[COVER]
Aetna Generation Funds
BUILD FOR
RETIREMENT. MANAGE
FOR LIFE.(SM)
Aetna Mutual Funds
Semi-Annual Report
April 30, 1997
SA.AETGEN-97 [AETNA LOGO]
Retirement Services(R)
<PAGE>
- ------------------------------------------------------------------------------
Table of Contents
- ------------------------------------------------------------------------------
President's Letter..................................... 1
Investment Review...................................... 2
Portfolios of Investments:
Aetna Ascent Fund................................... 7
Aetna Crossroads Fund............................... 17
Aetna Legacy Fund................................... 27
Statements of Assets and Liabilities................... 37
Statements of Operations............................... 38
Statements of Changes in Net Assets.................... 39
Notes to Financial Statements.......................... 42
Financial Highlights................................... 50
<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 Generation Funds Semi-Annual Report 1
<PAGE>
Aetna Ascent Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ---------------------------------------------
1 Year Inception+
- ---------------------------------------------
Select Class 16.95% 20.24%
- ---------------------------------------------
01/95 04/97
Aetna Ascent Fund (Select Class)
10000 10286 11010 11850 12362 12766 13350 14024 14114 15337
Ascent Composite
10000 10517 11172 11765 12233 12575 12984 13319 13459 14241
Aetna Crossroads Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ---------------------------------------------
1 Year Inception+
- ---------------------------------------------
Select Class 14.15% 17.34%
- ---------------------------------------------
01/95 04/97
Aetna Crossroads Fund (Select Class)
10000 10289 10930 11670 12105 12428 12875 13444 13566 14491
Crossroads Composite
10000 10520 11145 11627 12076 12294 12613 12920 13081 13686
2
<PAGE>
Aetna Legacy Fund
Growth of $10,000
Average Annual Total Returns
for the Period Ended April 30, 1997*
- ---------------------------------------------
1 Year Inception+
- ---------------------------------------------
Select Class 10.97% 14.45%
- ---------------------------------------------
01/95 04/97
Aetna Legacy Fund (Select Class)
10000 10303 10870 11489 11889 12102 12471 12863 13019 13678
Legacy Composite
10000 10523 11118 11489 11921 12019 12253 12530 12712 13148
* Total Return is calculated including reinvestment of income and capital gain
distributions. Past performance is no guarantee of future results.
+ Date of inception for the Select Class shares was January 4, 1995. The Funds
commenced offering Adviser Class shares on January 20, 1997. Since audited
financial statements covering a period of at least six months is not available,
performance of this class is not included.
Aetna Generation Funds
How did the Funds perform during the period?
Returns for the six month period ended April 30, 1997 were quite favorable as
each of the three Generation Funds (Ascent, Crossroads and Legacy) Select Class
shares, outperformed its relative benchmark index for the period. These
benchmark indices are unmanaged and are comprised of the seven stock and bond
indices listed below in weights that correspond to the particular benchmark
weights for each Fund.
--------------------------------------------------------
Fund Return Composite Return
--------------------------------------------------------
Ascent 8.67% 5.81%
Crossroads 6.82% 4.62%
Legacy 5.06% 3.43%
Aetna Generations Funds Semi-Annual Report 3
<PAGE>
What economic or financial market conditions impacted the Funds?
Serving as a backdrop for the performance of each of the Generation Funds are
returns for the various indices for each of the asset classes in which the
Generation Funds invest:
- -------------------------------------------------------------------------------
Index
Asset Class Benchmark Index++ Return
- -------------------------------------------------------------------------------
Large Company Stocks S&P 500 14.7%
Small Company Stocks Russell 2000 1.6%
International Stocks MSCI Europe, Australia & Far East 1.7%
Real Estate Stocks NAREIT 13.1%
Domestic Bonds Salomon Broad 1.7%
International Bonds S.B. Non-U.S. WGBI (6.0%)
Cash Equivalents U.S. 90 Day T-Bill 2.6%
++ The S&P 500 (Standard & Poor's 500) Index is a value-weighted, unmanaged
index of 500 widely held stocks that assumes the reinvestment of all dividends,
and is considered to be representative of the stock market in general. 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. 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. The National Association of Real Estate Investment
Trusts (NAREIT) Equity REIT Index is an unmanaged, market-weighted average of
the performance for tax-qualified real estate investment trusts listed on the
New York Stock Exchange, American Stock Exchange, and the NASDAQ National Market
System. Salomon Brothers Broad Investment-Grade Bond Index is an unmanaged,
market-weighted index that contains approximately 4,700 individually priced
investment-grade bonds rated BBB or better. The index Includes U.S.
Treasury/Agency issues, mortgage pass-through securities, and corporate issues.
The Salomon Brothers Non-U.S. World Government Bond Index serves as an unmanaged
benchmark to evaluate the performance of government bonds with a maturity of one
year or greater in the following 12 countries: Japan, United Kingdom, Germany,
France, Canada, the Netherlands, Australia, Denmark, Italy, Belgium, Spain, and
Sweden. Three month Treasury Bills are government-backed short-term investments
considered to be risk-free, and as good as cash because the maturity is only
three months.
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 the last two months of 1996 and the first four months of 1997. This positive
earnings growth has not been as robust for small company stocks as it has been
for large company stocks.
The continued strength of the dollar has had quite an impact on international
investments. We actively hedge out non-dollar exposure to the extent we believe
it is appropriate. Our foreign currency hedges have helped enhance our
international performance a great deal over the past six months.
4
<PAGE>
What investments influenced the Funds' performance over the past six months?
In order to better control risk and pursue enhanced return potential over the
long run, the Generation Funds are designed to invest in a variety of asset
classes with varying degrees of risk. 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 returned only 1.6%
over the period, and international stocks, as represented by the Morgan Stanley
Europe, Australia and Far East (EAFE) Index returned only 1.7%. Keep in mind,
all indices referenced are unmanaged. The Funds' performance numbers were
in-line with their relative benchmarks, although our heavy cash allocation meant
that we were somewhat too conservative in retrospect, as the large company
equity market continued to climb despite its stretched valuation level.
What is your near-term outlook for the markets and how will the Funds'
investment tactics change going forward?
We use forward earnings yield (Earnings per share/Price) of the S&P 500 as our
barometer 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 difference between the S&P 500 forward
earnings yield and the 10 year bond yield remains unusually low, indicating that
stocks are priced higher than usual relative to bonds. Consequently, our cash
target for the funds remains relatively high.
There continues to be a wide split in value between large company and small
company domestic stocks, and we have taken advantage of this recent
underperformance to increase our small and mid-sized company stock exposure, at
the expense of large company stocks. We remain cautious regarding real estate
stocks (REITs) because of their recent run-up in price. We continue to like
selective international markets, but we remain more-or-less hedged (for
potential protection against sudden shifts in values) against the Japanese yen,
German deutschemark, and Dutch guilder.
Aetna Generations Funds Semi-Annual Report 5
<PAGE>
- --------------------------------------------------------------------------------
Asset Allocation Notional
% of Value* Economic Exposure* Allocation Class
Asset Class Portfolio of Futures 04/30/97 10/31/96 Benchmark Range
- --------------------------------------------------------------------------------
Ascent:
Large Cap Stocks 21% (2%) 19% 15% 20% 0-60%
Small Cap Stocks 20% -- 20% 14% 20% 0-40%
Real Estate Stocks 16% -- 16% 16% 20% 0-40%
U.S. Dollar Bonds 11% 3% 14% 10% 10% 0-30%
International Stocks 18% -- 18% 25% 20% 0-40%
International Bonds -- 3% 3% 4% 10% 0-20%
Cash Equivalents 14% (4%) 10% 16% 0% 0-30%
--- ---- ----- ----- ----
Total 100% -- 100% 100% 100%
Crossroads:
Large Cap Stocks 14% (2%) 12% 14% 15% 0-45%
Small Cap Stocks 17% -- 17% 11% 15% 0-30%
Real Estate Stocks 11% -- 11% 13% 15% 0-30%
U.S. Dollar Bonds 21% 5% 26% 19% 25% 0-70%
International Stocks 14% -- 14% 20% 15% 0-30%
International Bonds -- 3% 3% 4% 10% 0-20%
Cash Equivalents 23% (6%) 17% 19% 5% 0-30%
--- ---- ----- ----- ----
Total 100% -- 100% 100% 100%
Legacy:
Large Cap Stocks 9% -- 9% 9% 10% 0-30%
Small Cap Stocks 11% -- 11% 8% 10% 0-20%
Real Estate Stocks 8% -- 8% 8% 10% 0-20%
U.S. Dollar Bonds 34% 6% 40% 30% 40% 0-100%
International Stocks 11% 1% 12% 13% 10% 0-20%
International Bonds -- 3% 3% 4% 10% 0-20%
Cash Equivalents 27% (10%) 17% 28% 10% 0-30%
--- ---- ----- ----- ----
Total 100% -- 100% 100% 100%
* "Notional value" refers to the economic value at risk, or the exposure to the
financial instruments underlying the futures positions. "Economic exposure"
reflects the Funds' exposure to both changes in value of the portfolio of
investments, as well as the financial instruments underlying the futures
positions.
6
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
Ascent
- -------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Common Stocks (74.0%)
United States (56.7%)
Aerospace and Defense (0.2%)
General
Dynamics Corp. 400 $ 28,500
Newport News
Shipbuilding, Inc. 900 13,500
-------
42,000
-------
Apparel (0.7%)
Collins & Aikman
Corp.+ 9,700 92,150
Fruit of the
Loom, Inc.+ 800 28,800
Nike, Inc., Class B 700 39,375
-------
160,325
-------
Autos and Auto Equipment (1.0%)
Chrysler Corp. 3,300 99,000
Phycor, Inc.+ 3,300 87,863
Snap-On, Inc. 900 34,650
-------
221,513
-------
Banks (3.1%)
AmSouth
Bancorporation 400 21,100
Andover Bancorp, Inc. 3,100 84,475
BankAmerica Corp. 600 70,125
BanPonce Corp. 400 13,650
CITICORP 600 67,575
Compass
Bancshares, Inc. 300 9,075
First Chicago Corp. 800 45,000
New York
Bancorp, Inc. 2,900 84,463
North Fork
Bancorp, Inc. 2,400 95,100
Republic New
York Corp. 500 45,813
Silicon Valley
Bancshares+ 700 24,500
Southern
National Corp. 200 7,850
State Street Corp. 300 23,625
Number of Market
Shares Value
---------- -------
Banks (continued)
UnionBancal Corp. 200 $ 11,450
USBANCORP, Inc. 1,900 85,975
Washington
Mutual, Inc. 200 9,875
-------
699,651
-------
Building Materials and Construction (1.5%)
Armstrong World
Industries, Inc. 2,100 138,075
Coachmen
Industries, Inc. 4,500 77,063
Southdown, Inc. 400 14,450
Tredegar
Industries, Inc. 2,000 92,250
USG Corp.+ 300 10,275
-------
332,113
-------
Chemicals (0.3%)
Cytec Industries+ 300 11,288
Fuller (H.B.) Co. 900 48,263
Lyondell
Petrochemical Co. 100 2,025
Sybron Chemicals,
Inc.+ 300 4,913
-------
66,489
-------
Commercial Services (0.1%)
URS Corp.+ 700 7,000
US Filter Corp.+ 200 6,075
-------
13,075
-------
Computer Software (1.3%)
Adobe Systems, Inc. 400 15,650
BMC Software, Inc. 500 21,625
Clarify, Inc.+ 900 7,706
Compuware Corp.+ 600 22,650
Hyperion
Software Corp.+ 4,300 69,875
Microsoft Corp.+ 1,000 121,500
National Data Corp. 600 22,500
-------
281,506
-------
See Notes to Portfolio of Investments.
