Table of Contents
OMB Approval | ||||
OMB Number: 3235-0570 | ||||
Expires: January 31, 2014 | ||||
Estimated average burden hours per response: 20.6 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number: 811-05127
Advance Capital I, Inc.
(Exact name of registrant as specified in charter)
One Towne Square, Suite 444 | ||
Southfield, Michigan | 48076 | |
(Address of principal executive offices) | (Zip code) |
Robert J. Cappelli, President
Advance Capital I, Inc.
One Towne Square, Suite 444
Southfield, Michigan 48076
(Name and Address of agent for service)
Advance Capital I, Inc.
One Towne Square, Suite 444
Southfield, Michigan 48076
(Name and Address of agent for service)
Registrant’s telephone number, including area code: (248) 350-8543
Date of fiscal year end: December 31
Date of reporting period: June 30, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940(17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays current valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. 3507.
Table of Contents
Item 1. Annual Report to Shareholders.
AN INVESTMENT COMPANY
WITH FOUR FUNDS
WITH FOUR FUNDS
Semi-Annual Report
June 30, 2011
Table of Contents | ||||||||
1 | A Letter to Our Shareholders | |||||||
3 | ||||||||
11 | ||||||||
16 | ||||||||
24 | ||||||||
28 | ||||||||
30 | ||||||||
31 | ||||||||
32 | ||||||||
34 | ||||||||
39 | ||||||||
EX-99.CERT | ||||||||
EX-99.906CERT |
Advance Capital’s Pledge:
We understand that investing in any mutual fund is a leap of faith. We recognize that trust, integrity and honesty are just a few of the attributes you should expect from any financial organization. Our commitment to you is to hold true to these standards by putting your interests first at all times. We will work hard each and every day to provide you with quality service as well as our best long-term investment advice. We pledge to maintain the highest standards of TRUST, INTEGRITY & HONESTY in all of our dealings with you.
Sincerely,
Advance Capital I, Inc. Board of Directors, Management and Staff
Advance Capital I, Inc. Board of Directors, Management and Staff
Table of Contents
Dear Shareholders,
Six Month Review
Three years have passed since the onset of the global credit crisis and while the immediate effects have faded, the repercussions continue to impact economies around the world. Through the first half of the year, the developed economies of the world were stuck in a low growth, high unemployment environment while wrestling with mountains of debt and huge budget deficits. This precarious environment was further strained by the social uprising in the Middle East and the horrific tsunami which ravaged the coast of Japan and disrupted supply chains around the world. It is apparent that the path back to prosperity and fiscal sanity will take tough choices by our leaders and a collective sacrifice by all. Along the way, the capital markets and investor sentiment could become more volatile as a result.
On the economic front, the first half of the year brought lackluster growth and stubbornly high unemployment. The growth in the economy as measured by the Gross Domestic Product (GDP) averaged about 1.0 percent through June 30th, with a particularly weak second quarter. This soft patch appeared widespread as the major economic indicators, including industrial production, retail sales and housing data, pointed to subdued growth. Some of this weakness was attributable to the supply disruptions caused by the devastating earthquake in Japan on April 6th. Toward the end of June, factory activity rebounded as some of these problems cleared. The modest up-tick in manufacturing was overshadowed by the structural problems in the U.S. jobs market. The nation’s unemployment rate has hovered around 9.0 percent since the onset of the credit crisis in late 2008. Although initial jobless claims have moved considerably lower over the last few quarters, the structural employment problems appear persistent. The void left behind from the implosion of the housing sector, along with the shift to cheaper labor overseas, has left U.S workers searching for answers and scrambling for jobs.
Along the way, the economic pressure on consumers has been relentless. No surprise, they remain a bit cautious and short on discretionary spending. From apparel to auto sales, the consumer has pulled back amidst a dearth of jobs and rising commodity prices. Since consumer spending makes up 70 percent of economic growth, a healthy consumer is the key to reviving economic growth. Still, consumers have shown remarkable resiliency in weathering these pressures and with the employment picture expected to slowly improve in the year ahead, spending might rebound.
This uncertain environment is further complicated by excessive debt levels at the federal, state and individual levels. First, the federal government has hit the inflection point with deficit spending and partisan politics. Yet, the politicians find it nearly impossible to balance spending cuts with effective ways to raise revenues. True to form, the most likely scenario is temporary relief without concrete decisions or sacrifices. Future generations will have to bear the burden of repaying or restructuring our debt. For now, investors believe our deficits will moderate and our debt problems will somehow be solved. If brinksmanship trumps sound judgment and politics replaces common sense, investors might think twice and reduce risk and seek safer investments in the quarters and years ahead.
Capital Market Performance
In this modest growth environment, the capital markets turned in a very solid performance through the first six months. Through June, the S&P 500 Index returned 6.0 percent while the Nasdaq Composite returned 5.0 percent. In the S&P Index Education, Internet Software and Manufacturers turned in the best performance, while Household & Apparel, Airlines and Electrical Equipment were at the bottom. The first quarter brought optimism that growth would accelerate with modest inflation. The second quarter squashed this optimism as the effects from the Japanese earthquake disrupted supply chains which slowed growth in developed areas of the world.
1
Table of Contents
In the fixed income markets, investors remained perplexed as to the direction of interest rates and inflation. While commodity inflation pushed the inflation indicators higher, housing prices fell and wages stagnated. There remains a dichotomy between those that believe inflation is inevitable and those believing deflation is still possible. In this environment, treasury yields fell modestly as economic growth cooled and commodity prices retreated.
For the six month period ended June 30th, the Advance Capital I Equity Growth Fund increased 8.7 percent as compared to the Lipper Mid Cap Growth Index which returned 7.6 percent. The Balanced Fund, with its 60-40 mix of stocks and bonds posted a 5.7 percent increase, compared to the Lip-per Balanced Index which returned 4.7 percent. The Core Equity Fund increased 6.1 percent, compared to the S&P 500 Index which was up 6.0 percent. The Retirement Income Fund increased 3.3 percent, compared to the Morningstar Intermediate Bond average which returned 2.8 percent.
Remainder of the Year
The second half of the year has started with a leg down for stocks. With the recent downgrade of the U.S. debt by Standard & Poor’s and the wait for the “super committee” to set deficit reduction plans in motion along with heightened foreign debt problems, we will likely be challenged by increased volatility in the capital markets. Despite this volatility, the potential for growth to accelerate is not fully out of the picture if structural issues are addressed. First, the deep housing depression needs to abate. Although some progress has been made, home prices continue to decline and foreclosure rates remain very high across the income spectrum. Second, the employment picture needs to improve dramatically with higher paying, skilled jobs returning. Again, some progress has been made, but it is painfully slow. Lastly, the developed governments of the world must address their debt and deficit problems. The short-term fixes already enacted along with the mentality of pushing the tough decisions off to future generations and living beyond our means, is not a real solution.
These uncertain times have caused many individual investors to depart the equity markets which have in turn led to dramatic market swings on almost a daily basis. Fear can cause many to abandon tried and true investing principles and cause dislocations for stock markets in the short-term. We still see attractive stock market valuations, given the expectation that corporate earnings remain strong. Investors have few alternatives with short-term interest rates near zero and corporate bond yields in the low single digits. Those companies able to capitalize on global growth with proven management teams, consistent earnings and positive cash-flow should perform well. When many problems exist the opportunity for solutions and good news to spur market returns is the highest. We remain cautiously optimistic about the remainder of 2011.
As always, we remind investors to stay disciplined and focused on the long-term. We thank you for your continued confidence and look forward to providing you with service and results designed to meet or exceed your long term investment objectives. If you have questions or if we can be of service, please call. Our toll-free number is (800) 345-4783.
Robert J. Cappelli | Christopher M. Kostiz | |
President | President | |
Advance Capital I, Inc. | Advance Capital Management, Inc. |
2
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND (Retail Shares)
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
June 30, | Years ended December 31 | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net asset value, beginning of year | $ | 23.60 | $ | 18.52 | $ | 12.87 | $ | 24.11 | $ | 24.87 | $ | 25.42 | ||||||||||||
Income (Loss) from investment operationsa | ||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | 0.01 | 0.02 | 0.00 | (0.03 | ) | (0.03 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.08 | 5.08 | 5.66 | (11.22 | ) | 3.05 | 2.43 | |||||||||||||||||
Total from investment operations | 2.05 | 5.09 | 5.68 | (11.22 | ) | 3.02 | 2.40 | |||||||||||||||||
Less distributions | ||||||||||||||||||||||||
Net Investment Income | 0.00 | (0.01 | ) | (0.03 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||
Net realized gain on investments | 0.00 | 0.00 | 0.00 | (0.02 | ) | (3.78 | ) | (2.76 | ) | |||||||||||||||
Return of capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.19 | ) | |||||||||||||||||
Total distributions | 0.00 | (0.01 | ) | (0.03 | ) | (0.02 | ) | (3.78 | ) | (2.95 | ) | |||||||||||||
Net asset value, end of period | $ | 25.65 | $ | 23.60 | $ | 18.52 | $ | 12.87 | $ | 24.11 | $ | 24.87 | ||||||||||||
Total Return | 8.69 | %c | 27.49 | % | 44.14 | % | (46.53 | %) | 12.05 | % | 9.39 | % | ||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 107,006 | $ | 108,290 | $ | 98,960 | $ | 83,981 | $ | 220,726 | $ | 210,179 | ||||||||||||
Ratio of expenses to average net assets | 1.06 | %b | 1.07 | % | 1.13 | % | 1.06 | % | 1.01 | % | 1.01 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.25 | %)b | 0.05 | % | 0.12 | % | (0.02 | %) | (0.10 | %) | (0.10 | %) | ||||||||||||
Portfolio turnover rate | 23 | %c | 26 | % | 27 | % | 27 | % | 33 | % | 38 | % |
a | Per share amounts presented are based on average shares outstanding. | |
b | Annualized | |
c | Not Annualized |
See Notes to Financial Statements | 3 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND (Retail Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
June 30, | Years ended December 31 | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net asset value, beginning of year | $ | 15.83 | $ | 14.05 | $ | 11.80 | $ | 17.66 | $ | 18.38 | $ | 17.92 | ||||||||||||
Income (Loss) from investment operationsa | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.21 | 0.38 | 0.38 | 0.38 | 0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.85 | 1.89 | 2.25 | (5.84 | ) | 0.72 | 1.37 | |||||||||||||||||
Total from investment operations | 0.91 | 2.10 | 2.63 | (5.46 | ) | 1.10 | 1.76 | |||||||||||||||||
Less distributions | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.32 | ) | (0.38 | ) | (0.39 | ) | (0.38 | ) | (0.29 | ) | ||||||||||||
Net realized gain on investments | 0.00 | 0.00 | 0.00 | (0.01 | ) | (1.44 | ) | (0.90 | ) | |||||||||||||||
Return of capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.11 | ) | |||||||||||||||||
Total distributions | (0.12 | ) | (0.32 | ) | (0.38 | ) | (0.40 | ) | (1.82 | ) | (1.30 | ) | ||||||||||||
Net asset value, end of period | $ | 16.62 | $ | 15.83 | $ | 14.05 | $ | 11.80 | $ | 17.66 | $ | 18.38 | ||||||||||||
Total Return | 5.74 | %c | 15.19 | % | 22.79 | % | (31.33 | %) | 6.00 | % | 9.91 | % | ||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 179,900 | $ | 184,202 | $ | 189,125 | $ | 200,199 | $ | 400,214 | $ | 397,635 | ||||||||||||
Ratio of expenses to average net assets | 1.05 | %b | 1.06 | % | 1.12 | % | 1.04 | % | 0.97 | % | 0.93 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.71 | %b | 1.46 | % | 3.03 | % | 2.48 | % | 1.97 | % | 2.14 | % | ||||||||||||
Portfolio turnover rate | 26 | %c | 39 | % | 48 | % | 41 | % | 36 | % | 35 | % |
a | Per share amounts presented are based on average shares outstanding. | |
b | Annualized | |
c | Not Annualized |
4 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND (Retail Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
June 30, | Years ended December 31 | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net asset value, beginning of year | $ | 8.49 | $ | 8.23 | $ | 7.46 | $ | 9.45 | $ | 9.68 | $ | 9.85 | ||||||||||||
