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THE EQ ADVISORS TRUST
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Annual Report
December 31, 1997
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EQ ADVISORS TRUST
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NOTES ON PERFORMANCE
Performance of the EQ Advisors Trust portfolios as shown on the following pages
also contain comparative benchmarks, including both unmanaged and managed
indices and universes of managed portfolios. Each of the portfolios'
unannualized net rates of return are net of investment management fees, and
expenses of each of the portfolios of the EQ Advisors Trust. These rates are not
representative of the actual return you would receive under an Equitable
variable life insurance policy or annuity contract. No policyowner or
contractholder can invest directly in the EQ Advisors Trust portfolios. Changes
in policy values depend not only on the investment performance of the EQAdvisors
Trust portfolios, but also on the insurance and administrative charges,
applicable sales charges and the mortality and expense risk charge applicable
under a policy. These policy charges effectively reduce the dollar amount of any
net gains and increase the dollar amount of any net losses. The performance
shown is for the period since inception through December 31, 1997 and is
unannualized.
Each of the EQ Advisors Trust portfolios has a separate investment objective it
seeks to achieve by following a separate investment policy. There is no
guarantee that these objectives will be attained. The objectives and policies of
each portfolio will affect its return and its risk. Keep in mind that past
performance is no indication of future results.
THE BENCHMARKS
Market indices, which are unmanaged, are not subject to fees and expenses
typically associated with managed investment company portfolios, and investments
cannot be made in an index. Comparisons with these benchmarks, therefore, are of
limited use. They are included because they are widely known and may help you to
understand the universe of securities from which each Portfolio is likely to
select its holdings.
(1) The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") is an
unmanaged index containing common stock of 500 industrial, transportation,
utility and financial companies, regarded as generally representative of the
United States stock market. The Index reflects the reinvestment of dividends, if
any, but does not reflect fees, brokerage commissions or other expenses of
investing.
(2) The Russell 2000 Index ("Russell 2000") is an unmanaged index (with no
defined investment objective) of 2000 small-cap stocks and it includes
reinvestment of dividends. It is compiled by the Frank Russell Company.
(3) The Morgan Stanley Capital International EAFE Index ("MSCI EAFE") is a
market capitalization weighted equity index composed of a sample of companies
representative of the market structure of Europe, Australia and the Far East.
MSCI EAFE Index returns assume dividends reinvested net of withholding tax and
do not reflect any fees or expenses.
(4) The Morgan Stanley Capital International Emerging Markets Free Price Return
Index ("MSCI Emerging Markets Free") is a market capitalization weighted equity
index composed of companies that are representative of the market structure of
the following countries: Argentina, Brazil, Chile, China Free, Columbia, Czech
Republic, Greece, Hungary, India, Indonesia, Israel, Jordan, Korea (@50%),
Malaysia, Mexico Free, Pakistan, Peru, Philippines Free, Poland, Russia, South
Africa, SriLanka, Taiwan (@50%), Thailand, Turkey, Venezuela Free. The base date
for the index is December 31, 1987. "Free" MSCI indices exclude those shares not
purchasable by foreign investors. The average size of the emerging market
companies within this index is US$800 million.
(5) Lehman Government/Corporate Bond Index ("Lehman Gov't/Corp") represents an
unmanaged group of securities widely regarded by investors as representative of
the bond market. The "blended" performance numbers (e.g. 60% S&P 500/40% Lehman
Gov't/Corp) assume a static mix of the two indices.
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EQ ADVISORS TRUST
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(6) The Lipper Averages are contained in Lipper's survey of the performance of a
large number of mutual funds. This survey is published by Lipper Analytical
Services, Inc., a firm recognized for its reporting of performance of actively
managed funds. According to Lipper Analytical Services, Inc., the data are
presented net of investment management fees, direct operating expenses, and, for
funds with Rule 12b-1 plans, asset-based charges or 12b-1 distribution fees.
Performance data for funds which assess sales charges in other ways do not
reflect deductions for sales charges. Performance data shown for the Portfolios
does not reflect deduction for sales charges (which are assessed at the policy
level). This means that to the extent that asset-based sales charges deducted by
some funds have lowered the Lipper averages, the performance data shown for the
Portfolios appears relatively more favorable than the performance data for the
Lipper averages.
GROWTH OF A $10,000 INVESTMENT
The charts shown on the following pages illustrate the total value of an assumed
investment in Class 1B shares of each Portfolio of the EQ Advisors Trust. The
periods illustrated are from the inception dates shown through December 31,
1997. These results assume reinvestment of dividends and capital gains. The
total value shown for each Portfolio reflects management fees and operating
expenses of the portfolios. They have not been adjusted for insurance-related
charges and expenses associated with life insurance policies or annuity
contracts, which would lower the total values shown. Results should not be
considered representative of future gains or losses.
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MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
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During 1997, the S&P 500 rose 31.01%. The stellar performance is attributable to
the continuation of robust economic growth coupled with low inflation. Most of
the market's gain was achieved in the first several months of the year. In early
October, the uninterrupted climb in the major indices came to an abrupt halt as
investors took notice of the economic dislocations taking place in the Asian
Tiger economies. In one day, the S&P 500 suffered more than a 7% correction as
investors concluded that the problems in Asia would have a decidedly depressing
impact on the U.S. economy and U.S. corporate profits. Although the market
eventually recouped these losses, volatility characterized daily trading as
investors attempted to reconcile continued reports of potentially inflationary
U.S. economic data with the dampening effect on the U.S. economy of the "Asian
Contagion".
Recent activity in the stock market has led to an even wider desparity in
"value" versus "growth" stock valuations. We believe that the underperformance
in groups such as paper and forest products and capital goods- technology is
over. In fact, the currency devaluations in Asia could have a positive impact on
these industries longer- term as it becomes less likely that new capacity will
be added in the foreseeable future. While end demand for paper and technology
products is expected to remain healthy, it is the supply side of the equation
that typically leads to market imbalances. As such, we continued to add to our
positions in International Paper, Louisiana Pacific and other cyclical stocks.
