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Previous: BERMAN LYLE, SC 13D, 2000-02-18 |
Next: EVANS SYSTEMS INC, 8-K, 2000-02-18 |
<PAGE>
---------------------------------------
Quarterly Report
December 31, 1999
Legg Mason
Investors
Trust, Inc.
American Leading
Companies Trust
Balanced Trust
U.S. Small-Cap
Value Trust
Primary Class
---------------------------------------
[Legg Mason Funds Logo]
The Art of Investing/SM/
---------------------------------------
Investment Manager
Legg Mason Fund Adviser, Inc.
Baltimore, MD
Investment Advisers
For American Leading Companies Trust:
Legg Mason Fund Adviser, Inc.
Baltimore, MD
For Balanced Trust:
Bartlett & Co.
Cincinnati, OH
For U.S. Small-Cap Value Trust:
Brandywine Asset Management,Inc.
Wilmington, DE
Board of Directors
John F. Curley, Jr., Chairman
Edward A. Taber, III, President
Richard G. Gilmore
Arnold L. Lehman
Dr. Jill E. McGovern
G. Peter O'Brien
T. A. Rodgers
Transfer and Shareholder Servicing Agent
Boston Financial Data Services
Boston, MA
Custodian
State Street Bank & Trust Company
Boston, MA
Counsel
Kirkpatrick & Lockhart LLP
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Philadelphia, PA
This report is not to be distributed unless preceded or
accompanied by a prospectus.
Legg Mason Wood Walker, Incorporated
- ------------------------------------------
100 Light Street
P.O. Box 1476, Baltimore, MD 21203-1476
410 . 539 . 0000
LMF-013
2/00
<PAGE>
To Our Shareholders,
We are pleased to provide you with Legg Mason Investors Trust's quarterly
report for the American Leading Companies Trust, the Balanced Trust and the U.S.
Small-Cap Value Trust.
The following table summarizes key statistics for the Primary Class of
shares of each Fund, as of December 31, 1999:
<TABLE>
<CAPTION>
3-Month 12-Month
Total Return/1/ Total Return/1/
--------------- ---------------
<S> <C> <C>
American Leading Companies Trust +8.20% +5.25%
Balanced Trust +4.01% -1.37%
U.S. Small-Cap Value Trust -1.78% -5.00%
S&P 500 Stock Composite Index +14.88% +21.04%
Lipper Balanced Fund Index/2/ +7.08% +8.98%
Russell 2000 Index +18.44% +21.26%
</TABLE>
On the following pages, the portfolio managers for each of the Funds discuss
the investment outlook for the Funds. Long-term investment results for each of
the Funds are shown in the "Performance Information" section of this report.
We are pleased to report that Legg Mason has made a seamless transition into
the new century. Our critical internal and external systems are operating free
of Y2K disruptions. Internal and external operations, including the Fund's
custodian and transfer agency, are running smoothly, and Fund shareholders are
receiving uninterrupted account maintenance and transaction support.
The Board of Directors recently approved an ordinary income dividend of
$0.10 per shareholder of Balanced Trust, payable on December 31, 1999, to
shareholders of record on December 1, 1999.
We hope you will consider using the Trust for investments of additional
funds as they become available. Some shareholders regularly add to their
investment in the Funds by authorizing automatic, monthly transfers from their
bank checking or Legg Mason accounts. Your Financial Advisor will be happy to
help you make these arrangements if you would like to purchase additional shares
in this convenient manner.
Sincerely,
/s/ Edward A. Taber, III
------------------------
Edward A. Taber, III
President
January 28, 2000
- --------------
/1/ Total return measures investment performance in terms of appreciation or
depreciation in net asset value per share plus dividends and any capital
gain distributions. It assumes that dividends and distributions were
reinvested at the time they were paid.
/2/ The Lipper Balanced Fund Index is composed of approximately 30 funds whose
primary objective is to conserve principal by maintaining a balanced
portfolio of stocks and bonds with stock/bond ratio ranges of approximately
60%/40%.
<PAGE>
Portfolio Managers' Comments
American Leading Companies Trust
Market Commentary
A number of recent publications, including the January 18, 2000 issue of the
Wall Street Journal, have raised the question of whether the current surge in
stock prices is being driven by a productivity boom or a speculative bubble. Fed
Chairman Alan Greenspan himself raised the issue in remarks before the Economic
Club of New York, on January 13/th/. He said:
"When we look back at the 1990s, from the perspective of, say, 2010, the
nature of the forces currently in train will have presumably become clearer.
We may conceivably conclude from that vantage point that, at the turn of the
millennium, the American economy was experiencing a once-in-century
acceleration of innovation, which propelled forward productivity, output,
corporate profits, and stock prices at a pace not seen in generations, if
ever.
Alternatively, that 2010 retrospective might well conclude that a good
deal of what we are currently experiencing was just one of the many euphoric
speculative bubbles that have dotted human history. And, of course, we cannot
rule out that we may look back and conclude that elements from both scenarios
have been in play in recent years."
As Chairman Greenspan's comments imply, the question of boom versus bubble is
not necessarily either/or. There appear to be elements of both at work.
Unfortunately, we, as investors, do not have the luxury of waiting until 2010 to
decide how to position portfolios today. We can only evaluate the available
evidence and give it our best shot.
The fundamental underpinnings of the market advance in recent years are
undeniable. As noted by Chairman Greenspan, we are within weeks of establishing
a record for the longest economic expansion in U.S. history, eclipsing the 106-
month expansion of the 1960s. Nonetheless, "there remain few evident signs of
geriatric strain that typically presage an imminent economic downturn." Not only
is the expansion reaching record length, but it is doing so with stronger than
expected growth, and subdued levels of inflation in the face of labor markets
tighter than any we have seen in a generation. These unusual, and highly
favorable, economic circumstances are being widely attributed to advances in
information and communications technology, which are spurring productivity and
economic growth while at the same time reducing costs and making it difficult
for many industries to raise prices.
Growing recognition of technology's central role in the strength and longevity
of the expansion has led to a bifurcation in stock valuations as large as any I
have witnessed in my 24 years in the investment business. Stocks perceived as
leading the technological and communications revolution are priced at one level,
and virtually everything else in the market is priced at another (much lower)
level. According to the Wall Street Journal (January 18, 2000), the technology
sector, which now comprises over 30% of the market value of the S&P 500, trades
at nearly 69 times trailing twelve month earnings, while the financial sector,
which generates 75% more profits, trades at 16.4 times trailing earnings. As
reported by DLJ market strategist Tom Galvin, the technology sector advanced
74.8% in 1999, thereby accounting for between 85% and 90% of the return of the
S&P 500 last year. Outside tech and telecom, returns were minimal or negative.
The capitalization-weighted S&P 500 was up about 20% in 1999, before dividends,
but 256 stocks in the index actually declined in value, the median stock was
down 1.4%, and 348 of the component stocks (70%) underperformed the index
return. The last time losers outnumbered gainers in the S&P 500 was 1994 -- when
the index declined 1.5%.
2
<PAGE>
The market environment in 1999 was clearly a case of haves and have nots.
Portfolios overweighted in technology generally did well, while those that were
underweighted in tech struggled. The environment was also unusual in the extent
to which it rewarded aggressive strategies and punished conservative strategies.
As an example, the 95 stocks in the S&P 500 that pay no dividends were up an
average of 90.2% in 1999. The 405 stocks that pay dividends were up 2.2% on
average. The 144 companies in the S&P 500 with a yield of 0.5% or less were up
74% on average, while those companies with a yield of more than 0.5% were down
3.4%. Of the 15 best performing stocks in the S&P 500 for 1999, one paid a
dividend. Of the best performing 25 stocks, 3 paid dividends (none of which were
significant). The only way to make more money than by buying stocks with no
dividends was to buy stocks with no earnings as well. According to Merrill Lynch
market strategist Bob Farrell, from June 1999 through year end, stocks selling
for more than $10 with no earnings were up an average of 115%, while those with
earnings were up 14%.
In summary, the winning strategy last year was to own high P/E, non-dividend-
paying technology stocks. The only thing that worked better than that was to own
no-P/E Internet IPOs, which regularly popped 300% to 400% on their opening trade
and went up from there. In my opinion (and of course, I could be wrong), the
Internet IPO frenzy that we saw in the fourth quarter of 1999 was the modern day
equivalent of tulip bulb mania.
Investment Results
Results for the American Leading Companies Trust for the three-month, one-
year, three-year and five-year periods ended December 31, 1999, are listed
below, along with those of some representative benchmarks:
<TABLE>
<CAPTION>
Cumulative Returns
Three --------------------------------------------
Months One Year Three Year Five Year
------ -------- ------------------ ---------
<S> <C> <C> <C> <C>
American Leading Companies +8.20% +5.25% +58.02% +149.38%
S&P 500 Composite Index +14.88% +21.04% +107.52% +251.12%
Lipper Large Cap Core Funds +16.86% +22.35% +94.94% +213.20%
Dow Jones Industrial Average +11.66% +27.29% +87.78% +231.65%
</TABLE>
The Fund again had a poor quarter, significantly trailing the S&P 500, the
Lipper Large-Cap Core Funds Index and the Dow Industrials for the three months.
