Report of Independent Accountants
To the Board of Directors of
Select Asset Fund, Series 2, Inc.
We have examined management's assertion, included in the accompanying
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940, that Select Asset Fund, Series 2, Inc. (the
"Fund") was in compliance with the requirements of subsection (b) and (c) of
Rule 17f-2 of the Investment Company Act of 1940 ("the Act") as of
December 31, 1998 with respect to securities and similar investments reflected
in the investment account of the Fund. Management is responsible for the
Fund's compliance with those requirements. Our responsibility is to express
an opinion on management's assertion about the Fund's compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary
in the circumstances. Included among our procedures were the following tests
performed as of December 31, 1998, and with respect to agreement of security
and similar investments purchases and sales, for the year ended December 31,
1998;
* Roll forward of securities held at December 31, 1998 and subsequent review
of the disposal of all securities.
* Reconciliation of all securities and investments to the books and records
of the Fund and the Custodian.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Fund's
compliance with specified requirements.
In our opinion, management's assertion that Select Asset Fund, Series 2, Inc.
was in compliance with the requirements of subsection (b) and (c) of Rule 17f-
2 of the Investment Company Act of 1940 as of December 31, 1998, with respect
to securities and similar investments reflected in the investment account of
the Fund is fairly stated, in all material respects.
This report is intended solely for the information and use of management of
Select Asset Fund, Series 2, Inc. and the Securities and Exchange Commission
and should not be used for any other purpose.
Ernst & Young, LLP
Detroit, Michigan
February 12, 1999
SELECT ASSET FUND, SERIES 2, INC.
Portfolio of Investments
December 31, 1998
No. of
Shares Market Value
COMMON STOCK
BUILDING AND CONSTRUCTION 1.49%
BUILDING MATERIALS
2,900 GEORGIA PACIFIC CORP 169,831.25
66,400 HOME DEPOT 4,062,850.00
1,400 MASCO CORP 40,250.00
7,900 OWENS CORNING 279,956.25
PAINT AND FLAT GLASS
800 PPG INDUS INC 46,600.00
20,000 SHERWIN WILLIAMS CO 587,500.00
MISCELLANEOUS
1,400 FLUOR CORP 59,587.50
8,800 FOSTER WHEELER CORP 116,050.00
5,800 KAUFMAN & BROAD HOME CORP 166,750.00
TOTAL BUILDING AND CONSTRUCTION $5,529,375.00