Aetna Generations Funds Semi-Annual Report 7
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Ascent (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Computers and Office Equipment (2.6%)
Compaq
Computer Corp.+ 1,400 $ 119,525
Dell
Computer Corp.+ 1,200 100,425
Encad, Inc.+ 1,600 58,800
HBO & Co. 600 32,100
Herman Miller, Inc. 600 19,425
Magnetek, Inc.+ 200 3,350
Quantum Corp.+ 400 16,675
Radisys Corp.+ 2,900 85,188
Scopus
Technology, Inc.+ 3,250 86,938
Stratus
Computer, Inc.+ 400 15,550
Western Digital
Corp.+ 900 55,463
-------
593,439
-------
Consumer Products (0.2%)
American Greetings
Corp., Class A 900 28,800
Blyth
Industries, Inc.+ 500 19,750
-------
48,550
-------
Diversified (0.4%)
ITT Industries, Inc. 200 5,050
Ruddick Corp. 1,000 15,000
Textron, Inc. 600 66,825
-------
86,875
-------
Education (0.2%)
ITT Educational
Services, Inc.+ 2,150 48,913
-------
Electrical and Electronics (1.9%)
Dynatech Corp.+ 2,500 86,875
Intel Corp. 1,500 229,687
Seagate
Technology, Inc.+ 2,000 91,750
Siliconix, Inc.+ 400 10,000
Symbol
Technologies, Inc. 100 3,238
-------
421,550
-------
Number of Market
Shares Value
---------- -------
Electrical Equipment (0.3%)
Cellstar Corp.+ 700 $ 16,800
Micron
Electronics, Inc.+ 200 4,075
SCI Systems, Inc.+ 200 12,350
Tektronix, Inc. 700 37,888
-------
71,113
-------
Financial Services (3.4%)
Ahmanson
(H. F.) & Co. 5,200 198,249
Bankers Trust
New York Corp. 300 24,413
Bear Stearns Co., Inc. 712 21,716
BHC Financial, Inc. 3,200 105,200
Donaldson, Lufkin
& Jenrette, Inc. 300 12,938
FIRSTPLUS
Financial Group,
Inc.+ 2,700 59,738
Lehman Brothers
Holdings, Inc. 3,400 115,175
Paine Webber
Group, Inc. 600 20,400
Peoples Heritage
Financial Group 3,100 97,263
Southern Pacific
Funding Corp.+ 6,100 64,813
SunAmerica, Inc. 800 36,800
Trans Financial, Inc. 600 13,950
-------
770,655
-------
Foods and Beverages (1.2%)
Interstate
Bakeries Corp. 200 10,375
Kroger Co. (The)+ 5,600 153,999
Riser Foods, Inc.,
Class A 2,900 100,413
-------
264,787
-------
8 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Health Services (2.6%)
Beverly
Enterprises+ 1,900 $ 27,550
Columbia/HCA
Healthcare Corp. 1,300 45,500
Curative Health
Services, Inc.+ 1,200 28,350
FPA Medical
Management, Inc.+ 5,600 91,000
Invacare Corp. 1,300 25,838
Lincare
Holdings, Inc.+ 700 27,475
Medical Resources,
Inc.+ 8,000 102,000
Oxford Health
Plans, Inc.+ 1,300 85,638
RoTech
Medical Corp.+ 5,200 81,900
Universal Health
Services, Inc.+ 700 26,513
Vencor, Inc.+ 600 24,975
Wellpoint Health
Networks, Inc.+ 300 12,675
-------
579,414
-------
Home Furnishings and Appliances (0.6%)
O'Sullivan Industries
Holdings, Inc.+ 7,300 98,550
Rowe Furniture
Corp 5,600 40,600
-------
139,150
-------
Hotels and Restaurants (0.7%)
Foodmaker, Inc.+ 8,100 88,088
HFS, Inc.+ 600 35,550
Promus Hotel Corp.+ 300 10,575
Red Roof Inns, Inc.+ 800 12,300
-------
146,513
-------
Insurance (0.5%)
Equitable Co., Inc. 1,400 40,950
Kansas City Life
Insurance Co. 400 27,650
Number of Market
Shares Value
---------- -------
Insurance (continued)
Reliance Group
Holdings, Inc. 1,700 $ 18,913
Torchmark Corp. 500 31,063
-------
118,576
-------
Machinery and Equipment (1.4%)
Caterpillar, Inc. 200 17,800
Harnischfeger
Industries, Inc. 1,400 58,275
Parker-Hannifin Corp. 800 39,800
Terex Corp.+ 6,600 98,175
The Manitowoc
Co., Inc. 2,400 97,200
-------
311,250
-------
Media and Entertainment (2.6%)
Callaway Golf Co. 500 14,938
Carmike Cinemas,
Class A+ 3,000 93,000
Cox Radio Inc.,
Class A+ 4,400 89,100
King World
Production, Inc. 900 32,850
Midway Games, Inc.+ 700 12,600
Penske
Motorsports, Inc.+ 2,700 79,313
Regal Cinemas,
Inc.+ 3,400 92,650
Scripps (E.W.) Co. 300 11,400
Walt Disney Co. 2,000 163,999
-------
589,850
-------
Medical Supplies (0.8%)
Hillenbrand
Industries, Inc. 1,200 51,600
US Surgical Corp. 1,000 34,250
Vivus, Inc.+ 2,300 84,956
-------
170,806
-------
Metals and Mining (1.5%)
Alumax, Inc.+ 100 3,650
Phelps Dodge Corp. 700 53,725
Aetna Generation Funds Semi-Annual Report 9
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Ascent (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Metals and Mining (continued)
RMI Titanium Co.+ 4,600 $ 98,325
Timken Co. 3,100 180,187
-------
335,887
-------
Oil and Gas (2.8%)
Apache Corp. 600 20,400
Aquila Gas
Pipeline Corp. 6,800 96,050
Clayton Williams
Energy, Inc.+ 6,800 83,300
Columbia Gas
System, Inc. 2,000 123,750
Global Marine,
Inc.+ 300 6,038
Helmerich &
Payne, Inc. 700 33,425
Kerr-Mcgee Corp. 700 42,263
Occidental
Petroleum Corp. 1,600 35,400
Oryx Energy Co.+ 1,800 36,000
Phillips
Petroleum Co. 1,000 39,375
Tidewater, Inc. 700 28,088
Transocean
Offshore, Inc. 400 24,250
Union Texas
Petroleum
Holdings, Inc. 100 1,888
USX-Marathon Group 1,700 46,963
-------
617,190
-------
Paper and Containers (0.1%)
Fort Howard Corp.+ 400 13,775
-------
Pharmaceuticals (1.3%)
Agouron
Pharmaceuticals,
Inc.+ 100 6,400
Dura
Pharmaceuticals,
Inc.+ 2,600 75,400
Medicis
Pharmaceutical
Corp.+ 3,400 83,300
Number of Market
Shares Value
---------- -------
Pharmaceuticals (continued)
Schering Plough 1,600 $ 128,000
-------
293,100
-------
Printing and Publishing (1.0%)
Big Flower Press
Holdings, Inc.+ 1,300 24,700
Bowne & Co., Inc. 3,200 84,800
Central
Newspapers,
Inc., Class A 400 21,550
Gannett Co., Inc. 500 43,625
Lexmark
International
Group, Inc.+ 700 16,275
New York Times Co. 900 38,925
-------
229,875
-------
Real Estate Investment Trusts (16.0%)
Ambassador
Apartments, Inc. 1,200 29,250
Arden Realty
Group, Inc. 2,200 54,725
Bay Apartment
Communities, Inc. 1,100 36,850
Beacon
Properties Corp. 1,800 55,575
Brandywine Realty
Trust 2,200 41,525
CALI Realty Corp. 5,500 162,249
Camden Property
Trust 200 5,450
Capstone Capital
Trust, Inc. 10,300 231,749
CBL & Associates
Properties, Inc. 6,800 160,649
Colonial
Properties Trust 7,800 221,324
Cornerstone
Properties, Inc. 1,200 17,550
Crescent Real
Estate Equities, Inc. 4,600 120,750
Criimi Mae, Inc. 1,700 26,563
Developers
Diversified
Realty Corp. 2,000 73,750
10 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Real Estate Investment Trusts
(continued)
Equity Residential
Properties Trust 3,200 $ 140,000
Essex Property
Trust, Inc. 9,300 272,024
Evans Withycombe
Residential, Inc. 1,000 19,750
Fairfield
Communities, Inc.+ 3,600 93,600
Glenborough Realty
Trust, Inc. 1,600 31,600
Innkeepers USA
Trust 10,000 140,000
JDN Realty Corp. 5,600 156,799
Kimco Realty Corp. 6,250 194,530
Liberty Property
Trust 900 21,713
Mills Corp. 600 15,075
Oasis
Residential, Inc. 6,900 153,524
Prime Retail, Inc. 9,900 120,038
Public Storage, Inc. 9,400 252,624
Regency
Realty Corp. 4,000 104,000
Smith (Charles E.)
Residential
Realty Co. 2,100 56,963
Sovran Self
Storage, Inc. 8,100 228,824
Spieker
Properties, Inc. 3,400 118,575
United Dominion
Realty Trust, Inc. 2,004 27,555
Walden Residential
Properties, Inc. 9,600 211,199
-------
3,596,352
-------
Retail (4.5%)
Ames Department
Stores, Inc.+ 11,600 81,200
Costco
Companies, Inc.+ 5,100 147,263
Damark
International, Inc.+ 8,800 81,400
Funco, Inc.+ 5,800 100,775
Number of Market
Shares Value
---------- -------
Retail (continued)
Pacific Sunwear of
California+ 2,950 $ 92,188
Ross Stores, Inc. 4,500 126,563
Smith's Food &
Drug Centers,
Inc.+ 2,600 87,100
TJX Companies, Inc. 1,300 61,425
Tuesday Morning
Corp.+ 2,500 70,625
Urban Shopping
Centers, Inc. 2,700 76,275
Williams-Sonoma, Inc.+ 2,900 89,900
-------
1,014,714
-------
Transportation (1.0%)
AMR Corp.+ 300 27,938
CNF
Transportation, Inc. 1,200 35,700
Comair
Holdings, Inc. 300 6,338
Continental
Airlines, Inc.,
Class B+ 400 12,700
Delta Air Lines, Inc. 400 36,850
Trico Marine
Services, Inc.+ 2,200 78,100
UAL Corp.+ 400 29,750
-------
227,376
-------
Utilities - Electric (0.3%)
Entergy Corp. 1,500 35,063
Nevada Power Co. 500 10,000
Ohio Edison Co. 700 14,000
PP&L
Resources, Inc. 200 3,925
-------
62,988
-------
Utilities - Oil and Gas (0.4%)
Energen Corp. 3,100 98,038
-------
Utilities - Telephone (0 2%)
U. S. West
Communications
Group 1,300 45,663
-------
Total United States 12,713,071
-----------
Aetna Generation Funds Semi-Annual Report 11
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Ascent (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Foreign Common Stocks (17.3%)
Australia (0.4%)
Goodman
Fielder Ltd.
(Foods and
Beverages) 30,000 $ 39,394
Reinsurance
Australia Corp.
Ltd. (Insurance) 17,000 52,620
-------
Total Australia 92,014
-------
Austria (0.3%)
VA Technologie AG
(Commercial
Services) + 400 62,132
-------
Belgium (0.3%)
CMB, NPV (Building
Materials and
Construction) + 400 28,667
G.I.B. Holdings
Ltd. (Retail) + 1,100 47,732
-------
Total Belgium 76,399
-------
Brazil (0.4%)
Telecomunicacoes
Brasileiras SA
(Utilities -
Telephone) + 800 91,800
-------
Canada (0.7%)
Anderson
Exploration Ltd.
(Oil and Gas) + 4,000 46,218
Canadian National
Railway
(Transportation) 2,000 77,000
Petro-Canada
(Oil and Gas) 1,600 26,100
-------
Total Canada 149,318
-------
Number of Market
Shares Value
---------- -------
Denmark (0.5%)
ISS International
Service System
AS (Diversified)+ 2,500 $ 73,962
Novo-Nordisk AS
(Pharmaceuticals) 400 39,568
-------
Total Denmark 113,530
-------
Finland (0.4%)
Huhtamaki Group
(Diversified) + 1,100 47,669
The Rauma Group
(Paper and
Containers) 41 843
UPM-Kymmene Corp.
(Paper and
Containers) 1,500 34,303
-------
Total Finland 82,815
-------
France (1.3%)
Alcatel Alsthom
(Utilities -
Telephone) + 400 44,480
Credit Local de
France
(Financial
Services) + 600 55,514
Elf Aquitaine SA
(Oil and Gas) + 300 29,093
Schneider SA
(Machinery and
Equipment) + 800 45,097
Scor SA
(Insurance) + 1,300 50,785
Union des
Assurances
Federales
(Insurance) + 500 59,540
-------
Total France 284,509
-------
Germany (1.1%)
Adidas AG (Retail)+ 400 41,463
12 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Germany (continued)
Deutsche
Pfandbrief &
Hypothekenbank
AG (Banks)+ 500 $ 27,084
Henkel KGAA
(Consumer
Products) 500 27,084
Mannesmann AG
(Machinery and
Equipment) + 100 39,338
Metro AG (Retail) + 300 29,244
Schering AG
(Pharmaceuticals) + 600 57,517
Volkswagen AG
(Autos and Auto
Equipment) + 50 31,704
-------
Total Germany 253,434
-------
Hong Kong (0.3%)
China Overseas
Land &
Investment (Real
Estate
Investment
Trusts) + 60,000 33,886
HSBC Holdings Plc
(Banks) 1,682 42,557
-------
Total Hong Kong 76,443
-------
Ireland (0.3%)
Irish Life Plc
(Insurance) 7,000 31,752
Waterford
Wedgewood Plc
(Home
Furnishings and
Appliances) 24,095 28,952
-------
Total Ireland 60,704
-------
Italy (0.7%)
Credito Italiano
(Banks) + 30,000 42,059
Pirelli & Co.
(Autos and Auto
Equipment) + 34,000 48,263
Number of Market
Shares Value
---------- -------
Italy (continued)
Stet Societa'
Finanziaria
Telefonica
S.p.A
(Telecommunications) + 15,000 $ 70,931
-------
Total Italy 161,253
-------
Japan (2.9%)
Daiichi
Pharmaceutical
(Pharmaceuticals) 5,000 80,372
DDI Corp.
(Utilities - Telephone) 8 53,140
Fuji Photo Film
(Chemicals) + 2,000 76,432
Hitachi Koki
(Electrical
Equipment) 5,000 31,715
Ito-Yokado Co.
Ltd. (Retail) + 1,000 47,987
Matsushita
Electric
Industrial Co.
Ltd. (Electrical
and Electronics) 4,000 63,982
Mitsubishi Heavy
Industries Ltd.
(Aerospace and
Defense) 8,000 52,825
Mizuno Corp.
(Consumer
Products) 5,000 27,224
NTT Data
Communications
Systems Co.
(Computer
Software) 20 58,467
Sony Corp.
(Electrical and
Electronics) 600 43,684
Takara Standard
(Building
Materials and
Construction) 7,000 52,951
West Japan Railway
(Transportation) 20 66,189
-------
Total Japan 654,968
-------
Aetna Generation Funds Semi-Annual Report 13
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Ascent (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Malaysia (0.4%)
Leader Universal
Holdings Bhd
(Diversified) + 20,000 $ 39,841
MBF Capital Bhd
(Financial
Services) + 30,000 44,462
-------
Total Malaysia 84,303
-------
Mexico (0.6%)
ALFA, SA de C.V.
(Diversified) + 8,643 46,679
Panamerican
Beverages, Inc.
