- -----------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
TARGET FUND ACQUIRING FUND Pro Forma
% of MGC CLM Combined Fund
Net Shares/ Market Shares/ Market Shares/ Market
Assets Par Value ($) Par Value Par Value ($)
------------------------------------------------------------------------------------------
EQUITY SECURITIES 94.38%
CLOSED-END DOMESTIC FUNDS - 1.73%
Adams Express Co. 0.46% 49,500 614,295 49,500 614,295
General American
Investor Co. Inc. 0.23% 10,500 312,165 10,500 312,165
Salomon Brothers Fund,
Inc. (The) 0.16% 18,400 221,352 18,400 221,352
Tri-Continental Corp. 0.47% 39,000 639,600 39,000 639,600
Zweig Fund, Inc. 0.40% 110,400 540,960 110,400 540,960
----------- -----------
2,328,372 2,328,372
CONSUMER DISCRETIONARY - 13.73%
Bed Bath & Beyond Inc. * 0.03% 1,000 43,350 1,000 43,350
Best Buy Co., Inc. 0.04% 1,000 52,240 1,000 52,240
Carnival Corp. 0.06% 2,100 83,433 2,100 83,433
Carter's, Inc.* 0.05% 2,500 63,625 2,500 63,625
Clear Channel
Communications, Inc. 0.07% 2,100 98,343 2,100 98,343
Comcast Corp., Class A * 0.09% 3,882 127,601 3,882 127,601
Costco Wholesale Corp. * 0.04% 1,500 55,770 1,500 55,770
CVS Corp. 0.04% 1,500 54,180 1,500 54,180
Delphi Corp. 0.02% 2,000 20,420 2,000 20,420
Ford Motor Co. 0.08% 6,500 104,000 6,500 104,000
Fortune Brands, Inc. 0.05% 1,000 71,490 1,000 71,490
Furniture Brands
International, Inc. 2.18% 100,100 2,935,933 100,100 2,935,933
Gannett Co., Inc. 0.07% 1,000 89,160 1,000 89,160
Gap, Inc. (The) 0.05% 2,700 62,667 2,700 62,667
General Motors Corp. 0.08% 1,900 101,460 1,900 101,460
Gildan Activewear Inc.,
Class A* 1.18% 51,500 1,590,320 51,500 1,590,320
Goodyear Tire & Rubber
Co. (The) * 0.01% 2,500 19,650 2,500 19,650
Harley-Davidson, Inc. 0.04% 1,000 47,530 1,000 47,530
Hilton Hotels Corp. 0.02% 1,500 25,695 1,500 25,695
Home Depot, Inc. (The) 0.16% 6,100 216,489 6,100 216,489
Kohl's Corp. * 0.03% 1,000 44,940 1,000 44,940
-1-
Lowe's Companies, Inc. 0.10% 2,500 138,475 2,500 138,475
Marriott International,
Inc., Class A 0.03% 1,000 46,200 1,000 46,200
Martek Biosciences Corp.* 1.47% 30,500 1,981,585 30,500 1,981,585
May Department Stores Co.
(The) 0.02% 1,000 29,070 1,000 29,070
McDonald's Corp. 0.04% 2,100 52,143 2,100 52,143
Multimedia Games, Inc.* 1.31% 43,000 1,767,300 43,000 1,767,300
NIKE, Inc., Class B 0.05% 1,000 68,460 1,000 68,460
Omnicom Group Inc. 0.06% 1,000 87,330 1,000 87,330
Reebok International Ltd. 0.04% 1,500 58,980 1,500 58,980
Staples, Inc. * 0.03% 1,500 40,950 1,500 40,950
Starbucks Corp. * 0.03% 1,200 39,672 1,200 39,672
Target Corp. 0.09% 3,200 122,880 3,200 122,880
The Cheesecake Factory Inc.* 1.23% 37,700 1,659,931 37,700 1,659,931
Thor Industries, Inc. 1.20% 28,800 1,619,136 28,800 1,619,136
Time Warner Inc. * 0.14% 10,500 188,895 10,500 188,895
Tractor Supply Company* 0.55% 19,200 746,688 19,200 746,688
United Natural Foods, Inc.* 2.11% 79,200 2,844,072 79,200 2,844,072
Viacom Inc., non-voting
Class B 0.20% 6,000 266,280 6,000 266,280
Wal-Mart Stores, Inc. 0.52% 13,300 705,565 13,300 705,565
Walt Disney Co. (The) 0.08% 4,700 109,651 4,700 109,651
Yum! Brands, Inc. * 0.03% 1,000 34,400 1,000 34,400
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15,208,590 3,307,369 18,515,959
CONSUMER STAPLES - 4.71%
Albertson's, Inc. 0.04% 2,500 56,625 2,500 56,625
Altria Group, Inc. 0.20% 4,900 266,658 4,900 266,658
Anheuser-Busch Companies,
Inc. 0.09% 2,200 115,896 2,200 115,896
Archer-Daniels-Midland Co. 0.03% 2,415 36,756 2,415 36,756
Coca-Cola Co. (The) 0.24% 6,500 329,875 6,500 329,875
Colgate-Palmolive Co. 0.04% 1,000 50,050 1,000 50,050
ConAgra Foods, Inc. 0.04% 1,900 50,141 1,900 50,141
General Mills, Inc. 0.08% 2,500 113,250 2,500 113,250
Gillette Co. (The) 0.07% 2,600 95,498 2,600 95,498
Kimberly-Clark Corp. 0.04% 900 53,181 900 53,181
Kroger Co. (The) * 0.05% 3,500 64,785 3,500 64,785
Panera Bread Co. Class A* 1.24% 42,300 1,672,119 42,300 1,672,119
PepsiCo, Inc. 0.18% 5,100 237,762 5,100 237,762
Performance Food Group Co.* 1.05% 39,300 1,421,481 39,300 1,421,481
Philadelphia Suburban Corp. 0.87% 53,077 1,173,002 53,077 1,173,002
Procter & Gamble Co. (The) 0.28% 3,800 379,544 3,800 379,544
Sysco Corp. 0.09% 3,300 122,859 3,300 122,859
Walgreen Co. 0.09% 3,200 116,416 3,200 116,416
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4,266,602 2,089,296 6,355,898
-2-
ENERGY - 5.26%
Anadarko Petroleum Corp. 0.03% 900 45,909 900 45,909
Baker Hughes Inc. 0.06% 2,500 80,400 2,500 80,400
CenterPoint Energy, Inc. 0.02% 2,500 24,225 2,500 24,225
ChevronTexaco Corp. 0.21% 3,340 288,543 3,340 288,543
ConocoPhillips 0.08% 1,728 113,305 1,728 113,305
Exxon Mobil Corp. 0.58% 19,000 779,000 19,000 779,000
FMC Technologies, Inc.* 1.83% 105,800 2,465,140 105,800 2,465,140
Reliant Resources, Inc. * 0.01% 1,971 14,506 1,971 14,506
Schlumberger Ltd. 0.08% 2,000 109,440 2,000 109,440
Ultra Petroleum Corp.* 1.47% 80,300 1,976,986 80,300 1,976,986
Western Gas Resources, Inc. 0.89% 25,400 1,200,150 25,400 1,200,150
------------- ----------- -----------
5,642,276 1,455,328 7,097,604
FINANCIALS - 10.70%
Affiliated Managers Group,
Inc.* 2.08% 40,400 2,811,436 40,400 2,811,436
AFLAC Inc. 0.05% 1,900 68,742 1,900 68,742
Allstate Corp. (The) 0.08% 2,500 107,550 2,500 107,550
American Express Co. 0.11% 3,000 144,690 3,000 144,690
American International Group,
Inc. 0.44% 9,042 599,304 9,042 599,304
Bank of America Corp. 0.23% 3,900 313,677 3,900 313,677
Bank of New York Co., Inc. (The) 0.06% 2,500 82,800 2,500 82,800
Bank One Corp. 0.09% 2,600 118,534 2,600 118,534
BB&T Corp. 0.05% 1,600 61,824 1,600 61,824
Charles Schwab Corp. (The) 0.02% 2,500 29,600 2,500 29,600
Citigroup Inc. 0.47% 13,100 635,874 13,100 635,874
Direct General Corp. 1.01% 41,000 1,357,100 41,000 1,357,100
Fannie Mae 0.12% 2,200 165,132 2,200 165,132
Fifth Third Bancorp 0.09% 2,000 118,200 2,000 118,200
First Niagara Financial Group, Inc. 0.93% 84,000 1,252,440 84,000 1,252,440
FleetBoston Financial Corp. 0.08% 2,400 104,760 2,400 104,760
Freddie Mac 0.11% 2,500 145,800 2,500 145,800
Goldman Sachs Group, Inc. (The) 0.10% 1,300 128,349 1,300 128,349
HSBC Holdings plc, ADR 0.06% 963 75,904 963 75,904
J. P. Morgan Chase & Co. 0.16% 6,000 220,380 6,000 220,380
Marsh & McLennan Companies, Inc. 0.14% 4,000 191,560 4,000 191,560
MBNA Corp. 0.06% 3,000 74,550 3,000 74,550
Mellon Financial Corp. 0.04% 1,800 57,798 1,800 57,798
Merrill Lynch & Co., Inc. 0.09% 2,000 117,300 2,000 117,300
MetLife, Inc. 0.07% 2,700 90,909 2,700 90,909
-3-
Morgan Stanley 0.15% 3,500 202,545 3,500 202,545
National City Corp. 0.06% 2,200 74,668 2,200 74,668
National Financial Partners Corp. 0.83% 40,500 1,115,775 40,500 1,115,775
Platinum Underwriters Holdings, Ltd. 1.62% 72,600 2,178,000 72,600 2,178,000
PNC Financial Services Group 0.04% 1,100 60,203 1,100 60,203
Prudential Financial, Inc. 0.08% 2,500 104,425 2,500 104,425
Scottish Re Group Ltd. 0.35% 22,900 475,862 22,900 475,862
State Street Corp. 0.04% 1,000 52,080 1,000 52,080
SunTrust Banks, Inc. 0.06% 1,100 78,650 1,100 78,650
The First Marblehead Corp. * 0.20% 12,600 275,688 12,600 275,688