Moreover, it is this thought process that dictated new positions in Stone
Container Corp., Texas Instruments, and Seagate Technology, Inc.
Looking forward, we understand that investors may continue to favor large-cap
growth stocks. However, we remain confident that through our bottom-up approach
to stock selection, investors will be rewarded by our commitment to undervalued
out-of-favor equities. We continue to invest in equities where company specific
events are likely to unleash value and do not invest with a specific forecast of
the direction of interest rates or the economy. This strategy has been
successful in the past and we are confident that it will continue to lead to
healthy performance in the future.
Kevin Rendino, Portfolio Manager
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INVESTMENT OBJECTIVE
Capital appreciation and, secondarily, income.
INVESTMENT POLICY
Investment in securities, primarily equities, that the Adviser believes are
undervalued and therefore represent basic investment value.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................... $49.5 million
Number of Issues .................................... 53
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Eastman Kodak Co. ...................... Photo & Optical
Aetna, Inc. .................................. Insurance
Seagram Co. Ltd. ............................. Beverages
Great Lakes Chemical Corp. ................... Chemicals
Wells Fargo & Co. ................................ Banks
Viacom Inc. (Class B) Printing, Publishing, Broadcasting
Lockheed Martin Corp. ........................ Aerospace
Humana, Inc. ................................. Insurance
U.S. West Media Group ............... Telecommunications
Pharmacia & Upjohn, Inc. ......................... Drugs
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ............................ 75.7%
Foreign Common Stock ............................. 2.6%
Short-Term & Other ............................... 21.7%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
Merrill Lynch Basic Value Equity Portfolio ...... 16.99%
(1)S&P 500 ...................................... 22.55%
(6)Lipper Growth & Income Funds Average.......... 21.37%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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MERRILL LYNCH BASIC S&P 500
VALUE EQUITY
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May 1, 1997 $10,000 $10,000
December 31, 1997 $11,699 $12,255
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MERRILL LYNCH WORLD STRATEGY PORTFOLIO
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During 1997, the overall return of the Portfolio was again held down by the
laggard performance of foreign equities and bonds relative to their U.S.
counterparts. The negative impact of foreign equities was limited by the
reduction of investment in that sector during the second half of 1997. The
decision to limit representation in Asian markets and to remain underweighted in
Japanese equities also reduced the impact of laggard performance of foreign
equities. As for foreign bonds, the maintenance of hedges against the European
fixed income portions of the portfolio during much of the year improved
Portfolio return by limiting the negative impact of a strong U.S. dollar versus
the European currencies. U.S. equities continued to be a positive net
contributor to overall portfolio returns during 1997. The strong overall returns
in the financial services sector, which was the largest single group represented
among U.S. equities, offset less favorable performance among select technology,
healthcare, and economically sensitive equities.
During the second half of 1997, there was a reduction of foreign equity exposure
in favor of increased commitments in cash reserves and U.S. equities and bonds.
This shift reflected our concerns over the widening economic problems in Asia,
including Japan, South Korea, and Southeast Asia. We significantly reduced the
allocation to Japan while maintaining a relatively large commitment to Europe.
In the U.S., expectations of further interest rate declines led us to retain the
largest concentration of funds in the financial services sector. The average
duration of the U.S. bond sector was maintained at the 5.9 year level as of
December 31, 1997, while European obligations accounted for the bulk of the
weighting in the foreign fixed income sector.
Tom Robinson, Portfolio Manager
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INVESTMENT OBJECTIVE
High total investment return.
INVESTMENT POLICY
Primarily in a portfolio of equity and fixed income securities, including
convertible securities, of U.S. and foreign issuers.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets .............................. $18.2 million
Number of Issues .................................. 132
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Travelers Group, Inc. ....................... Insurance
Carnival Corp. ........................ Leisure Related
Bank of New York Co., Inc. ...................... Banks
El Paso Natural Gas Co. ................. Utility - Gas
Owens Illinois Inc. ........................ Containers
Arnoldo Mondadori Editore S.p.A.
............ Printing, Publishing, Broadcasting
Gucci Group N.V. ................... Apparel & Textiles
Provident Companies Inc. .................... Insurance
Brunswick Corp. ............................. Machinery
Edison International ............... Utility - Electric
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ........................... 30.4%
Foreign Stock ................................... 27.7%
Bonds ........................................... 25.3%
Short-Term & Other .............................. 16.6%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
Merrill Lynch World Strategy Portfolio .......... 4.70%
Composite Market Benchmark* .................... 10.81%
(6)Lipper Global Flexible Portfolio Average ..... 9.56%
*The Composite Market Benchmark is made up of 36% S&P 500, 24% MSCI EAFE, 21%
Salomon Brothers U.S. Treasury Bond 1 Year+, 14% Salomon Brothers World
Government ex U.S. and 5% U.S. Treasury Bill
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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MERRILL LYNCH WORLD COMPOSITE MARKET INDEX
STRATEGY
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May 1, 1997 $10,000 $10,000
December 31, 1997 $10,470 $11,081
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MFS EMERGING GROWTH COMPANIES PORTFOLIO
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The Portfolio's performance benefited from the strong performance of its largest
sector, technology. Holdings are primarily in software, where the Portfolio owns
stock in leading database, design automation, and mainframe software companies
such as Cadence Design, BMC Software, Compuware, SAP, and Microsoft. Holdings in
leisure stocks, primarily lodging and media companies, also helped performance.
The stocks of radio and television broadcasting companies such as Clear Channel
and Cox Radio were buoyed by positive advertising trends and continued
consolidation within their markets. Drug store and food retailers such as CVS,
Rite Aid, and Fred Meyer also contributed to performance because of strong
underlying growth and cost cutting opportunities generated by mergers and
acquisitions. The market finally recognized the many synergies of the
Portfolio's largest position, Cendant, the new company formed by the merger of
HFS and CUC International, two leading consumer service companies. The
Portfolio's second largest position, Tyco International (a diversified company)
contributed favorably as well due to additive acquisitions and strong internal
growth.
