------------------------------------------------
Aetna Series Fund, Inc.
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BUILD FOR
RETIREMENT. MANAGE
FOR LIFE.(SM)
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Aetna Mutual Funds
Semi-Annual Report
April 30, 1997
[AEtna
SA.AETSER-97A Retirement Services(R) Logo]
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
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President's Letter ............................... 1
Investment Review ................................ 2
Portfolios of Investments:
Aetna Money Market Fund ..................... 26
Aetna Government Fund ....................... 31
Aetna Bond Fund ............................. 33
The Aetna Fund .............................. 36
Aetna Growth and Income Fund ................ 46
Aetna Growth Fund ........................... 64
Aetna Index Plus Fund ....................... 66
Aetna Small Company Fund .................... 75
Aetna International Growth Fund ............. 78
Statements of Assets and Liabilities ............. 84
Statements of Operations ......................... 88
Statements of Changes in Net Assets .............. 92
Notes to Financial Statements .................... 101
Financial Highlights ............................. 114
<PAGE>
President's Letter
Dear Fellow Shareholder:
We are pleased to bring you this semi-annual report of the status and
performance of your Funds. Your confidence in Aetna and your investment in Aetna
Mutual Funds is appreciated by all of us involved in managing your investment
and servicing your account.
The mutual fund industry has experienced consistent, unprecedented growth since
the early 1980's. This is the result of growth in the markets and the economy, a
tradition of integrity and a commitment to servicing shareholders. Market
interruptions during this period have been brief and have not disturbed
shareholder investment behavior. We believe that when and if there is a change
in this growth cycle, shareholders should continue their consistent, long-term
investment strategies. As individual investment goals change, it is also
important for shareholders to consider their total portfolio balance and
diversification.
During the past six months, both domestic and global economies have continued
their strong growth. In a preemptive move to hedge against inflation, the
Federal Reserve increased interest rates during this period. This increase in
interest rates contributed to the stock market decline during March and April.
Looking forward, we anticipate another, modest increase in interest rates this
year; favorable for the bond markets. We continue to be neutral to cautious
about the performance of the stock markets in 1997.
We are pleased with the success of Aeltus Investment Management, Inc.,
subadvisor to the funds. We strive to bring you quality products and services to
help meet your retirement and investment needs.
Thank you for investing in our funds.
Yours sincerely,
/s/ Shaun P. Mathews
Shaun P. Mathews
President
Aetna Mutual Funds Annual Report 1
<PAGE>
[Description of Aetna Money Market Fund Line Chart]
Aetna Money Market Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year 5 Year Inception+
- ----------------------------------------------
Select Class 5.38% 4.66% 4.65%
- ----------------------------------------------
Adviser Class 5.38% 4.66% 4.65%
- ----------------------------------------------
Aetna Money Market +Aetna Money Market IBC Money Fund Report
Fund (Select Class) Fund (Adviser Class) Avg./All Taxable
Dec-91 10000 10000 10000
10104 10104 10096
10210 10210 10184
10308 10308 10263
10404 10404 10334
10488 10488 10404
10572 10572 10472
10656 10656 10541
10744 10744 10611
10834 10834 10684
10934 10934 10773
11057 11057 10878
11205 11205 11003
11365 11365 11148
11536 11536 11299
11706 11706 11446
11875 11875 11592
12031 12031 11731
12187 12187 11869
12347 12347 12009
12402 12402 12056
Apr-97 12732 12732 12201
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. Donoghue
Public Money Market Funds represents the average return for the universe of
public money market funds.
* Date of inception for the Select Class was December 27, 1991. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Money Market Fund
How did the Fund perform during the period?
The Aetna Money Market Fund (Money Market) Select and Adviser Class shares
generated a total return of 2.66%, net of fund expenses, for the six month
period ended April 30, 1997. This performance was 0.26% higher than the average
return generated by the universe of taxable money market funds tracked by
IBC/Donoghue(a) for the same six month period. As of April 30, 1997, the Fund
reported a 7-day yield of 5.29% with an average weighted maturity of 41 days.
What economic or financial market conditions impacted the Fund?
The economy grew during the period with persistent strength in certain areas
such as housing, consumer spending and job growth. Although inflation reports
had been relatively favorable, the Federal Reserve raised the Federal Funds rate
in March in response to "persisting strength of demand." Demand was certainly
strong in 1997's first quarter as domestic final sales grew at a 5.6% rate and
consumer spending rose at a 6.4% rate, the fastest pace in nine years.
2 See Definition of Indices.
<PAGE>
As a result, the money market curve, which plots yields against maturities of
one year or less, steepened in response to stronger economic data. The Fund's
shorter average maturity enabled it to take advantage of opportunities to
position investments along appropriate points on the curve as interest rates
rose.
What investments influenced the Fund's performance over the past six months?
The Fund invested approximately 30% of its holdings in adjustable rate
instruments. These are securities with coupons that reset based on a short-term
index such as the Federal Funds rate, U.S. Treasury bills or LIBOR. The coupons
are not fixed but will adjust upwards in periods of rising interest rates as the
level of the respective indices move higher. The allocation to asset backed
securities, AAA-rated securities that are generally collateralized by a pool of
assets such as automobile loans, credit card receivables or computer leases, was
also increased to add incremental yield to the Fund.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
Inflation remains the key determinant of future financial market performance. As
long as inflation remains dormant, interest rates are unlikely to move much
higher. The risk to inflation currently arises from the economy operating at a
high level with little excess slack, especially in the labor markets. We believe
that the Federal Reserve will tighten monetary policy with another interest rate
increase over the next several months. In turn, we will maintain the existing
portfolio strategy.
An investment in Money Market is neither insured nor guaranteed by the United
States Government, and there can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
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Quality Ratings
- --------------------------------------------------------------------------------
Tier 1 99.1%
Tier 2 0.9%
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Maturity Distribution
- --------------------------------------------------------------------------------
1-30 days 51.0%
31-60 days 19.3%
61-90 days 17.0%
91-120 days 2.3%
121-180 days 2.0%
181-397 days 8.4%
Aetna Mutual Funds Semi-Annual Report 3
<PAGE>
[Description of Aetna Government Fund Line Chart]
Aetna Government Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year Inception+
- ----------------------------------------------
Select Class 5.56% 4.94%
- ----------------------------------------------
Adviser Class 3.78% 4.17%
- ----------------------------------------------
Aetna Government +Aetna Government Lehman Government
Fund (Select Class) Fund (Adviser Class) Bond Index
Dec-93 10000 10000 10000
9790 9772 9699
9739 9713 9588
9784 9736 9629
9811 9804 9662
10254 10225 10118
10779 10734 10745
10932 10861 10935
11380 11285 11435
11173 11060 11176
11196 11063 11230
11382 11226 11419
11583 11405 11670
Apr-97 11738 11527 11824
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 22, 1993. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Government Fund
How did the Fund perform during the period?
For the six month period ended April 30, 1997, the Aetna Government Fund
(Government) Select Class shares returned 1.34%, net of fund expenses. The Fund
slightly outperformed the Lehman Brothers Government Index(b), which reported a
return of 1.32%, but underperformed the Lehman Intermediate Government Index(c)
which returned 1.77% for the same period. The Select Class shares' performance
placed it in the top 73% (248 out of 340) of Morningstar's general government
bond fund universe for the one year period ended April 30, 1997. Adviser Class
shares' performance for the same six month period was 1.07%, (performance does
not reflect the deduction of the 1% maximum contingent deferred sales charge),
placing it in the top 91% (310 out of 340) of Morningstar's general government
bond fund universe for the one year period ended April 30, 1997.
4 See Definition of Indices.
<PAGE>
What economic or financial market conditions impacted the Fund?
The last six months were characterized by rising interest rates in response to
strong economic growth in both the last three months of 1996 and the first three
months of 1997. This economic strength, coupled with increasing levels of
resource utilization, caused the Federal Reserve to raise the Federal Funds rate
in March 1997. Fears of a further interest rate increase by the Federal Reserve
flattened the yield curve which plots bond yields against bond maturities.
Generally speaking, the longer the term, the higher the interest rate that is
offered to make up for the additional risk of investing money for such a long
time. However, the usual curve flattened as short-term bond yields rose faster
than longer-term bonds. For example, two-year U.S. Treasury yields rose 0.54%
while 30-year U.S. Treasury yields rose 0.31% over the period. Rising interest
rates and a decline in the overall level of market volatility provided a
favorable environment for mortgage pass-through securities. Investors were
willing to place a higher value on mortgage pass-throughs because rising rates
and declining volatility suggested homeowners will be less likely to pre-pay
their mortgages, thus upholding the value of these securities.
What investments influenced the Fund's performance over the past six months?
The Fund's Mortgage pass-throughs performed well during the period. The mortgage
sector as a whole have outperformed U.S. Treasuries year-to-date by 0.80% on a
duration-adjusted basis. The Fund's seasoned high-coupon holdings did
particularly well in the early part of the year. They lagged in April, however,
when bonds rallied and volatility increased modestly. The Fund's holdings of
government agency securities also added to performance as Agency yield spreads
over U.S. Treasuries narrowed during the period.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
We believe the Federal Reserve is likely to raise the Federal Funds rate by an
additional 0.25% to 0.50% during the coming months. A preemptive action such as
this, coupled with slowing economic growth, is likely to restrain inflation.
Bonds may perform well as investors respond favorably to low inflation and begin
to anticipate the end of further interest rate hikes by the Federal Reserve.
Given this environment, the Fund is likely to maintain a duration position that
is longer than that of its peer funds. This position would reverse if we see
U.S. domestic growth continue to exceed expectations, and/or, if there are signs
of a significant pick-up in economic growth in Europe and Japan. We also expect
to maintain a significant exposure to government agency and mortgage
pass-through securities in the Fund as the yield advantage of these securities
could potentially outperform U.S. Treasuries.
Aetna Mutual Funds Semi-Annual Report 5
<PAGE>
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Quality Ratings
- --------------------------------------------------------------------------------
AAA 98.3%
Cash or Equivalents 1.7%
- --------------------------------------------------------------------------------
Maturity Distribution
- --------------------------------------------------------------------------------
0-1 years 1.7%
1-5 years 14.7%
5-10 years 13.1%
10-20 years 46.8%
20+ years 23.7%
6
<PAGE>
[Description of Aetna Bond Fund Line Chart]
Aetna Bond Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year 5 Year Inception+
- ----------------------------------------------
Select Class 6.71% 7.02% 6.50%
- ----------------------------------------------
Adviser Class 4.80% 6.21% 5.70%
- ----------------------------------------------
Aetna Bond +Aetna Bond Lehman Aggregate
Fund (Select Class) Fund (Adviser Class) Bond Index
Dec-91 10000 10000 10000
9900 9881 9872
10290 10249 10271
10860 10802 10712
10670 10643 10741
11160 11058 11185
11470 11339 11481
11771 11623 11781
11820 11642 11788
11530 11343 11450
11333 11130 11332
11428 11197 11401
11432 11179 11444
11921 11633 12021
12610 12281 12753
12827 12482 13003
13379 12996 13557
13171 12768 13317
13225 12780 13393
13463 12985 13641
13696 13215 13944
Apr-97 13985 13431 14181
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 27, 1991. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Bond Fund
How did the Fund perform during the period?
For the six month period ended April 30, 1997, the Aetna Bond Fund (Bond) Select
Class shares generated a total return of 2.11%, net of fund expenses. The Fund
outperformed the Lehman Brothers Aggregate Bond Index(d) which returned 1.70%
for the same period. The Select Class shares' performance over the one and five
year periods ended April 30, 1997 placed it in the top 43% (158 out of 369) and
50% (62 out of 124), respectively, among Morningstar's high quality corporate
bond fund universe. Adviser Class shares' performance for the same period was
1.64%, (performance does not reflect the deduction of the 1% maximum contingent
deferred sales charge), placing it the top 82% (301 out of 369) among
Morningstar's high quality corporate bond fund universe for the one year period
ended April 30, 1997.
See Definition of Indices. Aetna Mutual Funds Semi-Annual Report 7
<PAGE>
What economic or financial market conditions impacted the Fund?
Bond prices declined late in the fourth quarter as the economy began to expand
above targeted growth levels. Concerns over lofty valuation levels, tight labor
markets and the likelihood of a preemptive move by the Federal Reserve continued
into the first quarter of 1997. The Federal Open Market Committee (FOMC) did
move to raise the Federal Funds rate by 0.25% at their March meeting which, in
turn, caused the yield curve to flatten as short and intermediate term rates
rose more than longer term rates. A yield curve plots current bond yields
against bond maturities. Normally, higher yields are offered for longer
maturities to compensate for the additional risk of investing money for a longer
timeframe.
Within the investment-grade (or high-quality) bond universe, the mortgage sector
generated the best performance as volatility levels declined and demand
increased. Returns of the corporate bond sector lagged the general market as
yield spread differentials between corporate bonds and U.S. Treasuries began to
widen after reaching near historically low levels. In general, those markets or
asset classes with higher risk premiums generated higher returns over the
period. The demand for yield and favorable market technicals provided strong
support to the high-yield and emerging market bond sectors.
What investments influenced the Fund's performance over the past six months?
The investments that contributed to performance can be broken down into two
broad categories. From a structural aspect, securities with shorter maturities
and features such as adjustable-rate coupons and principal repayments are
defensive in nature and performed well as interest rates rose during the period.
Secondly, security selection contributed favorably to performance. The Fund's
holdings of supranationals, high quality bonds issued by financial institutions
that are owned by a group of sovereign governments to provide financial
assistance to member countries, outperformed the market. Modest exposure to
high-yield cable and telephone bonds also enhanced returns.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
Thus far, the economy has expanded with little evidence of inflation. The lack
of corporate pricing power has generally prevented companies from passing on
rising costs. However, tighter labor markets and the current level of resource
utilization will eventually place some pressure on prices to increase. The FOMC
has already acted to raise short term interest rates once this year. We
anticipate at least another interest rate hike over the next several months.
While our near-term outlook is cautious for the bond market, we are more
positive longer term. The economy is unlikely to maintain its current pace of
growth. Higher interest rates should act to constrain growth in the second half
of the year which in turn should bode well for bonds.
8
<PAGE>
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Quality Ratings
- --------------------------------------------------------------------------------
AAA 53.0%
AA 11.5%
A 10.4%
BBB 6.2%
BB 4.6%
B 10.0%
Other 4.3%
- --------------------------------------------------------------------------------
Maturity Distribution
- --------------------------------------------------------------------------------
0-1 years 27.1%
1-5 years 16.9%
5-10 years 13.7%
10-20 years 20.5%
20+ years 21.8%
Aetna Mutual Funds Semi-Annual Report 9
<PAGE>
[Description of The Aetna Fund Line Chart]
The Aetna Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year 5 Year Inception+
- ----------------------------------------------
Select Class 11.53% 10.84% 10.52%
- ----------------------------------------------
Adviser Class 9.69% 9.96% 9.64%
- ----------------------------------------------
<TABLE>
<CAPTION>
The Aetna +The Aetna Lehman Aggregate S&P 500 60% S&P 500/40%
Fund (Select Class) Fund (Adviser Class) Bond Index Index Lehman Aggregate
<S> <C> <C> <C> <C>
Dec-91 10000 10000 10000 10000 10000
10020 10002 9872 9747 9797
10309 10264 10271 9932 10068
10459 10397 10712 10245 10433
10669 10590 10741 10760 10758
10989 10882 11185 11231 11219
11119 10987 11481 11286 11373
11449 11292 11781 11577 11668
11709 11535 11788 11845 11833
11398 11205 11450 11396 11429
11268 11053 11332 11444 11412
11531 11293 11401 12004 11775
11509 11251 11444 12002 11794
12053 11734 12021 13170 12720
13078 12700 12753 14428 13758
13890 13477 13003 15575 14520
14522 14064 13557 16513 15294
14907 14401 13317 17400 15671
15460 14907 13393 18179 16127
16066 15469 13641 18741 16553
16394 15784 13944 19258 16974
Apr-97 17041 16327 14181 22093 18578
</TABLE>
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 27, 1991. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
The Aetna Fund
How did the Fund perform during the period?
The Aetna Fund (Aetna Fund) Select Class shares generated a total return of
3.95%, net of fund expenses, for the six month period ended April 30, 1997, as
compared to the 9.45% return of the 60%/40% mix of the S&P 500(e) and the Lehman
Brothers Aggregate Bond Index(d). The Select Class shares' performance over the
one and five year periods ended April 30, 1997 placed it in the top 57% (319 out
of 558) and 57% (102 out of 179), respectively, among balanced funds tracked by
Morningstar. Adviser Class shares' performance for the same six month period was
3.44%, (performance does not reflect the deduction of the 1% maximum contingent
deferred sales charge), placing it in the top 62% (346 out of 558) among
balanced funds tracked by Morningstar for the one year period ended April 30,
1997.
10 See Definition of Indices.
<PAGE>
What economic or financial market conditions impacted the Fund?
During the last two months of 1996, the economy began to show signs of
moderating growth. This was good news for the equity market as both large and
small company stocks performed well, but the small company sector continued to
lag behind its large company counterpart. The bond market rallied along with
stocks toward the end of 1996, but the Fund's shortened duration posture hurt
performance, somewhat. Both the stock and bond markets continued their rallies
into early 1997, but by mid February, investors' attitudes began to change.
Stronger growth, higher interest rates and a preemptive monetary policy led to
increased market volatility that lasted through much of April. Beginning with
comments by Federal Reserve Chairman Alan Greenspan in late February, and
continuing for weeks after the Federal Reserve's decision to raise interest
rates on March 25th, the stock market managed to give back all it had gained in
1997.
What investments influenced the Fund's performance over the past six months?
Over the last six months, our asset allocation was targeted at 45% large company
stocks, 10% small company stocks, 30% bonds and 15% cash. An underweight large
company stock position was held by the Fund in favor of small company stocks and
cash. The Fund's underperformance can be attributed to this position, as small
company stocks fared significantly worse than large company stocks. Over the
last six months, the Fund was slightly overweighted in technology stocks which
hurt performance as their revenues fell short of projections and earnings
expectations were subsequently lowered. Exposure to the consumer cyclical and
healthcare sectors as well as poor stock selection in the transportation,
telecommunication and financial services sectors also hampered performance.
Underweight positions in electric utilities and raw materials benefited
performance as returns in these sectors lagged the overall returns of the S&P
500 Index. Also contributing positively to performance was exposure to the
retail sector and effective stock selection in the capital goods sector.
The lackluster performance of the stock market in March and April 1997 was due
in part to higher interest rates as the bond market correctly anticipated a
Federal Reserve interest rate hike in late March. In bond holdings, the Fund's
shortened duration posture relative to the Lehman Aggregate Bond Index and
exposure to cash benefited performance during this time. In late March, as the
long-bond breached the 7% level, the Fund's duration was increased, bringing it
more in line with the Lehman Brothers Aggregate Bond Index. Over the last six
months, Aetna Fund increased holdings in emerging market debt securities, adding
exposure to Latin America, Morocco and Russia. While this group gave back some
of the ground it gained in late 1996 and into the first two months of 1997, the
emerging market sector as a whole continues to add positively to returns.
Exposure to other diversifying asset classes, such as domestic high-yield
corporate bonds and commercial mortgage-backed securities, also benefited
performance.
Aetna Mutual Funds Semi-Annual Report 11
<PAGE>
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
Given the resilience of the equity market in the face of faster economic growth
and higher interest rates, our view of the financial markets remains
neutral-to-cautious. The likelihood of another move by the Federal Reserve in
May remains a real concern unless economic growth moderates considerably and
inflation stays subdued. We expect volatility in both the stock and bond markets
to continue as long as the Federal Reserve inclination toward higher interest
rates endures.
- --------------------------------------------------------------------------------
Large Cap Portfolio Sector Breakdown
- --------------------------------------------------------------------------------
% of
Large Cap % of Over/(Under)
Sector Portfolio S&P 500 Weighting
- ------ --------- ------- ---------
Basic Materials -- 6.0% (6.0%)
Producer Goods & Services 20.0% 12.2% 7.8%
Technology 12.7% 12.1% 0.6%
Consumer Goods 33.8% 33.7% 0.1%
Services 2.0% 2.2% (0.2%)
Financial Services 16.6% 15.0% 1.6%
Utilities 14.9% 18.8% (3.9%)
- --------------------------------------------------------------------------------
Top Ten Equity Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
Tyco International Ltd. 1.2%
SunAmerica, Inc. 1.1%
Intel Corp. 1.1%
NationsBank Corp. 1.1%
TJX Companies, Inc. 1.1%
Sonat, Inc. 1.0%
Travelers Group, Inc. 1.0%
Chase Manhattan Corp. 0.9%
Compaq Computer Corp. 0.9%
American International Group, Inc. 0.9%
- --------------------------------------------------------------------------------
Top Five Fixed Income Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
U.S. Treasury Note, 5.75%, 10/31/00 6.5%
U.S. Treasury Bond, 7.25%, 05/15/16 2.2%
U.S. Treasury Bond, 5.25%, 12/31/97 2.1%
U.S. Treasury Bond, 6.75%, 08/15/26 2.1%
U.S. Treasury Bond, 6.25%, 06/30/98 1.3%
12
<PAGE>
[Description of Aetna Growth and Income Fund Line Chart]
Aetna Growth and Income Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year 5 Year Inception+
- ----------------------------------------------
Select Class 24.31% 14.81% 14.15%
- ----------------------------------------------
Adviser Class 22.41% 14.01% 13.35%
- ----------------------------------------------
Aetna Growth and Income +Aetna Growth and Income S&P 500
Fund (Select Class) Fund (Adviser Class) Index
Dec-93 10000 10000 10000
9940 9922 9747
9940 9902 9932
10299 10247 10245
10779 10701 10760
11060 10955 11231
10929 10813 11286
11199 11057 11577
11489 11319 11845
11149 10961 11396
11093 10890 11444
11413 11189 12004
11449 11207 12002
12127 11868 13170
13225 12916 14428
14350 13994 15575
15056 14652 16513
15884 15426 17400
16701 16188 18179
17397 16840 18741
17945 17360 19258
Apr-97 20213 19485 22093
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 27, 1991. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Growth and Income Fund
How did the Fund perform during the period?
Aetna Growth and Income Fund (Growth and Income) Select Class shares, generated
a return of 12.64%, net of fund expenses, for the six month period ended April
30, 1997, placing it in the top 17% (102 out of 609) and 46% (108 out of 235),
of all growth and income mutual funds tracked by Morningstar for the one and
five year periods ended April 30, 1997, respectively. Adviser Class shares'
performance for the same six month period was 12.24% (performance does not
reflect the deduction of the 1% maximum contingent deferred sales charge),
placing it in the top 22% (131 out of 609) of all growth and income mutual funds
tracked by Morningstar for the one year period ended April 30, 1997. In
comparison, the total return for the S&P 500(e) for the same period was 14.7%.
See Definition of Indices. Aetna Mutual Funds Semi-Annual Report 13
<PAGE>
What economic or financial market conditions impacted the Fund?
During the past six months, the large company stocks that make up the S&P 500
continued to achieve returns that were well above long-term historical averages.
These returns can be attributed in part to the overall positive earnings reports
for fourth quarter of 1996 and the first quarter of 1997.
What investments influenced the Fund's performance over the past six months?
In order to better control risk and pursue enhanced return potential over the
long run, we complement our large company U.S. stock holdings with investments
in a variety of asset classes outside of this core group. During these past six
months, domestic large company stocks, as represented by the S&P 500, had a
particularly strong showing relative to other asset classes. For example,
compared to the S&P 500 return of 14.7%, the Russell 2000 Small Company Stock
Index(f) returned only 1.6% over the period, and international stocks, as
represented by the Morgan Stanley Europe, Australia and Far East (MSCI EAFE)
Index(g) returned only 1.7%. Thus, our strategic decision to structure the
portfolio to be well-diversified, which we strongly believe is a sound one, did
not help us over these past six months.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
We use forward earnings yield (Earnings per share/Price) of the S&P 500 to judge
the climate of equity valuation, and compare it to the yield on the 10-year
government bond. The spread between these two expected return measures is what
drives our asset allocation decision. The spread between the S&P 500 forward
earnings yield and the 10-year bond remains unusually low, indicating that
stocks are priced higher than usual relative to bonds. Consequently, our cash
holdings for the fund were a relatively high 6.0%.
The wide divergence in relative valuation between large company and small
company domestic stocks continues, and we have taken advantage of this most
recent underperformance to increase our small and mid-sized company stock
exposure, at the expense of large company stocks.
- --------------------------------------------------------------------------------
Large Cap Portfolio Sector Breakdown
- --------------------------------------------------------------------------------
% of
Large Cap % of Over/(Under)
Sector Portfolio S&P 500 Weighting
- ------ --------- ------- ---------
Basic Materials 4.0% 6.0% (2.0%)
Producer Goods & Services 8.7% 12.2% (3.5%)
Technology 12.8% 12.1% 0.7%
Consumer Goods 38.1% 33.7% 4.4%
Services 2.0% 2.2% (0.2%)
Financial Services 13.9% 15.0% (1.1%)
Utilities 20.5% 18.8% 1.7%
14 See Definition of Indices.
<PAGE>
- --------------------------------------------------------------------------------
Top Ten Equity Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
Intel Corp. 2.5%
Microsoft Corp. 2.3%
Bristol-Meyers Squibb Co. 1.9%
BankAmerica Corp. 1.9%
Walt Disney Co. (The) 1.5%
First Union Corp. 1.3%
Chrysler Corp. 1.2%
NYNEX Corp. 1.2%
Coca-Cola Co. 1.1%
Ahmanson (H.F.) & Co. 1.1%
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
% of Notional Value* Economic Exposure*
Asset Allocation Portfolio of Options of Futures 04/30/97 10/31/96
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Cap Stocks 59% -- -- 59% 66%
Mid Cap Stocks 13% -- -- 13% --
Small Cap Stocks 10% -- -- 10% 11%
International Stocks 5% -- -- 5% 7%
Real Estate Stocks 3% -- -- 3% 4%
Special Situations** 2% -- -- 2% 3%
Convertible Securities 2% -- -- 2% 2%
Cash Equivalents 6% -- -- 6% 7%
----- ----- ----- ----- -----
Total 100% -- -- 100% 100%
</TABLE>
* "Notional value" refers to the economic value at risk, or the exposure to the
financial instruments underlying the options and futures positions. "Economic
exposure" reflects the Fund's exposure to both changes in value of the portfolio
of investments as well as the financial instruments underlying the options and
futures positions.
** The "special situations" category was created to take advantage of investment
opportunities which are "special" in the sense that they do not fit well into
our normal valuation and modeling framework. The largest category within this
group is initial public offerings, but other categories include spin-offs, newly
created securities, and stocks of companies which derive their value from
something other than assets, earnings, and dividends.
Aetna Mutual Funds Semi-Annual Report 15
<PAGE>
[Description of Aetna Growth Fund Line Chart]
Aetna Growth Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year Inception+
- ----------------------------------------------
Select Class 14.54% 19.06%
- ----------------------------------------------
Adviser Class 12.70% 18.20%
- ----------------------------------------------
Aetna Growth +Aetna Growth S&P 500
Fund (Select Class) Fund (Adviser Class) Index
Dec-93 10000 10000 10000
10250 10232 9621
9900 9860 9661
10552 10493 10134
10559 10481 10132
11343 11240 11119
12682 12548 12180
13883 13704 13149
14181 13981 13940
15048 14808 14689
15638 15361 15347
16322 16017 15821
16622 16292 16258
Apr-97 17845 17426 18651
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 23, 1993. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Growth Fund
How did the Fund perform during the period?
The Aetna Growth Fund (Growth) Select Class shares returned 7.36%, net of fund
expenses, for the six month period ended April 30, 1997, placing it in the top
83% (504 out of 609) among all growth funds tracked by Morningstar for the one
year period ended April 30, 1997. Adviser Class shares' performance for the same
six month period was 6.96%, (performance does not reflect the deduction of the
1% maximum contingent deferred sales charge), placing it in the top 87% (531 out
of 609) among all growth funds tracked by Morningstar for the one year period
ended April 30, 1997. In comparison, the S&P 500(e) returned 14.7% over the same
period.
16 See Definition of Indices.
<PAGE>
What economic or financial market conditions impacted the Fund?
The strength of the economy has occupied much of the equity market's attention
over the last year. There has been an ongoing concern that a rapidly growing
economy could create inflationary pressures which, in turn, would cause the
Federal Reserve Board (Fed) to raise interest rates. That concern finally
materialized in March 1997, as the Fed raised short term interest rates 0.25% in
response to indications of inflation in the labor markets.
What investments influenced the Fund's performance over the past six months?
The change in Fed policy had a significant effect on recent Aetna Growth Fund
performance. For example, the Fund's overweighted position in the financial
sector detracted from performance as several of the bank and financial service
holdings in the portfolio reacted negatively to the increase in interest rates.
Green Tree Financial and Wells Fargo were among the poorer performers. The
Federal Reserve's action also raised questions about the pace and
"sustainability" of earnings growth rates. The technology sector proved to be
particularly vulnerable to these concerns. An overweighted position in the
sector, along with the poor performance of the networking stocks, Ascend
Communications and Cisco Systems in particular, hurt Fund performance in the
period.
With the strength in the economy, corporate profits have proven to be more
resilient than expected. Over the last six months, and particularly in the last
quarter, corporations generally reported better than expected profits. As a
result, earnings estimates for all of 1997 were increased. Year over year,
however, the trend in earnings is still decelerating.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
As a result of this profit trend, we believe the equity markets will continue to
focus on companies with more stable earnings growth rates and rising earnings
estimate trends. A number of changes were made in the portfolio to reflect this
trend. For example, the Fund's exposure to the more cyclically sensitive raw
material sector was reduced substantially over the last six months. Positions in
the technology sector also were reduced over the period. A number of companies
with steadier profit trends were added to the portfolio during the period. The
additions include Johnson and Johnson and Bristol-Meyers Squibb in the health
care sector, Tyco Laboratories in capital goods, Safeway in the retail sector,
SunAmerica in finance, and Gillette in the consumer noncyclical sector.
The equity market is likely to continue its volatility in the coming months,
with earnings expected to rise about 9-10% this year, down from the mid-teens
growth rate of last year, and another boost in interest rates by the Fed is
anticipated in the coming months. In such an environment, the Fund will continue
to focus on issues such as those mentioned that possess above-average sales and
earnings momentum.
Aetna Mutual Funds Semi-Annual Report 17
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Sector Breakdown
- --------------------------------------------------------------------------------
% of % of Over/(Under)
Sector Portfolio S&P 500 Weighting
------ --------- ------- ---------
Basic Materials 2.5% 6.0% (3.5%)
Producer Goods & Services 19.7% 12.2% 7.5%
Technology 15.9% 12.1% 3.8%
Consumer Goods 26.8% 33.7% (6.9%)
Services 7.0% 2.2% 4.8%
Financial Services 18.8% 15.0% 3.8%
Utilities 9.3% 18.8% (9.5%)
- --------------------------------------------------------------------------------
Top Ten Equity Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
Intel Corp. 3.6%
Franklin Resources, Inc. 3.2%
Tyco International Ltd. 3.2%
Boeing Co. 3.1%
Travelers, Inc. 3.1%
Hilton Hotels Corp. 3.0%
SunAmerica, Inc. 2.9%
Caterpillar, Inc. 2.8%
TJX Companies, Inc. 2.8%
Federal National Mortgage Association 2.7%
18
<PAGE>
[Description of Aetna Small Company Fund Line Chart]
Aetna Small Company Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year Inception+
- ----------------------------------------------
Select Class -1.14% 16.72%
- ----------------------------------------------
Adviser Class -2.94% 15.87%
- ----------------------------------------------
Aetna Small Company +Aetna Small Company S&P 500 Russell 2000
Fund (Select Class) Fund (Adviser Class) Index Index
Dec-93 10000 10000 10000 10000
10070 10052 9621 9735
9650 9610 9661 9356
10320 10261 10134 10006
10130 10053 10132 9819
11162 11057 11119 10271
12525 12384 12180 11234
14138 13951 13149 12343
15010 14789 13940 12611
16227 15969 14689 13254
16459 16167 15347 13917
16448 16135 15821 13965
16228 15903 16258 13749
Apr-97 16711 16308 18651 13971
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 23, 1993. The date of
inception for the Adviser Class was April 15, 1994 For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns.
