<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
----------------- ----------------
<S> <C> <C>
ASSETS:
Investments at value (Notes 1 and 4) ........................ $1,065,899,953 $225,870,317
Cash ........................................................ 156,695 60,518
Receivable for securities sold .............................. -- 14,125,951
Collateral held for securities loaned (Note 1) .............. -- 18,552,820
Receivable from Separate Accounts for Trust shares sold ..... 37,773,076 423,626
Unrealized appreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- --
Variation margin receivable on futures contracts ............ -- 3,720
Dividends, interest and other receivables ................... 6,829,093 1,986,194
-------------- ------------
Total assets .............................................. 1,110,658,817 261,023,146
-------------- ------------
LIABILITIES:
Options written at value (Premiums received: Alliance
Common Stock Portfolio--$195,807,516) (Notes 1 and 4) ...... -- --
Payable for securities purchased ............................ -- 57,907,115
Payable for collateral received on securities loaned ........ -- 18,552,820
Payable to Separate Accounts for Trust shares redeemed ...... 172,164 176,688
Unrealized depreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- --
Distribution fees payable ................................... 75,249 6,178
Investment advisory fees payable ............................ 303,228 76,809
Trustees' fees payable ...................................... 36,067 7,500
Accrued expenses ............................................ 42,501 14,870
-------------- ------------
Total liabilities ......................................... 629,209 76,741,980
-------------- ------------
NET ASSETS .................................................. $1,110,029,608 $184,281,166
============== ============
Investments at cost ......................................... $1,065,207,929 $224,425,951
============== ============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................ $1,109,363,876 $188,629,615
Accumulated undistributed (overdistributed) net
investment income ......................................... (30,306) 41,806
Accumulated undistributed net realized gain (loss) ......... 4,014 (5,835,966)
Unrealized appreciation/depreciation on investments and
foreign currency denominated assets and liabilities ....... 692,024 1,445,711
-------------- ------------
NET ASSETS .................................................. $1,110,029,608 $184,281,166
============== ============
CLASS IA SHARES:
Net Assets .................................................. $ 723,311,188 $153,383,440
============== ============
Shares outstanding (Note 5) ................................. 70,743,797 15,858,517
============== ============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 10.22 $ 9.67
============== ============
CLASS IB SHARES:
Net Assets .................................................. $ 386,718,420 $ 30,897,726
============== ============
Shares outstanding (Note 5) ................................. 37,888,260 3,198,848
============== ============
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 10.21 $ 9.66
============== ============
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND
QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- --------------- ------------------
<S> <C> <C> <C>
ASSETS:
Investments at value (Notes 1 and 4) ........................ $325,048,927 $ 598,993,487 $ 995,416,319
Cash ........................................................ 160,618 2,432,944 262,852
Receivable for securities sold .............................. -- -- 462,755
Collateral held for securities loaned (Note 1) .............. 50,432,523 -- 73,317,420
Receivable from Separate Accounts for Trust shares sold ..... 310,428 1,036,384 2,717,842
Unrealized appreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- -- --
Variation margin receivable on futures contracts ............ -- -- --
Dividends, interest and other receivables ................... 3,596,596 16,422,349 1,664,593
------------ ------------- ----------------
Total assets .............................................. 379,549,092 618,885,164 1,073,841,781
------------ ------------- ----------------
LIABILITIES:
Options written at value (Premiums received: Alliance
Common Stock Portfolio--$195,807,516) (Notes 1 and 4) ...... -- -- --
Payable for securities purchased ............................ 6,519,516 6,000,000 1,314,393
Payable for collateral received on securities loaned ........ 50,432,523 -- 73,317,420
Payable to Separate Accounts for Trust shares redeemed ...... 3,045 111,360 385,084
Unrealized depreciation of forward currency contracts
(Notes 1 and 4) ............................................ -- -- --
Distribution fees payable ................................... -- 42,967 23,059
Investment advisory fees payable ............................ 141,509 327,459 431,187
Trustees' fees payable ...................................... 8,503 13,346 14,207
Accrued expenses ............................................ 15,457 39,613 54,371
------------ ------------- ----------------
Total liabilities ......................................... 57,120,553 6,534,745 75,539,721
------------ ------------- ----------------
NET ASSETS .................................................. $322,428,539 $ 612,350,419 $ 998,302,060
============ ============= ================
Investments at cost ......................................... $322,156,171 $ 663,283,133 $ 853,358,652
============ ============= ================
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................ $319,600,973 $ 712,370,036 $ 848,265,567
Accumulated undistributed (overdistributed) net
investment income ......................................... 397,762 (123,847) 181,017
Accumulated undistributed net realized gain (loss) ......... (462,878) (35,606,124) 7,797,809
Unrealized appreciation/depreciation on investments and
foreign currency denominated assets and liabilities ....... 2,892,682 (64,289,646) 142,057,667
------------ ------------- ----------------
NET ASSETS .................................................. $322,428,539 $ 612,350,419 $ 998,302,060
============ ============= ================
CLASS IA SHARES:
Net Assets .................................................. $322,418,134 $ 405,307,990 $ 877,744,459
============ ============= ================
Shares outstanding (Note 5) ................................. 32,773,456 46,554,081 51,671,674
============ ============= ================
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 9.84 $ 8.71 $ 16.99
============ ============= ================
CLASS IB SHARES:
Net Assets .................................................. $ 10,405 $ 207,042,429 $ 120,557,601
============ ============= ================
Shares outstanding (Note 5) ................................. 1,057 23,834,821 7,111,672
============ ============= ================
Net asset value, offering and redemption price per share
(Note 1) ................................................... $ 9.84 $ 8.69 $ 16.95
============ ============= ================
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------- ------------------ ----------------- ---------------
<S> <C> <C> <C>
$ 1,679,332,205 $13,296,800,242 $1,419,326,019 $203,233,964
140,470 214,471 309,325 10,777,543
9,348,912 92,116,641 1,091,463 20,722
153,710,640 622,787,758 63,260,226 12,321,470
20,636,166 17,299,460 269,705 70,336
-- -- -- 75,536
83,800 -- -- --
1,603,274 7,284,427 939,223 301,159
--------------- --------------- -------------- ------------
1,864,855,467 14,036,502,999 1,485,195,961 226,800,730
--------------- --------------- -------------- ------------
-- 471,793,964 -- --
19,562,086 39,326,310 11,269,168 17,910
153,710,640 622,787,758 63,260,226 12,321,470
684,273 1,426,011 1,172,417 1,899,067
-- -- 285,209 --
86 161,709 9,517 1,517
421,150 3,765,950 735,321 159,323
24,007 390,720 44,494 5,653
97,829 729,759 216,836 85,822
--------------- --------------- -------------- ------------
174,500,071 1,140,382,181 76,993,188 14,490,762
--------------- --------------- -------------- ------------
$ 1,690,355,396 $12,896,120,818 $1,408,202,773 $212,309,968
=============== =============== ============== ============
$ 1,166,232,720 $ 8,864,774,533 $1,144,032,492 $198,762,962
=============== =============== ============== ============
$ 1,162,949,176 $ 8,800,675,491 $1,103,126,360 $208,394,898
533,199 4,587,455 (4,115,630) (487,521)
13,268,212 (65,181,631) 35,234,038 (426,552)
513,604,809 4,156,039,503 273,958,005 4,829,143
--------------- --------------- -------------- ------------
$ 1,690,355,396 $12,896,120,818 $1,408,202,773 $212,309,968
=============== =============== ============== ============
$ 1,689,912,599 $12,061,977,279 $1,360,220,279 $204,767,192
=============== =============== ============== ============
67,609,949 495,266,616 69,913,136 18,395,534
=============== =============== ============== ============
$ 25.00 $ 24.35 $ 19.46 $ 11.13
=============== =============== ============== ============
$ 442,797 $ 834,143,539 $ 47,982,494 $ 7,542,776
=============== =============== ============== ============
17,729 34,331,593 2,471,743 678,688
=============== =============== ============== ============
$ 24.98 $ 24.30 $ 19.41 $ 11.11
=============== =============== ============== ============
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- --------------- ---------------- ------------------- -----------------
<S> <C> <C> <C> <C>
$4,635,521,062 $ 322,743,835 $388,825,890 $ 1,941,246,382 $2,052,290,564
1,564,793 111,473 275,295 726,080 1,007,053
25,481,238 829,212 1,089,556 8,231,609 9,868,736
386,886,300 -- 53,351,626 350,884,795 216,907,649
777,266 1,454,081 732,466 100,554 2,675,398
-- -- 6,714 62,470 125,003
-- -- -- -- --
2,519,122 249,532 2,301,561 9,976,240 5,916,946
-------------- ------------- ------------ --------------- --------------
5,052,749,781 325,388,133 446,583,108 2,311,228,130 2,288,791,349
-------------- ------------- ------------ --------------- --------------
-- -- -- -- --
140,296,740 912,578 4,908,702 21,775,641 15,554,866
386,886,300 -- 53,351,626 350,884,795 216,907,649
22,444,883 13,592,725 14,831 1,208,349 87,969
-- -- -- -- --
29,435 21,404 6,339 -- 17,938
1,927,987 215,106 151,811 653,213 869,690
183,493 2,244 15,337 96,460 57,846
291,908 29,731 40,423 170,011 194,872
-------------- ------------- ------------ --------------- --------------
552,060,746 14,773,788 58,489,069 374,788,469 233,690,830
-------------- ------------- ------------ --------------- --------------
$4,500,689,035 $ 310,614,345 $388,094,039 $ 1,936,439,661 $2,055,100,519
============== ============= ============ =============== ==============
$4,308,145,162 $ 310,712,161 $355,180,851 $ 1,658,268,429 $1,737,873,064
============== ============= ============ =============== ==============
$4,176,552,382 $ 321,191,652 $352,564,451 $ 1,633,744,309 $1,729,488,471
(148,225) (2,244) (38,513) 4,480,474 (1,007,460)
(3,091,022) (22,606,737) 1,923,818 15,152,087 12,852,211
327,375,900 12,031,674 33,644,283 283,062,791 313,767,297
-------------- ------------- ------------ --------------- --------------
$4,500,689,035 $ 310,614,345 $388,094,039 $ 1,936,439,661 $2,055,100,519
============== ============= ============ =============== ==============
$4,346,906,699 $ 198,360,184 $355,441,101 $ 1,936,429,168 $1,963,074,010
============== ============= ============ =============== ==============
127,297,449 16,776,844 28,849,374 104,635,096 98,785,840
============== ============= ============ =============== ==============
$ 34.15 $ 11.82 $ 12.32 $ 18.51 $ 19.87
============== ============= ============ =============== ==============
$ 153,782,336 $ 112,254,161 $ 32,652,938 $ 10,493 $ 92,026,509
============== ============= ============ =============== ==============
4,521,093 9,521,607 2,653,554 567 4,639,271
============== ============= ============ =============== ==============
$ 34.01 $ 11.79 $ 12.31 $ 18.51 $ 19.84
============== ============= ============ =============== ==============
</TABLE>
2
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF OPERATIONS
Year Ended December 31, 1998
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT
MONEY MARKET SECURITIES
PORTFOLIO PORTFOLIO
-------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $2,547,697 from affiliated
companies for the Alliance Aggressive
Stock Portfolio) ................................... $ -- $ --
Interest ............................................. 42,041,562 8,675,579
------------ ------------
Total income ....................................... 42,041,562 8,675,579
------------ ------------
Expenses (Notes 1, 2 and 3):
Investment advisory fee .............................. 2,658,991 754,880
Custodian fees ....................................... 76,032 47,209
Distribution fees--Class IB .......................... 547,381 36,926
Printing and mailing expenses ........................ 85,776 18,721
Professional fees .................................... 16,590 2,078
SEC registration fees ................................ 6,268 970
Trustees' fees ....................................... 8,733 1,937
Miscellaneous ........................................ 9,080 2,642
------------ ------------
Total expenses ..................................... 3,408,851 865,363
------------ ------------
NET INVESTMENT INCOME (LOSS) ........................... 38,632,711 7,810,216
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $35,519,339 and
$44,849,765 from affiliated companies for
the Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... 15,569 3,010,499
On options written ................................... -- --
On foreign currency transactions ..................... -- --
On futures contracts ................................. -- (12,959)
------------ ------------
Realized gain (loss)--net ............................. 15,569 2,997,540
------------ ------------
Change in Unrealized
Appreciation/Depreciation:
On securities ........................................ 580,153 107,461
On options written ................................... -- --
On foreign currency transactions ..................... -- --
On futures contracts ................................. -- 1,345
------------ ------------
Unrealized appreciation/depreciation--net ............. 580,153 108,806
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ............... 595,722 3,106,346
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................................ $ 39,228,433 $ 10,916,562
============ ============
<CAPTION>
ALLIANCE
ALLIANCE ALLIANCE GROWTH AND
QUALITY BOND HIGH YIELD INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ------------------ ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $2,547,697 from affiliated
companies for the Alliance Aggressive
Stock Portfolio) ................................... $ -- $ 84,000 $ 7,456,643
Interest ............................................. 15,657,760 63,140,419 --
------------ -------------- -------------
Total income ....................................... 15,657,760 63,224,419 7,456,643
------------ -------------- -------------
Expenses (Notes 1, 2 and 3):
Investment advisory fee .............................. 1,359,652 3,344,586 4,268,249
Custodian fees ....................................... 62,688 82,719 90,371
Distribution fees--Class IB .......................... 12 361,364 174,743
Printing and mailing expenses ........................ 30,553 68,011 92,740
Professional fees .................................... 5,008 13,086 18,520
SEC registration fees ................................ 567 726 4,228
Trustees' fees ....................................... 3,134 7,149 9,966
Miscellaneous ........................................ 3,925 6,928 10,524
------------ -------------- -------------
Total expenses ..................................... 1,465,539 3,884,569 4,669,341
------------ -------------- -------------
NET INVESTMENT INCOME (LOSS) ........................... 14,192,221 59,339,850 2,787,302
------------ -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTES 1 AND 4):
Realized Gain (Loss):
On securities (including $35,519,339 and
$44,849,765 from affiliated companies for
the Alliance Common Stock and Alliance
Aggressive Stock Portfolios, respectively) ......... 6,541,551 (25,614,101) 80,187,460
On options written ................................... -- -- --
On foreign currency transactions ..................... 80,060 -- --
On futures contracts ................................. -- -- --
------------ -------------- -------------
Realized gain (loss)--net ............................. 6,621,611 (25,614,101) 80,187,460
------------ -------------- -------------
Change in Unrealized
Appreciation/Depreciation:
On securities ........................................ 986,571 (71,913,643) 69,192,430
On options written ................................... -- -- --
On foreign currency transactions ..................... (227,036) -- --
On futures contracts ................................. -- -- --
------------ -------------- -------------
Unrealized appreciation/depreciation--net ............. 759,535 (71,913,643) 69,192,430
------------ -------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ............... 7,381,146 (97,527,744) 149,379,890
------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ............................................ $ 21,573,367 $ (38,187,894) $ 152,167,192
============ ============== =============
</TABLE>
- ----------
* Net of foreign taxes withheld on dividends of $360, $209,666, $1,167,939,
$406,672, $40,153, $391,775 and $543,189 for the Alliance Equity Index,
Alliance Common Stock, Alliance Global, Alliance International, Alliance
Conservative Investors, Alliance Balanced and Alliance Growth Investors
Portfolios, respectively, and on interest of $14,125 for the Alliance
Quality Bond Portfolio.
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
EQUITY INDEX COMMON STOCK GLOBAL INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------- ----------------- ---------------- ---------------
<S> <C> <C> <C>
$ 19,122,386 $ 86,203,386 $ 14,752,313 $ 3,232,148
1,370,159 37,378,241 4,127,993 701,461
------------ -------------- ------------ ------------
20,492,545 123,581,627 18,880,306 3,933,609
------------ -------------- ------------ ------------
4,095,868 39,648,849 8,440,656 1,890,781
161,194 531,065 676,973 304,614
595 1,190,015 82,139 13,284
151,860 1,458,485 185,784 29,246
31,445 313,626 37,967 4,237
7,155 -- 3,564 688
16,269 151,037 19,227 3,064
16,871 363,559 19,270 3,409
------------ -------------- ------------ ------------
4,481,257 43,656,636 9,465,580 2,249,323
------------ -------------- ------------ ------------
16,011,288 79,924,991 9,414,726 1,684,286
------------ -------------- ------------ ------------
13,596,678 938,938,753 116,842,536 4,835,896
-- 355,441,915 -- --
3,951 (801,351) 1,385,818 134,432
213,923 -- -- --
------------ -------------- ------------ ------------
13,814,552 1,293,579,317 118,228,354 4,970,328
------------ -------------- ------------ ------------
291,861,129 1,745,664,003 130,654,898 16,555,416
-- (260,942,993) -- --
(10,468) 390 (6,120,059) (1,575,993)
377,024 -- -- --
------------ -------------- ------------ ------------
292,227,685 1,484,721,400 124,534,839 14,979,423
------------ -------------- ------------ ------------
306,042,237 2,778,300,717 242,763,193 19,949,751
------------ -------------- ------------ ------------
$322,053,525 $2,858,225,708 $252,177,919 $ 21,634,037
============ ============== ============ ============
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ---------------- -------------- --------------- ----------------
<S> <C> <C> <C> <C>
$ 23,762,346 $ 1,255,376 $ 1,028,458 $ 9,448,238 $ 12,646,223
12,833,136 1,182,824 14,407,215 53,093,665 35,821,551
-------------- ------------- ----------- ------------ ------------
36,595,482 2,438,200 15,435,673 62,541,903 48,467,774
-------------- ------------- ----------- ------------ ------------
24,448,459 2,113,891 1,623,816 7,463,502 9,325,669
194,188 106,894 114,505 338,569 407,934
280,406 190,087 40,388 12 148,242
696,284 25,924 47,977 258,776 249,382
148,245 6,319 8,400 54,261 51,701
-- 731 202 -- 4,222
72,226 2,852 4,719 26,130 25,707
61,000 3,514 5,159 26,093 25,248
-------------- ------------- ----------- ------------ ------------
25,900,808 2,450,212 1,845,166 8,167,343 10,238,105
-------------- ------------- ----------- ------------ ------------
10,694,674 (12,012) 13,590,507 54,374,560 38,229,669
-------------- ------------- ----------- ------------ ------------
94,437,250 (21,147,657) 18,206,279 150,711,878 149,734,057
-- -- -- -- --
-- -- (311,424) (1,063,146) (2,223,786)
-- -- -- -- --
-------------- ------------- ----------- ------------ ------------
94,437,250 (21,147,657) 17,894,855 149,648,732 147,510,271
-------------- ------------- ----------- ------------ ------------
(90,382,441) 11,287,980 13,904,809 101,161,924 139,796,045
-- -- -- -- --
-- -- (134,872) (1,382,328) (2,581,489)
-- -- -- -- --
-------------- ------------- ----------- ------------ ------------
(90,382,441) 11,287,980 13,769,937 99,779,596 137,214,556
-------------- ------------- ----------- ------------ ------------
4,054,809 (9,859,677) 31,664,792 249,428,328 284,724,827
------------- ------------- ----------- ------------ ------------
14,749,483 $ (9,871,689) $45,255,299 $303,802,888 $322,954,496
============= ============= =========== ============ ============
</TABLE>
4
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE GOVERNMENT
MONEY MARKET PORTFOLIO SECURITIES PORTFOLIO
------------------------------------ -------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
------------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 38,632,711 $ 24,630,559 $ 7,810,216 $ 5,754,750
Realized gain (loss)--net ................................. 15,569 57,662 2,997,540 995,258
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. 580,153 (45,650) 108,806 715,736
---------------- -------------- ------------- -------------
Net increase (decrease) in net assets from operations ..... 39,228,433 24,642,571 10,916,562 7,465,744
---------------- -------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... (27,368,048) (21,721,933) (6,948,505) (5,646,086)
Distributions from realized gains ........................ (21,660) (30,365) -- --
---------------- -------------- ------------- -------------
Total Class IA dividends and distributions ................ (27,389,708) (21,752,298) (6,948,505) (5,646,086)
---------------- -------------- ------------- -------------
Class IB:
Dividends from net investment income ..................... (11,444,905) (2,801,881) (839,019) (90,108)
Distributions from realized gains ........................ (9,300) (7,892) -- --
---------------- -------------- ------------- -------------
Total Class IB dividends and distributions ................ (11,454,205) (2,809,773) (839,019) (90,108)
---------------- -------------- ------------- -------------
Decrease in net assets from dividends and
distributions ............................................ (38,843,913) (24,562,071) (7,787,524) (5,736,194)
---------------- -------------- ------------- -------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 1,395,774,350 902,735,892 70,532,629 40,498,885
Shares issued in reinvestment of dividends and
distributions .......................................... 27,389,708 21,752,298 6,948,505 5,646,086
Shares redeemed .......................................... (1,150,845,557) (938,706,582) (42,186,626) (21,146,992)
---------------- -------------- ------------- -------------
Total Class IA transactions ............................... 272,318,501 (14,218,392) 35,294,508 24,997,979
---------------- -------------- ------------- -------------
Class IB:
Shares sold .............................................. 412,735,045 158,089,618 26,363,094 5,061,316
Shares issued in reinvestment of dividends and
distributions .......................................... 11,454,205 2,809,773 839,019 90,108
Shares redeemed .......................................... (160,498,113) (39,732,243) (1,510,389) (97,482)
---------------- -------------- ------------- -------------
Total Class IB transactions ............................... 263,691,137 121,167,148 25,691,724 5,053,942
---------------- -------------- ------------- -------------
Net increase in net assets derived from share
transactions ............................................. 536,009,638 106,948,756 60,986,232 30,051,921
---------------- -------------- ------------- -------------
INCREASE IN NET ASSETS ..................................... 536,394,158 107,029,256 64,115,270 31,781,471
NET ASSETS, BEGINNING OF PERIOD ............................ 573,635,450 466,606,194 120,165,896 88,384,425
---------------- -------------- ------------- -------------
NET ASSETS, END OF PERIOD* ................................. $ 1,110,029,608 $ 573,635,450 $ 184,281,166 $ 120,165,896
================ ============== ============= =============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment
income of $(30,306) and $149,936 for the Alliance Money Market Portfolio;
$41,806 and $17,556 for the Alliance Intermediate Government Securities
Portfolio; $397,762 and $321,561 for the Alliance Quality Bond Portfolio;
$(123,847) and $29,459 for the Alliance High Yield Portfolio; $181,017
and $(7,871) for the Alliance Growth and Income Portfolio; $533,199 and
$(17,221) for the Alliance Equity Index Portfolio, as of December 31,
1998 and December 31, 1997, respectively.
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND PORTFOLIO HIGH YIELD PORTFOLIO
- --------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
- ---------------- ---------------- ----------------- ----------------
<S> <C> <C> <C>
$ 14,192,221 $ 11,009,665 $ 59,339,850 $ 29,463,188
6,621,611 5,117,055 (25,614,101) 19,038,590
759,535 (291,468) (71,913,643) 2,081,485
- -------------- ------------- --------------- -------------
21,573,367 15,835,252 (38,187,894) 50,583,263
- -------------- ------------- --------------- -------------
(14,217,744) (11,132,504) (42,986,540) (26,828,709)
(6,441,066) -- (8,030,526) (13,814,454)
- -------------- ------------- --------------- -------------
(20,658,810) (11,132,504) (51,017,066) (40,643,163)
- -------------- ------------- --------------- -------------
(256) -- (16,704,168) (2,657,724)
(209) -- (3,915,248) (2,518,666)
- -------------- ------------- --------------- -------------
(465) -- (20,619,416) (5,176,390)
- -------------- ------------- --------------- -------------
(20,659,275) (11,132,504) (71,636,482) (45,819,553)
- -------------- ------------- --------------- -------------
121,204,490 49,175,799 192,696,791 161,350,185
20,658,810 11,132,504 51,017,066 40,643,163
(23,592,796) (16,801,045) (118,180,171) (52,652,236)
- -------------- ------------- --------------- -------------
118,270,504 43,507,258 125,533,686 149,341,112
- -------------- ------------- --------------- -------------
10,000 -- 160,113,817 63,018,257
465 -- 20,619,416 5,176,390
-- -- (5,903,002) (534,056)
- -------------- ------------- --------------- -------------
10,465 -- 174,830,231 67,660,591
- -------------- ------------- --------------- -------------
118,280,969 43,507,258 300,363,917 217,001,703
- -------------- ------------- --------------- -------------
119,195,061 48,210,006 190,539,541 221,765,413
203,233,478 155,023,472 421,810,878 200,045,465
- -------------- ------------- --------------- -------------
$ 322,428,539 $ 203,233,478 $ 612,350,419 $ 421,810,878
============== ============= =============== =============
<CAPTION>
ALLIANCE
GROWTH AND INCOME ALLIANCE
PORTFOLIO EQUITY INDEX PORTFOLIO
------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
--------------- --------------- ------------------ ----------------
<S> <C> <C> <C>
$ 2,787,302 $ 3,994,742 $ 16,011,288 $ 9,754,995
80,187,460 40,626,845 13,814,552 3,560,666
69,192,430 45,313,202 292,227,685 159,119,452
------------- ------------- -------------- -------------
152,167,192 89,934,789 322,053,525 172,435,113
------------- ------------- -------------- -------------
(2,436,074) (3,997,147) (15,462,444) (10,027,043)
(70,415,789) (31,316,552) (495,835) (3,323,415)
------------- ------------- -------------- -------------
(72,851,863) (35,313,699) (15,958,279) (13,350,458)
------------- ------------- -------------- -------------
(162,340) (65,287) (2,375) (648)
(9,420,614) (1,815,517) (115) (392)
------------- ------------- -------------- -------------
(9,582,954) (1,880,804) (2,490) (1,040)
------------- ------------- -------------- -------------
(82,434,817) (37,194,503) (15,960,769) (13,351,498)
------------- ------------- -------------- -------------
251,966,056 251,418,234 593,669,442 450,997,869
72,851,863 35,313,699 15,958,279 13,350,458
(65,846,350) (17,464,089) (169,374,643) (66,043,438)
------------- ------------- -------------- -------------
258,971,569 269,267,844 440,253,078 398,304,889
------------- ------------- -------------- -------------
75,779,471 31,791,055 289,964 137,857
9,582,954 1,880,804 2,490 1,040
(3,520,202) (4,484) (23,916) (35,558)
------------- ------------- -------------- -------------
81,842,223 33,667,375 268,538 103,339
------------- ------------- -------------- -------------
340,813,792 302,935,219 440,521,616 398,408,228
------------- ------------- -------------- -------------
410,546,167 355,675,505 746,614,372 557,491,843
587,755,893 232,080,388 943,741,024 386,249,181
------------- ------------- -------------- -------------
$ 998,302,060 $ 587,755,893 $1,690,355,396 $ 943,741,024
============= ============= ============== =============
</TABLE>
6
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK PORTFOLIO
-------------------------------------
YEAR ENDED
DECEMBER 31,
1998 1997
------------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) .............................. $ 79,924,991 $ 55,815,739
Realized gain (loss)--net ................................. 1,293,579,317 983,715,133
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. 1,484,721,400 1,046,218,790
---------------- --------------
Net increase (decrease) in net assets from operations ..... 2,858,225,708 2,085,749,662
---------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... (66,892,105) (43,806,963)
Distributions from realized gains ........................ (1,453,774,524) (700,688,717)
---------------- --------------
Total Class IA dividends and distributions ................ (1,520,666,629) (744,495,680)
---------------- --------------
Class IB:
Dividends from net investment income ..................... (1,845,494) (241,911)
Distributions from realized gains ........................ (96,324,343) (16,923,582)
---------------- --------------
Total Class IB dividends and distributions ................ (98,169,837) (17,165,493)
---------------- --------------
Decrease in net assets from dividends and
distributions ............................................ (1,618,836,466) (761,661,173)
---------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 1,061,850,530 1,034,152,489
Shares issued in reinvestment of dividends and
distributions .......................................... 1,520,666,629 744,495,680
Shares redeemed .......................................... (1,054,408,083) (394,260,503)
---------------- --------------
Total Class IA transactions ............................... 1,528,109,076 1,384,387,666
---------------- --------------
Class IB:
Shares sold .............................................. 475,955,734 209,141,659
Shares issued in reinvestment of dividends and
distributions .......................................... 98,169,837 17,165,493
Shares redeemed .......................................... (6,276,804) (643,153)
---------------- --------------
Total Class IB transactions ............................... 567,848,767 225,663,999
---------------- --------------
Net increase in net assets derived from share
transactions ............................................. 2,095,957,843 1,610,051,665
---------------- --------------
INCREASE (DECREASE) IN NET ASSETS .......................... 3,335,347,085 2,934,140,154
NET ASSETS, BEGINNING OF PERIOD ............................ 9,560,773,733 6,626,633,579
---------------- --------------
NET ASSETS, END OF PERIOD* ................................. $ 12,896,120,818 $9,560,773,733
================ ==============
<CAPTION>
ALLIANCE
GLOBAL PORTFOLIO
-------------------------------------
YEAR ENDED
DECEMBER 31,
1998 1997
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) .............................. $ 9,414,726 $ 11,050,762
Realized gain (loss)--net ................................. 118,228,354 101,771,496
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net .............................. 124,534,839 14,062,715
-------------- --------------
Net increase (decrease) in net assets from operations ..... 252,177,919 126,884,973
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income ..................... (15,151,207) (23,003,562)
Distributions from realized gains ........................ (86,201,793) (76,503,591)
-------------- --------------
Total Class IA dividends and distributions ................ (101,353,000) (99,507,153)
-------------- --------------
Class IB:
Dividends from net investment income ..................... (363,521) (319,694)
Distributions from realized gains ........................ (2,973,624) (1,359,092)
-------------- --------------
Total Class IB dividends and distributions ................ (3,337,145) (1,678,786)
-------------- --------------
Decrease in net assets from dividends and
distributions ............................................ (104,690,145) (101,185,939)
-------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold .............................................. 155,109,252 241,147,160
Shares issued in reinvestment of dividends and
distributions .......................................... 101,353,000 99,507,153
Shares redeemed .......................................... (244,390,306) (159,826,842)
-------------- --------------
Total Class IA transactions ............................... 12,071,946 180,827,471
-------------- --------------
Class IB:
Shares sold .............................................. 22,632,466 21,767,932
Shares issued in reinvestment of dividends and
distributions .......................................... 3,337,145 1,678,786
Shares redeemed .......................................... (2,713,553) (1,917,712)
-------------- --------------
Total Class IB transactions ............................... 23,256,058 21,529,006
-------------- --------------
Net increase in net assets derived from share
transactions ............................................. 35,328,004 202,356,477
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS .......................... 182,815,778 228,055,511
NET ASSETS, BEGINNING OF PERIOD ............................ 1,225,386,995 997,331,484
-------------- --------------
NET ASSETS, END OF PERIOD* ................................. $1,408,202,773 $1,225,386,995
============== ==============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment income
of $4,587,455 and $8,941,474 for the Alliance Common Stock Portfolio;
$(4,115,630) and $451,087 for the Alliance Global Portfolio; $(487,521) and
$(1,256,432) for the Alliance International Portfolio; $(148,225) and
$(113,631) for the Alliance Aggressive Stock Portfolio; $(2,244) and $(461)
for the Alliance Small Cap Growth Portfolio; $(38,513) and $35,314 for the
Alliance Conservative Investors Portfolio, as of December 31, 1998 and
December 31, 1997, respectively.
** Commencement of operations.
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL PORTFOLIO AGGRESSIVE STOCK PORTFOLIO
- ----------------------------------- ---------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
- ----------------- ----------------- ------------------- -------------------
<S> <C> <C> <C>
$ 1,684,286 $ 1,609,964 $ 10,694,674 $ 4,499,773
4,970,328 8,394,226 94,437,250 523,431,192
14,979,423 (15,340,188) (90,382,441) (75,825,667)
- ---------------- --------------- ----------------- -----------------
21,634,037 (5,335,998) 14,749,483 452,105,298
- ---------------- --------------- ----------------- -----------------
(3,728,549) (5,505,067) (19,956,153) (6,323,032)
(39,070) (9,560,102) (209,908,935) (381,316,889)
- ---------------- --------------- ----------------- -----------------
(3,767,619) (15,065,169) (229,865,088) (387,639,921)
- ---------------- --------------- ----------------- -----------------
(100,012) (69,625) (496,396) (8,975)
(1,254) (161,535) (6,821,111) (6,038,166)
- ---------------- --------------- ----------------- -----------------
(101,266) (231,160) (7,317,507) (6,047,141)
- ---------------- --------------- ----------------- -----------------
(3,868,885) (15,296,329) (237,182,595) (393,687,062)
- ---------------- --------------- ----------------- -----------------
451,931,751 204,985,168 1,200,293,864 1,331,662,733
3,767,619 15,065,169 229,865,088 387,639,921
(459,041,931) (161,266,462) (1,458,834,640) (1,058,223,800)
- ---------------- --------------- ----------------- -----------------
(3,342,561) 58,783,875 (28,675,688) 661,078,854
- ---------------- --------------- ----------------- -----------------
6,597,093 3,841,704 85,624,198 72,451,903
101,266 231,160 7,317,507 6,047,141
(2,708,158) (234,071) (4,401,173) (608,248)
- ---------------- --------------- ----------------- -----------------
3,990,201 3,838,793 88,540,532 77,890,796
- ---------------- --------------- ----------------- -----------------
647,640 62,622,668 59,864,844 738,969,650
- ---------------- --------------- ----------------- -----------------
18,412,792 41,990,341 (162,568,268) 797,387,886
193,897,176 151,906,835 4,663,257,303 3,865,869,417
- ---------------- --------------- ----------------- -----------------
$ 212,309,968 $ 193,897,176 $ 4,500,689,035 $ 4,663,257,303
================ =============== ================= =================
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
----------------------------------- ---------------------------------
YEAR ENDED MAY 1, 1997** YEAR ENDED
DECEMBER 31, TO DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
----------------- ----------------- ---------------- ----------------
<S> <C> <C> <C>
$ (12,012) $ 16,358 $ 13,590,507 $ 12,201,104
(21,147,657) 1,627,719 17,894,855 13,986,324
11,287,980 743,694 13,769,937 10,167,050
--------------- ------------- ------------- -------------
(9,871,689) 2,387,771 45,255,299 36,354,478
--------------- ------------- ------------- -------------
(16,814) (16,325) (12,787,640) (11,954,796)
-- (2,163,100) (18,882,918) (9,269,071)
--------------- ------------- ------------- -------------
(16,814) (2,179,425) (31,670,558) (21,223,867)
--------------- ------------- ------------- -------------
-- (904) (702,882) (74,433)
-- (1,071,973) (1,574,187) (163,419)
--------------- ------------- ------------- -------------
-- (1,072,877) (2,277,069) (237,852)
--------------- ------------- ------------- -------------
(16,814) (3,252,302) (33,947,627) (21,461,719)
--------------- ------------- ------------- -------------
625,198,674 154,901,196 44,384,823 34,060,741
16,814 2,179,425 31,670,558 21,223,868
(515,462,936) (62,293,798) (39,710,758) (44,876,250)
--------------- ------------- ------------- -------------
109,752,552 94,786,823 36,344,623 10,408,359
--------------- ------------- ------------- -------------
72,962,781 46,064,536 25,242,172 5,707,042
-- 1,072,877 2,277,069 237,851
(3,211,937) (60,253) (618,411) (107,498)
--------------- ------------- ------------- -------------
69,750,844 47,077,160 26,900,830 5,837,395
--------------- ------------- ------------- -------------
179,503,396 141,863,983 63,245,453 16,245,754
--------------- ------------- ------------- -------------
169,614,893 140,999,452 74,553,125 31,138,513
140,999,452 -- 313,540,914 282,402,401
--------------- ------------- ------------- -------------
$ 310,614,345 $ 140,999,452 $ 388,094,039 $ 313,540,914
=============== ============= ============= =============
</TABLE>
8
<PAGE>
THE HUDSON RIVER TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Concluded)
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED PORTFOLIO GROWTH INVESTORS PORTFOLIO
------------------------------------- -------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income .............................. $ 54,374,560 $ 55,060,063 $ 38,229,669 $ 32,794,295
Realized gain--net ................................. 149,648,732 113,021,038 147,510,271 121,986,091
Change in unrealized appreciation/depreciation of
investments and foreign currency denominated
assets and liabilities--net ....................... 99,779,596 65,873,768 137,214,556 78,749,885
-------------- -------------- -------------- --------------
Net increase in net assets from operations ......... 303,802,888 233,954,869 322,954,496 233,530,271
-------------- -------------- -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Class IA:
Dividends from net investment income .............. (48,802,014) (54,844,131) (36,481,422) (37,426,355)
Distributions from realized gains ................. (161,293,799) (84,244,038) (156,501,489) (84,649,354)
-------------- -------------- -------------- --------------
Total Class IA dividends and distributions ......... (210,095,813) (139,088,169) (192,982,911) (122,075,709)
-------------- -------------- -------------- --------------
Class IB:
Dividends from net investment income .............. (106) -- (1,186,181) (527,651)
Distributions from realized gains ................. (872) -- (7,045,472) (1,840,006)
-------------- -------------- -------------- --------------
Total Class IB dividends and distributions ......... (978) -- (8,231,653) (2,367,657)
-------------- -------------- -------------- --------------
Decrease in net assets from dividends and
distributions ..................................... (210,096,791) (139,088,169) (201,214,564) (124,443,366)
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTES 1 AND 5):
Class IA:
Shares sold ....................................... 90,787,180 64,626,322 120,550,111 177,931,189
Shares issued in reinvestment of dividends and
distributions ................................... 210,095,813 139,088,169 192,982,911 122,075,709
Shares redeemed ................................... (182,248,936) (212,348,166) (99,572,371) (80,173,883)
-------------- -------------- -------------- --------------
Total Class IA transactions ........................ 118,634,057 (8,633,675) 213,960,651 219,833,015
-------------- -------------- -------------- --------------
Class IB:
Shares sold ....................................... 10,000 -- 50,028,647 34,376,432
Shares issued in reinvestment of dividends and
distributions ................................... 978 -- 8,231,653 2,367,657
Shares redeemed ................................... -- -- (4,979,079) (1,660,277)
-------------- -------------- -------------- --------------
Total Class IB transactions ........................ 10,978 -- 53,281,221 35,083,812
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets derived from
share transactions ................................ 118,645,035 (8,633,675) 267,241,872 254,916,827
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS .............................. 212,351,132 86,233,025 388,981,804 364,003,732
NET ASSETS, BEGINNING OF PERIOD ..................... 1,724,088,529 1,637,855,504 1,666,118,715 1,302,114,983
-------------- -------------- -------------- --------------
NET ASSETS, END OF PERIOD* .......................... $1,936,439,661 $1,724,088,529 $2,055,100,519 $1,666,118,715
============== ============== ============== ==============
</TABLE>
- ----------
* Including accumulated undistributed (overdistributed) net investment
income of $4,480,474 and $84,008 for the Alliance Balanced Portfolio;
$(1,007,460) and $(1,463,848) for the Alliance Growth Investors
Portfolio, as of December 31, 1998 and December 31, 1997, respectively.
See Notes to Financial Statements.
9
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
-------------- -------------- ----------
<S> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANK NOTES
Abbey National Treasury Services
Due 01/20/99 .................................. $29,400,000 $29,406,356 5.79%
First Union Bank
Due 04/01/99 .................................. 35,000,000 35,027,541 5.19
-----------
TOTAL BANK NOTES (5.8%) ...................... 64,433,897
-----------
BANKERS' ACCEPTANCES
First National Bank Chicago
Due 06/07/99 .................................. 12,000,000 11,732,053 4.92
Wachovia Bank and Trust Co. NA
Due 03/01/99 .................................. 25,000,000 25,012,313 5.17
-----------
TOTAL BANKERS' ACCEPTANCES (3.3%) ............ 36,744,366
-----------
CERTIFICATES OF DEPOSIT
FCC National Bank
Due 03/17/99 ................................. 20,000,000 20,013,962 5.21
Rabobank Nederland N.V.:
Due 02/02/99 .................................. 14,000,000 14,005,127 5.77
Due 04/27/99 .................................. 3,500,000 3,507,967 5.82
Royal Bank of Canada, New York
Due 02/24/99 .................................. 9,000,000 9,005,611 5.77
Swiss Bank Corp.
Due 03/24/99 .................................. 25,000,000 25,032,335 5.69
-----------
TOTAL CERTIFICATES OF DEPOSIT (6.5%) ......... 71,565,002
-----------
COMMERCIAL PAPER
Allianz of America Financial, Inc.
Due 02/23/99+ ................................. 35,000,000 34,755,241 5.16
American General Corp.
Due 03/15/99 .................................. 25,000,000 24,760,215 5.19
Associates Corp. of North America
Due 03/29/99 .................................. 35,000,000 34,599,919 5.09
Bank of America
Due 04/15/99 .................................. 35,000,000 34,522,754 5.12
Banque Caisse
Due 06/07/99 .................................. 35,000,000 34,279,543 4.98
Cargill Finance Corp.
Due 03/05/99 .................................. 2,343,000 2,323,606 5.09
CC (USA) Corp.
Due 02/26/99 .................................. 25,000,000 24,815,278 5.11
Ford Motor Credit Co.
Due 06/10/99 .................................. 35,000,000 34,265,777 4.96
General Electric Capital Corp.
Due 04/30/99 .................................. 15,000,000 14,765,966 5.14
General Motors Acceptance Corp.
Due 02/16/99 .................................. 25,000,000 24,848,263 5.27
Koch Industries
Due 01/04/99+ ................................. 50,000,000 49,979,414 5.05
Morgan Stanley Group, Inc.
Due 03/24/99 .................................. 35,000,000 34,622,914 5.26
Motorola, Inc.
Due 03/19/99 .................................. 33,700,000 33,359,057 5.10
National City Corp.
Due 05/10/99 .................................. 25,500,000 25,068,708 5.04
National Rural Utilities Finance Corp.
Due 03/17/99 .................................. 13,000,000 12,871,895 5.08
Prudential Funding Corp.
Due 02/18/99 .................................. 25,000,000 24,841,665 5.27
</TABLE>
10
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
EFFECTIVE
PRINCIPAL VALUE ANNUAL
AMOUNT (NOTE 1) YIELD*
-------------- ---------------- ----------
<S> <C> <C> <C>
Republic National Bank, New York
Due 03/15/99 ......................................... $35,000,000 $ 34,664,300 5.10%
Southwestern Bell Corp.
Due 01/21/99 ......................................... 20,000,000 19,947,000 5.70
Suntrust Bank
Due 01/29/99 ......................................... 20,000,000 19,925,800 5.54
Wells Fargo Bank
Due 03/15/99 ......................................... 33,000,000 32,679,468 5.15
--------------
TOTAL COMMERCIAL PAPER (49.7%) ...................... 551,896,783
--------------
TIME DEPOSIT (1.5%)
Canadian Imperial Bank
Due 01/04/99 ......................................... 16,700,000 16,700,693 5.25
--------------
U.S. GOVERNMENT AGENCIES
Federal Farm Credit Bank
Due 03/01/99 ......................................... 35,000,000 35,030,820 4.90
Federal Home Loan Mortgage Corp.
Due 02/26/99 ......................................... 35,000,000 34,763,166 5.04
Federal National Mortgage Association
Due 03/03/99 ......................................... 35,000,000 34,740,241 5.05
--------------
TOTAL U.S. GOVERNMENT AGENCIES (9.4%) ............... 104,534,227
--------------
VARIABLE RATE SECURITIES
Asset Backed Capital Financial
Due 07/22/99(a)+ ..................................... 25,000,000 25,006,520 5.69
Credit Suisse First Boston
Due 04/14/99(a)+ ..................................... 30,000,000 30,003,339 5.44
Federal Home Loan Bank
Due 08/12/99(a) ...................................... 25,000,000 25,001,883 5.33
General Electric Capital Corp., Series 1
Due 06/04/99(a) ...................................... 25,000,000 25,000,860 5.55
Royal Bank of Canada, New York
Due 08/25/99(a) ...................................... 20,000,000 20,001,762 5.26
Sigma Finance
Due 08/23/99(a)+ ..................................... 25,000,000 25,002,295 5.20
SMM Trust, Series 1998-B
Due 03/05/99(a)+ ..................................... 15,000,000 15,000,846 5.62
Student Loan Marketing Association
Due 11/09/99(a) ...................................... 35,000,000 35,003,808 5.44
Wachovia Bank and Trust Co. NA
Due 02/19/99(a) ...................................... 20,000,000 20,003,672 5.49
--------------
TOTAL VARIABLE RATE SECURITIES (19.8%) .............. 220,024,985
--------------
TOTAL INVESTMENTS IN SHORT-TERM DEBT SECURITIES (96.0%)
(Amortized Cost $1,065,207,929)....................... 1,065,899,953
OTHER ASSETS
LESS LIABILITIES (4.0%) .............................. 44,129,655
--------------
NET ASSETS (100.0%) ................................... $1,110,029,608
==============
</TABLE>
- ----------
* Based on market values at the close of business on December 31, 1998.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $179,747,655
or 16.2% of net assets.
(a) Coupon will fluctuate based upon an interest rate index. Stated due date
reflects final maturity of security.
See Notes to Financial Statements.
11
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------- ----------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
COLLATERALIZED MORTGAGE OBLIGATIONS (1.8%)
Allied Capital Commercial
Mortgage Trust
6.31%, 09/25/03 .................. $ 3,295,480 $ 3,306,289
------------
MORTGAGE RELATED (47.8%)
Amresco Residential Securities
Mortgage Loan Trust
5.94%, 03/25/15 .................. 4,500,000 4,443,750
Countrywide Home Equity Loan
Trust
5.94%, 10/15/24 .................. 2,909,095 2,858,186
Federal Farm Credit Bank
6.29%, 08/25/04 .................. 4,700,000 4,935,752
Federal Home Loan Bank
5.77%, 02/03/04 .................. 6,430,000 6,574,675
Federal Home Loan Mortgage
Corp. GOLD
9.5%, 01/01/20 ................... 4,799 5,111
Federal National Mortgage
Association:
7.0%, 12/01/07 ................... 481,358 491,587
7.0%, 08/01/10 ................... 608,157 621,080
7.0%, 10/01/10 ................... 452,382 461,995
7.0%, 12/01/10 ................... 433,401 442,610
7.0%, 01/01/11 ................... 557,138 568,978
7.0%, 04/01/11 ................... 478,522 488,691
7.0%, 05/01/11 ................... 459,080 468,835
7.0%, 06/01/11 ................... 611,489 624,483
7.0%, 07/01/11 ................... 588,025 600,521
7.0%, 10/01/11 ................... 1,062,324 1,084,898
7.0%, 05/01/12 ................... 1,078,657 1,101,578
7.0%, 06/01/12 ................... 1,066,769 1,089,437
7.0%, 07/01/12 ................... 397,660 406,110
7.0%, 08/01/12 ................... 485,234 495,546
7.0%, 09/01/12 ................... 805,075 822,183
7.0%, 10/01/12 ................... 2,132,470 2,177,786
7.0%, 11/01/12 ................... 4,606,692 4,704,584
7.0%, 12/01/12 ................... 605,771 618,643
6.5%, 01/01/13 ................... 4,160,448 4,216,356
7.0%, 01/01/13 ................... 537,136 548,550
6.5%, 02/01/13 ................... 1,421,969 1,441,078
6.5%, 03/01/13 ................... 1,397,968 1,416,754
7.0%, 05/01/13 ................... 417,684 426,559
6.5%, 06/01/13 ................... 6,385,306 6,471,111
6.5%, 07/01/13 ................... 1,512,861 1,533,191
6.5%, 11/01/13 ................... 3,240,476 3,284,022
30 Year TBA GOLD
6.5%, 12/01/28 ................... 14,000,000 14,105,126
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------- ----------------
<S> <C> <C>
Green Tree Home Improvement
Loan Trust
6.25%, 08/15/29 .................. $ 5,000,000 $ 5,034,400
Morgan Stanley Capital I, Series
1998-XL2, Class A2
6.17%, 10/03/08 .................. 4,000,000 4,047,520
Nomura Depositor Trust
5.936%, 01/15/03 ................. 3,249,674 3,166,904
Prudential Home Mortgage
Securities:
7.5%, 07/25/23 ................... 6,095,750 6,202,387
8.15%, 01/25/24 .................. 171,598 172,135
------------
88,153,112
------------
U.S. GOVERNMENT & AGENCIES (65.8%)
Tennessee Valley Authority
6.5%, 08/20/01 ................... 5,400,000 5,589,864
U.S. Treasury:
5.125% Note, 08/31/00 ............ 31,000,000 31,242,203
5.75% Note, 10/31/00 ............. 11,000,000 11,209,693
4.625% Note, 11/30/00 ............ 4,900,000 4,903,062
6.125% Note, 12/31/01 ............ 24,300,000 25,279,606
5.75% Note, 08/15/03 ............. 12,000,000 12,525,000
4.25% Note, 11/15/03 ............. 7,000,000 6,908,125
11.875% Bond, 11/15/03 ........... 6,300,000 8,219,534
6.625% Note, 05/15/07 ............ 9,000,000 10,122,192
4.75% Note, 11/15/08 ............. 5,100,000 5,139,846
------------
121,139,125
------------
TOTAL LONG-TERM DEBT SECURITIES (115.4%)
(Amortized Cost $211,154,160). 212,598,526
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
4.77%, due 01/20/99 ............. 10,000,000 9,973,083
Federal Home Loan Mortgage
Corp.
4.7%, due 01/04/99 .............. 3,300,000 3,298,708
------------
TOTAL U.S. GOVERNMENT AGENCIES (7.2%) 13,271,791
------------
TOTAL SHORT-TERM DEBT SECURITIES (7.2%)
(Amortized Cost $13,271,791)...... 13,271,791
------------
TOTAL INVESTMENTS (122.6%)
(Amortized Cost $224,425,951)..... 225,870,317
OTHER ASSETS
LESS LIABILITIES* (--22.6%) ..... (41,589,151)
------------
NET ASSETS (100.0%) ............... $184,281,166
============
</TABLE>
- ----------
<TABLE>
<CAPTION>
Financial Futures Contracts outstanding at December 31,
1998: UNREALIZED
EXPIRATION NUMBER ORIGINAL VALUE AT APPRECIATION
DESCRIPTION DATE OF CONTRACTS VALUE 12/31/98 (DEPRECIATION)
- ------------------------------------------ ------------ -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Long 2-Year U.S. Treasury Note ........... 3/99 78 $16,549,406 $16,498,219 $ (51,187)
Short 10-Year U.S. Treasury Note ......... 3/99 41 4,937,938 4,885,406 52,532
---------
$ 1,345
=========
</TABLE>
- ----------
* Includes $33,447 cash held as collateral on financial futures contracts.
See Notes to Financial Statements.
12
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.3%)
CHEMICALS
Reliance Industries Ltd.
10.375%, 06/24/16+ ................ $ 1,100,000 $ 884,840
------------
CONSUMER NONCYCLICALS
MEDIA & CABLE
Time Warner Entertainment Co.
8.375%, 03/15/23 .................. 5,700,000 6,919,686
Turner Broadcasting System, Inc.
8.375%, 07/01/13 .................. 2,450,000 2,928,436
------------
TOTAL CONSUMER NONCYCLICALS (3.1%) 9,848,122
------------
CREDIT SENSITIVE
BANKS (1.4%)
Chase Manhattan Corp.
6.375%, 04/01/08 .................. 4,500,000 4,668,300
------------
FINANCIAL SERVICES (8.9%)
Associates Corp. of North America
5.75%, 11/01/03 ................... 5,500,000 5,549,335
General Motors Acceptance Corp.
6.375%, 12/01/01 .................. 13,000,000 13,317,200
Prudential Insurance Co.
8.3%, 07/01/25 .................... 8,000,000 9,714,600
------------
28,581,135
------------
UTILITY--ELECTRIC (1.9%)
Dominion Resources Capital
Trust I
7.83%, 12/01/27 ................... 5,925,000 6,210,881
------------
TOTAL CREDIT SENSITIVE (12.2%) 39,460,316
------------
ENERGY (2.5%)
COAL & GAS PIPELINES
Williams Companies, Inc.
6.125%, 02/01/01 .................. 8,055,000 8,065,794
------------
U.S. GOVERNMENT AGENCIES
MORTGAGE RELATED
Federal Home Loan Mortgage
Corp.:
7.0%, 09/01/11 .................... 5,315,128 5,431,396
7.5%, 04/01/28 .................... 3,928,833 4,033,195
Federal National Mortgage
Association:
5.25%, 01/15/03 ................... 17,790,000 17,912,217
6.5%, 06/01/11 .................... 9,410,648 9,537,109
6.5%, 09/01/11 .................... 1,545,779 1,566,552
7.0%, 02/01/13 .................... 4,173,433 4,264,727
6.5%, 05/01/13 .................... 4,691,984 4,755,035
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
7.0%, 05/01/26 .................... $ 1,541,579 $ 1,571,447
7.0%, 01/01/28 .................... 2,422,433 2,469,368
6.5%, 03/01/28 .................... 1,320,513 1,327,940
6.5%, 09/01/28 .................... 1,985,896 1,997,067
6.5%, 10/01/28 .................... 992,217 997,798
6.5%, 12/01/28 .................... 5,527,500 5,558,592
8.0% 30 Year TBA, 12/01/28 ........ 6,300,000 6,523,146
Government National Mortgage
Association:
7.0%, 11/15/26 .................... 9,297,570 9,509,647
7.0%, 07/15/27 .................... 2,649,152 2,709,580
7.0%, 02/15/28 .................... 8,206,492 8,393,681
6.5%, 03/15/28 .................... 3,539,241 3,573,536
6.5%, 04/15/28 .................... 2,774,749 2,801,636
6.5%, 05/15/28 .................... 369,392 372,972
7.0%, 12/15/28 .................... 15,075,000 15,418,861
------------
TOTAL U.S. GOVERNMENT AGENCIES (34.3%)
110,725,502
------------
U.S. GOVERNMENT
U.S. Treasury:
6.5% Note, 08/31/01 ............... 20,600,000 21,533,448
6.5% Note, 05/31/02 ............... 38,000,000 40,125,644
5.75% Note, 08/15/03 .............. 30,500,000 31,834,375
4.25% Note, 11/15/03 .............. 5,125,000 5,057,734
6.875% Note, 05/15/06 ............. 1,000,000 1,130,313
5.625% Note, 05/15/08 ............. 16,325,000 17,416,735
6.125% Bond, 11/15/27 ............. 14,300,000 16,016,000
5.25% Bond, 11/15/28 .............. 10,200,000 10,455,000
------------
TOTAL U.S. GOVERNMENT (44.5%)
143,569,249
------------
TOTAL LONG-TERM DEBT SECURITIES (96.9%)
(Amortized Cost $309,661,067)...... 312,553,823
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (3.9%)
Federal Home Loan
Mortgage Corp.
4.7%, due 01/04/99 ................ 12,500,000 12,495,104
------------
TOTAL SHORT-TERM DEBT SECURITIES (3.9%)
(Amortized Cost $12,495,104)....... 12,495,104
------------
TOTAL INVESTMENTS (100.8%)
(Amortized Cost $322,156,171)...... 325,048,927
OTHER ASSETS
LESS LIABILITIES (-0.8%) ......... (2,620,388)
------------
NET ASSETS (100.0%) ................ $322,428,539
=============
</TABLE>
- ----------
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $884,840 or
0.3% of net assets.
See Notes to Financial Statements.
13
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
Pegasus Communications Corp.
(Class A)* ........................... 3,384 $ 84,811
------------
TRUCKING, SHIPPING (0.0%)
Millenium SeaCarriers, Inc.--
Warrants (expire 07/15/05)* .......... 6,000 0
------------
TOTAL BUSINESS SERVICES (0.0%) 84,811
------------
CAPITAL GOODS (0.0%)
BUILDING & CONSTRUCTION
Capital Pacific Holdings,
Inc.--Warrants
(expire 05/01/02)* ................... 11,850 8,887
------------
CONSUMER CYCLICALS
LEISURE RELATED (0.0%)
Discovery Zone--Warrants
(expire 08/01/07)*+ .................. 3,500 4
------------
RETAIL--GENERAL (0.0%)
FTD Corp.*+ ............................ 37,500 18,750
V2 Music Holdings--Warrants
(expire 04/15/08)* ................... 8,000 0
------------
18,750
------------
TOTAL CONSUMER CYCLICALS (0.0%) 18,754
------------
CONSUMER NONCYCLICALS
HOSPITAL SUPPLIES & SERVICES (0.0%)
Wright Medical Technology, Inc.--
Warrants (expire 06/30/03)* .......... 618 6
------------
SOAPS & TOILETRIES (0.0%)
Renaissance Cosmetics, Inc.--
Warrants (expire 08/15/01)* .......... 2,000 2
------------
TOTAL CONSUMER NONCYCLICALS (0.0%) 8
------------
TECHNOLOGY
ELECTRONICS (0.0%)
Interactive Systems Corp.--
Warrants (expire 08/01/03)* .......... 1,500 187
------------
TELECOMMUNICATIONS (0.1%)
American Mobile Satellite
Corp.--Warrants
(expire 04/01/08)* ................... 6,900 26,772
DTI Holdings, Inc.--Warrants
(expire 03/01/08)* ................... 50,000 0
Firstworld Communications--
Warrants (expire 04/15/08)* .......... 7,000 0
Knology Holdings, Inc.--
Warrants (expire 10/15/07)* .......... 15,000 37,500
Long Distance International,
Inc.--Warrants
(expire 04/13/08)* ................... 5,000 0
Optel, Inc.* ........................... 10,000 350,000
Orion Network Systems, Inc.--
Warrants (expire 01/15/07)* .......... 4,000 44,000
PathNet, Inc.--Warrants
(expire 04/15/08)* ................... 5,000 0
Primus Telecommunications--
Warrants (expire 08/01/04)* .......... 6,500 81,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -------------------
<S> <C> <C>
Splitrock Services, Inc.--
Warrants (expire 07/15/08)* .......... 8,000 $ 0
Versatel Telecommunications--
Warrants (expire 05/15/08)* .......... 5,800 0
21st Century Telecom Group--
Warrants (expire 02/15/10)* .......... 4,000 0
------------
539,522
------------
TOTAL TECHNOLOGY (0.1%) .............. 539,709
------------
TOTAL COMMON STOCKS AND
OTHER INVESTMENTS (0.1%)
(Cost $118,420)....................... 652,169
------------
PREFERRED STOCKS:
CONSUMER NONCYCLICALS (0.3%)
HOSPITAL SUPPLIES & SERVICES
HH Acquisition Corp.
13.5% ................................ 2,000 1,739,783
------------
TECHNOLOGY (0.4%)
TELECOMMUNICATIONS
21st Century Telecom Group
13.75%* (b) .......................... 4,327 2,812,641
------------
TOTAL PREFERRED STOCKS (0.7%)
(Cost $5,999,750)..................... 4,552,424
------------
PRINCIPAL
AMOUNT
----------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS
CHEMICALS (3.3%)
Aqua Chemicals, Inc.
11.25%, 07/01/08+ .................... $6,500,000 6,240,000
Brunner Mond Group PLC
11.0%, 07/15/08+ ..................... 10,000,000 9,200,000
Geo Specialty Chemicals
10.125%, 08/01/08+ ................... 5,000,000 4,800,000
------------
20,240,000
------------
METALS & MINING (2.3%)
Golden Northwest Aluminum
12.0%, 12/15/06+ ..................... 6,000,000 6,030,000
Murrin Murrin Holdings
9.375%, 08/31/07 ..................... 2,500,000 2,200,000
P&L Coal Holdings Corp.
(Series B)
9.625%, 05/15/08 ..................... 6,100,000 6,161,000
------------
14,391,000
------------
PAPER (2.0%)
Doman Industries Ltd.
8.75%, 03/15/04 ...................... 4,300,000 3,397,000
Pen Tab Industries, Inc.
(Series B)
10.875%, 02/01/07 .................... 3,500,000 3,097,500
Stone Container Corp.
9.875%, 02/01/01 ..................... 5,500,000 5,568,750
------------
12,063,250
------------
TOTAL BASIC MATERIALS (7.6%) ......... 46,694,250
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.2%)
ATC Group Services, Inc.
12.0%, 01/15/08 ...................... 5,500,000 990,000
------------
</TABLE>
14
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
PRINTING, PUBLISHING &
BROADCASTING (3.0%)
Cellco Finance N.V.
15.0%, 08/01/05+ ................. $ 4,500,000 $3,870,000
Filtronic Comtek PLC
10.0%, 12/01/05 .................. 5,000,000 5,012,500
GOSS Graphic Systems, Inc.
12.0%, 10/15/06 .................. 4,650,000 2,464,500
Radio One, Inc. (Series B)
7.0%, 05/15/04 (c) ............... 5,000,000 5,000,000
Supercanal Holding SA
10.125%, 05/15/02+ ............... 1,738,812 1,738,812
----------
18,085,812
----------
PROFESSIONAL SERVICES (1.7%)
Employee Solutions, Inc.
(Series B)
10.0%, 10/15/04 .................. 3,250,000 2,437,500
Primark Corp.
9.25%, 12/15/08 .................. 4,000,000 4,020,000
T/SF Communications Corp.
Series B
10.375%, 11/01/07 ................ 4,000,000 4,030,000
----------
10,487,500
----------
TRUCKING, SHIPPING (2.8%)
Millenium SeaCarriers, Inc.
12.0%, 07/15/05(d)+ .............. 6,000,000 4,950,000
MTL, Inc.
10.0%, 06/15/06+ ................. 3,500,000 3,395,000
Navigator Gas Transport PLC
10.5%, 06/30/07+ ................. 2,000,000 1,850,000
Stena Line AB
10.625%, 06/01/08 ................ 8,000,000 7,200,000
----------
17,395,000
----------
TOTAL BUSINESS SERVICES (7.7%) 46,958,312
----------
CAPITAL GOODS
BUILDING & CONSTRUCTION (0.7%)
MMI Products, Inc. (Series B)
11.25%, 04/15/07 ................. 4,000,000 4,320,000
----------
ELECTRICAL EQUIPMENT (1.5%)
Elgar Holdings, Inc.
9.875%, 02/01/08 ................. 2,250,000 2,002,500
Trench Elec & Trench, Inc.
10.25%, 12/15/07 ................. 4,000,000 3,760,000
Wesco International, Inc.
(Series B)
Zero Coupon, 06/01/08 (a) ........ 5,000,000 3,062,500
----------
8,825,000
----------
MACHINERY (2.7%)
Generac Portable Products
11.25%, 07/01/06+ ................ 7,000,000 7,000,000
Penhall Acquisition Corp.
12.0%, 08/01/06+ ................. 5,000,000 4,700,000
Tokheim Corp.
12.5%, 10/01/05 .................. 5,000,000 5,000,000
----------
16,700,000
----------
TOTAL CAPITAL GOODS (4.9%) ....... 29,845,000
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
CONSUMER CYCLICALS
AIRLINES (2.1%)
Aircraft Service International
Group
11.0%, 08/15/05+ ................. $ 4,000,000 $3,960,000
Amtran, Inc.
9.625%, 12/15/05 ................. 3,500,000 3,500,000
Canadian Airlines Corp.
12.25%, 08/01/06 ................. 3,500,000 2,380,000
Trans World Airlines
11.375%, 03/01/06+ ............... 5,000,000 3,150,000
----------
12,990,000
----------
APPAREL, TEXTILE (1.3%)
AAI.Fostergrant, Inc. (Series B)
10.75%, 07/15/06 ................. 6,000,000 5,220,000
NTEX, Inc.
11.5%, 06/01/06 .................. 3,000,000 2,820,000
----------
8,040,000
----------
AUTOS & TRUCKS (1.0%)
Sonic Automotive, Inc. (Series B)
11.0%, 08/01/08 .................. 6,250,000 6,000,000
----------
FOOD SERVICES, LODGING (2.6%)
HMH Properties, Inc. (Series C)
8.45%, 12/01/08 .................. 1,000,000 1,000,000
NE Restaurant Co. Ltd.
10.75%, 07/15/08 ................. 9,000,000 9,045,000
Romacorp, Inc.
12.0%, 07/01/06+ ................. 6,000,000 5,970,000
----------
16,015,000
----------
HOUSEHOLD FURNITURE,
APPLIANCES (2.8%)
Home Interiors & Gifts, Inc.
10.125%, 06/01/08+ ............... 10,000,000 9,900,000
Salton/Maxim Housewares
10.75%, 12/15/05+ ................ 3,000,000 3,018,750
Sealy Mattress Co. (Series B)
9.875%, 12/15/07+ ................ 2,750,000 2,612,500
Spin Cycle, Inc.
Zero Coupon, 05/01/05 (a) (d)..... 4,000,000 1,840,000
----------
17,371,250
----------
LEISURE RELATED (3.7%)
Discovery Zone
13.5%, 08/01/02 .................. 3,500,000 700,000
Harrahs Operating Co., Inc.
7.875%, 12/05/05 ................. 10,000,000 10,000,000
Hedstrom Corp.
10.0%, 06/01/07 .................. 6,000,000 5,100,000
Silverleaf Resorts, Inc.
10.5%, 04/01/08 .................. 3,000,000 2,572,500
Waterford Gaming LLC
12.75%, 11/15/03 ................. 3,784,000 4,143,480
----------
22,515,980
----------
</TABLE>
15
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
RETAIL--GENERAL (1.0%)
Pantry, Inc.
12.0%, 11/15/00 ................... $2,150,000 $ 2,246,750
V2 Music Holdings
Zero Coupon, 04/15/08 (a)+ ........ 8,000,000 3,680,000
-----------
5,926,750
-----------
TOTAL CONSUMER CYCLICALS (14.5%) 88,858,980
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.6%)
TM Group Holdings
11.0%, 05/15/08+ .................. 10,000,000 10,000,000
-----------
CONTAINERS (1.0%)
Anchor Glass Corp.
11.25%, 04/01/05 .................. 4,000,000 4,240,000
MVE, Inc.
12.5%, 02/15/02 ................... 2,000,000 1,980,000
-----------
6,220,000
-----------
FOODS (2.5%)
Grupo Azucarero Mexico SA
11.5%, 01/15/05 ................... 6,000,000 2,100,000
Imperial Holly Corp.
9.75%, 12/15/07 ................... 6,000,000 5,940,000
Specialty Foods Corp. (Series B)
11.125%, 10/01/02 ................. 8,000,000 7,360,000
-----------
15,400,000
-----------
MEDIA & CABLE (2.2%)
HMV Media Group PLC
10.25%, 05/15/08 .................. 3,300,000 3,168,000
Jones International
Networks Ltd.
11.75%, 07/01/05 .................. 5,000,000 4,000,000
Radio Unica Corp.
Zero Coupon, 08/01/06 (a)+ ........ 2,950,000 1,593,000
TVN Entertainment Corp.
14.0%, 08/01/08 (d) ............... 5,000,000 4,400,000
-----------
13,161,000
-----------
RETAIL--FOODS (0.9%)
Digiorgio Corp. (Series B)
10.0%, 06/15/07 ................... 6,000,000 5,460,000
-----------
TOTAL CONSUMER NONCYCLICALS (8.2%) 50,241,000
-----------
CREDIT SENSITIVE
BANKS (1.0%)
Tokai Bank
9.98%, 12/29/49 (c)+ .............. 7,000,000 5,950,000
-----------
FINANCIAL SERVICES (2.1%)
Bulong Operations Property Ltd.
12.5%, 12/15/08+ .................. 5,000,000 5,000,000
Metris Companies, Inc.
10.0%, 11/01/04 ................... 8,000,000 7,920,000
-----------
12,920,000
-----------
UTILITY--ELECTRIC (1.7%)
Cogentrix Energy, Inc.
8.75%, 10/15/08+ .................. 10,000,000 10,700,000
-----------
TOTAL CREDIT SENSITIVE (4.8%) ..... 29,570,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
ENERGY
COAL & GAS PIPELINES (0.4%)
Chesapeake Energy Corp.
(Series B)
9.625%, 05/01/05 .................. $3,200,000 $ 2,464,000
-----------
OIL--DOMESTIC (3.4%)
Bayard Drilling Technologies,
Inc.
11.0%, 06/30/05 ................... 4,000,000 4,400,000
Doe Run Resources Corp.
(Series B)
11.25%, 03/15/05 .................. 4,000,000 3,080,000
Transamerican Energy (Series B)
11.5%, 06/15/02 ................... 13,000,000 3,770,000
Trans-Resources, Inc. (Series B)
10.75%, 03/15/08 .................. 5,000,000 4,950,000
TransTexas Gas Corp. (Series D)
13.75%, 12/31/01 .................. 5,829,000 4,663,200
-----------
20,863,200
-----------
OIL--INTERNATIONAL (1.4%)
Northern Offshore ASA
10.0%, 05/15/05+ .................. 6,500,000 3,380,000
Queen Sand Resources, Inc.
12.5%, 07/01/08 ................... 7,500,000 5,400,000
-----------
8,780,000
-----------
OIL--SUPPLIES & CONSTRUCTION (0.3%)
Celestica International, Inc.
10.5%, 12/31/06 ................... 1,623,000 1,769,070
-----------
RAILROADS (1.2%)
American Commercial Lines
10.25%, 06/30/08+ ................. 7,000,000 7,105,000
-----------
TOTAL ENERGY (6.7%)
40,981,270
-----------
TECHNOLOGY
ELECTRONICS (4.2%)
CHS Electronics, Inc.
9.875%, 04/15/05 .................. 10,000,000 9,650,000
Geologistics Corp.
9.75%, 10/15/07 ................... 4,000,000 3,200,000
Interactive Systems, Inc.
Zero Coupon, 08/01/03 (a) ......... 1,500,000 588,750
Splitrock Services, Inc. (Series B)
11.75%, 07/15/08 .................. 8,000,000 6,920,000
Sullivan Graphics, Inc.
12.75%, 08/01/05 .................. 5,000,000 5,075,000
-----------
25,433,750
-----------
OFFICE EQUIPMENT SERVICES (0.6%)
NationsRent, Inc.
10.375%, 12/15/08+ ................ 3,750,000 3,712,500
-----------
TELECOMMUNICATIONS (29.1%)
Allegiance Telecom, Inc.
12.875%, 05/15/08 ................. 2,500,000 2,450,000
AMSC Acquisition Co., Inc.
(Series B)
12.25%, 04/01/08 .................. 6,900,000 4,174,500
Dobson Wireline Co.
12.25%, 06/15/08 .................. 10,000,000 9,250,000
</TABLE>
16
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
DTI Holdings, Inc. (Series B)
Zero Coupon, 03/01/08 (a) ........... $10,000,000 $2,550,000
EchoStar Communications Corp.
12.5%, 07/01/02 ..................... 7,000,000 8,050,000
Econophone, Inc.
13.5%, 07/15/07 ..................... 6,500,000 6,654,375
ESAT Telecommunications
Group PLC
11.875%, 12/01/08+ .................. 4,000,000 4,000,000
Esprit Telecom Group PLC
11.5%, 12/15/07 ..................... 7,500,000 7,650,000
Exodus Communications, Inc.
11.25%, 07/01/08 .................... 6,000,000 6,000,000
Firstworld Communications, Inc.
Zero Coupon, 04/15/08 (a) ........... 7,000,000 2,100,000
Hermes Europe Railtel BV
10.375%, 01/15/09+ .................. 6,000,000 6,060,000
Hyperion Telecommunications,
Inc. (Series B)
12.25%, 09/01/04 .................... 5,000,000 5,075,000
ICG Services, Inc.
Zero Coupon, 05/01/08 (a) ........... 10,000,000 5,000,000
ICO Global Communications,
Inc.
15.0%, 08/01/05 (d) ................. 8,000,000 5,840,000
Iridium LLC/Capital Corp.
(Series B)
14.0%, 07/15/05 ..................... 10,000,000 9,500,000
Knology Holdings, Inc.
Zero Coupon, 10/15/07 (a) ........... 11,000,000 5,417,500
Long Distance International, Inc.
12.25%, 04/15/08+ ................... 5,000,000 4,150,000
Nextel Communications, Inc.
12.0%, 11/01/08 ..................... 6,000,000 6,630,000
Northeast Optic Network, Inc.
12.75%, 08/15/08 .................... 3,000,000 2,940,000
NTL, Inc.
11.5%, 10/01/08+ .................... 8,235,000 8,996,738
Optel, Inc. (Series B)
13.0%, 02/15/05 ..................... 10,000,000 10,275,000
Orion Network Systems, Inc.
11.25%, 01/15/07 (d) ................ 4,000,000 3,920,000
Pathnet, Inc.
12.25%, 04/15/08 .................... 5,000,000 3,500,000
Price Communications Wire, Inc.
9.125%, 12/15/06+ ................... 5,000,000 5,025,000
Primus Telecommunications
11.75%, 08/01/04 (d) ................ 6,500,000 6,760,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
SBA Communications Corp.
Zero Coupon, 03/01/08 (a) ........... $ 9,000,000 $5,175,000
Startec Global Communications,
Inc.
12.0%, 05/15/08 (d) ................. 5,000,000 4,300,000
US Xchange LLC
15.0%, 07/01/08 ..................... 6,500,000 6,662,500
Versatel Telecommunications:
13.25%, 05/15/08 .................... 5,800,000 5,800,000
13.25%, 05/15/08 (d) ................ 4,200,000 4,263,000
WinStar Equipment Corp.
12.5%, 03/15/04 ..................... 10,000,000 10,050,000
------------
178,218,613
------------
TOTAL TECHNOLOGY (33.9%) ............ 207,364,863
------------
DIVERSIFIED
MISCELLANEOUS (2.3%)
Eagle Geophysical, Inc.
(Series B)
10.75%, 07/15/08 .................... 3,000,000 2,490,000
Elgin National Industries
(Series B)
11.0%, 11/01/07 ..................... 3,000,000 3,015,000
Samsonite Corp.
10.75%, 06/15/08 .................... 10,000,000 8,600,000
------------
TOTAL DIVERSIFIED (2.3%) ............ 14,105,000
------------
TOTAL LONG-TERM DEBT SECURITIES (90.6%)
(Amortized Cost $617,994,744) 554,618,675
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.:
4.7%, due 01/04/99 .................. 29,200,000 29,188,563
5.1%, due 01/14/99 .................. 10,000,000 9,981,656
------------
TOTAL U.S. GOVERNMENT AGENCIES (6.4%) 39,170,219
------------
TOTAL SHORT-TERM DEBT SECURITIES (6.4%)
(Amortized Cost $39,170,219)......... 39,170,219
------------
TOTAL INVESTMENTS (97.8%)
(Cost/Amortized Cost
$663,283,133) ....................... 598,993,487
OTHER ASSETS
LESS LIABILITIES (2.2%) ............. 13,356,932
------------
NET ASSETS (100.0%) ................... $612,350,419
==============
</TABLE>
- ----------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $161,756,054
or 26.4% of net assets.
(a) Debt security initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(b) Paid-in-kind preferred, quarterly stock payments.
(c) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at December 31, 1998.
(d) Consists of more than one class of securities traded together as a unit;
generally bonds with attached stocks or warrants.
See Notes to Financial Statements.
17
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (0.6%)
Dow Chemical Co. ................... 65,000 $ 5,910,938
-----------
CHEMICALS--SPECIALTY (0.3%)
Praxair, Inc. ...................... 77,000 2,714,250
-----------
TOTAL BASIC MATERIALS (0.9%) ..... 8,625,188
-----------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (1.5%)
Belo (A.H.) Corp. (Series A) ....... 396,700 7,909,206
Donnelley (R.R.) & Sons Co. ........ 155,000 6,790,938
-----------
14,700,144
-----------
PROFESSIONAL SERVICES (0.1%)
Modis Professional Services, Inc.* 73,127 1,060,341
-----------
TOTAL BUSINESS SERVICES (1.6%) 15,760,485
-----------
CAPITAL GOODS (4.8%)
MACHINERY
AlliedSignal, Inc. ................. 302,000 13,382,375
Case Corp. ......................... 170,000 3,708,125
United Technologies Corp. .......... 285,700 31,069,875
-----------
TOTAL CAPITAL GOODS (4.8%) ....... 48,160,375
-----------
CONSUMER CYCLICALS
AIRLINES (0.6%)
Continental Airlines, Inc.
(Class B)* ....................... 4 131
Delta Air Lines, Inc. .............. 78,400 4,076,800
Northwest Airlines Corp.
(Class A)* ....................... 70,900 1,812,381
-----------
5,889,312
-----------
APPAREL, TEXTILE (1.0%)
Nautica Enterprises, Inc.* ......... 350,000 5,250,000
Tommy Hilfiger Corp.* .............. 77,000 4,620,000
-----------
9,870,000
-----------
LEISURE RELATED (3.2%)
Carnival Corp. (Class A) ........... 235,000 11,280,000
Harley-Davidson, Inc. .............. 285,000 13,501,875
Mirage Resorts, Inc.* .............. 115,000 1,717,812
Royal Caribbean Cruises Ltd. ....... 140,000 5,180,000
-----------
31,679,687
-----------
RETAIL--GENERAL (2.2%)
Dayton Hudson Corp. ................ 336,000 18,228,000
Federated Department Stores,
Inc.* ............................ 94,600 4,121,013
-----------
22,349,013
-----------
TOTAL CONSUMER CYCLICALS (7.0%) 69,788,012
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.2%)
Coca-Cola Co. ...................... 120,000 8,025,000
Coca-Cola Enterprises, Inc. ........ 125,000 4,468,750
-----------
12,493,750
-----------
DRUGS (5.1%)
Bristol-Myers Squibb Co. ........... 329,000 44,024,312
Genzyme Corp. (General
Division)* ....................... 140,000 6,965,000
Genzyme Corp. (Molecular
Oncology)* ....................... 15,134 49,186
-----------
51,038,498
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
FOODS (2.0%)
Campbell Soup Co. .................. 266,600 $14,663,000
Tyson Foods, Inc. (Class A) ........ 245,000 5,206,250
-----------
19,869,250
-----------
HOSPITAL SUPPLIES & SERVICES (3.6%)
Columbia/HCA Healthcare Corp. 305,000 7,548,750
PacifiCare Health Systems, Inc.
(Class B)* ....................... 97,400 7,743,300
Tenet Healthcare Corp.* ............ 785,000 20,606,250
-----------
35,898,300
-----------
SOAPS & TOILETRIES (2.1%)
Avon Products, Inc. ................ 202,000 8,938,500
Colgate Palmolive Co. .............. 57,000 5,293,875
Gillette Co. ....................... 135,000 6,522,188
-----------
20,754,563
-----------
TOBACCO (3.2%)
Philip Morris Cos., Inc. ........... 294,500 15,755,750
RJR Nabisco Holdings Corp. ......... 553,900 16,443,906
-----------
32,199,656
-----------
TOTAL CONSUMER NONCYCLICALS (17.2%) 172,254,017
-----------
CREDIT SENSITIVE
BANKS (8.7%)
Banc One Corp. ..................... 125,000 6,382,812
BankAmerica Corp. .................. 557,000 33,489,625
Chase Manhattan Corp. .............. 414,000 28,177,875
Citigroup, Inc. .................... 379,000 18,760,500
-----------
86,810,812
-----------
FINANCIAL SERVICES (5.9%)
Associates First Capital Corp.
(Class A) ........................ 176,000 7,458,000
Household International, Inc. ...... 1,044,000 41,368,500
MBNA Corp. ......................... 186,750 4,657,078
PMI Group, Inc. .................... 99,600 4,917,750
-----------
58,401,328
-----------
INSURANCE (0.6%)
PennCorp Financial Group, Inc. ..... 93,000 93,000
Travelers Property Casualty
Corp. (Class A) .................. 205,000 6,355,000
-----------
6,448,000
-----------
UTILITY--ELECTRIC (3.6%)
AES Corp.* ......................... 100,100 4,742,238
CMS Energy Corp. ................... 123,000 5,957,813
Consolidated Edison Inc. ........... 157,300 8,317,237
FPL Group, Inc. .................... 130,000 8,011,250
GPU, Inc. .......................... 86,000 3,800,125
Pinnacle West Capital Corp. ........ 128,400 5,440,950
-----------
36,269,613
-----------
UTILITY--TELEPHONE (2.4%)
AT&T Corp. ......................... 319,117 24,013,554
-----------
TOTAL CREDIT SENSITIVE (21.2%) 211,943,307
-----------
ENERGY
OIL--DOMESTIC (3.9%)
Apache Corp. ....................... 388,000 9,821,250
Murphy Oil Corp. ................... 171,000 7,053,750
Union Pacific Resources Group,
Inc. ............................. 183,800 1,665,687
USX-Marathon Group, Inc. ........... 696,000 20,967,000
-----------
39,507,687
-----------
</TABLE>
18
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OIL--SUPPLIES & CONSTRUCTION (3.3%)
BJ Services Co.* ....................................................... 280,000 $ 4,375,000
Halliburton Co. ........................................................ 353,000 10,457,625
Noble Drilling Corp.* .................................................. 812,000 10,505,250
Transocean Offshore, Inc. .............................................. 272,800 7,314,450
-----------
32,652,325
-----------
RAILROADS (0.1%)
Canadian Pacific Ltd. .................................................. 39,000 736,125
-----------
TOTAL ENERGY (7.3%) .................................................. 72,896,137
-----------
TECHNOLOGY
ELECTRONICS (7.0%)
Altera Corp.* .......................................................... 244,900 14,908,288
Atmel Corp.* ........................................................... 404,500 6,193,906
Intel Corp. ............................................................ 70,000 8,299,375
Sanmina Corp.* ......................................................... 263,776 16,486,000
Solectron Corp.* ....................................................... 265,200 24,647,025
-----------
70,534,594
-----------
OFFICE EQUIPMENT (0.5%)
Compaq Computer Corp. .................................................. 116,500 4,885,719
-----------
OFFICE EQUIPMENT SERVICES (4.6%)
Electronic Data Sysytems Corp. ......................................... 397,200 19,959,300
First Data Corp. ....................................................... 467,000 14,798,062
Oracle Corp.* .......................................................... 258,000 11,126,250
-----------
45,883,612
-----------
TELECOMMUNICATIONS (6.9%)
AirTouch Communications, Inc.* 130,000 9,376,250
Ascend Communications, Inc.* ........................................... 160,000 10,520,000
Fore Systems, Inc.* .................................................... 355,000 6,500,938
MCI WorldCom, Inc.* .................................................... 417,382 29,947,158
MediaOne Group, Inc. ................................................... 120,000 7,980,000
Tellabs, Inc.* ......................................................... 64,000 4,388,000
WinStar Communications, Inc.* .......................................... 4,751 185,289
-----------
68,897,635
-----------
TOTAL TECHNOLOGY (19.0%) ............................................. 190,201,560
-----------
DIVERSIFIED
MISCELLANEOUS (3.8%)
Honeywell, Inc. ........................................................ 96,000 7,230,000
Tyco International Ltd. ................................................ 258,200 19,477,963
U.S. Industries, Inc. .................................................. 367,200 6,839,100
Viad Corp. ............................................................. 130,000 3,948,750
-----------
TOTAL DIVERSIFIED (3.8%) ............................................. 37,495,813
-----------
TOTAL COMMON STOCKS (82.8%)
(Cost $709,274,249)................................................... 827,124,894
-----------
PREFERRED STOCKS:
BUSINESS SERVICES (0.3%)
TRUCKING, SHIPPING
CNF Trust I
5.0% Conv. Series A ................................................... 50,000 2,843,750
-----------
CAPITAL GOODS (0.2%)
AEROSPACE
Loral Space & Communications
6.0% Conv. ........................................................... 30,700 1,617,506
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
CONSUMER CYCLICALS
AIRLINES (0.0%)
Continental Airlines Finance Trust
8.5% Conv. ........................................................... 6,500 $ 450,125
-----------
LEISURE RELATED (0.8%)
Royal Caribbean Cruises Ltd.
7.25% Series A ........................................................ 66,900 7,906,744
-----------
TOTAL CONSUMER CYCLICALS (0.8%) 8,356,869
-----------
CONSUMER NONCYCLICALS (0.1%)
DRUGS
Alkermes, Inc.
6.5% ................................................................. 12,100 535,425
-----------
CREDIT SENSITIVE (0.4%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv. Series A ................................................. 63,900 4,441,050
-----------
ENERGY (1.0%)
RAILROADS
Union Pacific Capital Trust
6.25% Conv.+ ......................................................... 206,000 9,476,000
-----------
TECHNOLOGY
ELECTRONICS (0.3%)
L&H Capital Trust I
4.75% Conv.+ ......................................................... 52,300 1,653,987
Times Mirror Co.
4.25% Conv. .......................................................... 21,800 1,215,350
-----------
2,869,337
-----------
TELECOMMUNICATIONS (1.6%)
AirTouch Communications, Inc.
4.25% Conv., Series C ................................................ 44,800 4,614,400
ICG Communications, Inc.
6.75% Conv.+ ......................................................... 25,600 1,363,200
Intermedia Communications,
Inc.:
7.0% Conv.+ .......................................................... 20,500 524,031
7.0% Conv. Series D .................................................. 52,200 1,334,363
IXC Communications, Inc.:
6.75% Conv. .......................................................... 7,200 238,500
6.75% Conv.+ ......................................................... 47,200 1,563,500
Nextel Strypes Trust
7.25% Conv. .......................................................... 131,700 2,699,850
WinStar Communications, Inc.
7.0% Conv. ........................................................... 84,200 3,999,500
-----------
16,337,344
-----------
TOTAL TECHNOLOGY (1.9%) .............................................. 19,206,681
-----------
TOTAL PREFERRED STOCKS (4.7%)
(Cost $49,972,763) ................................................... 46,477,281
-----------
PRINCIPAL
AMOUNT
-------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.8%)
Clear Channel Communications, Inc.
2.625% Conv., 04/01/03 ............................................... $1,315,000 1,402,119
Mail-Well, Inc.
5.0% Conv., 11/01/02 ................................................. 1,215,000 1,093,500
</TABLE>
19
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
P-Com, Inc.:
4.25% Conv., 11/01/02+ ............ $ 1,850,000 $ 869,500
4.25% Conv., 11/01/02 ............. 1,385,000 650,950
Tele-Communications, Inc.
4.5%, 02/15/06 .................... 3,530,000 3,794,750
------------
7,810,819
------------
PROFESSIONAL SERVICES (0.2%)
Personnel Group of America:
5.75% Conv., 07/01/04+ ............ 375,000 434,062
5.75% Conv., 07/01/04 ............. 1,350,000 1,562,625
------------
1,996,687
------------
TOTAL BUSINESS SERVICES (1.0%) 9,807,506
------------
CAPITAL GOODS
AEROSPACE (0.3%)
Orbital Sciences Corp.:
5.0% Conv., 10/01/02+ .............. 945,000 1,597,050
5.0% Conv., 10/01/02 ............... 550,000 929,500
------------
TOTAL CAPITAL GOODS (0.3%) ........ 2,526,550
------------
CONSUMER CYCLICALS (0.2%)
RETAIL--GENERAL
Office Depot, Inc.
Zero Coupon, 11/01/08 ............. 2,825,000 2,443,625
------------
CONSUMER NONCYCLICALS
DRUGS (1.4%)
MedImmune, Inc.:
7.0% Conv., 07/01/03 .............. 1,860,000 9,402,300
7.0% Conv. Sub. Note, 07/01/03+..... 245,000 1,238,475
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+ ............. 580,000 793,150
4.25% Conv., 05/31/00 .............. 1,530,000 2,092,275
------------
13,526,200
------------
HOSPITAL SUPPLIES & SERVICES (0.7%)
Alternative Living Services, Inc.
5.25% Conv., 12/15/02 .............. 1,935,000 2,467,125
FPA Medical Management, Inc.
6.5% Conv., 12/15/01(a) ............ 1,770,000 8,850
RES-Care, Inc.:
6.0% Conv., 12/01/04+ .............. 1,420,000 1,969,362
6.0% Conv., 12/01/04 ............... 660,000 915,338
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ............... 1,100,000 1,641,750
------------
7,002,425
------------
TOTAL CONSUMER NONCYCLICALS (2.1%) 20,528,625
------------
TECHNOLOGY
ELECTRONICS (4.8%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ............. 4,855,000 4,806,450
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
America Online, Inc.
4.0% Conv., 11/15/02 .............. $ 1,445,000 $8,888,556
EMC Corp.
3.25% Conv., 03/15/02+ ............. 925,000 3,484,938
HNC Software, Inc.
4.75% Conv., 03/01/03 .............. 1,845,000 2,029,500
Hutchinson Technology, Inc.
6.0%, 03/15/05 ..................... 2,740,000 3,818,875
Level One Communications, Inc.:
4.0% Conv., 09/01/04+ .............. 2,180,000 3,177,350
Micron Technology, Inc.
7.0% Conv., 07/01/04 ............... 1,395,000 1,492,650
Network Associates, Inc.:
Zero Coupon, 02/13/18+ ............ 4,420,000 2,712,775
Zero Coupon, 02/13/18 ............. 190,000 116,613
Photronics, Inc.
6.0% Conv., 06/01/04 ............... 3,265,000 3,469,063
SCI Systems, Inc.
5.0% Conv., 05/01/06+ .............. 2,835,000 6,743,756
Solectron Corp.
6.0% Conv., 03/01/06+ ............. 2,805,000 7,720,762
------------
48,461,288
------------
TELECOMMUNICATIONS (1.1%)
Comverse Technology, Inc.:
5.75% Conv., 10/01/06 .............. 2,425,000 3,931,531
5.75% Conv. Sub. Note,
10/01/06+ ...................... 1,200,000 1,945,500
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 ............. 4,420,000 4,994,600
------------
10,871,631
------------
TOTAL TECHNOLOGY (5.9%) ........... 59,332,919
------------
TOTAL LONG-TERM DEBT SECURITIES (9.5%)
(Amortized Cost $66,936,721) ....... 94,639,225
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.:
4.7%, due 01/04/99 ................. 17,200,000 17,193,263
5.1%, due 01/14/99 ................. 10,000,000 9,981,656
------------
TOTAL U.S. GOVERNMENT AGENCIES (2.7%)
27,174,919
------------
TOTAL SHORT-TERM DEBT SECURITIES (2.7%)
(Amortized Cost $27,174,919) ....... 27,174,919
------------
TOTAL INVESTMENTS (99.7%)
(Cost/Amortized Cost
$853,358,652) ..................... 995,416,319
OTHER ASSETS
LESS LIABILITIES (0.3%) ........... 2,885,741
------------
NET ASSETS (100.0%) ................. $998,302,060
==============
</TABLE>
- ----------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $47,267,398 or
4.7% of net assets.
(a) On July 15, 1998, this security defaulted on its interest payment.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
20
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICALS (1.5%)
Air Products & Chemicals, Inc. ....... 38,000 $1,520,000
Avery Dennison Corp. ................. 19,100 860,694
Dow Chemical Co. ..................... 37,500 3,410,156
Dupont (E.I.) de Nemours & Co. 189,100 10,034,119
Eastman Chemical Co. ................. 13,100 586,225
Ecolab, Inc. ......................... 24,400 882,975
FMC Corp.* ........................... 13,500 756,000
Goodrich (B.F.) Co. .................. 22,900 821,538
Hercules, Inc. ....................... 26,600 728,175
Monsanto Co. ......................... 98,700 4,688,250
Rohm & Haas Co. ...................... 28,500 858,562
Union Carbide Corp. .................. 22,200 943,500
----------
26,090,194
----------
CHEMICALS--SPECIALTY (0.4%)
Morton International, Inc. ........... 29,700 727,650
Praxair, Inc. ........................ 24,400 860,100
Raychem Corp. ........................ 23,300 752,881
Sigma-Aldrich Corp. .................. 25,100 737,313
Southern Co. ......................... 116,100 3,374,156
----------
6,452,100
----------
METALS & MINING (0.5%)
Alcan Aluminum Ltd. .................. 6,600 178,612
Alcan Aluminum Ltd. (Canada) ......... 32,300 872,121
Aluminum Co. of America .............. 31,900 2,378,544
Barrick Gold Corp. ................... 73,300 1,429,350
Engelhard Corp. ...................... 32,900 641,550
Engelhard Corp.--Rights* ............. 32,900 0
Newmont Mining Corp. ................. 36,907 666,633
Phelps Dodge Corp. ................... 14,600 742,775
Placer Dome, Inc. .................... 65,800 756,700
Reynolds Metals Co. .................. 13,400 706,012
----------
8,372,297
----------
PAPER (0.9%)
Champion International Corp. ......... 22,000 891,000
Fort James Corp. ..................... 36,300 1,452,000
Georgia Pacific Group ................ 14,100 825,731
International Paper Co. .............. 48,825 2,187,970
Kimberly Clark Corp. ................. 89,844 4,896,498
Mead Corp. ........................... 27,200 797,300
Temple Inland, Inc. .................. 14,000 830,375
Union Camp Corp. ..................... 12,800 864,000
Westvaco Corp. ....................... 29,000 777,563
Willamette Industries, Inc. .......... 25,300 847,550
----------
14,369,987
----------
STEEL (0.1%)
Allegheny Teledyne, Inc. ............. 51,000 1,042,313
Nucor Corp. .......................... 23,100 999,075
----------
2,041,388
----------
TOTAL BASIC MATERIALS (3.4%) ........ 57,325,966
----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.4%)
Browning-Ferris Industries, Inc. ..... 28,200 801,938
Johnson Controls, Inc. ............... 13,700 808,300
Thermo Electron Corp.* ............... 49,700 841,794
Waste Management, Inc. ............... 94,884 4,423,966
----------
6,875,998
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
PRINTING, PUBLISHING &
BROADCASTING (2.9%)
CBS Corp. ............................ 116,900 $3,828,475
Clear Channel Communications,
Inc.* .............................. 41,400 2,256,300
Comcast Corp. (Class A) SPL .......... 60,500 3,550,594
Deluxe Corp. ......................... 21,500 786,094
Donnelley (R.R.) & Sons Co. .......... 23,200 1,016,450
Dow Jones & Co., Inc. ................ 17,000 818,125
Dun & Bradstreet Corp. ............... 28,300 893,219
Gannett Co. .......................... 47,500 3,063,750
Knight-Ridder, Inc. .................. 15,700 802,663
McGraw-Hill Companies, Inc. .......... 16,300 1,660,562
MediaOne Group, Inc.* ................ 101,800 4,784,600
New York Times Co. (Class A) ......... 30,600 1,061,437
Tele-Communications, Inc.
(Class A)* ......................... 87,428 4,835,861
Time Warner, Inc. .................... 200,200 12,424,912
Times Mirror Co. (Class A) ........... 14,100 789,600
Tribune Co. .......................... 20,300 1,339,800
Viacom, Inc. (Class B)* .............. 59,800 4,425,200
----------
48,337,642
----------
PROFESSIONAL SERVICES (0.3%)
Block (H&R), Inc. .................... 19,000 855,000
Interpublic Group Cos., Inc. ......... 22,200 1,770,450
Omnicom Group, Inc. .................. 27,700 1,606,600
Service Corp. International .......... 43,600 1,659,553
----------
5,891,603
----------
TRUCKING, SHIPPING (0.2%)
FDX Corp.* ........................... 23,200 2,064,800
Laidlaw, Inc. ........................ 71,100 715,444
----------
2,780,244
----------
TOTAL BUSINESS SERVICES (3.8%)....... 63,885,487
----------
CAPITAL GOODS
AEROSPACE (0.9%)
Boeing Co. ........................... 164,774 5,375,752
General Dynamics Corp. ............... 20,300 1,190,087
Lockheed Martin Corp. ................ 31,404 2,661,489
Northrop Grumman Corp. ............... 11,000 804,375
Northrop Grumman Corp.--
Rights (expire 10/31/08)* .......... 9,700 0
Raytheon Co. (Class B) ............... 54,800 2,918,100
Rockwell International Corp. ......... 30,800 1,495,725
TRW, Inc. ............................ 19,200 1,078,800
----------
15,524,328
----------
BUILDING & CONSTRUCTION (0.0%)
Centex Corp. ......................... 16,800 757,050
----------
BUILDING MATERIALS & FOREST
PRODUCTS (0.4%)
Armstrong World Industries, Inc. 11,500 693,594
Masco Corp. .......................... 54,100 1,555,375
PPG Industries, Inc. ................. 28,300 1,648,475
Sherwin Williams Co. ................. 24,800 728,500
Weyerhaeuser Co. ..................... 33,400 1,697,137
----------
6,323,081
----------
ELECTRICAL EQUIPMENT (3.7%)
Emerson Electric Co. ................. 72,600 4,392,317
General Electric Co. ................. 537,700 54,879,006
</TABLE>
21
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
General Instrument Corp.* ......... 27,900 $ 946,856
Grainger (W.W.), Inc. ............. 19,100 795,038
Thomas & Betts Corp. .............. 16,500 714,656
-----------
61,727,873
-----------
MACHINERY (1.3%)
AlliedSignal, Inc. ................ 93,000 4,121,062
Case Corp. ........................ 36,400 793,975
Caterpillar, Inc. ................. 59,000 2,714,000
Cooper Industries, Inc. ........... 18,600 886,988
Cummins Engine Company, Inc. ...... 19,700 699,350
Deere & Co. ....................... 38,400 1,272,000
Dover Corp. ....................... 37,100 1,358,788
Fluor Corp. ....................... 17,500 744,844
Illinois Tool Works, Inc. ......... 40,800 2,366,400
Ingersoll Rand Co. ................ 25,450 1,194,559
Pall Corp. ........................ 32,100 812,531
Parker-Hannifin Corp. ............. 24,950 817,113
United Technologies Corp. ......... 37,200 4,045,500
-----------
21,827,110
-----------
TOTAL CAPITAL GOODS (6.3%) ....... 106,159,442
-----------
CONSUMER CYCLICALS
AIRLINES (0.3%)
AMR Corp.* ........................ 30,100 1,787,187
Delta Air Lines, Inc. ............. 23,600 1,227,200
Southwest Airlines Co. ............ 54,525 1,223,405
US Airways Group, Inc.* ........... 13,300 691,600
-----------
4,929,392
-----------
APPAREL, TEXTILE (0.2%)
Liz Claiborne, Inc. ............... 24,500 773,281
Nike, Inc. (Class B) .............. 50,500 2,048,407
VF Corp. .......................... 18,400 862,500
-----------
3,684,188
-----------
AUTO RELATED (0.3%)
Dana Corp. ........................ 26,723 1,092,303
Danaher Corp. ..................... 24,500 1,330,656
Eaton Corp. ....................... 11,200 791,700
Genuine Parts Co. ................. 29,200 976,375
Goodyear Tire & Rubber Co. ........ 29,400 1,482,862
-----------
5,673,896
-----------
AUTOS & TRUCKS (1.2%)
AutoZone, Inc.* ................... 27,000 889,313
Ford Motor Co. .................... 199,200 11,690,550
General Motors Corp. .............. 107,600 7,700,125
Paccar, Inc. ...................... 19,800 814,275
-----------
21,094,263
-----------
FOOD SERVICES, LODGING (0.7%)
Harrah's Entertainment, Inc.* ..... 45,900 720,056
Marriott International, Inc.
(Class A) ....................... 39,750 1,152,750
McDonald's Corp. .................. 116,200 8,903,825
Tricon Global Restaurants, Inc.* 25,320 1,269,165
-----------
12,045,796
-----------
HOUSEHOLD FURNITURE, APPLIANCES (0.3%)
Black & Decker Corp. .............. 14,500 812,906
Maytag Corp. ...................... 14,500 902,625
Newell Company .................... 26,100 1,076,625
Rubbermaid, Inc. .................. 27,300 858,244
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Stanley Works ..................... 22,300 $ 618,825
Whirlpool Corp. ................... 13,600 753,100
-----------
5,022,325
-----------
LEISURE RELATED (1.3%)
American Greetings Corp.
(Class A) ....................... 19,200 788,400
Carnival Corp. (Class A) .......... 101,100 4,852,800
Cendant Corp.* .................... 139,650 2,662,078
Disney (Walt) Co. ................. 338,100 10,143,000
Hasbro, Inc. ...................... 20,800 751,400
Hilton Hotels Corp. ............... 36,300 694,238
Mattel, Inc. ...................... 49,643 1,132,481
Mirage Resorts, Inc.* ............. 54,000 806,625
-----------
21,831,022
-----------
PHOTO & OPTICAL (0.3%)
Allergan, Inc. .................... 13,400 867,650
Eastman Kodak Co. ................. 55,800 4,017,600
-----------
4,885,250
-----------
RETAIL--GENERAL (5.5%)
Circuit City Stores--Circuit City
Group ........................... 19,700 983,769
Costco Cos., Inc.* ................ 35,300 2,548,219
CVS Corp. ......................... 64,800 3,564,000
Dayton Hudson Corp. ............... 73,100 3,965,675
Dillard's, Inc. (Class A) ......... 28,500 808,688
Dollar General Corp. .............. 30,750 726,469
Federated Department Stores,
Inc.* ........................... 34,700 1,511,619
Fred Meyer, Inc.* ................. 25,000 1,506,250
Gap, Inc. ......................... 98,100 5,518,125
Harcourt General, Inc. ............ 14,900 792,494
Home Depot, Inc. .................. 244,700 14,972,581
K-Mart Corp.* ..................... 81,000 1,240,312
Kohl's Corp.* ..................... 26,300 1,615,806
Limited, Inc. ..................... 37,500 1,092,188
Lowe's Cos., Inc. ................. 58,600 2,999,587
May Department Stores Co. ......... 38,500 2,324,437
Nordstrom, Inc. ................... 24,400 846,375
Penney (J.C.), Inc. ............... 41,200 1,931,250
Sears, Roebuck & Co. .............. 65,300 2,775,250
Staples, Inc.* .................... 52,700 2,302,331
Tandy Corp. ....................... 20,500 844,344
TJX Cos., Inc. .................... 50,900 1,476,100
Toys R Us, Inc.* .................. 44,800 756,000
Wal-Mart Stores, Inc. ............. 371,800 30,278,462
Walgreen Co. ...................... 82,800 4,848,975
-----------
92,229,306
-----------
TOTAL CONSUMER CYCLICALS (10.1%) 171,395,438
-----------
CONSUMER NONCYCLICALS
BEVERAGES (2.9%)
Anheuser Busch Companies, Inc. 81,600 5,355,000
Brown Forman Corp. (Class B) ...... 11,200 847,700
Coca-Cola Co. ..................... 410,300 27,438,813
Coca-Cola Enterprises, Inc. ....... 67,300 2,405,975
Pepsico, Inc. ..................... 245,100 10,033,781
Seagram Ltd. ...................... 68,100 2,587,800
-----------
48,669,069
-----------
</TABLE>
22
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
CONTAINERS (0.1%)
Crown Cork & Seal Co., Inc. ...... 21,800 $ 671,713
Owens-Illinois, Inc.* ............ 26,200 802,375
Sealed Air Corp.* ................ 15,910 812,404
-----------
2,286,492
-----------
DRUGS (8.3%)
ALZA Corp.* ...................... 14,600 762,850
American Home Products Corp. ..... 219,100 12,338,069
Amgen, Inc.* ..................... 41,500 4,339,344
Bristol-Myers Squibb Co. ......... 165,600 22,159,350
Lilly (Eli) & Co. ................ 183,400 16,299,675
Merck & Co., Inc. ................ 198,300 29,286,431
Pfizer, Inc. ..................... 216,600 27,169,762
Pharmacia & Upjohn, Inc. ......... 83,990 4,755,934
Schering Plough Corp. ............ 244,500 13,508,625
Warner-Lambert Co. ............... 135,100 10,157,831
-----------
140,777,871
-----------
FOODS (1.9%)
Archer Daniels Midland Co. ....... 97,370 1,673,547
Bestfoods ........................ 47,800 2,545,350
Campbell Soup Co. ................ 74,700 4,108,500
ConAgra, Inc. .................... 80,600 2,538,900
General Mills, Inc. .............. 25,600 1,990,400
Heinz (H.J.) Co. ................. 60,250 3,411,656
Hershey Foods Corp. .............. 23,300 1,448,969
Kellogg Co. ...................... 67,200 2,293,200
Pioneer Hi Bred International,
Inc. ........................... 39,900 1,077,300
Quaker Oats Co. .................. 22,500 1,338,750
Ralston-Ralston Purina Group ..... 50,700 1,641,413
Rite Aid Corp. ................... 42,100 2,086,581
Sara Lee Corp. ................... 155,400 4,380,337
Wrigley (Wm.), Jr. Co. ........... 19,200 1,719,600
-----------
32,254,503
-----------
HOSPITAL SUPPLIES & SERVICES (3.6%)
Abbott Laboratories .............. 256,400 12,563,600
Baxter International, Inc. ....... 46,400 2,984,100
Becton, Dickinson & Co. .......... 40,900 1,745,919
Biomet, Inc. ..................... 22,800 917,700
Boston Scientific Corp.* ......... 61,400 1,646,287
Cardinal Health, Inc. ............ 33,250 2,522,844
Columbia/HCA Healthcare Corp. 107,500 2,660,625
Guidant Corp. .................... 24,900 2,745,225
HCR Manor Care, Inc.* ............ 23,800 699,125
Healthsouth Corp.* ............... 66,400 1,025,050
Humana, Inc.* .................... 41,000 730,313
IMS Health, Inc. ................. 27,100 2,044,356
Johnson and Johnson .............. 224,000 18,788,000
Medtronic, Inc. .................. 78,200 5,806,350
Saint Jude Medical, Inc.* ........ 26,749 740,613
Tenet Healthcare Corp.* .......... 51,100 1,341,375
United HealthCare Corp. .......... 31,600 1,360,775
-----------
60,322,257
-----------
RETAIL--FOOD (0.9%)
Albertsons, Inc. ................. 40,900 2,604,819
American Stores Co. .............. 44,700 1,651,106
Kroger Co.* ...................... 41,700 2,522,850
Safeway, Inc.* ................... 81,000 4,935,937
Supervalu, Inc. .................. 30,200 845,600
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Sysco Corp. ...................... 54,800 $ 1,503,575
Winn Dixie Stores, Inc. .......... 24,700 1,108,413
-----------
15,172,300
-----------
SOAPS & TOILETRIES (2.8%)
Avon Products, Inc. .............. 41,800 1,849,650
Clorox Co. ....................... 17,000 1,985,813
Colgate Palmolive Co. ............ 48,300 4,485,863
Gillette Co. ..................... 187,700 9,068,256
International Flavors &
Fragrances, Inc. ............... 18,700 826,306
Procter & Gamble Co. ............. 224,100 20,463,131
Unilever N.V. .................... 107,000 8,874,312
-----------
47,553,331
-----------
TOBACCO (1.6%)
Fortune Brands, Inc. ............. 28,300 894,988
Loews Corp. ...................... 18,500 1,817,625
Philip Morris Cos., Inc. ......... 400,700 21,437,450
RJR Nabisco Holdings Corp. ....... 51,500 1,528,906
UST, Inc. ........................ 30,400 1,060,200
-----------
26,739,169
-----------
TOTAL CONSUMER NONCYCLICALS (22.1%) 373,774,992
-----------
CREDIT SENSITIVE
BANKS (7.8%)
Banc One Corp. ................... 194,937 9,953,971
Bank of New York Co., Inc. ....... 124,400 5,007,100
BankAmerica Corp. ................ 289,189 17,387,489
BankBoston Corp. ................. 47,800 1,861,212
Bankers Trust New York Corp. ..... 15,500 1,324,281
Chase Manhattan Corp. ............ 142,580 9,704,351
Citigroup, Inc. .................. 380,207 18,820,246
Comerica, Inc. ................... 25,700 1,752,419
Fifth Third Bancorp .............. 44,550 3,176,972
First Union Corp. ................ 161,256 9,806,380
Firstar Corp. .................... 31,900 2,974,704
Golden West Financial Corp. ...... 9,000 825,188
Huntington Bancshares, Inc. ...... 34,350 1,032,647
KeyCorp. ......................... 72,600 2,323,200
Mellon Bank Corp. ................ 43,400 2,983,750
Mercantile Bancorp., Inc. ........ 25,100 1,157,738
Morgan (J.P.) & Co., Inc. ........ 29,400 3,088,837
National City Corp. .............. 54,900 3,980,250
Northern Trust Corp. ............. 18,100 1,580,356
PNC Bank Corp. ................... 50,200 2,717,075
Regions Financial Corp. .......... 35,300 1,423,031
Republic New York Corp. .......... 17,800 811,013
State Street Corp. ............... 26,200 1,822,538
Summit Bancorp. .................. 28,700 1,253,831
Suntrust Banks, Inc. ............. 34,800 2,662,200
U.S. Bancorp. .................... 123,678 4,390,569
Union Planters Corp. ............. 20,700 937,969
Wachovia Corp. ................... 33,900 2,964,131
Washington Mutual, Inc. .......... 97,842 3,736,341
Wells Fargo Co. .................. 269,100 10,747,181
-----------
132,206,970
-----------
FINANCIAL SERVICES (2.9%)
American Express Co. ............. 75,900 7,760,775
Associates First Capital Corp.
(Class A) ...................... 114,200 4,839,225
Bear Stearns Co., Inc. ........... 20,999 784,838
</TABLE>
23
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Capital One Financial Corp. ......... 10,900 $ 1,253,500
Countrywide Credit Industries,
Inc. .............................. 18,300 918,431
Equifax, Inc. ....................... 23,600 806,825
Fleet Financial Group, Inc. ......... 94,458 4,221,092
Franklin Resources, Inc. ............ 41,700 1,334,400
Household International, Inc. ....... 79,946 3,167,860
Lehman Brothers Holdings, Inc. ...... 19,200 846,000
MBIA, Inc. .......................... 16,400 1,075,225
MBNA Corp. .......................... 122,030 3,043,123
Merrill Lynch & Co., Inc. ........... 57,400 3,831,450
Morgan Stanley Dean Witter &
Co. ............................... 97,405 6,915,755
Schwab (Charles) Corp. .............. 65,025 3,653,592
SLM Holding Corp. ................... 26,600 1,276,800
Synovus Finacial Corp. .............. 43,450 1,059,094
Transamerica Corp. .................. 10,300 1,189,650
-----------
47,977,635
-----------
INSURANCE (3.3%)
Aetna, Inc. ......................... 23,843 1,874,656
Allstate Corp. ...................... 137,676 5,317,735
American General Corp. .............. 42,100 3,283,800
American International Group,
Inc. .............................. 174,487 16,859,806
Aon Corp. ........................... 27,850 1,542,194
Chubb Corp. ......................... 26,900 1,745,137
CIGNA Corp. ......................... 35,300 2,729,131
Cincinnati Financial Corp. .......... 27,100 992,538
Conseco, Inc. ....................... 50,746 1,550,925
Hartford Financial Services
Group, Inc. ....................... 38,500 2,112,687
Jefferson-Pilot Corp. ............... 17,450 1,308,750
Lincoln National Corp. Industries 16,100 1,317,181
Marsh & McLennan Cos., Inc. ......... 42,500 2,483,594
MGIC Investment Corp. ............... 21,200 844,025
Progressive Corp. ................... 11,800 1,998,625
Provident Companies, Inc. ........... 24,000 996,000
Providian Financial Corp. ........... 23,100 1,732,500
Safeco Corp. ........................ 23,300 1,000,444
Saint Paul Cos., Inc. ............... 38,364 1,333,149
SunAmerica, Inc. .................... 34,400 2,790,700
Torchmark Corp. ..................... 23,100 815,719
UNUM Corp. .......................... 22,800 1,330,950
-----------
55,960,246
-----------
MORTGAGE RELATED (1.2%)
Fannie Mae .......................... 172,400 12,757,600
Freddie Mac ......................... 112,900 7,274,994
-----------
20,032,594
-----------
UTILITY--ELECTRIC (2.2%)
AES Corp.* .......................... 28,600 1,354,925
Ameren Corp. ........................ 22,700 969,006
American Electric Power, Inc. ....... 31,800 1,496,587
Baltimore Gas & Electric Co. ........ 24,600 759,525
Carolina Power & Light Co. .......... 24,700 1,162,444
Central & South West Co. ............ 35,300 968,544
CINergy Corp. ....................... 25,813 887,322
Consolidated Edison Inc. ............ 38,700 2,046,262
Dominion Resources, Inc. ............ 32,700 1,528,725
DTE Energy Co. ...................... 23,700 1,016,137
Duke Energy Co. ..................... 59,730 3,826,453
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Edison International ................ 58,800 $ 1,639,050
Entergy Corp. ....................... 40,200 1,251,225
FirstEnergy Corp. ................... 38,700 1,260,169
FPL Group, Inc. ..................... 30,000 1,848,750
GPU, Inc. ........................... 20,900 923,519
Houston Industries, Inc. ............ 49,200 1,580,550
New Century Energies, Inc. .......... 17,800 867,750
Northern States Power Co. ........... 27,700 768,675
Pacificorp. ......................... 49,200 1,036,275
Peco Energy Corp. ................... 37,100 1,544,287
PG&E Corp. .......................... 63,500 2,000,250
PP&L Resources, Inc. ................ 28,500 794,438
Public Service Enterprise Group ..... 38,400 1,536,000
Sempra Energy ....................... 39,800 1,009,925
Texas Utilities Co. ................. 46,500 2,170,969
Unicom Corporation .................. 35,900 1,384,394
-----------
37,632,156
-----------
UTILITY--GAS (0.3%)
Columbia Gas System, Inc. ........... 13,800 796,950
Consolidated Natural Gas Co. ........ 15,900 858,600
ENRON Corp. ......................... 54,800 3,127,025
Nicor, Inc. ......................... 19,000 802,750
-----------
5,585,325
-----------
UTILITY--TELEPHONE (6.3%)
Alltel Corp. ........................ 45,300 2,709,506
Ameritech Corp. ..................... 183,500 11,629,313
AT&T Corp. .......................... 300,600 22,620,150
Bell Atlantic Corp. ................. 258,592 13,705,376
BellSouth Corp. ..................... 327,000 16,309,125
Frontier Corp. ...................... 28,300 962,200
GTE Corp. ........................... 160,400 10,426,000
SBC Communications, Inc. ............ 325,400 17,449,575
Sprint Corp. ........................ 69,800 5,871,925
US West, Inc. ....................... 81,033 5,236,758
-----------
106,919,928
-----------
TOTAL CREDIT SENSITIVE (24.0%)...... 406,314,854
-----------
ENERGY
COAL & GAS PIPELINES (0.4%)
Burlington Resources, Inc. .......... 27,730 993,081
Coastal Corp. ....................... 34,700 1,212,331
Sonat, Inc. ......................... 29,000 784,813
Tenneco, Inc. ....................... 26,800 912,875
Williams Cos., Inc. ................. 70,700 2,204,956
-----------
6,108,056
-----------
OIL--DOMESTIC (0.8%)
Amerada Hess Corp. .................. 14,900 741,275
Anadarko Petroleum Corp. ............ 21,400 660,725
Apache Corp. ........................ 26,400 668,250
Ashland, Inc. ....................... 14,900 720,787
Atlantic Richfield Co. .............. 52,600 3,432,150
Occidental Petroleum Corp. .......... 58,800 992,250
Phillips Petroleum Co. .............. 42,300 1,803,037
Sunoco, Inc. ........................ 25,100 905,169
Union Pacific Resources Group,
Inc. .............................. 84,508 765,854
Unocal Corp. ........................ 39,200 1,144,150
USX-Marathon Group, Inc. ............ 51,000 1,536,375
-----------
13,370,022
-----------
</TABLE>
24
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OIL--INTERNATIONAL (4.2%)
Chevron Corp. ....................... 109,200 $ 9,056,775
Exxon Corp. ......................... 406,500 29,725,312
Mobil Corp. ......................... 130,500 11,369,813
Royal Dutch Petroleum Co.