One area that did not perform as well as expected was healthcare, in particular
the stocks of HMO's. Higher than expected expenses more than offset price
increases, creating earnings disappointments. Now that these companies have a
more realistic view of the cost of doing business and should price their product
more realistically, earnings should begin to meet investors' expectations.
Looking ahead, the fundamental outlook for emerging growth stocks remains
positive. In 1998, we expect a slowing of economic growth and a continuation of
the benign interest rate environment that marked this past year. Emerging growth
stocks should generate stronger relative earnings growth than their large cap,
multinational counterparts who are typically more exposed to the turmoil in
Asia. Robust earnings combined with attractive valuations should help
performance. We believe that our strategy of searching out rapidly growing
companies, early in their development, and growth stocks at reasonable prices
should reward investors in 1998.
John Ballen and Toni Shimura, Portfolio Managers
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INVESTMENT OBJECTIVE
Long-term growth of capital.
INVESTMENT POLICY
Primarily (i.e., at least 80% of its assets under normal circumstances) in
common stocks of emerging growth companies that the Adviser believes are early
in their life cycle but which have the potential to become major enterprises.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ........................... $101.8 million
Number of Issues ................................ 210
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Cendant Corp. ................. Professional Services
Tyco International Ltd. ... Diversified-Miscellaneous
Computer Associates Int'l Inc. .......... Electronics
Cisco Systems Inc. ................. Office Equipment
Oracle Corp. ....................... Office Equipment
United Healthcare Corp. ................... Insurance
BMC Software Inc. ....................... Electronics
Compuware Corp. ............... Professional Services
Microsoft, Inc. ......................... Electronics
Cadence Design Systems, Inc. ............ Electronics
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ......................... 92.3%
Foreign Common Stock ........................... 0.3%
Foreign Preferred Stock ........................ 2.0%
Short-Term & Other ............................. 5.4%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
MFS Emerging Growth Companies Portfolio ............ 22.42%
(2)Russell 2000 .................................... 28.68%
(6)Lipper Mid Cap Funds Average..................... 26.03%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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MFS EMERGING GROWTH RUSSELL 2000
COMPANIES
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May 1, 1997 $10,000 $10,000
December 31, 1997 $12,242 $12,868
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MFS RESEARCH PORTFOLIO
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Over the past year sector weightings in the Portfolio have shifted. Most
notably, the financial services sector has been increased by 6.8%. Within this
sector, several stocks contributed positively to the Portfolio's performance
during the second half of 1997, most notably PNC Bank, Corestates Financial, and
Comerica, Inc. These companies have developed solid competitive positions within
their industry, which continues to benefit from an environment of slow to
moderate growth, low inflation, and a trend toward consolidation.
The Portfolio has also increased its weighting in the technology sector by
approximately 4.6%. While a number of companies within the technology sector
dampened the returns of the Portfolio in the latter half of 1997, we view this
as a derivative of the Southeast Asian crisis, where uncertain demand and
negative currency impact have significantly affected certain stocks. The
Portfolio remains cautious on the impact of Southeast Asian developments and as
a result there have been a number of changes, with an emphasis toward companies
that possess strong secular growth opportunities. Oracle, for example, is one
company that has been affected by the "Asian Flu," coupled with a disappointing
earnings report in November. We will be monitoring their situation closely.
The Portfolio will continue to seek fundamentally strong companies to add in the
year ahead. The Portfolio continues to be based upon our best research within
specific industries. The stocks are selected after careful, in-depth fundamental
analysis of the earnings outlook of the companies. These companies typically
demonstrate: dominant and/or growing market share, quality new/existing
products, superior management teams, and strong financial statements. Portfolio
sector/industry weightings are a fallout of the "best ideas" stock selection
process. However, we revisit weightings regularly to assure agreement within the
changing economic landscape.
Portfolio Management Team
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INVESTMENT OBJECTIVE
Long-term growth of capital and future income.
INVESTMENT POLICY
A substantial portion of assets invested in common stock or securities
convertible into common stock of companies believed by the Adviser to possess
better than average prospects for long-term growth.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ........................... $116.8 million
Number of Issues ................................ 111
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Tyco International Ltd. ............... Miscellaneous
Bristol-Myers Squibb Co........................ Drugs
Microsoft, Inc. ......................... Electronics
Colgate Palmolive Co. ............ Soaps & Toiletries
Cendant Corp. ................. Professional Services
Philip Morris Companies, Inc. ............... Tobacco
United Healthcare Corp. ................... Insurance
United Technologies Corp. ................. Aerospace
Gillette Co. ..................... Soaps & Toiletries
Coca Cola Co. ............................. Beverages
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ......................... 93.8%
Foreign Common Stock ........................... 2.5%
Short-Term & Other ............................. 3.7%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
MFS Research Portfolio .................................. 16.07%
(1)S&P 500 .............................................. 22.55%
(6)Lipper Growth Funds Average........................... 21.82%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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MFS RESEARCH S&P 500
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May 1, 1997 $10,000 $10,000
December 31, 1997 $11,607 $12,255
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EQ/PUTNAM BALANCED PORTFOLIO
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Through mid-year the Portfolio benefited from its equity holdings in paper and
forest products, publishing, airlines, and banks, and from companies that stood
to gain from global growth or consolidation.
By the fourth quarter, less-cyclical stocks led the market. Our overweight
position in the especially strong utility sector boosted performance as did our
holdings in the robust telecommunications sector. Basic materials, capital
goods, technology, energy, and railroads declined during the quarter on fears of
an Asia-induced economic slowdown.