CHEMICALS AND DRUGS 8.91%
CHEMICALS
1,800 AIR PRODS & CHEMS INC 72,000.00
4,800 AMGEN INC 501,900.00
63,200 BOSTON SCIENTIFIC CORP 1,694,550.00
6,900 DOW CHEMICAL CO 627,468.75
4,300 DUPONT DENEMOURS & CO 228,168.75
500 EASTMAN CHEMICAL CO 22,375.00
15,225 ENGLEHARD CORP 296,887.50
4,100 FMC CORP-NEW 229,600.00
22,300 HERCULES INC 610,462.50
30,700 MONSANTO CO 1,458,250.00
13,100 MORTON INTERNATIONAL INC 320,950.00
8,700 NALCO CHEM CO 269,700.00
23,100 PRAXIAIR INC 814,275.00
10,000 SIGMA-ALDRICH CORP 293,750.00
16,800 UNION CARBIDE CORP 714,000.00
7,300 WR GRACE & CO NEW 114,518.75
DRUGS
4,400 ABBOT LABS 215,600.00
22,400 AMERICAN HOME PRODUCTS 1,261,400.00
21,200 BRISTOL MYERS SQUIBB CO 2,836,825.00
9,700 JOHNSON & JOHNSON 813,587.50
20,400 LILLY ELI & CO 1,813,050.00
29,400 MERCK & CO., INC 4,342,012.50
38,700 PFIZER INC 4,854,431.25
44,590 PHARMACIA & UPJOHN INC 2,524,908.75
2,400 SCHERING PLOUGH 132,600.00
15,800 WALGREEN CO 925,287.50
COSMETICS
1,300 ALBERTO CULVER CO CL B 34,693.75
5,200 AVON PRODUCTS INC 230,100.00
HEALTH PRODUCTS/CARE
12,300 BARD CR INC 608,850.00
5,200 BAXTER INTL INC. 334,425.00
32,800 BECTON DICKINSON & CO 1,400,150.00
24,505 COLUMBIA/HCA HEALTHCARE 606,498.75
10,600 GUIDANT CORP 1,168,650.00
9,200 HCR MANOR CARE 270,250.00
11,500 TENET HEALTHCARE CORP 301,875.00
3,000 UTD HEALTHCARE CORP 129,187.50
TOTAL CHEMICALS AND DRUGS $33,073,238.75
CONSUMER PRODUCTS 10.77%
CONFECTIONS AND BEVERAGES
15,600 ANHEUSER-BUSCH COS 1,023,750.00
10,000 BROWN FORMAN INC CL B 756,875.00
13,200 COCA COLA CO 882,750.00
6,900 PEPSICO INC 282,468.75
CONTAINERS
18,300 AVERY DENNISON CORP 824,643.75
6,200 BALL CORP 283,650.00
21,900 CROWN CORK & SEAL INC 674,793.75
2,100 OWENS - ILLINOIS INC 64,312.50
6,874 SEALED AIR CORP 351,003.63
9,700 TEMPLE INLAND INC 575,331.25
PACKAGED FOOD
35,800 BESTFOODS 1,906,350.00
2,200 CAMPBELL SOUP CO 121,000.00
2,000 CONAGRA 63,000.00
5,200 COORS ADOLPH CO CL B 293,475.00
700 GENERAL MILLS INC 54,425.00
2,050 HEINZ H J CO 116,081.25
15,000 HERSHEY FOODS CORP 932,812.50
1,200 KELLOGG CO 40,950.00
7,200 PIONEER HI BRED INTL INC 194,400.00
800 QUAKER OATS CO 47,600.00
51,000 RALSTON-PURINA GROUP 1,651,125.00
12,800 SARA LEE CORP 360,800.00
38,400 SYSCO CORP 1,053,600.00
PAPER
12,600 AMERICAN GREETINGS CL A 517,387.50
9,800 BEMIS CO 371,787.50
10,700 BOISE CASCADE CORP 331,700.00
12,500 FORT JAMES CORPORATION 500,000.00
5,836 INTERNATIONAL PAPER CO 261,525.75
5,968 KIMBERLY CLARK CORP 325,256.00
4,400 POTLATCH CORP 162,250.00