Income (Loss) from investment operationsa | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.32 | 0.45 | 0.52 | 0.54 | 0.54 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.18 | 0.36 | 0.79 | (1.98 | ) | (0.23 | ) | (0.16 | ) | |||||||||||||||
Total from investment operations | 0.28 | 0.68 | 1.24 | (1.46 | ) | 0.31 | 0.38 | |||||||||||||||||
Less distributions | ||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.42 | ) | (0.47 | ) | (0.53 | ) | (0.54 | ) | (0.54 | ) | ||||||||||||
Return of capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.01 | ) | |||||||||||||||||
Total distributions | (0.17 | ) | (0.42 | ) | (0.47 | ) | (0.53 | ) | (0.54 | ) | (0.55 | ) | ||||||||||||
Net asset value, end of period | $ | 8.60 | $ | 8.49 | $ | 8.23 | $ | 7.46 | $ | 9.45 | $ | 9.68 | ||||||||||||
Total Return | 3.34 | %c | 8.31 | % | 17.13 | % | (16.03 | %) | 3.33 | % | 3.97 | % | ||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 269,550 | $ | 292,167 | $ | 319,349 | $ | 340,834 | $ | 406,932 | $ | 402,076 | ||||||||||||
Ratio of expenses to average net assets | 0.84 | %b | 0.85 | % | 0.91 | % | 0.83 | % | 0.78 | % | 0.76 | % | ||||||||||||
Ratio of net investment income to average net assets | 2.43 | %b | 3.77 | % | 5.81 | % | 6.07 | % | 5.69 | % | 5.57 | % | ||||||||||||
Portfolio turnover rate | 25 | %c | 73 | % | 58 | % | 58 | % | 51 | % | 62 | % |
a | Per share amounts presented are based on average shares outstanding. | |
b | Annualized | |
c | Not Annualized |
See Notes to Financial Statements | 5 |
Table of Contents
ADVANCE CAPITAL I — CORE EQUITY FUND (Retail Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||
Six months | ||||||||||||||||
ended | ||||||||||||||||
June 30, | Years ended December 31 | |||||||||||||||
2011 | 2010 | 2009 | 2008 | |||||||||||||
Net asset value, beginning of year | $ | 9.79 | $ | 8.62 | $ | 6.51 | $ | 10.00 | ||||||||
Income (Loss) from investment operationsa | ||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.05 | 0.06 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.58 | 1.17 | 2.11 | (3.49 | ) | |||||||||||
Total from investment operations | 0.60 | 1.22 | 2.16 | (3.43 | ) | |||||||||||
Less distributions | ||||||||||||||||
Net investment income | 0.00 | (0.05 | ) | (0.05 | ) | (0.06 | ) | |||||||||
Total distributions | 0.00 | (0.05 | ) | (0.05 | ) | (0.06 | ) | |||||||||
Net asset value, end of period | $ | 10.39 | $ | 9.79 | $ | 8.62 | $ | 6.51 | ||||||||
Total Return | 6.13 | %c | 14.15 | % | 33.19 | % | (34.35 | %) | ||||||||
Ratios and Supplemental Data | ||||||||||||||||
Net assets, end of period (in thousands) | $ | 10,033 | $ | 10,671 | $ | 9,768 | $ | 8,469 | ||||||||
Ratio of expenses to average net assets | 1.37 | %b,d | 1.40 | %d | 1.44 | %d | 1.39 | %d | ||||||||
Ratio of expenses to average net assets | 1.27 | %b,e | 1.28 | %e | 1.31 | %e | 1.28 | %e | ||||||||
Ratio of net investment income to average net assets | 0.44 | %b | 0.54 | % | 0.66 | % | 0.66 | % | ||||||||
Portfolio turnover rate | 18 | %c | 36 | % | 33 | % | 68 | % |
a | Per share amounts presented are based on average shares outstanding. | |
b | Annualized | |
c | Not Annualized | |
d | Before waivers | |
e | Net of waivers |
6 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND (Institutional Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||||||||
ended | ||||||||||||||||||||||||||||||||
June 30, | Periods ended December 31 | |||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007a | ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 23.63 | $ | 18.49 | $ | 12.81 | $ | 24.16 | $ | 27.28 | ||||||||||||||||||||||
Income (Loss) from investment operationsb | ||||||||||||||||||||||||||||||||
Net investment Income | 0.01 | 0.06 | 0.06 | 0.06 | 0.02 | |||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.10 | 5.09 | 5.65 | (11.39 | ) | 0.64 | ||||||||||||||||||||||||||
Total from investment operations | 2.11 | 5.15 | 5.71 | (11.33 | ) | 0.66 | ||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||
Net investment Income | 0.00 | (0.01 | ) | (0.03 | ) | 0.00 | 0.00 | |||||||||||||||||||||||||
Net realized gain on investments | 0.00 | 0.00 | 0.00 | (0.02 | ) | (3.78 | ) | |||||||||||||||||||||||||
Total distributions | 0.00 | (0.01 | ) | (0.03 | ) | (0.02 | ) | (3.78 | ) | |||||||||||||||||||||||
Net asset value, end of period | $ | 25.74 | $ | 23.63 | $ | 18.49 | $ | 12.81 | $ | 24.16 | ||||||||||||||||||||||
Total Return | 8.93 | %d | 27.86 | % | 44.58 | % | (46.89 | %) | 2.34 | %d | ||||||||||||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,376 | $ | 180 | $ | 141 | $ | 92 | $ | 118 | ||||||||||||||||||||||
Ratio of expenses to average net assets | 0.82 | %c | 0.82 | % | 0.88 | % | 0.80 | % | 0.77 | %c | ||||||||||||||||||||||
Ratio of net investment income to average net assets | 0.08 | %c | 0.31 | % | 0.36 | % | 0.31 | % | 0.12 | %c | ||||||||||||||||||||||
Portfolio turnover rate | 23 | %d | 26 | % | 27 | % | 27 | % | 33 | % |
a | For the period May 4, 2007, commencement of operations, to December 31, 2007. | |
b | Per share amounts presented are based on average shares outstanding. | |
c | Annualized | |
d | Not Annualized |
See Notes to Financial Statements | 7 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND (Institutional Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||
Six months | ||||||||||||||||||||
ended | ||||||||||||||||||||
June 30, | Periods ended December 31 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007a | ||||||||||||||||
Net asset value, beginning of period | $ | 15.79 | $ | 14.01 | $ | 11.77 | $ | 17.66 | $ | 19.43 | ||||||||||
Income (Loss) from investment operationsb | ||||||||||||||||||||
Net investment Income | 0.08 | 0.25 | 0.41 | 0.42 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.84 | 1.89 | 2.24 | (5.87 | ) | (0.33 | ) | |||||||||||||
Total from investment operations | 0.92 | 2.14 | 2.65 | (5.45 | ) | (0.04 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
Net investment Income | (0.14 | ) | (0.36 | ) | (0.41 | ) | (0.43 | ) | (0.29 | ) | ||||||||||
Net realized gain on investments | 0.00 | 0.00 | 0.00 | (0.01 | ) | (1.44 | ) | |||||||||||||
Total distributions | (0.14 | ) | (0.36 | ) | (0.41 | ) | (0.44 | ) | (1.73 | ) | ||||||||||
Net asset value, end of period | $ | 16.57 | $ | 15.79 | $ | 14.01 | $ | 11.77 | $ | 17.66 | ||||||||||
Total Return | 5.82 | %d | 15.52 | % | 23.06 | % | (31.33 | %) | (0.22 | %)d | ||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 447 | $ | 157 | $ | 139 | $ | 117 | $ | 175 | ||||||||||
Ratio of expenses to average net assets | 0.81 | %c | 0.81 | % | 0.87 | % | 0.79 | % | 0.74 | %c | ||||||||||
Ratio of net investment income to average net assets | 0.97 | %c | 1.70 | % | 3.24 | % | 2.79 | % | 2.25 | %c | ||||||||||
Portfolio turnover rate | 26 | %d | 39 | % | 48 | % | 41 | % | 36 | % |
a | For the period May 4, 2007, commencement of operations, to December 31, 2007. | |
b | Per share amounts presented are based on average shares outstanding. | |
c | Annualized | |
d | Not Annualized |
8 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND (Institutional Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||||||
Six months | ||||||||||||||||||||
ended | ||||||||||||||||||||
June 30, | Periods ended December 31 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007a | ||||||||||||||||
Net asset value, beginning of period | $ | 8.48 | $ | 8.23 | $ | 7.46 | $ | 9.45 | $ | 9.71 | ||||||||||
Income (Loss) from investment operationsb | ||||||||||||||||||||
Net investment Income | 0.11 | 0.36 | 0.47 | 0.55 | 0.36 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.19 | 0.34 | 0.79 | (1.99 | ) | (0.25 | ) | |||||||||||||
Total from investment operations | 0.30 | 0.70 | 1.26 | (1.44 | ) | 0.11 | ||||||||||||||
Less distributions | ||||||||||||||||||||
Net investment Income | (0.18 | ) | (0.45 | ) | (0.49 | ) | (0.55 | ) | (0.37 | ) | ||||||||||
Total distributions | (0.18 | ) | (0.45 | ) | (0.49 | ) | (0.55 | ) | (0.37 | ) | ||||||||||
Net asset value, end of period | $ | 8.60 | $ | 8.48 | $ | 8.23 | $ | 7.46 | $ | 9.45 | ||||||||||
Total Return | 3.59 | %d | 8.45 | % | 17.42 | % | (15.82 | %) | 1.19 | %d | ||||||||||
�� | ||||||||||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 570 | $ | 562 | $ | 1,664 | $ | 1,841 | $ | 3,508 | ||||||||||
Ratio of expenses to average net assets | 0.60 | %c | 0.60 | % | 0.66 | % | 0.58 | % | 0.56 | %c | ||||||||||
Ratio of net investment income to average net assets | 2.68 | %c | 4.24 | % | 6.07 | % | 6.26 | % | 5.92 | %c | ||||||||||
Portfolio turnover rate | 25 | %d | 73 | % | 58 | % | 58 | % | 51 | % |
a | For the period May 4, 2007, commencement of operations, to December 31, 2007. | |
b | Per share amounts presented are based on average shares outstanding. | |
c | Annualized | |
d | Not Annualized |
See Notes to Financial Statements | 9 |
Table of Contents
ADVANCE CAPITAL I — CORE EQUITY FUND (Institutional Shares)
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
(For a Share Outstanding Throughout Each Period)
(For a Share Outstanding Throughout Each Period)
(Unaudited) | ||||||||||||||||
Six months | ||||||||||||||||
ended | ||||||||||||||||
June 30, | Years ended December 31 | |||||||||||||||
2011 | 2010 | 2009 | 2008 | |||||||||||||
Net asset value, beginning of period | $ | 9.87 | $ | 8.67 | $ | 6.51 | $ | 10.00 | ||||||||
Income (Loss) from investment operationsa | ||||||||||||||||
Net investment Income | 0.03 | 0.07 | 0.07 | 0.07 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.59 | 1.18 | 2.14 | (3.48 | ) | |||||||||||
Total from investment operations | 0.62 | 1.25 | 2.21 | (3.41 | ) | |||||||||||
Less distributions | ||||||||||||||||
Net investment Income | 0.00 | (0.05 | ) | (0.05 | ) | (0.08 | ) | |||||||||
Total distributions | 0.00 | (0.05 | ) | (0.05 | ) | (0.08 | ) | |||||||||
Net asset value, end of period | $ | 10.49 | $ | 9.87 | $ | 8.67 | $ | 6.51 | ||||||||
Total Return | 6.28 | %c | 14.41 | % | 33.95 | % | (34.14 | %) | ||||||||
Ratios and Supplemental Data | ||||||||||||||||
Net assets, end of period (in thousands) | $ | 640 | $ | 433 | $ | 379 | $ | 0 | d | |||||||
Ratio of expenses to average net assets | 1.13 | %b,e | 1.15 | %e | 1.17 | %e | 1.16 | %e | ||||||||
Ratio of expenses to average net assets | 1.02 | %b,f | 1.03 | %f | 1.04 | %f | 1.05 | %f | ||||||||
Ratio of net investment income to average net assets | 0.67 | %b | 0.79 | % | 0.89 | % | 0.79 | % | ||||||||
Portfolio turnover rate | 18 | %c | 36 | % | 33 | % | 68 | % |
a | Per share amounts presented are based on average shares outstanding. | |
b | Annualized | |
c | Not Annualized | |
d | Amount rounds to zero | |
e | Before waivers | |
f | Net of waivers |
10 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
Top Ten Holdings*
Cummins, Inc. | 1.18 | % | ||
FMC Technologies, Inc. | 0.96 | % | ||
AmerisourceBergen Corp. | 0.88 | % | ||
Western Union Co. | 0.81 | % | ||
Jones Lang LaSalle, Inc. | 0.79 | % | ||
Peabody Energy Corp. | 0.77 | % | ||
Compass Minerals | 0.77 | % | ||
Liberty Media Corp — Inter. | 0.77 | % | ||
Cameron International Corp. | 0.76 | % | ||
Nuance Communications | 0.75 | % |
* | Percentages based on Total Net Assets |
11
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
BASIC MATERIALS — 6.4% | ||||||||
Agnico-Eagle Mines Ltd | 3,300 | $ | 208,329 | |||||
Air Products & Chemicals | 2,000 | 191,160 | ||||||
Albemarle Corp. | 2,600 | 179,920 | ||||||
Carpenter Technology Corp. | 5,400 | 311,472 | ||||||
CF Industries Holdings, Inc. | 2,700 | 382,509 | ||||||
Cliffs Natural Resources, Inc. | 8,000 | 739,600 | ||||||
Compass Minerals | 9,700 | 834,879 | ||||||
Ecolab, Inc. | 3,800 | 214,244 | ||||||
Eldorado Gold Corp. | 28,400 | 418,616 | ||||||
HudBay Minerals, Inc. | 24,900 | 372,504 | ||||||
Intrepid Potash, Inc.* | 6,600 | 214,500 | ||||||
Osisko Mining Corp.* | 18,100 | 281,093 | ||||||
PPG Industries, Inc. | 3,000 | 272,370 | ||||||
Rockwood Holdings, Inc.* | 3,700 | 204,573 | ||||||
Sherwin-Williams Co. | 5,600 | 469,672 | ||||||
Sigma-Aldrich Corp. | 3,100 | 227,478 | ||||||
Sociedad Quimica — ADR | 9,000 | 582,480 | ||||||
Stillwater Mining Co.* | 10,100 | 222,301 | ||||||
Ternium SA — ADR | 5,600 | 165,368 | ||||||
United States Steel Corp. | 3,600 | 165,744 | ||||||
Vulcan Materials Co. | 8,400 | 323,652 | ||||||
COMMUNICATIONS 8.5% | ||||||||
Akamai Technologies, Inc.* | 4,100 | 129,027 | ||||||
Aruba Networks, Inc.* | 10,700 | 316,185 | ||||||
Central European Media* | 6,600 | 130,350 | ||||||
Ciena Corp.* | 12,000 | 220,560 | ||||||
Crown Castle International* | 17,900 | 730,141 | ||||||
CTC Media, Inc.* | 9,600 | 204,672 | ||||||
Ctrip.com International Ltd — ADR* | 8,100 | 348,948 | ||||||
Discovery Communications* | 18,300 | 668,865 | ||||||
Equinix, Inc.* | 1,800 | 181,836 | ||||||
F5 Networks, Inc.* | 2,500 | 275,625 | ||||||
Factset Research Systems | 3,000 | 306,960 | ||||||
JDS Uniphase Corp.* | 15,600 | 259,896 | ||||||
Juniper Networks, Inc.* | 15,900 | 500,850 | ||||||
Liberty Media Corp — Inter.* | 49,600 | 831,792 | ||||||
Liberty Media Corp — Starz* | 2,300 | 173,052 | ||||||
McGraw-Hill Cos., Inc. | 14,700 | 616,077 | ||||||
NII Holdings, Inc.* | 7,400 | 313,612 | ||||||
Omnicom Group, Inc. | 11,700 | 563,472 | ||||||
Pandora Media, Inc.* | 12,400 | 234,484 | ||||||
Polycom, Inc.* | 2,500 | 160,750 | ||||||
priceline.com, Inc.* | 400 | 204,772 | ||||||
Rackspace Hosting, Inc.* | 5,600 | 239,344 | ||||||
SBA Communications Corp.* | 13,500 | 515,565 | ||||||
Sina Corp.* | 4,600 | 478,860 | ||||||
TIBCO Software, Inc.* | 9,900 | 287,298 | ||||||
VeriSign, Inc.* | 5,300 | 177,338 | ||||||
WebMD Health Corp.* | 4,200 | 191,436 | ||||||
�� | ||||||||
CONSUMER, CYCLICAL — 15.4% | ||||||||
Advance Auto Parts, Inc. | 2,700 | 157,923 | ||||||
AutoZone, Inc.* | 1,000 | 294,850 | ||||||
Bed Bath & Beyond, Inc.* | 13,200 | 770,484 | ||||||