(Foods and
Beverages) 2,400 69,600
Tubos de Acero de
Mexico SA
(Metals and
Mining) + 1,800 29,475
-------
Total Mexico 145,754
-------
Netherlands (1.0%)
DSM NV (Chemicals) + 400 39,834
Fortis Amev NV
(Financial
Services) + 1,205 45,463
Getronics NV
(Computers and
Office
Equipment) 1,508 45,671
ING Groep NV
(Banks) + 1,174 46,082
Philips
Electronics NV
(Electrical and
Electronics) 1,100 57,425
-------
Total Netherlands 234,475
-------
Norway (0.7%)
Kvaerner ASA
(Transportation) + 1,000 49,714
Merkantildata ASA
(Computer
Software) + 2,000 36,513
Number of Market
Shares Value
---------- -------
Norway (continued)
SAS Norge ASA B
(Transportation) + 3,000 $ 30,334
Schibsted ASA
(Printing and
Publishing) +,++ 3,000 51,820
-------
Total Norway 168,381
-------
Singapore (0.5%)
Clipsal Industries
Ltd. (Electrical
Equipment) + 13,000 50,960
Development Bank
of Singapore
Ltd. (Banks) + 2,000 23,785
NatSteel Ltd.
(Metals and
Mining) + 10,000 27,103
-------
Total Singapore 101,848
-------
South Korea (0.2%)
Korea Electric
Power Corp.
(Utilities -
Electric) 2,000 34,000
-------
Spain (0.5%)
Cubiertas y Mzov
SA (Building
Materials and
Construction) 700 70,875
Hidroelectrica del
Cantabrico, SA
(Utilities -
Electric) 1,000 34,914
-------
Total Spain 105,789
-------
Sweden (0.8%)
Enator AB
(Commercial
Services) 1,800 36,250
Frontec AB
(Computer
Software) + 3,700 28,296
Skandinaviska
Enskilda Banken
(Banks) 6,000 61,182
14 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Sweden (continued)
Volvo AB (Autos
and Auto
Equipment) 2,000 $ 50,347
-------
Total Sweden 176,075
-------
Switzerland (0.6%)
Georg Fischer AG
(Machinery and
Equipment) 30 36,242
Novartis AG
Registered Shs
(Health
Services 40 52,720
Roche Holding AG
(Pharmaceuticals) + 5 42,248
-------
Total Switzerland 131,210
-------
Taiwan (0.3%)
China Steel Corp.,
ADR (Metals and
Mining)++ 3,000 67,425
-------
United Kingdom (1.9%)
BAA Plc
(Transportation) 4,000 33,198
Bank of Scotland
(Banks) + 6,647 39,906
Barclays Plc
(Financial
Services) 3,000 55,882
Glaxo Wellcome Plc
(Pharmaceuticals) 3,000 59,071
Granada Group Plc
(Diversified) 3,015 43,540
Ladbroke Group Plc
(Media and
Entertainment) 7,817 29,363
National Power Plc
(Utilities -
Electric) 2,600 91,000
Pearson Plc
(Printing and
Publishing) 3,000 34,488
Shell Transport &
Trading Co.
(Oil and Gas) 2,500 44,216
-------
Total United Kingdom 430,664
-------
Number of Market
Shares Value
---------- -------
Venezuela (0.2%)
Compania Anonima
Nacional
Telefonos de
Venezuela
(Utilities -
Telephone) + 1,200 $ 36,000
----------
Total Foreign Common Stocks 3,875,243
----------
Total Common
Stocks (cost $15,059,664) 16,588,314
----------
Principal Market
Amount Value
---------- -------
Long-Term Bonds and Notes (11.3%)
U.S. Government Obligations (8.8%)
U.S. Treasury
Note, 7.50%,
11/15/01 $250,000 258,984
U.S. Treasury
Note, 7.50%,
10/31/99 700,000 717,718
U.S. Treasury
Note, 6.50%,
10/15/06 1,000,000 983,902
----------
Total U.S. Government Obligations
(cost $1,976,652) 1,960,604
----------
Corporate Bonds (2.5%)
Echostar Communications,
2.815%++++, 06/01/04 250,000 204,999
United Mexican
States Government,
7.563%, 08/06/01++ 175,000 177,274
Time Warner,
Inc., 9.125%,
01/15/13 175,000 188,592
----------
Total Corporate Bonds
(cost $577,023) 570,865
----------
Total Long-Term Bonds and Notes
(cost $2,553,675) 2,531,469
----------
Aetna Generation Funds Semi-Annual Report 15
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Ascent (continued)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -------
Short-Term Investments (13.6%)
Alamo Funding LP,
Comm. Paper,
5.65%, 05/01/97++ $856,000 $ 856,000
Dakota
Certificates -
Standard Credit
Card Master Trust, Disc
Note, 5.56%,
05/05/97++ 400,000 399,753
Frontier Corp.,
Comm. Paper,
5.55%, 05/07/97 500,000 499,538
U.S. Treasury
Bill, Time
Deposit, 5.08%,
08/21/97+++ 443,000 435,668
Xerox Corp., Comm
Paper, 5.60%,
05/01/97 855,000 855,000
-----------
Total Short-Term Investments
(cost $3,046,290) 3,045,959
-----------
TOTAL INVESTMENTS
(cost $20,659,629)(a) 22,165,742
Other assets less liabilities 248,898
-----------
-----------
Total Net Assets $22,414,640
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $20,683,801. Unrealized
gains and losses, based on identified tax cost at
April 30, 1997, are as follows:
Unrealized gains ............ $1,536,679
Unrealized losses ........... (54,738)
-----------
Net unrealized gain ......... $1,481,941
===========
+ Non-income producing security.
+++ 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.
Information concerning open futures contracts at April 30, 1997 is shown below:
<TABLE>
<CAPTION>
No. of Initial Expiration Unrealized
Contracts Value Date Gain/(Loss)
--------- ---------- ---------- ----------
Long Contracts
<S> <C> <C> <C> <C>
German Government Bond Future 2 $ 298,164 June 97 $ (188)
Long Gilt Future 2 183,201 June 97 (3,251)
10 Year Swiss Government Bonds Future 3 241,983 June 97 2,565
10 Year US Treasury Note Future 7 763,438 June 97 (14,656)
Short Contracts
S & P 500 Index Future 1 (400,000) June 97 (1,400)
========== ==========
$1,086,786 $ (16,930)
========== ==========
</TABLE>
16 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Common Stocks (54.2%)
United States (40.6%)
Aerospace and Defense (0.1%)
General
Dynamics Corp. 300 $ 21,375
Newport News
Shipbuilding, Inc. 500 7,500
-------
28,875
-------
Apparel (0.2%)
Fruit of the
Loom, Inc.+ 500 18,000
Nike, Inc., Class B 400 22,500
-------
40,500
-------
Autos and Auto Equipment (0.8%)
Chrysler Corp. 1,500 45,000
Excel Industries, Inc. 2,600 46,150
Phycor, Inc.+ 2,200 58,575
Snap-On, Inc. 600 23,100
-------
172,825
-------
Banks (2.0%)
AmSouth
Bancorporation 200 10,550
Andover Bancorp, Inc. 1,900 51,775
BanPonce Corp. 200 6,825
Compass
Bancshares, Inc. 200 6,050
First Chicago Corp. 500 28,125
New York
Bancorp, Inc. 1,700 49,513
North Fork
Bancorp, Inc. 1,700 67,363
Republic New
York Corp. 300 27,488
Silicon Valley
Bancshares+ 1,900 66,500
Southern
National Corp. 100 3,925
Star Banc Corp. 200 8,500
State Street Corp. 200 15,750
UnionBancal Corp. 100 5,725
USBANCORP, Inc. 1,500 67,875
Number of Market
Shares Value
---------- -------
Banks (continued)
Washington Mutual, Inc. 100 $ 4,938
-------
420,902
-------
Building Materials and Construction (0.9%)
Armstrong World
Industries, Inc. 300 19,725
Coachmen
Industries, Inc. 2,800 47,950
Lone Star
Industries, Inc. 1,200 47,400
Southdown, Inc. 200 7,225
Tredegar
Industries, Inc. 1,200 55,350
USG Corp.+ 200 6,850
-------
184,500
-------
Chemicals (0.5%)
Cytec Industries+ 200 7,525
Fuller (H.B.) Co. 700 37,538
Rexene Corp. 3,900 57,525
Sybron Chemicals,
Inc.+ 300 4,913
-------
107,501
-------
Commercial Services (0.3%)
CDI Corp.+ 1,800 68,175
-------
Computer Software (1.2%)
Adobe Systems, Inc. 200 7,825
BMC Software, Inc. 300 12,975
Compuware Corp.+ 200 7,550
Hyperion
Software Corp.+ 2,300 37,375
Keane, Inc.+ 1,600 74,199
McAfee
Associates, Inc.+ 200 11,150
Microsoft Corp.+ 600 72,899
National Data Corp. 700 26,250
-------
250,223
-------
See Notes to Portfolio of Investments.
Aetna Generation Funds Semi-Annual Report 17
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Computers and Office Equipment (1.6%)
Compaq
Computer Corp.+ 900 $ 76,837
Encad, Inc.+ 1,900 69,825
HBO & Co. 300 16,050
Herman Miller, Inc. 400 12,950
Magnetek, Inc.+ 100 1,675
Moore Corp. Ltd. 2,700 54,338
Quantum Corp.+ 200 8,338
Radisys Corp.+ 1,800 52,875
Scopus
Technology, Inc.+ 500 13,375
Stratus
Computer, Inc.+ 200 7,775
Western Digital
Corp.+ 400 24,650
-------
338,688
-------
Consumer Products (0.4%)
Blyth
Industries, Inc.+ 300 11,850
Guilford Mills,
Inc. 2,300 64,975
Procter & Gamble Co. 100 12,575
-------
89,400
-------
Diversified (0.3%)
Aeroquip-Vickers Inc. 600 24,225
Ruddick Corp. 500 7,500
Textron, Inc. 400 44,550
-------
76,275
-------
Electrical and Electronics (1.2%)
Dynatech Corp.+ 1,300 45,175
Intel Corp. 1,000 153,124
Seagate
Technology, Inc.+ 1,400 64,225
Symbol
Technologies, Inc. 150 4,856
-------
267,380
-------
Electrical Equipment (0.5%)
Cellstar Corp.+ 2,900 69,600
Micron
Electronics, Inc.+ 400 8,150
Number of Market
Shares Value
---------- -------
Electrical Equipment (continued)
SCI Systems, Inc.+ 100 $ 6,175
Tektronix, Inc. 400 21,650
-------
105,575
-------
Financial Services (2.7%)
Ahmanson
(H. F.) & Co. 2,900 110,562
Bankers Trust
New York Corp. 300 24,413
Bear Stearns Co., Inc. 381 11,621
BHC Financial, Inc. 1,300 42,738
Donaldson, Lufkin
& Jenrette, Inc. 200 8,625
Edwards (A.G.), Inc. 300 10,500
FIRSTPLUS
Financial Group,
Inc.+ 2,800 61,950
Lehman Brothers
Holdings, Inc. 1,800 60,975
Morgan Stanley
Group, Inc. 400 25,250
Paine Webber
Group, Inc. 300 10,200
Peoples Heritage
Financial Group 2,100 65,888
PHH Corp. 200 9,700
Southern Pacific
Funding Corp.+ 5,300 56,313
SunAmerica, Inc. 100 4,600
Trans Financial, Inc. 3,700 86,024
-------
589,359
-------
Foods and Beverages (0.8%)
Coca-Cola Co. 400 25,450
Interstate
Bakeries Corp. 100 5,188
Kroger Co. (The)+ 3,400 93,499
Riser Foods, Inc.,
Class A 1,700 58,863
-------
183,000
-------
18 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Health Services (1.5%)
Beverly
Enterprises+ 1,100 $ 15,950
Columbia/HCA
Healthcare Corp. 800 28,000
Curative Health
Services, Inc.+ 1,200 28,350
FPA Medical
Management, Inc.+ 3,900 63,375
Invacare Corp. 1,100 21,863
Lincare
Holdings, Inc.+ 300 11,775
Medical Resources,
Inc.+ 5,400 68,850
Oxford Health
Plans, Inc.+ 100 6,588
RoTech
Medical Corp.+ 2,800 44,100
Universal Health
Services, Inc.+ 600 22,725
Vencor, Inc.+ 300 12,488
Wellpoint Health
Networks, Inc.+ 100 4,225
-------
328,289
-------
Home Furnishings and Appliances (0.7%)
Congoleum Corp.+ 1,300 15,275
Ethan Allen
Interiors, Inc. 1,500 66,375
O'Sullivan
Industries
Holdings, Inc.+ 3,900 52,650
Rowe Furniture Corp. 2,900 21,025
-------
155,325
-------
Hotels and Restaurants (0.3%)
Foodmaker, Inc.+ 4,300 46,763
Promus Hotel Corp.+ 200 7,050
-------
53,813
-------
Insurance (0.7%)
Cigna Corp. 400 60,150
Equitable Co., Inc. 800 23,400
Kansas City Life
Insurance Co. 500 34,563
Number of Market
Shares Value
---------- -------
Insurance (continued)
Reliance Group
Holdings, Inc. 1,000 $ 11,125
Torchmark Corp. 300 18,638
-------
147,876
-------
Machinery and Equipment (1.0%)
Ade Corp.+ 600 11,250
Caterpillar, Inc. 100 8,900
Danaher Corp. 300 13,538
Harnischfeger
Industries, Inc. 900 37,463
Parker-Hannifin Corp. 500 24,875
Terex Corp.+ 4,600 68,425
The Manitowoc
Co., Inc. 1,300 52,650
-------
217,101
-------
Media and Entertainment (1.8%)
Callaway Golf Co. 300 8,963
Carmike Cinemas,
Class A+ 2,000 62,000
Cox Radio Inc.,
Class A+ 3,000 60,750
King World
Production, Inc. 700 25,550
Midway Games, Inc.+ 500 9,000
Penske
Motorsports, Inc.+ 2,200 64,625
Regal Cinemas,
Inc.+ 1,900 51,775
Scripps (E.W.) Co. 200 7,600
Walt Disney Co. 1,300 106,599
-------
396,862
-------
Medical Supplies (0.8%)
American Home
Products Corp. 600 39,750
Hillenbrand
Industries, Inc. 1,100 47,300
US Surgical Corp. 600 20,550
Vivus, Inc.+ 1,600 59,100
-------
166,700
-------
Aetna Generation Funds Semi-Annual Report 19
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Metals and Mining (0.9%)
Phelps Dodge Corp. 300 $ 23,025
RMI Titanium Co.+ 2,500 53,438
Timken Co. 1,900 110,437
-------
186,900
-------
Oil and Gas (2.0%)
Apache Corp. 400 13,600
Aquila Gas
Pipeline Corp. 4,100 57,913
Clayton Williams
Energy, Inc.+ 3,700 45,325
Columbia Gas
System, Inc. 1,500 92,812
Global Marine, Inc.+ 200 4,025
Helmerich &
Payne, Inc. 500 23,875
Kerr-Mcgee Corp. 500 30,188
Occidental
Petroleum Corp. 1,000 22,125
Oryx Energy Co.+ 1,100 22,000
Phillips
Petroleum Co. 600 23,625
Tidewater, Inc. 400 16,050
Transocean
Offshore, Inc. 300 18,188
USX-Marathon Group 1,000 27,625
Weatherford
Enterra, Inc.+ 400 12,700
Western Atlas, Inc.+ 400 24,800
-------
434,851
-------
Paper and Containers (0.3%)
Aviall, Inc.+ 4,200 49,875
Fort Howard Corp.+ 200 6,888
-------
56,763
-------
Number of Market
Shares Value
---------- -------
Pharmaceuticals (0.9%)
Agouron
Pharmaceuticals, Inc.+ 100 $ 6,400
Dura
Pharmaceuticals, Inc.+ 1,800 52,200
Medicis
Pharmaceutical Corp.+ 2,350 57,575
Merck & Co., Inc. 400 36,200
Schering Plough 400 32,000
-------
184,375
-------
Printing and Publishing (0.9%)
Big Flower Press
Holdings, Inc.+ 3,100 58,900
Bowne & Co., Inc. 2,100 55,650
Central
Newspapers,
Inc., Class A 200 10,775
Gannett Co., Inc. 300 26,175
Lexmark
International
Group, Inc.+ 400 9,300
New York Times Co. 600 25,950
-------
186,750
-------
Real Estate Investment Trusts (10.9%)
Ambassador
Apartments, Inc. 600 14,625
Arden Realty
Group, Inc. 1,500 37,313
Bay Apartment
Communities, Inc. 700 23,450
Beacon
Properties Corp. 1,400 43,225
Brandywine Realty
Trust 900 16,988
CALI Realty Corp. 700 20,650
Camden Property
Trust 100 2,725
Capstone Capital
Trust, Inc. 6,900 155,249
CBL & Associates
Properties, Inc. 5,900 139,387
20 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Real Estate Investment Trusts (continued)
Colonial
Properties Trust 5,900 $ 167,412
Cornerstone
Properties, Inc. 800 11,700
Crescent Real
Estate Equities, Inc. 2,600 68,250
Criimi Mae, Inc. 1,100 17,188
Developers
Diversified
Realty Corp. 1,700 62,688
Equity Residential
Properties Trust 1,700 74,374
Essex Property
Trust, Inc. 7,300 213,524
Evans Withycombe
Residential, Inc. 700 13,825
Fairfield
Communities, Inc.+ 2,400 62,400
Glenborough Realty
Trust, Inc. 1,000 19,750
Innkeepers USA Trust 6,500 90,999
JDN Realty Corp. 5,700 159,599
Kimco Realty Corp. 4,900 152,512
Liberty Property
Trust 600 14,475
Mid-America
Apartment
Communities, Inc. 200 5,175
Mills Corp. 400 10,050
Oasis
Residential, Inc. 5,900 131,274
Prime Retail, Inc. 5,300 64,263
Public Storage, Inc. 7,000 188,124
Regency
Realty Corp. 2,100 54,600
Smith (Charles E.)
