REGISTRATION NOs. 333-17361
811-07961
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
-----
PRE-EFFECTIVE AMENDMENT NO.
----- -----
POST-EFFECTIVE AMENDMENT NO. 1 X
----- -----
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
----- -----
AMENDMENT NO. 3 X
----- -----
MASON STREET FUNDS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
720 EAST WISCONSIN AVENUE
MILWAUKEE, WISCONSIN 53202
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(414) 271-1444
(REGISTRANT'S TELEPHONE NUMBER)
MERRILL C. LUNDBERG
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
LAW DEPARTMENT
720 EAST WISCONSIN AVENUE
MILWAUKEE, WISCONSIN 53202
(NAME AND ADDRESS OF AGENT FOR SERVICE)
REGISTRANT HAS ELECTED TO REGISTER AN INDEFINITE NUMBER OF SHARES OF ITS COMMON
STOCK UNDER THE SECURITIES ACT OF 1933 PURSUANT TO RULE 24F-2 UNDER THE
INVESTMENT COMPANY ACT OF 1940.
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
[ ] IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (b)
[X] ON SEPTEMBER 17, 1997 PURSUANT TO PARAGRAPH (b)
[ ] 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(1)
[ ] ON (DATE) PURSUANT TO PARAGRAPH (a)(1)
[ ] 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(2)
[ ] ON (DATE) PURSUANT TO PARAGRAPH (a)(2) OF RULE 485
[ ] THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE DATE FOR
A PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.
<PAGE>
MASON STREET FUNDS, INC.
CROSS REFERENCE SHEET
Cross reference sheet showing location in Prospectus of information
required by the Items in Part A of Form N-1A.
ITEM NUMBER HEADING IN PROSPECTUS
----------- ---------------------
1 Cover Page
2 Summary
3 *
4 The Funds In Detail, Other Information
5 Management Of the Funds
5A *
6 Other Information, Distributions And Taxes
7 Buying And Selling Fund Shares, Shareholders Guide
8 Buying And Selling Fund Shares, Shareholders Guide
9 *
* Indicates inapplicable or negative
<PAGE>
(LOGO)
MASON STREET FUNDS/SM
SUPPLEMENT DATED SEPTEMBER 17, 1997
TO THE PROSPECTUS DATED MARCH 31, 1997
THIS SUPPLEMENT IS INTENDED TO UPDATE THE PROSPECTUS FOR
MASON STREET FUNDS/SM DATED MARCH 31, 1997
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
The following table sets forth certain unaudited financial information from each Fund's inception (March 31, 1997) through July 31,
1997, showing per share amounts except for the Ratios and Supplemental Data.
<CAPTION>
Aggressive Growth International Growth Growth and Income Index 500
- -----------------------------------------------------------------------------------------------------------------------------------
Class A Class B Class A Class B Class A Class B Class A Class B Class A Class B
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment
income or (loss) (0.03)+ (0.06)+ 0.14+ 0.12+ 0.01+ (0.02)+ 0.02+ (0.01)+ 0.04+ 0.01+
Net realized and
unrealized gain/(loss) 3.23 3.23 0.51 0.51 2.54 2.54 2.57 2.57 2.58 2.58
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations 3.20 3.17 0.65 0.63 2.55 2.52 2.59 2.56 2.62 2.59
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions from net
realized gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Change in net
asset value 3.20 3.17 0.65 0.63 2.55 2.52 2.59 2.56 2.62 2.59
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $13.20 $13.17 $10.65 $10.63 $12.55 $12.52 $12.59 $12.56 $12.62 $12.59
===================================================================================================================================
Total Return* 32.00% 31.70% 6.50% 6.30% 25.50% 25.20% 25.90% 25.60% 26.20% 25.90%
===================================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $33,956 $365 $27,515 $378 $32,258 $175 $32,153 $210 $32,860 $976
===================================================================================================================================
Ratio of expenses to
average net assets** 1.30% 1.95% 1.65% 2.30% 1.30% 1.95% 1.20% 1.85% 0.85% 1.50%
===================================================================================================================================
Ratio of expenses
without waivers of
expenses to average
net assets** 1.68% 2.33% 2.39% 3.04% 1.70% 2.35% 1.55% 2.20% 1.47% 2.12%
===================================================================================================================================
Ratio of net investment
income (loss) to average
net assets** (0.84)% (1.59)% 4.05% 2.97% 0.22% (0.59)% 0.47% (0.35)% 1.13% 0.37%
===================================================================================================================================
Portfolio turnover rate 18.14% 18.14% 0.00% 0.00% 4.44% 4.44% 43.65% 43.65% 1.19% 1.19%
===================================================================================================================================
Average brokerage
commission rate ($) $0.0522 $0.0522 $0.0029 $0.0029 $0.0487 $0.0487 $0.0450 $0.0450 $0.0253 $0.0253
===================================================================================================================================
<FN>
+ Calculated based on average shares outstanding.
* Reflects total return for the period; not annualized. Includes deductions for management and other Fund expenses. Does not
include sales charges.
** Annualized.
<PAGE>
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
The following table sets forth certain unaudited financial information from each Fund's inception (March 31, 1997) through July 31,
1997, showing per share amounts except for the Ratios and Supplemental Data.
<CAPTION>
Asset Allocation High Yield Bond Municipal Bond Select Bond
- -------------------------------------------------------------------------------------------------------------
Class A Class B Class A Class B Class A Class B Class A Class B
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
- -------------------------------------------------------------------------------------------------------------
Net investment
income 0.10+ 0.08+ 0.28 0.25 0.15 0.12 0.21 0.19
Net realized and
unrealized gain 1.77 1.77 0.98 0.98 0.58 0.58 0.57 0.57
- -------------------------------------------------------------------------------------------------------------
Total from investment
operations 1.87 1.85 1.26 1.23 0.73 0.70 0.78 0.76
- -------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS:
Dividends from net
investment income 0.00 0.00 (0.28) (0.25) (0.15) (0.12) (0.21) (0.19)
Distributions from net
realized gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 (0.28) (0.25) (0.15) (0.12) (0.21) (0.19)
- -------------------------------------------------------------------------------------------------------------
Change in net
asset value 1.87 1.85 0.98 0.98 0.58 0.58 0.57 0.57
- -------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.87 $11.85 $10.98 $10.98 $10.58 $10.58 $10.57 $10.57
=============================================================================================================
Total Return* 18.70% 18.50% 12.72% 12.44% 7.37% 7.07% 7.91% 7.65%
=============================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $30,060 $410 $28,604 $145 $26,967 $256 $27,105 $74
=============================================================================================================
Ratio of expenses to
average net assets** 1.35% 2.00% 1.30% 1.95% 0.85% 1.50% 0.85% 1.50%
=============================================================================================================
Ratio of expenses
without waivers of
expenses to average
net assets** 1.67% 2.32% 1.67% 2.30% 1.22% 1.86% 1.23% 1.88%
=============================================================================================================
Ratio of net investment
income to average
net assets** 2.86% 2.04% 8.05% 7.08% 4.51% 3.81% 6.34% 5.74%
=============================================================================================================
Portfolio turnover rate 28.60% 28.60% 77.40% 77.40% 108.87% 108.87% 130.39% 130.39%
=============================================================================================================
Average brokerage
commission rate ($) $0.0656 $0.0656 - - - - - -
=============================================================================================================
<FN>
+ Calculated based on average shares outstanding.
* Reflects total return for the period; not annualized. Includes deductions for management and other Fund expenses.
Does not include sales charges.
** Annualized.
</TABLE>
<PAGE>
PERFORMANCE OF THE FUNDS
The figures set forth below reflect each Fund's total return for the period from
March 31, 1997 to July 31, 1997. These figures are based on the actual
performance of the Funds. The Funds' investment advisor and its affiliates have
voluntarily agreed to limit certain Fund expenses. Without this agreement total
return figures would have been lower. Past performance is not necessarily
indicative and is no guarantee of future performance of the Funds.
<TABLE>
<CAPTION>
Class A Shares Class B Shares
- -----------------------------------------------------------------------------------------------------------
With Without Assuming Assuming
Sales Charge Sales Charge<F1> Redemption No Redemption
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGGRESSIVE GROWTH STOCK FUND 25.71% 32.00% 26.70% 31.70%
INTERNATIONAL EQUITY FUND 1.43% 6.50% 1.30% 6.30%
GROWTH STOCK FUND 19.52% 25.50% 20.20% 25.20%
GROWTH AND INCOME STOCK FUND 19.90% 25.90% 20.60% 25.60%
INDEX 500 STOCK FUND 20.19% 26.20% 20.90% 25.90%
ASSET ALLOCATION FUND 13.05% 18.70% 13.50% 18.50%
HIGH YIELD BOND FUND 7.35% 12.72% 7.44% 12.44%
MUNICIPAL BOND FUND 2.26% 7.37% 2.07% 7.07%
SELECT BOND FUND 2.77% 7.91% 2.65% 7.65%
<FN>
<F1> Certain persons may purchase Class A shares that are not subject to the Class A initial sales charge and certain other persons
may purchase Class A shares subject to less than the maximum initial sales charge (see "When will the Sales Charge on Class A
Shares be Reduced or Waived?" on p. 22 of the Prospectus).
</TABLE>
PRIOR PERFORMANCE OF SIMILAR FUNDS
This Supplement also updates the investment performance related to the six
mutual funds (the "Portfolios") sponsored by The Northwestern Mutual Life
Insurance Company which served as models for six of the Mason Street FundsSM.
The Portfolios are offered in connection with variable annuity and life
insurance products issued by Northwestern Mutual Life. The performance shown on
p. 4 is not the actual performance of the Funds offered by the Prospectus and is
only intended to show the investment advisor's track record when managing
comparable mutual funds. While the Funds offered by the Prospectus are intended
to be managed in substantially the same manner as the Portfolios, the
performance figures shown on p. 4 are not necessarily indicative of future
performance and are not intended as a projection or forecast of such future
performance. For additional information on past performance of the Portfolios,
please see pp. 8-9 in the Prospectus.
The Prospectus is amended as follows:
ALL INFORMATION AND THE FOUR TABLES ON P. 9 ARE DELETED AND THE FOLLOWING
INSERTED:
The following four tables show the average annualized total returns for the
Series Fund Portfolios and predecessor funds for the one-, three-, five- and
ten-year (or life of the Portfolio, if shorter) periods ended July 31, 1997.
These figures are based on the actual gross investment performance of the
Portfolios. From the gross investment performance figures, the maximum Total
Fund Operating Expenses shown in the fee table on p. 6 of the Prospectus are
deducted to arrive at the net return. The first table for each Class reflects a
deduction for the maximum applicable sales charge, while the second table for
each Class reflects no deduction for sales charges. Performance figures will be
lower when sales charges are taken into account.
<PAGE>
ASSUMING CLASS A SHARES TOTAL FUND OPERATING EXPENSES AND
THE MAXIMUM INITIAL SALES CHARGE APPLICABLE TO CLASS A SHARES
10 Years or
Portfolio (Inception Date) 1 Year 3 Years 5 Years Since Inception
- -------------------------------------------------------------------------------
AGGRESSIVE GROWTH STOCK
(November 30, 1990*) 17.88% 22.51% 20.43% 21.01%
INTERNATIONAL EQUITY
(April 30, 1993*) 25.83% 14.29% N/A 15.77%
GROWTH STOCK
(May 3, 1994) 36.85% 23.31% N/A 21.68%
GROWTH AND INCOME STOCK
(May 3, 1994) 43.45% 23.55% N/A 21.98%
HIGH YIELD BOND
(May 3, 1994) 18.18% 14.11% N/A 13.48%
SELECT BOND
(June 26, 1984) 5.83% 6.93% 6.14% 8.28%
ASSUMING CLASS A SHARES TOTAL FUND OPERATING EXPENSES
WITH NO INITIAL SALES CHARGE<F1>
10 Years or
Portfolio (Inception Date) 1 Year 3 Years 5 Years Since Inception
- -------------------------------------------------------------------------------
AGGRESSIVE GROWTH STOCK
(November 30, 1990*) 23.76% 24.52% 21.61% 21.90%
INTERNATIONAL EQUITY
(April 30, 1993*) 32.10% 16.16% N/A 17.10%
GROWTH STOCK
(May 3, 1994) 43.68% 25.33% N/A 23.52%
GROWTH AND INCOME STOCK
(May 3, 1994) 50.60% 25.57% N/A 23.82%
HIGH YIELD BOND
(May 3, 1994) 24.07% 15.98% N/A 15.20%
SELECT BOND
(June 26, 1984) 11.11% 8.68% 7.18% 8.81%
<F1> Certain persons may purchase Class A shares that are not subject to the
Class A initial sales charge and certain other persons may purchase Class A
shares subject to less than the maximum initial sales charge (see "When
will the Sales Charge on Class A Shares be Reduced or Waived?" on p. 22 of
the Prospectus).
ASSUMING CLASS B SHARES TOTAL FUND OPERATING EXPENSES
AND REDEMPTION AT THE END OF THE APPLICABLE TIME PERIOD
10 Years or
Portfolio (Inception Date) 1 Year 3 Years 5 Years Since Inception
- -------------------------------------------------------------------------------
AGGRESSIVE GROWTH STOCK
(November 30, 1990*) 18.00% 23.07% 20.60% 21.16%
INTERNATIONAL EQUITY
(April 30, 1993*) 26.23% 14.63% N/A 16.07%
GROWTH STOCK
(May 3, 1994) 37.65% 23.79% N/A 22.11%
GROWTH AND INCOME STOCK
(May 3, 1994) 44.70% 24.11% N/A 22.41%
HIGH YIELD BOND
(May 3, 1994) 18.15% 14.51% N/A 13.79%
SELECT BOND
(June 26, 1984) 5.38% 7.08% 6.18% 8.10%
ASSUMING CLASS B SHARES TOTAL FUND OPERATING EXPENSES
AND NO REDEMPTION AT THE END OF THE APPLICABLE TIME PERIOD
10 Years or
Portfolio (Inception Date) 1 Year 3 Years 5 Years Since Inception
- -------------------------------------------------------------------------------
AGGRESSIVE GROWTH STOCK
(November 30, 1990*) 23.00% 23.72% 20.78% 21.16%
INTERNATIONAL EQUITY
(April 30, 1993*) 31.23% 15.38% N/A 16.36%
GROWTH STOCK
(May 3, 1994) 42.65% 24.44% N/A 22.70%
GROWTH AND INCOME STOCK
(May 3, 1994) 49.70% 24.76% N/A 22.99%
HIGH YIELD BOND
(May 3, 1994) 23.15% 15.26% N/A 14.47%
SELECT BOND
(June 26, 1984) 10.38% 7.95% 6.50% 8.10%
* Includes performance of predecessor fund that was merged into the Series Fund
on May 3, 1994.
The Prospectus is also amended as follows:
THE FIRST SENTENCE OF THE THIRD FULL PARAGRAPH IN THE SECOND COLUMN ON P. 15 IS
MODIFIED TO READ AS FOLLOWS: The Select Bond Fund may invest up to 15% of its
total net assets in high yield/high risk foreign and domestic bonds and up to
15% of its total net assets in investment-grade foreign securities, consistent
with its investment objective.
MASON STREET FUNDS/SM
P.O. BOX 419419
KANSAS CITY, MO 64141-6419
1-888-MASONST (1-888-627-6678)
94-1000-50
9/97
<PAGE>
MASON STREET FUNDS, INC.
CROSS REFERENCE SHEET
Cross reference sheet showing location in Statement of Additional
Information required by the Items in Part B of Form N-1A.
Heading in Statement
Item Number of Additional Information
----------- -------------------------
10 Cover Page
11 Table of Contents
12 Not Applicable
13 Investment Policies
14 Management of MSF
15 Ownership of Shares of MSF
16 Investment Advisory Services, Distribution
Arrangements
17 Portfolio Transactions and Brokerage Allocation and
Other Practices
18 Other Information About MSF
19 Determination of Net Asset Value, Purchase and
Redemption of Shares
20 Taxes
21 Distribution Arrangements, Underwriter
22 Investment Performance
23 Report of Independent Accountants, Financial
Statements
<PAGE>
The purpose of this post-effective amendment is to fulfill Registrant's
undertaking to file a post-effective amendment with unaudited financial
statements within four to six months from the effective date of Registrant's
1933 Act Registration Statement. This post-effective amendment also adds the
financial highlights chart to and updates certain performance information in
Registrant's prospectus by adding a supplement to the currently effective
prospectus. The prospectus supplement also amends the prospectus to allow a
larger investment in foreign bonds by the Select Bond Fund. Parts A and B of
pre-effective amendment No. 2, which are amended hereby, are incorporated by
reference herein.
<PAGE>
MASON STREET FUNDS, INC
AGGRESSIVE GROWTH STOCK FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31,1997
ASSETS
Common Stocks
(cost $25,580,085)................................. $33,118,138
Money Market Investments
(cost $2,197,230).................................. 2,197,230
-----------
35,315,368
Cash................................................. 436,527
Due from Sale of Securities.......................... 338,933
Due from Sale of Fund Shares......................... 38,221
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
Dividends and Interest Receivable.................... 1,850
-----------
Total Assets....................................... 36,168,060
-----------
LIABILITIES
Due on Purchase of Securities ....................... 1,685,015
Due to Investment Advisor ........................... 72,175
Accrued Expenses .................................... 53,240
Payable to Northwestern Mutual Life ................. 37,161
-----------
Total Liabilities ................................. 1,847,591
-----------
NET ASSETS............................................. $34,320,469
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,599,783
shares outstanding)................................ $26,148,490
Undistributed Net Investment
Loss............................................... (81,580)
Undistributed Accumulated Net
Realized Gain on Investments....................... 715,506
Net Unrealized Appreciation of
Investment Securities.............................. 7,538,053
-----------
Net Assets for 2,599,783 Shares
Outstanding........................................ $34,320,469
===========
Per Share of Class A (Based on 2,572,085
Shares Issued and Outstanding):
Offering Price................................... $13.86
===========
Net Asset Value and Redemption Price............. $13.20
===========
Per Share of Class B (Based on 27,698
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price............................... $13.17
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Interest........................................... $ 34,662
Dividends(less foreign dividend tax of $241)....... 9,174
-----------
Total Income..................................... 43,836
-----------
Expenses
Management Fees.................................... 72,175
Shareholder Servicing Fees......................... 24,058
Registration Fees.................................. 16,434
Transfer Agent Fees................................ 14,511
Distribution Fees:
Class A.......................................... 9,575
Class B.......................................... 359
Administrative Fees................................ 9,623
Audit Fees......................................... 5,167
Custody Fees....................................... 3,761
Shareholder Reports................................ 2,322
Miscellaneous Expenses............................. 2,201
Organizational Costs............................... 1,348
Outside Professional Fees.......................... 982
-----------
Total Expenses................................... 162,516
-----------
Less:
Custodian Fees Paid Indirectly................. (2,358)
Other Expenses Reimbursed by Affiliates........ (34,742)
-----------
Total Net Expenses................................. 125,416
-----------
Net Investment Loss.................................. (81,580)
-----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..................... 715,506
Net Change in Unrealized Appreciation
of Investments for the Period...................... 7,538,053
-----------
Net Gain on Investments.............................. 8,253,559
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.......................... $8,171,979
===========
<PAGE>
MASON STREET FUNDS, INC.
AGGRESSIVE GROWTH STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
--------
INCREASE IN NET ASSETS
Operations
Net Investment Loss................................ $ (81,580)
Net Realized Gain on Investments................... 715,506
Net Change in Unrealized Appreciation of
Investments for the Period....................... 7,538,053
-----------
Net Increase in Net Assets
Resulting from Operations...................... 8,171,979
-----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,571,636 Shares.............. 25,821,426
Payments for 151 Shares Redeemed.................... (1,867)
-----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,571,485 shares)............................... 25,819,559
-----------
Class B
Proceeds from Sale of 27,098 Shares.................. 316,931
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(27,098 shares).................................. 316,931
-----------
Total Increase in Net Assets......................... 34,308,469
NET ASSETS
Beginning of Period.................................. 12,000
-----------
End of Period (includes undistributed
net investment loss of ($81,580)................... $34,320,469
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
AGGRESSIVE GROWTH STOCK FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CLASS A CLASS B
-------- --------
FOR THE PERIOD FOR THE PERIOD
MARCH 31, 1997* MARCH 31, 1997*
TO TO
JULY 31, 1997 JULY 31, 1997
(UNAUDITED) (UNAUDITED)
--------------- --------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period...... $ 10.00 $ 10.00
Income from Investment Operations:......