Aetna Small Company Fund
How did the Fund perform during the period?
The Aetna Small Company Fund (Small Company) Select Class shares returned 2.98%,
net of fund expenses, for the six month period ended April 30, 1997, placing it
in the top 69% (80 out of 116) of Morningstar's small company fund universe for
the one year period ended April 30, 1997. Adviser Class shares' performance for
the same six month period was 2.55%, (performance does not reflect the deduction
of the 1% maximum contingent deferred sales charge), placing it in the top 75%
(87 out of 116) of Morningstar's small company fund universe for the one year
period ended April 30, 1997. The Fund outperformed the Russell 2000 Small
Company Stock Index(f) which returned 1.6% for the same period, but
underperformed the S&P 500(e) which returned 14.7% for the period.
See Definition of Indices. Aetna Mutual Funds Semi-Annual Report 19
<PAGE>
What economic or financial market conditions impacted the Fund?
For most of the period the market struggled with concerns over higher interest
rates. These concerns led to greater market volatility, a narrower breadth in
the market, and investor's preference for larger, more liquid issues. The
concerns were realized when the Federal Reserve moved to raise interest rates in
March.
What investments influenced the Fund's performance over the past six months?
The Fund incurred very strong performance from investments in the raw materials
and retail sectors. The decision to overweight the retail sector in early
January significantly enhanced returns. Stock selection also played a very
strong role in enhancing results as evidenced by a 46% return from Burlington
Coat Factory. In raw materials, we received strong performance from Reynolds
Metals, Crompton & Knowles and H.B. Fuller, all of which advanced more than 20%.
Finally, the Fund benefited from our overweighted position and good stock
selection in consumer non-durables. On the negative side, performance was hurt
by holdings in healthcare as well as selected issues in consumer durables and
technology.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
Looking forward, we see a market that is sensitive to interest rate concerns,
inflation and the Federal Reserve's next move. These concerns may keep
investors' preference for larger, more liquid issues intact. However, this
environment is also characterized by strong corporate profits, healthy balance
sheets and a strong economy which is growing with surprisingly low inflation.
Finally, investors' preference for larger issues has been in place for over
three years. While we cannot predict when it will end, it has created many
valuation opportunities in smaller issues. We believe these opportunities can be
exploited with good stock selection, applied with a disciplined investment
strategy.
- --------------------------------------------------------------------------------
Portfolio Sector Breakdown
- --------------------------------------------------------------------------------
% of % of Over/(Under)
Sector Portfolio S&P 500 Weighting
------ --------- ------- ---------
Basic Materials 13.9% 6.0% 7.9%
Producer Goods & Services 18.0% 12.2% 5.8%
Technology 14.8% 12.1% 2.7%
Consumer Goods 24.2% 33.7% (9.5%)
Services 1.3% 2.2% (0.9%)
Financial Services 15.3% 15.0% 0.3%
Utilities 12.5% 18.8% (6.3%)
20
<PAGE>
- --------------------------------------------------------------------------------
Top Ten Equity Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
Reynolds Metals Co. 4.8%
Sterling Software, Inc. 3.6%
Church & Dwight, Inc. 3.4%
Associated Group, Inc., Class A 3.2%
Delphi Financial Group, Inc. 3.2%
Cullen/Frost Bankers, Inc. 3.1%
Crompton & Knowles Corp. 3.1%
Fisher Scientific International 2.6%
Fiberboard Corp. 2.6%
Carson Pirie Scott Co. 2.6%
Aetna Mutual Funds Semi-Annual Report 21
<PAGE>
[Description of Aetna International Growth Fund Line Chart]
Aetna International Growth Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ----------------------------------------------
1 Year 5 Year Inception+
- ----------------------------------------------
Select Class 18.30% 12.02% 9.36%
- ----------------------------------------------
Adviser Class 16.31% 11.16% 8.53%
- ----------------------------------------------
Aetna International Growth +Aetna International Growth MSCI EAFE
Fund (Select Class) Fund (Adviser Class) Index
Dec-91 10000 10000 10000
9311 9293 8821
9521 9484 9016
9171 9118 9161
8921 8848 8816
9401 9309 9881
10011 9898 10883
10821 10682 11612
11620 11450 11720
11460 11265 12137
11571 11365 12766
11829 11593 12786
11627 11366 12665
11347 11071 12910
11484 11174 13015
12384 12044 13568
12437 12079 14128
13104 12692 14547
13806 13351 14788
13856 13363 14781
13927 13420 14633
Apr-97 16099 15462 14884
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results. The
performance of Adviser Class shares reflects the deduction of the maximum
contingent deferred sales charge for the applicable period.
+ Date of inception for the Select Class was December 27, 1991. The date of
inception for the Adviser Class was April 15, 1994. For periods prior to that
date, Adviser Class performance is calculated by using the performance of the
Select Class, adjusted for fees and expenses charged to the Adviser Class.
Select Class and Adviser Class shares participate in the same portfolio of
securities. Past performance is no guarantee of future returns. International
investments involve risk not present in United States securities.
Aetna International Growth Fund
How did the Fund perform during the period?
The Aetna International Growth Fund (International Growth) Select Class shares
generating a total return of 15.6%, net of fund expenses, for the six month
period ended April 30, 1997, strongly outperforming the Morgan Stanley Europe,
Australia, and Far East (MSCI EAFE)(g) which returned 1.7% for the same period.
This performance helped place the Select Class shares' in the top 4% (16 out of
373) and 29% (25 out of 86) of Morningstar's foreign stock fund universe for the
one and five year periods ended April 30, 1997. Adviser Class shares'
performance for the same six month period was 15.21%, (performance does not
reflect the deduction of the 1% maximum contingent deferred sales charge),
placing it in the top 5% (19 out of 373) of Morningstar's foreign stock fund
universe for the one year period ended April 30, 1997. The recent outperformance
of the index has enabled International Growth to achieve respectable long-term
performance.
22 See Definition of Indices.
<PAGE>
What economic or financial market conditions impacted the Fund?
During this period, four major themes impacted the Fund. A stronger U.S. Dollar
benefited well-run global exporters in Japan and Europe. Lower interest rates in
late 1996 helped boost returns in financial dominated markets like Hong Kong.
European corporate restructuring became more widespread as the European
investment community focused on increasing shareholder value. Lastly, the U.S.
equity market, the largest market in the world, continued to post strong equity
returns. The U.S. market's performance helped all other markets by increasing
risk tolerances and infusing investors with more confidence to invest abroad.
What investments influenced the Fund's performance over the past six months?
In country selection, the Fund's overweighted position in Hong Kong helped in
1996 as global interest rates declined and an earnings rebound in Hong Kong's
property sector lead the province's main unmanaged equity index, the Hang Seng,
to record new highs. The Fund's underweight position, as well as specific
holdings in Japan such as well-managed Japanese exporters that compete in
today's global economy, helped performance. Exposure to Europe and Latin
American also contributed favorably to Fund returns. An overweighted position in
the Malaysian market hurt Fund performance as Malaysian Banking officials
announced surprise measures to cool down the country's thriving economy.
The Fund's partial hedging strategy, employed to help protect against changes in
currency values, helped performance as the U.S. Dollar gained 14% against the
German Deutschemark and 11% against the Japanese yen. The stronger U.S. economy
was a primary driver in propelling the U.S. dollar against its major currency
counterparts.
What is your near-term outlook for the markets and how will the Fund's
investment tactics change going forward?
The Fund has been increasing its Japanese exposure as record-low interest rates
have started to prop up Japan's economy, and the Japanese government continues
to address real estate problems and promote deregulation. Deregulation is
expected to reward the more efficiently run industries and remove the protected
regulations on the weak industries. Lastly, Japan is the only major market that
has not participated in the bull markets elsewhere in the world. Japan may then
become attractive to global investors who like to allocate assets to
underperforming markets.
For other investments, the Fund will maintain exposure to Latin American and
Europe while reducing weightings in Asia as their economies have begun to slow
down, thereby exposing over-built export and building sectors. The two big
events in global economics this year are expected to be the British hand-over of
Hong Kong to China and the European Monetary Union ratification. We believe
these events may produce some market jitters when adverse news surfaces, but
transpire without long-lasting equity declines.
Aetna Mutual Funds Semi-Annual Report 23
<PAGE>
- --------------------------------------------------------------------------------
Country Weightings
- --------------------------------------------------------------------------------
% of
Portfolio MSCI EAFE
--------- ---------
Japan 15.6% 30.0%
United Kingdom 11.3% 19.7%
Germany 8.7% 8.9%
France 5.2% 7.2%
Netherlands 5.1% 5.0%
Sweden 4.1% 2.4%
Switzerland 3.9% 6.4%
Finland 3.9% 0.7%
Norway 2.7% 0.6%
Spain 2.5% 2.4%
Other 37.0% 16.7%
- --------------------------------------------------------------------------------
Top Ten Equity Holdings
- --------------------------------------------------------------------------------
% of
Portfolio
---------
Skandinaviska Enskilda Banken 1.5%
Novartis AG Registered Shs 1.4%
Fuji Photo Film 1.3%
NTT Data Communications Systems Co. 1.3%
Philips Electronics NV 1.2%
ING Group NV 1.2%
Panamerican Beverages, Inc. 1.2%
Telecomunicacoes Brasileiras SA 1.2%
Alcatel Alsthom 1.2%
Tokyo Ohka Kogyo 1.2%
24
<PAGE>
- --------------------------------------------------------------------------------
Definition of Indices
- --------------------------------------------------------------------------------
(a) IBC's Money Fund Report Avg./All Taxable Index is an average of the returns
of over 250 money market mutual funds surveyed each month by IBC/Donoghue, Inc.
(b) The Lehman Brothers Government Index is an unmanaged index of government and
government agency bonds.
(c) The Lehman Brothers Intermediate Government Index, an unmanaged index,
includes those indices found in the Lehman Brothers Government Index which have
a maturity of one to three years.
(d) The Lehman Brothers Aggregate Bond Index is an unmanaged index of corporate,
government and mortgage bonds.
(e) The S&P 500 (Standard & Poor's 500) Index is a value-weighted, unmanaged
index of 500 widely held stocks considered to be representative of the stock
market in general.
(f) The Russell 2000 Index consists of the smallest 2000 companies in the
Russell 3000 Index, and represents approximately 10% of the Russell 3000 total
market capitalization. The 3000 largest U.S. companies by market capitalization,
representing nearly 98% of the U.S. equity market, comprise the Russell 3000
Index. Both indices assume reinvestment of all dividends and are unmanaged.
(g) The Morgan Stanley Capital International-Europe, Australia, Far East (MSCI
EAFE) Index is an unmanaged, market value-weighted average of the performance of
more than 900 securities listed on the stock exchanges of counties in Europe,
Australia and the Far East.
Aetna Mutual Funds Semi-Annual Report 25
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Money Market
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- -----
Asset-Backed Securities (21.4%)
Asset Backed Securities
Investment
Trust 1997-A,
5.738%, 02/16/98 $14,400,000 $ 14,400,000
Bridgestone/Firestone
Master Trust, Inc.,
5.625%, 05/12/97++ 9,500,000 9,500,000
Capita Equipment
Receivables Trust,
5.60%, 10/15/97 3,299,734 3,299,734
CARCO Auto Loan Master
Trust 1993-2,
5.705%, 11/15/98 4,500,000 4,500,000
Chase Manhattan Auto,
5.545%, 04/10/98 15,233,200 15,233,200
Corporate Asset Funding
Co., Inc., 5.34%,
05/07/97++++ 9,000,000 8,991,990
Corporate Asset Funding
Co., Inc., 5.64%,
07/16/97++++ 5,000,000 4,940,467
Dakota Certificates -
Standard Credit Card
Master Trust 1,
5.30%, 05/29/97++++ 3,000,000 2,987,633
Dakota Certificates -
Standard Credit Card
Master Trust 1,
5.33%, 05/06/97++++ 4,000,000 3,997,039
Dakota Certificates -
Standard Credit Card
Master Trust 1,
5.37%, 05/05/97++++ 8,000,000 7,995,227
Principal
Amount Value
---------- -----
Asset-Backed Securities (continued)
Dakota Certificates -
Standard Credit Card
Master Trust 1,
5.62%, 05/28/97++++ $ 4,300,000 $ 4,281,876
Dakota Certificates -
Standard Credit Card
Master Trust 1,
5.67%, 07/23/97++++ 3,000,000 2,960,783
Ford Credit Auto Lease,
5.451%, 11/15/97 3,327,842 3,327,662
Norwest Auto Trust,
5.465%, 12/05/97 4,691,594 4,691,594
REIG Commercial
Mortgage Funding
Trust, 5.738%,
12/26/97++ 7,466,667 7,466,667
WFS Financial, 5.50%,
01/16/98 2,857,860 2,857,860
----------
101,431,732
----------
Commercial Paper - Domestic (44.8%)
Alamo Funding LP,
5.55%, 05/14/97++++ 5,000,000 4,989,979
Alamo Funding LP,
5.60%, 05/28/97++++ 1,200,000 1,194,960
Alamo Funding LP,
5.60%, 06/11/97++++ 4,000,000 3,974,489
Alamo Funding LP,
5.60%, 06/16/97++++ 3,700,000 3,673,524
Avon Capital Corp.,
5.40%, 06/03/97++++ 4,750,000 4,726,488
Avon Capital Corp.,
5.60%, 06/09/97++++ 1,000,000 993,933
Avon Capital Corp.,
5.64%, 06/13/97++++ 1,500,000 1,489,895
26 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- -----
Commercial Paper - Domestic (continued)
Avon Capital Corp.,
5.65%, 06/13/97++++ $ 5,300,000 $ 5,264,232
Avon Capital Corp.,
5.65%, 06/23/97++++ 2,750,000 2,727,125
Ciesco, L.P., 5.59%,
06/05/97++++ 11,000,000 10,940,218
Ciesco, L.P., 5.60%,
02/10/98++++ 8,000,000 7,999,374
Columbia/HCA Healthcare
Corp., 5.65%,
06/25/97++++ 5,000,000 4,956,840
Columbia/HCA Healthcare
Corp., 5.70%,
06/13/97++++ 4,500,000 4,469,363
Cooper Industries,
5.70%, 05/01/97 7,649,000 7,649,000
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.31%, 05/08/97 1,300,000 1,298,658
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.31%, 06/19/97 1,000,000 992,773
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.31%, 08/07/97 2,000,000 1,971,090
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.42%, 07/22/97 2,100,000 2,074,074
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.42%, 07/29/97 550,000 542,630
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.57%, 05/28/97 1,700,000 1,692,898
Principal
Amount Value
---------- -----
Commercial Paper - Domestic (continued)
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.64%, 06/06/97 $ 2,500,000 $ 2,485,900
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.64%, 06/19/97 1,000,000 992,323
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.65%, 07/22/97 1,700,000 1,678,122
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.68%, 07/15/97 1,000,000 988,167
Cooperative Assoc. of
Tractor Dealers,
Inc., 5.70%, 07/22/97 5,561,000 5,488,800
Countrywide Home Loans,
5.58%, 05/20/97 7,565,000 7,542,721
CSW Credit Inc., 5.60%,
05/27/97 8,700,000 8,664,813
CSW Credit Inc., 5.60%,
06/11/97 9,000,000 8,942,600
Daewoo International
(America) Corp.,
5.45%, 06/03/97 8,500,000 8,457,535
Daewoo International
(America) Corp.,
5.65%, 07/21/97 12,600,000 12,439,823
Dealers Capital Access
Trust, Inc., 5.33%,
05/27/97 1,200,000 1,195,381
Dealers Capital Access
Trust, Inc., 5.35%,
08/12/97 1,900,000 1,870,917
Aetna Mutual Funds Semi-Annual Report 27
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Money Market (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- -----
Commercial Paper - Domestic (continued)
Dealers Capital Access
Trust, Inc., 5.42%,
06/03/97 $1,000,000 $ 995,032
Dealers Capital Access
Trust, Inc., 5.50%,
05/06/97 1,000,000 999,236
Dealers Capital Access
Trust, Inc., 5.50%,
05/16/97 2,000,000 1,995,417
Dealers Capital Access
Trust, Inc., 5.50%,
09/05/97 1,200,000 1,176,717
Dealers Capital Access
Trust, Inc., 5.52%,
06/17/97 1,200,000 1,191,352
Dealers Capital Access
Trust, Inc., 5.62%,
06/11/97 2,000,000 1,987,199
Dealers Capital Access
Trust, Inc., 5.65%,
06/17/97 3,600,000 3,573,445
EG&G, Inc., 5.55%,
05/22/97++ 2,800,000 2,790,935
EG&G, Inc., 5.60%,
05/12/97++ 1,200,000 1,197,947
EG&G, Inc., 5.60%,
05/20/97++ 4,200,000 4,187,587
Finova Capital Corp.,
5.67%, 07/11/97 2,260,000 2,234,728
Frontier Corp., 5.50%,
05/16/97 1,555,000 1,551,436
Frontier Corp., 5.60%,
05/13/97 5,000,000 4,990,667
Frontier Corp., 5.62%,
05/27/97 1,625,000 1,618,404
General Motors
Acceptance Corp.,
5.32%, 08/06/97 2,000,000 1,971,331
Principal
Amount Value
---------- -----
Commercial Paper - Domestic (continued)
General Signal Corp.,
5.65%, 05/01/97++++ $2,650,000 $2,650,000
General Signal Corp.,
5.65%, 05/02/97++++ 3,900,000 3,899,388
Government Development
Bank of Puerto Rico,
5.60%, 06/23/97 4,500,000 4,462,900
Government Development
Bank of Puerto Rico,
5.63%, 05/28/97 5,400,000 5,377,199
International Lease
Finance Corp.,
5.30%, 06/13/97 4,000,000 3,974,678
Jefferson Smurfit
Finance Corp.,
5.35%, 06/02/97 2,500,000 2,488,111
Jefferson Smurfit
Finance Corp.,
5.60%, 06/24/97 2,200,000 2,181,520
Jefferson Smurfit
Finance Corp.,
5.62%, 05/13/97 2,400,000 2,395,504
Jefferson Smurfit
Finance Corp.,
5.66%, 07/15/97 2,400,000 2,371,700
Jefferson Smurfit
Finance Corp.,
5.66%, 07/22/97 1,300,000 1,283,240
Transamerica Finance
Group, 5.32%,
07/07/97 2,000,000 1,980,198
Transamerica Finance
Group, 5.32%,
08/07/97 4,000,000 3,942,071
28 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- -----
Commercial Paper - Domestic (continued)
Transamerica Finance
Group, 5.62%,
05/27/97 $ 8,600,000 $ 8,565,094
----------
212,401,681
----------
Commercial Paper - Foreign (5.9%)
Abbey National Europe,
5.54%, 07/24/97 10,000,000 9,999,676
Abbey National North
America, 5.65%,
06/12/97 2,224,000 2,209,340
Svenska Handelsbanken,
Inc., 5.36%, 05/27/97 8,000,000 7,969,031
Svenska Handelsbanken,
Inc., 5.71%, 07/10/97 6,000,000 6,000,115
Xerox Mexicana S.A. DE
CV, 5.55%, 05/15/97 1,600,000 1,596,547
----------
27,774,709
----------
Corporate Bonds (7.1%)
Avco Financial
Services, 5.733%,
03/31/98 11,000,000 11,000,000
Chrysler Financial
Corp., 5.65%,
01/30/98 2,150,000 2,146,404
Chrysler Financial
Corp., 5.66%,
01/16/98 3,800,000 3,794,035
Countrywide Funding
Corp., 6.062%,
12/29/97 3,400,000 3,407,007
Principal
Amount Value
---------- -----
Corporate Bonds (continued)
Countrywide Funding
Corp., 6.19%,
01/26/98 $ 3,400,000 $ 3,409,097
First National Bank of
Boston, 5.72%,
07/08/97 7,500,000 7,500,000
Greyhound Financial
Corp., 7.95%,
05/19/97 2,300,000 2,302,470
----------
33,559,013
----------
Corporate Notes (10.3%)
Advanta National Bank,
5.818%, 09/18/97 3,150,000 3,150,427
Caterpillar Inc.,
5.35%, 08/04/97 1,000,000 985,882
Golden West Financial,
10.25%, 05/15/97 3,900,000 3,906,784
Household Bank FSB FRN,
5.71%, 09/19/97 15,540,000 15,539,400
PNC Bank N.A., 5.588%,
07/02/97 20,000,000 19,996,616
PNC Bank N.A., 5.617%,
02/20/98 3,200,000 3,198,424
Sears Roebuck & Co.,
FRN, 5.788%, 05/12/97 2,100,000 2,100,038
----------
48,877,571
----------
Medium-Term Notes (10.3%)
America Honda Finance
Corp., 5.738%,
05/01/97 8,000,000 8,000,000
American Honda Finance
Corp., 5.488%,
09/04/97++++ 4,000,000 4,000,000
Aetna Mutual Funds Semi-Annual Report 29
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Money Market (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
---------- -----
Medium-Term Notes (continued)
AT&T Capital Corp.,
5.90%, 11/05/97 $ 4,400,000 $ 4,398,724
Bankers Trust NY Corp.,
5.69%, 02/13/98++++ 14,000,000 14,000,000
Columbia/HCA Healthcare
Corp., FRN, 5.768%,
07/28/97++++ 1,750,000 1,749,925
Columbia/HCA Healthcare
Corp., FRN, 5.768%,
07/28/97++++ 1,000,000 1,000,000
Discover Credit, 7.76%,
05/13/97 4,200,000 4,202,280
General Motors
Acceptance Corp.,
5.75%, 10/08/97 5,000,000 4,998,562
General Motors
Acceptance Corp.,
5.805%, 04/13/98 6,500,000 6,501,559
----------
48,851,050
----------
Total Investments
(cost $472,895,756) (a)
472,895,756
Other assets less
liabilities 1,547,269
----------
------------
Total Net Assets $474,443,025
------------
Notes to FinanciaL Statements.
(a) The cost of investments for federal income tax
purposes is identical. There were no unrealized gains
and losses as of April 30, 1997.
++ Restricted security. This security has been determined to be illiquid under
guidelines established by the Board of Directors.
++++ Restricted security.
Category percentages are based on net assets.
30 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Government
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -----
Long-Term Bonds and Notes (97.0%)
U.S. Treasury Obligations (33.8%)
U.S. Treasury Bond,
11.25%, 02/15/15 $ 900,000 $ 1,283,907
U.S. Treasury Note,
5.875%, 08/15/98 200,000 199,438
U.S. Treasury Note,
5.875%, 01/31/99 1,300,000 1,292,688
U.S. Treasury Note,
7.00%, 07/15/06 700,000 711,594
----------
3,487,627
----------
U.S. Government Agency Obligations (22.2%)
Private Export Funding
Corp., 5.48%, 09/15/03
650,000 627,669
Small Business
Administration 91-20K,
8.25%, 11/01/11 804,660 828,526
Small Business
Administration 92-20K,
7.55%, 11/01/12 831,571 841,965
----------
2,298,160
----------
U.S. Government Agency Mortgage-Backed
Securities (36.9%)
Federal Home Loan
Mortgage Association,
11.50%, 02/01/16 398,844 450,156
Federal Home Loan
Mortgage Corp., 9.50%,
07/01/20 255,649 275,301
Federal National Mortgage
Corp., 10.50%, 04/01/19 155,432 171,412
Government National
Mortgage Association,
9.00%, 05/15/16 472,537 496,459
Principal Market
Amount Value
---------- -----
U.S. Government Agency Mortgage-Backed
Securities (continued)
Government National
Mortgage Association,
9.00%, 07/15/16 $ 426,282 $ 447,863
Government National
Mortgage Association,
7.00%, 04/15/26 983,682 953,250
Government National
Mortgage Association,
6.50%, 04/15/26 696,689 656,194
Government National
Mortgage Association -
II, 9.50%, 09/20/19 341,267 364,196
----------
3,814,831
----------
Foreign and Supranationals (4.1%)
Inter-American
Development Bank,
12.25%, 12/15/08 300,000 422,307
----------
Total Long-Term Bonds and Notes
(cost $10,157,932) 10,022,925
----------
Short-Term Investments (1.6%)
U.S. Government Agency Obligations (1.6%)
Student Loan Marketing
Association, Disc.
Note, 5.28%, 05/01/97 170,000 170,000
----------
Total Short-Term Investments
(cost $170,000) 170,000
----------
Total Investments
(cost $10,327,932) (a)
10,192,925
Other assets less
liabilities 140,526
----------
----------
Total Net Assets $10,333,451
----------
See Notes to Portfolio of Investments.
Aetna Mutual Funds Semi-Annual Report 31
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Government (continued)
- --------------------------------------------------------------------------------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes is identical. Unrealized gains and losses,
based on identified tax cost at April 30, 1997, are
as follows:
Unrealized gains .................... $ 27,674
Unrealized losses ................... (162,681)
-------------
Net unrealized loss ............ $ (135,007)
=============
Category percentages are based on net assets.
32 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Bond
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -----
Long-Term Bonds and Notes (88.4%)
U.S. Treasury Obligations (20.4%)
U.S. Treasury Bond,
6.75%, 08/15/26 $ 500,000 $ 483,438
U.S. Treasury Note,
5.25%, 12/31/97 2,500,000 2,491,415
U.S. Treasury Note,
5.875%, 04/30/98 1,000,000 999,063
U.S. Treasury Note,
6.375%, 05/15/99 500,000 500,782
U.S. Treasury Note,
6.875%, 03/31/00 2,000,000 2,023,588
----------
6,498,286
----------
U.S. Government Agency Obligations (12.8%)
Private Export Funding
Corp., 5.48%, 09/15/03 1,300,000 1,255,338
Small Business
Administration 92-20K,
7.55%, 11/01/12 831,571 841,965
Student Loan Marketing
Association, 6.47%,
07/23/97 2,000,000 2,003,400
----------
4,100,703
----------
U.S. Government Agency Mortgage-Backed
Securities (6.7%)
Federal Home Loan
Mortgage Corp.,
7.875%, 11/01/22 663,883 684,548
Federal National Mortgage
Association, 90-34 C,
0.00%, 06/25/19 215,038 200,088
Government National
Mortgage Association,
7.00%, 04/15/26 987,932 957,369
Principal Market
Amount Value
U.S. Government Agency Mortgage-Backed ---------- -----
Securities (continued)
Government National
Mortgage Association,
9.50%, 07/15/18 $ 286,807 $ 308,945
----------
2,150,950
----------
Asset-Backed Securities (1.8%)
First Chicago Master
Trust 94I-A, 5.858%,
01/15/99 583,333 584,220
----------
Corporate Bonds (19.6%)
American Express Credit
Corp., 8.50%, 06/15/99 1,000,000 1,037,165
Associates Corp. N.A.,
8.55%, 07/15/09 1,000,000 1,109,885
Commercial Credit Co.,
8.70%, 06/15/09 1,000,000 1,112,000
Echostar Communications,
2.815%++, 06/01/04 500,000 410,000
HSBC America, 7.808%,
12/15/26++++ 500,000 471,965
Paramount Communications,
Inc., 7.50%, 07/15/23 500,000 432,980
Tenet Healthcare Corp.,
7.875%, 01/15/03 300,000 297,000
Tenet Healthcare Corp.,
8.625%, 01/15/07 250,000 248,750
Time Warner, Inc.,
9.125%, 01/15/13 500,000 538,837
TRW, Inc., 9.35%, 06/04/20 500,000 591,032
----------
6,249,614
----------
See Notes to Portfolio of Investments.
Aetna Mutual Funds Semi-Annual Report 33
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Bond (continued)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -----
Foreign and Supranationals (19.1%)
African Development Bank,
8.80%, 09/01/19 $ 250,000 $ 285,775
China International
Trust, 9.00%, 10/15/06 500,000 545,000
Inter-American
Development Bank,
12.25%, 12/15/08 500,000 703,845
International Bank For
Reconstruction &
Development, 9.25%,
07/15/17 1,000,000 1,220,185
KFW International
Finance, 8.85%,
06/15/99 500,000 522,390
Korea Electric, 6.375%,
12/01/03 500,000 478,178
Panama (Republic of),
7.875%, 02/13/02++++ 200,000 195,425
Rogers Cablesystem,
10.00%, 03/15/05 500,000 526,250
Swire Pacific Ltd.,
8.50%, 09/29/04++++ 500,000 526,585
Teleport Communications,
11.125%, 07/01/07
1,000,000 688,750
United Mexican States
Government, 7.563%,
08/06/01++++ 400,000 405,200
----------
6,097,583
----------
Non-Agency Mortgage
Backed Securities (8.0%)
Marine Midland 1992-1,
8.00%, 04/25/23 931,766 938,755
Prudential Home Mortgage,
7.00%, 12/25/07 803,921 778,798
Principal Market
Amount Value
---------- -----
Non-Agency Mortgage
Backed Securities (continued)
Prudential Home Mortgage,
7.50%, 06/25/07 $ 622,254 $ 614,087
Resolution Trust Corp.
1991-17 B6, 8.20%,
09/25/21 223,369 223,647
----------
2,555,287
----------
Total Long-Term Bonds and Notes
(cost $27,908,736) 28,236,643
----------
Number of Market
Shares Value
--------- ------
Preferred Stocks (0.6%)
California Federal
Preferred Cap 8,000 201,000
----------
Total Preferred Stocks
(cost $200,000) 201,000
----------
Principal Market
Amount Value
---------- -----
Short-Term Investments (9.2%)
Cooper Industries Inc.,
Comm. Paper, 5.65%,
05/01/97++++ $ 1,066,000 1,066,000
Houston Lighting & Power,
Comm. Paper, 5.75%,
05/05/97++++ 1,065,000 1,064,320
Source One Mortgage
Services Corp., Comm.
Paper, 5.78%, 05/13/97 816,000 814,428
----------
Total Short-Term Investments
(cost $2,944,748) 2,944,748
----------
Total Investments
(cost $31,053,484) (a)
31,382,391
Other assets less
liabilities 574,984
==========
Total Net Assets $ 31,957,375
----------
34 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes is identical. Unrealized gains and losses,
based on identified tax cost at April 30, 1997, are
as follows:
Unrealized gains .................... $ 509,135
Unrealized losses ................... (180,228)
-------------
Net unrealized gain ............ $ 328,907
=============
++Effective interest rate.
++++ Restricted security.
Category percentages are based on net assets.
See Notes to Financial Statements.