15,900 UNION CAMP CORP 1,073,250.00
42,400 WILLIAMETTE INDUSTRIAL 1,420,400.00
PRINTING AND PUBLISHING
7,700 JOSTENS INC 201,643.75
800 MCGRAW-HILL COMPANIES INC 81,500.00
46,200 TIME WARNER INC 2,867,287.50
14,650 WESTVACO CORP 392,803.13
RECREATIONAL EQUIPMENT
11,300 BRUNSWICK CORP 279,675.00
29,800 HARRAH'S ENTERTAINMENT 467,487.50
24,500 HASBRO INC 885,062.50
31,581 MATTEL INC 720,441.56
SOAPS
17,800 CLOROX CO 2,079,262.50
OTHER CONSUMER PRODUCTS
1,500 COLGATE PALMOLIVE CO 139,312.50
26,600 FORTUNE BRANDS INC 841,225.00
38,300 GILLETTE CO 1,850,368.75
9,200 PROCTER & GAMBLE CO 840,075.00
43,400 RUBBERMAID INC 1,364,387.50
2,200 SPRINGS INDUS INC 91,162.50
1,800 TUPPERWARE CORPORATION 29,587.50
15,300 UST INC 533,587.50
PHOTOGRAPHY
700 EASTMAN KODAK CO 50,400.00
7,700 POLAROID CORP 143,893.75
HOUSEHOLD FURN/APPLIANCES
5,800 ARMSTRONG WORLD IND 349,812.50
11,000 MAYTAG CO 684,750.00
RETAIL
72,800 FEDERATED DEPT STORES NEW 3,171,350.00
APPAREL
2,600 NIKE INC CL B 105,462.50
19,700 V F CORP 923,437.50
32,900 VENATOR GROUP INC 211,793.75
BROADCASTING
13,659 DISNEY WALT CO 409,770.00
10,100 KING WORLD INC 297,318.75
MISCELLANEOUS
23,900 PALL CORP 604,968.75
62,000 RJR NABISCO HLDGS CORP 1,840,625.00
TOTAL CONSUMER PRODUCTS $39,977,206.32
DURABLE GOODS 29.73%
AEROSPACE-AIRCRAFT
11,444 BOEING CO 373,360.50
18,600 GENERAL DYNAMICS CORP 1,090,425.00
7,861 LOCKHEED MARTIN CORP 666,219.75
10,700 NORTHROP GRUMMAN CORP 782,437.50
100 TEXTRON INC 7,593.75
700 UNITED TECHNOLOGIES CORP 76,125.00
AGRICULTURAL MACHINERY
1,100 CATERPILLAR INC 50,600.00
2,400 DEERE & CO 79,500.00
AUTOMOBILE AND PARTS
9,000 AUTOZONE INC 296,437.50
4,600 CUMMINS ENGINE INC 163,300.00
13,700 DANA CORP 559,987.50
53,800 FORD MTR CO 3,157,387.50
4,600 GENERAL MTRS CORP 329,187.50
6,850 GENUINE PARTS CO 229,046.88
5,900 TENNECO INC (NEW) 200,968.75
200 TRW INC 11,237.50
ELECTRICAL
1,500 EMERSON ELEC CO 90,750.00
2,000 HONEYWELL INC 150,625.00
14,200 RAYCHEM CORP 458,837.50
ELECTRONICS
13,400 ADVANCED MICRO-DEVICES 387,762.50
36,200 APPLIED MATLS INC 1,545,287.50
10,725 CISCO SYS INC 995,414.06
75,600 GENERAL ELECTRIC CO 7,715,925.00
28,200 GENERAL INSTRUMENT CORP 957,037.50
6,200 HEWLETT PACKARD CO 423,537.50
500 KLA-TENCOR CORPORATION 21,687.50
51,300 LSI LOGIC CORP 827,212.50
35,900 MICRON TECH 1,815,193.75
13,200 NATIONAL SEMICONDUCTOR 178,200.00
900 NATIONAL SVC INDS 34,200.00
140,275 ORACLE CORPORATION 6,049,359.38
6,500 PERKIN ELMER CORP 634,156.25
3,900 SEAGATE TECHNOLOGY INC 117,975.00