Net Investment Loss#.................. (0.03) (0.06)
Net Realized and Unrealized Gains.....
on Investments...................... 3.23 3.23
-------- --------
Total from Investment Operations... 3.20 3.17
-------- --------
Less Distributions:
Distributions from Net Investment
Income.............................. 0.00 0.00
Distributions from Realized
Gains on Investments................ 0.00 0.00
-------- --------
Total Distributions................ 0.00 0.00
-------- --------
Net Asset Value, End of Period............ $ 13.20 $ 13.17
======== ========
Total Return+............................. 32.00%+ 31.70%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands).. $ 33,956 $365
======== ========
Ratio of Expenses to Average Net Assets... 1.30%** 1.95%**
======== ========
Ratio of Gross Expenses to Average
Net Assets.............................. 1.68%** 2.33%**
======== ========
Ratio of Net Investment Loss to
Average Net Assets...................... -0.84%** -1.59%**
======== ========
Portfolio Turnover Rate................... 18.14% 18.14%
======== ========
Average Commission Rate................... $ 0.0522 $ 0.0522
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC
GROWTH STOCK FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Common Stocks
(cost $24,143,623)................................. $30,409,638
Money Market Investments
(cost $2,895,584).................................. 2,895,584
-----------
33,305,222
Cash................................................. 220,392
Due from Sale of Fund Shares......................... 21,730
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
Dividends and Interest Receivable.................... 12,517
Futures Variation Margin............................. 1,175
-----------
Total Assets....................................... 33,598,197
-----------
LIABILITIES
Due on Purchase of Securities........................ 1,005,607
Due to Investment Advisor............................ 70,251
Accrued Expenses..................................... 51,669
Payable to Northwestern Mutual Life.................. 37,161
-----------
Total Liabilities.................................. 1,164,688
-----------
NET ASSETS............................................. $32,433,509
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,584,700
shares outstanding)................................ $25,952,537
Undistributed Net Investment
Income............................................. 20,758
Undistributed Accumulated Net
Realized Gain on Investments....................... 94,399
Net Unrealized Appreciation of:
Investment Securities.............................. 6,266,015
Index Futures Contracts............................ 99,800
-----------
Net Assets for 2,584,700 Shares
Outstanding........................................ $32,433,509
===========
Per Share of Class A (Based on 2,570,720
Shares Issued and Outstanding):
Offering Price..................................... $ 13.18
===========
Net Asset Value and Redemption Price............... $ 12.55
===========
Per Share of Class B (Based on 13,980
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................. $ 12.52
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Dividends (less foreign dividend tax of
$1,135).......................................... $ 96,051
Interest........................................... 46,627
-----------
Total Income..................................... 142,678
-----------
EXPENSES
Management Fees.................................... 70,251
Shareholder Servicing Fees......................... 23,417
Registration Fees.................................. 15,388
Transfer Agent Fees................................ 14,066
Distribution Fees:
Class A.......................................... 9,344
Class B.......................................... 174
Administrative Fees................................ 9,367
Custody Fees....................................... 6,445
Audit Fees......................................... 5,167
Shareholder Reports................................ 2,050
Miscellaneous Expenses............................. 2,199
Organizational Costs............................... 1,348
Outside Professional Fees.......................... 981
-----------
Total Expenses................................... 160,197
-----------
Less:
Custodian Fees Paid Indirectly................. (707)
Expenses Reimbursed by Affiliates.............. (37,570)
-----------
Total Net Expenses............................... 121,920
-----------
Net Investment Income.............................. 20,758
-----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..................... 94,399
Net Change in Unrealized Appreciation of:
Investments Securities............................. 6,266,015
Index Futures Contracts............................ 99,800
-----------
Net Change in Unrealized
Appreciation of Investments for
the Period..................................... 6,365,815
-----------
Net Gain on Investments................................ 6,460,214
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $6,480,972
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC
GROWTH STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 20,758
Net Realized Gain on Investments................... 94,399
Net Change in Unrealized Appreciation of
Investments for the Period....................... 6,365,815
-----------
Net Increase in Net Assets Resulting
from Operations.............................. 6,480,972
-----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,570,236 Shares............. 25,790,381
Payments for 116 Shares Redeemed................... (1,313)
-----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,570,120 shares)............................. 25,789,068
-----------
Class B
Proceeds from Sale of 13,380 Shares................ 151,469
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(13,380 shares)................................ 151,469
-----------
Total Increase in Net Assets......................... 32,421,509
NET ASSETS
Beginning of Period.................................. 12,000
-----------
End of Period (includes undistributed net
investment income of $20,758)...................... $32,433,509
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC
GROWTH STOCK FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CLASS A CLASS B
------- -------
FOR THE PERIOD FOR THE PERIOD
MARCH 31, 1997* MARCH 31, 1997*
TO TO
JULY 31, 1997 JULY 31, 1997
(UNAUDITED) (UNAUDITED)
-------------- --------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income(Loss)#.............. 0.01 (0.02)
Net Realized and Unrealized Gains
on Investments.......................... 2.54 2.54
------- -------
Total from Investment Operations...... 2.55 2.52
------- -------
Less Distributions:
Distributions from Net Investment Income.. 0.00 0.00
Distributions from Realized Gains
on Investments.......................... 0.00 0.00
------- -------
Total Distributions................... 0.00 0.00
------- -------
Net Asset Value, End of Period................ $ 12.55 $ 12.52
======= =======
Total Return+................................. 25.50%+ 25.20%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $32,258 $ 175
======= =======
Ratio of Expenses to Average Net Assets....... 1.30%** 1.95%**
======= =======
Ratio of Gross Expenses to Average
Net Assets.................................. 1.70%** 2.35%**
======= =======
Ratio of Net Investment Income(Loss)
to Average Net Assets....................... 0.22%** -0.59%**
======= =======
Portfolio Turnover Rate....................... 4.44% 4.44%
======= =======
Average Commission Rate....................... $0.0487 $0.0487
======= =======
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
MUNICIPAL BOND FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Bonds
(cost $25,387,349)................................. $26,683,397
Money Market Investments
(cost $400,000).................................... 400,000
-----------
27,083,397
Cash................................................. 44,458
Due from Sale of Securities.......................... 953,669
Interest Receivable.................................. 265,681
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
Futures Variation Margin............................. 3,750
Due from Sale of Fund Shares......................... 32
-----------
Total Assets........................................ 28,388,148
-----------
LIABILITIES
Due on Purchase of Securities........................ 952,415
Income Dividend Payable.............................. 102,433
Payable to Northwestern Mutual Life.................. 37,161
Accrued Expenses..................................... 47,595
Due to Investment Advisor............................ 25,833
-----------
Total Liabilities................................... 1,165,437
-----------
NET ASSETS............................................. $27,222,711
===========
Represented By:
Aggregate Paid in
(300,000,000 shares authorized,
$.001 par value; 2,574,102
shares outstanding)................................ $25,757,194
Undistributed Accumulated Net
Realized Gain on Investments....................... 144,781
Net Unrealized Appreciation of:
Investment Securities.............................. 1,296,048
Futures Contracts.................................. 24,688
-----------
Net Assets for 2,574,102 Shares
Outstanding........................................ $27,222,711
===========
Per Share of Class A (Based on 2,549,899
Shares Issued and Outstanding):
Offering Price..................................... $ 11.11
===========
Net Asset Value and Redemption Price............... $ 10.58
===========
Per Share of Class B (Based on 24,203
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................. $ 10.58
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Interest........................................... $458,863
-----------
Expenses
Management Fees.................................... 25,833
Shareholder Servicing Fees......................... 21,527
Transfer Agent Fees................................ 13,381
Registration Fees.................................. 13,294
Distribution Fees:
Class A.......................................... 8,575
Class B.......................................... 271
Administrative Fees................................ 8,611
Audit Fees......................................... 5,667
Miscellaneous Expenses............................. 3,154
Shareholder Reports................................ 1,506
Organizational Costs............................... 1,348
Outside Professional Fees.......................... 1,181
Custody Fees....................................... 1,083
-----------
Total Expenses................................... 105,431
-----------
Less:
Custodian Fees Paid Indirectly................. (2,692)
Expenses Reimbursed by Affiliates.............. (29,320)
-----------
Total Net Expenses............................... 73,419
-----------
Net Investment Income.............................. 385,444
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net Realized Gain on Investments:
Investment Securities.............................. 89,866
Futures Contracts.................................. 54,915
-----------
Net Realized Gain on Investments
for the Period................................. 144,781
-----------
Net Change in Unrealized Appreciation of:
Investment Securities.............................. 1,296,048
Futures Contracts.................................. 24,688
-----------
Net Change in Unrealized
Appreciation of Investments for
the Period..................................... 1,320,736
-----------
Net Gain on Investments............................... 1,465,517
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $ 1,850,961
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income................................ $ 385,444
Net Realized Gain on Investments..................... 144,781
Net Change in Unrealized Appreciation
of Investments for the Period...................... 1,320,736
-----------
Net Increase in Net Assets Resulting
from Operations.................................. 1,850,961
-----------
Distributions to Class A Shareholders
from Net Investment Income........................... (384,168)
Distributions to Class B Shareholders
from Net Investment Income........................... (1,276)
-----------
Net Decrease in Net Assets Resulting
from Distributions to Shareholders................ (385,444)
-----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,521,621 Shares................. 25,219,770
Proceeds from Shares Issued on
Reinvestment of Distributions Paid
(27,678 shares)...................................... 282,536
-----------
Net Increase in Net Assets Resulting
from Class A Fund Share
Transactions (2,549,299 shares).................... 25,502,306
-----------
Class B
Proceeds from Sale of 23,589 Shares.................... 242,740
Proceeds from Shares Issued on
Reinvestment of Distributions Paid
(14 shares).......................................... 148
-----------
Net Increase in Net Assets Resulting from
Class B Fund Share
Transactions (23,603 shares)....................... 242,888
-----------
Total Increase in Net Assets........................... 27,210,711
NET ASSETS
Beginning of Period.................................... 12,000
-----------
End of Period (includes no
undistributed net investment income)................. $27,222,711
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CLASS A CLASS B
------- -------
FOR THE PERIOD FOR THE PERIOD
MARCH 31, 1997* MARCH 31, 1997*
TO TO
JULY 31, 1997 JULY 31, 1997
(UNAUDITED) (UNAUDITED)
-------------- --------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income..................... 0.15 0.12
Net Realized and Unrealized Gains.........
on Investments.......................... 0.58 0.58
-------- --------
Total from Investment Operations....... 0.73 0.70
-------- --------
Less Distributions:
Distributions from Net
Investment Income....................... (0.15) (0.12)
Distributions from Realized
Gains on Investments.................... 0.00 0.00
-------- --------
Total Distributions.................... (0.15) (0.12)
-------- --------
Net Asset Value, End of Period................ $ 10.58 $ 10.58
======== ========
Total Return+................................. 7.37%+ 7.07%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $26,967 $ 256
======== ========
Ratio of Expenses to Average Net Assets....... 0.85%** 1.50%**
======== ========
Ratio of Gross Expenses to
Average Net Assets.......................... 1.22%** 1.86%**
======== ========
Ratio of Net Investment Income
to Average Net Assets....................... 4.51%** 3.81%**
======== ========
Portfolio Turnover Rate....................... 108.87% 108.87%
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
INTERNATIONAL EQUITY FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Common Stocks
(cost $14,952,196)................................. $16,258,345
Money Market Investments
(cost $11,696,438)................................. 11,696,438
-----------
27,954,783
Cash................................................. 79,252
Dividends Receivable................................. 85,022
Due from Foreign Currency
Contracts.......................................... 82,182
Due from Purchase of Fund Shares..................... 23,384
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
-----------
Total Assets.................................... 28,261,784
-----------
LIABILITIES
Due on Purchase of Securities........................ 104,807
Due on Foreign Currency Contracts.................... 82,325
Due to Investment Advisor............................ 73,990
Accrued Expenses..................................... 70,071
Payable to Northwestern Mutual Life.................. 37,161
-----------
Total Liabilities................................ 368,354
-----------
NET ASSETS............................................. $27,893,430
===========
Represented By:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,619,502
shares outstanding)................................ $26,224,917
Undistributed Net Investment
Income............................................. 351,113
Undistributed Accumulated Net
Realized Gain on Investments....................... 12,546
Net Unrealized Appreciation(Depreciation) of:
Investment Securities.............................. 1,306,149
Foreign Currency Transactions...................... (1,295)
-----------
Net Assets for 2,619,502 Shares
Outstanding........................................ $27,893,430
===========
Per Share of Class A (Based on 2,583,939
Shares Issued and Outstanding):
Offering Price.................................... $ 11.18
===========
Net Asset Value and Redemption Price.............. $ 10.65
===========
Per Share of Class B (Based on 35,563
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................ $ 10.63
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $22,137).................................... $222,737
Interest............................................. 274,372
---------
Total Income....................................... 497,109
---------
Expenses
Management Fees.................................... 73,990
Custody Fees....................................... 49,906
Shareholder Servicing Fees......................... 21,762
Registration Fees.................................. 16,658
Transfer Agent Fees................................ 14,146
Distribution Fees:
Class A.......................................... 8,638
Class B.......................................... 499
Administrative Fees................................ 8,705
Audit Fees......................................... 6,000
Miscellaneous Expenses............................. 4,272
Shareholder Reports................................ 2,390
Organizational Costs............................... 1,348
Outside Professional Fees.......................... 1,248
---------
Total Expenses................................... 209,562
---------
Less:
Expenses Reimbursed by Affiliates.............. (63,566)
---------
Total Net Expenses............................... 145,996
---------
Net Investment Income.................................. 351,113
---------
REALIZED AND UNREALIZED GAIN(LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
Net Realized Gain on
Foreign Currency Transactions...................... 12,546
Net Change in Unrealized Appreciation(Depreciation) of:
Investment Securities.............................. 1,306,149
Foreign Currency Transactions.................... (1,295)
---------
Net Change in Unrealized
Appreciation for the Period.................... 1,304,854
---------
Net Gain on Investments.............................. 1,317,400
---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $1,668,513
=========
<PAGE>
MASON STREET FUNDS, INC.
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 351,113
Net Realized Gain on Investments................... 12,546
Net Unrealized Appreciation of
Investments for the Period....................... 1,304,854
----------
Net Increase in Net Assets Resulting
from Operations...................................... 1,668,513
----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,583,448 Shares............. 25,857,676
Payments for 109 Shares Redeemed................... (1,134)
----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,583,339 shares)............................. 25,856,542
----------
Class B
Proceeds from Sale of 34,963 Shares................ 356,375
----------
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(34,963 shares)................................ 356,375
----------
Total Increase in Net Assets......................... 27,881,430
NET ASSETS
Beginning of Period.................................. 12,000
End of Period (includes undistributed
net investment income of $351,113)................. $27,893,430
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CLASS A CLASS B
------- -------
FOR THE PERIOD FOR THE PERIOD
MARCH 31, 1997* MARCH 31, 1997*
TO TO
JULY 31, 1997 JULY 31, 1997
(UNAUDITED) (UNAUDITED)
------------ -----------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income#.................... 0.14 0.12
Net Realized and Unrealized Gains.........
on Investments.......................... 0.51 0.51
-------- --------
Total from Investment Operations....... 0.65 0.63
-------- --------
Less Distributions:
Distributions from Net Investment Income.. 0.00 0.00
Distributions from Realized
Gains on Investments.................... 0.00 0.00
-------- --------
Total Distributions.................... 0.00 0.00
-------- --------
Net Asset Value, End of Period................ $ 10.65 $ 10.63
======== ========
Total Return+................................. 6.50%+ 6.30%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $27,515 $ 378
======== ========
Ratio of Expenses to Average Net Assets....... 1.65%** 2.30%**
======== ========
Ratio of Gross Expenses to Average
Net Assets.................................. 2.39%** 3.04%**
======== ========
Ratio of Net Investment Income
to Average Net Assets....................... 4.05%** 2.97%**
======== ========
Portfolio Turnover Rate....................... 0.00% 0.00%
======== ========
Average Commission Rate....................... $0.0029 $0.0029
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
GROWTH AND INCOME STOCK FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Common Stocks
(cost $26,171,138)................................. $31,311,497
Money Market Investments
(cost $1,098,021).................................. 1,098,021
-----------
32,409,518
Cash................................................. 303,252
Due from Sale of Securities.......................... 506,044
Dividends and Interest Receivable.................... 29,631
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
Due from Sale of Fund Shares......................... 7,946
-----------
Total Assets....................................... 33,293,552
-----------
LIABILITIES
Due on Purchase of Securities........................ 781,410
Due to Investment Advisor............................ 60,930
Accrued Expenses..................................... 51,807
Payable to Northwestern Mutual Life.................. 37,161
-----------
Total Liabilities.................................. 931,308
-----------
NET ASSETS............................................. $32,362,244
===========
Represented By:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,570,382
shares outstanding)................................ $25,767,551
Undistributed Net Investment
Income............................................. 43,674
Undistributed Accumulated Net
Realized Gain on Investments....................... 1,410,660
Net Unrealized Appreciation of
Investments........................................ 5,140,359
-----------
Net Assets for 2,570,382 Shares
Outstanding........................................ $32,362,244
===========
Per Share of Class A (Based on 2,553,702
Shares Issued and Outstanding):
Offering Price..................................... $ 13.22
===========
Net Asset Value and Redemption Price............... $ 12.59
===========
Per Share of Class B (Based on 16,680
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................. $ 12.56
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Dividends (less foreign dividend tax of
$1,853).......................................... $ 135,906
Interest........................................... 20,505
--------
Total Income..................................... 156,411
--------
Expenses
Management Fees.................................... 60,930
Shareholder Servicing Fees......................... 23,435
Registration Fees.................................. 14,715
Transfer Agent Fees................................ 14,094
Distribution Fees:
Class A.......................................... 9,335
Class B.......................................... 289
Administrative Fees................................ 9,374
Audit Fees......................................... 5,333
Custody Fees....................................... 4,121
Shareholder Reports................................ 2,203
Miscellaneous Expenses............................. 1,875
Organizational Costs............................... 1,348
Outside Professional Fees.......................... 981
--------
Total Expenses................................... 148,034
--------
Less:
Custodian Fees Paid Indirectly................... (1,552)
Expenses Reimbursed by Affiliates................ (33,745)
--------
Total Net Expenses............................... 112,737
--------
Net Investment Income.................................. 43,674
--------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..................... 1,410,660
Net Change in Unrealized Appreciation................
of Investments for the Period...................... 5,140,359
---------
Net Gain on Investments.............................. 6,551,019
---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $6,594,693
=========
<PAGE>
MASON STREET FUNDS, INC.
GROWTH AND INCOME STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
---------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 43,674
Net Realized Gain on Investments................... 1,410,660
Net Change in Unrealized Appreciation
of Investments for the Period.................... 5,140,359
----------
Net Increase in Net Assets Resulting
from Operations................................ 6,594,693
----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,553,219 Shares............. 25,583,255
Payments for 116 Shares Redeemed................... (1,401)
----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,553,103 shares)............................. 25,581,854
----------
Class B
Proceeds from Sale of 16,185 Shares................ 174,940
Payments for 106 Shares Redeemed................... (1,243)
----------
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(16,079 shares)................................ 173,697
----------
Total Increase in Net Assets....................... 32,350,244
NET ASSETS
Beginning of Period.................................. 12,000
----------
End of Period (includes undistributed net
investment income of $43,674)...................... $32,362,244
==========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
GROWTH AND INCOME STOCK FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
Class A Class B
------- -------
For the Period For the Period
March 31, 1997* March 31, 1997*
to to
July 31, 1997 July 31, 1997
(Unaudited) (Unaudited)
------------- -------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period....... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income(Loss)#........... 0.02 (0.01)
Net Realized and Unrealized Gains
on Investments....................... 2.57 2.57
--------- ---------
Total from Investment Operations.... 2.59 2.56
--------- ---------
Less Distributions:
Distributions from Net
Investment Income.................... 0.00 0.00
Distributions from Realized
Gains on Investments................. 0.00 0.00
--------- ---------
Total Distributions................ 0.00 0.00
--------- ---------
Net Asset Value, End of Period............. $ 12.59 $ 12.56
========= =========
Total Return+.............................. 25.90%+ 25.60%+
========= =========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)... $ 32,153 $ 210
========= =========
Ratio of Expenses to Average Net Assets.... 1.20%** 1.85%**
========= =========
Ratio of Gross Expenses to
Average Net Assets....................... 1.55%** 2.20%**
========= =========
Ratio of Net Investment Income (Loss)
to Average Net Assets.................... 0.47%** -0.35%**
========= =========
Portfolio Turnover Rate.................... 43.65% 43.65%
========= =========
Average Commission Rate.................... $ 0.0450 $ 0.0450
========= =========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
INDEX 500 STOCK FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Common Stocks
(cost $25,686,447)................................. $32,163,002
Money Market Investments
(cost $1,596,750).................................. 1,596,750
-----------
33,759,752
Due from Sale of Fund Shares......................... 117,092
Dividends and Interest Receivable.................... 40,843
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
Futures Variation Margin............................. 1,175
-----------
Total Assets....................................... 33,956,023
-----------
LIABILITIES
Accrued Expenses..................................... 53,744
Payable to Northwestern Mutual Life.................. 37,161
Due to Investment Advisor............................ 28,835
-----------
Total Liabilities.................................. 119,740
-----------
NET ASSETS............................................. $33,836,283
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,682,289
shares outstanding)................................ $27,056,897
Undistributed Net Investment
Income............................................. 108,378
Undistributed Accumulated Net
Realized Gain on Investments....................... 54,853
Net Unrealized Appreciation of:
Investment Securities.............................. 6,476,555
Index Futures Contracts............................ 139,600
-----------
Net Assets for 2,682,289 Shares
Outstanding........................................ $33,836,283
===========
Per Share of Class A (Based on 2,604,802
Shares Issued and Outstanding):
Offering Price..................................... $ 12.28
===========
Net Asset Value and Redemption Price.............. $ 11.70
===========
Per Share of Class B (Based on 77,487
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................ $ 11.69
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Dividends (less foreign dividend
tax of $1,527)..................................... $ 168,275
Interest............................................. 22,689
-----------
Total Income....................................... 190,964
-----------
Expenses
Management Fees...................................... 28,835
Shareholder Servicing Fees........................... 24,029
Registration Fees.................................... 20,657
Custody Fees......................................... 20,067
Transfer Agent Fees.................................. 14,403
Distribution Fees:
Class A............................................ 9,475
Class B............................................ 1,025
Administrative Fees.................................. 9,612
Miscellaneous Expenses............................... 5,592
Audit Fees........................................... 5,000
Shareholder Reports.................................. 3,430
Organizational Costs................................. 1,348
Outside Professional Fees............................ 981
-----------
Total Expenses..................................... 144,454
-----------
Less:
Custodian Fees Paid Indirectly................... (881)
Expenses Reimbursed by Affiliates................ (60,987)
-----------
Total Net Expenses................................. 82,586
-----------
Net Investment Income................................ 108,378
-----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..................... 54,853
Net Change in Unrealized Appreciation of:
Investment Securities.............................. 6,476,555
Index Futures Contracts............................ 139,600
-----------
Net Change in Unrealized
Appreciation of Investments for
the Period....................................... 6,616,155
-----------
Net Gain on Investments.............................. 6,671,008
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $6,779,386
==========
<PAGE>
MASON STREET FUNDS, INC.