(ADR) ............................. 357,900 17,134,462
Texaco, Inc. ........................ 88,800 4,695,300
-------------
71,981,662
-------------
OIL--SUPPLIES & CONSTRUCTION (0.4%)
Baker Hughes, Inc. .................. 51,100 903,831
Halliburton Co. ..................... 72,700 2,153,738
Schlumberger Ltd. ................... 88,800 4,095,900
-------------
7,153,469
-------------
RAILROADS (0.5%)
Burlington Northern Santa Fe ........ 76,853 2,593,789
CSX Corp. ........................... 35,500 1,473,250
Norfolk Southern Corp. .............. 59,500 1,885,406
Union Pacific Corp. ................. 40,200 1,811,513
-------------
7,763,958
-------------
TOTAL ENERGY (6.3%) ................ 106,377,167
-------------
TECHNOLOGY
ELECTRONICS (5.7%)
AMP, Inc. ........................... 36,382 1,894,138
Applied Materials, Inc.* ............ 59,300 2,531,369
BB&T Corp. .......................... 46,500 1,874,531
BMC Software, Inc.* ................. 33,600 1,497,300
Cisco Systems, Inc.* ................ 259,125 24,050,039
EMC Corp.* .......................... 83,100 7,063,500
Harris Corp. ........................ 20,700 758,137
Intel Corp. ......................... 279,100 33,090,794
ITT Industries, Inc. ................ 21,900 870,525
KLA-Tencor Corp.* ................... 20,900 906,537
LSI Logic Corp.* .................... 49,800 803,025
Micron Technology, Inc.* ............ 35,100 1,774,744
Motorola, Inc. ...................... 99,500 6,075,719
Parametric Technology Corp.* ........ 47,600 773,500
Perkin-Elmer Corp. .................. 8,400 819,525
Seagate Technology, Inc.* ........... 39,600 1,197,900
Solectron Corp.* .................... 20,000 1,858,752
Texas Instruments, Inc. ............. 64,300 5,501,669
3Com Corp.* ......................... 58,400 2,617,050
-------------
95,958,754
-------------
OFFICE EQUIPMENT (5.2%)
Apple Computer, Inc.* ............... 22,900 937,469
Ceridian Corp.* ..................... 13,200 921,525
Compaq Computer Corp. ............... 278,698 11,687,897
Compuware Corp.* .................... 28,700 2,242,188
Dell Computer Corp.* ................ 211,100 15,449,881
Hewlett-Packard Co. ................. 172,900 11,811,231
International Business Machines
Corp. ............................. 155,600 28,747,100
PeopleSoft, Inc.* ................... 37,500 710,156
Pitney Bowes, Inc. .................. 45,400 2,999,237
Sun Microsystems, Inc.* ............. 63,200 5,411,500
Unisys Corp.* ....................... 39,400 1,356,838
Xerox Corp. ......................... 54,800 6,466,400
-------------
88,741,422
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OFFICE EQUIPMENT SERVICES (5.2%)
Adobe Systems, Inc. ................. 19,000 $ 888,250
Automatic Data Processing, Inc. ..... 49,900 4,001,356
Computer Associates
International, Inc. ............... 93,125 3,969,453
Computer Sciences Corp. ............. 25,800 1,662,487
Electronic Data Sysytems Corp. ...... 79,700 4,004,925
First Data Corp. .................... 72,900 2,310,019
Gateway 2000, Inc.* ................. 25,800 1,320,638
HBO & Co. ........................... 77,500 2,223,281
Microsoft Corp.* .................... 408,800 56,695,450
Novell, Inc.* ....................... 60,700 1,100,188
Oracle Corp.* ....................... 160,987 6,942,564
Paychex, Inc. ....................... 26,600 1,368,238
Silicon Graphics, Inc.* ............. 63,400 816,275
-------------
87,303,124
-------------
TELECOMMUNICATIONS (4.6%)
AirTouch Communications, Inc.* 95,600 6,895,150
America Online, Inc. ................ 78,000 12,481,170
Ascend Communications, Inc.* ........ 35,100 2,307,825
Lucent Technologies, Inc. ........... 218,688 24,055,680
MCI WorldCom, Inc.* ................. 293,301 21,044,354
Nextel Communications, Inc.
(Class A)* ........................ 46,300 1,093,838
Northern Telecommunications
Ltd. .............................. 108,420 5,434,552
Sprint Corp. (PCS Group)* ........... 74,500 1,722,813
Tellabs, Inc.* ...................... 31,400 2,152,862
-------------
77,188,244
-------------
TOTAL TECHNOLOGY (20.7%) ........... 349,191,544
-------------
DIVERSIFIED
MISCELLANEOUS (1.1%)
Corning, Inc. ....................... 38,500 1,732,500
Honeywell, Inc. ..................... 20,900 1,574,031
Minnesota Mining &
Manufacturing Co. ................. 67,500 4,800,938
Textron, Inc. ....................... 26,700 2,027,531
Tyco International Ltd. ............. 106,786 8,055,669
-------------
TOTAL DIVERSIFIED (1.1%) .......... 18,190,669
-------------
TOTAL COMMON STOCKS (97.8%)
(Cost $1,139,516,074) ............. 1,652,615,559
-------------
PRINCIPAL
AMOUNT
-------
SHORT-TERM DEBT
SECURITIES:
U.S. GOVERNMENT & AGENCIES
Federal Home Loan Bank
4.77%, due 01/20/99 ............... $10,000,000 9,973,083
Federal Home Loan Mortgage
Corp.
4.7%, due 01/04/99** .............. 200,000 199,922
Student Loan Marketing
Association
4.28%, due 01/04/99** ............. 14,700,000 14,694,757
</TABLE>
25
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ----------------
<S> <C> <C>
U.S. Treasury Bill
3.62%, due 01/07/99** ......... $1,850,000 $ 1,848,884
--------------
TOTAL U.S. GOVERNMENT &
AGENCIES (1.6%) ............ 26,716,646
--------------
TOTAL SHORT-TERM DEBT SECURITIES (1.6%)
(Amortized Cost $26,716,646) .. 26,716,646
--------------
TOTAL INVESTMENTS (99.4%)
(Cost/Amortized Cost
$1,166,232,720) ............ 1,679,332,205
OTHER ASSETS
LESS LIABILITIES (0.6%) ....... 11,023,191
--------------
NET ASSETS (100.0%) ............. $1,690,355,396
==============
</TABLE>
- ----------
Financial Futures Contracts outstanding at December 31, 1998:
<TABLE>
<CAPTION>
EXPIRATION NUMBER ORIGINAL VALUE AT UNREALIZED
DESCRIPTION DATE OF CONTRACTS VALUE 12/31/98 APPRECIATION
- ----------------------------- ------------ -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Long S&P 500 Index* ......... 3/99 85 $25,961,551 $26,466,875 $505,324
</TABLE>
- ----------
* Non-income producing.
** Security segregated as collateral on financial futures contracts.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
26
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- --------------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (8.1%)
CBS Corp. (a) .......................... 7,210,000 $ 236,127,500
Chris Craft Industries, Inc.
(Class B)*+ .......................... 1,262,939 60,857,849
Comcast Corp. (Class A) SPL ............ 1,011,800 59,380,012
Liberty Media Group (Class A)* 4,251,444 195,832,139
MediaOne Group, Inc.* .................. 565,000 26,555,000
News Corp. Ltd. (ADR) .................. 2,930,200 77,467,162
Reuters Group PLC (ADR) ................ 1,111,880 70,465,395
Tele-Communications, Inc.
(Class A)* ........................... 1,148,710 63,538,022
Time Warner, Inc. ..................... 357,800 22,205,962
Viacom, Inc. (Class B) (a)* ............ 3,180,800 235,379,200
--------------
TOTAL BUSINESS SERVICES (8.1%). 1,047,808,241
--------------
CAPITAL GOODS
AEROSPACE (1.4%)
Loral Space &
Communications (a)* .................. 10,121,000 180,280,312
--------------
ELECTRICAL EQUIPMENT (0.6%)
Koninklijke Philips Electronics
N.V. (a) ............................. 1,173,000 79,397,437
--------------
TOTAL CAPITAL GOODS (2.0%) ............ 259,677,749
--------------
CONSUMER CYCLICALS
AIRLINES (1.0%)
AMR Corp.* ............................. 270,000 16,031,250
Delta Air Lines, Inc. ................. 1,924,600 100,079,200
Northwest Airlines Corp.
(Class A)* ........................... 445,800 11,395,762
--------------
127,506,212
--------------
AUTO RELATED (0.5%)
Republic Industries, Inc. (a)* ......... 4,649,500 68,580,125
--------------
FOOD SERVICES, LODGING (0.2%)
Starwood Hotels & Resorts .............. 1,094,151 24,823,551
--------------
LEISURE RELATED (3.0%)
Carnival Corp. (Class A) ............... 1,432,200 68,745,600
Cendant Corp. (a)* ..................... 16,373,600 312,121,750
Royal Caribbean Cruises Ltd. ........... 58,000 2,146,000
--------------
383,013,350
--------------
RETAIL--GENERAL (4.7%)
Home Depot, Inc. (a) ................... 4,444,000 271,917,250
Limited, Inc. ......................... 2,824,475 82,262,834
Lowe's Cos., Inc. ...................... 622,800 31,879,575
Office Depot, Inc.* .................... 1,100,000 40,631,250
Tandy Corp. (a) ........................ 3,110,800 128,126,075
Wal-Mart Stores, Inc. ................. 718,000 58,472,125
--------------
613,289,109
--------------
TOTAL CONSUMER CYCLICALS (9.4%) 1,217,212,347
--------------
CONSUMER NONCYCLICALS
DRUGS (5.0%)
Astra AB (A Shares) .................... 2,811,666 57,478,396
Bristol-Myers Squibb Co. (a) ........... 2,032,000 271,907,000
Merck & Co., Inc. (a) .................. 1,503,200 222,003,850
Schering Plough Corp. ................. 1,696,000 93,704,000
--------------
645,093,246
--------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- --------------------
<S> <C> <C>
HOSPITAL SUPPLIES & SERVICES (1.3%)
Abbott Laboratories .................... 1,568,600 $ 76,861,400
Columbia/HCA Healthcare Corp. 2,000,000 49,500,000
Medtronic, Inc. (a) .................... 557,800 41,416,650
--------------
167,778,050
--------------
TOBACCO (2.8%)
Loews Corp. ........................... 2,003,500 196,843,875
Philip Morris Cos., Inc. .............. 3,158,200 168,963,700
--------------
365,807,575
--------------
TOTAL CONSUMER NONCYCLICALS (9.1%)
1,178,678,871
--------------
CREDIT SENSITIVE
BANKS (8.6%)
BankAmerica Corp. ...................... 3,645,700 219,197,712
Bank of Tokyo-Mitsubishi Ltd. .......... 4,825,000 50,662,500
Chase Manhattan Corp. .................. 4,354,836 296,401,025
Citigroup, Inc. (a) .................... 8,343,798 413,017,976
First Union Corp. ...................... 2,205,000 134,091,562
--------------
1,113,370,775
--------------
FINANCIAL SERVICES (5.6%)
American Express Co. .................. 722,400 73,865,400
Associates First Capital Corp.
(Class A) ............................ 3,030,000 128,396,250
Fleet Financial Group, Inc. ........... 384,200 17,168,937
Household International, Inc. ......... 1,008,400 39,957,850
MBNA Corp. ............................. 12,551,287 312,997,720
Morgan Stanley Dean
Witter & Co. ........................ 1,103,166 78,324,786
Newcourt Credit Group, Inc. ........... 169,200 5,911,425
PMI Group, Inc. ....................... 1,217,200 60,099,250
--------------
716,721,618
--------------
INSURANCE (5.4%)
Allstate Corp. ........................ 643,294 24,847,231
American International Group,
Inc. ................................ 5,117,712 494,498,922
Hartford Financial Services
Group, Inc. ......................... 1,092,200 59,934,475
Progressive Corp. (a) .................. 549,900 93,139,312
Providian Financial Corp. ............. 225,000 16,875,000
UNUM Corp. ............................ 174,000 10,157,250
--------------
699,452,190
--------------
REAL ESTATE (1.1%)
CBL & Associates Properties,
Inc. ................................. 912,200 23,546,163
Macerich Co. .......................... 717,500 18,385,938
Simon Property Group, Inc. ............ 1,443,000 41,125,500
Spieker Properties, Inc. .............. 1,373,400 47,553,975
Summit Properties, Inc. ............... 464,100 8,005,725
--------------
138,617,301
--------------
UTILITY--TELEPHONE (1.9%)
AT&T Corp. ............................ 1,652,156 124,324,739
BellSouth Corp. ....................... 21,648 1,079,694
Telecomunicacoes Brasileiras
S.A.-Telebras (ADR) (a) .............. 1,600,000 116,300,000
--------------
241,704,433
--------------
TOTAL CREDIT SENSITIVE (22.6%) 2,909,866,317
--------------
</TABLE>
27
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- --------------------
<S> <C> <C>
ENERGY
OIL--DOMESTIC (1.6%)
Atlantic Richfield Co. ................................................ 2,975,200 $ 194,131,800
Union Pacific Resources Group,
Inc. ................................................................ 640,154 5,801,396
--------------
199,933,196
--------------
OIL--SUPPLIES & CONSTRUCTION (1.4%)
Baker Hughes, Inc. .................................................... 1,365,260 24,148,036
BJ Services Co. (a)* ................................................... 1,651,200 25,800,000
Halliburton Co. (a) .................................................... 2,800,000 82,950,000
Nabors Industries, Inc.* ............................................... 740,300 10,040,319
Transocean Offshore, Inc. ............................................. 1,365,800 36,620,513
--------------
179,558,868
--------------
RAILROADS (0.2%)
Canadian Pacific Ltd. ................................................. 1,352,800 25,534,100
--------------
TOTAL ENERGY (3.2%) ................................................... 405,026,164
--------------
TECHNOLOGY
ELECTRONICS (16.2%)
Cisco Systems, Inc. (a)* ............................................... 5,779,750 536,433,047
EMC Corp. (a)* ......................................................... 130,000 11,050,000
Ingram Micro, Inc. (Class A)*+ ......................................... 2,400,000 83,700,000
Intel Corp. (a) ........................................................ 1,550,000 183,771,875
National Semiconductor
Corp. (a)* ........................................................... 460,000 6,210,000
Network Associates, Inc. (a)* .......................................... 5,169,400 342,472,750
SCI Systems, Inc. (a)*+ ................................................ 3,576,000 206,514,000
Solectron Corp. (a)* ................................................... 1,650,000 153,346,875
Sterling Commerce, Inc.* ............................................... 2,878,582 129,536,190
Texas Instruments, Inc. (a) ............................................ 3,840,000 328,560,000
3Com Corp. (a)* ........................................................ 2,255,700 101,083,556
--------------
2,082,678,293
--------------
OFFICE EQUIPMENT (7.8%)
Ceridian Corp.*+ ....................................................... 3,815,000 266,334,688
Compaq Computer Corp. (a) .............................................. 2,775,000 116,376,563
International Business Machines
Corp. ............................................................... 3,200,000 591,200,000
Sterling Software, Inc.* ............................................... 1,172,400 31,728,075
--------------
1,005,639,326
--------------
OFFICE EQUIPMENT SERVICES (1.6%)
First Data Corp. (a) ................................................... 2,415,000 76,525,313
HBO & Co. ............................................................. 1,025,000 29,404,688
Microsoft Corp. (a)* ................................................... 750,000 104,015,625
--------------
209,945,626
--------------
TELECOMMUNICATIONS (18.5%)
ADC Telecommunications, Inc.* 1,415,000 49,171,250
AirTouch Communications,
Inc. (a)* ............................................................ 1,744,600 125,829,275
Alcatel S.A. (a) ....................................................... 1,288,597 31,490,077
Global TeleSystems Group, Inc.* 153,300 8,546,475
Lucent Technologies, Inc. (a) .......................................... 750,000 82,500,000
Mannesmann AG .......................................................... 2,423,245 280,276,312
Mannesmann AG (ADR) .................................................... 1,437,000 164,895,750
MCI WorldCom, Inc. (a)* ................................................ 15,866,815 1,138,443,976
Nextel Communications, Inc.
(Class A) (a)* ....................................................... 4,745,400 112,110,075
Nokia Oyj (A Shares) ................................................... 259,600 31,265,575
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- --------------------
<S> <C> <C>
Tele-Communications TCI
Ventures Group (Class A) (a)* ........................................ 15,137,552 $ 356,678,569
--------------
2,381,207,334
--------------
TOTAL TECHNOLOGY (44.1%) .............................................. 5,679,470,579
--------------
DIVERSIFIED (1.5%)
MISCELLANEOUS
Tyco International Ltd. ............................................... 2,623,336 197,897,910
--------------
TOTAL COMMON STOCKS (100.0%)
(Cost $8,464,832,387) ................................................. 12,895,638,178
--------------
PREFERRED STOCKS:
CONSUMER CYCLICALS (0.1%)
AUTO RELATED
Republic Industries, Inc.
6.5% Exch. Conv. .................................................... 470,400 7,173,600
--------------
TOTAL PREFERRED STOCKS (0.1%)
(Cost $11,561,746) .................................................... 7,173,600
--------------
PRINCIPAL
AMOUNT
----------
LONG-TERM DEBT SECURITIES:
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Global TeleSystems Group, Inc.
5.75%, 07/01/10 ...................................................... $14,445,000 16,322,850
--------------
TOTAL LONG-TERM DEBT SECURITIES (0.1%)
(Cost $10,714,786) .................................................... 16,322,850
--------------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Eastman Kodak Co.
5.1%, due 02/03/99 ................................................... 25,000,000 24,883,583
Equilon Enterprises
5.24%, due 02/18/99 .................................................. 3,000,000 2,979,200
General Motors Acceptance
Corp.
5.17%, due 01/27/99 .................................................. 8,000,000 7,970,244
Koch Industries
5.05%, due 01/04/99 .................................................. 10,000,000 9,995,792
PepsiCo, Inc.
5.24%, due 01/26/99 .................................................. 4,000,000 3,985,500
Pfizer Inc.
5.25%, due 02/12/99 .................................................. 12,250,000 12,175,398
Procter & Gamble
5.22%, due 01/27/99 .................................................. 4,000,000 3,984,978
Wood Street Funding
5.2%, due 01/04/99 ................................................... 5,400,000 5,397,660
--------------
TOTAL COMMERCIAL PAPER (0.6%)
71,372,355
--------------
TIME DEPOSITS
Canadian Imperial Bank
5.25%, due 01/04/99 .................................................. 58,800,000 58,800,000
Chase Manhattan Corp.
4.5%, due 01/04/99 ................................................... 92,700,000 92,700,000
First National Bank of Chicago
4.875%, due 01/04/99 ................................................. 135,900,000 135,900,000
--------------
TOTAL TIME DEPOSITS (2.2%) ............................................ 287,400,000
--------------
U.S. GOVERNMENT AGENCY (0.1%)
Student Loan Marketing
Association
4.28%, due 01/04/99 .................................................. 18,900,000 18,893,259
--------------
</TABLE>
28
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
--------------- --------------------
<S> <C> <C>
TOTAL SHORT-TERM DEBT SECURITIES (2.9%)
(Amortized Cost $377,665,614) $ 377,665,614
---------------
TOTAL INVESTMENTS (103.1%)
(Cost/Amortized Cost $8,864,774,533) 13,296,800,242
---------------
CALL OPTIONS WRITTEN* (c):
AirTouch Communications, Inc.:
January @ $56.625 ...................................................... 2,000 (3,170,000)
February @ $57.125 ..................................................... 1,000 (1,664,000)
February @ $57.75 ...................................................... 1,000 (1,470,000)
February @ $59.625 ..................................................... 2,500 (3,256,600)
February @ $60.50 ...................................................... 3,000 (3,678,000)
March @ $69.00.......................................................... 1,500 (942,000)
Alcatel S.A.:
January @ $21.00 ....................................................... 2,500 (880,000)
January @ $22.375 ...................................................... 2,500 (585,000)
February @ $26.00 ...................................................... 3,500 (415,500)
February @ $26.125 ..................................................... 2,000 (244,000)
March @ $24.125......................................................... 2,000 (478,000)
BJ Services Co.
February @ $15.75....................................................... 3,000 (435,000)
Bristol-Myers Squibb Co.
March @ $131.75......................................................... 1,500 (1,222,500)
CBS Corp.:
January @ $28.125 ...................................................... 2,500 (1,195,000)
January @ $28.50 ....................................................... 4,000 (1,778,500)
January @ $29.25 ....................................................... 2,000 (800,000)
January @ $29.50 ....................................................... 3,500 (1,306,000)
February @ $28.5 ....................................................... 3,000 (1,551,000)
February @ $29.875 ..................................................... 3,000 (1,014,000)
February @ $31.50 ...................................................... 2,500 (617,500)
March @ $31.625......................................................... 1,500 (492,000)
Cendant Corp.:
January @ $13.50 ....................................................... 3,000 (1,692,000)
January @ $13.625 ...................................................... 3,000 (1,644,000)
January @ $13.875 ...................................................... 6,500 (3,398,891)
January @ $14.00 ....................................................... 3,000 (1,542,000)
February @ $13.0625 .................................................... 3,000 (1,824,000)
February @ $15.125 ..................................................... 3,000 (1,326,000)
February @ $19.25 ...................................................... 3,000 (558,000)
February @ $19.50 ...................................................... 6,000 (926,118)
February @ $19.875...................................................... 2,500 (330,000)
Cisco Systems, Inc.:
January @ $64.25 ....................................................... 6,000 (17,166,000)
January @ $64.5625 ..................................................... 3,750 (10,612,500)
January @ $65.375 ...................................................... 2,500 (6,875,000)
January @ $65.9375 ..................................................... 1,500 (4,083,345)
January @ $67.00 ....................................................... 2,000 (5,212,000)
January @ $67.1250 ..................................................... 2,000 (5,168,622)
January @ $67.3125 ..................................................... 2,000 (5,172,000)
January @ $67.6875 ..................................................... 3,500 (8,834,000)
January @ $74.25 ....................................................... 3,000 (5,703,000)
January @ $75.625 ...................................................... 1,500 (2,668,500)
February @ $65.375 ..................................................... 3,000 (8,361,000)
February @ $66.125 ..................................................... 2,000 (5,458,000)
February @ $66.5625 .................................................... 2,000 (5,390,000)
February @ $72.125 ..................................................... 1,500 (3,297,000)
February @ $73.25 ...................................................... 1,500 (3,198,000)
February @ $75.375 ..................................................... 1,500 (2,777,790)
February @ $76.25 ...................................................... 1,000 (1,780,000)
February @ $77.00 ...................................................... 1,500 (2,526,000)
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
--------------- --------------------
<S> <C> <C>
February @ $78.00 ...................................................... 1,000 $ (1,680,000)
February @ $78.375 ..................................................... 2,000 (3,296,000)
February @ $81.375 ..................................................... 1,500 (2,154,000)
March @ $94.25 ......................................................... 4,000 (3,082,860)
March @ $95.250......................................................... 1,500 (1,129,500)
Citigroup, Inc.:
January @ $42.875 ...................................................... 2,000 (1,424,000)
January @ $43.6250 ..................................................... 3,000 (1,815,000)
January @ $43.875 ...................................................... 2,500 (1,600,000)
January @ $45.00 ....................................................... 3,000 (1,416,000)
January @ $45.375 ...................................................... 4,000 (1,984,000)
January @ $46.00........................................................ 3,000 (1,251,000)
Compaq Computer Corp.
February @ $40.125...................................................... 2,250 (1,003,500)
EMC Corp.
February @ $75.5625..................................................... 1,000 (1,177,000)
First Data Corp.
January @ $27.50........................................................ 2,000 (1,023,280)
Halliburton Co.:
January @ $31.375 ...................................................... 3,000 (345,000)
January @ $32.50 ....................................................... 3,000 (207,000)
January @ $37.625 ...................................................... 2,500 (15,000)
January @ $37.875 ...................................................... 2,500 (25,000)
February @ $30.875 ..................................................... 5,000 (937,688)
February @ $31.6250 .................................................... 1,500 (127,500)
February @ $31.750 ..................................................... 3,000 (407,580)
February @ $32.00 ...................................................... 3,000 (483,210)
February @ $32.1875 .................................................... 3,000 (414,000)
March @ $32.250......................................................... 1,500 (270,150)
Home Depot, Inc.:
March @ $59.625 ........................................................ 2,000 (890,000)
March @ $60.875......................................................... 1,500 (615,000)
Ingram Micro, Inc. (Class A):
January @ $43.50 ....................................................... 3,000 (27,000)
January @ $45.8125 ..................................................... 3,000 (738)
January @ $46.125 ...................................................... 1,500 (9,000)
January @ $46.500 ...................................................... 3,000 0
February @ $40.375 ..................................................... 2,500 (222,500)
February @ $42.125 ..................................................... 2,500 (83,005)
February @ $42.50 ...................................................... 3,000 (171,000)
February @ $43.25 ...................................................... 2,500 (46,570)
February @ $46.25....................................................... 3,000 (126,000)
Intel Corp.:
January @ $95.25 ....................................................... 2,500 (5,885,000)
January @ $96.875 ...................................................... 1,000 (2,195,860)
January @ $103.00 ...................................................... 1,500 (2,442,000)
January @ $105.875 ..................................................... 1,000 (1,419,000)
January @ $110.50 ...................................................... 1,000 (1,100,000)
February @ $114.875 .................................................... 1,500 (1,263,945)
March @ $123.75......................................................... 1,500 (952,500)
Koninklijke Philips Electronics N.V.:
February @ $60.25 ...................................................... 1,500 (1,413,000)
March @ $66.75.......................................................... 2,000 (1,186,000)
Loral Space & Communications:
February @ $17.5625 .................................................... 1,500 (270,000)
February @ $17.75 ...................................................... 3,000 (597,000)
February @ $18.00 ...................................................... 3,000 (534,000)
February @ $18.125 ..................................................... 3,000 (506,190)
February @ $19.625...................................................... 3,500 (311,500)
Lucent Technologies, Inc.:
January @ $89.6875 ..................................................... 3,000 (6,216,000)
February @ $87.625...................................................... 1,500 (3,433,500)
</TABLE>
29
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
--------------- --------------------
<S> <C> <C>
February @ $90.00 ........... 3,000 $ (6,222,000)
MCI WorldCom, Inc.:
January @ $53.78 ............ 3,500 (6,374,200)
January @ $55.00 ............ 2,500 (4,265,000)
January @ $55.8125 .......... 3,000 (4,863,000)
January @ $55.875 ........... 3,000 (4,794,000)
January @ $56.00 ............ 3,500 (5,582,500)
January @ $58.50 ............ 3,000 (4,065,000)
January @ $58.875 ........... 2,500 (3,283,325)
January @ $60.125 ........... 3,000 (3,629,700)
February @ $54.28 ........... 2,000 (3,572,000)
February @ $55.00 ........... 6,000 (10,281,000)
February @ $56.25 ........... 3,000 (4,832,880)
February @ $58.125 .......... 3,500 (5,001,500)
February @ $60.00 ........... 2,500 (3,157,500)
February @ $60.87 ........... 2,000 (2,316,000)
February @ $61.375 .......... 2,500 (2,940,000)
February @ $62.35 ........... 2,000 (2,016,000)
February @ $63.00 ........... 2,500 (2,500,000)
February @ $69.9375 ......... 4,000 (2,192,000)
February @ $70.0625 ......... 4,000 (2,200,000)
March @ $69.25 .............. 4,000 (2,201,160)
March @ $70.75 .............. 2,000 (1,024,000)
March @ $74.10............... 2,500 (805,000)
Medtronic, Inc.
January @ $62.375 ........... 2,000 (2,384,000)
Merck & Co., Inc.
February @ $155.375.......... 2,500 (725,000)
Microsoft Corp.:
January @ $109.375 .......... 4,000 (11,793,440)
January @ $111.00 ........... 1,500 (4,225,500)
January @ $112.625........... 2,000 (5,286,000)
National Semiconductor Corp.:
January @ $14.5625 .......... 2,000 (136,000)
February @ $13.75............ 2,500 (262,500)
Network Associates, Inc.:
January @ $45.5625 .......... 2,500 (5,205,000)
February @ $63.1022 ......... 1,950 (1,472,250)
February @ $63.4375.......... 550 (402,050)
Nextel Communications, Inc.
(Class A):
February @ $20.75 ........... 3,000 (1,198,440)
February @ $21.375 .......... 1,500 (517,500)
March @ $20.50 .............. 2,500 (1,055,000)
March @ $20.5516............. 3,000 (1,221,000)
Progressive Corp.
January @ $143.284 .......... 1,000 (2,618,000)
Republic Industries, Inc.:
January @ $17.50 ............ 5,500 (78,048)
January @ $17.6875 .......... 2,000 (510)
January @ $17.75............. 3,000 (27,000)
SCI Systems, Inc.:
January @ $40.125 ........... 1,500 (2,649,000)
January @ $40.75 ............ 3,000 (5,175,000)
January @ $41.50 ............ 3,000 (4,971,000)
January @ $41.6215 .......... 2,000 (3,240,000)
January @ $44.69 ............ 1,950 (2,578,655)
January @ $45.2309........... 1,050 (1,334,559)
Solectron Corp.:
January @ $65.375 ........... 1,000 (2,768,000)
February @ $68.00 ........... 1,000 (2,543,000)
February @ $73.7561 ......... 2,000 (4,036,800)
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
--------------- --------------------
<S> <C> <C>
February @ $74.250 .......... 1,000 $ (1,990,000)
February @ $80.875 .......... 2,000 (3,048,000)
March @ $88.250 ............. 1,500 (1,489,500)
March @ $89.50............... 1,000 (1,009,000)
Tandy Corp.:
February @ $40.00 ........... 3,000 (978,000)
February @ $40.50 ........... 2,000 (622,000)
February @ $41.00 ........... 2,000 (487,620)
February @ $41.9981.......... 4,000 (1,096,000)
Tele-Communications TCI
Ventures Group (Class A):
January @ $19.25 ............ 2,000 (916,000)
January @ $19.6875 .......... 2,500 (1,035,000)
January @ $18.6875 .......... 3,000 (1,542,000)
February @ $20.4271 ......... 360 (132,120)
February @ $20.6198 ......... 1,200 (422,400)
Telecomunicacoes Brasileiras
S.A.-Telebras (ADR):
January @ $74.5 ............. 3,000 (228,000)
January @ $81.75 ............ 3,000 (94,818)
January @ $81.875 ........... 2,000 (450,000)
January @ $84.00 ............ 1,500 (236,516)
January @ $86.00 ............ 2,000 (167,116)
February @ $83.75 ........... 2,000 (414,000)
February @ $85.5625 ......... 1,500 (303,000)
February @ $93.00............ 1,000 (144,000)
Texas Instruments, Inc.:
January @ $62.625 ........... 2,000 (4,622,000)
January @ $63.25 ............ 2,000 (4,524,000)
January @ $63.625 ........... 3,500 (7,763,000)
January @ $64.00 ............ 2,000 (4,216,000)
January @ $68.5 ............. 2,000 (3,490,000)
January @ $75.00 ............ 1,000 (1,115,381)
January @ $78.0625 .......... 2,000 (1,906,000)
January @ $78.125 ........... 1,000 (928,000)
February @ $67.5625 ......... 1,500 (2,799,000)
February @ $68.25 ........... 2,000 (3,580,000)
February @ $69.125 .......... 1,500 (2,632,530)
February @ $72.750 .......... 2,000 (2,823,996)
February @ $76.125 .......... 2,500 (2,939,448)
February @ $77.00 ........... 2,000 (2,438,680)
February @ $77.375 .......... 2,000 (2,084,000)
February @ $78.5 ............ 3,500 (3,524,820)
February @ $84.75 ........... 2,000 (1,322,548)
February @ $88.75............ 1,000 (541,000)
Viacom, Inc. (Class B):
January @ $59.74 ............ 1,050 (1,510,950)
January @ $59.75 ............ 850 (1,223,150)
January @ $60.50 ............ 1,500 (2,064,000)
January @ $60.75 ............ 2,000 (2,678,000)
January @ $61.00 ............ 2,000 (2,640,000)
January @ $61.53 ............ 2,500 (3,205,000)
January @ $62.875 ........... 2,000 (2,252,000)
February @ $64.625 .......... 2,000 (2,012,000)
February @ $64.75 ........... 2,000 (2,042,000)
February @ $65.163 .......... 1,500 (1,461,000)
February @ $65.50 ........... 2,000 (1,892,000)
February @ $67.125 .......... 2,000 (1,550,000)
February @ $67.50 ........... 2,000 (1,588,280)
March @ $72.125.............. 1,500 (790,500)
</TABLE>
30
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE COMMON STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER OF VALUE
CONTRACTS (B) (NOTE 1)
--------------- --------------------
<S> <C> <C>
3Com Corp.:
January @ $33.75 ................ 2,500 $ (2,850,000)
January @ $34.8125 .............. 2,500 (2,512,790)
January @ $34.875 ............... 2,000 (2,052,000)
January @ $35.00 ................ 2,500 (2,487,842)
January @ $35.125 ............... 2,500 (2,472,500)
February @ $39.50 ............... 1,000 (668,000)
February @ $40.9375 ............. 2,500 (1,382,500)
March @ $47.625 ................. 1,500 (480,000)
---------------
TOTAL CALL OPTIONS WRITTEN (-3.7%)
(Premiums Received $195,807,516) (471,793,964)
---------------
OTHER ASSETS
LESS LIABILITIES (0.6%) ......... 71,114,540
---------------
NET ASSETS (100.0%) ............... $12,896,120,818
===============
</TABLE>
- ----------
* Non-income producing.
+ Affiliated company as defined under the Investment Company Act of 1940
(See Note 6).
(a) Fully or partially pledged as collateral on outstanding written call
options.
(b) One contract relates to 100 shares.
(c) Covered call option contracts written in connection with securities
held.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
31
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BASIC MATERIALS (1.0%)
CHEMICALS
Akzo Nobel N.V. ........................................................ 310,000 $14,114,170
-----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.7%)
Waste Management, Inc. ................................................. 223,050 10,399,706
-----------
PRINTING, PUBLISHING &
BROADCASTING (3.1%)
CBS Corp. .............................................................. 240,000 7,860,000
Liberty Media Group (Class A)* ......................................... 306,312 14,109,496
Reuters Group PLC ...................................................... 400,000 4,199,527
Reuters Group PLC (ADR) ................................................ 78,620 4,982,543
Scripps Co. (E.W.) (Class A) ........................................... 100,000 4,975,000
TVI Televisao Independente SA* 1,175 0
United News & Media PLC ................................................ 800,000 7,014,742
-----------
43,141,308
-----------
TRUCKING, SHIPPING (0.1%) ..............................................
Fukuyama Transporting Co., Ltd. 159,000 690,386
-----------
TOTAL BUSINESS SERVICES (3.9%) 54,231,400
-----------
CAPITAL GOODS
BUILDING & CONSTRUCTION (1.1%)
ABB AG ................................................................. 7,000 8,217,281
Daito Trust Construction
Co. Ltd. ............................................................. 846,600 7,344,452
-----------
15,561,733
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (0.7%)
Lafarge SA ............................................................. 100,000 9,499,955
-----------
ELECTRICAL EQUIPMENT (0.6%)
Schneider SA ........................................................... 146,000 8,854,817
-----------
MACHINERY (1.6%)
AlliedSignal, Inc. ..................................................... 222,000 9,837,375
United Technologies Corp. .............................................. 120,000 13,050,000
-----------
22,887,375
-----------
TOTAL CAPITAL GOODS (4.0%) ............................................ 56,803,880
-----------
CONSUMER CYCLICALS
AIRLINES (1.2%)
British Airways PLC .................................................... 845,000 5,697,585
Continental Airlines, Inc.
(Class B)* ........................................................... 129,000 4,321,500
KLM .................................................................... 185,000 5,595,612
Northwest Airlines Corp.
(Class A)* ........................................................... 51,100 1,306,244
-----------
16,920,941
-----------
AUTO RELATED (0.4%)
Autoliv, Inc. .......................................................... 174,000 6,254,393
-----------
AUTOS & TRUCKS (1.2%)
Honda Motor Co. Ltd. ................................................... 202,000 6,640,850
Volkswagen AG .......................................................... 121,000 9,787,459
-----------
16,428,309
-----------
FOOD SERVICES, LODGING (0.5%)
Compass Group PLC ...................................................... 625,800 7,168,868
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
HOUSEHOLD FURNITURE, APPLIANCES (0.6%)
Sony Corp. ............................................................. 112,400 $ 8,197,182
-----------
LEISURE RELATED (3.0%)
Carnival Corp. (Class A) ............................................... 360,000 17,280,000
Harley-Davidson, Inc. .................................................. 312,400 14,799,950
Hoyts Cinemas Group+ ................................................... 1,370,000 1,150,068
Ladbroke Group PLC ..................................................... 1,250,000 5,022,711
Nintendo Co. Ltd. ...................................................... 34,100 3,308,773
-----------
41,561,502
-----------
PHOTO & OPTICAL (0.7%)
Fuji Photo Film Co. .................................................... 264,000 9,825,432
-----------
RETAIL--GENERAL (4.8%)
Dayton Hudson Corp. .................................................... 150,000 8,137,500
Dixons Group PLC ....................................................... 800,000 11,254,201
Home Depot, Inc. ....................................................... 331,200 20,265,300
Japan Airport Terminal Co. Ltd. 800 4,927
Koninklijke Ahold NV ................................................... 439,000 16,223,761
Wal-Mart Stores, Inc. .................................................. 150,000 12,215,625
-----------
68,101,314
-----------
TOTAL CONSUMER CYCLICALS (12.4%)
174,457,941
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.8%)
Coca-Cola Amatil, Ltd. ................................................. 1,135,000 4,228,457
Diageo PLC ............................................................. 1,804,800 20,539,803
-----------
24,768,260
-----------
DRUGS (8.6%)
Astra AB (A Shares) .................................................... 240,000 4,906,278
Bristol-Myers Squibb Co. ............................................... 194,000 25,959,625
Merck & Co., Inc. ...................................................... 74,100 10,943,644
Novartis AG ............................................................ 2,058 4,051,476
Novartis AG (ADR) ...................................................... 20,000 1,965,810
Orion-Yhtyma Oy (B Shares) ............................................. 182,000 4,368,899
Pfizer, Inc. ........................................................... 132,000 16,557,750
Sanofi SA .............................................................. 85,000 13,990,518
Santen Pharmaceutical Co. Ltd. ......................................... 600,000 11,537,439
Schering Plough Corp. .................................................. 192,000 10,608,000
Smithkline Beecham PLC ................................................. 200,000 2,795,248
Takeda Chemical Inds. .................................................. 71,000 2,736,819
Yamanouchi Pharmaceutical
Co. Ltd. ............................................................. 354,000 11,418,343
-----------
121,839,849
-----------
FOODS (1.7%)
Nestle SA .............................................................. 11,000 23,981,043
-----------
HOSPITAL SUPPLIES & SERVICES (0.2%)
Boston Scientific Corp.* ............................................... 83,300 2,233,481
-----------
RETAIL--FOOD (1.9%)
Familymart Co. ......................................................... 228,700 11,429,934
Kroger Co.* ............................................................ 250,000 15,125,000
Seven-Eleven Japan Co. Ltd. ............................................ 800 64,510
-----------
26,619,444
-----------
SOAPS & TOILETRIES (2.5%)
Avon Products, Inc. .................................................... 260,000 11,505,000
Gillette Co. ........................................................... 267,400 12,918,763
Kao Corp. .............................................................. 290,000 6,552,946
Shiseido Co., Ltd. ..................................................... 300,000 3,859,991
-----------
34,836,700
-----------
</TABLE>
32
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
TOBACCO (4.5%)
Japan Tobacco, Inc. ................ 1,040 $ 10,413,824
Philip Morris Cos., Inc. ........... 480,400 25,701,400
Seita .............................. 236,000 14,777,708
Tabacalera SA--A ................... 515,000 12,972,840
-------------
63,865,772
-------------
TOTAL CONSUMER NONCYCLICALS (21.2%) 298,144,549
-------------
CREDIT SENSITIVE
BANKS (9.8%)
Banco Bilbao Vizcaya SA ............ 460,000 7,201,661
Bank of Scotland ................... 1,340,000 15,985,824
Bank of Tokyo-Mitsubishi Ltd. ...... 500,000 5,183,872
BankAmerica Corp. .................. 297,100 17,863,137
Chase Manhattan Corp. .............. 318,976 21,710,304
Citigroup, Inc. .................... 549,699 27,210,100
ForeningsSparbanken AB ............. 398,700 10,342,093
Royal Bank of Scotland PLC ......... 697,000 11,133,074
Standard Chartered PLC ............. 297,900 3,452,254
Tokai Bank ......................... 1,180,000 5,583,695
UBS AG--Registered ................. 6,000 1,846,154
Unicredito Italiano Spa ............ 1,740,000 10,307,409
-------------
137,819,577
-------------
FINANCIAL SERVICES (5.5%)
Associates First Capital Corp.
(Class A) ........................ 438,000 18,560,250
CMIC Finance & Securities
Public Co. Ltd.* ................. 724,700 0
Credit Saison Co. .................. 354,450 8,747,393
Daiwa Securities Co. Ltd. .......... 1,750,000 5,985,822
MBNA Corp. ......................... 837,150 20,876,428
Morgan Stanley Dean Witter &
Co. .............................. 156,300 11,097,300
Newcourt Credit Group, Inc. ........ 200,000 6,961,613
Schwab (Charles) Corp. ............. 99,700 5,601,894
-------------
77,830,700
-------------
INSURANCE (4.3%)
American International
Group, Inc. ...................... 239,062 23,099,366
ING Groep N.V. ..................... 270,000 16,462,538
SunAmerica, Inc. ................... 47,000 3,812,875
Zurich Allied AG ................... 23,500 17,425,811
-------------
60,800,590
-------------
REAL ESTATE (0.0%)
Mandamus AB* ....................... 485 2,725
-------------
UTILITY--ELECTRIC (0.8%)
AES Corp.* ......................... 240,000 11,370,000
-------------
UTILITY--TELEPHONE (2.5%)
Hellenic Telecommunication
Organization SA .................. 5,838 155,399
Telecom Italia Spa ................. 1,670,000 14,240,702
Telecomunicacoes Brasileiras
S.A.-Telebras (ADR)* ............. 100,000 7,268,750
Telefonica de Espana ............... 300,000 13,319,730
Telefonica S.A.--Bonus Rights* ..... 6,000 5,319
-------------
34,989,900
-------------
TOTAL CREDIT SENSITIVE (22.9%) 322,813,492
-------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
ENERGY
OIL--INTERNATIONAL (1.7%)
ENI Spa ............................ 840,000 $ 5,486,544
Repsol SA .......................... 185,000 9,853,996
Total SA--B ........................ 85,000 8,607,210
-------------
23,947,750
-------------
OIL--SUPPLIES & CONSTRUCTION (1.2%)
BJ Services Co.* ................... 104,000 1,625,000
Halliburton Co. .................... 378,900 11,224,912
Noble Drilling Corp.* .............. 297,000 3,842,438
-------------
16,692,350
-------------
TOTAL ENERGY (2.9%) ............... 40,640,100
-------------
TECHNOLOGY
ELECTRONICS (7.7%)
Altera Corp.* ...................... 256,000 15,584,000
Cisco Systems, Inc.* ............... 400,425 37,164,445
Intel Corp. ........................ 32,000 3,794,000
Sanmina Corp.* ..................... 226,000 14,125,000
Solectron Corp.* ................... 338,200 31,431,463
TDK Corp. .......................... 69,000 6,316,083
-------------
108,414,991
-------------
OFFICE EQUIPMENT (3.3%)
Canon, Inc. ........................ 329,000 7,040,629
Compaq Computer Corp. .............. 457,000 19,165,438
Dell Computer Corp.* ............... 274,000 20,053,375
-------------
46,259,442
-------------
OFFICE EQUIPMENT SERVICES (2.1%)
Microsoft Corp.* ................... 180,000 24,963,750
Misys PLC .......................... 728,000 5,302,353
-------------
30,266,103
-------------
TELECOMMUNICATIONS (5.7%)
MCI WorldCom, Inc.* ................ 500,097 35,881,960
Northern Telecommunications
Ltd. ............................. 125,000 6,265,625
NTT Mobile Communication
Network, Inc. .................... 200 8,241,028
Tele-Communications TCI
Ventures Group (Class A)* ........ 885,350 20,861,059
Vodafone Group PLC ................. 540,000 8,769,092
-------------
80,018,764
-------------
TOTAL TECHNOLOGY (18.8%) .......... 264,959,300
-------------
DIVERSIFIED
MISCELLANEOUS (2.6%)
Tomkins PLC ........................ 2,000,000 9,433,962
Tyco International Ltd. ............ 254,984 19,235,356
U.S. Industries, Inc. .............. 395,000 7,356,875
-------------
TOTAL DIVERSIFIED (2.6%) .......... 36,026,193
-------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (89.7%)
(Cost $999,076,579)............... 1,262,191,025
-------------
</TABLE>
33
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GLOBAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ -------------
<S> <C> <C>
PREFERRED STOCKS:
BUSINESS SERVICES (0.5%)
PRINTING, PUBLISHING &
BROADCASTING
ProSieben Media AG ................ 148,000 $ 7,086,949
-----------
CONSUMER CYCLICALS (0.4%)
RETAIL--GENERAL
Hornbach Holding AG ............... 87,449 5,221,227
-----------
CONSUMER NONCYCLICALS (0.2%)
SOAPS & TOILETRIES
Wella AG .......................... 3,130 2,629,463
-----------
TECHNOLOGY (1.9%)
TELECOMMUNICATIONS
Nokia Oyj (A Shares) .............. 228,000 27,723,355
-----------
TOTAL PREFERRED STOCKS (3.0%)
(Cost $30,478,415) ............... 42,660,994
-----------
PRINCIPAL
AMOUNT
---------
LONG-TERM DEBT SECURITIES:
CREDIT SENSITIVE (0.0%)
BANKS
Grupo Financiero Banorte
Zero Coupon, 12/05/02 ........... $ 165,700 16,741
-----------
TOTAL LONG-TERM DEBT SECURITIES (0.0%)
(Amortized Cost $20,239) ......... 16,741
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank
4.77%, due 01/20/99 ....... $30,000,000 $ 29,919,250
Federal Home Loan Mortgage
Corp.:
4.7%, due 01/04/99 ......... 64,600,000 64,574,698
5.1%, due 01/14/99 ......... 20,000,000 19,963,311
--------------
TOTAL U.S. GOVERNMENT AGENCIES (8.1%) 114,457,259
--------------
TOTAL SHORT-TERM DEBT SECURITIES (8.1%)
(Amortized Cost $114,457,259) 114,457,259
--------------
TOTAL INVESTMENTS (100.8%)
(Cost/Amortized Cost $1,144,032,492) 1,419,326,019
OTHER ASSETS
LESS LIABILITIES (-0.8%) .. (11,123,246)
--------------
NET ASSETS (100.0%) ......... $1,408,202,773
==============
</TABLE>
- ----------
* Non-income producing.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $1,150,068 or
0.1% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
34
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
AUSTRALIA
Brambles Industries Ltd. ............ 60,000 $1,461,406
Broken Hill Proprietary Co. Ltd. 30,000 220,939
E.R.G. Limited ...................... 1,000,000 625,004
Hoyts Cinemas Group+ ................ 450,000 377,760
Oil Search Ltd. ..................... 400,000 404,414
Orogen Minerals Ltd. (GDR)+ ......... 50,000 515,000
Powertel Ltd.* ...................... 450,000 281,252
QCT Resources Ltd. .................. 185,000 111,091
Southern Pacific Petroleum .......... 250,000 249,695
----------
TOTAL AUSTRALIA (2.0%) ............ 4,246,561
----------
AUSTRIA
Austria Tabakwerke AG ............... 24,400 1,870,760
Erste Bank Der Oesterreichischen
Sparkassen AG ..................... 5,470 292,732
KTM Motorradholding AG .............. 10,000 672,892
Mayr-Melnhof Karton AG+ ............. 18,000 841,244
OMV AG .............................. 3,000 282,717
----------
TOTAL AUSTRIA (1.9%) .............. 3,960,345
----------
BELGIUM
Mobistar SA* ........................ 8,000 401,504
Virgin Express Holdings PLC
(ADR)* ............................ 50,000 400,000
----------
TOTAL BELGIUM (0.4%) .............. 801,504
----------
BRAZIL (0.4%)
Cia Paranaense de Energia-Copel
(ADR) ............................. 115,000 819,375
----------
CANADA
Boardwalk Equities, Inc.* ........... 40,000 439,818
Fracmaster Ltd.+ .................... 214,300 627,424
National Bank of Canada ............. 50,000 806,766
Rofin-Sinar Technologies, Inc.* ..... 35,000 328,125
Talisman Energy, Inc.* .............. 20,000 350,683
----------
TOTAL CANADA (1.2%) ............... 2,552,816
----------
CHILE (0.0%)
Enersis S.A. (ADR) .................. 1,000 25,812
----------
DENMARK
Carli Gry International A/S ......... 20,000 1,206,693
Coloplast A/S B ..................... 7,000 831,707
Vestas Wind Systems A/S* ............ 5,300 283,966
----------
TOTAL DENMARK (1.1%) .............. 2,322,366
----------
FINLAND
Amer Group Ltd.* .................... 33,900 350,372
Fortum Oyj* ......................... 52,301 317,973
Helsinki Telephone Corp. ............ 30,500 1,812,432
Kesko ............................... 28,000 417,341
Nokia Oyj (A Shares) ................ 6,000 722,625
Orion-Yhtyma Oy (B Shares) .......... 56,000 1,344,277
Sampo Insurance Co. (A Shares) 25,000 948,725
----------
TOTAL FINLAND (2.8%) .............. 5,913,745
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
FRANCE
Accor SA ............................ 5,500 $1,190,625
Banque Nationale de Paris ........... 700 57,633
Bouygues Offshore SA (ADR) .......... 22,000 233,750
Canal Plus .......................... 3,000 818,499
Carrefour ........................... 1,000 754,808
Cie de St. Gobain ................... 250 35,289
Cie Generale de Geophysique
SA (ADR)* ......................... 68,000 739,500
Essilor International ............... 4,000 1,574,381
France Telecom SA ................... 20,000 1,588,693
Lafarge SA .......................... 7,000 664,997
Louis Dreyfus Citrus ................ 23,000 576,492
Michelin (CGDE), (Class B) .......... 7,000 279,900
Moulinex* ........................... 25,000 384,650
PSA Peugeot Citroen ................. 200 30,951
Sanofi SA ........................... 12,000 1,975,132
Schneider SA ........................ 11,000 667,144
Seita ............................... 18,000 1,127,113
Societe Generale .................... 3,000 485,732
Suez Lyonnaise des Eaux ............. 4,000 821,540
Total SA-B .......................... 5,480 554,912
Vivendi ............................. 7,540 1,955,989
----------
TOTAL FRANCE (7.8%) ............... 16,517,730
----------
GERMANY
Allianz AG .......................... 1,500 558,056
Apcoa Parking AG .................... 800 56,646
Bayer AG ............................ 4,500 188,884
B.U.S. Berzelius Umwelt-Service
AG ................................ 25,200 393,159
Deutsche Bank AG .................... 3,000 176,922
SGL Carbon AG+ ...................... 9,500 575,187
----------
TOTAL GERMANY (0.9%) .............. 1,948,854
----------
GREECE
A.G. Petzetakis SA* ................. 200,000 1,393,455
Hellenic Telecommunication
Organization SA ................... 17,138 456,197
----------
TOTAL GREECE (0.9%) ............... 1,849,652
----------
HONG KONG
Aeon Credit Service (Asia) Co.
Ltd. .............................. 658,000 135,893
Cheung Kong Holdings Ltd. ........... 50,000 359,805
Guangdong Kelon Electrical
Holdings Co. Ltd. ................. 800,000 712,511
HSBC Holdings PLC (H.K.$) ........... 9,200 229,191
JCG Holdings Ltd. ................... 250,000 80,674
VTech Holdings Ltd. ................. 50,000 218,142
----------
TOTAL HONG KONG (0.8%) ............ 1,736,216
----------
HUNGARY (0.8%)
Magyar Tavkozlesi Rt (ADR) .......... 60,000 1,788,750
----------
INDIA
Videsh Sanchar Nigam Ltd.
(GDR)+ ............................ 1,000 12,250
Videsh Sanchar Nigam Ltd.
(GDR) ............................. 51,000 573,750
----------
TOTAL INDIA (0.3%) ................ 586,000
----------
</TABLE>
35
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
INDONESIA
Gulf Indonesia Resources Ltd.* ..... 49,900 $ 324,350
PT Citatah ......................... 377,500 33,031
PT Great River International ....... 1,367,000 46,991
---------
TOTAL INDONESIA (0.2%) ........... 404,372
---------
IRELAND
Avonmore Waterford Group
PLC .............................. 200,000 624,665
Bank of Ireland .................... 75,000 1,667,634
Crean (James) PLC--Units ........... 60,000 75,852
Fyffes PLC ......................... 900,000 2,007,853
Green Property PLC ................. 140,000 791,243
Irish Continental Group PLC ........ 68,000 804,034
Irish Life PLC ..................... 200,000 1,890,120
Marlborough International PLC* 111,400 356,223
Smurfit (Jefferson) Group .......... 200,000 359,389
Unidare PLC ........................ 385,000 1,002,067
---------
TOTAL IRELAND (4.5%) ............. 9,579,080
---------
ISRAEL (0.1%)
Home Centers Ltd. .................. 15,400 165,550
---------
ITALY
Banca Commerciale Italiana ......... 10,000 68,945
Banca Nazionale del Lavoro
(BNL)* ........................... 14,000 39,117
Banca Nazionale del Lavoro
(BNL)* ........................... 180,000 538,313
Fiat Spa ........................... 22,000 76,371
Finmeccanica Spa* .................. 408,000 417,746
Gildemeister Italiana Spa .......... 46,300 168,287
Industrie Natuzzi Spa (ADR) ........ 20,000 497,500
Mediolanum Spa ..................... 200,000 1,481,705
Seat Pagine Gialle Spa* ............ 4,000,000 3,773,813
Telecom Italia Spa ................. 40,000 341,095
Telecom Italia Spa ................. 130,800 822,691
Unicredito Italiano Spa ............ 23,400 138,617
Unione Immobiliare Spa* ............ 22,500 11,730
Zucchini Spa ....................... 60,000 395,525
---------
TOTAL ITALY (4.1%) ............... 8,771,455
---------
JAPAN
Aiful Corp. ........................ 25,100 1,525,795
Aiwa Co. Ltd. ...................... 16,000 422,508
Akita Bank ......................... 21,000 89,880
Asahi Diamond Industry Co.
Ltd. ............................. 11,000 54,781
Bank of Tokyo-Mitsubishi Ltd. ...... 70,000 725,742
Canon, Inc. ........................ 14,000 299,601
Credit Saison Co. .................. 30,000 740,363
Dai-Ichi Kangyo Bank Ltd. .......... 54,000 288,064
Daibiru Corp. ...................... 14,000 89,322
Daito Trust Construction Co.
Ltd. ............................. 42,100 365,227
Data Communication System Co. 16,700 341,103
DDI Corp. .......................... 78 290,297
Familymart Co. ..................... 15,100 754,665
Fanuc Ltd. ......................... 900 30,864
Fuji Photo Film Co. ................ 42,000 1,563,137
Fuji Soft ABC, Inc. ................ 14,000 713,336
Fujikura Ltd. ...................... 104,000 558,476
Fujimi, Inc. ....................... 17,300 600,939
Home Wide Corp. .................... 15,000 59,149
Honda Motor Co. Ltd. ............... 26,000 854,763
Ishihara Sangyo Kaisha Ltd.* ....... 10,000 16,393
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Japan Airport Terminal Co. Ltd. 64,000 $ 394,152
Japan Tobacco, Inc. ................ 90 901,196
Kaneshita Construction ............. 12,000 65,928
Kao Corp. .......................... 76,000 1,717,324
Keyence Corp. ...................... 8,600 1,059,282
Kikuchi Co. Ltd. ................... 10,000 37,218
King Co. ........................... 32,000 42,534
Koa Fire & Marine Insurance
Co. Ltd. ......................... 8,000 24,883
Meitec Corp. ....................... 28,300 707,187
Mercian Corp. ...................... 53,000 216,509
Micronics Japan Co. Ltd. ........... 18,000 263,181
Minebea Co. Ltd. ................... 35,000 401,329
Mitsubishi Trust & Banking
Corp. ............................ 20,000 128,844
Mitsui Home Co. Ltd. ............... 16,000 73,726
Murata Manufacturing Co., Ltd. ..... 7,000 290,917
Nanno Construction Co. Ltd. ........ 12,000 13,398
NGK Spark Plug Co. ................. 24,000 244,785
Nichiei Co. Ltd. ................... 14,500 1,156,402
Nichiha Corp. ...................... 33,500 306,057
Nikon Corp. ........................ 56,000 545,857
Nintendo Co. Ltd. .................. 15,400 1,494,284
Nippon Broadcasting System ......... 18,000 720,957
Nippon Denwa Shisetsu .............. 4,000 13,824
Nippon Paper Industries Co. ........ 14,000 63,766
Nippon System Development .......... 33,200 1,029,685
Nippon Telegraph & Telephone
Corp. ............................ 206 1,591,777
Nippon Television Network
Corp. ............................ 820 241,967
Nireco ............................. 8,000 23,748
Nitta Corp. ........................ 31,000 176,907
Nitto Kohki Co. Ltd. ............... 18,700 154,107
Nomura Securities Co. .............. 8,000 69,827
Noritsu Koki Co. Ltd. .............. 9,700 210,589
Oie Sangyo Co. Ltd. ................ 13,000 55,295
Oriental Construction Co. .......... 1,800 6,922
Paris Miki, Inc. ................... 21,400 493,044
PS Corp. ........................... 18,900 72,016
Ricoh Elemex Corp. ................. 7,000 54,400
Rohm Co. Ltd. ...................... 12,000 1,094,196
Sankyo Co. Ltd. .................... 45,000 984,936
Santen Pharmaceutical Co. Ltd. ..... 48,000 922,995
Sanyo Engineering &
Construction Co. ................. 9,000 33,017
Sanyo Pax Co. Ltd. ................. 24,000 165,884
Sanyo Shinpan Finance Co. Ltd. ..... 4,600 167,125
Sato Corp. ......................... 44,900 795,747
Seven-Eleven Japan Co. Ltd. ........ 5,600 451,573
SHIMANO, INC. ...................... 33,000 852,415
Shizuoka Bank Ltd. ................. 36,000 445,016
SMC Corp. .......................... 8,400 671,405
Sodick Co.* ........................ 88,000 187,151
Sony Corp. ......................... 12,600 918,901
Sumitomo Metal Industries .......... 171,000 195,472
Sumitomo Realty &
Development Co. Ltd. ............. 104,000 338,219
Takefuji Corp. ..................... 60 4,386
Takihyo Co. Ltd. ................... 2,000 10,084
TDK Corp. .......................... 4,000 366,150
Toda Corp. ......................... 9,000 43,624
Toho Bank .......................... 39,000 161,737
Toho Titanium ...................... 37,000 203,607
</TABLE>
36
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Tokyo Broadcasting System, Inc. 69,000 $ 772,238
Tokyo Cathode Laboratory Co. ........ 8,200 55,514
Toso Co. Ltd. ....................... 18,000 59,814
Yamaichi Electronics Co. Ltd. ....... 12,000 194,595
Yamanouchi Pharmaceutical Co.
Ltd. .............................. 17,000 548,339
Yokogawa Electric Corp. ............. 46,000 228,268
------------
TOTAL JAPAN (17.1%) ............... 36,320,637
------------
MALAYSIA**
Guinness Anchor BHD+ ................ 30,000 21,105
Kumpulan Guthrie BHD+ ............... 26,000 11,731
Lingkaran Trans Kota Holdings
BHD+ .............................. 130,000 76,133
Malayan Banking BHD+ ................ 48,000 68,066
Metacorp BHD+ ....................... 90,000 48,066
Pernas International Hotels
Holdings BHD+ ..................... 280,000 50,018
Resorts World BHD+ .................. 20,000 16,133
RJ Reynolds BHD+ .................... 60,000 47,514
Sime Darby BHD+ ..................... 134,000 107,595
Star Publications BHD+ .............. 25,000 24,862
Talam Corp. BHD+ .................... 200,000 39,411
Tanjong PLC+ ........................ 100,000 99,447
UMW Holdings BHD+ ................... 150,000 110,497
------------
TOTAL MALAYSIA (0.3%) ............. 720,578
------------
MEXICO
Elamex S.A. de C.V.* ................ 10,000 36,250
Fomento Economico Mexico
ADR ............................... 20,000 532,500
Grupo Electra, S.A. de C.V. ......... 500,000 251,566
Grupo Industrial Saltillo SA
(B Shares) ........................ 236,000 588,927
Grupo Televisa S.A. (GDR)* .......... 40,000 987,500
Industrias CH S.A. (B Shares)* ...... 120,000 213,861
Kimberly-Clark de Mexico, S.A.
de CV ............................. 30,000 473,976
Panamerican Beverages, Inc. ......... 8,000 174,500
Sanluis Corporacion S.A. de C.V. 28,000 40,453
------------
TOTAL MEXICO (1.6%) ............... 3,299,533
------------
NETHERLANDS
Aegon N.V. .......................... 13,000 1,596,358
Akzo Nobel N.V. ..................... 23,000 1,047,180
ASR Verzekeringsgroep N.V. .......... 21,400 1,937,270
Content Beheer N.V.+ ................ 30,000 512,807
Elsevier N.V. ....................... 40,000 560,200
Fortis Amev N.V. .................... 15,000 1,242,878
Fugro N.V. .......................... 30,000 702,913
Hagemeyer N.V. ...................... 12,000 438,362
Hunter Douglas N.V. ................. 6,000 198,733
IHC Caland N.V. ..................... 15,000 623,036
ING Groep N.V. ...................... 24,000 1,463,337
KLM ................................. 12,400 375,057
Koninklijke Ahold NV ................ 15,000 554,343
Koninklijke Nedlloyd Groep N.V. 2,250 30,553
Koninklijke Numico N.V.+ ............ 8,000 381,277
Koninklijke Philips Electronics
N.V. .............................. 10,000 670,962
Nutreco Holding N.V. ................ 20,000 788,114
Royal Dutch Petroleum Co. ........... 9,948 495,307
Unique International N.V. ........... 10,000 228,979
Vedior N.V. ......................... 30,000 591,086
------------
TOTAL NETHERLANDS (6.8%) .......... 14,438,752
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
NEW ZEALAND
Restaurant Brands New Zealand
Ltd.+ ............................. 312,500 $ 177,710
Warehouse Group Ltd. ................ 84,300 272,986
------------
TOTAL NEW ZEALAND (0.2%) .......... 450,696
------------
NORWAY
Choice Hotels Scandinavia ASA+ 472,500 665,169
Frontline Ltd.* ..................... 97,905 186,775
Frontline Ltd.--Warrants
(expire 05/11/01)* ................ 57,060 0
Navia ASA* .......................... 88,000 193,351
Norsk Hydro ASA ..................... 1,100 37,194
Schibsted ASA ....................... 25,000 315,760
Sparebanken NOR ..................... 12,000 233,663
------------
TOTAL NORWAY (0.8%) ............... 1,631,912
------------
PERU (0.3%)
Telefonica del Peru S.A. (ADR) ...... 54,000 685,125
------------
POLAND (0.4%)
Telekomunikacja Polska S.A.
(GDR)* ............................ 155,000 790,500
------------
PORTUGAL
BPI-SGPS, SA ........................ 21,400 726,563
Cia de Seguros Imperio SA* .......... 134,000 1,092,227
Electricidade de Portugal SA ........ 40,000 881,076
Telecel Comunicacoes Pessoais
SA+ ............................... 12,200 2,494,975
------------
TOTAL PORTUGAL (2.4%) ............. 5,194,841
------------
RUSSIA (0.2%)
Global TeleSystems Group, Inc.* 8,000 446,000
------------
SINGAPORE
City Developments Ltd. .............. 43,000 186,333
GP Batteries International Ltd. ..... 140,000 298,667
Great Eastern Life Assurance
Co. ............................... 7,000 38,182
Singapore Land Ltd. ................. 70,000 155,273
Singapore Press Holdings Ltd. ....... 30,000 325,454
United Overseas Bank Ltd. ........... 40,000 256,970
------------
TOTAL SINGAPORE (0.6%) ............ 1,260,879
------------
SOUTH KOREA (0.1%)
SK Telecom Co. Ltd. (ADR) ........... 30,000 305,625
------------
SPAIN
Aldeasa SA .......................... 32,000 1,256,403
Bancaria de Espana SA ............... 10,000 258,584
Banco Bilbao Vizcaya SA ............. 14,643 229,248
Banco Central Hispanoamericano
SA ................................ 42,000 497,959
Banco Central Hispanoamericano
SA ................................ 48,000 569,097
Banco Santander SA .................. 6,936 137,627
Catalana Occidente SA+ .............. 43,200 1,124,683
Corporacion Mapfre .................. 34,000 921,053
Gas Y Electridad SA (Series 2) ...... 14,000 1,388,967
Hidroelectrica del Cantabrico ....... 3,372 186,490
Portland Valderrivas SA ............. 10,800 440,754
Repsol SA ........................... 10,000 532,648
Sociedad General de Aguas
de Barcelona SA--Rights* .......... 6,060 0
Tabacalera SA--A .................... 90,000 2,267,098
Telefonica de Espana ................ 20,000 887,982
Telefonica S.A.--Bonus Rights* ...... 400 355
</TABLE>
37
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
TelePizza SA* ..................... 40,000 $ 379,961
------------
TOTAL SPAIN (5.2%) .............. 11,078,909
------------
SWEDEN
Asticus AB* ....................... 40,000 392,799
Astra AB (A Shares) ............... 20,001 408,877
Autoliv, Inc.+ .................... 13,700 492,443
Castellum AB ...................... 68,900 748,936
Dahl International AB+ ............ 30,000 296,452
Ericsson LM (ADR) ................. 12,800 305,148
ForeningsSparbanken AB ............ 40,000 1,037,581
Frontec AB (B Shares)* ............ 134,000 574,351
Karlshamns AB+ .................... 33,367 247,293
NetCom Systems AB
(B Shares)*+ .................... 6,000 244,573
Scandic Hotels AB+ ................ 30,000 1,104,283
Skandia Forsakrings AB ............ 24,000 367,600
Skandinaviska Enskilda Banken
(Series A) ...................... 84,700 894,525
Swedish Match AB .................. 300,000 1,093,166
------------
TOTAL SWEDEN (3.9%) ............. 8,208,027
------------
SWITZERLAND
Barry Callebaut AG ................ 6,800 1,546,919
Ciba Specialty Chemicals AG ....... 4,000 335,399
Gretag Imaging Group* ............. 14,000 1,204,521
Mettler-Toledo International,
Inc.* ........................... 76,500 2,146,781
Nestle SA ......................... 400 872,038
Novartis AG ....................... 380 748,086
Roche Holding AG
Genussscheine ................... 60 733,212
Swisscom AG* ...................... 6,000 2,515,494
Tag Heuer International SA
(ADR) ........................... 35,000 249,375
UBS AG-Registered ................. 1,000 307,692
------------
TOTAL SWITZERLAND (5.0%) ........ 10,659,517
------------
THAILAND
CMIC Finance & Securities
Public Co. Ltd.* ................ 51,000 0
Nation Multimedia Group Public
Co. Ltd.* ....................... 130,000 41,128
Thai Engine Manufacturing
Public Co. Ltd.* ................ 70,000 17,524
------------
TOTAL THAILAND (0.0%) ........... 58,652
------------
UNITED KINGDOM
Amvescap PLC ...................... 80,000 620,612
BAA PLC ........................... 13,300 155,235
Bank of Scotland .................. 70,000 835,080
Barclays PLC ...................... 36,000 776,280
BG PLC ............................ 22,077 139,308
Bodycote International PLC ........ 80,000 1,094,806
BPB PLC ........................... 100,000 378,107
British Aerospace PLC ............. 90,000 762,953
British Airways PLC ............... 38,000 256,223
British Energy PLC ................ 60,000 686,333
British Petroleum Co. PLC ......... 29,367 438,536
British Sky Broadcasting Group
PLC ............................. 8,097 61,500
British Telecommunications PLC 35,150 529,572
Cadbury Schweppes PLC ............. 5,961 101,661
CGU PLC ........................... 6,381 99,906
Compass Group PLC ................. 170,000 1,947,439
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Cordiant Communications Group
PLC ............................. 200,000 $ 349,406
Diageo PLC ........................ 90,000 1,024,259
Dixons Group PLC .................. 100,000 1,406,775
EMI Group PLC ..................... 50,000 334,432
Energis PLC* ...................... 55,000 1,226,249
Filtronic Comtek PLC .............. 211,000 2,123,973
FKI PLC ........................... 150,000 334,432
Garban PLC* ....................... 2,590 9,868
GKN PLC ........................... 4,178 55,438
Glaxo Wellcome PLC ................ 23,220 798,958
Great Universal Stores PLC ........ 3,970 41,845
Harvey Nichols PLC+ ............... 40,000 93,175
House of Fraser PLC ............... 130,000 114,638
HSBC Holdings PLC ................. 10,000 252,903
Imperial Tobacco Group PLC ........ 30,000 321,454
Johnson Matthey PLC ............... 100,000 675,518
Kingfisher PLC .................... 8,168 88,404
Ladbroke Group PLC ................ 180,000 723,270
Land Securities PLC ............... 3,207 41,300
Legal & General Group PLC ......... 7,475 97,072
Lloyds TSB Group PLC .............. 34,379 489,069
LucasVarity PLC ................... 100,000 333,600
Marks & Spencer PLC ............... 17,109 117,354
MEPC PLC .......................... 57,826 384,852
Misys PLC ......................... 180,000 1,311,021
National Grid Group PLC ........... 100,000 798,226
National Power PLC ................ 70,000 603,308
Orange PLC* ....................... 120,000 1,394,629
Peninsular & Oriental Steam
Navigation Co. .................. 3,314 39,177
Powerscreen International PLC ..... 160,000 300,822
Prudential Corp. PLC .............. 8,019 121,082
Randgold Resources Ltd.
(GDR)*+ ......................... 30,300 75,750
Reed International PLC ............ 100,000 782,004
Rentokil Initial PLC .............. 140,000 1,055,206
Senior Engineering Group PLC ...... 180,000 344,415
Siebe PLC ......................... 120,000 473,196
Smith (W.H.) Group PLC ............ 54,000 428,571
Thistle Hotels PLC ................ 87,719 159,086
Thomson Travel Group PLC .......... 180,000 491,165
United News & Media PLC ........... 110,000 964,527
Vodafone Group PLC ................ 86,100 1,398,183
WPP Group PLC ..................... 200,000 1,217,098
Yule Catto & Company PLC .......... 162,079 660,699
------------
TOTAL UNITED KINGDOM (15.5%) 32,939,960
------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (90.6%)
(Cost $188,534,746) .............. 192,480,326
------------
PREFERRED STOCKS:
AUSTRALIA (0.1%)
Village Roadshow Ltd. ............. 145,000 181,252
------------
AUSTRIA (0.3%)
Bank Austria AG ................... 13,975 710,579
------------
FINLAND (0.7%)
Nokia Oyj (A Shares) .............. 12,000 1,459,124
------------
GERMANY (0.5%)
ProSieben Media AG ................ 21,000 1,005,581
------------
TOTAL PREFERRED STOCKS (1.6%)
(Cost $2,831,114) ................ 3,356,536
------------
</TABLE>
38
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (3.5%)
Federal Home Loan Mortgage
Corp.
4.7%, due 01/04/99 .................. $7,400,000 $ 7,397,102
------------
TOTAL SHORT-TERM DEBT SECURITIES (3.5%)
(Amortized Cost $7,397,102) ......... 7,397,102
------------
TOTAL INVESTMENTS (95.7%)
(Cost/Amortized Cost
$198,762,962) ...................... 203,233,964
OTHER ASSETS
LESS LIABILITIES (4.3%) ............ 9,076,004
------------
NET ASSETS (100.0%) .................. $212,309,968
============
</TABLE>
- --------------------------------------
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Equity Investments
<TABLE>
<S> <C>
Basic Materials ................. 3.5%
Business Services ............... 9.3
Capital Goods ................... 7.6
Consumer Cyclicals .............. 17.6
Consumer Non-Cyclicals .......... 15.0
Credit Sensitive ................ 27.6
Diversified ..................... 1.9
Energy .......................... 3.0
Technology ...................... 14.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Fair value securities.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $11,580,033 or
5.5% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
39
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (10.3%)
CBS Corp. .............................................................. 1,860,300 $ 60,924,825
Comcast Corp. (Class A) SPL ............................................ 3,692,800 216,721,200
Infinity Broadcasting Corp.
(Class A)* ........................................................... 2,100,300 57,495,713
King World Productions, Inc.* .......................................... 1,020,000 30,026,250
USA Networks, Inc.* .................................................... 2,934,600 97,208,625
-------------
462,376,613
-------------
PROFESSIONAL SERVICES (1.3%)
Century Business Services, Inc.* ....................................... 1,579,600 22,706,750
Young & Rubicam Inc.* .................................................. 1,186,800 38,422,650
-------------
61,129,400
-------------
TRUCKING, SHIPPING (1.1%)
Teekay Shipping Corp.+ ................................................. 2,629,300 49,463,706
-------------
TOTAL BUSINESS SERVICES (12.7%) 572,969,719
-------------
CAPITAL GOODS (1.9%)
MACHINERY
United Rentals, Inc.* .................................................. 2,569,300 85,108,062
-------------
CONSUMER CYCLICALS
AIRLINES (4.4%)
Continental Airlines, Inc.
(Class B)*+ .......................................................... 4,431,900 148,468,650
Northwest Airlines Corp.
(Class A)* ........................................................... 1,966,500 50,268,656
-------------
198,737,306
-------------
APPAREL, TEXTILE (6.8%)
Mohawk Industries, Inc.*+ .............................................. 3,766,800 158,441,025
Tommy Hilfiger Corp.*+ ................................................. 1,597,300 95,838,000
UNIFI, Inc. ............................................................ 2,592,100 50,707,956
-------------
304,986,981
-------------
AUTO RELATED (6.3%)
Circuit City Stores, Inc.- CarMax
Group*+ .............................................................. 6,359,700 34,580,869
Federal-Mogul Corp. .................................................... 510,000 30,345,000
Hertz Corp. (Class A) .................................................. 1,709,700 78,005,063
Republic Industries, Inc.* ............................................. 9,491,100 139,993,725
-------------
282,924,657
-------------
FOOD SERVICES, LODGING (2.7%)
Extended Stay America, Inc.* ........................................... 2,040,000 21,420,000
Florida Panthers Holdings, Inc.*+ 2,501,200 23,292,425
MeriStar Hospitality Corp. ............................................. 2,032,300 37,724,569
Starbucks Corp.* ....................................................... 668,900 37,542,012
-------------
119,979,006
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (1.7%)
Industrie Natuzzi Spa (ADR) ............................................ 3,047,600 75,809,050
-------------
LEISURE RELATED (6.5%)
Callaway Golf Co. ...................................................... 1,283,100 13,151,775
Mattel, Inc. ........................................................... 554,200 12,642,687
Premier Parks, Inc.*+ .................................................. 5,366,200 162,327,550
Royal Caribbean Cruises Ltd. ........................................... 2,872,700 106,289,900
-------------
294,411,912
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
RETAIL--GENERAL (9.3%)
Bed Bath & Beyond Inc.* ................................................ 955,400 $ 32,603,025
Gucci Group N.V. (New York
Registered Shares) ................................................... 631,700 30,716,413
Ross Stores, Inc. ...................................................... 981,700 38,654,438
Saks Inc.* ............................................................. 2,402,100 75,816,281
Tiffany & Co.+ ......................................................... 2,550,900 132,327,937
TJX Cos., Inc. ......................................................... 1,646,100 47,736,900
Venator Group, Inc.*+ .................................................. 9,511,600 61,230,925
-------------
419,085,919
-------------
TOTAL CONSUMER CYCLICALS (37.7%)
1,695,934,831
-------------
CONSUMER NONCYCLICALS
DRUGS (1.1%)
MedImmune, Inc.*+ ...................................................... 476,500 47,381,969
-------------
HOSPITAL SUPPLIES & SERVICES (7.6%)
Biomet, Inc. ........................................................... 302,750 12,185,687
Columbia/HCA Healthcare Corp. 3,015,700 74,638,575
Guidant Corp. .......................................................... 314,500 34,673,625
Health Management Associates,
Inc. (Class A)* ...................................................... 1,346,200 29,111,575
HEALTHSOUTH Corp.* ..................................................... 10,919,700 168,572,869
St. Jude Medical, Inc.* ................................................ 872,800 24,165,650
-------------
343,347,981
-------------
RETAIL--FOOD (0.8%)
Whole Foods Market, Inc.* .............................................. 750,800 36,319,950
-------------
TOTAL CONSUMER NONCYCLICALS (9.5%)
427,049,900
-------------
CREDIT SENSITIVE
BANKS (1.4%)
GreenPoint Financial Corp. ............................................. 1,760,000 61,820,000
-------------
FINANCIAL SERVICES (4.9%)
Capital One Financial Corp. ............................................ 382,000 43,930,000
Edwards (A.G.), Inc. ................................................... 1,224,000 45,594,000
Merrill Lynch & Co., Inc. .............................................. 784,500 52,365,375
Newcourt Credit Group, Inc. ............................................ 1,020,000 35,636,250
Paine Webber Group, Inc. ............................................... 1,122,000 43,337,250
-------------
220,862,875
-------------
INSURANCE (6.4%)
Ace Ltd. ............................................................... 886,800 30,539,175
AFLAC, Inc. ............................................................ 1,122,000 49,368,000
CNA Financial Corp.* ................................................... 5,140,200 206,893,050
-------------
286,800,225
-------------
REAL ESTATE (4.7%)
Boston Properties, Inc. ................................................ 1,802,700 54,982,350
Crescent Real Estate Equities
Co. .................................................................. 1,956,700 45,004,100
Equity Office Properties Trust ......................................... 1,788,900 42,933,600
Vornado Realty Trust ................................................... 2,109,900 71,209,125
-------------
214,129,175
-------------
TOTAL CREDIT SENSITIVE (17.4%). 783,612,275
-------------
ENERGY
OIL--SUPPLIES & CONSTRUCTION (1.0%)
Diamond Offshore Drilling, Inc. ........................................ 1,919,700 45,472,894
-------------
RAILROADS (1.1%)
Kansas City Southern Industries,
Inc. ................................................................. 1,027,100 50,520,481
-------------
TOTAL ENERGY (2.1%) .................................................. 95,993,375
-------------
</TABLE>
40
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE AGGRESSIVE STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ----------------
<S> <C> <C>
TECHNOLOGY
ELECTRONICS (7.7%)
Altera Corp.* ..................... 705,000 $ 42,916,875
Citrix Systems, Inc.* ............. 307,900 29,885,544
Keane, Inc.* ...................... 567,500 22,664,531
Network Associates, Inc.* ......... 1,062,700 70,403,875
Parametric Technology Corp.* ...... 1,742,600 28,317,250
Sanmina Corp.* .................... 918,900 57,431,250
Seagate Technology, Inc.* ......... 557,500 16,864,375
Sterling Commerce, Inc.* .......... 846,300 38,083,500
Synopsys, Inc.* ................... 788,100 42,754,425
--------------
349,321,625
--------------
OFFICE EQUIPMENT SERVICES (2.0%)
Cadence Design Systems, Inc.* ..... 770,700 22,928,325
Comverse Technology, Inc.*+ ....... 930,300 66,051,300
--------------
88,979,625
--------------
TELECOMMUNICATIONS (5.5%)
Amdocs Ltd.* ...................... 832,500 14,256,563
American Satellite Network--
Warrants (expire 07/01/99)* ..... 49,450 0
Global TeleSystems Group, Inc.*. 1,016,300 56,658,725
Millicom International
Cellular SA*+ ................... 2,459,700 85,782,037
Nextel Communications, Inc.
(Class A)* ...................... 1,964,000 46,399,500
WinStar Communications, Inc.* ..... 1,105,600 43,118,400
--------------
246,215,225
--------------
TOTAL TECHNOLOGY (15.2%) ........ 684,516,475
--------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (96.5%)
(Cost $4,017,808,737) ........... 4,345,184,637
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
BANKERS' ACCEPTANCE (0.9%)
Chase Manhattan Corp.
5.11%, due 02/19/99 ............... $ 40,000,000 $ 39,723,967
--------------
COMMERCIAL PAPER
Household Finance Corp.
6.06%, due 01/08/99 ............... 30,000,000 29,964,708
Pfizer Inc.
5.25%, due 02/12/99 ............... 25,000,000 24,847,750
--------------
TOTAL COMMERCIAL PAPER (1.2%) 54,812,458
--------------
TIME DEPOSITS
Chase Manhattan Corp.
4.5%, due 01/04/99 ................ 95,800,000 95,800,000
First National Bank of Chicago
4.875%, due 01/04/99 .............. 100,000,000 100,000,000
--------------
TOTAL TIME DEPOSITS (4.4%) ........ 195,800,000
--------------
TOTAL SHORT-TERM DEBT SECURITIES (6.5%)
(Amortized Cost $290,336,425). 290,336,425
--------------
TOTAL INVESTMENTS (103.0%)
(Cost/Amortized Cost $4,308,145,162) 4,635,521,062
OTHER ASSETS
LESS LIABILITIES (--3.0%) ......... (134,832,027)
--------------
NET ASSETS (100.0%) ................. $4,500,689,035
==============
</TABLE>
<PAGE>
- ----------
* Non-income producing.
+ Affiliated company as defined under the Investment Company Act of 1940
(See Note 6).
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
41
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS
CHEMICAL--SPECIALTY (0.6%)
Crompton & Knowles Corp. ............ 87,200 $ 1,803,950
------------
METALS & MINING (1.6%)
Bethlehem Steel Corp.* .............. 303,900 2,545,162
Gibraltar Steel Corp.* .............. 111,300 2,532,075
------------
5,077,237
------------
STEEL (0.7%)
WHX Corp.* .......................... 211,800 2,131,238
------------
TOTAL BASIC MATERIALS (2.9%) ... ... 9,012,425
------------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Superior Services, Inc.* ............ 76,400 1,532,775
------------
PRINTING, PUBLISHING &
BROADCASTING (2.6%)
Mail-Well, Inc.* .................... 76,000 869,250
Sinclair Broadcast Group, Inc.* ..... 202,700 3,965,319
Young Broadcasting, Inc.
(Class A)* ........................ 72,500 3,035,937
------------
7,870,506
------------
PROFESSIONAL SERVICES (18.7%)
Building One Services Corp.* ........ 212,900 4,444,287
Carematrix Corp.* ................... 210,400 6,443,500
Cornell Corrections, Inc.* .......... 156,500 2,973,500
Data Processing Resources
Corp.* ............................ 188,800 5,522,400
DoubleClick, Inc.* .................. 8,300 378,169
Equity Corp. International* ......... 102,400 2,720,000
Global Imaging Systems, Inc.* ....... 154,400 3,744,200
Ha-Lo Industries, Inc.* ............. 184,700 6,949,337
ITT Educational Services, Inc.* ..... 51,300 1,744,200
Metamor Worldwide, Inc.* ............ 274,100 6,852,500
Preview Travel, Inc.* ............... 88,900 1,639,094
Preview Travel, Inc.--Rights
(expire 10/28/08)* ................ 99,400 0
Sykes Enterprises, Inc.* ............ 114,200 3,483,100
Sylvan Learning Systems, Inc.* ...... 84,050 2,563,525
TeleTech Holdings, Inc.* ............ 247,400 2,535,850
Tier Technologies, Inc. (Class B)* 155,100 2,675,475
True North Communications,
Inc. .............................. 130,000 3,493,750
True North Communications, Inc.
--Rights (expire 11/30/08)* ....... 125,100 0
------------
58,162,887
------------
TRUCKING, SHIPPING (0.6%)
Knightsbridge Tankers Ltd. .......... 42,100 876,206
OMI Corp.* .......................... 328,600 1,067,950
------------
1,944,156
------------
TOTAL BUSINESS SERVICES (22.4%) 69,510,324
------------
CAPITAL GOODS
MACHINERY (1.3%)
PRI Automation, Inc.* ............... 13,700 356,200
Rental Service Corp.* ............... 53,000 831,437
United Rentals, Inc.* ............... 91,400 3,027,625
------------
TOTAL CAPITAL GOODS (1.3%) ..... ... 4,215,262
------------
CONSUMER CYCLICALS
AIRLINES (2.8%)
Alaska Air Group, Inc.* ............. 76,600 3,389,550
Atlantic Coast Airlines
Holdings* ......................... 129,000 3,225,000
Mesa Air Group, Inc.* ............... 259,000 2,023,438
------------
8,637,988
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
APPAREL, TEXTILE (4.7%)
Mohawk Industries, Inc.* ............ 193,100 $ 8,122,269
Stage Stores, Inc.* ................. 209,100 1,960,312
Stage Stores, Inc.--Rights
(expire 11/10/08)* ................ 195,700 0
Tommy Hilfiger Corp.* ............... 56,600 3,396,000
Wolverine World Wide, Inc. .......... 94,500 1,252,125
------------
14,730,706
------------
AUTO RELATED (2.1%)
Avis Rent A Car, Inc.* .............. 81,200 1,964,025
Budget Group, Inc. (Class A)* ....... 195,000 3,095,625
Dollar Thrifty Automotive
Group, Inc.* ...................... 113,200 1,457,450
------------
6,517,100
------------
FOOD SERVICES, LODGING (3.1%)
CKE Restaurants, Inc. ............... 107,250 3,157,172
Innkeepers USA Trust ................ 250,900 2,963,756
MeriStar Hospitality Corp. .......... 189,853 3,524,147
------------
9,645,075
------------
HOUSEHOLD FURNITURE, APPLIANCES (2.2%)
Furniture Brands International,
Inc.* ............................. 144,100 3,926,725
Industrie Natuzzi Spa (ADR) ......... 123,000 3,059,625
------------
6,986,350
------------
LEISURE RELATED (5.1%)
Bally Total Fitness Holding
Corp.* ............................ 159,300 3,962,587
Interplay Entertainment Corp.* ...... 105,900 188,634
Premier Parks, Inc.* ................ 186,100 5,629,525
SFX Entertainment, Inc.
(Class A)* ........................ 78,600 4,313,175
THQ, Inc.* .......................... 59,650 1,670,200
------------
15,764,121
------------
RETAIL--GENERAL (5.6%)
American Eagle Outfitters, Inc.* 18,800 1,252,550
BJ's Wholesale Club, Inc.* .......... 60,900 2,820,431
Hines Horticulture, Inc.* ........... 58,700 520,963
Men's Wearhouse, Inc.* .............. 122,900 3,902,075
PETsMART, Inc.* ..................... 347,500 3,822,500
School Specialty, Inc.* ............. 139,600 2,983,950
Trans World Entertainment
Corp.* ............................ 105,900 2,018,719
------------
17,321,188
------------
TOTAL CONSUMER CYCLICALS (25.6%)
79,602,528
------------
CONSUMER NONCYCLICALS
DRUGS (7.7%)
Anesta Corp.* ....................... 51,700 1,376,513
Chattem, Inc.* ...................... 24,100 1,153,788
Creative BioMolecules, Inc.* ........ 372,200 1,372,488
Geltex Pharmaceuticals, Inc.* ....... 138,700 3,138,088
Jones Medical Industries, Inc. ...... 153,700 5,610,050
Medicis Pharmaceutical Corp.
(Class A)* ........................ 117,300 6,994,012
MedImmune, Inc.* .................... 41,900 4,166,431
------------
23,811,370
------------
HOSPITAL SUPPLIES & SERVICES (2.2%)
Apria Healthcare Group, Inc.* ....... 272,200 2,432,787
Coventry Health Care, Inc.* ......... 29,400 259,087
Mid Atlantic Medical Services,
Inc.* ............................. 140,700 1,380,619
PAREXEL International Corp.* ........ 117,400 2,935,000
------------
7,007,493
------------
TOTAL CONSUMER NONCYCLICALS (9.9%) 30,818,863
------------
</TABLE>
42
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE SMALL CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------- ---------------
<S> <C> <C>
CREDIT SENSITIVE
BANKS (0.7%)
Peoples Heritage Financial
Group, Inc. ....................... 107,300 $ 2,146,000
------------
FINANCIAL SERVICES (3.3%)
Affiliated Managers Group, Inc.* 43,100 1,287,613
Allied Capital Corp. ................ 141,400 2,447,987
Hambrecht & Quist Group* ............ 84,400 1,914,825
Healthcare Financial Partners,
Inc.* ............................. 81,400 3,245,825
Medaphis Corp.* ..................... 433,200 1,421,437
------------
10,317,687
------------
INSURANCE (2.1%)
Annuity and Life Re (Holdings)
Ltd. .............................. 129,400 3,493,800
Executive Risk, Inc. ................ 52,800 2,900,700
------------
6,394,500
------------
REAL ESTATE (1.9%)
Glenborough Realty Trust, Inc. ...... 155,000 3,158,125
Macerich Co. ........................ 106,200 2,721,375
------------
5,879,500
------------
TOTAL CREDIT SENSITIVE (8.0%) ...... 24,737,687
------------
ENERGY
COAL & GAS PIPELINES (0.5%)
Swift Energy Co.* ................... 180,800 1,333,400
------------
OIL--DOMESTIC (0.9%)
Oryx Energy Co.* .................... 212,900 2,860,844
------------
OIL--SUPPLIES & CONSTRUCTION (0.7%)
Oceaneering International, Inc.* .... 98,100 1,471,500
Parker Drilling Co.* ................ 232,400 740,775
------------
2,212,275
------------
TOTAL ENERGY (2.1%) ................ 6,406,519
------------
TECHNOLOGY
ELECTRONICS (6.6%)
Amkor Technologies, Inc.* ........... 149,900 1,620,794
Cypress Semiconductor Corp.* ........ 95,600 794,675
Flextronics International Ltd.* ..... 33,800 2,894,125
Harbinger Corp.* .................... 381,500 3,052,000
IDT Corp.* .......................... 85,800 1,319,175
Komag, Inc.* ........................ 152,500 1,582,188
Semtech Corp.* ...................... 85,600 3,070,900
SMART Modular Technologies,
Inc.* ............................. 62,600 1,737,150
Tekelec* ............................ 127,100 2,105,094
USWeb Corp.* ........................ 87,750 2,314,406
------------
20,490,507
------------
OFFICE EQUIPMENT (2.8%)
Discreet Logic, Inc.* ............... 96,100 1,813,888
Platinum Technology, Inc.* .......... 160,400 3,067,650
Sterling Software, Inc.* ............ 135,900 3,677,794
------------
8,559,332
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------- ---------------
<S> <C> <C>
OFFICE EQUIPMENT SERVICES (4.7%)
Comverse Technology, Inc.* .......... 85,600 $ 6,077,600
Hutchinson Technology, Inc.* ........ 55,800 1,987,875
Oak Technology, Inc.* ............... 299,200 1,047,200
Platinum Software Corp.* ............ 221,300 2,835,406
QuadraMed Corp.* .................... 85,500 1,752,750
Saville Systems PLC* ................ 53,800 1,022,200
------------
14,723,031
------------
TELECOMMUNICATIONS (6.1%)
GST Telecommunications, Inc.* ....... 204,300 1,340,719
ICG Communications, Inc.* ........... 142,800 3,070,200
Level One Communications,
Inc.* ............................. 58,800 2,087,400
MetroNet Communications Corp.
(Class B)* ........................ 101,600 3,403,600
Millicom International Cellular
SA* ............................... 71,500 2,493,562
RELTEC Corp.* ....................... 68,300 1,515,406
Sapient Corp.* ...................... 7,900 442,400
SkyTel Communications, Inc.* ........ 58,400 1,292,100
WinStar Communications, Inc.* ....... 83,100 3,240,900
------------
18,886,287
------------
TOTAL TECHNOLOGY (20.2%) ...... .... 62,659,157
------------
DIVERSIFIED (0.6%)
MISCELLANEOUS
Kroll-O'Gara Co.* ................... 48,400 1,908,775
------------
TOTAL COMMON STOCKS (93.0%)
(Cost $276,839,866) ................ 288,871,540
------------
PRINCIPAL
AMOUNT
--------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
4.7%, due 01/04/99 ................. $23,900,000 23,890,639
5.1%, due 01/14/99 ................. 10,000,000 9,981,656
------------
TOTAL U.S. GOVERNMENT
AGENCIES (10.9%) ................. 33,872,295
------------
TOTAL SHORT-TERM DEBT
SECURITIES (10.9%)
(Amortized Cost $33,872,295)........ 33,872,295
------------
TOTAL INVESTMENTS (103.9%)
(Cost/Amortized Cost
$310,712,161)...................... 322,743,835
OTHER ASSETS
LESS LIABILITIES (--3.9%) ......... (12,129,490)
------------
NET ASSETS (100.0%) ................. $310,614,345
============
</TABLE>
- ----------
* Non-income producing.
Glossary:
ADR--American Depository Receipt
See Notes to Financial Statements.
43
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
COMMON STOCKS AND
OTHER INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.2%)
Akzo Nobel N.V. ..................... 2,500 $ 113,824
Bayer AG ............................ 4,000 167,896
Ciba Specialty Chemicals AG ......... 400 33,540
Georgia Gulf Corp. .................. 22,000 353,375
Hitachi Chemical Co. Ltd. ........... 15,000 112,982
Johnson Matthey PLC ................. 5,000 33,776
Nippon Chemi-Con Corp. .............. 6,000 19,566
Toagosei Co. Ltd. ................... 15,000 28,179
---------
863,138
---------
CHEMICALS--SPECIALTY (0.2%)
Great Lakes Chemical Corp. .......... 8,200 328,000
NGK Insulators ...................... 10,000 129,110
Solutia Inc. ........................ 10,000 223,750
---------
680,860
---------
METALS & MINING (0.1%)
Stillwater Mining Co.* .............. 7,000 287,000
Toho Titanium ....................... 1,000 5,503
---------
292,503
---------
PAPER (0.1%)
Buhrmann N.V. ....................... 4,800 85,883
Mayr-Melnhof Karton AG .............. 883 41,268
UPM-Kymmene Oyj ..................... 2,810 78,255
---------
205,406
---------
STEEL (0.0%)
Koninklijke Hoogovens N.V. .......... 2,000 55,381
NatSteel Ltd. ....................... 25,000 27,424
Pohang Iron & Steel Co. Ltd.
(ADR) ............................. 2,000 33,750
---------
116,555
---------
TOTAL BASIC MATERIALS (0.6%) ....... 2,158,462
---------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.5%)
Republic Services, Inc.
(Class A)* ........................ 25,500 470,156
Waste Management, Inc. .............. 35,245 1,643,298
---------
2,113,454
---------
PRINTING, PUBLISHING &
BROADCASTING (1.7%)
CBS Corp. ........................... 76,000 2,489,000
Comcast Corp. (Class A) SPL ......... 5,000 293,438
Fox Entertainment Group, Inc.
(Class A)* ........................ 14,600 367,737
Grupo Televisa S.A. (GDR)* .......... 2,800 69,125
Liberty Media Group (Class A)* 25,550 1,176,897
MediaOne Group, Inc.* ............... 10,000 470,000
New Straits Times Press BHD ......... 8,000 3,934
Reed International PLC .............. 6,000 46,920
Seat Pagine Gialle Spa* ............. 300,000 283,036
Tele-Communications, Inc.
(Class A)* ........................ 14,500 802,031
Tokyo Broadcasting System, Inc. 3,000 33,576
United News & Media PLC ............. 5,000 43,842
USA Networks, Inc.* ................. 1,500 49,688
Viacom, Inc. (Class B)* ............. 4,500 333,000
---------
6,462,224
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
PROFESSIONAL SERVICES (0.2%)
Cordiant Communications Group
PLC ............................... 20,000 $ 34,940
Marlborough International PLC* 5,700 18,227
Meitec Corp. ........................ 1,000 24,989
Nielsen Media Research, Inc. ........ 25,000 450,000
Vedior N.V. ......................... 690 13,595
WPP Group PLC ....................... 12,000 73,026
---------
614,777
---------
TRUCKING, SHIPPING (0.1%)
Bergesen Dy ASA (A Shares) .......... 5,380 64,412
Frontline Ltd.* ..................... 6,527 12,452
Frontline Ltd.--Warrants (expire
05/11/01)* ........................ 3,804 0
Irish Continental Group PLC ......... 4,000 47,296
Knightsbridge Tankers Ltd. .......... 6,800 141,525
OMI Corp.* .......................... 53,100 172,575
---------
438,260
---------
TOTAL BUSINESS SERVICES (2.5%) 9,628,715
---------
CAPITAL GOODS
AEROSPACE (0.1%)
British Aerospace PLC ............... 10,000 84,773
Loral Space & Communications* 7,000 124,687
Senior Engineering Group PLC ........ 16,000 30,615
---------
240,075
---------
BUILDING & CONSTRUCTION (0.1%)
ABB AG .............................. 40 46,956
Beazer Group PLC .................... 21,000 53,459
Bouygues ............................ 600 123,660
Daito Trust Construction Co.
Ltd. .............................. 200 1,735
Groupe GTM .......................... 1,116 115,803
National House Industrial Co.
Ltd. .............................. 7,000 59,610
Technip SA .......................... 1,075 101,163
Toda Corp. .......................... 1,000 4,847
---------
507,233
---------
BUILDING MATERIALS & FOREST
PRODUCTS (0.6%)
BPB PLC ............................. 12,000 45,373
Fujikura Ltd. ....................... 3,000 16,110
Holderbank Financiere Glarus
AG--B ............................. 120 142,267
Lafarge SA .......................... 800 76,000
Louisiana-Pacific Corp. ............. 25,000 457,812
Martin Marietta Materials, Inc. ..... 19,700 1,225,094
Matsushita Electric Works Ltd. ...... 11,000 112,583
Nichiha Corp. ....................... 1,100 10,050
Rugby Group PLC ..................... 58,160 89,995
Unidare PLC ......................... 30,000 78,083
---------
2,253,367
---------
ELECTRICAL EQUIPMENT (0.8%)
Daikin Industries Ltd. .............. 14,000 138,946
General Electric Co. ................ 26,000 2,653,625
Johnson Electric Holdings Ltd. ...... 52,000 133,570
Legrand SA .......................... 425 112,608
Schneider SA ........................ 1,000 60,649
Sumitomo Electric Industries ........ 7,000 78,839
---------
3,178,237
---------
</TABLE>
44
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
MACHINERY (0.8%)
AlliedSignal, Inc. .................. 14,300 $ 633,669
Bodycote International PLC .......... 5,000 68,426
FKI PLC ............................. 10,000 22,296
Fujitec Co. Ltd. .................... 9,000 58,059
IHC Caland N.V. ..................... 1,600 66,457
Keyence Corp. ....................... 100 12,317
KSB AG .............................. 300 50,945
Legris Industries SA ................ 1,990 97,515
Nitta Corp. ......................... 1,000 5,707
Nitto Kohki Co. Ltd. ................ 500 4,121
Schindler Holding AG
Participating Certificate ......... 102 163,617
Schindler Holding AG Registered 50 85,308
Siebe PLC ........................... 24,000 94,639
SMC Corp. ........................... 800 63,943
Stork N.V. .......................... 2,000 45,689
TI Group PLC ........................ 14,014 75,489
United Technologies Corp. ........... 15,700 1,707,375
Valmet Oyj .......................... 3,600 48,010
Vestas Wind Systems A/S* ............ 370 19,824
----------
3,323,406
----------
TOTAL CAPITAL GOODS (2.4%) ......... 9,502,318
----------
CONSUMER CYCLICALS
AIRLINES (0.0%)
KLM ................................. 1,600 48,395
Virgin Express Holdings PLC
(ADR)* ............................ 11,500 92,000
----------
140,395
----------
APPAREL, TEXTILE (0.0%)
Carli Gry International A/S+ ........ 400 24,134
Onward Kashiyama Co. Ltd. ........... 8,000 107,612
----------
131,746
----------
AUTO RELATED (0.1%)
Continental AG ...................... 5,500 152,805
Minebea Co. Ltd. .................... 3,000 34,399
NGK Spark Plug Co. .................. 2,000 20,399
Sumitomo Rubber Industries, Inc. 13,000 62,091
----------
269,694
----------
AUTOS & TRUCKS (0.0%)
Bajaj Auto Ltd. (GDR) ............... 750 11,344
Honda Motor Co. Ltd. ................ 2,000 65,751
Volkswagen AG ....................... 1,000 80,888
----------
157,983
----------
FOOD SERVICES, LODGING (0.1%)
Accor SA ............................ 300 64,943
Choice Hotels Scandinavia ASA+ 13,500 19,005
Compass Group PLC ................... 10,000 114,555
Sanyo Pax Co. Ltd. .................. 1,000 6,912
----------
205,415
----------
HOUSEHOLD FURNITURE, APPLIANCES (0.3%)
Aiwa Co. Ltd. ....................... 1,000 26,407
Fisher & Paykel Industries Ltd. ..... 10,000 36,069
Hunter Douglas N.V. ................. 2,182 72,272
Industrie Natuzzi Spa (ADR) ......... 500 12,437
Koninklijke Philips Electronics
N.V. .............................. 600 40,258
Rubbermaid, Inc. .................... 23,700 745,069
Sony Corp. .......................... 1,100 80,222
----------
1,012,734
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
LEISURE RELATED (1.3%)
Amer Group Ltd.* .................... 2,000 $ 20,671
Berjaya Sports Toto BHD ............. 16,000 13,967
Canal Plus .......................... 200 54,567
Carnival Corp. (Class A) ............ 26,800 1,286,400
Cendant Corp.* ...................... 33,600 640,500
Cyrk, Inc.* ......................... 10,600 79,500
Disney (Walt) Co. ................... 11,600 348,000
Granada Group PLC ................... 9,900 175,015
Harley-Davidson, Inc. ............... 31,500 1,492,313
Ladbroke Group PLC .................. 25,000 100,454
MGM Grand, Inc.* .................... 17,000 461,125
Mirage Resorts, Inc.* ............... 19,000 283,812
Nintendo Co. Ltd. ................... 1,200 116,438
Nippon Broadcasting System .......... 1,000 40,053
SHIMANO, INC. ....................... 1,000 25,831
Thomson Travel Group PLC ............ 22,000 60,031
VTech Holdings Ltd. ................. 10,000 43,628
----------
5,242,305
----------
PHOTO & OPTICAL (0.1%)
Essilor International ............... 100 39,359
Fuji Photo Film Co. ................. 3,000 111,653
Gretag Imaging Group* ............... 1,000 86,037
----------
237,049
----------
RETAIL--GENERAL (2.0%)
Aldeasa SA .......................... 2,600 102,083
BAA PLC ............................. 12,939 151,022
Boots Co. PLC ....................... 8,400 143,047
Carrefour ........................... 50 37,740
Circuit City Stores-Circuit City
Group ............................. 22,400 1,118,600
Dixons Group PLC .................... 4,100 57,678
Genesis Direct, Inc.* ............... 9,000 70,312
Home Depot, Inc. .................... 13,500 826,031
Japan Airport Terminal Co. Ltd. 6,000 36,952
Kingfisher PLC ...................... 17,282 187,048
Kohl's Corp.* ....................... 17,800 1,093,588
Koninklijke Ahold NV ................ 1,000 36,956
Limited, Inc. ....................... 48,500 1,412,563
Paris Miki, Inc. .................... 1,100 25,343
Sato Corp. .......................... 2,000 35,445
Smith (W.H.) Group PLC .............. 1,800 14,286
Tandy Corp. ......................... 18,000 741,375
Wal-Mart Stores, Inc. ............... 19,000 1,547,312
----------
7,637,381
----------
TOTAL CONSUMER CYCLICALS (3.9%) 15,034,702
----------
CONSUMER NONCYCLICALS
BEVERAGES (0.6%)
Coca-Cola Co. ....................... 18,400 1,230,500
Coca-Cola Enterprises, Inc. ......... 27,500 983,125
Diageo PLC .......................... 6,000 68,284
Louis Dreyfus Citrus ................ 1,000 25,065
Mercian Corp. ....................... 4,000 16,340
Scottish & Newcastle PLC ............ 5,000 58,068
Whitbread PLC ....................... 5,000 64,016
----------
2,445,398
----------
CONTAINERS (0.0%)
Schmalbach Lubeca AG ................ 880 121,452
----------
</TABLE>
45
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
DRUGS (2.0%)
Bristol-Myers Squibb Co. ........... 12,500 $1,672,656
Daiichi Pharmaceutical Co. ......... 8,000 135,330
Dura Pharmaceuticals, Inc.* ........ 20,000 303,750
Forest Laboratories, Inc.
(Class A)* ....................... 8,500 452,094
Merck KGAA ......................... 2,100 94,509
Mylan Labs Inc. .................... 13,000 409,500
Novartis AG ........................ 40 78,746
Orion-Yhtyma Oy (B Shares) ......... 4,500 108,022
Pfizer, Inc. ....................... 14,000 1,756,125
Sankyo Co. Ltd. .................... 1,000 21,888
Sanofi SA .......................... 800 131,676
Santen Pharmaceutical Co. Ltd. ..... 5,000 96,145
Schering Plough Corp. .............. 40,600 2,243,150
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 2,000 64,510
----------
7,568,101
----------
FOODS (0.9%)
Barry Callebaut AG ................. 560 127,393
Campbell Soup Co. .................. 16,280 895,400
Huhtamaki Oy Series I .............. 1,300 49,461
Nestle SA .......................... 131 285,593
Nutreco Holding N.V. ............... 500 19,703
Orkla ASA .......................... 3,720 55,550
Parmalat Finanziaria Spa ........... 12,000 22,933
Rite Aid Corp. ..................... 20,500 1,016,031
Tyson Foods, Inc. (Class A) ........ 38,180 811,325
----------
3,283,389
----------
HOSPITAL SUPPLIES & SERVICES (1.2%)
Columbia/HCA Healthcare Corp. 63,500 1,571,625
Medtronic, Inc. .................... 25,000 1,856,250
PT Tempo Scan Pacific* ............. 23,000 1,222
Sun International Hotels Ltd.* ..... 10,000 454,375
Tenet Healthcare Corp.* ............ 26,100 685,125
----------
4,568,597
----------
RETAIL--FOOD (0.5%)
Delhaize-Le Lion SA ................ 980 86,179
Familymart Co. ..................... 1,500 74,967
Food Lion, Inc. (Class A) .......... 32,900 349,562
Kroger Co.* ........................ 23,700 1,433,850
----------
1,944,558
----------
SOAPS & TOILETRIES (0.7%)
Avon Products, Inc. ................ 30,560 1,352,280
Estee Lauder Companies
(Class A) ........................ 7,600 649,800
Gillette Co. ....................... 15,350 741,597
Kao Corp. .......................... 6,000 135,578
----------
2,879,255
----------
TOBACCO (1.0%)
Austria Tabakwerke AG .............. 2,300 176,342
Japan Tobacco, Inc. ................ 18 180,239
Philip Morris Cos., Inc. ........... 57,400 3,070,900
Seita .............................. 2,500 156,544
Swedish Match AB ................... 17,200 62,675
Tabacalera SA-A .................... 7,400 186,406
----------
3,833,106
----------
TOTAL CONSUMER NONCYCLICALS (6.9%) 26,643,856
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
CREDIT SENSITIVE
BANKS (2.1%)
Allied Irish Bank .................. 20,000 $ 356,727
Banca Nazionale del Lavoro
(BNL)* ........................... 19,900 59,513
Bancaria de Espana SA .............. 1,000 25,858
Banco Bilbao Vizcaya SA ............ 12,000 187,869
Banco Central Hispanoamericano
SA ............................... 6,000 71,137
Banco Santander SA ................. 5,940 117,864
Bangkok Bank Public Co. Ltd.* ...... 2,000 4,127
Bank Austria AG .................... 1,050 53,389
Bank of Ireland .................... 10,000 222,351
Bank of Tokyo-Mitsubishi Ltd. ...... 2,000 20,736
BankAmerica Corp. .................. 40,176 2,415,582
Banque Nationale de Paris .......... 1,500 123,499
Barclays PLC ....................... 2,000 43,127
Chase Manhattan Corp. .............. 6,000 408,375
Citigroup, Inc. .................... 51,600 2,554,200
Dao Heng Bank Group Ltd. ........... 3,000 9,274
Den Norske Bank ASA ................ 4,000 13,841
Erste Bank Der
Oesterreichischen Sparkassen
AG ............................... 740 39,602
ForeningsSparbanken AB ............. 1,800 46,691
Istituto Bancario San Paolo di
Torino Spa ....................... 9,823 173,469
National Bank of Canada ............ 3,000 48,406
Nordbanken Holding AB .............. 2,000 12,846
PT Bank Dagang Nasional
Indonesia Tbk* ................... 136,000 1,275
Seventy-Seven Bank Co. Ltd. ........ 11,000 110,146
Shizuoka Bank Ltd. ................. 3,000 37,085
Skandinaviska Enskilda Banken
(Series A) ....................... 5,400 57,030
Societe Generale ................... 300 48,573
State Bank of India (GDR)+ ......... 2,700 22,613
Suncorp-Metway Ltd. ................ 6,571 30,584
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ...... 375 51
Toho Bank .......................... 1,000 4,147
Unicredito Italiano Spa ............ 17,400 103,074
Wells Fargo Co. .................... 17,800 710,887
Wing Hang Bank Ltd. ................ 18,000 44,842
Yamaguchi Bank ..................... 7,000 66,123
----------
8,244,913
----------
FINANCIAL SERVICES (1.8%)
Aiful Corp. ........................ 2,100 127,656
Associates First Capital Corp.
(Class A) ........................ 20,000 847,500
CMAC Investment Corp. .............. 11,300 519,094
Credit Saison Co. .................. 2,600 64,165
Daiwa Securities Co. Ltd. .......... 2,000 6,841
Garban PLC* ........................ 367 1,397
Household International, Inc. ...... 37,900 1,501,787
MBNA Corp. ......................... 79,200 1,975,050
Merrill Lynch & Co., Inc. .......... 8,100 540,675
Morgan Stanley Dean Witter &
Co. .............................. 16,100 1,143,100
Nichiei Co. Ltd. ................... 400 31,901
</TABLE>
46
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Peregrine Investment Holdings
Ltd.* ................................................................ 52,000 $ 0
PMI Group, Inc. ........................................................ 6,200 306,125
Sanyo Shinpan Finance Co. Ltd. ......................................... 400 14,532
Worms Et Compagnie ..................................................... 200 11,629
----------
7,091,452
----------
INSURANCE (1.2%)
Aegon N.V. ............................................................. 400 49,119
ASR Verzekeringsgroep N.V. ............................................. 1,300 117,685
Catalana Occidente SA .................................................. 2,800 72,896
CGU PLC ................................................................ 5,795 90,731
Cia de Seguros Imperio, SA* ............................................ 9,000 73,359
Corporacion Mapfre ..................................................... 3,000 81,269
Everest Reinsurance Holdings,
Inc. ................................................................. 15,000 584,062
Fortis Amev N.V. ....................................................... 1,600 132,574
Gallagher (Arthur J.) & Co. ............................................ 10,000 441,250
ING Groep N.V. ......................................................... 3,000 182,917
Irish Life PLC ......................................................... 18,000 170,111
Kingsway Financial Services* ........................................... 2,000 15,615
Mediolanum Spa ......................................................... 10,000 74,085
Providian Financial Corp. .............................................. 15,750 1,181,250
Royal & Sun Alliance Insurance
Group PLC ............................................................ 9,651 78,803
Sampo Insurance Co. (A Shares) 2,000 75,898
SunAmerica, Inc. ....................................................... 14,500 1,176,313
Trygg-Hansa AB (B Shares)* ............................................. 3,800 114,529
United Assurance Group PLC ............................................. 8,100 73,450
----------
4,785,916
----------
MORTGAGE RELATED (0.1%)
Federal Home Loan Mortgage
Corp. ................................................................ 3,000 193,313
----------
REAL ESTATE (0.0%)
Boardwalk Equities, Inc.* .............................................. 3,000 32,986
Cheung Kong Holdings Ltd. .............................................. 4,000 28,785
Daibiru Corp. .......................................................... 1,000 6,380
Green Property PLC ..................................................... 10,000 56,517
Sumitomo Realty &
Development Co. Ltd. ................................................. 1,000 3,252
----------
127,920
----------
UTILITY--ELECTRIC (0.3%)
AES Corp.* ............................................................. 23,100 1,094,362
Cia Paranaense de Energia-Copel
(ADR) ................................................................ 7,000 49,875
Electricidade de Portugal SA ........................................... 500 11,013
Fortum Oyj* ............................................................ 4,964 30,180
Hong Kong Electric Holdings
Ltd. ................................................................. 20,000 60,667
----------
1,246,097
----------
UTILITY--GAS (0.1%)
Anglian Water PLC ...................................................... 4,667 64,446
Anglian Water PLC (B Shares)* .......................................... 5,000 4,077
Scottish Power PLC ..................................................... 10,000 102,742
----------
171,265
----------
UTILITY--TELEPHONE (0.6%)
British Telecommunications PLC 10,000 150,661
Cable & Wireless PLC ................................................... 10,000 122,958
France Telecom SA ...................................................... 500 39,717
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Frontier Corp. ......................................................... 38,000 $1,292,000
Nippon Telegraph & Telephone
Corp. ................................................................ 18 139,087
Swisscom AG* ........................................................... 500 209,625
Telecom Italia Spa ..................................................... 13,100 82,395
Telecom Italia Spa ..................................................... 8,000 68,219
Telefonica de Espana ................................................... 4,000 177,596
Telefonica S.A.--Bonus Rights* ......................................... 80 71
Telekom Malaysia BHD ................................................... 4,000 7,366
Telekomunikacja Polska S.A.
(GDR)* ............................................................... 15,500 79,050
----------
2,368,745
----------
TOTAL CREDIT SENSITIVE (6.2%) ......................................... 24,229,621
----------
ENERGY
COAL & GAS PIPELINES (0.0%)
BG PLC ................................................................. 18,529 116,920
OMV AG ................................................................. 300 28,271
----------
145,191
----------
OIL--DOMESTIC (0.9%)
Atlantic Richfield Co. ................................................. 9,700 632,925
Kerr-McGee Corp. ....................................................... 22,000 841,500
Louis Dreyfus Natural Gas
Corp.* ............................................................... 30,000 427,500
Tom Brown, Inc.* ....................................................... 17,500 175,547
USX-Marathon Group, Inc. ............................................... 40,800 1,229,100
----------
3,306,572
----------
OIL--INTERNATIONAL (0.2%)
British Petroleum Co. PLC .............................................. 11,100 165,756
Gulf Indonesia Resources Ltd.* ......................................... 3,200 20,800
Oil Search Ltd. ........................................................ 550 556
Orogen Minerals Ltd. ................................................... 5,160 5,315
Repsol SA .............................................................. 1,410 75,103
Shell Transport & Trading Co.
PLC .................................................................. 20,100 123,489
Talisman Energy Inc.* .................................................. 1,000 17,534
Total SA--B ............................................................ 2,881 291,734
----------
700,287
----------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Fracmaster Ltd.+ ....................................................... 10,700 31,327
Fugro N.V. ............................................................. 2,000 46,861
Noble Drilling Corp.* .................................................. 34,500 446,344
----------
524,532
----------
TOTAL ENERGY (1.2%) ................................................... 4,676,582
----------
TECHNOLOGY
ELECTRONICS (2.6%)
Cisco Systems, Inc.* ................................................... 32,050 2,974,641
Disco Corp. ............................................................ 400 11,697
Fujimi, Inc. ........................................................... 700 24,316
Intel Corp. ............................................................ 15,000 1,778,437
Micron Technology, Inc.* ............................................... 12,500 632,031
Micronics Japan Co. Ltd. ............................................... 1,000 14,621
Motorola, Inc. ......................................................... 29,000 1,770,813
Nikon Corp. ............................................................ 5,000 48,737
Rohm Co. Ltd. .......................................................... 1,000 91,183
Solectron Corp.* ....................................................... 24,300 2,258,381
Sterling Commerce, Inc.* ............................................... 10,000 450,000
The Swatch Group AG .................................................... 540 81,010
----------
10,135,867
----------
</TABLE>
47
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
--------------------- -----------------
<S> <C> <C>
OFFICE EQUIPMENT (1.8%)
Barco N.V. .......................... 469 $ 131,597
Canon, Inc. ......................... 1,000 21,400
Ceridian Corp.* ..................... 25,500 1,780,219
Compaq Computer Corp. ............... 45,100 1,891,381
Dell Computer Corp.* ................ 33,800 2,473,737
Policy Management Systems
Corp.* ............................ 17,100 863,550
-----------
7,161,884
-----------
OFFICE EQUIPMENT SERVICES (1.9%)
Computer Sciences Corp. ............. 7,000 451,063
Data Communication System Co. 1,200 24,511
First Data Corp. .................... 40,800 1,292,850
Frontec AB (B Shares)* .............. 11,000 47,148
Fuji Soft ABC, Inc. ................. 800 40,762
HBO & Co. ........................... 46,254 1,326,912
Mettler-Toledo International,
Inc.* ............................. 5,700 159,956
Microsoft Corp.* .................... 15,200 2,108,050
Misys PLC ........................... 14,000 101,968
Nippon System Development ........... 2,400 74,435
Novell, Inc.* ....................... 89,100 1,614,937
-----------
7,242,592
-----------
TELECOMMUNICATIONS (2.5%)
AirTouch Communications, Inc.* 13,100 944,837
America Online, Inc. ................ 13,100 2,096,000
Asia Satellite
Telecommunications Holdings
Ltd. .............................. 18,000 32,063
Clearnet Communications, Inc.
(Class A)* ........................ 26,500 215,312
DDI Corp. ........................... 18 66,992
Energis PLC* ........................ 4,000 89,182
Esprit Telecom Group PLC
(ADR)* ............................ 7,800 364,650
Fore Systems, Inc.* ................. 33,100 606,144
Global TeleSystems Group, Inc.* 12,800 713,600
Helsinki Telephone Corp. ............ 2,300 136,675
Keppel Telecommunications &
Transportation Ltd. ............... 15,000 9,909
MCI WorldCom, Inc.* ................. 12,400 889,700
Mobistar SA* ........................ 800 40,150
NetCom Systems AB
(B Shares)*+ ...................... 400 16,305
Nextel Communications, Inc.