3,950 TEKTRONIX INC 118,746.88
33,600 TEXAS INSTRUMENTS 2,874,900.00
6,500 THOMAS & BETTS CORP 281,531.25
INDUSTRIAL MACHINERY
3,400 BRIGGS & STRATTON CORP 169,575.00
23,600 CASE CORPORATION 514,775.00
900 COOPER INDUS INC 42,918.75
32,700 DOVER CORP 1,197,637.50
1,400 HARNISCHFEGER INDUS INC 14,262.50
3,950 INGERSOLL RAND CO 185,403.13
6,600 MILACRON 127,050.00
1,200 NACCO INDUS INC CL A 110,400.00
3,300 ROCKWELL INTL CORP W/I 160,256.25
OFFICE EQUIPMENT AND SUPPLIES
5,900 IKON OFFICE SOLUTIONS 50,518.75
4,400 XEROX CORP. 519,200.00
RUBBER
9,400 GOODRICH B F CO 337,225.00
1,600 GOODYEAR TIRE & RUBBER 80,700.00
OTHER DURABLE GOODS
12,400 CORNING INCORPORATED 558,000.00
7,050 CRANE CO 212,821.88
34,000 ILLINOIS TOOL WORKS 1,972,000.00
1,000 MILLIPORE CORP 28,437.50
5,300 MINNESOTA MNG & MFR 376,962.50
COMPUTERS AND SOFTWARE
15,000 CERIDIAN CORP 1,047,187.50
26,625 COMPAQ COMPUTER CORP 1,116,585.94
71,137 COMPUTER ASSOC INTL INC 3,032,214.63
2,600 DATA GENL CORP 42,737.50
132,600 DELL COMPUTER CORP 9,704,662.50
7,500 ELECTRONIC DATA SYSTEMS 376,875.00
26,500 GATEWAY 2000 1,356,468.75
12,700 HBO AND CO 364,331.25
236,900 MICROSOFT CORP 32,855,068.75
3,200 NOVELL INC 58,000.00
2,500 PARAMETRIC TECNOLOGY 40,937.50
25,200 SILICON GRAPHICS 324,450.00
33,900 SUN MICROSYSTEMS 2,902,687.50
8,400 UNISYS CORP 289,275.00
HOUSEHOLD FURN/APPLIANCES
11,100 WHIRLPOOL CORP 614,662.50
TELECOMMUNICATIONS
77,000 AIRTOUCH COMMUNICATIONS 5,553,625.00
662 ANDREW CORP 10,923.00
17,100 ASCEND COMMUNICATIONS 1,124,325.00
6,200 CLEAR CHANNEL COMMUNICATI 337,900.00
50,988 LUCENT TECHNOLOGIES INC 5,608,680.00
13,200 MEDIAONE GROUP INC (NEW) 620,400.00
7,850 SPRINT CORP PCS GROUP 181,531.25
MISCELLANEOUS
4,600 ALLIED-SIGNAL INC 203,837.50
5,400 BLACK & DECKER CORP 302,737.50
5,900 ITT INDUSTRIES INC 234,525.00
10,200 JOHNSON CTLS INC 601,800.00
9,775 PARKER HANNIFIN CORP 320,131.25
9,550 SNAP ON TOOLS CORP 332,459.38
24,500 THERMO ELECTRON CORP 414,968.75
TOTAL DURABLE GOODS $110,384,285.41
FINANCIAL 12.35%
BANKS
17,600 BANK NEW YORK INC 708,400.00
2,200 BB&T CORP 88,687.50
2,924 CHASE MANHATTAN CORP NEW 199,014.75
80,325 FIFTH THIRD BANCORP COM 5,728,176.56
32,932 FIRST UNION CORP 2,002,677.25
10,566 FLEET FINANCIAL GROUP INC 472,168.13
1,000 KEYCORP NEW 32,000.00
9,045 MBNA CORP 225,559.69
6,500 MELLON BANK CORP 446,875.00
26,000 MERCANTILE BANCORP INC 1,199,250.00
16,500 NATIONAL CITY CORP 1,196,250.00
21,000 NORTHERN TRUST CO 1,833,562.50