Year-to-date, one-year, three-year and five-year comparisons were also
unfavorable.
As in the September quarter, an underweighting in the technology sector (which
we regard as expensive) and an overweighted position in financials (which we
regard as very attractively priced) hurt performance in the latest three months.
Positive contributors to performance included: Gateway, Amgen, Wal-Mart Stores,
America Online, Koninklijke Philips Electronics, Avon Products, General
Electric, Microsoft, Citigroup and MGIC Investment Corporation. Laggards
included: Mattel, McKesson, Burlington Northern, Washington Mutual, IBM, Waste
Management, Bank of America, Bank One, Conseco and Sara Lee Corporation.
3
<PAGE>
Portfolio Managers' Comments -- Continued
American Leading Companies Trust -- Continued
A complete listing of new purchases and stocks eliminated from the portfolio
is presented in another section of this report. In general, the strategy for the
quarter was to prudently increase exposure to the technology and
telecommunications sectors, while being sensitive to the prices paid.
Outlook
We are reasonably sanguine about the economic outlook for 2000. We see no
imbalances in the real economy which would derail the expansion, therefore we
expect continued moderate growth of 3% or so in real U.S. GDP, with somewhat
faster growth in the first half of the year, and an interest-rate-induced
slowdown in the second half. Overall we think corporate profits could advance
about 8% to 10%. The inflation rate could rise modestly, but should remain in
the range of 3%.
As far as the stock market is concerned, we think the key is interest rates.
We expect another 50 to 75 basis points/1/ of tightening by the Federal Reserve.
If more tightening than that is necessary to slow the economy and if long rates
continue to push higher, we think the market is vulnerable. If long rates
stabilize around current levels, we think the equity market could have a
reasonably good year.
In either event, we think it unlikely that investors will continue to focus on
technology stocks, to the exclusion of all else. Thus, we expect to see a
broadening of the market in the coming year.
Before closing, I am pleased to announce that Jay Leopold has been promoted to
assistant manager of American Leading Companies Trust. Jay, a vice president, is
a 14-year veteran of Legg Mason, having previously worked as an analyst in the
research department, and since 1995 as a senior analyst in the funds management
area. I welcome Jay's help and look forward to working with him.
As always, we welcome your comments or questions.
David E. Nelson, CFA
January 18, 2000
DJIA 11560.72
- -----------
/1/ 100 basis points = 1%.
4
<PAGE>
Portfolio Managers' Comments
Balanced Trust
Equity
The stock market averages ended the year at record high levels following a
fourth quarter rally. Thus, the twentieth century ended with five consecutive
years of 20% or greater market appreciation as measured by the Standard & Poor's
500 Index (S&P 500). The venerable Dow Jones Industrial Average tripled during
this remarkable five-year stretch, rising from 3,800 to 11,500! Unfortunately,
we failed to keep pace with the popular market indices during the past year as
the gap in performance between growth and value stocks continued at
unprecedented levels. The Fund's total returns for the quarter and the year
ended December 31, 1999, of +4.01% and -1.37%, respectively, lagged the Lipper
Balanced Fund Index/1/ returns of +7.08% and +8.98%, respectively.
While results of the major averages suggest another bullish year, the
statistics are misleading. Most stocks actually declined in 1999. As reported by
The New York Times, nearly two-thirds of stocks listed on the NYSE and NASDAQ
composites finished the year down 20% from their peak prices. The reported
market gains were driven by relatively few stocks, with technology companies and
a few blue chips in the vanguard. In fact, the largest fifty companies in the
S&P 500 had an average return of 106% while the smallest 200 averaged a loss of
5%. Meanwhile, rising interest rates pressured bond prices, which caused the
performance of long-maturity Treasury bonds to suffer their second worst annual
return since 1973.
We continue to maintain the same investment discipline as we have since the
Fund's inception. As you know, we like to purchase good companies at attractive
prices, usually buying when we feel industry conditions are difficult or when
fine companies are experiencing temporary problems. We make decisions after
careful analysis and assessment of a company's intrinsic value. Recently, we
have purchased IBM, MCI WorldCom and Johnson & Johnson because we believe their
solid growth prospects can be acquired at a reasonable multiple of earnings.
While the projected and historical growth rate of stocks in our portfolios is
slightly below the market (S&P 500), the price/earnings ratio of these same
companies is about one-third lower. Once a position in a company is established,
our strategy is to wait for the market to recognize the gap between current
market price and our estimate of its intrinsic value. Assuming the gap between
market price and intrinsic value closes, stock positions are reduced and
eventually eliminated from the portfolio, to be replaced by better values. This
focus on value can lead to portfolios significantly different from the major
indices. Our goal is to stay focused on our investment discipline -- not to
replicate or shadow the index. This approach, which we believe to be potentially
rewarding from a risk and return standpoint over the long term, can produce
portfolio composition and results that are very different from the indices over
shorter periods of time. This past calendar year was an example of how our
short-term results can vary from the market. Currently we find compelling
values, and consequently overweightings, in financial services, consumer staples
and transportation. Examples include Citigroup, Charter One Financial, Fannie
Mae, Ford, Union Pacific, and Anheuser-Busch.
One of our major industry underweightings over the past few years has been
technology, and this report would be deficient without addressing this sector.
As of year end our approximate technology
- ---------------
/1/ The Lipper Balanced Fund Index is composed of approximately 30 funds whose
primary objective is to conserve principal by maintaining a balanced
portfolio of stocks and bonds with stock/bond ratio ranges of approximately
60%/40%.
5
<PAGE>
Portfolio Managers' Comments -- Continued
American Leading Companies Trust -- Continued
weighting was 11%, versus 28% of the S&P 500. This sector difference accounts
for a substantial part of our performance shortfall, given the fact that most of
the popular market indices have been largely influenced by a handful of strong
performing technology stocks. Our technology weighting is low by design because
when we buy companies we must feel secure in the knowledge that long-term growth
of revenues, earnings and cash flow will propel increasing valuations. We quite
frankly fail to understand how anyone could feel "secure" buying into relatively
unproven companies with little or no revenues, earnings or cash flow. As with
prior periods of speculation -- the "Nifty-Fifty" period of the early '70s,
energy stocks in the late '70s, or the biotech frenzy in the early '80s -- we
think the safest place is the sidelines. However, we do strongly believe in the
transforming power of technology and have long-term investments in fine
companies that we believe will continue to flourish. We simply believe that
business performance and stock valuation have to be reasonable.
Fixed Income
For the quarter ended December 31, 1999, interest rates continued trending
higher, with most maturities experiencing yield increases of 50 basis points/2/
or more during this period. The way that I would characterize 1999 is "what if
they gave a bond bear market and nobody showed up?" In other words, with most
investors riveted on the stratospheric returns that Internet stocks were
producing, the significant bond bear market of 1999 received very little ink in
the press.
We believe that last year's bear market has created one of the most compelling
opportunities in fixed income securities that we have seen in quite some time.
Indeed, the losses generated by long-term Treasury bonds in 1999 were even worse
than the losses produced in 1994, which was a bear market that received far more
attention. We believe that Treasury securities are extremely cheap at current
levels, and the fundamentals have never looked better to us. We are incredulous
that when the U.S. Treasury announced its intention to buy back $30 billion of
U.S. government debt via open market purchases that this bullish news failed to
produce even a minor upward blip in the bond market. The shrinking supply of
U.S. Treasury securities coupled with an anticipated future increase in demand,
in our eyes, has presented an extremely compelling investment opportunity.
Accordingly, we are continuing to add to our Treasury STRIP positions and have
begun purchasing 20-year Treasury coupons.
There continues to be indifference, at best, in the bond market and fear of
renewed inflation, at worst, which is driving investor avoidance of Treasury
bonds. While it is true that there is evidence of potential future inflationary
pressure in the labor market as well as in the commodities market, coupled with
a global expansion which shows no signs of letting up, we believe that the
business revolution that the Internet and technology in general is producing is
leading to a lack of pricing power in most, if not all, industries. This will
result in a significant disinflationary bias. If there is a "bond boogieman" out
there, he must be in our blind spot. In fact, we believe it is very likely that
the next 12 to 18 months could produce a significant bond rally.
- -------------
/2/ 100 basis points = 1%.
6
<PAGE>
We are pleased to report that mortgages, which were a major emphasis of the
Fund this year, was the best performing sector in 1999. As spreads have
tightened, we have continued to take money off the table in this sector, re-
deploying these funds into additional Treasuries and corporate bonds. Contrary
to most investors, we believe that the year 2000 will be the year of the
Treasury security. As mentioned in last quarter's report, we are expecting at
least one additional tightening sometime in the first quarter of 2000 with
another possibly to follow shortly thereafter. We would point out that this bear
market is already 16 months old which, other than the bond market debacle of
1979-1981, is as long or longer than the three other bear markets we have had in
the past twenty years. Bonds have been the Rodney Dangerfield asset class for so
long that we almost cannot remember when they were accorded some respect. We
sense that this is about to reverse this year. Only time will tell.
