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Dear American Odyssey Funds Shareholders:
The U.S. equity markets closed the first half of the year on a negative note.
Most of the equity indices declined during the second quarter of 2000 as
investors rotated out of the growth and high tech segments of the market. The
period was also marked by a continued up-trend in market volatility. The U.S.
fixed income market followed a strong first quarter of 2000 with moderate
performance in the second quarter. The global economy was characterized by
strong growth, improving economic prospects and a growing concern about
inflation. The possibility of a slower growing U.S. economy was viewed as
especially troubling to the rest of the world.
During the first half of 2000 a number of enhancements were made to the
management of the American Odyssey Funds. The Emerging Opportunities Fund added
a subadviser, State Street Global Advisors, during the second quarter. The
Emerging Opportunities Fund continued its solid performance, outperforming its
benchmark, the Russell 2500 index, by 517 basis points year-to-date. The
International Equity Fund continued to deliver superior performance finishing
409 basis points ahead of its benchmark, the Morgan Stanley Capital
International EAFE Index. The Long-Term Bond Fund managed to post a 3.98% return
versus 4.16% for the Salomon Core +5 Index. Affected by the underperformance in
the high yield sector, the Global High-Yield Bond Fund trailed its composite
benchmark (75% CS First Boston High Yield and 25% JP Morgan EMB Plus Index) by
1.36% for the first two quarters of 2000. The Intermediate-Term Bond Fund
underperformed the Lehman Brothers Government/Credit Index (formerly Corporate
Intermediate Bond Index), returning 2.39% versus 3.21% for the benchmark. The
Core Equity Fund underperformed its benchmark, down 7.36% versus the S&P 500's
negative 0.42%. During the second quarter of 2000, the Core Equity Fund added
two subadvisers to further diversify the fund. Putnam, a growth manager, and
SSgA, an index manager, each will prospectively manage one third of the Fund.
Assets remained level for the first half of year 2000, ending with more than
$1.7 billion in retirement assets for over 140,000 plan participants.
American Odyssey Fund Management LLC's commitment to be competitive over the
long-term and with a clear objective of delivering value to our participants
will remain.
We thank you for your lasting confidence.
Very truly yours,
ROBERT C. DUGHI
CHAIRMAN OF THE BOARD AND PRESIDENT
AMERICAN ODYSSEY FUNDS MANAGEMENT LLC
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AMERICAN ODYSSEY GLOBAL HIGH-YIELD BOND FUND
PERFORMANCE:
The Fund underperformed its blended benchmark, 75% CS First Boston High
Yield Index and 25% J.P. Morgan Emerging Markets Bond Index Plus, in the first
half of 2000, falling 0.1% while the benchmark gained 1.0%. We attribute this to
unfavorable relative returns in the portfolio's domestic high yield portion
during the second quarter. High yield lost ground due to our defensive-minded
decision to hold cash reserves at higher levels than usual in June, as well as
some of our industry weightings compared to those of the broad high yield
market.
The Fund's emerging markets portion fared better, mainly due to our
comparatively high exposure to Russia which, by far, was the world's strongest
bond market in the first half of the year-and a number of other nations in
Central and Eastern Europe.
OUTLOOK:
We are cautious about high yield in the near term, based on our belief
that it is too soon to determine whether the Fed's policy of aggressively
raising interest rates has slowed U.S. economic growth down to a more reasonable
pace. Longer-term, we believe that high yield valuations remain attractive on an
historical and relative basis, and are likely to attract investors increasingly
disenchanted with lower-return/higher-risk prospects for equities in the next
few months.
Regarding emerging markets, we find their fundamentals very encouraging,
but are also concerned that a variety of U.S.-related issues may serve to
maintain downward pressure on debt prices. As with high yield, therefore, we are
cautious on emerging markets at the moment with a more positive view going
forward.
STRATEGY:
Our core approach to the portfolio's high yield portion, which is to most
heavily favor the telecommunications, cable/media and gaming industries, is
unchanged. We are also avoiding interest-rate-sensitive industries such as
homebuilders and textiles, and those with rising cost structures and low pricing
power. In emerging markets, we are maintaining a fairly defensive approach that
emphasizes bonds with relatively short maturities, healthy cash reserves and a
focus on Russia and other Central/Eastern European markets.
ASSET ALLOCATION:
Asset allocation remains in line with the Fund's blended benchmark, which
invests 75% in high yield and the remaining 25% in emerging markets. We expect
to put some of our current cash reserves back to work as appropriate.
CREDIT SUISSE ASSET MANAGEMENT LLC
INVESTMENT SUBADVISER TO THE AMERICAN ODYSSEY GLOBAL HIGH-YIELD BOND FUND
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AMERICAN ODYSSEY INTERNATIONAL EQUITY FUND
For the first 6 months of 2000 the American Odyssey International Equity
Fund recorded a NAV performance of 0.14% against the MSCI EAFE Index return of
-3.95%. This represents an outperformance by the Fund of 409 basis points.
Over the first half of the year, the stocks in our Healthcare Needs theme
have been the best performers within the portfolio. Expectations of further
industry consolidation and positive earnings and growth news saw the share price
of Aventis and Takeda Chemical rise in particular. Takeda was helped by news
that its tie-up with Celera Genomics will give it access to Celera's proprietary
information about the human genome to develop new drugs. In a similar strategic
move, Aventis's alliance with Millennium Pharmaceuticals will give it access to
what are viewed as Millennium's cutting edge gene research tools.
After a difficult start to the year, when rising interest rates were the
primary cause of the negative returns, stocks in our Growth in Financial
Services theme performed very well during the second quarter. ING's expansion in
the US and expectations of further acquisitions on a global basis were the
primary drivers of the stock's recovery. There had been a concern in certain
quarters over their execution of an effective global strategy, but management
seems now to have convinced the market in this regard.
We have also seen stocks in our Restructuring Opportunities theme perform
well. The best performer was NEC. The share price has risen on the back of
rising global demand for chips. In addition, quicker decision-making among
senior managers at Japan's largest maker of personal computers and microchips
will lead to higher profit. The company has also announced that it will make
available 600 billion Yen (approx. $5.6 billion) for global acquisitions over
the next 3 years.
After being the dominant driver of the portfolio's performance in the
first quarter when corporate activity and superior growth prospects led to
significant investment in the sector, most of the stocks in our Growth in
Telecommunications theme ended up with negative returns for the first 6 months
due to the move out of TMT stocks in the second quarter. Vodafone Group Plc,
which is the biggest holding in the portfolio, is a prime example of this. After
acquiring Mannesmann, the company became the largest cellular operator in the
world, and given the likelihood of mobile penetration rates growing and its
global presence, the company is well placed to benefit from what is likely to be
one of the fastest growing sectors in the coming years. The stock's performance
over the past year has been excellent and after adding to performance in the
first quarter, the stock's performance fell back significantly in the second
quarter.
OUTLOOK:
Rising interest rates across the world, excluding Japan, are putting
additional pressures on already stretched valuations in many stocks. This was
particularly evident in the technology area over
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the second quarter. The decline in share prices was largely concentrated in
those stocks, which are or have been at extremely high valuations relative to
their earnings, if indeed they have earnings at all. This environment has led to
a return--in the short term at least--to value-orientated investment decisions
as investors look to the fundamentals of companies.
Nevertheless, across the globe, technology stocks showed signs of
recovery and by the beginning of July, the ultimate bellwether for tech stocks,
the NASDAQ composite, had clawed its way above the 4,000 level and the immediate
crisis of confidence appears to be over. Having said that, there is now a
greater degree of reality in investor perceptions about the technology, media
and telecom (TMT) sectors. A series of profit warnings from high-profile
technology companies and some aborted IPOs have emphasized the fact that not
everybody will be a winner in the new economy.
Margin pressure continues to be a dominant theme globally. Examples of
this are abundant; food producers like Procter & Gamble and Unilever report
pricing pressure, while HSBC announced that it is cutting mortgages rates in the
UK by 1%, causing further price competition in an already vulnerable sector.
The distorting effect that index funds are having on stock markets was
again evident when shares in two of Europe's largest telecoms companies fell
sharply as Dow Jones announced a change in the compilation method for its
pan-European Stoxx index series. Beginning in September, the Stoxx index will
base its weightings on a company's free float rather than its total market
capitalization. Where individuals, companies and governments have a holding of
over 5% in a particular company, these stakes will be excluded when calculating
that company's weight in the index. As a result, Deutsche Telekom and France
Telecom, in which the German and French governments respectively retain large
stakes, are projected to have their weight in the index almost halve. There is
speculation that MSCI and FTSE will follow Dow Jones' lead. If this happens, we
believe it could help unwind some of the anomalies that have occurred in stock
market valuations during the move to indexing over the last number of years.
On a macro-economic level the dilemma facing us as investors is whether
the interest-rate increases in the UK, Europe and particularly the US will lead
to the golden scenario of 1994, i.e., a soft landing in the economy, and a
period of strong outperformance for equity markets. The fact that stock market
valuations are still very high by historical standards could prevent this
scenario from recurring in 2000 and this is giving us pause for thought. In
Europe, we still believe the euro is undervalued and we expect it to appreciate
further against the US dollar towards the end of 2000, as the interest rate gap
between the US and the Eurozone narrows. This is likely to occur given the
gathering momentum of the Eurozone economy.
The latest Japanese data continues to paint a confused picture but the
economy is showing signs of recovery. Industrial production, which has driven
the economy forward in recent months, has actually begun to decline. In
contrast, household spending and housing starts, which have been
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lackluster, both recorded above-forecast increases. The labor market is also
showing signs of recovery. Given these indications that the economy is on the
mend, the Bank of Japan has been signalling that it may end its zero
interest-rate policy in the second half of the year. We believe the
sustainability of the recovery in Japan is very much dependent on continued
corporate restructuring, which has still not reached the levels promised. We
will also be looking for continued improvement in consumer confidence. In the
meantime, we have taken profit in some of our better-performing Japanese
investments and we have redirected this money to more value-orientated companies
in Europe.
Most of the economies in the Pacific are showing strong signs of
recovery, but have suffered from the perception that a slowdown in the US
economy could have an adverse affect on this recovery. We believe that these
fears are somewhat misplaced because the current strength in economies such as
China and India, and the consequent demand that they are generating for goods
and services from the rest of the region, should cushion the impact of a US
slowdown.
Although indices have broadened out somewhat since the beginning of the
year, the two-tier market is still evident, particularly in the UK, where a
number of quality companies are trading at low multiples relative to their
growth rates. Following the very strong performance in many of our stocks over
the past 12 months, particularly in the TMT sectors, we have taken profits and
switched funds into other lower-valued, more attractive investments.
We continue to believe that a stable or rising interest-rate background
is likely to challenge over-stretched stock valuations in the coming months,
particularly for companies where earnings are uncertain, or are some distance
into the future. We believe that the performance of markets will continue to
broaden from TMT stocks into other sectors, which have been largely ignored in
the momentum-driven markets of the last two years. We will look to take
advantage of opportunities, as they arise, to position the portfolio to benefit
from a broadening of equity markets.
BANK OF IRELAND ASSET MANAGEMENT (US) LIMITED
INVESTMENT SUBADVISER TO THE AMERICAN ODYSSEY INTERNATIONAL EQUITY FUND
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AMERICAN ODYSSEY EMERGING OPPORTUNITIES FUND
The American Odyssey Emerging Opportunities Fund returned 11.74% for the
six-month period ended June 30, 2000. The Russell 2500 Index returned 6.57% for
the same period.
The following commentary has been provided by CHARTWELL INVESTMENT
PARTNERS, co-investment subadviser to the American Odyssey Emerging
Opportunities Fund. Chartwell Investment Partners managed 35% of the Fund as
June 30, 2000.
Due mainly to healthcare and energy stocks, the Russell 2000 out-paced
the S&P 500 for the first half of 2000 with gain of 3.08% versus a 0.52% loss
for the S&P. Both the large cap and small cap healthcare sectors performed well
in the first half of the year, providing ~430 and 230 basis points to the
respective indices. The Russell 2000's healthcare sector's relative
out-performance can be attributed to its heavy exposure to the biotechnology
industry. These companies have garnered increasing attention due to the
prospects for new drug development and the ensuing earnings growth. The Russell
2000's weighting in this sector was ~6.3% versus a less than 1% weighting in the
S&P 500. This industry alone provided ~270 basis points to the overall return
for the first half of the year to the small cap index while the corresponding
industry in the large cap index provided a measly 5 basis points to the return.
Energy was also strong for both indices, providing ~150 and 50 basis points to
the small and large cap indices, respectively. With both oil and gas
fundamentals continuing to improve, the small cap energy sector has benefited
due to its heavy exposure to contract drilling and pure-play exploration and
production companies. The large cap energy sector did not perform as well due to
its heavy weighting in large integrated oil companies, which do not benefit as
much from the fundamental improvement in the commodities. One other significant
characteristic of the first half of 2000 was the increased volatility in the
technology sector. The Russell and S&P's technology sectors provided only ~20
and 85 basis points to the overall first half 2000 return, respectively,
however, volatility within the first half of the year was substantial. The
Russell's tech sector provided 570 basis points of positive contribution to the
total 7.2% gain in the first quarter and ~530 basis points of negative
contribution to the second quarter's loss of ~3.8%. The S&P's tech sector
provided ~410 basis points to the overall 4.1% gain in the first quarter and
~310 basis points of negative contribution to the second quarter's ~2.9% loss.
Spectacular fundamentals along with spectacular stock price performances in the
tech sector in recent quarters have stretched valuations in many cases. With a
series of Fed interest rate hikes and the ensuing slowdown of economic growth,
volatility has increased as the market has been trying to balance high
valuations with strong fundamentals.
The increased valuation sensitivity mentioned above was especially
evident in the performances of the Russell 2000 style indices with the Russell
2000 Growth gaining 1.26% while the value index gained 5.92%. The growth index's
tech sector was the largest source of the relative under-performance, providing
~205 basis points of negative contribution to the return while corresponding
sector provided ~380 basis points of positive contribution to the value index.
The weakness can be attributed to the growth's higher weightings in higher
valuation sectors like internet services, software
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and telecommunications equipment. The strong energy sector was another source of
under-performance for the growth index due to its smaller weighting. Although
both energy sectors performed well, the growth's energy weighting of ~2%
provided ~80 basis points of positive contribution while the value's ~8%
weighting in the sector provided ~260 basis points of positive contribution.
However, the growth index did out-perform its value counterpart in the
healthcare sector with its higher weighting in the bio-technology sector.
Healthcare as a whole provided ~600 basis points of positive contribution to the
growth index's return, of which ~390 basis points was from biotech, while the
corresponding sector in the value index provided ~185 basis points of positive
contribution, of which ~110 basis points was from biotech.
Our overweight position in the technology sector and good stock selection
in the software and semiconductor industries led to a positive contribution of
~520 basis points versus a negative contribution of ~200 basis points by the
corresponding sector to the index. Our largest source of relative
under-performance was the healthcare sector, which provided ~90 basis points of
positive contribution to the overall return versus 600 basis points of positive
contribution by the corresponding sector to the index. The poor relative return
can be attributed to poor stock selection in the healthcare industry services
sector and our underweight position in the valuation insensitive biotechnology
group.
Despite the strong technology performance, our top contributing name to
the six month return was Incyte Pharmaceuticals, a genomics research and
development tool provider. The genomics area has garnered significant investor
attention due to the integral role that genomics are expected to play in drug
development. And due to its leadership position in the space, the stock
performed well. Etek Dynamics, a designer of passive fiber optic components, was
the second largest contributor to the first half return. The acquisition of the
company by JDS Uniphase, a leader in the fiber optic space, was the catalyst for
the strong performance. Mercury Interactive, a provider of software testing
solutions, was the third largest contributor to the first half return. Strong
demand for the company's testing platform led to strong first quarter earnings
growth while the outlook for the company continues to improve.
S1 Corporation, a provider of on-line banking software solutions, was the
worst contributing name to the first half return. The loss of the company's
marquee customer, Citibank, was the reason for the negative reaction. However,
the opportunities for growth remain strong. Allscripts, a provider of medication
management solutions, was the second worst contributing name to the first half
return. Disappointment with the company's acquisition of Channelhealth, a
division of IDX Systems, was the reason for the weakness. Electronics for
Imaging, a provider of high-speed printer controller chips, was our third worst
contributing name to the first half return. The company pre-announced an
earnings miss, which was due to some of its OEM partners delaying some product
launches.
The following commentary has been provided by SG COWEN ASSET MANAGEMENT,
INC., co-investment subadviser to the American Odyssey Emerging Opportunities
Fund. SG Cowen Asset Management, Inc. managed 33% of the Fund as June 30, 2000.
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A significant factor in performance during the second quarter was our
continued overweight in energy (the second best performing sector of the Russell
2000, up 12.8%). Our energy weighting was amplified by strong security
selection, as our most heavily weighted energy stocks advanced 18% on average.
In addition, special situations boosting the portfolio's returns included Mid
Atlantic Medical +42%, Delta and Pine +27%, Cygnus Healthcare +25%, Newport News
Shipbuilding +24% and FirePond Inc. +80%.
A year ago we made the case that many energy companies were inexpensive
relative to oil and gas prices, which were also at record low levels. Today,
with oil and gas prices at near term "highs", several of the stocks in our
portfolio reached our sell valuation targets and we took selected profits in the
quarter. Still, the lack of spending during the 1997-1999 period has created a
favorable supply and demand environment in which OPEC is coming up against
capacity restraints, and non-OPEC supply is struggling to show production gains.
The "big spenders" in the group are only now beginning to feel comfortable
setting budgets based on normalized commodity levels. As a result, select
exploration and production companies that can produce real volume growth, as
well as drillers, service, and equipment companies that can provide niche and
valued-added products will continue to have significant upside.
Having generally avoided the NASDAQ sell off in the spring, we used the
market weakness to buy selected technology (the worst performing sector in the
quarter -- 15.1%, but the second best June performer + 17.8%) and health care
stocks (the best performing group in June + 27% and the quarter + 18.0%). At the
end of the quarter, energy was weighted 23% in the portfolio, followed by 16%
weightings in technology and health care.
As of June 30, 2000, twelve important holdings, representing about 30% of
the portfolio, included:
<TABLE>
<S> <C>
Mid Atlantic Medical Ocean Energy
Readers Digest Pioneer Natural Resources
Newport News Shipbuilding Santa Fe Snyder
Calgon Carbon Edison Schools
Oceaneering Intl. Diebold
Acuson Forest Oil
</TABLE>
Two noteworthy events occurred during the second quarter: (1) the
collapse, at least temporarily, of the Christopher Columbus Pricing Model, and
(2) index rebalancing including Russell 2000 reshuffling.
First, The Christopher Columbus Pricing Model, explained by Revven
Brenner, McGill University economist, Michael Churchhill and Michael Darda, is a
process whereby capital is provided to adventurous startups in spite of unknown
prospects. Our process, "The Search for Companies Poised for Growth", imposes a
valuation discipline that often makes it difficult to invest in a Christopher
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Columbus pricing model company. In periods of stock market correction, and after
business maturation and stock market seasoning, our process allows us to make
more rational investment analysis of these companies. We were able to do that in
the second quarter adding modestly to both health care and technology, with
Cygnus and FirePond as examples.
Indices are important for many comparative purposes and thus are treated
by many like The Ark of the Covenant. As a result, rebalancing an index by
adding some stocks and eliminating others is always a difficult process. In the
spring the Dow Jones was rebalanced, the Nikkei 225 was rebalanced, and the
Russell 2500 was rebalanced in June.
As these indices are being rebalanced one is tempted to ask: For what
purpose? What are the right components for an index? What is the right
benchmark? After indices are rebalanced, portfolio managers run around like
Indiana Jones searching for, or rebalancing to, the "new" Ark of The Covenant.
If Microsoft had not replaced Sears in the Dow Jones rebalancing, that
Index would have made a new high in the spring. The new Nikkei 225 Average is
now 61% weighted to technology and related companies, prompting the Japanese
Ministry of Finance to downplay the Index and telling their staffers to give
more emphasis to the Topix Index (Financial Times, June 13, 2000). The Russell
2500 will now see over 600 new names (163 internet companies up from 64 last
year) after more than 500 new names last year. As important as the new names
are, what about the old names that are being eliminated? While Tokyo Rope (going
out) was certainly not as glamorous as some new nifty tech companies going in to
the Nikkei 225, its drop from 154 Yen to 109 Yen makes one realize how far we've
come from investing in companies for fundamental reasons to the new economy
index and derivatives driven markets. Fundamentals did come to the rescue, and
Tokyo Rope is back to 160 Yen, a new high, even though the Nikkei has not.
We too had a stock in our portfolio in June that was leaving the Russell
2000. Our analysis leads us to believe that the fundamentals are still solid and
thus not only are we holding, but adding to this position. We hope this too will
turn out to be the next Tokyo Rope.
Our portfolio is not driven by a predetermined exposure to indices. Our
process directs capital toward those companies where we see improving
fundamentals or bright spots. Over time, if we are correct, companies' improving
fundamentals will attract additional capital, lifting their share prices. The
low R-squared of our portfolio measures our independent research and portfolio
efforts.
The small cap outperformance wave that started in 1999 continues, and
after years of pessimism, we hope that the drumbeat of negativity in small cap
value is finally behind us. We are excited about the prospects for our portfolio
and look forward optimistically to the future.
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The following commentary has been provided by STATE STREET GLOBAL
ADVISORS, co-investment subadviser to the American Odyssey Emerging
Opportunities Fund. State Street Global Advisors managed 32% of the Fund as June
30, 2000.
The first full month of performance for our Russell 2500 Index portion of
the Emerging Opportunities Fund was June 2000. We avoided significant trading
costs by initially managing an optimized portfolio with approximately 2,300
securities and transitioning to a fully replicated portfolio to coincide with
the Russell Reconstitution on June 30, 2000. The decision to optimize the fund
was dictated by the upcoming annual Russell Reconstitution on June 30, as
increased volatility and high turnover usually mark this period.
The best performing sectors in June were Healthcare (+19.94%) and
Technology (+16.21%). Biotech and Healthcare issues were red hot in June despite
the upcoming presidential election and potential expiration of drug patents.
Healthcare was led by Human Genome Sciences (+51.99%) and Millenium
Pharmaceutical (+33.78%). The Technology sector return for June was 16.21%. The
recent wave of mergers continues to fuel the sector with impressive returns from
SDL Inc. (+25.88%) and E-Tek Dynamics (+43.52%) as JDS Uniphase acquired both
companies.
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AMERICAN ODYSSEY CORE EQUITY FUND
The American Odyssey Core Equity Fund returned -7.36% for the six months
ended June 30, 2000. The S&P 500 Index returned -0.42% for the same period.
The following commentary has been provided by EQUINOX CAPITAL MANAGEMENT,
LLC, co-investment subadviser to the American Odyssey Core Equity Fund. Equinox
Capital Management, LLC managed 58% of the Fund as June 30, 2000.
The first six months of the year continued to be more constructive for
growth investors relative to value investors. Consequently, value-oriented fund
strategies had a tremendous performance challenge relative to the broad market
index of which 31% is comprised of technology stocks that were up approximately
8% during the first six months of the year. In contrast to technology issues,
the hike in interest rates implemented by the Fed had a broad and significant
impact on "value" stocks during the period. Stocks in many sectors, especially
those most sensitive to rising rates including banks, consumer durables, and
housing had a material decline at the end of the six month period, with a
particularly dramatic sell-off in June. The market was also unkind to the stocks
of companies considered vulnerable to a slowing economy. Declines of twenty to
forty percent were not uncommon among the industrially based industries.
Finally, retail stocks underperformed throughout the quarter as investors bet
that spending by shoppers would succumb to falling consumer confidence and a
potentially rising unemployment level.
Similar in construction to other value oriented investment strategies,
the Fund's lesser weight in medical and higher weight in telephones relative to
the style neutral S&P 500 was also responsible for the unfavorable comparison.
The S&P Medical sector appreciated over 20% while the S&P Telephone sector
declined 15% during the first six months of the year.
Consumer staples and medical stocks showed improved returns in the recent
period. Particularly in the staples sector, a renewed fervor for consolidation
has highlighted the truly undervalued franchises of many of these consumer
brands. Pharmaceutical and medical stocks, following a severe sell-off earlier
in the year, recovered significantly toward the end of the second quarter.
There was an almost absurd degree of volatility and illiquidity for many
individual stocks and a major sell-off among some of the portfolio's holdings.
The stocks of many good companies were penalized despite no downward adjustment
to their earnings. Our patience with companies that provide negative fundamental
surprises has become low given the fact that fundamental shortfalls are usually
sequential in this economic environment and stocks are punished unmercifully
when this occurs.
There are two investment initiatives we have employed during the period
to ensure the Fund is well positioned to benefit in the context of a resurgence
of the value style. We have lowered our exposure to both economically sensitive
and the technology sectors and increased the Fund's exposure to
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consumer staples sector given a desire to reduce risk and volatility in the face
of rising interest rates and the threat of a major sell-off in technology.
Secondly, we have focused on qualitative upgrades to better companies in a
sector when the market's volatility presented an opportunity (e.g. reducing our
position in American General Corp and buying Chubb Corp).
Recent reports indicating that the actions by the Fed over the past
twelve months are beginning to have an impact on consumer spending and the
employment rate have caused us to rethink our outlook on further interest rate
increases. While we believe that another 25 basis point hike is quite possible,
we are less inclined to expect another 50 to 75 point rise over the summer
months.
Beyond this shift in outlook our expectations for the economy remain the
same. Strong, albeit slower domestic growth combined with a slightly higher yet
still moderate level of inflation is likely to persist for the remainder of
2000. Consumers will cutback on spending, but global economies will remain a
good source of demand for the goods of our domestic firms (tempered somewhat by
the strength in our currency). Corporate profits will likely grow at ten
percent, or slightly higher, lifted by a modestly greater ability to pass along
higher costs to the customer combined with ongoing opportunities to benefit from
productivity gains.
The following commentary has been provided by PUTNAM INVESTMENT
MANAGEMENT, INC., co-investment subadviser to the American Odyssey Core Equity
Fund. Putnam Investment Management, Inc. managed 22% of the Fund as June 30,
2000.
MAJOR MARKET DEVELOPMENTS:
Notable during the period was the continued recovery of the
technology-laden Nasdaq Composite, which had initially lost nearly 30% in the
second quarter before rebounding to end the period with a loss of 13%. This
slide coincided with the government's ruling against Microsoft in its antitrust
case, which caused the company to lose over 42% of its value before a
quarter-end tech rally boosted the share price.
Responding to signs of robust economic strength, the Federal Reserve
Board raised interest rates during the period; the final 50 basis-point increase
in May equaled the two first-quarter rate hikes combined. By June, a slowdown in
retail sales, coupled with other early indications of a cooling economy, left
the Fed on the sidelines.
While growth stocks continued to lead value stocks in the period, market
preference shifted to the relative stability of large-cap stocks.
PERFORMANCE HIGHLIGHTS:
Stock performance was strong in the technology, health care, and
communications services industries.
Robust stock selection -- particularly in the telecommunications,
biotechnology, medical technology, software and electronics industries -- more
than offset the negative impact of underweight exposure to the strong
health-care sector.
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STRATEGY AND OUTLOOK:
We expect the current economic environment of moderating growth and low
inflation to continue for the rest of 2000. The markets will be closely watched
for any indications of Fed activity.
We are monitoring market volatility, which persists unabated and will
continue to unsettle investors as valuations gyrate both well above and well
below stocks' intrinsic values. In addition, high energy prices have acted as a
tax on the economy, reducing disposable income for consumers and adding pressure
to corporate profit margins. Nevertheless, it is important to remember that the
United States still exhibits low inflation and a strong economy. We continue to
believe that the current environment will reward high-quality growth companies
that are experiencing strong demand for their products and stable or improving
pricing power.
Within the technology sector, we are emphasizing the communications
equipment, semiconductors, and software industries. In communications services,
we are focused on cellular-wireless and telecommunications stocks.
The following commentary has been provided by STATE STREET GLOBAL
ADVISORS, co-investment subadviser to the American Odyssey Core Equity Fund.
State Street Global Advisors managed 20% of the Fund as June 30, 2000.
The best performing sectors for our portion of the Core Equity Fund were
Technology, Health Care and Communication Services. Technology returned 10.0% in
June with strong performances from Corning (+39.9%), Siebel Systems (+39.8%) and
EMC (+32.3%). The Healthcare sector returned 9.4% for June with Eli Lilly
(+31.2%), and St Jude Medical (+27.6%) leading the pack. Communication Services
returned 5.5% for June led by Nextel Communications (+32.2%) and Worldcom
(+21.9).
While the S&P 500 Index posted a 2.47% gain during the month June, it was
down 2.66% in the second quarter, erasing the first quarter's gains, leaving the
index with a year-to-date return of -0.42%. This marks the first time the S&P
500 Index has posted a negative semi-annual return since 1994.
The S&P 500 Index saw some changes in leadership over the past few months
with Technology falling behind Healthcare for the quarter. Technology returned
9.2% while Healthcare posted an index return of 22.7% for the quarter. All the
S&P pharmaceutical companies gained while Microsoft and its well-documented
legal troubles dragged down tech stocks.
The recent moves by the Fed to forgo an additional rate hike at the last
Fed meeting in June suggests that the impact of 3 previous rate hikes this year
are starting to bear fruit in slowing the economy. The perception that the Fed
is nearing the end of its tightening cycle and the minimal impact of US
inflation on the economy may bode well for stocks in the second half of this
year.
We continue to utilize a full replication strategy by owing all 500
stocks in the S&P 500 index. Each security is owned in the approximate
capitalization of the index to maintain consistent tracking.
13
<PAGE> 14
AMERICAN ODYSSEY LONG-TERM BOND FUND
The Long-Term Bond Fund's performance trailed its benchmark returns in
the first half of the year, with a total return of 3.98% vs. 4.13% (Salomon Core
5+) as strategies produced generally positive results. Long Duration exposure
had a modestly positive impact on performance as the decline in short rates was
partially offset by higher long-term rates. Yield curve exposure had a
marginally positive impact on performance since short-term rates declined. Our
allocation to TIPS contributed to performance as strong gains in headline
inflation boosted total returns. Spreads were somewhat higher, particularly at
the lower end of the credit quality scale, so corporate sector exposure had a
negative impact on returns. Mortgage exposure contributed to performance as
spreads in this sector tightened. Overall, emerging market exposure detracted
from performance as spreads widened.
Recent economic data indicates the U.S. economy is finally slowing in
response to tight monetary policy. Signs of weakness are emerging in key
interest-rate sensitive sectors such as housing and durable goods, as well as in
earnings disappointments for banks and consumer staples manufacturers. Moreover,
softer demand and tight labor markets are reflected in a noticeable deceleration
in the growth of private sector employment this year. With tight money limiting
firms' ability to pass along higher input prices, recent hikes in energy costs
will act like a tax on economic activity, accentuating the monetary slowdown
already underway.
WESTERN ASSET MANAGEMENT COMPANY
INVESTMENT SUBADVISER TO THE AMERICAN ODYSSEY LONG-TERM BOND FUND
14
<PAGE> 15
AMERICAN ODYSSEY INTERMEDIATE-TERM BOND FUND
The American Odyssey Intermediate-Term Bond Fund's return for the first
half of the year was 2.39%. The Fund underperformed its benchmark, the Lehman
Intermediate Government/Credit Index (formerly Corporate Intermediate Bond
Index) by 52 bps.
At the beginning of the year, the overheated economy was about to break a
longevity record and showed no signs of slowing down. Conventional wisdom
reflected a 6-month horizon of rising interest rates (due to tight monetary
policy and high-borrowing-cost ability) and decreasing spreads (due to strong
corporate performance and decreased issuance). In reality, interest rates fell
steadily though the first quarter, with an inversion occurring by the end of
January that was 64 basis points steep at the end of March. The general decline
was due in large part to the projection of continued federal surpluses and
associated implementation of a buy-back program that threatened the supply of
riskless bonds. The quality of government bonds amid some credit concerns also
contributed to this phenomenon and, as well, to a lack of demand for spread
product despite decreased supply. Spreads therefore widened on concern over
earnings, rates and credit, although this was essentially just a decoupling of
the credit curve from treasuries. In addition to concentration by the Treasury
on buying back longer debt, two increases by the Fed in the target overnight
lending rate to 6.00% pressured the curve into inversion.
In the second quarter, anticipation of further Fed actions increased
demand and inflationary pressures brought the 10-year rate from below 5.80% to
over 6.50%, where it rested for most of May. The Fed's 50-bp hike and comfort
with soft-landing potential sat in, when it fell to below 6%, where it has
hovered, with the exception of a spike preceding the Fed's June decision to let
rates stand.
The American economy appears headed for this soft landing, characterized
by still-strong but less-extreme advances. Unemployment has hovered around 4%;
housing activity appears to have peaked but not substantially diminished;
consumer spending and confidence, soaring in the first quarter, took a breather
in the second. The dollar remains strong, and while this contributes to the wide
trade gap, it is keeping inflation in check. Oil has been in the $30 range most
of the year, making gas prices the only prominent inflation factor so far, but
consumers have shown elasticity in that area, and non-energy commodity prices
have crept as well, two signs that hint at second-half inflationary pressure.
The rest of the world's economies have seen decent growth in 2000: Canada
and Mexico have overheating concerns similar to those of the US; the EU, while
struggling with the imbalance of 11 fiscal policies and one monetary policy, has
seen reasonable growth amid merger activity similar to that in America in the
late 90s; and Latin America and Asia have continued to rebound firmly, with the
outlook for even Japanese interest rates to finally rise.
15
<PAGE> 16
Due to the increased proportion of consumers who own stocks, the
increased reliance of an aging population on assets over income, and the
reliance by employers on options to subsidize wages, the performance of equities
will continue to play a more important role in monetary policy and spread
product performance. Most stock indices were relatively flat for the first half
of the year, bringing trailing 12-month returns closer to historic averages than
the stellar performances seen in the latter part of the last decade. If moderate
growth is seen in these markets, there is reason to believe that the current
expansion will carry forward into 2001.
The Fund's underperformance has been driven by financial (Finova) and
retail (Saks) exposure and an overweight position in corporate bonds versus
treasuries, which has hurt due to spread widenings. We expect the recent
reversal of these unprecedented widenings to continue in the second half of the
year, thereby neutralizing the Fund's difference to the benchmark.
TRAVELERS ASSET MANAGEMENT INTERNATIONAL COMPANY LLC
INVESTMENT SUBADVISER TO THE AMERICAN ODYSSEY INTERMEDIATE-TERM BOND FUND
16
<PAGE> 17
This Page Intentionally Left Blank
17
<PAGE> 18
Statements of Assets and Liabilities
American Odyssey Funds, Inc. / June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Global Emerging Intermediate-
High-Yield International Opportunities Core Equity Long-Term Term
Bond Fund Equity Fund Fund Fund Bond Fund Bond Fund
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in
securities, at
cost ................ 98,490,760 305,562,496 367,213,167 422,834,568 280,582,886 133,904,198
------------- ------------- ------------- ------------- ------------- -------------
Investments in
securities, at value
(see accompanying
Portfolio of
Investments) (Note 2) . $ 88,521,041 $ 385,486,609 $ 416,506,057 $ 445,162,026 $ 271,289,239 $ 131,060,804
Cash .................... 10,970,602 14,182,407 13,748,556 29,358,991 4,540,316 29,338
Cash, denominated in
foreign currency
(cost, $1,815,555) .... -- 1,440,837 -- -- -- --
Receivables for:
Investment securities
sold ................ -- 1,030,974 5,207,882 1,527,443 3,439,759 5,884,475
Unrealized appreciation
on forward foreign
currency contracts
(Note 8) ............ 4,916 112,533 -- -- -- --
Interest .............. 2,263,438 84,560 115,942 100,905 3,339,318 2,346,480
Dividends ............. -- 221,339 223,874 678,170 -- --
Foreign tax reclaims .. -- 487,121 5,388 829 -- --
Variation margin on
open futures
contracts
(Note 6) ............ -- -- -- 25,250 -- --
Prepaid expenses ........ -- -- 57,672 65,407 -- --
------------- ------------- ------------- ------------- ------------- -------------
Total assets .......... 101,759,997 403,046,380 435,865,371 476,919,021 282,608,632 139,321,097
------------- ------------- ------------- ------------- ------------- -------------
LIABILITIES
Payables for:
Investment securities
purchased ........... 1,065,321 1,112,659 4,000,140 9,935,044 -- 5,793,897
Delayed delivery
transactions
(Note 9) ............ -- -- -- -- 12,754,342 --
Payable upon return of
securities loaned
(Note 2) ............ 1,139,500 26,182,985 36,401,841 9,142,232 3,137,360 --
Unrealized depreciation
on forward foreign
currency contracts
(Note 8) ............ -- 54,281 -- -- -- --
Variation margin on
open futures
contracts
(Note 6) ............ 12,109 -- 13,650 -- 14,500 --
Options written
(premiums received
$ 166,695)
(Note 7) ............ -- -- -- -- 190,562 --
Payable to Adviser ...... 54,330 179,695 165,640 270,800 105,806 52,916
Accrued expenses ........ 40,413 23,212 8,444 12,047 27,049 24,660
------------- ------------- ------------- ------------- ------------- -------------
Total liabilities ..... 2,311,673 27,552,832 40,589,715 19,360,123 16,229,619 5,871,473
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS .............. $ 99,448,324 $ 375,493,548 $ 395,275,656 $ 457,558,898 $ 266,379,013 $ 133,449,624
============= ============= ============= ============= ============= =============
Capital shares
outstanding ........... 10,673,279 17,651,417 22,596,041 30,034,082 26,800,861 13,320,155
============= ============= ============= ============= ============= =============
Net asset value per
share ................. $ 9.32 $ 21.27 $ 17.49 $ 15.23 $ 9.94 $ 10.02
============= ============= ============= ============= ============= =============
COMPOSITION OF NET ASSETS
Capital shares at par ... $ 106,733 $ 176,514 $ 225,960 $ 300,341 $ 268,009 $ 133,202
Additional
paid-in-capital ....... 109,027,771 236,691,696 283,532,604 418,685,486 274,465,708 135,690,071
Undistributed net
investment income
(distributions in
excess of net
investment income) .... 4,737,010 2,457,319 (298,982) 2,358,453 9,290,233 4,286,588
Accumulated net realized
gain (loss) on
investments, futures
contracts, option
contracts and foreign
currency
transactions .......... (4,420,352) 56,568,240 62,638,668 13,946,835 (8,170,096) (3,816,843)
Net unrealized
appreciation
(depreciation) on
investments,
translation of assets
and liabilities in
foreign currencies,
futures contracts and
option contracts ...... (10,002,838) 79,599,779 49,177,406 22,267,783 (9,474,841) (2,843,394)
------------- ------------- ------------- ------------- ------------- -------------
$ 99,448,324 $ 375,493,548 $ 395,275,656 $ 457,558,898 $ 266,379,013 $ 133,449,624
============= ============= ============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE> 19
Statements of Operations
American Odyssey Funds, Inc. / For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Global Emerging Intermediate-
High-Yield International Opportunities Core Equity Long-Term Term
Bond Fund Equity Fund Fund Fund Bond Fund Bond Fund
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ............... $ -- $ 3,206,815(1) $ 214,140(2) $ 3,416,218(3) $ 35,000 $ --
Interest ................ 5,397,054 256,898 907,649 359,497 10,021,814 4,672,164
------------ ------------ ------------ ------------ ------------ ------------
Total Income .......... 5,397,054 3,463,713 1,121,789 3,775,715 10,056,814 4,672,164
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES
Management fees
(Note 3) .............. 328,110 1,083,478 1,353,657 1,296,859 639,514 318,976
Audit fees .............. 8,354 8,354 7,309 7,309 7,558 7,559
Director's fees &
expenses .............. 4,583 17,667 16,396 22,302 12,320 6,297
Custodian fees .......... 44,905 173,519 117,861 122,329 84,241 40,947
Legal fees .............. 2,355 9,078 8,425 11,459 6,330 3,236
Printing expense ........ 3,680 14,089 13,053 17,945 9,886 5,045
Miscellaneous expense ... 1,887 6,291 5,130 10,067 5,298 2,783
------------ ------------ ------------ ------------ ------------ ------------
Total expenses before
directed brokerage
arrangements ........ 393,874 1,312,476 1,521,831 1,488,270 765,147 384,843
------------ ------------ ------------ ------------ ------------ ------------
Less:
Expenses paid under
directed brokerage
arrangements
(Note 4) .............. -- (21,849) (45,963) (72,717) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total expense
reductions ............ -- (21,849) (45,963) (72,717) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net expenses .......... 393,874 1,290,627 1,475,868 1,415,553 765,147 384,843
------------ ------------ ------------ ------------ ------------ ------------
Net investment income
(loss) ............ 5,003,180 2,173,086 (354,079) 2,360,162 9,291,667 4,287,321
------------ ------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain
(loss) on security
transactions, futures
contracts and option
contracts ........... 944,086 56,169,986 66,671,763 17,452,222 (820,207) (757,105)
Net realized gain
(loss) on foreign
currency
transactions ........ (3,744) 400,073 -- -- -- --
Net increase (decrease)
in unrealized
appreciation of
investments, futures
contracts and option
contracts ........... (6,059,777) (60,381,801) (23,525,343) (54,232,307) 1,713,489 (417,189)
Net change in
unrealized
appreciation
(depreciation) of
foreign currency
transactions ........ 4,916 661,069 -- -- (393) --
------------ ------------ ------------ ------------ ------------ ------------
Net realized and
unrealized gain
(loss) on
investments ....... (5,114,519) (3,150,673) 43,146,420 (36,780,085) 892,889 (1,174,294)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets from
operations .......... $ (111,339) $ (977,587) $ 42,792,341 $(34,419,923) $ 10,184,556 $ 3,113,027
============ ============ ============ ============ ============ ============
</TABLE>
(1) Net of foreign taxes withheld of $462,856.
