. ................... 1,893 24,372
Zixit Corp. (a)................ 995 36,753
------------
10,047,003
------------
ELECTRONICS--COMPONENTS (1.2%)
American Power Conversion Corp.
(a)........................... 10,296 363,577
Arrow Electronics, Inc. (a).... 5,132 224,846
Atmel Corp. (a)................ 11,766 575,799
Avnet, Inc. ................... 2,346 184,454
Cirrus Logic, Inc. (a)......... 3,527 57,755
Cypress Semiconductor Corp.
(a)........................... 5,843 303,471
Hubbell Inc. Class B........... 3,461 90,202
Integrated Device Technology,
Inc. (a)...................... 5,000 240,313
Kent Electronics Corp. (a)..... 1,829 53,384
Magnetek, Inc. (a)............. 1,247 10,366
Maxim Integrated Products, Inc.
(a)........................... 14,842 961,947
Micrel, Inc. (a)............... 2,205 190,732
Microchip Technology Inc.
(a)........................... 4,095 254,146
Novellus Systems, Inc. (a)..... 6,720 448,140
NVIDIA Corp. (a)............... 1,642 146,343
Pioneer-Standard Electronics,
Inc. ......................... 1,769 27,088
Qlogic Corp. (a)............... 3,927 393,927
Sanmina Corp. (a).............. 6,804 408,665
SCI Systems, Inc. (a).......... 7,738 412,048
SPX Corp. (a).................. 1,667 183,162
Transwitch Corp. (a)........... 2,085 183,610
Triquint Semiconductor, Inc.
(a)........................... 2,023 207,990
Vishay Intertechnology, Inc.
(a)........................... 4,526 379,618
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
ELECTRONICS--COMPONENTS (CONTINUED)
Vitesse Semiconductor Corp.
(a)........................... 8,415 $ 572,746
Waters Corp. (a)............... 3,325 315,875
------------
7,190,204
------------
ELECTRONICS--DEFENSE (0.0%) (b)
Mercury Computer Systems, Inc.
(a)........................... 1,372 52,736
PerkinElmer, Inc. ............. 638 34,931
------------
87,667
------------
ELECTRONICS--INSTRUMENTATION (0.1%)
Alpha Industries, Inc. (a)..... 2,584 134,368
Analogic Corp. ................ 832 33,852
Coherent, Inc. (a)............. 1,613 93,251
Methode Electronics, Inc. Class
A............................. 2,338 97,429
Pe Corp.--Pe Biosystems Group.. 3,060 183,600
Tektronix, Inc. ............... 654 37,850
Trimble Navigation Ltd. (a).... 1,465 40,471
X-Rite, Inc. .................. 1,380 15,784
------------
636,605
------------
ELECTRONICS--SEMICONDUCTORS (2.5%)
Actel Corp. (a)................ 1,424 52,421
Adaptec, Inc. (a).............. 1,500 40,500
Advanced Micro Devices, Inc.
(a)........................... 2,123 186,293
Altera Corp. (a)............... 2,888 295,298
American Xtal Technology Inc.
(a)........................... 1,216 29,659
Analog Devices, Inc. (a)....... 5,200 399,425
Applied Materials, Inc. (a).... 11,254 1,145,798
Burr-Brown Corp. (a)........... 3,613 246,136
Conexant Systems, Inc. (a)..... 3,200 191,600
Dallas Semiconductor Corp. .... 3,752 161,102
Electroglas, Inc. (a).......... 1,294 50,142
General Semiconductor, Inc.
(a)........................... 2,393 47,860
Helix Technology Corp. ........ 1,451 74,092
Intel Corp. ................... 49,130 6,230,298
International Rectifier Corp.
(a)........................... 3,967 194,879
KLA-Tencor Corp. (a)........... 2,776 207,853
Kulicke & Soffa Industries,
Inc. (a)...................... 1,537 120,366
Lattice Semiconductor Corp.
(a)........................... 3,113 209,738
Linear Technology Corp. ....... 4,556 260,261
LSI Logic Corp. (a)............ 4,368 273,000
Micron Technology, Inc. (a).... 4,014 558,950
Motorola, Inc. ................ 10,399 1,238,131
National Semiconductor Corp.
(a)........................... 2,478 150,539
Photronics, Inc. (a)........... 1,556 51,834
S3 Inc. (a).................... 4,944 69,525
Silicon Valley Group, Inc.
(a)........................... 2,168 61,788
SpeedFam-IPEC, Inc. (a)........ 1,913 30,249
Teradyne, Inc. (a)............. 2,500 275,000
Texas Instruments Inc. ........ 11,946 1,945,705
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
49
<PAGE> 52
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
ELECTRONICS--SEMICONDUCTORS (CONTINUED)
Ultratech Stepper, Inc. (a).... 1,389 $ 20,748
Xilinx, Inc. (a)............... 4,600 336,950
------------
15,156,140
------------
EMPLOYMENT SERVICES (0.0%) (b)
CDI Corp. (a).................. 1,238 27,855
Interim Services Inc. (a)...... 4,126 70,658
Labor Ready, Inc. (a).......... 2,780 25,193
Staffmark, Inc. (a)............ 1,909 12,528
Volt Information Sciences, Inc.
(a)........................... 976 33,733
------------
169,967
------------
ENGINEERING & CONSTRUCTION (0.0%) (b)
Butler Manufacturing Co. ...... 457 10,768
Dycom Industries Inc. (a)...... 2,510 130,520
Fluor Corp. ................... 1,081 36,281
Foster Wheeler Corp. .......... 2,646 24,310
Morrison Knudsen Corp. (a)..... 3,401 31,247
Stone & Webster, Inc. (a)...... 849 11,196
URS Corp. (a).................. 1,031 13,145
------------
257,467
------------
ENTERTAINMENT (0.6%)
Carmike Cinemas, Inc. Class A
(a)........................... 739 4,249
GC Cos., Inc. (a).............. 506 16,445
Seagram Co. Ltd. (The)......... 6,333 341,982
Time Warner Inc. .............. 18,886 1,698,560
Viacom Inc. Class B (a)........ 10,197 554,462
Walt Disney Co. (The).......... 30,314 1,312,975
------------
3,928,673
------------
FACILITIES & ENVIRONMENTAL
SERVICES (0.0%) (b)
ABM Industries Inc. ........... 1,456 36,764
Tetra Tech Inc. (a)............ 2,501 58,930
------------
95,694
------------
FINANCIAL--MISCELLANEOUS (1.5%)
AFLAC Inc. .................... 3,882 189,490
Ambac Financial Group Inc. .... 3,738 179,424
American Express Co. .......... 6,571 986,061
American General Corp. ........ 3,753 210,168
Associates First Capital Corp.
Class A....................... 10,740 238,294
Astoria Financial Corp. ....... 2,907 80,124
Charter One Financial Inc. .... 11,342 230,384
Citigroup Inc. ................ 49,554 2,945,366
Dime Bancorp, Inc. ............ 5,925 111,094
Fannie Mae..................... 15,136 912,890
Finova Group Inc. ............. 3,273 41,935
Franklin Resources Inc. ....... 3,589 115,745
Freddie Mac.................... 10,286 472,513
Greenpoint Financial Corp. .... 5,764 107,355
MBIA Inc. ..................... 1,394 68,916
MBNA Corp. .................... 11,847 314,686
Morgan Stanley Dean Witter &
Co. .......................... 16,768 1,286,944
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
FINANCIAL--MISCELLANEOUS (CONTINUED)
Mutual Risk Management Ltd. ... 2,839 $ 44,537
NCO Group Inc. (a)............. 1,356 46,613
Pioneer Group, Inc. (The)
(a)........................... 1,722 48,216
PMI Group, Inc. (The).......... 2,388 115,669
Price (T. Rowe) Associates,
Inc. ......................... 1,900 72,438
Sei Investments Co. ........... 1,152 137,520
SLM Holding Corp. ............. 2,510 78,594
Sovereign Bancorp, Inc. ....... 11,723 80,596
U.S. Trust Corp. .............. 1,212 186,496
Webster Financial Corp. ....... 2,421 51,749
------------
9,353,817
------------
FOOD & BEVERAGES (0.6%)
Agribrands International Inc.
(a)........................... 663 24,821
American Italian Pasta Co.
Class A (a)................... 1,189 29,428
Bestfoods...................... 4,085 205,271
Bob Evans Farms, Inc. ......... 2,057 26,870
Campbell Soup Co. ............. 6,477 168,402
Chiquita Brands International,
Inc. (a)...................... 4,279 16,581
ConAgra, Inc. ................. 7,207 136,032
Dean Foods Co. ................ 1,977 48,436
Dole Food Co., Inc. ........... 2,985 52,424
Dreyer's Grand Ice Cream,
Inc. ......................... 1,481 35,544
Earthgrains Co. (The).......... 2,755 38,742
Flowers Industries, Inc. ...... 5,362 81,770
General Mills, Inc. ........... 4,548 165,434
Hain Food Group, Inc. (The)
(a)........................... 1,180 31,639
Heinz (H.J.) Co. .............. 5,327 181,118
Hershey Foods Corp. ........... 2,112 95,832
Hormel Foods Corp. ............ 7,630 116,357
IBP, Inc. ..................... 5,697 94,001
International Multifoods
Corp. ........................ 1,002 12,838
Interstate Bakeries Corp. ..... 3,654 46,589
J&J Snack Foods Corp. (a)...... 586 9,339
Kellogg Co. ................... 5,950 145,403
Lance, Inc. ................... 1,602 17,021
McCormick & Co., Inc. ......... 3,784 118,014
Michael Foods, Inc. ........... 1,318 28,255
Nabisco Group Holdings Corp. .. 4,798 61,774
Quaker Oats Co. (The).......... 1,979 129,006
Ralcorp Holdings, Inc. (a)..... 1,984 27,404
Ralston-Ralston Purina Group... 4,448 78,674
Sara Lee Corp. ................ 12,992 194,880
Smithfield Foods Inc. (a)...... 3,667 78,153
Smucker (J.M.) Co. (The)....... 1,549 24,784
Suiza Foods Corp. (a).......... 1,668 64,948
Tyson Foods, Inc. Class A...... 12,102 126,315
Unilever N.V. ................. 8,473 386,051
Universal Foods Corp. ......... 2,657 43,674
Whitman Corp. ................. 7,546 86,307
Wrigley (Wm.) Jr. Co. ......... 1,700 123,038
------------
3,351,169
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
50
<PAGE> 53
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
FOOD & HEALTH CARE DISTRIBUTORS (0.1%)
Bergen Brunswig Corp. Class A.. 7,189 $ 35,945
Bindley Western Industries,
Inc. ......................... 2,192 38,223
Cardinal Health, Inc. ......... 4,017 221,186
Fleming Cos. Inc. ............. 2,522 41,455
McKesson HBOC, Inc. ........... 4,112 69,390
Nash-Finch Co. ................ 737 5,435
Owens & Minor Inc. Holding
Co. .......................... 2,125 25,500
Patterson Dental Co. (a)....... 2,189 105,346
Performance Food Group Co.
(a)........................... 917 24,186
Priority Healthcare Corp. Class
B (a)......................... 1,421 78,688
PSS World Medical, Inc. (a).... 3,797 32,631
SUPERVALU Inc.................. 1,807 37,382
SYSCO Corp. ................... 4,843 182,218
United Natural Foods, Inc.
(a)........................... 1,186 17,938
------------
915,523
------------
GOLD & PRECIOUS METALS MINING (0.0%) (b)
Barrick Gold Corp. ............ 5,753 96,722
Coeur d'Alene Mines Corp. (a).. 1,896 4,740
Homestake Mining Co. .......... 3,839 23,034
Newmont Mining Corp. .......... 2,508 58,781
Placer Dome Inc. .............. 4,779 38,830
Stillwater Mining Co. (a)...... 2,461 68,908
------------
291,015
------------
HARDWARE & TOOLS (0.0%) (b)
Black & Decker Corp. (The)..... 1,317 55,396
Scotts Co. (The) Class A (a)... 1,816 65,603
Snap-On Inc. .................. 824 21,785
Stanley Works (The)............ 1,345 39,678
Toro Co. (The)................. 823 25,307
WD-40 Co. ..................... 1,004 20,017
------------
227,786
------------
HEALTH CARE--DIVERSIFIED (1.1%)
Abbott Laboratories............ 22,419 861,730
Allergan, Inc. ................ 1,880 110,685
American Home Products
Corp. ........................ 19,209 1,079,306
Bristol-Myers Squibb Co. ...... 29,191 1,530,703
Johnson & Johnson.............. 20,481 1,689,683
Mallinckrodt Inc. ............. 1,070 28,756
Sierra Health Services, Inc.
(a)........................... 1,746 6,220
Warner-Lambert Co. ............ 12,582 1,431,989
------------
6,739,072
------------
HEALTH CARE--DRUGS (1.6%)
Alpharma Inc. ................. 1,922 74,237
Barr Laboratories, Inc. (a).... 1,491 64,393
Cygnus, Inc. (a)............... 1,609 20,112
Dura Pharmaceuticals, Inc.
(a)........................... 2,873 37,349
Forest Laboratories Inc. (a)... 4,517 379,710
ICN Pharmaceuticals, Inc. ..... 4,189 105,510
IVAX Corp. (a)................. 8,462 231,647
Jones Pharmaceuticals Inc. .... 4,225 121,733
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
HEALTH CARE--DRUGS (CONTINUED)
Lilly (Eli) & Co. ............. 16,114 $ 1,245,814
Medicis Pharmaceutical Corp.
Class A (a)................... 1,896 82,950
Merck & Co., Inc. ............. 34,380 2,389,410
Mylan Laboratories Inc. ....... 6,914 196,185
Noven Pharmaceuticals, Inc.
(a)........................... 1,398 16,426
Pfizer Inc. ................... 57,110 2,405,759
Pharmacia Corp. ............... 18,267 912,208
Schering-Plough Corp. ......... 21,660 873,169
Sepracor Inc. (a).............. 3,543 325,956
Watson Pharmaceuticals, Inc.
(a)........................... 1,379 61,969
------------
9,544,537
------------
HEALTH CARE--HMOs (0.1%)
Aetna Inc. .................... 2,067 119,628
Coventry Health Care Inc.
(a)........................... 3,847 40,874
Humana Inc. (a)................ 2,518 19,357
UnitedHealth Group Inc. (a).... 2,511 167,452
U.S. Oncology Inc. (a)......... 5,579 19,178
Wellpoint Health Networks Inc.
(a)........................... 1,044 76,995
------------
443,484
------------
HEALTH CARE--HOSPITAL MANAGEMENT (0.1%)
Columbia/HCA Healthcare
Corp. ........................ 8,344 237,283
Magellan Health Services, Inc.
(a)........................... 2,078 7,792
Tenet Healthcare Corp. (a)..... 4,564 116,382
Universal Health Services, Inc.
Class B (a)................... 1,992 109,062
------------
470,519
------------
HEALTH CARE--MEDICAL PRODUCTS (0.6%)
Acuson Corp. (a)............... 1,429 17,595
ADAC Laboratories (a).......... 1,340 20,100
Bard (C.R.), Inc. ............. 736 32,062
Bausch & Lomb Inc. ............ 726 43,832
Baxter International Inc. ..... 4,301 280,103
Beckman Coulter Inc. .......... 1,553 100,654
Becton Dickinson & Co. ........ 3,741 95,863
Biomet, Inc. .................. 1,669 59,562
Boston Scientific Corp. (a).... 5,766 152,799
Conmed Corp. (a)............... 994 25,968
Cooper Cos., Inc. (The)........ 910 30,599
Datascope Corp. ............... 978 32,396
Dentsply International Inc. ... 2,823 82,043
Diagnostic Products Corp. ..... 888 27,250
Edwards Lifesciences Corp.
(a)........................... 3,111 46,668
Guidant Corp. (a).............. 4,413 253,196
Hologic, Inc. (a).............. 998 7,797
Invacare Corp. ................ 1,947 52,082
Laser Vision Centers, Inc.
(a)........................... 1,637 6,650
Medtronic, Inc. ............... 17,558 911,919
Mentor Corp. .................. 1,577 27,893
Minimed, Inc. (a).............. 1,663 204,445
Osteotech, Inc. (a)............ 922 6,569
Resmed, Inc. (a)............... 1,951 66,334
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
51
<PAGE> 54
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
HEALTH CARE--MEDICAL PRODUCTS (CONTINUED)
Respironics, Inc. (a).......... 1,903 $ 30,924
Sola International, Inc. (a)... 1,620 7,290
Spacelabs Medical, Inc. (a).... 614 7,291
St. Jude Medical, Inc. (a)..... 1,198 37,363
Steris Corp. (a)............... 3,608 32,472
Stryker Corp. ................. 5,184 372,600
Summit Technology, Inc. (a).... 3,037 26,953
Sunrise Medical, Inc. (a)...... 1,444 7,581
Sybron International Corp.
(a)........................... 5,565 173,211
Syncor International Corp.
(a)........................... 769 31,721
Theragenics Corp. (a).......... 1,917 19,050
Varian Medical Systems, Inc.
(a)........................... 2,006 80,240
Visx, Inc. (a)................. 3,438 54,364
Vital Signs, Inc. ............. 801 16,020
Wesley Jessen Visioncare, Inc.
(a)........................... 1,137 44,770
------------
3,526,229
------------
HEALTH CARE--MISCELLANEOUS (0.2%)
Alza Corp. (a)................. 1,506 66,358
Amgen Inc. (a)................. 14,968 838,208
Biogen, Inc. (a)............... 2,162 127,153
HEALTHSOUTH Corp. (a).......... 6,194 49,939
Manor Care, Inc. (a)........... 1,596 19,052
Quintiles Transnational Corp.
(a)........................... 1,700 24,331
------------
1,125,041
------------
HEALTH CARE--SERVICES (0.2%)
Advance Paradigm, Inc. (a)..... 1,393 17,412
Apria Healthcare Group Inc.
(a)........................... 2,782 38,774
Beverly Enterprises, Inc.
(a)........................... 5,479 18,492
Covance Inc. (a)............... 3,049 28,013
Curative Health Services, Inc.
(a)........................... 655 3,910
Express Scripts, Inc. Class A
(a)........................... 2,059 73,609
First Health Group Corp. (a)... 2,623 79,838
Foundation Health Systems, Inc.
(a)........................... 6,536 65,768
Hanger Orthopedic Group, Inc.
(a)........................... 1,240 6,200
Health Management Associates
Inc. Class A (a).............. 12,887 205,387
Hooper Holmes, Inc. ........... 4,202 73,010
Lincare Holdings Inc. (a)...... 2,889 88,114
Maximus, Inc. (a).............. 1,366 32,186
Omnicare, Inc. ................ 4,881 74,130
Orthodontic Centers of America,
Inc. (a)...................... 3,126 66,232
Oxford Health Plans, Inc.
(a)........................... 4,358 82,802
Pacificare Health Systems, Inc.
(a)........................... 2,329 119,798
Parexel International Corp.
(a)........................... 1,617 14,553
Pediatrix Medical Group, Inc.
(a)........................... 1,012 8,349
Pharmaceutical Product
Development, Inc. (a)......... 1,600 26,900
Quorum Health Group, Inc. (a).. 3,781 40,173
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
HEALTH CARE--SERVICES (CONTINUED)
Renal Care Group, Inc. (a)..... 2,901 $ 64,729
Trigon Healthcare Inc. (a)..... 2,099 75,433
------------
1,303,812
------------
HEAVY DUTY TRUCKS & PARTS (0.1%)
Cummins Engine Co., Inc. ...... 575 20,448
Dana Corp. .................... 2,442 74,176
Eaton Corp. ................... 1,015 85,260
ITT Industries, Inc. .......... 1,250 39,453
Navistar International Corp.
(a)........................... 962 33,670
Oshkosh Truck Corp. ........... 1,080 34,020
PACCAR Inc. ................... 1,140 54,221
Spartan Motors, Inc. (a)....... 814 3,460
Titan International, Inc. ..... 1,343 9,233
Wabash National Corp. ......... 1,493 21,742
------------
375,683
------------
HOMEBUILDING (0.1%)
Centex Corp. .................. 847 20,434
Champion Enterprises, Inc.
(a)........................... 3,097 21,872
Clayton Homes, Inc. ........... 7,466 70,927
D.R. Horton, Inc. ............. 4,012 51,905
Fleetwood Enterprises, Inc. ... 2,124 31,063
Kaufman & Broad Home Corp. .... 634 12,204
MDC Holdings Inc. ............. 1,450 27,641
NVR, Inc. (a).................. 600 37,350
Oakwood Homes Corp. ........... 3,061 8,992
Pulte Corp. ................... 598 12,857
Ryland Group Inc. ............. 926 18,636
Skyline Corp. ................. 568 11,573
Standard Pacific Corp. ........ 1,916 19,280
Toll Brothers, Inc. (a)........ 2,368 51,356
U.S. Home Corp. (a)............ 725 25,964
------------
422,054
------------
HOTEL/MOTEL (0.1%)
Carnival Corp. ................ 9,082 225,915
Harrah's Entertainment Inc.
(a)........................... 1,859 38,226
Hilton Hotels Corp. ........... 5,400 45,899
Marcus Corp. .................. 1,941 20,744
Marriott International, Inc.
Class A....................... 3,540 113,280
Prime Hospitality Corp. (a).... 3,174 29,359
------------
473,423
------------
HOUSEHOLD--FURNISHINGS & APPLIANCES (0.1%)
Armstrong World Industries,
Inc. ......................... 567 11,092
Bassett Furniture Industries,
Inc. ......................... 797 10,610
Ethan Allen Interiors Inc. .... 2,655 70,855
Fedders Corp. ................. 2,336 13,724
La-Z-Boy Inc. ................. 3,988 62,562
Leggett & Platt, Inc. ......... 3,000 64,125
Maytag Corp. .................. 1,322 45,526
Whirlpool Corp. ............... 1,092 71,117
------------
349,611
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
52
<PAGE> 55
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS (0.4%)
Clorox Co. (The)............... 3,480 $ 127,890
Colgate-Palmolive Co. ......... 8,546 488,190
Fort James Corp. .............. 3,271 78,300
Kimberly-Clark Corp. .......... 8,203 476,287
Procter & Gamble Co. (The)..... 19,359 1,154,280
------------
2,324,947
------------
HOUSEWARES (0.0%) (b)
Fortune Brands, Inc. .......... 2,423 60,575
Libbey Inc. ................... 1,041 31,751
National Presto Industries,
Inc. ......................... 477 16,457
Newell Rubbermaid Inc. ........ 4,215 106,165
Royal Appliance Manufacturing
Co. (a)....................... 1,122 5,750
Salton Inc. (a)................ 731 31,387
Tupperware Corp. .............. 837 15,798
Windmere-Durable Holdings, Inc.
(a)........................... 1,468 23,580
------------
291,463
------------
INDEPENDENT POWER PRODUCER (0.0%) (b)
Calpine Corp. (a).............. 3,371 308,446
------------
INSURANCE--LIFE (0.1%)
Conseco, Inc. ................. 4,765 25,910
Delphi Financial Group, Inc.
Class A (a)................... 1,343 38,695
Jefferson-Pilot Corp. ......... 1,565 104,170
Lincoln National Corp. ........ 2,963 103,149
Protective Life Corp. ......... 3,448 82,105
Reliastar Financial Corp. ..... 4,745 204,332
Torchmark Corp. ............... 1,920 48,120
UNUMProvident Corp. ........... 3,519 59,823
------------
666,304
------------
INSURANCE--MULTI-LINE (0.6%)
Allamerica Financial Corp. .... 2,900 156,962
American Financial Group,
Inc. ......................... 3,122 79,416
American International Group,
Inc. ......................... 22,793 2,500,107
CIGNA Corp. ................... 2,441 194,670
Hartford Financial Services
Group, Inc. (The)............. 3,378 176,289
Horace Mann Educators Corp. ... 2,193 31,936
Old Republic International
Corp. ........................ 6,748 96,159
Unitrin Inc. .................. 3,796 128,115
------------
3,363,654
------------
INSURANCE--PROPERTY & CASUALTY (0.3%)
Allstate Corp. (The)........... 11,936 281,988
Chubb Corp. (The).............. 2,597 165,234
Cincinnati Financial Corp. .... 2,429 97,919
Enhance Financial Services
Group Inc. ................... 2,472 25,029
Everest Re Group Ltd. ......... 2,510 73,418
Fidelity National Financial
Inc. ......................... 4,363 64,354
First American Financial
Corp. ........................ 4,238 65,424
Fremont General Corp. ......... 4,550 26,447
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
INSURANCE--PROPERTY & CASUALTY (CONTINUED)
HSB Group, Inc. ............... 1,556 $ 45,124
Loews Corp. ................... 1,618 89,192
MGIC Investment Corp........... 1,672 79,943
Ohio Casualty Corp. ........... 3,212 53,399
Progressive Corp. (The)........ 1,120 73,290
Radian Group Inc. ............. 2,414 122,963
RLI Corp. ..................... 645 20,721
SAFECO Corp. .................. 2,127 47,060
SCPIE Holdings Inc. ........... 784 23,177
Selective Insurance Group
Inc. ......................... 1,785 33,803
St. Paul Cos., Inc. (The)...... 3,328 118,560
Trenwick Group Inc. ........... 1,207 17,049
Zenith National Insurance
Corp. ........................ 1,117 27,367
------------
1,551,461
------------
INSURANCE BROKERS (0.1%)
Aon Corp. ..................... 3,777 102,215
E.W. Blanch Holdings, Inc. .... 854 19,002
Gallagher (Arthur J.) & Co. ... 2,387 88,916
Hilb, Rogal & Hamilton Co...... 852 24,122
Marsh & McLennan Cos., Inc. ... 3,915 385,872
------------
620,127
------------
INVESTMENT BANK/BROKERAGE (0.4%)
Bear Stearns Cos., Inc.
(The)......................... 1,817 77,904
Dain Rauscher Corp. ........... 811 50,231
E*Trade Group, Inc. (a)........ 15,455 332,283
Edwards (A.G.), Inc. .......... 4,766 179,321
Jefferies Group, Inc. ......... 1,555 34,307
Legg Mason, Inc. .............. 3,080 116,463
Lehman Brothers Holdings
Inc. ......................... 1,774 145,579
Merrill Lynch & Co., Inc. ..... 5,474 558,006
Morgan Keegan, Inc. ........... 1,888 30,090
National Discount Brokers
Group, Inc. (a)............... 1,104 32,223
Paine Webber Group Inc. ....... 2,162 94,858
Raymond James Financial,
Inc. ......................... 2,986 60,093
Schwab (Charles) Corp. (The)... 12,090 538,005
------------
2,249,363
------------
INVESTMENT MANAGEMENT (0.0%) (b)
Eaton Vance Corp. ............. 2,291 96,938
Investors Financial Services
Corp. ........................ 947 77,299
------------
174,237
------------
IRON & STEEL (0.1%)
AK Steel Holding Corp. ........ 5,934 65,645
Allegheny Technologies Inc. ... 1,476 35,701
Bethlehem Steel Corp. (a)...... 1,900 10,212
Birmingham Steel Corp. (a)..... 1,974 8,389
Castle (A.M.) & Co. ........... 913 11,184
Cleveland-Cliffs Inc. ......... 591 14,516
Commercial Metals Co. ......... 936 27,495
Imco Recycling Inc. ........... 1,075 11,086
Nucor Corp. ................... 1,344 57,792
Quanex Corp. .................. 927 15,180
Steel Dynamics, Inc. (a)....... 3,115 35,433
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
53
<PAGE> 56
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
IRON & STEEL (CONTINUED)
Steel Technologies Inc. ....... 710 $ 5,724
UCAR International Inc. (a).... 2,410 31,782
USX-U.S. Steel Group........... 1,349 33,809
WHX Corp. (a).................. 935 6,487
Worthington Industries,
Inc. ......................... 1,396 17,276
------------
387,711
------------
LEISURE TIME (0.2%)
Anchor Gaming (a).............. 779 31,355
Arctic Cat, Inc. .............. 1,625 16,352
Aztar Corp. (a)................ 2,839 33,890
Brunswick Corp. ............... 1,314 25,212
Callaway Golf Co. ............. 4,067 67,614
Coachmen Industries, Inc. ..... 1,021 15,762
Gtech Holdings Corp. (a)....... 1,860 38,595
Harley-Davidson, Inc. ......... 4,546 180,988
Huffy Corp. (a)................ 660 2,805
International Game Technology
(a)........................... 4,011 97,768
International Speedway Corp.
Class A....................... 2,840 122,120
Jakks Pacific, Inc. (a)........ 1,227 22,546
K2 Inc. (a).................... 1,163 8,286
Mandalay Resort Group (a)...... 4,848 91,506
Midway Games Inc. (a).......... 2,468 16,350
Mirage Resorts, Inc. (a)....... 2,934 59,780
Monaco Coach Corp. (a)......... 1,225 20,059
Park Place Entertainment Corp.
(a)........................... 16,298 208,818
Pinnacle Entertainment Inc.
(a)........................... 1,696 34,026
Polaris Industries Inc. ....... 1,585 48,541
Premier Parks Inc. (a)......... 4,183 90,196
SCP Pool Corp. (a)............. 732 26,947
Sturm Ruger & Co., Inc. ....... 1,748 17,480
Thor Industries Inc. .......... 789 21,254
Winnebago Industries, Inc. .... 1,416 24,072
------------
1,322,322
------------
MACHINE TOOLS (0.0%) (b)
Milacron Inc. ................. 589 10,749
------------
MACHINERY--DIVERSIFIED (0.1%)
Applied Power Inc. Class A..... 2,538 72,650
Briggs & Stratton Corp. ....... 308 11,820
Caterpillar Inc. .............. 5,144 202,866
Deere & Co. ................... 3,408 137,598
Gardner Denver Inc. (a)........ 975 17,002
Ingersoll-Rand Co. ............ 2,407 112,979
Manitowoc Co. Inc. ............ 1,688 56,020
NACCO Industries, Inc. Class
A............................. 100 4,487
Thermo Electron Corp. (a)...... 2,355 45,628
Timken Co. (The)............... 885 16,373
------------
677,423
------------
MANUFACTURING--AUTOMATED TRANSACTION
SYSTEMS (0.0%) (b)
Diebold, Inc. ................. 3,686 106,433
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
MANUFACTURING--DIVERSIFIED (0.6%)
Amcast Industrial Corp. ....... 582 $ 5,056
Amcol International Corp. ..... 1,741 28,509
American Standard Cos. Inc.
(a)........................... 3,781 155,021
Ametek, Inc. .................. 1,720 35,368
Barnes Group Inc. ............. 1,235 20,918
Carlisle Cos, Inc. ............ 1,611 66,353
Clarcor Inc. .................. 1,558 28,044
Crane Co. ..................... 868 23,327
Cuno Inc. (a).................. 1,060 28,752
Danaher Corp. ................. 2,143 122,419
Dover Corp. ................... 3,031 154,013
Esterline Technologies Corp.
(a)........................... 1,127 13,665
Gencorp Inc. .................. 2,715 27,320
Graco Inc. .................... 1,326 44,918
Griffon Corp. (a).............. 1,938 13,081
Harsco Corp. .................. 2,146 63,709
Honeywell International
Inc. ......................... 11,683 654,248
Idex Corp. .................... 1,925 60,156
Illinois Tool Works Inc. ...... 4,426 283,541
Johnson Controls, Inc. ........ 1,230 77,874
Kaman Corp. ................... 1,512 16,065
Lawson Products, Inc. ......... 672 16,212
Mark IV Industries, Inc. ...... 2,368 50,172
Millipore Corp. ............... 663 47,529
Myers Industries, Inc. ........ 1,299 18,186
Pall Corp. .................... 1,874 41,814
Parker-Hannifin Corp. ......... 1,635 76,027
Pentair, Inc. ................. 2,575 98,494
Scott Technologies, Inc. (a)... 1,161 22,639
Sealed Air Corp. (a)........... 1,228 68,308
Standex International Corp. ... 829 13,627
Thomas Industries Inc. ........ 1,028 20,689
Tredegar Corp. ................ 2,421 62,492
Tyco International Ltd. ....... 24,882 1,143,017
Valmont Industries, Inc. ...... 1,525 30,309
------------
3,631,872
------------
MANUFACTURING--SPECIALIZED
INDUSTRIALS (0.3%)
Agco Corp. .................... 3,183 37,798
Albany International Corp.
Class A....................... 1,626 24,695
Aptargroup, Inc. .............. 2,368 67,488
Astec Industries Inc. (a)...... 1,242 31,205
BMC Industries, Inc. .......... 1,778 8,890
Brady Corp. Class A............ 1,474 43,299
Cognex Corp. (a)............... 2,692 153,108
CTS Corp. ..................... 1,788 112,756
Dionex Corp. (a)............... 1,434 52,162
Donaldson Co., Inc. ........... 2,461 57,218
Federal Signal Corp. .......... 2,464 50,050
Flow International Corp. (a)... 957 10,766
Flowserve Corp. ............... 1,995 28,179
Furniture Brands International,
Inc. (a)...................... 2,639 49,316
Hillenbrand Industries,
Inc. ......................... 3,368 101,461
Imation Corp. (a).............. 1,949 54,694
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
54
<PAGE> 57
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
MANUFACTURING--SPECIALIZED
INDUSTRIALS (CONTINUED)
Insituform Technologies, Inc.
Class A (a).................... 1,632 $ 54,774
Insteel Industries, Inc. ...... 550 3,197
Intermagnetics General Corp.
(a)........................... 841 10,250
Ionics, Inc. (a)............... 1,051 24,698
Jabil Circuit, Inc. (a)........ 9,287 380,187
JLG Industries, Inc. .......... 2,883 27,388
Kaydon Corp. .................. 1,646 38,475
Kennametal Inc. ............... 1,619 46,546
Lindsay Manufacturing Co. ..... 806 14,407
Lydall, Inc. (a)............... 1,019 9,044
NCH Corp. ..................... 289 12,499
Nordson Corp. ................. 880 39,325
Paxar Corp. (a)................ 3,034 30,909
Regal-Beloit Corp. ............ 1,362 24,601
Reliance Steel & Aluminum
Co. .......................... 1,805 41,515
Robbins & Myers Inc. .......... 710 17,306
Roper Industries, Inc. ........ 1,967 61,960
Specialty Equipment Cos., Inc.
(a)........................... 1,246 25,699
SPS Technologies Inc. (a)...... 818 25,665
Stewart & Stevenson Services,
Inc. ......................... 1,496 18,046
Tecumseh Products Co. Class A.. 1,067 49,549
Teleflex Inc. ................. 2,030 70,162
Trinity Industries, Inc. ...... 2,098 46,681
Valence Technology, Inc. (a)... 2,236 34,518
Watts Industries, Inc. ........ 1,720 23,005
York International Corp. ...... 2,083 50,252
------------
2,063,743
------------
METALS--MINING (0.0%) (b)
Freeport-McMoRan Copper & Gold
Inc. Class B (a).............. 2,469 23,764
Inco Ltd. (a).................. 2,866 44,781
Phelps Dodge Corp. ............ 1,129 52,216
------------
120,761
------------
METALS--PROCESS & FABRICATION (0.0%) (b)
Brush Wellman, Inc. ........... 1,061 19,628
Mueller Industries, Inc. (a)... 2,272 74,834
RTI International Metals, Inc.
(a)........................... 1,354 14,302
Wolverine Tube, Inc. (a)....... 827 12,405
------------
121,169
------------
METALS--SPECIALTY (0.0%) (b)
Carpenter Technology Corp. .... 1,174 23,553
Maxxam Inc. (a)................ 374 10,098
Ryerson Tull Inc. ............. 1,324 16,385
------------
50,036
------------
MISCELLANEOUS (0.4%)
Aes Corp. (The) (a)............ 3,077 276,738
American Greetings Corp. Class
A............................. 1,083 19,629
Archer-Daniels-Midland Co. .... 9,169 91,117
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
MISCELLANEOUS (CONTINUED)
Corning Inc. .................. 4,072 $ 804,220
Jostens, Inc. ................. 589 14,541
Minnesota Mining &
Manufacturing Co. ............ 5,858 506,717
Sensormatic Electronics Corp.
(a)........................... 4,102 68,452
Sotheby's Holdings, Inc. Class
A............................. 3,143 52,056
Symbol Technologies, Inc. ..... 7,110 396,382
TRW, Inc. ..................... 1,798 105,183
------------
2,335,035
------------
NATURAL GAS DISTRIBUTORS & PIPELINES (0.5%)
AGL Resources Inc. ............ 3,045 53,287
Atmos Energy Corp. ............ 2,048 32,512
Cascade Natural Gas Corp. ..... 718 11,578
Coastal Corp. (The)............ 3,167 158,944
Columbia Energy Group.......... 1,176 73,794
Dynegy Inc. ................... 7,462 488,295
Eastern Enterprises............ 366 22,280
El Paso Energy Corp. .......... 3,404 144,670
Energen Corp. ................. 1,958 35,856
Enron Corp. ................... 10,528 733,670
KeySpan Corp. ................. 7,156 210,207
Kinder Morgan Inc. ............ 6,017 182,390
Laclede Gas Co. ............... 1,226 24,060
MCN Energy Group Inc. ......... 4,579 114,189
National Fuel Gas Co. ......... 2,090 99,144
New Jersey Resources Corp. .... 1,155 46,489
NICOR Inc. .................... 695 23,543
Northwest Natural Gas Co. ..... 1,627 35,794
ONEOK, Inc. ................... 475 11,994
People's Energy Corp. ......... 512 15,904
Piedmont Natural Gas Co. ...... 2,033 57,432
Questar Corp. ................. 4,407 82,907
Sempra Energy.................. 2,979 55,298
Southern Union Co. (a)......... 3,115 53,539
Southwest Gas Corp. ........... 2,005 38,220
Southwestern Energy Co. ....... 1,620 13,770
Vectren Corp. (a).............. 3,277 65,950
Washington Gas Light Co. ...... 2,484 63,653
Williams Cos., Inc. (The)...... 6,358 237,233
------------
3,186,602
------------
OFFICE EQUIPMENT & SUPPLIES (0.1%)
Hon Industries Inc. ........... 3,227 80,473
Miller (Herman), Inc. ......... 4,226 115,687
Nashua Corp. (a)............... 383 3,064
New England Business Service,
Inc. ......................... 879 14,504
Pitney Bowes Inc. ............. 4,005 163,704
Reynolds & Reynolds Class A.... 4,078 96,852
Standard Register Co. ......... 1,489 19,450
United Stationers Inc. (a)..... 2,208 73,692
Wallace Computer Services,
Inc........................... 2,239 24,489
Xerox Corp. ................... 9,732 257,290
------------
849,205
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
55
<PAGE> 58
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
OIL & GAS DRILLING (0.4%)
Antec Corp. (a)................ 2,012 $ 108,145
BJ Services Co. (a)............ 4,078 286,479
Ensco International Inc. ...... 7,340 243,596
Global Marine Inc. (a)......... 9,324 223,776
Grant Prideco, Inc. (a)........ 5,778 111,227
Hanover Compressor Co. (a)..... 1,536 89,472
Helmerich & Payne, Inc......... 2,654 83,103
Nabors Industries, Inc. (a).... 7,419 292,587
Noble Drilling Corp. (a)....... 7,027 280,641
Rowan Cos., Inc. (a)........... 1,367 38,191
Smith International Inc. (a)... 2,615 198,740
Tidewater, Inc. ............... 2,974 88,476
Varco International, Inc.
(a)........................... 3,489 43,612
Weatherford International, Inc.
(a)........................... 5,778 234,731
------------
2,322,776
------------
OIL & GAS--EXPLORATION & PRODUCTION (0.3%)
Anadarko Petroleum Corp. ...... 1,811 78,665
Apache Corp. .................. 1,603 77,645
Barrett Resources Corp. (a).... 2,116 67,183
Burlington Resources Inc. ..... 3,195 125,604
Cabot Oil & Gas Corp. Class A.. 1,629 30,238
Cross Timbers Oil Co. ......... 3,169 45,753
Devon Energy Corp. ............ 4,586 220,988
HS Resources, Inc. (a)......... 1,221 29,533
Louis Dreyfus Natural Gas Corp.
(a)........................... 2,615 73,220
Murphy Oil Corp. .............. 2,404 141,836
Newfield Exploration Co. (a)... 2,703 109,809
Noble Affiliates, Inc. ........ 3,050 109,991
Ocean Energy Inc. (a).......... 8,921 115,415
Pennzoil--Quaker State Co. .... 4,168 45,587
Pioneer Natural Resources
Co. .......................... 5,364 55,316
Plains Resources, Inc. (a)..... 1,164 16,514
Pogo Producing Co. ............ 2,612 66,933
Remington Oil & Gas Corp. (a).. 1,382 6,046
Santa Fe Snyder Corp. (a)...... 9,859 90,580
St. Mary Land & Exploration
Co. .......................... 723 24,401
Stone Energy Corp. (a)......... 1,191 56,275
Ultramar Diamond Shamrock
Corp. ........................ 4,633 114,667
Union Pacific Resources Group,
Inc. ......................... 3,746 71,876
Unocal Corp. .................. 3,528 113,999
Valero Energy Corp. ........... 2,981 86,449
Vintage Petroleum, Inc. ....... 4,054 80,573
------------
2,055,096
------------
OIL & WELL--EQUIPMENT & SERVICES (0.3%)
Atwood Oceanics, Inc. (a)...... 889 53,896
Baker Hughes Inc. ............. 4,791 152,414
Cal Dive International, Inc.
(a)........................... 1,006 50,048
Dril-Quip, Inc. (a)............ 1,120 45,500
Friede Goldman Halter, Inc.
(a)........................... 2,591 16,032
Halliburton Co. ............... 6,462 285,540
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
OIL & WELL--EQUIPMENT & SERVICES (CONTINUED)
Input/Output, Inc. (a)......... 3,294 $ 24,293
McDermott International,
Inc. ......................... 824 6,695
Oceaneering International Inc.
(a)........................... 1,478 25,496
Offshore Logistics, Inc. (a)... 1,371 16,623
Pride International, Inc.
(a)........................... 3,925 88,803
Schlumberger Ltd. ............. 8,095 619,773
SEACOR SMIT Inc. (a)........... 733 44,896
Seitel, Inc. (a)............... 1,578 9,863
Transocean Sedco Forex Inc. ... 3,094 145,418
Tuboscope Inc. (a)............. 2,899 50,370
Veritas DGC Inc. (a)........... 1,678 40,272
------------
1,675,932
------------
OIL--INTEGRATED DOMESTIC (0.2%)
Amerada Hess Corp. ............ 1,365 86,848
Ashland Inc. .................. 1,059 36,138
Conoco Inc. Class B............ 9,270 230,591
Kerr-McGee Corp. .............. 1,448 74,934
Occidental Petroleum Corp. .... 5,136 110,103
Phillips Petroleum Co. ........ 3,760 178,365
Sunoco Inc. ................... 1,400 42,438
Tosco Corp. ................... 2,200 70,538
USX-Marathon Group............. 4,524 105,465
------------
935,420
------------
OIL--INTEGRATED INTERNATIONAL (1.2%)
Chevron Corp. ................. 9,609 817,966
Exxon Mobil Corp. ............. 50,875 3,952,352
Royal Dutch Petroleum Co. ADR
(e)........................... 31,514 1,808,116
Texaco Inc. ................... 8,173 404,564
------------
6,982,998
------------
PAPER & FOREST PRODUCTS (0.3%)
Boise Cascade Corp. ........... 808 26,311
Bowater Inc. .................. 2,762 151,910
Buckeye Technologies Inc.
