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[LOGO]
T O U C H S T O N E
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THE TOUCHSTONE FAMILY OF FUNDS
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SELECT ADVISORS TRUST A
( TOUCHSTONE EMERGING GROWTH FUND A
( TOUCHSTONE INTERNATIONAL EQUITY FUND A
( TOUCHSTONE GROWTH & INCOME FUND A
( TOUCHSTONE BALANCED FUND A
( TOUCHSTONE INCOME OPPORTUNITY FUND A
( TOUCHSTONE BOND FUND A
( TOUCHSTONE MUNICIPAL BOND FUND A
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
JUNE 30, 1996
<PAGE>
Dear Fellow Shareholder:
After posting many excellent gains through year-end and well into January,
the stock market, as of this writing, has contracted a case of the jitters. An
important contributor has been uncertainty about the direction of interest rates
with a growing bias toward the upside. The financial markets thought they
noticed signs of vigor in the overall economy and were increasingly concerned
about the effect rising commodity prices might have on future inflation. Gross
domestic product, which measures our economy's momentum, gained strength.
Despite some instability in equity prices, dips in the market have remained
modest by historical standards. Although market buoyancy can cause sleeplessness
for some investors, it can also afford opportunities that can add value to our
funds.
The economy is growing and inflation appears to be in check, which is an
encouraging climate for financial markets. Stocks should continue to provide
decent returns for investors with a long-term perspective, but it is important
to remember that the financial markets do not often go straight up as they did
in 1995. As of this date, it is difficult to tell if the market correction has
run its course. However, good markets never continue forever without some
unexpected, temporary interruption.
On July 1st we launched our new Internet Web site at
"WWW.TOUCHSTONEFUNDS.COM" to help keep Touchstone shareholders, contract owners,
investment professionals and potential investors better informed. With the click
of a mouse, Internet users can explore specific Touchstone mutual fund or
variable annuity* products (including prices), read about portfolio managers,
and even begin to create hypothetical investment strategies and model
portfolios. The site also allows users to become familiar with Touchstone
through reprints of news articles from major financial publications.
Providing easy-to-use navigation tools, quick-loading graphics and valuable
information, the site incorporates the best aspects of a Web site. Touchstone
believes that technology is a valuable tool for our clients, and a Web site is a
natural tool for Touchstone to create to ensure we are meeting our clients'
needs.
Thank you for your continued confidence and investment in the Touchstone
Family of Funds and Variable Annuities*.
Sincerely,
Edward G. Harness
President and Chief Executive Officer
Touchstone Family of Funds
*Variable annuities are underwritten by Western-Southern Life Assurance Company,
Cincinnati, Ohio.
<PAGE>
TOUCHSTONE EMERGING GROWTH FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected Touchstone Emerging
Growth Fund A's performance. Small capitalization stocks, as measured by the
Russell 2000, rose 10.4% while the total return (net of fees, expenses and the
sales charge of 5.75%) for the Touchstone Emerging Growth Fund A was 2.9%.
As the value-style manager of the Touchstone Emerging Growth Fund A, David L.
Babson's value oriented expertise yielded solid performance during the very
strong growth market that occurred in the first half of 1996. While several of
their holdings fell temporarily out of favor with Wall Street, Babson still
liked the fundamentals of these stories and has used these opportunities to add
to their positions. Babson believed the fund was well positioned should the
market experience any slow down or correction.
As the growth-style manager of the Touchstone Emerging Growth Fund A, Westfield
Capital Management continued to find companies with good growth prospects
selling at less than one times their growth rate. Their emphasis on growth
stocks has been consistent with their long held belief that over the longer term
emerging growth stocks outperform their larger cap counterparts. Current market
conditions have enabled Westfield to buy high quality growth stocks of
individual companies that are still at reasonable valuations.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF A $10,000 INVESTMENT
<S> <C> <C> <C>
Touchstone Emerging Russell 2000 CDA/Wiesenberger Small Company
Growth Fund A Index Growth Avg.-MF
9/94 $9,425 $10,000 $10,000
10/94 9,557 9,960 10,126
11/94 9,426 9,557 9,744
12/94 9,681 9,813 9,937
1/95 9,566 9,686 9,828
2/95 9,854 10,092 10,214
3/95 10,093 10,265 10,489
4/95 10,284 10,493 10,632
5/95 10,323 10,674 10,796
6/95 10,735 11,227 11,406
7/95 11,539 11,874 12,224
8/95 11,676 12,120 12,419
9/95 11,733 12,336 12,717
10/95 11,159 11,784 12,312
11/95 11,829 12,279 12,762
12/95 11,865 12,603 12,959
1/96 11,783 12,590 12,941
2/96 12,247 12,982 13,431
3/96 12,391 13,246 13,744
4/96 12,978 13,955 14,697
5/96 13,369 14,505 15,287
6/96 12,947 13,909 14,755
Total Return
Six Months Inception
Ended to 6/30/96
06/30/96 (unaudited)
(unaudited) 29.50%
2.90%
</TABLE>
Past performance is not predictive of future performance
TOUCHSTONE INTERNATIONAL EQUITY FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone
International Equity Fund A's performance. International equity stocks, as
measured by the MSCI EAFE Index, rose 4.7% while the total return (net of fees,
expenses and the sales charge of 5.75%) for the Touchstone International Equity
Fund A was 2.2%.
As the international equity manager of the Touchstone International Equity Fund
A, BEA Associates attributes the Fund's performance to two factors: (1) strong
stock selection in Europe, especially in France, Italy, Sweden and the United
Kingdom, and (2) the allocation of fund assets to emerging markets such as Latin
America and Israel.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF A $10,000 INVESTMENT
<S> <C> <C> <C>
Touchstone CSA/Wiesenberger
International MSCI EAFE International
Equity Fund A Index Equity Avg.-MF
9/94 $9,425 $10,000 $10,000
10/94 9,548 10,335 10,118
11/94 9,105 9,841 9,616
12/94 8,596 9,905 9,431
1/95 8,040 9,527 8,905
2/95 7,917 9,502 8,921
3/95 8,256 10,097 9,137
4/95 8,586 10,480 9,438
5/95 8,709 10,357 9,620
6/95 8,615 10,178 9,662
7/95 9,048 10,815 10,141
8/95 8,897 10,405 9,972
9/95 9,001 10,611 10,098
10/95 8,709 10,328 9,857
11/95 8,784 10,615 9,907
12/95 9,050 11,049 10,184
1/96 9,399 11,097 10,556
2/96 9,390 11,137 10,601
3/96 9,598 11,377 10,755
4/96 9,806 11,710 11,127
5/96 9,711 11,497 11,188
6/96 9,806 11,565 11,209
Total Return
Six Months Ended 6/30/96
(unaudited) 2.2%
Inception to 6/30/96 (unaudited) -1.9%
</TABLE>
Past performance is not predictive of future performance
1
<PAGE>
TOUCHSTONE GROWTH & INCOME FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone Growth &
Income Fund A's performance. Growth & Income stocks, as measured by the S&P 500
Index, rose 10.1% while the total return (net of fees, expenses and the 5.75%
sales charge) for the Touchstone Growth & Income Fund A was 4.2%.
As the growth and income manager of the Touchstone Growth & Income Fund A, Fort
Washington Investment Advisors continued to employ a strategy of staying fully
invested in a highly diversified portfolio. The stock picking emphasis was on
out-of-favor stocks with stable to improving fundamentals. Throughout the
semiannual period, the fund consisted primarily of large capitalization stocks,
but also contained some representation of mid and small capitalization stocks
that met their out-of-favor screen. Areas of emphasis were (1) financial
services, which were thought to have attractive valuations, good dividend
support and good earnings prospects relative to the market, (2) health care,
which was out-of-favor as investors focused on more economically sensitive
issues, and (3) restructuring companies with significant stock buyback plans.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF A $10,000 INVESTMENT
<S> <C> <C> <C>
Touchstone Growth & S&P 500 CDA/Wiesenberger Growth &
Income Fund A Index Current Income Avg-MF
9/94 $9,425 $10,000 $10,000
10/94 9,576 10,232 10,112
11/94 9,312 9,852 9,753
12/94 9,444 9,997 9,851
1/95 9,651 10,263 9,979
2/95 10,141 10,658 10,329
3/95 10,406 10,973 10,584
4/95 10,519 11,305 10,838
5/95 10,906 11,740 11,189
6/95 11,160 12,015 11,430
7/95 11,585 12,420 11,808
8/95 11,736 12,439 11,884
9/95 12,049 12,962 12,234
10/95 11,992 12,923 12,101
11/95 12,467 13,480 12,582
12/95 12,783 13,741 12,797
1/96 13,190 14,215 13,135
2/96 13,482 14,340 13,282
3/96 13,676 14,480 13,422
4/96 13,998 14,701 13,622
5/96 14,329 15,063 13,879
6/96 14,114 15,124 13,865
Total Return
Six Months Ended 6/30/96
(unaudited) 4.2%
Inception to 6/30/96 (unaudited) 41.1%
</TABLE>
Past performance is not predictive of future performance
TOUCHSTONE BALANCED FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone Balanced
Fund A's performance. Growth and value stocks, as measured by the S&P 500 Index,
rose 10.1% and government and corporate bonds, as measured by the Lehman
Brothers Government/Corporate Index declined 1.9% while the total return (net of
fees, expenses and the sales charge of 5.75%) for the Touchstone Balanced Fund A
was (1.2%).
As the core equity manager of the Touchstone Balanced Fund A, Harbor Capital
Management continued to focus on the technology and financial sectors. In both
sectors the largest holdings have been in high-quality, multi-national market
leader growth companies such as Intel and Microsoft and value stocks such as
Citicorp, Chase Manhattan and Travelers.
As the fixed income manager of the Touchstone Balanced Fund A, Morgan Grenfell
Capital Management has remained focused on issue selection, believing this to be
the best way to consistently add value in the fixed income markets over time.
The fund was well diversified among sectors, issues and maturities and was
comprised of high quality securities that Morgan Grenfell believed offered
superior total return prospects over a variety of market scenarios. Their
holdings were in well structured mortgage-backed securities that have
particularly benefited during this semiannual period of rising interest rates.
Morgan Grenfell continued to favor taxable municipal bonds over generic
corporate issues, believing that they offer superior return prospects.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOUCHSTONE BALANCED S&P 500 LEHMAN BROTHERS GOVERNMENT/ CDA/WIESENBERGER
<S> <C> <C> <C> <C>
Fund A Index Corporate Index Balanced Avg.-MF
9/94 $9,425 $10,000 $10,000 $10,000
10/94 9,538 10,232 9,889 10,054
11/94 9,265 9,852 9,971 9,808
12/94 9,463 9,997 10,037 9,909
1/95 9,520 10,263 10,228 10,023
2/95 9,776 10,658 10,467 10,327
3/95 9,965 10,973 10,537 10,502
4/95 10,178 11,305 10,684 10,691
5/95 10,540 11,740 11,132 11,043
6/95 10,922 12,015 11,221 11,248
7/95 11,218 12,420 11,177 11,505
8/95 11,381 12,439 11,320 11,596
9/95 11,582 12,962 11,435 11,849
10/95 11,282 12,923 11,803 11,825
11/95 11,650 13,480 11,794 12,175
12/95 11,654 13,741 11,968 12,345
1/96 11,982 14,215 12,043 12,558
2/96 12,024 14,340 11,787 12,596
3/96 12,065 14,480 11,688 12,663
4/96 12,034 14,701 11,608 12,769
5/96 12,209 15,063 11,588 12,922
6/96 12,209 15,124 11,743 12,948
Total Return
Six Months Ended 6/30/96
(unaudited) -1.2%
Inception to 6/30/96 (unaudited) 22.1%
</TABLE>
Past performance is not predictive of future performance
2
<PAGE>
TOUCHSTONE INCOME OPPORTUNITY FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone Income
Opportunity Fund A's performance. Corporate high yield bonds, as measured by the
CDA/Wiesenberger Corporate High Yield Mutual Fund Average, rose 4.3%;
international bonds, as measured by the CDA/Wiesenberger International Bond
Mutual Fund Average rose 2.6% while corporate bonds in general, as measured by
the Lehman Brothers Corporate Bond Index, declined 2.1%. Total return (net of
fees, expenses and the sales charge of 4.75%) for the Touchstone Income
Opportunity Fund A was 6.3%.
As the manager of the Touchstone Income Opportunity Fund A, Alliance Capital
Management continued to concentrate its investment activity on U.S. high yield
bonds, emerging markets "Brady" bonds and emerging markets corporate debt during
the first half of 1996. However, investments in U.S. high yield corporate bonds
were increased at the expense of emerging markets corporate debt as the yield to
maturity differential between the two asset classes declined significantly. In a
related move, emerging markets sovereign debt was emphasized at the expense of
emerging markets corporate debt due to continued spread tightening.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOUCHSTONE INCOME LEHMAN BROTHERS CORPORATE CDA/WIESENBERGER INTERNATIONAL
<S> <C> <C> <C>
Opportunity Fund A Bond Index Bond Avg.-MF
9/94 $9,525 $10,000 $10,000
10/94 $9,275 $9,977 $10,083
11/94 $9,350 $9,961 $10,020
12/94 $8,838 $10,043 $9,843
1/95 $8,565 $10,256 $9,800
2/95 $8,565 $10,562 $9,855
3/95 $8,357 $10,638 $10,075
4/95 $9,028 $10,817 $10,327
5/95 $9,585 $11,327 $10,610
6/95 $9,708 $11,429 $10,627
7/95 $9,893 $11,379 $10,706
8/95 $10,102 $11,428 $10,667
9/95 $10,334 $11,699 $10,847
10/95 $10,430 $11,851 $10,933
11/95 $10,527 $12,078 $11,081
12/95 $10,888 $12,277 $11,297
1/96 $11,675 $12,356 $11,434
2/96 $11,373 $12,063 $11,287
3/96 $11,474 $11,960 $11,318
4/96 $11,804 $11,861 $11,429
5/96 $11,953 $11,840 $11,488
6/96 $12,149 $12,014 $11,592
Total Return
Six Months Ended 6/30/96
(unaudited) 6.3%
Inception to 6/30/96 (unaudited) 21.5%
<CAPTION>
CDA/WIESENBERGER CORPORATE
<S> <C>
High Yield Avg.-MF
9/94 $10,000
10/94 $9,993
11/94 $9,866
12/94 $9,875
1/95 $9,948
2/95 $10,212
3/95 $10,308
4/95 $10,552
5/95 $10,807
6/95 $10,844
7/95 $11,021
8/95 $11,045
9/95 $11,171
10/95 $11,260
11/95 $11,333
12/95 $11,509
1/96 $11,748
2/96 $11,813
3/96 $11,779
4/96 $11,872
5/96 $11,969
6/96 $12,007
Total Return
Six Months Ended 6/30/96
(unaudited)
Inception to 6/30/96 (unaudited)
</TABLE>
Past performance is not predictive of future performance
TOUCHSTONE BOND FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone Bond
Fund A's performance. Corporate bonds, as measured by the Lehman Brothers
Aggregate Index, declined 1.2% while the return of the CDA/Wiesenberger
Corporate Bond Mutual Fund Average declined 0.75%. Total return (net of fees,
expenses and the sales charge of 4.75%) for the Touchstone Bond Fund A was
(6.4%).