(2) Net of foreign taxes withheld of $13,566.
(3) Net of foreign taxes withheld of $1,537.
The accompanying notes are an integral part of the financial statements.
19
<PAGE> 20
Statements of Changes in Net Assets
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Global High-Yield Bond Fund International Equity Fund
-------------------------------- --------------------------------
Period ended Year ended Period ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net investment income
(loss) ................ $ 5,003,180 $ 9,069,643 $ 2,173,086 $ 2,938,883
Net realized gain (loss)
on security
transactions, futures
contracts, option
contracts and foreign
currency
transactions .......... 940,342 (161,844) 56,570,059 19,987,247
Net increase (decrease)
in unrealized
appreciation
(depreciation) of
investments, futures
contracts, option
contracts and foreign
currency
transactions .......... (6,054,861) 137,045 (59,720,732) 73,581,147
------------- ------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations .......... (111,339) 9,044,844 (977,587) 96,507,277
------------- ------------- ------------- -------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment
income ................ (9,390,571) (5,442,107) (3,087,405) --
From net realized gains
on investment
transactions .......... -- -- (14,100,382) --
------------- ------------- ------------- -------------
Total distributions to
shareholders ........ (9,390,571) (5,442,107) (17,187,787) --
------------- ------------- ------------- -------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sales of
shares ................ 6,859,766 11,770,533 20,442,686 37,055,222
Distributions
reinvested ............ 9,390,571 5,442,107 17,187,787 --
Cost of shares
repurchased ........... (3,921,767) (6,201,785) (32,463,873) (45,141,918)
Net increase (decrease)
from capital share
transactions ........ 12,328,570 11,010,855 5,166,600 (8,086,696)
------------- ------------- ------------- -------------
Net increase (decrease)
in net assets ......... 2,826,660 14,613,592 (12,998,774) 88,420,581
------------- ------------- ------------- -------------
NET ASSETS
Beginning of period ..... 96,621,664 82,008,072 388,492,322 300,071,741
------------- ------------- ------------- -------------
End of period ........... $ 99,448,324 $ 96,621,664 $ 375,493,548 $ 388,492,322
============= ============= ============= =============
Undistributed net
investment income
(distributions in
excess of net
investment income) .... $ 4,737,010 $ 9,124,401 $ 2,457,319 $ 3,371,638
============= ============= ============= =============
CAPITAL SHARES
Capital shares
outstanding, beginning
of year ............... 9,382,126 8,265,528 17,396,094 17,809,092
Capital shares issued ... 666,930 1,172,084 934,924 2,008,249
Capital shares from
distributions
reinvested ............ 1,006,492 554,751 813,816 --
Capital shares
redeemed .............. (382,269) (610,237) (1,493,417) (2,421,247)
------------- ------------- ------------- -------------
Capital shares
outstanding, end of
year .................. 10,673,279 9,382,126 17,651,417 17,396,094
============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE> 21
Statements of Changes in Net Assets
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Emerging Opportunities Fund Core Equity Fund Long-Term Bond Fund
------------------------------- ------------------------------ -------------------------------
Period ended Year ended Period ended Year ended Period ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net investment income
(loss) ................ $ (354,079) $ (940,032) $ 2,360,162 $ 5,739,749 $ 9,291,667 $ 15,965,831
Net realized gain (loss)
on security
transactions, futures
contracts, option
contracts and foreign
currency
transactions .......... 66,671,763 17,511,829 17,452,222 21,659,887 (820,207) (7,494,141)
Net increase (decrease)
in unrealized
appreciation
(depreciation) of
investments, futures
contracts, option
contracts and foreign
currency
transactions .......... (23,525,343) 84,620,566 (54,232,307) (27,761,775) 1,713,096 (15,331,895)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease)
in net assets
resulting from
operations .......... 42,792,341 101,192,363 (34,419,923) (362,139) 10,184,556 (6,860,205)
------------- ------------- ------------- ------------- ------------- -------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment
income ................ -- -- (5,740,181) (6,078,603) (16,205,676) (14,567,381)
From net realized gains
on investment
transactions .......... (18,464,201) (25,671,500) (24,676,051) (65,203,554) -- (6,872,189)
------------- ------------- ------------- ------------- ------------- -------------
Total distributions to
shareholders ........ (18,464,201) (25,671,500) (30,416,232) (71,282,157) (16,205,676) (21,439,570)
------------- ------------- ------------- ------------- ------------- -------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sales of
shares ................ 132,627,541 37,091,677 45,950,063 44,663,905 19,202,917 33,031,799
Distributions
reinvested ............ 18,464,201 25,671,500 30,416,232 71,282,157 16,205,676 21,439,570
Cost of shares
repurchased ........... (153,782,554) (32,975,517) (24,388,607) (46,837,663) (17,376,030) (26,168,840)
Net increase (decrease)
from capital share
transactions ........ (2,690,812) 29,787,660 51,977,688 69,108,399 18,032,563 28,302,529
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease)
in net assets ......... 21,637,328 105,308,523 (12,858,467) (2,535,897) 12,011,443 2,754
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS
Beginning of period ..... 373,638,328 268,329,805 470,417,365 472,953,262 254,367,570 254,364,816
------------- ------------- ------------- ------------- ------------- -------------
End of period ........... $ 395,275,656 $ 373,638,328 $ 457,558,898 $ 470,417,365 $ 266,379,013 $ 254,367,570
============= ============= ============= ============= ============= =============
Undistributed net
investment income
(distributions in
excess of net
investment income) .... $ (298,982) $ 55,097 $ 2,358,453 $ 5,738,472 $ 9,290,233 $ 16,204,242
============= ============= ============= ============= ============= =============
CAPITAL SHARES
Capital shares
outstanding, beginning
of year ............... 22,758,704 20,493,456 26,709,805 22,953,325 24,991,095 22,145,289
Capital shares issued ... 7,698,624 2,777,931 2,828,118 2,346,314 1,860,638 3,132,985
Capital shares from
distributions
reinvested ............ 1,056,909 1,903,002 1,994,500 3,765,566 1,633,637 2,133,290
Capital shares
redeemed .............. (8,918,196) (2,415,685) (1,498,341) (2,355,400) (1,684,509) (2,420,469)
------------- ------------- ------------- ------------- ------------- -------------
Capital shares
outstanding, end of
year .................. 22,596,041 22,758,704 30,034,082 26,709,805 26,800,861 24,991,095
============= ============= ============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
Intermediate-Term Bond Fund
------------------------------------
Period ended Year ended
June 30, 2000 December 31,
(Unaudited) 1999
------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net investment income
(loss) ................ $ 4,287,321 $ 7,391,071
Net realized gain (loss)
on security
transactions, futures
contracts, option
contracts and foreign
currency
transactions .......... (757,105) (3,059,738)
Net increase (decrease)
in unrealized
appreciation
(depreciation) of
investments, futures
contracts, option
contracts and foreign
currency
transactions .......... (417,189) (2,404,548)
------------- -------------
Net increase (decrease)
in net assets
resulting from
operations .......... 3,113,027 1,926,785
------------- -------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment
income ................ (7,391,076) (6,579,835)
From net realized gains
on investment
transactions .......... -- (3,746,306)
------------- -------------
Total distributions to
shareholders ........ (7,391,076) (10,326,141)
------------- -------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sales of
shares ................ 10,674,465 17,720,772
Distributions
reinvested ............ 7,391,076 10,326,141
Cost of shares
repurchased ........... (11,461,145) (14,882,803)
Net increase (decrease)
from capital share
transactions ........ 6,604,396 13,164,110
------------- -------------
Net increase (decrease)
in net assets ......... 2,326,347 4,764,754
------------- -------------
NET ASSETS
Beginning of period ..... 131,123,277 126,358,523
------------- -------------
End of period ........... $ 133,449,624 $ 131,123,277
============= =============
Undistributed net
investment income
(distributions in
excess of net
investment income) .... $ 4,286,588 $ 7,390,343
============= =============
CAPITAL SHARES
Capital shares
outstanding, beginning
of year ............... 12,658,199 11,356,645
Capital shares issued ... 1,021,905 1,678,567
Capital shares from
distributions
reinvested ............ 738,369 1,012,367
Capital shares
redeemed .............. (1,098,318) (1,389,380)
------------- -------------
Capital shares
outstanding, end of
year .................. 13,320,155 12,658,199
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statement.
21
<PAGE> 22
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Global High-Yield Bond Fund
-------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 -------------------------------------------------------------------------------
(Unaudited) 1999 1998(1) 1997 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 10.30 $ 9.92 $ 10.31 $ 10.24 $ 10.22 $ 9.68
---------- ---------- ---------- ---------- ---------- ----------
OPERATIONS
Net investment
income(2) ........... 0.44 0.96 0.66 0.55 0.37 0.51
Net realized and
unrealized gain
(loss) on
investments ......... (0.45) 0.07 (1.05) 0.08 0.02 0.54
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations .......... (0.01) 1.03 (0.39) 0.63 0.39 1.05
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.97) (0.65) (0.00) (0.56) (0.37) (0.51)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ... (0.97) (0.65) (0.00) (0.56) (0.37) (0.51)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE
End of period ......... $ 9.32 $ 10.30 $ 9.92 $ 10.31 $ 10.24 $ 10.22
========== ========== ========== ========== ========== ==========
TOTAL RETURN(3) ......... (0.09)% 10.68% (3.76)% 6.11% 3.80% 10.86%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 99,448 $ 96,622 $ 82,008 $ 58,821 $ 48,673 $ 25,855
Ratios of expenses to
average net assets:
Before
repayments/reimbursements
and directed
brokerage
arrangements ...... 0.81%(4) 0.83% 0.78% 0.66% 0.68% 0.76%
After
repayments/reimbursements
and before directed
brokerage
arrangements ...... 0.81%(4) 0.83% 0.78%(5) 0.74%(5) 0.75%(5) 0.75%(5)
After
repayments/reimbursements
and directed
brokerage
arrangements(6) ... 0.81%(4) 0.83% 0.78% 0.74% 0.75% 0.75%
Ratios of net
investment income to
average net assets:
Before
repayments/reimbursements
and directed
brokerage
arrangements ...... 10.29%(4) 10.25% 7.56% 5.53% 5.54% 5.77%
After
repayments/reimbursements
and directed
brokerage
arrangements ...... 10.29%(4) 10.25% 7.56% 5.45% 5.47% 5.78%
Portfolio turnover
rate ................ 30.69% 45.15% 193.04% 200.78% 154.51% 93.37%
</TABLE>
--------------------------------------------------------------------------------
(1) Prior to May 1, 1998, the Global High-Yield Bond Fund was named the
Short-Term Bond Fund and had a substantially different investment objective
and investment program.
(2) Net of expense reimbursements, repayments and direct brokerage
arrangements.
(3) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(4) Annualized.
(5) Unaudited.
(6) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the expense limitation.
The accompanying notes are an integral part of the financial statements.
22
<PAGE> 23
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
International Equity Fund
-------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 -------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 22.33 $ 16.85 $ 15.48 $ 15.08 $ 12.68 $ 10.76
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Net investment
income(1) ........... 0.13 0.17 0.09 0.57 0.29 0.17
Net realized and
unrealized gain
(loss) on
investments ......... (0.17) 5.31 2.21 0.19 2.48 1.87
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .......... (0.04) 5.48 2.30 0.76 2.77 2.04
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.18) -- (0.31) (0.24) (0.30) (0.12)
Distributions from net
realized gains on
investments ......... (0.84) -- (0.62) (0.06) (0.07) --
Distributions in excess
of net investment
income or realized
gains ............... -- -- -- (0.06) -- --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ... (1.02) -- (0.93) (0.36) (0.37) (0.12)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE
End of period ......... $ 21.27 $ 22.33 $ 16.85 $ 15.48 $ 15.08 $ 12.68
=========== =========== =========== =========== =========== ===========
TOTAL RETURN(2) ......... 0.14% 32.52% 14.91% 5.04% 21.93% 19.00%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 375,494 $ 388,492 $ 300,072 $ 236,571 $ 187,109 $ 92,115
Ratios of expenses to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 0.71%(3) 0.72% 0.73% 0.79% 0.86% 1.00%
After repayments/
reimbursements
and before directed
brokerage
arrangements ...... 0.71%(3) 0.72% 0.73%(4) 0.79%(4) 0.86%(4) 1.09%(4)
After repayments/
reimbursements
and directed
brokerage
arrangements(5) ... 0.70%(3) 0.71% 0.72% 0.77% 0.83% 1.08%
Ratios of net
investment income to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 1.16%(3) 0.90% 1.22% 1.61% 1.51% 1.70%
After repayments/
reimbursements
and directed
brokerage
arrangements ...... 1.17%(3) 0.91% 1.23% 1.63% 1.54% 1.62%
Portfolio turnover
rate ................ 8.51% 18.36% 20.65% 23.08% 21.54% 31.40%
</TABLE>
--------------------------------------------------------------------------------
(1) Net of expense reimbursements, repayments and directed brokerage
arrangements.
(2) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(3) Annualized.
(4) Unaudited.
(5) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/ reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the limitation.
The accompanying notes are an integral part of the financial statements.
23
<PAGE> 24
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Emerging Opportunities Fund
--------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 --------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 16.42 $ 13.09 $ 14.33 $ 13.42 $ 15.02 $ 11.84
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Net investment
loss(1) ............. (0.01) (0.04) -- -- -- --
Net realized and
unrealized gain
(loss) on
investments ......... 1.94 4.58 (1.24) 0.91 (0.47) 3.81
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .......... 1.93 4.54 (1.24) 0.91 (0.47) 3.81
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.86) -- -- -- -- --
Distributions from net
realized gains on
investments ......... -- (1.21) -- -- (1.13) (0.58)
Distributions in excess
of net investment
income or realized
gains ............... -- -- -- -- -- (0.05)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ... (0.86) (1.21) -- -- (1.13) (0.63)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE
End of period ......... $ 17.49 $ 16.42 $ 13.09 $ 14.33 $ 13.42 $ 15.02
=========== =========== =========== =========== =========== ===========
TOTAL RETURN(2) ......... 11.74% 36.71% (8.65)% 6.78% (3.03)% 32.23%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 395,276 $ 373,638 $ 268,330 $ 258,886 $ 171,278 $ 157,193
Ratios of expenses to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 0.78%(3) 0.87% 0.87% 0.86% 0.72% 0.77%
After repayments/
reimbursements
and before directed
brokerage
arrangements ...... 0.78%(3) 0.87% 0.87%(4) 0.86%(4) 0.72%(4) 0.77%(4)
After repayments/
reimbursements
and directed
brokerage
arrangements(5) ... 0.76%(3) 0.83% 0.86% 0.86% 0.72% 0.77%
Ratios of net
investment income to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... (0.20)%(3) (0.36)% (0.23)% (0.20)% (0.34)% (0.26)%
After repayments/
reimbursements
and directed
brokerage
arrangements ...... (0.18)%(3) (0.32)% (0.22)% (0.20)% (0.34)% (0.26)%
Portfolio turnover
rate ................ 99.99% 113.01% 138.02% 80.36% 43.00% 36.02%
</TABLE>
--------------------------------------------------------------------------------
(1) Net of expense reimbursements, repayments and directed brokerage
arrangements.
(2) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(3) Annualized
(4) Unaudited.
(5) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the expense limitation.
The accompanying notes are an integral part of the financial statements.
24
<PAGE> 25
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Core Equity Fund
--------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 --------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 17.61 $ 20.61 $ 19.93 $ 15.49 $ 13.32 $ 10.06
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Net investment
income(1) ........... 0.06 0.22 0.26 0.24 0.26 0.25
Net realized and
unrealized gain
(loss) on
investments ......... (1.36) (0.06) 2.82 4.65 2.83 3.63
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .......... (1.30) 0.16 3.08 4.89 3.09 3.88
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.20) (0.27) (0.00) (0.24) (0.27) (0.24)
Distributions from net
realized gains on
investments ......... (0.88) (2.89) (2.40) (0.21) (0.65) (0.37)
Distributions in excess
of net investment
income or realized
gains ............... -- -- -- -- -- (0.01)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ... (1.08) (3.16) (2.40) (0.45) (0.92) (0.62)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE
End of period ......... $ 15.23 $ 17.61 $ 20.61 $ 19.93 $ 15.49 $ 13.32
=========== =========== =========== =========== =========== ===========
TOTAL RETURN(2) ......... (7.36)% (0.28)% 15.54% 31.67% 23.20% 38.56%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 457,559 $ 470,417 $ 472,953 $ 414,698 $ 273,772 $ 183,735
Ratios of expenses to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 0.68%(3) 0.64% 0.65% 0.67% 0.68% 0.72%
After repayments/
reimbursements
and before directed
brokerage
arrangements ...... 0.68%(3) 0.64% 0.65%(4) 0.67%(4) 0.68%(4) 0.72%(4)
After repayments/
reimbursements
and directed
brokerage
arrangements(5) ... 0.65%(3) 0.62% 0.61% 0.65% 0.66% 0.70%
Ratios of net
investment income to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 1.05%(3) 1.17% 1.30% 1.36% 1.93% 2.32%
After repayments/
reimbursements
and directed
brokerage
arrangements ...... 1.08%(3) 1.19% 1.34% 1.38% 1.95% 2.33%
Portfolio turnover
rate ................ 20.51% 56.15% 51.52% 45.54% 45.73% 38.44%
</TABLE>
--------------------------------------------------------------------------------
(1) Net of expense reimbursements, repayments and directed brokerage
arrangements.
(2) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(3) Annualized.
(4) Unaudited.
(5) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the expense limitation.
The accompanying notes are an integral part of the financial statements.
25
<PAGE> 26
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Long-Term Bond Fund
--------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 --------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 10.18 $ 11.49 $ 10.74 $ 10.15 $ 10.53 $ 9.37
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Net investment
income(1) ........... 0.34 0.65 0.66 0.61 0.50 0.53
Net realized and
unrealized gain
(loss) on
investments ......... 0.06 (0.98) 0.31 0.61 (0.36) 1.57
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .......... 0.40 (0.33) 0.97 1.22 0.14 2.10
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.64) (0.67) (0.01) (0.62) (0.52) (0.57)
Distributions from net
realized gains on
investments ......... -- (0.31) (0.21) (0.01) -- (0.27)
Distributions in excess
of net investment
income or realized
gains ............... -- -- -- -- -- (0.10)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ... (0.64) (0.98) (0.22) (0.63) (0.52) (0.94)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE
End of period ......... $ 9.94 $ 10.18 $ 11.49 $ 10.74 $ 10.15 $ 10.53
=========== =========== =========== =========== =========== ===========
TOTAL RETURN(2) ......... 3.98% (2.74)% 9.04% 12.01% 1.34% 22.44%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 266,379 $ 254,368 $ 254,365 $ 218,854 $ 160,695 $ 114,612
Ratios of expenses to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 0.59%(3) 0.60% 0.60% 0.62% 0.63% 0.66%
After repayments/
reimbursements
and before directed
brokerage
arrangements ...... 0.59%(3) 0.60% 0.60%(4) 0.62%(4) 0.63%(4) 0.70%(4)
After repayments/
reimbursements
and directed
brokerage
arrangements(5) ... 0.59%(3) 0.60% 0.60% 0.62% 0.63% 0.70%
Ratios of net
investment income to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 7.22%(3) 6.41% 5.96% 6.22% 5.88% 6.67%
After repayments/
reimbursements
and directed
brokerage
arrangements ...... 7.22%(3) 6.41% 5.96% 6.22% 5.88% 6.63%
Portfolio turnover
rate ................ 56.66% 81.29% 224.48% 358.67% 369.32% 381.53%
</TABLE>
--------------------------------------------------------------------------------
(1) Net of expense reimbursements, repayments and directed brokerage
arrangements.
(2) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(3) Annualized.
(4) Unaudited.
(5) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/ reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the expense limitation.
The accompanying notes are an integral part of the financial statements.
26
<PAGE> 27
Financial Highlights
American Odyssey Funds, Inc.
<TABLE>
<CAPTION>
Intermediate-Term Bond Fund
--------------------------------------------------------------------------------------------------
Period
ended Year ended December 31,
June 30, 2000 --------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ... $ 10.36 $ 11.13 $ 10.31 $ 10.20 $ 10.38 $ 9.61
----------- ----------- ----------- ----------- ----------- -----------
OPERATIONS
Net investment
income(1) ........... 0.33 0.59 0.58 0.59 0.61 0.54
Net realized and
unrealized gain on
investments ......... (0.08) (0.44) 0.29 0.17 (0.20) 0.90
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .......... 0.25 0.15 0.87 0.76 0.41 1.44
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income ... (0.59) (0.59) (0.00) (0.60) (0.59) (0.55)
Distributions from net
realized gains on
investments ......... -- (0.33) (0.05) (0.05) -- (0.07)
Distributions in excess
of net investment
income or realized
gains ............... -- -- -- -- -- (0.05)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ... (0.59) (0.92) (0.05) (0.65) (0.59) (0.67)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE
End of period ......... $ 10.02 $ 10.36 $ 11.13 $ 10.31 $ 10.20 $ 10.38
=========== =========== =========== =========== =========== ===========
TOTAL RETURN(2) ......... 2.39% 1.50% 8.48% 7.50% 3.95% 15.01%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of
period (000's
omitted) ............ $ 133,450 $ 131,123 $ 126,359 $ 108,596 $ 86,385 $ 73,480
Ratios of expenses to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 0.59%(3) 0.59% 0.60% 0.63% 0.66% 0.68%
After repayments/
reimbursements
and before directed
brokerage
arrangements ...... 0.59%(3) 0.59% 0.60%(4) 0.63%(4) 0.66%(4) 0.75%(4)
After repayments/
reimbursements
and directed
brokerage
arrangements(5) ... 0.59%(3) 0.59% 0.60% 0.63% 0.66% 0.75%
Ratios of net
investment income to
average net assets:
Before repayments/
reimbursements
and directed
brokerage
arrangements ...... 6.56%(3) 5.83% 5.50% 5.90% 5.77% 6.19%
After repayments/
reimbursements
and directed
brokerage
arrangements ...... 6.56%(3) 5.83% 5.50% 5.90% 5.77% 6.11%
Portfolio turnover
rate ................ 49.92% 317.23% 407.24% 215.97% 191.20% 137.14%
</TABLE>
--------------------------------------------------------------------------------
(1) Net of expense reimbursements, repayments and directed brokerage
arrangements.
(2) Total return is calculated assuming an initial investment made at net asset
value at the beginning of the period, all dividends and distributions are
reinvested and redemption on the last day of the period. Total Returns do
not reflect charges attributable to separate account expenses deducted by
the insurance company for variable annuity contract shareholders. Inclusion
of these charges would reduce the total return shown.
(3) Annualized.
(4) Unaudited.
(5) The after repayments/reimbursements and directed brokerage arrangements
figure may be greater than the before repayments/ reimbursements and
directed brokerage arrangements figure because of repayments by the Fund to
the Manager once the Fund is operating below the expense limitation.
The accompanying notes are an integral part of the financial statements.
27
<PAGE> 28
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
FOREIGN OBLIGATIONS -- 30.6%
Corporate Debt -- 15.4%
$ 400,000 Ainsworth Lumber Co., Yankee-Dollar
(PIK)
12.500%, 07/15/07....................... $ 408,000
250,000 Algoma Steel, Inc., Yankee-Dollar
12.375%, 07/15/05....................... 217,500
350,000 Avecia Group Plc, Yankee-Dollar
11.000%, 07/01/09....................... 344,750
200,000 Banco Nacional Comerico Exterior SNC
7.250%, 02/02/04........................ 190,000
350,000 Call-Net Enterprises, Inc.,
Yankee-Dollar
8.000%, 08/15/08........................ 210,000
250,000 Call-Net Enterprises, Inc.,
Yankee-Dollar, Step Up
8.940%, 08/15/08........................ 101,250
200,000 Canadian Airlines Corp., Yankee-Dollar
10.000%, 05/01/05....................... 210,000
200,000 Canadian Airlines Corp., Yankee-Dollar
12.250%, 08/01/06....................... 29,000
250,000 Canadian Forest Oil Ltd.
8.750%, 09/15/07........................ 236,250
400,000 Cenargo International Plc, Yankee-Dollar
9.750%, 06/15/08........................ 317,000
505,000 Cho Hung Bank Co.
11.500%, 04/01/10....................... 487,325
750,000 City of St Petersburg, 144A
9.500%, 06/18/02........................ 635,625
500,000 Clearnet Communications, Inc.,
Yankee-Dollar, Step Up
14.750%, 12/15/05....................... 511,875
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 240,000 Compania Internacional de
Telecomunicaciones SA
10.375%, 08/01/04....................... $ 208,800
500,000 Diamond Cable Communications Plc,
Yankee-Dollar, Step Up
10.750%, 02/15/07....................... 385,000
500,000 Dolphin Telecom Plc, Yankee-Dollar,
Step Up
11.500%, 06/01/08....................... 157,500
350,000 Doman Industries Ltd., Yankee-Dollar
8.750%, 03/15/04........................ 269,500
200,000 Energis Plc
9.750%, 06/15/09........................ 197,000
250,000 GT Group Telecommunications, Inc.
0.000%, 02/01/10 (b).................... 140,000
350,000 Hermes Euro Rail, Yankee-Dollar
11.500%, 08/15/07....................... 286,125
343,200 Hidroelec Piedra del Aguila SA
8.000%, 12/31/09........................ 235,950
635,163 Hidroelec Piedra del Aguila SA
8.250%, 06/30/09........................ 398,564
400,000 HMV Media Group Plc Series B,
Yankee-Dollar
10.250%, 05/15/08....................... 268,000
300,000 Imax Corp., Yankee-Dollar
7.875%, 12/01/05........................ 277,500
400,000 International Utility Structures,
Yankee-Dollar
10.750%, 02/01/08....................... 330,000
250,000 Intrawest Corp., Yankee-Dollar
9.750%, 08/15/08........................ 248,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE> 29
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 500,000 MetroNet Communications Corp.,
Yankee-Dollar, Step Up
9.950%, 06/15/08........................ $ 405,560
500,000 Microcell Telecommunication, Inc.
Series B, Yankee-Dollar, Step Up
14.000%, 06/01/06....................... 460,000
400,000 Millar Western Forest Products,
Yankee-Dollar
9.875%, 05/15/08........................ 376,000
125,000 Netia Holdings BV
(EUR) 13.750%, 06/15/10....................... 119,824
250,000 Norampac, Inc., Yankee-Dollar
9.500%, 02/01/08........................ 242,500
110,000 Nuevo Grupo Iusacell SA, 144A
14.250%, 12/01/06....................... 115,225
110,000 PTC International Finance II SA
(EUR) 11.250%, 12/01/09....................... 104,700
400,000 Regional Independent Media,
Yankee-Dollar
10.500%, 07/01/08....................... 402,000
400,000 Repap New Brunswick, Yankee-Dollar
10.625%, 04/15/05....................... 352,000
250,000 RSL Communications Plc, Yankee-Dollar
10.500%, 11/15/08....................... 173,750
400,000 Sea Containers, Inc.
10.750%, 10/15/06....................... 302,000
500,000 Slovak Wireless Co., 144A
(EUR) 11.250%, 03/30/07....................... 488,886
350,000 Sun International Hotels Ltd.,
Yankee-Dollar
9.000%, 03/15/07........................ 327,687
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 250,000 TeleWest Communications Plc,
Yankee-Dollar
9.625%, 10/01/06........................ $ 235,000
400,000 TeleWest Communications Plc,
Yankee-Dollar, Step Up
11.750%, 10/01/07....................... 381,000
390,000 Transportacion Ferroviaria Mexicana SA,
Yankee-Dollar, Step Up
0.000%, 06/15/09 (b).................... 268,124
250,000 United Pan-Europe Communications NV
0.000%, 08/01/09 (b).................... 126,875
9,232,000 Vnesheconombank, Variable Rate
0.000%, 12/15/15 (b).................... 2,828,316
300,000 Worldwide Fiber, Inc.
12.000%, 08/01/09....................... 285,000
------------
15,295,711
------------
Government Obligations -- 15.2%
690,000 Bulgaria Government Discount Note
Series A, Variable Rate
7.063%, 07/28/24........................ 545,962
1,360,000 Bulgaria-FLIRB Series A, Variable Rate
2.750%, 07/28/12........................ 997,900
786,386 Croatia Government National Series B
(Brady), Variable Rate
5.813%, 07/31/06........................ 745,911
575,000 Ministry of Finance Russia Global Bond
10.000%, 06/26/07....................... 440,875
100,000 Ministry of Finance Russia Global Bond
Series R
8.750%, 07/24/05........................ 77,625
</TABLE>
The accompanying notes are an integral part of the financial statements.
29
<PAGE> 30
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 630,000 Ministry of Finance Russia, 144A
11.000%, 07/24/18....................... $ 470,925
485,000 Ministry of Finance Russia, 144A
12.750%, 06/24/28....................... 419,525
520,000 Peru-FLIRB - Series US, Variable Rate
3.750%, 03/07/17........................ 313,300
385,000 Peru-PDI - Series US, Variable Rate
4.500%, 03/07/17........................ 231,963
705,000 Republic of Argentina
11.375%, 01/30/17....................... 630,975
800,000 Republic of Argentina Global Bond
11.750%, 04/07/09....................... 746,000
1,944,000 Republic of Argentina Series BB,
Variable Rate
7.375%, 03/31/05........................ 1,774,872
2,125,177 Republic of Argentina Series PRO1,
(ARS) Variable Rate
2.953%, 04/01/07........................ 1,370,242
750,000 Republic of Argentina Series WW
11.000%, 12/04/05....................... 710,250
870,000 Republic of Brazil
10.125%, 05/15/27....................... 682,950
775,788 Republic of Brazil - C Bond, Variable
Rate
8.000%, 04/15/14........................ 568,265
2,512,076 Republic of Brazil - C Bond, Variable
Rate (PIK)
5.000%, 04/15/14........................ 1,840,096
510,000 Republic of Brazil - NMB L (Brady),
Variable Rate
7.438%, 04/15/09........................ 427,763
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 790,500 Republic of Brazil Series EI-RG,
Variable Rate
6.125%, 04/15/06........................ $ 706,015
700,000 Republic of Brazil Series L
11.625%, 04/15/04....................... 705,250
135,000 Republic of Turkey Global Bond
11.875%, 11/05/04....................... 139,725
390,000 Republic of Venezuela
9.250%, 09/15/27........................ 252,720
320,000 United Mexican States Global Bond,
Series EMTN
9.750%, 04/06/05........................ 332,800
------------
15,131,909
------------
TOTAL FOREIGN OBLIGATIONS
(Cost $29,986,832)................................... 30,427,620
------------
U.S. CORPORATE OBLIGATIONS -- 56.0%
250,000 Aavid Thermal Technologies, Inc
12.750%, 02/01/07....................... 236,250
300,000 Ackerley Group, Inc. Series B
9.000%, 01/15/09........................ 276,750
500,000 Adelphia Communications Corp. Series B
8.375%, 02/01/08........................ 440,000
250,000 Advance Stores Co., Inc. Series B
10.250%, 04/15/08....................... 207,500
250,000 Advanced Glassfiber Yarns
9.875%, 01/15/09........................ 230,000
300,000 Aetna Industries, Inc.
11.875%, 10/01/06....................... 285,750
300,000 Agrilink Foods, Inc.
11.875%, 11/01/08....................... 235,500
400,000 AirGate PCS, Inc., Step Up
13.500%, 10/01/09....................... 231,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE> 31
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 246,925 Airplane Pass Through Trust
10.875%, 03/15/19....................... $ 200,754
350,000 Alliance Atlantis Communications, Inc.
13.000%, 12/15/09....................... 358,750
400,000 Allied Holdings, Inc. Series B
8.625%, 10/01/07........................ 356,500
350,000 Allied Waste North America Series B
7.875%, 01/01/09........................ 300,125
150,000 American Axle & Manufacturing Holdings,
Inc.
9.750%, 03/01/09........................ 140,625
400,000 American Eco Corp. Series B
9.625%, 05/15/08........................ 14,000
400,000 American Lawyer Media, Inc. Series B
9.750%, 12/15/07........................ 367,000
250,000 American Media Operations, Inc., 144A
10.250%, 05/01/09....................... 246,250
400,000 Ameristar Casinos, Inc. Series B
10.500%, 08/01/04....................... 402,000
200,000 Ampex Corp. Series B
12.000%, 03/15/03....................... 154,500
300,000 Anthony Crane Rentals Series B
10.375%, 08/01/08....................... 194,250
300,000 Applied Extrusion Technologies, Inc.
Series B
11.500%, 04/01/02....................... 302,250
400,000 Archibald Candy Corp.
10.250%, 07/01/04....................... 292,000
400,000 Aurora Foods, Inc. Series B
8.750%, 07/01/08........................ 226,000
700,000 Autotote Corp.
10.875%, 08/01/04....................... 731,500
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 400,000 Axia, Inc.
10.750%, 07/15/08....................... $ 314,000
250,000 Aztar Corp.
8.875%, 05/15/07........................ 236,875
200,000 B&G Foods, Inc., 144A
9.625%, 08/01/07........................ 141,000
250,000 Ball Corp.
8.250%, 08/01/08........................ 233,750
350,000 Bayou Steel Corp.
9.500%, 05/15/08........................ 288,750
550,000 Belko Oil & Gas
8.875%, 09/15/07........................ 508,750
200,000 Bellwether Exploration Co.
10.875%, 04/01/07....................... 179,250
250,000 Big City Radio, Inc., Step Up
11.250%, 03/15/05 (b)................... 137,500
150,000 Bluegreen Corp.
10.500%, 04/01/08....................... 93,750
300,000 Booth Creek Ski Holdings
12.500%, 03/15/07....................... 217,500
375,000 Boyd Gaming Corp.
9.500%, 07/15/07........................ 360,000
250,000 Brand Scaffold Services, Inc.
10.250%, 02/15/08....................... 220,625
400,000 Building Materials Corp. Series B
7.750%, 07/15/05........................ 331,000
200,000 Caprock Communications Corp.
11.500%, 05/01/09....................... 181,000
400,000 CapStar Broadcasting, Step Up
12.750%, 02/01/09....................... 367,000
250,000 Carrols Corp.
9.500%, 12/01/08........................ 210,000
400,000 Casino Magic Corp. (Louisiana) Series B
13.000%, 08/15/03....................... 429,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE> 32
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 500,000 Century Communications Corp. Series B
0.000%, 01/15/08 (b).................... $ 202,500
150,000 Charter Communications Holdings
10.250%, 01/15/10....................... 145,875
250,000 Charter Communications Holdings LLC
Series B
9.920%, 04/01/11........................ 142,500
300,000 Circus Circus
9.250%, 12/01/05........................ 290,250
250,000 Citadel Broadcasting Co.
9.250%, 11/15/08........................ 243,750
250,000 Classic Cable, Inc. Series B
9.375%, 08/01/09........................ 219,375
400,000 Coaxial Communications, Inc.
10.000%, 08/15/06....................... 381,000
250,000 Coinstar, Inc., Step Up
13.000%, 10/01/06....................... 254,062
400,000 Collins & Aikman Corp. Series B
10.000%, 01/15/07....................... 391,000
150,000 Colo.com, 144A
13.875%, 03/15/10....................... 162,000
200,000 Condor Systems, Inc., 144A
11.875%, 05/01/09....................... 97,500
300,000 Continental Resources, Inc.
10.250%, 08/01/08....................... 269,250
221,000 Contour Energy Co.
14.000%, 04/15/03....................... 227,630
250,000 Crown Paper Co.
11.000%, 09/01/05....................... 72,187
250,000 CSC Holdings, Inc.
7.875%, 12/15/07........................ 242,471
400,000 Cumulus Media, Inc.
10.375%, 07/01/08....................... 340,000
400,000 Diamond Brands, Inc.
10.125%, 04/15/08....................... 222,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 300,000 Diamond Triumph Autoglass
9.250%, 04/01/08........................ $ 235,500
600,000 DIVA Systems Corp. Series B, Step Up
12.625%, 03/01/08....................... 318,000
250,000 Dobson/Sygnet Communications Corp.
12.250%, 12/15/08....................... 267,500
250,000 Dura Operating Corp. Series B
9.000%, 05/01/09........................ 218,750
400,000 e. spire Communications, Inc., Step Up
10.625%, 07/01/08....................... 128,000
500,000 e. spire Communications, Inc., Step Up
13.000%, 11/01/05....................... 232,500
400,000 Eagle Family Foods Series B
8.750%, 01/15/08........................ 240,000
400,000 Eagle Geophysical, Inc. Series B
10.750%, 07/15/08....................... 38,000
300,000 Earthwatch, Inc., 144A, Step Up
13.000%, 07/15/07....................... 175,125
400,000 Echostar DBS Corp.
9.375%, 02/01/09........................ 386,000
250,000 Eldorado Resorts LLC, 144A
10.500%, 08/15/06....................... 248,750
400,000 Exodus Communications, Inc.
11.250%, 07/01/08....................... 398,000
300,000 Fisher Scientific International, Inc.
9.000%, 02/01/08........................ 276,000
300,000 Fitzgerald Gaming Corp. Series B
12.250%, 12/15/04....................... 168,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
32
<PAGE> 33
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 400,000 Fleming Companies, Inc. Series B
10.500%, 12/01/04....................... $ 361,000
296,000 Flooring America, Inc.
9.250%, 10/15/07........................ 180,560
500,000 Focal Communications Corp. Series B,
Step Up
12.125%, 02/15/08....................... 337,500
300,000 Fountain View, Inc. Series B
11.250%, 04/15/08....................... 76,500
300,000 Four M Corp. Series B
12.000%, 06/01/06....................... 281,250
250,000 Friendly Ice Cream Corp.
10.500%, 12/01/07....................... 201,875
300,000 Frontier Oil Corp.
11.750%, 11/15/09....................... 301,500
250,000 FrontierVision Operating Partners LP
Series B, Step Up
11.875%, 09/15/07....................... 217,500
400,000 Galey & Lord, Inc., 144A
9.125%, 03/01/08........................ 181,000
350,000 Gaylord Container Corp. Series B
9.750%, 06/15/07........................ 273,000
400,000 General Binding Corp.
9.375%, 06/01/08........................ 262,000
300,000 Geo Specialty Chemicals
10.125%, 08/01/08....................... 259,500
250,000 Global Crossing Holdings Ltd.
9.625%, 05/15/08........................ 243,750
250,000 Global Crossing Holdings Ltd., 144A
9.125%, 11/15/06........................ 245,937
400,000 Globalstar L.P.
11.500%, 06/01/05....................... 120,000
300,000 Globe Manufacturing Corp. Series B
10.000%, 08/01/08....................... 34,500
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 300,000 Golden Sky DBS, Inc. Series B, Step Up
13.500%, 03/01/07....................... $ 204,000
250,000 Gothic Production Corp. Series B
11.125%, 05/01/05....................... 206,250
400,000 Granite Broadcasting Corp.
8.875%, 05/15/08........................ 348,000
400,000 Great Lakes Carbon Corp. Series B (PIK)
10.250%, 05/15/08....................... 350,000
400,000 GST USA, Inc., Step Up
11.875%, 12/15/05....................... 138,000
200,000 Gulf States Steel-Alabama
13.500%, 04/15/03....................... 17,000
500,000 Hard Rock Hotel, Inc. Series B
9.250%, 04/01/05........................ 458,750
350,000 Hayes Lemerez International, Inc.
Series B
8.250%, 12/15/08........................ 297,500
400,000 HMH Properties Series B
7.875%, 08/01/08........................ 361,000
250,000 Holley Performance Products
12.250%, 09/15/07....................... 181,250
450,000 Hollinger International Publishing, Inc.
9.250%, 02/01/06........................ 443,250
250,000 Hollywood Casino Corp.
11.250%, 05/01/07....................... 256,875
400,000 Hollywood Park, Inc. Series B
9.500%, 08/01/07........................ 398,000
400,000 Home Products International, Inc.
9.625%, 05/15/08........................ 330,000
350,000 Horseshoe Gaming LLC Series B
9.375%, 06/15/07........................ 343,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
33
<PAGE> 34
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 250,000 HS Resources
9.250%, 11/15/06........................ $ 244,375
350,000 Huntsman Corp., 144A
9.500%, 07/01/07........................ 320,250
400,000 Hyperion Telecommunications, Inc.
Series B, Step Up
13.000%, 04/15/03....................... 368,000
400,000 ICN Pharmaceuticals, Inc. Series B
9.250%, 08/15/05........................ 394,000
400,000 IMPAC Group, Inc. Series B
10.125%, 03/15/08....................... 436,000
250,000 IMPSAT Fiber Networks, 144A
13.750%, 02/15/05....................... 223,750
400,000 InSight Health Services Corp.
9.625%, 06/15/08........................ 362,000
400,000 Insight Midwest/Insight Capital
9.750%, 10/01/09........................ 394,000
300,000 Interep National Radio Sales, Inc.
Series B
10.000%, 07/01/08....................... 267,000
250,000 Intermedia Communication, Inc. Series B
8.600%, 06/01/08........................ 232,500
400,000 International Home Foods, Inc.
10.375%, 11/01/06....................... 424,000
350,000 Isle of Capri Casinos, Inc.
8.750%, 04/15/09........................ 325,500
400,000 ITC DeltaCom, Inc.
8.875%, 03/01/08........................ 368,000
335,000 Jackson Products, Inc.
9.500%, 04/15/05........................ 303,175
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 400,000 James Cable Partners LP Series B
10.750%, 08/15/04....................... $ 386,000
257,483 Jazz Casino Co.