(a)........................... 2,274 43,490
Caraustar Industries, Inc. .... 1,656 25,150
Champion International Corp. .. 1,392 91,524
Chesapeake Corp. .............. 936 29,250
Consolidated Papers, Inc. ..... 4,852 183,770
Deltic Timber Corp. ........... 805 17,710
Georgia-Pacific Group.......... 2,543 93,455
Georgia-Pacific Group (Timber
Group)........................ 4,429 102,697
International Paper Co. ....... 6,022 221,309
Longview Fibre Co. ............ 2,763 35,228
Louisiana-Pacific Corp. ....... 1,554 20,785
Mead Corp. (The)............... 1,538 53,542
P.H. Glatfelter Co. ........... 2,257 24,263
Pope & Talbot, Inc. ........... 973 20,615
Potlach Corp. ................. 449 17,707
Rayonier Inc. ................. 1,468 68,904
Republic Group Inc. ........... 768 8,784
Sonoco Products Co. ........... 5,451 113,790
Wausau-Mosinee Paper Corp. .... 2,749 33,332
Westvaco Corp. ................ 1,429 44,120
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
56
<PAGE> 59
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS (CONTINUED)
Weyerhaeuser Co. .............. 3,496 $ 186,817
Willamette Industries, Inc. ... 1,606 61,329
------------
1,675,792
------------
PERSONAL LOANS (0.1%)
Capital One Financial Corp. ... 2,972 130,025
Countrywide Credit Industries,
Inc. ......................... 1,687 46,603
Household International,
Inc. ......................... 7,051 294,379
Providian Financial Corp. ..... 2,108 185,636
------------
656,643
------------
PHOTOGRAPHY/IMAGING (0.1%)
Eastman Kodak Co. ............. 4,686 262,123
IKON Office Solutions, Inc. ... 2,188 12,854
Lason Inc. (a)................. 1,228 5,526
Pinnacle Systems Inc. (a)...... 3,151 75,624
Polaroid Corp. ................ 696 14,051
Zebra Technologies Corp. Class
A (a)......................... 2,036 116,052
------------
486,230
------------
POLLUTION CONTROL (0.0%) (b)
Allied Waste Industries, Inc.
(a)........................... 2,800 17,150
Waste Management, Inc. ........ 9,033 143,399
------------
160,549
------------
PUBLISHING (0.1%)
Harcourt General Inc. ......... 977 36,515
Houghton Mifflin Co. .......... 1,662 69,077
McGraw-Hill Cos., Inc. (The)... 2,911 152,828
Meredith Corp. ................ 762 21,193
Reader's Digest Association,
Inc. (The) Class A............ 5,701 182,432
Scholastic Corp. (a)........... 890 41,552
Thomas Nelson, Inc. ........... 924 6,468
------------
510,065
------------
PUBLISHING--NEWSPAPERS (0.2%)
A.H. Belo Corp. ............... 6,332 105,665
Dow Jones & Co., Inc. ......... 1,371 88,944
Gannett Co., Inc. ............. 4,092 261,376
Knight-Ridder, Inc. ........... 1,189 58,335
Lee Enterprises, Inc. ......... 2,363 53,611
Media General, Inc. Class A.... 1,422 69,945
New York Times Co. (The) Class
A............................. 2,638 108,653
Tribune Co. ................... 3,550 138,006
Washington Post Co. ........... 501 244,488
------------
1,129,023
------------
RAILROADS (0.1%)
Burlington Northern Santa Fe
Corp. ........................ 6,979 168,368
CSX Corp. ..................... 3,183 66,644
Kansas City Southern
Industries, Inc. ............. 1,645 118,234
Norfolk Southern Corp. ........ 5,648 99,546
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
RAILROADS (CONTINUED)
RailAmerica, Inc. (a).......... 1 $ 6
Union Pacific Corp. ........... 3,671 154,641
Wisconsin Central
Transportation Corp. (a)...... 2,740 39,901
------------
647,340
------------
RESTAURANTS (0.3%)
Applebee's International,
Inc. ......................... 1,769 64,458
Brinker International Inc.
(a)........................... 3,483 111,021
Buffets, Inc. (a).............. 2,248 22,059
CBRL Group, Inc. .............. 3,134 43,484
CEC Entertainment Inc. (a)..... 1,766 52,980
Cheesecake Factory (The) (a)... 1,305 53,423
CKE Restaurants Inc. .......... 3,281 12,099
Consolidated Products, Inc.
(a)........................... 1,908 17,411
Darden Restaurants, Inc. ...... 1,953 36,008
IHOP Corp. (a)................. 1,307 21,239
Jack In The Box Inc. (a)....... 2,487 60,932
Landry's Seafood Restaurants,
Inc. ......................... 1,613 13,912
Lone Star Steakhouse & Saloon,
Inc. (a)...................... 1,769 20,896
Luby's, Inc. .................. 1,456 13,104
McDonald's Corp. .............. 19,907 758,954
Outback Steakhouse, Inc. (a)... 4,009 131,295
Panera Bread Co. Class A (a)... 790 6,369
Papa John's International Inc.
(a)........................... 1,627 44,743
Ruby Tuesday, Inc. ............ 2,014 42,168
Ryan's Family Steak Houses Inc.
(a)........................... 2,350 22,986
Sonic Corp. (a)................ 1,187 33,013
Starbucks Corp. (a)............ 9,812 296,660
Taco Cabana, Inc. Class A
(a)........................... 851 5,159
TCBY Enterprises Inc. ......... 1,213 7,202
Tricon Global Restaurants, Inc.
(a)........................... 2,280 77,805
Wendy's International, Inc. ... 1,942 43,452
------------
2,012,832
------------
RETAIL--APPAREL (0.2%)
AnnTaylor Stores Corp. (a)..... 2,049 42,389
Cato Corp. (The) Class A....... 1,719 18,157
Gap, Inc. (The)................ 12,435 456,986
Goody's Family Clothing, Inc.
(a)........................... 2,152 13,988
Gymboree Corp. (The) (a)....... 1,582 5,735
Limited, Inc. (The)............ 3,191 144,193
Men's Wearhouse, Inc. (The)
(a)........................... 2,723 58,375
Pacific Sunwear of California
Inc. (a)...................... 2,036 69,351
TJX Cos., Inc. (The)........... 4,764 91,409
Wet Seal, Inc. (The) Class A
(a)........................... 897 15,922
------------
916,505
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
57
<PAGE> 60
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
RETAIL--BUILDING SUPPLIES (0.0%) (b)
Building Materials Holding
Corp. (a)..................... 823 $ 8,230
Hughes Supply, Inc. ........... 1,528 23,302
------------
31,532
------------
RETAIL--COMPUTERS & ELECTRONICS (0.0%) (b)
MicroAge, Inc. (a) (h)......... 1,087 11
------------
RETAIL--DEPARTMENT (0.1%)
Dillard's Inc. Class A......... 1,633 22,760
Federated Department Stores,
Inc. (a)...................... 3,080 104,720
Gottschalks Inc. (a)........... 817 4,851
Kohl's Corp. (a)............... 4,794 230,112
May Department Stores Co.
(The)......................... 4,950 136,125
Nordstrom, Inc. ............... 2,113 58,768
Penney (J.C.) Co., Inc. ....... 3,873 53,496
------------
610,832
------------
RETAIL--DISCOUNTERS (0.1%)
Ames Department Stores, Inc.
(a)........................... 1,893 33,956
Dollar Tree Stores, Inc. (a)... 3,316 191,914
Dress Barn, Inc. (The) (a)..... 1,184 23,236
Family Dollar Stores, Inc. .... 9,239 176,118
Ross Stores, Inc. ............. 4,733 98,210
Shopko Stores, Inc. (a)........ 1,975 35,303
Stein Mart, Inc. (a)........... 2,891 25,974
99 Cents Only Stores (a)....... 2,170 81,646
------------
666,357
------------
RETAIL--DRUGS (0.1%)
Longs Drug Stores Corp. ....... 612 14,229
Rite Aid Corp. ................ 3,845 19,225
Walgreen Co. .................. 14,679 412,847
------------
446,301
------------
RETAIL--FOOD (0.2%)
Albertson's, Inc. ............. 6,150 200,259
Great Atlantic & Pacific Tea
Co., Inc. (The)............... 601 11,006
Hannaford Brothers Co. ........ 2,259 163,495
Kroger Co. (The) (a)........... 12,178 226,054
Ruddick Corp. ................. 2,478 28,342
Safeway Inc. (a)............... 7,537 332,570
Whole Foods Market Inc. (a).... 1,688 71,846
Winn-Dixie Stores, Inc. ....... 2,166 35,875
------------
1,069,447
------------
RETAIL--GENERAL MERCHANDISE (0.7%)
Kmart Corp. (a)................ 7,295 59,272
Sears, Roebuck & Co. .......... 5,650 206,931
Target Corp. .................. 6,421 427,398
Wal-Mart Stores, Inc. ......... 65,587 3,631,880
------------
4,325,481
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
RETAIL--HOME SHOPPING (0.0%) (b)
Damark International, Inc.
Class A (a)................... 358 $ 9,308
Insight Enterprises Inc. (a)... 1,680 70,245
Lands' End, Inc. (a)........... 1,612 68,208
Lillian Vernon Corp. .......... 583 5,538
------------
153,299
------------
RETAIL--SPECIALTY (1.0%)
Abercrombie & Fitch Co. Class A
(a)........................... 5,453 59,983
American Eagle Outfitters, Inc.
(a)........................... 2,494 42,398
AutoZone, Inc. (a)............. 2,183 50,073
Barnes & Noble, Inc. (a)....... 3,713 68,690
Bed Bath & Beyond Inc. (a)..... 2,000 73,375
Best Buy Co., Inc. (a)......... 3,000 242,250
BJ's Wholesale Club Inc. (a)... 3,930 139,269
Bombay Co., Inc. (The) (a)..... 2,358 8,548
Books-A-Million Inc. (a)....... 1,174 4,769
Borders Group Inc. (a)......... 4,134 65,627
Casey's General Stores,
Inc. ......................... 3,426 40,041
CDW Computer Centers, Inc.
(a)........................... 2,310 240,240
Circuit City Stores-Circuit
City Group.................... 2,894 170,203
Claire's Stores, Inc. ......... 2,738 50,482
Consolidated Stores Corp.
(a)........................... 1,627 20,236
Cost Plus, Inc. (a)............ 1,331 40,679
Costco Wholesale Corp. (a)..... 6,492 350,974
CVS Corp. ..................... 5,718 248,733
Discount Auto Parts, Inc.
(a)........................... 1,085 11,596
Dollar General Corp. .......... 3,926 89,807
Fastenal Co. .................. 2,028 118,511
Footstar, Inc. (a)............. 1,354 50,352
Group 1 Automotive Inc. (a).... 1,380 16,387
Hancock Fabrics, Inc. ......... 1,234 4,859
Home Depot, Inc. (The)......... 33,888 1,899,846
J. Baker, Inc. ................ 914 5,941
Jo-Ann Stores Inc. Class A
(a)........................... 1,158 10,784
Linens 'N Things, Inc. (a)..... 2,563 79,133
Lowe's Cos., Inc. ............. 5,583 276,358
Michaels Stores Inc. (a)....... 2,008 79,190
Neiman Marcus Group Inc. Class
A (a)......................... 2,629 67,697
Office Depot, Inc. (a)......... 4,835 51,070
Officemax Inc. (a)............. 6,106 34,346
O'Reilly Automotive, Inc.
(a)........................... 3,292 44,442
Payless ShoeSource, Inc. (a)... 1,216 67,032
Pep Boys-Manny, Moe & Jack
(The)......................... 3,453 21,797
Pier 1 Imports, Inc. .......... 6,479 73,699
Saks Holdings Inc. (a)......... 7,688 87,932
Sports Authority (The) Inc.
(a)........................... 2,080 5,850
Staples Inc. (a)............... 6,976 132,980
Tandy Corp. ................... 2,956 168,492
Tech Data Corp. (a)............ 2,787 116,880
Tiffany & Co. ................. 3,868 281,155
Toys "R" Us, Inc. (a).......... 3,607 55,007
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
58
<PAGE> 61
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
RETAIL--SPECIALTY (CONTINUED)
Williams-Sonoma, Inc. (a)...... 3,016 $ 104,429
Zale Corp. (a)................. 2,279 94,009
------------
5,966,151
------------
SHIPPING (0.0%) (b)
Alexander & Baldwin, Inc. ..... 2,305 48,405
Kirby Corp. (a)................ 1,594 32,976
Newport News Shipbuilding,
Inc. ......................... 1,763 58,840
Overseas Shipbuilding Group,
Inc. ......................... 1,800 47,138
------------
187,359
------------
SHOES (0.1%)
Brown Shoe Co. Inc. ........... 1,186 12,157
Justin Industries, Inc. ....... 1,655 30,204
K-Swiss Inc. Class A........... 698 10,339
NIKE Inc. Class B.............. 4,040 175,487
Reebok International Ltd.
(a)........................... 825 14,025
Stride Rite Corp. ............. 2,900 24,469
Timberland Co. Class A (a)..... 1,358 94,211
Wolverine World Wide, Inc. .... 2,683 32,196
------------
393,088
------------
SPECIALIZED SERVICES (0.2%)
Block (H&R), Inc. ............. 1,455 60,837
Cendant Corp. (a).............. 10,739 165,783
Dun & Bradstreet Corp. (The)... 2,467 74,318
Ecolab Inc. ................... 1,871 73,086
IMS Health Inc. ............... 4,711 80,381
Interpublic Group of Cos., Inc.
(The)......................... 4,772 195,634
National Service Industries,
Inc. ......................... 569 12,234
Omnicom Group Inc. ............ 2,659 242,135
Young & Rubicam Inc. .......... 1,000 55,688
------------
960,096
------------
SPECIALTY PRINTING (0.0%) (b)
Bowne & Co., Inc. ............. 2,398 27,577
Consolidated Graphics, Inc.
(a)........................... 925 10,926
Deluxe Corp. .................. 1,116 28,109
Donnelley (R.R.) & Sons Co. ... 1,899 40,354
Harland (John H.) Co. ......... 1,965 30,212
------------
137,178
------------
TELECOMMUNICATIONS--LONG DISTANCE (1.1%)
AT&T Corp. .................... 46,869 2,188,196
General Communication, Inc.
Class A (a)................... 3,289 16,445
Global Crossing Ltd. (a)....... 11,439 360,328
MCI WorldCom, Inc. (a)......... 41,817 1,900,060
Nextel Communications, Inc.
Class A (a)................... 5,385 589,321
Sprint Corp. (FON Group)....... 12,759 784,679
Sprint Corp. (PCS Group) (a)... 12,678 697,290
Talk.Com, Inc. (a)............. 4,201 40,960
------------
6,577,279
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
TELEPHONE (1.2%)
ALLTEL Corp. .................. 4,591 $ 305,875
Bell Atlantic Corp. ........... 22,662 1,342,723
BellSouth Corp. ............... 27,723 1,349,764
Broadwing Inc. (a)............. 11,561 327,321
CenturyTel Inc. ............... 2,078 50,911
GTE Corp. ..................... 14,341 971,603
SBC Communications Inc. ....... 50,230 2,200,702
Telephone & Data Systems,
Inc. ......................... 3,301 336,702
US West Inc. .................. 7,474 532,055
------------
7,417,656
------------
TEXTILES--APPAREL MANUFACTURERS (0.1%)
Ashworth, Inc. (a)............. 915 4,461
Haggar Corp. .................. 448 5,852
Hartmarx Corp. (a)............. 1,911 4,777
Jones Apparel Group Inc. (a)... 6,549 194,423
Liz Claiborne, Inc. ........... 900 41,681
Kellwood Co. .................. 1,809 30,979
Nautica Enterprises Inc. (a)... 2,250 25,313
Oshkosh B'Gosh, Inc. Class A... 834 13,448
Oxford Industries, Inc. ....... 497 8,449
Phillips-Van Heusen Corp. ..... 1,773 14,960
Quicksilver Inc. (a)........... 1,451 27,388
Russell Corp. ................. 554 10,872
Springs Industries, Inc. Class
A............................. 220 9,034
VF Corp. ...................... 1,784 50,398
Warnaco Group, Inc. (The)...... 2,974 31,599
------------
473,634
------------
TEXTILES--HOME FURNISHINGS (0.0%) (b)
Interface, Inc. ............... 3,419 12,394
Pillowtex Corp. (a)............ 930 4,882
------------
17,276
------------
TEXTILES--SPECIALTY (0.1%)
Burlington Industries, Inc.
(a)........................... 2,784 12,180
Cone Mills Corp. (a)........... 1,656 9,005
Dixie Group (The), Inc. (a).... 754 3,110
Guilford Mills, Inc. .......... 1,247 10,288
Mohawk Industries, Inc. (a).... 2,943 73,023
Shaw Industries, Inc. ......... 7,152 113,091
Unifi, Inc. (a)................ 3,160 32,193
Wellman, Inc. ................. 1,814 38,774
Westpoint Stevens Inc. ........ 2,854 53,512
------------
345,176
------------
TOBACCO (0.2%)
Philip Morris Cos. Inc. ....... 34,813 761,534
R.J. Reynolds Tobacco Holdings,
Inc. ......................... 5,861 121,616
Schweitzer-Mauduit
International, Inc. .......... 1,020 14,854
UST Inc. ...................... 2,529 37,935
------------
935,939
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
59
<PAGE> 62
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
TOYS (0.0%) (b)
Hasbro, Inc. .................. 2,977 $ 47,446
Mattel, Inc. .................. 6,183 75,742
------------
123,188
------------
TRANSPORTATION--MISCELLANEOUS (0.1%)
Arnold Industries, Inc. ....... 1,317 15,392
C.H. Robinson Worldwide,
Inc. ......................... 2,201 110,050
FedEx Corp. (a)................ 4,170 157,157
Gatx Corp. .................... 2,628 93,951
Hunt (J.B.) Transportation
Services, Inc. (a)............ 1,905 31,432
Ryder System, Inc. ............ 910 20,191
Swift Transportation Co., Inc.
(a)........................... 3,439 68,995
------------
497,168
------------
TRUCKERS (0.1%)
American Freightways Corp.
(a)........................... 2,085 38,833
Arkansas Best Corp. (a)........ 1,282 16,586
Frozen Food Express Industries,
Inc. (a)...................... 1,060 3,644
Heartland Express Inc. (a)..... 1,949 32,889
Landstar System Inc. (a)....... 619 35,438
M.S. Carriers, Inc. (a)........ 799 18,976
Rollins Truck Leasing Corp. ... 3,685 36,620
U.S. Freightways Corp. ........ 1,720 80,195
Werner Enterprises, Inc. ...... 3,086 57,862
Yellow Corp. (a)............... 1,616 30,805
------------
351,848
------------
UTILITIES--WATER (0.0%) (b)
American States Water Co. ..... 582 17,533
American Water Works Co.,
Inc. ......................... 5,181 117,544
Philadelphia Suburban Corp. ... 2,661 63,864
United Water Resources Inc. ... 2,525 87,743
------------
286,684
------------
WASTE MANAGEMENT (0.0%) (b)
Tetra Technologies, Inc. (a)... 879 12,526
------------
Total Common Stocks
(Cost $177,699,418)........... 256,241,468(g)
------------
REAL ESTATE INVESTMENT TRUSTS (4.1%)
Alexandria Real Estate
Equities, Inc. ............... 2,940 94,080
AMB Property Corp. ............ 18,521 408,620
American Industrial Properties
REIT.......................... 4,472 55,900
Amli Residential Properties
Trust......................... 3,634 82,673
Apartment Investment &
Management Co. Class A........ 14,283 567,749
Archstone Communities Trust.... 29,822 644,901
Arden Realty, Inc. ............ 13,552 301,532
Associated Estates Realty
Corp. ........................ 4,622 38,420
Avalonbay Communities, Inc. ... 14,063 550,215
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
<S> <C> <C>
Bedford Property Investors,
Inc. ......................... 4,374 $ 77,092
Boston Properties Inc. ........ 14,527 506,629
Boykin Lodging Co. ............ 3,659 45,966
Bradley Real Estate, Inc. ..... 5,147 92,968
Brandywine Realty Trust........ 8,113 140,963
BRE Properties, Inc. Class A... 9,558 267,027
Burnham Pacific Properties,
Inc. ......................... 6,903 50,910
Cabot Industrial Trust......... 8,690 167,283
Camden Property Trust.......... 8,603 244,110
Capital Automotive REIT........ 4,622 64,419
Captec Net Lease Realty,
Inc. ......................... 2,034 17,798
CarrAmerica Realty Corp. ...... 14,295 339,506
CBL & Associates Properties,
Inc. ......................... 5,290 123,984
Center Trust, Inc. ............ 5,586 40,499
CenterPoint Properties
Corp. ........................ 4,411 158,245
Chateau Communities, Inc. ..... 6,073 157,898
Chelsea GCA Realty, Inc. ...... 3,397 110,827
Colonial Properties Trust...... 4,859 121,171
Commercial Net Lease Realty.... 6,505 71,555
Cornerstone Properties,
Inc. ......................... 27,725 505,981
Cornerstone Realty Income
Trust, Inc. .................. 8,282 84,373
Corporate Office Properties
Trust......................... 3,674 31,688
Correctional Properties
Trust......................... 1,525 18,109
Cousins Properties, Inc. ...... 6,879 270,001
Crescent Real Estate Equities
Co. .......................... 25,746 440,900
Crown American Realty Trust.... 5,607 31,189
Developers Diversified Realty
Corp. ........................ 12,786 194,187
Duke-Weeks Realty Corp. ....... 26,787 580,943
EastGroup Properties, Inc. .... 3,405 70,867
Entertainment Properties
Trust......................... 3,206 43,682
Equity Inns Inc. .............. 7,967 52,781
Equity Office Properties
Trust......................... 53,947 1,466,684
Equity One, Inc. .............. 2,437 22,085
Equity Residential Properties
Trust......................... 27,044 1,230,502
Essex Property Trust, Inc. .... 3,863 149,208
Federal Realty Investment
Trust......................... 8,632 183,430
FelCor Lodging Trust Inc. ..... 14,107 276,850
First Industrial Realty Trust,
Inc. ......................... 8,150 245,009
First Washington Realty Trust,
Inc. ......................... 2,025 42,145
Franchise Finance Corp. of
America....................... 11,987 284,691
Gables Residential Trust....... 5,443 130,632
General Growth Properties,
Inc. ......................... 11,060 363,598
Glenborough Realty Trust
Inc. ......................... 6,473 95,477
Glimcher Realty Trust.......... 5,086 69,932
Golf Trust of America, Inc. ... 1,655 28,549
Great Lakes REIT, Inc. ........ 3,486 52,726
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
60
<PAGE> 63
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
SHARES VALUE
-------------------------
<S> <C> <C>
Grove Property Trust........... 1,749 $ 24,049
Highwoods Properties Inc. ..... 13,199 299,452
Home Properties of New York,
Inc. ......................... 4,129 115,612
Hospitality Properties Trust... 12,076 268,691
Host Marriott Corp. (a)........ 48,993 523,613
HRPT Properties Trust.......... 28,219 215,170
Innkeepers USA Trust........... 7,418 66,762
Investors Real Estate Trust.... 4,522 35,611
IRT Property Co. .............. 7,110 59,102
Jameson Inns, Inc. ............ 2,359 17,398
JDN Realty Corp. .............. 7,242 70,157
JP Realty, Inc. ............... 3,712 66,584
Kilroy Realty Corp. ........... 5,967 143,954
Kimco Realty Corp. ............ 12,992 517,244
Koger Equity................... 5,700 99,750
Konover Property Trust,
Inc. ......................... 6,604 38,799
Kranzco Realty Trust........... 2,260 20,058
LaSalle Hotel Properties....... 3,299 49,897
Lexington Corporate Properties
Trust......................... 3,668 41,265
Liberty Property Trust......... 14,334 354,766
Macerich Co. (The)............. 7,289 169,014
Mack-Cali Realty Corp. ........ 12,508 322,081
Manufactured Home Communities,
Inc. ......................... 5,148 128,700
MeriStar Hospitality Corp. .... 10,210 201,647
Mid-America Apartment
Communities Inc............... 3,941 94,091
Mid-Atlantic Realty Trust...... 3,035 28,832
Mills Corp. ................... 5,122 92,196
Mission West Properties
Inc. ......................... 3,628 30,385
National Golf Properties,
Inc. ......................... 2,657 50,815
New Plan Excel Realty Trust.... 18,936 272,205
Pacific Gulf Properties,
Inc. ......................... 4,377 94,105
Pan Pacific Retail Properties,
Inc. ......................... 4,547 86,393
Parkway Properties, Inc. ...... 2,161 64,830
Pennsylvania Real Estate
Investment Trust.............. 2,851 49,180
Philips International Realty
Corp. ........................ 1,570 25,807
Post Properties, Inc. ......... 8,295 348,390
Prentiss Properties Trust...... 8,045 191,069
Prime Group Realty Trust....... 3,238 47,963
Prime Retail, Inc. (a)......... 9,278 15,077
Prison Realty Trust, Inc.
(a)........................... 25,326 77,561
ProLogis Trust................. 34,577 680,735
PS Business Parks, Inc. Class
A............................. 5,058 112,540
Public Storage, Inc. .......... 27,673 619,183
Ramco-Gershenson Properties
Trust......................... 1,544 22,002
Realty Income Corp. ........... 5,738 125,160
Reckson Associates Realty
Corp. ........................ 8,636 173,260
Regency Realty Corp. .......... 12,678 280,501
RFS Hotel Investors, Inc. ..... 5,346 64,820
Rouse Co. (The)................ 15,396 360,844
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------
<S> <C> <C>
Saul Centers, Inc. ............ 2,853 $ 44,043
Shurgard Storage Centers, Inc.
Class A....................... 6,208 162,572
Simon Property Group, Inc. .... 37,113 941,742
SL Green Realty Corp. ......... 5,178 133,010
Smith (Charles E.) Residential
Realty, Inc. ................. 4,227 159,305
Sovran Self Storage, Inc. ..... 2,666 54,820
Spieker Properties, Inc. ...... 13,888 615,412
Storage USA, Inc. ............. 5,999 175,471
Summit Properties Inc. ........ 6,142 122,456
Sun Communities, Inc. ......... 3,735 123,722
Tanger Factory Outlet Centers,
Inc. ......................... 1,679 36,518
Tarragon Realty Investors
Inc. ......................... 1,729 17,074
Taubman Centers, Inc. ......... 11,398 136,064
Town & Country Trust........... 3,378 58,270
United Dominion Realty Trust,
Inc. ......................... 22,034 220,340
Urban Shopping Centers, Inc. .. 3,749 120,905
U.S. Restaurant Properties,
Inc. ......................... 3,292 41,767
Vornado Realty Trust........... 18,387 634,351
Washington Real Estate
Investment Trust.............. 7,642 122,750
Weingarten Realty Investors.... 5,710 231,255
Western Properties Trust....... 3,686 41,698
Westfield America, Inc. ....... 15,691 214,771
Winston Hotels, Inc. .......... 3,597 27,652
------------
Total Real Estate Investment
Trusts (Cost $21,962,476)..... 24,802,447
------------
<CAPTION>
SHORT-TERM
INVESTMENTS (35.4%)
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
COMMERCIAL PAPER (30.9%)
Aetna Services Inc.
6.09%, due 5/12/00 (c)........ $ 2,500,000 2,494,500
6.10%, due 5/16/00 (c)........ 9,900,000 9,871,465
Allergan Inc.
6.13%, due 6/16/00 (c)........ 5,200,000 5,157,489
6.14%, due 6/13/00 (c)........ 9,125,000 9,055,020
Banque Et Caisse Epargne
6.04%, due 5/5/00 (c)......... 23,300,000 23,276,528
Banque Nationale De Paris
6.11%, due 6/16/00 (c)........ 1,000,000 991,851
Central Illinois Power & Light
Co.
6.21%, due 6/12/00 (c)........ 1,600,000 1,587,850
6.23%, due 5/15/00 - 6/19/00
(c)......................... 2,800,000 2,789,827
Consolidated Natural Gas Co.
6.10%, due 5/12/00 (c)........ 500,000 498,899
6.14%, due 6/5/00 (c)......... 2,900,000 2,881,698
6.17%, due 5/1/00 (c)......... 1,300,000 1,299,554
Den Norske Bank ASA
6.12%, due 5/24/00 (c)........ 20,800,000 20,711,645
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
61
<PAGE> 64
ASSET MANAGER FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (CONTINUED)
PRINCIPAL
AMOUNT VALUE
-------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Golden Peanut Co.
6.06%, due 5/16/00 (c)........ $ 3,200,000 $ 3,190,837
Hasbro Inc.
6.17%, due 6/20/00 (c)........ 2,500,000 2,477,708
Hitachi Credit America Corp.
6.15%, due 5/8/00 (c)......... 15,000,000 14,976,924
6.17%, due 6/2/00 - 6/9/00
(c)......................... 15,032,000 14,930,137
Motorola Inc.
6.07%, due 6/13/00 (c)........ 13,200,000 13,099,923
National Fuel Gas Co.
6.10%, due 5/3/00 (c)......... 1,600,000 1,598,915
6.12%, due 6/6/00 (c)......... 4,800,000 4,768,979
Progress Capital Holdings Inc.
6.15%, due 5/1/00 (c)......... 7,000,000 6,997,608
Standard Life Assurance Co.
6.08%, due 6/5/00 (c)......... 3,600,000 3,577,491
Standard Life Funding B.V.
6.08%, due 6/5/00 (c)......... 5,500,000 5,465,617
Toyota Credit Puerto Rico
6.09%, due 5/3/00 (c)......... 4,868,000 4,864,704
Weyerhaeuser Real Estate Co.
6.11%, due 5/1/00 (c)......... 30,000,000 29,989,822
------------
Total Commercial Paper
(Cost $186,554,991)........... 186,554,991
------------
U.S. GOVERNMENT (4.5%)
United States Treasury Bills
5.55%, due 7/13/00 (c)........ 17,600,000 17,394,624
5.68%, due 7/20/00 (c)........ 10,000,000 9,869,066
------------
Total U.S. Government
(Cost $27,263,690)............ 27,263,690
------------
Total Short-Term Investments
(Cost $213,818,681)........... 213,818,681
------------
Total Investments
(Cost $538,141,467) (i)....... 101.4% 612,758,597(j)
Liabilities in Excess of Cash
and Other Assets.............. (1.4) (8,790,043)
----------- -----------
Net Assets..................... 100.0% $603,968,554
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
FUTURES CONTRACTS (0.1%)
<S> <C> <C>
UNREALIZED
CONTRACTS APPRECIATION/
LONG (DEPRECIATION) (k)
------------------------------
CANADA (0.1%)
Standard & Poor's Toronto
Stock Exchange 60 Index
June 2000................. 161 $ 256,994
FRANCE (0.0%) (b)
Euro CAC 40 Index May
2000...................... 319 160,884
GERMANY (-0.1%)
Euro DAX Index June 2000... 36 (306,777)
HONG KONG (0.1%)
Hong Kong Hang Seng Index
May 2000.................. 123 306,348
JAPAN (0.0%) (b)
TOPIX Index
June 2000................. 157 (91,743)
UNITED STATES (0.0%) (b)
Standard & Poor's 500 Index
June 2000................. 45 470,550
United States Treasury Bond
June 2000 (30 Year)....... 73 (72,918)
United States Treasury Note
June 2000 (5 Year)........ 340 (314,838)
June 2000 (10 Year)....... 104 (94,665)
---------
Total Futures Contracts
(Settlement Value
$140,057,654) (f)(g)...... $ 313,835
=========
</TABLE>
------------
(a) Non-income producing security.
(b) Less than one tenth of a percent.
(c) Segregated or partially segregated as collateral for futures contracts.
(d) Yankee bond.
(e) ADR--American Depository Receipt.
(f) The combined market value of U.S. Government and Federal Agencies
Investments and settlement value of U.S. Treasury futures contracts
represents 20.4% of net assets.
(g) The combined market value of common stocks and settlement value of Standard
& Poor's 500 Index futures contracts represents 49.3% of net assets.
(h) Fair valued security.
(i) The cost for Federal income tax purposes is $538,276,466.
(j) At April 30, 2000, net unrealized appreciation was $74,482,131 based on
cost for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $96,255,228 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $21,773,097.
(k) Represents the difference between the value of the contracts at the time
they were opened and the value at April 30, 2000.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
62
<PAGE> 65
MAINSTAY
INSTITUTIONAL FUNDS INC.
ASSET MANAGER FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $538,141,467)............................. $612,758,597
Cash............................................. 98,177
Receivables:
Investment securities sold..................... 3,892,306
Dividends and interest......................... 2,030,318
Fund shares sold............................... 120,833
------------
Total assets............................... 618,900,231
------------
LIABILITIES:
Payable to broker for futures contracts
(identified cost $203,899)..................... 70,686
Payables:
Investment securities purchased................ 14,178,036
MainStay Management............................ 298,514
Variation margin on futures contracts.......... 126,616
Fund shares redeemed........................... 106,086
Transfer agent................................. 63,557
Custodian...................................... 18,311
Accrued expenses................................. 69,871
------------
Total liabilities.......................... 14,931,677
------------
Net assets....................................... $603,968,554
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share) 1
billion shares authorized
Institutional Class............................ $ 38,858
Institutional Service Class.................... 1,881
Additional paid-in capital....................... 505,997,702
Accumulated undistributed net investment
income......................................... 6,192,201
Accumulated undistributed net realized gain on
investments.................................... 17,614,117
Accumulated net realized loss on foreign currency
transactions................................... (532,585)
Net unrealized appreciation on investments....... 74,930,965
Net unrealized depreciation on foreign currency
transactions................................... (274,585)
------------
Net assets....................................... $603,968,554
============
Institutional Class
Net assets applicable to outstanding shares...... $576,166,655
============
Shares of capital stock outstanding.............. 38,857,601
============
Net asset value per share outstanding............ $ 14.83
============
Institutional Service Class
Net assets applicable to outstanding shares...... $ 27,801,899
============
Shares of capital stock outstanding.............. 1,881,447
============
Net asset value per share outstanding............ $ 14.78
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................... $ 1,936,439
Interest........................................ 10,153,901
-----------
Total income................................ 12,090,340
-----------
Expenses:
Management...................................... 1,824,745
Transfer agent.................................. 219,560
Interest........................................ 126,982
Custodian....................................... 57,197
Service......................................... 35,834
Professional.................................... 35,529
Shareholder communication....................... 20,144
Registration.................................... 7,203
Directors....................................... 5,612
Miscellaneous................................... 30,485
-----------
Total expenses.............................. 2,363,291
-----------
Net investment income............................. 9,727,049
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Security transactions........................... 2,233,456
Futures transactions............................ 15,861,521
Foreign currency transactions................... (532,585)
-----------
Net realized gain on investments and foreign
currency transactions........................... 17,562,392
-----------
Net change in unrealized appreciation
(depreciation) on investments:
Security transactions........................... 17,853,534
Futures transactions............................ (164,704)
Foreign currency transactions................... 218,974
-----------
Net unrealized gain on investments and foreign
currency transactions........................... 17,907,804
-----------
Net realized and unrealized gain on investments
and foreign currency transactions............... 35,470,196
-----------
Net increase in net assets resulting from
operations...................................... $45,197,245
===========
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $1,334.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
63
<PAGE> 66
ASSET MANAGER FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income................................... $ 9,727,049 $ 15,236,926 $ 12,613,417
Net realized gain on investments and foreign currency
transactions.......................................... 17,562,392 16,206,043 89,514,209
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions......... 17,907,804 (2,377,664) (11,001,243)
-------------- -------------- --------------
Net increase in net assets resulting from operations.... 45,197,245 29,065,305 91,126,383
-------------- -------------- --------------
Dividends and distributions to shareholders:
From net investment income:
Institutional Class................................... (17,828,416) (183,826) (12,168,160)
Institutional Service Class........................... (897,200) (5,609) (369,777)
From net realized gain on investments:
Institutional Class................................... (15,767,517) (49,743,906) (61,223,905)
Institutional Service Class........................... (853,676) (2,839,920) (2,048,254)
-------------- -------------- --------------
Total dividends and distributions to shareholders... (35,346,809) (52,773,261) (75,810,096)
-------------- -------------- --------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 67,637,682 43,269,895 62,917,440
Institutional Service Class........................... 1,762,368 15,707,216 6,958,317
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 33,591,726 49,927,732 73,392,054
Institutional Service Class........................... 1,727,228 2,845,529 2,416,225
-------------- -------------- --------------
104,719,004 111,750,372 145,684,036
Cost of shares redeemed:
Institutional Class................................... (48,179,338) (57,515,045) (65,656,399)
Institutional Service Class........................... (5,368,272) (4,882,440) (2,755,471)
-------------- -------------- --------------
Increase in net assets derived from capital share
transactions........................................ 51,171,394 49,352,887 77,272,166
-------------- -------------- --------------
Net increase in net assets............................ 61,021,830 25,644,931 92,588,453
NET ASSETS:
Beginning of period....................................... 542,946,724 517,301,793 424,713,340
-------------- -------------- --------------
End of period............................................. $ 603,968,554 $ 542,946,724 $ 517,301,793
============== ============== ==============
Accumulated undistributed net investment income at end of
period.................................................. $ 6,192,201 $ 15,190,768 $ 188,741
============== ============== ==============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
64
<PAGE> 67
MAINSTAY
INSTITUTIONAL FUNDS INC.
(THIS PAGE INTENTIONALLY LEFT BLANK)
65
<PAGE> 68
ASSET MANAGER FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 14.57 $ 14.50 $ 15.36 $ 15.33 $ 14.83 $ 14.81
-------- -------- -------- -------- -------- --------
Net investment income....... 0.24 0.22 0.41 0.39 0.43 0.39
Net realized and unrealized
gain (loss) on
investments................ 0.97 0.97 0.41 0.38 2.70 2.69
Net realized and unrealized
gain (loss) on foreign
currency transactions...... (0.01) (0.01) (0.03) (0.03) 0.02 0.02
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 1.20 1.18 0.79 0.74 3.15 3.10
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
From net investment
income..................... (0.50) (0.46) (0.01) (0.00)(a) (0.43) (0.39)
From net realized gain on
investments................ (0.44) (0.44) (1.57) (1.57) (2.19) (2.19)
In excess of net realized
gain on investments........ -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.............. (0.94) (0.90) (1.58) (1.57) (2.62) (2.58)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period..................... $ 14.83 $ 14.78 $ 14.57 $ 14.50 $ 15.36 $ 15.33
======== ======== ======== ======== ======== ========
Total investment return..... 8.40%(b) 8.33%(b) 5.58%(b) 5.31%(b) 21.31% 21.00%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 3.44%+ 3.19%+ 3.40%+ 3.15%+ 2.64% 2.39%
Net expenses............... 0.83%+ 1.08%+ 0.78%+ 1.03%+ 0.80% 1.05%
Expenses (before
reimbursement)........... 0.83%+ 1.08%+ 0.78%+ 1.03%+ 0.80% 1.05%
Portfolio turnover rate..... 9% 9% 18% 18% 55% 55%
Net assets at end of period
(in 000's)................. $576,167 $ 27,802 $513,860 $ 29,087 $500,449 $ 16,853
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Less than one cent per share.
(b) Total return is not annualized.
(c) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
66
<PAGE> 69
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(c) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 13.19 $ 13.19 $ 11.79 $ 11.79 $ 10.67 $ 10.67 $ 11.67
-------- -------- -------- -------- -------- -------- --------
0.34 0.31 0.38 0.34 0.48 0.47 0.45
3.15 3.13 1.53 1.53 2.39 2.39 (0.55)
(0.00)(a) (0.00)(a) (0.00)(a) (0.00)(a) (0.01) (0.01) --
-------- -------- -------- -------- -------- -------- --------
3.49 3.44 1.91 1.87 2.86 2.85 (0.10)
-------- -------- -------- -------- -------- -------- --------
(0.34) (0.31) (0.38) (0.34) (0.48) (0.47) (0.45)
(1.51) (1.51) (0.13) (0.13) (1.18) (1.18) (0.42)
-- -- -- -- (0.08) (0.08) (0.03)
-------- -------- -------- -------- -------- -------- --------
(1.85) (1.82) (0.51) (0.47) (1.74) (1.73) (0.90)
-------- -------- -------- -------- -------- -------- --------
$ 14.83 $ 14.81 $ 13.19 $ 13.19 $ 11.79 $ 11.79 $ 10.67
======== ======== ======== ======== ======== ======== ========
26.69% 26.30% 16.16% 15.89% 26.81% 26.70% (0.86%)
2.27% 2.02% 2.99% 2.74% 4.03% 3.78% 3.63%
0.76% 1.01% 0.70% 0.95% 0.70% 0.95% 0.70%
0.76% 1.01% 0.75% 1.00% 0.77% 1.02% 0.75%
19% 19% 103% 103% 261% 261% 128%
$414,824 $ 9,889 $323,790 $ 5,508 $273,351 $ 3,536 $229,079
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
67
<PAGE> 70
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
During the last two months of 1999, most international markets showed strong
performance both in local and U.S. dollar terms. For the first four months of
2000, however, international equities were highly volatile and results were
generally disappointing for U.S. investors. While several markets had positive
results in local-currency terms, Finland and Sweden were the only countries in
the MSCI EAFE Index(1) to provide positive returns in U.S. dollar terms from
January through April of 2000.
Despite continued corporate restructuring and economic strengthening, European
markets were mixed, with Austria, Belgium, Ireland, Switzerland, and the U.K.
declining in U.S. dollar terms, while most other countries advanced for the six
months ended April 30, 2000. Finland and Sweden were the big winners, returning
81.29% and 52.84% respectively in U.S. dollar terms.
Led by a recovery in Japan, Asia was strong through the end of 1999. In the
early months of 2000, however, Japanese investments took a breather, closing the
six-month reporting period with a return of just 3.34%. While Australia managed
to provide a positive return in U.S. dollar terms for the six months ended April
30, 2000, New Zealand stocks slipped into negative territory over the same
period.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional International
Equity Fund returned 4.25% for Institutional Class shares and 4.13% for Service
Class shares. This compared with a 6.72% return for the MSCI EAFE Index over the
same period. Both share classes underperformed the 14.17% return of the average
Lipper(2) international fund during the six-month reporting period.
Despite strength in many of its core holdings, the Fund was negatively impacted
by investments in several declining European markets and exposure to the euro,
which lost about 10% during the first four months of 2000. The Fund's heavy
weighting in Japan also detracted from the Fund's relative performance, in a
period when other countries provided better returns.
EUROPEAN HOLDINGS
In Europe, the Fund continued to favor peripheral countries. Finland was the
best-performing market, with Nokia Oyj the Fund's largest holding as of April
30, 2000. Although Ireland provided a negative total return for the six-month
reporting period, we believe it has the potential for better-than-average
economic growth and we remain bullish on Irish stocks for the Fund. Portuguese
equities were volatile during the Fund's semiannual period, but we believe the
market has room for economic expansion.
Core Europe, particularly France and Germany, contributed positively to the
Fund's performance, despite the downward spiral of the euro. Although we believe
the euro is excessively undervalued, the Fund has taken a more defensive
position in this currency after sustaining losses in it over the last several
months. In April, the Fund participated in the successful offering of shares in
T-Online International AG, Deutsche Telecom's Internet provider.
JAPANESE EQUITIES
In response to Japan's economic recovery, we substantially strengthened the
Fund's allocation to Japanese equities, only to see the market stall, with a
negative impact on the Fund's performance. Recently, Japan has seen a correction
in growth stocks and value equities have recovered somewhat. We believe that
Japan will not be immune to the worldwide pharmaceutical consolidation and hold
positions in Takeda Corp. and Yamanouchi Pharmaceutical. The Fund also benefited
when a recent Oracle Japan
--------------------------------------------------------------------------------
(1) The Morgan Stanley Capital International Europe, Australasia, Far East
Index--the EAFE Index--is an unmanaged index generally considered to be
representative of the international stock market. Returns assume the
reinvestment of all dividend and capital gain distributions. An investment
cannot be made directly into an index.
(2) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
68
<PAGE> 71
offering moved the stock from the JASDAQ to the more-liquid Tokyo Stock
Exchange. In selecting securities for the Fund, we continue to favor Japanese
stocks with worldwide reach, but are venturing into local names poised to
benefit from industry expansion and the nation's economic recovery.
LOOKING AHEAD
All eyes are on the central banks, as interest rate concerns continue to impact
stock markets in the U.S. and Europe. We believe economic growth will continue
to flourish in Europe and Asia and that information technologies and
communications will continue to be strong sectors around the globe. Whatever the
markets or world economies may bring, the Fund will continue to seek long-term
growth of capital by investing in a portfolio consisting primarily of non-U.S.
equity securities, with current income as a secondary objective.
JOSEPH PORTERA
Portfolio Manager
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in foreign securities may be subject to greater risks than domestic
investments. These risks include currency fluctuations, changes in U.S. or
foreign tax or currency laws, and changes in monetary policies and economic and
political conditions in foreign countries.