The U.S. bond market, benefiting from investors' perceptions that the Asian
crisis would have a deflationary impact and would lead to lower yields, recorded
robust gains during the second quarter. The Portfolio's bond component benefited
from overweighting leading corporate and asset-backed sectors. By the third
quarter, a conservative duration posture and a bias toward mortgage-backed
securities dampened returns during September's bond market rally. Finally, this
component underperformed in the fourth quarter due to a slightly defensive
duration stance. Overweighting corporate bonds, particularly Yankee bonds, also
constrained performance, while overweighting mortgage-backed securities boosted
returns somewhat.
Looking ahead, we believe that the U.S. equity market should show modest
appreciation in 1998. International equity markets, particularly
emerging-markets equity, have sold off sharply in the wake of the Asian crisis.
This created value in certain markets, including the U.K. and Mexico, but caused
fundamentals to weaken in others, such as in the markets of Hong Kong, Japan,
and Brazil. With inflationary pressures easing in our opinion and with U.S.
yields continuing to look more attractive on a global basis, our outlook for the
U.S. bond market remains optimistic; however, at current yield levels,
appreciation opportunities for bonds are not as compelling as for stocks.
Edward Bousa, Kenneth Taubes and Robert Paine, Portfolio Managers
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INVESTMENT OBJECTIVE
Balanced investment.
INVESTMENT POLICY
Primarily in a well-diversified portfolio of stocks and bonds that will produce
both capital growth and current income.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets .............................. $25.9 million
Number of Issues .................................. 211
Average Years to Maturity (fixed income only) ... 11.77
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Philip Morris Companies, Inc. ................. Tobacco
Exxon Corp. ............................ Oil - Domestic
American Home Products Corp...................... Drugs
Mobil Corp. ............................ Oil - Domestic
Weyerhaeuser Company ............................ Paper
E.I. Dupont DeNemours &Co. .................. Chemicals
Banc One Corp.. ................................. Banks
SBC Communications ................ Utility - Telephone
British Petroleum Co. (ADR) ....... Oil - International
Baxter International, Inc. Hospital Supplies & Services
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ........................... 57.6%
Domestic Preferred Stock ......................... 0.4%
Foreign Common Stock ............................. 3.5%
Bonds ........................................... 32.6%
Short-Term & Other ............................... 5.9%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
EQ/Putnam Balanced Portfolio ............................ 14.38%
(5)60% S&P 500/40% Lehman Gov't/Corp .................... 17.17%
(6)Lipper Balanced Funds Average......................... 15.83%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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EQ/PUTNAM BALANCED 60% S&P 500/40%
LEHMAN GOV'T/CORP
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May 1, 1997 $10,000 $10,000
December 31, 1997 $11,438 $11,717
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EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
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In the first quarter of 1997, growth stocks, particularly in the technology
sector, sold off and the market focus narrowed to large-cap, value-oriented
stocks. In the second quarter, U.S. equities soared to record levels with
technology and growth-oriented pharmaceutical stocks racing ahead of the market.
Value stocks could not keep pace with the select large-cap growth stocks that
pushed the S&P 500 up a breathtaking 17.44% for the quarter.
In the third quarter, the Portfolio's position in financial services and energy
sectors, plus an underweighting in the lagging consumer growth and health-care
sectors, all contributed to outperformance. By year-end, the Portfolio benefited
from strong issue selection in the financial, utility, and health-care sectors
but was hindered by overweighting the basic industrial, energy, and capital
goods sectors. Weak stock selection in the poor-performing technology sector
also had a negative impact on performance.
The outlook for large-cap value-oriented portfolios remains favorable. Inflation
has remained modest, interest rates are declining, and corporate profit growth
is positive. Valuations are still attractive relative to the general market. In
addition, the backlash from the ongoing currency and economic upheavals in Asia
is creating opportunities for value investors, particularly in the technology
area, but also in the predominantly domestic sectors such as utilities,
telecommunications, and transportation.
Anthony Kreisel, Portfolio Manager
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INVESTMENT OBJECTIVE
Capital growth and, secondarily, current income.
INVESTMENT POLICY
Primarily common stocks that offer potential for capital growth and may,
consistent with the Portfolio's investment objective, invest in common stocks
that offer potential for current income.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ........................... $150.4 million
Number of Issues ................................ 107
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
PNC Bank Corp.................................. Banks
Xerox Corp.......................... Office Equipment
Pharmacia & Upjohn, Inc. ...................... Drugs
Merck & Co., Inc............................... Drugs
IBM Corp............................ Office Equipment
Hewlett Packard Co. ................ Office Equipment
Kimberly Clark Corp............................ Paper
Bristol-Myers Squibb, Co. ..................... Drugs
Intel Corp............................... Electronics
Computer Associates Int., Inc. .......... Electronics
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ......................... 87.7%
Foreign Common Stock ........................... 3.7%
Short-Term & Other ............................. 8.6%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
on May 1, 1997
EQ/Putnam Growth & Income Value Portfolio ............... 16.23%
(1)S&P 500 .............................................. 22.55%
(6)Lipper Growth & Income Funds Average ................. 21.37%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
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EQ/PUTNAM GROWTH & S&P 500
INCOME VALUE
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May 1, 1997 $10,000 $10,000
December 31, 1997 $11,623 $12,255
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EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
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The trend in international stocks told two vastly different tales. Continental
Europe, as measured by the MSCI Europe Index (+23.8% in U.S. dollar terms),
experienced strong gains during much of the year amid steady growth, low
interest rates, modest inflationary pressures, and corporate restructurings and
consolidations. Best performers in 1997 among individual countries were
Switzerland (+44.3%), Italy (+35.5%), and Denmark (+34.5%).
It was quite a different story in Asia, of course, where economic turmoil
reached crisis proportions as the year progressed. Erupting late summer in
Thailand before spreading to Malaysia, Indonesia, and the Philippines, the
"Asian flu" worsened during the fourth quarter in Hong Kong, South Korea, and
Japan. The troubles pushed markets sharply lower throughout Asia while
restraining virtually all other world markets.