We certainly appreciate your trust and will work hard to merit your continued
confidence.
Woodrow H. Uible, CFA Dale H. Rabiner, CFA
Equity Portfolio Manager Fixed Income Portfolio Manager
January 21, 2000
DJIA 11251.70
7
<PAGE>
Portfolio Manager's Comments
U.S. Small-Capitalization Value Trust
For the quarter, the portfolio returned -1.8%, compared to gains of +1.5% for
the Russell 2000 Value, +18.4% for the Russell 2000 and +14.9% for the S&P 500.
For 1999, the portfolio was off -5.0%, compared to returns of -1.5% for the
Russell 2000 Value, +21.3% for the Russell 2000 and +21.0% for the S&P 500.
In the fourth quarter, the U.S. equity markets surged higher, led by
extraordinary returns in the technology sector. Interest rates continued to
rise, with the U.S. long bond approaching a yield of +6.5%, up from +5.0% as the
year started. Despite this rate increase, strong consumer confidence and
investor optimism about technology spending, particularly on Internet
infrastructure, drove market indices to new highs. The market's breadth was very
weak; although the Russell 2000 climbed +21.3% for the year, less than half the
stocks in the index (as of January 1, 1999) had positive returns. Market
strength was concentrated in growth stocks, and value lagged due to investor
disinterest. This market environment can also be distinguished by its
volatility. The impact of this volatility was seen in the second quarter, when
our small-cap stocks soared by over 20%, only to give most, if not all, of that
back in the third and fourth quarters. We think such surges are likely in the
future and we are confident that our stocks have the fundamental strength to
consolidate such future surges.
For the fourth quarter and the year, the technology sector accounted for most
of the portfolio's under-performance versus most benchmarks. Our disciplined
value approach has kept our portfolios under-weighted in technology stocks given
their steep current valuations, yet investors have had a nearly insatiable
appetite for these stocks. Rapid developments in the Internet and related
communication industries have attracted investors who often have little apparent
regard for reasonable fundamental expectations. As a result, prices and
valuations in this sector have skyrocketed at an unprecedented pace. Even when a
group's stock momentum slows due to a realization that valuations have exceeded
the fundamentals, as with Internet retailers in December, another technology
sector becomes hot, such as business-to-business Internet, semiconductors and
Linux stocks of late. Without the strong return from its approximate 20%
weighting in technology, the Russell 2000's 21.3% actual return for the year
would have fallen to just 3.6%! The portfolio's health care investments were the
other major source of poor relative performance versus the benchmarks. Although
we had only a small weighting in hospitals, HMOs, nursing homes and
rehabilitation centers, the stocks have dropped very dramatically due to radical
changes in Medicare reimbursement. These stocks rallied late in the quarter as
Congress passed helpful regulatory changes.
For the quarter, the portfolio's low weighting in financial stocks,
particularly the banks, was the biggest positive contributor to relative
performance. Rising interest rates drove down stocks in this group, which had
been priced at expensive valuations. For the year, the oil services area was
among the portfolio's best performing sectors and the strongest contributor to
performance. When oil prices fell to $12/barrel late last year, these stocks
also fell to very low valuations and we raised our holdings in the group. As oil
prices rose, these stocks rallied dramatically. The retail and consumer product
sectors also provided a positive contribution to the portfolio as strong
consumer spending helped these stocks. Despite investor concerns about the
economy's sustainability, continued economic growth also helped our significant
cyclical holdings in trucking, steels, chemicals and textiles.
Small-cap value stocks continue to be valued at significant discounts to the
rest of the U.S. equity market. The valuation spread between small-cap value and
growth as well as small and large stocks
8
<PAGE>
stands at unprecedented levels. As 1999 ended, investors were focused almost
exclusively on Internet stocks because of their rapid growth in revenues, if not
profits. We have identified several potential catalysts for the realization of
the extraordinary opportunity we believe to be available in small-cap value
stocks. First, any decline in the Internet euphoria followed by a more realistic
examination of stock prices relative to fundamental results will benefit our
style. Such was the case when a similar, albeit smaller, technology surge ended
in 1996. Second, the dramatic rise in mergers, acquisitions and stock buy-backs
within our holdings indicates that corporate decision-makers are confirming that
our stocks' business fundamentals do not justify the current valuation
discounts. Finally, we feel global economic stabilization and recovery should
benefit our stocks, as demonstrated in the second quarter when the portfolio
excelled in an environment where investors focused on the improving global
outlook. We appreciate your continued trust and are confident that our style
will once again return to favor.
As always, we welcome the opportunity to discuss the portfolio and this report
in more detail. If you have any questions or comments, please feel free to
contact us.
Henry F. Otto Steven M. Tonkovich
Managing Director Managing Director
January 21, 2000
DJIA 11251.70
9
<PAGE>
Performance Information
Legg Mason Investors Trust, Inc.
Total Returns for One Year, Five Years, and Life of Class, as of December 31,
1999
The returns shown are based on historical results and are not intended to
indicate future performance. Total return measures investment performance in
terms of appreciation or depreciation in net asset value per share plus
dividends and any capital gain distributions. It assumes that dividends and
distributions were reinvested at the time they were paid. The investment return
and principal value of an investment in each of these Funds will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. Average annual returns tend to smooth out variations in a Fund's
return, so that they differ from actual year-to-year results. No adjustment has
been made for any income taxes payable by shareholders.
Each Fund offers two classes of shares:Primary Class and Navigator Class.
Information about the Navigator Class of U.S. Small Cap Value Trust, offered
only to certain institutional investors, is contained in a separate report to
its shareholders. The Navigator Class shares of American Leading Companies were
redeemed on December 3, 1998. The Navigator Class of Balanced Trust has not
commenced operations.
The Funds' total returns as of December 31, 1999, were as follows:
<TABLE>
<CAPTION>
American Leading Balanced U.S. Small-Cap
Companies Trust Trust Value Trust
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Return
Primary Class:
One Year +5.25% -1.37% -5.00%
Five Years +20.05% N/A N/A
Life of Class/A/ +14.89% +7.98% -11.73%
Cumulative Total Return
Primary Class:
One Year +5.25% -1.37% -5.00%
Five Years +149.38% N/A N/A
Life of Class/A/ +140.96% +28.38% -17.54%
- --------------------------------------------------------------------------------------------------
</TABLE>
/A/ Primary Class inception dates are:
American Leading Companies Trust -- September 1, 1993
Balanced Trust -- October 1, 1996
U.S. Small-Cap Value Trust -- June 15, 1998
10
<PAGE>
American Leading Companies Trust
Selected Portfolio Performance*
Strong performers for the 4th quarter 1999
------------------------------------------
1. Gateway Inc. +62.2%
2. Amgen Inc. +47.4%
3. Wal-Mart Stores, Inc. +45.3%
4. America Online, Inc. +45.0%
5. Koninklijke (Royal) Philips
Electronics N.V. +33.7%
* Securities held for the entire quarter.
Weak performers for the 4th quarter 1999
--------------------------------------------
1. Mattel, Inc. -30.9%
2. McKesson HBOC, Inc. -22.2%
3. Burlington Northern Santa Fe
Corporation -11.8%
4. Washington Mutual, Inc. -11.1%
5. International Business Machines
Corporation -11.0%
Portfolio Changes
Securities added during the 4th quarter 1999
--------------------------------------------
Albertson's, Inc.
Amazon.com, Inc.
Bell Atlantic Corporation
Dell Computer Corporation
Eastman Kodak Company
First Union Corporation
GTE Corporation
Qwest Communications International Inc.
Sprint Corporation
Tommy Hilfiger Corporation
Unisys Corporation
US WEST, Inc.
Securities sold during the 4th quarter 1999
--------------------------------------------
Cisco Systems, Inc.
Delphi Automotive Systems Corporation
E.I. du Pont de Nemours and Company
PepsiCo, Inc.
Pfizer Inc.
Philip Morris Companies Inc.
Rite Aid Corporation
Texaco, Inc.
Xerox Corporation
11
<PAGE>
Performance Information -- Continued
Balanced Trust
Selected Portfolio Performance*
Strong performers for the 4th quarter 1999
--------------------------------------------------
1. Nortel Networks Corporation +98.0%
2. BroadWing Inc. +89.7%
3. Kansas City Southern Industries, Inc. +60.7%
4. The Home Depot, Inc. +50.0%
5. Citigroup Inc. +26.3%
* Securities held for the entire quarter.
