<PAGE>
ALLMERICA SELECT
SEMI-ANNUAL REPORT
JUNE 30, 1995
ALLMERICA SELECT LIFE
<PAGE>
ALLMERICA SELECT GIVES YOU ACCESS TO SOME OF THE
WORLD'S LEADING MONEY MANAGERS, SELECTED AND MONITORED
BY INDEPENDENT INDUSTRY EXPERTS.
IT OFFERS YOU EXPERTISE AND ADVANTAGES TYPICALLY RESERVED FOR
THE NATION'S LARGEST AND MOST SOPHISTICATED INVESTORS:
ACCESS TO A RANGE OF HIGHLY RESPECTED MONEY MANAGERS.
THE COMPREHENSIVE RESEARCH CAPABILITIES OF A NATIONALLY RECOGNIZED
PENSION CONSULTING FIRM, TO HELP IDENTIFY THE MOST QUALIFIED AND BEST SUITED
MONEY MANAGERS REPRESENTING A RANGE OF INVESTMENT APPROACHES.
THE OPPORTUNITY TO DIVERSIFY ACROSS ASSET CATEGORIES AND INVESTMENT
STYLES -- TO BETTER MEET YOUR INVESTMENT NEEDS.
OBJECTIVE MONITORING OF THE MONEY MANAGERS' PERFORMANCE BY
ALLMERICA SELECT'S MANAGER EVALUATION COMMITTEE, MADE UP OF
HIGHLY EXPERIENCED INDUSTRY PROFESSIONALS.
PERSONALIZED PERFORMANCE REPORTS AND TIMELY MARKET UPDATES
TO HELP KEEP YOU ON TARGET.
BEST OF ALL, IN ADDITION TO INSTITUTIONAL MONEY MANAGEMENT,
ALLMERICA SELECT OFFERS TAX ADVANTAGES AND GUARANTEES.
<PAGE>
GENERAL INFORMATION
BOARD OF TRUSTEES
John F. O'Brien, Chairman
Russell E. Fuller
Gordon Holmes
John D. Hunt
John Kavanaugh
Amiat F. Ott
Richard M. Reilly
Ranne P. Warner
Thomas S. Zocco
GENERAL DISTRIBUTOR
Allmerica Investments, Inc.
440 Lincoln Street
Worcester, MA 01653
OFFICERS OF SMA LIFE ASSURANCE COMPANY
Bradford K. Gallagher, President and CEO
Edward J. Parry, III, Vice President and Treasurer
Mark R. Colborn, Vice President and Controller
OFFICERS OF ALLMERICA INVESTMENTS, INC.
Richard M. Reilly, President
Eric S. Levy, Vice President and Treasurer
Robert T. Stemple, Vice President and Principal Accounting Officer
INVESTMENT MANAGER
Allmerica Investment Management Co., Inc.
440 Lincoln Street
Worcester, MA 01653
INDEPENDENT ACCOUNTANT
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
CUSTODIAN
The Chase Manhattan Bank, N.A.
1211 Avenue of the Americas
New York, NY 10036
ADMINISTRATOR
The Shareholder Services Group, Inc.
290 Donald Lynch Boulevard
Marlboro, MA 01752
LEGAL COUNSEL
Ropes & Gray
One International Place
Boston, MA 02110
INVESTMENT SUB-ADVISERS
Allmerica Asset Management, Inc.
440 Lincoln Street
Worcester, MA 01653
MONEY MARKET FUND
Bank of Ireland Asset Management Limited
2 Greenwich Plaza
Greenwich, CT 06830
SELECT INTERNATIONAL EQUITY FUND
Janus Capital Corporation
100 Fillimore Street -- Suite 300
Denver, CO 80206
SELECT CAPITAL APPRECIATION FUND
John A. Levin & Co., Inc.
One Rockefeller Plaza
New York, NY 10020
SELECT GROWTH & INCOME FUND
Nicholas-Applegate Capital Management
501 West Broadway -- Suite 2000
San Diego, CA 92101
SELECT AGGRESSIVE GROWTH FUND
Provident Investment Counsel
300 North Lake Avenue
Pasadena, CA 91101
SELECT GROWTH FUND
Standish, Ayer & Wood, Inc.
One Financial Center
Boston, MA 02111
SELECT INCOME FUND
INVESTMENT ADVISERS
Fidelity Management & Research Company
82 Devonshire Street
Boston, MA 02108
FIDELITY'S VIPF EQUITY-INCOME PORTFOLIO
FIDELITY'S VIPF GROWTH PORTFOLIO
FIDELITY'S VIPF HIGH INCOME PORTFOLIO
Rowe Price-Fleming International, Inc.
100 E. Praft Street
Baltimore, MD 21202
T. ROWE PRICE'S INTERNATIONAL STOCK PORTFOLIO
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
A LETTER FROM THE CHAIRMAN................................. 2
PERFORMANCE SUMMARY........................................ 3
DOMESTIC & INTERNATIONAL EQUITY MARKET OVERVIEW............ 4-5
SELECT INTERNATIONAL EQUITY FUND........................... 6
T. ROWE PRICE'S INTERNATIONAL STOCK PORTFOLIO.............. 7
SELECT AGGRESSIVE GROWTH FUND.............................. 8
SELECT CAPITAL APPRECIATION FUND........................... 9
SELECT GROWTH FUND......................................... 10
FIDELITY'S VIPF GROWTH PORTFOLIO........................... 11
SELECT GROWTH AND INCOME FUND.............................. 12
FIDELITY'S VIPF EQUITY-INCOME PORTFOLIO.................... 13
BOND MARKET OVERVIEW....................................... 14-15
FIDELITY'S VIPF HIGH INCOME PORTFOLIO...................... 16
SELECT INCOME FUND......................................... 17
MONEY MARKET OVERVIEW...................................... 18
MONEY MARKET FUND.......................................... 19
FINANCIALS................................................. 20-49
</TABLE>
FOR FURTHER INFORMATION, SEE THE ACCOMPANYING SEMI-ANNUAL REPORTS.
1
<PAGE>
A LETTER FROM THE CHAIRMAN
[Picture of John F. O'Brien, Chairman of the company.]
Dear Client:
What a difference six months can make. At the end of 1994, we reported
that both stocks and bonds declined in value for the year -- a somewhat rare
phenomenon. Now I'm pleased to say that for the first six months of 1995, the
story is reversed -- in general, stocks and bonds generated strong returns.
In each case, specific economic and financial developments triggered changes
in investor psychology and sharp upward swings in the financial markets. The
only underachievers were cash and money-market investments.
Bolstered by declining interest rates, moderate inflation, and slower
economic growth, bonds posted double-digit returns in the first half of 1995,
more than recovering from the declines of 1994.
Lower interest rates and relatively low inflation also had a positive
effect on stocks. The attractiveness of stocks was further enhanced by strong
corporate earnings, a weak U.S. dollar, and continued efforts by corporate
America to improve productivity and efficiency. These factors sparked
continued stock buying by individuals through equity and mutual funds. In the
first six months of the year ending June 30, 1995, the Standard & Poor's 500
Stock Index (S&P 500), an unmanaged index of common stocks, rose more than
20%.
The steep rise in the stock and bond markets this year demonstrates the
value of taking a long-term approach to investing and of not reacting to
short-term market activity. Many investors who abandoned their long-term
investments in 1994 and early 1995 lost money, because they sold at market
lows. However, those who stuck with their investments during last year's
rough periods were rewarded in 1995.
It would be unrealistic to think that the financial markets will
continue to rise without some adjustment. No one knows when the markets may
stage a correction. But as we have stressed so often, we urge you to
recognize that market fluctuations are a normal part of the investment cycle.
We encourage you to take a long-term perspective when making investment
decisions, to diversify your investments, and to review them periodically to
make sure they are in line with your objectives and financial goals.
At Allmerica the investment philosophy of our managers remains intact
during market advances and declines. Our investment decisions are based on
long-term economic and business fundamentals. We seek securities that are
attractively priced and that have the potential to provide investors with
solid returns over the long-term.
On Behalf of the Board of Directors,
/s/ John E. O'Brien
John E. O'Brien
Chairman, SMA Life Assurance Company
-----------------------------------------
"THE STEEP RISE IN THE STOCK AND BOND
MARKETS THIS YEAR DEMONSTRATES THE
VALUE OF TAKING A LONG-TERM APPROACH
TO INVESTING AND OF NOT REACTING TO
SHORT-TERM MARKET ACTIVITY."
-----------------------------------------
2
<PAGE>
PERFORMANCE SUMMARY
ALLMERICA SELECT LIFE - Average Annual Total Returns as of 6/30/95
<TABLE>
<CAPTION>
LIFE OF
ONE SUB
SUBACCOUNTS YEAR ACCT+
----------- ---- -------
<S> <C> <C>
ALLMERICA INVESTMENT TRUST
Select International Equity Fund(1) N/A 3.40%
Select Aggressive Growth Fund(1) N/A 8.09%
Select Capital Appreciation Fund(1) N/A 13.03%
Select Growth Fund(1) N/A 12.09%
Select Growth and Income Fund(1) N/A 5.87%
Select Income Fund(1) N/A 4.20%
Money Market Fund(1) N/A 0.80%
ROWE PRICE-FLEMING INTERNATIONAL, INC.
T. Rowe Price's International Stock Portfolio(1) N/A 0.00%
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (VIPF)
Growth Portfolio(1) N/A 13.81%
Equity-Income Portfolio(1) N/A 4.10%
High Income Portfolio(1) N/A 2.62%
</TABLE>
ALLMERICA SELECT LIFE
Upon surrender, a policy issued to a 36 year-old male, non-smoker for
$250,000 with an $3,300 premium would be subject to a contingent deferred
sales charge representing the following percentages of cumulative premiums:
<TABLE>
<CAPTION>
1 YEAR 2 YEARS 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
87.4% 43.7% 25.5% 10.9% 0.0%
</TABLE>
For the same policy described above, the cost of insurance, which assures
beneficiaries receive the full benefit payable through the policy, would
represent the following percentage of cumulative premiums:
<TABLE>
<CAPTION>
1 YEAR 2 YEARS 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
12.6% 6.7% 4.7% 3.2% 2.1%
</TABLE>
Performance figures given above are for the subaccounts of Allmerica Select
which invest in the underlying funds listed.
Performance numbers in this report are historic and are not indicative of
future results. The investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
(1) Inception April 28, 1995
+ Unannualized.
The performance figures shown do not reflect cost of insurance because the
cost can vary with an insured's age and health, among other factors. An
example showing the percentage of a premium that cost of insurance can
represent is included next to the performance chart.
All funds are not available in all states.
FOR MORE INFORMATION ABOUT PERFORMANCE OF THE UNDERLYING FUNDS, SEE THE
PERFORMANCE REVIEWS BEGINNING ON PAGE 6.
3
<PAGE>
DOMESTIC &
INTERNATIONAL
EQUITY MARKET
OVERVIEW
1990-1991: Economic recession
in the United States. A deep depression
affects much of the former Soviet bloc
countries.
1992: U.S. economy continues its
slow recovery. Larger companies
downsize while smaller firms thrive.
1993: A year of low regional interest
rates and strong growth in the emerging
markets.
1994: Federal Reserve Board raises
interest rates six times stalling equity
markets.
The U.S. equity markets posted a strong advance during the first half of
1995. Investors reacted positively to preliminary economic and inflationary
news which indicated that the Federal Reserve Board's series of interest rate
hikes had slowed the economy and subdued inflationary pressures. In addition
to the favorable economic reports, the U.S. equity markets were bolstered by
the strong first quarter corporate earnings reports, large cash inflows from
both retail and institutional investors, and a rally in the fixed income
markets. U.S. investors were rewarded as the leading U.S. markets set record
highs during the six-month period, with the Dow Jones Industrial Average
crossing the 4600 level, and the S&P 500 Index, an unmanaged index of common
stocks, gaining more than 20% over the six-month period ending June 30, 1995.
The tremendous bull market was fueled largely by technology stocks, with the
semiconductor sector producing extraordinary gains as the demand for PCs and
the Pentium chip drove industry and individual company earnings. The financial
sector, especially bank stocks, also contributed to the strong market advance,
as these stocks benefited from lower interest rates and the trend towards
consolidation.
The international markets, in aggregate, turned in only modest performance
during the first half of the year. The Morgan Stanley Capital Index of
European, Australian and Far East stocks (MSCI EAFE) gained 2.76% for the six-
month period. Japan's economic woes
[GRAPHIC]
Weak U.S.
Profit at dollar causes
major U.S. international
corporation companies
surge to suffer
| |
--------------------------------------------------------------------------------
1995 JAN 95 FEB 95 MARCH 95
--------------------------------------------------------------------------------
| |
Real GDR grew Barings/
at an annual Singapore
rate of 2.8% collapse
causes Nikkei
to drop 3.8%
4
<PAGE>
were largely responsible for the sluggish results. Trade tensions with the
United States, the ineffectiveness of the Japanese government in dealing with
the banking crisis, and forecasts for slow economic growth kept the Japanese
market depressed. The Morgan Stanley Capital Index of Japan (MSCI Japan) LOST
8.2% from December 31, 1994 to June 30, 1995. The decrease in the value of the
dollar versus the yen was also detrimental to Japan's market because as the
value of the dollar declines, U.S. products and services gain a price advantage
over foreign competition.
International equity mutual funds slightly outpaced the MSCI EAFE Index,
with a 2.90% return over the six-month period, as reported by Morningstar.
Investment portfolios with a heavy European focus fared well, while funds with a
large emphasis in Japan and Latin America struggled. Mexico has still not
recovered from the devastation it experienced in the latter part of 1994 and
early 1995. However, investors are once again starting to return to Mexico as
economic indicators signal some success in dealing with the financial crisis.
Ahead may be more volatile times in the international arena, as a slowdown
in the U.S. markets could have negative effects throughout the foreign markets.
[GRAPHIC]
Demand for
Lower interest PCs and the DJIA up 19%
rates fuel Pentium chip for the period,
market rallies cause best six months
in developing technology in the market
Asia stocks to soar since 1990
| | |
--------------------------------------------------------------------------------
APRIL 95 MAY 95 JUNE 95
--------------------------------------------------------------------------------
| | |
Mexican Dow Jones MSCI EAFE
crisis eases -- Industrial Index posts a
investors Average breaks modest 2.76%
begin to through 4600 return for the
return mark six-month
to Mexico period
[GRAPHIC]
5
<PAGE>
SELECT INTERNATIONAL EQUITY FUND
INVESTMENT SUB-ADVISER:
Bank of Ireland Asset Management
Limited
ABOUT THE FUND:
Invests in companies around the world
based on fundamental value and an
adherence to sound business strategies.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Select International Equity Fund 9.55%
Morgan Stanley EAFE Index 2.76%
Lipper International Index 2.50%
PORTFOLIO COMPOSITION:
As of June 30, 1995, the geographic
distributions of net assets were:
Japan 3.36%
Switzerland 8.66
Australia 9.84
Netherlands 13.36
United Kingdom 29.43
Cash Equivalents 6.56
Other 28.79
Many foreign stock markets got off to a weak start in 1995. During the
first quarter, foreign stock prices fluctuated as concerns about inflation,
interest rates, and political instability dominated market sentiment. At
the end of March, the German Bundesbank lowered interest rates and France,
Swizerland, and the Netherlands followed. Lower interest rates led to market
rallies in many countries during the second quarter. The strong growth of
the US stock market combined with a weak dollar also had a positive affect on
many countries, particularly those in the Far East (excluding Japan) whose
currencies are linked to the US dollar. Due to Bank of Ireland's view that
the dollar is undervalued, a conservative strategy has been implemented.
For the six-month period ending June 30, 1995, the Portfolio
significantly outperformed the Morgan Stanely EAFE Index. Interest rate
declines benefited a number of stocks in the Portfolio, particularly those of
finance companies sensitive to interest rate moves. Impressive earnings
reported by pharmaceutical companies led management to refocus on this
sector. As investors purchased pharmaeutical stocks, cyclical stocks became
less attractive. While the cyclical stocks in the Portfolio underperformed,
they maintained their strong economic fundementals, therefor, the Portfolio's
management intends to keep them in the Portfolio.
Most Continental European markets rallied during the second quarter.
The market in the United Kingdom was strong due to better-than-expected
coporate earnings and a rise in takeover activity. Of the major European
markets, France provided the poorest return. This was attributed to the
government's efforts to combat high unemployment and an escalating budget
deficit.
The weakness in the Pacific Rim markets continued into early 1995.
However, once fears about the Mexican economic crisis subsided and US
interest rates declined, most Pacific Rim markets rebounded. Portfolio
managements strategy in the Pacific Rim emphasized consumer stocks, which
generated strong gains during the period.
Several factors contributed to a decline in Japanese stocks: the Kobe
earthquake, appreciation ot the yen and negative reaction to the government's
stuimilus package. Fortunately, the Portfolio had a small position in
Japanese stocks.
Going forward, the Portfolio's management will continue to emphasize
stocks of medium and large international companies whose potential for strong
earnings is reflected in their market valuations.
<TABLE>
<CAPTION>
GROWTH OF A $10,000 INVESTMENT SINCE 1994
5/2/94 6/95
------- -------
<S> <C> <C>
Select International Equity Fund $10,000 $10,573
Morgan Stanley EAFE Index $10,000 $10,285
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select International Equity Fund, since its inception
on May 2, 1994, to a similar group of investments; the MSCI EAFE Index.
Performance benchmarking allows investors to objectively measure their fund's
performance.
-------------------------------------------------------------------------------
THE MORGAN STANLEY EAFE INDEX IS AN UNMANAGED INDEX OF EUROPEAN, AUSTRALIAN &
FAR EAST STOCKS. PERFORMANCE NUMBERS ARE NOT OF ALL FUND OPERATING EXPENSES,
BUT DO NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE INFORMATION INCLUDED THE
EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE BEEN LOWER.
6
<PAGE>
T. ROWE PRICE'S INTERNATIONAL STOCK PORTFOLIO
International equity markets performed stronger in the second quarter of 1995
than in the first, with most markets posting positive gains. T. Rowe Price's
International Stock Portfolio finished the first six months of the year ahead of
the Morgan Stanley EAFE Index. The Portfolio's geographic focus did not
significantly change over the last six months, maintaining a heavy emphasis on
the European markets with only selective investments in Japan.
In Europe, economies continued to recover and strengthen -- an environment
which benefited the Portfolio's heavy European orientation. Meanwhile, markets
in the Far East (excluding Japan) and Latin America were boosted by more stable
interest rates in the U.S. The Japanese stock market continued its downward
trend, as the trade disputes with the U.S. heated up. The broad selling of
Japanese stocks further spurred negative sentiment among investors. Despite
this difficult environment, Rowe Price-Fleming International, Inc. believes
Japan will still remain a strong force over the long-term. Therefore, the
Portfolio's management will focus on areas of the Japanese market which they
expect to benefit when the economy inevitably recovers. They will also seek
international companies that make excellent products but have lost their
competitive position due to the strong yen. These companies suffer when the yen
becomes more expensive compared to the U.S. dollar and the demand for cheaper
U.S. goods and services increase. The Portfolio's management expects this trend
to moderate, making these companies more attractive.
Looking forward, the continued recovery in Europe along with the return of
confidence in Latin American investments, and the continued expansion of already
strong economies in the Far East (excluding Japan) markets, will most likely
help drive Portfolio returns higher during the second half of 1995. Rowe Price-
Fleming will continue to use fundamental research from more than 110 on-site
global analysis to provide investors with a highly diversified international
stock portfolio committed to long-term stability and performance.
INVESTMENT ADVISER:
Rowe Price-Fleming International, Inc.
ABOUT THE FUND:
The Portfolio's strategy broadens
diversification by carefully managing exposure to
small companies and emerging markets.
PERFORMANCE:
net total return for the six-month period
ending June 30, 1995:
T Rowe Price's International
Stock Portfolio 3.87%
Morgan Stanley EAFE Index 2.80%
Lipper International Index 2.50%
PORTFOLIO COMPOSITION:
As of June 30, 1995, the geographical
allocations of net assets were:
Europe 50.0%
Japan 23.0
Far East 12.0
Latin America 4.0
Other 11.0
<TABLE>
<CAPTION>
3/94 6/95
------- -------
<S> <C> <C>
T. Rowe Price's International Stock Portfolio $10,000 $10,574
Morgan Stanley EAFE Index $10,000 $10,619
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in T. Rowe Price's International Stock Portfolio, since its
inception on March 31, 1994, to a similar group of investments; the Morgan
Stanley EAFE Index. Performance benchmarking allows investors to objectively
measure their portfolio's performance.
-------------------------------------------------------------------------------
THE MORGAN STANLEY EAFE INDEX IS AN UNMANAGED INDEX OF EUROPEAN, AUSTRALIAN &
FAR EAST STOCKS. PERFORMANCE NUMBERS ARE NOT OF ALL FUND OPERATING EXPENSES,
BUT DO NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE INFORMATION INCLUDED THE
EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE BEEN LOWER.
7
<PAGE>
SELECT AGGRESSIVE GROWTH FUND
The Equity markets soared during the first half of 1995 as an unexpected bond
rally and a declining dollar led market indices to record highs. The large
capitalization stock sector led the way for most of the first six months of the
year, significantly outperforming the small- and mid-capitalization sectors. A
narrow band of stocks fueled the market increase, with the largest 100 companies
in the S&P 500 Index, producing 72% of the total return. Technology stocks,
bolstered by increased demand for U.S. products, led the drive, followed by
financial services and energy stocks. Smaller stocks, which the Portfolio tends
to invest in, advanced later in the period, producing excellent gains in the
month of June. As a result, the Portfolio performed well in the first half of
the year, outperforming its benchmark, the Russell 2000 Index. The Portfolio's
management emphasized the technology and producer/manufacturing sectors with the
semiconductor and software industries, and the metals and paper industries
leading their respective sectors. The Portfolio's heavy emphasis on technology
stocks and producer/manufacturing stocks proved to be an effective strategy as
the majority of the Portfolio's gains came from investments in these two
industries.