(Class A)* ........................ 28,800 680,400
NTL, Inc.* .......................... 13,600 767,550
Orange PLC* ......................... 9,000 104,597
PT Indosat .......................... 45,000 58,641
PT Telekomunikasi Indonesia ......... 33,000 11,137
SK Telecom Co. Ltd. (ADR) ........... 3,999 40,740
Tele-Communications TCI
Ventures Group (Class A)* ......... 73,000 1,720,062
Videsh Sanchar Nigam Ltd.
(GDR)+ ............................ 1,700 20,825
Videsh Sanchar Nigam Ltd.
(GDR) ............................. 2,000 22,500
Vodafone Group PLC .................. 7,300 118,545
-----------
9,766,516
-----------
TOTAL TECHNOLOGY (8.8%) ............ 34,306,859
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
--------------------- -----------------
<S> <C> <C>
DIVERSIFIED
MISCELLANEOUS (0.7%)
BTR PLC (B Shares) .................. 20,000 $ 11,481
Citic Pacific Ltd. .................. 7,000 15,089
First Pacific Co. ................... 42,734 20,409
Hagemeyer N.V. ...................... 2,000 73,060
Montedison Spa ...................... 70,000 92,924
Smith (Howard) Ltd. ................. 4,000 26,461
Suez Lyonnaise des Eaux ............. 400 82,154
Tyco International Ltd. ............. 30,900 2,331,019
Vivendi ............................. 950 246,444
-----------
TOTAL DIVERSIFIED (0.7%) ........... 2,899,041
-----------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (33.2%)
(Cost $98,734,816) ................ 129,080,156
-----------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA ......................... 1,694 147,393
-----------
BUSINESS SERVICES (0.0%)
PRINTING, PUBLISHING &
BROADCASTING
ProSieben Media AG .................. 1,600 76,616
-----------
CONSUMER CYCLICALS (0.0%)
RETAIL--GENERAL
Hornbach Holding AG ................. 920 54,929
-----------
CONSUMER NONCYCLICALS (0.0%)
HOSPITAL SUPPLIES & SERVICES
Fresenius AG ........................ 200 42,004
-----------
TECHNOLOGY (0.1%)
TELECOMMUNICATIONS
Nokia Oyj (A Shares) ................ 3,000 364,781
-----------
TOTAL PREFERRED STOCKS (0.2%)
(Cost $316,410) ................... 685,723
-----------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
CONSUMER CYCLICALS (1.4%)
AUTO RELATED
Enterprise Rent-A-Car
6.8%, 02/15/08+ ................... $5,500,000 5,397,150
-----------
CONSUMER NONCYCLICALS (1.8%)
MEDIA & CABLE
Time Warner Entertainment Co.
8.375%, 03/15/23 .................. 5,625,000 6,828,638
-----------
CREDIT SENSITIVE
ASSET BACKED (2.7%)
Chase Credit Card Master Trust
6.0%, 08/15/05 .................... 5,000,000 5,068,750
First USA Credit Card Master
Trust Series 1998-9 (Class A)
5.28%, 09/18/06 ................... 5,200,000 5,200,000
-----------
10,268,750
-----------
BANKS (2.1%)
Chase Manhattan Corp.
8.625%, 05/01/02 .................. 5,500,000 6,001,545
St. George Bank Ltd.
7.15%, 10/15/05+ .................. 2,000,000 2,078,340
-----------
8,079,885
-----------
</TABLE>
48
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
FINANCIAL SERVICES (0.4%)
Household Finance Corp.
6.5%, 11/15/08 ................... $ 1,625,000 $ 1,687,160
------------
MORTGAGE RELATED (15.9%)
Federal Home Loan Mortgage
Corp.
7.5%, 04/01/28 ................... 2,603,868 2,673,035
Federal National Mortgage
Association:
6.0%, 11/01/10 ................... 11,910,909 11,925,797
6.5%, 01/01/11 ................... 2,692,031 2,728,206
7.0%, 04/01/12 ................... 6,029,997 6,158,134
7.0%, 05/01/26 ................... 1,677,600 1,710,104
7.0%, 09/01/27 ................... 1,902,729 1,939,595
6.5%, 03/01/28 ................... 1,956,316 1,967,320
7.0%, 05/01/28 ................... 2,266,822 2,310,742
6.5%, 09/01/28 ................... 2,234,133 2,246,700
6.5%, 10/01/28 ................... 1,984,434 1,995,596
8.0%, 12/01/28 ................... 4,100,000 4,245,222
Government National Mortgage
Association:
7.0%, 12/15/25 ................... 10,050,000 10,279,240
7.0%, 07/15/27 ................... 1,942,712 1,987,026
7.0%, 02/15/28 ................... 6,530,946 6,679,917
6.5%, 03/15/28 ................... 1,552,384 1,567,427
6.5%, 05/15/28 ................... 187,158 188,972
6.5%, 07/15/28 ................... 1,187,124 1,198,628
------------
61,801,661
------------
UTILITY--ELECTRIC (2.1%)
Consolidated Edison, Inc.
Series 97-B
6.45%, 12/01/07 .................. 4,350,000 4,624,006
Texas Utilities Co. (Series C)
6.375%, 01/01/08+ ................ 3,600,000 3,682,613
------------
8,306,619
------------
U.S. GOVERNMENT (25.2%)
U.S. Treasury:
6.0% Note, 08/15/00 .............. 26,350,000 26,893,469
6.25% Note, 04/30/01 ............. 15,600,000 16,150,883
6.5% Note, 08/31/01 .............. 7,100,000 7,421,722
6.5% Note, 05/31/02 .............. 8,360,000 8,827,642
5.75% Note, 08/15/03 ............. 760,000 793,607
4.25% Note, 11/15/03 ............. 7,325,000 7,228,859
6.875% Note, 05/15/06 ............ 7,530,000 8,511,257
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
5.625% Note, 05/15/08 ............ $ 250,000 $ 266,719
6.125% Bond, 11/15/27 ............ 13,340,000 14,940,800
5.25% Bond, 11/15/28 ............. 6,610,000 6,775,250
------------
97,810,208
------------
TOTAL CREDIT SENSITIVE (48.4%) 187,954,283
------------
TECHNOLOGY (0.8%)
ELECTRONICS
Motorola, Inc.
6.5%, 11/15/28 ................... 3,000,000 3,030,690
------------
TOTAL LONG-TERM DEBT SECURITIES (52.4%)
(Amortized Cost $200,280,375) 203,210,761
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
4.7%, due 01/04/99 ............... 35,900,000 35,885,938
5.1%, due 01/14/99 ............... 20,000,000 19,963,312
------------
TOTAL U.S. GOVERNMENT AGENCIES (14.4%) 55,849,250
------------
TOTAL SHORT-TERM DEBT SECURITIES (14.4%)
(Amortized Cost $55,849,250) ..... 55,849,250
------------
TOTAL INVESTMENTS (100.2%)
(Cost/Amortized Cost $355,180,851) 388,825,890
OTHER ASSETS
LESS LIABILITIES (-0.2%) ......... (731,851)
------------
NET ASSETS (100.0%) ................ $388,094,039
==============
</TABLE>
<TABLE>
<S> <C>
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Investments
Canada ..................................... 0.1%
France ..................................... 0.5
Germany .................................... 0.3
Japan ...................................... 0.9
Netherlands ................................ 0.3
New Zealand & Australia .................... 0.6
Scandinavia ................................ 0.4
Southeast Asia ............................. 0.2
Switzerland ................................ 0.3
United Kingdom ............................. 1.0
United States** ............................ 94.2
Other European Countries ................... 1.2
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 14.4%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $11,292,312 or
2.9% of net assets.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
49
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.4%)
Akzo Nobel N.V. .................... 20,000 $ 910,592
Bayer AG ........................... 40,500 1,699,955
Ciba Specialty Chemicals AG ........ 3,000 251,549
Georgia Gulf Corp. ................. 136,000 2,184,500
Hitachi Chemical Co. Ltd. .......... 159,000 1,197,608
Johnson Matthey PLC ................ 40,000 270,207
Nippon Chemi-Con Corp. ............. 62,000 202,180
Toagosei Co. Ltd. .................. 158,000 296,819
Yule Catto & Company PLC ........... 70,000 285,348
----------
7,298,758
----------
CHEMICALS--SPECIALTY (0.3%)
Great Lakes Chemical Corp. ......... 63,500 2,540,000
NGK Insulators ..................... 92,000 1,187,807
Solutia Inc. ....................... 62,500 1,398,437
----------
5,126,244
----------
METALS & MINING (0.0%)
Nord Resources Corp.* .............. 27,939 27,939
Randgold Resources Ltd.
(GDR)* ........................... 30,300 75,750
Randgold Resources Ltd.
(GDR)--Rights* ................... 30,300 0
Toho Titanium ...................... 11,000 60,532
----------
164,221
----------
PAPER (0.1%)
Buhrmann N.V. ...................... 42,400 758,635
Mayr-Melnhof Karton AG+ ............ 6,756 315,747
Nippon Paper Industries Co. ........ 6,000 27,328
UPM-Kymmene Oyj .................... 25,320 705,133
----------
1,806,843
----------
STEEL (0.0%)
Koninklijke Hoogovens N.V. ......... 20,000 553,810
NatSteel Ltd. ...................... 220,000 241,333
Pohang Iron & Steel Co. Ltd.
(ADR) ............................ 15,000 253,125
----------
1,048,268
----------
TOTAL BASIC MATERIALS (0.8%) ..... 15,444,334
----------
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (0.8%)
Republic Services, Inc.
(Class A)* ....................... 203,500 3,752,031
Waste Management, Inc. ............. 256,730 11,970,036
----------
15,722,067
----------
PRINTING, PUBLISHING &
BROADCASTING (2.9%)
Cablevision Systems Corp.
(Class A)* ....................... 134,000 6,725,125
CBS Corp. .......................... 567,500 18,585,625
Comcast Corp. (Class A) SPL ........ 38,000 2,230,125
Fox Entertainment Group, Inc.
(Class A)* ....................... 103,200 2,599,350
Grupo Televisa S.A. (GDR)* ......... 30,000 740,625
Liberty Media Group (Class A)* 221,650 10,209,753
MediaOne Group, Inc.* .............. 69,000 3,243,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
New Straits Times Press BHD ........ 65,000 $ 31,961
Nippon Television Network
Corp. ............................ 960 283,279
Reed International PLC ............. 70,000 547,403
Seat Pagine Gialle Spa* ............ 2,650,000 2,500,151
Tele-Communications, Inc.
(Class A)* ....................... 96,000 5,310,000
Tokyo Broadcasting System, Inc. 22,000 246,221
United News & Media PLC ............ 60,000 526,106
USA Networks, Inc.* ................ 9,500 314,687
Viacom, Inc. (Class B)* ............ 32,600 2,412,400
----------
56,505,811
----------
PROFESSIONAL SERVICES (0.3%)
Cordiant Communications Group
PLC .............................. 200,000 349,406
Marlborough International PLC* 8,600 27,500
Meitec Corp. ....................... 20,000 499,779
Modis Professional Services, Inc.* 48,458 702,641
Nielsen Media Research, Inc. ....... 149,500 2,691,000
Vedior N.V. ........................ 7,104 139,969
WPP Group PLC ...................... 150,000 912,823
----------
5,323,118
----------
TRUCKING, SHIPPING (0.2%)
Bergesen Dy ASA (A Shares) ......... 47,300 566,303
Frontline Ltd.* .................... 45,689 87,162
Frontline Ltd.--Warrants
(expire 05/11/01)* ............... 26,628 0
Irish Continental Group PLC ........ 36,000 425,665
Knightsbridge Tankers Ltd. ......... 64,500 1,342,406
OMI Corp.* ......................... 335,000 1,088,750
----------
3,510,286
----------
TOTAL BUSINESS SERVICES (4.2%) 81,061,282
----------
CAPITAL GOODS
AEROSPACE (0.2%)
British Aerospace PLC .............. 100,000 847,726
Loral Space & Communications* 120,000 2,137,500
Senior Engineering Group PLC ....... 130,000 248,744
----------
3,233,970
----------
BUILDING & CONSTRUCTION (0.3%)
ABB AG ............................. 300 352,169
Beazer Group PLC ................... 187,000 476,041
Bouygues ........................... 10,708 2,206,926
Daito Trust Construction Co.
Ltd. ............................. 2,800 24,291
Groupe GTM ......................... 9,953 1,032,783
National House Industrial Co.
Ltd. ............................. 53,000 451,334
Technip SA ......................... 10,350 973,987
Toda Corp. ......................... 10,000 48,471
----------
5,566,002
----------
BUILDING MATERIALS & FOREST
PRODUCTS (0.7%)
BPB PLC ............................ 110,000 415,918
Fujikura Ltd. ...................... 34,000 182,579
Holderbank Financiere Glarus
AG--B ............................ 1,385 1,642,005
Lafarge SA ......................... 6,000 569,997
Louisiana-Pacific Corp. ............ 30,000 549,375
</TABLE>
50
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Martin Marietta Materials, Inc. ..... 120,000 $7,462,500
Matsushita Electric Works Ltd. ...... 104,000 1,064,422
Nichiha Corp. ....................... 9,700 88,619
Rugby Group PLC ..................... 447,460 692,386
Unidare PLC ......................... 85,500 222,537
Unidare PLC--Units .................. 4,500 11,713
----------
12,902,051
----------
ELECTRICAL EQUIPMENT (1.3%)
Daikin Industries Ltd. .............. 140,000 1,389,455
General Electric Co. ................ 209,900 21,422,919
Johnson Electric Holdings Ltd. ...... 500,000 1,284,327
Legrand SA .......................... 3,800 1,006,852
Schneider SA ........................ 10,000 606,494
Sumitomo Electric Industries ........ 56,000 630,713
----------
26,340,760
----------
MACHINERY (1.5%)
AlliedSignal, Inc. .................. 138,400 6,132,850
Bodycote International PLC .......... 30,000 410,552
FKI PLC ............................. 100,000 222,954
Fujitec Co. Ltd. .................... 96,000 619,300
IHC Caland N.V. ..................... 8,000 332,286
Keyence Corp. ....................... 1,300 160,124
KSB AG .............................. 2,600 441,524
Legris Industries SA ................ 17,300 847,745
Misumi Corp. ........................ 11,900 226,717
Mori Seiki Co. Ltd. ................. 8,000 90,740
Nitta Corp. ......................... 8,000 45,654
Nitto Kohki Co. Ltd. ................ 3,100 25,547
Pall Corp. .......................... 12,000 303,750
Schindler Holding AG
Participating Certificate ......... 915 1,467,736
Schindler Holding AG
Registered ........................ 450 767,772
Siebe PLC ........................... 220,000 867,525
SMC Corp. ........................... 6,000 479,575
Stork N.V. .......................... 18,000 411,204
TI Group PLC ........................ 123,795 666,844
United Technologies Corp. ........... 121,900 13,256,625
Valmet Oyj .......................... 31,000 413,418
Vestas Wind Systems A/S* ............ 4,000 214,314
----------
28,404,756
----------
TOTAL CAPITAL GOODS (4.0%) ........ 76,447,539
----------
CONSUMER CYCLICALS
AIRLINES (0.0%)
Continental Airlines, Inc.
(Class B)* ........................ 2 79
KLM ................................. 8,000 241,973
Virgin Express Holdings PLC
(ADR)* ............................ 10,400 83,200
----------
325,252
----------
APPAREL, TEXTILE (0.1%)
Carli Gry International A/S ......... 1,200 72,402
Onward Kashiyama Co. Ltd. ........... 79,000 1,062,667
----------
1,135,069
----------
AUTO RELATED (0.2%)
Continental AG ...................... 55,000 1,528,053
Minebea Co. Ltd. .................... 25,000 286,664
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
NGK Spark Plug Co. .................. 14,000 $ 142,791
Sumitomo Rubber Industries,
Inc. .............................. 129,000 616,136
----------
2,573,644
----------
AUTOS & TRUCKS (0.1%)
Bajaj Auto Ltd. (GDR) ............... 7,500 113,438
Honda Motor Co. Ltd. ................ 23,000 756,136
UMW Holdings BHD .................... 170,000 125,230
Volkswagen AG ....................... 6,000 485,329
----------
1,480,133
----------
FOOD SERVICES, LODGING (0.1%)
Accor SA ............................ 2,200 476,250
Choice Hotels Scandinavia ASA ....... 108,000 152,039
Compass Group PLC ................... 90,000 1,030,997
----------
1,659,286
----------
HOUSEHOLD FURNITURE,
APPLIANCES (0.4%)
Aiwa Co. Ltd. ....................... 15,000 396,101
Fisher & Paykel Industries Ltd. ..... 120,000 432,823
Hunter Douglas N.V. ................. 20,298 672,312
Koninklijke Philips Electronics
N.V. .............................. 8,000 536,770
Moulinex* ........................... 17,000 261,562
Rubbermaid, Inc. .................... 166,000 5,218,625
Sony Corp. .......................... 11,000 802,215
----------
8,320,408
----------
LEISURE RELATED (2.0%)
Amer Group Ltd.* .................... 25,000 258,387
Berjaya Sports Toto BHD ............. 140,000 122,210
Canal Plus .......................... 2,000 545,666
Carnival Corp. (Class A) ............ 179,100 8,596,800
Cendant Corp.* ...................... 185,300 3,532,281
Cyrk, Inc.* ......................... 220,600 1,654,500
Disney (Walt) Co. ................... 82,900 2,487,000
Granada Group PLC ................... 88,900 1,571,599
Harley-Davidson, Inc. ............... 230,500 10,919,938
Hoyts Cinemas Group ................. 30,000 25,184
Ladbroke Group PLC .................. 279,118 1,121,543
MGM Grand, Inc.* .................... 120,000 3,255,000
Mirage Resorts, Inc.* ............... 156,100 2,331,744
Nelvana Ltd.*+ ...................... 8,000 149,642
Nintendo Co. Ltd. ................... 13,700 1,329,331
Nippon Broadcasting System .......... 5,000 200,266
SHIMANO, INC. ....................... 18,000 464,953
Thomson Travel Group PLC ............ 150,000 409,304
VTech Holdings Ltd. ................. 50,000 218,142
----------
39,193,490
----------
PHOTO & OPTICAL (0.1%)
Essilor International ............... 500 196,798
Fuji Photo Film Co. ................. 37,000 1,377,049
Gretag Imaging Group* ............... 9,000 774,335
Noritsu Koki Co. Ltd. ............... 10,200 221,444
----------
2,569,626
----------
RETAIL--GENERAL (3.0%)
Aldeasa SA .......................... 22,000 863,777
BAA PLC ............................. 108,800 1,269,895
Boots Co. PLC ....................... 74,700 1,272,095
</TABLE>
51
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Carrefour .......................... 500 $ 377,404
Circuit City Stores-Circuit City
Group ............................ 159,300 7,955,044
Dixons Group PLC ................... 28,363 399,004
Genesis Direct, Inc.* .............. 94,400 737,500
Home Depot, Inc. ................... 107,900 6,602,131
Japan Airport Terminal Co. Ltd. 38,000 234,027
Kingfisher PLC ..................... 152,326 1,648,665
Kohl's Corp.* ...................... 137,800 8,466,087
Koninklijke Ahold NV ............... 10,000 369,562
Limited, Inc. ...................... 312,500 9,101,562
Paris Miki, Inc. ................... 4,400 101,374
Sato Corp. ......................... 16,000 283,562
Smith (W.H.) Group PLC ............. 22,500 178,571
Tandy Corp. ........................ 135,000 5,560,313
Wal-Mart Stores, Inc. .............. 156,400 12,736,825
-----------
58,157,398
-----------
TOTAL CONSUMER CYCLICALS (6.0%) 115,414,306
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.0%)
Coca-Cola Co. ...................... 129,600 8,667,000
Coca-Cola Enterprises, Inc. ........ 186,000 6,649,500
Diageo PLC ......................... 60,000 682,839
Fomento Economico Mexico
ADR .............................. 20,000 532,500
Louis Dreyfus Citrus ............... 1,000 25,065
Mercian Corp. ...................... 48,000 196,083
Scottish & Newcastle PLC ........... 100,000 1,161,359
Whitbread PLC ...................... 92,500 1,184,299
-----------
19,098,645
-----------
CONTAINERS (0.0%)
Schmalbach Lubeca AG ............... 8,300 1,145,515
-----------
DRUGS (2.5%)
Bristol-Myers Squibb Co. ........... 86,200 11,534,637
Daiichi Pharmaceutical Co. ......... 79,000 1,336,385
Forest Laboratories, Inc.
(Class A)* ....................... 45,000 2,393,438
Merck KGAA ......................... 18,700 841,584
Mylan Labs Inc. .................... 55,000 1,732,500
Novartis AG ........................ 300 590,594
Orion-Yhtyma Oy (B Shares) ......... 37,800 907,387
Pfizer, Inc. ....................... 79,500 9,972,281
Sankyo Co. Ltd. .................... 17,000 372,087
Sanofi SA .......................... 9,000 1,481,349
Santen Pharmaceutical Co. Ltd. ..... 42,000 807,621
Schering Plough Corp. .............. 285,200 15,757,300
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 16,000 516,083
-----------
48,243,246
-----------
FOODS (1.4%)
Avonmore Waterford Group
PLC .............................. 20,000 62,467
Barry Callebaut AG ................. 5,400 1,228,436
Campbell Soup Co. .................. 129,090 7,099,950
Huhtamaki Oy Series I .............. 11,550 439,443
Nestle SA .......................... 1,150 2,507,109
Nutreco Holding N.V. ............... 3,900 153,682
Orkla ASA .......................... 33,200 495,770
Parmalat Finanziaria Spa ........... 100,000 191,110
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Rite Aid Corp. ..................... 173,000 $ 8,574,313
Tyson Foods, Inc. (Class A) ........ 286,400 6,086,000
-----------
26,838,280
-----------
HOSPITAL SUPPLIES & SERVICES (1.7%)
Columbia/HCA Healthcare Corp. 421,700 10,437,075
Medtronic, Inc. .................... 184,300 13,684,275
PT Tempo Scan Pacific* ............. 206,000 10,944
Sun International Hotels Ltd.* ..... 71,600 3,253,325
Tenet Healthcare Corp.* ............ 182,700 4,795,875
-----------
32,181,494
-----------
RETAIL--FOOD (0.7%)
Delhaize-Le Lion SA ................ 8,800 773,850
Familymart Co. ..................... 12,900 644,714
Food Lion, Inc. (Class A) .......... 254,400 2,703,000
Kroger Co.* ........................ 159,000 9,619,500
Seven-Eleven Japan Co. Ltd. ........ 5,200 419,318
-----------
14,160,382
-----------
SOAPS & TOILETRIES (1.1%)
Avon Products, Inc. ................ 214,900 9,509,325
Estee Lauder Companies
(Class A) ........................ 53,225 4,550,737
Gillette Co. ....................... 106,700 5,154,944
Kao Corp. .......................... 66,000 1,491,360
-----------
20,706,366
-----------
TOBACCO (1.4%)
Austria Tabakwerke AG .............. 12,300 943,047
Japan Tobacco, Inc. ................ 150 1,501,994
Philip Morris Cos., Inc. ........... 407,400 21,795,900
Seita .............................. 27,700 1,734,502
Swedish Match AB ................... 111,801 407,389
Tabacalera SA--A ................... 70,000 1,763,299
-----------
28,146,131
-----------
TOTAL CONSUMER
NONCYCLICALS (9.8%) ........... 190,520,059
-----------
CREDIT SENSITIVE
BANKS (3.3%)
Allied Irish Bank .................. 225,000 4,013,178
Banca Nazionale del Lavoro
(BNL)* ........................... 20,000 55,881
Banca Nazionale del Lavoro
(BNL)* ........................... 170,000 508,406
Bancaria de Espana SA .............. 10,000 258,584
Banco Bilbao Vizcaya SA ............ 164,700 2,578,508
Banco Central Hispanoamericano
SA ............................... 60,000 711,371
Banco Santander SA ................. 58,200 1,154,827
Bangkok Bank Public Co. Ltd.* ...... 20,000 41,265
Bank Austria AG .................... 6,305 320,587
Bank of Ireland .................... 60,000 1,334,107
Bank of Tokyo-Mitsubishi Ltd. ...... 15,000 155,516
BankAmerica Corp. .................. 272,727 16,397,711
Banque Nationale de Paris .......... 13,700 1,127,961
Barclays PLC ....................... 18,000 388,140
BPI-SGPS, SA ....................... 12,800 434,580
Chase Manhattan Corp. .............. 38,300 2,606,794
Citigroup, Inc. .................... 368,000 18,216,000
Dao Heng Bank Group Ltd. ........... 30,000 92,743
</TABLE>
52
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Erste Bank Der
Oesterreichischen Sparkassen
AG ................................ 3,730 $ 199,614
ForeningsSparbanken AB .............. 17,300 448,754
Istituto Bancario San Paolo di
Torino Spa ........................ 88,511 1,563,061
National Bank of Canada ............. 30,000 484,060
Nordbanken Holding AB+ .............. 20,000 128,462
PT Bank Dagang Nasional
Indonesia Tbk* .................... 1,230,000 11,531
Seventy-Seven Bank Co. Ltd. ......... 123,000 1,231,635
Shizuoka Bank Ltd. .................. 25,000 309,038
Skandinaviska Enskilda Banken
(Series A) ........................ 56,000 591,421
Societe Generale .................... 6,000 971,464
State Bank of India (GDR) ........... 27,000 226,125
Suncorp-Metway Ltd. ................. 32,858 152,936
Thai Farmers Bank Public Co.--
Warrants (expire 09/15/02)* ....... 2,875 388
Toho Bank ........................... 10,000 41,471
Unicredito Italiano Spa ............. 340,500 2,017,053
United Overseas Bank Ltd. ........... 4,000 25,697
Wells Fargo Co. ..................... 118,100 4,716,619
Wing Hang Bank Ltd. ................. 161,000 401,084
Yamaguchi Bank ...................... 70,000 661,232
-----------
64,577,804
-----------
FINANCIAL SERVICES (2.8%)
Aiful Corp. ......................... 19,600 1,191,458
Associates First Capital Corp.
(Class A) ......................... 148,200 6,279,975
CMAC Investment Corp. ............... 65,900 3,027,281
Credit Saison Co. ................... 26,000 641,648
Daiwa Securities Co. Ltd. ........... 16,000 54,728
Garban PLC* ......................... 3,663 13,957
Household International, Inc. ....... 276,500 10,956,312
MBNA Corp. .......................... 657,375 16,393,289
Merrill Lynch & Co., Inc. ........... 65,800 4,392,150
Morgan Stanley Dean Witter &
Co. ............................... 111,400 7,909,400
Nichiei Co. Ltd. .................... 3,500 279,132
Peregrine Investment Holdings
Ltd.* ............................. 472,000 0
PMI Group, Inc. ..................... 48,600 2,399,625
Sanyo Shinpan Finance Co. Ltd. ...... 3,000 108,994
Worms Et Compagnie .................. 2,500 145,362
-----------
53,793,311
-----------
INSURANCE (1.8%)
Aegon N.V. .......................... 5,000 613,984
ASR Verzekeringsgroep N.V. .......... 12,000 1,086,320
Catalana Occidente SA ............... 2,060 53,631
CGU PLC ............................. 52,032 814,650
Cia de Seguros Imperio, SA* ......... 98,000 798,793
Corporacion Mapfre .................. 24,000 650,155
Everest Reinsurance Holdings,
Inc. .............................. 100,000 3,893,750
Fortis Amev N.V. .................... 18,000 1,491,453
Gallagher (Arthur J.) & Co. ......... 65,000 2,868,125
ING Groep N.V. ...................... 44,000 2,682,784
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Irish Life PLC ...................... 100,000 $ 945,060
Kingsway Financial Services* ........ 20,000 156,148
Mediolanum Spa ...................... 70,000 518,597
Providian Financial Corp. ........... 130,500 9,787,500
Royal & Sun Alliance Insurance
Group PLC ......................... 100,936 824,171
Sampo Insurance Co. (A Shares) 22,000 834,878
SunAmerica, Inc. .................... 89,000 7,220,125
Trygg-Hansa AB (B Shares)* .......... 3,600 108,501
United Assurance Group PLC .......... 71,600 649,263
-----------
35,997,888
-----------
MORTGAGE RELATED (0.1%)
Freddie Mac ......................... 20,000 1,288,750
-----------
REAL ESTATE (0.1%)
Boardwalk Equities, Inc.* ........... 26,000 285,882
Cheung Kong Holdings Ltd. ........... 40,000 287,844
City Developments Ltd. .............. 4,000 17,333
Daibiru Corp. ....................... 4,000 25,521
Green Property PLC .................. 120,000 678,208
Sumitomo Realty &
Development Co. Ltd. .............. 14,000 45,529
-----------
1,340,317
-----------
UTILITY--ELECTRIC (0.5%)
AES Corp.* .......................... 187,400 8,878,075
Cia Paranaense de Energia-Copel
(ADR) ............................. 54,000 384,750
Electricidade de Portugal SA ........ 5,000 110,134
Fortum Oyj* ......................... 44,938 273,209
Hong Kong Electric Holdings
Ltd. .............................. 179,000 542,967
-----------
10,189,135
-----------
UTILITY--GAS (0.2%)
Anglian Water PLC ................... 120,027 1,657,551
Anglian Water PLC (B Shares)* ....... 128,600 104,845
Scottish Power PLC .................. 220,000 2,260,324
-----------
4,022,720
-----------
UTILITY--TELEPHONE (1.0%)
British Telecommunications PLC 186,600 2,811,326
Cable & Wireless PLC ................ 90,000 1,106,619
Frontier Corp. ...................... 225,000 7,650,000
Nippon Telegraph & Telephone
Corp. ............................. 185 1,429,508
Swisscom AG* ........................ 5,000 2,096,245
Telecom Italia Spa .................. 84,000 716,299
Telecom Italia Spa .................. 110,800 696,898
Telefonica de Espana ................ 40,000 1,775,964
Telefonica S.A.--Bonus Rights* ...... 800 709
Telekom Malaysia BHD ................ 38,500 70,902
Telekomunikacja Polska S.A.
(GDR)* ............................ 155,000 790,500
-----------
19,144,970
-----------
TOTAL CREDIT SENSITIVE (9.8%) ..... 190,354,895
-----------
ENERGY
COAL & GAS PIPELINES (0.1%)
BG PLC .............................. 164,117 1,035,596
OMV AG .............................. 1,400 131,935
-----------
1,167,531
-----------
</TABLE>
53
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OIL--DOMESTIC (1.0%)
Apache Corp. ....................... 30,000 $ 759,375
Atlantic Richfield Co. ............. 65,500 4,273,875
Louis Dreyfus Natural Gas
Corp.* ........................... 245,400 3,496,950
Tom Brown, Inc.* ................... 141,000 1,414,406
USX-Marathon Group, Inc. ........... 278,200 8,380,775
-----------
18,325,381
-----------
OIL--INTERNATIONAL (0.3%)
British Petroleum Co. PLC .......... 98,700 1,473,882
Gulf Indonesia Resources Ltd.* ..... 17,900 116,350
Oil Search Ltd. .................... 5,600 5,662
Repsol SA .......................... 13,950 743,044
Shell Transport & Trading Co.
PLC .............................. 178,950 1,099,419
Talisman Energy, Inc.* ............. 1,000 17,534
Total SA--B ........................ 26,234 2,656,489
-----------
6,112,380
-----------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Fracmaster Ltd. .................... 92,800 271,698
Fugro N.V. ......................... 10,000 234,304
Noble Drilling Corp.* .............. 292,100 3,779,044
Stolt Comex Seaway, S.A. (ADR)* 50,000 281,250
-----------
4,566,296
-----------
TOTAL ENERGY (1.6%) .............. 30,171,588
-----------
TECHNOLOGY
ELECTRONICS (4.3%)
Altera Corp.* ...................... 11,900 724,413
Cisco Systems, Inc.* ............... 258,500 23,992,031
Disco Corp. ........................ 4,000 116,970
Fujimi, Inc. ....................... 6,000 208,418
Intel Corp. ........................ 114,800 13,610,975
Micron Technology, Inc.* ........... 88,400 4,469,725
Micronics Japan Co. Ltd. ........... 7,000 102,348
Motorola, Inc. ..................... 189,500 11,571,344
Murata Manufacturing Co., Ltd. ..... 7,000 290,917
Nikon Corp. ........................ 60,000 584,847
Rohm Co. Ltd. ...................... 10,000 911,830
Sanmina Corp.* ..................... 88,400 5,525,000
Solectron Corp.* ................... 181,600 16,877,450
Sterling Commerce, Inc.* ........... 75,000 3,375,000
TDK Corp. .......................... 2,000 183,075
The Swatch Group AG ................ 4,850 727,588
Tokyo Cathode Laboratory Co. ....... 4,100 27,757
Yokogawa Electric Corp. ............ 12,000 59,548
-----------
83,359,236
-----------
OFFICE EQUIPMENT (2.9%)
Barco N.V. ......................... 4,314 1,210,466
Canon, Inc. ........................ 10,000 214,001
Ceridian Corp.* .................... 181,300 12,657,006
Compaq Computer Corp. .............. 361,300 15,152,019
Dell Computer Corp.* ............... 259,400 18,984,837
Policy Management Systems
Corp.* ........................... 157,300 7,943,650
-----------
56,161,979
-----------
OFFICE EQUIPMENT SERVICES (2.7%)
Computer Sciences Corp. ............ 48,000 3,093,000
Data Communication System Co. 11,700 238,977
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
First Data Corp. ................... 312,200 $ 9,892,837
Frontec AB (B Shares)* ............. 105,000 450,051
Fuji Soft ABC, Inc. ................ 11,900 606,336
HBO & Co. .......................... 330,923 9,493,354
Mettler-Toledo International,
Inc.* ............................ 45,900 1,288,069
Microsoft Corp.* ................... 108,500 15,047,594
Misys PLC .......................... 125,000 910,431
Nippon System Development .......... 29,000 899,424
Novell, Inc.* ...................... 573,400 10,392,875
-----------
52,312,948
-----------
TELECOMMUNICATIONS (3.4%)
AirTouch Communications, Inc.* 90,000 6,491,250
America Online, Inc. ............... 89,000 14,240,000
Asia Satellite Telecommunications
Holdings Ltd. .................... 120,000 213,753
Clearnet Communications, Inc.
(Class A)* ....................... 75,000 609,375
DDI Corp. .......................... 140 521,046
Energis PLC* ....................... 40,000 891,817
Esprit Telecom Group PLC
(ADR)* ........................... 65,100 3,043,425
Fore Systems, Inc.* ................ 270,900 4,960,856
Global TeleSystems Group, Inc.* 77,700 4,331,775
Helsinki Telephone Corp. ........... 18,300 1,087,459
Hyperion Telecommunications,
Inc. (Class A)* .................. 74,100 1,120,763
Keppel Telecommunications &
Transportation Ltd. .............. 193,000 127,497
MCI WorldCom, Inc.* ................ 134,860 9,676,205
Mobistar SA* ....................... 8,000 401,504
NetCom Systems AB (B Shares)* 4,000 163,049
Nextel Communications, Inc.
(Class A)* ....................... 121,900 2,879,888
NTL, Inc.* ......................... 62,600 3,532,988
Orange PLC* ........................ 94,000 1,092,459
PT Indosat ......................... 419,000 546,009
PT Telekomunikasi Indonesia ........ 309,000 104,288
SK Telecom Co. Ltd. (ADR) .......... 22,701 231,266
Tele-Communications TCI
Ventures Group (Class A)* ........ 363,000 8,553,187
Videsh Sanchar Nigam Ltd.
(GDR)+ ........................... 14,400 176,400
Videsh Sanchar Nigam Ltd.
(GDR) ............................ 14,000 157,500
Vodafone Group PLC ................. 80,000 1,299,125
-----------
66,452,884
-----------
TOTAL TECHNOLOGY (13.3%) ......... 258,287,047
-----------
DIVERSIFIED
MISCELLANEOUS (1.2%)
BTR PLC (B Shares) ................. 180,000 103,325
Citic Pacific Ltd. ................. 60,000 129,336
First Pacific Co. .................. 397,685 189,930
Hagemeyer N.V. ..................... 8,000 292,241
Montedison Spa ..................... 1,113,000 1,477,493
Smith (Howard) Ltd. ................ 35,000 231,533
Suez Lyonnaise des Eaux ............ 3,000 616,155
Tomkins PLC ........................ 37,500 176,887
Tyco International Ltd. ............ 243,700 18,384,119
Vivendi ............................ 8,400 2,179,086
-----------
TOTAL DIVERSIFIED (1.2%) ......... 23,780,105
-----------
</TABLE>
54
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (50.7%)
(Cost $733,680,790) ............... $981,481,155
------------
PREFERRED STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS
Henkel KGAA ......................... 15,180 1,320,792
------------
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
ProSieben Media AG .................. 15,000 718,272
------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A ............... 30,600 1,740,375
------------
TOTAL BUSINESS SERVICES (0.1%) 2,458,647
------------
CAPITAL GOODS (0.0%)
AEROSPACE
Loral Space & Communications
6.0% Conv. ........................ 18,400 969,450
------------
CONSUMER CYCLICALS
AIRLINES (0.0%)
Continental Airlines Finance
Trust
8.5% Conv. ........................ 4,050 280,462
------------
LEISURE RELATED (0.2%)
Royal Caribbean Cruises Ltd.
7.25% Series A .................... 22,300 2,564,500
------------
RETAIL--GENERAL (0.0%)
Hornbach Holding AG ................. 8,010 478,245
------------
TOTAL CONSUMER CYCLICALS (0.2%) 3,323,207
------------
CONSUMER NONCYCLICALS (0.0%)
HOSPITAL SUPPLIES & SERVICES
Fresenius AG ........................ 1,000 210,021
------------
CREDIT SENSITIVE (0.1%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv. Series A ............. 39,700 2,759,150
------------
TECHNOLOGY
ELECTRONICS (0.1%)
L&H Capital Trust I
4.75% Conv.+ ...................... 30,800 974,050
Times Mirror Co. .................... 11,900 663,425
------------
1,637,475
------------
TELECOMMUNICATIONS (0.7%)
AirTouch Communications, Inc.
4.25% Conv., Series C ............. 22,700 2,338,100
ICG Communications, Inc.
6.75% Conv. ....................... 14,600 777,450
Intermedia Communications,
Inc.:
7.0% Conv.+ ....................... 21,400 547,038
7.0% Conv. Series D ............... 22,200 567,487
IXC Communications, Inc.:
6.75% Conv. ....................... 6,700 221,938
6.75% Conv.+ ...................... 28,800 954,000
Nextel Strypes Trust
7.25% Conv. ....................... 82,200 1,685,100
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Nokia Oyj (A Shares) ................ 28,200 $ 3,428,941
WinStar Communications, Inc.
7.0% Conv. ........................ 52,300 2,484,250
------------
13,004,304
------------
TOTAL TECHNOLOGY (0.8%) ........... 14,641,779
------------
TOTAL PREFERRED STOCKS (1.3%)
(Cost $23,282,369) ................ 25,683,046
------------
PRINCIPAL
AMOUNT
-----------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.2%)
Clear Channel
Communications, Inc.
2.625% Conv., 04/01/03 ............ $ 700,000 759,500
Mail-Well, Inc.
5.0% Conv., 11/01/02 .............. 780,000 702,000
P-Com, Inc.:
4.25% Conv., 11/01/02+ ............ 1,280,000 601,600
4.25% Conv., 11/01/02 ............. 680,000 319,600
Tele-Communications, Inc.
4.5%, 02/15/06 .................... 2,115,000 2,273,625
------------
4,656,325
------------
PROFESSIONAL SERVICES (0.1%)
Personnel Group of America:
5.75% Conv., 07/01/04+ ............ 370,000 428,275
5.75% Conv., 07/01/04 ............. 670,000 775,525
------------
1,203,800
------------
TOTAL BUSINESS SERVICES (0.3%)..... 5,860,125
------------
CAPITAL GOODS (0.1%)
AEROSPACE
Orbital Sciences Corp.:
5.0% Conv., 10/01/02+ ............. 690,000 1,166,100
5.0% Conv., 10/01/02 .............. 200,000 338,000
------------
1,504,100
------------
CONSUMER CYCLICALS (0.1%)
RETAIL--GENERAL
Office Depot, Inc.
Zero Coupon, 11/01/08 ............. 1,895,000 1,589,431
------------
CONSUMER NONCYCLICALS
DRUGS (0.5%)
MedImmune, Inc.:
7.0% Conv., 07/01/03 .............. 860,000 4,347,300
7.0% Conv. Sub. Note,
07/01/03+ ...................... 410,000 2,072,550
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+ ............ 580,000 793,150
4.25% Conv., 05/31/00 ............. 695,000 950,413
------------
8,163,413
------------
HOSPITAL SUPPLIES & SERVICES (0.2%)
Alternative Living Services Ltd.
5.25% Conv., 12/15/02 ............. 1,095,000 1,396,125
FPA Medical Management, Inc.
6.5% Conv., 12/15/01 (a)+ ......... 1,130,000 5,650
</TABLE>
55
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- ------------------
<S> <C> <C>
RES-Care, Inc.:
6.0% Conv., 12/01/04 ............ $ 145,000 $ 199,919
6.0% Conv., 12/01/04+ ........... 1,095,000 1,518,628
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ............ 665,000 992,512
------------
4,112,834
------------
MEDIA & CABLE (1.8%)
Time Warner Entertainment Co.
8.375%, 03/15/23 ................ 23,580,000 28,625,649
Turner Broadcasting System, Inc.
8.375%, 07/01/13 ................ 5,530,000 6,609,898
------------
35,235,547
------------
TOTAL CONSUMER NONCYCLICALS (2.5%) 47,511,794
------------
CREDIT SENSITIVE
ASSET BACKED (0.8%)
Chase Credit Card Master Trust
6.0%, 08/15/05 .................. 15,000,000 15,206,250
------------
BANKS (0.8%)
Citicorp
6.375%, 11/15/08 ................ 15,000,000 15,525,450
------------
FINANCIAL SERVICES (1.1%)
Household Finance Corp.
6.5%, 11/15/08 .................. 20,100,000 20,868,865
------------
MORTGAGE RELATED (11.8%)
Federal Home Loan Mortgage
Corp.:
GOLD 7.0%, 09/01/11 ............. 19,599,534 20,028,274
7.0%, 01/01/12 .................. 4,132,014 4,222,402
7.5%, 04/01/28 .................. 9,986,462 10,251,733
Federal National Mortgage
Association:
6.5%, 06/01/11 .................. 32,609,640 33,068,131
6.5%, 09/01/11 .................. 13,408,739 13,597,266
7.0%, 05/01/26 .................. 5,350,185 5,458,848
7.0%, 09/01/27 .................. 1,839,305 1,876,091
7.0%, 01/01/28 .................. 8,310,140 8,471,149
6.5%, 03/01/28 .................. 5,868,948 5,901,961
6.5%, 07/01/28 .................. 421,186 423,555
6.5%, 09/01/28 .................. 5,957,688 5,991,200
6.5%, 10/01/28 .................. 5,917,730 5,951,017
8.0%, 12/01/28 .................. 15,600,000 16,152,552
Government National Mortgage
Association:
7.0%, 12/15/25 .................. 121,551 124,323
7.0%, 07/15/27 .................. 9,713,559 9,935,125
7.0%, 02/15/28 .................. 25,196,908 25,771,650
6.5%, 03/15/28 .................. 11,943,106 12,058,835
6.5%, 04/15/28 .................. 8,545,241 8,628,045
6.5%, 05/15/28 .................. 2,758,121 2,784,847
7.0%, 06/15/28 .................. 46,617 47,680
7.0%, 10/15/28 .................. 97,063 99,277
7.0%, 12/15/28 .................. 37,924,771 38,789,834
------------
229,633,795
------------
U.S. GOVERNMENT (20.9%)
U.S. Treasury:
6.0% Note, 08/15/00 ............. 38,495,000 39,288,959
6.25% Note, 04/30/01 ............ 44,000,000 45,553,772
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- ------------------
<S> <C> <C>
6.5% Note, 08/31/01 ............. $96,740,000 $101,123,580
6.5% Note, 05/31/02 ............. 51,000,000 53,852,838
5.75% Note, 08/15/03 ............ 30,945,000 32,298,844
4.25% Note, 11/15/03 ............ 20,195,000 19,929,941
6.875% Note, 05/15/06 ........... 30,435,000 34,401,076
6.125% Bond, 11/15/27 ........... 51,525,000 57,708,000
5.25% Bond, 11/15/28 ............ 19,935,000 20,433,375
------------
404,590,385
------------
UTILITY--ELECTRIC (1.4%)
Consolidated Edison, Inc.
Series 98-A
6.25%, 02/01/08 ................. 25,780,000 27,062,813
------------
TOTAL CREDIT SENSITIVE (36.8%) 712,887,558
------------
ENERGY (0.3%)
GAS
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ ............... 7,730,000 6,371,530
------------
TECHNOLOGY
ELECTRONICS (2.0%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 ........... 2,925,000 2,895,750
America Online, Inc.
4.0% Conv., 11/15/02 ............ 865,000 5,320,831
EMC Corp.
3.25% Conv., 03/15/02 ........... 525,000 1,977,937
HNC Software, Inc.
4.75% Conv., 03/01/03 ........... 1,095,000 1,204,500
Hutchinson Technology, Inc.:
6.0%, 03/15/05+ ................. 325,000 452,969
6.0%, 03/15/05 .................. 1,330,000 1,853,688
Level One Communications, Inc.:
4.0% Conv., 09/01/04+ ........... 790,000 1,151,425
4.0% Conv., 09/01/04 ............ 520,000 757,900
Micron Technology, Inc.
7.0% Conv., 07/01/04 ............ 845,000 904,150
Motorola, Inc.
6.5%, 11/15/28 .................. 9,290,000 9,385,037
Network Associates, Inc.:
Zero Coupon, 02/13/18+ .......... 2,610,000 1,601,888
Zero Coupon, 02/13/18 ........... 320,000 196,400
Photronics, Inc.
6.0% Conv., 06/01/04 ............ 1,995,000 2,119,687
SCI Systems, Inc.
5.0% Conv., 05/01/06+ ........... 1,720,000 4,091,450
Solectron Corp.
6.0% Conv., 03/01/06+ ........... 1,770,000 4,871,925
------------
38,785,537
------------
TELECOMMUNICATIONS (0.3%)
Comverse Technology, Inc.
5.75% Conv., 10/01/06+ .......... 1,605,000 2,602,106
5.75% Conv., 10/01/06 ........... 630,000 1,021,387
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 ........... 2,665,000 3,011,450
------------
6,634,943
------------
TOTAL TECHNOLOGY (2.3%) ......... 45,420,480
------------
TOTAL LONG-TERM DEBT SECURITIES (42.4%)
(Amortized Cost $788,368,107) 821,145,018
------------
</TABLE>
56
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ------------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER
Commerzbank
5.2%, due 02/04/99 .................. $ 7,575,000 $ 7,537,798
Procter & Gamble Co.
5.15%, due 02/12/99 ................. 10,000,000 9,939,917
--------------
TOTAL COMMERCIAL PAPER (0.9%) 17,477,715
--------------
TIME DEPOSITS (1.5%)
Chase Manhattan Corp.
4.5%, due 01/04/99 .................. 28,800,000 28,800,000
--------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.
4.7%, due 01/04/99 .................. 56,700,000 56,677,792
5.1%, due 01/14/99 .................. 10,000,000 9,981,656
--------------
TOTAL U.S. GOVERNMENT AGENCIES (3.4%) 66,659,448
--------------
TOTAL SHORT-TERM DEBT SECURITIES (5.8%)
(Amortized Cost $112,937,163) 112,937,163
--------------
TOTAL INVESTMENTS (100.2%)
(Cost/Amortized Cost $1,658,268,429) 1,941,246,382
OTHER ASSETS
LESS LIABILITIES (-0.2%) ............ (4,806,721)
--------------
NET ASSETS (100.0%) ................... $1,936,439,661
==============
</TABLE>
<TABLE>
<S> <C>
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
As a Percentage of Total Investments
Canada ........................... 0.1%
France ........................... 1.0
Germany .......................... 0.5
Japan ............................ 1.9
Latin America .................... 0.1
Netherlands ...................... 0.6
Scandinavia ...................... 0.6
Southeast Asia ................... 0.3
Spain ............................ 0.5
Switzerland ...................... 0.6
United Kingdom ................... 2.2
United States** .................. 90.1
Other European Countries ......... 1.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 5.8%.
+ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $30,974,585 or
1.6% of net assets.
(a) On July 15, 1998, this security defaulted on its interest payment.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
57
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS AND OTHER
INVESTMENTS:
BASIC MATERIALS
CHEMICALS (0.4%)
AGA AB (A Shares) ................... 3,400 $ 45,147
Akzo Nobel N.V. ..................... 28,000 1,274,828
Bayer AG ............................ 25,400 1,066,145
Georgia Gulf Corp. .................. 292,000 4,690,250
GP Batteries International Ltd. ..... 180,000 384,000
GP Batteries International Ltd.--
Warrants (expire 11/15/00)* ....... 5,750 2,736
Imperial Chemical Industries
PLC ............................... 15,000 130,029
Indo Gulf Corp. Ltd. (GDR)+ ......... 50,000 32,885
Ishihara Sangyo Kaisha Ltd.* ........ 14,000 22,951
Johnson Matthey PLC ................. 80,000 540,415
L'Air Liquide ....................... 1,500 275,069
Linde AG ............................ 100 60,606
Royal Group Technologies Ltd.* 10,000 221,535
Solvay SA ........................... 1,200 89,905
Sumitomo Chemical Co. Ltd. .......... 28,000 109,171
Toray Industries, Inc. .............. 29,000 151,617
UBE Industries Ltd. ................. 14,000 21,214
----------
9,118,503
----------
CHEMICALS--SPECIALTY (0.4%)
Great Lakes Chemical Corp. .......... 127,700 5,108,000
Kyowa Hakko Kogyo Co. ............... 8,000 39,557
NGK Insulators ...................... 6,000 77,466
SGL Carbon AG+ ...................... 15,000 908,191
Solutia Inc. ........................ 125,000 2,796,875
UCAR International, Inc.* ........... 5,000 89,062
----------
9,019,151
----------
METALS & MINING (0.0%)
Degussa AG .......................... 2,500 138,014
Granges AB .......................... 550 7,949
Japan Energy Corp. .................. 19,000 18,015
Randgold Resources Ltd.
(GDR)*+ ........................... 7,600 19,000
Rio Tinto Ltd. ...................... 5,800 68,787
Rio Tinto PLC ....................... 26,000 302,386
Toho Titanium ....................... 47,000 258,635
WMC Ltd. ............................ 40,700 122,699
----------
935,485
----------
PAPER (0.1%)
Amcor Ltd. .......................... 8,900 38,027
Enso Oyj (R Shares) ................. 30,000 268,291
Grupo Industrial Durango
(ADR)* ............................ 12,000 66,000
Mayr-Melnhof Karton AG .............. 20,000 934,715
Nippon Paper Industries Co. ......... 2,000 9,109
Svenka Cellulosa (Series B) ......... 3,200 69,963
UPM-Kymmene Oyj ..................... 3,292 91,678
----------
1,477,783
----------
STEEL (0.1%)
Broken Hill Proprietary Co. Ltd. 50,000 368,231
Nippon Steel Corp. .................. 170,000 308,817
NKK Corp. ........................... 85,000 57,997
Sumitomo Metal Industries ........... 224,000 256,057
----------
991,102
----------
TOTAL BASIC MATERIALS (1.0%) ...... 21,542,024
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
BUSINESS SERVICES
ENVIRONMENTAL CONTROL (1.0%)
B.U.S. Berzelius Umwelt-Service
AG ................................ 21,600 $ 336,994
Matsuda Sangyo Co. Ltd. ............. 3,000 27,381
Powerscreen International PLC ....... 160,000 300,822
Rentokil Initial PLC ................ 160,000 1,205,950
Republic Services, Inc.
(Class A)* ........................ 221,100 4,076,531
Waste Management, Inc. .............. 312,895 14,588,729
----------
20,536,407
----------
PRINTING, PUBLISHING &
BROADCASTING (4.4%)
British Sky Broadcasting Group
PLC ............................... 50,476 383,386
Cablevision Systems Corp.
(Class A)* ........................ 254,000 12,747,625
CBS Corp. ........................... 955,250 31,284,437
Comcast Corp. (Class A) SPL ......... 74,500 4,372,219
Elsevier N.V. ....................... 66,445 930,563
Fox Entertainment Group, Inc.
(Class A)* ........................ 117,800 2,967,088
Grupo Televisa S.A. (GDR)* .......... 20,000 493,750
Liberty Media Group (Class A)* 294,024 13,543,480
MediaOne Group, Inc.* ............... 121,000 5,687,000
Nippon Television Network
Corp. ............................. 1,080 318,689
Reed International PLC .............. 100,000 782,004
Schibsted ASA ....................... 14,000 176,826
Seat Pagine Gialle Spa* ............. 4,900,000 4,622,921
Star Publications BHD ............... 20,000 19,890
Tele-Communications, Inc.
(Class A)* ........................ 109,300 6,045,656
Tokyo Broadcasting System, Inc. 87,000 973,691
Toppan Printing Co. ................. 7,000 85,600
United News & Media PLC ............. 90,000 789,158
USA Networks, Inc.* ................. 19,800 655,875
Viacom, Inc. (Class B)* ............. 55,300 4,092,200
----------
90,972,058
----------
PROFESSIONAL SERVICES (0.6%)
Adecco SA ........................... 275 125,720
Apcoa Parking AG .................... 3,000 212,421
Content Beheer N.V.+ ................ 40,000 683,742
Cordiant Communications Group
PLC ............................... 200,000 349,406
Marlborough International PLC* 93,600 299,304
Meitec Corp. ........................ 34,600 864,617
Modis Professional Services, Inc.* 39,647 574,882
Nielsen Media Research, Inc. ........ 360,900 6,496,200
WPP Group PLC ....................... 260,000 1,582,227
----------
11,188,519
----------
TRUCKING, SHIPPING (0.4%)
Brambles Industries Ltd. ............ 80,000 1,948,541
Frontline Ltd.* ..................... 130,540 249,034
Frontline Ltd.--Warrants
(expire 05/11/01)* ................ 76,080 0
Irish Continental Group PLC ......... 80,000 945,922
Knightsbridge Tankers Ltd. .......... 110,700 2,303,944
Mitsui O.S.K. Lines Ltd. ............ 19,000 30,642
Nippon Yusen K.K. ................... 13,000 41,125
</TABLE>
58
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OMI Corp.* .......................... 677,900 $ 2,203,175
Peninsular & Oriental Steam
Navigation Co. .................... 10,466 123,725
-----------
7,846,108
-----------
TOTAL BUSINESS SERVICES (6.4%) 130,543,092
-----------
CAPITAL GOODS
AEROSPACE (0.2%)
British Aerospace PLC ............... 110,000 932,498
Loral Space &
Communications*+ .................. 220,000 3,918,750
Rolls-Royce ......................... 22,528 93,333
-----------
4,944,581
-----------
BUILDING & CONSTRUCTION (0.1%)
ABB AG .............................. 300 352,169
CSR Ltd. ............................ 16,900 41,318
Daito Trust Construction Co.
Ltd. .............................. 2,200 19,086
Hochtief AG ......................... 1,500 58,956
Japan Industrial Land
Development ....................... 10,000 18,786
Kaneshita Construction .............. 26,000 142,844
MacMahon Holdings Ltd. .............. 600,000 180,148
Mitsui Home Co. Ltd. ................ 20,000 92,158
Nanno Construction Co. Ltd. ......... 23,000 25,680
Nippon Denwa Shisetsu ............... 4,000 13,824
Nishimatsu Construction Co. ......... 4,000 23,394
Obayashi Corp. ...................... 12,000 57,634
Oriental Construction Co. ........... 1,900 7,307
PS Corp. ............................ 26,600 101,356
Sanyo Engineering &
Construction Co. .................. 9,000 33,017
Skanska AB (Series B) ............... 1,620 45,024
Toda Corp. .......................... 13,000 63,013
United Engineers Malaysia
BHD* .............................. 11,000 5,611
YTL Corp. BHD ....................... 16,500 15,011
-----------
1,296,336
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (1.0%)
Blue Circle Industries PLC .......... 13,338 68,796
BPB PLC ............................. 130,000 491,539
Cie de St. Gobain ................... 3,150 444,646
Dahl International AB+ .............. 36,000 355,742
Fujikura Ltd. ....................... 132,000 708,835
Furukawa Electric Co. ............... 13,000 44,351
Heidelberg Zement AG ................ 1,100 86,469
Holderbank Financiere Glarus
AG--B ............................. 80 94,845
Lafarge SA .......................... 8,000 759,996
Louisana Pacific Corp. .............. 57,000 1,043,813
Martin Marietta Materials, Inc. ..... 241,200 14,999,625
Nichiha Corp. ....................... 40,700 371,836
Portland Valderrivas SA ............. 13,200 538,700
Rexam PLC ........................... 10,205 28,356
RMC Group PLC ....................... 4,518 61,867
Taiheiyo Cement Corp. ............... 11,000 27,585
Unidare PLC ......................... 434,300 1,130,384
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Unidare PLC--Units .................. 1,700 $ 4,425
Wolseley PLC ........................ 10,088 63,782
-----------
21,325,592
-----------
ELECTRICAL EQUIPMENT (1.3%)
Daikin Industries Ltd. .............. 5,000 49,623
General Electric Co. ................ 235,000 23,984,688
General Electric Co. PLC ............ 50,000 451,316
Kinden Corp. ........................ 5,000 76,119
Schneider SA ........................ 14,000 849,092
Sumitomo Electric Industries ........ 31,000 349,145
-----------
25,759,983
-----------
MACHINERY (1.4%)
AlliedSignal, Inc. .................. 141,800 6,283,512
Amada Co. Ltd. ...................... 5,000 24,236
Asahi Diamond Industry Co. Ltd. 15,000 74,701
Cie Generale de Geophysique
SA (ADR)* ......................... 84,000 913,500
Construcciones y Auxiliar de
Ferrocarrites SA .................. 3,000 91,824
Ebara Corp. ......................... 5,000 43,110
Fanuc Ltd. .......................... 5,900 202,331
IHC Caland N.V. ..................... 17,000 706,108
Kalmar Industries AB+ ............... 10,000 106,229
Keyence Corp. ....................... 10,200 1,256,358
Mori Seiki Co. Ltd. ................. 20,000 226,850
Namura Shipbuilding ................. 7,000 13,336
Nireco .............................. 9,000 26,717
Nitta Corp. ......................... 38,600 220,278
Nitto Kohki Co. Ltd. ................ 23,600 194,488
Pall Corp. .......................... 45,000 1,139,063
Rofin-Sinar Technologies, Inc.* ..... 18,000 168,750
Siebe PLC ........................... 140,000 552,061
SMC Corp. ........................... 10,900 871,227
Sodick Co.* ......................... 110,000 233,939
Thai Engine Manufacturing
Public Co. Ltd.* .................. 100,000 25,034
United Technologies Corp. ........... 133,700 14,539,875
Vestas Wind Systems A/S* ............ 6,450 345,581
-----------
28,259,108
-----------
TOTAL CAPITAL GOODS (4.0%) ........ 81,585,600
-----------
CONSUMER CYCLICALS
AIRLINES (0.0%)
British Airways PLC ................. 45,000 303,422
Cathay Pacific Airways .............. 41,000 40,750
Japan Air Lines Co.* ................ 24,000 63,376
KLM ................................. 14,000 423,452
Virgin Express Holdings PLC
(ADR)* ............................ 20,000 160,000
-----------
991,000
-----------
APPAREL, TEXTILE (0.1%)
Carli Gry International A/S ......... 20,000 1,206,693
King Co. ............................ 46,000 61,143
PT Great River International ........ 1,709,000 58,747
Teijin Ltd. ......................... 18,000 66,354
-----------
1,392,937
-----------
AUTO RELATED (0.2%)
Autoliv, Inc.+ ...................... 19,100 686,545
Bridgestone Corp. ................... 13,000 295,481
DaimlerChrysler AG* ................. 20,100 1,996,124
</TABLE>
59
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Michelin (CGDE), (Class B) ........ 8,000 $ 319,885
Minebea Co. Ltd. .................. 43,000 493,062
NGK Spark Plug Co. ................ 14,000 142,791
-----------
3,933,888
-----------
AUTOS & TRUCKS (0.1%)
Fiat Spa .......................... 74,250 257,753
Honda Motor Co. Ltd. .............. 33,000 1,084,892
Perusahaan Otomobil Nasional ...... 9,000 9,530
PSA Peugeot Citroen ............... 570 88,210
-----------
1,440,385
-----------
FOOD SERVICES, LODGING (0.2%)
Accor SA .......................... 7,000 1,515,341
Choice Hotels Scandinavia ASA ..... 100,000 140,777
Compass Group PLC ................. 150,000 1,718,329
Fujita Kanko, Inc. ................ 3,000 26,664
Restaurant Brands New Zealand
Ltd.+ ........................... 300,000 170,602
Sanyo Pax Co. Ltd. ................ 33,000 228,090
Thistle Hotels PLC+ ............... 114,035 206,811
-----------
4,006,614
-----------
HOUSEHOLD FURNITURE,
APPLIANCES (0.5%)
Aiwa Co. Ltd. ..................... 19,000 501,728
Elamex S.A. de C.V.* .............. 70,000 253,750
Electrolux AB (Series B) .......... 5,500 94,772
Guangdong Kelon Electrical
Holdings Co. Ltd. ............... 104,000 92,626
Industrie Natuzzi Spa (ADR) ....... 30,000 746,250
Koninklijke Philips Electronics
N.V. ............................ 12,000 805,155
Rubbermaid, Inc. .................. 189,600 5,960,550
Sony Corp. ........................ 16,000 1,166,859
Toto Ltd. ......................... 5,000 40,186
-----------
9,661,876
-----------
LEISURE RELATED (2.5%)
Brass Eagle, Inc.* ................ 22,000 338,250
Canal Plus ........................ 4,000 1,091,332
Carnival Corp. (Class A) .......... 210,300 10,094,400
Cendant Corp.* .................... 434,700 8,286,469
Cyrk, Inc.* ....................... 310,600 2,329,500
Disney (Walt) Co. ................. 93,500 2,805,000
EMI Group PLC ..................... 30,000 200,659
Granada Group PLC ................. 24,000 424,279
Harley-Davidson, Inc. ............. 242,300 11,478,962
Hoyts Cinemas Group+ .............. 500,000 419,733
KTM Motorradholding AG ............ 10,000 672,892
MGM Grand, Inc.* .................. 178,500 4,841,812
Mirage Resorts, Inc.* ............. 159,300 2,379,544
Nelvana Ltd.*+ .................... 18,000 330,839
Nintendo Co. Ltd. ................. 19,600 1,901,817
Nippon Broadcasting System ........ 24,000 961,276
Resorts World BHD ................. 24,000 19,359
Sega Enterprises Ltd. ............. 2,000 44,395
SHIMANO, INC. ..................... 38,000 981,568
Tag Heuer International SA
(ADR) ........................... 50,200 357,675
The Swatch Group AG ............... 100 61,976
Thomson Travel Group PLC .......... 220,000 600,313
Toho Co. .......................... 400 54,869
Tokyo Dome Corp. .................. 3,000 16,004
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Tourism Holdings Ltd.* ............ 70,000 $ 57,131
VTech Holdings Ltd. ............... 6,000 26,177
-----------
50,776,231
-----------
PHOTO & OPTICAL (0.2%)
Essilor International ............. 4,800 1,889,257
Fuji Photo Film Co. ............... 52,000 1,935,312
Gretag Imaging Group* ............. 16,000 1,376,595
Noritsu Koki Co. Ltd. ............. 14,100 306,114
-----------
5,507,278
-----------
RETAIL--GENERAL (4.0%)
Aldeasa SA ........................ 40,000 1,570,504
BAA PLC ........................... 40,000 466,873
Boots Co. PLC ..................... 32,000 544,940
Carrefour ......................... 650 490,625
Circuit City Stores-Circuit City
Group ........................... 181,300 9,053,669
Daiei, Inc. ....................... 14,000 38,086
Dixons Group PLC .................. 120,000 1,688,130
Doshisha Co. ...................... 6,000 30,731
Genesis Direct, Inc.* ............. 225,200 1,759,375
Great Universal Stores PLC ........ 39,213 413,321
Harvey Nichols PLC+ ............... 30,600 71,279
Hennes & Mauritz AB
(B Shares) ...................... 2,500 204,428
Home Depot, Inc. .................. 115,000 7,036,563
Home Wide Corp. ................... 16,000 63,093
Japan Airport Terminal Co. Ltd. 83,000 511,165
Karstadt AG ....................... 150 78,488
Kohl's Corp.* ..................... 149,300 9,172,619
Koninklijke Ahold NV .............. 22,000 813,036
Limited, Inc. ..................... 631,125 18,381,516
Marks & Spencer PLC ............... 90,055 617,703
Marui Co. Ltd. .................... 7,000 134,914
Metro AG .......................... 2,280 179,226
Paris Miki, Inc. .................. 28,300 652,016
Pinault Printemps ................. 2,900 554,110
S.T. Dupont*+ ..................... 10,000 107,523
Sato Corp. ........................ 54,700 969,428
Smith (W.H.) Group PLC ............ 63,000 500,000
Sriwani Holdings BHD .............. 170,000 38,508
Takihyo Co. Ltd. .................. 13,000 65,547
Tandy Corp. ....................... 267,500 11,017,656
Wal-Mart Stores, Inc. ............. 175,700 14,308,569
Warehouse Group Ltd. .............. 111,200 360,096
-----------
81,893,737
-----------
TOTAL CONSUMER CYCLICALS (7.8%) 159,603,946
-----------
CONSUMER NONCYCLICALS
BEVERAGES (1.1%)
Cadbury Schweppes PLC ............. 18,792 320,485
Carlsberg `A' ..................... 900 52,322
Coca-Cola Amatil Ltd. ............. 2,000 7,451
Coca-Cola Beverages PLC* .......... 2,000 3,678
Coca-Cola Co. ..................... 150,800 10,084,750
Coca-Cola Enterprises, Inc. ....... 216,200 7,729,150
Diageo PLC ........................ 140,000 1,593,291
Fomento Economico Mexico
ADR ............................. 20,000 532,500
Kirin Brewery Co. ................. 8,000 102,082
Louis Dreyfus Citrus .............. 38,000 952,464
</TABLE>
60
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Mercian Corp. ...................... 67,000 $ 273,700
Panamerican Beverages, Inc. ........ 16,000 349,000
-----------
22,000,873
-----------
CONTAINERS (0.0%)
Toyo Seikan Kaisha ................. 3,000 50,988
-----------
DRUGS (3.2%)
Bristol-Meyers Squibb Co. .......... 92,900 12,431,181
Daiichi Pharmaceutical Co. ......... 5,000 84,581
Eisai Co. Ltd. ..................... 5,000 97,475
Forest Laboratories, Inc.
(Class A)* ....................... 84,500 4,494,344
Glaxo Wellcome PLC ................. 66,706 2,295,232
Mylan Labs Inc. .................... 120,000 3,780,000
Novartis AG ........................ 500 984,324
Novo-Nordisk A/S (B Shares) ........ 5,000 659,910
Orion-Yhtyma Oy (B Shares) ......... 71,000 1,704,351
Pfizer, Inc. ....................... 118,000 14,801,625
Sankyo Co. Ltd. .................... 57,000 1,247,585
Sanofi SA .......................... 14,000 2,304,321
Santen Pharmaceutical Co. Ltd. ..... 59,000 1,134,515
Schering Plough Corp. .............. 338,600 18,707,650
Yamanouchi Pharmaceutical Co.
Ltd. ............................. 21,000 677,359
Zeneca Group PLC ................... 14,000 609,597
-----------
66,014,050
-----------
FOODS (1.8%)
Ajinomoto Co., Inc. ................ 9,000 95,702
Avonmore Waterford Group
PLC .............................. 100,000 312,333
Barry Callebaut AG ................. 8,500 1,933,649
Campbell Soup Co. .................. 141,560 7,785,800
Fyffes PLC ......................... 1,000,000 2,230,948
Groupe Danone ...................... 2,100 601,127
Karlshamns AB+ ..................... 52,533 389,338
Koninklijke Numico N.V.+ ........... 8,000 381,277
Nestle SA .......................... 930 2,027,488
Nippon Meat Packers, Inc. .......... 4,000 64,510
Nissin Food Products Co. ........... 3,000 75,631
Nutreco Holding N.V. ............... 26,000 1,024,549
Oie Sangyo Co. Ltd. ................ 6,000 25,521
Rite Aid Corp. ..................... 266,000 13,183,625
Shiram Industrial Enterprises
Ltd. (GDR)+ ...................... 28,800 28,800
Tingyi Holdings Corp. .............. 240,000 21,685
Tyson Foods, Inc. (Class A) ........ 327,350 6,956,188
Yamakazi Baking Co. ................ 4,000 52,211
-----------
37,190,382
-----------
HOSPITAL SUPPLIES & SERVICES (2.4%)
Columbia/HCA Healthcare Corp. 891,700 22,069,575
Medtronic, Inc. .................... 202,900 15,065,325
Sun International Hotels Ltd.* ..... 137,100 6,229,481
Tenet Healthcare Corp.* ............ 204,300 5,362,875
-----------
48,727,256
-----------
RETAIL--FOOD (0.9%)
Familymart Co. ..................... 19,000 949,579
Food Lion, Inc. (Class A) .......... 499,400 5,306,125
Jusco Co. .......................... 9,000 182,233
Kroger Co.* ........................ 197,500 11,948,750
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Seven-Eleven Japan Co. Ltd. ........ 7,900 $ 637,040
Tesco PLC .......................... 200,000 569,865
-----------
19,593,592
-----------
SOAPS & TOILETRIES (1.3%)
Avon Products, Inc. ................ 244,700 10,827,975
BIC ................................ 1,200 66,553
Estee Lauder Companies
(Class A) ........................ 60,900 5,206,950
Gillette Co. ....................... 122,050 5,896,541
Kao Corp. .......................... 95,000 2,146,655
L'Oreal ............................ 1,500 1,084,176
Unilever N.V. CVA .................. 14,000 1,196,549
Unilever PLC ....................... 90,000 1,009,284
-----------
27,434,683
-----------
TOBACCO (1.6%)
Austria Tabakwerke AG .............. 20,000 1,533,410
Imperial Tobacco Group PLC ......... 40,000 428,605
Japan Tobacco, Inc. ................ 110 1,101,462
Philip Morris Cos., Inc. ........... 464,200 24,834,700
RJ Reynolds BHD .................... 80,000 63,352
Rothmans of Pall Mall BHD .......... 6,000 24,751
Seita .............................. 7,401 463,431
Swedish Match AB ................... 335,900 1,223,982
Tabacalera SA--A ................... 110,000 2,770,898
-----------
32,444,591
-----------
TOTAL CONSUMER NONCYCLICALS (12.3%) 253,456,415
-----------
CREDIT SENSITIVE
BANKS (3.5%)
ABN Amro Holding N.V. .............. 22,000 462,751
Akita Bank ......................... 27,000 115,560
Banca Commerciale Italiana ......... 35,000 241,306
Banca Nazionale del Lavoro
(BNL)* ........................... 15,403 43,037
Banca Nazionale del Lavoro
(BNL)* ........................... 229,600 686,648
Bancaria de Espana SA .............. 20,000 517,169
Banco Bilbao Vizcaya SA ............ 58,176 910,791
Banco Central
Hispanoamericano SA .............. 110,000 1,304,180
Banco Latinoamericano de
Exportaciones S.A. ............... 15,000 249,375
Banco Santander SA ................. 26,442 524,672
Bank Austria AG .................... 11,475 583,463
Bank of Ireland .................... 90,000 2,001,160
Bank of Scotland ................... 80,000 954,378
Bank of Tokyo--Mitsubishi Ltd. ..... 88,000 912,361
BankAmerica Corp. .................. 319,483 19,208,891
Banque Nationale de Paris .......... 4,450 366,382
Barclays PLC ....................... 50,000 1,078,167
BPI-SGPS, SA ....................... 26,500 899,716
Chase Manhattan Corp. .............. 41,300 2,810,981
Citigroup, Inc. .................... 419,600 20,770,200
Credit Suisse Group ................ 6,000 940,576
Dai-Ichi Kangyo Bank Ltd. .......... 59,000 314,736
Deutsche Bank AG ................... 12,000 707,687
ForeningsSparbanken AB ............. 32,000 830,065
Hang Seng Bank ..................... 52,000 464,810
HSBC Holdings PLC .................. 20,000 505,807
HSBC Holdings PLC (H.K.$) .......... 12,000 298,945
</TABLE>
61
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Istituto Bancario San Paolo di
Torino Spa ........................ 10,000 $ 176,595
Lloyds TSB Group PLC ................ 167,866 2,388,031
Malayan Banking BHD ................. 58,000 82,247
Mediobanca Spa ...................... 10,000 138,796
Mitsubishi Trust & Banking
Corp. ............................. 28,000 180,381
National Bank of Canada ............. 50,000 806,766
Nordbanken Holding AB ............... 30,000 192,694
Sakura Bank Ltd. .................... 30,000 68,852
Shizuoka Bank Ltd. .................. 42,000 519,185
Skandinaviska Enskilda Banken
(Series A) ........................ 86,720 915,858
Societe Generale .................... 4,000 647,643
Svenska Handelbanken
(Series A) ........................ 3,100 130,958
Toho Bank ........................... 49,000 203,208
UBS AG--Registered .................. 2,000 615,385
Unicredito Italiano Spa ............. 24,200 143,356
United Overseas Bank Ltd. ........... 10,000 64,242
Wells Fargo Co. ..................... 130,900 5,227,819
----------
71,205,830
----------
FINANCIAL SERVICES (3.4%)
Abbey National PLC .................. 14,314 306,514
Aiful Corp. ......................... 30,500 1,854,054
Amvescap PLC ........................ 90,000 698,188
Associates First Capital Corp.
(Class A) ......................... 163,800 6,941,025
CMAC Investment Corp. ............... 232,900 10,698,844
CMIC Finance & Securities
Public Co. Ltd.* .................. 200,000 0
Credit Saison Co. ................... 25,600 631,777
Daiwa Securities Co. Ltd. ........... 19,000 64,989
Garban PLC* ......................... 3,250 12,383
Groupe Bruxelles Lambert SA ......... 450 91,119
Hong Leong Finance Ltd. ............. 40,000 76,606
Household International, Inc. ....... 310,800 12,315,450
JCG Holdings Ltd. ................... 60,000 19,362
MBNA Corp. .......................... 746,400 18,613,350
Merrill Lynch & Co., Inc. ........... 72,100 4,812,675
Morgan Stanley Dean Witter &
Co. ............................... 123,100 8,740,100
Nichiei Co. Ltd. .................... 17,300 1,379,708
Nomura Securities Co. ............... 61,000 532,432
PMI Group, Inc. ..................... 53,800 2,656,375
Sanyo Shinpan Finance Co. Ltd. ...... 5,400 196,190
Schroders PLC ....................... 5,812 106,082
Takefuji Corp. ...................... 60 4,386
----------
70,751,609
----------
INSURANCE (3.0%)
Aegon N.V. .......................... 16,000 1,964,748
Allianz AG .......................... 9,000 3,348,335
ASR Verzekeringsgroep N.V. .......... 22,900 2,073,060
Assicurazioni Generali .............. 24,000 1,001,512
CGU PLC ............................. 21,787 341,113
Cia de Seguros Imperio, SA* ......... 171,000 1,393,812
Corporacion Mapfre .................. 42,000 1,137,771
Everest Reinsurance Holdings,
Inc. .............................. 205,000 7,982,188
Fortis AG ........................... 740 266,503
Fortis Amev N.V. .................... 18,000 1,491,453
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Gallagher (Arthur J.) & Co. ......... 128,900 $5,687,713
GIO Australia Holdings Ltd. ......... 100,000 328,433
ING Groep N.V. ...................... 26,000 1,585,281
Koa Fire & Marine Insurance
Co. Ltd. .......................... 10,000 31,103
Legal & General Group PLC ........... 23,090 299,853
Mediolanum Spa ...................... 70,000 518,597
Mitsui Marine & Fire
Insurance Co. ..................... 13,000 68,542
Pacific & Orient BHD ................ 150,000 82,873
Providian Financial Corp. ........... 268,500 20,137,500
Prudential Corp. PLC ................ 62,486 943,497
Royal & Sun Alliance Insurance
Group PLC ......................... 49,613 405,104
Sampo Insurance Co. (A Shares) 32,000 1,214,368
Schweizerische
Rueckversicherungs-Gesellschaft 500 1,305,505
SunAmerica, Inc. .................... 103,600 8,404,550
Tokio Marine & Fire
Insurance Co. ..................... 30,000 358,883
----------
62,372,297
----------
REAL ESTATE (0.3%)
Asticus AB* ......................... 64,440 632,799
Boardwalk Equities, Inc.* ........... 40,000 439,818
British Land Co. PLC ................ 8,416 62,593
Castellum AB ........................ 98,000 1,065,250
Cheung Kong Holdings Ltd. ........... 70,000 503,727
City Developments Ltd. .............. 43,000 186,333
Daibiru Corp. ....................... 17,000 108,463
DBS Land ............................ 17,000 25,036
Diligentia AB ....................... 800 5,633
Drott AB (B Shares)* ................ 1,620 14,908
Green Property PLC .................. 160,000 904,277
Land Securities PLC ................. 9,978 128,498
Lend Lease Corp. Ltd. ............... 8,200 110,540
MEPC PLC ............................ 6,773 45,077
Mitsui Fudosan ...................... 20,000 151,529
Nackebro Fastighets AB* ............. 310 3,446
New World Development Co. ........... 48,000 120,817
Singapore Land Ltd. ................. 80,000 177,454
Sumitomo Realty &
Development Co. Ltd. .............. 137,000 445,538
Sun Hung Kai Properties ............. 48,000 350,060
Unione Immobiliare Spa* ............. 60,000 31,279
Wharf Holdings ...................... 17,000 24,796
Wharf Holdings--Warrants
(expire 12/31/99)* ................ 850 0
----------
5,537,871
----------
UTILITY--ELECTRIC (0.9%)
AES Corp.* .......................... 210,300 9,962,962
British Energy PLC .................. 80,000 915,111
Cia Paranaense de
Energia-Copel (ADR) ............... 124,000 883,500
CLP Holdings LTD .................... 36,000 179,367
Edison SPA .......................... 15,000 176,580
Electrabel SA ....................... 1,290 563,465
Electricidade de Portugal SA ........ 52,000 1,145,399
Enersis S.A. (ADR) .................. 6,000 154,875
Fortum Oyj* ......................... 64,751 393,666
Gas Y Electridad SA (Series 2) ...... 5,000 496,060
Hidroelectrica del Cantabrico ....... 2,302 127,313
Kansai Electric Power Co., Inc. ..... 22,400 491,272
</TABLE>
62
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
National Grid Group PLC ................................................ 140,000 $ 1,117,517
National Power PLC ..................................................... 86,000 741,207
Powergen PLC (ADR) ..................................................... 1,250 66,875
RWE AG ................................................................. 8,000 441,644
Tenaga Nasional BHD .................................................... 85,000 122,099
Tohoku Electric Power Co., Inc. ........................................ 11,500 203,810
-----------
18,182,722
-----------
UTILITY--GAS (0.0%)
Centrica PLC* .......................................................... 100,557 202,446
Thames Water PLC ....................................................... 6,819 130,476
-----------
332,922
-----------
UTILITY--TELEPHONE (1.5%)
British Telecommunications PLC 181,984 2,741,781
Cable & Wireless PLC ................................................... 30,000 368,873
France Telecom SA ...................................................... 5,000 397,173
Frontier Corp. ......................................................... 460,000 15,640,000
Hellenic Telecommunication
Organization SA ...................................................... 20,780 553,139
Nippon Telegraph & Telephone
Corp. ................................................................ 249 1,924,041
Singapore Telecommunications
Ltd. ................................................................. 66,000 100,800
Swisscom AG* ........................................................... 8,000 3,353,992
Telecom Italia Spa ..................................................... 50,000 426,368
Telecom Italia Spa ..................................................... 150,900 949,114
Telefonica de Espana ................................................... 24,000 1,065,578
Telefonica del Peru S.A. (ADR) ......................................... 32,000 406,000
Telefonica S.A.--Bonus Rights* ......................................... 480 425
Telekom Malaysia BHD ................................................... 56,000 103,131
Telekomunikacja Polska S.A.
(GDR)* ............................................................... 192,600 982,260
Videsh Sanchar Nigam Ltd.
(GDR) ................................................................ 60,000 675,000
-----------
29,687,675
-----------
TOTAL CREDIT SENSITIVE (12.6%) 258,070,926
-----------
ENERGY
COAL & GAS PIPELINES (0.1%)
BG PLC ................................................................. 125,808 793,862
OMV AG ................................................................. 6,000 565,434
-----------
1,359,296
-----------
OIL--DOMESTIC (1.2%)
Apache Corp. ........................................................... 89,000 2,252,812
Atlantic Richfield Co. ................................................. 112,800 7,360,200
Louis Dreyfus Natural Gas
Corp.* ............................................................... 274,700 3,914,475
Tom Brown, Inc.* ....................................................... 200,000 2,006,250
USX-Marathon Group, Inc. ............................................... 331,600 9,989,450
-----------
25,523,187
-----------
OIL--INTERNATIONAL (0.4%)
British Petroleum Co. PLC .............................................. 149,481 2,232,192
Cosmo Oil Co. Ltd. ..................................................... 11,000 16,668
Gulf Indonesia Resources Ltd.* ......................................... 52,500 341,250
Mitsubishi Oil Co.* .................................................... 8,000 14,107
Nippon Oil Co. Ltd. .................................................... 22,000 76,810
Norsk Hydro ASA ........................................................ 2,100 71,007
Oil Search Ltd. ........................................................ 402,200 406,638
Repsol SA .............................................................. 15,000 798,973
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Royal Dutch Petroleum Co. .............................................. 50,788 $ 2,528,717
Total S.A.--B .......................................................... 6,470 655,161
-----------
7,141,523
-----------
OIL--SUPPLIES & CONSTRUCTION (0.3%)
Bouygues Offshore SA (ADR) ............................................. 27,000 286,875
Fracmaster Ltd. ........................................................ 214,300 627,424
Noble Drilling Corp.* .................................................. 348,300 4,506,131
Stolt Comex Seaway, S.A.* .............................................. 21,600 145,800
Stolt Comex Seaway, S.A.
(ADR)* ............................................................... 271,950 1,495,725
-----------
7,061,955
-----------
RAILROADS (0.0%)
East Japan Railway Co. ................................................. 55 307,532
Tobu Railway Co. Ltd. .................................................. 14,000 40,939
Tokyu Corp. ............................................................ 17,000 44,741
-----------
393,212
-----------
TOTAL ENERGY (2.0%) .................................................. 41,479,173
-----------
TECHNOLOGY
ELECTRONICS (5.0%)
Altera Corp.* .......................................................... 10,000 608,750
Austria Mikro Systeme
International AG+ .................................................... 1,430 53,783
Cisco Systems, Inc.* ................................................... 280,475 26,031,592
Disco Corp. ............................................................ 3,500 102,348
Electrocomponents PLC .................................................. 8,375 56,156
Fujimi, Inc. ........................................................... 21,000 729,464
Intel Corp. ............................................................ 127,100 15,069,294
Micron Technology, Inc.* ............................................... 166,300 8,408,544
Micronics Japan Co. Ltd. ............................................... 10,000 146,212
Motorola, Inc. ......................................................... 283,000 17,280,687
Murata Manufacturing Co., Ltd. ......................................... 9,000 374,036
Nikon Corp. ............................................................ 68,000 662,827
Rohm Co. Ltd. .......................................................... 15,000 1,367,745
Sankyo Engineering Co. ................................................. 700 2,996
Sanmina Corp.* ......................................................... 73,070 4,566,875
Solectron Corp.* ....................................................... 216,900 20,158,144
Sterling Commerce, Inc.* ............................................... 139,500 6,277,500
TDK Corp. .............................................................. 4,000 366,150
Tokyo Electron ......................................................... 800 30,412
Yamaichi Electronics Co. Ltd. .......................................... 8,000 129,730
Yokogawa Electric Corp. ................................................ 59,000 292,778
-----------
102,716,023
-----------
OFFICE EQUIPMENT (3.8%)
Canon, Inc. ............................................................ 15,000 321,001
Ceridian Corp.* ........................................................ 343,400 23,973,613
Compaq Computer Corp. .................................................. 375,900 15,764,306
Dell Computer Corp.* ................................................... 297,600 21,780,600
Fujitsu Ltd. ........................................................... 28,000 373,416
Oce--Van De Grinten N.V. ............................................... 1,840 66,138
Policy Management Systems
Corp.* ............................................................... 309,600 15,634,800
Ricoh Elemex Corp. ..................................................... 9,000 69,942
-----------
77,983,816
-----------
OFFICE EQUIPMENT SERVICES (4.0%)
Computer Sciences Corp. ................................................ 83,000 5,348,313
Data Communication System Co. 19,800 404,422
First Data Corp. ....................................................... 482,600 15,292,388
</TABLE>
63
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Frontec AB (B Shares)* ................................................. 170,000 $ 728,654
Fuji Soft ABC, Inc. .................................................... 18,600 947,718
HBO & Co. .............................................................. 354,321 10,164,584
Intuit, Inc.* .......................................................... 50,000 3,625,000
Mettler--Toledo International,
Inc.* ................................................................ 95,500 2,679,969
Microsoft Corp.* ....................................................... 122,600 17,003,087
Misys PLC .............................................................. 220,000 1,602,359
Nippon System Development .............................................. 42,300 1,311,918
Novell, Inc.* .......................................................... 1,211,900 21,965,687
-------------
81,074,099
-------------
TELECOMMUNICATIONS (5.5%)
AirTouch Communications, Inc.* 190,000 13,703,750
America Online, Inc. ................................................... 160,800 25,728,000
Clearnet Communications, Inc.
(Class A)* ........................................................... 238,000 1,933,750
Corecomm Ltd.* ......................................................... 3,600 56,700
DDI Corp. .............................................................. 98 364,732
E.R.G. Limited ......................................................... 1,050,000 656,254
Energis PLC* ........................................................... 75,000 1,672,157
Ericsson LM (ADR) ...................................................... 49,400 1,177,680
Esprit Telecom Group PLC
(ADR)* ............................................................... 65,800 3,076,150
Filtronic Comtek PLC ................................................... 250,800 2,524,608
Fore Systems, Inc.* .................................................... 297,400 5,446,138
Global TeleSystems Group, Inc.* 132,900 7,409,175
Helsinki Telephone Corp. ............................................... 38,100 2,264,054
Hong Kong Telecommunications 88,800 155,312
Hyperion Telecommunications,
Inc. (Class A)* ...................................................... 173,000 2,616,625
Keppel Telecommunications &
Transportation Ltd. .................................................. 160,000 105,697
Mannesmann AG .......................................................... 3,500 404,816
MCI WorldCom, Inc.* .................................................... 140,300 10,066,525
Mobistar SA* ........................................................... 12,000 602,256
NetCom Systems AB (B Shares)* 8,000 326,097
Nextel Communications, Inc.
(Class A)* ........................................................... 281,300 6,645,713
NTL, Inc.* ............................................................. 135,200 7,630,350
Orange PLC* ............................................................ 150,000 1,743,286
Powertel Ltd.* ......................................................... 300,000 187,501
SK Telecom Co. Ltd. (ADR) .............................................. 50,000 509,375
Tele-Communications TCI
Ventures Group (Class A)* ............................................ 626,500 14,761,906
Vodafone Group PLC ..................................................... 106,700 1,732,708
WinStar Communications, Inc.* .......................................... 2,829 110,331
-------------
113,611,646
-------------
TOTAL TECHNOLOGY (18.3%) ............................................. 375,385,584
-------------
DIVERSIFIED
MISCELLANEOUS (1.2%)
Brierley Investments Ltd. .............................................. 14,000 3,170
Crean (James) PLC--Units ............................................... 40,000 50,568
Damskibs AS (Class B) .................................................. 25 174,798
GKN PLC ................................................................ 10,650 141,316
Industrias CH S.A. (B Shares)* ......................................... 80,000 142,574
Lagardere S.C.A. ....................................................... 2,100 89,230
Montedison Spa ......................................................... 74,000 98,234
Pilkington PLC ......................................................... 17,397 17,367
Ratin A/S-B ............................................................ 385 81,664
Sime Darby BHD ......................................................... 161,000 129,274
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Smiths Industries PLC .................................................. 5,559 $ 79,313
Sophus Berendsen-B ..................................................... 385 13,369
Suez Lyonnaise des Eaux ................................................ 4,200 862,617
Tomkins PLC ............................................................ 37,500 176,887
Tyco International Ltd. ................................................ 273,100 20,601,981
Vivendi ................................................................ 10,930 2,835,406
Williams Holdings PLC .................................................. 9,756 55,393
-------------
TOTAL DIVERSIFIED (1.2%) ............................................. 25,553,161
-------------
TOTAL COMMON STOCKS AND OTHER
INVESTMENTS (65.6%)
(Cost $1,054,012,197) ................................................ 1,347,219,921
-------------
PREFERRED STOCKS:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.0%)
ProSieben Media AG ..................................................... 23,000 1,101,350
-------------
TRUCKING, SHIPPING (0.1%)
CNF Trust I
5.0% Conv. Series A .................................................. 25,400 1,444,625
-------------
TOTAL BUSINESS SERVICES (0.1%) 2,545,975
-------------
CAPITAL GOODS (0.1%)
AEROSPACE
Loral Space & Communications
6.0% Conv.+ .......................................................... 15,300 806,119
-------------
CONSUMER CYCLICALS
AIRLINES (0.0%)
Continental Airlines Finance
Trust 8.5% Conv. ..................................................... 3,350 231,987
-------------
LEISURE RELATED (0.1%)
Royal Caribbean Cruises Ltd.
7.25% Series A ....................................................... 18,500 2,127,500
Village Roadshow Ltd. .................................................. 10,000 12,500
-------------
2,140,000
-------------
TOTAL CONSUMER CYCLICALS (0.1%) 2,371,987
-------------
CONSUMER NONCYCLICALS
CONTAINERS (0.0%)
Sealed Air Corp.
$2.0 Conv. ........................................................... 10,300 534,312
-------------
HOSPITAL SUPPLIES & SERVICES (0.0%)
Fresenius AG ........................................................... 1,000 210,021
-------------
TOTAL CONSUMER NONCYCLICALS (0.0%) 744,333
-------------
CREDIT SENSITIVE (0.1%)
UTILITY--ELECTRIC
AES Trust I
5.375% Conv., Series A ............................................... 32,800 2,279,600
-------------
TECHNOLOGY
ELECTRONICS (0.1%)
L&H Capital Trust I
4.75% Conv.+ ......................................................... 25,900 819,088
Times Mirror Co. ....................................................... 11,700 652,275
-------------
1,471,363
-------------
TELECOMMUNICATIONS (0.6%)
AirTouch Communications, Inc.
4.25% Conv., Series C ................................................ 17,200 1,771,600
ICG Communications, Inc.
6.75% Conv. .......................................................... 11,800 628,350
</TABLE>
64
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -------------
<S> <C> <C>
Intermedia Communications, Inc.:
7.0% Conv.+ ..................... 15,200 $ 388,550
7.0% Conv. Series D ............. 20,900 534,256
IXC Communications, Inc.:
6.75% Conv. ..................... 5,700 188,813
6.75% Conv.+ .................... 23,600 781,750
Nextel Strypes Trust ..............
7.25% Conv. ..................... 68,700 1,408,350
Nokia Oyj (A Shares) .............. 38,184 4,642,932
WinStar Communications, Inc.
7.0% Conv.+ ..................... 43,500 2,066,250
----------
12,410,851
----------
TOTAL TECHNOLOGY (0.7%) ......... 13,882,214
----------
TOTAL PREFERRED STOCKS (1.1%)
(Cost $19,329,055) .............. 22,630,228
----------
PRINCIPAL
AMOUNT
---------
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES
PRINTING, PUBLISHING &
BROADCASTING (0.2%)
Clear Channel Communications, Inc.
2.625% Conv., 04/01/03 .......... $ 680,000 737,800
Mail-Well, Inc. ...................
5.0% Conv., 11/01/02 ............ 640,000 576,000
P-Com, Inc.:
4.25% Conv., 11/01/02+ .......... 1,065,000 500,550
4.25% Conv., 11/01/02 ........... 560,000 263,200
Tele-Communications, Inc.
4.5%, 02/15/06 .................. 1,760,000 1,819,400
----------
3,896,950
----------
PROFESSIONAL SERVICES (0.0%)
Personnel Group of America:
5.75% Conv., 07/01/04+ .......... 295,000 341,462
5.75% Conv., 07/01/04 ........... 570,000 659,775
----------
1,001,237
----------
TOTAL BUSINESS SERVICES (0.2%) 4,898,187
----------
CAPITAL GOODS (0.1%)
AEROSPACE
Orbital Sciences Corp.:
5.0% Conv., 10/01/02+ ........... 545,000 921,050
5.0% Conv., 10/01/02 ............ 205,000 346,450
----------
1,267,500
----------
CONSUMER CYCLICALS
AUTO RELATED (0.3%)
Federal Mogul Corp.
7.75%, 07/01/06 ................. 6,775,000 6,924,863
----------
RETAIL--GENERAL (0.1%)
Office Depot, Inc.
Zero Coupon, 11/01/08 ........... 1,555,000 1,345,075
----------
TOTAL CONSUMER CYCLICALS (0.4%) 8,269,938
----------
CONSUMER NONCYCLICALS
DRUGS (0.3%)
MedImmune, Inc.
7.0% Conv., 07/01/03 ............ 775,000 3,917,625
7.0% Conv. Sub. Note, 07/01/03+ 280,000 1,415,400
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- -------------
<S> <C> <C>
Quintiles Transnational Corp.:
4.25% Conv., 05/31/00+ ............. $ 460,000 $ 629,050
4.25% Conv., 05/31/00 .............. 590,000 806,825
----------
6,768,900
----------
HOSPITAL SUPPLIES & SERVICES (0.4%)
Alternative Living Services Ltd.
5.25% Conv., 12/15/02 .............. 905,000 1,153,875
Beckman Coulter, Inc.
7.45%, 03/04/08+ ................... 3,850,000 3,862,166
FPA Medical Management, Inc.
6.5% Conv., 12/15/01 (a)+ .......... 925,000 4,625
RES-Care, Inc.:
6.0% Conv., 12/01/04+ .............. 820,000 1,137,237
6.0% Conv., 12/01/04 ............... 250,000 346,719
Sunrise Assisted Living, Inc.
5.5% Conv., 06/15/02 ............... 545,000 813,413
----------
7,318,035
----------
MEDIA & CABLE (0.6%)
Time Warner, Inc.
9.125%, 01/15/13 ................... 10,250,000 12,976,090
----------
TOTAL CONSUMER NONCYCLICALS (1.3%) 27,063,025
----------
CREDIT SENSITIVE
ASSET BACKED (0.4%)
Chase Credit Card Master Trust
6.0%, 08/15/05 ..................... 8,000,000 8,110,000
----------
BANKS (1.3%)
Citicorp
6.375%, 11/15/08 ................... 10,470,000 10,861,578
Fuji Bank Ltd.
9.87%, 12/31/49+ ................... 7,000,000 5,110,000
Grupo Financiero Banorte
Zero Coupon, 12/05/02 .............. 20,800 2,102
St. George Bank Ltd.
7.15%, 10/15/05+ ................... 9,525,000 9,898,094
----------
25,871,774
----------
MORTGAGE RELATED (6.2%)
Federal Home Loan Mortgage
Corp.:
GOLD 7.0%, 09/01/11 ................ 6,976,105 7,128,708
7.0%, 01/01/12 ..................... 3,271,178 3,342,735
7.5%, 04/01/28 ..................... 5,214,962 5,353,487
Federal National Mortgage
Association:
6.5%, 01/01/11 ..................... 670,679 679,692
6.0%, 04/01/11 ..................... 9,545,134 9,557,065
6.5%, 09/01/11 ..................... 6,470,705 6,557,658
7.0%, 05/01/26 ..................... 1,904,303 1,941,199
7.0%, 08/01/26 ..................... 382,443 389,853
7.0%, 09/01/27 ..................... 739,951 754,287
7.0%, 01/01/28 ..................... 4,127,913 4,207,892
6.5%, 03/01/28 ..................... 2,836,658 2,852,614
6.5%, 09/01/28 ..................... 1,985,896 1,997,067
6.5%, 10/01/28 ..................... 2,976,651 2,993,394
8.0% 30 Year TBA, 12/01/28 ......... 8,300,000 8,593,986
Government National Mortgage
Association:
7.0%, 07/15/27 ..................... 3,532,203 3,612,773
</TABLE>
65
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
7.5%, 09/15/27 ..................... $ 72 $ 74
7.0%, 02/15/28 ..................... 12,586,489 12,873,587
6.5%, 03/15/28 ..................... 17,417,945 17,586,725
7.0%, 05/15/28 ..................... 11,971,618 12,234,998
6.5%, 07/15/28 ..................... 4,451,714 4,494,851
7.0%, 12/15/28 ..................... 20,100,000 20,558,481
--------------
127,711,126
--------------
U.S. GOVERNMENT (10.0%)
U.S. Treasury:
6.0% Note, 08/15/00 ................ 28,025,000 28,603,016
6.25% Note, 04/30/01 ............... 43,910,000 45,460,594
6.5% Note, 08/31/01 ................ 22,775,000 23,807,004
6.5% Note, 05/31/02 ................ 35,050,000 37,010,627
5.75% Note, 08/15/03 ............... 1,550,000 1,617,812
4.25% Note, 11/15/03 ............... 21,765,000 21,479,334
5.625% Note, 05/15/08 .............. 5,800,000 6,187,875
6.125% Bond, 11/15/27 .............. 22,985,000 25,743,200
5.25% Bond, 11/15/28 ............... 14,620,000 14,985,500
--------------
204,894,962
--------------
UTILITY--ELECTRIC (0.3%)
Texas Utilities Co. (Series C)
6.375%, 01/01/08 ................... 6,900,000 7,058,341
--------------
TOTAL CREDIT SENSITIVE (18.2%) 373,646,203
--------------
ENERGY (0.1%)
GAS
RAS Laffan Liquid Natural Gas
8.294%, 03/15/14+ .................. 3,500,000 2,884,910
--------------
TECHNOLOGY
ELECTRONICS (1.7%)
Amkor Technologies, Inc.
5.75% Conv., 05/01/03 .............. 2,435,000 2,410,650
America Online, Inc.
4.0% Conv., 11/15/02 ............... 720,000 4,428,900
EMC Corp.
3.25% Conv., 03/15/02 .............. 435,000 1,638,862
HNC Software, Inc.
4.75% Conv., 03/01/03 .............. 920,000 1,012,000
Hutchinson Technology, Inc.:
6.0%, 03/15/05+ .................... 405,000 564,469
6.0%, 03/15/05 ..................... 970,000 1,351,938
Level One Communications:
4.0% Conv., 09/01/04+ .............. 670,000 976,525
4.0% Conv., 09/01/04 ............... 400,000 583,000
Micron Technology, Inc.
7.0% Conv., 07/01/04 ............... 700,000 749,000
Motorola, Inc.
6.5%, 11/15/28 ..................... 10,300,000 10,405,369
Network Associates, Inc.:
Zero Coupon, 02/13/18+ ............. 2,115,000 1,298,081
Zero Coupon, 02/13/18 .............. 315,000 193,331
Photronics, Inc.
6.0% Conv., 06/01/04 ............... 1,485,000 1,577,813
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------------------- -----------------
<S> <C> <C>
SCI Systems, Inc.
5.0% Conv., 05/01/06+ .............. $1,430,000 $ 3,401,612
Solectron Corp.
6.0% Conv., 03/01/06+ .............. 1,470,000 4,046,175
--------------
34,637,725
--------------
TELECOMMUNICATIONS (0.3%)
Comverse Technology, Inc.:
5.75% Conv., 10/01/06+ ............. 1,295,000 2,099,519
5.75% Conv., 10/01/06 .............. 555,000 899,795
Global TeleSystems Group, Inc.
5.75% Conv., 07/01/10 .............. 2,215,000 2,502,950
--------------
5,502,264
--------------
TOTAL TECHNOLOGY (2.0%) ............ 40,139,989
--------------
TOTAL LONG-TERM DEBT SECURITIES (22.3%)
(Amortized Cost $440,261,149) 458,169,752
--------------
SHORT-TERM DEBT SECURITIES:
BANKERS ACCEPTANCES (0.6%)
Chase Manhattan Corp.
5.07%, due 02/19/99 ................ 12,744,352 12,656,406
--------------
COMMERCIAL PAPER
National Rural Utilities Finance
Corp.
5.12%, due 02/16/99 ................ 10,000,000 9,934,577
Suntrust Bank
5.54%, due 01/29/99 ................ 15,000,000 14,935,601
--------------
TOTAL COMMERCIAL PAPER (1.2%) 24,870,178
--------------
TIME DEPOSITS
Chase Manhattan Corp.
4.5%, due 01/04/99 ................. 57,700,000 57,700,000
First National Bank Chikago
4.875%, due 01/04/99 ............... 60,000,000 59,999,999
--------------
TOTAL TIME DEPOSITS (5.7%) ......... 117,699,999
--------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage
Corp.:
4.7%, due 01/04/99 ................. 49,100,000 49,080,768
5.1%, due 01/14/99 ................. 20,000,000 19,963,312
--------------
TOTAL U.S. GOVERNMENT AGENCIES (3.4%) 69,044,080
--------------
TOTAL SHORT-TERM DEBT SECURITIES (10.9%)
(Amortized Cost $224,270,663) 224,270,663
--------------
TOTAL INVESTMENTS (99.9%)
(Cost/Amortized Cost $1,737,873,064) 2,052,290,564
OTHER ASSETS
LESS LIABILITIES (0.1%) ............ 2,809,955
--------------
NET ASSETS (100.0%) .................. $2,055,100,519
==============
</TABLE>
66
<PAGE>
THE HUDSON RIVER TRUST
ALLIANCE GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
<TABLE>
<CAPTION>
<S> <C>
DISTRIBUTION OF INVESTMENTS BY GLOBAL
REGION
As a Percentage of Total Investments
Canada ........................ 0.2%
France ........................ 1.0
Germany ....................... 0.5
Japan ......................... 2.4
Latin America ................. 0.2
Netherlands ................... 0.9
New Zealand & Australia ....... 0.7
Scandinavia ................... 1.1
Southeast Asia ................ 0.3
Spain ......................... 0.6
Switzerland ................... 0.7
United Kingdom ................ 2.7
United States** ............... 86.9
Other European Countries ...... 1.8
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing.
** Includes Short-Term Debt Securities of 10.9%.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998, these securities amounted to $52,823,751 or
2.6% of net assets.
(a) On July 15, 1998, this security defaulted on its interest payment.
Glossary:
ADR--American Depository Receipt
GDR--Global Depository Receipt
See Notes to Financial Statements.
67
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
1. Organization and Significant Accounting Policies
The Hudson River Trust (the "Trust") (successor to The Hudson River Fund,
Inc., a Maryland corporation organized in 1984) was formed as a Massachusetts
business trust on July 10, 1987 and is registered under the Investment Company
Act of 1940 (the "1940 Act"), as amended, as an open-end management investment
company. The Trust issues shares of beneficial interest currently divided among
fourteen Portfolios (the "Portfolios"): Alliance Money Market, Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High Yield,
Alliance Growth and Income, Alliance Equity Index, Alliance Common Stock,
Alliance Global, Alliance International, Alliance Aggressive Stock, Alliance
Small Cap Growth, Alliance Conservative Investors, Alliance Balanced and
Alliance Growth Investors. Effective October 2, 1996, the Trust made available
a second class of shares, Class IB, for each of the Trust's Portfolios. In
connection with the Class IB shares offering, the existing class of shares was
redesignated Class IA. The Class IB shares are subject to distribution fees
imposed under a distribution plan (the "Distribution Plan") adopted pursuant to
Rule 12b-1 under the 1940 Act. Under the Trust's multiple class distribution
system, both classes of shares have identical voting, dividend, liquidation,
and other rights, other than the payment of distribution fees under the
Distribution Plan.
Class IA shares are offered to separate accounts of The Equitable Life
Assurance Society of the United States ("Equitable"), a wholly-owned subsidiary
of The Equitable Companies Incorporated, and to separate accounts of other
insurance companies unaffiliated with Equitable. Class IB shares are offered to
separate accounts of Equitable.
The investment objectives of each Portfolio are as follows:
Alliance Money Market Portfolio -- High level of current income, preserve
its assets and maintain liquidity. The Portfolio pursues this objective by
investing in primarily high quality U.S. dollar denominated money market
instruments.
Alliance Intermediate Government Securities Portfolio -- High current
income consistent with relative stability of principal through investment
primarily in debt securities issued or guaranteed as to principal and interest
by the U.S. Government or any of its agencies or instrumentalities.
Alliance Quality Bond Portfolio -- High current income consistent with
preservation of capital by investing primarily in investment grade fixed income
securities. The Portfolio reserves the right to invest in convertible debt
securities, preferred stocks and dividend-paying common stocks.
Alliance High Yield Portfolio -- High return by maximizing current income
and, to the extent consistent with that objective, capital appreciation. The
Portfolio pursues this objective by investing primarily in a diversified mix of
high yield, fixed income securities involving greater volatility of price and
risk of principal and income than high quality fixed income securities. The
medium and lower quality debt securities in which the Portfolio may invest are
known as "junk bonds."
Alliance Growth and Income Portfolio -- High total return through a
combination of current income and capital appreciation by investing primarily
in income-producing common stocks and securities convertible into common
stocks.
Alliance Equity Index Portfolio -- Total return before expenses that
approximates the total return performance of the Standard & Poor's 500 Index,
including reinvestment of dividends, at a risk level consistent with that of
the Index.
Alliance Common Stock Portfolio -- Long-term growth of its capital and
increase income. The Portfolio pursues this objective by investing primarily in
common stock and other equity-type instruments.
Alliance Global Portfolio -- Long-term growth of capital. The Portfolio
pursues this objective by investing primarily in equity securities of
non-United States companies as well as United States issuers.
68
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
Alliance International Portfolio -- Long-term growth of capital by
investing primarily in a diversified portfolio of equity securities selected
principally to permit participation in non-United States companies with
prospects for growth.
Alliance Aggressive Stock Portfolio -- Long-term growth of capital. The
Portfolio pursues this objective by investing primarily in common stocks and
other equity-type securities issued by quality small and intermediate sized
companies with strong growth prospects.
Alliance Small Cap Growth Portfolio -- Long-term growth of capital. The
Portfolio pursues this objective by investing primarily in common stocks and
other equity-type securities issued by smaller-sized companies with strong
growth potential.
Alliance Conservative Investors Portfolio -- High total return without, in
the investment adviser's opinion, undue risk to principal. The Portfolio
pursues this objective by investing in a diversified mix of publicly traded
equity and debt securities.
Alliance Balanced Portfolio -- High return through both appreciation of
capital and current income. The Portfolio pursues this objective by investing
in a diversified portfolio of publicly traded equity and debt securities and
short-term money market instruments.
Alliance Growth Investors Portfolio -- Highest total return consistent
with the investment adviser's determination of reasonable risk. The Portfolio
pursues this objective by investing in a diversified mix of publicly traded
equity and fixed income securities, including at times common stocks issued by
intermediate and small-sized companies and at times fixed income securities
that are medium and lower quality debt securities known as "junk bonds."
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
The following is a summary of the significant accounting policies of the
Trust:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are valued
at the last sale price or, if there is no sale, at the latest available bid
price. Other unlisted stocks are valued at their last sale price or, if no
reported sale during the day, at a bid price estimated by a broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage backed and asset backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quotes will be obtained from a
broker and converted to a price.
Purchased options, including options on futures, are valued at their last
bid price. Written options are valued at their last asked price.
Over-the-counter written options are valued using prices provided by brokers.
Long-term corporate bonds may be valued on the basis of prices provided by
a pricing service when such prices are believed to reflect the fair market
value of such securities. The prices provided by a pricing service take into
account many factors, including institutional size, trading in similar groups
of securities and any developments related to specific securities; however,
when such prices are not available, such bonds are valued at a bid price
estimated by a broker.
69
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities are valued at representative
quoted prices.
Foreign securities not traded directly, or in American Depository Receipt
(ADR) or similar form in the United States, are valued at representative quoted
prices in the currency of the country of origin.
Except for the Alliance Money Market Portfolio, short-term debt securities
which mature in 60 days or less are valued at amortized cost, which
approximates market value. Short-term debt securities which mature in more than
60 days are valued at representative quoted prices. Short-term debt securities
held in the Alliance Money Market Portfolio are valued at representative quoted
prices regardless of the length of maturity.
Futures and forward contracts are valued at their last sale price or, if
there is no sale, at the latest available bid price.
Other securities, including restricted securities, and assets for which
market quotations are not readily available or for which valuation cannot be
provided, are valued at "fair value" as determined in good faith by the
Valuation Committee of the Board of Trustees.
Securities transactions are recorded on the trade date net of brokerage
fees, commissions, and transfer fees.
Interest income (including amortization of premium and accretion of
discount on securities using the effective yield method) is accrued daily.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the related investments sold.
All income earned and expenses incurred by the Portfolios are borne on a
pro-rata basis by each outstanding class of shares, based on the proportionate
interest in each Portfolio represented by the net assets of such class.
Expenses of the Trust are charged to each Portfolio in proportion to net
assets.
Under a deferred compensation plan, the Trust owes several Trustees the
payment of all or part of the fees payable for their services. Such amounts are
reflected in the Statements of Assets and Liabilities.
The Board of Trustees has approved the lending of portfolio securities
through its custodian bank, Chase Manhattan Bank ("Chase"), acting as lending
agent, to certain broker-dealers in exchange for negotiated lenders' fees. Any
such loan of portfolio securities will be continuously secured by collateral at
least equal to the value of the securities loaned. All loans will be
collateralized in the form of cash or U.S. Government securities. Chase invests
the cash collateral in short-term investments and retains a portion of the
interest earned. Chase will indemnify the Portfolios from any loss resulting
from a borrower's failure to return a loaned security when due. The following
table shows the value of securities loaned and collateral received at December
31, 1998, and the security loan fees received, net of rebates paid, for the
year ended December 31, 1998. Such net fees are included in interest income in
the accompanying Statements of Operations.
<TABLE>
<CAPTION>
VALUE OF VALUE OF SECURITY LOAN
PORTFOLIO SECURITIES LOANED COLLATERAL RECEIVED* FEES RECEIVED
- ----------------------------------------------------- ------------------- ---------------------- --------------
<S> <C> <C> <C>
Alliance Intermediate Government Securities ......... $ 55,861,878 $ 57,413,825 $ 125,806
Alliance Quality Bond ............................... 83,075,859 85,255,743 288,741
Alliance Growth and Income .......................... 72,527,235 73,317,420 114,554
Alliance Equity Index ............................... 150,848,887 153,710,640 186,342
Alliance Common Stock ............................... 616,945,987 622,787,758 1,460,586
Alliance Global ..................................... 65,942,264 68,139,226 550,844
Alliance International .............................. 11,817,454 12,321,470 99,893
Alliance Aggressive Stock ........................... 383,627,804 386,886,300 1,985,589
Alliance Conservative Investors ..................... 86,716,143 89,252,161 282,914
Alliance Balanced ................................... 438,340,537 452,567,157 1,352,818
Alliance Growth Investors ........................... 265,482,794 272,153,386 1,093,954
</TABLE>
- ----------
* Including U.S. Government securities valued at $38,861,005, $34,823,220,
$4,879,000, $35,900,535, $101,682,362, and $55,245,737 for the Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance
Global, Alliance Conservative Investors, Alliance Balanced and Alliance
Growth Investors Portfolios, respectively.
70
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
The books and records of the Trust are kept in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the bid price last quoted
by a composite list of major U.S. banks at the following dates:
(i) market value of investment securities, other assets and
liabilities--at the valuation date.
(ii) purchase and sales of investment securities, income and expenses--at
the date of such transactions.
The Portfolios do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Net currency gains or losses realized and unrealized as a result of
differences between interest, dividends and foreign withholding taxes recorded
on the Portfolio's books and the U.S. dollar equivalent amount actually
received or paid are presented under foreign currency transactions in the
realized and unrealized gains and losses section of the Statements of
Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its net investment income and net realized capital gains
to shareholders of each Portfolio. Therefore, no Federal income tax provision
is required. Dividends from net investment income are declared and distributed
quarterly; distributions from net realized short-term and long-term capital
gains are declared and distributed at least annually to the shareholders of the
Portfolios to which such gains are attributable. All dividends and
distributions are reinvested in additional full and fractional shares of the
related Portfolios. All dividends and distributions are distributed on a tax
basis and as such, the amounts may differ from financial statement investment
income and realized capital gains.
Options Written:
All Portfolios (except for the Alliance Money Market and Alliance Equity
Index Portfolios) may write (sell) covered options as a hedge to provide
protection against adverse movements in the price of securities in the
portfolio or to enhance investment performance. When a Portfolio writes an
option, an amount equal to the premium received by the Portfolio is recorded as
a liability and is subsequently adjusted on a daily basis to the current market
price of the option written. Premiums received from writing options which
expire unexercised are realized as gains on the expiration date. In writing
options, a Portfolio must assume that the option may be exercised at any time
prior to the expiration of its obligation as a writer, and that in such
circumstances the net proceeds of the sale or cost of purchase of the
underlying securities pursuant to the call or put option may be substantially
below or above the prevailing market price. A Portfolio also has the additional
risk of not being able to enter into a closing purchase transaction if a liquid
secondary market does not exist and bears the risk of unfavorable changes in
the price of the financial instruments underlying the options.
Futures and Forward Contracts:
Futures and forward contracts are agreements to buy or sell a security for
a set price in the future. A Portfolio may buy or sell futures and forward
contracts for the purpose of protecting its portfolio securities against future
changes in interest rates which might adversely affect the value of the
Portfolio's securities or the price of securities that it intends to purchase
at a later date. Initial margin deposits are made upon entering into futures
contracts and can be either in cash or U.S. Treasury securities. During the
period the futures and forward contracts are open, changes in the market price
of the contract are recognized as unrealized gains or losses by
"marking-to-market" at the end of each trading day. Variation margin payments
on futures contracts are received or made, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Portfolio
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and the Portfolio's basis in the
contract. Should interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the futures and forward contracts and may
incur a loss. The use of futures and forward contracts transactions involves
the risk of imperfect correlation in movements in the price of futures and
forward contracts, interest rates and the underlying hedged assets.
71
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
Limitations on Market and Credit Risk:
Written options, futures and forward contracts involve elements of both
market and credit risk in excess of the amounts reflected in the Statements of
Assets and Liabilities. The risk involved in writing an option on a security is
that, if the option is exercised, the underlying security is then purchased or
sold by the Portfolio at the contract price, which could be disadvantageous
relative to the market price. The contract amounts of these futures and forward
contracts reflect the extent of the Portfolio's exposure to off-balance sheet
risk. The Portfolio bears the market risk which arises from any changes in
security values. The credit risk for futures contracts is limited to failure to
trade or exercise the futures contracts purchased through the exchange or board
of trade which acts as the counterparty to the Portfolio's futures
transactions. Forward contracts are entered into directly with the counterparty
and not through an exchange and can be terminated only by agreement of both
parties to the contract. There is no daily margin settlement and the Portfolio
is exposed to the risk of default by the counterparty.