Weak performers for the 4th quarter 1999
--------------------------------------------------
1. Tyco International Ltd. -24.7%
2. Charter One Financial, Inc. -17.3%
3. International Business Machines
Corporation -11.0%
4. Unocal Corporation -9.4%
5. Blackrock North American
Government Income Trust, Inc. -9.3%
Portfolio Changes
Securities added during the 4th quarter 1999
--------------------------------------------------
The Walt Disney Company
Johnson & Johnson
Total Fina SA ADR
Tribune Company
6.50%, 7/30/04
United States Treasury Notes
6.50%, 10/15/06
United States Treasury Bonds
7.125%, 2/15/23
United States Treasury STRIPs
0.00%, 11/15/05
0.00%, 5/15/06
Securities sold during the 4th quarter 1999
--------------------------------------------------
Aetna Inc.
H&R Block, Inc.
Fannie Mae
6.00%, 4/1/28 - 10/1/28
Government National Mortgage Association
6.00%, 9/15/28 - 12/15/28
Molex Incorporated
Philip Morris Companies Inc.
Phillips Petroleum Company
12
<PAGE>
U.S. Small-Capitalization Value Trust
Selected Portfolio Performance
Strong performers for the 4th quarter 1999*
--------------------------------------------------
1. Boundless Corporation +106.2%
2. JWGenesis Financial Corp. +83.7%
3. Nu Horizons Electronics Corp. +73.8%
4. Conso International Corporation +68.3%
5. Curative Health Services, Inc. +63.2%
6. Personnel Group of America, Inc. +62.0%
7. Consumer Portfolio Services, Inc. +61.3%
8. Catherines Stores Corporation +60.0%
9. Paravant Inc. +56.8%
10. Cobra Electronics Corporation +54.9%
* Securities held for the entire quarter.
Weak performers for the 4th quarter 1999*
--------------------------------------------------
1. Styling Technology Corporation -70.9%
2. Frontier Insurance Group, Inc. -60.7%
3. Fruit Of The Loom, Inc. -56.6%
4. Acceptance Insurance
Companies Inc. -54.4%
5. AMRESCO, INC. -53.1%
6. CareMatrix Corporation -51.8%
7. Pediatrix Medical Group, Inc. -49.5%
8. Decorator Industries, Inc. -48.8%
9. GenCorp Inc. -46.1%
10. Smithway Motor Xpress Corp. -44.5%
Portfolio Changes
Top 10 securities added during the 4th quarter 1999/+/
-------------------------------------------------------
AK Steel Holding Corporation
Wisconsin Central Transportation Corporation
Ogden Corporation
The Standard Register Company
Group Maintenance America Corp.
Department 56, Inc.
Trammell Crow Company
Pharmaceutical Product Development, Inc.
Bay View Capital Corporation
Aviation Sales Company
/+/ Ranked using market values calculated as of December 31, 1999.
Top 10 securities sold during the 4th quarter 1999/++/
-------------------------------------------------------
USFreightways Corporation
Varco International, Inc.
Pride International, Inc.
Cable Design Technologies Corporation
Foremost Corporation of America
The Dexter Corporation
Kennametal Inc.
Georgia Gulf Corporation
MagneTek, Inc.
Harman International Industries, Incorporated
/++/ Ranked using market values calculated as of September 30, 1999.
13
<PAGE>
Portfolio of Investments
Legg Mason Investors Trust, Inc.
December 31, 1999 (Unaudited)
(Amounts in Thousands)
American Leading Companies Trust
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks and Equity Interests -- 98.5%
Airlines -- 1.8%
AMR Corporation 88 $ 5,896/A/
--------
Automotive -- 2.4%
Ford Motor Company 60 3,206
General Motors Corporation 65 4,725
--------
7,931
--------
Banking -- 13.0%
Bank Of America Corporation 107 5,370
Bank One Corporation 266 8,529
Citigroup Inc. 266 14,752
First Union Corporation 25 820
Mellon Financial Corporation 78 2,657
The Chase Manhattan Corporation 133 10,332
--------
42,460
--------
Capital Goods -- 1.4%
General Electric Company 30 4,643
--------
Computer Services and Systems -- 14.4%
Dell Computer Corporation 30 1,530/A/
Gateway Inc. 185 13,332/A/
Hewlett-Packard Company 28 3,190
Intel Corporation 100 8,231
International Business Machines Corporation 118 12,744
Lucent Technologies Inc. 30 2,244
Storage Technology Corporation 170 3,135/A/
Unisys Corporation 90 2,874/A/
--------
47,280
--------
Computer Software -- 3.0%
Microsoft Corporation 85 9,924/A/
--------
Consumer Cyclicals -- 2.7%
Mattel, Inc. 300 3,937
Wal-Mart Stores, Inc. 70 4,839
--------
8,776
--------
Consumer Staples -- 3.1%
Avon Products, Inc. 160 5,280
Kimberly-Clark Corporation 50 3,262
The Procter & Gamble Company 15 1,600
--------
10,142
--------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electrical Equipment and Electronics -- 3.9%
Koninklijke (Royal) Philips Electronics N.V. 95 $ 12,825
--------
Energy -- 0.4%
Exxon Mobil Corporation 15 1,168
--------
Financial Services -- 4.9%
Fannie Mae 84 5,245
MGIC Investment Corporation 180 10,833
--------
16,078
--------
Food, Beverage and Tobacco -- 0.7%
Sara Lee Corporation 110 2,427
--------
Health Care -- 7.0%
Foundation Health Systems, Inc. 650 6,459/A/
Johnson & Johnson 24 2,254
McKesson HBOC, Inc. 180 4,061
United HealthCare Corporation 190 10,094
--------
22,868
--------
Hotels and Motels -- 1.5%
Starwood Hotels & Resorts Worldwide, Inc. 205 4,817
--------
Insurance -- 5.6%
American International Group, Inc. 14 1,500
Berkshire Hathaway Inc. - Class B 6 10,614/A/
Conseco, Inc. 355 6,346
--------
18,460
--------
Manufacturing -- 1.0%
Minnesota Mining and Manufacturing Company 33 3,230
Media -- 6.2%
America Online, Inc. 270 20,368/A/
--------
Non-Hazardous Waste Disposal -- 1.8%
Waste Management, Inc. 340 5,844
--------
Pharmaceuticals -- 7.6%
Amgen Inc. 175 10,511/A/
Bristol-Myers Squibb Company 85 5,456
Merck & Co., Inc. 78 5,231
Schering-Plough Corporation 88 3,712
--------
24,910
--------
</TABLE>
15
<PAGE>
Portfolio of Investments -- Continued
Legg Mason Investors Trust, Inc.
American Leading Companies Trust -- Continued
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Photo Equipment and Supplies -- 0.4%
Eastman Kodak Company 20 $ 1,325
--------
Real Estate -- 0.8%
Equity Office Properties Trust 110 2,704
--------
Retail Sales -- 3.1%
Albertson's, Inc. 70 2,258
Saks Incorporated 145 2,260/A/
Tommy Hilfiger Corporation 75 1,748/A/
Toys "R" Us, Inc. 263 3,764/A/
--------
10,030
--------
Retail-Internet -- 1.4%
Amazon.com, Inc. 60 4,568/A/
--------
Savings and Loan -- 2.6%
Washington Mutual, Inc. 327 8,502
--------
Telecommunications -- 6.9%
AT&T Corp. 90 4,568
Bell Atlantic Corporation 20 1,231
GTE Corporation 19 1,341
MCI WorldCom, Inc. 150 7,959/A/
Qwest Communications International Inc. 80 3,440/A/
Sprint Corporation 33 2,221
US WEST, Inc. 26 1,872
--------
22,632
--------
Transportation -- 0.9%
Burlington Northern Santa Fe Corporation 120 2,910
--------
Total Common Stocks and Equity Interests (Identified Cost -- $246,928) 322,718
- ---------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreements -- 1.8%
Bank of America
3.10%, dated 12/31/99, to be repurchased at $2,948 on 1/3/00
(Collateral: $3,289 Federal Home Loan Bank mortgage-backed
securities, 6%, due 9/1/28, value $3,026) $2,948 $ 2,948
Morgan Stanley Dean Witter
2.25%, dated 12/31/99, to be repurchased at $2,948 on 1/3/00
(Collateral: $2,220 Fannie Mae mortgage-backed securities,
11.75%, due 11/15/14, value $3,034) 2,947 2,947
--------
Total Repurchase Agreements (Identified Cost -- $5,895) 5,895
------------------------------------------------------------------------------------------------------
Total Investments -- 100.3% (Identified Cost -- $252,823) 328,613
Other Assets Less Liabilities -- (0.3)% (923)
--------
Net assets -- 100.0% $327,690
========
Net asset value per share $19.13
======
------------------------------------------------------------------------------------------------------
</TABLE>
/A/ Non-income producing.
17
<PAGE>
Portfolio of Investments
Legg Mason Investors Trust, Inc.