Travelers Property Casualty Corp.,
Class A 0.01% 738 12,383 738 12,383
Travelers Property Casualty Corp.,
Class B 0.02% 1,517 25,743 1,517 25,743
U.S. Bancorp 0.09% 4,200 125,076 4,200 125,076
Wachovia Corp. 0.12% 3,600 167,724 3,600 167,724
Washington Mutual, Inc. 0.09% 3,150 126,378 3,150 126,378
Wells Fargo & Co. 0.21% 4,800 282,672 4,800 282,672
------------- ----------- -----------
------------- ----------- -----------
9,466,301 4,965,784 14,432,085
HEALTHCARE - 12.44%
Abbott Laboratories 0.14% 4,000 186,400 4,000 186,400
Amgen Inc. * 0.16% 3,500 216,300 3,500 216,300
Baxter International Inc. 0.06% 2,500 76,300 2,500 76,300
Boston Scientific Corp. * 0.08% 3,000 110,280 3,000 110,280
Bristol-Myers Squibb Co. 0.10% 4,500 128,700 4,500 128,700
Cardinal Health, Inc. 0.05% 1,000 61,160 1,000 61,160
Cooper Companies, Inc 2.10% 60,000 2,827,800 60,000 2,827,800
Edwards Lifesciences 2.01% 89,900 2,704,192 89,900 2,704,192
Eli Lilly & Co. 0.16% 3,000 210,990 3,000 210,990
HCA Inc. 0.06% 2,000 85,920 2,000 85,920
HEALTHSOUTH Corp. * 0.01% 2,500 11,450 2,500 11,450
IDEXX Laboratories, Inc.* 1.25% 36,400 1,684,592 36,400 1,684,592
Integra Lifesciences Holdings* 1.69% 79,500 2,276,085 79,500 2,276,085
Johnson & Johnson 0.29% 7,500 387,450 7,500 387,450
McKesson Corp. 0.02% 1,000 32,160 1,000 32,160
Medco Health Solutions, Inc. * 0.02% 723 24,575 723 24,575
Medtronic, Inc. 0.16% 4,300 209,023 4,300 209,023
Merck & Co. Inc. 0.21% 6,000 277,200 6,000 277,200
Neurocrine Biosciences, Inc. * 1.28% 31,700 1,728,918 31,700 1,728,918
NPS Pharmaceuticals, Inc.* 1.82% 80,000 2,459,200 80,000 2,459,200
Pfizer Inc. 0.54% 20,500 724,265 20,500 724,265
Schering-Plough Corp. 0.03% 2,500 43,475 2,500 43,475
UnitedHealth Group Inc. 0.13% 3,000 174,540 3,000 174,540
Wyeth 0.10% 3,300 140,085 3,300 140,085
------------- ----------- -----------
13,680,787 3,100,273 16,781,060
-4-
INDUSTRIALS - 12.81%
3M Co. 0.13% 2,000 170,060 2,000 170,060
Automatic Data Processing, Inc. 0.06% 2,000 79,220 2,000 79,220
Boeing Co. (The) 0.09% 3,000 126,420 3,000 126,420
Caterpillar Inc. 0.08% 1,300 107,926 1,300 107,926
Cendant Corp. * 0.04% 2,700 60,129 2,700 60,129
Central Freight Lines, Inc.* 0.04% 3,300 58,575 3,300 58,575
Compass Minerals International, Inc.* 0.56% 52,700 752,556 52,700 752,556
Concord EFS, Inc. * 0.03% 2,500 37,100 2,500 37,100
DSP Group, Inc.* 2.51% 135,600 3,377,796 135,600 3,377,796
EDO Corp. 1.03% 56,500 1,392,725 56,500 1,392,725
Emerson Electric Co. 0.07% 1,500 97,125 1,500 97,125
FedEx Corp. 0.05% 1,000 67,500 1,000 67,500
General Electric Co. 0.67% 29,000 898,420 29,000 898,420
Heartland Express, Inc. 1.12% 62,337 1,507,932 62,337 1,507,932
Honeywell International Inc. 0.07% 2,800 93,604 2,800 93,604
Illinois Tool Works Inc. 0.06% 1,000 83,910 1,000 83,910
Lockheed Martin Corp. 0.06% 1,500 77,100 1,500 77,100
Masco Corp. 0.03% 1,700 46,597 1,700 46,597
Overnight Corp.* 0.09% 5,600 127,400 5,600 127,400
Paychex, Inc. 0.07% 2,500 93,000 2,500 93,000
Quanta Services, Inc.* 0.38% 70,000 511,000 70,000 511,000
Shuffle Master, Inc.* 1.88% 73,400 2,541,108 73,400 2,541,108
Southwest Airlines Co. 0.03% 2,700 43,578 2,700 43,578
Swift Transportation Co., Inc.* 1.05% 67,100 1,410,442 67,100 1,410,442
Transocean Inc. * 0.04% 2,500 60,025 2,500 60,025
Tyco International Ltd. 0.14% 7,000 185,500 7,000 185,500
Union Pacific Corp. 0.05% 1,000 69,480 1,000 69,480
United Parcel Service, Inc., Class B 0.19% 3,500 260,925 3,500 260,925
United Technologies Corp. 0.12% 1,700 161,109 1,700 161,109
Universal Technical Institute Inc.* 0.18% 8,200 246,000 8,200 246,000
USF Corp. 1.84% 72,600 2,482,194 72,600 2,482,194
Waste Management, Inc. 0.04% 1,700 50,320 1,700 50,320
------------- ----------- -----------
14,407,728 2,869,048 17,276,776
INFORMATION TECHNOLOGY - 22.81%
Agere Systems Inc., Class A * 0.00% 115 351 115 351
Agere Systems Inc., Class B * 0.01% 2,830 8,207 2,830 8,207
Agilent Technologies, Inc. 0.04% 1,800 52,632 1,800 52,632
-5-
Altera Corp. * 0.03% 1,500 34,050 1,500 34,050
Analog Devices, Inc. 0.03% 1,000 45,650 1,000 45,650
Applied Films Corp 1.52% 62,000 2,047,240 62,000 2,047,240
Applied Materials, Inc. * 0.05% 2,900 65,105 2,900 65,105
Avocent Corporation 1.91% 70,500 2,574,660 70,500 2,574,660
Caci International Inc. Class A 1.95% 54,100 2,630,342 54,100 2,630,342
Callidus Software* 0.04% 3,300 58,376 3,300 58,376
Cisco Systems, Inc. * 0.30% 16,900 410,501 16,900 410,501
Corning Inc. * 0.02% 3,000 31,290 3,000 31,290
Dell Inc. * 0.16% 6,500 220,740 6,500 220,740
Electronic Data Systems Corp. 0.02% 1,000 24,540 1,000 24,540
EMC Corp. * 3.48% 355,830 4,597,324 7,000 90,440 362,830 4,687,764
Enterasys Networks, Inc.* 1.56% 562,100 2,107,875 562,100 2,107,875
Equinix, Inc.* 0.35% 16,500 465,300 16,500 465,300
Fairchild Semiconductor
International, Inc.* 3.73% 201,600 5,033,952 201,600 5,033,952
First Data Corp. 0.15% 5,000 205,450 5,000 205,450
Harris Interactive Inc.* 0.94% 152,200 1,263,260 152,200 1,263,260
Hewlett-Packard Co. 0.13% 7,800 179,166 7,800 179,166
Intel Corp. 0.47% 19,500 627,900 19,500 627,900
International Business Machines Corp. 0.37% 5,400 500,472 5,400 500,472
ITT Educational Services, Inc.* 1.44% 41,200 1,935,164 41,200 1,935,164
Linear Technology Corp. 0.03% 1,000 42,070 1,000 42,070
Maxim Integrated Products, Inc. 0.04% 1,000 49,800 1,000 49,800
Micron Technology, Inc. * 0.02% 2,500 33,675 2,500 33,675
Microsoft Corp. 0.62% 30,200 831,708 30,200 831,708
Motorola, Inc. 0.07% 6,600 92,862 6,600 92,862
Oracle Corp. * 0.12% 12,300 162,360 12,300 162,360
QUALCOMM Inc. 0.10% 2,500 134,825 2,500 134,825
Sanmina-SCI Corp. * 0.02% 2,500 31,525 2,500 31,525
Siebel Systems, Inc. * 0.03% 2,500 34,675 2,500 34,675
Skyworks Solutions, Inc.* 1.16% 179,100 1,558,170 179,100 1,558,170
Solectron Corp. * 0.01% 3,000 17,730 3,000 17,730
Sun Microsystems, Inc. * 0.02% 7,500 33,675 7,500 33,675
Texas Instruments Inc. 0.11% 4,900 143,962 4,900 143,962
Yahoo! Inc. * 0.06% 1,900 85,823 1,900 85,823
Zoran Corp.* 1.70% 131,750 2,291,133 131,750 2,291,133
------------- ----------- -----------
26,562,795 4,191,184 30,753,979
MATERIALS - 8.94%
Air Products & Chemicals, Inc. 0.04% 1,000 52,830 1,000 52,830
Alcoa Inc. 0.09% 3,100 117,800 3,100 117,800
Dow Chemical Co. (The) 0.08% 2,700 112,239 2,700 112,239
-6-
E. I. du Pont de Nemours & Co. 0.07% 2,200 100,958 2,200 100,958
General Cable Corp.* 0.75% 124,200 1,012,230 124,200 1,012,230
Georgia-Pacific Corp. 0.02% 1,000 30,670 1,000 30,670
International Paper Co. 0.06% 2,000 86,220 2,000 86,220
Joy Global Inc. 2.21% 114,100 2,983,715 114,100 2,983,715
Packaging Corp of America 2.10% 129,600 2,833,056 129,600 2,833,056
Peabody Energy Corp. 2.07% 67,000 2,794,570 67,000 2,794,570
Praxair, Inc. 0.08% 3,000 114,600 3,000 114,600
Steel Dynamics, Inc.* 1.29% 74,300 1,745,307 74,300 1,745,307
Weyerhaeuser Co. 0.05% 1,000 64,000 1,000 64,000
------------- ----------- -----------
11,368,878 679,317 12,048,195
TELECOMMUNICATION SERVICES - 0.83%
AT&T Corp. 0.04% 2,400 48,720 2,400 48,720