69
<PAGE> 72
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INTERNATIONAL EQUITY FUND VS
MSCI EAFE INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND MISCI EAFE INDEX
------------------------- --------------------------------
<S> <C> <C>
7/31/92 250000 250000
92 236565 250373
93 295768 331890
94 320490 357734
95 343479 397839
96 384995 421866
97 405952 429381
98 496921 515256
99 640064 654213
00 as of 4/30/00 576189 619147
</TABLE>
Source: Lipper, Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 7/31/92.*
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INTERNATIONAL EQUITY FUND VS
MSCI EAFE INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND MISCI EAFE INDEX
------------------------- -----------------------------------
<S> <C> <C>
7/31/92 250000 250000
92 236565 250373
93 295768 331890
94 320490 357734
95 342463 397839
96 382164 421866
97 400803 429381
98 489775 515256
99 628971 654213
00 as of 4/30/00 565944 619147
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(+) AVERAGE ANNUAL TOTAL RETURN(+)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
-----------------------------------------------------------------------------------------------------------------
SIX-MONTH PERIOD ONE YEAR FIVE YEARS SINCE INCEPTION
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Equity Fund Institutional Class* 4.25% 10.79% 12.49% 11.37%
International Equity Fund Service Class* 4.13 10.46 12.11 11.11
Average Lipper international fund(++) 14.17 24.75 13.15 12.55
MSCI EAFE Index(sec.) 6.72 13.89 10.36 12.41
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
TEN MONTHS
ENDED
YEAR END DECEMBER 31 OCTOBER 31
------------------------------------------------------------------------------------------------------ -------------
1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
-5.37 25.03 8.36 7.17 12.09 5.44 22.41 11.23
<CAPTION>
SIX MONTHS
ENDED
APRIL 30
------------
2000
----
<S> <C>
4.25
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
The inception date of MainStay Institutional International Equity Fund was
1/1/95.
(*) The inception date of MainStay Institutional International Equity Fund's
predecessor separate account ("Separate Account") is 7/31/92. Performance
figures, and, in the case of the graphs reflecting the investment of
$250,000, investment results include the historical performance of the
Separate Account for the period prior to MainStay Institutional
International Equity Fund's commencement of operations on 1/1/95. MacKay
Shields LLC, MainStay Institutional International Equity Fund's
subadvisor, served as investment advisor to the Separate Account, and the
investment objective, policies, restrictions, guidelines, and management
style of the Separate Account were substantially similar to those of
MainStay Institutional International Equity Fund. Performance figures and
investment results for the period prior to 1/1/95 have been calculated
using the Separate Account's expense structure, which generally was
higher than the expense structure of MainStay Institutional International
Equity Fund. The Separate Account was not registered under the Investment
Company Act of 1940 ("1940 Act") and therefore was not subject to certain
investment restrictions imposed under the 1940 Act. If the Separate
Account had been registered under the 1940 Act, the Separate Account's
performance and investment results may have been adversely affected.
(+) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Morgan Stanley Capital International Europe, Australasia, Far East
Index--The EAFE Index--is an unmanaged index generally considered to be
representative of the international stock market. Returns assume the
reinvestment of all dividend and capital gain distributions. An
investment cannot be made directly into an index.
70
<PAGE> 73
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (99.7%)+
SHARES VALUE
--------------------------
<S> <C> <C>
AUSTRALIA (2.2%)
Broken Hill Proprietary Co.,
Ltd. (energy sources)........ 47,618 $ 512,356
Cable & Wireless Optus, Ltd.
(telecommunications) (a)..... 238,245 768,757
Commonwealth Bank of Australia
(banking).................... 39,322 598,389
News Corp., (The)
(broadcasting & publishing).. 120,883 1,533,857
Securenet Ltd. (business &
public services)............. 74,380 221,343
------------
3,634,702
------------
BELGIUM (1.1%)
Electrabel, S.A. (utilities-
electrical & gas)............ 2,391 579,376
Fortis AG (insurance)......... 30,047 760,396
Solvay, S.A. Class A
(chemicals).................. 6,424 435,554
------------
1,775,326
------------
DENMARK (0.2%)
Tele Danmark AS Class B
(telecommunications)......... 4,634 339,840
------------
FINLAND (4.8%)
Comptel Oyj
(telecommunications)......... 5,055 114,521
Nokia Oyj Class A (electrical
& electronics)............... 113,844 6,546,396
Outokumpu Oyj (metals-
nonferrous).................. 46,411 547,714
UPM-Kymmene Oyj (forest
products & paper)............ 19,750 512,950
------------
7,721,581
------------
FRANCE (9.8%)
Air Liquide, S.A.
(chemicals).................. 2,945 384,318
AXA, S.A. (insurance)......... 5,677 843,792
Carrefour, S.A.
(merchandising).............. 18,006 1,174,879
Compagnie Generale d'Industrie
et de Participations, S.A.
(multi-industry)............. 11,900 561,203
Elf Aquitaine, S.A. (energy
sources)..................... 9 1,617
France Telecom, S.A.
(telecommunications)......... 14,286 2,215,812
Groupe Danone, S.A. (food &
household products).......... 3,158 692,134
Lafarge, S.A. (building
materials & components)...... 3,913 324,856
L'Oreal, S.A. (health &
personal care)............... 2,155 1,465,038
Pernod-Ricard, S.A. (beverages
& tobacco)................... 4,877 221,110
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------
<S> <C> <C>
FRANCE (CONTINUED)
Pinault-Printemps-Redoute,
S.A. (merchandising)......... 2,204 $ 445,689
PSA Peugeot Citroen
(automobiles)................ 4,110 852,466
Renault, S.A. (automobiles)... 7,793 355,089
Rhodia, S.A. (chemicals)...... 24,000 446,174
Schneider, S.A. (electrical &
electronics)................. 5,539 363,435
Societe Generale, S.A. Class A
(banking).................... 2,020 419,342
Suez Lyonnaise des Eaux, S.A.
(business & public
services).................... 3,901 613,236
Suez Lyonnaise des Eaux, S.A.
Strip (business & public
services) (d)................ 4,160 38
Thomson CSF, S.A. (aerospace &
military technology)......... 10,048 358,030
Total Fina Elf, S.A. Class B
(energy sources) (c)......... 14,993 2,280,382
Total Fina Elf, S.A. Strip
(energy sources) (d)......... 5,445 50
Vivendi, S.A. (business &
public services) (c)......... 18,686 1,852,712
------------
15,871,402
------------
GERMANY (10.3%)
Allianz AG Registered
(insurance).................. 3,545 1,368,146
Bayer AG (chemicals).......... 20,792 863,073
Biodata Information Technology
AG (business & public
services).................... 240 68,020
DaimlerChrysler AG
(automobiles)................ 12,585 734,000
Deutsche Bank AG (banking).... 10,541 709,887
Deutsche Telekom AG
(telecommunications) (c)..... 30,816 1,979,831
Dresdner Bank AG (banking).... 16,646 691,731
Epcos AG (electronic
components & instruments).... 7,924 1,122,891
Infinion Technologies AG
(electronic components &
instruments)................. 3,300 227,803
Karstadt AG (merchandising)... 13,786 420,868
Metro AG (merchandising)...... 9,753 371,071
Muenchener Rueckversicherungs-
Gesellschaft AG Registered
(insurance).................. 1,369 400,471
RWE AG (utilities-electrical &
gas)......................... 15,558 501,903
SAP AG (business & public
services).................... 2,138 1,005,357
Schering AG (health & personal
care) (c).................... 9,875 1,399,363
Siemens AG (electrical &
electronics)................. 18,990 2,808,706
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
71
<PAGE> 74
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
--------------------------
<S> <C> <C>
GERMANY (CONTINUED)
T-Online International AG
(business & public
services)..................... 21,340 $ 787,612
Veba AG (utilities-electrical
& gas)....................... 14,817 733,876
Viag AG (utilities-electrical
& gas)....................... 25,602 494,621
------------
16,689,230
------------
GREECE (0.5%)
Hellenic Telecommunications
Organization S.A.
(telecommunications)......... 70,600 825,137
------------
HONG KONG (0.6%)
Cheung Kong (Holdings) Ltd.
(real estate)................ 82,000 979,049
Sino-I.com Ltd. (business &
public services)............. 1,019,000 66,719
------------
1,045,768
------------
IRELAND (2.6%)
Allied Irish Banks PLC
(banking).................... 73,671 737,160
CRH PLC (building materials &
components).................. 71,041 1,139,422
Eircom PLC
(telecommunications)......... 126,180 445,579
Elan Corp. PLC (health &
personal care) (a)........... 18,603 830,695
Fyffes PLC (food & household
products).................... 225,007 379,342
Smurfit (Jefferson) Group PLC
(forest products & paper).... 326,020 713,047
------------
4,245,245
------------
ITALY (2.7%)
Assicurazioni Generali S.p.A.
(insurance).................. 13,143 374,888
Banca Intesa S.p.A.
(banking).................... 96,064 354,551
ENI S.p.A. (energy sources)... 203,632 1,015,070
Telecom Italia S.p.A.
(telecommunications)......... 53,107 744,339
Telecom Italia Mobile S.p.A.
(telecommunications) (c)..... 151,266 1,447,416
Unicredito Italiano S.p.A.
(banking).................... 107,565 437,189
------------
4,373,453
------------
JAPAN (30.4%)
Ajinomoto Co., Inc. (food &
household products).......... 62,000 708,502
Bandai Co., Ltd. (recreation &
other consumer goods)........ 18,000 599,594
Bank of Tokyo-Mitsubishi, Ltd.
(banking).................... 85,000 1,096,388
Bridgestone Corp. (industrial
components).................. 14,000 303,776
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Canon, Inc. (data processing &
reproduction)................ 11,000 $ 502,808
Fuji Bank (banking)........... 62,000 516,317
Fujitsu, Ltd. (data processing
& reproduction).............. 57,000 1,613,908
Hitachi, Ltd. (electrical &
electronics)................. 51,000 608,755
Honda Motor Co., Ltd.
(automobiles)................ 23,000 1,027,916
Industrial Bank of Japan, Ltd.
(The) (banking).............. 126,000 1,037,631
Ito-Yokado Co., Ltd.
(merchandising).............. 22,000 1,606,136
Japan Airlines Co., Ltd.
(transportation-airlines).... 193,000 600,039
Japan Telecommunication Co.,
Ltd. (telecommunications).... 18 916,047
Matsushita Electric Industrial
Co., Ltd. (appliances &
household durables).......... 21,000 555,735
Mitsubishi Electric Corp.
(electrical & electronics)... 128,000 1,093,186
Mitsubishi Estate Co., Ltd.
(real estate)................ 30,000 337,272
Mitsubishi Heavy Industries,
Ltd. (machinery &
engineering)................. 84,000 261,157
Mitsui Fudosan Co., Ltd. (real
estate)...................... 33,000 335,273
NEC Corp. (electrical &
electronics)................. 70,000 1,904,267
Nikko Securities Co., Ltd.
(financial services)......... 89,000 1,049,984
Nintendo Co., Ltd. (recreation
& other consumer goods)...... 4,000 666,216
Nippon Mitsubishi Oil Corp.
(energy sources)............. 96,000 332,220
Nippon Steel Corp. (metals-
steel)....................... 137,000 308,042
Nippon Telegraph & Telephone
Corp. (telecommunications)... 203 2,517,001
NKK Corp. (metals-steel)
(a).......................... 949,000 579,552
NTT Data Corp. (business &
public services)............. 138 1,838,756
NTT DoCoMo, Inc.
(telecommunications)......... 60 2,004,200
OKI Electric Industries Co.,
Ltd. (electrical &
electronics)................. 117,000 822,777
Olympus Optical Co., Ltd.
(electronic components &
instruments)................. 29,000 475,493
Oracle Corp. (business &
public services)............. 2,800 2,254,031
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
72
<PAGE> 75
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
--------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Pioneer Electronic Corp.
(appliances & household
durables)..................... 15,000 $ 409,445
Rohm Co., Ltd. (electronic
components & instruments).... 6,900 2,311,214
Sharp Corp. (appliances &
household durables).......... 22,000 424,435
Softbank Corp. (business &
public services)............. 7,434 1,834,315
Sony Corp. (appliances &
household durables).......... 30,200 3,481,016
Sumitomo Bank, Ltd.
(banking).................... 53,000 662,543
Sumitomo Electric Industries,
Ltd. (industrial
components).................. 18,000 239,671
Sumitomo Forestry Co., Ltd.
(building materials &
components).................. 49,000 278,839
Sumitomo Marine & Fire
Insurance Co., Ltd.
(insurance).................. 204,000 1,075,939
Takeda Chemical Industries,
Ltd. (health & personal
care)........................ 20,000 1,315,777
TDK Corp. (electronic
components & instruments).... 4,000 535,564
Tokio Marine & Fire Insurance
Co., Ltd. (insurance)........ 120,000 1,170,319
Tokyo Electric Power Co., Inc.
(utilities-electrical &
gas)......................... 14,300 337,411
Tokyo Seimitsu Co., Ltd.
(electronic components &
instruments)................. 9,600 1,003,765
Toshiba Corp. (electrical &
electronics)................. 113,000 1,095,777
Tostem Corp. (building
materials & components)...... 17,000 250,266
Toyota Motor Corp.
(automobiles)................ 61,000 3,031,005
Trans Cosmos, Inc. (business &
public services)............. 1,000 198,940
Yamanouchi Pharmaceutical Co.,
Ltd. (health & personal
care)........................ 23,000 1,215,197
------------
49,344,417
------------
LUXEMBOURG (0.2%)
Carrier 1 International, S.A.
(telecommunications)......... 2,400 197,935
Thiel Logistik AG (business &
public services)............. 2,000 124,849
------------
322,784
------------
NETHERLANDS (3.8%)
ABN AMRO Holding N.V.
(banking).................... 28,696 592,314
Akzo Nobel N.V. (chemicals)... 8,253 338,670
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------
<S> <C> <C>
NETHERLANDS (CONTINUED)
Heineken N.V. (beverages &
tobacco)..................... 8,534 $ 474,401
ING Groep N.V. (financial
services).................... 19,229 1,051,757
Koninklijke KPN N.V.
(telecommunications)......... 5,235 528,829
Koninklijke (Royal) Philips
Electronics N.V. (appliance &
household durables).......... 38,036 1,700,880
Royal Dutch Petroleum Co.
(energy sources)............. 21,495 1,241,908
TNT Post Group N.V. (business
& public services)........... 9,646 210,970
Wolters Kluwer CVA N.V.
(broadcasting & publishing).. 4,914 116,253
------------
6,255,982
------------
NEW ZEALAND (0.1%)
Contact Energy Ltd.
(utilities-electrical &
gas)......................... 180,684 207,322
------------
NORWAY (0.0%)(b)
Stepstone ASA (business &
public services)............. 9,700 32,525
------------
PORTUGAL (2.1%)
Banco Comercial Portugues,
S.A. Registered (banking).... 163,049 766,709
Banco Espirito Santo, S.A.
(banking).................... 37,576 873,200
Electricidade de Portugal,
S.A. (utilities-electrical &
gas)......................... 22,038 391,624
Portugal Telecom, S.A.
Registered
(telecommunications)......... 54,392 608,195
Sonae SGPS, S.A. (forest
products & paper)............ 17,891 720,642
------------
3,360,370
------------
SINGAPORE (1.2%)
Singapore Press Holdings Ltd.
(broadcasting & publishing).. 96,000 1,877,835
------------
SPAIN (3.5%)
Acerinox, S.A.
(metals-steel)............... 10,831 432,320
Banco Bilbao Vizcaya, S.A.
Registered (banking)......... 51,428 702,997
Banco Santander Central
Hispano, S.A. (banking)...... 94,319 985,883
Endesa, S.A.
(utilities-electrical &
gas)......................... 26,605 578,491
Gas Natural SDG, S.A.
(utilities-electrical &
gas)......................... 11,422 191,316
Iberdrola, S.A. (utilities-
electrical & gas)............ 34,107 438,565
Repsol, S.A. (energy
sources)..................... 26,868 550,910
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
73
<PAGE> 76
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
--------------------------
<S> <C> <C>
SPAIN (CONTINUED)
Telefonica, S.A.
(telecommunications) (a)(c)... 73,879 $ 1,648,144
Terra Networks, S.A. (business
& public services)........... 3,200 200,000
------------
5,728,626
------------
SWEDEN (1.8%)
AstraZeneca AB Series A
(health & personal care)..... 21,384 894,480
ForeningsSparbanken AB
(banking).................... 18,709 275,838
Hennes & Mauritz AB Series B
(merchandising).............. 10,878 289,172
Nordic Baltic Holding AB
(banking).................... 69,493 440,771
Skandia Forsakrings AB
(insurance).................. 13,879 665,036
Svenska Handelsbanken Series A
(banking).................... 21,663 286,726
------------
2,852,023
------------
SWITZERLAND (4.3%)
Credit Suisse Group Registered
(banking).................... 4,877 882,990
Nestle S.A. Registered (food &
household products).......... 844 1,491,286
Novartis AG Registered (health
& personal care)............. 681 953,518
Roche Holdings AG
Genusscheine (health &
personal care)............... 136 1,423,632
Schweizerische
Rueckversicherungs
Gesellschaft Registered
(insurance).................. 375 603,967
UBS AG Registered (banking)... 4,768 1,170,868
Zurich Allied AG Registered
(insurance).................. 938 399,624
------------
6,925,885
------------
UNITED KINGDOM (17.1%)
Abbey National PLC (banking).. 31,264 357,863
Allied Zurich PLC
(insurance).................. 20,353 203,033
Barclays PLC (banking)........ 30,976 795,897
Bass PLC (leisure &
tourism)..................... 80,840 950,002
BG PLC (utilities-electrical &
gas)......................... 100,169 600,330
Boots Co. PLC
(merchandising).............. 36,953 287,530
BP Amoco PLC (energy
sources)..................... 171,316 1,486,475
British Aerospace PLC
(aerospace & military
technology).................. 40,577 250,170
British Airways PLC
(transportation-airlines).... 90,125 469,269
British Telecommunications PLC
(telecommunications)......... 53,335 960,607
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Cable & Wireless PLC
(telecommunications)......... 109,401 $ 1,819,755
Carlton Communications PLC
(leisure & tourism).......... 221,792 2,686,242
CGU PLC (insurance)........... 35,752 513,852
Diageo PLC (beverages &
tobacco)..................... 74,670 607,002
EMI Group PLC (recreation &
other consumer goods)........ 109,572 1,054,467
Granada Group PLC (leisure &
tourism)..................... 37,823 370,500
Great Universal Stores PLC
(The) (merchandising)........ 45,657 276,845
Imperial Chemical Industries
PLC (chemicals).............. 98,899 851,163
Jazztel PLC
(telecommunications) (a)..... 4,648 241,696
Kingfisher PLC
(merchandising).............. 133,762 1,100,450
Lloyds TSB Group PLC
(banking).................... 94,584 929,470
Marconi PLC
(telecommunications)......... 94,634 1,186,886
National Power PLC (utilities-
electrical & gas)............ 26,680 121,489
National Westminster Bank PLC
(banking).................... 28,286 594,880
Prudential Corp. PLC
(insurance).................. 44,272 683,069
Reed International PLC
(broadcasting & publishing).. 44,978 312,846
Rio Tinto PLC Registered
(metals-nonferrous).......... 32,305 502,980
Royal Bank of Scotland Group
PLC (banking)................ 45,483 709,226
Sainsbury (J.) PLC
(merchandising).............. 52,947 278,381
Scottish Power PLC (utilities-
electrical & gas)............ 44,883 361,172
SmithKline Beecham PLC (health
& personal care)............. 125,514 1,725,410
Tesco PLC (merchandising)..... 160,414 549,724
Unilever PLC (food & household
products).................... 86,372 520,684
Vodafone AirTouch PLC
(telecommunications)......... 742,296 3,420,745
------------
27,780,110
------------
UNITED STATES (0.4%)
Global Telesystems Group, Inc.
(telecommunications)......... 39,300 572,306
------------
Total Common Stocks
(Cost $131,128,942).......... 161,781,869
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
74
<PAGE> 77
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
PURCHASED OPTIONS (0.1%)
NOTIONAL
AMOUNT VALUE
--------------------------
<S> <C> <C>
AUSTRALIA (0.0%) (b)
Australian Dollar Call/U.S.
Dollar Put
Strike price A$0.62
Expire 5/17/00 (a)(g)........ 11,100,000 $ 589
------------
UNITED STATES (0.1%)
U.S. Dollar Call/Euro Put
Strike price E0.90
Expire 6/28/00 (a)(g)........ 8,135,000 131,483
------------
Total Purchased Options
(Cost $187,713).............. 132,072
------------
<CAPTION>
SHORT-TERM INVESTMENT (0.6%)
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
UNITED STATES (0.6%)
Salomon Smith Barney Holdings
Inc.
(financial services)
6.00%, due 5/2/00............ $ 1,000,000 999,499
------------
Total Short-Term Investment
(Cost $999,499).............. 999,499
------------
Total Investments
(Cost $132,316,154) (e)...... 100.4% 162,913,440(f)
Liabilities in Excess of
Cash and Other Assets........ (0.4) (702,237)
------------ ------------
Net Assets.................... 100.0% $162,211,203
============ ============
<CAPTION>
WRITTEN CALL OPTION (-0.3%)
NOTIONAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
UNITED STATES (-0.3%)
U.S. Dollar Call/Australian
Dollar Put
Strike price A$0.61
Expire 5/17/00 (a)(g)........ (11,100,000) $ (494,801)
------------
Total Written Call Option
(Premium $94,461)............ $ (494,801)
============
</TABLE>
------------
(a) Non-income producing security.
(b) Less than one tenth of a percent.
(c) Segregated or partially segregated as collateral for forward foreign
currency contracts.
(d) Strip securities represent a secondary class of shares traded in the
foreign market.
(e) The cost for Federal income tax purposes is $133,470,133.
(f) At April 30, 2000 net unrealized appreciation for securities was
$29,443,307, based on cost for Federal income tax purposes. This consisted
of aggregate gross unrealized appreciation for all investments on which
there was an excess of market value over cost of $40,032,247 and aggregate
gross unrealized depreciation for all investments on which there was an
excess of cost over market value of $10,588,940.
(g) The following abbreviations are used in the above portfolio:
A$--Australian Dollars
E--Euro
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
75
<PAGE> 78
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
The table below sets forth the diversification of International Equity Fund
investments excluding currency options by industry.
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
VALUE PERCENT +
------------------------
<S> <C> <C>
Aerospace & Military
Technology.................. $ 608,199 0.4%
Appliances & Household
Durables.................. 6,571,511 4.1
Automobiles................. 6,000,476 3.7
Banking..................... 16,964,218 10.5
Beverages & Tobacco......... 1,302,513 0.8
Broadcasting & Publishing... 3,840,789 2.4
Building Materials &
Components................ 1,993,383 1.2
Business & Public
Services.................. 11,309,422 7.0
Chemicals................... 3,318,952 2.0
Data Processing &
Reproduction.............. 2,116,716 1.3
Electrical & Electronics.... 15,243,300 9.4
Electronic Components &
Instruments............... 5,676,731 3.5
Energy Sources.............. 7,420,989 4.6
Financial Services.......... 3,101,241 1.9
Food & Household Products... 3,791,948 2.3
Forest Products & Paper..... 1,225,997 0.8
Health & Personal Care...... 11,223,109 6.9
Industrial Components....... 543,447 0.3
Insurance................... 9,725,075 6.0
Leisure & Tourism........... 4,006,744 2.5
Machinery & Engineering..... 261,157 0.2
Merchandising............... 7,521,386 4.6
Metals-Nonferrous........... 1,050,694 0.6
Metals-Steel................ 1,319,914 0.8
Multi-Industry.............. 561,203 0.3
Real Estate................. 1,651,594 1.0
Recreation & Other Consumer
Goods..................... 2,320,277 1.4
Telecommunications.......... 25,503,580 15.7
Transportation-Airlines..... 1,069,307 0.7
Utilities-Electrical &
Gas....................... 5,537,496 3.4
------------ -----
162,781,368 100.3
Liabilities in Excess of
Cash and Other Assets..... (570,165) (0.3)
------------ -----
Net Assets.................. $162,211,203 100.0%
============ =====
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
76
<PAGE> 79
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $132,316,154)............................. $162,913,440
Cash denominated in foreign currencies
(identified cost $712,997)..................... 658,133
Cash............................................. 1,190
Receivables:
Securities sold................................ 2,243,838
Dividends and interest......................... 638,973
Fund shares sold............................... 300,644
Unrealized appreciation on foreign currency
forward contracts.............................. 1,604,958
------------
Total assets............................... 168,361,176
------------
LIABILITIES:
Written call option, at value (premium received
$94,461)....................................... 494,801
Payables:
Investment securities purchased................ 2,668,972
MainStay Management............................ 108,059
Custodian...................................... 7,021
Transfer agent................................. 4,404
Fund shares redeemed........................... 2,337
Accrued expenses................................. 51,513
Unrealized depreciation on foreign currency
forward contracts.............................. 2,812,866
------------
Total liabilities.......................... 6,149,973
------------
Net assets....................................... $162,211,203
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class............................ $ 12,277
Institutional Service Class.................... 43
Additional paid-in capital....................... 123,397,826
Accumulated distribution in excess of net
investment income.............................. (22,647)
Accumulated undistributed net realized gain on
investments.................................... 11,671,130
Accumulated net realized loss on foreign currency
transactions................................... (1,720,767)
Net unrealized appreciation on investments and
written call option............................ 30,196,946
Net unrealized depreciation on translation of
other assets and liabilities in foreign
currencies and foreign currency forward
contracts...................................... (1,323,605)
------------
Net assets....................................... $162,211,203
============
Institutional Class
Net assets applicable to outstanding shares...... $161,653,453
============
Shares of capital stock outstanding.............. 12,276,903
============
Net asset value per share outstanding............ $ 13.17
============
Institutional Service Class
Net assets applicable to outstanding shares...... $ 557,750
============
Shares of capital stock outstanding.............. 42,843
============
Net asset value per share outstanding............ $ 13.02
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................... $ 1,001,940
Interest........................................ 35,654
-----------
Total income................................ 1,037,594
-----------
Expenses:
Management...................................... 716,496
Custodian....................................... 52,551
Professional.................................... 26,335
Transfer agent.................................. 13,862
Registration.................................... 9,916
Shareholder communication....................... 5,438
Directors....................................... 1,591
Service......................................... 745
Amortization of organization expense............ 377
Miscellaneous................................... 28,355
-----------
Total expenses.............................. 855,666
-----------
Net investment income............................. 181,928
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Security transactions........................... 12,429,955
Option transactions............................. (467,692)
Foreign currency transactions................... (1,720,767)
-----------
Net realized gain on investments and foreign
currency transactions........................... 10,241,496
-----------
Net change in unrealized appreciation
(depreciation) on:
Security transactions........................... (2,854,362)
Written call option transactions................ (400,340)
Translation of other assets and liabilities in
foreign currencies and foreign currency
forward contracts............................. (644,437)
-----------
Net unrealized loss on investments and foreign
currency transactions........................... (3,899,139)
-----------
Net realized and unrealized gain on investments
and foreign currency transactions............... 6,342,357
-----------
Net increase in net assets resulting from
operations...................................... $ 6,524,285
===========
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $124,112.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
77
<PAGE> 80
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income................................... $ 181,928 $ 1,194,047 $ 1,485,360
Net realized gain on investments and foreign currency
transactions.......................................... 10,241,496 9,830,190 3,539,335
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions......... (3,899,139) 4,528,102 21,013,865
------------ ------------ ------------
Net increase in net assets resulting from operations.... 6,524,285 15,552,339 26,038,560
------------ ------------ ------------
Dividends and distributions to shareholders:
From net investment income and net realized gain on
foreign currency transactions:
Institutional Class................................... -- -- (2,785,467)
Institutional Service Class........................... -- -- (12,219)
From net realized gain on investments:
Institutional Class................................... (6,179,521) -- --
Institutional Service Class........................... (21,784) -- --
In excess of net investment income:
Institutional Class................................... -- (397,399) (1,254,408)
Institutional Service Class........................... -- (1,740) (5,503)
------------ ------------ ------------
Total dividends and distributions to shareholders... (6,201,305) (399,139) (4,057,597)
------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 37,807,430 18,761,908 40,302,257
Institutional Service Class........................... 15,392 115,655 44,972
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 6,178,334 397,290 4,039,873
Institutional Service Class........................... 21,782 1,740 17,705
------------ ------------ ------------
44,022,938 19,276,593 44,404,807
Cost of shares redeemed:
Institutional Class................................... (35,575,533) (21,946,803) (39,356,137)
Institutional Service Class........................... (158,025) (189,178) (105,878)
------------ ------------ ------------
Increase (decrease) in net assets derived from capital
share transactions.................................. 8,289,380 (2,859,388) 4,942,792
------------ ------------ ------------
Net increase in net assets............................ 8,612,360 12,293,812 26,923,755
NET ASSETS:
Beginning of period....................................... 153,598,843 141,305,031 114,381,276
------------ ------------ ------------
End of period............................................. $162,211,203 $153,598,843 $141,305,031
============ ============ ============
Accumulated distribution in excess of net investment
income at end of period................................. $ (22,647) $ (204,575) $ (1,496,798)
============ ============ ============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
78
<PAGE> 81
(THIS PAGE INTENTIONALLY LEFT BLANK)
79
<PAGE> 82
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 13.10 $ 12.97 $ 11.81 $ 11.72 $ 9.93 $ 9.85
-------- -------- -------- -------- -------- --------
Net investment income....... 0.02 (0.00)(b) 0.10 0.05 0.13 0.11
Net realized and unrealized
gain (loss) on
investments................ 0.80 0.80 1.30 1.31 2.12 2.11
Net realized and unrealized
gain (loss) on foreign
currency transactions...... (0.22) (0.22) (0.08) (0.08) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.60 0.58 1.32 1.28 2.22 2.19
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
From net investment income
and net realized gain on
foreign currency
transactions............... -- -- -- -- (0.24) (0.22)
From net realized gain on
investments................ (0.53) (0.53) -- -- -- --
In excess of net investment
income..................... -- -- (0.03) (0.03) (0.10) (0.10)
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.............. (0.53) (0.53) (0.03) (0.03) (0.34) (0.32)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period..................... $ 13.17 $ 13.02 $ 13.10 $ 12.97 $ 11.81 $ 11.72
======== ======== ======== ======== ======== ========
Total investment return..... 4.25%(c) 4.13%(c) 11.23%(c) 10.96%(c) 22.41% 22.20%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 0.22%+ (0.03%)+ 1.00%+ 0.75%+ 1.14% 0.89%
Net expenses............... 1.01%+ 1.26%+ 1.01%+ 1.26%+ 1.00% 1.25%
Expenses (before
reimbursement)........... 1.01%+ 1.26%+ 1.01%+ 1.26%+ 1.03% 1.28%
Portfolio turnover rate..... 23% 23% 35% 35% 51% 51%
Net assets at end of period
(in 000's)................. $161,653 $ 558 $152,928 $ 671 $140,630 $ 675
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Commencement of operations.
(b) Less than one cent per share.
(c) Total return is not annualized.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
80
<PAGE> 83
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31 JANUARY 1, 1995(a)
------------------------------------------------------------- THROUGH
1997 1996 DECEMBER 31, 1995
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10.63 $ 10.58 $ 10.35 $ 10.33 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
1.14 1.11 0.64 0.62 0.36 0.35
(0.10) (0.10) 0.09 0.09 0.17 0.16
(0.49) (0.52) 0.51 0.48 0.18 0.17
-------- -------- -------- -------- -------- --------
0.55 0.49 1.24 1.19 0.71 0.68
-------- -------- -------- -------- -------- --------
(0.96) (0.93) (0.84) (0.82) (0.10) (0.09)
(0.29) (0.29) (0.12) (0.12) (0.26) (0.26)
-- -- -- -- (0.00)(b) (0.00)(b)
-------- -------- -------- -------- -------- --------
(1.25) (1.22) (0.96) (0.94) (0.36) (0.35)
-------- -------- -------- -------- -------- --------
$ 9.93 $ 9.85 $ 10.63 $ 10.58 $ 10.35 $ 10.33
======== ======== ======== ======== ======== ========
5.44% 4.88% 12.09% 11.59% 7.17% 6.86%
1.23% 0.98% 0.83% 0.58% 1.05% 0.80%
1.00% 1.25% 1.00% 1.25% 1.00% 1.25%
1.04% 1.29% 1.07% 1.32% 1.07% 1.32%
37% 37% 23% 23% 26% 26%
$113,774 $ 607 $126,280 $ 725 $ 96,714 $ 213
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
81
<PAGE> 84
EAFE INDEX FUND
--------------------------------------------------------------------------------
For the six months ended April 30, 2000, U.S. monetary policy and the advance of
technology were among the most influential factors affecting the performance of
the Morgan Stanley Capital International EAFE Index.(1) The favorable response
to Federal Reserve tightening in the fall of 1999 led to a strong rally across
the board in late 1999. Early in 2000, however, fears of additional rate hikes
led to selling pressure on the majority of the stock markets represented in the
EAFE Index.
Telecommunications and technology-related stocks continued to advance early in
the reporting period, but suffered from extreme volatility and generally
dampened returns in most EAFE countries during March and April 2000.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional EAFE Index Fund
returned 5.85% for Institutional Class shares and 5.80% for Service Class
shares. Both share classes underperformed the 14.17% return of the average
Lipper(2) international fund and the 6.72% return for the MSCI EAFE Index over
the same period. Investors should expect the Fund to lag the Index somewhat,
since the Fund faces real-world fees and expenses that a hypothetical index does
not.
The Fund underperformed other international funds because it seeks to match the
country allocations of the MSCI EAFE Index, regardless of the relative
performance of individual countries. Other international funds may reallocate
assets to take advantage of markets or sectors that are showing strong relative
performance.
BEST AND WORST PERFORMERS
During the Fund's fiscal semiannual period, the top-performing markets in the
MSCI EAFE Index were Finland (+76.9%), Sweden (+42.5%), Italy (+19.8%), Hong
Kong (+16.7%), and Germany (+16.0%), all in U.S. dollar terms. The stock markets
in these countries were led by "new economy" stocks such as Nokia Oyj and
Ericsson, both of which returned more than 100% for the six months ended April
30, 2000. Throughout the reporting period, technology-related issues continued
to diverge from more traditional "old economy" stocks.
The worst-performing countries for the period were Belgium (-21.2%), Austria
(-13.4%), Switzerland (-8.4%), New Zealand (-7.7%), and the U.K. (-4.6%), all in
U.S. dollar terms. Stocks in these countries suffered from ongoing fears over
continued rate hikes by the U.S. Federal Reserve and the struggling financial
sector in Europe.
LOOKING AHEAD
The actions of the Federal Reserve in the United States will continue to have a
major impact on the nations that make up the MSCI EAFE Index. Any uncertainty
over the size and timing of rate hikes will most likely continue to negatively
impact the markets, with a dampening effect on returns. How markets digest and
interpret Federal Reserve actions and the potential impact of such actions on
inflation and global economic growth will help set the direction for inter-
national markets as a whole during the next six months.
Whatever happens in the global economy, the Fund will continue to seek to
provide investment results that correspond to the total-return performance
(reflecting reinvestment of dividends) of common stocks in the aggregate, as
represented by the Morgan Stanley Capital International Europe, Australasia, and
Far East Index.
JEFFERSON C. BOYCE
STEPHEN B. KILLIAN
Portfolio Managers
Monitor Capital Advisors LLC
--------------------------------------------------------------------------------
(1) The Morgan Stanley Capital International Europe, Australasia, Far East
Index--The EAFE Index--is an unmanaged index generally considered to be
representative of the international stock market. Returns assume the
reinvestment of all dividend and capital gain distributions. An investment
cannot be made directly into an index.
(2) Lipper Inc. is an independent fund performance monitor. Its rankings are
based on total returns with capital gains and dividends reinvested.
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. Investments in foreign securities may be subject to greater risks
than domestic investments. These risks include currency fluctuations, changes in
U.S. or foreign tax or currency laws, and changes in monetary policies and
economic and political conditions in foreign countries.
82
<PAGE> 85
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
EAFE INDEX FUND VS MSCI EAFE INDEX
INSTITUTIONAL CLASS SHARES
[Institutional Class Shares Graph]
<TABLE>
<CAPTION>
MSCI EAFE INDEX EAFE INDEX FUND
--------------- ---------------
<S> <C> <C>
1/2/91 $ 250,000 $ 250,000
91 280,302 275,250
92 246,168 241,615
93 326,316 311,610
94 351,726 332,886
95 391,158 362,938
96 414,781 386,330
97 422,170 387,876
98 506,603 462,137
99 643,226 583,321
00 as of 4/30/00 608,749 549,402
</TABLE>
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
EAFE INDEX FUND VS MSCI EAFE INDEX
SERVICE CLASS SHARES
[Service Class Shares Graph]
<TABLE>
<CAPTION>
MSCI EAFE INDEX SERVICE CLASS SHARES
--------------- --------------------
<S> <C> <C>
1/2/91 $ 250,000 $ 250,000
91 280,302 275,250
92 246,168 241,615
93 326,316 311,610
94 351,726 332,886
95 391,158 362,938
96 414,781 384,641
97 422,170 384,936
98 506,603 457,403
99 643,226 576,151
00 as of 4/30/00 608,749 542,417
</TABLE>
Source: Lipper Inc.
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SIX-MONTH PERIOD
ONE YEAR FIVE YEARS SINCE INCEPTION
--------------------------------------------------------------------------------------------------------
EAFE Index Fund Institutional Class 5.85% 12.02% 9.50% 8.80%
EAFE Index Fund Service Class(+) 5.80 11.81 9.21 8.65
Average Lipper international fund(++) 14.17 24.75 13.15 11.37
MSCI EAFE Index(sec.) 6.72 13.89 10.36 10.00
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
Year end
December 31,
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10.1% -12.22% 28.97% 6.83% 9.03% 6.45% 0.40% 19.15% 12.31%
<CAPTION>
Ten Six
months months
ended ended
October 31, April 30
1991 2000
---- ----
<S> <C>
10.1% 5.85%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
* Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized
basis of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public
on 1/1/95, include the historical performance of the Institutional Class
from the Fund's inception (1/2/91) up to 12/31/94. Performance figures
for these two classes after this date will vary based on differences in
their expense structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Morgan Stanley Capital International Europe, Australasia, Far East
Index--The EAFE Index--is an unmanaged index generally considered to be
representative of the international stock market. Results assume the
reinvestment of all dividend and capital gain distributions. An
investment cannot be made directly into an index.
83
<PAGE> 86
EAFE INDEX FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
------------
<TABLE>
<CAPTION>
COMMON STOCKS (91.9%)+
SHARES VALUE
-----------------------
<S> <C> <C>
AUSTRALIA (1.8%)
AMP, Ltd. (insurance).......... 15,056 $ 131,777
Boral, Ltd. (building materials
& components)................. 7,948 9,275
Brambles Industries, Ltd.
(business & public
services)..................... 3,133 88,115
Broken Hill Proprietary Co.,
Ltd. (energy sources)......... 16,889 181,721
Coles Myer, Ltd.
(merchandising)............... 14,858 55,590
Lend Lease Corp., Ltd. (real
estate)....................... 7,023 76,041
National Australia Bank, Ltd.
(banking)..................... 11,323 154,999
News Corp., Ltd. (The)
(broadcasting & publishing)... 19,650 249,334
Pacific Dunlop, Ltd. (multi-
industry)..................... 19,118 16,064
Pioneer International, Ltd.
(building materials &
components)................... 11,538 32,316
Origin Energy, Ltd. (energy
sources)...................... 7,948 5,936
Rio Tinto, Ltd. (metals-
nonferrous)................... 4,034 59,874
Smith (Howard), Ltd. (multi-
industry)..................... 2,670 13,866
Telstra Corp., Ltd.
(telecommunications).......... 45,208 193,621
Westpac Banking Corp., Ltd.
(banking)..................... 19,507 124,409
WMC, Ltd. (metals-nonferrous).. 15,938 66,122
-----------
1,459,060
-----------
AUSTRIA (0.1%)
Bank Austria AG (banking)...... 1,579 70,221
Flughafen Wien AG (business &
public services).............. 293 9,415
Generali Holding Vienna AG
(insurance)................... 107 15,601
-----------
95,237
-----------
BELGIUM (0.6%)
Electrabel, S.A. (utilities-
electrical & gas)............. 451 109,284
Fortis AG (insurance).......... 6,905 174,744
Fortis AG CVG (insurance)...... 700 4,784
Fortis AG Strip (insurance)
(c)........................... 6,300 57
KBC Bancassurance Holding N.V.
(banking)..................... 3,355 123,520
Petrofina, S.A. (energy
source)....................... 1 456
Tractebel, S.A. (utilities-
electrical & gas)............. 667 84,490
-----------
497,335
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
DENMARK (0.8%)
Dampskibsselskabet AF 1912
Class B (transportation-
shipping)..................... 15 $ 151,256
Dampskibsselskabet Svendborg AS
Class B (transportation-
shipping)..................... 10 138,728
Den Danske Bank Group
(banking)..................... 689 68,635
FLS Industries AS Class B
(machinery & engineering)..... 435 7,869
Novo Nordisk AS Class B (health
& personal care).............. 965 129,744
Tele Danmark AS Class B
(telecommunications).......... 2,300 168,673
-----------
664,905
-----------
FINLAND (3.8%)
Kesko Oyj Class B (wholesale &
international trade).......... 1,300 14,216
Kone Oyj Corp. Class B
(machinery & engineering)..... 522 29,969
Metra Oyj Class B (multi-
industry)..................... 539 8,792
Nokia Oyj Class A (electrical &
electronics).................. 47,296 2,719,672
Pohjola Group Insurance Corp.
Class B (insurance)........... 329 16,400
Sanitec Oyj (building materials
& components)................. 50 582
Sonera Oyj
(telecommunications).......... 5,200 286,696
-----------
3,076,327
-----------
FRANCE (9.6%)
Accor, S.A. (leisure &
tourism)...................... 2,525 93,997
Air Liquide, S.A.
(chemicals)................... 1,139 148,638
Alcatel, S.A. (electrical &
electronics).................. 1,456 338,349
Aventis, S.A. (health &
personal care)................ 4,635 255,545
AXA, S.A. (insurance).......... 2,387 354,788
Banque Nationale de Paris, S.A.
(banking)..................... 3,777 305,993
Bouygues, S.A. (construction &
housing)...................... 262 167,610
Canal Plus, S.A. (broadcasting
& publishing)................. 1,086 209,811
Cap Gemini, S.A. (business &
public services).............. 791 155,702
Carrefour, S.A.
(merchandising)............... 7,288 475,537
Compagnie de Saint Gobain, S.A.
(building materials &
components)................... 843 115,311
Compagnie Generale de
Geophysique, S.A. (energy
equipment & services) (a)..... 71 4,141
</TABLE>
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
84
<PAGE> 87
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
FRANCE (CONTINUED)
Elf Aquitaine, S.A. (energy
sources)....................... 3 $ 539
Establissements Economiques du
Casino Guichard-Perrachon,
S.A. (merchandising).......... 1,045 95,612
France Telecom, S.A.
(telecommunications).......... 7,747 1,201,589
Groupe Danone, S.A. (food &
household products)........... 432 94,681
Lafarge, S.A. (building
materials & components)....... 1,237 102,695
L'Oreal, S.A. (health &
personal care)................ 375 254,937
LVMH (Louis Vuitton Moet
Hennessy), S.A. (recreation &
other consumer goods)......... 780 328,113
Michelin (CGDE), S.A. Class B
(industrial components)....... 2,173 72,279
Pinault-Printemps-Redoute, S.A.
(merchandising)............... 869 175,728
PSA Peugeot, S.A.
(automobiles)................. 628 130,255
Sanofi Synthelabo, S.A. (health
& personal care).............. 5,980 223,706
Schneider Electric, S.A.
(electrical & electronics).... 1,718 112,724
Societe Generale, S.A. Class A
(banking)..................... 840 174,380
STMicroelectronics N.V.