INDEX 500 STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
---------
INCREASE IN NET ASSETS
Operations
Net Investment Income ............................ $ 108,378
Net Realized Gain on Investments.................. 54,853
Net Change in Unrealized Appreciation of
Investments for the Period...................... 6,616,155
----------
Net Increase in Net Assets Resulting
from Operations............................... 6,779,386
----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,611,159 Shares............ 26,245,756
Payments for 6,957 Shares Redeemed................ (68,885)
----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,604,202 shares)............................ 26,176,871
----------
Class B
Proceeds from Sale of 85,456 Shares............... 971,968
Payments for 8,569 Shares Redeemed................ (103,942)
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(76,887 shares)............................... 868,026
----------
Total Increase in Net Assets........................ 33,824,283
----------
NET ASSETS
Beginning of Period................................. 12,000
End of Period (includes undistributed
net investment income of $108,378)................ $33,836,283
==========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
INDEX 500 STOCK FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
Class A Class B
------- -------
For the Period For the Period
March 31, 1997* March 31, 1997*
to to
July 31, 1997 July 31, 1997
(Unaudited) (Unaudited)
-------------- -------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income#.................... 0.04 0.01
Net Realized and Unrealized Gains
on Investments.......................... 2.58 2.58
-------- --------
Total from Investment Operations....... 2.62 2.59
-------- --------
Less Distributions:
Distributions from Net Investment Income.. 0.00 0.00
Distributions from Realized
Gains on Investments.................... 0.00 0.00
-------- --------
Total Distributions.................... 0.00 0.00
-------- --------
Net Asset Value, End of Period................ $ 12.62 $ 12.59
======== ========
Total Return+................................. 26.20%+ 25.90%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $ 32,860 $ 976
======== ========
Ratio of Expenses to Average Net Assets....... 0.85%** 1.50%**
======== ========
Ratio of Gross Expenses to Average Net Assets. 1.47%** 2.12%**
======== ========
Ratio of Net Investment Income
to Average Net Assets....................... 1.13%** 0.37%**
======== ========
Portfolio Turnover Rate....................... 1.19% 1.19%
======== ========
Average Commission Rate....................... $ 0.0253 $ 0.0253
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
HIGH YIELD BOND FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Bonds
(cost $18,720,803)................................. $19,873,420
Preferred Stock
(cost $7,029,750).................................. 7,672,040
Money Market Investments
(cost $498,021).................................... 498,021
-----------
28,043,481
Cash................................................. 494,034
Due from Sale of Securities.......................... 1,383,229
Dividends and Interest Receivable.................... 446,638
Due from Sale of Fund Shares......................... 49,517
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
-----------
Total Assets.................................... 30,454,060
-----------
LIABILITIES
Due on Purchase of Securities........................ 1,373,935
Income Dividend Payable.............................. 178,541
Due to Investment Advisor............................ 66,570
Accrued Expenses..................................... 48,971
Payable to Northwestern Mutual Life.................. 37,161
-----------
Total Liabilities................................ 1,705,178
-----------
NET ASSETS............................................. $28,748,882
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,617,756
shares outstanding)................................ $26,233,787
Undistributed Accumulated Net
Realized Gain on Investments....................... 719,188
Net Unrealized Appreciation of
Investments........................................ 1,795,907
-----------
Net Assets for 2,617,756 Shares
Outstanding........................................ $28,748,882
===========
Per Share of Class A (Based on 2,604,557
Shares Issued and Outstanding):
Offering Price.................................... $ 11.53
===========
Net Asset Value and Redemption Price.............. $ 10.98
===========
Per Share of Class B (Based on 13,199
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................ $ 10.98
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Interest........................................... $738,388
Dividends.......................................... 87,752
----------
Total Income..................................... 826,140
----------
Expenses
Management Fees...................................... 66,570
Shareholder Servicing Fees........................... 22,190
Registration Fees.................................... 14,304
Transfer Agent Fees.................................. 13,859
Distribution Fees:
Class A............................................ 8,852
Class B............................................ 177
Administrative Fees.................................. 8,876
Audit Fees........................................... 5,667
Miscellaneous Expenses............................... 4,104
Shareholder Reports.................................. 1,768
Organizational Costs................................. 1,348
Outside Professional Fees............................ 1,181
----------
Total Expenses..................................... 148,896
----------
Less:
Expenses Reimbursed by Affiliates.............. (33,355)
----------
Total Net Expenses................................. 115,541
----------
Net Investment Income................................ 710,599
----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net Realized Gain on Investments..................... 719,188
Net Change in Unrealized Appreciation
of Investments for the Period...................... 1,795,907
----------
Net Gain on Investments.............................. 2,515,095
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $3,225,694
==========
<PAGE>
MASON STREET FUNDS, INC.
HIGH YIELD BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 710,599
Net Realized Gain on Investments................... 719,188
Net Change in Unrealized Appreciation
of Investments for the Period.................... 1,795,907
----------
Net Increase in Net Assets
Resulting from Operations...................... 3,225,694
----------
Distributions to Class A Shareholders from
Net Investment Income.............................. (709,004)
Distributions to Class B Shareholders from
Net Investment Income.............................. (1,595)
----------
Net Decrease in Net Assets Resulting from
Distributions to Shareholders.................. (710,599)
----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,553,292 Shares............. 25,560,497
Proceeds from Shares Issued on Reinvestment
of Distributions Paid (50,815 shares)............ 530,769
Payments for 150 Shares Redeemed................... (1,625)
----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,603,957 shares)............................. 26,089,641
----------
Class B
Proceeds from Sale of 12,540 Shares................ 131,523
Proceeds from Shares Issued on Reinvestment
of Distributions Paid (59 shares)................ 623
----------
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(12,599 shares)................................ 132,146
----------
Total Increase in Net Assets......................... 28,736,882
NET ASSETS
Beginning of Period.................................. 12,000
----------
End of Period (includes no undistributed
net investment income)............................. $28,748,882
==========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
HIGH YIELD BOND FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
Class A Class B
------- -------
For the Period For the Period
March 31, 1997* March 31, 1997*
to to
July 31, 1997 July 31, 1997
(Unaudited) (Unaudited)
-------------- --------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income..................... 0.28 0.25
Net Realized and Unrealized Gains
on Investments.......................... 0.98 0.98
-------- --------
Total from Investment Operations....... 1.26 1.23
-------- --------
Less Distributions:
Distributions from Net Investment Income.. (0.28) (0.25)
Distributions from Realized Gains
on Investments.......................... 0.00 0.00
-------- --------
Total Distributions.................... (0.28) (0.25)
-------- --------
Net Asset Value, End of Period................ $ 10.98 $ 10.98
======== ========
Total Return+................................. 12.72%+ 12.44%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $ 28,604 $ 145
======== ========
Ratio of Expenses to Average Net Assets....... 1.30%** 1.95%**
======== ========
Ratio of Gross Expenses to Average Net Assets. 1.67%** 2.30%**
======== ========
Ratio of Net Investment Income
to Average Net Assets....................... 8.05%** 7.08%**
======== ========
Portfolio Turnover Rate....................... 77.40% 77.40%
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
ASSET ALLOCATION FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997
ASSETS
Common Stock
(cost $11,065,098)................................. $14,066,275
Bonds
(cost $9,175,508).................................. 9,608,067
Foreign Common Stock
(cost $3,220,955).................................. 3,993,214
Money Market Investments
(cost $1,795,958).................................. 1,795,958
Preferred Stock
(cost $977,500).................................... 1,048,750
-----------
30,512,264
Cash................................................. 62,246
Dividends and Interest Receivable.................... 194,597
Due from Sale of Securities.......................... 113,984
Due from Sale of Fund Shares......................... 37,664
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
-----------
Total Assets....................................... 30,957,916
-----------
LIABILITIES
Due on Purchase of Securities........................ 328,068
Due to Investment Advisor............................ 63,616
Accrued Expenses..................................... 59,409
Payable to Northwestern Mutual Life.................. 37,161
-----------
Total Liabilities.................................. 488,254
-----------
NET ASSETS............................................. $30,469,662
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,566,761
shares outstanding)................................ $25,726,116
Undistributed Net Investment
Income............................................. 261,386
Undistributed Accumulated Net
Realized Gain on Investments....................... 204,992
Net Unrealized Appreciation(Depreciation) of:
Investment Securities.............................. 4,277,245
Foreign Currency Transactions...................... (77)
-----------
Net Assets for 2,566,761 Shares
Outstanding........................................ $30,469,662
===========
Per Share of Class A (Based on 2,532,176
Shares Issued and Outstanding):
Offering Price.................................... $ 12.46
===========
Net Asset Value and Redemption Price.............. $ 11.87
===========
Per Share of Class B (Based on 34,585
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................. $ 11.85
===========
The Accompanying Notes are an Integral Part of the Financial Statement
(Prepared from Unaudited Figures)
STATEMENT OF OPERATIONS
FOR THE FOUR MONTHS ENDED JULY 31, 1997
INVESTMENT INCOME
Income
Interest........................................... $ 282,553
Dividends (less foreign dividend
tax of $709)..................................... 104,828
----------
Total Income................................... 387,381
----------
Expenses
Management Fees...................................... 63,616
Shareholder Servicing Fees........................... 22,720
Registration Fees.................................... 16,172
Transfer Agent Fees.................................. 14,018
Distribution Fees:
Class A............................................ 9,036
Class B............................................ 389
Custody Fees......................................... 5,460
Administrative Fees.................................. 9,088
Miscellaneous Expenses............................... 5,720
Audit Fees........................................... 5,333
Shareholder Reports.................................. 2,254
Organizational Costs................................. 1,348
Outside Professional Fees............................ 1,181
----------
Total Expenses..................................... 156,335
----------
Less:
Custodian Fees Paid Indirectly................... (7,911)
Other Expenses Reimbursed by Affiliates.......... (22,429)
----------
Total Net Expenses................................. 125,995
----------
Net Investment Income................................ 261,386
----------
REALIZED AND UNREALIZED
GAIN(LOSS) ON INVESTMENTS
Net Realized Gain(Loss) on Investments:
Investment Securities.............................. 205,081
Foreign Currency Transactions...................... (89)
----------
Net Realized Gain for the Period................. 204,992
----------
Net Change in Unrealized Appreciation(Depreciation) of:
Investment Securities.............................. 4,277,245
Foreign Currency Transactions...................... (77)
----------
Net Change in Unrealized
Appreciation for the Period...................... 4,277,168
----------
Net Gain on Investments.............................. 4,482,160
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $4,743,546
==========
<PAGE>
MASON STREET FUNDS, INC.
ASSET ALLOCATION FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 261,386
Net Realized Gain on Investments................... 204,992
Net Change in Unrealized Appreciation of
Investments for the Period....................... 4,277,168
-----------
Net Increase in Net Assets Resulting
from Operations................................ 4,743,546
-----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,531,679 Shares.............. 25,340,982
Payments for 103 Shares Redeemed.................... (1,201)
-----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,531,576 shares).............................. 25,339,781
-----------
Class B
Proceeds from Sale of 33,985 Shares................. 374,335
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(33,985 shares)................................. 374,335
-----------
Total Increase in Net Assets......................... 30,457,662
NET ASSETS
Beginning of Period.................................. 12,000
-----------
End of Period (includes undistributed net
investment income of $261,386)..................... $30,469,662
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CLASS A CLASS B
------- -------
FOR THE PERIOD FOR THE PERIOD
MARCH 31, 1997* MARCH 31, 1997*
TO TO
JULY 31, 1997 JULY 31, 1997
(UNAUDITED) (UNAUDITED)
-------------- -------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:..........
Net Investment Income#.................... 0.10 0.08
Net Realized and Unrealized Gains.........
on Investments.......................... 1.77 1.77
-------- --------
Total from Investment Operations....... 1.87 1.85
-------- --------
Less Distributions:
Distributions from Net Investment Income.. 0.00 0.00
Distributions from Realized
Gains on Investments.................... 0.00 0.00
-------- --------
Total Distributions.................... 0.00 0.00
-------- --------
Net Asset Value, End of Period................ $ 11.87 $ 11.85
======== ========
Total Return+................................. 18.70%+ 18.50%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period
(in thousands).............................. $ 30,060 $ 410
======== ========
Ratio of Expenses to Average Net Assets....... 1.35%** 2.00%**
======== ========
Ratio of Gross Expenses to Average Net Assets. 1.67%** 2.32%**
======== ========
Ratio of Net Investment Income to
Average Net Assets.......................... 2.86%** 2.04%**
======== ========
Portfolio Turnover Rate....................... 28.60% 28.60%
======== ========
Average Commission Rate....................... $ 0.0656 $ 0.0656
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
# Calculated based on average shares outstanding.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS, INC.
SELECT BOND FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
July 31, 1997
ASSETS
Bonds
(cost $25,565,028)................................. $26,400,530
Money Market Investments.............................
(cost $2,499,519).................................. 2,499,519
-----------
28,900,049
Cash................................................. 537,947
Due from Sale of Fund Securities..................... 2,014,520
Interest Receivable.................................. 379,381
Due from Sale of Fund Shares......................... 36,972
Unamortized Organizational Costs..................... 19,285
Prepaid Initial Registration Expenses................ 17,876
-----------
Total Assets.................................... 31,906,030
-----------
LIABILITIES
Due on Purchase of Securities........................ 4,468,948
Income Dividend Payable.............................. 147,497
Accrued Expenses..................................... 47,268
Payable to Northwestern Mutual Life.................. 37,161
Due to Investment Advisor............................ 25,752
-----------
Total Liabilities................................ 4,726,626
-----------
NET ASSETS............................................. $27,179,404
===========
REPRESENTED BY:
Aggregate Paid in Capital
(300,000,000 shares authorized,
$.001 par value; 2,571,569
shares outstanding)................................ $25,731,052
Undistributed Accumulated Net
Realized Gain on Investments....................... 616,788
Net Unrealized Appreciation of
Investments Securities............................. 831,564
-----------
Net Assets for 2,571,569 Shares
Outstanding........................................ $27,179,404
===========
Per Share of Class A (Based on 2,564,527
Shares Issued and Outstanding):
Offering Price.................................... $ 11.10
===========
Net Asset Value and Redemption Price.............. $ 10.57
===========
Per Share of Class B (Based on 7,042
Shares Issued and Outstanding):
Net Asset Value, Offering and
Redemption Price................................ $ 10.57
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
STATEMENT OF OPERATIONS
For the Four Months Ended July 31, 1997
INVESTMENT INCOME
Income
Interest........................................... $ 614,541
-----------
Expenses
Management Fees...................................... 25,752
Shareholder Servicing Fees........................... 21,460
Transfer Agent Fees.................................. 13,466
Registration Fees.................................... 12,846
Distribution Fees:
Class A............................................ 8,575
Class B............................................ 65
Administrative Fees.................................. 8,584
Audit Fees........................................... 5,167
Miscellaneous Expenses............................... 3,756
Custody Fees......................................... 3,148
Shareholder Reports.................................. 1,389
Organizational Costs................................. 1,348
Outside Professional Fees............................ 1,181
-----------
Total Expenses..................................... 106,737
-----------
Less:
Custodian Fees Paid Indirectly................... (3,503)
Expenses Reimbursed by Affiliates................ (30,204)
-----------
Total Net Expenses................................. 73,030
-----------
Net Investment Income................................ 541,511
-----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net Realized Gain on Investments:
Investment Securities.............................. 506,650
Futures Contracts.................................. 110,138
-----------
Net Realized Gain on Investments
for the Period..................................... 616,788
-----------
Net Change in Unrealized Appreciation of
Investment Securities for the Period............... 831,564
-----------
Net Gain on Investments.............................. 1,448,352
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................ $ 1,989,863
===========
<PAGE>
MASON STREET FUNDS, INC.
SELECT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
FOUR MONTHS
ENDED
JULY 31,
1997
----------
INCREASE IN NET ASSETS
Operations
Net Investment Income.............................. $ 541,511
Net Realized Gain on Investments................... 616,788
Net Change in Unrealized Appreciation of
Investments for the Period....................... 831,564
-----------
Net Increase in Net Assets Resulting
from Operations................................ 1,989,863
-----------
Distributions to Class A Shareholders from
Net Investment Income.............................. (541,037)
Distributions to Class B Shareholders from
Net Investment Income.............................. (474)
-----------
Net Decrease in Net Assets Resulting from
Distributions to Shareholders.................. (541,511)
-----------
Fund Share Transactions
Class A
Proceeds from Sale of 2,525,402 Shares............. 25,260,077
Proceeds from Shares Issued on Reinvestment
of Distributions Paid
(38,575 shares).................................. 393,177
Payments for 50 Shares Redeemed.................... (521)
-----------
Net Increase in Net Assets Resulting from
Class A Fund Share Transactions
(2,563,927 shares)............................. 25,652,733
-----------
Class B
Proceeds from Sale of 6,430 Shares................. 66,191
Proceeds from Shares Issued on Reinvestment
of Distributions Paid(12 shares)................. 128
-----------
Net Increase in Net Assets Resulting from
Class B Fund Share Transactions
(6,442 shares)................................. 66,319
-----------
Total Increase in Net Assets......................... 27,167,404
Net Assets
Beginning of Period.................................. 12,000
-----------
End of Period (includes no undistributed
net investment income)............................. $27,179,404
===========
The Accompanying Notes are an Integral Part of the Financial Statements
(Prepared from Unaudited Figures)
<PAGE>
MASON STREET FUNDS, INC.
SELECT BOND FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
Class A Class B
------- -------
For the Period For the Period
March 31, 1997* March 31, 1997*
to to
July 31, 1997 July 31, 1997
(Unaudited) (Unaudited)
-------------- --------------
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period.......... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income..................... 0.21 0.19
Net Realized and Unrealized Gains
on Investments.......................... 0.57 0.57
-------- --------
Total from Investment Operations....... 0.78 0.76
-------- --------
Less Distributions:
Distributions from Net Investment Income.. (0.21) (0.19)
Distributions from Realized
Gains on Investments.................... 0.00 0.00
-------- --------
Total Distributions.................... (0.21) (0.19)
-------- --------
Net Asset Value, End of Period................ $ 10.57 $ 10.57
======== ========
Total Return+................................. 7.91%+ 7.65%+
======== ========
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands)...... $ 27,105 $ 74
======== ========
Ratio of Expenses to Average Net Assets....... 0.85%** 1.50%**
======== ========
Ratio of Gross Expenses to
Average Net Assets.......................... 1.23%** 1.88%**
======== ========
Ratio of Net Investment Income
to Average Net Assets....................... 6.34%** 5.74%**
======== ========
Portfolio Turnover Rate....................... 130.39% 130.39%
======== ========
* Commencement of Operations.
** Computed on an annualized basis.
+ Total Return includes deductions for management and other fund expenses;
excludes deductions for sales loads.
++ Reflects total return for the period; not annualized.
The Accompanying Notes are an Integral Part of the Financial Statements
<PAGE>
MASON STREET FUNDS
SELECT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31, 1997
MARKET
PAR VALUE
BONDS (91.35%) --- ------
- --------------
CORPORATE BONDS (16.00%)
- ------------------------
AUTOMOBILES (3.51%)
Tata Engineering and Locomotive
Company Limited, 7.875%, 7/15/07 (144a) 1,000,000 $ 1,015,400
----------
BANK HOLDING COMPANIES (0.89%)
First Union Institutional
Capital II, 7.85%, 1/1/27 250,000 256,980
----------
COMMUNICATIONS (3.53%)
+Panamsat, 0%, 8/1/03 500,000 490,310
WorldCom, Inc, 7.75%, 4/1/27 500,000 530,704
----------
1,021,014
DIVERSIFIED/CONGLOMORATE (3.54%)
Hutchison Whampoa Finance (CI) Limited,
6.988%, 8/1/37 (144a) 1,000,000 1,024,330
----------
MEDIA/CABLE (1.78%)
Time Warner Entertainment, 7.25%, 9/1/08 500,000 513,171
----------
UTILITIES (2.75%)
Camuzzi Gas Pampeana, 9.25%, 12/15/01 750,000 792,563
----------
TOTAL CORPORATE BONDS $ 4,623,458
----------
GOVERNMENT BONDS (DOMESTIC AND FOREIGN) AND AGENCY BONDS (20.03%)
- -----------------------------------------------------------------
Argentina, Republic of, 8.75%, 5/9/02 750,000 $ 756,375
Brazil, Republic of, 6.937%, 4/15/12 750,000 627,187
Brazil, Republic of, 8%, 4/15/14 1,120,650 945,941
Federal National Mortgage Assoc., 6%, 05/01/2011 1,652,829 1,618,549
Poland, 4%, 10/27/14 500,000 437,500
Russian, 0%, 12/29/49 1,000,000 701,250
U.S. Treasury, 0%, 02/15/2019 PO 2,800,000 703,080
----------
TOTAL GOVERNMENT BONDS $ 5,789,882
----------
MORTGAGE BACKED AND ASSET BACKED SECURITIES (45.17%)
- ----------------------------------------------------
AUTO-RELATED (3.55%)
Carco Auto Loan Master Trust, 6.689%, 8/15/06 250,000 $ 251,172
Team Fleet Financing Corporation,
7.35%, 5/15/03 (144a) 750,000 775,078
----------
TOTAL 1,026,250
----------
COMMERCIAL MORTGAGES (37.97%)
Asset Securitization Corporation,
1.257%, 11/13/26 IO 19,217,244 852,765
Chase Commercial Mortgage Securities
Corp., 7.37%, 6/19/29 250,000 258,711
Credit Suisse First Boston Mortgage
Securities Corp., 7.26%, 6/20/29 (144a) 249,650 259,792
Credit Suisse First Boston Mortgage
Securities Corp., 7.28%, 6/20/29 (144a) 250,000 260,977
Credit Suisse First Boston Mortgage
Securities Corp., 7.46%, 6/20/29 (144a) 500,000 521,953
First Union-Lehman Brothers Commercial
Mortgage Trust, 1.307%, 4/18/27 IO 13,977,789 1,118,223
LB Commercial Conduit Mortgage
Trust, 1.248%, 10/25/26 IO 17,874,568 1,186,979
LB Mortgage Trust, 8.396%, 1/20/17 406,392 470,906
Merrill Lynch Mortgage Investors,
Inc., 7.12%, 6/18/29 500,000 517,031
Merrill Lynch Mortgage Investors,
Inc., 8.154% , 6/18/29 500,000 $ 500,937
Midland Realty Acceptance Corp.,
1.389%, 1/25/29 (144a) IO 9,833,744 786,700
NationsBank Lease Pass Thru Trust,
7.442%, 1/10/11 (144a) 500,000 517,812
Red Mountain Funding LLC, 7.365%, 1/15/19 176,000 177,320
Red Mountain Funding LLC, 7.471%, 1/15/19 400,000 382,750
Union Acceptance Corp., 6.45%, 7/9/2003 3,136,227 3,161,693
----------
TOTAL 10,974,549
----------
MANUFACTURED HOUSING (2.48%)
Mid-State Trust VI, 7.54%, 7/1/35 688,822 717,667
----------
RESIDENTIAL MORTGAGES (1.17%)
BCF L L C Mortgage Pass Thru
Certificate, 7.75%, 3/25/37 (144a) 334,358 336,657
----------
----------
TOTAL MORTGAGE BACKED AND ASSET BACKED SECURITIES $13,055,123
----------
MUNICIPAL BONDS (10.15%)
New Jersey Economic Development
Authority, 0.00%, 2/15/25 7,000,000 $ 1,044,120
New Jersey Economic Development
Authority, 0.00%, 2/15/16 2,000,000 557,460
New Jersey Economic Development
Authority, 7.425%, 2/15/29 1,250,000 1,330,486
----------
TOTAL MUNICIPAL BONDS $ 2,932,066
----------
TOTAL BONDS $26,400,530
----------
MONEY MARKET INVESTMENTS (8.65%)
- --------------------------------
GOVERNMENT (DOMESTIC AND FOREIGN) (3.80%)
Russia Government, 9.5%, 11/05/97 1,000,000 $ 1,000,000
U.S. Treasury, 5.08%, 9/4/97 100,000 99,519
----------
TOTAL 1,099,519
----------
FINANCE COMPANIES (4.85%)
Associates Corp of North America, 5.85%, 8/1/97 1,400,000 1,400,000
----------
TOTAL MONEY MARKET INSTRUMENTS $ 2,499,519
----------
TOTAL SELECT BOND PORTFOLIO $28,900,049
----------
+ Deferred interest security that receives no coupon payments until a
predetermined date at which the stated coupon rate becomes effective.