AT&T Wireless Services Inc. * 0.03% 4,522 36,131 4,522 36,131
BellSouth Corp. 0.14% 6,500 183,950 6,500 183,950
Journal Communications, Inc. 0.16% 12,000 222,360 12,000 222,360
Lucent Technologies Inc. * 0.02% 10,700 30,388 10,700 30,388
SBC Communications Inc. 0.05% 2,500 70,150 2,500 70,150
Sprint Corp. (FON Group) 0.15% 7,900 205,953 7,900 205,953
Sprint Corp. (PCS Group) * 0.04% 3,000 49,260 3,000 49,260
Verizon Communications Inc. 0.21% 7,900 277,132 7,900 277,132
------------- ----------- -----------
222,360 901,684 1,124,044
UTILITIES - 0.41%
American Electric Power Co., Inc. 0.03% 1,200 36,612 1,200 36,612
Dominion Resources, Inc. 0.05% 1,000 63,830 1,000 63,830
Duke Energy Corp. 0.04% 2,800 57,260 2,800 57,260
Edison International * 0.04% 2,500 54,825 2,500 54,825
FirstEnergy Corp. 0.07% 2,500 88,000 2,500 88,000
Scottish Power plc, ADR 0.08% 4,000 108,720 4,000 108,720
Southern Co. (The) 0.05% 2,400 72,600 2,400 72,600
TXU Corp. 0.02% 1,000 23,720 1,000 23,720
Xcel Energy, Inc. 0.03% 2,500 42,450 2,500 42,450
------------- ----------- -----------
0 548,017 548,017
TOTAL EQUITY SECURITIES 94.38% 100,826,318 26,435,672 127,261,990
------------- ----------- -----------
SHORT-TERM INVESTMENTS - 25.03%
REPURCHASE AGREEMENTS - 25.03%
Bear, Stearns & Co. Inc. 5.83% 7,867,525 7,867,525 7,867,525 7,867,525
(Agreement dated 12/31/03 to be
repurchased at $7,867,897)
0.85%, 01/02/04
-7-
Bear, Stearns & Co. Inc. 17.70% 23,869,214 23,869,214 23,869,214 23,869,214
(Agreement dated 12/31/03 to be
repurchased at $23,870,620)
1.06%**, 01/02/04***
Bear, Stearns & Co. Inc. 1.02% 1,380,273 1,380,273 1,380,273 1,380,273
(Agreement dated 12/31/03 to be
repurchased at $1,380,345)
0.94%**, 01/02/04***
Bear, Stearns & Co. Inc. 0.10% 139,977 139,977 139,977 139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%, 01/02/04
Bear, Stearns & Co. Inc. 0.32% 425,588 425,588 425,588 425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 0.05% 65,644 65,644 65,644 65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**, 01/02/04 ***
------------- ----------- -----------
TOTAL SHORT-TERM INVESTMENTS 25.03% 33,117,012 631,209 33,748,221
------------- ----------- -----------
TOTAL INVESTMENTS AT MARKET 119.41% 133,943,330 27,066,881 161,010,211
------------- ----------- -----------
TOTAL INVESTMENTS AT COST 108,743,027 24,952,427 133,695,454
------------- ----------- -----------
-8-
@ No adjustments are shown to the unaudited pro forma combined portfolio of
investments due to the fact that upon consummation of the merger,
securities would need to be sold in order for Acquiring Fund to comply
with its prospectus restrictions. The foregoing sentence shall not
restrict in any way the ability of the investment adviser of any of the
funds from buying or selling securities in the normal course of such
fund's business and operations.
* Non-income producing securities
-9-
- --------------------------------------------------------------------------------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
TARGET FUND ACQUIRING FUND Pro Forma
% of PGF CLM Combined Fund
Net Shares/ Market Shares/ Market Shares/ Market
Assets Par Value ($) Par Value Par Value ($)
------------------------------------------------------------------------------------------
EQUITY SECURITIES 99.51%
CLOSED-END DOMESTIC FUNDS - 6.23%
Adams Express Co. 1.17% 49,500 614,295 49,500 614,295
General American Investor Co. Inc. 0.59% 10,500 312,165 10,500 312,165
Salomon Brothers Fund, Inc. (The) 0.42% 18,400 221,352 18,400 221,352
Tri-Continental Corp. 2.40% 38,000 623,200 39,000 639,600 77,000 1,262,800
Zweig Fund, Inc. 1.64% 66,200 324,380 110,400 540,960 176,600 865,340
----------- ---------- ----------
947,580 2,328,372 3,275,952
CONSUMER DISCRETIONARY - 12.92%
Bed Bath & Beyond Inc. * 0.08% 1,000 43,350 1,000 43,350
Best Buy Co., Inc. 0.22% 1,250 65,300 1,000 52,240 2,250 117,540
Carnival Corp. 0.36% 2,700 107,271 2,100 83,433 4,800 190,704
Circuit City Stores, Inc. 0.02% 1,000 10,130 1,000 10,130
Clear Channel Communications, Inc. 0.43% 2,700 126,441 2,100 98,343 4,800 224,784
Comcast Corp., Class A * 0.47% 3,655 120,140 3,882 127,601 7,537 247,741
Comcast Corp., Special Class A* 0.24% 4,100 128,248 4,100 128,248
Costco Wholesale Corp. * 0.11% 1,500 55,770 1,500 55,770
CVS Corp. 0.17% 1,000 36,120 1,500 54,180 2,500 90,300
Delphi Corp. 0.09% 2,600 26,546 2,000 20,420 4,600 46,966
Eastman Kodak Co. 0.07% 1,400 35,938 1,400 35,938
Federated Department Stores, Inc. 0.09% 1,000 47,130 1,000 47,130
Ford Motor Co. 0.37% 5,800 92,800 6,500 104,000 12,300 196,800
Fortune Brands, Inc. 0.14% 1,000 71,490 1,000 71,490
Gannett Co., Inc. 0.17% 1,000 89,160 1,000 89,160
Gap, Inc. (The) 0.23% 2,500 58,025 2,700 62,667 5,200 120,692
General Motors Corp. 0.46% 2,600 138,840 1,900 101,460 4,500 240,300
Goodyear Tire & Rubber Co. (The) * 0.04% 2,500 19,650 2,500 19,650
Harley-Davidson, Inc. 0.22% 1,400 66,542 1,000 47,530 2,400 114,072
Hilton Hotels Corp. 0.10% 1,700 29,121 1,500 25,695 3,200 54,816
Home Depot, Inc. (The) 0.92% 7,500 266,175 6,100 216,489 13,600 482,664
Kohl's Corp. * 0.17% 1,000 44,940 1,000 44,940 2,000 89,880
Limited Brands 0.09% 2,500 45,075 2,500 45,075
-10-
Lowe's Companies, Inc. 0.53% 2,500 138,475 2,500 138,475 5,000 276,950
Marriott International, Inc., Class A 0.18% 1,100 50,820 1,000 46,200 2,100 97,020
Mattel, Inc. 0.05% 1,500 28,905 1,500 28,905
May Department Stores Co. (The) 0.13% 1,400 40,698 1,000 29,070 2,400 69,768
McDonald's Corp. 0.29% 4,000 99,320 2,100 52,143 6,100 151,463
Monsanto Co. 0.03% 580 16,692 580 16,692
NIKE, Inc., Class B 0.30% 1,300 88,998 1,000 68,460 2,300 157,458
Omnicom Group Inc. 0.27% 600 52,398 1,000 87,330 1,600 139,728
Reebok International Ltd. 0.11% 1,500 58,980 1,500 58,980
Sears, Roebuck & Co. 0.14% 1,600 72,784 1,600 72,784
Staples, Inc. * 0.16% 1,500 40,950 1,500 40,950 3,000 81,900
Starbucks Corp. * 0.18% 1,700 56,202 1,200 39,672 2,900 95,874
Target Corp. 0.35% 1,600 61,440 3,200 122,880 4,800 184,320
Time Warner Inc. * 0.85% 14,250 256,358 10,500 188,895 24,750 445,253
TJX Companies, Inc. (The) 0.10% 2,500 55,125 2,500 55,125
Toys "R" Us, Inc.* 0.02% 1,000 12,640 1,000 12,640
Viacom Inc., non-voting Class B 0.96% 5,400 239,652 6,000 266,280 11,400 505,932
Wal-Mart Stores, Inc. 2.45% 11,000 583,550 13,300 705,565 24,300 1,289,115
Walt Disney Co. (The) 0.50% 6,500 151,645 4,700 109,651 11,200 261,296
Yum! Brands, Inc. * 0.07% 1,000 34,400 1,000 34,400
----------- ----------- -----------
3,491,434 3,307,369 6,798,803
CONSUMER STAPLES - 7.86%
Albertson's, Inc. 0.11% 2,500 56,625 2,500 56,625
Altria Group, Inc. 0.96% 4,400 239,448 4,900 266,658 9,300 506,106
Anheuser-Busch Companies, Inc. 0.47% 2,500 131,700 2,200 115,896 4,700 247,596
Archer-Daniels-Midland Co. 0.16% 3,045 46,345 2,415 36,756 5,460 83,101
Campbell Soup Co. 0.10% 2,000 53,600 2,000 53,600
Coca-Cola Co. (The) 1.23% 6,300 319,725 6,500 329,875 12,800 649,600
Coca-Cola Enterprises Inc. 0.06% 1,500 32,805 1,500 32,805
Colgate-Palmolive Co. 0.20% 1,100 55,055 1,000 50,050 2,100 105,105