Nicholas-Applegate's outlook for growth stocks remains very optimistic for
the next six to twelve months. The Portfolio should benefit if, as anticipated,
corporate profitability levels continue to rise and corporate earnings continue
to increase. Although small-cap stocks have lagged the market so far this year,
eventually the market should realize the earnings power that is being generated
by the smaller-cap stocks and reward investors.
INVESTMENT SUB-ADVISER:
Nicholas-Applegate Capital Management
ABOUT THE FUND:
Invests in companies whose potential
for rapidly growing earnings is not fully
reflected in their stock prices.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Select Aggressive Growth Fund 14.89%
Russell 2000 Index 14.42%
Lipper Capital Appreciation
Fund Index 17.02%
PORTFOLIO
COMPOSITION:
As of June 30, 1995, the sector
allocations of net assets were:
Electronics 9.25%
Cash Equivalents 0.79
Health Services 9.74
Financial 11.90
Consumer Products 12.09
Technology 22.50
Other 33.73
GROWTH OF A $10,000 INVESTMENT SINCE 1992
<TABLE>
<CAPTION>
8/92 6/95
------- -------
<S> <C> <C>
Select Aggressive Growth Fund $10,000 $16,077
Russell 2000 Index $10,000 $15,243
Lipper Capital Appreciation Fund Index $10,000 $15,245
</TABLE>
--------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select Aggressive Growth Fund, since its inception of
August 21, 1992, to a similar group of investments; the Russell 2000 Index and
Lipper Capital Appreciation Fund Index. Performance benchmarking allows
investors to objectively measure their fund's performance.
-------------------------------------------------------------------------------
THE RUSSELL 2000 INDEX IS AN UNMANAGED COMPOSITE OF 2,000 SMALL CAPITALIZATION
STOCKS. THE LIPPER CAPITAL APPRECIATION FUND INDEX IS A NON-WEIGHTED INDEX OF
THE 30 LARGEST CAPITAL APPRECIATION MUTUAL FUNDS. PERFORMANCE NUMBERS ARE NET
OF ALL FUND OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF
PERFORMANCE INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT
WOULD HAVE BEEN LOWER.
8
<PAGE>
SELECT CAPITAL APPRECIATION FUND
During the first six months of 1995, U.S. stocks staged a powerful rally.
Spurred by declining interest rates and strong corporate profits, U.S. stocks
rose 20.2% as measured by the S&P 500 Index, an unmanaged index of common
stocks. Although the Portfolio's inception occurred four months into the
period, Janus Capital Corporation was able to catch much of the market's rally.
Generally, returns on the stocks of large, multinational companies out-
paced those of medium-size and small companies. Because multinational companies
derive a significant portion of their revenues from foreign sales, these
companies benefited greatly from the decline in the U.S. dollar.
During the six-month period that ended June 30, 1995, financial stocks
were strong performers. Because financial stocks are sensitive to
interest-rate moves, they generally perform well in a declining interest rate
environment. During the Portfolio's first two months, it benefited from a
number of individual holdings in the financial sector, including World
Acceptance Corporation, a consumer finance company, and Insignia Financial
Group, the largest U.S. property manager. Other additions to the Portfolio
during the period included: R. P. Scherer, a developer of drug delivery
systems, and Minerals Technology, a producer of chemicals used in paper
making. The Portfolio intentionally avoided technology stocks due to their
volatility and high prices. However, these stocks were excellent performers
during the period, and the Portfolio's underweighting in this area hurt
performance.
Looking ahead, Janus believes that moderate economic growth, lower interest
rates and low inflation should provide a favorable environment for growth stocks
during the second half of 1995.
INVESTMENT SUB-ADVISER:
Janus Capital Corporation
ABOUT THE FUND: The Portfolio seeks value through strong
stock selection following a fundamental,
bottom-up approach.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Select Capital
Appreciation Fund 13.40%+
S&P 500 Index 20.09%
Lipper Capital Appreciation
Fund Index 17.02%
PORTFOLIO COMPOSITION*: As of June 30, 1995, the sector allocations of net
assets were:
Foreign Common Stocks 3.60%
US Government Backed Bonds 11.25
Commercial Paper 9.41
Chemicals & Drugs 15.24
Communications 11.15
Durable Goods 9.44
Consumer Staples 7.22
Technology 7.01
Other Common Stocks 29.88
*Other liabilities-4.20%
+Since inception on April 28, 1995
GROWTH OF A $10,000 INVESTMENT SINVE 1995
<TABLE>
<CAPTION>
4/95 6/95
------- -------
<S> <C> <C>
Select Capital Appreciation Fund $10,000 $11,340
S&P 500 Index -Registered Trademark- $10,000 $10,584
Lipper Capital Appreciation Fund Index $10,000 $11,627
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select Capital Appreciation Fund, since ins inception
on April 28, 1995, to a similar group of investments, the S&P 500 Index and the
Lipper Capital Appreciation Fund Index. Performance benchmarking allows
investors to objectively measure their fund's performance.
-------------------------------------------------------------------------------
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 LEADING STOCKS. S&P 500 INDEX IS
A REGISTERED TRADEMARK OF THE STANDARD & POOR'S CORPORATION. THE LIPPER CAPITAL
APPRECIATION FUND INDEX IS A NON-WEIGHTED INDEX OF THE 30 LARGEST FUNDS IN THE
CAPITAL APPRECIATION INVESTMENT OBJECTIVE. PERFORMANCE NUMBERS ARE NET OF ALL
FUND OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE
INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE BEEN
LOWER.
9
<PAGE>
SELECT GROWTH FUND
Economic activity slowed during the first half of 1995, after accelerating
through much of 1993 and 1994. As the economy slowed, interest rates fell and
set the stage for a "soft landing". However, corporate profits remain robust.
The combination of lower interest rates and strong corporate profits during the
first six months of 1995 resulted in an exploding stock market that reached new
highs.
Since the Portfolio invests in companies with above average growth rates,
this rally benefited the Portfolio and resulted in exceptional returns during
the last few months of the period. During the first few months of the year
there was strong evidence that the economy was headed for a slowdown. In
response, investors moved their assets from cyclical stocks to larger
capitalization growth stocks. This pushed the growth indices higher. However,
this movement of assets into large capitalization stocks caused prices to rise.
As demand increased, stock prices were bid up and investors then began seeking
investments with faster growth rates.
With the strong worldwide demand for U.S. products, the technology sector
realized exceptional gains during the period. With 21% of its assets invested
in technology stocks, the Portfolio benefited from this emphasis. Financial
services companies, representing approximately 12% of the Portfolio, also helped
boost investment returns as these stocks did well in an environment of declining
interest rates. In an effort to diversify, the Portfolio's management allocated
investments among a broad range of other industries, including communications,
retail and healthcare. In addition, the Portfolio maintained smaller
investments in industries such as aerospace, energy, entertainment, and
specialty chemicals.
Looking ahead, Provident Investment Counsel is encouraged by a favorable
environment for growth stocks.
INVESTMENT SUB-ADVISER:
Provident Investment Counsel
ABOUT THE FUND:
Invests in companies believed to have
long-term potential for strong earnings
and growth.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Select Growth Fund 18.56%
S&P 500 Index 20.09%
Lipper Growth Fund Index 18.70%
PORTFOLIO
COMPOSITION:
As of June 30, 1995, the sector allocations of net assets were:
Financial 12.14%
Electronics 19.16
Technology 20.71
Consumer Products 12.42
Communications 6.07
Cash Equivalents 2.01
Other 27.49
GROWTH OF A $10,000 INVESTMENT SINCE 1992
<TABLE>
<CAPTION>
8/92 6/95
------- -------
<S> <C> <C>
Select Growth Fund $10,000 $13,103
S&P 500 Index-Registered Trademark- $10,000 $14,005
Lipper Growth Fund Index $10,000 $15,400
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select Growth Fund, since its inception on August 21,
1995, to a similar group of investments, the S&P 500 Index and the Lipper Growth
Fund Index. Performance benchmarking allows investors to objectively measure
their fund's performance.
-------------------------------------------------------------------------------
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 LEADING STOCKS. S&P 500 INDEX IS
A REGISTERED TRADEMARK OF THE STANDARD & POOR'S CORPORATION. THE LIPPER GROWTH
FUND INDEX IS A NON-WEIGHTED INDEX OF THE 30 LARGEST GROWTH MUTUAL FUNDS.
PERFORMANCE NUMBERS ARE NET OF ALL FUND OPERATING EXPENSES, BUT DO NOT INCLUDE
INSURANCE CHARGES. IF PERFORMANCE INFORMATION INCLUDED THE EFFECT OF THESE
ADDITIONAL CHARGES, IT WOULD HAVE BEEN LOWER.
10
<PAGE>
FIDELITY'S VIPF GROWTH PORTFOLIO
Fidelity's VIPF Growth Portfolio performed well during the six-month period
ending June 30, 1995 as the Portfolio beat its benchmark, the S&P 500 INDEX.
The strong gains were primarily due to the fact that the economy has slowed and
interest rates declined -- a perfect environment for growth stocks.
Additionally, the Portfolio's investments in the technology sector paid off
handsomely.
As of June 30, 1995, roughly half of the Portfolio's assets were in
technology stocks, which benefited from strong corporate and consumer demand.
From PCs and software to semiconductors and networking, business is booming in
the technology sector.
The Portfolio's management boosted the Portfolio's stake in both Intel, a
manufacturer of microprocessors like the Pentium chip, and Micron Technology, a
manufacturer of PC memory components. This fueled the Portfolio's performance
as both stocks posted sizable gains for the period.
In addition, the Portfolio's management reduced its healthcare stake from
7.7% of net assets on December 31, 1994 to 3.0% as of June 30, 1995. Fidelity
decided to reduce investments in this sector once the Republicans took charge of
Congress in January. This change cast a cloud over healthcare stocks as the new
congressional leadership promised to re-examine programs like Medicare.
In summary, Fidelity believes the Portfolio is well-positioned to benefit
from a long-term positive market, although investors should expect some
volatility due to the Portfolio's aggressive investments in technology
companies.
INVESTMENT ADVISER:
Fidelity Management & Research Company
ABOUT THE FUND:
The Portfolio seeks growth opportunities
in both small- and mid-cap equities.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Fidelity's VIPF Growth Portfolio 23.78%
S&P 500 Index-Registered Trademark- 20.09%
Lipper Growth Fund Index 18.70%
PORTFOLIO
COMPOSITION:
As of May 31, 1995, the sector allocations
of net assets were:
Technology 49.39%
Utilities 9.44
Retail 9.41
Media & Leisure 4.44
Indust Machine & Equip 4.39
Finance 3.57
Other 19.36
GROWTH OF A $10,000 INVESTMENT SINCE 1986
<TABLE>
<CAPTION>
10/86 6/95
------- -------
<S> <C> <C>
Fidelity's VIPF Growth Portfolio $10,000 $32,782
S&P 500 Index-Registered Trademark- $10,000 $29,528
Lipper Growth Index $10,000 $27,205
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in Fidelity's VIPF Growth Portfolio, since its inception on
October 9, 1986, to a similar group of investments; the S&P 500 Index and the
Lipper Growth Fund Index. Performance benchmarking allows investors to
objectively measure their portfolio's performance.
-------------------------------------------------------------------------------
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 LEADING STOCKS. S&P 500 INDEX
IS A REGISTERED TRADEMARK OF THE STANDARD & POOR'S CORPORATION. THE LIPPER
GROWTH FUND INDEX IS A NON-WEIGHTED INDEX OF THE 30 LARGEST FUNDS WITHIN THE
GROWTH INVESTMENT OBJECTIVE. PERFORMANCE NUMBERS ARE NOT OF ALL FUND
OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE
INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE
BEEN LOWER.
11
<PAGE>
SELECT GROWTH AND INCOME FUND
INVESTMENT SUB-ADVISER:
John A. Levin & Co., Inc.
ABOUT THE FUND:
A "value" approach to investing
in high-quality stocks with a strong
potential for growth and above-average
dividend yields.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Select Growth and Income Fund 14.47%
S&P 500 Index 20.09%
Lipper Growth and Income
Fund Index 16.70%
PORTFOLIO
COMPOSITION:
As of June 30, 1995, the sector
allocations of net assets were:
Financial 19.17%
Durable Goods 9.56
Chemicals & Drugs 10.84
Consumer Products 15.00
Automotive 8.09
Cash Equivalents & Other 37.34
<TABLE>
<CAPTION>
GROWTH OF A $10,000 INVESTMENT SINCE 1992
8/92 6/95
------- -------
<S> <C> <C>
Select Growth & Income Fund $10,000 $12,713
S&P 500 Index-Registered Trademark- $10,000 $14,005
Lipper Growth and & Income Fund Index $10,000 $14,432
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select Growth and Income fund, since its inception on
August 21, 1992, to a similar group of investments; the S&P 500 Index and the
Lipper Growth & Income Fund Index. Performance benchmarking allows investors to
objectively measure their fund's performance.
-------------------------------------------------------------------------------
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 LEADING STOCKS. S&P 500 INDEX
IS A REGISTERED TRADEMARK OF THE STANDARD & POOR'S CORPORATION. THE LIPPER
GROWTH & INCOME FUND INDEX IS A NON-WEIGHTED INDEX OF THE 30 LARGEST FUNDS
WITHIN THE GROWTH & INCOME IVESTMENT OBJECTICE. PERFORMANCE NUMBERS ARE NET
OF ALL FUND OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF
PERFORMANCE INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT
WOULD HAVE BEEN LOWER.
Over the last six months, the strength of corporate earnings, prospects for
lower interest rates, effective corporate restructuring, and a spate of mergers
and takeovers fueled a strong advance of the U.S. stock markets. In addition,
the rise in the S&P 500 Index has been magnified by the vigorous performance of
global growth stocks. These stocks represent many of the largest stocks in the
S&P 500 Index, and have significantly benefited from the decline in the dollar.
At the end of the period, the Portfolio achieved significant gains yet
trailed the strong advance of the S&P 500 Index, which was fueled by
extraordinary gains from the technology sector. The Portfolio's relative
underperformance can be attributed to its minimal exposure to the technology
sector. Although the Portfolio maintains some exposure to this sector, it also
contains other investments such as bonds, convertible stocks and specialized
equities which are less affected by gains in the stock market. The Portfolio's
management strategy is to protect capital by investing in companies that have
strong proprietary products or services and have a special situation or new
factor that has not yet been reflected in the stock price.
Levin & Co. has a cautious view of the current market environment, due
to several adverse market conditions. The market moves over the first half
of the year have been one directional. For example, since January there have
only been two days of market decline in excess of 1%. Also, several sectors,
including the technology sector, have already posted extraordinary gains and
are currently trading at high valuations. The international environment,
especially the weakness in the Japanese market, may trigger a negative effect
on the U.S. equity markets.
Going forward, Levin & Co. seeks to reduce investments which are currently
overvalued and reinvest in stocks selling at reasonable valuations with superior
business prospects. In so doing, Levin & Co. seeks to construct a portfolio of
more stable investments such as preferred stock, bonds and specialized equities
that may sacrifice some upward potential to provide investors protection in the
event of a market correction.
12
<PAGE>
FIDELITY'S VIPF EQUITY-INCOME PORTFOLIO
Although Fidelity's VIPF Equity-Income Portfolio did well relative to its peers,
it trailed the S&P 500 Stock Index for the six-month period ending June 30, 1995
by a small margin. Because the recent stock market rally was led by only a few
sectors, namely technology, financial services and large-cap stocks, relatively
few stock funds topped the index. The market's strength was driven by
investors' belief that the Federal Reserve Board would manage the economy to a
"soft landing," albeit slower economic growth and continued low inflation.
These conditions are ideal for corporate profit growth and will provide fuel for
continued increases in stock prices which should benefit the Portfolio.
Several of the Portfolio's largest holdings boosted returns late in the
period. Highlights included Phillip Morris, where strong profit growth and free
cash flow contributed to earnings; and Federal National Mortgage Association
(Fannie Mae) whose stock price was set back last fall, but has since recovered
as conditions in the secondary mortgage market have turned more favorable. IBM
was another strong performer, as the company has succeeded in cutting costs.
During the period, the Portfolio purchased a number of bank stocks along with
other diversified financial services companies such as American Express and
Fannie Mae. The increased emphasis on the financial sector has buoyed the
Portfolio's returns because when interest rates fall, as they have done over the
past few months, the market usually rewards these stocks.
Risks of earnings shortfalls combined with generally high stock valuations
could make navigating the market more difficult in the second half of 1995. In
light of this, Fidelity plans to focus intensely on investing in companies that
offer prospects for higher earnings through 1996 to enhance the Portfolio's
value.
INVESTMENT ADVISER:
Fidelity Management & Research
Company
ABOUT THE FUND:
A growth-oriented portfolio which invests
primarily in income-producing equity
securities.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Fidelity's VIPF Equity-Income
Portfolio 17.15%
S&P 500 Index 20.09%
Lipper Growth and Income
Fund Index 14.56%
PORTFOLIO COMPOSITION:
As of May 31, 1995, the sector allocations
of net assets were:
Utilities 6.27%
Mach & Equip 7.54
Basic Industry 7.94
Nondurable 9.35
Energy 11.11
Finance 15.71
Other 42.08
<TABLE>
<CAPTION>
GROWTH OF A $10,000 INVESTMENT SINCE 1986
10/86 6/95
------- -------
<S> <C> <C>
Fidelity's VIPF Equity-Income Portfolio $10,000 $27,545
S&P 500 Index-Registered Trademark- $10,000 $28,210
Lipper Growth and & Income Fund Index $10,000 $25,922
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Fidelity VIPF Equity-Income Portfolio, since its
inception on October 9, 1986, to a similar group of investments; the S&P 500
Index and the Lipper Growth & Income Fund Index. Performance benchmarking
allows investors to objectively measure their fund's performance.
-------------------------------------------------------------------------------
THE S&P 500 INDEX IS AN UNMANAGED INDEX OF 500 LEADING STOCKS. S&P 500 INDEX
IS A REGISTERED TRADEMARK OF THE STANDARD & POOR'S CORPORATION. THE LIPPER
GROWTH FUND INDEX IS A NON-WEIGHTED INDEX OF THE 30 FUNDS WITHIN THE GROWTH &
INCOME INVESTMENT OBJECTIVES. PERFORMANCE NUMBERS ARE NET OF ALL FUND
OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE
INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE
BEEN LOWER.
13
<PAGE>
BOND MARKET
OVERVIEW
1992: Government and corporate
bonds outperformed the stock market.
1993: U.S. economy gains momentum.
Consumer spending and installment
debt increase.
1994: Federal Reserve Board raises
nterest rates six times in an effort to
slow down the economy and keep
inflation in check.
The series of rate increases imposed by the Federal Reserve Board
throughout 1994 had its desired effect in 1995. Economic growth slowed,
inflation remained at a moderate level, long-term interest rates declined and
bond prices rose significantly. For the six-month period that ended June 30,
1995, the fixed-income markets staged a powerful rally. The Lehman Brothers
Aggregate Bond Index generated a return of 11.4% and the Lehman Brothers
Government and Corporate Bond Index rose 11.8%. These were among the highest
six-month returns posted by the Lehman Brothers indexes in any one calendar
year. Long duration securities, such as the 30-year Treasury bond, produced
"equity-like" returns of 12.2%.
Corporate bonds were the best performing fixed-income securities.
Corporate bonds benefited from strong earnings growth, low interest rates and a
narrowing in the difference in yields relative to Treasury securities. These
positive factors encouraged corporations to issue new bonds. In the second
quarter of 1995, new issuance of corporate debt increased 43% over the first
quarter.
High-yield bonds, as indicated by the Salomon Brothers High-Yield Index,
underperformed the investment-grade corporate sector. Because of concerns about
the possibility of a recession, yields on these bonds rose significantly over
yields on Treasury securities. High-Yield bonds benefited from the relatively
low level of new issuance. During the first half of 1995, new issuance of high-
yield bonds fell to $18.8 billion, a 34% decline from the 1994 level.
3.85%
Bond funds
rally for the Higher interest
first time in rates hurt auto
more that a sales and home
year. Up 3.85% building
| |
--------------------------------------------------------------------------------
1995 JAN 95 FEB 95 MARCH 95
--------------------------------------------------------------------------------
|
Seventh interest
rate hike by the
Federal Reserve
Board
14
<PAGE>
Mortgage-backed securities were the laggards in the fixed-income market
during the six-month period. Declining interest rates tend to have a negative
effect on mortgage-backed securities. This is because homeowners who hold the
mortgages backing these bonds tend to refinance their debt at lower rates. Such
refinancings lower the expected rate of return on mortgage securities as loans
are paid off earlier than expected.
The future outlook bodes well for the fixed income markets as we should
continue to experience moderate economic growth with declining interest rates
and rising bond prices.