December 31, 1999 (Unaudited)
(Amounts in Thousands)
Balanced Trust
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks and Equity Interests -- 61.1%
Advertising/Media -- 1.9%
Time Warner, Inc. 11 $ 797
-------
Automotive -- 2.1%
Ford Motor Company 17 908
-------
Chemicals -- 0.9%
Potash Corporation of Saskatchewan, Inc. 8 400
-------
Computer Services and Systems -- 1.8%
Compaq Computer Corporation 9 244
International Business Machines Corporation 5 518
-------
762
-------
Construction and Building Materials -- 1.5%
Martin Marietta Materials, Inc. 16 636
-------
Electrical Equipment and Electronics -- 2.5%
Intel Corporation 13 1,070
-------
Energy -- 3.8%
Atlantic Richfield Company (ARCO) 6 493
Total Fina SA ADR 8 519
Unocal Corporation 17 571
-------
1,583
-------
Entertainment -- 1.2%
The Walt Disney Company 17 497
-------
Finance -- 8.7%
Citigroup Inc. 21 1,189
Fannie Mae 22 1,373
Marshall & Ilsley Corporation 11 691
Mellon Financial Corporation 12 409
-------
3,662
-------
Food, Beverage and Tobacco -- 4.1%
Anheuser-Busch Companies, Inc. 10 737
McDonald's Corporation 11 443
SYSCO Corporation 14 554
-------
1,734
-------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care -- 2.9%
Abbott Laboratories 20 $ 708
Johnson & Johnson 5 503
-------
1,211
-------
Investment Companies -- 2.2%
Blackrock North American Government Income Trust, Inc. 100 913
-------
Manufacturing -- 3.9%
Dover Corporation 13 590
Kaydon Corporation 19 509
Tyco International Ltd. 14 560
-------
1,659
-------
Pharmaceuticals -- 1.8%
Merck & Co., Inc. 11 744
-------
Real Estate Investment Trusts (REITs) -- 4.3%
Chateau Communities, Inc. 45 1,167
Post Properties, Inc. 17 651
-------
1,818
-------
Retail -- 1.2%
The Home Depot, Inc. 8 514
-------
Savings and Loan -- 2.5%
Charter One Financial, Inc. 56 1,064
-------
Services -- 1.4%
Cintas Corporation 11 574
-------
Telecommunications -- 7.0%
AT&T Corp. 19 964
BroadWing Inc. 12 435/A/
MCI WorldCom, Inc. 11 597/A/
Nortel Networks Corporation 9 940
-------
2,936
-------
Transportation -- 5.4%
AMR Corporation 8 536/A/
GATX Corporation 12 405
Kansas City Southern Industries, Inc. 10 724
Union Pacific Corporation 14 611
-------
2,276
-------
Total Common Stocks and Equity Interests (Identified Cost -- $22,395) 25,758
------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
Portfolio of Investments -- Continued
Legg Mason Investors Trust, Inc.
Balanced Trust -- Continued
<TABLE>
<CAPTION>
Rate Maturity Date Shares/Par Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate and Other Bonds -- 13.0%
Associates Corporation of North America 5.50% 2/15/02 $ 900 $ 875
General Electric Capital Corporation 6.29% 12/15/07 1,000 990
Merrill Lynch & Co., Inc. 6% 11/15/04 1,000 948
Safeway Inc. 5.75% 11/15/00 770 763
Tribune Company 6.50% 7/30/04 700 674
Union Pacific Corporation 5.78% 10/15/01 1,050 1,026
Union Pacific Corporation 7.375% 5/15/01 200 201
-------
Total Corporate and Other Bonds (Identified Cost -- $5,607) 5,477
---------------------------------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations -- 25.4%
Inflation-Indexed Securities -- 5.5%
United States Treasury
Inflation-Indexed Security 3.625% 7/15/02 - 1/15/08 2,356 2,303/C/
-------
Medium-Term Notes -- 4.7%
Fannie Mae 5.60% 2/2/01 1,000 990
Federal Farm Credit Bank 5.52% 2/25/02 1,000 977
-------
1,967
-------
Mortgage-Backed Securities -- 5.5%
Fannie Mae 6% 12/1/25 - 4/1/28 974 897
Freddie Mac 6% 3/1/26 70 64
Government National Mortgage Association 6% 8/15/28 - 11/15/28 1,492 1,357
-------
2,318
-------
Treasury Notes/STRIPs -- 9.7%
United States Treasury Bonds 7.125% 2/15/23 290 302
United States Treasury Notes 5.25% 8/15/03 150 145
United States Treasury Notes 6.50% 10/15/06 1,000 997
United States Treasury STRIPs 0% 5/15/05 - 5/15/06 3,900 2,671/B/
-------
4,115
-------
Total U.S. Government and Agency Obligations (Identified Cost -- $11,025) 10,703
---------------------------------------------------------------------------------------------------------------------
Total Investments -- 99.5% (Identified Cost -- $39,027) 41,938
Other Assets Less Liabilities -- 0.5% 200
-------
Net assets -- 100.0% $42,138
=======
Net asset value per share $11.81
======
---------------------------------------------------------------------------------------------------------------------
</TABLE>
/A/ Non-income producing.
/B/ Zero-coupon bond -- A bond with no periodic interest payments which is
sold at such a discount as to produce a current yield-to-maturity.
/C/ United States Treasury Inflation-Indexed Security -- U.S. Treasury
security whose principal value is adjusted daily in accordance with
changes in the Consumer Price Index. Interest is calculated on the basis
of the current adjusted principal value.
20
<PAGE>
Portfolio of Investments
Legg Mason Investors Trust, Inc.
December 31, 1999 (Unaudited)
(Amounts in Thousands)
U.S. Small-Capitalization Value Trust
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks and Equity Interests -- 97.5%
Aerospace/Defense -- 1.6%
Alliant Techsystems Inc. 5 $ 293/A/
Aviation Sales Company 10 168/A/
AVTEAM, Inc. 8 42/A/
EDO Corporation 4 24
GenCorp Inc. 13 132
Herley Industries, Inc. 3 43/A/
International Airline Support Group, Inc. 2 6/A/
Kaman Corporation 16 207
Kellstrom Industries, Inc. 8 74/A/
Ladish Co., Inc. 9 59/A/
SIFCO Industries, Inc. 3 22
-------
1,070
-------
Apparel -- 3.4%
Bernard Chaus, Inc. 15 36/A/
Cache, Inc. 2 13/A/
Catherines Stores Corporation 5 99/A/
Fruit Of The Loom, Inc. 14 20/A/
Garan, Incorporated 4 106
Genesco Inc. 19 244/A/
Goody's Family Clothing, Inc. 25 132/A/
Hartmarx Corporation 8 32/A/
Kellwood Company 19 369
Maxwell Shoe Company Inc. 6 48/A/
Nautica Enterprises, Inc. 37 421/A/
One Price Clothing Stores, Inc. 7 19/A/
Oxford Industries, Inc. 6 113
Paul Harris Stores, Inc. 8 22/A/
Perry Ellis International, Inc. 4 43/A/
PremiumWear, Inc. 1 6/A/
S&K Famous Brands, Inc. 3 19/A/
Shoe Pavilion, Inc. 5 10/A/
Sport-Haley, Inc. 3 10/A/
Superior Uniform Group Inc. 1 12
Syms Corp. 8 39/A/
Tandy Brands Accessories, Inc. 3 44/A/
The Cato Corporation 12 152
The Dress Barn, Inc. 17 274/A/
-------
2,283
-------
</TABLE>
21
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automotive -- 2.8%
Arvin Industries, Inc. 17 $ 468
Autocam Corporation 2 44
Bandag, Incorporated 12 308
Bandag, Incorporated Class A 4 77
Barnes Group Inc. 12 199
Collins Industries, Inc. 5 24
Dura Automotive Systems, Inc. 12 206/A/
Edelbrock Corporation 2 29
Featherlite Inc. 4 20/A/
Hayes Lemmerz International, Inc. 1 19/A/
Monaco Coach Corporation 6 155/A/
R & B, Inc. 6 26/A/
Simpson Industries, Inc. 14 153
Strattec Security Corporation 2 74/A/
TBC Corporation 15 91/A/
-------
1,893
-------
Broadcast/Media -- 0.1%
Courier Corporation 2 36
-------
Chemicals -- 3.3%
A. Schulman, Inc. 19 312
Aceto Corporation 1 10
Albemarle Corporation 13 251
American Vanguard Corporation 1 6
Balchem Corporation 3 24
Chemfab Corporation 1 9/A/