ConAgra Foods, Inc. 0.22% 2,500 65,975 1,900 50,141 4,400 116,116
General Mills, Inc. 0.22% 2,500 113,250 2,500 113,250
Gillette Co. (The) 0.39% 3,000 110,190 2,600 95,498 5,600 205,688
H.J. Heinz Co. 0.11% 1,600 58,288 1,600 58,288
Kimberly-Clark Corp. 0.38% 2,500 147,725 900 53,181 3,400 200,906
Kroger Co. (The) * 0.17% 1,300 24,063 3,500 64,785 4,800 88,848
Pepsi Bottling Group, Inc. 0.05% 1,000 24,180 1,000 24,180
PepsiCo, Inc. 0.81% 4,000 186,480 5,100 237,762 9,100 424,242
Procter & Gamble Co. (The) 1.29% 3,000 299,640 3,800 379,544 6,800 679,184
Safeway Inc.* 0.10% 2,500 54,775 2,500 54,775
Sara Lee Corp. 0.05% 1,300 28,223 1,300 28,223
Sysco Corp. 0.41% 2,500 93,075 3,300 122,859 5,800 215,934
Walgreen Co. 0.37% 2,100 76,398 3,200 116,416 5,300 192,814
----------- ----------- -----------
2,047,690 2,089,296 4,136,986
-11-
ENERGY - 5.79%
Anadarko Petroleum Corp. 0.20% 1,200 61,212 900 45,909 2,100 107,121
Baker Hughes Inc. 0.22% 1,100 35,376 2,500 80,400 3,600 115,776
CenterPoint Energy, Inc. 0.07% 1,400 13,566 2,500 24,225 3,900 37,791
ChevronTexaco Corp. 1.26% 4,325 373,637 3,340 288,543 7,665 662,180
ConocoPhillips 0.53% 2,509 164,515 1,728 113,305 4,237 277,820
El Paso Corp. 0.04% 2,500 20,475 2,500 20,475
Exxon Mobil Corp. 2.77% 16,500 676,500 19,000 779,000 35,500 1,455,500
Marathon Oil Corp. 0.09% 1,500 49,635 1,500 49,635
Reliant Resources, Inc. * 0.04% 1,104 8,125 1,971 14,506 3,075 22,631
Schlumberger Ltd. 0.48% 2,600 142,272 2,000 109,440 4,600 251,712
Unocal Corp. 0.08% 1,200 44,196 1,200 44,196
----------- -----------
1,589,509 1,455,328 3,044,837
FINANCIALS - 19.16%
AFLAC Inc. 0.31% 2,600 94,068 1,900 68,742 4,500 162,810
Allstate Corp. (The) 0.47% 3,300 141,966 2,500 107,550 5,800 249,516
American Express Co. 0.65% 4,100 197,743 3,000 144,690 7,100 342,433
American International Group, Inc. 1.89% 5,989 396,951 9,042 599,304 15,031 996,255
Aon Corp. 0.05% 1,200 28,728 1,200 28,728
Bank of America Corp. 1.25% 4,300 345,849 3,900 313,677 8,200 659,526
Bank of New York Co., Inc. (The) 0.37% 3,400 112,608 2,500 82,800 5,900 195,408
Bank One Corp. 0.47% 2,800 127,652 2,600 118,534 5,400 246,186
BB&T Corp. 0.12% 1,600 61,824 1,600 61,824
Charles Schwab Corp. (The) 0.14% 3,500 41,440 2,500 29,600 6,000 71,040
Citigroup Inc. 2.41% 13,000 631,020 13,100 635,874 26,100 1,266,894
Fannie Mae 0.53% 1,500 112,590 2,200 165,132 3,700 277,722
Fifth Third Bancorp 0.45% 2,000 118,200 2,000 118,200 4,000 236,400
FleetBoston Financial Corp. 0.54% 4,100 178,965 2,400 104,760 6,500 283,725
Franklin Resources, Inc. 0.12% 1,200 62,472 1,200 62,472
Freddie Mac 0.45% 1,600 93,312 2,500 145,800 4,100 239,112
Goldman Sachs Group, Inc. (The) 0.53% 1,500 148,095 1,300 128,349 2,800 276,444
Hartford Financial Services Group,
Inc. (The) 0.11% 1,000 59,030 1,000 59,030
HSBC Holdings plc, ADR 0.34% 1,337 105,382 963 75,904 2,300 181,286
J. P. Morgan Chase & Co. 0.85% 6,200 227,726 6,000 220,380 12,200 448,106
John Hancock Financial Services, Inc. 0.18% 2,500 93,750 2,500 93,750
Lehman Brothers Holdings Inc. 0.16% 1,100 84,942 1,100 84,942
Marsh & McLennan Companies, Inc. 0.60% 2,600 124,514 4,000 191,560 6,600 316,074
MBNA Corp. 0.24% 2,100 52,185 3,000 74,550 5,100 126,735
Mellon Financial Corp. 0.26% 2,500 80,275 1,800 57,798 4,300 138,073
-12-
Merrill Lynch & Co., Inc. 0.64% 3,700 217,005 2,000 117,300 5,700 334,305
MetLife, Inc. 0.40% 3,500 117,845 2,700 90,909 6,200 208,754
Morgan Stanley 0.66% 2,500 144,675 3,500 202,545 6,000 347,220
National City Corp. 0.30% 2,500 84,850 2,200 74,668 4,700 159,518
Northern Trust Corp. 0.09% 1,000 46,420 1,000 46,420
PNC Financial Services Group 0.11% 1,100 60,203 1,100 60,203
Prudential Financial, Inc. 0.20% 2,500 104,425 2,500 104,425
St. Paul Companies, Inc. (The) 0.08% 1,000 39,650 1,000 39,650
State Street Corp. 0.10% 1,000 52,080 1,000 52,080
SunTrust Banks, Inc. 0.15% 1,100 78,650 1,100 78,650
Travelers Property Casualty Corp.,
Class A 0.05% 712 11,947 738 12,383 1,450 24,330
Travelers Property Casualty Corp.,
Class B 0.10% 1,464 24,844 1,517 25,743 2,981 50,587
U.S. Bancorp 0.59% 6,201 184,666 4,200 125,076 10,401 309,742
UnumProvident Corp. 0.03% 1,100 17,347 1,100 17,347
Wachovia Corp. 0.58% 3,000 139,770 3,600 167,724 6,600 307,494
Washington Mutual, Inc. 0.45% 2,800 112,336 3,150 126,378 5,950 238,714
Wells Fargo & Co. 1.14% 5,400 318,006 4,800 282,672 10,200 600,678
----------- ----------- -----------
5,118,824 4,965,784 10,084,608
HEALTHCARE - 12.28%
Abbott Laboratories 0.62% 3,000 139,800 4,000 186,400 7,000 326,200
Allergan, Inc. 0.15% 1,000 76,810 1,000 76,810
Amgen Inc. * 0.92% 4,300 265,740 3,500 216,300 7,800 482,040
Baxter International Inc. 0.31% 2,800 85,456 2,500 76,300 5,300 161,756
Becton, Dickinson & Co. 0.09% 1,200 49,368 1,200 49,368
Boston Scientific Corp. * 0.35% 2,000 73,520 3,000 110,280 5,000 183,800
Bristol-Myers Squibb Co. 0.59% 6,400 183,040 4,500 128,700 10,900 311,740
Cardinal Health, Inc. 0.34% 1,950 119,262 1,000 61,160 2,950 180,422
Eli Lilly & Co. 0.78% 2,800 196,924 3,000 210,990 5,800 407,914
Guidant Corp. 0.16% 1,400 84,280 1,400 84,280
HCA Inc. 0.29% 1,500 64,440 2,000 85,920 3,500 150,360
HEALTHSOUTH Corp. * 0.04% 1,800 8,244 2,500 11,450 4,300 19,694
Johnson & Johnson 1.47% 7,500 387,450 7,500 387,450 15,000 774,900
McKesson Corp. 0.14% 1,300 41,808 1,000 32,160 2,300 73,968
Medco Health Solutions, Inc. * 0.11% 964 32,766 723 24,575 1,687 57,341
Medtronic, Inc. 0.77% 4,000 194,440 4,300 209,023 8,300 403,463
Merck & Co. Inc. 1.01% 5,500 254,100 6,000 277,200 11,500 531,300
Pfizer Inc. 2.71% 19,860 701,654 20,500 724,265 40,360 1,425,919
Schering-Plough Corp. 0.22% 4,200 73,038 2,500 43,475 6,700 116,513
Tenet Heathcare Corp. * 0.07% 2,250 36,113 2,250 36,113
UnitedHealth Group Inc. 0.55% 2,000 116,360 3,000 174,540 5,000 290,900
Wyeth 0.61% 4,200 178,290 3,300 140,085 7,500 318,375
----------- ----------- -----------
3,362,903 3,100,273 6,463,176
-13-
INDUSTRIALS - 11.06%
3M Co. 0.71% 2,400 204,072 2,000 170,060 4,400 374,132
Automatic Data Processing, Inc. 0.37% 2,900 114,869 2,000 79,220 4,900 194,089
Boeing Co. (The) 0.45% 2,600 109,564 3,000 126,420 5,600 235,984
Caterpillar Inc. 0.46% 1,600 132,832 1,300 107,926 2,900 240,758
Cendant Corp. * 0.25% 3,300 73,491 2,700 60,129 6,000 133,620
Concord EFS, Inc. * 0.14% 2,500 37,100 2,500 37,100 5,000 74,200
CSX Corp. 0.07% 1,000 35,940 1,000 35,940
Emerson Electric Co. 0.43% 2,000 129,500 1,500 97,125 3,500 226,625
FedEx Corp. 0.26% 1,000 67,500 1,000 67,500 2,000 135,000
General Dynamics Corp. 0.10% 600 54,234 600 54,234
General Electric Co. 3.25% 26,200 811,676 29,000 898,420 55,200 1,710,096
Honeywell International Inc. 0.30% 2,000 66,860 2,800 93,604 4,800 160,464
Illinois Tool Works Inc. 0.38% 1,400 117,474 1,000 83,910 2,400 201,384
IMS Health Inc. 0.07% 1,400 34,804 1,400 34,804
Lockheed Martin Corp. 0.39% 2,500 128,500 1,500 77,100 4,000 205,600
Masco Corp. 0.22% 2,500 68,525 1,700 46,597 4,200 115,122
Paychex, Inc. 0.30% 1,700 63,240 2,500 93,000 4,200 156,240
Raytheon Co. 0.09% 1,600 48,064 1,600 48,064