<PAGE>
MASON STREET FUNDS, INC.
MUNICIPAL BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
PAR VALUE
--- ------
BONDS (98.52%)
- --------------
CALIFORNIA (3.74%)
California Housing Financing
Agency, 5.75%, 2/1/29 1,000,000 $ 1,012,980
----------
COLORADO (4.21%)
++Douglas County, Colorado School
District RE.1, 6.5%, 12/15/16 1,000,000 1,139,200
----------
DISTRICT OF COLUMBIA (3.81%)
++District of Columbia, 5.1%, 6/1/03 1,000,000 1,031,200
----------
FLORIDA (3.66%)
Dade County, Florida, Water &
Sewer, 5.25%, 10/1/26 1,000,000 992,540
----------
ILLINOIS (16.10%)
Chicago, Illinois Board of
Education, 6.75%, 12/1/9 1,000,000 1,203,720
Chicago, Illinois O'Hare
International Airport, 5.7%, 1/1/8 1,000,000 1,053,970
++Illinois State Toll Highway
Authority, 6.0%, 1/1/9 1,000,000 1,126,060
Metropolitan Fair & Exposition
Authority, 5.0%, 7/1/25 1,000,000 976,860
----------
TOTAL 4,360,610
KENTUCKY (4.10%)
Louisville & Jefferson County,
Kentucky Regional Airport
Authority, 6.5%, 7/1/17 1,000,000 1,110,880
----------
MICHIGAN (8.06%)
Nice Community School District,
Michigan, Maruette & Baraga
Counties, 5.25%, 5/1/16 1,000,000 990,500
Pinckney Michigan Community
Schools, 7.25%, 5/1/6 1,000,000 1,193,160
----------
TOTAL 2,183,660
MINNESOTA (3.23%)
Northern Municipal Power Agency,
Electric Systems, 7.25%, 1/1/16 825,000 875,127
----------
NEBRASKA (3.87%)
Nebraska Investment Finance Authority ,
Single Family Housing, 6.25%, 3/1/21 1,000,000 1,047,400
----------
NEVADA (4.14%)
++Clark County, Nevada, Sanitation
District, 6.8%, 7/1/12 1,000,000 1,122,290
----------
New York (19.63%)
Metropolitan Transportation Authority,
5.625%, 7/1/25 1,000,000 1,038,250
The City of New York, 6.0%, 4/15/9 1,000,000 1,075,070
New York City Municipal Water Finance
Authority, 5.75%, 6/15/29 1,000,000 1,043,480
++New York State Local Government
Assistance Corporation, 7.0%, 4/1/16 1,000,000 1,117,320
Port Authority of New York and New
Jersey, 5.75%, 12/1/25 1,000,000 1,041,020
----------
TOTAL 5,315,140
NORTH CAROLINA (4.28%)
North Carolina Eastern Municipal
Power Agency, 7.0%, 1/1/8 1,000,000 1,160,360
----------
PUERTO RICO (3.93%)
Puerto Rico Electric Power
Authority, 5.5%, 7/1/8 1,000,000 1,064,590
----------
TEXAS (3.84%)
Brazos, Texas, Higher Education
Authority, 5.5%, 6/1/2 1,000,000 1,038,760
----------
WASHINGTON (11.92%)
Washington State Public Power Supply
System, 6.5%, 7/1/15 3,000,000 $ 3,228,660
----------
TOTAL MUNICIPAL BONDS $26,683,397
----------
MONEY MARKET INVESTMENTS (1.48%)
- --------------------------------
Associates Corporation of
North America, 5.85%,7/31/97 400,000 $ 400,000
----------
TOTAL MUNICIPAL BOND PORTFOLIO $27,083,397
==========
++Partially held by the custodian in segregated account as collateral for open
futures positions. Information regarding open futures contracts as of July 31,
1997 is summarized below:
Number of Expiration Unrealized
Issuers Contracts Date Appreciation
- ------- --------- --------- ------------
U.S. Treasury Bond Future 10 September 1997 $24,688
<PAGE>
MASON STREET FUNDS
INDEX 500 PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
SHARES/PAR VALUE
COMMON STOCK (95.27%) ---------- ------
- ---------------------
BASIC MATERIALS (5.03%)
Air Products & Chemicals, Inc. 500 $ 44,094
Alcan Aluminum Limited 1,000 39,188
Allegheny Teledyne Inc. 800 24,900
Aluminum Co. of America 800 70,800
*Armco Inc. 500 2,719
ASARCO, Inc. 200 6,800
Avery Dennison Corp. 500 22,063
B.F. Goodrich Company 200 9,038
Barrick Gold Corporation 1,600 36,500
Battle Mountain Gold Company 1,000 5,563
*Bethlehem Steel Corporation 500 5,625
Boise Cascade Corporation 200 7,413
Champion International 400 24,800
Cyprus Minerals Co. 400 10,150
Dow Chemical Company 1,000 95,000
E.I. du Pont de Nemours & Co. 4,900 327,994
Eastman Chemical Company 300 18,150
Echo Bay Mines Limited Co. 600 3,000
Ecolab, Inc. 300 14,006
Engelhard Corp. 600 12,900
*FMC Corporation 200 17,150
Freeport-McMoRan Copper & Gold, Inc. 900 26,325
Georgia Pacific Corp. 400 37,775
Great Lakes Chemical 300 15,019
Hercules Incorporated 400 21,250
Homestake Mining Company 600 8,288
Inco Limited 700 21,656
Inland Steel Industries, Inc. 200 4,588
International Flavors & Fragrances, Inc. 500 26,531
International Paper Company 1,300 72,800
James River Corp. of Virginia 400 16,475
Louisiana Pacific Corporation 500 11,469
Mead Corp. 200 14,400
Monsanto Company 2,600 129,513
Morton International, Inc. 600 20,063
Nalco Chemical Company 300 12,244
Newmont Mining Corporation 658 27,143
Nucor Corp. 400 24,825
Phelps Dodge Corporation 300 25,519
Placer Dome Incorporated 1,000 17,000
Potlatch Corporation 100 4,781
PPG Industries Inc. 800 51,200
Praxair 700 38,588
Reynolds Metals Company 300 23,400
Rohm & Haas Company 300 29,400
Sigma-Aldrich Corp. 400 13,850
Stone Container Corporation 400 6,650
Union Camp Corporation 300 17,569
Union Carbide Corporation 500 $ 27,688
USX-Marathon Group 1,300 41,844
W.R. Grace & Co. 300 18,450
Westvaco Corporation 400 13,375
Weyerhaeuser Company 900 56,025
Willamette Industries Inc. 200 15,238
Worthington Industries 400 7,925
----------
TOTAL 1,696,719
----------
CAPITAL GOODS (8.21%)
Aeroquip-Vickers Inc. 100 5,481
AMP Incorporated 1,000 52,250
*AutoZone, Inc. 700 20,038
Boeing Company 3,200 188,200
Briggs & Stratton Corporation 100 5,069
Browning-Ferris Industries Inc. 900 33,300
Case Corporation 300 18,731
Caterpillar Inc. 1,700 95,200
Centex Corporation 100 5,575
Cincinnati Milacron Inc. 200 5,600
Cooper Industries, Inc. 500 27,781
Crane Co. 200 9,088
Cummins Engine Company, Inc. 200 15,700
Deere & Company 1,100 62,563
Dover Corporation 500 35,688
Emerson Electric Co. 2,000 118,000
Fluor Corporation 400 24,600
Foster Wheeler Corporation 200 8,875
General Dynamics Corporation 300 26,550
General Electric Company 14,400 1,010,700
General Signal Corporation 200 9,838
Giddings & Lewis Company 100 2,100
Harnischfeger Industries, Inc. 200 8,625
Honeywell Inc. 600 44,813
Illinois Tool Works Inc. 1,100 57,063
Ingersoll-Rand Company 500 34,031
Johnson Controls Inc. 400 17,925
Kaufman & Broad Home Corp. 200 4,275
Laidlaw Transportation Limited 1,400 22,313
Lockheed Martin Corporation 800 85,200
Masco Corporation 700 32,813
McDermott International, Inc. 200 6,113
McDonnell Douglas Corporation 900 68,850
Millipore Corp. 200 8,838
Moore Corporation Ltd. 400 8,675
Northrop Grumman Corporation 300 34,538
Owens Corning Fiberglas Corp. 200 8,413
Pall Corporation 600 15,075
Parker-Hannifin Corporation 300 19,313
Pitney Bowes Inc. 600 45,075
Pulte Corporation 100 $ 4,081
Raychem Corp. 200 19,400
Rockwell International Corporation 900 59,063
Safety-Kleen Corp. 300 5,269
*Thermo Electron Corporation 700 23,931
Thomas & Betts Corporation 200 11,425
Timken Company 300 10,556
TRW, Inc. 500 29,250
Tyco International Ltd. 1,100 89,100
United Technologies Corp. 1,000 84,563
Waste Management Inc. 2,000 64,000
Westinghouse Electric Corp. 2,800 67,375
----------
TOTAL 2,770,888
----------
Communication Services (5.45%)
*Airtouch Communications Inc. 2,200 72,463
ALLTEL Corporation 800 26,300
Ameritech Corporation 2,400 161,850
AT&T Corporation 7,100 261,369
Bell Atlantic Corporation 1,900 137,869
Bellsouth Corporation 4,300 203,713
Frontier Corporation 700 14,438
GTE Corporation 4,200 195,300
MCI Communications Corporation 3,000 105,938
*NextLevel Systems, Inc. 600 11,963
NYNEX Corp. 1,900 105,331
SBC Communications Incorporated 4,016 237,697
Sprint Corporation 1,900 94,050
U S WEST Communications Group 2,100 76,781
*WorldCom Inc. 3,900 136,256
----------
TOTAL 1,841,318
----------
CONSUMER CYCLICAL (10.08%)
American Greetings Corp. 300 10,050
Armstrong World Industries Inc. 200 14,763
Black & Decker Corporation 400 16,850
Brunswick Corporation 400 12,900
*Charming Shoppes Incorporated 500 2,937
Chrysler Corporation 3,000 111,375
Circuit City Stores, Inc. 400 14,500
Cooper Tire & Rubber Company 300 7,481
*Costco Companies, Inc. 900 34,088
*CUC International Inc. 1,800 44,325
CVS Corporation 700 39,813
Dana Corporation 500 22,719
Darden Restaurant Inc. 700 6,694
Dayton Hudson Corporation 1,000 64,625
Deluxe Corp. 400 13,325
Dillard Department Stores, Inc. 500 18,906
Dow Jones & Company, Inc. 400 17,275
Dun & Bradstreet Corporation 700 $ 18,900
Eaton Corporation 300 27,094
Echlin Inc. 300 11,119
*Federated Department Stores, Inc. 900 39,431
Fleetwood Enterprises, Inc. 200 6,488
Ford Motor Company 5,200 212,550
*Fruit of the Loom, Incorporated 300 8,213
Gannet Company Inc. 600 59,588
General Motors Corp. 3,200 198,000
Genuine Parts Company 750 24,469
Goodyear Tire & Rubber Company 700 45,194
Harcourt General 300 14,175
*Harrahs Entertainment 400 8,200
Hasbro Inc. 600 18,413
*HFS Incorporated 700 40,775
Hilton Hotels Corporation 1,100 34,581
Home Depot, Inc. 3,150 157,106
*ITT Corp. 500 31,969
ITT Industries Inc. 500 14,156
J.C. Penney Company, Inc. 1,100 64,350
John H. Harland Company 100 1,963
Jostens, Inc. 200 5,163
*K Mart Corporation 2,100 24,938
*King World Productions, Inc. 200 8,075
Knight-Ridder Inc. 400 19,875
Liz Claiborne, Inc. 300 14,363
Longs Drug Stores Corp. 200 5,388
Lowe's Companies, Inc. 800 30,100
Marriott International 600 41,250
Mattel, Inc. 1,300 45,175
May Department Stores Company 1,000 55,875
Maytag Corporation 400 11,675
McDonald's Corporation 3,000 161,250
McGraw-Hill Companies Inc. 400 27,125
Mercantile Stores Company 200 13,438
Meredith Corporation 200 5,538
National Service Industries, Inc. 200 9,863
*Navistar International Corp. 300 6,188
New York Times Company 400 20,100
Newell Co. 700 29,356
Nike, Inc. 1,300 81,006
Nordstrom, Inc. 300 17,006
Paccar Incorporated 300 14,888
Pep Boys - Manny, Moe & Jack 300 9,975
R.R. Donnelley & Sons Company 600 24,113
Reebok International Ltd. 200 10,325
Rite Aid Corporation 500 25,969
Rubbermaid, Inc. 700 18,244
Russell Corp. 200 5,838
Sears Roebuck & Co. 1,700 107,631
Sherwin-Williams Company 800 $ 25,650
Snap-On Incorporated 300 12,375
Springs Industries, Inc. 100 4,838
Stride Rite Corp. 200 2,713
Tandy Corporation 200 11,888
The Gap, Inc. 1,200 53,325
The Limited Inc. 1,200 26,775
The Stanley Works 400 18,125
Times Mirror Company 400 21,850
TJX Companies, Inc. 700 20,913
*Toys "R" Us 1,300 44,281
Tribune Company 500 26,469
VF Corporation 300 26,925
*Viacom Incorporated 1,500 46,313
Wal-Mart Stores Inc. 9,900 371,869
Walgreen Company 1,100 62,150
Walt Disney Company 3,000 242,438
Wendy's International, Inc. 600 14,663
Whirlpool Corporation 300 15,000
*Woolworth Corp. 600 16,988
----------
TOTAL 3,404,638
----------
CONSUMER STAPLES (12.38%)
Adolph Coors Co. 200 6,294
Alberto-Culver Company 200 5,613
Albertson's, Inc. 1,100 40,769
American Stores Co. 1,200 30,300
Anheuser-Busch Companies, Inc. 2,200 94,463
Archer Daniels Midland Company 2,300 51,750
Avon Products, Inc. 600 43,538
Ball Corporation 100 2,975
Bemis Company, Inc. 200 9,188
Brown-Forman Corp. 300 14,625
Campbell Soup Company 2,000 103,750
Cardinal Health Inc. 500 31,125
Clorox Company 200 27,925
Colgate-Palmolive Co. 1,300 98,475
Comcast Corp. 1,500 34,031
Conagra Inc. 1,000 70,313
CPC International Corp. 600 57,563
Crown Cork & Seal Company, Inc. 600 30,338
Fleming Companies, Inc. 200 3,188
Fortune Brands, Inc. 800 28,350
General Mills, Inc. 700 48,388
Giant Food Inc. 300 10,069
Gillette Company 2,400 237,600
Great Atlantic & Pacific Tea Co., Inc. 200 5,488
H.J. Heinz Company 1,600 73,900
Hershey Foods Corp. 700 38,675
Kellogg Company 900 82,688
Kimberly-Clark Corporation 2,500 $ 126,719
Pepsico Inc. 6,700 256,694
Philip Morris Companies, Inc. 10,600 478,325
Pioneer Hi-Bred International 400 29,600
Procter & Gamble Company 3,000 456,375
Quaker Oats Company 600 30,713
Ralston Purina Group 500 45,125
Sara Lee Corporation 2,100 92,006
Seagram Company Ltd. 1,600 61,300
Supervalue Inc. 300 12,150
Sysco Corporation 800 29,850
*Tele Communications, Inc. 2,900 49,663
The Coca-Cola Company 10,900 754,825
*The Kroger Company 1,100 32,519
Time Warner Inc. 2,400 130,950
Tupperware 300 10,425
*U S West Media Group 2,700 59,569
Unilever, N.V. 700 152,600
UST Incorporated 800 23,250
Winn-Dixie Stores, Inc. 700 25,638
Wm. Wrigley Jr. Company 500 38,469
----------
TOTAL 4,178,146
----------
ENERGY (8.28%)
Amerada Hess Corporation 400 23,525
Amoco Company 2,200 206,800
Ashland, Inc. 300 15,938
Atlantic Richfield Company 1,400 104,738
Baker Hughes Inc. 700 30,844
Burlington Resource Inc. 500 23,625
Chevron Corp. 2,900 229,463
Dresser Industries, Inc. 800 33,400
Exxon Corporation 10,900 700,325
Halliburton Company 1,100 50,600
Helmerich & Payne, Inc. 100 6,731
Kerr-McGee Corporation 200 12,525
Louisiana Land & Exploration Co. 200 14,125
Mobil Corporation 3,400 260,100
Monterey Resources, Inc. 176 2,684
Occidental Petroleum Corporation 1,400 35,088
*ORYX Energy Company 500 12,344
Pennzoil Company 200 15,625
Phillips Petroleum Company 1,200 55,275
*Rowan Companies, Inc. 400 13,150
Royal Dutch Petroleum Co., ADR 9,400 525,813
*Santa Fe Energy Resources, Inc. 400 3,450
Schlumberger Limited 2,200 168,025
Sun Company, Inc. 300 10,744
Texaco Inc. 1,200 139,275
Union Pacific Resource Group 1,100 27,156
Unocal Corp. 1,100 $ 44,000
USX - U S Steel Group Inc. 400 14,625
*Western Atlas International Inc. 200 15,913
----------
TOTAL 2,795,906
----------
FINANCE (15.27%)
Allstate Corporation 1,900 150,100
American Express Company 2,100 175,875
American General Corporation 1,010 53,783
American International Group, Inc. 3,150 335,475
Aon Corporation 750 42,000
Banc One Corporation 2,500 140,313
Bank of New York Company, Inc. 1,700 82,556
BankAmerica Corporation 3,100 234,050
BankBoston Corporation 600 50,963
Bankers Trust New York Corporation 300 30,356
Barnett Banks Inc. 900 51,244
Beneficial Corporation 200 14,500
Charles Schwab Corporation 800 37,450
Chase Manhattan Corporation 1,900 215,769
CIGNA Corporation 300 59,850
Citicorp 2,000 271,500
Comerica, Inc. 500 37,813
Conseco Inc. 800 32,600
Corestates Financial Corp. 900 55,519
Countrywide Credit Industries, Inc. 500 17,625
Equifax, Inc. 700 23,756
Fannie Mae 4,600 217,638
Federal Home Loan Mortgage Corp. 3,000 108,188
Fifth Third Bancorp 650 41,072
First Bank System Inc. 600 53,400
First Chicago NBD Corporation 1,400 106,225
First Union Corporation 1,300 131,869
Fleet Financial Group Inc. 1,100 74,663
General Re Corporation 400 83,550
Golden West Financial Corporation 300 25,238
Green Tree Financial Corporation 600 28,275
H.F. Ahmanson & Company 400 21,275
Hartford Financial Services Group Inc. 500 43,563
Household International Inc. 500 64,750
J.P. Morgan & Company, Inc. 800 92,700
Jefferson-Pilot Corp. 300 21,319
KeyCorp 1,000 62,188
Lincoln National Corporation 500 35,563
Loews Corp. 500 54,063
Marsh & McLennan Companies Inc. 700 54,206
MBIA Incorporated 200 23,600
MBNA Corp. 1,500 67,500
Mellon Bank Corporation 1,100 55,481
Merrill Lynch & Co. 1,500 105,656
MGIC Investment Corp. 500 $ 26,281
Morgan Stanley, Dean Witter, Discover & Co. 2,555 133,658
National City Corp. 1,000 59,500
NationsBank Corp. 3,200 227,800
Norwest Corporation 1,600 100,900
PNC Bank Corp. 1,400 64,050
*Providian Financial Corporation 400 15,675
Republic New York Corporation 200 23,100
SAFECO Inc. 600 28,725
Salomon Inc. 500 31,719
St. Paul Companies, Inc. 400 31,375
SunAmerica, Inc. 600 36,300
Suntrust Banks Inc. 1,000 64,188
The Chubb Corporation 800 56,400
Torchmark Corporation 300 23,888
Transamerica Corporation 300 30,263
Travelers Group Inc. 2,800 201,425
UNUM Corporation 600 26,700
US Bancorp of Oregon 600 40,050
USF&G Corp. 500 12,281
Wachovia Corporation 700 45,150
Washington Mutual, Inc. 1,140 78,803
Wells Fargo & Company 400 109,975
----------
TOTAL 5,153,285
----------
HEALTHCARE (10.41%)
Abbott Laboratories Inc. 3,400 222,488
Aetna Inc. 700 79,756
Allergan Incorporated 300 9,581
*Alza Corp. 400 12,925
American Home Products Corporation 2,800 230,825
*Amgen Inc. 1,200 70,575
Bausch & Lomb Inc. 200 8,513
Baxter International Inc. 1,200 69,375
Becton, Dickinson & Company 500 26,813
*Beverly Enterprises, Inc. 400 6,150
Biomet, Inc. 500 9,969
*Boston Scientific Corp. 900 64,575
Bristol-Myers Squibb Company 4,400 345,125
C.R. Bard, Inc. 300 11,288
Columbia/HCA Healthcare Corporation 2,900 93,525
Eli Lilly & Company 2,400 271,200
Guidant Corp. 300 27,375
*Healthsouth Corporation 1,500 39,750
*Humana, Inc. 700 17,063
Johnson & Johnson 5,800 361,413
Mallinckrodt, Inc. 300 10,500
Manor Care, Inc. 300 9,900
Medtronic, Incorporated 1,000 87,250
Merck & Co., Inc. 5,300 550,869
Pfizer Inc. 5,700 $ 339,863
Pharmacia & Upjohn Inc. 2,200 83,050
Schering-Plough Corporation 3,200 174,600
*St. Jude Medical, Inc. 400 16,325
*Tenet Healthcare Corp. 1,300 38,919
U.S. Surgical Corporation 300 11,138
United Healthcare Corp. 800 45,600
Warner-Lambert Company 1,200 167,625
----------
TOTAL 3,513,923
----------
MISCELLANEOUS (1.60%)
Allied Signal Inc. 1,200 110,700
Cognizant Corp. 700 29,838
Corning Inc. 1,000 61,813
H & R Block, Inc. 500 19,156
Interpublic Group of Cos. Inc. 500 22,375
Minnesota Mining & Manufacturing Co. 1,800 170,550
Service Corporation International 1,000 34,000
Tenneco Inc. 700 32,638
Textron Inc. 700 49,044
Whitman Corp. 400 10,100
----------
TOTAL 540,214
----------
TECHNOLOGY (14.52%)
*3COM Corporation 1,500 82,031
Adobe Systems, Inc. 300 11,213
*Advanced Micro Devices, Inc. 600 21,038
*Amdahl Corporation 500 5,906
*Andrew Corporation 400 10,425
*Apple Computer, Inc. 600 10,500
*Applied Materials Inc. 800 73,500
Autodesk, Inc. 200 8,475
Automatic Data Processing, Inc. 1,300 64,350
*Bay Networks 900 27,450
*Cabletron Systems Inc. 700 23,713
*Ceridian Corp. 400 17,500
*Cisco Systems Incorporated 2,900 230,731
*CommScope, Inc. 200 3,200
*Compaq Computer Corporation 3,000 171,375
Computer Associates International Inc. 1,600 108,900
*Computer Sciences Corp. 300 24,431
*Data General Corporation 200 6,038
*Dell Computer Corp. 1,400 119,700
*Digital Equipment Corporation 700 28,831
*DSC Communications Corp. 500 14,750
Eastman Kodak Company 1,400 93,800
EG&G, Inc. 200 4,100
*EMC Corporation 1,100 55,550
First Data Corporation 2,000 87,250
*General Semiconductor, Inc. 150 2,288
Harris Corporation 200 $ 17,375
Hewlett-Packard Company 4,500 315,281
Ikon Office Solutions 600 17,513
Intel Corp. 7,200 661,050
*Intergraph Corp. 200 1,925
International Business Machines Corp. 4,300 454,725
*LSI Logic Corp. 600 18,938
Lucent Technologies Inc. 2,800 237,825
*Micron Technology 900 43,819
*Microsoft Corporation 5,200 735,762
Motorola, Inc. 2,600 208,813
*National Semiconductor Corporation 600 18,900
Northern Telecom Limited 1,100 115,019
*Novell, Inc. 1,500 11,367
*Oracle Corporation 2,900 157,869
*Parametric Technology Company 600 29,400
Perkin-Elmer Corporation 200 16,325
Polaroid Corporation 200 11,900
Raytheon Company 1,000 55,875
Scientific-Atlanta, Inc. 300 6,300
*Seagate Technology Inc. 1,100 45,169
Shared Medical Systems Corp. 100 5,400
*Silicon Graphics 800 20,000
*Sun Microsystems Inc. 1,600 73,100
*Tandem Computers Inc. 500 14,688
Tektronix, Inc. 100 6,175
*Tellabs Inc. 800 47,900
Temple-Inland Inc. 200 13,463
Texas Instruments Incorporated 800 92,000
*Unisys Corporation 800 7,700
W.W. Grainger, Inc. 200 19,200
Xerox Corporation 1,400 115,150
----------
TOTAL 4,902,971
----------
TRANSPORTATION (1.22%)
*AMR Corporation 400 43,025
Burlington Northern Santa Fe 700 67,594
Caliber System, Inc. 200 7,788
CSX Corporation 1,000 61,750
Delta Air Lines Inc. 300 26,663
*Federal Express Corp. 500 32,281
Norfolk Southern Corporation 500 55,375
Ryder System, Inc. 300 10,744
Southwest Airlines Co. 600 17,513
Union Pacific Corporation 1,100 78,856
*USAir Group, Inc. 300 11,494
----------
TOTAL 413,083
----------
UTILITIES (2.82%)
American Electric Power Co. Inc. 800 35,800
Baltimore Gas & Electric Co. 600 $ 16,688
Carolina Power & Light Company 700 24,938
Central & South West Corporation 900 18,056
Cinergy Corporation 700 23,538
Coastal Corp. 500 27,188
Columbia Gas System Inc. 200 13,750
Consolidated Edison Co. of New York 1,000 31,625
Consolidated Natural Gas Company 400 23,150
Dominion Resources Inc. 800 29,400
DTE Energy Company 600 17,963
Duke Energy Corp. 1,531 77,603
Eastern Enterprises 100 3,581
Edison International 1,800 45,450
Enron Corp 1,300 49,319
ENSERCH Corporation 300 6,675
Entergy Corporation 1,000 27,313
FPL Group, Inc. 800 38,300
GPU, Inc. 500 17,344
Houston Industries Incorporated 1,000 20,938
*Niagara Mohawk Power Corporation 600 5,588
Nicor Inc. 200 7,325
Noram Energy Corporation 600 9,600
Northern States Power Company 300 15,413
Ohio Edison Company 700 15,575
ONEOK, Inc. 100 3,500
P P & L Resources, Inc. 700 14,306
Pacific Enterprises 400 13,375
PacifiCorp 1,300 29,006
PECO Energy Company 1,000 23,500
Peoples Energy Corporation 200 7,675
PG&E Corp. 1,800 44,663
Public Service Enterprise Group, Inc. 1,000 24,750
Sonat Inc. 400 19,950
Southern Company 3,000 65,813
Texas Utilities Company 1,000 35,438
UNICOM Corp. 900 20,419
Union Electric Company 400 15,400
Williams Companies Inc. 700 31,996
----------
TOTAL 951,911
----------
TOTAL COMMON STOCK $32,163,002
----------
MARKET
MONEY MARKET INSTRUMENT (4.73%) SHARES/PAR VALUE
- ------------------------------- ---------- ------
FINANCE SERVICES (4.43%)
+Associates Corp. of N. America, 5.85%, 8/01/97 800,000 $ 800,000
+BAT Capital Corporation, 5.48%, 8/27/97 700,000 697,230
----------
TOTAL 1,497,230
GOVERNMENT (0.29%)
+U.S. Treasury, 5.08% 9/4/97 100,000 99,520
----------
TOTAL MONEY MARKET INVESTMENTS $ 1,596,750
----------
TOTAL INDEX 500 STOCK PORTFOLIO $33,759,752
----------
* Non-Income Producing.