Statement of Position 93-2:
For the year ended December 31, 1998, in conformity with Statement of
Position 93-2 Determination, Disclosure and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies, the reclassification arising from current book/tax differences
resulted in increases (decreases) to the components of net assets as follows:
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE ALLIANCE ALLIANCE
GOVERNMENT QUALITY ALLIANCE EQUITY ALLIANCE ALLIANCE
SECURITIES BOND HIGH YIELD INDEX COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- ------------- ----------- ----------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Undistributed (overdistributed) net
investment income ....................... $ 1,558 $ 101,980 $ 197,552 $ 3,951 $ (15,541,411) $ 1,533,285
Accumulated net realized gain (loss) ..... (1,558) (101,980) (197,552) (3,951) 15,541,411 (1,533,285)
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE
ALLIANCE AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
INTERNATIONAL STOCK GROWTH INVESTORS BALANCED INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- ------------- -------------- --------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Paid-in capital .......................... $ (2,256,875) $ -- $ (168,661) $ -- $ -- $ 64,483
Undistributed (overdistributed) net
investment income ....................... 2,913,186 9,723,281 27,043 (173,812) (1,175,974) (105,678)
Accumulated net realized gain (loss) ..... (656,311) (9,723,281) 141,618 173,812 1,175,974 41,195
</TABLE>
Net capital and net currency losses incurred after October 31 and within
the taxable year are deemed to arise on the first day of the Portfolio's next
taxable year. For the period from November 1, 1998 to December 31, 1998 certain
Portfolios incurred and elected to defer until January 1, 1999 for U.S. Federal
income tax purposes net capital and net currency losses of approximately:
<TABLE>
<CAPTION>
CAPITAL CURRENCY
PORTFOLIO LOSSES LOSSES
- ----------------------------------- ------------- ----------
<S> <C> <C>
Alliance Quality Bond ............. $ 1,114,087 $ --
Alliance High Yield ............... 35,405,973 --
Alliance Common Stock ............. 4,742,342 26,979
Alliance Global ................... -- 435,898
Alliance Small Cap Growth ......... 2,835,065 --
Alliance Balanced ................. -- 106,329
Alliance Growth Investors ......... -- 101,198
</TABLE>
72
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
2. Management of the Trust
Alliance Capital Management L.P. ("Alliance"), a publicly traded limited
partnership, indirectly majority-owned by Equitable, is the investment adviser.
Under the terms of an Investment Advisory Agreement, Alliance receives fees
from each Portfolio at the following rates:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS
----------------------------------------------------------------------
FIRST NEXT NEXT NEXT
PORTFOLIO $750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
- ------------------------------------------------- -------------- -------------- ------------ -------------- -----------
<S> <C> <C> <C> <C> <C>
Alliance Money Market ........................... .350% .325% .300% .280% .270%
Alliance Intermediate Government Securities ..... .500% .475% .450% .430% .420%
Alliance Quality Bond ........................... .525% .500% .475% .455% .445%
Alliance High Yield ............................. .600% .575% .550% .530% .520%
Alliance Growth and Income ...................... .550% .525% .500% .480% .470%
Alliance Equity Index ........................... .325% .300% .275% .255% .245%
Alliance Common Stock ........................... .475% .425% .375% .355% .345%*
Alliance Global ................................. .675% .600% .550% .530% .520%
Alliance International .......................... .900% .825% .800% .780% .770%
Alliance Aggressive Stock ....................... .625% .575% .525% .500% .475%
Alliance Small Cap Growth ....................... .900% .850% .825% .800% .775%
Alliance Conservative Investors ................. .475% .425% .375% .350% .325%
Alliance Balanced ............................... .450% .400% .350% .325% .300%
Alliance Growth Investors ....................... .550% .500% .450% .425% .400%
</TABLE>
- ----------
* On assets in excess of $10 billion, the management fee for the Alliance
Common Stock Portfolio is reduced to 0.335% of average daily net assets.
3. Distribution Plan
Each Portfolio's Distribution Plan permits the Portfolio to pay a
distribution fee of up to 0.50% of the average daily net assets attributable to
its Class IB shares. The Trust, on behalf of each Portfolio, has entered into
distribution agreements ("the Class IB Distribution Agreements") pursuant to
the Distribution Plans with each of Equitable Distributors, Inc. ("EDI") and EQ
Financial Consultants, Inc. ("EQ Financial") (each a "Class IB Distributor").
Both EDI and EQ Financial are indirect, wholly-owned subsidiaries of the
Equitable. The Class IB Distribution Agreements provide that each Class IB
Distributor receives payments from each Portfolio (except the Alliance Small
Cap Growth Portfolio) at a rate equal to 0.25% of the average daily net assets
of such Portfolio attributable to Class IB shares for which such Class IB
Distributor provides services and/or assumes expenses under the Distribution
Plan. With respect to the Alliance Small Cap Growth Portfolio, this amount
shall not exceed the lesser of (a) 0.25% of the average daily net assets of the
Portfolio attributable to Class IB shares for which each Class IB Distributor
provides services and/or assumes expenses under the Distribution Plan and (b)
an amount that, when added to certain other expenses of the Class IB shares,
would result in a ratio of expenses to average daily net assets attributable to
Class IB shares for which such Class IB Distributor provides services and/or
assumes expenses under the Distribution Plan equaling 1.20%.
The Distribution Plans provide that EDI and EQ Financial will use the
payments received under the Class IB Distribution Agreements for services
rendered (and expenses borne) in connection with activities primarily intended
to result in the sale of the Trust's Class IB shares. Since the Class IB
Distributor's compensation is not directly tied to their expenses, the amount
of compensation received under the Class IB Distribution Agreements during any
year may be more or less than actual expenses. For this reason, the
Distribution Plans are characterized by the staff of the Securities and
Exchange Commission as being of the "compensation" variety.
73
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
4. Investment Transactions
Investment security transactions, excluding short-term debt securities,
for the year ended December 31, 1998 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------------------------------- ----------------------------------
STOCKS AND U.S. GOVERNMENT STOCKS AND U.S. GOVERNMENT
PORTFOLIO DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES
- ----------------------------------------------------- ----------------- ----------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Alliance Intermediate Government Securities ......... $ -- $882,551,892 $ -- $779,886,556
Alliance Quality Bond ............................... 91,071,256 487,202,030 73,242,559 395,286,597
Alliance High Yield ................................. 1,184,293,260 -- 915,572,290 --
Alliance Growth and Income .......................... 815,755,393 -- 555,944,044 --
Alliance Equity Index ............................... 497,118,176 -- 77,132,186 --
Alliance Common Stock ............................... 5,990,877,057 -- 4,756,141,756 --
Alliance Global ..................................... 1,299,924,040 -- 1,373,918,299 --
Alliance International .............................. 113,329,137 -- 120,272,396 --
Alliance Aggressive Stock ........................... 4,602,143,779 -- 4,708,779,467 --
Alliance Small Cap Growth ........................... 361,639,388 -- 200,463,865 --
Alliance Conservative Investors ..................... 134,956,237 192,184,044 123,103,953 168,194,209
Alliance Balanced ................................... 896,747,240 684,949,864 963,577,848 656,749,490
Alliance Growth Investors ........................... 1,218,713,796 469,941,220 1,236,606,838 390,934,301
</TABLE>
No activity is shown for the Alliance Money Market Portfolio since it
trades exclusively in short-term debt securities.
Transactions in options written for the year ended December 31, 1998 are
summarized as follows:
<TABLE>
<CAPTION>
ALLIANCE
COMMON STOCK
PORTFOLIO
--------------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
------------- ----------------
<S> <C> <C>
Options outstanding--January 1, 1998 ........................ 365,250 $ 103,560,700
Options written ............................................. 2,091,320 657,322,763
Options terminated in closing purchase transactions ......... (483,930) (141,155,763)
Options expired ............................................. (889,138) (253,614,377)
Options exercised ........................................... (590,542) (170,305,807)
--------- --------------
Options outstanding--December 31, 1998 ...................... 492,960 $ 195,807,516
========= ==============
</TABLE>
The Portfolios (except for the Alliance Money Market, Alliance
Intermediate Government Securities and Alliance Equity Index Portfolios) may
enter into forward currency contracts in order to hedge their exposure to
changes in foreign currency exchange rates on their foreign securities
holdings. A forward contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. The gain or loss
arising from the difference between the original contracts and the closing of
such contracts is included in realized gains or losses from foreign currency
transactions. At December 31, 1998, the Alliance Global, Alliance
International, Alliance Conservative Investors, Alliance Balanced and Alliance
Growth Investors Portfolios had outstanding forward currency contracts to
buy/sell foreign currencies as follows:
74
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE GLOBAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- -------------------------------------------------- ------------ ------------- ------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, settling 01/05/99 ................ 261 $ 437,745 $ 434,102 $ (3,643)
Italian Lira, settling 01/05/99 .................. 702,045 423,531 424,581 1,050
Japanese Yen, settling 02/26/99 .................. 4,000,000 34,457,806 35,709,822 1,252,016
Swedish Krona, settling 01/05/99 ................. 1,203 149,128 148,646 (482)
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 01/04/99-02/26/99 ......... 4,011,590 34,278,391 35,812,541 (1,534,150)
------------
$ (285,209)
============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE INTERNATIONAL PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------- ----------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Japanese Yen, settling 01/04/99 ......... 1,505,000 $11,144,021 $13,336,287 $ 2,192,266
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 01/04/99 ......... 1,507,297 11,239,914 13,356,644 (2,116,730)
------------
$ 75,536
============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- -------------------------------------------- ---------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Japanese Yen, settling 01/04/99 ............ 135,000 $ 999,630 $ 1,196,278 $ 196,648
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 01/04/99 ............ 135,329 1,009,259 1,199,193 (189,934)
----------
$ 6,714
==========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE BALANCED PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------- ----------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Japanese Yen, settling 01/04/99 ......... 1,230,000 $ 9,107,738 $10,899,424 $ 1,791,686
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 01/04/99 ......... 1,230,000 9,170,208 10,899,424 (1,729,216)
------------
$ 62,470
============
</TABLE>
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
ALLIANCE GROWTH INVESTORS PORTFOLIO: (000'S) DATE VALUE (DEPRECIATION)
- ----------------------------------------- ----------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Japanese Yen, settling 01/04/99 ......... 2,500,000 $18,511,662 $22,153,300 $ 3,641,638
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, settling 01/04/99 ......... 2,504,474 18,676,316 22,192,951 (3,516,635)
------------
$ 125,003
============
</TABLE>
75
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
As of December 31, 1998, the gross unrealized appreciation (depreciation)
of investments based on the aggregate cost of investments for Federal income
tax purposes was as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
COST OF --------------------------------- APPRECIATION
PORTFOLIO INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------- ----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Alliance Money Market ............................... $1,065,208,017 $ 708,247 $ (16,311) $ 691,936
Alliance Intermediate Government Securities ......... 224,677,249 1,973,900 (780,832) 1,193,068
Alliance Quality Bond ............................... 322,729,246 3,760,121 (1,440,440) 2,319,681
Alliance High Yield ................................. 664,097,119 6,466,990 (71,570,622) (65,103,632)
Alliance Growth and Income .......................... 853,361,062 198,202,793 (56,147,536) 142,055,257
Alliance Equity Index ............................... 1,166,648,275 539,339,959 (26,656,029) 512,683,930
Alliance Common Stock ............................... 8,870,134,823 4,918,784,136 (492,118,717) 4,426,665,419
Alliance Global ..................................... 1,148,236,463 326,834,020 (55,744,464) 271,089,556
Alliance International .............................. 199,595,845 40,766,037 (37,127,918) 3,638,119
Alliance Aggressive Stock ........................... 4,327,017,046 788,191,037 (479,687,021) 308,504,016
Alliance Small Cap Growth ........................... 314,017,957 39,536,445 (30,810,567) 8,725,878
Alliance Conservative Investors ..................... 355,277,161 39,068,741 (5,520,012) 33,548,729
Alliance Balanced ................................... 1,661,912,307 332,818,610 (53,484,535) 279,334,075
Alliance Growth Investors ........................... 1,740,591,203 395,786,484 (84,087,123) 311,699,361
</TABLE>
During the year ended December 31, 1998, the Alliance Intermediate
Government Securities Portfolio utilized available capital loss carryforwards
of $3,248,623.
The Alliance Intermediate Government Securities Portfolio and Alliance
Small Cap Growth Portfolio had net capital loss carryforwards of $5,583,325 (of
which $5,101,186 expires in the year 2002 and $482,139 expires in the year
2004) and $16,465,876 (all of which expires in the year 2006), respectively. To
the extent the above losses are used to offset future capital gains, it is
probable that the gains so offset will not be distributed to shareholders.
5. Capital Share Transactions
At December 31, 1998, there was an unlimited number of shares of
beneficial interest (Shares), without par value, available for issuance by the
Board of Trustees. Shares are divided into two classes, designated Class IA and
Class IB for each Portfolio.
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
---------------------------------- -------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
----------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ............. 136,020,103 88,164,162 7,332,095 4,317,481
Shares issued in
reinvestment of
dividends and
distributions .......... 2,682,886 2,138,588 724,448 605,567
----------- ---------- --------- ---------
Total shares issued ..... 138,702,989 90,302,750 8,056,543 4,923,048
Shares redeemed ......... (112,151,509) (91,686,416) (4,388,356) (2,249,794)
------------ ----------- ---------- ----------
Net increase (decrease) 26,551,480 (1,383,666) 3,668,187 2,673,254
============ =========== ========== ==========
<PAGE>
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
------------------------------- --------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
--------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ............. 12,172,248 5,108,456 18,951,617 15,273,062
Shares issued in
reinvestment of
dividends and
distributions .......... 2,093,682 1,161,537 5,403,877 3,903,981
---------- --------- ---------- ----------
Total shares issued ..... 14,265,930 6,269,993 24,355,494 19,177,043
Shares redeemed ......... (2,355,892) (1,749,691) (11,963,174) (4,915,625)
---------- ---------- ----------- ----------
Net increase (decrease) 11,910,038 4,520,302 12,392,320 14,261,418
========== ========== =========== ==========
</TABLE>
76
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GROWTH AND INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
------------------------------- -------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ................ 15,163,368 17,042,406 26,611,092 25,418,356
Shares issued in
reinvestment of
dividends and
distributions ............. 4,401,644 2,393,845 694,933 723,055
---------- ---------- ---------- ----------
Total shares issued ........ 19,565,012 19,436,251 27,306,025 26,141,411
Shares redeemed ............ (3,992,469) (1,171,007) (7,487,195) (3,834,705)
---------- ---------- ---------- ----------
Net increase ............... 15,572,543 18,265,244 19,818,830 22,306,706
========== ========== ========== ==========
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
---------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ................ 43,379,931 50,744,225 8,066,603 13,465,598
Shares issued in
reinvestment of
dividends and
distributions ............. 63,907,193 35,866,900 5,362,782 5,883,409
---------- ---------- --------- ----------
Total shares issued ........ 107,287,124 86,611,125 13,429,385 19,349,007
Shares redeemed ............ (43,764,983) (18,396,632) (13,140,812) (8,663,149)
----------- ----------- ----------- ----------
Net increase ............... 63,522,141 68,214,493 288,573 10,685,858
=========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
INTERNATIONAL AGGRESSIVE STOCK
PORTFOLIO PORTFOLIO
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ................ 40,984,802 17,702,398 33,480,797 34,847,127
Shares issued in
reinvestment of
dividends and
distributions ............. 362,445 1,469,420 7,661,455 11,233,155
---------- ---------- ---------- ----------
Total shares issued ........ 41,347,247 19,171,818 41,142,252 46,080,282
Shares redeemed ............ (41,520,686) (13,816,916) (40,575,903) (27,155,091)
----------- ----------- ----------- -----------
Net increase (decrease) (173,439) 5,354,902 566,349 18,925,191
=========== =========== =========== ===========
<PAGE>
<CAPTION>
ALLIANCE ALLIANCE
SMALL CAP GROWTH CONSERVATIVE INVESTORS
PORTFOLIO PORTFOLIO
------------------------------- -------------------------------
MAY 1, 1997*
YEAR ENDED TO YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold ................ 52,458,409 12,473,113 3,583,057 2,875,061
Shares issued in
reinvestment of
dividends and
distributions ............. 1,203 185,690 2,581,375 1,809,193
---------- ---------- --------- ---------
Total shares issued ........ 52,459,612 12,658,803 6,164,432 4,684,254
Shares redeemed ............ (43,349,403) (4,992,168) (3,201,439) (3,816,982)
----------- ---------- ---------- ----------
Net increase (decrease) 9,110,209 7,666,635 2,962,993 867,272
=========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
BALANCED GROWTH INVESTORS
PORTFOLIO PORTFOLIO
---------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class IA
- --------
Shares sold .......................... 4,836,054 3,662,533 6,034,474 9,706,135
Shares issued in reinvestment of
dividends and distributions ......... 11,476,087 8,034,691 9,929,342 6,731,864
---------- --------- --------- ---------
Total shares issued .................. 16,312,141 11,697,224 15,963,816 16,437,999
Shares redeemed ...................... (9,732,301) (12,097,554) (5,077,946) (4,231,449)
---------- ----------- ---------- ----------
Net increase (decrease) .............. 6,579,840 (400,330) 10,885,870 12,206,550
========== =========== ========== ==========
</TABLE>
- ----------
* Commencement of operations.
77
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
ALLIANCE
ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
PORTFOLIO PORTFOLIO
-------------------------------- -----------------------------
MAY 1, 1997*
YEAR ENDED YEAR ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
---------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold ................. 40,257,599 15,458,380 2,732,736 536,124
Shares issued in
reinvestment of
dividends and
distributions .............. 1,123,590 276,519 87,259 9,576
---------- ---------- --------- -------
Total shares issued ......... 41,381,189 15,734,899 2,819,995 545,700
Shares redeemed ............. (15,656,425) (3,884,676) (156,546) (10,301)
----------- ---------- --------- -------
Net increase ................ 25,724,764 11,850,223 2,663,449 535,399
=========== ========== ========= =======
<CAPTION>
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
PORTFOLIO PORTFOLIO
-------------- ---------------------------
JULY 8, 1998*
TO YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1998 1997
-------------- -------------- ------------
<S> <C> <C> <C>
Class IB
- --------
Shares sold ................. 1,010 15,829,829 5,872,392
Shares issued in
reinvestment of
dividends and
distributions .............. 47 2,231,229 496,765
----- ---------- ---------
Total shares issued ......... 1,057 18,061,058 6,369,157
Shares redeemed ............. -- (612,661) (51,149)
----- ---------- ---------
Net increase ................ 1,057 17,448,397 6,318,008
===== ========== =========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE
GROWTH AND INCOME EQUITY INDEX
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
MAY 1, 1997* MAY 1, 1997*
YEAR ENDED TO YEAR ENDED TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold ............... 4,613,042 2,001,059 13,073 7,451
Shares issued in
reinvestment of
dividends and
distributions ............ 579,115 127,333 108 55
--------- --------- ------ -----
Total shares issued . ..... 5,192,157 2,128,392 13,181 7,506
Shares redeemed ........... (208,611) (266) (1,032) (1,926)
--------- --------- ------ ------
Net increase .............. 4,983,546 2,128,126 12,149 5,580
========= ========= ====== ======
<PAGE>
<CAPTION>
ALLIANCE ALLIANCE
COMMON STOCK GLOBAL
PORTFOLIO PORTFOLIO
----------------------------- --------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold ............... 19,886,395 9,736,070 1,194,769 1,232,644
Shares issued in
reinvestment of
dividends and
distributions ............ 4,121,858 826,867 176,642 99,584
---------- --------- --------- ---------
Total shares issued . ..... 24,008,253 10,562,937 1,371,411 1,332,228
Shares redeemed ........... (278,288) (29,575) (145,815) (103,224)
---------- ---------- --------- ---------
Net increase .............. 23,729,965 10,533,362 1,225,596 1,229,004
========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
ALLIANCE
INTERNATIONAL
PORTFOLIO
----------------------------------
YEAR ENDED MAY 1, 1997*
DECEMBER 31, TO
1998 DECEMBER 31, 1997
-------------- -------------------
<S> <C> <C>
Class IB
- --------
Shares sold . ...................... 592,943 317,031
Shares issued in reinvestment of
dividends and distributions ....... 9,904 22,868
------- -------
Total shares issued . . . .......... 602,847 339,899
Shares redeemed .................... (244,562) (19,496)
-------- -------
Net increase ....................... 358,285 320,403
======== =======
<CAPTION>
ALLIANCE ALLIANCE
AGGRESSIVE STOCK SMALL CAP GROWTH
PORTFOLIO PORTFOLIO
--------------------------- ---------------------------------
YEAR ENDED YEAR ENDED MAY 1, 1997*
DECEMBER 31, DECEMBER 31, TO
1998 1997 1998 DECEMBER 31, 1997
------------- ------------- -------------- ------------------
<S> <C> <C> <C> <C>
Class IB
- --------
Shares sold . ...................... 2,372,000 1,856,882 6,064,836 3,666,066
Shares issued in reinvestment of
dividends and distributions ....... 244,653 175,796 -- 91,565
--------- --------- --------- ---------
Total shares issued . . . .......... 2,616,653 2,032,678 6,064,836 3,757,631
Shares redeemed .................... (129,735) (15,597) (295,805) (5,055)
--------- --------- --------- ---------
Net increase ....................... 2,486,918 2,017,081 5,769,031 3,752,576
========= ========= ========= =========
</TABLE>
- ----------
* Commencement of operations.
78
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
ALLIANCE ALLIANCE ALLIANCE
CONSERVATIVE INVESTORS BALANCED GROWTH INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------- ------------------ ----------------------------
YEAR ENDED MAY 1, 1997* JULY 8, 1998* YEAR ENDED
DECEMBER 31, TO TO DECEMBER 31,
1998 DECEMBER 31, 1997 DECEMBER 31, 1998 1998 1997
-------------- ------------------ ------------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Class IB
- --------
Shares sold .......................... 2,038,248 467,751 513 2,539,628 1,855,983
Shares issued in reinvestment of
dividends and distributions ......... 185,980 20,199 54 424,011 130,747
--------- ------- --- --------- ---------
Total shares issued . ................ 2,224,228 487,950 567 2,963,639 1,986,730
Shares redeemed ...................... (49,850) (8,774) -- (253,305) (85,261)
--------- ------- --- --------- ---------
Net increase ......................... 2,174,378 479,176 567 2,710,334 1,901,469
========= ======= === ========= =========
</TABLE>
- ----------
* Commencement of operations.
6. Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the
Trust, participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions, in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the Statements of Operations. The Trust did not
utilize the Facility during the year ended December 31, 1998.
7. Transactions with Affiliated Companies
An affiliated company is a company in which a Portfolio has ownership of
at least 5% of the voting securities. Investments in companies which were
affiliates during the year ended December 31, 1998 are summarized as follows:
<TABLE>
<CAPTION>
MARKET VALUE MARKET VALUE REALIZED
DECEMBER 31, PURCHASES SALES DECEMBER 31, DIVIDEND GAIN
1997 AT COST AT COST 1998 INCOME (LOSS)
-------------- --------------- -------------- ---------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
ALLIANCE COMMON STOCK PORTFOLIO:
Abercrombie & Fitch Co. (Class A) ........ $ -- $ 21,063,829 $17,113,683 $ -- $ -- $ 9,923,529
Ceridian Corp. ........................... 174,774,688 -- -- 266,334,688 -- --
Chris Craft Industries, Inc. (Class B) ... 64,143,286 -- -- 60,857,849 -- --
Ingram Micro, Inc. (Class A) ............. -- 105,907,470 -- 83,700,000 -- --
SCI Systems, Inc. ........................ -- 153,174,554 21,327,500 206,514,000 -- (2,309,999)
Teleport Communications Group, Inc.
(Class A) ............................... 220,103,625 -- 65,220,313 -- -- 27,905,809
------------ ------------- ---- ------------
$459,021,599 $ 617,406,537 $ -- $ 35,519,339
============ ============= ==== ============
</TABLE>
79
<PAGE>
THE HUDSON RIVER TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
December 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE
DECEMBER 31, PURCHASES SALES
1997 AT COST AT COST
----------------- -------------- ---------------
<S> <C> <C> <C>
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
Abercrombie & Fitch Co. (Class A) .......... $ -- $ 76,324,173 $ 53,329,966
Capstar Hotel Co. .......................... -- 81,149,255 --
Centocor, Inc. ............................. 167,463,625 111,451,347 293,691,624
Circuit City Stores, Inc.- CarMax
Group ..................................... 56,346,300 1,107,635 947,745
Comverse Technology, Inc. (a) .............. 72,520,500 -- 5,393,586
Continental Airlines, Inc. (Class B) ....... 213,588,375 25,055,485 17,344,702
Crompton & Knowles Corp. ................... 137,800,000 -- 34,511,251
Dollar Thrifty Automotive Group, Inc. ...... -- 34,775,410 34,775,410
Florida Panthers Holdings, Inc. ............ 29,071,425 16,452,003 --
MedImmune, Inc. (a) ........................ 57,443,925 -- 767,822
Millicom International Cellular SA ......... 89,487,300 6,670,015 1,151,761
Mohawk Industries, Inc. .................... 69,103,125 19,664,861 797,972
Polo Ralph Lauren Corp. .................... -- 66,464,900 66,464,900
Premier Parks, Inc. ........................ -- 132,191,005 7,500,600
Security Capital Group, Inc. (Class B) ..... 38,509,250 17,676,525 620,958
Suburban Lodges of America ................. 12,034,500 -- 17,254,100
Teekay Shipping Corp. ...................... -- 64,163,180 --
Telephone & Data Systems, Inc. ............. 133,322,406 -- 39,868,179
Tiffany & Co. .............................. 56,376,506 48,968,141 7,673,342
Tommy Hilfiger Corp. (a) ................... 68,124,937 12,081,367 20,934,612
Venator Group, Inc. ........................ -- 144,426,311 --
--------------
$1,201,192,174
==============
<CAPTION>
MARKET VALUE REALIZED
DECEMBER 31, DIVIDEND GAIN
1998 INCOME (LOSS)
----------------- -------------- ----------------
<S> <C> <C> <C>
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
Abercrombie & Fitch Co. (Class A) .......... $ -- $ -- $ 8,556,912
Capstar Hotel Co. .......................... -- -- --
Centocor, Inc. ............................. -- -- 33,584,924
Circuit City Stores, Inc.- CarMax
Group ..................................... 34,580,869 -- (408,137)
Comverse Technology, Inc. (a) .............. 66,051,300 -- (1,196,176)
Continental Airlines, Inc. (Class B) ....... 148,468,650 -- 21,724,960
Crompton & Knowles Corp. ................... -- 260,000 2,103,108
Dollar Thrifty Automotive Group, Inc. ...... -- -- (17,798,105)
Florida Panthers Holdings, Inc. ............ 23,292,425 -- --
MedImmune, Inc. (a) ........................ 47,381,969 -- 1,245,585
Millicom International Cellular SA ......... 85,782,037 -- 3,053,727
Mohawk Industries, Inc. .................... 158,441,025 -- 1,312,171
Polo Ralph Lauren Corp. .................... -- -- (14,428,668)
Premier Parks, Inc. ........................ 162,327,550 -- (204,587)
Security Capital Group, Inc. (Class B) ..... -- -- (127,232)
Suburban Lodges of America ................. -- -- (3,412,315)
Teekay Shipping Corp. ...................... 49,463,706 946,000 --
Telephone & Data Systems, Inc. ............. -- 546,854 6,243,799
Tiffany & Co. .............................. 132,327,937 794,843 68,781
Tommy Hilfiger Corp. (a) ................... 95,838,000 -- 4,531,018
Venator Group, Inc. ........................ 61,230,925 -- --
-------------- ----------- --------------
$1,065,186,393 $ 2,547,697 $ 44,849,765
============== =========== ==============
</TABLE>
- ----------
(a) Holdings represented less than 5% of outstanding shares at December 31,
1998, although ownership was above 5% for a period of time during the year.
For the year ended December 31, 1998, the Aggressive Stock Portfolio incurred
brokerage commissions of $12,076,600. This amount includes $25,510 which was
paid to Donaldson, Lufkin & Jenrette Securities Corp. ("DLJ"), an affiliate of
the Adviser, of which $13,940 was paid to DLJ's Pershing Division.
80
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS
December 31, 1998
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD(a)
ALLIANCE MONEY MARKET PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ..... $ 10.18 $ 10.17 $ 10.16 $ 10.14 $ 10.12
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.53 0.54 0.54 0.57 0.41
Net realized and unrealized gain (loss) on
investments ................................ -- -- (0.01) -- --
-------- -------- -------- -------- --------
Total from investment operations ............ 0.53 0.54 0.53 0.57 0.41
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.49) (0.53) (0.52) (0.55) (0.39)
Dividends in excess of net investment
income ..................................... -- -- -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions ........... (0.49) (0.53) (0.52) (0.55) (0.39)
-------- -------- -------- -------- --------
Net asset value, end of period ............... $ 10.22 $ 10.18 $ 10.17 $ 10.16 $ 10.14
======== ======== ======== ======== ========
Total return (c) ............................. 5.34% 5.42% 5.33% 5.74% 4.02%
======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $723,311 $449,960 $463,422 $386,691 $325,391
Ratio of expenses to average net assets ...... 0.37% 0.39% 0.43% 0.44% 0.42%
Ratio of net investment income to average
net assets .................................. 5.13% 5.28% 5.17% 5.53% 4.01%
<CAPTION>
CLASS IB
------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
------------------------- DECEMBER 31,
1998 1997 1996
------------ ------------ ----------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ..... $ 10.17 $ 10.16 $ 10.16
------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.49 0.52 0.11
Net realized and unrealized gain (loss) on
investments ................................ 0.02 -- 0.01
------- -------- --------
Total from investment operations ............ 0.51 0.52 0.12
------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.47) (0.51) (0.02)
Dividends in excess of net investment
income ..................................... -- -- (0.10)
-------- -------- ---------
Total dividends and distributions ........... (0.47) (0.51) (0.12)
-------- -------- ---------
Net asset value, end of period ............... $ 10.21 $ 10.17 $ 10.16
======== ======== =========
Total return (c) ............................. 5.08% 5.16% 1.29%
======== ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............ $386,718 $123,675 $ 3,184
Ratio of expenses to average net assets ...... 0.62% 0.63% 0.67%(d)
Ratio of net investment income to average
net assets .................................. 4.82% 5.02% 4.94%(d)
</TABLE>
<PAGE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(e):
<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 9.44 $ 9.29 $ 9.47 $ 8.87 $ 10.08
------- ------- ------ ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.50 0.53 0.54 0.58 0.65
Net realized and unrealized gain (loss) on
investments ................................. 0.21 0.13 (0.19) 0.57 (1.08)
------- ------- ------- ------ -------
Total from investment operations ............. 0.71 0.66 0.35 1.15 (0.43)
------- ------- ------- ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.48) (0.51) (0.53) (0.55) (0.78)
-------- -------- ------- ------- -------
Net asset value, end of period ................ $ 9.67 $ 9.44 $ 9.29 $ 9.47 $ 8.87
======== ======== ======= ======= =======
Total return (c) .............................. 7.74% 7.29% 3.78% 13.33% (4.37)%
======== ======== ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $153,383 $115,114 $88,384 $71,780 $48,518
Ratio of expenses to average net assets ....... 0.55% 0.55% 0.56% 0.57% 0.56%
Ratio of net investment income to average
net assets ................................... 5.21% 5.61% 5.73% 6.15% 6.75%
Portfolio turnover rate ....................... 539% 285% 318% 255% 133%
<CAPTION>
CLASS IB
-------------------------------
YEAR MAY 1, 1997
ENDED TO
DECEMBER 31, DECEMBER 31,
1998 1997
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of period (b) ...... $ 9.43 $ 9.27
------ ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.47 0.32
Net realized and unrealized gain (loss) on
investments ................................. 0.22 0.22
------ ---------
Total from investment operations ............. 0.69 0.54
------ ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.46) (0.38)
------- ---------
Net asset value, end of period ................ $ 9.66 $ 9.43
======= =========
Total return (c) .............................. 7.48% 5.83%
======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $30,898 $ 5,052
Ratio of expenses to average net assets ....... 0.80% 0.81%(d)
Ratio of net investment income to average
net assets ................................... 4.87% 5.15%(d)
Portfolio turnover rate ....................... 539% 285%
</TABLE>
81
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE QUALITY BOND PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 9.74 $ 9.49 $ 9.61 $ 8.72 $ 9.82
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.55 0.60 0.57 0.57 0.66
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ 0.28 0.24 (0.07) 0.88 (1.16)
------- ------- -------- ------- -------
Total from investment operations ............. 0.83 0.84 0.50 1.45 (0.50)
------- ------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.53) (0.59) (0.60) (0.56) (0.55)
Dividends in excess of net investment
income ...................................... -- -- (0.02) -- --
Distributions from realized gains ............ (0.20) -- -- -- --
Tax return of capital distributions .......... -- -- -- -- (0.05)
-------- -------- -------- -------- -------
Total dividends and distributions ............ (0.73) (0.59) (0.62) (0.56) (0.60)
-------- -------- -------- -------- -------
Net asset value, end of period ................ $ 9.84 $ 9.74 $ 9.49 $ 9.61 $ 8.72
======== ======== ======== ======== =======
Total return (c) .............................. 8.69% 9.14% 5.36% 17.02% (5.10)%
======== ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $322,418 $203,233 $155,023 $157,443 $127,575
Ratio of expenses to average net assets ....... 0.57% 0.57% 0.59% 0.59% 0.59%
Ratio of net investment income to average
net assets ................................... 5.48% 6.19% 6.06% 6.13% 7.17%
Portfolio turnover rate ....................... 194% 374% 431% 411% 222%
<CAPTION>
CLASS IB
----------------
JULY 8, 1998
TO
DECEMBER 31,
1998
----------------
<S> <C>
Net asset value, beginning of period (b) ...... $ 9.90
---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.25
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ 0.14
---------
Total from investment operations ............. 0.39
---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.25)
Dividends in excess of net investment
income ...................................... --
Distributions from realized gains ............ (0.20)
Tax return of capital distributions .......... --
---------
Total dividends and distributions ............ (0.45)
---------
Net asset value, end of period ................ $ 9.84
=========
Total return (c) .............................. 4.05%
=========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 10
Ratio of expenses to average net assets ....... 0.81%(d)
Ratio of net investment income to average
net assets ................................... 5.06%(d)
Portfolio turnover rate ....................... 194%
</TABLE>
<PAGE>
ALLIANCE HIGH YIELD PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 10.41 $ 10.02 $ 9.64 $ 8.91 $ 10.08
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 1.07 1.04 1.02 0.98 0.89
Net realized and unrealized gain (loss) on
investments .................................. ( 1.56) 0.75 1.07 0.73 ( 1.17)
------- ------- ------- ------- -------
Total from investment operations .............. ( 0.49) 1.79 2.09 1.71 ( 0.28)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 1.03) ( 0.97) ( 0.98) (0.94) ( 0.88)
Dividends in excess of net investment
income ....................................... -- -- ( 0.03) (0.04) ( 0.01)
Distributions from realized gains ............. ( 0.18) ( 0.43) ( 0.70) -- --
Distributions in excess of realized gains ..... -- -- -- -- --
------- -------- -------- -------- -------
Total dividends and distributions ............. ( 1.21) ( 1.40) ( 1.71) (0.98) ( 0.89)
------- -------- -------- -------- -------
Net asset value, end of period ................. $ 8.71 $ 10.41 $ 10.02 $ 9.64 $ 8.91
======= ======== ======== ======== =======
Total return (c) ............................... ( 5.15)% 18.48% 22.89% 19.92% ( 2.79)%
======= ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $405,308 $355,473 $199,360 $118,129 $73,895
Ratio of expenses to average net assets ........ 0.63% 0.62% 0.59% 0.60% 0.61%
Ratio of net investment income to average
net assets .................................... 10.67% 9.82% 9.93% 10.34% 9.23%
Portfolio turnover rate ........................ 181% 390% 485% 350% 248%
<CAPTION>
CLASS IB
------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
------------------------- DECEMBER 31,
1998 1997 1996
------------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 10.39 $ 10.01 $ 10.25
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 1.04 1.05 0.19
Net realized and unrealized gain (loss) on
investments .................................. (1.56) 0.71 0.15
------- ------- ---------
Total from investment operations .............. (0.52) 1.76 0.34
------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (1.00) (0.95) (0.03)
Dividends in excess of net investment
income ....................................... -- -- (0.25)
Distributions from realized gains ............. (0.18) (0.43) (0.01)
Distributions in excess of realized gains ..... -- -- (0.29)
------- ------- ---------
Total dividends and distributions ............. (1.18) (1.38) (0.58)
------- ------- ---------
Net asset value, end of period ................. $ 8.69 $ 10.39 $ 10.01
======= ======= =========
Total return (c) ............................... (5.38)% 18.19% 3.32%
======= ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $207,042 $66,338 $ 685
Ratio of expenses to average net assets ........ 0.88% 0.88% 0.82%(d)
Ratio of net investment income to average
net assets .................................... 10.60% 9.76% 8.71%(d)
Portfolio turnover rate ........................ 181% 390% 485%
</TABLE>
82
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE GROWTH AND INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 15.38 $ 13.01 $ 11.70 $ 9.70 $ 9.95
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.06 0.15 0.24 0.33 0.31
Net realized and unrealized gain (loss) on
investments ................................. 3.08 3.30 2.05 1.97 (0.36)
------- ------- ------- ------- -------
Total from investment operations ............. 3.14 3.45 2.29 2.30 (0.05)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.05) (0.15) (0.23) (0.30) (0.20)
Distributions from realized gains ............ (1.48) (0.93) (0.75) -- --
-------- -------- -------- ------- -------
Total dividends and distributions ............ (1.53) (1.08) (0.98) (0.30) (0.20)
-------- -------- -------- ------- -------
Net asset value, end of period ................ $ 16.99 $ 15.38 $ 13.01 $ 11.70 $ 9.70
======== ======== ======== ======= =======
Total return (c) .............................. 20.86% 26.90% 20.09% 24.07% (0.58)%
======== ======== ======== ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $877,744 $555,059 $232,080 $98,053 $31,522
Ratio of expenses to average net assets ....... 0.58% 0.58% 0.58% 0.60% 0.78%
Ratio of net investment income to average
net assets ................................... 0.38% 0.99% 1.94% 3.11% 3.13%
Portfolio turnover rate ....................... 74% 79% 88% 65% 52%
<CAPTION>
CLASS IB
-------------------------------
YEAR MAY 1, 1997
ENDED TO
DECEMBER 31, DECEMBER 31,
1998 1997
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of period (b) ...... $ 15.36 $ 13.42
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.03 0.05
Net realized and unrealized gain (loss) on
investments ................................. 3.07 2.91
------- ---------
Total from investment operations ............. 3.10 2.96
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.03) (0.09)
Distributions from realized gains ............ (1.48) (0.93)
-------- ---------
Total dividends and distributions ............ (1.51) (1.02)
-------- ---------
Net asset value, end of period ................ $ 16.95 $ 15.36
======== =========
Total return (c) .............................. 20.56% 22.41%
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $120,558 $ 32,697
Ratio of expenses to average net assets ....... 0.83% 0.83%(d)
Ratio of net investment income to average
net assets ................................... 0.17% 0.43%(d)
Portfolio turnover rate ....................... 74% 79%
</TABLE>
<PAGE>
ALLIANCE EQUITY INDEX PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1998 1997 1996 1995
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 19.74 $ 15.16 $ 13.13 $ 9.87
--------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.27 0.26 0.27 0.26
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 5.25 4.64 2.65 3.32
--------- ------- ------- -------
Total from investment operations .............. 5.52 4.90 2.92 3.58
--------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.25) (0.25) (0.25) (0.22)
Distributions from realized gains ............. (0.01) (0.07) (0.64) (0.09)
Distributions in excess of realized gains ..... -- -- -- (0.01)
---------- -------- -------- --------
Total dividends and distributions ............. (0.26) (0.32) (0.89) (0.32)
---------- -------- -------- --------
Net asset value, end of period ................. $ 25.00 $ 19.74 $ 15.16 $ 13.13
========== ======== ======== ========
Total return (c) ............................... 28.07% 32.58% 22.39% 36.48%
========== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $1,689,913 $943,631 $386,249 $165,785
Ratio of expenses to average net assets ........ 0.34% 0.37% 0.39% 0.48%
Ratio of net investment income to average
net assets .................................... 1.23% 1.46% 1.91% 2.16%
Portfolio turnover rate ........................ 6% 3% 15% 9%
<CAPTION>
CLASS IA CLASS IB
------------------- ---------------------------------
YEAR
MARCH 1, 1994 ENDED MAY 1, 1997
TO DECEMBER 31, TO
DECEMBER 31, 1994 1998 DECEMBER 31, 1997
------------------- -------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 10.00 $ 19.73 $ 16.35
--------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.20 0.22 0.14
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. (0.09) 5.24 3.48
--------- ------- ---------
Total from investment operations .............. 0.11 5.46 3.62
--------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.20) (0.20) (0.17)
Distributions from realized gains ............. (0.03) (0.01) (0.07)
Distributions in excess of realized gains ..... (0.01) -- --
--------- -------- ---------
Total dividends and distributions ............. (0.24) (0.21) (0.24)
--------- -------- ---------
Net asset value, end of period ................. $ 9.87 $ 24.98 $ 19.73
========= ======== =========
Total return (c) ............................... 1.08% 27.74% 22.28%
========= ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $ 36,748 $ 443 $ 110
Ratio of expenses to average net assets ........ 0.49%(d) 0.59% 0.62%(d)
Ratio of net investment income to average
net assets .................................... 2.42%(d) 0.98% 1.10%(d)
Portfolio turnover rate ........................ 7% 6% 3%
</TABLE>
83
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE COMMON STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 21.61 $ 18.23 $ 16.48 $ 13.36 $ 14.65
---------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.18 0.14 0.15 0.20 0.20
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 5.99 5.12 3.73 4.12 (0.51)
---------- --------- --------- --------- ---------
Total from investment operations .............. 6.17 5.26 3.88 4.32 (0.31)
---------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.15) (0.11) (0.15) (0.20) (0.19)
Dividends in excess of net investment
income ....................................... -- -- -- (0.02) (0.01)
Distributions from realized gains ............. (3.28) (1.77) (1.76) (0.95) (0.77)
Distributions in excess of realized gains ..... -- -- (0.22) (0.03) --
Tax return of capital distributions ........... -- -- -- -- (0.01)
----------- ---------- ---------- ---------- ---------
Total dividends and distributions ............. (3.43) (1.88) (2.13) (1.20) (0.98)
----------- ---------- ---------- ---------- ---------
Net asset value, end of period ................. $ 24.35 $ 21.61 $ 18.23 $ 16.48 $ 13.36
=========== ========== ========== ========== =========
Total return (c) ............................... 29.39% 29.40% 24.28% 32.45% (2.14)%
=========== ========== ========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $12,061,977 $9,331,994 $6,625,390 $4,879,677 $3,466,245
Ratio of expenses to average net assets ........ 0.39% 0.39% 0.38% 0.38% 0.38%
Ratio of net investment income to average
net assets .................................... 0.75% 0.69% 0.85% 1.27% 1.40%
Portfolio turnover rate ........................ 46% 52% 55% 61% 52%
<CAPTION>
CLASS IB
------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
------------------------- DECEMBER 31,
1998 1997 1996
------------ ------------ ----------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 21.58 $ 18.22 $ 17.90
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.10 0.10 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 6.00 5.11 1.52
------- ------- ---------
Total from investment operations .............. 6.10 5.21 1.54
------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.10) (0.08) (0.00)
Dividends in excess of net investment
income ....................................... -- -- (0.03)
Distributions from realized gains ............. (3.28) (1.77) (0.16)
Distributions in excess of realized gains ..... -- -- (1.03)
Tax return of capital distributions ........... -- -- --
-------- -------- ---------
Total dividends and distributions ............. (3.38) (1.85) (1.22)
-------- -------- ---------
Net asset value, end of period ................. $ 24.30 $ 21.58 $ 18.22
======== ======== =========
Total return (c) ............................... 29.06% 29.07% 8.49%
======== ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $834,144 $228,780 $ 1,244
Ratio of expenses to average net assets ........ 0.64% 0.64% 0.63%(d)
Ratio of net investment income to average
net assets .................................... 0.44% 0.46% 0.61%(d)
Portfolio turnover rate ........................ 46% 52% 55%
</TABLE>
<PAGE>
ALLIANCE GLOBAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 17.29 $ 16.92 $ 15.74 $ 13.87 $ 13.62
--------- --------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.14 0.17 0.21 0.26 0.20
Net realized and unrealized gain on
investments and foreign currency
transactions ................................. 3.56 1.75 2.05 2.32 0.52
--------- --------- ------- ------- -------
Total from investment operations .............. 3.70 1.92 2.26 2.58 0.72
--------- --------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.22) (0.36) (0.21) (0.25) (0.17)
Dividends in excess of net investment
income ....................................... -- -- (0.08) -- --
Distributions from realized gains ............. (1.31) (1.19) (0.79) (0.42) (0.28)
Distributions in excess of realized gains ..... -- -- -- (0.03) (0.00)
Tax return of capital distributions ........... -- -- ( 0.00) (0.01) (0.02)
---------- ---------- -------- -------- --------
Total dividends and distributions ............. (1.53) (1.55) (1.08) (0.71) (0.47)
---------- ---------- -------- -------- --------
Net asset value, end of period ................. $ 19.46 $ 17.29 $ 16.92 $ 15.74 $ 13.87
========== ========== ======== ======== ========
Total return (c) ............................... 21.80% 11.66% 14.60% 18.81% 5.23%
========== ========== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $1,360,220 $1,203,867 $997,041 $686,140 $421,698
Ratio of expenses to average net assets ........ 0.71% 0.69% 0.60% 0.61% 0.69%
Ratio of net investment income to average
net assets .................................... 0.72% 0.97% 1.28% 1.76% 1.41%
Portfolio turnover rate ........................ 105% 57% 59% 67% 71%
<CAPTION>
CLASS IB
----------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
----------------------- DECEMBER 31,
1998 1997 1996
----------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 17.27 $ 16.91 $ 16.57
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.08 0.12 0.02
Net realized and unrealized gain on
investments and foreign currency
transactions ................................. 3.56 1.76 0.81
------- ------- ---------
Total from investment operations .............. 3.64 1.88 0.83
------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.19) (0.33) --
Dividends in excess of net investment
income ....................................... -- -- (0.11)
Distributions from realized gains ............. (1.31) (1.19) (0.10)
Distributions in excess of realized gains ..... -- -- (0.28)
Tax return of capital distributions ........... -- -- (0.00)
------- ------- ---------
Total dividends and distributions ............. (1.50) (1.52) (0.49)
------- ------- ---------
Net asset value, end of period ................. $19.41 $17.27 $ 16.91
======= ======= =========
Total return (c) ............................... 21.50% 11.38% 4.98%
======= ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $47,982 $21,520 $ 290
Ratio of expenses to average net assets ........ 0.96% 0.97% 0.86%(d)
Ratio of net investment income to average
net assets .................................... 0.41% 0.67% 0.48%(d)
Portfolio turnover rate ........................ 105% 57% 59%
</TABLE>
84
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------- APRIL 3,
1995 TO
DECEMBER 31,
1998 1997 1996 1995
------------ ------------- ------------ ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ...... $ 10.27 $ 11.50 $ 10.87 $ 10.00
------- ------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.09 0.10 0.13 0.14
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ 0.97 (0.45) 0.94 0.98
------- ------- ------- ---------
Total from investment operations ............. 1.06 (0.35) 1.07 1.12
------- ------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.20) (0.32) (0.10) (0.07)
Dividends in excess of net investment
income ...................................... -- -- (0.09) (0.13)
Distributions from realized gains ............ (0.00) (0.56) (0.25) (0.05)
-------- ------- -------- ---------
Total dividends and distributions ............ (0.20) (0.88) (0.44) (0.25)
-------- ------- -------- ---------
Net asset value, end of period ................ $ 11.13 $ 10.27 $ 11.50 $ 10.87
======== ======= ======== =========
Total return (c) .............................. 10.57% ( 2.98)% 9.82% 11.29%
======== ======= ======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $204,767 $190,611 $151,907 $ 28,684
Ratio of expenses to average net assets ....... 1.06% 1.08% 1.06% 1.03%(d)
Ratio of net investment income to average
net assets ................................... 0.81% 0.83% 1.10% 1.71%(d)
Portfolio turnover rate ....................... 59% 59% 48% 56%
<CAPTION>
CLASS IB
-------------------------------
YEAR MAY 1,
ENDED 1997 TO
DECEMBER 31, DECEMBER 31,
1998 1997
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of period (b) ...... $ 10.26 $ 11.39
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.05 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................ 0.98 (0.31)
------- ---------
Total from investment operations ............. 1.03 (0.29)
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.18) (0.28)
Dividends in excess of net investment
income ...................................... -- --
Distributions from realized gains ............ (0.00) (0.56)
-------- ---------
Total dividends and distributions ............ (0.18) (0.84)
-------- ---------
Net asset value, end of period ................ $ 11.11 $ 10.26
======== =========
Total return (c) .............................. 10.30% ( 2.54)%
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............. $ 7,543 $ 3,286
Ratio of expenses to average net assets ....... 1.31% 1.38%(d)
Ratio of net investment income to average
net assets ................................... 0.44% 0.20%(d)
Portfolio turnover rate ....................... 59% 59%
</TABLE>
<PAGE>
ALLIANCE AGGRESSIVE STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 36.22 $ 35.85 $ 35.68 $ 30.63 $ 31.89
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.09 0.04 0.09 0.10 0.04
Net realized and unrealized gain (loss) on
investments .................................. (0.28) 3.71 7.52 9.54 (1.26)
---------- --------- --------- --------- ---------
Total from investment operations .............. (0.19) 3.75 7.61 9.64 (1.22)
---------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.16) (0.05) (0.09) (0.10) (0.04)
Dividends in excess of net investment
income ....................................... -- -- (0.00) -- --
Distributions from realized gains ............. (1.72) (3.33) (7.33) (4.49) --
Distributions in excess of realized gains ..... -- -- (0.02) -- --
Tax return of capital distributions ........... -- -- -- -- (0.00)
---------- ---------- ---------- ---------- ---------
Total dividends and distributions ............. (1.88) (3.38) (7.44) (4.59) (0.04)
---------- ---------- ---------- ---------- ---------
Net asset value, end of period ................. $ 34.15 $ 36.22 $ 35.85 $ 35.68 $ 30.63
========== ========== ========== ========== =========
Total return (c) ............................... 0.29% 10.94% 22.20% 31.63% ( 3.81)%
========== ========== ========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $4,346,907 $4,589,771 $3,865,256 $2,700,515 $1,832,164
Ratio of expenses to average net assets ........ 0.56% 0.54% 0.48% 0.49% 0.49%
Ratio of net investment income (loss) to
average net assets ............................ 0.24% 0.11% 0.24% 0.28% 0.12%
Portfolio turnover rate ........................ 105% 123% 108% 127% 92%
<CAPTION>
CLASS IB
-------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
------------------------ DECEMBER 31,
1998 1997 1996
------------ ----------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 36.13 $ 35.83 $ 37.28
------- ------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.01 (0.11) (0.01)
Net realized and unrealized gain (loss) on
investments .................................. (0.29) 3.77 0.85
-------- ------- ----------
Total from investment operations .............. (0.28) 3.66 0.84
-------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.12) (0.03) --
Dividends in excess of net investment
income ....................................... -- -- (0.02)
Distributions from realized gains ............. (1.72) (3.33) (0.23)
Distributions in excess of realized gains ..... -- -- (2.04)
Tax return of capital distributions ........... -- -- --
-------- ------- ----------
Total dividends and distributions ............. (1.84) (3.36) (2.29)
-------- ------- ----------
Net asset value, end of period ................. $ 34.01 $ 36.13 $ 35.83
======== ======= ==========
Total return (c) ............................... 0.05% 10.66% 2.32%
======== ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $153,782 $73,486 $ 613
Ratio of expenses to average net assets ........ 0.82% 0.81% 0.73%(d)
Ratio of net investment income (loss) to
average net assets ............................ 0.02% (0.28)% (0.10)%(d)
Portfolio turnover rate ........................ 105% 123% 108%
</TABLE>
85
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE SMALL CAP GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
--------------------------------- -----------------------------------
YEAR MAY 1, YEAR MAY 1,
ENDED 1997 TO ENDED 1997 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997
-------------- ---------------- -------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 12.35 $ 10.00 $ 12.34 $ 10.00
------- -------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .................. 0.01 0.01 ( 0.02) ( 0.01)
Net realized and unrealized gain (loss) on
investments .................................. ( 0.54) 2.65 ( 0.53) 2.65
------- -------- ------- ---------
Total from investment operations .............. ( 0.53) 2.66 ( 0.55) 2.64
------- -------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... -- ( 0.01) -- --
Distributions from realized gains ............. -- ( 0.30) -- ( 0.30)
------- -------- ------- ---------
Total dividends and distributions ............. -- ( 0.31) -- ( 0.30)
------- -------- ------- ---------
Net asset value, end of period ................. $ 11.82 $ 12.35 $ 11.79 $ 12.34
======= ======== ======= =========
Total return (c) ............................... ( 4.28)% 26.74% ( 4.44)% 26.57%
======= ======== ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $198,360 $ 94,676 $112,254 $ 46,324
Ratio of expenses to average net assets ........ 0.96% 0.95%(d) 1.20% 1.15%(d)
Ratio of net investment income (loss) to
average net assets ............................ 0.08% 0.10%(d) ( 0.17)% ( 0.12)%(d)
Portfolio turnover rate ........................ 94% 96% 94% 96%
</TABLE>
ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 11.89 $ 11.29 $ 11.52 $ 10.15 $ 11.12
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.49 0.49 0.50 0.60 0.55
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 1.12 0.97 0.07 1.43 ( 1.00)
------- ------- ------- ------- -------
Total from investment operations .............. 1.61 1.46 0.57 2.03 ( 0.45)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.48) ( 0.49) ( 0.51) ( 0.59) ( 0.52)
Distributions from realized gains ............. ( 0.70) ( 0.37) ( 0.27) ( 0.07) --
Distributions in excess of realized gains ..... -- -- ( 0.02) -- --
-------- -------- -------- -------- -------
Total dividends and distributions ............. ( 1.18) ( 0.86) ( 0.80) ( 0.66) ( 0.52)
-------- -------- -------- -------- -------
Net asset value, end of period ................. $ 12.32 $ 11.89 $ 11.29 $ 11.52 $ 10.15
======== ======== ======== ======== =======
Total return (c) ............................... 13.88% 13.25% 5.21% 20.40% ( 4.10)%
======== ======== ======== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $355,441 $307,847 $282,402 $252,101 $173,691
Ratio of expenses to average net assets ........ 0.53% 0.57% 0.61% 0.59% 0.59%
Ratio of net investment income to average
net assets .................................... 3.99% 4.17% 4.48% 5.48% 5.22%
Portfolio turnover rate ........................ 103% 206% 181% 287% 228%
<PAGE>
<CAPTION>
CLASS IB
-------------------------------
YEAR MAY 1,
ENDED 1997 TO
DECEMBER 31, DECEMBER 31,
1998 1997
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of period (b) ....... $ 11.88 $ 11.29
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.46 0.31
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 1.12 1.01
------- ---------
Total from investment operations .............. 1.58 1.32
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.45) ( 0.36)
Distributions from realized gains ............. ( 0.70) ( 0.37)
Distributions in excess of realized gains ..... -- --
------- ---------
Total dividends and distributions ............. ( 1.15) ( 0.73)
------- ---------
Net asset value, end of period ................. $ 12.31 $ 11.88
======= =========
Total return (c) ............................... 13.60% 11.84%
======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $32,653 $ 5,694
Ratio of expenses to average net assets ........ 0.78% 0.80%(d)
Ratio of net investment income to average
net assets .................................... 3.68% 3.82%(d)
Portfolio turnover rate ........................ 103% 206%
</TABLE>
86
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Continued)
December 31, 1998
ALLIANCE BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 17.58 $ 16.64 $ 16.76 $ 14.87 $ 16.67
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.56 0.58 0.53 0.54 0.45
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 2.54 1.86 1.31 2.36 ( 1.78)
--------- --------- --------- --------- ---------
Total from investment operations .............. 3.10 2.44 1.84 2.90 ( 1.33)
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.50) ( 0.59) ( 0.53) ( 0.54) ( 0.44)
Dividends in excess of net investment
income ....................................... -- -- -- -- ( 0.03)
Distributions from realized gains ............. ( 1.67) ( 0.91) ( 1.40) ( 0.47) --
Distributions in excess of realized gains ..... -- -- ( 0.03) -- --
Tax return of capital distributions ........... -- -- -- -- ( 0.00)
---------- ---------- ---------- ---------- ---------
Total dividends and distributions ............. ( 2.17) ( 1.50) ( 1.96) ( 1.01) ( 0.47)
---------- ---------- ---------- ---------- ---------
Net asset value, end of period ................. $ 18.51 $ 17.58 $ 16.64 $ 16.76 $ 14.87
========== ========== ========== ========== =========
Total return (c) ............................... 18.11% 15.06% 11.68% 19.75% ( 8.02)%
========== ========== ========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $1,936,429 $1,724,089 $1,637,856 $1,523,142 $1,329,820
Ratio of expenses to average net assets ........ 0.45% 0.45% 0.41% 0.40% 0.39%
Ratio of net investment income to average
net assets .................................... 3.00% 3.30% 3.15% 3.33% 2.87%
Portfolio turnover rate ........................ 95% 146% 177% 186% 115%
<CAPTION>
CLASS IB
----------------
JULY 8, 1998
TO
DECEMBER 31,
1998
----------------
<S> <C>
Net asset value, beginning of period (b) ....... $ 19.48
---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.24
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions ................................. 0.66
---------
Total from investment operations .............. 0.90
---------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.20)
Dividends in excess of net investment
income ....................................... --
Distributions from realized gains ............. ( 1.67)
Distributions in excess of realized gains ..... --
Tax return of capital distributions ........... --
---------
Total dividends and distributions ............. ( 1.87)
---------
Net asset value, end of period ................. $ 18.51
=========
Total return (c) ............................... 4.92%
=========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $ 10
Ratio of expenses to average net assets ........ 0.70%(d)
Ratio of net investment income to average
net assets .................................... 2.65%(d)
Portfolio turnover rate ........................ 95%
</TABLE>
<PAGE>
ALLIANCE GROWTH INVESTORS PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------- -------------- -------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 18.55 $ 17.20 $ 17.68 $ 14.66 $ 15.61
--------- --------- --------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.41 0.41 0.40 0.57 0.50
Net realized and unrealized gain (loss) on
on investments and foreign currency
transactions ................................. 3.03 2.43 1.66 3.24 ( 0.98)
--------- --------- --------- ------- -------
Total from investment operations .............. 3.44 2.84 2.06 3.81 ( 0.48)
--------- --------- --------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.41) ( 0.46) ( 0.40) ( 0.54) ( 0.46)
Dividends in excess of net investment
income ....................................... -- -- ( 0.03) ( 0.01) ( 0.01)
Distributions from realized gains ............. ( 1.71) ( 1.03) ( 2.10) ( 0.24) --
Distributions in excess of realized gains ..... -- -- ( 0.01) -- --
---------- ---------- ---------- -------- -------
Total dividends and distributions ............. ( 2.12) ( 1.49) ( 2.54) ( 0.79) ( 0.47)
---------- ---------- ---------- -------- -------
Net asset value, end of period ................. $ 19.87 $ 18.55 $ 17.20 $ 17.68 $ 14.66
========== ========== ========== ======== =======
Total return (c) ............................... 19.13% 16.87% 12.61% 26.37% ( 3.15)%
========== ========== ========== ======== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $1,963,074 $1,630,389 $1,301,643 $896,134 $492,478
Ratio of expenses to average net assets ........ 0.55% 0.57% 0.57% 0.56% 0.59%
Ratio of net investment income to average
net assets .................................... 2.10% 2.18% 2.31% 3.43% 3.32%
Portfolio turnover rate ........................ 102% 121% 190% 107% 131%
<CAPTION>
CLASS IB
------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
----------------------- DECEMBER 31,
1998 1997 1996
----------- ----------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period (b) ....... $ 18.52 $ 17.19 $ 16.78
------- ------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.36 0.36 0.07
Net realized and unrealized gain (loss) on
on investments and foreign currency
transactions ................................. 3.03 2.43 0.71
------- ------- ----------
Total from investment operations .............. 3.39 2.79 0.78
------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income .......... ( 0.36) ( 0.43) ( 0.02)
Dividends in excess of net investment
income ....................................... -- -- ( 0.09)
Distributions from realized gains ............. ( 1.71) ( 1.03) ( 0.02)
Distributions in excess of realized gains ..... -- -- ( 0.24)
------- ------- ----------
Total dividends and distributions ............. ( 2.07) ( 1.46) ( 0.37)
------- ------- ----------
Net asset value, end of period ................. $ 19.84 $ 18.52 $ 17.19
======= ======= ==========
Total return (c) ............................... 18.83% 16.58% 4.64%
======= ======= ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $92,027 $35,730 $ 472
Ratio of expenses to average net assets ........ 0.80% 0.82% 0.84% (d)
Ratio of net investment income to average
net assets .................................... 1.85% 1.88% 1.69% (d)
Portfolio turnover rate ........................ 102% 121% 190%
</TABLE>
87
<PAGE>
THE HUDSON RIVER TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
December 31, 1998
- ---------
(a) Net investment income and capital changes per share are based upon
monthly average shares outstanding.
(b) Date as of which funds were first allocated to the Portfolios are as
follows:
Class IA:
Alliance Common Stock Portfolio--June 16, 1975
Alliance Money Market Portfolio--July 13, 1981
Alliance Balanced Portfolio--January 27, 1986
Alliance Aggressive Stock Portfolio--January 27, 1986
Alliance High Yield Portfolio--January 2, 1987
Alliance Global Portfolio--August 27, 1987
Alliance Conservative Investors Portfolio--October 2, 1989
Alliance Growth Investors Portfolio--October 2, 1989
Alliance Intermediate Government Securities Portfolio--April 1, 1991
Alliance Quality Bond Portfolio--October 1, 1993
Alliance Growth and Income Portfolio--October 1, 1993
Alliance Equity Index Portfolio--March 1, 1994
Alliance International Portfolio--April 3, 1995
Alliance Small Cap Growth Portfolio--May 1, 1997
Class IB:
Alliance Money Market, Alliance High Yield, Alliance Common Stock, Alliance
Global, Alliance Aggressive Stock and Alliance Growth Investors
Portfolios--October 2, 1996.
Alliance Intermediate Government Securities, Alliance Growth and Income,
Alliance Equity Index, Alliance International, Alliance Small Cap Growth and
Alliance Conservative Investors Portfolios--May 1, 1997.
Alliance Quality Bond and Alliance Balanced Portfolios--July 8, 1998.
(c) Total return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the
period, and redemption on the last day of the period. Total return
calculated for a period of less than one year is not annualized.
(d) Annualized.
(e) On February 22, 1994, shares of the Alliance Intermediate Government
Securities Portfolio of the Trust were substituted for shares of the
Trust's Alliance Short-Term World Income Portfolio.
88
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
The Hudson River Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Alliance Money
Market Portfolio, Alliance Intermediate Government Securities Portfolio,
Alliance Quality Bond Portfolio, Alliance High Yield Portfolio, Alliance Growth
and Income Portfolio, Alliance Equity Index Portfolio, Alliance Common Stock
Portfolio, Alliance Global Portfolio, Alliance International Portfolio,
Alliance Aggressive Stock Portfolio, Alliance Small Cap Growth Portfolio,
Alliance Conservative Investors Portfolio, Alliance Balanced Portfolio and
Alliance Growth Investors Portfolio (constituting the fourteen portfolios of
The Hudson River Trust, hereafter referred to as the "Trust") at December 31,
1998, the results of each of their operations for the year then ended, and the
changes in each of their net assets and the financial highlights for each of
the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 8, 1999
89
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
<TABLE>
<CAPTION>
MERRILL LYNCH MERRILL LYNCH
BASIC VALUE WORLD
EQUITY STRATEGY
PORTFOLIO PORTFOLIO
--------------- ---------------
<S> <C> <C>
ASSETS:
Investments at value (Note 1) ....................................... $178,204,274 $ 30,464,229
Cash ................................................................ 85 1,956
Foreign cash (Note 1) ............................................... -- 4,133
Receivable for securities sold ...................................... 70,622 --
Unrealized appreciation of foreign currency contracts (Note 1) ...... -- 1,904
Short-term investments held as collateral for loaned securities ..... 3,993,300 3,536,218
Receivable from Separate Accounts for Trust shares sold ............. 1,220,708 139,190
Receivable for forward commitments .................................. -- --
Market value of swap agreements (Note 1) ............................ -- --
Variation margin receivable on futures contracts .................... -- --
Receivable from investment manager .................................. -- --
Dividends, interest and other receivables ........................... 168,507 150,603
Deferred organizational costs (Note 1) .............................. 20,979 20,979
Other assets ........................................................ 936 212
------------ ------------
Total assets ....................................................... 183,679,411 34,319,424
------------ ------------
LIABILITIES:
Payable to custodian ................................................ 4,142 11,184
Payable for securities purchased .................................... 5,266,456 --
Unrealized depreciation of foreign currency contracts (Note 1) ...... -- 1,892
Collateral held for loaned securities ............................... 3,993,300 3,536,218
Interest payable on swap agreements ................................. -- --
Variation margin payable on futures contracts (Note 1) .............. -- --
Distribution fees payable ........................................... 34,789 6,035
Investment management fees payable .................................. 49,403 26,479
Trustees' fees payable .............................................. 5,816 2,639
Payable to Separate Accounts for Trust shares redeemed .............. 116,152 81,559
Forward commitments at value (Note 1) ............................... -- --
Overdraft payable ................................................... -- --
Accrued expenses (Note 1) ........................................... 105,150 22,456
------------ ------------
Total liabilities .................................................. 9,575,208 3,688,462
------------ ------------
NET ASSETS .......................................................... $174,104,203 $ 30,630,962
============ ============
Investments at cost ................................................. $178,491,483 $ 27,988,402
============ ============
Foreign cash at cost ................................................ -- $ 3,991
============ ============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital .................................................... $174,475,456 $ 29,940,774
Accumulated undistributed (overdistributed) net investment
income ............................................................ (175) (117,119)
Accumulated net realized gain (loss) ............................... (83,869) (1,669,496)
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ............... (287,209) 2,476,803
------------ ------------
NET ASSETS .......................................................... $174,104,203 $ 30,630,962
============ ============
CLASS IA SHARES:
Net Assets .......................................................... $ -- $ --
============ ============
Shares outstanding (Unlimited amount authorized: no par value) . -- --
============ ============
Net asset value, offering and redemption price per share (Note 1) $ -- $ --
============ ============
CLASS IB SHARES:
Net Assets .......................................................... $174,104,203 $ 30,630,962
============ ============
Shares outstanding (Unlimited amount authorized: no par value)....... 14,081,141 2,802,280
============ ============
Net asset value, offering and redemption price per share (Note 1). $ 12.36 $ 10.93
============ ============
<PAGE>
<CAPTION>
MFS
EMERGING GROWTH MFS EQ/PUTNAM
COMPANIES RESEARCH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
----------------- --------------- ----------------
<S> <C> <C> <C>
ASSETS:
Investments at value (Note 1) ....................................... $ 460,562,340 $406,316,091 $ 76,972,936
Cash ................................................................ -- 60,359 5,380
Foreign cash (Note 1) ............................................... 40 27 --
Receivable for securities sold ...................................... 11,354,574 1,222,583 227,333
Unrealized appreciation of foreign currency contracts (Note 1) ...... -- 2,918 19,828
Short-term investments held as collateral for loaned securities ..... 29,725,924 17,820,637 7,601,915
Receivable from Separate Accounts for Trust shares sold ............. 4,298,348 6,773,602 1,000,567
Receivable for forward commitments .................................. -- -- --
Market value of swap agreements (Note 1) ............................ -- -- --
Variation margin receivable on futures contracts .................... -- -- --
Receivable from investment manager .................................. -- -- --
Dividends, interest and other receivables ........................... 67,977 215,173 366,422
Deferred organizational costs (Note 1) .............................. 20,979 20,979 20,979
Other assets ........................................................ 1,905 1,916 415
------------- ------------ ------------
Total assets ....................................................... 506,032,087 432,434,285 86,215,775
------------- ------------ ------------
LIABILITIES:
Payable to custodian ................................................ 12,311 13,276 11,887
Payable for securities purchased .................................... 1,833,609 6,439,202 2,518,539
Unrealized depreciation of foreign currency contracts (Note 1) ...... -- 168 20,330
Collateral held for loaned securities ............................... 29,725,924 17,820,637 7,601,915
Interest payable on swap agreements ................................. -- -- --
Variation margin payable on futures contracts (Note 1) .............. -- -- --
Distribution fees payable ........................................... 87,399 76,337 14,665
Investment management fees payable .................................. 139,593 124,473 17,430
Trustees' fees payable .............................................. 11,588 11,725 3,527
Payable to Separate Accounts for Trust shares redeemed .............. 1,852,087 127,022 3,559
Forward commitments at value (Note 1) ............................... -- -- --
Overdraft payable ................................................... 4,874,593 -- --
Accrued expenses (Note 1) ........................................... 209,922 202,445 46,738
------------- ------------ ------------
Total liabilities .................................................. 38,747,026 24,815,285 10,238,590
------------- ------------ ------------
NET ASSETS .......................................................... $ 467,285,061 $407,619,000 $ 75,977,185
============= ============ ============
Investments at cost ................................................. $ 363,694,972 $347,692,676 $ 73,443,161
============= ============ ============
Foreign cash at cost ................................................ $ 40 $ 26 --
============= ============ ============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital .................................................... $ 383,715,033 $356,248,779 $ 71,835,655
Accumulated undistributed (overdistributed) net investment
income ............................................................ (314) 8,161 4,600
Accumulated net realized gain (loss) ............................... (13,297,024) (7,261,148) 606,975
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ............... 96,867,366 58,623,208 3,529,955
------------- ------------ ------------
NET ASSETS .......................................................... $ 467,285,061 $407,619,000 $ 75,977,185
============= ============ ============
CLASS IA SHARES:
Net Assets .......................................................... $ 5,977,946 $ -- $ --
============= ============ ============
Shares outstanding (Unlimited amount authorized: no par value) . 372,796 -- --
============= ============ ============
Net asset value, offering and redemption price per share (Note 1) $ 16.04 $ -- $ --
============= ============ ============
CLASS IB SHARES:
Net Assets .......................................................... $ 461,307,115 $407,619,000 $ 75,977,185
============= ============ ============
Shares outstanding (Unlimited amount authorized: no par value)....... 28,762,124 28,690,376 6,247,664
============= ============ ============
Net asset value, offering and redemption price per share (Note 1). $ 16.04 $ 14.21 $ 12.16
============= ============ ============
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM T. ROWE PRICE WARBURG PINCUS MORGAN STANLEY
GROWTH & INCOME INTERNATIONAL INVESTORS T. ROWE PRICE INTERNATIONAL SMALL COMPANY EMERGING
VALUE EQUITY GROWTH EQUITY INCOME STOCK VALUE MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------- --------------- --------------- ----------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
$ 458,183,986 $143,127,639 $180,701,091 $ 244,507,873 $123,442,396 $ 167,467,416 $ 36,389,482
597 5,041 174 478 10,785,789 134 4,192,904
-- 511 -- -- -- -- 1,017,013
158,994 1,558,107 436,093 -- -- 407,864 54,383
-- 146,196 -- -- -- -- 87,435
14,127,780 3,629,840 4,435,973 2,553,824 1,750,200 1,805,000 --
2,172,484 526,853 1,648,215 1,694,868 840,933 896,223 280,486
-- -- -- -- -- -- --
-- -- -- -- -- -- 6,099
-- -- -- -- -- -- --
-- -- -- -- -- -- --
805,148 167,587 75,775 545,672 206,796 65,868 122,980
20,979 20,979 20,979 20,979 20,979 20,979 22,895
2,465 827 689 1,643 7,385 1,543 275
------------- ------------ ------------ ------------- ------------ ------------- -------------
475,472,433 149,183,580 187,318,989 249,325,337 137,054,478 170,665,027 42,173,952
------------- ------------ ------------ ------------- ------------ ------------- -------------
14,590 39,178 7,345 8,804 22,906 8,020 35,857
-- 645,804 7,691,674 1,922,525 -- 958,021 487,089
-- 861,095 -- -- -- -- 170,123
14,127,780 3,629,840 4,435,973 2,553,824 1,750,200 1,805,000 --
-- -- -- -- -- -- 1,020
-- -- -- -- -- -- --
89,530 27,531 31,668 48,098 25,982 32,206 8,247
155,299 93,864 52,003 80,863 90,308 68,756 47,449
14,293 5,929 5,082 9,589 7,553 9,359 1,495
75,766 73,452 -- 161,482 405,252 159,508 27,275
-- -- -- -- -- -- --
-- -- -- -- -- -- --
250,914 86,157 80,269 124,134 98,940 130,904 36,175
------------- ------------ ------------ ------------- ------------ ------------- -------------
14,728,172 5,462,850 12,304,014 4,909,319 2,401,141 3,171,774 814,730
------------- ------------ ------------ ------------- ------------ ------------- -------------
$ 460,744,261 $143,720,730 $175,014,975 $ 244,416,018 $134,653,337 $ 167,493,253 $ 41,359,222
============= ============ ============ ============= ============ ============= =============
$ 431,106,788 $126,041,583 $143,213,317 $ 234,198,903 $114,376,426 $ 166,971,230 $ 38,914,579
============= ============ ============ ============= ============ ============= =============
-- $ 512 -- -- -- -- $ 1,035,286
============= ============ ============ ============= ============ ============= =============
$ 429,912,421 $129,456,209 $141,856,538 $ 233,651,379 $127,311,141 $ 187,720,498 $ 54,618,635
26,121 699,943 25,684 34,184 (158,252) (291) (35,802)
3,728,521 (2,809,201) (4,355,021) 421,464 (1,569,911) (20,723,140) (10,598,571)
27,077,198 16,373,779 37,487,774 10,308,991 9,070,359 496,186 (2,625,040)
------------- ------------ ------------ ------------- ------------ ------------- -------------
$ 460,744,261 $143,720,730 $175,014,975 $ 244,416,018 $134,653,337 $ 167,493,253 $ 41,359,222
============= ============ ============ ============= ============ ============= =============
$ -- $ -- $ -- $ 2,414,564 $ -- $ 747,354 $ --
============= ============ ============ ============= ============ ============= =============
-- -- -- 190,575 -- 70,560 --
============= ============ ============ ============= ============ ============= =============
$ -- $ -- $ -- $ 12.67 $ -- $ 10.59 $ --
============= ============ ============ ============= ============ ============= =============
$ 460,744,261 $143,720,730 $175,014,975 $ 242,001,454 $134,653,337 $ 166,745,899 $ 41,359,222
============= ============ ============ ============= ============ ============= =============
36,079,541 11,049,766 10,423,104 19,101,270 12,131,062 15,716,227 7,149,250
============= ============ ============ ============= ============ ============= =============
$ 12.77 $ 13.01 $ 16.79 $ 12.67 $ 11.10 $ 10.61 $ 5.79
============= ============ ============ ============= ============ ============= =============
</TABLE>
2
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
<TABLE>
<CAPTION>
BT BT
EQUITY 500 INTERNATIONAL
INDEX EQUITY INDEX
PORTFOLIO PORTFOLIO
----------------- ---------------
<S> <C> <C>
ASSETS:
Investments at value (Note 1) ........................................ $ 236,088,036 $47,993,849
Cash ................................................................. 5,211 --
Foreign cash (Note 1) ................................................ -- 803,181
Receivable for securities sold ....................................... 1,190,313 --
Unrealized appreciation of foreign currency contracts (Note 1) ....... -- 30,402
Short-term investments held as collateral for loaned securities ...... 20,909,620 484,745
Receivable from Separate Accounts for Trust shares sold .............. 3,905,133 277,598
Receivable for forward commitments ................................... -- --
Market value of swap agreements (Note 1) ............................. -- --
Variation margin receivable on futures contracts ..................... 21,362 158,526
Receivable from investment manager ................................... -- 2,030
Dividends, interest and other receivables ............................ 205,181 43,141
Deferred organizational costs (Note 1) ............................... 25,074 25,074
Other assets ......................................................... 970 5,443
------------- -----------
Total assets ........................................................ 262,350,900 49,823,989
------------- -----------
LIABILITIES:
Payable to custodian ................................................. 12,568 9,106
Payable for securities purchased ..................................... 17,030,709 102,059
Unrealized depreciation of foreign currency contracts (Note 1) ....... -- 7,084
Collateral held for loaned securities ................................ 20,909,620 484,745
Interest payable on swap agreements .................................. -- --
Variation margin payable on futures contracts (Note 1) ............... -- --
Distribution fees payable ............................................ 40,805 9,179
Investment management fees payable ................................... 11,817 --
Trustees' fees payable ............................................... 2,392 935
Payable to Separate Accounts for Trust shares redeemed ............... -- 303,862
Forward commitments at value (Note 1) ................................ -- --
Overdraft payable .................................................... -- 44,781
Accrued expenses (Note 1) ............................................ 96,136 51,898
------------- -----------
Total liabilities ................................................... 38,104,047 1,013,649
------------- -----------
NET ASSETS ........................................................... $ 224,246,853 $48,810,340
============= ===========
Investments at cost .................................................. $ 214,993,662 $43,550,148
============= ===========
Foreign cash at cost ................................................. -- $ 799,466
============= ===========
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ..................................................... $ 202,454,843 $44,480,534
Accumulated undistributed (overdistributed) net investment
income ............................................................. 3,162 (18,030)
Accumulated net realized gain (loss) ................................ 647,013 (282,853)
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ................ 21,141,835 4,630,689
------------- -----------
NET ASSETS ........................................................... $ 224,246,853 $48,810,340
============= ===========
CLASS IA SHARES:
Net Assets ........................................................... $ -- $ 735,037
============= ===========
Shares outstanding (Unlimited amount authorized: no par value) . -- 62,077
============= ===========
Net asset value, offering and redemption price per share (Note 1) $ -- $ 11.84
============= ===========
CLASS IB SHARES:
Net Assets ........................................................... $ 224,246,853 $48,075,303
============= ===========
Shares outstanding (Unlimited amount authorized: no par value) . 18,015,252 4,057,064
============= ===========
Net asset value, offering and redemption price per share (Note 1) $ 12.45 $ 11.85
============= ===========
<PAGE>
<CAPTION>
BT SMALL LAZARD
COMPANY JPM LARGE CAP
INDEX CORE BOND VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- --------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments at value (Note 1) ........................................ $34,128,789 $110,938,174 $76,158,954
Cash ................................................................. 6,132 17,589 9,763
Foreign cash (Note 1) ................................................ -- -- --
Receivable for securities sold ....................................... 48,550 6,055,831 173,588
Unrealized appreciation of foreign currency contracts (Note 1) ....... -- 76,354 --
Short-term investments held as collateral for loaned securities ...... 4,095,271 1,381,000 1,512,300
Receivable from Separate Accounts for Trust shares sold .............. 181,986 1,007,158 571,212
Receivable for forward commitments ................................... -- 4,510,613 --
Market value of swap agreements (Note 1) ............................. -- -- --
Variation margin receivable on futures contracts ..................... 2,202 -- --
Receivable from investment manager ................................... 772 -- --
Dividends, interest and other receivables ............................ 40,150 968,404 79,171
Deferred organizational costs (Note 1) ............................... 25,074 25,074 25,074
Other assets ......................................................... 115 165 144
----------- ------------ -----------
Total assets ........................................................ 38,529,041 124,980,362 78,530,206
----------- ------------ -----------
LIABILITIES:
Payable to custodian ................................................. 17,001 2,776 3,501
Payable for securities purchased ..................................... 1,755,281 15,650,900 2,348,530
Unrealized depreciation of foreign currency contracts (Note 1) ....... -- 26,995 --
Collateral held for loaned securities ................................ 4,095,271 1,381,000 1,512,300
Interest payable on swap agreements .................................. -- -- --
Variation margin payable on futures contracts (Note 1) ............... -- 2,250 --
Distribution fees payable ............................................ 6,057 20,106 14,257
Investment management fees payable ................................... -- 24,949 15,324
Trustees' fees payable ............................................... 615 1,034 818
Payable to Separate Accounts for Trust shares redeemed ............... -- -- --
Forward commitments at value (Note 1) ................................ -- 4,489,258 --
Overdraft payable .................................................... -- -- --
Accrued expenses (Note 1) ............................................ 46,128 54,854 47,827
----------- ------------ -----------
Total liabilities ................................................... 5,920,353 21,654,122 3,942,557
----------- ------------ -----------
NET ASSETS ........................................................... $32,608,688 $103,326,240 $74,587,649
=========== ============ ===========
Investments at cost .................................................. $34,873,755 $110,699,797 $69,235,746
=========== ============ ===========
Foreign cash at cost ................................................. -- -- --
=========== ============ ===========
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ..................................................... $33,367,380 $103,150,840 $68,198,892
Accumulated undistributed (overdistributed) net investment
income ............................................................. 5,196 (49,365) 2,707
Accumulated net realized gain (loss) ................................ (23,362) (62,988) (537,158)
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ................ (740,526) 287,753 6,923,208
----------- ------------ -----------
NET ASSETS ........................................................... $32,608,688 $103,326,240 $74,587,649
=========== ============ ===========
CLASS IA SHARES:
Net Assets ........................................................... $ -- $ -- $ --
=========== ============ ===========
Shares outstanding (Unlimited amount authorized: no par value) . -- -- --
=========== ============ ===========
Net asset value, offering and redemption price per share (Note 1) $ -- $ -- $ --
=========== ============ ===========
CLASS IB SHARES:
Net Assets ........................................................... $32,608,688 $103,326,240 $74,587,649
=========== ============ ===========
Shares outstanding (Unlimited amount authorized: no par value) . 3,412,415 9,774,919 6,248,365
=========== ============ ===========
Net asset value, offering and redemption price per share (Note 1) $ 9.56 $ 10.57 $ 11.94
=========== ============ ===========
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
LAZARD MFS
SMALL CAP EQ/EVERGREEN GROWTH WITH
VALUE FOUNDATION EQ/EVERGREEN INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C>
$ 51,426,111 -- -- --
2,400 $ 1,000 $ 1,000 $ 1,000
-- -- -- --
360,447 -- -- --
-- -- -- --
3,983,725 -- -- --
229,801 -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
69,818 -- -- --
25,074 -- -- --
148 -- -- --
------------- ------------ ------------ ------------
56,097,524 1,000 1,000 1,000
------------- ------------ ------------ ------------
2,039 -- -- --
990,148 -- -- --
-- -- -- --
3,983,725 -- -- --
-- -- -- --
-- -- -- --
9,708 -- -- --
18,764 -- -- --
743 -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
46,732 -- -- --
------------- ------------ ------------ ------------
5,051,859 -- -- --
------------- ------------ ------------ ------------
$ 51,045,665 $ 1,000 $ 1,000 $ 1,000
============= ============ ============ ============
$ 52,665,521 -- -- --
============= ============ ============ ============
-- -- -- --
============= ============ ============ ============
$ 52,961,056 $ 1,000 $ 1,000 $ 1,000
-- -- -- --
(675,981) -- -- --
(1,239,410) -- -- --
------------- ------------ ------------ ------------
$ 51,045,665 $ 1,000 $ 1,000 $ 1,000
============= ============ ============ ============
$ -- $ -- $ -- $ --
============= ============ ============ ============
-- -- -- --
============= ============ ============ ============
$ -- $ -- $ -- $ --
============= ============ ============ ============
$ 51,045,665 $ 1,000 $ 1,000 $ 1,000
============= ============ ============ ============
5,506,840 100 100 100
============= ============ ============ ============
$ 9.27 $ 10.00 $ 10.00 $ 10.00
============= ============ ============ ============
</TABLE>
4
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
MERRILL LYNCH MERRILL LYNCH
BASIC VALUE WORLD
EQUITY STRATEGY
PORTFOLIO PORTFOLIO
----------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $1,470 and $1,504
from affiliated companies for the
Morgan Stanley Emerging Markets
Equity Portfolio and BT International
Equity Index Portfolio, respectively) ..... $ 1,561,724 $ 230,167
Interest .................................... 1,005,517 487,278
Securities lending--Net ..................... 31,782 8,359
-------------- ------------
Total income .............................. 2,599,023 725,804
-------------- ------------
Expenses (Notes 1, 2, 3, 4 and 5):
Investment management fee ................... 632,783 179,486
Administrative fees ......................... 92,138 48,992
Custody fees ................................ 25,526 70,188
Distribution fees--Class IB ................. 287,628 64,102
Printing and mailing expenses ............... 123,975 33,375
Professional fees ........................... 33,842 6,090
Interest expense on swap agreements ......... -- --
Interest expense on loans ................... -- --
Trustees' fees (Note 7) ..................... 8,295 2,440
Amortization of deferred organizational
expense ................................... 6,322 6,322
Miscellaneous ............................... 4,279 1,802
-------------- ------------
Gross expenses ............................ 1,214,788 412,797
-------------- ------------
Waivers and reimbursements: (Note 6)
Waiver of investment management fee ......... (236,168) (104,468)
Reimbursement from investment
manager ................................... -- --
-------------- ------------
Total waivers and reimbursements .......... (236,168) (104,468)
-------------- ------------
Net expenses ................................ 978,620 308,329
-------------- ------------
NET INVESTMENT INCOME (LOSS) .................. 1,620,403 417,475
-------------- ------------
REALIZED AND UNREALIZED GAIN
(LOSS) (NOTE 1):
Realized Gain (Loss) on:
Securities .................................. 5,652,703 (1,242,455)
Swap agreements ............................. -- --
Options written ............................. -- --
Foreign currency transactions ............... -- (323,399)
Futures contracts ........................... -- --
-------------- ------------
Realized gain (loss)--net .................... 5,652,703 (1,565,854)
-------------- ------------
Change in Unrealized Appreciation
(Depreciation) on:
Securities .................................. (239,779) 2,545,676
Swap agreements ............................. -- --
Foreign currency transactions ............... -- 17,668
Forward commitments ......................... -- --
Futures contracts ........................... -- --
-------------- ------------
Unrealized appreciation
(depreciation)--net ......................... (239,779) 2,563,344
-------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ...... 5,412,924 997,490
-------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ................................... $ 7,033,327 $ 1,414,965
============== ============
*Foreign taxes withheld on dividends .......... $ -- $ 21,887
============== ============
*Foreign taxes withheld on interest ........... $ -- $ 978
============== ============
<PAGE>
<CAPTION>
MFS
EMERGING GROWTH MFS EQ/PUTNAM
COMPANIES RESEARCH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
------------------ --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (including $1,470 and $1,504
from affiliated companies for the
Morgan Stanley Emerging Markets
Equity Portfolio and BT International
Equity Index Portfolio, respectively) ..... $ 316,928 $ 2,259,276 $ 667,576
Interest .................................... 865,796 765,408 1,169,302
Securities lending--Net ..................... 157,652 66,086 19,172
---------------- ------------ -----------
Total income .............................. 1,340,376 3,090,770 1,856,050
---------------- ------------ -----------
Expenses (Notes 1, 2, 3, 4 and 5):
Investment management fee ................... 1,351,932 1,319,969 269,939
Administrative fees ......................... 166,093 160,767 65,412
Custody fees ................................ 76,581 80,756 73,287
Distribution fees--Class IB ................. 613,697 599,986 122,699
Printing and mailing expenses ............... 252,377 257,786 55,598
Professional fees ........................... 68,932 68,436 12,925
Interest expense on swap agreements ......... -- -- --
Interest expense on loans ................... 232 11 --
Trustees' fees (Note 7) ..................... 15,775 15,851 3,787
Amortization of deferred organizational
expense ................................... 6,322 6,322 6,322
Miscellaneous ............................... 8,027 8,188 2,384
---------------- ------------ -----------
Gross expenses ............................ 2,559,968 2,518,072 612,353
---------------- ------------ -----------
Waivers and reimbursements: (Note 6)
Waiver of investment management fee ......... (470,590) (477,580) (169,979)
Reimbursement from investment
manager ................................... -- -- --
---------------- ------------ -----------
Total waivers and reimbursements .......... (470,590) (477,580) (169,979)
---------------- ------------ -----------
Net expenses ................................ 2,089,378 2,040,492 442,374
---------------- ------------ -----------
NET INVESTMENT INCOME (LOSS) .................. (749,002) 1,050,278 1,413,676
---------------- ------------ -----------
REALIZED AND UNREALIZED GAIN
(LOSS) (NOTE 1):
Realized Gain (Loss) on:
Securities .................................. (12,432,018) (6,397,924) 1,311,316
Swap agreements ............................. -- -- --
Options written ............................. -- -- 30
Foreign currency transactions ............... (12,052) (19,945) (41,319)
Futures contracts ........................... -- -- --
---------------- ------------ -----------
Realized gain (loss)--net .................... (12,444,070) (6,417,869) 1,270,027
---------------- ------------ -----------
Change in Unrealized Appreciation
(Depreciation) on:
Securities .................................. 96,627,325 57,047,662 2,686,762
Swap agreements ............................. -- -- --
Foreign currency transactions ............... 161 165 2,011
Forward commitments ......................... -- -- --
Futures contracts ........................... -- -- --
---------------- ------------ -----------
Unrealized appreciation
(depreciation)--net ......................... 96,627,486 57,047,827 2,688,773
---------------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ...... 84,183,416 50,629,958 3,958,800
---------------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS ................................... $ 83,434,414 $ 51,680,236 $ 5,372,476
================ ============ ===========
*Foreign taxes withheld on dividends .......... $ 2,701 $ 22,076 $ 117
================ ============ ===========
*Foreign taxes withheld on interest ........... $ -- $ -- $ 148
================ ============ ===========
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM
GROWTH & INTERNATIONAL INVESTORS
INCOME VALUE EQUITY GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------ ------------------ ------------------
<S> <C> <C>
$ 5,596,754 $ 1,299,081 $ 644,026
844,479 451,636 235,113
37,162 17,954 16,621
--------------- --------------- ---------------
6,478,395 1,768,671 895,760
--------------- --------------- ---------------
1,654,313 673,315 497,899
191,609 92,040 80,365
88,320 242,399 46,079
751,961 240,470 226,318
331,477 110,585 94,385
87,634 26,305 23,973
-- -- --
-- -- --
20,302 6,840 6,347
6,322 6,322 6,322
10,528 8,021 3,372
--------------- --------------- ---------------
3,142,466 1,406,297 985,060
--------------- --------------- ---------------
(585,144) (251,387) (214,923)
-- -- --
--------------- --------------- ---------------
(585,144) (251,387) (214,923)
--------------- --------------- ---------------
2,557,322 1,154,910 770,137
--------------- --------------- ---------------
3,921,073 613,761 125,623
--------------- --------------- ---------------
7,671,440 (2,629,940) (4,124,377)
-- -- --
-- -- --
-- (165,381) --
-- -- --
--------------- --------------- ---------------
7,671,440 (2,795,321) (4,124,377)
--------------- --------------- ---------------
24,262,285 17,262,604 34,949,382
-- -- --
-- (666,755) --
-- -- --
-- -- --
--------------- --------------- ---------------
24,262,285 16,595,849 34,949,382
--------------- --------------- ---------------
31,933,725 13,800,528 30,825,005
--------------- --------------- ---------------
$ 35,854,798 $ 14,414,289 $ 30,950,628
=============== =============== ===============
$ -- $ 191,141 $ --
=============== =============== ===============
$ -- $ -- $ --
=============== =============== ===============
<PAGE>
<CAPTION>
EQ/PUTNAM T. ROWE PRICE WARBURG PINCUS MORGAN STANLEY
GROWTH & T. ROWE PRICE INTERNATIONAL SMALL COMPANY EMERGING
INCOME VALUE EQUITY INCOME STOCK VALUE MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------ ------------------ ------------------ ------------------ -----------------
<S> <C> <C> <C> <C>
$ 5,596,754 $ 4,823,366 $ 1,646,765 $ 1,377,899 $ 602,417
844,479 684,439 313,377 876,633 202,965
37,162 33,428 11,684 39,376 132
--------------- --------------- --------------- ---------------- ------------
6,478,395 5,541,233 1,971,826 2,293,908 805,514
--------------- --------------- --------------- ---------------- ------------
1,654,313 1,000,224 788,805 1,012,129 364,795
191,609 131,283 120,081 113,472 58,490
88,320 38,421 127,499 47,243 244,468
751,961 454,647 262,895 389,193 79,303
331,477 182,008 127,935 201,381 40,475
87,634 52,181 29,037 43,635 12,773
-- -- -- -- 17,812
-- -- -- -- --
20,302 12,493 7,038 10,608 2,098
6,322 6,322 6,322 6,322 6,312
10,528 7,201 8,693 7,235 6,661
--------------- --------------- --------------- ---------------- ------------
3,142,466 1,884,780 1,478,305 1,831,218 833,187
--------------- --------------- --------------- ---------------- ------------
(585,144) (338,946) (215,359) (273,559) (259,678)
-- -- -- -- --
--------------- --------------- --------------- ---------------- ------------
(585,144) (338,946) (215,359) (273,559) (259,678)
--------------- --------------- --------------- ---------------- ------------
2,557,322 1,545,834 1,262,946 1,557,659 573,509
--------------- --------------- --------------- ---------------- ------------
3,921,073 3,995,399 708,880 736,249 232,005
--------------- --------------- --------------- ---------------- ------------
7,671,440 5,433,915 (1,227,907) (19,257,182) (10,177,163)
-- -- -- -- (95,204)
-- -- -- -- --
-- (7,065) (103,487) -- (104,276)
-- -- -- -- --
--------------- --------------- --------------- ---------------- ------------
7,671,440 5,426,850 (1,331,394) (19,257,182) (10,376,643)
--------------- --------------- --------------- ---------------- ------------
24,262,285 4,862,525 12,679,282 56,703 385,027
-- -- -- -- 78,696
-- 451 7,897 -- (104,889)
-- -- -- -- --
-- -- -- -- --
--------------- --------------- --------------- ---------------- ------------
24,262,285 4,862,976 12,687,179 56,703 358,834
--------------- --------------- --------------- ---------------- ------------
31,933,725 10,289,826 11,355,785 (19,200,479) (10,017,809)
--------------- --------------- --------------- ---------------- ------------
$ 35,854,798 $ 14,285,225 $ 12,064,665 $ (18,464,230) $ (9,785,804)
=============== =============== =============== ================ ==============
$ -- $ 6,370 $ 201,638 $ -- $ 29,792
=============== =============== =============== ================ ==============
$ -- $ -- $ -- $ -- $ --
=============== =============== =============== ================ ==============
</TABLE>
6
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
BT BT BT
EQUITY 500 INTERNATIONAL SMALL COMPANY
INDEX EQUITY INDEX INDEX
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (includes $1,470 and $1,504
from affiliated companies for the
Morgan Stanley Emerging Markets
Equity and BT International Equity
Index Portfolio, respectively) ............ $ 1,165,608 $ 388,553 $ 247,565
Interest ................................... 313,848 152,744 67,384
Securities lending--Net .................... 4,711 5,397 10,169
----------- ----------- ----------
Total income .............................. 1,484,167 546,694 325,118
----------- ----------- ----------
Expenses (Notes 1, 2, 3, 4 and 5):
Investment management fee .................. 210,001 98,039 45,728
Administrative fees ........................ 91,209 89,083 97,220
Custody fees ............................... 75,302 94,016 101,731
Distribution fees--Class IB ................ 210,001 69,922 45,728
Printing and mailing expenses .............. 69,606 34,305 25,391
Professional fees .......................... 25,745 9,568 6,456
Interest expense on swap agreements ........ -- -- --
Interest expense on loans .................. -- 12,929 --
Trustees' fees (Note 7) .................... 4,538 1,971 1,310
Amortization of deferred organizational
expense ................................... 6,267 6,267 6,267
Miscellaneous .............................. 1,501 915 530
----------- ----------- ----------
Gross expenses ............................ 694,170 417,015 330,361
----------- ----------- ----------
Waivers and reimbursements: (Note 6)
Waiver of investment management fee ........ (210,001) (98,039) (45,728)
Reimbursement from investment
manager ................................... (22,206) (82,064) (174,886)
----------- ----------- ----------
Total waivers and reimbursements .......... (232,207) (180,103) (220,614)
----------- ----------- ----------
Net expenses ............................... 461,963 236,912 109,747
----------- ----------- ----------
NET INVESTMENT INCOME ........................ 1,022,204 309,782 215,371
----------- ----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) (NOTE 1):
Realized Gain (Loss) on:
Securities ................................. 182,410 29,249 123,720
Swap agreements ............................ -- -- --
Options written ............................ -- -- --
Foreign currency transactions .............. -- 266,676 --
Futures contracts .......................... 464,603 (312,103) 277,358
----------- ----------- ----------
Realized gain (loss)--net ................... 647,013 (16,178) 401,078
----------- ----------- ----------
Change in Unrealized Appreciation
(Depreciation) on:
Securities ................................. 21,094,374 4,443,701 (744,966)
Swap agreements ............................ -- -- --
Foreign currency transactions .............. -- 47,682 --
Forward commitments ........................ -- -- --
Futures contracts .......................... 47,461 139,306 4,440
----------- ----------- ----------
Unrealized appreciation
(depreciation)--net ........................ 21,141,835 4,630,689 (740,526)
----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ..... 21,788,848 4,614,511 (339,448)
----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS .................................. $22,811,052 $ 4,924,293 $ (124,077)
=========== =========== ==========
*Foreign taxes withheld on dividends ......... $ 11 $ 59,292 $ --
----------- ----------- -------------
*Foreign taxes withheld on interest .......... $ -- $ -- $ --
=========== ============== =============
<PAGE>
<CAPTION>
LAZARD LAZARD
JPM LARGE CAP SMALL CAP
CORE BOND VALUE VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends (includes $1,470 and $1,504
from affiliated companies for the
Morgan Stanley Emerging Markets
Equity and BT International Equity
Index Portfolio, respectively) ............ $ 24,980 $ 458,068 $ 254,021
Interest ................................... 2,176,519 148,397 160,068
Securities lending--Net .................... 2,202 3,516 4,369
----------- ----------- ------------
Total income .............................. 2,203,701 609,981 418,458
----------- ----------- ------------
Expenses (Notes 1, 2, 3, 4 and 5):
Investment management fee .................. 172,507 160,570 194,797
Administrative fees ........................ 52,546 47,035 45,857
Custody fees ............................... 16,557 20,950 25,294
Distribution fees--Class IB ................ 95,837 72,986 60,874
Printing and mailing expenses .............. 34,716 28,418 27,342
Professional fees .......................... 11,907 9,298 8,130
Interest expense on swap agreements ........ -- -- --
Interest expense on loans .................. -- -- --
Trustees' fees (Note 7) .................... 1,903 1,527 1,471
Amortization of deferred organizational
expense ................................... 6,267 6,267 6,267
Miscellaneous .............................. 680 2,304 5,460
----------- ----------- ------------
Gross expenses ............................ 392,920 349,355 375,492
----------- ----------- ------------
Waivers and reimbursements: (Note 6)
Waiver of investment management fee ........ (86,241) (87,559) (83,297)
Reimbursement from investment
manager ................................... -- -- --
----------- ----------- ------------
Total waivers and reimbursements .......... (86,241) (87,559) (83,297)
----------- ----------- ------------
Net expenses ............................... 306,679 261,796 292,195
----------- ----------- ------------
NET INVESTMENT INCOME ........................ 1,897,022 348,185 126,263
----------- ----------- ------------
REALIZED AND UNREALIZED GAIN
(LOSS) (NOTE 1):
Realized Gain (Loss) on:
Securities ................................. 884,507 (537,158) (675,981)
Swap agreements ............................ -- -- --
Options written ............................ -- -- --
Foreign currency transactions .............. (195,058)
Futures contracts .......................... 252,153 -- --
----------- ----------- ------------
Realized gain (loss)--net ................... 941,602 (537,158) (675,981)
----------- ----------- ------------
Change in Unrealized Appreciation
(Depreciation) on:
Securities ................................. 238,377 6,923,208 (1,239,410)
Swap agreements ............................ -- -- --
Foreign currency transactions .............. 49,359 -- --
Forward commitments ........................ 21,355 -- --
Futures contracts .......................... (21,338) -- --
----------- ----------- -------------
Unrealized appreciation
(depreciation)--net ........................ 287,753 6,923,208 (1,239,410)
----------- ----------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)--NET ..... 1,229,355 6,386,050 (1,915,391)
----------- ----------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS .................................. $ 3,126,377 $ 6,734,235 $ (1,789,128)
=========== =========== =================
*Foreign taxes withheld on dividends ........ $ -- $ -- $ --
-------------- -------------- -----------------
*Foreign taxes withheld on interest .......... $ -- $ -- $ --
============== ============== =================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MERRILL LYNCH BASIC VALUE
EQUITY PORTFOLIO
---------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 1,620,403 $ 255,492
Realized gain (loss)--net ................................. 5,652,703 209,710
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... (239,779) (47,430)
------------- ------------
Net increase (decrease) in net assets from operations ..... 7,033,327 417,772
------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
------------- ------------
Total Class IA dividends and distributions ................ -- --
------------- ------------
Class IB:
Dividends from net investment income ..................... (1,636,788) (247,223)
Dividends in excess of net investment income ............. (8,838) --
Distributions from realized gains ........................ (5,629,501) (209,710)
Distributions in excess of realized gains ................ (75,031) (23,202)
Return of capital distributions .......................... -- --
------------- ------------
Total Class IB dividends and distributions ................ (7,350,158) (480,135)
------------- ------------
Decrease in net assets from dividends and
distributions ............................................ (7,350,158) (480,135)
------------- ------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- ------------
Total Class IA transactions ............................... -- --
------------- ------------
Class IB:
Shares sold .............................................. 161,279,159 53,828,437
Shares issued from reinvestment of dividends and
distributions ........................................... 7,350,158 480,135
Shares redeemed .......................................... (43,703,327) (4,751,165)
------------- ------------
Total Class IB transactions ............................... 124,925,990 49,557,407
------------- ------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 124,925,990 49,557,407
------------- ------------
INCREASE IN NET ASSETS ..................................... 124,609,159 49,495,044
NET ASSETS, BEGINNING OF PERIOD ............................ 49,495,044 --
------------- ------------
NET ASSETS, END OF PERIOD .................................. $ 174,104,203 $ 49,495,044
============= ============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ (175) $ 12,476
============= ============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- ------------
Total Class IA transactions ............................... -- --
============= ============
Class IB:
Shares sold .............................................. 12,674,506 4,633,508
Shares issued from reinvestment of dividends and
distributions ........................................... 600,506 42,265
Shares redeemed .......................................... (3,467,476) (402,168)
------------- ------------
Total Class IB transactions ............................... 9,807,536 4,273,605
============= ============
<PAGE>
<CAPTION>
MERRILL LYNCH WORLD STRATEGY
PORTFOLIO
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 417,475 $ 133,437
Realized gain (loss)--net ................................. (1,565,854) (294,596)
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 2,563,344 (86,541)
-------------- ------------
Net increase (decrease) in net assets from operations ..... 1,414,965 (247,700)
-------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
-------------- ------------
Total Class IA dividends and distributions ................ -- --
-------------- ------------
Class IB:
Dividends from net investment income ..................... (106,747) (75,981)
Dividends in excess of net investment income ............. (117,119) (6,214)
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- (187,184)
Return of capital distributions .......................... -- --
-------------- ------------
Total Class IB dividends and distributions ................ (223,866) (269,379)
-------------- ------------
Decrease in net assets from dividends and
distributions ............................................ (223,866) (269,379)
-------------- ------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
-------------- ------------
Total Class IA transactions ............................... -- --
-------------- ------------
Class IB:
Shares sold .............................................. 21,435,271 24,010,398
Shares issued from reinvestment of dividends and
distributions ........................................... 223,866 269,379
Shares redeemed .......................................... (10,429,724) (5,552,248)
-------------- ------------
Total Class IB transactions ............................... 11,229,413 18,727,529
-------------- ------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 11,229,413 18,727,529
-------------- ------------
INCREASE IN NET ASSETS ..................................... 12,420,512 18,210,450
NET ASSETS, BEGINNING OF PERIOD ............................ 18,210,450 --
-------------- ------------
NET ASSETS, END OF PERIOD .................................. $ 30,630,962 $ 18,210,450
============== ============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ (117,119) $ (6,214)
============== ============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
-------------- ------------
Total Class IA transactions ............................... -- --
============== ============
Class IB:
Shares sold .............................................. 1,987,470 2,241,153
Shares issued from reinvestment of dividends and
distributions ........................................... 20,942 26,332
Shares redeemed .......................................... (972,049) (501,568)
-------------- ------------
Total Class IB transactions ............................... 1,036,363 1,765,917
============== ============
</TABLE>
- ---------
* Commencement of Operations
** The Portfolios that received initial capital on December 31, 1997
commenced operations on January 1, 1998.
*** The Portfolios that received initial capital on December 31, 1998 will
commence operations on January 1, 1999.
See Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
MFS EMERGING GROWTH COMPANIES
PORTFOLIO MFS RESEARCH PORTFOLIO EQ/PUTNAM BALANCED PORTFOLIO
- ----------------------------------------- ----------------------------------------- ----------------------------------------
MAY 1, 1997* MAY 1, 1997* MAY 1, 1997*
YEAR ENDED TO YEAR ENDED TO YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1998 DECEMBER 31, 1997
- ------------------- ------------------- ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C> <C>
$ (749,002) $ 189,683 $ 1,050,278 $ 219,276 $ 1,413,676 $ 296,083
(12,444,070) 1,472,642 (6,417,869) 104,995 1,270,027 281,700
96,627,486 239,880 57,047,827 1,575,381 2,688,773 841,182
-------------- ------------- ------------- ------------ ------------- ------------
83,434,414 1,902,205 51,680,236 1,899,652 5,372,476 1,418,965
-------------- ------------- ------------- ------------ ------------- ------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------------- ------------- ------------- ------------ ------------- ------------
-- -- -- -- -- --
-------------- ------------- ------------- ------------ ------------- ------------
(7,792) (191,439) (1,012,965) (225,007) (93,972) (279,057)
(8) (513) -- (19,539) (1,254,242) (13,681)
-- (1,475,542) -- (107,634) (827,467) (196,041)
-- (865,006) -- (863,224) -- --
-- -- -- -- -- --
--------------- ------------- ------------- ------------ ------------- ------------
(7,800) (2,532,500) (1,012,965) (1,215,404) (2,175,681) (488,779)
--------------- ------------- ------------- ------------ ------------- ------------
(7,800) (2,532,500) (1,012,965) (1,215,404) (2,175,681) (488,779)
--------------- ------------- ------------- ------------ ------------- ------------
6,000,146 -- -- -- -- --
-- -- -- -- -- --
(482,295) -- -- -- -- --
--------------- ------------- ------------- ------------ ------------- ------------
5,517,851 -- -- -- -- --
--------------- ------------- ------------- ------------ ------------- ------------
611,028,621 146,747,168 296,232,678 120,065,201 70,178,473 32,089,702
7,800 2,532,500 1,012,965 1,215,404 2,175,681 488,779
(334,513,068) (46,832,130) (57,048,378) (5,210,389) (25,427,352) (7,655,079)
--------------- ------------- ------------- ------------ ------------- ------------
276,523,353 102,447,538 240,197,265 116,070,216 46,926,802 24,923,402
--------------- ------------- ------------- ------------ ------------- ------------
282,041,204 102,447,538 240,197,265 116,070,216 46,926,802 24,923,402
--------------- ------------- ------------- ------------ ------------- ------------
365,467,818 101,817,243 290,864,536 116,754,464 50,123,597 25,853,588
101,817,243 -- 116,754,464 -- 25,853,588 --
--------------- ------------- ------------- ------------ ------------- ------------
$ 467,285,061 $ 101,817,243 $ 407,619,000 $116,754,464 $ 75,977,185 $ 25,853,588
=============== ============= ============= ============ ============= ============
$ (314) $ (513) $ 8,161 $ (19,539) $ 4,600 $ (13,681)
=============== ============= ============= ============ ============= ============
404,027 -- -- -- -- --
-- -- -- -- -- --
(31,231) -- -- -- -- --
--------------- ------------- ------------- ------------ ------------- ------------
372,796 -- -- -- -- --
=============== ============= ============= ============ ============= ============
44,295,343 12,281,631 22,888,136 10,512,264 5,930,052 2,939,085
568 219,454 73,904 108,421 181,291 43,995
(24,074,548) (3,960,324) (4,442,595) (449,754) (2,169,078) (677,681)
--------------- ------------- ------------- ------------ ------------- ------------
20,221,363 8,540,761 18,519,445 10,170,931 3,942,265 2,305,399
=============== ============= ============= ============ ============= ============
</TABLE>
9
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQ/PUTNAM GROWTH & INCOME
VALUE PORTFOLIO
---------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 3,921,073 $ 691,408
Realized gain (loss)--net ................................. 7,671,440 157,072
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 24,262,285 2,814,913
------------- ------------
Net increase (decrease) in net assets from operations ..... 35,854,798 3,663,393
------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
------------- ------------
Total Class IA dividends and distributions ................ -- --
------------- ------------
Class IB:
Dividends from net investment income ..................... (3,908,330) (695,650)
Dividends in excess of net investment income ............. -- (1,258)
Distributions from realized gains ........................ (3,529,756) (157,079)
Distributions in excess of realized gains ................ -- (413,163)
Return of capital distributions .......................... -- --
------------- ------------
Total Class IB dividends and distributions ................ (7,438,086) (1,267,150)
------------- ------------
Decrease in net assets from dividends and
distributions ............................................ (7,438,086) (1,267,150)
------------- ------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- ------------
Total Class IA transactions ............................... -- --
------------- ------------
Class IB:
Shares sold .............................................. 302,749,372 150,166,887
Shares issued from reinvestment of dividends and
distributions ........................................... 7,438,086 1,267,150
Shares redeemed .......................................... (28,119,631) (3,570,558)
------------- ------------
Total Class IB transactions ............................... 282,067,827 147,863,479
------------- ------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 282,067,827 147,863,479
------------- ------------
INCREASE IN NET ASSETS ..................................... 310,484,539 150,259,722
NET ASSETS, BEGINNING OF PERIOD ............................ 150,259,722 --
------------- ------------
NET ASSETS, END OF PERIOD .................................. $ 460,744,261 $150,259,722
============= ============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ 26,121 $ (42)
============= ============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- ------------
Total Class IA transactions ............................... -- --
============= ============
Class IB:
Shares sold .............................................. 24,763,118 13,247,726
Shares issued from reinvestment of dividends and
distributions ........................................... 591,764 111,940
Shares redeemed .......................................... (2,321,054) (313,953)
------------- ------------
Total Class IB transactions ............................... 23,033,828 13,045,713
============= ============
<PAGE>
<CAPTION>
EQ/PUTNAM INTERNATIONAL EQUITY
PORTFOLIO
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 613,761 $ 136,844
Realized gain (loss)--net ................................. (2,795,321) 91,742
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 16,595,849 (222,070)
------------- -----------
Net increase (decrease) in net assets from operations ..... 14,414,289 6,516
------------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
------------- -----------
Total Class IA dividends and distributions ................ -- --
------------- -----------
Class IB:
Dividends from net investment income ..................... (42,950) (99,488)
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- (70,340)
Distributions in excess of realized gains ................ -- (179,261)
Return of capital distributions .......................... -- --
------------- -----------
Total Class IB dividends and distributions ................ (42,950) (349,089)
------------- -----------
Decrease in net assets from dividends and
distributions ............................................ (42,950) (349,089)
------------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- -----------
Total Class IA transactions ............................... -- --
------------- -----------
Class IB:
Shares sold .............................................. 86,265,870 58,043,736
Shares issued from reinvestment of dividends and
distributions ........................................... 42,950 349,089
Shares redeemed .......................................... (14,637,575) (372,106)
------------- -----------
Total Class IB transactions ............................... 71,671,245 58,020,719
------------- -----------
Net increase (decrease) in net assets derived from
share transactions ....................................... 71,671,245 58,020,719
------------- -----------
INCREASE IN NET ASSETS ..................................... 86,042,584 57,678,146
NET ASSETS, BEGINNING OF PERIOD ............................ 57,678,146 --
------------- -----------
NET ASSETS, END OF PERIOD .................................. $ 143,720,730 $57,678,146
============= ===========
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ 699,943 $ 62,965
============= ===========
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- -----------
Total Class IA transactions ............................... -- --
============= ===========
Class IB:
Shares sold .............................................. 6,968,356 5,297,238
Shares issued from reinvestment of dividends and
distributions ........................................... 3,382 32,263
Shares redeemed .......................................... (1,217,991) (33,482)
------------- -----------
Total Class IB transactions ............................... 5,753,747 5,296,019
============= ===========
</TABLE>
- ---------
* Commencement of Operations
** The Portfolios that received initial capital on December 31, 1997
commenced operations on January 1, 1998.
*** The Portfolios that received initial capital on December 31, 1998 will
commence operations on January 1, 1999.
See Notes to Financial Statements.
10
<PAGE>
<TABLE>
<CAPTION>
EQ/PUTNAM INVESTORS GROWTH T. ROWE PRICE EQUITY INCOME T. ROWE PRICE INTERNATIONAL
PORTFOLIO PORTFOLIO STOCK PORTFOLIO
- ----------------------------------------- ----------------------------------------- ----------------------------------------
MAY 1, 1997* MAY 1, 1997* MAY 1, 1997*
YEAR ENDED TO YEAR ENDED TO YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1998 DECEMBER 31, 1997
- ------------------- ------------------- ------------------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C> <C>
$ 125,623 $ 71,785 $ 3,995,399 $ 755,994 $ 708,880 $ 128,093
(4,124,377) 115,368 5,426,850 350,530 (1,331,394) (368,231)
34,949,382 2,538,392 4,862,976 5,446,015 12,687,179 (3,616,820)
------------ ----------- ------------- ------------- -------------- -------------
30,950,628 2,725,545 14,285,225 6,552,539 12,064,665 (3,856,958)
------------ ----------- ------------- ------------- -------------- -------------
-- -- (35,838) -- -- --
-- -- -- -- -- --
-- -- (40,618) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------------ ----------- ------------- ------------- -------------- -------------
-- -- (76,456) -- -- --
------------ ----------- ------------- ------------- -------------- -------------
(111,393) (75,580) (3,933,650) (742,913) (833,092) --
-- -- -- -- (302,422) (9,785)
-- (115,368) (5,062,958) (274,692) -- --
-- (230,644) -- -- (1,173) --
-- -- -- -- -- --
------------ ----------- ------------- ------------- -------------- -------------
(111,393) (421,592) (8,996,608) (1,017,605) (1,136,687) (9,785)
------------ ----------- ------------- ------------- -------------- -------------
(111,393) (421,592) (9,073,064) (1,017,605) (1,136,687) (9,785)
------------ ----------- ------------- ------------- -------------- -------------
-- -- 2,524,430 -- -- --
-- -- 76,456 -- -- --
-- -- (142,092) -- -- --
------------ ----------- ------------- ------------- -------------- -------------
-- -- 2,458,794 -- -- --
------------ ----------- ------------- ------------- -------------- -------------
114,300,823 37,267,750 170,865,561 104,824,753 178,237,748 100,986,940
111,393 421,592 8,996,608 1,017,605 1,136,687 9,785
(9,931,082) (298,689) (43,064,416) (11,529,982) (130,221,045) (22,558,013)
------------ ----------- ------------- ------------- -------------- -------------
104,481,134 37,390,653 136,797,753 94,312,376 49,153,390 78,438,712
------------ ----------- ------------- ------------- -------------- -------------
104,481,134 37,390,653 139,256,547 94,312,376 49,153,390 78,438,712
------------ ----------- ------------- ------------- -------------- -------------
135,320,369 39,694,606 144,468,708 99,847,310 60,081,368 74,571,969
39,694,606 -- 99,947,310 100,000 74,571,969 --
------------ ----------- ------------- ------------- -------------- -------------
$175,014,975 $39,694,606 $ 244,416,018 $ 99,947,310 $ 134,653,337 $ 74,571,969
============ =========== ============= ============= ============== =============
$ 25,684 $ 412 $ 34,184 $ 2,001 $ (158,252) $ (20,377)
============ =========== ============= ============= ============== =============
-- -- 195,361 -- -- --
-- -- 6,161 -- -- --
-- -- (10,947) -- -- --
------------ ----------- ------------- ------------- -------------- -------------
-- -- 190,575 -- -- --
============ =========== ============= ============= ============== =============
7,900,821 3,210,087 13,571,713 9,163,385 16,778,911 9,802,776
6,926 35,192 723,375 85,226 104,054 997
(704,721) (25,201) (3,466,621) (985,808) (12,323,215) (2,232,461)
------------ ----------- ------------- ------------- -------------- -------------
7,203,026 3,220,078 10,828,467 8,262,803 4,559,750 7,571,312
============ =========== ============= ============= ============== =============
</TABLE>
11
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WARBURG PINCUS SMALL COMPANY
VALUE PORTFOLIO
---------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 736,249 $ 99,305
Realized gain (loss)--net ................................. (19,257,182) (937,026)
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 56,703 439,483
------------- -------------
Net increase (decrease) in net assets from operations ..... (18,464,230) (398,238)
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... (2,910) --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... (593) --
------------- -------------
Total Class IA dividends and distributions ................ (3,503) --
------------- -------------
Class IB:
Dividends from net investment income ..................... (643,796) (103,540)
Dividends in excess of net investment income ............. -- (204)
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- (528,932)
Return of capital distributions .......................... (131,277) --
------------- -------------
Total Class IB dividends and distributions ................ (775,073) (632,676)
------------- -------------
Decrease in net assets from dividends and
distributions ............................................ (778,576) (632,676)
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. 799,188 --
Shares issued from reinvestment of dividends and
distributions ........................................... 3,503 --
Shares redeemed .......................................... (72,570) --
------------- -------------
Total Class IA transactions ............................... 730,121 --
------------- -------------
Class IB:
Shares sold .............................................. 118,015,752 170,997,522
Shares issued from reinvestment of dividends and
distributions ........................................... 775,073 632,676
Shares redeemed .......................................... (53,664,561) (49,719,610)
------------- -------------
Total Class IB transactions ............................... 65,126,264 121,910,588
------------- -------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 65,856,385 121,910,588
------------- -------------
INCREASE IN NET ASSETS ..................................... 46,613,579 120,879,674
NET ASSETS, BEGINNING OF PERIOD ............................ 120,879,674 --
------------- -------------
NET ASSETS, END OF PERIOD .................................. $ 167,493,253 $ 120,879,674
============= =============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ (291) $ (28)
============= =============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. 77,260 --
Shares issued from reinvestment of dividends and
distributions ........................................... 345 --
Shares redeemed .......................................... (7,045) --
------------- -------------
Total Class IA transactions ............................... 70,560 --
============= =============
Class IB:
Shares sold .............................................. 10,072,044 14,177,457
Shares issued from reinvestment of dividends and
distributions ........................................... 76,073 54,682
Shares redeemed .......................................... (4,636,677) (4,027,352)
------------- -------------
Total Class IB transactions ............................... 5,511,440 10,204,787
============= =============
<PAGE>
<CAPTION>
MORGAN STANLEY EMERGING MARKETS
EQUITY PORTFOLIO
--------------------------------------
AUGUST 20, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 232,005 $ 112,895
Realized gain (loss)--net ................................. (10,376,643) (403,302)
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 358,834 (2,983,874)
-------------- --------------
Net increase (decrease) in net assets from operations ..... (9,785,804) (3,274,281)
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
-------------- --------------
Total Class IA dividends and distributions ................ -- --
-------------- --------------
Class IB:
Dividends from net investment income ..................... (153,424) (59,226)
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
-------------- --------------
Total Class IB dividends and distributions ................ (153,424) (59,226)
-------------- --------------
Decrease in net assets from dividends and
distributions ............................................ (153,424) (59,226)
-------------- --------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
-------------- --------------
Total Class IA transactions ............................... -- --
-------------- --------------
Class IB:
Shares sold .............................................. 95,364,409 35,354,533
Shares issued from reinvestment of dividends and
distributions ........................................... 153,424 59,226
Shares redeemed .......................................... (65,652,014) (10,647,621)
-------------- --------------
Total Class IB transactions ............................... 29,865,819 24,766,138
-------------- --------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 29,865,819 24,766,138
-------------- --------------
INCREASE IN NET ASSETS ..................................... 19,926,591 21,432,631
NET ASSETS, BEGINNING OF PERIOD ............................ 21,432,631 --
-------------- --------------
NET ASSETS, END OF PERIOD .................................. $ 41,359,222 $ 21,432,631
============== ==============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ (35,802) $ 33,290
============== ==============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
-------------- --------------
Total Class IA transactions ............................... -- --
============== ==============
Class IB:
Shares sold .............................................. 14,735,898 3,928,086
Shares issued from reinvestment of dividends and
distributions ........................................... 26,892 7,554
Shares redeemed .......................................... (10,307,350) (1,241,830)
-------------- --------------
Total Class IB transactions ............................... 4,455,440 2,693,810
============== ==============
</TABLE>
- ---------
* Commencement of Operations
** The Portfolios that received initial capital on December 31, 1997
commenced operations on January 1, 1998.