As the core fixed income manager of the Touchstone Bond Fund A, Fort Washington
Investment Advisors continued its strategy of maintaining a very high quality
portfolio with a bias towards high current yield. In order to create this
defensive posture within the fund, high grade corporate and asset backed
securities continued to be over-weighted versus the index. Maturities were
concentrated in the intermediate part of the yield curve, and the fund continued
to be fully invested with cash levels of approximately 5%.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF A $10,000 INVESTMENT
<S> <C> <C> <C>
Touchstone Bond Lehman Brothers CDA/Wiesenberger Corporate
Fund A Aggregate Index Bond Avg.-MF
9/94 $9,525 $10,000 $10,000
10/94 9,514 9,991 9,986
11/94 9,504 9,969 9,954
12/94 9,551 10,038 9,968
1/95 9,773 10,236 10,124
2/95 9,978 10,480 10,320
3/95 10,046 10,544 10,387
4/95 10,176 10,691 10,525
5/95 10,512 11,105 10,872
6/95 10,571 11,187 10,938
7/95 10,532 11,162 10,925
8/95 10,652 11,296 11,037
9/95 10,742 11,406 11,137
10/95 10,875 11,554 11,263
11/95 11,019 11,728 11,409
12/95 11,172 11,892 11,554
1/96 11,245 11,971 11,637
2/96 11,023 11,763 11,466
3/96 10,937 11,681 11,404
4/96 10,884 11,616 11,357
5/96 10,862 11,592 11,353
6/96 10,982 11,748 11,468
Total Return
Six Months Ended 6/30/96
(unaudited) -6.4%
Inception to 6/30/96 (unaudited) 9.8%
</TABLE>
Past performance is not predictive of future performance
3
<PAGE>
TOUCHSTONE MUNICIPAL BOND FUND A
Over the course of the six months ended June 30, 1996, several investment
management strategies and techniques materially affected the Touchstone
Municipal Bond Fund A's performance. Municipal bonds, as measured by the
CDA/Wiesenberger Municipal Bond Average, declined 0.88% while the return of the
Lehman Brothers Municipals 7-Year Index rose by a mere 0.1%. Total return (net
of fees, expenses and the sales charge of 4.75%) for the Touchstone Municipal
Bond Fund A was (5.2%).
As the manager of the Touchstone Municipal Bond Fund A, Neuberger & Berman
continued to focus on high-quality issues with the primary goal of holding
duration steady. Neuberger & Berman benefited from recent market factors that
lowered volatility in the face of rising interest rates. These important factors
were (1) reduced speculation on tax reform, (2) moderate new issuance of
municipal bonds (spurring demand within a smaller supply), and (3) diminishing
concern with municipal credit quality since the fallout over the Orange County,
California default in 1994.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
VALUE OF A $10,000 INVESTMENT
<S> <C> <C> <C>
Touchstone Municipal Lehman Brothers Municiapls CDA/Wiesenberger Municipal
Bond Fund A 7-year Index Bond Avg.-MF
9/94 $9,525 $10,000 $10,000
10/94 9,514 9,900 9,842
11/94 9,468 9,756 9,669
12/94 9,504 9,903 9,864
1/95 9,581 10,089 10,106
2/95 9,706 10,316 10,365
3/95 9,779 10,423 10,454
4/95 9,835 10,451 10,461
5/95 9,957 10,729 10,746
6/95 9,987 10,719 10,660
7/95 10,046 10,856 10,735
8/95 10,125 10,984 10,842
9/95 10,135 11,026 10,899
10/95 10,205 11,122 11,037
11/95 10,295 11,245 11,207
12/95 10,358 11,304 11,311
1/96 10,480 11,414 11,379
2/96 10,445 11,375 11,312
3/96 10,296 11,264 11,160
4/96 10,281 11,243 11,122
5/96 10,265 11,226 11,124
6/96 10,312 11,313 11,211
Total Return
Six Months Ended 6/30/96
(unaudited) -5.2%
Inception to 6/30/96 (unaudited) 3.1%
</TABLE>
Past performance not predictive of future performance.
4
<PAGE>
SELECT ADVISORS TRUST A
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE TOUCHSTONE TOUCHSTONE TOUCHSTONE TOUCHSTONE
EMERGING INTERNATIONAL GROWTH & TOUCHSTONE INCOME TOUCHSTONE MUNICIPAL
GROWTH EQUITY INCOME BALANCED OPPORTUNITY BOND BOND
FUND A FUND A FUND A FUND A FUND A FUND A FUND A
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in corresponding Select
Advisors Portfolios, at value
(Note 1) $3,797,637 $3,117,426 $2,555,845 $1,832,043 $2,457,033 $ 632,229 $1,534,099
Deferred organization expenses 31,915 31,915 31,915 31,915 31,915 31,915 31,915
Receivable for fund shares sold 5,565 20,700 24,473 2,045 86,825 4,738 8
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total assets 3,835,117 3,170,041 2,612,233 1,866,003 2,575,773 668,882 1,566,022
----------- ----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable to sponsor (Note 1) 26,442 26,191 24,554 25,892 24,158 25,316 25,943
Distribution payable to
shareholders -- -- -- 158 2,820 331 1,447
Payable for fund shares redeemed 95 -- -- 3,000 470 -- --
Other accrued expenses 9,843 9,217 10,651 9,328 10,854 9,490 9,114
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total liabilities 36,380 35,408 35,205 38,378 38,302 35,137 36,504
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS: $3,798,737 $3,134,633 $2,577,028 $1,827,625 $2,537,471 $ 633,745 $1,529,518
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding 302,321 302,019 178,151 155,684 242,716 62,955 154,079
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net asset value and redemption
price per share $ 12.57 $ 10.38 $ 14.47 $ 11.74 $ 10.45 $ 10.07 $ 9.93
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
Offering price per share $ 13.34 $ 11.01 $ 15.35 $ 12.46 $ 10.97 $ 10.57 $ 10.43
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
Maximum sales load 5.75% 5.75% 5.75% 5.75% 4.75% 4.75% 4.75%
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME ALLOCATED FROM
CORRESPONDING PORTFOLIO (NOTE 1):
Interest income $ 5,756 $ 5,453 $ 2,286 $ 23,347 $ 101,094 $ 19,385 $ 35,420
Dividend income (a) 16,964 34,817 16,402 6,896 -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 22,720 40,270 18,688 30,243 101,094 19,385 35,420
----------- ----------- ----------- ----------- ----------- ----------- -----------
EXPENSES:
Allocated portfolio expenses 26,343 23,971 6,599 12,520 11,738 2,202 9,174
Transfer agent 17,893 16,737 18,778 16,108 17,348 15,147 11,877
Blue Sky 8,426 8,549 6,137 8,426 8,429 6,141 8,430
Amortization of organization
expenses (Note 1) 4,819 4,819 4,819 4,819 4,819 4,819 4,819
Audit 4,238 4,238 4,237 4,246 5,237 3,745 3,738
Distribution (Note 2) 4,135 3,591 2,573 2,070 2,175 717 1,809
Sponsor fee (Note 2) 3,277 2,844 2,002 1,638 1,723 558 1,437
Printing 2,484 2,479 2,475 2,471 2,472 2,463 2,469
Trustee fees (Note 2) 503 408 295 239 249 79 209
Miscellaneous 1,055 802 379 471 554 120 514
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total expenses 73,173 68,438 48,294 53,008 54,744 35,991 44,476
Waiver of sponsor fees (Note
2) (3,277) (2,844) (2,002) (1,638) (1,723) (558) (1,437)
Reimbursement from sponsor
(Note 3) (45,320) (42,846) (33,165) (40,314) (42,684) (32,920) (35,493)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET EXPENSES 24,576 22,748 13,127 11,056 10,337 2,513 7,546
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (1,856) 17,522 5,561 19,187 90,757 16,872 27,874
----------- ----------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM PORTFOLIO:
Net realized gain (loss) from
Portfolio (b) 197,910 97,765 183,782 54,481 51,649 (3,351) 1,163
Net change in unrealized
appreciation (depreciation)
from Portfolio 91,618 109,976 588 280 47,375 (22,695) (36,867)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) FROM PORTFOLIO 289,528 207,741 184,370 54,761 99,024 (26,046) (35,704)
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 287,672 $ 225,263 $ 189,931 $ 73,948 $ 189,781 ($ 9,174) ($ 7,830)
----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
- ------------------------------
(a) Net of foreign tax withholding of $75 for the Touchstone Emerging Growth
Fund A and $4,897 for the Touchstone International Equity Fund A.
(b) Includes foreign currency transactions losses of $5,013 for the Touchstone
International Equity Fund A.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
SELECT ADVISORS TRUST A
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE
TOUCHSTONE INTERNATIONAL EQUITY FUND
EMERGING GROWTH FUND A A
------------------------- -------------------------
FOR THE SIX FOR THE SIX
MONTHS MONTHS
ENDED FOR THE ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 1996 DECEMBER
(UNAUDITED) 31, 1995 (UNAUDITED) 31, 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (1,856) $ (979) $ 17,522 $ 2,703
Net realized gain (loss) from
Portfolio (a) 197,910 171,782 97,765 (212,640)
Net change in unrealized
appreciation (depreciation) from
Portfolio 91,618 287,639 109,976 342,049
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 287,672 458,442 225,263 132,112
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income -- (6,457) -- (5,992)
Net realized capital gain -- (175,592) -- --
Distributions in excess of net
investment income -- -- -- --
----------- ----------- ----------- -----------
Total dividends and distributions -- (182,049) -- (5,992)
----------- ----------- ----------- -----------
SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold 1,024,997 1,120,072 313,016 216,977
Reinvestment of dividends -- 106,721 -- 5,973
Cost of shares redeemed (33,965) (20,882) (20,630) (13,895)
----------- ----------- ----------- -----------
Net increase from share
transactions: 991,032 1,205,911 292,386 209,055
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 1,278,704 1,482,304 517,649 335,175
NET ASSETS:
Beginning of period 2,520,033 1,037,729 2,616,984 2,281,809
----------- ----------- ----------- -----------
End of period $3,798,737 $2,520,033 $3,134,633 $2,616,984
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
NET ASSETS CONSIST OF:
Paid-in capital $3,211,492 $2,223,942 $2,981,274 $2,692,370
Undistributed net investment
income 1,711 85 18,516 2,525
Accumulated net realized gain
(loss) from Portfolio 163,064 (34,846) (112,027) (214,805)
Net unrealized appreciation
(depreciation) from Portfolio 422,470 330,852 246,870 136,894
----------- ----------- ----------- -----------
Net assets applicable to shares
outstanding $3,798,737 $2,520,033 $3,134,633 $2,616,984
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
SHARES OUTSTANDING (NOTE 4):
Shares sold 86,427 108,754 30,377 23,753
Reinvestment of dividends -- 9,263 -- 623
----------- ----------- ----------- -----------
86,427 118,017 30,377 24,376
Shares redeemed (2,816) (1,980) (1,465) (1,543)
----------- ----------- ----------- -----------
Net increase 83,611 116,037 28,912 22,833
Beginning of period 218,710 102,673 273,107 250,274
----------- ----------- ----------- -----------
End of period 302,321 218,710 302,019 273,107
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
- ----------------------------------
(a) The Touchstone International Equity Fund A had foreign currency transactions
losses of $5,013 and $4,532 for the periods ended June 30, 1996 and December
31, 1995, respectively.