5.927%, 11/15/09........................ 45,060
250,000 JL French Auto Casting
11.500%, 06/01/09....................... 228,750
400,000 Jones Intercable, Inc.
8.875%, 04/01/07........................ 406,972
250,000 Key Energy Services, Inc.
14.000%, 01/15/09....................... 282,500
400,000 Keystone Consolidated Industries, Inc.
9.625%, 08/01/07........................ 322,000
300,000 Knology Holdings, Inc., Step Up
11.875%, 10/15/07....................... 159,000
400,000 L-3 Communications Corp.
8.500%, 05/15/08........................ 370,000
400,000 Laroche Industries, Inc. Series B
9.500%, 09/15/07........................ 80,000
400,000 Level 3 Communications, Inc.
9.125%, 05/01/08........................ 359,000
400,000 Lodestar Holdings, Inc.
11.500%, 05/15/05....................... 82,000
300,000 Lyondell Chemical Co.
9.875%, 05/01/07........................ 297,000
300,000 Madison River Capital LLC/ Finance, 144A
13.250%, 03/01/10....................... 271,500
200,000 Magellan Health Services, Inc.
9.000%, 02/15/08........................ 102,000
250,000 Majestic Star Casino LLC Series B
10.875%, 07/01/06....................... 205,000
500,000 McLeodUSA, Inc., Step Up
10.500%, 03/01/07....................... 412,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE> 35
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 350,000 Mediacom LLC
7.875%, 02/15/11........................ $ 308,000
250,000 MGM Grand, Inc.
9.750%, 06/01/07........................ 255,625
300,000 Mohegan Tribal Gaming Authority
8.750%, 01/01/09........................ 286,500
300,000 Motors and Gears, Inc. Series D
10.750%, 11/15/06....................... 290,250
200,000 Mrs. Fields Holding Co. - Unit, Step Up
14.000%, 12/01/05....................... 87,000
400,000 Mrs. Fields Original Cookies Series D
10.125%, 12/01/04....................... 334,000
400,000 NE Restaurant Co., Inc.
10.750%, 07/15/08....................... 314,000
250,000 Nebraska Book Co., Inc.
8.750%, 02/15/08........................ 193,750
500,000 Nextel Communications, Inc., Step Up
9.950%, 02/15/08........................ 368,750
325,000 Nextel Partner, Inc., Step Up
0.000%, 02/01/09........................ 225,875
300,000 NEXTLINK Communications, Inc.
9.625%, 10/01/07........................ 282,000
400,000 Northland Cable Television
10.250%, 11/15/07....................... 334,000
250,000 NorthPoint Communications Group, Inc.
12.875%, 02/15/10....................... 181,250
500,000 NTL Communications Corp. Series B,
Step Up
12.375%, 10/01/08....................... 320,000
250,000 NTL, Inc., Step Up
9.750%, 04/01/08........................ 156,250
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 300,000 Nuevo Energy
9.500%, 06/01/08........................ $ 292,500
300,000 Olympus Communications LP - Series B
10.625%, 11/15/06....................... 298,500
250,000 Orion Network, Inc.
11.250%, 01/15/07....................... 152,500
400,000 Outboard Marine Corp. Series B
10.750%, 06/01/08....................... 202,000
350,000 Oxford Automotive, Inc. Series D
10.125%, 06/15/07....................... 306,250
400,000 Oxford Health Plans, Inc.
11.000%, 05/15/05....................... 416,000
150,000 P & L Coal Holdings Corp. Series B
9.625%, 05/15/08........................ 139,875
300,000 Packaged Ice, Inc. Series B
9.750%, 02/01/05........................ 250,500
300,000 Park Place Entertainment
9.375%, 02/15/07........................ 301,500
400,000 Pathmark Stores, Inc.
9.625%, 05/01/03........................ 284,000
400,000 Philipp Brothers Chemicals, Inc.
9.875%, 06/01/08........................ 286,000
300,000 Pioneer Americas Acquisition Corp.
Series B
9.250%, 06/15/07........................ 199,500
200,000 Players International, Inc.
10.875%, 04/15/05....................... 208,000
150,000 Pogo Producing Co. Series B
8.750%, 05/15/07........................ 142,500
50,000 Port Royal Holdings, Inc.
10.250%, 10/01/07....................... 44,500
300,000 Premier Graphics, Inc.
11.500%, 12/01/05....................... 75,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE> 36
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 400,000 Premier International Foods Plc., 144A
12.000%, 09/01/09....................... $ 360,000
400,000 Price Communication Wireless, Inc.
Series B
9.125%, 12/15/06........................ 406,000
400,000 Primus Telecommunications Group, Inc.
Series B
9.875%, 05/15/08........................ 302,000
200,000 Protection One, Inc., 144A
8.125%, 01/15/09........................ 120,000
250,000 PSINet, Inc.
11.500%, 11/01/08....................... 236,250
500,000 Qwest Communications International,
Inc., Step Up
9.470%, 10/15/07........................ 411,290
250,000 R & B Falcon Corp. Series B
6.950%, 04/15/08........................ 208,750
400,000 Regal Cinemas, Inc.
9.500%, 06/01/08........................ 98,000
300,000 Republic Technology International LLC,
144A
13.750%, 07/15/09....................... 54,375
200,000 Rhythms NetConnections, Inc.
12.750%, 04/15/09....................... 142,000
200,000 Rural Cellular Corp. Series B
9.625%, 05/15/08........................ 195,000
300,000 Russell-Stanley Holdings, Inc.
10.875%, 02/15/09....................... 196,500
139,050 S.D. Warren Co.
14.000%, 12/15/06....................... 154,345
300,000 Salem Communications Corp. Series B
9.500%, 10/01/07........................ 282,000
600,000 Santa Fe Hotel, Inc.
11.000%, 12/15/00....................... 591,000
250,000 Sbarro, Inc., 144A
11.000%, 09/15/09....................... 256,875
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 250,000 Scotts Co., 144A
8.625%, 01/15/09........................ $ 241,250
250,000 Sequa Corp.
9.000%, 08/01/09........................ 241,250
300,000 Sinclair Broadcast Group, Inc.
10.000%, 09/30/05....................... 282,000
250,000 SITEL Corp.
9.250%, 03/15/06........................ 228,750
500,000 Sovereign Specialty Chemicals, Inc.
11.875%, 03/15/10....................... 516,875
400,000 Sprint Spectrum LP
11.000%, 08/15/06....................... 430,684
300,000 Stanadyne Automotive Corp. Series B
10.250%, 12/15/07....................... 249,000
400,000 Startec Global Communications Corp.
12.000%, 05/15/08....................... 322,000
300,000 Station Casinos, Inc.
9.750%, 04/15/07........................ 299,250
150,000 Sterling Chemicals, Inc.
11.750%, 08/15/06....................... 121,500
250,000 Teligent, Inc.
11.500%, 12/01/07....................... 197,500
200,000 Tenet Healthcare Corp.
9.250%, 09/01/10........................ 201,500
300,000 Tenet Healthcare Corp. Series B
8.125%, 12/01/08........................ 276,000
400,000 Thermadyne Holdings Corp.
9.875%, 06/01/08........................ 309,500
300,000 Time Warner Telecommunications LLC
9.750%, 07/15/08........................ 291,000
300,000 TNP Enterprises, Inc.
10.250%, 04/01/10....................... 309,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE> 37
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 400,000 Trans World Airlines, Inc.
11.375%, 03/01/06....................... $ 150,000
250,000 Transportation Manufacturing Operations
11.250%, 05/01/09....................... 214,063
400,000 Tri-state Outdoor Media
11.000%, 05/15/08....................... 370,000
400,000 Tropical Sportswear International Corp.
Series B, 144A
11.000%, 06/15/08....................... 386,000
300,000 Twin Laboratories, Inc.
10.250%, 05/15/06....................... 300,000
500,000 United International Holdings, Inc.
Series B, Step Up
10.750%, 02/15/08....................... 335,000
250,000 United Rentals (North America), Inc.
Series B
9.250%, 01/15/09........................ 226,875
300,000 US Unwired, Inc., Step Up
13.375%, 11/01/09....................... 164,250
400,000 Vectura Group, Inc. Series B
10.250%, 06/30/08....................... 330,000
500,000 Voicestream Wireless Corp.
10.375%, 11/15/09....................... 520,000
400,000 Waste Systems International, Inc.,
Convertible, 144A
7.000%, 05/13/05........................ 200,000
400,000 WCI Steel, Inc. Series B
10.000%, 12/01/04....................... 379,000
400,000 Weblink Wireless, Inc., Step Up
0.000%, 02/01/08 (b).................... 174,000
300,000 Williams Communications Group, Inc.
10.875%, 10/01/09....................... 294,000
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
--------------------------------------------------------------------------
<S> <C>
$ 300,000 Wiser Oil Co.
9.500%, 05/15/07........................ $ 237,000
250,000 Yankeenets LLC, 144A
12.750%, 03/01/07....................... 241,250
400,000 Young Broadcasting, Inc. Series B
8.750%, 06/15/07........................ 366,000
------------
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $66,482,579)................................... 55,650,565
------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 0.1%
U.S. Treasury Bonds -- 0.1%
30,000
8.000%, 11/15/21........................ 36,216
------------
U.S. Treasury Notes -- 0.0%
35,000
5.250%, 11/15/28........................ 30,991
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $66,164)....................................... 67,207
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------
<S> <C>
COMMON STOCKS -- 0.7%
3,520 Globix Corp.*........................... 103,180
27,137 Price Communications Corp.*............. 639,416
------------
TOTAL COMMON STOCKS
(Cost $343,540)...................................... 742,596
------------
PREFERRED STOCKS -- 0.3%
200 Benedek Communications (PIK),
11.5%................................... 110,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE> 38
Portfolio of Investments
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------------
<S> <C>
245 Rural Cellular Corp. Series B (PIK),
11.375%................................. $ 230,912
----------------
TOTAL PREFERRED STOCKS
(Cost $397,576)...................................... 341,412
----------------
WARRANTS -- 0.1%
250 Aavid Thermal Technologies, Inc......... 0
150 AirGate PCS, Inc........................ 16,936
1,200 Classic Communications, Inc............. 9,000
1,800 DIVA Systems............................ 46,800
250 Key Energy Services, Inc................ 20,000
200 Mrs. Fields Holding Co.................. 0
300 Republic Technology International....... 0
400 Startec Global Communications Corp...... 120
----------------
TOTAL WARRANTS
(Cost $15,284)....................................... 92,856
----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a)
----------
<S> <C>
SHORT-TERM INVESTMENTS -- 1.2%
Cash Equivalents -- 1.1%
$ 74,963 Credit Agricole Indosuez
6.719%, 07/05/00 (c).................... 74,963
161,979 Fleet National Bank
7.125%, 10/31/00 (c).................... 161,979
224,890 Janus Money Market (c).................. 224,890
377,815 Merrimac Cash Fund Premium Class (c).... 377,815
299,853 Royal Bank of Canada
6.813%, 07/03/00 (c).................... 299,853
----------------
1,139,500
----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount (a) Value
-------------------------------------------------------------------------
<S> <C>
U.S. Treasury Bills -- 0.1%
$ 60,000 U.S. Treasury Bill
5.720%, 09/14/00 (d).................... $ 59,285
----------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,198,785).................................... 1,198,785
----------------
TOTAL INVESTMENTS -- 89.0%
(Cost $98,490,760) 88,521,041
Other assets in excess of liabilities -- 11.0% 10,927,283
----------------
TOTAL NET ASSETS -- 100.0% $ 99,448,324
================
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
144A -- Securities restricted for resale to Qualified Institutional Buyers
ARS -- Argentinian Peso
EUR -- Euro
FLIRB -- Front Loaded Interest Reduction Bond
PDI -- Past Due Interest
PIK -- Payment in Kind
Step Up -- Security is a "step up" bond where the coupon increases or steps up
at a predetermined rate. Rates shown are current coupon and next coupon
rate when security steps up.
Variable Rate -- The rates shown on variable rate securities reflect the
currency interest rate at June 30, 2000, which are subject to change based
on the terms of the security, including varying reset dates.
Yankee-Dollar -- U.S. Dollar denominated bonds issued by non-U.S. companies in
the U.S.
(a) The Principal Amount shown is expressed in United States Dollars unless
stated otherwise.
(b) Security is a zero coupon bond.
(c) Represents investments of security lending collateral (Note 2). (d)
Security has been pledged to cover collateral requirements for open
futures.
(d) Security has been pledged to cover collateral requirements for open
futures.
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
38
<PAGE> 39
Investments by Country
American Odyssey Funds, Inc. / Global High-Yield Bond Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Percentage of
COUNTRY Net Assets
-------------------------------------------------------------------
<S> <C>
United States 57.6%
Argentina 6.1
Canada 5.7
Brazil 5.0
Russia 4.9
Great Britain 3.2
Bulgaria 1.6
Croatia 0.8
Mexico 0.8
Bermuda 0.5
Netherlands 0.5
Peru 0.5
Slovakia 0.5
South Korea 0.5
Bahama Islands 0.3
Venezuela 0.3
Luxembourg 0.1
Turkey 0.1
---------
Total 89.0%
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE> 40
Portfolio of Investments
American Odyssey Funds, Inc. / International Equity Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------------
<S> <C>
COMMON STOCKS -- 95.7%
AUTOMOTIVE -- 2.0%
145,639 Bayerische Motoren Werke AG............. $ 4,411,609
47,000 Honda Motor Co., Ltd.................... 1,603,664
44,345 Michelin - B............................ 1,428,716
----------------
7,443,989
----------------
BANKING -- 11.1%
187,996 ABN Amro Holdings....................... 4,624,213
18,200 Acom Co., Ltd........................... 1,534,420
388,282 Banco de Santander...................... 4,112,838
107,000 Bank of Tokyo-Mitsubishi, Ltd........... 1,295,513
237,790 Barclay's Plc........................... 5,914,646
60,880 Bayerische Hypo-Und Vereinsbank AG...... 3,974,240
222,264 DBS Group Holdings Ltd.................. 2,853,870
454,754 Lloyds TSB Group Plc.................... 4,295,925
190,150 National Australia Bank Ltd............. 3,185,108
145,050 Overseas-Chinese Banking Corp. Ltd...... 998,336
14,100 Takefuji Corp........................... 1,707,169
37,736 UBS AG - Registered..................... 5,546,460
222,490 Westpac Banking Corp.................... 1,609,737
----------------
41,652,475
----------------
BEVERAGES, FOOD & TOBACCO -- 4.6%
77,111 British American Tobacco Plc............ 514,816
408,060 Cadbury Schweppes Plc................... 2,681,077
448,970 Diageo Plc.............................. 4,030,583
30,000 Heineken NV............................. 1,833,303
4,140 Nestle SA............................... 8,312,767
----------------
17,372,546
----------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------------
<S> <C>
CHEMICALS -- 1.4%
93,000 Fuji Photo Film......................... $ 3,814,879
2,490 Lonza AG*............................... 1,301,608
----------------
5,116,487
----------------
COMMERCIAL SERVICES -- 3.1%
57,775 Brambles Industries Ltd................. 1,780,810
109,636 Vivendi................................. 9,716,118
----------------
11,496,928
----------------
COMMUNICATIONS -- 12.9%
98,425 Alcatel Alsthom......................... 6,481,788
395,650 Cable & Wireless Plc.................... 6,702,509
214,410 Ericsson LM - B......................... 4,265,837
312,200 Marconi Plc............................. 4,064,688
643,348 Telecom Italia SpA...................... 8,880,583
4,493,955 Vodafone Group Plc...................... 18,165,016
----------------
48,560,421
----------------
CONGLOMERATES -- 0.4%
2,490 Alusuisse Lonza Group*.................. 1,627,776
----------------
ELECTRIC UTILITIES -- 1.9%
59,175 EDP - Electricidade de Portugal SA...... 1,078,902
170,000 Hong Kong Electric Holdings Ltd......... 547,400
110,425 Veba AG................................. 5,440,815
----------------
7,067,117
----------------
ELECTRICAL EQUIPMENT -- 4.6%
503,000 Hitachi Ltd............................. 7,273,883
775,670 Invensys Plc............................ 2,912,253
80 Keyence Corp............................ 26,465
223,000 NEC Corp................................ 7,018,702
----------------
17,231,303
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE> 41
Portfolio of Investments
American Odyssey Funds, Inc. / International Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
ELECTRONICS -- 4.5%
93,825 Koninklijke (Royal) Philips Electronics
NV...................................... $ 4,443,017
35,000 Murata Manufacturing Co., Ltd........... 5,034,901
14,300 Rohm Co., Ltd........................... 4,189,921
34,000 Sony Corp............................... 3,181,428
--------------
16,849,267
--------------
ENTERTAINMENT & LEISURE -- 0.9%
175,367 EMI Group Plc........................... 1,592,929
470,100 Hilton Group Plc........................ 1,651,085
--------------
3,244,014
--------------
FINANCIAL SERVICES -- 0.8%
58,348 Fortis (NL) NV.......................... 1,705,360
61,150 3i Group Plc............................ 1,258,094
--------------
2,963,454
--------------
FOOD RETAILERS -- 1.3%
136,720 Koninklijke Ahold NV.................... 4,040,527
171,600 TI Group Plc............................ 935,220
--------------
4,975,747
--------------
HEAVY CONSTRUCTION -- 0.3%
45,000 Pohang Iron & Steel Co. Ltd. ADR........ 1,080,000
--------------
HOME CONSTRUCTION, FURNISHINGS & APPLIANCES -- 0.1%
24,350 RMC Group Plc........................... 317,025
--------------
INSURANCE -- 10.3%
297,555 Allied Zurich Plc....................... 3,520,403
57,080 Axa..................................... 9,028,184
194,375 ING Groep NV............................ 13,191,862
159,850 Old Mutual Plc.......................... 351,494
427,215 Prudential Corp......................... 6,260,665
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
3,193 Schweizerische Ruckversicherungs-
Gesellschaft............................ $ 6,529,090
--------------
38,881,698
--------------
MEDIA - BROADCASTING & PUBLISHING -- 5.5%
170,913 Elsevier NV............................. 2,079,071
525,532 Granada Group Plc....................... 5,250,958
375,791 News Corp., Ltd......................... 5,189,561
84,650 Pearson Plc............................. 2,691,184
179,350 Reuters Group Plc....................... 3,060,016
87,000 Singapore Press Holdings Ltd............ 1,358,609
23,700 VNU NV.................................. 1,229,075
--------------
20,858,474
--------------
MEDICAL SUPPLIES -- 2.6%
33,000 Hoya Corp............................... 2,963,096
104,000 Takeda Chemical Industries Ltd.......... 6,841,494
--------------
9,804,590
--------------
OFFICE EQUIPMENT -- 2.5%
187,000 Canon................................... 9,332,198
--------------
OIL & GAS -- 6.8%
448,189 ENI SpA................................. 2,599,272
11,240,000 PetroChina Co., Ltd.*................... 2,335,672
64,810 Royal Dutch Petroleum Co................ 4,044,416
983,530 Shell Transport & Trading............... 8,211,689
53,450 Total SA - B............................ 8,228,595
--------------
25,419,644
--------------
PHARMACEUTICALS -- 8.0%
93,875 AstraZeneca Group Plc................... 4,384,319
97,447 Aventis SA.............................. 7,141,316
565 Givaudan*............................... 172,516
</TABLE>
The accompanying notes are an integral part of the financial statements.
41
<PAGE> 42
Portfolio of Investments
American Odyssey Funds, Inc. / International Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
228,900 Glaxo Wellcome Plc...................... $ 6,677,677
3,872 Novartis AG............................. 6,153,042
565 Roche Holding AG........................ 5,517,737
------------
30,046,607
------------
REAL ESTATE -- 1.1%
226,000 Cheung Kong (Holdings) Ltd.............. 2,500,622
204,000 Sun Hung Kai Properties Ltd............. 1,465,556
------------
3,966,178
------------
RETAILERS -- 1.0%
78,000 KAO Corp................................ 2,388,625
96,000 Shiseido Co., Ltd....................... 1,488,067
------------
3,876,692
------------
TELEPHONE SYSTEMS -- 7.0%
347,000 China Mobile (HK)*...................... 3,060,436
25,625 Korea Telecom Corp. ADR................. 1,239,609
229 Nippon Telegraph & Telephone Corp....... 3,051,847
137 NTT DoCoMo.............................. 3,716,299
132,460 Royal KPN NV............................ 5,948,765
30,990 Tele Danmark A/S - B.................... 2,094,633
103,555 Telecom Corp. of New Zealand Ltd........ 363,178
216,332 Telefonica SA*.......................... 4,665,913
512,750 Telstra Corp., Ltd...................... 2,087,354
------------
26,228,034
------------
TRANSPORTATION -- 1.0%
106,500 Peninsular & Oriental Steam Navigation
Companies (The)......................... 912,567
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
55,910 Railtrack Group Plc..................... $ 868,853
77,900 TNT Post Group NV....................... 2,109,540
-------------
3,890,960
-------------
TOTAL COMMON STOCKS
(Cost $279,379,511)................................ 359,303,624
-------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
---------
<S> <C>
SHORT-TERM INVESTMENTS -- 7.0%
CASH EQUIVALENTS -- 7.0%
$ 1,722,476 Credit Agricole Indosuez
6.719%, 07/05/00 (a).................... 1,722,476
3,721,898 Fleet National Bank
7.125%, 10/31/00 (a).................... 3,721,898
5,167,428 Janus Money Market (a).................. 5,167,428
8,681,279 Merrimac Cash Fund Premium Class (a).... 8,681,279
6,889,904 Royal Bank of Canada
6.813%, 07/03/00 (a).................... 6,889,904
-------------
26,182,985
-------------
26,182,985
TOTAL SHORT-TERM INVESTMENTS
(Cost $26,182,985).................................
-------------
385,486,609
TOTAL INVESTMENTS -- 102.7%
(Cost $305,562,496)................................
(9,993,061)
Other assets in excess of liabilities -- (2.7)%......
-------------
$ 375,493,548
TOTAL NET ASSETS -- 100.0%...........................
=============
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
ADR -- American Depository Receipt
* Non-income producing security.
(a) Represents investments of security lending collateral (Note 2).
The accompanying notes are an integral part of the financial statements.
42
<PAGE> 43
Investments by Country
American Odyssey Funds, Inc. / International Equity Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Percentage of
COUNTRY Net Assets
-----------------------------------------------------------------
<S> <C>
Great Britain 25.9%
Japan 17.7
Netherlands 12.0
France 11.2
Switzerland 9.4
United States 7.0
Australia 3.7
Germany 3.7
Italy 3.1
Hong Kong 2.6
Spain 2.3
Singapore 1.4
Sweden 1.1
Denmark 0.6
South Korea 0.6
Portugal 0.3
New Zealand 0.1
----------
Total 102.7%
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE> 44
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
COMMON STOCKS -- 96.0%
ADVERTISING -- 0.8%
1,100 Ackerley Group, Inc..................... $ 12,925
200 Avenue A, Inc.*......................... 1,763
900 Catalina Marketing Corp.*............... 91,800
1,100 Digital Impact, Inc.*................... 15,538
2,200 Getty Images, Inc.*..................... 81,538
100 Grey Advertising, Inc................... 52,000
1,200 internet.com Corp.*..................... 23,625
3,400 Lamar Advertising Co.*.................. 147,263
1,300 MyPoints.com, Inc.*..................... 24,639
61,600 Penton Media, Inc....................... 2,156,000
3,400 Snyder Communications, Inc.*............ 80,750
1,200 24/7 Media, Inc.*....................... 18,750
2,300 True North Communications............... 101,200
3,300 Young & Rubicam, Inc.................... 188,719
-----------
2,996,510
-----------
AEROSPACE & DEFENSE -- 1.0%
1,300 AAR Corp................................ 15,600
5,200 B.F. Goodrich Co........................ 177,125
2,000 Gencorp, Inc............................ 16,000
200 Kaman Corp.............................. 2,138
50,200 Lockheed Martin Corp.................... 1,245,588
9,500 Moog, Inc. - Class A*................... 250,563
1,700 Onyx Software Corp.*.................... 50,469
1,800 Orbital Sciences Corp.*................. 21,938
54,800 Raytheon Co. - Class B.................. 1,054,900
75,300 Teledyne Technologies, Inc.*............ 1,261,275
1,900 Teleflex, Inc........................... 67,925
400 Triumph Group, Inc.*.................... 11,150
-----------
4,174,671
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
AIRLINES -- 0.2%
2,300 Airborne Freight Corp................... $ 43,556
3,100 Airtran Holdings, Inc.*................. 12,885
1,200 Alaska Airgroup, Inc.*.................. 32,550
1,700 America West Holdings Corp.*............ 29,113
900 Atlantic Coast Airlines Holdings,
Inc.*................................... 28,575
1,600 Atlas Air, Inc.*........................ 57,400
2,900 Continental Airlines, Inc. - Class B*... 136,300
1,000 Mesaba Holdings, Inc.*.................. 9,563
700 Midwest Express Holdings*............... 15,050
1,200 Skywest, Inc............................ 44,475
2,600 UAL Corp................................ 151,288
3,500 US Airways Group, Inc.*................. 136,500
-----------
697,255
-----------
APPAREL RETAILERS -- 0.6%
4,800 Abercrombie & Fitch Co.*................ 58,500
1,500 AnnTaylor Stores Corp.*................. 49,688
1,100 Bebe Stores, Inc.*...................... 9,213
2,800 Boyds Collection Ltd.*.................. 23,800
1,000 Buckle, Inc.*........................... 11,750
1,200 Cato Corp............................... 13,950
4,600 Charming Shoppes*....................... 23,431
800 Chico's FAS, Inc.*...................... 16,000
1,200 Childrens Place, Inc. (The)*............ 24,600
74,900 Claire's Stores, Inc.................... 1,441,825
900 David's Bridal, Inc.*................... 10,406
900 Dress Barn, Inc.*....................... 19,913
16,400 Intimate Brands, Inc.................... 323,900
1,500 Pacific Sunwear of California, Inc.*.... 28,125
1,100 Payless Shoesource, Inc.*............... 56,375
4,100 Ross Stores, Inc........................ 69,956
2,100 Stein Mart, Inc.*....................... 21,525
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE> 45
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,000 Sunglass Hut, Inc.*..................... $ 16,438
1,300 Talbots, Inc............................ 71,419
1,400 Too, Inc.*.............................. 35,613
800 Wilsons The Leather Experts*............ 11,750
------------
2,338,177
------------
AUTOMOTIVE -- 0.3%
1,000 Aftermarket Technology Corp.*........... 8,500
1,700 American Axle & Manufacturing
Holdings, Inc.*......................... 24,119
1,200 Arvin Industries, Inc................... 20,850
16,900 AutoNation, Inc.*....................... 119,356
1,000 Bandag, Inc............................. 24,250
1,300 Borg-Warner Automotive, Inc............. 45,663
2,500 Copart, Inc.*........................... 40,000
2,200 Federal Signal Corp..................... 36,300
3,500 Federal-Mogul Corp...................... 33,469
7,300 Goodyear Tire & Rubber Co. (The)........ 146,000
1,000 Group 1 Automotive, Inc.*............... 12,000
1,400 Hayes Lemmerz International, Inc.*...... 16,888
400 IMPCO Technologies, Inc.*............... 16,950
4,100 ITT Industries, Inc..................... 124,538
2,100 JLG Industries, Inc..................... 24,938
3,200 Lear Corporation*....................... 64,000
3,000 Meritor Automotive, Inc................. 33,000
900 Monaco Coach Corp.*..................... 12,263
900 Myers Industries, Inc................... 9,675
3,300 Navistar International Corp.*........... 102,506
800 Oshkosh Truck Corp...................... 28,600
3,700 PACCAR, Inc............................. 146,844
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,500 Pep Boys (The) - Manny, Moe & Jack...... $ 15,000
1,100 Smith (A.O.) Corp....................... 23,031
1,500 Sonic Automotive, Inc.*................. 16,031
1,500 SPX Corp.*.............................. 181,406
1,200 Superior Industries International....... 30,900
1,600 Tenneco Automotive, Inc................. 8,400
600 Thor Industries, Inc.................... 12,600
1,100 Wabash National Corp.................... 13,131
------------
1,391,208
------------
BANKING -- 2.3%
25,600 Advanta Corp. - Class A................. 312,000
23,700 Alliance Bancorp, Inc................... 389,569
1,300 Amcore Financial, Inc................... 23,806
900 American Capital Strategies Ltd......... 21,488
500 American Financial Holdings, Inc........ 7,938
3,500 AmeriCredit Corp.*...................... 59,500
1,200 Anchor Bancorp Wisconsin, Inc........... 18,375
800 Area Bancshares Corp.................... 17,850
3,300 Associated Banc-Corp.................... 71,981
2,500 Astoria Financial Corp.................. 64,375
2,700 Bancorpsouth, Inc....................... 37,969
26,900 BancWest Corp........................... 442,169
500 Bank of Granite Corp.................... 11,438
1,500 Bank United Corp........................ 52,781
4,700 Banknorth Group, Inc.................... 71,969
900 Bay View Capital Corp................... 8,831
1,300 Brookline Bancorp, Inc.................. 14,869
800 BT Financial Corp....................... 13,800
400 Cathay Bancorp, Inc..................... 18,550
1,900 CCB Financial Corp...................... 70,300
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<PAGE> 46
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
600 Century South Banks, Inc................ $ 11,625
6,900 Charter One Financial, Inc.............. 158,700
1,100 Cheap Tickets, Inc.*.................... 13,200
700 Chemical Financial Corp................. 18,200
1,300 Chittenden Corp......................... 31,769
12,400 CIT Group, Inc.......................... 201,500
2,400 Citizens Banking Corp................... 38,963
2,200 City National Corp...................... 76,450
200 CityBank (Lynwood, WA).................. 5,225
5,200 Colonial Bancgroup, Inc................. 46,800
1,400 Commerce Bancorp, Inc................... 64,400
2,900 Commerce Bancshares, Inc................ 86,275
2,800 Commercial Federal Corp................. 43,575
5,300 Compass Bancshares, Inc................. 90,431
2,100 CompuCredit Corp.*...................... 63,000
700 Corus Bankshares, Inc................... 18,506
400 CPB, Inc................................ 10,000
2,600 Cullen/Frost Bankers, Inc............... 68,413
1,200 CVB Financial Corp...................... 18,975
5,200 Dime Bancorp, Inc....................... 81,900
100 Dime Community Bancshares............... 1,625
1,300 Downey Financial Corp................... 37,700
1,200 F & M National Corp..................... 25,200
1,000 F.N.B. Corp............................. 20,625
300 Farmers Capital Bank Corp............... 9,113
700 Financial Federal Corp.*................ 12,163
3,000 Finova Group, Inc....................... 39,000
1,300 First BanCorp. (Puerto Rico)............ 24,131
600 First Busey Corp. - Class A............. 9,863
1,500 First Charter Corp...................... 23,625
500 First Citizens Bancshares............... 29,750
2,700 First Commonwealth Financial Corp....... 24,469
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,200 First Financial Bancorp................. $ 43,313
500 First Financial Bankshares, Inc......... 13,750
100 First Financial Corp.................... 3,050
200 First Merchants Corporation............. 4,238
2,100 First Midwest Bancorp, Inc.............. 48,825
1,200 First Niagara Financial Group, Inc...... 11,250
2,000 First Sentinel Bancorp, Inc............. 16,438
6,100 First Tennessee National Corp........... 101,031
1,200 First United Bancshares................. 18,225
2,300 First Virginia Banks, Inc............... 80,069
800 Firstfed Financial Corp.*............... 11,300
4,200 FirstMerit Corporation.................. 89,775
800 Frontier Financial Corp................. 14,700
1,800 Gold Banc Corporation, Inc.............. 9,000
5,200 Golden State Bancorp, Inc.*............. 93,600
5,100 Greenpoint Financial Corp............... 95,625
1,300 Harbor Florida Bancshares, Inc.......... 13,569
400 Harleysville National Corp.............. 13,100
7,500 Hibernia Corp........................... 81,563
5,400 Hudson City Bancorp, Inc................ 92,138
2,400 Hudson United Bancorp................... 53,850
7,600 Huntington Bancshares, Inc.............. 120,175
2,100 Imperial Bancorp*....................... 32,681
3,200 Independence Community Bank............. 42,400
800 Integra Bank Corp....................... 13,600
1,000 International Bancshares Corp........... 32,625
700 Interwest Bancorp, Inc.................. 9,800
1,400 Investors Financial Services Corp....... 55,563
</TABLE>
The accompanying notes are an integral part of the financial statements.
46
<PAGE> 47
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
2,400 Keystone Financial, Inc................. $ 51,000
400 M&T Bank Corporation.................... 180,000
700 Medallion Financial Corp................ 10,806
3,200 Mercantile Bankshares Corp.............. 95,400
900 Merchants New York Bancorp.............. 15,469
2,700 Metris Companies, Inc................... 67,838
500 Mid-America Bancorp..................... 12,500
400 Mississippi Valley Bancshares........... 9,700
1,400 National Bancorp of Alaska, Inc......... 50,225
27,800 National Commerce Bancorp............... 446,538
800 National Penn Bancshares, Inc........... 16,500
48,900 Net.B@nk, Inc.*......................... 608,194
2,400 NextCard, Inc.*......................... 20,400
8,300 North Fork Bancorporation............... 125,538
14,130 Northrim Bank........................... 102,443
2,200 Northwest Bancorp, Inc.................. 15,125
2,800 Nvidia Corp.*........................... 177,975
200 Oceanfirst Financial Corp............... 3,688
3,200 Ocwen Financial Corp.*.................. 17,800
6,510 Old Kent Financial Corp................. 174,143
2,500 Old National Bancorp.................... 73,281
100 Omega Financial Corp.................... 2,525
1,600 One Valley Bancorp, Inc................. 50,000
3,800 Pacific Century Financial Corp.......... 55,575
500 Park National Corp...................... 45,375
3,000 Peoples Bank Bridgeport................. 55,125
200 PFF Bancorp, Inc........................ 3,650
6,400 Popular, Inc............................ 122,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
1,300 Provident Bankshares Corp............... $ 17,550
2,300 Provident Financial Group, Inc.......... 54,769
1,000 Queens County Bancorp, Inc.............. 18,438
1,400 Richmond County Financial Corp.......... 26,775
1,300 Riggs National Corp..................... 16,413
3,300 Roslyn Bancorp, Inc..................... 54,811
1,300 S & T Bancorp, Inc...................... 23,725
1,700 Santander Bancorp....................... 21,675
1,300 Seacoast Financial Services Corp........ 12,350
1,000 Silicon Valley Bancshares*.............. 42,625
3,600 Sky Financial Group, Inc................ 57,375
2,070 South Financial Group, Inc. (The)....... 30,015
5,500 SouthTrust Corp......................... 124,438
1,300 Southwest Bancorp Of Texas*............. 26,975
10,600 Sovereign Bancorp, Inc.................. 74,532
1,900 Staten Island Bancorp, Inc.............. 33,488
1,200 Sterling Bancshares, Inc................ 12,975
800 Student Loan Corp....................... 33,600
1,700 Susquehanna Bancshares, Inc............. 24,225
3,900 TCF Financial Corp...................... 100,181
700 Texas Regional Bancshares, Inc.......... 17,763
7,100 Total System Services, Inc.............. 112,713
900 Trust Company Of New Jersey............. 16,425
2,500 Trustco Bank Corp....................... 31,250
3,300 Trustmark Corp.......................... 57,544
400 UCBH Holdings, Inc...................... 10,675
1,000 UMB Financial Corp...................... 32,813
</TABLE>
The accompanying notes are an integral part of the financial statements.
47
<PAGE> 48
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
4,600 Union Planters Corp..................... $ 128,513
2,000 United Bankshares, Inc.................. 36,375
800 United National Bancorp NJ.............. 14,700
3,300 Unitrin, Inc............................ 96,938
2,900 Valley National Bancorp................. 70,506
2,000 W Holding Company, Inc.................. 16,500
2,500 Washington Federal, Inc................. 45,625
2,100 Webster Financial Corp.................. 46,594
900 Wesbanco, Inc........................... 21,825
1,900 Westamerica Bancorporation.............. 49,638
1,440 Westcorp................................ 17,190
1,100 Whitney Holding Corp.................... 37,606
1,500 Wilmington Trust Corporation............ 64,125
5,100 Zions Bancorporation.................... 234,042
----------
8,925,090
----------
BEVERAGES, FOOD & TOBACCO -- 1.2%
1,900 Adolph Coors Co......................... 114,950
500 Agribrands International, Inc.*......... 20,969
900 American Italian Pasta Company*......... 18,619
3,100 Aurora Foods, Inc.*..................... 12,400
300 Ben & Jerry's Homemade, Inc.*........... 13,050
800 Beringer Wine Estates Holdings, Inc.*... 28,250
1,800 Bob Evans Farms......................... 26,888
3,100 Brown-Forman Corp....................... 166,625
900 Bush Boake Allen, Inc.*................. 39,375
700 Cadiz, Inc.*............................ 5,600
800 Canandaigua Brands, Inc.*............... 40,350
800 Castle & Cooke, Inc.*................... 15,450
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
3,100 Chiquita Brands International........... $ 12,206
400 Coca-Cola Bottling Co. Consolidated..... 18,200
1,700 Corn Products International, Inc........ 45,050
1,800 Dean Foods Co........................... 57,038
2,400 Del Monte Foods Co.*.................... 16,350
1,300 Dreyers Grand Ice Cream, Inc............ 27,300
2,000 Earthgrains Company..................... 38,875
100 Farmer Brothers Co...................... 17,500
1,800 Fleming Companies, Inc.................. 23,513
58,250 Flowers Industries, Inc................. 1,161,359
1,800 Fresh Del Monte Produce, Inc.*.......... 12,375
1,606 Hain Celestial Group, Inc.*............. 58,920
5,500 Hercules, Inc........................... 77,344
6,200 Hormel Foods Corp....................... 104,238
5,000 IBP, Inc................................ 77,188
3,500 International Home Foods, Inc.*......... 73,281
900 International Multifoods Corp........... 15,581
3,200 Interstate Bakeries..................... 44,800
3,800 Keebler Foods Company................... 141,075
1,400 Lance, Inc.............................. 12,600
3,300 McCormick & Co.......................... 107,250
1,000 Michael Foods, Inc...................... 24,500
1,700 Nabisco Holdings Corp................... 89,250
7,000 Pepsi Bottling Group, Inc............... 204,313
1,000 PepsiAmericas, Inc.*.................... 3,000
700 Performance Food Group Co.*............. 22,400
1,400 Ralcorp Holdings, Inc.*................. 17,150
600 Rica Foods, Inc.*....................... 13,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
48
<PAGE> 49
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
700 Riviana Foods, Inc...................... $ 12,206
5,100 RJ Reynolds Tobacco Holdings, Inc....... 142,481
400 Robert Mondavi Corp. - Class A*......... 12,275
100 Seaboard Corp........................... 17,200
1,100 Seminis, Inc.*.......................... 2,888
1,400 Smart & Final, Inc.*.................... 10,763
2,600 Smithfield Foods, Inc.*................. 72,963
1,400 Smucker (J.M.) Co....................... 26,950
1,500 Suiza Foods Corp.*...................... 73,313
6,500 SUPERVALU, Inc.......................... 123,906
61,850 Tasty Baking............................ 792,453
1,500 Tootsie Roll Industries................. 52,500
2,200 Topps Company (The)*.................... 25,300
1,100 Triarc Companies*....................... 22,550
9,800 Tyson Food, Inc. - Class A.............. 85,750
900 United Natural Foods, Inc.*............. 12,375
2,300 Universal Foods Corp.................... 42,550
8,700 UST, Inc................................ 127,781
1,000 Vector Group Ltd........................ 14,750
6,600 Whitman Corp............................ 81,675
-----------
4,771,611
-----------
BUILDING MATERIALS -- 0.3%
1,300 Amcol International Corp................ 21,450
1,600 Caprock Communications Corp.*........... 31,200
700 Carbo Ceramics, Inc..................... 24,588
900 Centex Construction Products............ 20,419
1,800 Comfort Systems USA, Inc.*.............. 7,200
2,600 Dal-Tile International, Inc.*........... 21,450
900 Elcor Corp.............................. 20,700
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
3,300 Encompass Services Corporation*......... $ 18,975
1,900 Fisher Scientific International*........ 47,025
900 Florida Rock Industries................. 32,063
3,400 Ingram Micro, Inc.*..................... 59,288
2,800 Lafarge Corp............................ 58,800
900 Mattson Technology, Inc.*............... 29,250
3,300 MEMC Electronics Materials*............. 59,400
500 Molecular Devices Corp.*................ 34,594
4,500 Omnicare, Inc........................... 40,781
1,500 Owens & Minor, Inc...................... 25,781
2,600 Owens Corning........................... 24,050
600 Performance Technologies, Inc.*......... 5,100
1,700 Southdown, Inc.......................... 98,175
24,000 Sybron International Corp.*............. 475,500
700 U.S. Aggregates, Inc.................... 12,688
1,400 Universal Corp.......................... 29,575
2,300 USG Corp................................ 69,863
600 Vital Signs, Inc........................ 10,875
-----------
1,278,790
-----------
BUSINESS SERVICES -- 0.0%
700 Fair Issac & Co., Inc................... 30,800
-----------
CHEMICALS -- 2.2%
3,300 Airgas, Inc.*........................... 18,769
2,200 Albemarle Corp.......................... 43,450
1,100 Arch Chemicals, Inc..................... 24,063
600 Bio-Rad Laboratories*................... 15,000
3,100 Cabot Corp.............................. 84,475
530,300 Calgon Carbon Corp...................... 4,109,825
1,300 Cambrex Corp............................ 58,500
1,500 Carlisle Cos., Inc...................... 67,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
49
<PAGE> 50
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
900 Chemfirst, Inc.......................... $ 21,713
3,600 Cooper Tire & Rubber Co................. 40,050
5,600 Crompton Corporation.................... 68,600
2,000 Cytec Industries, Inc.*................. 49,375
1,100 Dexter Corp............................. 52,800
3,700 Eastman Chemical Co..................... 176,675
3,900 Ethyl Corp.............................. 9,750
1,700 Ferro Corp.............................. 35,700
700 Fuller (H. B.) Co....................... 31,894
900 GenTek, Inc............................. 10,069
1,100 Geon Company............................ 20,350
1,500 Georgia Gulf Corp....................... 31,219
2,700 Great Lakes Chemical Corp............... 85,050
2,300 Hanna (M.A.) Co......................... 20,700
38,400 IMC Global, Inc......................... 499,200
4,900 International Flavors & Fragrances,
Inc..................................... 147,919
3,200 International Specialty Products,
Inc.*................................... 18,200
2,700 Lubrizol Corp........................... 56,700
5,500 Lyondell Chemical Company............... 92,125
1,500 MacDermid, Inc.......................... 35,250
3,300 Millennium Chemicals, Inc............... 56,100
1,000 Minerals Technologies, Inc.............. 46,000
2,400 NL Industries........................... 36,600
39,700 Olin Corp............................... 655,050
1,100 OM Group, Inc........................... 48,400
2,000 Omnova Solutions, Inc................... 12,500
22,100 Potash Corp. of Saskatchewan, Inc....... 1,219,644
1,400 Schulman (A.), Inc...................... 16,888
1,300 Scotts Company (The)*................... 47,450
2,700 Sealed Air Corp.*....................... 141,413
500 Sequa Corp.*............................ 19,094
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
5,300 Solutia, Inc............................ $ 72,875
1,300 Spartech Corp........................... 35,100
1,300 Syntroleum Corporation*................. 22,263
2,700 Tupperware Corp......................... 59,400
1,200 Uniroyal Technology Corp.*.............. 13,275
4,200 USEC, Inc............................... 19,425
1,200 Vertex Pharmaceuticals, Inc.*........... 126,450
3,400 W.R. Grace & Co.*....................... 41,225
1,600 Wellman, Inc............................ 25,900
-----------
8,639,973
-----------
COAL -- 0.2%
68,800 Arch Coal, Inc.......................... 528,900
3,700 Consol Energy, Inc...................... 55,963
2,600 Pittston Brink's Group.................. 35,588
-----------
620,451
-----------
COMMERCIAL SERVICES -- 6.5%
1,100 ABM Industries, Inc..................... 25,300
2,800 ACNielsen Corporation*.................. 61,600
600 Administaff, Inc.*...................... 38,100
2,700 Advanced Tissue Sciences, Inc.*......... 21,685
1,600 Advantage Learning Systems, Inc.*....... 24,600
1,000 Advo, Inc.*............................. 42,000
1,300 Affymetrix, Inc.*....................... 214,663
9,200 Allied Waste Industries, Inc.*.......... 92,000
41,100 Allscripts, Inc.*....................... 945,300
1,100 Amerco, Inc.*........................... 22,000
1,700 Anixter International, Inc.*............ 45,050
2,300 APAC Customer Services, Inc.*........... 25,444
3,600 Apollo Group, Inc.*..................... 100,800
1,500 Avis Group Holdings, Inc.*.............. 28,125
</TABLE>
The accompanying notes are an integral part of the financial statements.
