<PAGE>
CIGNA International Stock Fund
Semi-Annual Report to Stockholders
For the Six Months Ended June 30, 1995
[Horizontal Globe Graphic Appears here]
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
-------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES AND EQUIVALENTS - 90.0%
Argentina - 0.6%
YPF Sociedad Anomima ADR (Oil & Gas) 2,000 $ 37,750
---------
Australia - 6.3%
AWA Ltd. (Electrical Equipment) 70,000 27,363
Australis Media (Communication)* 100,000 51,883
Black Hill Mineral N.L. (Mining)* 200,000 1,422
Broken Hill Proprietary Co., Ltd. (Diversified Resources) 6,600 81,245
Charters Towers Gold Mines N.L. (Gold Mining)* 50,000 22,743
Command Petroleum (Oil) 150,000 37,313
Fosters Brewing (Brewing) 100,000 88,842
Norminco Ltd. (Mining) 250,000 23,099
Pancontinental MNG (Diversified Resources) 50,000 67,520
Savage Resources Ltd. (Mining)* 28,300 16,292
Venture Exploration N.L. (Mining)* 46,000 24,520
---------
442,242
---------
Chile - 0.3%
Compania de Telefonos SA ADR (Telecommunications) 250 20,344
---------
Denmark - 0.6%
Novo Nordisk (Healthcare) 400 42,663
---------
France - 2.4%
Carrefour (Food Retailing) 57 29,197
Cie Financiere de Paribas (Banking) 419 25,185
Cie Generale Eaux (Water Utility) 340 37,845
Compagnie de Saint Gobain (Glass) 310 37,446
Credit Commerciale de France (Banking) 900 40,276
---------
169,949
---------
Germany - 4.9%
AVA Alig Handels (Food Retailing) 100 39,048
BHF Bank (Banking) 150 39,374
Contl Gummi Fin (Tires) Warrants* 250 9,762
Deutsche Bank AG (Banking) 90 43,734
Heidelberg Zement AG (Cement) 100 85,328
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
--------------------------------------------------------------------------------------
<S> <C> <C>
Henkel KGAA (Household Detergents & Adhesives) 110 $ 42,397
Hochtief AG (Construction) 65 35,816
Holzman (Construction) 68 33,535
Munchener Ruckversicherung (Reinsurance) Warrants* 100 13,161
---------
342,155
---------
Hong Kong - 3.3%
Cheung Kong (Real Estate/Cement) 15,000 74,246
HSBC Holdings (Banking) 2,855 36,620
Hong Kong Electric Holdings Ltd. (Electric Utility) 10,000 33,989
Hutchison Whampoa Ltd. (Conglomerate) 10,000 48,334
Shangri La Asia Ltd. (Entertainment) 30,000 35,669
---------
228,858
---------
India - 1.2%
India Fund (Investment Company) 15,000 83,028
---------
Japan - 30.2%
Asahi Bank (Banking) 15,000 160,168
Bridgestone Corp. (Tire & Rubber) 6,000 88,490
Canon, Inc. (Precision Instrument) 5,000 81,411
Canon Aptex Inc. (Machinery) 3,000 54,510
Catena Corp. (Office Furnishings) 4,000 60,881
CI Kasei Co. (Miscellaneous) 5,000 49,319
Comson Corp. (Industrial Machinery) 6,000 62,580
Daifuku Co., Ltd. (Industrial Machinery) 5,000 55,985
Fujitsu Ltd. (Business Machines) 8,000 79,759
Komori Corp. (Industrial Machinery) 3,000 61,235
Kyocera Corp. (Electronics) 2,000 164,710
Matsumotokiyoshi (Miscellaneous) 3,000 61,235
Miroku Joho Service Co., Ltd. (Accounting Soft Services) 4,000 89,670
Mitsubishi Material Corp.(Non-ferrous Metals) 15,000 67,253
Mitsui Fudosan Co. (Real Estate) 8,000 91,652
Nikko Co. (Machinery) 6,000 48,493
Nikko Securities Co., Ltd. (Investments) 8,000 64,940
Nippon Chutetsukan (Construction & Mining Equipment) 10,000 46,605
Nissha Printing Co. (Publishing) 2,000 27,373
Obayashi Road Corp. (Construction) 7,000 51,537
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
---------------------------------------------------------------------------------------
<S> <C> <C>
Omron Corp. (Electrical & Electronic Equipment) 6,000 $ 114,684
Sanwa Bank Ltd. (Banking) 5,000 94,390
Sankyo Co., Ltd. (Drugs & Health Care) 2,000 94,390
Shinko Electric Industries Co., Ltd. (Metal Stampings) 4,000 86,367
Tokio Marine & Fire Insurance Ltd. (Insurance) 7,000 79,205
Tonami Transport (Transportation) 10,000 71,972
Xebio Co., Ltd. (Retail Trade) 3,000 102,649
-----------
2,111,463
-----------
Korea - 2.6%
Korean Investment Fund (Investment Company) 16,000 184,000
-----------