(electronic components &
instruments).................. 2,379 455,061
Suez Lyonnaise des Eaux, S.A.
(business & public
services)..................... 1,576 247,747
Suez Lyonnaise des Eaux, S.A.
Strip VVPR (business & public
services) (c)................. 204 2
Total Fina Elf, S.A. Class B
(energy sources).............. 5,738 872,730
Total Fina Elf, S.A. Strip
(energy sources) (c).......... 1,692 15
Valeo, S.A. (industrial
components)................... 1,153 64,095
Vivendi, S.A. (business &
public services).............. 4,659 461,939
-----------
7,694,249
-----------
GERMANY (8.0%)
Adidas-Salomon AG (recreation &
other consumer goods)......... 650 40,990
AGIV AG (multi-industry)....... 904 16,888
Allianz AG Registered
(insurance)................... 1,506 581,221
AMB Aachener & Muenchener
Beteiligungs AG (insurance)... 550 35,185
BASF AG (chemicals)............ 5,584 241,969
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
GERMANY (CONTINUED)
Bayer AG (chemicals)........... 6,417 $ 266,369
Bayerische Hypo-und Vereinsbank
AG (banking).................. 3,149 195,426
Beiersdorf AG (health &
personal care)................ 1,196 77,929
DaimlerChrysler AG
(automobiles)................. 7,835 456,964
Deutsche Bank AG (banking)..... 4,500 303,054
Deutsche Lufthansa AG
Registered (transportation-
airlines)..................... 5,300 110,846
Deutsche Telekom AG
(telecommunications).......... 22,900 1,471,253
Dresdner Bank AG (banking)..... 3,850 159,988
Heidelberger Zement AG
(building materials &
components)................... 665 39,209
Hochtief AG (construction &
housing)...................... 986 26,238
Linde AG (machinery &
engineering).................. 1,700 65,532
Merck KGaA (health & personal
care)......................... 2,100 60,474
Metro AG (merchandising)....... 2,350 89,410
Munchener Ruckversicherungs-
Gesellschaf AG Registered
(insurance)................... 1,308 382,627
Preussag AG (multi-industry)... 2,350 97,227
RWE AG (utilities-electrical &
gas).......................... 3,339 107,717
SAP AG (business & public
services)..................... 500 235,116
Schering AG (health & personal
care)......................... 950 134,622
Siemens AG (electrical &
electronics).................. 4,258 629,777
Strabag AG (construction &
housing) (a).................. 216 7,187
Thyssen Krupp AG (metals-
steel)........................ 5,700 119,472
Veba AG (utilities-electrical &
gas).......................... 3,529 174,789
Viag AG (utilities-electrical &
gas).......................... 7,644 147,679
Volkswagen AG (automobiles).... 2,950 111,163
-----------
6,386,321
-----------
HONG KONG (2.1%)
Cable & Wireless HKT, Ltd.
(telecommunications).......... 104,458 246,085
Cathay Pacific Airways, Ltd.
(transportation-airlines)..... 40,409 72,889
Cheung Kong (Holdings), Ltd.
(real estate)................. 18,000 214,913
Chinese Estates Holdings, Ltd.
(real estate)................. 68,854 9,724
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
85
<PAGE> 88
EAFE INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
HONG KONG (CONTINUED)
CLP Holdings, Ltd. (utilities-
electrical & gas).............. 17,932 $ 80,345
Hang Lung Development Co., Ltd
(real estate)................. 18,946 14,716
Hang Seng Bank, Ltd.
(banking)..................... 14,830 136,606
Hong Kong & China Gas Co., Ltd.
(utilities-electrical & gas).. 45,652 50,111
Hopewell Holdings, Ltd. (multi-
industry)..................... 18,706 8,646
Hutchinson Whampoa, Ltd.
(multi-industry).............. 30,381 442,696
Miramar Hotel & Investment,
Ltd. (real estate)............ 31,028 21,511
New World Development Co., Ltd.
(real estate)................. 29,772 40,133
Shangri-La Asia, Ltd. (leisure
& tourism).................... 25,464 28,278
Sun Hung Kai Properties, Ltd.
(real estate)................. 20,000 158,553
Swire Pacific, Ltd. Class A
(multi-industry).............. 21,885 123,625
-----------
1,648,831
-----------
IRELAND (0.1%)
Allied Irish Banks PLC
(banking)..................... 2,600 26,016
Irish Life & Permanent PLC
(insurance)................... 4,199 34,822
-----------
60,838
-----------
ITALY (3.7%)
Assicurazioni Generali S.p.A.
(insurance)................... 7,400 211,076
Banca Commerciale Italiana
S.p.A. (banking).............. 17,720 83,971
Beni Stabili S.p.A (real
estate)....................... 11,135 5,530
Bulgari S.p.A. (recreation &
other consumer goods)......... 5,548 60,671
Cementir S.p.A. (building
materials & components)....... 4,510 5,425
Edison S.p.A. (utilities-
electrical & gas)............. 9,000 83,904
Enel S.p.A.
(utilities-electrical &
gas).......................... 29,870 126,848
ENI S.p.A. (energy sources).... 64,148 319,767
Fiat S.p.A. (automobiles)...... 3,356 82,483
Istituto Nazionale delle
Assicurazioni S.p.A.
(insurance)................... 46,198 99,357
Magneti Marelli S.p.A.
(industrial components)....... 8,000 30,110
Mediaset S.p.A. (broadcasting &
publishing)................... 16,500 268,402
Mediobanca S.p.A. (banking).... 5,223 43,409
Olivetti S.p.A.
(telecommunications).......... 47,500 157,564
Pirelli S.p.A. (industrial
components)................... 26,468 63,557
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
ITALY (CONTINUED)
San Paolo-IMI S.p.A.
(banking)..................... 11,135 $ 156,269
Snia S.p.A. (multi-industry)... 9,873 9,186
Telecom Italia S.p.A.
(telecommunications).......... 31,420 440,378
Telecom Italia Mobile S.p.A.
(telecommunications).......... 57,996 554,945
Unicredito Italiano S.p.A.
(banking)..................... 37,119 150,867
-----------
2,953,719
-----------
JAPAN (25.4%)
Acom Co., Ltd. (financial
services)..................... 1,400 134,853
Ajinomoto Co., Inc. (food &
household products)........... 6,567 75,044
Arabian Oil Co., Ltd. (energy
sources)...................... 1,387 4,877
Asahi Bank, Ltd. (banking)..... 21,986 105,787
Asahi Breweries, Ltd.
(beverages & tobacco)......... 7,098 72,245
Asahi Chemical Industry Co.,
Ltd. (chemicals).............. 20,649 118,842
Asahi Glass Co., Ltd.
(miscellaneous-materials &
commodities).................. 17,000 149,121
Ashikaga Bank, Ltd. (banking).. 3,043 5,913
Bank of Tokyo-Mitsubishi, Ltd.
(banking) (d)................. 33,375 430,493
Bank of Yokohama, Ltd.
(banking)..................... 11,000 42,138
Bridgestone Corp. (industrial
components)................... 6,935 150,478
Brother Industries, Ltd.
(appliances & household
durables)..................... 6,601 15,575
Canon, Inc. (data processing &
reproduction)................. 8,288 378,843
Chiba Bank, Ltd. (banking)..... 11,600 46,261
Chiyoda Corp. (machinery &
engineering) (a).............. 6,000 6,884
Chugai Pharmaceutical Co., Ltd.
(health & personal care)...... 2,974 57,238
Chuo Mitsui Trust and Banking
Co. (banking)................. 6,300 28,993
Citizen Watch Co., Ltd.
(recreation & other consumer
goods)........................ 3,678 27,566
Dai Nippon Printing Co., Ltd.
(business & public
services)..................... 9,133 154,902
Daiei, Inc. (merchandising)
(a)........................... 11,467 33,953
Daikin Industries, Ltd.
(machinery & engineering)..... 4,000 76,060
Dainippon Ink & Chemical, Inc.
(chemicals)................... 11,203 46,026
Daiwa House Industry Co., Ltd.
(construction & housing)...... 6,667 44,417
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
86
<PAGE> 89
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
JAPAN (CONTINUED)
Daiwa Securities Group Inc.
(financial services)........... 11,287 $ 172,324
Denso Corp. (industrial
components) (d)............... 8,331 203,894
East Japan Railway Co.
(transportation-road &
rail)......................... 41 242,799
Ebara Corp. (machinery &
engineering).................. 3,660 42,299
Eisai Co., Ltd. (health &
personal care)................ 3,677 107,173
Fanuc, Ltd. (electronic
components & instruments)..... 2,723 285,218
Fuji Bank, Ltd. (banking)
(d)........................... 26,432 220,118
Fuji Photo Film, Ltd.
(recreation & other consumer
goods) (d).................... 5,394 216,113
Fujitsu, Ltd. (data processing
& reproduction)............... 15,107 427,742
Furukawa Electric Co., Ltd.
(industrial components)....... 11,558 160,312
Gunma Bank, Ltd. (banking)..... 6,766 33,932
Hitachi, Ltd. (electrical &
electronics) (d).............. 27,857 332,511
Hitachi Zosen Corp. (machinery
& engineering)................ 19,634 13,625
Hokuriku Bank, Ltd. (banking)
(a)........................... 15,952 35,425
Honda Motor Co., Ltd.
(automobiles) (d)............. 8,345 372,955
Industrial Bank of Japan, Ltd.
(The) (banking)............... 18,283 150,564
Ito-Yokado Co., Ltd.
(merchandising)............... 3,375 246,396
Japan Airlines Co., Ltd.
(transportation-airlines)..... 21,138 65,718
Japan Energy Corp. (energy
sources)...................... 15,637 13,456
Japan Steel Works, Ltd.
(machinery & engineering)
(a)........................... 5,176 4,502
Joyo Bank, Ltd. (banking)...... 13,550 48,396
Jusco Co., Ltd.
(merchandising)............... 4,000 74,024
Kajima Corp. (construction &
housing)...................... 12,910 29,983
Kamigumi Co., Ltd. (business &
public services).............. 3,456 15,062
Kansai Electric Power Co., Inc.
(utilities-electrical &
gas).......................... 5,528 86,956
Kao Corp. (food & household
products)..................... 6,000 182,654
Kawasaki Heavy Industries, Ltd.
(machinery & engineering)..... 19,050 21,329
Kawasaki Steel Corp. (metals-
steel)........................ 39,815 61,893
Keihin Electric Express Railway
(transportation-road &
rail)......................... 3,000 10,271
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
JAPAN (CONTINUED)
Kinki Nippon Railway Co., Ltd.
(transportation-road &
rail)......................... 22,124 $ 83,523
Kirin Brewery Co., Ltd.
(beverages & tobacco)......... 12,154 158,232
Komatsu, Ltd. (machinery &
engineering).................. 12,162 58,518
Kubota Corp. (machinery &
engineering).................. 17,806 57,995
Kumagai Gumi Co., Ltd.
(construction & housing) (a).. 9,812 5,175
Kyocera Corp. (electronic
components & instruments)..... 2,190 366,172
Kyowa Hakko Kogyo (health &
personal care)................ 4,234 40,548
Makita Corp. (electrical &
electronics).................. 2,448 21,247
Marubeni Corp. (wholesale &
international trade).......... 20,723 60,018
Marui Co., Ltd.
(merchandising)............... 5,378 101,018
Matsushita Electric Industrial
Co., Ltd. (appliances &
household durables)........... 14,247 377,027
Mitsubishi Chemical Corp.
(chemicals)................... 25,833 103,501
Mitsubishi Corp. (wholesale &
international trade).......... 12,531 108,992
Mitsubishi Electric Corp.
(electrical & electronics).... 25,000 213,513
Mitsubishi Estate Co., Ltd.
(real estate)................. 12,191 137,056
Mitsubishi Heavy Industries,
Ltd. (machinery &
engineering).................. 35,059 108,999
Mitsubishi Trust & Banking
Corp. (banking)............... 11,031 92,577
Mitsui & Co., Ltd. (wholesale &
international trade).......... 14,822 109,856
Mitsui Fudosan Co., Ltd. (real
estate)....................... 11,129 113,068
Mitsui Marine & Fire Insurance
Co., Ltd. (insurance)......... 8,359 36,739
Mitsui O.S.K. Lines, Ltd.
(transportation-shipping)..... 12,266 22,813
Mitsukoshi, Ltd.
(merchandising) (a)........... 6,758 27,577
Murata Manufacturing Co., Ltd.
(electronic components &
instruments).................. 2,000 388,626
NEC Corp. (electrical &
electronics).................. 14,416 392,170
NGK Insulators, Ltd.
(industrial components)....... 4,800 44,192
Niigata Engineering Co., Ltd.
(machinery & engineering)..... 11,000 8,346
Nikon Corp. (electronic
components & instruments)..... 5,407 190,118
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
87
<PAGE> 90
EAFE INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
JAPAN (CONTINUED)
Nintendo Co., Ltd.
(recreational & other consumer
goods)......................... 1,000 $ 166,554
Nippon Express Co., Ltd.
(transportation-road &
rail)......................... 14,446 91,162
Nippon Fire & Marine Insurance,
Ltd. (insurance).............. 9,686 26,439
Nippon Light Metal Co., Ltd.
(metals-nonferrous)........... 7,577 5,118
Nippon Meat Packers, Inc. (food
& household products)......... 3,357 42,400
Nippon Mitsubishi Oil Corp.
(energy sources).............. 20,136 69,683
Nippon Steel Corp. (metals-
steel)........................ 59,313 133,364
Nippon Telegraph & Telephone
Corp. (telecommunications).... 93 1,153,109
Nissan Motor Co., Ltd.
(automobiles)................. 32,121 145,933
Nisshinbo Industries, Inc.
(textile & apparel)........... 3,363 15,341
Nissin Food Products Co., Ltd.
(food & household products)... 1,384 31,759
NKK Corp. (metals-steel)....... 35,919 21,936
Nomura Securities Co., Ltd.
(financial services).......... 13,955 351,222
Obayashi Corp. (construction &
housing)...................... 10,799 37,571
Oji Paper Co., Ltd. (forest
products & paper)............. 14,490 90,903
Olympus Optical Co., Ltd.
(electronic components &
instruments).................. 4,000 65,585
Orient Corp. (financial
services)..................... 4,483 18,376
Osaka Gas Co. (utilities-
electrical & gas)............. 23,126 63,126
Penta-Ocean Construction Co.,
Ltd. (construction &
housing)...................... 10,000 11,289
Pioneer Electronic Corp.
(appliances & household
durables)..................... 2,078 56,722
Rohm Co., Ltd. (electronic
components & instruments)..... 1,000 334,959
Sakura Bank, Ltd. (banking).... 30,834 216,263
Sankyo Co., Ltd. (health &
personal care)................ 4,654 102,491
Sanrio Co., Ltd. (recreation &
other consumer goods)......... 861 28,123
Sanyo Electric Co., Ltd.
(appliances & household
durables)..................... 23,684 158,006
Sapporo Breweries, Ltd.
(beverages & tobacco)......... 5,692 21,015
Sato Kogyo Co., Ltd.
(construction & housing)...... 12,000 6,773
Secom Co., Ltd. (business &
public services).............. 2,000 167,664
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
JAPAN (CONTINUED)
Sekisui House, Ltd.
(construction & housing)...... 10,000 $ 91,605
Sharp Corp. (appliances &
household durables)........... 9,279 179,015
Shimizu Corp. (construction &
housing)...................... 11,055 29,869
Shin-Etsu Chemical Co., Ltd.
(chemicals)................... 4,830 255,191
Shionogi & Co., Ltd. (health &
personal care)................ 5,396 83,382
Shiseido Co., Ltd. (health &
personal care)................ 5,739 72,539
Shizuoka Bank, Ltd. (banking).. 9,494 87,848
SMC Corp. (machinery &
engineering).................. 900 179,046
Softbank Corp. (business &
public services).............. 2,400 592,192
Sony Corp. (appliances &
household durables)........... 6,282 723,976
Sumitomo Bank, Ltd. (banking)
(d)........................... 22,242 278,043
Sumitomo Chemical Co., Ltd.
(chemicals)................... 19,403 96,590
Sumitomo Corp. (wholesale &
international trade).......... 11,864 132,831
Sumitomo Electric Industries
(industrial components)....... 9,982 132,911
Sumitomo Marine & Fire
Insurance Co., Ltd.
(insurance)................... 8,126 42,858
Sumitomo Metal Industries, Ltd.
(metals-steel) (a)............ 50,343 32,608
Sumitomo Metal Mining Co.
(metals-nonferrous)........... 11,298 34,603
Taiheiyo Cement Corp. (building
materials & components)....... 12,783 18,215
Taisei Corp. (construction &
housing)...................... 13,713 19,160
Taisho Pharmaceutical Co., Ltd.
(health & personal care)...... 4,066 136,194
Taiyo Yuden Co., Ltd.
(electronic components &
instruments).................. 2,127 150,561
Takashimaya Co., Ltd.
(merchandising)............... 4,574 35,763
Takeda Chemical Industries,
Ltd. (health & personal
care)......................... 7,318 481,443
Teikoku Oil Co., Ltd. (energy
sources)...................... 6,646 18,326
Tobu Railway Co., Ltd.
(transportation-road &
rail)......................... 12,000 31,756
Tohoku Electric Power Co., Inc.
(utilities-electrical &
gas).......................... 6,968 82,141
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
88
<PAGE> 91
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
JAPAN (CONTINUED)
Tokai Bank, Ltd. (banking)..... 16,989 $ 88,346
Tokio Marine & Fire Insurance
Co., Ltd. (insurance)......... 11,540 112,546
Tokyo Electric Power Co., Inc.
(utilities-electrical &
gas).......................... 8,451 199,403
Tokyo Electron, Ltd.
(electronic components &
instruments).................. 2,192 357,176
Tokyo Gas Co. (utilities-
electrical & gas)............. 36,091 79,480
Tokyo Steel Manufacturing Co.,
Ltd. (metals-steel)........... 2,194 5,502
Tokyu Corp. (transportation-
road & rail).................. 15,451 60,618
Toppan Printing Co., Ltd.
(business & public
services)..................... 9,076 94,898
Toray Industries, Inc.
(chemicals)................... 20,000 72,544
Toshiba Corp. (electrical &
electronics).................. 10,000 96,971
Tostem Corp. (building
materials & components)....... 2,935 43,208
Toto, Ltd. (building materials
& components)................. 5,467 33,539
Toyo Seikan Kaisha, Ltd.
(miscellaneous-materials &
commodities).................. 3,445 60,884
Toyoda Automatic Loom Works,
Ltd. (machinery &
engineering).................. 4,000 79,206
Toyota Motor Corp.
(automobiles) (d)............. 28,152 1,398,834
Ube Industries, Ltd.
(miscellaneous-materials &
commodities).................. 11,768 25,589
Uny Co., Ltd.
(merchandising)............... 2,346 24,747
Yamaha Corp. (recreation &
other consumer goods)......... 4,188 28,366
Yamanouchi Pharmaceutical Co.,
Ltd. (health & personal
care)......................... 4,000 211,339
-----------
20,236,517
-----------
MALAYSIA (0.0%) (b)
Malaysia International Shipping
Corp. Berhad Foreign
Registered (transportation-
shipping) (f)................. 14,236 15,999
Malaysian Airline System Berhad
(transportation-airlines)
(f)........................... 856 0
Metroplex Berhad (real estate)
(f)........................... 434 0
Sime Darby Berhad (multi-
industry) (f)................. 464 0
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
MALAYSIA (CONTINUED)
Technology Resources Industries
Berhad (telecommunications)
(f)........................... 18,409 $ 0
-----------
15,999
-----------
NETHERLANDS (4.8%)
ABN AMRO Holding N.V.
(banking)..................... 10,306 212,726
Aegon N.V. (insurance)......... 4,979 358,680
Akzo Nobel N.V. (chemicals).... 3,484 142,969
Elsevier N.V. (broadcasting &
publishing)................... 9,310 90,781
Heineken N.V. (beverages &
tobacco)...................... 4,292 238,590
ING Groep N.V. (financial
services)..................... 7,014 383,641
Koninklijke Ahold N.V.
(merchandising)............... 6,297 147,192
Koninklijke KPN N.V.
(telecommunications).......... 4,600 464,683
Koninklijke Nedlloyd Groep N.V.
(transportation-road &
rail)......................... 319 6,759
Koninklijke (Royal) Philips
Electronics N.V. (appliances &
household durables)........... 11,136 497,976
Koninklijke Vopak N.V. (energy
equipment & service).......... 921 23,039
Royal Dutch Petroleum Co.
(energy sources).............. 16,480 952,158
TNT Post Group N.V. (business &
public services).............. 4,812 105,244
Unilever CVA N.V. (food &
household products)........... 4,366 198,778
-----------
3,823,216
-----------
NEW ZEALAND (0.2%)
Carter Holt Harvey Ltd. (forest
products & paper)............. 21,197 17,932
Fletcher Challenge Energy
(energy sources).............. 2,375 5,485
Fletcher Challenge Forests
(forest products & paper)..... 20,290 7,399
Telecom Corp. of New Zealand
Ltd. (telecommunications)..... 24,470 103,506
-----------
134,322
-----------
NORWAY (0.3%)
Christiania Bank Og Kreditkasse
(banking)..................... 7,653 35,412
Elkem ASA Class A (metals-
nonferrous)................... 733 11,634
Norsk Hydro ASA (energy
sources)...................... 3,159 115,633
Orkla ASA Class A (multi-
industry)..................... 3,300 51,084
-----------
213,763
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
89
<PAGE> 92
EAFE INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
PORTUGAL (0.5%)
Banco Comercial Portugues, S.A.
Registered (banking).......... 13,745 $ 64,633
Banco Espirito Santo, S.A.
Registered (banking).......... 1,200 27,886
Cimpor-Cementos de Portugal,
SGPS, S.A. (building materials
& components)................. 1,200 17,902
Electricidade de Portugal, S.A.
(utilities-electrical &
gas).......................... 8,374 148,809
Portugal Telecom, S.A.
Registered
(telecommunications).......... 12,250 136,976
-----------
396,206
-----------
SINGAPORE (0.6%)
City Developments, Ltd. (real
estate)....................... 9,348 42,429
DBS Group Holdings, Ltd.
(banking)..................... 10,224 140,711
Sembcorp Industries, Ltd.
(multi-industry).............. 29,512 31,111
Singapore Airlines, Ltd.
Foreign Registered
(transportation-airlines)..... 7,273 75,392
Singapore Telecommunications,
Ltd. (telecommunications)..... 76,258 109,865
United Overseas Bank, Ltd.
Foreign Registered (banking).. 10,452 72,843
-----------
472,351
-----------
SPAIN (2.7%)
Altadis, S.A. (beverages &
tobacco)...................... 2,572 30,306
Autopistas Concesionaria
Espanola, S.A. (business &
public services).............. 2,800 24,751
Banco Bilbao Vizcaya
Argentaria, S.A. Registered
(banking)..................... 29,663 405,480
Banco Santander Central
Hispano, S.A. (banking)....... 30,300 316,715
Endesa, S.A. (utilities-
electrical & gas)............. 9,753 212,066
Gas Natural SDG, S.A.
(utilities-electrical &
gas).......................... 4,638 77,685
Grupo Empresarial Ence, S.A.
(forest products & paper)..... 296 5,503
Iberdrola, S.A. (utilities-
electrical & gas)............. 10,181 130,912
Repsol, S.A. (energy
sources)...................... 12,559 257,514
Telefonica, S.A.
(telecommunications) (a)...... 30,042 670,198
-----------
2,131,130
-----------
SWEDEN (3.5%)
ABB AB (electrical &
electronics) (g).............. 6,380 81,237
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
SWEDEN (CONTINUED)
AstraZeneca Group PLC (health &
personal care)................ 7,583 $ 317,192
Drott AB Series B (real
estate)....................... 1,000 8,936
Electrolux AB Series B
(appliances & household
durables)..................... 5,100 86,300
ForeningsSparbanken AB
(banking)..................... 6,100 89,936
Hennes & Mauritz AB Series B
(merchandising)............... 7,200 191,399
Mandamus AB (real estate)...... 130 726
NetCom AB Series B
(telecommunications).......... 1,500 106,724
Skandia Forsakrings AB
(insurance)................... 5,300 253,959
Skanska AB Series B
(construction & housing)...... 1,600 58,438
Svenska Cellulosa AB Series B
(forest products & paper)..... 2,750 52,217
Svenska Handelsbanken Series A
(banking)..................... 6,300 83,385
Swedish Match AB (beverages &
tobacco)...................... 5,983 17,843
Telefonaktiebolaget LM Ericsson
Series B (electrical &
electronics).................. 14,884 1,324,975
Volvo AB Series B
(automobiles)................. 4,225 102,640
-----------
2,775,907
-----------
SWITZERLAND (5.2%)
ABB AG Bearer (electrical &
elelctronics)................. 2,196 246,978
Adecco, S.A. Registered
(business & public
services)..................... 200 164,487
Alusuisse Lonza Group AG
Registered (multi-industry)... 90 57,123
Credit Suisse Group Registered
(banking)..................... 2,170 392,883
Holderbank Financiere Glarus AG
Bearer (building materials &
components)................... 70 79,337
Holderbank Financiere Glarus AG
Registered (building materials
& components)................. 150 47,951
Jelmoli Holdings, Ltd. Bearer
(merchandising)............... 10 12,961
Nestle, S.A. Registered (food &
household products)........... 295 521,244
Novartis AG Registered (health
& personal care).............. 540 756,094
Roche Holdings AG Bearer
(health & personal care)...... 14 168,032
Roche Holdings AG Genusscheine
(health & personal care)...... 56 586,201
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
90
<PAGE> 93
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
SWITZERLAND (CONTINUED)
Schindler Holding AG
Participating Certificates
(machinery & engineering)...... 10 $ 14,292
Schindler Holding AG Registered
(machinery & engineering)..... 10 14,327
Schweizerische
Rueckversicherungs
Gesellschaft Registered
(insurance)................... 145 233,534
Societe Generale de
Surveillance Holding, S.A.
Bearer (business & public
services) (a)................. 15 23,365
Societe Generale de
Surveillance Holding, S.A.
Registered (business & public
services)..................... 70 24,615
Sulzer AG Registered (machinery
& engineering)................ 50 32,084
Swatch Group AG Registered
(recreation & other consumer
goods)........................ 200 45,219
Swisscom AG Registered
(telecommunications).......... 670 236,768
UBS AG Registered (banking).... 1,610 395,365
Zurich Allied AG Registered
(insurance)................... 200 85,208
-----------
4,138,068
-----------
UNITED KINGDOM (17.8%)
Abbey National PLC (banking)... 10,900 124,767
Allied Zurich PLC
(insurance)................... 14,018 139,838
Associated British Foods PLC
(food & household products)... 11,053 65,724
AstraZeneca Group PLC (health &
personal care)................ 12,237 514,901
BAA PLC (business & public
services)..................... 13,374 86,797
Barclays PLC (banking)......... 11,028 283,353
Bass PLC (leisure & tourism)... 11,114 130,608
BG PLC (utilities-electrical &
gas).......................... 26,125 156,572
Boots Co. PLC (merchandising).. 9,473 73,709
BP Amoco PLC (energy sources).. 148,309 1,286,848
British Aerospace PLC
(aerospace & military
technology)................... 28,450 175,403
British Airways PLC
(transportation-airlines)..... 12,500 65,086
British American Tobacco PLC
(beverages & tobacco)......... 20,093 122,071
British Sky Broadcasting Group
PLC (broadcasting &
publishing)................... 16,647 410,275
British Telecommunications PLC
(telecommunications).......... 48,765 878,298
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Cable & Wireless PLC
(telecommunications).......... 20,589 $ 342,473
Cadbury Schwepps PLC (beverages
& tobacco).................... 23,406 160,787
Carillion PLC (construction &
housing)...................... 1,451 2,225
Centrica PLC (utilities-
electrical & gas)............. 38,336 136,773
CGU PLC (insurance)............ 9,582 137,719
Coats Viyella PLC (textiles &
apparel)...................... 9,814 7,294
Corus Group PLC (metal-steel).. 42,984 57,845
De La Rue PLC (business &
public services).............. 1,624 7,132
Diageo PLC (beverages &
tobacco)...................... 25,516 207,423
Elementis PLC (chemicals)...... 11,290 14,133
GKN PLC (machinery &
engineering).................. 8,928 124,058
Glaxo Wellcome PLC (health &
personal care)................ 24,926 772,672
Granada Group PLC (leisure &
tourism)...................... 21,864 214,172
Great Universal Stores PLC
(The) (merchandising)......... 10,800 65,487
Halifax PLC (banking).......... 18,102 169,672
Hanson PLC (building materials
& components)................. 9,656 71,318
Hilton Group PLC (leisure &
tourism)...................... 18,213 76,807
HSBC Holdings PLC (banking).... 60,376 671,726
Imperial Chemical Industries
PLC (chemicals)............... 8,666 74,583
Invensys PLC (machinery &
engineering).................. 36,384 175,071
Kingfisher PLC
(merchandising)............... 12,822 105,486
Land Securities PLC (real
estate)....................... 7,747 93,889
LASMO PLC (energy sources)..... 22,009 37,109
Legal & General Group PLC
(insurance)................... 46,200 121,092
Lloyds TSB Group PLC
(banking)..................... 38,424 377,590
Marconi PLC
(telecommunications).......... 26,716 335,068
Marks & Spencer PLC
(merchandising)............... 23,340 85,736
National Grid Group PLC
(utilities-electrical &
gas).......................... 13,714 113,200
National Power PLC (utilities-
electrical & gas)............. 11,590 52,776
Next PLC (merchandising)....... 5,222 41,061
Pearson PLC (broadcasting &
publishing)................... 7,509 259,794
Peninsular & Oriental Steam
Navigation Co. Deferred Stock
(The) (transportation-
shipping)..................... 8,975 89,039
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
91
<PAGE> 94
EAFE INDEX FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
SHARES VALUE
-----------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Prudential Corp. PLC
(insurance).................... 14,366 $ 221,652
Racal Electronic PLC
(electrical & electronics).... 4,570 31,215
Railtrack Group PLC (business &
public services).............. 5,324 67,731
Rank Group PLC (leisure &
tourism)...................... 12,294 28,231
Rentokil Initial PLC (business
& public services)............ 30,309 83,354
Reuters Group PLC (business &
public services).............. 12,768 229,563
Rio Tinto PLC Registered
(metals-nonferrous)........... 12,392 192,940
Rolls-Royce PLC (aerospace &
military technology).......... 20,600 76,638
Royal & Sun Alliance Insurance
Group PLC (insurance)......... 12,959 72,697
Royal Bank of Scotland Group
PLC (banking)................. 7,538 117,542
Sainsbury (J.) PLC
(merchandising)............... 18,817 98,934
Scottish & Newcastle PLC
(leisure & tourism)........... 8,661 64,477
Scottish Power PLC (utilities-
electrical & gas)............. 10,298 82,868
SmithKline Beecham PLC (health
& personal care).............. 39,881 548,234
Tesco PLC (merchandising)...... 55,953 191,746
Thames Water PLC (business &
public services).............. 5,760 73,007
Unilever PLC (food & household
products)..................... 21,387 128,929
United Biscuits (Holdings) PLC
(food & household products)... 9,940 41,218
Vodafone AirTouch PLC
(telecommunications).......... 447,357 2,061,569
Williams PLC (electronic
components & instruments)..... 10,172 57,699
Wilson Connolly Holdings PLC
(construction & housing)...... 5,216 11,421
-----------
14,197,125
-----------
UNITED STATES (0.3%)
DaimlerChrysler AG
(automobiles)................. 4,177 240,439
-----------
240,439
-----------
Total Common Stocks (Cost
$53,303,494).................. 73,311,865(h)
-----------
</TABLE>
<TABLE>
<CAPTION>
PREFERRED STOCKS (0.6%)
SHARES VALUE
-----------------------
<S> <C> <C>
AUSTRALIA (0.3%)
News Corp., Ltd.
A$0.0375
(broadcasting & publishing)
(e)(l)........................ 19,878 $ 213,650
-----------
GERMANY (0.3%)
RWE AG
E 1.00
(utilities-electrical & gas)
(e)(l)........................ 1,154 30,393
SAP AG
E 1.60
(business & public services)
(e)(l)........................ 400 235,845
-----------
266,238
-----------
Total Preferred Stocks (Cost
$320,442)..................... 479,888
-----------
WARRANTS (0.0%) (b)
HONG KONG (0.0%) (b)
Chinese Estates Holdings, Ltd.
Call Warrants
Strike price HK1.02
Expire 11/24/00
(real estate) (a)(l).......... 6,885 221
-----------
Total Warrants (Cost $0)....... 221
-----------
<CAPTION>
SHORT-TERM INVESTMENTS (6.4%)
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
U.S. GOVERNMENT (6.4%)
United States Treasury Bills
5.54%, due 7/13/00 (d)........ $ 300,000 296,537
5.58%, due 7/13/00 (d)........ 600,000 593,021
5.60%, due 7/13/00 (d)........ 400,000 395,294
5.61%, due 7/13/00 (d)........ 700,000 691,813
5.67%, due 7/13/00 (d)........ 900,000 889,325
5.68%, due 7/13/00 (d)........ 1,800,000 1,778,593
5.72%, due 7/20/00 (d)........ 500,000 493,445
-----------
Total Short-Term Investments
(Cost $5,138,028)............. 5,138,028
-----------
Total Investments (Cost
$58,761,964) (i).............. 98.9% 78,930,002(j)
Cash and Other Assets,
Less Liabilities.............. 1.1 844,870
---------- -----------
Net Assets..................... 100.0% $79,774,872
========== ===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
92
<PAGE> 95
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
FUTURES CONTRACTS (0.0%) (b)
CONTRACTS UNREALIZED
LONG APPRECIATION(k)
----------------------------
<S> <C> <C>
FRANCE (0.0%) (b)
Euro, CAC 40 Index, May
2000.................... 20 $ 8,447
GERMANY (0.0%) (b)
Euro, DAX Index, June
2000.................... 7 18,339
JAPAN (0.0%) (b)
Japanese Yen, TOPIX Index,
June 2000............... 10 6,246
UNITED KINGDOM (0.0%) (b)
Pound Sterling, FTSE 100
Index, June 2000........ 13 6,515
-------
Total Futures Contracts
(Settlement Value
$5,194,845) (h)......... $39,547
=======
</TABLE>
------------
(a) Non-income producing security.
(b) Less than one tenth of a percent.
(c) Strip securities represent a secondary class of shares traded in the
foreign market.
(d) Segregated or partially segregated as collateral for futures contracts.
(e) Dividend rate shown represents the most recent annual payment.
(f) Securities deemed illiquid. Malaysian positions held or partially held in
Singapore with repatriation restrictions. These securities are fair valued
or partially fair valued.
(g) Security deemed illiquid.
(h) The combined market value of common stocks and settlement value of Index
futures contracts represents 98.4% of net assets.
(i) The cost for Federal income tax purposes is $59,395,578.
(j) At April 30, 2000 net unrealized appreciation for securities was
$19,534,424, based on cost for Federal income tax purposes. This consisted
of aggregate gross unrealized appreciation for all investments on which
there was an excess of market value over cost of $26,184,667 and aggregate
gross unrealized depreciation for all investments on which there was an
excess of cost over market value of $6,650,243.
(k) Represents the difference between the value of the contracts at the time
they were opened and the value at April 30, 2000.
(l) A$ --Australian Dollar
E --Euro Currency
HK--Hong Kong Dollar
The table below sets forth the diversification of EAFE Index Fund investments by
industry.
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
VALUE PERCENT +
-----------------------
<S> <C> <C>
Aerospace & Military
Technology................... $ 252,041 0.3%
Appliances & Household
Durables................... 2,094,596 2.6
Automobiles.................. 3,041,665 3.8
Banking...................... 8,171,485 10.2
Beverages & Tobacco.......... 1,028,513 1.3
Broadcasting & Publishing.... 1,702,047 2.1
Building Materials &
Components................. 616,283 0.8
Business & Public Services... 3,348,645 4.2
Chemicals.................... 1,581,355 2.0
Construction & Housing....... 548,961 0.7
Data Processing &
Reproduction............... 806,585 1.0
Electrical & Electronics..... 6,294,363 7.9
Electronic Components &
Instruments................ 2,651,174 3.4
Energy Equipment & Services.. 274,158 0.3
Energy Sources............... 4,142,252 5.2
Financial Services........... 1,060,415 1.3
Food & Household Products.... 1,382,431 1.7
Forest Products & Paper...... 173,954 0.2
Health & Personal Care....... 6,092,632 7.6
Industrial Components........ 921,829 1.2
Insurance.................... 3,885,401 4.9
Leisure & Tourism............ 636,570 0.8
Machinery & Engineering...... 1,120,011 1.4
Merchandising................ 2,449,065 3.1
Metals-Nonferrous............ 370,291 0.5
Metals-Steel................. 432,618 0.5
Miscellaneous-Materials &
Commodities................ 235,595 0.3
Multi-Industry............... 876,307 1.1
Real Estate.................. 937,445 1.2
Recreation & Other Consumer
Goods...................... 941,716 1.2
Telecommunications........... 11,320,041 14.2
Textile & Apparel............ 22,636 0.0*
Transportation-Airlines...... 389,932 0.5
Transportation-Road & Rail... 526,888 0.7
Transportation-Shipping...... 417,835 0.5
U.S. Government.............. 5,138,028 6.4
Utilities-Electrical & Gas... 2,618,326 3.3
Wholesale & International
Trade...................... 425,913 0.5
----------- -----
78,930,002 98.9
Cash and Other Assets,
Less Liabilities........... 844,870 1.1
----------- -----
Net Assets................... $79,774,872 100.0%
=========== =====
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
* Less than one tenth of a percent.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
93
<PAGE> 96
EAFE INDEX FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $58,761,964)............................ $ 78,930,002
Cash denominated in foreign currencies
(identified cost $10,671).................... 10,518
Deposit with broker for futures contracts
(identified cost $626,810)................... 600,665
Receivables:
Dividends and interest....................... 315,757
Variation margin on futures contracts........ 39,547
Investment securities sold................... 32,982
Fund shares sold............................. 18,899
--------------
Total assets............................. 79,948,370
--------------
LIABILITIES:
Payables:
MainStay Management.......................... 40,408
Fund shares redeemed......................... 38,054
Investment securities purchased.............. 24,785
Transfer agent............................... 4,484
Custodian.................................... 3,359
Accrued expenses............................... 62,408
--------------
Total liabilities........................ 173,498
--------------
Net assets..................................... $ 79,774,872
==============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class.......................... $ 6,432
Institutional Service Class.................. 47
Additional paid-in capital..................... 59,606,275
Accumulated distribution in excess of net
investment income............................ (383,721)
Accumulated undistributed net realized gain on
investments and futures contracts............ 480,776
Accumulated net realized loss on foreign
currency transactions........................ (85,118)
Net unrealized appreciation on investments and
futures contracts............................ 20,207,585
Net unrealized depreciation on translation of
other assets and liabilities in foreign
currencies................................... (57,404)
--------------
Net assets..................................... $ 79,774,872
==============
Institutional Class
Net assets applicable to outstanding shares.... $ 79,200,135
==============
Shares of capital stock outstanding............ 6,432,228
==============
Net asset value per share outstanding.......... $ 12.31
==============
Institutional Service Class
Net assets applicable to outstanding shares.... $ 574,737
==============
Shares of capital stock outstanding............ 47,037
==============
Net asset value per share outstanding.......... $ 12.22
==============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (a)................................ $ 431,629
Interest..................................... 111,664
--------------
Total income............................. 543,293
--------------
Expenses:
Management................................... 357,031
Portfolio pricing............................ 42,193
Custodian.................................... 38,435
Professional................................. 23,008
Registration................................. 14,991
Transfer agent............................... 14,130
Shareholder communication.................... 2,511
Service...................................... 706
Directors.................................... 683
Miscellaneous................................ 12,517
--------------
Total expenses before
reimbursement........................... 506,205
Expense reimbursement from Manager........... (150,572)
--------------
Net expenses............................. 355,633
--------------
Net investment income.......................... 187,660
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Security transactions........................ 66,183
Futures transactions......................... 473,153
Foreign currency transactions................ (85,118)
--------------
Net realized gain on investments and foreign
currency transactions........................ 454,218
--------------
Net change in unrealized appreciation
(depreciation) on investments:
Security transactions........................ 3,376,877
Futures transactions......................... 2,089
Translation of other assets and liabilities
in foreign currencies...................... (54,979)
--------------
Net unrealized gain on investments and foreign
currency transactions........................ 3,323,987
--------------
Net realized and unrealized gain on investments
and foreign currency transactions............ 3,778,205
--------------
Net increase in net assets resulting from
operations................................... $ 3,965,865
==============
</TABLE>
------------
(a) Dividends recorded net of foreign withholding taxes of $59,527.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
94
<PAGE> 97
MAINSTAY
INSTITUTIONAL FUNDS INC.
EAFE INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income................................... $ 187,660 $ 675,093 $ 529,655
Net realized gain on investments and foreign currency
transactions.......................................... 454,218 5,252,577 4,414,644
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions......... 3,323,987 2,373,714 6,101,634
-------------- -------------- --------------
Net increase in net assets resulting from operations.... 3,965,865 8,301,384 11,045,933
-------------- -------------- --------------
Dividends and distributions to shareholders:
From net investment income:
Institutional Class................................... -- -- (526,186)
Institutional Service Class........................... -- -- (3,469)
From net realized gain on investments and foreign
currency transactions:
Institutional Class................................... (5,693,950) (291,622) (3,871,228)
Institutional Service Class........................... (41,996) (2,418) (29,729)
In excess of net investment income:
Institutional Class................................... -- (51,926) (560,314)
Institutional Service Class........................... -- (339) (3,666)
-------------- -------------- --------------
Total dividends and distributions to shareholders... (5,735,946) (346,305) (4,994,592)
-------------- -------------- --------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 32,386,362 64,643,850 29,896,062
Institutional Service Class........................... 160,153 107,045 86,552
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 5,373,871 323,542 4,948,383
Institutional Service Class........................... 41,286 2,757 36,795
-------------- -------------- --------------
37,961,672 65,077,194 34,967,792
Cost of shares redeemed:
Institutional Class................................... (24,385,897) (70,367,464) (30,946,559)
Institutional Service Class........................... (162,647) (118,913) (102,752)
-------------- -------------- --------------
Increase (decrease) in net assets derived from capital
share transactions.................................. 13,413,128 (5,409,183) 3,918,481
-------------- -------------- --------------
Net increase in net assets............................ 11,643,047 2,545,896 9,969,822
NET ASSETS:
Beginning of period....................................... 68,131,825 65,585,929 55,616,107
-------------- -------------- --------------
End of period............................................. $ 79,774,872 $ 68,131,825 $ 65,585,929
============== ============== ==============
Accumulated distribution in excess of net investment
income at end of period................................. $ (383,721) $ (571,381) $ (867,449)
============== ============== ==============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
95
<PAGE> 98
EAFE INDEX FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period........ $ 12.59 $ 12.51 $ 11.27 $ 11.22 $ 10.24 $ 10.20
------- ------- ------- ------- ------- -------
Net investment income...... 0.06 0.05 0.11 0.09 0.11 0.08
Net realized and unrealized
gain (loss) on
investments............... 0.75 0.75 1.39 1.38 1.84 1.83
Net realized and unrealized
gain (loss) on foreign
currency transactions..... (0.03) (0.03) (0.11) (0.11) 0.00(a) 0.00(a)
------- ------- ------- ------- ------- -------
Total from investment
operations................ 0.78 0.77 1.39 1.36 1.95 1.91
------- ------- ------- ------- ------- -------
Less dividends and
distributions:
From net investment
income.................... -- -- -- -- (0.11) (0.08)
From net realized gain on
investments and foreign
currency transactions..... (1.06) (1.06) (0.06) (0.06) (0.72) (0.72)
In excess of net investment
income.................... -- -- (0.01) (0.01) (0.09) (0.09)
------- ------- ------- ------- ------- -------
Total dividends and
distributions............. (1.06) (1.06) (0.07) (0.07) (0.92) (0.89)
------- ------- ------- ------- ------- -------
Net asset value at end of
period.................... $ 12.31 $ 12.22 $ 12.59 $ 12.51 $ 11.27 $ 11.22
======= ======= ======= ======= ======= =======
Total investment return.... 5.85%(b) 5.80%(b) 12.31%(b) 12.08%(b) 19.15% 18.83%
Ratios (to average net
assets)/Supplemental Data:
Net investment income..... 0.50%+ 0.25%+ 1.14%+ 0.89%+ 0.90% 0.65%
Net expenses.............. 0.94%+ 1.19%+ 0.94%+ 1.19%+ 0.94% 1.19%
Expenses (before
reimbursement).......... 1.35%+ 1.60%+ 1.32%+ 1.57%+ 1.38% 1.63%
Portfolio turnover rate.... 0%(c) 0%(c) 19% 19% 24% 24%
Net assets at end of period
(in 000's)................ $79,200 $ 575 $67,582 $ 549 $65,087 $ 499
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Less than one cent per share.