Residential
Realty Co. 1,100 29,838
Sovran Self
Storage, Inc. 2,300 64,975
Spieker
Properties, Inc. 2,700 94,162
United Dominion
Realty Trust, Inc. 1,570 21,588
Number of Market
Shares Value
---------- -------
Real Estate Investment Trusts (continued)
Walden Residential
Properties, Inc. 4,800 $ 105,599
-------
2,351,956
-------
Retail (2.5%)
Ames Department
Stores, Inc.+ 7,500 52,500
Costco
Companies, Inc.+ 3,000 86,624
Damark
International, Inc.+ 5,700 52,725
Dayton Hudson Corp. 400 18,000
Funco, Inc.+ 3,200 55,600
Pacific Sunwear of
California+ 1,750 54,688
Ross Stores, Inc. 2,300 64,688
Smith's Food &
Drug Centers, Inc.+ 1,800 60,300
TJX Companies, Inc. 900 42,525
Wet Seal, Inc.+ 1,700 42,075
-------
529,725
-------
Telecommunications (0.3%)
CommNet
Cellular, Inc.+ 2,300 59,225
MasTec, Inc.+ 200 5,800
-------
65,025
-------
Transportation (0.7%)
AMR Corp.+ 100 9,313
CNF
Transportation, Inc. 700 20,825
Comair
Holdings, Inc. 200 4,225
Continental
Airlines, Inc.,
Class B + 300 9,525
Delta Air Lines, Inc. 300 27,638
Trico Marine
Services, Inc.+ 1,200 42,600
UAL Corp.+ 400 29,750
-------
143,876
-------
Aetna Generation Funds Semi-Annual Report 21
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Utilities - Electric (0.5%)
Entergy Corp. 1,000 $ 23,375
GPU, Inc. 300 9,675
Long Island
Lighting Corp. 300 6,863
Montana Power Co. 200 4,425
Nevada Power Co. 300 6,000
Ohio Edison Co. 400 8,000
PP&L
Resources, Inc. 200 3,925
TNP Enterprises, Inc. 1,700 35,700
-------
97,963
-------
Utilities - Oil and Gas (0.3%)
Energen Corp. 2,200 69,575
-------
Utilities - Telephone (0.1%)
U. S. West
Communications Group 800 28,100
-------
Total United States 8,725,003
-------
Foreign Common Stocks (13.6%)
Australia (0.4%)
Goodman
Fielder Ltd.
(Foods and
Beverages) 25,000 32,829
Reinsurance
Australia Corp.
Ltd. (Insurance) 15,000 46,429
-------
Total Australia 79,258
-------
Austria (0.2%)
VA Technologie AG
(Commercial
Services) + 300 46,599
-------
Belgium (0.2%)
CMB, NPV (Building
Materials and
Construction) + 350 25,084
Number of Market
Shares Value
---------- -------
Belgium (continued)
G.I.B. Holdings
Ltd. (Retail) + 600 $ 26,036
-------
Total Belgium 51,120
-------
Brazil (0.2%)
Telecomunicacoes
Brasileiras SA
(Utilities - Telephone) + 300 34,425
-------
Canada (0.5%)
Anderson
Exploration Ltd.
(Oil and Gas) + 4,000 46,219
Canadian National
Railway
(Transportation) 1,000 38,500
Petro-Canada
(Oil and Gas) 1,400 22,838
-------
Total Canada 107,557
-------
Denmark (0.3%)
ISS International
Service System
AS (Diversified) + 1,300 38,460
Novo-Nordisk AS
(Pharmaceuticals) 300 29,676
-------
Total Denmark 68,136
-------
Finland (0.3%)
Huhtamaki Group
(Diversified) + 900 39,002
The Rauma Group
(Paper and
Containers) 36 740
UPM-Kymmene Corp.
(Paper and
Containers) 1,300 29,729
-------
Total Finland 69,471
-------
France (1.0%)
Alcatel Alsthom
(Utilities - Telephone) + 300 33,360
22 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
France (continued)
Credit Local de
France
(Financial
Services) + 350 $ 32,383
Elf Aquitaine SA
(Oil and Gas) + 200 19,396
Schneider SA
(Machinery and
Equipment) + 600 33,822
Scor SA
(Insurance) + 1,300 50,785
Union des
Assurances
Federales (Insurance) + 450 53,586
-------
Total France 223,332
-------
Germany (1.1%)
Adidas AG (Retail) + 300 31,097
Deutsche
Pfandbrief &
Hypothekenbank
AG (Banks) + 400 21,667
Henkel KGAA
(Consumer
Products) 500 27,084
Mannesmann AG
(Machinery and
Equipment) + 100 39,338
Metro AG (Retail) + 300 29,244
Schering AG
(Pharmaceuticals) + 600 57,517
Volkswagen AG
(Autos and Auto
Equipment) + 50 31,704
-------
Total Germany 237,651
-------
Hong Kong (0.3%)
China Overseas
Land & Investment (Real
Estate Investment Trusts) + 48,000 27,109
HSBC Holdings Plc
(Banks) 1,848 46,758
-------
Total Hong Kong 73,867
-------
Number of Market
Shares Value
---------- -------
Ireland (0.3%)
Irish Life Plc
(Insurance) 7,000 $ 31,752
Waterford
Wedgewood Plc
(Home Furnishings
and Appliances) 18,071 21,714
-------
Total Ireland 53,466
-------
Italy (0.6%)
Credito Italiano
(Banks) + 20,000 28,039
Pirelli & Co.
(Autos and Auto
Equipment) + 27,000 38,326
Stet Societa'
Finanziaria
Telefonica S.p.A.
(Telecommunications) + 15,000 70,931
-------
Total Italy 137,296
-------
Japan (2.2%)
Daiichi Pharmaceutical
(Pharmaceuticals) 3,000 48,223
DDI Corp.
(Utilities - Telephone) 5 33,213
Fuji Photo Film
(Chemicals) + 1,000 38,216
Hitachi Koki
(Electrical
Equipment) 4,000 25,372
Ito-Yokado Co.
Ltd. (Retail) + 1,000 47,987
Matsushita
Electric
Industrial Co.
Ltd. (Electrical
and Electronics) 3,000 47,987
Mitsubishi Heavy
Industries Ltd.
(Aerospace and
Defense) 7,000 46,222
Mizuno Corp.
(Consumer Products) 3,000 16,334
Aetna Generation Funds Semi-Annual Report 23
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Japan (continued)
NTT Data
Communications
Systems Co.
(Computer Software) 10 $ 29,233
Sony Corp.
(Electrical and
Electronics) 500 36,404
Takara Standard
(Building
Materials and
Construction) 6,000 45,386
West Japan Railway
(Transportation) 16 52,951
-------
Total Japan 467,528
-------
Malaysia (0.4%)
Leader Universal
Holdings Bhd
(Diversified) + 20,000 39,841
MBF Capital Bhd
(Financial Services) + 25,000 37,052
-------
Total Malaysia 76,893
-------
Mexico (0.5%)
ALFA, SA de C.V.
(Diversified) + 6,569 35,478
Panamerican
Beverages, Inc.
(Foods and
Beverages) 1,800 52,200
Tubos de Acero de
Mexico SA
(Metals and Mining) + 1,700 27,838
-------
Total Mexico 115,516
-------
Netherlands (0.8%)
DSM NV (Chemicals) + 400 39,834
Fortis Amev NV
(Financial
Services) + 891 33,616
Getronics NV
(Computers and
Office Equipment) 1,005 30,437
ING Groep NV
(Banks) + 914 35,892
Number of Market
Shares Value
---------- -------
Netherlands (continued)
Philips
Electronics NV
(Electrical and
Electronics) 600 $ 31,323
-------
Total Netherlands 171,102
-------
Norway (0.5%)
Kvaerner ASA
(Transportation) + 800 39,771
Merkantildata ASA
(Computer
Software) + 2,000 36,513
SAS Norge ASA B
(Transportation) + 2,500 25,278
-------
Total Norway 101,562
-------
Singapore (0.4%)
Clipsal Industries
Ltd. (Electrical
Equipment) + 10,000 39,200
Development Bank
of Singapore
Ltd. (Banks) + 2,000 23,785
NatSteel Ltd.
(Metals and Mining) + 10,000 27,103
-------
Total Singapore 90,088
-------
South Korea (0.1%)
Korea Electric
Power Corp.
(Utilities - Electric) 1,000 17,000
-------
Spain (0.4%)
Cubiertas y Mzov
SA (Building
Materials and
Construction) 500 50,625
Hidroelectrica del
Cantabrico, SA
(Utilities - Electric) 800 27,931
-------
Total Spain 78,556
-------
24 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Sweden (0.6%)
Enator AB
(Commercial
Services) 1,440 $ 29,000
Frontec AB
(Computer
Software) + 2,800 21,414
Skandinaviska
Enskilda Banken
(Banks) 4,000 40,788
Volvo AB (Autos
and Auto
Equipment) 1,800 45,313
-------
Total Sweden 136,515
-------
Switzerland (0.5%)
Georg Fischer AG
(Machinery and
Equipment) 20 24,161
Novartis AG
Registered Shs
(Health
Services) 30 39,540
Roche Holding AG
(Pharmaceuticals) + 4 33,799
-------
Total Switzerland 97,500
-------
Taiwan (0.3%)
China Steel Corp.,
ADR (Metals and
Mining)++ 3,000 67,425
-------
United Kingdom (1.4%)
Bank of Scotland
(Banks) + 11,131 66,826
Barclays Plc
(Financial
Services 2,000 37,255
Glaxo Wellcome Plc
(Pharmaceuticals) 2,000 39,381
Granada Group Plc
(Diversified) 2,613 37,735
Ladbroke Group Plc
(Media and
Entertainment) 6,380 23,965
National Power Plc
(Utilities - Electric) 1,200 42,000
Pearson Plc
(Printing and
Publishing) 2,000 22,992
Number of Market
Shares Value
---------- -------
United Kingdom (continued)
Shell Transport &
Trading Co.