Pressure on
Federal Reserve
Board to cut
Bond market interest rates in
rally continues order to keep
as interest rates the economy
decline from stalling
| |
--------------------------------------------------------------------------------
APRIL 95 MAY 95 JUNE 95
--------------------------------------------------------------------------------
| | |
Federal Reserve Corporate Lehman
Board succeeds bonds were Brothers
in slowing best performing Government
economic fixed-income and Corporate
growth securities Bond Index
due to strong rose 11.8%
earnings
growth and low
interest rates
15
<PAGE>
FIDELITY'S VIPF HIGH INCOME PORTFOLIO
INVESTMENT ADVISER:
Fidelity Management & Research
Company
ABOUT THE FUND:
Seeks high income and growth of capital
by investing primarily in high-yielding,
lower-rated, fixed-income securities.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Fidelity's VIPF High
Income Portfolio 12.10%
Merrill Lynch High Yield
Master Index 12.76%
Salomon Brothers
High-Yield Index 12.42%
PORTFOLIO
COMPOSITION:
As of May 31, 1995, the sector allocations
of net assets were:
Leisure & Lodging 14.20%
Transportation 9.00%
Media 7.70%
Energy/Oil/Gas 7.50%
Consumer Durables 7.00%
Insurance 6.60%
Other 48.00%
For the first half of the year, Fidelity's VIPF High Income Portfolio
performed well versus its peer group, yet slightly trailed its benchmark, the
Merrill Lynch High Yield Master Index. The Portfolio's emphasis on B-rated
bonds rather than Ba-rated bonds was the leading factor for the slight
underperformance versus the Index. That is, the Merrill Lynch High Yield
Master Index contains a larger percentage of Ba-rated bonds which typically are
more sensitive to changing interest rates, and therefore, benefited more from
the recent decline in interest rates than B-rated bonds.
On the positive side, the Portfolio's management found ample new investment
opportunities over the period. PanAmSat Corp., a company which operates a
satellite communications system, and Stratosphere Corp., a Las Vegas-based
casino, were two new additions. Both of these companies are promising
investments. In addition to their high 14.25% coupons, they pay additional
interest based on a percentage of cash flow. Other excellent performers over
the period included Revlon and Big Flower Press, a large printer of advertising
inserts, comics and television guides. Revlon continued to benefit from
restructuring and the successful launch of two key new products: Color Stay
Lipstick and Age Defying Makeup. The Portfolio's Revlon investment is
concentrated in junior securities which are most sensitive to changes in credit
quality, which has been a recent plus. Big Flower Press was helped by the
strong growth in advertising and the synergies gained from recent acquisitions.
On the downside, stocks within the restaurant sector did not perform as
well during the period due to competitive pressures and a slowing economy. One
of the Potrfolio's largest holdings, FlagStar, the largest franchisee of
Hardees, suffered due to aggressive price promotions from the major burger
chains.
Over the next six months, Fidelity believes that the economy will be
excellent for the high-yield bonds. Slow economic growth and low inflation
could allow many companies in the high-yield market to improve credit quality.
GROWTH OF A $10,000 INVESTMENT SINCE 1985
<TABLE>
<CAPTION>
9/85 6/95
------- -------
<S> <C> <C>
Salomon Brothers High-Yield Index $10,000 $30,245
Fidelity's VIPF High Income $10,000 $29,272
Merrill Lynch High Yield Master Index $10,000 $28,609
</TABLE>
-------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in Fidelity's VIPF High Income Portfolio, since its
inception on September 19, 1985, to a similar group of investments; the
Merrill Lynch High Yield Master Index and the Salomon Brothers High Yield
Index. Performance benchmarking allows investors to objectively measure
their portfolio's performance.
-------------------------------------------------------------------------------
THE MERRILL LYNCH HIGH YIELD MASTER INDEX IS AN UNMANAGED INDEX OF HIGH YIELD
BONDS. SALOMON BROTHERS HIGH-YIELD INDEX TRACKS THE PERFORMANCE OF HIGH YIELD
SECURITIES TRADED IN THE U.S. BOND MARKET. PERFORMANCE NUMBERS ARE NET OF
ALL FUND OPERATING EXPENSES, BUT DO NOT INCLUDE INSURANCE CHARGES. IF
PERFORMANCE INFORMATION INCLUDED THE EFFECT OF THESE ADDITIONAL CHARGES, IT
WOULD HAVE BEEN LOWER.
16
<PAGE>
SELECT INCOME FUND
For the first six months of 1995, the investment environment for fixed-
income markets and the Select Income Fund was excellent. Early in the period,
several economic reports indicated a slowdown in economic growth prompting the
Federal Reserve Board to curtail its anti-inflationary policy of raising short-
term interest rates throughout 1994. The Fed's final interest rate increase
occurred in February 1995. Because economic growth was slower than anticipated
during the period, interest rates declined and bond prices rose. This resulted
in double digit returns for fixed-income investments through May 1995. More
positive economic reports in June 1995 led to a rise in interest rates and a
decline in bond prices.
During the six month period, the Select Income Fund performed in line with the
market, providing an attractive return. Standish, Ayer & Wood's investment
strategy focused on keeping the duration, which is the interest rate sensitivity
of the Portfolio, roughly equivalent to that of the market. This added
stability to the portfolio when interest rates fluctuated. In addition, a
combination of adjustable-rate mortgage securities and intermediate corporate
bonds were emphasized. This mix of securities proved to be a winning strategy
since some of the weaknesses in mortgage securities were offset by strong
corporate bond returns. As a result of underperformance in foreign fixed-income
markets, the Portfolio's management avoided adding U.S. dollar-denominated
foreign securities to the Portfolio.
The Portfolio's management believes that the initial strength of the fixed-
income markets is now giving way to some weakness and that these markets are in
a period of transition. The economy should become stronger during the remainder
of 1995, which could result in an upswing in interest rates and lower bond
prices. Going forward, the Portfolio will attempt to protect the gains made
this year. To this end, management has adopted a more defensive posture. They
have shortened the Portfolio's duration and average maturity, added fixed-rate
mortgages and increased the Portfolio's position in U.S. Treasury securities.
INVESTMENT SUB-ADVISER:
Standish, Ayer & Wood
ABOUT THE FUND:
The Portfolio seeks above average income
from corporate bonds, mortgages and
bonds issued by the U.S. government.
PERFORMANCE:
Net Total Return for the six-month period
ending June 30, 1995:
Select Income Fund 10.41%
Lehman Brothers
Aggregate Bond Index 11.44%
Salomon Brothers Broad
Market Index 11.52%
PORTFOLIO COMPOSITION*:
As of June 30, 1995, the sector
allocations were
U.S. Government & Agency Obligations 57.87%
Corporate Notes and Bonds 34.95%
Mortgage Securities 4.00%
Commercial Paper 6.15%
Cash Equivalents and Other 8.84%
---------------
* Other liabilities - 11.81%
GROWTH OF A $10,000 INVESTMENT SINCE 1992
<TABLE>
<CAPTION>
8/92 6/95
------- -------
<S> <C> <C>
Select Income Fund $10,000 $12,017
Lehman Brothers Aggregate Bond Index $10,000 $11,882
Salomon Brothers Broad Market Index $10,000 $12,018
</TABLE>
--------------------------------------------------------------------------------
A GUIDE TO REVIEWING PERFORMANCE The chart above compares the value of a
$10,000 investment in the Select Income Fund, since its inception on August 2,
1992, to a similar group of investments; the Lehman Brothers Aggregate Bond
Index and the Salomon Brothers Broad Market (BIG) Index. Performance
benchmarking allows investors to objectively measure their fund's performance.
-------------------------------------------------------------------------------
THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS AN UNMANAGED INDEX OF AVERAGE
YIELD U.S. INVESTMENT GRADE BONDS. SALOMON BROTHERS BROAD MARKET (BIG) INDEX
TRACKS THE PERFORMANCE OF INVESTMENT GRADE SECURITIES TRADED IN THE U.S. BOND
MARKET. PERFORMANCE NUMBERS ARE NET OF ALL FUND OPERATING EXPENSES, BUT DO
NOT INCLUDE INSURANCE CHARGES. IF PERFORMANCE INFORMATION INCLUDED THE
EFFECT OF THESE ADDITIONAL CHARGES, IT WOULD HAVE BEEN LOWER.
17
<PAGE>
MONEY MARKET OVERVIEW
1981: Money market returns peak at 14.71%.
1992-1993: Federal Reserve eases
interest rates to boost faltering economy.
1994: Federal Reserve raises interest
rates six times in an effort to slow the
economy and keep inflation in check.
Economic growth slowed dramatically during the six-month period ending June
30, 1995. Strong year-end gross domestic product and final sales figures along
with increasing employment prompted the Federal Reserve to tighten credit in
February, 1994. However, just as the Fed acted, there were signs that the
economy was slowing down. A decline in consumer spending and weakness in the
housing and auto sectors indicated that the economy was cooling off.
As the economy slowed down, interest rates fell. This decline in general
interest rates combined with a stable Federal Funds rate resulted in an inverted
yield curve. This situation occurs when rates available on short term
securities are higher relative to intermediate term securities. As a result,
investors channeled substantial assets into money market investments which
reached a record level of $579.8 billion.
Looking forward, there is no clear consensus on what lies ahead. If the
economy falls off dramatically, the Federal Reserve may change course and lower
interest rates to avoid an extended downturn.
Pressure on
Federal Reserve
Board to cut
Seventh interest Federal Reserve interest rates in
rate hike by the Board succeeds order to keep
Federal Reserve in slowing the economy
Board economic growth from stalling
| | |
--------------------------------------------------------------------------------
JAN 95 FEB 95 MAR 95 APRIL 95 MAY 95 JUNE 95
--------------------------------------------------------------------------------
|
Dollar drops to
post WWII lows
fueling Japan's
economic woes
18
<PAGE>
MONEY MARKET FUND
For the first six months of 1995 the Money Market Fund provided competitive
returns to investors. In the first quarter, investors faced a volatile economic
environment of continued strong economic growth with lurking inflationary
worries. The upward trend in interest rates peaked when the Federal Reserve
Board responded for the seventh time in a year by raising the Federal Funds rate
to 6% from 5.5%. Then, in the second quarter, market expectations shifted as a
series of weak economic indicators showed signs that the pace of economic growth
had slowed. This stimulated a decline in interest rates. And, the decline in
rates, combined with a stable Federal Funds rate resulted in an inverted yield
curve with interest rates on short-term securities higher relative to
intermediate-term securities. As a result, money market funds continued to
attract substantial assets, reaching a record level of $579.8 billion.
The Portfolio continued to focus on its three primary goals:
preservation of capital, maintenance of liquidity, and protection of maximum
current income for investors. The Portfolio's management emphasized high
quality commercial paper and sought opportunities in other credit-worthy short-
term financial products.
Going forward, Allmerica Asset Management believes that a significant
slowdown in economic growth without inflationary pressure will prompt the Fed to
further lower rates. This, in turn, will cause short-term rates to fall.
Portfolio management increased the average maturity of the portfolio in the
second quarter, purchasing short-term corporate notes and bank certificates of
deposit. This longer maturity structure has left the Portfolio well-positioned
to benefit from a lower interest rate environment.
INVESTMENT SUB-ADVISER:
Allmerica Asset Management, Inc.
ABOUT THE FUND:
Strives to maximize current income
for investors with preservation of capital
and liquidity.
PERFORMANCE:
Net total return for the six-month period
ending June 30, 1995:
Money Market Fund 2.88%
IBC/Donoghue General Purpose
Money Market Average 2.80%
Lipper Money Market Index 2.33%
PORTFOLIO COMPOSITION:
As of June 30, 1995, the sector
allocations of net assets were:
Commercial Paper 57.05%
Corporate Notes and Bonds 28.78%
Cash Equivalents 6.10%
Other 8.07%
19
<PAGE>
SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
COMMON STOCKS - 97.36%
<S> <C> <C>
AUSTRALIA - 9.84%
121,800 Broken Hill Proprietary Co., Ltd $ 1,495,332
131,060 Mayne Nickless, Ltd 537,887
507,690 MIM Holdings, Ltd 626,168
157,800 National Australia Bank, Ltd 1,243,811
334,270 News Corp., Ltd 1,862,355
116,550 Western Mining Corp. 638,608
-----------
6,404,161
-----------
FINLAND - 1.64%
50,600 Repola Oy S 1,064,637
-----------
FRANCE - 1.89%
16,630 Societe Nationale Elf Acquitaine, S.A. 1,229,880
-----------
INDONESIA - 5.13%
21,000 Gadjah Tunggal-F 30,175
70,000 Gudang Garam 537,494
88,000 Hero Supermarkets 159,048
148,500 Iianjaya Mandala Sampoerna-F 1,166,928
117,000 Kalbe Farma 535,878
72,500 Mayora Indah-F 332,061
147,000 PT Indcmt Tug 577,571
-----------
3,339,155
-----------
IRELAND - 2.79%
106,400 Allied Irish Banks, Plc 501,598
436,650 Smurfit(Jefferson) Group 1,315,142
-----------
1,816,740
-----------
ITALY - 1.90%
448,010 Stet * 1,238,390
-----------
JAPAN - 3.36%
55,000 Canon, Inc. 893,993
27,000 Sony Corp. 1,294,346
-----------
2,188,339
-----------
MALAYSIA - 5.06%
191,000 DCB Holdings, Berhad 560,154
203,000 Hume Industries Berhad 1,107,428
108,000 Malaysian International Shipping Corp. 316,736
468,200 Sime-Darby Berhad 1,305,895
-----------
3,290,213
-----------
MEXICO - 0.15%
2,985 Grupo Financiero Banamex 4,536
59,700 Grupo Financiero Banamex 91,685
-----------
96,221
-----------
NETHERLANDS - 13.36%
10,640 Akzo Nobel, NV $ 1,270,894
24,975 ABN-Amro Holdings, NV 963,237
96,800 Elsevier, NV 1,142,492
20,005 International Nederlanden Group 1,105,722
20,190 KLM Royal Dutch Airlines 654,984
72,650 Philips Electronics, NV 3,073,732
13,455 Royal PTT Nederland, NV, ADR 483,354
-----------
8,694,415
-----------
SINGAPORE - 6.99%
148,000 City Developments 905,467
117,000 Development Bank of Singapore, Ltd 1,331,152
93,000 Fraser and Neave, Ltd, Ord 1,071,405
82,800 Singapore Press Holdings 1,238,287
-----------
4,546,311
-----------
SPAIN - 1.69%
12,125 Argentaria Corp., Banceria De Espana 448,091
16,495 Banco Santander, S.A. 650,455
-----------
1,098,546
-----------
SWEDEN - 2.86%
8,150 Assisdoman 175,164
14,600 Astra AB, Series B 439,107
28,840 Ericsson Series B 574,297
35,150 Volvo (AB) B 668,572
-----------
1,857,140
-----------
SWITZERLAND - 8.66%
1,507 Alusuisse-Lonza Holdings Regd 944,397
2,453 Ciba-Geigy Namen 1,796,984
256 Roche Holding Ag Basel 1,648,724
1,047 Schweiz Ruckverischer 806,073
2,485 Swiss Bank Corp., Regd * 440,008
-----------
5,636,186
-----------
THAILAND - 2.55%
60,300 Bangkok Bank Plc 664,435
6,900 Siam Cement, Ltd, Regd-F 440,526
58,000 Thai Farmers Bank Co., Regd-F 554,507
-----------
1,659,468
-----------
UNITED KINGDOM - 29.43%
233,150 B.A.T. Industries, Ord 1,784,117
56,350 Barclays Bank, Ord 605,567
87,700 BICC, Ord 414,380
116,450 British Airways, Plc 763,272
219,900 British Gas, Plc 1,012,784
330,290 BTR, Plc 1,678,840
</TABLE>
See Notes to Financial Statements.
20 -----------------------------------------------
<PAGE>
SELECT INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
168,090 Cadbury Schweppes $ 1,227,432
114,350 Chubb Security, Plc 571,227
280,430 Coats Viyella, Plc 829,813
46,200 General Accident, Plc 423,358
237,700 General Electric Co., Plc 1,160,942
98,400 Glaxo Wellcome, Plc 1,207,741
74,360 Grand Metropolitan, Plc 456,044
284,700 Hanson, Plc 996,444
77,800 Powergen, Plc * 237,023
272,750 Prudential Corp., Plc * 1,453,625
217,400 Scottish Power, Plc 1,120,594
158,700 Siebe, Plc 1,580,499
46,040 Smith New Court, Plc 323,011
62,800 Thorn EMI, Plc 1,303,806
-----------
19,150,519
-----------
UNITED STATES - 0.06%
2,847 US Industries, Inc. 38,790
-----------
TOTAL COMMON STOCKS 63,349,111
(Cost $59,419,447) -----------
PREFERRED STOCKS - 0.53%
69,985 News Corp. $ 345,764
-----------
TOTAL PREFERRED STOCKS 345,764
(Cost $278,776) -----------
INVESTMENT COMPANIES - 6.56%
1,653,451 Chase Vista U.S. Government
MONEY MARKET FUND 1,653,451
2,613,736 ILA Prime Obligation Portfolio Fund 2,613,736
-----------
TOTAL INVESTMENT COMPANIES 4,267,187
(Cost $4,267,187) -----------
TOTAL INVESTMENTS - 104.45% 67,962,062
(Cost $63,965,410) -----------
NET OTHER ASSETS AND LIABILITIES - (4.45)% (2,894,388)
-----------
NET ASSETS - 100.00% $65,067,674
-----------
-----------
<FN>
-------------------------------------------
* Non income producing security.
ADR American Depository Receipt
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS SOLD
<TABLE>
<CAPTION>
Contracts to Settlement Contracts at In Exchange Appreciation
Par Value Deliver Dates Value For U.S. $ (Depreciation)
--------- ------------ ---------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
4,980,000 CHF 08/16/95 $ 4,343,283 $ 4,133,020 $ (210,263)
5,566,200 FRF 07/10/95 1,147,250 1,135,571 (11,679)
9,900,000 NLG 08/18/95 6,406,605 6,198,880 (207,725)
------------ ------------ ----------
$ 11,897,138 $ 11,467,471 $ (429,667)
------------ ------------ ----------
------------ ------------ ----------
</TABLE>
See Notes to Financial Statements.
---------------------------------------------------------- 21
<PAGE>
SELECT AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 98.80%
TECHNOLOGY - 22.50%
21,800 3COM Corp. * $ 1,460,600
55,200 Adaptec, Inc. * 2,042,400
99,200 Altera Corp. * 4,290,400
72,200 Atmel Corp. * 3,998,075
104,700 Boca Research, Inc. * 2,826,900
58,700 Breed Technologies, Inc. 1,408,800
41,000 Cabletron Systems, Inc. * 2,183,250
38,200 Cisco Systems, Inc. * 1,931,488
51,400 Computer Associates International, Inc. 3,482,350
63,500 Madge Nv * 1,778,000
108,700 Microdyne Corp. * 2,106,063
107,500 Micron Technology, Inc. 5,899,063
5,900 Pairgain Technologies, Inc. * 112,838
51,100 Proxima Corp. * 1,220,013
54,200 S3, Inc. * 1,951,200
115,000 Santa Cruz Operation, Inc. * 963,125
47,900 Softkey International, Inc. * 1,526,813
36,500 Sun Microsystems, Inc. * 1,770,250
95,400 Veritas Software Co. * 2,122,650
-----------
43,074,278
-----------
CONSUMER PRODUCTS - 12.09%
63,300 Archer Daniels Midland Co. 1,178,963
66,200 Ascend Communications, Inc. * 3,343,100
68,000 Boise Cascade Corp. 2,754,000
44,000 Bowater, Inc. 1,974,500
41,200 Devon Group, Inc. * 1,215,400
55,500 First Team Sports, Inc. * 1,276,500
120,900 Gaylord Container Corp., Class A * 1,450,800
69,800 Jefferson Smurfit Corp. * 916,125
42,700 King World Productions, Inc. * 1,729,350
23,300 Rock-Tenn Co., Class A 413,575
57,400 Scott Paper Co. 2,841,300
64,400 Stone Container Corp. * 1,368,500
23,300 Union Camp Corp. 1,348,488
30,300 Westvaco Corp. 1,340,775
-----------
23,151,376
-----------
FINANCIAL - 11.90%
46,300 American Bankers Insurance Group, Inc. 1,470,025
28,000 American National Insurance Co. 1,708,000
50,100 Bank of Boston Corp. 1,878,750
81,000 Bear Stearns Cos., Inc. 1,731,375
61,400 Coventry Corp. * 867,275
47,500 First Mississippi Corp. 1,620,938
66,400 Green Tree Financial Corp. 2,946,500
87,100 Lehman Brother Holdings, Inc. 1,905,313
53,000 Medaphis Corp. * 1,152,750
99,300 North Fork Bancorporation, Inc. 1,799,814
153,600 Olympic Financial, Ltd * 2,563,200
1 Pacific Crest Capital, Inc. * 6
102,700 Penncorp Financial Group, Inc. 1,899,950
25,000 St. Paul Cos., Inc. 1,231,250
-----------
22,775,146
-----------
HEALTH SERVICES - 9.74%
18,000 Amgen, Inc. 1,447,875
50,900 Bergen Brunswig Corp., Class A 1,164,338
62,800 Boston Scientific Corp. * 2,001,750
156,600 CNS, Inc. 2,623,050
73,400 Dynatech Corp. * 1,376,250
113,800 Empi, Inc. * 1,707,000
66,900 Lincare Holdings, Inc. 1,777,031
26,500 Medic Computer Systems, Inc. 1,020,250
29,600 Pacificare Health Systems, Inc., Class A * 1,502,200
59,400 Phoenix Resources Cos., Inc. 1,885,950
92,700 Research Industries Corp. 2,132,100
-----------
18,637,794
-----------
ELECTRONICS - 9.25%
25,500 Alliance Semiconductor Corp. * 1,249,500
54,700 Cellstar Corp. * 1,278,613
40,900 Electroglas, Inc. * 2,341,525
89,300 Electronics for Imaging, Inc. * 4,665,925
43,700 Kulicke & Soffa Industries, Inc. * 2,897,856
32,500 PressTek, Inc. * 1,657,500
41,200 Tencor Instruments 1,689,200
20,600 Xilinx, Inc. * 1,936,400
-----------
17,716,519
-----------
ENERGY - 7.00%
56,300 Asarco, Inc. 1,717,150
119,000 Benton Oil & Gas Co. * 1,651,125
58,700 Lyondell Petrochemical Co. 1,504,188
71,200 Occidental Petroleum Corp. 1,628,700
130,000 Oryx Energy Co. * 1,787,500
207,000 Pride Petroleum Services, Inc. * 1,552,500
63,800 Sonat Offshore Drilling, Inc. 1,834,250
86,800 USX-Marathon Group 1,714,300
-----------
13,389,713
-----------
CONSUMER STAPLES - 6.96%
74,500 Acme-Cleveland Corp. 1,760,063
42,200 Danaher Corp. 1,276,550
31,000 IBP, Inc. 1,348,489
79,000 Input/Output, Inc. * 2,844,000
93,200 Lydall, Inc. * 2,050,400
20,200 Philip Morris Cos., Inc. 1,502,375
37,900 Planar Systems, Inc. * 843,275
17,600 Springs Industries, Inc., Class A 655,600
89,500 Sterling Chemicals, Inc. * 1,040,438
-----------
13,321,190
-----------
</TABLE>
See Notes to Financial Statements.