Ethyl Corporation 85 334
Hawkins Chemical, Inc. 3 26
International Specialty Products Inc. 22 202/A/
NL Industries, Inc. 39 586
Northern Technologies International Corporation 2 17
Omnova Solutions Inc. 13 104
Quaker Chemical Corporation 7 96
Stepan Company 7 171
Sybron Chemicals Inc. 4 46/A/
The General Chemical Group Inc. 15 35
-------
2,229
-------
Commercial/Industrial Services -- 8.1%
ADVO, Inc. 16 378/A/
Alternative Resources Corporation 5 28/A/
ASI Solutions Incorporated 4 19/A/
Avis RentACar, Inc. 21 542/A/
BCT International, Inc. 3 5/A/
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial/Industrial Services -- Continued
Bell Microproducts Inc. 7 $ 73/A/
Billing Concepts Corp. 13 86/A/
Business Resource Group 1 5/A/
Butler International, Inc. 7 75/A/
Butler Manufacturing Company 5 109
Cadmus Communications Corporation 5 40
Cameron Ashley Building Products, Inc. 6 64/A/
Carriage Services, Inc. 11 64/A/
CDI Corp. 14 328/A/
Children's Comprehensive Services, Inc. 5 29/A/
Corrpro Companies 5 31/A/
CORT Business Services Corporation 7 119/A/
Electro Rent Corporation 6 70/A/
Ellett Brothers, Inc. 5 36
Ennis Business Forms, Inc. 12 95
Exponent, Inc. 3 23/A/
FiberMark, Inc. 5 62/A/
Franklin Covey Co. 16 118/A/
FTI Consulting, Inc. 3 15/A/
General Employment Enterprises, Inc. 4 16
Gradco Systems, Inc. 5 7/A/
GRC International, Inc. 3 39/A/
Group Maintenance America Corp. 26 273/A/
Headway Corporate Resources, Inc. 5 20/A/
Health Management Systems, Inc. 12 75/A/
Healthcare Services Group, Inc. 8 52/A/
Interstate National Dealer Services, Inc. 3 19/A/
Lawson Products, Inc. 6 134
Mail-Well, Inc. 17 225/A/
Mercury Air Group, Inc. 6 45/A/
Nash-Finch Company 5 33
National Technical Systems, Inc. 6 24
Ogden Corporation 34 401
Perini Corporation 4 16/A/
Personal Group Of America, Inc. 20 201/A/
PrimeSource Corporation 4 17
Refac 3 10/A/
RemedyTemp, Inc. 7 125/A/
Robertson-Ceco Corporation 4 37/A/
Rush Enterprises, Inc. 2 22/A/
Schawk, Inc. 10 83
Service Experts, Inc. 12 70/A/
SOS Staffing Services, Inc. 10 42/A/
</TABLE>
23
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial/Industrial Services -- Continued
Staff Leasing, Inc. 15 $ 142/A/
Star Buffet, Inc. 2 7/A/
Stewart Enterprises, Inc. 74 353
The Standard Register Company 15 298
Thomas Group, Inc. 3 36/A/
USEC Inc. 2 17
Vestcom International, Inc. 7 23/A/
Wallace Computer Services, Inc. 1 18
Westaff, Inc. 12 97/A/
-------
5,391
-------
Computer Services and Systems -- 1.9%
ANSYS, Inc. 6 65/A/
Avant! Corporation 24 363/A/
Boundless Corporation 3 25/A/
CfI ProServices Inc. 4 31/A/
Cotelligent, Inc. 1 8/A/
MTS Systems Corporation 14 110
NeoMagic Corporation 20 213/A/
Paravant Inc. 1 5/A/
PSC Inc. 9 66/A/
Software Spectrum, Inc. 3 49/A/
Structural Dynamics Research Corporation 25 312/A/
-------
1,247
-------
Construction and Building Materials -- 9.0%
American Homestar Corporation 14 54/A/
Ameron International Corporation 3 103
Aztec Manufacturing Co. 4 50
Baltek Corporation 1 4/A/
Beazer Homes USA, Inc. 6 118/A/
Building Materials Holding Corporation 9 88/A/
Cavalier Homes, Inc. 14 53
Champion Enterprises, Inc. 27 230/A/
Craftmade International, Inc. 5 37
D.R.Horton, Inc. 33 455
Dayton Superior Corporation 4 59/A/
Del Webb Corporation 14 342/A/
Dominion Homes, Inc. 4 25/A/
Drew Industries Incorporated 9 77/A/
Engle Homes, Inc. 8 97
Fleetwood Enterprises, Inc. 22 446
Homebase, Inc. 23 71/A/
Hovnanian Enterprises, Inc. 16 103/A/
Hughes Supply, Inc. 16 354
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Construction and Building Materials -- Continued
International Aluminum Corporation 2 $ 54
JLK Direct Distribution Inc. 17 172/A/
M/I Schottenstein Homes, Inc. 6 93
Mcgrath Rentcorp 8 131
Meadow Valley Corporation 2 9/A/
Miller Building Systems, Inc. 2 7/A/
NCI Building Systems, Inc. 13 233/A/
Palm Harbor Homes, Inc. 12 207/A/
Patrick Industries, Inc. 4 32
Pulte Corporation 36 801
Republic Group Incorporated 7 112
Skyline Corporation 7 160
Southern Energy Homes, Inc. 9 20/A/
Standard Pacific Corp. 22 244
The Ryland Group, Inc. 11 258
Toll Brothers, Inc. 25 458/A/
U.S. Home Corporation 9 238/A/
Washington Homes, Inc. 5 27/A/
-------
6,022
-------
Consumer Durables -- 2.6%
Boston Acoustics, Inc. 4 52
Catalina Lighting, Inc. 3 13/A/
Central Garden & Pet Company 21 219/A/
Chromcraft Revington, Inc. 8 84/A/
Cobra Electronics Corporation 3 17/A/
Congoleum Corporation 6 25/A/
Conso International Corporation 5 43/A/
Department 56, Inc. 12 269/A/
Fedders Corporation 20 111
Flexsteel Industries, Inc. 4 55
Home Products International, Inc. 6 57/A/
Koss Corporation 2 33/A/
LADD Furniture, Inc. 3 59/A/
Lifetime Hoan Corporation 7 37
Mikasa, Inc. 8 76
Pulaski Furniture Corporation 2 28
Royal Appliance Mfg. Co. 1 7/A/
Russ Berrie and Company, Inc. 14 368
The L. S. Starrett Company 4 94
The Rowe Companies 10 85
The York Group, Inc. 6 28
-------
1,760
-------
</TABLE>
25
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Non-Durables -- 0.5%
French Fragrances, Inc. 10 $ 67/A/
Nature's Sunshine Products, Inc. 13 107
Ocular Sciences, Inc. 5 96/A/
Rural/Metro Corporation 11 47/A/
Styling Technology Corporation 2 7/A/
-------
324
-------
Electrical Equipment and Electronics -- 2.3%
Acme Electric Corporation 3 17/A/
Axsys Technologies, Inc. 2 30/A/
Caere Corporation 8 61/A/
Detection Systems, Inc. 3 29/A/
Graham Corporation 1 7/A/
InaCom Corp. 31 227/A/
Microsemi Corporation 4 38/A/
Nu Horizons Electronics Corp. 7 92/A/
Percon Incorporated 3 43/A/
Pioneer-Standard Electronics, Inc. 18 260
Powell Industries, Inc. 8 55/A/
Richardson Electronics, Ltd. 8 63
Savoir Technology Group, Inc. 9 61/A/
The Cherry Corporation 5 51/A/
The Lamson & Sessions Co. 8 37/A/
Triumph Group, Inc. 9 215/A/
UCAR International, Inc. 14 242/A/
Woodhead Industries, Inc. 2 26
-------
1,554
-------
Entertainment and Leisure -- 3.9%
Anchor Gaming 8 356/A/
Arctic Cat, Inc. 20 204
Black Hawk Gaming & Development Company, Inc. 3 16/A/
Boyd Gaming Corporation 45 260/A/
Cannondale Corporation 6 38/A/
Dave & Busters, Inc. 9 74/A/
GTECH Holdings Corporation 25 539/A/
Johnson Worldwide Associates Inc. 6 40/A/
K2 Inc. 12 94
Lady Luck Gaming Corporation 3 31/A/
Lakes Gaming, Inc. 8 61/A/
Lodgian, Inc. 19 95/A/
PlayCore, Inc. 3 25/A/
Prime Hospitality Corp. 41 365/A/
Scientific Games Holdings Corp. 8 136/A/
Silverleaf Resorts, Inc. 3 21/A/
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Entertainment and Leisure -- Continued
Suburban Lodges of America, Inc. 12 $ 60/A/
Travis Boats & Motors, Inc. 1 17/A/
Winnebago Industries, Inc. 7 148
-------
2,580
-------
Financial Services -- 7.5%
Advanta Corp. 18 323
Alliance Bancorp of New England, Inc. 1 9
Amplicon, Inc. 6 71
AMRESCO, INC. 37 51/A/
Arcadia Financial Ltd. 28 125/A/
Bank United Corp. 1 30
BankAtlantic Bancorp, Inc. 29 118
Bay View Capital Corporation 13 182
BNC Mortgage, Inc. 4 24/A/
BSB Bancorp, Inc. 7 131
BYL Bancorp 2 14
Camco Financial Corporation 1 14
Community Bank System, Inc. 2 46