50
<PAGE> 51
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
1,700 Bowne & Co., Inc........................ $ 17,106
1,600 Breakaway Solutions, Inc.*.............. 43,200
200 Bright Horizons Family Solutions,
Inc.*................................... 4,275
900 Burns International Services Corp.*..... 11,250
500 Caci International, Inc.*............... 9,750
14,400 Career Education Corp.*................. 698,400
900 CDI Corp.*.............................. 18,338
3,000 Celgene Corp.*.......................... 176,625
1,600 Central Parking Corp.................... 37,900
4,500 Century Business Services, Inc.*........ 8,719
1,500 Cephalon, Inc.*......................... 89,813
600 Collateral Therapeutics, Inc.*.......... 15,216
1,200 COR Therapeutics, Inc.*................. 102,375
500 Corinthian Colleges, Inc.*.............. 11,719
46,900 Corporate Executive Board Co. (The)*.... 2,808,138
2,700 Critical Path, Inc.*.................... 157,444
1,600 CuraGen Corp.*.......................... 60,900
900 CV Therapeutics, Inc.*.................. 62,381
3,300 Cytogen Corp.*.......................... 33,413
1,700 Cytyc Corp.*............................ 90,738
3,300 Devry, Inc.*............................ 87,244
29,350 Diamond Technology Partners, Inc.*...... 2,582,800
2,200 Digital Courier Technologies, Inc.*..... 14,025
60,700 Digitas, Inc.*.......................... 990,169
1,100 Dollar Thrifty Automotive Group*........ 20,281
24,100 eBenX, Inc.*............................ 510,619
92,300 Edison Schools, Inc.*................... 2,140,206
1,300 Education Management, Inc.*............. 23,481
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,300 EGL, Inc.*.............................. $ 39,975
2,200 eGlobe, Inc.*........................... 6,600
1,200 Electro Rent Corp.*..................... 14,700
700 Entremed, Inc.*......................... 20,956
1,200 Enzo Biochem, Inc.*..................... 82,800
7,300 Equifax, Inc............................ 191,625
700 F.Y.I., Inc.*........................... 23,581
35,900 Firepond, Inc.*......................... 1,292,400
3,600 Fluor Corp.............................. 113,850
1,000 Forrester Research, Inc.*............... 72,813
1,300 Freemarkets, Inc.*...................... 61,669
800 Frontier Airlines, Inc.*................ 11,450
1,000 G&K Services, Inc....................... 25,063
1,200 Gene Logic, Inc.*....................... 42,825
1,000 Genome Therapeutics Corp.*.............. 30,438
5,100 H&R Block, Inc.......................... 165,113
600 Hall Kinion & Associates, Inc.*......... 19,988
9,900 Hanover Direct, Inc.*................... 15,469
1,400 Harland (John H.) Co.................... 20,913
72,200 Heidrick & Struggles International,
Inc.*................................... 4,557,625
1,700 Hertz Corp.............................. 47,706
700 Hotel Reservations Network, Inc.*....... 20,825
2,100 Icos Corporation*....................... 92,400
2,000 Idec Pharmaceuticals Corp.*............. 234,625
1,500 Immunogen, Inc.*........................ 18,094
1,300 Incyte Pharmaceuticals, Inc.*........... 106,844
3,000 Interim Services, Inc.*................. 53,250
1,300 Interpool, Inc.......................... 12,675
2,500 Iron Mountain, Inc.*.................... 85,000
1,700 Isis Pharmaceuticals, Inc.*............. 24,650
</TABLE>
The accompanying notes are an integral part of the financial statements.
51
<PAGE> 52
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,200 ITT Educational Services, Inc.*......... $ 21,075
1,200 Jacobs Engineering Group, Inc.*......... 39,225
700 Jupiter Communications, Inc.*........... 16,100
1,700 Kelly Services, Inc..................... 39,313
2,100 kforce.com, Inc.*....................... 14,569
1,900 Korn/Ferry International*............... 60,206
2,000 Labor Ready, Inc.*...................... 13,250
1,000 Learning Tree International*............ 61,250
2,000 Lightspan, Inc.*........................ 11,000
40,300 Lo-Jack Corp.*.......................... 279,581
800 Madison Gas & Electric Co............... 15,800
2,300 Mail-Well, Inc.*........................ 19,838
1,300 Management Network Group, Inc.*......... 45,500
3,600 Manpower, Inc........................... 115,200
8,800 MarchFirst, Inc.*....................... 160,600
1,000 Maximus, Inc.*.......................... 22,125
900 Media Metrix, Inc.*..................... 22,894
1,066 MedQuist, Inc.*......................... 36,244
700 Memberworks, Inc.*...................... 23,538
63,800 MessageMedia, Inc.*..................... 223,300
1,400 Metricom, Inc.*......................... 39,025
4,400 Metromedia International Group, Inc.*... 20,900
800 Midas, Inc.............................. 16,000
4,700 Modis Professional Services, Inc.*...... 35,838
94,100 Mutual Risk Management Ltd.............. 1,629,106
500 Myriad Genetics, Inc.*.................. 74,039
1,800 National Processing, Inc.*.............. 22,500
2,700 NationsRent, Inc.*...................... 10,294
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
100 NBC Internet, Inc.*..................... $ 1,250
1,200 NCO Group, Inc.*........................ 27,750
1,000 NeoRx Corporation*...................... 18,875
1,600 Netcentives, Inc*....................... 29,800
1,500 NetRatings, Inc.*....................... 38,438
1,000 Neurocrine Biosciences, Inc.*........... 35,563
700 Neurogen Corp.*......................... 20,213
3,500 Northwest Airlines Corp.*............... 106,531
2,300 Ogden Corp.*............................ 20,700
1,000 On Assignment, Inc.*.................... 30,500
2,900 PerkinElmer, Inc........................ 191,763
1,000 Pharmacopeia, Inc.*..................... 46,375
1,100 Predictive Systems, Inc.*............... 39,531
1,100 Prepaid Legal Services, Inc.*........... 32,863
2,300 Profit Recovery Group International*.... 38,238
900 ProsoftTraining.com*.................... 15,131
2,000 Quest Diagnostics, Inc.*................ 149,500
5,700 Quintiles Transnational Corp.*.......... 80,513
5,900 R.R. Donnelley & Sons Co................ 133,119
1,600 Regeneron Pharmaceutical*............... 47,700
1,900 Regis Corp.............................. 23,750
1,100 Rent-A-Center, Inc.*.................... 24,750
1,100 Rent-Way, Inc.*......................... 32,106
9,100 Republic Services, Inc.*................ 145,600
1,100 ResCare, Inc.*.......................... 5,913
2,700 Rollins Truck Leasing Corp.............. 18,731
1,400 Rollins, Inc............................ 20,825
100 Scientific Games Holdings Corp.*........ 2,456
1,100 Sequenom, Inc.*......................... 49,913
</TABLE>
The accompanying notes are an integral part of the financial statements.
52
<PAGE> 53
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
13,200 Service Corporation International....... $ 42,075
14,700 Servicemaster Company................... 167,213
3,300 Sitel Corp.*............................ 16,294
1,300 Softnet Systems*........................ 12,513
2,800 Sotheby's, Inc.......................... 49,000
1,300 Standard Register Co.................... 18,525
700 Startek, Inc.*.......................... 35,263
700 Stericycle, Inc.*....................... 16,800
5,000 Stewart Enterprises, Inc................ 17,657
2,000 Sylvan Learning Systems, Inc.*.......... 27,500
600 Tejon Ranch Co.......................... 13,538
2,600 Teletech Holdings, Inc.*................ 80,763
1,800 Tetra Tech, Inc.*....................... 41,175
1,800 Thermo Cardiosystems, Inc.*............. 18,000
1,000 Thermotrex Corp.*....................... 11,063
800 Trimeris, Inc.*......................... 55,950
4,000 U.S. Oncology, Inc.*.................... 20,000
2,800 United Global Com, Inc.*................ 130,900
3,400 United Rentals, Inc.*................... 58,225
2,600 Valassis Communications, Inc.*.......... 99,125
2,100 Ventro Corp.*........................... 39,638
4,500 Viad Corp............................... 122,625
700 Volt Information Sciences, Inc.*........ 23,056
2,000 Wallace Computer Services, Inc.......... 19,750
1,000 Waste Connections, Inc.*................ 19,750
3,500 Wind River Systems*..................... 132,563
600 Xtra Corp.*............................. 23,663
--------------
25,848,445
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
COMMUNICATIONS -- 3.8%
2,300 ACTV, Inc.*............................. $ 34,356
1,600 Adaptive Broadband Corp.*............... 58,800
1,462 ADC Telecommunications, Inc.*........... 122,625
31,800 Advanced Fibre Communication, Inc.*..... 1,440,938
1,400 Advanced Radio Telecom Corp.*........... 20,475
1,100 Airnet Communications Corp.*............ 28,738
1,300 Allen Telecom, Inc.*.................... 22,994
39,150 ANADIGICS, Inc.*........................ 1,333,547
1,400 Ancor Communications, Inc.*............. 50,072
3,800 Andrew Corp.*........................... 127,538
1,700 Antec Corp.*............................ 70,656
2,300 Aspect Communications Corp.*............ 90,419
600 Brooktrout, Inc.*....................... 13,088
1,500 C-COR.net Corporation*.................. 40,500
1,300 Cable Design Technologies Corp.*........ 43,550
1,100 Carrier Access Corp.*................... 58,163
400 Celeritek, Inc.*........................ 16,325
100 Centillium Communications, Inc.*........ 6,900
2,600 Comsat Corp............................. 61,100
700 Concord Communications, Inc.*........... 27,913
2,200 Copper Mountain Networks, Inc.*......... 193,875
37,800 Crown Castle International Corp.*....... 1,379,700
900 CT Communications, Inc.................. 25,594
1,100 CTC Communications Group, Inc.*......... 39,600
</TABLE>
The accompanying notes are an integral part of the financial statements.
53
<PAGE> 54
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
600 Davox Corp.*............................ $ 7,763
3,300 Digital Microwave Corp.*................ 125,813
2,300 Efficient Networks, Inc.*............... 169,194
1,000 Elantec Semiconductor, Inc.*............ 69,625
1,400 FirstCom Corp.*......................... 21,088
4,500 Fonix Corp.*............................ 5,063
3,000 Glenayre Technologies, Inc.*............ 31,688
1,400 Harmonic Lightwaves, Inc.*.............. 34,650
16,200 Harris Corp............................. 530,550
200 iBEAM Broadcasting Corp.*............... 3,600
44,495 Inet Technologies, Inc.*................ 2,413,854
4,000 Intelect Communications, Inc.*.......... 9,250
1,800 Intelidata Technologies Corp.*.......... 18,563
1,200 Inter-Tel, Inc.......................... 19,275
2,600 InterDigital Communications Corp.*...... 43,063
500 International FiberCom, Inc.*........... 12,750
1,500 InterVoice-Brite, Inc.*................. 9,844
1,200 Intraware, Inc.*........................ 19,275
1,500 L-3 Communications Holdings, Inc.*...... 85,594
1,200 Leap Wireless International, Inc.*...... 56,400
160 Liberty Livewire Corp.*................. 11,240
1,100 Lifeminders.com, Inc.*.................. 32,519
700 Marketwatch.com, Inc.*.................. 13,169
900 MCK Communications, Inc.*............... 20,813
24,300 Netro Corp.*............................ 1,394,213
300 Next Level Communication, Inc.*......... 25,725
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
700 Nextel Partners, Inc.*.................. $ 22,794
800 Northeast Optic Network, Inc.*.......... 49,300
6,000 NorthPoint Communications Group,
Inc.*................................... 67,125
500 Nucentrix Broadband Networks, Inc.*..... 12,750
500 Osicom Technologies, Inc.*.............. 42,313
3,500 P-COM, Inc.*............................ 19,906
2,500 Paxson Communications Corp.*............ 20,000
37,300 Pinnacle Holdings, Inc.*................ 2,014,200
800 Plantronics, Inc.*...................... 92,400
1,500 Polycom, Inc.*.......................... 141,141
1,500 Powertel, Inc.*......................... 106,406
2,600 Powerwave Technologies, Inc.*........... 114,400
600 Proxim, Inc.*........................... 59,381
600 Rainbow Technologies, Inc.*............. 29,175
12,000 Research in Motion Ltd.................. 543,000
4,400 SAVVIS Communications Corp.*............ 57,475
1,900 Sawtek, Inc.*........................... 109,369
1,500 SBA Communications Corp.*............... 77,906
1,800 Sirius Satellite Radio, Inc.*........... 79,763
100 SmartServ Online, Inc.*................. 7,056
600 Socket Communications, Inc.*............ 7,875
900 Spectralink Corp.*...................... 13,163
700 Symmetricom, Inc.*...................... 17,675
2,700 Tekelec*................................ 130,106
2,600 Terayon Corporation*.................... 167,009
3,500 Terremark Worldwide, Inc.*.............. 17,281
</TABLE>
The accompanying notes are an integral part of the financial statements.
54
<PAGE> 55
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,100 Time Warner Telecom, Inc. - Class A*.... $ 70,813
600 Tollgrade Communications, Inc.*......... 79,500
300 Turnstone Systems, Inc.*................ 49,702
800 Tut Systems, Inc.*...................... 45,900
700 U.S. Wireless Corp.*.................... 14,963
1,700 Ulticom, Inc.*.......................... 40,827
500 UTSarcom, Inc.*......................... 15,188
1,300 Vertel Corp.*........................... 22,750
500 Viasat, Inc.*........................... 27,125
1,100 Vixel Corp.*............................ 9,075
1,800 Westell Technologies, Inc.*............. 27,000
3,200 Williams Communications Group*.......... 106,200
1,500 XM Satellite Radio Holdings, Inc.*...... 56,156
700 Zixit Corporation*...................... 32,244
-----------
15,108,459
-----------
COMPUTER HARDWARE -- 1.6%
1,100 Computer Network Technology Corp.*...... 19,113
76,200 Diebold, Inc............................ 2,124,075
87,400 Iomega Corp.*........................... 349,600
94,200 Maxtor Corp.*........................... 994,988
1,500 MTI Technology Corp.*................... 12,000
4,500 NCR Corp.*.............................. 175,219
15,300 Paradyne Networks, Inc.*................ 498,206
27,400 Tektronix, Inc.......................... 2,027,600
-----------
6,200,801
-----------
COMPUTER SERVICES -- 4.9%
30,300 BISYS Group, Inc.*...................... 1,863,450
14,700 Cadence Design Systems, Inc.*........... 299,513
70,200 Ceridian Corp.*......................... 1,689,188
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,500 Clarent Corp.*.......................... $ 107,250
1,000 Com21, Inc.*............................ 25,000
1,400 Corillian Corp.*........................ 23,275
2,400 CSG Systems International, Inc.*........ 134,550
29,800 Documentum, Inc.*....................... 2,663,375
1,200 DSP Group, Inc.*........................ 67,200
54,550 Electronics for Imaging, Inc.*.......... 1,380,797
45,400 eSPEED, Inc. - Class A*................. 1,972,063
1,200 Exchange Applications, Inc.*............ 31,950
43,700 Extreme Networks, Inc.*................. 4,610,350
1,000 Gerber Scientific, Inc.................. 11,500
1,500 Globix Corp.*........................... 43,969
1,200 Insight Enterprises, Inc.*.............. 71,175
2,300 Intergraph Corp.*....................... 17,394
6,400 Internap Network Services Corp.*........ 265,700
36,200 iXL Enterprises, Inc.*.................. 524,900
1,900 Jack Henry & Associates, Inc............ 95,238
3,000 Mentor Graphics Corp.*.................. 59,625
400 Onvia.com, Inc.*........................ 3,450
4,400 Perot Systems Corp.*.................... 48,400
1,700 Policy Management System Corp.*......... 26,138
17,000 Purchasepro.com, Inc.*.................. 697,000
2,300 Rare Medium Group, Inc.*................ 36,369
18,500 Register.com, Inc.*..................... 565,406
38,100 S1 Corp.*............................... 888,206
3,700 S3, Inc.*............................... 54,575
1,200 Sciquest.Com, Inc.*..................... 13,725
2,200 SEI Investments Co...................... 87,588
30,400 Tanning Technology Corp.*............... 585,200
</TABLE>
The accompanying notes are an integral part of the financial statements.
55
<PAGE> 56
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
35,200 Ziff-Davis, Inc.*....................... $ 316,800
4,900 Ziff-Davis, Inc. - ZD*.................. 44,100
-----------
19,324,419
-----------
COMPUTER SOFTWARE -- 5.4%
4,100 Acxiom Corp.*........................... 111,725
34,100 Alteon Websystems, Inc.*................ 3,412,131
28,700 Artisoft, Inc.*......................... 347,988
1,300 AXENT Technologies, Inc.*............... 32,256
700 Barra, Inc.*............................ 34,694
2,400 BindView Development Corp.*............. 28,800
2,200 Broadbase Software, Inc.*............... 67,375
900 C-bridge Internet Solutions, Inc.*...... 15,638
55,500 Caminus Corp.*.......................... 1,359,750
1,800 Dendrite International, Inc.*........... 59,963
1,200 Digex, Inc.*............................ 81,525
2,700 Electronic Arts*........................ 196,931
6,100 Entrust Technologies, Inc.*............. 504,775
1,200 HNC Software, Inc.*..................... 74,100
134,000 Information Resources, Inc.*............ 527,625
12,600 Informix Corp.*......................... 93,713
4,200 Liberate Technologies, Inc.*............ 123,113
1,300 Manugistics Group, Inc.*................ 60,775
26,910 Mercury Interactive Corp.*.............. 2,603,543
1,300 MetaCreations Corp.*.................... 15,600
10,000 Micromuse, Inc.*........................ 1,654,844
18,800 MicroStrategy, Inc.*.................... 564,000
1,800 Midway Games, Inc.*..................... 14,513
2,500 National Information Consortium,
Inc.*................................... 28,438
1,200 Net Perceptions, Inc.*.................. 19,050
48,000 New Era of Networks, Inc.*.............. 2,040,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
16,100 Novell, Inc.*........................... $ 148,925
100 Numerical Technologies, Inc.*........... 4,863
1,700 Objective Systems Integrator, Inc.*..... 18,169
11,800 OTG Software, Inc.*..................... 337,038
2,300 Pinnacle Systems, Inc.*................. 51,714
40,133 PRI Automation, Inc.*................... 2,624,321
1,000 Project Software & Development, Inc.*... 18,000
2,400 Proxicom, Inc.*......................... 114,900
6,640 PSINet, Inc.*........................... 166,830
1,000 Ramp Networks, Inc.*.................... 11,875
6,974 Razorfish, Inc.*........................ 112,020
3,700 Rhythms NetConnections, Inc.*........... 46,481
1,700 Santa Cruz Operation, Inc. (The)*....... 10,838
70,450 SERENA Software, Inc.*.................. 3,198,873
6,000 Sungard Data Systems, Inc.*............. 186,000
2,000 Sykes Enterprises, Inc.*................ 25,750
1,600 TenFold Corp.*.......................... 26,300
1,500 Transaction Systems*.................... 25,688
11,100 USinternetworking, Inc.*................ 226,856
1,000 WatchGuard Technologies, Inc.*.......... 54,938
-------------
21,483,244
-------------
COMPUTER SOFTWARE & PROCESSING -- 4.0%
800 About.com, Inc.*........................ 25,200
700 Acacia Research Corp.*.................. 16,800
1,300 Accrue Software, Inc.*.................. 46,150
1,200 Active Software, Inc.*.................. 93,225
1,400 Actuate Corporation*{::}................ 74,725
100 Adept Technology, Inc.*................. 4,675
</TABLE>
The accompanying notes are an integral part of the financial statements.
56
<PAGE> 57
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
1,400 Advent Software, Inc.*.................. $ 90,300
2,300 Affiliated Computer Services, Inc.*..... 76,044
1,600 Agency.com, Inc.*....................... 28,500
2,200 Agile Software Corp.*................... 155,513
1,300 Allaire Corp.*.......................... 47,775
536 America Online, Inc.*................... 28,300
1,900 American Management Systems*............ 62,373
1,100 Analysts International Corp............. 10,244
2,000 AnswerThink Consulting Group, Inc.*..... 33,250
2,300 Applied Digital Solutions, Inc.*........ 7,763
1,100 Applied Theory Corp.*................... 16,500
1,700 AppNet, Inc.*........................... 61,200
3,200 Art Technology Group, Inc.*............. 323,000
1,600 Ask Jeeves*............................. 28,900
27,300 Aspen Technology, Inc.*................. 1,051,050
3,100 Autodesk, Inc........................... 107,531
1,800 Avant! Corporation*..................... 33,722
1,500 AVT Corp.*.............................. 11,063
1,000 Aware, Inc.*............................ 51,125
1,400 barnesandnoble.com, Inc.*............... 9,144
1,700 Be, Inc.*............................... 8,500
2,800 Be Free, Inc.*.......................... 25,200
1,000 Blaze Software, Inc.*................... 13,625
900 Bluestone Software, Inc.*............... 23,119
500 Bottomline Technologies, Inc.*.......... 17,094
1,100 Brady Corporation....................... 35,750
900 Braun Consulting*....................... 19,013
1,300 Brio Technology, Inc.*.................. 27,544
1,500 Bsquare Corp.*.......................... 33,656
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,700 Cacheflow, Inc.*........................ $ 104,656
1,100 CAIS Internet, Inc.*.................... 15,469
1,800 Caldera Systems, Inc.*.................. 23,513
2,800 Cambridge Technology Partners, Inc.*.... 24,413
3,500 CareInsite, Inc.*....................... 62,563
1,000 CCC Information Services Group*......... 10,625
1,600 Cerner Corp.*........................... 43,600
2,700 Checkfree Holdings Corp.*............... 139,219
2,505 Choicepoint, Inc.*...................... 111,473
1,600 Chordiant Software, Inc.*............... 26,600
2,800 Ciber, Inc.*............................ 37,100
3,100 Cirrus Logic, Inc.*..................... 49,600
700 Clarus Corporation*..................... 27,213
4,000 CNET Networks, Inc.*.................... 98,250
1,900 Cognex Corp.*........................... 98,325
300 Cognizant Technology Solutions Corp.*... 9,956
7,200 Comdisco, Inc........................... 160,650
2,700 Communication Intelligence Corp.*....... 12,108
1,800 Complete Business Solutions*............ 31,613
1,600 Computer Horizons Corp.*................ 21,500
17,400 Compuware Corp.*........................ 180,525
700 CoStar Group, Inc.*..................... 17,544
1,800 Cyber-Care, Inc.*....................... 17,916
1,200 Cybersource Corp.*...................... 16,575
1,400 Cylink Corp.*........................... 23,450
1,100 Cysive, Inc.*........................... 26,263
1,000 Daleen Technologies, Inc.*.............. 15,438
1,700 Data Return Corp.*...................... 49,300
1,000 Datastream Systems, Inc.*............... 12,500
1,500 Datatec Systems, Inc.*.................. 8,438
3,700 Deluxe Corp............................. 87,181
</TABLE>
The accompanying notes are an integral part of the financial statements.
57
<PAGE> 58
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
600 Digimarc Corp.*......................... $ 23,100
1,100 Digital Insight Corp.*.................. 37,400
1,400 Digital Lightwave, Inc.*................ 140,788
1,000 Digital River, Inc.*.................... 7,688
1,500 DigitalThink, Inc.*..................... 53,813
200 DSET Corp.*............................. 6,075
700 e.Medsoft.Com*.......................... 5,600
1,500 E.piphany, Inc*......................... 160,781
5,100 Earthlink, Inc.*........................ 78,731
1,500 Echelon Corp.*.......................... 86,906
1,300 Egain Communications Corp.*............. 15,763
2,100 eLoyalty Corp.*......................... 26,775
1,200 Embarcadero Technologies, Inc.*......... 35,250
1,500 eMerge Interactive, Inc. - Class A*..... 26,906
5,100 Engage, Inc.*........................... 65,981
1,100 ePresence, Inc.*........................ 7,975
700 Excalibur Technologies Corp.*........... 27,956
1,400 eXcelon Corp.*.......................... 11,113
900 Extensity, Inc.*........................ 30,825
1,000 F5 Networks, Inc.*...................... 54,563
1,500 Factset Research Systems, Inc........... 42,375
1,500 Filenet Corp.*.......................... 27,563
1,600 Frontline Capital Group*................ 34,100
700 FutureLink Corp*........................ 5,031
900 Gartner Group, Inc...................... 10,800
900 Geoworks Corporation (DE)*.............. 14,175
1,500 GetThere.com*........................... 15,844
800 GlobalNet Financial.com, Inc.*.......... 16,800
1,500 Go2net, Inc.*........................... 75,469
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
2,300 GoTo.Com*............................... $ 35,219
800 Great Plains Software, Inc.*............ 15,700
900 GRIC Communications, Inc.*.............. 16,144
1,700 Gtech Holdings Corp.*................... 38,569
2,500 High Speed Access Corp.*................ 16,406
3,600 Homestore.com, Inc.*.................... 105,075
1,500 HotJobs.com Ltd.*....................... 20,719
1,600 Hypercom Corp.*......................... 23,000
1,500 Hyperion Solutions Corp.*............... 48,656
1,595 i2 Technologies, Inc.*.................. 166,304
1,100 IDT Corp.*.............................. 37,331
1,300 IDX Systems Corp.*...................... 18,363
2,400 iGate Capital Corp.*.................... 33,000
1,800 IMRglobal Corporation*.................. 23,513
1,500 Industri-Matematik International
Corp.*.................................. 8,063
1,500 Infocure Corp.*......................... 8,438
960 Infogrames, Inc.*....................... 7,800
1,600 Informatica Corp.*...................... 131,100
1,300 Information Architects Corp.*........... 9,019
500 Inforte Corp.*.......................... 18,000
2,300 infoUSA, Inc.*.......................... 14,950
2,900 Inprise Corporation*.................... 17,763
200 Integrated Circuit System*.............. 3,425
800 Intelligroup, Inc.*..................... 9,600
900 Interact Commerce Corp.*................ 10,631
700 Interactive Intelligence, Inc.*......... 26,250
600 Intercept Group, Inc.*.................. 10,200
2,400 Interliant, Inc.*....................... 55,950
2,200 Internet Pictures Corp.*................ 33,275
3,800 Intertrust Technologies Corp.*.......... 78,138
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE> 59
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,300 InterWorld Corp.*....................... $ 26,650
1,100 Interwoven, Inc.*....................... 120,983
900 Intranet Solutions, Inc.*............... 34,538
1,900 ISS Group, Inc.*........................ 187,595
1,800 ITXC Corp.*............................. 63,731
1,400 iVillage, Inc.*......................... 11,813
5,100 J.D. Edwards & Co.*..................... 76,819
1,100 JDA Software Group, Inc.*............... 21,106
1,800 Juno Online Services, Inc.*............. 19,350
3,300 Kana Communications, Inc.*.............. 204,188
3,400 Keane, Inc.*............................ 73,525
1,200 Keynote Systems, Inc.*.................. 84,675
600 Kronos, Inc.*........................... 15,600
1,800 Lante Corp.*............................ 36,788
4,300 Legato Systems, Inc.*................... 65,038
600 Level 8 Systems, Inc.*.................. 12,638
2,400 LHS Group, Inc.*........................ 82,800
1,000 Liquid Audio*........................... 9,469
4,100 Looksmart*.............................. 75,850
1,600 Loudeye Technologies, Inc.*............. 27,900
3,000 Macromedia, Inc.*....................... 290,063
1,900 Mail.com, Inc.*......................... 10,806
1,100 Manhattan Associates, Inc.*............. 27,500
400 Mapinfo Corp.*.......................... 16,250
1,100 Marimba, Inc.*.......................... 15,331
1,500 Maxygen, Inc.*.......................... 85,148
1,500 Mediaplex, Inc.*........................ 28,969
1,500 MedicaLogic/Medscape, Inc.*............. 13,875
1,400 Mercator Software, Inc.*................ 96,250
1,600 Metasolv Software, Inc.*................ 70,400
700 MSI Holdings, Inc.*..................... 6,344
1,300 Multex.com, Inc.*....................... 32,744
1,500 National Data Corp...................... 34,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
2,200 National Instruments Corp.*............. $ 95,975
2,600 Navisite, Inc.*......................... 108,713
1,000 net.Genesis Corp.*...................... 18,063
700 NetCreations, Inc.*..................... 32,069
900 Netegrity, Inc.*........................ 67,781
600 netGuru, Inc.*.......................... 10,725
1,000 NETIQ Corp.*............................ 59,625
1,300 NetObjects, Inc.*....................... 11,863
800 Netopia, Inc.*.......................... 32,200
2,800 Netpliance, Inc.*....................... 25,550
1,200 Netscout Systems, Inc.*................. 15,450
300 NETsilicon, Inc.*....................... 9,825
700 Netsolve, Inc*.......................... 18,200
8,300 Network Associates, Inc.*............... 169,113
2,500 Network Commerce, Inc.*................. 13,750
200 Network Equipment Tech, Inc.*........... 2,013
700 Network Peripherals, Inc.*.............. 11,725
4,900 NetZero, Inc.*.......................... 25,572
400 Niku Corp.*............................. 13,500
3,500 NOVA Corp.*............................. 97,781
900 Novadigm, Inc.*......................... 17,775
1,300 Nuance Communications, Inc.*............ 108,306
1,100 ON2.COM, Inc.*.......................... 5,638
900 OnDisplay, Inc.*........................ 73,294
2,200 Open Market, Inc.*...................... 30,388
3,700 Organic, Inc.*.......................... 36,075
1,300 Packeteer, Inc.*........................ 37,863
12,900 Parametric Technology Corp.*............ 141,900
800 PC-Tel, Inc.*........................... 30,400
1,200 PEC Solutions, Inc.*.................... 9,750
1,400 Pegasystems, Inc.*...................... 7,000
12,600 PeopleSoft, Inc.*....................... 211,050
</TABLE>
The accompanying notes are an integral part of the financial statements.
59
<PAGE> 60
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
46,550 Peregrine Systems, Inc.*................ $ 1,614,703
900 Persistence Software*................... 16,313
1,200 Phoenix Technologies Ltd.*.............. 19,575
600 Pivotal Corp.*.......................... 14,100
1,800 Pixar, Inc.*............................ 63,450
1,000 PLX Technology, Inc.*................... 41,500
1,000 Primark Corp.*.......................... 37,250
800 Primus Knowledge Solutions, Inc.*....... 36,000
1,100 ProBusiness Services, Inc.*............. 29,219
3,000 Prodigy Communications Corp. - A*....... 31,500
1,600 Progress Software Corp.*................ 28,700
1,900 Puma Technology, Inc.*.................. 50,944
600 QRS Corp.*.............................. 14,738
4,000 Quest Software, Inc.*................... 221,500
1,600 Quintus Corporation*.................... 31,775
1,200 Radiant Systems, Inc.*.................. 28,800
800 Radisys Corp.*.......................... 45,400
3,700 Rambus, Inc.*........................... 381,100
7,100 Red Hat, Inc.*.......................... 192,144
1,400 Remedy Corp.*........................... 78,050
2,200 Retek, Inc.*............................ 70,400
1,800 RSA Security, Inc.*..................... 124,650
2,000 Saba Software, Inc.*.................... 42,000
1,300 SAGA SYSTEMS, Inc.*..................... 16,169
1,400 Sagent Technology, Inc.*................ 19,950
1,200 Sanchez Computer Associates*............ 28,500
3,300 Scient Corp.*........................... 145,613
1,000 Seachange International, Inc.*.......... 28,875
1,100 Secure Computing Corp.*................. 20,694
200 Selectica, Inc.*........................ 14,013
1,300 Shared Medical Systems Corp............. 94,819
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
900 Silver Stream Software, Inc*............ $ 51,975
2,100 Software.Com, Inc*...................... 272,738
800 Sonic Foundry, Inc.*.................... 16,800
1,200 SonicWall, Inc.*........................ 105,675
800 Source Information Management Co.*...... 12,200
1,200 SportsLine.com, Inc.*................... 20,475
500 SPSS, Inc.*............................. 14,563
800 Spyglass, Inc.*......................... 25,050
800 Starbase Corp.*......................... 8,500
3,000 StarMedia Network, Inc.*................ 56,625
1,700 Structural Dynamics Research*........... 25,606
1,500 SVI Holdings, Inc.*..................... 7,688
1,100 Switchboard, Inc.*...................... 11,000
3,800 Sybase, Inc.*........................... 87,400
3,300 Symantec Corp.*......................... 177,994
3,300 Synopsys, Inc.*......................... 114,056
1,400 Syntel, Inc.*........................... 14,000
1,100 Take-Two Interactive Software*.......... 13,338
2,100 Technology Solutions Co.*............... 12,994
1,700 3DO Company (The)*...................... 13,334
700 Travelocity.com, Inc.*.................. 11,463
700 Trex Company, Inc.*..................... 35,000
1,000 Trizetto Group*......................... 16,188
1,200 Tumbleweed Communications Corp.*........ 61,050
900 U.S. Interactive, Inc.*................. 11,644
900 Unify Corp.*............................ 7,706
1,300 Uproar Ltd.*............................ 9,669
1,500 Verity, Inc.*........................... 57,000
200 Versata, Inc.*.......................... 8,063
3,300 VerticalNet, Inc.*...................... 121,894
2,500 VIA NET.WORKS, Inc.*.................... 38,594
</TABLE>
The accompanying notes are an integral part of the financial statements.
60
<PAGE> 61
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
800 Viador, Inc.*........................... $ 12,700
900 viaLink Co. (The)*...................... 9,281
2,200 Viant Corp.*............................ 65,175
1,300 Vicinity Corp.*......................... 25,513
5,900 Vitria Technology, Inc.*................ 360,638
1,500 Voyager.net, Inc.*...................... 12,000
2,200 Wave Systems Corp.*..................... 34,788
1,400 webMethods, Inc.*....................... 220,063
900 Websense, Inc.*......................... 22,613
1,100 WebTrends Corp.*........................ 42,556
700 Witness Systems, Inc.*.................. 17,063
2,200 Women.com Networks, Inc.*............... 4,538
2,300 Xpedior, Inc.*.......................... 31,769
-------------
15,857,487
-------------
COMPUTERS & INFORMATION -- 0.8%
2,400 Advanced Digital Information Corp.*..... 38,250
600 Analogic Corp........................... 24,000
1,100 APEX, Inc.*............................. 48,125
1,100 Bell & Howell Company*.................. 26,675
3,395 Cisco Systems, Inc.*.................... 215,787
2,500 Concurrent Computer Corp.*.............. 32,813
1,200 Crossroads Systems, Inc.*............... 30,300
900 Cybex Computer Products Corp.*.......... 38,700
1,100 Dot Hill Systems Corp.*................. 12,100
1,200 Electro Scientific Industries, Inc.*.... 52,838
6,800 eMachines, Inc.*........................ 18,275
14,700 Emulex Corp.*........................... 965,606
400 Extended Systems, Inc.*................. 38,400
1,200 Gadzoox Networks, Inc.*................. 16,425
500 Go.Com*................................. 5,969
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
800 Immersion Corp.*........................ $ 24,000
1,100 In Focus Systems, Inc.*................. 35,406
500 Interlink Electronics, Inc.*............ 20,938
3,500 International Game Technology*.......... 92,750
900 Intrusion.Com, Inc.*.................... 10,181
600 MCSI, Inc.*............................. 15,525
4,300 Micron Electronics, Inc.*............... 53,750
800 MICROS Systems, Inc.*................... 14,850
1,500 National Computer Systems, Inc.......... 73,875
900 Natural Microsystems Corp.*............. 101,194
1,500 Netrix Corp.*........................... 18,469
1,100 NYFIX, Inc.*............................ 46,131
500 Procom Technology, Inc.*................ 25,844
7,500 Quantum Corp. - DLT & Storage*.......... 72,656
4,300 Quantum Corp. - Hard Disk Drive
Group*.................................. 47,569
3,600 Reynolds & Reynolds Company............. 65,700
3,100 Sandisk Corp.*.......................... 189,681
100 SBS Technologies, Inc.*................. 3,694
700 SCM Microsystems, Inc.*................. 42,394
8,900 Silicon Graphics, Inc.*................. 33,375
800 SmartDisk Corporation*.................. 22,000
4,800 Storage Technology Corp.*............... 52,500
1,500 Systems & Computer Technology
Corporation*............................ 30,000
800 Telxon Corp.*........................... 14,300
800 Three-Five Systems, Inc.*............... 47,200
1,000 Tricord Systems, Inc.*.................. 18,063
1,697 VA Linux, Inc*.......................... 72,971
1,200 Visual Networks, Inc.*.................. 34,200
6,400 Western Digital Corp.*.................. 32,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
61
<PAGE> 62
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,400 Xircom, Inc.*........................... $ 66,500
1,700 Xybernaut Corp.*........................ 19,019
1,500 Zebra Technologies Corp.*............... 66,469
------------
3,027,467
------------
CONTAINERS & PACKAGING -- 0.0%
2,600 American National Can Group, Inc........ 43,875
1,500 Ball Corp............................... 48,281
1,100 Clarcor, Inc............................ 21,863
6,100 Crown Cork & Seal Co., Inc.............. 91,500
600 US Can Corp.*........................... 10,425
------------
215,944
------------
COSMETICS & PERSONAL CARE -- 0.0%
2,600 Alberto-Culver Co....................... 79,463
500 Chemed Corp............................. 14,094
1,800 Church & Dwight, Inc.................... 32,400
4,900 Dial Corp............................... 50,838
------------
176,795
------------
EDUCATION -- 0.0%
700 Strayer Education, Inc.................. 16,800
------------
ELECTRIC UTILITIES -- 1.3%
5,200 Allegheny Energy, Inc................... 142,350
3,700 Alliant Energy Corp..................... 96,200
2,200 Avista Corp............................. 38,363
1,000 Black Hills Corp........................ 22,563
800 CH Energy Group, Inc.................... 27,150
5,200 Cinergy Corp............................ 132,275
15,800 Citizens Communications Co.*............ 272,550
1,100 Cleco Corporation....................... 36,850
1,500 CMP Group, Inc.......................... 43,969
5,800 CMS Energy Corp......................... 128,325
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
4,500 Conectiv, Inc........................... $ 70,031
7,900 DPL, Inc................................ 173,306
3,500 DQE, Inc................................ 138,250
2,700 El Paso Electric Co.*................... 30,206
800 Empire District Electric Co............. 17,650
7,700 Energy East Corp........................ 146,781
7,200 GPU, Inc................................ 194,850
1,800 Idacorp Inc............................. 58,050
4,000 Ipalco Enterprises, Inc................. 80,500
3,000 Kansas City Power & Light............... 67,500
4,400 KeySpan Corp............................ 135,300
6,100 LG&E Energy Corp........................ 145,638
3,500 Minnesota Power, Inc.................... 60,594
6,300 Montana Power Co. (The)................. 222,469
7,000 New Century Energies, Inc............... 210,000
8,300 Niagara Mohawk Holdings, Inc.*.......... 115,681
5,900 NiSource, Inc........................... 109,888
8,900 Northeast Utilities..................... 193,575
9,400 Northern States Power Co................ 189,763
1,100 Northwestern Corporation................ 25,438
500 NRG Energy, Inc.*....................... 9,125
2,800 NSTAR................................... 113,925
3,700 OGE Energy Corp......................... 68,450
1,100 Otter Tail Power Co..................... 23,100
4,000 Pinnacle West Capital Corp.............. 135,500
2,000 Plug Power, Inc.*....................... 125,000
5,600 Potomac Electric Power.................. 140,000
6,700 PPL Corp................................ 146,981
1,900 Public Service Co. of New Mexico........ 29,331
4,000 Puget Sound Energy, Inc................. 85,250
1,700 RGS Energy Group, Inc................... 37,825
4,900 Scana Corp.............................. 118,213
12,200 Sempra Energy........................... 207,400
</TABLE>
The accompanying notes are an integral part of the financial statements.