*** The Portfolios that recieved initial capital on December 31, 1998 will
commence operations on January 1, 1999.
See Notes to Financial Statements.
12
<PAGE>
<TABLE>
<CAPTION>
BT EQUITY 500 INDEX PORTFOLIO BT INTERNATIONAL EQUITY INDEX PORTFOLIO BT SMALL COMPANY INDEX PORTFOLIO
- ----------------------------------------- ----------------------------------------- ----------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997** DECEMBER 31, 1998 DECEMBER 31, 1997** DECEMBER 31, 1998 DECEMBER 31, 1997**
- ------------------- --------------------- ------------------- --------------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C>
$ 1,022,204 $ -- $ 309,782 $ -- $ 215,371 $ --
647,013 -- (16,178) -- 401,078 --
21,141,835 -- 4,630,689 -- (740,526) --
------------- ------------- ------------- ------------- ------------- -------------
22,811,052 -- 4,924,293 -- (124,077) --
------------- ------------- ------------- ------------- ------------- -------------
-- -- (8,547) -- -- --
-- -- (260) -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- (8,807) -- -- --
------------- ------------- ------------- ------------- ------------- -------------
(1,034,895) -- (584,566) -- (223,243) --
-- -- (17,770) -- -- --
-- -- -- -- (401,078) --
-- -- -- -- (23,362) --
-- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
(1,034,895) -- (602,336) -- (647,683) --
------------- ------------- ------------- ------------- ------------- -------------
(1,034,895) -- (611,143) -- (647,683) --
------------- ------------- ------------- ------------- ------------- -------------
-- -- 1,304,807 -- -- --
-- -- 8,807 -- -- --
-- -- (598,860) -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- 714,754 -- -- --
------------- ------------- ------------- ------------- ------------- -------------
223,661,715 1,000 53,227,128 1,000 34,192,251 1,000
1,034,895 -- 602,336 -- 647,683 --
(22,226,914) -- (10,048,028) -- (1,460,486) --
------------- ------------- ------------- ------------- ------------- -------------
202,469,696 1,000 43,781,436 1,000 33,379,448 1,000
------------- ------------- ------------- ------------- ------------- -------------
202,469,696 1,000 44,496,190 1,000 33,379,448 1,000
------------- ------------- ------------- ------------- ------------- -------------
224,245,853 1,000 48,809,340 1,000 32,607,688 1,000
1,000 -- 1,000 -- 1,000 --
------------- ------------- ------------- ------------- ------------- -------------
$ 224,246,853 $ 1,000 $ 48,810,340 $ 1,000 $ 32,608,688 $ 1,000
============= ============= ============= ============= ============= =============
$ 3,162 $ -- $ (18,030) $ -- $ 5,196 $ --
============= ============= ============= ============= ============= =============
-- -- 112,153 -- -- --
-- -- 760 -- -- --
-- -- (50,836) -- -- --
------------- ------------- ------------- ------------- ------------- -------------
-- -- 62,077 -- -- --
============= ============= ============= ============= ============= =============
19,947,642 100 4,910,743 100 3,497,021 100
84,967 -- 51,925 -- 71,331 --
(2,017,457) -- (905,704) -- (156,037) --
------------- ------------- ------------- ------------- ------------- -------------
18,015,152 100 4,056,964 100 3,412,315 100
============= ============= ============= ============= ============= =============
</TABLE>
13
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
JPM CORE BOND PORTFOLIO
-----------------------------------------
YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997**
------------------- ---------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 1,897,022 $ --
Realized gain (loss)--net ................................. 941,602 --
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 287,753 --
------------- --------------
Net increase (decrease) in net assets from operations ..... 3,126,377 --
------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
------------- --------------
Total Class IA dividends and distributions ................ -- --
------------- --------------
Class IB:
Dividends from net investment income ..................... (1,885,859) --
Dividends in excess of net investment income ............. (56,429) --
Distributions from realized gains ........................ (963,793) --
Distributions in excess of realized gains ................ (85,138) --
Return of capital distributions .......................... -- --
------------- --------------
Total Class IB dividends and distributions ................ (2,991,219) --
------------- --------------
Decrease in net assets from dividends and
distributions ............................................ (2,991,219) --
------------- --------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- --------------
Total Class IA transactions ............................... -- --
------------- --------------
Class IB:
Shares sold .............................................. 104,618,746 1,000
Shares issued from reinvestment of dividends and
distributions ........................................... 2,991,219 --
Shares redeemed .......................................... (4,419,883) --
------------- --------------
Total Class IB transactions ............................... 103,190,082 1,000
------------- --------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 103,190,082 1,000
------------- --------------
INCREASE IN NET ASSETS ..................................... 103,325,240 1,000
NET ASSETS, BEGINNING OF PERIOD ............................ 1,000 --
------------- --------------
NET ASSETS, END OF PERIOD .................................. $ 103,326,240 $ 1,000
============= ==============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ (49,365) $ --
============= ==============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
------------- --------------
Total Class IA transactions ............................... -- --
============= ==============
Class IB:
Shares sold .............................................. 9,907,643 100
Shares issued from reinvestment of dividends and
distributions ........................................... 284,067 --
Shares redeemed .......................................... (416,891) --
------------- --------------
Total Class IB transactions ............................... 9,774,819 100
============= ==============
<PAGE>
<CAPTION>
LAZARD LARGE CAP VALUE PORTFOLIO
----------------------------------------
YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997**
------------------- --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ..................................... $ 348,185 $ --
Realized gain (loss)--net ................................. (537,158) --
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated
assets and liabilities ................................... 6,923,208 --
------------- --------------
Net increase (decrease) in net assets from operations ..... 6,734,235 --
------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IA:
Dividends from net investment income ..................... -- --
Dividends in excess of net investment income ............. -- --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
------------- --------------
Total Class IA dividends and distributions ................ -- --
------------- --------------
Class IB:
Dividends from net investment income ..................... (355,221) --
Dividends in excess of net investment income ............. (8) --
Distributions from realized gains ........................ -- --
Distributions in excess of realized gains ................ -- --
Return of capital distributions .......................... -- --
--------------- --------------
Total Class IB dividends and distributions ................ (355,229) --
--------------- --------------
Decrease in net assets from dividends and
distributions ............................................ (355,229) --
--------------- --------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
--------------- --------------
Total Class IA transactions ............................... -- --
--------------- --------------
Class IB:
Shares sold .............................................. 70,032,073 1,000
Shares issued from reinvestment of dividends and
distributions ........................................... 355,229 --
Shares redeemed .......................................... (2,179,659) --
--------------- --------------
Total Class IB transactions ............................... 68,207,643 1,000
--------------- --------------
Net increase (decrease) in net assets derived from
share transactions ....................................... 68,207,643 1,000
--------------- --------------
INCREASE IN NET ASSETS ..................................... 74,586,649 1,000
NET ASSETS, BEGINNING OF PERIOD ............................ 1,000 --
--------------- --------------
NET ASSETS, END OF PERIOD .................................. $ 74,587,649 $ 1,000
=============== ==============
Net Assets include accumulated undistributed
(overdistributed) net investment income of ............... $ 2,707 $ --
=============== ==============
SHARE TRANSACTIONS:
Class IA:
Shares sold .............................................. -- --
Shares issued from reinvestment of dividends and
distributions ........................................... -- --
Shares redeemed .......................................... -- --
--------------- --------------
Total Class IA transactions ............................... -- --
=============== ==============
Class IB:
Shares sold .............................................. 6,428,010 100
Shares issued from reinvestment of dividends and
distributions ........................................... 30,181 --
Shares redeemed .......................................... (209,926) --
--------------- --------------
Total Class IB transactions ............................... 6,248,265 100
=============== ==============
</TABLE>
- ---------
* Commencement of Operations
** The Portfolios that received initial capital on December 31, 1997
commenced operations on January 1, 1998.
*** The Portfolios that received initial capital on December 31, 1998 will
commence operations on January 1, 1999.
See Notes to Financial Statements.
14
<PAGE>
<TABLE>
<CAPTION>
MFS
EQ/EVERGREEN GROWTH WITH
FOUNDATION EQ/EVERGREEN INCOME
LAZARD SMALL CAP VALUE PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------- ---------------------- ---------------------- ---------------------
YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997** DECEMBER 31, 1998*** DECEMBER 31, 1998*** DECEMBER 31, 1998***
- ------------------- --------------------- ---------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
$ 126,263 $ -- $ -- $ -- $ --
(675,981) -- -- -- --
(1,239,410) -- -- -- --
------------- ------------- ------------- ------------- -------------
(1,789,128) -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
(135,415) -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
(135,415) -- -- -- --
------------- ------------- ------------- ------------- -------------
(135,415) -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
55,276,760 1,000 1,000 1,000 1,000
135,415 -- -- -- --
(2,442,967) -- -- -- --
------------- ------------- ------------- ------------- -------------
52,969,208 1,000 1,000 1,000 1,000
------------- ------------- ------------- ------------- -------------
52,969,208 1,000 1,000 1,000 1,000
------------- ------------- ------------- ------------- -------------
51,044,665 1,000 1,000 1,000 1,000
1,000 -- -- -- --
------------- ------------- ------------- ------------- -------------
$ 51,045,665 $ 1,000 $ 1,000 $ 1,000 $ 1,000
============= ============= ============= ============= =============
$ -- $ -- $ -- $ -- $ --
============= ============= ============= ============= =============
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
------------- ------------- ------------- ------------- -------------
-- -- -- -- --
============= ============= ============= ============= =============
5,784,545 100 100 100 100
15,511 -- -- -- --
(293,316) -- -- -- --
------------- ------------- ------------- ------------- -------------
5,506,740 100 100 100 100
============= ============= ============= ============= =============
</TABLE>
15
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (11.2%)
CHEMICALS (3.7%)
E.I. Du Pont de Nemours & Co. 45,000 $ 2,387,813
Hercules, Inc. ......................................................... 150,000 4,106,250
-------------
6,494,063
-------------
METALS & MINING (2.1%)
ASARCO, Inc. ........................................................... 100,000 1,506,250
Potash Corp. of Saskatchewan,
Inc. ................................................................. 35,000 2,235,625
-------------
3,741,875
-------------
PAPER (4.7%)
Champion International Corp. ........................................... 80,000 3,240,000
Kimberly-Clark Corp. ................................................... 90,000 4,905,000
-------------
8,145,000
-------------
STEEL (0.7%)
WHX Corp.* ............................................................. 120,000 1,207,500
-------------
TOTAL BASIC MATERIALS ................................................ 19,588,438
-------------
CAPITAL GOODS (6.9%)
AEROSPACE (2.4%)
Boeing Co. ............................................................. 70,000 2,283,750
Northrop Grumman Corp. ................................................. 25,000 1,828,125
-------------
4,111,875
-------------
BUILDING & CONSTRUCTION (1.3%)
Foster Wheeler Corp. ................................................... 170,000 2,241,875
-------------
ELECTRICAL EQUIPMENT (1.5%)
Thomas & Betts Corp. ................................................... 61,200 2,650,725
-------------
MACHINERY (1.7%)
Caterpillar, Inc. ...................................................... 35,000 1,610,000
Deere & Co. ............................................................ 40,000 1,325,000
-------------
2,935,000
-------------
TOTAL CAPITAL GOODS .................................................. 11,939,475
-------------
CONSUMER CYCLICALS (3.0%)
AUTOS & TRUCKS (1.2%)
General Motors Corp. ................................................... 30,000 2,146,875
-------------
RETAIL--GENERAL (1.8%)
Sears Roebuck & Co. .................................................... 35,000 1,487,500
Venator Group, Inc.* ................................................... 250,000 1,609,375
-------------
3,096,875
-------------
TOTAL CONSUMER CYCLICALS ............................................. 5,243,750
-------------
CONSUMER NON-CYCLICALS (9.7%)
BEVERAGES (2.8%)
Seagram Co., Ltd. ...................................................... 130,000 4,940,000
-------------
FOODS (2.7%)
General Mills, Inc. .................................................... 60,000 4,665,000
-------------
HOSPITAL SUPPLIES & SERVICES (1.9%)
Columbia HCA Healthcare Corp. 130,000 3,217,500
-------------
TOBACCO (2.3%)
Philip Morris Cos., Inc. ............................................... 75,000 4,012,500
-------------
TOTAL CONSUMER NON-CYCLICALS 16,835,000
-------------
<PAGE>
CREDIT SENSITIVE (15.2%)
BANKS (4.4%)
Chase Manhattan Corp. .................................................. 50,000 3,403,125
Mellon Bank Corp. ...................................................... 20,000 1,375,000
National City Corp. .................................................... 40,000 2,900,000
-------------
7,678,125
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
FINANCIAL SERVICES (4.6%)
Associates First Capital Corp.,
Class A .............................................................. 80,000 $ 3,390,000
CIT Group, Inc., Class A ............................................... 145,000 4,612,813
-------------
8,002,813
-------------
INSURANCE (2.7%)
Aetna, Inc. ............................................................ 60,000 4,717,500
-------------
UTILITY--ELECTRIC (1.8%)
Cinergy Corp. .......................................................... 90,000 3,093,750
-------------
UTILITY--TELEPHONE (1.7%)
AT&T Corp. ............................................................. 40,000 3,010,000
-------------
TOTAL CREDIT SENSITIVE ............................................... 26,502,188
-------------
ENERGY (12.6%)
OIL--DOMESTIC (6.1%)
Atlantic Richfield Co. ................................................. 40,000 2,610,000
Royal Dutch Petroleum Co. (NY
Shares) .............................................................. 50,000 2,393,750
Sonat, Inc. ............................................................ 100,000 2,706,250
Unocal Corp. ........................................................... 100,000 2,918,750
-------------
10,628,750
-------------
OIL--INTERNATIONAL (1.4%)
Diamond Offshore Drilling, Inc. ........................................ 100,000 2,368,750
-------------
OIL--SUPPLIES & CONSTRUCTION (2.0%)
Halliburton Co. ........................................................ 60,000 1,777,500
Rowan Co., Inc.* ....................................................... 170,000 1,700,000
-------------
3,477,500
-------------
RAILROADS (3.1%)
Union Pacific Corp. .................................................... 120,000 5,407,500
-------------
TOTAL ENERGY ......................................................... 21,882,500
-------------
TECHNOLOGY (24.7%)
ELECTRONICS (11.3%)
3Com Corp.* ............................................................ 85,000 3,809,062
Exabyte Corp.* ......................................................... 279,700 1,538,350
Integrated Device Technology,
Inc.* ................................................................ 435,300 2,666,213
LSI Logic Corp.* ....................................................... 160,000 2,580,000
Novell, Inc.* .......................................................... 230,000 4,168,750
Philips Electronics N.V. (NY
Shares) .............................................................. 40,000 2,707,500
Seagate Technology, Inc.* .............................................. 70,000 2,117,500
-------------
19,587,375
-------------
OFFICE EQUIPMENT (9.8%)
Hewlett Packard Co. .................................................... 45,000 3,074,062
International Business Machines
Corp. ................................................................ 10,000 1,847,500
Mentor Graphics Corp.* ................................................. 275,000 2,337,500
NCR Corp.* ............................................................. 65,000 2,713,750
Scitex Corp., Ltd.* .................................................... 335,300 3,939,775
Silicon Graphics, Inc.* ................................................ 250,000 3,218,750
-------------
17,131,337
-------------
TELECOMMUNICATIONS (3.6%)
Glenayre Technologies, Inc.* ........................................... 300,000 1,331,250
Motorola, Inc. ......................................................... 80,000 4,885,000
-------------
6,216,250
-------------
TOTAL TECHNOLOGY ..................................................... 42,934,962
-------------
TOTAL COMMON STOCKS (83.3%)
(Cost $145,213,522) .................................................. 144,926,313
-------------
</TABLE>
16
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
--------------- ----------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (19.1%)
Federal Home Loan Mortgage
Corporation Discount Note,
1/4/99
(Amortized Cost $33,277,961) .... $ 33,291,000 $ 33,277,961
------------
TOTAL INVESTMENTS (102.4%)
(Cost/Amortized Cost
$178,491,483) ................... 178,204,274
OTHER ASSETS
LESS LIABILITIES (-2.4%) ........ (4,100,071)
------------
NET ASSETS (100%) ................. $174,104,203
============
</TABLE>
- ----------
* Non-income producing
17
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $180,698,493
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 79,912,024
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 13,122,622
Aggregate gross unrealized depreciation .......... (13,790,971)
-------------
Net unrealized (depreciation) .................... $ (668,349)
=============
Federal income tax cost of investments ........... $ 178,872,623
=============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$3,898,408, which was secured by collateral of $3,993,300.
For the period from January 1, 1998 to December 31, 1998 the Portfolio incurred
approximately $13,238 and $14,104 as brokerage commissions with Merrill Lynch
and Co., Inc. and Donaldson, Lufkin and Jenrette Securities Corp. respectively,
both affiliated broker/dealers.
See Notes to Financial Statements.
18
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ----------------
<S> <C> <C>
COMMON STOCKS AND RIGHTS:
CANADA (1.0%)
Magna International, Inc., Class A ..... 600 $ 37,200
Teleglobe, Inc. ........................ 7,600 273,600
---------
TOTAL CANADA .......................... 310,800
---------
JAPAN (3.3%)
Fuji Photo Film Co. .................... 2,000 74,435
Fujikura Ltd. .......................... 9,000 48,330
Fujitsu Ltd. ........................... 4,000 53,345
Ito Yokado Co., Ltd. ................... 1,000 70,004
Kao Corp. .............................. 2,000 45,193
Marui Co., Ltd. ........................ 3,000 57,820
Matsushita Electric Industries Co. ..... 5,000 88,569
Minebea Co., Ltd. ...................... 9,000 103,199
NTT Mobile Communication
Network, Inc. ........................ 2 82,410
Nippon Telegraph & Telephone
Corp. ................................ 10 77,271
Olympus Optical Co. .................... 5,000 57,554
Orix Corp. ............................. 1,000 74,790
Rohm Co. ............................... 1,000 91,183
Tokio Marine & Fire Insurance Co. ...... 7,000 83,739
---------
TOTAL JAPAN ........................... 1,007,842
---------
OTHER EUROPEAN COUNTRIES (11.6%)
AUSTRIA (0.2%)
Mayr-Melnhof Karton AG ................. 1,500 70,104
---------
FRANCE (3.3%)
Cap Gemini S.A. ........................ 125 20,060
Cie Generale des Eaux .................. 565 146,569
Elf Acquitaine S.A. .................... 1,400 161,803
France Telecom S.A. .................... 1,400 111,209
Groupe Danone .......................... 371 106,199
STMicroelectronics N.V. (N.Y.
Shares)* ............................. 2,600 202,963
Scor ................................... 2,600 171,876
Thomson CSF ............................ 2,400 103,050
---------
1,023,729
---------
GERMANY (0.5%)
DaimlerChrysler AG* .................... 1,380 137,048
---------
IRELAND (0.6%)
Bank of Ireland ........................ 8,400 184,067
---------
ITALY (1.6%)
Arnoldo Mondadori Editore .............. 15,400 203,502
Banca di Roma .......................... 92,000 155,791
Telecom Italia S.p.A. .................. 15,600 133,027
---------
492,320
---------
NETHERLANDS (1.2%)
Unilever N.V. .......................... 1,900 162,389
Wolters Kluwer N.V. .................... 900 192,566
---------
354,955
---------
SPAIN (2.3%)
Dinamia Capital Privado* ............... 8,800 100,310
Endesa S.A. ............................ 6,500 171,967
Metrovacesa S.A. ....................... 5,000 149,873
Telefonica S.A. ........................ 3,800 168,717
Telefonica S.A. (Rights)(expiring
1/30/99)* ............................ 3,800 3,369
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ----------------
<S> <C> <C>
Uralita S.A. ........................... 10,200 $ 113,397
---------
707,633
---------
SWITZERLAND (1.9%)
Nestle S.A. (Registered) ............... 49 106,825
Novartis AG (Registered) ............... 88 173,241
Swisscom AG (Registered)* .............. 425 178,181
Valora Holding AG ...................... 400 108,349
---------
566,596
---------
TOTAL OTHER EUROPEAN COUNTRIES ........ 3,536,452
---------
SCANDINAVIA (5.1%)
DENMARK (0.1%)
ISS International Service System
A/S, Class B ......................... 500 32,524
---------
FINLAND (2.0%)
Amer-Yhtymae OYJ, Class A* ............. 5,100 52,711
Nokia OYJ, Class A ..................... 1,400 170,231
Orion-Yhtymae OYJ, Class B ............. 2,620 62,893
Sampo Insurance Co., plc, Class A ...... 3,000 113,847
Sponda OYJ* ............................ 15,210 88,594
Upm-Kymmene OYJ ........................ 4,200 116,966
---------
605,242
---------
NORWAY (0.1%)
Merkantildata ASA ...................... 3,700 36,510
---------
SWEDEN (2.9%)
Autoliv, Inc. .......................... 2,100 75,484
Bure Investment AB ..................... 4,600 65,343
Castellum AB ........................... 5,600 60,871
Custos AB, Class B ..................... 3,000 58,735
Ericsson Telecommunications
(ADR) ................................ 7,500 179,531
ForeningsSparbanken AB ................. 5,900 153,043
Haldex AB .............................. 8,500 86,095
Nordbanken Holding AB .................. 8,400 53,954
Spectra-Physics AB, Class A ............ 5,300 62,520
Tornet Fastighets AB ................... 7,000 102,461
---------
898,037
---------
TOTAL SCANDINAVIA ..................... 1,572,313
---------
UNITED KINGDOM (5.6%)
Bank of Scotland ....................... 10,000 119,297
Billiton plc ........................... 31,800 63,095
British Aerospace plc .................. 12,500 105,966
British Petroleum Co., plc ............. 7,300 109,011
Devro plc .............................. 13,200 37,995
Diageo plc ............................. 15,572 177,220
Glaxo Wellcome plc ..................... 5,100 175,482
HSBC Holdings plc ...................... 4,200 113,906
Lloyds TSB Group plc ................... 8,100 115,229
LucasVarity plc ........................ 20,100 67,054
National Westminster Bank plc .......... 6,000 115,703
Rio Tinto plc (Registered) ............. 6,400 74,433
Shell Transport & Trading Co.
(ADR) ................................ 2,400 89,250
Thomson Travel Group plc ............... 67,000 182,823
Zeneca Group plc ....................... 4,000 174,171
---------
TOTAL UNITED KINGDOM .................. 1,720,635
---------
</TABLE>
19
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- ------------------
<S> <C> <C>
UNITED STATES (39.6%)
3Com Corp.* ............................................................ 3,200 $ 143,400
Allmerica Financial Corp. .............................................. 2,050 118,644
Aluminum Company of America,
Inc. ................................................................. 900 67,106
Ameritech Corp. ........................................................ 3,500 221,812
Associates First Capital Corp.,
Class A .............................................................. 4,200 177,975
Avis Rent A Car, Inc.* ................................................. 4,150 100,378
BMC Software, Inc.* .................................................... 2,320 103,385
Bank of New York Co., Inc. ............................................. 7,000 281,750
BankAmerica Corp. ...................................................... 1,521 91,450
Beckman Coulter, Inc. .................................................. 3,200 173,600
Bethlehem Steel Corp.* ................................................. 5,500 46,062
Black & Decker Corp. ................................................... 3,300 185,006
Bristol-Myers Squibb Co. ............................................... 2,200 294,387
Burlington Northern Santa Fe Corp. 10,800 364,500
Capstar Broadcasting Corp.,
Class A* ............................................................. 8,500 194,437
Case Corp. ............................................................. 900 19,631
Cisco Systems, Inc.* ................................................... 2,400 222,750
Compaq Computer Corp. .................................................. 7,800 327,113
Dell Computer Corp.* ................................................... 2,350 171,991
Dial Corp. ............................................................. 7,400 213,675
E.I. Du Pont de Nemours & Co. .......................................... 1,150 61,022
EMC Corp.* ............................................................. 700 59,500
El Paso Energy Co. ..................................................... 6,100 212,356
Enron Corp. ............................................................ 4,000 228,250
Federal-Mogul Corp. .................................................... 3,250 193,375
First Union Corp. ...................................................... 3,100 188,519
Flextronics International Ltd.* ........................................ 520 44,525
Fox Entertainment Group, Inc.,
Class A* ............................................................. 1,200 30,225
GTE Corp. .............................................................. 3,300 214,500
GenCorp, Inc. .......................................................... 4,500 112,219
General Electric Co. ................................................... 1,000 102,062
General Motors Corp. ................................................... 1,700 121,656
GreenPoint Financial Corp. ............................................. 7,100 249,387
Healthsouth Corp.* ..................................................... 6,000 92,625
Heller Financial, Inc. ................................................. 4,800 141,000
Hertz Corp., Class A ................................................... 1,500 68,437
Ingersol-Rand Co. ...................................................... 5,180 243,136
Intel Corp. ............................................................ 2,200 260,837
International Business Machines
Corp. ................................................................ 1,200 221,700
Johnson & Johnson ...................................................... 3,100 260,012
Keane, Inc.* ........................................................... 900 35,944
Keebler Foods Co.* ..................................................... 4,100 154,262
Kimberly Clark Corp. ................................................... 2,520 137,340
Lowe's Cos., Inc. ...................................................... 4,200 214,988
MCI WorldCom, Inc.* .................................................... 4,300 308,525
Mattel, Inc. ........................................................... 1,200 27,375
Mellon Bank Corp. ...................................................... 2,950 202,813
Micron Technology, Inc.* ............................................... 1,650 83,428
Microsoft Corp.* ....................................................... 700 97,081
Millipore Corp. ........................................................ 1,500 42,656
Mobil Corp. ............................................................ 1,200 104,550
Morton International, Inc. ............................................. 3,400 83,300
Motorola, Inc. ......................................................... 5,350 326,684
Nabisco Holdings Corp. ................................................. 2,300 95,450
Peco Energy Co. ........................................................ 2,500 104,063
PepsiCo, Inc. .......................................................... 4,600 188,313
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- ------------------
<S> <C> <C>
Premier Parks, Inc.* ................................................... 9,600 $ 290,400
Providian Financial Corp. .............................................. 3,900 292,500
Public Service Enterprise Group ........................................ 2,700 108,000
Quintiles Transnational Corp.* ......................................... 2,370 126,499
Rite Aid Corp. ......................................................... 4,900 242,856
Royal Caribbean Cruises Ltd. ........................................... 80 2,960
Safeway, Inc.* ......................................................... 2,800 170,625
Schlumberger Ltd. ...................................................... 1,650 76,106
Tandy Corp. ............................................................ 1,600 65,900
Tele-Communications TCI Ventures
Group, Class A* ...................................................... 9,700 228,556
Telecommunications, Inc., Class A* ..................................... 5,100 282,094
Texas Utilities Co. .................................................... 2,700 126,056
Tyco International Ltd. ................................................ 3,000 226,313
USX-U.S. Steel Group, Inc. ............................................. 800 18,400
United Technologies Corp. .............................................. 500 54,375
Unocal Corp. ........................................................... 4,400 128,425
Unum Corp. ............................................................. 2,875 167,828
Wal-Mart Stores, Inc. .................................................. 2,100 171,019
Warner Lambert Co. ..................................................... 3,200 240,600
Waste Management, Inc. ................................................. 2,700 125,888
World Color Press, Inc.* ............................................... 4,800 146,100
----------
TOTAL UNITED STATES ................................................... 12,122,667
-----------
TOTAL COMMON STOCKS AND
RIGHTS (66.2%)
(Cost $18,181,111).................................................... 20,270,709
-----------
PREFERRED STOCKS:
GERMANY (0.5%)
Henkel KGaA (Cost $114,247) ............................................ 1,700 147,915
-----------
PRINCIPAL
AMOUNT
LONG-TERM DEBT SECURITIES:
OTHER EUROPEAN COUNTRIES
GERMANY (12.3%)
Republic of Germany
Series 93
6.00%, due 9/15/03 .................................................... DEM,700,000
$1,133,864
Series 98
4.75%, due 7/4/08 .................................................... 900,000
577,875
Series 98
5.63%, due 1/4/28 .................................................... 550,000
372,966
Series 121
4.75%, due 11/20/01 .................................................. 2,700,000 1,685,837
-----------
TOTAL OTHER EUROPEAN
COUNTRIES ............................................................ 3,770,542
-----------
UNITED KINGDOM (4.9%)
United Kingdom Treasury
Bill
8.00%, due 12/7/00 .................................................... 90,000 158,258
GBP
United Kingdom Treasury
Note
7.25%, due 12/7/07 .................................................... 660,000 1,330,402
-----------
TOTAL UNITED KINGDOM ................................................... 1,488,660
-----------
</TABLE>
20
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- -------------
<S> <C> <C>
UNITED STATES (14.3%)
Federal National Mortgage
Association (6.9%)
5.63%, due 3/15/01 .............. $530,000 $ 537,740
5.75%, due 4/15/03 .............. 630,000 647,717
5.75%, due 2/15/08 .............. 910,000 944,573
-----------
2,130,030
-----------
U.S. Treasury Note (7.4%)
6.00%, due 8/15/99 .............. 200,000 201,688
6.13%, due 9/30/00 .............. 300,000 307,500
6.50%, due 5/31/02 .............. 750,000 792,187
6.63%, due 2/15/27 .............. 820,000 970,163
-----------
2,271,538
-----------
TOTAL UNITED STATES ............. 4,401,568
-----------
TOTAL LONG-TERM DEBT SECURITIES: (31.5%)
(Cost $9,308,209)........... .... 9,660,770
-----------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (1.3%)
General Motors Acceptance Corp.
5.13%, 1/4/99 (Amortized Cost
$384,835) ...................... 385,000 384,835
-----------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost
$27,988,402) .................... 30,464,229
OTHER ASSETS
LESS LIABILITIES (0.5%) ......... 166,733
-----------
NET ASSETS (100%) ................ $30,630,962
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
MARKET SECTOR DIVERSIFICATION (Unaudited)
As a Percentage of Total Common Stocks,
Preferred Stocks, and Rights
Basic Materials ......................... 4.6%
Business Services ....................... 4.9
Capital Goods ........................... 6.9
Consumer Cyclicals ...................... 10.2
Consumer Non-Cyclicals .................. 15.1
Credit Sensitive ........................ 22.5
Diversified ............................. 2.3
Energy .................................. 7.7
Technology
Electronics ........................... 3.0
Office Equipment ...................... 7.1
Office Equipment Services ............. 1.2
Telecommunications .................... 14.5
----
Total Technology ........................ 25.8
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
DEM--German Mark
GBP--British Pound
21
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
British Pound, expiring 1/7/99-2/4/99 ......... 1,850 $ 3,078,482 $ 3,076,578 $ 1,904
Canadian Dollar, expiring 2/22/99 ............. 415 268,153 270,045 (1,892)
--------
$ 12
========
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $35,571,188
U.S. Government securities ............................. 6,556,889
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 23,881,095
U.S. Government securities ............................. 4,687,422
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 3,227,734
Aggregate gross unrealized depreciation .......... (775,876)
-----------
Net unrealized appreciation ...................... $ 2,451,858
===========
Federal income tax cost of investments ........... $28,012,371
===========
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$3,471,027, which was secured by collateral valued at $3,536,218 of which
$1,605,158 was in the form of U.S. Government securities.
For the period from January 1, 1998 to December 31, 1998 the Portfolio incurred
approximately $2,260 and $5,171 as brokerage commissions with Donaldson, Lufkin
and Jenrette Securities Corp. and Merrill Lynch and Co., Inc. respectively,
both affiliated broker/dealers.
The Portfolio has a net capital loss carryforward of $1,533,428 which expires
in the year 2006.
See Notes to Financial Statements.
22
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (0.0%)
CHEMICALS (0.0%)
Waters Corp.* ........................ 2,600 $ 226,850
-----------
BUSINESS SERVICES (16.7%)
PRINTING, PUBLISHING, BROADCASTING (6.1%)
American Tower Corp., Class A* 9,700 286,756
CBS Corp. ............................ 25,500 835,125
Clear Channel Communications,
Inc.* .............................. 81,700 4,452,650
Comcast Corp., Class A ............... 103,505 6,074,450
Cox Radio Inc., Class A* ............. 14,700 621,075
Hearst-Argyle Television, Inc.* ...... 900 29,700
Jacor Communications, Inc.* .......... 35,100 2,259,563
Learning Tree International,
Inc.* .............................. 38,000 344,375
Mail-Well, Inc.* ..................... 500 5,719
MediaOne Group, Inc.* ................ 60,400 2,838,800
Outdoor Systems, Inc.* ............... 900 27,000
Siebel Systems, Inc.* ................ 700 23,756
SportsLine USA, Inc.* ................ 31,600 491,775
TCA Cable TV, Inc. ................... 900 32,119
Time Warner, Inc. .................... 158,400 9,830,700
Univision Communications, Inc.,
Class A* ........................... 1,000 36,187
USA Networks, Inc.* .................. 1,500 49,687
-----------
28,239,437
-----------
PROFESSIONAL SERVICES (10.0%)
Aztec Technology Partners, Inc.* 1 4
BISYS Group, Inc.* ................... 24,400 1,259,650
Cendant Corp.* ....................... 696,352 13,274,210
Clarify, Inc.* ....................... 1,300 31,769
Compuware Corp.* ..................... 314,900 24,601,562
Galileo International, Inc. .......... 28,100 1,222,350
Interim Services, Inc.* .............. 1,100 25,712
Lamar Advertising Co.* ............... 600 22,350
Loewen Group, Inc. ................... 2,100 17,719
Metamor Worldwide, Inc.* ............. 800 20,000
Modis Professional Services, Inc.* 131,500 1,906,750
Orthodontic Centers of America,
Inc.* .............................. 1,300 25,269
Pacificare Health Systems, Inc.,
Class B* ........................... 400 31,800
Policy Management Systems
Corp.* ............................. 58,240 2,941,120
Professional Detailing, Inc.* ........ 600 16,950
Renaissance Worldwide, Inc.* ......... 8,000 49,000
SEMA Group plc ....................... 104,720 1,029,741
Taylor Nelson Sofres plc ............. 238,900 304,081
Wellpoint Health Networks, Inc.* 300 26,100
-----------
46,806,137
-----------
TRUCKING, SHIPPING (0.6%)
Atlas Air, Inc.* ..................... 600 29,362
FDX Corp.* ........................... 28,900 2,572,100
Newport News Shipbuilding, Inc. 9,800 327,688
-----------
2,929,150
-----------
TOTAL BUSINESS SERVICES ............ 77,974,724
-----------
CAPITAL GOODS (0.3%)
AEROSPACE (0.2%)
Gulfstream Aerospace Corp.* .......... 15,300 814,725
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
BUILDING & CONSTRUCTION (0.0%)
Building One Services Corp.* ......... 1,400 $ 29,225
-----------
ELECTRICAL EQUIPMENT (0.1%)
Flextronics International Ltd.* ...... 350 29,969
Rayovac Corp.* ....................... 1,700 45,369
SCI Systems, Inc.* ................... 500 28,875
SIPEX Corp.* ......................... 800 28,100
Teradyne, Inc.* ...................... 1,100 46,612
-----------
178,925
-----------
MACHINERY (0.0%)
SI Handling Systems, Inc. ............ 10,950 153,300
-----------
TOTAL CAPITAL GOODS ................ 1,176,175
-----------
CONSUMER CYCLICALS (11.3%)
APPAREL & TEXTILES (0.0%)
Abercrombie & Fitch Co.,
Class A* ........................... 500 35,375
AnnTaylor Stores Corp.* .............. 800 31,550
Linens'n Things, Inc.* ............... 800 31,700
-----------
98,625
-----------
AUTO RELATED (0.1%)
CSK Auto Corp.* ...................... 700 18,681
Dura Automotive Systems, Inc.* 500 17,063
Republic Industries, Inc.* ........... 9,100 134,225
-----------
169,969
-----------
FOOD SERVICES, LODGING (0.1%)
Applebee's International, Inc. ....... 1,400 28,875
Brinker International, Inc.* ......... 900 25,987
Buffets, Inc.* ....................... 2,800 33,425
CEC Entertainment, Inc.* ............. 700 19,425
CKE Restaurants, Inc. ................ 550 16,191
IHOP Corp.* .......................... 400 15,975
Outback Steakhouse, Inc.* ............ 700 27,913
Papa John's International, Inc.* ..... 600 26,475
Promus Hotel Corp.* .................. 6,077 196,743
-----------
391,009
-----------
HOUSEHOLD FURNITURE, APPLIANCES (0.1%)
Gemstar International Group
Ltd.* .............................. 8,700 498,075
Sotheby's Holdings, Inc.,
Class A ............................ 1,100 35,200
-----------
533,275
-----------
LEISURE RELATED (0.0%)
Premier Parks, Inc.* ................. 1,000 30,250
-----------
PHOTO & OPTICAL (0.3%)
Allergan, Inc. ....................... 16,600 1,074,850
Bausch & Lomb, Inc. .................. 7,200 432,000
-----------
1,506,850
-----------
RETAIL--GENERAL (10.7%)
Borders Group, Inc.* ................. 700 17,456
Consolidated Stores Corp.* ........... 700 14,131
CVS Corp. ............................ 142,300 7,826,500
Duane Reade, Inc.* ................... 600 23,100
Fred Meyer, Inc.* .................... 151,200 9,109,800
Global DirectMail Corp.* ............. 1,300 30,387
Gymboree Corp.* ...................... 15,500 98,813
Home Depot, Inc. ..................... 65,605 4,014,206
Office Depot, Inc.* .................. 295,500 10,915,031
Rite Aid Corp. ....................... 176,500 8,747,781
Staples, Inc.* ....................... 195,150 8,525,616
</TABLE>
23
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
The Learning Co., Inc.* ................................................ 800 $ 20,750
TJX Cos., Inc. ......................................................... 22,600 655,400
------------
49,998,971
------------
TOTAL CONSUMER CYCLICALS ............................................. 52,728,949
------------
CONSUMER NON-CYCLICALS (10.2%)
BEVERAGES (0.1%)
Adolph Coors Co., Class B .............................................. 3,900 220,106
------------
DRUGS (3.9%) ...........................................................
Agouron Pharmaceuticals, Inc.* ......................................... 600 35,250
Alpharma, Inc. ......................................................... 800 28,250
AmeriSource Health Corp.,
Class A* ............................................................. 300 19,500
Amgen, Inc.* ........................................................... 16,700 1,746,194
Bergen Brunswig Corp., Class A 13,000 453,375
Biogen, Inc.* .......................................................... 5,000 415,000
Cardinal Health, Inc. .................................................. 32,000 2,428,000
Elan Corp. plc (ADR)* .................................................. 11,500 799,969
ICON plc (ADR)* ........................................................ 100 3,350
IDEC Pharmaceuticals Corp.* ............................................ 14,100 662,700
Immunex Corp.* ......................................................... 280 35,227
King Pharmaceuticals, Inc.* ............................................ 1,800 47,475
McKesson Corp. ......................................................... 45,100 3,565,719
Sepracor, Inc.* ........................................................ 83,600 7,367,250
Watson Pharmaceutical, Inc* ............................................ 11,400 716,775
------------
18,324,034
------------
FOODS (0.0%)
Keebler Foods Co.* ..................................................... 700 26,338
Smithfield Foods, Inc.* ................................................ 800 27,100
------------
53,438
------------
HOSPITAL SUPPLIES & SERVICES (4.5%)
Allegiance Corp. ....................................................... 82,900 3,865,212
Arterial Vascular Engineering,
Inc.* ................................................................ 500 26,250
Biomet, Inc. ........................................................... 1,000 40,250
Boston Scientific Corp.* ............................................... 1,200 32,175
Cyberonics, Inc.* ...................................................... 200 2,700
Express Scripts, Inc., Class A* ........................................ 500 33,562
Genzyme Corp. (General
Division)* ........................................................... 700 34,825
Guidant Corp. .......................................................... 71,500 7,882,875
Haemonetics Corp.* ..................................................... 1,700 38,675
Health Management Associates,
Inc., Class A* ....................................................... 1,600 34,600
Healthsouth Corp.* ..................................................... 3,000 46,312
Henry Schein, Inc.* .................................................... 400 17,900
IDEXX Laboratories, Inc.* .............................................. 21,200 570,413
Medtronic, Inc. ........................................................ 94,900 7,046,325
Mid Atlantic Medical Services,
Inc.* ................................................................ 2,800 27,475
National Data Corp. .................................................... 500 24,344
Province Healthcare Co.* ............................................... 800 28,700
PSS World Medical, Inc.* ............................................... 48,600 1,117,800
STERIS Corp.* .......................................................... 900 25,594
Total Renal Care Holdings, Inc.* 748 22,113
------------
20,918,100
------------
RETAIL--FOOD (1.7%)
General Nutrition Cos., Inc.* .......................................... 1,500 24,375
Kroger Co.* ............................................................ 30,900 1,869,450
Safeway, Inc.* ......................................................... 98,000 5,971,875
------------
7,865,700
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
SOAPS & TOILETRIES (0.0%)
Carson, Inc.* .......................................................... 1,000 $ 4,000
Chattem, Inc.* ......................................................... 600 28,725
Dial Corp. ............................................................. 900 25,987
------------
58,712
------------
TOTAL CONSUMER NON-CYCLICALS 47,440,090
------------
CREDIT SENSITIVE (7.2%)
BANKS (0.0%)
US Trust Corp. ......................................................... 2,400 182,400
------------
FINANCIAL SERVICES (1.6%)
Affiliated Managers Group, Inc.* 900 26,887
Associates First Capital Corp.,
Class A .............................................................. 39,400 1,669,575
Bear Stearns Co., Inc. ................................................. 29,600 1,106,300
Capital One Financial Corp. ............................................ 8,400 966,000
CIT Group, Inc., Class A ............................................... 700 22,269
First Data Corp. ....................................................... 4,100 129,919
Franklin Resources, Inc. ............................................... 35,700 1,142,400
Morgan Stanley Dean Witter &
Co. .................................................................. 32,400 2,300,400
Paine Webber Group, Inc. ............................................... 800 30,900
Waddell & Reed Financial,
Class A .............................................................. 1,000 23,688
------------
7,418,338
------------
INSURANCE (0.6%)
Ace Ltd. ............................................................... 600 20,663
United Healthcare Corp. ................................................ 64,200 2,764,612
------------
2,785,275
------------
UTILITY--TELEPHONE (5.0%)
MCI WorldCom, Inc.* .................................................... 325,963 23,387,845
------------
TOTAL CREDIT SENSITIVE ............................................... 33,773,858
------------
DIVERSIFIED (5.8%)
MISCELLANEOUS (5.8%)
First Brands Corp. ..................................................... 700 27,606
Tyco International Ltd. ................................................ 356,719 26,909,990
------------
TOTAL DIVERSIFIED ..................................................... 26,937,596
------------
ENERGY (0.2%)
OIL-SUPPLIES & CONSTRUCTION (0.0%)
Global Industries Ltd.* ................................................ 4,200 25,725
------------
RAILROADS (0.2%)
Kansas City Southern Industries,
Inc. ................................................................. 17,800 875,537
------------
TOTAL ENERGY ........................................................... 901,262
------------
TECHNOLOGY (46.9%)
ELECTRONICS (21.5%)
3Com Corp.* ............................................................ 95,500 4,279,594
Advantage Learning Systems,
Inc.* ................................................................ 400 26,300
Affiliated Computer Services,
Inc., Class A* ....................................................... 12,300 553,500
Altera Corp.* .......................................................... 63,000 3,835,125
Analog Devices, Inc.* .................................................. 66,700 2,092,713
Applied Micro Circuits Corp.* .......................................... 700 23,778
ARM Holdings plc (ADR)* ................................................ 12,665 763,066
Aspen Technologies, Inc.* .............................................. 500 7,250
Autodesk, Inc. ......................................................... 650 27,747
BMC Software, Inc.* .................................................... 316,500 14,104,031
</TABLE>
24
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ --------------
<S> <C> <C>
Burr-Brown Corp.* ................... 1,000 $ 23,438
Cable Design Technologies* .......... 1,700 31,450
Cadence Design Systems, Inc.* ....... 197,290 5,869,378
CBT Group plc (ADR)* ................ 22,100 328,738
Computer Associates
International, Inc. ............... 385,100 16,414,888
DII Group, Inc.* .................... 1,300 29,900
EMC Corp.* .......................... 116,000 9,860,000
Galileo Technology Ltd.* ............ 2,000 54,000
Gentex Corp.* ....................... 1,500 30,000
Intel Corp. ......................... 32,400 3,841,425
Intuit, Inc.* ....................... 400 29,000
Jabil Circuit, Inc.* ................ 400 29,850
Lattice Semiconductor Corp.* ........ 42,000 1,928,063
Level One Communications,
Inc.* ............................. 800 28,400
Linear Technology Corp. ............. 14,600 1,307,613
Maxim Integrated Products* .......... 600 26,212
Micrel, Inc.* ....................... 500 27,500
Micro Warehouse, Inc.* .............. 98,600 3,333,912
Microsoft Corp.* .................... 161,000 22,328,687
MIPS Technologies, Inc.* ............ 1,000 32,000
New Era of Networks, Inc.* .......... 800 35,200
Photronics, Inc.* ................... 1,200 28,762
PMC-Sierra, Inc.* ................... 600 37,875
Rational Software Corp.* ............ 1,100 29,150
Sanmina Corp.* ...................... 500 31,250
Sun Microsystems, Inc.* ............. 59,500 5,094,687
Synopsys, Inc.* ..................... 19,400 1,052,450
Technology Solutions Co.* ........... 25,300 271,184
Xilinx, Inc.* ....................... 41,900 2,728,737
------------
100,576,853
------------
OFFICE EQUIPMENT (12.5%)
Boise Cascade Office Products* ...... 1,200 16,200
Boole & Babbage, Inc.* .............. 800 23,550
Ceridian Corp.* ..................... 13,500 942,468
Cisco Systems, Inc.* ................ 305,501 28,354,312
Compaq Computer Corp. ............... 39,600 1,660,725
CompUSA, Inc.* ...................... 13,600 177,650
Corporate Express, Inc.* ............ 56,000 290,500
DST Systems, Inc.* .................. 14,500 827,406
Insight Enterprises, Inc.* .......... 600 30,525
Lexmark International Group,
Inc.* ............................. 7,500 753,750
Macromedia, Inc.* ................... 8,500 286,344
Mobius Management Systems,
Inc.* ............................. 14,400 214,200
Oracle Corp.* ....................... 572,812 24,702,518
------------
58,280,148
------------
OFFICE EQUIPMENT SERVICES (3.0%)
Ascend Communications, Inc.* ........ 83,100 5,463,825
Cambridge Technology Partners,
Inc.* ............................. 22,500 497,812
Computer Sciences Corp. ............. 14,600 940,787
Equant N.V. (NY Shares)
(Registered)* ..................... 21,300 1,444,406
Ingram Micro, Inc.* ................. 600 20,925
Microchip Technology, Inc.* ......... 700 25,900
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ --------------
<S> <C> <C>
Networks Associates, Inc.* .......... 78,150 $ 5,177,438
Sungard Data Systems, Inc.* ......... 12,900 511,969
Verio, Inc.* ........................ 900 20,138
-------------
14,103,200
-------------
TELECOMMUNICATIONS (9.9%)
Alcatel Alsthom (ADR) ............... 21,600 527,850
Alltel Corp. ........................ 47,400 2,835,113
Amdocs Ltd.* ........................ 1,800 30,825
Aspect Telecommunications
Corp.* ............................ 1,000 17,250
Century Telephone Enterprises,
Inc. .............................. 90,000 6,075,000
CSG System International, Inc.* ..... 400 31,600
DSP Communications, Inc* ............ 1,900 29,094
Electronics for Imaging, Inc.* ...... 900 36,169
EchoStar Communications Corp.,
Class A* .......................... 700 33,863
Fiserv, Inc.* ....................... 600 30,863
Gilat Satellite Networks Ltd.* ...... 500 27,563
Global Crossing Ltd.* ............... 1,500 67,687
Global TeleSystems Group, Inc.* 136,500 7,609,875
Hyperion Communications, Inc.,
Class A* .......................... 1,800 27,225
Iridium World Communications,
Inc.* ............................. 8,900 352,106
L-3 Communications Holdings
Corp.* ............................ 3,900 181,594
Lucent Technologies, Inc. ........... 76,500 8,415,000
Metromedia Fiber Network, Inc.
Class A* .......................... 1,000 33,500
Nokia Oyj (ADR) ..................... 37,700 4,540,494
Qwest Communications
International, Inc.* .............. 148,400 7,420,000
Sprint Corp. (Fon Group) ............ 71,700 6,031,762
Tel-Save Holdings, Inc.* ............ 40,000 670,000
Tele-Communications, Liberty
Media, Inc., Class A* ............. 9,800 451,412
Tellabs, Inc.* ...................... 12,900 884,456
VeriSign, Inc.* ..................... 500 29,562
-------------
46,389,863
-------------
TOTAL TECHNOLOGY .................... 219,350,064
-------------
TOTAL COMMON STOCKS (98.6%)
(Cost $363,619,530)................ 460,509,568
-------------
PREFERRED STOCKS:
TECHNOLOGY (0.0%)
ELECTRONICS (0.0%)
SAP AG (Non Voting)
(Cost $75,442) .................... 110 52,772
-------------
TOTAL INVESTMENTS (98.6%)
(Cost $363,694,972) ............... 460,562,340
OTHER ASSETS
LESS LIABILITIES (1.4%) ........... 6,722,721
-------------
NET ASSETS (100%) ................... $467,285,061
=============
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
25
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $479,451,466
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 188,036,831
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 105,453,312
Aggregate gross unrealized depreciation .......... (11,160,523)
-------------
Net unrealized appreciation ...................... $ 94,292,789
=============
Federal income tax cost of investments ........... $ 366,269,551
=============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$29,706,145, which was secured by cash collateral of $29,725,924.
For the period from January 1, 1998 to December 31, 1998 the Portfolio incurred
approximately $600 as brokerage commissions with Pershing Trading Co., LP, an
affiliated broker/dealer.
The Portfolio has a net capital loss carryforward of $10,613,683 which expires
in the year 2006.
See Notes to Financial Statements.
26
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (1.1%)
CHEMICALS (0.3%)
E.I. Du Pont de Nemours & Co. 24,600 $ 1,305,338
------------
CHEMICALS--SPECIALTY (0.2%)
Cambrex Corp. .......................................................... 34,700 832,800
------------
PAPER (0.6%)
Smurfit-Stone Container Corp.* ......................................... 162,594 2,571,017
------------
TOTAL BASIC MATERIALS ................................................. 4,709,155
------------
BUSINESS SERVICES (6.7%)
ENVIRONMENTAL CONTROL (0.4%)
Browning-Ferris Industries, Inc. ....................................... 52,900 1,504,344
------------
PRINTING, PUBLISHING, BROADCASTING (3.1%)
CBS Corp. .............................................................. 128,700 4,214,925
Intermedia Communications of
Florida, Inc.* ....................................................... 47,000 810,750
Jacor Communications, Inc.* ............................................ 700 45,062
MediaOne Group, Inc.* .................................................. 63,100 2,965,700
Time Warner, Inc. ...................................................... 75,600 4,691,925
------------
12,728,362
------------
PROFESSIONAL SERVICES (2.7%)
Cendant Corp.* ......................................................... 86,630 1,651,384
Compuware Corp.* ....................................................... 111,100 8,679,688
Modis Professional Services, Inc.* 32,800 475,600
------------
10,806,672
------------
TRUCKING, SHIPPING (0.5%)
Newport News Shipbuilding, Inc. 61,900 2,069,781
------------
TOTAL BUSINESS SERVICES ............................................... 27,109,159
------------
CAPITAL GOODS (5.5%)
AEROSPACE (3.6%)
British Aerospace plc .................................................. 269,900 2,288,011
Lockheed Martin Corp. .................................................. 26,800 2,271,300
United Technologies Corp. .............................................. 91,400 9,939,750
------------
14,499,061
------------
ELECTRICAL EQUIPMENT (1.7%)
Black & Decker Corp. ................................................... 21,700 1,216,557
Emerson Electric Co. ................................................... 96,700 5,850,350
------------
7,066,907
------------
MACHINERY (0.2%)
Illinois Tool Works, Inc. .............................................. 12,300 713,400
------------
TOTAL CAPITAL GOODS ................................................... 22,279,368
------------
CONSUMER CYCLICALS (9.3%)
AUTO RELATED (0.3%)
Federal-Mogul Corp. .................................................... 9,400 559,300
Lucasvarity plc ........................................................ 257,600 859,353
------------
1,418,653
------------
FOOD SERVICES, LODGING (1.6%)
CKE Restaurants, Inc. .................................................. 77,960 2,294,948
Jarvis Hotels plc ...................................................... 79,900 155,540
McDonald's Corp. ....................................................... 52,200 3,999,825
------------
6,450,313
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.5%)
Newell Co. ............................................................. 44,400 1,831,500
------------
RETAIL--GENERAL (6.9%)
CVS Corp. .............................................................. 92,900 5,109,500
Dayton Hudson Corp. .................................................... 70,500 3,824,625
Fred Meyer, Inc.* ...................................................... 74,000 4,458,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Home Depot, Inc. ....................................................... 35,300 $ 2,159,919
Office Depot, Inc.* .................................................... 70,300 2,596,706
Rite Aid Corp. ......................................................... 182,000 9,020,375
TJX Cos., Inc. ......................................................... 29,700 861,300
------------
28,030,925
------------
TOTAL CONSUMER CYCLICALS .............................................. 37,731,391
------------
CONSUMER NON-CYCLICALS (20.1%)
DRUGS (6.0%)
American Home Products Corp. ........................................... 154,900 8,722,806
Bristol-Myers Squibb Co. ............................................... 37,200 4,977,825
Cardinal Health, Inc. .................................................. 40,750 3,091,906
Pfizer, Inc. ........................................................... 62,600 7,852,388
------------
24,644,925
------------
FOODS (3.1%)
Archer Daniels Midland Co. ............................................. 101,690 1,747,797
Dean Foods Co. ......................................................... 32,000 1,306,000
Hershey Foods Corp. .................................................... 60,300 3,749,906
Hormel Foods Corp. ..................................................... 33,900 1,110,225
McCormick & Co., Inc. (Non
Voting) .............................................................. 40,300 1,362,644
Ralston Purina Group ................................................... 98,600 3,192,175
------------
12,468,747
------------
HOSPITAL SUPPLIES & SERVICES (2.7%)
Guidant Corp. .......................................................... 52,100 5,744,025
Healthsouth Corp.* ..................................................... 236,558 3,651,864
Monsanto Co. ........................................................... 30,600 1,453,500
------------
10,849,389
------------
RETAIL--FOOD (1.9%)
Albertson's, Inc. ...................................................... 19,500 1,241,906
American Stores Co. .................................................... 32,900 1,215,244
Safeway, Inc.* ......................................................... 90,000 5,484,375
------------
7,941,525
------------
SOAPS & TOILETRIES (5.0%)
Clorox Co. ............................................................. 32,000 3,738,000
Colgate Palmolive Co. .................................................. 41,300 3,835,737
Dial Corp. ............................................................. 109,500 3,161,813
Gillette Co. ........................................................... 90,900 4,391,606
Procter & Gamble Co. ................................................... 59,500 5,433,094
------------
20,560,250
------------
TOBACCO (1.4%)
Philip Morris Cos., Inc. ............................................... 105,000 5,617,500
------------
TOTAL CONSUMER NON-CYCLICALS 82,082,336
------------
CREDIT SENSITIVE (21.8%)
BANKS (4.6%)
Bank of New York Co., Inc. ............................................. 88,600 3,566,150
Chase Manhattan Corp. .................................................. 45,300 3,083,231
Citigroup, Inc. ........................................................ 47,700 2,361,150
First Union Corp. ...................................................... 64,062 3,895,770
Istituto Bancario San Paolo
S.p.A.* .............................................................. 178,133 3,145,741
Wells Fargo Co. ........................................................ 68,200 2,723,738
------------
18,775,780
------------
FINANCIAL SERVICES (6.3%)
American Express Co. ................................................... 21,000 2,147,250
Associates First Capital Corp.,
Class A .............................................................. 69,514 2,945,656
Bear Stearns Co., Inc. ................................................. 54,100 2,021,988
CIT Group, Inc., Class A ............................................... 17,200 547,175
Conseco, Inc. .......................................................... 66,323 2,026,997
</TABLE>
27
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ ---------------
<S> <C> <C>
Fannie Mae ........................ 64,700 $ 4,787,800
Federal Home Loan Mortgage
Corp. ........................... 73,800 4,755,488
ING Groep N.V. .................... 62,835 3,831,197
Morgan Stanley Dean Witter &
Co. ............................. 35,000 2,485,000
------------
25,548,551
------------
INSURANCE (6.8%)
Ace Ltd. .......................... 57,400 1,976,712
Allstate Corp. .................... 44,100 1,703,362
CIGNA Corp. ....................... 51,200 3,958,400
EXEL Ltd., Class A ................ 15,408 1,155,600
Hartford Financial Services
Group, Inc. ..................... 78,300 4,296,713
Lincoln National Corp. ............ 63,400 5,186,913
Nationwide Financial Services,
Inc., Class A ................... 38,000 1,964,125
Reliastar Financial Corp. ......... 52,762 2,433,647
United Healthcare Corp. ........... 120,000 5,167,500
------------
27,842,972
------------
UTILITY--ELECTRIC (0.5%)
CalEnergy Co., Inc.* .............. 61,600 2,136,750
------------
UTILITY--TELEPHONE (3.6%)
MCI WorldCom, Inc.* ............... 157,415 11,294,526
Sprint Corp. (Fon Group) .......... 39,600 3,331,350
------------
14,625,876
------------
TOTAL CREDIT SENSITIVE ........... 88,929,929
------------
DIVERSIFIED (4.5%)
MISCELLANEOUS (4.5%)
Federal Signal Corp. .............. 31,500 862,313
Tyco International Ltd. ........... 171,886 12,966,650
Walt Disney (The) Co. ............. 155,200 4,656,000
------------
TOTAL DIVERSIFIED ................ 18,484,963
------------
ENERGY (2.9%)
COAL & GAS PIPELINES (0.8%)
Columbia Energy Group ............. 30,250 1,746,937
K N Energy, Inc. .................. 36,400 1,324,050
------------
3,070,987
------------
OIL--DOMESTIC (0.3%)
Amoco Corp. ....................... 4,500 271,688
Mobil Corp. ....................... 10,400 906,100
------------
1,177,788
------------
OIL--INTERNATIONAL (1.7%)
British Petroleum Co. plc (ADR) 74,509 7,078,355
------------
OIL--SUPPLIES & CONSTRUCTION (0.1%)
Cooper Cameron Corp.* ............. 22,100 541,450
------------
TOTAL ENERGY ..................... 11,868,580
------------
TECHNOLOGY (22.8%)
ELECTRONICS (14.9%)
3Com Corp.* ....................... 65,100 2,917,294
Analog Devices, Inc.* ............. 136,200 4,273,275
BMC Software, Inc.* ............... 125,000 5,570,313
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ ---------------
<S> <C> <C>
Cadence Design Systems, Inc.* ..... 109,700 $ 3,263,575
Computer Associates
International, Inc. ............. 95,550 4,072,819
HBO & Co. ......................... 265,100 7,605,056
Intel Corp. ....................... 55,700 6,603,931
Lattice Semiconductor Corp.* ...... 1,500 68,859
Microsoft Corp.* .................. 145,200 20,137,425
Sun Microsystems, Inc.* ........... 53,000 4,538,125
Synopsys, Inc.* ................... 32,500 1,763,125
------------
60,813,797
------------
OFFICE EQUIPMENT (5.8%)
Cisco Systems, Inc.* .............. 61,800 5,735,812
CompUSA, Inc.* .................... 84,400 1,102,475
EMC Corp.* ........................ 37,100 3,153,500
Oracle Corp.* ..................... 222,000 9,573,750
Xerox Corp. ....................... 35,300 4,165,400
------------
23,730,937
------------
TELECOMMUNICATIONS (2.1%)
Alcatel Alsthom (ADR) ............. 122,500 2,993,593
Aspect Telecommunications
Corp.* .......................... 18,600 320,850
Lucent Technologies, Inc. ......... 41,200 4,532,000
Sprint Corp. (PCS Group)* ......... 19,750 456,719
------------
8,303,162
------------
TOTAL TECHNOLOGY ................. 92,847,896
------------
TOTAL COMMON STOCKS (94.7%)
(Cost $327,419,362) ............ 386,042,777
------------
PRINCIPAL
AMOUNT
--------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (5.0%)
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/4/99 ......... $ 290,000 289,887
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/6/99 ......... 5,513,000 5,509,125
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/13/99 ........ 6,700,000 6,688,610
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/14/98 ........ 7,800,000 7,785,692
------------
TOTAL SHORT-TERM DEBT SECURITIES (5.0%)
(Amortized Cost $20,273,314) ..... 20,273,314
------------
TOTAL INVESTMENTS (99.7%)
(Cost/Amortized Cost
$347,692,676) ................... 406,316,091
OTHER ASSETS
LESS LIABILITIES (0.3%) ......... 1,302,909
------------
NET ASSETS (100%) ................. $407,619,000
============
</TABLE>
- ----------
* Non-income producing
Glossary:
ADR--American Depositary Reciept
28
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pounds, expiring 1/7/99 ................ 8 $ 14,102 $ 13,934 $ (168)
Italian Lira, expiring 1/6/99 .................. 166,553 100,753 100,757 4
Netherlands Guilder, 1/5/99 .................... 233 123,540 123,975 434
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, expiring 1/4/99-1/7/99 ......... 222 372,117 369,637 2,480
-------
$ 2,750
=======
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $393,018,547
U.S. Government securities ............................. 5,094,486
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 166,714,606
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 67,234,197
Aggregate gross unrealized depreciation .......... (10,729,268)
-------------
Net unrealized appreciation ...................... $ 56,504,929
=============
Federal income tax cost of investments ........... $ 349,811,162
=============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$18,335,052, which was secured by collateral of $17,820,637.
The value of the collateral was sufficient at the time loan agreements were
entered into. As a result of an increase in the market value of the loaned
securities on the last business day for the year, the Portfolio was furnished
with additional collateral the following business day. For the period from
January 1, 1998 to December 31, 1998 the Portfolio incurred approximately $408
and $48 as brokerage commissions with Donaldson, Lufkin and Jenrette Securities
Corp. and Pershing Trading Co., LP respectively, both affiliated
broker/dealers.
<PAGE>
The Portfolio has a net capital loss carryforward of $5,142,662 which expires
in the year 2006.
See Notes to Financial Statements.
29
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (2.9%)
CHEMICALS (1.5%)
Dow Chemical Co. ....................................................... 3,600 $ 327,375
E.I. Du Pont de Nemours & Co. 10,300 546,544
Eastman Chemical Co. ................................................... 5,353 239,547
------------
1,113,466
------------
PAPER (1.4%)
Kimberly Clark Corp. ................................................... 7,800 425,100
Temple-Inland, Inc. .................................................... 2,560 151,840
Weyerhaeuser Co. ....................................................... 10,500 533,531
------------
1,110,471
------------
TOTAL BASIC MATERIALS ................................................. 2,223,937
------------
BUSINESS SERVICES (2.1%)
PRINTING, PUBLISHING,
BROADCASTING (1.7%)
McGraw Hill Cos., Inc. ................................................. 3,800 387,125
MediaOne Group, Inc.* .................................................. 10,400 488,800
Tribune Co. ............................................................ 6,100 402,600
------------
1,278,525
------------
TRUCKING, SHIPPING (0.4%)
Ryder System, Inc. ..................................................... 12,200 317,200
------------
TOTAL BUSINESS SERVICES ............................................... 1,595,725
------------
CAPITAL GOODS (2.4%) ...................................................
AEROSPACE (1.0%)
Allied Signal, Inc. .................................................... 8,500 376,656
Raytheon Co., Class B .................................................. 7,200 383,400
------------
760,056
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.3%)
Sherwin-Williams Co. ................................................... 7,100 208,562
------------
ELECTRICAL EQUIPMENT (0.6%)
Emerson Electric Co. ................................................... 6,400 387,200
Rockwell International Corp. ........................................... 1,760 85,470
------------
472,670
------------
MACHINERY (0.5%)
Deere & Co. ............................................................ 10,500 347,813
------------
TOTAL CAPITAL GOODS ................................................... 1,789,101
------------
CONSUMER CYCLICALS (5.2%)
AIRLINES (0.9%)
Delta Airlines, Inc. ................................................... 6,300 327,600
UAL Corp.* ............................................................. 6,200 370,063
------------
697,663
------------
AUTOS & TRUCKS (1.5%)
Ford Motor Co. ......................................................... 11,900 698,381
General Motors Corp. ................................................... 6,400 458,000
------------
1,156,381
------------
PHOTO & OPTICAL (0.4%)
Eastman Kodak Co. ...................................................... 4,600 331,200
------------
RETAIL--GENERAL (2.4%)
Federated Department Stores,
Inc.* ................................................................ 8,600 374,637
Hasbro, Inc. ........................................................... 10,400 375,700
J.C. Penny Co. ......................................................... 4,200 196,875
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
May Department Stores Co. .............................................. 6,000 $ 362,250
Sears Roebuck & Co. .................................................... 11,000 467,500
------------
1,776,962
------------
TOTAL CONSUMER CYCLICALS .............................................. 3,962,206
------------
CONSUMER NON-CYCLICALS (11.9%)
BEVERAGES (1.1%)
Anheuser-Busch Cos., Inc. .............................................. 8,300 544,688
Whitman Corp. .......................................................... 11,200 284,200
------------
828,888
------------
CONTAINERS (0.5%)
Owens-Illinois, Inc.* .................................................. 12,000 367,500
------------
DRUGS (4.4%)
American Home Products Corp. ........................................... 13,100 737,694
Bristol-Myers Squibb Co. ............................................... 7,800 1,043,737
Merck & Co., Inc. ...................................................... 4,700 694,131
Pharmacia & Upjohn, Inc. ............................................... 14,800 838,050
------------
3,313,612
------------
FOODS (2.0%)
ConAgra, Inc. .......................................................... 13,900 437,850
H.J. Heinz Co. ......................................................... 6,000 339,750
Nabisco Holdings Corp. ................................................. 5,800 240,700
Sara Lee Corp. ......................................................... 16,600 467,912
------------
1,486,212
------------
HOSPITAL SUPPLIES & SERVICES (1.5%)
Baxter International, Inc. ............................................. 9,100 585,244
Columbia HCA Healthcare Corp. 12,700 314,325
Healthsouth Corp.* ..................................................... 15,500 239,281
------------
1,138,850
------------
RETAIL--FOOD (0.5%)
Albertson's, Inc. ...................................................... 6,500 413,969
------------
SOAPS & TOILETRIES (0.6%)
Colgate Palmolive Co. .................................................. 4,200 390,074
Procter & Gamble Co. ................................................... 1,100 100,444
------------
490,518
------------
TOBACCO (1.3%)
Philip Morris Cos., Inc. ............................................... 18,400 984,400
------------
TOTAL CONSUMER NON-CYCLICALS........................................... 9,023,949
------------
CREDIT SENSITIVE (22.6%)
BANKS (8.2%)
Bank One Corp. ......................................................... 14,088 719,369
BankAmerica Corp. ...................................................... 19,200 1,154,400
BankBoston Corp. ....................................................... 3,700 144,069
Charter One Financial, Inc. ............................................ 8,710 241,703
Chase Manhattan Corp. .................................................. 1,100 74,869
Citigroup, Inc. ........................................................ 18,100 895,950
First Union Corp. ...................................................... 7,100 431,769
J.P. Morgan & Co. ...................................................... 3,300 346,706
KeyCorp ................................................................ 11,074 354,368
Mercantile Bancorp, Inc. ............................................... 4,300 198,337
PNC Bank Corp. ......................................................... 8,500 460,062
Synovus Financial Corp. ................................................ 8,216 200,265
Washington Mutual, Inc. ................................................ 10,300 393,331
Wells Fargo Co. ........................................................ 15,000 599,062
------------
6,214,260
------------
</TABLE>
30
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
FINANCIAL SERVICES (1.9%)
Fannie Mae ............................................................. 7,360 $ 544,640
Merrill Lynch & Co. .................................................... 5,300 353,775
Morgan Stanley Dean Witter &
Co. .................................................................. 7,200 511,200
------------
1,409,615
------------
INSURANCE (2.7%)
Allstate Corp. ......................................................... 9,300 359,213
American General Corp. ................................................. 7,800 608,400
CIGNA Corp. ............................................................ 6,400 494,800
Hartford Financial Services
Group, Inc. .......................................................... 4,514 247,706
Lincoln National Corp. ................................................. 4,500 368,156
------------
2,078,275
------------
REAL ESTATE (0.8%)
Equity Residential Property Trust 8,200 331,588
Starwood Hotels and Resorts
Worldwide, Inc. ...................................................... 12,000 272,250
------------
603,838
------------
UTILITY--ELECTRIC (2.9%)
Duke Energy Corp. ...................................................... 7,968 510,450
Edison International ................................................... 4,300 119,862
Entergy Corp. .......................................................... 11,600 361,050
OGE Energy Corp. ....................................................... 12,600 365,400
PP&L Resources, Inc. ................................................... 8,100 225,788
Potomac Electric Power Co. ............................................. 11,000 289,437
Western Resources, Inc. ................................................ 9,800 325,850
------------
2,197,837
------------
UTILITY--GAS (0.9%)
Enron Corp. ............................................................ 6,800 388,025
Sempra Energy .......................................................... 12,801 324,820
------------
712,845
------------
UTILITY--TELEPHONE (5.2%)
AT&T Corp. ............................................................. 10,100 760,025
Ameritech Corp. ........................................................ 11,300 716,138
Bell Atlantic Corp. .................................................... 8,400 445,200
GTE Corp. .............................................................. 15,300 994,500
SBC Communications, Inc. ............................................... 11,900 638,137
Sprint Corp. (Fon Group) ............................................... 5,200 437,450
------------
3,991,450
------------
TOTAL CREDIT SENSITIVE ................................................ 17,208,120
------------
DIVERSIFIED (0.6%)
MISCELLANEOUS (0.6%)
Minnesota Mining &
Manufacturing Co. .................................................... 6,200 440,975
------------
ENERGY (7.0%)
COAL & GAS PIPELINES (0.2%)
Consolidated Natural Gas Co. ........................................... 2,300 124,200
------------
OIL--DOMESTIC (3.7%)
Chevron Corp. .......................................................... 5,300 439,569
Exxon Corp. ............................................................ 12,113 885,763
Kerr-McGee Corp. ....................................................... 8,000 306,000
Mobil Corp. ............................................................ 8,900 775,413
Occidental Petroleum Corp. ............................................. 5,200 87,750
Tosco Corp. ............................................................ 11,200 289,800
------------
2,784,295
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
OIL--INTERNATIONAL (1.5%)
British Petroleum Co. plc (ADR) 7,600 $ 722,000
Conoco, Inc., Class A* ................................................. 7,000 146,125
Elf Acquitaine S.A. (ADR) .............................................. 5,600 317,100
------------
1,185,225
------------
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Halliburton Co. ........................................................ 12,300 364,387
------------
RAILROADS (1.1%)
Burlington Northern Santa Fe
Corp. ................................................................ 16,000 540,000
Norfolk Southern Corp. ................................................. 10,000 316,875
------------
856,875
------------
TOTAL ENERGY ......................................................... 5,314,982
------------
TECHNOLOGY (5.1%)
ELECTRONICS (1.0%)
Computer Associates
International, Inc. .................................................. 8,300 353,788
Texas Instruments, Inc. ................................................ 4,500 385,031
------------
738,819
------------
OFFICE EQUIPMENT (2.9%)
Apple Computer, Inc.* .................................................. 7,800 319,312
Compaq Computer Corp. .................................................. 15,700 658,419
International Business Machines
Corp. ................................................................ 4,200 775,950
Xerox Corp. ............................................................ 4,000 472,000
------------
2,225,681
------------
TELECOMMUNICATIONS (1.2%)
Alltel Corp. ........................................................... 6,800 406,725
Motorola, Inc. ......................................................... 8,600 525,138
------------
931,863
------------
TOTAL TECHNOLOGY ...................................................... 3,896,363
------------
TOTAL COMMON STOCKS: (59.8%)
(Cost $42,264,725).................................................... 45,455,358
------------
PREFERRED STOCKS:
BUSINESS SERVICES (0.0%)
ENVIRONMENTAL CONTROL (0.0%)
TCR Holding Corp.* ..................................................... 10 1
------------
CREDIT SENSITIVE (0.4%)
FINANCIAL SERVICES (0.4%)
Centaur Funding Corp.
9.08%, 4/21/20* (SS.) + .............................................. 85 87,307
K-Mart Financing ....................................................... 2,700 156,431
Webster Capital Corp., Series A ........................................ 40 42,151
------------
TOTAL CREDIT SENSITIVE ................................................ 285,889
------------
TOTAL PREFERRED STOCKS: (0.4%)
(Cost $273,505)........................................................ 285,890
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
CONVERTIBLE BONDS
CONSUMER NON-CYCLICALS (0.1%)
HOSPITAL SUPPLIES & SERVICES (0.1%)
Healthsouth Corp. 3.25%, 4/1/03..... $100,000 85,500
------
</TABLE>
31
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- --------------
<S> <C> <C>
TECHNOLOGY (0.2%)
OFFICE EQUIPMENT (0.2%)
Western Digital Corp.
(Zero Coupon) 2/18/18 (SS.) +....... $ 50,000 $ 15,188
(Zero Coupon) 2/18/18 .............. 300,000 91,125
-----------
TOTAL TECHNOLOGY ................... 106,313
-----------
TOTAL CONVERTIBLE BONDS (0.3%)
(Cost $166,290)..................... 191,813
-----------
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.7%)
CHEMICALS (0.7%)
Arco Chemical Co.
9.80%, 2/1/20 ..................... 45,000 45,395
IMC Global, Inc.
7.40%, 11/1/02 .................... 35,000 35,401
Monsanto Co.
6.60%, 12/1/28 (SS.) +............. 430,000 430,601
Solutia, Inc. 6.72%, 10/15/37........ 55,000 56,444
-----------
TOTAL BASIC MATERIALS .............. 567,841
-----------
BUSINESS SERVICES (0.5%)
ENVIRONMENTAL CONTROL (0.2%)
Waste Management
Technologies, Inc.
7.70%, 10/1/02 (Step
Bond) ............................. 50,000 53,020
U.S. Filter Corp.
6.50%, 5/15/03 (SS.)+ ............. 75,000 72,975
-----------
125,995
-----------
PRINTING, PUBLISHING,
BROADCASTING (0.3%)
News America Holdings,
Inc. 7.75%, 12/1/45 ............... 145,000 154,507
Viacom, Inc. 7.75%, 6/1/05 .......... 95,000 103,864
-----------
258,371
-----------
TOTAL BUSINESS SERVICES ............ 384,366
-----------
CAPITAL GOODS (0.3%)
AEROSPACE (0.3%)
Boeing Co. 6.625%, 2/15/38........... 250,000 254,366
-----------
CONSUMER CYCLICALS (1.2%)
AIRLINES (0.3%)
Continental Airlines, Inc.,
Series 97 Class 4C
6.80%, 7/2/07 ..................... 60,000 59,921
Series 98 Class 1C
6.541%, 9/15/09 ................... 40,000 39,047
Series 98 Class 2A
6.32%, 11/1/08 .................... 110,000 110,767
-----------
209,735
-----------
AUTOS & TRUCKS (0.1%)
DaimlerChrysler AG,
Class B 7.45%, 2/1/97 ............. 40,000 46,171
Ford Motor Co.
6.625%, 10/1/28 ................... 55,000 56,775
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- --------------
<S> <C> <C>
Ford Motor Credit Co.
5.125%, 10/15/01 ................. $ 10,000 $ 9,931
-----------
112,877
-----------
HOUSEHOLD FURNITURE,
APPLIANCES (0.2%)
Newell Co. 6.35%, 7/15/08 .......... 125,000 130,253
-----------
LEISURE RELATED (0.5%)
Time Warner, Inc.
8.375%, 7/15/33 .................. 280,000 347,201
-----------
RETAIL--GENERAL (0.1%)
Sears Roebuck Acceptance
Corp. 6.50%, 12/1/28 ............. 90,000 88,748
-----------
TOTAL CONSUMER CYCLICALS .......... 888,814
-----------
CONSUMER NON-CYCLICALS (0.6%)
BEVERAGES (0.2%)
Diageo plc 6.125%, 8/15/05 ......... 140,000 145,490
-----------
CONTAINERS (0.1%)
Ball Corp. Series
7.75%, 8/1/06 (SS.)+.............. 100,000 105,000
-----------
HOSPITAL SUPPLIES & SERVICES (0.0%)
Manor Care, Inc.
7.50%, 6/15/06 ................... 10,000 10,546
-----------
TOBACCO (0.3%)
Philip Morris Cos., Inc.
7.25%, 1/15/03 .................... 190,000 200,534
7.125%, 10/1/04 ................... 10,000 10,669
-----------
211,203
-----------
TOTAL CONSUMER
NON-CYCLICALS ................... 472,239
-----------
CREDIT SENSITIVE (26.3%)
BANKS (0.2%)
FCB/NC Capital Trust I
8.05%, 3/1/28 (SS.) + ............ 40,000 41,000
Merita Bank Ltd.
6.50%, 1/15/06 ................... 65,000 66,728
Nationsbank Corp.
6.50%, 8/15/03 ................... 65,000 67,342
-----------
175,070
-----------
COLLATERALIZED MORTGAGE
OBLIGATIONS (1.3%)
Commercial Mortgage
Acceptance Corp.
Series 97-ML1, Class A2
6.53%, 6/15/07 ................... 20,000 20,813
Series 97-ML1, Class A3
6.57%, 12/15/30 .................. 76,000 79,572
Series 98-C2, Class A2
6.03%, 3/15/08 ................... 150,000 148,906
Chase Mortgage Finance
Corp.,
Series 98-S2, Class A14
6.75%, 7/25/28 ................... 30,000 30,458
First Union-Lehman Brothers
Series 98-C2 Class A2
6.56%, 11/18/08 .................. 60,000 62,131
Series 98-C2, Class D
6.778%, 3/18/13 .................. 25,000 23,568
</TABLE>
32
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------------- ----------------
<S> <C> <C> <C>
General Motors Acceptance
Corp.
Series 98-C1, Class E
7.153%, 5/15/30 .................... $ 50,000 $ 49,418
Series 98-C2, Class A2
6.42%, 5/15/31 ..................... 163,635 169,625
General Electric Capital
Mortgage
Series 98-11, Class 2A4
6.75%, 6/25/28 ..................... 50,000 51,215
Goldman Sachs Mortgage
Securities Corp.,
Series 98, GL2, ClassA2
6.562%, 4/13/31 .................... 20,000 20,756
Series 98, GL2, Class D
7.191%, 4/13/31 .................... 25,000 24,320
Green Tree Financial Corp.
Series 98-2, Class A5 6.24%,
3/18/28 ............................ 50,000 50,516
Green Tree Recreational
Equipment
Series 98-A, Class A1C
6.18%, 6/15/19 ..................... 39,191 39,926
Lehman Manufactured
Housing Trust
Series 98-1 0.82%, 7/15/28 .......... 250,000 9,980
Mashantucket Pequot Tribe
6.57%, 9/1/13 (SS.)+ ................ 90,000 89,663
Morgan Stanley Capital Corp.
Series 96-WF1, Class A2
7.2275%, 1/16/06 ................... 20,000 21,187
Residential Asset
Securitization Trust
Series 98, Class A12 A14
8.00%, 11/25/28 .................... 75,000 79,215
----------
971,269
----------
FINANCIAL SERVICES (2.6%)
AFC Capital Trust I, Series B
8.207%, 2/3/27 ..................... 25,000 28,014
Associates Corp. of North
America 6.25%, 11/1/08 ............. 175,000 181,216
Avalon Properties, Inc.
6.625%, 1/15/05 .................... 30,000 29,431
CIT Group Holdings
5.50%, 10/15/01 .................... 95,000 94,550
Commercial Credit Corp.
7.75%, 3/1/05 ...................... 25,000 27,567
ERP Operating LP
6.63%, 4/13/05 ..................... 100,000 98,676
Finova Capital Corp.
6.25%, 11/01/02 ..................... 90,000 90,799
7.40%, 6/1/07 ....................... 65,000 68,629
Fleet Financial Group, Inc.
6.875%, 1/15/28 .................... 25,000 26,198
Ford Motor Credit Co.
6.00%, 1/14/03 ..................... 36,000 36,457
Household Financial Co.
6.50%, 11/15/08 .................... 50,000 52,007
Household Netherlands BV
6.20%, 12/1/03 ..................... 515,000 518,849
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------------- ----------------
<S> <C> <C> <C>
KN Cap Trust III
7.63%, 4/15/28 ..................... $ 55,000 $ 51,819
Lehman Brothers Holdings,
Inc. 6.50%, 10/1/02 ................ 105,000 105,098
Merrill Lynch & Co., Inc.,
Series B 6.13%, 4/7/03 ............. 40,000 40,656
Newcourt Credit Corp.
7.125%, 12/17/03 (SS.) + ........... 70,000 69,346
Norwest Corp., Series J
6.75%, 12/15/27 .................... 40,000 39,767
Paine Webber Group, Inc.
6.55%, 4/15/05 ...................... 60,000 60,058
Series C 6.52%, 4/6/08 .............. 60,000 59,920
Provident Cos., Inc.
7.405%, 3/15/38 .................... 75,000 76,791
Salomon, Inc. 6.75%, 2/15/03 ......... 45,000 46,388
The Money Store, Inc.
8.05%, 4/15/02 ..................... 35,000 37,410
Toyota Motor Credit Co.
5.625%, 11/13/03 ................... 75,000 75,760
Wilmington Trust Corp.
6.625%, 5/1/08 ..................... 90,000 93,229
----------
2,008,635
----------
FOREIGN GOVERNMENT (0.6%)
Ontario Province
5.50%, 10/1/08 ..................... 215,000 216,548
Province of Quebec
7.50%, 7/15/02 ..................... 50,000 53,138
German Unity Bond
8.00%, 1/21/02 ...................... DEM 70,000 47,533
Republic of Germany
Series 98 5.625%, 1/4/28 ............ 230,000 155,968
----------
473,187
----------
INSURANCE (0.6%)
UNUM Corp.
6.75%, 12/15/28 .................... $ 265,000 265,000
American General
Finance Corp.
5.70%, 2/7/01 ....................... 50,000 50,225
8.125%, 3/15/46 (SS.)+............... 70,000 80,801
Hartford Life, Inc.
7.65%, 6/15/27 ..................... 15,000 16,684
Travelers Property &
Casualty, Inc.
6.75%, 4/15/01 ..................... 50,000 51,203
----------
463,913
----------
REAL ESTATE (0.3%)
Avalon Properties, Inc.
6.875%, 12/15/07 ................... 25,000 24,680
EOP Operating L.P.
6.75%, 2/15/08 ..................... 145,000 141,880
Omega Healthcare Investors,
Inc. 6.95%, 8/1/07 ................. 50,000 44,763
----------
211,323
----------
U.S. GOVERNMENT (10.9%)
U.S. Treasury Note
5.50%, 5/31/00 ...................... 740,000 748,788
4.625%, 9/30/00 ..................... 460,000 459,281
6.25%, 8/31/02 ...................... 620,000 651,775
</TABLE>
33
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------------- ----------------
<S> <C> <C>
5.875%, 9/30/02 ..................... $ 10,000 $ 10,400
5.625%, 12/31/02 .................... 490,000 506,231
5.50%, 3/31/03 ...................... 1,120,000 1,153,951
5.50%, 5/31/03 ...................... 1,690,000 1,744,398
5.25%, 8/15/03 ...................... 265,000 271,708
5.75%, 8/15/03 ...................... 60,000 62,644
4.25%, 11/15/03 ..................... 895,000 883,535
7.00%, 7/15/06 ...................... 320,000 364,500
6.125%, 11/15/27 .................... 630,000 705,797
5.50%, 8/15/28 ...................... 335,000 351,227
5.25%, 11/15/28 ..................... 375,000 383,906
----------
8,298,141
----------
U.S. GOVERNMENT AGENCIES (8.9%)
Federal National Mortgage
Association
7.00%, 2/1/12 ....................... 73,138 74,783
6.00%, 6/1/12 ....................... 262,600 263,256
6.50%, 4/1/13 ....................... 406,575 412,547
6.50%, 7/1/13 ....................... 28,606 29,026
7.00%, 10/1/13 ...................... 404,517 413,619
6.00%, 10/1/13 ...................... 169,664 170,088
6.00%, 12/1/13 ...................... 479,750 480,949
9.00%, 8/1/26 ....................... 198,528 210,067
7.00%, 7/1/28 ....................... 293 299
6.50%, 8/1/28 ....................... 440,292 443,319
6.50%, 9/1/28 ....................... 155,017 156,083
6.50%, 10/1/28 ...................... 77,450 77,982
6.50%, 11/1/28 ...................... 158,802 159,894
6.00%, 1/15/29 TBA .................. 935,000 922,723
Government National
Mortgage Association
8.00%, 7/15/25 ...................... 114,333 118,843
7.00%, 9/15/25 ...................... 57,203 58,618
7.00%, 12/15/25 ..................... 57,652 59,078
6.50%, 3/15/26 ...................... 150,731 152,400
8.00%, 10/15/26 ..................... 129,400 134,490
7.00%, 11/15/26 ..................... 30,149 30,874
7.00%, 7/15/27 ...................... 48,197 49,368
7.00%, 9/15/27 ...................... 23,900 24,481
7.00%, 11/15/27 ..................... 514,035 526,524
7.00%, 2/15/28 ...................... 22,760 23,315
7.00%, 3/15/28 ...................... 398,950 408,549
7.00%, 4/15/28 ...................... 79,201 81,106
7.00%, 5/15/28 ...................... 141,505 144,957
7.00%, 11/15/28 ..................... 545,551 558,677
6.50%, 12/15/28 ..................... 505,000 510,525
8.00%, 1/15/29 TBA .................. 90,000 92,446
----------
6,788,886
----------
UTILITY--ELECTRIC (0.5%)
Arizona Public Service Co.
6.75%, 11/15/06 .................... 50,000 53,032
Baltimore Gas & Electric Co.
6.90%, 2/1/05 ...................... 50,000 52,874
CMS Energy Corp.
7.00%, 1/15/05 ..................... 25,000 24,786
CalEnergy, Inc.
7.63%, 10/15/07 .................... 60,000 64,228
Connecticut Light & Power
Co., Series C 7.75%, 6/1/02......... 20,000 20,659
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------------- ----------------
<S> <C> <C>
Public Service Electric & Gas
Co. 8.875%, 6/1/03 ................. $ 50,000 $ 56,315
Texas Utilities Co.
7.46%, 1/1/15 ...................... 40,000 44,027
Transamerica Energy 0.00%,
6/15/02 (Step Bond) ................ 115,000 32,200
----------
348,121
----------
UTILITY--GAS (0.3%)
Enron Corp. 6.40%, 7/15/06 ........... 40,000 40,418
Express Pipeline, Inc.
7.39%, 12/31/17 (SS.)+ ............. 20,000 19,559
KN Energy, Inc. 6.80%, 3/1/08......... 45,000 45,373
Louis Dreyfus Natural Gas
Corp. 6.875%, 12/1/07 .............. 85,000 80,796
----------
186,146
----------
UTILITY--TELEPHONE (0.1%)
U.S. West Communications
5.625%, 11/15/08 ................... 40,000 40,473
----------
TOTAL CREDIT SENSITIVE .............. 19,965,164
----------
DIVERSIFIED (0.1%)
MISCELLANEOUS (0.1%)
Tyco International Group
6.375%, 6/15/05 .................... 90,000 92,114
----------
ENERGY (1.4%)
COAL & GAS PIPELINES (0.1%)
Columbia Gas Systems, Inc.
6.61%, 11/28/02 .................... 65,000 67,352
----------
OIL--DOMESTIC (0.1%)
Coastal Corp.
6.50%, 6/1/08 ....................... 25,000 25,438
6.95%, 6/2/28 ....................... 75,000 75,097
----------
100,535
----------
OIL--INTERNATIONAL (0.3%)
Petro-Canada 7.00%, 11/15/28.......... 150,000 147,918
Statoil 6.50%, 12/1/28 (SS.) +........ 75,000 73,426
----------
221,344
----------
OIL--SUPPLIES & CONSTRUCTION (0.4%)
Petroleum Geo-Services
7.50%, 3/31/07 ..................... 245,000 261,038
----------
RAILROADS (0.5%)
Burlington Northern Santa Fe
Corp. 6.875%, 12/1/27 .............. 100,000 104,174
CSX Corp. 7.95%, 5/1/27 .............. 260,000 300,593
----------
404,767
----------
TOTAL ENERGY ....................... 1,055,036
----------
TECHNOLOGY (1.4%)
ELECTRONICS (0.1%)
Micron Technology, Inc.
7.00%, 7/1/04 ...................... 90,000 96,638
----------
OFFICE EQUIPMENT (0.2%)
Dell Computer Corp.
7.10%, 4/15/28 ..................... 155,000 157,049
----------
TELECOMMUNICATIONS (1.1%)
AT&T Capital Corp.
6.60%, 5/15/05 ..................... 55,000 52,693
</TABLE>
34
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------ --------------
<S> <C> <C> <C>
AirTouch Communications,
Inc. 6.65%, 5/1/08 ............... $ 30,000 $ 31,876
Colt Telecom Group plc
8.875%, 11/30/07 .................. GBP 50,000 30,903
7.625%, 7/31/08 ................... 75,000 44,442
LCI International, Inc.
7.25%, 6/15/07 ................... $ 80,000 82,275
Sprint Capital Corp.
5.70%, 11/15/03 ................... 75,000 75,066
6.125%, 11/15/08 .................. 20,000 20,445
6.875%, 11/15/28 .................. 90,000 93,757
TCI Communications, Inc.
8.65%, 9/15/04 .................... 110,000 126,506
7.125%, 2/15/28 ................... 110,000 120,353
WorldCom, Inc.
6.40%, 8/15/05 ................... 100,000 103,932
-----------
782,248
-----------
TOTAL TECHNOLOGY .................. 1,035,935
-----------
TOTAL LONG-TERM DEBT
SECURITIES: (32.5%)
(Cost $24,414,640)................. 24,715,875
-----------
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENTS (8.3%)
Merrill Lynch 4.80%, dated
12/31/98, due 1/4/99, to be
repurchased at $6,327,373,
collateralized by $3,970,000
of U. S. Treasury Bonds,
10.625% due 8/15/15, valued
at $6,461,175 (Cost
$6,324,000)....................... 6,324,000 6,324,000
-----------
TOTAL INVESTMENTS (101.3%)
(Cost $73,443,161).......... ...... 76,972,936
OTHER ASSETS
LESS LIABILITIES (-1.3%) ... ...... (995,751)
-----------
NET ASSETS (100%) .................. $75,977,185
===========
</TABLE>
- ----------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998 these securities amounted to $1,084,866 or
1.43% of net assets.
(SS.)Illiquid security: is not actively traded.
Glossary:
ADR--American Depositary Receipt
TBA--Security is subject to delayed delivery
DEM--German Mark
GBP--British Pound
35
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
German Mark, expiring 2/17/99 ......... 461 $275,816 $ 277,036 $ 1,220
Korean Won, expiring 3/11/99 .......... 78,465 46,385 64,993 18,608
FOREIGN CURRENCY SALE CONTRACTS
German Mark, expiring 2/17/99 ......... 899 538,100 540,495 (2,395)
Korean Won, expiring 3/11/99 .......... 78,465 47,058 64,993 (17,935)
---------
$ (502)
=========
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $64,576,149
U.S. Government securities ............................. 39,574,028
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 31,910,593
U.S. Government securities ............................. 29,345,912
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 5,329,299
Aggregate gross unrealized depreciation .......... (1,956,220)
------------
Net unrealized appreciation ...................... $ 3,373,079
============
Federal income tax cost of investments ........... $ 73,599,319
============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$7,502,455, which was secured by collateral valued
at $7,601,915 of which $2,688,640 was in the form of U.S. Government
securities.
See Notes to Financial Statements.
36
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (3.0%)
CHEMICALS (1.9%)
E.I. Du Pont de Nemours & Co. 98,806 $ 5,242,893
Eastman Chemical Co. ................................................... 51,151 2,289,007
Witco Corp. ............................................................ 80,325 1,280,180
------------
8,812,080
------------
PAPER (1.1%)
Boise Cascade Corp. .................................................... 111,890 3,468,590
Kimberly Clark Corp. ................................................... 32,485 1,770,433
------------
5,239,023
------------
TOTAL BASIC MATERIALS ................................................. 14,051,103
------------
BUSINESS SERVICES (3.2%)
ENVIRONMENTAL CONTROL (0.6%)
Waste Management, Inc. ................................................. 56,630 2,640,374
------------
PRINTING, PUBLISHING, BROADCASTING (2.3%)
McGraw Hill Cos., Inc. ................................................. 24,843 2,530,881
MediaOne Group, Inc.* .................................................. 90,160 4,237,520
Times Mirror Co., Class A .............................................. 65,975 3,694,600
------------
10,463,001
------------
PROFESSIONAL SERVICES (0.3%)
NCR Corp.* ............................................................. 3,400 141,950
Pitney Bowes, Inc. ..................................................... 21,670 1,431,574
------------
1,573,524
------------
TOTAL BUSINESS SERVICES ............................................... 14,676,899
------------
CAPITAL GOODS (4.0%)
AEROSPACE (0.7%)
Raytheon Co., Class A .................................................. 50,555 2,613,062
Raytheon Co., Class B .................................................. 15,800 841,350
------------
3,454,412
------------
ELECTRICAL EQUIPMENT (2.6%)
Emerson Electric Co. ................................................... 57,595 3,484,497
General Electric Co. ................................................... 70,100 7,154,581
Rockwell International Corp. ........................................... 28,730 1,395,201
------------
12,034,279
------------
MACHINERY (0.7%)
Deere & Co. ............................................................ 94,620 3,134,287
------------
TOTAL CAPITAL GOODS ................................................... 18,622,978
------------
CONSUMER CYCLICALS (9.0%)
AIRLINES (0.8%)
Southwest Airlines Co. ................................................. 155,540 3,489,929
------------
AUTO RELATED (0.7%)
Dana Corp. ............................................................. 23,407 956,761
Goodyear Tire & Rubber Co. ............................................. 46,918 2,366,427
------------
3,323,188
------------
AUTOS & TRUCKS (2.2%)
Ford Motor Co. ......................................................... 89,335 5,242,848
General Motors Corp. ................................................... 69,300 4,959,281
------------
10,202,129
------------
FOOD SERVICES, LODGING (0.7%)
McDonald's Corp. ....................................................... 43,430 3,327,824
------------
PHOTO & OPTICAL (0.8%)
Eastman Kodak Co. ...................................................... 51,938 3,739,536
------------
RETAIL--GENERAL (3.8%)
Federated Department Stores,
Inc.* ................................................................ 54,100 2,356,731
Hasbro, Inc. ........................................................... 110,670 3,997,954
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
J.C. Penny Co. ......................................................... 56,065 $ 2,628,047
K-Mart Corp.* .......................................................... 211,540 3,239,206
Sears Roebuck & Co. .................................................... 79,805 3,391,712
Toys-R-Us, Inc.* ....................................................... 118,065 1,992,347
------------
17,605,997
------------
TOTAL CONSUMER CYCLICALS .............................................. 41,688,603
------------
CONSUMER NON-CYCLICALS (18.6%)
BEVERAGES (1.9%)
Anheuser-Busch Cos., Inc. .............................................. 71,290 4,678,406
Whitman Corp. .......................................................... 157,687 4,001,308
------------
8,679,714
------------
CONTAINERS (0.9%)
Owens Illinois, Inc.* .................................................. 140,060 4,289,338
------------
DRUGS (8.3%)
American Home Products Corp. ........................................... 128,510 7,236,719
Bristol-Myers Squibb Co. ............................................... 55,160 7,381,098
Johnson & Johnson ...................................................... 49,895 4,184,943
Merck & Co., Inc. ...................................................... 60,830 8,983,831
Pharmacia & Upjohn, Inc. ............................................... 181,154 10,257,845
------------
38,044,436
------------
FOODS (3.0%)
General Mills, Inc. .................................................... 41,755 3,246,451
H.J. Heinz Co. ......................................................... 59,070 3,344,839
Nabisco Holdings Corp., Class A 28,500 1,182,750
Quaker Oats Co. ........................................................ 53,085 3,158,557
Sara Lee Corp. ......................................................... 104,452 2,944,241
------------
13,876,838
------------
HOSPITAL SUPPLIES & SERVICES (1.2%)
Baxter International, Inc. ............................................. 87,399 5,620,848
------------
SOAPS & TOILETRIES (1.5%)
Clorox Co. ............................................................. 34,495 4,029,447
Colgate Palmolive Co. .................................................. 30,265 2,810,862
------------
6,840,309
------------
TOBACCO (1.8%)
Philip Morris Cos., Inc. ............................................... 155,710 8,330,485
------------
TOTAL CONSUMER NON-CYCLICALS 85,681,968
------------
CREDIT SENSITIVE (34.5%)
BANKS (14.0%)
Bank One Corp. ......................................................... 119,514 6,102,684
BankAmerica Corp. ...................................................... 149,117 8,965,660
BankBoston Corp. ....................................................... 109,680 4,270,665
Chase Manhattan Corp. .................................................. 72,360 4,925,002
Citigroup, Inc. ........................................................ 180,855 8,952,322
First Union Corp. ...................................................... 48,225 2,932,683
Fleet Financial Group, Inc. ............................................ 76,990 3,440,491
J.P. Morgan & Co. ...................................................... 48,123 5,055,923
Mercantile Bancorp, Inc. ............................................... 57,173 2,637,105
National City Corp. .................................................... 48,535 3,518,787
PNC Bank Corp. ......................................................... 67,626 3,660,257
Summit Bancorp ......................................................... 31,985 1,397,345
Washington Mutual, Inc. ................................................ 86,535 3,304,555
Wells Fargo Co. ........................................................ 130,300 5,203,856
------------
64,367,335
------------
FINANCIAL SERVICES (3.5%)
American Express Co. ................................................... 26,900 2,750,525
Fannie Mae ............................................................. 71,690 5,305,060
Lehman Brothers Holdings, Inc. ......................................... 102,060 4,497,019
Merrill Lynch & Co. .................................................... 55,135 3,680,261
------------
16,232,865
------------
</TABLE>
37
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ ---------------
<S> <C> <C>
INSURANCE (4.5%)
Aetna, Inc. ....................... 32,355 $ 2,543,912
Allstate Corp. .................... 88,390 3,414,064
American General Corp. ............ 77,389 6,036,342
Aon Corp. ......................... 53,386 2,956,250
CIGNA Corp. ....................... 73,313 5,668,011
------------
20,618,579
------------
UTILITY--ELECTRIC (4.7%)
Consolidated Edison, Inc. ......... 78,290 4,139,584
Dominion Resources, Inc. .......... 73,530 3,437,527
Duke Energy Corp. ................. 57,330 3,672,703
Edison International .............. 111,460 3,106,947
Entergy Corp. ..................... 124,805 3,884,556
Texas Utilities Co. ............... 75,475 3,523,739
------------
21,765,056
------------
UTILITY--GAS (0.3%)
Enron Corp. ....................... 20,575 1,174,061
------------
UTILITY--TELEPHONE (7.5%)
Ameritech Corp. ................... 39,875 2,527,078
AT&T Corp. ........................ 112,983 8,501,971
GTE Corp. ......................... 91,450 5,944,250
SBC Communications, Inc. .......... 128,300 6,880,088
Sprint Corp. (Fon Group) .......... 51,587 4,339,756
U.S. WEST, Inc. ................... 101,611 6,566,611
------------
34,759,754
------------
TOTAL CREDIT SENSITIVE ........... 158,917,650
------------
DIVERSIFIED (0.9%)
MISCELLANEOUS (0.9%)
Minnesota Mining &
Manufacturing Co. ............... 56,000 3,983,000
------------
ENERGY (9.9%)
OIL--DOMESTIC (7.3%)
Atlantic Richfield Co. ............ 85,892 5,604,453
Chevron Corp. ..................... 66,170 5,487,974
Exxon Corp. ....................... 92,386 6,755,726
Kerr-McGee Corp. .................. 78,570 3,005,303
Mobil Corp. ....................... 52,764 4,597,063
Sonat, Inc. ....................... 110,000 2,976,875
Texaco, Inc. ...................... 58,710 3,104,291
Tosco Corp. ....................... 84,220 2,179,193
------------
33,710,878
------------
OIL--INTERNATIONAL (1.4%)
British Petroleum Co. plc (ADR) 44,568 4,233,960
Conoco, Inc., Class A* ............ 94,400 1,970,600
------------
6,204,560
------------
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Halliburton Co. ................... 82,300 2,438,138
------------
RAILROADS (0.7%)
Burlington Northern Santa Fe
Corp. ........................... 95,423 3,220,526
------------
TOTAL ENERGY ..................... 45,574,102
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------ ---------------
<S> <C> <C>
TECHNOLOGY (10.3%)
ELECTRONICS (3.2%)
Intel Corp. ....................... 51,825 $ 6,144,502
Sun Microsystems, Inc.* ........... 15,080 1,291,225
Texas Instruments, Inc. ........... 86,710 7,419,124
------------
14,854,851
------------
OFFICE EQUIPMENT (5.2%)
Compaq Computer Corp. ............. 144,340 6,053,259
International Business Machines
Corp. ........................... 47,015 8,686,021
Xerox Corp. ....................... 79,347 9,362,946
------------
24,102,226
------------
TELECOMMUNICATIONS (1.9%)
Alltel Corp. ...................... 55,920 3,344,715
Motorola, Inc. .................... 83,925 5,124,670
------------
8,469,385
------------
TOTAL TECHNOLOGY ................. 47,426,462
------------
TOTAL COMMON STOCKS (93.4%)
(Cost $403,546,784) ............. 430,622,765
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
--------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (1.7%)
Federal Home Loan Bank
(Discount Note), 1/14/99 ............ $ 5,000,000 4,987,275
Federal Home Loan Mortgage
Corporation
(Discount Note), 2/25/99 ............ 3,000,000 2,976,946
---------
TOTAL U.S. GOVERNMENT
AGENCIES .......................... 7,964,221
---------
REPURCHASE AGREEMENTS (4.3%)
Merrill Lynch 4.80%, dated
12/31/98, due 1/4/99, to be
repurchased at $19,607,452
collateralized by $19,155,000 of
U.S. Treasury Notes, 5.50%
due 3/31/03, valued at
$20,004,904 ........................ 19,597,000 19,597,000
----------
TOTAL SHORT-TERM DEBT SECURITIES (6.0%)
(Cost/Amortized Cost
$27,560,004) ....................... 27,561,221
----------
TOTAL INVESTMENTS (99.4%)
(Cost/Amortized Cost
$431,106,788) ...................... 458,183,986
OTHER ASSETS
LESS LIABILITIES (0.6%) ............. 2,560,275
-----------
NET ASSETS (100%) .................... $460,744,261
============
</TABLE>
- ----------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
38
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $471,938,662
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 210,563,970
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 48,355,338
Aggregate gross unrealized depreciation .......... (22,103,632)
-------------
Net unrealized appreciation ...................... $ 26,251,706
=============
Federal income tax cost of investments ........... $ 431,932,280
=============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$14,185,093, which was secured by cash collateral of $14,127,780.
The value of the collateral was sufficient at the time loan agreements were
entered into. As a result of an increase in the market value of the loaned
securities on the last business day for the year, the Portfolio was furnished
with additional collateral the following business day.
See Notes to Financial Statements.
39
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
COMMON STOCKS AND RIGHTS:
AUSTRALIA & NEW ZEALAND(1.1%)
AUSTRALIA (1.1%)
Cable & Wireless Optus Ltd.* ....... 81,100 $ 170,450
Coles Meyer Ltd. ................... 89,600 469,415
News Corp., Ltd. ................... 78,600 519,187
News Corp., Ltd. (ADR) ............. 15,900 420,356
------------
TOTAL AUSTRALIA &
NEW ZEALAND ................... 1,579,408
------------
CANADA (3.8%)
BCE Mobile Communications,
Inc.* ............................ 23,250 627,765
BCE, Inc. .......................... 59,516 2,240,060
Bank of Nova Scotia ................ 75,269 1,652,789
Bombardier, Inc., Class B .......... 58,800 841,640
National Bank of Canada ............ 305 4,914
Northern Telecom Ltd. .............. 2 105
Royal Bank of Canada ............... 2,700 134,473
------------
TOTAL CANADA ..................... 5,501,746
------------
JAPAN (9.7%)
Canon, Inc. ........................ 9,000 192,601
Chubu Electric Power Co., Inc. ..... 17,300 349,526
Eisai Co., Ltd. .................... 13,000 253,434
Fujitsu Ltd. ....................... 90,600 1,208,268
Honda Motor Co., Ltd. .............. 15,000 493,132
Kita Kyushu Coca-Cola Bottling ..... 1,100 34,506
Mabuchi Motor Co., Ltd. ............ 8,600 659,193
Matsushita-Kotobuki Electronics
Industries Ltd. .................. 26,000 562,162
Mitsumi Electric Co., Ltd. ......... 31,300 662,889
Murata Manufacturing Co., Ltd. ..... 3,000 124,679
Nikko Securities Co., Ltd. ......... 449,000 1,253,301
Nippon Telegraph & Telephone
Corp. ............................ 188 1,452,689
Nippon Television Network
Corp. ............................ 2,180 643,279
Promise Co., Ltd. .................. 10,800 562,729
Ricoh Co., Ltd. .................... 43,000 397,040
Sankyo Co. ......................... 58,000 1,269,473
Shin-Etsu Chemical Co. ............. 6,000 144,617
Shiseido Co., Ltd. ................. 19,000 244,466
Sony Corp. ......................... 11,300 824,094
TDK Corp. .......................... 6,000 549,224
Tokyo Electric Power Co. ........... 18,800 464,794
Yamanouchi Pharmaceutical Co.,
Ltd. ............................. 50,000 1,612,760
------------
TOTAL JAPAN ...................... 13,958,856
------------
LATIN AMERICA (2.9%)
BRAZIL (0.8%)
CEMIG (ADR) ........................ 34,800 662,474
Telecom de Sao Paulo S.A. .......... 91,645 12,492
Telesp Celular S.A.* ............... 37,900,000 279,172
Telesp Celular S.A., Class B* ...... 490,000 21,535
Telesp S.A.* ....................... 9,000,000 204,842
------------
1,180,515
------------
MEXICO (2.1%)
Coca-Cola Femsa S.A. (ADR) ......... 50,300 666,475
Grupo Televisa S.A. (GDR)* ......... 19,900 491,281
Telmex, Class L (ADR) .............. 21,732 1,058,077
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Fomento Economico S.A. ............. 273,168 $ 741,014
------------
2,956,847
------------
TOTAL LATIN AMERICA .............. 4,137,362
------------
OTHER EUROPEAN COUNTRIES(47.9%)
FRANCE (13.4%)
Assurances Generales de France 257 15,348
Banque Nationale de Paris .......... 28,938 2,382,551
Bouygues S.A. ...................... 7,552 1,556,471
Credit Commercial de France ........ 5,328 494,719
Elf Acquitaine S.A. ................ 7,687 888,416
France Telecom S.A. ................ 6,000 476,608
Groupe Danone ...................... 2,317 663,244
ISIS ............................... 510 36,406
Lafarge S.A. ....................... 13,913 1,321,729
Michelin, Class B (Registered) ..... 23,779 950,819
STMicroelectronics N.V. (N.Y.
Shares) .......................... 28,841 2,251,401
Scor ............................... 24,544 1,622,508
Societe Generale Paris ............. 8,444 1,367,174
Television Francaise ............... 7,838 1,395,261
Total S.A., Class B ................ 7,202 729,284
Vivendi ............................ 12,188 3,161,750
------------
19,313,689
------------
GERMANY (6.7%)
Bayerische Motoren Werke
(BMW) AG (New)* .................. 278 213,192
Bayerische Motoren Werke
(BMW) AG ......................... 966 758,193
Deutsche Telekom AG ................ 31,500 1,034,878
Hoechst AG ......................... 45,600 1,885,292
Mannesmann AG ...................... 27,513 3,182,197
Veba AG ............................ 18,250 1,080,873
Volkswagen AG ...................... 17,780 1,438,190
------------
9,592,815
------------
GREECE (0.6%)
Hellenic Telecommunications
Organization S.A. (ADR)* ......... 12,600 166,950
Hellenic Telecommunications
Organization S.A. ................ 25,551 680,131
------------
847,081
------------
IRELAND (3.0%)
Allied Irish Banks plc ............. 83,486 1,493,748
Bank of Ireland .................... 91,998 2,045,576
CRH plc ............................ 46,401 800,541
------------
4,339,865
------------
ITALY (2.9%)
Banca Popolare di Brescia .......... 11,500 280,285
Telecom Italia S.p.A. .............. 426,738 3,638,951
Unione Immobiliare S.p.A* .......... 357,400 186,319
------------
4,105,555
------------
NETHERLANDS (8.9%)
Akzo Nobel N.V. .................... 51,029 2,323,329
ASM Lithography Holding N.V......... 7,000 213,500
Benckiser N.V., Class B ............ 1,330 87,113
Equant N.V.* ....................... 2,840 197,598
Gucci Group N.V. ................... 6,064 294,862
ING Groep N.V. ..................... 63,324 3,861,014
</TABLE>
40
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Koninklijke Ahold N.V. ............... 55,045 $ 2,034,253
Koninklijke KPN N.V. ................. 25,072 1,255,002
Koninklijke Philips Electronics
N.V. ............................... 11,994 804,752
Laurus N.V. .......................... 9,606 242,465
TNT Post Group N.V. .................. 21,917 706,096
Vedior N.V. .......................... 19,113 376,581
Vendex N.V. .......................... 17,576 426,788
-----------
12,823,353
-----------
POLAND (0.1%)
Bank Handlowy (GDS) + (SS.)+ ......... 8,571 109,280
-----------
PORTUGAL (1.5%)
Cimpor-Cimentos de Portugal
S.A. ............................... 12,200 389,617
Electricidade de Portugal S.A. ....... 41,879 922,464
Portugal Telecom S.A. ................ 19,348 887,499
-----------
2,199,580
-----------
SPAIN (1.2%)
Telefonica S.A. ...................... 38,268 1,699,065
Telefonica S.A. (Rights) (expiring
1/30/99)* .......................... 38,268 33,927
-----------
1,732,992
-----------
SWITZERLAND (9.6%)
Cie Financiere Richemont,
Class A ............................ 804 1,138,438
Edipresse S.A. (Bearer) .............. 1,104 317,959
Fischer (Georg) AG (Bearer) .......... 1,619 548,323
Julius Baer Holding AG (Bearer) 582 1,937,171
Kuoni Reisen AG (Registered) ......... 97 385,454
Nestle S.A. (Registered) ............. 1,291 2,814,502
Novartis AG (Registered) ............. 1,833 3,608,531
Swisscom AG (Registered)* ............ 2,140 897,193
UBS AG (Registered) .................. 7,127 2,192,923
-----------
13,840,494
-----------
TOTAL OTHER EUROPEAN
COUNTRIES ....................... 68,904,704
-----------
SCANDINAVIA (7.8%)
FINLAND (2.5%)
Huhtamaki, Class I ................... 19,973 759,914
Nokia OYJ, Class A ................... 19,062 2,317,818
Sampo Insurance Co., plc,
Class A ............................ 15,300 580,620
-----------
3,658,352
-----------
SWEDEN (5.3%)
Ericsson LM, Class B ................. 57,215 1,363,987
ForeningsSparbanken AB ............... 20,407 529,348
Nordbanken Holding AB ................ 65,734 422,217
Pharmacia & Upjohn, Inc. ............. 67,066 3,760,981
S.K.F. AB ............................ 19,010 221,900
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Sandvik AB, Class B .................. 7,200 $ 124,510
Svenska Handelsbanken, Class A 12,243 517,198
Volvo AB, Class B .................... 26,071 598,982
-----------
7,539,123
-----------
TOTAL SCANDINAVIA .................. 11,197,475
-----------
SOUTHEAST ASIA (4.0%)
HONG KONG (0.6%)
China Telecom Ltd. ................... 72,000 124,534
Hong Kong & China Gas Co.,
Ltd. ............................... 197,000 250,470
Hutchison Whampoa Ltd. ............... 4,000 28,268
Smartone Telecommunications .......... 105,000 291,394
Smartone Telecommunications*+ (SS.) .. 39,000 108,232
-----------
802,898
-----------
KOREA (2.1%)
Korea Electric Power ................. 64,906 1,607,813
Pohang Iron & Steel (ADR) ............ 16,600 280,125
Samsung Electronics Co. .............. 16,390 1,099,479
-----------
2,987,417
-----------
SINGAPORE (1.3%)
Overseas-Chinese Banking Corp.
(Foreign) .......................... 191,000 1,296,485
United Overseas Bank Ltd.