CarMax, Inc.* | 20,200 | 668,014 | ||||||
Chico’s FAS, Inc. | 11,900 | 181,237 | ||||||
Chipotle Mexican Grill, Inc.* | 1,200 | 369,828 | ||||||
Choice Hotels International | 10,200 | 340,272 | ||||||
Coach, Inc. | 4,600 | 294,078 | ||||||
Copa Holdings SA | 4,700 | 313,678 | ||||||
Copart, Inc.* | 4,000 | 186,400 | ||||||
Dick’s Sporting Goods, Inc.* | 6,900 | 265,305 | ||||||
Dollar General Corp.* | 10,200 | 345,678 | ||||||
Dollar Tree, Inc.* | 7,400 | 492,988 | ||||||
Fastenal Co. | 14,200 | 511,058 | ||||||
Fossil, Inc.* | 3,500 | 412,020 | ||||||
Gap, Inc. | 6,800 | 123,080 | ||||||
Guess? Inc. | 5,100 | 214,506 | ||||||
Hyatt Hotels Corp.* | 4,000 | 163,280 | ||||||
International Game Tech. | 15,400 | 270,732 | ||||||
Kohl’s Corp. | 8,100 | 405,081 | ||||||
Madison Square Garden Co.* | 10,325 | 284,247 | ||||||
Marriott International, Inc. | 21,280 | 755,227 | ||||||
Mattel, Inc. | 22,800 | 626,772 | ||||||
Men’s Wearhouse, Inc. | 5,337 | 179,857 | ||||||
O’Reilly Automotive, Inc.* | 9,600 | 628,896 | ||||||
PACCAR, Inc. | 4,300 | 219,687 | ||||||
Panera Bread Co.* | 3,000 | 376,980 | ||||||
PetSmart, Inc. | 7,000 | 317,590 | ||||||
Ross Stores, Inc. | 9,000 | 721,080 | ||||||
Royal Caribbean Cruises Ltd | 15,400 | 579,656 | ||||||
Skywest, Inc. | 14,300 | 215,358 | ||||||
Southwest Airlines Co. | 36,700 | 419,114 | ||||||
Staples, Inc. | 7,800 | 123,240 | ||||||
Starwood Hotels & Resorts | 12,600 | 706,104 | ||||||
Tiffany & Co. | 7,000 | 549,640 | ||||||
Tim Hortons, Inc. | 10,100 | 492,981 | ||||||
Toll Brothers, Inc.* | 12,800 | 265,472 | ||||||
Tractor Supply Co. | 3,400 | 227,392 | ||||||
TRW Automotive Holdings* | 3,400 | 200,702 | ||||||
Urban Outfitters, Inc.* | 10,000 | 281,500 |
12 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
CONSUMER, CYCLICAL — 15.4% (continued) | ||||||||
WABCO Holdings, Inc.* | 4,100 | $ | 283,146 | |||||
Williams-Sonoma, Inc. | 5,700 | 207,993 | ||||||
WMS Industries, Inc.* | 6,900 | 211,968 | ||||||
WW Grainger, Inc. | 3,800 | 583,870 | ||||||
Wynn Resorts Ltd | 3,100 | 444,974 | ||||||
CONSUMER, NON-CYCLICAL — 19.2% | ||||||||
Alexion Pharmaceuticals * | 11,400 | 536,142 | ||||||
American Reprographics* | 10,200 | 72,114 | ||||||
AmerisourceBergen Corp. | 23,000 | 952,200 | ||||||
Arthrocare Corp.* | 2,300 | 76,981 | ||||||
Avon Products, Inc. | 22,100 | 618,800 | ||||||
BioMarin Pharmaceutical* | 6,700 | 182,307 | ||||||
Brown-Forman Corp. | 4,625 | 345,441 | ||||||
Bruker Corp.* | 12,000 | 244,320 | ||||||
Campbell Soup Co. | 3,900 | 134,745 | ||||||
Catalyst Health Solutions* | 6,000 | 334,920 | ||||||
Charles River Laboratories* | 2,900 | 117,885 | ||||||
Church & Dwight Co., Inc. | 9,800 | 397,292 | ||||||
CIGNA Corp. | 3,800 | 195,434 | ||||||
Clorox Co. | 4,300 | 289,992 | ||||||
Community Health Systems* | 6,600 | 169,488 | ||||||
Corporate Executive Board | 3,800 | 165,870 | ||||||
Covance, Inc.* | 3,600 | 213,732 | ||||||
CR Bard, Inc. | 5,100 | 560,286 | ||||||
DaVita, Inc.* | 5,100 | 441,711 | ||||||
Dendreon Corp.* | 11,500 | 453,560 | ||||||
DENTSPLY International, Inc. | 6,700 | 255,136 | ||||||
Edwards Lifesciences Corp.* | 3,900 | 340,002 | ||||||
Equifax, Inc. | 4,300 | 149,296 | ||||||
Genpact Ltd* | 8,900 | 153,436 | ||||||
Gen-Probe, Inc.* | 2,300 | 159,045 | ||||||
Global Payments, Inc. | 2,800 | 142,800 | ||||||
Green Dot Corp.* | 8,500 | 288,830 | ||||||
Henry Schein, Inc.* | 5,500 | 393,745 | ||||||
Hershey Co. | 5,400 | 306,990 | ||||||
Hertz Global Holdings, Inc.* | 11,800 | 187,384 | ||||||
Hologic, Inc.* | 10,100 | 203,717 | ||||||
Human Genome Sciences* | 13,000 | 319,020 | ||||||
Humana, Inc. | 2,200 | 177,188 | ||||||
IDEXX Laboratories, Inc.* | 5,900 | 457,604 | ||||||
Illumina, Inc.* | 5,500 | 413,325 | ||||||
Incyte Corp Ltd* | 14,700 | 278,418 | ||||||
Intuitive Surgical, Inc.* | 700 | 260,477 | ||||||
Iron Mountain, Inc. | 5,500 | 187,495 | ||||||
JM Smucker Co. | 2,300 | 175,812 | ||||||
Laboratory Corp of America* | 3,900 | 377,481 | ||||||
Life Technologies Corp.* | 3,500 | 182,245 | ||||||
Lorillard, Inc. | 1,400 | 152,418 | ||||||
Manpower, Inc. | 3,200 | 171,680 | ||||||
Masimo Corp.* | 4,500 | 133,560 | ||||||
McCormick & Co., Inc. | 4,800 | 237,936 | ||||||
Mead Johnson Nutrition Co. | 2,600 | 175,630 | ||||||
Mednax, Inc.* | 3,000 | 216,570 | ||||||
Moody’s Corp. | 12,800 | 490,880 | ||||||
Myriad Genetics, Inc.* | 7,200 | 163,512 | ||||||
New Oriental Education — ADR* | 1,500 | 167,580 | ||||||
Patterson Cos., Inc. | 4,700 | 154,583 | ||||||
Paychex, Inc. | 17,187 | 527,985 | ||||||
Quanta Services, Inc.* | 8,100 | 163,620 | ||||||
Quest Diagnostics, Inc. | 9,422 | 556,840 | ||||||
Regeneron Pharmaceuticals* | 8,200 | 465,022 | ||||||
ResMed, Inc.* | 5,400 | 167,130 | ||||||
Ritchie Bros Auctioneers | 6,400 | 175,936 | ||||||
Robert Half International | 10,500 | 283,815 | ||||||
SEI Investments Co. | 7,800 | 175,578 | ||||||
Strayer Education, Inc. | 1,100 | 139,029 | ||||||
SXC Health Solutions Corp.* | 6,600 | 388,872 | ||||||
Techne Corp. | 2,600 | 216,762 | ||||||
Thoratec Corp.* | 5,500 | 180,510 | ||||||
Universal Health Services | 4,100 | 211,273 | ||||||
Valeant Pharmaceuticals* | 6,400 | 332,544 | ||||||
Varian Medical Systems, Inc.* | 4,600 | 322,092 | ||||||
Verisk Analytics, Inc.* | 6,200 | 214,644 | ||||||
Vertex Pharmaceuticals, Inc.* | 10,070 | 523,539 | ||||||
VistaPrint NV* | 3,400 | 162,690 | ||||||
Western Union Co. | 43,600 | 873,308 | ||||||
Whole Foods Market, Inc. | 8,600 | 545,670 | ||||||
Zimmer Holdings, Inc.* | 2,400 | 151,680 | ||||||
ENERGY — 9.7% | ||||||||
Arch Coal, Inc. | 17,797 | 474,468 | ||||||
Cameron International Corp.* | 16,300 | 819,727 | ||||||
Cimarex Energy Co. | 2,900 | 260,768 | ||||||
Concho Resources, Inc.* | 7,900 | 725,615 | ||||||
Continental Resources, Inc.* | 5,600 | 363,496 | ||||||
Core Laboratories | 4,000 | 446,160 | ||||||
Diamond Offshore Drilling | 4,700 | 330,927 | ||||||
Dresser-Rand Group, Inc.* | 3,200 | 172,000 | ||||||
Dril-Quip, Inc.* | 2,400 | 162,792 | ||||||
EQT Corp. | 9,300 | 488,436 | ||||||
First Solar, Inc.* | 4,000 | 529,080 |
See Notes to Financial Statements | 13 |
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
ENERGY — 9.7% (continued) | ||||||||
FMC Technologies, Inc.* | 23,200 | $ | 1,039,128 | |||||
Forest Oil Corp.* | 5,700 | 152,247 | ||||||
Kosmos Energy Ltd* | 9,800 | 166,404 | ||||||
Murphy Oil Corp. | 2,700 | 177,282 | ||||||
Nabors Industries Ltd* | 11,400 | 280,896 | ||||||
Newfield Exploration Co.* | 2,600 | 176,852 | ||||||
Oceaneering International | 10,000 | 405,000 | ||||||
Peabody Energy Corp. | 14,200 | 836,522 | ||||||
QEP Resources, Inc. | 6,700 | 280,261 | ||||||
Quicksilver Resources, Inc.* | 15,700 | 231,732 | ||||||
Range Resources Corp. | 13,200 | 732,600 | ||||||
SM Energy Co. | 3,400 | 249,832 | ||||||
Southwestern Energy Co.* | 5,900 | 252,992 | ||||||
Tetra Technologies, Inc.* | 8,500 | 108,205 | ||||||
Ultra Petroleum Corp.* | 3,500 | 160,300 | ||||||
Walter Energy, Inc. | 3,900 | 451,620 | ||||||
FINANCIAL — 7.5% | ||||||||
Air Lease Corp.* | 6,800 | 165,172 | ||||||
Arch Capital Group Ltd* | 4,500 | 143,640 | ||||||
Axis Capital Holdings Ltd | 5,700 | 176,472 | ||||||
BankUnited, Inc. | 5,800 | 153,932 | ||||||
Brown & Brown, Inc. | 22,100 | 567,086 | ||||||
CBOE Holdings, Inc. | 12,600 | 309,960 | ||||||
City National Corp. | 2,500 | 135,625 | ||||||
Eaton Vance Corp. | 10,700 | 323,461 | ||||||
Fifth Third Bancorp | 13,200 | 168,300 | ||||||
First Horizon National Corp. | �� | 16,739 | 159,690 | |||||
Forest City Enterprises, Inc.* | 14,400 | 268,848 | ||||||
HCC Insurance Holdings, Inc. | 8,500 | 267,750 | ||||||
IntercontinentalExchange* | 5,300 | 660,963 | ||||||
Invesco Ltd | 23,900 | 559,260 | ||||||
Janus Capital Group, Inc. | 14,600 | 137,824 | ||||||
Jones Lang LaSalle, Inc. | 9,100 | 858,130 | ||||||
Lazard Ltd | 9,600 | 356,160 | ||||||
Northern Trust Corp. | 7,600 | 349,296 | ||||||
NYSE Euronext | 4,300 | 147,361 | ||||||
Popular, Inc.* | 54,599 | 150,693 | ||||||
Principal Financial Group | 5,700 | 173,394 | ||||||
Regions Financial Corp. | 20,800 | 128,960 | ||||||
RenaissanceRe Holdings Ltd | 2,600 | 181,870 | ||||||
SLM Corp. | 8,600 | 144,566 | ||||||
SVB Financial Group* | 3,100 | 185,101 | ||||||
TCF Financial Corp. | 12,900 | 178,020 | ||||||
TD Ameritrade Holding | 21,500 | 419,465 | ||||||
Waddell & Reed Financial | 4,600 | 167,210 | ||||||
Willis Group Holdings PLC | 4,200 | 172,662 | ||||||
WR Berkley Corp. | 4,100 | 133,004 | ||||||
Zions Bancorporation | 7,000 | 168,070 | ||||||
INDUSTRIAL — 15.7% | ||||||||
AMETEK, Inc. | 8,650 | 388,385 | ||||||
Amphenol, Corp. | 8,700 | 469,713 | ||||||
Babcock & Wilcox Co.* | 12,250 | 339,448 | ||||||
CH Robinson Worldwide | 9,500 | 748,980 | ||||||
CLARCOR, Inc. | 3,900 | 184,392 | ||||||
Clean Harbors, Inc.* | 1,900 | 196,175 | ||||||
Cooper Industries PLC | 10,500 | 626,535 | ||||||
Cummins, Inc. | 12,400 | 1,283,276 | ||||||
Dolby Laboratories, Inc.* | 9,100 | 386,386 | ||||||
Donaldson Co., Inc. | 5,300 | 321,604 | ||||||
Elbit Systems Ltd | 2,900 | 138,852 | ||||||
Embraer SA — ADR* | 10,700 | 329,346 | ||||||
Expeditors International | 12,500 | 639,875 | ||||||
Flowserve Corp. | 2,400 | 263,736 | ||||||
Fluor Corp. | 9,500 | 614,270 | ||||||
Foster Wheeler AG* | 5,200 | 157,976 | ||||||
General Cable Corp.* | 6,300 | 268,254 | ||||||
Gentex Corp. | 12,700 | 383,921 | ||||||
Goodrich Corp. | 6,100 | 582,550 | ||||||
Graco, Inc. | 5,300 | 268,498 | ||||||
Harsco Corp. | 5,000 | 163,000 | ||||||
Hubbell, Inc. | 5,600 | 363,720 | ||||||
IDEX Corp. | 3,725 | 170,791 | ||||||
II-VI, Inc.* | 8,000 | 204,800 | ||||||
Itron, Inc.* | 2,200 | 105,952 | ||||||
Jabil Circuit, Inc. | 12,500 | 252,500 | ||||||
Joy Global, Inc. | 7,800 | 742,872 | ||||||
Kansas City Southern* | 9,600 | 569,568 | ||||||
Landstar System, Inc. | 8,600 | 399,728 | ||||||
McDermott International* | 18,900 | 374,409 | ||||||
Mettler-Toledo International* | 2,400 | 404,808 | ||||||
National Instruments Corp. | 6,975 | 207,158 | ||||||
Pall Corp. | 5,100 | 286,773 | ||||||
Precision Castparts Corp. | 1,100 | 181,115 | ||||||
Republic Services, Inc. | 9,650 | 297,703 | ||||||
Rockwell Automation, Inc. | 2,100 | 182,196 | ||||||
Rockwell Collins, Inc. | 5,500 | 339,295 | ||||||
Roper Industries, Inc. | 6,800 | 566,440 | ||||||
Stericycle, Inc.* | 2,500 | 222,800 | ||||||
Terex Corp.* | 5,500 | 156,475 | ||||||
TransDigm Group, Inc.* | 2,400 | 218,856 |
14 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock and | ||||||||
Short-Term Investments | Shares | Value | ||||||
INDUSTRIAL — 15.7% (continued) | ||||||||
Trimble Navigation Ltd* | 15,700 | $ | 622,348 | |||||
Valmont Industries, Inc. | 3,700 | 356,643 | ||||||
Wabtec Corp. | 4,100 | 269,452 | ||||||
Waste Connections, Inc. | 6,650 | 211,005 | ||||||
Waters Corp.* | 4,200 | 402,108 | ||||||
Zebra Technologies Corp.* | 4,400 | 185,548 | ||||||
TECHNOLOGY — 16.0% | ||||||||
Adobe Systems, Inc.* | 11,100 | 349,095 | ||||||
Allscripts Healthcare* | 18,800 | 365,096 | ||||||
Altera Corp. | 12,400 | 574,740 | ||||||
Analog Devices, Inc. | 14,500 | 567,530 | ||||||
ANSYS, Inc.* | 8,200 | 448,294 | ||||||
Ariba, Inc.* | 6,200 | 213,714 | ||||||
ARM Holdings PLC — ADR | 10,300 | 292,829 | ||||||
Atmel Corp.* | 38,100 | 536,067 | ||||||
Autodesk, Inc.* | 15,500 | 598,300 | ||||||
BMC Software, Inc.* | 8,100 | 443,070 | ||||||
Cerner Corp.* | 6,800 | 415,548 | ||||||
Check Point Software* | 8,100 | 460,485 | ||||||
Citrix Systems, Inc.* | 6,300 | 504,000 | ||||||
Computer Sciences Corp. | 2,600 | 98,696 | ||||||
Concur Technologies, Inc.* | 7,100 | 355,497 | ||||||
Dun & Bradstreet Corp. | 1,900 | 143,526 | ||||||
Electronic Arts, Inc.* | 5,400 | 127,440 | ||||||
Fidelity National | 3,442 | 105,979 | ||||||
Fortinet, Inc.* | 7,800 | 212,862 | ||||||
GT Solar International, Inc.* | 9,600 | 155,520 | ||||||
Informatica Corp.* | 7,600 | 444,068 | ||||||
Intersil Corp. | 10,000 | 128,500 | ||||||
Intuit, Inc.* | 11,200 | 580,832 | ||||||
KLA-Tencor Corp. | 3,500 | 141,680 | ||||||
Lam Research Corp.* | 10,200 | 451,656 | ||||||
Linear Technology Corp. | 17,000 | 561,340 | ||||||
Logitech International SA* | 9,600 | 107,904 | ||||||
Marvell Technology Group* | 40,800 | 602,616 | ||||||
Maxim Integrated Products | 8,800 | 224,928 | ||||||
MEMC Electronic Materials* | 10,600 | 90,418 | ||||||
Microchip Technology, Inc. | 10,557 | 400,216 | ||||||
MICROS Systems, Inc.* | 5,600 | 278,376 | ||||||
MSCI, Inc.* | 12,900 | 486,072 | ||||||
NetApp, Inc.* | 4,700 | 248,066 | ||||||
Nuance Communications* | 37,800 | 811,566 | ||||||
NVIDIA Corp.* | 31,400 | 500,516 | ||||||
ON Semiconductor Corp.* | 23,100 | 241,857 | ||||||
QLogic Corp.* | 15,400 | 245,168 | ||||||
Red Hat, Inc.* | 12,400 | 569,160 | ||||||
Rovi Corp.* | 9,300 | 533,448 | ||||||
Salesforce.com, Inc.* | 1,200 | 178,776 | ||||||
Seagate Technology PLC | 11,000 | 177,760 | ||||||
Silicon Laboratories, Inc.* | 8,800 | 363,088 | ||||||
Skyworks Solutions, Inc.* | 11,400 | 261,972 | ||||||
Solera Holdings, Inc. | 4,500 | 266,220 | ||||||
Teradata Corp.* | 8,500 | 511,700 | ||||||
TriQuint Semiconductor* | 18,300 | 186,477 | ||||||
Xilinx, Inc. | 21,100 | 769,516 | ||||||
UTILITIES — 0.5% | ||||||||
Calpine Corp.* | 22,300 | 359,699 | ||||||
NRG Energy, Inc.* | 7,100 | 174,518 | ||||||
TOTAL COMMON STOCK — 98.9% (Cost $84,141,716) | 107,187,646 | |||||||
SHORT-TERM INVESTMENTS — 0.1% | ||||||||
Fifth Third Inst. Money Mkt Fund, 0.01% Yield (Cost $104,924) | 104,924 | |||||||
TOTAL INVESTMENTS IN SECURITIES — 99.0% (Cost $84,246,640) | 107,292,570 | |||||||
OTHER ASSETS LESS LIABILITIES — 1.0% | 1,089,466 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 108,382,036 | ||||||
* | Securities are non-income producing | |
ADR — | American Depository Receipt |
See Notes to Financial Statements | 15 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
