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 reported amounts and
disclosures in the financial statemen