22 -----------------------------------------------
<PAGE>
SELECT AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
CHEMICALS AND DRUGS - 6.42%
32,600 Eastman Chemical, Inc. $ 1,939,700
62,600 Grand Casinos, Inc. * 2,214,475
162,400 Liposome, Inc. * 1,766,100
20,300 Novellus Systems, Inc. * 1,375,325
46,400 Sanmina Corp. * 1,763,200
52,600 Union Carbide Corp. 1,755,525
53,900 Wellman, Inc. 1,475,513
-----------
12,289,838
-----------
METALS AND MINING - 5.35%
43,200 Aluminum Company of America 2,165,400
60,700 J&L Specialty Steel, Inc. * 1,168,475
19,200 Phelps Dodge Corp. 1,132,800
57,500 Potash Corp. of Saskatchewan 3,212,813
21,700 Reynolds Metals Co. 1,122,975
31,100 Timken Co. 1,434,488
-----------
10,236,951
-----------
AEROSPACE-AIRLINES - 2.45%
40,600 Crane Co. 1,471,750
42,000 McDonnell Douglas Corp. 3,223,500
-----------
4,695,250
-----------
BUSINESS SERVICES - 1.48%
61,600 Manpower, Inc. 1,570,800
49,300 Robert Half International, Inc. * 1,263,313
-----------
2,834,113
-----------
FOOD SERVICES - 1.35%
69,100 Safeway, Inc. * 2,582,613
-----------
TRANSPORTATION - 1.29%
68,300 Consolidated Freightways, Inc. 1,511,138
53,400 Yellow Corp. 967,875
-----------
2,479,013
-----------
BUILDING AND CONSTRUCTION - 1.02%
33,900 NCI Building Systems, Inc. 567,825
26,800 Olin Corp. 1,380,200
-----------
1,948,025
-----------
TOTAL COMMON STOCKS 189,131,819
-----------
(Cost $146,607,146)
PAR VALUE
---------
COMMERCIAL PAPER (A) - 1.05%
$2,000,000 Commerzbank U.S. Finance, Inc.
6.10%, 07/03/95 $ 1,999,322
-----------
Total Commercial Paper 1,999,322
-----------
(Cost $1,999,322)
SHARES
------
INVESTMENT COMPANIES - 0.79%
1,245,872 ILA Prime Obligation Money Market Fund 1,245,872
272,421 ILA Prime Obligation Portfolio Fund 272,421
-----------
TOTAL INVESTMENT COMPANIES 1,518,293
-----------
(Cost $1,518,293)
TOTAL INVESTMENTS - 100.64% 192,649,434
-----------
(Cost $150,124,761)
NET OTHER ASSETS AND LIABILITIES - (0.64)% (1,218,174)
-----------
NET ASSETS - 100.00% $ 191,431,260
-----------
-----------
<FN>
-----------------------------
* Non income producing security.
(A) Annualized yields at time of purchase.
</TABLE>
See Notes to Financial Statements.
---------------------------------------------------------
23
<PAGE>
SELECT CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 79.94%
CHEMICALS AND DRUGS - 15.24%
2,250 Amerisource Health Corp., Class A $ 51,328
9,825 American Oncology Resources, Inc. 272,644
2,025 Brady (WH) Co., Class A 137,700
3,350 Cardinal Health, Inc. 158,288
5,450 I-Stat Corp. 198,925
2,425 Intertape Polymer Group, Inc. * 56,988
525 Resmed, Inc. 6,300
15,975 Scherer (R.P.) Corp. * 674,944
1,375 Target Therapeutics, Inc. * 60,500
-----------
1,617,617
-----------
COMMUNICATIONS - 11.15%
2,500 Airtouch Communications, Inc. * 71,250
11,300 Arch Communications Group, Inc. * 251,425
6,150 CommNet Cellular, Inc. * 172,200
5,275 NEXTEL Communications, Inc. * 74,509
7,500 Nokia Corp., ADR 447,188
4,500 Paradigm Technology, Inc. 100,969
1,750 Vodafone Group, Plc, ADR 66,281
-----------
1,183,822
-----------
DURABLE GOODS - 9.44%
11,250 APS Holding Corp., Class A * 296,719
825 Crown Cork & Seal, Inc. * 41,353
8,150 Exide Corp. 350,450
700 General Motors Corp., Class E 30,450
2,025 Nike, Inc., Class B 170,100
3,825 Reynolds & Reynolds Co., Class A 112,838
-----------
1,001,910
-----------
CONSUMER STAPLES - 7.22%
3,900 American Standard Cos. * 106,763
11,300 Petco Animal Supply, Inc. * 262,725
3,225 Sealed air Corp. * 141,900
5,700 U.S. Can Corp. * 89,063
4,550 Viking Office Products, Inc. * 166,644
-----------
767,095
-----------
TECHNOLOGY - 7.01%
1,425 Dendrite International, Inc. 20,663
2,325 Discreet Logic, Inc. 48,825
6,450 First Data Corp. 366,844
4,000 Maxis, Inc. 106,500
950 Microcom, Inc. 14,250
2,350 Nexgen, Inc. 55,519
1,750 Seer Technologies, Inc. 31,500
3,175 Storemedia, Inc., Class A 100,013
-----------
744,114
-----------
FINANCIAL - 6.11%
475 American International Group, Inc. $ 54,150
4,425 APPS Dental, Inc. 92,925
1,300 Franklin Resources, Inc. 57,850
5,550 Insignia Financial Group, Inc., Class A * 148,463
850 North American Mortgage Co. 19,656
5,625 Progressive Corp. 215,859
2,200 Protective Life Corp. 59,950
-----------
648,853
-----------
HEALTH SERVICES - 4.91%
8,150 Horizon Healthcare Corp. * 145,681
6,000 Omnicare, Inc. 162,750
12,500 Quidel Corp. 62,500
10,800 TheraTech, Inc. * 149,850
-----------
520,781
-----------
METALS AND MINING - 4.50%
13,275 Minerals Technologies, Inc. 477,900
-----------
BUSINESS SERVICES - 4.26%
13,200 Paging Network, Inc. * 452,100
-----------
FOOD SERVICES - 3.47%
8,950 JP Foodservice, Inc. * 125,300
4,000 Lone Star Steakhouse & Saloon * 121,250
4,225 Outback Steakhouse, Inc. * 121,997
-----------
368,547
-----------
CONSUMER SERVICES - 2.10%
2,575 Hospitality Franchise Systems, Inc. 89,159
3,750 Loewen Group, Inc. 133,594
-----------
222,753
-----------
CONSUMER PRODUCTS 1.50%
1,350 Bowater, Inc., Plc, ADR 60,581
200 Department 56, Inc. * 7,650
5,725 Katz Media Group, Inc. 90,884
-----------
159,115
-----------
MISCELLANEOUS - 1.25%
7,725 Act Networks, Inc. 133,256
-----------
RETAIL - 1.15%
4,850 AutoZone, Inc. * 121,856
-----------
ELECTRONICS - 0.63%
3,625 Opal, Inc. 67,063
-----------
TOTAL COMMON STOCKS 8,486,782
-----------
(Cost $7,524,879)
</TABLE>
See Notes to Financial Statements.
24 ---------------------------------------------------------
<PAGE>
SELECT CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS - 3.60%
2,296 Huhtamaki I (Finland) $75,146
2,960 Kinnevik Ab-B Free Shares (Switzerland) 90,244
4,078 Thorn Emi, Plc (United Kingdom) 84,664
15,493 Wetherspoon (J.D.) Plc (United Kingdom) 132,602
-----------
TOTAL FOREIGN COMMON STOCKS 382,656
-----------
(Cost $391,676)
PAR VALUE
---------
U.S. GOVERNMENT BACK BONDS - 11.25%
$1,200,000 Federal Home Loan Bank (A)
5.84%, 07/31/95 1,194,160
-----------
Total U.S. Government Back Bonds 1,194,160
-----------
(Cost $1,194,160)
VALUE
COMMERCIAL PAPER (A) - 9.41%
$500,000 Ford Motor Credit Corp.
6.05%, 07/03/95 $ 499,832
500,000 General Electric Capital Corp.
6.10%, 07/03/95 499,831
-----------
Total Commercial Paper 999,663
-----------
(Cost $999,663)
TOTAL INVESTMENTS - 104.20% 11,063,261
-----------
(Cost $10,110,378)
NET OTHER ASSETS AND LIABILITIES - (4.20)% (446,244)
-----------
NET ASSETS - 100.00%
$10,617,017
-----------
-----------
--------------------------------
<FN>
* Non income producing security.
(A) Annualized yields at time of purchase.
ADR American Depository Receipt
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS SOLD
<TABLE>
CONTRACTS TO SETTLEMENT CONTRACTS AT IN EXCHANGE APPRECIATION
PAR VALUE DELIVER DATES VALUE FOR U.S.$ (DEPRECIATION)
--------- ------------ ---------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
1,029,000 FIM 08/15/95 $ 240,870 $ 231,587 $ (9,283)
88,000 GBP 08/15/95 139,828 137,262 (2,566)
632,000 SEK 08/15/95 86,426 84,845 (1,581)
------------- ---------- ----------
$ 467,124 $ 453,694 $ (13,430)
------------- ---------- ----------
------------- ---------- ----------
</TABLE>
See Notes to Financial Statements.
25 ----------------------------------
<PAGE>
SELECT GROWTH FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 97.13%
TECHNOLOGY - 20.71%
18,800 Automatic Data Processing, Inc. $1,182,050
27,750 Cabletron Systems, Inc. * 1,477,688
34,100 CISCO Systems, Inc. * 1,724,181
39,700 Computer Associates International, Inc 2,689,675
18,600 Computer Sciences Corp. * 1,057,875
46,600 First Data Corp. 2,650,375
79,000 Informix Corp. * 2,004,625
94,800 Nokia Corp., ADR * 5,652,450
139,700 Oracle Corp. * 5,395,913
21,000 3COM Corp. 1,407,000
-----------
25,241,832
-----------
ELECTRONICS - 19.16%
63,000 Analog Devices, Inc. * 2,142,000
29,700 Hewlett Packard Co. 2,212,650
91,200 Intel Corp. 5,774,100
61,000 Microsoft Corp. * 5,512,875
20,625 Molex, Inc., Class A 752,813
81,500 Motorola, Inc. 5,470,688
41,900 Sensormatic Electronics Corp. 1,487,450
-----------
23,352,576
-----------
CONSUMER PRODUCTS - 12.42%
13,100 Alco Standard Corp. 1,046,363
33,850 Andrew Corp. * 1,959,069
24,400 Applied Materials, Inc. * 2,113,650
25,000 ASM Lithography 896,875
64,900 British Sky Broadcasting Group, ADR 1,695,513
41,600 Capital Cities/ABC, Inc. 4,362,800
24,200 Gillette Co. 1,079,925
70,500 Office Depot, Inc. * 1,982,813
-----------
15,137,008
-----------
FINANCIAL - 12.14%
11,800 American International Group, Inc. 1,345,200
16,600 Federal Home Loan Mortgage Corp. 1,141,250
24,400 Federal National Mortgage Association 2,302,750
35,200 FINOVA Group, Inc. 1,232,000
23,600 First Financial Management Corp. 2,017,800
34,900 First USA, Inc. 1,548,688
86,750 MBNA Corp. 2,927,813
35,700 MGIC Investment Corp. 1,673,438
13,800 PMI Group, Inc. * 598,575
-----------
14,787,514
-----------
VALUE
SHARES (NOTE 2)
--------------------------------------------------------------------
COMMUNICATIONS - 6.07%
20,000 ALC Communications Corp. * $ 902,500
244,000 Ericsson LM Telephone Co., Class B, ADR * 4,880,000
42,100 General Instrument Corp. * 1,615,588
-----------
7,398,088
-----------
CONSUMER SERVICES - 5.58%
44,700 Circus Circus Enterprises, Inc. * 1,575,675
27,800 Hospitality Franchise Systems, Inc. 962,575
53,400 Loewen Group, Inc. 1,902,375
17,700 Paychex Inc. 641,625
32,000 Tyco International, Ltd. 1,728,000
-----------
6,810,250
-----------
HEALTH SERVICES - 5.36%
27,900 Cardinal Health, Inc. 1,318,275
5,800 Humana, Inc. * 102,225
32,000 Medtronic, Inc. 2,468,000
43,700 Quorom Health Group, Inc. * 884,925
12,400 St. Jude Medical, Inc. 621,550
27,300 United Healthcare Corp. 1,129,538
-----------
6,524,513
-----------
ELECTRICAL, GAS AND SANITARY - 4.79%
34,000 Browning-Ferris Industries, Inc. 1,228,250
130,900 Enron Corp. 4,597,863
-----------
5,826,113
-----------
RETAIL - 3.21%
60,100 AutoZone, Inc. * 1,510,013
89,700 Wal-Mart Stores, Inc. 2,399,475
-----------
3,909,488
-----------
CHEMICALS AND DRUGS - 2.64%
21,200 Air Products & Chemicals, Inc. 1,181,900
12,000 Pfizer, Inc. 1,108,500
21,800 Scherer (R.P.) Corp. * 921,050
-----------
3,211,450
-----------
BUILDING AND CONSTRUCTION - 2.58%
53,533 Home Depot, Inc. 2,174,778
32,400 Lowe's Cos., Inc. 967,943
-----------
3,142,721
-----------
AEROSPACE-AIRLINES - 1.46%
28,400 Boeing Co. 1,778,550
-----------
</TABLE>
See Notes to Financial Statements
26 ---------------------------------------
<PAGE>
SELECT GROWTH FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C>
FOOD SERVICES - 1.01%
31,600 McDonald's Corp. $ 1,236,350
-----------
TOTAL COMMON STOCKS 118,356,453
-----------
(Cost $94,160,883)
PAR VALUE
---------
COMMERCIAL PAPER (A) - 2.46%
$3,000,000 Ford Motor Credit Corp.
5.97%, 07/19/95 3,000,000
-----------
TOTAL COMMERCIAL PAPER 3,000,000
-----------
(Cost $3,000,000)
SHARES
------
INVESTMENT COMPANIES - 2.01%
2,445,697 ILA Prime Obligation Portfolio Fund 2,445,697
-----------
TOTAL INVESTMENT COMPANIES 2,445,697
-----------
(Cost $2,445,697)
TOTAL INVESTMENTS - 101.60% 123,802,150
-----------
(Cost $99,606,580)
NET OTHER ASSETS AND LIABILITIES - (1.60)% (1,948,863)
-----------
NET ASSETS - 100.00% $121,853,287
-----------
-----------
<FN>
---------------------------
* Non income producing security.
(A) Annualized yield at time of purchase.
ADR American Depository Receipt
</TABLE>
See Notes to Financial Statements.
-----------------------------------------------------------27
<PAGE>
SELECT GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 92.19%
FINANCIAL - 19.17%
48,000 American Express Co. $1,686,000
74,800 Bank of New York, Inc. 3,020,050
40,000 Chase Manhattan Corp. 1,880,000
91,400 Citicorp 5,289,775
22,700 ITT Corp. 2,667,250
22,300 Kemper Corp. 1,039,738
14,200 Marsh & Mclennan Co. 1,151,975
90,000 Northern Trust Corp. 3,622,500
47,700 RJR Nabisco Holdings Corp. 1,329,638
82,000 TIG Holdings, Inc. 1,886,000
14,000 Unitrin, Inc. 665,000
47,000 Unum Corp. 2,203,125
57,200 U.S. West, Inc. 2,380,950
----------
28,822,001
----------
CONSUMER PRODUCTS - 15.00%
41,000 Eastman Kodak Co. 2,485,625
28,100 LIN Broadcasting Corp. 3,554,650
45,800 Nabisco Holdings Corp., Class A * 1,236,600
43,000 New York Times Co., Class A 1,010,500
22,600 NYNEX Cablecomms Group, ADR 457,650
31,100 Philip Morris Cos., Inc. 2,313,063
71,400 Seagram Co., Ltd. 2,472,225
30,000 Tele-Communications, Inc., Class A * 703,125
45,000 Time Warner, Inc. 1,850,625
137,267 Times Mirror Co., Series A 3,277,250
61,000 Viacom, Inc., Class B * 2,828,875
248,700 Viacom, Inc., Rights 357,506
----------
22,547,694
----------
CHEMICALS AND DRUGS - 10.84%
45,000 ALZA Corp. * 1,051,875
17,900 American Home Products Corp. 1,385,013
38,800 Avon Products, Inc. 2,599,600
53,500 Baxter International, Inc. 1,946,063
161,000 Caremark International, Inc. 3,220,000
5,200 Dow Chemical Co. 373,750
41,000 Foundation Health Corp. * 1,107,000
4,900 Johnson & Johnson, Inc. 331,363
33,800 Monsanto Co. 3,046,225
14,300 Warner-Lambert Co. 1,235,163
----------
16,296,052
-----------
DURABLE GOODS - 9.56%
19,500 Caterpillar, Inc. 1,252,875
55,300 General Electric Co. 3,117,538
72,000 Litton Industries, Inc. * 2,654,992
139,900 McDermott International, Inc. 3,375,087
40,800 Rubbermaid, Inc. 1,132,200
18,000 Xerox Corp. 2,110,500
50,000 Westinghouse Electric Corp. $731,250
-----------
14,374,442
-----------
AUTOMOTIVE - 8.09%
10,500 Chrysler Corp. 502,688
33,500 Exide Corp. 1,440,500
90,100 Federal-Mogul Corp 1,644,325
100,000 Ford Motor Co. 2,975,000
12,400 General Motors Corp. 581,250
85,200 General Motors Corp., Class E 3,706,200
33,400 General Motors, Class H 1,319,300
-----------
12,169,263
-----------
AEROSPACE-AIRLINES - 5.97%
56,100 AlliedSignal, Inc. 2,496,450
28,600 Boeing Co. 1,791,075
35,000 Lockheed Martin Corp. 2,209,375
41,600 Sundstrand Corp. 2,485,600
-----------
8,982,500
-----------
ENERGY - 5.75%
48,200 Amerada Hess Corp. 2,355,775
65,400 J Ray Mcdermott S.A. * 1,446,975
38,400 Tenneco, Inc. 1,766,400
36,000 Unocal Corp. 994,500
47,100 USX-Marathon Group 930,225
25,900 Western Atlas, Inc. * 1,149,313
-----------
8,643,188
-----------
TECHNOLOGY - 5.54%
18,900 Adaptec, Inc. * 699,300
95,800 Honeywell, Inc. 4,131,375
19,000 International Business Machines Corp. 1,824,000
48,500 MFS Communications, Series A * 1,673,250
-----------
8,327,925
-----------
HOTELS - 3.79%
364,300 Host Marriott Corp. * 3,870,688
50,900 Marriott International, Inc. 1,826,038
-----------
5,696,726
-----------
UTILITIES - 3.22%
40,500 American Telephone and Telegraph Corp. 2,151,563
21,100 NYNEX Corp. 849,275
64,700 WMX Technologies, Inc. 1,835,863
-----------
4,836,701
-----------
</TABLE>
See Notes to Financial Statements.
28 -------------------------------------------
<PAGE>
SELECT GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
-------------------------------------------------------------------------
<S> <C> <C>
METALS AND MINING - 1.77%
30,500 Molten Metal Technology, Inc. * $709,125
33,000 Phelps Dodge Corp. 1,947,000
-----------
2,656,125
-----------
RETAIL - 1.73%
37,500 Sears, Roebuck & Co. 2,245,313
12,300 Toys 'R' Us, Inc. * 359,775
-----------
2,605,088
-----------
TRANSPORTATION - 0.85%
20,100 Burlington Northern, Inc. 1,273,838
-----------
BUILDING AND CONSTRUCTION - 0.73%
61,000 Rauma Oy, ADR 1,098,000
-----------
REAL ESTATE - 0.18%
18,200 Mcarthur/Glen Realty Corp., REIT 266,175
----------
TOTAL COMMON STOCKS 138,595,718
-----------
(Cost $126,461,558)
PREFERRED STOCK - 0.28%
17,733 Times Mirror Co.,Series B 423,375
-----------
TOTAL PREFERRED STOCK 423,375
-----------
(Cost $399,403)
PAR VALUE
----------
CORPORATE BONDS - 3.33%
$3,900,000 Roche Holdings, Inc.
1.00%, 04/20/10 (B) 1,550,250
1,429,000 Champion International Corp.