7,200 PNC FINANCIAL 389,700.00
1,000 REGIONS FINANCIAL CORP 40,312.50
26,800 SUMMIT BANCORP 1,170,825.00
5,100 SUNTRUST BANKS INC 390,150.00
115,282 U.S. BANCORP 4,092,511.00
2,400 WACHOVIA CORP 209,850.00
18,400 WELLS FARGO COMPANY NEW 734,850.00
FINANCE COMPANIES
700 AMERICAN EXPRESS CO 71,575.00
36,880 ASSOCIATES 1ST CAPITAL A 1,562,790.00
30,772 HOUSEHOLD INTL CORP 1,219,340.50
HOLDING COMPANY
9,425 BANK ONE CORP 481,264.06
40,385 BANKAMERICA CORP NEW 2,428,148.13
24,541 CITIGROUP INC 1,214,779.50
2,700 EASTERN ENTERPRISES 118,125.00
40,470 MS, DW, DISCOVER & CO 2,873,370.00
FIRE AND CASUALTY INSURANCE
700 CHUBB CORP 45,412.50
200 SAFECO CORP 8,587.50
INSURANCE
15,300 AETNA INC 1,202,962.50
26,437 AMERICAN INTL GROUP 2,554,475.13
28,600 AON CORP 1,583,725.00
1,200 CIGNA CORP 92,775.00
15,300 CINCINNATI FINANCIAL CORP 560,362.50
65,458 CONSECO INC 2,000,560.13
1,000 HARTFORD FINANCIAL SVCS 54,875.00
10,600 MBIA INC 694,962.50
2,370 ST PAUL COS INC 82,357.50
3,500 UNUM CORP. 204,312.50
LIFE INSURANCE
8,487 AMERICAN GENERAL CORP 661,986.00
18,000 JEFFERSON PILOT CORP 1,350,000.00
4,500 LINCOLN NATL CORP IND 368,156.25
REAL ESTATE
300 FEDERAL NATL MTGE ASSN 22,200.00
SAVINGS & LOANS
5,600 GOLDEN WEST FINL CORP 513,450.00
BROKERAGE
10,000 BEAR STEARNS COS INC 373,750.00
32,400 FRANKLIN RESOURCES 1,036,800.00
22,500 LEHMAN BROS HLDGS INC 991,406.25
2,400 MERRILL LYNCH & CO 160,200.00
MISCELLANEOUS
3,955 WASHINGTON MUTUAL 151,031.56
TOTAL FINANCIAL $45,844,559.89
METALS AND MINING 1.01%
ALUMINUM
1,200 ALUMINUM CO AMER 89,475.00
10,100 REYNOLDS METALS CO 532,143.75
MINING
46,600 HOMESTAKE MNG CO 428,137.50
STEEL
21,367 ALLEGHENY TELEDYNE 436,688.06
7,800 BETHLEHEM STEEL CORP 65,325.00
23,400 NUCOR CORP 1,012,050.00
6,300 TIMKEN CO 118,912.50
2,000 USX-US STEEL GROUP 46,000.00
2,300 WORTHINGTON INDS INC 28,750.00
OTHER METALS
7,900 ASARCO INC 118,993.75
17,787 NEWMONT MNG CORP 321,277.69
8,900 PHELPS DODGE CORP 452,787.50
MINERALS
10,750 CYPRUS AMAX MINERALS CO 107,500.00
TOTAL METALS AND MINING $3,758,040.75
COLLECTIBLES & PRECIOUS MATERIALS 0.08%
GOLD-DIAMOND-GEMS
28,800 FREEPORT-MCMORAN COPPER-B 300,600.00
TOTAL COLLECTIBLES & PRECIOUS MATERIALS $300,600.00
OIL-ENERGY 2.83%
OIL & GAS PRODUCERS
1,700 AMERADA HESS CORP 84,575.00
9,500 AMOCO CORP 560,500.00
1,300 APACHE CORP 32,906.25
26,800 COASTAL CORP 936,325.00
6,100 HELMERICH & PAYNE INC. 118,187.50
8,500 OCCIDENTAL PETROLEUM 143,437.50
8,400 ROWAN COS INC 84,000.00
14,500 SUNOCO INC 522,906.25