Malaysia - 4.6%
Kim Hin Industry (Ceramic Products) 12,500 58,450
Malaysia Mining CP (Metals - Non Ferrous) 30,000 54,389
Metacorp Berhad (Chemical) 26,666 82,032
Park May BHD (Transportation) 10,000 24,815
Renong BHD (Multi - Industry) 54,000 100,558
-----------
320,244
-----------
Mexico - 1.3%
Cemex SA (Cement) 6,750 23,220
Desc SA (Miscellaneous) 2,702 9,035
Desc S A De C V (Miscellaneous) 10,000 33,440
Telefonos de Mexico SA ADR (Telecommunications) 750 22,219
-----------
87,914
-----------
Netherlands - 2.6%
Bolswessanen (Food & Beverages) 3,000 62,149
Gist Brocades (Health & Household) 2,000 51,888
Pirelli Tyre Holdings (Auto Equipment)* 10,000 67,118
-----------
181,155
-----------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
-------------------------------------------------------------------------------
<S> <C> <C>
New Zealand - 2.3%
Australian Brew & Hospital Group Ltd. (Brewing)* 30,000 $ 3,811
Carter Holt Harvey Ltd. (Forest Products) 33,879 82,897
Fletcher Challenge (Forest Products) 20,000 26,340
Sanford (Agriculture) 10,000 21,259
Zuelig New Zealand Ltd. (Miscellaneous) 60,000 29,282
---------
163,589
---------
Norway - 1.0%
Hafslund Nycomed (Healthcare) 500 11,564
Saga Petroleum (Energy) 4,000 56,804
---------
68,368
---------
Singapore - 10.1%
City Developments Ltd. (Real Estate) 10,000 61,181
Comfort Group (Transportation) 100,000 78,712
DBS Land (Real Estate) 30,000 94,025
Hong Leong Finance (Financial Services) 10,000 34,347
Keppel Corp., Ltd. (Conglomerate) 10,000 81,574
Natsteel Ltd. (Iron/Steel) 30,000 62,683
Overseas-Chinese Banking Corp., Ltd. (Banking) 3,000 33,274
Singapore Airlines Ltd. (Airlines) 5,000 46,154
Times Publishing (Publishing) 7,000 17,331
United Overseas Bank Ltd. (Banking) 7,424 70,123
United Overseas Land Ltd. (Real Estate) 35,000 69,374
Wing Tai Holdings (Textiles) 30,000 57,746
---------
706,524
---------
Spain - 1.9%
BCH (Banking) 1,700 36,000
Repsol SA (Energy) 1,475 46,396
Telefonica de Espana (Telecommunications) 4,000 51,517
---------
133,913
---------
Sweden - 1.2%
Assi Doman (Forest Products) 1,500 32,285
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
-------------------------------------------------------------------------------------------
<S> <C> <C>
ICB Shipping (Freight)* 5,500 $ 48,411
------------
80,696
------------
Switzerland - 1.3%
Biber Holding (Forest Products) 1,250 43,693
Winterthur (Insurance) 75 45,853
------------
89,546
------------
Thailand - 1.1%
Thai Fund (Investment Company) 2,989 79,209
------------
United Kingdom - 10.1%
Associated British Ports Holdings PLC (Business Services) 4,000 17,815
BAT Industries PLC (Tobacco) 10,250 78,583
BTR PLC (Conglomerate) Warrants* 229 98
Barclays Bank PLC (Banking) 7,000 75,211
British Telecommunications PLC (Telecommunications) 5,300 33,046
Courtaulds Textiles PLC (Apparel & Textiles) 2,000 14,268
Fisons PLC (Drugs & Health Care) 14,900 45,503
Glaxo Holdings PLC (Drugs & Health Care) 5,000 61,357
Grand Metropolitan (Food & Beverage) 8,000 49,054
Hanson PLC (Industrial Conglomerate) 16,700 58,305
Ladbroke Group PLC (Hotels & Restaurants) 2,100 5,645
Prudential Corp. PLC (Insurance) 16,200 86,063
SmithKline Beecham PLC (Drugs & Health Care) 6,000 54,303
TESCO PLC (Retail Grocery) 17,700 81,645
Whitbread PLC (Food & Beverages) 5,000 47,718
------------
708,614
------------
Venezeula - 0.1%
Corimon C A S A C A (Pollution Control) 1,000 6,500
------------
TOTAL INVESTMENTS IN SECURITIES - 90.0%
(Total Cost - $5,956,657) 6,288,724
Cash and Other Assets Less Liabilities - 10.0% 698,993
------------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Investments in Securities
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Market
Number Value
of Shares (000)
------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS - 100.0%
(equivalent to $11.21 per share based on 623,140
shares outstanding) $ 6,987,717
============
</TABLE>
* Non-income Producing Securities.