Aetna Mutual Funds Semi-Annual Report 35
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Aetna Fund
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (53.9%)
Aerospace and Defense (1.7%)
AAR Corp. 900 $ 26,775
Boeing Co. 7,600 749,550
Rohr Inc.+ 1,400 21,875
Thiokol Corp. 300 19,575
United Technologies Corp. 10,400 786,499
----------
1,604,274
----------
Apparel (1.8%)
Hartmarx Corp.+ 2,700 21,600
Liz Claiborne, Inc. 9,100 411,775
Nike, Inc., Class B 12,000 675,000
Russell Corp. 400 11,100
St. John Knits, Inc. 600 23,025
Tommy Hilfiger Corp.+ 12,000 477,000
Wolverine World Wide, Inc. 1,500 60,375
----------
1,679,875
----------
Autos and Auto Equipment (0.2%)
Intermet Corp. 4,000 49,500
Kaydon Corp. 700 30,975
SPX Corp. 600 32,775
Tower Automotive, Inc.+ 1,400 51,800
Wynn's International, Inc. 900 21,713
----------
186,763
----------
Banks (2.2%)
City National Corp. 1,500 34,313
Community First
Bankshares, Inc. 2,000 64,250
Cullen/Frost Bankers, Inc. 1,900 66,500
Number of Market
Shares Value
--------- ------
Banks (continued)
First Financial Corp. 1,200 $ 31,650
First Savings Bank of
Washington
Bancorp, Inc. 900 18,900
Glendale Federal Bank FSB+ 1,200 29,850
HUBCO, Inc. 2,575 63,409
Imperial Bancorp+ 2,640 62,040
Mercantile Bankshares
Corp 1,700 62,475
ML Bancorp, Inc. 4,000 65,000
NationsBank Corp. 17,340 1,046,902
North Fork Bancorp, Inc. 1,556 61,657
Provident Bancorp. 1,575 61,425
Provident Bankshares Corp. 1,103 38,863
Riggs National Corp. 3,000 55,500
Security Capital Corp. 800 71,200
Silicon Valley Bancshares+ 900 31,500
Webster Financial Corp. 800 29,650
Westamerica Bancorp. 700 45,675
Zion Bancorporation 600 75,900
----------
2,016,659
----------
Building Materials and Construction (0.4%)
ABT Building
Products Corp.+ 2,000 43,000
Ameron, Inc. 700 34,213
Apogee Enterprises, Inc. 1,600 24,000
Arvin Industries, Inc. 1,500 39,000
Centex Corp. 700 25,200
Champion
Enterprises, Inc.+ 828 12,627
36 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Building Materials and Construction (continued)
Continental Homes Holding
Corp. 2,500 $ 39,688
Granite Construction, Inc. 700 13,913
Interface, Inc. 1,300 29,088
NCI Building
Systems, Inc.+ 1,100 34,100
Oakwood Homes Corp. 1,800 36,450
Tredegar Industries, Inc. 600 27,675
----------
358,954
----------
Chemicals (0.2%)
Church & Dwight, Inc. 900 22,950
Cytec Industries+ 1,400 52,675
Dexter Corp. 1,200 35,850
Fuller (H.B.) Co. 700 37,538
----------
149,013
----------
Commercial Services (1.6%)
Carriage Services, Inc.+ 500 8,500
Culligan Water
Technologies, Inc.+ 500 20,438
Daisytek
International Corp.+ 1,000 27,250
Electro Rent Corp.+ 2,000 46,000
Philip Environmental,
Inc.+ 2,200 34,650
Stewart Enterprises, Inc. 1,500 49,500
United Waste
Systems, Inc.+ 3,900 131,625
US Filter Corp.+ 22,900 695,588
USA Waste Services, Inc.+ 14,500 474,875
USCS International, Inc.+ 1,300 21,450
Number of Market
Shares Value
--------- ------
Commercial Services (continued)
Wackenhut Corp., Class B 2,200 $ 31,075
----------
1,540,951
----------
Computer Software (2.4%)
BMC Software, Inc. 12,200 527,650
Brooktrout
Technology, Inc.+ 500 5,688
Cadence Design
Systems, Inc.+ 19,800 633,600
Cisco Systems, Inc.+ 10,900 564,075
Microsoft Corp.+ 3,400 413,100
National Data Corp. 800 30,000
Overland Data, Inc.+ 800 4,300
Viasoft, Inc.+ 600 25,500
Wall Data, Inc.+ 1,400 29,313
----------
2,233,226
----------
Computers and Office Equipment (3.6%)
Adaptec, Inc.+ 17,300 640,100
Comdisco, Inc. 1,900 60,325
Compaq Computer Corp.+ 9,900 845,212
Comverse Technology, Inc.+ 1,000 39,250
Data General Corp.+ 1,500 28,125
Encad, Inc.+ 700 25,725
HBO & Co. 13,300 711,550
Herman Miller, Inc. 2,000 64,750
Hutchinson Technology,
Inc.+ 900 24,413
Radisys Corp.+ 900 26,438
Shelby Williams
Industries, Inc. 2,000 23,000
Stratus Computer, Inc.+ 900 34,988
Aetna Mutual Funds Semi-Annual Report 37
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Aetna Fund (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Computers and Office Equipment (continued)
Sun Microsystems, Inc.+ 27,800 $ 800,987
Wallace Computer
Services, Inc. 2,000 53,500
----------
3,378,363
----------
Consumer Products (1.8%)
Equity Corp.
International+ 1,300 27,950
Gillette Co. 8,000 680,000
Helen of Troy Ltd.+ 3,500 81,375
Herbalife
International, Inc. 800 12,900
Pluma, Inc.+ 2,100 26,250
Procter & Gamble Co. 6,600 829,949
Samsonite Corp.+ 700 29,050
WestPoint Stevens, Inc.+ 900 35,213
----------
1,722,687
----------
Diversified (3.5%)
Allied Signal, Inc. 7,400 534,650
Chicago Bridge & Iron Co.
NV+ 1,500 25,500
DT Industries, Inc. 1,600 41,600
General Electric Co. 7,400 820,474
Griffon Corp.+ 1,400 16,975
Raychem Corp. 9,900 638,550
Robbins & Myers, Inc. 1,000 27,500
Ruddick Corp. 1,800 27,000
Tyco International Ltd. 18,200 1,110,199
----------
3,242,448
----------
Electrical and Electronics (1.7%)
BMC Industries, Inc. 1,700 49,300
CTS Corp. 300 18,750
Number of Market
Shares Value
------ -----
Electrical and Electronics (continued)
Cymer, Inc.+ 900 $ 37,013
DuPont Photomasks, Inc.+ 1,900 90,963
Hadco Corp.+ 600 25,650
Intel Corp. 6,900 1,056,562
Logicon, Inc. 1,000 39,750
Pioneer Standard
Electronics 2,000 24,500
Silicon Valley
Group, Inc.+ 1,200 24,675
Symbol Technologies, Inc. 1,500 48,563
Technitrol, Inc. 4,000 80,500
Ultratech Stepper, Inc.+ 1,600 28,700
Veeco Instruments, Inc.+ 1,100 34,375
Waters Corp.+ 1,900 56,288
----------
1,615,589
----------
Electrical Equipment (1.2%)
ANADIGICS, Inc.+ 1,000 28,250
Berg Electronics Corp.+ 2,000 60,000
Fluke Corp. 1,500 67,688
Honeywell, Inc. 9,600 678,000
Jabil Circuit, Inc.+ 1,200 58,050
LeCroy Corp.+ 900 23,850
Micron Electronics, Inc.+ 1,300 26,488
Rexel, Inc.+ 1,800 31,725
Sanmina Corp.+ 1,100 55,000
SCI Systems, Inc.+ 1,000 61,750
Valmont Industries 1,100 43,863
----------
1,134,664
----------
38 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Financial Services (6.2%)
ALBANK Financial Corp. 900 $ 32,850
Astoria Financial Corp. 1,900 74,338
Chase Manhattan Corp. 9,200 852,149
ContiFinancial Corp.+ 2,000 57,500
FIRSTPLUS Financial
Group, Inc.+ 900 19,913
Great Financial Corp. 1,900 61,750
Green Tree Financial Corp. 18,200 539,175
MBNA Corp. 19,900 656,700
Money Store, Inc. (The) 33,900 733,088
Peoples Heritage
Financial Group 700 21,963
Quick & Reilly Group, Inc. 1,200 26,550
RCSB Financial, Inc. 1,400 41,650
SunAmerica, Inc. 23,300 1,071,799
T. Rowe Price Associates 13,300 615,125
Travelers Group, Inc. 16,133 893,364
Union Planters Corp. 1,525 68,053
----------
5,765,967
----------
Foods and Beverages (0.6%)
Dean Foods Co. 900 33,188
Einstein/Noah Bagel Corp.+ 700 12,906
Interstate Bakeries Corp. 10,000 518,750
Quality Food
Centers, Inc.+ 900 36,113
----------
600,957
----------
Health Services (0.8%)
ADAC Laboratories+ 1,200 27,750
Number of Market
Shares Value
--------- ------
Health Services (continued)
HEALTHSOUTH Corp.+ 33,000 $ 651,750
RoTech Medical Corp.+ 1,300 20,475
Trigon Healthcare, Inc.+ 1,800 34,200
Universal Health
Services, Inc.+ 1,000 37,875
----------
772,050
----------
Home Furnishings and Appliances (0.2%)
Carlisle Co., Inc. 2,000 56,250
Ethan Allen
Interiors, Inc. 1,400 61,950
Furniture Brands
International, Inc.+ 2,600 38,350
Mohawk Industries, Inc.+ 1,600 35,800
----------
192,350
----------
Hotels and Restaurants (0.8%)
Applebees International,
Inc 1,200 28,050
CKE Restaurants, Inc. 1,300 25,513
Hilton Hotels Corp. 23,500 634,500
Quality Dining, Inc.+ 1,500 11,250
Signature Resorts, Inc.+ 800 17,700
----------
717,013
----------
Insurance (2.4%)
Allmerica Financial Corp. 800 28,800
American Bankers
Insurance Group 1,000 52,875
American International
Group, Inc. 6,500 835,249
Bay View Capital Corp. 600 29,138
Capital RE Corp. 1,200 47,550
Aetna Mutual Funds Semi-Annual Report 39
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Aetna Fund (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Insurance (continued)
CapMAC Holdings, Inc. 1,400 $ 36,400
CMAC Investment Corp. 1,600 60,800
Delphi Financial
Group, Inc.+ 1,000 35,500
HCC Insurance Holdings,
Inc 1,000 25,125
Horace Mann
Educators Corp. 1,600 75,000
Life Re Corp. 700 27,038
Markel Corp.+ 600 66,000
Mercury General Corp. 500 31,000
MGIC Investment Corp. 8,000 650,000
Orion Capital Corp. 1,100 68,888
Protective Life Corp. 1,200 53,100
Selective Insurance
Group, Inc. 1,300 52,325
Vesta Insurance
Group, Inc. 800 33,400
----------
2,208,188
----------
Machinery and Equipment (0.2%)
Cooper Cameron Corp.+ 1,000 71,250
Hughes Supply, Inc. 1,000 33,125
JLG Industries, Inc. 2,000 25,000
U.S. Rentals, Inc.+ 1,100 20,900
Watts Industries, Inc. 1,300 33,150
Zygo Corp. 400 8,900
----------
192,325
----------
Media and Entertainment (0.1%)
Carmike Cinemas, Class A+ 1,000 31,000
K2, Inc. 2,000 52,250
Number of Market
Shares Value
--------- ------
Media and Entertainment (continued)
Premier Parks, Inc.+ 900 $ 26,663
----------
109,913
----------
Medical Supplies (0.1%)
Bionx Implants, Inc.+ 1,400 15,925
Coherent, Inc.+ 1,600 66,400
Hologic, Inc.+ 1,800 37,350
Respironics, Inc.+ 1,300 24,213
----------
143,888
----------
Metals and Mining (0.4%)
Amcol International Corp. 1,700 28,900
Brush Wellman, Inc. 1,400 26,600
Gibraltar Steel Corp.+ 600 14,700
Mueller Industries, Inc.+ 1,300 48,750
Olympic Steel, Inc.+ 2,200 34,238
Oregon Metallurgical Corp. 1,500 34,500
Penn Engineering &
Manufacturing Corp. 3,100 57,350
RMI Titanium Co.+ 1,000 21,375
Roadway Express, Inc. 1,600 28,000
Shiloh Industries, Inc.+ 3,000 46,500
Steel Dynamics, Inc.+ 1,400 27,300
----------
368,213
----------
Oil and Gas (5.0%)
BJ Services Co.+ 17,400 819,974
Camco International, Inc. 1,000 44,375
Cliffs Drilling Co.+ 1,100 67,100
Cross Timbers Oil Co. 1,100 17,050
Devon Energy Corp. 800 26,400
Energy Ventures, Inc.+ 500 33,438
40 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Oil and Gas (continued)
Falcon Drilling Co., Inc.+ 700 $ 26,775
Global Industries Ltd.+ 1,600 33,600
Halliburton Co. 11,700 826,312
Helmerich & Payne, Inc. 1,300 62,075
Hugoton Energy Corp.+ 2,000 21,750
Laclede Gas Co. 1,200 26,700
Lomak Petroleum, Inc. 1,800 30,375
Louisiana Land and
Exploration Co. 13,400 670,000
Magnum Hunter Resources
Inc.+ 2,500 14,375
Marine Drilling Co., Inc.+ 1,800 28,350
MascoTech, Inc. 1,500 28,688
Neuvo Energy Co.+ 600 20,625
Patterson Energy, Inc.+ 600 17,250
Pride Petroleum Services,
Inc.+ 1,500 25,875
Santa Fe Energy
Resources, Inc.+ 4,200 59,325
Schlumberger Ltd. 7,300 808,474
Seacor Holdings+ 700 30,100
Smith International, Inc.+ 1,600 75,800
Stone Energy Corp.+ 1,100 29,425
Swift Energy Co.+ 2,200 46,475
Tesoro Petroleum Corp.+ 4,500 48,375
Tidewater, Inc. 4,800 192,600
Tuboscope Vetco
International Corp.+ 3,900 54,600
Unocal Corp. 11,100 423,188
Vintage Petroleum, Inc. 1,400 39,550
Number of Market
Shares Value
--------- ------
Oil and Gas (continued)
Western Gas
Resources, Inc. 1,700 $ 26,138
----------
4,675,137
----------
Paper and Containers (0.5%)
Avery Dennison Corp. 12,200 448,350
Sealed Air Corp.+ 1,000 46,250
----------
494,600
----------
Pharmaceuticals (3.6%)
Bristol-Myers Squibb Co. 9,400 615,700
Johnson & Johnson 13,506 827,242
Jones Medical
Industries, Inc. 400 14,100
Medeva Plc 2,000 38,500
Merck & Co., Inc. 5,600 506,800
Pfizer, Inc. 6,200 595,200
Schering Plough 10,200 815,999
----------
3,413,541
----------
Printing and Publishing (0.1%)
Bowne & Co., Inc. 900 23,850
Meredith Corp. 1,200 28,200
----------
52,050
----------
Real Estate Investment Trusts (0.4%)
American Health
Properties, Inc. 1,200 28,200
Bay Apartment
Communities, Inc. 600 20,100
Bre Properties, Inc.,
Class A 900 21,150
Capstead Mortgage Corp. 1,200 26,550
CBL & Associates Properties, Inc. 1,000 23,625
Aetna Mutual Funds Semi-Annual Report 41
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Aetna Fund (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Real Estate Investment Trusts (continued)
CWM Mortgage Holdings,
Inc 2,000 $ 39,750
Developers Diversified
Realty Corp. 700 25,813
Fairfield
Communities, Inc.+ 1,100 28,600
General Growth Properties 900 28,688
Healthcare Realty
Trust, Inc. 1,200 31,050
Patriot American
Hospitality, Inc. 2,000 43,000
Starwood Lodging Trust 1,950 75,075
----------
391,601
----------
Retail (5.2%)
Borders Group, Inc.+ 2,800 59,500
Buckle, Inc. (The)+ 1,800 26,550
Carson Pirie Scott & Co.+ 2,200 65,450
Central Garden and
Pet Co.+ 1,000 19,938
CitFed Bancorp, Inc. 100 3,300
Claire's Stores, Inc. 2,450 46,856
Costco Companies, Inc.+ 25,100 724,763
Dayton Hudson Corp. 16,600 747,000
Eagle Hardware & Garden,
Inc.+ 1,400 26,250
Family Dollar Stores, Inc. 1,900 49,638
Fingerhut Companies, Inc. 1,700 25,288
Gadzooks, Inc.+ 800 22,300
Number of Market
Shares Value
--------- ------
Retail (continued)
Hot Topic, Inc.+ 1,100 $ 28,325
Inacom Corp.+ 1,900 42,038
Insight Enterprises, Inc.+ 1,200 28,500
Lazare Kaplan
International, Inc.+ 1,500 20,438
Marks Brothers Jewelers,
Inc.+ 800 8,900
Meyer (Fred), Inc.+ 1,500 61,688
Pier 1 Imports, Inc. 1,400 27,650
Proffitt's, Inc.+ 900 33,638
Ross Stores, Inc. 2,800 78,750
Russ Berrie & Co., Inc. 1,600 30,800
Safeway, Inc.+ 17,100 763,087
Sears, Roebuck & Co. 13,000 624,000
Smith's Food & Drug
Centers, Inc.+ 500 16,750
Sovereign Bancorp, Inc. 2,640 32,340
Stein Mart, Inc.+ 1,300 37,700
Stride Rite Corp. 1,900 26,125
Tech Data Corp.+ 1,500 36,750
The Finish Line, Inc.+ 1,100 11,344
TJX Companies, Inc. 21,500 1,015,874
Tuesday Morning Corp.+ 600 16,950
U.S. Office Products Co.+ 800 20,400
Wet Seal, Inc.+ 1,400 34,650
Williams-Sonoma, Inc.+ 900 27,900
----------
4,841,430
----------
Telecommunications (0.7%)
Andrew Corp.+ 20,550 508,613
42 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Telecommunications (continued)
Associated Group, Inc.,
Class A+ 1,600 $ 59,200
Boston Technology, Inc.+ 1,200 24,000
MasTec, Inc.+ 900 26,100
Tekelec+ 900 20,700
----------
638,613
----------
Transportation (1.3%)
Airborne Freight Corp. 1,100 38,638
Avondale Industries, Inc.+ 2,000 35,500
Burlington Northern Santa
Fe Corp. 7,300 574,875
Heartland Express, Inc.+ 1,350 29,194
SkyWest, Inc. 1,400 17,850
UAL Corp.+ 7,600 565,250
----------
1,261,307
----------
Utilities - Electric (0.5%)
Central Hudson Gas &
Electric Co. 1,800 55,350
Central Maine Power Co. 2,000 22,250
Central Vermont
Public Service 4,300 44,613
Commonwealth Energy
System Co. 2,000 43,750
IES Industries, Inc. 1,200 34,800
Interstate Power Co. 1,400 40,075
KU Energy Corp. 2,000 60,750
Public Service Co. of New
Mexico 1,400 23,275
TNP Enterprises, Inc. 1,800 37,800
Washington Gas Light Co. 1,200 27,600
Number of Market
Shares Value
--------- ------
Utilities - Electric (continued)
Washington Water Power Co. 2,000 $ 35,750
----------
426,013
----------
Utilities - Oil and Gas (1.9%)
Energen Corp. 1,000 31,625
NUI Corp. 2,200 43,175
People's Energy Corp. 1,500 50,625
Sonat, Inc. 17,100 976,837
Valero Energy Corp. 17,300 607,663
Wicor, Inc. 1,500 52,688
----------
1,762,613
----------
Utilities - Telephone (0.5%)
Cincinnati Bell, Inc. 9,000 504,000
----------
Utilities - Water (0.1%)
American Water Works Co.,
Inc. 2,700 57,375
----------
Total Common Stocks
($41,040,832) 50,452,610
----------
Preferred Stocks (0.3%)
California Federal
Preferred Cap 12,000 301,500
----------
Total Preferred Stocks
(cost $300,000) 301,500
----------
Principal Market
Amount Value
--------- ------
Long-Term Bonds and Notes (32.9%)
U.S. Government Obligations (15.2%)
U.S. Treasury Bond,
6.25%, 06/30/98++++ $1,200,000 $1,203,000
U.S. Treasury Bond,
6.375%, 03/31/01 1,000,000 994,375
U.S. Treasury Bond,
6.75%, 08/15/26 2,000,000 1,933,751
Aetna Mutual Funds Semi-Annual Report 43
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Aetna Fund (continued)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------- ------
U.S. Government Obligations (continued)
U.S. Treasury Bond,
7.25%, 05/15/16 $2,000,000 $2,047,804
U.S. Treasury Note,
5.25%, 12/31/97 2,000,000 1,993,132
U.S. Treasury Note,
5.75%, 10/31/00 6,200,000 6,058,565
----------
Total U.S. Government Obligations
(cost $14,179,979) 14,230,627
----------
Corporate and Convertible Bonds (8.4%)
American General Finance,
8.45%, 10/15/09 1,000,000 1,104,134
BCH Cayman Islands Ltd.,
7.70%, 07/15/06 900,000 909,526
Centennial Cellular
Corp., 10.125%,
05/15/05 450,000 456,188
CMS Energy, 9.875%,
10/01/99 750,000 771,963
Exide Corp., 10.00%,
04/15/05 525,000 533,531
HSBC America, 7.808%,
12/15/26++ 750,000 707,948
Kaman Corp., 6.00%,
03/15/12 474,000 426,600
MFS Communications, Inc.,
5.00%, 01/15/06 350,000 265,988
News America Holdings
Inc., 9.25%, 02/01/13 500,000 543,680
Riggs Capital Trust,
8.625%, 12/31/26++ 300,000 302,696
Rogers Cantel, Inc.,
9.375%, 06/01/08 400,000 411,500
Tenet Healthcare Corp.,
7.875%, 01/15/03 300,000 297,000
Principal Market
Amount Value
--------- ------
Corporate and Convertible Bonds (continued)
Tenet Healthcare Corp.,
8.00%, 01/15/05 $ 200,000 $ 196,250
Viacom, Inc., 8.00%,
07/07/06 1,000,000 936,249
----------
Total Corporate and
Convertible Bonds
(cost $7,632,571) 7,863,253
----------
Foreign and Supranationals (7.8%)
African Development Bank,
8.80%, 09/01/19 1,000,000 1,143,099
App International
Finance, 10.25%,
10/01/00 350,000 356,125
App International
Finance, 11.75%,
10/01/05 200,000 209,500
Argent-Global Bond
(Republic of
Argentina), 11.375%,
01/30/17 400,000 424,900
Morocco Reconstruction &
Consolidation
Agreement, FRN,
6.375%, 01/01/09 500,000 440,000
Panama (Republic of),
7.875%, 02/13/02++ 200,000 195,425
Poland Discount Bond,
6.938%, 10/27/24 1,000,000 973,437
Poland Non-US Glb Reg'd,
4.00%, 10/27/14 1,000,000 811,399
Russia-Interest Notes-US,
12/29/49+,ss 700,000 488,688
Swire Pacific Ltd.,
8.50%, 09/29/04++ 1,000,000 1,053,169
44 See Notes to Portfolio of Investments.
<PAGE>
Principal Market
Amount Value
--------- ------
Foreign and Supranationals (continued)
Transport De Gas Del Sur,
7.75%, 12/23/98 $ 400,000 $ 399,000
United Mexican States
Government, 11.375%,
09/15/16 800,000 849,999
----------
Total Foreign and Supranationals
(cost $6,915,776) 7,344,741
----------
Non-Agency Mortgage-Backed Securities (1.5%)
DLJ Mortgage Acceptance
Corp., 8.10%, 06/18/04 350,000 319,539
Merrill Lynch Mortgage
Investors, Inc.,
7.795%, 06/15/21 823,504 826,056
Resolution Trust Corp.
1991-17 B6, 8.20%,
09/25/21 223,369 223,647
----------
Total Non-Agency
Mortgage-Backed Securities
(cost $1,375,532) 1,369,242
----------
Total Long-Term Bonds and Notes
(cost $30,103,858) 30,807,863
----------
Short-Term Investments (12.7%)
Enron Oil & Gas Co.,
Comm. Paper, 5.75%,
05/01/97 4,035,000 4,035,000
Houston Lighting & Power,
Comm. Paper, 5.75%,
05/05/97++ 1,500,000 1,499,042
Peco Energy Co., Comm.
Paper, 5.75%, 05/01/97 3,969,000 3,969,000
Principal Market
Amount Value
--------- ------
Short-Term Investments (continued)
Source One Mortgage
Services Corp., Comm.
Paper, 5.78%, 05/13/97 $ 2,000,000 $ 1,996,147
U.S. Treasury Bill, Time
Deposit, 5.08%,
08/21/97+++ 410,000 403,215
----------
Total Short-Term Investments
(cost $11,902,709) 11,902,404
----------
Total Investments
(cost $83,347,399) (a) 93,464,377
Other assets less
liabilities 122,501
----------
----------
Total Net Assets $93,586,878
----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $83,368,715. Unrealized gains and
losses, based on identified tax cost at April 30,
1997, are as follows:
Unrealized gains ................. $ 11,623,452
Unrealized losses ................ (1,527,790)
----------------
Net unrealized gain ......... $ 10,095,662
================
+Non-income producing security.
+++Security pledged to cover initial margin requirements on open futures
contracts at April 30, 1997.
++ Restricted security.
ss. When-issued security.
++++Security pledged to cover collateral requirements on when-issued securities.
Category percentages are based on net assets.