(Oil and Gas) 2,200 $ 38,910
-------
Total United Kingdom 309,064
-------
Venezuela (0.1%)
Compania Anonima
Nacional
Telefonos de
Venezuela
(Utilities - Telephone) + 900 27,000
-------
Total Foreign Common Stocks 2,937,927
-------
Total Common
Stocks (cost $10,543,410) 11,662,930
-------
Principal Market
Amount Value
---------- -------
Long-Term Bonds and Notes (21.0%)
U.S. Government Obligations (18.0%)
U.S. Treasury
Note, 7.50%,
10/31/99 $1,800,000 1,845,562
U.S. Treasury
Note, 6.50%,
10/15/06 1,850,000 1,820,219
U.S. Treasury
Note, 5.875%,
02/15/00 200,000 197,312
-------
Total U.S. Government
Obligations (cost $3,884,216) 3,863,093
-------
Corporate Bonds (3.0%)
Echostar
Communications,
2.815%++++, 06/01/04 150,000 122,999
Time Warner, Inc.,
9.125%, 01/15/13 250,000 269,418
United Mexican
States Government,
7.563%, 08/06/01++ 250,000 253,249
-------
Total Corporate
Bonds (cost $652,064) 645,666
-------
Total Long-Term Bonds and
Notes (cost $4,536,280) 4,508,759
-------
Aetna Generation Funds Semi-Annual Report 25
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Crossroads (continued)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -------
Short-Term Investments (23.2%)
Alamo Funding LP,
Comm. Paper,
5.65%, 05/01/97++ $ 971,000 $ 971,000
CSW Credit Inc.,
Comm. Paper,
5.65%, 05/14/97 575,000 573,827
Dakota
Certificates -
Standard Credit
Card Master
Trust, Disc.
Note, 5.56%,
05/05/97++ 900,000 899,444
Transamerica
Finance Group,
Comm. Paper,
5.54%, 05/14/97 925,000 923,149
U.S. Treasury
Bill, Time
Deposit, 5.08%,
08/21/97+++ 650,000 639,243
Xerox Corp., Comm.
Paper, 5.60%,
05/01/97 972,000 972,000
-------
Total Short-Term
Investments
(cost $4,979,148) 4,978,663
-------
TOTAL INVESTMENTS
(cost $20,058,838)(a) 21,150,352
Other assets less
liabilities 352,957
-------
-----------
Total Net Assets $21,503,309
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $20,096,597. Unrealized gains
and losses, based on identified tax cost at
April 30, 1997, are as follows:
Unrealized gains ............ $1,112,241
Unrealized losses ........... (58,486)
-----------
Net unrealized gain ......... $1,053,755
===========
+ Non-income producing security.
+++ 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.
Information concerning open futures contracts at April 30, 1997 is shown below:
<TABLE>
<CAPTION>
No. of Initial Expiration Unrealize
Contracts Value Date Gain/(Loss)
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Long Contracts
German Government Bond Future 2 $ 298,164 June 97 $ (188)
Long Gilt Future 2 180,490 June 97 (640)
10 Year Swiss Government Bonds Future 2 161,775 June 97 1,439
10 Year US Treasury Note Future 10 1,090,625 June 97 (20,937)
Short Contracts
S & P 500 Index Future 1 (400,000) June 97 (1,400)
---------- ----------
$1,331,054 $ (21,726)
========== ==========
</TABLE>
26 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Common Stocks (38.5%)
United States (27.5%)
Aerospace and Defense (0.1%)
General
Dynamics Corp. 100 $ 7,125
Newport News
Shipbuilding, Inc. 300 4,500
-------
11,625
-------
Apparel (0.1%)
Fruit of the
Loom, Inc.+ 300 10,800
Nike, Inc., Class B 200 11,250
-------
22,050
-------
Autos and Auto Equipment (0.6%)
Chrysler Corp. 700 21,000
Excel Industries, Inc. 2,200 39,050
Phycor, Inc.+ 1,200 31,950
Snap-On, Inc. 400 15,400
-------
107,400
-------
Banks (1.7%)
AmSouth
Bancorporation 200 10,550
Andover Bancorp, Inc. 1,300 35,425
BankAmerica Corp. 200 23,375
BanPonce Corp. 100 3,413
CITICORP 300 33,788
Compass
Bancshares, Inc. 100 3,025
New York
Bancorp, Inc. 1,300 37,863
North Fork
Bancorp, Inc. 900 35,663
Silicon Valley
Bancshares+ 1,000 35,000
Southern
National Corp. 100 3,925
Star Banc Corp. 100 4,250
State Street Corp. 100 7,875
UnionBancal Corp. 100 5,725
USBANCORP, Inc. 1,000 45,249
Number of Market
Shares Value
---------- -------
Banks (continued)
Washington
Mutual, Inc. 100 $ 4,938
-------
290,064
-------
Building Materials and Construction (0.7%)
Armstrong World
Industries, Inc. 600 39,450
Coachmen
Industries, Inc. 2,000 34,250
Southdown, Inc. 100 3,613
Tredegar
Industries, Inc. 1,000 46,124
USG Corp.+ 100 3,425
-------
126,862
-------
Chemicals (0.1%)
Cytec Industries+ 100 3,763
Fuller (H.B.) Co. 300 16,088
-------
19,851
-------
Commercial Services (0.0%)
US Filter Corp.+ 100 3,038
-------
Computer Software (0.8%)
Adobe Systems, Inc. 100 3,913
BMC Software, Inc. 200 8,650
Clarify, Inc.+ 1,100 9,419
Compuware Corp.+ 200 7,550
Hyperion
Software Corp.+ 2,100 34,125
Keane, Inc.+ 900 41,738
McAfee
Associates, Inc.+ 100 5,575
Microsoft Corp.+ 100 12,150
National Data Corp. 200 7,500
-------
130,620
-------
Computers and Office Equipment (1.4%)
Compaq
Computer Corp.+ 600 51,224
Dell
Computer Corp.+ 500 41,844
See Notes to Portfolio of Investments.
Aetna Generation Funds Semi-Annual Report 27
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Computers and Office Equipment (continued)
Encad, Inc.+ 600 $ 22,050
HBO & Co. 200 10,700
Herman Miller, Inc. 200 6,475
Magnetek, Inc.+ 100 1,675
Moore Corp. Ltd. 600 12,075
Quantum Corp.+ 100 4,169
Radisys Corp.+ 400 11,750
Scopus
Technology, Inc.+ 1,250 33,438
STB Systems, Inc.+ 1,100 27,913
Stratus
Computer, Inc.+ 100 3,888
Western Digital
Corp.+ 300 18,488
-------
245,689
-------
Consumer Products (0.1%)
Blyth Industries, Inc.+ 200 7,900
-------
Diversified (0.2%)
Ruddick Corp. 300 4,500
Textron, Inc. 200 22,275
-------
26,775
-------
Electrical and Electronics (0.7%)
Dynatech Corp.+ 1,000 34,750
Intel Corp. 100 15,313
Seagate
Technology, Inc.+ 800 36,700
Siliconix, Inc.+ 300 7,500
Standard
Microsystems Corp.+ 3,700 31,681
-------
125,944
-------
Electrical Equipment (0.1%)
Micron
Electronics, Inc.+ 100 2,038
SCI Systems, Inc.+ 100 6,175
Tektronix, Inc. 200 10,825
-------
19,038
-------
Number of Market
Shares Value
---------- -------
Financial Services (1.5%)
Ahmanson
(H. F.) & Co. 2,000 $ 76,249
Bear Stearns Co., Inc. 245 7,473
BHC Financial, Inc. 700 23,013
Donaldson, Lufkin
& Jenrette, Inc. 100 4,313
FIRSTPLUS
Financial Group, Inc.+ 1,200 26,550
Lehman Brothers
Holdings, Inc. 1,300 44,038
Paine Webber
Group, Inc. 100 3,400
Peoples Heritage
Financial Group 1,100 34,513
PHH Corp. 200 9,700
Southern Pacific
Funding Corp.+ 1,500 15,938
SunAmerica, Inc. 300 13,800
-------
258,987
-------
Foods and Beverages (0.8%)
Coca-Cola Co. 400 25,450
Interstate
Bakeries Corp. 100 5,188
Kroger Co. (The)+ 1,800 49,499
Riser Foods, Inc.,
Class A 1,400 48,474
-------
128,611
-------
Health Services (1.3%)
Beverly Enterprises+ 600 8,700
Columbia/HCA
Healthcare Corp. 400 14,000
Curative Health
Services, Inc.+ 900 21,263
FPA Medical
Management, Inc.+ 2,000 32,500
Invacare Corp. 1,000 19,875
Lincare Holdings, Inc.+ 100 3,925
28 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Health Services (continued)
Medical
Resources, Inc.+ 2,900 $ 36,975
NovaCare, Inc.+ 400 4,550
Oxford Health
Plans, Inc.+ 100 6,588
RoTech
Medical Corp.+ 2,100 33,075
Universal Health
Services, Inc.+ 800 30,300
Wellpoint Health
Networks, Inc.+ 100 4,225
-------
215,976
-------
Home Furnishings and Appliances (0.5%)
Congoleum Corp.+ 1,100 12,925
Ethan Allen
Interiors, Inc. 300 13,275
O'Sullivan
Industries
Holdings, Inc.+ 3,300 44,549
Stanley Furniture
Co., Inc.+ 900 18,000
-------
88,749
-------
Hotels and Restaurants (0.2%)
Foodmaker, Inc.+ 3,100 33,713
Promus Hotel Corp.+ 100 3,525
-------
37,238
-------
Insurance (0.3%)
Equitable Co., Inc. 500 14,625
Kansas City Life
Insurance Co. 300 20,738
Reliance Group
Holdings, Inc. 600 6,675
Torchmark Corp. 100 6,213
-------
48,251
-------
Machinery and Equipment (0.6%)
Caterpillar, Inc. 100 8,900
Harnischfeger
Industries, Inc. 500 20,813
Terex Corp.+ 2,300 34,213
Number of Market
Shares Value
---------- -------
Machinery and Equipment (continued)
The Manitowoc
Co., Inc. 1,100 $ 44,550
-------
108,476
-------
Media and Entertainment (1.2%)
Callaway Golf Co. 200 5,975
Carmike Cinemas,
Class A+ 1,100 34,100
Cox Radio Inc.,
Class A+ 1,600 32,400
Midway Games, Inc.+ 200 3,600
Penske
Motorsports, Inc.+ 600 17,625
Regal Cinemas, Inc.+ 1,500 40,875
Scripps (E.W.) Co. 100 3,800
Walt Disney Co. 700 57,399
-------
195,774
-------
Medical Supplies (0.5%)
American Home
Products Corp. 300 19,875
Hillenbrand
Industries, Inc. 400 17,200
US Surgical Corp. 400 13,700
Vivus, Inc.+ 800 29,550
-------
80,325
-------
Metals and Mining (0.6%)
Phelps Dodge Corp. 200 15,350
Timken Co. 1,500 87,187
-------
102,537
-------
Oil and Gas (1.2%)
Apache Corp. 200 6,800
Clayton Williams
Energy, Inc.+ 2,800 34,300
Columbia Gas
System, Inc. 400 24,750
Global Marine, Inc.+ 100 2,013
Helmerich &
Payne, Inc. 300 14,325
Aetna Generation Funds Semi-Annual Report 29
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Oil and Gas (continued)
Kerr-Mcgee Corp. 300 $ 18,113
Occidental
Petroleum Corp. 600 13,275
Oryx Energy Co.+ 600 12,000
Phillips Petroleum Co. 1,100 43,313
Tidewater, Inc. 300 12,038
Transocean
Offshore, Inc. 200 12,125
USX-Marathon Group 700 19,338
-------
212,390
-------
Paper and Containers (0.0%)
Fort Howard Corp.+ 100 3,444
-------
Pharmaceuticals (0.4%)
Dura
Pharmaceuticals,
Inc.+ 1,000 29,000
Medicis
Pharmaceutical
Corp.+ 1,300 31,850
-------
60,850
-------
Printing and Publishing (0.7%)
Bowne & Co., Inc. 1,200 31,800
Central
Newspapers,
Inc., Class A 200 10,775
Gannett Co., Inc. 200 17,450
Lexmark
International
Group, Inc.+ 200 4,650
McClatchy
Newspapers, Inc. 1,425 35,803
New York Times Co. 300 12,975
-------
113,453
-------
Real Estate Investment Trusts (8.1%)
Ambassador
Apartments, Inc. 300 7,313
Arden Realty
Group, Inc. 1,000 24,875
Number of Market
Shares Value
---------- -------
Real Estate Investment Trusts (continued)
Bay Apartment
Communities, Inc. 400 $ 13,400
Beacon Properties Corp. 700 21,613
Brandywine Realty
Trust 1,000 18,875
CALI Realty Corp. 600 17,700
Camden Property
Trust 100 2,725
Capstone Capital
Trust, Inc. 4,300 96,749
Colonial
Properties Trust 4,200 119,174
Cornerstone
Properties, Inc. 500 7,313
Criimi Mae, Inc. 600 9,375
Developers
Diversified
Realty Corp. 1,200 44,250
Equity Residential
Properties Trust 300 13,125
Essex Property
Trust, Inc. 5,100 149,174
Evans Withycombe
Residential, Inc. 300 5,925
Fairfield
Communities, Inc.+ 1,100 28,600
Glenborough Realty
Trust, Inc. 600 11,850
Innkeepers USA
Trust 4,900 68,599
JDN Realty Corp. 4,800 134,399
Kimco Realty Corp. 3,450 107,380
Liberty Property
Trust 300 7,238
MGI Properties, Inc. 3,900 80,924
Mills Corp. 200 5,025
Oasis
Residential, Inc. 4,200 93,449
Prime Retail, Inc. 3,300 40,013
Public Storage, Inc. 4,600 123,624
Regency Realty Corp. 1,400 36,400
Smith (Charles E.)