(b) Total return is not annualized.
(c) Less than one percent.
(d) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
96
<PAGE> 99
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(D) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 14.00 $ 13.97 $ 13.56 $ 13.51 $ 12.63 $ 12.63 $ 12.03
------- ------- ------- ------- ------- ------- -------
0.22 0.19 0.16 0.12 0.13 0.14 0.10
(0.28) (0.29) 0.71 0.73 1.11 1.05 0.70
(0.00)(a) (0.00)(a) (0.00)(a) (0.00)(a) (0.10) (0.10) 0.03
------- ------- ------- ------- ------- ------- -------
(0.06) (0.10) 0.87 0.85 1.14 1.09 0.83
------- ------- ------- ------- ------- ------- -------
(0.22) (0.19) (0.16) (0.12) (0.04) (0.04) (0.09)
(3.39) (3.39) (0.25) (0.25) (0.14) (0.14) (0.14)
(0.09) (0.09) (0.02) (0.02) (0.03) (0.03) --
------- ------- ------- ------- ------- ------- -------
(3.70) (3.67) (0.43) (0.39) (0.21) (0.21) (0.23)
------- ------- ------- ------- ------- ------- -------
$ 10.24 $ 10.20 $ 14.00 $ 13.97 $ 13.56 $ 13.51 $ 12.63
======= ======= ======= ======= ======= ======= =======
0.40% 0.08% 6.45% 6.37% 9.03% 8.63% 6.83%
1.04% 0.79% 1.11% 0.86% 1.01% 0.76% 0.57%
0.94% 1.19% 0.94% 1.19% 1.03% 1.28% 1.26%
1.26% 1.51% 1.23% 1.48% 1.24% 1.49% 1.26%
6% 6% 4% 4% 6% 6% 7%
$55,177 $ 439 $89,029 $ 396 $80,087 $ 257 $72,265
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
97
<PAGE> 100
INTERNATIONAL BOND FUND
--------------------------------------------------------------------------------
In the last two months of 1999, the global economic recovery continued. The
Federal Reserve, European Central Bank, and Bank of England responded by raising
interest rates, which sent bond yields higher. Banking systems were flush with
liquidity at year end, in anticipation of Y2K related problems.
In the first calendar quarter of 2000, in local currency terms, Australia
(+3.78%), Canada (+3.48%), Sweden (+2.68%), and the U.K. (+2.21%) all
outperformed the 1.26% return for the international bond market as a whole, but
currency weaknesses relative to the U.S. dollar took an expensive toll on
returns measured in U.S. dollars. During the quarter, the euro weakened by
nearly 5%, and the volatile yen closed the first quarter of 2000 about where it
started. Rising interest rates in the U.S. and elsewhere continued to weigh
heavily on bond prices.
In April 2000, international bond markets remained volatile, despite market
fundamentals that provided reason for optimism. Japan and the U.K. posted
positive returns for the month, despite the general market weakness that
accompanied anticipation of higher interest rates. The U.S. dollar's extended
strength continued to hurt many foreign currencies in the final month of the
Fund's fiscal semiannual reporting period.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional International
Bond Fund returned -9.09% for Institutional Class shares and -9.23% for Service
Class shares. Both share classes underperformed the - 4.43% return of the
average Lipper(1) international income fund over the same period. During the
Fund's fiscal semiannual period, the Salomon Smith Barney Non-U.S. World
Government Bond Index(2) returned -6.86%. The primary reasons for the Fund's
underperformance were holdings in weaker markets and exposure to currencies that
behaved differently than we had anticipated. The euro in particular hurt the
Fund's performance in absolute terms and relative to the Fund's peers and its
benchmark. During this six-month period the euro declined 9.6% versus the
dollar. The Fund has maintained an overweighted position versus the Index, while
many of the Fund's peers have not.
Although we continue to view the euro as extremely undervalued, we have taken a
more defensive position for the Fund by reducing its euro exposure.
In the first calendar quarter of 2000, currencies in Australia, Sweden, and the
U.K. all declined against the U.S. dollar, detracting from the Fund's
performance. We believe that once the market's bullish attitude toward the U.S.
dollar subsides, the Fund may benefit from a sharp correction in the U.S. dollar
that may allow the value of other currencies to rise.
BOND INVESTMENTS
Although the Japanese and U.K. bond markets were strong performers in the last
two months of 1999, at year end, the Fund was underweighted in these bonds
relative to its benchmark. As the end of the millennium approached, we added to
the Fund's Japanese bond holdings, but shortened the Fund's duration,
anticipating excess supply that would likely result from Japan's fiscal stimulus
packages.
The Fund also established some tactical bond trades in New Zealand versus
Australia and in the U.K. versus Germany, while taking profits on Danish bonds
versus other mainland European bonds. Overall, these tactical trades had a
positive impact the Fund's performance.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(2) The Salomon Smith Barney Non-U.S. Dollar World Government Bond Index is an
unmanaged index generally considered to be representative of the world bond
market. Returns reflect reinvestment of all income and capital gains. An
investment cannot be made directly into an index.
98
<PAGE> 101
Rising interest rates hurt bond investors in major markets around the world
during the Fund's six-month reporting period. Many investors continued to
anticipate higher interest rates, which had a dampening effect on most markets.
Even so, Japan and the U.K. managed to post positive returns in April 2000,
which had a positive impact on the Fund's performance, since the Fund had
substantial holdings in these two markets.
LOOKING AHEAD
Financial windfalls from the sale of GSM (Global System for Mobile
Communications) licenses in the U.K. were much higher than anticipated. We
believe Euroland nations will experience similar results when they begin to
auction their licenses in the near future. This additional funding may lead to
reductions in the supply of government debt, squeezing prices higher. If this
occurs, yield curves may flatten and credit spreads may widen, regardless of
underlying fundamentals.
Meanwhile concerns about interest rates and inflation remain major market
drivers. Volatility continues and our outlook remains cautious. No matter what
the markets may bring, the Fund will continue seeking to provide total return by
investing primarily in a portfolio of non-U.S. (primarily government) debt
securities.
JOSEPH PORTERA
Portfolio Manager
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in foreign securities may be subject to greater risks than domestic
investments. These risks include currency fluctuations, changes in U.S. or
foreign tax or currency laws, and changes in monetary policies and economic and
political conditions in foreign countries. High-yield securities run greater
risks of price fluctuations, loss of principal and interest, default or
bankruptcy by the issuer, and other risks, which is why these securities are
considered speculative. Nondiversified funds may invest a greater percentage of
their assets than other funds in a particular issuer, which may make them more
susceptible to risks associated with a single economic, political, or regulatory
occurrence.
99
<PAGE> 102
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INTERNATIONAL BOND FUND VS
SALOMON SMITH BARNEY NON-US DOLLAR WORLD
GOVERNMENT BOND INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY NON-
INSTITUTIONAL INTERNATIONAL U.S. DOLLAR WORLD
BOND GOVERNMENT BOND INDEX
--------------------------- -------------------------
<S> <C> <C>
1/31/90 250000.00 250000.00
90 249944.00 291754.00
91 296770.00 311155.00
92 319553.00 325991.00
93 366070.00 375308.00
94 377438.00 397767.00
95 447112.00 475552.00
96 511145.00 494962.00
97 524554.00 473878.00
98 590275.00 608225.00
99 545092.00 577362.00
00 as of 4/30/00 508019.00 545780.00
</TABLE>
SOURCE: LIPPER INC.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/31/90.*
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INTERNATIONAL BOND FUND VS
SALOMON SMITH BARNEY NON-US DOLLAR WORLD
GOVERNMENT BOND INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY NON-U.S.
DOLLAR WORLD GOVERNMENT BOND
INSTITUTIONAL INTERNATIONAL BOND INDEX
-------------------------------- -----------------------------
<S> <C> <C>
1/31/90 250000.00 250000.00
90 249944.00 291754.00
91 296770.00 311155.00
92 319553.00 325991.00
93 366070.00 375308.00
94 377438.00 397767.00
95 446358.00 475552.00
96 509186.00 494962.00
97 520728.00 473878.00
98 584776.00 608225.00
99 538889.00 577362.00
00 as of 4/30/00 501586.00 545780.00
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(+) AVERAGE ANNUAL TOTAL RETURN(+)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period One year Five years Since inception
----------------------------------------------------------------------------------------------------------------------------
International Bond Fund Institutional Class* -9.09% -9.75% 4.18% 7.16%
International Bond Fund Service Class* -9.23 -10.04 3.91 7.03
Average Lipper international income fund(++) -4.43 -5.80 3.34 5.82
Salomon Smith Barney Non-U.S. Dollar World Government Bond -6.86 -5.56 1.50 7.91
Index(sec.)
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
18.73% 7.68% 14.56% 3.11% 18.46% 14.32% 2.62% 12.53% -5.33%
<CAPTION>
2000
----
<S> <C>
-9.09%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
The inception date of MainStay Institutional International Bond Fund was 1/1/95.
(*) The inception date of MainStay Institutional International Bond Fund's
predecessor separate account ("Separate Account") is 1/31/90. Performance
figures, and, in the case of the graphs reflecting the investment of
$250,000, investment results include the historical performance of the
Separate Account for the period prior to MainStay Institutional
International Bond Fund's commencement of operations on 1/1/95. MacKay
Shields LLC, the International Bond Fund's subadvisor, served as investment
advisor to the Separate Account, and the investment objective, policies,
restrictions, guidelines, and management style of the Separate Account were
substantially similar to those of MainStay Institutional International Bond
Fund. Performance figures and investment results for the period prior to
1/1/95 have been calculated using the Separate Account's expense structure,
which generally was higher than the expense structure of MainStay
Institutional International Bond Fund. The Separate Account was not
registered under the Investment Company Act of 1940 ("1940 Act") and
therefore was not subject to certain investment restrictions imposed under
the 1940 Act. If the Separate Account had been registered under the 1940
Act, the Separate Account's performance and investment results may have been
adversely affected.
(+) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized basis
of the average daily net asset value of the Service Class shares.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Salomon Smith Barney Non-U.S. Dollar World Government Bond Index is
an unmanaged index generally considered to be representative of the world
bond market. Returns reflect reinvestment of all income and capital
gains. An investment cannot be made directly into an index.
100
<PAGE> 103
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
LONG-TERM BONDS (95.5%)+
CORPORATE BONDS (18.4%)
PRINCIPAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
FRANCE (3.0%)
Societe Nationale des Chemins
de Fer
10.40%, due 12/10/01........ FF 9,120,000 $ 1,369,772
-----------
GERMANY (3.5%)
Bayerische VBK New York
4.50%, due 6/24/02.......... E 487,000 440,246
Deutsche Pfandbriefbank
Series 436
5.75%, due 3/4/09........... 906,000 828,530
Kredit Fuer Wiederaufbau
5.00%, due 1/4/09........... 369,000 322,635
-----------
1,591,411
-----------
JAPAN (5.1%)
Inter-American Development
Bank
1.90%, due 7/8/09........... Y 174,000,000 1,631,498
Oesterreichische
Krontrollbank AG
1.80%, due 3/22/10.......... 75,000,000 694,157
-----------
2,325,655
-----------
UNITED KINGDOM (6.3%)
Bank Nederlandse Gemeenten NV
Medium Term Note
Series E
6.375%, due 3/30/05......... L 606,000 939,496
Bank of Scotland Capital
Funding L.P.
8.117%, due 3/29/49 (b)..... 150,000 236,245
European Investment Bank
6.00%, due 12/7/28.......... 367,000 610,748
6.25%, due 12/7/08.......... 703,000 1,092,738
-----------
2,879,227
-----------
UNITED STATES (0.5%)
International Business
Machines Corp.
0.90%, due 4/14/03.......... Y 27,000,000 249,829
-----------
Total Corporate Bonds
(Cost $9,023,875)........... 8,415,894
-----------
GOVERNMENTS &
FEDERAL AGENCIES (77.1%)
AUSTRALIA (0.6%)
Australian Government Series
803
9.50%, due 8/15/03.......... A$ 432,000 274,667
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
AUSTRIA (2.9%)
Republic of Austria
Series 98 2
4.30%, due 7/15/03.......... E 1,478,000 $ 1,320,641
-----------
BELGIUM (4.3%)
Kingdom of Belgium
Series 10
8.75%, due 6/25/02.......... 1,995,000 1,962,221
-----------
CANADA (5.3%)
Canadian Government
Series WH31
6.00%, due 6/1/08........... C$ 1,233,000 822,490
Series VR22
7.50%, due 3/1/01........... 1,656,000 1,133,281
Series VW17
8.00%, due 6/1/27........... 576,000 496,206
-----------
2,451,977
-----------
DENMARK (2.2%)
Kingdom of Denmark
6.00%, due 11/15/09......... DK 3,516,000 439,935
7.00%, due 12/15/04......... 4,587,000 593,510
-----------
1,033,445
-----------
FINLAND (4.6%)
Finnish Government
5.75%, due 2/23/11.......... E 2,265,000 2,101,462
-----------
FRANCE (4.1%)
France Obligations
Assimilables du Tresor
4.00%, due 4/25/09.......... 1,370,000 1,128,006
French Treasury Note
5.00%, due 7/12/05.......... 814,000 739,056
-----------
1,867,062
-----------
GERMANY (13.7%)
Bundesobligation
Series 127
4.50%, due 5/19/03.......... 3,415,000 3,085,024
Series 125
5.00%, due 11/12/02......... 1,497,000 1,371,042
Republic of Deutschland
Series 98
5.25%, due 1/4/08........... 585,000 531,033
5.625%, due 1/4/28.......... 1,438,000 1,297,087
-----------
6,284,186
-----------
ITALY (3.3%)
Buoni Poliennali del Tesoro
6.00%, due 5/1/31........... 341,000 319,953
6.50%, due 11/1/27.......... 498,000 491,724
8.50%, due 1/1/04........... 696,000 705,432
-----------
1,517,109
-----------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
101
<PAGE> 104
INTERNATIONAL BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
GOVERNMENTS &
FEDERAL AGENCIES (CONTINUED)
PRINCIPAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
JAPAN (23.8%)
Japanese Government
Series 207
0.90%, due 12/22/08......... Y 181,900,000 $ 1,554,699
Series 45
2.40%, due 3/20/20.......... 67,900,000 653,887
Series 181
3.40%, due 6/20/05.......... 621,100,000 6,393,005
Series 144
6.00%, due 12/20/01......... 229,400,000 2,317,284
-----------
10,918,875
-----------
NETHERLANDS (3.0%)
Netherlands Government
3.75%, due 7/15/09.......... E 1,744,000 1,400,184
-----------
SOUTH KOREA (0.8%)
Republic of Korea
8.875%, due 4/15/08......... $ 340,000 350,625
-----------
SPAIN (4.8%)
Bonos Y Obligacion del Estado
4.50%, due 7/30/04.......... E 1,555,000 1,384,625
5.15%, due 7/30/09.......... 909,000 807,830
-----------
2,192,455
-----------
UNITED KINGDOM (3.7%)
United Kingdom Treasury Bonds
6.00%, due 12/7/28.......... L 315,000 611,161
6.75%, due 11/26/04......... 313,000 508,883
9.00%, due 10/13/08......... 293,000 563,571
-----------
1,683,615
-----------
Total Governments &
Federal Agencies
(Cost $39,259,215)........... 35,358,524
-----------
Total Long-Term Bonds
(Cost $48,283,090).......... 43,774,418
-----------
</TABLE>
<TABLE>
NOTIONAL
AMOUNT VALUE
---------------------------
<CAPTION>
PURCHASED OPTIONS (0.1%)
FEDERAL AGENCIES (CONTINUED)
<S> <C> <C>
UNITED STATES (0.1%)
Australian Dollar Call/U.S.
Dollar Put
Strike price A$0.62
Expire 5/17/00 (a)(e)....... 4,100,000 $ 218
U.S. Dollar Call/Euro Put
Strike price E0.90
Expire 6/28/00 (a)(e)....... 2,365,000 38,224
-----------
Total Purchased Options
(Cost $61,338).............. 38,442
-----------
Total Investments
(Cost $48,344,428) (c)...... 95.6% 43,812,860(d)
Cash and Other Assets,
Less Liabilities............ 4.4 2,025,923
------------- -----------
Net Assets................... 100.0% $45,838,783
============= ===========
WRITTEN CALL OPTION (-0.3%)
UNITED STATES (-0.3%)
U.S. Dollar Call/Australian
Dollar Put
Strike price A$0.61
Expire 5/17/00 (a)(e)....... (4,100,000) $ (182,764)
-----------
Total Written Call Option
(Premium $34,891)........... $ (182,764)
===========
</TABLE>
------------
(a) Non-income producing security.
(b) May be sold to institutional investors only.
(c) The cost for Federal income tax purposes is $48,643,240.
(d) At April 30, 2000 net unrealized depreciation for securities was $4,830,380,
based on cost for Federal income tax purposes. This consisted of aggregate
gross unrealized appreciation for all investments on which there was an
excess of market value over cost of $36,814, and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $4,867,194.
(e) The following abbreviations are used in the above portfolio:
A$ --Australian Dollar
C$ --Canadian Dollar
DK--Danish Krone
E --Euro
FF --French Franc
Y --Japanese Yen
L --Pound Sterling
$ --U.S. Dollar
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
102
<PAGE> 105
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $48,344,428)............................... $43,812,860
Cash denominated in foreign currencies (identified
cost $155,969).................................. 150,350
Cash.............................................. 101,730
Receivables:
Investment securities sold...................... 1,847,823
Interest........................................ 997,147
Fund shares sold................................ 18,700
Unrealized appreciation on foreign currency
forward contracts............................... 565,727
-----------
Total assets................................ 47,494,337
-----------
LIABILITIES:
Written call option, at value
(premium received $34,891)...................... 182,764
Payables:
Investment securities purchased................. 710,409
MainStay Management............................. 25,193
Custodian....................................... 7,892
Transfer agent.................................. 4,229
Accrued expenses.................................. 35,269
Unrealized depreciation on foreign currency
forward contracts............................... 689,798
-----------
Total liabilities........................... 1,655,554
-----------
Net assets........................................ $45,838,783
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class............................. $ 5,215
Institutional Service Class..................... 12
Additional paid-in capital........................ 53,981,251
Accumulated undistributed net investment income... 714,435
Accumulated net realized loss on investments...... (2,338,649)
Accumulated net realized loss on foreign currency
transactions.................................... (1,598,628)
Net unrealized depreciation on investments and
written call option............................. (4,679,441)
Net unrealized depreciation on translation of
other assets and liabilities in foreign
currencies and foreign currency forward
contracts....................................... (245,412)
-----------
Net assets........................................ $45,838,783
===========
Institutional Class
Net assets applicable to outstanding shares....... $45,730,911
===========
Shares of capital stock outstanding............... 5,214,733
===========
Net asset value per share outstanding............. $ 8.77
===========
Institutional Service Class
Net assets applicable to outstanding shares....... $ 107,872
===========
Shares of capital stock outstanding............... 12,337
===========
Net asset value per share outstanding............. $ 8.74
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest......................................... $ 1,378,033
-----------
Expenses:
Management....................................... 204,369
Professional..................................... 22,757
Custodian........................................ 14,799
Transfer agent................................... 13,170
Registration..................................... 10,908
Shareholder communication........................ 1,975
Directors........................................ 578
Service.......................................... 160
Amortization of organization expense............. 127
Miscellaneous.................................... 9,924
-----------
Total expenses before
reimbursement............................... 278,767
Expense reimbursement from Manager............... (34,138)
-----------
Net expenses................................. 244,629
-----------
Net investment income.............................. 1,133,404
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Security transactions............................ (1,354,351)
Option transactions.............................. (167,118)
Foreign currency transactions.................... (1,598,628)
-----------
Net realized loss on investments and foreign
currency transactions............................ (3,120,097)
-----------
Net change in unrealized depreciation on
investments:
Security transactions............................ (2,448,089)
Written call option transactions................. (147,873)
Translation of other assets and liabilities in
foreign currencies and foreign currency forward
contracts...................................... (237,611)
-----------
Net unrealized loss on investments and foreign
currency transactions............................ (2,833,573)
-----------
Net realized and unrealized loss on investments and
foreign currency transactions.................... (5,953,670)
-----------
Net decrease in net assets resulting from
operations....................................... $(4,820,266)
===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
103
<PAGE> 106
INTERNATIONAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------ ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................... $ 1,133,404 $ 2,143,704 $ 3,089,685
Net realized gain (loss) on investments and foreign
currency transactions................................. (3,120,097) (2,365,648) 1,964,813
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions......... (2,833,573) (3,059,163) 1,581,470
------------ ----------- -----------
Net increase (decrease) in net assets resulting from
operations............................................ (4,820,266) (3,281,107) 6,635,968
------------ ----------- -----------
Dividends and distributions to shareholders:
From net investment income and net realized gain on
foreign currency transactions:
Institutional Class................................... (857,901) (234,371) (3,476,092)
Institutional Service Class........................... (1,353) (851) (12,646)
From net realized gain on investments:
Institutional Class................................... -- (780,510) (645,156)
Institutional Service Class........................... -- (2,666) (2,456)
In excess of net investment income:
Institutional Class................................... -- (146,208) --
Institutional Service Class........................... -- (531) --
------------ ----------- -----------
Total dividends and distributions to shareholders... (859,254) (1,165,137) (4,136,350)
------------ ----------- -----------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 604,039 3,608,411 11,263,450
Institutional Service Class........................... -- 814 21,938
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions:
Institutional Class................................... 850,885 1,147,733 4,116,548
Institutional Service Class........................... 1,352 4,078 14,879
------------ ----------- -----------
1,456,276 4,761,036 15,416,815
Cost of shares redeemed:
Institutional Class................................... (8,643,686) (4,290,956) (3,932,796)
Institutional Service Class........................... (78,553) (22,173) (49,589)
------------ ----------- -----------
Increase (decrease) in net assets derived from capital
share transactions.................................. (7,265,963) 447,907 11,434,430
------------ ----------- -----------
Net increase (decrease) in net assets................. (12,945,483) (3,998,337) 13,934,048
NET ASSETS:
Beginning of period....................................... 58,784,266 62,782,603 48,848,555
------------ ----------- -----------
End of period............................................. $ 45,838,783 $58,784,266 $62,782,603
============ =========== ===========
Accumulated undistributed net investment income at end of
period.................................................. $ 714,435 $ 440,285 $ 235,222
============ =========== ===========
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
104
<PAGE> 107
(THIS PAGE INTENTIONALLY LEFT BLANK)
105
<PAGE> 108
INTERNATIONAL BOND FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 9.80 $ 9.74 $ 10.56 $ 10.52 $ 10.05 $ 10.01
------- ------- ------- ------- ------- -------
Net investment income....... 0.21 0.17 0.35 0.37 0.56 0.53
Net realized and unrealized
gain (loss) on
investments................ (0.76) (0.73) (0.62) (0.65) 0.71 0.71
Net realized and unrealized
gain (loss) on foreign
currency transactions...... (0.33) (0.33) (0.30) (0.30) (0.01) (0.01)
------- ------- ------- ------- ------- -------
Total from investment
operations................. (0.88) (0.89) (0.57) (0.58) 1.26 1.23
------- ------- ------- ------- ------- -------
Less dividends and
distributions:
From net investment income
and net realized gain on
foreign currency
transactions............... (0.15) (0.11) (0.04) (0.04) (0.63) (0.60)
From net realized gain on
investments................ -- -- (0.13) (0.13) (0.12) (0.12)
In excess of net investment
income..................... -- -- (0.02) (0.03) -- --
------- ------- ------- ------- ------- -------
Total dividends and
distributions.............. (0.15) (0.11) (0.19) (0.20) (0.75) (0.72)
------- ------- ------- ------- ------- -------
Net asset value at end of
period..................... $ 8.77 $ 8.74 $ 9.80 $ 9.74 $ 10.56 $ 10.52
======= ======= ======= ======= ======= =======
Total investment return..... (9.09%)(b) (9.23%)(b) (5.33%)(b) (5.50%)(b) 12.53% 12.30%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 4.44%+ 4.19%+ 4.36%+ 4.11%+ 5.61% 5.36%
Net expenses............... 0.95%+ 1.20%+ 0.95%+ 1.20%+ 0.95% 1.20%
Expenses (before
reimbursement)........... 1.09%+ 1.34%+ 1.07%+ 1.32%+ 1.08% 1.33%
Portfolio turnover rate..... 88% 88% 251% 251% 299% 299%
Net assets at end of period
(in 000's)................. $45,731 $ 108 $58,585 $ 199 $62,549 $ 234
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Commencement of operations.
(b) Total return is not annualized.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
106
<PAGE> 109
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31 JANUARY 1, 1995(a)
------------------------------------------------------------- THROUGH
1997 1996 DECEMBER 31, 1995
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 11.10 $ 11.07 $ 11.16 $ 11.14 $ 10.00 $ 10.00
------- ------- ------- ------- ------- -------
1.01 0.98 1.21 1.19 0.70 0.70
(1.11) (1.13) 0.11 0.11 1.12 1.10
0.40 0.41 0.27 0.26 0.02 0.02
------- ------- ------- ------- ------- -------
0.30 0.26 1.59 1.56 1.84 1.82
------- ------- ------- ------- ------- -------
(0.99) (0.96) (1.37) (1.35) (0.55) (0.55)
(0.36) (0.36) (0.28) (0.28) (0.13) (0.13)
-- -- -- -- -- --
------- ------- ------- ------- ------- -------
(1.35) (1.32) (1.65) (1.63) (0.68) (0.68)
------- ------- ------- ------- ------- -------
$ 10.05 $ 10.01 $ 11.10 $ 11.07 $ 11.16 $ 11.14
======= ======= ======= ======= ======= =======
2.62% 2.27% 14.32% 14.08% 18.46% 18.26%
5.86% 5.61% 6.02% 5.77% 6.61% 6.36%
0.95% 1.20% 0.95% 1.20% 0.95% 1.20%
1.10% 1.35% 1.08% 1.33% 1.03% 1.28%
186% 186% 57% 57% 92% 92%
$48,613 $ 235 $51,980 $ 225 $44,388 $ 6
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
107
<PAGE> 110
BOND FUND
--------------------------------------------------------------------------------
During the six months ended April 30, 2000, the Federal Reserve raised the
targeted federal funds rate by 75 basis points, in three successive
25-basis-point moves in November, February, and March.
Despite rising rates, which lowered bond prices, other forces were also at work
during the period, which had a positive effect on long-term bond returns.
Specifically, the Treasury has used a portion of the government surplus to
repurchase government bonds, thereby reducing supply and raising bond prices.
The Treasury plans to buy back up to $30 billion by the end of 2000, and some
believe the amount could be as high as $150 billion over the next three to four
years.
Throughout the reporting period, inflation concerns continued to plague the
market. Data reported in April 2000 had a negative impact on bond markets as the
employment cost index reported its highest gain in 10 years, consumer spending
continued to increase, and rapid growth in real GDP suggested that the economy
has yet to slow down. With a gyrating yield curve and continuing volatility,
many investors anticipate more Federal Reserve action in the months ahead.
PERFORMANCE REVIEW
For the six-month period ended April 30, 2000, MainStay Institutional Bond Fund
returned 0.54% for Institutional Class shares and 0.50% for Service Class
shares. Both share classes underperformed the 1.10% return of the average
Lipper(1) intermediate U.S. government fund over the same period. For the
semiannual period, the Lehman Brothers Aggregate Index(2) returned 1.42%.
The Fund remained defensively positioned as the year 2000 approached, with
high-quality securities and highly liquid issues providing a buffer should any
Y2K concerns come to fruition. As we moved comfortably into the new year, the
Fund managers continued to stress high quality and liquidity. Mortgage-backed
securities and corporate bonds were weaker performers during the first calendar
quarter of 2000, as the government's buyback policies caused Treasuries to
outperform.
Performance over the past six months was negatively impacted by security
selection primarily in corporate bonds and to a lesser extent in Treasuries. The
Fund's ability to capitalize on shifting yield curve changes, and an
underweighted position in the agency and mortgage-backed securities sectors
contributed positively to performance.
FUND POSITIONING
In April 2000, interest rates rose about 20 basis points across the board. The
lone exception was the 30-year bond, which rose only 13 basis points. We expect
the longer-term securities to continue to outperform and have positioned the
portfolio accordingly.
We have reduced the Fund's exposure to corporate bonds, which have suffered from
rising interest rates, inflation concerns, disappointing earnings reports, and
low equity valuations. With corporate yield spreads continuing to widen relative
to Treasuries, as of April 30, 2000, the Fund was underweighted in corporate
bonds relative to its benchmark.
Mortgage-backed and asset-backed securities saw spreads tighten in April, after
widening in previous months. We believe these asset classes provide sound ways
to seek to enhance the Fund's portfolio yield and the Fund continues to hold
substantial positions in mortgage-backed and asset-backed securities.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(2) The Lehman Brothers Aggregate Index (the "Aggregate Index") includes the
following other Lehman Brothers' indices: the Government Index, the
Corporate Index, the Mortgage-Backed Securities Index and the Asset-Backed
Securities Index. To qualify for inclusion in the Aggregate Index,
securities must be U.S. dollar-denominated and investment grade, and have a
fixed-rate coupon, a remaining maturity or average life of at least one
year, and a par amount outstanding of at least $150 million. Previously the
Bond Fund has used the Lehman Brothers Gov't/Corporate Bond Index as a
comparative broad-based securities market index. The Bond Fund has chosen
the Lehman Brothers Aggregate Index because it is more reflective of the mix
of securities in which the Fund invests.
108
<PAGE> 111
LOOKING AHEAD
Anticipating additional--and possibly more aggressive--rate increases from the
Federal Reserve, we have positioned the Fund defensively by shortening its
portfolio duration. We continue to monitor economic growth and inflation
indicators, with an eye on both the data itself and investor reactions. Whatever
the economy and the markets may bring, the Fund will continue to seek to
maximize total return consistent with liquidity, low risk to principal, and
investment in debt securities.
EDWARD J. MUNSHOWER
CHRISTOPHER HARMS
Portfolio Managers
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in foreign securities may be subject to greater risks than domestic
investments. These risks include currency fluctuations, changes in U.S. or
foreign tax or currency laws, and changes in monetary policies and economic and
political conditions in foreign countries. Investments in the Fund are not
guaranteed, even though some of the Fund's investments are guaranteed by the
U.S. government or its agencies or instrumentalities.
109
<PAGE> 112
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL BOND FUND VS LEHMAN BROTHERS
AGGREGATE INDEX INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE INDEX BOND FUND
------------------------------- ---------
<S> <C> <C>
1/2/91 250000 250000
91 290019 285000
92 311521 303207
93 341879 332738
94 331908 321737
95 393183 379249
96 407479 389872
97 446775 423268
98 485650 456821
99 481648 445518
00 as of 4/30/00 490865 451882
</TABLE>
Source: Lipper, Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL BOND FUND VS LEHMAN BROTHERS
AGGREGATE INDEX SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
LEHMAN BROTHERS AGGREGATE INDEX BOND FUND
------------------------------- ---------
<S> <C> <C>
1/2/91 250000 250000
91 290019 285000
92 311521 303207
93 341879 332738
94 331908 321737
95 393183 378212
96 407479 388121
97 446775 419984
98 485650 452463
99 481648 440162
00 as of 4/30/00 490865 445979
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*) AS OF
PERFORMANCE AS OF APRIL 30, 2000 APRIL 30, 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period
One year Five years Since inception
------------------------------------------------------------------------------------------------------------------
Bond Fund Institutional Class 0.54% -0.38% 5.80% 6.55%
Bond Fund Service Class(+) 0.50 -0.53 5.55 6.40
Average Lipper intermediate U.S. government
fund(++) 1.10 0.49 5.55 6.14
Lehman Brothers Aggregate Index(sec.) 1.42 1.26 6.79 7.50
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
14% 6.39% 9.74% -3.31% 17.88% 2.80% 8.57% 7.93% -1.61%
<CAPTION>
2000
----
<S> <C>
0.54%
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized basis
of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class from
the Fund's inception (1/2/91) up to 12/31/94. Performance figures for these
two classes will vary after this date based on differences in their expense
structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Lehman Brothers Aggregate Index (the "Aggregate Index") includes the
following other Lehman Brothers' indices: the Government Index, the
Corporate Index, the Mortgage-Backed Securities Index and the
Asset-Backed Securities Index. To qualify for inclusion in the Aggregate
Index, securities must be U.S. dollar-denominated and investment grade,
and have a fixed-rate coupon, a remaining maturity or average life of at
least one year, and a par amount outstanding of at least $150 million.
Previously the Bond Fund has used the Lehman Brothers Gov't/Corporate
Bond Index as a comparative broad-based securities market index. The Bond
Fund has chosen the Lehman Brothers Aggregate Index because it is more
reflective of the mix of securities in which the Fund invests.
110
<PAGE> 113
MAINSTAY
INSTITUTIONAL FUNDS INC.
BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
LONG-TERM INVESTMENTS (93.2%)+
ASSET-BACKED SECURITIES (12.7%)
PRINCIPAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
AIRLINES (0.3%)
Northwest Airlines, Inc.
Series 1999-3 Class B
9.485%, due 4/1/15.......... $ 510,000 $ 500,086
------------
AIRPLANE LEASES (1.3%)
Morgan Stanley Aircraft
Finance Series 2 Class A3
6.65%, due 3/15/25
(a)(b)(c)................... 2,325,000 2,327,092
------------
AUTO LEASES (3.7%)
Capital Auto Receivables
Asset Trust
Series 2000-1 Class A2
6.81%, due 4/15/01(c)....... 1,560,000 1,555,663
Ford Credit Auto Owner Trust
Series 2000-B Class A3
6.97%, due 4/15/03 (c)...... 1,475,000 1,469,321
Premier Auto Trust
Series 1998-4 Class A3
5.69%, due 6/8/02 (c)....... 2,235,000 2,215,623
Series 1999-1 Class A3
5.69%, due 11/8/02 (c)...... 1,705,000 1,677,907
------------
6,918,514
------------
CONSUMER SERVICES (0.8%)
Arran One Ltd.
Series 2000-A Class B
6.5527%, due 3/15/03
(b)(c)...................... 1,575,000 1,574,527
------------
ELECTRIC UTILITIES (2.3%)
Boston Edison Co.
Series 1999-1 Class A2
6.45%, due 9/15/03 (c)...... 1,525,000 1,492,060
PECO Energy Transition Trust
Series 2000-A Class A2
7.30%, due 9/1/02........... 1,175,000 1,172,767
West Penn Funding LLC
Series 1999-A Class A4
6.98%, due 12/26/08
(b)(c)...................... 1,690,000 1,632,388
------------
4,297,215
------------
EQUIPMENT LOANS (3.0%)
Case Equipment Loan Trust
Series 1999-A Class A4
5.77%, due 8/15/05 (c)...... 1,650,000 1,594,081
CNH Case Equipment Trust
Series 2000-A Class B
7.32%, due 2/15/07 (c)...... 1,581,813 1,573,129
IKON Receivables LLC
Series 1999-1 Class A3
5.99%, due 5/15/05 (c)...... 2,005,000 1,977,973
Newcourt Equipment Trust
Securities
Series 1998-1 Class A3
5.24%, due 12/20/02
(b)(c)...................... 493,583 486,925
------------
5,632,108
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------
<S> <C> <C>
FINANCE (0.8%)
Green Tree Financial Corp.
Series 1999-4 Class A4
6.64%, due 5/1/31 (c)....... $ 1,495,000 $ 1,446,667
------------
HOME EQUITY LOAN (0.5%)
Conseco Finance
Securitizations Corp.
Series 1999-F Class A2
6.72%, due 10/15/14
(b)(c)...................... 1,010,000 998,567
------------
Total Asset-Backed Securities
(Cost $23,953,138).......... 23,694,776
------------
CORPORATE BONDS (17.7%)
AEROSPACE/DEFENSE (0.6%)
Raytheon Co.
6.30%, due 3/15/05.......... 1,260,000 1,161,833
------------
AIRLINES (0.4%)
Delta Air Lines, Inc.
7.90%, due 12/15/09......... 845,000 788,089
------------
AUTOMOBILES (0.1%)
DaimlerChrysler North America
Holdings Inc.
7.20%, due 9/1/09........... 260,000 250,471
------------
AUTO PARTS & EQUIPMENT (0.4%)
Ford Motor Co.
7.45%, due 7/16/31.......... 835,000 790,795
------------
BANKS (0.6%)
Wells Fargo Co.
7.20%, due 5/1/03........... 1,080,000 1,070,993
------------
BEVERAGES--ALCOHOLIC (0.5%)
Seagram, Joseph E. & Sons
Inc.
5.79%, due 4/15/01.......... 880,000 865,242
------------
CONSUMER FINANCE (0.5%)
General Motors Acceptance
Corp.
6.85%, due 6/17/04.......... 870,000 844,013
------------
ELECTRIC UTILITIES (0.9%)
National Rural Utilities
Cooperative Finance Corp.
7.375%, due 2/10/03......... 1,665,000 1,664,151
------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
111
<PAGE> 114
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
CORPORATE BONDS (CONTINUED)
PRINCIPAL
AMOUNT VALUE
--------------------------
<S> <C> <C>
FINANCE (0.9%)
General Electric Capital
Corp.
7.00%, due 2/3/03........... $ 1,785,000 $ 1,769,417
------------
FINANCE--AUTO LOANS (0.9%)
Ford Motor Credit Corp.
7.375%, due 10/28/09........ 1,805,000 1,748,702
------------
FINANCIAL SERVICES (1.1%)
Salomon, Smith Barney
Holdings Inc.
6.25%, due 5/15/03.......... 695,000 669,361
Sears Roebuck Acceptance
Corp.
Medium-Term Note Series IV
6.36%, due 12/4/01.......... 1,360,000 1,330,950
------------
2,000,311
------------
FOREIGN GOVERNMENTS (1.7%)
Republic of South Africa
9.125%, due 5/19/09......... 1,105,000 1,065,485
United Mexican States
9.875%, due 2/1/10.......... 2,010,000 2,072,813
------------
3,138,298
------------
INDUSTRIAL (0.6%)
Tenaska Georgia Partners LP
9.50%, due 2/1/30 (a)....... 1,070,000 1,079,630
------------
INSURANCE (0.5%)
Conseco, Inc.
6.40%, due 6/15/01.......... 1,395,000 976,779
------------
INVESTMENT BANK/BROKERAGE (1.2%)
Morgan Stanley Dean Witter &
Co.
7.375%, due 4/15/03......... 2,210,000 2,199,171
------------
MEDIA (1.4%)
Turner Broadcasting, Inc.
8.375%, due 7/1/13.......... 2,513,000 2,536,069
------------
OIL--INTEGRATED INTERNATIONAL (0.6%)
Chevron Corp.
6.625%, due 10/1/04......... 1,150,000 1,119,560
------------
REAL ESTATE (0.9%)
United Dominion Realty Trust,
Inc.
8.625%, due 3/15/03......... 1,665,000 1,659,156
------------
REAL ESTATE--INVESTMENT/MORTGAGE (1.8%)
American Health Care Property
Investors, Inc.
7.05%, due 1/15/02.......... 3,385,000 3,276,782
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------
<S> <C> <C>
RETAIL STORES--GENERAL MERCHANDISE (0.4%)
Wal-Mart Stores, Inc.
6.875%, due 8/10/09......... $ 785,000 $ 756,214
------------
TELECOMMUNICATIONS--LONG DISTANCE (1.0%)
AT&T Corp.
6.00%, due 3/15/09.......... 2,100,000 1,870,050
------------
TRANSPORTATION (0.7%)
Atlas Air, Inc.
9.702%, due 1/2/10 (a)...... 1,415,000 1,399,393
------------
Total Corporate Bonds
(Cost $34,081,102).......... 32,965,119
------------
MORTGAGE-BACKED SECURITIES (2.7%)
COMMERCIAL MORTGAGE LOANS
(COLLATERALIZED MORTGAGE OBLIGATIONS) (2.7%)
Commercial Mortgage Asset
Trust
Series 1999-C2 Class A2
7.546%, due 11/17/32 (c).... 1,010,000 994,991
GMAC Commercial Mortgage
Securities Inc.
Series 1998-C2 Class A2
6.42%, due 5/15/35 (c)...... 635,000 585,775
Merrill Lynch Mortgage
Investors, Inc.
Series 1995-C2 Class A1
7.0074%, due 6/15/21
(b)(c)...................... 847,063 831,012
Series 1999-C1 Class A2
7.56%, due 11/15/31 (c)..... 1,000,000 990,010
Salomon Brothers Mortgage
Securities VII
Series 2000-FL1 Class A
6.4325%, due 5/1/13
(a)(b)(c)................... 1,712,619 1,713,132
------------
Total Mortgage-Backed
Securities
(Cost $5,175,411)........... 5,114,920
------------
U.S. GOVERNMENT &
FEDERAL AGENCIES (55.8%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (8.3%)
5.125%, due 2/13/04 (c)..... 9,735,000 9,062,019
5.625%, due 3/15/01 (c)..... 6,435,000 6,380,624
------------
15,442,643
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(MORTGAGE PASS-THROUGH SECURITIES) (11.3%)
7.50%, due 5/15/30 TBA (d).. 19,805,000 19,380,975
8.50%, due 5/15/30 TBA (d).. 1,675,000 1,699,087
------------
21,080,062
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
112
<PAGE> 115
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
U.S. GOVERNMENT &
FEDERAL AGENCIES (CONTINUED)
PRINCIPAL
AMOUNT VALUE
---------------------------
<S> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(MORTGAGE PASS-THROUGH SECURITIES) (20.3%)
6.50%, due 5/22/30 TBA (d).. $ 18,110,000 $ 16,966,897
7.00%, due 4/19/30 TBA (d).. 21,835,000 21,009,419
------------
37,976,316
------------
UNITED STATES TREASURY BONDS (10.2%)
6.00%, due 2/15/26.......... 165,000 160,411
6.25%, due 8/15/23-5/15/30
(e)....................... 11,765,000 11,802,266
7.50%, due 11/15/16 (e)..... 1,940,000 2,175,749
8.75%, due 8/15/20.......... 1,245,000 1,591,845
8.875%, due 8/15/17......... 524,000 662,944
11.25%, due 2/15/15......... 1,845,000 2,702,390
------------
19,095,605
------------
UNITED STATES TREASURY NOTES (5.7%)
5.25%, due 8/15/03.......... 1,000,000 960,780
5.875%, due 11/30/01(e)..... 8,005,000 7,906,218
6.25%, due 2/28/02.......... 1,795,000 1,780,981
------------
10,647,979
------------
Total U.S. Government &
Federal Agencies
(Cost $104,682,316)......... 104,242,605
------------
YANKEE BONDS (4.3%)
BANKS--MONEY CENTER (0.4%)
Barclays Bank PLC
7.40%, due 12/15/09......... 780,000 749,564
------------
BUILDING SOCIETIES (1.1%)
Abbey National PLC
7.95%, due 10/26/29......... 1,975,000 1,920,786
------------
MANUFACTURING--DIVERSIFIED (1.0%)
Tyco International Group S.A.
6.25%, due 6/15/03 (b)...... 2,000,000 1,893,140
------------
OIL & GAS--EQUIPMENT & SERVICES (1.1%)
Petroleum Geo-Services ASA
6.8413%, due 3/20/02
(b)(c)...................... 2,155,000 2,151,768
------------
OIL & GAS--EXPLORATION & PRODUCTION (0.7%)
Apache Finance Canada Corp.