Conning Corporation 9 76
Consumer Portfolio Services 10 15/A/
Corrus Bankshares, Inc. 11 262
Credit Acceptance Corporation 10 38/A/
Delta Financial Corporation 11 43/A/
Downey Financial Corp. 12 234
DVI, Inc. 3 47/A/
Enhance Financial Services Group, Inc. 29 463
Fidelity National Financial, Inc. 23 333
First Alliance Corporation 14 27/A/
First Citizens Bancshares Inc. 6 412
First Essex Bancorp, Inc. 2 32
First Republic Bank 3 73/A/
FirstFed Financial Corp. 14 202/A/
Flagstar Bancorp, Inc. 9 162
GA Financial, Inc. 4 48
GBC Bancorp 2 39
Hamilton Bancorp Inc. 8 133/A/
Hawthorne Financial Corporation 4 45/A/
Interpool, Inc. 19 140
ISB Financial Corporation 5 65
ITLA Capital Corporation 5 62/A/
Jefferies Group, Inc. 6 136
JWGenesis Financial Corp. 2 59/A/
Matrix Bancorp, Inc. 2 18/A/
</TABLE>
27
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Financial Services -- Continued
Merchants Bancshares, Inc. 3 $ 60
MetroWest Bank 4 24
National City Bancorporation 7 111/A/
Pacific Crest Capital, Inc. 2 26
Parkvale Financial Corporation 5 75
Resource Bancshares Mortgage Group, Inc. 17 77
Sterling Financial Corporation 6 70/A/
Sunrise International Leasing Corporation 5 28/A/
TFC Enterprises, Inc. 10 36/A/
Union Acceptance Corporation 1 8/A/
USBANCORP, Inc. 10 118
World Acceptance Corporation 14 68/A/
-------
5,003
-------
Food, Beverage and Tobacco -- 3.0%
Cagle's, Inc. 4 41
Fresh America Corporation 3 13/A/
General Cigar Holdings, Inc. 18 151/A/
Herbalife International, Inc. 21 308
M&F Worldwide Corp. 14 71/A/
Marsh Supermarkets, Inc. 3 47
Michael Foods, Inc. 11 281
Natural Alternatives International, Inc. 4 14/A/
Pilgrim's Pride Corporation 8 66
Pilgrim's Pride Corporation Class A 4 25
R.H. Phillips, Inc. 4 9/A/
Sanderson Farms, Inc. 10 81
Scheid Vineyards Inc. 4 13
Schweitzer-Mauduit International, Inc. 12 160
Standard Commercial Corporation 9 31
Suprema Specialties, Inc. 1 9/A/
Sylvan, Inc. 3 25/A/
Todhunter International, Inc. 2 18/A/
Universal Corporation 25 564
WLR Foods, Inc. 12 71/A/
-------
1,998
-------
Gas/Pipeline -- 1.7%
Adams Resources & Energy 3 23
EnergySouth, Inc. 3 56
Friede Goldman International Inc. 16 111/A/
Gulf Islands Fabrication, Inc. 8 79/A/
Lufkin Industries, Inc. 2 34
Penn Virginia Corporation 6 106
Petroleum Development Corporation 5 19/A/
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Gas/Pipeline -- Continued
SEACOR Smit Inc. 10 $ 497/A/
Seitel, Inc. 17 111/A/
World Fuel Services Corporation 9 64
-------
1,100
-------
Health Care -- 3.8%
Alterra Healthcare Corporation 15 126/A/
American Dental Technologies, Inc. 5 8/A/
American Physicians Service Group, Inc. 2 6/A/
AmeriPath, Inc. 16 129/A/
Beverly Enterprises, Inc. 77 336/A/
Capital Senior Living Corporation 14 68/A/
Carematrix Corporation 12 31/A/
Castle Dental Centers, Inc. 5 14/A/
Coast Dental Services, Inc. 6 14/A/
Curative Health Services, Inc. 7 53/A/
Genesis Health Ventures, Inc. 24 50/A/
Healthcare Recoveries, Inc. 7 25/A/
Hi-Tech Pharmacal Co., Inc. 2 10/A/
Horizon Health Corporation 4 29/A/
Lifemark Corporation 2 5/A/
Medstone International, Inc. 4 18/A/
Mesa Laboratories, Inc. 2 7/A/
MIM Corporation 13 33/A/
Monarch Dental Corporation 7 12/A/
Moore Medical Corporation 2 21/A/
Omnicare, Inc. 62 748
OrthAlliance, Inc. 5 31/A/
Pediatrix Medical Group, Inc. 11 74/A/
Pharmaceutical Product Development, Inc. 17 200/A/
ProMedCo Management Company 16 46/A/
Radiologix, Inc. 15 66/A/
Raytel Medical Corporation 6 18/A/
RehabCare Group, Inc. 4 93/A/
Serologicals Corporation 15 89/A/
Sierra Health Services, Inc. 20 135/A/
Total Renal Care Holdings, Inc. 1 7/A/
USANA, Inc. 2 10/A/
Utah Medical Products, Inc. 3 22/A/
-------
2,534
-------
Industrial -- 4.4%
ACX Technologies, Inc. 20 212/A/
American Biltrite, Inc. 3 36
Ampco-Pittsburgh Corporation 7 67
</TABLE>
29
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Industrial -- Continued
Bairnco Corporation 6 $ 33
Baldwin Technology Company, Inc. 13 28/A/
Cascade Corporation 9 80
Channell Commercial Corporation 5 56/A/
Chart Industries, Inc. 3 11
Commercial Intertech Corp. 11 138
CPAC, Inc. 4 30
Detroit Diesel Corporation 9 180
Farrel Corporation 3 5
Gehl Company 4 63/A/
Gentek, Inc. 15 159
Gleason Corporation 6 139
Hardinge, Inc. 2 31
Holly Corporation 6 83
Industrial Holdings, Inc. 5 13/A/
Lincoln Electric Holdings, Inc. 4 74
Lydall, Inc. 4 28/A/
Milacron Inc. 28 427
O.I. Corporation 2 8/A/
Regal-Beloit Corporation 13 272
Specialty Equipment Companies, Inc. 8 196/A/
Summa Industries 3 34/A/
Supreme Industries, Inc. 8 52/A/
TB Wood's Corporation 4 34
Tech/Ops Sevcon, Inc. 2 23
The Carbide/Graphite Group, Inc. 6 37/A/
Watts Industries, Inc. 20 288
Woodward Governor Company 4 116
-------
2,953
-------
Insurance -- 7.0%
Acceptance Insurance Companies Inc. 11 62/A/
ACE Limited 15 247
AmerUs Life Holdings, Inc. 22 506
Amwest Insurance 3 18
Atlantic American Corporation 1 3/A/
Bancinsurance Corporation 2 13/A/
Delphi Financial Group, Inc. 14 423/A/
Donegal Group Inc. 6 40
Fremont General Corporation 48 353
Frontier Insurance Group, Inc. 27 93
Harleysville Group Inc. 22 312
HCC Insurance Holdings, Inc. 2 22
Kaye Group Inc. 4 37
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Insurance -- Continued
LandAmerica Financial Group, Inc. 9 $ 169
Merchants Group, Inc. 1 20
MMI Companies, Inc. 13 113
National Western Life Insurance Company 3 179/A/
Nymagic, Inc. 3 44
Penn Treaty American Corporation 6 90/A/
Professionals Group, Inc. 4 103/A/
Reliance Group Holdings, Inc. 78 524
Selective Insurance Group, Inc. 2 41
Standard Management Corporation 5 23/A/
Stewart Information Services Corporation 11 141
The Commerce Group, Inc. 26 682
The Midland Company 3 71
The Navigators Group, Inc. 6 61/A/
Trenwick Group Inc. 12 209
Unico American Corporation 4 29
-------
4,628
-------
Metals -- 5.9%
AK Steel Holding Corporation 30 564
Alltrista Corporation 6 128/A/
Amcast Industrial Corporation 7 113
Atchison Casting Corporation 5 49/A/
Bayou Steel Corporation 9 37/A/
Carpenter Technology Corporation 21 587
Chase Industries, Inc. 11 89/A/
Commercial Metals Company 11 373
Fansteel Inc. 5 19/A/
Friedman Industries, Incorporated 5 15
Intermet Corporation 19 216
Lindberg Corporation 4 28
Metals USA, Inc. 28 238/A/
Niagara Corporation 5 23/A/
Northwest Pipe Company 4 62/A/
Oglebay Norton Company 3 78
Quanex Corporation 10 263
Roanoke Electric Steel Corporation 3 54
ROHN Industries, Inc. 16 46/A/
Shiloh Industries, Inc. 4 44/A/
Steel Technologies Inc. 8 110
Texas Industries, Inc. 15 617
Universal Stainless & Alloy Products, Inc. 1 6/A/
Webco Industries, Inc. 4 15/A/
</TABLE>
31
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Metals -- Continued
Wolverine Tube, Inc. 10 $ 144/A/
Zemex Corporation 3 24/A/
-------
3,942
-------
Miscellaneous Manufacturing -- 6.1%
A.O. Smith Corporation 9 195
Apogee Enterprises, Inc. 6 31
Bacou USA, Inc. 8 125/A/
Badger Paper Mills, Inc. 2 8/A/
Brown & Sharpe Manufacturing Company 10 21/A/
CIRCOR International, Inc. 10 101/A/