For the year as a whole, country allocation, relative to the MSCI EAFE Index,
contributed most significantly to the Portfolio's outperformance, although both
stock selection and currency hedging were strongly positive. The underweighting
of the Portfolio in Japan and Malaysia and the overweighting in the Netherlands,
Ireland, Sweden, France, and Switzerland were the largest market positives. In
hindsight, our avoidance of Spain and our underweight in Italy were costly
country allocation decisions. Excellent stock picking in Japan was the most
important element of the Portfolio's stock return in 1997.
Justin Scott, Portfolio Manager
================================================================================
INVESTMENT OBJECTIVE
Capital Appreciation
INVESTMENT POLICY
Primarily a diversified portfolio of equity securities of companies organized
under laws of countries other than the United States.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................ $57.7 million
Number of Issues ................................ 104
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Vodafone Group plc ............... Telecommunications
United Bank of Switzerland..................... Banks
Nestle S.A. ................................... Foods
Cie Generale des Eaux ........ Food Services, Lodging
Sony Corp. .......... Household Furniture, Appliances
Elf Acquitaine S.A. ............. Oil - International
Scor ...................................... Insurance
Bayerische Motoren Verek AG .......... Autos & Trucks
B.A.T. Industries plc ....................... Tobacco
Philips Electronics N.V. ....... Electrical Equipment
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Foreign Common Stock ........................... 87.0%
Short-Term & Other ............................. 13.0%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
EQ/Putnam International Equity Portfolio ................ 9.58%
(3)MSCI EAFE ............................................ 2.85%
(6)Lipper International Funds Average ................... 3.76%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
EQ/PUTNAM MSCI EAFE
INTERNATIONAL EQUITY
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
December 31, 1997 $10,958 $10,285
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
Large-cap stocks led the market for most of the year, though mid- and small-cap
stocks rallied dramatically in the third quarter. During that period, large-cap
multinationals began to reflect some weakening in overseas earnings. By
year-end, small-cap indices suffered from a significant pullback in technology
stocks.
In early 1997 value-oriented stocks outperformed growth stocks in a continuing
trend that began in 1996; growth stocks then rallied as the stable growth
earnings environment became evident. As uncertainty surrounding the economic and
financial outlook of Southeast Asia increased, investors focused on earnings. In
the fourth quarter, both growth and value stocks produced mixed results, though
value stocks made up many top-performing sectors.
Overweighting the robust finance and consumer product sectors aided performance
as did underweight exposure -- but solid stock selection -- in the lagging
energy and basic industry sectors. Stock selection was particularly strong among
banks and computer software stocks.
Overweight exposure to the technology sector, which retreated in the fourth
quarter, and underweight exposure to utilities, which staged a late-year rally,
hindered relative performance. Additionally, stock selection lagged in some
cyclical industries.
Looking ahead, our goal is to identify corporations whose earnings growth can
sustain the uncertainties of the global economy while benefiting from U.S.
economic growth. We continue to overweight technology (though less heavily than
previously) with an emphasis on software and PC stocks. We remain overweighted
in finance. In consumer products, we are overweighted in retail, lodging, and
publishing. We are positioned to take advantage of the more defensive consumer
staples sector and we are maintaining a significant exposure to major
pharmaceutical companies while reducing our exposure to health services.
Finally, we remain underweighted in energy, capital goods, and basic industry
due to the less-than-robust global economic outlook for commodity cyclicals.
C. Beth Cotner, Richard England, Manual Weiss Herrero, and David Santos,
Portfolio Managers
================================================================================
INVESTMENT OBJECTIVE
Long-term growth of capital and any increased income that results from this
growth.
INVESTMENT POLICY
Primarily common stocks that the Adviser believes afford the best opportunity
for long-term capital growth.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................ $39.7 million
Number of Issues ................................. 81
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
General Electric Co. .............. Electrical Equipment
Gannett Co. ......... Printing, Publishing, Broadcasting
CVS Corp. ............................. Retail - General
BankAmerica Corp. ................................ Banks
Pfizer, Inc. ..................................... Drugs
Microsoft, Inc. ............................ Electronics
Proctor & Gamble, Co. ............... Soaps & Toiletries
American Express Co. ................ Financial Services
Bristol-Myers Squibb Co. ......................... Drugs
Tyco International, Ltd. ... Diversified - Miscellaneous
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ............................ 95.7%
Foreign Common Stock .............................. 0.4%
Short-Term & Other ................................ 3.9%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
EQ/Putnam Investors Growth Portfolio .................... 24.70%
(1)S&P 500 .............................................. 22.55%
(6)Lipper Growth Funds Average........................... 21.82%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
EQ/PUTNAM INVESTORS S&P 500
GROWTH
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
December 31, 1997 $12,470 $12,255
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
The past year was characterized by tremendous stock market volatility. Equities
struggled in the first quarter, particularly in the small-capitalization sector.
Then prices rebounded sharply in the second and third quarters. The fourth
quarter returned to a pattern of mixed results as weakness in October,
culminating with the decline of 554 points for the Dow Jones Industrial Average
on October 27, was more than offset by steady gains in November and December.
In this volatile environment, we tried to tune out as much short-term noise as
possible by identifing reasonably valued investment opportunities with
attractive yields and price-to-earnings ratios, good upside potential, and
limited downside risk.
Electric utility and telephone company sectors have performed well recently
after a long period of underperformance, as investors have sought the relative
safety of equities with higher dividend yields. Strong price appreciation in
stocks such as Bell Atlantic, BellSouth, BGE, and Unicom helped the Portfolio's
return in the recent months.
The equity market has provided investors with three unprecedented years of
prosperity, and the investment environment has been exceptionally conducive to
good returns. As prices have advanced, the market's valuation appeal and likely
near-term upside potential have diminished.
