December 31, 1999
Prin. Amt.
or Shares Value (A)
-------------------------------------------------------------------------------------------
Stocks and Convertible Securities-- 98.3%
BASIC MATERIALS-- 2.4%
Avery Dennison Corp. .............................. 227,200 $ 16,557,200
Consolidated Papers, Inc. ......................... 410,000 13,043,125
Engelhard Corp. ................................... 320,000 6,040,000
Mead Corp. ........................................ 400,000 17,375,000
------------
53,015,325
------------
CAPITAL GOODS-- 9.3%
Black & Decker Corp. .............................. 300,000 15,675,000
Corning Inc. ...................................... 460,000 59,311,250
Dover Corp. ....................................... 260,000 11,797,500
General Electric Co. .............................. 655,000 101,361,251
Pall Corp. ........................................ 600,000 12,937,500
------------
201,082,501
------------
COMMUNICATION SERVICES-- 13.9%
Telecommunications-- Cellular and Wireless-- 3.9%
MediaOne Group, Inc. 6.25% PIES due 2001 .......... 85,000 9,180,000
Nextel Communications Inc. (B)..................... 600,000 61,875,000
Vodafone AirTouch plc ADS.......................... 287,500 14,231,250
------------
85,286,250
------------
Telecommunications-- Long Distance-- 3.8%
MCI WorldCom, Inc. (B)............................. 615,000 32,633,438
Qwest Communications International, Inc.
5.75% TRENDS Pfd. due 2003 (C).................. 125,000 8,843,750
Qwest Communications International, Inc. (B)....... 792,012 34,056,516
Williams Communications Group, Inc. (B)............ 220,000 6,366,250
------------
81,899,954
------------
Telephone-- 6.2%
BellSouth Corp. ................................... 440,000 20,597,500
Global Crossing Ltd. (B)........................... 922,500 46,125,000
RCN Corp. (B)...................................... 172,500 8,366,250
SBC Communications, Inc. .......................... 787,960 38,413,050
Time Warner Telecom Inc. (B)....................... 404,500 20,199,719
------------
133,701,519
------------
CONSUMER-- 8.1%
Consumer Cyclical-- 1.3%
Delphi Automotive, Inc. ............................ 690,000 10,867,500
Tiffany & Co. ...................................... 200,000 17,850,000
------------
28,717,500
------------
Consumer Staples-- 6.8%
Coca-Cola Co. ...................................... 170,000 9,902,500
Dean Foods Co. ..................................... 300,000 11,925,000
Fort James Corp. ................................... 500,000 13,687,500
Gillette Co. ....................................... 439,120 18,086,255
Houston Industries Inc. 7.00% Conv.
DECS due 2000.................................... 150,000 18,075,000
Interstate Bakeries Corp. .......................... 138,000 2,501,250
Ivex Packaging Corp. (B)............................ 900,000 9,000,000
McDonald's Corp. ................................... 560,000 22,575,000
MediaOne Group, Inc. (B)............................ 150,000 11,521,875
Owens-Illinois, Inc. (B)............................ 535,000 13,408,438
PepsiCo, Inc. ...................................... 295,000 10,398,750
Ralston Purina 7.00% SAILS due 2000................. 180,000 6,581,250
------------
147,662,818
------------
ENERGY-- 5.4%
BP Amoco plc ADR.................................... 300,000 17,793,751
Enron Corp. ........................................ 500,000 22,187,500
Exxon Mobil Corp. .................................. 158,418 12,762,550
Petroleum & Resources Corporation (D)............... 1,210,085 39,025,241
Royal Dutch Petroleum Co. .......................... 80,000 4,845,000
Schlumberger Ltd. .................................. 88,400 4,972,500
Transocean Sedco Forex, Inc. ....................... 17,114 576,528
Williams Companies, Inc. ........................... 500,000 15,281,250
------------
117,444,320
------------
FINANCIAL-- 11.9%
Banking-- 6.9%
Associates First Capital Corp. Ser. A.............. 546,800 15,002,825
Banc One Corp. ..................................... 330,000 10,560,000
Federal Home Loan Mortgage Corp. ................... 360,000 16,942,500
Greenpoint Financial Corp. ......................... 435,000 10,358,437
Investors Financial Services Corp. ................. 450,000 20,700,000
Mellon Bank Corp. .................................. 420,000 14,306,250
National City Corp. ................................ 160,000 3,790,000
Peoples Heritage Financial Group ................... 474,000 7,139,625
Provident Bankshares Corp. ......................... 303,875 5,260,844
Wachovia Corp. ..................................... 190,000 12,920,000
Wells Fargo & Co. .................................. 550,000 22,240,625
Wilmington Trust Corp. ............................. 210,000 10,132,500
------------
149,353,606
------------
Insurance-- 5.0%
AMBAC Financial Group, Inc. ........................ 379,600 19,810,375
American International Group, Inc. ................. 506,250 54,738,282
Annuity & Life Re (Holdings), Ltd. ................. 700,000 18,287,500
Financial Security Assurance Holdings Ltd. ......... 307,387 16,022,547
------------
108,858,704
------------
HEALTH CARE-- 8.4%
Abbott Laboratories................................. 255,000 9,259,688
ALZA Corp. (B)...................................... 340,000 11,772,500
American Home Products Corp. ....................... 425,000 16,681,250
Baxter International ............................... 255,000 16,017,187
Chiron Corp. (B).................................... 550,000 23,306,250
Elan Corp., plc ADR (B)............................. 870,000 25,665,000
Lilly (Eli) & Co. .................................. 290,000 19,285,000
Johnson & Johnson................................... 110,000 10,257,500
Merck & Co., Inc. .................................. 300,000 20,156,250
Pharmacia & Upjohn Inc. ............................ 310,000 13,950,000
SmithKline Beecham plc ADR.......................... 260,000 16,672,500
------------
183,023,125
------------
TECHNOLOGY-- 34.9%
Communication Equipment-- 13.0%
Ericsson (L.M.) Telephone Co.