Information concerning open futures contracts at April 30, 1997 is shown below:
No. of Long Initial Expiration Unrealized
Contracts Value Date Gain/(Loss)
----------- -------------- ---------- -------------
S&P 500 Index Future 5 $ 1,983,625 June 97 $ 23,374
============== =============
See Notes to Financial Statements. Aetna Mutual Funds Semi-Annual Report 45
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (90.9%)
United States (85.7%)
Aerospace and Defense (0.3%)
General Dynamics Corp. 13,400 $ 954,750
Gulfstream
Aerospace Corp.+ 9,400 239,700
Thiokol Corp. 1,800 117,450
----------
1,311,900
----------
Apparel (1.3%)
Fruit of the Loom, Inc.+ 58,700 2,113,200
Nike, Inc., Class B 57,500 3,234,374
Paul Harris
Stores, Inc.+ 55,700 717,138
----------
6,064,712
----------
Autos and Auto Equipment (2.1%)
Chrysler Corp. 182,400 5,471,999
Dura Automotive
Systems, Inc.+ 4,100 110,700
Kaydon Corp. 2,800 123,900
Phycor, Inc.+ 47,000 1,251,375
Snap-On, Inc. 70,800 2,725,800
----------
9,683,774
----------
Banks (6.7%)
AmSouth Bancorporation 27,700 1,461,175
Bank United Corp. 3,500 106,750
BankAmerica Corp. 71,900 8,403,312
BanPonce Corp. 22,100 754,163
Charter One
Financial, Inc. 2,520 112,140
Compass Bancshares, Inc. 17,000 514,250
Number of Market
Shares Value
--------- ------
Banks (continued)
First Chicago Corp. 79,278 $ 4,459,387
First Union Corp. 71,900 6,039,599
Investors Financial
Services Corp. 7,200 252,000
New York Bancorp, Inc. 37,100 1,080,538
North Fork Bancorp, Inc. 27,600 1,093,650
Republic New York Corp. 32,800 3,005,300
Scripps (E.W.) Co. 22,200 843,600
Southern National Corp. 14,700 576,975
Star Banc Corp. 21,600 918,000
State Street Corp. 17,200 1,354,500
----------
30,975,339
----------
Building Materials and Construction (1.7%)
Armstrong World
Industries, Inc. 54,800 3,603,099
Centex Corp. 66,200 2,383,200
Lone Star
Industries, Inc. 28,100 1,109,950
Masco Corp. 5,900 222,725
Texas Industries, Inc. 7,700 177,100
Tredegar
Industries, Inc. 1,750 80,719
----------
7,576,793
----------
Chemicals (0.5%)
Crompton & Knowles Corp. 1 22
Cytec Industries+ 29,100 1,094,888
Lyondell
Petrochemical Co. 2,100 42,525
46 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Chemicals (continued)
Rexene Corp. 74,500 $ 1,098,875
----------
2,236,310
----------
Commercial Services (0.1%)
FactSet Research
Systems, Inc.+ 3,300 66,825
Quintiles Transnational
Corp.+ 1,200 61,050
US Filter Corp.+ 6,900 209,588
Wackenhut Corp., Class B 5,100 72,038
----------
409,501
----------
Computer Software (3.3%)
Adobe Systems, Inc. 27,200 1,064,200
BMC Software, Inc. 20,000 865,000
CCC Information
Services Group+ 800 9,400
Compuware Corp.+ 31,800 1,200,450
Edify Corp.+ 2,200 23,925
Engineering Animation,
Inc.+ 4,900 112,700
Hyperion Software Corp.+ 5,800 94,250
McAfee Associates, Inc.+ 12,100 674,575
Memco Software Ltd.+ 500 6,250
Microsoft Corp.+ 83,800 10,181,699
Neomagic Corp.+ 7,500 87,656
Sterling Commerce, Inc.+ 1,000 25,875
Yahoo! Inc.+ 29,000 989,625
----------
15,335,605
----------
Number of Market
Shares Value
--------- ------
Computers and Office Equipment (4.3%)
Adaptec, Inc.+ 2,800 $ 103,600
Ceridian Corp.+ 14,200 473,925
Compaq Computer Corp.+ 52,800 4,507,799
CompUSA, Inc.+ 7,400 142,450
Comverse
Technology, Inc.+ 8,774 344,380
Dell Computer Corp.+ 19,600 1,640,275
Encad, Inc.+ 9,900 363,825
HBO & Co. 51,200 2,739,200
Herman Miller, Inc. 36,200 1,171,975
Moore Corp. Ltd. 68,400 1,376,550
Quantum Corp.+ 20,900 871,269
Scopus Technology, Inc.+ 35,150 940,263
Stratus Computer, Inc.+ 26,500 1,030,188
Sun Microsystems,
Inc.+ 83,300 2,400,081
Western Digital Corp.+ 23,300 1,435,863
----------
19,541,643
----------
Consumer Products (2.9%)
American Greetings
Corp., Class A 74,700 2,390,400
Blyth Industries, Inc.+ 26,700 1,054,650
Colgate-Palmolive Co. 29,900 3,318,899
Dial Corp. 5,200 80,600
Equity Marketing, Inc.+ 7,200 126,000
Estee Lauder Co.,
Class A 700 32,025
Aetna Mutual Funds Semi-Annual Report 47
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Consumer Products (continued)
Gillette Co. 52,200 $ 4,436,999
Procter & Gamble Co. 16,300 2,049,725
----------
13,489,298
----------
Diversified (2.1%)
Aeroquip-Vickers Inc. 18,200 734,825
Amway Asia Pacific Ltd. 2,900 121,800
ITT Industries, Inc. 5,900 148,975
Robbins & Myers, Inc. 15,900 437,250
Rohm & Haas Co. 30,900 2,572,425
Ruddick Corp. 16,300 244,500
Textron, Inc. 26,800 2,984,850
U.S. Industries, Inc.+ 21,900 791,138
VF Corp. 21,700 1,565,113
----------
9,600,876
----------
Electrical and Electronics (4.2%)
ADT Ltd.+ 13,200 361,350
Cymer, Inc.+ 3,270 134,479
Dynatech Corp.+ 36,100 1,254,475
Integrated Packaging
Assembly Corp.+ 900 3,825
Intel Corp. 73,700 11,285,312
Seagate
Technology, Inc.+ 88,500 4,059,937
Standard Microsystems
Corp.+ 19,000 162,688
Symbol
Technologies, Inc. 23,850 772,144
Number of Market
Shares Value
--------- ------
Electrical and Electronics (continued)
Veeco Instruments, Inc.+ 2,000 $ 62,500
Waters Corp.+ 44,700 1,324,238
----------
19,420,948
----------
Electrical Equipment (1.4%)
Berg Electronics Corp.+ 9,100 273,000
Cellstar Corp.+ 12,200 292,800
Micron
Electronics, Inc.+ 49,800 1,014,675
SCI Systems, Inc.+ 9,200 568,100
Tektronix, Inc. 78,700 4,259,637
----------
6,408,212
----------
Financial Services (4.3%)
Ahmanson (H. F.) & Co. 128,300 4,891,437
AmeriCredit Corp.+ 61,100 878,313
Bankers Trust New York
Corp. 16,200 1,318,275
Bear Stearns Co., Inc. 41,370 1,261,785
ContiFinancial Corp.+ 3,600 103,500
Donaldson, Lufkin &
Jenrette, Inc. 10,100 435,563
E Trade Group Inc.+ 3,700 55,500
FIRSTPLUS Financial
Group, Inc.+ 42,800 946,950
Lehman Brothers
Holdings, Inc. 75,600 2,560,950
Matrix Capital Corp.+ 5,300 60,288
Nationwide Financial
Services, Inc.,
Class A+ 2,800 74,200
48 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Financial Services (continued)
North American Mortgage
Co. 34,900 $ 632,563
Paine Webber Group, Inc. 30,300 1,030,200
PHH Corp. 8,000 388,000
RCSB Financial, Inc. 36,100 1,073,975
SunAmerica, Inc. 4,300 197,800
Travelers Group, Inc. 70,373 3,896,904
----------
19,806,203
----------
Foods and Beverages (3.5%)
Coca-Cola Co. 80,400 5,115,449
General Mills, Inc. 570 35,340
Interstate
Bakeries Corp. 18,100 938,938
Kroger Co. (The)+ 153,000 4,207,499
Ralcorp Holdings, Inc. 3,500 35,875
Riser Foods, Inc.,
Class A 49,700 1,720,863
Sara Lee Corp. 98,900 4,153,799
----------
16,207,763
----------
Health Services (3.5%)
Beverly Enterprises+ 197,200 2,859,400
Columbia/HCA Healthcare
Corp. 104,400 3,653,999
Curative Health
Services, Inc.+ 22,600 533,925
FPA Medical Management,
Inc.+ 71,800 1,166,750
Health Management
Associates, Inc.+ 17,200 460,100
Invacare Corp. 3,800 75,525
Number of Market
Shares Value
--------- ------
Health Services (continued)
Lincare Holdings, Inc.+ 20,500 $ 804,625
MedPartners, Inc.+ 9,100 166,075
Oxford Health
Plans, Inc.+ 17,200 1,133,050
RoTech Medical Corp.+ 64,800 1,020,600
Sunrise Assisted
Living, Inc.+ 1,000 24,125
Tenet Healthcare Corp.+ 106,500 2,769,000
Trigon Healthcare, Inc.+ 10,500 199,500
Vencor, Inc.+ 15,200 632,700
Wellpoint Health
Networks, Inc.+ 15,200 642,200
----------
16,141,574
----------
Home Furnishings and Appliances (0.6%)
Ethan Allen
Interiors, Inc. 23,600 1,044,300
O' Sullivan Industries
Holdings, Inc.+ 88,000 1,188,000
Rowe Furniture Corp. 11,600 84,100
Stanley Furniture
Co., Inc.+ 9,100 182,000
Sunbeam Corp. 2,500 79,375
----------
2,577,775
----------
Hotels and Restaurants (0.9%)
Foodmaker, Inc.+ 27,300 296,888
HFS, Inc.+ 48,700 2,885,475
Interstate Hotels Co.+ 700 17,588
Promus Hotel Corp.+ 11,500 405,375
Red Roof Inns, Inc.+ 34,600 531,975
----------
4,137,301
----------
Aetna Mutual Funds Semi-Annual Report 49
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Insurance (2.4%)
AMBAC, Inc. 13,100 $ 848,225
Equitable Co., Inc. 65,000 1,901,250
Everest Re
Holdings, Inc. 14,300 411,125
Guarantee Life
Companies, Inc. 15,000 283,125
IPC Holdings Ltd 11,900 273,700
ITT Hartford Group, Inc. 57,600 4,291,199
Mutual Risk Management
Ltd. 7,866 289,076
Orion Capital Corp. 6,000 375,750
Reliance Group
Holdings, Inc. 87,800 976,775
Torchmark Corp. 18,200 1,130,675
----------
10,780,900
----------
Machinery and Equipment (1.6%)
Case Corp. 25,300 1,400,988
Caterpillar, Inc. 8,200 729,800
Danaher Corp. 13,100 591,138
Harnischfeger
Industries, Inc. 56,400 2,347,650
Parker-Hannifin Corp. 21,700 1,079,575
Terex Corp.+ 16,700 248,413
The Manitowoc Co., Inc. 25,700 1,040,850
U.S. Rentals, Inc.+ 5,000 95,000
----------
7,533,414
----------
Media and Entertainment (2.9%)
Allen Telecom Inc.+ 3,700 63,825
Number of Market
Shares Value
--------- ------
Media and Entertainment (continued)
BHC Communication, Inc. 1,700 $ 183,388
Callaway Golf Co. 17,600 525,800
Carmike Cinemas,
Class A+ 31,900 988,900
Cox Radio Inc., Class A+ 49,900 1,010,475
Heritage Media Corp.,
Class A+ 1,000 18,250
Jones Intercable, Inc.+ 900 7,763
King World
Production, Inc. 65,800 2,401,700
Regal Cinemas, Inc.+ 48,400 1,318,900
Walt Disney Co. 84,300 6,912,599
----------
13,431,600
----------
Medical Supplies (2.0%)
American Home
Products Corp. 71,800 4,756,749
Biomet, Inc.+ 18,600 282,488
Hillenbrand
Industries, Inc. 4,000 172,000
US Surgical Corp. 86,700 2,969,475
Vivus, Inc.+ 24,400 901,275
----------
9,081,987
----------
Metals and Mining (2.1%)
AK Steel Holding Corp. 3,600 130,500
Alumax, Inc.+ 2,700 98,550
Asarco, Inc. 85,600 2,439,600
Mueller
Industries, Inc.+ 4,900 183,750
Phelps Dodge Corp. 24,600 1,888,050
50 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Metals and Mining (continued)
RMI Titanium Co.+ 49,800 $ 1,064,475
Special Metals Corp.+ 3,700 52,263
Timken Co. 51,400 2,987,625
Titanium Metals Corp.+
23,000 595,125
----------
9,439,938
----------
Oil and Gas (7.8%)
Apache Corp. 23,300 792,200
Clayton Williams
Energy, Inc.+ 36,800 450,800
Columbia Gas
System, Inc. 47,300 2,926,688
Cross Timbers Oil Co. 4,819 74,695
Helmerich & Payne, Inc. 55,400 2,645,350
Kerr-Mcgee Corp. 47,400 2,861,775
Mobil Corp. 13,700 1,781,000
National Fuel Gas Co. 22,800 949,050
Occidental
Petroleum Corp. 131,200 2,902,800
Oneok, Inc. 20,600 612,850
Oryx Energy Co.+ 139,800 2,796,000
Parker & Parsley
Petroleum Co. 28,900 953,700
Phillips Petroleum Co. 94,400 3,716,999
Tesoro Petroleum Corp.+ 9,100 97,825
Number of Market
Shares Value
--------- ------
Oil and Gas (continued)
Texaco, Inc. 30,800 $ 3,249,399
Tidewater, Inc. 50,200 2,014,275
Transocean
Offshore, Inc. 3,800 230,375
Union Texas Petroleum
Holdings, Inc. 2,300 43,413
Unocal Corp. 27,100 1,033,188
USX-Marathon Group 110,100 3,041,513
Western Atlas, Inc.+ 45,400 2,814,800
----------
35,988,695
----------
Paper and Containers (0.2%)
Fort Howard Corp.+ 30,700 1,057,231
----------
Pharmaceuticals (4.5%)
Agouron
Pharmaceuticals,
Inc.+ 6,500 416,000
Bristol-Myers Squibb Co. 133,800 8,763,899
Cardinal Health Inc. 21,500 1,144,875
Dura Pharmaceuticals,
Inc.+ 29,300 849,700
Eli Lilly & Co.++ 3,500 307,563
Medicis Pharmaceutical
Corp.+ 36,700 899,150
Merck & Co., Inc. 45,200 4,090,599
Schering Plough 52,500 4,199,999
----------
20,671,785
----------
Aetna Mutual Funds Semi-Annual Report 51
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Printing and Publishing (2.2%)
Bowne & Co., Inc. 39,200 $ 1,038,800
Central Newspapers,
Inc., Class A 20,200 1,088,275
Gannett Co., Inc. 41,000 3,577,249
Lexmark International
Group, Inc.+ 35,300 820,725
McClatchy Newspapers,
Inc. 10,425 261,928
New York Times Co. 68,800 2,975,600
Washington Post Co. 800 287,400
----------
10,049,977
----------
Real Estate Investment Trusts (2.6%)
Ambassador
Apartments, Inc. 3,100 75,563
American General
Hospitality Corp. 4,200 103,425
American Health
Properties, Inc. 3,800 89,300
AMLI Residential
Properities Trust 4,300 95,138
Apartment Investment &
Management Co. 10,800 299,700
Arden Realty Group, Inc. 7,500 186,563
Bay Apartment
Communities, Inc. 1,400 46,900
Brandywine Realty Trust 3,000 56,625
CALI Realty Corp. 8,700 256,650
Camden Property Trust 1,400 38,150
Capstone Capital
Trust, Inc. 3,400 76,500
Number of Market
Shares Value
--------- ------
Real Estate Investment Trusts (continued)
Carr Realty Corp. 6,700 $ 186,763
CBL & Associates
Properties, Inc. 8,400 198,450
Colonial
Properties Trust 10,600 300,775
Cornerstone
Properties, Inc. 2,300 33,638
Crescent Real Estate
Equities, Inc. 28,600 750,750
Criimi Mae, Inc. 6,400 100,000
Crown America
Realty Trust 16,800 128,100
Developers Diversified
Realty Corp. 19,600 722,750
Duke Realty
Investments, Inc. 17,200 632,100
Eastgroup Properties 2,550 45,263
Equity Residential
Properties Trust 10,800 472,500
Essex Property
Trust, Inc. 6,200 181,350
Evans Withycombe
Residential, Inc. 3,400 67,150
Fairfield
Communities, Inc.+ 8,100 210,600
Glenborough Realty
Trust, Inc. 8,300 163,925
Healthcare Realty
Trust, Inc. 6,600 170,775
Innkeepers USA Trust 7,500 105,000
JDN Realty Corp. 9,600 268,800
Kimco Realty Corp. 19,050 592,931
Liberty Property Trust 3,400 82,025
LTC Properties, Inc. 3,800 63,650
52 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Real Estate Investment Trusts (continued)
Manufactured Home
Communities, Inc. 1,700 $ 35,700
MGI Properties, Inc. 4,600 95,450
Mills Corp. 2,200 55,275
National Health
Investors, Inc. 7,400 275,650
Oasis Residential, Inc. 18,600 413,850
OMEGA Healthcare
Investors, Inc. 3,200 98,000
Patriot American
Hospitality, Inc. 2,400 51,600
Post Properties, Inc. 2,300 89,125
Prime Retail, Inc. 11,900 144,288
Public Storage, Inc. 22,100 593,938
Ramco-Gerhenson
Properties 1,225 21,131
Regency Realty Corp. 4,400 114,400
Rouse Co. 3,400 92,225
Security Capital
Industrial Trust 16,100 324,013
Simon Debartolo Group,
Inc. 18,608 532,654
Smith (Charles E.)
Residential
Realty Co. 2,400 65,100
Spieker Properties, Inc. 15,000 523,125
Starwood Lodging Trust 15,900 612,150
Tanger Factory Outlet
Centers, Inc. 7,100 177,500
Number of Market
Shares Value
--------- ------
Real Estate Investment Trusts (continued)
United Dominion Realty
Trust, Inc. 31,930 $ 439,038
Universal Health Realty
Income Trust 2,100 39,900
Walden Residential
Properties, Inc. 11,400 250,800
Weingarten Realty
Investors 4,000 170,500
----------
12,017,221
----------
Retail (4.8%)
Ames Department Stores,
Inc.+ 117,800 824,600
Barnes & Noble Inc.+ 3,700 138,750
Carson Pirie
Scott & Co.+ 35,700 1,062,075
Costco Companies, Inc.+ 152,000 4,388,999
CVS Corp. 4,000 198,500
Footstar, Inc.+ 3,478 72,169
Hasbro, Inc. 3,300 82,500
Land's End, Inc.+ 3,800 101,650
Lowe's Companies, Inc. 700 26,600
May Department
Stores Co. 5,400 249,750
Officemax, Inc.+ 7,000 86,625
Pacific Sunwear of
California+ 34,450 1,076,563
Payless
ShoeSource, Inc.+ 3,476 147,730
Ross Stores, Inc. 125,700 3,535,312
Saks Holdings, Inc.+ 3,200 61,200
Talbots, Inc. 3,500 94,500
Aetna Mutual Funds Semi-Annual Report 53
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Retail (continued)
Tandy Corp. 8,800 $ 460,900
TJX Companies, Inc. 79,700 3,765,824
Urban Shopping Centers,
Inc. 14,500 409,625
Washington Mutual, Inc. 14,200 701,125
Wet Seal, Inc.+ 44,200 1,093,950
Williams-Sonoma, Inc.+ 34,900 1,081,900
Woolworth Corp.+ 119,200 2,562,800
----------
22,223,647
----------
Telecommunications (0.3%)
360 Communications
Co.+ 1 17
Aspect
Telecommunications
Corp. 7,202 127,836
MasTec, Inc.+ 35,200 1,020,800
Teleport Communications
Group, Inc.+ 4,700 133,950
U.S. Long Distance
Corp.+ 8,600 104,275
----------
1,386,878
----------
Transportation (2.4%)
Amerus Life Holdings,
Inc., Class A 1,800 41,400
AMR Corp.+ 10,100 940,563
CNF Transportation, Inc. 87,900 2,615,025
Comair Holdings, Inc. 8,825 186,428
Continental Airlines,
Inc., Class B+ 28,900 917,575
Number of Market
Shares Value
--------- ------
Transportation (continued)
Delta Air Lines, Inc. 34,400 $ 3,169,100
Eagle USA
Airfreight, Inc.+ 1,400 28,000
Team Rental Group+ 2,900 65,250
Trico Marine
Services, Inc.+ 40,900 1,451,950
UAL Corp.+ 16,400 1,219,750
US Xpress
Enterprises, Inc.+ 8,900 133,500
----------
10,768,541
----------
Utilities - Electric (2.7%)
Entergy Corp. 136,900 3,200,037
GPU, Inc. 85,200 2,747,700
Long Island
Lighting Corp. 35,100 802,913
Montana Power Co. 10,000 221,250
Nevada Power Co. 44,200 884,000
Ohio Edison Co. 28,200 564,000
PP&L Resources, Inc. 10,000 196,250
Public Service Co. of
New Mexico 46,000 764,750
Texas Utilities Co. 88,600 2,990,250
TNP Enterprises, Inc. 10,600 222,600
----------
12,593,750
----------
Utilities - Oil and Gas (0.6%)
Coastal Corp. (The) 44,100 2,094,750
UtiliCorp United, Inc. 23,500 611,000
----------
2,705,750
----------
Utilities - Telephone (2.9%)
Aerial Communications,
Inc.+ 16,100 78,488
Bell Atlantic Corp. 61,800 4,186,949
54 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United States (continued)
Utilities - Telephone (continued)
Century Telephone
Enterprises 6,100 $ 182,238
NYNEX Corp. 105,100 5,438,924
U. S. West
Communications Group 102,800 3,610,849
----------
13,497,448
----------
Total United States 394,154,289
----------
Foreign Common Stocks (5.2%)
Argentina (0.1%)
Banco Frances del Rio
de la Plata SA
(Banks) + 8,350 253,631
----------
Australia (0.1%)
Goodman Fielder Ltd.
(Foods and
Beverages) 180,000 236,367
Reinsurance Australia
Corp. Ltd.
(Insurance) 80,000 247,622
----------
Total Australia 483,989
----------
Austria (0.1%)
Oesterreichische
Elektrizitaetswirtschafts-AG
(Utilities -
Electric) + 1,200 83,795
Strabag Oesterreich AG
(Building Materials
and Construction)+ 420 26,535
VA Technologie AG
(Commercial
Services) + 2,500 388,327
----------
Total Austria 498,657
----------
Number of Market
Shares Value
--------- ------
Belgium (0.1%)
CMB, NPV (Building
Materials and
Construction) + 2,000 $ 143,337
G.I.B. Holdings Ltd.
(Retail) + 8,100 351,484
----------
Total Belgium 494,821
----------
Brazil (0.1%)
Companhia Energetica de
Minas Gerais
(Utilities -
Electric) + 5,000 226,250
Telecomunicacoes
Brasileiras SA
(Utilities -
Telephone) + 3,500 401,625
----------
Total Brazil 627,875
----------
Canada (0.2%)
Anderson Exploration
Ltd. (Oil and Gas) + 22,500 259,982
Canadian National
Railway Co.
(Transportation) 7,000 269,055
Petro-Canada (Oil and
Gas) 16,700 272,420
----------
Total Canada 801,457
----------
Chile (0.0%)
Embotelladora Andina
ADR, Class A
(Consumer Products) 3,000 60,000
Embotelladora Andina
ADR, Class B
(Consumer Products) 3,000 58,875
----------
Total Chile 118,875
----------
Aetna Mutual Funds Semi-Annual Report 55
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Denmark (0.1%)
ISS International
Service System AS
(Diversified) + 13,800 $ 408,271
Novo-Nordisk AS
(Pharmaceuticals) 2,800 276,975
----------
Total Denmark 685,246
----------
Finland (0.1%)
Huhtamaki Group
(Diversified) + 3,500 151,673
Kesko (Retail) 10,000 139,134
The Rauma Group (Paper
and Containers) 222 4,565
UPM-Kymmene Corp.
(Paper and
Containers) 8,000 182,949
----------
Total Finland 478,321
----------
France (0.3%)
Alcatel Alsthom
(Utilities -
Telephone) + 2,600 289,118
Credit Local de France
(Financial Services) + 2,500 231,308
Elf Aquitaine SA
(Oil and Gas) + 1,500 145,467
Schneider SA (Machinery
and Equipment) + 4,400 248,031
Scor SA
(Insurance) + 6,000 234,392
Union des Assurances
Federales
(Insurance) + 2,200 261,978
----------
Total France 1,410,294
----------
Number of Market
Shares Value
--------- ------
Germany (0.5%)
Adidas AG (Home
Furnishings and
Appliances) + 3,000 $ 310,972
Deutsche Pfandbrief &
Hypothekenbank AG
(Banks) + 5,100 276,254
GEA AG (Machinery and
Equipment) + 650 228,970
Henkel KGAA (Consumer
Products) 3,000 162,503
KSB AG (Machinery and
Equipment) + 500 98,171
Mannesmann AG
(Machinery and
Equipment) + 400 157,351
Metro AG (Retail) + 3,000 292,435
Schering AG
(Pharmaceuticals)+ 2,000 191,723
Viag AG (Diversified) + 400 178,325
Volkswagen AG (Autos
and Auto Equipment) + 750 475,554
----------
Total Germany 2,372,258
----------
Hong Kong (0.1%)
China Overseas Land &
Investment (Consumer
Products) + 200,000 112,954
HSBC Holdings Plc
(Banks) 10,678 270,171
----------
Total Hong Kong 383,125
----------
56 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Indonesia (0.0%)
PT Pasifik Satelit
Nusantara ADR
(Telecommunications) + 2,400 $ 24,000
PT Semen Gresik
(Building Materials
and Construction) + 50,000 121,914
----------
Total Indonesia 145,914
----------
Ireland (0.1%)
Adare Printing Group
Plc (Printing and
Publishing) 15,000 141,938
Golden Vale Plc (Foods
and Beverages) 119,000 116,179
Irish Life Plc
(Insurance) 30,000 136,080
Waterford Wedgewood Plc
(Home Furnishings
and Appliances) 156,301 187,810
----------
Total Ireland 582,007
----------
Italy (0.2%)
Credito Italiano
(Banks) + 235,000 329,463
Pirelli & Co. (Autos
and Auto Equipment) + 139,000 197,310
Stet Societa'
Finanziaria
Telefonica S.p.A
(Telecommunications) + 44,000 208,064
----------
Total Italy 734,837
----------
Number of Market
Shares Value
--------- ------
Japan (0.8%)
Bank of
Tokyo-Mitsubishi
(Banks) 15,000 $ 237,570
Daiichi Pharmaceutical
(Pharmaceuticals) 20,000 321,488
DDI Corp. (Utilities -
Telephone) 45 298,913
Exedy Corp. (Autos and
Auto Equipment) 9,000 106,375
Fuji Photo Film
(Chemicals) + 9,000 343,944
Fujitsu Denso
(Diversified) 3,000 90,773
Hitachi Koki
(Electrical
Equipment) 23,000 145,891
Ito-Yokado Co. Ltd.
(Retail) + 4,000 191,947
Matsushita Electric
Industrial Co. Ltd.
(Electrical and
Electronics) 18,000 287,921
Mitsubishi Heavy
Industries Ltd.
(Aerospace and
Defense) 30,000 198,093
NAMCO (Media and
Entertainment) 5,000 146,561
Nishimatsu Construction
(Building Materials
and Construction) 17,000 95,777
NTT Data Communications
Systems Co.
(Computer Software) 100 292,333
Aetna Mutual Funds Semi-Annual Report 57
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Japan (continued)
Sony Corp. (Electrical
and Electronics) 4,000 $ 291,230
Takara Standard
(Building Materials
and Construction) 30,000 226,932
West Japan Railway
(Transportation) 70 231,660
----------
Total Japan 3,507,408
----------
Malaysia (0.1%)
Leader Universal
Holdings Bhd
(Diversified) + 95,000 189,244
MBF Capital Bhd
(Financial Services) + 95,000 140,798
----------
Total Malaysia 330,042
----------
Mexico (0.2%)
ALFA, SA de C.V.
(Diversified) + 61,658 333,002
Panamerican Beverages,
Inc. (Foods and
Beverages) 16,000 464,000
Tubos de Acero de
Mexico SA (Metals
and Mining) + 5,000 81,875
----------
Total Mexico 878,877
----------
Netherlands (0.3%)
DSM NV (Chemicals) + 1,500 149,376
Fortis Amev NV
(Financial Services) + 7,696 290,362
Number of Market
Shares Value
--------- ------
Netherlands (continued)
Getronics NV (Computers
and Office
Equipment) 13,072 $ 395,896
ING Groep NV (Banks) + 5,357 210,363
Philips Electronics NV
(Electrical and
Electronics) 6,200 323,668
----------
Total Netherlands 1,369,665
----------
Norway (0.3%)
Den Norske Bank ASA
(Banks)++ 70,550 254,625
Kvaerner ASA
(Transportation) + 5,000 248,568
Merkantildata ASA
(Computer Software) + 18,000 328,615
SAS Norge ASA B
(Transportation) + 8,000 80,890
Schibsted ASA (Printing
and Publishing) +,++ 17,400 300,556
----------
Total Norway 1,213,254
----------
Philippines (0.0%)
Ayala Land, Inc. (Real
Estate Investment
Trusts) 187,500 135,097
----------
Singapore (0.2%)
Development Bank of
Singapore Ltd.
(Banks) + 24,000 285,414
NatSteel Ltd. (Metals
and Mining) + 90,000 243,929
----------
Total Singapore 710,447
----------
58 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
South Korea (0.0%)
Korea Electric Power
Corp. (Utilities -
Electric) 7,000 $ 119,000
----------
Spain (0.1%)
Cubiertas y Mzov SA
(Building Materials
and Construction) 3,750 379,685
Hidroelectrica del
Cantabrico, SA
(Utilities -
Electric) 6,700 233,921
----------
Total Spain 613,606
----------
Sweden (0.2%)
Enator AB (Commercial
Services) 16,200 326,251
Frontec AB (Computer
Software) + 22,000 168,250
Skandinaviska Enskilda
Banken (Banks) 34,000 346,696
Volvo AB (Autos and
Auto Equipment) 10,300 259,289
----------
Total Sweden 1,100,486
----------
Switzerland (0.3%)
Georg Fischer AG
(Machinery and
Equipment) 150 181,209
Novartis AG Registered
Shs (Health
Services) 330 434,942
Roche Holding AG
(Pharmaceuticals)+ 35 295,737
SMH AG (Health
Services) + 1,800 238,219
----------
Total Switzerland 1,150,107
----------
Number of Market
Shares Value
--------- ------
Taiwan (0.0%)
China Steel Corp., ADR
(Metals and Mining)++ 10,000 $ 224,750
----------
United Kingdom (0.6%)
Bank of Scotland
(Banks) + 49,196 295,354
Barclays Plc (Financial
Services) 10,000 186,274
British
Telecommunications
Plc (Utilities -
Telephone) 36,600 268,727
Cadbury Schweppes Plc
(Foods and
Beverages) 20,000 166,641
Glaxo Wellcome Plc
(Pharmaceuticals) 14,000 275,664
Granada Group Plc
(Diversified) 20,980 302,975
Iona Technologies Plc,
ADR (Consumer
Products) + 8,000 116,000
Ladbroke Group Plc
(Media and
Entertainment) 39,176 147,158
National Power Plc
(Utilities -
Electric) 7,150 250,250
Pearson Plc (Printing
and Publishing) 23,000 264,411
Shell Transport &
Trading Co.
(Oil and Gas) 15,700 277,676
----------
Total United Kingdom 2,551,130
----------
Aetna Mutual Funds Semi-Annual Report 59
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Venezuela (0.0%)
Compania Anonima
Nacional Telefonos
de Venezuela
(Utilities -
Telephone) + 5,000 $ 150,000
----------
Total Foreign Common Stocks 24,125,176
----------
Total Common Stocks
(cost $365,654,898) 418,279,465
----------
Preferred Stocks (0.2%)
United States (0.2%)
AMC Entertainment
(Media and
Entertainment) + 1,250 42,813
Case Corp. (Machinery
and Equipment) + ++ 800 106,900
Corning Delaware L.P.
(Foods and
Beverages) + 1,100 83,600
Cyprus Amax Minerals
Co. (Metals and
Mining) 2,900 154,425
Freeport McMoRan, Inc.
(Metals and Mining) + 2,000 56,000
International Paper Co.
(Paper and
Containers) + ++ 700 33,250
Sea Containers Ltd.
(Diversified) + 1,500 69,750
Tanger Factory Outlet
Centers, Inc.
(Retail) + 4,200 99,750
Union Planters Co.
(Foods and
Beverages) + 1,400 77,350
Number of Market
Shares Value
--------- ------
United States (continued)
Valero Energy Corp.
(Utilities - Oil and
Gas) + 2,800 $ 182,000
William Cos., Inc.
(Commercial
Services) + 2,100 219,450
----------
Total Preferred Stocks
(cost $891,761) 1,125,288
----------
Principal Market
Amount Value
--------- ------
Long-Term Bonds and Notes (1.6%)
Corporate and Convertible Bonds (1.6%)
Agnico-Eagle Mines
Ltd., 3.50%, 01/27/04 $ 100,000 $ 77,153
Altera Corp. 144A,
5.75%, 06/15/02++ 70,000 137,550
Alza Corp., 4.641% ++++,
07/14/14 140,000 61,425
Alza Corp., 5.00%,
05/01/06 70,000 69,825
Automatic Data
Processing, Inc.,
5.297%++++, 02/20/12 200,000 117,101
Baker Hughes, Inc.,
4.615%++++, 05/05/08 525,000 380,060
Bindley Western, 6.50%,
10/01/02 70,000 74,900
Boston Chicken, Inc.,
6.415%++++, 06/01/15 270,000 66,825
Career Horizons, Inc.,
7.00%, 11/01/02 70,000 118,300
Cityscape Financial
Corp., 6.00%,
05/01/06++ 90,000 61,200
60 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------- ------
Corporate and Convertible Bonds (continued)
Comverse Technology
Inc., 5.75%,
10/01/06++ $ 400,000 $ 427,000
Consolidated Natural
Gas Co., 7.25%,
12/15/15 50,000 52,688
Continental Airlines,
Inc., 6.75%,
04/15/06++ 140,000 170,625
Continental Homes
Holding Corp.,
6.875%, 11/01/02 50,000 46,688
Costco Wholesale, Inc.,
5.75%, 05/15/02 175,000 171,063
EMC Corp.
Massachusetts,
Subordinated Note,
3.25%, 03/15/02++ 420,000 435,225
Fpa Medical Management,
6.50%, 12/15/01 140,000 131,600
Fremont General Corp.,
6.025%++++, 10/12/13 370,000 205,350
Home Depot, Inc.,
3.25%, 10/01/01 70,000 71,400
Integrated Health
Services, 5.75%,
01/01/01 70,000 76,475
Marriott International,
Inc., 4.245%++++,
03/25/11++ 270,000 151,200
NAC Re Corp., 5.25%,
12/15/02++ 70,000 69,650
National Semiconductor
Corp., 6.50%,
10/01/02++ 350,000 341,688
Principal Market
Amount Value
--------- ------
Corporate and Convertible Bonds (continued)
Office Depot, Inc.,
2.382%++++, 12/11/07 $ 100,000 $ 61,000
Ogden Corp., 6.00%,
06/01/02 25,000 24,063
Oryx Energy Co., 7.50%,
05/15/14 50,000 47,844
Pennzoil Co., 6.50%,
01/15/03 35,000 56,219
Phymatrix Corp., 6.75%,
06/15/03 200,000 164,000
Phycor Inc., 4.50%,
02/15/03 105,000 97,256
Pioneer Financial
Services, 6.50%,
04/01/03 105,000 152,119
Pogo Producing, 5.50%,
03/15/04 70,000 115,500
Potomac Electric Power,
7.00%, 01/15/18 250,000 254,063
Prime Hospitality
Corp., 7.00%,
04/15/02 55,000 79,406
Proffitt's, Inc.,
4.75%, 11/01/03 285,000 288,919
Richey Electronics,
Inc., 7.00%,
03/01/06++ 141,000 141,176
Rite Aid Corp., 6.82%,
07/24/06 800,000 572,000
Rotech Medical Corp.,
5.25%, 06/01/03++ 245,000 210,394
SCI Systems, Inc.,
5.00%, 05/01/06++ 55,000 74,456
Salomon Inc., 6.25%,
02/01/01 5,200 291,200
Aetna Mutual Funds Semi-Annual Report 61
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth and Income (continued)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------- ------
Corporate and Convertible Bonds (continued)
Sanmina Corp., 5.50%,
08/15/02++ $ 70,000 $ 129,850
Sholodge Inc., 7.50%,
05/01/04 118,000 104,430
Theratx Inc., 8.00%,
02/01/02 150,000 145,125
Thermo Instrument
System, 4.50%,
10/15/03++ 70,000 67,900
US Cellular Corp.,
5.92%++, 06/15/15 175,000 58,406
U.S. Filter Corp.,
6.00%, 09/15/05 235,000 391,275
US Office Products Co.,
5.50%, 02/01/01 70,000 76,125
Veterinary Centers of
America, 5.25%,
05/01/06++ 35,000 23,450
Wellsford Residential
Properties, 7.00%,
11/01/98 2,100 51,188
Apache Corp., 6.00%,
01/15/02 30,000 36,113
Checkpoint Systems,
Inc., 5.25%, 11/01/05 88,000 81,400
----------
Total Long-Term Bonds and Notes
(cost $6,869,797) 7,309,868
----------
Short-Term Investments (5.5%)
Associates Corp. of
North America, Comm.
Paper, 5.68%,
05/01/97 14,602,000 14,602,000
Houston Lighting &
Power, Comm. Paper,
5.75%, 05/05/97++
4,000,000 3,997,444
Principal Market
Amount Value
--------- ------
Short-Term Investments (continued)
U.S. Treasury Bill,
Time Deposit, 5.08%,
08/21/97+++ $ 2,910,000 $ 2,861,840
Whirlpool Financial
Corp., Comm. Paper,
5.75%, 05/05/97 4,000,000 3,997,444
----------
Total Short-Term Investments
(cost $25,460,899) 25,458,728
----------
TOTAL INVESTMENTS
(cost $398,877,355)(a) 452,173,349
Other assets less
liabilities 7,958,775
----------
------------
Total Net Assets $460,132,124
------------
Notes to Portfolio of Investments
(a)The cost of investments for federal income tax purposes amount to
$399,447,142. Unrealized gains and losses, based on identified tax cost at
April 30, 1997, are as follows:
Unrealized gains ...................... $ 66,058,719
Unrealized losses ..................... (13,332,512)
----------------
Net unrealized gain ............ $ 52,726,207
================
+ Non-income producing security.
++ Security pledged to cover collateral requirements on call options written at
April 30, 1997.