Residential
Realty Co. 600 16,275
30 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
United States (continued)
Real Estate Investment Trusts (continued)
Spieker
Properties, Inc. 2,200 $ 76,724
United Dominion
Realty Trust, Inc. 677 9,309
-------
1,391,395
-------
Retail (1.9%)
Ames Department
Stores, Inc.+ 4,300 30,100
Costco
Companies, Inc.+ 1,900 54,862
Damark
International, Inc.+ 3,700 34,225
Funco, Inc.+ 2,500 43,438
Pacific Sunwear of
California+ 1,150 35,938
Ross Stores, Inc. 1,700 47,812
Smith's Food &
Drug Centers, Inc.+ 900 30,150
TJX Companies, Inc. 500 23,625
Wet Seal, Inc.+ 1,300 32,175
-------
332,325
-------
Telecommunications (0.1%)
MasTec, Inc.+
700 20,300
-------
Transportation (0.4%)
AMR Corp.+ 100 9,313
CNF
Transportation, Inc. 400 11,900
Comair Holdings, Inc. 100 2,113
Continental
Airlines, Inc.,
Class B+ 200 6,350
Delta Air Lines, Inc. 200 18,425
Trico Marine
Services, Inc.+ 500 17,750
UAL Corp.+ 100 7,438
-------
73,289
-------
Utilities - Electric (0.3%)
Entergy Corp. 500 11,688
Nevada Power Co. 100 2,000
Number of Market
Shares Value
---------- -------
Utilities - Electric (continued)
Ohio Edison Co. 200 $ 4,000
PP&L Resources, Inc. 100 1,963
TNP Enterprises, Inc. 1,400 29,400
-------
49,051
-------
Utilities - Oil and Gas (0.2%)
Energen Corp. 1,200 37,950
-------
Utilities - Telephone (0.1%)
U. S. West
Communications Group 500 17,563
-------
Total United States 4,713,790
-------
Foreign Common Stocks (11.0%)
Australia (0.4%)
Goodman Fielder Ltd.
(Foods and Beverages) 20,000 26,263
Reinsurance
Australia Corp.
Ltd. (Insurance) 14,000 43,334
-------
Total Australia 69,597
-------
Austria (0.2%)
VA Technologie AG
(Commercial Services) + 200 31,066
-------
Belgium (0.2%)
CMB, NPV (Building
Materials and
Construction) + 300 21,501
G.I.B. Holdings
Ltd. (Retail) + 400 17,357
-------
Total Belgium 38,858
-------
Brazil (0.1%)
Telecomunicacoes
Brasileiras SA
(Utilities - Telephone) + 200 22,950
-------
Aetna Generation Funds Semi-Annual Report 31
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Canada (0.2%)
Canadian National
Railway (Transportation) 500 $ 19,250
Petro-Canada
(Oil and Gas) 800 13,050
-------
Total Canada 32,300
-------
Denmark (0.2%)
ISS International
Service System
AS (Diversified) + 600 17,751
Novo-Nordisk AS
(Pharmaceuticals) 200 19,784
-------
Total Denmark 37,535
-------
Finland (0.2%)
The Rauma Group
(Paper and
Containers) 27 555
UPM-Kymmene Corp.
(Paper and Containers) 1,000 22,869
-------
Total Finland 23,424
-------
France (1.0%)
Alcatel Alsthom
(Utilities - Telephone) + 200 22,240
Credit Local de France
(Financial Services) + 300 27,757
Elf Aquitaine SA
(Oil and Gas) + 300 29,093
Schneider SA
(Machinery and
Equipment) + 500 28,185
Scor SA (Insurance) + 800 31,252
Union des Assurances
Federales (Insurance) + 300 35,724
-------
Total France 174,251
-------
Number of Market
Shares Value
---------- -------
Germany (1.2%)
Adidas AG (Retail) + 300 $ 31,097
Deutsche
Pfandbrief &
Hypothekenbank
AG (Banks) + 300 16,250
GEA AG (Machinery
and Equipment) + 50 17,613
Henkel KGAA
(Consumer Products) 500 27,084
Mannesmann AG
(Machinery and
Equipment) + 100 39,338
Metro AG (Retail) + 300 29,244
Schering AG
(Pharmaceuticals) + 200 19,172
Volkswagen AG
(Autos and Auto
Equipment) + 50 31,704
-------
Total Germany 211,502
-------
Hong Kong (0.3%)
China Overseas
Land & Investment (Real
Estate Investment
Trusts) + 35,000 19,767
HSBC Holdings Plc
(Banks) 1,336 33,803
-------
Total Hong Kong 53,570
-------
Ireland (0.3%)
Irish Life Plc
(Insurance) 5,000 22,680
Waterford
Wedgewood Plc
(Home Furnishings and
Appliances) 15,059 18,095
-------
Total Ireland 40,775
-------
Italy (0.4%)
Credito Italiano
(Banks) + 15,000 21,030
Pirelli & Co.
(Autos and Auto
Equipment) + 20,000 28,390
32 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
Italy (continued)
Stet Societa' Finanziaria
Telefonica S.p.A
(Telecommunications) + 5,000 $ 23,644
-------
Total Italy 73,064
-------
Japan (1.4%)
Daiichi Pharmaceutical
(Pharmaceuticals) 2,000 32,149
DDI Corp.
(Utilities - Telephone) 4 26,570
Hitachi Koki
(Electrical Equipment) 3,000 19,029
Matsushita
Electric
Industrial Co.
Ltd. (Electrical
and Electronics) 2,000 31,991
Mitsubishi Heavy
Industries Ltd.
(Aerospace and
Defense) 3,000 19,809
Mizuno Corp.
(Consumer Products) 2,000 10,890
NTT Data
Communications
Systems Co.
(Computer Software) 10 29,233
Sony Corp.
(Electrical and
Electronics) 300 21,842
Takara Standard
(Building
Materials and
Construction) 2,000 15,129
West Japan Railway
(Transportation) 10 33,094
-------
Total Japan 239,736
-------
Malaysia (0.4%)
Leader Universal
Holdings Bhd
(Diversified) + 20,000 39,841
MBF Capital Bhd
(Financial
Services) + 15,000 22,231
-------
Total Malaysia 62,072
-------
Number of Market
Shares Value
---------- -------
Mexico (0.4%)
ALFA, SA de C.V.
(Diversified) + 5,186 $ 28,008
Panamerican
Beverages, Inc.
(Foods and
Beverages) 1,400 40,600
-------
Total Mexico 68,608
-------
Netherlands (0.8%)
DSM NV (Chemicals) + 300 29,875
Fortis Amev NV
(Financial Services) + 891 33,616
Getronics NV
(Computers and
Office Equipment) 1,005 30,437
ING Groep NV
(Banks) + 514 20,184
Philips
Electronics NV
(Electrical and
Electronics) 500 26,102
-------
Total Netherlands 140,214
-------
Norway (0.6%)
Den Norske
Bank ASA (Banks) ++ 6,000 21,655
Kvaerner ASA
(Transportation) + 600 29,828
Merkantildata ASA
(Computer
Software) + 1,200 21,908
SAS Norge ASA B
(Transportation) + 2,000 20,222
-------
Total Norway 93,613
-------
Singapore (0.4%)
Clipsal Industries
Ltd. (Electrical
Equipment) + 7,000 27,440
Development Bank
of Singapore
Ltd. (Banks) + 2,000 23,785
NatSteel Ltd.
(Metals and
Mining) + 8,000 21,683
-------
Total Singapore 72,908
-------
Aetna Generation Funds Semi-Annual Report 33
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy (continued)
- --------------------------------------------------------------------------------
Number of Market
Shares Value
---------- -------
South Korea (0.1%)
Korea Electric
Power Corp.
(Utilities - Electric) 900 $ 15,300
-------
Spain (0.2%)
Cubiertas y Mzov
SA (Building
Materials and
Construction) 150 15,187
Hidroelectrica del
Cantabrico, SA
(Utilities - Electric) 600 20,948
-------
Total Spain 36,135
-------
Sweden (0.6%)
Enator AB
(Commercial Services) 1,200 24,167
Frontec AB
(Computer Software) 2,000 15,295
Skandinaviska
Enskilda Banken
(Banks) 2,000 20,394
Volvo AB(Autos
and Auto
Equipment) 1,600 40,278
-------
Total Sweden 100,134
-------
Switzerland (0.3%)
Novartis AG
Registered Shs
(Health Services) 20 26,360
Roche Holding AG
(Pharmaceuticals) + 3 25,349
-------
Total Switzerland 51,709
-------
United Kingdom (1.0%)
Bank of Scotland
(Banks) + 6,822 40,957
Granada Group Plc
(Diversified) 2,010 29,027
Ladbroke Group Plc
(Media and
Entertainment) 6,965 26,163
National Power Plc
(Utilities - Electric) 800 28,000
Number of Market
Shares Value
---------- -------
United Kingdom (continued)
Pearson Plc
(Printing and
Publishing) 1,500 $ 17,244
Shell Transport &
Trading Co.
(Oil and Gas) 1,800 31,835
-------
Total United Kingdom 173,226
-------
Venezuela (0.1%)
Compania Anonima
Nacional
Telefonos de
Venezuela
(Utilities - Telephone) + 700 21,000
-------
Total Foreign Common Stocks 1,883,547
-------
Total Common
Stocks (cost $5,914,441) 6,597,337
-------
Principal Market
Amount Value
---------- -------
Long-Term Bonds and Notes (33.3%)
U.S. Government Obligations (29.0%)
U.S. Treasury
Note, 5.875%, 02/15/00 $ 150,000 147,983
U.S. Treasury
Note, 7.50%, 10/31/99 2,600,000 2,665,813
U.S. Treasury
Note, 6.50%, 10/15/06 2,200,000 2,164,585
-------
Total U.S. Government
Obligations (cost $5,018,070) 4,978,381
-------
Corporate Bonds (4.3%)
United Mexican States
Government,
7.563%, 08/06/01++ 350,000 354,549
Time Warner, Inc.,
9.125%, 01/15/13 350,000 377,185
-------
Total Corporate
Bonds (cost $738,259) 731,734
-------
Total Long-Term Bonds and
Notes (cost $5,756,329) 5,710,115
-------
34 See Notes to Portfolio of Investments.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Market
Amount Value
---------- -------
Short-Term Investments (26.6%)
Alamo Funding LP,
Comm. Paper,
5.65%, 05/01/97++ $ 600,000 $ 600,000
Dakota
Certificates -
Standard Credit
Card Master
Trust , Disc
Note, 5.56%,
05/05/97++ 800,000 799,506
GE Capital Corp.,
Comm. Paper,
5.50%, 05/06/97 700,000 699,465
Pactel Capital
Resources, Comm
Paper, 5.60%,
05/01/97 550,000 550,000
Transamerica
Finance Group,
Comm. Paper,
5.54%, 05/14/97 825,000 823,350
U.S. Treasury
Bill, Time
Deposit, 5.08%, 550,000 540,898
08/21/97+++
Xerox Corp., Comm
Paper, 5.60%,
05/01/97 551,000 551,000
-------
Total Short-Term
Investments (cost $4,564,629) 4,564,219
-------
TOTAL INVESTMENTS
(cost $16,235,399)(a) 16,871,671
Other assets less
liabilities 266,485
-------
-----------
Total Net Assets $17,138,156
-----------
Notes to Portfolio of Investments
(a) The cost of investments for federal income tax
purposes amount to $16,247,576. Unrealized
gains and losses, based on identified tax cost at
April 30, 1997, are as follows:
Unrealized gains ............ $ 694,186
Unrealized losses ........... (70,091)
===========
Net unrealized gain ......... $ 624,095
===========
+ Non-income producing security.
+++ Security pledged to cover initial margin
requirements on open futures contracts at
April 30, 1997.
++ Restricted security.
Category percentages are based on net assets.
See Notes to Financial Statements.
Aetna Generation Funds Semi-Annual Report 35
<PAGE>
Portfolio of Investments
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Legacy (continued)
- --------------------------------------------------------------------------------
Information concerning open futures contracts at April 30, 1997 is shown below:
<TABLE>
<CAPTION>
No. of Initial Expiration Unrealized
Contracts Value Date Gain/(Loss)
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Long Contracts
German Government Bond Future 2 $ 298,164 June 97 $ (188)
CAC 40 Index Future 1 90,168 June 97 994
Long Gilt Future 1 91,601 June 97 (1,626)
Topix Index Future 1 111,869 June 97 4,964
10 Year Swiss Government Bonds Future 1 81,567 June 97 312
10 Year US Treasury Note Future 10 1,090,625 June 97 (20,937)
---------- -----------
$1,763,994 $(16,481)
========== ===========
</TABLE>
36 See Notes to Financial Statements.
<PAGE>
Statements of Assets and Liabilities
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------ ---------- ----------- -----------
Aetna Generation Funds Ascent Crossroads Legacy
- ------------------------------ ---------- ----------- -----------
<S> <C> <C> <C>
Assets:
Investments, at market value .. $22,165,742 $21,150,352 $16,871,671
Cash .......................... 27,862 68,437 98,670
Cash denominated in foreign
currencies .................. 488,409 400,285 336,376
Receivable for:
Dividends and interest ...... 52,629 39,237 37,638
Investments sold ............ 171,311 169,239 64,018
Fund shares sold ............ 20,107 14,527 1,361
Recoverable taxes ........... 1,790 1,453 1,108
Variation margin ............ 3,737 4,696 9,676
Prepaid expenses .............. 280 264 272
Gross unrealized gain on
forward foreign currency
exchange contracts .......... 43,479 31,659 21,859
----------- ----------- -----------
Total assets ............ 22,975,346 21,880,149 17,442,649
----------- ----------- -----------
Liabilities:
Payable for:
Investments purchased ....... 415,830 330,357 216,468
Fund shares redeemed ........ 92,000 -- 50,000
Other liabilities ........... 38,138 36,014 31,500
Gross unrealized loss on
forward foreign currency
exchange contracts .......... 14,738 10,469 6,525
----------- ----------- -----------
Total liabilities ....... 560,706 376,840 304,493
----------- ----------- -----------
NET ASSETS .................... $22,414,640 $21,503,309 $17,138,156
=========== =========== ===========
Net Assets represented by:
Paid-in capital ............... $17,045,815 $17,753,255 $14,627,482
Net unrealized gain on
investments ................. 1,513,264 1,085,339 631,553
Undistributed net investment
income ...................... 76,688 98,596 123,682
Accumulated net realized gain
on investments .............. 3,778,873 2,566,119 1,755,439
----------- ----------- -----------
NET ASSETS .................... $22,414,640 $21,503,309 $17,138,156
=========== =========== ===========
Capital Shares, $.001 par value:
Select Class:
Outstanding: ................ 1,786,447 1,838,445 1,544,045
Net Assets .................. $22,214,356 $21,461,520 $17,000,468
Net Asset Value per share* .. $ 12.43 $ 11.67 $ 11.01
Adviser Class:
Outstanding: ................ 16,125 3,587 12,527
Net Assets .................. $ 200,284 $ 41,789 $ 137,688
Net Asset Value per share* .. $ 12.42 $ 11.65 $ 10.99
Cost of investments ........... $20,659,629 $20,058,838 $16,235,399
Cost of cash denominated in
foreign currencies .......... $ 494,444 $ 406,963 $ 340,798
</TABLE>
* Net assets divided by shares outstanding.