The Notes to Financial statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Statement of Assets and Liabilities (Unaudited)
June 30, 1995
<TABLE>
<S> <C>
Assets:
Investments in securities at value (Cost - $5,956,657) $ 6,288,724
Foreign currency (Cost - $553,593) 568,908
Cash on deposit with custodian 28,694
Dividends receivable 35,387
Receivable for investments sold 216,844
Receivable from adviser 8,314
Investment for deferred compensation plan (Cost - $7,701) 8,236
Other assets 995
-----------
Total assets 7,156,102
-----------
Liabilities:
Payable for investments purchased 14,486
Payable for forward contracts 106,745
Accrued expenses due to affiliates 5,064
Payable for deferred compensation plan 8,236
Other accrued expenses 33,854
-----------
Total liabilities 168,385
-----------
Net Assets: (applicable to 623,140 shares of beneficial
interest with par value of $.001 per share issued and
outstanding; unlimited number of shares authorized) $ 6,987,717
===========
Shares outstanding 623,140
===========
Net asset value, offering price and redemption
price per share $11.21
===========
Components of Net Assets:
Capital paid in $ 6,528,707
Distributions in excess of net investment income (39,981)
Unrealized appreciation 241,172
Accumulated net realized gain 257,819
-----------
Net Assets $ 6,987,717
===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
6/30/95 12/31/94
------------ -----------
<S> <C> <C>
Operations:
Net investment income $ 15,027 $ 23,685
Net realized gain from securities and
foreign currency transactions 99,476 900,988
Unrealized depreciation of investments
and foreign currency translations (461,691) (725,785)
------------ -----------
Net increase (decrease) in net assets
from operations (347,188) 198,888
------------ -----------
Distributions to Shareholders:
From net investment income (20,707)
From realized capital gain - (977,504)
------------ -----------
Total distributions to shareholders - (998,211)
------------ -----------
Capital Share Transactions:
Net asset value of shares issued to
shareholders in reinvestment of
dividends and distributions - 998,211
------------ -----------
Net increase from capital share transactions - 998,211
------------ -----------
Net Increase (Decrease) in Net Assets (347,188) 198,888
Net Assets:
Beginning of period 7,334,905 7,136,017
------------ -----------
End of period (Including overdistributed net
investment income of $33,383 and
$55,008, respectively) $ 6,987,717 $ 7,334,905
============ ===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Statement of Operations
For the Six Months Ended June 30, 1995 (Unaudited)
<TABLE>
<S> <C>
Investment Income
Income:
Dividends (net of foreign taxes withheld of $9,443) $ 59,201
Interest 23
-----------
59,224
Expenses:
Custodian fees and expenses 37,335
Investment advisory fees 27,741
Auditing and legal fees 14,066
Administrative services 8,621
Transfer agent fees and expenses 1,488
Other 4,072
-----------
Total expenses 93,323
Less expense recovery (49,126)
-----------
Net expenses 44,197
-----------
Net Investment Income 15,027
-----------
Realized and Unrealized Loss on
Investments
Net realized gain from securities
transactions 92,878
Net realized gain on currencies and forward
currency exchange contracts 6,598
Unrealized depreciation of investments (461,691)
-----------
Net Realized and Unrealized Loss on Investments
and Foreign Currency (362,215)
-----------
Net Decrease in Net Assets
Resulting from Operations $ (347,188)
===========
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA International Stock Fund
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies. CIGNA International Stock Fund (the
"Fund") was organized as the sole series of CIGNA Institutional Funds Group, a
Massachusetts business trust (the "Trust") on August 10, 1992 and is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements.