Southwest Airlines Co. 0.20% 3,750 60,525 2,700 43,578 6,450 104,103
Transocean Inc. * 0.11% 2,500 60,025 2,500 60,025
Tyco International Ltd. 0.67% 6,397 169,521 7,000 185,500 13,397 355,021
Union Pacific Corp. 0.26% 1,000 69,480 1,000 69,480 2,000 138,960
United Parcel Service, Inc., Class B 0.85% 2,500 186,375 3,500 260,925 6,000 447,300
United Technologies Corp. 0.49% 100 94,770 1,700 161,109 1,800 255,879
Waste Management, Inc. 0.24% 2,500 74,000 1,700 50,320 4,200 124,320
----------- ----------- -----------
2,952,916 2,869,048 5,821,964
INFORMATION TECHNOLOGY - 16.21%
Adobe Systems Inc. 0.08% 1,100 43,230 1,100 43,230
Agere Systems Inc., Class A * 0.00% 125 381 115 351 240 732
Agere Systems Inc., Class B * 0.03% 3,068 8,897 2,830 8,207 5,898 17,104
Agilent Technologies, Inc. 0.18% 1,500 43,860 1,800 52,632 3,300 96,492
Altera Corp. * 0.15% 1,900 43,130 1,500 34,050 3,400 77,180
Analog Devices, Inc. 0.23% 1,700 77,605 1,000 45,650 2,700 123,255
Apple Computer, Inc. * 0.06% 1,500 32,055 1,500 32,055
Applied Materials, Inc. * 0.33% 4,900 110,005 2,900 65,105 7,800 175,110
Cisco Systems, Inc. * 1.68% 19,500 473,655 16,900 410,501 36,400 884,156
Computer Associates
International, Inc. 0.14% 2,700 73,818 2,700 73,818
Corning Inc. * 0.06% 3,000 31,290 3,000 31,290
Dell Inc. * 0.72% 4,700 159,612 6,500 220,740 11,200 380,352
Electronic Arts Inc. * 0.18% 2,000 95,560 2,000 95,560
-14-
Electronic Data Systems Corp. 0.16% 2,500 61,350 1,000 24,540 3,500 85,890
EMC Corp. * 0.28% 4,500 58,140 7,000 90,440 11,500 148,580
First Data Corp. 0.39% 5,000 205,450 5,000 205,450
Hewlett-Packard Co. 0.69% 8,100 186,057 7,800 179,166 15,900 365,223
Intel Corp. 2.27% 17,600 566,720 19,500 627,900 37,100 1,194,620
International Business Machines Corp. 1.92% 5,500 509,740 5,400 500,472 10,900 1,010,212
Linear Technology Corp. 0.20% 1,500 63,105 1,000 42,070 2,500 105,175
LSI Logic Corp. * 0.03% 1,500 13,305 1,500 13,305
Maxim Integrated Products, Inc. 0.22% 1,300 64,740 1,000 49,800 2,300 114,540
Micron Technology, Inc. * 0.13% 2,600 35,022 2,500 33,675 5,100 68,697
Microsoft Corp. 3.05% 28,100 773,874 30,200 831,708 58,300 1,605,582
Motorola, Inc. 0.37% 7,100 99,897 6,600 92,862 13,700 192,759
NVIDA Corp. * 0.04% 1,000 23,250 1,000 23,250
Oracle Corp. * 0.76% 17,800 234,960 12,300 162,360 30,100 397,320
QUALCOMM Inc. 0.41% 1,500 80,895 2,500 134,825 4,000 215,720
Sanmina-SCI Corp. * 0.06% 2,500 31,525 2,500 31,525
Siebel Systems, Inc. * 0.07% 2,500 34,675 2,500 34,675
Solectron Corp. * 0.08% 3,700 21,867 3,000 17,730 6,700 39,597
Sun Microsystems, Inc. * 0.15% 10,000 44,900 7,500 33,675 17,500 78,575
SunGard Data Systems, Inc. * 0.13% 2,500 69,275 2,500 69,275
Texas Instruments Inc. 0.58% 5,400 158,652 4,900 143,962 10,300 302,614
Yahoo! Inc. * 0.38% 2,500 112,925 1,900 85,823 4,400 198,748
----------- ----------- -----------
4,340,482 4,191,184 8,531,666
MATERIALS - 2.44%
Air Products & Chemicals, Inc. 0.10% 1,000 52,830 1,000 52,830
Alcoa Inc. 0.53% 4,200 159,600 3,100 117,800 7,300 277,400
Dow Chemical Co. (The) 0.43% 2,700 112,239 2,700 112,239 5,400 224,478
E. I. du Pont de Nemours & Co. 0.48% 3,300 151,437 2,200 100,958 5,500 252,395
Georgia-Pacific Corp. 0.12% 1,000 30,670 1,000 30,670 2,000 61,340
International Paper Co. 0.37% 2,500 107,775 2,000 86,220 4,500 193,995
Praxair, Inc. 0.22% 3,000 114,600 3,000 114,600
Rohm & Haas Co. 0.08% 1,000 42,710 1,000 42,710
Weyerhaeuser Co. 0.12% 1,000 64,000 1,000 64,000
----------- ----------- -----------
604,431 679,317 1,283,748
TELECOMMUNICATION SERVICES - 3.55%
ALLTEL Corp 0.13% 1,500 69,870 1,500 69,870
AT&T Corp. 0.18% 2,260 45,878 2,400 48,720 4,660 94,598
AT&T Wireless Services Inc. * 0.20% 8,534 68,187 4,522 36,131 13,056 104,318
BellSouth Corp. 0.67% 6,000 169,800 6,500 183,950 12,500 353,750
Lucent Technologies Inc. * 0.12% 11,600 32,944 10,700 30,388 22,300 63,332
Nextel Communications, Inc.,
Class A * 0.13% 2,500 70,150 2,500 70,150
SBC Communications Inc. 0.54% 8,200 213,774 2,500 70,150 10,700 283,924
Sprint Corp. (FON Group) 0.52% 4,000 65,680 7,900 205,953 11,900 271,633
Sprint Corp. (PCS Group) * 0.11% 1,800 10,116 3,000 49,260 4,800 59,376
Verizon Communications Inc. 0.94% 6,200 217,496 7,900 277,132 14,100 494,628
----------- ----------- -----------
963,895 901,684 1,865,579
-15-
UTILITIES - 2.01%
American Electric Power Co., Inc. 0.16% 1,500 45,765 1,200 36,612 2,700 82,377
Dominion Resources, Inc. 0.25% 1,100 70,213 1,000 63,830 2,100 134,043
Duke Energy Corp. 0.21% 2,500 51,125 2,800 57,260 5,300 108,385
Edison International * 0.17% 1,500 32,895 2,500 54,825 4,000 87,720
Exelon Corp. 0.19% 1,500 99,540 1,500 99,540
FirstEnergy Corp. 0.17% 2,500 88,000 2,500 88,000
FPL Group, Inc. 0.12% 1,000 65,420 1,000 65,420
Progress Energy, Inc. 0.09% 1,000 45,260 1,000 45,260
Public Service Enterprises Group Inc, 0.08% 1,000 43,800 1,000 43,800
Scottish Power plc, ADR 0.21% 4,000 108,720 4,000 108,720
Southern Co. (The) 0.14% 2,400 72,600 2,400 72,600
TXU Corp. 0.10% 1,200 28,464 1,000 23,720 2,200 52,184
Xcel Energy, Inc. 0.13% 1,600 27,168 2,500 42,450 4,100 69,618
----------- ----------- -----------
509,650 548,017 1,057,667
TOTAL EQUITY SECURITIES 99.51% 25,929,314 26,435,672 52,364,986
----------- ----------- -----------
SHORT-TERM INVESTMENTS - 2.30%
REPURCHASE AGREEMENTS - 2.30%
Bear, Stearns & Co. Inc. 0.26% 138,234 138,234 138,234 138,234
(Agreement dated 12/31/03 to
be repurchased at $138,241),
0.85%, 01/02/04
Bear, Stearns & Co. Inc. 0.83% 438,900 438,900 438,900 438,900
(Agreement dated 12/31/03 to
be repurchased at $438,926),
1.06%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 0.00% 2,278 2,278 2,278 2,278
(Agreement dated 12/31/03 to
be repurchased at $2,278),
0.94%**, 01/02/04 ***
-16-
Bear, Stearns & Co. Inc. 0.27% 139,977 139,977 139,977 139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%, 01/02/04
Bear, Stearns & Co. Inc. 0.81% 425,588 425,588 425,588 425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 0.12% 65,644 65,644 65,644 65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**, 01/02/04 ***
----------- ----------- -----------
TOTAL SHORT-TERM INVESTMENTS 2.30% 579,412 631,209 1,210,621
----------- ----------- -----------
TOTAL INVESTMENTS AT MARKET 101.81% 26,508,726 27,066,881 53,575,607
----------- ----------- -----------
TOTAL INVESTMENTS AT COST 29,716,897 24,952,427 54,669,324
----------- ----------- -----------
@ No adjustments are shown to the unaudited pro forma combined portfolio of
investments due to the fact that upon consummation of the merger,
securities would need to be sold in order for Acquiring Fund to comply
with its prospectus restrictions. The foregoing sentence shall not
restrict in any way the ability of the investment adviser of any of the
funds from buying or selling securities in the normal course of such
fund's business and operations.
* Non-income producing securities
** Stated interest rate, before rebate earned by borrower of securities on loan
*** Represents investment purchased with cash collateral received for securities
on loan.