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE
BOND FUND
TOUCHSTONE TOUCHSTONE TOUCHSTONE A
GROWTH & INCOME FUND A BALANCED FUND A INCOME OPPORTUNITY FUND A ---------
------------------------- ------------------------- ------------------------- FOR THE
FOR THE SIX FOR THE SIX FOR THE SIX SIX
MONTHS MONTHS MONTHS MONTHS
ENDED FOR THE ENDED FOR THE ENDED FOR THE ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30,
1996 DECEMBER 1996 DECEMBER 1996 DECEMBER 1996
(UNAUDITED) 31, 1995 (UNAUDITED) 31, 1995 (UNAUDITED) 31, 1995 (UNAUDITED)
----------- ----------- ----------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 5,561 $ 2,678 $ 19,187 $ 29,352 $ 90,757 $ 135,794 $ 16,872
Net realized gain (loss) from
Portfolio (a) 183,782 31,237 54,481 86,073 51,649 4,940 (3,351)
Net change in unrealized
appreciation (depreciation) from
Portfolio 588 106,320 280 130,015 47,375 97,430 (22,695)
----------- ----------- ----------- ----------- ----------- ----------- ---------
Net increase (decrease) in net
assets resulting from operations 189,931 140,235 73,948 245,440 189,781 238,164 (9,174)
----------- ----------- ----------- ----------- ----------- ----------- ---------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (8,554) (11,277) (20,924) (38,582) (88,970) (144,517) (20,319)
Net realized capital gain -- (25,509) -- (74,472) -- -- --
Distributions in excess of net
investment income -- -- -- -- -- (380) --
----------- ----------- ----------- ----------- ----------- ----------- ---------
Total dividends and distributions (8,554) (36,786) (20,924) (113,054) (88,970) (144,897) (20,319)
----------- ----------- ----------- ----------- ----------- ----------- ---------
SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold 966,139 1,442,665 265,583 263,559 1,165,518 219,545 155,897
Reinvestment of dividends 8,322 36,552 20,656 112,647 82,616 143,556 18,618
Cost of shares redeemed (78,846) (102,362) (13,578) (7,501) (180,871) (12,911) (33,897)
----------- ----------- ----------- ----------- ----------- ----------- ---------
Net increase from share
transactions: 895,615 1,376,855 272,661 368,705 1,067,263 350,190 140,618
----------- ----------- ----------- ----------- ----------- ----------- ---------
TOTAL INCREASE IN NET ASSETS 1,076,992 1,480,304 325,685 501,091 1,168,074 443,457 111,125
NET ASSETS:
Beginning of period 1,500,036 19,732 1,501,940 1,000,849 1,369,397 925,940 522,620
----------- ----------- ----------- ----------- ----------- ----------- ---------
End of period $2,577,028 $1,500,036 $1,827,625 $1,501,940 $2,537,471 $1,369,397 $633,745
----------- ----------- ----------- ----------- ----------- ----------- ---------
----------- ----------- ----------- ----------- ----------- ----------- ---------
NET ASSETS CONSIST OF:
Paid-in capital $2,279,916 $1,387,783 $1,633,044 $1,363,865 $2,423,690 $1,359,909 $643,722
Undistributed net investment
income 643 154 1,745 -- 4,889 (380) 140
Accumulated net realized gain
(loss) from Portfolio 189,390 5,608 60,676 6,195 4,355 (47,294) (2,033)
Net unrealized appreciation
(depreciation) from Portfolio 107,079 106,491 132,160 131,880 104,537 57,162 (8,084)
----------- ----------- ----------- ----------- ----------- ----------- ---------
Net assets applicable to shares
outstanding $2,577,028 $1,500,036 $1,827,625 $1,501,940 $2,537,471 $1,369,397 $633,745
----------- ----------- ----------- ----------- ----------- ----------- ---------
----------- ----------- ----------- ----------- ----------- ----------- ---------
SHARES OUTSTANDING (NOTE 4):
Shares sold 68,921 117,930 22,676 22,763 112,845 23,359 15,178
Reinvestment of dividends 584 2,803 1,763 9,900 8,020 15,358 1,822
----------- ----------- ----------- ----------- ----------- ----------- ---------
69,505 120,733 24,439 32,663 120,865 38,717 17,000
Shares redeemed (5,475) (8,581) (1,155) (658) (17,484) (1,382) (3,283)
----------- ----------- ----------- ----------- ----------- ----------- ---------
Net increase 64,030 112,152 23,284 32,005 103,381 37,335 13,717
Beginning of period 114,121 1,969 132,400 100,395 139,335 102,000 49,238
----------- ----------- ----------- ----------- ----------- ----------- ---------
End of period 178,151 114,121 155,684 132,400 242,716 139,335 62,955
----------- ----------- ----------- ----------- ----------- ----------- ---------
----------- ----------- ----------- ----------- ----------- ----------- ---------
<CAPTION>
TOUCHSTONE
MUNICIPAL BOND FUND A
-------------------------
FOR THE SIX
FOR THE MONTHS
YEAR ENDED FOR THE
ENDED JUNE 30, YEAR ENDED
DECEMBER 1996 DECEMBER
31, 1995 (UNAUDITED) 31, 1995
--------- ----------- -----------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 14,138 $ 27,874 $ 59,258
Net realized gain (loss) from
Portfolio (a) 3,168 1,163 (1,974)
Net change in unrealized
appreciation (depreciation) from
Portfolio 14,680 (36,867) 48,516
--------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 31,986 (7,830) 105,800
--------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (22,764) (33,091) (68,265)
Net realized capital gain (1,750) -- --
Distributions in excess of net
investment income -- -- (191)
--------- ----------- -----------
Total dividends and distributions (24,514) (33,091) (68,456)
--------- ----------- -----------
SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold 483,371 197,859 225,677
Reinvestment of dividends 22,509 24,960 58,825
Cost of shares redeemed (7,078) (3,559) (1,064)
--------- ----------- -----------
Net increase from share
transactions: 498,802 219,260 283,438
--------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 506,274 178,339 320,782
NET ASSETS:
Beginning of period 16,346 1,351,179 1,030,397
--------- ----------- -----------
End of period $522,620 $1,529,518 $1,351,179
--------- ----------- -----------
--------- ----------- -----------
NET ASSETS CONSIST OF:
Paid-in capital $506,586 $1,532,914 $1,317,136
Undistributed net investment
income 105 (1,926) (191)
Accumulated net realized gain
(loss) from Portfolio 1,318 (839) (2,002)
Net unrealized appreciation
(depreciation) from Portfolio 14,611 (631) 36,236
--------- ----------- -----------
Net assets applicable to shares
outstanding $522,620 $1,529,518 $1,351,179
--------- ----------- -----------
--------- ----------- -----------
SHARES OUTSTANDING (NOTE 4):
Shares sold 46,122 19,527 22,452
Reinvestment of dividends 2,132 2,480 5,800
--------- ----------- -----------
48,254 22,007 28,252
Shares redeemed (670) (354) (104)
--------- ----------- -----------
Net increase 47,584 21,653 28,148
Beginning of period 1,654 132,426 104,278
--------- ----------- -----------
End of period 49,238 154,079 132,426
--------- ----------- -----------
--------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
SELECT ADVISORS TRUST A
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE EMERGING GROWTH
FUND A
----------------------------
FOR THE
FOR THE PERIOD
SIX OCTOBER
MONTHS FOR THE 31,
ENDED YEAR 1994 (A)
SELECTED DATA FOR A SHARE JUNE 30, ENDED TO
OUTSTANDING THROUGHOUT THE 1996 DECEMBER DECEMBER
PERIOD: (UNAUDITED) 31, 1995 31, 1994
--------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $11.52 $10.11 $10.00
-------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.01 (0.01) 0.16
Net realized and unrealized
gain (loss) on investments 1.04 2.29 0.11
-------- -------- --------
Total from investment
operations 1.05 2.28 0.27
-------- -------- --------
LESS: DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -- (0.03) (0.15)
Net capital gain -- (0.84) (0.01)
-------- -------- --------
Total dividends and
distributions -- (0.87) (0.16)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $12.57 $11.52 $10.11
-------- -------- --------
-------- -------- --------
TOTAL RETURN (C) 9.11% 22.56% 2.72%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(000's) $3,799 $2,520 $1,038
Ratios to average net
assets (d):
Expenses 1.50% 1.50% 1.75%
Net investment income (loss) (0.11%) (0.05%) 6.10%
TOUCHSTONE INCOME
OPPORTUNITY FUND A
----------------------------
FOR THE
FOR THE PERIOD
SIX OCTOBER
MONTHS FOR THE 31,
ENDED YEAR 1994 (A)
SELECTED DATA FOR A SHARE JUNE 30, ENDED TO
OUTSTANDING THROUGHOUT THE 1996 DECEMBER DECEMBER
PERIOD: (UNAUDITED) 31, 1995 31, 1994
NET ASSET VALUE, BEGINNING OF
PERIOD $ 9.83 $ 9.08 $10.00
-------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.52 1.19 0.22
Net realized and unrealized
gain (loss) on investments 0.60 0.77 (0.94)
-------- -------- --------
Total from investment
operations 1.12 1.96 (0.72)
-------- -------- --------
LESS: DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (0.50) (1.21) (0.20)
Net capital gain -- -- --
-------- -------- --------
Total dividends and
distributions (0.50) (1.21) (0.20)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $10.45 $ 9.83 $ 9.08
-------- -------- --------
-------- -------- --------
TOTAL RETURN (C) 11.58% 23.19% (7.20%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(000's) $2,537 $1,369 $ 926
Ratios to average net
assets (d):
Expenses 1.20% 1.20% 1.45%
Net investment income 10.51% 12.42% 8.60%
</TABLE>
- --------------------------
(a) Commencement of operations.
(b) Per share amounts have been calculated using the average share method, which
more appropriately represents the per share data for the period as the use
of the undistributed method does not accord with the results of operations.
(c) Total return is not annualized. Total return is calculated without a sales
charge assuming a purchase of shares on the first day and a sale of shares
on the last day of the period, and reinvestment of all dividends and
distributions.
(d) Ratios are annualized. Includes the Fund's proportionate share of the
corresponding Portfolio's expenses. If the waiver and reimbursement had not
been in place for the periods listed and after consideration of state
expense limitations, the ratios of expenses to average net assets would have
been 2.50% for each Fund.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOUCHSTONE INTERNATIONAL TOUCHSTONE GROWTH & INCOME
EQUITY FUND A FUND A TOUCHSTONE BALANCED FUND A
---------------------------- ---------------------------- ----------------------------
FOR THE FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
SIX OCTOBER SIX FOR THE OCTOBER SIX OCTOBER
MONTHS FOR THE 31, MONTHS YEAR 31, MONTHS FOR THE 31,
ENDED YEAR 1994 (A) ENDED ENDED 1994 (A) ENDED YEAR 1994 (A)
JUNE 30, ENDED TO JUNE 30, DECEMBER TO JUNE 30, ENDED TO
1996 DECEMBER DECEMBER 1996 31, DECEMBER 1996 DECEMBER DECEMBER
(UNAUDITED) 31, 1995 31, 1994 (UNAUDITED) 1995 (B) 31, 1994 (UNAUDITED) 31, 1995 31, 1994
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 9.58 $ 9.12 $10.00 $13.14 $10.02 $10.00 $11.34 $ 9.97 $10.00
-------- -------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.05 0.21 -- 0.06 0.05 0.86 0.15 0.31 0.08
Net realized and unrealized
gain (loss) on investments 0.75 0.47 (0.88) 1.33 3.46 (0.84) 0.39 1.99 (0.05)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations 0.80 0.68 (0.88) 1.39 3.51 0.02 0.54 2.30 0.03
-------- -------- -------- -------- -------- -------- -------- -------- --------
LESS: DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -- (0.22) -- (0.06) (0.16) -- (0.14) (0.33) (0.06)
Net capital gain -- -- -- -- (0.23) -- -- (0.60) --
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions -- (0.22) -- (0.06) (0.39) -- (0.14) (0.93) (0.06)
-------- -------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $10.38 $ 9.58 $ 9.12 $14.47 $13.14 $10.02 $11.74 $11.34 $ 9.97
-------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- --------
TOTAL RETURN (C) 8.35% 5.29% (8.80%) 10.59% 35.14% 0.20% 4.77% 23.24% 0.30%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period
(000's) $3,135 $2,617 $2,282 $2,577 $1,500 $ 20 $1,828 $1,502 $1,001
Ratios to average net
assets (d):
Expenses 1.60% 1.60% 1.85% 1.30% 1.30% 1.55% 1.35% 1.35% 1.60%
Net investment income (loss) 1.23% 0.11% (0.36%) 0.55% 0.56% 0.56% 2.34% 2.39% 2.75%
TOUCHSTONE BOND TOUCHSTONE MUNICIPAL
FUND A BOND FUND A
---------------------------- ----------------------------
FOR THE FOR THE
FOR THE PERIOD FOR THE PERIOD
SIX FOR THE OCTOBER SIX OCTOBER
MONTHS YEAR 31, MONTHS FOR THE 31,
ENDED ENDED 1994 (A) ENDED YEAR 1994 (A)
JUNE 30, DECEMBER TO JUNE 30, ENDED TO
1996 31, DECEMBER 1996 DECEMBER DECEMBER
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD: (UNAUDITED) 1995 (B) 31, 1994 (UNAUDITED) 31, 1995 31, 1994
NET ASSET VALUE, BEGINNING OF PERIOD $10.61 $9.88 $10.00 $10.20 $9.88 $10.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.36 0.56 1.15 0.21 0.53 0.12
Net realized and unrealized gain (loss) on investments (0.54 ) 1.07 (1.12 ) (0.25 ) 0.34 (0.14 )
-------- -------- -------- -------- -------- --------
Total from investment operations (0.18) 1.63 0.03 (0.04) 0.87 (0.02)
-------- -------- -------- -------- -------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.36) (0.86) (0.15) (0.23) (0.55) (0.10)
Net capital gain -- (0.04) -- -- -- --
-------- -------- -------- -------- -------- --------
Total dividends and distributions (0.36) (0.90) (0.15) (0.23) (0.55) (0.10)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $10.07 $10.61 $ 9.88 $ 9.93 $10.20 $ 9.88
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
TOTAL RETURN (C) 3.88% 16.95% 0.28% (0.45%) 8.96% (0.21%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) $ 634 $ 523 $ 16 $1,530 $1,351 $1,030
Ratios to average net assets (d):
Expenses 0.90% 0.90% 1.15% 1.05% 1.05% 1.30%
Net investment income 6.03% 6.21% 5.58% 3.87% 4.75% 4.39%
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
SELECT ADVISORS TRUST A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Select Advisors Trust A (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end management
investment company which was organized as a Massachusetts business trust on
February 7, 1994.
The Trust consists of eight funds (each, a "Fund"): Touchstone Emerging
Growth Fund A (the "Emerging Growth Fund"), Touchstone International Equity Fund
A (the "International Equity Fund"), Touchstone Growth & Income Fund A (the
"Growth & Income Fund"), Touchstone Balanced Fund A (the "Balanced Fund"),
Touchstone Income Opportunity Fund A (the "Income Opportunity Fund"), Touchstone
Bond Fund A (the "Bond Fund"), Touchstone Municipal Bond Fund A (the "Municipal
Bond Fund") and Touchstone Standby Income Fund (the "Standby Income Fund"). The
Standby Income Fund is included in a separate report.
The Trust seeks to achieve the investment objectives of each Fund (except
Standby Income Fund) by investing all the investable assets of the Fund in a
corresponding Portfolio of Select Advisors Portfolios (the "Portfolio Trust"),
an open-end management investment company. Each Portfolio has the same
investment objectives as the corresponding Fund. These Portfolios are,
respectively, Emerging Growth Portfolio, International Equity Portfolio, Growth
& Income Portfolio, Balanced Portfolio, Income Opportunity Portfolio, Bond
Portfolio, and Municipal Bond Portfolio.
The value of each Fund's investment in the corresponding Portfolio reflects
the Fund's proportionate interest in the net assets of the Portfolio at June 30,
1996.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL GROWTH & INCOME
GROWTH EQUITY INCOME BALANCED OPPORTUNITY
------------ --------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Percentage interest in corresponding
Portfolio 70.8% 52.0% 13.7% 52.8% 56.2%
<CAPTION>
MUNICIPAL
BOND BOND
---------- -------------
<S> <C> <C>
Percentage interest in corresponding
Portfolio 5.0% 56.5%
</TABLE>
As of June 30, 1996, Touchstone Advisors, Inc., a subsidiary of
Western-Southern Life Assurance Company ("Western-Southern"), and
Western-Southern, owned 36.0%, 82.8%, 7.8%, 69.7%, 47.7%, 21.4%, and 68.7% of
the Emerging Growth Fund, the International Equity Fund, the Growth & Income
Fund, the Balanced Fund, the Income Opportunity Fund, the Bond Fund, and the
Municipal Bond Fund, respectively.
The financial statements of each Portfolio, including the schedule of
investments, are included elsewhere in this report and should be read in
conjunction with the corresponding Fund's financial statements.
The accounting policies are in conformity with generally accepted accounting
principles ("GAAP") for investment companies. The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the related amounts and disclosures in the financial
statements. Actual results could differ from these estimates.
The following is a summary of the significant accounting policies of the
funds:
a) INVESTMENT VALUATION. Valuation of investments by each Portfolio is
discussed in Note 1 of the Portfolio Trust's Notes to Financial Statements which
are included elsewhere in this report.
b) INVESTMENT INCOME. Each Fund records its share of the corresponding
Portfolio's net investment income and realized and unrealized gains and losses
and adjusts its investment in the corresponding Portfolio each day. All the net
investment income and realized and unrealized gains and losses of each Portfolio
are allocated among the corresponding Fund and the other investors in the
Portfolio at the time of such determination.
c) DIVIDENDS AND DISTRIBUTIONS. Substantially all of the net investment
income of the Growth & Income Fund, the Income Opportunity Fund, the Bond Fund,
and the Municipal Bond Fund is declared as dividends and paid monthly.
Substantially all of the net investment income of the Balanced Fund is declared
as dividends and paid quarterly. Substantially all of the net investment income
of the Emerging Growth Fund and the International Equity Fund is declared as
dividends and paid annually. Distributions to shareholders of net realized
capital gains, if any, are declared and paid annually. Dividends and
distributions are recorded on ex-dividend date and are reinvested at net asset
value.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to non-deductible organization
costs.
10
<PAGE>
SELECT ADVISORS TRUST A
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital. Undistributed
net investment income may include temporary book and tax basis differences which
will reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
d) ORGANIZATION EXPENSE. Organization expenses were deferred and are being
amortized by each Fund on a straight-line basis over a five-year period from
commencement of operations. Each Fund's organizational fees payable includes
fees and expenses payable to Touchstone Advisors, Inc. of $46,948. This amount
is reduced by any amounts receivable by each Fund from Touchstone Advisors, Inc.
The amount paid by the Trust on any redemption by Touchstone Advisors, Inc. or
any other then-current holder of the organizational seed capital shares
("Initial Shares") of the Fund will be reduced by a portion of any unamortized
organization expenses of the Fund and the corresponding Portfolio, determined by
the proportion of the number of the Initial Shares of the Fund redeemed to the
number of the Initial Shares of the Fund then outstanding after taking into
account any prior redemptions of the Initial Shares of the Fund. The amount of
such reduction in excess of the unamortized organization expenses of the Fund,
if any, shall be contributed by the Fund to the corresponding Portfolio.
e) FEDERAL TAXES. Each Fund of the Trust is treated as a separate entity
for federal income tax purposes. Each Fund's policy is to comply with the
provisions of the Internal Revenue Code of 1986, as amended, applicable to
regulated investment companies and to distribute substantially all of its
income, and net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income tax is necessary. The
following Funds have capital loss carryforwards expiring in December 2002 and
2003.