26,487 UNION PACIFIC RESOURCES 240,038.44
NATURAL RESOURCES
5,400 KERR MCGEE CORP 206,550.00
25,800 WILLIAMS COS INC-DEL 804,637.50
OIL EQUIPMENT, WELLS & SVCS
9,000 ASHLAND, INC 435,375.00
16,740 BAKER HUGHES INC 296,088.75
32,400 HALLIBURTON CO 959,850.00
OIL - DOMESTIC
2,412 BURLINGTON RESOURCES INC 86,379.75
8,600 PHILLIPS PETE CO 366,575.00
1,900 UNOCAL CORP 55,456.25
OIL - INTERNATIONAL
1,800 CHEVRON CORP 149,287.50
34,100 EXXON CORP. 2,493,562.50
13,200 MOBIL CORP 1,150,050.00
8,300 ORYX ENERGY COMPANY 111,531.25
12,700 TEXACO INC 671,512.50
TOTAL OIL-ENERGY $10,509,731.94
RETAIL 10.21%
DEPARTMENT STORES
12,500 CVS CORP 687,500.00
25,800 DAYTON HUDSON CORP 1,399,650.00
20,900 DILLARDS INCORPORATED 593,037.50
11,400 HARCOURT GENERAL INC 606,337.50
38,500 K MART 589,531.25
14,200 PENNEY JC INC 665,625.00
40,000 SAFEWAY INC 2,437,500.00
4,000 SEARS ROEBUCK & CO 170,000.00
146,100 WAL MART STORES INC 11,898,018.75
GROCERY
900 ALBERTSON'S INC 57,318.75
4,300 GREAT ATLANTIC & PAC TEA 127,387.50
42,700 KROGER CO 2,583,350.00
OTHER RETAIL
20,800 CONSOLIDATED STORES INC 419,900.00
8,567 COSTCO COMPANIES INC 618,430.31
6,100 LONGS DRUG STORES CORP 228,750.00
68,800 LOWES COS INC 3,521,700.00
17,800 PEP BOYS-MAN, MO, JACK 279,237.50
5,200 RITE AID CORP 257,725.00
SPORTING GOODS
5,500 RUSSELL CORP 111,718.75
APPAREL
110,400 GAP INC 6,210,000.00
25,600 NORDSTROM INC 888,000.00
MISCELLANEOUS
47,199 TYCO INTERNATIONAL LTD 3,560,574.56
TOTAL RETAIL $37,911,292.37
UTILITIES 8.50%
ELECTRIC
5,200 AMEREN CORP 221,975.00
1,500 AMERICAN ELEC PWR INC 70,593.75
4,600 BALTIMORE GAS & ELEC 142,025.00
400 CENTRAL & SOUTH WEST CORP 10,975.00
7,621 CINERGY CORP 261,971.88
2,800 DOMINION RES INC-VA 130,900.00
1,400 DTE ENERGY COMPANY 60,025.00
6,309 DUKE POWER CO 404,170.31
800 ENTERGY CORP NEW 24,900.00
4,400 FPL GROUP INC 271,150.00
5,300 GPU INC 234,193.75
4,245 HOUSTON INDS INC 136,370.63
900 NIAGARA MOHAWK PWR 14,512.50
2,800 NORTHERN STS PWR CO 77,700.00
10,400 PACIFICORP 219,050.00
5,100 PECO ENERGY 212,287.50
37,000 PG&E CORP 1,165,500.00
35,900 PP&L RESOURCES INC 1,000,712.50
22,674 SBC COMMUNICATIONS INC 1,215,893.25
7,100 SOUTHERN CO 206,343.75
700 UNICOM CORP 26,993.75
GAS
1,800 COLUMBIA GAS SYS INC 103,950.00
10,500 ENRON CORP 599,156.25
19,800 SONAT INC 535,837.50
7,190 TEXAS UTILITIES CO 335,683.13
TELEPHONE
65,700 A T & T 4,943,925.00
19,500 ALLTEL CORP 1,166,343.75
2,590 BELL ATLANTIC CORP 137,270.00
18,800 BELLSOUTH CORP 937,650.00
13,800 FRONTIER CORP 469,200.00
