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Incomeand Growth

I~ ~ ~ ~~ttTheFully Administered Fund

... a conservative investment

Group Securities, Inc.(MST. 1OSS)

-':¢ ,, e r>;,

PurposeThe purpose of The Fully Adminis-

tered Fund is to provide complete in-vestment management for investorswho are seeking regular income at areasonable rate, together with conser-vative long-term growth of principal.

Consistent with these objectives, theinvestment policy of the managementis conservative at all times. The man-agement does not seek speculativeprofits: it endeavors to balance theinvestments of the fund in accordancewith the outlook, increasing the hold-ings of common stocks and other ag-gressive investments during favorableperiods of relatively high earningsand dividends and, conversely, em-phasizing bonds and other defensiveinvestments for the protection ofprincipal in less favorable periods ofbusiness activity.

This is the essence of a trulybalanced fund: never to be in anextreme or extended position, butconservatively to reduce or increasethe proportion of common stocks heldfor the fund toward the end of main-taining reasonable income, long-termgrowth of principal, and some degreeof compensation for the changingvalue of the dollar. In striving forthis goal, the management may choose

from the investment issues of all in-dustries and may use bonds, preferredstocks, or common stocks when thesedifferent securities appear most suit-able.

CharacteristicsShares of the Fund thus provide

investors with a convenient and com-plete investment program - a con-servative balance being maintained atall times between aggressive and de-fensive investments, reflecting themanagement's judgment of changingconditions. Broad diversification isalso maintained as to industries andindividual companies.

In keeping with these conservativeinvestment objectives, the shares tendto advance or decline in market valueat a relatively lesser rate than domany individual securities, and thusare suitable for investment rather thanspeculation.

SponsorGroup Securities, Inc. is a mutual

fund in its seventeenth year of oper-ation, now serving some 37,000 share-holders. The Company's sponsor andinvestment adviser is DistributorsGroup, Incorporated - a relationshipwhich has existed since the Fund wasfounded in 1933.

The Fully Administered Fund iThe Balanced Fund of Group Securities, Inc.

. . . a complete, conservative program in a single investment

Through ownership of shares of TheFully Administered Fund, your moneyis invested in a broadly diversifiedlist of stocks and bonds . . . selected,

supervised and administered by pro-fessional management. Investmentsheld by the Fund are shown on thebasis of market values October 2, 1950.

Common Stocks (53.23%)Name of Issue

AgriculturalAllis-Chalmers Mfg. Co.

AutomobileBorg-Warner Corp.Briggs Mfg. Co.Firestone Tire & Rubber Co.

AviationAmerican Airlines, Inc.Douglas Aircraft Co., Inc.

BuildingAmerican Radiator & Std.

San. Corp.Johns-Manville Corp.

Percentage

1.39

1.330.632.81

1.071.32

0.930.92

ChemicalAmerican Cyanamid Co. 0.65Du Pont de Nemours

(E. I.) & Co. 0.78Union Carbide & Carbon Corp. 1.37

Name of Issue Percentage

MiningKennecott Copper Corp. 1.22

PetroleumShell Oil Corp. 2.43Socony Vacuum Oil Co. 1.35Standard Oil Co. (Indiana) 0.54Texas Co. 1.45

Railroad EquipmentAmerican Brake Shoe Co. 0.95General American Transpor-

tation Corp. 0.79General Railway Signal Co. 0.61New York Air Brake Co. 0.66

Railroad StocksAtchison, Topeka &

Santa Fe Rwy. Co. 1.55Atlantic Coast Line R.R. Co. 0.88Chicago, Rock Island &

Pacific Ry. Co. 0.86Great Northern $6

Non. Cum. Pfd. 0.31Southern Pacific Co. 1.76Southern Railway Co. 0.50

SteelBethlehem Steel Corp. 1.62National Steel Corp. 2.29

UtilitiesAmerican Tel. & Tel. Co. 1.45Panhandle Eastern Pipe

Line Co. 1.17

MiscellaneousCelanese Corp. of America 0.74Collins & Aikman Corp. 0.49Columbia Broadcasting

System "A" 1.02Newport Industries, Inc. 0.45Sun Chemical Corp. 0.67

DrugsParke, Davis & Co.

Electrical EquipmentGeneral Electric Co.

FoodContinental Can Co., Inc.Corn Products Refining Co.General Foods Corp.Standard Brands, Inc.Wrigley (Wm.) Jr. Co.

Industrial MachineryFairbanks Morse & Co.

MerchandisingMay Department StoresMontgomery Ward & Co.Woolworth (F. W.) Co.

1.61

0.92

0.711.820.930.890.75

1.85

2.191.211.39

Cash, Government Bonds and Other Fixed Income Securities (46.77%)Name of Issue Percentage

Highest Investment Quality 39.93%GOVERNMENT BONDS ANDCASH 29.61%

U. S. Treas. 23%, June 15, 1962/59 4.51U. S. Treas. 2U%, June 15, 1967/62 3.00U. S. Treas. 2U,% Dec. 15, 1968/63 3.97U. S. Treas. 2%%, June 15, 1969/64 7.89U. S. Treas. 2%%, Dec. 15, 1969/64 9.06Cash 1.18CORPORATE BONDS 10.32%Boston Edison Co. 1st "A" 2%s, 1970 1.28Cincinnati Gas & El. 1st Mtge.