A. Security Valuation - Equity securities, including warrants, that are listed
on a United States or foreign securities exchange are valued at the last sale
price or, if there is no such price available, at the last bid price. Portfolio
securities that are traded on foreign securities exchanges are generally valued
at the preceding closing prices of such securities on their respective
exchanges. A security that is listed or traded on more than one exchange is
valued on the exchange determined to be the primary market for such security by
the Board of Trustees or its delegates. Other equity securities traded in the
over-the-counter market, including listed securities whose primary markets are
believed to be over-the-counter, are valued at the most recent bid price which
may be based on valuations furnished from a pricing service or from independent
securities dealers. Short-term investments with remaining maturities of up to
and including 60 days are valued at amortized cost, which approximates market.
Short-term investments that mature in more than 60 days are valued at current
market quotations. Other securities and assets of the Fund are appraised at
fair value as determined in good faith by, or under the authority of, the
Trustees.
B. Security Transactions and Related Investment Income - Security transactions
are accounted for on the trade date (date the order to buy or sell is executed).
Dividend income is recorded on the ex-dividend date, and interest income is
recorded on the accrual basis. Securities gains and losses are determined on
the basis of identified cost. The cost for Federal income tax purposes is
substantially the same.
C. Federal Taxes - It is the Fund's policy to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and capital gains, if any,
to its shareholders. Therefore, no Federal income or excise taxes on realized
income have been accrued.
D. Dividends and Distributions to Shareholders - Dividends and distributions
are recorded by the Fund on the ex-dividend date. Payments in excess of
financial accounting income due to differences between financial and tax
accounting, to meet the minimum distribution requirements for tax basis income,
are deducted from paid in capital when such differences are determined to be
permanent.
E. Currency Translation and Forward Currency Contracts - Foreign currency
amounts are translated into U.S. dollars at the prevailing exchange rates as
follows: assets and liabilities at the rate of exchange at the end of the
period, purchases and sales of securities and expenses at the rate of exchange
prevailing on the dates of such transactions. The Fund from time to time may
enter into foreign currency transactions to convert to and from different
foreign currencies and to convert foreign currencies to and from the U.S.
dollar. The Fund enters into these transactions either on a spot basis at the
spot rate prevailing in the foreign currency exchange market or uses forward
currency exchange contracts to purchase or sell foreign currencies. Realized
and unrealized gains and losses on foreign currency transactions represent
foreign exchange gains and losses arising from the sale of holdings of foreign
currencies, foreign currency exchange rate fluctuations between trade dates and
settlement dates on securities transactions, and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received.
<PAGE>
CIGNA International Stock Fund
Notes to Financial Statements (Continued) (Unaudited)
2. Investment Advisory Fees and Other Transactions with Affiliates. Investment
advisory fees were paid or accrued to CIGNA Investments, Inc. (CII), certain
officers and directors of which are affiliated with the Fund. Such advisory
fees are based on an annual rate of 0.80% applied to the average daily net
assets of the Fund. CII has voluntarily agreed to reimburse such portion of its
fee and absorb other expenses as is necessary to cause the total annual
operating expenses of the Fund not to exceed 1.25% of the Fund's average daily
net assets.
The Fund reimburses CII for a portion of the compensation and related expenses
of the Fund's Treasurer and Secretary and certain persons who assist in carrying
out the responsibilities of those offices. For the six months ended June 30,
1995, the Fund paid or accrued $8,621.
CII is an indirect, wholly-owned subsidiary of CIGNA Corporation.
3. Trustees' Fees. Trustees' fees represent remuneration paid or accrued to
trustees who are not employees of CIGNA Corporation or any of its affiliates.
Trustees may elect to defer receipt of all or a portion of their fees which are
invested in mutual fund shares in accordance with a deferred compensation plan.
4. Purchases and Sales of Securities. Purchases and sales of securities,
excluding short-term obligations, aggregated $1,627,979 and $2,117,762,
respectively, for the six months ended June 30, 1995. At June 30, 1995,
unrealized appreciation for Federal income tax purposes aggregated $346,686, of
which $898,808 related to appreciated securities and $552,122 related to
depreciated securities.