ADR American Depositary Receipt
-17-
- ------------------------------------------------------------------------------------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
TARGET FUNDS ACQUIRING FUND Pro Forma
% of PGF MGC CLM Combined Fund
Net Shares/ Market Shares/ Market Shares/ Market Shares/ Market
Assets Par Value ($) Par Value ($) Par Value Par Value ($)
----------------------------------------------------------------------------------------------------
EQUITY SECURITIES 95.21%
CLOSED-END DOMESTIC FUNDS - 2.04%
Adams Express Co. 0.38% 49,500 614,295 49,500 614,295
General American
Investor Co. Inc. 0.19% 10,500 312,165 10,500 312,165
Salomon Brothers Fund,
Inc. (The) 0.14% 18,400 221,352 18,400 221,352
Tri-Continental Corp. 0.78% 38,000 623,200 39,000 639,600 77,000 1,262,800
Zweig Fund, Inc. 0.54% 66,200 324,380 110,400 540,960 176,600 865,340
---------- ------------ ---------- -------------
947,580 0 2,328,372 3,275,952
CONSUMER DISCRETIONARY - 13.68%
Bed Bath & Beyond Inc. * 0.03% 1,000 43,350 1,000 43,350
Best Buy Co., Inc. 0.07% 1,250 65,300 1,000 52,240 2,250 117,540
Carnival Corp. 0.12% 2,700 107,271 2,100 83,433 4,800 190,704
Carter's, Inc.* 0.04% 2,500 63,625 2,500 63,625
Circuit City Stores, Inc. 0.01% 1,000 10,130 1,000 10,130
Clear Channel
Communications, Inc. 0.14% 2,700 126,441 2,100 98,343 4,800 224,784
Comcast Corp., Class A * 0.15% 3,655 120,140 3,882 127,601 7,537 247,741
Comcast Corp., Special
Class A* 0.08% 4,100 128,248 4,100 128,248
Costco Wholesale Corp. * 0.03% 1,500 55,770 1,500 55,770
CVS Corp. 0.06% 1,000 36,120 1,500 54,180 2,500 90,300
Delphi Corp. 0.03% 2,600 26,546 2,000 20,420 4,600 46,966
Eastman Kodak Co. 0.02% 1,400 35,938 1,400 35,938
Federated Department
Stores, Inc. 0.03% 1,000 47,130 1,000 47,130
Ford Motor Co. 0.12% 5,800 92,800 6,500 104,000 12,300 196,800
Fortune Brands, Inc. 0.04% 1,000 71,490 1,000 71,490
Furniture Brands
International, Inc. 1.82% 100,100 2,935,933 100,100 2,935,933
Gannett Co., Inc. 0.06% 1,000 89,160 1,000 89,160
Gap, Inc. (The) 0.08% 2,500 58,025 2,700 62,667 5,200 120,692
General Motors Corp. 0.15% 2,600 138,840 1,900 101,460 4,500 240,300
Gildan Activewear Inc.,
Class A* 0.99% 51,500 1,590,320 51,500 1,590,320
Goodyear Tire & Rubber
Co. (The) * 0.01% 2,500 19,650 2,500 19,650
Harley-Davidson, Inc. 0.07% 1,400 66,542 1,000 47,530 2,400 114,072
Hilton Hotels Corp. 0.03% 1,700 29,121 1,500 25,695 3,200 54,816
-18-
Home Depot, Inc. (The) 0.30% 7,500 266,175 6,100 216,489 13,600 482,664
Kohl's Corp. * 0.06% 1,000 44,940 1,000 44,940 2,000 89,880
Limited Brands 0.03% 2,500 45,075 2,500 45,075
Lowe's Companies, Inc. 0.17% 2,500 138,475 2,500 138,475 5,000 276,950
Marriott International,
Inc., Class A 0.06% 1,100 50,820 1,000 46,200 2,100 97,020
Martek Biosciences Corp.* 1.23% 30,500 1,981,585 30,500 1,981,585
Mattel, Inc. 0.02% 1,500 28,905 1,500 28,905
May Department Stores Co.
(The) 0.04% 1,400 40,698 1,000 29,070 2,400 69,768
McDonald's Corp. 0.09% 4,000 99,320 2,100 52,143 6,100 151,463
Monsanto Co. 0.01% 580 16,692 580 16,692
Multimedia Games, Inc.* 1.10% 43,000 1,767,300 43,000 1,767,300
NIKE, Inc., Class B 0.10% 1,300 88,998 1,000 68,460 2,300 157,458
Omnicom Group Inc. 0.09% 600 52,398 1,000 87,330 1,600 139,728
Reebok International Ltd. 0.04% 1,500 58,980 1,500 58,980
Sears, Roebuck & Co. 0.05% 1,600 72,784 1,600 72,784
Staples, Inc. * 0.05% 1,500 40,950 1,500 40,950 3,000 81,900
Starbucks Corp. * 0.06% 1,700 56,202 1,200 39,672 2,900 95,874
Target Corp. 0.11% 1,600 61,440 3,200 122,880 4,800 184,320
The Cheesecake Factory Inc.* 1.03% 37,700 1,659,931 37,700 1,659,931
Thor Industries, Inc. 1.01% 28,800 1,619,136 28,800 1,619,136
Time Warner Inc. * 0.28% 14,250 256,358 10,500 188,895 24,750 445,253
TJX Companies, Inc. (The) 0.03% 2,500 55,125 2,500 55,125
Toys "R" Us, Inc.* 0.01% 1,000 12,640 1,000 12,640
Tractor Supply Company* 0.46% 19,200 746,688 19,200 746,688
United Natural Foods, Inc.* 1.77% 79,200 2,844,072 79,200 2,844,072
Viacom Inc., non-voting
Class B 0.31% 5,400 239,652 6,000 266,280 11,400 505,932
Wal-Mart Stores, Inc. 0.80% 11,000 583,550 13,300 705,565 24,300 1,289,115
Walt Disney Co. (The) 0.16% 6,500 151,645 4,700 109,651 11,200 261,296
Yum! Brands, Inc. * 0.02% 1,000 34,400 1,000 34,400
---------- ------------ ---------- -------------
3,491,434 15,208,590 3,307,369 22,007,393
CONSUMER STAPLES - 5.22%
Albertson's, Inc. 0.04% 2,500 56,625 2,500 56,625
Altria Group, Inc. 0.31% 4,400 239,448 4,900 266,658 9,300 506,106
Anheuser-Busch Companies,
Inc. 0.15% 2,500 131,700 2,200 115,896 4,700 247,596
Archer-Daniels-Midland Co. 0.05% 3,045 46,345 2,415 36,756 5,460 83,101
Campbell Soup Co. 0.03% 2,000 53,600 2,000 53,600
Coca-Cola Co. (The) 0.40% 6,300 319,725 6,500 329,875 12,800 649,600
Coca-Cola Enterprises Inc. 0.02% 1,500 32,805 1,500 32,805
Colgate-Palmolive Co. 0.07% 1,100 55,055 1,000 50,050 2,100 105,105
ConAgra Foods, Inc. 0.07% 2,500 65,975 1,900 50,141 4,400 116,116
General Mills, Inc. 0.07% 2,500 113,250 2,500 113,250
Gillette Co. (The) 0.13% 3,000 110,190 2,600 95,498 5,600 205,688
-19-
H.J. Heinz Co. 0.04% 1,600 58,288 1,600 58,288
Kimberly-Clark Corp. 0.12% 2,500 147,725 900 53,181 3,400 200,906
Kroger Co. (The) * 0.06% 1,300 24,063 3,500 64,785 4,800 88,848
Panera Bread Co. Class A* 1.04% 42,300 1,672,119 42,300 1,672,119
Pepsi Bottling Group, Inc. 0.02% 1,000 24,180 1,000 24,180
PepsiCo, Inc. 0.26% 4,000 186,480 5,100 237,762 9,100 424,242
Performance Food Group Co.* 0.88% 39,300 1,421,481 39,300 1,421,481
Philadelphia Suburban Corp. 0.73% 53,077 1,173,002 53,077 1,173,002
Procter & Gamble Co. (The) 0.42% 3,000 299,640 3,800 379,544 6,800 679,184
Safeway Inc.* 0.03% 2,500 54,775 2,500 54,775
Sara Lee Corp. 0.02% 1,300 28,223 1,300 28,223
Sysco Corp. 0.13% 2,500 93,075 3,300 122,859 5,800 215,934
Walgreen Co. 0.12% 2,100 76,398 3,200 116,416 5,300 192,814
---------- ------------ -------------
2,047,690 4,266,602 2,089,296 8,403,588
ENERGY - 5.40%
Anadarko Petroleum Corp. 0.07% 1,200 61,212 900 45,909 2,100 107,121
Baker Hughes Inc. 0.07% 1,100 35,376 2,500 80,400 3,600 115,776
CenterPoint Energy, Inc. 0.02% 1,400 13,566 2,500 24,225 3,900 37,791
ChevronTexaco Corp. 0.41% 4,325 373,637 3,340 288,543 7,665 662,180
ConocoPhillips 0.17% 2,509 164,515 1,728 113,305 4,237 277,820
El Paso Corp. 0.01% 2,500 20,475 2,500 20,475
Exxon Mobil Corp. 0.90% 16,500 676,500 19,000 779,000 35,500 1,455,500
FMC Technologies, Inc.* 1.53% 105,800 2,465,140 105,800 2,465,140
Marathon Oil Corp. 0.03% 1,500 49,635 1,500 49,635
Reliant Resources, Inc. * 0.01% 1,104 8,125 1,971 14,506 3,075 22,631
Schlumberger Ltd. 0.16% 2,600 142,272 2,000 109,440 4,600 251,712
Ultra Petroleum Corp.* 1.23% 80,300 1,976,986 80,300 1,976,986
Unocal Corp. 0.00% 0 0
Western Gas Resources,
Inc. 0.75% 25,400 1,200,150 25,400 1,200,150
Unocal Corp. 0.03% 1,200 44,196 1,200 44,196
---------- ------------ ---------- -------------
1,589,509 5,642,276 1,455,328 8,687,113
FINANCIALS - 12.15%
Affiliated Managers
Group, Inc.* 1.75% 40,400 2,811,436 40,400 2,811,436
AFLAC Inc. 0.10% 2,600 94,068 1,900 68,742 4,500 162,810
Allstate Corp. (The) 0.16% 3,300 141,966 2,500 107,550 5,800 249,516
American Express Co. 0.21% 4,100 197,743 3,000 144,690 7,100 342,433
American International
Group, Inc. 0.62% 5,989 396,951 9,042 599,304 15,031 996,255
Aon Corp. 0.02% 1,200 28,728 1,200 28,728
Bank of America Corp. 0.41% 4,300 345,849 3,900 313,677 8,200 659,526
Bank of New York Co.,
Inc. (The) 0.12% 3,400 112,608 2,500 82,800 5,900 195,408
Bank One Corp. 0.15% 2,800 127,652 2,600 118,534 5,400 246,186
-20-
BB&T Corp. 0.04% 1,600 61,824 1,600 61,824
Charles Schwab Corp. (The) 0.04% 3,500 41,440 2,500 29,600 6,000 71,040
Citigroup Inc. 0.79% 13,000 631,020 13,100 635,874 26,100 1,266,894
Direct General Corp. 0.84% 41,000 1,357,100 41,000 1,357,100
Fannie Mae 0.17% 1,500 112,590 2,200 165,132 3,700 277,722
Fifth Third Bancorp 0.15% 2,000 118,200 2,000 118,200 4,000 236,400
First Niagara Financial
Group, Inc. 0.78% 84,000 1,252,440 84,000 1,252,440
FleetBoston Financial Corp. 0.18% 4,100 178,965 2,400 104,760 6,500 283,725
Franklin Resources, Inc. 0.04% 1,200 62,472 1,200 62,472
Freddie Mac 0.15% 1,600 93,312 2,500 145,800 4,100 239,112
Goldman Sachs Group,
Inc. (The) 0.17% 1,500 148,095 1,300 128,349 2,800 276,444
Hartford Financial
Services Group, Inc. (The) 0.04% 1,000 59,030 1,000 59,030
HSBC Holdings plc, ADR 0.11% 1,337 105,382 963 75,904 2,300 181,286
J. P. Morgan Chase & Co. 0.28% 6,200 227,726 6,000 220,380 12,200 448,106
John Hancock Financial
Services, Inc. 0.06% 2,500 93,750 2,500 93,750
Lehman Brothers Holdings Inc. 0.05% 1,100 84,942 1,100 84,942
Marsh & McLennan Companies,
Inc. 0.20% 2,600 124,514 4,000 191,560 6,600 316,074
MBNA Corp. 0.08% 2,100 52,185 3,000 74,550 5,100 126,735
Mellon Financial Corp. 0.09% 2,500 80,275 1,800 57,798 4,300 138,073
Merrill Lynch & Co., Inc. 0.21% 3,700 217,005 2,000 117,300 5,700 334,305
MetLife, Inc. 0.13% 3,500 117,845 2,700 90,909 6,200 208,754
Morgan Stanley 0.22% 2,500 144,675 3,500 202,545 6,000 347,220
National City Corp. 0.10% 2,500 84,850 2,200 74,668 4,700 159,518
National Financial Partners
Corp. 0.69% 40,500 1,115,775 40,500 1,115,775
Northern Trust Corp. 0.03% 1,000 46,420 1,000 46,420
Platinum Underwriters
Holdings, Ltd. 1.35% 72,600 2,178,000 72,600 2,178,000
PNC Financial Services Group 0.04% 1,100 60,203 1,100 60,203
Prudential Financial, Inc. 0.06% 2,500 104,425 2,500 104,425
Scottish Re Group Ltd. 0.30% 22,900 475,862 22,900 475,862
St. Paul Companies, Inc.