We are mindful of how virtually impossible it is to make accurate market
predictions, and we never try to manage the Portfolio based on someone else's
market forecasts. However, we do question how long the "delinkage" between the
underlying rate of corporate earnings and dividend growth and the more rapid
advance of security prices can continue.
Brian Rogers, Portofolio Manager
================================================================================
INVESTMENT OBJECTIVE
Substantial dividend income and also capital appreciation.
INVESTMENT POLICY
Primarily dividend paying common stocks of established companies.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................. $99.9 million
Number of Issues ................................. 158
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Mellon Bank Corp. .............................. Banks
AT&T Corp......................... Utility - Telephone
Dow Chemical Co. .............. Chemicals - Speciality
Atlantic Ritchfield Co. ............... Oil - Domestic
American Home Products Corp. ................... Drugs
Union Pacific Corp. ........................ Railroads
Alltel Corp. ..................... Utility - Telephone
SBC Communications, Inc. ......... Utility - Telephone
Exxon Corp. ........................... Oil - Domestic
Anheuser-Busch Companies, Inc. ............. Beverages
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock .......................... 89.2%
Foreign Common Stock ............................ 1.9%
Short-Term & Other .............................. 8.9%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
T. Rowe Price Equity Income Portfolio ................... 22.11%
(1)S&P 500 .............................................. 22.55%
(6)Lipper Equity Income Funds Average.................... 21.84%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
T. ROWE PRICE EQUITY S&P 500
INCOME
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
December 31, 1997 $12,211 $12,255
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
- --------------------------------------------------------------------------------
1997 ended on a disappointing note for international equities. The currency
crisis which had started in Thailand quickly spread to other Asian stock
markets. Japan, a country whose economic health is closely tied to the health of
the Pacific region, both in terms of export demand and bank lending, was also
affected. Korea, with an over-leveraged corporate sector, was one of the markets
most dramatically impacted, requiring intervention by the International Monetary
Fund to stabilize the financial markets. After initial sell-offs that developed
in sympathy with Asia's troubled markets, the U.S. and Europe recovered nicely.
The outlook remains reasonable for European markets with corporate profits
growth likely to be strong supported by good economic growth and further
restructuring.We believe that Latin American markets remain attractive given
continued commitment to political and economic reform in the region. The
relative resilience of these markets in recent months despite the problems in
the Pacific has been encouraging.
Prospects for Asia are more uncertain and we remain cautious about the prospects
for the region's smaller markets as we believe that their problems are more
deep-seated than is generally realised. Similarly, we remain cautious on the
Japanese market -- the economic outlook there is poor and the problems of the
banking sector remain severe.
While there may be some bounces in markets which have fallen a long way already,
we believe it is a time to be particularly selective when looking at stocks
traded in Asia. Our strategy is to remain in an underweight and defensive
posture in Asia until we have some conviction that the crisis of confidence is
past.
Thus, we expect that 1998 performance is likely to be driven by the European and
Latin American equity markets, with Asia remaining fragile.
Martin G. Wade, Portfolio Manager
================================================================================
INVESTMENT OBJECTIVE
Long-term growth of capital.
INVESTMENT POLICY
Primarily common stocks of established non-United States companies.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ................................. $74.6 million
Number of Issues ..................................... 316
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
National Westminster Bank .......................... Banks
Royal Dutch Petroleum Co. ............ Oil - International
Smithkline Beecham, plc ............................ Drugs
Novartis AG ........................................ Drugs
Diageo, plc .................................... Beverages
Reed International, plc Printing, Publishing, Broadcasting
Shell Transport & Trading Co., plc ... Oil - International
Wolters Kluwer N.V. ........ Oil - Supplies & Construction
Glaxo Welcome, plc ................................. Drugs
Roche Holdings AG .................................. Drugs
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Foreign Common Stock ............................... 86.9%
Foreign Preferred Stock ............................. 1.9%
Short-Term & Other ................................. 11.2%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
T. Rowe Price International Stock Portfolio .............. (1.49)%
(3)MSCI EAFE .............................................. 2.85%
(6)Lipper International Funds Average ..................... 3.76%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
T. ROWE PRICE MSCI EAFE
INTERNATIONAL STOCK
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
December 31, 1997 $9,851 $10,285
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
During the first quarter of 1997, small caps generally lagged their larger-cap
counterparts by a sizable margin, with investors clearly preferring the latter
group's greater liquidity and perceived earnings stability. This trend began to
reverse in May, however, as the market took note of small-caps' compelling
valuations and more favorable earnings prospects vs. those of larger caps.
Additionally, several blue-chip companies that had previously paced the market's
advance issued profit warnings in the latter part of the reporting period. This
combination prompted many investors to shift assets toward the small-cap area,
including small-cap value stocks.
The Portfolio's financial stocks, which constitute one of the Portfolio's
largest sector weightings, were particularly good performers, buoyed in part by
a favorable interest-rate environment and ongoing industry-wide consolidation.
(It should be stressed that the Portfolio's sector weightings are by-products of
a company-by-company stock selection process, and not bets on specific
industries.) We found a number of very attractively valued stocks in the
insurance area, as well as in the brokerage and banking areas.
At year-end we remain positive on the prospects for small-cap stocks generally,
as well as for the Portfolio's holdings in particular. The low-multiple, lesser
known stocks targeted by the Portfolio may offer unrecognized value that the
market will come to acknowledge - though the timing of such recognition is
difficult to predict. Typically, several quarters of improving fundamentals are
necessary to fully revive an underfollowed stock.
We believe that the heavy domestic bias of small-cap stocks as well as strong
earnings projections for the group may contribute to a positive market
reassessment of small companies. Given this backdrop, we remain focused on
identifying companies undergoing changes (such as restructurings or new
management) that stand to significantly improve longer-term profitability and
stock performance.
George Wyper and Kyle F. Frey, Portfolio Managers
================================================================================
INVESTMENT OBJECTIVE
Long-term capital appreciation.