62
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Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
3,700 Sierra Pacific Resources................ $ 46,481
6,100 Teco Energy, Inc........................ 122,381
1,300 UGI Corp................................ 26,650
1,500 Unisource Energy Corp. Holding
Company................................. 22,500
700 United Illuminating Co.................. 30,625
4,400 Utilicorp United, Inc................... 87,450
3,300 Western Resources, Inc.................. 51,150
7,200 Wisconsin Energy Corp................... 142,650
1,300 WPS Resources Corp...................... 39,081
------------
5,135,133
------------
ELECTRICAL EQUIPMENT -- 0.8%
1,000 Advanced Lighting Technologies*......... 18,500
1,500 Ametek, Inc............................. 26,250
1,700 Artesyn Technologies, Inc.*............. 47,281
100 Asiainfo Holdings, Inc.*................ 4,469
1,700 Baldor Electric Company................. 31,663
1,500 C&D Technologies, Inc................... 84,750
1,400 Checkpoint Systems, Inc.*............... 10,500
500 EMCOR Group, Inc.*...................... 11,594
125,000 Evans & Sutherland Computer Co.*........ 796,875
300 Franklin Electric Co.................... 20,325
400 FuelCell Energy, Inc.*.................. 27,625
600 Genlyte Group, Inc.*.................... 12,638
400 HI/FN, Inc.*............................ 17,750
900 Littelfuse, Inc.*....................... 44,100
3,800 Micrel, Inc.*........................... 165,063
2,000 National Service Industries, Inc........ 39,000
2,400 Quanta Services, Inc.*.................. 132,000
1,300 Rayovac Corp.*.......................... 29,088
1,700 SLI, Inc................................ 20,613
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
700 Superconductor Technologies*............ $ 27,519
53,825 Therma-Wave, Inc.*...................... 1,200,970
1,700 Thermo Ecotek Corporation*.............. 15,938
3,000 Thomas & Betts Corp..................... 57,375
700 Thomas Industries, Inc.................. 12,381
4,100 U.S. Industries, Inc.................... 49,713
2,100 Ucar International, Inc.*............... 27,431
1,600 Valence Technology, Inc.*............... 29,500
1,100 Valmont Industries...................... 21,863
1,900 Vicor Corp.*............................ 66,144
200 Woodhead Industries, Inc................ 3,650
600 Zygo Corp.*............................. 54,488
------------
3,107,056
------------
ELECTRONICS -- 7.6%
800 ACT Manufacturing, Inc.*................ 37,150
38,100 Actel Corp.*............................ 1,738,313
5,200 Adaptec, Inc.*.......................... 118,300
600 ADE Corp.*.............................. 11,475
41,400 Aeroflex, Inc.*......................... 2,057,063
2,000 Alliance Semiconductor Corp.*........... 49,125
1,600 Alpha Industries, Inc.*................. 70,500
900 American Superconductor Corp.*.......... 43,425
200 American Technical Ceramics
Corporation*............................ 5,575
900 American Xtal Technology, Inc.*......... 38,925
1,900 Amphenol Corp.*......................... 125,756
550 Anaren Microwave, Inc.*................. 72,179
600 APA Optics, Inc.*....................... 8,550
300 Armor Holdings, Inc.*................... 3,900
5,800 Arrow Electronics, Inc.*................ 179,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
63
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Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
400 AstroPower, Inc.*....................... $ 10,850
1,300 ATMI, Inc.*............................. 60,450
1,000 Audiovox Corp.*......................... 22,063
2,600 Avnet, Inc.............................. 154,050
900 Barnes Group, Inc....................... 14,681
800 Benchmark Electronics, Inc.*............ 29,250
900 Black Box Corporation*.................. 71,255
600 California Amplifier, Inc.*............. 27,450
1,000 Caliper Technologies Corp.*............. 46,000
2,800 Cellstar Corp.*......................... 7,788
1,400 Cobalt Networks, Inc.*.................. 81,025
900 Cohu, Inc............................... 24,272
1,500 Cree, Inc.*............................. 200,250
1,300 CTS Corp................................ 58,500
2,700 Dallas Semiconductor Corp............... 110,025
1,900 DDi Corp.*.............................. 54,150
24,000 DuPont Photomasks, Inc.*................ 1,644,000
600 8x8, Inc.*.............................. 7,200
700 Emcore Corp.*........................... 84,000
4,700 Energizer Holdings, Inc.*............... 85,775
600 Energy Conversion Devices, Inc.*........ 15,225
800 Esterline Technologies Corp.*........... 11,900
21,900 Exar Corp.*............................. 1,909,406
3,700 Fairchild Semiconductor International,
Inc.*................................... 149,850
7,200 Finisar Corporation*.................... 188,550
1,200 FSI International, Inc.*................ 26,025
1,700 General Semiconductor, Inc.*............ 25,075
8,800 Handspring, Inc.*....................... 237,600
1,000 Helix Technology Corp................... 39,000
49,900 Herley Industries, Inc.*................ 941,863
1,100 Hughes Supply, Inc...................... 21,725
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
1,200 Hutchinson Technology, Inc.*............ $ 17,100
400 Ibis Technology Corp.*.................. 24,150
1,700 Imation Corporation*.................... 49,938
3,500 Integrated Device Technology, Inc.*..... 209,563
45,800 Integrated Silicon Solution, Inc.*...... 1,740,400
2,900 International Rectifier Corp.*.......... 162,400
1,000 Intersil Holding Corp.*................. 54,063
1,700 Irvine Sensors Corp.*................... 7,225
600 IXYS Corp.*............................. 32,025
1,000 JNI Corp.*.............................. 31,625
4,000 KEMET Corp.*............................ 100,250
1,300 Kent Electronics Corp.*................. 38,756
1,500 Kopin Corp.*............................ 103,875
2,200 Lattice Semiconductor Corp.*............ 152,075
13,900 Litton Industries, Inc.*................ 583,800
2,200 LTX Corp.*.............................. 76,863
1,000 Mercury Computer Systems, Inc.*......... 32,313
1,700 Methode Electronics..................... 65,663
2,500 Microchip Technology, Inc.*............. 145,664
600 Microsemi Corp.*........................ 20,363
500 Microvision, Inc.*...................... 24,500
600 MIPS Technologies, Inc.*................ 25,500
1,192 MIPS Technologies, Inc.*................ 45,884
1,500 MMC Networks, Inc.*..................... 80,156
2,600 MRV Communications, Inc.*............... 174,850
100 New Focus, Inc.*........................ 8,213
103,945 Oak Technology, Inc.*................... 2,241,314
500 Park Electrochemical Corp............... 18,031
8,500 Parlex Corp.*........................... 358,063
</TABLE>
The accompanying notes are an integral part of the financial statements.
64
<PAGE> 65
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
600 Pericom Semiconductor Corp.*............ $ 40,800
1,100 Photronics, Inc.*....................... 31,213
1,300 Pioneer Standard Electronics............ 19,175
41,900 Pixelworks, Inc.*....................... 953,225
800 Plexus Corp.*........................... 90,400
1,300 Power Integrations, Inc.*............... 30,631
1,500 Power-One, Inc.*........................ 170,906
1,200 Quantum Effect Devices, Inc.*........... 68,400
900 Quicklogic Corp.*....................... 20,025
60,300 REMEC, Inc.*............................ 2,525,063
600 Research Frontiers, Inc.*............... 18,000
600 Rogers Corp.*........................... 21,000
700 Rudolph Technologies, Inc.*............. 27,125
840 Sanmina Corp.*.......................... 71,820
600 SCG Holding Corp*....................... 13,125
54,315 Semtech Corp.*.......................... 4,154,251
43,900 Sensormatic Electronics Corp.*.......... 694,169
1,200 Silicon Image, Inc.*.................... 59,850
200 Silicon Laboratories, Inc.*............. 10,625
1,600 Silicon Valley Group, Inc.*............. 41,400
1,100 Siliconix, Inc.*........................ 74,250
1,000 Sipex Corp.*............................ 27,688
2,200 Somera Communications, Inc.*............ 29,975
800 Spectra-Physics Lasers, Inc.*........... 55,950
1,400 SpeedFam-IPEC, Inc.*.................... 25,463
300 Standard Microsystems Corp.*............ 4,613
1,100 Stoneridge, Inc.*....................... 9,625
16,400 Stratos Lightwave, Inc.*................ 457,150
600 Supertex, Inc.*......................... 30,150
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
800 Technitrol, Inc......................... $ 77,500
800 Telaxis Communications Corp.*........... 25,000
800 Telcom Semiconductor, Inc.*............. 32,050
1,200 3dfx Interactive, Inc.*................. 9,338
2,400 Titan Corp.*............................ 107,400
1,800 Transwitch Corp.*....................... 138,938
1,200 Trimble Navigation Ltd.*................ 58,575
21,100 TriQuint Semiconductor, Inc.*........... 2,019,007
200 Universal Display Corp.*................ 5,938
2,100 Viasystems Group, Inc.*................. 33,994
2,200 Virata Corp.*........................... 131,175
1,600 Vyyo, Inc.*............................. 43,200
1,900 Wesco International, Inc.*.............. 18,169
2,800 World Access, Inc.*..................... 30,975
700 Zoran Corp.*............................ 46,156
-------------
30,097,393
-------------
ENTERTAINMENT & LEISURE -- 0.8%
600 Anchor Gaming*.......................... 28,763
1,300 Argosy Gaming Company*.................. 18,688
1,100 Avid Technology, Inc.*.................. 13,200
1,100 Bally Total Fitness Holdings Corp.*..... 27,913
1,900 Boca Resorts, Inc.*..................... 18,763
3,600 Callaway Golf Co........................ 58,725
700 Championship Auto Racing Teams, Inc.*... 17,850
1,000 Concord Camera Corp.*................... 20,875
500 Direct Focus, Inc.*..................... 24,500
2,000 ESS Technology*......................... 29,000
1,600 Gaylord Entertainment Company........... 34,400
400 GC Companies, Inc.*..................... 8,950
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE> 66
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
6,000 Harrah's Entertainment, Inc.*........... $ 125,625
8,200 Hasbro, Inc............................. 123,513
2,200 Hollywood Entertainment Corp.*.......... 17,325
1,000 Hollywood.com, Inc.*.................... 7,750
2,500 International Speedway Corp............. 103,438
900 Jakks Pacific, Inc.*.................... 13,275
1,900 Macrovision Corp.*...................... 121,452
1,200 Pinnacle Entertainment, Inc.*........... 23,325
2,200 Polaroid Corp........................... 39,738
3,700 Premier Parks, Inc.*.................... 84,175
3,000 SFX Entertainment, Inc. - Class A*...... 135,938
2,000 Speedway Motorsports, Inc.*............. 46,000
900 THQ, Inc.*.............................. 10,969
1,700 Ticketmaster Online-CitySearch, Inc.*... 27,094
61,000 Westwood One, Inc. *.................... 2,081,626
500 World Wrestling Federation
Entertainment, Inc.*.................... 10,406
------------
3,273,276
------------
ENVIRONMENTAL -- 0.0%
2,400 Apria Healthcare Group, Inc.*........... 29,400
------------
FINANCIAL SERVICES -- 2.4%
1,100 Affiliated Managers Group*.............. 50,050
1,500 Alaska Communications Systems Group,
Inc.*................................... 15,563
700 Alexandria Real Estate Equities......... 24,019
300 Alleghany Corp.*........................ 50,400
3,200 Allied Capital Corp..................... 54,400
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
1,000 American Industrial Properties REIT..... $ 13,563
7,100 Ameritrade Holding Corp.*............... 82,538
800 Amli Residential Properties............. 18,850
600 Ampal-American Israel Corp. - Class
A*...................................... 9,000
3,100 Apartment Investment & Management Co.... 134,075
6,200 Archstone Communities Trust............. 130,588
3,100 Arden Realty, Inc....................... 72,850
3,100 AvalonBay Communities, Inc.............. 129,425
400 Bancfirst Corp.......................... 12,600
900 Bedford Property Investors.............. 16,706
600 Blackrock, Inc.*........................ 17,400
2,000 BOK Financial Corporation*.............. 35,125
800 Boykin Lodging Company.................. 10,800
1,000 Bradley Real Estate, Inc................ 21,313
1,700 Brandywine Realty Trust................. 32,513
2,100 BRE Properties.......................... 60,638
1,800 Camden Property Trust................... 52,875
1,000 Capital Automotive...................... 14,125
3,500 Capitol Federal Financial............... 38,719
3,100 CarrAmerica Realty Corp................. 82,150
1,200 CBL & Associates Properties............. 29,925
1,800 Centura Banks, Inc...................... 61,088
2,200 Champion Enterprises, Inc.*............. 10,725
3,626 Charles Schwab Corp. (The).............. 121,924
1,000 Charter Municipal Mortgage Acceptance
Company................................. 12,313
1,300 Chateau Communities, Inc................ 36,725
</TABLE>
The accompanying notes are an integral part of the financial statements.
66
<PAGE> 67
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
700 Chelsea GCA Realty, Inc................. $ 24,194
1,000 Colonial Properties Trust............... 27,375
1,400 Commercial NET Lease Realty............. 14,700
2,300 Community First Bankshares.............. 37,519
1,800 Cornerstone Realty Income Trust......... 18,000
6,800 Countrywide Credit Industries, Inc...... 206,125
1,500 Cousins Properties, Inc................. 57,750
2,100 Credit Acceptance Corp.*................ 11,681
5,700 Crescent Real Estate Equities Co........ 116,850
600 Dain Rauscher Corp...................... 39,600
1,900 Doral Financial Corp.................... 21,731
5,900 Duke-Weeks Realty Corporation........... 132,013
2,000 E-Loan, Inc.*........................... 9,500
1,100 East-West Bancorp, Inc.................. 15,813
700 Eastgroup Properties.................... 14,744
1,700 Eaton Vance Corp........................ 78,625
4,200 Edwards (A.G.), Inc..................... 163,800
300 Entertainment Properties Trust.......... 4,144
800 Essex Property Trust, Inc............... 33,600
1,900 Federal Realty Investment Trust......... 38,000
3,800 Federated Investors, Inc................ 133,238
1,500 Financial Security Assurance Holdings
Ltd..................................... 113,813
1,800 First Industrial Realty Trust........... 53,100
9,200 First Security Corp..................... 124,775
600 4 Kids Entertainment, Inc.*............. 15,638
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
2,700 Franchise Finance Corp. of America...... $ 62,100
3,400 Fulton Financial Corp................... 60,138
1,200 Gables Residential Trust................ 30,900
500 GBC Bancorp/California.................. 14,625
2,400 General Growth Properties............... 76,200
1,400 Glenborough Realty Trust, Inc........... 24,413
1,100 Glimcher Realty Trust................... 15,813
800 Great Lakes REIT, Inc................... 13,600
700 Greater Bay Bancorp..................... 32,725
500 Hancock Holding Co...................... 17,000
2,400 Health Care Property Investors, Inc..... 65,400
1,300 Health Care REIT, Inc................... 21,125
1,900 Healthcare Realty Trust, Inc............ 32,419
2,100 Heller Financial, Inc................... 43,050
2,900 Highwoods Properties, Inc............... 69,600
900 Home Properties Of NY, Inc.............. 27,000
2,600 Hospitality Properties Trust............ 58,663
6,400 HRPT Properties Trust................... 39,200
3,400 IndyMac Mortgage Holdings, Inc.......... 46,113
1,600 Innkeepers USA Trust.................... 14,600
1,500 Investment Technology Group, Inc.*...... 59,250
1,500 IRT Property Co......................... 12,750
1,000 Irwin Financial Corp.................... 14,438
5,100 iStar Financial, Inc.................... 106,781
1,600 JDN Realty Corp......................... 16,300
1,100 Jefferies Group, Inc.................... 22,206
1,300 John Nuveen Co.......................... 54,519
800 JP Realty, Inc.......................... 14,250
</TABLE>
The accompanying notes are an integral part of the financial statements.
67
<PAGE> 68
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,800 Kimco Realty Corp....................... $ 114,800
5,200 Knight Trading Group, Inc.*............. 155,025
1,300 Koger Equity, Inc....................... 21,938
99,000 Labranche & Co., Inc.*.................. 1,423,125
2,700 Legg Mason, Inc......................... 135,000
2,000 Liberty Financial Companies............. 43,875
3,100 Liberty Property Trust.................. 80,406
1,600 Macerich Company (The).................. 35,300
2,700 Mack-Cali Realty Corp................... 69,356
1,100 MAF Bancorp, Inc........................ 20,006
1,100 Manufactured Home Communities........... 26,331
6,700 Meditrust Corp.......................... 25,125
800 Mid-America Apartment Communities,
Inc..................................... 19,200
500 Mid-State Bancshares.................... 13,625
1,100 Mills Corp.............................. 20,694
1,400 Morgan Keegan, Inc...................... 20,650
800 National Discounts Brokers Group,
Inc.*................................... 25,500
600 National Golf Properties, Inc........... 12,675
2,200 Nationwide Health Properties, Inc....... 30,663
2,300 Neuberger Berman, Inc................... 106,950
4,200 New Plan Excel Realty Trust............. 54,600
1,200 Pacific Capital Bancorp................. 30,075
1,000 Pacific Gulf Properties, Inc............ 25,063
1,000 Pan Pacific Retail Properties, Inc...... 20,125
600 Pennsylvania Real Estate Investment
Trust................................... 10,275
2,100 Phoenix Investment Partners............. 22,050
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,200 Pioneer Group, Inc. (The)*.............. $ 50,850
1,000 Plum Creek Timber Company, Inc.......... 26,000
1,800 Post Properties, Inc.................... 79,200
1,700 Prentiss Properties Trust............... 40,800
700 Prime Group Realty Trust................ 10,631
5,500 Prison Realty Trust, Inc................ 16,844
7,000 Prologis Trust.......................... 149,188
5,900 Public Storage, Inc..................... 138,281
2,200 Raymond James Financial Corp............ 49,500
2,000 Reckson Associates Realty............... 47,500
2,400 Regency Realty Corp..................... 57,000
2,100 Republic Bancorp........................ 18,769
2,300 Republic Security Financial Corp........ 11,500
1,200 RFS Hotel Investors, Inc................ 14,100
700 Ryland Group, Inc....................... 15,488
1,400 Shurgard Storage Centers, Inc........... 31,500
5,600 Simon Property Group, Inc............... 124,250
1,100 SL Green Realty Corp.................... 29,425
1,000 Smith (Charles E.) Residential Realty,
Inc..................................... 38,000
600 Southwest Securities Group.............. 22,350
600 Sovran Self Storage, Inc................ 12,863
3,000 Spieker Properties, Inc................. 138,000
1,200 Summit Properties, Inc.................. 25,200
800 Sun Communities, Inc.................... 26,750
5,600 T. Rowe Price Associates, Inc........... 238,000
2,500 Taubman Centers, Inc.................... 27,500
700 Town & Country Trust.................... 12,031
1,000 Tucker Anthony Sutro.................... 18,000
2,700 United Asset Management Corp............ 63,113
</TABLE>
The accompanying notes are an integral part of the financial statements.
68
<PAGE> 69
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
4,800 United Dominion Realty Trust............ $ 52,800
800 Urban Shopping Centers, Inc............. 26,950
400 Value Line, Inc......................... 15,400
4,000 Vornado Realty Trust.................... 139,000
2,000 Waddell & Reed Financial, Inc........... 65,625
1,300 Weingarten Realty Investors............. 52,488
3,200 Westfield America, Inc.................. 43,000
1,300 WFS Financial, Inc...................... 22,425
83,700 Wit Soundview Group, Inc.*.............. 898,469
------------
9,435,713
------------
FOOD RETAILERS -- 0.2%
5,100 Delhaize America, Inc................... 90,206
1,800 Great Atlantic & Pacific Tea Co.
(The)................................... 29,925
2,000 Hannaford Brothers Co................... 143,750
5,800 HomeGrocer.com*......................... 34,982
3,000 7-Eleven, Inc.*......................... 41,250
10,500 Webvan Group, Inc.*..................... 76,454
2,200 Weis Markets, Inc....................... 72,050
1,200 Whole Foods Market, Inc.*............... 49,575
1,100 Wild Oats Markets, Inc.*................ 13,819
6,400 Winn-Dixie Stores, Inc.................. 91,600
------------
643,611
------------
FOREST PRODUCTS & PAPER -- 0.5%
700 Aremissoft Corp.*....................... 21,788
2,700 Bemis Co., Inc.......................... 90,788
2,900 Boise Cascade Corp...................... 75,038
2,400 Bowater, Inc............................ 105,900
1,600 Buckeye Technologies, Inc.*............. 35,100
1,200 Caraustar Industries, Inc............... 18,150
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
800 Chesapeake Corp......................... $ 23,700
4,100 Consolidated Papers, Inc................ 149,906
100 Deltic Timber Corp...................... 2,138
4,700 Earthshell Corp.*....................... 14,247
2,900 Gartner Group, Inc.*.................... 28,638
2,500 Gaylord Container CP*................... 6,719
3,900 Georgia-Pacific Corporation (Timber
Group).................................. 84,338
2,000 Glatfelter (P.H.) Co.................... 20,375
1,100 Greif Brothers Corp..................... 33,825
200 Ivex Packaging Corp.*................... 2,225
2,400 Longview Fibre Co....................... 26,550
5,200 Louisiana-Pacific Corp.................. 56,550
2,200 Martin Marietta Materials............... 88,963
5,000 Packaging Corp. Of America*............. 50,625
8,300 Pactiv Corp.*........................... 65,363
2,800 Playtex Products, Inc.*................. 31,675
700 Pope & Talbot, Inc...................... 11,200
1,500 Potlatch Corp........................... 49,688
1,300 Rayonier, Inc........................... 46,638
700 Schweitzer-Mauduit International,
Inc..................................... 8,750
9,400 Smurfit-Stone Container Corp.*.......... 121,025
4,800 Sonoco Products Co...................... 98,700
3,400 St. Joe Company (The)................... 102,000
2,700 Temple-Inland, Inc...................... 113,400
1,600 United Stationers, Inc.*................ 51,800
1,000 Universal Forest Products............... 13,750
2,400 Wausau-Mosinee Paper Corp............... 20,550
5,200 Westvaco Corp........................... 129,025
5,200 Willamette Industries, Inc.............. 141,700
-------------
1,940,827
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
69
<PAGE> 70
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
HEALTH CARE PROVIDERS -- 3.7%
500 Abiomed, Inc.*.......................... $ 15,375
600 Accredo Health, Inc.*................... 20,738
137,600 Beverly Enterprises, Inc.*.............. 387,000
9,400 Caremark Rx, Inc.*...................... 64,038
87,900 Community Health Systems*............... 1,422,881
700 Cooper Companies, Inc................... 25,463
400 CorVel Corp.*........................... 9,875
2,700 Covance, Inc.*.......................... 23,794
86,000 Coventry Health Care, Inc.*............. 1,146,217
600 Cryolife, Inc.*......................... 13,800
1,200 Diametrics Medical, Inc.*............... 6,788
44,820 Eclipsys Corp.*......................... 336,150
800 Emisphere Technologies, Inc.*........... 34,088
1,700 Express Scripts, Inc.*.................. 105,613
2,300 First Health Group Corp.*............... 75,469
14,900 Health Management Associates, Inc. -
Class A*................................ 194,631
228,700 HEALTHSOUTH Corp.*...................... 1,643,781
3,000 Hooper Holmes, Inc...................... 24,000
1,900 Human Genome Sciences, Inc.*............ 253,413
1,700 Idexx Laboratories Corp.*............... 38,888
400 Impath, Inc.*........................... 21,700
7,600 Laboratory Corp. of America Holdings*... 586,150
1,600 LifePoint Hospital, Inc.*............... 35,600
2,500 Lincare Holdings, Inc.*................. 61,563
133,900 Manor Care, Inc.*....................... 937,300
418,900 Mid Atlantic Medical Services*.......... 5,655,150
1,100 National Health Investors............... 12,100
1,100 Novamed Eyecare, Inc*................... 9,694
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,300 Orthodontic Centers Of America*......... $ 52,038
900 Province Healthcare Co.*................ 32,513
106,600 Quorum Health Group, Inc.*.............. 1,099,313
600 Rehabcare Corp.*........................ 16,350
2,100 Renal Care Group, Inc.*................. 51,352
400 Rightchoice Managed Care, Inc.*......... 6,300
1,400 Silicon Storage Technology, Inc.*....... 123,638
1,000 Sunrise Assisted Living, Inc.*.......... 18,500
3,800 Total Renal Care Holdings*.............. 22,800
1,600 Triad Hospitals, Inc.*.................. 38,700
1,400 Universal Health Services, Inc. - Class
B*...................................... 91,700
1,300 Valentis, Inc.*......................... 15,275
3,200 Ventas, Inc.*........................... 10,200
1,000 Veterinary Centers of America*.......... 13,750
-------------
14,753,688
-------------
HEAVY CONSTRUCTION -- 0.1%
1,000 Blount International, Inc.*............. 7,688
2,900 Centex Corp............................. 68,150
2,100 Fairfield Communities, Inc.*............ 16,538
1,900 Foster Wheeler Corp..................... 16,388
1,300 Granite Construction, Inc............... 31,850
3,000 Hillenbrand Industries.................. 93,938
2,200 Kaufman & Broad Home Corp............... 43,588
5,800 Spectrasite Holdings, Inc.*............. 164,575
-------------
442,715
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
70
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American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
HEAVY MACHINERY -- 2.3%
2,800 AGCO Corp............................... $ 34,300
3,300 American Standard Companies*............ 135,300
1,000 Applied Industrial Technology, Inc...... 16,375
1,800 Applied Power, Inc...................... 60,300
700 Applied Science & Technology*........... 18,113
600 Arguss Holdings, Inc.*.................. 11,325
900 Astec Industries, Inc.*................. 22,838
1,400 Asyst Technologies, Inc.*............... 47,950
4,300 Black & Decker Corp. (The).............. 169,044
1,100 Briggs & Stratton Corp.................. 37,675
41,900 Brooks Automation, Inc.*................ 2,678,981
97,600 CNH Global N.V.......................... 902,800
2,400 Cooper Cameron Corp.*................... 158,400
2,000 Cummins Engine Co., Inc................. 54,500
800 Cuno, Inc.*............................. 18,500
1,100 Detroit Diesel Corp..................... 16,225
2,600 Dole Food Company....................... 36,400
2,200 Donaldson Co., Inc...................... 43,450
1,800 Dycom Industries, Inc.*................. 82,800
900 Electroglas, Inc.*...................... 19,350
1,700 Flowserve Corp.......................... 25,606
700 Gardner Denver, Inc.*................... 12,513
700 Gasonics International Corp.*........... 27,606
56,900 Genus, Inc.*............................ 465,869
1,000 Graco, Inc.............................. 32,500
1,400 Idex Corp............................... 44,188
2,400 Input/Output, Inc.*..................... 20,250
1,200 Insituform Technologies, Inc.*.......... 32,550
800 Ionics, Inc.*........................... 24,500
5,400 Johns Manville Corporation.............. 71,213
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,400 Kaydon Corp............................. $ 29,400
1,400 Kennametal, Inc......................... 30,013
1,100 Kulicke & Soffa Industries*............. 65,313
7,400 Lam Research Corp.*..................... 277,500
500 Lawson Products......................... 12,313
2,700 Lennox International, Inc............... 35,775
2,000 Lincoln Electric Holdings, Inc.......... 28,500
61,100 Lindsay Manufacturing Co................ 1,199,088
1,200 Manitowoc Co............................ 32,100
1,700 Milacron, Inc........................... 24,650
1,400 Modine Manufacturing Co................. 37,800
2,600 Mohawk Industries, Inc.*................ 56,550
800 Nordson Corp............................ 40,500
500 Nortek, Inc.*........................... 9,875
2,700 Oakley, Inc.*........................... 31,050
5,800 Pall Corp............................... 107,300
2,200 Paxar Corp.*............................ 26,263
2,300 Pentair, Inc............................ 81,650
1,500 Presstek, Inc.*......................... 24,469
1,000 Regal Beloit............................ 16,063
500 Robbins & Myers, Inc.................... 11,406
1,000 RTI International Metals, Inc.*......... 11,375
1,300 Sauer, Inc.............................. 12,838
800 Scott Technologies, Inc.*............... 13,750
1,300 Semitool, Inc.*......................... 22,506
2,300 Smith International, Inc.*.............. 167,469
900 Specialty Equipment Cos., Inc.*......... 24,413
600 SPS Technologies, Inc.*................. 24,638
27,900 Stanley Works (The)..................... 662,625
1,300 Stewart & Stevenson Services, Inc....... 19,581
900 Tecumseh Products Co.................... 34,369
400 Tennant Co.............................. 15,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
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Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,300 Terex Corp.*............................ $ 18,363
2,600 Thermo Fibertek, Inc.*.................. 12,350
2,900 Timken Co. (The)........................ 54,013
600 Toro Co................................. 19,763
1,000 Ultratech Stepper, Inc.*................ 14,875
1,300 United Dominion Industries Ltd.......... 22,100
2,600 Unova, Inc.*............................ 19,013
1,400 Varian Medical Systems, Inc.*........... 54,775
1,500 Varian Semiconductor Equipment*......... 94,219
1,500 Varian, Inc.*........................... 69,188
4,400 W.W. Grainger, Inc...................... 135,575
1,400 Watsco, Inc............................. 17,500
500 Woodward Governor Co.................... 14,156
1,800 YORK International Corp................. 45,450
------------
9,098,903
------------
HOME CONSTRUCTION, FURNISHINGS &
APPLIANCES -- 0.3%
1,100 Applica, Inc.*.......................... 12,444
6,500 Clayton Homes, Inc...................... 52,000
2,900 DR Horton, Inc.......................... 39,331
1,900 Ethan Allen Interiors, Inc.............. 45,600
2,300 Furniture Brands International, Inc.*... 34,788
800 Harman International Industries, Inc.... 48,800
2,800 HON Industries.......................... 65,800
1,900 Kimball International................... 28,025
2,900 La-Z-Boy, Inc........................... 40,600
9,200 Leggett & Platt, Inc.................... 151,800
4,100 Maytag Corp............................. 151,188
1,000 MDC Holdings, Inc....................... 18,625
3,700 Miller (Herman), Inc.................... 95,738
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
3,200 MP3.com*................................ $ 43,400
300 National Presto Industries, Inc......... 9,225
400 NVR, Inc.*.............................. 22,800
1,100 Palm Harbor Homes, Inc.*................ 15,950
600 Parkervision, Inc.*..................... 30,263
2,000 Pulte Corp.............................. 43,250
500 Salton, Inc.*........................... 18,438
1,400 Standard-Pacific Corp................... 14,000
2,300 Steelcase, Inc.......................... 39,100
6,200 Sunbeam Corporation*.................... 21,313
1,700 Toll Brothers, Inc.*.................... 34,850
600 Universal Electronics, Inc.*............ 14,738
2,200 Walter Industries, Inc.................. 25,163
100 Wilmar Industries, Inc.*................ 1,825
-------------
1,119,054
-------------
HOUSEHOLD PRODUCTS -- 0.2%
300 CoorsTek, Inc.*......................... 13,800
5,400 Fortune Brands, Inc..................... 124,538
1,500 Fossil, Inc.*........................... 29,156
3,400 Gentex Corp.*........................... 85,425
1,900 Lancaster Colony Corp................... 37,050
800 Libbey, Inc............................. 25,700
1,100 Lilly Industries, Inc................... 33,069
800 Oneida Ltd.............................. 14,200
7,700 Owens-Illinois, Inc.*................... 89,994
5,100 RPM, Inc. of Ohio....................... 51,638
600 Simpson Manufacturing Co., Inc.*........ 28,688
2,800 Snap-On, Inc............................ 74,550
2,000 Valspar Corp............................ 67,500
-------------
675,308
-------------
INDUSTRIAL - DIVERSIFIED -- 0.1%
1,900 Armstrong Holdings, Inc................. 29,094
</TABLE>
The accompanying notes are an integral part of the financial statements.
72
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Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
2,300 Blyth Industries, Inc................... $ 67,850
1,500 Catalytica, Inc.*....................... 16,500
200 ESCO Electronics Corp.*................. 3,400
1,300 FEI Company*............................ 39,650
1,700 Hexcel Corp.*........................... 16,150
1,500 Identix, Inc.*.......................... 23,531
400 LightPath Technologies, Inc. - Class
A*...................................... 15,925
400 Nacco Industries........................ 14,050
3,800 Phelps Dodge Corp....................... 141,313
1,400 Symyx Technologies*..................... 59,653
1,400 WMS Industries, Inc.*................... 21,613
2,600 Yankee Candle Co., Inc. (The)*.......... 56,225
1,500 Zomax, Inc.*............................ 19,688
----------
524,642
----------
INDUSTRIAL MACHINE SERVICES -- 0.0%
1,800 Fastenal Co............................. 91,125
----------
INSURANCE -- 2.1%
1,000 Advance Paradigm, Inc.*................. 20,500
1,800 Alfa Corporation........................ 31,500
14,000 Allmerica Financial Corp................ 733,251
3,300 AMBAC Financial Group, Inc.............. 180,881
2,500 American Financial Group, Inc........... 62,031
1,200 American National Insurance............. 61,200
1,200 Amerus Life Holdings, Inc............... 24,750
1,000 Argonaut Group, Inc..................... 17,125
600 Blanch (EW) Holdings, Inc............... 12,188
600 Brown & Brown, Inc...................... 31,200
1,600 Commerce Group, Inc..................... 47,200
16,900 Conseco, Inc............................ 164,775
2,400 Crawford & Company...................... 26,400
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
1,000 Delphi Financial Group*................. $ 33,938
1,800 Enhance Financial Services Group........ 25,875
3,000 Erie Indemnity Company.................. 94,500
1,500 Everest Re Group, Ltd................... 49,313
1,400 FBL Financial Group, Inc................ 22,050
25,500 Fidelity National Financial, Inc........ 466,969
3,100 First American Financial Corp........... 44,369
5,700 Foundation Health Systems*.............. 74,100
3,300 Fremont General Corp.................... 12,994
14,900 Gallagher A J & Co...................... 625,800
1,900 Great American Financial Resources,
Inc..................................... 33,606
1,400 Harleysville Group, Inc................. 23,450
2,300 HCC Insurance Holdings, Inc............. 43,413
600 Hilb, Rogal & Hamilton Co., Office of... 20,813
1,900 Horace Mann Educators Corp.............. 28,500
1,400 HSB Group, Inc.......................... 43,575
7,900 Humana, Inc.*........................... 38,513
100 Insurance Auto Auctions, Inc.*.......... 2,113
600 Kansas City Life Insurance Co........... 16,125
600 Landamerica Financial Group, Inc........ 13,763
2,600 Leucadia National Corp.................. 59,313
900 Liberty Corp............................ 37,800
300 Markel Corp.*........................... 42,488
1,100 Medical Assurance, Inc.*................ 12,375
2,600 Mercury General Corp.................... 61,425
2,200 Mony Group, Inc......................... 74,388
</TABLE>
The accompanying notes are an integral part of the financial statements.
73
<PAGE> 74
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
200 National Western Life Insurance Co. -
Class A*................................ $ 14,400
1,100 Nationwide Financial Services........... 36,163
2,800 Ohio Casualty Corp...................... 29,750
5,900 Old Republic International Corp......... 97,350
64,600 Oxford Health Plans*.................... 1,538,288
2,000 Pacificare Health Systems*.............. 120,375
200 PMA Capital Corporation................. 3,800
2,100 PMI Group, Inc. (The)................... 99,750
1,400 Presidential Life Corp.................. 19,425
3,000 Protective Life Corp.................... 79,875
1,700 Radian Group, Inc....................... 87,975
1,900 Reinsurance Group Of America............ 57,238
5,400 Reliance Group Holdings................. 4,050
9,900 RenaissanceRE Holdings Ltd.............. 431,269
500 RLI Corp................................ 17,375
7,600 SAFECO Corp............................. 151,050
600 SCPIE Holdings, Inc..................... 12,300
1,300 Selective Insurance Group............... 24,700
19,700 St. Paul Companies, Inc. (The).......... 672,263
1,600 Stancorp Financial Group................ 51,400
1,800 State Auto Financial Corp............... 21,375
400 The Midland Co.......................... 9,800
7,700 Torchmark Corp.......................... 190,094
1,500 Transatlantic Holdings, Inc............. 125,625
900 Trenwick Group, Inc..................... 13,106
600 Triad Guaranty, Inc.*................... 13,763
1,800 Trigon Healthcare, Inc.*................ 92,813
3,400 21st Century Insurance Group............ 53,550
2,200 UICI*................................... 14,438
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
31,500 W.R. Berkley Corp....................... $ 590,625
2,100 Wellpoint Health Networks, Inc.*........ 152,119
800 Zenith National Insurance Corp.......... 17,000
------------
8,257,673
------------
LODGING -- 0.3%
2,000 Aztar Corp.*............................ 31,000
2,500 Choice Hotels International, Inc.*...... 24,844
800 Crestline Capital Corp.*................ 13,650
1,700 Equity Inns, Inc........................ 10,413
500 Excel Technology, Inc.*................. 25,156
4,500 Extended Stay America, Inc.*............ 41,625
17,800 Hilton Hotels Corp...................... 166,875
10,400 Host Marriott Corp...................... 97,500
1,400 Isle of Capri Casinos, Inc.*............ 18,988
4,200 Mandalay Resort Group*.................. 84,000
200 Marcus Corporation...................... 2,425
5,200 MGM Grand, Inc.......................... 167,050
14,300 Park Place Entertainment Corp.*......... 174,281
1,000 Pegasus Systems, Inc.*.................. 10,875
2,300 Prime Hospitality Corp.*................ 21,706
3,000 Sodexho Marriott Services, Inc.......... 48,000
1,900 Station Casinos, Inc.*.................. 47,500
1,300 Vail Resorts, Inc.*..................... 21,206
7,900 Wyndham International, Inc.*............ 19,750
------------
1,026,844
------------
MEDIA - BROADCASTING & PUBLISHING -- 4.6%
3,100 American Greetings Corp................. 58,900
</TABLE>
The accompanying notes are an integral part of the financial statements.