<TABLE>
<CAPTION>
2002 2003
--------- ----------
<S> <C> <C>
International Equity Fund A $ 401 $ 134,739
Income Opportunity Fund A -- 47,294
Municipal Bond Fund A 28 393
</TABLE>
f) EXPENSES. Expenses incurred by the Trust with respect to any two or
more funds in the Trust are prorated to each Fund in the Trust, except where
allocations of direct expenses to each Fund can otherwise be made fairly.
Expenses directly attributable to a Fund are charged to that Fund.
2. TRANSACTIONS WITH AFFILIATES
a) DISTRIBUTION AND SERVICE PLAN. Under the Trust's Distribution and
Service Plan in accordance with Rule 12b-1 under the Act, the Trust retains
Touchstone Securities, Inc. ("Distributor"), a subsidiary of Western-Southern,
as a service agent of the Trust and as the principal underwriter of the shares
of each Fund. Each fund will pay a service fee to the Distributor equal on an
annual basis of up to 0.25% of that Fund's average daily net assets. The
Distributor may also use the distribution fees received from each Fund to
otherwise promote the sale of shares of the Funds to other than current
shareholders and for sales literature or other promotional activities.
b) SPONSOR. The Trust, on the behalf of each Fund, has entered into a
Sponsor Agreement with Touchstone Advisors, Inc. (the "Sponsor"), an affiliate
of the Distributor. The Sponsor provides oversight of the various service
providers to the Trust, including the Trust's administrator, custodian and
transfer agent. The Sponsor receives a fee from each Fund equal on an annual
basis to 0.20% of the average daily net assets of that Fund. The Sponsor has
advised the Trust that it will waive all fees under the Sponsor Agreement
through April 30, 1997.
c) TRUSTEES. Each Trustee who is not an "interested person" (as defined by
the Act) of the Trust receives in aggregate $5,000 annually plus $1,000 per
meeting attended, as well as reimbursement for reasonable out-of-pocket
expenses, from the Trust and from Select Advisors Trust C, Select Advisors
Portfolios, and Select Advisors Variable Insurance Trust, which are included in
separate reports.
3. EXPENSE REIMBURSEMENTS
The Sponsor has agreed to reimburse each Fund so that, following such
reimbursement, the aggregate total operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) of each Fund including
the Fund's proportionate share of expenses of the corresponding Portfolio are
not greater, on an annual basis, than the percentage of average daily net assets
of the Fund listed below for the period ended June 30, 1996.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL GROWTH & INCOME
GROWTH EQUITY INCOME BALANCED OPPORTUNITY
------------ --------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Voluntary expense limit 1.50% 1.60% 1.30% 1.35% 1.20%
<CAPTION>
MUNICIPAL
BOND BOND
---------- -------------
<S> <C> <C>
Voluntary expense limit 0.90% 1.05%
</TABLE>
4. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trust to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series. To
date, the Trust has authorized shares of eight series. Standby Income Fund is
included in a separate report.
11
<PAGE>
[LOGO]
T O U C H S T O N E
-------------------------------------------------------
THE TOUCHSTONE FAMILY OF FUNDS
-------------------------------------------------------
SELECT ADVISORS PORTFOLIOS
( EMERGING GROWTH PORTFOLIO
( INTERNATIONAL EQUITY PORTFOLIO
( GROWTH & INCOME PORTFOLIO
( BALANCED PORTFOLIO
( INCOME OPPORTUNITY PORTFOLIO
( BOND PORTFOLIO
( MUNICIPAL BOND PORTFOLIO
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
JUNE 30, 1996
<PAGE>
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- ----------
COMMON STOCKS (82.8%)
<C> <S> <C>
AIRLINES (2.0%)
2,300 America West Airlines Class B........ $ 50,600
900 Continental Airlines, Inc. Class B... 55,575
----------
106,175
----------
BANKING & FINANCE (1.6%)
1,850 First Security Corp.................. 44,400
2,400 Glendale Federal Bank, FSB........... 43,500
----------
87,900
----------
BROADCAST & MEDIA (3.7%)
1,200 Central Newspapers Class A........... 45,000
1,700 Lee Enterprises, Inc................. 40,163
2,600 Sinclair Broadcast Group, Inc.*...... 113,100
----------
198,263
----------
CHEMICALS (0.7%)
1,700 M. A. Hanna Co....................... 35,487
----------
COMPUTER EQUIPMENT & DATA PROCESSING
(14.2%)
1,100 3Com Corp............................ 50,325
3,500 Alpha Industries, Inc.*.............. 31,062
1,900 Axent Technologies, Inc.............. 31,350
3,000 Computervision Corp.*................ 30,000
2,100 EG&G................................. 44,888
1,110 First Data Corp...................... 88,384
1,600 Fiserv, Inc.......................... 48,000
2,500 Gerber Scientific, Inc............... 40,313
1,600 IDX Systems Corp..................... 62,400
2,700 Intergraph Corp.*.................... 32,738
3,500 Lumisys, Inc......................... 56,875
3,000 Scitex Corp.*........................ 51,750
700 Sterling Software, Inc.*............. 53,900
2,300 Trident International, Inc........... 50,025
900 Wallace Computer Services, Inc....... 53,775
800 Xylan Corp........................... 37,200
----------
762,985
----------
CONSUMER & OFFICE PRODUCTS (4.6%)
1,100 Alberto Culver Co. Class A........... 44,000
2,000 Armor All Products Corp.............. 29,750
1,400 Corporate Express, Inc............... 56,000
2,000 First Brands, Inc.................... 54,000
2,300 Resound Corp......................... 29,325
1,200 Stanhome, Inc........................ 31,800
----------
244,875
----------
ELECTRICAL EQUIPMENT (3.2%)
1,700 Elsag Bailey......................... 45,475
1,000 LSI Logic............................ 26,000
1,100 National Service Industries.......... 43,038
1,400 Verifone, Inc........................ 59,150
----------
173,663
----------
FOODS & BEVERAGES (2.2%)
1,300 Dean Foods Co........................ 32,175
2,700 Quality Dining, Inc.*................ 88,425
----------
120,600
----------
HEALTHCARE (6.6%)
1,800 Apria Healthcare Group*.............. 56,475
900 HCIA, Inc.*.......................... 56,700
600 Osteotech, Inc....................... 4,350
2,000 Quorum Health Group, Inc.*........... 52,750
3,000 Summit Care Corp.*................... 66,000
6,000 Transcend Services, Inc.............. $ 63,750
1,800 Vertex Pharmaceuticals, Inc.*........ 54,675
----------
354,700
----------
HEAVY INDUSTRY (7.3%)
1,700 Albany International Corp............ 38,462
800 Bandag, Inc.......................... 37,500
2,300 BW/IP, Inc........................... 43,700
3,600 Calgon Carbon Corp................... 48,600
2,400 Calmat, Inc.......................... 43,500
700 Harsco Corp.......................... 47,075
1,900 Martin Marietta Materials, Inc.*..... 46,075
1,800 Southdown, Inc.*..................... 42,300
1,300 Trinity Industries, Inc.............. 44,200
----------
391,412
----------
INSURANCE (3.0%)
1,000 Arthur J. Gallagher & Co............. 32,000
900 Hartford Steam Boiler Insurance...... 44,213
2,500 Western National Corp................ 45,938
3,400 Willis Corroon Group ADR............. 40,375
----------
162,526
----------
MOTOR VEHICLES & EQUIPMENT (1.6%)
1,000 Danaher Corp......................... 43,500
1,800 Standard Products Co................. 41,850
----------
85,350
----------
OIL SERVICE (4.0%)
1,700 BJ Services Co....................... 59,713
800 Halliburton, Inc..................... 44,400
3,300 Nabors Industries, Inc.*............. 53,625
1,900 Weatherford Enterra, Inc............. 57,000
----------
214,738
----------
PETROLEUM & NATURAL GAS (3.5%)
2,500 Cabot Oil & Gas Corp. Class A........ 43,437
1,300 Equitable Resources, Inc............. 36,725
4,300 Natural Gas Clearinghouse............ 64,500
3,000 Quaker State Corp.................... 45,000
----------
189,662
----------
RETAIL (8.1%)
5,800 Charming Shoppes, Inc................ 40,962
2,500 DiMon, Inc........................... 46,250
3,000 Fingerhut Companies, Inc............. 46,875
1,400 Fred Meyer, Inc...................... 41,125
1,400 LA-Z-Boy Chair Co.................... 42,175
1,600 Herman Miller, Inc................... 49,000
3,700 Stride Rite Corp..................... 30,525
1,500 Sunglass Hut, Inc.................... 36,562
1,400 Waban, Inc.*......................... 33,425
4,000 Zale Corp.*.......................... 67,500
----------
434,399
----------
SERVICES (4.9%)
1,700 CRA Managed Care, Inc................ 76,075
1,300 Healthcare Compare Corp.*............ 63,375
1,800 Republic Industries, Inc............. 52,425
1,200 Service Corp. International*......... 69,000
----------
260,875
----------
TELECOMMUNICATIONS (9.6%)
500 Ascend Communications, Inc........... 28,125
7,400 Compression Labs..................... 42,550
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- ----------
COMMON STOCKS--CONTINUED
<C> <S> <C>
TELECOMMUNICATIONS--CONTINUED
3,400 Metricom, Inc........................ $ 53,550
600 Netscape Communications Corp......... 37,350
1,700 Octel Communication Corp.*........... 33,575
900 Premisys Communications, Inc......... 54,900
1,700 Tyco Lab............................. 69,275
2,700 USCS International, Inc.............. 51,975
2,400 Videoserver, Inc..................... 93,600
1,800 Winstar Communications, Inc.......... 44,887
----------
509,787
----------
TRANSPORTATION (2.0%)
1,600 Alexander & Baldwin, Inc.*........... 38,600
1,900 J. B. Hunt Transportation Services,
Inc................................ 39,662
1,600 Overseas Shipholding Group, Inc...... 29,000
----------
107,262
----------
TOTAL COMMON STOCKS (COST $3,823,934)........... 4,440,659
----------
TOTAL INVESTMENTS AT VALUE (82.8%)
(COST $3,823,934)(a)............................ $4,440,659
CASH AND OTHER ASSETS
NET OF LIABILITIES (17.2%)...................... 919,919
----------
NET ASSETS (100.0%)............................. $5,360,578
----------
----------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is
$3,823,934, the aggregate gross unrealized appreciation
is $762,650, and the aggregate gross unrealized
depreciation is $145,925, resulting in net unrealized
appreciation of $616,725.
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------- ----------
COMMON STOCKS (93.3%)
<C> <S> <C>
ARGENTINA (0.0%)
1 Compania Naviera Perez Companc S.A.
(Petroleum & Natural Gas)........ $ 7
----------
AUSTRALIA (1.8%)
2,029 Broken Hill Proprietary (Mining)... 28,012
1,720 CRA Ltd. (Materials)............... 26,442
600 News Corp Ltd. ADR (Publishing).... 14,100
500 News Corp Pref Shares ADR
(Publishing)..................... 10,063
4,000 Western Mining Corp., Ltd.
(Materials)...................... 28,609
----------
107,226
----------
BRAZIL (4.3%)
300 Centrais Electricas Brasilieras ADR
(Electric Utilities)............. 4,362
1,900 Companhia Siderugica Nacional ADR
(Steel).......................... 49,400
2,050 Companhia Vale do Rio Doce S.A.
(Mining)......................... 41,150
2,200 Refrigeracao Parana S.A. ADR
(Consumer Goods)................. 27,389
900 Telecomunicacoes Basileiras ADR
(Telecommunications)............. 62,535
6,500 Usinas Siderugicas de Minas Gerais
S.A. ADR 144A (Steel)............ 70,563
----------
255,399
----------
CANADA (0.5%)
700 Magna International Inc. Class A
(Plastics & Metals).............. 32,200
----------
DENMARK (0.9%)
1,300 Tele Danmark A/S ADR
(Telecommunications)............. 32,988
460 Unidanmark A/S (Banking)........... 21,354
----------
54,342
----------
FINLAND (1.4%)
1,561 Kymmene (Forest Products &
Paper)........................... $ 32,513
1,430 Nokia Corp. ADR
(Telecommunications)............. 52,848
----------
85,361
----------
FRANCE (8.5%)
200 Accor (Services)................... 28,010
100 Air Liquide (Chemicals)............ 17,681
464 AXA (Insurance).................... 25,416
1,000 Bertrand Faure (Motor Vehicles &
Equipment)....................... 33,067
300 Bic (Consumer Products)............ 42,657
149 Carrefour Super Marche (Grocery
Stores).......................... 83,306
260 Christian Dior S.A. (Consumer
Products)........................ 33,884
300 Companie Generale des Eaux
(Utilities)...................... 33,554
647 Credit Local de France (Financial
Services)........................ 52,849
220 Groupe Danone (Consumer Products).. 33,336
540 GTM Entrerpose S.A.
(Engineering).................... 35,082
75 Legrand (Electronics).............. 13,422
320 Michelin Class B (Rubber & Plastic
Products)........................ 15,661
430 Technip S.A. (Construction)........ 39,646
440 Valeo S.A. (Motor Vehicles &
Equipment)....................... 23,578
----------
511,149
----------
GERMANY (4.2%)
60 CommerzBank AG (Banking)........... 12,428
130 Degussa AG (Plastics & Metals)..... 44,171
450 Deutsche Bank AG (Banking)......... 21,306
1,280 Hoechst AG (Chemicals)............. 43,433
90 MAN AG (Engineering)............... 22,419
400 RWE AG (Utilities)................. 15,598
26 Sandoz AG (Pharmaceuticals)........ 29,743
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------- ----------
COMMON STOCKS--CONTINUED
<C> <S> <C>
GERMANY--CONTINUED
195 SAP AG (Data Processing)........... $ 28,916
89 Volkswagen AG (Motor Vehicles &
Equipment)....................... 33,096
----------
251,110
----------
GREAT BRITAIN (10.8%)
3,640 British Petroleum Co. PLC
(Petroleum & Natural Gas)........ 31,913
800 British Sky Broadcasting PLC
(Publishing)..................... 32,500
10,000 Burton Group PLC (Retail).......... 24,073
2,360 Dixons Group PLC (Retail).......... 19,316
2,600 General Cable PLC ADR*
(Telecommunications)............. 39,975
7,000 General Cable PLC*
(Telecommunications)............. 21,200
1,200 Glaxo Wellcome PLC ADR*
(Pharmaceuticals)................ 32,100
1,333 International Cabletel, Inc.*
(Telecommunications)............. 39,324
2,900 Land Securities PLC (Financial
Services)........................ 28,060
3,600 Rank Organisation PLC
(Entertainment).................. 27,816
1,400 Reuters Holdings PLC ADR
(Publishing)..................... 101,500
16,600 Rolls Royce PLC (Motor Vehicles and
Equipment)....................... 57,750
4,000 Scottish Newcastle Breweries
(Beverages)...................... 40,909
7,624 Standard Chartered Bank PLC
(Banking)........................ 75,900
21,000 WPP Group PLC (Publishing)......... 70,775
----------
643,111
----------
HONG KONG (3.1%)
5,000 Cheung Kong Holdings, Ltd. (Real
Estate).......................... 36,011
9,000 Citic Pacific, Ltd. (Real
Estate).......................... 36,391
3,106 HSBC Holdings PLC (Banking)........ 46,947
6,000 New World Development Co. (Real
Estate).......................... 27,827
4,000 Sun Hung Kai Properties, Ltd. (Real
Estate).......................... 40,435
----------
187,611
----------
INDIA (1.5%)
8,000 Morgan Stanley India Investment
Fund, Inc. (Investment Co.)...... 90,000
----------
INDONESIA (1.0%)
5,000 PT Astra International (Motor
Vehicles & Equipment)............ 7,250
27,500 PT Telecomunikasion
(Telecommunications)............. 41,649
300 PT Telecomunikasion ADR
(Telecommunications)............. 8,925
----------
57,824
----------
ISRAEL (0.8%)
2,300 Geotek Communications, Inc.*
(Telecommunications)............. 31,481
500 Teva Pharmaceutical Industries,
Ltd. ADR (Pharmaceuticals)....... 18,938
----------
50,419
----------
ITALY (3.4%)
3,500 Edison SpA (Electric Utilities).... $ 21,122
9,000 ENI SpA* (Petroleum & Natural
Gas)............................. 44,925
9,000 Istituto Mobiliare Italiano*
(Banking)........................ 75,675
15,000 Telecom Italia Mobile SpA
(Telecommunications)............. 33,628
12,000 Telicom Italia SpA
(Telecommunications)............. 25,829
----------
201,179
----------
JAPAN (23.7%)
2,000 Aida Engineering, Ltd.