+ Partially held by the custodian in a segregated account as collateral for
open futures positions. Information regarding open futures contracts as of
July 31, 1997 is summarized below:
NUMBER OF EXPIRATION UNREALIZED
ISSUER CONTRACTS DATE APPRECIATION
- ------ --------- ---------- -----------
S&P 500 STOCK INDEX 2 SEP-97 $114,850
S&P 500 STOCK INDEX 1 Dec-97 24,750
--------
TOTAL 139,600
========
<PAGE>
MASON STREET FUNDS
GROWTH STOCK FUND
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
SHARES/PAR VALUE
---------- ------
COMMON STOCK (91.31%)
- ---------------------
BASIC MATERIALS (6.27%)
Avery Dennison Corporation 15,000 $ 661,875
E.I. du Pont de Nemours & Co. 11,000 736,313
Ecolab, Inc. 14,800 690,975
----------
TOTAL 2,089,163
----------
CAPITAL GOODS (5.99%)
*American Standard Companies, Inc. 10,000 496,875
Boeing Company 11,400 670,463
General Electric Company 11,800 828,213
----------
TOTAL 1,995,551
----------
COMMUNICATION SERVICES (0.74%)
MCI Communications Corporation 7,000 247,188
----------
TOTAL 247,188
----------
CONSUMER CYCLICAL (16.86%)
*Borg Warner Automotive 13,800 769,350
*Federated Department Stores, Inc. 9,300 407,456
*Kohls Department Stores 13,800 869,400
McDonald's Corporation 4,800 258,000
New York Times Company 13,300 668,325
Newell Co. 17,500 733,906
Tribune Company 13,300 704,069
Wal-Mart Stores, Inc. 11,000 413,188
Walgreen Company 14,000 791,000
----------
TOTAL 5,614,694
----------
CONSUMER STAPLES (11.34%)
Campbell Soup Company 11,600 601,750
Hershey Foods Corp 11,700 646,425
Pepsico Inc. 18,000 689,625
Philip Morris Companies 12,300 555,038
Procter & Gamble Company 4,000 608,500
Unilever N.V. 3,100 675,800
----------
TOTAL 3,777,138
----------
ENERGY (9.67%)
Amoco Company 6,800 639,200
Diamond Offshore Drilling Inc 4,500 419,625
Exxon Corporation 11,000 706,750
Schlumberger Limited 10,600 809,575
Tosco Corporation 20,600 645,038
----------
TOTAL 3,220,188
----------
FINANCE (13.57%)
Banc One Corporation 5,200 $ 291,850
BankAmerica Corporation 3,800 286,900
Chase Manhattan Corporation 2,600 295,263
Citicorp 5,400 733,050
Franklin Resources 11,500 976,781
Morgan Stanley, Dean Witter, Discover & Co. 16,800 878,850
Travelers Group Inc 12,300 884,831
Usf&g Corp 7,000 171,938
----------
TOTAL 4,519,463
----------
HEALTHCARE (8.20%)
Eli Lilly & Company 7,100 802,300
*Healthsouth Corp 4,100 108,650
*Horizon/cms Healthcare Corp 5,700 121,838
Johnson & Johnson 4,500 280,406
Merck & Co., Inc. 6,900 717,169
United Healthcare Corp. 12,300 701,100
----------
TOTAL 2,731,463
----------
MISCELLANEOUS (2.27%)
Allied Signal Inc. 8,200 756,450
----------
TOTAL 756,450
----------
TECHNOLOGY (12.89%)
Cisco Systems, Inc. 3,200 254,600
*Fiserv 15,700 753,600
Hewlett-Packard Company 11,000 770,688
Intel Corp. 5,200 477,425
International Business Machines 6,800 719,100
Lucent Technologies, Inc. 7,000 594,563
*Microsoft Corporation 5,100 721,650
----------
TOTAL 4,291,626
----------
TRANSPORTATION (2.66%)
*AMR Corporation 5,700 613,106
*Midwest Express Holdings, Inc. 11,000 274,313
----------
TOTAL 887,419
----------
UTILITIES (0.85%)
Sonat Inc. 5,600 279,295
----------
TOTAL COMMON STOCK $30,409,638
----------
MONEY MARKET INVESTMENTS (8.69%)
- --------------------------------
GOVERNMENT (0.29%)
+U.S. Treasury Bill, 4.85%, 9/04/97 100,000 $ 99,542
----------
FINANCE SERVICES (8.40%)
+Associates Corp. of N.
America, 5.85%, 8/01/97 1,800,000 1,800,000
+Bat Capital Corporation, 5.48%, 8/27/97 1,000,000 996,042
----------
TOTAL 2,796,042
----------
TOTAL MONEY MARKET INVESTMENTS $ 2,895,584
----------
TOTAL GROWTH STOCK PORTFOLIO $33,305,222
----------
* Non-Income Producing.
+ Partially held by the custodian in a segregated account as collateral for
open futures positions. Information regarding open futures contracts as of
July 31, 1997 is summarized below:
NUMBER OF EXPIRATION
ISSUER CONTRACTS DATE
- ------ --------- ----------
S&P 500 STOCK INDEX
September 1997 2 9/20/97
December 1997 1 12/20/97
<PAGE>
MASON STREET FUNDS
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
SHARES/PAR VALUE
---------- ------
COMMON STOCK (96.61%)
- ---------------------
BASIC MATERIALS (5.69%)
Albemarle Corporation 23,700 $ 570,281
Allegheny Teledyne Inc. 8,700 270,788
Dow Chemical Company 2,500 237,500
E.I. Du Pont De Nemours & Co 4,400 294,525
Union Carbide Corporation 8,500 470,688
-----------
TOTAL 1,843,782
-----------
CAPITAL GOODS (7.55%)
Boeing Company 12,600 741,038
Cooper Industries Inc. 14,200 788,988
Johnson Controls Inc. 6,600 295,763
Tyco International LTD 3,224 261,144
Waste Management Inc. 11,200 358,400
-----------
TOTAL 2,445,333
-----------
COMMUNICATION SERVICES (5.55%)
Bell Atlantic Corporation 3,200 232,200
GTE Corporation 6,300 292,950
MCI Communications Corporation 7,400 261,313
Sprint Corp. 6,000 297,000
*Worldcom Inc. 20,500 716,219
-----------
TOTAL 1,799,682
-----------
CONSUMER CYCLICAL (7.60%)
*Circuit City Stores, Inc. - CarMax Group 7,000 99,313
Circuit City Stores-Circuit City Group 8,300 300,875
*Federated Department Stores, Inc. 7,600 332,975
*Fruit Of The Loom, Incorporated 14,100 385,988
General Motors Corporation 3,500 211,531
General Motors Corporation 4,500 278,438
*Lear Corp 1,100 52,663
*Toys R Us 23,500 800,469
-----------
TOTAL 2,462,252
-----------
CONSUMER STAPLES (11.84%)
Anheuser Busch Companies, Inc. 15,500 665,531
General Mills, Inc. 8,200 566,825
Pepsico Inc. 10,000 383,125
Philip Morris Companies, Inc 4,600 207,575
Procter & Gamble Company 2,900 441,163
Ralston Purina Group 3,500 315,875
*Tele Communications, Inc. 41,000 702,125
Time Warner Inc. 10,200 556,538
-----------
TOTAL 3,838,757
-----------
ENERGY (9.15%)
Anadarko Petroleum Corporation 4,100 $ 286,488
British Petroleum Co. Ltd 5,200 428,675
Exxon Corporation 7,100 456,175
*Input/Output, Inc. 6,300 136,238
Mobil Corporation 8,200 627,300
Tosco Corporation 22,300 698,269
Valero Energy Corporation 7,700 331,100
-----------
TOTAL 2,964,245
-----------
FINANCE (10.51%)
Crestar Financial Corp. 6,900 325,594
Fannie Mae 10,100 477,856
First Chicago NBD Corporation 4,600 349,025
First Hawaiian, Inc. 700 26,250
Marsh & Mclennan Companies, Inc. 7,400 573,038
MBIA Incorporated 2,100 247,800
Nationsbank Corp. 9,800 697,638
*Providian Financial Corp. 1,700 66,619
Salomon Inc 4,000 253,750
Washington Mutual, Inc. 5,600 387,100
-----------
TOTAL 3,404,670
-----------
HEALTHCARE (9.42%)
*Alza Corporation 9,100 294,044
American Home Products Corporation 7,900 651,256
Columbia/Hca Healthcare Corp. 1,500 48,375
*Humana, Inc. 11,800 287,625
Schering-Plough Corporation 5,000 272,813
United Healthcare Corp. 11,100 632,700
Warner-Lambert Company 6,200 866,063
-----------
TOTAL 3,052,876
-----------
MISCELLANEOUS (3.72%)
Mirage Resorts, Inc. 18,500 494,875
AlliedSignal Inc. 7,700 710,325
-----------
TOTAL 1,205,200
-----------
SERVICES (1.14%)
*First USA Paymentech, Inc. 200 5,750
International Game Technology 21,900 364,088
-----------
TOTAL 369,838
-----------
TECHNOLOGY (17.86%)
*Bay Networks, Inc. 13,500 $ 411,750
*Cabletron Systems, Inc. 12,900 436,988
*Cisco Systems Incorporated 2,900 230,731
Commscope Inc. 7,933 126,928
*Cypress Semiconductor Corporation 14,000 214,375
*EMC Corporation 7,200 363,600
First Data Corporation 10,800 471,150
General Semiconductor Inc. 5,950 90,738
International Business Machines 4,800 507,600
Intel Corporation 3,800 348,888
Nextlevel Systems, Inc. 23,800 474,513
Perkin Elmer Corporation 2,300 187,738
Quantum Corporation 8,400 244,125
Sensormatic Electronics Corp. 18,700 250,113
*Sun Microsystems Inc. 16,000 731,000
Symbol Technologies Inc. 5,500 178,406
Temple-Inland Inc 7,700 518,306
-----------
TOTAL 5,786,949
-----------
TRANSPORTATION (3.05%)
CNF Transportation Inc. 2,100 73,238
*Coltec Industries Inc. 17,200 378,400
CSX Corporation 8,600 531,050
Union Pacific Corporation 100 7,169
-----------
TOTAL 989,857
-----------
UTILITIES (3.53%)
Dominion Resources Inc. 3,900 143,325
Duke Energy Corp. 2,800 141,925
Enron Corp 6,000 227,625
New England Electric Systems 8,900 332,081
Northern States Power Company 5,900 303,100
-----------
TOTAL 1,148,056
-----------
TOTAL COMMON STOCK $31,311,497
-----------
MONEY MARKET INVESTMENTS (3.39%)
- --------------------------------
FINANCE SERVICES (3.39%)
Associates Corp of N. America, 5.85%, 8/01/1997 600,000 $ 600,000
Bat Capital Corporation, 5.48%, 8/27/1997 500,000 498,021
-----------
TOTAL MONEY MARKET INSTRUMENTS $ 1,098,021
-----------
TOTAL GROWTH & INCOME PORTFOLIO $32,409,518
===========
* Non-Income Producing.