(Foreign) .......................... 102,000 655,273
-----------
1,951,758
-----------
TOTAL SOUTHEAST ASIA ............... 5,742,073
-----------
UNITED KINGDOM (14.9%)
Allied Zurich plc* ................... 160,384 2,392,337
Avis Europe plc ...................... 52,249 218,204
Bass plc ............................. 77,790 1,132,512
British Airways plc .................. 144,768 976,128
Cable & Wireless plc ................. 178,262 2,191,867
Dixons Group plc ..................... 93,953 1,321,707
EMI Group plc ........................ 90,337 604,231
Granada Group plc .................... 110,379 1,951,311
Marks & Spencer plc .................. 137,000 939,707
National Westminster Bank plc ........ 87,621 1,689,673
Orange plc* .......................... 108,155 1,256,968
Scottish Power plc ................... 1,400 14,384
Securicor plc ........................ 252,803 2,119,941
Siebe plc ............................ 392,671 1,548,418
SmithKline Beecham plc ............... 89,400 1,249,476
Smiths Industries plc ................ 75,097 1,071,440
Vodafone Group plc ................... 42,489 689,981
-----------
TOTAL UNITED KINGDOM ............... 21,368,285
-----------
TOTAL COMMON STOCKS (92.1%) 132,389,909
(Cost $115,305,768).................
</TABLE>
41
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES(4.2%)
Federal Home Loan Bank
(Discount Note), 1/22/99 ............ $3,000,000 $ 2,992,365
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/22/99 ............ 3,000,000 2,992,365
------------
5,984,730
------------
REPURCHASE AGREEMENT (3.3%)
Merrill Lynch 4.80%,
dated 12/31/98, due 1/4/99, to
be repurchased at $4,755,534,
collateralized by $4,265,000 of
U. S. Treasury Bonds, 6.25%
due 8/15/23, valued at
$4,868,764.......................... 4,753,000 4,753,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (7.5%)
(Cost/Amortized $10,735,815)........ 10,737,730
------------
TOTAL INVESTMENTS (99.6%)
(Cost/Amortized Cost
$126,041,583) ...................... 143,127,639
OTHER ASSETS
LESS LIABILITIES (0.4%) ............ 593,091
------------
NET ASSETS (100%) .................... $143,720,730
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MARKET SECTOR DIVERSIFICATION (Unaudited)
As a Percentage of Total Common Stocks
Basic Materials ......................... 3.7%
Business Services ....................... 3.5
Capital Goods ........................... 9.3
Consumer Cyclicals ...................... 10.0
Consumer Non-Cyclicals .................. 16.8
Credit Sensitive
Banks ................................. 14.2
Financial Services .................... 6.4
Insurance ............................. 1.7
Real Estate ........................... 0.1
Utility--Electric ..................... 3.0
Utility--Gas .......................... 0.2
Utility--Telephone .................... 6.3
----
Total Credit Sensitive .................. 31.9
Diversified ............................. 4.8
Energy .................................. 2.1
Technology .............................. 17.9
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998 these securities amounted to $217,512 or
0.15% of net assets.
(SS.) Illiquid security: is not actively traded.
Glossary:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
GDS--Global Depositary Share
42
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/6/99-3/22/99 ......... 3,122 $5,268,436 $5,182,113 $ (86,323)
French Franc, expiring 1/29/99 ................. 717 128,185 128,450 265
Japanese Yen, expiring 1/4/99-3/15/99 .......... 604,377 5,294,301 5,408,277 113,976
FOREIGN CURRENCY SALE CONTRACTS
British Pound, expiring 3/22/99 ................ 3,043 5,083,332 5,051,377 31,955
Irish Punt, expiring 1/4/99 .................... 709 1,054,653 1,055,006 (354)
Japanese Yen, expiring 3/15/99 ................. 593,540 4,537,768 5,312,186 (774,418)
----------
$ (714,899)
==========
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $151,267,967
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 83,552,356
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 19,108,802
Aggregate gross unrealized depreciation ......... (3,194,948)
------------
Net unrealized appreciation ..................... $ 15,913,854
============
Federal income tax cost of investments .......... $127,213,784
============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$3,441,370, which was secured by cash collateral of $3,629,840.
The Portfolio has a net capital loss carryforward of $1,651,370 which expires
in the year 2006.
See Notes to Financial Statements.
43
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES (8.5%)
ENVIRONMENTAL CONTROL (1.0%)
Waste Management, Inc. .............. 39,400 $ 1,837,025
------------
PRINTING, PUBLISHING,
BROADCASTING (4.1%)
Time Warner, Inc. ................... 73,900 4,586,419
Viacom, Inc., Class B* .............. 33,900 2,508,600
------------
7,095,019
------------
PROFESSIONAL SERVICES (3.4%)
Compuware Corp.* .................... 17,800 1,390,625
Interpublic Group, Inc. ............. 30,600 2,440,350
Pitney Bowes, Inc. .................. 22,300 1,473,194
Quintiles Transnational Corp.* ...... 13,300 709,887
------------
6,014,056
------------
TOTAL BUSINESS SERVICES ........... 14,946,100
------------
CAPITAL GOODS (4.3%)
AEROSPACE (0.9%)
United Technologies Corp. ........... 15,200 1,653,000
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.5%)
Masco Corp. ......................... 29,300 842,375
------------
ELECTRICAL EQUIPMENT (2.9%)
General Electric Co. ................ 42,800 4,368,275
General Instrument Corp.* ........... 20,100 682,144
------------
5,050,419
------------
TOTAL CAPITAL GOODS ............... 7,545,794
------------
CONSUMER CYCLICALS (15.4%)
APPAREL & TEXTILES (0.5%)
GAP, Inc. ........................... 16,600 933,750
------------
FOOD SERVICES, LODGING (0.6%)
Tricon Global Restaurants, Inc.*..... 20,700 1,037,588
------------
LEISURE RELATED (1.3%)
Carnival Corp., Class A ............. 46,300 2,222,400
------------
RETAIL--GENERAL (13.0%)
Costco Co., Inc.* ................... 43,400 3,132,937
CVS Corp. ........................... 75,100 4,130,500
Estee Lauder Cos., Class A .......... 18,500 1,581,750
Home Depot, Inc. .................... 52,400 3,206,225
TJX Cos., Inc. ...................... 78,900 2,288,100
Wal-Mart Stores, Inc. ............... 67,500 5,497,031
Walgreen Co. ........................ 48,600 2,846,138
------------
22,682,681
------------
TOTAL CONSUMER CYCLICALS .......... 26,876,419
------------
CONSUMER NON-CYCLICALS (18.9%)
DRUGS (11.9%)
Bristol-Myers Squibb Co. ............ 27,900 3,733,369
Cardinal Health, Inc. ............... 19,850 1,506,119
Eli Lilly & Co. ..................... 32,700 2,906,212
McKesson Corp. ...................... 8,900 703,656
Pfizer, Inc. ........................ 28,100 3,524,794
Schering-Plough Corp. ............... 77,100 4,259,775
Warner Lambert Co. .................. 54,400 4,090,200
------------
20,724,125
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
FOODS (1.2%)
Quaker Oats Co. ..................... 16,500 $ 981,750
Sara Lee Corp. ...................... 40,300 1,135,956
------------
2,117,706
------------
HOSPITAL SUPPLIES & SERVICES (1.2%)
Centocor, Inc.* ..................... 16,300 735,538
IMS Health, Inc. .................... 18,700 1,410,681
------------
2,146,219
------------
RETAIL--FOOD (2.2%)
Kroger Co.* ......................... 13,400 810,700
Safeway, Inc.* ...................... 50,700 3,089,531
------------
3,900,231
------------
SOAPS & TOILETRIES (1.6%)
Clorox Co. .......................... 9,100 1,062,994
Colgate Palmolive Co. ............... 18,600 1,727,475
------------
2,790,469
------------
TOBACCO (0.8%)
Philip Morris Cos., Inc. ............ 25,900 1,385,650
------------
TOTAL CONSUMER NON-CYCLICALS....... 33,064,400
------------
CREDIT SENSITIVE (21.1%)
BANKS (5.8%)
BankAmerica Corp. ................... 6
Charter One Financial, Inc. ......... 7,500 208,125
Comerica, Inc. ...................... 23,950 1,633,091
Fifth Third Bancorp ................. 18,700 1,333,544
Firstar Corp. ....................... 23,860 2,224,945
MBNA Corp. .......................... 72,850 1,816,697
Wells Fargo Co. ..................... 74,600 2,979,336
------------
10,195,744
------------
FINANCIAL SERVICES (6.4%)
American Express Co. ................ 9,100 930,475
Associates First Capital Corp.,
Class A ........................... 20,100 851,737
Federal Home Loan Mortgage
Corp. ............................. 60,800 3,917,800
Merrill Lynch & Co. ................. 11,800 787,650
Providian Financial Corp. ........... 16,450 1,233,750
SunAmerica, Inc. .................... 42,800 3,472,150
------------
11,193,562
------------
INSURANCE (2.2%)
American General Corp. .............. 14,700 1,146,600
American International Group,
Inc. .............................. 28,550 2,758,644
------------
3,905,244
------------
UTILITY--ELECTRIC (0.9%)
Peco Energy Co. ..................... 36,500 1,519,312
------------
UTILITY--TELEPHONE (5.8%)
MCI WorldCom, Inc.* ................. 60,600 4,348,050
SBC Communications, Inc. ............ 53,000 2,842,125
Sprint Corp. (Fon Group) ............ 34,600 2,910,725
------------
10,100,900
------------
TOTAL CREDIT SENSITIVE ............. 36,914,762
------------
</TABLE>
44
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- --------------
<S> <C> <C>
DIVERSIFIED (3.2%)
MISCELLANEOUS (3.2%)
Tyco International Ltd. ........... 74,900 $ 5,650,269
-----------
ENERGY (1.7%)
OIL--DOMESTIC (1.7%)
Exxon Corp. ....................... 41,800 3,056,625
-----------
TECHNOLOGY (23.7%)
ELECTRONICS (9.2%)
3Com Corp.* ....................... 15,000 672,188
BMC Software, Inc.* ............... 33,200 1,479,475
HBO & Co. ......................... 75,100 2,154,431
Intel Corp. ....................... 32,200 3,817,712
Micron Technology, Inc.* .......... 16,700 844,394
Microsoft Corp.* .................. 43,500 6,032,906
Sun Microsystems, Inc.* ........... 12,900 1,104,563
-----------
16,105,669
-----------
OFFICE EQUIPMENT (6.1%)
Cisco Systems, Inc.* .............. 20,000 1,856,250
Dell Computer Corp.* .............. 20,700 1,514,981
EMC Corp.* ........................ 33,000 2,805,000
International Business Machines
Corp. ........................... 24,100 4,452,475
-----------
10,628,706
-----------
OFFICE EQUIPMENT SERVICES (2.4%)
America On-Line, Inc.* ............ 6,400 1,024,000
Ascend Communications, Inc.* ...... 24,300 1,597,725
Computer Sciences Corp. ........... 23,400 1,507,838
-----------
4,129,563
-----------
TELECOMMUNICATIONS (6.0%)
AirTouch Communications, Inc.*..... 16,800 1,211,700
Lucent Technologies, Inc. ......... 47,700 5,247,000
Tele-Communications TCI
Ventures Group, Class A* ........ 71,500 1,684,719
Telecommunications, Inc.,
Class A* ........................ 43,000 2,378,437
-----------
10,521,856
-----------
TOTAL TECHNOLOGY ................ 41,385,794
-----------
TOTAL COMMON STOCKS (96.8%)
(Cost $131,953,021) ............. 169,440,163
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (0.9%)
Federal Home Loan Mortgage
Corporation
(Discount Note), 1/22/99 ......... $ 1,600,000 $ 1,595,928
------------
REPURCHASE AGREEMENT (5.5%)
Merrill Lynch
4.80%, dated 12/31/98, due
1/4/99, to be repurchased at
$9,670,149 collateralized by
$9,445,000 of U.S. Treasury
Notes, 6.875% due 3/31/00,
valued at $9,803,923........... 9,665,000 9,665,000
------------
TOTAL SHORT-TERM DEBT SECURITIES (6.4%)
(Cost/Amortized Cost
$11,260,296) .................. 11,260,928
------------
TOTAL INVESTMENTS (103.2%)
(Cost/Amortized Cost
$143,213,317) .................... 180,701,091
OTHER ASSETS
LESS LIABILITIES (-3.2%) ......... (5,686,116)
------------
NET ASSETS (100%) .................. $175,014,975
============
</TABLE>
- ---------------------
* Non-income producing
45
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $156,331,329
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 55,881,974
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 37,518,775
Aggregate gross unrealized depreciation ......... (103,033)
------------
Net unrealized appreciation ..................... $ 37,415,742
============
Federal income tax cost of investments .......... $143,285,349
============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$4,380,435, which was secured by cash collateral of $4,435,973.
The Portfolio has a net capital loss carryforward of $4,282,990 which expires
in the year 2006.
See Notes to Financial Statements.
46
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (10.6%)
CHEMICALS (4.5%)
Dow Chemical Co. ....................................................... 31,500 $ 2,864,531
E.I. Du Pont de Nemours & Co. 38,500 2,042,906
Great Lakes Chemical Corp. ............................................. 39,100 1,564,000
Hercules, Inc. ......................................................... 65,500 1,793,062
Imperial Chemical Industries plc
(ADR) ................................................................ 21,600 754,650
Nalco Chemical Co. ..................................................... 41,100 1,274,100
Witco Corp. ............................................................ 48,100 766,594
------------
11,059,843
------------
CHEMICALS--SPECIALTY (1.3%)
International Flavors &
Fragrances, Inc. ..................................................... 57,200 2,527,525
Lubrizol Corp. ......................................................... 24,100 619,069
------------
3,146,594
------------
METALS & MINING (1.5%)
Inco Ltd. .............................................................. 56,500 596,781
Newmont Mining Corp. ................................................... 47,300 854,356
Phelps Dodge Corp. ..................................................... 22,800 1,159,950
Reynolds Metals Co. .................................................... 17,700 932,569
------------
3,543,656
------------
PAPER (3.1%)
Consolidated Papers, Inc. .............................................. 44,400 1,221,000
International Paper Co. ................................................ 25,900 1,160,644
Kimberly-Clark Corp. ................................................... 50,900 2,774,050
Union Camp Corp. ....................................................... 34,700 2,342,250
------------
7,497,944
------------
STEEL (0.2%)
USX-U.S. Steel Group, Inc. ............................................. 25,800 593,400
------------
TOTAL BASIC MATERIALS ................................................. 25,841,437
------------
BUSINESS SERVICES (4.0%)
ENVIRONMENTAL CONTROL (1.2%)
Browning-Ferris Industries, Inc. ....................................... 47,000 1,336,563
Waste Management, Inc. ................................................. 36,535 1,703,444
------------
3,040,007
------------
PRINTING, PUBLISHING, BROADCASTING (2.3%)
Donnelley (R.R.) & Sons Co. ............................................ 32,300 1,415,144
Dow Jones & Co., Inc. .................................................. 23,500 1,130,937
Knight Ridder, Inc. .................................................... 40,200 2,055,225
Readers Digest Association, Inc.,
Class A (Non Voting) ................................................. 36,300 914,306
------------
5,515,612
------------
TRUCKING, SHIPPING (0.5%)
Alexander & Baldwin, Inc. .............................................. 21,100 490,575
GATX Corp. ............................................................. 17,600 666,600
------------
1,157,175
------------
TOTAL BUSINESS SERVICES ............................................... 9,712,794
------------
CAPITAL GOODS (7.3%)
AEROSPACE (1.0%)
Allied Signal, Inc. .................................................... 32,500 1,440,156
Boeing Co. ............................................................. 34,500 1,125,563
------------
2,565,719
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ------------------
<S> <C> <C>
BUILDING MATERIALS & FOREST
PRODUCTS (2.1%)
Armstrong World Industries, Inc. 31,700 $ 1,911,906
Georgia-Pacific Corp. .................................................. 19,400 1,136,112
PPG Industries, Inc. ................................................... 26,800 1,561,100
The Stanley Works ...................................................... 16,300 452,325
------------
5,061,443
------------
ELECTRICAL EQUIPMENT (2.8%)
AMP, Inc. .............................................................. 40,449 2,105,876
Cooper Industries, Inc. ................................................ 21,600 1,030,050
General Electric Co. ................................................... 27,100 2,765,894
Hubbell, Inc., Class B ................................................. 24,900 946,200
------------
6,848,020
------------
MACHINERY (1.4%)
Deere & Co. ............................................................ 13,000 430,625
Pall Corp. ............................................................. 63,200 1,599,750
Tomkins plc ............................................................ 300,500 1,417,453
------------
3,447,828
------------
TOTAL CAPITAL GOODS ................................................... 17,923,010
------------
CONSUMER CYCLICALS (6.2%)
AUTO RELATED (1.6%)
Eaton Corp. ............................................................ 3,000 212,063
Genuine Parts Co. ...................................................... 57,000 1,905,937
TRW Inc. ............................................................... 31,000 1,741,813
------------
3,859,813
------------
AUTOS & TRUCKS (0.8%)
General Motors Corp. ................................................... 28,000 2,003,750
------------
FOOD SERVICES, LODGING (0.3%)
Hilton Hotels Corp. .................................................... 41,200 787,950
------------
HOUSEHOLD FURNITURE, APPLIANCES (0.6%)
Whirlpool Corp. ........................................................ 26,000 1,439,750
------------
PHOTO & OPTICAL (1.5%)
Bausch & Lomb, Inc. .................................................... 24,200 1,452,000
Eastman Kodak Co. ...................................................... 29,200 2,102,400
------------
3,554,400
------------
RETAIL--GENERAL (1.4%)
J.C. Penny Co. ......................................................... 29,300 1,373,437
May Department Stores Co. .............................................. 18,100 1,092,788
Toys-R-Us, Inc.* ....................................................... 53,600 904,500
------------
3,370,725
------------
TOTAL CONSUMER CYCLICALS .............................................. 15,016,388
------------
CONSUMER NON-CYCLICALS (13.5%)
BEVERAGES (2.1%)
Anheuser-Busch Cos., Inc. .............................................. 51,600 3,386,250
Brown-Forman Corp., Class B ............................................ 22,900 1,733,244
------------
5,119,494
------------
CONTAINERS (0.2%)
Tupperware Corp. ....................................................... 28,500 468,469
------------
DRUGS (3.5%)
Abbott Laboratories .................................................... 19,300 945,700
American Home Products Corp. ........................................... 72,700 4,093,919
Pharmacia & Upjohn, Inc. ............................................... 62,300 3,527,737
------------
8,567,356
------------
</TABLE>
47
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
FOODS (4.3%)
General Mills, Inc. ...................................................... 44,500 $ 3,459,875
H.J. Heinz Co. ........................................................... 30,000 1,698,750
Kellogg Co. .............................................................. 46,400 1,583,400
McCormick & Co., Inc. (Non
Voting) ................................................................ 51,600 1,744,725
Quaker Oats Co. .......................................................... 33,700 2,005,150
------------
10,491,900
------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
Smith & Nephew plc ....................................................... 280,900 873,986
------------
TOBACCO (3.1%)
Philip Morris Cos., Inc. ................................................. 67,100 3,589,850
RJR Nabisco Holdings Corp. ............................................... 50,600 1,502,188
UST, Inc. ................................................................ 68,900 2,402,887
------------
7,494,925
------------
TOTAL CONSUMER NON-CYCLICALS 33,016,130
------------
CREDIT SENSITIVE (34.3%)
BANKS (9.5%)
Bank One Corp. ........................................................... 36,050 1,840,803
BankAmerica Corp. ........................................................ 16,100 968,013
BankBoston Corp. ......................................................... 27,700 1,078,569
Chase Manhattan Corp. .................................................... 24,200 1,647,113
Citigroup, Inc. .......................................................... 46,000 2,277,000
First Union Corp. ........................................................ 30,660 1,864,511
Fleet Financial Group, Inc. .............................................. 45,900 2,051,156
J.P. Morgan & Co. ........................................................ 20,800 2,185,300
Mellon Bank Corp. ........................................................ 62,100 4,269,375
Mercantile Bankshares Corp. .............................................. 31,050 1,195,425
National City Corp. ...................................................... 18,500 1,341,250
PNC Bank Corp. ........................................................... 16,300 882,238
Wells Fargo Co. .......................................................... 42,200 1,685,362
------------
23,286,115
------------
FINANCIAL SERVICES (2.8%)
Dun & Bradstreet Corp. ................................................... 35,900 1,133,094
Fannie Mae ............................................................... 38,900 2,878,600
H&R Block, Inc. .......................................................... 34,500 1,552,500
Transamerica Corp. ....................................................... 11,600 1,339,800
------------
6,903,994
------------
INSURANCE (4.1%)
American General Corp. ................................................... 32,000 2,496,000
Chubb Corp. .............................................................. 4,200 272,475
EXEL Ltd., Class A ....................................................... 21,300 1,597,500
Lincoln National Corp. ................................................... 14,200 1,161,738
Safeco Corp. ............................................................. 49,100 2,108,231
St. Paul Cos. ............................................................ 69,966 2,431,318
------------
10,067,262
------------
REAL ESTATE (2.4%)
Archstone Communities Trust .............................................. 24,000 486,000
Cresent Real Estate Equities Co. 45,000 1,035,000
Rouse Co. ................................................................ 10,400 286,000
Simon Property Group, Inc. ............................................... 60,100 1,712,850
Starwood Hotels & Resorts ................................................ 73,297 1,662,926
Weingarten Realty Investors .............................................. 11,500 513,187
------------
5,695,963
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
UTILITY--ELECTRIC (6.5%)
Baltimore Gas & Electric Co. ............................................. 16,300 $ 503,263
Central & South West Corp. ............................................... 23,500 644,781
Dominion Resources, Inc. ................................................. 16,600 776,050
DQE, Inc. ................................................................ 30,600 1,344,488
Duke Energy Corp. ........................................................ 26,300 1,684,844
Entergy Corp. ............................................................ 27,800 865,275
FirstEnergy Corp. ........................................................ 55,270 1,799,729
GPU, Inc. ................................................................ 12,900 570,019
Houston Industries, Inc. ................................................. 44,900 1,442,412
Pacificorp ............................................................... 53,600 1,128,950
Peco Energy Co. .......................................................... 15,600 649,350
Southern Co. ............................................................. 62,400 1,813,500
TECO Energy, Inc. ........................................................ 33,500 944,281
Unicom Corp. ............................................................. 44,000 1,696,750
------------
15,863,692
------------
UTILITY--TELEPHONE (9.0%)
Alltel Corp. ............................................................. 74,800 4,473,975
AT&T Corp. ............................................................... 34,400 2,588,600
Bell Atlantic Corp. ...................................................... 43,100 2,284,300
Bellsouth Corp. .......................................................... 21,800 1,087,275
GTE Corp. ................................................................ 49,100 3,191,500
SBC Communications, Inc. ................................................. 107,581 5,769,031
Telebras S.A. (ADR) (Block)* ............................................. 14,800 1,075,775
U.S. WEST, Inc. .......................................................... 23,800 1,538,075
------------
22,008,531
------------
TOTAL CREDIT SENSITIVE .................................................. 83,825,557
------------
DIVERSIFIED (2.8%)
MISCELLANEOUS (2.8%)
Corning, Inc. ............................................................ 22,300 1,003,500
Fortune Brands, Inc. ..................................................... 42,800 1,353,550
Minnesota Mining &
Manufacturing Co. ...................................................... 33,300 2,368,462
Olin Corp. ............................................................... 35,500 1,005,094
Tyco International Ltd. .................................................. 16,048 1,210,621
------------
TOTAL DIVERSIFIED ....................................................... 6,941,227
------------
ENERGY (15.0%)
OIL--DOMESTIC (9.5%)
Amoco Corp. .............................................................. 61,700 3,725,137
Atlantic Richfield Co. ................................................... 41,200 2,688,300
Chevron Corp. ............................................................ 33,100 2,745,231
Exxon Corp. .............................................................. 53,400 3,904,875
Mobil Corp. .............................................................. 33,300 2,901,262
Occidental Petroleum Corp. ............................................... 39,300 663,188
Phillips Petroleum Co. ................................................... 21,600 920,700
Texaco, Inc. ............................................................. 47,000 2,485,125
Unocal Corp. ............................................................. 70,600 2,060,638
USX-Marathon Group, Inc. ................................................. 37,900 1,141,738
------------
23,236,194
------------
OIL--INTERNATIONAL (2.1%)
Amerada Hess Corp. ....................................................... 36,600 1,820,850
British Petroleum Co. plc (ADR) 12,400 1,178,000
Royal Dutch Petroleum Co. (NY
Shares) ................................................................ 43,700 2,092,137
------------
5,090,987
------------
</TABLE>
48
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ---------------
<S> <C> <C>
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Baker Hughes, Inc. ............. 75,000 $ 1,326,563
------------
RAILROADS (2.9%)
Burlington Northern Santa Fe
Corp. ........................ 41,900 1,414,125
Norfolk Southern Corp. ......... 91,800 2,908,912
Union Pacific Corp. ............ 58,300 2,627,144
------------
6,950,181
------------
TOTAL ENERGY .................. 36,603,925
------------
TECHNOLOGY (1.4%)
OFFICE EQUIPMENT (0.8%)
Hewlett Packard Co. ............ 28,600 1,953,738
------------
TELECOMMUNICATIONS (0.6%)
BCE, Inc. ...................... 34,300 1,301,256
Frontier Corp. ................. 6,800 231,200
------------
1,532,456
------------
TOTAL TECHNOLOGY .............. 3,486,194
------------
TOTAL COMMON STOCKS (95.1%)
(Cost $222,057,692) .......... 232,366,662
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------ ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
CERTIFICATES OF DEPOSIT (0.3%)
Societe Generale New York
5.73%, 1/8/99 ............................ $ 750,000 $ 749,978
------------
COMMERCIAL PAPER (4.6%)
Bayerische Enterprises 6.15%,
1/4/99 ................................... 5,000,000 4,997,437
Ciesco LP 5.20%, 2/5/99 .................... 710,000 706,411
Equilon Enterprises LLC 5.80%,
1/14/99 .................................. 740,000 738,451
International Lease Finance
Corp. 5.04%, 2/22/99 ..................... 1,130,000 1,121,774
National Australia Funding
5.32%, 1/8/99 ............................ 1,250,000 1,248,707
Repeat Offering Securitization
Entity, Inc. 5.04%, 1/8/99+ (SS.) ........ 1,020,000 1,018,929
Statoil 5.15%, 1/21/99+ (SS.) .............. 1,564,000 1,559,524
------------
11,391,233
------------
TOTAL SHORT-TERM DEBT SECURITIES (4.9%)
(Amortized Cost $12,141,211) ............... 12,141,211
------------
TOTAL INVESTMENTS (100%)
(Cost/Amortized Cost
$234,198,903) ............................ 244,507,873
OTHER ASSETS
LESS LIABILITIES (0.0%) .................. (91,855)
------------
NET ASSETS (100%) .......................... $244,416,018
============
</TABLE>
- ----------
* Non-income producing
+ Securities except from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31,1998 these securities amounted to $2,578,453 or
1.05% of net assets
(SS.) Illiquid security: is not actively traded
Glossary:
ADR--American Depositary Receipt
Block-Shares represent each of the 12 holding companies that were formed
following the September 21, 1998 break-up of Telebras S.A.
49
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $ 160,979,891
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 28,506,026
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 25,159,635
Aggregate gross unrealized depreciation ......... (14,870,559)
-------------
Net unrealized appreciation ..................... $ 10,289,076
=============
Federal income tax cost of investments .......... $ 234,218,797
=============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$2,619,876, which was secured by cash collateral of $2,553,824.
The value of the collateral was sufficient at the time loan agreements were
entered into. As a result of an increase in the market value of the loaned
securities on the last business day for the year, the Portfolio was furnished
with additional collateral the following business day.
For the period from January 1, 1998 to December 31, 1998 the Portfolio incurred
approximately $3,544 as brokerage commissions with Donaldson, Lufkin and
Jenrette Securities Corp., an affiliated broker/dealer.
See Notes to Financial Statements.
50
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS, RIGHTS AND WARRANTS:
AUSTRALIA & NEW ZEALAND (2.2%)
AUSTRALIA (2.0%)
Australian Gas & Light Co., Ltd. 23,810 $ 171,486
Brambles Industries Ltd. ............ 8,000 194,854
Colonial Ltd. ....................... 73,676 252,811
Commonwealth Bank of
Australia ......................... 22,597 320,721
Goodman Fielder Ltd. ................ 114,000 115,258
John Fairfax Holdings Ltd. .......... 60,000 123,162
Lend Lease Corp. .................... 10,216 137,717
National Australia Bank Ltd. ........ 161 2,427
News Corp., Ltd. .................... 35,034 231,415
Publishing & Broadcasting Ltd. ...... 40,000 174,756
Star City Holdings Ltd. ............. 107,200 94,786
Tabcorp Holdings Ltd. ............... 31,000 189,952
Telstra Corp., Ltd. ................. 78,305 366,097
Westpac Banking Corp. ............... 49,651 332,226
------------
2,707,668
------------
NEW ZEALAND (0.2%)
Telecom Corp. of New Zealand
Ltd. (Installment Receipts) ....... 27,000 59,000
Telecom Corp. of New Zealand
Ltd. .............................. 46,000 199,825
------------
258,825
------------
TOTAL AUSTRALIA & NEW ZEALAND 2,966,493
------------
CANADA (0.2%)
Alcan Aluminum Ltd. ................. 6,620 178,744
Royal Bank of Canada ................ 1,800 89,649
------------
TOTAL CANADA ...................... 268,393
------------
JAPAN (15.6%)
Advantest Corp. ..................... 2,300 145,928
Alps Electric Co., Ltd. ............. 10,000 183,872
Amada Co., Ltd. ..................... 17,000 82,401
Canon, Inc. ......................... 49,000 1,048,604
Citizen Watch Co., Ltd. ............. 10,000 60,257
Daiichi Pharma Co., Ltd. ............ 22,000 372,158
Dainippon Screen Manufacturing
Co., Ltd. ......................... 15,000 37,483
Daiwa House Industry Co., Ltd........ 32,000 341,125
DDI Corp. ........................... 55 204,697
Denso Corp. ......................... 47,000 870,448
East Japan Railway Co. .............. 66 369,039
Fanuc ............................... 5,700 195,472
Fujitsu Ltd. ........................ 9,000 120,027
Hitachi Ltd. ........................ 62,000 384,581
Honda Motor Co., Ltd. ............... 3,000 98,627
Ito-Yokado Co., Ltd. ................ 10,000 700,044
Kao Corp. ........................... 26,000 587,506
Kokuyo .............................. 14,000 188,693
Komatsu Ltd. ........................ 33,000 173,407
Komori Corp. ........................ 13,000 274,169
Kuraray Co., Ltd. ................... 37,000 408,852
Kyocera Corp. ....................... 13,000 687,727
Makita Corp. ........................ 23,000 256,597
Marui Co., Ltd. ..................... 38,000 732,388
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Matsushita Electric Industries
Co. ............................... 53,000 $ 938,830
Mitsubishi Corp. .................... 39,000 224,635
Mitsubishi Heavy Industries Ltd...... 158,000 616,039
Mitsui Fudosan Co., Ltd. ............ 77,000 583,385
Murata Manufacturing Co., Ltd........ 15,000 623,394
NEC Corp. ........................... 85,000 783,341
Nippon Telegraph & Telephone
Corp. ............................. 61 471,351
Nomura Securities Co. ............... 56,000 488,790
NTT Mobile Communication
Network, Inc. ..................... 9 370,846
Pioneer Electric Corp. .............. 8,000 134,338
Sangetsu Co., Ltd. .................. 2,000 29,951
Sankyo Co. .......................... 36,000 787,949
Sekisui Chemical Co. ................ 49,000 329,996
Sekisui House Ltd. .................. 30,000 317,678
Seven-Eleven Japan Co., Ltd. ........ 4,000 322,552
Shin-Etsu Chemical Co. .............. 29,000 698,981
Shiseido Co., Ltd. .................. 20,000 257,333
Sony Corp. .......................... 13,000 948,073
Sumitomo Corp. ...................... 57,000 277,802
Sumitomo Electric Industries ........ 77,000 867,231
Sumitomo Forestry Co. ............... 20,000 143,553
TDK Corp. ........................... 12,000 1,098,449
Tokio Marine & Fire Insurance
Co. ............................... 16,000 191,405
Tokyo Electron Ltd. ................. 8,000 304,121
Tokyo Steel Manufacturing ........... 7,800 39,121
Toppan Printing Co., Ltd. ........... 30,000 366,859
Uny Co., Ltd. ....................... 15,000 274,479
------------
TOTAL JAPAN ........................ 21,014,584
------------
LATIN AMERICA (3.5%)
ARGENTINA (0.6%)
Banco Frances Rio Plata (ADR)........ 4,370 90,678
Banco Galicia y Bueno (ADR) ......... 2,791 49,200
Telefonica de Argentina (ADR)........ 7,450 208,134
YPF S.A., Class D (ADR) ............. 16,031 447,866
------------
795,878
------------
BRAZIL (1.6%)
Banco Bradesco S.A. ................. 13,277,000 73,624
Banco Itau S.A. ..................... 158,000 77,151
Brahma .............................. 224,000 97,887
CEMIG ............................... 5,147,177 97,981
CEMIG (ADR) ......................... 5,223 99,428
Cia Cimento Portland Itau ........... 70,000 7,966
Pao de Acucar (ADR) ................. 4,574 70,897
Petrobras S.A. ...................... 2,042,654 231,611
Telebras S.A. (ADR) (Block)* ........ 15,000 1,090,312
Telecom de Sao Paulo S.A. ........... 1,201,554 163,787
Telesp Celular S.A., Class B* ....... 911,706 40,068
Unibanco S.A. (GDR) ................. 5,675 81,933
------------
2,132,645
------------
CHILE (0.0%)
CCU S.A. (ADS) ...................... 649 12,493
Chilectra S.A. (ADR) (SS.)+ ......... 2,211 48,964
------------
61,457
------------
</TABLE>
51
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
MEXICO (1.3%)
Cemex S.A. ............................. 10,000 $ 24,702
Cemex S.A. (ADR) ....................... 27,000 117,941
Cemex S.A. (CPO) ....................... 300 647
Fomento Economico Mexicano
S.A. ................................. 57,000 154,622
Gruma S.A. (ADR)* (SS.) ................ 3,467 35,057
Gruma S.A., Class B* ................... 15,250 38,518
Grupo Industrial Maseca S.A.,
Class B .............................. 84,000 67,892
Grupo Modelo S.A., Class C ............. 75,000 158,365
Grupo Televisa S.A. (GDR)* ............. 6,500 160,469
Kimberly Clark de Mexico,
Class A .............................. 48,000 152,516
Panamerican Beverages, Inc.,
Class A .............................. 9,000 196,312
Telmex, Class L (ADR) .................. 12,000 584,250
TV Azteca S.A. (ADS) ................... 5,800 38,788
-----------
1,730,079
-----------
TOTAL LATIN AMERICA .................. 4,720,059
-----------
OTHER EUROPEAN COUNTRIES (43.9%)
BELGIUM (1.9%)
Credit Communal
Holdings/Dexia ....................... 1,105 183,794
Fortis AG .............................. 2,040 734,683
Kredietbank N.V. ....................... 17,420 1,370,622
UCB S.A. ............................... 36 220,769
-----------
2,509,868
-----------
CZECH REPUBLIC (0.0%)
SPT Telecom A/S* ....................... 1,900 29,036
-----------
FRANCE (9.4%)
Alcatel Alsthom ........................ 4,210 515,187
Carrefour S.A. ......................... 911 687,630
Compagnie de Saint Gobain .............. 3,060 431,942
Credit Commercial de France ............ 4,909 455,814
Dexia France ........................... 1,464 225,513
Elf Acquitaine S.A. .................... 3,440 397,574
Groupe Danone .......................... 1,680 480,902
Groupe GTM ............................. 1,000 103,766
L'Oreal ................................ 410 296,341
Lafarge S.A. ........................... 1,931 183,444
Lapeyre S.A. ........................... 1,920 137,057
Legrand S.A. ........................... 930 246,414
Pathe S.A. ............................. 670 186,994
Pinault-Printemps-Redoute S.A........... 7,050 1,347,061
Primagaz Cie Gaz ....................... 150 14,223
Sanofi S.A. ............................ 5,688 936,213
Schneider S.A. ......................... 11,659 707,112
SGS-ThomsonMicroelectronics
N.V. ................................. 3,460 272,368
Societe Generale Paris ................. 2,555 413,682
Sodexho Alliance S.A. .................. 5,002 1,118,615
Television Francaise ................... 2,460 437,910
Total S.A., Class B .................... 10,190 1,031,853
Vivendi ................................ 7,970 2,067,537
-----------
12,695,152
-----------
GERMANY (6.4%)
Allianz AG (Registered) ................ 2,130 792,439
Bayer AG ............................... 11,002 461,800
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Bayerische Vereinsbank AG .............. 14,338 $ 1,133,962
Buderus AG ............................. 110 40,594
Deutsche Bank AG ....................... 9,662 569,806
Deutsche Telekom AG .................... 17,500 574,933
Dresdner Bank AG ....................... 14,388 602,630
Dresdner Bank AG (Warrants)
(expiring 4/30/02)* .................. 4,238 71,969
Gehe AG ................................ 15,010 1,008,773
Hoechst AG ............................. 3,180 131,474
Hornbach Baumarkt AG ................... 260 9,361
Mannesmann AG .......................... 9,350 1,081,436
Rhoen-Kilnikum AG ...................... 2,180 210,871
SAP AG ................................. 1,700 734,473
Siemens AG ............................. 4,309 283,130
Veba AG ................................ 12,440 736,770
Volkswagen AG .......................... 2,730 220,824
-----------
8,665,245
-----------
IRELAND (0.1%)
CBT Group plc (ADR)* ................... 10,154 151,041
-----------
ITALY (5.5%)
Assicurazioni Generali S.p.A. .......... 13,440 560,847
Banca Commerciale Italiana ............. 23,000 158,573
Banca di Roma .......................... 230,000 389,477
Credito Italiano S.p.A. ................ 131,205 777,232
ENI S.p.A. (Registered) ................ 119,683 781,721
Industrie Natuzzi S.p.A. (ADR).......... 4,000 99,500
Istituto Bancario San Paolo S.p.A. ..... 41,800 738,167
Istituto Nazionale delle
Assicurazioni ........................ 177,000 467,254
Italgas S.p.A. ......................... 30,000 162,292
La Rinascente S.p.A. ................... 10,000 102,782
Mediolanum S.p.A. ...................... 55,000 407,469
Telecom Italia Mobile S.p.A. ........... 158,000 1,165,770
Telecom Italia S.p.A. .................. 190,665 1,625,870
-----------
7,436,954
-----------
LUXEMBOURG (0.1%)
Societe Europeenne des Satellites
(FDR)* ............................... 600 97,715
-----------
NETHERLANDS (10.2%)
ABN-Amro Holdings N.V. ................. 28,480 599,052
Akzo Nobel N.V. ........................ 2,320 105,629
ASM Lithography Holding N.V.*........... 14,770 451,461
CSM .................................... 10,840 625,729
Elsevier N.V. .......................... 65,637 919,246
Fortis Amev N.V. ....................... 12,320 1,020,817
Gucci Group N.V. ....................... 2,781 135,226
ING Groep N.V. ......................... 34,730 2,117,570
Koninklijke Ahold N.V. ................. 26,398 975,569
Koninklijke KPN N.V. ................... 4,160 208,233
Koninklijke Numico N.V. ................ 10,090 480,886
Koninklijke Philips Electronics
N.V. ................................. 8,740 586,421
Royal Dutch Petroleum Co. .............. 22,620 1,126,242
TNT Post Group N.V. .................... 2,640 85,052
Unilever N.V. .......................... 15,660 1,338,426
Wolters Kluwer N.V. .................... 13,960 2,986,915
-----------
13,762,474
-----------
PORTUGAL (0.6%)
Jeronimo Martins & Filho ............... 13,470 737,217
-----------
</TABLE>
52
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
RUSSIA (0.0%)
Gazprom (ADS) ......................... 3,131 $ 26,535
LUKoil Holding (ADR) .................. 110 1,705
-----------
28,240
-----------
SPAIN (2.9%)
Argentaria Corp. Banc ................. 12,520 323,748
Banco Bilbao Vizcaya S.A. ............. 16,040 251,119
Banco Santander S.A. .................. 31,024 615,590
Endesa S.A. ........................... 17,766 470,026
Gas Natural SDG S.A. .................. 3,510 381,575
Iberdrola S.A. ........................ 22,210 414,914
Repsol S.A. ........................... 5,260 280,173
Telefonica S.A. ....................... 24,883 1,104,783
Telefonica S.A. (Rights)
(expiring 1/30/99)* ................. 24,883 22,061
-----------
3,863,989
-----------
SWITZERLAND (6.8%)
ABB AG (Bearer) ....................... 380 446,081
Adecco S.A. (Bearer) .................. 1,700 777,178
CS Holdings ........................... 3,350 525,155
Nestle S.A. (Registered) .............. 1,170 2,550,711
Novartis AG (Registered) .............. 960 1,889,902
Roche Holdings AG ..................... 120 1,466,424
Swisscom AG (Registered)* ............. 520 218,009
UBS AG (Registered)* .................. 4,149 1,276,615
-----------
9,150,075
-----------
TOTAL OTHER EUROPEAN COUNTRIES 59,127,006
-----------
SCANDINAVIA (5.3%)
DENMARK (0.4%)
Den Danske Bank AS .................... 1,630 218,972
Tele Danmark A/S, Class B ............. 790 106,624
Unidanmark A/S, Class A
(Registered) ........................ 1,510 136,421
-----------
462,017
-----------
FINLAND (0.7%)
Nokia OYJ, Class A .................... 7,920 963,022
-----------
NORWAY (1.0%)
Bergesen ASA, Class A ................. 810 9,698
Norsk Hydro ASA ....................... 18,560 627,563
Orkla ASA, Class A .................... 49,900 745,148
Saga Petroleum ASA, Class B ........... 1,250 11,430
-----------
1,393,839
-----------
SWEDEN (3.2%)
ABB AB, Class A ....................... 23,470 250,768
Astra AB, Class B ..................... 59,113 1,204,786
Atlas Copco AB, Class B ............... 13,200 286,965
Electrolux AB, Class B ................ 36,460 628,252
Esselte AB, Class B ................... 1,890 31,050
Granges AB ............................ 1,115 16,114
Hennes & Mauritz AB, Class B .......... 12,520 1,023,777
Nordbanken Holding AB ................. 106,069 681,294
Sandvik AB, Class A ................... 2,330 40,581
Sandvik AB, Class B ................... 11,110 192,125
-----------
4,355,712
-----------
TOTAL SCANDINAVIA ................... 7,174,590
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- ----------------
<S> <C> <C>
SOUTHEAST ASIA (1.7%)
CHINA (0.2%)
Huaneng Power International,
Inc. (ADR)* ......................... 16,000 $ 232,000
-----------
HONG KONG (1.4%)
Cheung Kong Ltd. ...................... 11,000 79,157
China Telecom Ltd. .................... 60,000 103,779
CLP Holdings Ltd. ..................... 36,000 179,367
Hang Seng Bank Ltd. ................... 15,000 134,080
Henderson Land Development
Co., Ltd. ........................... 45,000 232,921
Hong Kong Telecommunications
Ltd. ................................ 84,800 148,316
HSBC Holdings plc ..................... 7,600 189,332
Hutchison Whampoa Ltd. ................ 105,000 742,037
Sun Hung Kai Properties Ltd. .......... 11,000 80,222
-----------
1,889,211
-----------
KOREA (0.0%)
Samsung Electronics Co. ............... 332 22,271
-----------
SINGAPORE (0.1%)
Singapore Press Holdings Ltd. ......... 15,429 164,855
-----------
TOTAL SOUTHEAST ASIA ................ 2,308,337
-----------
SOUTHERN CENTRAL ASIA (0.1%)
INDIA (0.1%)
Mahanagar Telephone Nigam
Ltd. (GDR) .......................... 6,000 70,200
-----------
UNITED KINGDOM (18.6%)
Abbey National plc .................... 39,000 835,130
ASDA Group plc ........................ 131,000 351,465
BG plc ................................ 41,529 262,052
British Petroleum Co., plc ............ 37,000 552,519
Cable & Wireless plc .................. 87,000 1,069,732
Cadbury Schweppes plc ................. 60,000 1,023,261
Caradon plc ........................... 99,100 169,833
Centrica plc .......................... 42,000 84,556
Compass Group plc ..................... 59,000 675,876
Diageo plc ............................ 171,592 1,952,829
Electrocomponents plc ................. 28,000 187,748
GKN plc ............................... 10,000 132,691
Glaxo Wellcome plc .................... 67,000 2,305,348
Heywood Williams Group plc ............ 4,000 14,442
John Laing plc, Class A ............... 9,000 37,436
Kingfisher plc ........................ 185,000 2,002,304
Ladbroke Group plc .................... 64,000 257,163
National Westminster Bank plc ......... 179,000 3,451,815
Rank Group plc ........................ 30,000 115,554
Reed International plc ................ 155,000 1,212,106
Rio Tinto plc (Registered) ............ 45,000 523,360
Rolls-Royce plc ....................... 34,000 140,861
Safeway plc ........................... 81,000 407,008
Shell Transport & Trading Co.,
plc (Registered) .................... 319,000 1,959,847
Smith (David S) Holdings plc .......... 38,000 67,019
SmithKline Beecham plc ................ 203,800 2,848,358
Tesco plc ............................. 211,000 601,207
Tomkins plc ........................... 183,000 863,208
</TABLE>
53
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ---------------
<S> <C> <C>
Unilever plc ...................... 26,000 $ 291,571
United News & Media plc ........... 63,000 552,411
------------
TOTAL UNITED KINGDOM ............ 24,948,710
------------
TOTAL COMMON STOCKS, RIGHTS
AND WARRANTS (91.1%)
(Cost $113,562,480) ............. 122,598,372
------------
PREFERRED STOCKS:
AUSTRALIA & NEW ZEALAND (0.1%)
AUSTRALIA (0.1%)
News Corp., Ltd. .................. 29,286 178,193
------------
OTHER EUROPEAN COUNTRIES (0.5%)
GERMANY (0.5%)
Fielmann AG ....................... 420 18,902
Fresenius AG ...................... 750 157,516
Hornbach Holding AG ............... 1,560 93,141
SAP AG (Non Voting) ............... 826 396,272
------------
TOTAL OTHER EUROPEAN COUNTRIES 665,831
------------
TOTAL PREFERRED STOCKS (0.6%)
(Cost $813,946) ................. 844,024
------------
TOTAL INVESTMENTS (91.7%)
(Cost $114,376,426).............. 123,442,396
OTHER ASSETS
LESS LIABILITIES (8.3%) ......... 11,210,941
------------
NET ASSETS (100%) ................. $134,653,337
============
</TABLE>
<TABLE>
<S> <C> <C>
MARKET SECTOR DIVERSIFICATION (Unaudited)
As a Percentage of Total Common and Preferred Stock
Basic Materials ............................. 1.7%
Business Services ........................... 5.0
Capital Goods ............................... 7.9
Consumer Cyclicals .......................... 12.8
Consumer Non-Cyclicals ...................... 24.8
Banks ..................................... 14.1
Financial Services ........................ 3.7
Insurance ................................. 2.8
Real Estate ............................... 1.1
Utility-Electric .......................... 1.9
Utility-Gas ............................... 0.1
Utility-Telephone ......................... 6.3
----
Credit Sensitive ............................ 30.0
Diversified ................................. 2.0
Energy ...................................... 9.6
Technology .................................. 6.2
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing
+ Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1998 these securities amounted to $48,964 or
0.04% of net assets
(SS.) Illiquid security: is not actively traded.
<PAGE>
Glossary:
ADR--American Depositary Receipt
ADS--American Depositary Share
CPO--Certificate of Participation
FDR--Fiduciary Depositary Receipt
GDR--Global Depositary Receipt
Block-Shares represent each of the 12 holding companies that were formed
following the September 21, 1998 break-up of Telebras S.A.
Installment Receipts: Transaction with a set contract price, paid in
installments over a period of time. Gains or losses are generally taxable on
a prorated basis.
54
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $67,710,955
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 21,896,098
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 17,681,488
Aggregate gross unrealized depreciation ......... (9,482,380)
------------
Net unrealized appreciation ..................... $ 8,199,108
============
Federal income tax cost of investments .......... $115,243,288
============
</TABLE>
At December 31, 1998 the Portfolio had loaned securities with a total value of
$1,659,316, which was secured by collateral of $1,750,200.
For the period from January 1, 1998 to December 31, 1998 the Portfolio incurred
approximately $165, $155, $326, $1,978 and $5,249 as brokerage commissions with
Donaldson, Lufkin and Jenrette Securities Corp., Ord Minnett Group Ltd., Ord
Minnett-New Zealand-Ltd., Jardin Fleming Securities Ltd. and Robert Fleming
Co., respectively, both an affiliated broker/dealer.
The Portfolio has a net capital loss carryforward of $946,431 which expires in
the year 2006.
See Notes to Financial Statements.
55
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (9.1%)
PAPER (6.1%)
Caraustar Industries, Inc. ........... 182,300 $5,206,944
Wausau-Mosinee Paper Corp. ........... 282,200 4,991,412
----------
10,198,356
----------
STEEL (3.0%)
Inland Steel Industries, Inc. ........ 103,532 1,747,103
Texas Industries, Inc. ............... 28,100 756,944
Universal Stainless & Alloy
Products, Inc.* .................... 336,700 2,525,250
----------
5,029,297
----------
TOTAL BASIC MATERIALS .............. 15,227,653
----------
BUSINESS SERVICES (9.0%)
PRINTING, PUBLISHING,
BROADCASTING (2.0%)
John H. Harland Co. .................. 208,200 3,292,162
----------
PROFESSIONAL SERVICES (2.0%)
Standex International Corp. .......... 126,000 3,307,500
----------
TRUCKING, SHIPPING (5.0%)
Landstar System, Inc.* ............... 106,231 4,328,913
M.S. Carriers* ....................... 125,400 4,130,363
----------
8,459,276
----------
TOTAL BUSINESS SERVICES ............ 15,058,938
----------
CAPITAL GOODS (16.4%)
BUILDING & CONSTRUCTION (8.9%)
Avondale Industries, Inc.* ........... 159,100 4,613,900
Cavalier Homes, Inc. ................. 534,400 6,078,800
Walter Industries, Inc.* ............. 274,900 4,209,406
----------
14,902,106
----------
BUILDING MATERIALS & FOREST
PRODUCTS (1.4%)
Juno Lighting, Inc. .................. 70,154 1,639,850
Justin Industries, Inc. .............. 53,100 696,937
----------
2,336,787
----------
ELECTRICAL EQUIPMENT (1.2%)
Exar Corp.* .......................... 69,500 1,120,688
Pameco Corp.* ........................ 72,468 837,911
----------
1,958,599
----------
MACHINERY (4.9%)
Gardner Denver, Inc.* ................ 119,982 1,769,735
Graco, Inc. .......................... 56,500 1,666,750
Regal-Beloit Corp. ................... 50,119 1,152,737
Watts Industries, Inc., Class A ...... 222,400 3,697,400
----------
8,286,622
----------
TOTAL CAPITAL GOODS ................ 27,484,114
----------
CONSUMER CYCLICALS (14.7%)
AUTO RELATED (3.3%)
Superior Industries
International, Inc. ................ 196,218 5,457,313
----------
HOUSEHOLD FURNITURE,
APPLIANCES (6.5%)
Heilig-Meyers Co. .................... 246,887 1,651,057
Home Products
International, Inc.* ............... 426,600 4,239,337
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
La-Z-Boy, Inc. ....................... 282,300 $5,028,469
----------
10,918,863
----------
LEISURE RELATED (3.9%)
Central Garden & Pet Co.* ............ 186,087 2,675,000
SCP Pool Corp.* ...................... 253,600 3,835,700
----------
6,510,700
----------
RETAIL--GENERAL (1.0%)
Fingerhut Cos., Inc. ................. 110,550 1,706,616
----------
TOTAL CONSUMER CYCLICALS ........... 24,593,492
----------
CONSUMER NON-CYCLICALS (7.3%)
CONTAINERS (2.0%)
Gaylord Container Corp.,
Class A* ........................... 538,833 3,300,352
----------
FOODS (2.2%)
Vlasic Foods International, Inc.* 155,725 3,708,202
----------
RETAIL--FOODS (3.1%)
Ryan's Family Steak
Houses, Inc.* ...................... 414,700 5,131,912
----------
TOTAL CONSUMER NON-CYCLICALS 12,140,466
----------
CREDIT SENSITIVE (34.5%)
BANKS (7.8%)
Century Bancorp, Inc., Class A ....... 150,100 2,739,325
Prosperity Bancshares, Inc.* ......... 82,700 1,023,413
Quaker City Bancorp, Inc.* ........... 271,521 4,344,336
Riggs National Corp.
(Washington D.C.) .................. 76,400 1,551,875
Texas Regional Bancshares, Inc.,
Class A ............................ 138,325 3,466,770
----------
13,125,719
----------
FINANCIAL SERVICES (0.2%)
D & N Financial Corp. ................ 14,300 337,838
Metris Cos., Inc. .................... 7 331
----------
338,169
----------
INSURANCE (13.9%)
Chartwell Re Corp. ................... 63,398 1,505,702
Commerce Group, Inc. ................. 118,700 4,206,431
Delphi Financial Group, Inc.,
Class A* ........................... 93,191 4,886,703
HCC Insurance Holdings, Inc. ......... 123,921 2,184,108
National Western Life Insurance
Co., Class A* ...................... 45,700 5,369,750
Terra Nova Bermuda Holdings
Ltd., Class A ...................... 203,000 5,125,750
----------
23,278,444
----------
REAL ESTATE (3.4%)
U.S. Restaurant Properties, Inc. ..... 65,100 1,582,744
Weeks Corp. .......................... 56,500 1,592,594
Western Water Co.* ................... 494,450 2,534,056
----------
5,709,394
----------
UTILITY--ELECTRIC (9.2%)
Commonwealth Energy System ........... 105,100 4,256,550
Idacorp, Inc. ........................ 121,500 4,396,781
Public Service Co. of New
Mexico, Inc. ....................... 178,400
3,646,050
</TABLE>
56
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- --------------
<S> <C> <C>
UniSource Energy Corp.* ............ 226,900 $ 3,063,150
------------
15,362,531
------------
TOTAL CREDIT SENSITIVE ........... 57,814,257
------------
ENERGY (0.5%)
OIL--SUPPLIES &
CONSTRUCTION (0.5%)
Varco International, Inc.* ......... 108,798 843,184
------------
TECHNOLOGY (4.2%)
ELECTRONICS (2.8%)
Cerprobe Corp.* .................... 97,000 1,303,437
UNOVA, Inc.* ....................... 187,500 3,398,438
------------
4,701,875
------------
OFFICE EQUIPMENT SERVICES (1.4%)
Informix Corp.* .................... 241,867 2,388,437
------------
TOTAL TECHNOLOGY ................. 7,090,312
------------
TOTAL COMMON STOCKS (95.7%)
(Cost $159,756,230) ........... 160,252,416
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (4.3%)
State Street Bank & Trust 4.80%
dated 12/31/98, due 1/04/99, to
be repurchased at $7,218,848,
collateralized by $7,130,000 of
U.S. Treasury Notes, 6.375%
due 05/15/00, valued at
$7,348,184 (Cost $7,215,000) ......... $7,215,000 7,215,000
---------
<PAGE>
TOTAL INVESTMENTS (100.0%)
(Cost $166,971,230) .................. 167,467,416
OTHER ASSETS
LESS LIABILITIES (0.0%) .............. 25,837
-----------
NET ASSETS (100%) ...................... $167,493,253
============
</TABLE>
- ----------
* Non-income producing
57
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $226,120,369
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 155,856,240
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal Income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 11,869,444
Aggregate gross unrealized depreciation ......... (12,824,997)
-------------
Net unrealized depreciation ..................... $ (955,553)
=============
Federal income tax cost of investments .......... $ 168,422,969
=============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$1,767,844 which was secured by collateral of
$1,805,000.
The Portfolio has a net capital loss carryforward of $14,217,667 which expires
in the year 2006.
See Notes to Financial Statements.
58
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
COMMON STOCKS AND RIGHTS:
AFRICA AND THE MIDDLE EAST (14.5%)
EGYPT (1.3%)
Al-Ahram Beverages Co.
(GDR)* ............................. 2,046 $ 59,102
Al-Ahram Beverages Co.
(GDR)* ............................. 2,560 72,640
Eastern Tobacco ...................... 4,400 101,264
Egypt Gas Co. ........................ 1,000 74,194
Egyptian Financial & Industrial
Co. ................................ 3,226 53,357
Industrial Engineering
Enterprises ........................ 2,890 40,892
Madinet Nasr Housing &
Development ........................ 1,035 31,244
Paints & Chemical Industries Co.
(GDR) .............................. 11,300 67,800
Suez Cement Co. ...................... 250 3,768
Suez Cement Co. (GDR) ................ 3,400 48,620
---------
552,881
---------
ISRAEL (6.0%)
Bank Hapoalim Ltd. ................... 56,800 102,907
Bezeq the Israeli Telecom Corp.,
Ltd.* .............................. 31,760 99,264
Comverse Technology, Inc.* ........... 5,505 390,855
ECI Telecommunications Ltd. .......... 10,356 368,932
Elron Electronic Industries Ltd. ..... 2,637 42,193
First International Bank of Israel,
Class 5 ............................ 7,647 37,902
Gilat Satellite Networks Ltd.* ....... 710 39,139
Koor Industries Ltd. (ADR) ........... 26,100 455,119
Nice Systems Ltd.* ................... 551 11,932
Nice Systems Ltd. (ADR)* ............. 5,610 121,316
Orbotech Ltd.* ....................... 5,880 278,565
Orckit Communications Ltd.* .......... 1,370 22,177
Super-Sol Ltd. ....................... 3,288 8,172
Super-Sol Ltd. (ADR) ................. 18,540 227,115
Tadiran Telecommunications Ltd. 3,966 75,850
Teva Pharmaceutical Industries
(ADR) .............................. 5,380 218,899
---------
2,500,337
---------
SOUTH AFRICA (5.1%)
Amalgamated Banks of South
Africa Group Ltd. .................. 42,638 201,961
Bidvest Group Ltd. ................... 43,353 314,278
BOE Corp., Ltd., Class N ............. 399,539 227,232
BOE Ltd. ............................. 80,346 51,970
Comparex Holdings Ltd. ............... 14,429 117,093
Education Investment Corp., Ltd. 63,800 73,654
Ellerine Holdings Ltd. ............... 43,380 93,532
FirstRand Ltd. ....................... 106,000 115,533
Liberty Life Association of
Africa Ltd. ........................ 8,500 116,888
Morgan Stanley Africa
Investment Fund, Inc.++ ............ 1,700 14,237
Nedcor Ltd. .......................... 5,840 99,345
New Africa Investments Ltd.,
Class N* ........................... 215,800 131,893
Primedia Ltd., Class N ............... 17,370 38,336
Rembrandt Group Ltd. ................. 30,584 186,923
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Sasol Ltd. ........................... 34,340 $ 129,717
South African Breweries Ltd. ......... 9,400 158,150
Woolworths Holdings Ltd. ............. 71,640 35,271
---------
2,106,013
---------
TURKEY (1.8%)
Ege Biracilik ve Malt Sanayii
A.S. ............................... 1,566,000 121,622
Erciyas Biracilik ve Malt Sanayii
A.S. ............................... 476,000 31,687
Migros Turk A.S. ..................... 57,000 56,917
Petrol Ofisi A.S. .................... 357,359 48,145
Vestel Elektronik Sanayi Ve
Ticaret A.S.* ...................... 2,200,048 181,327
Yapi Ve Kredi Bankasi A.S. ........... 25,320,121 292,964
---------
732,662
---------
ZIMBABWE (0.3%)
Delta Corp., Ltd. .................... 150,000 32,648
Meikles Africa Ltd. .................. 134,625 75,390
---------
108,038
---------
TOTAL AFRICA AND THE
MIDDLE EAST ..................... 5,999,931
---------
LATIN AMERICA (20.7%)
ARGENTINA (1.8%)
Telecom Argentina (ADR) .............. 18,005 495,137
Telefonica de Argentina (ADR) ........ 3,956 110,521
YPF S.A., Class D (ADR) .............. 4,384 122,478
---------
728,136
---------
BRAZIL (7.0%)
Brahma ............................... 141,400 61,791
Brahma (ADR) ......................... 10,010 94,469
CEMIG ................................ 19,290,019 367,201
CEMIG (ADR) .......................... 7,616 144,983
Cia Vale do Rio Doce (ADR) ........... 1,865 23,926
Coteminas ............................ 359,200 38,648
Coteminas (ADR)+ ..................... 1,155 5,458
CRT, Class A ......................... 1,828,313 658,238
Embratel Participacoes* .............. 5,144,220 70,250
Lojas Arapua S.A.* ................... 1,248,000 330
Pao de Acucar (ADR) .................. 3,665 56,807
Petrobras S.A. ....................... 203,819 23,111
Renner S.A.* ......................... 1,829,000 1,287
Tele Celular S.A.* ................... 15,103,220 25,500
Tele Celular S.A. (ADR)* ............. 520 9,067
Tele Centro S.A.* .................... 12,833,220 111,418
Tele Centro S.A. (ADR)* .............. 662 27,680
Tele Leste Celular S.A.* ............. 19,919,220 11,540
Tele Nordeste Celular S.A.* .......... 11,620,220 10,579
Tele Nordeste Celular S.A.
(ADR)* ............................. 435 8,047
Tele Norte Celular S.A.* ............. 4,344,220 2,013
Tele Norte Leste S.A.* ............... 4,344,220 54,292
Tele Sudeste Celular S.A.* ........... 14,803,220 62,484
Tele Sudeste Celular S.A.
(ADR)* ............................. 174 3,600
Telebras S.A. ........................ 4,344,220 503
Telebras S.A. (ADR) (Block)* ......... 3,856 280,283
Telemig Celular S.A.* ................ 21,155,220 23,462
Telemig Celular S.A. (ADR)* .......... 555 11,794
Telerj Celular S.A., Class B* ........ 456,000 10,756
</TABLE>
59
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Telesp Celular S.A.* .............. 9,807,220 $ 72,240
Telesp Celular S.A. (ADR)* ........ 124 2,170
Telesp Celular S.A., Class B* ..... 4,486,000 197,150
Telesp S.A.* ...................... 1,279,066 29,112
Unibanco (GDR) .................... 14,480 209,055
USIMINAS S.A. ..................... 12,900 28,507
USIMINAS S.A. (ADR) ............... 2,300 5,140
Vale do Rio Doce, Class A ......... 11,971 153,570
---------
2,896,461
---------
CHILE (1.0%)
CCU S.A. (ADR) .................... 5,562 107,069
Endesa S.A. (ADR) ................. 6,608 75,166
Enersis S.A. (ADR) ................ 8,865 228,828
Santa Isabel S.A. (ADR) ........... 931 6,168
---------
417,231
---------
MEXICO (10.5%)
Alfa S.A., Class A ................ 25,059 70,635
Cemex S.A. (ADR) .................. 10,990 48,007
Cemex S.A. (CPO) .................. 85,101 183,563
Cemex S.A., Class B ............... 15,650 38,659
Cemex S.A., Class B (ADR) ......... 16,521 81,688
Cifra S.A., Class C* .............. 41,898 51,134
Cifra S.A., Class V ............... 54,675 66,286
Cifra S.A., Class V (ADR) ......... 5,240 63,581
Desc S.A. (ADR) ................... 1,907 36,591
Fomento Economico Mexicano
S.A. (ADR) ...................... 14,068 374,560
Fomento Economico Mexicano
S.A. (UBD Unit) ................. 243,453 660,407
Grupo Carso S.A., Series A1 ....... 34,165 115,977
Grupo Financeiro Banamex,
Class B* ........................ 110,129 144,421
Grupo Financerio Bancomer,
Class B ......................... 117,299 25,124
Grupo Financiero Bancomer
(ADR)+ .......................... 8,155 34,659
Grupo Televisa S.A. (GDR)* ........ 33,910 837,153
Kimberly Clark de Mexico,
Class A ......................... 122,103 387,971
Telmex, Class L (ADR) ............. 22,044 1,073,267
Tubo de Acero de Mexico S.A.
(ADR) ........................... 3,460 22,274
TV Azteca S.A. (ADR) .............. 3,930 26,282
Vitro S.A. (ADR) .................. 3,700 16,881
---------
4,359,120
---------
VENEZUELA (0.4%)
CANTV (ADR) ....................... 8,499 151,388
---------
TOTAL LATIN AMERICA ............. 8,552,336
---------
OTHER EUROPEAN COUNTRIES (16.4%)
CROATIA (0.2%)
Pliva d.d. (ADR)+ ................. 3,430 56,938
Pliva d.d. (GDR) (Registered) ..... 790 13,114
---------
70,052
---------
CZECH REPUBLIC (0.4%)
SPT Telecom A.S.* ................. 6,248 95,481
SPT Telecom A.S. (GDR)* ........... 4,140 61,479
---------
156,960
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
GREECE (7.9%)
Alpha Credit Bank ................. 990 $ 103,358
Attica Enterprises S.A. ........... 5,470 49,056
Hellenic Bottling Co. S.A. ........ 3,780 116,757
Hellenic Telecommunication
Organization S.A. ............... 48,785 1,298,586
Hellenic Telecommunication
Organization S.A. (ADR)* ........ 56,987 755,078
Heracles General Cement Co.,
S.A. ............................ 720 19,551
Ionian Bank S.A.* ................. 1,720 91,230
National Bank of Greece S.A. ...... 2,810 632,521
Panafon Hellenic Telecom S.A.
(GDR)* .......................... 2,410 62,841
STET Hellas
Telecommunications S.A.
(ADR)* .......................... 2,450 79,319
Titan Cement Co., S.A. ............ 710 54,541
---------
3,262,838
---------
HUNGARY (3.9%)
Matav Rt. ......................... 24,603 140,136
Matav Rt (ADR) .................... 13,026 388,338
MOL Magyar Olaj-es Gazipari
Rt. ............................. 5,260 143,718
MOL Magyar Olaj-es Gazipari
Rt. (GDR) (Registered) .......... 24,692 682,116
OTP Bank Rt. ...................... 3,350 167,252
OTP Bank Rt. (GDR) ................ 2,160 106,920
---------
1,628,480
---------
POLAND (3.3%)
Bank Handlowy W Warszawie ......... 2,340 28,867
Bank Handlowy W Warszawie
(GDR) ........................... 2,740 33,802
Bank Rozwoju Eksport S.A. ......... 2,671 61,639
Bank Slaski S.A. .................. 1,381 71,607
Big Bank Gdanski S.A. ............. 50,253 45,099
Big Bank Gdanski S.A. (GDR) ....... 7,745 104,945
Debica S.A. ....................... 501 7,422
Elektrim S.A. ..................... 27,980 302,917
Exbud S.A. (GDR)* ................. 8,275 71,436
Powszechny Bank Kredytowy
S.A. ............................ 985 21,047
Prokom Software (GDR) ............. 8,740 160,379
Telekomunikacja Polska S.A.
(GDR)* .......................... 82,610 421,311
Wielkopolski Bank Kredytowy
S.A. ............................ 3,788 23,850
---------
1,354,321
---------
RUSSIA (0.7%)
LUKoil Holding (ADR) .............. 7,700 123,200
Mosenergo (ADR) ................... 3,900 7,456
RAO Unified Energy Systems
(ADR) ........................... 1,700 5,286
RAO Unified Energy Systems
(GDR) ........................... 10,990 34,169
Rostelecom (ADR) .................. 4,100 17,169
</TABLE>
60
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Surgutneftgaz (ADR) ...................... 25,910 $ 87,446
Vimpel Communications (ADR)* 2,540 32,861
----------
307,587
----------
TOTAL OTHER EUROPEAN
COUNTRIES ........................... 6,780,238
----------
SOUTHEAST ASIA (27.8%)
CHINA (1.3%)
Huaneng Power International,
Inc. (ADR)* ............................ 10,105 146,522
Yanzhou Coal Mining Co., Ltd.
(ADR) .................................. 15,240 115,253
Zhejiang Expressway Co., Ltd.,
Class H ................................ 622,500 126,151
Zhenhai Refining and Chemical
Co., Ltd. .............................. 936,000 143,772
----------
531,698
----------
HONG KONG (0.4%)
China Telecom Ltd. ....................... 104,000 179,883
----------
INDONESIA (1.6%)
Gudang Garam ............................. 194,300 282,949
Indah Kiat Pulp & Paper Co. .............. 543,300 147,710
Telekomunikasi (ADR) ..................... 19,100 124,150
Telekomunikasi, Class B .................. 346,000 116,775
----------
671,584
----------
KOREA (12.2%)
Hankuk Glass Industries Co.,
Inc. ................................... 8,000 166,916
Korea Electric Power Corp. ............... 36,020 892,266
Pohang Iron & Steel Co., Ltd. ............ 20,270 1,279,702
S1 Corp. ................................. 1,824 341,147
Samsung Electronics ...................... 21,286 1,427,914
Samsung Electronics (GDR)+ ............... 31,600 477,950
Samsung Electronics New
(GDR)+ ................................. 5,934 218,075
SK Telecom Co., Ltd. ..................... 310 234,123
----------
5,038,093
----------
MALAYSIA (1.4%)
Genting Bhd. (SS.) ....................... 24,800 37,680
Kuala Lumpur Kepong Bhd. (SS.) ... ....... 40,000 47,882
Nestle (Malaysia) Bhd. (SS.) ............. 14,000 39,190
Petronas Gas Bhd. (SS.) .................. 46,000 72,854
Rothmans of Pall Mall Bhd. (SS.) ......... 19,000 78,379
Technology Resources Industries
Bhd. (SS.) ............................. 4,000 1,459
Telekom Malaysia Bhd. (SS.) .............. 108,000 198,895
Tenaga Nasional Bhd. (SS.) ............... 79,000 113,481
----------
589,820
----------
PHILIPPINES (1.6%)
Manila Electronics Co., Class B .......... 55,430 178,117
Philippine Long Distance
Telephone Co. .......................... 405 10,411
Philippine Long Distance
Telephone Co. (ADR) .................... 5,900 153,031
San Miguel Corp., Class B ................ 109,720 211,542
SM Prime Holdings, Inc. .................. 618,670 117,691
----------
670,792
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
SINGAPORE (0.2%)
Want Want Holding Ltd. ................... 59,000 $ 70,800
----------
TAIWAN (7.0%)
Arima Computer Corp.* .................... 16,000 83,426
Asustek Computer, Inc. (GDR)* 40,608 356,335
Compal Electronics, Inc.* ................ 71,000 231,378
Compal Electronics, Inc.
(Rights)* .............................. 170 --
Compeq Manufacturing Co.,
Ltd.* .................................. 31,000 203,011
Far East Textile Ltd. .................... 93,000 75,912
Hon Hai Precision Industry* .............. 125,000 690,565
President Chain Store Corp. .............. 63,000 198,464
Siliconware Precision Industries
Co. (GDR)* ............................. 172,000 304,283
Taiwan Semiconductor
Manufacturing Co.* ..................... 219,000 482,588
Taiwan Semiconductor
Manufacturing Co. (ADR)* ............... 19,710 279,636
----------
2,905,598
----------
THAILAND (2.1%)
Advanced Information Service
PCL (Foreign) .......................... 46,100 273,937
BEC World PLC (Foreign) .................. 23,300 128,198
Delta Electronics PCL (Foreign)........... 24,300 128,352
PTT Explorations and
Productions PCL (Foreign)* ............. 25,650 180,644
Shinawatra Computer PCL
(Foreign)* ............................. 25,000 85,970
Siam Cement Co., Ltd.
(Foreign)* ............................. 23,000 50,619
----------
847,720
----------
TOTAL SOUTHEAST ASIA ................... 11,505,988
----------
SOUTHERN CENTRAL ASIA (8.6%)
INDIA (7.4%)
Bharat Heavy Electricals Ltd. ............ 91,000 561,599
Gujarat Ambuja Cements Ltd. .............. 2,500 15,311
Hero Honda Motors Ltd.
(Dematerialized) ....................... 35,600 465,223
Hindustan Lever Ltd.
(Dematerialized) ....................... 11,250 440,685
Infosys Technologies Ltd.
(Dematerialized) ....................... 8,800 613,016
ITC Ltd. ................................. 24,000 398,399
Mahanagar Telephone Nigam
Ltd. ................................... 13,000 56,077
Morgan Stanley India Investment
Fund, Inc.*++ .......................... 11,200 75,600
NIIT Ltd. ................................ 2,500 95,582
Satyam Computer Service Ltd. ............. 11,000 188,427
Tata Engineering & Locomotive
Co., Ltd. (Dematerialized) ............. 15,500 62,079
Zee Telefilms Ltd. ....................... 7,000 105,486
----------
3,077,484
----------
PAKISTAN (1.2%)
Fauji Fertilizer Co., Ltd. ............... 125,300 104,420
Hub Power Co. ............................ 355,000 82,681
</TABLE>
61
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- -------------
<S> <C> <C>
Pakistan Telecommunications
Corp. (GDR)+ ........................ 2,700 $ 104,923
Pakistan Telecommunications
Corp. (GDR) ......................... 4,429 152,801
Pakistan Telecommunications
Corp., Class A ...................... 81,300 28,107
Sui Northern Gas Pipelines* ........... 3,500 573
-----------
473,505
-----------
TOTAL SOUTHERN CENTRAL ASIA ......... 3,550,989
-----------
TOTAL COMMON STOCKS AND
RIGHTS: (88.0%)
(Cost $38,914,579) .................. 36,389,482
-----------
TOTAL INVESTMENTS (88.0%)
(Cost $38,914,579) .................. 36,389,482
OTHER ASSETS
LESS LIABILITIES (12.0%) ............ 4,969,740
-----------
NET ASSETS (100.0%) ................... $41,359,222
===========
</TABLE>
<TABLE>
<CAPTION>
MARKET SECTOR DIVERSIFICATION (Unaudited)
<S> <C> <C>
As a Percentage of Total Common Stocks and Rights
Basic Materials ..................... 6.1%
Business Services ................... 4.3
Capital Goods ....................... 4.2
Consumer Cyclicals .................. 3.5
Consumer Non-Cyclicals .............. 10.0
Credit Sensitive .................... 24.1
Diversified ......................... 4.8
Energy .............................. 4.5
Technology
Electronics ....................... 13.8
Office Equipment .................. 4.7
Office Equipment Services ......... 2.2
Telecommunications ................ 17.8
----
Total Technology .................... 38.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing
+ Security exempt from registration under rule 144A of the Securities Act
of 1933, as amended. These securities may only be resold to qualified
institutional buyers. At December 31, 1998 these securities amounted to
$898,003 or 2.17% of net assets.
++ The security is advised by the same advisor as the portfolio.
(SS.) Illiquid security: is not actively traded
# Securities (totaling $589,820 or 1.4% of net assets) valued at fair value.
Glossary:
ADR--American Depositary Receipt
CPO--Certificate of Participation
GDR--Global Depositary Receipt
UBD Unit--each unit represents 1 B share, 2 D-B shares and 2 D-L shares.
Block-Shares represent each of the 12 holding companies that were formed
following the September 21, 1998 break-up of Telebras S.A.
Dematerialized--Securities changed from paper to electronic format
62
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Swap Agreements:
The Portfolio had the following Total Return Swap Agreement open at
December 31, 1998:
<TABLE>
<CAPTION>
NOTIONAL UNREALIZED
AMOUNT DESCRIPTION APPRECIATION
- ---------- --------------------------------------------------- -------------
<S> <C> <C>
$195,597 Agreement with Goldman Sachs International $6,099
terminating March 8, 1999 for the Portfolio to pay
3 month USD-LIBOR plus 2.00% and to receive
the THB SET Index converted into USD at the
mid-market rate on March 30, 1999. (SS.)
</TABLE>
(SS.) Security: is not actively traded.
Glossary:
LIBOR--London Interbank Offer Rate
THB--Thai Baht
USD--U.S. Dollar
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ---------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Czech Republic Koruna, expiring 1/4/99 ........... 285 $ 9,523 $ 9,506 $ (17)
Greek Drachma, expiring 1/5/99 ................... 12,970 45,814 46,341 527
South Korean Won, expiring 1/4/99 ................ 203,742 168,689 169,362 673
Malaysian Ringgit, expiring 2/11/99 .............. 1,513 335,144 278,581 (56,563)
South African Rand, expiring 6/21/99 ............. 1,975 306,328 318,305 11,977
FOREIGN CURRENCY SELL CONTRACTS
South Korean Won, expiring 1/4/99-1/7/99 ......... 643,152 421,000 534,543 (113,543)
Malaysian Ringgit, expiring 2/11/99 .............. 1,513 335,144 278,581 56,563
South African Rand, expiring 6/21/99 ............. 1,975 336,000 318,305 17,695
----------
$ (82,688)
==========
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $59,278,473
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 30,738,909
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal Income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 2,927,664
Aggregate gross unrealized depreciation .......... (7,754,695)
------------
Net unrealized depreciation ...................... $ (4,827,031)
============
Federal income tax cost of investments ........... $ 41,216,513
============
</TABLE>
For the period from January 1, 1998 to December 31, 1998, the Portfolio
incurred approximately $596 as brokerage commissions with Morgan Stanley & Co.,
Inc., an affiliated broker/dealer.
The Portfolio has a net capital loss carryforward of $6,887,145, of which
$70,373 expires in the year 2005 and $6,816,772 expires in the year 2006.
See Notes to Financial Statements.
63
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (2.7%)
CHEMICALS (1.5%)
Dow Chemical Co. ..................... 5,200 $ 472,875
E.I. Du Pont de Nemours & Co. 23,600 1,252,275
Ecolab, Inc. ......................... 1,600 57,900
FMC Corp.* ........................... 200 11,200
Great Lakes Chemical Corp. ........... 800 32,000
Hercules, Inc. ....................... 1,300 35,587
Monsanto Co. ......................... 13,600 646,000
NACCO Industries, Inc. Class A ....... 100 9,200
PPG Industries, Inc. ................. 4,400 256,300
Perkin-Elmer Corp. ................... 1,400 136,588
Rohm & Haas Co. ...................... 4,000 120,500
Sealed Air Corp.* .................... 2,107 107,589
Union Carbide Corp.
Holding Co. ........................ 3,500 148,750
------------
3,286,764
------------
CHEMICALS--SPECIALTY (0.1%)
Eastman Chemical Co. ................. 1,100 49,225
Engelhard Corp. ...................... 1,500 29,250
Morton International, Inc. ........... 2,000 49,000
Nalco Chemical Co. ................... 400 12,400
Praxair, Inc. ........................ 3,300 116,325
Sigma Aldrich Corp. .................. 2,300 67,563
W.R. Grace & Co.* .................... 700 10,981
------------
334,744
------------
METALS & MINING (0.6%)
ASARCO, Inc. ......................... 400 6,025
Barrick Gold Corp. ................... 9,600 187,200
Cyprus Amax Minerals Co. ............. 400 4,000
Freeport McMoran Copper &
Gold, Inc., Class B ................ 800 8,350
Homestake Mining Co. ................. 4,500 41,344
Inco Ltd. ............................ 3,300 34,856
Minnesota Mining &
Manufacturing Co. .................. 9,200 654,350
Newmont Mining Corp. ................. 3,900 70,444
Owens-Illinois, Inc.* ................ 3,000 91,875
Phelps Dodge Corp. ................... 1,900 96,662
Placer Dome, Inc. .................... 6,500 74,750
Reynolds Metals Co. .................. 1,700 89,569
Worthington Industries, Inc. ......... 700 8,750
------------
1,368,175
------------
PAPER (0.4%)
Fort James Corp. ..................... 5,300 212,000
Georgia-Pacific Corp. ................ 2,400 140,550
Ikon Office Solutions, Inc. .......... 2,800 23,975
International Paper Co. .............. 6,900 309,206
Louisiana-Pacific Corp. .............. 2,900 53,106
Mead Corp. ........................... 1,400 41,037
Temple-Inland, Inc. .................. 700 41,519
Union Camp Corp. ..................... 1,700 114,750
Westvaco Corp. ....................... 1,100 29,494
Willamette Industries, Inc. .......... 1,400 46,900
------------
1,012,537
------------
STEEL (0.1%)
Nucor Corp. .......................... 1,600 69,200
Timken Co. ........................... 600 11,325
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
USX-U.S. Steel Group, Inc. ........... 3,000 $ 69,000
------------
149,525
------------
TOTAL BASIC MATERIALS .............. 6,151,745
------------
BUSINESS SERVICES (2.8%)
ENVIRONMENT CONTROL (0.5%)
Browning--Ferris Industries, Inc...... 4,500 127,969
Danaher Corp. ........................ 3,400 184,663
Pall Corp. ........................... 3,500 88,594
Pioneer Hi-Bred International,
Inc. ............................... 3,000 81,000
Waste Management, Inc. ............... 11,772 548,869
------------
1,031,095
------------
PRINTING, PUBLISHING,
BROADCASTING (1.9%)
Clear Channel
Communications, Inc.* .............. 6,100 332,450
Donnelley (R.R.) & Sons Co. .......... 2,000 87,625
Dow Jones & Co., Inc. ................ 1,200 57,750
Harcourt General, Inc. ............... 300 15,956
Interpublic Group, Inc. .............. 2,700 215,325
King World Productions, Inc.* ........ 400 11,775
Knight Ridder, Inc. .................. 2,400 122,700
McGraw Hill Cos., Inc. ............... 2,400 244,500
MediaOne Group, Inc.* ................ 13,600 639,200
New York Times Co., Class A .......... 4,400 152,625
Omnicom Group, Inc. .................. 3,100 179,800
Polaroid Corp. ....................... 2,000 37,375
Time Warner, Inc. .................... 23,400 1,452,263
Times Mirror Co., Class A ............ 1,500 84,000
Tribune Co. .......................... 3,100 204,600
Viacom, Inc., Class B* ............... 6,300 466,200
------------
4,304,144
------------
PROFESSIONAL SERVICES (0.3%)
Pitney Bowes, Inc. ................... 6,500 429,406
Service Corp. International .......... 5,700 216,956
------------
646,362
------------
TRUCKING, SHIPPING (0.1%)
FDX Corp.* ........................... 3,580 318,620
Laidlaw, Inc. ........................ 3,800 38,237
------------
356,857
------------
TOTAL BUSINESS SERVICES ............ 6,338,458
------------
CAPITAL GOODS (6.0%)
AEROSPACE (1.1%)
Aeroquip-Vickers, Inc. ............... 600 17,962
B.F. Goodrich Co. .................... 2,100 75,337
Boeing Co. ........................... 20,700 675,338
General Dynamics Corp. ............... 2,800 164,150
Lockheed Martin Corp. ................ 4,700 398,325
Northrop Grumman Corp. ............... 1,800 131,625
Parker-Hannifin Corp. ................ 2,100 68,775
Raytheon Co., Class B ................ 8,000 426,000
United Technologies Corp. ............ 4,700 511,125
------------
2,468,637
------------
BUILDING & CONSTRUCTION (0.5%)
Alcan Aluminum Ltd. .................. 5,500 148,844
Allegheny Teledyne, Inc. ............. 3,900 79,706
Aluminum Company of America .......... 3,400 253,513
</TABLE>
64
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Armstrong World Industries, Inc. ... 800 $ 48,250
Eaton Corp. .......................... 2,000 141,375
Fleetwood Enterprises, Inc. .......... 100 3,475
Fluor Corp. .......................... 1,800 76,612
Kaufman & Broad Home Corp. ........... 600 17,250
Masco Corp. .......................... 8,400 241,500
Pulte Corp. .......................... 700 19,469
Snap-On, Inc. ........................ 1,300 45,256
The Stanley Works .................... 2,000 55,500
------------
1,130,750
------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.4%)
Bethlehem Steel Corp* ................ 1,500 12,562
Black & Decker Corp. ................. 1,800 100,913
Boise Cascade Corp. .................. 500 15,500
Champion International Corp. ......... 2,400 97,200
Lowe's Cos. , Inc. ................... 7,900 404,381
Owens Corning ........................ 500 17,719
Weyerhaeuser Co. ..................... 4,600 233,738
------------
882,013
------------
ELECTRICAL EQUIPMENT (3.3%)
Cooper Industries, Inc. .............. 2,700 128,756
General Electric Co. ................. 70,000 7,144,375
Honeywell, Inc. ...................... 3,200 241,000
------------
7,514,131
------------
MACHINERY (0.7%)
Case Corp. ........................... 2,400 43,625
Caterpillar, Inc. .................... 8,400 386,400
Cummins Engine, Inc. ................. 1,000 35,500
Deere & Co. .......................... 6,000 198,750
Dover Corp. .......................... 4,000 146,500
Harnischfeger Industries, Inc. ....... 500 5,094
Illinois Tool Works, Inc. ............ 5,900 342,200
Ingersol-Rand Co. .................... 4,200 197,138
McDermott International, Inc. ........ 700 17,281
SPX Corp.* ........................... 1 66
Thermo Electron Corp.* ............... 2,700 45,731
W.W. Grainger, Inc. .................. 1,100 45,787
------------
1,464,072
------------
TOTAL CAPITAL GOODS ................ 13,459,603
------------
CONSUMER CYCLICALS (9.7%)
AIRLINES (0.3%)
AMR Corp.* ........................... 4,000 237,500
Delta Airlines, Inc. ................. 2,100 109,200
Southwest Airlines Co. ............... 7,750 173,891
U.S. Air Group, Inc. ................. 1,400 72,800
------------
593,391
------------
APPAREL & TEXTILES (0.0%)
Fruit of the Loom, Inc.* ............. 1,700 23,481
------------
AUTO RELATED (0.7%)
Allied Signal, Inc. .................. 12,800 567,200
Autozone, Inc.* ...................... 2,600 85,638
Cooper Tire & Rubber Co. ............. 200 4,087
Genuine Parts Co. .................... 2,400 80,250
Goodyear Tire & Rubber Co. ........... 4,000 201,750
Johnson Controls, Inc. ............... 1,800 106,200
Paccar Inc. .......................... 1,700 69,913
Ryder System, Inc. ................... 300 7,800
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
TRW Inc. ............................. 2,300 $ 129,231
Tenneco, Inc. ........................ 4,800 163,500
Textron, Inc. ........................ 2,900 220,219
------------
1,635,788
------------
AUTOS & TRUCKS (1.2%)
Dana Corp. ........................... 4,342 177,479
Ford Motor Co. ....................... 25,100 1,473,056
General Motors Corp. ................. 14,200 1,016,188
Navistar International Corp.* ........ 700 19,950
------------
2,686,673
------------
FOOD SERVICES, LODGING (0.2%)
Darden Restaurants, Inc. ............. 1,700 30,600
Hilton Hotels Corp. .................. 5,400 103,275
Marriott International, Inc. ......... 4,500 130,500
Mirage Resorts, Inc.* ................ 5,500 82,156
------------
346,531
------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.6%)
Maytag Corp. ......................... 2,400 149,400
Unilever N.V. (NY Shares) ............ 13,600 1,127,950
Whirlpool Corp. ...................... 1,300 71,988
------------
1,349,338
------------
LEISURE RELATED (1.1%)
American Greetings
Corp., Class A ..................... 500 20,531
Brunswick Corp. ...................... 2,400 59,400
Carnival Corp. ....................... 12,800 614,400
Cendant Corp.* ....................... 19,300 367,906
Fortune Brands, Inc. ................. 3,100 98,038
Walt Disney (The) Co. ................ 43,000 1,290,000
------------
2,450,275
------------
PHOTO & OPTICAL (0.3%)
Bausch & Lomb, Inc. .................. 1,500 90,000
Eastman Kodak Co. .................... 6,700 482,400
------------
572,400
------------
RETAIL--GENERAL (5.3%)
Consolidated Stores Corp.* ........... 2,500 50,469
Costco Co., Inc.* .................... 5,100 368,156
Dayton Hudson Corp. .................. 8,900 482,825
Dillards, Inc., Class A .............. 2,200 62,425
Dollar General Corp. ................. 5,325 125,803
Federated Department Stores,
Inc.* .............................. 4,600 200,388
Fred Meyer, Inc.* .................... 3,800 228,950
GAP, Inc. ............................ 11,850 666,563
Hasbro, Inc. ......................... 1,900 68,638
Home Depot, Inc. ..................... 33,100 2,025,306
J.C. Penny Co. ....................... 6,200 290,625
K-Mart Corp.* ........................ 10,100 154,656
Kohl's Corp.* ........................ 3,800 233,462
Limited, Inc. ........................ 5,800 168,925
Liz Claiborne, Inc. .................. 1,900 59,969
Loews Corp. .......................... 2,000 196,500
Mattel, Inc. ......................... 7,300 166,531
May Department Stores Co. ............ 5,000 301,875
Newell Co. ........................... 4,300 177,375
Nike, Inc., Class B .................. 4,400 178,475
Nordstrom, Inc. ...................... 3,400 117,938
</TABLE>
65
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Reebok International Ltd.* ........... 200 $ 2,975
Sears Roebuck & Co. .................. 7,500 318,750
Sherwin-Williams Co. ................. 4,200 123,375
Staples, Inc.* ....................... 7,200 314,550
TJX Cos., Inc. ....................... 7,700 223,300
Toys-R-Us, Inc.* ..................... 4,700 79,312
VF Corp. ............................. 2,700 126,562
Wal-Mart Stores, Inc. ................ 47,400 3,860,137
Walgreen Co. ......................... 10,200 597,337
------------
11,972,152
------------
TOTAL CONSUMER CYCLICALS ........... 21,630,029
------------
CONSUMER NON-CYCLICALS (22.2%)
BEVERAGES (2.8%)
Adolf Coors Co., Class B ............. 800 45,150
Anheuser-Busch Cos., Inc. ............ 10,300 675,938
Brown-Forman Corp., Class B .......... 500 37,844
Coca Cola Co. ........................ 52,600 3,517,625
Coca Cola Enterprises, Inc. .......... 9,200 328,900
PepsiCo, Inc. ........................ 30,700 1,256,781
Seagram Co., Ltd. .................... 9,300 353,400
------------
6,215,638
------------
CONTAINERS (0.2%)
BB&T Corp. ........................... 5,300 213,656
Bemis Co., Inc. ...................... 400 15,175
Crown Cork & Seal Co., Inc. .......... 3,500 107,844
Rubbermaid, Inc. ..................... 4,100 128,894
------------
465,569
------------
DRUGS (7.6%)
Abbot Laboratories ................... 31,700 1,553,300
Allergan, Inc. ....................... 1,800 116,550
Alza Corp., Class A* ................. 2,400 125,400
American Home Products Corp. ......... 27,700 1,559,856
Amgen, Inc.* ......................... 5,800 606,462
Bristol-Myers Squibb Co. ............. 21,000 2,810,062
CVS Corp. ............................ 7,800 429,000
Centrex Corp. ........................ 1,800 81,112
IMS Health, Inc. ..................... 3,700 279,119
Merck & Co., Inc. .................... 25,400 3,751,262
Pfizer, Inc. ......................... 27,600 3,462,075
Pharmacia & Upjohn, Inc. ............. 11,500 651,187
Rite Aid Corp. ....................... 6,200 307,287
Warner Lambert Co. ................... 17,700 1,330,819
------------
17,063,491
------------
FOODS (2.4%)
Albertson's, Inc. .................... 5,800 369,387
American Stores Co. .................. 6,700 247,481
Archer Daniels Midland Co. ........... 14,340 246,469
Bestfoods ............................ 5,400 287,550
Campbell Soup Co. .................... 9,000 495,000
ConAgra, Inc. ........................ 9,500 299,250
General Mills, Inc. .................. 3,800 295,450
H.J. Heinz Co. ....................... 8,500 481,312
Hershey Foods Corp. .................. 2,200 136,812
Kellogg Co. .......................... 8,900 303,712
McDonald's Corp. ..................... 14,800 1,134,050
Quaker Oats Co. ...................... 3,500 208,250
Ralston-Ralston Purina Group ......... 5,700 184,537
Sara Lee Corp. ....................... 19,400 546,838
Supervalu, Inc. ...................... 1,800 50,400
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Wm. Wrigley Jr. Co. .................. 2,200 $ 197,037
------------
5,483,535
------------
HOSPITAL SUPPLIES &
SERVICES (4.6%)
Air Products &
Chemicals, Inc. .................... 5,800 232,000
Bard (C.R.), Inc. .................... 400 19,800
Baxter International, Inc. ........... 5,600 360,150
Becton Dickinson & Co. ............... 6,000 256,125
Biomet, Inc. ......................... 3,000 120,750
Boston Scientific Corp.* ............. 9,100 243,994
Cardinal Health, Inc. ................ 4,750 360,406
Columbia HCA Healthcare Corp. 14,500 358,875
Eli Lilly & Co. ...................... 23,300 2,070,788
Guidant Corp. ........................ 3,500 385,875
HBO & Co. ............................ 10,900 312,694
HCR Manor Care, Inc.* ................ 2,000 58,750
Healthsouth Corp.* ................... 10,200 157,463
Humana, Inc.* ........................ 2,800 49,875
Johnson & Johnson .................... 29,500 2,474,313
Mallinckrodt, Inc. ................... 1,800 55,463
Medtronic, Inc. ...................... 10,200 757,350
Schering-Plough Corp. ................ 32,200 1,779,050
St. Jude Medical, Inc.* .............. 893 24,725
Tenet Healthcare Corp.* .............. 5,600 147,000
------------
10,225,446
------------
RETAIL--FOOD (0.7%)
Kroger Co.* .......................... 6,100 369,050
Safeway, Inc.* ....................... 10,800 658,125
Sysco Corp. .......................... 5,600 153,650
Tricon Global Restaurants, Inc.* ..... 3,500 175,438
Wendy's International, Inc. .......... 3,800 82,888
Winn-Dixie Stores, Inc. .............. 2,500 112,188
------------
1,551,339
------------
SOAPS & TOILETRIES (2.5%)
Avon Products, Inc. .................. 6,300 278,775
Clorox Co. ........................... 2,500 292,031
Colgate Palmolive Co. ................ 5,900 547,963
Gillette Co. ......................... 24,600 1,188,488
International Flavors &
Fragrances, Inc. ................... 2,500 110,469
Kimberly Clark Corp. ................. 12,300 670,350
Procter & Gamble Co. ................. 28,100 2,565,881
------------
5,653,957
------------
TOBACCO (1.4%)
Phillip Morris Cos., Inc. ............ 51,700 2,765,950
RJR Nabisco Holdings Corp. ........... 8,000 237,500
UST, Inc. ............................ 5,000 174,375
------------
3,177,825
------------
TOTAL CONSUMER NON-CYCLICALS........ 49,836,800
------------
CREDIT SENSITIVE (25.0%)
BANKS (6.6%)
Bank One Corp. ....................... 24,450 1,248,478
Bank of New York Co., Inc. ........... 17,400 700,350
BankAmerica Corp. .................... 36,566 2,198,531
BankBoston Corp. ..................... 7,200 280,350
Chase Manhattan Corp. ................ 17,700 1,204,706
Comerica, Inc. ....................... 3,950 269,341
</TABLE>
66
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Fifth Third Bancorp ................. 6,200 $ 442,137
First Union Corp. ................... 20,520 1,247,872
Firstar Corp. ....................... 3,500 326,369
Huntington Bancshares ............... 3,340 100,409
J.P. Morgan & Co. ................... 3,900 409,744
KeyCorp ............................. 10,600 339,200
MBNA Corp. .......................... 17,100 426,431
Mellon Bank Corp. ................... 6,200 426,250
Mercantile Bancorp, Inc. ............ 4,200 193,725
National City Corp. ................. 7,800 565,500
Northern Trust Corp. ................ 2,800 244,475
PNC Bank Corp. ...................... 7,200 389,700
Regions Financial Corp. ............. 4,900 197,531
Republic New York Corp. ............. 2,600 118,462
State Street Corp. .................. 2,800 194,775
Summit Bancorp ...................... 4,600 200,962
SunTrust Banks, Inc. ................ 7,400 566,100
Synovus Financial Corp. ............. 4,450 108,469
Union Planters Corp. ................ 2,600 117,813
U.S. Bancorp ........................ 16,600 589,300
Wachovia Corp. ...................... 4,100 358,494
Wells Fargo Co. ..................... 33,700 1,345,894
------------
14,811,368
------------
FINANCIAL SERVICES (5.8%)
American Express Co. ................ 9,400 961,150
Associates First Capital Corp.,
Class A ........................... 15,024 636,642
Automatic Data Processing, Inc. ..... 7,000 561,312
Bear Stearns Co., Inc. .............. 3,000 112,125
Capital One Financial Corp. ......... 1,600 184,000
Charles Schwab Corp. ................ 9,000 505,687
Citigroup, Inc. ..................... 48,300 2,390,850
Countrywide Credit Industries,
Inc. .............................. 3,000 150,562
Deluxe Corp. ........................ 800 29,250
Dun & Bradstreet Corp. .............. 2,900 91,531
Equifax, Inc. ....................... 2,300 78,631
Fannie Mae .......................... 21,400 1,583,600
Federal Home Loan Mortgage
Corp. ............................. 14,800 953,675
First Data Corp. .................... 8,600 272,512
Fleet Financial Group, Inc. ......... 13,100 585,406
Franklin Resources, Inc. ............ 6,100 195,200
Golden West Financial Corp. ......... 800 73,350
H&R Block, Inc. ..................... 1,400 63,000
Hartford Financial Services
Group, Inc. ....................... 5,600 307,300
Household International, Inc. ....... 11,033 437,183
Lehman Brothers Holdings, Inc. ...... 2,700 118,969
MGIC Investment Corp. ............... 2,800 111,475
Merrill Lynch & Co. ................. 7,300 487,275
Morgan Stanley Dean Witter &
Co. ............................... 12,200 866,200
Paychex, Inc. ....................... 4,000 205,750
Providian Financial Corp. ........... 2,850 213,750
SLM Holding Corp. ................... 3,100 148,800
Transamerica Corp. .................. 1,000 115,500
Washington Mutual, Inc. ............. 14,002 534,701
------------
12,975,386
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- ------------------
<S> <C> <C>
INSURANCE (3.1%)
Aetna, Inc. ......................... 3,500 $ 275,187
Allstate Corp. ...................... 16,700 645,037
American General Corp. .............. 5,200 405,600
American International Group,
Inc. .............................. 22,200 2,145,075
Aon Corp. ........................... 3,000 166,125
CIGNA Corp. ......................... 4,900 378,831
Chubb Corp. ......................... 3,800 246,525
Cincinanti Financial Corp. .......... 2,700 98,887
Conseco, Inc. ....................... 7,599 232,244
Jefferson-Pilot Corp. ............... 1,650 123,750
Lincoln National Corp. .............. 2,300 188,169
MBIA, Inc. .......................... 1,900 124,569
Marsh & McClennan Cos. .............. 6,000 350,625
Progressive Corp. ................... 1,400 237,125
Provident Cos., Inc. ................ 3,500 145,250
Safeco Corp. ........................ 3,400 145,987
St. Paul Cos. ....................... 6,024 209,334
SunAmerica, Inc. .................... 4,400 356,950
Torchmark Corp. ..................... 2,000 70,625
United Healthcare Corp. ............. 4,200 180,863
Unum Corp. .......................... 3,500 204,313
------------
6,931,071
------------
UTILITY--ELECTRIC (2.1%)
AES Corp.* .......................... 3,100 146,862
Ameren Corp. ........................ 2,200 93,912
American Electric Power Co. ......... 3,000 141,187
Baltimore Gas & Electric Co. ........ 1,500 46,313
Carolina Power & Light .............. 2,100 98,831
Central & South West Corp. .......... 5,300 145,419
Cinergy Corp. ....................... 2,000 68,750
Consolidated Edison, Inc. ........... 5,300 280,238
DTE Energy Co. ...................... 2,300 98,613
Dominion Resources, Inc. ............ 5,200 243,100
Duke Energy Corp. ................... 8,500 544,531
Edison International ................ 6,700 186,763
Entergy Corp. ....................... 5,900 183,638
FPL Group, Inc. ..................... 4,700 289,638
FirstEnergy Corp. ................... 5,800 188,863
GPU, Inc. ........................... 3,200 141,400
New Century Energies, Inc. .......... 2,900 141,375
Niagara Mohawk Power, Corp.*......... 1,900 30,638
Northern States Power Co. ........... 1,700 47,175
PG&E Corp. .......................... 9,700 305,550
PP&L Resources, Inc. ................ 3,544 98,789
Pacificorp .......................... 8,500 179,031
Peco Energy Co. ..................... 4,700 195,638
Public Service Enterprise Group ..... 5,000 200,000
Southern Co. ........................ 16,600 482,438
Unicom Corp. ........................ 4,300 165,819
------------
4,744,511
------------
UTILITY--GAS (0.1%)
Apache Corp. ........................ 1,000 25,313
Consolidated Natural Gas Co. ........ 2,400 129,600
Sempra Energy ....................... 4,753 120,607
------------
275,520
------------
UTILITY--TELEPHONE (7.3%)
AT&T Corp. .......................... 37,200 2,799,300
Alltel Corp. ........................ 6,600 394,763
</TABLE>
67
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Ameritech Corp. ................... 24,300 $ 1,540,013
Bell Atlantic Corp. ............... 32,600 1,727,800
Bellsouth Corp. ................... 41,200 2,054,850
GTE Corp. ......................... 20,100 1,306,500
MCI WorldCom, Inc.* ............... 38,997 2,798,035
SBC Communications, Inc. .......... 41,200 2,209,350
Sprint Corp. ...................... 7,800 656,175
U.S. West, Inc. ................... 11,522 744,609
------------
16,231,395
------------
TOTAL CREDIT SENSITIVE .......... 55,969,251
------------
DIVERSIFIED (0.5%)
MISCELLANEOUS (0.5%)
Berkshire Hathaway,
Inc., Class A* .................. 1 49,000
Tyco International Ltd. ........... 14,360 1,083,283
------------
TOTAL DIVERSIFIED ............... 1,132,283
------------
ENERGY (6.6%)
COAL & GAS PIPELINES (0.4%)
Columbia Energy Group ............. 2,250 129,937
Eastern Enterprises ............... 100 4,375
Enron Corp. ....................... 7,700 439,381
Sonat, Inc. ....................... 2,300 62,244
Williams Cos., Inc. ............... 10,200 318,113
------------
954,050
------------
OIL--DOMESTIC (2.2%)
Atlantic Richfield Co. ............ 7,400 482,850
Burlington Resources, Inc. ........ 4,000 143,250
Coastal Corp. ..................... 5,300 185,169
Exxon Corp. ....................... 51,700 3,780,562
Halliburton Co. ................... 10,200 302,175
Sunoco, Inc. ...................... 1,300 46,881
------------
4,940,887
------------
OIL--INTERNATIONAL (2.2%)
Amerada Hess Corp. ................ 1,700 84,575
Amoco Corp. ....................... 1,100 66,413
Ashland, Inc. ..................... 1,500 72,562
Chevron Corp. ..................... 13,500 1,119,656
Houston Industries, Inc. .......... 4,500 144,562
Kerr-McGee Corp. .................. 1,500 57,375
Mobil Corp. ....................... 17,300 1,507,263
Occidental Petroleum Corp. ........ 6,400 108,000
Oryx Energy Co.* .................. 1,800 24,188
Phillips Petroleum Co. ............ 6,200 264,275
Texaco, Inc. ...................... 12,400 655,650
Texas Utilities Co. ............... 7,100 331,481
USX-Marathon Group, Inc. .......... 5,600 168,700
Union Pacific Resources Group,
Inc. ............................ 4,300 38,969
Unocal Corp. ...................... 5,200 151,775
------------
4,795,444
------------
OIL--SUPPLIES &
CONSTRUCTION (1.3%)
Anadarko
Petroleum Corp. ................. 1,600 49,400
Baker Hughes, Inc. ................ 8,360 147,867
Helmerich & Payne, Inc. ........... 200 3,875
Rowan Co., Inc.* .................. 1,200 12,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -------------------
<S> <C> <C>
Royal Dutch Petroleum Co.
(NY Shares) ..................... 46,800 $ 2,240,550
Schlumberger Ltd. ................. 11,500 530,438
------------
2,984,130
------------
RAILROADS (0.5%)
Burlington Northern
Santa Fe Corp. .................. 9,900 334,125
CSX Corp. ......................... 5,500 228,250
Norfolk Southern Corp. ............ 7,200 228,150
Union Pacific Corp. ............... 5,800 261,363
------------
1,051,888
------------
TOTAL ENERGY .................... 14,726,399
------------
TECHNOLOGY (19.8%)
ELECTRONICS (7.6%)
AMP, Inc. ......................... 5,191 270,256
Adobe Systems, Inc. ............... 1,700 79,475
Applied Material, Inc.* ........... 7,200 307,350
Circuit City Stores-Circuit City
Group ........................... 2,500 124,844
Computer Associates
International, Inc. ............. 11,300 481,662
Compuware Corp.* .................. 3,900 304,200
Emerson Electric Co. .............. 10,000 605,000
Gateway 2000, Inc.* ............... 2,800 143,325
Harris Corp. ...................... 2,000 73,250
ITT Industries, Inc. .............. 1,500 59,625
Intel Corp. ....................... 35,600 4,220,825
KLA Tencor Corp.* ................. 2,100 91,087
LSI Logic Corp.* .................. 2,000 32,250
Micron Technology, Inc.* .......... 5,000 252,812
Microsoft Corp.* .................. 53,400 7,405,912
National Semiconductor Corp.* ..... 4,000 54,000
Novell, Inc.* ..................... 8,700 157,687
Raychem Corp. ..................... 1,000 32,312
Rockwell International Corp. ...... 4,000 194,250
Solectron Corp.* .................. 2,800 260,225
Seagate Technology, Inc.* ......... 5,900 178,475
Silicon Graphics, Inc.* ........... 5,300 68,237
Sun Microsystems, Inc.* ........... 7,900 676,438
Tandy Corp. ....................... 2,700 111,206
Tektronix, Inc. ................... 1,500 45,094
Texas Instruments, Inc. ........... 8,100 693,056
Thomas & Betts Corp. .............. 1,200 51,975
------------
16,974,828
------------
OFFICE EQUIPMENT (5.6%)
Apple Computer, Inc.* ............. 2,700 110,531
Autodesk, Inc. .................... 1,300 55,494
Avery Dennison Corp. .............. 3,200 144,200
Cabletron Systems* ................ 5,700 47,738
Compaq Computer Corp. ............. 36,939 1,549,129
Data General Corp.* ............... 1,600 26,300
Dell Computer Corp.* .............. 27,100 1,983,381
EMC Corp.* ........................ 10,700 909,500
Electronic Data Systems Corp. ..... 11,200 562,800
Hewlett Packard Co. ............... 22,800 1,557,525
International Business Machines
Corp. ........................... 19,700 3,639,575
Oracle Corp.* ..................... 21,100 909,938
Parametric Technology Corp.* ...... 6,900 112,125
</TABLE>
68
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- ---------------
<S> <C> <C>
Unisys Corp.* ..................... 5,000 $ 172,188
Xerox Corp. ....................... 7,400 873,200
------------
12,653,624
------------
OFFICE EQUIPMENT SERVICES (1.0%)
America Online, Inc*. ............. 9,800 1,568,000
BMC Software, Inc.* ............... 5,100 227,269
Ceridian Corp.* ................... 1,800 125,663
Computer Sciences Corp. ........... 3,800 244,863
PeopleSoft, Inc.* ................. 5,800 109,838
------------
2,275,633
------------
TELECOMMUNICATIONS (5.6%)
3Com Corp.* ....................... 7,400 331,613
Advanced Micro Devices, Inc.* ..... 2,400 69,450
AirTouch Communications, Inc.* 12,300 887,138
Andrew Corp.* ..................... 2,500 41,250
Ascend Communications, Inc.* ...... 4,400 289,300
CBS Corp. ......................... 15,500 507,625
Cisco Systems, Inc.* .............. 33,700 3,127,781
Comcast Corp., Class A ............ 7,500 440,156
Corning, Inc. ..................... 5,600 252,000
Frontier Corp. .................... 4,600 156,400
Gannett Co. ....................... 6,600 425,700
General Instrament Corp.* ......... 3,600 122,175
Lucent Technologies, Inc. ......... 28,100 3,091,000
Motorola, Inc. .................... 12,500 763,281
Nextel Communications, Inc.,
Class A* ........................ 6,700 158,288
Northern Telecom Ltd. ............. 13,580 680,698
Scientific-Atlanta, Inc. .......... 1,900 43,344
Sprint PCS* ....................... 10,250 237,031
Telecommunications, Inc.,
Class A* ........................ 9,700 536,531
Tellabs, Inc.* .................... 4,000 274,249
------------
12,435,010
------------
TOTAL TECHNOLOGY ................ 44,339,095
------------
TOTAL COMMON STOCKS (95.3%)
(Cost $192,500,265).............. 213,583,663
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------ ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (10.0%)
U.S. Treasury Bill
1/21/99 ............................ $ 965,000 $ 963,004
2/4/99- ............................ 785,000 782,100
2/11/99 ............................ 1,379,000 1,372,756
3/11/99 ............................ 8,505,000 8,437,955
3/18/99 ............................ 5,340,000 5,293,222
4/1/99 ............................. 5,715,000 5,655,336
-------------
TOTAL SHORT-TERM DEBT SECURITIES (10.0%)
(Amortized Cost $22,493,397)........ 22,504,373
-------------
TOTAL INVESTMENTS (105.3%)
(Cost/Amortized Cost
$214,993,662)....................... 236,088,036
OTHER ASSETS
LESS LIABILITIES (-5.3%) ........... (11,841,183)
-------------
NET ASSETS (100%) .................... $ 224,246,853
=============
</TABLE>
- ----------
* Non-income producing
- - All, or a portion of securities held by broker as collateral for financial
futures contracts.
Glossary:
ADR--American Depository Receipts
69
<PAGE>
EQ ADVISORS TRUST
BT EQUITY 500 INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998, the Portfolio had the following futures contracts open:
(Note 1)
<TABLE>
<CAPTION>
NUMBER
OF AGGREGATE EXPIRATION UNREALIZED
PURCHASES: CONTRACTS FACE VALUE DATE APPRECIATION
- ----------------------- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
S&P 500 Index ......... 31 $9,652,625 March `99 $47,461
=======
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $194,519,887
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 2,171,672
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 27,006,657
Aggregate gross unrealized depreciation ......... (5,913,732)
------------
Net unrealized appreciation ..................... $ 21,092,925
============
Federal income tax cost of investments .......... $214,995,111
============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$20,368,871 which was secured by collateral of
$20,909,620.
See Notes to Financial Statements.