74
<PAGE> 75
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
200 AT&T Liberty Media Group*............... $ 4,850
1,200 Banta Corp.............................. 22,725
5,600 Belo (A.H.) Corp........................ 96,950
900 BHC Communications...................... 136,800
1,700 Central Newspapers, Inc................. 107,525
8,000 Charter Communications, Inc. - Class
A*...................................... 131,500
1,500 Chris-Craft Industries, Inc.*........... 99,094
1,900 Citadel Communications Corp.*........... 66,381
1,200 COX Radio, Inc.*........................ 33,600
1,300 Cumulus Media, Inc.*.................... 11,863
68,550 Emmis Communications Corp. - Class A*... 2,836,247
1,600 Entercom Communications Corp.*.......... 78,000
3,200 Harte-Hanks Communications.............. 80,000
3,500 Hispanic Broadcasting Corp.*............ 115,938
4,800 Hollinger International, Inc............ 65,400
1,500 Houghton Mifflin Co..................... 70,031
1,000 Information Holdings, Inc.*............. 37,000
2,300 Insight Communications*................. 35,938
2,100 Journal Register Co.*................... 38,325
2,700 Knight-Ridder, Inc...................... 143,606
2,100 Lee Enterprises......................... 48,956
800 Liberty Digital, Inc.*.................. 24,000
600 Lodgenet Entertainment Corp.*........... 14,550
700 Martha Stewart Living Omnimedia*........ 15,400
1,900 Mastec, Inc.*........................... 72,556
2,100 McClatchy Company....................... 69,563
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
200 Media 100, Inc.*........................ $ 5,150
6,800 Media General, Inc. - Class A........... 330,225
116,300 Mediacom Communications Corp.*.......... 1,788,113
2,400 Meredith Corp........................... 81,000
500 Meta Group, Inc.*....................... 9,625
1,400 On Command Corporation*................. 19,950
1,700 Pac-West Telecomm, Inc.*................ 34,000
51,380 Pegasus Communications Corp.*........... 2,520,831
1,100 Playboy Enterprises*.................... 14,163
2,600 Price Communications Corp.*............. 61,263
9,500 Primedia, Inc.*......................... 216,125
400 Pulitzer, Inc........................... 16,875
1,500 R.H. Donnelley Corp.*................... 29,063
1,200 Radio One, Inc.*........................ 35,475
2,000 Radio One, Inc.*........................ 44,125
129,000 Readers Digest Association, Inc. (The) -
Class A................................. 5,127,750
1,600 Regent Communications, Inc.*............ 13,750
700 Saga Communications, Inc.*.............. 15,400
400 Salem Communications Corp. - Class A*... 3,713
800 Scholastic Corp.*....................... 48,900
3,100 Scripps Co. (E.W.)...................... 152,675
2,100 Sinclair Broadcast Group, Inc.*......... 23,100
88,280 Spanish Broadcasting System, Inc.*...... 1,815,258
2,000 TCI Satellite Entertainment, Inc.*...... 17,375
82,200 Thomas Nelson, Inc...................... 703,838
800 Tivo, Inc.*............................. 28,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
75
<PAGE> 76
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
7,300 TV Guide, Inc.*......................... $ 250,025
400 United Television, Inc.................. 51,500
1,800 Valuevision International, Inc.*........ 43,200
300 Washington Post......................... 143,400
2,900 Wiley (John) & Sons..................... 65,250
1,400 Wink Communications, Inc.*.............. 42,700
1,000 Worldgate Communications*............... 17,750
500 Young Broadcasting, Inc.*............... 12,844
-------------
18,298,109
-------------
MEDICAL & BIO-TECHNOLOGY -- 0.7%
11,600 Aurora Biosciences Corp.*............... 790,975
2,500 Bio-Technology General Corp.*........... 32,969
1,000 Corixa Corp.*........................... 42,938
300 Diversa Corp.*.......................... 9,938
200 Exelixis, Inc.*......................... 6,675
38,300 Genzyme Molecular Oncology*............. 531,413
14,300 Invitrogen Corp.*....................... 1,075,404
2,200 Lexicon Genetics, Inc.*................. 75,625
900 Maxim Pharmaceuticals, Inc.*............ 46,238
875 Nexell Therapeutics, Inc.*.............. 13,016
-------------
2,625,191
-------------
MEDICAL SUPPLIES -- 3.6%
1,500 Aclara Biosciences, Inc.*............... 76,406
170,500 Acuson Corp.*........................... 2,301,490
1,000 Adac Laboratories*...................... 24,000
1,300 Advanced Energy Industries*............. 76,619
700 Aradigm Corp.*.......................... 12,250
1,000 Arrow International, Inc................ 33,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
500 Arthrocare Corp.*....................... $ 26,625
800 Aspect Medical Systems, Inc.*........... 21,600
400 ATS Medical, Inc.*...................... 5,850
800 Avigen, Inc.*........................... 35,100
800 Bacou USA, Inc.*........................ 16,000
2,700 Bausch & Lomb, Inc...................... 208,913
1,400 Beckman Coulter, Inc.................... 81,725
5,300 Biomet, Inc............................. 203,719
600 Biosite Diagnostics, Inc.*.............. 28,913
2,600 Burr-Brown Corp.*....................... 225,388
13,900 C.R. Bard, Inc.......................... 668,938
600 Cerus Corp.*............................ 30,713
900 ChromaVision Medical Systems, Inc.*..... 11,869
1,200 Coherent, Inc.*......................... 100,650
700 Conmed Corp.*........................... 18,113
1,700 Credence Systems Corp.*................. 93,819
900 Cyberonics*............................. 10,800
96,200 Cygnus, Inc.*........................... 1,370,850
1,400 Cymer, Inc.*............................ 66,850
700 Datascope Corp.......................... 25,200
2,500 Dentsply International, Inc............. 77,031
600 Diagnostic Products Corp................ 19,200
1,000 Dionex Corp.*........................... 26,750
21,100 Edwards Lifesciences Corp.*............. 390,350
72,400 Endocare, Inc.*......................... 1,466,100
1,400 Genrad, Inc.*........................... 12,600
1,200 Haemonetics Corp.*...................... 25,200
1,900 Henry Schein, Inc.*..................... 32,775
900 I-Stat Corp.*........................... 15,694
700 Igen International, Inc.*............... 11,594
300 II-VI, Inc.*............................ 14,513
4,700 Imatron, Inc.*.......................... 11,016
1,000 Inamed Corp.*........................... 36,625
</TABLE>
The accompanying notes are an integral part of the financial statements.
76
<PAGE> 77
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,400 Invacare Corp........................... $ 36,750
400 Keithley Instruments, Inc............... 34,850
3,200 Mallinckrodt, Inc....................... 139,000
4,800 Mead Corp............................... 121,200
800 Meade Instruments Corp.*................ 20,100
1,700 Mechanical Technology, Inc.*............ 25,500
1,100 Mentor Corp............................. 29,906
2,300 Millipore Corp.......................... 173,363
600 Mine Safety Appliances Co............... 14,400
1,400 Minimed, Inc.*.......................... 165,200
900 MKS Instruments, Inc.*.................. 35,213
900 Nanogen, Inc.*.......................... 38,194
500 Nanometrics, Inc.*...................... 20,594
3,000 Neoforma.Com, Inc.*..................... 21,094
1,300 Newport Corp............................ 139,588
700 Novoste Corp.*.......................... 42,700
1,100 Ocular Sciences, Inc.*.................. 12,925
19,900 ORATEC Interventions, Inc.*............. 664,163
1,600 Patterson Dental Co.*................... 81,600
600 Photon Dynamics, Inc.*.................. 44,813
48,800 PolyMedica Industries, Inc.*............ 2,110,600
1,000 Priority Healthcare Corp.*.............. 74,313
3,300 PSS World Medical, Inc.*................ 22,172
1,400 ResMed, Inc.*........................... 37,450
1,400 Respironics, Inc.*...................... 25,200
1,600 Robotic Vision Systems, Inc.*........... 28,800
1,400 Roper Industries, Inc................... 35,875
800 SangStat Medical Corp.*................. 23,100
600 Satcon Technology Corp.*................ 15,338
400 SonoSite, Inc.*......................... 11,525
14,000 St Jude Medical, Inc.*.................. 642,250
3,200 Steris Corp.*........................... 28,400
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,200 Summit Technology, Inc.*................ $ 41,525
2,200 Sunrise Technologies International*..... 22,000
900 Techne Corp.*........................... 117,000
1,400 Theragenics Corp.*...................... 11,988
13,060 Thermo Electron Corp.*.................. 275,076
1,000 Thoratec Laboratories Corp.*............ 16,188
900 Vasomedical, Inc.*...................... 4,247
1,000 Veeco Instruments, Inc.*................ 73,250
600 Ventana Medical Systems, Inc.*.......... 14,100
3,000 Visx, Inc.*............................. 84,188
600 Vivus, Inc.*............................ 4,163
800 Wesley Jessen Visioncare*............... 30,050
1,000 X-Rite, Inc............................. 9,125
12,800 Zoll Medical Corp.*..................... 627,200
-------------
14,161,624
-------------
METALS -- 2.6%
5,200 AK Steel Holding Corp................... 41,600
4,400 Allegheny Technologies, Inc............. 79,200
400 Alliant Techsystems, Inc.*.............. 26,975
1,800 Aptargroup, Inc......................... 48,600
347,500 Battle Mountain Gold Co.*............... 760,157
1,100 Belden, Inc............................. 28,188
6,100 Bethlehem Steel Corp.*.................. 21,731
138,700 Birmingham Steel Corp................... 537,463
800 Brush Engineered Materials, Inc......... 12,500
1,000 Carpenter Technology.................... 21,125
900 Century Aluminum Company................ 9,788
500 Cleveland-Cliffs, Inc................... 12,906
700 Commercial Metals Co.................... 19,250
</TABLE>
The accompanying notes are an integral part of the financial statements.
77
<PAGE> 78
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,400 Commscope, Inc.*........................ $ 98,400
4,400 Cooper Industries, Inc.................. 143,275
3,100 Crane Co................................ 75,369
500 Curtiss-Wright Corp..................... 18,594
6,600 Engelhard Corp.......................... 112,613
7,700 Freeport-McMoRan Copper & Gold, Inc.*... 71,225
1,600 General Cable Corp...................... 13,000
1,900 Harsco Corp............................. 48,450
267,900 Homestake Mining Co..................... 1,841,813
3,200 Hubbell, Inc............................ 81,600
117,600 Kaiser Aluminum Corp.*.................. 470,400
1,100 Lone Star Technologies*................. 50,875
242,600 LTV Corp................................ 697,476
2,100 Mascotech, Inc.......................... 22,706
600 Matthews International Corp............. 17,400
800 Maverick Tube Corp.*.................... 23,300
2,500 Meridian Gold, Inc.*.................... 15,313
1,800 Metals USA, Inc......................... 8,438
500 Mobile Mini, Inc.*...................... 11,031
1,600 Mueller Industries*..................... 44,800
900 NCI Building Systems, Inc.*............. 18,225
87,500 Newmont Mining Corp..................... 1,892,188
1,000 NS Group, Inc.*......................... 20,938
4,100 Nucor Corp.............................. 136,069
1,300 Optical Cable Corp.*.................... 39,325
123,500 Placer Dome, Inc........................ 1,180,969
1,100 Polaris Industries, Inc................. 35,200
1,200 Precision Castparts Corp................ 54,300
700 Quanex Corp............................. 10,413
1,300 Reliance Steel & Aluminum............... 24,863
1,200 Ryerson Tull, Inc....................... 12,450
700 Shaw Group, Inc. (The)*................. 32,988
300 Southern Peru Copper Corp............... 3,656
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,200 Steel Dynamics, Inc.*................... $ 19,938
1,800 Stillwater Mining Company*.............. 50,175
1,300 Sturm Ruger & Co., Inc.................. 11,538
900 Superior Telecom, Inc................... 8,944
53,500 Teck Corp. - Class B.................... 364,688
1,000 Texas Industries, Inc................... 28,875
2,200 Tower Automotive, Inc.*................. 27,500
1,700 Tredegar Corporation.................... 32,300
34,100 USX-US Steel Group, Inc................. 632,981
1,900 Weirton Steel Corp.*.................... 6,175
200 Wesco Financial Corp.................... 41,000
4,200 Worthington Industries, Inc............. 44,100
1,000 Xceed, Inc.*............................ 9,125
-------------
10,224,484
-------------
MINING -- 0.0%
2,500 Morrison Knudsen Corp.*................. 18,125
-------------
MISCELLANEOUS -- 0.0%
600 Advanced Marketing Services, Inc........ 11,063
2,900 Boyd Gaming Corp.*...................... 16,131
1,600 Calico Commerce, Inc.*.................. 26,000
1,100 Casella Waste Systems, Inc.*............ 11,825
2,300 Ha-Lo Industries, Inc.*................. 12,938
1,300 Handleman Co.*.......................... 16,250
1,000 Russ Berrie & Co., Inc.................. 19,250
750 SCP Pool Corp.*......................... 17,625
-------------
131,082
-------------
OFFICE EQUIPMENT -- 0.0%
7,300 IKON Office Solutions, Inc.............. 28,288
-------------
OIL & GAS -- 1.5%
2,700 AGL Resources, Inc...................... 43,031
</TABLE>
The accompanying notes are an integral part of the financial statements.
78
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American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
3,300 Ashland, Inc............................ $ 115,706
1,500 Atmos Energy Corp....................... 26,250
600 Atwood Oceanics*........................ 26,625
1,500 Belco Oil & Gas Corp.*.................. 12,750
1,000 Berry Petroleum......................... 17,000
1,700 Brown (Tom), Inc.*...................... 39,206
700 CAL Dive International, Inc.*........... 37,931
4,900 Chesapeake Energy Corp.*................ 37,975
2,000 CNA Surety Corporation.................. 23,875
2,300 Cross Timbers Oil Co.................... 50,888
400 CTG Resources, Inc...................... 14,675
2,100 Denbury Resources, Inc.*................ 10,894
800 Dril-Quip*.............................. 37,400
1,400 Energen Corp............................ 30,538
1,500 Enterprise Products Partners LP......... 33,750
5,800 EOG Resources, Inc...................... 194,300
1,500 Equitable Resources, Inc................ 72,375
200 Forcenergy, Inc*........................ 4,025
51,900 Friede Goldman Halter, Inc.*............ 463,856
500 Frontier Oil Corp.*..................... 4,000
1,100 Houston Exploration Company*............ 27,638
4,200 Key Energy Group*....................... 40,425
6,800 Kinder Morgan, Inc...................... 235,025
1,900 Louis Dreyfus Natural Gas*.............. 59,494
300 McMoRan Exploration Co.*................ 4,950
2,700 MDU Resources Group, Inc................ 58,388
2,300 Mitchell Energy & Development........... 73,888
1,800 National Fuel Gas Co.................... 87,750
800 New Jersey Resources.................... 30,450
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,000 Newfield Exploration Company*........... $ 78,250
1,200 Northwest Natural Gas Co................ 26,850
600 NUI Corp................................ 16,200
1,400 ONEOK, Inc.............................. 36,313
800 Patina Oil & Gas Corp................... 16,600
1,600 Patterson Energy, Inc.*................. 45,600
70,000 Pennzoil-Quaker State Co................ 844,375
1,500 Piedmont Natural Gas Co................. 39,844
800 Plains Resources, Inc.*................. 12,800
400 Prima Energy Corp.*..................... 21,400
300 Providence Energy Corp.................. 12,150
1,817 Pure Resources, Inc.*................... 32,479
3,900 Questar Corp............................ 75,563
1,300 RPC, Inc................................ 13,731
750 Seacor Smit, Inc.*...................... 29,016
800 Semco Energy, Inc....................... 10,400
500 South Jersey Industries................. 13,000
2,310 Southern Union Company*................. 36,527
1,400 Southwest Gas Corp...................... 24,500
300 Southwestern Energy Company............. 1,875
500 St. Mary Land & Exploration Co.......... 21,031
900 Stone Energy Corp.*..................... 53,775
4,200 Sunoco, Inc............................. 123,638
2,800 Superior Energy Services*............... 29,050
1,500 Tesoro Petroleum Corp.*................. 15,188
1,400 Transmontaigne, Inc.*................... 8,575
4,100 Ultramar Diamond Shamrock Corp.......... 101,731
100 Universal Compression Holdings*......... 3,350
36,000 Valero Energy Corp...................... 1,143,000
40,788 Varco International, Inc.*.............. 948,321
2,900 Vectren Corporation..................... 50,025
</TABLE>
The accompanying notes are an integral part of the financial statements.
79
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American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,900 Vintage Petroleum, Inc.................. $ 65,431
700 WD-40 Co................................ 14,525
900 Wynn's International, Inc............... 20,419
------------
5,900,590
------------
OIL & GAS DISTRIBUTION -- 1.0%
42,300 Basin Exploration, Inc.*................ 756,113
1,300 Eastern Enterprises..................... 81,900
900 Laclede Gas Co.......................... 17,325
72,600 MCN Energy Group, Inc................... 1,551,825
15,600 NATCO Group, Inc.*...................... 147,225
2,400 NICOR, Inc.............................. 78,300
1,800 Peoples Energy Corp..................... 58,275
13,700 Washington Gas Light Co................. 329,657
45,000 Western Gas Resources, Inc.............. 945,000
------------
3,965,620
------------
OIL & GAS EXPLORATION -- 6.8%
1,500 Barrett Resources Corp.*................ 45,656
83,900 Bellwether Exploration Co.*............. 697,419
32,500 Cabot Oil & Gas Corp. - Class A......... 688,594
3,700 Devon Energy Corp....................... 207,894
46,900 Evergreen Resources, Inc.*.............. 1,389,413
126,400 Forest Oil Corp.*....................... 2,014,500
122,400 Grant Prideco, Inc.*.................... 3,060,000
127,800 Grey Wolf, Inc.*........................ 639,000
900 HS Resources, Inc.*..................... 27,000
2,100 Murphy Oil Corp......................... 124,819
50,943 National-Oilwell, Inc.*................. 1,674,756
10,500 Noble Affiliates, Inc................... 391,125
80,700 Nuevo Energy Co.*....................... 1,523,213
274,660 Ocean Energy, Inc.*..................... 3,896,739
180,100 Oceaneering International, Inc.*........ 3,421,900
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
900 Pennaco Energy, Inc.*................... $ 14,738
219,100 Pioneer Natural Resources Co.*.......... 2,793,525
1,900 Pogo Producing Co....................... 42,038
226,065 Santa Fe Snyder Corp.*.................. 2,571,489
60,800 Spinnaker Exploration Co.*.............. 1,558,000
1,000 Swift Energy Co.*....................... 28,375
-------------
26,810,193
-------------
OIL & GAS FIELD SERVICES -- 4.0%
19,400 Coflexip SA ADR......................... 1,173,700
41,000 ENSCO International, Inc................ 1,468,313
4,300 Global Industries, Ltd.*................ 81,163
45,800 Global Marine, Inc.*.................... 1,290,988
2,600 Hanover Compressor Co.*................. 98,800
2,300 Helmerich & Payne, Inc.................. 85,963
14,500 Marine Drilling Companies, Inc.*........ 406,000
3,200 Newpark Resources, Inc.*................ 30,200
40,000 Osca, Inc.*............................. 675,000
3,600 Parker Drilling Co.*.................... 22,275
50,500 Petroleum Geo-Services ADR*............. 861,656
16,400 Precision Drilling Corp.*............... 633,450
26,500 Pride International, Inc.*.............. 655,875
48,100 Rowan Co., Inc.*........................ 1,461,038
27,700 Santa Fe International Corp............. 967,769
17,400 Tidewater, Inc.......................... 626,400
1,700 Unit Corp.*............................. 22,950
43,400 UTI Energy Corp.*....................... 1,741,425
74,500 Veritas DGC, Inc.*...................... 1,937,000
37,900 Weatherford International, Inc.*........ 1,508,894
-------------
15,748,859
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
80
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Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
PHARMACEUTICALS -- 3.2%
1,900 Abgenix, Inc.*.......................... $ 227,733
23,400 Albany Molecular Research, Inc.*........ 1,273,838
700 Alexion Pharmaceuticals, Inc.*.......... 50,050
800 Algos Pharmaceuticals Corp.*............ 12,200
1,300 Alkermes, Inc.*......................... 61,263
2,200 Alliance Pharmaceutical Corp.*.......... 24,750
1,100 Allos Therapeutics, Inc.*............... 10,725
1,600 Alpharma, Inc........................... 99,600
2,500 Amerisource Health Corp.*............... 77,500
2,900 Amylin Pharmaceuticals, Inc.*........... 44,044
2,900 Andrx Corp.*............................ 185,374
1,100 Antigenics, Inc.*....................... 18,288
700 Aphton Corp.*........................... 18,025
2,300 Avant Immunotherapeutics, Inc.*......... 24,294
900 Aviron*................................. 27,788
1,600 Axys Pharmaceuticals, Inc.*............. 9,500
11,100 Barr Laboratories, Inc.*................ 497,419
6,700 Bergen Brunswig Corp.................... 36,850
38,200 Bindley Western Industries.............. 1,009,913
800 Biocryst Pharmaceuticals, Inc.*......... 22,950
1,600 BioMarin Pharmaceuticals, Inc.*......... 27,200
1,100 Biomatrix, Inc.*........................ 24,888
1,200 Biopure Corp.*.......................... 22,575
1,000 Block Drug Co........................... 42,313
31,100 Carter-Wallace.......................... 625,888
1,600 Cell Genesys, Inc.*..................... 44,800
1,300 Cell Pathways, Inc.*.................... 30,550
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
17,800 Cell Therapeutics, Inc.*................ $ 545,125
700 Chirex, Inc.*........................... 14,000
1,400 Columbia Laboratories, Inc.*............ 8,050
1,300 Connetics Corporation*.................. 19,094
800 Coulter Pharmaceutical, Inc.*........... 16,400
1,800 Creative Biomolecules, Inc.*............ 25,200
1,300 Cubist Pharmaceuticals, Inc.*........... 64,025
700 Digene Corp.*........................... 28,263
2,100 Dura Pharmaceuticals, Inc.*............. 30,188
300 DUSA Pharmaceuticals, Inc.*............. 8,850
1,900 Enzon, Inc.*............................ 80,750
900 Geltex Pharmaceuticals, Inc.*........... 18,394
59,100 Genta, Inc.*............................ 384,150
2,700 Genzyme Corp.*.......................... 160,481
1,300 Genzyme Transgenics Corp.*.............. 35,263
1,000 Geron Corp.*............................ 32,000
2,100 Gilead Sciences, Inc.*.................. 149,363
1,100 Guilford Pharmaceuticals, Inc.*......... 16,569
600 Hyseq, Inc.*............................ 27,263
3,800 ICN Pharmaceuticals, Inc................ 105,688
5,200 ILEX Oncology, Inc.*.................... 183,300
1,500 ImClone Systems*........................ 114,656
1,200 Immune Response Corp.*.................. 13,050
2,200 Immunomedics, Inc.*..................... 53,900
1,000 Inhale Therapeutic Systems, Inc.*....... 101,469
1,000 Intermune Pharmaceuticals, Inc.*........ 41,313
</TABLE>
The accompanying notes are an integral part of the financial statements.
81
<PAGE> 82
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
3,000 Jones Pharma, Inc....................... $ 119,813
3,900 King Pharmaceuticals, Inc.*............. 171,113
900 Kos Pharmaceuticals, Inc.*.............. 14,456
200 KV Pharmaceutical Co.*.................. 5,438
600 KV Pharmaceutical Co.*.................. 15,900
1,300 Ligand Pharmaceuticals, Inc.*........... 17,144
500 Lynx Therapeutics, Inc.*................ 23,781
2,100 Mark IV Industries, Inc................. 43,838
800 Martek Biosciences Corp.*............... 15,000
400 Matrix Pharmaceuticals, Inc.*........... 5,225
1,800 Medarex, Inc.*.......................... 152,100
1,800 Medical Manager Corporation*............ 61,313
1,400 Medicis Pharmaceutical Corp. - Class
A*...................................... 79,800
700 MGI Pharma, Inc.*....................... 20,136
900 Miravant Medical Technologies*.......... 20,081
6,200 Mylan Labs, Inc......................... 113,150
600 Nabi*................................... 4,388
3,100 NBTY, Inc.*............................. 19,763
600 Neose Technologies, Inc.*............... 25,238
1,000 Noven Pharmaceuticals, Inc.*............ 30,063
900 NPS Pharmaceuticals, Inc.*.............. 24,075
1,500 NU Skin Enterprises, Inc.*.............. 8,625
1,400 Organogenesis, Inc.*.................... 16,013
1,000 OSI Pharmaceuticals, Inc.*.............. 28,813
800 PathoGenesis Corp.*..................... 20,800
3,400 Perrigo Company*........................ 21,463
1,200 Pharmaceutical Product Development,
Inc.*................................... 25,200
800 Pharmacyclics, Inc.*.................... 48,800
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
600 Professional Detailing, Inc.*........... $ 20,438
600 Progenics Pharmaceuticals, Inc.*........ 8,550
900 Protein Design Labs, Inc.*.............. 148,458
22,100 QLT PhotoTherapeutics, Inc.*............ 1,708,606
700 Ribozyme Pharmaceuticals, Inc.*......... 18,069
1,500 Schein Pharmaceutical, Inc.*............ 32,438
1,400 Sciclone Pharmaceuticals, Inc.*......... 18,113
3,800 SICOR, Inc.*............................ 30,400
4,700 Sigma-Aldrich Corp...................... 137,475
1,400 SuperGen, Inc.*......................... 50,750
100 Tanox, Inc.*............................ 4,731
1,700 Targeted Genetics Corp.*................ 25,288
4,200 Techniclone Corp.*...................... 16,275
1,800 Texas Biotech Corp.*.................... 34,200
1,200 Titan Pharmaceuticals, Inc.*............ 51,600
1,100 Transkaryotic Therapies, Inc.*.......... 40,425
2,200 Tularik, Inc.*.......................... 64,900
1,300 Twinlab Corporation*.................... 8,288
20,100 United Therapeutics Corp.*.............. 2,178,338
900 Vical, Inc.*............................ 17,325
700 West Pharmaceutical Services, Inc....... 15,138
2,100 XOMA Ltd.*.............................. 8,991
-------------
12,617,447
-------------
REAL ESTATE -- 1.0%
200 Alexander's, Inc.*...................... 14,650
3,900 AMB Property Corp....................... 88,969
3,200 Boston Properties, Inc.................. 123,600
</TABLE>
The accompanying notes are an integral part of the financial statements.
82
<PAGE> 83
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,500 Burnham Pacific Ppty, Inc............... $ 10,313
1,900 Cabot Industrial Trust.................. 37,406
5,200 Catellus Development Corp.*............. 78,000
1,000 Centerpoint Properties Corp............. 40,750
2,800 Developers Diversified Realty........... 41,825
2,598 Equity Office Properties................ 71,605
26,700 Felcor Lodging Trust, Inc. REIT......... 493,950
1,400 Forest City Enterprises, Inc............ 46,725
8,500 Healtheon/WebMD Corporation*............ 125,906
1,000 Insignia Financial Group, Inc.*......... 10,000
1,400 Jones Lang LaSalle, Inc.*............... 18,725
1,200 Kilroy Realty Corp...................... 31,125
71,800 LaSalle Hotel Properties................ 1,032,125
2,700 Lennar Corp............................. 54,675
1,100 LNR Property Corp....................... 21,450
2,200 MeriStar Hospitality Corp. REIT......... 46,200
1,100 Newhall Land & Farming Co............... 29,150
500 Parkway Properties, Inc................. 15,250
1,100 PS Business Parks, Inc.................. 26,400
1,300 Realty Income Corp...................... 30,631
3,300 Rouse Co................................ 81,675
2,600 Security Capital, Inc.*................. 44,200
1,200 Senior Housing Properties Trust......... 8,775
19,200 Storage USA, Inc. REIT.................. 566,400
1,600 Trammell Crow Co.*...................... 17,200
700 Trendwest Resorts, Inc.*................ 11,288
800 W.P. Carey & Co......................... 13,100
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
34,400 Washington Real Estate Investment
Trust................................... $ 614,900
900 Webb (Del E.) Corp.*.................... 13,781
-------------
3,860,749
-------------
RESTAURANTS -- 0.5%
1,300 Applebees International, Inc............ 39,406
3,100 Brinker International, Inc.*............ 90,675
2,000 Buffetts, Inc.*......................... 25,375
2,700 CBRL Group, Inc......................... 39,656
1,300 CEC Entertainment, Inc.*................ 33,313
1,350 Cheesecake Factory (The)*............... 37,125
1,400 Consolidated Products, Inc.*............ 12,600
6,000 Darden Restaurants, Inc................. 97,500
900 IHOP Corp.*............................. 15,075
39,200 Jack in the Box, Inc.*.................. 965,300
600 Krispy Kreme Doughnuts, Inc.*........... 44,100
300 Landry's Seafood Restaurants............ 2,550
1,600 Lone Star Steakhouse & Saloon........... 16,200
1,100 Luby's, Inc............................. 8,800
600 Morrison Management Specialist, Inc..... 16,913
300 O'Charleys, Inc.*....................... 4,088
3,600 Outback Steakhouse, Inc.*............... 105,300
500 P.F. Chang's China Bistro, Inc.*........ 15,969
1,400 Papa John's International, Inc.*........ 34,300
600 Rare Hospitality International, Inc.*... 16,950
3,000 Ruby Tuesday, Inc....................... 37,688
</TABLE>
The accompanying notes are an integral part of the financial statements.
83
<PAGE> 84
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,700 Ryan's Family Steak Houses, Inc.*....... $ 14,344
900 Sonic Corp.*............................ 26,438
3,900 Valhi, Inc.............................. 40,463
5,600 Wendy's International, Inc.............. 99,750
------------
1,839,878
------------
RETAILERS -- 2.4%
2,200 American Eagle Outfitters, Inc.*........ 30,800
1,400 Ames Dept Stores, Inc.*................. 10,850
6,500 AutoZone, Inc.*......................... 143,000
3,300 Barnes & Noble, Inc.*................... 73,425
3,400 BJ's Wholesale Club, Inc.*.............. 112,200
1,500 Blockbuster, Inc........................ 14,531
3,600 Borders Group, Inc.*.................... 56,025
2,100 Burlington Coat Factory Warehouse....... 22,706
6,100 BUT.COM*................................ 30,691
2,500 Casey's General Stores, Inc............. 25,938
1,200 Cash America International, Inc......... 8,850
500 Coldwater Creek, Inc.*.................. 15,063
5,500 Consolidated Stores Corp.*.............. 66,000
1,000 Cost Plus, Inc.*........................ 28,688
1,300 CSK Auto Corp.*......................... 9,831
5,000 Dillard's, Inc.......................... 61,250
4,800 Dollar Tree Stores, Inc.*............... 189,900
2,400 Drugstore.Com*.......................... 18,075
800 Duane Reade, Inc.*...................... 20,600
1,000 Electronics Boutique Holdings Corp.*.... 16,375
400 Envision Development Corporation*....... 8,800
5,700 eToys, Inc.*............................ 36,160
600 Factory 2-U Stores, Inc.*............... 22,688
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
8,100 Family Dollar Stores.................... $ 158,456
2,300 Gerald Stevens, Inc.*................... 3,306
1,000 Guitar Center, Inc.*.................... 10,500
3,300 Harcourt General, Inc................... 179,438
2,200 Hearst-Argyle Television, Inc.*......... 42,900
400 Hot Topic, Inc.*........................ 12,800
1,400 Intertan, Inc.*......................... 16,450
16,000 KMart Corp.*............................ 109,000
1,400 Lands' End, Inc.*....................... 46,725
1,900 Linens 'n Things, Inc.*................. 51,538
1,800 Longs Drug Stores Corp.................. 39,150
25,300 Michaels Stores*........................ 1,159,056
52,000 MSC Industrial Direct Co., Inc.*........ 1,088,750
1,600 Musicland Stores Corp.*................. 11,900
2,300 Neiman-Marcus Group, Inc.*.............. 67,994
1,600 99 Cents Only Stores*................... 63,800
6,300 Nordstrom, Inc.......................... 151,988
2,400 O'Reilly Automotive, Inc.*.............. 33,300
16,000 Office Depot, Inc.*..................... 100,000
5,400 OfficeMax, Inc.*........................ 27,000
850 PC Connection, Inc.*.................... 48,450
1,000 Petco Animal Supplies, Inc.*............ 19,625
5,200 Petsmart, Inc.*......................... 17,550
4,700 Pier 1 Imports, Inc..................... 45,825
13,400 Rite Aid Corp........................... 87,938
6,700 Saks, Inc.*............................. 70,350
800 School Specialty, Inc.*................. 14,850
7,800 Sherwin-Williams Co. (The).............. 165,263
1,400 Shopko Stores, Inc.*.................... 21,525
2,300 Stamps.com, Inc.*....................... 16,819
2,100 Stride Rite Corp........................ 12,863
12,000 Syncor International Corp.*............. 864,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
84
<PAGE> 85
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
1,600 Systemax, Inc.*......................... $ 6,200
2,400 Tech Data Corp.*........................ 104,550
2,000 The Men's Wearhouse, Inc.*.............. 44,625
11,200 Toys 'R' Us, Inc.*...................... 163,100
97,600 Trans World Entertainment Corp.*........ 1,183,400
1,800 Tuesday Morning Corp.*.................. 18,900
69,200 Tweeter Home Entertainment Group,
Inc.*................................... 2,101,950
500 Ultimate Electronics, Inc.*............. 13,398
1,500 Value City Department Stores, Inc.*..... 14,250
6,500 Venator Group Inc*...................... 66,625
800 Whitehall Jewellers, Inc.*.............. 14,900
2,600 Williams-Sonoma, Inc.*.................. 84,338
1,700 Zale Corp.*............................. 62,050
------------
9,659,841
------------
TELEPHONE SYSTEMS -- 2.7%
1,600 Adelphia Business Solutions, Inc.*...... 37,100
1,800 Adtran, Inc.*........................... 107,775
600 Airgate PCS, Inc.*...................... 31,538
2,900 Alamosa PCS Holdings, Inc.*............. 60,538
2,700 Allied Riser Communications Corp.*...... 38,138
1,000 American Telesource International,
Inc.*................................... 6,313
2,800 Arch Communications Group, Inc.*........ 18,200
2,500 Brightpoint, Inc.*...................... 21,641
3,500 Centennial Communications
Corporation*............................ 48,125
6,500 CenturyTel, Inc......................... 186,875
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
600 CFW Communications Co................... $ 22,500
1,400 Choice One Communications, Inc.*........ 57,138
1,000 Commonwealth Telephone Enterprises
Inc.*................................... 47,063
800 Corsair Communications, Inc.*........... 23,000
6,800 Covad Communications Group, Inc.*....... 109,650
2,200 Cypress Communications, Inc.*........... 15,950
3,000 Digital Island, Inc.*................... 145,875
29,400 Ditech Communications Corp.*............ 2,780,138
1,300 Dobson Communications Corp. - Class
A*...................................... 25,025
3,000 DSL.Net Inc.*........................... 30,938
1,000 e. spire Communications, Inc.*.......... 6,750
43,965 Focal Communications Corp.*............. 1,590,983
2,400 General Communication*.................. 12,300
5,008 Global Crossing Ltd.*................... 131,773
9,200 Global TeleSystems, Inc................. 110,975
200 Golden Telecom, Inc.*................... 5,950
1,700 Ibasis, Inc.*........................... 73,206
2,300 ICG Communications, Inc.*............... 50,744
29,040 Illuminet Holdings, Inc.*............... 1,477,410
43,900 Intermedia Communications, Inc.*........ 1,306,025
2,800 ITC Deltacom, Inc.*..................... 62,475
200 LCC International, Inc. - Class A*...... 5,463
800 Lightbridge, Inc.*...................... 19,100
8,200 Loral Space & Communications Ltd.*...... 56,888
2,800 Metrocall, Inc.*........................ 25,200
</TABLE>
The accompanying notes are an integral part of the financial statements.
85
<PAGE> 86
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,600 MGC Communications, Inc.*............... $ 95,900
2,300 Motient Corp.*.......................... 36,081
1,600 Net2000 Communications, Inc.*........... 26,200
800 Net2Phone, Inc.*........................ 28,550
2,200 Network Access Solutions Corp.*......... 21,038
2,600 Network Plus Corp.*..................... 36,888
3,088 NEXTLINK Communications, Inc.*.......... 117,163
1,700 Primus Telecommunications Group,
Inc.*................................... 42,288
3,700 RCN Corporation*........................ 93,888
500 Rural Cellular Corp.*................... 38,281
2,700 Star Telecommunications, Inc.*.......... 6,835
3,000 Talk.com, Inc.*......................... 17,438
4,100 TeleCorp PCS, Inc.*..................... 165,281
1,800 Teligent, Inc.*......................... 42,525
4,600 Tritel, Inc.*........................... 136,563
2,500 Triton PCS Holdings, Inc.*.............. 144,375
500 Universal Access, Inc.*................. 12,250
2,900 US Cellular Corp.*...................... 182,700
500 US LEC Corp.*........................... 8,500
2,600 Viatel, Inc.*........................... 74,263
1,700 WebLink Wireless, Inc.*................. 22,525
2,300 West Teleservices Corp.*................ 58,219
3,400 Western Wireless Corp. - Class A*....... 185,300
4,000 WinStar Communications, Inc.*........... 135,500
1,900 Wireless Facilities, Inc.*.............. 96,781
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------------------------------------------------------------------
<S> <C>
2,100 Worldpages.com, Inc.*................... $ 12,600
1,500 Z-Tel Technologies, Inc.*............... 18,000
-------------
10,604,694
-------------
TEXTILES, CLOTHING & FABRICS -- 0.7%
1,400 Albany International Corp.*............. 20,300
200 Brown Shoe Company, Inc................. 2,600
2,400 Burlington Industries, Inc.*............ 4,050
2,900 Collins & Aikman Corp.*................. 15,044
1,000 Columbia Sportswear Co.*................ 26,875
41,000 Delta & Pine Land Co.................... 1,027,563
1,000 Footstar, Inc.*......................... 33,250
1,000 Genesco, Inc.*.......................... 16,063
1,700 Guess?, Inc.*........................... 23,800
5,700 Jones Apparel Group, Inc.*.............. 133,950
1,200 Justin Industries....................... 26,250
1,300 Kellwood Co............................. 27,463
700 Kenneth Cole Productions, Inc.*......... 28,000
2,800 Liz Claiborne, Inc...................... 98,700
1,600 Nautica Enterprises, Inc.*.............. 17,100
39,800 Osh Kosh B Gosh - Class A............... 651,725
100 Phillips-Van Heusen..................... 950
1,700 Polo Ralph Lauren Corp.*................ 24,225
1,500 Polymer Group, Inc...................... 13,875
1,000 Quiksilver, Inc.*....................... 15,563
2,600 Reebok International, Ltd.*............. 41,438
2,200 Ruddick Corp............................ 25,988
1,500 Russell Corp............................ 30,000
6,300 Shaw Industries, Inc.................... 78,750
700 Skechers USA, Inc.*..................... 11,069
800 Springs Industries, Inc. - Class A...... 25,600
600 Steven Madden Ltd.*..................... 3,938
900 Timberland Company*..................... 63,731
</TABLE>
The accompanying notes are an integral part of the financial statements.
86
<PAGE> 87
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
2,800 Unifi, Inc.*............................ $ 34,650
5,500 V.F. Corp............................... 130,969
2,600 Warnaco Group........................... 20,150
2,500 WestPoint Stevens, Inc.................. 27,813
1,900 Wolverine World Wide.................... 18,763
------------
2,720,205
------------
TRANSPORTATION -- 1.8%
2,000 Alexander & Baldwin, Inc................ 44,125
1,000 American Classic Voyages Co.*........... 20,625
1,500 American Freightways Corp.*............. 21,750
300 Arctic Cat, Inc......................... 3,563
900 Arkansas Best Corp.*.................... 8,944
1,200 Arnold Industries, Inc.................. 14,475
4,300 Brunswick Corp.......................... 71,219
1,900 C.H. Robinson Worldwide, Inc............ 94,050
800 Circle International Group.............. 20,100
2,400 CNF Transportation, Inc................. 54,600
1,800 Expedia, Inc.*.......................... 26,663
2,400 Expeditors International Washington,
Inc..................................... 114,000
900 1st Source Corporation.................. 14,119
1,500 Fleetwood Enterprises, Inc.............. 21,375
1,700 Florida East Coast Inds................. 68,000
1,400 FMC Corp.*.............................. 81,200
1,000 Forward Air Corp.*...................... 40,000
1,700 Fritz Companies, Inc.*.................. 17,531
4,200 Galileo International, Inc.............. 87,675
2,300 Gatx Corp............................... 78,200
1,500 Hawaiian Electric Inds.................. 49,219
1,400 Heartland Express, Inc.*................ 23,363
1,700 Hunt (JB) Transport Services, Inc....... 26,244
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------
<S> <C>
41,800 Kirby Corp.*............................ $ 888,250
700 Knight Transportation, Inc.*............ 10,194
400 Landstar System, Inc.*.................. 23,825
600 MS Carriers, Inc.*...................... 10,575
106,500 Newport News Shipbuilding, Inc.......... 3,913,875
50,500 Offshore Logistics, Inc.*............... 725,938
1,600 Overseas Shipholding Group.............. 39,400
900 Roadway Express, Inc.................... 21,094
5,900 Royal Caribbean Cruises Ltd............. 109,150
2,900 Ryder System............................ 54,919
7,700 Sabre Holdings Corp..................... 219,450
3,000 Swift Transportation Co., Inc.*......... 42,000
1,300 Trico Marine Services, Inc.*............ 16,575
1,800 Trinity Industries, Inc................. 33,300
1,200 USFreightways Corporation............... 29,475
2,400 WABTEC.................................. 24,900
2,200 Werner Enterprises, Inc................. 25,438
1,000 Winnebago Industries.................... 13,063
2,400 Wisconsin Central Transport*............ 31,200
1,200 Yellow Corp.*........................... 17,700
------------
7,251,361
------------
WATER COMPANIES -- 0.1%
400 American States Water Company........... 11,900
4,500 American Water Works, Inc............... 112,500
5,500 Azurix Corp.*........................... 38,500
600 California Water Service Group.......... 14,550
400 E'town Corp............................. 26,575
</TABLE>
The accompanying notes are an integral part of the financial statements.
87
<PAGE> 88
Portfolio of Investments
American Odyssey Funds, Inc. / Emerging Opportunities Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
---------------------------------------------------------------------
<S> <C>
1,900 Philadelphia Suburban Corp.............. $ 38,950
100 SJW Corp................................ 11,888
1,800 United Water Resources, Inc............. 62,775
--------------
317,638
--------------
TOTAL COMMON STOCKS
(Cost $330,267,846)................................ 379,560,736
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
---------
<S> <C>
SHORT-TERM INVESTMENTS -- 9.4%
CASH EQUIVALENTS -- 9.2%
$ 2,394,734 Credit Agricole Indosuez
6.719%, 07/05/00 (a).................... 2,394,734
5,174,505 Fleet National Bank
7.125%, 10/31/00 (a).................... 5,174,505
7,184,203 Janus Money Market (a).................. 7,184,203
12,069,462 Merrimac Cash Fund Premium Class (a).... 12,069,462
9,578,937 Royal Bank of Canada
6.813%, 07/03/00 (a).................... 9,578,937
-----------------
36,401,841
-----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
U.S. TREASURY BILLS -- 0.2%
$ 550,000 U.S. Treasury Bill
5.690%, 09/14/00 (b).................... $ 543,480
-----------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $36,945,321)................................. 36,945,321
-----------------
TOTAL INVESTMENTS -- 105.4%
(Cost $367,213,167)................................ 416,506,057
Other assets in excess of
liabilities -- (5.4)%................................ (21,230,401)
-----------------
TOTAL NET ASSETS -- 100.0%........................... $ 395,275,656
=================
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
REIT -- Real Estate Investment Trust
* Non-income producing security.