Subordinated Debenture
6.50%, 04/15/11 2,100,630
1,150,000 Pennzoil Co., Senior Debenture
6.50%, 01/15/03 1,362,750
-----------
TOTAL CORPORATE BONDS 5,013,630
-----------
(Cost $4,374,673)
COMMERCIAL PAPER (A) - 1.66%
2,500,000 Reckitt & Coleman, Inc.
6.05%, 07/24/95 2,490,337
-----------
TOTAL COMMERCIAL PAPER 2,490,337
-----------
(Cost $2,490,337)
SHARES
------
INVESTMENT COMPANIES - 3.19%
4,353,581 Lehman Brothers Prime Fund, Class A $4,353,581
445,000 Temporary Investment Fund, Class B 445,000
-----------
TOTAL INVESTMENT COMPANIES 4,798,581
-----------
(Cost $4,798,581)
CONTRACTS
---------
PURCHASED OPTIONS - 0.02%
75 Boeing Co. Put, $65.00, 07/22/95 19,219
100 Avon Products Put, $65.00, 08/19/95 10,000
-----------
TOTAL PURCHASED OPTIONS 29,219
-----------
(Premium Paid $39,141)
TOTAL INVESTMENTS - 100.67% 151,350,860
-----------
(Cost $138,563,693)
NET OTHER ASSETS AND LIABILITIES - (0.67)% (1,007,597)
-----------
NET ASSETS - 100.00% $150,343,263
------------
------------
<FN>
------------------------
* Non income producing security.
(A) Annualized yield at time of purchase.
(B) Interest is reset at various time intervals.
ADR American Depository Receipt
REIT Real Estate Investment Trust
</TABLE>
See Notes to Financial Statements.
---------------------------------------------- 29
<PAGE>
SELECT INCOME FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 57.87%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 25.09%
$25,000 8.04%, 10/10/01, Princ Strip ** $23,095
225,000 7.99%, 11/01/01, Princ Strip ** 207,045
100,000 7.94%, 11/22/01, Princ Strip ** 91,625
850,000 7.56%, 12/20/01, Princ Strip ** 771,902
25,000 7.89%, 03/09/02, Princ Strip ** 22,434
495,188 7.50%, 07/01/23 496,579
152,798 7.50%, 07/01/23 153,227
393,867 7.50%, 09/01/23 394,974
103,592 8.50%, 02/25/24 * 101,812
134,269 7.50%, 04/01/24 134,646
940,909 7.00%, 06/01/24 924,735
440,441 7.00%, 06/01/24 432,870
376,573 8.00%, 06/01/24 383,513
250,262 8.00%, 06/01/24 254,874
792,415 7.50%, 07/01/24 794,642
417,583 7.50%, 08/01/24 418,756
29,338 8.00%, 10/01/24 29,879
775,000 7.00%,07/01/25 (B) 761,680
900,000 7.00%,07/01/25 (B) 884,531
1,200,000 7.00%,07/01/25 (B) 1,179,375
325,000 7.00%,07/01/25 (B) 319,414
950,000 7.00%,08/01/25 (B) 933,672
1,850,000 7.00%,08/01/25 (B) 1,818,203
475,000 7.00%,08/01/25 (B) 466,836
225,000 7.00%,08/01/25 (B) 221,133
-----------
12,221,452
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 19.04%
58,794 9.00%, 07/15/18 62,079
19,194 9.00%, 11/15/19 20,226
65,765 7.50%, 03/15/23 66,094
241,340 8.00%, 04/15/23 247,072
248,213 7.50%, 06/15/23 249,454
965,251 7.00%, 07/15/23 (C) 949,865
736,273 7.50%, 09/15/23 739,954
897,572 5.50%, 11/20/23 890,984
410,563 7.00%, 11/15/23 404,018
186,415 7.50%, 11/15/23 187,347
190,690 7.50%, 07/15/23 191,643
223,005 7.50%, 11/15/23 224,120
220,387 7.50%, 01/15/24 221,489
214,994 5.00%, 01/20/24 208,949
618,043 5.50%, 01/20/24 610,416
455,687 7.00%, 02/15/24 448,424
260,777 6.00%, 02/20/24 260,974
433,337 5.50%, 02/20/24 427,989
298,264 5.00%, 06/20/24 (B) 297,285
395,568 7.00%, 07/15/24 389,262
350,699 8.00%, 08/15/24 359,028
326,576 9.00%, 11/15/24 344,139
382,535 9.00%, 01/15/25 401,780
508,469 9.00%, 01/15/25 534,050
199,708 9.50%, 05/15/25 211,691
325,000 7.50%, 08/15/25 (B) 325,508
-----------
9,273,840
-----------
U.S. TREASURY NOTES - 6.35%
1,225,000 5.63%, 01/31/98 1,216,768
380,000 5.13%, 04/30/98 (C) 372,461
1,265,000 6.88%, 07/31/99 (C) 1,304,531
200,000 6.38%, 08/15/02 202,374
-----------
3,096,134
-----------
U.S. TREASURY BONDS - 3.93%
790,000 7.25%, 05/15/16 (C) 837,274
925,000 8.13%, 08/15/19 (C) 1,076,182
-----------
1,913,456
-----------
RESOLUTION TRUST CORPORATION - 1.37%
81,550 7.50%, 09/01/22 81,410
209,169 8.00%, 06/25/26 206,685
123,581 8.00%, 04/25/25 121,805
275,000 6.90%, 06/01/25 257,555
-----------
667,455
-----------
2,725,000 U.S. TREASURY BOND, PRINCIPAL STRIP - 0.93%
6.83%, 11/15/21 ** 452,704
-----------
U.S. AGENCY BOND - 0.74%
350,000 Federal Deposit Insurance Corp., Remic
7.85%, 09/25/25 359,297
-----------
FEDERAL HOME LOAN MORTGAGES - 0.42%
195,897 9.50%, 03/15/23 205,631
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS 28,189,969
-----------
(Cost $27,656,764)
</TABLE>
See Notes to Financial Statements
30 -------------------------------------------
<PAGE>
SELECT INCOME FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
CORPORATE NOTES AND BONDS - 34.95%
FINANCIAL - 9.59%
$275,000 Capital One Bank, MTN
8.63%, 01/15/97 $283,437
388,387 Dr Structured Finance Corp.
Series 1994-K1
7.60%, 08/15/07 373,881
42,030 Equicon Loan Trust, 1993-1,
Home Equity Loan Trust
5.85%, 11/19/12 40,789
200,000 Fairfax Financial Holdings, Ltd
7.75%, 12/15/03 196,270
400,000 Federal Realty Investment Trust
8.88%, 01/15/00 426,980
450,000 Finova Capital Corp., Notes
6.45%, 06/01/00 444,789
150,000 Ford Motor Credit, MTN
6.97%, 07/12/96 * 146,625
406,411 Greentree Securitized Trust, Series 94-A
6.90%, 02/15/04 401,583
450,000 Hanson America, Inc.
2.39%, 03/01/01 (D) 362,345
800,000 Markel Corp., Notes
7.25%,11/01/03 769,768
400,000 Scherer (R.P.), Senior Notes
6.75%, 02/01/04 363,908
450,000 TIG Holdings, Inc., Notes
8.13%, 04/15/05 474,012
375,000 Taubman Realty Group, Ltd
8.00%,06/15/99 386,363
-----------
4,670,750
-----------
BANKING - 4.67%
100,000 First Interstate Bancorp, MTN
8.70%, 07/18/95 100,078
450,000 First USA Bank
5.75%, 01/15/99 435,420
400,000 Georgia Pacific Corp.
9.95%, 06/15/02 464,920
500,000 Integra Financial Corp.
6.50%, 04/15/00 494,520
250,000 Midlantic Bank Corp.
9.25%, 09/01/99 270,535
400,000 St. Georges Bank
6.88%, 04/01/99 (D) 400,804
100,000 United Jersey Bank Financial Corp.
8.63%, 12/10/02 107,961
-----------
2,274,238
-----------
PRINTING AND PUBLISHING - 4.64%
$150,000 News America Holdings, Inc.
Senior Debenture
9.25%, 02/01/13 $ 168,182
200,000 News America Holdings, Inc.
7.75%, 01/20/24 193,882
275,000 News America Holdings, Inc.
9.50% 07/15/24 317,292
200,000 News America Holdings, Inc.
8.45%, 08/01/34 217,090
575,000 Time Warner, Inc., Debenture
9.13%, 01/15/13 597,592
740,000 Time Warner, Inc., Debenture
9.15%, 02/01/23 767,506
-----------
2,261,544
-----------
SECURITY, BROKERS AND DEALERS - 4.45%
150,000 Goldman Sachs Group, L.P.
6.88%, 09/15/99 (D) 150,816
575,000 Goldman Sachs
6.38%, 06/15/00 (D) 563,230
400,000 Morgan Stanley Inc., Notes
8.10%, 06/24/02 425,640
100,000 Salomon Brothers, Inc.
7.13%, 08/01/99 99,395
150,000 Salomon, Inc., MTN
6.13%, 05/15/98 146,943
75,000 Salomon, Inc., MTN
6.36%, 04/01/98 73,964
125,000 Salomon, Inc., MTN
6.04%, 07/09/98 122,034
75,000 Salomon, Inc., MTN
5.88%, 07/29/97 73,545
50,000 Salomon, Inc., MTN
6.24%, 04/05/99 * 47,813
100,000 Salomon Inc., MTN
5.79%, 11/26/97 97,568
350,000 Smith Barney Holdings, Inc.
7.88%, 10/01/99 364,609
-----------
2,165,557
-----------
INSURANCE - 3.47%
500,000 John Hancock Mutual Life Insurance Co.
7.38%, 02/15/24 (D) 456,715
425,000 Liberty Mutual Insurance Co.
8.20%, 05/04/07 (D) 443,241
400,000 New England Mutual Life Insurance Co.
7.88%, 02/15/24 (D) 366,888
400,000 US F&G Corp., Senior Notes
8.38%, 06/15/01 425,560
-----------
1,692,404
-----------
</TABLE>
See Notes to Financial Statements.
--------------------------------------------- 31
<PAGE>
SELECT INCOME FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE - 2.85%
$400,000 Equities Residential Properties Operating, Ltd
Senior Note, REIT
8.50%, 05/15/99 (D) $415,756
475,000 Merry Land and Investment, Inc.
7.25%, 06/15/05 469,381
500,000 SKW Real Estate, Ltd
7.45%, 04/15/03 (D) 500,625
-----------
1,385,762
-----------
OIL, GAS, AND PETROLEUM - 2.68%
325,000 Hydro Quebec, Debenture
8.05%, 07/07/24 355,202
400,000 Occidental Petroleum Corp., MTN
7.06%, 09/09/99 404,360
125,000 Occidental Petroleum Corp., Senior Debentures
11.13%, 06/01/19 149,951
300,000 Systems Energy Resources
6.00%, 04/01/98 295,182
100,000 Systems Energy Resources, Inc.
7.63%, 04/01/99 101,990
-----------
1,306,685
-----------
MANUFACTURING - 0.94%
425,000 Noranda Forest, Inc. Debenture
8.88%, 10/15/99 456,824
-----------
FOREIGN - 0.88%
465,000 Colombia, Republic of
7.25%, 02/23/04 430,125
-----------
PROCESSED FOODS - 0.78%
350,000 Ralcorp Holdings
8.75%, 09/15/04 378,389
-----------
TOTAL CORPORATE NOTES AND BONDS 17,022,278
-----------
(Cost $16,823,276)
ASSET-BACKED SECURITIES - 4.00%
126,152 Advanta Mortgage Loan Trust, Series 93-4
5.50%, 03/25/10 117,676
40,026 Advanta Mortgage Loan Trust, Series 94-1
6.30%, 07/25/25 38,662
39,287 Alliance Funding Corp. Home Equity
Loan Trust, Series 1993-1, Class A
5.90%, 05/20/08 37,789
535,634 Alliance Funding Corp. Mortgage Loan Trust
Series 1995-1, Class A-1
8.05%, 04/25/26 545,677
239,231 Equacredit Home Equity Loan Trust
Series 1994-1
5.80%, 03/15/09 229,176
$265,486 Fund America Investors Corp. II,
Series 1993-F
5.40%, 09/25/09 $252,709
300,000 The Money Store Home Equity
Series 1994-D
8.75%, 09/15/01 319,219
85,408 UCFC Loan Trust, Home Equity Loan
Series 1993-B
6.08%, 07/25/14 83,286
323,730 UCFC Loan Trust, Home Equity Loan
Series 1994-BA6
7.10%, 03/10/23 324,843
-----------
TOTAL ASSET BACKED SECURITIES 1,949,037
-----------
(Cost $1,946,399)
COMMERCIAL PAPER (A) - 6.15%
1,000,000 Federal Home Loan Bank
5.86%, 07/14/95 997,884
1,000,000 Federal Home Loan Mortgage Corp.
5.85%, 07/14/95 997,888
1,000,000 Federal National Mortgage Association
5.76%, 07/11/95 998,367
-----------
TOTAL COMMERCIAL PAPER 2,994,139
-----------
(Cost $2,994,139)
Shares
------
INVESTMENT COMPANIES - 8.84%
1,882,671 Chase Vista U.S. Government Money
Market Fund 1,882,671
2,423,402 ILA Prime Obligation Portfolio Fund 2,423,402
-----------
TOTAL INVESTMENT COMPANIES 4,306,073
-----------
(Cost $4,306,073)
TOTAL INVESTMENTS - 111.81% 54,461,496
-----------
(Cost $53,726,651)
NET OTHER ASSETS AND LIABILITIES - (11.81)% (5,750,315)
-----------
NET ASSETS - 100.00% $48,711,181
-----------
-----------
<FN>
------------------------------------
* Interest is reset at various time intervals.
** Stripped securities represent the splitting of cash flows into
interest and principal. Holders, as indicated, are entitled to that
portion of payment representing interest only or principal only.
(A) Annualized yields at time of purchase.
(B) Forward commitments
(C) Collateral for Forward Commitments
(D) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold, in
transactions exempt from registration, to qualified institutional
buyers. At June 30, 1995, these securities amounted to
$3,660,420 or 7.51% of net assets.
MTN Medium Term Notes
REIT Real Estate Investment Trust
</TABLE>
See Notes to Financial Statements.
32 -------------------------------------------
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER (A) - 57.05%
FINANCIAL - 22.70%
$3,500,000 Banco Real S.A.
5.77%, 10/23/95 $3,436,049
2,000,000 B.I. Funding, Inc.
6.00%, 07/21/95 1,993,333
2,500,000 Dow Jones & Co., Inc.
5.82%, 10/11/95 2,458,775
5,000,000 Ford Motor Credit Co.
6.04%, 07/06/95 4,995,806
1,000,000 Galicia Funding Corp., Series A
6.15%, 07/21/95 996,583
600,000 Industrial Funding Corp.
6.00%, 07/11/95 599,000
1,000,000 Mitsui & Co. USA, Inc.
6.13%, 09/29/95 984,688
5,000,000 Monte Dei Paseni Di Siena Corp.
6.05%, 07/20/95 4,984,035
2,000,000 National Westminister Bank, USA
5.82%, 09/18/95 1,974,457
2,500,000 NationsBank Corp.
6.00%, 10/02/95 2,500,000
260,000 Progress Funding Corp.
6.03%, 07/27/95 258,868
325,000 Progress Funding Corp.
6.03%, 08/10/95 322,823
350,000 Progress Funding Corp.
6.03%, 08/17/95 347,245
300,000 Progress Funding Corp.
5.89%, 10/22/95 293,141
3,000,000 RCC Capital Corp.
6.09%, 07/27/95 2,986,805
2,100,000 Svenska Handelsbanken, Inc.
5.72%, 10/23/95 2,061,962
-----------
31,193,570
-----------
TECHNOLOGY - 7.61%
$3,000,000 CSC Enterprise
5.87%, 09/21/95 $ 2,959,888
4,000,000 Minolta Corp.
6.10%, 07/07/95 3,995,933
3,500,000 Southland Corp.
6.06%, 07/06/95 3,497,054
-----------
10,452,875
-----------
EDUCATION - 6.13%
4,000,000 Emory University
6.06%, 07/06/95 4,000,000
3,500,000 Yale University
5.74%, 10/16/95 3,440,288
1,000,000 Yale University
5.85%, 10/16/95 982,613
-----------
8,422,901
-----------
INDUSTRIAL - 5.42%
2,500,000 Kobe Steel International USA, Inc.
6.06%, 07/13/95 2,494,950
4,000,000 Reckitt & Coleman
6.05%, 08/07/95 3,975,128
1,000,000 Reckitt & Coleman
5.90%, 09/29/95 985,250
-----------
7,455,328
-----------
SECURITY, BROKERS AND DEALERS - 3.61%
5,000,000 Paine Webber Group Inc.
6.07%, 08/22/95 4,956,161
-----------
</TABLE>
See Notes to Financial Statements.
---------------------------------------------------------------- 33
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE - 3.41%
$1,000,000 American Honda Finance Corp.
6.04%, 08/22/95 $991,276
1,250,000 American Honda Finance Corp.
6.00%, 09/14/95 1,234,557
2,500,000 American Honda Finance Corp.
6.00%, 09/15/95 2,468,333
-----------
4,694,166
-----------
EQUIPMENT LEASING - 2.95%
500,000 Cooperative Association of Tractor Dealers
6.13%, 08/08/95 496,767
2,000,000 Cooperative Association of Tractor Dealers
6.07%, 08/22/95 1,982,464
1,600,000 Cooperative Association of Tractor Dealers
6.12%, 09/07/95 1,581,504
-----------
4,060,735
-----------
UTILITIES - 2.70%
2,000,000 BICC Cables Corp.
6.05%, 07/12/95 1,996,303
1,500,000 BICC Cables Corp.
5.90%, 09/06/95 1,483,529
235,000 Natural Rural Utilities
5.85%, 09/06/95 232,442
----------
3,712,274
-----------
MISCELLANEOUS - 1.45%
2,000,000 ABS, Inc.
6.06%, 07/28/95 1,990,910
-----------
OTHER GOVERNMENTS - 1.07%
1,500,000 Vattenfall Treasury, Inc.
5.77%, 10/23/95 1,472,593
-----------
TOTAL COMMERCIAL PAPER 78,411,513
-----------
(Cost $78,411,513)
CORPORATE NOTES AND BONDS - 28.78%
FINANCIAL - 22.24%
$2,500,000 Advanta Credit Card Master Trust,
Series 1993-1
6.21%, 11/30/98 (B) * $2,500,000
1,000,000 Advanta Credit Card Master Trust,
Series 1993-1
6.21%, 05/04/96 (B) * 1,000,000
1,175,000 Associates Corp. of North America
8.80%, 03/01/96 1,193,681
1,585,000 BankAmerica Corp., MTN
5.88%, 11/15/95 1,583,258
500,000 CIT Group Holdings, Inc.
5.65%, 11/15/95 498,968
2,500,000 Deutsche Bank AG
6.35%, 05/29/96 2,500,000
5,000,000 First National Bank of Boston
6.25%, 04/08/96 * 5,001,000
1,500,000 General Electric Capital Corp.
5.25%, 11/15/95 1,494,438
1,000,000 General Motors Acceptance Corp., MTN
6.75%, 05/17/96 1,002,852
5,000,000 General Motors Acceptance Corp., MTN
5.96%, 06/07/96 * 5,000,000
1,700,000 ITT Corp.
5.25%, 02/15/96 1,689,373
2,350,000 Massachusetts State Health and
Education Facility Northeastern University
Series F
6.16%, 08/01/95 2,350,000
1,250,000 Pennsylvania Economic Development
Financial Authority, Series D1
6.10%, 12/01/09 * 1,250,000
3,000,000 PNC Bank, N.A., MTN
5.64%, 08/07/95 * 2,999,781
500,000 World Savings & Loan Association, MTN
5.80%, 11/20/95 499,200
-----------
30,562,551
-----------
</TABLE>
See Notes to Financial Statements.
34 -------------------------------------------
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS, CONTINUED - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
----------------------------------------------------------------------
<S> <C> <C>
SECURITY, BROKERS AND DEALERS - 6.54%
$2,000,000 Bear Stearns Cos., MTN
6.21%, 10/05/95 * $ 2,000,256
3,000,000 Bear Stearns Cos., MTN
5.81%, 03/28/96 * 3,000,000
3,000,000 Merrill Lynch & Co., Inc., MTN
6.08%, 06/12/96 * 2,999,431
1,000,000 Merrill Lynch & Co., Inc.
5.88%, 12/01/95 998,873
-----------
8,998,560
-----------
TOTAL CORPORATE NOTES AND BONDS 39,561,111
----------
(Cost $39,561,111)
CERTIFICATES OF DEPOSIT - 5.09%
5,000,000 Bayerische Landesbank Girozentrale
6.38%, 05/31/96 4,998,908
2,000,000 Dai-Ichi Kangyo Bank
5.74%, 08/18/95 1,998,035
-----------
TOTAL CERTIFICATE OF DEPOSIT 6,996,943
-----------
(Cost $6,996,943)
U.S. GOVERNMENT BACKED BONDS - 2.55%
FEDERAL HOME LOAN BANK - 2.55%
3,000,000 6.52%, 04/25/96 3,001,410
500,000 5.98%, 07/03/96 500,000
-----------
3,501,410
-----------
TOTAL U.S. GOVERNMENT BACKED BONDS 3,501,410
-----------
(Cost $3,501,410)
SHARES
-------
INVESTMENT COMPANIES - 6.10%
1,887,567 Goldman Sachs Financial Square Pop 1,887,567
6,500,274 Lehman Brothers Prime Fund, Class A 6,500,274
-----------
TOTAL INVESTMENT COMPANIES 8,387,841
-----------
(Cost $8,387,841)
TOTAL INVESTMENTS - 99.57% 136,858,818
-----------
(Cost $136,858,818)
NET OTHER ASSETS AND LIABILITIES - 0.43% 585,208
-----------
NET ASSETS - 100.00% $137,444,026
-----------
-----------
<FN>
--------------------
* Interest is reset at various time intervals.