+++ Security pledged to cover initial margin requirements on open futures
contracts at April 30, 1997.
++ Restricted security.
++++ Effective interest rate.
Category percentages are based on net assets.
62 See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Information concerning open futures contracts at April 30, 1997 is shown below:
No. of Initial Expiration Unrealized
Contracts Value Date Gain/(Loss)
--------- ----------- ---------- ------------
Long Contracts
FT-SE 100 Index Future 2 $ 346,749 June 97 $ 13,670
S&P 500 Index Future 4 1,602,115 June 97 3,485
Russell 2000 Index Future 3 523,759 June 97 (6,409)
----------- -----------
$ 2,472,623 $ 10,746
=========== ===========
Information concerning options written at April 30, 1997 is shown below:
No. of Exercise Expiration Market
Contracts Price Date Value
--------- -------------- ---------- -----------
Call Options
Eli Lilly & Co. 35 $85 May 97 $ (13,343)
===========
Aetna Mutual Funds Semi-Annual Report 63
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Growth
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (93.1%)
Aerospace and Defense (7.8%)
Boeing Co. 20,000 $1,972,500
General Motors, Class H 30,000 1,612,500
United Technologies Corp. 20,000 1,512,500
----------
5,097,500
----------
Agriculture (2.6%)
Delta & Pine Land Co. 66,666 1,666,650
----------
Apparel (1.6%)
Nike, Inc., Class B 19,000 1,068,750
----------
Autos and Auto Equipment (2.4%)
Ford Motor Co. 45,000 1,563,750
----------
Banks (2.6%)
Wells Fargo & Co. 6,333 1,689,328
----------
Chemicals (2.3%)
Monsanto Co. 35,000 1,496,250
----------
Commercial Services (4.3%)
United Waste
Systems, Inc.+ 3,000 101,250
US Filter Corp.+ 48,500 1,473,188
USA Waste Services, Inc.+ 37,000 1,211,750
----------
2,786,188
----------
Computer Software (6.5%)
Cadence Design
Systems, Inc.+ 28,000 896,000
Cisco Systems, Inc.+ 16,000 828,000
Microsoft Corp.+ 7,500 911,250
National Data Corp. 42,000 1,575,000
----------
4,210,250
----------
Number of Market
Shares Value
--------- ------
Computers and Office Equipment (5.4%)
Adaptec, Inc.+ 25,000 $ 925,000
HBO & Co. 28,000 1,498,000
Sun Microsystems, Inc.+ 38,000 1,094,875
----------
3,517,875
----------
Consumer Products (2.0%)
Gillette Co. 15,000 1,275,000
----------
Diversified (3.1%)
Tyco International Ltd. 33,000 2,013,000
----------
Electrical and Electronics (5.3%)
Intel Corp. 15,000 2,296,874
Xilinx, Inc.+ 23,000 1,127,000
----------
3,423,874
----------
Financial Services (14.9%)
Federal National Mortgage
Association 42,000 1,727,250
Franklin Resources, Inc. 34,500 2,039,812
Green Tree Financial Corp. 37,000 1,096,125
Money Store, Inc. (The) 50,000 1,081,250
SunAmerica, Inc. 39,600 1,821,600
Travelers Group, Inc. 35,000 1,938,125
----------
9,704,162
----------
Foods and Beverages (2.6%)
Anheuser-Busch Co., Inc. 40,000 1,715,000
----------
Hotels and Restaurants (2.9%)
Hilton Hotels Corp. 70,000 1,890,000
----------
Machinery and Equipment (2.7%)
Caterpillar, Inc. 20,000 1,780,000
----------
64 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Oil and Gas (7.2%)
Burlington Resources, Inc. 35,000 $ 1,483,125
Pennzoil Co. 25,000 1,231,250
Schlumberger Ltd. 14,000 1,550,500
Tidewater, Inc. 11,000 441,375
----------
4,706,250
----------
Pharmaceuticals (6.0%)
Bristol-Myers Squibb Co. 23,500 1,539,250
Johnson & Johnson 20,000 1,225,000
Merck & Co., Inc. 12,600 1,140,300
----------
3,904,550
----------
Retail (5.0%)
Safeway, Inc.+ 33,000 1,472,625
TJX Companies, Inc. 37,500 1,771,875
----------
3,244,500
----------
Transportation (3.8%)
Burlington Northern Santa
Fe Corp. 17,500 1,378,125
UAL Corp.+ 15,000 1,115,625
----------
2,493,750
----------
Utilities - Oil and Gas (2.1%)
Sonat, Inc. 23,500 1,342,438
----------
Total Common Stocks
(cost $52,884,474) 60,589,065
----------
Principal Market
Amount Value
--------- ------
Short-Term Investments (6.7%)
Federal Home Loan Bank,
Disc. Note, 5.28%,
05/01/97 $ 4,355,000 $ 4,355,000
Total Short-Term Investments
(cost $4,355,000) 4,355,000
----------
Total Investments
(cost $57,239,474) (a)
64,944,065
Other assets less
liabilities 129,342
----------
-----------
Total Net Assets $65,073,407
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $57,222,628. Unrealized gains and
losses, based on identified tax cost at April 30,
1997, are as follows:
Unrealized gains .................. $ 9,392,966
Unrealized losses ................. (1,671,529)
--------------
Net unrealized gain .......... $ 7,721,437
==============
+Non-income producing security.
Category percentages are based on net assets.
See Notes to Financial Statements. Aetna Mutual Funds Semi-Annual Report 65
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Index Plus
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (96.7%)
Aerospace and Defense (1.8%)
Boeing Co. 700 $ 69,037
General Dynamics Corp. 100 7,125
Lockheed Martin Corp. 400 35,800
McDonnell-Douglas Corp. 500 29,688
Northrop Grumman Corp. 100 8,350
Raytheon Co. 300 13,088
United Technologies Corp. 600 45,375
----------
208,463
----------
Agriculture (0.1%)
Pioneer Hi-Bred
International, Inc. 100 7,063
----------
Apparel (0.8%)
Alberto-Culver Co. 200 5,825
Fruit of the Loom, Inc.+ 200 7,200
Gap, Inc. 500 15,938
Liz Claiborne, Inc. 200 9,050
Nike, Inc., Class B 800 45,000
Reebok International Ltd.+ 100 3,825
Russell Corp. 100 2,775
----------
89,613
----------
Auto Parts and Accessories (0.4%)
Dana Corp. 200 6,375
Genuine Parts Co. 300 9,713
Pep Boys 100 3,263
The Goodyear Tire & Rubber
Co. 300 15,788
TRW, Inc. 200 10,425
----------
45,564
----------
Number of Market
Shares Value
--------- ------
Autos and Auto Equipment (2.7%)
Chrysler Corp. 1,400 $ 42,000
Ford Motor Co. 3,500 121,624
General Motors Corp. 2,300 133,112
PACCAR, Inc. 200 13,975
Snap-On, Inc. 200 7,700
----------
318,411
----------
Banks (7.6%)
Banc One Corp. 800 33,900
Bank of New York Co., Inc. 1,000 39,500
BankAmerica Corp. 1,100 128,562
BankBoston Corp. 500 36,375
Barnett Banks, Inc. 500 24,438
CITICORP 900 101,362
Comerica, Inc. 300 17,550
Corestates Financial Corp. 400 20,250
Fifth Third Bancorp 300 22,388
First Bank System, Inc. 300 23,025
First Chicago Corp. 800 45,000
First Union Corp. 900 75,599
Fleet Financial Group, Inc. 400 24,400
Golden West Financial Corp. 100 6,500
Great Western
Financial Corp. 400 16,800
KeyCorp 500 26,063
Mellon Bank Corp. 200 16,625
NationsBank Corp. 1,390 83,920
Norwest Corp. 1,200 59,849
Republic New York Corp. 200 18,325
66 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Banks (continued)
Suntrust Banks, Inc. 700 $ 35,525
Wachovia Corp. 300 17,550
Wells Fargo & Co. 100 26,675
----------
900,181
----------
Building Materials and Construction (0.3%)
Armstrong World Industries,
Inc. 100 6,575
Centex Corp. 100 3,600
Foster Wheeler Corp. 100 3,863
Kaufman & Broad Home Corp. 100 1,388
Masco Corp. 200 7,550
Owens Corning 100 4,050
Pulte Corp. 100 2,850
Sherwin-Williams Co. 200 6,050
----------
35,926
----------
Chemicals (2.4%)
Air Products and Chemicals,
Inc. 200 14,350
Dow Chemical Co. 200 16,975
Du Pont (E.I.) de Nemours 1,100 116,737
Engelhard Corp. 100 2,100
FMC Corp.+ 100 6,713
Goodrich (B.F.) Co. 100 3,988
Hercules, Inc. 100 3,938
Monsanto Co. 1,100 47,025
Morton International, Inc. 200 8,375
PPG Industries, Inc. 300 16,313
Praxair, Inc. 400 20,650
Sigma-Aldrich Corp. 200 6,000
Number of Market
Shares Value
--------- ------
Chemicals (continued)
Union Carbide Corp. 200 $ 9,975
W.R. Grace & Co. 200 10,400
----------
283,539
----------
Commercial Services (0.7%)
Automatic Data Processing,
Inc. 500 22,625
Browning-Ferris Industries,
Inc. 200 5,675
CUC International, Inc.+ 500 10,563
Dun & Bradstreet Corp. 200 4,925
Ecolab, Inc. 100 4,075
First Data Corp. 300 10,350
Safety-Kleen Corp. 100 1,488
Service Corp. International 400 13,700
WMX Technologies, Inc. 400 11,750
----------
85,151
----------
Computer Software (4.4%)
Cisco Systems, Inc.+ 1,300 67,274
Computer Associates
International, Inc. 600 31,200
Computer Sciences Corp.+ 100 6,250
Microsoft Corp.+ 2,900 352,349
Novell, Inc.+ 200 1,513
Oracle Corp.+ 1,300 51,675
Parametric Technology Co.+ 200 9,050
----------
519,311
----------
Computers and Office Equipment (3.3%)
3Com Corp.+ 200 5,800
Amdahl Corp.+ 200 1,713
Cabletron Systems, Inc.+ 200 6,900
Aetna Mutual Funds Semi-Annual Report 67
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Index Plus (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Computers and Office Equipment (continued)
Ceridian Corp.+ 100 $ 3,338
Compaq Computer Corp.+ 800 68,299
Data General Corp.+ 100 1,875
Dell Computer Corp.+ 500 41,844
Deluxe Corp. 100 3,063
EMC Corp.+ 400 14,550
Harris Corp. 100 8,550
Ikon Office Solutions Inc. 100 2,688
Intergraph Corp.+ 100 638
International Business
Machines, Inc. 900 144,674
Moore Corp. Ltd. 200 4,025
Pitney Bowes, Inc. 300 19,200
Sun Microsystems, Inc.+ 1,000 28,813
Tandem Computers, Inc.+ 300 3,863
Unisys Corp.+ 200 1,200
Xerox Corp. 600 36,900
----------
397,933
----------
Consumer Products (3.8%)
American Greetings Corp.,
Class A 100 3,200
Avon Products, Inc. 300 18,488
Clorox Co. 100 12,738
Colgate-Palmolive Co. 300 33,300
Eastman Kodak Co. 400 33,400
Gillette Co. 700 59,499
Mattel, Inc. 500 13,938
Newell Co. 200 7,000
Polaroid Corp. 100 4,850
Procter & Gamble Co. 2,100 264,074
Tupperware Corp. 100 3,325
----------
453,812
----------
Number of Market
Shares Value
--------- ------
Diversified (5.7%)
Aeroquip-Vickers Inc. 100 $ 4,038
Allied Signal, Inc. 600 43,350
American Brands, Inc. 200 10,750
Cognizant Corp. 300 9,788
Cooper Industries, Inc. 200 9,200
Corning, Inc. 400 19,300
Crane Co. 150 5,606
Deere & Co. 600 27,600
Dover Corp. 200 10,600
Eastern Enterprises 100 3,388
Eaton Corp. 100 7,488
General Electric Co. 3,200 354,799
ITT Industries, Inc. 200 5,050
Johnson Controls, Inc. 200 7,675
Minnesota Mining and
Manufacturing Co. 800 69,599
NACCO Industries, Inc. 100 4,625
Raychem Corp. 200 12,900
Rohm & Haas Co. 100 8,325
Textron, Inc. 200 22,275
Tyco International Ltd. 400 24,400
VF Corp. 100 7,213
Whitman Corp. 200 4,625
----------
672,594
----------
Electrical and Electronics (4.9%)
Applied Materials, Inc.+ 200 10,975
General Signal Corp. 100 3,925
Hewlett Packard Co. 2,000 104,999
Intel Corp. 2,400 367,499
Motorola, Inc. 400 22,900
National Semiconductor
Corp.+ 100 2,500
68 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Electrical and Electronics (continued)
National Service
Industries, Inc. 100 $ 4,213
Perkin-Elmer Corp. 100 7,263
Rockwell International Corp. 300 19,950
Seagate Technology, Inc.+ 700 32,113
Texas Instruments, Inc. 100 8,925
----------
585,262
----------
Electrical Equipment (0.7%)
AMP, Inc. 200 7,175
Emerson Electric Co. 800 40,600
Grainger (W. W.), Inc. 100 7,538
Honeywell, Inc. 300 21,188
Tektronix, Inc. 100 5,413
Thomas & Betts Corp. 100 4,538
----------
86,452
----------
Financial Services (6.6%)
Ahmanson (H. F.) & Co. 200 7,625
American Express Co. 1,400 92,224
Bankers Trust New York Corp. 200 16,275
Beneficial Corp. 100 6,400
Chase Manhattan Corp. 1,000 92,624
Dean Witter, Discover & Co. 1,000 38,250
Federal Home Loan Mortgage
Corp. 1,300 41,438
Federal National Mortgage
Association 2,800 115,149
Green Tree Financial Corp. 400 11,850
Household International, Inc. 300 26,400
Number of Market
Shares Value
--------- ------
Financial Services (continued)
J.P. Morgan & Co. 300 $ 30,563
MBNA Corp. 900 29,700
Merrill Lynch & Co., Inc. 400 38,100
Morgan Stanley Group, Inc. 300 18,938
National City Corp. 500 24,375
PNC Bank Corp. 600 24,675
Providian Corp. 200 11,550
Salomon, Inc. 200 10,000
St. Paul Co., Inc. 100 6,700
Transamerica Corp. 100 8,475
Travelers Group, Inc. 2,000 110,749
US Bancorp 300 17,138
----------
779,198
----------
Foods and Beverages (5.9%)
Anheuser-Busch Co., Inc. 1,000 42,875
Archer-Daniels-Midland Co. 800 14,700
Brown-Forman Corp., Class B 100 5,050
Campbell Soup Co. 800 40,900
Coca-Cola Co. 4,700 299,037
Conagra, Inc. 600 34,575
Coors (Adolph) Co. 100 2,288
CPC International, Inc. 200 16,525
General Mills, Inc. 100 6,200
Heinz (H.J.) Co. 600 24,900
Hershey Foods Corp. 200 10,850
Kroger Co. (The)+ 400 11,000
PepsiCo, Inc. 1,100 38,363
Quaker Oats Co. 200 8,000
Ralston-Ralston Purina Group 200 16,475
Aetna Mutual Funds Semi-Annual Report 69
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Index Plus (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Foods and Beverages (continued)
Sara Lee Corp. 900 $ 37,800
Seagram Ltd., 300 11,475
Supervalu, Inc. 100 3,063
Sysco Corp. 300 10,650
Unilever N.V. 300 58,875
Wrigley (Wm) Jr. Co. 200 11,650
----------
705,251
----------
Health Services (0.8%)
Beverly Enterprises+ 100 1,450
Columbia/HCA Healthcare
Corp. 2,200 76,999
HEALTHSOUTH Corp.+ 600 11,850
Manor Care, Inc. 100 2,338
Tenet Healthcare Corp.+ 300 7,800
----------
100,437
----------
Hotels and Restaurants (0.7%)
HFS, Inc.+ 200 11,850
Hilton Hotels Corp. 100 2,700
ITT Corp.+ 100 5,925
Marriott International, Inc. 200 11,050
McDonald's Corp. 1,000 53,625
Wendy's International, Inc. 200 4,125
----------
89,275
----------
Household Appliances (0.1%)
Maytag Corp. 200 4,575
Whirlpool Corp. 100 4,675
----------
9,250
----------
Insurance (4.4%)
Allstate Corp. 1,100 72,049
American General Corp. 300 13,088
Number of Market
Shares Value
--------- ------
Insurance (continued)
American International
Group, Inc. 1,400 $ 179,899
Aon Corp. 100 6,650
Chubb Corp. 300 17,325
Cigna Corp. 200 30,075
Conseco, Inc. 400 16,550
General Re Corp. 200 33,450
ITT Hartford Group, Inc. 400 29,800
Jefferson-Pilot Corp. 100 5,775
Lincoln National Corp. 200 11,200
Loews Corp. 400 36,750
Marsh & McLennan Co., Inc. 100 12,050
MBIA, Inc. 100 9,738
MGIC Investment Corp. 200 16,250
Safeco Corp. 200 8,000
Torchmark Corp. 100 6,213
UNUM Corp. 100 7,700
USF&G Corp. 200 4,000
USLIFE Corp. 100 4,850
----------
521,412
----------
Machinery and Equipment (1.1%)
Baker Hughes, Inc. 400 13,800
Black & Decker Corp. 100 3,350
Briggs & Stratton Corp. 100 4,913
Brunswick Corp. 200 5,650
Case Corp. 100 5,538
Caterpillar, Inc. 400 35,600
Cincinnati Milacr 100 2,025
Fluor Corp. 100 5,500
Giddings & Lewis 100 2,025
Harnischfeger
Industries, Inc. 100 4,163
70 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Machinery and Equipment (continued)
Illinois Tool Works, Inc. 200 $ 18,275
Ingersoll-Rand Co. 200 9,825
Pall Corp. 200 4,625
Parker-Hannifin Corp. 100 4,975
Stanley Works 200 7,775
Thermo Electron Corp.+ 200 6,900
----------
134,939
----------
Media and Entertainment (0.8%)
Fleetwood Enterprises, Inc. 100 2,638
Interpublic Group of
Co., Inc. 200 11,325
King World Production, Inc. 100 3,650
Time Warner, Inc. 500 22,500
Walt Disney Co. 700 57,400
----------
97,513
----------
Medical Supplies (1.2%)
Alza Corp.+ 200 5,850
American Home Products Corp. 1,200 79,499
Baxter International, Inc. 300 14,363
Biomet, Inc.+ 100 1,519
Boston Scientific Corp.+ 300 14,475
Guidant Corp. 100 6,825
Mallinckrodt, Inc. 100 3,638
Medtronic, Inc. 200 13,850
St. Jude Medical, Inc.+ 100 3,250
US Surgical Corp. 100 3,425
----------
146,694
----------
Metals and Mining (0.5%)
Alcan Aluminum, Ltd. 500 16,938
Allegheny Teledyne, Inc. 200 5,325
Number of Market
Shares Value
--------- ------
Metals and Mining (continued)
Aluminum Co. of America 200 $ 13,975
Armco Inc.+ 200 700
Nucor Corp. 100 4,975
Phelps Dodge Corp. 100 7,675
Timken Co. 100 5,813
USX-US Steel Group, Inc. 200 5,850
----------
61,251
----------
Oil and Gas (9.3%)
Amerada Hess Corp. 200 9,725
Amoco Corp. 1,000 83,624
Ashland, Inc. 100 4,463
Atlantic Richfield Co. 200 27,225
Burlington Resources, Inc. 400 16,950
Chevron Corp. 1,300 89,049
Columbia Gas System, Inc. 100 6,188
Consolidated Natural Gas Co. 200 10,075
Dresser Industries, Inc. 300 8,963
Enron Corp. 400 15,050
ENSERCH Corp. 100 1,963
Exxon Corp. 4,700 266,137
Halliburton Co. 200 14,125
Helmerich & Payne, Inc. 100 4,775
Kerr-Mcgee Corp. 100 6,038
Louisiana Land and
Exploration Co. 100 5,000
Mobil Corp. 700 90,999
NorAm Energy Corp. 400 5,850
Occidental Petroleum Corp. 600 13,275
Aetna Mutual Funds Semi-Annual Report 71
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Index Plus (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Oil and Gas (continued)
Oneok, Inc. 100 $ 2,975
Oryx Energy Co.+ 300 6,000
PanEnergy Corp. 300 13,275
Pennzoil Co. 100 4,925
Phillips Petroleum Co. 500 19,688
Rowan Co., Inc.+ 200 3,600
Royal Dutch Petroleum Co.+ 1,000 180,249
Santa Fe Energy Resources,
Inc.+ 200 2,825
Schlumberger Ltd. 500 55,375
Texaco, Inc. 500 52,750
The Williams Co., Inc. 300 13,163
Union Pacific Resources
Group, Inc. 400 10,850
Unocal Corp. 700 26,688
USX-Marathon Group 900 24,863
Western Atlas, Inc.+ 100 6,200
----------
1,102,900
----------
Paper and Containers (0.8%)
Avery Dennison Corp. 400 14,700
Bemis Co., Inc. 100 3,813
Crown Cork & Seal Co., Inc. 200 10,950
James River Corp. of
Virginia 100 2,988
Kimberly-Clark Corp. 1,200 61,499
----------
93,950
----------
Pharmaceuticals (8.9%)
Abbott Laboratories 2,300 140,299
Allergan, Inc. 100 2,675
Amgen, Inc.+ 400 23,550
Becton, Dickinson & Co. 200 9,200
Number of Market
Shares Value
--------- ------
Pharmaceuticals (continued)
Bristol-Myers Squibb Co. 3,000 $ 196,499
Eli Lilly & Co.++ 1,000 87,874
Johnson & Johnson 2,500 153,124
Merck & Co., Inc. 2,200 199,099
Pfizer, Inc. 1,200 115,199
Pharmacia & Upjohn, Inc. 500 14,813
Schering Plough 800 63,999
Warner Lambert Co. 500 49,000
----------
1,055,331
----------
Printing and Publishing (0.7%)
Gannett Co., Inc. 300 26,175
John H. Harland Co. 100 2,063
Knight-Ridder, Inc. 200 7,775
McGraw-Hill Co., Inc. 200 10,175
Meredith Corp. 200 4,700
New York Times Co. 200 8,650
Times Mirror Co. 200 11,050
Tribune Co. 200 8,775
----------
79,363
----------
Retail (3.5%)
Albertson's, Inc. 300 9,900
American Stores Co. 300 13,650
Charming Shoppes, Inc.+ 200 1,181
Costco Companies, Inc.+ 500 14,438
CVS Corp. 200 9,925
Dayton Hudson Corp. 600 27,000
Federated Department
Stores, Inc.+ 400 13,600
Great Atlantic & Pacific
Tea Co., Inc. 100 2,488
Harcourt General, Inc. 100 4,625
Hasbro, Inc. 300 7,500
72 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Retail (continued)
Home Depot, Inc. 800 $ 46,400
J.C. Penney Co., Inc. 300 14,325
Kmart Corp.+ 800 10,900
Longs Drug Stores, Inc. 100 2,525
Lowe's Companies, Inc. 400 15,200
May Department Stores Co. 200 9,250
Rite Aid Corp. 100 4,600
Sears, Roebuck & Co. 700 33,600
The Limited, Inc. 300 5,438
TJX Companies, Inc. 300 14,175
Toys "R" Us, Inc.+ 200 5,700
Wal-Mart Stores, Inc. 4,300 121,474
Walgreen Co. 400 18,400
Woolworth Corp.+ 400 8,600
----------
414,894
----------
Telecommunications (1.8%)
Ameritech Corp. 1,400 85,574
Andrew Corp.+ 300 7,425
Lucent Technologies, Inc. 1,200 70,949
Northern Telecom Ltd 600 43,575
Scientific Atlanta, Inc. 100 1,600
----------
209,123
----------
Tobacco (2.5%)
Philip Morris Co., Inc. 7,400 291,374
UST, Inc. 300 7,838
----------
299,212
----------
Transportation (1.2%)
AMR Corp.+ 200 18,625
Burlington Northern Santa
Fe Corp. 200 15,750
Conrail, Inc. 87 9,940
Number of Market
Shares Value
--------- ------
Transportation (continued)
CSX Corp. 400 $ 18,650
Delta Air Lines, Inc. 200 18,425
Federal Express Corp.+ 100 5,388
Laidlaw, Inc., Class B 500 6,813
Norfolk Southern Corp. 200 17,975
Union Pacific Corp. 300 19,125
USAir Group, Inc.+ 200 6,475
----------
137,166
----------
Utilities - Electric (1.7%)
American Electric Power Co. 300 12,150
Baltimore Gas & Electric Co. 200 5,100
Carolina Power & Light Co. 200 6,800
Central & South West Corp. 200 4,025
CINergy Corp. 200 6,650
Consolidated Edison Co. of
New York, Inc. 200 5,550
Dominion Resources, Inc. 200 6,875
DTE Energy Co. 200 5,350
Duke Power Co. 300 13,163
Edison International 800 16,800
Entergy Corp. 400 9,350
FPL Group, Inc. 300 13,388
GPU, Inc. 200 6,450
Houston Industries, Inc. 300 6,000
Niagara Mohawk Power Corp.+ 200 1,700
Northern States Power Co. 100 4,550
Ohio Edison Co. 200 4,000
PacifiCorp 500 9,938
Aetna Mutual Funds Semi-Annual Report 73
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Index Plus (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Utilities - Electric (continued)
Peco Energy Co. 300 $ 5,925
PG&E Corp. 300 7,200
PP&L Resources, Inc. 200 3,925
Public Service Enterprise
Group, Inc. 200 4,825
Southern Co. 1,000 20,375
Texas Utilities Co. 400 13,500
Unicom Corp. 200 4,350
Union Electric Co. 100 3,563
----------
201,502
----------
Utilities - Oil and Gas (0.3%)
Coastal Corp. (The) 200 9,500
NICOR, Inc. 100 3,388
Pacific Enterprises 100 3,063
People's Energy Corp. 100 3,375
Sonat, Inc. 200 11,425
----------
30,751
----------
Utilities - Telephone (4.3%)
Alltel Corp. 300 9,450
AT&T Corp. 1,100 36,850
Bell Atlantic Corp. 800 54,200
BellSouth Corp. 1,900 84,549
GTE Corp. 1,900 87,162
MCI Communications Corp. 1,000 38,125
NYNEX Corp. 900 46,575
SBC Communications, Inc. 1,512 83,916
Sprint Corp. 500 21,938
Tellabs, Inc.+ 500 19,938
U. S. West Communications
Group 900 31,613
----------
514,316
----------
Total Common Stocks
(cost $10,773,116) 11,473,003
----------
Principal Market
Amount Value
--------- ------
Short-Term Investments (2.8%)
Federal Home Loan Bank,
Disc. Note, 5.28%,
05/01/97 $ 235,000 $ 235,000
U.S. Treasury Bill, Time
Deposit, 5.22%, 08/21/97 100,000 98,345
----------
Total Short-Term Investments
(cost $333,376) 333,345
----------
Total Investments
(cost $11,106,492) (a) 11,806,348
Other assets less
liabilities 58,022
----------
-----------
Total Net Assets $11,864,370
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $11,122,265. Unrealized gains and
losses, based on identified tax cost at April 30,
1997, are as follows:
Unrealized gains ..................... $ 918,752
Unrealized losses .................... (234,669)
------------
Net unrealized gain ............. $ 684,083
============
+Non-income producing security.
Category percentages are based on net assets.
74 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Small Company
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (95.0%)
Aerospace and Defense (1.7%)
BE Aerospace, Inc.+ 15,400 $ 379,225
----------
Apparel (0.8%)
Hartmarx Corp.+ 24,000 192,000
----------
Banks (4.7%)
Cullen/Frost Bankers, Inc. 20,500 717,500
Provident Bankshares Corp. 10,395 366,424
----------
1,083,924
----------
Building Materials and Construction (3.7%)
Fibreboard Corp.+ 16,400 602,700
Interface, Inc. 10,400 232,700
----------
835,400
----------
Chemicals (8.7%)
Church & Dwight, Inc. 30,500 777,749
Crompton & Knowles Corp. 32,800 713,400
Fuller (H.B.) Co. 4,300 230,588
Lilly Industries, Inc.,
Class A 15,000 260,625
----------
1,982,362
----------
Commercial Services (1.1%)
Sabre Group
Holdings, Inc.+ 10,000 256,250
----------
Computer Software (6.7%)
National Data Corp. 12,400 465,000
Sterling Software, Inc.+ 27,000 823,499
Wall Data, Inc.+ 12,000 251,250
----------
1,539,749
----------
Number of Market
Shares Value
--------- ------
Computers and Office Equipment (1.5%)
Radiant Systems, Inc.+ 12,800 $ 152,000
Shelby Williams
Industries, Inc. 16,000 184,000
----------
336,000
----------
Consumer Products (0.9%)
Pluma, Inc.+ 16,000 200,000
----------
Diversified (3.8%)
Griffon Corp.+ 30,000 363,750
Triarc Co., Inc.+ 27,000 502,875
----------
866,625
----------
Electrical and Electronics (8.7%)
BMC Industries, Inc. 10,400 301,600
Cymer, Inc.+ 8,000 329,000
Fusion Systems Corp.+ 10,000 263,750
Pioneer Standard
Electronics 20,000 245,000
Scotsman Industries, Inc. 10,000 255,000
Silicon Valley
Group, Inc.+ 28,600 588,088
----------
1,982,438
----------
Financial Services (2.2%)
RCSB Financial, Inc. 16,500 490,875
----------
Foods and Beverages (0.9%)
Interstate Bakeries Corp. 4,100 212,688
----------
Health Services (1.7%)
Trigon Healthcare, Inc.+ 21,000 399,000
----------
See Notes to Portfolio of Investments. Aetna Mutual Funds Semi-Annual Report 75
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Small Company (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Hotels and Restaurants (1.1%)
Prime Hospitality Corp.+ 15,000 $ 249,375
----------
Insurance (7.6%)
CapMAC Holdings, Inc. 16,300 423,800
Delphi Financial
Group, Inc.+ 20,600 731,300
LaSalle Re Holdings Ltd. 21,300 591,075
----------
1,746,175
----------
Machinery and Equipment (1.0%)
Terex Corp.+ 16,000 238,000
----------
Media and Entertainment (2.9%)
Telemundo Group, Inc.,
Class A+ 16,500 433,125
Topps Co., Inc.+ 57,800 223,975
----------
657,100
----------
Medical Supplies (5.0%)
Bionx Implants, Inc.+ 12,000 136,500
Fisher Scientific
International 14,400 610,200
PerSeptive Biosystems+ 16,400 82,000
PLC Systems, Inc.+ 20,400 316,200
----------
1,144,900
----------
Metals and Mining (4.9%)
Reynolds Metals Co. 16,400 1,113,149
----------
Oil and Gas (7.1%)
Basic Petroleum
International Ltd.+ 9,400 294,925
Camco International, Inc. 11,300 501,438
Energy Ventures, Inc.+ 4,000 267,500
Number of Market
Shares Value
--------- ------
Oil and Gas (continued)
Giant Industries, Inc. 20,000 $ 240,000
Neuvo Energy Co.+ 9,000 309,375
----------
1,613,238
----------
Pharmaceuticals (3.5%)
Alcide Corp.+ 28,700 584,763
Biovail Corp.