70
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
COMMON STOCKS, RIGHTS
AND WARRANTS:
AUSTRALIA & NEW ZEALAND (2.4%)
AUSTRALIA (2.3%)
AMP Ltd.* ........................... 6,897 $ 87,375
Amcor Ltd. .......................... 5,154 22,021
Australian Gas & Light Co.,
Ltd. .............................. 2,360 16,997
Boral Ltd. .......................... 7,252 10,309
Brambles Industries Ltd. ............ 1,458 35,512
Broken Hill Proprietary Ltd. ........ 13,472 99,216
CSR Ltd. ............................ 8,427 20,603
Coca-Cola Amatil Ltd. ............... 7,627 28,414
Coles Meyer Ltd. .................... 7,669 40,178
Fosters Brewing Corp. ............... 14,661 39,707
GIO Australia Holdings Ltd. ......... 4,650 15,272
General Property Trust .............. 12,671 23,681
Lend Lease Corp. .................... 3,262 43,973
National Australia Bank Ltd. ........ 8,755 131,970
News Corp., Ltd. .................... 13,134 86,756
Normandy Mining Ltd. ................ 9,317 8,621
Pacific Dunlop Ltd. ................. 8,588 13,892
Pioneer International Ltd. .......... 9,978 21,093
Rio Tinto Ltd. ...................... 2,635 31,250
Santos Ltd. ......................... 4,030 10,816
Southcorp Ltd. ...................... 4,187 13,354
TABCORP Holdings Ltd. ............... 3,437 21,060
Telstra Corp., Ltd.* ................ 35,059 163,910
WMC Ltd. ............................ 8,031 24,211
Westfield Trust ..................... 8,047 17,751
Westpac Banking Corp. ............... 13,686 91,576
---------
1,119,518
---------
NEW ZEALAND (0.1%)
Brierley Investments Ltd. ........... 14,287 3,235
Carter Holt Harvey Ltd. ............. 7,285 6,521
Lion Nathan Ltd. .................... 2,964 7,538
Telecom Corp. of New Zealand
Ltd. .............................. 9,577 41,603
---------
58,897
---------
TOTAL AUSTRALIA &
NEW ZEALAND .................... 1,178,415
---------
JAPAN (19.2%)
77 Bank Ltd. ........................ 3,000 30,040
Acom Co., Ltd. ...................... 1,000 64,333
Advantest Corp. ..................... 1,000 63,447
Ajinomoto Co. ....................... 4,000 42,534
Amada Co., Ltd. ..................... 3,000 14,542
Aoyamma Trading Co., Ltd. ........... 200 5,600
Asahi Bank Ltd. ..................... 14,000 51,360
Asahi Breweries Ltd. ................ 3,000 44,262
Asahi Chemical Industry Co.,
Ltd. .............................. 8,000 38,210
Asahi Glass Co., Ltd. ............... 8,000 49,694
Bank of Tokyo-Mitsubushi Ltd. ....... 28,000 290,297
Bridgestone Corp. ................... 5,000 113,647
Canon, Inc. ......................... 6,000 128,401
Casio Computer Co., Ltd. ............ 2,000 14,781
Chiba Bank Ltd. ..................... 7,000 27,851
Citizen Watch Co., Ltd. ............. 3,000 18,077
Credit Saison Co., Ltd. ............. 1,100 27,147
Daiei, Inc. ......................... 7,000 19,043
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Daikin Industries Ltd. .............. 3,000 $ 29,774
Dai Nippon Printing Co., Ltd. ....... 5,000 79,841
Daiichi Pharma Co., Ltd. ............ 2,000 33,833
Dainippon Ink and Chemicals,
Inc. .............................. 7,000 19,167
Daiwa House Industry Co., Ltd. ...... 4,000 42,641
Daiwa Securities Co., Ltd. .......... 5,000 17,102
Denso Corp. ......................... 6,000 111,121
East Japan Railway Co. .............. 25 139,787
Ebara Corp. ......................... 2,000 17,244
Eisai Co., Ltd. ..................... 2,000 38,990
Fanuc ............................... 1,700 58,299
Fuji Bank Ltd. ...................... 18,000 66,354
Fuji Photo Film Co. ................. 3,000 111,653
Fujitsu Ltd. ........................ 11,000 146,699
Furukawa Electric Co., Ltd. ......... 6,000 20,470
Gunma Bank Ltd. ..................... 4,000 31,795
Hankyu Corp. ........................ 5,000 21,976
Hitachi Ltd. ........................ 21,000 130,262
Honda Motor Co., Ltd. ............... 6,000 197,253
House Foods Corp. ................... 1,000 16,925
Hoya Corp. .......................... 1,000 48,737
Industrial Bank of Japan Ltd. ....... 15,000 69,251
Isetan Co., Ltd. .................... 2,000 21,480
Ito-Yokado Co., Ltd. ................ 3,000 210,013
Itochu Corp. ........................ 9,000 17,386
JUSCO Co., Ltd. ..................... 2,000 40,496
Japan Airlines Co., Ltd.* ........... 12,000 31,688
Japan Energy Corp. .................. 7,000 6,637
Joyo Bank Ltd. ...................... 8,000 31,334
Kajima Corp. ........................ 8,000 20,913
Kaneka Corp. ........................ 3,000 22,517
Kansai Electric Power Co., Inc. ..... 6,100 133,784
Kao Corp. ........................... 4,000 90,386
Kawasaki Heavy Industries Ltd. ...... 12,000 28,179
Kawasaki Steel Corp. ................ 25,000 37,439
Kinden Corp. ........................ 2,000 30,448
Kinki Nippon Railway Co., Ltd. ...... 10,000 53,611
Kirin Brewery Co., Ltd. ............. 7,000 89,322
Kokuyo .............................. 1,000 13,478
Komatsu Ltd. ........................ 8,000 42,038
Komori Corp. ........................ 1,000 21,090
Kubuto Corp. ........................ 9,000 26,876
Kuraray Co., Ltd. ................... 3,000 33,150
Kyocera Corp. ....................... 1,000 52,902
Marui Co., Ltd. ..................... 3,000 57,820
Matsushita Electric Industries
Co. ............................... 13,000 230,279
Meiji Seika ......................... 4,000 15,950
Minebea Co., Ltd. ................... 3,000 34,400
Mitsubishi Chemical Corp. ........... 14,000 29,526
Mitsubishi Corp. .................... 11,000 63,359
Mitsubishi Electric Corp. ........... 15,000 47,187
Mitsubishi Estate Co., Ltd. ......... 8,000 71,812
Mitsubishi Heavy Industries Ltd. 22,000 85,778
Mitsubishi Materials Corp. .......... 10,000 16,837
Mitsubishi Trust & Banking
Corp. ............................. 8,000 51,538
Mitsui & Co., Ltd. .................. 11,000 61,507
Mitsui Fudosan Co., Ltd. ............ 5,000 37,882
Mitsui Marine & Fire Insurance
Co., Ltd. ......................... 6,000 31,635
</TABLE>
71
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Mitsui Mining & Smelting Co.,
Ltd. .............................. 5,000 $24,679
Murata Manufacturing Co., Ltd. ...... 2,000 83,119
NAMCO Ltd. .......................... 1,000 20,115
NEC Corp. ........................... 9,000 82,942
NGK Insulators Ltd. ................. 3,000 38,733
NGK Spark Plug Co., Ltd. ............ 1,000 10,199
Nagoya Railroad Co., Ltd. ........... 2,000 7,266
Nikon Corp. ......................... 1,000 9,747
Nippon COMSYS Corp. ................. 1,000 13,638
Nippon Express Co., Ltd. ............ 8,000 45,086
Nippon Meat Packers, Inc. ........... 2,000 32,255
Nippon Oil Co. ...................... 9,000 31,422
Nippon Paper Industries Co. ......... 6,000 27,328
Nippon Steel Corp. .................. 40,000 72,663
Nippon Telegraph & Telephone
Corp. ............................. 75 579,530
Nippon Yusen Labushiki Kaisha ....... 7,000 22,144
Nissan Motor Co., Ltd. .............. 11,000 33,726
Nissin Food Products Co., Inc. ...... 1,000 25,211
Nitto Denko Corp. ................... 1,000 16,659
Nomura Securities Co. ............... 13,000 113,469
Obayashi Corp. ...................... 6,000 28,817
Odakyu Electric Railway ............. 3,000 10,501
Oji Paper Co., Ltd. ................. 7,000 36,411
Olympus Optical Co., Ltd. ........... 2,000 23,022
Omron Corp. ......................... 1,000 13,717
Onward Kashiyama Co., Ltd. .......... 1,000 13,452
Orix Corp. .......................... 1,000 74,790
Osaka Gas Co., Ltd. ................. 18,000 62,047
Pioneer Electronic Corp. ............ 1,000 16,792
Rohm Co. ............................ 1,000 91,183
SHIMANO, Inc. ....................... 1,000 25,831
SMC Corp. ........................... 1,000 79,929
Sakura Bank Ltd. .................... 24,000 55,082
Sankyo Co. .......................... 3,000 65,662
Sanyo Electric Co., Ltd. ............ 13,000 40,319
Secom Co. ........................... 1,000 82,942
Sekisui Chemical Co. ................ 4,000 26,938
Sekisui House Ltd. .................. 5,000 52,946
Sharp Corp. ......................... 7,000 63,208
Shimizu Corp. ....................... 6,000 20,151
Shin-Etsu Chemical Co. .............. 3,000 72,308
Shionogi & Co., Ltd. ................ 3,000 21,985
Shiseido Co., Ltd. .................. 3,000 38,600
Shizuoka Bank Ltd. .................. 5,000 61,808
Sony Corp. .......................... 2,500 182,322
Sumitomo Bank Ltd. .................. 19,000 195,304
Sumitomo Chemical Co., Ltd. ......... 12,000 46,788
Sumitomo Corp. ...................... 7,000 34,116
Sumitomo Electric Industries ........ 5,000 56,314
Sumitomo Marine & Fire
Insurance Co., Ltd. ............... 4,000 25,379
Sumitomo Metal Industries ........... 29,000 33,150
Sumitomo Metal Mining Co. ........... 3,000 9,756
Taiheiyo Cement Corp. ............... 6,000 15,047
Taisei Corp. ........................ 7,000 13,460
Taisho Pharmaceutical ............... 2,000 55,117
Takashimaya Co., Ltd. ............... 3,000 25,281
Takeda Chemical Industries .......... 6,000 231,280
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Teijin Ltd. ......................... 6,000 $22,118
Tobu Railway Co., Ltd. .............. 7,000 20,470
Toho Co., Ltd. ...................... 100 13,717
Tohoku Electric Power Co., Inc. ..... 3,000 53,168
Tokai Bank Ltd. ..................... 12,000 56,783
Tokio Marine & Fire Insurance
Co. ............................... 10,000 119,628
Tokyo Electric Power ................ 8,300 205,202
Tokyo Electron Ltd. ................. 1,000 38,015
Tokyo Gas Co., Ltd. ................. 9,000 23,686
Tokyo Style Co., Ltd. ............... 1,000 10,137
Tokyu Corp. ......................... 9,000 23,686
Toppan Printing Co., Ltd. ........... 5,000 61,143
Toray Industries, Inc. .............. 9,000 47,054
Tostem Corp. ........................ 2,000 39,699
Toto Ltd. ........................... 2,000 16,074
Toyo Seikan Kaisha Ltd. ............. 2,000 33,992
Toyota Automatic Loom Works
Ltd. .............................. 2,000 35,428
Toyota Motor Corp. .................. 23,000 625,698
Uni-Charm Corp. ..................... 1,000 46,965
Uny Co., Ltd. ....................... 2,000 36,597
Wacaol Corp. ........................ 1,000 12,875
Yamaha Corp. ........................ 1,000 10,368
Yamanouchi Pharmaceutical Co.,
Ltd. .............................. 2,000 64,510
Yamato Transport Co., Ltd. .......... 3,000 42,003
Yamazaki Banking Co., Ltd. .......... 2,000 26,105
---------
TOTAL JAPAN ....................... 9,359,924
----------
OTHER EUROPEAN COUNTRIES (40.6%)
AUSTRIA (0.2%)
Austria Tabakwerke AG ............... 180 13,801
Bank Austria AG ..................... 595 30,254
EA-Generali AG ...................... 30 7,369
Flughafen Wein AG ................... 150 7,360
OMV AG .............................. 170 16,021
Oesterreichische
Elektrizitaetseirtschafts AG,
Class A ........................... 180 27,509
VA Technologies AG .................. 70 6,065
Wienerberger Baustoffindustrie
AG ................................ 50 9,944
-----------
118,323
-----------
BELGIUM (1.7%)
Barco N.V. .......................... 74 20,764
Colruyt S.A. ........................ 20 16,662
D'Ieteren S.A. ...................... 28 15,349
Delhaize Le Lion S.A. ............... 212 18,643
Electrabel S.A. ..................... 332 145,016
Fortis AG ........................... 481 173,227
Fortis AG Strip ..................... 140 8
Fortis AG, Class B (CVG Rights
expiring 7/21/01)* ................ 140 628
Groupe Bruxelles Lambert S.A. ....... 154 31,183
Kredietbank N.V. .................... 1,804 141,940
Petrofina S.A. ...................... 134 61,050
Solvay S.A., Class A ................ 502 37,610
Tractebel ........................... 496 95,699
UCB S.A. ............................ 10 61,325
-----------
819,104
-----------
</TABLE>
72
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
FRANCE (8.2%)
Air Liquide ........................ 515 $ 94,440
Axa++ .............................. 2,067 299,538
Axa (Warrants expiring
4/30/01)*++ ...................... 20 --
Accor S.A. ......................... 206 44,594
Alcatel Alsthom .................... 1,210 148,070
Banque Nationale de Paris .......... 1,353 111,396
Bouygues ........................... 160 32,976
Canal Plus ......................... 182 49,656
Cap Gemini Sogeti .................. 384 61,624
Carrefour S.A. ..................... 235 177,380
Cie Generale des Eaux .............. 951 246,704
Coflexip S.A. ...................... 44 2,983
Compagnie de Saint Gobain .......... 500 70,579
Dassault Systemes S.A. ............. 195 9,165
Elf Acquitaine S.A. ................ 1,657 191,506
Eridania Beghin .................... 158 27,334
Essilor International S.A. ......... 28 11,021
Etablissements Economiques du
Casino Guichard-Perrachon
S.A. ............................. 404 42,066
France Telecom S.A. ................ 4,749 377,235
Groupe Danone ...................... 450 128,813
L'Oreal ............................ 404 292,005
LVMH (Moet Hennessy Louis
Vuitton) ......................... 551 109,027
Lafarge S.A. ....................... 599 56,905
Legardere S.C.A. ................... 757 32,165
Legrand S.A. ....................... 163 43,189
Michelin, Class B (Registered) ..... 722 28,870
PSA Peugeot Citroen ................ 285 44,105
Paribas ............................ 929 80,726
Pechiney S.A., Class A ............. 415 13,550
Pernod Ricard ...................... 356 23,120
Pinault-Printemps-Redoute S.A. ..... 720 137,572
Promodes ........................... 116 84,341
Rhone-Poulenc, Class A ............. 2,283 117,469
Sanofi S.A. ........................ 664 109,291
Schneider S.A. ..................... 869 52,704
SEITA .............................. 112 7,013
Sidel S.A. ......................... 215 18,232
Simco .............................. 157 14,241
Societe BIC S.A. ................... 119 6,600
Societe Eurafrance S.A. ............ 12 7,943
Societe Generale Paris ............. 634 102,651
Sodexho Alliance S.A. .............. 198 44,279
Suez Lyonnaise des Eaux ............ 889 182,587
Thomson CSF ........................ 1,002 43,024
Total S.A., Class B ................ 1,426 144,399
Usinor Sacilor ..................... 1,205 13,377
Valero S.A. ........................ 491 38,686
---------
3,975,151
---------
GERMANY (9.2%)
AMB Aachener & Muenchener
Beteilgungs-AG ................... 250 36,304
Adidas-Salomon AG .................. 300 33,033
Allianz AG (New)* .................. 17 6,325
Allianz AG (Registered) ............ 1,450 539,454
Axa Colonia Konzern AG++ ........... 100 11,341
BASF AG ............................ 3,800 144,908
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Bayer AG ........................... 4,450 $ 186,785
Bayerische Vereinsbank AG .......... 2,425 191,788
Beiersdorf AG ...................... 350 24,047
Continental AG ..................... 350 9,724
DaimlerChrysler AG* ................ 5,744 570,436
Degussa AG ......................... 250 13,801
Deutsche Bank AG ................... 3,250 191,665
Deutsche Lufthansa AG
(Registered) ..................... 2,250 49,887
Deutsche Telekom AG ................ 13,050 428,735
Douglas Holding AG ................. 100 5,911
Dresdner Bank AG ................... 3,000 125,653
Heidelberger Zement AG ............. 350 27,513
Hochtief AG ........................ 250 9,826
Karstadt AG ........................ 50 26,163
Linde AG ........................... 50 30,303
M.A.N. AG .......................... 100 29,703
Mannesmann AG ...................... 2,300 266,022
Merck KGaA ......................... 1,000 45,005
Metro AG ........................... 1,680 132,061
Muenchener
Rueckversicherungs-Gesellschaft
AG (Registered)* ................. 512 250,393
Preussag AG ........................ 100 45,425
RWE AG ............................. 2,650 146,295
SAP AG ............................. 400 172,817
SGL Carbon AG ...................... 50 3,027
Schering AG ........................ 400 50,285
Siemens AG ......................... 3,450 226,688
Thyssen AG ......................... 200 37,804
Veba AG ............................ 2,900 171,755
Viag AG ............................ 150 88,659
Volkswagen AG ...................... 1,920 155,305
---------
4,484,846
---------
IRELAND (0.4%)
Allied Irish Banks plc ............. 4,743 84,863
CRH plc ............................ 2,125 36,662
Independent Newspapers plc ......... 1,622 6,513
Irish Life plc ..................... 1,925 18,094
Irish Permanent plc ................ 721 9,651
Jefferson Smurfit Group plc ........ 3,797 6,833
Kerry Group plc, Class A ........... 1,180 16,058
Ryanair Holdings plc* .............. 885 5,792
---------
184,466
---------
ITALY (4.6%)
Alitalia S.p.A.* ................... 11,054 40,780
Assicurazioni Generali S.p.A. ...... 6,398 266,986
Banca Commerciale Italiana ......... 11,117 76,646
Banco Intasa S.p.A. ................ 13,488 80,879
Benetton Group S.p.A.* ............. 16,533 33,296
Credito Italiano S.p.A. ............ 30,207 178,940
ENI S.p.A. (Registered) ............ 49,226 321,525
Edison S.p.A. ...................... 4,732 55,705
Fiat S.p.A. ........................ 26,606 92,361
Istituto Nazionale delle
Assicurazioni .................... 25,151 66,395
Italgas S.p.A. ..................... 3,598 19,464
Mediaset S.p.A. .................... 8,971 72,701
Mediobanca S.p.A. .................. 3,565 49,481
Montedison S.p.A. .................. 37,289 49,501
</TABLE>
73
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Olivetti S.p.A.* ................... 10,462 $ 36,381
Parmalat Finanziaria S.p.A. ........ 8,908 17,024
Pirelli S.p.A. ..................... 10,775 34,505
Riunione Adriatica di Sicurta
S.p.A. ........................... 2,189 31,706
San Paolo -- IMI S.p.A. ............ 8,402 148,376
Telecom Italia Mobile S.p.A.
(RNC) ............................ 10,828 50,948
Telecom Italia Mobile S.p.A. ....... 41,176 303,808
Telecom Italia S.p.A. .............. 23,398 199,523
Telecom Italia S.p.A. (RNC) ........ 4,077 25,643
Unione Immobiliare S.p.A* .......... 25,151 13,112
----------
2,265,686
----------
NETHERLANDS (5.7%)
ABN-Amro Holdings N.V. ............. 8,547 179,779
AEGON N.V. ......................... 3,425 420,579
Akzo Nobel N.V. .................... 1,521 69,250
Buhrmann N.V. ...................... 149 2,662
Elsevier N.V. ...................... 3,548 49,690
Getronics N.V. ..................... 424 20,998
Hagemeyer N.V. ..................... 525 19,178
Heineken N.V. ...................... 1,910 114,932
IHC Caland N.V. .................... 64 2,658
ING Groep N.V. ..................... 5,581 340,287
KLM Royal Dutch
Airlines N.V. .................... 323 9,770
Koninklijke Ahold N.V. ............. 3,766 139,177
Koninklijke KPN N.V. ............... 2,879 144,111
Oce N.V. ........................... 302 10,855
Philips Electronics N.V. ........... 2,176 146,001
Royal Dutch Petroleum Co. .......... 12,574 626,055
TNT Post Group N.V. ................ 2,559 82,443
Unilever N.V. ...................... 3,772 322,385
Wolters Kluwer N.V. ................ 344 73,603
----------
2,774,413
----------
PORTUGAL (0.5%)
BPI-SGPS S.A. (Registered) ......... 300 10,185
Banco Comercial Portugues
(Registered) ..................... 1,200 36,910
Banco Espirito Santo ............... 662 20,556
Brisa-Auto Estradas de Portugal
S.A. ............................. 400 23,556
Cimentos de Portugal S.A. .......... 500 15,968
Electricidade de Portugal S.A. ..... 3,300 72,689
Jeronimo Martins & Filho ........... 500 27,365
Portugal Telecom S.A. .............. 1,100 50,457
Sonae Investimentos-Sociedade
Gestora de Participacoes
Sociais S.A. ..................... 100 4,864
----------
262,550
----------
SPAIN (2.9%)
Acerinox S.A. ...................... 280 6,511
Argentaria Corp. Banc .............. 2,778 71,835
Autopistas Concesionaria Espana 1,368 22,717
Azucarera Ebro Agricolas S.A. ...... 539 11,871
Banco Bilbao Vizcaya S.A. .......... 11,926 186,711
Banco Central Hispanoamer S.A. 5,556 65,873
Banco Santander S.A. ............... 7,211 143,083
Corporacion Financiera Alba
S.A. ............................. 114 19,011
Dragados & Construcciones S.A. 306 11,261
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Endesa S.A. ........................ 5,824 $ 154,083
Fomento de Construcciones y
Contratas S.A. ................... 425 31,549
Gas Natural SDG S.A. ............... 771 83,816
Iberdrola S.A. ..................... 5,659 105,718
Repsol S.A. ........................ 1,880 100,138
Sociedad General de Aguas de
Barcelona S.A. ................... 342 22,861
Tabacalera S.A., Class A ........... 1,183 29,800
TelePizza S.A.* .................... 1,182 11,228
Telefonica S.A. .................... 6,142 272,699
Telefonica S.A. (Rights expiring
1/30/99)* ........................ 6,142 5,445
Union Electrica Fenosa S.A. ........ 1,237 21,368
Vallehermoso S.A. .................. 762 10,884
Zardoya Otis S.A. .................. 375 11,689
----------
1,400,151
----------
SWITZERLAND (7.2%)
ABB AG (Bearer) .................... 50 58,695
Adecco S.A. (Bearer) ............... 100 45,716
Alusuisse Lonza Group AG ........... 40 46,664
CS Holdings ........................ 1,650 258,658
Georg Fischer AG (Registered) ...... 30 10,160
Holderbank Financiere Glarus
AG (Registered) .................. 90 22,574
Holderbank Financiere Glarus
AG, Class B ...................... 30 35,567
Kuoni Reisen AG (Registered) ....... 1 3,974
Nestle S.A. (Registered) ........... 235 512,322
Novartis AG (Bearer) ............... 30 59,059
Novartis AG (Registered) ........... 365 718,556
Roche Holding AG ................... 10 181,371
Roche Holding AG (Genus
Certificate) ..................... 42 513,248
SGS Societe Generale de
Surveillance Holding S.A. ........ 15 14,710
SAirGroup (Registered) ............. 50 12,432
Sulzer AG .......................... 20 12,191
Swiss Reinsurance Co.
(Registered) ..................... 85 221,936
Swisscom AG (Registered)* .......... 450 188,662
The Swatch Group AG,
(Class B) ........................ 10 6,198
The Swatch Group AG ................ 100 15,002
UBS AG (Registered)* ............... 1,251 384,923
Zurich Allied AG* .................. 280 207,626
----------
3,530,244
----------
TOTAL OTHER EUROPEAN
COUNTRIES ..................... 19,814,934
----------
SCANDINAVIA (4.6%)
DENMARK (0.7%)
Carlsberg A.S., Class B ............ 200 11,564
Carlsberg, Class A ................. 200 11,627
D/S 1912, Class B .................. 6 41,951
D/S Svendborg, Class B ............. 4 40,537
Danisco ............................ 357 19,352
Den Danske Bank AS ................. 300 40,302
ISS International Service System
A/S, Class B ..................... 143 9,302
Novo-Nordisk A/S, Class B .......... 413 54,509
</TABLE>
74
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
Tele Danmark A/S, Class B .......... 590 $ 79,631
Unidanmark A/S, Class A
(Registered) ..................... 300 27,103
----------
335,878
----------
FINLAND (1.4%)
Kemira Oyj ......................... 1,000 7,158
Kesco Oyj .......................... 700 10,434
Merita Plc, Class A ................ 5,600 35,364
Metra Oyj, Class B ................. 200 3,452
Nokia Oyj, Class A ................. 2,800 340,462
Nokia Oyj, Class K ................. 800 97,275
Outokumpu Oyj ...................... 500 4,589
Raisio Group plc ................... 1,800 19,769
Sampo Insurance Co., plc,
Class A .......................... 500 18,974
Sonera Group Oyj* .................. 2,900 51,187
Tieto Corp., Class B ............... 600 26,711
UPM-Kymmene Oyj .................... 1,700 47,343
----------
662,718
----------
NORWAY (0.2%)
Bergesen d. y. ASA, Class A ........ 500 5,986
Christiania Bank OG Kreditkasse 2,900 10,073
Den Norske Bank .................... 2,600 8,997
Kvaerner plc ....................... 200 3,947
Merkantildata ASA .................. 550 5,427
NCL Holdings ASA* .................. 1,200 2,842
Norsk Hydro ASA .................... 1,250 42,266
Orkla ASA, Class A ................. 800 11,946
Petroleum Geo-Services* ............ 400 5,105
Schibsted ASA ...................... 450 5,684
Storebrand ASA* .................... 1,800 13,617
Tomra Systems ASA .................. 200 6,578
----------
122,468
----------
SWEDEN (2.3%)
ABB AB, Class A .................... 4,200 44,875
ABB AB, Class B .................... 400 4,249
AGA AB, Class A .................... 400 5,311
Astra AB, Class A .................. 8,200 167,631
Astra AB, Class B .................. 1,400 28,533
Atlas Copco AB ..................... 900 19,788
Drott AB, Class B* ................. 500 4,601
Electrolux AB, Class B ............. 2,400 41,355
Ericsson LM, Class B ............... 11,800 281,308
Fastighets AB Balder* .............. 60 667
ForeningsSparbanken AB ............. 1,900 49,285
Hennes & Mauritz AB, Class B ....... 1,300 106,303
Mandamus AB* ....................... 45 253
Netcom Systems AB, Class B* ........ 700 28,533
Sandvik AB, Class A ................ 1,600 27,866
Securitas AB, Class B .............. 2,500 38,909
Skandia Forsakrings AB ............. 3,600 55,140
Skandinaviska Enskilda Banken ...... 4,300 45,413
Skanska AB, B Shares ............... 800 22,234
Svenska Cellulosa, AB, Class B ..... 1,200 26,236
Svenska Handelsbanken, Class A 1,300 54,918
Volvo AB, Class A .................. 1,000 22,419
Volvo AB, Class B .................. 1,600 36,760
WM-Data AB, Class B ................ 200 8,548
----------
1,121,135
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
TOTAL SCANDINAVIA ................ $2,242,199
----------
SOUTHEAST ASIA (2.3%)
HONG KONG (1.7%)
Bank of East Asia Ltd. ............. 4,844 8,441
CLP Holdings Ltd. .................. 14,000 69,754
Cathay Pacific Airways ............. 22,000 21,866
Cheung Kong Ltd. ................... 13,000 93,549
Hang Seng Bank Ltd. ................ 11,900 106,370
Hong Kong & China Gas Co.,
Ltd. ............................. 22,000 27,971
Hong Kong & China Gas Co.,
Ltd. (Warrants expiring
9/30/99)* ........................ 500 33
Hong Kong Telecommunications
Ltd. ............................. 73,394 128,367
Hutchison Whampoa Ltd. ............. 24,000 169,609
Johnson Electric Holdings Ltd. ..... 4,000 10,275
New World Development Co. .......... 14,108 35,510
Shangri-La Asia Ltd. ............... 10,000 8,519
Sun Hung Kai Properties Ltd. ....... 14,235 103,815
Swire Pacific Ltd., Class A ........ 9,000 40,311
Television Broadcasts Ltd. ......... 2,000 5,163
Wharf Holdings ..................... 13,000 18,962
Wharf Holdings (Warrants
expiring 12/31/99)* .............. 400 33
----------
848,548
----------
SINGAPORE (0.6%)
City Developments .................. 4,000 17,333
Creative Technology Ltd.* .......... 1,000 14,121
Development Bank of Singapore
(Foreign) ........................ 4,600 41,539
Keppel Corp. Ltd. .................. 6,000 16,073
Oversea-Chinese Banking Corp.,
Ltd. (Foreign) ................... 6,057 41,114
Singapore Airlines Ltd. ............ 5,000 36,667
Singapore Press Holdings Ltd. ...... 3,048 33,066
Singapore Technologies
Engineering Ltd. ................. 20,000 18,667
Singapore Telecommunications
Ltd. ............................. 34,000 51,927
United Overseas Bank Ltd.
(Foreign) ........................ 3,000 19,273
----------
289,780
----------
TOTAL SOUTHEAST ASIA ............. 1,138,328
----------
UNITED KINGDOM (18.4%)
Abbey National plc ................. 8,474 181,459
Allied Zurich plc* ................. 9,387 140,019
Anglian Water plc .................. 1,842 25,438
Arjo Wiggins Appleton plc .......... 2,323 4,368
Associated British Foods plc ....... 5,015 47,436
BBA Group plc ...................... 1,519 9,427
BG plc ............................. 23,618 149,032
BOC Group plc ...................... 2,825 40,399
BPB plc ............................ 3,563 13,472
BTR plc ............................ 16,787 34,634
Barclays plc ....................... 9,147 197,240
Bass plc ........................... 4,410 64,203
Blue Circle Industries plc ......... 3,834 19,775
Boots Co. plc ...................... 5,609 95,518
British Aerospace plc .............. 9,926 84,145
</TABLE>
75
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- -----------------
<S> <C> <C>
British Airport Authority plc ........ 5,856 $68,350
British Airways plc .................. 5,998 40,443
British American Tobacco plc ......... 8,567 75,333
British Land Co., plc ................ 3,057 22,736
British Petroleum Co., plc ........... 34,836 520,204
British Sky Broadcasting plc ......... 10,573 80,306
British Steel plc .................... 12,289 18,198
British Telecom plc .................. 37,760 568,894
Bunzl plc ............................ 2,883 11,273
Burmah Castrol plc ................... 1,253 17,929
Cable & Wireless plc ................. 14,375 176,752
Cadbury Schweppes plc ................ 6,171 105,242
Carlton Communications plc ........... 4,042 37,191
Centrica plc ......................... 22,691 45,683
Coca-Cola Beverages plc* ............. 3,490 6,418
CGU plc .............................. 7,944 124,377
Compass Group plc .................... 3,828 43,852
Diageo plc ........................... 21,652 246,414
EMI Group plc ........................ 3,870 25,885
Electrocomponents plc ................ 1,842 12,351
GKN plc .............................. 4,555 60,441
General Electric Co., plc ............ 16,405 148,077
Glaxo Wellcome plc ................... 21,149 727,698
Granada Group plc .................... 4,926 87,083
Great Universal Stores plc ........... 5,497 57,941
Guardian Royal Exchange plc .......... 3,443 19,277
HSBC Holdings plc .................... 10,785 272,756
HSBC Holdings plc .................... 5,040 136,688
Halifax plc .......................... 14,405 204,444
Hanson plc ........................... 3,355 26,641
Imperial Chemical Industries plc ..... 3,652 31,658
Jarvis plc ........................... 904 10,047
Kingfisher plc ....................... 7,428 80,395
Ladbroke Group plc ................... 3,691 14,831
Land Securities plc .................. 3,074 39,587
Lasmo plc ............................ 1,694 2,819
Legal & General Group plc ............ 7,789 101,150
Lloyds TSB Group plc ................. 31,829 452,794
LucasVarity plc ...................... 8,392 27,996
Marks & Spencer plc .................. 17,390 119,281
MEPC plc ............................. 1,837 12,226
Misys plc ............................ 3,072 22,375
National Grid Group plc .............. 8,087 64,553
National Power plc ................... 7,876 67,881
Pearson plc .......................... 3,246 64,432
Penninsular & Oriental Steam
Navigation Co. ..................... 3,692 43,645
Pilkington plc ....................... 342 341
Provident Financial plc .............. 1,692 24,915
Prudential Corp. plc ................. 11,622 175,484
RMC Group plc ........................ 1,309 17,925
Racal Electronic plc ................. 1,213 7,023
Railtrack Group plc .................. 3,168 82,808
Rank Group plc ....................... 4,798 18,481
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------- -----------------
<S> <C> <C>
Reed International plc ............... 5,635 $44,066
Rentokil Initial plc ................. 17,331 130,627
Reuters Group plc .................... 9,032 94,825
Rexam plc ............................ 2,930 8,141
Rio Tinto plc (Registered) ........... 5,842 67,944
Rolls-Royce plc ...................... 8,754 36,267
Royal & Sun Alliance Insurance
Group plc .......................... 8,674 70,826
Royal Bank of Scotland plc ........... 4,770 76,190
Safeway plc .......................... 5,344 26,852
Sainsbury J plc ...................... 11,701 93,790
Schroeders plc ....................... 1,969 35,939
Scottish & Newcastle plc ............. 3,109 36,107
Scottish Power plc ................... 5,894 60,556
Siebe plc ............................ 11,972 47,209
Slough Estates plc ................... 2,760 12,491
SmithKline Beecham plc ............... 32,794 458,337
Smiths Industries plc ................ 1,439 20,531
Southern Electric plc ................ 2,414 27,292
Stagecoach Holdings plc .............. 7,185 28,602
TI Group plc ......................... 3,201 17,243
Tarmac plc ........................... 5,045 9,443
Tate Lyle ORD plc .................... 2,148 11,830
Taylor Woodrow plc ................... 3,153 7,895
Tesco plc ............................ 40,347 114,962
Thames Water plc ..................... 1,992 38,115
The Berkeley Group plc ............... 1,015 7,456
Unilever plc ......................... 19,486 218,521
United Utilities plc ................. 3,521 48,800
Vodafone Group plc ................... 17,784 288,795
Williams plc ......................... 3,550 20,156
Wolseley plc ......................... 3,086 19,511
Zeneca Group plc ..................... 5,440 236,872
----------
TOTAL UNITED KINGDOM ............... 8,994,280
-----------
TOTAL COMMON STOCKS, RIGHTS
AND WARRANTS (87.5%)
(Cost $38,285,180).................. 42,728,080
-----------
PREFERRED STOCKS:
AUSTRALIA & NEW ZEALAND (0.2%)
AUSTRALIA (0.2%)
News Corp., Ltd. ..................... 12,888 78,418
-----------
OTHER EUROPEAN COUNTRIES (0.3%)
GERMANY (0.3%)
RWE AG ............................... 700 25,413
SAP AG (Non Voting) .................. 250 119,937
Volkswagen AG ........................ 500 24,902
------------
170,252
------------
TOTAL PREFERRED STOCKS (0.5%)
(Cost $249,996).................. 248,670
------------
</TABLE>
76
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------ --------------
<S> <C> <C>
SHORT-TERM DEBT
SECURITIES:
U.S. GOVERNMENTS (10.3%)
U.S. TREASURY BILLS
01/07/99 .......................... $ 40,000 $ 39,989
01/21/99 .......................... 906,000 904,126
02/04/99- ......................... 45,000 44,834
02/11/99 .......................... 1,425,000 1,418,548
02/18/99 .......................... 732,000 728,057
03/11/99 .......................... 540,000 535,743
04/01/99 .......................... 1,360,000 1,345,802
-----------
TOTAL SHORT-TERM DEBT
SECURITIES (10.3%)
(Amortized Cost $5,014,972)..... 5,017,099
-----------
TOTAL INVESTMENTS (98.3%)
(Cost/Amortized Cost
$43,550,148) ...................... 47,993,849
OTHER ASSETS
LESS LIABILITIES (1.7%) ........... 816,491
-----------
NET ASSETS (100%) ................... $48,810,340
===========
</TABLE>
<TABLE>
<CAPTION>
MARKET SECTOR DIVERSIFICATION (Unaudited)
<S> <C> <C>
As a Percentage of Total Common Stocks,
Preferred Stocks, Rights, and Warrants
Basic Materials ................ 3.3%
Business Services .............. 4.0
Capital Goods .................. 5.7
Consumer Cyclicals ............. 12.0
Consumer Non-Cyclicals ......... 19.7
Credit Sensitive
Banks ........................ 13.8
Financial Services ........... 3.4
Insurance .................... 7.8
Real Estate .................. 1.6
Utility--Electric ............ 2.7
Utility--Gas ................. 1.2
Utility--Telephone ........... 3.0
Investment Company ........... 0.2
----
Total Credit Sensitive ......... 33.7
Diversified .................... 1.1
Energy ......................... 7.0
Technology ..................... 13.5
-----
100.0%
=====
</TABLE>
- ----------
* Non-income producing
++ Issuer of this security is an affiliate of the Trust.
- - All, or a portion of securities held by broker as collateral for financial
futures contracts.
Glossary:
CVG--Certificate de Valeur Garantie
RNC--Risparmio Non-Convertible, Savings Shares
77
<PAGE>
EQ ADVISORS TRUST
BT INTERNATIONAL EQUITY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998, the Portfolio had the following futures contracts open:
(Note 1)
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF AGGREGATE EXPIRATION APPRECIATION
PURCHASES: CONTRACTS FACE VALUE DATE (DEPRECIATION)
- ---------------------------------------- ----------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
Australia All Ordinaries Index ......... 3 $ 132,105 Dec `98 $ 627
Australia All Ordinaries Index ......... 1 43,702 March `99 915
German Index ........................... 6 1,822,696 March `99 117,618
Hang Seng Index ........................ 2 130,683 Jan `99 (2,930)
IBEX Plus Index ........................ 4 280,129 Jan `99 11,608
Milan MIB 30 Index ..................... 1 216,308 March `99 19,791
CAC 40 Index ........................... 16 561,459 March `99 13,221
Nikkei 300 Index ....................... 29 544,184 March `99 (16,208)
Nikkei 225 Index ....................... 5 342,500 March `99 (15,450)
Financial Times 100 Index .............. 14 1,359,167 March `99 10,114
---------
$ 139,306
=========
</TABLE>
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/29/99 ......... 542 $ 907,636 $ 900,552 $ (7,084)
German Mark, expiring 1/29/99 ........... 3,448 2,061,990 2,072,155 10,165
Japanese Yen, expiring 1/29/99 .......... 93,591 812,421 832,658 20,237
--------
$ 23,318
========
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $39,230,618
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 672,763
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 5,607,974
Aggregate gross unrealized depreciation .......... (1,229,180)
------------
Net unrealized appreciation ...................... $ 4,378,794
============
Federal income tax cost of investments ........... $ 43,615,055
============
</TABLE>
<PAGE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$456,402 which was secured by collateral of
$484,745.
The Portfolio has a net capital loss carryforward of $266,434 which expires in
the year 2006.
See Notes to Financial Statements.
78
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCK:
BASIC MATERIALS (4.4%)
CHEMICALS (0.9%)
A. Schulman, Inc. ................... 1,300 $ 29,494
Calgon Carbon Corp. ................. 1,000 7,500
Cambrex Corp. ....................... 1,200 28,800
ChemFirst, Inc. ..................... 1,100 21,725
Dionex Corp.* ....................... 800 29,300
Geon Co. ............................ 900 20,700
Georgia Gulf Corp. .................. 1,200 19,275
NOVA Corp./Georgia* ................. 2,415 83,770
Octel Corp.* ........................ 500 6,938
Spartech Corp. ...................... 300 6,600
Stepan Co. .......................... 200 5,325
Wellman, Inc. ....................... 1,800 18,337
-----------
277,764
-----------
CHEMICALS--SPECIALTY (0.9%)
Airgas, Inc.* ....................... 3,000 26,812
Albemarle Corp. ..................... 1,040 24,700
Bush Boake Allen, Inc.* ............. 400 14,100
Ethyl Corp. ......................... 3,300 19,181
Ferro Corp. ......................... 1,300 33,800
General Chemical Group, Inc. ........ 500 6,938
H.B. Fuller Co. ..................... 300 14,437
Lawter International, Inc. .......... 1,100 12,787
LeaRonal, Inc. ...................... 200 6,775
Lilly Industries, Inc., Class A ..... 800 15,950
M.A. Hanna Co. ...................... 2,300 28,319
MacDermid, Inc. ..................... 600 23,475
Minerals Technologies, Inc. ......... 500 20,469
NCH Corp. ........................... 100 5,950
NL Industries, Inc. ................. 700 9,931
OM Group, Inc. ...................... 700 25,550
Terra Industries, Inc. .............. 600 3,713
The Carbide/Graphite Group,
Inc.* ............................. 200 2,950
-----------
295,837
-----------
METALS & MINING (0.9%)
ASARCO, Inc. ........................ 900 13,556
Battle Mountain Gold Co. ............ 7,200 29,700
Century Aluminum Co. ................ 500 4,719
Chase Industries, Inc.* ............. 600 6,262
Cleveland-Cliffs, Inc. .............. 400 16,125
Commercial Metals Co. ............... 600 16,650
Commonwealth Industries, Inc. ....... 300 2,813
Getchell Gold Corp.* ................ 1,300 35,425
Helca Mining Co.* ................... 2,200 7,975
Intermet Corp. ...................... 600 7,837
Lawson Products, Inc. ............... 200 4,600
MAXXAM, Inc.* ....................... 100 5,737
MDU Resources Group, Inc. ........... 1,500 39,469
Mueller Industries, Inc.* ........... 1,600 32,500
RTI International Metals, Inc.* ..... 300 4,200
Ryerson Tull, Inc., Class A* ........ 500 4,875
Southern Peru Ltd. .................. 1,300 12,269
Special Metals Corp.* ............... 600 5,363
Stillwater Mining Co.* .............. 800 32,800
Titanium Metals Corp. ............... 600 5,100
Wolverine Tube, Inc.* ............... 500 10,500
-----------
298,475
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
PAPER (0.8%)
Buckeye Technologies, Inc.* ......... 1,200 $ 17,925
Caraustar Industries, Inc. .......... 800 22,850
Chesapeake Corp. .................... 900 33,187
Gibson Greetings, Inc.* ............. 600 7,125
Ivex Packaging Corp.* ............... 400 9,300
Longview Fibre, Co. ................. 1,400 16,188
P. H. Glatfelter Co. ................ 900 11,138
Potlatch Corp. ...................... 900 33,187
Rayonier, Inc. ...................... 800 36,750
Rock-Tenn Co., Class A .............. 600 10,163
Schweitzer-Mauduit
International, Inc. ............... 500 7,719
Unisource Worldwide, Inc. ........... 2,300 16,675
Wausau-Mosinee Paper Corp. .......... 1,900 33,606
-----------
255,813
-----------
STEEL (0.9%)
AK Steel Holding Corp. .............. 2,000 47,000
Armco, Inc.* ........................ 3,000 13,125
Bethlehem Steel Corp.* .............. 5,609 46,975
Birmingham Steel Corp. .............. 900 3,769
Carpenter Technology Corp. .......... 700 23,756
Citation Corp.* ..................... 400 5,050
Gibralter Steel Corp.* .............. 400 9,100
Inland Steel Industries, Inc. ....... 1,386 23,389
Lone Star Technologies, Inc.* ....... 600 6,075
LTV Corp. ........................... 3,700 21,506
Maverick Tube Corp.* ................ 1,200 6,675
Metals USA, Inc.* ................... 1,200 11,700
National Steel Corp., Class B ....... 700 4,988
NS Group, Inc.* ..................... 1,800 7,988
Oregon Steel Mills, Inc. ............ 600 7,125
Quanex Corp. ........................ 900 20,306
Reliance Steel & Aluminum Co. 300 8,287
Rouge Industries, Inc., Class A ..... 600 5,250
Shaw Group, Inc.* ................... 800 6,400
Shiloh Industries, Inc.* ............ 200 2,625
Steel Dynamics, Inc.* ............... 1,100 12,925
Valmont Industries .................. 600 8,325
-----------
302,339
-----------
TOTAL BASIC MATERIALS ............. 1,430,228
-----------
BUSINESS SERVICES (11.4%)
ENVIRONMENT CONTROL (1.5%)
AgriBioTech, Inc.* .................. 1,200 15,525
Aqua Alliance, Inc.* ................ 5,600 11,550
Cadiz, Inc.* ........................ 1,300 9,913
California Water Service Group ...... 600 18,787
Catalytica, Inc.* ................... 1,900 34,200
CCC Information Services
Group* ............................ 1,200 20,700
CLARCOR, Inc. ....................... 950 19,000
CSG System International, Inc.* ..... 900 71,100
Dames & Moore Group ................. 700 9,013
Donaldson Co., Inc. ................. 1,400 29,050
E'Town Corp. ........................ 100 4,738
Eastern Environmental Services,
Inc.* ............................. 900 26,662
Ionics, Inc.* ....................... 400 11,975
Metal Management, Inc.* ............. 500 1,750
Mine Safety Appliances Co. .......... 100 7,100
</TABLE>
79
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Mississippi Chemical Corp. ........... 1,400 $ 19,600
ONEOK, Inc. .......................... 900 32,512
Philadelphia Suburban Corp. .......... 1,200 35,475
Rollins, Inc. ........................ 700 12,250
Roper Industries, Inc. ............... 1,500 30,562
Safety-Kleen Corp.* .................. 1,210 17,091
Superior Services, Inc.* ............. 700 14,044
Tejon Ranch Co. ...................... 300 5,963
Tetra Tech, Inc.* .................... 1,050 28,416
Thermo Ecotek Corp.* ................. 500 5,281
Waste Industries, Inc.* .............. 500 8,625
-----------
500,882
-----------
PRINTING, PUBLISHING, BROADCASTING (2.8%)
Ackerely Group, Inc. ................. 500 9,125
Adelphia Communications Corp.,
Class A* ........................... 700 32,025
American Media, Inc., Class A* ....... 800 4,450
Analysts International Corp. ......... 600 11,550
Banta Corp. .......................... 1,300 35,587
Big Flower Holdings, Inc.* ........... 500 11,031
Bowne & Co., Inc. .................... 1,700 30,387
Catalina Marketing Corp.* ............ 700 47,862
CD Radio, Inc.* ...................... 600 20,550
Century Communications Corp.,
Class A* ........................... 1,000 31,719
Consolidated Graphics, Inc.* ......... 400 27,025
Cox Radio Inc., Class A* ............. 300 12,675
EchoStar Communications Corp.,
Class A* ........................... 400 19,350
Emmis Communications Corp.,
Class A* ........................... 300 13,013
Gaylord Entertainment Co. ............ 900 27,112
HA-LO Industries, Inc.* .............. 800 30,100
Hollinger International, Inc. ........ 800 11,150
Houghton Mifflin Co. ................. 900 42,525
John Wiley & Sons, Inc., Class A 800 38,650
Jones Intercable, Inc., Class A* ..... 700 24,937
Journal Register Co.* ................ 400 6,000
Lee Enterprises, Inc. ................ 1,500 47,250
Mail-Well, Inc.* ..................... 1,300 14,869
McClatchy Co., Class A ............... 800 28,300
Media General, Inc., Class A ......... 800 42,400
Merrill Corp. ........................ 200 3,863
Metro Networks, Inc.* ................ 100 4,263
On Command Corp.* .................... 500 4,531
Paxson Communications Corp.* ......... 600 5,513
Petersen Companies, Inc.,
Class A* ........................... 700 23,713
Playboy Enterprises, Inc.,
Class B* ........................... 400 8,375
Scholastic Corp.* .................... 600 32,175
SFX Entertainment, Class A* .......... 800 43,900
Spelling Entertainment Group,
Inc.* .............................. 500 3,750
Standard Register Co. ................ 500 15,469
TCI Satellite Entertainment, Inc.,
Class A* ........................... 1,600 2,300
United International Holdings,
Inc., Class A* ..................... 1,300 25,025
United Television, Inc. .............. 100 11,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Westwood One, Inc.* .................. 800 $ 24,400
World Color Press, Inc.* ............. 1,100 33,481
Young Broadcasting Corp.,
Class A* ........................... 500 20,938
Zebra Technologies Corp.,
Class A* ........................... 900 25,875
-----------
908,713
-----------
PROFESSIONAL SERVICES (5.4%)
Abacus Direct Corp.* ................. 300 13,650
ABM Industries, Inc. ................. 900 31,162
Administaff, Inc.* ................... 200 5,000
ADVO, Inc.* .......................... 1,100 29,012
Alexander & Baldwin, Inc. ............ 1,700 39,525
Alternative Resources Corp.* ......... 200 2,125
Ambassadors International, Inc.* 200 2,950
American Retirement Corp.* ........... 900 14,119
AnswerThink Consulting Group,
Inc.* .............................. 400 10,750
APAC TeleServices, Inc.* ............. 900 3,403
Applied Graphics Technologies,
Inc.* .............................. 360 5,940
Aztec Technology Partners, Inc.* 1 4
Bacou USA, Inc.* ..................... 500 10,750
Berlitz International, Inc.* ......... 200 5,800
Billing Concepts Corp.* .............. 1,000 11,000
Borg-Warner Security Corp.* .......... 400 7,500
Boron, LePore & Associates,
Inc.* .............................. 400 13,800
Brightpoint, Inc.* ................... 1,600 22,000
Brookdale Living Communities,
Inc.* .............................. 500 9,750
Caribiner International, Inc.* ....... 600 5,475
CDI Corp.* ........................... 500 10,094
Century Business Services, Inc.* ..... 1,700 24,437
Cerner Corp.* ........................ 800 21,400
Circle International Group, Inc. ..... 600 12,300
Coach USA, Inc.* ..................... 800 27,750
Coinmach Laundry Corp.* .............. 400 5,200
Computer Learning Centers,
Inc.* .............................. 500 3,344
Computer Management Sciences,
Inc.* .............................. 300 5,213
Concentra Managed Care, Inc.* ........ 1,300 13,894
Concord Communications, Inc.* ........ 500 28,375
CORT Business Service Corp.* ......... 700 16,975
Cotelligent, Inc.* ................... 500 10,656
Coventry Health Care, Inc.* .......... 2,700 23,794
Crawford & Co., Class B .............. 1,300 20,069
Data Processing Resources
Corp.* ............................. 200 5,850
Deltek Systems, Inc.* ................ 300 5,063
DeVry, Inc.* ......................... 2,200 67,375
Dollar Thrifty Automotive
Group, Inc.* ....................... 1,000 12,875
E.W. Blanch Holdings, Inc. ........... 600 28,462
Education Management Corp.* .......... 600 14,175
EduTrek International, Inc.,
Class A* ........................... 500 2,875
Electronics for Imaging, Inc.* ....... 1,800 72,337
F.Y.I., Inc.* ........................ 600 19,200
</TABLE>
80
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Fisher Scientific International,
Inc.* .............................. 1,500 $ 29,906
Franklin Covey Co.* .................. 800 13,400
General Binding Corp. ................ 300 11,175
Getty Images, Inc.* .................. 700 12,031
Group Maintenance America
Corp.* ............................. 700 8,488
HealthPlan Services Corp. ............ 900 10,350
Icon CMT Corp.* ...................... 400 6,400
InaCom Corp.* ........................ 300 4,463
Indus International, Inc.* ........... 800 5,600
Informix Corp. ....................... 5,300 52,337
Interim Services, Inc.* .............. 1,400 32,725
ITT Educational Services, Inc.* ...... 500 17,000
Kendle International, Inc.* .......... 400 9,350
Kroll-O'Gara Co.* .................... 500 19,719
LabOne, Inc. ......................... 400 5,200
Labor Ready, Inc.* ................... 900 17,719
Landauer, Inc. ....................... 200 6,475
Lason, Inc.* ......................... 600 34,912
Learning Tree International,
Inc.* .............................. 200 1,813
MemberWorks, Inc.* ................... 300 8,850
Metamor Worldwide, Inc.* ............. 1,300 32,500
Metzler Group, Inc.* ................. 450 21,909
National Data Corp. .................. 1,300 63,294
Navigant International, Inc.* ........ 1 8
NCO Group, Inc.* ..................... 400 18,000
NFO Worldwide, Inc.* ................. 600 6,900
Norrell Corp. ........................ 500 7,375
Olsten Corp. ......................... 2,500 18,437
On Assignment, Inc.* ................. 400 13,800
Pegasystems, Inc.* ................... 300 1,247
Personnel Group of America,
Inc.* .............................. 1,200 21,000
Pharmaceutical Product
Development, Inc.* ................. 800 24,050
Pinkertons, Inc.* .................... 200 4,263
Pre-Paid Legal Services, Inc.* ....... 700 23,100
Preview Travel, Inc.* ................ 400 7,375
ProBusiness Services, Inc.* .......... 350 15,925
Profit Recovery Group
International, Inc.* ............... 300 11,231
Renaissance Worldwide, Inc.* ......... 400 2,450
Rent-Way, Inc.* ...................... 500 12,156
Romac International, Inc.* ........... 1,040 23,140
Seitel, Inc.* ........................ 1,200 14,925
SITEL Corp.* ......................... 1,400 3,413
Staff Leasing, Inc.* ................. 800 9,300
StaffMark, Inc.* ..................... 800 17,900
Strayer Education, Inc. .............. 300 10,575
Superior Consultant Holdings
Corp.* ............................. 200 8,700
Sybase, Inc.* ........................ 3,000 22,219
Sylvan Learning Systems, Inc.* ....... 1,600 48,800
TeleTech Holdings, Inc.* ............. 1,200 12,300
TMP Worldwide, Inc.* ................. 400 16,800
URS Corp.* ........................... 500 11,688
USWeb Corp.* ......................... 2,100 55,387
Valassis Communications, Inc.* ....... 1,400 72,275
Veritas DGC, Inc.* ................... 800 10,400
Vincam Group, Inc.* .................. 500 8,781
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Volt Information Sciences, Inc.* ..... 200 $ 4,513
Wackenhut Corp., Class A ............. 400 10,175
Wackenhut Corrections Corp.* ......... 600 17,175
Wallace Computer Services, Inc. ...... 1,500 39,562
Westaff, Inc.* ....................... 400 2,500
Whittman-Hart, Inc.* ................. 900 24,862
-----------
1,753,751
-----------
TRUCKING, SHIPPING (1.7%)
Air Express International Corp. ...... 1,200 26,100
AirNet Systems, Inc.* ................ 600 8,625
AMERCO* .............................. 300 8,381
American Freightways Corp.* .......... 900 10,378
Arnold Industries, Inc. .............. 800 12,900
Avondale Industries, Inc.* ........... 400 11,600
C.H. Robinson Worldwide, Inc. ........ 1,700 44,094
Consolidated Freightways Corp.* 1,000 15,875
Covenant Transport, Inc.,
Class A* ........................... 300 5,363
Dispatch Management Services
Corp.* ............................. 400 1,625
Eagle USA Airfreight, Inc.* .......... 100 2,450
Expeditors International of
Washington, Inc. ................... 1,000 42,000
Fritz Cos., Inc.* .................... 400 4,325
Greyhound Lines, Inc.* ............... 1,500 8,906
GulfMark Offshore, Inc.* ............. 500 7,875
Halter Marine Group, Inc.* ........... 800 3,900
Heartland Express, Inc.* ............. 1,100 19,250
Hvide Marine, Inc., Class A* ......... 1,100 5,500
Iron Mountain, Inc.* ................. 850 30,653
J.B. Hunt Transport Services, Inc. 800 18,400
Kirby Corp.* ......................... 775 15,452
Knight Transportation, Inc.* ......... 550 14,678
Landstar Systems, Inc.* .............. 400 16,300
M.S. Carriers, Inc.* ................. 400 13,175
OMI Corp.* ........................... 400 1,300
Overseas Shipholding Group, Inc. 1,000 16,063
Pittston BAX Group ................... 400 4,450
Roadway Express, Inc. ................ 600 8,663
Swift Transportation Co., Inc.* ...... 1,100 30,834
United Rentals (North America),
Inc.* .............................. 888 29,415
USFreightways Corp. .................. 800 23,300
Werner Enterprises, Inc. ............. 1,000 17,687
Wisconsin Central Transport
Corp.* ............................. 2,000 34,375
XTRA Corp. ........................... 800 33,100
Yellow Corp.* ........................ 900 17,212
-----------
564,204
-----------
TOTAL BUSINESS SERVICES ............ 3,727,550
-----------
CAPITAL GOODS (10.5%)
AEROSPACE (0.5%)
AAR Corp. ............................ 1,050 25,069
BE Aerospace, Inc.* .................. 1,200 25,200
Curtiss-Wright Corp. ................. 200 7,625
Cymer, Inc.* ......................... 900 13,162
Ducommun, Inc.* ...................... 150 2,072
GenCorp, Inc. ........................ 1,000 24,937
Hexcel Corp.* ........................ 700 5,863
Kaman Corp., Class A ................. 900 14,456
</TABLE>
81
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Kellstrom Industries, Inc.* ......... 400 $ 11,500
Moog, Inc., Class A* ................ 200 7,825
REMEC, Inc.* ........................ 500 9,000
Scott Technologies, Inc.,
Class A* .......................... 400 6,613
-----------
153,322
-----------
BUILDING & CONSTRUCTION (2.0%)
A.O. Smith Corp., Class B ........... 750 18,422
American Homestar Corp.* ............ 200 3,000
Ameron International Corp. .......... 400 14,800
Building One Services Corp.* ........ 1,700 35,487
Butler Manufacturing Co. ............ 300 6,713
Champion Enterprises, Inc.* ......... 1,500 41,062
Coachman Industries, Inc. ........... 800 21,000
Crossmann Communities, Inc.* ........ 300 8,288
Dal-Tile International, Inc.* ....... 1,200 12,450
Del Webb Corp. ...................... 800 22,050
Dycom Industries, Inc.* ............. 400 22,850
Elcor Corp. ......................... 600 19,388
Fairfield Communities, Inc.* ........ 1,300 14,381
Foster Wheeler Corp. ................ 1,100 14,506
Granite Construction, Inc. .......... 600 20,137
Integrated Electrical Services,
Inc.* ............................. 500 11,125
Jacobs Engineering Group, Inc.* 900 36,675
Kaufman & Broad Home Corp. .......... 1,600 46,000
M.D.C. Holdings, Inc. ............... 600 12,825
Morrison Knudsen Corp.* ............. 1,200 11,700
National R.V. Holdings, Inc.* ....... 300 7,725
NCI Building Systems, Inc.* ......... 700 19,687
Newport News Shipbuilding, Inc. 1,000 33,437
Nortek, Inc.* ....................... 500 13,813
Palm Harbor Homes, Inc.* ............ 700 17,631
Pulte Corp. ......................... 1,000 27,812
Republic Group, Inc. ................ 300 6,019
Service Experts, Inc.* .............. 600 17,550
Simpson Manufacturing Co.,
Inc.* ............................. 200 7,488
Standard Pacific Corp. .............. 800 11,300
Thomas Industries, Inc. ............. 600 11,775
Thor Industries, Inc. ............... 400 10,200
TJ International, Inc. .............. 400 10,275
Toll Brothers, Inc.* ................ 800 18,050
U.S. Home Corp.* .................... 400 13,300
Walter Industries, Inc.* ............ 1,900 29,094
Watts Industries, Inc., Class A ..... 700 11,638
Wilmar Industries, Inc.* ............ 300 6,094
Winnebago Industries, Inc. .......... 400 6,050
-----------
671,797
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (1.3%)
Advanced Lighting Technologies,
Inc.* ............................. 400 3,900
Apogee Enterprises, Inc. ............ 1,500 16,875
CalMat Co. .......................... 700 21,612
Centex Construction Products,
Inc. .............................. 500 20,312
Deltic Timber Corp. ................. 200 4,075
Fedders Corp. ....................... 1,000 5,813
Florida Rock Industries, Inc. ....... 700 21,700
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Griffon Corp.* ...................... 1,300 $ 13,812
Holophane Corp.* .................... 500 12,844
HomeBase, Inc.* ..................... 1,200 7,650
Hughes Supply, Inc. ................. 1,000 29,250
Juno Lighting, Inc. ................. 600 14,025
Kaydon Corp. ........................ 1,100 44,069
Lone Star Industries, Inc. .......... 800 29,450
Maxim Group, Inc.* .................. 500 12,000
Modine Manufacturing Co. ............ 900 32,625
Park Electrochemical Corp. .......... 200 5,725
Regal-Beloit Corp. .................. 600 13,800
Sturm Ruger & Co., Inc. ............. 600 7,163
Texas Industries, Inc. .............. 1,000 26,937
The Scotts Co.* ..................... 800 30,750
Toro Co. ............................ 800 22,800
Universal Forest Products, Inc. ..... 800 16,050
-----------
413,237
-----------
ELECTRICAL EQUIPMENT (4.8%)
ADTRAN, Inc.* ....................... 700 12,819
Advanced Energy Industries,
Inc.* ............................. 400 10,000
AMETEK, Inc. ........................ 1,200 26,775
Applied Power, Inc. Class A ......... 1,340 50,585
Arctic Cat, Inc. .................... 500 5,094
Artisan Components, Inc.* ........... 600 3,188
Barnes Group, Inc. .................. 600 17,475
Benchmark Electronics, Inc.* ........ 200 7,325
Comfort Systems USA, Inc.* .......... 1,800 32,175
CommScope, Inc.* .................... 1,700 28,581
Credence Systems Corp.* ............. 1,000 18,500
Cypress Semiconductor Corp.* ........ 2,600 21,612
Dallas Semiconductor Corp. .......... 1,100 44,825
Electro Rent Corp.* ................. 500 8,063
Electroglas, Inc.* .................. 500 5,875
Encore Wire Corp.* .................. 300 2,775
Esterline Technologies Corp.* ....... 700 15,225
Flowserve Corp. ..................... 1,700 28,156
Franklin Electric Co., Inc. ......... 200 13,500
General Semiconductor, Inc.* ........ 1,200 9,825
Genlyte Group, Inc.* ................ 200 3,750
Harman International Industries,
Inc. .............................. 700 26,687
Hussmann International, Inc. ........ 2,000 38,750
IGEN International, Inc.* ........... 300 9,188
Integrated Process Equipment
Corp.* ............................ 300 3,225
Kuhlman Corp. ....................... 500 18,937
Kulicke & Soffa Industries* ......... 900 15,975
Lam Research Corp.* ................. 1,700 30,281
Lattice Semiconductor Corp.* ........ 900 41,316
Level One Communications,
Inc.* ............................. 1,250 44,375
Marshall Industries* ................ 600 14,700
Mentor Graphics Corp. ............... 2,000 17,000
Methode Electronics, Inc.,
Class A ........................... 1,100 17,187
Mettler-Toledo International,
Inc.* ............................. 1,700 47,706
Micrel, Inc.* ....................... 600 33,000
Microchip Technology, Inc.* ......... 1,900 70,300
MMC Networks, Inc.* ................. 900 11,925
</TABLE>
82
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Nevada Power Co. ..................... 2,400 $ 62,400
Novellus Systems, Inc.* .............. 1,400 69,300
Oak Technology, Inc.* ................ 700 2,450
OEC Medical Systems, Inc.* ........... 200 6,288
PairGain Technologies, Inc.* ......... 2,400 18,450
Photronics, Inc.* .................... 800 19,175
Pioneer-Standard Electronics ......... 1,200 11,250
Plexus Corp.* ........................ 500 16,937
PMC-Sierra, Inc.* .................... 1,100 69,437
Powerwave Technologies, Inc.* ........ 100 1,863
Public Service Co. of New
Mexico, Inc. ....................... 1,800 36,787
Puerto Rican Cement Co., Inc. ........ 100 3,494
Qlogic Corp.* ........................ 300 39,262
Rambus, Inc.* ........................ 500 48,125
Rayovac Corp.* ....................... 1,300 34,694
Recoton Corp.* ....................... 600 10,763
ROHN Industries, Inc.* ............... 2,300 7,906
RPC, Inc. ............................ 400 2,950
Sawtek, Inc.* ........................ 600 10,500
Scotsman Industries, Inc. ............ 200 4,113
SDL, Inc.* ........................... 600 23,775
Semtech Corp.* ....................... 500 17,937
Sensormatics Electronics Corp.* ...... 1,800 12,488
Silicon Valley Group, Inc.* .......... 900 11,475
Siliconix, Inc.* ..................... 500 10,375
SIPEX Corp.* ......................... 700 24,587
Sunrise Medical, Inc.* ............... 400 4,975
Tecumseh Products Co., Class A 600 27,975
ThermoLase Corp.* .................... 600 2,738
ThermoQuest Corp.* ................... 400 5,175
TNP Enterprises, Inc. ................ 200 7,588
Ultratech Stepper, Inc.* ............. 500 8,000
Unitrode Corp.* ...................... 1,100 19,250
Veeco Instruments, Inc.* ............. 400 21,250
Vicor Corp.* ......................... 600 5,400
Vishay Intertechnology, Inc.* ........ 2,400 34,800
VLSI Technology, Inc.* ............... 1,700 18,594
Watsco, Inc. ......................... 800 13,400
X-Rite, Inc. ......................... 300 2,325
-----------
1,554,926
-----------
MACHINERY (1.9%)
Albany International Corp.,
Class A ............................ 820 15,530
Allied Products Corp. ................ 500 3,156
Anchor Gaming* ....................... 200 11,275
Applied Industrial Technologies,
Inc. ............................... 600 8,325
Astec Industries, Inc.* .............. 300 16,687
Baldor Electric Co. .................. 1,600 32,400
Briggs & Stratton Corp. .............. 900 44,887
Chart Industries, Inc. ............... 850 6,481
Cognex Corp.* ........................ 1,400 28,000
Columbus McKinnon Corp. .............. 600 10,800
Commercial Intertech Corp. ........... 300 3,881
DT Industries, Inc. .................. 200 3,150
Gardner Denver, Inc.* ................ 500 7,375
Gleason Corp. ........................ 500 9,063
Global Industrial Technologies,
Inc.* .............................. 800 8,550
Graco, Inc. .......................... 550 16,225
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
IDEX Corp. ........................... 1,100 $ 26,950
Imation Corp.* ....................... 1,500 26,250
JLG Industries, Inc. ................. 1,700 26,562
L.S. Starrett Co., Class A ........... 300 10,294
Lincoln Electric Holdings ............ 2,000 44,500
Lindsay Manufacturing Co. ............ 350 5,184
MagneTek, Inc.* ...................... 700 8,094
Manitowoc Co., Inc. .................. 600 26,625
MascoTech, Inc. ...................... 1,400 23,975
Milacron, Inc. ....................... 1,100 21,175
NACCO Industries, Inc. Class A 300 27,600
Nordson Corp. ........................ 400 20,550
OmniQuip International, Inc. ......... 200 3,000
Presstek, Inc.* ...................... 900 6,131
PRI Automation, Inc.* ................ 500 13,000
Robbins & Myers, Inc. ................ 300 6,638
Sequa Corp., Class A* ................ 200 11,975
Specialty Equipment Co.'s, Inc.* ..... 900 24,356
Stewart & Stevenson Services,
Inc. ............................... 1,100 10,725
Tennant Co. .......................... 400 16,050
Terex Corp.* ......................... 700 19,994
Thermo Fibertek, Inc.* ............... 1,300 9,263
UNOVA, Inc.* ......................... 1,400 25,375
Zoltec Co's., Inc.* .................. 100 919
-----------
640,970
-----------
TOTAL CAPITAL GOODS ................ 3,434,252
-----------
CONSUMER CYCLICALS (11.3%)
AIRLINES (0.7%)
AirTran Holdings, Inc.* .............. 1,300 3,413
Alaska Air Group, Inc.* .............. 1,200 53,100
America West Holdings Corp.,
Class B* ........................... 1,200 20,400
ASA Holdings, Inc. ................... 1,000 30,500
Atlantic Coast Airlines
Holdings* .......................... 600 15,000
Atlas Air, Inc.* ..................... 400 19,575
Aviall, Inc.* ........................ 900 10,575
Aviation Sales Co.* .................. 200 8,125
Mesaba Holdings, Inc.* ............... 700 14,437
Midwest Express Holdings, Inc.* 550 14,472
SkyWest, Inc. ........................ 700 22,881
Trans World Airlines, Inc.* .......... 2,400 11,550
-----------
224,028
-----------
APPAREL & TEXTILES (1.8%)
Blair Corp. .......................... 300 6,656
Buckle, Inc.* ........................ 300 7,200
Burlington Coat Factory
Warehouse Corp. .................... 800 13,050
Burlington Industries, Inc.* ......... 2,700 29,700
Cato Corp., Class A .................. 600 5,906
Charming Shoppes, Inc.* .............. 4,700 20,269
Collins & Aikman Corp.* .............. 2,300 11,787
Donna Karan International, Inc.* 1,500 11,437
Dress Barn, Inc.* .................... 500 7,594
Enesco Group, Inc. ................... 500 11,625
Finish Line, Inc., Class A* .......... 1,000 8,000
Footstar, Inc.* ...................... 1,200 30,000
G&K Services, Inc., Class A .......... 900 47,925
Gadzooks, Inc.* ...................... 200 1,550
</TABLE>
83
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Genesco, Inc.* ......................................................... 1,200 $ 6,825
Goody's Family Clothing, Inc.* ......................................... 600 6,019
Guess ?, Inc.* ......................................................... 900 4,331
Guilford Mills, Inc. ................................................... 800 13,350
Gymboree Corp.* ........................................................ 700 4,463
Hancock Fabrics, Inc. .................................................. 800 6,700
Hartmarx Corp.* ........................................................ 500 2,813
Interface, Inc. ........................................................ 2,100 19,491
International Speedway Corp.,
Class A* ............................................................. 600 24,300
Just For Feet, Inc.* ................................................... 1,100 19,112
Kellwood Co. ........................................................... 1,000 25,000
Men's Wearhouse, Inc.* ................................................. 900 28,575
Michaels Stores, Inc.* ................................................. 700 12,666
Nautica Enterprises, Inc.* ............................................. 1,200 18,000
OshKosh B'Gosh, Inc. ................................................... 500 10,094
Oxford Industries, Inc. ................................................ 100 2,825
Pacific Sunwear of California,
Inc.* ................................................................ 600 9,825
Phillips-Van Heusen Corp. .............................................. 1,500 10,781
Polymer Group, Inc.* ................................................... 500 4,969
Quicksilver, Inc.* ..................................................... 600 18,000
Russell Corp. .......................................................... 1,600 32,500
St. John Knits, Inc. ................................................... 700 18,200
Stage Stores, Inc.* .................................................... 1,300 12,187
Stein Mart, Inc.* ...................................................... 1,000 6,969
Stride Rite Corp. ...................................................... 1,800 15,750
Syms Corp.* ............................................................ 900 8,100
Timberland Co., Class A* ............................................... 100 4,556
Tom Brown, Inc.* ....................................................... 1,100 19,319
Wet Seal, Inc., Class A* ............................................... 300 9,056
-----------
587,475
-----------
AUTO RELATED (2.1%)
Action Performance Cos., Inc.* ......................................... 700 24,762
Aftermarket Technology Corp.* .......................................... 500 3,938
Arvin Industries, Inc. ................................................. 800 33,350
Avis Rent A Car, Inc.* ................................................. 1,000 24,187
Bandag, Inc. ........................................................... 500 19,969
Borg-Warner Automotive, Inc. ........................................... 800 44,650
BREED Technologies, Inc.* .............................................. 900 7,369
CSK Auto Corp.* ........................................................ 700 18,681
Detroit Diesel Corp.* .................................................. 200 4,138
Discount Auto Parts, Inc.* ............................................. 300 6,581
Excel Industries, Inc. ................................................. 200 3,500
Exide Corp. ............................................................ 900 14,625
Hayes Lemmerz International,
Inc.* ................................................................ 800 24,150
Keystone Automotive Industries,
Inc.* ................................................................ 900 18,844
Leasing Solutions, Inc.* ............................................... 700 2,844
Littelfuse, Inc.* ...................................................... 500 9,625
LoJack Corp.* .......................................................... 300 3,563
McGrath Rentcorp ....................................................... 400 8,800
Midas, Inc. ............................................................ 700 21,787
Miller Industries, Inc.* ............................................... 700 3,150
Monaco Coach Corp.* .................................................... 600 15,900
O'Reilly Automotive, Inc.* ............................................. 700 33,075
OEA, Inc. .............................................................. 800 9,450
Penske Motorsports, Inc.* .............................................. 100 2,663
Polaris Industries, Inc. ............................................... 800 31,350
Precision Castparts Corp. .............................................. 900 39,825
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Rental Service Corp.* .................................................. 600 $ 9,413
Renters Choice, Inc.* .................................................. 600 19,050
Rollins Truck Leasing Corp. ............................................ 1,750 25,812
Sauer, Inc. ............................................................ 800 6,050
SPX Corp.* ............................................................. 1,000 67,000
Standard Motor Products, Inc. .......................................... 200 4,850
Standard Products Co. .................................................. 600 12,225
Superior Industries, International 1,000 27,812
Titan International, Inc. .............................................. 600 5,700
Tower Automotive* ...................................................... 1,500 37,406
Tyler Corp.* ........................................................... 700 4,288
United Auto Group, Inc.* ............................................... 300 2,756
Westinghouse Air Brake Co. ............................................. 400 9,775
Wynn's International, Inc. ............................................. 700 15,487
-----------
678,400
-----------
AUTOS & TRUCKS (0.0%)
Wabash National Corp. .................................................. 600 12,188
-----------
FOOD SERVICES, LODGING (1.5%)
Applebee's International, Inc. ......................................... 900 18,562
Avado Brands, Inc. ..................................................... 1,600 13,300
Bob Evans Farms, Inc. .................................................. 1,700 44,306
Buffets, Inc.* ......................................................... 2,100 25,069
CEC Entertainment, Inc.* ............................................... 600 16,650
Cheesecake Factory, Inc.* .............................................. 850 25,208
Consolidated Products, Inc.* ........................................... 750 15,469
Extended Stay America, Inc.* ........................................... 2,100 22,050
Foodmaker, Inc.* ....................................................... 1,500 33,094
Host Marriott Services Corp.* .......................................... 1,100 11,413
IHOP Corp.* ............................................................ 300 11,981
Landry's Seafood Restaurants,
Inc.* ................................................................ 1,100 8,250
Lone Star Steakhouse & Saloon,
Inc.* ................................................................ 1,500 13,781
Marcus Corp. ........................................................... 900 14,625
NPC International, Inc.* ............................................... 500 6,031
Papa John's International, Inc.* ....................................... 700 30,887
PJ America, Inc.* ...................................................... 500 9,063
Planet Hollywood International,
Inc., Class A* ....................................................... 900 2,081
Primadonna Resorts* .................................................... 400 3,525
Prime Hospitality Corp.* ............................................... 2,400 25,350
Red Roof Inns, Inc.* ................................................... 1,000 16,875
Ruby Tuesday, Inc. ..................................................... 1,400 29,750
Ryan's Family Steak Houses,
Inc.* ................................................................ 1,300 16,088
Sbarro Inc.* ........................................................... 500 13,094
Sonic Corp.* ........................................................... 700 17,412
Suburban Lodges of America,
Inc.* ................................................................ 300 2,456
Sunterra Corp.* ........................................................ 1,300 19,500
Vail Resorts, Inc.* .................................................... 1,200 26,400
-----------
492,270
-----------
HOUSEHOLD FURNITURE, APPLIANCES (1.1%)
Aaron Rents, Inc. ...................................................... 500 7,563
Bassett Furniture Industries, Inc. .................................... 600 14,475
Central Garden & Pet Co.* .............................................. 1,000 14,375
Cost Plus, Inc./California* ............................................ 200 6,275
Department 56, Inc.* ................................................... 900 33,806
Garden Ridge Corp.* .................................................... 300 2,719
</TABLE>
84
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Haverty Furniture Cos., Inc. ......... 500 $ 10,500
Heilig-Meyers Co. .................... 3,000 20,062
Kimball International Inc.,
Class B ............................ 1,300 24,700
La-Z-Boy, Inc. ....................... 2,200 39,187
Lands' End, Inc.* .................... 400 10,775
Libbey, Inc. ......................... 800 23,150
Linens'n Things, Inc.* ............... 1,300 51,512
Meadowcraft, Inc.* ................... 400 4,475
Mikasa, Inc. ......................... 300 3,825
O'Sullivan Industries Holdings,
Inc.* .............................. 400 4,200
Pillowtex Corp. ...................... 400 10,700
SLI, Inc.* ........................... 650 18,038
Sotheby's Holdings, Inc., Class A 1,700 54,400
Spiegel, Inc., Class A* .............. 500 2,875
Spring Industries, Inc., Class A ..... 400 16,575
Windmere-Durable Holdings,
Inc.* .............................. 600 4,650
-----------
378,837
-----------
LEISURE RELATED (1.3%)
@Entertaiment, Inc.* ................. 900 6,075
Alternative Living Services, Inc.* 700 23,975
AMC Entertainment, Inc.* ............. 500 10,531
American Skiing Corp.* ............... 800 6,150
Authentic Fitness Corp. .............. 300 5,475
Aztar Corp.* ......................... 800 4,050
Bally Total Fitness Holding
Corp.* ............................. 1,000 24,875
Boyd Gaming Corp.* ................... 2,200 7,288
Carmike Cinemas, Inc., Class A* 500 10,156
Coleman Co., Inc.* ................... 500 4,563
Family Golf Centers, Inc.* ........... 900 17,775
Florida Panthers Holdings, Inc.* ..... 900 8,381
GC Cos., Inc.* ....................... 400 16,650
Grand Casinos, Inc.* ................. 2,100 16,931
GTECH Holdings Corp.* ................ 1,400 35,875
Harveys Casino Resorts ............... 300 8,306
Hollywood Park, Inc.* ................ 400 3,325
Marvel Enterprises, Inc.* ............ 900 5,569
Midway Games, Inc.* .................. 1,159 12,749
North Face, Inc.* .................... 400 5,200
ParkerVision, Inc.* .................. 200 4,700
Pegasus Systems, Inc.* ............... 400 14,400
Premier Parks, Inc.* ................. 2,200 66,550
Regis Corp. .......................... 700 28,000
Rio Hotel & Casino, Inc.* ............ 500 7,937
Scientific Games Holdings Corp.* 600 11,325
Silverleaf Resorts, Inc.* ............ 400 3,725
Speedway Motorsports, Inc.* .......... 300 8,550
Station Casinos, Inc.* ............... 500 4,094
Steinway Musical Instruments,
Inc.* .............................. 700 18,200
Travel Services International,
Inc.* .............................. 300 9,150
Trendwest Resorts, Inc.* ............. 400 5,000
West Marine, Inc.* ................... 300 2,963
-----------
418,493
-----------
PHOTO & OPTICAL (0.3%)
BMC Industries, Inc./Minn. ........... 500 3,125
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Cole National Corp.* ................. 500 $ 8,563
CPI Corp. ............................ 200 5,300
Metromedia International Group,
Inc.* .............................. 2,700 14,681
Oakley, Inc.* ........................ 1,500 14,156
Ocular Sciences, Inc.* ............... 300 8,025
Panavision, Inc.* .................... 24 297
Sola International, Inc.* ............ 900 15,525
Sunglass Hut International, Inc.* 2,300 16,100
Wesley Jessen Visioncare, Inc.* ...... 300 8,325
-----------
94,097
-----------
RETAIL--GENERAL (2.5%)
99 Cents Only Stores* ................ 275 13,509
American Eagle Outfitters, Inc.* 500 33,312
Ames Department Stores, Inc.* ........ 800 21,600
AnnTaylor Stores Corp.* .............. 700 27,606
Barnett, Inc.* ....................... 400 5,500
Brylane, Inc.* ....................... 100 2,325
Casey's General Stores, Inc. ......... 1,800 23,456
CDnow, Inc.* ......................... 300 5,400
CellStar Corp.* ...................... 1,500 10,219
Children's Place Retail Stores,
Inc.* .............................. 600 15,075
Claire's Stores, Inc. ................ 1,900 38,950
Corporate Express, Inc.* ............. 3,600 18,675
dELiA*s, Inc.* ....................... 300 3,750
Eagle Hardware & Garden, Inc.* 800 26,000
Elder-Beerman Stores Corp.* .......... 400 4,625
Fingerhut Cos., Inc. ................. 1,500 23,156
Fossil, Inc.* ........................ 200 5,750
Fred's, Inc. ......................... 400 6,000
Friedman's, Inc., Class A* ........... 800 8,200
Genesis Direct, Inc.* ................ 1,100 8,594
Guitar Center, Inc.* ................. 600 14,775
Handleman Co.* ....................... 900 12,656
Hanover Direct, Inc.* ................ 3,000 10,313
Hollywood Entertainment Corp.* 1,000 27,250
JLK Direct Distribution, Inc.,
Class A* ........................... 300 3,056
Jo-Ann Stores, Inc., Class A* ........ 700 11,288
K&G Men's Center, Inc.* .............. 100 888
Kenneth Cole Productions,
Class A* ........................... 300 5,625
Longs Drug Stores, Inc. .............. 1,200 45,000
Media Arts Groups, Inc.* ............. 400 5,625
Micro Warehouse, Inc.* ............... 1,200 40,575
Mills Corp. .......................... 700 13,913
Movado Group, Inc. ................... 600 15,975
Musicland Stores Corp.* .............. 1,600 23,900
N2K, Inc.* ........................... 400 5,225
Nine West Group, Inc.* ............... 600 9,338
Oneida Ltd. .......................... 800 11,850
ONSALE, Inc.* ........................ 100 4,006
Party City Corp.* .................... 300 4,331
PETSMART, Inc.* ...................... 3,900 42,900
Samsonite Corp.* ..................... 746 4,150
ShopKo Stores, Inc.* ................. 700 23,275
Southland Corp.* ..................... 3,900 7,434
Sports Authority, Inc.* .............. 1,000 5,250
Talbots, Inc. ........................ 500 15,688
</TABLE>
85
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Trans World Entertainment
Corp.* ............................. 550 $ 10,484
United Stationers, Inc.* ............. 1,300 33,800
Value City Department Stores,
Inc.* .............................. 300 4,181
WD-40 Co. ............................ 600 17,175
Wolverine World Wide, Inc. ........... 1,500 19,875
Zale Corp.* .......................... 1,600 51,600
-----------
803,103
-----------
TOTAL CONSUMER CYCLICALS ........... 3,688,891
-----------
CONSUMER NON-CYCLICALS (12.8%)
BEVERAGES (0.5%)
Adolph Coors Co., Class B ............ 1,200 67,725
Aquarion Co. ......................... 600 24,600
Beringer Wine Estates Holdings,
Inc., Class B* ..................... 600 26,813
Boston Beer Co., Inc., Class A* ...... 1,200 10,200
Canandaigua Brands, Inc.,
Class A* ........................... 600 34,687
Robert Mondavi Corp., Class A* 200 8,175
-----------
172,200
-----------
CONTAINERS (0.6%)
Ball Corp. ........................... 900 41,175
CUNO, Inc.* .......................... 800 13,000
EarthShell, Corp.* ................... 600 7,163
First Brands Corp. ................... 1,300 51,269
Gaylord Container Corp.,
Class A* ........................... 1,800 11,025
Greif Brothers Corp., Class A ........ 600 17,512
Interpool, Inc. ...................... 600 10,050
Shorewood Packaging Corp.* ........... 650 13,325
Silgan Holdings, Inc.* ............... 600 16,678
Zila, Inc.* .......................... 800 7,900
-----------
189,097
-----------
DRUGS (3.5%)
Agouron Pharmaceuticals, Inc.* ....... 1,200 70,500
Algos Pharmaceuticals Corp.* ......... 500 13,000
Alkermes, Inc.* ...................... 700 15,531
Alpharma, Inc. ....................... 800 28,250
AmeriSource Health Corp.,
Class A* ........................... 700 45,500
Andrx Corp.* ......................... 300 15,375
Aviron* .............................. 600 15,525
AXYS Pharmaceuticals, Inc.* .......... 500 2,938
Barr Laboratories, Inc.* ............. 500 24,000
Bio-Rad Laboratories, Inc.,
Class A* ........................... 500 10,500
Block Drug Co., Inc., Class A ........ 715 31,013
Carter-Wallace, Inc. ................. 1,200 23,550
Cephalon, Inc.* ...................... 1,300 11,700
ChiRex, Inc.* ........................ 500 10,687
Columbia Laboratories, Inc.* ......... 1,100 3,369
Coulter Pharmaceutical, Inc.* ........ 500 15,000
Duane Reade, Inc.* ................... 600 23,100
Dura Pharmaceuticals, Inc.* .......... 1,400 21,262
EntreMed, Inc.* ...................... 200 4,200
Fuisz Technologies Ltd.* ............. 800 10,300
GelTex Pharmaceuticals, Inc.* ........ 300 6,788
Genovese Drug Stores, Inc. ........... 300 8,550
Gensia Sicor, Inc.* .................. 3,500 15,859
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ----------------
<S> <C> <C>
Gilead Sciences, Inc.* ............... 1,100 $ 45,169
Guilford Pharmaceuticals, Inc.* ...... 400 5,700
Herbalife International, Class A ..... 800 11,400
ICOS Corp.* .......................... 1,100 32,725
IDEC Pharmaceuticals Corp.* .......... 600 28,200
ImClone Systems, Inc.* ............... 800 7,250
Immune Response Corp.* ............... 900 9,787
Incyte Pharmaceuticals, Inc.* ........ 800 29,900
Isis Pharmaceuticals, Inc.* .......... 800 10,350
Jones Medical Industries, Inc. ....... 1,000 36,500
Ligand Pharmaceuticals, Inc.,
Class B* ........................... 1,400 16,275
Lipsome Co., Inc.* ................... 1,700 26,244
Medicis Pharmaceutical Corp.,
Class A* ........................... 600 35,775
MedImmune, Inc.* ..................... 800 79,550
Millennium Pharmaceuticals,
Inc.* .............................. 1,000 25,875
Miravant Medical Technologies * 500 6,438
NBTY, Inc.* .......................... 1,300 9,263
NCS HealthCare, Inc., Class A* ....... 500 11,875
NeXstar Pharmaceuticals, Inc.* ....... 1,300 12,025
Omega Protein Corp.* ................. 800 8,100
PathoGenesis Corp.* .................. 600 34,800
Perrigo Co.* ......................... 2,400 21,150
PharMerica, Inc.* .................... 3,500 21,000
Roberts Pharmaceutical Corp.* ........ 1,000 21,750
Sepracor, Inc.* ...................... 900 79,312
SEQUUS Pharmaceuticals, Inc.* 1,300 26,325
Triangle Pharmaceuticals, Inc.* ...... 600 8,175
Twinlab Corp.* ....................... 800 10,500
US Bioscience, Inc.* ................. 400 2,875
Vertex Pharmaceuticals, Inc.* ........ 800 23,800
ViroPharma, Inc.* .................... 400 3,725
VIVUS, Inc.* ......................... 1,500 3,891
Zonagen, Inc.* ....................... 500 9,562
-----------
1,141,763
-----------
FOODS (1.3%)
Agribrands International, Inc.* ...... 400 12,000
American Italian Pasta Co.,
Class A* ........................... 700 18,462
Chiquita Brands International,
Inc. ............................... 1,300 12,431
Corn Products International, Inc. 1,200 36,450
Dreyer's Grand Ice Cream, Inc. ....... 1,100 16,638
Earthgrains Co. ...................... 1,400 43,312
Imperial Holly Corp. ................. 700 5,688
International Multifoods Corp. ....... 600 15,488
J.M. Smucker Co., Class A ............ 1,300 32,175
Lance, Inc. .......................... 900 17,944
Michael Foods, Inc. .................. 500 15,000
Performance Food Group, Co.* ......... 500 14,063
Pilgrims Pride Corp. ................. 300 5,981
Rainforest Cafe, Inc.* ............... 600 3,638
Ralcorp Holdings, Inc.* .............. 1,380 25,185
Richfood Holdings, Inc. .............. 1,500 31,125
Smithfield Foods, Inc.* .............. 1,100 37,262
Universal Foods Corp. ................ 2,300 63,106
Vlasic Foods International, Inc.* 1,000 23,812
Zapata Corp. ......................... 500 6,125
-----------
435,885
-----------
</TABLE>
86
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
HOSPITAL SUPPLIES & SERVICES (6.1%)
ABR Information Services, Inc.* 1,100 $ 21,587
Acuson Corp.* ........................ 1,000 14,875
ADAC Laboratories* ................... 800 15,975
Advance Paradigm, Inc.* .............. 400 14,000
Advanced Tissue Sciences, Inc.* ...... 2,000 5,188
Affymetrix, Inc.* .................... 500 12,188
ALARIS Medical, Inc.* ................ 2,000 11,750
American HomePatient, Inc.* .......... 1,700 3,081
American Oncology Resources,
Inc.* .............................. 1,000 14,562
AmeriPath, Inc.* ..................... 1,500 13,406
Apria Healthcare Group, Inc.* ........ 1,300 11,619
Arrow International, Inc. ............ 500 15,687
Ballard Medical Products ............. 1,100 26,744
Bindley Western Industries, Inc. ..... 800 39,400
Bio-Technology General Corp.* ........ 1,600 11,100
Biomatrix, Inc.* ..................... 300 17,475
BRC Holdings, Inc.* .................. 700 13,125
Capital Senior Living Corp.* ......... 500 6,969
CareMatrix Corp.* .................... 400 12,250
Cell Genesys, Inc.* .................. 1,500 9,000
Chemed Corp. ......................... 400 13,400
Closure Medical Corp.* ............... 300 8,944
Coherent, Inc.* ...................... 1,000 12,438
CONMED Corp.* ........................ 400 13,200
Cooper Cos., Inc.* ................... 800 16,550
COR Therapeutics, Inc.* .............. 600 7,950
Covance, Inc.* ....................... 2,400 69,900
Curative Health Services, Inc.* ...... 600 20,100
Cytyc Corp.* ......................... 500 12,875
Datascope Corp.* ..................... 400 9,200
Dendrite International, Inc.* ........ 700 17,478
Diagnostic Products Corp. ............ 200 6,225
Envoy Corp.* ......................... 700 40,775
Express Scripts, Inc., Class A* ...... 1,300 87,262
Genesis Health Ventures, Inc.* ....... 1,200 10,500
Haemonetics Corp.* ................... 800 18,200
Hanger Orthopedic Group, Inc.* 400 9,000
Henry Schein, Inc.* .................. 800 35,800
Heska Corp./Mass.* ................... 1,500 6,656
Hologic, Inc.* ....................... 600 7,275
Hooper Holmes, Inc. .................. 400 11,600
Human Genome Sciences, Inc.* ......... 1,000 35,562
IDEXX Laboratories, Inc.* ............ 1,300 34,978
IDX Systems Corp.* ................... 400 17,600
IMPATH, Inc.* ........................ 500 13,250
Inhale Therapeutic Systems, Inc.* 500 16,500
Ivacare Corp. ........................ 1,100 26,400
IVAX Corp.* .......................... 3,100 38,556
K-V Pharmaceutical Co.,
Class B* ........................... 600 12,413
Life Technologies, Inc. .............. 400 15,550
Lifecore Biomedical, Inc.* ........... 600 6,150
LTC Healthcare, Inc.* ................ 90 236
Magellan Health Services, Inc.* ...... 1,800 15,075
Mariner Post-Acute Network,
Inc.* .............................. 1,900 8,669
Maxxim Medical, Inc.* ................ 400 11,900
Medaphis Corp.* ...................... 3,600 11,813
Medical Manager, Corp.* .............. 400 12,550
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
MedQuist, Inc.* ...................... 600 $ 23,700
Mentor Corp.* ........................ 800 18,750
Mid Atlantic Medical Services,
Inc.* .............................. 1,200 11,775
MiniMed, Inc.* ....................... 300 31,425
Neurogen Corp.* ...................... 500 8,750
NovaCare Corp.* ...................... 2,800 7,000
Novoste Corp.* ....................... 300 8,513
Organogenesis, Inc.* ................. 900 10,125
Orthodontic Centers of America,
Inc.* .............................. 1,000 19,437
Owens & Minor, Inc. .................. 1,000 15,750
Oxford Health Plans, Inc.* ........... 2,700 40,162
PAREXEL International Corp.* ......... 800 20,000
Patterson Dental Co.* ................ 1,050 45,675
Pediatrix Medical Group, Inc.* ....... 600 35,962
PhyCor, Inc.* ........................ 3,100 21,119
Phymatrix, Inc.* ..................... 1,900 4,156
Physician Computer Network,
Inc.* .............................. 700 35
Physician Reliance Network,
Inc.* .............................. 700 9,188
Priority Healthcare Corp.,
Class B* ........................... 500 25,937
Protein Design Labs, Inc.* ........... 600 13,875
Province Healthcare Co.* ............. 400 14,350
PSS World Medical, Inc.* ............. 2,800 64,400
Quest Diagnostics, Inc.* ............. 700 12,469
Regeneron Pharmaceuticals, Inc,* 900 6,638
Renal Care Group, Inc.* .............. 1,550 44,659
Res-Care, Inc.* ...................... 600 14,812
ResMed, Inc.* ........................ 600 27,225
Respironics, Inc.* ................... 900 18,028
Rural/Metro Corp.* ................... 600 6,563
Sabratek Corp.* ...................... 600 9,825
SangStat Medical Corp.* .............. 800 17,000
Scios, Inc.* ......................... 1,000 10,375
Serologicals Corp.* .................. 1,050 31,500
Sierra Health Services, Inc.* ........ 1,100 23,169
Sun Healthcare Group, Inc.* .......... 2,200 14,438
Sunrise Assisted Living, Inc.* ....... 500 25,937
Synetic, Inc.* ....................... 600 26,400
Techne Corp.* ........................ 800 16,900
Theragenics Corp.* ................... 1,200 20,175
Thermo BioAnalysis Corp.* ............ 600 7,950
Thermo Cardiosystems, Inc. ........... 500 5,219
ThermoTrex Corp.* .................... 300 2,569
Transition Systems, Inc.* ............ 500 7,500
Transkaryotic Therapies, Inc.* ....... 800 20,300
United Payors & United
Providers, Inc.* ................... 700 19,950
Vencor, Inc.* ........................ 1,600 7,200
Ventana Medical Systems, Inc.* ....... 600 12,975
Veterinary Centers of America,
Inc* ............................... 900 17,944
Vical, Inc.* ......................... 300 4,256
VISX, Inc.* .......................... 400 34,975
VWR Scientific Products Corp.* ....... 600 10,425
West Co., Inc. ....................... 557 19,878
Xomed Surgical Products, Inc.* ....... 600 19,200
-----------
1,969,049
-----------
</TABLE>
87
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
RETAIL--FOOD (0.4%)
Advantica Restaurant Group,
Inc.* .............................. 1,100 $ 6,806
Dave & Busters, Inc.* ................ 300 6,919
Fleming Cos., Inc. ................... 2,100 21,787
Great Atlantic & Pacific Tea Co.,
Inc. ............................... 500 14,812
Hain Food Group, Inc.* ............... 400 10,000
Ingles Markets, Inc., Class A ........ 200 2,188
Luby's Cafeterias, Inc. .............. 700 10,806
Petco Animal Supplies, Inc.* ......... 800 8,050
Ruddick Corp. ........................ 1,000 23,000
Smart & Final, Inc. .................. 300 2,888
United Natural Foods, Inc.* .......... 200 4,825
Wild Oats Markets, Inc.* ............. 400 12,600
-----------
124,681
-----------
SOAPS & TOILETRIES (0.2%)
Chattem, Inc.* ....................... 400 19,150
Church & Dwight Co., Inc. ............ 600 21,563
French Fragrances, Inc.* ............. 900 6,525
Nature's Sunshine Products, Inc. ..... 500 7,625
Playtex Products, Inc.* .............. 1,200 19,275
-----------
74,138
-----------
TOBACCO (0.2%)
Consolidated Cigar Holdings,
Inc.* .............................. 100 1,769
DIMON, Inc. .......................... 1,700 12,644
General Cigar Holdings, Inc.* ........ 700 6,081
Universal Corp. ...................... 1,300 45,662
-----------
66,156
-----------
TOTAL CONSUMER NON-CYCLICALS 4,172,969
-----------
CREDIT SENSITIVE (26.1%)
BANKS (8.0%)
Anchor Bancorp Wisconsin, Inc. ....... 800 19,200
Area Bancshares Corp. ................ 500 13,125
Arthur J. Gallagher & Co. ............ 600 26,475
BancFirst Corp. ...................... 200 7,175
BancFirst Ohio Corp. ................. 500 15,188
BancorpSouth, Inc. ................... 1,100 19,869
BancWest Corp. ....................... 700 33,600
Bank of Granite Corp. ................ 450 12,431
Banknorth Group, Inc. ................ 700 26,337
Bay View Capital Corp. ............... 300 6,506
BISYS Group, Inc.* ................... 1,000 51,625
Brenton Banks, Inc. .................. 440 7,370
Brookline Bancorp, Inc. .............. 600 6,900
BSB Bancorp, Inc. .................... 200 6,575
BT Financial Corp. ................... 200 5,475
Capital City Bank Group, Inc. ........ 150 4,144
Carolina First Corp. ................. 1,000 25,312
CashAmerica International, Inc. ...... 1,100 16,706
Cathay Bancorp, Inc. ................. 200 8,200
Century South Banks, Inc. ............ 500 13,938
CFSB Bancorp, Inc. ................... 400 9,750
Chemical Financial Corp. ............. 825 28,050
Chittenden Corp. ..................... 800 25,600
CNB Bancshares, Inc. ................. 1,125 52,453
Columbia Banking Systems, Inc.* 200 3,700
Commerce Bancorp, Inc. ............... 631 33,127
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Commercial Federal Corp. ............. 2,089 $ 48,439
Commonwealth Bancorp, Inc. ........... 800 12,450
Community Bank System, Inc. .......... 100 2,931
Community First Bankshares,
Inc. ............................... 1,900 40,019
Community Trust Bancorp, Inc. ........ 400 9,400
CORUS Bankshares, Inc. ............... 300 9,675
Cullen/Frost Bankers, Inc. ........... 1,000 54,875
CVB Financial Corp. .................. 330 7,425
Dime Community Banshares, Inc. 400 8,250
Downey Financial Corp. ............... 625 15,898
F&M Bancorporation, Inc. ............. 430 13,008
F&M National Corp. ................... 900 26,944
Farmers Capital Bank Corp. ........... 200 7,500
First Citizens BankShares, Inc.,
Class A ............................ 300 27,000
First Commerce Bankshares, Inc.,
Class B ............................ 400 11,200
First Commonwealth Financial
Corp. .............................. 900 22,050
First Federal Capital Corp. .......... 400 6,550
First Financial Bancorp .............. 1,500 43,406
First Financial Bankshares, Inc. ..... 330 11,550
First Financial Corp./Indiana ........ 200 9,875
First Financial Holdings, Inc. ....... 500 9,500
First Indiana Corp. .................. 800 16,000
First Merchants Corp. ................ 700 18,287
First Midwest Bancorp, Inc. .......... 1,030 39,204
First Republic Bank* ................. 500 12,531
First Sentinel Bancorp, Inc. ......... 1,382 11,229
First Source Corp. ................... 620 20,770
First United Bankshares, Inc. ........ 800 14,200
First Western Bancorp, Inc. .......... 700 22,225
FirstBank Corp./Puerto Rico .......... 1,400 42,262
FirstFed Financial Corp.* ............ 1,200 21,450
Flagstar Bancorp, Inc. ............... 100 2,613
Frontier Financial Corp.* ............ 100 4,575
GBC Bancorp .......................... 500 12,875
Grand Premier Financial, Inc.* ....... 900 11,025
Greater Bay Bancorp .................. 200 6,750
Hancock Holding Corp. ................ 600 27,300
Harbor Florida Bancorp, Inc. ......... 400 4,475
Harleysville National Corp. .......... 200 7,800
Harris Financial, Inc. ............... 500 6,813
Horizon Bancorp., Inc. ............... 300 10,181
HUBCO, Inc. .......................... 1,824 54,948
Imperial Bancorp* .................... 1,250 20,781
Independence Community Bank
Corp. .............................. 3,100 49,406
International Bancshares Corp. ....... 500 25,312
InterWest Bancorp, Inc. .............. 1,150 25,444
Irwin Financial Corp. ................ 400 10,875
Jefferson Savings Bancorp, Inc. ...... 600 7,875
JSB Financial, Inc. .................. 300 16,312
MAF Bancorp, Inc. .................... 1,250 33,125
MainStreet Financial, Corp. .......... 600 27,862
Merchants New York Bancorp,
Inc. ............................... 400 14,475
Michigan Financial Corp. ............. 200 6,800
Mid-America Bancorp .................. 206 5,588
Mississippi Valley Bancshares,
Inc. ............................... 100 3,375
</TABLE>
88
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
National Bancorp of Alaska, Inc. 700 $ 23,625
National City Bancshares, Inc. ........ 420 15,671
National Penn Bancshares, Inc. ........ 375 10,219
NTB Bancorp, Inc. ..................... 699 16,339
Ocean Financial Corp. ................. 700 11,638
Old National Bancorp .................. 920 51,290
Omega Financial Corp. ................. 600 18,150
One Valley Bancorp, Inc. .............. 1,600 52,600
Pacific Capital Bancorp ............... 600 15,450
Park National Corp. ................... 200 20,600
PBOC Holdings, Inc.* .................. 600 6,150
Peoples Bancorp, Inc. ................. 1,400 15,225
PFF Bancorp, Inc.* .................... 400 6,400
Premier Bancshares, Inc. .............. 700 18,331
Prime Bancorp, Inc. ................... 500 7,875
Provident Bankshares Corp. ............ 1,210 30,099
Republic Bancorp, Inc. ................ 975 13,284
Republic Bancshares, Inc.* ............ 400 5,250
Republic Security Financial Corp. 800 9,700
Richmond County Financial
Corp. ............................... 900 14,456
Riggs National Corp.
(Washington D.C.) ................... 700 14,263
Roslyn Bancorp, Inc. .................. 1,900 40,850
S & T Bancorp, Inc. ................... 760 20,947
Sandy Spring Bancorp, Inc. ............ 500 15,063
Shoreline Financial Corp. ............. 500 13,188
Signal Corp. .......................... 450 15,413
Silicon Valley Bancshares* ............ 800 13,625
SIS Bancorp, Inc. ..................... 300 13,575
Sky Financial Group, Inc. ............. 1,647 43,543
Southwest Bancorporation of
Texas, Inc.* ........................ 700 12,513
St. Paul Bancorp, Inc. ................ 1,800 48,994
Staten Island Bancorp, Inc. ........... 1,600 31,900
Sterling Bancshares, Inc., Texas ...... 1,450 21,569
Sterling Financial Corp. .............. 400 16,600
Susquehanna Bancshares, Inc. .......... 1,400 28,656
Texas Regional Bancshares, Inc.,
Class A ............................. 500 12,531
TR Financial Corp. .................... 700 27,562
Triangle Bancorp, Inc. ................ 850 13,441
Trust Co. of New Jersey ............... 600 14,700
Trustco Bank Corp. (New York) ......... 1,205 36,150
U.S.B. Holding Co., Inc. .............. 440 7,425
United Bankshares, Inc. ............... 2,000 53,000
USBANCORP, Inc. ....................... 700 13,913
UST Corp. ............................. 1,200 28,275
Webster Financial Corp. ............... 900 24,694
WesBanco, Inc. ........................ 900 26,550
West Coast Bancorp (Oregon) ........... 220 4,620
Westamerica Bancorporation ............ 1,500 55,125
Western Bancorp ....................... 900 26,325
Westernbank Puerto Rico ............... 1,100 17,462
Whitney Holding Corp. ................. 1,000 37,500
-----------
2,603,843
-----------
FINANCIAL SERVICES (2.7%)
Aames Financial Corp. ................. 2,600 8,288
Advanta Corp., Class A ................ 800 10,600
Advest Group, Inc. .................... 400 7,400
Affiliated Managers Group, Inc.* 600 17,925
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
AMCORE Financial, Inc. ................ 1,100 $ 25,180
AmeriCredit Corp.* .................... 2,200 30,387
Ameritrade Holding Corp.,
Class A* ............................ 400 12,600
Amplicon, Inc. ........................ 300 4,519
Arcadia Financial Ltd.* ............... 2,100 7,613
BankAtlantic Bancorp, Inc.,
Class B ............................. 1,300 9,263
BOK Financial Corp.* .................. 103 4,854
Charter Municipal Mortgage
Acceptance Co. ...................... 600 7,275
Citizens Banking Corp. ................ 700 23,625
Conning Corp. ......................... 700 14,525
ContiFinancial Corp.* ................. 1,000 7,125
Credit Acceptance Corp.* .............. 600 4,388
Dain Rauscher Corp. ................... 500 14,750
Delta Financial Corp.* ................ 900 5,344
Doral Financial Corp. ................. 1,500 33,187
DVI, Inc.* ............................ 300 5,438
Eaton Vance Corp. ..................... 1,100 22,962
Enhance Financial Services
Group, Inc. ......................... 900 27,000
EVEREN Capital Corp. .................. 600 13,650
Financial Federal Corp.* .............. 500 12,375
First Sierra Financial, Inc.* ......... 600 7,350
FirstCity Financial Corp.* ............ 300 3,881
FNB Corp. ............................. 705 19,916
Freedom Securities Corp. .............. 600 9,075
Friedman, Billings, Ramsey
Group, Inc., Class A ................ 1,700 11,050
Hambrecht & Quist Group* .............. 900 20,419
Headlands Mortgage Corp.* ............. 800 16,750
HealthCare Financial Partners,
Inc.* ............................... 500 19,937
IMC Mortgage Co.* ..................... 900 253
Impac Mortgage Holdings, Inc. ......... 1,000 4,563
Imperial Credit Commercial
Mortgage Investment ................. 900 8,438
Imperial Credit Industries, Inc.* ..... 1,200 10,050
International Telecommunication
Data Systems, Inc.* ................. 300 4,425
Investment Technology Group,
Inc.* ............................... 200 12,412
Investors Financial Services
Corp. ............................... 300 17,887
Jeffries Group, Inc. .................. 700 34,737
John Nuveen Co., Class A .............. 200 7,425
Life USA Holding, Inc. ................ 800 10,300
Metris Cos., Inc. ..................... 744 37,410
Morgan Keegan, Inc. ................... 1,400 26,337
National Processing, Inc.* ............ 1,200 6,600
Oakwood Homes Corp. ................... 1,700 25,819
Oriental Financial Group, Inc. ........ 533 16,690
Paymentech, Inc.* ..................... 500 9,250
PEC Israel Economic Corp.* ............ 300 8,625
Pioneer Group, Inc. ................... 900 17,775
Queens County Bancorp, Inc. ........... 700 20,825
Reliance Bancorp, Inc. ................ 400 11,125
Resource America, Inc., Class A 900 8,156
Resource Bankshares Mortgage
Group, Inc. ......................... 400 6,625
Southwest Securities Group, Inc. 800 16,100
</TABLE>
89
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Triad Guaranty, Inc.* ................. 600 $ 13,237
UMB Financial Corp. ................... 700 32,112
UniCapital Corp.* ..................... 1,100 8,113
United Co's. Financial Corp. .......... 800 2,700
Varlen Corp. .......................... 625 14,414
Vermont Financial Services
Group Corp. ......................... 700 23,275
Westcorp .............................. 800 5,550
Wilshire Financial Services
Group, Inc.* ........................ 500 313
WSFS Financial Corp. .................. 600 10,125
-----------
870,317
-----------
INSURANCE (3.4%)
Alfa Corp. ............................ 1,200 29,100
American Annuity Group, Inc. .......... 300 6,900
American Heritage Life
Investment Corp. .................... 600 14,662
Amerin Corp.* ......................... 600 14,175
AmerUs Life Holdings, Inc.,
Class A ............................. 800 17,900
Argonaut Group, Inc. .................. 700 17,150
ARM Financial Group, Inc.,
Class A ............................. 800 17,750
Capital Re Corp. ...................... 700 14,044
Capital Transamerica Corp. ............ 500 9,344
Chartwell Re Corp. .................... 200 4,750
Chicago Title Corp. ................... 500 23,469
CMAC Investments Corp. ................ 1,000 45,937
CNA Surety Corp. ...................... 400 6,300
Commerce Group, Inc. .................. 900 31,894
Delphi Financial Group, Inc.,
Class A* ............................ 714 37,440
Executive Risk, Inc. .................. 500 27,469
FBL Financial Group, Inc.,
Class A ............................. 900 21,825
Fidelity National Financial, Inc. ..... 990 30,195
First American Financial Corp. ........ 2,150 69,069
Foremost Corp. of America ............. 600 12,600
FPIC Insurance Group, Inc.* ........... 300 14,344
Frontier Insurance Group, Inc. ........ 1,060 13,647
Fund American Enterprises
Holdings, Inc. ...................... 200 28,012
Guarantee Life Cos., Inc. ............. 500 9,250
Harleysville Group, Inc. .............. 500 12,906
HCC Insurance Holdings, Inc. .......... 1,000 17,625
Highlands Insurance Group, Inc.* 200 2,613
HSB Group, Inc. ....................... 1,400 57,487
INspire Insurance Solutions, Inc.* 200 3,675
LandAmerica Financial Group,
Inc. ................................ 400 22,325
Liberty Corp. ......................... 592 29,156
Markel Corp.* ......................... 200 36,200
Meadowbrook Insurance Group,
Inc. ................................ 100 1,644
Medical Assurance, Inc.* .............. 880 29,095
Midland Co. ........................... 300 7,238
MMI Cos., Inc. ........................ 500 8,375
NAC Re Corp. .......................... 800 37,550
Nymagic, Inc. ......................... 300 6,225
Ocwen Asset Investment Corp. .......... 300 1,444
Penn Treaty American Corp.* ........... 300 8,081
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
PennCorp Financial Group, Inc. ........ 700 $ 700
Philadelphia Consolidated
Holdings Corp.* ..................... 300 6,788
PMA Capital Corp., Class A ............ 700 13,694
Poe & Brown, Inc. ..................... 400 13,975
Presidential Life Corp. ............... 1,200 23,850
PXRE Corp. ............................ 400 10,025
Reinsurance Group of America,
Inc. ................................ 800 56,000
Risk Capital Holdings, Inc.* .......... 400 8,700
RLI Corp. ............................. 225 7,481
SCPIE Holdings, Inc. .................. 500 15,156
Selective Insurance Group, Inc. ....... 1,400 28,175
Stewart Information Services
Corp. ............................... 400 23,200
TIG Holdings, Inc. .................... 2,100 32,681
Trenwick Group, Inc. .................. 400 13,050
UICI* ................................. 1,600 39,200
United Fire & Casualty Co. ............ 300 10,088
Vesta Insurance Group, Inc. ........... 400 2,400
W.R. Berkley Corp. .................... 500 17,031
-----------
1,121,059
-----------
INVESTMENT COMPANY (0.2%)
Phoenix Investment Partners Ltd. 1,800 15,188
SEI Corp. ............................. 500 49,687
-----------
64,875
-----------
MORTGAGE RELATED (0.0%)
Federal Agricultural Mortgage
Corp., Class C* ..................... 100 3,712
-----------
REAL ESTATE (7.4%)
Alexandria Real Estate Equities,
Inc. ................................ 600 18,562
American Health Properties, Inc. 1,000 20,625
AMLI Residential Properties
Trust ............................... 500 11,125
Avatar Holdings, Inc.* ................ 300 4,800
Bedford Property Investors, Inc. ...... 900 15,188
Berkshire Realty Co. .................. 1,300 12,350
Boykin Lodging Trust, Inc. ............ 300 3,713
Bradley Real Estate, Inc. ............. 1,000 20,500
Brandywine Realty Trust ............... 1,700 30,387
BRE Properties, Class A ............... 1,900 47,025
Burnham Pacific Properties, Inc. ...... 1,300 15,681
Cabot Industrial Trust ................ 600 12,263
Camden Property Trust ................. 1,900 49,400
Capstead Mortgage Corp. ............... 1,400 5,775
CB Richard Ellis Services, Inc.* ...... 700 12,688
CBL & Associates Properties,
Inc. ................................ 900 23,231
CCA Prison Realty Trust ............... 900 18,450
CenterPoint Properties Corp. .......... 400 13,525
Chateau Communications, Inc. .......... 800 23,450
Chelsea GCA Realty, Inc. .............. 600 21,375
Choice Hotels International,
Inc.* ............................... 1,500 20,531
Colonial Properties Trust ............. 1,300 34,612
Commercial Net Lease Realty ........... 1,000 13,250
Cornerstone Realty Income
Trust, Inc. ......................... 2,300 24,150
Cousins Properties, Inc. .............. 1,200 38,700
</TABLE>
90
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
CRIIMI MAE, Inc. ..................... 1,500 $ 5,250
D.R. Horton, Inc. .................... 1,200 27,600
Developers Diversified Realty
Corp. .............................. 2,100 37,275
Dynex Capital, Inc. .................. 1,500 6,938
EastGroup Properties, Inc. ........... 400 7,375
Equity Inns, Inc. .................... 1,500 14,438
Essex Property Trust, Inc. ........... 800 23,800
Federal Realty Investment Trust ...... 1,500 35,437
FelCor Lodging Trust, Inc. ........... 2,511 57,910
First Industrial Realty Trust, Inc. 1,700 45,581
First Union Real Estate
Investments ........................ 500 2,938
Forest City Enterprises, Inc.,
Class A ............................ 500 13,125
Franchise Finance Corp. of
America ............................ 1,300 31,200
Gables Residential Trust ............. 1,500 34,781
General Growth Properties ............ 1,300 49,237
Glenborough Realty Trust, Inc. ....... 1,600 32,600
Glimcher Realty Trust ................ 800 12,550
Great Lakes REIT, Inc. ............... 200 3,138
Grubb & Ellis Co.* ................... 600 4,838
Health Care Property Investors,
Inc. ............................... 900 27,675
Health Care REIT, Inc. ............... 900 23,287
Healthcare Realty Trust, Inc. ........ 1,996 44,536
Home Properties of New York,
Inc. ............................... 1,000 25,750
Hospitality Properties Trust ......... 900 21,712
Innkeepers USA Trust ................. 1,100 12,994
Insignia Financial Group, Inc.,
Class A* ........................... 533 6,463
IRT Property Co. ..................... 600 6,000
Irvine Apartment Communities,
Inc. ............................... 700 22,312
JDN Realty Corp. ..................... 1,250 26,953
JP Realty, Inc. ...................... 300 5,888
Kilroy Realty Corp. .................. 1,400 32,200
Kimco Realty Corp., Series D ......... 144 3,726
Koger Equity Inc. .................... 900 15,469
LaSalle Partners, Inc.* .............. 400 11,775
LNR Property Corp. ................... 800 15,950
LTC Properties, Inc. ................. 900 14,963
Manufactured Home
Communities, Inc. .................. 900 22,556
Meridian Industrial Trust, Inc. ...... 1,200 28,200
MeriStar Hospitality Corp. ........... 1,578 29,292
Merry Land Properties, Inc.* ......... 55 199
MGI Properties, Inc. ................. 1,000 27,937
Mid America Apartment
Communities, Inc. .................. 800 18,150
National Health Investors, Inc. ...... 900 22,219
Nationwide Health Properties,
Inc. ............................... 1,600 34,500
New Plan Excel Realty Trust .......... 2,980 66,119
NVR, Inc.* ........................... 300 14,306
OMEGA Healthcare Investors ........... 700 21,131
Pacific Gulf Properties, Inc. ........ 700 14,044
Parkway Properties, Inc. ............. 600 18,750
Prentiss Properties Trust ............ 1,500 33,469
Price Enterprises, Inc. .............. 1,036 5,504
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Prime Group Realty Trust ............. 300 $ 4,538
Prime Retail, Inc. ................... 1,500 14,719
PS Business Parks, Inc., Class A ..... 700 16,712
Realty Income Corp. .................. 1,400 34,825
Reckson Associates Realty ............ 2,000 44,375
Redwood Trust, Inc. .................. 800 11,200
Regency Realty Corp. ................. 1,100 24,475
RFS Hotel Investors, Inc. ............ 1,600 19,600
Ryland Group, Inc. ................... 800 23,100
Security Capital Group, Inc.,
Class B* ........................... 1,200 16,275
Shurgard Storage Centers,
Class A ............................ 600 15,488
SL Green Realty Corp. ................ 700 15,138
Smith (Charles E.) Residential
Realty ............................. 900 28,912
Sovran Self Storage, Inc. ............ 200 5,025
Storage Trust Realty ................. 700 16,363
Storage USA, Inc. .................... 1,000 32,312
Summit Properties, Inc. .............. 800 13,800
Sun Communities, Inc. ................ 900 31,331
Sunstone Hotel Investors ............. 1,500 14,156
Taubman Center, Inc. ................. 2,300 31,625
The Macerich Co. ..................... 600 15,375
Thornberg Mortgage Asset Corp. 500 3,813
Tower Realty Trust, Inc. ............. 600 12,075
Town & Country Trust ................. 800 12,850
Trammell Crow Co.* ................... 1,200 33,600
TriNet Corp. Realty Trust ............ 1,100 29,425
U.S. Restaurant Properties, Inc. ..... 500 12,156
United Dominion Realty Trust,
Inc. ............................... 3,700 38,156
Urban Shopping Centers, Inc. ......... 600 19,650
Ventas, Inc. ......................... 1,800 21,937
Walden Residential Properties,
Inc. ............................... 600 12,263
Washington Real Estate
Investment Trust ................... 1,900 35,387
Weeks Corp. .......................... 700 19,731
Weingarten Realty Investors .......... 1,100 49,087
Wellsford Real Properties, Inc.* ..... 1,200 12,375
Westfield America, Inc. .............. 1,200 20,700
-----------
2,393,945
-----------
UTILITY--ELECTRIC (2.1%)
Black Hills Corp. .................... 1,150 30,331
Calpine Corp.* ....................... 800 20,200
Central Hudson Gas & Electric ........ 600 26,850
CILCORP, Inc. ........................ 600 36,712
Cleco Corp. .......................... 1,100 37,744
CMP Group, Inc. ...................... 600 11,325
Commonwealth Energy System ........... 1,000 40,500
Eastern Utilities Associates ......... 1,000 28,250
El Paso Electric Co.* ................ 2,000 17,500
Empire District Electric Co. ......... 700 17,325
Hawaiian Electronics Industries,
Inc. ............................... 1,000 40,250
Idacorp, Inc. ........................ 1,600 57,900
Minnesota Power. Inc. ................ 1,000 44,000
Northwestern Corp. ................... 600 15,863
Orange & Rockland Utilities,
Inc. ............................... 500 28,500
</TABLE>
91
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Otter Tail Power Co. ..................................................... 400 $ 15,950
Rochester Gas & Electric ................................................. 1,400 43,750
Sierra Pacific Resources ................................................. 1,400 53,200
SIGCORP, Inc. ............................................................ 500 17,844
UniSource Energy Corp.* .................................................. 1,600 21,600
United Illuminating Co. .................................................. 500 25,750
United Water Resources, Inc. ............................................. 1,500 35,906
WPS Resources Corp. ...................................................... 800 28,200
-----------
695,450
-----------
UTILITY--GAS (1.9%)
AGL Resources, Inc. ...................................................... 2,700 62,269
Atmos Energy Corp. ....................................................... 1,200 38,700
Bay State Gas Co. ........................................................ 800 31,850
Colonial Gas Co. ......................................................... 600 20,925
Connecticut Energy Corp. ................................................. 200 6,100
Energen Corp. ............................................................ 1,000 19,500
Indiana Energy, Inc. ..................................................... 733 18,050
Kelley Oil & Gas Corp.* .................................................. 1,600 950
Laclede Gas Co. .......................................................... 800 21,400
Madison Gas & Electric Co. ............................................... 700 15,925
New Jersey Resources Corp. ............................................... 600 23,700
North Carolina Natural Gas
Corp. .................................................................. 300 9,956
Northwest Natural Gas Co. ................................................ 500 12,938
NUI Corp. ................................................................ 700 18,769
Peoples Energy Corp. ..................................................... 1,200 47,850
Piedmont Natural Gas Co. ................................................. 1,500 54,187
Public Service Co. of North
Carolina, Inc. ......................................................... 800 20,800
SEMCO Energy, Inc. ....................................................... 420 6,851
Southern Union Co.* ...................................................... 987 24,058
Southwest Gas Corp. ...................................................... 1,500 40,313
UGI Corp. ................................................................ 1,600 38,000
Washington Gas Light Co. ................................................. 1,200 32,550
Washington Water Power Co. ............................................... 2,500 48,125
-----------
613,766
-----------
UTILITY--TELEPHONE (0.4%)
Aliant Communications, Inc. .............................................. 1,500 61,312
e.spire Communications, Inc.* ............................................ 1,200 7,650
Western Wireless Corp., Class A* 2,900 63,800
-----------
132,762
-----------
TOTAL CREDIT SENSITIVE ................................................. 8,499,729
-----------
DIVERSIFIED (1.1%)
MISCELLANEOUS (1.1%)
AMCOL International Corp. ................................................ 800 7,900
AptarGroup, Inc. ......................................................... 900 25,256
Blount International, Inc.,
Class A ................................................................ 500 12,469
Brush Wellman, Inc. ...................................................... 500 8,719
Central Parking Corp. .................................................... 600 19,462
DBT Online, Inc.* ........................................................ 200 4,988
Dexter Corp. ............................................................. 700 22,006
Federal Signal Corp. ..................................................... 1,900 52,012
Foamex International, Inc. ............................................... 300 3,713
Furon Co. ................................................................ 1,000 17,063
Jostens, Inc. ............................................................ 1,300 34,044
Justin Industries, Inc. .................................................. 400 5,250
Mark IV Industries, Inc. ................................................. 1,400 18,200
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Matthews International Corp.,
Class A ................................................................ 600 $ 18,900
Myers Industries, Inc. ................................................... 600 17,212
National Golf Properties, Inc. ........................................... 700 20,256
SPS Technologies, Inc.* .................................................. 500 28,312
Standex International Corp. .............................................. 400 10,500
Tredegar Industries, Inc. ................................................ 700 15,750
Triarc Cos.* ............................................................. 500 8,000
-----------
TOTAL DIVERSIFIED ...................................................... 350,012
-----------
ENERGY (2.5%)
COAL & GAS PIPELINES (0.4%)
Aquila Gas Pipeline Corp. ................................................ 700 5,994
Arch Coal, Inc. .......................................................... 1,000 17,125
Eastern Enterprises ...................................................... 700 30,625
Equitable Resources, Inc. ................................................ 1,300 37,862
Nuevo Energy Co.* ........................................................ 700 8,050
TransMontaigne Oil Co.* .................................................. 800 12,100
Western Gas Resources, Inc. .............................................. 1,300 7,475
Yankee Energy System, Inc. ............................................... 700 20,388
-----------
139,619
-----------
OIL--DOMESTIC (0.6%)
Atwood Oceanics, Inc.* ................................................... 500 8,500
Barrett Resources Corp.* ................................................. 1,100 26,400
Berry Petroleum, Class A ................................................. 800 11,350
Cabot Oil & Gas Corp., Class A 600 9,000
Chesapeake Energy Corp. .................................................. 990 866
Cross Timbers Oil Co. .................................................... 1,300 9,750
EEX Corp.* ............................................................... 1,466 10,262
Frontier Oil Corp.* ...................................................... 1,100 5,431
Houston Exploration Co.* ................................................. 400 7,950
KCS Energy, Inc. ......................................................... 400 1,225
Key Energy Services, Inc.* ............................................... 400 1,875
Louis Dreyfus Natural Gas
Corp.* ................................................................. 600 8,550
Meridian Resource Corp.* ................................................. 1,800 5,738
Plains Resources, Inc.* .................................................. 500 7,031
Pogo Producing Co. ....................................................... 1,400 18,200
Range Resources Corp. .................................................... 2,700 9,281
Seagull Energy Corp.* .................................................... 3,200 20,200
St. Mary Land and Exploration
Co. .................................................................... 200 3,700
Stone Energy Corp.* ...................................................... 500 14,375
Tom Brown, Inc. .......................................................... 1,300 13,041
TransTexas Gas Corp.* .................................................... 700 1,838
Vintage Petroleum, Inc. .................................................. 1,200 10,350
-----------
204,913
-----------
OIL--INTERNATIONAL (0.3%)
Benton Oil & Gas Co.* .................................................... 700 2,100
Newfield Exploration Co.* ................................................ 1,600 33,400
Pride International, Inc.* ............................................... 1,800 12,713
Rutherford-Moran Oil Corp.* .............................................. 500 1,406
Santa Fe Energy Resources, Inc.* 3,600 26,550
Seacor Holdings, Inc.* ................................................... 600 29,662
-----------
105,831
-----------
OIL--SUPPLIES & CONSTRUCTION (1.1%)
Belco Oil & Gas Corp.* ................................................... 1,100 6,119
CARBO Ceramics, Inc. ..................................................... 300 5,250
Comstock Resources, Inc.* ................................................ 1,400 4,288
</TABLE>
92
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Daniel Industries, Inc. .............. 800 $ 9,700
Devon Energy Corp. ................... 1,100 33,756
Dril-Quip, Inc.* ..................... 500 8,875
Forecenergy, Inc.* ................... 200 525
Forest Oil Corp.* .................... 1,300 11,050
Friede Goldman International,
Inc.* .............................. 800 9,100
Grey Wolf, Inc.* ..................... 3,500 2,844
Gulf Island Fabrication, Inc.* ....... 600 4,650
Hanover Compressor Co.* .............. 1,000 25,687
Harken Energy Corp.* ................. 5,700 11,044
Helmerich & Payne, Inc. .............. 1,500 29,062
Holly Corp. .......................... 200 3,375
HS Resources, Inc.* .................. 200 1,513
Input/Output, Inc.* .................. 1,000 7,312
Marine Drilling Co., Inc.* ........... 1,900 14,606
Mitchell Energy & Development
Corp., Class A ..................... 600 6,862
Newpark Resources, Inc.* ............. 2,100 14,306
Oceaneering International, Inc.* ..... 800 12,000
Offshore Logistics, Inc.* ............ 700 8,312
Omni Energy Services Corp.* .......... 400 1,700
Parker Drilling Co.* ................. 1,800 5,738
Patterson Energy, Inc.* .............. 1,000 4,063
Pool Energy Services Co.* ............ 900 9,731
Snyder Oil Corp. ..................... 1,100 14,644
Swift Energy Co.* .................... 1,200 8,850
Syntroleum Corp.* .................... 1,100 6,806
Tesoro Petroleum Corp.* .............. 1,000 12,125
Trico Marine Services, Inc.* ......... 300 1,463
Tuboscope, Inc.* ..................... 2,200 17,875
WICOR, Inc. .......................... 1,300 28,356
-----------
341,587
-----------
RAILROADS (0.1%)
MotivePower Industries, Inc.* ........ 600 19,313
-----------
TOTAL ENERGY ....................... 811,263
-----------
TECHNOLOGY (16.4%)
ELECTRONICS (5.0%)
Aavid Thermal Technologies,
Inc.* .............................. 200 3,375
Acclaim Entertainment, Inc.* ......... 1,700 20,825
Actel Corp.* ......................... 400 8,000
ACX Technologies, Inc.* .............. 700 9,275
Acxiom Corp.* ........................ 2,140 66,340
Advent Software, Inc.* ............... 100 4,713
AFC Cable Systems, Inc.* ............. 100 3,363
American Management Systems,
Inc.* .............................. 1,400 56,000
Amkor Technology, Inc.* .............. 1,600 17,300
Amphenol Corp., Class A* ............. 500 15,094
ATMI, Inc.* .......................... 200 5,050
Analogic Corp. ....................... 200 7,525
Anixter International, Inc.* ......... 1,000 20,312
Apex PC Solutions, Inc.* ............. 200 5,775
Applied Micro Circuits Corp.* ........ 900 30,572
Artesyn Technologies, Inc.* .......... 1,400 19,600
Aspec Technology, Inc.* .............. 1,300 1,706
Aspen Technologies, Inc.* ............ 600 8,700
Avant! Corp.* ........................ 800 12,800
Avid Technology, Inc.* ............... 1,000 23,375
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
BancTec, Inc.* ....................... 1,200 $ 15,075
BARRA, Inc.* ......................... 600 14,175
BEA Systems, Inc.* ................... 1,700 20,825
Belden, Inc. ......................... 1,100 23,306
Boole & Babbage, Inc.* ............... 950 27,966
Budget Group, Inc.* .................. 1,100 17,462
Burr-Brown Corp.* .................... 950 22,266
C & D Technology, Inc. ............... 400 11,000
C-Cube Microsystems, Inc.* ........... 1,200 32,550
Cable Design Technologies* ........... 1,200 22,200
CDW Computer Centers, Inc.* .......... 300 28,781
Checkfree Holdings Corp.* ............ 1,600 37,400
Checkpoint Systems Inc.* ............. 1,200 14,850
CHS Electronics, Inc.* ............... 1,300 22,019
Cirrus Logic, Inc.* .................. 2,200 21,587
Clarify, Inc.* ....................... 800 19,550
Cohu, Inc. ........................... 200 4,400
CompuCom Systems, Inc.* .............. 900 3,150
Computer Horizons Corp.* ............. 1,000 26,625
Computer Task Group, Inc. ............ 600 16,275
CTS Corp. ............................ 600 26,100
Cubic Corp ........................... 100 1,875
Data General Corp.* .................. 1,700 27,944
Data Transmission Network
Corp.* ............................. 600 17,325
DII Group, Inc.* ..................... 800 18,400
Documentum, Inc.* .................... 400 21,375
Electro Scientific Industries, Inc.* 500 22,656
Essex International, Inc.* ........... 122 4,224
Etec Systems, Inc.* .................. 800 32,000
FactSet Research Systems, Inc.* ...... 100 6,175
FSI International, Inc.* ............. 1,300 13,487
General Cable Corp. .................. 1,650 33,825
GenRad, Inc.* ........................ 1,100 17,325
Gentex Corp.* ........................ 2,900 58,000
Gerber Scientific, Inc. .............. 900 21,431
Hadco Corp.* ......................... 500 17,500
Harbinger Corp.* ..................... 1,400 11,200
Helix Technology Corp. ............... 1,000 13,000
HNC Software, Inc.* .................. 500 20,219
Industri-Matematik International
Corp.* ............................. 600 3,000
Information Resources, Inc.* ......... 1,000 10,187
Innovex, Inc. ........................ 300 4,116
Inprise Corp.* ....................... 2,200 12,100
Integrated Device Technology,
Inc.* .............................. 3,300 20,212
Integrated Systems, Inc.* ............ 600 8,962
Intergraph Corp.* .................... 2,300 13,225
International Rectifer Corp.* ........ 1,700 16,575
ISS Group, Inc.* ..................... 200 11,000
Itron, Inc.* ......................... 300 2,156
Jabil Circuit, Inc.* ................. 800 59,700
Jack Henry & Associates, Inc. ........ 600 29,850
JDA Software Group, Inc.* ............ 950 9,203
Kent Electronics Corp.* .............. 1,200 15,300
MTS Systems Corp. .................... 600 8,100
National Instruments Corp.* .......... 600 20,475
NeoMagic Corp.* ...................... 500 11,062
Nichols Research Corp.* .............. 400 8,350
Optical Cable Corp.* ................. 300 3,638
P-Com, Inc.* ......................... 1,100 4,383
</TABLE>
93
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Paxar Corp.* ....................... 1,300 $ 11,619
Protection One, Inc.* .............. 700 5,994
Read-Rite Corp.* ................... 1,900 28,084
Rogers Corp.* ...................... 100 2,988
S3, Inc.* .......................... 2,200 16,191
SCM Microsystems, Inc.* ............ 400 28,425
SpeedFam International, Inc.* ...... 300 5,138
System Software Associates, Inc.* 1,300 9,141
Technology Solutions Co.* .......... 1,450 15,542
Thermedics, Inc.* .................. 1,100 11,894
Transaction Systems Architects,
Inc.* ............................ 1,000 50,000
Trimble Navigation Ltd.* ........... 700 5,075
VeriSign, Inc.* .................... 100 5,912
Visual Networks, Inc.* ............. 900 33,750
Wyman-Gordon Co.* .................. 600 6,150
-----------
1,632,720
-----------
OFFICE EQUIPMENT (2.7%)
3Dfx Interactive, Inc.* ............ 500 6,313
Alydaar Software Corp.* ............ 500 4,125
American Business Products, Inc. 700 16,450
Aspect Development, Inc.* .......... 600 26,587
Bell & Howell Co.* ................. 500 18,906
Day Runner, Inc.* .................. 400 5,800
DecisionOne Holdings Corp.* ........ 600 2,850
Evans & Sutherland Computer
Corp.* ........................... 200 3,525
FileNET Corp.* ..................... 1,400 16,056
Global DirectMail Corp.* ........... 800 18,700
GT Interactive Software Corp.* ..... 600 3,000
HMT Technology Corp.* .............. 1,600 20,500
Hunt Corp. ......................... 1,000 10,625
Hutchinson Technology, Inc.* ....... 600 21,375
IMRglobal Corp.* ................... 600 17,662
Insight Enterprises, Inc.* ......... 600 30,525
John H. Harland Co. ................ 1,200 18,975
Knoll, Inc.* ....................... 600 17,775
Kronos, Inc.* ...................... 400 17,725
Mastech Corp.* ..................... 800 22,900
Micron Electronics, Inc.* .......... 1,200 20,775
MICROS Systems, Inc.* .............. 500 16,438
National Computer Systems, Inc. 800 29,600
Network Appliance, Inc.* ........... 2,200 99,000
New England Business Services,
Inc. ............................. 500 19,562
New Era of Networks, Inc.* ......... 600 26,400
Pinnacle Systems, Inc.* ............ 300 10,725
Rational Software Corp.* ........... 3,300 87,450
RealNetworks, Inc.* ................ 400 14,350
Sandisk Corp.* ..................... 900 12,713
SMART Modular Technologies* ........ 1,000 27,750
TAVA Technologies, Inc.* ........... 700 5,338
Technitrol, Inc. ................... 600 19,125
Telxon Corp. ....................... 600 8,325
Triumph Group, Inc.* ............... 500 16,000
Vanstar Corp.* ..................... 2,100 19,425
Vantive Corp.* ..................... 1,100 8,800
Viasoft, Inc.* ..................... 500 3,500
Visio Corp.* ....................... 1,000 36,562
WH Brady Co. ....................... 900 24,244
Wind River Systems* ................ 800 37,600
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Xircom, Inc.* ...................... 700 $ 23,800
Xylan Corp.* ....................... 1,500 26,344
-----------
894,200
-----------
OFFICE EQUIPMENT SERVICES (3.9%)
Advantage Learning Systems,
Inc.* ............................ 200 13,150
BA Merchant Services, Inc.,
Class A* ......................... 1,000 20,125
BroadVision, Inc.* ................. 600 19,200
ChoicePoint, Inc.* ................. 400 25,800
Complete Business Solutions,
Inc.* ............................ 500 16,938
Concentric Network Corp.* .......... 500 16,625
Datastream Systems, Inc.* .......... 400 4,600
DataWorks Corp.* ................... 800 8,350
Davox Corp.* ....................... 800 6,100
DoubleClick, Inc.* ................. 500 22,781
DST Systems, Inc.* ................. 496 28,303
EarthLink Network, Inc.* ........... 500 28,500
Engineering Animation, Inc.* ....... 200 10,800
Excite, Inc.* ...................... 900 37,856
Exodus Communications, Inc.* ....... 400 25,700
Fair Issac & Co., Inc. ............. 300 13,856
Florida East Coast Industries,
Inc. ............................. 400 14,075
General Magic, Inc.* ............... 1,100 5,534
Great Plains Software, Inc.* ....... 200 9,650
H.T.E., Inc.* ...................... 500 2,500
Hypercom Corp.* .................... 600 5,925
Hyperion Solutions Corp.* .......... 980 17,640
Infoseek Corp.* .................... 800 39,500
infoUSA, Inc., Class B* ............ 700 3,675
Komag, Inc.* ....................... 2,300 23,862
Legato Systems, Inc.* .............. 1,500 98,906
Lycos, Inc.* ....................... 1,600 88,900
Macromedia, Inc.* .................. 1,400 47,162
Manhattan Associates, Inc.* ........ 400 10,900
Manugistics Group, Inc.* ........... 600 7,500
MAPICS, Inc.* ...................... 500 8,250
Mercury Interactive Corp.* ......... 500 31,625
MicroAge, Inc.* .................... 500 7,688
Micromuse, Inc.* ................... 400 7,800
MindSpring Enterprises, Inc.* ...... 500 30,531
Mobius Management Systems,
Inc.* ............................ 400 5,950
MTI Technology Corp.* .............. 1,500 6,750
Network Solutions, Inc., Class A* 200 26,175
Objective Systems Integrators,
Inc.* ............................ 600 2,775
Peregrine Systems, Inc.* ........... 300 13,913
Platinum Software Corp.* ........... 600 7,688
Progress Software Corp.* ........... 650 21,938
Project Software &
Development, Inc.* ............... 300 10,050
PSINet, Inc.* ...................... 1,700 35,487
QAD, Inc.* ......................... 600 2,138
QRS Corp.* ......................... 200 9,600
QuadraMed, Corp.* .................. 800 16,400
Radiant Systems, Inc.* ............. 600 4,425
Remedy Corp.* ...................... 1,100 15,331
RWD Technologies, Inc.* ............ 300 6,488
</TABLE>
94
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Safeguard Scientifics, Inc.* ........ 1,000 $ 27,437
Sapient Corp.* ...................... 400 22,400
Security Dynamics Technologies,
Inc.* ............................. 1,600 36,800
Sequent Computer System* ............ 1,800 21,713
Shiva Corp.* ........................ 600 3,394
Software AG Systems, Inc.* .......... 1,200 21,750
SportsLine USA, Inc.* ............... 600 9,338
Structural Dynamics Research* ....... 1,600 31,800
Sykes Enterprises, Inc.* ............ 800 24,400
Symantec Corp.* ..................... 1,900 41,325
Syntel, Inc.* ....................... 400 4,525
Systems & Computer Tech
Corp.* ............................ 1,200 16,500
Wang Laboratories, Inc.* ............ 1,900 52,725
WavePhore, Inc.* .................... 1,100 8,834
-----------
1,268,356
-----------
TELECOMMUNICATIONS (4.8%)
Aerial Communications, Inc.* ........ 1,300 7,638
Allen Telecom, Inc.* ................ 500 3,344
Alliant Techsystems, Inc.* .......... 231 19,043
Alpine Group, Inc.* ................. 800 12,000
American Mobile Satellite Corp.* 1,300 6,825
American Tower Corp., Class A* 3,300 97,556
ANTEC Corp.* ........................ 1,100 22,137
Ascent Entertainment Group,
Inc.* ............................. 1,800 13,275
Aspect Telecommunications
Corp.* ............................ 2,200 37,950
Associated Group, Inc., Class A* 900 38,700
AXENT Technologies, Inc.* ........... 1,100 33,619
Black Box Corp.* .................... 800 30,300
California Microwave, Inc.* ......... 300 2,813
CellNet Data Systems, Inc.* ......... 1,900 9,500
Cellular Communications
International, Inc.* .............. 500 34,000
Cellular Communications of
Puerto Rico* ...................... 400 7,400
Centennial Cellular Corp.,
Class A* .......................... 700 28,700
CFW Communications Co. .............. 500 11,687
CMG Information Services, Inc.* 600 63,900
CNET, Inc.* ......................... 300 16,444
Com21, Inc.* ........................ 400 8,400
CommNet Cellular, Inc.* ............. 600 7,350
Commonwealth Telephone
Enterprises, Inc.* ................ 200 6,700
CoreComm Ltd.* ...................... 400 6,300
Cylink Corp.* ....................... 1,400 5,075
Dialogic Corp.* ..................... 500 9,828
Diamond Multimedia Systems,
Inc.* ............................. 1,800 11,475
Digi International, Inc.* ........... 600 6,675
Digital Microwave Corp.* ............ 1,600 10,950
DSP Communications, Inc* ............ 1,600 24,500
E*TRADE Group, Inc.* ................ 1,300 60,816
Electric Lightwave, Inc.,
Class A* .......................... 900 7,369
Excel Switching Corp.* .............. 300 11,400
General Communications, Inc.,
Class A* .......................... 2,800 11,375
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
GeoTel Communications Corp.* ........ 700 $ 26,075
Glenayre Technologies, Inc.* ........ 2,500 11,094
ICG Communications, Inc.* ........... 1,700 36,550
IDT Corp.* .......................... 700 10,762
Inter-Tel, Inc. ..................... 600 14,025
InterDigital Communications
Corp.* ............................ 2,500 11,406
International Network Services* ..... 700 46,550
ITC DeltaCom, Inc.* ................. 1,800 27,450
IXC Communications, Inc.* ........... 1,100 36,987
KEMET Corp.* ........................ 1,600 18,000
LCC International, Inc.* ............ 600 2,250
MasTec, Inc.* ....................... 600 12,600
Metro Information Services, Inc.* 200 6,000
Metrocall, Inc.* .................... 800 3,500
Metromedia Fiber Network, Inc.