Top Equity Holdings*
Chevron Corp. | 1.29 | % | ||
JPMorgan Chase & Co. | 0.99 | % | ||
Wells Fargo & Co. | 0.80 | % | ||
Exxon Mobil Corp. | 0.77 | % | ||
Occidental Petroleum Corp. | 0.74 | % |
Top Fixed Income Holdings*
Michigan Bell Telephone Co. 7.850% 2022 | 1.36 | % | ||
Consumers Energy Co. 6.700% 2019 | 1.33 | % | ||
Comcast Corp. 5.850% 2015 | 1.26 | % | ||
Total Capital 2.300% 2016 | 1.11 | % | ||
Barrick Gold Corp. 6.950% 2019 | 0.99 | % |
* | Percentages based on Total Net Assets |
16
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
BASIC MATERIALS — 4.1% | ||||||||
Agnico-Eagle Mines Ltd | 4,900 | $ | 309,337 | |||||
Air Products & Chemicals | 4,900 | 468,342 | ||||||
Albemarle Corp. | 700 | 48,440 | ||||||
BHP Billiton Ltd — ADR | 4,000 | 378,520 | ||||||
Carpenter Technology Corp. | 7,000 | 403,760 | ||||||
CF Industries Holdings, Inc. | 1,000 | 141,670 | ||||||
Cliffs Natural Resources, Inc. | 2,600 | 240,370 | ||||||
Compass Minerals | 2,800 | 240,996 | ||||||
Ecolab, Inc. | 1,200 | 67,656 | ||||||
Eldorado Gold Corp. | 24,500 | 361,130 | ||||||
Freeport-McMoRan Copper | 8,800 | 465,520 | ||||||
HudBay Minerals, Inc. | 8,800 | 131,648 | ||||||
Intrepid Potash, Inc.* | 2,000 | 65,000 | ||||||
Monsanto Co. | 4,400 | 319,176 | ||||||
Nucor Corp. | 6,500 | 267,930 | ||||||
Osisko Mining Corp.* | 6,000 | 93,180 | ||||||
Potash Corp. | 6,900 | 393,231 | ||||||
PPG Industries, Inc. | 4,000 | 363,160 | ||||||
Praxair, Inc. | 2,600 | 281,814 | ||||||
Rio Tinto PLC — ADR | 4,200 | 303,744 | ||||||
Rockwood Holdings, Inc.* | 1,200 | 66,348 | ||||||
Sherwin-Williams Co. | 5,500 | 461,285 | ||||||
Sigma-Aldrich Corp. | 900 | 66,042 | ||||||
Sociedad Quimica — ADR | 7,100 | 459,512 | ||||||
Stillwater Mining Co.* | 3,400 | 74,834 | ||||||
Ternium SA — ADR | 10,500 | 310,065 | ||||||
United States Steel Corp. | 1,100 | 50,644 | ||||||
Vale SA — ADR* | 8,600 | 274,770 | ||||||
Vulcan Materials Co. | 8,700 | 335,211 | ||||||
COMMUNICATIONS — 4.1% | ||||||||
Akamai Technologies, Inc.* | 1,700 | 53,499 | ||||||
Aruba Networks, Inc.* | 3,500 | 103,425 | ||||||
AT&T, Inc. | 26,100 | 819,801 | ||||||
Central European Media* | 1,900 | 37,525 | ||||||
Ciena Corp.* | 3,900 | 71,682 | ||||||
Crown Castle International* | 5,700 | 232,503 | ||||||
CTC Media, Inc.* | 4,000 | 85,280 | ||||||
Ctrip.com International Ltd — ADR* | 2,600 | 112,008 | ||||||
Discovery Communications* | 6,000 | 219,300 | ||||||
Equinix, Inc.* | 600 | 60,612 | ||||||
F5 Networks, Inc.* | 800 | 88,200 | ||||||
Factset Research Systems | 800 | 81,856 | ||||||
Google, Inc.* | 500 | 253,190 | ||||||
JDS Uniphase Corp.* | 4,800 | 79,968 | ||||||
Juniper Networks, Inc.* | 5,500 | 173,250 | ||||||
Liberty Media Corp — Inter.* | 42,300 | 709,371 | ||||||
Liberty Media Corp — Starz* | 600 | 45,144 | ||||||
McGraw-Hill Cos., Inc. | 13,700 | 574,167 | ||||||
NII Holdings, Inc.* | 2,800 | 118,664 | ||||||
Omnicom Group, Inc. | 13,000 | 626,080 | ||||||
Pandora Media, Inc.* | 4,100 | 77,531 | ||||||
Polycom, Inc.* | 1,000 | 64,300 | ||||||
priceline.com, Inc.* | 100 | 51,193 | ||||||
Rackspace Hosting, Inc.* | 1,900 | 81,206 | ||||||
SBA Communications Corp.* | 4,200 | 160,398 | ||||||
Sina Corp.* | 1,600 | 166,560 | ||||||
TIBCO Software, Inc.* | 3,200 | 92,864 | ||||||
Time Warner Cable, Inc. | 3,400 | 265,336 | ||||||
Time Warner, Inc. | 17,866 | 649,786 | ||||||
VeriSign, Inc.* | 1,500 | 50,190 | ||||||
Walt Disney Co. | 28,800 | 1,124,352 | ||||||
WebMD Health Corp.* | 1,300 | 59,254 | ||||||
CONSUMER, CYCLICAL — 7.2% | ||||||||
Advance Auto Parts, Inc. | 800 | 46,792 | ||||||
AutoZone, Inc.* | 400 | 117,940 | ||||||
Bed Bath & Beyond, Inc.* | 4,500 | 262,665 | ||||||
CarMax, Inc.* | 7,100 | 234,797 | ||||||
Carnival Corp. | 16,100 | 605,843 | ||||||
Chico’s FAS, Inc. | 3,800 | 57,874 | ||||||
Chipotle Mexican Grill, Inc.* | 400 | 123,276 | ||||||
Choice Hotels International | 3,400 | 113,424 | ||||||
Coach, Inc. | 1,500 | 95,895 | ||||||
Copa Holdings SA | 1,500 | 100,110 | ||||||
Copart, Inc.* | 1,200 | 55,920 | ||||||
CVS Caremark Corp. | 14,600 | 548,668 | ||||||
Dick’s Sporting Goods, Inc.* | 2,200 | 84,590 | ||||||
Dollar General Corp.* | 2,500 | 84,725 | ||||||
Dollar Tree, Inc.* | 2,250 | 149,895 | ||||||
Fastenal Co. | 4,500 | 161,955 | ||||||
Fossil, Inc.* | 1,200 | 141,264 | ||||||
Gap, Inc. | 14,400 | 260,640 | ||||||
General Motors Co.* | 5,700 | 173,052 | ||||||
Guess? Inc. | 2,100 | 88,326 | ||||||
Home Depot, Inc. | 27,200 | 985,184 | ||||||
Hyatt Hotels Corp.* | 1,200 | 48,984 | ||||||
International Game Tech. | 20,400 | 358,632 | ||||||
Kohl’s Corp. | 11,500 | 575,115 | ||||||
Lennar Corp. | 16,000 | 290,400 | ||||||
Madison Square Garden Co.* | 3,300 | 90,849 | ||||||
Marriott International, Inc. | 6,775 | 240,445 | ||||||
Mattel, Inc. | 23,300 | 640,517 | ||||||
McDonald’s Corp. | 8,500 | 716,720 |
See Notes to Financial Statements | 17 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
CONSUMER, CYCLICAL — 7.2% (continued) | ||||||||
Men’s Wearhouse, Inc. | 1,575 | $ | 53,078 | |||||
O’Reilly Automotive, Inc.* | 3,200 | 209,632 | ||||||
PACCAR, Inc. | 8,300 | 424,047 | ||||||
Panera Bread Co.* | 1,000 | 125,660 | ||||||
PetSmart, Inc. | 2,300 | 104,351 | ||||||
Ross Stores, Inc. | 2,900 | 232,348 | ||||||
Royal Caribbean Cruises Ltd | 4,900 | 184,436 | ||||||
Skywest, Inc. | 5,200 | 78,312 | ||||||
Southwest Airlines Co. | 57,700 | 658,934 | ||||||
Staples, Inc. | 2,800 | 44,240 | ||||||
Starwood Hotels & Resorts | 14,000 | 784,560 | ||||||
Tiffany & Co. | 2,300 | 180,596 | ||||||
Tim Hortons, Inc. | 3,400 | 165,954 | ||||||
TJX Cos., Inc. | 7,400 | 388,722 | ||||||
Toll Brothers, Inc.* | 4,200 | 87,108 | ||||||
Tractor Supply Co. | 1,100 | 73,568 | ||||||
TRW Automotive Holdings* | 1,200 | 70,836 | ||||||
Urban Outfitters, Inc.* | 3,300 | 92,895 | ||||||
WABCO Holdings, Inc.* | 1,300 | 89,778 | ||||||
Walgreen Co. | 12,500 | 530,750 | ||||||
Williams-Sonoma, Inc. | 1,800 | 65,682 | ||||||
WMS Industries, Inc.* | 2,300 | 70,656 | ||||||
WW Grainger, Inc. | 4,000 | 614,600 | ||||||
Wynn Resorts Ltd | 1,000 | 143,540 | ||||||
CONSUMER, NON-CYCLICAL — 13.0% | ||||||||
Aetna, Inc. | 5,800 | 255,722 | ||||||
Alexion Pharmaceuticals * | 4,100 | 192,823 | ||||||
Altria Group, Inc. | 16,400 | 433,124 | ||||||
American Reprographics* | 4,000 | 28,280 | ||||||
AmerisourceBergen Corp. | 20,800 | 861,120 | ||||||
Amgen, Inc. | 14,800 | 863,580 | ||||||
Arthrocare Corp.* | 800 | 26,776 | ||||||
Automatic Data Processing | 3,700 | 134,856 | ||||||
Avon Products, Inc. | 16,300 | 456,400 | ||||||
Baxter International, Inc. | 10,400 | 620,776 | ||||||
Becton Dickinson and Co. | 3,100 | 267,127 | ||||||
BioMarin Pharmaceutical* | 1,900 | 51,699 | ||||||
Brown-Forman Corp. | 1,350 | 100,832 | ||||||
Bruker Corp.* | 3,600 | 73,296 | ||||||
Campbell Soup Co. | 9,100 | 314,405 | ||||||
Catalyst Health Solutions* | 1,800 | 100,476 | ||||||
Charles River Laboratories* | 1,000 | 40,650 | ||||||
Church & Dwight Co., Inc. | 2,800 | 113,512 | ||||||
CIGNA Corp. | 6,800 | 349,724 | ||||||
Clorox Co. | 5,300 | 357,432 | ||||||
Coca-Cola Co. | 10,600 | 713,274 | ||||||
Community Health Systems* | 2,200 | 56,496 | ||||||
Corporate Executive Board | 1,300 | 56,745 | ||||||
Covance, Inc.* | 1,000 | 59,370 | ||||||
CR Bard, Inc. | 4,400 | 483,384 | ||||||
DaVita, Inc.* | 1,650 | 142,907 | ||||||
Dendreon Corp.* | 3,800 | 149,872 | ||||||
DENTSPLY International, Inc. | 2,200 | 83,776 | ||||||
Diageo PLC — ADR | 9,800 | 802,326 | ||||||
Edwards Lifesciences Corp.* | 1,300 | 113,334 | ||||||
Equifax, Inc. | 1,500 | 52,080 | ||||||
General Mills, Inc. | 11,500 | 428,030 | ||||||
Genpact Ltd* | 4,100 | 70,684 | ||||||
Gen-Probe, Inc.* | 700 | 48,405 | ||||||
Global Payments, Inc. | 900 | 45,900 | ||||||
Green Dot Corp.* | 2,800 | 95,144 | ||||||
HCA Holdings, Inc.* | 7,800 | 257,400 | ||||||
Henry Schein, Inc.* | 1,700 | 121,703 | ||||||
Hershey Co. | 1,700 | 96,645 | ||||||
Hertz Global Holdings, Inc.* | 3,200 | 50,816 | ||||||
Hologic, Inc.* | 3,700 | 74,629 | ||||||
Human Genome Sciences* | 4,400 | 107,976 | ||||||
Humana, Inc. | 700 | 56,378 | ||||||
IDEXX Laboratories, Inc.* | 1,900 | 147,364 | ||||||
Illumina, Inc.* | 2,000 | 150,300 | ||||||
Incyte Corp Ltd* | 4,600 | 87,124 | ||||||
Intuitive Surgical, Inc.* | 200 | 74,422 | ||||||
Iron Mountain, Inc. | 1,512 | 51,544 | ||||||
JM Smucker Co. | 600 | 45,864 | ||||||
Kellogg Co. | 4,900 | 271,068 | ||||||
Kimberly-Clark Corp. | 4,100 | 272,896 | ||||||
Laboratory Corp of America* | 1,200 | 116,148 | ||||||
Life Technologies Corp.* | 1,100 | 57,277 | ||||||
Lorillard, Inc. | 4,400 | 479,028 | ||||||
Manpower, Inc. | 1,100 | 59,015 | ||||||
Masimo Corp.* | 1,600 | 47,488 | ||||||
McCormick & Co., Inc. | 6,800 | 337,076 | ||||||
McKesson Corp. | 10,800 | 903,420 | ||||||
Mead Johnson Nutrition Co. | 800 | 54,040 | ||||||
Medco Health Solutions* | 4,300 | 243,036 | ||||||
Mednax, Inc.* | 1,300 | 93,847 | ||||||
Molson Coors Brewing Co. | 6,000 | 268,440 | ||||||
Moody’s Corp. | 15,600 | 598,260 | ||||||
Myriad Genetics, Inc.* | 2,800 | 63,588 | ||||||
New Oriental Education — ADR* | 500 | 55,860 | ||||||
Patterson Cos., Inc. | 1,600 | 52,624 | ||||||
Paychex, Inc. | 5,593 | 171,817 |
18 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
CONSUMER, NON-CYCLICAL — 13.0% (continued) | ||||||||
PepsiCo., Inc. | 10,800 | $ | 760,644 | |||||
Philip Morris International | 11,900 | 794,563 | ||||||
Procter & Gamble Co. | 20,400 | 1,296,828 | ||||||
Quanta Services, Inc.* | 2,100 | 42,420 | ||||||
Quest Diagnostics, Inc. | 11,788 | 696,671 | ||||||
Regeneron Pharmaceuticals* | 2,800 | 158,788 | ||||||
ResMed, Inc.* | 1,700 | 52,615 | ||||||
Ritchie Bros Auctioneers | 1,900 | 52,231 | ||||||
Robert Half International | 3,600 | 97,308 | ||||||
SEI Investments Co. | 2,400 | 54,024 | ||||||
Strayer Education, Inc. | 400 | 50,556 | ||||||
SXC Health Solutions Corp.* | 2,100 | 123,732 | ||||||
Techne Corp. | 900 | 75,033 | ||||||
Teva Pharmaceutical — ADR | 11,000 | 530,420 | ||||||
Thoratec Corp.* | 2,000 | 65,640 | ||||||
UnitedHealth Group, Inc. | 15,200 | 784,016 | ||||||
Universal Health Services | 1,000 | 51,530 | ||||||
Valeant Pharmaceuticals* | 2,200 | 114,312 | ||||||
Varian Medical Systems, Inc.* | 1,400 | 98,028 | ||||||
Verisk Analytics, Inc.* | 2,300 | 79,626 | ||||||
Vertex Pharmaceuticals, Inc.* | 3,050 | 158,570 | ||||||
Visa, Inc. | 7,100 | 598,246 | ||||||
VistaPrint NV* | 1,000 | 47,850 | ||||||
WellPoint, Inc. | 8,000 | 630,160 | ||||||
Western Union Co. | 46,200 | 925,386 | ||||||
Whole Foods Market, Inc. | 2,800 | 177,660 | ||||||
Zimmer Holdings, Inc.* | 5,100 | 322,320 | ||||||
ENERGY — 8.8% | ||||||||
Apache Corp. | 2,300 | 283,797 | ||||||
Arch Coal, Inc. | 5,759 | 153,535 | ||||||
Baker Hughes, Inc. | 5,300 | 384,568 | ||||||
Cameron International Corp.* | 5,300 | 266,537 | ||||||
Chevron Corp. | 22,542 | 2,318,219 | ||||||
Cimarex Energy Co. | 5,800 | 521,536 | ||||||
Concho Resources, Inc.* | 2,400 | 220,440 | ||||||
Continental Resources, Inc.* | 6,300 | 408,933 | ||||||
Core Laboratories | 1,300 | 145,002 | ||||||
Devon Energy Corp. | 3,300 | 260,073 | ||||||
Diamond Offshore Drilling | 5,400 | 380,214 | ||||||
Dresser-Rand Group, Inc.* | 800 | 43,000 | ||||||
Dril-Quip, Inc.* | 700 | 47,481 | ||||||
El Paso Corp. | 13,200 | 266,640 | ||||||
EOG Resources, Inc. | 2,700 | 282,285 | ||||||
EQT Corp. | 10,300 | 540,956 | ||||||
Exxon Mobil Corp. | 17,002 | 1,383,623 | ||||||
First Solar, Inc.* | 1,300 | 171,951 | ||||||
FMC Technologies, Inc.* | 7,500 | 335,925 | ||||||
Forest Oil Corp.* | 10,300 | 275,113 | ||||||
Hess Corp. | 3,700 | 276,612 | ||||||
Kosmos Energy Ltd* | 3,200 | 54,336 | ||||||
Murphy Oil Corp. | 4,600 | 302,036 | ||||||
Nabors Industries Ltd* | 3,700 | 91,168 | ||||||
National Oilwell Varco, Inc. | 9,500 | 742,995 | ||||||
Newfield Exploration Co.* | 4,500 | 306,090 | ||||||
Occidental Petroleum Corp. | 12,900 | 1,342,116 | ||||||
Oceaneering International | 3,900 | 157,950 | ||||||
Peabody Energy Corp. | 9,200 | 541,972 | ||||||
Petroleo Brasileiro — ADR | 8,500 | 260,780 | ||||||
QEP Resources, Inc. | 2,000 | 83,660 | ||||||
Quicksilver Resources, Inc.* | 5,100 | 75,276 | ||||||
Range Resources Corp. | 12,400 | 688,200 | ||||||
Royal Dutch Shell PLC — ADR* | 3,800 | 270,294 | ||||||
Schlumberger Ltd | 8,360 | 722,304 | ||||||
SM Energy Co. | 1,200 | 88,176 | ||||||
Southwestern Energy Co.* | 2,000 | 85,760 | ||||||
Spectra Energy Corp. | 13,600 | 372,776 | ||||||
Tetra Technologies, Inc.* | 2,900 | 36,917 | ||||||
Ultra Petroleum Corp.* | 7,000 | 320,600 | ||||||
Walter Energy, Inc. | 3,400 | 393,720 | ||||||
FINANCIAL — 9.1% | ||||||||
Aflac, Inc. | 6,900 | 322,092 | ||||||
Air Lease Corp.* | 2,000 | 48,580 | ||||||
Arch Capital Group Ltd* | 9,200 | 293,664 | ||||||
Axis Capital Holdings Ltd | 1,700 | 52,632 | ||||||
BankUnited, Inc. | 2,100 | 55,734 | ||||||
BB&T Corp. | 14,000 | 375,760 | ||||||
BlackRock, Inc. | 4,700 | 901,507 | ||||||
Brown & Brown, Inc. | 7,100 | 182,186 | ||||||
CB Richard Ellis Group, Inc.* | 17,700 | 444,447 | ||||||
CBOE Holdings, Inc. | 4,100 | 100,860 | ||||||
Charles Schwab Corp. | 21,300 | 350,385 | ||||||
Chubb Corp. | 8,100 | 507,141 | ||||||
CIT Group, Inc.* | 6,400 | 283,264 | ||||||
Citigroup, Inc. | 6,600 | 274,824 | ||||||
City National Corp. | 5,800 | 314,650 | ||||||
CME Group, Inc. | 1,400 | 408,226 | ||||||
Eaton Vance Corp. | 3,700 | 111,851 | ||||||
Fifth Third Bancorp | 27,000 | 344,250 | ||||||
First Horizon National Corp. | 5,947 | 56,734 | ||||||
Forest City Enterprises, Inc.* | 4,500 | 84,015 | ||||||
HCC Insurance Holdings, Inc. | 11,100 | 349,650 | ||||||
IntercontinentalExchange* | 1,800 | 224,478 |
See Notes to Financial Statements | 19 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
FINANCIAL — 9.1% (continued) | ||||||||