2%s, 1975 2.17Illinois Bell Tel. Co. 1st Mtge. "A"

2%s, 1981 2.46Kansas City Power & Light Co. 1st

Mtge. 2%s, 1976 2.47Philadelphia Elec. Co. 1st & Ref. Mtge.

2%s, 1971 1.94

Name of Issue Percentage

Other Bonds and Preferred Stocks 6.84%American Cyanamid Co. 3%% Cum.

"B" Pfd. 1.07Baltimore & Ohio R.R. Co. Ref. & Gen.

Mtge. "G" 2-5/1995 1.43Kansas City Southern Rwy. Co. 4% Pfd. 0.77New York Central R.R. Co. Ref. & imp.

Mtge. "'A" 45/2013 1.36N. Y. Chic. & St. Louis R.R. 6% Cum.

Pfd. "A" 0.55West Shore Railroad 1st Mtge.

4/2361 (Cpn.)West Shore Railroad 1st Mtge.

4/2361 (Reg.)

1.14

0.52

This folder was prepared by Distributors Group, Incorporated, the sponsor of Group Securities. Inc. It is not aProspectus and no person is authorized to give or send it to anyone who has not previously or concurrently receivedthe current Prospectus of Group Securities, Inc. Additional copies of such Prospectus may be obtained from investmentdealers or from Distributors Group, Incorporated, 63 Wall St., New York 5, N. Y.October 1950 PA-S

HistoryIn the years since the Fund was

launched, the proportions of its totalassets have varied within differenttypes of investments, as follows: from35% to 65% in common stocks; from1 % to 30% in preferred stocks; andfrom 42% to 42% in bonds and cash.

RecordShareholders receive each year's

net investment income quarterly, asregular dividends, at the end of Febru-ary, May, August, and November. Anynet profits realized by the Fund fromthe sale of investments may be paidout as "extra distributions," ordinarilyin the last quarter of the year.

An investment of $10,000 at theoffered price on January 2, 1940,would have been worth $10,654 atasset value on December 31, 1949,just ten years later. During this 10year period, which overall was oneof generally rising prices, both mar-ket price and dividends changed fromyear to year as shown by the tablebelow. Dividends paid from net in-vestment income on the original $10,-000 investment aggregated $4,062and extra distributions from netrealized security profits $2,113. Hadboth been reinvested at asset valueon the dates they were paid the totalasset value at December 31, 1949would have totalled $19,640.

f

DIVIDEND AND PRICE RECORD

Year

194019411942194319441945

RegularDividends(from netInvestmentincome)

$20.305.44.33.20.18

ExtraDistributions(from netsecurityprofits)

$.085

.15

.29

.42

SALES PRICELow High

$5.31 $ 6.764.99 6.165.04 6.055.68 7.987.25 8.208.04 9.97

RegularDividends(from netInvestment

Year income)

1946 $.2051947 .2151948 .311949 .3459 Mo. 1950 .24

ExtraDistributions(from netsecurityprofits)

$.175.165.11.025

SALES PRICELow High

$7.97 $10.377.14 8.967.38 8.746.89 7.857.60* 8.40*'To October 2

TOTAL

30%c2Nic

NOVEMBER

Reg. 632cExtra 23ic

DIVIDENDS BY QUARTERS FOR PASTFEBRUARY 1950 MAY 1950

Reg. 8c Reg. 8c

12 MONTHS:AUGUST 1950

Reg. 8c..................

Some Advantages of Using I

The Fully Administered FundThe Balanced Fund of Group Securities, Inc.

as a conservative and complete investment program4 Wide Diversification ...

an ownership interest in a broad list of better-grade stocks and bonds,diversified as to business dnd industry

4 Continuing Supervision...by professional management currently administering for some 37,000 share-holders more than $75,000,000 of investment funds

4 Custody of Assets ...the Fund's cash and securities are held by The First National Bank ofthe City of New York, as Custodian

4 Convenience...your participation in the ownership of many stocks and bonds requires buta single certificate; your share of the income from these many sources ispaid to you quarterly in a single dividend, check; complete tax informationon these payments is sent to you annually; your ownership of the sharescan be added to at any time

4 Marketability ...shares may be resold to the Fund for cash. The repurchase or redemptionprice may be more - or it may be less - than the investor's cost, inasmuchas the redemption price depends on the market value of the securities heldfor the Fund at the time of redemption

This folder presents certain of the investment features and uses of TheFully Administered Fund. A more complete description of the Fund, and of theCompany of which it is a part, is given in the Prospectus.

There is a sales charge to the investor included in the offering price ofthe shares of this Company. For details thereof and other material informa-tion, see the Prospectus.SELECTIVEA This folder was prepared by Distributors Group, Incorporated, the sponsor of Group Securities, Inc.

It is not a Prospectus and no person is authorized to give or send it to anyone who has not previouslyor concurrently received the current Prospectus of Group Securities, Inc. Additional copies of sucProspectus may be obtained from investment dealers or from Distributors Group, Incorporated,63 Wail St.. New York S. N. Y.

INSCSTING October 1950 FAp-3