7.75%, due 12/15/29......... 1,420,000 1,318,356
------------
Total Yankee Bonds
(Cost $8,245,399)........... 8,033,614
------------
Total Long-Term Investments
(Cost $176,137,366)......... 174,051,034
------------
SHORT-TERM INVESTMENTS (38.1%)
COMMERCIAL PAPER (38.1%)
American Express Credit Corp.
5.99%, due 5/8/00 (c)....... 5,615,000 5,606,570
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
AT&T Corp.
5.98%, due 5/3/00 (c)....... $ 6,350,000 $ 6,345,769
Associates Corp. of North
America
6.01%, due 5/10/00 (c)...... 4,385,000 4,376,922
Bellsouth Telecommunication
Inc.
6.00%, due 5/9/00 (c)....... 5,630,000 5,620,609
Chevron USA Inc.
6.00%, due 5/22/00.......... 3,210,000 3,197,676
General Electric Capital
Corp.
6.02%, due 5/2/00 (c)....... 4,000,000 3,997,990
Goldman Sachs Group Inc.
(The)
6.01%, due 5/15/00 (c)...... 4,770,000 4,757,237
6.18%, due 5/23/00.......... 3,000,000 2,987,638
KFW International Finance,
Inc.
6.00%, due 5/8/00 (c)....... 4,060,000 4,053,892
Merrill Lynch & Co.
6.04%, due 5/2/00 (c)....... 6,000,000 5,996,960
Salomon Smith Barney
Holdings, Inc.
6.00%, due 5/2/00 (c)....... 5,000,000 4,995,820
Societe Generale N.A., Inc.
6.00%, due 5/17/00 (c)...... 6,440,000 6,420,632
UBS Finance Delaware LLC
6.04%, due 5/1/00........... 5,930,000 5,928,010
Wells Fargo & Co.
6.04%, due 5/17/00 (c)...... 6,835,000 6,814,348
------------
Total Short-Term Investments
(Cost $71,100,073).......... 71,100,073
------------
Total Investments
(Cost $247,237,439) (f)..... 131.3% 245,151,107(g)
Liabilities in Excess of
Cash and Other Assets....... (31.3) (58,481,873)
------------ -----------
Net Assets................... 100.0% 186,669,234
============ ===========
</TABLE>
------------
(a) May be sold to institutional investors only.
(b) Floating rate. Rate shown is the rate in effect at April 30, 2000.
(c) Segregated as collateral for TBAs.
(d) TBA: Securities purchased on a forward commitment basis with an approximate
principal amount and maturity date. The actual principal amount and maturity
date will be determined upon settlement.
(e) Represents securities out on loan or a portion of which is out on loan.
(See Note 2(O))
(f) The cost for Federal income tax purposes is $247,288,585.
(g) At April 30, 2000 net unrealized depreciation was $2,137,478, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $314,673 and aggregate gross unrealized
depreciation for all investments on which there was an excess of cost over
market value of $2,452,151.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
113
<PAGE> 116
BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $247,237,439)............................. $245,151,107
Collateral held for securities loaned at value
(Note 2(O)).................................... 18,849,221
Receivables:
Investment securities sold..................... 9,243,723
Interest....................................... 1,590,764
Fund shares sold............................... 41,097
------------
Total assets............................... 274,875,912
------------
LIABILITIES:
Securities lending collateral (Note 2(O))........ 18,849,221
Payables:
Investment securities purchased................ 69,188,819
MainStay Management............................ 96,888
Custodian...................................... 8,726
Transfer agent................................. 4,904
Fund shares redeemed........................... 3,542
Accrued expenses................................. 54,578
------------
Total liabilities.......................... 88,206,678
------------
Net assets....................................... $186,669,234
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class............................ $ 19,916
Institutional Service Class.................... 311
Additional paid-in capital....................... 205,191,154
Accumulated undistributed net investment
income......................................... 3,512,730
Accumulated net realized loss on investments..... (19,968,545)
Net unrealized depreciation on investments....... (2,086,332)
------------
Net assets....................................... $186,669,234
============
Institutional Class
Net assets applicable to outstanding shares...... $183,812,200
============
Shares of capital stock outstanding.............. 19,916,019
============
Net asset value per share outstanding............ $ 9.23
============
Institutional Service Class
Net assets applicable to outstanding shares...... $ 2,857,034
============
Shares of capital stock outstanding.............. 310,709
============
Net asset value per share outstanding............ $ 9.20
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest....................................... $ 5,952,964
------------
Expenses:
Management..................................... 672,192
Professional................................... 22,144
Transfer agent................................. 15,206
Custodian...................................... 14,950
Registration................................... 12,212
Shareholder communication...................... 6,104
Service........................................ 3,745
Directors...................................... 1,806
Miscellaneous.................................. 35,982
------------
Total expenses before reimbursement........ 784,341
Expense reimbursement from Manager............. (91,132)
------------
Net expenses............................... 693,209
------------
Net investment income............................ 5,259,755
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investments................. (4,271,517)
Net change in unrealized depreciation on
investments.................................... 167,567
------------
Net realized and unrealized loss on
investments.................................... (4,103,950)
------------
Net increase in net assets resulting from
operations..................................... $ 1,155,805
============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
114
<PAGE> 117
MAINSTAY
INSTITUTIONAL FUNDS INC.
BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------- ------------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................... $ 5,259,755 $ 8,543,342 $ 10,198,132
Net realized gain (loss) on investments................. (4,271,517) (8,369,780) 5,448,970
Net change in unrealized appreciation (depreciation) on
investments........................................... 167,567 (3,487,234) (1,510,793)
------------- ------------- -------------
Net increase (decrease) in net assets resulting from
operations............................................ 1,155,805 (3,313,672) 14,136,309
------------- ------------- -------------
Dividends to shareholders:
From net investment income:
Institutional Class................................... (10,180,230) (1,803) (9,963,260)
Institutional Service Class........................... (163,803) (39) (233,262)
------------- ------------- -------------
Total dividends to shareholders..................... (10,344,033) (1,842) (10,196,522)
------------- ------------- -------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 19,688,763 12,117,127 27,884,675
Institutional Service Class........................... 1,393,349 5,168,118 4,359,791
Net asset value of shares issued to shareholders in
reinvestment of dividends:
Institutional Class................................... 10,034,611 1,777 9,817,383
Institutional Service Class........................... 147,953 31 181,161
------------- ------------- -------------
31,264,676 17,287,053 42,243,010
Cost of shares redeemed:
Institutional Class................................... (11,397,139) (16,799,256) (43,075,789)
Institutional Service Class........................... (2,273,076) (5,601,072) (1,791,909)
------------- ------------- -------------
Increase (decrease) in net assets derived from capital
share transactions.................................. 17,594,461 (5,113,275) (2,624,688)
------------- ------------- -------------
Net increase (decrease) in net assets................. 8,406,233 (8,428,789) 1,315,099
NET ASSETS:
Beginning of period....................................... 178,263,001 186,691,790 185,376,691
------------- ------------- -------------
End of period............................................. $ 186,669,234 $ 178,263,001 $ 186,691,790
============= ============= =============
Accumulated undistributed net investment income at end of
period.................................................. $ 3,512,730 $ 8,597,008 $ 1,610
============= ============= =============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
115
<PAGE> 118
BOND FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 9.75 $ 9.69 $ 9.91 $ 9.88 $ 9.71 $ 9.68
-------- -------- -------- -------- -------- --------
Net investment income....... 0.27 0.27 0.47 0.47 0.57 0.54
Net realized and unrealized
gain (loss) on
investments................ (0.23) (0.23) (0.63) (0.66) 0.20 0.20
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.04 0.04 (0.16) (0.19) 0.77 0.74
-------- -------- -------- -------- -------- --------
Less dividends from net
investment income.......... (0.56) (0.53) (0.00)(b) (0.00)(b) (0.57) (0.54)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period..................... $ 9.23 $ 9.20 $ 9.75 $ 9.69 $ 9.91 $ 9.88
======== ======== ======== ======== ======== ========
Total investment return..... 0.54%(a) 0.50%(a) (1.61%)(a) (1.92%)(a) 7.93% 7.73%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 5.87%+ 5.62%+ 5.55%+ 5.30%+ 5.57% 5.32%
Net expenses............... 0.75%+ 1.00%+ 0.75%+ 1.00%+ 0.75% 1.00%
Expenses (before
reimbursement)........... 0.85%+ 1.10%+ 0.85%+ 1.10%+ 0.86% 1.11%
Portfolio turnover rate..... 222% 222% 245% 245% 335% 335%
Net assets at end of period
(in 000's)................. $183,812 $ 2,857 $174,521 $ 3,742 $182,402 $ 4,290
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Total return is not annualized.
(b) Less than one cent per share.
(c) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
116
<PAGE> 119
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(c) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.51 $ 9.49 $ 9.85 $ 9.83 $ 8.93 $ 8.93 $ 9.98
-------- -------- -------- -------- -------- -------- --------
0.61 0.59 0.62 0.60 0.68 0.67 0.72
0.20 0.19 (0.34) (0.34) 0.92 0.90 (1.05)
-------- -------- -------- -------- -------- -------- --------
0.81 0.78 0.28 0.26 1.60 1.57 (0.33)
-------- -------- -------- -------- -------- -------- --------
(0.61) (0.59) (0.62) (0.60) (0.68) (0.67) (0.72)
-------- -------- -------- -------- -------- -------- --------
$ 9.71 $ 9.68 $ 9.51 $ 9.49 $ 9.85 $ 9.83 $ 8.93
======== ======== ======== ======== ======== ======== ========
8.57%.. 8.21% 2.80% 2.62% 17.88% 17.55% (3.31%)
6.21% 5.96% 6.10% 5.85% 6.62% 6.37% 7.13%
0.75%.. 1.00% 0.75% 1.00% 0.75% 1.00% 0.75%
0.85% 1.10% 0.86% 1.11% 0.86% 1.11% 0.82%
338% 338% 398% 398% 470% 470% 478%
$183,846 $ 1,531 $177,009 $ 1,597 $193,518 $ 749 $202,970
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
117
<PAGE> 120
INDEXED BOND FUND
--------------------------------------------------------------------------------
During the six months ended April 30, 2000, a number of factors influenced
domestic bond markets. In an effort to slow economic growth and curb inflation,
the Federal Reserve raised the targeted federal funds rate three times--in
November, February, and March. Even so, economic growth and consumer spending
remained strong, which suggests that additional Federal Reserve action may yet
be on the horizon.
While rising rates tend to depress bond prices, other forces helped strengthen
bond returns. At the end of 1999, many investors sought U.S. Treasury securities
in a flight to quality as rumors circulated about the downside potential of Y2K
computer glitches. Once the new year was underway, the government's Treasury
buyback program reduced the supply of U.S. government securities, which helped
to stabilize prices to a degree. Weakness in the stock market during March and
April also increased the demand for bonds, which had a positive impact on
returns.
Rising interest rates caused yield spreads to widen in the corporate bond sector
as higher capital costs reshaped the outlook for corporate earnings.
Mortgage-backed securities benefited as rising rates helped reduce supply and
move investors out of corporate bonds into high-quality alternatives.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Indexed Bond
Fund returned 1.47% for Institutional Class shares and 1.37% for Service Class
shares. Both share classes outperformed the 1.33% return of the average
Lipper(1) general U.S. government fund over the same period.
For the six-month reporting period, Institutional Class shares outperformed and
Service Class shares underperformed the 1.42% return of the Salomon Smith Barney
Broad Investment Grade (BIG) Bond Index.(2) Since the Fund incurs real-world
fees and expenses that a hypothetical index does not, generally investors would
expect the Fund to slightly lag the Index. The slight outperformance of
Institutional Class shares resulted from specific bonds the Fund managers
selected as a representative sample of the Index.
As of April 30, 2000, the Fund's portfolio closely tracked its benchmark, with a
yield to maturity of 7.35 years (versus 7.43 years for the BIG Index), an
effective duration of 4.98 years (versus 4.96 years for the Index), and an
average coupon of 6.78% (versus 6.82% for the Index).
STRENGTHS AND WEAKNESSES
Treasury securities (+2.59%) and mortgage-related issues (+1.28%) were the best-
performing sectors of the bond market during the reporting period, as a result
of reduced supply, a positive flow of funds, and flight-to-quality buying.
Corporate securities suffered a variety of setbacks, as interest rates continued
to rise throughout the reporting period. Bond investors felt the impact of
rising capital costs, with corporate spreads widening dramatically during the
first quarter of 2000. Even high-quality blue-chip issues were affected and the
sector as a whole returned a meager 0.17% for the six-month reporting period.
Agency and mortgage-backed securities were particularly reactive to remarks from
regulators, politicians, and the Treasury. As a result, agency securities were
the worst-performing sector in March, although for the six-month period and the
first calendar quarter of 2000 they still managed to outperform corporate bonds
and BBB-rated securities.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent fund performance monitor. Its rankings are
based on total returns with capital gains and dividends reinvested.
(2) The Salomon Smith Barney Broad Investment Grade (BIG) Bond Index is an
unmanaged index that is considered to be representative of the U.S. bond
market. Returns reflect the reinvestment of all income and capital gains. An
investment cannot be made directly into an index.
118
<PAGE> 121
LOOKING AHEAD
Rapid economic growth and various inflation indicators suggest that the Federal
Reserve may continue to tighten the monetary supply in the coming
months--possibly even more aggressively than during the reporting period.
Whatever happens to interest rates or bond prices, we will continue to seek to
provide investment results that correspond to the total-return performance of
fixed-income securities in the aggregate, as represented by the Salomon Smith
Barney Broad Investment Grade Bond Index.
JEFFERSON C. BOYCE
Portfolio Manager
Monitor Capital Advisors LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in foreign securities may be subject to greater risks than domestic
investments. These risks include currency fluctuations, changes in U.S. or
foreign tax or currency laws, and changes in monetary policies and economic and
political conditions in foreign countries.
119
<PAGE> 122
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INDEXED BOND FUND VS
SALOMON SMITH BARNEY BIG BOND INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY BIG BOND MAINSTAY INSTITUTIONAL INDEXED BOND
INDEX FUND
----------------------------- -----------------------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 289,968 286,750
92 311,935 307,085
93 342,897 336,674
94 333,138 325,086
95 394,858 383,841
96 409,133 393,620
97 448,509 429,101
98 487,598 464,316
99 483,528 454,206
00 as of 4/30/00 492,667 463,802
</TABLE>
Source: Lipper Inc.
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
INDEXED BOND FUND VS
SALOMON SMITH BARNEY BIG BOND INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY BIG BOND MAINSTAY INSTITUTIONAL INDEXED BOND
INDEX FUND
----------------------------- -----------------------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 289,968 286,750
92 311,935 307,085
93 342,897 336,674
94 333,138 325,086
95 394,858 383,515
96 409,133 392,477
97 448,509 426,819
98 487,598 460,362
99 483,528 449,489
00 as of 4/30/00 492,667 458,985
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period
One year Five years Since inception
--------------------------------------------------------------------------------------------------------------
Indexed Bond Fund Institutional Class 1.47% 0.90% 6.07% 6.84%
Indexed Bond Fund Service Class(+) 1.37 0.81 5.81 6.72
Average Lipper general U.S. government
fund(++) 1.33 0.19 5.78 6.38
Salomon Smith Barney BIG Bond Index(sec.) 1.42 1.17 6.78 7.54
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
14.7 7.09 9.64 -3.44 18.07 2.55 9.01 8.21 -1.56
2000
----
1.47
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized basis
of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class from
the Fund's inception (1/2/91) up to 12/31/94. Performance figures for these
two classes will vary after this date based on differences in their expense
structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Salomon Smith Barney Broad Investment Grade (BIG) Bond Index is an
unmanaged index that is considered to be representative of the U.S. bond
market. Returns reflect the reinvestment of all income and capital gains.
An investment cannot be made directly into an index.
120
<PAGE> 123
MAINSTAY
INSTITUTIONAL FUNDS INC.
INDEXED BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
LONG-TERM INVESTMENTS (96.9%)+
CORPORATE BONDS (17.0%)
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
AUTO LEASES (0.8%)
Ryder System Inc.
9.875%, due 5/15/17............ $1,000,000 $ 1,075,000
------------
BEVERAGES--SOFT DRINKS (0.4%)
Coca-Cola Enterprises, Inc.
8.50%, due 2/1/22.............. 500,000 523,750
------------
BROADCAST/MEDIA (0.9%)
Cox Communications, Inc.
6.50%, due 11/15/02............ 1,200,000 1,159,500
------------
CHEMICALS (0.6%)
DuPont (E.I.) de Nemours & Co.
8.125%, due 3/15/04............ 800,000 820,000
------------
COMMERCIAL SERVICES SPECIALIZED (0.5%)
Hertz Corp.
7.00%, due 7/15/03............. 700,000 688,625
------------
ELECTRIC POWER COMPANIES (1.3%)
PP & L Resources, Inc.
7.30%, due 3/1/24.............. 1,000,000 932,500
Texas Utility Electric Co.
8.25%, due 4/1/04.............. 800,000 811,000
------------
1,743,500
------------
ELECTRONICS--SEMICONDUCTORS (1.2%)
Motorola, Inc.
8.40%, due 8/15/31............. 1,500,000 1,591,875
------------
ENTERTAINMENT (0.4%)
Walt Disney Co. (The)
6.75%, due 3/30/06............. 600,000 581,250
------------
FINANCE (3.0%)
American Express Credit Corp.
6.125%, due 11/15/01........... 2,000,000 1,965,000
Commercial Credit Co.
8.70%, due 6/15/10............. 450,000 473,625
KFW International Finance, Inc.
9.125%, due 5/15/01............ 500,000 510,000
Private Export Funding Corp.
8.35%, due 1/31/01............. 1,000,000 1,013,750
------------
3,962,375
------------
INSURANCE (2.0%)
Aetna Services Inc.
7.625%, due 8/15/26............ 3,000,000 2,685,000
------------
MACHINERY--DIVERSIFIED (0.4%)
Caterpillar, Inc.
9.00%, due 4/15/06............. 500,000 530,625
------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
-----------------------
<CAPTION>
<S> <C> <C>
OIL--INTEGRATED DOMESTIC (0.8%)
USX--Marathon Corp.
7.20%, due 2/15/04............. $1,100,000 $ 1,067,000
------------
OIL--INTEGRATED INTERNATIONAL (0.3%)
Texaco Capital Inc.
9.75%, due 3/15/20............. 350,000 411,687
------------
PAPER & FOREST PRODUCTS (0.5%)
Scott Paper Co.
7.00%, due 8/15/23............. 650,000 591,500
------------
RETAIL STORES--APPAREL (1.2%)
Limited, Inc.
7.50%, due 3/15/23............. 1,900,000 1,624,500
------------
TELECOMMUNICATIONS--LONG DISTANCE (1.9%)
AT&T Corp.
8.625%, due 12/1/31............ 1,500,000 1,490,625
Sprint Corp.
9.50%, due 4/1/03.............. 1,000,000 1,046,250
------------
2,536,875
------------
UTILITY--ELECTRIC & GAS (0.8%)
Duke Capital Corp.
6.25%, due 7/15/05............. 1,200,000 1,114,500
------------
Total Corporate Bonds
(Cost $23,982,918)............. 22,707,562
------------
INTERNATIONAL
CORPORATE BONDS (2.0%)
BANKS (2.0%)
ABN Amro Bank, NV Chicago Branch
7.55%, due 6/28/06............. 800,000 789,000
Bayerische Landesbank
Girozentrale New York Branch
6.20%, due 2/9/06.............. 1,900,000 1,769,375
International Bank for
Reconstruction & Development
(zero coupon), due 3/11/31..... 1,000,000 117,500
------------
Total International Corporate
Bonds
(Cost $2,808,601).............. 2,675,875
------------
U.S. GOVERNMENT &
FEDERAL AGENCIES (74.9%)
FEDERAL HOME LOAN BANK
(MEDIUM TERM NOTE) (1.1%)
8.00%, due 9/11/01............. 1,400,000 1,418,802
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (0.8%)
6.45%, due 4/29/09............. 1,100,000 1,014,464
------------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
121
<PAGE> 124
INDEXED BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
U.S. GOVERNMENT &
FEDERAL AGENCIES (CONTINUED)
PRINCIPAL
AMOUNT VALUE
-------------------------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION (MORTGAGE
PASS-THROUGH SECURITIES) (13.2%)
6.00%, due 9/1/02-6/1/29....... $2,332,915 $ 2,169,210
6.50%, due 10/1/01-7/1/29...... 8,890,495 8,416,967
7.00%, due 8/1/03-1/1/30....... 4,863,704 4,685,522
7.50%, due 9/1/11-2/1/30....... 2,177,351 2,139,358
8.00%, due 7/1/26.............. 329,296 329,296
------------
17,740,353
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (2.2%)
(zero coupon), due 7/5/14...... 2,500,000 902,125
7.25%, due 1/15/00............. 2,000,000 1,991,460
------------
2,893,585
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (MORTGAGE
PASS-THROUGH SECURITIES) (16.4%)
5.50%, due 3/1/05.............. 1,100,170 1,026,249
6.00%, due 5/1/29.............. 4,973,706 4,502,746
6.50%, due 7/1/03-10/1/28...... 9,178,187 8,612,184
7.00%, due 5/1/11-1/1/28....... 2,438,410 2,349,568
7.50%, due 11/1/26-1/1/28...... 1,251,076 1,224,091
8.00%, due 7/1/07-1/1/28....... 3,032,104 3,030,114
9.50%, due 3/1/16-9/1/19....... 1,123,960 1,178,753
------------
21,923,705
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION I (MORTGAGE
PASS-THROUGH SECURITIES) (8.3%)
6.50%, due 2/15/29-8/15/29..... 5,395,740 5,055,108
7.00%, due 3/15/07-1/15/30..... 3,081,889 2,976,416
7.50%, due 8/15/08-1/15/30..... 2,565,749 2,531,403
8.00%, due 6/15/26-9/15/27..... 295,773 296,513
8.50%, due 7/15/26-11/15/26.... 311,596 317,438
------------
11,176,878
------------
TENNESSEE VALLEY AUTHORITY (0.7%)
Power Board 1994 Series A
7.85%, due 6/15/44............. 1,000,000 990,000
------------
UNITED STATES TREASURY BONDS (12.4%)
5.25%, due 2/15/29............. 630,000 553,417
7.125%, due 2/15/23............ 600,000 662,880
7.25%, due 5/15/16............. 1,500,000 1,641,540
7.50%, due 11/15/16............ 800,000 897,216
7.625%, due 11/15/22........... 400,000 465,748
8.00%, due 11/15/21............ 1,000,000 1,203,590
8.125%, due 8/15/19-5/15/21.... 1,300,000 1,571,681
8.50%, due 2/15/20............. 400,000 498,968
8.75%, due 5/15/17-8/15/20..... 1,500,000 1,903,900
8.875%, due 2/15/19............ 600,000 768,306
9.375%, due 2/15/06............ 530,000 598,598
9.875%, due 11/15/15........... 600,000 808,014
10.375%, due 11/15/12.......... 500,000 609,350
11.25%, due 2/15/15............ 400,000 585,884
11.875%, due 11/15/03.......... 500,000 580,830
12.75%, due 11/15/10........... 400,000 509,956
13.125%, due 5/15/01........... 1,000,000 1,067,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
UNITED STATES TREASURY BONDS (CONTINUED)
13.375%, due 8/15/01........... $1,200,000 $ 1,297,524
14.25%, due 2/15/02............ 300,000 337,419
------------
16,562,321
------------
UNITED STATES TREASURY NOTES (17.7%)
4.75%,due 11/15/08............. 2,000,000 1,787,800
5.25%, due 5/15/04............. 3,000,000 2,861,550
5.625%, due 12/31/02........... 400,000 390,092
5.75%, due 8/15/03............. 1,600,000 1,559,696
6.00%, due 8/15/09............. 650,000 634,966
6.125%, due 8/15/07............ 1,400,000 1,372,014
6.25%, due 4/30/01-2/15/03..... 9,200,000 9,151,700
6.375% , due 8/15/02........... 1,000,000 993,900
6.50% , due 10/15/06........... 1,200,000 1,198,560
7.50%, due 11/15/01-2/15/05.... 3,750,000 3,810,372
------------
23,760,650
------------
UNITED STATES TREASURY NOTES (SECURED
STRIPPED BONDS) (2.1%)
(zero coupon), due
2/15/01-2/15/05................ 3,500,000 2,793,885
------------
Total U.S. Government &
Federal Agencies
(Cost $102,522,495)............ 100,274,643(b)
------------
YANKEE BONDS (3.0%)
BANKS (1.4%)
Australia & New Zealand Banking
Group, Ltd.
7.55%, due 9/15/06............. 700,000 697,375
Inter-American Development Bank
6.80%, due 10/15/25............ 1,200,000 1,134,000
------------
1,831,375
------------
COMMUNICATIONS EQUIPMENT (0.4%)
Nortel Networks Corp.
8.75%, due 6/12/01............. 500,000 506,875
------------
CONSUMER FINANCE (0.4%)
Japan Financial Corp.
8.70%, due 7/30/01............. 600,000 609,750
------------
FOREIGN GOVERNMENT (0.8%)
Ontario Hydro
7.45%, due 3/31/13............. 500,000 494,375
Quebec (Province of)
7.50%, due 7/15/23............. 600,000 588,000
------------
1,082,375
------------
Total Yankee Bonds
(Cost $4,175,392).............. 4,030,375
------------
Total Long-Term Investments
(Cost $133,489,406)............ 129,688,455
------------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
122
<PAGE> 125
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (1.7%)
PRINCIPAL
AMOUNT VALUE
<CAPTION>
-------------------------
<S> <C> <C>
U.S. GOVERNMENT (1.7%)
United States Treasury Bills
5.64%, due 7/13/00 (a)......... $2,200,000 $ 2,174,148
5.72%, due 7/20/00 (a)......... 100,000 98,689
------------
Total Short-Term Investments
(Cost $2,272,837).............. 2,272,837
------------
Total Investments
(Cost $135,762,243) (c)........ 98.6% 131,961,292(d)
Cash and Other Assets,
Less Liabilities............... 1.4 1,912,542
---------- ----------
Net Assets...................... 100.0% $133,873,834
========== ==========
</TABLE>
<TABLE>
<CAPTION>
FUTURES CONTRACTS (0.0%)(e)
CONTRACTS UNREALIZED
LONG (DEPRECIATION)(f)
-----------------------------
<S> <C> <C>
United States Treasury Note
June 2000 (5 Year).......... 14 $(18,671)
United States Treasury Note
June 2000 (10 Year)........ 5 (6,347)
United States Treasury Bond
June 2000 (30 Year)........ 4 (5,853)
--------
Total Futures Contracts
(Settlement Value
$2,267,980) (b)............ $(30,871)
========
</TABLE>
------------
(a) Segregated or partially segregated as collateral for futures contracts.
(b) The combined market value of U.S. Government and Federal Agencies
Investments and the value of securities purchased under U.S. Treasury
futures contracts represents 76.6% of net assets.
(c) The cost stated also represents the aggregate cost for Federal income tax
purposes.
(d) At April 30, 2000, net unrealized depreciation was $3,800,951, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized appreciation for all investments on which there was an excess of
market value over cost of $1,253,203 and aggregate unrealized depreciation
for all investments on which there was an excess of cost over market value
of $5,054,154.
(e) Less than one tenth of a percent.
(f) Represents the difference between the value of the contracts at the time
they were opened and the value at April 30, 2000.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
123
<PAGE> 126
INDEXED BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $135,762,243)............................. $131,961,292
Cash............................................. 22,276
Receivables:
Interest....................................... 1,975,450
Fund shares sold............................... 32,294
------------
Total assets............................... 133,991,312
------------
LIABILITIES:
Payables:
MainStay Management............................ 39,804
Variation margin on futures contracts.......... 17,318
Custodian...................................... 5,226
Transfer agent................................. 4,724
Fund shares redeemed........................... 3,847
Accrued expenses................................. 46,559
------------
Total liabilities.......................... 117,478
------------
Net assets....................................... $133,873,834
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class............................ $ 12,856
Institutional Service Class.................... 331
Additional paid-in capital....................... 139,685,504
Accumulated undistributed net investment
income......................................... 3,013,507
Accumulated net realized loss on investments and
futures contracts.............................. (5,006,542)
Net unrealized depreciation on investments and
futures contracts.............................. (3,831,822)
------------
Net assets....................................... $133,873,834
============
Institutional Class
Net assets applicable to outstanding shares...... $130,518,990
============
Shares of capital stock outstanding.............. 12,855,826
============
Net asset value per share outstanding............ $ 10.15
============
Institutional Service Class
Net assets applicable to outstanding shares...... $ 3,354,844
============
Shares of capital stock outstanding.............. 330,661
============
Net asset value per share outstanding............ $ 10.15
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest....................................... $ 5,011,100
------------
Expenses:
Management..................................... 350,783
Professional................................... 20,898
Custodian...................................... 19,030
Transfer agent................................. 14,635
Pricing Service................................ 14,508
Registration................................... 12,518
Shareholder communication...................... 5,109
Service........................................ 3,979
Directors...................................... 1,489
Miscellaneous.................................. 8,143
------------
Total expenses before
reimbursement............................. 451,092
Expense reimbursement from Manager............. (94,975)
------------
Net expenses............................... 356,117
------------
Net investment income............................ 4,654,983
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss from:
Security transactions.......................... (1,634,262)
Futures transactions........................... (47,216)
------------
Net realized loss on investments................. (1,681,478)
------------
Net change in unrealized depreciation on
investments:
Security transactions.......................... (926,847)
Futures transactions........................... (33,898)
------------
Net unrealized loss on investments............... (960,745)
------------
Net realized and unrealized loss on
investments.................................... (2,642,223)
------------
Net increase in net assets resulting from
operations..................................... $ 2,012,760
============
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
124
<PAGE> 127
MAINSTAY
INSTITUTIONAL FUNDS INC.
INDEXED BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the years ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................... $ 4,654,983 $ 8,505,562 $ 9,484,561
Net realized loss on investments and futures
contracts............................................. (1,681,478) (1,634,425) (67,058)
Net change in unrealized appreciation (depreciation) on
investments and futures contracts..................... (960,745) (9,396,705) 2,292,755
-------------- -------------- --------------
Net increase (decrease) in net assets resulting from
operations............................................ 2,012,760 (2,525,568) 11,710,258
-------------- -------------- --------------
Dividends to shareholders:
From net investment income:
Institutional Class................................... (9,983,098) -- (9,236,677)
Institutional Service Class........................... (218,895) -- (219,665)
-------------- -------------- --------------
Total dividends to shareholders..................... (10,201,993) -- (9,456,342)
-------------- -------------- --------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 7,121,213 25,386,219 61,976,290
Institutional Service Class........................... 494,243 772,435 1,367,196
Net asset value of shares issued to shareholders in
reinvestment of dividends:
Institutional Class................................... 9,947,786 -- 9,210,122
Institutional Service Class........................... 218,891 -- 219,629
-------------- -------------- --------------
17,782,133 26,158,654 72,773,237
Cost of shares redeemed:
Institutional Class................................... (23,966,048) (33,747,011) (35,070,585)
Institutional Service Class........................... (525,416) (1,238,448) (768,339)
-------------- -------------- --------------
Increase (decrease) in net assets derived from capital
share transactions.................................. (6,709,331) (8,826,805) 36,934,313
-------------- -------------- --------------
Net increase (decrease) in net assets................. (14,898,564) (11,352,373) 39,188,229
NET ASSETS:
Beginning of period....................................... 148,772,398 160,124,771 120,936,542
-------------- -------------- --------------
End of period............................................. $ 133,873,834 $ 148,772,398 $ 160,124,771
============== ============== ==============
Accumulated undistributed net investment income at end of
period.................................................. $ 3,013,507 $ 8,560,517 $ --
============== ============== ==============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
125
<PAGE> 128
INDEXED BOND FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period................... $ 10.76 $ 10.74 $ 10.93 $ 10.92 $ 10.74 $ 10.74
-------- -------- -------- -------- -------- --------
Net investment income....... 0.36 0.35 0.62 0.61 0.69 0.66
Net realized and unrealized
gain (loss) on
investments................ (0.22) (0.22) (0.79) (0.79) 0.19 0.18
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.14 0.13 (0.17) (0.18) 0.88 0.84
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
From net investment income.. (0.75) (0.72) -- -- (0.69) (0.66)
From net realized gain on
investments................ -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.............. (0.75) (0.72) -- -- (0.69) (0.66)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period..................... $ 10.15 $ 10.15 $ 10.76 $ 10.74 $ 10.93 $ 10.92
======== ======== ======== ======== ======== ========
Total investment return..... 1.47%(a) 1.37%(a) (1.56%)(a) (1.65%)(a) 8.21% 7.86%
Ratios (to average net
assets)/Supplemental Data:
Net investment income...... 6.64%+ 6.39%+ 6.42%+ 6.17%+ 6.37% 6.12%
Net expenses............... 0.50%+ 0.75%+ 0.50%+ 0.75%+ 0.50% 0.75%
Expenses (before
reimbursement)........... 0.64%+ 0.89%+ 0.62%+ 0.87%+ 0.65% 0.90%
Portfolio turnover rate..... 10% 10% 31% 31% 14% 14%
Net assets at end of period
(in 000's)................. $130,519 $ 3,355 $145,427 $ 3,345 $156,244 $ 3,881
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Total return is not annualized.
(b) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
126
<PAGE> 129
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(b) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10.52 $ 10.52 $ 10.99 $ 10.99 $ 10.06 $ 10.06 $ 11.08
-------- -------- -------- -------- -------- -------- --------
0.73 0.70 0.76 0.74 0.82 0.81 0.65
0.22 0.22 (0.48) (0.48) 1.00 1.00 (1.03)
-------- -------- -------- -------- -------- -------- --------
0.95 0.92 0.28 0.26 1.82 1.81 (0.38)
-------- -------- -------- -------- -------- -------- --------
(0.73) (0.70) (0.75) (0.73) (0.82) (0.81) (0.64)
-- -- -- -- (0.07) (0.07) --
-------- -------- -------- -------- -------- -------- --------
(0.73) (0.70) (0.75) (0.73) (0.89) (0.88) (0.64)
-------- -------- -------- -------- -------- -------- --------
$ 10.74 $ 10.74 $ 10.52 $ 10.52 $ 10.99 $ 10.99 $ 10.06
======== ======== ======== ======== ======== ======== ========
9.01% 8.75% 2.55% 2.34% 18.07% 17.97% (3.44%)
6.60% 6.35% 6.21% 5.96% 6.38% 6.13% 6.13%
0.50% 0.75% 0.50% 0.75% 0.50% 0.75% 0.50%
0.65% 0.90% 0.65% 0.90% 0.63% 0.88% 0.61%
32% 32% 312% 312% 284% 284% 274%
$117,922 $ 3,015 $109,482 $ 2,764 $163,219 $ 471 $169,404
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
127
<PAGE> 130
Short-Term Bond Fund
--------------------------------------------------------------------------------
During the six months ended April 30, 2000, the Federal Reserve raised the
targeted Federal Funds rate three times in successive 25-basis-point moves in
November, February, and March. While rising interest rates typically have a
negative impact on long-term bond prices, short-term bond investors were able to
capture progressively higher yields as their investments matured and the
proceeds were reinvested at higher rates.
During the reporting period, a Treasury buy-back program helped strengthen
long-term government bond prices in general. Widespread market anticipation of
the Federal Reserve's rate adjustments helped keep short-term bond prices within
reasonable parameters during the reporting period.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Short-Term Bond
Fund returned 1.63% for Institutional Class Shares and 1.58% for Service Class
shares. This compared with a 2.07% return for the average Lipper(1) short-term
U.S. government fund, the 1.42% return for the Lehman 2-Year Treasury Index, and
a 1.82% return for the Salomon Smith Barney 1-3 Year Treasury Index(2) over the
same period. The Fund's defensive positioning during portions of the reporting
period may help to explain its performance relative to its peers, while specific
security selection helped the Fund outperform two-year Treasuries.
Both of the Fund's share classes received an overall four-star rating out of
1,696 taxable bond funds by Morningstar(3) as of April 30, 2000. Institutional
Class shares were rated five stars and Service Class shares were rated four
stars out of 1,696 taxable bond funds for the three-year period then ended, and
both share classes were rated four stars out of 1,292 taxable bond funds for the
five years then ended.
FOCUS ON HIGH QUALITY
Anticipating rising interest rates and strong demand for higher-quality
investments as the year 2000 approached, the Fund maintained a relatively
defensive posture during November and December of 1999, which provided
protection for the portfolio in that environment. The Fund ended calendar 1999
with over 95% of the portfolio invested in government, AAA-rated, or
cash-equivalent securities.
During the first four months of 2000, Treasuries were the best-performing
short-term bond sector, and the Fund's strong commitment to Treasury securities,
which accounted for approximately half of the Fund's portfolio as of April 30,
2000, contributed positively to the Fund's performance. Over the same four-month
period, the Fund's total return was ahead of the 2-year Treasury bond by more
than 40 basis points and slightly ahead of the Salomon Brothers Smith Barney 1-3
Year Treasury Index.
At the end of the reporting period, the quality of most of the securities in the
Fund's investment portfolio was very high. The portfolio continues to invest in
short-maturity, high-quality corporate bonds, mortgage-backed, and U.S. agency
securities. These issues may provide higher yields than comparable Treasury
securities under certain market conditions, and they contributed positively to
the Fund's performance. We anticipate adding to these securities when rising
interest rates start to plateau.
LOOKING AHEAD
We believe that the Federal Reserve will continue to raise short-term interest
rates. We are monitoring inflation, employment, and investor perceptions and
their potential
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(2) The Salomon Smith Barney 1-3 Year Treasury Index is an unmanaged index that
is generally considered to be representative of the U.S. short-term bond
market. Returns reflect reinvestment of all income and capital gains. An
investment cannot be made directly into an index.
(3) Morningstar, Inc. is an independent fund performance monitor. Its ratings
reflect historic risk-adjusted performance, taking fees and sales charges
into account, and may change monthly. Its ratings of one (low) to five
(high) stars are based on a fund's three-, five-, and 10-year average annual
returns (if applicable) in excess of 90-day Treasury bill returns, and a
risk factor that reflects fund performance below 90-day Treasury bill
returns. The top 10% of funds in a broad asset class receive five stars, the
next 22.5% receive four stars, the middle 35% receive three stars, the next
22.5% receive two stars, and the bottom 10% receive one star. Past
performance is no guarantee of future results.
128
<PAGE> 131
--------------------------------------------------------------------------------
to influence demand for short-term securities. Whatever the markets and the
economy may bring, the Fund will continue to seek to maximize total return,
consistent with liquidity, preservation of capital, and investment in short-term
debt securities.
EDWARD J. MUNSHOWER
CHRISTOPHER HARMS
Portfolio Managers
MacKay Shields LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
The Fund's net asset value will fluctuate and you could lose money by investing
in the Fund. The Fund may invest in derivatives, which may increase the
volatility of the Fund's net asset value and may result in a loss to the Fund.
Investments in the Fund are not guaranteed, even though some of the Fund's
investments are guaranteed as to the payment of principal and interest by the
U.S. government or its agencies or instrumentalities.
129
<PAGE> 132
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
SHORT-TERM BOND FUND VS
SALOMON SMITH BARNEY 1-3 YEAR TREASURY INDEX
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
==================================
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY 1-3 YEAR
TREASURY INDEX SHORT-TERM BOND FUND
----------------------------- --------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 279,142 278,250
92 296,747 294,765
93 312,740 311,468
94 314,415 311,813
95 348,173 343,849
96 365,888 360,374
97 390,193 382,476
98 417,476 406,824
99 430,177 416,592
00 as of 4/30/00 436,630 422,240
</TABLE>
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
SHORT-TERM BOND FUND VS
SALOMON SMITH BARNEY 1-3 YEAR TREASURY INDEX
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
============================
<TABLE>
<CAPTION>
SALOMON SMITH BARNEY 1-3 YEAR
TREASURY INDEX SHORT-TERM BOND FUND
----------------------------- --------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 279,142 278,250
92 296,747 294,765
93 312,740 311,468
94 314,415 311,813
95 348,173 343,197
96 365,888 358,490
97 390,193 379,941
98 417,476 402,666
99 430,177 411,716
00 as of 4/30/00 436,630 416,839
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SIX-MONTH PERIOD ONE YEAR FIVE YEARS SINCE INCEPTION
-----------------------------------------------------------------------------------------------------------------
Short-Term Bond Fund Institutional Class 1.63% 3.02% 5.39% 5.77%
Short-Term Bond Fund Service Class(+) 1.58 2.76 5.14 5.63
Average Lipper short U.S. government fund(++) 2.07 3.24 5.10 5.44
Salomon Smith Barney 1-3 Year Treasury Index 1.82 3.62 5.91 6.16
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11.3 5.94 5.67 0.11 10.27 4.81 6.13 6.37 2.12
2000
----
1.63
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN. INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
(*) Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends, and, for the
Service Class shares, include the service fee of .25% on an annualized basis
of the average daily net asset value of the Service Class shares.
(+) Performance figures for the Service Class, first offered to the public on
1/1/95, include the historical performance of the Institutional Class from
the Fund's inception (1/2/91) up to 12/31/94. Performance figures for these
two classes will vary after this date based on differences in their expense
structures.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
(sec.) The Salomon Smith Barney 1-3 Year Treasury Index is an unmanaged index
that is generally considered to be representative of the U.S. short-term
bond market. Returns reflect reinvestment of all income and capital
gains. An investment cannot be made directly into an index.
130
<PAGE> 133
MAINSTAY
INSTITUTIONAL FUNDS INC.
SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
LONG-TERM INVESTMENTS (98.0%)+
ASSET-BACKED SECURITIES (20.6%)
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
AUTO LEASES (1.0%)
Ford Credit Auto Owner Trust
Series 2000-B Class A3
6.97%, due 4/15/03.............. $ 320,000 $ 318,768
-----------
CONSUMER LOANS (2.3%)
Green Tree Financial Corp.
Series 1999-4 Class A4
6.64%, due 5/1/31............... 775,000 749,944
-----------
ELECTRIC UTILITIES (3.8%)
Boston Edison Co.
Series 1999-1 Class A2
6.45%, due 9/15/05.............. 1,045,000 1,022,428
PECO Energy Transition Trust
Series 2000-A Class A2
7.30%, due 9/1/02............... 205,000 204,611
-----------
1,227,039
-----------
EQUIPMENT LOANS (7.4%)
Case Equipment Loan Trust
Series 1999-A Class A4
5.77%, due 8/15/05.............. 1,110,000 1,072,381
CNH Case Equipment Trust
Series 2000-A Class B
7.32%, due 2/15/07.............. 271,874 270,381
IKON Receivables LLC
Series 1999-1 Class A3
5.99%, due 5/15/05.............. 1,065,000 1,050,644
-----------
2,393,406
-----------
HOME EQUITY LOANS (1.6%)
Conseco Finance
Securitizations Corp.
Series 1999-F Class A2
6.72%, due 10/15/14............. 515,000 509,170
-----------
LEISURE TIME (3.3%)
Harley-Davidson Eaglemark
Motorcycle Trust
Series 1999-1 Class A2
5.52%, due 2/15/05.............. 1,120,000 1,085,504
-----------
RECREATIONAL VEHICLES (1.2%)
Fleetwood Credit Corp.
Grantor Trust
Series 1996-A Class A
6.75%, due 10/17/11............. 413,681 408,340
-----------
Total Asset-Backed Securities
(Cost $6,833,001)............... 6,692,171
-----------
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
CORPORATE BONDS (6.2%)
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
BEVERAGE--ALCOHOLIC (1.7%)
Seagram, Joseph E. & Sons Inc.
5.79%, due 4/15/01.............. $ 575,000 $ 565,357
-----------
FINANCE (1.0%)
General Electric Capital Corp.
7.00%, due 2/3/03............... 315,000 312,250
-----------
INVESTMENT BANK/BROKERAGE (3.5%)
Donaldson, Lufkin & Jenrette Inc.
5.875%, due 4/1/02.............. 745,000 718,910
Morgan Stanley Dean Witter & Co.