(A) Annualized yields at time of purchase.
(B) Securities exempt from registration under Rule 144a of the
Securities Act of 1933. These securities may be resold, in
transactions exempt from registration, to qualified
institutional buyers. At June 30, 1995, these securities
amounted to $3,500,000 or 2.55% of net assets.
MTN Medium Term Notes
</TABLE>
35
<PAGE>
ALLMERICA INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES - JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
SELECT SELECT SELECT
INTERNATIONAL AGGRESSIVE CAPITAL
EQUITY FUND GROWTH FUND APPRECIATION FUND
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost. . . . . . . . . . . . . . . . . $ 63,965,410 $150,124,761 $ 10,110,378
Net unrealized appreciation (depreciation) . . . . . 3,996,652 42,524,673 952,883
------------ ------------ ------------
Total investments at value. . . . . . . . . . . . 67,962,062 192,649,434 11,063,261
Cash . . . . . . . . . . . . . . . . . . . . . . . . . -- -- 64,892
Forward currency *. . . . . . . . . . . . . . . . . . . 2,937,590 -- 97,278
Forward foreign currency sold at cost (Notes 2 & 8) . . 11,467,471 -- 453,694
Receivable for investments sold . . . . . . . . . . . . 400,918 1,266,382 57,137
Receivable for shares sold . . . . . . . . . . . . . . 193,701 221,004 166,157
Receivable from investment adviser. . . . . . . . . . . -- -- 1,391
Interest and dividend receivables . . . . . . . . . . . 352,249 116,784 9,830
Dividend reclaim receivables. . . . . . . . . . . . . . 24,845 -- --
------------ ------------ ------------
Total Assets. . . . . . . . . . . . . . . . . . . 83,338,836 194,253,604 11,913,640
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased . . . . . . . . . . . 3,492,702 2,301,181 705,708
Payable for shares purchased. . . . . . . . . . . . . . 65 61,196 24
Payable for foreign currency purchased. . . . . . . . . 2,586,816 -- 97,891
Forward foreign currency contracts
sold at value (Notes 2 & 8)**. . . . . . . . . . . . 11,897,138 -- 467,124
Payable to Custodian. . . . . . . . . . . . . . . . . . 215,190 261,066 --
Advisory fee payable (Note 3) . . . . . . . . . . . . . 52,345 148,999 12,217
Accrued expenses and other payables . . . . . . . . . . 26,906 49,902 13,659
------------ ------------ ------------
Total Liabilities. . . . . . . . . . . . . . . . . . 18,271,162 2,822,344 1,296,623
------------ ------------ ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $ 65,067,674 $191,431,260 $ 10,617,017
------------ ------------ ------------
------------ ------------ ------------
NET ASSETS consist of
Paid-in capital (Note 4). . . . . . . . . . . . . . . . $ 61,305,833 $162,924,292 $ 9,679,145
Undistributed (Overdistributed)
net investment income. . . . . . . . . . . . . . . . 577,764 55,159 10,101
Accumulated net realized gain (loss) on investments
sold, foreign currency . . . . . . . . . . . . . . . (383,559) (14,072,864) (11,568)
Net unrealized appreciation (depreciation) of
investments, foreign currency, dividends
and reclaims receivable. . . . . . . . . . . . . . . 3,567,636 42,524,673 939,339
------------ ------------ ------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $ 65,067,674 $191,431,260 $ 10,617,017
------------ ------------ ------------
------------ ------------ ------------
Share of beneficial interest outstanding . . . . . . . . . 61,664,924 119,262,831 9,366,205
NET ASSET VALUE,
Offering and redemption price per share
(Net Assets/Shares Outstanding) . . . . . . . . . . . . $ 1.055 $ 1.605 $ 1.134
------------ ------------ ------------
------------ ------------ ------------
<FN>
------------------------------
* The cost for foreign currency for the Select Capital Appreciation Fund was
$97,891 and $2,931,447 for the Select International Equity Fund.
** The cost for forward foreign currency contracts for the Select Capital
Appreciation Fund was $453,694 and $11,467,471 for the Select International
Equity Fund.
</TABLE>
36 See Notes to Financial Statements.
--------------------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
SELECT SELECT GROWTH SELECT MONEY
GROWTH AND INCOME INCOME MARKET
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost. . . . . . . . . . . . . . . . . $ 99,606,580 $138,563,693 $ 53,726,651 $136,858,818
Net unrealized appreciation (depreciation) . . . . . 24,195,570 12,787,167 734,845 --
------------ ------------ ------------ ------------
Total investments at value. . . . . . . . . . . . 123,802,150 151,350,860 54,461,496 136,858,818
Cash . . . . . . . . . . . . . . . . . . . . . . . . . -- 10,398 466 64,814
Forward currency *. . . . . . . . . . . . . . . . . . . -- -- -- --
Forward foreign currency sold at cost (Notes 2 & 8) . . -- -- -- --
Receivable for investments sold . . . . . . . . . . . . 975,036 34,991 685,782 --
Receivable for shares sold . . . . . . . . . . . . . . 188,713 5,856 3,791 630,093
Receivable from investment adviser. . . . . . . . . . . -- -- 2,547 --
Interest and dividend receivables . . . . . . . . . . . 76,190 339,347 546,123 540,490
Dividend reclaim receivables. . . . . . . . . . . . . . -- -- -- --
------------ ------------ ------------ ------------
Total Assets. . . . . . . . . . . . . . . . . . . 125,042,089 151,741,452 55,700,205 138,094,215
------------ ------------ ------------ ------------
LIABILITIES:
Payable for investments purchased . . . . . . . . . . . 3,001,690 1,147,857 6,912,047 500,000
Payable for shares purchased. . . . . . . . . . . . . . 48,354 115,655 21,146 72,630
Payable for foreign currency purchased. . . . . . . . . -- -- -- --
Forward foreign currency contracts
sold at value (Notes 2 & 8)**. . . . . . . . . . . . -- -- -- --
Payable to Custodian. . . . . . . . . . . . . . . . . . 17,847 -- -- --
Advisory fee payable (Note 3) . . . . . . . . . . . . . 81,551 90,689 23,351 31,179
Accrued expenses and other payables . . . . . . . . . . 39,360 43,988 32,480 46,380
------------ ------------ ------------ ------------
Total Liabilities. . . . . . . . . . . . . . . . . . 3,188,802 1,398,189 6,989,024 650,189
------------ ------------ ------------ ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $121,853,287 $150,343,263 $ 48,711,181 $137,444,026
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSETS consist of
Paid-in capital (Note 4). . . . . . . . . . . . . . . . $102,576,194 $136,240,469 $ 49,310,969 $137,444,184
Undistributed (Overdistributed)
net investment income. . . . . . . . . . . . . . . . 150,169 15,455 5,688 --
Accumulated net realized gain (loss) on investments
sold, foreign currency . . . . . . . . . . . . . . . (5,068,646) 1,300,172 (1,340,321) (158)
Net unrealized appreciation (depreciation) of
investments, foreign currency, dividends
and reclaims receivable. . . . . . . . . . . . . . . 24,195,570 12,787,167 734,845 --
------------ ------------ ------------ ------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $121,853,287 $150,343,263 $ 48,711,181 $137,444,026
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SHARE OF BENEFICIAL INTEREST OUTSTANDING . . . . . . . . . 93,525,212 128,911,531 48,920,894 137,444,184
NET ASSET VALUE,
Offering and redemption price per share
(Net Assets/Shares Outstanding) . . . . . . . . . . . . $ 1.303 $ 1.166 $ 0.996 $1.000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<FN>
------------------------------
* The cost for foreign currency for the Select Capital Appreciation Fund was
$97,891 and $2,931,447 for the Select International Equity Fund.
** The cost for forward foreign currency contracts for the Select Capital
Appreciation Fund was $453,694 and $11,467,471 for the Select International
Equity Fund.
</TABLE>
37
----------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
SELECT SELECT SELECT
INTERNATIONAL AGGRESSIVE CAPITAL
EQUITY FUND* GROWTH FUND APPRECIATION FUND**
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2) . . . . . . . . . . . . . . . . . . . $ 4,748 $ 135,561 $ 21,350
Dividends (Note 2). . . . . . . . . . . . . . . . . . . 1,034,918 802,695 5,549
Less net foreign taxes withheld . . . . . . . . . . . . (130,212) -- (305)
----------- ----------- ----------
Total investment income. . . . . . . . . . . . . . . 909,454 938,256 26,594
----------- ----------- ----------
EXPENSES
Investment advisory fee (Note 3). . . . . . . . . . . . 254,914 789,549 12,217
Custodian fee . . . . . . . . . . . . . . . . . . . . . 34,534 10,180 2,192
Fund accounting fee (Note 3). . . . . . . . . . . . . . 18,434 19,624 4,384
Legal fee . . . . . . . . . . . . . . . . . . . . . . . 1,378 2,726 4,267
Audit Fee . . . . . . . . . . . . . . . . . . . . . . . 3,883 3,584 1,267
Trustees' fees and expenses (Note 3). . . . . . . . . . 724 2,492 881
Reports to Shareholders . . . . . . . . . . . . . . . . 853 36,062 776
Insurance . . . . . . . . . . . . . . . . . . . . . . . 272 1,363 275
Miscellaneous . . . . . . . . . . . . . . . . . . . . . 2,819 17,517 64
----------- ----------- ----------
Total expenses before reimbursement . . . . . . . . . . 317,811 883,097 26,323
Less: Reimbursement (Note 3). . . . . . . . . . . . . . -- -- (9,830)
----------- ----------- ----------
Total expenses net of reimbursement . . . . . . . . . . 317,811 883,097 16,493
----------- ----------- ----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . 591,643 55,159 10,101
----------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Net realized gain (loss) on investments sold. . . . . . (465,944) (2,777,469) (10,524)
Net realized (loss) on foreign currency . . . . . . . . (76,634) -- (1,044)
Net change in unrealized appreciation (depreciation)
of foreign currency, dividends and
reclaims receivable. . . . . . . . . . . . . . . . . (424,390) -- (13,544)
Net change in unrealized appreciation (depreciation)
of investments . . . . . . . . . . . . . . . . . . . 5,435,380 26,442,871 952,883
----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . 4,468,412 23,665,402 927,771
----------- ----------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . . . $ 5,060,055 $23,720,561 $ 937,872
----------- ----------- ----------
----------- ----------- ----------
------------------------------
<FN>
* The Fund commenced operations on May 2, 1994.
** The Fund commenced operations on April 28, 1995.
</TABLE>
38 See Notes to Financial Statements.
--------------------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
SELECT SELECT GROWTH SELECT MONEY
GROWTH AND INCOME INCOME MARKET
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2) . . . . . . . . . . . . . . . . . . . $ 185,014 $ 120,934 $1,566,791 $3,610,947
Dividends (Note 2). . . . . . . . . . . . . . . . . . . 471,664 1,581,680 65,345 165,614
Less net foreign taxes withheld . . . . . . . . . . . . -- -- -- --
----------- ----------- ---------- ----------
Total investment income. . . . . . . . . . . . . . . 656,678 1,702,614 1,632,136 3,776,561
----------- ----------- ---------- ----------
EXPENSES
Investment advisory fee (Note 3). . . . . . . . . . . . 428,096 478,173 136,132 178,816
Custodian fee . . . . . . . . . . . . . . . . . . . . . 4,889 10,680 7,150 7,590
Fund accounting fee (Note 3). . . . . . . . . . . . . . 19,479 19,530 20,142 18,100
Legal fee . . . . . . . . . . . . . . . . . . . . . . . 2,726 2,726 2,726 2,726
Audit Fee . . . . . . . . . . . . . . . . . . . . . . . 3,584 3,584 9,243 4,760
Trustees' fees and expenses (Note 3). . . . . . . . . . 2,208 2,474 1,024 3,001
Reports to Shareholders . . . . . . . . . . . . . . . . 21,427 28,873 6,531 18,010
Insurance . . . . . . . . . . . . . . . . . . . . . . . 760 760 299 1,267
Miscellaneous . . . . . . . . . . . . . . . . . . . . . 23,726 14,131 4,226 5,140
----------- ----------- ---------- ----------
Total expenses before reimbursement. . . . . . . . . 506,895 560,931 187,473 239,410
Less: Reimbursement (Note 3) . . . . . . . . . . . . -- -- (2,547) --
----------- ----------- ---------- ----------
Total expenses net of reimbursement. . . . . . . . . 506,895 560,931 184,926 239,410
----------- ----------- ---------- ----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . 149,783 1,141,683 1,447,210 3,537,151
----------- ----------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Net realized gain (loss) on investments sold. . . . . . (1,366,118) 1,983,609 (92,958) 189
Net realized (loss) on foreign currency . . . . . . . . -- -- -- --
Net change in unrealized appreciation (depreciation)
of foreign currency, dividends and
reclaims receivable. . . . . . . . . . . . . . . . . -- -- -- --
Net change in unrealized appreciation (depreciation)
of investments . . . . . . . . . . . . . . . . . . . 19,355,404 14,546,652 3,120,626 --
----------- ----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . 17,989,286 16,530,261 3,027,668 189
----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . . . $18,139,069 $17,671,944 $4,474,878 $3,537,340
----------- ----------- ---------- ----------
----------- ----------- ---------- ----------
</TABLE>
39
----------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
SELECT
INTERNATIONAL SELECT AGGRESSIVE
EQUITY FUND GROWTH FUND
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1995 PERIOD ENDED JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994* (UNAUDITED) DECEMBER 31, 1994
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . . . $40,497,806 $ -- $136,573,109 $ 66,250,873
----------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . 591,643 131,963 55,159 (221,519)
Net realized gain (loss) on investments sold and
foreign currency . . . . . . . . . . . . . . . . . . (542,578) 100,896 (2,777,469) (10,161,948)
Net change in unrealized appreciation (depreciation)
of investments, foreign currency, dividends and
reclaims receivable. . . . . . . . . . . . . . . . . 5,010,990 (1,443,354) 26,442,871 7,667,386
----------- ------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 5,060,055 (1,210,495) 23,720,561 (2,716,081)
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . -- (38,995) -- --
Net realized gain on investments. . . . . . . . . . . . (194) (48,530) -- --
Distributions in excess of net capital gains. . . . . . -- -- -- --
----------- ------------ ------------ ------------
Total Distributions. . . . . . . . . . . . . . . . . (194) (87,525) -- --
----------- ------------ ------------ ------------
SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . . . 22,897,923 42,401,429 33,779,881 79,109,465
Issued to shareholders in reinvestment dividends. . . . 194 87,525 -- --
Costs of shares repurchased . . . . . . . . . . . . . . (3,388,110) (693,128) (2,642,291) (6,071,148)
----------- ------------ ------------ ------------
Net increase (decrease) from share transactions. . . 19,510,007 41,795,826 31,137,590 73,038,317
----------- ------------ ------------ ------------
Net increase (decrease) in net assets. . . . . . . . 24,569,868 40,497,806 54,858,151 70,322,236
----------- ------------ ------------ ------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . . . . $65,067,674 $ 40,497,806 $191,431,260 $136,573,109
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
(A) Accumulated undistributed (overdistributed)
net investment income. . . . . . . . . . . . . . . . $ 577,764 $ (13,879) $ 55,159 $ --
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 23,145,138 42,648,059 23,327,405 55,741,786
Issued to shareholders in reinvestment of dividends . . 184 90,888 -- --
Repurchased . . . . . . . . . . . . . . . . . . . . . . (3,519,584) (699,761) (1,818,531) (4,299,154)
----------- ------------ ------------ ------------
Net increase (decrease) in shares outstanding. . . . 19,625,738 42,039,186 21,508,874 51,442,632
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
------------------------------
<FN>
* The Fund commenced operations on May 2, 1994.
** The Fund commenced operations on April 28, 1995.
</TABLE>
40 See Notes to Financial Statements.
--------------------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
SELECT
CAPITAL SELECT
APPRECIATION FUND GROWTH FUND
----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1995** JUNE 30, 1995 YEAR ENDED
(UNAUDITED) (UNAUDITED) DECEMBER 31, 1994
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . . . $ -- $ 88,263,274 $ 53,853,524
----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . 10,101 149,783 266,298
Net realized gain (loss) on investments sold and
foreign currency . . . . . . . . . . . . . . . . . . (11,568) (1,366,118) (3,381,025)
Net change in unrealized appreciation (depreciation)
of investments, foreign currency, dividends and
reclaims receivable. . . . . . . . . . . . . . . . . 939,339 19,355,404 2,059,48
----------- ------------ ------------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 937,872 18,139,069 (1,055,238)
----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . -- -- (265,912)
Net realized gain on investments. . . . . . . . . . . . -- -- --
Distributions in excess of net capital gains. . . . . . -- -- --
----------- ------------ ------------
Total Distributions. . . . . . . . . . . . . . . . . -- -- (265,912)
----------- ------------ ------------
SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . . . 9,714,367 17,794,199 39,359,834
Issued to shareholders in reinvestment dividends. . . . -- -- 265,912
Costs of shares repurchased . . . . . . . . . . . . . . (35,222) (2,343,255) (3,894,846)
----------- ------------ ------------
Net increase (decrease) from share transactions. . . 9,679,145 15,450,944 35,730,900
----------- ------------ ------------
Net increase (decrease) in net assets. . . . . . . . 10,617,017 33,590,013 34,409,750
----------- ------------ ------------
(UNAUDNET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . $10,617,017 $121,853,287 $ 88,263,274
----------- ------------ ------------
----------- ------------ ------------
(A) Accumulated undistributed (overdistributed)
net investment income. . . . . . . . . . . . . . . . $ 10,101 $ 150,169 $ 386
----------- ------------ ------------
----------- ------------ ------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 9,399,688 15,221,146 35,429,310
Issued to shareholders in reinvestment of dividends . . -- -- 241,958
Repurchased . . . . . . . . . . . . . . . . . . . . . . (33,483) (1,985,238) (3,516,928)
----------- ------------ ------------
Net increase (decrease) in shares outstanding. . . . 9,366,205 13,235,908 32,154,340
----------- ------------ ------------
----------- ------------ ------------
<CAPTION>
----------------------------------------------------------------------------------------------------
SELECT GROWTH
AND INCOME
FUND
----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . . . $110,212,501 $ 60,518,037
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . 1,141,683 2,199,418
Net realized gain (loss) on investments sold and
foreign currency . . . . . . . . . . . . . . . . . . 1,983,609 2,043,101
Net change in unrealized appreciation (depreciation)
of investments, foreign currency, dividends and
reclaims receivable. . . . . . . . . . . . . . . . . 14,546,652 (3,847,540)
------------ ------------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . 17,671,944 394,979
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . (1,126,536) (2,199,265)
Net realized gain on investments. . . . . . . . . . . . -- (1,837,958)
Distributions in excess of net capital gains. . . . . . -- (683,154)
------------ ------------
Total Distributions. . . . . . . . . . . . . . . . . (1,126,536) (4,720,377)
------------ ------------
SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . . . 25,064,747 51,551,924
Issued to shareholders in reinvestment dividends. . . . 1,126,536 4,720,377
Costs of shares repurchased . . . . . . . . . . . . . . (2,605,929) (2,252,439)
------------ ------------
Net increase (decrease) from share transactions. . . 23,585,354 54,019,862
------------ ------------
Net increase (decrease) in net assets. . . . . . . . 40,130,762 49,694,464
------------ ------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . . . . $150,343,263 $110,212,501
------------ ------------
------------ ------------
(A) Accumulated undistributed (overdistributed)
net investment income. . . . . . . . . . . . . . . . $ 15,455 $ 308
------------ ------------
------------ ------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 22,974,286 48,256,893
Issued to shareholders in reinvestment of dividends . . 1,000,953 4,559,518
Repurchased . . . . . . . . . . . . . . . . . . . . . . (2,350,921) (2,119,523)
------------ -----------
Net increase (decrease) in shares outstanding. . . . 21,624,318 50,696,888
------------ -----------
------------ -----------
<FN>
------------------------------
* The Fund commenced operations on May 2, 1994.