(Engineering).................... 16,779
1,000 Aoyama Trading Co. (Consumer
Goods)........................... 26,165
1,600 Bank of Tokyo, Ltd. (Banking)...... 37,180
30 Chubu Electric Power Company, Inc.
(Electric Utilities)............. 681
1,000 Chugai Pharmaceutical Co., Ltd.
(Pharmaceuticals)................ 9,654
1,000 Chugoku Bank, Ltd (Banking)........ 18,755
2,000 Dai Nippon Printing Company
(Publishing)..................... 38,791
2,000 Dai-Ichi Kangyo Bank, Ltd.
(Banking)........................ 37,327
3,000 Daiichi Pharmaceutical, Ltd.
(Pharmaceuticals)................ 46,384
1,000 Daito Trust Construction
(Construction)................... 15,004
1,000 Daiwa House Industry Co., Ltd.*
(Construction)................... 15,553
2,000 Daiwa Securities Company, Ltd.
(Financial Services)............. 25,799
1,000 Fuji Photo Film Company, Ltd.
(Photographic Equipment &
Supplies)........................ 31,655
2,000 Fujitsu, Ltd. (Business
Equipment)....................... 18,297
2,000 Higo Bank (Banking)................ 16,010
5,000 Hitachi, Ltd. (Electronics)........ 46,658
3,000 Hokkaido Bank (Banking)............ 9,936
1,000 House Foods Industry (Food &
Beverages)....................... 19,029
1,000 Industrial Bank of Japan, Ltd.
(Banking)........................ 24,884
1,000 Kikkoman Corp. (Food & Beverages).. 8,188
1,000 Kinden Corp. (Engineering)......... 15,736
1,000 Kyudenko Co., Ltd. (Engineering)... 13,449
1,000 Kyushu Electric Power (Electric
Utilities)....................... 22,597
2,000 Maruichi Steel Tube, Ltd.
(Steel).......................... 36,046
3,000 Matsushita Electric Industrial Co.,
Ltd. (Capital Equipment)......... 32,661
4,000 Mitsubishi Electric Industrial Co.,
Ltd. (Capital Equipment)......... 27,958
2,000 Mitsubishi Estate Company, Ltd.
(Real Estate).................... 27,629
2,000 Mitsubishi Steel Manufacturing Co.
(Steel).......................... 11,747
2,000 Mitsubishi Trust and Banking Corp.
(Banking)........................ 33,850
1,000 Mitsui Petrochemical Industries
(Chemicals)...................... 8,051
1,000 Murata Mfg Co (Consumer Goods)..... 38,059
2,000 NEC Corp. (Electronics)............ 21,774
2,000 Nichicon Corp. (Electronics)....... 29,093
2,000 Nippon Meat Packers (Food &
Beverages)....................... 28,544
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------- ----------
COMMON STOCKS--CONTINUED
<C> <S> <C>
JAPAN--CONTINUED
2,000 Nippon Oil Co. (Petroleum & Natural
Gas)............................. $ 13,595
3,000 Nisshin Steel Co. Ltd (Steel)...... 11,665
1,000 Nitto Denko Corp (Capital
Equipment)....................... 17,657
2,000 Ricoh Company Ltd. (Business
Equipment)....................... 21,393
500 Rinnai Corp. (Consumer Goods)...... 11,893
5,000 Sakura Bank Ltd. (Banking)......... 55,807
2,000 Sanwa Bank (Banking)............... 37,144
2,000 Seino Transportation Co., Ltd.
(Transportation)................. 31,655
3,000 Sekisui House Ltd.(Construction)... 34,308
2,000 Sharp Corp.(Electronics)........... 35,131
2,000 Shionogi & Co., Ltd.
(Pharmaceuticals)................ 17,236
1,000 Sumitomo Bank, Ltd.(Banking)....... 19,395
3,000 Suzuki Motor Corp. (Motor Vehicles
& Equipment)..................... 39,522
1,000 SXL Corp. (Construction)........... 9,881
3,000 Taiyo Yuden Co. Ltd. (Capital
Equipment)....................... 37,876
2,030 Tohoku Electric Power Company
(Electric Utilities)............. 45,501
2,000 Tokio Marine and Fire Insurance
(Insurance)...................... 26,714
3,000 Toppan Printing Co. (Printing)..... 43,914
2,000 Toshiba Corp. (Electronics)........ 14,272
1,000 Uny Company, Ltd. (Retail)......... 19,853
1,000 Yakult Honsha (Beverages).......... 14,181
1,000 Yamaguchi Bank (Banking)........... 17,017
1,000 Yamanouchi Pharmaceutical Co., Ltd.
(Pharmaceuticals)................ 21,774
1,000 Yamato Transport Co., Ltd.
(Transportation)................. 11,802
----------
1,419,109
----------
KOREA (1.4%)
2,900 Korea Fund, Inc. (Investment
Co.)............................. 82,388
----------
MALAYSIA (2.4%)
12,000 Diversified Resources Bhd. (Motor
Vehicles & Equipment)............ 41,371
4,000 Malayan Banking Bhd. (Banking)..... 38,485
15,000 Petronas Gas Bhd. (Petroleum &
Natural Gas)..................... 34,315
6,000 YTL Corp. Bhd. (Construction)...... 31,269
----------
145,440
----------
MEXICO (2.0%)
15,000 Cemex S.A. Class B
(Construction)................... 59,690
2,000 Grupo Modelo S.A. Series C
(Beverages)...................... 9,440
1,000 Kimberly Clark Mexico (Consumer
Products)........................ 18,194
5,000 Sanluis Corp. S.A. (Motor Vehicles
& Equipment)..................... 30,719
----------
118,043
----------
NETHERLANDS (3.1%)
800 Koninklijke PTT Nederland NV*
(Telecommunications)............. 30,302
2,200 Unilever NV (Consumer Goods)....... 43,735
1,000 Wolters Kluwer NV (Publishing)..... 113,691
----------
187,728
----------
PHILIPPINES (1.1%)
19,000 Ayala Corp Class B (Real Estate)... $ 35,897
500 Philippine Long Distance Telephone
(Telecommunications)............. 29,063
----------
64,960
----------
PORTUGAL (0.3%)
800 Portugal Telecom S.A.
(Telecommunications)............. 20,923
----------
SINGAPORE (2.6%)
3,000 Oversea Chinese Banking Corp.,
Ltd.* (Banking).................. 35,082
2,400 Singapore Press Holdings, Ltd.
(Publishing)..................... 47,116
8,000 Straits Steamship Land
(Transportation)................. 26,761
4,800 United Overseas Bank, Ltd.
(Banking)........................ 45,924
----------
154,883
----------
SOUTH AFRICA (2.3%)
4,000 Amalgamated Banks of South Africa
(Banking)........................ 22,156
680 Anglo America Industrial Corp.
(Mining)......................... 23,355
7,000 General Minning Union Corp.*
(Mining)......................... 25,848
703 South African Breweries, Ltd. ADR
(Food & Beverages)............... 20,617
1,600 South African Breweries, Ltd. (Food
& Beverages)..................... 46,895
----------
138,871
----------
SPAIN (1.6%)
143 Banco Popular (Banking)............ 25,516
300 Bankinter S.A. (Banking)........... 33,585
1,110 Repsol S.A. ADR (Petroleum &
Natural Gas)..................... 38,491
----------
97,592
----------
SWEDEN (4.0%)
1,500 Astra AB Fria (Healthcare)......... 66,362
1,000 Autoliv AB (Motor Vehicles &
Equipment)....................... 30,500
2,000 Ericsson Telelephone Co. ADR Class
B (Telecommunications)........... 43,000
490 Hennes & Mauritz Fria (Textiles)... 45,503
1,100 Mo och Domsjo AB (Paper & Forest
Products)........................ 28,236
2,000 Stora Kopparbergs Bergslags AB
Class A (Paper & Forest
Products)........................ 26,424
----------
240,025
----------
SWITZERLAND (4.4%)
40 Asea Brown Boveri AG
(Electronics).................... 49,500
32 Ciba Geigy AG (Chemicals).......... 39,012
50 Holderbank Financial AG Class B
(Banking)........................ 39,971
6 Roche Holding AG
(Pharmaceuticals)................ 45,783
60 Swiss Reinsurance Co (Insurance)... 61,635
28 Union Bank of Switzerland
(Banking)........................ 27,420
----------
263,321
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------- ----------
COMMON STOCKS--CONTINUED
<C> <S> <C>
THAILAND (2.2%)
1,500 Advanced Information Systems*
(Telecommunications)............. $ 22,218
4,600 Krung Thai Bank Ltd. (Banking)..... 21,020
8,000 Thai Farmers Bank Ltd. (Banking)... 87,611
----------
130,849
----------
TOTAL COMMON STOCKS (COST $5,104,456)........... 5,591,070
----------
<CAPTION>
PRINCIPAL
- -----------
<C> <S> <C>
BONDS (0.4%)
HK$ 50 HKR International Ltd., 6.0%,
6/26/00 (Tourism)................ 6
$ 20,000 Italy INA Convertible, 5%, 6/28/01
(Real Estate).................... 20,457
----------
TOTAL BONDS (COST $20,005)...................... 20,463
----------
TOTAL INVESTMENTS AT VALUE (93.7%)
(COST $5,124,461)(a)............................ $5,611,533
CASH AND OTHER ASSETS
NET OF LIABILITIES (6.3%)....................... 379,915
----------
NET ASSETS (100.0%)............................. $5,991,448
----------
----------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is
$5,124,461, the aggregate gross unrealized appreciation
is $649,143, and the aggregate gross unrealized
depreciation is $162,071, resulting in net unrealized
appreciation of $487,072.
ADR: American Depositary Receipt
- --------------------------------------------------------------------------------
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- -----------
COMMON STOCKS (95.2%)
<C> <S> <C>
BANKING & FINANCE (21.2%)
6,300 Bank of New York.................... $ 322,875
20,000 Bank of Rhode Island................ 200,000
8,100 Federal National Mortgage
Association....................... 271,350
7,500 First Chicago NBD Corp.............. 293,437
8,500 First Colorado Bancorp.............. 112,625
2,100 Franklin Resources, Inc............. 128,100
7,500 Glendale Federal Bank FSB........... 135,937
8,100 Great Western Financial............. 193,388
8,000 HomeCorp, Inc.*..................... 143,375
4,000 Household International, Inc........ 304,000
6,000 Imperial Bancorp*................... 144,000
20,000 Mercury Financial Co................ 255,000
4,500 National City Corp.................. 158,062
8,500 Northfork Bancorp................... 222,063
5,000 PNC Bank Corp....................... 148,750
3,000 Summit Bancorp...................... 105,375
10,500 Texas Regional Bancshares Class A... 262,500
3,200 UnionBanCal Corp.................... 169,200
5,000 ValliCorp Holdings, Inc............. 85,625
5,650 Webster City Federal Savings........ 70,625
10,000 WFS Financial, Inc.*................ 225,000
-----------
3,951,287
-----------
CHEMICALS (1.6%)
6,000 Englehard Corp...................... 138,000
3,000 Hercules, Inc....................... 165,750
-----------
303,750
-----------
COMPUTER EQUIPMENT & DATA PROCESSING
(13.1%)
7,500 AMP Inc............................. 300,937
8,832 Automatic Data Processing, Inc...... 341,136
3,000 Computer Sciences Corp.*............ 224,250
10,000 Durion, Inc......................... 240,000
6,000 Electronic Data Systems Corp........ 322,500
2,800 First Data Corp..................... 222,950
3,000 Motorola, Inc....................... 188,625
10,000 National Semiconductor Corp.*....... 155,000
4,000 Thomas & Betts Corp................. $ 150,000
20,000 Ultradata Corp.*.................... 155,000
10,000 VLSI Technology, Inc.*.............. 138,750
-----------
2,439,148
-----------
CONSUMER & OFFICE PRODUCTS (5.1%)
3,800 Alco Standard Corp.................. 171,950
4,800 General Electric Co................. 415,200
4,000 Proctor & Gamble Co................. 362,500
-----------
949,650
-----------
FOODS & BEVERAGES (4.6%)
2,800 Anheuser Busch...................... 210,000
4,000 CPC International, Inc.............. 288,000
5,000 H. J. Heinz Co...................... 151,875
6,100 Nabisco Holdings Corp. Class A...... 215,788
-----------
865,663
-----------
HEALTHCARE (8.9%)
10,000 Caremark International, Inc......... 252,500
6,500 Columbia/HCA Healthcare Corp........ 346,937
9,000 Coventry Corporation*............... 141,750
20,000 Metra Biosystems, Inc.*............. 110,000
13,000 Physician Corp. of America*......... 172,250
6,500 Physician Health Services, Inc.*.... 147,875
10,000 St. Jude Medical, Inc............... 335,000
10,000 United American Healthcare Corp.*... 105,000
5,000 Wellcare Management Group, Inc.*.... 46,875
-----------
1,658,187
-----------
HEAVY INDUSTRY (3.9%)
10,000 Goulds Pumps, Inc................... 256,250
5,300 Tenneco, Inc........................ 270,962
4,500 Trinity Industries.................. 153,000
15,000 Weirton Steel*...................... 45,000
-----------
725,212
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- -----------
<C> <S> <C>
INSURANCE (3.7%)
4,400 Aetna Life & Casualty................ $ 314,600
2,550 American International Group......... 251,494
2,500 St. Paul Cos......................... 133,750
----------
699,844
----------
LEISURE & ENTERTAINMENT (2.7%)
4,410 Gaylord Entertainment................ 124,582
4,500 Readers Digest Association, Inc...... 191,250
5,000 Viacom, Inc. Class B*................ 194,375
----------
510,207
----------
OIL SERVICE (1.8%)
7,300 USX-Marathon Group................... 146,913
10,000 Union Texas Petroleum Holdings....... 195,000
----------
341,913
----------
PHARMACEUTICALS (8.5%)
7,500 Abott Laboratories................... 326,250
3,000 Amgen, Inc.*......................... 162,000
4,000 Merck & Co., Inc..................... 258,500
8,000 Pharmacia & Upjohn, Inc.*............ 355,000
3,500 Schering-Plough Corp................. 219,625
5,000 SmithKline Beecham PLC ADR........... 271,875
----------
1,593,250
----------
SERVICES (3.6%)
3,000 Dun & Bradstreet Corp................ 187,500
15,000 Katz Media Group*.................... 215,625
6,700 Manpower, Inc........................ 262,975
----------
666,100
----------
TELECOMMUNICATIONS (12.7%)
10,000 360 Communications Co.*.............. 240,000
3,000 AT&T Corp............................ 186,000
22,000 American Paging, Inc.*............... 163,625
10,000 Atlantic Tele-Network*............... 240,000
3,800 Cincinnati Bell, Inc................. 198,075
9,421 Comcast Corp. Class A................ 174,289
3,000 SBC Communications, Inc.............. 147,750
20,000 Tele-Communications Inc. Class A*.... $ 362,500
6,000 Telephone & Data System, Inc......... 270,000
10,000 Western Wireless Corp. Class A*...... 213,750
3,000 Worldcom, Inc.*...................... 166,931
----------
2,362,920
----------
TRANSPORTATION (1.1%)
7,500 Illinois Central Corp................ 212,813
----------
UTILITIES (2.7%)
8,100 CINergy Corp......................... 259,200
15,400 Southwest Gas Co..................... 246,400
----------
505,600
----------
TOTAL COMMON STOCKS (COST $15,311,625).......... 17,785,544
----------
PREFERRED STOCK (0.9%)
4,400 Allstate Corp., 6.76% Convertible
(Cost $149,600).................... 173,800
PRINCIPAL
- ---------
CONVERTIBLE BONDS (1.5%)
$325,000 Softkey 144A, 5.5% 11/1/00 (Cost
$296,317).......................... 258,375
----------
TOTAL INVESTMENTS AT VALUE (97.6%)
(COST $15,757,542)(a)........................... 18,217.719
CASH AND OTHER ASSETS
NET OF LIABILITIES (2.4%)....................... 457,088
----------
NET ASSETS (100.0%)............................. $18,674,807
----------
----------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is
$15,757,542, the aggregate gross unrealized appreciation
is $3,217,342, and the aggregate gross unrealized
depreciation is $757,165, resulting in net unrealized
appreciation of $2,460,177.