Invesco Ltd | 22,200 | $ | 519,480 | |||||
Janus Capital Group, Inc. | 5,300 | 50,032 | ||||||
Jones Lang LaSalle, Inc. | 3,000 | 282,900 | ||||||
JPMorgan Chase & Co. | 43,600 | 1,784,984 | ||||||
KeyCorp | 31,600 | 263,228 | ||||||
Lazard Ltd | 3,000 | 111,300 | ||||||
Northern Trust Corp. | 7,500 | 344,700 | ||||||
NYSE Euronext | 8,000 | 274,160 | ||||||
PNC Financial Services Grp. | 12,500 | 745,125 | ||||||
Popular, Inc.* | 15,599 | 43,053 | ||||||
Principal Financial Group | 10,300 | 313,326 | ||||||
Regions Financial Corp. | 47,200 | 292,640 | ||||||
RenaissanceRe Holdings Ltd | 4,400 | 307,780 | ||||||
SLM Corp. | 19,200 | 322,752 | ||||||
State Street Corp. | 8,500 | 383,265 | ||||||
SunTrust Banks, Inc. | 23,300 | 601,140 | ||||||
SVB Financial Group* | 900 | 53,739 | ||||||
TCF Financial Corp. | 4,100 | 56,580 | ||||||
TD Ameritrade Holding | 7,000 | 136,570 | ||||||
Travelers Cos., Inc. | 7,100 | 414,498 | ||||||
US Bancorp | 35,528 | 906,319 | ||||||
Waddell & Reed Financial | 1,400 | 50,890 | ||||||
Wells Fargo & Co. | 51,260 | 1,438,356 | ||||||
Willis Group Holdings PLC | 14,200 | 583,762 | ||||||
WR Berkley Corp. | 1,400 | 45,416 | ||||||
Zions Bancorporation | 1,900 | 45,619 | ||||||
INDUSTRIAL — 9.0% | ||||||||
3M Co. | 8,400 | 796,740 | ||||||
AMETEK, Inc. | 3,050 | 136,945 | ||||||
Amphenol, Corp. | 2,800 | 151,172 | ||||||
Babcock & Wilcox Co.* | 13,600 | 376,856 | ||||||
Boeing Co. | 11,940 | 882,724 | ||||||
Caterpillar, Inc. | 3,200 | 340,672 | ||||||
CH Robinson Worldwide | 2,800 | 220,752 | ||||||
CLARCOR, Inc. | 1,200 | 56,736 | ||||||
Clean Harbors, Inc.* | 400 | 41,300 | ||||||
Cooper Industries PLC | 12,500 | 745,875 | ||||||
CSX Corp. | 20,500 | 537,510 | ||||||
Cummins, Inc. | 7,500 | 776,175 | ||||||
Dolby Laboratories, Inc.* | 2,900 | 123,134 | ||||||
Donaldson Co., Inc. | 1,700 | 103,156 | ||||||
Elbit Systems Ltd | 1,100 | 52,668 | ||||||
Embraer SA — ADR* | 14,900 | 458,622 | ||||||
Emerson Electric Co. | 10,000 | 562,500 | ||||||
Expeditors International | 4,000 | 204,760 | ||||||
Flowserve Corp. | 3,000 | 329,670 | ||||||
Fluor Corp. | 6,800 | 439,688 | ||||||
Foster Wheeler AG* | 1,800 | 54,684 | ||||||
General Cable Corp.* | 2,100 | 89,418 | ||||||
General Dynamics Corp. | 4,700 | 350,244 | ||||||
Gentex Corp. | 4,100 | 123,943 | ||||||
Goodrich Corp. | 6,700 | 639,850 | ||||||
Graco, Inc. | 1,700 | 86,122 | ||||||
Harsco Corp. | 1,700 | 55,420 | ||||||
Honeywell International | 4,500 | 268,155 | ||||||
Hubbell, Inc. | 1,800 | 116,910 | ||||||
IDEX Corp. | 1,125 | 51,581 | ||||||
II-VI, Inc.* | 2,800 | 71,680 | ||||||
Illinois Tool Works, Inc. | 9,700 | 547,953 | ||||||
Itron, Inc.* | 800 | 38,528 | ||||||
Jabil Circuit, Inc. | 4,100 | 82,820 | ||||||
Joy Global, Inc. | 8,500 | 809,540 | ||||||
Kansas City Southern* | 3,100 | 183,923 | ||||||
Landstar System, Inc. | 2,700 | 125,496 | ||||||
McDermott International* | 18,700 | 370,447 | ||||||
Mettler-Toledo International* | 600 | 101,202 | ||||||
National Instruments Corp. | 2,175 | 64,598 | ||||||
Pall Corp. | 1,500 | 84,345 | ||||||
Precision Castparts Corp. | 400 | 65,860 | ||||||
Republic Services, Inc. | 14,650 | 451,953 | ||||||
Rockwell Automation, Inc. | 700 | 60,732 | ||||||
Rockwell Collins, Inc. | 1,800 | 111,042 | ||||||
Roper Industries, Inc. | 2,200 | 183,260 | ||||||
Stericycle, Inc.* | 800 | 71,296 | ||||||
Terex Corp.* | 1,400 | 39,830 | ||||||
Thermo Fisher Scientific* | 7,100 | 457,169 | ||||||
TransDigm Group, Inc.* | 800 | 72,952 | ||||||
Trimble Navigation Ltd* | 4,700 | 186,308 | ||||||
Union Pacific Corp. | 8,500 | 887,400 | ||||||
United Parcel Service, Inc. | 11,000 | 802,230 | ||||||
United Technologies Corp. | 8,500 | 752,335 | ||||||
Valmont Industries, Inc. | 1,400 | 134,946 | ||||||
Wabtec Corp. | 1,200 | 78,864 | ||||||
Waste Connections, Inc. | 2,400 | 76,152 | ||||||
Waters Corp.* | 1,300 | 124,462 | ||||||
Zebra Technologies Corp.* | 1,300 | 54,821 | ||||||
TECHNOLOGY — 5.7% | ||||||||
Accenture PLC | 9,000 | 543,780 | ||||||
Adobe Systems, Inc.* | 15,000 | 471,750 | ||||||
Allscripts Healthcare* | 4,700 | 91,274 | ||||||
Altera Corp. | 4,200 | 194,670 | ||||||
Analog Devices, Inc. | 11,700 | 457,938 |
20 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
TECHNOLOGY — 5.7% (continued) | ||||||||
ANSYS, Inc.* | 2,400 | $ | 131,208 | |||||
Ariba, Inc.* | 2,000 | 68,940 | ||||||
ARM Holdings PLC — ADR | 3,900 | 110,877 | ||||||
Atmel Corp.* | 13,300 | 187,131 | ||||||
Autodesk, Inc.* | 5,200 | 200,720 | ||||||
BMC Software, Inc.* | 2,600 | 142,220 | ||||||
Cerner Corp.* | 1,800 | 109,998 | ||||||
Check Point Software* | 2,600 | 147,810 | ||||||
Citrix Systems, Inc.* | 2,000 | 160,000 | ||||||
Computer Sciences Corp. | 7,200 | 273,312 | ||||||
Concur Technologies, Inc.* | 2,300 | 115,161 | ||||||
Dun & Bradstreet Corp. | 700 | 52,878 | ||||||
Electronic Arts, Inc.* | 1,800 | 42,480 | ||||||
Fidelity National | 1,197 | 36,856 | ||||||
Fortinet, Inc.* | 2,600 | 70,954 | ||||||
GT Solar International, Inc.* | 3,100 | 50,220 | ||||||
Informatica Corp.* | 2,600 | 151,918 | ||||||
Intel Corp. | 11,700 | 259,272 | ||||||
International Business Mach. | 5,700 | 977,835 | ||||||
Intersil Corp. | 3,600 | 46,260 | ||||||
Intuit, Inc.* | 3,700 | 191,882 | ||||||
KLA-Tencor Corp. | 1,300 | 52,624 | ||||||
Lam Research Corp.* | 3,600 | 159,408 | ||||||
Linear Technology Corp. | 16,200 | 534,924 | ||||||
Logitech International SA* | 3,200 | 35,968 | ||||||
Marvell Technology Group* | 45,100 | 666,127 | ||||||
Maxim Integrated Products | 2,500 | 63,900 | ||||||
MEMC Electronic Materials* | 3,600 | 30,708 | ||||||
Microchip Technology, Inc. | 10,112 | 383,346 | ||||||
MICROS Systems, Inc.* | 1,600 | 79,536 | ||||||
MSCI, Inc.* | 4,400 | 165,792 | ||||||
NetApp, Inc.* | 1,500 | 79,170 | ||||||
Nuance Communications* | 12,100 | 259,787 | ||||||
NVIDIA Corp.* | 9,900 | 157,806 | ||||||
ON Semiconductor Corp.* | 8,000 | 83,760 | ||||||
QLogic Corp.* | 4,800 | 76,416 | ||||||
Red Hat, Inc.* | 4,200 | 192,780 | ||||||
Rovi Corp.* | 3,000 | 172,080 | ||||||
Salesforce.com, Inc.* | 400 | 59,592 | ||||||
Seagate Technology PLC | 3,400 | 54,944 | ||||||
Silicon Laboratories, Inc.* | 2,600 | 107,276 | ||||||
Skyworks Solutions, Inc.* | 3,300 | 75,834 | ||||||
Solera Holdings, Inc. | 1,400 | 82,824 | ||||||
Teradata Corp.* | 3,100 | 186,620 | ||||||
Texas Instruments, Inc. | 13,200 | 433,356 | ||||||
TriQuint Semiconductor* | 5,700 | 58,083 | ||||||
Xilinx, Inc. | 20,100 | 733,047 | ||||||
UTILITIES — 2.0% | ||||||||
Calpine Corp.* | 24,600 | 396,797 | ||||||
Duke Energy, Corp. | 15,300 | 288,098 | ||||||
Entergy Corp. | 3,800 | 259,463 | ||||||
Exelon Corp. | 6,750 | 289,170 | ||||||
NextEra Energy, Inc. | 4,500 | 258,570 | ||||||
NRG Energy, Inc.* | 13,500 | 331,830 | ||||||
Pepco Holdings, Inc. | 14,400 | 282,672 | ||||||
Progress Energy, Inc. | 6,000 | 288,060 | ||||||
SCANA Corp. | 8,900 | 350,393 | ||||||
Southern Co. | 13,700 | 553,206 | ||||||
TECO Energy, Inc. | 14,000 | 264,460 | ||||||
TOTAL COMMON STOCK — 63.0% (Cost $90,984,673) | $ | 113,575,224 | ||||||
* | Securities are non-income producing ADR — American Depository Receipt |
See Notes to Financial Statements | 21 |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Principal | ||||||||||||||||
Fixed Income Securities | Coupon | Maturity | Amount | Value | ||||||||||||
BASIC MATERIALS — 1.3% | ||||||||||||||||
Barrick Gold Corp. | 6.950 | 04/01/2019 | $ | 1,500,000 | $ | 1,783,239 | ||||||||||
BHP Billiton Finance USA Ltd | 7.250 | 03/01/2016 | 500,000 | 605,227 | ||||||||||||
COMMUNICATIONS — 4.0% | ||||||||||||||||
Comcast Corp. | 5.850 | 11/15/2015 | 2,000,000 | 2,268,154 | ||||||||||||
Michigan Bell Telephone Co. | 7.850 | 01/15/2022 | 2,000,000 | 2,451,352 | ||||||||||||
Verizon New Jersey, Inc. | 8.000 | 06/01/2022 | 650,000 | 775,494 | ||||||||||||
Vodafone Group PLC | 5.375 | 01/30/2015 | 1,500,000 | 1,667,559 | ||||||||||||
CONSUMER, CYCLICAL — 0.6% | ||||||||||||||||
Macy’s Retail Holdings, Inc. | 7.450 | 09/15/2011 | 1,000,000 | 1,009,220 | ||||||||||||
CONSUMER, NON-CYCLICAL — 3.6% | ||||||||||||||||
Anheuser-Busch InBev | 2.875 | 02/15/2016 | 1,000,000 | 1,018,919 | ||||||||||||
Genentech, Inc. | 4.750 | 07/15/2015 | 1,000,000 | 1,102,249 | ||||||||||||
Gilead Sciences, Inc. | 4.500 | 04/01/2021 | 1,000,000 | 1,001,657 | ||||||||||||
Pfizer, Inc. | 5.350 | 03/15/2015 | 1,500,000 | 1,691,217 | ||||||||||||
Roche Holdings, Inc.* | 6.000 | 03/01/2019 | 1,500,000 | 1,728,242 | ||||||||||||
ENERGY — 3.7% | ||||||||||||||||
Kinder Morgan Energy Partners | 6.850 | 02/15/2020 | 1,000,000 | 1,156,236 | ||||||||||||
Shell International Finance BV | 4.300 | 09/22/2019 | 1,000,000 | 1,050,205 | ||||||||||||
Statoil ASA | 7.500 | 10/01/2016 | 1,000,000 | 1,231,918 | ||||||||||||
Total Capital | 2.300 | 03/15/2016 | 2,000,000 | 1,998,466 | ||||||||||||
TransCanada PipeLines Ltd | 7.125 | 01/15/2019 | 1,000,000 | 1,225,519 | ||||||||||||
FINANCIAL — 8.9% | ||||||||||||||||
American Honda Finance Corp.* | 2.500 | 09/21/2015 | 1,000,000 | 1,005,207 | ||||||||||||
Bank of America Corp. | 0.509 | 10/14/2016 | 1,000,000 | 924,048 | ||||||||||||
Barclays Bank PLC* | 6.050 | 12/04/2017 | 1,000,000 | 1,058,791 | ||||||||||||
Berkshire Hathaway Finance Corp. | 5.400 | 05/15/2018 | 1,000,000 | 1,109,252 | ||||||||||||
Citigroup, Inc. | 4.750 | 05/19/2015 | 1,346,000 | 1,423,478 | ||||||||||||
Citigroup, Inc. | 0.522 | 06/09/2016 | 1,000,000 | 919,163 | ||||||||||||
General Electric Capital Corp. | 4.625 | 01/07/2021 | 1,000,000 | 1,005,886 | ||||||||||||
Goldman Sachs Group, Inc. | 5.950 | 01/18/2018 | 1,000,000 | 1,077,873 | ||||||||||||
HSBC Bank USA | 4.875 | 08/24/2020 | 1,000,000 | 984,534 | ||||||||||||
JPMorgan Chase & Co. | 4.950 | 03/25/2020 | 1,000,000 | 1,032,967 | ||||||||||||
Lloyds TSB Bank PLC | 6.375 | 01/21/2021 | 1,000,000 | 1,041,055 | ||||||||||||
Morgan Stanley | 0.700 | 10/18/2016 | 1,000,000 | 920,586 | ||||||||||||
Nationsbank Corp. | 10.200 | 07/15/2015 | 1,250,000 | 1,511,310 | ||||||||||||
PNC Funding Corp. | 5.250 | 11/15/2015 | 1,000,000 | 1,089,611 | ||||||||||||
UBS AG | 4.875 | 08/04/2020 | 1,000,000 | 1,011,447 | ||||||||||||
GOVERNMENT — 2.3% | ||||||||||||||||
Federal Farm Credit Bank | 4.875 | 12/16/2015 | 1,000,000 | 1,135,593 | ||||||||||||
Federal Farm Credit Bank | 1.700 | 10/28/2016 | 1,000,000 | 978,819 | ||||||||||||
Federal Home Loan Banks | 1.625 | 12/11/2015 | 1,000,000 | 990,835 | ||||||||||||
Province of Ontario Canada | 1.875 | 09/15/2015 | 1,000,000 | 999,148 |
22 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — BALANCED FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Fixed Income Securities | Principal | |||||||||||||||
and Short-Term Investments | Coupon | Maturity | Amount | Value | ||||||||||||
INDUSTRIAL — 1.7% | ||||||||||||||||
Burlington Northern Santa Fe | 5.750 | 03/15/2018 | $ | 1,000,000 | $ | 1,133,900 | ||||||||||
Clark Equipment Co. | 8.000 | 05/01/2023 | 500,000 | 562,062 | ||||||||||||
United Parcel Service | 8.375 | 04/01/2020 | 1,000,000 | 1,349,294 | ||||||||||||
MORTGAGE SECURITIES — 2.3% | ||||||||||||||||
Fannie Mae Pool | 7.000 | 04/01/2033 | 421,650 | 486,486 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 06/01/2024 | 319,328 | 361,245 | ||||||||||||
Freddie Mac Gold Pool | 7.000 | 10/01/2031 | 620,267 | 718,962 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 02/01/2032 | 726,472 | 823,264 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 08/01/2032 | 366,416 | 415,235 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 12/01/2032 | 646,098 | 732,877 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 04/01/2033 | 285,537 | 323,581 | ||||||||||||
Lehman Mortgage Trust | 6.000 | 09/25/2036 | 262,010 | 8,014 | ||||||||||||
MASTR Asset Securitization | 6.250 | 05/25/2036 | 351,796 | 306,030 | ||||||||||||
TECHNOLOGY — 0.6% | ||||||||||||||||
Oracle Corp. | 5.750 | 04/15/2018 | 1,000,000 | 1,144,465 | ||||||||||||
UTILITIES — 6.4% | ||||||||||||||||
Ameren Illinois Co. | 9.750 | 11/15/2018 | 1,000,000 | 1,314,051 | ||||||||||||
Commonwealth Edison Co. | 5.800 | 03/15/2018 | 1,000,000 | 1,121,022 | ||||||||||||
Consumers Energy Co. | 6.700 | 09/15/2019 | 2,000,000 | 2,398,936 | ||||||||||||
Duke Energy Indiana, Inc. | 3.750 | 07/15/2020 | 1,000,000 | 991,827 | ||||||||||||
Entergy Texas, Inc. | 7.125 | 02/01/2019 | 1,000,000 | 1,173,220 | ||||||||||||
Michigan Consolidated Gas Co. | 8.250 | 05/01/2014 | 1,050,000 | 1,210,520 | ||||||||||||
Oncor Electric Delivery Co LLC | 5.000 | 09/30/2017 | 1,000,000 | 1,082,308 | ||||||||||||
South Carolina Electric & Gas | 6.500 | 11/01/2018 | 1,000,000 | 1,180,987 | ||||||||||||
United Utilities PLC | 5.375 | 02/01/2019 | 1,000,000 | 1,042,024 | ||||||||||||
TOTAL FIXED-INCOME SECURITIES — 35.4% (Cost $61,640,280) | 63,864,786 | |||||||||||||||
SHORT-TERM INVESTMENTS — 0.4% | ||||||||||||||||
Fifth Third Institutional Money Market Fund, 0.01% Yield (Cost $826,604) | 826,604 | |||||||||||||||
TOTAL INVESTMENTS IN SECURITIES — 98.8% (Cost $153,451,557) | 178,266,614 | |||||||||||||||
OTHER ASSETS LESS LIABILITIES — 1.2% | 2,080,461 | |||||||||||||||
TOTAL NET ASSETS — 100.0% | $ | 180,347,075 | ||||||||||||||
* | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration. At June 30, 2011, the aggregate market value of these securities amounted to $3,792,240 or 2.10% of net assets. |
See Notes to Financial Statements | 23 |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
Top Ten Holdings*
WellPoint, Inc. 5.875% 2017 | 1.48 | % | ||
Carolina Power & Light Co. 8.625% 2021 | 1.48 | % | ||
Statoil ASA 7.500% 2016 | 1.37 | % | ||
Michigan Bell Telephone Co. 7.850% 2022 | 1.36 | % | ||
Consumers Energy Co. 6.700% 2019 | 1.33 | % | ||
Host Hotels & Resorts LP 6.875% 2014 | 1.33 | % | ||
MetLife, Inc. 6.750% 2016 | 1.29 | % | ||
Sempra Energy 6.500% 2016 | 1.29 | % | ||