Class A* .......................... 1,000 33,500
MGC Communications, Inc.* ........... 400 2,800
MRV Communications, Inc.* ........... 700 4,331
Natural MicroSystems Corp.* ......... 500 3,641
Network Equiptmant
Technologies, Inc.* ............... 700 7,219
Norstan, Inc.* ...................... 500 8,875
North Pittsburgh Systems, Inc. ...... 500 6,688
NTL, Inc.* .......................... 1,600 90,300
Oak Industries, Inc.* ............... 700 24,500
Omnipoint Corp.* .................... 1,500 13,969
Open Market, Inc.* .................. 600 7,013
Pacific Gateway Exchange, Inc.* ..... 200 9,612
PageMart Wireless, Inc.,
Class A* .......................... 1,200 6,675
PictureTel Corp.* ................... 1,600 10,600
Plantronics, Inc.* .................. 600 51,600
Polycom, Inc.* ...................... 400 8,900
Powertel, Inc.* ..................... 500 6,781
Premiere Technologies, Inc.* ........ 1,700 12,537
Premisys Communications, Inc.* ...... 700 6,431
Primus Telecommunications
Group, Inc.* ...................... 900 14,850
RCN Corp.* .......................... 1,300 22,994
Skytel Communications, Inc.* ........ 2,200 48,675
SmarTalk TeleServices, Inc.* ........ 1,100 2,922
Superior TeleCom, Inc. .............. 225 10,631
Tekelec* ............................ 1,500 24,844
Tel-Save Holdings, Inc.* ............ 1,500 25,125
Telegroup, Inc.* .................... 1,300 1,706
U.S. Satellite Broadcasting Co.,
Inc.* ............................. 1,700 23,375
Vanguard Cellular Systems, Inc.,
Class A* .......................... 900 23,231
Verio, Inc.* ........................ 200 4,475
West TeleServices Corp.* ............ 300 2,925
Westell Technologies, Inc.* ......... 1,100 5,363
WinStar Communications, Inc.* ....... 1,500 58,500
World Access, Inc.* ................. 1,100 23,512
-----------
1,557,393
-----------
TOTAL TECHNOLOGY .................. 5,352,669
-----------
TOTAL COMMON STOCK (96.5%)
(Cost $32,212,915) ................ 31,467,563
-----------
</TABLE>
95
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- --------------
<S> <C> <C>
PREFERRED STOCKS:
CONSUMER NON-CYCLICALS (0.0%)
HOSPITAL SUPPLIES & SERVICES (0.0%)
Mediq, Inc., Class A, 13.00%* ......... 22 $ 88
-----------
CREDIT SENSITIVE (0.1%)
REAL ESTATE (0.1%)
Apartment Investment &
Management Co., Series E,
Variable rate ....................... 209 7,733
Price Enterprises, Inc. ............... 400 5,525
-----------
13,258
-----------
TOTAL PREFERRED STOCK (0.1%)
(Cost $15,885).................... 13,346
-----------
RIGHTS:
CREDIT SENSITIVE (0.0%)
FINANCIAL SERVICES (0.0%)
Coast Federal Litigation
Contingent Payment Rights*
(Cost $0)............................ 300 1,988
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENTS (8.1%)
U.S. Treasury Bills
1/21/99 .......................... $873,000 871,195
2/4/99- .......................... 100,000 99,587
3/11/99 .......................... 835,000 828,418
3/18/99 .......................... 500,000 495,620
4/1/99 ........................... 355,000 351,072
-------
TOTAL SHORT TERM DEBT SECURITIES (8.1%)
(Cost/Amortized Cost
$2,644,955) ...................... 2,645,892
---------
TOTAL INVESTMENTS (104.7%)
(Cost/Amortized Cost
$34,873,755) ..................... 34,128,789
OTHER ASSETS
LESS LIABILITIES (--4.7%) ......... (1,520,101)
----------
NET ASSETS (100%) .................. $ 32,608,688
============
</TABLE>
- ----------
* Non-Income producing
- - All, or a portion of securities held by broker as collateral for financial
futures contracts.
96
<PAGE>
EQ ADVISORS TRUST
BT SMALL COMPANY INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
FUTURES CONTRACTS: At December 31, 1998, the Portfolio had futures contracts
open: (Note 1)
<TABLE>
<CAPTION>
NUMBER
OF AGGREGATE EXPIRATION UNREALIZED
PURCHASES: CONTRACTS FACE VALUE DATE APPRECIATION
- --------------- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
S&P 500 Index 3 $934,125 Mar '99 $4,440
======
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $38,177,022
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 6,033,011
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal Income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 3,220,268
Aggregate gross unrealized depreciation ......... (4,126,964)
------------
Net unrealized depreciation ..................... $ (906,696)
============
Federal income tax cost of investments .......... $ 35,035,485
============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$4,000,226 which was secured by collateral of $4,095,271.
See Notes to Financial Statements.
97
<PAGE>
EQ ADVISORS TRUST
JPM CORE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------ -----------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BUSINESS SERVICES (0.4%)
ENVIRONMENTAL CONTROL (0.4%)
Lamso USA, Inc.
7.50%, 6/30/06 ................... $ 380,000 $ 389,362
------------
CAPITAL GOODS (2.3%)
AEROSPACE (2.3%)
Boeing Co.
6.625%, 2/15/38 .................. 625,000 627,819
7.50%, 8/15/42 ................... 1,445,000 1,620,698
Lockheed Martin Corp.
7.25%, 5/15/06 ................... 100,000 108,632
------------
TOTAL CAPITAL GOODS .............. 2,357,149
------------
CONSUMER CYCLICALS (2.3%)
LEISURE RELATED (1.2%)
Time Warner Entertainment
8.375%, 3/15/23 .................. 1,000,000 1,226,634
------------
RETAIL--GENERAL (1.1%)
Federated Dept. Stores
8.50%, 6/15/03 ................... 1,000,000 1,105,255
------------
TOTAL CONSUMER CYCLICALS ......... 2,331,889
------------
CONSUMER NON-CYCLICALS (1.5%)
BEVERAGES (1.2%)
J Seagram & Sons
7.60%, 12/15/28 .................. 1,250,000 1,261,914
------------
HOSPITAL SUPPLIES & SERVICES (0.3%)
McKesson Corp.
6.30%, 3/1/05 .................... 300,000 305,228
------------
TOBACCO (0.0%)
Philip Morris Cos., Inc.
6.15%, 3/15/00 ................... 30,000 30,301
------------
TOTAL CONSUMER NON-CYCLICALS 1,597,443
------------
CREDIT SENSITIVE (82.6%)
BANKS (2.6%)
Amsouth Bank of Alabama
6.45%, 2/1/18 .................... 1,000,000 1,040,998
First Union Corp.
8.125%, 6/24/02 .................. 750,000 812,962
Inter-American Development
Bank
6.75%, 7/15/27 ................... 750,000 834,000
------------
2,687,960
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS (10.8%)
Advanta Mortgage Loan Trust,
Series 98-2, Class A17,
6.05%, 9/25/18 ................... 1,000,000 1,005,000
Chase Manhattan Auto Owner
Trust, Series 97-B, Class A4,
6.50%, 10/15/01 .................. 3,050,000 3,108,606
Countrywide Home Loans,
Series 98-23, Class A,
6.50%, 2/25/29 ................... 3,300,000 3,300,115
Morgan Stanley Capital, Inc.,
Series 98-HF1,
6.19%, 1/15/07 ................... 94,960 98,550
Series 98-HF2, Class A2,
6.48%, 11/15/30 .................. 1,000,000 1,026,875
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------ -----------------
<S> <C> <C>
Series 98-WF1,
6.25% 7/15/07 .................. $ 58,004 $ 58,221
Nationslink Funding Corp.,
Series 98-2, Class A2,
6.476%, 7/20/08 ................ 2,200,000 2,287,527
Ocwen Residential MBS Corp.
Series 98-R1,
4.00%, 10/25/40+ ............... 235,492 235,750
------------
11,120,644
------------
FINANCIAL SERVICES (9.3%)
Associates Corp. of North
America
5.875%, 7/15/02 ................ 400,000 404,736
6.00%, 4/15/03 ................. 200,000 203,330
6.95%, 11/1/18 ................. 600,000 638,645
Banc One Corp.
7.625%, 10/15/26 ............... 1,000,000 1,149,934
Beneficial Corp., Series G,
6.85%, 6/17/02 ................. 500,000 517,465
ERP Operating LP
6.63%, 4/13/05 ................. 500,000 493,380
First USA Credit Card Master
Trust, Series 98-2, Class C,
6.80%, 2/18/11+ ................ 300,000 304,200
Ford Motor Credit
6.625%, 6/30/03 ................ 150,000 156,168
General Electric Capital Corp.
5.50%, 11/1/01 ................. 100,000 99,444
Household Finance Co., Series E,
6.125%, 2/27/03 ................ 250,000 250,021
Household Finance N.V.
6.125%, 3/1/03 ................. 250,000 251,324
John Deere Capital Corp.
5.85%, 1/15/01 ................. 100,000 100,293
Keystone Financial Midatlantic
6.50%, 5/31/08 ................. 200,000 205,688
Norwest Financial, Inc.
7.20%, 4/1/04 .................. 700,000 748,192
Premier Auto Trust, Series 97-2,
Class A5,
6.32%, 3/6/02 .................. 3,000,000 3,061,875
Toyota Motor Credit
5.625%, 11/13/03 ............... 1,000,000 1,010,130
------------
9,594,825
------------
FOREIGN GOVERNMENT (0.5%)
Quebec Province, Series NY,
6.50%, 1/17/06 ................. 500,000 523,670
------------
MORTGAGE RELATED (3.6%)
Deutsche Mortgage and Asset
Receiving Corp.
6.22%, 9/15/07 ................. 96,017 97,664
First Union-Lehman Brothers,
Series 98-C2, Class A1,
6.28%, 6/18/07 ................. 485,712 497,240
Series 98-C2 Class A2,
6.56%, 11/18/08 ................ 3,000,000 3,106,545
------------
3,701,449
------------
REAL ESTATE (0.0%)
Weeks Realty LP
6.875%, 3/15/05 ................ 37,000 35,225
------------
</TABLE>
98
<PAGE>
EQ ADVISORS TRUST
JPM CORE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------------- ------------------
<S> <C> <C>
U.S. GOVERNMENT (18.8%)
U.S. Treasury Note
6.25%, 2/28/02 ............... $ 850,000 $ 888,516
5.25%, 8/15/03 ............... 5,085,000 5,213,717
5.75%, 8/15/03 ............... 235,000 245,355
4.25%, 11/15/03 .............. 3,000,000 2,961,564
6.875%, 5/15/06 .............. 3,725,000 4,211,578
5.625%, 5/15/08 .............. 400,000 426,875
4.75%, 11/15/08 .............. 840,000 846,825
6.75%, 8/15/26- .............. 2,140,000 2,565,325
6.125%, 11/15/27 ............. 1,500,000 1,680,470
5.25%, 11/15/28 .............. 380,000 389,619
----------
19,429,844
----------
MORTGAGE BACKED SECURITIES (32.1%)
Federal Home Loan Mortgage
Corporation Gold
7.00%, 5/1/28 ................ 2,299,928 2,345,926
Federal National Mortgage
Association
6.50%, 4/1/11 ................ 497,671 504,981
6.50%, 2/1/13 ................ 276,753 280,818
6.50%, 4/1/13 ................ 73,707 74,790
6.50%, 5/1/13 ................ 646,678 656,177
6.50%, 6/1/13 ................ 423,778 430,003
6.50%, 11/1/13 ............... 452,855 459,507
6.50%, 3/1/28 ................ 260,249 262,038
6.50%, 4/1/28 ................ 530,842 534,491
6.50%, 7/1/28 ................ 614,088 618,309
7.00%, 7/1/28 ................ 1,464,999 1,495,214
6.50%, 8/1/28 ................ 185,407 186,681
7.00%, 8/1/28 ................ 996,579 1,017,134
6.50%, 9/1/28 ................ 2,417,841 2,434,312
6.50%, 10/1/28 ............... 1,410,417 1,420,113
6.00%, 12/1/28 ............... 4,202,550 4,148,707
6.50%, 12/1/28 ............... 765,838 771,103
6.00%, 1/1/29 TBA ............ 4,320,000 4,263,278
6.50%, 1/1/29 TBA ............ 120,000 120,787
Government National Mortgage
Association
8.00%, 8/15/27 ............... 375,701 390,729
7.00%, 1/1/28 TBA ............ 2,140,000 2,178,777
7.50%, 2/15/28 ............... 34,987 36,113
7.00%, 4/15/28 ............... 961,690 984,828
7.00%, 5/15/28 ............... 493,656 505,534
7.50%, 5/15/28 ............... 477,692 493,069
7.00%, 6/15/28 ............... 1,753,074 1,795,254
7.00%, 7/15/28 ............... 3,239,971 3,317,925
7.50%, 7/15/28 ............... 905,726 934,881
6.50%, 8/15/28 ............... 492,902 495,056
----------
33,156,535
----------
UTILITY--ELECTRIC (2.0%)
Detroit Edison, Series E
6.75%, 3/17/03 ............... 100,000 104,592
Kincaid Generation LLC
7.33%, 6/15/20+ .............. 300,000 299,573
National Rural Utilities
6.20%, 2/1/08 ................ 100,000 105,438
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------------- ------------------
<S> <C> <C>
Texas Utilities Electric Co.
6.25%, 10/1/04 ................. $ 200,000 $ 208,471
5.94%, 10/15/11 ................ 1,000,000 998,631
United Utilities plc
6.25%, 8/15/05 ................. 300,000 302,766
----------
2,019,471
----------
UTILITY--GAS (1.9%)
Atmos Energy
6.75%, 7/15/28 ................. 350,000 361,807
Energen Corp.
7.125%, 2/15/28 ................ 1,000,000 981,679
Ferellgas LP, Series A,
6.99%, 8/1/05 (SS.) ............ 500,000 495,000
Lakehead Pipe Line Co. LP
7.125%, 10/1/28 ................ 150,000 151,227
----------
1,989,713
----------
UTILITY--TELEPHONE (1.0%)
Century Telephone Enterprises,
Series E,
6.15%, 1/15/05 ................. 100,000 101,495
Pacific Bell
6.125%, 2/15/08 ................ 250,000 262,668
Pacific Telecommunications,
Series B,
6.625%, 10/20/05 ............... 150,000 154,492
U.S. West Capital Funding, Inc.
6.25%, 7/15/05 ................. 125,000 129,284
6.875%, 7/15/28 ................ 400,000 428,642
----------
1,076,581
----------
TOTAL CREDIT SENSITIVE ......... 85,335,917
----------
ENERGY (2.4%)
COAL & GAS PIPELINES (0.1%)
Laidlaw, Inc.
6.50%, 5/1/05 .................. 100,000 98,266
----------
OIL--INTERNATIONAL (0.2%)
Peco Energy Capital Trust III,
Series D,
7.38%, 4/6/28 .................. 150,000 151,417
Tailsman Energy, Inc.
7.25%, 10/15/27 ................ 100,000 96,450
----------
247,867
----------
OIL--SUPPLIES & CONSTRUCTION (1.2%)
Canadian Occidental Petroleum
7.40%, 5/1/28 .................. 400,000 368,121
Occidental Petroleum
9.25%, 8/1/19 .................. 575,000 660,192
Union Texas Petroleum
7.00%, 4/15/08 ................. 250,000 272,944
----------
1,301,257
----------
RAILROADS (0.9%)
Burlington Northern Santa Fe,
Series 96-B,
6.96%, 3/22/09 ................. 456,477 480,605
Canadian National Railway Co.
6.45%, 7/15/06 ................. 400,000 411,332
----------
891,937
----------
TOTAL ENERGY ................... 2,539,327
----------
</TABLE>
99
<PAGE>
EQ ADVISORS TRUST
JPM CORE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------------- -------------
<S> <C> <C>
TECHNOLOGY (3.9%)
ELECTRONICS (0.9%)
Computer Associates
International, Series B,
6.375%, 4/15/05 ........... $ 900,000 $ 890,676
----------
TELECOMMUNICATIONS (3.0%)
Aerial Communications, Inc.,
Zero Coupon,
2/1/08+ ................... 435,000 200,761
Cable & Wireless
Communications
6.375%, 3/6/03 ............ 400,000 400,176
Cox Communications, Inc.
6.15%, 8/1/03 ............. 750,000 768,375
TCA Cable TV, Inc.
6.53%, 2/1/28 ............. 600,000 610,631
Tele-Communication, Inc.
7.875%, 8/1/13 ............ 1,000,000 1,170,248
----------
3,150,191
----------
TOTAL TECHNOLOGY .......... 4,040,867
----------
TOTAL LONG-TERM DEBT SECURITIES (95.4%)
(Cost $98,333,501)......... 98,591,954
----------
NUMBER
OF
SHARES
------------
PREFERRED STOCKS:
CREDIT SENSITIVE (0.4%)
FINANCIAL SERVICES (0.4%)
Equity Residential Properties
Trust
(Cost $397,850)............ 14,600 377,775
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (8.1%)
Enterprise Capital Funding
5.30%, 1/29/99+ ..................... $4,400,000 $ 4,381,862
Windmill Funding Corp.
5.43%, 1/21/99+ ..................... 4,000,000 3,987,933
------------
8,369,795
------------
U.S. GOVERNMENT AGENCIES (3.5%)
Federal Mortgage Corp.
(Discount Note)
4.50%, 1/4/99 ....................... 3,600,000 3,598,650
------------
TOTAL SHORT-TERM DEBT SECURITIES (11.6%)
(Amortized Cost $11,968,446)......... 11,968,445
------------
TOTAL INVESTMENTS (107.4%)
(Cost/Amortized Cost
$110,699,797)........................ 110,938,174
OTHER ASSETS
LESS LIABILITIES (-7.4%) ............ (7,611,934)
------------
NET ASSETS (100%) ..................... $103,326,240
============
</TABLE>
- ---------------------
+ Security exempt from registration under rule 144A of the Securities Act
of 1933, as amended. These securities may only be resold to qualified
institutional buyers. At December 31, 1998 these securities amounted to
$9,410,079 or 9.11% of net assets.
(SS.) Illiquid security: is not actively traded
- All, or a portion of securities held by broker as collateral for financial
futures contracts.
Glossary:
TBA -- Security is subject to delayed delivery.
100
<PAGE>
EQ ADVISORS TRUST
JPM CORE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998, the Portfolio had the following futures contracts open:
(Note 1)
<TABLE>
<CAPTION>
NUMBER
OF AGGREGATE EXPIRATION UNREALIZED
PURCHASES: CONTRACTS FACE VALUE DATE (DEPRECIATION)
- -------------------------- ----------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
U.S. 5 Year Note ......... 8 $ 906,750 March `99 $ (9,548)
U.S. Long Bond ........... 17 2,172,281 March `99 (11,790)
---------
$ (21,338)
=========
</TABLE>
At December 31, 1998 the Portfolio had outstanding foreign currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
French Franc, expiring 2/12/99 ......... 6,765 $1,226,071 $1,212,849 $ (13,222)
German Mark, expiring 2/12/99 .......... 2,231 1,355,312 1,341,539 (13,773)
FOREIGN CURRENCY SALE CONTRACTS
French Franc, expiring 2/12/99 ......... 6,765 1,243,972 1,212,849 31,123
German Mark, expiring 2/12/99 .......... 2,231 1,386,770 1,341,539 45,231
---------
$ 49,359
=========
</TABLE>
At December 31, 1998 the Portfolio had outstanding forward commitments as
follows: (Note 1)
<TABLE>
<CAPTION>
PROCEEDS ON UNREALIZED
FORWARD SALES PRINCIPAL ORIGINATION DATE CURRENT VALUE APPRECIATION
- ------------------------------ ------------- ------------------ --------------- -------------
<S> <C> <C> <C> <C>
FNMA TBA (Jan.) 6.50% 1/1/13 $2,320,000 $2,353,894 $2,335,219 $18,675
FNMA TBA (Jan.) 6.50% 1/1/28 2,140,000 2,156,719 2,154,039 2,680
-------
$21,355
=======
</TABLE>
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $ 63,251,786
U.S. Government securities ............................. 171,262,698
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 26,184,975
U.S. Government securities ............................. 118,242,949
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation ......... $ 665,029
Aggregate gross unrealized depreciation ......... (494,683)
------------
Net unrealized appreciation ..................... $ 170,346
============
Federal income tax cost of investments .......... $110,767,828
============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$1,366,471 which was secured by collateral of
$1,381,000.
See Notes to Financial Statements.
101
<PAGE>
EQ ADVISORS TRUST
LAZARD LARGE CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (1.6%)
CHEMICALS (0.8%)
E.I. Du Pont de Nemours & Co. 10,700 $ 567,769
-----------
PAPER (0.8%)
Kimberly Clark Corp. ................................................... 11,500 626,750
-----------
TOTAL BASIC MATERIALS ................................................ 1,194,519
-----------
BUSINESS SERVICES (3.0%)
PRINTING, PUBLISHING,
BROADCASTING (3.0%)
Gannett Co. ............................................................ 17,800 1,148,100
New York Times Co., Class A ............................................ 30,900 1,071,844
-----------
TOTAL BUSINESS SERVICES .............................................. 2,219,944
-----------
CAPITAL GOODS (8.4%)
AEROSPACE (3.6%)
Allied Signal, Inc. .................................................... 6,900 305,756
British Aerospace (ADR) * .............................................. 13,700 465,458
Gulfstream Aerospace Corp. * ........................................... 10,900 580,425
United Technologies Corp. .............................................. 12,500 1,359,375
-----------
2,711,014
-----------
ELECTRICAL EQUIPMENT (3.1%)
FPL Group, Inc. ........................................................ 14,000 862,750
Honeywell, Inc. ........................................................ 18,800 1,415,875
-----------
2,278,625
-----------
MACHINERY (1.7%)
Ingersoll-Rand Co. ..................................................... 26,300 1,234,456
-----------
TOTAL CAPITAL GOODS .................................................. 6,224,095
-----------
CONSUMER CYCLICALS (11.0%)
AUTO RELATED (1.7%)
Republic Industries, Inc. * ............................................ 31,700 467,575
TRW Inc. ............................................................... 14,900 837,194
-----------
1,304,769
-----------
AUTOS & TRUCKS (2.1%)
General Motors Corp. ................................................... 21,700 1,552,906
-----------
FOOD SERVICES, LODGING (1.2%)
ConAgra, Inc. .......................................................... 28,000 882,000
-----------
PHOTO & OPTICAL (1.2%)
Eastman Kodak Co. ...................................................... 12,300 885,600
-----------
RETAIL--GENERAL (4.8%)
Federated Department
Stores, Inc. * ....................................................... 18,400 801,550
Newell Co. ............................................................. 7,900 325,875
Office Depot, Inc. * ................................................... 27,200 1,004,700
Sears Roebuck & Co. .................................................... 12,300 522,750
TJX Cos., Inc. ......................................................... 10,500 304,500
Toys-R-Us, Inc. * ...................................................... 38,000 641,250
-----------
3,600,625
-----------
TOTAL CONSUMER CYCLICALS ............................................. 8,225,900
-----------
CONSUMER NON-CYCLICALS (20.9%)
BEVERAGES (4.5%)
Diago plc (ADR) ........................................................ 16,891 781,208
Heineken N.V. (ADR) .................................................... 19,112 1,150,791
PepsiCo, Inc. .......................................................... 34,800 1,424,625
-----------
3,356,624
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
-------------------- ------------------
<S> <C> <C>
DRUGS (9.0%)
American Home Products Corp. ........................................... 38,200 $ 2,151,138
Amgen, Inc.* ........................................................... 11,600 1,212,925
Bristol-Myers Squibb Co. ............................................... 14,750 1,973,734
Merck & Co., Inc. ...................................................... 9,200 1,358,725
-----------
6,696,522
-----------
HOSPITAL SUPPLIES & SERVICES (1.0%)
Johnson & Johnson ...................................................... 8,700 729,712
-----------
RETAIL--FOOD (1.3%)
McDonald's Corp. ....................................................... 12,800 980,800
-----------
SOAPS & TOILETRIES (1.9%)
Procter & Gamble Co. ................................................... 3,400 310,463
Unilever N.V. (NY Shares) .............................................. 13,200 1,094,775
-----------
1,405,238
-----------
TOBACCO (3.2%)
Philip Morris Cos., Inc. ............................................... 45,500 2,434,250
-----------
TOTAL CONSUMER NON-CYCLICALS 15,603,146
-----------
CREDIT SENSITIVE (28.6%)
BANKS (6.7%)
Chase Manhattan Corp. .................................................. 19,700 1,340,831
Bank One Corp. ......................................................... 19,300 985,506
BankAmerica Corp. ...................................................... 23,284 1,399,951
First Union Corp. ...................................................... 21,500 1,307,469
-----------
5,033,757
-----------
FINANCIAL SERVICES (5.9%)
American Express Co. ................................................... 5,500 562,375
Citigroup, Inc. ........................................................ 21,500 1,064,250
Fleet Financial Group, Inc. ............................................ 25,500 1,139,531
Mellon Bank Corp. ...................................................... 14,400 990,000
Morgan Stanley Dean
Witter & Co. ......................................................... 8,900 631,900
-----------
4,388,056
-----------
INSURANCE (5.8%)
Aetna, Inc. ............................................................ 15,400 1,210,825
Allstate Corp. ......................................................... 15,400 594,825
Hartford Financial Services
Group, Inc. .......................................................... 23,600 1,295,050
Washington Mutual, Inc. ................................................ 32,000 1,222,000
-----------
4,322,700
-----------
UTILITY--ELECTRIC (3.4%)
Consolidated Edison, Inc. .............................................. 15,900 840,713
Duke Energy Corp. ...................................................... 8,100 518,906
Pacificorp ............................................................. 38,000 800,375
Southern Co. ........................................................... 13,200 383,625
-----------
2,543,619
-----------
UTILITY--TELEPHONE (6.8%)
AT&T Corp. ............................................................. 31,900 2,400,475
Bell Atlantic Corp. .................................................... 49,800 2,639,400
-----------
5,039,875
-----------
TOTAL CREDIT SENSITIVE ............................................... 21,328,007
-----------
DIVERSIFIED (0.9%)
MISCELLANEOUS (0.9%)
Minnesota Mining &
Manufacturing Co. .................................................... 8,900 633,012
-----------
</TABLE>
102
<PAGE>
EQ ADVISORS TRUST
LAZARD LARGE CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
----------- --------------
<S> <C> <C>
ENERGY (5.6%)
OIL--DOMESTIC (4.0%)
Chevron Corp. .................... 4,400 $ 364,925
Exxon Corp. ...................... 16,300 1,191,938
Mobil Corp. ...................... 16,500 1,437,562
-----------
2,994,425
-----------
OIL--INTERNATIONAL (0.2%)
Noble Affiliates, Inc. ........... 6,700 164,987
-----------
OIL--SUPPLIES & CONSTRUCTION (0.5%)
Halliburton Co. .................. 12,700 376,238
-----------
RAILROADS (0.9%)
ABB AB (ADR) ..................... 59,000 649,000
-----------
TOTAL ENERGY ................... 4,184,650
-----------
TECHNOLOGY (16.6%)
ELECTRONICS (3.7%)
Intel Corp. ...................... 11,700 1,387,181
Texas Instruments, Inc. .......... 16,400 1,403,225
-----------
2,790,406
-----------
OFFICE EQUIPMENT (5.4%)
Circuit City Stores-Circuit
City Group ..................... 14,700 734,081
Hewlett Packard Co. .............. 23,100 1,578,019
International Business
Machines Corp. ................. 9,400 1,736,650
-----------
4,048,750
-----------
OFFICE EQUIPMENT SERVICES (2.5%)
First Data Corp. ................. 32,900 1,042,519
NCR Corp. * ...................... 19,500 814,125
-----------
1,856,644
-----------
TELECOMMUNICATIONS (5.0%)
Ameritech Corp. .................. 26,200 1,660,425
Motorola, Inc. ................... 11,300 690,006
SBC Communications, Inc. ......... 25,300 1,356,713
-----------
3,707,144
-----------
TOTAL TECHNOLOGY ............... 12,402,944
-----------
TOTAL COMMON STOCKS (96.6%)
(Cost $65,095,095) ............. 72,016,217
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- ---------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENTS (5.5%)
U.S. Treasury Bill
4/8/99
(Cost/Amortized Cost
$4,140,651)........................ $4,190,000 $ 4,142,737
------------
TOTAL INVESTMENTS (102.1%)
(Cost/Amortized Cost
$69,235,746)....................... 76,158,954
OTHER ASSETS
LESS LIABILITIES (--2.1%) ......... (1,571,305)
------------
NET ASSETS (100%) ................... $ 74,587,649
============
</TABLE>
- ----------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
103
<PAGE>
EQ ADVISORS TRUST
LAZARD LARGE CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $ 77,993,260
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 9,925,808
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 8,253,475
Aggregate gross unrealized depreciation .......... (1,391,664)
------------
Net unrealized appreciation ...................... $ 6,861,811
============
Federal income tax cost of investments ........... $ 69,297,143
============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$1,496,396 which was secured by collateral of
$1,512,300.
The Portfolio has a net capital loss carryforward of $475,091 which expires in
the year 2006.
See Notes to Financial Statements.
104
<PAGE>
EQ ADVISORS TRUST
LAZARD SMALL CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ------------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (4.3%)
CHEMICALS--SPECIALTY (2.2%)
A. Schulman, Inc. ....................... 18,600 $ 421,987
Ferro Corp. ............................. 13,000 338,000
H.B. Fuller Co. ......................... 7,400 356,125
----------
1,116,112
----------
METALS & MINING (0.6%)
Wyman-Gordon Co.* ....................... 30,000 307,500
----------
PAPER (1.5%)
Albany International Corp.,
Class A ............................... 39 737
Chesapeake Corp. ........................ 3,800 140,125
Unisource Worldwide, Inc. ............... 37,300 270,425
Wausau-Mosinee Paper Corp. .............. 21,100 373,206
----------
784,493
----------
TOTAL BASIC MATERIALS ................. 2,208,105
----------
BUSINESS SERVICES (8.0%)
PRINTING, PUBLISHING,
BROADCASTING (5.0%)
Banta Corp. ............................. 26,100 714,488
Bowne & Co. ............................. 50,900 909,838
Gibson Greetings, Inc.* ................. 16,600 197,125
Nielsen Media Research .................. 20,566 370,188
World Color Press, Inc.* ................ 11,400 346,987
----------
2,538,626
----------
PROFESSIONAL SERVICES (0.6%)
CDI Corp.* .............................. 14,500 292,719
----------
TRUCKING, SHIPPING (2.4%)
CNF Transportation, Inc. ................ 14,000 525,875
Circle International Group, Inc. ........ 22,200 455,100
Pittston BAX Group ...................... 22,200 246,975
----------
1,227,950
----------
TOTAL BUSINESS SERVICES ............... 4,059,295
----------
CAPITAL GOODS (20.2%)
BUILDING & CONSTRUCTION (3.5%)
Crane Co. ............................... 20,450 617,334
Hussmann International, Inc. ............ 21,300 412,688
JLG Industries, Inc. .................... 36,600 571,875
Kaufman & Broad Home Corp. .............. 6,000 172,500
----------
1,774,397
----------
BUILDING MATERIALS & FOREST
PRODUCTS (3.7%)
Apogee Enterprises, Inc. ................ 38,700 435,375
Eagle Hardware & Garden, Inc.* 17,200 559,000
Hughes Supply, Inc. ..................... 9,500 277,875
Lone Star Industries, Inc. .............. 15,800 581,638
Martin Marietta Materials, Inc. ......... 700 43,531
----------
1,897,419
----------
ELECTRICAL EQUIPMENT (8.4%)
Anixter International, Inc.* ............ 39,700 806,406
Belden, Inc. ............................ 19,500 413,156
Credence Systems Corp.* ................. 28,600 529,100
Harman International Industries,
Inc. .................................. 13,000 495,625
Lam Research Corp.* ..................... 15,700 279,656
MagneTek, Inc.* ......................... 38,700 447,469
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ------------------
<S> <C> <C>
Pittston Brink's Group .................. 14,700 $ 468,562
Scotsman Industries, Inc. ............... 11,900 244,694
Silicon Valley Group, Inc.* ............. 10,600 135,150
VLSI Technology, Inc.* .................. 44,800 490,000
----------
4,309,818
----------
MACHINERY (4.6%)
Aeroquip-Vickers, Inc. .................. 3,800 113,763
Briggs & Stratton Corp. ................. 14,100 703,238
OmniQuip International, Inc. ............ 19,300 289,500
Regal-Beloit Corp. ...................... 22,500 517,500
Roper Industries, Inc. .................. 16,100 328,037
Watts Industries, Inc., Class A ......... 24,000 399,000
----------
2,351,038
----------
TOTAL CAPITAL GOODS ................... 10,332,672
----------
CONSUMER CYCLICALS (13.6%)
APPAREL & TEXTILES (1.2%)
Oakley, Inc.* ........................... 28,700 270,856
Wet Seal, Inc., Class A* ................ 12,000 362,250
----------
633,106
----------
AUTO RELATED (5.1%)
Borg-Warner Automotive, Inc. ............ 11,000 613,937
Budget Group, Inc.* ..................... 28,100 446,088
Dura Automotive Systems, Inc.* . ........ 8,900 303,713
Mark IV Industries, Inc. ................ 33,600 436,800
Tower Automotive* ....................... 32,000 798,000
----------
2,598,538
----------
FOOD SERVICES, LODGING (0.7%)
Prime Hospitality Corp.* ................ 33,900 358,069
----------
HOUSEHOLD FURNITURE, APPLIANCES (3.3%)
Bassett Furniture Industries, Inc. 22,800 550,050
Furniture Brands International,
Inc.* ................................. 22,800 621,300
Pier 1 Imports, Inc. .................... 53,800 521,188
----------
1,692,538
----------
LEISURE RELATED (1.2%)
Polaris Industries, Inc. ................ 15,100 591,731
----------
RETAIL--GENERAL (2.1%)
Cole National Corp.* .................... 14,100 241,463
Stride Rite Corp. ....................... 37,100 324,625
Talbots, Inc. ........................... 15,600 489,450
----------
1,055,538
----------
TOTAL CONSUMER CYCLICALS .............. 6,929,520
----------
CONSUMER NON-CYCLICALS (13.1%)
CONTAINERS (1.7%)
First Brands Corp. ...................... 21,400 843,962
----------
DRUGS (1.1%)
Perrigo Co.* ............................ 61,800 544,612
----------
FOODS (4.0%)
American Italian Pasta Co.,
Class A* .............................. 18,000 474,750
International Multifoods Corp. .......... 5,700 147,131
Lance, Inc. ............................. 18,300 364,856
Ralcorp Holdings, Inc.* ................. 22,900 417,925
Vlasic Foods International, Inc.* . ..... 27,500 654,844
----------
2,059,506
----------
</TABLE>
105
<PAGE>
EQ ADVISORS TRUST
LAZARD SMALL CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ----------------
<S> <C> <C>
HOSPITAL SUPPLIES & SERVICES (4.0%)
ADAC Laboratories* ...................... 5,900 $ 117,815
Apria Healthcare Group, Inc.* ........... 51,900 463,856
Integrated Health Services, Inc.* . ..... 11,400 161,025
Magellan Health Services, Inc.* ......... 19,600 164,150
Sierra Health Services, Inc.* ........... 26,850 565,528
Sun Healthcare Group, Inc.* ............. 25,600 168,000
Sunrise Medical, Inc.* .................. 20,200 251,238
West Co., Inc. .......................... 4,894 174,655
----------
2,066,267
----------
RETAIL--FOOD (2.3%)
General Nutrition Cos., Inc.* ........... 25,800 419,250
Lone Star Steakhouse & Saloon,
Inc.* ................................. 28,300 260,006
Ryan's Family Steak Houses,
Inc.* ................................. 39,200 485,100
----------
1,164,356
----------
TOTAL CONSUMER NON-CYCLICALS 6,678,703
----------
CREDIT SENSITIVE (21.0%)
BANKS (3.2%)
Astoria Financial Corp. ................. 11,900 544,425
HUBCO, Inc. ............................. 21,516 648,170
Southwest Bancorporation of
Texas, Inc.* .......................... 15,400 275,275
Staten Island Bancorp, Inc. ............. 7,900 157,506
----------
1,625,376
----------
INSURANCE (7.9%)
Arthur J. Gallagher & Co. ............... 8,600 379,475
Delphi Financial Group, Inc.,
Class A* .............................. 5,228 274,143
E.W. Blanch Holdings, Inc. .............. 10,900 517,069
Enhance Financial Services
Group, Inc. ........................... 18,000 540,000
Frontier Insurance Group, Inc. .......... 22,650 291,619
HCC Insurance Holdings, Inc. ............ 21,700 382,463
Horace Mann Educators Corp. ............. 14,000 399,000
NAC Re Corp. ............................ 12,200 572,637
Orion Capital Corp. ..................... 7,100 282,669
Reliance Group Holdings, Inc. ........... 31,900 410,712
----------
4,049,787
----------
MORTGAGE RELATED (1.9%)
Amerin Corp.* ........................... 18,300 432,338
Toll Brothers, Inc.* .................... 22,600 509,912
----------
942,250
----------
REAL ESTATE (5.7%)
Catellus Development Corp.* ............. 30,300 433,669
Chateau Communities, Inc. ............... 15,900 466,069
FelCor Lodging Trust, Inc. .............. 22,700 523,518
Glenborough Realty Trust, Inc. .......... 27,600 562,350
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
------------------ ----------------
<S> <C> <C>
JDN Realty Corp. ........................ 3,500 $ 75,469
Kilroy Realty Corp. ..................... 15,900 365,700
Mack-Cali Realty Corp. .................. 16,100 497,087
----------
2,923,862
----------
UTILITY--ELECTRIC (1.1%)
Calpine Corp.* .......................... 22,600 570,650
----------
UTILITY--GAS (1.2%)
Sierra Pacific Resources ................ 16,500 627,000
----------
TOTAL CREDIT SENSITIVE ................ 10,738,925
----------
DIVERSIFIED (1.6%)
MISCELLANEOUS (1.6%)
ACX Technologies, Inc.* ................. 16,500 218,625
Walter Industries, Inc.* ................ 37,800 578,813
----------
TOTAL DIVERSIFIED ..................... 797,438
----------
ENERGY (3.3%)
OIL--DOMESTIC (1.9%)
Barrett Resources Corp.* ................ 20,200 484,800
Devon Energy Corp. ...................... 14,900 457,244
----------
942,044
----------
OIL--INTERNATIONAL (1.4%)
Helmerich & Payne, Inc. ................. 22,100 428,187
Vintage Petroleum, Inc. ................. 33,700 290,663
----------
718,850
----------
TOTAL ENERGY .......................... 1,660,894
----------
TECHNOLOGY (8.4%)
ELECTRONICS (1.2%)
Lattice Semiconductor Corp.* ............ 13,100 601,372
----------
OFFICE EQUIPMENT (1.0%)
Wang Laboratories, Inc.* ................ 18,600 516,150
----------
OFFICE EQUIPMENT SERVICES (1.8%)
Bell & Howell Co.* ...................... 21,600 816,750
Tuboscope, Inc.* ........................ 14,700 119,438
----------
936,188
----------
TELECOMMUNICATIONS (4.4%)
Allen Telecom, Inc.* .................... 35,800 239,412
Electronics for Imaging, Inc.* .......... 16,200 651,037
KEMET Corp.* ............................ 38,300 430,875
Oak Industries, Inc.* ................... 13,600 476,000
Vanguard Cellular Systems, Inc.,
Class A* .............................. 17,700 456,881
----------
2,254,205
----------
TOTAL TECHNOLOGY ...................... 4,307,915
----------
TOTAL COMMON STOCKS (93.5%)
(Cost $48,954,616) .................... 47,713,467
----------
</TABLE>
106
<PAGE>
EQ ADVISORS TRUST
LAZARD SMALL CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
-------------- --------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (7.3%)
U.S. Treasury Bill
4/8/99
(Cost/Amortized Cost
$3,710,905)....................... $ 3,755,000 $ 3,712,644
-----------
TOTAL INVESTMENTS (100.8%)
(Cost/Amortized Cost
$52,665,521)...................... 51,426,111
OTHER ASSETS
LESS LIABILITIES (-0.8%) ......... (380,446)
-----------
NET ASSETS (100%) .................. $51,045,665
===========
</TABLE>
- ----------
* Non-income producing
107
<PAGE>
EQ ADVISORS TRUST
LAZARD SMALL CAP VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1998
- --------------------------------------------------------------------------------
Investment security transactions for the year ended December 31, 1998 were as
follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities ......... $55,011,027
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities ......... 4,586,987
</TABLE>
As of December 31, 1998, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .......... $ 4,102,118
Aggregate gross unrealized depreciation .......... (5,420,137)
-------------
Net unrealized (depreciation) .................... $ (1,318,019)
=============
Federal income tax cost of investments ........... $ 52,744,130
=============
</TABLE>
At December 31, 1998, the Portfolio had loaned securities with a total value of
$3,931,926 which was secured by collateral of
$3,983,725.
For the period from January 1, 1998 to December 31, 1998, the Portfolio
incurred approximately $150 as brokerage commissions with Donaldson, Lufkin &
Jenrette Securities Corp., an affiliated broker/dealer.
The Portfolio has a net capital loss carryforward of $597,372 which expires in
the year 2006.
See Notes to Financial Statements.
108
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
Note 1 Organization and Significant Accounting Policies
EQ Advisors Trust (the "Trust") was organized as a Delaware business trust
on October 31, 1996 and is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management investment company with
eighteen diversified series portfolios and three non-diversified series
portfolios (each a "Portfolio"). The diversified Portfolios include the Merrill
Lynch Basic Value Equity Portfolio which commenced operations on May 1, 1997,
MFS Emerging Growth Companies Portfolio which commenced operations on May 1,
1997, MFS Research Portfolio which commenced operations on May 1, 1997,
EQ/Putnam Balanced Portfolio which commenced operations on May 1, 1997,
EQ/Putnam Growth & Income Value Portfolio which commenced operations on May 1,
1997, EQ/ Putnam International Equity Portfolio which commenced operations on
May 1, 1997, EQ/Putnam Investors Growth Portfolio which commenced operations on
May 1, 1997, T. Rowe Price Equity Income Portfolio which commenced operations
on May 1, 1997, T. Rowe Price International Stock Portfolio which commenced
operations on May 1, 1997, Warburg Pincus Small Company Value Portfolio which
commenced operations on May 1, 1997, BT Equity 500 Index Portfolio which
received initial capital on December 31, 1997, BT International Equity Index
Portfolio which received initial capital on December 31, 1997, BT Small Company
Index Portfolio which received initial capital on December 31, 1997, JPM Core
Bond Portfolio which received initial capital on December 31, 1997, Lazard
Large Cap Value Portfolio which received initial capital on December 31, 1997,
EQ/Evergreen Foundation Portfolio which received initial capital on December
31, 1998, EQ/Evergreen Portfolio which received initial capital on December 31,
1998 and the MFS Growth with Income Portfolio which received initial capital on
December 31, 1998. The non-diversified Portfolios include the Merrill Lynch
World Strategy Portfolio which commenced operations on May 1, 1997, Morgan
Stanley Emerging Markets Equity Portfolio which commenced operations on August
20, 1997 and the Lazard Small Cap Value Portfolio which received initial
capital on December 31, 1997. The Portfolios that received initial capital on
December 31, 1997, commenced operations on January 1, 1998. The Portfolios that
received initial capital on December 31, 1998, had no operations except the
issuance of shares of Class IB Common Stock. Portfolios that received initial
capital on December 31, 1998, commenced operations on January 1, 1999.
The Trust has the right to issue two classes of shares, Class IA and Class
IB. As of and during the year ended December 31, 1998, the Trust had Class IB
shares outstanding for each Portfolio. On November 24, 1998, the Trust offered
for sale Class IA shares for the MFS Emerging Growth Companies Portfolio, T.
Rowe Price Equity Income Portfolio, Warburg Pincus Small Company Value
Portfolio and the BT International Equity Index Portfolio. The Class IB shares
are subject to distribution fees imposed under a distribution plan (the
"Distribution Plan") adopted pursuant to Rule 12b-1 under the 1940 Act. Under
the Trust's multiple class distribution system, both classes of shares have
identical voting, dividend, liquidation and other rights, other than the
payment of distribution fees under the Distribution Plan. The Trust's shares
are currently sold only to insurance company separate accounts in connection
with variable life insurance contracts and variable annuity certificates and
contracts issued by The Equitable Life Assurance Society of the United States
("Equitable"), a wholly-owned subsidiary of The Equitable Companies
Incorporated, and to the Equitable Investment Plan for Employees, Managers and
Agents.
The investment objectives of each Portfolio are as follows:
Merrill Lynch Basic Value Equity Portfolio (advised by Merrill Lynch Asset
Management, L.P.) -- Capital appreciation and, secondarily, income by investing
in securities, primarily equities, that the Adviser (as defined below) of the
Portfolio believes are undervalued and therefore represent basic investment
value.
Merrill Lynch World Strategy Portfolio (advised by Merrill Lynch Asset
Management, L.P.) -- High total investment return by investing primarily in a
portfolio of equity and fixed income securities, including convertible
securities, of United States and foreign issuers.
109
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
MFS Emerging Growth Companies Portfolio (advised by Massachusetts
Financial Services Co.) -- Long-term capital growth.
MFS Research Portfolio (advised by Massachusetts Financial Services Co.)
- -- Long-term growth of capital and future income.
EQ/Putnam Balanced Portfolio (advised by Putnam Investment Management,
Inc.) -- Balanced investment composed of a well-diversified portfolio of stocks
and bonds that will produce both capital growth and current income.
EQ/Putnam Growth & Income Value Portfolio (advised by Putnam Investment
Management, Inc.) -- Capital growth. Current income is a secondary objective.
EQ/Putnam International Equity Portfolio (advised by Putnam Investment
Management, Inc.) -- Capital appreciation.
EQ/Putnam Investors Growth Portfolio (advised by Putnam Investment
Management, Inc.) -- Long-term growth of capital and any increased income that
results from this growth.
T. Rowe Price Equity Income Portfolio (advised by T. Rowe Price
Associates, Inc.) -- Substantial dividend income and also capital appreciation
by investing primarily in dividend-paying common stocks of established
companies.
T. Rowe Price International Stock Portfolio (advised by Rowe Price-Fleming
International, Inc.) -- Long-term growth of capital through investment
primarily in common stocks of established non-United States companies.
Warburg Pincus Small Company Value Portfolio (advised by Warburg Pincus
Asset Management, Inc.) -- Long-term capital appreciation.
Morgan Stanley Emerging Markets Equity Portfolio (advised by Morgan
Stanley Asset Management, Inc.) -- Long-term capital appreciation by investing
primarily in equity securities of emerging country issuers.
BT Equity 500 Index Portfolio (advised by Bankers Trust Co.) -- Replicate
as closely as possible (before the deduction of Portfolio expenses) the total
return of the S&P 500 Index.
BT International Equity Index Portfolio (advised by Bankers Trust Co.) --
Replicate as closely as possible (before the deduction of Portfolio expenses)
the total return of the MSCI EAFE Index.
BT Small Company Index Portfolio (advised by Bankers Trust Co.) --
Replicate as closely as possible (before the deduction of Portfolio expenses)
the total return of the Russell 2000 Index.
JPM Core Bond Portfolio (advised by J.P. Morgan Investment Management
Inc.) -- High total return consistent with moderate risk of capital and
maintenance of liquidity.
Lazard Large Cap Value Portfolio (advised by Lazard Asset Management) --
Capital appreciation by investing primarily in equity securities of companies
with relatively large market capitalizations (i.e., companies sharing market
capitalizations of at least 5 billion at the time of initial purchase that
appear to the Adviser to be inexpensively priced relative to the return on
total capital or equity.
Lazard Small Cap Value Portfolio (advised by Lazard Asset Management) --
Capital appreciation by investing in equity securities of United States
companies with small market capitalizations (i.e., companies in the range of
companies represented in the Russell 2000 Index) that the Adviser considers
inexpensively priced relative to the return on total capital or equity.
EQ/Evergreen Foundation Portfolio (advised by Evergreen Asset Management
Corp.) ---- Reasonable income, conservation of capital and capital appreciation
(in order of priority).
110
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
EQ/Evergreen Portfolio (advised by Evergreen Asset Management Corp.) ----
Capital appreciation.
MFS Growth with Income Portfolio (advised by Massachusetts Financial
Services Co.) -- Reasonable current income and long-term growth of capital and
income.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
The following is a summary of the significant accounting policies of the
Trust:
Valuation:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are valued
at the last sale price on the primary exchange for such securities or, if there
is no sale, at the latest available bid price. Other unlisted stocks are valued
at their last sale price or, if no reported sale occurs during the day, at a
bid price estimated by a broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage-backed and asset-backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quote will be obtained from a
broker and converted to a price.
Options, including options on futures that are traded on exchanges, are
valued at their last sale price, and if the last sale price is not available
then the previous day's sale price is used. However, if the bid price is higher
or the asked price is lower than the previous last sale price, the higher bid
or lower asked price may be used. Options not traded on an exchange or actively
traded are valued at fair value as determined in good faith by the Board of
Trustees.
Long-term corporate bonds are valued at a price obtained from a bond
pricing service of a major dealer in bonds when such prices are available;
however, when such prices are not available, such bonds are valued at a bid
price estimated by two brokers.
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, are valued at
representative quoted bid prices.
Foreign securities not traded directly, or in American Depositary Receipt
(ADR) or similar form in the United States, are valued at representative quoted
prices from the primary exchange in the currency of the country of origin.
Short-term debt securities that mature in 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt securities
that mature in more than 60 days are valued at representative quoted prices.
Futures contracts are valued at their last sale price or, if there is no
sale, at the latest available bid price.
Forward foreign exchange contracts are valued by interpolating between the
forward and spot currency rates as quoted by a pricing service as of a
designated hour on the valuation date.
Other securities and assets for which market quotations are not readily
available or for which valuation can not be provided, are valued at fair value
as determined in good faith by the Board of Trustees.
111
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
Securities transactions are recorded on the trade date net of brokerage
fees, commissions, and transfer fees.
Interest income (including amortization of premium and discount on
long-term securities using the effective yield method) is accrued daily.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the investments sold.
Expenses attributable to a single Portfolio are charged to that Portfolio.
Expenses of the Trust not attributable to a single Portfolio are charged to
each Portfolio in proportion to the average net assets of each Portfolio.
Equitable pays substantially all operating expenses on behalf of the Trust for
which Equitable is then reimbursed by the Trust.
All income earned and expenses incurred by each Portfolio are borne on a
pro-rata basis by each outstanding class of shares, based on the proportionate
interest in the Portfolio represented by the daily net assets of such class,
except for distribution fees which are charged on a class specific basis.
The books and records of the Trust are kept in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the bid price last quoted
by a composite list of major U.S. banks at the following dates:
(i) market value of investment securities, other assets and liabilities --
at the valuation date.
(ii) purchase and sales of investment securities, income and expenses --
at the date of such transactions.
The Portfolios do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss on
securities.
Net currency gains or losses realized and unrealized as a result of
differences between interest or dividends, withholding taxes, forward foreign
currency exchange contracts and foreign cash recorded on the Portfolio's books
and the U.S. dollar equivalent amount actually received or paid are presented
under foreign currency transactions in the realized and unrealized gains and
losses section of the Statements of Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code of 1986, as amended (the "Code") applicable to regulated investment
companies and to distribute substantially all of its net investment income and
net realized capital gains to shareholders of each Portfolio. Therefore, no
Federal income tax provision is required. Dividends from net investment income
are declared and distributed annually for all Portfolios. Dividends from net
realized short-term and long-term capital gains are declared and distributed at
least annually to the shareholders of the Portfolios to which such gains are
attributable. All dividends are reinvested in additional full and fractional
shares of the related Portfolios. All dividends are distributed on a tax basis
and, as such, the amounts and character may differ from financial statement
investment income and realized capital gains. Those differences are primarily
due to differing book and tax treatments for deferred organization costs,
foreign currency transactions, post-October losses, losses due to wash sales
transactions, mark-to-market of forward contracts, mark-to-market of passive
foreign investment companies and straddle transactions. In addition, each
Portfolio will comply with the investment diversification requirements of
Subchapter L of the Code applicable to segregated asset accounts.
Permanent book and tax basis differences relating to shareholder
distributions resulted in reclassifications to undistributed net investment
income (loss), accumulated net realized gain (loss) and paid in capital at
December 31, 1998 as follows:
112
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
UNDISTRIBUTED
(OVERDISTRIBUTED) ACCUMULATED PAID
NET INVESTMENT NET REALIZED IN
PORTFOLIOS: INCOME GAIN (LOSS) CAPITAL
- ---------------------------------------------------------- ------------------- -------------- ------------
<S> <C> <C> <C>
Merrill Lynch Basic Value Equity Portfolio ............... $ 12,572 $ (8,838) $ (3,734)
Merrill Lynch World Strategy Portfolio ................... (304,514) 312,021 (7,507)
MFS Emerging Growth Companies Portfolio .................. 757,001 12,052 (769,053)
MFS Research Portfolio ................................... (9,613) 19,945 (10,332)
EQ/Putnam Balanced Portfolio ............................. (47,181) 57,523 (10,342)
EQ/Putnam Growth & Income Value Portfolio ................ 13,420 -- (13,420)
EQ/Putnam International Equity Portfolio ................. 66,167 165,381 (231,548)
EQ/Putnam Investors Growth Portfolio ..................... 11,042 -- (11,042)
T. Rowe Price Equity Income Portfolio .................... 6,272 7,065 (13,337)
T. Rowe Price International Stock Portfolio .............. 288,759 (12,005) (276,754)
Warburg Pincus Small Company Value Portfolio ............. 42,064 -- (42,064)
Morgan Stanley Emerging Markets Equity Portfolio ......... (147,673) 158,694 (11,021)
BT Equity 500 Index Portfolio ............................ 15,853 -- (15,853)
BT International Equity Index Portfolio .................. 283,331 (266,675) (16,656)
BT Small Company Index Portfolio ......................... 13,068 -- (13,068)
JPM Core Bond Portfolio .................................. (4,099) 44,341 (40,242)
Lazard Large Cap Value Portfolio ......................... 9,751 -- (9,751)
Lazard Small Cap Value Portfolio ......................... 9,152 -- (9,152)
</TABLE>
Permanent book-tax differences, if any, are not included in ending
undistributed net investment income (loss) for the purpose of calculating net
investment income (loss) per share in the financial highlights.
Net capital and net currency losses incurred after October 31 and within
the taxable year are deemed to arise on the first business day of the
Portfolio's next taxable year. For the period from November 1, 1998 through
December 31, 1998 the following Portfolios incurred and elected to defer until
January 1, 1999 for U.S. Federal income tax purposes net capital and net
currency losses as stated below:
<TABLE>
<CAPTION>
NET NET
CURRENCY CAPITAL
PORTFOLIOS: LOSSES LOSSES
- ---------------------------------------------------------- ---------- ------------
<S> <C> <C>
Merrill Lynch World Strategy Portfolio ................... $61,936 $ 112,098
EQ/Putnam Balanced Portfolio ............................. 13,754 --
T. Rowe Price Equity Income Portfolio .................... 81 --
T. Rowe Price International Stock Portfolio .............. 29,137 162,172
Warburg Pincus Small Company Value Portfolio ............. -- 4,998,460
Morgan Stanley Emerging Markets Equity Portfolio ......... -- 1,409,492
BT International Equity Index Portfolio .................. -- 20,670
JPM Core Bond Portfolio .................................. -- 14,742
</TABLE>
Costs incurred by the Trust in connection with its organization have been
allocated equally to and capitalized by each of the initial twelve Portfolios
and are deferred and amortized on a straight line basis over a 60-month period
from the date the Portfolios commenced operations. On December 31, 1997 an
additional $188,040 in organizational costs were capitalized and allocated
evenly among the BT Equity 500 Index Portfolio, BT International Equity Index
Portfolio, BT Small Company Index Portfolio, JPM Core Bond Portfolio, Lazard
Large Cap Value Portfolio and the Lazard Small Cap Value Portfolio in
connection with their organization. Each of these Portfolios commenced
operations on January 1, 1998.
113
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
The Manager has elected to waive the obligations of the Trust under the
Organizational Expense Reimbursement Agreement to reimburse and pay the Manager
for organization expenses incurred with the formation of the EQ/Evergreen
Foundation Portfolio, EQ/Evergreen Portfolio and MFS Growth with Income
Portfolio.
For all Portfolios, the Board of Trustees has approved the lending of
portfolio securities, through its custodian bank The Chase Manhattan Bank
("Chase") acting as lending agent, to certain approved broker-dealers in
exchange for negotiated lenders' fees. By lending investment securities, a
Portfolio attempts to increase its net investment income through the receipt of
interest on the loan. Any gain or loss in the market price of the securities
loaned that might occur and any interest earned or dividends declared during
the term of the loan would be for the account of the Portfolio. Risks of delay
in recovery of the securities or even loss of rights in the collateral may
occur should the borrower of the securities fail financially. Risks may also
arise to the extent that the value of the securities loaned increases above the
value of the collateral received. Any such loan of portfolio securities will be
continuously secured by collateral in cash or high grade debt securities at
least equal to the market value of the security loaned. Chase will indemnify
each Portfolio from any loss resulting from a borrower's failure to return a
loaned security when due. Chase invests the cash collateral and retains a
portion of the interest earned. The net amount of interest earned, after the
interest rebate, is included in the Statements of Operations as securities
lending income. At December 31, 1998, the cash collateral received by each
Portfolio for securities loaned was invested by Chase in a money market fund
and repurchase agreements in which each Portfolio had a pro-rata interest equal
to the amount of cash collateral contributed.
Repurchase Agreements:
Each Portfolio except Merrill Lynch Basic Value Equity and Merrill Lynch
World Strategy may enter into repurchase agreements with qualified and Board of
Trustees approved banks, broker-dealers or other financial institutions as a
means of earning a fixed rate of return on its cash reserves for periods as
short as overnight. A repurchase agreement is a contract pursuant to which a
Portfolio, against receipt of securities of at least equal value including
accrued interest, agrees to advance a specified sum to the financial
institution which agrees to reacquire the securities at a mutually agreed upon
time (usually one day) and price. Each repurchase agreement entered into by a
Portfolio will provide that the value of the collateral underlying the
repurchase agreement will always be at least equal to the repurchase price,
including any accrued interest. A Portfolio's right to liquidate such
securities in the event of a default by the seller could involve certain costs,
losses or delays and, to the extent that proceeds from any sale upon a default
of the obligation to repurchase are less than the repurchase price, the
Portfolio could suffer a loss.
Options Written:
All Portfolios (except for the MFS Research Portfolio and the Lazard Small
Cap Value Portfolio) may write (sell) covered options as a hedge to provide
protection against adverse movements in the price of securities in the
Portfolio or to enhance investment performance. Each of the Portfolios (except
for the MFS Research Portfolio, BT Equity 500 Index Portfolio, BT Small Company
Index Portfolio, Lazard Large Cap Value Portfolio, Lazard Small Cap Value
Portfolio and EQ/Evergreen Portfolio) may purchase and sell exchange traded
options on foreign currencies. When a Portfolio writes an option, an amount
equal to the premium received by the Portfolio is recorded as a liability and
is subsequently adjusted on a daily basis to the current market price of the
option written. Premiums received from writing options which expire unexercised
are recognized as gains on the expiration date. Premiums received from writing
options which are exercised or are canceled in closing purchase transactions
are offset against the cost of any securities purchased or added to the
proceeds or netted against the amount paid on the transaction to determine the
realized gain or loss. In writing options, a Portfolio must assume that the
option may be exercised at any time prior to the expiration of its obligation
as a writer, and that in such circumstances the net proceeds of the sale or
cost of purchase of the underlying securities and currencies pursuant to the
114
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
call or put option may be substantially below or above the prevailing market
price. A Portfolio also has the additional risk of not being able to enter into
a closing purchase transaction if a liquid secondary market does not exist and
bears the risk of unfavorable changes in the price of the financial instruments
underlying the options.
Futures Contracts, Forward Commitments and Foreign Currency Exchange Contracts:
The futures contracts used by the Portfolios are agreements to buy or sell
a financial instrument for a set price in the future. Each Portfolio (with the
exception of the MFS Research Portfolio, the Lazard Large Cap Value Portfolio
and the Lazard Small Cap Value Portfolio) may buy or sell futures contracts for
the purpose of protecting its portfolio securities against future changes in
interest rates and indices which might adversely affect the value of the
Portfolio's securities or the price of securities that it intends to purchase
at a later date. Initial margin deposits are made upon entering into futures
contracts and can be in cash, certain money market instruments, treasury
securities or other liquid, high grade debt. At December 31, 1998 the BT
International Equity Index Portfolio had restricted foreign cash in the amount
of $610,292, which was held by the broker as collateral which is included in
the foreign cash balance on the Statement of Assets and Liabilities. During the
period the futures contracts are open, changes in the market price of the
contract are recognized as unrealized gains or losses by "marking-to-market" at
the end of each trading day. Variation margin payments on futures contracts are
received or made, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Portfolio records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolio's basis in the contract. Should interest rates
or indices move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the futures contracts and may incur a loss. The use of futures
contracts transactions involves the risk of imperfect correlation in movements
in the price of futures contracts, interest rates and the underlying hedged
assets.
Each Portfolio (except the Warburg Pincus Small Company Value Portfolio)
may make contracts to purchase securities for a fixed price at a future date
beyond customary settlement time ("forward commitments") if it holds, and
maintains until the settlement date in a segregated account, cash or liquid
securities in an amount sufficient to meet the purchase price, or if it enters
into offsetting contracts for the forward sale of other securities it owns.
Forward commitments may be considered securities in themselves and involve a
risk of loss if the value of the security to be purchased or sold declines or
increases prior to the settlement date, which risk is in addition to the risk
of decline in value of the Portfolio's other assets. Where such purchases and
sales are made through dealers, a Portfolio relies on the dealer to consummate
the transactions. The dealer's failure to do so may result in the loss to a
Portfolio of an advantageous yield or price.
Each of the Portfolios (except the BT Equity 500 Index Portfolio, BT Small
Company Index Portfolio, Lazard Small Cap Value Portfolio and EQ/Evergreen
Portfolio) may purchase foreign currency on a spot (or cash) basis. In
addition, each of the Portfolios (except the MFS Research Portfolio, BT Equity
500 Index Portfolio, BT Small Company Index Portfolio, Lazard Large Cap Value
Portfolio, Lazard Small Cap Value Portfolio and EQ/Evergreen Portfolio) may
enter into contracts to purchase or sell foreign currencies at a future date
("forward contracts"). A forward foreign currency exchange contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the original contracts and the closing of such contracts is included in
realized gains or losses from foreign currency transactions. The Advisers, as
defined below, may engage in these forward contracts to protect against
uncertainty in the level of future exchange rates in connection with the
purchase and sale of portfolio securities ("transaction hedging") and to
protect the value of specific portfolio positions ("position hedging").
115
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
Swaps:
The Morgan Stanley Emerging Markets Equity Portfolio, BT International
Equity Index Portfolio and JPM Core Bond Portfolio may each invest in swap
contracts, which are derivatives in the form of a contract or other similar
instrument to exchange the return generated by one instrument for the return
generated by another instrument. The payment streams are calculated by
reference to a specified index and agreed upon notional amount. A Portfolio
will usually enter into swaps on a net basis, i.e., the two return streams are
netted out in a cash settlement on the payment date or dates specified in the
instrument, with the Portfolio receiving or paying, as the case may be, only
the net amount of the two returns. A Portfolio's obligations under a swap
agreement will be accrued daily (offset against any amounts owing to the
Portfolio) and any accrued but unpaid net amounts owed to a swap counterparty
will be covered by the maintenance of a segregated account consisting of cash,
or other liquid obligations. A Portfolio will not enter into any swap agreement
unless the counterparty meets the rating requirements set forth in guidelines
established by the Trust's Board of Trustees.
Market and Credit Risk:
Written options, futures contracts, forward commitments, forward foreign
currency exchange contracts and swaps involve elements of both market and
credit risk in excess of the amounts reflected in the Statements of Assets and
Liabilities. The contract amounts of these covered written options, futures
contracts, forward commitments, forward foreign currency exchange contracts and
swaps reflect the extent of the Portfolio's exposure to off-balance sheet risk.
The Portfolio bears the market risk which arises from any changes in security
values. The credit risk for futures contracts is limited to failure of the
exchange or board of trade which acts as the counterparty to the Portfolio's
futures transactions. Forward commitments, forward foreign currency exchange
contracts and swaps are done directly with the counterparty and not through an
exchange and can be terminated only by agreement of both parties to the forward
commitments or forward foreign currency exchange contracts. With respect to
such transactions there is no daily margin settlement and the Portfolio is
exposed to the risk of default by the counterparty.
Note 2 Management of the Trust
The Trust has entered into an investment management agreement (the
"Management Agreement") with EQ Financial Consultants, Inc. (the "Manager"), an
indirect wholly-owned subsidiary of Equitable. The Management Agreement states
that the Manager will (i) have overall supervisory responsibility for the
general management and investment of each Portfolio's assets; (ii) select and
contract with investment advisers ("Advisers") to manage the investment
operations and composition of each and every Portfolio; (iii) monitor the
Advisers' investment programs and results; (iv) oversee compliance by the Trust
with various Federal and state statutes; and (v) carry out the directives of
the Board of Trustees. For its services under the Management Agreement, the
Manager will receive an annual fee as a percentage of average daily net assets,
for each of the Portfolios, calculated daily and payable quarterly as follows:
The fee is calculated based on an annual rate of:
<TABLE>
<CAPTION>
<S> <C>
0.25% OF AVERAGE DAILY NET ASSETS OF THE
BT Equity 500 Index Portfolio
BT Small Company Index Portfolio
0.35% OF AVERAGE DAILY NET ASSETS OF THE
BT International Equity Index Portfolio
0.45% OF AVERAGE DAILY NET ASSETS OF THE
JPM Core Bond Portfolio
0.55% OF AVERAGE DAILY NET ASSETS OF THE
Merrill Lynch Basic Value Equity Portfolio
MFS Emerging Growth Companies Portfolio
</TABLE>
116
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
<TABLE>
<CAPTION>
<S> <C>
MFS Research Portfolio
EQ/Putnam Balanced Portfolio
EQ/Putnam Growth & Income Value Portfolio
EQ/Putnam Investors Growth Portfolio
T. Rowe Price Equity Income Portfolio
Lazard Large Cap Value Portfolio
MFS Growth with Income Portfolio
0.63% OF AVERAGE DAILY NET ASSETS OF THE
EQ/Evergreen Foundation Portfolio
0.65% OF AVERAGE DAILY NET ASSETS OF THE
Warburg Pincus Small Company Value Portfolio
0.70% OF AVERAGE DAILY NET ASSETS OF THE
Merrill Lynch World Strategy Portfolio
EQ/Putnam International Equity Portfolio
0.75% OF AVERAGE DAILY NET ASSETS OF THE
T. Rowe Price International Stock Portfolio
EQ/Evergreen Portfolio
0.80% OF AVERAGE DAILY NET ASSETS OF THE
Lazard Small Cap Value Portfolio
1.15% OF AVERAGE DAILY NET ASSETS OF THE
Morgan Stanley Emerging Markets Equity Portfolio
</TABLE>
On behalf of the Trust, the Manager has entered into investment advisory
agreements ("Advisory Agreements") with each of the Advisers. Each of the
Advisory Agreements obligates the Advisers for the respective Portfolios to:
(i) continuously furnish investment programs for the Portfolios; (ii) place all
orders for the purchase and sale of investments for the Portfolios with brokers
or dealers selected by the Manager or the respective Advisers; and (iii)
perform certain limited related administrative functions in connection
therewith. The Manager pays the expenses of providing investment advisory
services to the Portfolios, including the fees of the Advisers of each
Portfolio.
Note 3 Administrative Fees
The Trust has entered into an administrative agreement with Chase Global
Funds Services Company ("Chase Global"), a corporate affiliate of Chase,
pursuant to which Chase Global provides certain fund accounting, compliance and
administrative services to the Trust. For such services, Chase Global receives
compensation at the annual rate of 0.0525 of 1% of the total Trust assets, plus
$25,000 for each Portfolio, until the total Trust assets reach $2.0 billion,
and when the total Trust assets exceed $2.0 billion Chase Global receives:
0.0425 of 1% of the next $500 million of the total Trust assets; 0.035 of 1% of
the next $2.0 billion of the total Trust assets; 0.025 of 1% of the next $1.0
billion of the total Trust assets; 0.015 of 1% of the next $2.5 billion of the
total Trust assets; and 0.01 of 1% of the total Trust assets in excess of $8.0
billion; except that the annual fee payable to Chase Global with respect to any
Portfolio which commences operation after July 1, 1997 and whose assets do not
exceed $200 million shall be computed at the rate of 0.0525 of 1% of the
Portfolio's total assets plus $25,000. Certain officers of the Trust are also
officers of Chase Global.
Note 4 Custody Fees
The Trust has entered into a Custody Agreement with Chase. The Custody
Agreement provides for an annual fee based on the amount of assets under
custody plus transaction charges. Chase serves as custodian of the Trust's
portfolio securities and other assets. Under the terms of the Custody Agreement
between the Trust and Chase, Chase maintains and deposits in separate accounts,
cash, securities and other assets of the Portfolios. Chase is also required,
upon the order of the Trust, to deliver securities held by Chase, and to make
payments for securities purchased by the Trust. Chase has also entered into
sub-custodian agreements with a number of foreign banks and clearing agencies,
pursuant to which portfolio securities purchased outside the United States are
maintained in the custody of these entities.
117
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1998
Note 5 Distribution Plan
The Trust has entered into distribution agreements with the Manager and
Equitable Distributors, Inc. ("EDI"), an indirect wholly-owned subsidiary of
Equitable (collectively, the "Distributors"), pursuant to which the
Distributors will serve as the principal underwriters of the Class IA and Class
IB shares of the Trust. Class IB shares are subject to distribution fees
imposed pursuant to a distribution plan ("Distribution Plan") adopted pursuant
to Rule 12b-1 under the 1940 Act. The Distribution Plan provides that each
Distributor will be entitled to receive a maximum distribution fee at the
annual rate of 0.50% of the average net assets attributable to the Trust's
Class IB shares. The distribution agreements, however, limit payments for
services provided under the Distribution Plan to an annual rate of 0.25% of the
average net assets attributable to the Trust's Class IB shares. The Trust's
Class IA shares are not subject to such fees.
Note 6 Expense Limitation
In the interest of limiting expenses of the Portfolios, the Manager has
entered into an expense limitation agreement with the Trust, with respect to
each Portfolio ("Expense Limitation Agreement"), pursuant to which the Manager
has agreed to waive or limit its fees and to assume other expenses so that the
total annual operating expenses (excluding the 0.25% annual fee under the
Trust's Class IB Distribution Plan) of each Portfolio are limited to:
<TABLE>
<CAPTION>
<S> <C>
0.30% OF AVERAGE DAILY NET ASSETS OF THE
BT Equity 500 Index Portfolio
0.35% OF AVERAGE DAILY NET ASSETS OF THE
BT Small Company Index Portfolio
0.55% OF AVERAGE DAILY NET ASSETS OF THE
BT International Equity Index Portfolio
JPM Core Bond Portfolio
0.60% OF AVERAGE DAILY NET ASSETS OF THE
Merrill Lynch Basic Value Equity Portfolio
MFS Emerging Growth Companies Portfolio
MFS Research Portfolio
EQ/Putnam Growth & Income Value Portfolio
EQ/Putnam Investors Growth Portfolio
T. Rowe Price Equity Income Portfolio
MFS Growth with Income Portfolio
0.65% OF AVERAGE DAILY NET ASSETS OF THE
EQ/Putnam Balanced Portfolio
Lazard Large Cap Value Portfolio
0.70% OF AVERAGE DAILY NET ASSETS OF THE
EQ/Evergreen Foundation Portfolio
0.75% OF AVERAGE DAILY NET ASSETS OF THE
Warburg Pincus Small Company Value Portfolio
0.80% OF AVERAGE DAILY NET ASSETS OF THE
EQ/Evergreen Portfolio
0.95% OF AVERAGE DAILY NET ASSETS OF THE
Merrill Lynch World Strategy Portfolio
EQ/Putnam International Equity Portfolio
T. Rowe Price International Stock Portfolio
Lazard Small Cap Value Portfolio
1.50% OF AVERAGE DAILY NET ASSETS OF THE
Morgan Stanley Emerging Markets Equity Portfolio
</TABLE>
118
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
December 31, 1998
Each Portfolio may at a later date reimburse to the Manager the management
fees waived or other expenses assumed and paid for by the Manager pursuant to
the Expense Limitation Agreement within the prior five fiscal years provided
such Portfolio has reached a sufficient asset size to permit such reimbursement
to be made without causing the total annual expense ratio of each Portfolio to
exceed the percentage limits mentioned above. Consequently, no reimbursement by
a Portfolio will be made unless: (i) the Portfolio's assets exceed $100
million; (ii) the Portfolio's total annual expense ratio is less than the
respective percentages stated above; and (iii) the payment of such
reimbursement has been approved by the Trust's Board of Trustees on a quarterly
basis. At December 31, 1998, under the Expense Limitation Agreement, the total
amount reimbursable to the Manager, which includes waivers of investment
management fees and reimbursements from the Manager, was $7,062,513. The amount
recoverable from each Portfolio is as follows:
<TABLE>
<CAPTION>
PORTFOLIOS: AMOUNT
- ----------------------------------------------------------------- -----------
<S> <C>
Merrill Lynch Basic Value Equity Portfolio ................ $359,628
Merrill Lynch World Strategy Portfolio .................... 220,231
MFS Emerging Growth Companies Portfolio ................... 750,701
MFS Research Portfolio .................................... 769,765
EQ/Putnam Balanced Portfolio .............................. 307,718
EQ/Putnam Growth & Income Value Portfolio ................. 936,005
EQ/Putnam International Equity Portfolio .................. 479,814
EQ/Putnam Investors Growth Portfolio ...................... 356,501
T. Rowe Price Equity Income Portfolio ..................... 589,044
T. Rowe Price International Stock Portfolio ............... 580,455
Warburg Pincus Small Company Value Portfolio .............. 520,044
Morgan Stanley Emerging Markets Equity Portfolio .......... 302,586
BT Equity 500 Index Portfolio ............................. 232,207
BT International Equity Index Portfolio ................... 180,103
BT Small Company Index Portfolio .......................... 220,614
JPM Core Bond Portfolio ................................... 86,241
Lazard Large Cap Value Portfolio .......................... 87,559
Lazard Small Cap Value Portfolio .......................... 83,297
EQ/Evergreen Foundation Portfolio ......................... --
EQ/Evergreen Portfolio .................................... --
MFS Growth with Income Portfolio .......................... --
</TABLE>
Note 7 Trustees Deferred Compensation Plan
A deferred compensation plan for the benefit of the unaffiliated Trustees
has been adopted by the Trust. Under the deferred compensation plan, each
Trustee may defer payment of all or part of the fees payable for such Trustee's
services. Each Trustee may defer payment of such fees until their retirement as
a Trustee or until the earlier attainment of a specified age. Fees deferred
under the deferred compensation plan, together with accrued interest thereon,
will be disbursed to a participating Trustee in monthly installments over a
five to twenty year period elected by such Trustee.
119
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period .................................. $ 11.58 $ 10.00
------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................ 0.12 0.06
Net realized and unrealized gain (loss) on investments and foreign
currency transactions .............................................. 1.21 1.64
------- --------
Total from investment operations ..................................... 1.33 1.70
------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ................................. ( 0.12) ( 0.06)
Distributions from realized gains .................................... ( 0.43) ( 0.05)
Distributions in excess of realized gains ............................ -- ( 0.01)
-------- --------
Total dividends and distributions .................................... ( 0.55) ( 0.12)
-------- --------
Net asset value, end of period ........................................ $ 12.36 $ 11.58
======== ========
Total return .......................................................... 11.59% 16.99%(b)
======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..................................... $174,104 $ 49,495
Ratio of expenses to average net assets after waivers ................. 0.85% 0.85%(a)
Ratio of expenses to average net assets before
waivers (Note 6) ..................................................... 1.06% 1.89%(a)
Ratio of net investment income to average net assets
after waivers ........................................................ 1.41% 1.91%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) ............................................................. 1.20% 0.87%(a)
Portfolio turnover rate ............................................... 83% 25%
Effect of voluntary expense limitation during the
period: (Note 6)
Per share benefit to net investment income ......................... $ 0.02 $ 0.03
</TABLE>
120
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
MERRILL LYNCH WORLD STRATEGY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 10.31 $ 10.00
------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.15 0.08
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 0.55 0.39
------- --------
Total from investment operations ...................................... 0.70 0.47
------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. ( 0.04) ( 0.05)
Dividends in excess of net investment income .......................... ( 0.04) --
Distributions from realized gains ..................................... -- --
Distributions in excess of realized gains ............................. -- ( 0.11)
------- --------
Total dividends and distributions ..................................... ( 0.08) ( 0.16)
------- --------
Net asset value, end of period ......................................... $ 10.93 $ 10.31
======= ========
Total return ........................................................... 6.81% 4.70%(b)
======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $30,631 $ 18,210
Ratio of expenses to average net assets after waivers .................. 1.20% 1.20%(a)
Ratio of expenses to average net assets before
waivers (Note 6) ...................................................... 1.61% 3.05%(a)
Ratio of net investment income to average net assets after waivers ..... 1.63% 1.89%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 1.22% 0.04%(a)
Portfolio turnover rate ................................................ 115% 58%
Effect of voluntary expense limitation during the
period: (Note 6)
Per share benefit to net investment income .......................... $ 0.04 $ 0.08
</TABLE>
121
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
MFS EMERGING GROWTH COMPANIES PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
------------------------- --------------------------------------
NOVEMBER 24, 1998* MAY 1, 1997*
TO YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1997
------------------------- ------------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period .......................... $ 14.18 $ 11.92 $ 10.00
------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................ -- ( 0.03) 0.02
Net realized and unrealized gain (loss) on investments
and foreign currency transactions .......................... 1.86 4.15 2.21
------- --------- ---------
Total from investment operations ............................. 1.86 4.12 2.23
------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......................... -- -- ( 0.02)
Dividends in excess of net investment income ................. -- -- --
Distributions from realized gains ............................ -- -- ( 0.18)
Distributions in excess of realized gains .................... -- -- ( 0.11)
------- --------- ---------
Total dividends and distributions ............................ -- -- ( 0.31)
------- --------- ---------
Net asset value, end of period ................................ $ 16.04 $ 16.04 $ 11.92
======= ========= =========
Total return .................................................. 13.12%(b) 34.57% 22.42%(b)
========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............................. $5,978 $ 461,307 $ 99,317
Ratio of expenses to average net assets after waivers ......... 0.60%(a)(1) 0.85%(1) 0.85%(a)
Ratio of expenses to average net assets before waivers
(Note 6) ..................................................... 0.79%(a)(1) 1.04%(1) 1.82%(a)
Ratio of net investment income to average net assets after
waivers ...................................................... (0.05)%(a)(1) (0.30)%(1) 0.61%(a)
Ratio of net investment income to average net assets before
waivers (Note 6) ............................................. ( 0.24)%(a)(1) ( 0.49)%(1) ( 0.36)%(a)
Portfolio turnover rate ....................................... 79% 79% 116%
Effect of voluntary expense limitation during the period:
(Note 6)
Per share benefit to net investment income ................. $ -- $ 0.02 $ 0.04
</TABLE>
122
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
MFS RESEARCH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 11.48 $ 10.00
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.04 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 2.73 1.58
------- ---------
Total from investment operations ...................................... 2.77 1.60
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. (0.04) ( 0.02)
Dividends in excess of net investment income .......................... -- --
Distributions from realized gains ..................................... -- ( 0.01)
Distributions in excess of realized gains ............................. -- ( 0.09)
-------- ---------
Total dividends and distributions ..................................... (0.04) ( 0.12)
-------- ---------
Net asset value, end of period ......................................... $ 14.21 $ 11.48
======== =========
Total return ........................................................... 24.11% 16.07%(b)
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $407,619 $ 114,754
Ratio of expenses to average net assets after waivers .................. 0.85% 0.85%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.05% 1.78%(a)
Ratio of net investment income to average net assets after waivers ..... 0.44% 0.65%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 0.24% ( 0.28)%(a)
Portfolio turnover rate ................................................ 73% 51%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.02 $ 0.03
</TABLE>
123
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
EQ/PUTNAM BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 11.21 $ 10.00
------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.25 0.14
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 1.08 1.30
------- --------
Total from investment operations ...................................... 1.33 1.44
------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. ( 0.23) ( 0.13)
Dividends in excess of net investment income .......................... -- ( 0.01)
Distributions from realized gains ..................................... ( 0.15) ( 0.09)
------- --------
Total dividends and distributions ..................................... ( 0.38) ( 0.23)
------- --------
Net asset value, end of period ......................................... $ 12.16 $ 11.21
======= ========
Total return ........................................................... 11.92% 14.38%(b)
======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $75,977 $ 25,854
Ratio of expenses to average net assets after waivers .................. 0.90% 0.90%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.25% 2.55%(a)
Ratio of net investment income to average net assets after waivers ..... 2.88% 3.19%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 2.53% 1.54%(a)
Portfolio turnover rate ................................................ 135% 117%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.03 $ 0.07
</TABLE>
124
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 11.52 $ 10.00
------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.11 0.06
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 1.35 1.56
------- --------
Total from investment operations ...................................... 1.46 1.62
------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. ( 0.11) ( 0.06)
Dividends in excess of net investment income .......................... -- --
Distributions from realized gains ..................................... -- ( 0.01)
Distributions in excess of realized gains ............................. ( 0.10) ( 0.03)
-------- --------
Total dividends and distributions ..................................... ( 0.21) ( 0.10)
-------- --------
Net asset value, end of period ......................................... $ 12.77 $ 11.52
======== ========
Total return ........................................................... 12.75% 16.23%(b)
======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $460,744 $150,260
Ratio of expenses to average net assets after waivers .................. 0.85% 0.85%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.04% 1.75%(a)
Ratio of net investment income to average net assets after waivers ..... 1.30% 1.67%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 1.11% 0.77%(a)
Portfolio turnover rate ................................................ 74% 61%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.02 $ 0.03
</TABLE>
125
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 10.89 $ 10.00
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.05 0.03
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 2.07 0.93
------- ---------
Total from investment operations ...................................... 2.12 0.96
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. -- ( 0.02)
Distributions from realized gains ..................................... -- ( 0.01)
Distributions in excess of realized gains ............................. -- ( 0.04)
-------- ---------
Total dividends and distributions ..................................... -- ( 0.07)
-------- ---------
Net asset value, end of period ......................................... $ 13.01 $ 10.89
======== =========
Total return ........................................................... 19.51% 9.58%(b)
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $143,721 $ 55,178
Ratio of expenses to average net assets after waivers .................. 1.20% 1.20%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.46% 2.53%(a)
Ratio of net investment income to average net assets after waivers ..... 0.64% 0.74%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 0.38% ( 0.59)%(a)
Portfolio turnover rate ................................................ 94% 43%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.02 $ 0.05
</TABLE>
126
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 12.33 $ 10.00
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.01 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 4.46 2.45
------- ---------
Total from investment operations ...................................... 4.47 2.47
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. ( 0.01) ( 0.03)
Distributions from realized gains ..................................... -- ( 0.04)
Distributions in excess of realized gains ............................. -- ( 0.07)
------- ---------
Total dividends and distributions ..................................... ( 0.01) ( 0.14)
------- ---------
Net asset value, end of period ......................................... $ 16.79 $ 12.33
======= =========
Total return ........................................................... 36.27% 24.70%(b)
======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $175,015 $ 39,695
Ratio of expenses to average net assets after waivers .................. 0.85% 0.85%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.09% 2.13%(a)
Ratio of net investment income to average net assets after waivers ..... 0.14% 0.58%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. ( 0.10)% ( 0.70)%(a)
Portfolio turnover rate ................................................ 64% 47%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.02 $ 0.05
</TABLE>
127
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
T. ROWE PRICE EQUITY INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
---------------------- --------------------------------------
NOVEMBER 24, 1998* MAY 1, 1997*
TO YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1997
---------------------- ------------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period .......................... $ 13.22 $ 12.08 $ 10.00
---------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................ 0.06 0.22 0.10
Net realized and unrealized gain (loss) on investments
and foreign currency transactions .......................... ( 0.09)+ 0.87 2.11
---------- -------- --------
Total from investment operations ............................. ( 0.03) 1.09 2.21
---------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ......................... ( 0.24) ( 0.22) ( 0.09)
Distributions from realized gains ............................ ( 0.28) ( 0.28) ( 0.04)
---------- -------- --------
Total dividends and distributions ............................ ( 0.52) ( 0.50) ( 0.13)
---------- -------- --------
Net asset value, end of period ................................ $ 12.67 $ 12.67 $ 12.08
========== ======== ========
Total return .................................................. ( 2.21)%(b) 9.11% 22.11%(b)
========== ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............................. $ 2,415 $242,001 $ 99,947
Ratio of expenses to average net assets after waivers ......... 0.60%(a)(1) 0.85%(1) 0.85%(a)
Ratio of expenses to average net assets before waivers
(Note 6) ..................................................... 0.79%(a)(1) 1.04%(1) 1.74%(a)
Ratio of net investment income to average net assets after
waivers ...................................................... 2.45%(a)(1) 2.20%(1) 2.49%(a)
Ratio of net investment income to average net assets before
waivers (Note 6) ............................................. 2.26%(a)(1) 2.01%(1) 1.60%(a)
Portfolio turnover rate ....................................... 17% 17% 9%
Effect of voluntary expense limitation during the period:
(Note 6)
Per share benefit to net investment income ................. $ 0.03 $ 0.02 $ 0.03
</TABLE>
128
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
MAY 1, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................... $ 9.85 $ 10.00
------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................. 0.06 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions ............................................... 1.28 ( 0.17)
------- ---------
Total from investment operations ...................................... 1.34 ( 0.15)
------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................. ( 0.07) --
Dividends in excess of net investment income .......................... ( 0.02) --
Distributions in excess of realized gains ............................. -- --
-------- ---------
Total dividends and distributions ..................................... ( 0.09) --
-------- ---------
Net asset value, end of period ......................................... $ 11.10 $ 9.85
======== =========
Total return ........................................................... 13.68% ( 1.49)%(b)
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................... $134,653 $ 69,572
Ratio of expenses to average net assets after waivers .................. 1.20% 1.20%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........ 1.40% 2.56%(a)
Ratio of net investment income to average net assets after waivers ..... 0.67% 0.45%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) .............................................................. 0.47% ( 0.91)%(a)
Portfolio turnover rate ................................................ 22% 17%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................... $ 0.02 $ 0.05
</TABLE>
129
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IA CLASS IB
---------------------- --------------------------------------
NOVEMBER 24, 1998* MAY 1, 1997*
TO YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1997
---------------------- ------------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period .......................... $ 10.40 $ 11.85 $ 10.00
---------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................ 0.03 0.05 0.01
Net realized and unrealized gain (loss) on investments
and foreign currency transactions .......................... 0.23 + ( 1.24) 1.90
---------- --------- ---------
Total from investment operations ............................. 0.26 ( 1.19) 1.91
---------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ......................... ( 0.06) ( 0.04) ( 0.01)
Distributions in excess of realized gains .................... -- -- ( 0.05)
Return of capital distributions .............................. ( 0.01) ( 0.01) --
---------- --------- ---------
Total dividends and distributions ............................ ( 0.07) ( 0.05) ( 0.06)
---------- --------- ---------
Net asset value, end of period ................................ $ 10.59 $ 10.61 $ 11.85
========== ========= =========
Total return .................................................. 2.63%(b) (10.02)% 19.15%(b)
========== ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ............................. $ 747 $ 166,746 $ 120,880
Ratio of expenses to average net assets after waivers ......... 0.75%(a)(1) 1.00%(1) 1.00%(a)
Ratio of expenses to average net assets before waivers
(Note 6) ..................................................... 0.92%(a)(1) 1.17%(1) 1.70%(a)
Ratio of net investment income to average net assets after
waivers ...................................................... 0.72%(a)(1) 0.47%(1) 0.26%(a)
Ratio of net investment income to average net assets before
waivers (Note 6) ............................................. 0.55%(a)(1) 0.30%(1) ( 0.44)%(a)
Portfolio turnover rate ....................................... 111% 111% 44%
Effect of voluntary expense limitation during the period:
(Note 6)
Per share benefit to net investment income ................. $ 0.17 $ 0.02 $ 0.03
</TABLE>
130
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
--------------------------------------
AUGUST 20, 1997*
YEAR ENDED TO
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ...................................... $ 7.96 $ 10.00
--------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................................................... 0.03 0.04
Net realized and unrealized (loss) on investments and foreign currency
transactions ........................................................... (2.18) (2.06)
---------- ----------
Total from investment operations ......................................... (2.15) (2.02)
---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ..................................... (0.02) (0.02)
---------- ----------
Total dividends and distributions ........................................ (0.02) (0.02)
---------- ----------
Net asset value, end of period ............................................ $ 5.79 $ 7.96
========== ==========
Total return .............................................................. (27.10)% (20.16)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......................................... $ 41,359 $ 21,433
Ratio of expenses to average net assets after waivers ..................... 1.81% 1.75%(a)
Ratio of expenses to average net assets before waivers (Note 6) ........... 2.63% 2.61%(a)
Ratio of net investment income to average net assets after waivers ........ 0.73% 1.96%(a)
Ratio of net investment income to average net assets before waivers
(Note 6) ................................................................. (0.09)% 1.10%(a)
Portfolio turnover rate ................................................... 114% 25%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income ............................. $ 0.03 $ 0.02
</TABLE>
131
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
BT EQUITY 500 INDEX PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IB
------------------
YEAR ENDED
DECEMBER 31, 1998
------------------
<S> <C>
Net asset value, beginning of period ................................................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................................. 0.06
Net realized and unrealized gain on investments and foreign currency transactions ..... 2.45
--------
Total from investment operations ...................................................... 2.51
--------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................................. (0.06)
--------
Total dividends and distributions ..................................................... (0.06)
--------
Net asset value, end of period ......................................................... $ 12.45
========
Total return ........................................................................... 25.14%
========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $224,247
Ratio of expenses to average net assets after waivers .................................. 0.55%
Ratio of expenses to average net assets before waivers (Note 6) ........................ 0.83%
Ratio of net investment income to average net assets after waivers ..................... 1.22%
Ratio of net investment income to average net assets before waivers (Note 6) ........... 0.94%
Portfolio turnover rate ................................................................ 2%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................................... $ 0.01
</TABLE>
132
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
BT INTERNATIONAL EQUITY INDEX PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IA CLASS IB
---------------------- ------------------
NOVEMBER 24, 1998*
TO YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1998
---------------------- ------------------
<S> <C> <C>
Net asset value, beginning of period ................................. $ 11.67 $ 10.00
---------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................................... 0.03 0.08
Net realized and unrealized gain on investments and foreign currency
transactions ...................................................... 0.31 1.92
---------- --------
Total from investment operations .................................... 0.34 2.00
---------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ................................ ( 0.17) ( 0.15)
---------- --------
Total dividends and distributions ................................... ( 0.17) ( 0.15)
---------- --------
Net asset value, end of period ....................................... $ 11.84 $ 11.85
========== ========
Total return ......................................................... 2.94%(b) 20.07%
========== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .................................... $ 735 $ 48,075
Ratio of expenses to average net assets after waivers ................ 0.59%(a)(1) 0.84%(1)
Ratio of expenses to average net assets before waivers (Note 6) ...... 1.24%(a)(1) 1.49%(1)
Ratio of net investment income to average net assets after waivers ... 1.36%(a)(1) 1.11%(1)
Ratio of net investment income to average net assets before waivers
(Note 6) ............................................................ 0.71%(a)(1) 0.46%(1)
Portfolio turnover rate .............................................. 3% 3%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income ........................ $ 0.26 $ 0.05
</TABLE>
133
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
BT SMALL COMPANY INDEX PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IB
------------------
YEAR ENDED
DECEMBER 31, 1998
------------------
<S> <C>
Net asset value, beginning of period ..................................................... $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................................... 0.07
Net realized and unrealized (loss) on investments and foreign currency transactions ..... (0.30)
-------
Total from investment operations ........................................................ (0.23)
-------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................................... (0.07)
Distributions from realized gains ....................................................... (0.13)
Distributions in excess of realized gains ............................................... (0.01)
-------
Total dividends and distributions ....................................................... (0.21)
-------
Net asset value, end of period ........................................................... $ 9.56
=======
Total return ............................................................................. (2.27)%
=======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........................................................ $32,609
Ratio of expenses to average net assets after waivers .................................... 0.60%
Ratio of expenses to average net assets before waivers (Note 6) .......................... 1.81%
Ratio of net investment income to average net assets after waivers ....................... 1.18%
Ratio of net investment income to average net assets before waivers (Note 6) ............. (0.03)%
Portfolio turnover rate .................................................................. 35%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income ............................................ $ 0.07
</TABLE>
134
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
JPM CORE BOND PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IB
------------------
YEAR ENDED
DECEMBER 31, 1998
------------------
<S> <C>
Net asset value, beginning of period ................................................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................................. 0.21
Net realized and unrealized gain on investments and foreign currency transactions ..... 0.70
--------
Total from investment operations ...................................................... 0.91
--------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................................. (0.21)
Dividends in excess of net investment income .......................................... (0.01)
Distributions from realized gains ..................................................... (0.11)
Distributions in excess of realized gains ............................................. (0.01)
--------
Total dividends and distributions ..................................................... (0.34)
--------
Net asset value, end of period ......................................................... $ 10.57
========
Total return ........................................................................... 9.02%
========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $103,326
Ratio of expenses to average net assets after waivers .................................. 0.80%
Ratio of expenses to average net assets before waivers (Note 6) ........................ 1.03%
Ratio of net investment income to average net assets after waivers ..................... 4.95%
Ratio of net investment income to average net assets before waivers (Note 6) ........... 4.72%
Portfolio turnover rate ................................................................ 428%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .......................................... $ 0.01
</TABLE>
135
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
LAZARD LARGE CAP VALUE PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IB
------------------
YEAR ENDED
DECEMBER 31, 1998
------------------
<S> <C>
Net asset value, beginning of period ............................................. $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................................... 0.06
Net realized and unrealized gain (loss) on investments and foreign currency
transactions .................................................................. 1.94
-------
Total from investment operations ................................................ 2.00
-------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................................ (0.06)
-------
Total dividends and distributions ............................................... (0.06)
-------
Net asset value, end of period ................................................... $ 11.94
=======
Total return ..................................................................... 20.01%
=======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ................................................ $74,588
Ratio of expenses to average net assets after waivers ............................ 0.90%
Ratio of expenses to average net assets before waivers (Note 6) .................. 1.20%
Ratio of net investment income to average net assets after waivers ............... 1.19%
Ratio of net investment income to average net assets before waivers (Note 6) ..... 0.89%
Portfolio turnover rate .......................................................... 37%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income .................................... $ 0.02
</TABLE>
136
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Concluded)
LAZARD SMALL CAP VALUE PORTFOLIO:**
<TABLE>
<CAPTION>
CLASS IB
------------------
YEAR ENDED
DECEMBER 31, 1998
------------------
<S> <C>
Net asset value, beginning of period ..................................................... $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................................... 0.02
Net realized and unrealized (loss) on investments and foreign currency transactions ..... (0.72)
-------
Total from investment operations ........................................................ (0.70)
-------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................................... (0.03)
-------
Total dividends and distributions ....................................................... (0.03)
-------
Net asset value, end of period ........................................................... $ 9.27
=======
Total return ............................................................................. (7.03)%
=======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........................................................ $51,046
Ratio of expenses to average net assets after waivers .................................... 1.20%
Ratio of expenses to average net assets before waivers (Note 6) .......................... 1.54%
Ratio of net investment income to average net assets after waivers ....................... 0.52%
Ratio of net investment income to average net assets before waivers (Note 6) ............. 0.18%
Portfolio turnover rate .................................................................. 21%
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income ............................................ $ 0.02
</TABLE>
- ----------
* Commencement of Operations of respective class
** Portfolios that received initial capital on December 31, 1997 commenced
operations on January 1, 1998.
+ The amount shown for a share outstanding throughout the period does not
accord with the aggregate net gains on investments for that period
because of the timing of sales and repurchases of the Portfolio shares in
relation to fluctuating market value of the investments of the Portfolio.
(a) Annualized
(b) Total return is not annualized.
(1) Reflects overall fund ratios for investment income and non-class specific
expense.
137
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees
and Shareholders of
EQ Advisors Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of each of the
portfolios constituting EQ Advisors Trust (the "Fund") at December 31, 1998,
and the results of each of their operations, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at December 31, 1998 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 17, 1999
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For the year ended December 31, 1998, the percentage of dividends paid that
qualify for the 70% dividends received deduction for corporate shareholders,
foreign taxes which are expected to be passed through to shareholders as
foreign tax credits, gross income derived from sources within foreign countries
and finally long-term capital gain dividends for the purpose of the dividend
paid deduction on its federal income tax return were as follows:
<TABLE>
<CAPTION>
70% DIVIDEND FOREIGN TAX FOREIGN LONG TERM
PORTFOLIOS: RECEIVED DEDUCTION CREDITS SOURCE INCOME CAPITAL GAIN--20%
- -------------------------------------------- -------------------- ------------- --------------- ------------------
<S> <C> <C> <C> <C>
Merrill Lynch Basic Value Equity
Portfolio ................................. 21.91 -- -- $ 562,400
Merrill Lynch World Strategy Portfolio ..... 40.61 -- -- --
MFS Research Portfolio ..................... 99.70 -- -- --
EQ Putnam Balanced Portfolio ............... 25.43 -- -- 238,196
EQ Putnam Growth & Income Value
Portfolio ................................. 53.82 -- -- 587,706
EQ Putnam International Portfolio .......... -- $191,141 $1,490,222 --
EQ Putnam Investors Growth Portfolio 96.63 -- -- --
T. Rowe Price Equity Income Portfolio ...... 58.37 -- -- 1,554,843
T. Rowe Price International Portfolio ...... -- 201,638 1,848,403 --
Warburg Pincus Small Company Value
Portfolio ................................. 99.50 -- -- --
Morgan Stanley Emerging Markets
Equity Portfolio .......................... 20.32 29,792 633,502 --
BT Equity 500 Index Portfolio .............. 81.58 -- -- --
BT International Equity Index Portfolio -- 59,292 454,759 --
BT Small Company Index Portfolio ........... 23.28 -- -- 102,113
JPM Core Bond Portfolio .................... -- -- -- 271,660
Lazard Large Cap Value Portfolio ........... 100.00 -- -- --
Lazard Small Cap Value Portfolio ........... 100.00 -- -- --
</TABLE>