<PAGE>
MASON STREET FUNDS
ASSET ALLOCATION PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
SHARES/PAR VALUE
COMMON STOCK (59.19%) ---------- ------
- ---------------------
DOMESTIC COMMON STOCK (46.09%)
Basic Materials (2.20%)
Avery Dennison Corp. 4,800 $ 211,800
Du Pont E. I. De Nemours & Co 3,600 240,975
Ecolab, Inc. 4,700 219,431
-----------
TOTAL 672,206
-----------
CAPITAL GOODS (2.87%)
*American Std Cos., Inc. 3,300 163,969
Boeing Co. 3,600 211,725
General Electric Co. 3,800 266,713
*Jabil Circuit Inc. 2,200 107,113
Kaydon Corp. 1,600 101,300
Omniquip Intl., Inc. 1,000 25,000
-----------
TOTAL 875,820
-----------
COMMUNICATION SERVICES (0.25%)
MCI Communications Corp. 2,200 77,688
-----------
CONSUMER CYCLICAL (7.14%)
*Blyth Inds. Inc. 3,600 129,375
*Borg-Warner Automotive Inc. 4,400 245,300
Doubletree Corp. 1,500 63,000
*Federated Dept Stores Inc. 2,900 127,056
*Galileo International, Inc. 700 18,463
*Jones Apparel Group Inc. 1,400 72,713
*Kohls Corp. 4,400 277,200
McDonald's Corp. 1,500 80,625
New York Times Co Cl A 4,300 216,075
Newell Co. 5,600 234,850
*O'Reilly Automotive Inc. 2,400 105,900
Tribune Co. 4,300 227,631
Wal Mart Stores Inc. 3,500 131,469
Walgreens Co. 4,400 248,600
-----------
TOTAL 2,178,257
-----------
CONSUMER STAPLES (4.65%)
Campbell Soup Co. 3,700 191,938
Cardinal Health Inc. 1,600 99,600
Hershey Foods Corp. 3,700 204,425
Mondavi Robert Corp. Cl A 2,400 112,200
Pepsico Inc. 5,700 218,381
Philip Morris Cos Inc. 3,900 175,988
Procter & Gamble Co. 1,300 197,763
Unilever N.V. 1,000 218,000
-----------
TOTAL 1,418,295
-----------
ENERGY (5.11%)
Amoco Corp. 2,100 197,400
*Bj Services Co. 1,800 117,000
Diamond Offshore Drilling Inc. 1,400 130,550
*EVI Inc. 1,600 78,200
Exxon Corp. 3,400 $ 218,450
*Global Inds., Ltd. 3,300 92,606
*Nabors Inds., Inc. 2,700 84,375
*Pride International, Inc. 3,400 89,888
*Santa Fe International Corp. 300 12,375
Schlumberger Ltd. 3,400 259,675
Tosco Corp. 6,600 206,663
Transocean Offshore Inc. 900 73,519
-----------
TOTAL 1,560,701
-----------
FINANCE (6.07%)
*BA Merchant Svcs., Inc. Cl A 2,500 47,656
Banc One Corp. 1,600 89,800
Bankamerica Corp. 1,200 90,600
Chase Manhattan Corp. 800 90,850
Citicorp 1,700 230,775
Financial Sec Assurn Hldgs Ltd. 2,100 87,675
First Comwlth Inc. 3,500 60,375
Franklin Res Inc. 3,700 314,258
Investors Finl Services Corp. 2,300 102,350
*LaSalle Partners, Inc. 100 2,988
Money Store Inc. 3,300 118,388
Morgan S D Witter Discover & Co. 5,400 282,488
Travelers Group Inc. 3,900 280,556
USF&G Corp. 2,200 54,038
-----------
TOTAL 1,852,797
-----------
MISCELLANEOUS (1.80%)
*ABR Information Svcs Inc. 1,300 35,425
Allied - Signal Inc. 2,600 239,850
*Interim Svcs Inc. 1,300 59,231
*Robert Half Intl Inc. 2,500 137,656
Service Corp Intl. 2,300 78,200
-----------
TOTAL 550,362
-----------
HEALTHCARE (5.78%)
American Homepatient Inc. 4,000 80,000
*Capstone Pharmacy Svcs., Inc. 6,700 77,888
*Healthsouth Corp. 1,500 39,750
*Horizon/cms Healthcare Corp. 1,900 40,613
Johnson & Johnson 1,400 87,238
Lilly Eli & Co. 2,300 259,900
*Lincare Holdings, Inc. 1,800 88,200
*Medcath Inc. 4,800 81,000
Merck & Co., Inc. 2,200 228,663
Meridian Diagnostics Inc. 6,500 52,000
Patterson Dental Co. 2,600 90,350
*Phycor Inc. 3,200 107,200
*Quorum Health Group Inc. 2,900 103,313
*Spine-Tech Inc. 1,300 77,025
*Sybron Intl Corp. 3,100 126,906
United Healthcare Corp. 3,900 222,300
-----------
TOTAL 1,762,346
-----------
TECHNOLOGY (8.16%)
A D C Telecommunications 3,200 $ 129,200
American Mgmt Sys. Inc. 3,100 79,631
Avx Corp New 2,500 79,063
Cambridge Tech Partners Mass 2,300 87,113
*Cbt Group Pub Ltd. 500 33,125
*Cisco System Inc. 900 71,606
*Fiserv Inc. 5,000 240,000
*Gasonics Intl Corp. 4,300 80,088
Great Plains Software 1,700 45,475
HBO & Co. 1,100 85,113
Hewlett Packard Co. 3,500 245,219
IBM 2,200 232,650
Intel Corp. 1,600 146,900
Lucent Technologies Inc. 2,000 169,875
*Microsoft Corp. 1,600 226,400
*Pmc-sierra Inc. 3,200 104,800
Sterling Comm Inc. 1,800 67,838
*Sterling Software Inc. 1,900 64,600
Teleflex Inc. 2,200 69,575
*Tellabs Inc. 1,400 83,825
Transaction Sys Architects Cl A 2,600 96,200
*Trident Intl Inc. 3,500 52,500
-----------
TOTAL 2,490,796
-----------
TRANSPORTATION (1.77%)
*AMR Corp. 1,800 193,613
*Heartland Express Inc. 2,700 66,825
*Knight Trans., Inc. 2,200 50,050
Mark VII Inc. 2,200 69,300
Midwest Express Hldgs Inc. 3,500 87,281
*Swift Transportation Co. 2,100 60,769
*Wisconsin Cent Transn Corp. 300 9,394
-----------
TOTAL 537,232
-----------
UTILITIES (0.29%)
Sonat Inc. 1,800 89,775
-----------
TOTAL DOMESTIC COMMON STOCK $14,066,275
-----------
FOREIGN COMMON STOCK (13.09%)
- -----------------------------
BASIC MATERIALS (0.80%)
Koninklijke Hoogovens 4,000 $ 242,800
-----------
CAPITAL GOODS (2.76%)
British Aerospace 8,900 194,340
City Development 23,000 195,442
Schneider Sa 3,500 202,963
Sumitomo Electric Ind. 15,000 249,577
-----------
TOTAL 842,322
-----------
COMMUNICATION SERVICES (1.55%)
Philippine Long Distance Tel. 6,600 $ 221,513
TELEBRAS 1,700 252,238
-----------
TOTAL 473,751
-----------
CONSUMER CYCLICAL (1.83%)
Nintendo C., Inc. 2,800 283,783
Volkswagen Ag 360 275,571
-----------
TOTAL 559,354
-----------
ENERGY (1.31%)
Elf Aquitaine 1,950 222,632
Smedvig Asa-a 6,100 178,493
-----------
TOTAL 401,125
-----------
FINANCE (.63%)
HSBC Holdings Plc. 5,500 191,797
-----------
TOTAL 191,797
-----------
HEALTHCARE (1.60%)
Glaxo Welcome Plc 10,900 230,516
Novartis Ag - Reg Shs. 160 256,804
-----------
TOTAL 487,320
-----------
MISCELLANEOUS (.62%)
*KGHM Polska Miedz 16,000 188,000
-----------
TOTAL 188,000
-----------
TECHNOLOGY (1.99%)
Ericsson Lm-b 5,700 257,338
Philips Electronics 4,300 349,407
-----------
TOTAL 606,745
-----------
TOTAL FOREIGN COMMON STOCK $ 3,993,214
-----------
TOTAL COMMON STOCK $18,059,489
-----------
*Preferred Stock (3.44%)
K-III Communications Corp. 5,000 $ 508,750
Sinclair Capital 5,000 540,000
-----------
1,048,750
-----------
TOTAL PREFERRED STOCK $ 1,048,750
-----------
BONDS (31.49%)
- --------------
CORPORATE BONDS ( 8.58%)
- ------------------------
BROADCASTING (1.74%)
- --------------------
TV Azteca S A De C. V. 10.50% 2/15/07 500,000 $ 530,625
-----------
CONSTRUCTION MACHINERY (1.73%)
- ------------------------------
Bufete Indl S. A. 11.375% 7/15/99 500,000 528,750
-----------
CONTAINERS (1.80%)
- ------------------
VICAP S.A. DE C.V. 11.375% 5/15/07 500,000 548,750
-----------
FINANCE COMPANIES (1.66%)
- -------------------------
Olympic Finl Ltd. 11.50% 3/15/07 500,000 507,500
-----------
LEISURE RELATED (1.65%)
- -----------------------
Trump Atlantic 11.25%, 5/1/06 500,000 $ 501,250
-----------
TOTAL CORPORATE BONDS $ 2,616,875
-----------
GOVERNMENT AND AGENCY RELATED BONDS (8.95%)
- -------------------------------------------
FEDERAL GOVERNMENT AND AGENCIES (8.95%)
- ---------------------------------------
Federal National Mortgage
Assoc., 6%, 05/01/2011 1,410,413 $ 1,380,443
US Treasury, 0.00% 2/15/19 PO 1,200,000 301,320
US Treasury, 6.00% 2/15/26 1,100,000 1,050,155
-----------
TOTAL GOVERNMENT AND AGENCY RELATED BONDS $ 2,731,918
-----------
MORTGAGE/ASSET BACKED SECURITIES (13.96%)
- -----------------------------------------
AUTO RELATED (0.42%)
- --------------------
Team Fleet Financing Co 144a 7.35% 5/15/03 125,000 $ 129,180
-----------
COMMERCIAL MORTGAGES (13.54%)
- -----------------------------
Asset Securitization Corporation
1.25% 11/13/26 IO 19,217,243 852,765
First Union-Lehman Brothers Commercial
Mortgage Trust, 1.307%, 4/18/27 IO 6,988,894 559,112
LB Commercial Conduit Mortgage
Trust 1.248% 10/25/26 IO 3,972,126 263,773
Merrill Lynch Mortgage Investors
7.12% 6/18/07 1,500,000 1,544,063
Merrill Lynch Mortgage Investors
8.154% 7/25/04 500,000 517,031
Midland Realty Accept Corp 144a
1.389% 1/25/29 IO 4,916,871 393,350
-----------
TOTAL 4,130,094
-----------
TOTAL MORTGAGE/ASSET BACKED SECURITIES $ 4,259,274
TOTAL BONDS $ 9,608,067
-----------
MONEY MARKET INVESTMENTS (5.89%)
- --------------------------------
FINANCE SERVICES (5.56%)
Associates Corp of N.A., 5.85%, 08/01/97 800,000 $ 800,000
Bat Capital Corporation, 5.48%, 08/27/97 900,000 896,438
-----------
TOTAL 1,696,438
GOVERNMENT (0.33%)
US Treasury, 5.09%, 09/04/97 100,000 99,520
-----------
TOTAL MONEY MARKET INSTRUMENTS $ 1,795,958
-----------
TOTAL MSF ASSET ALLOCATION PORTFOLIO $30,512,264
-----------
* Non-Income Producing.
<PAGE>
MASON STREET FUNDS
AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
SHARES/PAR VALUE
COMMON STOCK (93.78%) ---------- ------
- ---------------------
BASIC MATERIALS (1.73%)
Cambrex Corporation 12,800 $ 611,200
----------
CAPITAL GOODS (5.63%)
*Jabil Circuit Inc.
Kaydon Corporation 11,400 721,763
*Kaynar Technologies, Inc. 10,500 242,813
Kent Electronics 12,500 487,500
*Microchip Technology Inc. 5,700 212,325
Omniquip International Inc. 13,000 325,000
----------
TOTAL 1,989,401
----------
CONSUMER CYCLICAL (15.50%)
*Blyth Industries, Inc. 19,800 711,563
*CUC International, Inc. 21,300 524,513
*Electronic Arts Inc. 6,800 227,800
Fastenal Co. 12,100 676,844
*Jones Apparel Group Inc. 5,300 275,269
*K & G Mens' Center, Inc. 26,850 610,838
*Kohls Department Stores 11,300 711,900
*O'Reilly Automotive, Inc. 13,000 573,625
*Pameco Corp. 1,700 36,763
*Regal Cinemas Inc. 17,700 568,613
*Tower Automotive, Inc. 12,300 557,344
----------
TOTAL 5,475,072
----------
CONSUMER STAPLES (4.05%)
Cardinal Health, Inc. 8,800 547,800
Clear Channel Communications 4,800 298,800
*Robert Mondavi Corporation 12,500 584,375
----------
TOTAL 1,430,975
----------
ENERGY (11.24%)
*BJ Services Company 9,000 585,000
*EVI Inc. 6,200 303,025
*Global Industries Ltd 22,400 628,600
*Nabors Industries Inc. 22,000 687,500
*Pride Petroleum Services 23,100 610,706
Tosco Corporation 16,800 526,050
Transocean Offshore, Inc. 7,700 628,994
----------
TOTAL 3,969,875
----------
FINANCE (1.69%)
Investors Financial Services 13,000 578,500
LaSalle Partners Inc. 600 17,925
----------
TOTAL 596,425
----------
MISCELLANEOUS (8.09%)
*ABR Information Services Inc. 15,800 $ 430,550
Cintas Corp. 9,000 589,500
Information Management 3,100 97,650
*Interim Services Inc. 12,300 560,419
*Learning Tree International Inc. 6,700 273,025
*Robert Half International, Inc. 13,700 754,356
Sykes Enterprises Inc. 6,000 151,125
----------
TOTAL 2,856,625
----------
HEALTHCARE (10.22%)
*CRA Managed Care Inc. 12,800 660,800
Lincare Holdings Inc. 12,500 612,500
*Patterson Dental Co. 14,100 489,975
*PhyCor, Inc. 17,600 589,600
*Quorum Health Group, Inc. 15,500 552,188
*Sybron Intl Corp.-Wisconsin 17,200 704,125
----------
TOTAL 3,609,188
----------
TECHNOLOGY (31.32%)
*ADC Telecommunications 17,800 718,675
*Altera Corporation 8,500 513,188
AVX Corp. 9,100 287,788
Cambridge Technology Partners 18,700 708,263
Ciena Corp. 9,500 533,188
*CBT Group PLC-ADR 9,600 636,000
Cypress Semiconductor 12,500 191,406
Danka Business Systems Plc 15,200 745,750
First Data Corporation 14,100 615,113
Great Plains Software, Inc. 13,300 355,775
HBO & Co. 9,100 704,113
National Data Corporation 10,100 410,313
Paychex, Inc. 17,400 702,525
*Peoplesoft, Inc. 12,000 702,000
*Saville Systems PLC-ADR 15,000 956,250
*Sterling Commerce, Inc. 16,500 621,844
*Tellabs Inc. 10,700 640,663
*Transaction Systems Architects 17,400 643,800
*Trident International, Inc. 25,000 375,000
----------
TOTAL 11,061,654
----------
TRANSPORTATION (4.31%)
Galileo International 3,800 100,225
*Heartland Express Incorporated 18,400 455,400
*Knight Transportation, Inc. 18,700 425,425
*Swift Transportation Co., Inc. 15,300 442,744
*Wisconsin Central Transportation 3,000 93,929
----------
TOTAL 1,517,723
----------
TOTAL COMMON STOCK $33,118,138
----------
MONEY MARKET INVESTMENTS (6.22%)
- --------------------------------
FINANCE SERVICES (6.22%)
Associates Corp. of N.A., 5.85%, 08/01/97 1,500,000 $ 1,500,000
BAT Capital Corp., 5.48%, 08/27/97 700,000 697,230
----------
TOTAL MONEY MARKET INSTRUMENTS $ 2,197,230
----------
TOTAL AGGRESSIVE GROWTH PORTFOLIO $35,315,368
----------
* Non-Income Producing.
<PAGE>
MASON STREET FUNDS
HIGH YIELD BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JULY 31, 1997
MARKET
SHARES/PAR VALUE
---------- ------
BONDS (70.86%)
- --------------
AUTO RELATED (2.65%)
Speedy Muffler King Inc., 10.875%, 10/1/06 750,000 $ 742,500
----------
BROADCASTING (7.61%)
Azteca Hldgs S.A. De C.V., 11%, 6/15/02 (144a) 500,000 524,375
Citadel Broadcasting, 10.25%, 7/1/07 (144a) 250,000 268,125
Katz Media Corp., 10.50%, 1/15/07 750,000 810,000
TV Azteca S.A. De C.V., 10.50%, 2/15/07 (144a) 500,000 530,625
----------
TOTAL 2,133,125
----------
CABLE TELEVISION (5.29%)
Adelphia Communications Corp., 9.50%, 2/15/04 PIK 916,000 911,420
+Marcus Cable, 14.25%, 12/15/05 695,000 573,375
----------
TOTAL 1,484,795
----------
CONSUMER PRODUCTS (3.27%)
+Hedstrom Holdings Inc., 12%, 6/1/09 (144a) 650,000 399,750
Riddell Sports Inc., 10.50%, 7/15/07 (144a) 500,000 518,750
----------
TOTAL 918,500
----------
CONSUMER STAPLES (1.85%)
North Atlantic Trading Inc., 11%, 6/15/04 (144a) 500,000 520,000
----------
CONTAINERS (1.96%)
VICAP, S.A. De C.V., 11.375%, 5/15/07 (144a) 500,000 548,750
----------
FINANCE COMPANIES (2.71%)
Olympic Financial Ltd., 11.50%, 3/15/07 750,000 761,250
----------
FOOD RETAIL & SERVICES (2.92%)
Fleming Companies, Inc., 10.625%, 7/31/07 (144a) 500,000 512,500
+Nebco Evans Holdings, 12.375%, 8/15/04 (144a) 500,000 305,000
----------
TOTAL 817,500
----------
LEISURE RELATED (11.36%)
Casino America Inc., 12.50%, 8/1/03 500,000 531,250
Decisionone Company, 9.75%, 8/1/07 200,000 205,000
+Decisionone Holdings, 11.50%, 8/1/08 200,000 119,500
Station Casinos Inc., 9.75%, 4/15/07 (144a) 750,000 742,500
Trump Atlantic, 11.25%, 5/1/06 1,000,000 1,002,500
Trump Hotels & Casino Resorts, 15.50%, 6/15/05 500,000 585,000
----------
TOTAL 3,185,750
----------
MISCELLANEOUS - BASIC MATERIALS (2.14%)
Cemex S. A., 12.75%, 7/15/06 500,000 598,750
----------
OIL - GAS PRODUCERS (1.80%)
Belden & Blake Corp., 9.875%, 6/15/07 (144a) 500,000 505,000
----------
PAPER (3.82%)
Grupo Industrial Durango S.A.
De C.V., 12.625%, 8/1/03 500,000 $ 573,125
Indah Kiat Finance International, 10%, 7/1/07 (144a) 500,000 498,750
----------
TOTAL 1,071,875
----------
PROFESSIONAL SERVICES (1.75%)
Kinder-Care Learning Center, 9.50%, 2/15/09 500,000 490,000
----------
RAILROAD (2.19%)
+TFM S.A. De C. V., 11.75%, 6/15/09 (144a) 1,000,000 615,000
----------
SOAPS AND TOILETRIES (1.91%)
Revlon Worldwide Corp., 0%, 3/15/01 (144a) 750,000 536,250
----------
TELECOMMUNICATIONS (9.22%)
ITC Deltacom Inc., 11%, 6/1/07 (144a) 750,000 783,750
+Nextel Communications, 9.75%, 08/15/04 500,000 410,625
Paging Network Inc., 10%, 10/15/08 1,000,000 1,020,000
+Telewest PLC, 11%, 10/1/07 500,000 372,500
----------
TOTAL 2,586,875
----------
TRUCKING AND SHIPPING (6.59%)
Greyhound Lines Inc., 11.50%, 4/15/07 (144a) 1,250,000 1,346,875
Coach USA Inc., 9.375%, 7/1/07 (144a) 500,000 501,250
----------
TOTAL 1,848,125
----------
UTILITIES (1.82%)
Companhia De Saneamento Basico, 10%, 7/28/05 (144a) 250,000 255,625
Espirito Santo Centrais Electric,
10%, 7/15/07 (144a) 250,000 253,750
----------
TOTAL 509,375
----------
TOTAL BONDS $19,873,420
----------
PREFERRED STOCK (27.36%)
- ------------------------
BROADCASTING (12.11%)
American Radio Systems Corp. (144a) 7,713 $ 863,856
Chancellor Radio (144a) 7,950 914,250
Citadel Broadcasting Co. (144a) 2,500 268,125
Sinclair Capital (144a) 12,500 1,350,000
----------
TOTAL 3,396,231
----------
CABLE TELEVISION (3.98%)
Cablevision Systems Corp. PIK 10,294 1,116,872
----------
FINANCIAL (2.81%)
California Fed Pfd Capital 30,000 787,500
----------
LEISURE RELATED (1.87%)
Alliance Gaming Corp. PIK 5,188 523,937
----------
PRINTING AND PUBLISHING (3.63%)
K-III Communications Corp. (144a) 10,000 $ 1,017,500
----------
TELECOMMUNICATIONS (0.97%)
NTL, Inc. PIK (144a) 2,500 273,125
----------
UTILITY - GAS (1.99%)
Petroleum Heat & Power Inc. (144a) 22,500 556,875
----------
TOTAL PREFERRED STOCK $ 7,672,040
----------
MONEY MARKET INVESTMENTS (1.78%)
- --------------------------------
FINANCE SERVICES (1.78%)
Bat Capital Corporation, 5.48%, 8/27/97 500,000 $ 498,021
----------
TOTAL MONEY MARKET INVESTMENTS $ 498,021
----------
TOTAL HIGH YIELD BOND PORTFOLIO $28,043,481
==========
+ Denotes deferred interest security that receives no coupon payments until a
predetermined date at which the stated coupon rate becomes effective.
<PAGE>
MASON STREET FUNDS
INTERNATIONAL STOCK FUND
SCHEDULE OF INVESTMENTS
JULY 31,1997
MARKET
COUNTRY SHARES/PAR VALUE
COMMON STOCK (58.16%) ------- ---------- -----
- ---------------------
AEROSPACE & MILITARY TECHNOLOGY (0.68%)
HONG KONG AIRCRAFT & ENGINEERING H.K. 56,000 $ 191,308
---------
APPL. & HOUSEHOLD DURABLES (2.17%)
FISHER & PAYKEL U.K. 102,100 370,872
THORN PLC U.K. 76,028 207,908
THORN PLC B SHARES U.K. 88,700 29,048
---------
TOTAL 607,828
---------
AUTOMOBILES (3.61%)
BERTRAND FAURE SA EX EBF Fr. 5,500 309,175
FIAT SPA ORD ITL1000 Italy 84,920 280,815
RENAULT SA Fr. 15,100 420,389
---------
TOTAL 1,010,379
---------
BANKING (5.20%)
BANCO BRADESCO SA (PN) Braz. 27,950,000 303,243
BANQUE NATIONALE DE PARIS ORD Fr. 6,000 285,832
CREDIT COMMERCIAL DE FRANCE Fr. 5,800 291,290
ITAUBANCO PFD REGD U.K. 94,000 55,636
UNIBANCO PN /PFD REGD/ Braz. 3,158,000 116,610
WING HANG BANK LTD H.K. 67,200 401,855
---------
TOTAL 1,454,466
---------
BROADCAST ADVER. PUBLISHING (2.14%)
MARIEBERG TIDINGS SER.A FREE Swe. 9,200 228,762
NEWS CORP LTD VOTING PFD SHARES Austrl. 95,500 369,992
---------
TOTAL 598,754
---------
BUILDING MATERIALS & COMPONENTS (2.72%)
HEPWORTH ORD U.K. 58,200 202,041
PIONEER INTERNATIONAL LTD Austrl. 109,700 398,035
SIAM CITY CEMENT FOREIGN REGD Thai. 40,600 159,216
---------
TOTAL 759,292
---------
CHEMICALS (1.60%)
COURTAULDS ORD U.K. 42,200 216,291
IMPERIAL CHEMICAL INDUST U.K. 14,000 230,969
---------
TOTAL 447,260
---------
CONSTRUCTION & HOUSING (1.83%)
DRAGADOS Y CONSTRUCIONES SPPT500 Spain 15,600 298,772
SIRTI SPA Italy 39,300 214,184
---------
TOTAL 512,956
---------
ELECTRONIC COMPONENTS, INSTRUMENTS (0.56%)
BICC ORD U.K. 57,000 156,807
---------
ELECTRICAL & ELECTRONICS (1.63%)
PHILIPS ELECTRONICS Neth. 5,600 $ 455,042
---------
ENERGY SOURCES (2.05%)
YPF SA SPONSORED ADR /REP CL D/ Arg. 17,700 573,038
---------
FINANCIAL SERVICES (0.52%)
PEREGRINE INVESTMENTS HOLDINGS H.K. 66,000 145,767
---------
FOOD & HOUSEHOLD PRODUCTS (3.30%)
CP FEEDMILL PUB CO LTD FOREIGN Thai. 83,000 170,557
NORTHERN FOODS U.K. 74,000 269,009
OSHAWA GROUP LTD CL A Can. 16,500 250,696
TATE & LYLE ORD U.K. 34,500 232,754
---------
TOTAL 923,016
---------
FOREST PRODUCTS & PAPER (1.98%)
ENSO OY A SHS Fin. 30,000 272,304
FLETCHER CHALLENGE FORESTRY DIV N.Z. 4,840 6,342
FLETCHER CHALLENGE PAPER N.Z. 121,000 274,703
---------
TOTAL 553,349
---------
HAZARDOUS WASTE DISPOSAL (0.16%)
WASTE MANAGEMENT INTL U.K. 10,400 45,981
---------
HEALTH & PERSONAL CARE (1.73%)
NYCOMED ASA A SHS Norw. 24,300 484,661
---------
INDUSTRIAL COMPONENTS (2.98%)
BTR ORD Austrl. 152,200 472,286
GRANGES AB Swe. 7,700 114,105
WEIR GROUP U.K. 62,000 245,691
---------
TOTAL 832,082
---------
INSURANCE (2.26%)
PARTNERRE LTD Bermuda 11,500 475,813
ZURICH VERICHER NAMEN /REGD/ Czech. 380 154,805
---------
TOTAL 630,618
---------
METAL - NON-FEREOUS (1.44%)
PECHINEY SA A SHARES FR. 9,300 403,842
---------
TOTAL 403,842
---------
MERCHANDISING (1.34%)
DAVID JONES LTD Austrl. 77,500 111,441
SOMERFIELD PLC U.K. 82,500 263,433
---------
TOTAL 374,874
---------
METAL - STEEL (4.35%)
BOEHLER UDDEHOLM BEARER Austria 4,000 $ 324,950
BRITISH STEEL ORD U.K. 217,100 589,243
GRUPO MEXICO B SHARES Mex. 73,700 301,258
---------
TOTAL 1,215,451
---------
MISCELLANEOUS MATERIAL/COMMODITIES (0.66%)
THAI GLASS INDUSTRIES /FOR REGD/ Thai. 80,100 183,445
---------
MULTI INDUSRTY (6.06%)
AMER GROUP "A" Fin. 13,000 237,421
HARRISONS & CROSFIELD ORD U.K. 113,800 191,938
HICOM HOLDINGS BHD Malaysia 92,300 168,041
JARDINE MATHESON /SGD/ USD PAR Sing. 62,500 431,250
METRO PACIFIC CORPORATION Philippines 1,225,000 196,422
SWIRE PACIFIC LIMITED B H.K. 296,000 470,236
---------
TOTAL 1,695,308
---------
REAL ESTATE (0.93%)
HANG LUNG DEVELOPMENT CO. H.K 133,000 260,245
---------
TELECOMMUNICATIONS (2.25% )
TELEBRAS Braz. 4,578,500 627,758
---------
UTILITIES - ELEC & GAS (3.11%)
HONG KONG ELECTRIC H.K 106,000 432,625
NATIONA GRID HOLDINGS PLC U.K. 31,600 133,502
THAMES WATER ORD U.K. 23,000 302,430
---------
TOTAL 868,557
---------
WHOLESALE & INTERNATIONAL TRADE (0.90%)
INCHCAPE BERHAD Sing. 69,000 246,261
----------
TOTAL COMMON STOCK $16,258,345
MONEY MARKET INVESTMENTS (41.84%)
- ---------------------------------
BAT CAPITAL DISC. 8/27/97 U.S. 900,000 $ 896,438
FHLMC D/N 7/8/97 U.S. 10,800,000 10,800,000
----------
TOTAL MONEY MARKET INSTRUMENTS $11,696,438
----------
TOTAL INTERNATIONAL STOCK PORTFOLIO $27,954,783
----------
Non-income producing
ADR - American Depository Receipt
<PAGE>
MASON STREET FUNDS, INC.