ADR: American Depositary Receipt
- --------------------------------------------------------------------------
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- ----------
COMMON STOCKS (53.8%)
<C> <S> <C>
AIRCRAFT/DEFENSE MANUFACTURING--(2.7%)
800 Boeing Co............................ $ 69,700
400 General Dynamics..................... 24,800
----------
94,500
----------
AIRLINES (1.2%)
700 Continental Airlines Class B*........ 43,225
----------
AUTOMOTIVE (1.5%)
400 Chrysler Corp........................ 24,800
600 Magna International Class A.......... 27,600
----------
52,400
----------
BANKING & FINANCE (5.9%)
1,100 Chase Manhattan Corp................. 77,688
900 Citicorp............................. 74,363
1,600 Federal National Mortgage
Association........................ 53,600
----------
205,651
----------
CHEMICALS (1.9%)
2,000 Monsanto Co.......................... $ 65,000
----------
COMPUTER EQUIPMENT & DATA PROCESSING
(8.2%)
400 America Online, Inc.*................ 17,500
300 BMC Software*........................ 17,925
200 Hewlett Packard, Inc................. 19,925
800 Intel Corp........................... 58,750
500 International Business Machines...... 49,500
400 Microsoft Corp.*..................... 48,050
700 Seagate Technology, Inc.*............ 31,500
2,400 System Software Associates, Inc...... 40,800
----------
283,950
----------
CONSUMER PRODUCTS (6.3%)
200 Eastman Kodak Co..................... 15,550
800 General Electric..................... 69,200
800 Illinois Tool Works, Inc............. 54,100
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- --------- ----------
<C> <S> <C>
CONSUMER PRODUCTS--CONTINUED
1,000 Johnson & Johnson............. $ 49,500
1,100 Mattel, Inc................... 31,487
----------
219,837
----------
FOODS & BEVERAGES (0.6%)
400 Coca-Cola Company............. 19,550
----------
GOLD AND SILVER ORES (0.5%)
600 Barrick Gold Corp............. 16,275
----------
HEALTHCARE (0.6%)
400 Medtronic, Inc................ 22,400
----------
INDUSTRIAL ENGINEERING (1.6%)
200 Harsco Corp................... 13,450
1,050 Thermo Electron Corp.*........ 43,706
----------
57,156
----------
INSURANCE (4.5%)
2,100 Allmerica Financial Corp...... 62,475
300 American International Group,
Inc......................... 29,587
500 SunAmerica, Inc............... 28,250
750 Travelers Group, Inc.......... 34,219
----------
154,531
----------
LEISURE & ENTERTAINMENT (2.7%)
1,300 Viacom Class B*............... 50,538
700 Walt Disney Co................ 44,012
----------
94,550
----------
PAPER & FOREST PRODUCTS (3.0%)
300 Alco Standard Corp............ 13,575
900 Kimberly-Clark Corp........... 69,525
400 Mead Corp..................... 20,750
----------
103,850
----------
PETROLEUM & NATURAL GAS (4.6%)
400 Amoco Corp.................... 28,950
1,000 Enron Corp.................... 40,875
900 Triton Energy, Inc.*.......... 43,762
1,400 Unocal Corp................... 47,250
----------
160,837
----------
PHARMACEUTICALS (3.0%)
600 Bristol-Myers Squibb Co....... 54,000
700 Pfizer, Inc................... 49,962
----------
103,962
----------
RETAIL (2.3%)
1,200 Home Depot.................... 64,800
6,000 OfficeMax Inc.*............... 14,325
----------
79,125
----------
TELECOMMUNICATIONS (2.7%)
1,320 Ericsson Telephone Co. ADR
Class B..................... 28,380
1,800 Network Equipment
Technology*................. 38,250
600 Nokia Corp. ADR............... 22,200
---------
88,830
---------
TOTAL COMMON STOCKS (COST $1,626,516).... 1,865,629
---------
<CAPTION>
PRINCIPAL
- ---------
CORPORATE BONDS (8.3%)
$ 40,000 G.E. Capital Management
Service, 6.5%, 11/25/23..... 33,973
44,500 G.E. Capital Management
Service, 6.5%, 3/25/24...... 41,255
$ 19,135 Merrill Lynch Mortgage Inv.
Inc., 9.7%, 7/15/10......... $ 20,254
45,221 Merrill Lynch Mortgage Inv.
Inc., 7.65%, 1/15/12........ 45,595
40,000 Merrill Lynch Mortgage Inv.
Inc., 7.09%, 12/26/25....... 38,731
50,000 Prudential Home Mortgage Sec.,
6.25%, 4/25/24.............. 40,628
40,000 Storage Technology, 7%,
3/15/08..................... 66,100
----------
TOTAL CORPORATE BONDS (COST $267,073).... 286,536
----------
MUNICIPAL BONDS (11.4%)
40,000 Baltimore Community
Development Financing, 8.2%,
8/15/07..................... 41,700
11,705 Denver Colorado City & County
Single Family, 7.25%,
12/1/10..................... 11,734
50,000 Miami Florida Revenue, 7.25%,
12/1/00..................... 51,000
20,000 Michigan State Job Development
Authority MFM, 7.1%,
5/1/98...................... 20,200
15,000 New York City Taxable, 9.75%,
8/5/12...................... 16,650
40,000 New York State HFA Service,
7.5%, 9/15/03............... 39,450
40,000 New York State Job Development
Authority Series A, 7.625%,
3/1/97...................... 40,250
50,000 Ohio Housing Financial Agency,
7.9%, 10/1/14............... 51,812
30,000 Oklahoma City Airport Taxable,
9.4%, 11/1/10............... 30,713
40,000 Oregon State General
Obligation, 6.9%, 1/1/00.... 39,850
50,000 Rosecliff Department of Energy
GSA, 8%, 11/15/08........... 51,938
---------
TOTAL MUNICIPAL BONDS (COST $391,402).... 395,297
---------
FOREIGN GOVERNMENT OBLIGATIONS (0.8%)
30,000 Quebec Province, 6.89%,
4/15/26
(Cost $28,966).............. 29,125
---------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (16.5%)
Federal Home Loan Mortgage Corporation:
20,000 6%, 3/15/08................... 19,109
50,000 5.5%, 9/15/02................. 49,633
Federal National Mortgage Association:
45,000 6.15%, 10/25/07............... 43,337
40,000 5%, 10/25/03.................. 39,388
40,000 U.S. Treasury Bonds, 8.125%,
8/15/19..................... 44,890
U.S. Treasury Notes:
130,000 7.25%, 5/15/04................ 134,703
40,000 6.875%, 8/31/99............... 40,577
40,000 6.25%, 2/15/03................ 39,313
165,000 6.25%, 8/31/00................ 163,809
---------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS(COST $582,173)............... 574,759
---------
TOTAL INVESTMENTS AT VALUE (90.9%)
(COST $2,896,130)(a)..................... 3,151,346
CASH AND OTHER ASSETS
NET OF LIABILITIES (9.1%)................ 316,652
---------
NET ASSETS (100.0%)...................... $3,467,998
---------
---------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax
purposes is $2,896,130, the aggregate gross
unrealized appreciation is $325,599, and the
aggregate gross unrealized depreciation is
$70,383, resulting in net unrealized
appreciation of $255,216.
ADR: American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
CORPORATE BONDS (37.2%)
<C> <S> <C>
$ 250,000 Alliance Gaming, 12.875%, 6/30/03
(United States)................... $ 249,375
200,000 Hayes Wheels, 11%, 7/15/06 (United
States)........................... 202,500
100,000 International Wire Group,11.75%,
6/1/05 (United States)............ 99,250
141,700 MCII Holdings (USA), Zero Coupon,
11/15/02 (United States).......... 110,526
100,000 Mesa Operating Co., 10.625%, 7/1/06
(United States)................... 101,125
100,000 Owens & Minor, 10.875%, 6/1/06
(United States)................... 103,500
75,000 Park Newspapers, Inc., 11.875%,
5/15/04 (United States)........... 75,750
80,000 Showboat Marina Casino, 13.5%,
3/15/03 (United States)........... 86,400
100,000 Specialty Foods, 11.125%, 10/1/02
(United States)................... 94,750
80,000 Stena AB, 10.5%, 12/15/05
(Sweden).......................... 79,400
100,000 Sweetheart Cup, 9.625%, 9/1/00
(United States)................... 98,875
100,000 Trans Texas Gas, 11.5%, 6/15/02
(United States)................... 99,750
100,000 Trump Atlantic City, 11.25%, 5/1/06
(United States)................... 100,500
125,000 Unisys Corp., 12%, 4/15/03 (United
States)........................... 127,500
-----------
TOTAL CORPORATE BONDS (COST $1,582,416)........ 1,629,201
-----------
EUROBONDS (5.8%)
150,000 Empresas Ica Sociedad, 11.875%,
5/30/01 (Mexico).................. 151,125
100,000 RBS Participacoes S.A., 14%,
12/15/03 (Brazil)................. 104,500
-----------
TOTAL EUROBONDS (COST $250,565)................ 255,625
-----------
FOREIGN GOVERNMENT (5.5%)
254,000 Argentina Bocon Pre 4, 5.42%, 9/1/02
(Argentina) (Cost $226,866)....... 240,983
-----------
YANKEE BOND (18.1%)
250,000 APP International Finance, 11.75%,
10/1/05 (Indonesia)............... 255,625
100,000 Grupo Televisa, 11.875%, 5/15/06
(Mexico).......................... 102,000
100,000 Metrogas S.A., 10.875%, 5/15/01
(Argentina)....................... 101,500
$ 125,000 National Bank of Hungary, 8.875%,
11/1/13 (Hungary)................. $ 125,027
150,000 Tolmex S.A., 8.375%, 11/1/03
(Mexico).......................... 125,062
80,000 Trizec Finance, 10.875%, 10/15/05
(Canada).......................... 82,000
-----------
TOTAL YANKEE BONDS (COST $785,708)............. 791,214
-----------
BRADY BONDS (27.3%)
250,000 Central Bank of Nigeria, 6.25%,
11/15/20 (Nigeria)................ 130,313
200,000 Government of Bulgaria, 6.25%,
7/28/11 (Bulgaria)................ 94,750
150,000 Government of Bulgaria, 6.25%,
7/28/24 (Bulgaria)................ 77,437
250,000 Mexican Discount Bond Series B,
6.39%, 12/31/19 (Mexico).......... 196,250
150,000 National Government of Jordan, 4%,
12/23/23 (Jordan)................. 78,000
291,833 Republic of Brazil, 8%, 4/15/14
(Brazil).......................... 180,207
188,000 Republic of Ecuador, 6.0625%,
2/28/25 (Ecuador)................. 107,395
200,000 Republic of Poland, 3.75%, 10/27/14
(Poland).......................... 150,000
250,000 Republic of Venezuela, 6.625%,
12/18/07 (Venezuela).............. 176,875
-----------
TOTAL BRADY BONDS (COST $1,083,581)............ 1,191,227
-----------
WARRANTS (0.0%)
250 Central Bank of Nigeria Warrants,
expires 11/15/20*................. 0
384,000 United Mexican States Warrants,
expires 6/30/03*.................. 0
-----------
TOTAL WARRANTS (COST $0)....................... 0
-----------
TOTAL INVESTMENTS AT VALUE (93.9%)
(COST $3,929,136)(a)........................... 4,108,250
CASH AND OTHER ASSETS
NET OF LIABILITIES (6.1%)...................... 266,326
-----------
NET ASSETS (100.0%)............................ $ 4,374,576
-----------
-----------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes is
$3,929,136, the aggregate gross unrealized appreciation
is $196,225, and the aggregate gross unrealized
depreciation is $17,111, resulting in net unrealized
appreciation of $179,114.