INVESTMENT POLICY
Primarily in a portfolio of equity securities of small capitalization companies
(i.e., companies having market capitalizations of $1 billion or less at the time
of initial purchase) that the Adviser considers to be relatively undervalued.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................. $120.9 million
Number of Issues ................................... 53
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Allied Products Corp. ....................... Machinery
Commerce Group, Inc. ........................ Insurance
Avondale Industries, Inc. ..... Building & Construction
Fingerhut Cos. Inc. .................... Retail General
Terra Nova Bermuda Holdings Ltd. (Class A) .. Insurance
Delphi Financial Group (Class A) ............ Insurance
American Safety Razor Co. ........... Soap & Toiletries
Standex International Corp. ..... Professional Services
NAC Re Corp. ................................ Insurance
Texas Regional Bancshares, Inc. ................. Banks
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Domestic Common Stock ........................... 86.3%
Foreign Common Stock ............................. 4.1%
Short-Term & Other ............................... 9.6%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
May 1, 1997
Warburg Pincus Small Company Value Portfolio .............. 19.15%
(2)Russell 2000 ........................................... 28.68%
(6)Lipper Small Cap Funds Average ......................... 30.28%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
WARBURG PINCUS SMALL RUSSELL 2000
COMPANY VALUE
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
December 31, 1997 $11,915 $12,868
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
The Portfolio's country allocation was marked by an overweighting in Russia,
India, Pakistan and Turkey, combined with an underweighting in Asia during 1997.
We began easing into Asia in the third and fourth quarters as we felt that both
the currency and stock markets had dramatically overshot fair-value benchmarks.
Asian markets are down 70% - 85% from their highs and have discounted economic
devastation and corporate bankruptcies. While we believe that the near-term
economic and earnings outlook for the Asian countries is grim, we feel that the
worst has been discounted in the prices of stocks and the currencies. These
markets have been tremendously oversold, and in the face of such negative
sentiment, any marginally positive news could ignite a huge rally in the region.
We are slightly underweight in Latin America and expect to decrease our exposure
even further. The Brazilian Real is perhaps one of the more overvalued
currencies in the emerging market universe, and the high real interest rates
required to support it in the aftermath of the Asian crisis will prove
burdensome both for the corporate sector and for equity market performance.
Mexico has performed spectacularly in the past 12 months. As a result, though,
many of the Mexican stocks we own no longer offer compelling value, and will
likely be trimmed to gain exposure to other investments in Asia.
We continue to view India and South Africa as a source of funds for our
increased exposure in Asia. India is well underpinned by both valuations and
corporate fundamentals; however, we believe that political uncertainty and
slightly higher interest rates will cap some of the upside in the market.
In Europe, Russia has had a big correction after a stellar run. We continue to
remain sanguine about its long term prospects but have trimmed our position a
bit. Likewise, Turkey experienced tremendous returns over the last year, and
remains one of the last markets that have yet to conquer inflation. Positive
news on this front could trigger another move up. As valuations remain at
attractive levels, we are overweighted in in the Turkish market.
Madhav Dhar and Robert Meyer, Portfolio Managers
================================================================================
INVESTMENT OBJECTIVE
Long-term capital appreciation.
INVESTMENT POLICY
Primarily equity securities of emerging market country issuers with a focus on
those in which the Adviser believes the economies are developing strongly and in
which the markets are becoming more sophisticated.
PORTFOLIO SUMMARY, AS OF DECEMBER 31, 1997
Net Assets ............................... $21.4 million
Number of Issues ................................... 171
LARGEST EQUITY HOLDINGS, AS OF DEC. 31, 1997
Telebras S.A. ...................... Utility - Telephone
LUKoil Holding (ADR)................ Oil - International
CRT ................................ Utility - Telephone
Femsa S.A., Class B........................... Beverages
ITC Ltd. (GDS).............................. Diversified
Telmex, Class L (ADR)............... Utility - Telephone
Surgutneftgaz (ADR)................. Oil - International
Yapi Ve Kredi Bankasi A.S. ....................... Banks
Pakistan Telecommunications Corp. .. Utility - Telephone
Korea Fund, Inc. .................... Investment Company
ASSET MIX DISTRIBUTION, AS OF DEC. 31, 1997
Foreign Common Stock ............................. 70.8%
Foreign Preferred Stock ........................... 7.2%
Investment Companies .............................. 4.3%
Other ............................................ 17.7%
TOTAL RETURN OF PORTFOLIO AGAINST BENCHMARKS
As of December 31, 1997
Since Inception
August 20, 1997
Morgan Stanley Emerging Markets Equity Portfolio .......... (20.16)%
(4)MSCI Emerging Markets Free ............................. (21.43)%
(6)Lipper Emerging Markets Funds Average................... (19.10)%
See the Notes on Performance preceding this section for a more detailed
description of benchmarks.