{::} This is a 144a security
(a) Represents investments of security lending collateral (Note 2).
(b) Security has been pledged to cover collateral requirements for open
futures.
The accompanying notes are an integral part of the financial statements.
88
<PAGE> 89
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
COMMON STOCKS -- 95.3%
ADVERTISING -- 0.2%
2,100 Interpublic Group of Companies, Inc.
(The)................................... $ 90,300
10,200 Omnicom Group, Inc...................... 908,437
500 Young & Rubicam, Inc.................... 28,594
-------------
1,027,331
-------------
AEROSPACE & DEFENSE -- 1.2%
800 B.F. Goodrich Co........................ 27,250
6,400 Boeing Co............................... 267,600
1,400 General Dynamics Corp................... 73,150
5,500 Honeywell International, Inc............ 185,281
2,700 Lockheed Martin Corp.................... 66,994
500 Northrop Grumman Corp................... 33,125
2,300 Raytheon Co. - Class B.................. 44,275
85,400 Textron, Inc............................ 4,638,287
800 TRW, Inc................................ 34,700
-------------
5,370,662
-------------
AIRLINES -- 0.7%
1,000 AMR Corp.*.............................. 26,437
61,300 Delta Air Lines, Inc.................... 3,099,481
2,000 FedEx Corp.*............................ 76,000
3,400 Southwest Airlines Co................... 64,387
500 US Airways Group, Inc.*................. 19,500
-------------
3,285,805
-------------
APPAREL RETAILERS -- 0.4%
6,100 Gap, Inc. (The)......................... 190,625
28,500 Intimate Brands, Inc.................... 562,875
13,900 Kohl's Corp.*........................... 773,187
2,900 Limited, Inc. (The)..................... 62,712
-------------
1,589,399
-------------
AUTOMOTIVE -- 1.1%
1,100 Dana Corp............................... 23,306
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
3,900 Delphi Automotive Systems Corp.......... $ 56,794
8,500 Ford Motor Co........................... 365,500
76,067 General Motors Corp..................... 4,416,640
1,200 Genuine Parts Co........................ 24,000
1,100 Goodyear Tire & Rubber Co. (The)........ 22,000
2,100 Harley-Davidson, Inc.................... 80,850
600 ITT Industries, Inc..................... 18,225
400 Navistar International Corp.*........... 12,425
500 PACCAR, Inc............................. 19,844
1,300 Rockwell International Corp............. 40,950
2,187 Visteon CorpVisteon Corp.*.............. 26,514
------------
5,107,048
------------
BANKING -- 6.5%
37,500 American Express Co..................... 1,954,687
2,700 AmSouth Bancorp......................... 42,525
5,000 Associates First Capital Corp........... 111,562
108,887 Bank of America Corp.................... 4,682,141
5,200 Bank of New York Co., Inc. (The)........ 241,800
8,100 Bank One Corp........................... 215,156
2,400 BB&T Corp............................... 57,300
1,300 Capital One Financial Corp.............. 58,012
1,400 Charter One Financial, Inc.............. 32,200
85,334 Chase Manhattan Corp.................... 3,930,697
1,100 Comerica, Inc........................... 49,362
2,200 Fifth Third Bancorp..................... 139,150
7,000 First Union Corp........................ 173,687
6,700 Firstar Corp............................ 141,119
198,500 FleetBoston Financial Corp.............. 6,749,000
4,800 Freddie Mac............................. 194,400
1,100 Golden West Financial Corp.............. 44,894
3,300 Household International, Inc............ 137,156
1,600 Huntington Bancshares, Inc.............. 25,300
49,000 JP Morgan & Co., Inc.................... 5,396,125
</TABLE>
The accompanying notes are an integral part of the financial statements.
89
<PAGE> 90
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
3,100 KeyCorp................................. $ 54,637
5,500 MBNA Corp............................... 149,187
3,500 Mellon Financial Corp................... 127,531
4,200 National City Corp...................... 71,662
1,500 Northern Trust Corp..................... 97,594
945 Old Kent Financial Corp................. 25,279
76,482 PNC Bank Corp........................... 3,585,094
1,000 Providian Financial Corp................ 90,000
1,500 Regions Financial Corp.................. 29,812
1,100 SLM Holding Corp........................ 41,181
1,100 SouthTrust Corp......................... 24,887
1,100 State Street Corp....................... 116,669
1,200 Summit Bancorp.......................... 29,550
2,100 SunTrust Banks, Inc..................... 95,944
1,900 Synovus Financial Corp.................. 33,487
5,100 U.S. Bancorp............................ 98,175
1,000 Union Planters Corp..................... 27,937
1,400 Wachovia Corp........................... 75,950
3,900 Washington Mutual, Inc.................. 112,612
11,400 Wells Fargo Co.......................... 441,750
-------------
29,705,211
-------------
BEVERAGES, FOOD & TOBACCO -- 4.0%
300 Adolph Coors Co......................... 18,150
14,300 Anheuser-Busch Co., Inc................. 1,068,031
4,100 Archer-Daniels-Midland Co............... 40,231
1,900 Bestfoods............................... 131,575
500 Brown-Forman Corp....................... 26,875
2,900 Campbell Soup Co........................ 84,462
17,400 Coca-Cola Co. (The)..................... 999,412
2,900 Coca-Cola Enterprises, Inc.............. 47,306
3,400 Conagra, Inc............................ 64,812
76,800 General Mills, Inc...................... 2,937,600
123,900 H.J. Heinz Co........................... 5,420,625
700 Hercules, Inc........................... 9,844
900 Hershey Foods Corp...................... 43,650
2,800 Kellogg Co.............................. 83,300
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
2,200 Nabisco Group Holdings Corp............. $ 57,062
10,200 Pepsico, Inc............................ 453,262
121,700 Philip Morris Co., Inc.................. 3,232,656
40,100 Quaker Oats Co. (The)................... 3,012,512
2,100 Ralston-Ralston Purina Group............ 41,869
3,500 Safeway, Inc.*.......................... 157,937
6,200 Sara Lee Corp........................... 119,737
1,000 SUPERVALU, Inc.......................... 19,062
2,300 SYSCO Corp.............................. 96,887
4,100 Unilever NV............................. 176,300
1,200 UST, Inc................................ 17,625
800 William Wrigley Jr. Co.................. 64,150
-------------
18,424,932
-------------
BUILDING MATERIALS -- 0.6%
50,528 Home Depot, Inc. (The).................. 2,523,242
2,600 Lowe's Companies, Inc................... 106,762
400 Owens Corning........................... 3,700
700 Vulcan Materials Co..................... 29,881
-------------
2,663,585
-------------
CHEMICALS -- 0.9%
1,600 Air Products & Chemicals, Inc........... 49,300
800 Avery Dennison Corp..................... 53,700
500 Cooper Tire & Rubber Co................. 5,562
95,000 Dow Chemical Co. (The).................. 2,867,812
7,400 Du Pont (E.I.) De Nemours & Co.......... 323,750
500 Eastman Chemical Co..................... 23,875
400 Great Lakes Chemical Corp............... 12,600
700 International Flavors & Fragrances,
Inc..................................... 21,131
9,000 Pharmacia Corp.......................... 465,187
1,200 PPG Industries, Inc..................... 53,175
1,100 Praxair, Inc............................ 41,181
</TABLE>
The accompanying notes are an integral part of the financial statements.
90
<PAGE> 91
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
-----------------------------------------------------------------
<S> <C>
600 Sealed Air Corp.*....................... $ 31,425
400 Tupperware Corp......................... 8,800
900 Union Carbide Corp...................... 44,550
500 W.R. Grace & Co.*....................... 6,062
------------
4,008,110
------------
COMMERCIAL SERVICES -- 0.2%
1,300 Allied Waste Industries, Inc.*.......... 13,000
5,000 Cendant Corp.*.......................... 70,000
1,100 Dun & Bradstreet Corp. (The)............ 31,487
1,000 Equifax, Inc............................ 26,250
500 Fluor Corp.............................. 15,812
700 H&R Block, Inc.......................... 22,662
3,200 Halliburton Co.......................... 151,000
2,600 Paychex, Inc............................ 109,200
7,100 PerkinElmer, Inc........................ 469,487
800 Quintiles Transnational Corp.*.......... 11,300
900 R.R. Donnelley & Sons Co................ 20,306
4,200 Waste Management, Inc................... 79,800
------------
1,020,304
------------
COMMUNICATIONS -- 3.0%
13,100 ADC Telecommunications, Inc.*........... 1,098,762
600 Andrew Corp.*........................... 20,137
12,000 Comverse Technology, Inc.*.............. 1,116,000
12,400 EchoStar Communications Corp.*.......... 410,557
98,100 Lucent Technologies, Inc................ 5,812,425
24,640 McLeodUSA, Inc.*........................ 509,740
2,100 Network Appliance, Inc.*................ 169,050
26,300 Nextel Communications, Inc.*............ 1,609,231
20,800 Nortel Networks Corp.................... 1,419,600
5,200 Qualcomm, Inc.*......................... 312,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
1,100 Scientific-Atlanta, Inc................. $ 81,950
16,500 Tellabs, Inc.*.......................... 1,129,219
-------------
13,688,671
-------------
COMPUTER HARDWARE -- 0.1%
4,200 Foundry Networks, Inc.*................. 464,100
700 NCR Corp.*.............................. 27,256
300 Tektronix, Inc.......................... 22,200
-------------
513,556
-------------
COMPUTER SERVICES -- 0.3%
1,000 Ceridian Corp.*......................... 24,062
8,300 Juniper Networks, Inc.*................. 1,208,169
400 Sapient Corp.*.......................... 42,775
-------------
1,275,006
-------------
COMPUTER SOFTWARE -- 0.2%
200 Mercury Interactive Corp.*.............. 19,350
4,100 Micromuse, Inc.*........................ 678,486
2,200 Novell, Inc.*........................... 20,350
-------------
718,186
-------------
COMPUTER SOFTWARE & PROCESSING -- 6.3%
900 Adobe Systems, Inc...................... 117,000
42,711 America Online, Inc.*................... 2,253,005
400 Autodesk, Inc........................... 13,875
4,400 Automatic Data Processing, Inc.......... 235,675
18,300 BEA Systems, Inc.*...................... 904,706
1,700 BMC Software, Inc.*..................... 62,023
8,300 Brocade Communications Systems, Inc.*... 1,522,921
1,300 Citrix Systems, Inc.*................... 24,619
73,600 Computer Associates International,
Inc..................................... 3,767,400
1,200 Computer Sciences Corp.*................ 89,625
2,500 Compuware Corp.*........................ 25,937
</TABLE>
The accompanying notes are an integral part of the financial statements.
91
<PAGE> 92
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
500 Deluxe Corp............................. $ 11,781
3,200 Electronic Data Systems Corp............ 132,000
2,900 First Data Corp......................... 143,912
8,500 i2 Technologies, Inc.*.................. 886,258
2,100 IMS Health, Inc......................... 37,800
8,800 InfoSpace, Inc.*........................ 486,200
3,500 Inktomi Corp.*.......................... 413,875
79,330 Microsoft Corp.*........................ 6,346,400
46,740 Oracle Corp.*........................... 3,929,081
1,900 Parametric Technology Corp.*............ 20,900
1,900 PeopleSoft, Inc.*....................... 31,825
100 Shared Medical Systems Corp............. 7,294
7,850 Siebel Systems, Inc.*................... 1,283,966
23,500 Sun Microsystems, Inc.*................. 2,137,031
2,100 Unisys Corp.*........................... 30,581
6,200 VeriSign, Inc.*......................... 1,094,300
18,380 VERITAS Software Corp.*................. 2,077,227
3,800 Yahoo!, Inc.*........................... 470,725
-------------
28,557,942
-------------
COMPUTERS & INFORMATION -- 6.7%
11,900 Apple Computer, Inc.*................... 623,262
1,200 Cabletron Systems, Inc.*................ 30,300
127,800 Cisco Systems, Inc.*.................... 8,123,287
199,200 Compaq Computer......................... 5,092,050
18,100 Dell Computer Corp.*.................... 892,556
41,700 EMC Corp.*.............................. 3,208,294
2,200 Gateway, Inc.*.......................... 124,850
43,600 Hewlett Packard Co...................... 5,444,550
57,600 IBM Corp................................ 6,310,800
900 Lexmark International Group, Inc.*...... 60,525
2,800 Minnesota Mining & Manufacturing Co.
(3M).................................... 231,000
1,800 Pitney Bowes, Inc....................... 72,000
1,600 Seagate Technology, Inc.*............... 88,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
4,100 Solectron Corp.*........................ $ 171,687
2,400 3Com Corp.*............................. 138,300
-------------
30,611,461
-------------
CONTAINERS & PACKAGING -- 0.0%
200 Ball Corp............................... 6,437
900 Crown Cork & Seal Co., Inc.............. 13,500
-------------
19,937
-------------
COSMETICS & PERSONAL CARE -- 1.6%
400 Alberto-Culver Co....................... 12,225
1,700 Avon Products, Inc...................... 75,650
1,600 Clorox Co. (The)........................ 71,700
17,400 Colgate-Palmolive Co.................... 1,041,825
900 Ecolab, Inc............................. 35,156
9,400 Estee Lauder Companies, Inc. (The)...... 464,712
7,300 Gillette Co. (The)...................... 255,044
95,150 Procter & Gamble Co. (The).............. 5,447,337
-------------
7,403,649
-------------
ELECTRIC UTILITIES -- 1.4%
900 Ameren Corp............................. 30,375
2,200 American Electric Power Co.............. 65,175
1,100 Carolina Power & Light Co............... 35,131
1,100 Cinergy Corp............................ 27,981
800 CMS Energy Corp......................... 17,700
1,500 Consolidated Edison, Inc................ 44,437
1,000 Constellation Energy Group.............. 32,562
1,600 Dominion Resources, Inc................. 68,600
1,000 DTE Energy Co........................... 30,562
2,600 Duke Energy Corp........................ 146,575
2,400 Edison International.................... 49,200
1,700 Entergy Corp............................ 46,219
1,600 FirstEnergy Corp........................ 37,400
700 Florida Progress Corp................... 32,812
1,200 FPL Group, Inc.......................... 59,400
</TABLE>
The accompanying notes are an integral part of the financial statements.
92
<PAGE> 93
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
800 GPU, Inc................................ $ 21,650
800 New Century Energies, Inc............... 24,000
1,200 Niagara Mohawk Holdings, Inc.*.......... 16,725
1,100 Northern States Power Co................ 22,206
1,300 PECO Energy Co.......................... 52,406
108,600 PG&E Corp............................... 2,674,275
600 Pinnacle West Capital Corp.............. 20,325
1,000 PPL Corp................................ 21,937
1,500 Public Service Enterprise Group, Inc.... 51,937
2,000 Reliant Energy, Inc..................... 59,125
1,400 Sempra Energy........................... 23,800
4,600 Southern Co. (The)...................... 107,237
3,000 The AES Corporation*.................... 136,875
81,600 TXU Corp................................ 2,407,200
1,200 Unicom Corp............................. 46,425
-------------
6,410,252
-------------
ELECTRICAL EQUIPMENT -- 3.1%
1,300 American Power Conversion Corp.*........ 53,056
500 Eaton Corp.............................. 33,500
3,000 Emerson Electric Co..................... 181,125
261,400 General Electric Co..................... 13,854,200
300 National Service Industries, Inc........ 5,850
400 Thomas & Betts Corp..................... 7,650
-------------
14,135,381
-------------
ELECTRONICS -- 5.4%
700 Adaptec, Inc.*.......................... 15,925
1,100 Advanced Micro Devices, Inc.*........... 84,975
1,400 Altera Corp.*........................... 142,712
2,500 Analog Devices, Inc.*................... 190,000
4,200 Broadcom Corp.*......................... 919,537
1,500 Conexant Systems, Inc.*................. 72,937
35 Hughes Electronics Corp.*............... 3,071
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------
<S> <C>
91,922 Intel Corp.............................. $ 12,288,822
19,000 JDS Uniphase Corp.*..................... 2,277,625
1,300 KLA-Tencor Corporation*................. 76,131
2,200 Linear Technology Corp.................. 140,662
15,900 LSI Logic Corp.*........................ 860,588
2,000 Maxim Intergrated Products, Inc.*....... 135,875
3,900 Micron Technology, Inc.*................ 343,444
1,300 Molex, Inc.............................. 62,563
15,200 Motorola, Inc........................... 441,750
1,200 National Semiconductor Corp.*........... 68,100
900 Novellus System, Inc.*.................. 50,906
5,000 PMC-Sierra, Inc.*....................... 888,438
1,100 Sanmina Corp.*.......................... 94,050
3,300 SDL, Inc.*.............................. 941,119
11,300 Teradyne, Inc.*......................... 830,550
35,000 Texas Instruments, Inc.................. 2,404,063
4,600 Xerox Corp.............................. 95,450
12,600 Xilinx, Inc.*........................... 1,040,288
-------------
24,469,581
-------------
ENTERTAINMENT & LEISURE -- 0.9%
4,200 Carnival Corp. - Class A................ 81,900
2,200 Eastman Kodak Co........................ 130,900
900 Harrah's Entertainment, Inc.*........... 18,844
1,200 Hasbro, Inc............................. 18,075
2,900 Mattel, Inc............................. 38,244
300 Polaroid Corp........................... 5,419
3,000 Seagrams Co., Ltd. (The)................ 174,000
95,100 Walt Disney Co. (The)................... 3,691,069
-------------
4,158,451
-------------
FINANCIAL SERVICES -- 2.7%
800 Bear Stearns Companies., Inc. (The)..... 33,300
9,600 Charles Schwab Corp. (The).............. 322,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
93
<PAGE> 94
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
23,700 Citigroup, Inc. (a)..................... $ 1,427,925
800 Countrywide Credit Industries, Inc...... 24,250
7,100 Federal National Mortgage Association... 370,531
1,700 Franklin Resources, Inc................. 51,638
900 Lehman Brothers Holding, Inc............ 85,106
13,900 Merrill Lynch & Co...................... 1,598,500
102,348 Morgan Stanley, Dean Witter and Co...... 8,520,471
1,000 Paine Webber Group, Inc................. 45,500
800 T. Rowe Price Associates, Inc........... 34,000
-----------------
12,514,021
-----------------
FOOD RETAILERS -- 0.1%
2,900 Albertsons, Inc......................... 96,425
300 Great Atlantic & Pacific Tea Co.
(The)................................... 4,988
5,700 Kroger Co. (The)*....................... 125,756
1,300 Starbucks Corp.*........................ 49,644
1,000 Winn-Dixie Stores, Inc.................. 14,313
-----------------
291,126
-----------------
FOREST PRODUCTS & PAPER -- 0.1%
400 Bemis Co., Inc.......................... 13,450
400 Boise Cascade Corp...................... 10,350
1,500 Fort James Corp......................... 34,688
1,200 Georgia-Pacific Group................... 31,500
3,395 International Paper Co.................. 101,217
3,900 Kimberly-Clark Corp..................... 223,763
700 Louisiana-Pacific Corp.................. 7,613
1,200 Pactiv Corp.*........................... 9,450
200 Potlatch Corp........................... 6,625
400 Temple-Inland, Inc...................... 16,800
700 Westvaco Corp........................... 17,369
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
1,600 Weyerhaeuser Co......................... $ 68,800
800 Willamette Industries, Inc.............. 21,800
-----------------
563,425
-----------------
HEALTH CARE PROVIDERS -- 1.2%
177,700 HCA - The Healthcare Corporation........ 5,397,638
2,600 HEALTHSOUTH Corp.*...................... 18,688
700 Manor Care, Inc.*....................... 4,900
2,100 Tenet Healthcare Corp................... 56,700
-----------------
5,477,926
-----------------
HEAVY CONSTRUCTION -- 0.0%
400 Centex Corp............................. 9,400
300 Kaufman & Broad Home Corp............... 5,944
400 McDermott International, Inc............ 3,525
-----------------
18,869
-----------------
HEAVY MACHINERY -- 1.5%
17,900 Applied Materials, Inc.*................ 1,622,188
2,200 Baker Hughes, Inc....................... 70,400
600 Black & Decker Corp. (The).............. 23,588
200 Briggs & Stratton Corp.................. 6,850
2,400 Caterpillar, Inc........................ 81,300
300 Cummins Engine Co., Inc................. 8,175
113,800 Deere & Co.............................. 4,210,600
1,400 Dover Corp.............................. 56,788
1,100 Ingersoll-Rand Co....................... 44,275
16,600 Lam Research Corp.*..................... 622,500
800 Pall Corp............................... 14,800
800 Parker-Hannifin Corp.................... 27,400
600 Stanley Works (The)..................... 14,250
400 Timken Co. (The)........................ 7,450
3,300 United Technologies Corp................ 194,288
600 W.W. Grainger, Inc...................... 18,488
-----------------
7,023,340
-----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
94
<PAGE> 95
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
HOME CONSTRUCTION,
FURNISHINGS & APPLIANCES -- 0.0%
600 Johnson Controls, Inc................... $ 30,788
1,300 Leggett & Platt, Inc.................... 21,450
600 Maytag Corp............................. 22,125
1,900 Newell Rubbermaid, Inc.................. 48,925
300 Pulte Corp.............................. 6,488
500 Whirlpool Corp.......................... 23,313
-----------------
153,089
-----------------
HOUSEHOLD PRODUCTS -- 0.5%
6,600 Corning, Inc............................ 1,781,175
1,100 Fortune Brands, Inc..................... 25,369
2,100 Illinois Tool Works, Inc................ 119,700
1,000 Owens-Illinois, Inc.*................... 11,688
1,500 Rohm & Haas Co.......................... 51,750
400 Snap-On, Inc............................ 10,650
-----------------
2,000,332
-----------------
INDUSTRIAL - DIVERSIFIED -- 0.5%
200 Armstrong Holdings, Inc................. 3,063
1,100 Convergys Corp.*........................ 57,063
600 Phelps Dodge Corp....................... 22,313
46,525 Tyco International, Ltd................. 2,204,122
-----------------
2,286,561
-----------------
INSURANCE -- 8.0%
1,000 Aetna, Inc.............................. 64,188
1,800 AFLAC, Inc.............................. 82,688
5,100 Allstate Corp........................... 113,475
67,500 American General Corp................... 4,117,500
77,800 American International Group, Inc....... 9,141,500
1,800 AON Corp................................ 55,913
46,500 Chubb Corp.............................. 2,859,750
61,000 Cigna Corp.............................. 5,703,500
1,100 Cincinnati Financial Corp............... 34,581
309,900 Conseco, Inc............................ 3,021,525
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
102,900 Hartford Financial Services Group, Inc.
(The)................................... $ 5,755,969
1,100 Humana, Inc.*........................... 5,363
700 Jefferson-Pilot Corp.................... 39,506
1,300 Lincoln National Corp................... 46,963
700 Loews Corp.............................. 42,000
1,900 Marsh & McLennan Companies, Inc......... 198,431
700 MBIA, Inc............................... 33,731
700 MGIC Investment Corp.................... 31,850
500 Progressive Corp. (The)................. 37,000
900 SAFECO Corp............................. 17,888
147,300 St. Paul Companies, Inc. (The).......... 5,026,613
900 Torchmark Corp.......................... 22,219
1,200 UnitedHealth Group, Inc................. 102,900
1,600 UnumProvident Corp...................... 32,100
400 Wellpoint Health Networks, Inc.*........ 28,975
-----------------
36,616,128
-----------------
LODGING -- 0.0%
2,500 Hilton Hotels Corp...................... 23,438
1,700 Marriott International, Inc............. 61,306
-----------------
84,744
-----------------
MEDIA - BROADCASTING & PUBLISHING -- 6.1%
400 American Greetings Corp................. 7,600
273,638 AT&T Liberty Media Group*............... 6,635,722
19,418 Clear Channel Communications, Inc.*..... 1,456,350
6,300 Comcast Corp.*.......................... 255,150
600 Dow Jones & Co., Inc.................... 43,950
1,900 Gannett Co., Inc........................ 113,644
500 Knight-Ridder, Inc...................... 26,594
1,300 McGraw-Hill Companies, Inc. (The)....... 70,200
</TABLE>
The accompanying notes are an integral part of the financial statements.
95
<PAGE> 96
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
45,500 MediaOne Group, Inc.*................... $ 3,867,500
300 Meredith Corp........................... 10,125
20,100 New York Times Co. (The) - Class A...... 793,950
34,500 Time Warner, Inc........................ 2,622,000
109,100 Tribune Co.............................. 3,818,500
7,800 Univision Communications, Inc.*......... 807,300
107,900 Viacom, Inc. - Class B*................. 7,357,431
-----------------
27,886,016
-----------------
MEDICAL SUPPLIES -- 4.2%
4,766 Agilent Technologies, Inc.*............. 351,493
18,200 Allergan, Inc........................... 1,355,900
400 Bausch & Lomb, Inc...................... 30,950
85,100 Baxter International, Inc............... 5,983,594
1,700 Becton, Dickinson & Co.................. 48,769
800 Biomet, Inc............................. 30,750
2,800 Boston Scientific Corp.*................ 61,425
300 C.R. Bard, Inc.......................... 14,438
1,000 Danaher Corp............................ 49,438
2,100 Guidant Corp.*.......................... 103,950
90,200 Johnson & Johnson....................... 9,189,125
500 Mallinckrodt, Inc....................... 21,719
700 Mead Corp............................... 17,675
8,400 Medtronic, Inc.......................... 418,425
300 Millipore Corp.......................... 22,613
20,400 PE Corp. - PE Biosystems Group.......... 1,343,850
600 St Jude Medical, Inc.*.................. 27,525
1,100 Thermo Electron Corp.*.................. 23,169
-----------------
19,094,808
-----------------
METALS -- 0.8%
1,500 Alcan Aluminium, Ltd.................... 46,500
115,300 Alcoa, Inc.............................. 3,343,700
600 Allegheny Technologies, Inc............. 10,800
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
2,700 Barrick Gold Corp....................... $ 49,106
900 Bethlehem Steel Corp.*.................. 3,206
600 Cooper Industries, Inc.................. 19,538
400 Crane Co................................ 9,725
900 Engelhard Corp.......................... 15,356
1,100 Freeport-McMoRan Copper & Gold, Inc.*... 10,175
1,800 Homestake Mining Co..................... 12,375
1,200 Inco Ltd.*.............................. 18,450
3,100 Masco Corp.............................. 55,994
1,100 Newmont Mining Corp..................... 23,788
600 Nucor Corp.............................. 19,913
2,200 Placer Dome, Inc........................ 21,038
600 USX-US Steel Group, Inc................. 11,138
600 Worthington Industries, Inc............. 6,300
-----------------
3,677,102
-----------------
OIL & GAS -- 8.0%
103,100 Amerada Hess Corp....................... 6,366,425
900 Anadarko Petroleum Corp................. 44,381
12,000 Apache Corp............................. 705,750
500 Ashland, Inc............................ 17,531
1,500 Burlington Resources, Inc............... 57,375
4,600 Chevron Corp............................ 390,138
1,500 Coastal Corp. (The)..................... 91,313
600 Columbia Energy Group................... 39,375
4,300 Conoco, Inc............................. 105,619
1,600 El Paso Energy Corp..................... 81,500
71,100 Enron Corp.............................. 4,585,950
141,665 Exxon Mobil Corp........................ 11,120,703
2,500 Occidental Petroleum Corp............... 52,656
200 ONEOK, Inc.............................. 5,188
1,800 Phillips Petroleum Co................... 91,238
15,100 Royal Dutch Petroleum Co................ 929,594
4,000 Schlumberger, Ltd....................... 298,500
600 Sunoco, Inc............................. 17,663
104,372 Texaco, Inc............................. 5,557,809
</TABLE>
The accompanying notes are an integral part of the financial statements.
96
<PAGE> 97
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
1,000 Tosco Corp.............................. $ 28,313
1,700 Union Pacific Resources Group, Inc...... 37,400
176,500 Unocal Corp............................. 5,846,563
2,100 USX-Marathon Group...................... 52,631
3,000 Williams Companies, Inc. (The).......... 125,063
-----------------
36,648,678
-----------------
OIL & GAS DISTRIBUTION -- 0.0%
200 Eastern Enterprises..................... 12,600
300 NICOR, Inc.............................. 9,788
200 Peoples Energy Corp..................... 6,475
-----------------
28,863
-----------------
OIL & GAS EXPLORATION -- 0.0%
700 Kerr-McGee Corp......................... 41,256
-----------------
OIL & GAS FIELD SERVICES -- 0.1%
7,900 BJ Services Co.*........................ 493,750
600 Rowan Co., Inc.*........................ 18,225
1,400 Transocean Sedco Forex, Inc............. 74,813
-----------------
586,788
-----------------
PHARMACEUTICALS -- 5.6%
10,700 Abbott Laboratories..................... 476,819
700 ALZA Corp.*............................. 41,388
23,200 American Home Products Corp............. 1,363,000
22,640 Amgen, Inc.*............................ 1,590,460
7,300 Andrx Corp.*............................ 466,630
1,000 Biogen, Inc.*........................... 64,500
113,500 Bristol Myers Squibb Co................. 6,611,375
1,900 Cardinal Health, Inc.................... 140,600
8,000 Eli Lilly & Co.......................... 799,000
6,000 Forest Laboratories, Inc.*.............. 606,000
7,900 Genentech, Inc.*........................ 1,358,800
1,900 McKesson HBOC, Inc...................... 39,781
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
14,300 MedImmune, Inc.*........................ $ 1,058,200
43,200 Merck & Co., Inc........................ 3,310,200
127,378 Pfizer, Inc............................. 6,114,132
29,500 Schering Plough Corp.................... 1,489,750
700 Sigma-Aldrich Corp...................... 20,475
700 Watson Pharmaceutical, Inc.*............ 37,625
-----------------
25,588,735
-----------------
RESTAURANTS -- 0.1%
800 Darden Restaurants, Inc................. 13,000
9,500 McDonald's Corp......................... 312,906
1,000 Tricon Global Restaurants, Inc.*........ 28,250
800 Wendy's International, Inc.............. 14,250
-----------------
368,406
-----------------
RETAILERS -- 2.1%
900 AutoZone, Inc.*......................... 19,800
1,000 Bed Bath & Beyond, Inc.*................ 36,250
1,400 Best Buy Co., Inc.*..................... 88,550
1,400 Circuit City Stores, Inc................ 46,463
800 Consolidated Stores Corp.*.............. 9,600
3,200 Costco Wholesale Corp.*................. 105,600
2,700 CVS Corp................................ 108,000
600 Dillard's, Inc.......................... 7,350
2,250 Dollar General Corp..................... 43,875
94,250 Federated Department Stores, Inc.*...... 3,180,938
500 Harcourt General, Inc................... 27,188
1,800 J.C. Penney Co., Inc.................... 33,188
3,300 KMart Corp.*............................ 22,481
200 Longs Drug Stores Corp.................. 4,350
2,300 May Department Stores Co. (The)......... 55,200
900 Nordstrom, Inc.......................... 21,713
2,100 Office Depot, Inc.*..................... 13,125
18,400 RadioShack Corporation.................. 871,700
</TABLE>
The accompanying notes are an integral part of the financial statements.
97
<PAGE> 98
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
1,800 Rite Aid Corp........................... $ 11,813
2,600 Sears Roebuck & Co...................... 84,825
1,100 Sherwin-Williams Co. (The).............. 23,306
3,300 Staples, Inc.*.......................... 50,738
15,900 Target Corp............................. 922,200
500 Tiffany & Co............................ 33,750
2,100 TJX Companies, Inc. (The)............... 39,375
1,600 Toys 'R' Us, Inc.*...................... 23,300
61,326 Wal-Mart Stores, Inc.................... 3,533,911
7,200 Walgreen Co............................. 231,750
-----------------
9,650,339
-----------------
TELEPHONE SYSTEMS -- 8.1%
2,200 ALLTEL Corp............................. 136,263
144,200 AT&T Corp............................... 4,560,325
113,700 AT&T Wireless Group*.................... 3,169,388
10,900 Bell Atlantic Corp...................... 553,856
74,600 BellSouth Corp.......................... 3,179,825
1,000 CenturyTel, Inc......................... 28,750
6,100 Global Crossing Ltd.*................... 160,506
6,800 GTE Corp................................ 423,300
5,700 Level 3 Communications, Inc.*........... 501,600
18,400 Metromedia Fiber Network, Inc.*......... 730,250
7,900 Redback Networks, Inc.*................. 1,406,200
142,100 SBC Communications, Inc................. 6,145,825
75,783 Sprint Corp. (FON Group)................ 3,864,933
29,100 Sprint Corp. (PCS Group)*............... 1,731,450
66,700 U.S. WEST, Inc.......................... 5,719,525
4,900 Voicestream Wireless Corp.*............. 569,855
92,600 WorldCom, Inc.*......................... 4,248,025
-----------------
37,129,876
-----------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------------------------------------------------------------------
<S> <C>
TEXTILES, CLOTHING &
FABRICS -- 0.0%
400 Liz Claiborne, Inc...................... $ 14,100
1,900 NIKE, Inc............................... 75,644
400 Reebok International, Ltd.*............. 6,375
200 Russell Corp............................ 4,000
100 Springs Industries, Inc. - Class A...... 3,200
800 V.F. Corp............................... 19,050
-----------------
122,369
-----------------
TRANSPORTATION -- 0.8%
600 Brunswick Corp.......................... 9,938
3,100 Burlington Northern Santa Fe Corp....... 71,106
1,500 CSX Corp................................ 31,781
200 FMC Corp.*.............................. 11,600
800 Kansas City Southern Industries, Inc.... 70,950
2,600 Norfolk Southern Corp................... 38,675
400 Ryder System............................ 7,575
900 Sabre Holdings Corp..................... 25,650
84,500 Union Pacific Corp...................... 3,142,344
6,700 United Parcel Service, Inc.............. 395,300
-----------------
3,804,919
-----------------
TOTAL COMMON STOCKS
(Cost $413,494,718).............................. 435,822,176
-----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
98
<PAGE> 99
Portfolio of Investments
American Odyssey Funds, Inc. / Core Equity Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
----------------------------------------------------------------------
<S> <C>
SHORT-TERM INVESTMENTS -- 2.0%
CASH EQUIVALENTS -- 2.0%
$ 601,432 Credit Agricole Indosuez
6.719%, 07/05/00 (b).................... $ 601,432
1,299,562 Fleet National Bank
7.125%, 10/31/00 (b).................... 1,299,562
1,804,295 Janus Money Market (b).................. 1,804,295
3,031,215 Merrimac Cash Fund Premium Class (b).... 3,031,215
2,405,728 Royal Bank of Canada
6.813%, 07/03/00 (b).................... 2,405,728
-----------------
9,142,232
-----------------
U.S. TREASURY BILLS -- 0.0%
100,000 U.S. Treasury Bill
5.700%, 09/14/00 (c).................... 98,812
100,000 U.S. Treasury Bill
5.730%, 09/14/00 (c).................... 98,806
-----------------
197,618
-----------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,339,850)................................ 9,339,850
-----------------
TOTAL INVESTMENTS -- 97.3%
(Cost $422,834,568).............................. 445,162,026
-----------------
Other assets in excess of liabilities -- 2.7%...... 12,396,872
-----------------
TOTAL NET ASSETS -- 100.0%......................... $ 457,558,898
=================
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
* Non-income producing security.
(a) An affiliate of American Odyssey Funds Management, Inc.
(b) Represents investments of security lending collateral (Note 2).
(c) Security has been pledged to cover collateral requirements for open
futures.
The accompanying notes are an integral part of the financial statements.
99
<PAGE> 100
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
FOREIGN OBLIGATIONS -- 12.1%
CORPORATE DEBT -- 4.6%
$ 2,000,000 Abbey National Capital Trust I,
Variable Rate
8.963%, 12/29/49........................ $ 1,992,684
1,231,000 Global Crossing Holdings Ltd.,
Yankee-Dollar
9.500%, 11/15/09........................ 1,194,070
1,350,000 HSBC Capital Funding LP, 144A, Variable
Rate
10.176%, 12/31/49....................... 1,449,159
2,150,000 HypoVereinsbank 144A
8.741%, 06/30/31........................ 1,980,881
550,000 IBJ Preferred Cap LLC, 144A, Variable
Rate, FLIRB
8.790%, 12/29/49........................ 499,053
1,000,000 KBC Bank Fund Trust III
9.860%, 11/29/49........................ 1,023,500
600,000 Pemex Finance Ltd.
9.030%, 02/15/11........................ 619,443
1,000,000 Royal Bank of Scotland Plc
9.118%, 03/31/49........................ 1,031,970
142,000 RSL Communications Plc
12.875%, 03/01/10....................... 107,210
2,300,000 Sumitomo Bank Treasury, 144A, Variable
Rate
9.400%, 12/29/49........................ 2,211,473
57,000 360 Networks, Inc.
13.000%, 05/01/08....................... 57,285
100,000 Worldwide Fiber, Inc.
12.000%, 08/01/09....................... 95,000
-----------------
12,261,728
-----------------
GOVERNMENT OBLIGATIONS -- 7.5%
1,230,000 Manitoba (Province) - Series EE,
Yankee-Dollar
9.500%, 09/15/18........................ 1,465,988
601,398 Panama - PDI
4.000%, 07/17/16........................ 499,042
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 2,000,000 Quebec Province, Yankee-Dollar
5.670%, 02/27/26........................ $ 1,980,080
6,000 Republic of Argentina
11.750%, 06/15/15....................... 5,445
2,720,000 Republic of Argentina Global Bond
11.375%, 03/15/10....................... 2,478,600
27,200 Republic of Argentina Series BB,
Variable Rate
7.375%, 03/31/05........................ 24,650
2,204,224 Republic of Brazil - C Bond, Variable
Rate
8.000%, 04/15/14........................ 1,634,778
420,000 Republic of Colombia Global Bond
11.750%, 02/25/20....................... 345,450
780,000 Republic of Colombia Global Bond Series
NOV
9.750%, 04/23/09........................ 686,400
650,000 Republic of Philippines Global Bond
9.500%, 10/21/24........................ 606,125
1,010,000 Republic of Philippines Global Bond
9.875%, 01/15/19........................ 820,625
6,210,000 United Mexican States Global Bond
11.500%, 05/15/26....................... 7,483,050
1,830,000 United Mexican States Global Bond Series
XW
10.375%, 02/17/09....................... 1,944,375
-----------------
19,974,608
-----------------
TOTAL FOREIGN OBLIGATIONS
(Cost $32,633,144)................................. 32,236,336
-----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
100
<PAGE> 101
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
U.S. CORPORATE OBLIGATIONS -- 33.7%
ASSET BACKED AND MORTGAGE BACKED -- 0.4%
$ 1,020,000 Nomura Assets Securities Corp., REMIC
7.120%, 04/13/36........................ $ 1,004,601
-----------------
CORPORATE BONDS & NOTES -- 32.8%
144,000 AES Corp. (The)
9.500%, 06/01/09........................ 141,840
183,000 AirGate PCS, Inc., Step Up
13.500%, 10/01/09....................... 105,682
239,000 Allied Waste North America
10.000%, 08/01/09....................... 200,760
2,000,000 Associates Corporation of North America
8.150%, 08/01/09........................ 1,990,900
2,400,000 Bellsouth Telecommunication Corp.
7.000%, 10/01/25........................ 2,156,424
4,726,588 Blackrock Capital Financial
7.220%, 11/25/28........................ 4,659,494
170,000 Blount, Inc. 144A
13.000%, 08/01/09....................... 174,250
390,000 Burlington North Santa Fe
6.375%, 12/15/05........................ 366,350
66,000 Calpine Corp.
7.750%, 04/15/09........................ 62,535
53,000 Century Communications
8.875%, 01/15/07........................ 48,362
195,000 Charter Communications
8.625%, 04/01/09........................ 172,331
1,000,000 CIT Group Holdings
8.375%, 11/01/01........................ 1,012,090
89,000 Classic Cable, Inc.
10.500%, 03/01/10....................... 82,547
114,000 CMS Energy Corp.
7.500%, 01/15/09........................ 102,131
1,350,000 Commonwealth Edison Co.
8.375%, 02/15/23........................ 1,326,064
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 500,000 Commonwealth Edison Co.
8.625%, 02/01/22........................ $ 503,515
760,000 CSX Corp.
7.450%, 05/01/07........................ 730,368
2,380,000 Dow Chemical Co. (The)
7.375%, 11/01/29........................ 2,320,867
760,000 Dresdner Funding Trust I 144A
8.151%, 06/30/31........................ 663,776
178,000 Echostar DBS Corp.
9.375%, 02/01/09........................ 171,770
18,500,000 Financing Corp. Series D-P
0.000%, 08/03/18 (a).................... 5,420,500
87,000 Focal Communications Corp., 144A
11.875%, 01/15/10....................... 87,870
2,500,000 Ford Motor Co.
7.700%, 05/15/69........................ 2,323,075
2,000,000 Ford Motor Credit Corp.
5.750%, 01/25/01........................ 1,982,440
350,000 General Motors Acceptance Corp.
9.625%, 12/15/01........................ 359,912
4,700,000 General Motors Acceptance Corp. - Units
0.000%, 06/15/15 (a).................... 1,410,000
329,097 GG1B Funding Corp.
7.430%, 01/15/11........................ 312,919
2,400,000 GTE Corp.
6.940%, 04/15/28........................ 2,124,336
1,090,000 Hercules, Inc., 144A
9.225%, 12/29/00........................ 1,089,499
23,000 HMH Properties, Inc., Series C
8.450%, 12/01/08........................ 21,419
122,000 Horseshoe Gaming LLC, 144A
8.625%, 05/15/09........................ 115,595
</TABLE>
The accompanying notes are an integral part of the financial statements.