- --------------------------------------------------------------------------------
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
ASSET BACKED SECURITIES (17.9%)
<C> <S> <C>
$ 500,000 Advanta Mortgage Loan, 6.03%,
8/25/11........................... $ 486,405
432,881 Chase Manhattan Grantor Trust, 5.2%,
4/15/02........................... 427,002
500,000 Ford Credit Auto Loan Master Trust,
6.5%, 8/15/02..................... 496,564
$ 500,000 Navistar Financial, 6.35%,
5/30/96........................... $ 499,770
400,000 Standard Credit Card Master Trust,
5.95%, 10/7/04.................... 376,316
-----------
TOTAL ASSET BACKED SECURITIES (COST
$2,316,006).................................... 2,286,057
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
BOND PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
- --------- -----------
<C> <S> <C>
CORPORATE BONDS (26.0%)
AIRLINES (1.4%)
$ 75,000 Delta Airlines, Inc., 10.375%
2/1/11............................. $ 90,738
75,000 United Airlines, Inc., 10.25%,
7/15/21............................ 87,828
----------
178,566
----------
BANKING & FINANCE (12.6%)
400,000 Associates Corp. of North America
7.875%, 9/30/01.................... 416,490
500,000 Bank of New York, 8.5%, 12/15/04..... 538,490
500,000 Ford Motor Credit Co., 6.25%,
11/8/00............................ 487,931
105,603 Mercantile Safe Deposit, 12.125%,
1/2/01+............................ 117,978
42,857 Star Banc Corp., 9.25%, 7/15/01+..... 42,900
----------
1,603,789
----------
BROADCAST & MEDIA (2.2%)
250,000 News America Holdings, Inc., 10.125%,
10/15/12........................... 282,467
----------
CHEMICALS (3.9%)
500,000 Praxair, 6.7%, 4/15/01............... 495,679
----------
INSURANCE (3.9%)
500,000 Travelers/Aetna P&C, 6.75%,
4/15/01............................ 496,824
----------
UTILITIES (2.0%)
250,000 Mississippi Power & Light, 8.8%,
4/1/05............................. 253,514
----------
TOTAL CORPORATE BONDS (COST $3,250,938)......... 3,310,839
----------
YANKEE BONDS (4.3%)
300,000 Hydro-Quebec, 8.05%, 7/7/24.......... 318,507
250,000 Province of Ontario, 6%, 2/21/06..... 229,302
----------
TOTAL YANKEE BONDS (COST $518,713).............. 547,809
----------
MORTGAGE BACKED SECURITIES (24.2%)
Federal Home Loan Mortgage Association:
494,903 7%, 4/1/03........................... 493,201
57,728 6%, 10/1/10.......................... 54,786
681,809 6%, 8/1/10........................... 647,063
210,701 6%, 5/1/09........................... 200,609
Government National Mortgage Association:
65,831 10.25%, 7/15/12...................... 65,831
434,152 9%, 8/15/19.......................... 457,726
632,859 7%, 6/15/09.......................... 628,225
$469,138 6.5%, 1/15/24........................ $ 437,447
100,000 Morgan Stanley Mortgage Trust, 9.8%,
11/1/18............................ 101,197
----------
TOTAL MORTGAGE BACKED SECURITIES (COST
$3,102,558)..................................... 3,086,085
----------
U.S. TREASURY OBLIGATIONS (14.3%)
350,000 U.S. Treasury Bond, 7.25%, 5/15/16... 358,531
U.S. Treasury Notes:
500,000 6.75%, 5/31/99....................... 505,780
350,000 6.25%, 2/15/03....................... 343,656
250,000 6.125%, 3/31/98...................... 250,273
375,000 5.125%, 2/28/98...................... 369,492
----------
TOTAL U.S. TREASURY OBLIGATIONS (COST
$1,860,028) 1,827,732
----------
AGENCY FOR INTERNATIONAL DEVELOPMENT BONDS
(7.1%)+
Central America:
150,000 Series F, 10%, 12/1/11............... 170,816
150,000 Series G, 10%, 12/1/11............... 170,816
150,000 Series H, 10%, 12/1/11............... 170,816
Republic of Honduras:
92,683 Series B, 13%, 6/1/01................ 104,322
100,000 Series C, 13%, 6/1/06................ 129,815
100,000 Series D, 13%, 6/1/11................ 139,925
----------
TOTAL AGENCY FOR INTERNATIONAL DEVELOPMENT BONDS
(COST $742,683) 886,501
----------
TOTAL INVESTMENTS AT VALUE (93.8%) (COST
$11,790,926) (a)................................ 11,945,032
----------
CASH AND OTHER ASSETS (6.2%)....................
NET OF LIABILITIES 791,943
----------
NET ASSETS (100.0%)............................. $12,736,975
----------
----------
</TABLE>
- ------------------------
(a) The aggregate cost for federal income tax purposes is $11,790,926, the
aggregate gross unrealized appreciation is $301,197, and the aggregate gross
unrealized appreciation is $147,091, resulting in net unrealized
appreciation of $154,106.
+ Restricted and Board valued security (Note 5).
- --------------------------------------------------------------------------------
MUNICIPAL BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
- --------- ----------
MUNICIPAL BONDS (93.3%)
<C> <S> <C>
COLORADO (2.9%)
$ 75,000 Colorado Springs Utilities, 6.2%,
11/15/99........................... $ 78,928
----------
CONNECTICUT (3.6%)
100,000 Connecticut State Special Tax MBIA,
5.4%, 9/1/09....................... 98,971
----------
FLORIDA (16.7%)
125,000 Dade County Water & Sewer System,
6.25%, 10/1/07..................... 136,066
100,000 Florida State Board of Education, 5%,
6/1/02............................. 100,966
100,000 Florida State Environmental
Preservation AMBAC, 5.5%, 7/1/07... 101,537
$ 50,000 Fort Lauderdale Water & Sewer, 5.1%,
9/1/02............................. $ 50,736
60,000 Jacksonville Electric Authority,
6.375%, 10/1/99.................... 63,332
----------
452,637
----------
HAWAII (2.9%)
75,000 Hawaii State, 6%, 2/1/02............. 79,142
----------
ILLINOIS (2.9%)
75,000 Illinois State, 6.375%, 8/1/00....... 79,423
----------
INDIANA (3.8%)
100,000 Indiana Municipal Power Agency,
5.875%, 1/1/10..................... 103,300
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
MUNICIPAL BOND PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
- --------- ----------
MUNICIPAL BONDS--CONTINUED
<C> <S> <C>
MASSACHUSETTS (3.0%)
$ 75,000 Massachusetts State, 6.25%, 7/1/04... $ 80,714
----------
MINNESOTA (10.7%)
100,000 Faribault Independent School
District, 7.75%, 6/1/01............ 112,714
100,000 Minneapolis Series B, 4.8%, 3/1/04... 99,070
75,000 Ramsey County, 5.5%, 2/1/02.......... 77,619
----------
289,403
----------
NEW JERSEY (4.8%)
25,000 Monmouth County, 6.9%, 8/1/98........ 26,330
100,000 New Jersey State, 5.5%, 2/15/04...... 103,454
----------
129,784
----------
NEW MEXICO (4.8%)
125,000 Albuquerque Water & Sewer, 6%,
7/1/15............................. 130,894
----------
NEW YORK (3.8%)
100,000 Municipal Assistance Corp. AMBAC,
5.25%, 7/1/02...................... 102,167
----------
NORTH CAROLINA (3.8%)
100,000 Mecklenburg County, 5.2%, 3/1/99..... 102,296
----------
OREGON (3.0%)
75,000 Oregon State Series LX, 6.5%,
11/1/00............................ 80,759
----------
PENNSYLVANIA (6.5%)
100,000 Haverford Township School District,
5.25%, 3/15/06..................... 100,067
75,000 Pennsylvania State MBIA, 5.2%,
6/15/04............................ 75,778
----------
175,845
----------
TEXAS (6.8%)
100,000 Texas A & M University Revenue,
5.95%, 5/15/05..................... 105,711
75,000 University of Texas Permanent
University Fund, 5.9%, 7/1/02...... 79,261
----------
184,972
----------
VIRGINIA (3.7%)
$ 100,000 Big Stone Gap Redevelopment &
Housing, 5.1%, 9/1/00.............. $ 101,418
----------
WASHINGTON (3.7%)
100,000 Washington State Motor Vehicle Fuel,
5.375%, 9/1/06..................... 101,204
----------
WISCONSIN (5.9%)
75,000 Milwaukee Metropolitan Sewer
District, 6.6%, 10/1/99............ 79,601
75,000 Wisconsin State Clean Water Revenue,
6.25%, 6/1/03...................... 80,745
----------
160,346
----------
TOTAL MUNICIPAL BONDS (COST $2,531,279)......... 2,532,203
----------
TOTAL INVESTMENTS AT VALUE (93.3%)
(COST $2,531,279)(a)............................ 2,532,203
CASH AND OTHER ASSETS NET OF LIABILITIES
(6.7%).......................................... 182,233
----------
NET ASSETS (100.0%)............................. $2,714,436
----------
----------
</TABLE>
- ------------------------------
* Non-income producing security.
(a) The aggregate cost for federal income tax
purposes is $2,531,279, the aggregate gross
unrealized appreciation is $19,427, and the
aggregate gross unrealized depreciation is
$18,503, resulting in net unrealized
appreciation of $924.
AMBAC: American Municipal Bond Assurance Corp.
MBIA: Municipal Bond Insurance Association
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
SELECT ADVISORS PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL GROWTH & INCOME MUNICIPAL
GROWTH EQUITY INCOME BALANCED OPPORTUNITY BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1)* $4,440,659 $5,611,533 $18,217,719 $3,151,346 $4,108,250 $11,945,032 $2,532,203
Cash 465,117 667,827 370,397 334,881 502,384 646,796 275,691
Receivables for:
Securities sold 466,299 184,693 386,684 -- -- 833,557 --
Dividends 4,835 13,856 22,251 1,748 -- --
Foreign tax reclaim 32 9,324 -- 16 -- -- --
Interest 1,210 1,861 3,778 18,945 66,594 152,546 40,199
Open forward foreign currency
contracts -- 28 -- -- -- -- --
Deferred organization expenses 23,027 23,027 23,027 23,027 23,027 23,027 23,027
---------- ---------- ----------- ---------- ---------- ----------- ----------
Total assets 5,401,179 6,512,149 19,023,856 3,529,963 4,700,255 13,600,958 2,871,120
---------- ---------- ----------- ---------- ---------- ----------- ----------
LIABILITIES:
Payable for investments purchased -- 483,316 228,125 37,225 300,000 784,035 130,894
Payable to Administrator (Note 2) 6,321 14,160 6,095 6,068 6,024 5,248 4,783
Payable to Advisor (Note 2) 26,546 14,825 106,074 11,351 11,626 66,106 14,680
Other accrued expenses 7,734 8,400 8,755 7,321 8,029 8,594 6,327
---------- ---------- ----------- ---------- ---------- ----------- ----------
Total liabilities 40,601 520,701 349,049 61,965 325,679 863,983 156,684
---------- ---------- ----------- ---------- ---------- ----------- ----------
NET ASSETS:
Applicable to investors' beneficial
interests $5,360,578 $5,991,448 $18,674,807 $3,467,998 $4,374,576 $12,736,975 $2,714,436
---------- ---------- ----------- ---------- ---------- ----------- ----------
---------- ---------- ----------- ---------- ---------- ----------- ----------
*Cost of investments $3,823,934 $5,124,461 $15,757,542 $2,896,130 $3,929,136 $11,790,926 $2,531,279
---------- ---------- ----------- ---------- ---------- ----------- ----------
---------- ---------- ----------- ---------- ---------- ----------- ----------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1)
Interest $ 8,155 $ 10,504 $ 19,631 $ 44,312 $ 187,483 $ 436,589 $ 63,113
Dividends (a) 23,957 66,945 139,977 13,076 -- -- --
---------- ----------- ----------- ---------- ----------- ----------- ----------
TOTAL INVESTMENT INCOME 32,112 77,449 159,608 57,388 187,483 436,589 63,113
---------- ----------- ----------- ---------- ----------- ----------- ----------
EXPENSES:
Administration and fund accounting
fees (Note 2) 30,410 30,606 30,651 31,747 30,678 30,100 29,604
Investment advisory fees (Note 2) 18,551 25,913 63,387 10,793 10,230 33,934 6,986
Auditing fees 7,177 7,686 6,955 6,647 7,685 6,453 5,463
Custody fees 5,810 20,968 3,930 3,892 3,293 2,082 1,126
Amortization of organization expenses
(Note 1) 3,478 3,478 3,478 3,478 3,478 3,478 3,478
Trustee fees (Note 2) 673 782 2,458 450 451 1,763 366
Miscellaneous 1,125 1,520 4,083 765 712 3,577 712
---------- ----------- ----------- ---------- ----------- ----------- ----------
Total expenses 67,224 90,953 114,942 57,772 56,527 81,387 47,735
Reimbursement from Advisor (Note 4) (29,777) (44,725) (58,874) (34,006) (34,750) (31,763) (31,381)
---------- ----------- ----------- ---------- ----------- ----------- ----------
Net expenses 37,447 46,228 56,068 23,766 21,777 49,624 16,354
---------- ----------- ----------- ---------- ----------- ----------- ----------
NET INVESTMENT INCOME (LOSS) (5,335) 31,221 103,540 33,622 165,706 386,965 46,759
---------- ----------- ----------- ---------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on
investments (b) 290,603 189,073 2,270,915 106,123 97,510 (17,253) 1,920
Net change in unrealized appreciation
(depreciation) 120,404 212,729 (634,510) (1,406) 84,627 (596,168) (64,562)
---------- ----------- ----------- ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS): 411,007 401,802 1,636,405 104,717 182,137 (613,421) (62,642)
---------- ----------- ----------- ---------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 405,672 $ 433,023 $ 1,739,945 $ 138,339 $ 347,843 $ (226,456) $ (15,883)
---------- ----------- ----------- ---------- ----------- ----------- ----------
---------- ----------- ----------- ---------- ----------- ----------- ----------
</TABLE>
- ------------------------------
(a) Net of foreign tax witholding of $106 for Emerging Growth Portfolio and
$9,416 for International Equity Portfolio.
(b) Includes foreign currency transactions loss of $9,665 for International
Equity Portfolio.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
SELECT ADVISORS PORTFOLIOS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH INTERNATIONAL EQUITY GROWTH & INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------ ------------------------ ------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER JUNE 30, DECEMBER JUNE 30, DECEMBER
1996 31, 1996 31, 1996 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (5,335) $ (3,877) $ 31,221 $ 4,340 $ 103,540 $ 113,940
Net realized gain (loss) on
investments 290,603 275,958 189,073 (425,634) 2,270,915 1,974,179
Net change in unrealized
appreciation (depreciation) on
investments 120,404 410,318 212,729 676,327 (634,510) 1,798,625
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 405,672 682,399 433,023 255,033 1,739,945 3,886,744
----------- ----------- ----------- ----------- ----------- -----------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Contributions 1,261,458 1,290,860 555,589 472,341 1,525,356 1,782,414
Withdrawals (184,866) (144,796) (104,749) (157,392) (166,252) (203,751)
----------- ----------- ----------- ----------- ----------- -----------
Net increase from investors'
transactions: 1,076,592 1,146,064 450,840 314,949 1,359,104 1,578,663
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 1,482,264 1,828,463 883,863 569,982 3,099,049 5,465,407
NET ASSETS:
Beginning of period 3,878,314 2,049,851 5,107,585 4,537,603 15,575,758 10,110,351
----------- ----------- ----------- ----------- ----------- -----------
End of period $5,360,578 $3,878,314 $5,991,448 $5,107,585 $18,674,807 $15,575,758
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTARY DATA
- ----------------------------------------------------------------------------------------------------------------
EMERGING GROWTH PORTFOLIO INTERNATIONAL EQUITY PORTFOLIO
---------------------------------------------- ----------------------------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED FOR THE PERIOD ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, DECEMBER OCTOBER 3, 1994(A) JUNE 30, DECEMBER OCTOBER 3, 1994(A)
1996 31, TO DECEMBER 31, 1996 31, TO DECEMBER 31,
(UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994
----------- ----------- -------------------- ----------- ----------- --------------------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS (B):
Expenses 1.61% 1.59% 2.56% 1.69% 1.65% 3.20%
Net investment income (loss) (0.23%) (0.12%) 5.51% 1.14% 0.09% (1.68%)
Ratios of expenses to average net
assets without waiver and
reimbursement 2.89% 3.59% 7.35% 3.33% 3.87% 4.62%
Portfolio turnover 61% 109% 150% 47% 90% 7%
Average commission rate (c) $ 0.0609 $ 0.0231
<CAPTION>
SUPPLEMENTARY DATA
- -----------------------------------
GROWTH & INCOME PORTFOLIO
----------------------------------------------
FOR THE SIX
MONTHS FOR THE
ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, DECEMBER OCTOBER 3, 1994(A)
1996 31, TO DECEMBER 31,
(UNAUDITED) 1995 1994
----------- ----------- --------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS (B):
Expenses 0.66% 1.23% 1.20%
Net investment income (loss) 1.22% 0.91% 1.11%
Ratios of expenses to average net
assets without waiver and
reimbursement 1.36% 1.53% 1.95%
Portfolio turnover 54% 102% 10%
Average commission rate (c) $ 0.0576
</TABLE>
- ------------------------------
(a) Commencement of operations.