See Notes to Financial Statements.
Aetna Generation Funds Semi-Annual Report 37
<PAGE>
Statements of Operations
Six month period ended April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------ ---------- ----------- -----------
Aetna Generation Funds Ascent Crossroads Legacy
- ------------------------------ ---------- ----------- -----------
<S> <C> <C> <C>
Investment Income:
Dividends ....................... $ 242,453 $ 169,455 $ 104,069
Interest ........................ 99,015 191,333 289,767
----------- ----------- ----------
341,468 360,788 393,836
Foreign taxes withheld .......... (4,395) (3,644) (2,244)
----------- ----------- ----------
Total investment income ....... 337,073 357,144 391,592
----------- ----------- ----------
Investment Expenses:
Investment advisory fee ......... 93,823 81,517 74,956
Administrative service fees ..... 29,320 25,474 23,424
12b-1 and shareholder service
fees ........................... 180 27 125
Printing and postage ............ 8,751 8,516 8,456
Custody fees .................... 19,252 18,522 17,967
Transfer agent fees ............. 7,906 7,157 7,156
Audit fees ...................... 8,915 8,844 8,821
Directors' fees ................. 635 542 285
State and federal fees .......... 19,555 19,618 19,694
Miscellaneous ................... 740 717 729
----------- ----------- ----------
Total investment expenses ..... 189,077 170,934 161,613
----------- ----------- ----------
Net investment income ........... 147,996 186,210 229,979
----------- ----------- ----------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Sale of investments ........... 3,755,889 2,545,833 1,688,861
Futures and forward currency
exchange contracts .......... (6,744) 33,717 121,762
Foreign currency related
transactions ................ (37,687) (30,151) (19,009)
----------- ----------- ----------
Net realized gain on
investments ............... 3,711,458 2,549,399 1,791,614
----------- ----------- ----------
Net change in unrealized gain or loss on:
Investments ................... (1,709,178) (1,210,431) (875,247)
Futures and forward currency
exchange contracts .......... 16,800 (18,801) (65,290)
Foreign currency related
transactions ................ (4,786) (6,318) (3,757)
----------- ----------- ----------
Net change in unrealized
gain or loss on
investments ............... (1,697,164) (1,235,550) (944,294)
----------- ----------- ----------
Net realized and change in
unrealized gain................ 2,014,294 1,313,849 847,320
----------- ----------- ----------
Increase in net assets resulting
from operations ............... $2,162,290 $1,500,059 $1,077,299
=========== =========== ==========
</TABLE>
38 See Notes to Financial Statements.
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- ---------------------------------------------- --------------------------------
Aetna Generation Funds Ascent
- ---------------------------------------------- --------------------------------
Six month
period ended
April 30, 1977 Year ended
(Unaudited) October 31, 1996
------------ ----------------
<S> <C> <C>
From Operations:
Net investment income ........................... $ 147,996 $ 392,451
Net realized gain on investments ................ 3,711,458 2,176,624
Net change in unrealized gain or loss on
investments ................................... (1,697,164) 1,796,792
------------ -----------
Increase in net assets resulting from operations 2,162,290 4,365,867
------------ -----------
Distributions to Shareholders:
Select Class:
From net investment income .................... (509,408) (677,906)
From realized gain on investments ............. (1,991,320) (1,734,904)
------------ -----------
Decrease in net assets from distributions to
shareholders .................................. (2,500,728) (2,412,810)
------------ -----------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................... 14,507,802 5,899,488
Reinvestment of distributions ................. 797,267 2,412,810
Cost of shares redeemed ....................... (18,505,788) (4,946,576)
Adviser Class:
Proceeds from shares sold ..................... 202,076 --
------------ -----------
Net increase (decrease) in net assets from fund
share transactions ............................ (2,998,643) 3,365,722
------------ -----------
Change in net assets ............................ (3,337,081) 5,318,779
------------ -----------
Net Assets:
Beginning of period ............................. 25,751,721 20,432,942
------------ -----------
End of period ................................... $22,414,640 $25,751,721
============ ===========
End of period net assets includes undistributed
net investment income ......................... $ 76,688 $ 438,100
============ ===========
</TABLE>
See Notes to Financial Statements.
Aetna Generation Funds Semi-Annual Report 39
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- ---------------------------------------------- --------------------------------
Aetna Generation Funds Crossroads
- ---------------------------------------------- --------------------------------
Six month
period ended
April 30, 1977 Year ended
(Unaudited) October 31, 1996
------------ ----------------
<S> <C> <C>
From Operations:
Net investment income ........................... $ 186,210 $ 483,217
Net realized gain on investments ................ 2,549,399 2,017,164
Net change in unrealized gain on investments .... (1,235,550) 1,046,520
------------ -----------
Increase in net assets resulting from operations 1,500,059 3,546,901
------------ -----------
Distributions to Shareholders:
Select Class:
From net investment income .................... (569,299) (778,690)
From realized gain or loss on investments ..... (1,905,254) (1,467,875)
------------ -----------
Decrease in net assets from distributions to
shareholders .................................. (2,474,553) (2,246,565)
------------ -----------
Fund Share Transactions:
Select Class ....................................
Proceeds from shares sold ..................... 14,386,132 7,177,613
Reinvestment of distributions ................. 984,645 2,246,565
Cost of shares redeemed ....................... (15,881,745) (8,147,413)
Adviser Class ...................................
Proceeds from shares sold ..................... 41,742 --
------------ -----------
Net increase (decrease) in net assets from fund
share transactions ............................ (469,226) 1,276,765
------------ -----------
Change in net assets ............................ (1,443,720) 2,577,101
------------ -----------
Net Assets:
Beginning of period ............................. 22,947,029 20,369,928
------------ -----------
End of period ................................... $21,503,309 $22,947,029
============ ===========
End of period net assets includes undistributed
net investment income ......................... $ 98,596 $ 481,685
============ ===========
</TABLE>
40 See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------- --------------------------------
Aetna Generation Funds Legacy
- ---------------------------------------------- --------------------------------
Six month
period ended
April 30, 1977 Year ended
(Unaudited) October 31, 1996
------------ ----------------
<S> <C> <C>
From Operations:
Net investment income ........................... $ 229,979 $ 556,855
Net realized gain on investments ................ 1,791,614 1,742,131
Net change in unrealized gain or loss on
investments ................................... (944,294) 499,927
------------ -----------
Increase in net assets resulting from operations 1,077,299 2,798,913
------------ -----------
Distributions to Shareholders:
Select Class:
From net investment income .................... (623,441) (871,124)
From realized gain on investments ............. (1,697,678) (1,324,109)
------------ -----------
Decrease in net assets from distributions to
shareholders .................................. (2,321,119) (2,195,233)
------------ -----------
Fund Share Transactions:
Select Class:
Proceeds from shares sold ..................... 11,831,372 4,634,832
Reinvestment of distributions ................. 600,390 2,195,233
Cost of shares redeemed ....................... (16,513,105) (4,758,475)
Adviser Class:
Proceeds from shares sold ..................... 137,513 --
------------ -----------
Net increase (decrease) in net assets from fund
share transactions ............................ (3,943,830) 2,071,590
------------ -----------
Change in net assets ............................ (5,187,650) 2,675,270
------------ -----------
Net Assets:
Beginning of period ............................. 22,325,806 19,650,536
------------ -----------
End of period ................................... $17,138,156 $22,325,806
============ ===========
End of period net assets includes undistributed
net investment income ......................... $ 123,682 $ 517,144
============ ===========
</TABLE>
See Notes to Financial Statements.
Aetna Generation Funds Semi-Annual Report 41
<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.
The Funds are authorized to offer two classes of shares, the Select Class and
the Adviser Class. The Select Class is offered principally to institutions and
is 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 years 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 January 20, 1997.
The Company offers the following Funds described in this report:
Aetna Ascent Fund (Ascent) seeks to provide capital appreciation.
Aetna Crossroads Fund (Crossroads) seeks to provide total return (i.e., income
and capital appreciation, both realized and unrealized).
Aetna Legacy Fund (Legacy) seeks to provide total return consistent with
preservation of capital.
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 subadvisor 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
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 for which market quotations are readily available 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 value. 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.
42
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
A. Valuation of Investments (continued)
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. 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 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 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. 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
income tax purposes, any futures contracts and forward foreign currency exchange
contracts which remain open at year end are marked-to-market and the resultant
net gain or loss is included in federal taxable income.
Aetna Generation Funds Semi-Annual Report 43
<PAGE>
- --------------------------------------------------------------------------------
1. Summary of Significant Accounting Policies (continued)
- --------------------------------------------------------------------------------
C. 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% 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.
D. 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.
E. 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.
F. 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.
- --------------------------------------------------------------------------------
2. Investment Advisory, Management, Shareholder Service and Distribution Fees
- --------------------------------------------------------------------------------
Each Fund pays the Investment Adviser a monthly fee at an annual rate of 0.80%
of its average daily net assets. As each Fund's net assets exceed predetermined
thresholds, lower advisory fees are applied.
44
<PAGE>
- --------------------------------------------------------------------------------
2. Investment Advisory, Management, Shareholder Service and Distribution Fees
(continued)
- --------------------------------------------------------------------------------
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, payable by Aetna, of up to 0.50% of each Funds' average daily
net assets. For the period ended April 30, 1997, Aetna paid Aeltus $156,867 in
accordance with the terms of the agreement.
The Company has entered into an administrative services agreement under which
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 of 0.25% of its
average daily net assets. As each Fund's net assets exceed predetermined
thresholds, lower advisory fees apply.
The Funds have adopted a Shareholder Services Plan for the Adviser Class Shares.
Under the Shareholder Services Plan, Aetna is paid a service fee at an annual
rate of 0.25% of its average daily net assets of the Adviser Class of each Fund.
This fee is used as compensation for expenses incurred in servicing shareholders
accounts. For the period ended April 30, 1997, the Funds paid Aetna $111 in
service fees.
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. 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 $221 in Rule 12b-1 fees. The
plan may be terminated upon a majority vote of the Fund's independent directors.
Presently, the Funds' class-specific expenses are limited to Shareholder
Services and Distribution Plan expenses incurred by the Adviser Class shares.