Coachmen Industries Inc. 11 172
Columbus McKinnon Corporation 10 100
Core Materials Corporation 2 4/A/
Cybex International, Inc. N.M. 1/A/
Decora Industries, Inc. 3 9/A/
Denali Incorporated 3 9/A/
Global Payment Technologies, Inc. 6 56/A/
Griffon Corporation 23 178/A/
Hexcel Corporation 25 139/A/
Jason Incorporated 11 77/A/
Mark IV Industries, Inc. 1 23
MascoTech, Inc. 34 429
Met-Pro Corporation 2 22
Metrika Systems Corporation 4 24/A/
NACCO Industries, Inc. 6 339
NCH Corporation 2 107
OroAmerica, Inc. 4 24/A/
Park-Ohio Holdings Corp. 7 65/A/
Penn Engineering & Manufacturing Corp. 4 97
Penn Engineering & Manufacturing Corp., Class A 4 93
Precision Castparts Corp. 17 438
Printronix, Inc. 4 91/A/
Q.E.P. Co., Inc. 2 15/A/
Raven Industries, Inc. 4 51
Riviera Tool Company 1 6/A/
Robbins & Myers, Inc. 1 11
SPS Technologies, Inc. 6 182/A/
Standard Motor Products, Inc. 9 145
Standex International Corporation 8 172
The Eastern Company 1 21
The JPM Company 4 28/A/
TransTechnology Corporation 4 43
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Miscellaneous Manufacturing -- Continued
Westinghouse Air Brake Company 23 $ 406
Williams Controls, Inc. 5 10/A/
-------
4,068
-------
Process Industries -- 1.4%
Buckeye Technologies Inc. 27 394/A/
Rock-Tenn Company 22 323
Silgan Holdings Inc. 13 174/A/
The Anderson's Inc. 6 50
-------
941
-------
Real Estate -- 0.6%
AMREP Corporation 5 23/A/
Bluegreen Corporation 17 87/A/
DeWolfe Companies, Inc. 2 15/A/
Saxton Incorporated 3 7/A/
Trammell Crow Company 21 245/A/
-------
377
-------
Restaurants -- 2.0%
Ark Restaurants Corp. 3 23/A/
CKE Restaurants, Inc. 39 226
Cooker Restaurant Corporation 6 18
ELXSI Corporation 3 32/A/
Landry's Seafood Restaurants, Inc. 22 190/A/
Lone Star Steakhouse & Saloon, Inc. 24 213/A/
Luby's, Inc. 15 174
Main Street & Main Inc. 8 24/A/
Max & Erma's Restaurants, Inc. 2 13/A/
Rainforest Cafe, Inc. 19 73/A/
Ryan's Family Steak Houses, Inc. 29 246/A/
Schlotzsky's, Inc. 5 34/A/
Sizzler International, Inc. 19 49/A/
-------
1,315
-------
Retail -- 4.4%
A.C. Moore Arts & Crafts, Inc. 5 30/A/
Barnett Inc. 12 127/A/
Boise Cascade Office Products Corporation 16 244/A/
Cole National Corporation 11 55/A/
Duckwall-ALCO Stores, Inc. 4 27/A/
EZCORP, Inc. 7 30
Finlay Enterprises, Inc. 7 103/A/
Friedman's, Inc. 13 94
Funco, Inc. 3 37/A/
Government Technology Services Inc. 2 6/A/
</TABLE>
33
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Retail -- Continued
Jan Bell Marketing, Inc. 18 $ 52/A/
Jos. A. Bank Clothiers, Inc. 4 11/A/
Media Arts Group, Inc. 9 30/A/
Michael Anthony Jewelers, Inc. 2 5/A/
Micro Warehouse, Inc. 18 333/A/
Movie Star, Inc. 9 8/A/
Musicland Stores Corporation 12 98/A/
OfficeMax, Inc. 85 466/A/
Pier 1 Imports, Inc. 66 421
Piercing Pagoda, Inc. 3 48/A/
RDO Equipment Co. 8 45/A/
7 Eleven Incorporated 68 121/A/
ShopKo Stores, Inc. N.M. 5/A/
Specialty Catalog Corp. 1 5/A/
Sport Supply Group, Inc. 3 20/A/
Systemax, Inc. 24 205/A/
The Bon-Ton Stores, Inc. 12 42/A/
Tractor Supply Company 2 30/A/
Wilmar Industries, Inc. 10 172/A/
Wolohan Lumber Co. 3 39
-------
2,909
-------
Technology -- 0.4%
Del Global Technologies Corp. 5 41/A/
Equinox Systems, Inc. 2 18/A/
Hurco Companies, Inc. 4 15/A/
K-Tron International, Inc. 2 28/A/
Splash Technology Holdings, Inc. 11 93/A/
ThermoQuest Corporation 6 65/A/
-------
260
-------
Telecommunications -- 1.3%
Applied Signal Technology, Inc. 6 81
Blonder Tongue Laboratories, Inc. 6 27/A/
CellStar Corporation 51 504/A/
Comdial Corporation 5 50/A/
Communications Systems, Inc. 2 25
Generale Cable Corporation Delaware New 3 26
Superior TeleCom Inc. 9 136
-------
849
-------
Textiles -- 1.2%
Burlington Industries, Inc. 45 180/A/
Decorator Industries, Inc. 2 12
Guilford Mills, Inc. 7 49
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Textiles -- Continued
Interface, Inc. 40 $ 228
Lakeland Industries, Inc. 1 4/A/
Pillowtex Corporation 11 66
The Dixie Group, Inc. 9 66/A/
UniFirst Corporation 12 156
WestPoint Stevens Inc. 1 24
-------
785
-------
Transportation -- 6.1%
Alaska Air Group, Inc. 1 32/A/
Amerco 10 252/A/
America West Holdings Corporation 31 639/A/
Amtran, Inc. 2 33/A/
Arkansas Best Corporation 14 170/A/
Arnold Industries, Inc. 19 262
Boyd Bros. Transportation Inc. 2 14/A/
Consolidated Delivery & Logistics, Inc. 5 18/A/
Consolidated Freightways Corporation 17 135/A/
Covenant Transport, Inc. 11 195/A/
Dynamex Inc. 2 4/A/
Frozen Food Express Industries, Inc. 9 35
Genesee & Wyoming Inc. 3 37/A/
Hawaiian Airlines, Inc. 28 60/A/
Kitty Hawk, Inc. 12 84/A/
Landstar System, Inc. 3 128/A/
Midway Airlines Corporation 6 37/A/
Offshore Logistics, Inc. 16 148/A/
Old Dominion Freight Line, Inc. 5 56/A/
P.A.M. Transportation Services, Inc. 6 68/A/
Pittison BAX Group 14 153
RailTex, Inc. 7 125/A/
Roadway Express, Inc. 15 322
Smithway Motor Xpress Corp. 3 11/A/
The Greenbrier Companies, Inc. 11 92
Tower Air, Inc. 9 11/A/
Transport Corporation of America, Inc. 5 60/A/
U.S. Xpress Enterprises, Inc. 11 82/A/
USA Truck, Inc. 6 50/A/
Wisconsin Central Transportation Corporation 33 441/A/
Yellow Corporation 19 311/A/
-------
4,065
-------
</TABLE>
35
<PAGE>
Portfolio of Investments--Continued
Legg Mason Investors Trust, Inc.
U.S. Small-Capitalization Value Trust--Continued
<TABLE>
<CAPTION>
Shares/Par Value
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities -- 1.2%
Bangor Hydro-Electric Company 5 $ 73
Maine Public Service Company 1 21
Public Service Company of New Mexico 30 484
RGS Energy Group, Inc. 12 243
-------
821
-------
Total Common Stocks and Equity Interests (Identified Cost -- $76,434) 64,937
----------------------------------------------------------------------------------------------------------------------
Preferred Shares -- N.M.
O'Sullivan Industries Holdings, Inc. (Identified Cost -- $2) 3 2
----------------------------------------------------------------------------------------------------------------------
Repurchase Agreements -- 3.1%
Bank of America
3.10%, dated 12/31/99, to be repurchased at $1,036 on 1/3/00
(Collateral: $1,156 Freddie Mac mortgage-backed securities,
6%, due 9/1/28, value $1,064) 1,036 1,036
Morgan StanleyDean Witter
2.25%, dated 12/31/99, to be repurchased at $1,036 on 1/3/00
(Collateral: $750 U.S. Treasury Bonds, 14%, due 11/15/11,
value $1,060) 1,036 1,036
-------
Total Repurchase Agreements (Identified Cost -- $2,072) 2,072
----------------------------------------------------------------------------------------------------------------------
Total Investments -- 100.6% (Identified Cost -- $78,508) 67,011
Other Assets Less Liabilities -- (0.6)% (432)
-------
Net assets -- 100.0% $66,579
=======
Net asset value per share:
Primary Class $7.95
=====
Navigator Class $8.08
=====
----------------------------------------------------------------------------------------------------------------------
</TABLE>
/A/ Non-income producing.
N.M. -- Not Meaningful.
36
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