(The) 0.02% 1,000 39,650 1,000 39,650
State Street Corp. 0.03% 1,000 52,080 1,000 52,080
SunTrust Banks, Inc. 0.05% 1,100 78,650 1,100 78,650
The First Marblehead Corp. * 0.17% 12,600 275,688 12,600 275,688
Travelers Property Casualty
Corp., Class A 0.02% 712 11,947 738 12,383 1,450 24,330
Travelers Property Casualty
Corp., Class B 0.03% 1,464 24,844 1,517 25,743 2,981 50,587
U.S. Bancorp 0.19% 6,201 184,666 4,200 125,076 10,401 309,742
UnumProvident Corp. 0.01% 1,100 17,347 1,100 17,347
Wachovia Corp. 0.19% 3,000 139,770 3,600 167,724 6,600 307,494
Washington Mutual, Inc. 0.15% 2,800 112,336 3,150 126,378 5,950 238,714
Wells Fargo & Co. 0.37% 5,400 318,006 4,800 282,672 10,200 600,678
---------- ------------ ---------- -------------
5,118,824 9,466,301 4,965,784 19,550,909
-21-
HEALTHCARE - 12.52%
Abbott Laboratories 0.20% 3,000 139,800 4,000 186,400 7,000 326,200
Allergan, Inc. 0.05% 1,000 76,810 1,000 76,810
Amgen Inc. * 0.30% 4,300 265,740 3,500 216,300 7,800 482,040
Baxter International Inc. 0.10% 2,800 85,456 2,500 76,300 5,300 161,756
Becton, Dickinson & Co. 0.03% 1,200 49,368 1,200 49,368
Boston Scientific Corp. * 0.11% 2,000 73,520 3,000 110,280 5,000 183,800
Bristol-Myers Squibb Co. 0.19% 6,400 183,040 4,500 128,700 10,900 311,740
Cardinal Health, Inc. 0.11% 1,950 119,262 1,000 61,160 2,950 180,422
Cooper Companies, Inc 1.76% 60,000 2,827,800 60,000 2,827,800
Edwards Lifesciences 1.68% 89,900 2,704,192 89,900 2,704,192
Eli Lilly & Co. 0.25% 2,800 196,924 3,000 210,990 5,800 407,914
Guidant Corp. 0.05% 1,400 84,280 1,400 84,280
HCA Inc. 0.09% 1,500 64,440 2,000 85,920 3,500 150,360
HEALTHSOUTH Corp. * 0.01% 1,800 8,244 2,500 11,450 4,300 19,694
IDEXX Laboratories, Inc.* 1.05% 36,400 1,684,592 36,400 1,684,592
Integra Lifesciences Holdings* 1.41% 79,500 2,276,085 79,500 2,276,085
Johnson & Johnson 0.48% 7,500 387,450 7,500 387,450 15,000 774,900
McKesson Corp. 0.05% 1,300 41,808 1,000 32,160 2,300 73,968
Medco Health Solutions, Inc. * 0.04% 964 32,766 723 24,575 1,687 57,341
Medtronic, Inc. 0.25% 4,000 194,440 4,300 209,023 8,300 403,463
Merck & Co. Inc. 0.33% 5,500 254,100 6,000 277,200 11,500 531,300
Neurocrine Biosciences, Inc. * 1.07% 31,700 1,728,918 31,700 1,728,918
NPS Pharmaceuticals, Inc.* 1.53% 80,000 2,459,200 80,000 2,459,200
Pfizer Inc. 0.89% 19,860 701,654 20,500 724,265 40,360 1,425,919
Schering-Plough Corp. 0.07% 4,200 73,038 2,500 43,475 6,700 116,513
Tenet Heathcare Corp. * 0.02% 2,250 36,113 2,250 36,113
UnitedHealth Group Inc. 0.18% 2,000 116,360 3,000 174,540 5,000 290,900
Wyeth 0.20% 4,200 178,290 3,300 140,085 7,500 318,375
------------ ---------- -------------
3,362,903 13,680,787 3,100,273 20,143,963
INDUSTRIALS - 12.57%
3M Co. 0.23% 2,400 204,072 2,000 170,060 4,400 374,132
Automatic Data Processing, Inc. 0.12% 2,900 114,869 2,000 79,220 4,900 194,089
Boeing Co. (The) 0.15% 2,600 109,564 3,000 126,420 5,600 235,984
Caterpillar Inc. 0.15% 1,600 132,832 1,300 107,926 2,900 240,758
Cendant Corp. * 0.08% 3,300 73,491 2,700 60,129 6,000 133,620
Central Freight Lines, Inc.* 0.04% 3,300 58,575 3,300 58,575
Compass Minerals
International, Inc.* 0.47% 52,700 752,556 52,700 752,556
Concord EFS, Inc. * 0.05% 2,500 37,100 2,500 37,100 5,000 74,200
CSX Corp. 0.02% 1,000 35,940 1,000 35,940
DSP Group, Inc.* 2.10% 135,600 3,377,796 135,600 3,377,796
EDO Corp. 0.87% 56,500 1,392,725 56,500 1,392,725
Emerson Electric Co. 0.14% 2,000 129,500 1,500 97,125 3,500 226,625
-22-
FedEx Corp. 0.08% 1,000 67,500 1,000 67,500 2,000 135,000
General Dynamics Corp. 0.03% 600 54,234 600 54,234
General Electric Co. 1.06% 26,200 811,676 29,000 898,420 55,200 1,710,096
Heartland Express, Inc. 0.94% 62,337 1,507,932 62,337 1,507,932
Honeywell International Inc. 0.10% 2,000 66,860 2,800 93,604 4,800 160,464
Illinois Tool Works Inc. 0.13% 1,400 117,474 1,000 83,910 2,400 201,384
IMS Health Inc. 0.02% 1,400 34,804 1,400 34,804
Lockheed Martin Corp. 0.13% 2,500 128,500 1,500 77,100 4,000 205,600
Masco Corp. 0.07% 2,500 68,525 1,700 46,597 4,200 115,122
Overnight Corp.* 0.08% 5,600 127,400 5,600 127,400
Paychex, Inc. 0.10% 1,700 63,240 2,500 93,000 4,200 156,240
Quanta Services, Inc.* 0.32% 70,000 511,000 70,000 511,000
Raytheon Co. 0.03% 1,600 48,064 1,600 48,064
Shuffle Master, Inc.* 1.58% 73,400 2,541,108 73,400 2,541,108
Southwest Airlines Co. 0.06% 3,750 60,525 2,700 43,578 6,450 104,103
Swift Transportation Co., Inc.* 0.88% 67,100 1,410,442 67,100 1,410,442
Transocean Inc. * 0.04% 2,500 60,025 2,500 60,025
Tyco International Ltd. 0.22% 6,397 169,521 7,000 185,500 13,397 355,021
Union Pacific Corp. 0.09% 1,000 69,480 1,000 69,480 2,000 138,960
United Parcel Service, Inc.,
Class B 0.28% 2,500 186,375 3,500 260,925 6,000 447,300
United Technologies Corp. 0.16% 100 94,770 1,700 161,109 1,800 255,879
Universal Technical Institute
Inc.* 0.15% 8,200 246,000 8,200 246,000
USF Corp. 1.54% 72,600 2,482,194 72,600 2,482,194
Waste Management, Inc. 0.08% 2,500 74,000 1,700 50,320 4,200 124,320
---------- ------------ ---------- -------------
2,952,916 14,407,728 2,869,048 20,229,692
INFORMATION TECHNOLOGY - 21.81%
Adobe Systems Inc. 0.03% 1,100 43,230 1,100 43,230
Agere Systems Inc.,
Class A * 0.00% 125 381 115 351 240 732
Agere Systems Inc.,
Class B * 0.01% 3,068 8,897 2,830 8,207 5,898 17,104
Agilent Technologies, Inc. 0.06% 1,500 43,860 1,800 52,632 3,300 96,492
Altera Corp. * 0.05% 1,900 43,130 1,500 34,050 3,400 77,180
Analog Devices, Inc. 0.08% 1,700 77,605 1,000 45,650 2,700 123,255
Apple Computer, Inc. * 0.02% 1,500 32,055 1,500 32,055
Applied Films Corp 1.27% 62,000 2,047,240 62,000 2,047,240
Applied Materials, Inc. * 0.11% 4,900 110,005 2,900 65,105 7,800 175,110
Avocent Corporation 1.60% 70,500 2,574,660 70,500 2,574,660
Caci International Inc.