Notes to Financial Statements
July 31, 1997
NOTE 1 - The Mason Street Funds, Inc. ("MSF") was incorporated under the laws
of the state of Maryland on August 30, 1996 as an open-end investment company
under the Investment Company Act of 1940. MSF consists of the Aggressive Growth
Stock Fund, International Equity Fund, Growth Stock Fund, Growth and Income
Stock Fund, Index 500 Stock Fund, Asset Allocation Fund, High Yield Bond Fund,
Municipal Bond Fund and the Select Bond Fund, collectively known as "the
Funds". The Funds commenced operations on March 31, 1997 at $10.00 per share
with 1,200 shares in each of the Funds owned by Northwestern Mutual Life
Insurance Company ("Northwestern Mutual Life"). On April 1, 1997,
Northwestern Mutual Life invested an additional $225 million in MSF; $25 million
in the Class A Shares in each of the Funds.
Each Fund offers two classes of shares: Class A shares with an initial sales
charge up to 4.75% and Class B shares with a surrender charge of 0-5% over a
period of up to six years. Each class of shares has equal rights with respect
to voting privileges.
Organizational costs and initial registration expenses are being deferred and
amortized over the period of benefit, but not to exceed sixty months from the
Fund's commencement of operations. These costs, totaling $427,290, were
advanced by Northwestern Mutual Life and will be reimbursed by the Funds
equally.
NOTE 2 - The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Principal accounting policies are summarized below.
NOTE 3 - Bonds are valued on the basis of prices furnished by a service which
determines prices for normal institutional size trading units of bonds, without
regard to exchange or over-the-counter prices. When quotations are not readily
available, bonds are valued at fair market value determined by procedures
approved by the Board of Directors. Stocks listed on a national or foreign
stock exchange are valued at the final sale price, or final bid price in absence
of a sale. Stocks not listed on a national or foreign stock exchange are valued
at the closing bid price on the over-the-counter market. Money market
investments with maturities exceeding sixty days but generally not exceeding one
year are valued by marking to market on the basis of an average of the most
recent bid prices or yields. Money market investments with maturities of sixty
days or less are valued on an amortized cost basis or, if the current market
value differs substantially from the amortized cost, by marking to market.
NOTE 4 - Securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts on the date of valuation.
Purchases and sales of securities and income items denominated in foreign
currencies are translated into U.S. dollar amounts on the respective dates of
such transactions. When the International Equity Fund and Asset Allocation Fund
purchase or sell a foreign security they may enter into a foreign exchange
currency contract to minimize market risk from the trade date to the settlement
date of such transaction. Such foreign exchange currency contracts are marked
to market daily.
The International Equity Fund and Asset Allocation Fund do not separately report
the results of operations due to 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 gain or
loss from investments.
Net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade date and the
settlement date on security transactions, the differences between the amounts of
dividends and foreign withholding taxes recorded on the fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid.
NOTE 5 - The Aggressive Growth Stock Fund, Growth Stock Fund, Index 500 Stock
Fund, Asset Allocation Fund, Municipal Bond Fund and the Select Bond Fund invest
in futures contracts as an alternative to investing in individual securities.
The Aggressive Growth Stock Fund, Growth Stock Fund, Index 500 Stock Fund, Asset
Allocation Fund, Municipal Bond Fund and the Select Bond Fund could be exposed
to market risk due to changes in the value of the underlying securities or due
to an illiquid secondary market. Futures contracts are marked to market daily
based upon quoted settlement prices. The Funds receive from or pay to brokers
an amount of cash equal to the daily fluctuation in the value of the contracts.
Such receipts or payments, known as the "variation margin," are recorded by the
Funds as unrealized gains or losses. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
For Federal income tax purposes, net unrealized appreciation(depreciation) on
open futures contracts is required to be treated as realized gains(losses).
NOTE 6 - Income, fund expenses, realized and unrealized gains and losses are
allocated daily to each class of shares based on the value of shares outstanding
for the Aggressive Growth Stock Fund, International Equity Fund, Growth Stock
Fund, Growth and Income Stock Fund, Index 500 Stock Fund and Asset Allocation
Fund. Dividends and other distributions are calculated in a similar manner and
are declared and distributed to shareholders annually for these funds. For the
High Yield Bond Fund, Municipal Bond Fund, and Select Bond Fund, income and fund
expenses are allocated daily to each class of shares based on the value of paid
shares. Realized and unrealized gains and losses are allocated daily to each
class of shares based on the value of shares outstanding. Dividends and other
distributions are calculated in a similar manner. Income dividends are declared
daily, paid monthly. Capital gain dividends are declared and distributed
annually for these funds.
NOTE 7 - Interest income and discounts earned are recorded daily on the accrual
basis and dividend income is recorded on the ex-dividend date or as soon as
information from foreign issuers is available. Where applicable, dividends are
recorded net of foreign dividend tax. Discounts on securities purchased in the
Funds are amortized over the life of the respective securities using the
effective interest method. Premiums for the Municipal Bond Fund are amortized
to the remaining life or earlier call date, whichever is earlier. Securities
transactions are accounted for on trade date. The basis for determining cost on
sale of securities is identified cost. For the four month period ended July 31,
1997, transactions in securities other than money market investments were:
<TABLE>
U.S. GOVT
U.S. GOVT TOTAL SECURITY SECURITY
TOTAL SECURITY SECURITY SALES/ SALES/
PORTFOLIOS PURCHASES PURCHASES MATURITIES MATURITIES
- ---------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
Aggressive Growth Stock Fund........................ $30,099,267 $ - $ 5,234,656 $ -
International Equity Fund........................... 14,952,196 - - -
Growth Stock Fund................................... 25,259,274 - 1,210,015 -
Growth and Income Stock Fund........................ 37,336,639 - 12,576,470 -
Index 500 Stock Fund................................ 25,977,301 - 345,658 -
Asset Allocation Fund............................... 31,844,340 4,343,173 7,386,957 1,805,262
High Yield Bond Fund................................ 46,262,945 - 21,140,174 -
Municipal Bond Fund................................. 53,958,663 - 28,394,952 -
Select Bond Fund.................................... 58,815,427 22,310,445 32,934,102 20,643,155
</TABLE>
NOTE 8 - Northwestern Mutual Investment Services, Inc., ("NMIS") serves as
investment advisor to each of the Funds, with certain of the Funds also being
served by a subadvisor. Each Fund pays NMIS an annual fee for investment
advisory services based on average daily net assets of the Fund according to the
following schedule:
FUND FEE
- ---- ---
Aggressive Growth Fund..................................... 0.75%
International Equity....................................... 0.85%
Growth Stock Fund.......................................... 0.75%
Growth and Income Stock Fund............................... 0.65%
Index 500 Stock Fund....................................... 0.30%
Asset Allocation Fund...................................... 0.70%
High Yield Bond Fund....................................... 0.75%
Municipal Bond Fund........................................ 0.30%
Select Bond Fund........................................... 0.30%
J. P. Morgan Investment Management, Inc. ("J. P. Morgan") and Templeton
Investment Counsel, Inc. ("Templeton Counsel") have been retained under
investment sub-advisory agreements to provide investment advice and, in general,
to conduct the management investment program of the Growth and Income Stock Fund
and the International Equity Fund, respectively. Of the amounts received from
the Growth and Income Stock Fund, NMIS pays J.P. Morgan .45% on the first $100
million of the combined net assets for all funds managed for Northwestern Mutual
Life by J.P. Morgan, .40% on the next $100 million, .35% on the next $200
million and .30% on the combined net assets in excess of $400 million. Of the
amounts received from the International Equity Fund, NMIS pays Templeton Counsel
.50% on the first $100 million of the combined net assets for all funds managed
for Northwestern Mutual Life by Templeton Counsel and .40% on the combined net
assets in excess of $100 million.
Robert W. Baird & Co. Incorporated ("Baird") serves as the distributor of the
Funds. Baird is an affiliate of Northwestern Mutual Life and NMIS. The Funds
have a 12b-1 distribution plan and Shareholder Services Agreement with Baird
pursuant to which a .35% and a 1.00% annual fee for Class A and Class B,
respectively, is calculated based on daily net assets. The .35% fee for Class A
is comprised of a .25% shareholder servicing fee and a .10% distribution fee
paid to Baird for various distribution expenses. The 1.00% fee for Class B is
comprised of a .25% shareholder servicing fee and a .75% distribution fee. Of
the 1.00%, .35% is paid to Baird for distribution expenses; the remaining .65%
is paid to Northwestern Mutual Life for reimbursement of commissions paid to
agents.
Each Fund also pays the administrator, Northwestern Mutual Life, a monthly fee
at an annual rate of .10% plus costs for pricing securities. This
administration fee is for services including recordkeeping, preparation of
reports and fund accounting (except for the International Equity Fund). For the
International Equity Fund, Northwestern Mutual Life waives a portion of its fee
equal to the fund accounting fee paid to Brown Brothers Harriman & Co.
In addition, each Fund pays transfer agent and custodian fees, outside
professional and auditing fees, registration fees, trademark fees,
organizational costs, insurance premiums, Director's fees and expenses, and the
printing and mailing costs of sending reports and other information to existing
shareholders.
The Funds pay a portion of their custodian fees indirectly through expense
offset arrangements. Custodian fees are reduced for
maintaining compensating balances in non-interest bearing
accounts. The funds could have invested the assets used to pay for the
custodian fees, had the assets not been used in the expense offset arrangements.
NMIS and affiliates have agreed to waive their fees and absorb certain other
operating expenses during the first year of operations to the extent necessary
so that Total Operating Expenses will not exceed the following amounts:
Fund Class A Class B
- ---- ------- -------
Aggressive Growth Stock Fund 1.30% 1.95%
International Equity Fund 1.65% 2.30%
Growth Stock Fund 1.30% 1.95%
Growth and Income Stock Fund 1.20% 1.85%
NOTE 9 - Each Fund intends to comply with the requirements for the Internal
Revenue Code necessary to qualify as a regulated investment company and to make
the requisite distributions of income and capital gains to its shareholders
sufficient to relieve it from all or substantially all Federal income taxes.
Accordingly, no provisions have been made for Federal taxes.
As of July 31, 1997, the federal income tax basis of investments is the same as
the cost basis in the financial statements. The net unrealized appreciation
(depreciation) for federal income tax purposes are shown below:
<TABLE>
<CAPTION>
(IN THOUSANDS)
AGGRESSIVE GROWTH &
GROWTH INTERNATIONAL GROWTH INCOME INDEX 500
STOCK EQUITY STOCK STOCK STOCK
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross unrealized appreciation $7,714 $1,858 $6,305 $5,279 $6,552
Gross unrealized depreciation (176) (552) (39) (139) (76)
------ ------ ------ ------ ------
Net unrealized appreciation $7,538 $1,306 $6,266 $5,140 $6,476
====== ====== ====== ====== ======
<CAPTION>
ASSET HIGH YIELD MUNICIPAL SELECT
ALLOCATION BOND BOND BOND
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross unrealized appreciation $4,379 $1,807 $1,296 $ 834
Gross unrealized depreciation (102) (11) - (2)
------ ------ ------ ------
Net unrealized appreciation $4,277 $1,796 $1,296 $ 832
====== ====== ====== ======
</TABLE>
NOTE 10 -Dividends from net investment income in the High Yield Bond Fund,
Municipal Bond Fund and Select Bond Fund are declared daily and distributed to
shareholders monthly. Dividends from net investment income for the Aggressive
Growth Stock Fund, International Equity Fund, Growth Stock Fund, Growth and
Income Stock Fund, Index 500 Stock Fund and Asset Allocation Fund are declared
and distributed to shareholders annually. Net long-term capital are annually.
Dividends are paid on the record date. The following distributions were made
for the four months ended July 31, 1997.
CLASS A SHARES CLASS B SHARES
-------------- --------------
RECORD ORDINARY INCOME ORDINARY INCOME
FUNDS DATE PER SHARE PER SHARE
- ----- ---- --------- ---------
High Yield Bond Fund 4/30/97 $.061129 $.053177
5/31/97 .077775 .071678
6/30/97 .070789 .064950
7/31/97 .068452 .062336
-------- --------
$.278145 $.252141
======== ========
Municipal Bond Fund 4/30/97 $.035378 $.026612
5/31/97 .040091 .034007
6/30/97 .036607 .028968
7/31/97 .039901 .034070
-------- --------
$.151986 $.123657
======== ========
Select Bond Fund 4/30/97 $.047940 $.042453
5/31/97 .054720 .048928
6/30/97 .053516 .046324
7/31/97 .057469 .051258
-------- --------
$.213645 $.188963
======== ========
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements
Financial Statements Included in the Prospectus:
-----------------------------------------------
Financial Highlights
July 31, 1997 Financial Statements for Mason Street Funds, Inc.
---------------------------------------------------------------
Included in the Statement of Additional Information:
---------------------------------------------------
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Financial Highlights
Schedules of Investments
Notes to Financial Statements
(b) Exhibits
*Exhibit B1 Articles of Incorporation of Mason Street Funds,
Inc.
*Exhibit B2 By-Laws of Mason Street Funds, Inc.
Exhibit B2(a) Amendment to By-Laws of Mason Street Funds, Inc.
*Exhibit B4 Rights of Stockholders are described in Article
FOURTH and Article SIXTH of the Articles of
Incorporation for Mason Street Funds, Inc.,
referenced herein as Exhibit B1.
*Exhibit B5(a) Form of Investment Advisory Agreement between Mason
Street Funds, Inc. (on behalf of the Index 500
Stock Fund) and Northwestern Mutual Investment
Services, Inc.
**Exhibit B5(b) Form of Investment Sub-Advisory Agreement between
Mason Street Funds, Inc. (on behalf of the Growth
and Income Stock Fund), Northwestern Mutual
Investment Services, Inc. and J.P. Morgan
Investment Management, Inc.
**Exhibit B5(c) Form of Investment Sub-Advisory Agreement between
Northwestern Mutual Investment Services, Inc.,
(Investment Adviser to the International Equity
Fund) and Templeton Investment Counsel, Inc.
**Exhibit B6 Form of Principal Underwriting Agreement.
(7) Not Applicable.
***Exhibit B8(a) Form of Custodian Agreement with Chase Manhattan
Bank.
<PAGE>
***Exhibit B8(b) Form of Custodian Agreement with Bankers Trust Co.
***Exhibit B8(c) Form of Custodian Agreement with Brown Brothers
Harriman & Co.
**Exhibit B9(a) Form of Transfer Agency and Service Agreement.
**Exhibit B9(b) Form of Shareholder Servicing Agreement with Robert
W. Baird & Co.
**Exhibit B9(c) Form of Administration Agreement with The
Northwestern Mutual Life Insurance Company.
***Exhibit B10 Opinion and Consent of Counsel.
***Exhibit B11 Consent of Price Waterhouse LLP.
(12) Not Applicable.
**Exhibit B13 Form of Subscription Agreement.
***Exhibit B14 Model Retirement Plans.
B14(a) Prototype Non-Standard 401(k) Profit Sharing Plan
Adoption Agreement
B14(b) Prototype Non-Standard 401(k) Profit Sharing Plan
Adoption Agreement
B14(c) Prototype Money Purchase Pension Plan Adoption
Agreement
B14(d) Prototype Non-Standard Profit Sharing Plan Adoption
Agreement
B14(e) Prototype Standard 401(k) Profit Sharing Plan
Adoption Agreement
B14(f) Prototype 401(k) Profit Sharing Plan Adoption
Agreement
B14(g) Prototype Money Purchase Pension Plan Adoption
Agreement
B14(h) Prototype Standard Profit Sharing Plan Adoption
Agreement
B14(i) Prototype Standard Simple 401(k) Profit Sharing
Plan Adoption Agreement
**Exhibit B15(a) Form of Rule 12b-1 Distribution Plan for Class A
Shares.
**Exhibit B15(b) Form of Rule 12b-1 Distribution Plan for Class B
Shares.
<PAGE>
Exhibit B16 Schedules of computation for the High Yield,
Municipal and Select Bond Funds' yield quotations
for the one month period ended July 31, 1997.
(17) Not Applicable.
*Exhibit B18 Form of Rule 18f-3 Plan.
Exhibit 27 Financial Data Schedule for period ended July 31,
1997 for each Fund of Mason Street Funds, Inc.
* Exhibits previously filed with Form N-1A Registration Statement for
Mason Street Funds, Inc. on December 6, 1996, and incorporated herein by
reference.
** Exhibits previously filed with Form N-1A Pre-Effective Amendment No. 1
for Mason Street Funds, Inc. on February 7, 1997, and incorporated
herein by reference.
*** Exhibits previously filed with Form N-1A Pre-Effective Amendment No. 2
for Mason Street Funds, Inc. on March 5, 1997, and incorporated herein
by reference.
Item 25. Persons Controlled by or under Common Control with Registrant
-------------------------------------------------------------
As of July 31, 1997, 96.9% of the shares of the Registrant were owned
by The Northwestern Mutual Life Insurance Company ("Northwestern
Mutual Life"), a mutual insurance company organized by a special act
of the Wisconsin Legislature. Northwestern Mutual Life directly
controls the Registrant. Subsidiaries of Northwestern Mutual Life
when considered in the aggregate as a single subsidiary would not
constitute a significant subsidiary.
Item 26. Number of Record Holders by Class of Securities as of July 31, 1997
-------------------------------------------------------------------
Fund Name Class A Class B
--------- ------- -------
Aggressive Growth Stock Fund 403 139
International Equity Fund 264 87
Growth Stock Fund 167 64
Growth and Income Stock Fund 240 73
Index 500 Stock Fund 360 162
Asset Allocation Fund 161 66
High Yield Bond Fund 114 38
Municipal Bond Fund 20 18
Select Bond Fund 49 17
Item 27. Indemnification
---------------
Article IX of Registrant's By-Laws is included as Exhibit B2 to the
Registration Statement under the Securities Act of 1933 and the
Investment Company Act of 1940. The By-laws of Northwestern Mutual
Life permit indemnification by Northwestern Mutual Life of persons who
are serving as directors of another corporation at the request of
Northwestern Mutual Life. Pursuant to the By-Law
<PAGE>
provision, the Trustees of Northwestern Mutual Life have adopted a
resolution extending to all of the directors of the Registrant the
benefits of the indemnification arrangements for employees, officers
and Trustees of Northwestern Mutual Life. Directors' and officers'
liability insurance which covers the directors and officers of the
Registrant as well as Trustees and officers of Northwestern Mutual
Life is also in force. The amount of coverage is $30 million. There
is no deductible, except that the deductible amount is $1,000,000 ($1
million) for claims covered by corporate indemnification. The cost of
this insurance is allocated among Northwestern Mutual Life and its
subsidiaries and no part of the premium has been paid by the
Registrant.
Item 28. Business and Other Connections of Investment Adviser
----------------------------------------------------
In addition to its investment advisory function, Northwestern Mutual
Investment Services, Inc. ("NMIS"), the Registrant's investment
adviser, is responsible for the selection, training and supervision of
life insurance agents of Northwestern Mutual Life who engage in the
distribution of variable annuities and variable life insurance issued
by Northwestern Mutual Life. The directors and officers of NMIS also
serve as officers of Northwestern Mutual Life.
Item 29. Principal Underwriter
---------------------
Robert W. Baird & Co., Inc. ("RWB") serves as the principal
underwriter for each Fund. RWB is an indirect majority-owned
subsidiary of Northwestern Mutual Life. RWB also serves as the
principal underwriter for the Baird Adjustable Rate Income Fund, a
portfolio of The Baird Funds, Inc.
The directors and principal officers of RWB are as follows:
G. Frederick Kasten, Jr. President and CEO
James D. Bell Managing Director
Bryce P. Edwards Managing Director
Glen F. Hackmann Managing Director and Sec'y.
Steven P. Kent Managing Director
Keith A. Kolb Managing Director
Ronald J. Kruszewski Managing Director
Patrick S. Lawton Managing Director
William W. Mahler Managing Director
Terry Maxwell Managing Director
John Mayer Managing Director
Scott B. McCuaig Managing Director
Paul E. Purcell Managing Director
Paul S. Shain Managing Director
J. Camp Van Dyke Managing Director
Officer but not Director:
James M. Zemlyak Chief Financial Officer
All of the above are located at 777 East Wisconsin Avenue, Milwaukee,
WI 53202.
<PAGE>
None of the above has a position with Registrant.
Item 30. Location of Accounts and Records
--------------------------------
Books and other documents required to be maintained by the Registrant
by section 31(a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder are maintained by the Registrant's transfer
agent, National Financial Data Services, 1004 Baltimore, Kansas City,
Missouri 64105 and the Funds' custodians as follows: the custodian for
the domestic securities of the Growth and Income Stock Fund, High
Yield Bond Fund and Municipal Bond Fund is Bankers Trust Company, 16
Wall Street, New York, New York 10015. The custodian for the domestic
securities of the Aggressive Growth Stock Fund, the Growth Stock Fund,
the Index 500 Stock Fund, the Asset Allocation Fund and the Select
Bond Fund is the Chase Manhattan Bank, N.A., One Chase Manhattan
Plaza, New York, New York 10081. The custodian for the International
Equity Fund and any foreign assets of the Asset Allocation Fund, High
Yield Bond Fund, Select Bond Fund, Aggressive Growth Stock Fund and
Growth Stock Fund is Brown Brothers Harriman & Co., 40 Water Street,
Boston, Massachusetts 02109. Registrant's financial ledgers and other
corporate records are maintained at its offices at The Northwestern
Mutual Life Insurance Company, 720 East Wisconsin Avenue, Milwaukee,
Wisconsin 53202.