(b) Ratios are annualized. Turnover is not annualized.
(c) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary between
periods and funds depending on the volume and character of trades executed
in various markets where trading practices and commission rate structures
may differ.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME OPPORTUNITY
BALANCED PORTFOLIO PORTFOLIO
------------------------ ------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER JUNE 30, DECEMBER
1996 31, 1996 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 33,622 $ 53,853 $ 165,706 $ 259,088
Net realized gain (loss) on
investments 106,123 169,621 97,510 8,065
Net change in unrealized
appreciation (depreciation) on
investments (1,406) 252,839 84,627 185,892
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations 138,339 476,313 347,843 453,045
----------- ----------- ----------- -----------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Contributions 534,402 537,632 1,713,503 416,695
Withdrawals (89,550) (125,201) (268,226) (132,490)
----------- ----------- ----------- -----------
Net increase from investors'
transactions: 444,852 412,431 1,445,277 284,205
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 583,191 888,744 1,793,120 737,250
NET ASSETS:
Beginning of period 2,884,807 1,996,063 2,581,456 1,844,206
----------- ----------- ----------- -----------
End of period $3,467,998 $2,884,807 $4,374,576 $2,581,456
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
<CAPTION>
MUNICIPAL BOND PORTFOLIO
BOND PORTFOLIO ------------------------
-------------------------- FOR THE SIX
FOR THE SIX MONTHS FOR THE
MONTHS ENDED FOR THE ENDED YEAR ENDED
JUNE 30, YEAR ENDED JUNE 30, DECEMBER
1996 DECEMBER 31, 1996 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 386,965 $ 754,683 $ 46,759 $ 105,093
Net realized gain (loss) on
investments (17,253) 254,000 1,920 (4,076)
Net change in unrealized
appreciation (depreciation) on
investments (596,168) 768,522 (64,562) 90,026
------------ ------------ ----------- -----------
Net increase (decrease) in net
assets resulting from operations (226,456) 1,777,205 (15,883) 191,043
------------ ------------ ----------- -----------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Contributions 439,416 872,705 313,870 393,280
Withdrawals (102,779) (104,885) (72,388) (111,371)
------------ ------------ ----------- -----------
Net increase from investors'
transactions: 336,637 767,820 241,482 281,909
------------ ------------ ----------- -----------
TOTAL INCREASE IN NET ASSETS 110,181 2,545,025 225,599 472,952
NET ASSETS:
Beginning of period 12,626,794 10,081,769 2,488,837 2,015,885
------------ ------------ ----------- -----------
End of period $12,736,975 $12,626,794 $2,714,436 $2,488,837
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO INCOME OPPORTUNITY PORTFOLIO
---------------------------------------------- ----------------------------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED FOR THE PERIOD ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, DECEMBER OCTOBER 3, 1994(A) JUNE 30, DECEMBER OCTOBER 3, 1994(A)
1996 31, TO DECEMBER 31, 1996 31, TO DECEMBER 31,
(UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994
----------- ----------- -------------------- ----------- ----------- --------------------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS (B):
Expenses 1.54% 1.51% 1.33% 1.38% 1.42% 2.20%
Net investment income (loss) 2.17% 2.29% 3.13% 10.50% 12.53% 8.09%
Ratios of expenses to average net
assets without waiver and
reimbursement 3.74% 4.39% 6.48% 3.58% 4.77% 7.48%
Portfolio turnover 47% 121% 7% 117% 120% 144%
Average commission rate (c) $ 0.0693
<CAPTION>
SUPPLEMENTARY DATA
- -----------------------------------
BOND PORTFOLIO MUNICIPAL BOND PORTFOLIO
---------------------------------------------- ----------------------------------------------
FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED FOR THE PERIOD ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, DECEMBER OCTOBER 3, 1994(A) JUNE 30, DECEMBER OCTOBER 3, 1994(A)
1996 31, TO DECEMBER 31, 1996 31, TO DECEMBER 31,
(UNAUDITED) 1995 1994 (UNAUDITED) 1995 1994
----------- ----------- -------------------- ----------- ----------- --------------------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS (B):
Expenses 0.80% 1.02% 1.21% 1.28% 1.24% 1.30%
Net investment income (loss) 6.25% 6.66% 6.32% 3.67% 4.66% 4.42%
Ratios of expenses to average net
assets without waiver and
reimbursement 1.32% 1.40% 1.76% 3.75% 4.26% 6.54%
Portfolio turnover 45% 78% 11% 5% 54% 4%
Average commission rate (c)
</TABLE>
25
<PAGE>
SELECT ADVISORS PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES:
Select Advisors Portfolios (the "Portfolio Trust") is registered under the
Investment Company Act of 1940 ("the Act"), as amended, as an open-end
management investment company organized as a New York master trust fund on
February 7, 1994. There are nine subtrusts of the Portfolio Trust (each a
"Portfolio"), each having distinct investment objectives and policies. The
Portfolios are Emerging Growth Portfolio, International Equity Portfolio, Growth
& Income Portfolio, Balanced Portfolio, Income Opportunity Portfolio, Bond
Portfolio, Municipal Bond Portfolio, Bond Portfolio II and Growth & Income
Portfolio II. Bond Portfolio II and Growth & Income Portfolio II are included in
a separate report.
The accounting policies are in conformity with generally accepted accounting
principles ("GAAP") for investment companies. The preparation of financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the related amounts and disclosures in the financial
statements. Actual results could differ from these estimates.
The following is a summary of the significant accounting policies of the
Portfolios:
a) INVESTMENT VALUATION. The value of each security for which readily
available market quotations exists is based on a decision as to the broadest and
most representative market for such security. The value of such security is
based either on the last sale price on a national securities exchange, or, in
the absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on a foreign exchange are valued at the last quoted sale price
available before the time net assets are valued. Unlisted securities are valued
at the average of the quoted bid and asked prices in the over-the-counter
market. Debt securities are valued by a pricing service which determines
valuations based upon market transactions for normal, institutional-size trading
units of similar securities. Securities or other assets for which market
quotations are not readily available are valued at fair value in good faith in
accordance with procedures established by the Trustees of the Portfolio Trust.
Such procedures include the use of independent pricing services, which use
prices based upon yields or prices of securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. All debt securities with a remaining maturity of less than 60 days
are valued at amortized cost, which approximates market.
b) FOREIGN CURRENCY TRANSLATION. The accounting records of the Portfolios
are maintained in U.S. dollars. The market value of investment securities, other
assets and liabilities and forward contracts denominated in foreign currencies
are translated into U.S. dollars at the prevailing exchange rates at the end of
the period. Purchases and sales of securities, income receipts, and expense
payments are translated at the exchange rate prevailing on the respective dates
of such transactions. Reported net realized gains and losses on foreign currency
transactions represent net gains and losses from sales and maturities of forward
currency contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions and
the difference between the amount of net investment income accrued and the U.S.
dollar amount actually received.
The effects of changes in foreign currency exchange rates on investments in
securities are not segregated in the Statement of Operations from the effects of
changes in market prices of these securities, but are included with net realized
and unrealized gain or loss on investments.
c) INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date
except that certain dividends from foreign securities where the ex-dividend date
has passed are recorded as soon as the Portfolio Trust is informed of the
ex-dividend date. Interest income, which includes the amortization of premium
and accretion of discount, if any, is recorded on an accrual basis. Dividend and
interest income is recorded net of foreign taxes where recovery of such taxes is
not assured.
d) FEDERAL TAXES. Each Portfolio is treated as a partnership for federal
income tax purposes. As such, each investor in each Portfolio is subject to
taxation on its share of that Portfolio's ordinary income and capital gains. It
is intended that each Portfolio's assets will be managed in such a way that an
investor in the Portfolio will be able to satisfy the requirements of Subchapter
M of the Internal Revenue Code of 1986, as amended. Therefore, no provision has
been made for federal income taxes.
e) FORWARD CURRENCY CONTRACTS. Each Portfolio may enter into forward
foreign currency contracts to protect securities and related receivables and
payables against fluctuations in foreign currency rates. A forward contract is
an agreement to buy or sell currencies of different countries on a specified
future date at a specified rate.
26
<PAGE>
SELECT ADVISORS PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Risks associated with such contracts include the movement in the value of
the foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. The market value of the contract will fluctuate with
changes in currency exchange rates. Contracts are valued daily based on
procedures established by and under the general supervision of the Trustees of
the Portfolio Trust and the change in the market value is recorded by the
Portfolio as unrealized appreciation or depreciation of forward foreign currency
contracts.
f) REPURCHASE AGREEMENTS. Each Portfolio may invest in repurchase
agreements, which are agreements pursuant to which securities are acquired by
the Portfolio from a third party with the commitment that they will be
repurchased by the seller at a fixed price on an agreed upon date. Each
Portfolio may enter into repurchase agreements with banks or lenders meeting the
creditworthiness standards established by the Portfolio Trust Board of Trustees.
The Portfolio, through its custodian, receives as collateral, delivery of the
underlying securities, whose market value is required to be at least 102% of the
resale price at the time of purchase. The resale price reflects the purchase
price plus an agreed upon rate of interest. In the event of counterparty default
the Portfolio has the right to use the collateral to offset losses incurred.
g) ORGANIZATION EXPENSE. Organization expenses were deferred and are being
amortized by each Portfolio on a straight-line basis over a five-year period
from commencement of operations. Each Fund's organizational fees payable
includes fees and expenses payable to Touchstone Advisors, Inc. of $35,878. Any
amount received by the Portfolio from a corresponding Fund as a result of a
redemption by Touchstone Advisors, Inc. of any of its organizational seed
capital shares of the Fund will be applied so as to reduce the amount of
unamortized organization expenses. The amount paid by the Portfolio Trust on any
withdrawal by the Select Advisors Trust A or Select Advisors Trust C of all or a
part of its organizational seed capital investment ("Initial Interest") in the
Portfolio will be reduced by a portion of any unamortized organization expenses
of the Portfolio, determined by the proportion of the amount of the Initial
Interest withdrawn to the aggregate amount of the Initial Interests in the
Portfolio then-outstanding after taking into account any prior withdrawals of
any portion of the Initial Interests in the Portfolio.
h) OTHER. Securities transactions are recorded on a trade date basis. For
financial and tax reporting purposes, realized gains and losses are determined
on the basis of specific lot identification.
2. TRANSACTIONS WITH AFFILIATES
a) INVESTMENT ADVISOR. The Portfolio Trust has an investment advisory
agreement with Touchstone Advisors, Inc. (the "Advisor") a subsidiary of
Western-Southern Life Assurance Company ("Western-Southern"). Under the terms of
the investment advisory agreement, each Portfolio pays an investment advisory
fee that is computed daily and paid monthly. For the six months ended June 30,
1996, each Portfolio incurred the following investment advisory fees equal on an
annual basis to the following percentages of the average daily net assets of the
Portfolio.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL GROWTH & INCOME MUNICIPAL
GROWTH EQUITY INCOME BALANCED OPPORTUNITY BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Rate 0.80% 0.95% 0.75% 0.70% 0.65% 0.55% 0.55%
</TABLE>
Fort Washington Investment Advisors, Inc., an affiliate of the Advisor, is
the sub-advisor for the Growth & Income Portfolio and Bond Portfolio.
b) ADMINISTRATOR AND FUND ACCOUNTANT. The Portfolio Trust retains
Signature Financial Services, Inc. ("Signature") to serve as administrator and
fund accountant. Certain officers of Signature serve as officers of the
Portfolios. Signature provides administrative services necessary for the
operations of the Portfolios, including the preparation and filing of all
documents required by the Portfolio Trust for compliance with applicable laws
and regulations; arranging for the maintenance of books, records and custody of
the Portfolios; and paying the compensation of the Portfolio Trust's officers
affiliated with Signature. For these services, Signature receives from each
Portfolio a fee that is computed daily and paid monthly equal on an annual basis
to 0.20% of the aggregate average daily net assets of all the Portfolios. Rates
are reduced on a sliding scale when combined average net assets of all the
Portfolios exceed $100 million. In addition, each Portfolio is subject to a
minimum annual fee of $60,000 plus out-of-pocket expenses.
c) TRUSTEES. Each Trustee who is not an "interested person", (as defined
in the Act), of the Portfolio Trust receives in aggregate $5,000 annually plus
$1,000 per meeting attended as well as reimbursement for reasonable
out-of-pocket expenses from the Portfolio Trust and from Select Advisors Trust
A, Select Advisors Trust C, and Select Advisors Variable Insurance Trust, which
are included in separate reports.
27
<PAGE>
SELECT ADVISORS PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF INVESTMENT SECURITIES
Investment transactions (excluding purchases and sales of U.S. government
and U.S. government agency obligations and excluding short-term investments) for
the six months ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL GROWTH & INCOME MUNICIPAL
GROWTH EQUITY INCOME BALANCED OPPORTUNITY BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------- ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Cost of purchases $ 3,033,729 $ 3,630,754 $ 10,445,763 $ 1,121,499 $ 4,776,697 $ 4,036,197 $ 319,861
Proceeds from sales 2,677,178 2,440,075 9,189,800 1,020,810 3,458,394 3,319,374 209,191
</TABLE>
The following Portfolios had transactions in U.S. government and U.S.
government agency obligations:
<TABLE>
<CAPTION>
INCOME
BALANCED OPPORTUNITY BOND
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- ------------
<S> <C> <C> <C>
Cost of purchases $ 614,773 $ 121,595 $ 1,525,581
Proceeds from sales 379,815 115,845 1,991,336
</TABLE>
4. EXPENSE REIMBURSEMENTS
For the six months ended June 30, 1996, the Advisor has voluntarily agreed
to reimburse each Portfolio in order to reduce operating expenses.
5. RESTRICTED SECURITIES
As of June 30, 1996, Bond Portfolio held restricted securities valued at
$1,047,388, representing 8.2% of net assets. Acquisition date and cost of each
are as follows:
<TABLE>
<CAPTION>
ACQUISITION
DATE COST
--------------- ----------
<S> <C> <C>
Mercantile Safe Deposit 3/28/85 $ 105,603
Central America, Series F 8/1/86 150,000
Central America, Series G 8/1/86 150,000
Central America, Series H 8/1/86 150,000
Republic of Honduras, Series B 5/1/88 92,683
Republic of Honduras, Series C 5/1/88 100,000
Republic of Honduras, Series D 5/1/88 100,000
Star Banc Corporation 7/23/91 42,857
</TABLE>
Bond Portfolio received these securities from Western-Southern on October 4,
1994 in exchange for a proportionate interest in the Portfolio.
28
<PAGE>
DISTRIBUTOR
Touchstone Securities, Inc.
311 Pike Street
Cincinnati, Ohio 45202
(800) 669-2796
INVESTMENT ADVISOR OF EACH PORTFOLIO
Touchstone Advisors, Inc.
311 Pike Street
Cincinnati, Ohio 45202
ADMINISTRATOR
Signature Financial Services, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
TRANSFER AGENT
State Street Bank and Trust Company
P.O. Box 8518
Boston, Massachusetts 02266-8518
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, Massachusetts 02109
LEGAL COUNSEL
Frost & Jacobs
2500 PNC Center
201 East 5th Street
Cincinnati, Ohio 45202
- --------------------------------------------------------------------------------
T O U C H S T O N E
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THE MARK OF EXCELLENCE IN INVESTMENT MANAGEMENT-SM-
FORM 7076-9606