101
<PAGE> 102
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 615,000 Huntsman ICI Chemicals 144A
0.000%, 12/31/09 (a).................... $ 206,025
2,000,000 International Paper Co.
7.000%, 06/01/01........................ 1,986,340
2,000,000 JP Morgan Co., Variable Rate
6.902%, 02/15/12........................ 1,755,160
1,500,000 JPM Capital Trust I
7.540%, 01/15/27........................ 1,286,535
360,000 Lear Corp.
7.960%, 05/15/05........................ 338,722
1,000,000 Lear Corp.
8.110%, 05/15/09........................ 912,205
280,000 Level 3 Communications, Inc.
9.125%, 05/01/08........................ 251,300
2,000,000 Lockheed Martin Corp.
6.850%, 05/15/01........................ 1,990,080
930,000 Lockheed Martin Corp.
8.500%, 12/01/29........................ 949,562
600,000 Loews Corp.
7.625%, 06/01/23........................ 530,850
50,000 Lyondell Chemical Co.
9.875%, 05/01/07........................ 49,500
2,400,000 MCI WorldCom, Inc.
6.950%, 08/15/28........................ 2,114,160
169,000 McLeod USA, Inc.
8.125%, 02/15/09........................ 152,100
700,000 NBD Bank N.A.
8.250%, 11/01/24........................ 733,817
600,000 News America Holdings
8.250%, 10/17/46........................ 547,746
400,000 News America, Inc.
6.750%, 01/09/38........................ 366,376
2,020,000 News America, Inc., 144A
7.625%, 11/30/28........................ 1,822,868
2,000,000 Niagara Mohawk Power Corp.
7.750%, 05/15/06........................ 1,994,060
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 900,000 Niagara Mohawk Power Series G
7.750%, 10/01/08........................ $ 878,690
900,000 Niagara Mohawk Power Series H, Step Up
8.500%, 07/01/10........................ 686,556
2,700,000 Norfolk Southern Corp.
7.800%, 05/15/27........................ 2,579,553
140,000 Nortek, Inc. Series B
8.875%, 08/01/08........................ 127,400
90,000 NTL Communications Corp. Series B, Step
Up
12.375%, 10/01/08....................... 58,950
184,000 Orion Power Holdings, Inc.
12.000%, 05/01/10....................... 191,360
100,000 P & L Coal Holdings Corp. Series B
9.625%, 05/15/08........................ 93,250
115,000 Park Place Entertainment
9.375%, 02/15/07........................ 115,575
970,000 Pepsi Bottling Group, Inc. Series B
7.000%, 03/01/29........................ 872,782
740,000 Philip Morris Co., Inc., 144A
7.000%, 07/15/05........................ 697,102
105,000 Pioneer Natural Resource
9.625%, 04/01/10........................ 108,150
70,000 PSINet, Inc.
11.000%, 08/01/09....................... 65,100
127,000 PSINet, Inc. 144A
10.500%, 12/01/06....................... 117,475
690,000 Raytheon Co.
6.750%, 08/15/07........................ 648,276
375,000 Republic of New York Corp.
7.200%, 07/15/47........................ 310,275
1,740,000 RJ Reynolds Tobacco Holding, Inc. Series
B
7.750%, 05/15/06........................ 1,550,079
</TABLE>
The accompanying notes are an integral part of the financial statements.
102
<PAGE> 103
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 1,170,000 RJ Reynolds Tobacco Holding, Inc.\
Series B
7.875%, 05/15/09........................ $ 1,008,985
2,000,000 RJR Nabisco, Inc.
6.850%, 06/15/05........................ 1,866,120
2,000,000 Rohm + Hass Co.
7.850%, 07/15/29........................ 2,022,440
158,000 Safety-Kleen Corp.
9.250%, 05/15/09........................ 4,542
4,260,000 Seagram (Joseph) & Sons, Inc.
7.600%, 12/15/28........................ 4,068,641
2,000,000 Southern California Edison
6.500%, 06/01/01........................ 1,984,060
2,400,000 TCI Communications, Inc.
7.875%, 02/15/26........................ 2,341,224
950,000 TCI Communications, Inc.
8.750%, 08/01/15........................ 1,015,797
1,860,000 TCI Communications, Inc.
9.650%, 03/31/27........................ 2,054,928
800,000 Telecommunications, Inc.
7.875%, 08/01/13........................ 793,808
18,000,000 Tennessee Valley Authority
0.000%, 12/15/17 (a).................... 5,264,856
930,000 Tennessee Valley Authority
7.125%, 05/01/30........................ 930,288
50,000 Terex Corp. Series D
8.875%, 04/01/08........................ 45,250
2,000,000 Time Warner Entertainment
8.375%, 03/15/23........................ 2,024,660
160,000 United Pan-Europe Communications NV
0.000%, 02/01/10 (a).................... 76,000
1,980,000 USA Waste
7.000%, 07/15/28........................ 1,534,041
150,000 Voicestream Wireless Corp.
10.375%, 11/15/09....................... 156,000
850,000 Waste Management, Inc.
7.375%, 05/15/29........................ 689,367
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 135,000 Williams Communications Group, Inc.
10.875%, 10/01/09....................... $ 132,300
78,000 Winstar Communications, Inc., 144A
12.750%, 04/15/10....................... 73,125
109,000 Worldwide Flight Service
12.250%, 08/15/07....................... 75,755
-----------------
87,489,787
-----------------
MUNICIPAL OBLIGATIONS -- 0.5%
2,880,000 Toll Road Inv Part II, 144A
0.000%, 02/15/30 (a).................... 271,498
3,150,000 Toll Road Inv Part II, 144A
0.000%, 02/15/27 (a).................... 377,370
3,400,000 Toll Road Inv Part II, 144A
0.000%, 02/15/28 (a).................... 376,346
2,880,000 Toll Road Inv Part II, 144A
0.000%, 02/15/29 (a).................... 294,278
-----------------
1,319,492
-----------------
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $94,649,519)................................. 89,813,880
-----------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 54.4%
U.S. GOVERNMENT AGENCY MORTGAGE
BACKED OBLIGATIONS -- 33.4%
560,000 Federal Home Loan Mortgage Corp.
5.750%, 04/15/08........................ 514,250
15,600,973 Federal Home Loan Mortgage Corp.
6.500%, 09/01/27........................ 14,729,970
9,394,528 Federal Home Loan Mortgage Corp.
6.500%, 05/01/29........................ 8,878,768
7,101,702 Federal Home Loan Mortgage Corp.
7.000%, 01/01/28........................ 6,863,440
</TABLE>
The accompanying notes are an integral part of the financial statements.
103
<PAGE> 104
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 4,447,608 Federal Home Loan Mortgage Corp.
7.000%, 04/01/29........................ $ 4,299,250
3,173,000 Federal National Mortgage Association
5.125%, 02/13/04........................ 2,978,146
240,000 Federal National Mortgage Association
5.750%, 02/15/08........................ 220,838
230,000 Federal National Mortgage Association
6.000%, 05/15/08........................ 214,491
844,943 Federal National Mortgage Association
6.000%, 10/01/27........................ 778,750
9,133,425 Federal National Mortgage Association
6.500%, 03/01/28........................ 8,613,085
9,535,051 Federal National Mortgage Association
6.500%, 05/01/29........................ 8,999,658
6,086,125 Federal National Mortgage Association
7.000%, 03/01/28........................ 5,881,935
794,482 Federal National Mortgage Association
7.000%, 04/01/28........................ 767,827
870,000 Federal National Mortgage Association
7.125%, 02/15/05........................ 873,532
700,000 Federal National Mortgage Association
7.250%, 01/15/10........................ 707,049
328,304 Federal National Mortgage Association
8.500%, 12/01/26........................ 334,630
824,094 Federal National Mortgage Association
8.500%, 07/01/27........................ 839,975
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 980,000 Federal National Mortgage Association,
TBA
6.500%, 07/01/30........................ $ 923,954
3,100,000 Federal National Mortgage Association,
TBA
7.000%, 07/01/30........................ 2,992,957
15,932 Government National Mortgage Association
6.500%, 08/15/28........................ 15,128
678,127 Government National Mortgage Association
6.500%, 09/15/28........................ 643,916
39,088 Government National Mortgage Association
7.000%, 01/15/23........................ 38,149
4,363,452 Government National Mortgage Association
7.000%, 04/15/23........................ 4,258,599
46,168 Government National Mortgage Association
7.000%, 05/15/23........................ 45,059
515,689 Government National Mortgage Association
7.000%, 07/15/23........................ 503,297
614,005 Government National Mortgage Association
7.000%, 08/15/23........................ 599,250
561,629 Government National Mortgage Association
7.000%, 07/15/28........................ 546,206
338,968 Government National Mortgage Association
7.500%, 10/15/22........................ 337,920
102,505 Government National Mortgage Association
7.500%, 01/15/23........................ 102,125
680,756 Government National Mortgage Association
7.500%, 04/15/23........................ 678,230
</TABLE>
The accompanying notes are an integral part of the financial statements.
104
<PAGE> 105
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 44,154 Government National Mortgage Association
7.500%, 05/15/23........................ $ 43,990
427,580 Government National Mortgage Association
7.500%, 06/15/23........................ 425,993
184,172 Government National Mortgage Association
7.500%, 07/15/23........................ 183,489
663,110 Government National Mortgage Association
7.500%, 08/15/23........................ 660,649
704,583 Government National Mortgage Association
7.500%, 10/15/23........................ 701,969
81,373 Government National Mortgage Association
7.500%, 11/15/23........................ 81,071
632,642 Government National Mortgage Association
7.500%, 12/15/27........................ 615,466
1,266,647 Government National Mortgage Association
7.500%, 07/15/28........................ 1,259,579
67,289 Government National Mortgage Association
7.500%, 10/15/28........................ 66,850
1,121,075 Government National Mortgage Association
7.500%, 03/15/29........................ 1,114,113
193,186 Government National Mortgage Association
9.500%, 09/15/30........................ 201,995
900,000 Government National Mortgage
Association, TBA
6.500%, 07/01/30........................ 854,154
2,000,000 Government National Mortgage
Association, TBA
7.000%, 07/01/30........................ 1,944,060
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$ 2,500,000 Government National Mortgage
Association, TBA
7.500%, 07/01/30........................ $ 2,482,025
-----------------
88,815,787
-----------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 4.9%
3,000,000 Federal Home Loan Mortgage Corp.
6.783%, 08/18/05........................ 2,960,610
20,000,000 Resolution Funding Corp., TIGR Coupon
Strip
0.000%, 01/15/11 (b)(a)................. 10,076,800
-----------------
13,037,410
-----------------
U.S. TREASURY BONDS -- 1.4%
1,560,000
6.125%, 08/15/29........................ 1,575,600
140,000
6.250%, 05/15/30........................ 146,891
1,730,000
8.000%, 11/15/21........................ 2,088,435
-----------------
3,810,926
-----------------
U.S. TREASURY NOTES -- 14.7%
8,615,198
3.625%, 01/15/08 ++..................... 8,349,803
13,431,984
3.625%, 04/15/28 ++(b).................. 12,791,649
3,363,107
3.875%, 04/15/29 ++..................... 5,336,972
2,050,000
4.750%, 11/15/08........................ 1,862,298
10,000,000
5.250%, 11/15/28........................ 8,854,700
1,950,000
6.500%, 02/15/10........................ 2,016,729
-----------------
39,212,151
-----------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $148,903,451)................................ 144,876,274
-----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
105
<PAGE> 106
Portfolio of Investments
American Odyssey Funds, Inc. / Long-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
------------------------------------------------------------------------
<S> <C>
PREFERRED STOCKS -- 0.1%
5,000 News Corp., Ltd......................... $ 300,670
-----------------
TOTAL PREFERRED STOCKS
(Cost $325,200).................................... 300,670
-----------------
WARRANTS -- 0.0%
109 Worldwide Flight........................ 54
-----------------
TOTAL WARRANTS
(Cost $0).......................................... 54
-----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
---------
<S> <C>
PURCHASED OPTIONS -- 0.0%
142,500 Euro, Expires 9/18/00, Strike 92.75
0.000%,................................. 46,313
-----------------
TOTAL PURCHASED OPTIONS
(Cost $55,860)..................................... 46,313
-----------------
SHORT-TERM INVESTMENTS -- 1.5%
CASH EQUIVALENTS -- 1.2%
$ 206,395 Credit Agricole Indosuez
6.719%, 07/05/00 (c).................... 206,395
445,974 Fleet National Bank
7.125%, 10/31/00 (c).................... 445,974
619,184 Janus Money Market (c).................. 619,184
1,040,229 Merrimac Cash Fund Premium Class (c).... 1,040,229
825,578 Royal Bank of Canada
6.813%, 07/03/00 (c).................... 825,578
-----------------
3,137,360
-----------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.3%
$ 900,000 Federal Home Loan Mortgage Corp.
6.610%, 11/09/00 (d).................... $ 878,352
-----------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $4,015,712).................................. 4,015,712
-----------------
TOTAL INVESTMENTS -- 101.8%
(Cost $280,582,886)................................ 271,289,239
Other assets in excess of
liabilities -- (1.8)%................................ (4,910,226)
-----------------
TOTAL NET ASSETS -- 100.0%........................... $ 266,379,013
=================
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
144A -- Securities restricted for resale to Qualified Institutional Buyers
FLIRB -- Front Loaded Interest Reduction Bond
PDI -- Past Due Interest
REMIC -- Real Estate Mortgage Investment Conduit
Step Up -- Security is a "step up" bond where the coupon increases or steps up
at a predetermined rate. Rates shown are current coupon and next coupon
rate when security steps up.
TBA -- Delayed Delivery Transaction (Note 9)
TIGR -- Treasury Income Growth Receipts (a stripped U.S. Bond)
Variable Rate -- The rates shown on variable rate securities reflect the
currency interest rate at June 30, 2000, which are subject to change based
on the terms of the security, including varying reset dates.
Yankee-Dollar -- U.S. Dollar denominated bonds issued by non-U.S. companies in
the U.S.
(a) Security is a zero coupon bond.
(b) All or a portion of these securities have been segregated to cover delayed
delivery transactions.
(c) Represents investments of security lending collateral (Note 2).
(d) Security has been pledged to cover collateral requirements for open futures.
++ Inflation Indexed
The accompanying notes are an integral part of the financial statements.
106
<PAGE> 107
Portfolio of Investments
American Odyssey Funds, Inc. / Intermediate-Term Bond Fund / June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
FOREIGN OBLIGATIONS -- 3.7%
CORPORATE DEBT -- 3.7%
$5,000,000 Telecom Corporation of New Zealand,
Ltd., 144A
6.250%, 02/10/03........................ $ 4,876,350
-----------------
TOTAL FOREIGN OBLIGATIONS
(Cost $5,002,970)................................. 4,876,350
-----------------
U.S. CORPORATE OBLIGATIONS -- 81.5%
CORPORATE BONDS & NOTES -- 81.5%
5,800,000 Bank of America
7.800%, 02/15/10........................ 5,770,304
5,420,000 CarrAmerica Realty Corp.
6.625%, 10/01/00........................ 5,399,838
3,000,000 Clear Channel Communications, Inc.
7.875%, 06/15/05........................ 3,008,610
1,450,000 CMS Energy Corp.
7.625%, 11/15/04........................ 1,370,105
3,200,000 CMS Energy Corp. Series B
6.750%, 01/15/04........................ 2,964,771
1,000,000 Columbia/HCA Healthcare Corp.
6.630%, 07/15/45........................ 952,210
3,000,000 Columbia/HCA Healthcare Corp.
6.870%, 09/15/03........................ 2,775,000
5,700,000 Comdisco, Inc., Series MTNH
7.250%, 09/20/01........................ 5,596,642
1,400,000 Dayton Hudson Co.
6.800%, 10/01/01........................ 1,392,622
5,800,000 Deutsche Telekom
8.000%, 06/15/10........................ 5,783,586
5,700,000 Federated Department Stores
8.500%, 06/01/10........................ 5,807,616
6,000,000 Finova Capital Corp.
6.250%, 11/01/02........................ 5,249,940
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
$5,000,000 Franchise Finance Corp. of America -
REIT
7.000%, 11/30/00........................ $ 4,982,850
1,800,000 Household Finance Corp.
8.000%, 05/09/05........................ 1,815,246
4,300,000 International Paper Co.
8.125%, 07/08/05........................ 4,329,283
1,200,000 MBNA Corp.
6.000%, 12/26/00........................ 1,190,736
3,000,000 Nationwide Health Properties
6.900%, 10/01/37........................ 2,646,150
6,000,000 NorAm Energy Corp.
7.500%, 08/01/00........................ 6,000,900
5,400,000 Norfolk Southern Corp.
6.875%, 05/01/01........................ 5,363,226
4,600,000 Orix Credit Alliance, Inc. MTN, 144A
6.780%, 05/15/01........................ 4,560,426
5,800,000 Osprey Trust, 144A
8.310%, 01/15/03........................ 5,822,034
5,700,000 Park Place Entertainment Corp.
7.950%, 08/01/03........................ 5,625,187
5,800,000 PP & L Capital Funding
7.750%, 04/15/05........................ 5,716,190
5,000,000 RJR Nabisco, Inc.
6.700%, 06/15/02........................ 4,848,200
3,200,000 Saks, Inc.
7.250%, 12/01/04........................ 2,877,530
1,700,000 Saks, Inc.
7.500%, 12/01/10........................ 1,392,428
5,800,000 Utilicorp United, Inc.
6.875%, 10/01/04........................ 5,537,892
-----------------
108,779,522
-----------------
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $111,506,336)............................... 108,779,522
-----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
107
<PAGE> 108
Portfolio of Investments
American Odyssey Funds, Inc. / Intermediate-Term Bond Fund / June 30, 2000
(Unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 7.2%
U.S. TREASURY BONDS -- 4.0%
$4,000,000
12.000%, 08/15/13....................... $ 5,400,000
-----------------
U.S. TREASURY NOTES -- 3.2%
4,240,640
3.678%, 07/15/02 ++..................... 4,211,464
-----------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $9,601,424)................................. 9,611,464
-----------------
SHORT-TERM INVESTMENTS -- 5.8%
COMMERCIAL PAPER -- 5.8%
2,700,000 American Express Credit Corp.
5.400%, 07/06/00 (a).................... 2,697,469
5,100,000 UBS Finance Delaware, Inc.
5.760%, 07/05/00 (a).................... 5,095,999
-----------------
7,793,468
-----------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $7,793,468)................................. 7,793,468
-----------------
TOTAL INVESTMENTS -- 98.2%
(Cost $133,904,198)............................... 131,060,804
Other assets in excess of liabilities -- 1.8%....... 2,388,820
-----------------
TOTAL NET ASSETS -- 100.0%.......................... $ 133,449,624
=================
</TABLE>
NOTES TO THE PORTFOLIO OF INVESTMENTS:
144A Securities restricted for resale to Qualified Institutional Buyers
REIT Real Estate Investment Trust
++ Inflation Indexed
(a) Rate noted reflects yield to maturity at issue.
The accompanying notes are an integral part of the financial statements.
108
<PAGE> 109
Notes to Financial Statements
American Odyssey Funds, Inc. / June 30, 2000 (Unaudited)
NOTE 1. Organization
American Odyssey Funds, Inc., (the "Company"), was organized as a Maryland
corporation in December 1992. It is registered under the Investment Company Act
of 1940 as an open-end diversified management investment company. It consists of
six separate funds (each a "Fund", collectively the "Funds"): Global High-Yield
Bond Fund, International Equity Fund, Emerging Opportunities Fund, Core Equity
Fund, Long-Term Bond Fund and Intermediate-Term Bond Fund. Shares of the Funds
are offered only to life insurance company separate accounts to serve as the
underlying investment vehicle for variable annuity and variable life insurance
contracts; qualified retirement plans, including Section 403(b) arrangements, as
permitted by Treasury regulations; and insurance companies and their affiliates.
NOTE 2. Significant Accounting Policies
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
a) Securities Valuation
Securities traded on a national exchange and those traded on over-the-counter
markets are valued at the last sales price; if there was no sale on such day,
the securities are valued at the mean between the most recently quoted bid and
asked prices. Securities for which market quotations are not readily available
are valued in good faith at fair value using methods determined by the Board of
Directors. Short-term securities which mature in 60 days or less are valued at
amortized cost, which approximates market value, unless this method does not
represent fair market value, at which time the security will be valued at its
fair value as determined in good faith by the Board of Directors.
Futures contracts and options are valued based upon their quoted daily
settlement prices.
b) Off Balance Sheet Risk
The Funds may utilize futures contracts, options, and forward foreign currency
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values and for investment purposes.
The primary risks associated with the use of these financial instruments are (a)
an imperfect correlation between the change in market value of the other
securities held by the Funds and the change in market value of these financial
instruments, (b) the possibility of an illiquid market, and (c) the
non-performance of the counterparties under the terms of the contract. As a
result, the use of these financial instruments may involve, to a varying degree,
risk of loss in excess of the amount recognized in the Statement of Assets and
Liabilities.
109
<PAGE> 110
c) Futures Contracts
Initial margin deposits made upon entering into futures contracts, if
applicable, are recognized as assets due from the broker. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the value of the contract at the end of each day's trading. Changes in
unrealized gains or losses are recorded as a variation margin and settled daily
with the broker through cash receipts or cash payments, respectively. Gains and
losses are realized upon the expiration or closing of the futures contract.
d) Options
The premium paid by a Fund for the purchase of a call or put option is included
in the Fund's Statement of Assets and Liabilities as an investment and
subsequently marked-to-market to reflect the current market value of the option
purchased. If an option which the Fund has purchased expires on its stipulated
expiration date, the Fund realizes a loss for the amount of the cost of the
option. If the Fund enters into a closing transaction, it realizes a gain or
loss, depending on whether the proceeds from the sale are greater or less than
the cost of the option. If the Fund exercises a put option, it realizes a gain
or loss from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. If the Fund exercises a call
option, the cost of the security which the Fund purchases upon exercise will be
increased by the premium originally paid.
The premium received for a written option is recorded as an asset with an
equivalent liability. The liability is marked-to-market based on the option's
quoted daily settlement price. When an option expires or the Fund enters into a
closing purchase transaction, the Fund realizes a gain (or loss if the cost of
the closing purchase transaction exceeds the premium received when the option
was sold) without regard to any unrealized gain or loss on the underlying
security and the liability related to such option is eliminated. When a written
call option is exercised, the Fund realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale are increased by the premium
originally received. If a written put option is exercised, the amount of the
premium originally received will reduce the cost of the security which the Fund
is obligated to purchase.
e) Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to manage their
exposure to fluctuations in certain foreign currencies. The Global High-Yield
Bond Fund may enter into forward foreign currency contracts for investment
purposes as well. A forward currency contract is a commitment to purchase or
sell a foreign currency at a future date at a set price. The forward currency
contracts are valued at the forward rate and are marked-to-market daily. The
change in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed, the Fund records 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. Risks arise from the possible inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in currency values.
110
<PAGE> 111
f) Repurchase Agreements
The Funds may enter into repurchase agreements with the seller wherein the
seller and the buyer agree at the time of sale to a repurchase of the security
at a mutually agreed upon time and price. The Funds will not enter into
repurchase agreements unless the agreement is fully collateralized. Securities
purchased subject to the repurchase agreement are deposited with a custodian
and, pursuant to the terms of the repurchase agreement, must have an aggregate
market value at least equal to the repurchase price plus accrued interest. If
the value of the underlying securities falls below the value of the repurchase
price plus accrued interest, the seller is required to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Funds maintain
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller. Repurchase agreements could involve certain
risks in the event of default or insolvency of the other party, including
possible delays or restrictions upon the Fund's ability to dispose of the
underlying securities.
g) Currency Translation
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the rate of exchange at the end of the period. Purchases and
sales of securities are translated at the rates of exchange prevailing when such
securities were acquired or sold. Income is translated at rates of exchange
prevailing when accrued.
The Fund does not isolate that portion of currency gains and losses resulting
from changes in foreign exchange rates on investments denominated in foreign
currencies from the fluctuations arising from changes in market prices of these
investments held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of foreign short-term securities and foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities
transactions and the difference in the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, from the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities denominated in foreign currencies other than investments in
securities at fiscal year end, resulting from changes in the exchange rate and
changes in the value of forward foreign currency exchange contracts held.
h) Taxes
It is the Company's policy to comply with the provisions of the Internal Revenue
Code Subchapter M applicable to a regulated investment company. Under such
provisions, the Company will not be subject to federal income tax as the Company
intends to distribute as dividends substantially all of the net investment
income, if any, of each Fund. The Company also intends to distribute annually
all of its net realized capital gains of each Fund. Such dividends and
distributions are automatically reinvested in additional shares of the Funds.
111
<PAGE> 112
i) Distributions
Dividends from net investment income and capital gains distributions are
determined in accordance with U.S. federal income tax regulations which may
differ from generally accepted accounting principles. As a result, dividends and
distributions differ from net investment income and net realized capital gains
due to timing differences, primarily the deferral of losses due to wash sales
and the deferral of net realized capital losses recognized subsequent to October
31, 1999. Distributions which were the result of permanent differences between
book and tax amounts, primarily due to the differing treatment of foreign
currency transactions and the inability to carry net operating losses forward to
future years, have been reclassified among additional paid-in capital,
undistributed net investment income and accumulated net realized gain on
investments, futures contracts, option contracts and foreign currency
transactions.
j) Securities Transactions
Securities transactions are accounted for on the trade date. Realized gains and
losses are determined on the identified cost basis. Dividend income is recorded
on the ex-dividend date. Interest income is accrued daily as earned.
k) Security Lending
The Funds may lend their securities to qualified brokers. The Company closely
monitors the credit quality of the qualified brokers. The loans are
collateralized at all times with cash or securities with a market value at least
equal to the market value of the securities on loan. As with any extensions of
credit, the Funds may bear the risk of delay in recovery or even loss of rights
in the collateral if the borrowers of the securities fail financially. The Funds
receive compensation for lending their securities (see Note 10).
NOTE 3. Management, Subadvisory, and Transfer Agency Agreements and Transactions
with Affiliates
The Company has entered into a management agreement with American Odyssey Funds
Management LLC (AOFM), pursuant to which AOFM manages the investment operations
of the Company and administers the Company's affairs. AOFM has entered into
subadvisory agreements for investment advisory services in connection with the
management of each of the Funds. AOFM supervises the subadvisors' performance of
advisory services and will make recommendations to the Company's Board of
Directors with respect to the retention or renewal of the subadvisory
agreements. AOFM pays for the cost of compensating officers of the Company,
occupancy, and certain clerical and accounting costs of the Company. The Company
bears all other costs and expenses. Each Fund pays AOFM a fee for its services
that is computed daily and paid monthly at an annual rate of 0.25% of the Fund's
average net assets. Each Fund pays its respective subadvisor(s) directly.
AOFM's management fees for the period January 1, 2000 to June 30, 2000 were
$2,160,067. During the period January 1, 2000 to June 30, 2000, the Funds also
paid $2,860,527 to the Subadvisors.
112
<PAGE> 113
Each Fund pays its subadvisor (or, for any Fund with more than one subadvisor,
each of its subadvisors) a fee that is computed daily and paid monthly at the
annual rates specified below based upon the value of the Fund's average daily
net assets allocated to that subadvisor.
<TABLE>
<CAPTION>
FUND & SUBADVISOR SUBADVISOR'S FEE
-------------------------------------------------- ----------------------------------------------------
<S> <C>
Global High-Yield Bond Fund
-Credit Suisse Asset Management LLC - 0.425% of assets
International Equity Fund
-Bank of Ireland Asset Management (U.S.) Limited - 0.45% for first $50 million in assets, plus
- 0.40% for next $50 million in assets, plus
- 0.30% for assets over $100 million
Emerging Opportunities Fund
-Chartwell Investment Partners - 0.70% for the first $50 million in assets, plus
- 0.50% for the next $50 million in assets, plus
- 0.45% for assets over $100 million
-SG Cowen Asset Management Inc. - 0.50% for the first $50 million in assets, plus
- 0.45% for the next $50 million in assets, plus
- 0.40% for assets over $100 million
-State Street Global Advisors - 0.08% for the first $50 million in assets, plus
- 0.06% for the next $50 million in assets, plus
- 0.04% for assets over $100 million
Core Equity Fund
-Equinox Capital Management, LLC - 0.35% for first $100 million in assets, plus
- 0.30% for assets over $100 million
-Putnam Investment Management Inc. - 0.45% of assets
-State Street Global Advisors - 0.05% for the first $50 million in assets, plus
- 0.04% for the next $50 million in assets, plus
- 0.02% for assets over $100 million
Long-Term Bond Fund - 0.25% for the first $250 million in assets, plus
-Western Asset Management Company - 0.15% for assets over $250 million
Intermediate-Term Bond Fund
-Travelers Asset Management International - 0.25% for the first $100 million in assets, plus
Company LLC - 0.20% for the next $100 million in assets, plus
- 0.15% for assets over $200 million
</TABLE>
The Company has entered into a transfer agency agreement with AOFM pursuant to
which AOFM is responsible for shareholders' record keeping and communications.
AOFM does not currently charge any additional fees for these services.
113
<PAGE> 114
Travelers Asset Management International Company LLC, an affiliate of AOFM,
serves as subadvisor for the Intermediate-Term Bond Fund. State Street Global
Advisors, an affiliate of AOFM, serves as subadvisor of both the Core Equity
Fund and the Emerging Opportunities Fund.
NOTE 4. Directed Brokerage Arrangements
The International Equity Fund, Emerging Opportunities Fund and Core Equity Fund
have entered into directed brokerage service arrangements with certain
broker-dealers. The broker-dealers have agreed to pay certain Fund expenses in
exchange for the Fund directing a portion of the fund brokerage to these
broker-dealers. In no event would the Fund pay additional brokerage or receive
inferior execution of transactions for executing transactions with these certain
broker dealers.
Under these arrangements for the period ended June 30, 2000, broker-dealers paid
custodian expenses for the International Equity Fund, Emerging Opportunities
Fund and the Core Equity Fund of $21,849, $45,963 and $72,717, respectively.
NOTE 5. Securities Transactions
The cost of purchases and proceeds from sales of investment securities
(excluding short-term investments and repurchase agreements), for the period
ended June 30, 2000 were:
<TABLE>
<CAPTION>
Global Emerging Intermediate-
High-Yield International Opportunities Core Equity Long-Term Term
Bond Fund Equity Fund Fund Fund Bond Fund Bond Fund
------------ ------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Purchases:
U.S. Government........ $ 188,816 $ -- $ -- $ -- $140,116,826 $ 24,474,187
Non-U.S. Government.... 27,309,554 46,499,787 384,823,662 88,980,119 39,477,024 39,391,969
------------ ------------ ------------ ------------ ------------ ------------
Total.................. $ 27,498,370 $ 46,499,787 $384,823,662 $ 88,980,119 $179,593,850 $ 63,866,156
============ ============ ============ ============ ============ ============
Sales:
U.S. Government........ $ 121,353 $ -- $ -- $ -- $116,239,869 $ 43,486,722
Non-U.S. Government.... 27,403,974 65,256,857 410,617,907 93,418,140 27,342,968 21,276,987
------------ ------------ ------------ ------------ ------------ ------------
Total.................. $ 27,525,327 $ 65,256,857 $410,617,907 $ 93,418,140 $143,582,837 $ 64,763,709
============ ============ ============ ============ ============ ============
</TABLE>
At June 30, 2000, the cost of securities for federal income tax purposes and the
unrealized appreciation (depreciation) of investments for federal income tax
purposes for each Fund was as follows:
<TABLE>
<CAPTION>
Global Emerging Intermediate-
High-Yield International Opportunities Core Equity Long-Term Term
Bond Fund Equity Fund Fund Fund Bond Fund Bond Fund
------------ ------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Federal Income Tax
Cost................... $ 98,490,760 $305,562,496 $367,213,167 $422,834,568 $280,582,886 $133,904,198
============ ============ ============ ============ ============ ============
Gross Unrealized
Appreciation........... $ 2,941,575 $ 95,241,412 $ 72,981,735 $ 46,835,962 $ 2,001,599 $ 239,271
------------ ------------ ------------ ------------ ------------ ------------
Gross Unrealized
Depreciation........... (12,911,294) (15,317,299) (23,688,845) (24,508,504) (11,295,246) (3,082,665)
------------ ------------ ------------ ------------ ------------ ------------
Net Unrealized
Appreciation
(Depreciation)......... $ (9,969,719) $ 79,924,113 $ 49,292,890 $ 22,327,458 $ (9,293,647) $ (2,843,394)
============ ============ ============ ============ ============ ============
</TABLE>
114
<PAGE> 115
NOTE 6. Futures Contracts
At June 30, 2000, the following Funds had entered into the following futures
contracts:
Global High-Yield Bond Fund:
<TABLE>
<CAPTION>
Number Underlying Expiration Notional Notional Unrealized
of Contracts Face Value Securities Date Cost Value Appreciation
------------ ----------- ------------------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Long
Position
32 $ 3,200,000 U.S. Long-Term Treasury 9/30/00 $ 3,098,192 $ 3,115,000 $ 16,808
Bond =========
</TABLE>
<TABLE>
<CAPTION>
Number Underlying Expiration Notional Notional Unrealized
of Contracts Face Value Securities Date Cost Value Depreciation
------------ ----------- ------------------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Short
Position
44 $ 4,400,000 5 Year U.S. Treasury Note 9/30/00 $ 4,320,673 $ 4,356,687 $ (36,014)
21 2,100,000 10 Year U.S. Treasury 9/30/00 2,049,343 2,068,172 (18,829)
Note ---------
Total: $ (54,843)
=========
</TABLE>
Emerging Opportunities:
<TABLE>
<CAPTION>
Number Underlying Expiration Notional Notional Unrealized
of Contracts Face Value Securities Date Cost Value Depreciation
------------ ----------- ------------------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Long
Position
15 $ 7,500 Midcap 400 9/30/00 $ 3,766,424 $ 3,662,250 $(104,174)
12 6,000 Russell 2000 9/30/00 3,146,910 3,135,600 (11,310)
---------
Total: $(115,484)
=========
</TABLE>
Core Equity Fund:
<TABLE>
<CAPTION>
Number Underlying Expiration Notional Notional Unrealized
of Contracts Face Value Securities Date Cost Value Appreciation
------------ ----------- ------------------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Long
Position
10 $ 5,000 S & P Future 9/30/00 $ 3,729,925 $ 3,670,250 $ 59,675
=========
</TABLE>
Long Term Bond Fund:
<TABLE>
<CAPTION>
Unrealized
Number Underlying Expiration Notional Notional Appreciation/
of Contracts Face Value Securities Date Cost Value (Depreciation)
------------ ----------- ------------------------- ---------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
Long
Position
5 $ 1,250,000 Euro Bond 6/30/01 $ 1,155,775 $ 1,161,000 $ 5,225
10 Year U.S. Treasury
83 8,300,000 Note 9/30/00 6,818,532 6,843,843 25,311
U.S. Long-Term Treasury
42 4,200,000 Bond 9/30/00 4,088,899 4,088,438 (461)
---------
Total: $ 30,075
=========
</TABLE>
<TABLE>
<CAPTION>
Number Underlying Expiration Notional Notional Unrealized
of Contracts Face Value Securities Date Cost Value Depreciation
------------ ----------- ------------------------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Short
Position
83 $ 8,300,000 10 Year U.S. Treasury 9/30/00 $ 8,094,747 $ 8,174,203 $ (79,456)
Note
120 12,000,000 5 Year U.S. Treasury Note 9/30/00 11,773,666 11,881,875 (108,209)
---------
Total: $(187,665)
=========
</TABLE>
115
<PAGE> 116
At June 30, 2000, the Funds had segregated sufficient cash and/or securities to
cover margin requirements on open future contracts.
NOTE 7. Written Options
The Long-Term Bond Fund's activity in written options during the period ended
June 30, 2000 was as follows:
<TABLE>
<CAPTION>
Number of
Options Premiums
--------- ----------
<S> <C> <C>
Options Outstanding at December 31, 1999.......... 172 $ 158,007
Options Written................................. 1,514 914,363
Options Canceled in Closing Transactions........ (839) (570,663)
Options Expired................................. (611) (335,012)
Options Exercised............................... -- --
------- ---------
Options Outstanding at June 30, 2000.............. 236 $ 166,695
======= =========
Cost of closing transactions...................... $ 494,594
=========
</TABLE>
NOTE 8. Forward Foreign Currency Contracts
The International Equity Fund and the Global High-Yield Bond Fund had forward
foreign currency contracts which contractually obligate the Funds to deliver or
receive currencies at specified future dates. The following contracts were open
at June 30, 2000:
Global High-Yield Bond Fund:
<TABLE>
<CAPTION>
Local Foreign
Principal Contract Settlement Current Unrealized
Sales Amount U.S. $ Value Date U.S. $ Value Appreciation
------------------------- --------- ------------ ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Euro Dollar.............. 766,906 $740,663 9/22/00 $735,747 $4,916
======== ======== ======== ======
</TABLE>
International Equity Fund:
<TABLE>
<CAPTION>
Local Foreign Unrealized
Principal Contract Settlement Current Appreciation/
Buys Amount U.S. $ Value Date U.S. $ Value (Depreciation)
------------------------- ----------- ------------ ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
British Pound Sterling... 188,701 $ 282,995 7/3/00 $ 285,694 $ 2,699
British Pound Sterling... 120,804 181,122 7/5/00 182,897 1,775
British Pound Sterling... 122,476 186,187 7/6/00 185,428 (759)
Japanese Yen............. 220,485,442 2,103,299 7/3/00 2,083,937 (19,362)
Japanese Yen............. 19,512,017 185,923 7/5/00 184,419 (1,504)
----------- ----------- ------------ --------
Total Buys............... 240,429,440 $ 2,939,526 $ 2,922,375 $(17,151)
=========== =========== ============ ========
</TABLE>
116
<PAGE> 117
<TABLE>
<CAPTION>
Local Foreign Unrealized
Principal Contract Settlement Current Appreciation/
Sales Amount U.S. $ Value Date U.S. $ Value (Depreciation)
------------------------- ------------- ------------ ----------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Japanese Yen............. 200,115,000 $ 1,891,446 7/3/00 $ 1,891,404 $ 42
Japanese Yen............. 318,253,000 3,076,395 7/18/00 3,007,875 68,520
Japanese Yen............. 179,833,000 1,712,695 7/28/00 1,699,593 13,102
Japanese Yen............. 166,797,000 1,561,161 8/9/00 1,579,268 (18,107)
Japanese Yen............. 304,747,000 2,890,789 8/21/00 2,891,758 (969)
Japanese Yen............. 260,897,000 2,466,178 8/30/00 2,479,758 (13,580)
Japanese Yen............. 188,439,000 1,819,436 9/5/00 1,793,041 26,395
------------- ------------ ------------ --------
Total Sales.............. 1,619,081,000 $ 15,418,100 $ 15,342,697 $ 75,403
============= ============ ============ ========
</TABLE>
NOTE 9. Delayed Delivery Transactions
The Long-Term Bond Fund may purchase and sell securities on a when-issued or
forward commitment basis. Payment and delivery may take place a month or more
after the date of the transactions. The price of the underlying securities and
the date when the securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The Fund instructs its custodian to
segregate securities having a value at least equal to the net amount of the
purchase commitments.
At June 30, 2000, the Fund has entered into the following delayed delivery
transactions:
<TABLE>
<CAPTION>
Type Security Settlement Date Payable Amount
---- ----------------------------------- --------------- --------------
<S> <C> <C> <C>
Buy Federal National Mortgage
Association, TBA, 6.5%............. 7/17/00 $ 917,831
Buy Federal National Mortgage
Association, TBA, 7%............... 7/17/00 2,972,125
Buy Government National Mortgage
Association, TBA, 6.5%............. 7/24/00 2,098,938
Buy Government National Mortgage
Association, TBA, 7%............... 7/24/00 1,957,500
Buy Government National Mortgage
Association, TBA, 7.5%............. 7/24/00 3,687,281
Buy Government National Mortgage
Association, 7.5%, 3/15/29......... 7/24/00 1,120,667
------------
$ 12,754,342
============
</TABLE>
NOTE 10. Securities Lending
<TABLE>
<CAPTION>
Market Value of Securities
Loaned Securities Collateral Value Lending Fees*
----------------- ---------------- -------------
<S> <C> <C> <C>
Global High-Yield Bond Fund........ $ 1,095,345 $ 1,139,500 $ 478
International Equity Fund.......... 24,934,050 26,182,895 10,751
Emerging Opportunities Fund........ 35,168,932 36,401,841 11,757
Core Equity Fund................... 8,650,662 9,142,232 424
Long-Term Bond Fund................ 3,037,666 3,137,360 630
</TABLE>
* Net of broker fees
Securities lending fees are included in interest income in the Statements of
Operations.
117
<PAGE> 118
NOTE 11. Federal Income Taxes
For federal income tax purposes, the Funds indicated below have a capital loss
carryforward as of December 31, 1999 which is available to offset future capital
gains, if any.
<TABLE>
<CAPTION>
Capital Loss Expiration
Carryforward Date
------------ ----------
<S> <C> <C>
Global High-Yield Bond $ 85,972 12/31/2002
148,584 12/31/2005
4,479,269 12/31/2006
578,667 12/31/2007
----------
$5,292,492
==========
Long-Term Bond Fund $7,552,317 12/31/2007
==========
Intermediate-Term Bond Fund $3,042,240 12/31/2007
==========
</TABLE>
The International Equity Fund and the Core Equity Fund elected to defer to their
fiscal year ending December 31, 2000, $123,961 and $3,205,015, respectively, of
losses recognized during the period November 1, 1999 to December 31, 1999.
118