Item 31. Management Services
-------------------
Not applicable.
Item 32. Undertakings
------------
(a) Not applicable.
(b) Not applicable.
(c) MSF will furnish each person to whom a prospectus is delivered
with a copy of MSF's latest annual report to shareholders, upon
request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amended Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused
this Amended Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Milwaukee, and State of
Wisconsin, on the 12th day of September, 1997.
MASON STREET FUNDS, INC.
(Registrant)
By:/s/JAMES D. ERICSON
James D. Ericson, President
Pursuant to the requirements of the Securities Act of 1933, this Amended
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated.
Signature Title
--------- -----
JAMES D. ERICSON President, Director
- ----------------------- and Principal Executive Officer
James D. Ericson
MARK G. DOLL Vice President,
- ----------------------- Treasurer and Principal
Mark G. Doll Financial Officer
BARBARA E. COURTNEY Controller and
- ----------------------- Principal Accounting Dated
Barbara E. Courtney Officer September 12, 1997
WILLIAM J. BLAKE* Director
- -----------------------
William J. Blake
STEPHEN N. GRAFF* Director
- -----------------------
Stephen N. Graff
MARTIN F. STEIN* Director
- -----------------------
Martin F. Stein
JOHN K. MACIVER* Director
- -----------------------
John K. MacIver
WILLIAM A. MCINTOSH* Director
- -----------------------
William A. McIntosh
* By /s/JAMES D. ERICSON
------------------------------
James D. Ericson, Attorney
in fact, pursuant to the Power
of Attorney attached hereto
<PAGE>
POWER OF ATTORNEY
The undersigned Directors of Mason Street Funds, Inc. (the "Company"),
hereby constitute and appoint James D. Ericson and Edward J. Zore, or either of
them, their true and lawful attorneys and agents, to sign the names of the
undersigned Directors to any instruments or documents filed as part of or in
connection with or in any way related to the registration statement or
statements and any and all amendments thereto, to be filed under the Securities
Act of 1933 and the Investment Company Act of 1940 in connection with shares of
the common stock of the Company offered to the public; and each of the
undersigned hereby ratifies and confirms all that said attorneys and agents
shall do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, each of the undersigned has subscribed these presents,
as indicated, August 7, 1997.
STEPHEN N. GRAFF Director
---------------------
Stephen N. Graff
WILLIAM J. BLAKE Director
---------------------
William J. Blake
JOHN K. MACIVER Director
---------------------
John K. MacIver
MARTIN F. STEIN Director
---------------------
Martin F. Stein
JAMES D. ERICSON Director
---------------------
James D. Ericson
WILLIAM A. MCINTOSH Director
---------------------
William A. McIntosh
<PAGE>
EXHIBIT INDEX
EXHIBITS FILED WITH FORM N-1A
POST-EFFECTIVE AMENDMENT NO. 1 TO
REGISTRATION STATEMENT UNDER SECTION 6 OF
THE SECURITIES ACT OF 1933
AND SECTION 8(b) OF THE INVESTMENT COMPANY ACT OF 1940
FOR
MASON STREET FUNDS, INC.
Exhibit Number Exhibit Name
- -------------- ------------
Exhibit B2(a) Amendment to By-Laws of Mason Street Funds, Inc.
Exhibit B16 Schedules of computation for the High Yield,
Municipal and Select Bond Funds' yield quotations
for the one month period ended July 31, 1997.
Exhibit 27 Financial Data Schedule for period ended July 31,
1997 for each Fund of Mason Street Funds, Inc.
Exhibit B2(a)
AMENDMENT TO THE BY-LAWS ADOPTED AT A MEETING OF THE DIRECTORS
OF MASON STREET FUNDS, INC.
ON AUGUST 7, 1997
AMENDMENT:
Section 8.10(k) of the By-Laws of Mason Street Funds, Inc. is hereby
amended to read as follows: "Issue senior securities or borrow money except
for short-term credits as my be necessary for the clearing of transactions and
except for temporary purposes to the extent of 5% of the total assets of the
Fund or for temporary purposes to provide liquidity to meet redemption
requests."
Exhibit B16
Schedules of computation for the High Yield, Municipal and Select Bond Funds'
yield quotations for the one month period ended July 31, 1997, are as follows:
a. High Yield Bond Fund
Class A: 9.26%
Class B: 9.04%
b. Municipal Bond Fund
Class A: 4.19%
Class B: 3.75%
Municipal Bond Fund Tax Equivalent (assumes a 31% tax rate)
Class A: 6.05%
Class B: 5.42%
c. Select Bond Fund
Class A: 6.11%
Class B: 5.75%
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Growth and Income Stock Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,269,159
<INVESTMENTS-AT-VALUE> 32,409,518
<RECEIVABLES> 543,621
<ASSETS-OTHER> 340,413
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,293,552
<PAYABLE-FOR-SECURITIES> 781,410
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 149,898
<TOTAL-LIABILITIES> 931,308
<SENIOR-EQUITY> 25,767,551
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,553,702
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 43,674
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,410,660
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,140,359
<NET-ASSETS> 32,362,244
<DIVIDEND-INCOME> 135,906
<INTEREST-INCOME> 20,505
<OTHER-INCOME> 0
<EXPENSES-NET> 112,737
<NET-INVESTMENT-INCOME> 43,674
<REALIZED-GAINS-CURRENT> 1,410,660
<APPREC-INCREASE-CURRENT> 5,140,359
<NET-CHANGE-FROM-OPS> 6,594,693
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,553,219
<NUMBER-OF-SHARES-REDEEMED> 116
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 32,350,244
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 148,034
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 2.57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.59
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Growth and Income Stock Funds, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-1-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,269,159
<INVESTMENTS-AT-VALUE> 32,409,518
<RECEIVABLES> 543,621
<ASSETS-OTHER> 340,413
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,293,552
<PAYABLE-FOR-SECURITIES> 781,410
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 149,898
<TOTAL-LIABILITIES> 931,308
<SENIOR-EQUITY> 25,767,551
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 16,680
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 43,674
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,410,660
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,140,359
<NET-ASSETS> 32,362,244
<DIVIDEND-INCOME> 135,906
<INTEREST-INCOME> 20,505
<OTHER-INCOME> 0
<EXPENSES-NET> 112,737
<NET-INVESTMENT-INCOME> 43,674
<REALIZED-GAINS-CURRENT> 1,410,660
<APPREC-INCREASE-CURRENT> 5,140,359
<NET-CHANGE-FROM-OPS> 6,594,693
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,185
<NUMBER-OF-SHARES-REDEEMED> 106
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 32,350,244
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 148,034
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> 2.57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.56
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Aggressive Growth Stock Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,777,315
<INVESTMENTS-AT-VALUE> 35,315,368
<RECEIVABLES> 379,004
<ASSETS-OTHER> 473,688
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 36,168,060
<PAYABLE-FOR-SECURITIES> 1,685,015
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 162,576
<TOTAL-LIABILITIES> 1,847,591
<SENIOR-EQUITY> 26,148,490
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,572,085
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (81,580)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 715,506
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,538,053
<NET-ASSETS> 34,320,469
<DIVIDEND-INCOME> 9,174
<INTEREST-INCOME> 34,662
<OTHER-INCOME> 0
<EXPENSES-NET> 125,416
<NET-INVESTMENT-INCOME> (81,580)
<REALIZED-GAINS-CURRENT> 715,506
<APPREC-INCREASE-CURRENT> 7,538,053
<NET-CHANGE-FROM-OPS> 8,171,979
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,571,636
<NUMBER-OF-SHARES-REDEEMED> 151
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 34,308,469
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 162,516
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 3.23
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.20
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Aggressive Growth Stock Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-1-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,777,315
<INVESTMENTS-AT-VALUE> 35,315,368
<RECEIVABLES> 379,004
<ASSETS-OTHER> 473,688
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 36,168,060
<PAYABLE-FOR-SECURITIES> 1,685,015
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 162,576
<TOTAL-LIABILITIES> 1,847,591
<SENIOR-EQUITY> 26,148,490
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 27,694
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (81,850)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 715,506
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,538,053
<NET-ASSETS> 34,320,469
<DIVIDEND-INCOME> 9,174
<INTEREST-INCOME> 34,662
<OTHER-INCOME> 0
<EXPENSES-NET> 125,416
<NET-INVESTMENT-INCOME> (81,580)
<REALIZED-GAINS-CURRENT> 715,506
<APPREC-INCREASE-CURRENT> 7,538,053
<NET-CHANGE-FROM-OPS> 8,171,979
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27,098
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 34,308,469
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 162,516
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.06)
<PER-SHARE-GAIN-APPREC> 3.23
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.17
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Growth Stock Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,039,207
<INVESTMENTS-AT-VALUE> 33,305,222
<RECEIVABLES> 35,422
<ASSETS-OTHER> 257,553
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,598,197
<PAYABLE-FOR-SECURITIES> 1,005,607
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 159,081
<TOTAL-LIABILITIES> 1,164,688
<SENIOR-EQUITY> 25,952,537
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,570,720
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 20,758
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 94,399
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,365,815
<NET-ASSETS> 32,433,509
<DIVIDEND-INCOME> 96,051
<INTEREST-INCOME> 46,627
<OTHER-INCOME> 0
<EXPENSES-NET> 121,920
<NET-INVESTMENT-INCOME> 20,758
<REALIZED-GAINS-CURRENT> 94,399
<APPREC-INCREASE-CURRENT> 6,365,815
<NET-CHANGE-FROM-OPS> 6,480,972
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,570,236
<NUMBER-OF-SHARES-REDEEMED> 116
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 32,421,509
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 160,197
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> 2.54
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.55
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Growth Stock Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,039,207
<INVESTMENTS-AT-VALUE> 33,305,222
<RECEIVABLES> 35,422
<ASSETS-OTHER> 257,553
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,598,197
<PAYABLE-FOR-SECURITIES> 1,005,607
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 159,081
<TOTAL-LIABILITIES> 1,164,688
<SENIOR-EQUITY> 25,952,537
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 13,980
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 20,758
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 94,399
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,365,815
<NET-ASSETS> 32,433,509
<DIVIDEND-INCOME> 96,051
<INTEREST-INCOME> 46,627
<OTHER-INCOME> 0
<EXPENSES-NET> 121,920
<NET-INVESTMENT-INCOME> 20,758
<REALIZED-GAINS-CURRENT> 94,399
<APPREC-INCREASE-CURRENT> 6,365,815
<NET-CHANGE-FROM-OPS> 6,480,972
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,380
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 32,421,509
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 160,197
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.02)
<PER-SHARE-GAIN-APPREC> 2.54
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.52
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. International Equity Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,648,634
<INVESTMENTS-AT-VALUE> 27,954,783
<RECEIVABLES> 190,588
<ASSETS-OTHER> 116,413
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28,261,784
<PAYABLE-FOR-SECURITIES> 187,132
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181,222
<TOTAL-LIABILITIES> 368,354
<SENIOR-EQUITY> 26,224,917
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,583,939
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 351,113
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,546
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,304,854
<NET-ASSETS> 27,893,430
<DIVIDEND-INCOME> 222,737
<INTEREST-INCOME> 274,372
<OTHER-INCOME> 0
<EXPENSES-NET> 145,996
<NET-INVESTMENT-INCOME> 351,113
<REALIZED-GAINS-CURRENT> 12,546
<APPREC-INCREASE-CURRENT> 1,304,854
<NET-CHANGE-FROM-OPS> 1,668,513
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,583,448
<NUMBER-OF-SHARES-REDEEMED> 109
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 27,881,430
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 209,562
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .14
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.65
<EXPENSE-RATIO> 1.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. International Equity Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,648,634
<INVESTMENTS-AT-VALUE> 27,954,783
<RECEIVABLES> 190,588
<ASSETS-OTHER> 116,413
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28,261,784
<PAYABLE-FOR-SECURITIES> 187,132
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181,222
<TOTAL-LIABILITIES> 368,354
<SENIOR-EQUITY> 26,224,917
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 35,563
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 351,113
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,546
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,304,854
<NET-ASSETS> 27,893,430
<DIVIDEND-INCOME> 222,737
<INTEREST-INCOME> 274,372
<OTHER-INCOME> 0
<EXPENSES-NET> 145,996
<NET-INVESTMENT-INCOME> 351,113
<REALIZED-GAINS-CURRENT> 12,546
<APPREC-INCREASE-CURRENT> 1,304,854
<NET-CHANGE-FROM-OPS> 1,668,513
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34,963
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 27,881,430
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 209,562
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.63
<EXPENSE-RATIO> 2.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Index 500 Stock Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,283,197
<INVESTMENTS-AT-VALUE> 33,754,752
<RECEIVABLES> 159,110
<ASSETS-OTHER> 37,161
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,956,023
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119,740
<TOTAL-LIABILITIES> 119,740
<SENIOR-EQUITY> 27,056,897
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,604,802
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 108,378
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 54,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,616,155
<NET-ASSETS> 33,836,283
<DIVIDEND-INCOME> 168,275
<INTEREST-INCOME> 22,689
<OTHER-INCOME> 0
<EXPENSES-NET> 82,586
<NET-INVESTMENT-INCOME> 108,378
<REALIZED-GAINS-CURRENT> 54,853
<APPREC-INCREASE-CURRENT> 6,616,155
<NET-CHANGE-FROM-OPS> 6,779,386
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,611,159
<NUMBER-OF-SHARES-REDEEMED> 6,957
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 33,824,283
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 144,454
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 2.58
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.62
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Index 500 Stock Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 27,283,197
<INVESTMENTS-AT-VALUE> 33,759,752
<RECEIVABLES> 159,110
<ASSETS-OTHER> 37,161
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33,956,023
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119,740
<TOTAL-LIABILITIES> 119,740
<SENIOR-EQUITY> 27,056,897
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 77,487
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 108,378
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 54,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,616,155
<NET-ASSETS> 33,836,283
<DIVIDEND-INCOME> 168,275
<INTEREST-INCOME> 22,689
<OTHER-INCOME> 0
<EXPENSES-NET> 82,586
<NET-INVESTMENT-INCOME> 108,378
<REALIZED-GAINS-CURRENT> 54,853
<APPREC-INCREASE-CURRENT> 6,616,155
<NET-CHANGE-FROM-OPS> 6,779,386
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 85,456
<NUMBER-OF-SHARES-REDEEMED> 8,569
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 33,824,283
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 144,454
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 2.58
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.59
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Asset Allocation Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,235,019
<INVESTMENTS-AT-VALUE> 30,512,264
<RECEIVABLES> 346,245
<ASSETS-OTHER> 99,407
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 30,957,916
<PAYABLE-FOR-SECURITIES> 328,068
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 160,186
<TOTAL-LIABILITIES> 488,254
<SENIOR-EQUITY> 25,726,116
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,532,176
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 261,386
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 204,992
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,277,168
<NET-ASSETS> 30,469,662
<DIVIDEND-INCOME> 104,828
<INTEREST-INCOME> 282,553
<OTHER-INCOME> 0
<EXPENSES-NET> 125,995
<NET-INVESTMENT-INCOME> 261,386
<REALIZED-GAINS-CURRENT> 204,992
<APPREC-INCREASE-CURRENT> 4,227,168
<NET-CHANGE-FROM-OPS> 4,743,546
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,531,679
<NUMBER-OF-SHARES-REDEEMED> 103
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 30,457,662
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 156,335
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .10
<PER-SHARE-GAIN-APPREC> 1.77
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.87
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Asset Allocation Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,235,019
<INVESTMENTS-AT-VALUE> 30,512,264
<RECEIVABLES> 346,245
<ASSETS-OTHER> 99,407
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 30,957,916
<PAYABLE-FOR-SECURITIES> 328,068
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 160,186
<TOTAL-LIABILITIES> 488,254
<SENIOR-EQUITY> 25,726,116
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 34,585
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 261,386
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 204,992
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,277,168
<NET-ASSETS> 30,469,662
<DIVIDEND-INCOME> 104,828
<INTEREST-INCOME> 282,553
<OTHER-INCOME> 0
<EXPENSES-NET> 125,995
<NET-INVESTMENT-INCOME> 261,386
<REALIZED-GAINS-CURRENT> 204,992
<APPREC-INCREASE-CURRENT> 4,227,168
<NET-CHANGE-FROM-OPS> 4,743,546
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,985
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 30,457,662
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 156,335
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 1.77
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.85
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Municipal Bond Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 25,787,349
<INVESTMENTS-AT-VALUE> 27,083,397
<RECEIVABLES> 1,223,132
<ASSETS-OTHER> 81,619
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28,388,148
<PAYABLE-FOR-SECURITIES> 952,415
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 213,022
<TOTAL-LIABILITIES> 1,165,437
<SENIOR-EQUITY> 25,757,194
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,549,899
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 144,781
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,320,736
<NET-ASSETS> 27,222,711
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 458,863
<OTHER-INCOME> 0
<EXPENSES-NET> 73,419
<NET-INVESTMENT-INCOME> 385,444
<REALIZED-GAINS-CURRENT> 144,781
<APPREC-INCREASE-CURRENT> 1,320,736
<NET-CHANGE-FROM-OPS> 1,850,961
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 384,168
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,521,621
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 27,678
<NET-CHANGE-IN-ASSETS> 27,210,711
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 105,431
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .15
<PER-SHARE-GAIN-APPREC> .58
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.15)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.58
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Municipal Bond Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 25,787,349
<INVESTMENTS-AT-VALUE> 27,083,397
<RECEIVABLES> 1,223,132
<ASSETS-OTHER> 81,619
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28,388,148
<PAYABLE-FOR-SECURITIES> 952,415
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 213,022
<TOTAL-LIABILITIES> 1,165,437
<SENIOR-EQUITY> 25,757,194
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 24,203
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 144,781
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,320,736
<NET-ASSETS> 27,222,711
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 458,863
<OTHER-INCOME> 0
<EXPENSES-NET> 73,419
<NET-INVESTMENT-INCOME> 385,444
<REALIZED-GAINS-CURRENT> 144,781
<APPREC-INCREASE-CURRENT> 1,320,736
<NET-CHANGE-FROM-OPS> 1,850,961
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,276
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,589
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 14
<NET-CHANGE-IN-ASSETS> 27,210,711
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 105,431
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> .58
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.12)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.58
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. High Yield Bond Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,248,574
<INVESTMENTS-AT-VALUE> 28,043,481
<RECEIVABLES> 1,879,384
<ASSETS-OTHER> 531,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 30,454,060
<PAYABLE-FOR-SECURITIES> 1,373,935
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 331,243
<TOTAL-LIABILITIES> 1,705,178
<SENIOR-EQUITY> 26,233,787
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,604,557
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 719,188
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,795,907
<NET-ASSETS> 28,748,882
<DIVIDEND-INCOME> 87,752
<INTEREST-INCOME> 738,388
<OTHER-INCOME> 0
<EXPENSES-NET> 115,541
<NET-INVESTMENT-INCOME> 710,599
<REALIZED-GAINS-CURRENT> 719,188
<APPREC-INCREASE-CURRENT> 1,795,907
<NET-CHANGE-FROM-OPS> 3,225,694
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 709,004
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,553,292
<NUMBER-OF-SHARES-REDEEMED> 150
<SHARES-REINVESTED> 50,815
<NET-CHANGE-IN-ASSETS> 28,736,882
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 148,896
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> .98
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.28)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.98
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. High Yield Bond Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26,248,574
<INVESTMENTS-AT-VALUE> 28,043,481
<RECEIVABLES> 1,879,384
<ASSETS-OTHER> 531,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 30,454,060
<PAYABLE-FOR-SECURITIES> 1,373,935
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 331,243
<TOTAL-LIABILITIES> 1,705,178
<SENIOR-EQUITY> 26,233,787
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 13,199
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 719,188
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,795,907
<NET-ASSETS> 28,748,882
<DIVIDEND-INCOME> 87,752
<INTEREST-INCOME> 738,388
<OTHER-INCOME> 0
<EXPENSES-NET> 115,541
<NET-INVESTMENT-INCOME> 710,599
<REALIZED-GAINS-CURRENT> 719,188
<APPREC-INCREASE-CURRENT> 1,795,907
<NET-CHANGE-FROM-OPS> 3,225,694
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,595
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,540
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 59
<NET-CHANGE-IN-ASSETS> 28,736,882
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 148,896
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> .98
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.25)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.98
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Select Bond Fund, 7/31/97
Financial Statements. Class A.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 28,064,547
<INVESTMENTS-AT-VALUE> 28,900,049
<RECEIVABLES> 2,430,873
<ASSETS-OTHER> 575,108
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31,906,030
<PAYABLE-FOR-SECURITIES> 4,468,948
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 257,678
<TOTAL-LIABILITIES> 4,726,626
<SENIOR-EQUITY> 25,731,052
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,564,527
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 616,788
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 831,564
<NET-ASSETS> 27,179,404
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 614,541
<OTHER-INCOME> 0
<EXPENSES-NET> 73,030
<NET-INVESTMENT-INCOME> 541,511
<REALIZED-GAINS-CURRENT> 616,788
<APPREC-INCREASE-CURRENT> 831,564
<NET-CHANGE-FROM-OPS> 1,989,863
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 541,037
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,525,402
<NUMBER-OF-SHARES-REDEEMED> 50
<SHARES-REINVESTED> 38,575
<NET-CHANGE-IN-ASSETS> 27,167,404
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 106,737
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> .57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.21)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.57
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Mason Street Funds, Inc. Select Bond Fund, 7/31/97
Financial Statements. Class B.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 28,064,547
<INVESTMENTS-AT-VALUE> 28,900,049
<RECEIVABLES> 2,430,873
<ASSETS-OTHER> 575,108
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31,906,030
<PAYABLE-FOR-SECURITIES> 4,468,948
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 257,678
<TOTAL-LIABILITIES> 4,726,626
<SENIOR-EQUITY> 25,731,052
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 7,042
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 616,788
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 831,564
<NET-ASSETS> 27,179,404
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 614,541
<OTHER-INCOME> 0
<EXPENSES-NET> 73,030
<NET-INVESTMENT-INCOME> 541,511
<REALIZED-GAINS-CURRENT> 616,788
<APPREC-INCREASE-CURRENT> 831,564
<NET-CHANGE-FROM-OPS> 1,989,863
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 474
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,430
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 12
<NET-CHANGE-IN-ASSETS> 27,167,404
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 106,737
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> .57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.19)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.57
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