International+ 8,400 210,000
----------
794,763
----------
Retail (8.8%)
Burlington Coat Factory
Warehouse+ 20,000 380,000
Carson Pirie Scott & Co.+ 20,000 595,000
Dress Barn, Inc.+ 20,700 287,213
Family Dollar Stores, Inc. 16,400 428,450
Insight Enterprises, Inc.+ 8,000 190,000
Smith's Food & Drug
Centers, Inc.+ 4,000 134,000
----------
2,014,663
----------
Telecommunications (3.2%)
Associated Group, Inc.,
Class A+ 20,000 740,000
----------
Transportation (1.2%)
Canadian National Railway 7,100 273,350
----------
Utilities - Electric (1.6%)
El Paso Electric Co.+ 57,300 361,706
----------
Total Common Stocks
(cost $19,673,112) 21,702,955
----------
76 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Market
Amount Value
--------- ------
Short-Term Investments (6.3%)
Federal Home Loan Bank,
Disc. Note, 5.28%,
05/01/97 $1,440,000 $ 1,440,000
Total Short-Term Investments
(cost $1,440,000) 1,440,000
----------
Total Investments
(cost $21,113,112) (a) 23,142,955
Other assets less
liabilities (302,918)
----------
-----------
Total Net Assets $22,840,037
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $21,152,760. Unrealized gains and
losses, based on identified tax cost at April
30,1997, are as follows:
Unrealized gains .................. $ 2,817,572
Unrealized losses ................. (827,377)
-------------
Net unrealized gain .......... $ 1,990,195
==============
+Non-income producing security.
Category percentages are based on net assets.
See Notes to Financial Statements. Aetna Mutual Funds Semi-Annual Report 77
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
International Growth
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Common Stocks (89.2%)
Argentina (0.2%)
Banco Frances del Rio de
la Plata SA (Banks) + 5,225 $ 158,709
----------
Australia (1.8%)
Goodman Fielder Ltd.
(Foods and Beverages) 366,708 481,551
National Australia Bank
Ltd. (Banks) 16,000 219,487
Reinsurance Australia
Corp. Ltd. (Insurance) 183,000 566,446
Woolworth Ltd. (Foods and
Beverages) 11,000 32,501
----------
Total Australia 1,299,985
----------
Austria (1.0%)
VA Technologie AG
(Commercial Services) + 4,700 730,057
----------
Belgium (2.3%)
CMB, NPV (Building
Materials and
Construction) + 7,500 537,514
G.I.B. Holdings Ltd.
(Retail) + 13,600 590,146
Societe Generale De
Belgique (Financial
Services) + 5,900 525,252
----------
Total Belgium 1,652,912
----------
Brazil (1.8%)
Companhia Energetica de
Minas Gerais
(Utilities - Electric) + 10,000 450,000
Number of Market
Shares Value
--------- ------
Brazil (continued)
Telecomunicacoes
Brasileiras SA
(Utilities -
Telephone) + 7,200 $ 826,200
----------
Total Brazil 1,276,200
----------
Canada (2.5%)
Anderson Exploration Ltd.
(Oil and Gas) + 53,000 612,421
Canadian National Railway
Co. (Transportation) 13,000 500,057
Petro-Canada
(Oil and Gas) 42,500 693,307
----------
Total Canada 1,805,785
----------
Chile (0.8%)
Embotelladora Andina ADR,
Class A (Consumer
Products) 14,000 280,000
Embotelladora Andina ADR,
Class B (Consumer
Products) 14,000 274,750
----------
Total Chile 554,750
----------
Denmark (1.9%)
ISS International Service
System AS
(Diversified) + 18,970 561,226
Novo-Nordisk AS
(Pharmaceuticals) 8,100 801,250
Tele Danmark AS
(Utilities -
Telephone) 463 22,268
----------
Total Denmark 1,384,744
----------
Finland (3.8%)
Enso Oy R Shs (Paper and
Containers) 40,000 330,540
78 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Finland (continued)
Huhtamaki Group
(Diversified) + 13,400 $ 584,557
Kesko (Retail) 15,000 208,125
Oy Nokia AB
(Telecommunications) 8,100 503,565
Rautaruukki Oy (Metals
and Mining) 62,000 544,508
The Rauma Group (Paper
and Containers) 751 15,443
UPM-Kymmene Corp. (Paper
and Containers) 22,000 500,999
----------
Total Finland 2,687,737
----------
France (5.0%)
Alcatel Alsthom
(Utilities -
Telephone) + 7,381 820,765
Credit Local de France
(Financial Services) + 4,700 434,861
Elf Aquitaine SA
(Oil and Gas) + 5,100 494,590
Schneider SA (Machinery
and Equipment) + 10,550 594,712
Scor SA (Insurance) + 15,000 585,983
Union des Assurances
Federales
(Insurance) + 3,100 369,152
Usinor Sacilor (Metals
and Mining) + 18,600 281,087
----------
Total France 3,581,150
----------
Germany (8.5%)
Adidas AG (Home
Furnishings and
Appliances) + 7,700 802,616
Number of Market
Shares Value
--------- ------
Germany (continued)
Commerzbank AG (Banks) + 8,850 $ 237,394
Deutsche Pfandbrief &
Hypothekenbank AG
(Banks) + 10,300 560,310
Fried Krupp AG (Machinery
and Equipment) + 1,900 349,464
GEA AG (Machinery and
Equipment) + 950 334,652
Henkel KGAA (Consumer
Products) 7,200 390,841
KSB AG (Machinery and
Equipment) + 1,100 216,614
Mannesmann AG (Machinery
and Equipment) + 1,515 595,799
Merck KGAA
(Pharmaceuticals) + 14,700 583,195
Metro AG (Retail) + 5,000 485,086
Schering AG
(Pharmaceuticals) + 4,700 450,553
Viag AG (Diversified) + 800 355,730
Volkswagen AG (Autos and
Auto Equipment) + 1,070 680,316
----------
Total Germany 6,042,570
----------
Hong Kong (2.3%)
China Overseas Land &
Investment (Consumer
Products) + 980,000 553,476
HSBC Holdings Plc (Banks) 17,460 440,642
Noble Group Ltd. (Metals
and Mining) 500,000 455,000
Aetna Mutual Funds Semi-Annual Report 79
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
International Growth (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Hong Kong (continued)
Pacific Ports Co. Ltd.
(Commercial Services) 500,000 $ 183,954
----------
Total Hong Kong 1,633,072
----------
Indonesia (0.4%)
PT Semen Gresik (Building
Materials and
Construction) + 121,000 295,031
----------
Ireland (1.7%)
Adare Printing Group Plc
(Printing and
Publishing) 42,065 423,317
Irish Life Plc
(Insurance) 76,036 370,028
Waterford Wedgewood (Home
Furnishings and
Appliances) 346,168 452,352
----------
Total Ireland 1,245,697
----------
Italy (2.2%)
Credito Italiano
(Banks) + 374,000 524,337
Pirelli & Co. (Autos and
Auto Equipment) + 235,000 333,582
Stet Societa' Finanziaria
Telefonica S.p.A.
(Telecommunications) + 146,000 690,395
----------
Total Italy 1,548,314
----------
Japan (15.2%)
Bank of Tokyo-Mitsubishi
(Banks) 20,000 316,760
Capcom Company (Computers
and Office Equipment) 27,000 474,431
Daiichi Pharmaceutical
(Pharmaceuticals) 43,000 691,198
Number of Market
Shares Value
--------- ------
Japan (continued)
DDI Corp. (Utilities -
Telephone) 110 $ 730,675
Exedy Corp. (Autos and
Auto Equipment) 25,500 301,395
Fuji Photo Film
(Chemicals) + 24,000 917,184
Fujitec Co. Ltd.
(Building Materials
and Construction) 68,000 691,198
Fujitsu Denso
(Diversified) 15,400 465,968
Hitachi Koki (Electrical
Equipment) 35,000 222,008
Honda Motor Co. Ltd.
(Autos and Auto
Equipment) + 8,000 248,365
Ito-Yokado Co. Ltd.
(Retail) + 9,000 431,881
Matsushita Electric
Industrial Co. Ltd.
(Electrical and
Electronics) 28,000 447,876
Mitsubishi Heavy
Industries Ltd.
(Aerospace and
Defense) 62,000 409,392
NAMCO (Media and
Entertainment) 20,000 586,242
Nishimatsu Construction
(Building Materials
and Construction) 29,000 163,384
NTT Data Communications
Systems Co. (Computer
Software) 31 906,232
Sony Corp. (Electrical
and Electronics) 8,000 582,460
80 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Japan (continued)
Takara Standard (Building
Materials and
Construction) 54,000 $ 408,478
Takefuji Corp. (Banks) 7,670 369,267
Tokyo Ohka Kogyo
(Electrical and
Electronics) 30,000 820,266
West Japan Railway
(Transportation) 200 661,886
----------
Total Japan 10,846,546
----------
Malaysia (1.2%)
Leader Universal Holdings
Bhd (Diversified) + 211,500 421,315
MBF Capital Bhd
(Financial Services) + 306,000 453,514
----------
Total Malaysia 874,829
----------
Mexico (2.1%)
ALFA, SA de C.V.
(Diversified) + 74,802 410,106
Panamerican Beverages,
Inc. (Foods and
Beverages) 29,200 846,800
Tubos de Acero de Mexico
SA (Metals and Mining) + 16,000 262,000
----------
Total Mexico 1,518,906
----------
Netherlands (4.9%)
DSM NV (Chemicals) + 7,600 756,859
Fortis Amev NV (Financial
Services) + 11,482 433,216
Getronics NV (Computers
and Office Equipment) 13,594 411,717
Number of Market
Shares Value
--------- ------
Netherlands (continued)
ING Groep NV
(Banks) + 21,615 $ 848,822
Philips Electronics NV
(Electrical and
Electronics) 16,300 850,958
Unilever NV, Plc (Foods
and Beverages) 1,125 218,815
----------
Total Netherlands 3,520,387
----------
Norway (2.6%)
Den Norske Bank ASA
(Banks)++ 60,000 217,391
Kvaerner ASA
(Transportation) + 14,300 710,903
Merkantildata ASA
(Computer
Software) + 11,900 217,251
SAS Norge ASA B
(Transportation) + 31,400 317,492
Schibsted ASA (Printing
and Publishing) +,++ 22,800 393,832
----------
Total Norway 1,856,869
----------
Philippines (0.5%)
Philippine Long Distance
Telephone Spn ADR
(Telecommunications) 5,100 284,325
Sanitary Wares
Manufacturing Corp.
(Building Materials
and Construction)++++ 761,400 43,311
----------
Total Philippines 327,636
----------
Aetna Mutual Funds Semi-Annual Report 81
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
International Growth (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
Singapore (1.9%)
Clipsal Industries Ltd.
(Electrical Equipment) + 120,000 $ 470,400
Development Bank of
Singapore Ltd. (Banks) + 52,000 618,406
NatSteel Ltd. (Metals and
Mining) + 104,000 281,878
----------
Total Singapore 1,370,684
----------
South Korea (0.3%)
Korea Electric Power
Corp. (Utilities -
Electric) 13,000 221,000
----------
Spain (2.5%)
Cubiertas y Mzov SA
(Building Materials
and Construction) 5,500 553,483
Empresa Nacional de
Electricidad SA
(Utilities - Electric) 8,700 608,687
Hidroelectrica del
Cantabrico, SA
(Utilities - Electric) 17,000 593,531
----------
Total Spain 1,755,701
----------
Sweden (4.1%)
Enator AB (Commercial
Services) 30,100 606,186
Frontec AB (Computer
Software) + 50,100 383,152
Skandinaviska Enskilda
Banken (Banks) 99,000 1,009,501
SKF AB B Shs (Metals and
Mining) 21,000 455,041
Volvo AB (Autos and Auto
Equipment) 18,700 470,751
----------
Total Sweden 2,924,631
----------
Number of Market
Shares Value
--------- ------
Switzerland (3.8%)
Georg Fischer AG
(Machinery and
Equipment) 450 $ 543,641
Novartis AG Registered
Shs (Health Services) 750 988,529
Roche Holding AG
(Pharmaceuticals) + 88 743,586
SMH AG (Health Services) + 3,400 449,980
----------
Total Switzerland 2,725,736
----------
Taiwan (0.3%)
China Steel Corp. (Metals
and Mining) 7,250 162,944
China Steel Corp., ADR
(Metals and
Mining)++ 2,050 46,074
----------
Total Taiwan 209,018
----------
Thailand (0.6%)
Siam Cement PCL
(Foreign-Registered
shares) (Building
Materials and
Construction) 15,000 401,914
----------
United Kingdom (12.2%)
BAA Plc (Transportation) 43,000 356,534
Bank of Scotland (Banks) + 131,368 786,552
Barclays Plc (Financial
Services) 21,600 402,002
British
Telecommunications Plc
(Utilities -
Telephone) 87,000 638,071
Cadbury Schweppes Plc
(Foods and Beverages) 89,362 742,394
82 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
--------- ------
United Kingdom (continued)
Glaxo Wellcome Plc
(Pharmaceuticals) 29,000 $ 570,782
Granada Group Plc
(Diversified) 43,076 622,766
Hammerson Plc (Retail) 64,500 470,960
Iona Technologies Plc,
ADR (Consumer
Products) + 28,000 406,000
Ladbroke Group Plc (Media
and Entertainment) 82,689 308,594
Legal & General Group Plc
(Financial Services) 95,500 641,527
National Power Plc
(Utilities - Electric) 14,500 507,500
Pearson Plc (Printing and
Publishing) 38,000 439,011
Safeway Plc (Retail) 95,000 527,183
Shell Transport & Trading
Co. (Oil and Gas) 46,300 819,629
Tarmac Plc (Building
Materials and
Construction) 258,300 515,515
----------
Total United Kingdom 8,755,020
----------
Venezuela (0.8%)
Compania Anonima Nacional
Telefonos de Venezuela
(Utilities -
Telephone) + 19,000 570,000
----------
Total Common Stocks
(cost $59,433,241) 63,775,590
----------
Principal Market
Amount Value
--------- ------
Long-Term Bonds and Notes (0.6%)
U.S. Government Obligations (0.6%)
U. S. Treasury Bill,
5.09%++, 08/21/97 $ 400,000 $ 393,680
----------
Total Long-Term Bonds and Notes
(cost $393,680) 393,680
----------
Short-Term Investments (7.4%)
Dana Credit Corp., Comm.
Paper, 5.75%++++++,
05/01/97 2,661,000 2,661,000
Textron Inc., Comm.
Paper, 5.73%++++++,
05/01/97 2,661,000 2,661,000
----------
Total Short-Term Investments
(cost $5,322,000) 5,322,000
----------
Total Investments
(cost $65,148,921) (a) 69,491,270
Other assets less
liabilities 1,995,259
----------
-----------
Total Net Assets $71,486,529
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amounted to $65,370,032. Unrealized gains
and losses, based on identified tax cost at April
30, 1997, are as follows:
Unrealized gains ...................... $6,229,205
Unrealized losses ..................... (2,107,967)
----------
Net unrealized gain .............. $4,121,238
==========
+Non-income producing security.
++ Restricted security.
++++ Restricted security. This security has been determined to be illiquid under
guidelines established by the Board of Directors.
++++++Effective interest rate.
Category percentages are based on net assets.
Information concerning open futures contracts at April 30, 1997 are shown below:
No. of Long Initial Expiration Unrealized
Contracts Value Date Gain/(Loss)
----------- ------------- ---------- -------------
Topix Index Future 5 $ 539,666 June 97 $ 35,931
============= =============
Aetna Mutual Funds Semi-Annual Report 83
<PAGE>
Statements of Assets and Liabilities
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
----------------------- ------------ ----------
Aetna Series Fund, Inc. Money Market Government
----------------------- ------------ ----------
<S> <C> <C>
Assets:
Investments, at market value ..................... $ 472,895,756 $ 10,192,925
Cash ............................................. 12,946 4,395
Cash denominated in foreign currencies ........... -- --
Receivable for:
Dividends and interest ........................ 1,348,032 168,252
Investments sold .............................. -- --
Fund shares sold .............................. 2,219,080 --
Recoverable taxes ............................. -- --
Variation margin .............................. -- --
Reimbursement from Investment Adviser ......... 170,381 13,041
Prepaid expenses ................................. 4,441 243
Deferred organizational expenses ................. 2,891 --
Gross unrealized gain or forward foreign currency
exchange contracts ............................ -- --
----------------- ----------------
Total assets ................................ 476,653,527 10,378,856
----------------- ----------------
Liabilities:
Payable for:
Dividends to shareholders ..................... 257,942 27,493
Investments purchased ......................... -- --
Fund shares redeemed .......................... 1,438,313 26
Other liabilities ................................ 514,247 17,886
Gross unrealized loss on forward foreign currency
exchange contracts ............................ -- --
Deferred premiums on written options, at
market value .................................. -- --
----------------- ----------------
Total liabilities ........................... 2,210,502 45,405
----------------- ----------------
NET ASSETS ....................................... $ 474,443,025 $ 10,333,451
================= ================
Net assets represented by:
Paid-in capital .................................. $ 474,443,025 $ 10,954,860
Net unrealized gain (loss) on investments ........ -- (135,007)
Undistributed (distributions in excess) of net
investment income ............................. -- (12,576)
Accumulated net realized gain (loss)
on investments ................................ -- (473,826)
----------------- ----------------
NET ASSETS ....................................... $ 474,443,025 $ 10,333,451
================= ================
Capital Shares, $.001 par value
Select Class:
Outstanding ................................... 330,588,789 1,022,003
Net Assets .................................... $ 330,588,789 $ 9,815,883
Net Asset Value per share* .................... $ 1.00 $ 9.60
Adviser Class:
Outstanding ................................... 143,854,236 53,907
Net Assets .................................... $ 143,854,236 $ 517,568
Net Asset Value per share* .................... $ 1.00 $ 9.60
Cost of Investments .............................. $ 472,895,756 $ 10,327,932
Cost of cash denominated in foreign currencies ... -- --
</TABLE>
* Net assets divided by shares outstanding.
84 See Notes to Financial Statements.
<PAGE>
---- ---------- -----------------
Bond Aetna Fund Growth and Income
---- ---------- -----------------
$ 31,382,391 $ 93,464,377 $452,173,349
30,016 186,255 19,609
-- -- 2,514,755
409,153 457,191 849,580
-- 109,115 14,775,309
244,676 31,358 580,140
-- -- 13,559
-- 7,500 6,249
14,831 -- --
515 1,094 4,828
2,891 2,891 2,919
-- -- 193,768
- ------------ ------------ ------------
32,084,473 94,259,781 471,134,065
- ------------ ------------ ------------
26,234 -- --
-- 489,750 10,462,900
73,078 54,810 2,414
27,786 128,343 484,093
-- -- 39,191
-- -- 13,343
- ------------ ------------ ------------
127,098 672,903 11,001,941
- ------------ ------------ ------------
$ 31,957,375 $ 93,586,878 $460,132,124
============ ============ ============
$ 32,562,051 $ 79,475,784 $344,762,017
328,907 10,140,352 53,447,354
(2,982) 712,258 1,317,913
(930,601) 3,258,484 60,604,840
- ------------ ------------ ------------
$ 31,957,375 $ 93,586,878 $460,132,124
============ ============ ============
3,127,904 7,191,110 30,224,416
$ 31,178,253 $ 88,853,741 $449,829,978
$ 9.97 $ 12.36 $ 14.88
78,207 384,357 695,043
$ 779,122 $ 4,733,137 $ 10,302,146
$ 9.96 $ 12.31 $ 14.82
$ 31,053,484 $ 83,347,399 $398,877,355
-- -- $ 2,531,307
Aetna Mutual Funds Semi-Annual Report 85
<PAGE>
Statements of Assets and Liabilities
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
----------------------- ------ ----------
Aetna Series Fund, Inc. Growth Index Plus
----------------------- ------ ----------
<S> <C> <C>
Assets:
Investments, at market value ..................... $ 64,944,065 $ 11,806,348
Cash ............................................. 272 2,063
Cash denominated in foreign currencies ........... -- --
Receivable for:
Dividends and interest ........................ 54,196 14,762
Investments sold .............................. 217,068 219,943
Fund shares sold .............................. 15,890 12,000
Recoverable taxes ............................. -- --
Variation margin .............................. -- --
Reimbursement from Investment Advisor ......... -- 19,414
Prepaid expenses ................................. 686 5,650
Deferred organizational expenses ................. -- 7,409
Gross unrealized gain on forward foreign currency
exchange contracts ............................ -- --
---------------- ----------------
Total assets ................................ 65,232,177 12,087,589
---------------- ----------------
Liabilities:
Payable for:
Dividends to shareholders ..................... -- --
Investments purchased ......................... 75,567 196,623
Fund shares redeemed .......................... 2,213 26,596
Other liabilities ................................ 80,990 --
---------------- ----------------
Total liabilities ........................... 158,770 223,219
---------------- ----------------
NET ASSETS ....................................... $ 65,073,407 $ 11,864,370
================ ================
Net assets represented by:
Paid-in capital .................................. $ 53,369,082 $ 11,055,466
Net unrealized gain on investments ............... 7,704,591 699,856
Undistributed (distributions in excess of) net
investment income ............................. (12,007) 37,279
Accumulated net realized gain on investments ..... 4,011,741 71,769
---------------- ----------------
NET ASSETS ....................................... $ 65,073,407 $ 11,864,370
================ ================
Capital Shares, $.001 par value
Select Class:
Outstanding ................................... 4,163,611 1,084,415
Net Assets .................................... $ 59,006,479 $ 11,702,895
Net Asset Value per share* .................... $ 14.17 $ 10.79
Adviser Class:
Outstanding ................................... 433,302 14,989
Net Assets .................................... $ 6,066,928 $ 161,475
Net Asset Value per share* $ 14.00 $ 10.77
Cost of Investments .............................. $ 57,239,474 $ 11,106,492
Cost of cash denominated in foreign currencies ... -- --
</TABLE>
* Net assets divided by shares outstanding.
86 See Notes to Financial Statements.
<PAGE>
------------- --------------------
Small Company International Growth
------------- --------------------
$ 23,142,955 $ 69,491,270
1,481 --
-- 2,470,290
3,954 184,777
209,993 4,528,758
1,285 2,566
-- 75,514
-- 16,129
-- 5,613
215 958
-- 2,919
-- 295,848
--------------- ---------------
23,359,883 77,074,642
--------------- ---------------
-- 291
429,973 5,154,814
47,069 29,984
42,804 403,024
--------------- ---------------
519,846 5,588,113
--------------- ---------------
$ 22,840,037 $ 71,486,529
=============== ===============
$ 18,126,697 $ 57,689,846
2,029,843 4,652,167
(88,126) 291,911
2,771,623 8,852,605
--------------- ---------------
$ 22,840,037 $ 71,486,529
=============== ===============
1,597,732 4,028,970
$ 18,565,914 $ 50,439,120
$ 11.62 $ 12.52
374,835 1,683,845
$ 4,274,123 $ 21,047,409
$ 11.40 $ 12.50
$ 21,113,112 $ 65,148,921
-- $ 2,480,096
Aetna Mutual Funds Semi-Annual Report 87
<PAGE>
Statements of Operations
Six month period ended April 30, 1997 (Unaudited)
<TABLE>
----------------------- ------------ ----------
Aetna Series Fund, Inc. Money Market Government
----------------------- ------------ ----------
<S> <C> <C>
Investment Income:
Dividends ......................................... $ -- $ --
Interest .......................................... 12,778,704 350,044
---------------- -------------
12,778,704 350,044
Foreign taxes withheld ............................ -- --
---------------- -------------
Total investment income ........................ 12,778,704 350,044
---------------- -------------
Investment Expenses:
Investment advisory fee ........................... 909,873 26,604
Administrative service fees ....................... 558,321 13,302
12b-1 and service fees ............................ 65,724 2,044
Organizational expenses ........................... 4,250 --
Printing and postage .............................. 21,574 6,898
Custody fees ...................................... 4,109 2,109
Transfer agent fees ............................... 273,529 13,600
Audit fees ........................................ 18,358 9,278
Directors' fees ................................... 6,699 170
State and federal fees ............................ 39,951 19,466
Miscellaneous ..................................... 11,294 608
---------------- -------------
Expenses before reimbursement and waiver from
Adviser ........................................ 1,913,682 94,079
Expenses reimbursement and waiver from Adviser .... (1,156,374) (54,775)
---------------- -------------
Total expenses ................................. 757,308 39,304
---------------- -------------
Net investment income ............................. 12,021,396 310,740
---------------- -------------
Realized and Unrealized Gain (Loss):
Realized gain (loss) on:
Sale of investments ............................ -- (97,216)
Written options ................................ -- --
Futures and forward foreign currency
exchange contracts .......................... -- --
Foreign currency related transactions .......... -- --
---------------- -------------
Net realized gain (loss) on investments ...... -- (97,216)
---------------- -------------
Net change in unrealized gain or loss on:
Investments .................................... -- (60,332)
Written options ................................ -- --
Futures and forward foreign currency
exchange contracts .......................... -- --
Foreign currency related transactions .......... -- --
---------------- -------------
Net change in unrealized gain or
loss on investments ....................... -- (60,332)
---------------- -------------
Net realized and change in unrealized gain or loss
on investments ................................. -- (157,548)
---------------- -------------
Increase in net assets resulting from operations $ 12,021,396 $ 153,192
================ =============
</TABLE>
88 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
---- ---------- -----------------
Bond Aetna Fund Growth and Income
---- ---------- -----------------
<S> <C> <C>
$ 3,092 $ 303,581 $ 3,944,691
1,035,723 1,426,745 617,964
-------------- --------------- ----------------
1,038,815 1,730,326 4,562,655
-- -- (32,146)
-------------- --------------- ----------------
1,038,815 1,730,326 4,530,509
-------------- --------------- ----------------
76,479 371,687 1,450,840
38,240 116,152 525,205
2,803 16,331 31,526
4,250 4,250 4,250
7,462 9,719 18,008
3,168 14,682 52,065
21,697 33,755 60,832
10,165 11,774 18,617
467 1,407 6,339
7,232 21,017 47,558
1,398 2,869 12,723
-------------- --------------- ----------------
173,361 603,643 2,227,963
(55,894) -- --
-------------- --------------- ----------------
117,467 603,643 2,227,963
-------------- --------------- ----------------
921,348 1,126,683 2,302,546
-------------- --------------- ----------------
(1,134) 3,291,878 59,773,401
-- -- (3,821,318)
-- 54,131 5,630,275
-- -- (66,814)
-------------- --------------- ----------------
(1,134) 3,346,009 61,515,544
-------------- --------------- ----------------
(290,339) (1,022,689) (14,649,823)
-- -- 156,498
-- 23,375 (257,633)
-- -- (18,408)
-------------- --------------- ----------------
(290,339) (999,314) (14,769,366)
-------------- --------------- ----------------
(291,473) 2,346,695 46,746,178
-------------- --------------- ----------------
$ 629,875 $ 3,473,378 $ 49,048,724
============== =============== ================
</TABLE>
Aetna Mutual Funds Semi-Annual Report 89
<PAGE>
Statements of Operations
Six month period ended April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
----------------------- ------ ----------
Aetna Series Fund, Inc. Growth Index Plus
----------------------- ------ ----------
<S> <C> <C>
Investment Income:
Dividends ......................................... $ 365,426 $ 71,920
Interest .......................................... 85,192 9,778
-------------- ------------
450,618 81,698
Foreign taxes withheld ............................ -- (37)
-------------- ------------
Total investment income ........................ 450,618 81,661
-------------- ------------
Investment Expenses:
Investment advisory fee ........................... 207,909 18,850
Administrative service fees ....................... 74,253 10,472
12b-1 and service fees ............................ 20,410 116
Organizational expenses ........................... -- 591
Printing and postage .............................. 8,310 477
Custody fees ...................................... 2,140 4,023
Transfer agent fees ............................... 31,083 12,401
Audit fees ........................................ 10,481 3,898
Directors' fees ................................... 785 103
State and federal fees ............................ 23,042 32,174
Miscellaneous ..................................... 1,607 401
-------------- ------------
Expenses before reimbursement and waiver from
Adviser ........................................ 380,020 83,506
Expenses reimbursement and waiver from Adviser .... -- (54,274)
-------------- ------------
Total expenses ................................. 380,020 29,232
-------------- ------------
Net investment income (loss)....................... 70,598 52,429
-------------- ------------
Realized and Unrealized Gain (Loss):
Realized gain (loss) on:
Sale of investments ............................ 4,019,749 81,653
Written options ................................ -- --
Futures and forward foreign currency exchange
contracts ................................... -- (9,884)
Foreign currency related transactions .......... -- --
-------------- ------------
Net realized gain on investments ............. 4,019,749 71,769
-------------- ------------
Net change in unrealized gain or loss on:
Investments .................................... (499,652) 699,856
Written options ................................ -- --
Futures and forward foreign currency exchange
contracts ................................... -- --
Foreign currency related transactions .......... -- --
-------------- ------------
Net change in unrealized gain or loss on
investments ............................... (499,652) 699,856
-------------- ------------
Net realized and change in unrealized gain or loss
on investments ................................. 3,520,097 771,625
-------------- ------------
Increase in net assets resulting from operations $ 3,590,695 $ 824,054
============== ============
</TABLE>
90 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
------------- --------------------
Small Company International Growth
------------- --------------------
<S> <C>
$ 100,832 $ 612,767
47,067 68,594
-------------- ------------
147,899 681,361
(229) (76,147)
-------------- ------------
147,670 605,214
-------------- ------------
116,020 304,236
34,124 89,482
15,898 87,999
-- 4,250
7,665 8,903
5,561 206,871
25,388 24,692
10,269 14,988
432 1,082
19,457 19,781
982 3,152
-------------- ------------
235,796 765,436
-- --
-------------- ------------
235,796 765,436
-------------- ------------
(88,126) (160,222)
-------------- ------------
2,819,243 9,201,680
-- --
(6,926) 1,159,933
-- (364,785)
-------------- ------------
2,812,317 9,996,828
-------------- ------------
(1,538,231) 266,836
-- --
-- 193,930
-- (11,104)
-------------- ------------
(1,538,231) 449,662
-------------- ------------
1,274,086 10,446,490
-------------- ------------
$ 1,185,960 $ 10,286,268
============== ============
</TABLE>
Aetna Mutual Funds Semi-Annual Report 91
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
----------------------- ------------
Aetna Series Fund, Inc. Money Market
----------------------- ------------
Six month
period ended
April 30, 1997 Year ended
(Unaudited) October 31, 1996
------------------- -------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 12,021,396 $ 20,682,673
------------------- -------------------
Net increase in net assets resulting from operations ............. 12,021,396 20,682,673
------------------- -------------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (8,545,959) (15,289,546)
Adviser Class:
From net investment income .................................... (3,475,437) (5,393,127)
------------------- -------------------
Decrease in net assets from distributions to shareholders ........ (12,021,396) (20,682,673)
------------------- -------------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 165,312,107 365,382,830
Reinvestment of distributions ................................. 6,860,057 11,942,795
Cost of shares redeemed ....................................... (164,864,254) (329,569,238)
Adviser Class:
Proceeds from shares sold ..................................... 250,529,254 313,079,417
Reinvestment of distributions ................................. 3,363,624 5,181,096
Cost of shares redeemed ....................................... (229,887,921) (277,136,873)
------------------- -------------------
Net increase in net assets from fund share transactions 31,312,867 88,880,027
------------------- -------------------
Change in net assets ............................................. 31,312,867 88,880,027
------------------- -------------------
Net assets:
Beginning of period .............................................. 443,130,158 354,250,131
------------------- -------------------
End of period .................................................... $ 474,443,025 $ 443,130,158
=================== ===================
</TABLE>
92 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
----------------------- ----------
Aetna Series Fund, Inc. Government
----------------------- ----------
Six month
period ended
April 30, 1997 Year ended
(Unaudited) October 31, 1996
----------------- --------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 310,740 $ 761,120
Net realized gain or loss on investments ......................... (97,216) 440,214
Net change in unrealized loss on investments...................... (60,332) (671,559)
---------------- -----------------
Net increase in net assets resulting from operations ............. 153,192 529,775
---------------- -----------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (343,607) (826,219)
Adviser Class:
From net investment income .................................... (17,049) (30,691)
---------------- -----------------
Decrease in net assets from distributions to shareholders ........ (360,656) (856,910)
---------------- -----------------
und Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 601,821 7,128,630
Reinvestment of distributions ................................. 162,687 731,042
Cost of shares redeemed ....................................... (1,414,734) (16,037,046)
Adviser Class:
Proceeds from shares sold ..................................... 153,264 392,895
Reinvestment of distributions ................................. 16,190 29,570
Cost of shares redeemed ....................................... (166,550) (288,026)
---------------- -----------------
Net decrease in net assets from fund share transactions (647,322) (8,042,935)
---------------- -----------------
Change in net assets ............................................. (854,786) (8,370,070)
---------------- -----------------
Net assets:
Beginning of period .............................................. 11,188,237 19,558,307
---------------- -----------------
End of period .................................................... $ 10,333,451 $ 11,188,237
================ =================
End of period net assets includes undistributed (distributions in
excess of) net investment income .............................. $ (12,576) $ 37,340
================ =================
</TABLE>
Aetna Mutual Funds Semi-Annual Report 93
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
----------------------- ----
Aetna Series Fund, Inc. Bond
----------------------- ----
Six month
period ended
April 30, 1997 Year ended
(Unaudited) October 31, 1996
----------------- -------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 921,348 $ 2,131,443
Net realized gain or loss on investments ......................... (1,134) 350,612
Net change in unrealized loss on investments ..................... (290,339) (865,587)
---------------- -----------------
Net increase in net assets resulting from operations ............. 629,875 1,616,468
---------------- -----------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (996,525) (2,228,451)
Adviser Class:
From net investment income .................................... (21,675) (118,704)
---------------- -----------------
Decrease in net assets from distributions to shareholders ........ (1,018,200) (2,347,155)
---------------- -----------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 6,295,401 16,737,268
Reinvestment of distributions ................................. 835,215 1,969,778
Cost of shares redeemed ....................................... (4,435,518) (21,913,346)
Adviser Class:
Proceeds from shares sold ..................................... 120,433 723,229
Reinvestment of distributions ................................. 20,523 117,153
Cost of shares redeemed ....................................... (231,396) (7,281,015)
---------------- -----------------
Net increase (decrease) in net assets from share transactions 2,604,658 (9,646,933)
---------------- -----------------
Change in net assets ............................................. 2,216,333 (10,377,620)
---------------- -----------------
Net assets:
Beginning of period .............................................. 29,741,042 40,118,662
---------------- -----------------
End of period .................................................... $ 31,957,375 $ 29,741,042
================ =================
End of period net assets includes undistributed (distributions in
excess of) net investment income .............................. $ (2,982) $ 93,870
================ =================
</TABLE>
94 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
----------------------- ----------
Aetna Series Fund, Inc. Aetna Fund
----------------------- ----------
Six month
period ended
April 30, 1997 Year ended
(Unaudited) October 31, 1996
----------------- ------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 1,126,683 $ 2,058,321
Net realized gain on investments ................................. 3,346,009 10,249,465
Net change in unrealized gain or loss on investments ............. (999,314) 1,651,236
----------------- -----------------
Net increase in net assets resulting from operations ............. 3,473,378 13,959,022
----------------- -----------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (1,171,944) (2,235,502)
From realized gain on investments ............................. (9,749,920) (3,635,331)
Adviser Class:
From net investment income .................................... (41,667) (43,474)
From realized gain on investments ............................. (460,490) (74,327)
----------------- -----------------
Decrease in net assets from distributions to shareholders ........ (11,424,021) (5,988,634)
----------------- -----------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 5,450,803 8,853,321
Reinvestment of distributions ................................. 10,819,249 5,822,307
Cost of shares redeemed ....................................... (8,465,107) (17,683,736)
Adviser Class:
Proceeds from shares sold ..................................... 1,232,507 2,316,316
Reinvestment of distributions ................................. 448,943 113,883
Cost of shares redeemed ....................................... (356,961) (287,278)
----------------- -----------------
Net increase (decrease) in net assets from fund share
transactions 9,129,434 (865,187)
----------------- -----------------
Change in net assets ............................................. 1,178,791 7,105,201
----------------- -----------------
Net assets:
Beginning of period .............................................. 92,408,087 85,302,886
----------------- -----------------
End of period .................................................... $ 93,586,878 $ 92,408,087
================= =================
End of period net assets includes undistributed net investment
income ........................................................ $ 712,258 $ 799,186
================= =================
</TABLE>
Aetna Mutual Funds Semi-Annual Report 95
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
----------------------- -----------------
Aetna Series Fund, Inc. Growth and Income
----------------------- -----------------
Six month
period ended
April 30, 1997 Year ended
(Unaudited) October 31, 1996
------------------ ------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 2,302,546 $ 5,153,191
Net realized gain on investments ................................. 61,515,544 63,958,135
Net change in unrealized gain or loss on investments ............. (14,769,366) 17,384,692
------------------ ------------------
Net increase in net assets resulting from operations ............. 49,048,724 86,496,018
------------------ ------------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (3,329,083) (6,192,363)
From realized gain on investments.............................. (62,913,623) (19,770,374)
Adviser Class:
From net investment income .................................... (40,847) (31,982)
From realized gain on investments.............................. (1,192,597) (154,880)
------------------ ------------------
Decrease in net assets from distributions to shareholders ........ (67,476,150) (26,149,599)
------------------ ------------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 36,511,640 32,613,330
Reinvestment of distributions ................................. 66,142,763 25,939,008
Cost of shares redeemed ....................................... (12,559,231) (97,162,916)
Adviser Class:
Proceeds from shares sold ..................................... 3,482,599 4,361,463
Reinvestment of distributions ................................. 1,183,621 183,989
Cost of shares redeemed ....................................... (623,332) (879,552)
------------------ ------------------
Net increase (decrease) in net assets from fund share
transactions 94,138,060 (34,944,678)
------------------ ------------------
Change in net assets ............................................. 75,710,634 25,401,741
------------------ ------------------
Net assets:
Beginning of period .............................................. 384,421,490 359,019,749
------------------ ------------------
End of period .................................................... $ 460,132,124 $ 384,421,490
================== ==================
End of period net assets includes undistributed net investment
income ........................................................ $ 1,317,913 $ 2,385,297
================== ==================
</TABLE>
96 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
----------------------- ------
Aetna Series Fund, Inc. Growth
----------------------- ------
Six month
period ended
April 31, 1997 Year ended
(Unaudited) October 31, 1996
----------------- ------------------
<S> <C> <C>
From Operations:
Net investment income ............................................ $ 70,598 $ 59,963
Net realized gain on investments ................................. 4,019,749 4,445,504
Net change in unrealized gain or loss on investments ............. (499,652) 3,234,043
---------------- -----------------
Net increase in net assets resulting from operations ............. 3,590,695 7,739,510
---------------- -----------------
Distributions to Shareholders:
Select Class:
From net investment income .................................... (105,592) (132,569)
From realized gain on investments ............................. (4,009,137) (4,659,506)
Adviser Class:
From realized gain on investments ............................. (397,394) (262,211)
---------------- -----------------
Decrease in net assets from distributions to shareholders ........ (4,512,123) (5,054,286)
---------------- -----------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................................... 13,543,546 25,918,850
Reinvestment of distributions ................................. 4,107,903 4,792,222
Cost of shares redeemed ....................................... (3,281,205) (24,571,029)
Adviser Class:
Proceeds from shares sold ..................................... 1,590,946 3,140,744
Reinvestment of distributions ................................. 394,605 260,073
Cost of shares redeemed ....................................... (449,544) (801,093)
---------------- -----------------
Net increase in net assets from fund share transactions 15,906,251 8,739,767
---------------- -----------------
Change in net assets ............................................. 14,984,823 11,424,991
---------------- -----------------
Net assets:
Beginning of period .............................................. 50,088,584 38,663,593
---------------- -----------------
End of period .................................................... $ 65,073,407 $ 50,088,584
================ =================
End of period net assets includes undistributed (distributions in
excess of) net investment income .............................. $ (12,007) $ 22,987
================ =================
</TABLE>
Aetna Mutual Funds Semi-Annual Report 97
<PAGE>
Statements of Changes in Net Assets
----------------------- ----------
Aetna Series Fund, Inc. Index Plus
----------------------- ----------
Period from
December 10, 1996
to
April 30, 1997
(Unaudited)
--------------------
From Operations:
Net investment income ........................... $ 52,429
Net realized gain on investments ................ 71,769
Net change in unrealized gain on investments .... 699,856
------------
Net increase in net assets resulting from
operations .................................... 824,054
------------
Distributions to Shareholders:
Select Class:
From net investment income .................... (15,150)
------------
Net decrease in net assets from distributions to
shareholders .................................. (15,150)
------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................... 12,354,458
Cost of shares redeemed ....................... (1,456,054)
Adviser Class:
Proceeds from shares sold ..................... 157,062
------------
Net increase in net assets from fund share
transactions 11,055,466
------------
Change in net assets ............................ 11,864,370
------------
Net assets:
Beginning of period ............................. --
------------
End of period ................................... $11,864,370
============
End of period net assets includes undistributed
net investment income ......................... $ 37,279
============
98 See Notes to Financial Statements.
<PAGE>
----------------------- -------------
Aetna Series Fund, Inc. Small Company
----------------------- -------------
Six month
period ended
April 30, Year ended
1997 October 31,
(Unaudited) 1996
-------------- --------------
From Operations:
Net investment loss ........................... $ (88,126) $ (225,633)
Net realized gain on investments .............. 2,812,317 8,498,979
Net change in unrealized loss on investments .. (1,538,231) (1,470,234)
------------- -------------
Net increase in net assets resulting from
operations .................................. 1,185,960 6,803,112
------------- -------------
Distributions to Shareholders:
Select Class:
From realized gain on investments ........... (7,329,361) (3,463,485)
Adviser Class:
From realized gain on investments ........... (972,925) (159,638)
------------- -------------
Decrease in net assets from distributions to
shareholders ................................ (8,302,286) (3,623,123)
------------- -------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ................... 11,324,210 6,999,806
Reinvestment of distributions ............... 1,837,628 3,459,007
Cost of shares redeemed ..................... (20,482,762) (14,903,155)
Adviser Class:
Proceeds from shares sold ................... 856,083 2,859,494
Reinvestment of distributions ............... 911,095 155,727
Cost of shares redeemed ..................... (499,083) (537,089)
------------- -------------
Net decrease in net assets from fund share
transactions (6,052,829) (1,966,210)
------------- -------------
Change in net assets .......................... (13,169,155) 1,213,779
------------- -------------
Net assets:
Beginning of period ........................... 36,009,192 34,795,413
------------- -------------
End of period ................................. $ 22,840,037 $ 36,009,192
============= =============
End of period net assets includes net
investment loss ............................. $ (88,126) --
============= =============
Aetna Mutual Funds Semi-Annual Report 99
<PAGE>
Statements of Changes in Net Assets
----------------------- --------------------
Aetna Series Fund, Inc. International Growth
----------------------- --------------------
Six month
period ended
April 30, Year ended
1997 October 31,
(Unaudited) 1996
------------ -------------
From Operations:
Net investment income ......................... $ (160,222) $ 1,351
Net realized gain on investments .............. 9,996,828 6,200,936
Net change in unrealized gain on investments .. 449,662 2,790,612
------------ -------------
Net increase in net assets resulting from
operations .................................. 10,286,268 8,992,899
------------ -------------
Distributions to Shareholders:
Select Class:
From net investment income .................. (638,500) (350,856)
From realized gain on investments ........... (3,470,621) (537,862)
Adviser Class:
From net investment income .................. (234,230) (152,316)
From realized gain on investments ........... (1,729,395) (505,447)
------------ -------------
Decrease in net assets from distributions to
shareholders ................................ (6,072,746) (1,546,481)
------------ -------------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ................... 3,980,536 5,302,352
Proceeds from shares acquired in merger ..... -- 21,386,350
Reinvestment of distributions ............... 2,046,351 884,514
Cost of shares redeemed ..................... (4,207,880) (11,844,145)
Adviser Class:
Proceeds from shares sold ................... 947,289 820,339
Proceeds from shares acquired in merger ..... -- 493,887
Reinvestment of distributions ............... 183,050 657,332
Cost of shares redeemed ..................... (4,355,586) (8,033,640)
------------ -------------
Net increase (decrease) in net assets from
fund share transactions ..................... (1,406,340) 9,666,989
------------ -------------
Change in net assets .......................... 2,807,282 17,113,407
------------ -------------
Net assets:
Beginning of period ........................... 68,679,247 51,565,840
------------ -------------
End of period ................................. $71,486,529 $ 68,679,247
============ =============
End of period net assets includes
undistributed net investment income ......... $ 291,911 $ 1,324,863
============ =============
100 See Notes to Financial Statements.
<PAGE>
Notes to Financial Statements
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies
- --------------------------------------------------------------------------------
Aetna Series Fund, Inc. (Company) is registered under the Investment Company Act
of 1940 as an open-end management investment company. It was incorporated under
the laws of Maryland on June 17, 1991. The Articles of Incorporation permit the
Company to offer separate funds (Funds) each of which has its own investment
objective, policies and restrictions.
Shares of each Fund are available to all investors including employers and
employees who utilize the Funds as investment options under retirement plans.
Each Fund is diversified and offers two classes of shares, the Select Class and
the Adviser Class. The Select Class shares are offered principally to
institutions and are not subject to sales charges or service fees. The Adviser
Class shares are offered to all others and are subject to deferred sales charges
payable upon redemption within four calendar years after the year of purchase.
Additionally, the Adviser Class shares are subject to a shareholder service fee
and Rule 12b-1 distribution fees. The Adviser Class shares were first made
available to the public April 15, 1994 for all Funds except Aetna Index Plus
Fund, which were made available to the public February 3, 1997.
The Company offers the following Funds described in this report:
Aetna Money Market Fund (Money Market) seeks to provide high current
return, consistent with the preservation of capital and liquidity, through
investment in high-quality money market instruments.
Aetna Government Fund (Government) seeks to provide income consistent with
the preservation of capital through investment in securities issued or
guaranteed by the U.S. Government, its agencies or instrumentalities.
Aetna Bond Fund (Bond) seeks to provide high total return (i.e., income and
capital appreciation) through investment in a diversified portfolio.
The Aetna Fund (Aetna Fund) seeks to maximize total return with reasonable
safety of principal by investing in a diversified portfolio of stocks,
bonds and money market instruments.
Aetna Growth and Income Fund (Growth and Income) seeks long-term growth of
capital and income through investment in a diversified portfolio primarily
of common stocks and convertible securities.
Aetna Growth Fund (Growth) seeks growth of capital through investment in a
diversified portfolio primarily of common stocks and convertible
securities.
Aetna Index Plus Fund (Index Plus) seeks to outperform the total return
performance of publicly traded common stocks represented by the S&P 500
Composite Stock Price Index (S&P 500), a stock market index comprised of
500 common stocks selected by the Standard and Poor's Corporation.
Aetna Small Company Fund (Small Company) seeks growth of capital through
investment in a diversified portfolio primarily of common stocks and
convertible securities.
Aetna Mutual Funds Semi-Annual Report 101
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
Aetna International Growth Fund (International Growth) seeks long-term
capital growth primarily through investment in a diversified international
portfolio of common stocks principally traded in countries outside of North
America.
Aetna Life Insurance and Annuity Company (Aetna) serves as the Investment
Adviser and principal underwriter to each Fund. Aeltus Investment Management,
Inc. (Aeltus) is employed as a subadviser to the Funds.
The accompanying financial statements of the Funds have been prepared in
accordance with generally accepted accounting principles. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect amounts
reported therein. Although actual results could differ from these estimates, any
such differences are expected to be immaterial to the net assets of the Funds.
A. Valuation of Investments
Except in Money Market, investments are stated at market values based upon
closing sales prices as reported on national securities exchanges or, for
over-the-counter securities, at the mean of the bid and asked prices. Short-term
investments maturing in more than sixty days are valued at current market value.
Short-term investments maturing in less than sixty days are valued at amortized
cost which when combined with accrued interest approximates market. Securities
for which market quotations are not considered to be readily available are
valued in good faith using methods approved by the Board of Directors. Money
Market, as permitted by rule 2a-7 under the Investment Company Act of 1940,
carries all investments at amortized cost, which approximates market value.
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at the end
of the period. Purchases and sales of securities, income receipts, and expense
payments are translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
B. Option Contracts
The Funds (except Money Market) may purchase and write (sell) put options,
purchase call options and write (sell) covered call options as a hedge against
adverse movements in the value of portfolio holdings.
Option contracts are valued daily, and unrealized gains or losses are recorded
based upon the last sales price on the principal exchange on which the options
are traded.
102
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
B. Option Contracts (continued)
The Funds realize a gain or loss upon the expiration or closing of the option
contract. When an option is exercised, the proceeds on sales for a written call
option, the purchase cost for a written put option, or the cost of the security
for a purchased put or call option is adjusted by the amount of premium received
or paid. Realized and unrealized gains or losses on option contracts are
reflected in the accompanying financial statements.
The risk in writing a call option is that the Funds give up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Funds may incur a loss
if the market price of the security decreases and the option is exercised. The
risk in buying an option is that the Funds pay a premium whether or not the
option is exercised. Risks may also arise from an illiquid secondary market, or
from the inability of counterparties to meet the terms of the contract.
C. Futures and Forward Foreign Currency Exchange Contracts
A futures contract is an agreement between two parties to buy and sell a
specific amount of a commodity, security or financial instrument including an
index of stocks at a set price on a future date. The Funds may enter into
futures contracts to manage the risk of changes in interest rates, equity
prices, currency exchange rates or in anticipation of future purchases and sales
of securities.
Upon entering into a futures contract, the Funds are required to deposit with a
broker an amount (initial margin) equal to a percentage of the purchase price
indicated by the futures contract. Subsequent deposits (variation margin) are
received or paid each day by the Funds equal to the daily fluctuations in the
market value of the contract. These amounts are recorded by the Funds as
unrealized gains or losses. When a contract is closed, the Funds record a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Generally,
futures contracts held by the Funds are closed prior to expiration.
A forward foreign currency exchange contract is an agreement to pay or receive
specific amounts of a currency at a future date in exchange for another currency
at an agreed upon exchange rate. The Funds, where authorized, may use forward
foreign currency exchange contracts to hedge certain foreign currency assets.
Contracts are recorded at market value and marked-to-market daily.
The risks associated with futures and foreign currency exchange contracts may
arise from an imperfect correlation between the change in market value of the
securities held by the Funds and the price of the contracts.
Aetna Mutual Funds Semi-Annual Report 103
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
C. Futures and Forward Foreign Currency Exchange Contracts (continued)
Risks may also arise from an illiquid secondary market, or from the inability of
counterparties to meet the terms of the contracts.
Realized and unrealized gains or losses on futures and foreign currency exchange
contracts are reflected in the accompanying financial statements. For federal
tax purposes, any futures contracts and forward foreign currency exchange
contracts which remain open at the end of the fiscal year are marked-to-market
and the resultant net gain or loss is included in federal taxable income.
D. Illiquid and Restricted Securities
Illiquid securities are securities that are not readily marketable. Disposing of
illiquid investments may involve time-consuming negotiation and legal expenses,
and it may be difficult or impossible for the Funds to sell them promptly at an
acceptable price. Restricted securities are subject to legal or contractual
restrictions on resale and may not be publicly sold without registration under
the Federal Securities Act of 1933, under Rule 144A or, are securities offered
pursuant to section 4(2). Each Fund may invest up to 15% (10% in the case of
Money Market and Index Plus) of its total assets in illiquid securities.
Illiquid and restricted securities are valued using market quotations when
readily available. In the absence of market quotations, the securities are
valued based upon their fair value determined under procedures approved by the
Board of Directors. The Funds will not pay the costs of disposition of
restricted securities other than ordinary brokerage fees, if any. Information
regarding illiquid securities held at April 30, 1997 is shown below:
<TABLE>
<CAPTION>
- -------------------- ------------ --------- --------- ----- ------
% of
Acquisition Par Value Average Market Net
Security Description Dates or Shares Unit Cost Value Assets
- -------------------- ------------ --------- --------- ----- ------
<S> <C> <C> <C> <C> <C>
Money Market:
Bridgestone/Firestone Master
Trust, Inc., 9.50% 04/16/97 $9,500,000 $100.00 $9,500,000 2.0%
EG&G, Inc., 5.55-5.60% 04/14-04/21/97 8,200,000 99.75 8,176,468 1.7%
REIG Commercial Mortgage
Funding Trust, 5.738% 12/17/96 7,466,667 100.00 7,466,667 1.6%
International Growth:
Sanitary Wares
Manufacturing Corp. 09/07-10/10/94 761,400 0.06 43,311 0.1%
</TABLE>
E. Federal Income Taxes
As a qualified regulated investment company, each Fund is relieved of federal
income and excise taxes by distributing its net taxable investment income and
capital gains, if any, in compliance with the applicable provisions of the
Internal Revenue Code.
104
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
F. Delayed Delivery Transactions
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
The market value of the securities purchased or sold are identified in the
Funds' Portfolio of Investments. Losses may arise due to changes in the market
value of the securities or from the inability of the counterparties to meet the
terms of the contract.
G. Distributions
Distributions are recorded on the ex-dividend date. Income and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for foreign currency transactions and
losses deferred due to wash sales.
H. Other
Investment transactions are accounted for on the day following trade date,
except same day settlements which are accounted for on the trade date. Interest
income is recorded on an accrual basis. Discounts and premiums on securities
purchased are amortized over the life of the respective security. Dividend
income is recorded on the ex-dividend date. Realized gains and losses from
investment transactions are determined on an identified cost basis.
I. Deferred Organizational Costs
The Company paid organizational expenses in connection with the start-up and
initial registration of the Company. These organizational expenses have been
capitalized and allocated equally to Money Market, Bond, Aetna Fund, Growth and
Income, and International Growth. In addition, Index Plus paid organizational
expenses in connection with its start-up and initial registration.
Organizational expenses are being amortized over 60 months on a straight-line
basis beginning with the commencement of operations. If any or all of the shares
representing initial capital of each Fund are redeemed by any holder thereof
prior to the end of the amortization period, the proceeds will be reduced by the
unamortized organizational expense balance in the same proportion as the number
of shares redeemed bears to the number of initial shares outstanding immediately
preceding the redemption.
- --------------------------------------------------------------------------------
2. Investment Advisory, Management, Shareholder Service and Distribution Fees
- --------------------------------------------------------------------------------
The Funds pay the Investment Adviser annual fees expressed as a percentage of
average daily net assets of each Fund. As the Funds' net assets exceed
predetermined thresholds, lower advisory fees are applied.
Aetna Mutual Funds Semi-Annual Report 105
<PAGE>
- --------------------------------------------------------------------------------
2. Investment Advisory, Management, Shareholder Service and Distribution Fees
(continued)
- --------------------------------------------------------------------------------
Below are the Funds' Investment Advisory fee ranges and the effective rates as
of April 30, 1997:
<TABLE>
<CAPTION>
Fee Effective Fee Effective
Range Rate Range Rate
----- ---- ----- ----
<S> <C> <C> <S> <C> <C>
Money Market .40% - .30% .40% Growth .70% - .55% .70%
Government .50% - .40% .50% Index Plus .45% - .375% .45%
Bond .50% - .40% .50% Small Company .85% - .725% .85%
Aetna Fund .80% - .65% .80% International Growth .85% - .70% .85%
Growth and Income .70% - .55% .68%
</TABLE>
Under the terms of a Subadvisory Agreement among the Funds, Aetna and Aetna's
affiliate, Aeltus, Aeltus supervises the investment and reinvestment of cash and
securities and provides certain related administrative services for each Fund in
exchange for fees up to 0.55% of each Funds' average daily net assets. For the
period ended April 30, 1997, Aetna paid Aeltus $1,784,797 in accordance with the
terms of the agreement.
Under the terms of an Administrative Services Agreement, Aetna acts as
administrator and provides certain administrative and shareholder services and
is responsible for the supervision of other service providers for each Fund.
Each Fund pays Aetna a monthly fee at an annual rate based on average daily net
assets of 0.25% on the first $250 million. As each Fund's net assets exceed $250
million, lower fees will apply.
The Funds have adopted a Shareholder Services Plan for the Adviser Class shares.
Under the Shareholder Service Plan, Aetna is paid a service fee at an annual
rate of 0.25% (0.10% for the Money Market Fund) of the average daily net assets
of the Adviser Class of each Fund. This fee is used as compensation for expenses
incurred in servicing shareholder accounts. For the period ended April 30, 1997,
the Funds paid Aetna $58,902 in service fees, net of waiver of $65,724 for Money
Market.
The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940. The Distribution Plan provides for payments to
Aetna at an annual rate of 0.50% of the average daily net assets of the Adviser
Class shares of each Fund, except for Money Market. Amounts paid by the Funds
are used to pay expenses incurred by Aetna in promoting the sale of the Adviser
Class shares. For the period ended April 30, 1997, the Funds paid Aetna $118,225
in Rule 12b-1 fees. The plan may be terminated upon a majority vote of the
Funds' independent directors.
Presently, the Funds' class-specific expenses are limited to Shareholder
Services and Distribution Plan expenses incurred by the Adviser Class shares.
106
<PAGE>
- --------------------------------------------------------------------------------
3. Reimbursement from Investment Adviser
- --------------------------------------------------------------------------------
The Investment Adviser may, from time to time, make reimbursements to a Fund for
some or all of its operating expenses or it may waive fees. Reimbursement and
waiver arrangements, which may be terminated at any time without notice, will
increase a Fund's yield and total return.
- --------------------------------------------------------------------------------
4. Purchases and Sales of Investment Securities
- --------------------------------------------------------------------------------
Purchases and sales of investment securities, excluding short-term investments,
for all Funds except Money Market, for the period ended April 30, 1997:
Cost of Proceeds
Purchases from Sales
--------- ----------
Money Market................... $5,302,302,814 $5,181,244,000
Government..................... 9,229,485 8,574,755
Bond........................... 3,900,111 409,011
Aetna Fund..................... 33,795,727 27,013,245
Growth and Income.............. 360,079,408 352,963,550
Growth......................... 35,570,165 26,647,493
Index Plus..................... 13,728,068 3,036,606
Small Company.................. 16,682,618 31,308,224
International Growth........... 75,061,331 85,403,215
- --------------------------------------------------------------------------------
5. Options
- --------------------------------------------------------------------------------
All Funds except Money Market may use options. For the six month period ended
April 30, 1997, the following reflects the covered call and put option activity:
<TABLE>
<CAPTION>
-------------------- -----------------
Call Options Written Growth and Income
-------------------- -----------------
Number of Deferred Premium Realized
Contracts Received Gain (Loss)
<S> <C> <C> <C>
Outstanding October 31, 1996 1,928 $1,632,779 $ 761,151
Written............................. 2,421 3,993,216 --
Canceled............................ (4,297) (5,613,389) (1,980,202)
Exercised...........................
Expired............................. (17) (4,836) --
----------- ------------------ --------------
Outstanding April 30, 1997 35 $ 7,770 $(1,219,051)
=========== ================== ==============
------------------- -----------------
Put Options Written Growth and Income
------------------- -----------------
Number of Deferred Premium Realized
Contracts Received Gain (Loss)
Outstanding October 31, 1996 95 $ 101,962 $ --
Written............................. 87 108,489 --
Canceled............................ (95) (117,075) 42,640
Exercised........................... (87) (93,376) 93,376
Expired............................. -- -- --
---------- ------------------- --------------
Outstanding April 30, 1997 -- $ -- $ 136,016
========== =================== ==============
</TABLE>
Aetna Mutual Funds Semi-Annual Report 107
<PAGE>
- --------------------------------------------------------------------------------
6. Capital Loss Carryforwards
- --------------------------------------------------------------------------------
At April 30, 1997, for federal income tax purposes, the Funds had the following
capital loss carryforwards:
Capital Loss
Fund Carryforward Year of Expiration
---- ------------ ------------------
Government $ 271,000 2002
546,000 2003
------------------------------------------------------------------------------
Bond 129,000 2001
800,000 2002
------------------------------------------------------------------------------
International Growth 104,000 2002
2,700,000 2003
------------------------------------------------------------------------------
The Board of Directors will not distribute any realized gains until the capital
loss carryforwards have been offset or expire.