Class A 1.63% 54,100 2,630,342 54,100 2,630,342
Callidus Software* 0.04% 3,300 58,377 3,300 58,377
Cisco Systems, Inc. * 0.55% 19,500 473,655 16,900 410,501 36,400 884,156
Computer Associates
International, Inc. 0.05% 2,700 73,818 2,700 73,818
Corning Inc. * 0.02% 3,000 31,290 3,000 31,290
Dell Inc. * 0.24% 4,700 159,612 6,500 220,740 11,200 380,352
-23-
Electronic Arts Inc. * 0.06% 2,000 95,560 2,000 95,560
Electronic Data Systems
Corp. 0.05% 2,500 61,350 1,000 24,540 3,500 85,890
EMC Corp. * 2.95% 4,500 58,140 355,830 4,597,324 7,000 90,440 367,330 4,745,904
Enterasys Networks, Inc.* 1.31% 562,100 2,107,875 562,100 2,107,875
Equinix, Inc.* 0.29% 16,500 465,300 16,500 465,300
Fairchild Semiconductor
International, Inc.* 3.13% 201,600 5,033,952 201,600 5,033,952
First Data Corp. 0.13% 5,000 205,450 5,000 205,450
Harris Interactive Inc.* 0.79% 152,200 1,263,260 152,200 1,263,260
Hewlett-Packard Co. 0.23% 8,100 186,057 7,800 179,166 15,900 365,223
Intel Corp. 0.74% 17,600 566,720 19,500 627,900 37,100 1,194,620
International Business
Machines Corp. 0.63% 5,500 509,740 5,400 500,472 10,900 1,010,212
ITT Educational Services,
Inc.* 1.20% 41,200 1,935,164 41,200 1,935,164
Linear Technology Corp. 0.07% 1,500 63,105 1,000 42,070 2,500 105,175
LSI Logic Corp. * 0.01% 1,500 13,305 1,500 13,305
Maxim Integrated Products,
Inc. 0.07% 1,300 64,740 1,000 49,800 2,300 114,540
Micron Technology, Inc. * 0.04% 2,600 35,022 2,500 33,675 5,100 68,697
Microsoft Corp. 1.00% 28,100 773,874 30,200 831,708 58,300 1,605,582
Motorola, Inc. 0.12% 7,100 99,897 6,600 92,862 13,700 192,759
NVIDA Corp. * 0.01% 1,000 23,250 1,000 23,250
Oracle Corp. * 0.25% 17,800 234,960 12,300 162,360 30,100 397,320
QUALCOMM Inc. 0.13% 1,500 80,895 2,500 134,825 4,000 215,720
Sanmina-SCI Corp. * 0.02% 2,500 31,525 2,500 31,525
Siebel Systems, Inc. * 0.02% 2,500 34,675 2,500 34,675
Skyworks Solutions, Inc.* 0.97% 179,100 1,558,170 179,100 1,558,170
Solectron Corp. * 0.02% 3,700 21,867 3,000 17,730 6,700 39,597
Sun Microsystems, Inc. * 0.05% 10,000 44,900 7,500 33,675 17,500 78,575
SunGard Data Systems, Inc. * 0.04% 2,500 69,275 2,500 69,275
Texas Instruments Inc. 0.19% 5,400 158,652 4,900 143,962 10,300 302,614
Yahoo! Inc. * 0.12% 2,500 112,925 1,900 85,823 4,400 198,748
Zoran Corp.* 1.42% 131,750 2,291,133 131,750 2,291,133
---------- ------------ ---------- -------------
4,340,482 26,562,796 4,191,184 35,094,462
MATERIALS - 7.86%
Air Products & Chemicals,
Inc. 0.03% 1,000 52,830 1,000 52,830
Alcoa Inc. 0.17% 4,200 159,600 3,100 117,800 7,300 277,400
Dow Chemical Co. (The) 0.14% 2,700 112,239 2,700 112,239 5,400 224,478
E. I. du Pont de Nemours & Co. 0.16% 3,300 151,437 2,200 100,958 5,500 252,395
General Cable Corp.* 0.63% 124,200 1,012,230 124,200 1,012,230
Georgia-Pacific Corp. 0.04% 1,000 30,670 1,000 30,670 2,000 61,340
International Paper Co. 0.12% 2,500 107,775 2,000 86,220 4,500 193,995
Joy Global Inc. 1.85% 114,100 2,983,715 114,100 2,983,715
Packaging Corp of America 1.76% 129,600 2,833,056 129,600 2,833,056
Peabody Energy Corp. 1.74% 67,000 2,794,570 67,000 2,794,570
-24-
Praxair, Inc. 0.07% 3,000 114,600 3,000 114,600
Rohm & Haas Co. 0.03% 1,000 42,710 1,000 42,710
Steel Dynamics, Inc.* 1.08% 74,300 1,745,307 74,300 1,745,307
Weyerhaeuser Co. 0.04% 1,000 64,000 1,000 64,000
---------- ------------ ---------- -------------
604,431 11,368,878 679,317 12,652,626
TELECOMMUNICATION SERVICES - 1.30%
ALLTEL Corp 0.04% 1,500 69,870 1,500 69,870
AT&T Corp. 0.06% 2,260 45,878 2,400 48,720 4,660 94,598
AT&T Wireless Services Inc. * 0.06% 8,534 68,187 4,522 36,131 13,056 104,318
BellSouth Corp. 0.22% 6,000 169,800 6,500 183,950 12,500 353,750
Journal Communications, Inc. 0.14% 12,000 222,360 12,000 222,360
Lucent Technologies Inc. * 0.04% 11,600 32,944 10,700 30,388 22,300 63,332
Nextel Communications, Inc.,
Class A * 0.04% 2,500 70,150 2,500 70,150
SBC Communications Inc. 0.18% 8,200 213,774 2,500 70,150 10,700 283,924
Sprint Corp. (FON Group) 0.17% 4,000 65,680 7,900 205,953 11,900 271,633
Sprint Corp. (PCS Group) * 0.04% 1,800 10,116 3,000 49,260 4,800 59,376
Verizon Communications Inc. 0.31% 6,200 217,496 7,900 277,132 14,100 494,628
------------ ---------- -------------
963,895 222,360 901,684 2,087,939
UTILITIES - 0.66%
American Electric Power Co.,
Inc. 0.05% 1,500 45,765 1,200 36,612 2,700 82,377
Dominion Resources, Inc. 0.08% 1,100 70,213 1,000 63,830 2,100 134,043
Duke Energy Corp. 0.07% 2,500 51,125 2,800 57,260 5,300 108,385
Edison International * 0.05% 1,500 32,895 2,500 54,825 4,000 87,720
Exelon Corp. 0.06% 1,500 99,540 1,500 99,540
FirstEnergy Corp. 0.05% 2,500 88,000 2,500 88,000
FPL Group, Inc. 0.04% 1,000 65,420 1,000 65,420
Progress Energy, Inc. 0.03% 1,000 45,260 1,000 45,260
Public Service Enterprises
Group Inc, 0.03% 1,000 43,800 1,000 43,800
Scottish Power plc, ADR 0.07% 4,000 108,720 4,000 108,720
Southern Co. (The) 0.05% 2,400 72,600 2,400 72,600
TXU Corp. 0.03% 1,200 28,464 1,000 23,720 2,200 52,184
Xcel Energy, Inc. 0.04% 1,600 27,168 2,500 42,450 4,100 69,618
---------- ------------ ---------- ------------
509,650 0 548,017 1,057,667
TOTAL EQUITY SECURITIES 95.21% 25,929,314 100,826,318 26,435,672 153,191,304
---------- ------------ ---------- ------------
SHORT-TERM INVESTMENTS - 21.34%
REPURCHASE AGREEMENTS - 21.34%
Bear, Stearns & Co. Inc. 0.09% 138,234 138,234 138,234 138,234
(Agreement dated 12/31/03 to
be repurchased at $138,241),
0.85%, 01/02/04
-25-
Bear, Stearns & Co. Inc. 0.27% 438,900 438,900 438,900 438,900
(Agreement dated 12/31/03 to
be repurchased at $438,926),
1.06%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 0.00% 2,278 2,278 2,278 2,278
(Agreement dated 12/31/03 to
be repurchased at $2,278),
0.94%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 4.89% 7,867,525 7,867,525 7,867,525 7,867,525
(Agreement dated 12/31/03 to
be repurchased at $7,867,897)
0.85%, 01/02/04
Bear, Stearns & Co. Inc. 14.84% 23,869,214 23,869,214 23,869,214 23,869,214
(Agreement dated 12/31/03 to
be repurchased at $23,870,620)
1.06%**, 01/02/04***
Bear, Stearns & Co. Inc. 0.86% 1,380,273 1,380,273 1,380,273 1,380,273
(Agreement dated 12/31/03 to
be repurchased at $1,380,345)
0.94%**, 01/02/04***
Bear, Stearns & Co. Inc. 0.09% 139,977 139,977 139,977 139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%, 01/02/04
Bear, Stearns & Co. Inc. 0.26% 425,588 425,588 425,588 425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**, 01/02/04 ***
Bear, Stearns & Co. Inc. 0.04% 65,644 65,644 65,644 65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**, 01/02/04 ***
---------- ------------ ----------- -----------
TOTAL SHORT-TERM INVESTMENTS 21.34% 579,412 33,117,012 631,209 34,327,633
---------- ------------ ----------- -----------
TOTAL INVESTMENTS AT MARKET 116.55% 26,508,726 133,943,330 27,066,881 187,518,937
---------- ------------ ----------- -----------
TOTAL INVESTMENTS AT COST 29,716,897 108,743,027 24,952,427 163,412,351
---------- ------------ ----------- -----------
@ No adjustments are shown to the unaudited pro forma combined portfolio of
investments due to the fact that upon consummation of the merger,
securities would need to be sold in order for Acquiring Fund to comply
with its prospectus restrictions. The foregoing sentence shall not
restrict in any way the ability of the investment adviser of any of the
funds from buying or selling securities in the normal course of such
fund's business and operations.
* Non-income producing securities
** Stated interest rate, before rebate earned by borrower of securities on loan
*** Represents investment purchased with cash collateral received for securities
on loan.
ADR American Depositary Receipt
-26-