7.375%, due 4/15/03............. 415,000 412,967
-----------
1,131,877
-----------
Total Corporate Bonds
(Cost $2,047,988)............... 2,009,484
-----------
U.S. GOVERNMENT &
FEDERAL AGENCIES (70.1%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (22.0%)
5.375%, due 3/15/02 (a)......... 4,045,000 3,930,162
5.625%, due 3/15/01............. 3,230,000 3,202,707
-----------
7,132,869
-----------
UNITED STATES TREASURY BOND (8.8%)
11.625%, due 11/15/02 (a)....... 2,585,000 2,874,598
-----------
UNITED STATES TREASURY NOTES (39.3%)
5.50%, due 2/28/03 (a).......... 2,360,000 2,292,150
6.00%, due 7/31/02.............. 1,020,000 1,005,975
6.25%, due 1/31/02.............. 1,330,000 1,319,613
6.50%, due 8/31/01 (a).......... 5,310,000 5,298,371
6.625%, due 3/31/02............. 650,000 648,882
7.50%, due 11/15/01 (a)......... 2,185,000 2,209,581
-----------
12,774,572
-----------
Total U.S. Government &
Federal Agencies
(Cost $23,029,074).............. 22,782,039
-----------
YANKEE BOND (1.1%)
MANUFACTURING--DIVERSIFIED (1.1%)
Tyco International Group S.A.
6.25%, due 6/15/13 (b).......... 360,000 340,765
-----------
Total Yankee Bond
(Cost $343,392)................. 340,765
-----------
Total Long-Term Investments
(Cost $32,253,455).............. 31,824,459
-----------
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
131
<PAGE> 134
SHORT-TERM BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT (1.5%)
PRINCIPAL
AMOUNT VALUE
-----------------------
<S> <C> <C>
COMMERCIAL PAPER (1.5%)
UBS Finance Delaware LLC
6.25%, due 5/1/00............... $ 490,000 $ 489,836
-----------
Total Short-Term Investment
(Cost $489,836)................. 489,836
-----------
Total Investments
(Cost $32,743,291) (c).......... 99.5% 32,314,295(d)
Cash and Other Assets,
Less Liabilities................ 0.5 177,196
---------- -----------
Net Assets....................... 100.0% $32,491,491
========== ===========
</TABLE>
--------------------------------------------------------
(a) Represents securities out on loan or a portion which is out on loan. (See
Note 2(0))
(b) Floating rate. Rate shown is the rate in effect at April 30, 2000.
(c) The cost for Federal income tax purposes is $32,765,387.
(d) At April 30, 2000 gross unrealized depreciation was $451,092, based on cost
for Federal income tax purposes. This consisted of aggregate gross
unrealized depreciation for all investments on which there was an excess of
cost over market value of $451,092.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
132
<PAGE> 135
MAINSTAY
INSTITUTIONAL FUNDS INC.
SHORT-TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (identified
cost $32,743,291)............................... $32,314,295
Cash.............................................. 4,029
Collateral held for securities loaned at value
(Note 2(O))..................................... 9,702,661
Receivables:
Investment securities sold...................... 495,000
Interest........................................ 421,951
Fund shares sold................................ 14,844
-----------
Total assets................................ 42,952,780
-----------
LIABILITIES:
Securities lending collateral (Note 2(O))......... 9,702,661
Payables:
Investment securities purchased................. 694,563
MainStay Management............................. 10,847
Fund shares redeemed............................ 7,549
Custodian....................................... 6,717
Transfer agent.................................. 4,692
Accrued expenses.................................. 34,260
-----------
Total liabilities........................... 10,461,289
-----------
Net assets........................................ $32,491,491
===========
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
1 billion shares authorized
Institutional Class............................. $ 3,506
Institutional Service Class..................... 117
Additional paid-in capital........................ 40,377,603
Accumulated undistributed net investment income... 618,647
Accumulated net realized loss on investments...... (8,079,386)
Net unrealized depreciation on investments........ (428,996)
-----------
Net assets........................................ $32,491,491
===========
Institutional Class
Net assets applicable to outstanding shares....... $31,448,927
===========
Shares of capital stock outstanding............... 3,506,019
===========
Net asset value per share outstanding............. $ 8.97
===========
Institutional Service Class
Net assets applicable to outstanding shares....... $ 1,042,564
===========
Shares of capital stock outstanding............... 116,548
===========
Net asset value per share outstanding............. $ 8.95
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest........................................ $ 1,037,935
-----------
Expenses:
Management...................................... 99,211
Professional.................................... 17,130
Transfer agent.................................. 14,541
Registration.................................... 14,409
Custodian....................................... 8,830
Pricing Service................................. 1,785
Shareholder communication....................... 1,378
Service......................................... 1,269
Directors....................................... 387
Miscellaneous................................... 8,041
-----------
Total expenses before
reimbursement.............................. 166,981
Expense reimbursement from Manager.............. (63,262)
-----------
Net expenses................................ 103,719
-----------
Net investment income............................. 934,216
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.................. (556,488)
Net change in unrealized appreciation
(depreciation) on investments................... 183,367
-----------
Net realized and unrealized loss on investments... (373,121)
-----------
Net increase in net assets resulting from
operations...................................... $ 561,095
===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
133
<PAGE> 136
SHORT-TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................... $ 934,216 $ 2,389,951 $ 2,578,509
Net realized gain (loss) on investments................. (556,488) (440,119) 26,879
Net change in unrealized appreciation (depreciation)
on investments........................................ 183,367 (830,282) 84,111
------------ ------------ ------------
Net increase in net assets resulting from operations.... 561,095 1,119,550 2,689,499
------------ ------------ ------------
Dividends to shareholders:
From net investment income:
Institutional Class................................... (2,613,821) -- (2,516,800)
Institutional Service Class........................... (84,430) -- (67,925)
------------ ------------ ------------
Total dividends to shareholders..................... (2,698,251) -- (2,584,725)
------------ ------------ ------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 15,222,872 28,062,583 17,781,967
Institutional Service Class........................... 82,231 298,883 791,418
Net asset value of shares issued to shareholders in
reinvestment of dividends:
Institutional Class................................... 2,613,817 -- 2,516,797
Institutional Service Class........................... 59,231 -- 67,923
------------ ------------ ------------
17,978,151 28,361,466 21,158,105
Cost of shares redeemed:
Institutional Class................................... (32,469,477) (23,230,166) (24,848,447)
Institutional Service Class........................... (66,325) (557,420) (1,081,302)
------------ ------------ ------------
Increase (decrease) in net assets derived from capital
share transactions.................................. (14,557,651) 4,573,880 (4,771,644)
------------ ------------ ------------
Net increase (decrease) in net assets................. (16,694,807) 5,693,430 (4,666,870)
NET ASSETS:
Beginning of period....................................... 49,186,298 43,492,868 48,159,738
------------ ------------ ------------
End of period............................................. $ 32,491,491 $ 49,186,298 $ 43,492,868
============ ============ ============
Accumulated undistributed net investment income at end of
period.................................................. $ 618,647 $ 2,382,682 $ --
============ ============ ============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
134
<PAGE> 137
(THIS PAGE INTENTIONALLY LEFT BLANK)
135
<PAGE> 138
SHORT-TERM BOND FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------- ------------- ------------- -------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH YEAR ENDED
APRIL 30, 2000** OCTOBER 31, 1999* DECEMBER 31, 1998
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period....... $ 9.63 $ 9.59 $ 9.43 $ 9.41 $ 9.39 $ 9.38
------- ------- ------- ------- ------- -------
Net investment income..... 0.51 0.50 0.47 0.45 0.56 0.53
Net realized and
unrealized gain (loss)
on investments.......... (0.36) (0.36) (0.27) (0.27) 0.04 0.03
------- ------- ------- ------- ------- -------
Total from investment
operations.............. 0.15 0.14 0.20 0.18 0.60 0.56
------- ------- ------- ------- ------- -------
Less dividends from net
investment income....... (0.81) (0.78) -- -- (0.56) (0.53)
------- ------- ------- ------- ------- -------
Net asset value at end of
period.................. $ 8.97 $ 8.95 $ 9.63 $ 9.59 $ 9.43 $ 9.41
======= ======= ======= ======= ======= =======
Total investment return... 1.63%(a) 1.58%(a) 2.12%(a) 1.91%(a) 6.37% 5.98%
Ratios (to average net
assets)/Supplemental
Data:
Net investment income... 5.66%+ 5.41%+ 5.42%+ 5.17%+ 5.95% 5.70%
Net expenses............ 0.60%+ 0.85%+ 0.60% 0.85% 0.60% 0.85%
Expenses (before
reimbursement)........ 1.00%+ 1.25%+ 0.85%+ 1.10%+ 0.89% 1.14%
Portfolio turnover rate... 69% 69% 105% 105% 125% 125%
Net assets at end of
period (in 000's)....... $31,449 $ 1,042 $48,150 $ 1,036 $42,219 $ 1,273
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
** Unaudited.
+ Annualized.
(a) Total return is not annualized.
(b) Institutional Service Class commenced January 1, 1995.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
136
<PAGE> 139
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS(b) CLASS
------------- ------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994
----------------------------- ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.48 $ 9.46 $ 9.68 $ 9.67 $ 9.37 $ 9.37 $ 10.33
------- ------- ------- ------- ------- ------- -------
0.67 0.64 0.66 0.64 0.65 0.64 0.97
(0.09) (0.08) (0.20) (0.21) 0.31 0.30 (0.96)
------- ------- ------- ------- ------- ------- -------
0.58 0.56 0.46 0.43 0.96 0.94 0.01
------- ------- ------- ------- ------- ------- -------
(0.67) (0.64) (0.66) (0.64) (0.65) (0.64) (0.97)
------- ------- ------- ------- ------- ------- -------
$ 9.39 $ 9.38 $ 9.48 $ 9.46 $ 9.68 $ 9.67 $ 9.37
======= ======= ======= ======= ======= ======= =======
6.13% 5.98% 4.81% 4.46% 10.27% 10.07% 0.11%
6.24% 5.99% 5.85% 5.60% 6.38% 6.13% 5.90%
0.60% 0.85% 0.60% 0.85% 0.60% 0.85% 0.60%
0.82% 1.07% 0.79% 1.04% 0.82% 1.07% 0.72%
153% 153% 195% 195% 171% 171% 269%
$46,674 $ 1,485 $57,805 $ 1,316 $50,902 $ 1,128 $62,340
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
137
<PAGE> 140
Money Market Fund
--------------------------------------------------------------------------------
During the six months ended April 30, 2000, the Federal Reserve moved to raise
interest rates three times--in November of 1999, and February and March of 2000.
Each of these moves increased the targeted federal funds rate by 25 basis
points. The rate increases generally had a positive impact on the yields
available to money-market investors.
We believe ongoing concerns about strong economic growth, tight labor markets,
and inflationary pressures are likely to keep the Federal Reserve in a
tightening mode. Seeking appropriate ways to manage interest-rate risk may be a
key consideration in the coming months, as Fund managers seek to capitalize on
anticipated Federal Reserve moves.
PERFORMANCE REVIEW
For the six months ended April 30, 2000, MainStay Institutional Money Market
Fund returned 2.75% for Institutional Class shares, 2.62% for Service Class
shares, and 2.50% for Sweep Shares Class shares. All share classes
underperformed the 2.76% return of the average Lipper(1) institutional money
market fund over the same six-month period.
The Fund's underperformance relative to its Lipper peers resulted from
shortening the Fund's weighted average maturity from 53 to 34 days during the
first quarter of 2000, as we repositioned the Fund to capitalize on an
anticipated 50 basis-point increase in interest rates.
STRATEGIES AND SECTOR WEIGHTINGS
During the reporting period, the Fund's weighted average maturity ranged from 30
to 68 days. In light of the Federal Reserve's ongoing tightening strategy, the
Fund reduced its weighted average maturity to a target range of 30 to 40 days,
seeking to capitalize on the rate increases we anticipated during and after the
reporting period. In our opinion, the yield premiums for extending the weighted
average maturity of the Fund were not sufficient to justify longer maturities.
Utilizing our expertise with asset-backed commercial paper, the Fund made
several investments in these securities, which helped enhance portfolio yield.
Although these asset-backed securities tend to trade cheaper than other
securities because of their structure, we believe they still represent
investments of the highest quality. The Fund also invested in floating-rate
securities, which offer a yield premium over comparable commercial paper. While
the maturities of the floating-rate securities tend to be longer, the rates may
be tied to short-term benchmarks such as the federal funds rate or one-month or
quarterly LIBOR (the London Interbank Offered Rate).
One of the Fund's significant purchases during the reporting period was Wesley
Commercial and Residential Securities Funding Trust I, an asset-backed security
collateralized by commercial and residential mortgage pools. The Fund also
purchased floating-rate securities from Caterpillar Financial Services Corp. and
Heller Financial Inc. These types of investments provided the Fund with higher
yields than comparable commercial paper, without negatively impacting portfolio
quality. The Fund remains underweighted in Treasury and agency securities and
continues to emphasize securities that offer yield advantages over Treasuries.
LOOKING AHEAD
There is little doubt that the Federal Reserve will continue to adjust the money
supply in response to strong economic growth, tight labor markets, and
inflationary pressures. We believe this may result in additional tightening
moves, perhaps at a more aggressive pace. As a result, we intend to maintain a
shorter maturity structure in the Fund over the near term to capture anticipated
rate increases in a responsive manner.
--------------------------------------------------------------------------------
(1) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
138
<PAGE> 141
--------------------------------------------------------------------------------
We will closely monitor this strategy and revise it when we believe economic
conditions warrant a change. Whatever the markets or the economy may bring, the
Fund will continue to seek a high level of current income while preserving
capital and maintaining liquidity.
MARK C. BOYCE
DAVID CLEMENT
Portfolio Managers
New York Life Asset Management Operating Company LLC
--------------------------------------------------------------------------------
Past performance is no guarantee of future results.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund. Foreign securities can be subject to greater
risks than domestic investments, including political and economic instability,
less publicly available information about issuers, and changes in U.S. or
foreign tax or currency laws. The Fund may invest in derivatives, which may
result in a loss to the Fund.
139
<PAGE> 142
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
MONEY MARKET FUND VS
AVERAGE LIPPER INSTITUTIONAL MONEY MARKET FUND
INSTITUTIONAL CLASS SHARES
[INSTITUTIONAL CLASS SHARES GRAPH]
=================================
<TABLE>
<CAPTION>
AVERAGE LIPPER INSTITUTIONAL MONEY
INSTITUTIONAL MONEY MARKET FUND MARKET FUND
------------------------------- ----------------------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 264,886 264,974
92 274,574 274,560
93 282,505 282,582
94 293,461 293,763
95 309,973 310,470
96 325,805 326,448
97 342,990 343,791
98 360,986 362,020
99 378,626 379,862
00 as of 4/30/00 385,583 386,889
</TABLE>
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
MONEY MARKET FUND VS
AVERAGE LIPPER INSTITUTIONAL MONEY MARKET FUND
SWEEP SHARES CLASS SHARES
[SWEEP SHARES CLASS SHARES GRAPH]
=================================
<TABLE>
<CAPTION>
INSTITUTIONAL MONEY MARKET AVERAGE LIPPER INSTITUTIONAL
FUND MONEY MARKET FUND
-------------------------- ----------------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 264,886 264,974
92 274,574 274,560
93 282,505 282,582
94 293,461 293,763
95 309,478 310,470
96 324,481 326,448
97 340,748 343,791
98 357,764 362,020
99 373,387 379,862
00 as of 4/30/00 379,623 386,889
</TABLE>
$250,000 INVESTED IN MAINSTAY INSTITUTIONAL
MONEY MARKET FUND VS
AVERAGE LIPPER INSTITUTIONAL MONEY MARKET FUND
SERVICE CLASS SHARES
[SERVICE CLASS SHARES GRAPH]
============================
<TABLE>
<CAPTION>
AVERAGE LIPPER INSTITUTIONAL MONEY
INSTITUTIONAL MONEY MARKET FUND MARKET FUND
------------------------------- ----------------------------------
<S> <C> <C>
1/2/91 $250,000 $250,000
91 264,886 264,974
92 274,574 274,560
93 282,505 282,582
94 293,461 293,763
95 309,478 310,470
96 324,481 326,448
97 340,748 343,791
98 357,737 362,020
99 374,287 379,862
00 as of 4/30/00 380,852 386,889
</TABLE>
THESE GRAPHS ASSUME A $250,000 INVESTMENT MADE ON 1/2/91.
<TABLE>
<CAPTION>
TOTAL RETURN(*) AVERAGE ANNUAL TOTAL RETURN(*)
PERFORMANCE AS OF APRIL 30, 2000 AS OF APRIL 30, 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six-month period One year Five years Since inception
------------------------------------------------------------------------------------------------------------------
Money Market Fund Institutional Class(+) 2.75% 5.19% 5.23% 4.75%
Money Market Fund Service Class(+) 2.62 4.93 4.97 4.61
Money Market Fund Sweep Shares Class(+) 2.50 4.67 4.90 4.58
Average Lipper institutional money market
fund(++) 2.76 5.25 5.31 4.93
</TABLE>
YEAR-BY-YEAR PERFORMANCE
--------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
[PERFORMANCE CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5.95 3.66 2.89 3.88 5.63 5.11 5.27 5.25 3.96
2000
----
2.75
</TABLE>
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. DUE TO CURRENT MARKET
VOLATILITY, CURRENT PERFORMANCE MAY BE LESS THAN THAT SHOWN.
Investments in MainStay Institutional Money Market Fund are not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Fund.
* Total returns shown herein include the change in share price and
reinvestment of capital gain distributions and dividends.
(+) Performance figures for the Sweep Shares Class, first offered to the public
on 12/8/98, include the historical performance of the Service Class from the
Service Class's inception (1/1/95) up to 12/7/98. Performance figures for
the Service Class, first offered to the public on 1/1/95, include the
historical performance of the Institutional Class from the Fund's inception
(1/2/91) up to 12/31/94. Performance figures for these classes will vary
after these dates based on differences in their expense structures.
MainStay Institutional Money Market Fund had an effective 7-day yield with a
current 7-day yield of 5.81% and 5.65%, respectively, for the Institutional
Class; 5.55% and 5.40%, respectively, for the Service Class; and 5.29% and
5.15%, respectively, for the Sweep Shares Class; all as of 4/30/00. These
yields reflect certain expense limitations. Had these expenses not been
limited, the effective 7-day yield and the current 7-day yield would have
been 5.74% and 5.58%, respectively, for the Institutional Class; 5.48% and
5.33%, respectively, for the Service Class; and 5.21% and 5.08%,
respectively, for the Sweep Shares Class. These expense limitations are
voluntary and may be terminated or revised at any time.
(++) Lipper Inc. is an independent monitor of mutual fund performance. Its
rankings are based on total returns with capital gains and dividends
reinvested.
140
<PAGE> 143
MAINSTAY
INSTITUTIONAL FUNDS INC.
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (100.3%)+
PRINCIPAL AMORTIZED
AMOUNT COST
-------------------------
<S> <C> <C>
ASSET-BACKED SECURITY (1.2%)
Wesley Commercial &
Residential Funding Trust I
Series 2000-1 Class A1
6.16%, due 3/29/01
(a)(b)(c).................. $ 5,000,000 $ 5,000,000
------------
BANK NOTES (8.6%)
Comerica Bank (Detroit,
Michigan)
6.17%, due 9/11/00 (b)(c).. 5,000,000 4,999,107
First Union National Bank
6.13%, due 8/18/00 (b)(c).. 5,000,000 5,000,000
Greenwood Trust Co.
6.15%, due 5/24/00 (c)..... 10,000,000 10,000,000
Huntington National Bank
6.10%, due 2/9/01 (b)(c)... 5,000,000 5,002,126
Key Bank North America
6.64%, due 11/2/00 (b)(c).. 5,000,000 5,007,747
National City Bank
6.38%, due 10/16/00
(b)(c)..................... 5,000,000 5,003,211
------------
35,012,191
------------
CERTIFICATES OF DEPOSIT (2.2%)
African Development Bank
9.30%, due 7/1/00 (c)...... 3,910,000 3,929,295
Suntrust Bank
6.77%, due 4/18/01 (c)..... 5,000,000 5,000,915
------------
8,930,210
------------
COMMERCIAL PAPER (74.4%)
Aetna Services Inc.
6.10%, due 5/18/00......... 7,635,000 7,613,007
Asset Portfolio Funding
Corp.
5.96%, due 6/8/00 (a)...... 10,000,000 9,937,089
Banco Santander Puerto Rico
6.03%, due 5/15/00......... 10,978,000 10,952,257
Concord Minutemen Capital
Co. LLC
6.06%, due 5/1/00 (a)...... 9,127,000 9,127,000
Countrywide Home Loans Inc.
6.06%, due 5/23/00......... 10,000,000 9,962,967
Edison International
6.02%, due 5/17/00 (a)..... 11,250,000 11,219,900
Frigate Funding Corp.
6.10%, due 6/20/00 (a)..... 10,000,000 9,915,278
General Electric Capital
Corp.
6.05%, due 6/7/00.......... 8,000,000 7,950,256
General Motors Acceptance
Corp.
5.97%, due 7/10/00......... 10,000,000 9,883,917
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
-------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Govco Inc.
5.83%, due 5/26/00 (a)..... $ 5,400,000 $ 5,378,137
6.09%, due 6/13/00 (a)..... 10,000,000 9,927,258
Homeside Lending Inc.
6.04%, due 5/8/00.......... 12,300,000 12,285,554
John Deere Capital Corp.
5.90%, due 6/5/00.......... 10,000,000 9,942,639
Knight Ridder Inc.
6.08%, due 6/19/00......... 5,000,000 4,958,622
Lexington Parker Capital Co.
LLC
6.06%, due 5/1/00 (a)...... 926,000 926,000
Massachusetts College of
Pharmacy
5.85%, due 6/6/00.......... 7,000,000 6,959,050
Merrill Lynch & Co., Inc.
5.80%, due 6/23/00......... 10,000,000 9,914,611
Nestle Finance France S.A.
6.00%, due 5/5/00.......... 5,325,000 5,321,450
NSTAR
6.10%, due 5/10/00 (a)..... 10,000,000 9,984,750
Repsol International Finance
B.V.
6.08%, due 5/2/00.......... 10,000,000 9,998,311
6.14%, due 6/20/00......... 5,000,000 4,957,361
6.18%, due 7/11/00......... 5,000,000 4,939,058
Salomon Smith Barney
Holdings Inc.
6.00%, due 5/4/00 (b)(c)... 8,000,000 7,996,000
SBC Communications Inc.
6.05%, due 5/25/00 (a)(b).. 7,000,000 6,971,767
Sears Roebuck Acceptance
Corp.
5.95%, due 5/30/00 (b)..... 10,000,000 9,952,069
Special Purpose Accounts
Receivable Cooperative
Corp.
5.95%, due 5/1/00 (a)...... 10,000,000 10,000,000
Svenska Handelsbanken Inc.
6.27%, due 9/29/00......... 2,000,000 1,947,402
Target Corp.
6.05%, due 5/17/00......... 15,000,000 14,959,667
Torchmark Corp.
6.13%, due 6/5/00.......... 5,000,000 4,970,201
6.15%, due 5/22/00......... 14,250,000 14,198,878
UBS Finance Delaware LLC
5.84%, due 5/8/00.......... 10,000,000 9,988,644
Wood Street Funding Corp.
5.91%, due 5/12/00 (a)..... 10,000,000 9,981,942
World Omni Vehicle Leasing
Inc.
6.06%, due 5/5/00 (a)...... 2,825,000 2,823,098
6.08%, due 5/5/00 (a)...... 10,818,000 10,810,692
6.10%, due 6/6/00 (a)...... 7,000,000 6,957,300
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
141
<PAGE> 144
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (CONTINUED)
PRINCIPAL AMORTIZED
AMOUNT COST
-------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Xerox Corp.
6.11%, due 6/7/00.......... $ 5,000,000 $ 4,968,601
6.11%, due 6/15/00......... 5,000,000 4,961,813
------------
303,542,546
------------
CORPORATE BONDS (2.7%)
Carolina Telephone &
Telegraph Co.
5.75%, due 8/15/00 (c)..... 1,000,000 998,462
May Department Stores Co.
9.88%, due 6/15/00 (c)..... 2,640,000 2,651,704
Mountain States Telephone &
Telegraph Co.
9.50%, due 5/1/00 (c)...... 2,200,000 2,200,000
So. Carolina Electric & Gas
Co.
6.00%, due 6/15/00 (c)..... 5,000,000 4,999,510
------------
10,849,676
------------
U.S. GOVERNMENT & FEDERAL AGENCIES (2.4%)
Freddie Mac (Discount Note)
5.53%, due 6/30/00......... 2,615,000 2,590,898
Federal National Mortgage
Association (Discount Note)
5.72%, due 5/25/00......... 3,147,000 3,134,999
United States Treasury Bills
5.26%, due 8/17/00......... 3,000,000 2,952,660
5.47%, due 8/17/00......... 1,055,000 1,037,703
------------
9,716,260
------------
MEDIUM-TERM NOTES (8.8%)
Bank One Corp.
6.18%, due 1/3/01 (b)(c)... 5,000,000 5,000,000
Caterpillar Financial
Services Corp.
6.17%, due 2/5/01 (b)(c)... 5,000,000 5,004,406
6.32%, due 6/8/00 (b)(c)... 5,000,000 5,000,322
Heller Financial Inc.
6.35%, due 4/2/01 (b)(c)... 10,000,000 9,995,342
IBM Credit Corp.
(zero coupon), due 5/19/00
(c)........................ 11,000,000 10,968,153
------------
35,968,223
------------
Total Short-Term Investments
(Amortized Cost
$409,019,106) (d).......... 100.3% 409,019,106
Liabilities in Excess of
Cash and Other Assets...... (0.3) (1,142,541)
----------- ------------
Net Assets.................. 100.0% $407,876,565
=========== ============
</TABLE>
------------
(a) May be sold to institutional investors only.
(b) Floating rate. Rate shown is the rate in effect at April 30, 2000.
(c) Coupon interest bearing security.
(d) The cost stated also represents the aggregate cost for Federal income tax
purposes.
The table below sets forth the diversification of Money Market Fund investments
by industry.
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
AMORTIZED
COST PERCENT +
-------------------------
<S> <C> <C>
Auto Finance................. $ 30,475,006 7.5%
Banks........................ 61,830,703 15.2
Brokerage.................... 17,910,611 4.4
Capital Goods................ 10,004,728 2.5
Computers & Office
Equipment................... 20,898,567 5.0
Conglomerates................ 7,950,256 1.9
Education.................... 6,959,050 1.7
Farm Equipment............... 9,942,639 2.4
Finance...................... 72,462,532 17.8
Insurance.................... 26,782,086 6.6
Oil-International............ 19,894,731 4.9
Publishing-Newspapers........ 4,958,622 1.2
Retail....................... 27,563,440 6.8
Special Purpose Finance...... 29,990,089 7.4
Telecommunication Services... 9,171,767 2.2
U.S. Government & Federal
Agencies.................... 25,021,657 6.1
Utilities.................... 5,997,972 1.5
Utilities-Electric........... 21,204,650 5.2
----------- --------
409,019,106 100.3
Liabilities in Excess of Cash
and Other Assets............ (1,142,541) (0.3)
----------- --------
Net Assets................... $407,876,565 100.0%
=========== ========
</TABLE>
------------
+ Percentages indicated are based on Fund net assets.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
142
<PAGE> 145
MAINSTAY
INSTITUTIONAL FUNDS INC.
MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (amortized
cost $409,019,106)............................. $409,019,106
Cash............................................. 862
Receivables:
Investment securities sold..................... 21,234,355
Interest....................................... 940,725
Fund shares sold............................... 29,014
------------
Total assets............................... 431,224,062
------------
LIABILITIES:
Payables:
Investment securities purchased................ 20,092,612
Fund shares redeemed........................... 1,143,118
MainStay Management............................ 190,840
Custodian...................................... 9,663
Transfer agent................................. 8,703
Accrued expenses................................. 158,385
Dividend payable................................. 1,744,176
------------
Total liabilities.......................... 23,347,497
------------
Net assets....................................... $407,876,565
============
COMPOSITION OF NET ASSETS:
Capital stock (par value of $.001 per share)
12 billion shares authorized
Institutional Class............................ $ 208,128
Institutional Service Class.................... 1,604
Sweep Shares Class............................. 198,168
Additional paid-in capital....................... 407,492,684
Accumulated net realized loss on investments..... (24,019)
------------
Net assets....................................... $407,876,565
============
Institutional Class
Net assets applicable to outstanding shares...... $208,105,351
============
Shares of capital stock outstanding.............. 208,128,456
============
Net asset value per share outstanding............ $ 1.00
============
Institutional Service Class
Net assets applicable to outstanding shares...... $ 1,604,185
============
Shares of capital stock outstanding.............. 1,604,198
============
Net asset value per share outstanding............ $ 1.00
============
Sweep Shares Class
Net assets applicable to outstanding shares...... $198,167,029
============
Shares of capital stock outstanding.............. 198,167,930
============
Net asset value per share outstanding............ $ 1.00
============
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest........................................ $12,615,994
-----------
Expenses:
Management...................................... 1,056,821
Distribution--Sweep Shares Class................ 233,610
Service--Sweep Shares Class..................... 233,610
Service--Institutional Service Class............ 3,367
Shareholder communication....................... 33,022
Transfer agent.................................. 26,870
Professional.................................... 25,677
Custodian....................................... 22,982
Registration.................................... 4,661
Directors....................................... 4,287
Pricing Service................................. 1,374
Miscellaneous................................... 14,459
-----------
Total expenses before
reimbursement.............................. 1,660,740
Expense reimbursement from Manager.............. (132,476)
-----------
Net expenses................................ 1,528,264
-----------
Net investment income............................. 11,087,730
-----------
REALIZED LOSS ON INVESTMENTS:
Net realized loss on investments.................. (2,031)
-----------
Net increase in net assets resulting from
operations...................................... $11,085,699
===========
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
143
<PAGE> 146
MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 (Unaudited), the period January 1, 1999
through October 31, 1999* and the year ended December 31, 1998
<TABLE>
<CAPTION>
2000 1999* 1998
------------- ------------- -------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income................................... $ 11,087,730 $ 13,213,728 $ 14,014,435
Net realized gain (loss) on investments................. (2,031) 5,267 (22,863)
------------- ------------- -------------
Net increase in net assets resulting from operations.... 11,085,699 13,218,995 13,991,572
------------- ------------- -------------
Dividends to shareholders:
From net investment income:
Institutional Class................................... (6,369,180) (8,402,982) (10,021,538)
Institutional Service Class........................... (69,537) (487,323) (3,989,833)
Sweep Shares Class.................................... (4,649,013) (4,323,423) (3,064)
------------- ------------- -------------
Total dividends to shareholders..................... (11,087,730) (13,213,728) (14,014,435)
------------- ------------- -------------
Capital share transactions:
Net proceeds from sale of shares:
Institutional Class................................... 222,927,156 478,066,197 267,338,520
Institutional Service Class........................... 1,250,447 10,416,347 92,388,730
Sweep Shares Class.................................... 114,071,618 251,505,734 7,085,440
Net asset value of shares issued to shareholders in
reinvestment of dividends:
Institutional Class................................... 5,432,479 8,988,009 10,079,609
Institutional Service Class........................... 43,247 810,782 3,866,077
Sweep Shares Class.................................... 3,840,386 4,313,813 --
------------- ------------- -------------
347,565,333 754,100,882 380,758,376
Cost of shares redeemed:
Institutional Class................................... (266,966,623) (434,683,773) (273,376,385)
Institutional Service Class........................... (5,319,064) (109,362,209) (56,718,408)
Sweep Shares Class.................................... (72,012,185) (110,508,066) (128,810)
------------- ------------- -------------
Increase in net assets derived from capital share
transactions........................................ 3,267,461 99,546,834 50,534,773
------------- ------------- -------------
Net increase in net assets............................ 3,265,430 99,552,101 50,511,910
NET ASSETS:
Beginning of period....................................... 404,611,135 305,059,034 254,547,124
------------- ------------- -------------
End of period............................................. $ 407,876,565 $ 404,611,135 $ 305,059,034
============= ============= =============
</TABLE>
------------
* The Fund changed its fiscal year end from December 31 to October 31.
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
144
<PAGE> 147
(THIS PAGE INTENTIONALLY LEFT BLANK)
145
<PAGE> 148
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(Selected per share data and ratios)
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL
INSTITUTIONAL SERVICE SWEEP SHARES INSTITUTIONAL SERVICE SWEEP SHARES
CLASS CLASS CLASS CLASS CLASS CLASS
------------- ------------- ------------ ------------- ------------- ------------
JANUARY 1, 1999
SIX MONTHS ENDED THROUGH
APRIL 30, 2000*** OCTOBER 31, 1999*
-------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Net investment income..... 0.03 0.03 0.03 0.04 0.04 0.04
-------- -------- -------- -------- -------- --------
Less dividends and
distributions:
From net investment
income................... (0.03) (0.03) (0.03) (0.04) (0.04) (0.04)
From net realized gain on
investments.............. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total dividends and
distributions............ (0.03) (0.03) (0.03) (0.04) (0.04) (0.04)
-------- -------- -------- -------- -------- --------
Net asset value at end of
period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total investment return... 2.75%(b) 2.62%(b) 2.50%(b) 3.96%(b) 3.74%(b) 3.53%(b)
Ratios (to average net
assets)/Supplemental
Data:
Net investment
income................. 5.53%+ 5.28%+ 5.03%+ 4.68%+ 4.43%+ 4.18%+
Net expenses............. 0.50%+ 0.75%+ 1.00%+ 0.50%+ 0.75%+ 1.00%+
Expenses (before
reimbursement)......... 0.57%+ 0.82%+ 1.07%+ 0.62%+ 0.87%+ 1.12%+
Net assets at end of
period (in 000's)........ $208,105 $ 1,604 $198,167 $246,713 $ 5,630 $152,268
<CAPTION>
INSTITUTIONAL
INSTITUTIONAL SERVICE
CLASS CLASS
------------- -------------
YEAR ENDED
DECEMBER 31, 1998
-----------------------------
<S> <C> <C>
Net asset value at
beginning of period....... $ 1.00 $ 1.00
-------- --------
Net investment income..... 0.05 0.05
-------- --------
Less dividends and
distributions:
From net investment
income................... (0.05) (0.05)
From net realized gain on
investments.............. -- --
-------- --------
Total dividends and
distributions............ (0.05) (0.05)
-------- --------
Net asset value at end of
period................... $ 1.00 $ 1.00
======== ========
Total investment return... 5.25% 4.99%
Ratios (to average net
assets)/Supplemental
Data:
Net investment
income................. 5.12% 4.87%
Net expenses............. 0.50% 0.75%
Expenses (before
reimbursement)......... 0.63% 0.88%
Net assets at end of
period (in 000's)........ $194,338 $103,765
</TABLE>
------------
<TABLE>
<C> <S>
* The Fund changed its fiscal year end from December 31 to
October 31.
** Sweep Shares Class first offered on December 8, 1998.
*** Unaudited.
+ Annualized.
(a) Less than one cent per share.
(b) Total return is not annualized.
(c) Institutional Service Class commenced January 1, 1995.
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
146
<PAGE> 149
MAINSTAY
INSTITUTIONAL FUNDS INC.
<TABLE>
<CAPTION>
INSTITUTIONAL INSTITUTIONAL
SWEEP SHARES INSTITUTIONAL SERVICE INSTITUTIONAL SERVICE INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS
------------------ ------------- ------------- ------------- ------------- -------------
DECEMBER 8, 1998** YEAR ENDED DECEMBER 31
THROUGH -----------------------------------------------------------------------------
DECEMBER 31, 1998 1997 1996 1995
------------------ ----------------------------- ----------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
0.00(a) 0.05 0.05 0.05 0.05 0.05
-------- -------- -------- -------- -------- --------
(0.00)(a) (0.05) (0.05) (0.05) (0.05) (0.05)
-- (0.00)(a) (0.00)(a) -- -- --
-------- -------- -------- -------- -------- --------
(0.00)(a) (0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- --------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
0.31%(b) 5.27% 5.01% 5.11% 4.85% 5.63%
4.62%+ 5.18% 4.93% 5.00% 4.75% 5.48%
1.00%+ 0.50% 0.75% 0.50% 0.75% 0.50%
1.13%+ 0.61% 0.86% 0.67% 0.92% 0.73%
$ 6,957 $190,319 $ 64,228 $110,760 $ 34,664 $ 67,869
<CAPTION>
INSTITUTIONAL
SERVICE INSTITUTIONAL
CLASS(c) CLASS
------------- -------------
YEAR ENDED DECEMBER 31
-----------------------------
1995 1994
------------- -------------
<S> <C> <C>
$ 1.00 $ 1.00
-------- --------
0.05 0.04
-------- --------
(0.05) (0.04)
-- --
-------- --------
(0.05) (0.04)
-------- --------
$ 1.00 $ 1.00
======== ========
5.46% 3.88%
5.23% 3.89%
0.75% 0.50%
0.98% 0.68%
$ 2,784 $ 65,106
</TABLE>
The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
147
<PAGE> 150
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1-- Organization and Business:
--------------------------------------------------------------------------------
MainStay Institutional Funds Inc. (the "Company") was incorporated in the
state of Maryland on September 21, 1990 and commenced operations on January 2,
1991. The Company is registered as an open-end management investment company
under the Investment Company Act of 1940, as amended, ("Investment Company
Act"). As of April 30, 2000, the Company has eleven separate investment
portfolios: Growth Equity Fund, Indexed Equity Fund, Value Equity Fund, Asset
Manager Fund (formerly known as the Multi-Asset Fund), International Equity
Fund, EAFE Index Fund, International Bond Fund, Bond Fund, Indexed Bond Fund,
Short-Term Bond Fund (individually or collectively referred to as a "Fund" or
the "Funds") and Money Market Fund. The International Equity Fund and the
International Bond Fund commenced operations on January 1, 1995.
Each Fund currently offers two classes of shares as follows: Institutional
Class shares and Institutional Service Class shares. In addition, the Money
Market Fund offers a third class of shares, the Money Market Fund Sweep Shares
Class. The Company has adopted a Shareholder Services Plan with respect to each
class of each Fund. The shares classes are substantially the same, except that
the Institutional Service Class shares and the Money Market Fund Sweep Shares
Class each bears the fees payable under the Shareholder Services Plan for that
class at an annual rate of 0.25% of the average daily net assets of the
outstanding shares in the class. The Money Market Fund Sweep Shares Class also
bears the payment of fees at an annual rate of 0.25% of the average daily net
assets of the outstanding Sweep Shares for services in support of distribution
activities under a distribution plan pursuant to Rule 12b-1 under the Investment
Company Act ("Distribution Plan"). The distribution of Institutional Service
Class shares commenced on January 1, 1995. The distribution of the Money Market
Fund Sweep Shares Class commenced on December 8, 1998.
The investment objectives for each of the Funds of the Company are as
follows:
The GROWTH EQUITY FUND seeks long-term growth of capital. Dividend income,
if any, is a consideration incidental to the Fund's objective of growth of
capital.
The INDEXED EQUITY FUND seeks to provide investment results that correspond
to the total return performance (reflecting reinvestment of dividends) of common
stocks in the aggregate, as represented by the S&P 500 Composite Stock Price
Index.
The VALUE EQUITY FUND seeks maximum long-term total return from a
combination of capital growth and income.
The ASSET MANAGER FUND seeks to maximize total return, consistent with
certain percentage constraints on amounts allocated to each asset class, from a
combination of common stocks (selected to parallel the performance of the S&P
500 Index, the S&P MidCap 400 Index, the S&P SmallCap 600 Index and the Morgan
Stanley REIT Index), fixed income securities (selected to parallel the
performance of the Salomon Smith Barney Broad Investment Grade Bond Index), and
money market investments.
The INTERNATIONAL EQUITY FUND seeks long-term growth of capital by investing
in a portfolio consisting primarily of non-U.S. equity securities. Current
income is a secondary objective.
The EAFE INDEX FUND seeks to provide investment results that correspond to
the total return performance (reflecting reinvestment of dividends) of common
stocks in the aggregate, as represented by the Morgan Stanley Capital
International Europe, Australasia and Far East Index.
The INTERNATIONAL BOND FUND seeks to provide total return by investing
primarily in a portfolio of non-U.S. (primarily government) debt securities.
The BOND FUND seeks to maximize total return, consistent with liquidity, low
risk to principal and investment in debt securities.
The INDEXED BOND FUND seeks to provide investment results that correspond to
the total return performance of fixed income securities in the aggregate, as
represented by the Salomon Smith Barney Broad Investment Grade Bond Index.
148
<PAGE> 151
MAINSTAY
INSTITUTIONAL FUNDS INC.
The SHORT-TERM BOND FUND seeks to maximize total return, consistent with
liquidity, preservation of capital and investment in short-term debt securities.
The MONEY MARKET FUND seeks to provide a high level of current income while
preserving capital and maintaining liquidity.
There are certain risks involved in investing in foreign securities that are
in addition to the usual risks inherent in domestic instruments. These risks
include those resulting from future adverse political and economic developments
and possible imposition of currency exchange blockages or other foreign
governmental laws or restrictions.
--------------------------------------------------------------------------------
NOTE 2--Significant Accounting Policies:
--------------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by
the Company:
(A)
VALUATION OF FUND SHARES. The net asset value per share of each Class of shares
of each Fund is calculated on each day the New York Stock Exchange (the
"Exchange") is open for trading as of the close of regular trading on the
Exchange, except for the Money Market Fund, which is calculated at noon every
day the Exchange is open. The net asset value per share of each Class of shares
is determined by taking the current market value of total assets attributable to
that Class, except for the Money Market Fund, which is based on the amortized
cost method of valuation, subtracting the liabilities attributable to that
Class, and dividing the result by the outstanding shares of that Class.
The Money Market Fund seeks to maintain a net asset value of $1.00 per
share, although there is no assurance that it will be able to do so.
(B)
SECURITIES VALUATION. Portfolio securities of the Money Market Fund are valued
at their amortized cost, which approximates market value. The amortized cost
method involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization to maturity of the difference
between such cost and the value on maturity date.
Portfolio securities of each of the other Funds are stated at value
determined (a) by appraising common and preferred stocks which are traded on the
Exchange at the last sale price on that day or, if no sale occurs, the mean
between the closing bid price and asked price; (b) by appraising common and
preferred stocks traded on other United States national securities exchanges or
foreign securities exchanges as nearly as possible in the manner described in
(a) by reference to their principal exchange, including the National Association
of Securities Dealers National Market System; (c) by appraising over-the-counter
securities quoted on the National Association of Securities Dealers ("NASDAQ")
system (but not listed on the National Market System) at the bid price supplied
through such system; (d) by appraising over-the-counter securities not quoted on
the NASDAQ system and securities listed or traded on certain foreign exchanges
whose operations are similar to the U.S. over-the-counter market at prices
supplied by a pricing agent selected by a Fund's subadvisor if such prices are
deemed to be representative of market values at the regular close of business of
the Exchange; (e) by appraising debt securities at prices supplied by a pricing
agent selected by a Fund's subadvisor, whose prices reflect broker/dealer
supplied valuations and electronic data processing techniques if those prices
are deemed by a Fund's subadvisor to be representative of market values at the
regular close of business of the Exchange; (f) by appraising options and futures
contracts at the last sale price on the market where any such options or futures
are principally traded; and (g) by appraising all other securities and other
assets, including over-the-counter common and preferred stocks not quoted on the
NASDAQ system, securities not listed or traded on foreign exchanges whose
operations are similar to the U.S. over-the-counter market and debt securities
for which prices are supplied by a pricing agent but are not deemed by a Fund's
subadvisor to be representative of market values, but excluding money market
instruments with a remaining maturity of 60 days or less and including
restricted securities and securities for which no market quotations are
available, at fair value in accordance with procedures approved by the
149
<PAGE> 152
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Company's Board of Directors. Short-term securities which mature in more than 60
days are valued at current market quotations. Short-term securities which mature
in 60 days or less are valued at amortized cost if their term to maturity at
purchase was 60 days or less, or by amortizing the difference between market
value on the 61st day prior to maturity and value on maturity date if their
original term to maturity at purchase exceeded 60 days.