Roche Holdings, Inc. 6.000% 2019 | 1.28 | % | ||
Chesapeake Energy Corp. 7.250% 2018 | 1.27 | % |
* | Percentages based on Total Net Assets |
24 |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Principal | ||||||||||||||||
Fixed Income Securities | Coupon | Maturity | Amount | Value | ||||||||||||
BASIC MATERIALS — 4.3% | ||||||||||||||||
ArcelorMittal | 5.250 | 08/05/2020 | $ | 3,000,000 | $ | 2,966,199 | ||||||||||
Barrick Gold Corp. | 6.950 | 04/01/2019 | 2,500,000 | 2,972,065 | ||||||||||||
Newmont Mining Corp. | 5.125 | 10/01/2019 | 2,500,000 | 2,685,018 | ||||||||||||
Steel Dynamics, Inc. | 6.750 | 04/01/2015 | 3,025,000 | 3,085,500 | ||||||||||||
COMMUNICATIONS — 9.6% | ||||||||||||||||
Comcast Cable Communications | 8.500 | 05/01/2027 | 1,000,000 | 1,222,833 | ||||||||||||
Comcast Corp. | 5.850 | 11/15/2015 | 2,000,000 | 2,268,154 | ||||||||||||
Cricket Communications, Inc. | 7.750 | 05/15/2016 | 3,000,000 | 3,180,000 | ||||||||||||
GTE Corp. | 8.750 | 11/01/2021 | 1,500,000 | 1,998,218 | ||||||||||||
Michigan Bell Telephone Co. | 7.850 | 01/15/2022 | 3,000,000 | 3,677,028 | ||||||||||||
News America, Inc. | 8.500 | 02/23/2025 | 2,300,000 | 2,909,677 | ||||||||||||
Qwest Corp. | 7.625 | 06/15/2015 | 3,000,000 | 3,390,000 | ||||||||||||
TW, Inc. | 9.150 | 02/01/2023 | 2,000,000 | 2,691,108 | ||||||||||||
Verizon New Jersey, Inc. | 8.000 | 06/01/2022 | 1,000,000 | 1,193,067 | ||||||||||||
Virgin Media Secured Finance | 6.500 | 01/15/2018 | 3,000,000 | 3,288,750 | ||||||||||||
CONSUMER, CYCLICAL — 1.9% | ||||||||||||||||
GameStop Corp. | 8.000 | 10/01/2012 | 1,766,000 | 1,792,490 | ||||||||||||
Wynn Las Vegas LLC | 7.750 | 08/15/2020 | 3,000,000 | 3,258,749 | ||||||||||||
CONSUMER, NON-CYCLICAL 8.0% | ||||||||||||||||
Anheuser-Busch InBev | 2.875 | 02/15/2016 | 2,000,000 | 2,037,838 | ||||||||||||
Apria Healthcare Group, Inc. | 11.250 | 11/01/2014 | 3,000,000 | �� | 3,105,000 | |||||||||||
Gilead Sciences, Inc. | 4.500 | 04/01/2021 | 3,000,000 | 3,004,971 | ||||||||||||
Pfizer, Inc. | 6.200 | 03/15/2019 | 2,500,000 | 2,924,383 | ||||||||||||
Roche Holdings, Inc.* | 6.000 | 03/01/2019 | 3,000,000 | 3,456,483 | ||||||||||||
UnitedHealth Group, Inc. | 4.700 | 02/15/2021 | 3,000,000 | 3,127,599 | ||||||||||||
WellPoint, Inc. | 5.875 | 06/15/2017 | 3,500,000 | 4,001,613 | ||||||||||||
ENERGY — 8.8% | ||||||||||||||||
Chesapeake Energy Corp. | 7.250 | 12/15/2018 | 3,155,000 | 3,438,950 | ||||||||||||
Husky Energy, Inc. | 6.200 | 09/15/2017 | 2,575,000 | 2,917,954 | ||||||||||||
Kinder Morgan Energy Partners | 6.850 | 02/15/2020 | 2,000,000 | 2,312,472 | ||||||||||||
Shell International Finance BV | 4.300 | 09/22/2019 | 3,000,000 | 3,150,615 | ||||||||||||
Statoil ASA | 7.500 | 10/01/2016 | 3,000,000 | 3,695,754 | ||||||||||||
Total Capital | 4.450 | 06/24/2020 | 3,000,000 | 3,131,196 | ||||||||||||
TransCanada PipeLines Ltd | 7.125 | 01/15/2019 | 2,000,000 | 2,451,038 | ||||||||||||
Ultramar Diamond Shamrock | 7.200 | 10/15/2017 | 2,250,000 | 2,629,580 | ||||||||||||
FINANCIAL — 21.7% | ||||||||||||||||
American Honda Finance Corp.* | 2.500 | 09/21/2015 | 3,000,000 | 3,015,621 | ||||||||||||
Bank of America Corp. | 7.750 | 08/15/2015 | 1,160,000 | 1,316,784 | ||||||||||||
Bank of America Corp. | 0.509 | 10/14/2016 | 1,000,000 | 924,048 | ||||||||||||
Barclays Bank PLC* | 6.050 | 12/04/2017 | 3,000,000 | 3,176,373 | ||||||||||||
Berkshire Hathaway Finance Corp. | 5.400 | 05/15/2018 | 1,500,000 | 1,663,878 | ||||||||||||
BlackRock, Inc. | 5.000 | 12/10/2019 | 2,000,000 | 2,125,944 | ||||||||||||
Citigroup, Inc. | 6.125 | 11/21/2017 | 3,000,000 | 3,313,362 | ||||||||||||
General Electric Capital Corp. | 4.625 | 01/07/2021 | 3,000,000 | 3,017,658 | ||||||||||||
Goldman Sachs Group, Inc. | 6.750 | 10/01/2037 | 3,000,000 | 2,999,949 | ||||||||||||
Host Hotels & Resorts LP | 6.875 | 11/01/2014 | 3,500,000 | 3,587,500 |
See Notes to Financial Statements | 25 |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Principal | ||||||||||||||||
Fixed Income Securities | Coupon | Maturity | Amount | Value | ||||||||||||
FINANCIAL — 21.7% (continued) | ||||||||||||||||
HSBC Bank USA | 4.875 | 08/24/2020 | $ | 2,000,000 | $ | 1,969,068 | ||||||||||
HSBC USA Capital Trust II* | 8.380 | 05/15/2027 | 1,000,000 | 1,015,854 | ||||||||||||
Icahn Enterprises LP | 7.750 | 01/15/2016 | 3,000,000 | 3,078,750 | ||||||||||||
JPMorgan Chase & Co. | 4.950 | 03/25/2020 | 3,000,000 | 3,098,901 | ||||||||||||
Lloyds TSB Bank PLC | 6.375 | 01/21/2021 | 3,000,000 | 3,123,165 | ||||||||||||
MetLife, Inc. | 6.750 | 06/01/2016 | 3,000,000 | 3,491,865 | ||||||||||||
Morgan Stanley | 0.700 | 10/18/2016 | 3,000,000 | 2,761,758 | ||||||||||||
Nationsbank Corp. | 10.200 | 07/15/2015 | 2,000,000 | 2,418,096 | ||||||||||||
PNC Funding Corp. | 5.250 | 11/15/2015 | 3,001,000 | 3,269,923 | ||||||||||||
Royal Bank of Scotland PLC | 6.125 | 01/11/2021 | 3,000,000 | 3,075,342 | ||||||||||||
Security Benefit Life Insurance* | 8.750 | 05/15/2016 | 2,000,000 | 2,079,420 | ||||||||||||
Societe Generale* | 5.750 | 04/20/2016 | 2,000,000 | 1,998,396 | ||||||||||||
UBS AG | 5.750 | 04/25/2018 | 2,000,000 | 2,168,356 | ||||||||||||
GOVERNMENT — 9.4% | ||||||||||||||||
Federal Farm Credit Bank | 4.875 | 12/16/2015 | 3,000,000 | 3,406,779 | ||||||||||||
Federal Farm Credit Bank | 1.700 | 10/28/2016 | 3,035,000 | 2,970,716 | ||||||||||||
Federal Farm Credit Bank | 4.670 | 02/27/2018 | 3,000,000 | 3,348,267 | ||||||||||||
Federal Farm Credit Bank | 5.050 | 08/01/2018 | 1,000,000 | 1,134,233 | ||||||||||||
Federal Farm Credit Bank | 5.150 | 11/15/2019 | 2,200,000 | 2,498,934 | ||||||||||||
Federal Home Loan Banks | 1.625 | 12/11/2015 | 3,000,000 | 2,972,505 | ||||||||||||
Federal Home Loan Banks | 2.600 | 10/20/2017 | 3,000,000 | 2,974,332 | ||||||||||||
Federal Home Loan Mortgage | 1.750 | 09/10/2015 | 3,000,000 | 3,012,471 | ||||||||||||
Province of Ontario Canada | 1.875 | 09/15/2015 | 3,000,000 | 2,997,444 | ||||||||||||
INDUSTRIAL — 3.1% | ||||||||||||||||
Case New Holland, Inc.* | 7.875 | 12/01/2017 | 2,500,000 | 2,750,000 | ||||||||||||
Clark Equipment Co. | 8.000 | 05/01/2023 | 500,000 | 562,062 | ||||||||||||
Gulfmark Offshore, Inc. | 7.750 | 07/15/2014 | 2,375,000 | 2,398,750 | ||||||||||||
United Parcel Service | 8.375 | 04/01/2020 | 2,000,000 | 2,698,588 | ||||||||||||
MORTGAGE SECURITIES — 4.4% | ||||||||||||||||
Fannie Mae Pool | 7.000 | 02/01/2032 | 881,834 | 1,019,095 | ||||||||||||
Fannie Mae Pool | 7.000 | 03/01/2032 | 882,011 | 1,019,306 | ||||||||||||
Fannie Mae Pool | 7.000 | 04/01/2033 | 659,504 | 760,914 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 06/01/2024 | 745,098 | 842,906 | ||||||||||||
Freddie Mac Gold Pool | 7.000 | 10/01/2031 | 1,058,536 | 1,226,968 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 02/01/2032 | 1,163,492 | 1,318,511 | ||||||||||||
Freddie Mac Gold Pool | 7.000 | 05/01/2032 | 1,427,319 | 1,656,587 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 08/01/2032 | 488,554 | 553,647 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 04/01/2033 | 856,612 | 970,744 | ||||||||||||
Freddie Mac Gold Pool | 7.000 | 09/01/2033 | 293,933 | 341,710 | ||||||||||||
Freddie Mac Gold Pool | 6.500 | 10/01/2038 | 1,662,429 | 1,884,963 | ||||||||||||
Lehman Mortgage Trust | 6.000 | 09/25/2036 | 482,523 | 14,758 | ||||||||||||
MASTR Alternative Loans Trust | 6.500 | 12/25/2033 | 184,339 | 178,980 | ||||||||||||
TECHNOLOGY — 1.2% | ||||||||||||||||
Hewlett-Packard Co. | 2.200 | 12/01/2015 | 1,000,000 | 1,001,369 | ||||||||||||
Oracle Corp. | 5.750 | 04/15/2018 | 2,000,000 | 2,288,930 |
26 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I — RETIREMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Fixed Income Securities, Common Stock | Shares/ | |||||||||||||||
and Short-Term Investments | Coupon | Maturity | Principal | Value | ||||||||||||
UTILITIES — 14.8% | ||||||||||||||||
AES Corp. | 8.000 | 10/15/2017 | $ | 3,000,000 | $ | 3,180,000 | ||||||||||
Ameren Illinois Co. | 9.750 | 11/15/2018 | 2,000,000 | 2,628,102 | ||||||||||||
Calpine Construction Finance Co. | 8.000 | 06/01/2016 | 3,000,000 | 3,240,000 | ||||||||||||
Carolina Power & Light Co. | 8.625 | 09/15/2021 | 3,000,000 | 4,000,044 | ||||||||||||
CenterPoint Energy Houston | 9.150 | 03/15/2021 | 2,300,000 | 3,003,404 | ||||||||||||
Commonwealth Edison Co. | 6.150 | 09/15/2017 | 2,155,000 | 2,494,061 | ||||||||||||
Consumers Energy Co. | 6.700 | 09/15/2019 | 3,000,000 | 3,598,404 | ||||||||||||
Dominion Resources, Inc. | 4.450 | 03/15/2021 | 2,500,000 | 2,547,588 | ||||||||||||
Duke Energy Corp. | 5.050 | 09/15/2019 | 3,000,000 | 3,227,130 | ||||||||||||
Entergy Gulf States Louisiana | 6.000 | 05/01/2018 | 1,000,000 | 1,117,769 | ||||||||||||
Entergy Texas, Inc. | 7.125 | 02/01/2019 | 2,000,000 | 2,346,440 | ||||||||||||
Oncor Electric Delivery Co LLC | 5.000 | 09/30/2017 | 2,000,000 | 2,164,616 | ||||||||||||
Sempra Energy | 6.500 | 06/01/2016 | 3,000,000 | 3,474,270 | ||||||||||||
United Utilities PLC | 5.375 | 02/01/2019 | 3,000,000 | 3,126,071 | ||||||||||||
TOTAL FIXED-INCOME SECURITIES — 87.2% (Cost $226,713,081) | 235,606,681 | |||||||||||||||
COMMON STOCK — 10.2% | ||||||||||||||||
AT&T, Inc. | 86,200 | 2,707,542 | ||||||||||||||
Altria Group, Inc. | 101,800 | 2,688,538 | ||||||||||||||
Exelon Corp. | 70,000 | 2,998,800 | ||||||||||||||
Exxon Mobil Corp. | 32,203 | 2,620,680 | ||||||||||||||
Johnson & Johnson | 41,600 | 2,767,232 | ||||||||||||||
Kimberly-Clark Corp. | 40,900 | 2,722,304 | ||||||||||||||
Kraft Foods, Inc. | 80,800 | 2,846,584 | ||||||||||||||
Merck & Co., Inc. | 75,400 | 2,660,866 | ||||||||||||||
PepsiCo., Inc. | 39,500 | 2,781,985 | ||||||||||||||
Procter & Gamble Co. | 41,700 | 2,650,869 | ||||||||||||||
TOTAL COMMON STOCK — 10.2% (Cost $25,195,248) | 27,445,400 | |||||||||||||||
SHORT-TERM INVESTMENTS — 1.3% | ||||||||||||||||
Fifth Third Institutional Money Market Fund, 0.01% Yield (Cost $3,425,052) | 3,425,052 | |||||||||||||||
TOTAL INVESTMENTS IN SECURITIES — 98.7% Cost ($255,333,381) | 266,477,133 | |||||||||||||||
OTHER ASSETS LESS LIABILITIES — 1.3% | 3,641,948 | |||||||||||||||
TOTAL NET ASSETS — 100.0% | $ | 270,119,081 | ||||||||||||||
* | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration. At June 30, 2011, the aggregate market value of these securities amounted to $17,492,147 or 6.48% of net assets. |
See Notes to Financial Statements | 27 |
Table of Contents
ADVANCE CAPITAL I — CORE EQUITY FUND
SUMMARY OF PORTFOLIO HOLDINGS (Unaudited)
JUNE 30, 2011
JUNE 30, 2011
Top Ten Holdings*
ConocoPhillips | 3.61 | % | ||
EMC Corp. | 3.48 | % | ||
Cisco Systems, Inc. | 3.43 | % | ||
Johnson & Johnson | 3.24 | % | ||
Liberty Media Corp — Capital | 3.17 | % | ||
JPMorgan Chase & Co. | 2.99 | % | ||
Microsoft Corp. | 2.98 | % | ||
Berkshire Hathaway, Inc. | 2.95 | % | ||
Symantec Corp. | 2.92 | % | ||
Forest Laboratories, Inc. | 2.89 | % |
* | Percentages based on Total Net Assets |
28
Table of Contents
ADVANCE CAPITAL I — CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
PORTFOLIO OF INVESTMENTS (Unaudited)
JUNE 30, 2011
Common Stock | Shares | Value | ||||||
BASIC MATERIALS — 5.4% | ||||||||
Freeport-McMoRan Copper | 5,835 | $ | 308,672 | |||||
PPG Industries, Inc. | 2,995 | 271,916 | ||||||
COMMUNICATIONS — 16.8% | ||||||||
AT&T, Inc. | 5,719 | 179,634 | ||||||
Cisco Systems, Inc. | 23,458 | 366,179 | ||||||
Google, Inc.* | 566 | 286,611 | ||||||
Harris Corp. | 2,847 | 128,286 | ||||||
Liberty Media Corp — Capital* | 3,940 | 337,855 | ||||||
Symantec Corp.* | 15,791 | 311,399 | ||||||
Vodafone Group PLC — ADR | 6,874 | 183,673 | ||||||
CONSUMER, CYCLICAL — 1.7% | ||||||||
Wal-Mart Stores, Inc. | 3,387 | 179,985 | ||||||
CONSUMER, NON-CYCLICAL — 18.3% | ||||||||
Altria Group, Inc. | 6,375 | 168,364 | ||||||
Amgen, Inc. | 4,261 | 248,629 | ||||||
Eli Lilly & Co. | 5,175 | 194,218 | ||||||
Forest Laboratories, Inc.* | 7,852 | 308,898 | ||||||
Johnson & Johnson | 5,194 | 345,505 | ||||||
Kimberly-Clark Corp. | 3,299 | 219,581 | ||||||
Pfizer, Inc. | 10,937 | 225,302 | ||||||
UnitedHealth Group, Inc. | 4,694 | 242,117 | ||||||
ENERGY — 16.3% | ||||||||
Apache Corp. | 1,841 | 227,161 | ||||||
Chevron Corp. | 1,720 | 176,885 | ||||||
ConocoPhillips | 5,131 | 385,800 | ||||||
Devon Energy Corp. | 2,891 | 227,840 | ||||||
National Oilwell Varco, Inc. | 2,410 | 188,486 | ||||||
Noble Corp.* | 6,972 | 274,767 | ||||||
Occidental Petroleum Corp. | 2,459 | 255,834 | ||||||
Common Stock and | ||||||||
Short-Term Investments | Shares | Value | ||||||
FINANCIAL — 19.3% | ||||||||
ACE Ltd | 4,212 | $ | 277,234 | |||||
Bank of America Corp. | 22,404 | 245,548 | ||||||
Berkshire Hathaway, Inc.* | 4,063 | 314,436 | ||||||
Capital One Financial Corp. | 5,628 | 290,799 | ||||||
Citigroup, Inc. | 4,429 | 184,424 | ||||||
JPMorgan Chase & Co. | 7,783 | 318,636 | ||||||
Loews Corp. | 6,297 | 265,041 | ||||||
Travelers Cos., Inc. | 2,716 | 158,560 | ||||||
INDUSTRIAL — 8.7% | ||||||||
Boeing Co. | 2,070 | 153,035 | ||||||
CSX Corp. | 6,705 | 175,805 | ||||||
General Dynamics Corp. | 2,687 | 200,235 | ||||||
L-3 Communications | 1,935 | 169,216 | ||||||
Northrop Grumman Corp. | 3,244 | 224,971 | ||||||
TECHNOLOGY — 10.9% | ||||||||
Dell, Inc.* | 13,160 | 219,376 | ||||||
EMC Corp.* | 13,498 | 371,870 | ||||||
Microsoft Corp. | 12,219 | 317,693 | ||||||
Oracle Corp. | 8,070 | 265,584 | ||||||
TOTAL COMMON STOCK — 97.4% (Cost $9,104,475) | 10,396,060 | |||||||
SHORT-TERM INVESTMENTS — 2.4% | ||||||||
Fifth Third Inst. Money Market Fund, 0.01% Yield (Cost $259,605) | 259,605 | |||||||
TOTAL INVESTMENT IN SECURITIES — 99.8% (Cost $9,364,080) | 10,655,665 | |||||||
OTHER ASSETS LESS LIABILITIES — 0.2% | 17,446 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 10,673,111 | ||||||
* | Securities are non-income producing |
See Notes to Financial Statements | 29 |
Table of Contents
ADVANCE CAPITAL I, INC.