4.25% Conv. Sub. Debs. due 2000.................. $120,000 2,250,000
Ericsson (L.M.) Telephone Co. ADR................... 750,000 49,265,625
Lucent Technologies Inc. ........................... 508,920 38,073,578
Motorola, Inc. ..................................... 161,874 23,835,946
Nokia Corp. ADR..................................... 485,000 92,150,000
Nortel Networks Corp. .............................. 760,000 76,760,000
--------------
282,335,149
--------------
Computer Related-- 16.2%
BMC Software Inc. (B)............................... 275,000 21,982,812
Cisco Systems, Inc. (B)............................. 917,500 98,287,187
DST Systems Inc. (B)................................ 70,000 5,341,875
First Data Corp. ................................... 343,980 16,962,514
Hewlett-Packard Co. ................................ 200,000 22,750,000
Oracle Corp. (B).................................... 295,000 33,058,437
QRS Corp. (B)....................................... 502,500 52,762,501
Sapient Corp. (B)................................... 570,000 80,334,375
Sterling Commerce, Inc. (B)......................... 575,000 19,550,000
--------------
351,029,701
--------------
Electronics-- 5.7%
Intel Corp. ........................................ 340,000 27,986,250
Solectron Corp. (B)................................. 1,000,000 95,125,000
--------------
123,111,250
--------------
TRANSPORTATION-- 0.6%
Canadian National Railway Co.
5.25% Conv. Pfd. QUIDS due 2029.................. 15,000 630,000
Canadian National Railway Co. ...................... 60,000 1,590,000
Ryder System, Inc. ................................. 445,000 10,874,687
--------------
13,094,687
--------------
UTILITIES-- 3.4%
Black Hills Corp. .................................. 555,000 12,314,063
Calpine Capital Trust
5.75% Conv. Pfd. High Tides...................... 125,000 8,140,625
Calpine Corp. (B)................................... 35,000 2,240,000
CINergy Corp. ...................................... 300,000 7,181,250
ENDESA, S.A. ADR.................................... 350,000 7,065,625
Northwestern Corp. ................................. 500,000 11,000,000
TECO Energy, Inc. .................................. 300,000 5,568,750
United Water Resources Inc. ........................ 600,000 20,512,500
--------------
74,022,813
--------------
TOTAL STOCKS AND CONVERTIBLE SECURITIES
(Cost $831,889,118)(E).............................. 2,133,639,222
--------------
SHORT-TERM INVESTMENTS-- 1.8%
U.S. Government Obligations-- 0.5%
U.S. Treasury Bills,
4.90-5.10%, due 2/24/00.......................... $12,000,000 11,908,740
--------------
Certificates of Deposit-- 0.5%
SouthTrust Bank of Alabama,
6.00%, due 1/27/00............................... $10,000,000 10,000,000
--------------
Commercial Paper-- 0.8%
Chevron USA, 6.35%, due 1/13/00..................... $2,050,000 2,045,661
Ford Motor Credit Corp.,
5.25-6.01%, due 1/4/00-2/17/00................... $7,505,000 7,477,395
General Electric Capital Corp.,
6.55-6.60%, due 1/11/00-1/12/00.................. $8,355,000 8,339,449
--------------
17,862,505
--------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $39,771,245).................................. 39,771,245
--------------
TOTAL INVESTMENTS
(Cost $871,660,363)................................. 2,173,410,467
Cash, receivables and other assets,
less liabilities.............................. (2,608,592)
---------------
NET ASSETS-- 100.0%.................................... $2,170,801,875
============================================================================================
Notes:
(A) See note 1 to financial statements. Securities are listed on the New York
Stock Exchange, the American Stock Exchange, or the NASDAQ, except
restricted securities.
(B) Presently non-dividend paying.
(C) Restricted security Qwest Communications International, Inc. 5.75% TRENDS
Pfd. due 2003, acquired 12/4/98, cost $5,218,750).
(D) Non-controlled affiliate and is a registered investment company.
(E) The aggregate market value of stocks held in escrow at December 31, 1999
covering open call option contracts written was $16,514,294. In addition,
the required aggregate market value of securities segregated by the
custodian to collateralize open put option contracts written was $5,225,313.
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