5. Forward Currency Contracts. During the year, the Fund has entered into
various forward currency contracts under which it has been obligated to exchange
currencies at certain specified dates. Risks arise from the possible inability
of the counterparties to meet the terms of their contracts and from the movement
of currency values. The outstanding contract at June 30, 1995 was as follows:
<TABLE>
<CAPTION>
Contract to
Settlement ----------------------------- Unrealized
Date Receive Deliver Depreciation
---------- --------------- ------------- ------------
<S> <C> <C> <C>
11/21/95 JPY 110,172,026 $1,340,000 $106,745
</TABLE>
JPY = Japanese Yen
6. Capital Stock. The Fund offers an unlimited number of shares of beneficial
interest with a par value of $.001 per share. All of the shares outstanding at
June 30, 1995 were owned by an affiliate of CII. The only transaction in
capital stock for the period from January 1, 1994 to June 30, 1995 was the
reinvestment of a dividend and distribution in the amount of $998,211 in 82,890
additional shares on December 31, 1994.
<PAGE>
CIGNA International Stock Fund
Notes to Financial Statements (Continued) (Unaudited)
7. Financial Highlights. The following selected per share data is computed on
the basis of a share outstanding throughout the period:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
(Unaudited) January 11, 1993
Six Months Ended Year Ended through
June 30, 1995 December 31, 1994 December 31, 1993*
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 11.77 $ 13.21 $ 10.00
Income from investment operations
Net investment income** 0.03 0.04 0.09
Net realized and unrealized gains (losses) on
investments, foreign currency transactions
and translations (0.59) 0.33 4.18
--------------- --------------- ---------------
Total from investment operations (0.56) 0.37 4.27
--------------- --------------- ---------------
Less Distributions:
Distributions from net investment income - (0.04) (0.09)
Distributions in excess of net investment income - - (0.02)
Distributions from capital gains - (1.77) (0.95)
--------------- --------------- ---------------
Total Distributions - (1.81) (1.06)
--------------- --------------- ---------------
Net asset value, end of period $ 11.21 $ 11.77 $ 13.21
=============== =============== ===============
Total Investment Return (4.76)% 2.77% 42.73%
Ratios and Supplemental Data:
Net assets, end of period (000 omitted) $ 6,988 $ 7,335 $ 7,136
Ratio of operating expenses to average net assets 0.63% a 1.25% a 1.25% a
Ratio of net investment income to average net assets 0.21% b 0.32% b 0.75% b
Portfolio turnover 24% 63% 66%
</TABLE>
a. Ratios of expenses to average net assets prior to expense reimbursements
were 1.33%, 2.35% and 2.67%, respectively, for 1995, 1994 and 1993. Per
share expenses prior to reduction were $0.15, $0.29 and $0.30,
respectively.
b. Ratios of net investment income to average net assets prior to expense
reimbursements were (0.49)%, (0.78)% and (0.73)%, respectively, for 1995,
1994 and 1993. Per share net investment income amounts prior to reduction
were $(0.05), $(0.10) and $(0.08), respectively.
* Commencement of operations.
** Net investment income per share has been calculated in accordance with SEC
requirements, with the exception that end of year
accumulated/(overdistributed) net investment income has not been adjusted
to reflect current year permanent differences between financial and tax
accounting.
<PAGE>
MATTERS SUBMITTED TO A VOTE OF SHAREHOLDERS (Unaudited)
A Special Meeting of the Shareholder of CIGNA Institutional Funds Group (the
"Trust") was held on Tuesday, April 25, 1995 at 11:30 a.m., Eastern Time.
Five trustees were elected by a vote of the Shareholder to serve as members of
the Board of the Trust until the election and qualification of their
successors. The Shareholder of the Trust voted to elect the following
Trustees:
<TABLE>
<CAPTION>
For Withheld
--- --------
<S> <C> <C>
R. Bruce Albro 623,140 -
Hugh R. Beath 623,140 -
Russell H. Jones 623,140 -
Paul J. McDonald 623,140 -
Arthur C. Reeds, III 623,140 -
</TABLE>
The appointment of Price Waterhouse LLP to serve as independent accountants
for the fiscal year ending December 31, 1995 was ratified by a vote of the
Shareholder of the Trust as follows:
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C>
623,140 - -
</TABLE>
No other business was transacted at the meeting.