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
JUNE 30, 2011
JUNE 30, 2011
EQUITY | BALANCED | RETIREMENT | CORE EQUITY | |||||||||||||
GROWTH FUND | FUND | INCOME FUND | FUND | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities at value (Cost $84,246,640;$153,451,557; $255,333,381;$9,364,080, respectively) | $ | 107,292,570 | $ | 178,266,614 | $ | 266,477,133 | $ | 10,655,665 | ||||||||
Cash | 393 | 97,038 | 3,268 | 93 | ||||||||||||
Receivables | ||||||||||||||||
Dividends and interest | 47,768 | 977,029 | 3,185,008 | 15,205 | ||||||||||||
Securities sold | 2,414,333 | 1,677,361 | 564,799 | 0 | ||||||||||||
Capital shares receivable | 350 | 50 | 40,050 | 0 | ||||||||||||
Notes receivable from adviser | 1,065,342 | 1,120,056 | 37,008 | 0 | ||||||||||||
Prepaid expenses | 6,330 | 7,526 | 8,859 | 4,292 | ||||||||||||
Total assets | 110,827,086 | 182,145,674 | 270,316,125 | 10,675,255 | ||||||||||||
LIABILITIES | ||||||||||||||||
Accounts payable and accrued expenses | 16,639 | 27,784 | 38,783 | 2,144 | ||||||||||||
Securities purchased | 2,353,224 | 1,708,704 | 0 | 0 | ||||||||||||
Capital shares payable | 75,187 | 57,572 | 133,717 | 0 | ||||||||||||
Distributions payable | 0 | 4,539 | 24,544 | 0 | ||||||||||||
Total liabilities | 2,445,050 | 1,798,599 | 197,044 | 2,144 | ||||||||||||
Net assets | $ | 108,382,036 | $ | 180,347,075 | $ | 270,119,081 | $ | 10,673,111 | ||||||||
NET ASSETS | ||||||||||||||||
Retail shares | ||||||||||||||||
Net assets | 107,005,598 | 179,900,195 | 269,549,549 | 10,033,414 | ||||||||||||
Number of shares outstanding (Note 6) | 4,171,376 | 10,827,376 | 31,342,691 | 965,330 | ||||||||||||
Net asset value | $ | 25.65 | $ | 16.62 | $ | 8.60 | $ | 10.39 | ||||||||
Institutional shares | ||||||||||||||||
Net assets | 1,376,438 | 446,880 | 569,532 | 639,697 | ||||||||||||
Number of shares outstanding (Note 6) | 53,482 | 26,964 | 66,234 | 60,979 | ||||||||||||
Net asset value | $ | 25.74 | $ | 16.57 | $ | 8.60 | $ | 10.49 | ||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | 94,714,771 | 200,603,429 | 327,128,894 | 10,846,945 | ||||||||||||
Accumulated undistributed net investment income (loss) | (134,892 | ) | 0 | 0 | 24,959 | |||||||||||
Accumulated undistributed net realized loss on investments | (9,243,773 | ) | (45,071,411 | ) | (68,153,565 | ) | (1,490,378 | ) | ||||||||
Net unrealized appreciation in value of investments | 23,045,930 | 24,815,057 | 11,143,752 | 1,291,585 | ||||||||||||
Net assets | $ | 108,382,036 | $ | 180,347,075 | $ | 270,119,081 | $ | 10,673,111 | ||||||||
30 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I, INC.
STATEMENTS OF OPERATIONS (Unaudited)
SIX MONTHS ENDED JUNE 30, 2011
SIX MONTHS ENDED JUNE 30, 2011
EQUITY | BALANCED | RETIREMENT | CORE | |||||||||||||
GROWTH FUND | FUND | INCOME FUND | EQUITY FUND | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Interest | $ | 61 | $ | 631,594 | $ | 4,044,647 | $ | 84 | ||||||||
Interest from adviser | 38,778 | 40,770 | 1,347 | 0 | ||||||||||||
Dividends | 412,400 | 962,518 | 515,819 | 94,414 | ||||||||||||
Other income | 9 | 7 | 3,375 | 0 | ||||||||||||
Total investment income | 451,248 | 1,634,889 | 4,565,188 | 94,498 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 383,566 | 642,259 | 690,698 | 43,963 | ||||||||||||
Distribution fees — Retail Class | 135,544 | 228,983 | 344,647 | 13,176 | ||||||||||||
Transfer agent and shareholder reporting costs | 30,842 | 48,406 | 72,895 | 8,959 | ||||||||||||
Custodian fees | 12,368 | 16,638 | 9,962 | 4,041 | ||||||||||||
Directors fees and expenses | 8,378 | 14,073 | 21,485 | 870 | ||||||||||||
Professional fees | 9,747 | 16,276 | 24,501 | 1,016 | ||||||||||||
Registration and filing fees | 4,155 | 4,593 | 5,210 | 3,365 | ||||||||||||
Other operating expenses | 1,540 | 2,899 | 5,393 | 163 | ||||||||||||
Total expenses | 586,140 | 974,127 | 1,174,791 | 75,553 | ||||||||||||
Less: Waiver from adviser | 0 | 0 | 0 | (6,014 | ) | |||||||||||
Net expenses | 586,140 | 974,127 | 1,174,791 | 69,539 | ||||||||||||
NET INVESTMENT INCOME (LOSS) | (134,892 | ) | 660,762 | 3,390,397 | 24,959 | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||
Net realized gain (loss) on investments | 9,636,286 | 12,496,745 | (1,772,442 | ) | 506,417 | |||||||||||
Net change in unrealized gain (loss) on investments | (366,249 | ) | (2,795,320 | ) | 7,650,313 | 149,582 | ||||||||||
NET GAIN ON INVESTMENTS | 9,270,037 | 9,701,425 | 5,877,871 | 655,999 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 9,135,145 | $ | 10,362,187 | $ | 9,268,268 | $ | 680,958 | ||||||||
See Notes to Financial Statements | 31 |
Table of Contents
ADVANCE CAPITAL I, INC.
STATEMENTS OF CHANGES IN NET ASSETS
EQUITY GROWTH FUND | BALANCED FUND | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Six months | Year | Six months | Year | |||||||||||||
ended | ended | ended | ended | |||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | (134,892 | ) | $ | 54,038 | $ | 660,762 | $ | 2,640,237 | |||||||
Net realized gain on investments | 9,636,286 | 6,408,078 | 12,496,745 | 5,386,768 | ||||||||||||
Net change in unrealized gain (loss) on investments | (366,249 | ) | 17,959,931 | (2,795,320 | ) | 17,382,482 | ||||||||||
Net increase in net assets resulting from operations | 9,135,145 | 24,422,047 | 10,362,187 | 25,409,487 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Retail shares | 0 | (53,948 | ) | (1,331,587 | ) | (4,009,697 | ) | |||||||||
Institutional shares | 0 | (90 | ) | (2,733 | ) | (3,547 | ) | |||||||||
Total distributions to shareholders | 0 | (54,038 | ) | (1,334,320 | ) | (4,013,244 | ) | |||||||||
Share Transactions: | ||||||||||||||||
Retail shares | ||||||||||||||||
Net proceeds from sale of shares | 1,962,075 | 3,892,855 | 9,940,824 | 11,194,452 | ||||||||||||
Reinvestment of distributions | 0 | 52,744 | 1,306,737 | 3,939,643 | ||||||||||||
Cost of shares reacquired | (12,286,791 | ) | (18,943,431 | ) | (24,564,087 | ) | (41,435,593 | ) | ||||||||
Net change | (10,324,716 | ) | (14,997,832 | ) | (13,316,526 | ) | (26,301,498 | ) | ||||||||
Institutional shares | ||||||||||||||||
Net proceeds from sale of shares | 1,316,813 | 153,482 | 302,211 | 0 | ||||||||||||
Reinvestment of distributions | 0 | 90 | 1,360 | 2 | ||||||||||||
Cost of shares reacquired | (215,275 | ) | (154,982 | ) | (26,527 | ) | 0 | |||||||||
Net change | 1,101,538 | (1,410 | ) | 277,044 | 2 | |||||||||||
Net decrease derived from share transactions | (9,223,178 | ) | (14,999,242 | ) | (13,039,482 | ) | (26,301,496 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 108,470,069 | 99,101,302 | 184,358,690 | 189,263,943 | ||||||||||||
End of period | $ | 108,382,036 | $ | 108,470,069 | $ | 180,347,075 | $ | 184,358,690 | ||||||||
NUMBER OF SHARES | ||||||||||||||||
Retail shares | ||||||||||||||||
Sold | 79,016 | 193,658 | 609,955 | 758,499 | ||||||||||||
Shares issued from reinvestment of distributions | 0 | 2,235 | 78,698 | 271,968 | ||||||||||||
Reacquired | (495,529 | ) | (951,662 | ) | (1,499,809 | ) | (2,852,127 | ) | ||||||||
Net change | (416,513 | ) | (755,769 | ) | (811,156 | ) | (1,821,660 | ) | ||||||||
Institutional shares | ||||||||||||||||
Sold | 54,772 | 7,840 | 18,560 | 0 | ||||||||||||
Shares issued from reinvestment of distributions | 0 | 4 | 82 | 0 | ||||||||||||
Reacquired | (8,925 | ) | (7,849 | ) | (1,603 | ) | 0 | |||||||||
Net change | 45,847 | (5 | ) | 17,039 | 0 | |||||||||||
Net decrease in shares outstanding | (370,666 | ) | (755,774 | ) | (794,117 | ) | (1,821,660 | ) | ||||||||
Outstanding: | ||||||||||||||||
Beginning of year | 4,595,524 | 5,351,298 | 11,648,457 | 13,470,117 | ||||||||||||
End of period | 4,224,858 | 4,595,524 | 10,854,340 | 11,648,457 | ||||||||||||
32 | See Notes to Financial Statements |
Table of Contents
ADVANCE CAPITAL I, INC.
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
RETIREMENT INCOME FUND | CORE EQUITY FUND | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Six months | Year | Six months | Year | |||||||||||||
ended | ended | ended | ended | |||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 3,390,397 | $ | 11,748,392 | $ | 24,959 | $ | 55,988 | ||||||||
Net realized gain (loss) on investments | (1,772,442 | ) | (431,648 | ) | 506,417 | 170,261 | ||||||||||
Net change in unrealized gain on investments | 7,650,313 | 13,981,258 | 149,582 | 1,170,191 | ||||||||||||
Net increase in net assets resulting from operations | 9,268,268 | 25,298,002 | 680,958 | 1,396,440 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Net investment income | ||||||||||||||||
Retail shares | (5,574,295 | ) | (15,207,664 | ) | 0 | (53,821 | ) | |||||||||
Institutional shares | (12,053 | ) | (81,074 | ) | 0 | (2,167 | ) | |||||||||
Total distributions to shareholders | (5,586,348 | ) | (15,288,738 | ) | 0 | (55,988 | ) | |||||||||
Share Transactions: | ||||||||||||||||
Retail shares | ||||||||||||||||
Net proceeds from sale of shares | 6,265,889 | 17,373,301 | 766,143 | 1,449,599 | ||||||||||||
Reinvestment of distributions | 5,440,380 | 14,863,465 | 0 | 47,884 | ||||||||||||
Cost of shares reacquired | (37,997,591 | ) | (69,364,004 | ) | (2,055,535 | ) | (1,882,946 | ) | ||||||||
Net change | (26,291,322 | ) | (37,127,238 | ) | (1,289,392 | ) | (385,463 | ) | ||||||||
Institutional shares | ||||||||||||||||
Net proceeds from sale of shares | 0 | 1,112,000 | 377,773 | 0 | ||||||||||||
Reinvestment of distributions | 0 | 0 | 0 | 2,167 | ||||||||||||
Cost of shares reacquired | 0 | (2,278,575 | ) | (200,000 | ) | 0 | ||||||||||
Net change | 0 | (1,166,575 | ) | 177,773 | 2,167 | |||||||||||
Net decrease derived from share transactions | (26,291,322 | ) | (38,293,813 | ) | (1,111,619 | ) | (383,296 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 292,728,483 | 321,013,032 | 11,103,772 | 10,146,616 | ||||||||||||
End of period | $ | 270,119,081 | $ | 292,728,483 | $ | 10,673,111 | $ | 11,103,772 | ||||||||
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME | $ | 0 | $ | 0 | $ | 24,959 | $ | 0 | ||||||||
NUMBER OF SHARES | ||||||||||||||||
Retail shares | ||||||||||||||||
Sold | 731,931 | 2,039,793 | 74,466 | 161,409 | ||||||||||||
Shares issued from reinvestment of distributions | 635,553 | 1,746,759 | 0 | 4,891 | ||||||||||||
Reacquired | (4,456,480 | ) | (8,168,331 | ) | (198,892 | ) | (209,221 | ) | ||||||||
Net change | (3,088,996 | ) | (4,381,779 | ) | (124,426 | ) | (42,921 | ) | ||||||||
Institutional shares | ||||||||||||||||
Sold | 0 | 132,585 | 36,905 | 0 | ||||||||||||
Shares issued from reinvestment of distributions | 0 | 0 | 0 | 220 | ||||||||||||
Reacquired | 0 | (268,517 | ) | (19,820 | ) | 0 | ||||||||||
Net change | 0 | (135,932 | ) | 17,085 | 220 | |||||||||||
Net decrease in shares outstanding | (3,088,996 | ) | (4,517,711 | ) | (107,341 | ) | (42,701 | ) | ||||||||
Outstanding: | ||||||||||||||||
Beginning of year | 34,497,921 | 39,015,632 | 1,133,650 | 1,176,351 | ||||||||||||
End of period | 31,408,925 | 34,497,921 | 1,026,309 | 1,133,650 | ||||||||||||
See Notes to Financial Statements | 33 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. ORGANIZATION OF THE COMPANY
Advance Capital I, Inc. (the “COMPANY”) is a Maryland Corporation organized on March 6, 1987 that commenced operations on August 5, 1987. The COMPANY is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company (a mutual fund) offering shares in the following portfolios: Equity Growth Fund, Balanced Fund, Retirement Income Fund and the Core Equity Fund (collectively the “Funds”). Advance Capital Management, Inc. (“MANAGEMENT” or “Adviser”) (a wholly owned subsidiary of Advance Capital Group, Inc.) is the COMPANY’s investment adviser.
The Funds offer Retail Class shares and Institutional Class shares, each of which has equal rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. The two share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
Under the COMPANY’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
Note 2. ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.
The following is a summary of significant accounting policies followed by the COMPANY.
Security Valuation
Equity securities for which exchange quotations are readily available are valued at the last quoted market price at the time the valuations are made and debt securities are valued using prices furnished by an independent third party pricing service. The independent third party pricing service may use a matrix, formula or other objective method that considers the effect of market indices, yield curves and other specific adjustments to determine market price. When reliable market quotations are not readily available or are considered unreliable, securities are priced at their fair value, determined according to procedures adopted by the Board of Directors, which may include using an independent pricing service. Fair value procedures may also be used if the COMPANY determines that a significant event has occurred between the time at which a market price is determined but prior to the time at which a fund’s net asset value is calculated. Money market instruments or short-term debt held by the Funds with a remaining maturity of sixty days or less are valued at amortized cost which approximates value.
Fair Value Measurement
As described above, the Funds utilize various methods to measure the fair value of their investments on a recurring basis. Generally accepted accounting principles (“GAAP”) establish a hierarchy that prioritizes inputs to valuation methods.
34
Table of Contents
Note 2. ACCOUNTING POLICIES (Continued)
The three levels of the fair value hierarchy are described below:
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments.) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value each Fund’s investments as of June 30, 2011:
Equity | Balanced | Retirement | Core | |||||||||||||
Valuation Inputs | Growth Fund | Fund | Income Fund | Equity Fund | ||||||||||||
Level 1 - Quoted Prices: | ||||||||||||||||
Common Stock* | $ | 107,187,646 | $ | 113,575,224 | $ | 27,445,400 | $ | 10,396,060 | ||||||||
Short-term Investments | 104,924 | 826,604 | 3,425,052 | 259,605 | ||||||||||||
Level 2 - Other Significant | ||||||||||||||||
Observable Inputs: | ||||||||||||||||
Fixed Income Securities* | 0 | 63,864,786 | 235,606,681 | 0 | ||||||||||||
Level 3 - Significant | ||||||||||||||||
Unobservable Inputs: | ||||||||||||||||
Fixed Income Securities* | 0 | 0 | 0 | 0 | ||||||||||||
Total Value of Investments | $ | 107,292,570 | $ | 178,266,614 | $ | 266,477,133 | $ | 10,655,665 | ||||||||
* | Please refer to the Schedule of Investments to view common stock and fixed income securities segregated by industry type. |
The following is a reconciliation of the Level 3 investments in fixed income securities for the period ended June 30, 2011:
Equity | Balanced | Retirement | Core | |||||||||||||
Valuation Inputs | Growth Fund | Fund | Income Fund | Equity Fund | ||||||||||||
Balance as of 12/31/10 | $ | 0 | $ | 0 | $ | 578,950 | $ | 0 | ||||||||
Accrued discounts/premiums | 0 | 0 | 0 | 0 | ||||||||||||
Realized gain/loss | 0 | 0 | (1,005,654 | ) | 0 | |||||||||||
Change in unrealized appreciation (depreciation) | 0 | 0 | 530,129 | 0 | ||||||||||||
Net purchases (sales) | 0 | 0 | (103,425 | ) | 0 | |||||||||||
Transfers in to (out of) level 3 to level 2** | 0 | 0 | 0 | 0 | ||||||||||||
Balance as of 6/30/11 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
** | There were no transfers made into or out of any Levels during the period ending June 30, 2011. It is the Fund’s policy to consider transfers into or out of Level 1 and Level 2 as of the end of the reporting period. |
35
Table of Contents
Note 2. ACCOUNTING POLICIES (Continued)
Allocation of Income, Expenses, Gains and Losses
Income, fees and expenses of the COMPANY (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated on a daily basis to each class of shares or Fund based upon their relative net assets. Class-specific fees and expenses are charged directly to the respective share class. Fund-specific fees and expenses are charged directly to the respective Fund.