Events affecting the values of portfolio securities that occur between the
time their prices are determined and the close of the Exchange will not be
reflected in the Funds' calculation of net asset values unless a Fund's
subadvisor deems that the particular event would materially affect such Fund's
net asset value, in which case an adjustment will be made.
(C)
FEDERAL INCOME TAXES. Each of the Funds is treated as a separate entity for
federal income tax purposes. The Company's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of the taxable income to the shareholders of
each Fund within the allowable time limits. Therefore, no federal income or
excise tax provision is required.
Investment income received by a Fund from foreign sources may be subject to
foreign income taxes withheld at the source.
(D)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions are
recorded on the ex-dividend date. For the Money Market Fund, dividends are
declared daily and paid monthly. Each of the other Funds intends to declare and
pay, as a dividend, substantially all of their net investment income and net
realized capital gains no less frequently than once a year. Income dividends and
capital gain distributions are determined in accordance with federal tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax differences" are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for federal tax purposes are reported
as dividends in excess of net investment income or distributions in excess of
net realized capital gains.
(E)
CHANGE IN FISCAL YEAR END. During fiscal year 1999, the Company changed its
fiscal year end from December 31 to October 31.
(F)
SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Company records security
transactions on the trade date. Realized gains and losses on security
transactions are determined using the identified cost method and include gains
and losses from repayments of principal on mortgage-related and other
asset-backed securities. Dividend income is recognized on the ex-dividend date
and interest income is accrued daily. Discounts on securities, other than
short-term securities, purchased for a Fund are accreted on the constant yield
method over the life of the respective securities or, in the case of a callable
security, over the period to the first date of call. Premiums on securities
purchased are not amortized for any Fund except the Money Market Fund, which
amortizes the premium on the constant yield method over the life of the
respective securities.
(G)
EXPENSES. Expenses with respect to any two or more Funds are allocated in
proportion to the net assets of the respective Funds when the expenses are
incurred except where direct allocations of expenses can be made.
150
<PAGE> 153
MAINSTAY
INSTITUTIONAL FUNDS INC.
The investment income and expenses (other than expenses incurred under the
Shareholder Services Plans and the Distribution Plan), and realized and
unrealized gains and losses on investments of a Fund are allocated to separate
classes of shares based upon their relative net assets on the date the income is
earned or expenses and realized and unrealized gains and losses are incurred.
(H)
USE OF ESTIMATES. The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
(I)
FOREIGN CURRENCY TRANSACTIONS. The books and records of the Company are kept in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the
mean between the buying and selling rates last quoted by any major U.S. bank at
the following dates:
(i) market value of investment securities, other assets and
liabilities--at the valuation date.
(ii) income and expenses--at the date of such transactions.
The assets and liabilities are presented at the exchange rates and market
values at the close of the period. The realized and unrealized gains and losses
on securities arising from changes in exchange rates and those resulting from
changes in market prices are not separately presented, except that International
Bond Fund isolates the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term debt
securities sold during the period.
Net realized gain (loss) on foreign currency transactions represents net
gains and losses on forward currency transactions, net currency gains and losses
realized as a result of differences between the amounts of security sale
proceeds or purchase cost, dividends, interest and withholding taxes as recorded
on the Fund's books, and the U.S. dollar equivalent amount actually received or
paid. Net currency gains or losses from valuing such foreign currency
denominated assets and liabilities at period-end exchange rates are reflected in
unrealized foreign exchange gains or losses. Realized gains and losses from
certain foreign currency transactions are treated as ordinary income for federal
income tax purposes.
INTERNATIONAL EQUITY FUND
Foreign cash held at April 30, 2000:
<TABLE>
<CAPTION>
CURRENCY COST VALUE
---------------------------------------------- ----------- -----------
<S> <C> <C> <C> <C>
Australian Dollar A$ 30,275 $ 18,536 $ 17,665
Danish Krone DK 34,755 4,385 4,248
Euro E 819,989 786,627 747,259
Japanese Yen Y (21,135) 15,927 (195)
New Zealand Dollar N$ 29,034 14,779 14,116
Norwegian Krone NK 172 20 19
Pound Sterling L (108,296) (172,532) (169,461)
Swedish Krona SK 147,236 16,634 16,445
Swiss Franc CF 48,238 28,621 28,037
---------- ----------
$ 712,997 $ 658,133
========== ==========
</TABLE>
151
<PAGE> 154
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
EAFE INDEX FUND
Foreign cash held at April 30, 2000:
<TABLE>
<CAPTION>
CURRENCY COST VALUE
------------------------------------------- ----------- -----------
<S> <C> <C> <C> <C>
Euro E 1,836 $ 1,735 $ 1,673
Hong Kong Dollar HK 10 1 1
Pound Sterling L 16 26 26
Swedish Krona SK 19,040 2,151 2,127
Swiss Franc SF 11,512 6,758 6,691
---------- ----------
$ 10,671 $ 10,518
========== ==========
</TABLE>
INTERNATIONAL BOND FUND
Foreign cash held at April 30, 2000:
<TABLE>
<CAPTION>
CURRENCY COST VALUE
------------------------------------------- ----------- -----------
<S> <C> <C> <C> <C>
Australian Dollar A$ 24,823 $ 14,868 $ 14,484
Danish Krone DK 158,013 20,420 19,313
Euro E 104,610 98,620 95,332
Japanese Yen Y 1,530,339 14,523 14,160
New Zealand Dollar N$ 14,523 7,538 7,061
---------- ----------
$ 155,969 $ 150,350
========== ==========
</TABLE>
(J)
FOREIGN CURRENCY FORWARD CONTRACTS. A foreign currency forward contract is an
agreement to buy or sell currencies of different countries on a specified future
date at a specified rate. During the period the forward contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking to market" such contract on a daily basis to reflect the
market value of the contract at the end of each day's trading. When the forward
contract is closed, the Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Fund's basis in the contract. Foreign currency forward contracts are used
for hedging purposes or to seek to enhance returns: (see Note 5).
152
<PAGE> 155
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL EQUITY FUND
Foreign currency forward contracts open at April 30, 2000:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT AMOUNT CONTRACT AMOUNT APPRECIATION/
SOLD PURCHASED (DEPRECIATION)
---------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
--------------------------------
Euro vs. Pound Sterling, expiring 5/8/00............. E 3,660,000 L 2,108,160 $ (38,750)
Euro vs. U.S. Dollar, expiring 5/8/00................ E 3,800,000 $ 3,668,330 202,853
Euro vs. U.S. Dollar, expiring 5/8/00................ E 12,514,868 $ 12,286,000 872,844
Euro vs. U.S. Dollar, expiring 5/8/00................ E 10,368,942 $ 9,682,000 225,859
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 162,200,000 $ 1,484,464 (25,187)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 559,012,000 $ 5,329,910 126,991
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 369,700,000 $ 3,535,397 94,471
Pound Sterling vs. U.S. Dollar, expiring 5/8/00...... L 3,382,000 $ 5,374,419 81,940
</TABLE>
<TABLE>
<CAPTION>
CONTRACT AMOUNT CONTRACT AMOUNT
PURCHASED SOLD
---------------- ----------------
<S> <C> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
-------------------------------
Euro vs. U.S. Dollar, expiring 5/8/00................ E 13,867,500 $ 13,649,927 (1,003,215)
Euro vs. U.S. Dollar, expiring 5/8/00................ E 22,040,745 $ 21,586,136 (1,485,687)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 408,500,000 $ 3,926,565 (124,514)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 95,600,000 $ 920,559 (30,776)
Pound Sterling vs. U.S. Dollar, expiring 5/8/00...... L 1,855,000 $ 2,937,053 (34,170)
Swedish Krona vs. U.S. Dollar, expiring 7/17/00...... SK 21,237,714 $ 2,455,000 (70,567)
-----------
Net unrealized depreciation on foreign currency forward contracts: $(1,207,908)
===========
</TABLE>
153
<PAGE> 156
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
INTERNATIONAL BOND FUND
Foreign currency forward contracts open at April 30, 2000:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT AMOUNT CONTRACT AMOUNT APPRECIATION/
SOLD PURCHASED (DEPRECIATION)
---------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
--------------------------------
Australian Dollar vs. U.S. Dollar, expiring
5/18/00............................................ A$ 1,710,000 $ 1,079,096 $ 81,161
Canadian Dollar vs. U.S. Dollar, expiring 5/30/00.... C$ 860,000 $ 593,976 13,103
Danish Krone vs. U.S. Dollar, expiring 5/22/00....... DK 2,898,500 $ 375,691 20,919
Euro vs. U.S. Dollar, expiring 5/8/00................ E 3,295,551 $ 3,244,000 238,564
Euro vs. U.S. Dollar, expiring 5/8/00................ E 2,307,898 $ 2,155,000 50,271
Euro vs. Pound Sterling, expiring 5/8/00............. E 1,240,000 L 714,240 (13,129)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 48,197,923 $ 455,000 6,405
Pound Sterling vs. U.S. Dollar, expiring 5/8/00...... L 2,442,000 $ 3,897,285 75,809
</TABLE>
<TABLE>
<CAPTION>
CONTRACT AMOUNT CONTRACT AMOUNT
PURCHASED SOLD
---------------- ----------------
<S> <C> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
-------------------------------
Australian Dollar vs. U.S. Dollar, expiring
5/18/00............................................ A$ 1,880,100 $ 1,140,246 (43,044)
Euro vs. U.S. Dollar, expiring 5/8/00................ E 1,129,588 $ 1,095,000 (64,852)
Euro vs. U.S. Dollar, expiring 5/8/00................ E 4,762,051 $ 4,664,173 (321,336)
Euro vs. U.S. Dollar, expiring 5/8/00................ E 2,777,700 $ 2,740,276 (207,103)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 15,760,000 $ 150,711 (4,027)
Japanese Yen vs. U.S. Dollar, expiring 5/31/00....... Y 444,100,000 $ 4,064,431 68,962
Pound Sterling vs. U.S. Dollar, expiring 5/8/00...... L 417,800 $ 665,257 (11,443)
Swedish Krona vs. U.S. Dollar, expiring 7/17/00...... SK 7,482,942 $ 865,000 (24,864)
-----------
Net unrealized depreciation on foreign currency forward contracts: $ (134,604)
===========
</TABLE>
(K)
PURCHASED AND WRITTEN OPTIONS. Certain Funds may write covered call and put
options on its portfolio securities or foreign currencies. Premiums are received
and are recorded as liabilities. The liabilities are subsequently adjusted to
reflect the current value of the options written. Premiums received from writing
options which expire are treated as realized gains. Premiums received from
writing options which are exercised or are cancelled in closing purchase
transactions are added to the proceeds or netted against the amount paid on the
transaction to determine the realized gain or loss. By writing a covered call
option, a Fund foregoes in exchange for the premium the opportunity for capital
appreciation above the exercise price should the market price of the underlying
security or foreign currency increase. By writing a covered put option, a Fund,
in exchange for the premium, accepts the risk of a decline in the market value
of the underlying security or foreign currency below the exercise price.
Certain Funds may purchase call and put options on its portfolio securities
or foreign currencies. A Fund may purchase call options to protect against an
increase in the price of the security or foreign currency it anticipates
purchasing. A Fund may purchase put options on its securities or foreign
currencies to protect against a decline in the value of the security or foreign
currency or to close out covered written put positions. A Fund may also purchase
options to seek to enhance returns. Risks may arise from an imperfect
correlation between the change in market value of the securities or foreign
currencies held by the Fund and the prices of options relating to the securities
or foreign currencies purchased or sold by the Fund and from the possible lack
of a liquid secondary market for an option. The maximum exposure to loss for any
purchased option is limited to the premium initially paid for the option.
154
<PAGE> 157
MAINSTAY
INSTITUTIONAL FUNDS INC.
INTERNATIONAL EQUITY FUND
Written option activity for the six months ended April 30, 2000 was as follows:
<TABLE>
<CAPTION>
NOTIONAL
AMOUNT PREMIUM
----------- ----------
<S> <C> <C>
Options outstanding at October 31, 1999..................... -- --
Options--written............................................ (40,445,000) $(195,467)
Options--buybacks........................................... 11,100,000 67,377
Options--expired............................................ 18,245,000 33,629
----------- ---------
Options outstanding at April 30, 2000....................... (11,100,000) $ (94,461)
=========== =========
</TABLE>
INTERNATIONAL BOND FUND
Written option activity for the six months ended April 30, 2000 was as follows:
<TABLE>
<CAPTION>
NOTIONAL
AMOUNT PREMIUM
----------- ----------
<S> <C> <C>
Options outstanding at October 31, 1999..................... -- --
Options--written............................................ (13,082,000) $ (68,942)
Options--buybacks........................................... 4,100,000 24,887
Options--expired............................................ 4,882,000 9,164
----------- ---------
Options outstanding at April 30, 2000....................... (4,100,000) $ (34,891)
=========== =========
</TABLE>
(L)
CONCENTRATION. At April 30, 2000, substantially all of the International Equity
Fund's, EAFE Index Fund's and International Bond Fund's net assets consisted of
securities of issuers which are denominated in foreign currencies. Changes in
currency exchange rates will affect the value of and investment income from such
securities.
As of April 30, 2000, the International Equity Fund, the EAFE Index Fund and the
International Bond Fund invested approximately 25.4%, 30.4% and 28.9%,
respectively, of its net assets in issuers in Japan. The issuer's abilities to
meet their obligations may be affected by economic or political developments in
Japan.
Substantially all of the International Equity Fund's, EAFE Index Fund's and
International Bond Fund's net assets consist of securities which are generally
subject to greater price volatility, limited capitalization and liquidity, and
higher rates of inflation than securities of companies based in the United
States. In addition, issuers of certain securities may be subject to substantial
governmental involvement in the economy and social, economic and political
uncertainty.
(M)
FUTURES CONTRACTS. A futures contract is an agreement to purchase or sell a
specified quantity of an underlying instrument at a specified future date and
price, or to make or receive a cash payment based on the value of a securities
index foreign currency or interest rate. During the period the futures contract
is open, changes in the value of the contract are recognized as unrealized gains
or losses by "marking to market" such contract on a daily basis to reflect the
market value of the contract at the end of each day's trading. A Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
"variation margin". When the futures contract is closed, the Fund records a
realized gain or loss equal to the difference between the proceeds from (or cost
of) the closing transaction and the Fund's basis in the contract. Futures
contracts are used for hedging purposes to seek to enhance return: (see Note 5).
155
<PAGE> 158
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
(N)
MORTGAGE DOLLAR ROLLS. A mortgage dollar roll ("MDR") is a transaction in which
a Fund sells mortgage-backed securities ("MBS") from its portfolio to a
counterparty from whom it simultaneously agrees to buy a similar security on a
delayed delivery basis. The MDR transactions of a Fund are classified as
purchase and sale transactions. The securities sold in connection with the MDRs
are removed from the portfolio and a realized gain or loss is recognized. The
securities the Funds have agreed to acquire are included at market value in the
portfolio of investments and liabilities for such purchase commitments are
included as payables for investments purchased. The Fund maintains a segregated
account with its custodian containing securities from its portfolio having a
value not less than the repurchase price, including accrued interest. MDR
transactions involve certain risks, including the risk that the MBS returned to
the Fund at the end of the roll, while substantially similar, could be inferior
to what was initially sold to the counterparty.
(O)
SECURITIES LENDING. Each Fund may lend its securities to broker-dealers and
financial institutions. The loans are secured by collateral (cash or securities)
at least equal at all times to the market value of the securities loaned. The
Fund may bear the risk of delay in recovery of, or loss of rights in, the
securities loaned should the borrower of the securities experience financial
difficulty. The Fund receives compensation for lending its securities in the
form of fees or it retains a portion of interest on the investment of any cash
received as collateral. The Fund also continues to receive interest and
dividends on the securities loaned and any gain or loss in the market price of
the securities loaned that may occur during the term of the loan will be for the
account of the Fund.
At April 30, 2000, the Bond Fund and Short-Term Bond Fund had portfolio
securities with a fair market value of $18,259,515 and $9,284,320, respectively,
on loan to broker-dealers and government securities dealers.
Cash collateral received by the Bond Fund and Short-Term Bond Fund are
invested in investment grade commercial paper, or other securities in accordance
with the Funds' Securities Lending Procedures. Such investments are included as
an asset and a corresponding liability in the Statement of Assets and
Liabilities. While these Funds invest cash collateral in investment grade
securities or other "high quality" investment vehicles, the Funds bear the risk
that liability for the collateral may exceed the value of the investment.
Non-cash collateral received and held by the Bond Fund and the Short-Term
Bond Fund, in the form of U.S. Government obligations, had a value of $128,006
and $50,688, respectively, at the six months ended April 30, 2000.
Net income earned on securities lending amounted to $71,312 and $9,166, net
of broker fees and rebates, for the Bond Fund and Short-Term Bond Fund,
respectively, for the six months ended April 30, 2000 and is included as
interest income on the Statement of Operations.
156
<PAGE> 159
MAINSTAY
INSTITUTIONAL FUNDS INC.
BOND FUND
Investments made with cash collateral at April 30, 2000:
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C>
CASH & CASH EQUIVALENTS
AIM Institutional Funds Group............................... 825,475 $ 825,475
Cash with Security Lending Agent............................ 73,123
-----------
898,598
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
SHORT-TERM COMMERCIAL PAPER
Computer Sciences Corp.
6.16%, due 5/30/00........................................ $3,225,000 3,209,153
Concord Minuteman Capital Co. LLC
6.08%, due 5/1/00......................................... 1,070,000 1,070,000
Stellar Funding Group, Inc.
6.03%, due 5/15/00........................................ 3,680,000 3,671,470
-----------
7,950,623
-----------
REPURCHASE AGREEMENTS
Prudential Securities Inc.
6.19%, due 5/1/00
(Collateralized by
$1,429,206 Bank One Corp.
6.4881%, due 1/28/02 Market Value $1,500,666
$2,257,071 GE Capital Mortgage Services, Inc.
7.985%, due 10/25/26 Market Value $2,369,924
$2,507,714 MBNA Corp.
7.22%, due 2/9/01 Market Value $2,633,100
$1,908,180 Penney (JC) Co., Inc.
6.875%, due 10/15/15 Market Value $2,003,590
$1,659,150 Small Business Administration Pool # 504673
9.875%, due 8/25/24 Market Value $1,742,107
$238,679 Vanderbilt Mortgage Finance
Series 1998-C Class 2A1
6.6063%, due 10/7/28 Market Value $250,613)............. 10,000,000 10,000,000
-----------
Total investments made with cash collateral................. $18,849,221
===========
</TABLE>
Non-cash collateral investments at April 30, 2000:
<TABLE>
<S> <C> <C>
United States Treasury Bonds
6.25%, due 8/15/23........................................ 75,000 $ 76,031
7.50%, due 11/15/16....................................... 45,000 51,975
-----------
Total non-cash collateral................................... $ 128,006
===========
Total collateral............................................ $18,977,227
===========
</TABLE>
157
<PAGE> 160
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
SHORT-TERM BOND FUND
Investments made with cash collateral at April 30, 2000:
<TABLE>
<CAPTION>
SHARES VALUE
---------- ----------
<S> <C> <C>
CASH & CASH EQUIVALENTS
AIM Institutional Funds Group............................... 230,529 $ 230,529
Cash with Security Lending Agent............................ 14,378
----------
244,907
----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
SHORT-TERM COMMERCIAL PAPER
Concord Minutemen Capital Co. LLC
6.08%, due 5/1/00......................................... $1,220,000 1,220,000
Eminent Funding I Ltd.
6.11%, due 5/17/00........................................ 1,226,000 1,222,682
Fairway Finance Corp.
6.23%, due 6/13/00........................................ 1,222,000 1,213,023
Newport Funding Corp.
6.06%, due 5/5/00......................................... 1,227,000 1,226,175
Stellar Funding Group Inc.
6.03%, due 5/15/00........................................ 1,536,000 1,532,440
Sydney Capital Corp.
6.23%, due 6/6/00......................................... 1,553,000 1,543,434
----------
7,957,754
----------
REPURCHASE AGREEMENTS
Prudential Securities Inc.
6.19%, due 5/1/00
(Collateralized by
$1,499,474 Salomon Smith Barney Holdings Inc.
8.59%, due 7/23/02 Market Value $1,499,474
$75,527 Vanderbilt Mortgage Finance
Series 1998-C Class 2A1
6.61%, due 10/7/28 Market Value $75,527)................ 1,500,000
----------
Total investments made with cash collateral................. $9,702,661
==========
Non-cash collateral received and held by the Portfolio at April 30, 2000:
United States Treasury Bond
6.25%, due 8/15/23........................................ 50,000 $ 50,688
----------
Total non-cash collateral................................... $ 50,688
==========
Total collateral............................................ $9,753,349
==========
</TABLE>
--------------------------------------------------------------------------------
NOTE 3 -- Fees and Related Party Policies:
--------------------------------------------------------------------------------
(A)
MANAGER, SUBADVISORS, AND SUB-ADMINISTRATOR. MainStay Management LLC (the
"Manager"), an indirect wholly-owned subsidiary of New York Life Insurance
Company ("New York Life"), serves as manager and provides management services to
the Company under a Management Agreement. MacKay Shields LLC ("MacKay Shields"),
a registered investment adviser and an indirect wholly-owned subsidiary of New
York Life, serves as subadvisor to the Growth Equity Fund, International Equity
Fund, Value Equity Fund, Bond Fund, International Bond Fund and the Short-Term
Bond Fund under a Sub-Advisory Agreement with the Manager. Through March 31,
2000, New York Life served as subadvisor to the Money Market Fund under a
Sub-Advisory Agreement with the Manager. Effective April 1, 2000, New York Life
Asset Management Operating Company LLC ("NYLAM"), an indirect wholly-owned
subsidiary of New York Life, replaced New York Life as subadvisor. Monitor
Capital Advisors LLC ("Monitor Capital"), a registered investment adviser and an
indirect wholly-owned subsidiary of New York Life, serves as subadvisor to the
Asset Manager Fund, EAFE Index Fund, Indexed Equity Fund and Indexed Bond Fund
under a Sub-Advisory Agreement with the Manager. Through March 31, 2000, the
Manager delegated certain of its administrative responsibilities to New York
Life pursuant to a Sub-Administration Agreement between the Manager and New York
Life. New York Life no longer serves as sub-administrator or receives fees from
the Manager.
158
<PAGE> 161
MAINSTAY
INSTITUTIONAL FUNDS INC.
The Company, on behalf of each Fund, pays the Manager a monthly fee for the
services performed and facilities furnished at an annual rate of average daily
net assets of that Fund as follows:
<TABLE>
<S> <C>
Growth Equity Fund............. .85%
Indexed Equity Fund............ .50%
Value Equity Fund.............. .85%
Asset Manager Fund............. .65%
International Equity Fund...... .85%
EAFE Index Fund................ .95%
International Bond Fund........ .80%
Bond Fund...................... .75%
Indexed Bond Fund.............. .50%
Short-Term Bond Fund........... .60%
Money Market Fund.............. .50%
</TABLE>
Pursuant to the terms of the Sub-Advisory Agreements between the Manager and
each of the above referenced subadvisors, the Manager pays each Fund's
respective subadvisor a monthly fee at an annual rate of average daily net
assets of that Fund as follows:
<TABLE>
<S> <C>
Growth Equity Fund............. .25%
Indexed Equity Fund............ .10%
Value Equity Fund.............. .25%
Asset Manager Fund............. .15%
International Equity Fund...... .35%
EAFE Index Fund................ .15%
International Bond Fund........ .30%
Bond Fund...................... .20%
Indexed Bond Fund.............. .10%
Short-Term Bond Fund........... .15%
Money Market Fund.............. .10%
</TABLE>
Pursuant to the terms of the Sub-Administration Agreement between the
Manager and New York Life, the Manager paid New York Life a monthly fee through
March 31, 2000 at an annual rate of average daily net assets of each Fund as
follows:
<TABLE>
<S> <C>
Growth Equity Fund............. .60%
Indexed Equity Fund............ .40%
Value Equity Fund.............. .60%
Asset Manager Fund............. .50%
International Equity Fund...... .50%
EAFE Index Fund................ .80%
International Bond Fund........ .50%
Bond Fund...................... .55%
Indexed Bond Fund.............. .40%
Short-Term Bond Fund........... .45%
Money Market Fund.............. .40%
</TABLE>
The Manager voluntarily agreed to assume a portion of the Fund's operating
expenses for the six months ended April 30, 2000 and, for the following Funds to
the extent the total expenses (excluding service fees and distribution fees) on
an annualized basis exceeded the indicated percentages:
<TABLE>
<S> <C>
Indexed Equity Fund............ .30%
EAFE Index Fund................ .94%
International Bond Fund........ .95%
Bond Fund...................... .75%
Indexed Bond Fund.............. .50%
Short-Term Bond Fund........... .60%
Money Market Fund.............. .50%
</TABLE>
In connection with the voluntary expense limitations, the Manager assumed
the following expenses for six months ended April 30, 2000:
<TABLE>
<S> <C>
Indexed Equity Fund**....... $1,959,736
EAFE Index Fund............. 150,572
International Bond Fund..... 34,138
Bond Fund................... 91,132
Indexed Bond Fund........... 94,975
Short-Term Bond Fund........ 63,262
Money Market Fund........... 132,476
</TABLE>
------------
** For the Indexed Equity Fund, the Manager, assumed $1,550,622. Monitor
Capital, the subadvisor, assumed $409,114.
The Growth Equity Fund, Value Equity Fund, Asset Manager Fund and the
International Equity Fund do not have a voluntary expense limitation.
These voluntary expense limitations will remain in effect through October
31, 2000, after which they may be terminated or revised at anytime.
(B)
DISTRIBUTOR. NYLIFE Distributors Inc. ("NYLIFE Distributors"), an indirect
wholly-owned subsidiary of New York Life, serves as the Company's distributor
and principal underwriter (the "Distributor") pursuant to a
159
<PAGE> 162
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Distribution Agreement. The Distributor is not obligated to sell any specific
amount of the Company's shares, and receives no compensation from the Company
pursuant to the Distribution Agreement.
(C)
SERVICE AND DISTRIBUTION FEES. In accordance with the Shareholder Services
Plans for the Institutional Service Class shares and the Money Market Fund Sweep
Shares Class, the Manager has agreed to provide, through its affiliates or
independent third parties, various shareholder and administrative support
services to Institutional Service Class shareholders and to Money Market Fund
Sweep Shares Class shareholders, respectively. For its services, the Manager is
entitled to a Shareholder Service Fee accrued daily and paid monthly at an
annual rate of 0.25% of the average daily net assets attributable to the
Institutional Service Class of each Fund and the Money Market Sweep Shares Class
of the Money Market Fund. Prior to April 1, 2000, New York Life provided these
services and received these fees.
The Company, with respect to the Money Market Fund Sweep Shares Class, has
adopted a Distribution Plan in accordance with the provisions of Rule 12b-1
under the Investment Company Act. Pursuant to the Distribution Plan, NYLIFE
Securities Inc., an indirect wholly owned subsidiary of New York Life, NYLIFE
Distributors, or any other broker-dealer or other financial institution is
entitled to receive a monthly service fee from the Money Market Fund at an
annual rate of 0.25% of the average daily net assets of the Fund's Money Market
Fund Sweep Shares Class for services in support of distribution activities.
(D)
TRANSFER, DIVIDEND DISBURSING AND SHAREHOLDER SERVICING AGENT. MainStay
Shareholder Services LLC ("MSS"), an indirect wholly-owned subsidiary of New
York Life, is the Fund's transfer, dividend disbursing and shareholder servicing
agent. MSS has entered into an agreement with Boston Financial Data Services
("BFDS"), by which BFDS will perform certain of the services for which MSS is
responsible. Transfer agent expenses accrued for the six months ended April 30,
2000 were as follows:
<TABLE>
<S> <C>
Growth Equity Fund............ $245,198
Indexed Equity Fund........... 29,955
Value Equity Fund............. 219,783
Asset Manager Fund............ 219,560
International Equity Fund..... 13,862
EAFE Index Fund............... 14,130
International Bond Fund....... 13,170
Bond Fund..................... 15,206
Indexed Bond Fund............. 14,635
Short-Term Bond Fund.......... 14,541
Money Market Fund............. 26,870
</TABLE>
(E)
DIRECTORS FEES. Directors, other than those affiliated with the Manager, New
York Life, MacKay Shields, Monitor Capital or NYLIFE Distributors, are paid an
annual fee of $24,000 and $1,000 for each Board of Directors and Committee
meeting attended plus reimbursement for travel and out-of-pocket expenses.
(F)
CAPITAL. The Company has been advised that at April 30, 2000 affiliates of New
York Life owned a significant number of shares of the Funds with the following
market values:
<TABLE>
<S> <C>
Growth Equity Fund....... $1,066,749,740
Indexed Equity Fund...... 1,405,500,011
Value Equity Fund........ 606,824,357
Asset Manager Fund....... 439,429,490
International Equity
Fund................... 129,820,088
EAFE Index Fund.......... 50,062,039
International Bond
Fund................... 44,644,613
Bond Fund................ 154,082,692
Indexed Bond Fund........ 104,665,134
Short-Term Bond Fund..... 18,523,951
Money Market Fund........ 140,762,749
</TABLE>
From time to time, a Fund may have a concentration of several shareholders
holding a significant percentage of shares outstanding. Investment activities of
these shareholders could have a material impact on the Fund.
160
<PAGE> 163
MAINSTAY
INSTITUTIONAL FUNDS INC.
(G)
OTHER. Fees for the cost of legal services provided to the Company by the
Office of General Counsel of New York Life are charged to the Funds. For the six
months ended April 30, 2000, these fees were as follows:
<TABLE>
<CAPTION>
<S> <C>
Growth Equity Fund............. $24,924
Indexed Equity Fund............ 33,963
Value Equity Fund.............. 14,474
Asset Manager Fund............. 11,729
International Equity Fund...... 3,480
EAFE Index Fund................ 1,579
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
International Bond Fund........ $1,028
Bond Fund...................... 3,640
Indexed Bond Fund.............. 2,836
Short-Term Bond Fund........... 619
Money Market Fund.............. 8,815
</TABLE>
--------------------------------------------------------------------------------
NOTE 4 -- Federal Income Tax:
--------------------------------------------------------------------------------
At October 31, 1999 for federal income tax purposes, capital loss
carryforwards, as shown in the table below, were available to the extent
provided by regulations to offset future realized gains of each respective Fund
through the years indicated. To the extent that these loss carryforwards are
used to offset future capital gains, it is probable that the capital gains so
offset will not be distributed to shareholders.
<TABLE>
<CAPTION>
CAPITAL LOSS
AVAILABLE THROUGH AMOUNT (000'S)
----------------- --------------
<S> <C> <C>
Value Equity Fund.................................... 2007 $25,638
=======
Bond Fund............................................ 2002 $ 5,265
2004 1,625
2007 8,597
=======
$15,487
=======
Indexed Bond Fund.................................... 2004 $ 1,439
2005 44
2006 111
2007 1,728
=======
$ 3,322
=======
Short-Term Bond Fund................................. 2001 $ 101
2002 4,478
2003 1,770
2004 485
2005 173
2007 473
=======
Money Market Fund.................................... 2006 $ 22
=======
$ 7,480
=======
</TABLE>
The International Equity Fund and the Money Market Fund utilized $672,107 and
$5,267, respectively, of capital loss carryforwards during the ten months ended
October 31, 1999.
161
<PAGE> 164
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
--------------------------------------------------------------------------------
NOTE 5 -- Financial Investments:
--------------------------------------------------------------------------------
The Value Equity Fund's, Asset Manager Fund's, International Equity Fund's,
EAFE Index Fund's and International Bond Fund's use of foreign currency forward
exchange contracts involves, to varying degrees, elements of market risk in
excess of the amount recognized in the statement of assets and liabilities. The
contract amount reflects the extent of each Fund's involvement in these
financial instruments. Risks arise from the possible movements in the foreign
exchange rates underlying these instruments. The unrealized appreciation
(depreciation) on foreign currency exchange contracts reflects each Fund's
exposure at period end to credit loss in the event of a counterparty's failure
to perform its obligations.
The Asset Manager Fund and EAFE Index Fund use foreign currency exchange
contracts to minimize the risk of loss to the Fund from adverse changes in the
relationship between the U.S. dollar and foreign currencies.
The Value Equity Fund, International Equity Fund and International Bond Fund
enter into forward currency exchange contracts in order to protect against
uncertainty in the level of future foreign currency exchange rates, or to
increase the Funds' investment returns in the case of the International Equity
Fund and the International Bond Fund.
The Indexed Equity Fund's, Asset Manager Fund's, EAFE Index Fund's and
Indexed Bond Fund's use of futures contracts involves, to varying degrees,
elements of market risk in excess of the amount recognized in the statement of
assets and liabilities. The contract or notional amounts and variation margin
reflect the extent of each Fund's involvement in open futures positions. Risks
arise from possible imperfect correlation in movements in the price of futures
contracts, interest rates and the underlying hedged assets, and the possible
inability of counterparties to meet the terms of their contracts. However, each
Fund's activities in futures contracts are conducted through regulated exchanges
which minimize counterparty credit risks.
The Indexed Equity Fund and EAFE Index Fund invest in stock index futures
contracts to maintain cash reserves while remaining fully invested, to
facilitate trading, or to reduce transaction costs. The Asset Manager Fund has
entered into contracts for the future delivery of debt securities and invests in
stock index futures contracts to rebalance the Fund's portfolio composition and
risk profile to meet asset class constraints. The Indexed Bond Fund invests in
contracts for the future delivery of debt securities in order to attempt to
maintain cash reserves while remaining fully invested, to facilitate trading, or
to reduce transaction costs.
--------------------------------------------------------------------------------
NOTE 6 -- Line of Credit:
--------------------------------------------------------------------------------
The Funds, with the exception of the Money Market Fund, maintain a line of
credit of $375,000,000 with a syndicate of banks in order to secure a source of
funds for temporary purposes to meet unanticipated or excessive shareholder
redemption requests. The Funds pay a commitment fee, at an annual rate of .075%
of the average commitment amount, regardless of usage to the Bank of New York,
which acts as agent to the syndicate. Such commitment fees are allocated amongst
the Funds based upon net assets and other factors. Interest on any revolving
credit loan is charged based upon the Federal Funds Advances rate. There were no
borrowings on the line of credit during the period ended April 30, 2000.
162
<PAGE> 165
(THIS PAGE INTENTIONALLY LEFT BLANK)
163
<PAGE> 166
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
--------------------------------------------------------------------------------
NOTE 7-- Purchases and Sales of Securities (in 000's):
--------------------------------------------------------------------------------
During the six months ended April 30, 2000, purchases and sales of
securities, other than securities subject to repurchase transactions and
short-term securities, were as follows:
<TABLE>
<CAPTION>
Growth Equity Fund Indexed Equity Fund Value Equity Fund Asset Manager Fund
Purchases Sales Purchases Sales Purchases Sales Purchases Sales
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government
securities $ -- $ -- $ -- $ -- $ -- $ -- $ 4,768 $ 10,000
All others 379,278 378,667 68,742 369,240(b) 303,355 338,544 108,599 24,002
-----------------------------------------------------------------------------------------
Total $379,278 $378,667 $ 68,742 $369,240 $303,355 $338,544 $113,367 $ 34,002
=========================================================================================
</TABLE>
--------------------------------------------------------------------------------
NOTE 8-- Capital Share Transactions (in 000's):
--------------------------------------------------------------------------------
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Growth Equity Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,270 80 5,302 365 4,734 119
Shares issued in
reinvestment of
dividends and
distributions 2,612 61 287 7 1,838 28
---------------------------------------------------------------------------------------------
4,882 141 5,589 372 6,572 147
Shares redeemed (2,086) (195) (5,914) (127) (4,977) (93)
---------------------------------------------------------------------------------------------
Net increase
(decrease) 2,796 (54) (325) 245 1,595 54
=============================================================================================
<CAPTION>
Indexed Equity Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
<S> <C> <C> <C> <C> <C> <C>
Shares sold 3,230 451 6,739 902 11,881 806
Shares issued in
reinvestment of
dividends and
distributions 2,125 79 403 15 1,778 41
---------------------------------------------------------------------------------------------
5,355 530 7,142 917 13,659 847
Shares redeemed (10,485) (441) (6,855) (337) (5,280) (264)
---------------------------------------------------------------------------------------------
Net increase
(decrease) (5,130) 89 287 580 8,379 583
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
International Equity Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,735 1 1,534 10 3,583 4
Shares issued in
reinvestment of
dividends and
distributions 431 2 32 --(a) 343 2
---------------------------------------------------------------------------------------------
3,166 3 1,566 10 3,926 6
Shares redeemed (2,567) (12) (1,792) (15) (3,477) (10)
---------------------------------------------------------------------------------------------
Net increase
(decrease) 599 (9) (226) (5) 449 (4)
=============================================================================================
<CAPTION>
EAFE Index Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,549 13 5,615 9 2,636 8
Shares issued in
reinvestment of
dividends and
distributions 417 3 27 --(a) 442 3
---------------------------------------------------------------------------------------------
2,966 16 5,642 9 3,078 11
Shares redeemed (1,903) (13) (6,050) (9) (2,690) (10)
---------------------------------------------------------------------------------------------
Net increase
(decrease) 1,063 3 (408) -- 388 1
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Indexed Bond Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 699 48 2,351 72 5,611 123
Shares issued in
reinvestment of
dividends and
distributions 1,000 22 -- -- 847 20
---------------------------------------------------------------------------------------------
1,699 70 2,351 72 6,458 143
Shares redeemed (2,355) (51) (3,139) (115) (3,138) (69)
---------------------------------------------------------------------------------------------
Net increase
(decrease) (656) 19 (788) (43) 3,320 74
=============================================================================================
<CAPTION>
Short-Term Bond Fund
Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended
April 30, 2000 October 31, 1999 1998
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,690 9 2,968 32 1,826 81
Shares issued in
reinvestment of
dividends and
distributions 295 7 -- -- 268 7
---------------------------------------------------------------------------------------------
1,985 16 2,968 32 2,094 88
Shares redeemed (3,480) (7) (2,446) (59) (2,584) (111)
---------------------------------------------------------------------------------------------
Net increase
(decrease) (1,495) 9 522 (27) (490) (23)
=============================================================================================
</TABLE>
------------
* Sweep Shares Class first offered on December 8, 1998.
(a) Less than one thousand.
(b) Included in the proceeds of sales for Indexed Equity Fund is $235,523,090
representing the value of securities disposed of in payment of redemption
in-kind.
164
<PAGE> 167
MAINSTAY
INSTITUTIONAL FUNDS INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International International
Equity Fund EAFE Index Fund Bond Fund Bond Fund Indexed Bond Fund
Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ 2,350 $ 24,261 $ 28,467 $ 14,403 $ 17,328
42,131 38,736 5,108 219 44,131 50,015 129,534 123,132 -- 9,138
--------------------------------------------------------------------------------------------------------------------
$ 42,131 $ 38,736 $ 5,108 $ 219 $ 44,131 $ 52,365 $153,795 $151,599 $ 14,403 $ 26,466
====================================================================================================================
<CAPTION>
Short-Term Bond Fund
Purchases Sales
--------------------
<S> <C>
$ 21,072 $ 37,659
2,291 2,229
--------------------
$ 23,363 $ 39,888
====================
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value Equity Fund
Institutional Institutional Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended Six months ended
April 30, 2000 October 31, 1999 1998 April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1,271 34 3,537 73 5,203 125 4,543 120
513 3 4 --(a) 14,874 179 2,333 120
---------------------------------------------------------------------------------------------------------------------------------
1,784 37 3,541 73 20,077 304 6,876 240
(4,336) (203) (13,226) (315) (12,155) (150) (3,298) (365)
---------------------------------------------------------------------------------------------------------------------------------
(2,552) (166) (9,685) (242) 7,922 154 3,578 (125)
=================================================================================================================================
<CAPTION>
Asset Manager Fund
Institutional Institutional Institutional Institutional
Class Service Class Class Service Class
------------- ------------- ------------- -------------
January 1, 1999
through Year ended
October 31, 1999 1998
-------------------------------------------------------------
<S> <C> <C> <C>
2,735 1,009 3,875 443
3,585 205 4,797 158
-------------------------------------------------------------
6,320 1,214 8,672 601
(3,630) (307) (4,061) (169)
-------------------------------------------------------------
2,690 907 4,611 432
=============================================================
</TABLE>
<TABLE>
<CAPTION>
International Bond Fund
Institutional Institutional Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Class Service Class Class Service Class Class Service Class
------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
January 1, 1999
Six months ended through Year ended Six months ended
April 30, 2000 October 31, 1999 1998 April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
65 -- 367 --(a) 1,062 2 2,139 150
90 -- 116 --(a) 392 2 1,103 16
---------------------------------------------------------------------------------------------------------------------------------
155 -- 483 --(a) 1,454 4 3,242 166
(921) (8) (427) (2) (369) (5) (1,234) (242)
---------------------------------------------------------------------------------------------------------------------------------
(766) (8) 56 (2) 1,085 (1) 2,008 (76)
=================================================================================================================================
<CAPTION>
Bond Fund
Institutional Institutional Institutional Institutional
Class Service Class Class Service Class
------------- ------------- ------------- -------------
January 1, 1999
through Year ended
October 31, 1999 1998
-------------------------------------------------------------
<S> <C> <C> <C>
1,239 528 2,773 435
--(a) --(a) 998 19
-------------------------------------------------------------
1,239 528 3,771 454
(1,728) (576) (4,316) (178)
-------------------------------------------------------------
(489) (48) (545) 276
=============================================================
</TABLE>
<TABLE>
<CAPTION>
Money Market Fund
Institutional Institutional Institutional Institutional Institutional Institutional Institutional
Class Service Class Sweep Shares Class Class Service Class Sweep Shares Class* Class
------------- ------------- ------------------- ------------- ------------- ------------------- -------------
January 1, 1999
Six months ended through
April 30, 2000 October 31, 1999
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
222,927 1,250 114,072 478,066 10,416 251,505 267,338
5,433 43 3,840 8,988 811 4,314 10,080
-------------------------------------------------------------------------------------------------------------------------
228,360 1,293 117,912 487,054 11,227 255,819 277,418
(266,967) (5,319) (72,012) (434,684) (109,362) (110,508) (273,376)
-------------------------------------------------------------------------------------------------------------------------
(38,607) (4,026) 45,900 52,370 (98,135) 145,311 4,042
=========================================================================================================================
<CAPTION>
Institutional
Sweep
Institutional Shares
Service Class Class*
------------- -------------
Period ended
1998
-----------------------------
<S> <C>
92,389 7,086
3,866 --
-----------------------------
96,255 7,086
(56,718) (129)
-----------------------------
39,537 6,957
=============================
</TABLE>
165
<PAGE> 168
OFFICERS AND DIRECTORS*
STEPHEN C. ROUSSIN
Chairman and Director
PATRICK G. BOYLE
Director
LAWRENCE GLACKEN
Director
ROBERT P. MULHEARN
Director
SUSAN B. KERLEY
Director
LINDA M. LIVORNESE
President
JEFFERSON C. BOYCE
Senior Vice President
MARC J. BROOKMAN
Executive Vice President
RICHARD ZUCCARO
Tax Vice President
JOHN FLANAGAN
Treasurer
JOSEPH J. MCBRIEN
Secretary
MANAGER
MainStay Management LLC
SUBADVISORS
New York Life Asset Management
Operating Company LLC
MacKay Shields LLC
Monitor Capital Advisors LLC
DISTRIBUTOR
NYLIFE Distributors Inc.
TRANSFER AGENT
MainStay Shareholder Services LLC
CUSTODIAN
The Bank of New York
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
LEGAL COUNSEL
Dechert Price & Rhoads
The financial information included
herein is taken from the records of
the Fund without examination by the
Fund's independent accountants who
do not express an opinion thereon.
*As of April 30, 2000.
<PAGE> 169
This report may only be distributed to Fund shareholders or when
accompanied or preceded by a current Fund prospectus.
Subadvisors
MacKay Shields LLC
Monitor Capital Advisors LLC
New York Life Asset Management Operating Company LLC
[MAINSTAY INVESTMENTS LOGO]
Distributed by NYLIFE Distributors Inc., member NASD,
300 Interpace Parkway, Building A, Parsippany, NJ 07054
02-010-0400