** The Fund commenced operations on April 28, 1995.
</TABLE>
41
----------------------------------------
<PAGE>
ALLMERICA INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
SELECT INCOME MONEY MARKET
FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994 (UNAUDITED) DECEMBER 31, 1994
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . . . $40,784,092 $25,302,221 $ 95,991,332 $71,051,834
----------- ----------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . 1,447,210 2,038,969 3,537,151 3,195,275
Net realized gain (loss) on investments sold. . . . . . (92,958) (1,207,015) 189 (347)
Net change in unrealized appreciation
(depreciation) of investments. . . . . . . . . . 3,120,626 (2,340,442) -- --
----------- ----------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations. . . . . . . . . . . . . . . . . . . 4,474,878 (1,508,488) 3,537,340 3,194,928
----------- ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income . . . . . . . . . . . . . . . . . (1,441,522) (2,038,969) (3,537,151) (3,195,275)
Distributions net in excess of net investment income. . -- (7,554) -- --
Net realized gain on investments. . . . . . . . . . . . -- -- -- --
----------- ----------- ------------ -----------
Total Distributions . . . . . . . . . . . . . . . . . . (1,441,522) (2,046,523) (3,537,151) (3,195,275)
----------- ----------- ------------ -----------
SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . . . 9,717,988 19,443,913 95,977,104 135,502,179
Issued to shareholders in reinvestment of dividend. . . 1,441,522 2,046,523 3,537,151 3,195,275
Costs of shares repurchased . . . . . . . . . . . . . . (6,265,777) (2,453,554) (58,061,750) (113,757,609)
----------- ----------- ------------ -----------
Net increase (decrease) from share transactions. . . 4,893,733 19,036,882 41,452,505 24,939,845
----------- ----------- ------------ -----------
Net increase (decrease) in net assets. . . . . . . . 7,927,089 15,481,871 41,452,694 24,939,498
----------- ----------- ------------ -----------
NET ASSETS AT END OF PERIOD(INCLUDING LINE A). . . . . . . $48,711,181 $40,784,092 $137,444,026 $95,991,332
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
(A) Accumulated undistributed net investment income. . . . $ 5,688 $ -- $ -- $ --
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold . . . . . . . . . . . . . . . . . . . . . . . . . 9,981,509 19,802,226 95,977,104 135,502,179
Issued to shareholders in reinvestment of dividends . . 1,476,703 2,156,709 3,537,151 3,195,275
Repurchased . . . . . . . . . . . . . . . . . . . . . . (6,401,978) (2,543,789) (58,061,750) (113,757,609)
----------- ----------- ------------ -----------
Net increase (decrease) in shares outstanding . . . . . 5,056,234 19,415,146 41,452,505 24,939,845
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
</TABLE>
42 See Notes to Financial Statements.
--------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------------- ------------------------------------------------
NET REALIZED DISTRIBUTION
NET AND DISTRIBUTIONS IN
ASSET UNREALIZED DIVIDENDS FROM NET EXCESS
VALUE NET GAIN (LOSS) TOTAL FROM FROM NET REALIZED OF NET
YEAR ENDED BEGINNING INVESTMENT ON INVESTMENT INVESTMENT CAPITAL CAPITAL TOTAL
DECEMBER 31, OF PERIOD INCOME(2&3) INVESTMENT(2) OPERATIONS INCOME GAINS GAINS DISTRIBUTIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Select International
Equity Fund(1)
Six Months Ended
June 30, 1995(A) $0.963 0.010 0.082 0.092 -- -- -- --
1994 1.000 0.003 (0.038) (0.035) (0.001) (0.001) -- (0.002)
Select Aggressive
Growth Fund(1)
Six Months Ended
June 30, 1995(A) $1.397 -- 0.208 0.208 -- -- -- --
1994 1.431 (0.002) (0.032) (0.034) -- -- -- --
1993 1.197 0.001 0.234 0.235 (0.001) -- -- (0.001)
1992 1.000 0.001 0.197 0.198 (0.001) -- -- (0.001)
Select Capital
Appreciation Fund(1)
Period Ended
June 30, 1995(A) $1.000 0.001 0.133 0.134 -- -- -- --
Select Growth
Fund(1)
Six Months Ended
June 30, 1995(A) $1.099 0.002 0.202 0.204 -- -- -- --
1994 1.119 0.003 (0.020) (0.017) (0.003) -- -- (0.003)
1993 1.111 0.001 0.008 0.009 (0.001) -- -- (0.001)
1992 1.000 0.001 0.111 0.112 (0.001) -- -- (0.001)
<CAPTION>
NET
INCREASE
(DECREASE) NET ASSET
IN VALUE NET ASSETS
YEAR ENDED NET ASSET END OF TOTAL END OF
DECEMBER 31, VALUE PERIOD RETURN PERIOD
------------ ---------- --------- ---------- ------
<S> <C> <C> <C> <C>
Select International
Equity Fund(1)
Six Months Ended
June 30, 1995(A) 0.092 $1.055 9.55%** $ 65,068
1994 (0.037) 0.963 (3.49)%** 40,498
Select Aggressive
Growth Fund(1)
Six Months Ended
June 30, 1995(A) 0.208 $1.605 14.89%** $191,431
1994 (0.034) 1.397 (2.31)% 136,573
1993 0.234 1.431 19.51% 66,251
1992 0.197 1.197 19.85%** 9,270
Select Capital
Appreciation Fund(1)
Period Ended
June 30, 1995(A) 0.134 $1.134 13.40%** $ 10,617
Select Growth
Fund(1)
Six Months Ended
June 30, 1995(A) 0.204 $1.303 18.56%** $121,853
1994 (0.020) 1.099 (1.49)% 88,263
1993 0.008 1.119 0.84% 53,854
1992 0.111 1.111 11.25%** 9,308
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-----------------------------------------------------
OPERATING OPERATING
NET EXPENSES GROSS NET PORTFOLIO EXPENSES
YEAR ENDED INVESTMENT INCLUDING MANAGEMENT MANAGEMENT TURNOVER EXCLUDING
DECEMBER 31, INCOME REIMBURSEMENTS FEE FEE RATE REIMBURSEMENT
------------------- ---------- -------------- ---------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Select International
Equity Fund(1)
Six Months Ended
June 30, 1995(A) 2.32%* 1.25%* 1.00%* 1.00%* 14% N/A
1994 0.87%* 1.50%* 1.00%* 0.72%* 19% 1.78%*
Select Aggressive
Growth Fund(1)
Six Months Ended
June 30, 1995(A) 0.07%* 1.12%* 1.00%* 1.00%* 48% N/A
1994 (0.21)% 1.16% 1.00% 1.00% 100% N/A
1993 0.10% 1.19% 1.00% 0.96% 76% 1.23%
1992 0.34%* 1.35%* N/A N/A 33% 1.88%*
Select Capital
Appreciation Fund(1)
Period Ended
June 30, 1995(A) 0.83%* 1.35%* 1.00%* 0.20%* 27% 2.15%*
Select Growth
Fund(1)
Six Months Ended
June 30, 1995(A) 0.30%* 1.01%* 0.85%* 0.85%* 26% N/A
1994 0.37% 1.03% 0.85% 0.85% 55% N/A
1993 0.15% 1.05% 0.85% 0.82% 65% 1.08%
1992 0.40%* 1.20%* N/A N/A 3% 1.72%*
<FN>
------------------------------
* Annualized
** Not Annualized
(A) Unaudited
(1) The Funds commenced operations as follows:
Select International Select Aggressive Select Capital Select Growth
Equity Fund Growth Fund Appreciation Fund Fund
-------------------- ----------------- ----------------- -------------
May 2, 1994 August 21, 1992 April 28, 1995 August 21, 1992
(2) Amounts for Select International Equity and Select Aggressive Growth Funds
are based on the undistributed net investment income balance prior to
reclassification among capital accounts. See Note 2.
(3) Net Investment Income per share before reimbursement of fees by the
investment adviser were as follows:
Six Months Ended Years Ended December 31,
June 30, 1995 1994 1993 1992
---------------- ---- ---- ----
Select International Equity Fund $ N/A $0.002 $ N/A$ N/A
Select Aggressive Growth Fund N/A N/A 0.000 (0.001)
Select Capital Appreciation Fund 0.000 N/A N/A N/A
Select Growth Fund N/A N/A 0.001 0.000
</TABLE>
See Notes to Financial Statements. 43
<PAGE>
ALLAMERICA INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------------- ------------------------------------------------
NET REALIZED DISTRIBUTION
NET AND DISTRIBUTIONS IN
ASSET UNREALIZED DIVIDENDS FROM NET EXCESS
VALUE NET GAIN (LOSS) TOTAL FROM FROM NET REALIZED OF NET
YEAR ENDED BEGINNING INVESTMENT ON INVESTMENT INVESTMENT CAPITAL CAPITAL TOTAL
DECEMBER 31, OF PERIOD INCOME(2) INVESTMENT OPERATIONS INCOME GAINS GAINS DISTRIBUTIONS
------------- --------- ----------- ---------- ---------- ---------- ----------- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Select Growth and
Income Fund(1)
Six Months Ended
June 30, 1995(A) $ 1.027 0.009 0.139 0.148 (0.009) -- -- (0.009)
1994 1.069 0.025 (0.018) 0.007 (0.025) (0.017) (0.007) (0.049)
1993 0.990 0.023 0.079 0.102 (0.023) -- -- (0.023)
1992 1.000 0.008 (0.009) (0.001) (0.008) (0.001) -- (0.009)
Select
Income Fund(1)
Six Months Ended
June 30, 1995(A) $0.930 0.030 0.066 0.096 (0.030) -- -- (0.030)
1994 1.035 0.055 (0.105) (0.050) (0.055) -- -- (0.055)
1993 0.988 0.052 0.055 0.107 (0.052) (0.008) -- (0.060)
1992 1.000 0.018 (0.012) 0.006 (0.018) -- -- (0.018)
Money Market
Fund
Six Months Ended
June 30, 1995 (A) $1.000 0.028 -- 0.028 (0.028) -- -- (0.028)
1994 1.000 0.039 -- 0.039 (0.039) -- -- (0.039)
1993 1.000 0.030 -- 0.030 (0.030) -- -- (0.030)
1992 1.000 0.037 -- 0.037 (0.037) -- -- (0.037)
1991 1.000 0.060 -- 0.060 (0.060) -- -- (0.060)
1990 1.000 0.078 -- 0.078 (0.078) -- -- (0.078)
<CAPTION>
NET
INCREASE
(DECREASE) NET ASSET
IN VALUE NET ASSETS
YEAR ENDED NET ASSET END OF TOTAL END OF
DECEMBER 31, VALUE PERIOD RETURN PERIOD
------------ ---------- --------- ---------- ------
<S> <C> <C> <C> <C>
Select Growth and
Income Fund(1)
Six Months Ended
June 30, 1995(A) 0.139 $1.166 14.47%** $150,343
1994 (0.042) 1.027 0.73% 110,213
1993 0.079 1.069 10.37% 60,518
1992 (0.010) 0.990 (0.11)%** 7,302
Select
Income Fund(1)
Six Months Ended
June 30, 1995(A) 0.066 $0.996 10.41%** $48,711
1994 (0.105) 0.930 (4.82)% 40,784
1993 0.047 1.035 10.95% 25,302
1992 (0.012) 0.988 0.62%** 5,380
Money Market
Fund
Six Months Ended
June 30, 1995 (A) -- $1.000 2.88%** $137,444
1994 -- 1.000 3.93% 95,991
1993 -- 1.000 3.00% 71,052
1992 -- 1.000 3.78% 64,506
1991 -- 1.000 6.22% 39,909
1990 -- 1.000 8.17% 28,330
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-----------------------------------------------------
OPERATING OPERATING
NET EXPENSES GROSS NET PORTFOLIO EXPENSES
YEAR ENDED INVESTMENT INCLUDING MANAGEMENT MANAGEMENT TURNOVER EXCLUDING
DECEMBER 31, INCOME REIMBURSEMENTS FEE FEE RATE REIMBURSEMENT
------------------- ---------- -------------- ---------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Select Growth and
Income Fund(1)
Six Months Ended
June 30, 1995(A) 1.79%* 0.88%* 0.75%* 0.75%* 50% N/A
1994 2.51% 0.91% 0.75% 0.75% 107% N/A
1993 2.73% 0.99% 0.75% 0.71% 25% 1.03%
1992 3.20%* 1.10%* N/A N/A 4% 2.37%*
Select
Income Fund(1)
Six Months Ended
June 30, 1995(A) 6.42%* 0.82%* 0.60%* 0.59%* 83% 0.83%*
1994 6.07% 0.83% 0.60% 0.58% 105% 0.85%
1993 5.91% 0.91% 0.60% 0.43% 171% 1.08%
1992 5.38%* 1.00%* N/A N/A 119% 1.67%*
Money Market
Fund
Six Months Ended
June 30, 1995 (A) 5.74%* 0.39%* 0.29%* 0.29%* N/A N/A
1994 3.94% 0.45% 0.31% 0.31% N/A N/A
1993 2.95% 0.42% 0.32% 0.31% N/A 0.43%
1992 3.65% 0.44% N/A N/A N/A N/A
1991 5.98% 0.43% N/A N/A N/A N/A
1990 8.22% 0.42% N/A N/A N/A N/A
<FN>
------------------------------
* Annualized
** Not Annualized
(A) Unaudited
(1) The Funds commenced operations on August 21, 1992
(2) Net Investment Income per share before reimbursement of fees by the
Investment Adviser were as follows:
Six Months Ended Years Ended December 31,
June 30, 1995 1994 1993 1992
------------------- ---- ----- -----
Select Growth and Income Fund $N/A $ N/A $0.023 $ 0.005
Select Income Fund 0.030 0.055 0.050 0.015
Money Market Fund N/A N/A 0.030 N/A
</TABLE>
44 See Notes to Financial Statements.
<PAGE>
ALLMERICA INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS-JUNE 30, 1995 (UNAUDITED)
1. ORGANIZATION
Allmerica Investment Trust (the "Trust"), formerly SMA Investment Trust, is
registered under the Investment Company Act of 1940, as amended, as an open-end,
diversified, management investment company established as a Massachusetts
business trust for the purpose of providing a vehicle for the investment of
assets of various separate accounts established by SMA Life Assurance Company, a
wholly-owned subsidiary of State Mutual Life Assurance Company of America
("State Mutual") or State Mutual Life Insurance Company (the "Companies"). As of
the date of this report, the Trust offered twelve managed investment portfolios.
The accompanying financial statements and financial highlights are those of the
Select International Equity, Select Aggressive Growth, Select Capital
Appreciation, Select Growth, Select Growth and Income, Select Income and Money
Market Funds (individually, a "Portfolio," collectively, the "Portfolios") only.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies which are in
conformity with generally accepted accounting principles consistently followed
by the Trust in the preparation of its financial statements.
SECURITY VALUATION: Securities which are traded on a recognized exchange
(including securities traded through the National Market System) are valued at
the last sale price on the securities exchange on which such securities are
primarily traded or, if there were no sales during the day, at the mean of the
closing bid and asking price. Over-the-counter securities that are not traded
through the National Market System are valued on the basis of the bid price at
the close of business on each day. Short-term investments that mature in 60 days
or less are valued at amortized cost. Corporate debt securities and debt
securities of the U.S. Government and its agencies (other than short-term
investments) are valued by an independent pricing service approved by the Board
of Trustees which utilizes market quotations and transactions, quotations from
dealers and various relationships among securities in determining value. If not
valued by a pricing service, such securities are valued at prices obtained from
independent brokers. Investments with prices that cannot be readily obtained, if
any, are carried at market value as determined in good faith under consistently
applied procedures established by and under the supervision of the Board of
Trustees. The investments of the Money Market Fund are valued utilizing the
amortized cost valuation method permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940. This method involves valuing a portfolio
security initially at its cost and thereafter assuming a constant amortization
to maturity of any discount or premium.
FORWARD FOREIGN CURRENCY CONTRACTS: The Select International Equity and Select
Capital Appreciation Funds may enter into forward foreign currency contracts
whereby the Portfolios agree to sell a specific currency at a specific price at
a future date in an attempt to hedge against fluctuations in the value of the
underlying currency of certain portfolio instruments. Forward foreign currency
contracts are valued at the daily exchange rate of the underlying currency.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented on a net basis in the
Statement of Assets and Liabilities. Gains or losses on the purchase or sale of
forward foreign currency contracts having the same settlement date and broker
are recognized on the date of offset, otherwise gains or losses are recognized
on the settlement date.
FOREIGN CURRENCY TRANSLATION: Investment valuations, other assets and
liabilities initially expressed as foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases and
sales of foreign investments and income and expenses are converted into U.S.
dollars based upon exchange rates prevailing on the respective dates of such
transactions. That portion of unrealized gains or losses on investments due to
fluctuations in foreign currency exchange rates is not separately disclosed.
45
<PAGE>
ALLMERICA INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED (UNAUDITED)
SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are recorded
on the trade date. Net realized gains and losses from security transactions are
recorded on the basis of identified cost. Interest income is recorded on the
accrual basis and consists of interest accrued and, if applicable, discount
earned less premiums amortized. Dividend income is recorded on the ex-dividend
date. Short-term gains of the Money Market Fund are included in interest
income.
DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income are declared
and reinvested daily for the Money Market Fund, declared and distributed
quarterly for the Select Growth and Income and Select Income Funds and annually
for the Select International Equity, Select Aggressive Growth, Select Capital
Appreciation and Select Growth Funds. All Portfolios with the exception of the
Money Market Fund declare and distribute, if any, all net realized capital gains
at least annually.
The amounts of income and capital gains to be distributed are determined in
accordance with income tax regulations. Such amounts may vary from income and
gains recognized in accordance with generally accepted accounting principles. As
such, reclassifications are made to the Portfolio's capital accounts as
necessary, so that they reflect income and gains available for distribution (or
available capital loss carryforwards) under income tax regulations.
FEDERAL INCOME TAXES: The Trust treats each Portfolio as a separate entity for
Federal income tax purposes. Each Portfolio of the Trust intends to continue to
qualify each year as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, each Portfolio will
not be subject to Federal income taxes to the extent it distributes all of its
taxable income and net realized gains for the tax year ending December 31. In
addition, by distributing during each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, each
Portfolio will not be subject to Federal excise tax. Therefore, no Federal
income tax provision is required. Withholding taxes on foreign dividend income
and gains have been paid or provided for in accordance with the applicable
country's tax rules and rates.
EXPENSES: The Trust accounts separately for assets, liabilities and operations
of each Portfolio. Expenses directly attributed to a Portfolio are charged to
the Portfolio, while expenses which are attributable to more than one Portfolio
of the Trust are allocated among the respective Portfolios.
FORWARD COMMITMENTS: Each Portfolio may from time to time purchase securities on
a forward commitment basis. Debt securities are often issued on this basis. The
yield of such securities is fixed at the time a commitment to purchase is made,
with actual payment and delivery of the security generally taking place 15 to 45
days later. During the period between purchase and settlement, typically no
payment is made by a Portfolio and no interest accrues to the Portfolio. The
market value of forward commitments may be more or less than the purchase price
payable at settlement date.
3. INVESTMENT ADVISORY, ADMINISTRATION AND OTHER RELATED PARTY TRANSACTIONS
Allmerica Investment Management Company, Inc., (the "Manager") a wholly-owned
subsidiary of State Mutual, serves as Investment Adviser to the Trust. Under the
terms of the management agreement, the Portfolios pay a management fee,
calculated daily and payable monthly, at an annual rate based upon the following
percentages of average daily net asset value: 1.00% for the Select International
Equity, the Select Aggressive Growth and the Select Capital Appreciation Funds,
0.85% for the Select Growth Fund, 0.75% for the Select Growth and Income Fund
and 0.60% for the Select Income Fund. For the Money Market Fund, the fee is
0.35% on net asset value on the first $50,000,000; 0.25% on the next
$200,000,000; and 0.20% on the remainder.
46
<PAGE>
ALLMERICA INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED (UNAUDITED)
The Manager has entered into Sub-Adviser Agreements for the management of
the investments of each of the Portfolios. The Manager is solely responsible
for the payment of all fees to the Sub-Advisers.
The Sub-Advisers for each of the Portfolios are as follows:
Select International Equity Bank of Ireland Asset Management Limited
Select Aggressive Growth Nicholas-Applegate Capital Management
Select Capital Appreciation Janus Capital Corporation
Select Growth Provident Investment Counsel
Select Growth and Income John A. Levin & Co., Inc.
Select Income Standish, Ayer & Wood, Inc.
Money Market Allmerica Asset Management, Inc.
Effective September 1, 1994, John A. Levin & Co., Inc. replaced Newbold's
Asset Management , Inc. as Sub-Adviser of the Select Growth and Income
Portfolio.
The Manager also has entered into an Administrative Services Agreement
with The Shareholder Services Group, Inc. ("TSSG"), a wholly-owned subsidiary
of First Data Corp., whereby TSSG performs administrative services for each of
the Portfolios and is entitled to receive an administrative fee and certain
out-of-pocket expenses. The Manager is solely responsible for the payment of
the administrative fee to TSSG.
In the event normal operating expenses of each Portfolio, excluding
taxes, interest, brokerage commissions and extraordinary expenses, but
including the advisory fee, exceed certain voluntary expense limitations
(Select International Equity Fund - 1.50%, Select Aggressive Growth and
Select Capital Appreciation Funds - 1.35%, Select Growth Fund - 1.20%, Select
Growth and Income Fund -1.10%, Select Income Fund-1.00% and Money Market Fund
- 0.60%), the Manager will either bear such expenses directly or reduce its
compensation from the Portfolios by the excess of the stated expense
limitations. Expense limitations may be removed or revised without prior
notice to existing shareholders. The Manager may voluntarily reimburse its
fees and any expenses in excess of the expense limitations.
For the six months ended June 30, 1995, the Investment Adviser
voluntarily agreed to reimburse the Portfolios as follows:
<TABLE>
<CAPTION>
Portfolio Reimbursement
------------------------------------------------------------
<S> <C>
Select Capital Appreciation $ 9,830
Select Income 2,547
</TABLE>
The Shareholder Services Group, Inc., doing business as 440 Financial ("440
Financial"), a wholly-owned subsidiary of First Data Corp., calculates net asset
value per share and maintains general accounting records for each Portfolio. For
these services, 440 Financial receives an annual fee based on Portfolio assets
and certain out-of- pocket expenses.
The Trust pays no salaries or compensation to any of its officers.
Trustees who are not directors, officers, or employees of the Trust or any
investment adviser are reimbursed for their travel expenses in attending
meetings of the Trustees, and receive quarterly meeting and retainer fees for
their services. Such amounts are paid by the Trust.
47
<PAGE>
ALLMERICA INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED (UNAUDITED)
4. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest for the Portfolios, each without a par
value.
5. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investment securities,
excluding short-term investments, for the six months ended June 30, 1995 were
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------------------------------------------------
PORTFOLIO OTHER GOVERNMENT OTHER GOVERNMENT
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Select International
Equity $26,915,178 $ -- $7,037,913 $ --
Select Aggressive
Growth 106,111,385 -- 74,566,605 --
Select Capital
Appreciation 9,214,308 -- 1,287,229 --
Select Growth 49,249,695 -- 23,985,784 --
Select Growth
and Income 88,165,725 -- 59,659,417 --
Select Income 6,732,468 35,096,257 8,039,465 28,011,290
</TABLE>
At June 30, 1995, aggregate gross unrealized appreciation for all
securities in
which there was an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
value were as follows:
<TABLE>
<CAPTION>
TAX BASIS
---------
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO APPRECIATION DEPRECIATION (DEPRECIATION) COST
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Select International $ 6,070,689 $ 2,074,037 $ 3,996,652 $63,965,410
Equity
Select Aggressive
Growth 46,976,477 4,451,804 42,524,673 150,124,761
Select Capital
Appreciation 1,046,547 93,664 952,883 10,110,378
Select Growth 25,291,297 1,095,727 24,195,570 99,606,580
Select Growth and
Income 16,142,574 3,355,407 12,787,167 138,563,693
Select Income 1,163,270 428,425 734,845 53,726,651
</TABLE>
48
<PAGE>
ALLMERICA INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS, CONTINUED (UNAUDITED)
6. CAPITAL LOSS CARRYFORWARD
As of December 31, 1994, certain Portfolios had capital loss carryforwards which
expire as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
PORTFOLIO 2000 2001 2002
-----------------------------------------------------------------------
<S> <C> <C> <C>
Select Aggressive Growth $ 18,976 $ 1,114,471 $ 8,096,147
Select Growth 7,651 247,191 2,115,070
Select Income -- -- 1,101,139
</TABLE>
7. FOREIGN SECURITIES
The Select International Equity Fund and the Select Capital Appreciation Fund
can purchase securities of foreign issuers. Investing in securities of foreign
issuers involves special risks not typically associated with investing in
securities of U.S. issuers. The risks include revaluation of currencies and
future adverse political and economic developments. Moreover, securities of
many foreign issuers and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. issuers.
8. FINANCIAL INSTRUMENTS
Investing in financial instruments such as the sales of forward foreign currency
contracts involves risk in excess of the amounts reflected in the Statement of
Assets and Liabilities. The face or contract amounts reflect the extent of the
involvement the Portfolio has in the instruments. Risks associated with these
instruments include an imperfect correlation between the movements in the price
of the instruments and the price of the underlying securities and interest
rates, an illiquid secondary market for the instruments or inability of
counterparties to perform under the terms of the contract and changes in the
value of currency relative to the U.S. dollar. The Select International Equity
Fund and the Select Capital Appreciation Fund enter into these contracts
primarily as a means to remain fully invested and reduce transaction costs.
49
<PAGE>
ALLMERICA SELECT LIFE
Allmerica Select Life is issued by SMA Life Assurance Company
and distributed by Allmerica Investments, Inc.
[ALLMERICA FINANCIAL LOGO]
Allmerica Investments, Inc.
440 Lincoln Street
Worcester, MA 01653
Printed on Recycled Paper
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 339,311,441
<INVESTMENTS-AT-VALUE> 396,671,475
<RECEIVABLES> 1,590,012
<ASSETS-OTHER> 369,229
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 398,630,716
<PAYABLE-FOR-SECURITIES> 2,339,594
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 576,477
<TOTAL-LIABILITIES> 2,916,071
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 319,308,633
<SHARES-COMMON-STOCK> 186,864,461
<SHARES-COMMON-PRIOR> 185,099,401
<ACCUMULATED-NII-CURRENT> 81,042
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 18,964,936
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 57,360,034
<NET-ASSETS> 395,714,645
<DIVIDEND-INCOME> 5,290,979
<INTEREST-INCOME> 159,467
<OTHER-INCOME> 0
<EXPENSES-NET> 1,001,952
<NET-INVESTMENT-INCOME> 4,448,494
<REALIZED-GAINS-CURRENT> 13,963,293
<APPREC-INCREASE-CURRENT> 42,304,311
<NET-CHANGE-FROM-OPS> 60,716,098
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,368,020
<DISTRIBUTIONS-OF-GAINS> 160,399
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 17,823,740
<NUMBER-OF-SHARES-REDEEMED> 18,538,787
<SHARES-REINVESTED> 4,528,420
<NET-CHANGE-IN-ASSETS> 60,001,052
<ACCUMULATED-NII-PRIOR> 568
<ACCUMULATED-GAINS-PRIOR> 5,162,042
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 841,263
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,001,952
<AVERAGE-NET-ASSETS> 363,277,014
<PER-SHARE-NAV-BEGIN> 1.814
<PER-SHARE-NII> 0.024
<PER-SHARE-GAIN-APPREC> 0.305
<PER-SHARE-DIVIDEND> 0.024
<PER-SHARE-DISTRIBUTIONS> 0.001
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 2.118
<EXPENSE-RATIO> 0.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INVESTMENT GRADE INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 121,861,563
<INVESTMENTS-AT-VALUE> 124,682,630
<RECEIVABLES> 10,779,925
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 135,462,555
<PAYABLE-FOR-SECURITIES> 8,730,816
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,280,291
<TOTAL-LIABILITIES> 10,011,107
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 125,319,848
<SHARES-COMMON-STOCK> 115,069,553
<SHARES-COMMON-PRIOR> 108,641,545
<ACCUMULATED-NII-CURRENT> 22,570
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 2,712,037
<ACCUM-APPREC-OR-DEPREC> 2,821,067
<NET-ASSETS> 125,451,448
<DIVIDEND-INCOME> 108,911
<INTEREST-INCOME> 4,188,763
<OTHER-INCOME> 0
<EXPENSES-NET> 320,293
<NET-INVESTMENT-INCOME> 3,977,381
<REALIZED-GAINS-CURRENT> 453,032
<APPREC-INCREASE-CURRENT> 8,151,400
<NET-CHANGE-FROM-OPS> 12,581,813
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,954,811
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,585,716
<NUMBER-OF-SHARES-REDEEMED> 6,687,995
<SHARES-REINVESTED> 3,954,811
<NET-CHANGE-IN-ASSETS> 15,479,534
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 3,165,069
<GROSS-ADVISORY-FEES> 241,220
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 320,293
<AVERAGE-NET-ASSETS> 117,553,760
<PER-SHARE-NAV-BEGIN> 1.012
<PER-SHARE-NII> 0.036
<PER-SHARE-GAIN-APPREC> 0.077
<PER-SHARE-DIVIDEND> 0.035
<PER-SHARE-DISTRIBUTIONS> 0.0
<RETURNS-OF-CAPITAL> 0.0
<PER-SHARE-NAV-END> 1.090
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 136,858,818
<INVESTMENTS-AT-VALUE> 136,858,818
<RECEIVABLES> 1,170,583
<ASSETS-OTHER> 64,814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 138,094,215
<PAYABLE-FOR-SECURITIES> 500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 150,189
<TOTAL-LIABILITIES> 650,189
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 137,444,184
<SHARES-COMMON-STOCK> 137,444,184
<SHARES-COMMON-PRIOR> 95,991,679
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 158
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 137,444,026
<DIVIDEND-INCOME> 165,614
<INTEREST-INCOME> 3,610,947
<OTHER-INCOME> 0
<EXPENSES-NET> 239,410
<NET-INVESTMENT-INCOME> 203,106
<REALIZED-GAINS-CURRENT> 189
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3,537,340
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,537,151
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 95,977,104
<NUMBER-OF-SHARES-REDEEMED> 58,061,750
<SHARES-REINVESTED> 3,537,151
<NET-CHANGE-IN-ASSETS> 41,452,694
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 347
<GROSS-ADVISORY-FEES> 178,816
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 239,410
<AVERAGE-NET-ASSETS> 124,238,173
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.028
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.028
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.39
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> EQUITY INDEX FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 55,215,759
<INVESTMENTS-AT-VALUE> 13,418,229
<RECEIVABLES> 173,252
<ASSETS-OTHER> 28,854
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 68,836,094
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79,591
<TOTAL-LIABILITIES> 79,591
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 60,379,921
<SHARES-COMMON-STOCK> 42,852,333
<SHARES-COMMON-PRIOR> 35,594,332
<ACCUMULATED-NII-CURRENT> 31,386
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5,073,033
<ACCUM-APPREC-OR-DEPREC> 13,418,229
<NET-ASSETS> 68,756,503
<DIVIDEND-INCOME> 786,166
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 178,923
<NET-INVESTMENT-INCOME> 607,243
<REALIZED-GAINS-CURRENT> 279,583
<APPREC-INCREASE-CURRENT> 9,810,092
<NET-CHANGE-FROM-OPS> 10,696,918
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 575,85768
<DISTRIBUTIONS-OF-GAINS> 5,326,012
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,087,254
<NUMBER-OF-SHARES-REDEEMED> 1,273,339
<SHARES-REINVESTED> 5,901,870
<NET-CHANGE-IN-ASSETS> 16,510,834
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 26,604
<GROSS-ADVISORY-FEES> 101,266
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 178,923
<AVERAGE-NET-ASSETS> 59,736,776
<PER-SHARE-NAV-BEGIN> 1.468
<PER-SHARE-NII> 0.016
<PER-SHARE-GAIN-APPREC> 0.270
<PER-SHARE-DIVIDEND> 0.015
<PER-SHARE-DISTRIBUTIONS> 0.135
<RETURNS-OF-CAPITAL> 0.0
<PER-SHARE-NAV-END> 1.604
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> GOVERNMENT BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 39,160,887
<INVESTMENTS-AT-VALUE> 39,251,852
<RECEIVABLES> 985,082
<ASSETS-OTHER> 6,177
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 40,243,111
<PAYABLE-FOR-SECURITIES> 442,159
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 76,274
<TOTAL-LIABILITIES> 518,433
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 41,655,148
<SHARES-COMMON-STOCK> 38,059,963
<SHARES-COMMON-PRIOR> 108,641,545
<ACCUMULATED-NII-CURRENT> 4,648
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 2,026,083
<ACCUM-APPREC-OR-DEPREC> 90,965
<NET-ASSETS> 39,724,678
<DIVIDEND-INCOME> 62,078
<INTEREST-INCOME> 1,268,945
<OTHER-INCOME> 0
<EXPENSES-NET> 142,579
<NET-INVESTMENT-INCOME> 1,188,444
<REALIZED-GAINS-CURRENT> (107,017)
<APPREC-INCREASE-CURRENT> 2,013,670
<NET-CHANGE-FROM-OPS> 3,095,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,183,796
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,929,547
<NUMBER-OF-SHARES-REDEEMED> 8,378,245
<SHARES-REINVESTED> 1,183,796
<NET-CHANGE-IN-ASSETS> (2,353,601)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 1,919,066
<GROSS-ADVISORY-FEES> 100,880
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 142,579
<AVERAGE-NET-ASSETS> 40,685,687
<PER-SHARE-NAV-BEGIN> 0.997
<PER-SHARE-NII> 0.031
<PER-SHARE-GAIN-APPREC> 0.047
<PER-SHARE-DIVIDEND> 0.031
<PER-SHARE-DISTRIBUTIONS> 0.0
<RETURNS-OF-CAPITAL> 0.0
<PER-SHARE-NAV-END> 1.044
<EXPENSE-RATIO> 0.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> SELECT GROWTH AND INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 138,563,693
<INVESTMENTS-AT-VALUE> 151,350,860
<RECEIVABLES> 380,194
<ASSETS-OTHER> 10,398
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 151,741,452
<PAYABLE-FOR-SECURITIES> 1,147,857
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 250,332
<TOTAL-LIABILITIES> 1,398,189
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 136,250,469
<SHARES-COMMON-STOCK> 128,911,531
<SHARES-COMMON-PRIOR> 107,287,213
<ACCUMULATED-NII-CURRENT> 15,455
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,300,172
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,787,167
<NET-ASSETS> 150,343,263
<DIVIDEND-INCOME> 1,581,680
<INTEREST-INCOME> 120,934
<OTHER-INCOME> 0
<EXPENSES-NET> 560,931
<NET-INVESTMENT-INCOME> 1,141,683
<REALIZED-GAINS-CURRENT> 1,983,609
<APPREC-INCREASE-CURRENT> 14,546,652
<NET-CHANGE-FROM-OPS> 17,671,944
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,126,536
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25,064,747
<NUMBER-OF-SHARES-REDEEMED> 2,605,929
<SHARES-REINVESTED> 2,605,929
<NET-CHANGE-IN-ASSETS> 40,130,762
<ACCUMULATED-NII-PRIOR> 308
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 683,437
<GROSS-ADVISORY-FEES> 478,173
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 560,931
<AVERAGE-NET-ASSETS> 128,569,432
<PER-SHARE-NAV-BEGIN> 1.027
<PER-SHARE-NII> 0.009
<PER-SHARE-GAIN-APPREC> 0.139
<PER-SHARE-DIVIDEND> 0.009
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.166
<EXPENSE-RATIO> 0.88
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> SELECT GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 99,606,580
<INVESTMENTS-AT-VALUE> 123,802,150
<RECEIVABLES> 1,239,939
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 125,042,089
<PAYABLE-FOR-SECURITIES> 3,001,690
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 187,112
<TOTAL-LIABILITIES> 3,188,802
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 102,576,194
<SHARES-COMMON-STOCK> 93,525,212
<SHARES-COMMON-PRIOR> 80,289,304
<ACCUMULATED-NII-CURRENT> 150,169
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5,068,646
<ACCUM-APPREC-OR-DEPREC> 24,195,570
<NET-ASSETS> 121,853,287
<DIVIDEND-INCOME> 471,664
<INTEREST-INCOME> 185,014
<OTHER-INCOME> 0
<EXPENSES-NET> 506,895
<NET-INVESTMENT-INCOME> 149,783
<REALIZED-GAINS-CURRENT> (1,366,118)
<APPREC-INCREASE-CURRENT> 19,355,404
<NET-CHANGE-FROM-OPS> 18,139,069
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 17,794,199
<NUMBER-OF-SHARES-REDEEMED> 2,343,255
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 33,590,013
<ACCUMULATED-NII-PRIOR> 386
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 3,702,528
<GROSS-ADVISORY-FEES> 428,096
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 506,895
<AVERAGE-NET-ASSETS> 101,563,296
<PER-SHARE-NAV-BEGIN> 1.099
<PER-SHARE-NII> 0.002
<PER-SHARE-GAIN-APPREC> 0.202
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.303
<EXPENSE-RATIO> 1.01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> SELECT AGGRESSIVE GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 150,124,761
<INVESTMENTS-AT-VALUE> 192,649,434
<RECEIVABLES> 1,604,170
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 194,253,604
<PAYABLE-FOR-SECURITIES> 2,301,181
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 521,163
<TOTAL-LIABILITIES> 2,822,344
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 162,924,292
<SHARES-COMMON-STOCK> 119,262,831
<SHARES-COMMON-PRIOR> 97,753,957
<ACCUMULATED-NII-CURRENT> 55,159
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 14,072,864
<ACCUM-APPREC-OR-DEPREC> 42,524,673
<NET-ASSETS> 191,431,260
<DIVIDEND-INCOME> 802,695
<INTEREST-INCOME> 135,561
<OTHER-INCOME> 0
<EXPENSES-NET> 883,097
<NET-INVESTMENT-INCOME> 55,159
<REALIZED-GAINS-CURRENT> (2,777,469)
<APPREC-INCREASE-CURRENT> 26,442,871
<NET-CHANGE-FROM-OPS> 23,720,561
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,779,881
<NUMBER-OF-SHARES-REDEEMED> 2,642,291
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 54,858,151
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 11,295,395
<GROSS-ADVISORY-FEES> 789,549
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 883,097
<AVERAGE-NET-ASSETS> 159,223,465
<PER-SHARE-NAV-BEGIN> 1.397
<PER-SHARE-NII> 0.000
<PER-SHARE-GAIN-APPREC> 0.208
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.605
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> SELECT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 53,726,651
<INVESTMENTS-AT-VALUE> 54,461,496
<RECEIVABLES> 1,238,243
<ASSETS-OTHER> 466
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 55,700,205
<PAYABLE-FOR-SECURITIES> 6,912,047
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 76,977
<TOTAL-LIABILITIES> 6,989,024
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 49,310,969
<SHARES-COMMON-STOCK> 48,920,894
<SHARES-COMMON-PRIOR> 43,864,660
<ACCUMULATED-NII-CURRENT> 5,688
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 1,340,321
<ACCUM-APPREC-OR-DEPREC> 734,845
<NET-ASSETS> 48,711,181
<DIVIDEND-INCOME> 65,345
<INTEREST-INCOME> 1,566,791
<OTHER-INCOME> 0
<EXPENSES-NET> 184,926
<NET-INVESTMENT-INCOME> 1,447,210
<REALIZED-GAINS-CURRENT> (92,958)
<APPREC-INCREASE-CURRENT> 3,120,626
<NET-CHANGE-FROM-OPS> 4,474,878
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,441,522
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,717,988
<NUMBER-OF-SHARES-REDEEMED> 6,265,777
<SHARES-REINVESTED> 1,441,522
<NET-CHANGE-IN-ASSETS> 7,927,089
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 1,247,363
<GROSS-ADVISORY-FEES> 136,132
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 187,473
<AVERAGE-NET-ASSETS> 45,423,311
<PER-SHARE-NAV-BEGIN> 0.930
<PER-SHARE-NII> 0.030
<PER-SHARE-GAIN-APPREC> 0.066
<PER-SHARE-DIVIDEND> 0.030
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 0.996
<EXPENSE-RATIO> 0.82
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> SMALL CAP VALUE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 49,057,182
<INVESTMENTS-AT-VALUE> 51,987,072
<RECEIVABLES> 90,131
<ASSETS-OTHER> 1,326,184
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53,403,387
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80,380
<TOTAL-LIABILITIES> 80,380
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 50,052,214
<SHARES-COMMON-STOCK> 44,921,665
<SHARES-COMMON-PRIOR> 42,312,627
<ACCUMULATED-NII-CURRENT> 203,106
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 137,797
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,929,890
<NET-ASSETS> 53,323,007
<DIVIDEND-INCOME> 450,396
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 247,290
<NET-INVESTMENT-INCOME> 203,106
<REALIZED-GAINS-CURRENT> 174,683
<APPREC-INCREASE-CURRENT> 3,864,128
<NET-CHANGE-FROM-OPS> 4,241,917
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,695,582
<NUMBER-OF-SHARES-REDEEMED> 2,955,995
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 11,981,504
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 36,886
<GROSS-ADVISORY-FEES> 200,359
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 247,290
<AVERAGE-NET-ASSETS> 47,534,063
<PER-SHARE-NAV-BEGIN> 1.089
<PER-SHARE-NII> 0.005
<PER-SHARE-GAIN-APPREC> 0.093
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.187
<EXPENSE-RATIO> 0.86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> SELECT INTERNATIONAL EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 63,965,410
<INVESTMENTS-AT-VALUE> 67,962,062
<RECEIVABLES> 15,376,774
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 83,338,836
<PAYABLE-FOR-SECURITIES> 3,492,702
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14,778,460
<TOTAL-LIABILITIES> 18,271,162
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 61,305,833
<SHARES-COMMON-STOCK> 61,664,924
<SHARES-COMMON-PRIOR> 42,039,186
<ACCUMULATED-NII-CURRENT> 577,764
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 383,559
<ACCUM-APPREC-OR-DEPREC> 3,567,636
<NET-ASSETS> 65,067,674
<DIVIDEND-INCOME> 904,706
<INTEREST-INCOME> 4,748
<OTHER-INCOME> 0
<EXPENSES-NET> 317,811
<NET-INVESTMENT-INCOME> 591,643
<REALIZED-GAINS-CURRENT> (542,578)
<APPREC-INCREASE-CURRENT> 5,010,990
<NET-CHANGE-FROM-OPS> 5,060,055
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 194
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,897,923
<NUMBER-OF-SHARES-REDEEMED> 3,388,110
<SHARES-REINVESTED> 194
<NET-CHANGE-IN-ASSETS> 24,569,868
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 159,213
<OVERDISTRIB-NII-PRIOR> 13,879
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 254,914
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 317,811
<AVERAGE-NET-ASSETS> 51,405,234
<PER-SHARE-NAV-BEGIN> 0.963
<PER-SHARE-NII> 0.010
<PER-SHARE-GAIN-APPREC> 0.082
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.055
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> SELECT CAPITAL APPRECIATION FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 10,110,378
<INVESTMENTS-AT-VALUE> 11,063,261
<RECEIVABLES> 785,487
<ASSETS-OTHER> 64,892
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,913,640
<PAYABLE-FOR-SECURITIES> 705,708
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 590,915
<TOTAL-LIABILITIES> 1,296,623
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,679,145
<SHARES-COMMON-STOCK> 9,366,205
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 10,101
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 11,568
<ACCUM-APPREC-OR-DEPREC> 939,339
<NET-ASSETS> 10,617,017
<DIVIDEND-INCOME> 5,244
<INTEREST-INCOME> 21,350
<OTHER-INCOME> 0
<EXPENSES-NET> 16,493
<NET-INVESTMENT-INCOME> 10,101
<REALIZED-GAINS-CURRENT> (11,568)
<APPREC-INCREASE-CURRENT> 939,339
<NET-CHANGE-FROM-OPS> 937,872
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,714,367
<NUMBER-OF-SHARES-REDEEMED> 35,222
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 10,617,017
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12,217
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,323
<AVERAGE-NET-ASSETS> 6,967,421
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.001
<PER-SHARE-GAIN-APPREC> 0.133
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.134
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