Federal Income Taxes
It is each Fund’s policy to meet the requirements to qualify each year as a registered investment company under Subchapter M of the Internal Revenue Code. Each Fund intends to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is provided. Capital losses are available to offset future capital gains, if any.
As of and during the period June 30, 2011, there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. During the period, the Funds did not incur any interest or penalties. The Funds are not subject to examination by U.S. federal tax authorities for tax years before 2007.
Dividends
Income dividends in the Balanced Fund and Retirement Income Fund are declared daily, except on Saturdays, Sundays and holidays and are paid monthly on the last business day of the month. Income dividends in the Equity Growth Fund and Core Equity Fund, if any, are declared annually and paid on the last business day of the year. Capital gain distributions, if any, are declared annually and paid in December. Dividends to shareholders are recorded on the ex-dividend date.
The amount of distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require a reclassification.
Other
Security transactions are accounted for on the trade date, the date the order to buy or sell is executed. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Premium and discount on fixed income securities are amortized using the effective interest method. Realized gains and losses on security transactions are determined on the specific identification method for book and tax purposes. Paydown gains and losses on mortgage-backed and asset-backed securities are recorded as adjustments to interest income in the Statement of Operations. Net investment losses, for which no carryover is permitted, are offset against paid in capital. MANAGEMENT has evaluated subsequent events through the date the financial statements were issued.
36
Table of Contents
Note 3. TRANSACTIONS WITH AFFILIATES
T. Rowe Price Associates, Inc. (“TRPA”) serves as sub-adviser for that portion of the portfolio of assets of the Equity Growth Fund and Balanced Fund which are determined by MANAGEMENT to be invested in common stocks. Seizert Capital Partners, LLC (“Seizert”) serves as sub-adviser for the Core Equity Fund. Advance Capital Services, Inc. (“SERVICES”) (also a wholly owned subsidiary of Advance Capital Group, Inc.) is the distributor of the COMPANY’s shares. Advance Capital Group, Inc. (“GROUP”) is the COMPANY’s Administrator, Transfer Agent and Dividend Disbursing Agent. For services provided by MANAGEMENT, the COMPANY pays a fee on an annual basis equal to .70% of the average daily net assets for the first $500 million and .65% of the average daily net assets exceeding $500 million of the Equity Growth and Balanced Funds and .50% of the average daily net assets for the first $500 million and .45% of the average daily net assets exceeding $500 million of the Retirement Income Fund and .80% of the average daily net assets of the Core Equity Fund. For its services, TRPA is paid a fee by MANAGEMENT on an annual basis equal to .20% of the average daily net assets of the Equity Growth Fund and that portion of the Balanced Fund invested in common stocks for the first $100 million of assets managed and .15% of the average daily net assets exceeding $100 million. For its services, Seizert is paid a fee by MANAGEMENT on an annual basis equal to .40% of the average daily net assets of the Core Equity Fund. GROUP provides administrative, transfer agent and dividend disbursing agent services to the COMPANY. The COMPANY will compensate SERVICES for expenses incurred in connection with the distribution of Retail Class shares of the Equity Growth, Balanced Retirement Income and Core Equity, at .25% of each fund’s average daily net assets.
The COMPANY was charged investment advisory fees of $1,760,486 by MANAGEMENT for the six months ended June 30, 2011. The COMPANY was charged distribution fees of $722,350 by SERVICES for Retail Class shares for the six months ended June 30, 2011.
Certain officers and directors of GROUP, MANAGEMENT, and SERVICES, are also officers and directors of the COMPANY. Director’s fees are only paid to independent directors and consist of a $18,000 annual retainer. The Chairman of the Board receives an additional 50% in compensation.
Note 4. NOTE RECEIVABLE FROM ADVISER
During October 2008, the COMPANY determined it had incorrectly valued the securities purchased with the cash collateral received from the securities lending program resulting in an overstatement of net assets. Reimbursements to the funds impacted by this error are represented as receivables from the Adviser. The receivables were established as unsecured promissory notes. The terms of the notes include payment over 7 years at an interest rate of 3.5% above the prime rate (prime rate at June 30, 2011:3.25%), reset from time to time as the prime rate changes, with interest and principal payable over 84 monthly installments. The effective date of the notes is January 1, 2009. The notes may be repaid in full or in part at any time without penalty. On December 31, 2010, MANAGEMENT made an additional lump sum payment towards the principal balance of the notes.
37
Table of Contents
Note 5. INVESTMENT PORTFOLIO TRANSACTIONS
The cost of purchases and proceeds from sales of investments, other than short-term obligations and U.S. Government securities, for the six months ended June 30, 2011 were as follows:
Equity | Retirement | Core | ||||||||||||||
Growth Fund | Balanced Fund | Income Fund | Equity Fund | |||||||||||||
Purchases | $ | 25,028,985 | $ | 47,001,004 | $ | 67,194,057 | $ | 1,981,315 | ||||||||
Sales | 33,104,605 | 58,810,506 | 94,876,799 | 3,111,001 |
At June 30, 2011, the gross unrealized net appreciation and depreciation of securities for financial reporting purposes consisted of the following:
Equity | Retirement | Core | ||||||||||||||
Growth Fund | Balanced Fund | Income Fund | Equity Fund | |||||||||||||
Unrealized Appreciation | $ | 27,617,314 | $ | 27,461,391 | $ | 12,584,764 | $ | 1,565,693 | ||||||||
Unrealized Depreciation | (4,571,384 | ) | (2,646,334 | ) | (1,441,012 | ) | (274,108 | ) | ||||||||
Net Unrealized Appreciation | $ | 23,045,930 | $ | 24,815,057 | $ | 11,143,752 | $ | 1,291,585 |
Note 6. AUTHORIZED SHARES
The COMPANY has one billion authorized shares of common stock, par value of $.001 per share. Each of the COMPANY’s four portfolios has 150 million shares authorized for Retail Class shares and 100 million shares authorized for Institutional Class shares.
Note 7. FEDERAL INCOME TAX INFORMATION
The tax characteristics of distributions paid to shareholders during the period ended June 30, 2011 and the year ended December 31, 2010 were as follows:
Distributions | Total | |||||||||||||||
Six months ended | Paid from | Long Term | Return of | Distributions | ||||||||||||
June 30, 2011 | Ordinary Income | Capital Gain | Capital | Paid | ||||||||||||
Equity Growth Fund | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Balanced Fund | 1,334,320 | 0 | 0 | 1,334,320 | ||||||||||||
Retirement Income Fund | 5,586,348 | 0 | 0 | 5,586,348 | ||||||||||||
Core Equity Fund | 0 | 0 | 0 | 0 |
Distributions | Total | |||||||||||||||
Year ended | Paid from | Long Term | Return of | Distributions | ||||||||||||
December 31, 2010 | Ordinary Income | Capital Gain | Capital | Paid | ||||||||||||
Equity Growth Fund | $ | 54,038 | $ | 0 | $ | 0 | $ | 54,038 | ||||||||
Balanced Fund | 4,013,244 | 0 | 0 | 4,013,244 | ||||||||||||
Retirement Income Fund | 15,288,738 | 0 | 0 | 15,288,738 | ||||||||||||
Core Equity Fund | 55,988 | 0 | 0 | 55,988 |
38
Table of Contents
ADDITIONAL INFORMATION (UNAUDITED)
RESULTS OF ANNUAL SHAREHOLDER VOTE
An Annual Meeting of Shareholders of the COMPANY was held at the Sheraton Detroit Novi, 21111 Haggerty Road, Novi, Michigan, on August 5, 2011, for the following purposes:
1. | To elect five Directors to hold office until the next Annual Meeting of Shareholders or until their successors have been elected and qualified. |
Directors Elected at Meeting | Votes For | |||
Joseph A. Ahern | 24,382,919 | |||
Susan E. Burns | 24,302,692 | |||
Robert J. Cappelli | 24,372,389 | |||
Janice E. Loichle | 24,323,275 | |||
Thomas L. Saeli | 24,390,728 |
2. | To ratify the selection of Cohen Fund Audit Services, Ltd. as independent registered public accountants of the COMPANY for the fiscal year ending December 31, 2011. |
Votes For: | 24,280,959 | |||
Votes Against: | 58,649 | |||
Votes to Abstain: | 405,986 |
MANAGEMENT OF THE FUND
Advance Capital I, Inc. is managed by a Board of Directors. The Directors are responsible for managing the company’s business affairs and for exercising all the company’s powers except those reserved for the shareholders. Officers and Directors of the COMPANY, their addresses, and principal occupations during the last five years, are as follows:
Number of | Other | |||||||||||||
Position(s) & | Year | Principal Occupations | Portfolios | Directorships | ||||||||||
Name and Address | Office(s) | Elected* | During past 5 Years | Overseen | Held** | |||||||||
“INTERESTED” DIRECTORS*** | ||||||||||||||
Robert J. Cappelli One Towne Square Suite 444 Southfield, MI 48076 Age 59 | Director and President Treasurer | 2004 1987 | President and Treasurer, Advance Capital I, Inc. and Advance Capital Group, Inc.; Vice President & Treasurer, Advance Capital Services, Inc. and Advance Capital Management, Inc. | 4 | None | |||||||||
“NOT-INTERESTED” DIRECTORS | ||||||||||||||
Joseph A. Ahern One Towne Square Suite 444 Southfield, MI 48076 Age 53 | Director Independent Chairman | 1995 2005 | Attorney; President and Shareholder; Ahern Fluery since March 2009; Attorney; President and Shareholder; Stark, Reagan, P.C., from prior to 2005 until March 2009 (law firms) | 4 | None | |||||||||
Susan E. Burns One Towne Square Suite 444 Southfield, MI 48076 Age 49 | Director | 2008 | President, St. John Health Foundation since July 2008; President, Wayne State University Foundation and Vice President, Development and Alumni Affairs from prior to 2005 until July 2008 | 4 | None |
39
Table of Contents
MANAGEMENT OF THE FUND (Continued)
Number of | Other | |||||||||||||
Position(s) & | Year | Principal Occupations | Portfolios | Directorships | ||||||||||
Name and Address | Office(s) | Elected* | During past 5 Years | Overseen | Held** | |||||||||
Janice E. Loichle One Towne Square Suite 444 Southfield, MI 48076 Age 63 | Director | 2001 | Retired; Former Vice President, Chief Integration Officer and Chief of Local Exchange Operations, XO Communications, Inc. (formerly NEXTLINK Communications); President, NEXTLINK Solutions (telecommunications) | 4 | None | |||||||||
Thomas L. Saeli One Towne Square Suite 444 Southfield, MI 48076 Age 54 | Director | 2000 | Chief Executive Officer, JRB Enterprises, Inc. since March 2011 (manufacturing); Chief Executive Officer, Noble International, Ltd., from March 2006 to April 2009; Vice President-Corporate Development, Lear Corporation, from prior to 2005 until March 2006 (automotive suppliers) | 4 | Noble International, Ltd. (2006 to 2009); Ultralife Corporation (2010 to date) | |||||||||
OTHER OFFICERS | ||||||||||||||
Christopher M. Kostiz One Towne Square Suite 444 Southfield, MI 48076 Age 43 | Vice President | 2003 | Vice President, Advance Capital I, Inc.; President and Senior Portfolio Manager, Advance Capital Management, Inc. | 4 | None | |||||||||
Kathy J. Harkleroad One Towne Square Suite 444 Southfield, MI 48076 Age 58 | Vice President, Chief Compliance Officer and Secretary | 1996 | Vice President, Chief Compliance Officer and Secretary, Advance Capital I, Inc. and Advance Capital Group, Inc.; Marketing Director, Advance Capital Services, Inc. | 4 | None | |||||||||
Julie A. Katynski One Towne Square Suite 444 Southfield, MI 48076 Age 45 | Vice President and Assistant Secretary | 2003 | Vice President and Assistant Secretary, Advance Capital I, Inc.; Vice President — Finance, Advance Capital Group, Inc.; Controller, Advance Capital Group, Inc. | 4 | None |
* | There is no set term of office for Directors and Officers. The Independent Directors have adopted a retirement policy, which calls for the retirement of Directors in the year in which they reach the age of 70. | |
** | This column includes only directorships of companies required to register or file reports with the Commission under the Securities Exchange Act of 1934 (that is, “public companies”) or other investment companies registered under the 1940 Act. | |
*** | Officers of the Funds are “interested persons” as defined in the Investment Company Act of 1940. |
40
Table of Contents
EXPENSE EXAMPLES:
As a shareholder of the Funds, you incur ongoing costs, including management fees; distribution (and/or service) 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2011 through June 30, 2011.
ACTUAL EXPENSES
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Beginning | Ending | Expense Paid | Expense Ratio | |||||||||||||
Account Value | Account Value | During Period* | During Period | |||||||||||||
1/1/11 | 6/30/11 | 1/1/11 - 6/30/11 | 1/1/11 - 6/30/11 | |||||||||||||
Equity Growth Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,086.90 | $ | 5.48 | 1.06 | % | ||||||||
Institutional shares | 1,000.00 | 1,089.30 | 4.25 | 0.82 | % | |||||||||||
Balanced Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,057.40 | $ | 5.36 | 1.05 | % | ||||||||
Institutional shares | 1,000.00 | 1,058.20 | 4.13 | 0.81 | % | |||||||||||
Retirement Income Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,033.40 | $ | 4.24 | 0.84 | % | ||||||||
Institutional shares | 1,000.00 | 1,035.90 | 3.03 | 0.60 | % | |||||||||||
Core Equity Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,061.30 | $ | 6.49 | 1.27 | % | ||||||||
Institutional shares | 1,000.00 | 1,062.80 | 5.22 | 1.02 | % |
* | Expenses are equal to the average account value times each Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
41
Table of Contents
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about the hypothetical values and hypothetical expenses based on each Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning | Ending | Expense Paid | Expense Ratio | |||||||||||||
Account Value | Account Value | During Period* | During Period | |||||||||||||
1/1/11 | 6/30/11 | 1/1/11 - 6/30/11 | 1/1/11 - 6/30/11 | |||||||||||||
Equity Growth Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,019.54 | $ | 5.31 | 1.06 | % | ||||||||
Institutional shares | 1,000.00 | 1,020.73 | 4.11 | 0.82 | % | |||||||||||
Balanced Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,019.59 | $ | 5.26 | 1.05 | % | ||||||||
Institutional shares | 1,000.00 | 1,020.78 | 4.06 | 0.81 | % | |||||||||||
Retirement Income Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,020.63 | $ | 4.21 | 0.84 | % | ||||||||
Institutional shares | 1,000.00 | 1,021.82 | 3.01 | 0.60 | % | |||||||||||
Core Equity Fund | ||||||||||||||||
Retail shares | $ | 1,000.00 | $ | 1,018.50 | $ | 6.36 | 1.27 | % | ||||||||
Institutional shares | 1,000.00 | 1,019.74 | 5.11 | 1.02 | % |
* | Expenses are equal to the average account value times each Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
PROXY VOTING
The policies and procedures that Advance Capital I, Inc. uses to determine how to vote proxies relating to portfolio securities is available on the SEC’s website at www.sec.gov. Information on how the Funds voted proxies relating to portfolio securities during the 12 month period ended June 30, 2011 is available at (1) without charge, upon request, by calling (800) 345-4783, and (2) on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of its portfolio holdings as of the close of the first and third quarters of its fiscal year, on “Form N-Q”. These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) This information is also available without charge, upon request, by calling (800) 345-4783.
42
Table of Contents
(This page intentionally left blank)
Table of Contents
(This page intentionally left blank)
Table of Contents
Advance Capital I, Inc.
Investment Advisor:
Advance Capital Management, Inc.
One Towne Square, Suite 444
Southfield, Michigan 48076
Advance Capital Management, Inc.
One Towne Square, Suite 444
Southfield, Michigan 48076
Sub-Advisors:
(Equity Growth and Balanced Funds)
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
(Equity Growth and Balanced Funds)
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
(Core Equity Fund)
Seizert Capital Partners, LLC
185 West Oakland
Birmingham, MI 48009
Seizert Capital Partners, LLC
185 West Oakland
Birmingham, MI 48009
Distributor:
Advance Capital Services, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Advance Capital Services, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Administrator and Transfer Agent:
Advance Capital Group, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Advance Capital Group, Inc.
P.O. Box 3144
Southfield, Michigan 48037
Custodian:
Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Officers:
Robert J. Cappelli, President & Treasurer
Christopher M. Kostiz, Vice President
Kathy J. Harkleroad, Vice President,
Chief Compliance Officer & Secretary
Julie A. Katynski, Vice President & Assistant Secretary
Robert J. Cappelli, President & Treasurer
Christopher M. Kostiz, Vice President
Kathy J. Harkleroad, Vice President,
Chief Compliance Officer & Secretary
Julie A. Katynski, Vice President & Assistant Secretary
Board of Directors:
Joseph A. Ahern
Susan E. Burns
Robert J. Cappelli
Janice E. Loichle
Thomas L. Saeli
Joseph A. Ahern
Susan E. Burns
Robert J. Cappelli
Janice E. Loichle
Thomas L. Saeli
Semi-Annual Report
June 30, 2011
AN INVESTMENT COMPANY
WITH FOUR FUNDS
WITH FOUR FUNDS
Equity Growth Fund
Balanced Fund
Retirement Income Fund
Core Equity Fund
Balanced Fund
Retirement Income Fund
Core Equity Fund
Table of Contents
Item 2. Code of Ethics.
Not applicable for the semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for the semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for the semi-annual report.
Item 5. Audit Committee of Listed Registrant.
Not applicable because registrant’s shares are not listed for trading on a national securities exchange.
Item 6. Schedule of Investments.
Schedule I — Investments in securities of unaffiliated issuers is included as part of the report to shareholders filed under Item I of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-end Management Investment Companies.
Not applicable for open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable for open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in its reports filed or submitted under the Investment Company Act of 1940, as amended (the “1940 Act”),
Table of Contents
is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management to allow timely decisions regarding required disclosures. The Company’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective, based on their evaluation of the disclosure controls and procedures as of June 30, 2011, a date that is within 90 days of the filing date of this report.
(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) Certification pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ADVANCE CAPITAL I, INC.
By: | /s/ Robert J. Cappelli | |||
President & Treasurer |
Date: August 31, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities on the dates indicated.
By: | /s/ Robert J. Cappelli | |||
President & Treasurer | ||||
Date: August 31, 2011 | ||||
By: | /s/ Christopher M. Kostiz | |||
Vice President |
Date: August 31, 2011