- --------------------------------------------------------------------------------
3. Purchases and Sales of Investment Securities
- --------------------------------------------------------------------------------
Purchases and sales of investment securities, excluding short-term investments,
for the period ended April 30, 1997 were:
Cost of Proceeds
Purchases from Sales
------------- ---------------
Ascent $18,448,848 $26,150,583
Crossroads 15,018,346 18,516,497
Legacy 12,044,768 12,624,688
Aetna Generation Funds Semi-Annual Report 45
<PAGE>
- --------------------------------------------------------------------------------
4. Forward Foreign Currency Exchange Contracts
- --------------------------------------------------------------------------------
At April 30, 1997, Ascent, Crossroads, and Legacy 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 $28,741,
$21,190 and $15,334, respectively, on these contracts are included in the
accompanying financial statements. The terms of the open contracts are as
follows:
Ascent:
<TABLE>
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 90,249 $ 90,249 3,160,000 $ 88,592 $ (1,657)
U.S. Dollar Belgian Franc
- -------------------------------------------------------------------------------------
05/05/97 338,693 338,693 576,000 332,747 (5,946)
U.S. Dollar German Deutschemark
- -------------------------------------------------------------------------------------
05/13/97 46,494 46,494 264,000 45,274 (1,220)
U.S. Dollar French Franc
- -------------------------------------------------------------------------------------
05/06/97 41,069 41,069 103,000 41,029 (40)
U.S. Dollar Malaysian Ringgit
- -------------------------------------------------------------------------------------
05/01/97 40,117 40,117 78,000 40,042 (75)
U.S. Dollar Dutch Guilder
- -------------------------------------------------------------------------------------
05/20/97 109,135 109,135 810,000 103,335 (5,800)
U.S. Dollar Swedish Krona
- -------------------------------------------------------------------------------------
Contracts to Sell
- -----------------
05/20/97 4,560,000 127,842 130,506 130,506 2,664
Belgian Franc U.S. Dollar
- -------------------------------------------------------------------------------------
06/03/97 62,000 42,234 42,714 42,714 480
Swiss France U.S. Dollar
- -------------------------------------------------------------------------------------
05/05/97 907,000 523,959 538,630 538,630 14,671
German Deutschemark U.S. Dollar
- -------------------------------------------------------------------------------------
05/13/97 1,496,300 256,605 266,544 266,544 9,939
French Franc U.S. Dollar
- -------------------------------------------------------------------------------------
06/17/97 32,340,000 256,639 265,084 265,084 8,445
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------
07/24/97 14,000,000 111,705 112,369 112,369 664
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------
06/18/97 204,000 105,079 105,576 105,576 497
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
07/18/97 160,000 82,588 82,988 82,988 400
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
05/20/97 810,000 103,335 109,054 109,054 5,719
Swedish Krona U.S. Dollar
- -------------------------------------------------------------------------------------
$ 28,741
============
</TABLE>
46
<PAGE>
- --------------------------------------------------------------------------------
4. Forward Foreign Currency Exchange Contracts (continued)
- --------------------------------------------------------------------------------
Crossroads:
<TABLE>
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 77,696 $ 77,696 2,720,000 $ 76,256 $ (1,440)
U.S. Dollar Belgian Franc
- -------------------------------------------------------------------------------------
05/05/97 253,015 253,015 430,000 248,404 (4,611)
U.S. Dollar German Deutschemark
- -------------------------------------------------------------------------------------
05/13/97 27,143 27,143 154,000 26,410 (733)
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 34,460 34,460 67,000 34,395 (65)
U.S. Dollar Dutch Guilder
- -------------------------------------------------------------------------------------
05/20/97 67,367 67,367 500,000 63,787 (3,580)
U.S. Dollar Swedish Krona
- -------------------------------------------------------------------------------------
Contracts to Sell
- -----------------
05/20/97 3,530,000 98,965 101,027 101,027 2,062
Belgian Franc U.S. Dollar
- -------------------------------------------------------------------------------------
06/03/97 29,000 19,755 19,863 19,863 108
Swiss Franc U.S. Dollar
- -------------------------------------------------------------------------------------
05/05/97 730,000 421,707 433,513 433,513 11,804
German Deutschemark U.S. Dollar
- -------------------------------------------------------------------------------------
05/13/97 1,092,600 187,373 194,769 194,769 7,396
French Franc U.S. Dollar
- -------------------------------------------------------------------------------------
06/17/97 21,380,000 169,664 175,278 175,278 5,614
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------
07/24/97 11,690,000 93,274 93,828 93,828 554
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------
06/18/97 138,000 71,083 71,348 71,348 265
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
07/18/97 130,000 67,102 67,427 67,427 325
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
05/20/97 500,000 63,787 67,317 67,317 3,530
Swedish Krona U.S. Dollar
- -------------------------------------------------------------------------------------
$ 21,190
============
Legacy:
Contracts to Buy
- ----------------
05/20/97 41,046 $ 41,046 1,440,000 $ 40,371 $ (675)
U.S. Dollar Belgian Franc
- -------------------------------------------------------------------------------------
05/05/97 109,002 109,002 185,000 106,871 (2,131)
U.S. Dollar German Deutschemark
- -------------------------------------------------------------------------------------
05/13/97 14,465 14,465 82,000 14,062 (403)
U.S. Dollar French Franc
- -------------------------------------------------------------------------------------
05/06/97 41,069 41,069 103,000 41,030 (39)
U.S. Dollar Malaysian Ringgit
- -------------------------------------------------------------------------------------
05/01/97 29,316 29,316 57,000 29,261 (55)
U.S. Dollar Dutch Guilder
- -------------------------------------------------------------------------------------
05/20/97 60,631 60,631 450,000 57,409 (3,222)
U.S. Dollar Swedish Krona
- -------------------------------------------------------------------------------------
</TABLE>
Aetna Generation Funds Semi-Annual Report 47
<PAGE>
- --------------------------------------------------------------------------------
4. Forward Foreign Currency Exchange Contracts (continued)
- --------------------------------------------------------------------------------
Legacy (continued):
<TABLE>
<CAPTION>
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 1,940,000 $ 54,389 55,522 $ 55,522 $ 1,133
Belgian Franc U.S. Dollar
- -------------------------------------------------------------------------------------
05/05/97 428,000 247,248 254,174 254,174 6,926
German Deutschemark U.S. Dollar
- --------------------------------------------------------------------------------------
05/13/97 957,600 164,222 169,590 169,590 5,368
French Franc U.S. Dollar
- -------------------------------------------------------------------------------------
05/02/97 33,000 53,544 53,526 53,526 (18)
British Pound U.S. Dollar
- -------------------------------------------------------------------------------------
06/17/97 18,010,000 142,922 147,723 147,723 4,801
Japanese Yen U.S. Dollar
- -------------------------------------------------------------------------------------
06/18/97 106,000 54,600 54,797 54,797 197
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
07/18/97 110,000 56,779 57,054 57,054 275
Dutch Guilder U.S. Dollar
- -------------------------------------------------------------------------------------
05/20/97 450,000 57,409 60,586 60,586 3,177
Swedish Krona U.S. Dollar
- -------------------------------------------------------------------------------------
$15,334
============
</TABLE>
- -------------------------------------------------------------------------------
5. Authorized Capital Shares and Capital Shares Transactions
- -------------------------------------------------------------------------------
Each Fund is authorized to issue 100 million shares each of Select and Adviser
Class shares. Share transactions for each Fund were as follows:
-------------------------------------------------------
Ascent
-------------------------------------------------------
Select Adviser
----------------------------- ---------------------
Period from
Period ended Year ended January 20, 1997 to
April 30, 1997 October 31, 1996 April 30, 1997
-------------- ---------------- -------------------
Shares sold 1,164,381 491,477 16,125
Shares issued upon
reinvestment 64,924 219,147 --
Shares redeemed (1,491,528) (412,682) --
-------------- -------------- --------------
Net increase (decrease) (262,223) 297,942 16,125
============== ============== ==============
48
<PAGE>
- -------------------------------------------------------------------------------
5. Authorized Capital Shares and Capital Shares Transactions (continued)
- -------------------------------------------------------------------------------
-------------------------------------------------------
Crossroads
-------------------------------------------------------
Select Adviser
----------------------------- ---------------------
Period from
Period ended Year ended January 20, 1997 to
April 30, 1997 October 31, 1996 April 30, 1997
-------------- ---------------- -------------------
Shares sold 1,225,558 616,536 3,587
Shares issued upon
reinvestment 85,399 207,057 --
Shares redeemed (1,359,107) (703,606) --
-------------- -------------- --------------
Net increase (decrease) (48,150) 119,987 3,587
============== ============== ==============
-------------------------------------------------------
Legacy
-------------------------------------------------------
Select Adviser
----------------------------- ---------------------
Period from
Period ended Year ended January 20, 1997 to
April 30, 1997 October 31, 1996 April 30, 1997
-------------- ---------------- -------------------
Shares sold 1,070,795 414,022 12,527
Shares issued upon
reinvestment 54,930 206,513 --
Shares redeemed (1,499,252) (425,820) --
-------------- -------------- --------------
Net increase (decrease) (373,527) 194,715 12,527
============== ============== ==============
As of April 30, 1997, the following shares of the Funds were owned by Aetna and
its affiliates:
--------------------------
Select Adviser
--------------------------
Ascent 1,649,897 2,000
Crossroads 1,755,214 --
Legacy 1,494,303 2,271
Aetna Generation Funds Semi-Annual Report 49
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
- ------------------------------------------ ---------------------------------------------
Aetna Generation Funds Ascent
---------------------------------------------
Select Class
---------------------------------------------
Six month Period from
period ended January 4, 1995
April 30, 1997 Year ended to October 31,
(Unaudited) October 31, 1996 1995
-------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value per share, beginning of
period .................................. $12.57 $11.67 $10.00
-------- ------- --------
Income from investment operations:
Net investment income ................... 0.08 0.21 0.25
Net realized and change in unrealized 1.00 2.04 1.42
gain or loss ..........................
-------- ------- --------
Total from investment operations ...... 1.08 2.25 1.67
Less distributions:
From net investment income .............. (0.25) (0.38) --
From net realized gains on investments .. (0.97) (0.97) --
-------- ------- --------
Net asset value per share, end of period .. $12.43 $12.57 $11.67
======== ======= ========
Total return .............................. 8.67% 20.94% 16.70%
Net assets, end of period (000's) ......... $22,214 $25,752 $20,433
Ratio of total investment expenses to 1.61% 1.73% 1.38%
average net assets* .....................
Ratio of net investment income to average 1.26% 1.69% 2.80%
net assets* .............................
Portfolio turnover rate ................... 89.79% 104.84% 164.09%
Average commission rate paid per share .... $0.0325 $0.0349 --
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
50
<PAGE>
- ---------------------------------------------------------- --------------
Aetna Generation Funds Ascent
- ---------------------------------------------------------- --------------
Adviser Class
--------------
Period from
January 20, 1997
to April 30, 1997
(Unaudited)
--------
Net asset value per share, beginning of period ............ $12.50
--------
Income from investment operations:
Net investment income ................................... 0.04
Net realized and change in unrealized gain or loss ...... (0.12)
--------
Total from investment operations ...................... (0.08)
--------
Net asset value per share, end of period .................. $12.42
========
Total return .............................................. (0.64)%
Net assets, end of period (000's) ......................... $ 200
Ratio of total investment expenses to average net assets* . 2.36%
Ratio of net investment income to average net assets* ..... 1.37%
Portfolio turnover rate ................................... 89.79%
Average commission rate paid per share .................... $0.0325
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Generation Funds Semi-Annual Report 51
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
- ------------------------------------------ ---------------------------------------------
Aetna Generation Funds Crossroads
- ------------------------------------------ ---------------------------------------------
Select Class
---------------------------------------------
Six month Period from
period ended January 4, 1995
April 30, 1997 Year ended to October 31,
(Unaudited) October 31, 1996 1995
-------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value per share, beginning of
period ................................. $12.16 $11.53 $10.00
-------- ------- --------
Income from investment operations:
Net investment income ................... 0.11 0.25 0.29
Net realized and change in unrealized
gain or loss .......................... 0.70 1.64 1.24
-------- ------- --------
Total from investment operations....... 0.81 1.89 1.53
Less distributions:
From net investment income .............. (0.30) (0.44) --
From net realized gains on investments .. (1.00) (0.82) --
-------- ------- --------
Net asset value per share, end of period .. $11.67 $12.16 $11.53
======== ======= ========
Total return .............................. 6.82% 17.66% 15.30%
Net assets, end of period (000's) ......... $21,462 $22,947 $20,370
Ratio of total investment expenses to
average net assets* ..................... 1.68% 1.74% 1.40%
Ratio of total investment income to
average net assets* ..................... 1.83% 2.18% 3.26%
Portfolio turnover rate ................... 97.80% 107.40% 166.93%
Average commission rate paid per share .... $0.0293 $0.0350 --
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
52
<PAGE>
- ---------------------------------------------------------- --------------
Aetna Generation Funds Crossroads
- ---------------------------------------------------------- --------------
Adviser Class
--------------
Period from
January 20, 1997
to April 30, 1997
(Unaudited)
--------
Net asset value per share, beginning of period ............ $11.67
--------
Income from investment operations:
Net investment income ................................... 0.06
Net realized and change in unrealized gain or loss ...... (0.08)
--------
Total from investment operations ...................... (0.02)
--------
Net asset value per share, end of period .................. $11.65
========
Total return .............................................. (0.17)%
Net assets, end of period (000's) ......................... $ 42
Ratio of total investment expenses to average net assets* . 2.44%
Ratio of total investment income to average net assets* ... 1.79%
Portfolio turnover rate ................................... 97.80%
Average commission rate paid per share .................... $0.0293
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Generation Funds Semi-Annual Report 53
<PAGE>
Financial Highlights
Selected data for a fund share outstanding throughout each period:
<TABLE>
<CAPTION>
- ------------------------------------------ ---------------------------------------------
Aetna Generation Funds Legacy
---------------------------------------------
Select Class
---------------------------------------------
Six month Period from
period ended January 4, 1995
April 30, 1997 Year ended to October 31,
(Unaudited) October 31, 1996 1995
-------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value per share, beginning of
period .................................. $11.64 $11.41 $10.00
-------- ------- --------
Income from investment operations:
Net investment income ................... 0.14 0.29 0.33
Net realized and change in unrealized
gain or loss .......................... 0.45 1.20 1.08
-------- ------- --------
Total from investment operations....... 0.59 1.49 1.41
Less distributions:
From net investment income .............. (0.33) (0.50) --
From net realized gain on investments ... (0.89) (0.76) --
-------- ------- --------
Net asset value per share, end of period .. $11.01 $11.64 $11.41
======== ======= ========
Total return .............................. 5.06% 14.11% 14.10%
Net assets, end of period (000's) ......... $17,000 $22,326 $19,651
Ratio of total investment expenses to
average net assets* ..................... 1.72% 1.73% 1.42%
Ratio of total investment income to
average net assets* ..................... 2.45% 2.62% 3.75%
Portfolio turnover rate ................... 111.33% 91.62% 179.88%
Average commission rate paid per share .... $0.0288 $0.0289 --
</TABLE>
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
54
<PAGE>
- ---------------------------------------------------------- --------------
Aetna Generation Funds Legacy
- ---------------------------------------------------------- --------------
Adviser Class
--------------
Period from
January 20, 1997
to April 30, 1997
(Unaudited)
----------
Net asset value per share, beginning of period ............ $11.01
-------
Income from investment operations:
Net investment income ................................... 0.07
Net realized and change in unrealized gain or loss ...... (0.09)
-------
Total from investment operations....................... (0.02)
-------
Net asset value per share, end of period .................. $10.99
=======
Total return .............................................. (0.18)%
Net assets, end of period (000's) ......................... $ 138
Ratio of total investment expenses to average net assets* . 2.47%
Ratio of total investment income to average net assets* ... 2.57%
Portfolio turnover rate ................................... 111.33%
Average commission rate paid per share .................... $0.0288
*Annualized for periods of less than one year.
Per share data calculated using weighted average number of shares outstanding
throughout the period.
Aetna Generation Funds Semi-Annual Report 55
<PAGE>
[This page intentionally left blank]
<PAGE>
[BACKCOVER]
Aetna Ascent
Aetna Crossroads
Aetna Legacy
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.AETGEN-97