- --------------------------------------------------------------------------------
7. Forward Foreign Currency Exchange Contracts
- --------------------------------------------------------------------------------
At April 30, 1997, Growth and Income and International Growth had the following
open forward foreign currency exchange contracts that obligate the Funds to
deliver currencies at specified future dates. The net unrealized gains of
$154,577 and $295,848, respectively, on these contracts are included in the
accompanying financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
Growth and Income:
Exchange Currency to U.S. $ Value Currency to U.S. $ Value Unrealized
Date be Delivered October 31, 1996 be Received October 31, 1996 Gain (Loss)
---- ------------ ---------------- ----------- ---------------- -----------
Contracts to Buy
- ----------------
<S> <C> <C> <C> <C> <C>
05/20/97 197,213 $ 197,213 6,900,000 $ 193,446 $ (3,767)
U.S. Dollar Belgian Franc
- --------------------------------------------------------------------------------------------------------------
05/05/97 384,916 384,916 656,000 378,960 (5,956)
U.S. Dollar German Deutschemark
- --------------------------------------------------------------------------------------------------------------
05/13/97 107,312 107,312 608,000 104,267 (3,045)
U.S. Dollar French Franc
- --------------------------------------------------------------------------------------------------------------
05/06/97 40,670 40,670 102,000 40,631 (39)
U.S. Dollar Malaysian Ringgit
- --------------------------------------------------------------------------------------------------------------
05/01/97 144,525 144,525 281,000 144,253 (272)
U.S. Dollar Dutch Guilder
- --------------------------------------------------------------------------------------------------------------
05/20/97 489,087 489,087 3,630,000 463,096 (25,991)
U.S. Dollar Swedish Krona
- --------------------------------------------------------------------------------------------------------------
</TABLE>
108
<PAGE>
- --------------------------------------------------------------------------------
7. Forward Foreign Currency Exchange Contracts (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income (continued):
Exchange Currency to U.S. $ Value Currency to U.S. $ Value Unrealized
Date be Delivered October 31, 1996 be Received October 31, 1996 Gain (Loss)
---- ------------ ---------------- ----------- ---------------- -----------
Contracts to Sell
- -----------------
<S> <C> <C> <C> <C> <C>
05/20/97 21,190,000 $ 594,073 606,451 $ 606,451 $ 12,378
Belgian Franc U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/03/97 1,192,000 811,989 828,742 828,742 16,753
Swiss France U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/05/97 3,162,000 1,826,633 1,877,615 1,877,615 50,982
German Deutschemark U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/13/97 6,931,800 1,188,755 1,228,789 1,228,789 40,034
French Franc U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/02/97 218,000 353,717 353,596 353,596 (121)
British Pound U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/05/97 122,410,000 71,490 71,713 71,713 223
Italian Lira U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/17/97 134,660,000 1,068,617 1,106,089 1,106,089 37,472
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
07/24/97 112,930,000 901,059 906,413 906,413 5,354
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/18/97 1,339,000 689,711 692,728 692,728 3,017
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
07/18/97 770,000 397,452 399,378 399,378 1,926
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/20/97 3,630,000 463,095 488,724 488,724 25,629
Swedish Krona U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
$ 154,577
==========
</TABLE>
<TABLE>
<CAPTION>
International Growth:
Contracts to Sell
- -----------------
<S> <C> <C> <C> <C> <C>
05/20/97 30,650,000 $ 859,668 877,080 $ 877,080 $ 17,412
Belgian Franc U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/03/97 2,565,000 1,747,763 1,782,656 1,782,656 34,893
Swiss Franc U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/05/97 7,240,000 4,182,952 4,302,255 4,302,255 119,303
German Deutschemark U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
05/13/97 15,938,800 2,733,514 2,831,312 2,831,312 97,798
French Franc U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/17/97 32,160,000 255,239 261,190 261,190 5,951
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
07/24/97 166,763,200 1,331,224 1,338,669 1,338,669 7,445
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
06/18/97 2,323,000 1,196,681 1,202,929 1,202,929 6,248
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
07/18/97 2,820,000 1,456,058 1,462,856 1,462,856 6,798
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------------------------------------
==========
$ 295,848
==========
</TABLE>
Aetna Mutual Funds Semi-Annual Report 109
<PAGE>
- --------------------------------------------------------------------------------
8. Authorized Capital Shares and Capital Share Transactions
- --------------------------------------------------------------------------------
The Company is authorized to issue a total of 4.8 billion shares. Of those 4.8
billion shares, 4.2 billion have been designated to the Funds described in this
report as follows: All of the Funds, except Money Market and International
Growth, have been allocated 100 million shares each of Select and Adviser Class
shares. Money Market has been allocated one billion shares each of Select and
Adviser Class shares and International Growth has been allocated 200 million
shares each of Select and Adviser Class shares. Share transactions for each Fund
were as follows:
<TABLE>
<CAPTION>
------------
Money Market
------------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
Shares sold 165,312,107 365,382,830 250,529,254 313,079,417
Shares issued upon reinvestment 6,860,057 11,942,795 3,363,624 5,181,096
Shares redeemed (164,864,254) (329,569,238) (229,887,921) (277,136,873)
------------------- ------------------ ------------------- -----------------
Net increase 7,307,910 47,756,387 24,004,957 41,123,640
=================== ================== =================== =================
------------
Government
------------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- -----------------
Shares sold 62,390 713,747 15,660 39,879
Shares issued upon reinvestment 16,795 74,064 1,672 3,012
Shares redeemed (145,585) (1,613,555) (17,180) (29,591)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) (66,400) (825,744) 152 13,300
=================== ================== =================== =================
----
Bond
----
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- ----------------
Shares sold 625,089 1,648,950 12,009 71,509
Shares issued upon reinvestment 83,191 194,746 2,046 11,487
Shares redeemed (441,013) (2,175,384) (22,848) (710,934)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) 267,267 (331,688) (8,793) (627,938)
=================== ================== =================== =================
</TABLE>
110
<PAGE>
- --------------------------------------------------------------------------------
8. Authorized Capital Shares and Capital Share Transactions (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------
Aetna Fund
----------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- ----------------
<S> <C> <C> <C> <C>
Shares sold 425,416 697,153 95,712 183,243
Shares issued upon reinvestment 883,926 478,258 36,708 9,351
Shares redeemed (671,036) (1,414,565) (28,535) (22,472)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) 638,306 (239,154) 103,885 170,122
=================== ================== =================== =================
-----------------
Growth and Income
-----------------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- ----------------
Shares sold 2,435,439 2,267,932 230,790 306,132
Shares issued upon reinvestment 4,628,605 1,939,499 82,945 13,795
Shares redeemed (841,237) (6,711,381) (41,661) (62,059)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) 6,222,807 (2,503,950) 272,074 257,868
=================== ================== =================== =================
------
Growth
------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- ----------------
Shares sold 932,668 1,929,958 110,642 237,851
Shares issued upon reinvestment 294,473 391,202 28,553 21,388
Shares redeemed (230,783) (1,839,571) (31,643) (60,225)
------------------- ------------------ ------------------- -----------------
Net increase 996,358 481,589 107,552 199,014
=================== ================== =================== =================
</TABLE>
Aetna Mutual Funds Semi-Annual Report 111
<PAGE>
- --------------------------------------------------------------------------------
8. Authorized Capital Shares and Capital Share Transactions (continued)
- --------------------------------------------------------------------------------
----------
Index Plus
----------
Select Adviser
----------------------- ----------------------
Period from Period from
December 10, 1996 to February 3, 1996 to
April 30, 1997 April 30, 1997
--------------- --------------
Shares sold 1,226,320 14,989
Shares redeemed (141,905) --
------------------- -------------------
Net increase 1,084,415 14,989
=================== ===================
<TABLE>
<CAPTION>
-------------
Small Company
-------------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
Shares sold 953,165 482,151 67,873 199,296
Shares issued upon reinvestment 157,197 254,901 79,226 11,630
Shares redeemed (1,702,512) (1,025,158) (41,697) (37,416)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) (592,150) (288,106) 105,402 173,510
=================== ================== =================== =================
--------------------
International Growth
--------------------
Select Adviser
--------------------------------------- ---------------------------------------
Period ended Year ended Period ended Year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
--------------- ----------------- --------------- -----------------
Shares sold 321,146 1,148,784 76,544 133,505
Shares issued in merger -- 2,056,895 -- 48,739
Shares issued upon reinvestment 172,688 81,841 15,434 61,119
Shares redeemed (349,174) (1,767,418) (352,947) (797,971)
------------------- ------------------ ------------------- -----------------
Net increase (decrease) 144,660 1,520,102 (260,969) (554,608)
=================== ================== =================== =================
</TABLE>
112
<PAGE>
- --------------------------------------------------------------------------------
8. Authorized Capital Shares and Capital Share Transactions (continued)
- --------------------------------------------------------------------------------
As of April 30, 1997, the following shares of the Funds were owned by Aetna and
its affiliates:
Select Adviser
------ -------
Money Market 89,949,737 --
Government 845,169 --
Bond 959,857 --
Aetna Fund 135,176 --
Growth and Income 603,893 --
Growth 148,674 --
Index Plus 1,020,997 2,365
Small Company 1,244,627 --
International Growth 2,055,124 1,432,269
Aetna Mutual Funds Semi-Annual Report 113
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
------------
Money Market
------------
------------
Select Class
------------
Six month Ten-month
period ended Year Year period Year
April 30, ended ended ended ended
1997 October 31, October 31, October 31, December 31,
(Unaudited) 1996 1995 1994 1993
-------------- ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ----------- ----------
Income from investment operations:
Net investment income ................ 0.03 0.05 0.06 0.03 0.03
---------- ----------- ----------- ----------- ----------
Total .............................. 0.03 0.05 0.06 0.03 0.03
Less distributions:
From net investment income ........... (0.03) (0.05) (0.06) (0.03) (0.03)
---------- ----------- ----------- ----------- ----------
Net asset value per share, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== =========== =========== =========== ==========
Total return ............................ 2.66% 5.44% 5.95% 3.33% 3.29%
Net assets, end of period (000's) ....... $ 330,589 $ 323,281 $ 275,524 $ 161,756 $ 107,844
Ratio of total expenses to average net
assets* .............................. 0.33% 0.30% 0.27% 0.21% 0.00%
Ratio of net investment income to
average net assets* .................. 5.28% 5.30% 5.78% 4.05% 3.33%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 0.84% 0.83% 0.88% 0.85% 0.95%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 4.78% 4.78% 5.17% 3.38% 2.38%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
114
<PAGE>
<TABLE>
<CAPTION>
------------
Money Market
------------
-------------
Adviser Class
-------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ---------- ---------
Income from investment operations:
Net investment income ................ 0.03 0.05 0.06 0.03
----------- ----------- ---------- ---------
Total .............................. 0.03 0.05 0.06 0.03
Less distributions:
From net investment income ........... (0.03) (0.05) (0.06) (0.03)
----------- ----------- ---------- ---------
Net asset value per share, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== ========== =========
Total return ............................ 2.66% 5.44% 5.95% 2.41%
Net assets, end of period (000's) ....... $ 143,854 $ 119,849 $ 78,726 $ 47,350
Ratio of total expenses to average net
assets* .............................. 0.33% 0.30% 0.26% 0.21%
Ratio of net investment income to
average net assets* .................. 5.28% 5.30% 5.79% 4.27%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 0.94% 0.93% 0.87% 0.92%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 4.68% 4.67% 5.19% 3.67%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 115
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
----------
Government
----------
------------
Select Class
------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 9.80 $ 10.01 $ 9.41 $ 10.00
-------- --------- --------- ---------
Income from investment operations:
Net investment income ................ 0.28 0.56 0.64 0.40
Net realized and unrealized gain
(loss) ............................. (0.15) (0.13) 0.59 (0.63)
-------- --------- --------- ---------
Total .............................. 0.13 0.43 1.23 (0.23)
Less distributions:
From net investment income ........... (0.33) (0.64) (0.63) (0.36)
-------- --------- --------- ---------
Net asset value per share, end of period $ 9.60 $ 9.80 $ 10.01 $ 9.41
======== ========= ========= =========
Total return ............................ 1.34% 4.43% 13.58% (2.37)%
Net assets, end of period (000's) ....... $ 9,816 $ 10,662 $ 19,154 $ 26,110
Ratio of total expenses to average net
assets* .............................. 0.70% 0.70% 0.70% 0.41%
Ratio of net investment income to
average net assets* .................. 5.88% 5.67% 6.79% 5.29%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.73% 1.57% 1.30% 1.16%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 4.85% 4.80% 6.19% 4.54%
Portfolio turnover rate ................. 87.41% 50.48% 117.31% 43.63%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
116
<PAGE>
<TABLE>
<CAPTION>
----------
Government
----------
-------------
Adviser Class
-------------
Period
Six-month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- ------------- ------------ -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 9.79 $ 10.00 $ 9.41 $ 9.67
-------- -------- -------- --------
Income from investment operations:
Net investment income ................ 0.25 0.48 0.60 0.24
Net realized and unrealized gain
(loss).............................. (0.15) (0.13) 0.56 (0.24)
-------- -------- -------- --------
Total .............................. 0.10 0.35 1.16 0.00
Less distributions:
From net investment income ........... (0.29) (0.56) (0.57) (0.26)
-------- -------- -------- --------
Net asset value per share, end of period $ 9.60 $ 9.79 $ 10.00 $ 9.41
======== ======== ======== ========
Total return ............................ 1.07% 3.75% 12.60% (0.06)%
Net assets, end of period (000's) ....... $ 518 $ 526 $ 405 $ 151
Ratio of total expenses to average net
assets* .............................. 1.45% 1.45% 1.51% 1.28%
Ratio of net investment income to average
net assets* .......................... 5.14% 4.96% 6.02% 4.68%
Ratio of net expense before reimbursement
and waiver to average net assets* 2.48% 2.32% 2.11% 2.11%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 4.11% 4.09% 5.42% 3.85%
Portfolio turnover rate ................. 87.41% 50.48% 117.31% 43.63%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 117
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
----
Bond
----
------------
Select Class
------------
Ten-month
Six month Year Year period Year
period ended ended ended ended ended
April 30, 1997 October 31, October 31, October 31, December 31,
(Unaudited) 1996 1995 1994 1993
-------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value per share, beginning of
period ................................. $ 10.09 $ 10.27 $ 9.58 $ 10.37 $ 9.99
--------- --------- ---------- --------- ---------
Income from investment operations:
Net investment income .................. 0.30 0.65 0.65 0.52 0.55
Net realized and unrealized gain (loss) (0.09) (0.15) 0.65 (0.86) 0.45
--------- --------- ---------- --------- ---------
Total ................................ 0.21 0.50 1.30 (0.34) 1.00
Less distributions:
From net investment income ............. (0.33) (0.68) (0.61) (0.45) (0.55)
In excess of net investment income ..... -- -- -- -- (0.07)
--------- --------- ---------- --------- ---------
Net asset value per share, end of period .. $ 9.97 $ 10.09 $ 10.27 $ 9.58 $ 10.37
========= ========= ========== ========= =========
Total return .............................. 2.11% 5.09% 14.06% (3.31)% 10.20%
Net assets, end of period (000's) ......... $ 31,178 $ 28,864 $ 32,778 $ 27,584 $ 46,788
Ratio of total expenses to average net
assets* ................................ 0.75% 0.75% 0.79% 0.76% 0.47%
Ratio of net investment income to average
net assets* ............................ 6.04% 6.16% 6.56% 6.29% 5.34%
Ratio of net expense before reimbursement
and waiver to average net assets* ...... 1.11% 1.16% 1.06% 1.06% 1.01%
Ratio of net investment income before
reimbursement and waiver to average net
assets* ................................ 5.68% 5.75% 6.25% 5.98% 4.80%
Portfolio turnover rate ................... 1.48% 42.33% 56.99% 51.80% 50.01%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
118
<PAGE>
<TABLE>
<CAPTION>
----
Bond
----
-------------
Adviser Class
-------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
---------------- --------------- -------------- ------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 10.09 $ 10.27 $ 9.58 $ 9.92
-------- --------- -------- ----------
Income from investment operations:
Net investment income ................ 0.26 0.62 0.56 0.28
Net realized and unrealized gain
(loss) ............................. (0.10) (0.20) 0.66 (0.35)
-------- --------- -------- ----------
Total .............................. 0.16 0.42 1.22 (0.07)
Less distributions:
From net investment income ........... (0.29) (0.60) (0.53) (0.27)
-------- --------- -------- ----------
Net asset value per share, end of period $ 9.96 $ 10.09 $ 10.27 $ 9.58
======== ========= ======== ==========
Total return ............................ 1.64% 4.27% 13.28% (0.68)%
Net assets, end of period (000's) ....... $ 779 $ 877 $ 7,340 $ 25,405
Ratio of total expenses to average net
assets* .............................. 1.50% 1.50% 1.50% 1.49%
Ratio of net investment income to
average net assets* .................. 5.29% 5.47% 5.91% 5.36%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.86% 1.91% 1.82% 1.81%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 4.93% 5.06% 5.60% 5.04%
Portfolio turnover rate ................. 1.48% 42.33% 56.99% 51.80%
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 119
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
----------
Aetna Fund
----------
------------
Select Class
------------
Ten-month
Six month Year Year period Year
period ended ended ended ended ended
April 30, 1997 October 31, October 31, October 31, December 31,
(Unaudited) 1996 1995 1994 1993
-------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value per share, beginning of
period ................................. $ 13.52 $ 12.36 $ 10.65 $ 10.82 $ 10.18
--------- --------- ---------- --------- ---------
Income from investment operations:
Net investment income .................. 0.16 0.31 0.35 0.23 0.34
Net realized and unrealized gain (loss) 0.36 1.77 1.69 (0.28) 0.64
--------- --------- ---------- --------- ---------
Total ................................ 0.52 2.08 2.04 (0.05) 0.98
Less distributions:
From net investment income ............. (0.18) (0.35) (0.33) (0.12) (0.30)
In excess of net investment income ..... -- -- -- -- (0.01)
From net realized gains on investments (1.50) (0.57) -- -- (0.03)
--------- --------- ---------- --------- ---------
Net asset value per share, end of period .. $ 12.36 $ 13.52 $ 12.36 $ 10.65 $ 10.82
========= ========= ========== ========= =========
Total return .............................. 3.95% 17.63% 19.45% (0.42)% 9.84%
Net assets, end of period (000's) ......... $ 88,853 $ 88,625 $ 83,941 $ 76,267 $ 63,982
Ratio of total expenses to average net
assets* ................................ 1.26% 1.31% 1.27% 1.09% 0.93%
Ratio of net investment income to average
net assets* ............................ 2.46% 2.42% 3.14% 2.65% 3.21%
Ratio of net expense before reimbursement
and waiver to average net assets* ...... 1.26% 1.31% 1.30% 1.32% 1.34%
Ratio of net investment income before
reimbursement and waiver to average net
assets* ................................ 2.46% 2.42% 3.11% 2.42% 2.79%
Portfolio turnover rate ................... 34.35% 117.88% 129.05% 86.10% 19.95%
Average commission rate paid per share .... $ 0.0594 $0.0557 -- -- --
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
120
<PAGE>
<TABLE>
<CAPTION>
----------
Aetna Fund
----------
-------------
Adviser Class
-------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
---------------- ------------- -------------- ------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 13.49 $ 12.34 $ 10.62 $ 10.54
---------- --------- ---------- ---------
Income from investment operations:
Net investment income ................ 0.11 0.20 0.23 0.19
Net realized and unrealized gain ..... 0.35 1.79 1.91 --
---------- --------- ---------- ---------
Total .............................. 0.46 1.99 2.14 0.19
Less distributions:
From net investment income ........... (0.14) (0.27) (0.42) (0.11)
From net realized gains on
investments ........................ (1.50) (0.57) -- --
---------- --------- ---------- ---------
Net asset value per share, end of period $ 12.31 $ 13.49 $ 12.34 $ 10.62
========== ========= ========== =========
Total return ............................ 3.44% 16.83% 18.32% 1.84%
Net assets, end of period (000's) ....... $ 4,733 $ 3,783 $ 1,362 $ 26,396
Ratio of total expenses to average net
assets* .............................. 2.02% 2.07% 2.04% 1.87%
Ratio of net investment income to
average net assets* .................. 1.70% 1.60% 2.61% 1.90%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 2.02% 2.07% 2.07% 2.06%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 1.70% 1.60% 2.58% 1.67%
Portfolio turnover rate ................. 34.35% 117.88% 129.05% 86.10%
Average commission rate paid per share $ 0.0594 $0.0557 -- --
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 121
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
-----------------
Growth and Income
-----------------
-----------------
Select Class
-----------------
Six month Ten-month
period ended Year Year period Year
April 30, ended ended ended ended
1997 October 31, October 31, October 31, December 31,
(Unaudited) 1996 1995 1994 1993
-------------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 15.74 $ 13.46 $ 11.11 $ 11.03 $ 10.51
----------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income ................ 0.08 0.19 0.21 0.12 0.19
Net realized and unrealized gain ..... 1.80 3.09 2.27 0.04 0.50
----------- ---------- ---------- ---------- ---------
Total .............................. 1.88 3.28 2.48 0.16 0.69
Less distributions:
From net investment income ........... (0.14) (0.24) (0.13) (0.08) (0.16)
From net realized gains on
investments ........................ (2.60) (0.76) - - (0.01)
----------- ---------- ---------- ---------- ---------
Net asset value per share, end of period $ 14.88 $ 15.74 $ 13.46 $ 11.11 $ 11.03
=========== ========== ========== ========== =========
Total return ............................ 12.64% 25.69% 22.58% 1.40% 6.58%
Net assets, end of period (000's) ....... $ 449,830 $ 377,784 $ 356,803 $ 301,360 $ 60,127
Ratio of total expenses to average net
assets* .............................. 1.03% 1.08% 1.10% 0.92% 1.13%
Ratio of net investment income to
average net assets* .................. 1.09% 1.35% 1.73% 1.51% 1.77%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.03% 1.08% 1.10% 1.03% 1.27%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 1.09% 1.35% 1.73% 1.39% 1.55%
Portfolio turnover rate ................. 85.36% 106.09% 127.43% 54.13% 23.60%
Average commission rate paid per share $ 0.0436 $ 0.0505 - - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
122
<PAGE>
<TABLE>
<CAPTION>
-----------------
Growth and Income
-----------------
-----------------
Adviser Class
-----------------
Period
from
Six month Year Year April 15, 1994
period ended ended ended to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- -------------- --------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 15.69 $ 13.43 $ 11.08 $ 10.75
---------- ---------- ---------- ---------
Income from investment operations:
Net investment income ................ 0.03 0.08 0.12 0.11
Net realized and unrealized gain ..... 1.79 3.08 2.31 0.30
---------- ---------- ---------- ---------
Total .............................. 1.82 3.16 2.43 0.41
Less distributions:
From net investment income ........... (0.09) (0.14) (0.08) (0.08)
From net realized gains on
investments ........................ (2.60) (0.76) - -
---------- ---------- ---------- ---------
Net asset value per share, end of period $ 14.82 $ 15.69 $ 13.43 $ 11.08
========== ========== ========== =========
Total return ............................ 12.24% 24.70% 21.90% 3.71%
Net assets, end of period (000's) ....... $ 10,302 $ 6,638 $ 2,217 $ 5,740
Ratio of total expenses to average net
assets* .............................. 1.78% 1.83% 1.84% 2.32%
Ratio of net investment income to
average net assets* .................. 0.34% 0.55% 1.14% 1.74%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.78% 1.83% 1.84% 2.42%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 0.34% 0.55% 1.14% 1.65%
Portfolio turnover rate ................. 85.36% 106.09% 127.43% 54.13%
Average commission rate paid per share $ 0.0436 $ 0.0505 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 123
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
-----------------
Growth
-----------------
-----------------
Select Class
-----------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
---------------- ------------------------------ ------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 14.36 $ 13.75 $ 10.78 $ 10.00
---------- --------- ---------- ----------
Income from investment operations:
Net investment income ................ 0.02 0.03 0.04 0.09
Net realized and unrealized gain ..... 1.02 2.39 3.02 0.69
---------- --------- ---------- ----------
Total .............................. 1.04 2.42 3.06 0.78
Less distributions:
From net investment income ........... (0.03) (0.05) (0.08) -
From net realized gains on
investments ........................ (1.20) (1.76) (0.01) -
---------- --------- ---------- ----------
Net asset value per share, end of period $ 14.17 $ 14.36 $ 13.75 $ 10.78
========== ========= ========== ==========
Total return ............................ 7.36% 19.82% 28.79% 7.70%
Net assets, end of period (000's) ....... $ 59,006 $ 45,473 $ 36,936 $ 27,188
Ratio of total expenses to average net
assets* .............................. 1.21% 1.28% 1.20% 0.92%
Ratio of net investment income to
average net assets* .................. 0.31% 0.20% 0.36% 1.10%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.21% 1.28% 1.30% 1.42%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... 0.31% 0.20% 0.26% 0.60%
Portfolio turnover rate ................. 47.25% 144.19% 171.75% 120.32%
Average commission rate paid per share $ 0.0606 $ 0.0598 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
124
<PAGE>
<TABLE>
<CAPTION>
-----------------
Growth
-----------------
-----------------
Adviser Class
-----------------
Period
from
Six month Year Year April 15, 1994
period ended ended ended to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
---------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 14.17 $ 13.63 $ 10.74 $ 10.26
---------- ---------- ---------- ---------
Income from investment operations:
Net investment income ................ (0.03) (0.08) (0.06) (0.02)
Net realized and unrealized gain ..... 1.00 2.38 3.00 0.50
---------- ---------- ---------- ---------
Total .............................. 0.97 2.30 2.94 0.48
Less distributions:
From net investment income ........... - - (0.05) -
From net realized gains on
investments ........................ (1.14) (1.76) - -
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 14.00 $ 14.17 $ 13.63 $ 10.74
========== ========== ========== =========
Total return ............................ 6.96% 18.97% 27.92% 4.58%
Net assets, end of period (000's) ....... $ 6,067 $ 4,615 $ 1,727 $ 417
Ratio of total expenses to average net
assets* .............................. 1.96% 2.03% $ 2.03% $ 1.72%
Ratio of net investment income to
average net assets* .................. (0.44)% (0.59)% (0.47)% (0.25)%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.96% 2.03% 2.14% 2.17%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... (0.44)% (0.59)% (0.58)% (0.71)%
Portfolio turnover rate ................. 47.25% 144.19% 171.75% 120.32%
Average commission rate paid per share $ 0.0606 $ 0.0598 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 125
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout the period:
<TABLE>
<CAPTION>
-----------------
Index Plus
-----------------
-----------------
Select Class
-----------------
Period from
December 10, 1996 to
April 30, 1997
(Unaudited)
------------------------
<S> <C>
Net asset value per share, beginning of period .......... $ 10.00
---------
Income from investment operations:
Net investment income ................................ 0.05
Net realized and unrealized gain ..................... 0.76
---------
Total .............................................. 0.81
Less distributions:
From net investment income ........................... (0.02)
---------
Net asset value per share, end of period ................ $ 10.79
=========
Total return ....................................... 8.06%
Net assets, end of period (000's) ....................... $ 11,703
Ratio of total expenses to average net assets* .......... 0.70%
Ratio of net investment income to average net assets* ... 1.25%
Ratio of net expense before reimbursement and waiver to
average net assets* .................................. 1.99%
Ratio of net investment income before reimbursement and
waiver to average net assets* ........................ (0.04)%
Portfolio turnover rate ................................. 28.67%
Average commission rate paid per share .................. $ 0.0347
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
126
<PAGE>
<TABLE>
<CAPTION>
-----------------
Index Plus
-----------------
-----------------
Adviser Class
-----------------
Period from
February 3, 1997
to
April 30, 1997
(Unaudited)
-------------------
<S> <C>
Net asset value per share, beginning of period ................... $ 10.57
----------
Income from investment operations:
Net investment income ......................................... 0.02
Net realized and unrealized gain .............................. 0.18
----------
Total from investment operations ............................ 0.20
----------
Net asset value per share, end of period ......................... $ 10.77
==========
Total return ..................................................... 1.89%
Net assets, end of period (000's) ................................ $ 161
Ratio of total expenses to average net assets* ................... 1.45%
Ratio of net investment income to average net assets* ............ 0.39%
Ratio of net expense before reimbursement and waiver to average
net assets* ................................................... 2.91%
Ratio of net investment income before reimbursement and waiver to
average net assets* ........................................... (1.08)%
Portfolio turnover rate* ......................................... 28.67%
Average commission rate paid per share ........................... $ 0.0347
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 127
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
-----------------
Small Company
-----------------
-----------------
Select Class
-----------------
Ten-month
Six month Year Year period
period ended ended ended ended
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
----------- --------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 14.67 $ 13.52 $ 10.39 $ 10.00
Income from investment operations:
Net investment income ................ (0.03) (0.08) - 0.02
Net realized and unrealized gain ..... 0.49 2.64 3.15 0.37
---------- ---------- ---------- ----------
Total .............................. 0.46 2.56 3.15 0.39
Less distributions:
From net investment income ........... - - (0.02) -
From net realized gains on
investments ........................ (3.51) (1.41) - -
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 11.62 $ 14.67 $ 13.52 $ 10.39
========== ========== ========== ==========
Total return ............................ 2.98% 19.78% 30.39% 3.90%
Net assets, end of period (000's) ....... $ 18,566 $ 32,125 $ 33,511 $ 25,879
Ratio of total expenses to average net
assets* .............................. 1.61% 1.44% 1.41% 1.15%
Ratio of net investment income to
average net assets* .................. (0.53)% (0.53)% (0.01)% 0.21%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 1.61% 1.44% 1.49% 1.58%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... (0.53)% (0.53)% (0.08)% (0.22)%
Portfolio turnover rate ................. 64.18% 163.21% 156.43% 116.28%
Average commission rate paid per share $ 0.0569 $ 0.0575 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
128
<PAGE>
<TABLE>
<CAPTION>
-----------------
Small Company
-----------------
-----------------
Adviser Class
-----------------
Period
Six month Year Year from
period ended ended ended April 15, 1994 to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- -------------- ------------- ------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 14.42 $ 13.39 $ 10.35 $ 10.24
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income ................ (0.08) (0.18) (0.11) (0.04)
Net realized and unrealized gain ..... 0.48 2.62 3.15 0.15
---------- ---------- ---------- ---------
Total .............................. 0.40 2.44 3.04 0.11
Less distributions:
From net realized gains on
investments ........................ (3.42) (1.41) - -
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 11.40 $ 14.42 $ 13.39 $ 10.35
========== ========== ========== =========
Total return ............................ 2.55% 19.02% 29.44% 0.98%
Net assets, end of period (000's) ....... $ 4,274 $ 3,884 $ 1,285 $ 205
Ratio of total expenses to average net
assets* .............................. 2.36% 2.20% 2.23% 1.78%
Ratio of net investment income to
average net assets* .................. (1.28)% (1.26)% (0.89)% (0.72)%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 2.36% 2.20% 2.30% 2.14%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... (1.28)% (1.26)% (0.97)% (1.07)%
Portfolio turnover rate ................. 64.18% 163.21% 156.43% 116.28%
Average commission rate paid per share $ 0.0569 $ 0.0575 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 129
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
----------------------
International Growth
----------------------
----------------------
Select Class
----------------------
Six month Ten-month
period ended Year Year period Year
April 30, ended ended ended ended
1997 October 31, October 31, October 31, December 31,
(Unaudited) 1996 1995 1994 1993
-------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value per share, beginning of
period ................................ $ 11.79 $ 10.62 $ 11.56 $ 11.17 $ 8.88
--------- --------- ---------- --------- ---------
Income from investment operations:
Net investment income .................. (0.01) 0.03 0.11 0.06 0.05
Net realized and unrealized gain (loss) 1.79 1.59 (0.09) 0.33 2.65
--------- --------- ---------- --------- ---------
Total ................................ 1.78 1.62 0.02 0.39 2.70
Less distributions:
From net investment income ............. (0.16) (0.19) (0.40) 0.00 (0.05)
In excess of net investment income ..... - - - - (0.34)
From net realized gains on investments (0.89) (0.26) (0.56) - (0.02)
--------- --------- ---------- --------- ---------
Net asset value per share, end of period .. $ 12.52 $ 11.79 $ 10.62 $ 11.56 $ 11.17
========= ========= ========== ========= =========
Total return .............................. 15.59% 15.61% (0.04)% 3.49% 30.37%
Net assets, end of period (000's) ......... $ 50,439 $ 45,786 $ 25,102 $ 31,479 $ 39,847
Ratio of total expenses to average net
assets* ................................ 1.89% 2.17% 1.37% 1.66% 1.48%
Ratio of net investment income to average
net assets* ............................ (0.20)% 0.40% 1.02% 0.71% 0.50%
Ratio of net expense before reimbursement
and waiver to average net assets* ...... 1.89% 2.17% 1.50% 1.80% 1.77%
Ratio of net investment income before
reimbursement and waiver to average net
assets* ................................ (0.20)% 0.40% 0.88% 0.57% 0.20%
Portfolio turnover rate ................... 106.45% 135.92% 32.91% 81.67% 110.38%
Average commission rate paid per share .... $0.0426 $0.0178 - - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
130
<PAGE>
<TABLE>
<CAPTION>
----------------------
International Growth
----------------------
----------------------
Adviser Class
----------------------
Period
from
Six month Year Year April 15, 1994
period ended ended ended to
April 30, 1997 October 31, October 31, October 31,
(Unaudited) 1996 1995 1994
--------------- --------------- ------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of
period ............................... $ 11.77 $ 10.59 $ 11.51 $ 11.24
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income ................ (0.06) (0.05) 0.03 0.01
Net realized and unrealized gain
(loss) ............................. 1.80 1.57 (0.20) 0.26
---------- ---------- ---------- ----------
Total .............................. 1.74 1.52 (0.17) 0.27
Less distributions:
From net investment income ........... (0.12) (0.08) (0.27) -
From net realized gains on
investments ........................ (0.89) (0.26) (0.48) -
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 12.50 $ 11.77 $ 10.59 $ 11.51
========== ========== ========== ==========
Total return ............................ 15.21% 14.67% (0.81)% 2.40%
Net assets, end of period (000's) ....... $ 21,047 $ 22,893 $ 26,464 $ 26,647
Ratio of total expenses to average net
assets* .............................. 2.64% 2.94% 2.12% 0.27%
Ratio of net investment income to
average net assets* .................. (0.95)% (0.42)% 0.27% 0.17%
Ratio of net expense before
reimbursement and waiver to average
net assets* .......................... 2.64% 2.94% 2.25% 2.41%
Ratio of net investment income before
reimbursement and waiver to average
net assets* .......................... (0.95)% (0.42)% 0.14% 0.02%
Portfolio turnover rate ................. 106.45% 135.92% 32.91% 81.67%
Average commission rate paid per share $ 0.0426 $ 0.0178 - -
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Mutual Funds Semi-Annual Report 131
<PAGE>
[This page intentionally left blank]
<PAGE>
Aetna Money Market Fund
Aetna Government Fund
Aetna Bond Fund
The Aetna Fund
Aetna Growth and Income Fund
Aetna Growth Fund
Aetna Index Plus Fund
Aetna Small Company Fund
Aetna International Growth Fund
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the corporation. The report is
not authorized for distribution to prospective investors in the corporation
unless preceded or accompanied by an effective prospectus.
Mutual funds are available through local representatives of
Aetna Investment Services, Inc., 151 Farmington Avenue, Hartford, CT 06156
[recycle logo] printed on recycled paper
SA.AETSER-97A