32,300 GTE CORP 2,099,500.00
147,390 MCI WORLDCOM INC 10,575,232.50
15,700 SPRINT CORP 1,320,762.50
3,860 US WEST INC (NEW) 249,452.50
WASTE DESPOSAL
4,400 BROWNING FERRIS IND 125,125.00
30,595 WASTE MANAGEMENT INC 1,426,491.88
MISCELLANEOUS
16,391 SEMPRA ENERGY 415,921.63
TOTAL UTILITIES $31,549,745.21
MISCELLANEOUS 13.76%
BROADCAST/COMMUNICATIONS
31,100 CBS CORP 1,018,525.00
28,400 COMCAST CORP CL A SPL 1,666,725.00
200 GANNETT CO., INC 12,900.00
9,100 MOTOROLA INC 555,668.75
46,330 TELE COMM. INC CL A 2,562,628.13
77,800 VIACOM INC CL B NON VTG 5,757,200.00
BUSINESS SERVICES
14,100 AUTODESK INC 601,893.75
3,700 AUTOMATIC DATA PROC 296,693.75
25,100 BLOCK H&R INC 1,129,500.00
13,018 CENDANT CORP 248,155.63
31,500 DONNELLEY RR & SONS 1,380,093.75
17,100 DOW JONES & CO 822,937.50
128,000 E M C CORP 10,880,000.00
77,400 FIRST DATA CORP 2,452,612.50
15,200 GRAINGER W W INC 632,700.00
19,250 INTERPUBLIC GROUP COS 1,535,187.50
16,500 OMNICOM GROUP INC 957,000.00
17,700 SCIENTIFIC-ATLANTA 403,781.25
35,700 SERVICE CORP INTL 1,358,831.25
61,900 THREE COM CORP 2,773,893.75
FOOD SERVICE
1,900 MCDONALDS CORP 145,587.50
56,300 PHILLIP MORRIS CO INC 3,012,050.00
1,790 TRICON GLOBAL RESTAURANTS 89,723.75
25,300 WENDYS INTL INC 551,856.25
HOTEL & MOTEL
26,700 HILTON HOTELS CORP 510,637.50
26,700 MARRIOTT INTL CL A 774,300.00
HOUSING
7,000 PULTE CORP 194,687.50
MED SERV & SUPPLIES
1,800 BIOMET INC 72,450.00
30,600 HEALTHSOUTH CORPORATION 472,387.50
34,400 HUMANA INC 612,750.00
8,600 MEDTRONIC INC 638,550.00
3,300 SHARED MEDICAL SYS CORP 164,587.50
12,650 ST. JUDE MED INC. 350,246.88
REAL ESTATE
9,700 CENTEX CORP 437,106.25
TRANSPORTATION
8,562 BURLINGTON NRTHN SANTA FE 288,967.50
300 CSX CORP 12,450.00
25,000 DELTA AIR LINES INC 1,300,000.00
16,940 FDX CORP 1,507,660.00
2,900 FLEETWOOD ENTERPRISES 100,775.00
11,900 NORFOLK SOUTHERN CORP 377,081.25
1,390 PACCAR INC 57,163.75
9,500 RYDER SYSTEMS INC 247,000.00
11,100 SOUTHWEST AIRLINES CO 249,056.25
3,500 U S AIR GROUP 182,000.00
3,700 UNION PACIFIC CORP 166,731.25
MISCELLANEOUS
1,300 MALLINCKRODT (NEW) 40,056.25
8,300 WARNER-LAMBERT 624,056.25
TELECOMMUNICATIONS
5,700 AMERITECH CORP NEW 361,237.50
13,400 HARRIS CORP-DEL 490,775.00
TOTAL MISCELLANEOUS $51,078,858.14
TOTAL COMMON STOCK $369,916,933.78
OTHER
0.36%
CASH EQUIVALENTS
1,337,069 AIM SHORT TERM INV SER 2 1,337,068.95
TOTAL $1,337,068.95
TOTAL OTHER $1,337,068.95
TOTAL INVESTMENTS - 100.00% $371,254,002.73
(cost $161,464,999)
See accompanying notes