GROWTH OF $10,000 INVESTMENT AS OF DECEMBER 31, 1997
- -------------------------------------------------------------------------------
MORGAN STANLEY MSCI EMERGING MARKETS
EMERGING MARKETS FREE
EQUITY
- -------------------------------------------------------------------------------
May 1, 1997 $10,000 $10,000
August 20, 1997 $ 7,984 $ 7,857
- -------------------------------------------------------------------------------
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
<TABLE>
<CAPTION>
MERRILL LYNCH MERRILL LYNCH MFS
BASIC VALUE WORLD EMERGING GROWTH MFS
EQUITY STRATEGY COMPANIES RESEARCH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at value (Note 1)............................. $49,833,139 $18,127,805 $104,264,513 $118,995,193
Cash...................................................... 986 -- 84,138 66,023
Foreign cash ............................................. -- 716 -- --
Receivable for securities sold ........................... 40,625 -- 367,806 1,321,584
Unrealized appreciation of forward currency contracts
(Note 1) ................................................ -- 7,245 -- 852
Short-term investments held as collateral for loaned
securities............................................... 7,480,149 1,280,808 24,156,300 21,263,500
Receivable from Separate Accounts for Trust shares sold . 638,707 213,584 1,069,452 1,031,161
Dividends, interest and other receivables ................ 45,033 114,731 16,017 115,540
Deferred organizational costs (Note 1) ................... 27,134 27,134 27,134 27,134
Other assets ............................................. 615 359 1,471 1,593
--------------- --------------- --------------- --------------
Total assets ............................................ 58,066,388 19,772,382 129,986,831 142,822,580
--------------- --------------- --------------- --------------
LIABILITIES:
Payable to custodian ..................................... 6,210 10,263 17,050 18,440
Payable for securities purchased ......................... 969,312 11,867 3,634,170 4,476,506
Unrealized depreciation of forward currency contracts
(Note 1) ................................................ -- 22,520 625 --
Payable for deposits received for loaned securities ..... 7,480,149 1,280,808 24,156,300 21,263,500
Market value of swap agreement ........................... -- -- -- --
Interest payable on swap agreement........................ -- -- -- --
Distribution fees payable ................................ 9,185 3,572 19,270 22,017
Investment management fees payable ....................... 10,229 16,057 24,271 26,478
Trustees' fees payable ................................... 4,159 2,443 9,919 10,743
Payable to Separate Accounts for Trust shares redeemed .. 23,585 170,151 152,573 82,969
Overdraft payable ........................................ -- 294 -- --
Accrued expenses (Note 1)................................. 68,515 43,957 155,410 167,463
--------------- --------------- --------------- --------------
Total liabilities ....................................... 8,571,344 1,561,932 28,169,588 26,068,116
--------------- --------------- --------------- --------------
NET ASSETS ............................................... $49,495,044 $18,210,450 $101,817,243 $116,754,464
=============== =============== =============== ==============
Investments at cost ...................................... $49,880,569 $18,197,653 $104,024,470 $117,419,440
=============== =============== =============== ==============
Foreign cash at cost ..................................... -- $ 715 -- --
=============== =============== =============== ==============
Investments at value include repurchase agreements of ... -- -- -- --
=============== =============== =============== ==============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ......................................... $49,553,200 $18,718,868 $102,442,882 $116,061,846
Accumulated undistributed (overdistributed) net
investment income ...................................... 12,476 (6,214) (513) (19,539)
Accumulated undistributed (distributions in excess of)
net realized gain (loss) ............................... (23,202) (415,663) (865,006) (863,224)
Unrealized appreciation (depreciation) on investments
and foreign currency denominated assets and liabilities (47,430) (86,541) 239,880 1,575,381
--------------- --------------- --------------- --------------
NET ASSETS ............................................... $49,495,044 $18,210,450 $101,817,243 $116,754,464
=============== =============== =============== ==============
CLASS IB SHARES:
Net Assets. .............................................. $49,495,044 $18,210,450 $101,817,243 $116,754,464
=============== =============== =============== ==============
Shares outstanding (Unlimited amount authorized: no par
value) .................................................. 4,273,605 1,765,917 8,540,761 10,170,931
=============== =============== =============== ==============
Net asset value, offering and redemption price per share
(Note 1) ................................................ $ 11.58 $ 10.31 $ 11.92 $ 11.48
=============== =============== =============== ==============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
EQ/PUTNAM
BALANCED
PORTFOLIO
-------------
<S> <C>
ASSETS:
Investments at value (Note 1)............................. $26,969,538
Cash...................................................... --
Foreign cash ............................................. --
Receivable for securities sold ........................... 723,655
Unrealized appreciation of forward currency contracts
(Note 1) ................................................ 27,214
Short-term investments held as collateral for loaned
securities............................................... 3,471,977
Receivable from Separate Accounts for Trust shares sold . 422,832
Dividends, interest and other receivables ................ 151,861
Deferred organizational costs (Note 1) ................... 27,134
Other assets ............................................. 463
-------------
Total assets ............................................ 31,794,674
-------------
LIABILITIES:
Payable to custodian ..................................... 13,425
Payable for securities purchased ......................... 1,994,056
Unrealized depreciation of forward currency contracts
(Note 1) ................................................ 28,810
Payable for deposits received for loaned securities ..... 3,471,977
Market value of swap agreement ........................... --
Interest payable on swap agreement........................ --
Distribution fees payable ................................ 4,965
Investment management fees payable ....................... 11,701
Trustees' fees payable ................................... 3,146
Payable to Separate Accounts for Trust shares redeemed .. 339,326
Overdraft payable ........................................ 19,634
Accrued expenses (Note 1)................................. 54,046
-------------
Total liabilities ....................................... 5,941,086
-------------
NET ASSETS ............................................... $25,853,588
=============
Investments at cost ...................................... $26,126,525
=============
Foreign cash at cost ..................................... --
=============
Investments at value include repurchase agreements of ... $ 1,625,000
=============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ......................................... $24,919,195
Accumulated undistributed (overdistributed) net
investment income ...................................... (13,681)
Accumulated undistributed (distributions in excess of)
net realized gain (loss) ............................... 106,892
Unrealized appreciation (depreciation) on investments
and foreign currency denominated assets and liabilities 841,182
-------------
NET ASSETS ............................................... $25,853,588
=============
CLASS IB SHARES:
Net Assets. .............................................. $25,853,588
=============
Shares outstanding (Unlimited amount authorized: no par
value) .................................................. 2,305,399
=============
Net asset value, offering and redemption price per share
(Note 1) ................................................ $ 11.21
=============
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM T. ROWE PRICE WARBURG PINCUS MORGAN STANLEY
GROWTH & INCOME INTERNATIONAL INVESTORS T. ROWE PRICE INTERNATIONAL SMALL COMPANY EMERGING
VALUE EQUITY GROWTH EQUITY INCOME STOCK VALUE MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
$153,247,139 $57,559,806 $41,651,182 $101,517,669 $66,240,263 $124,405,135 $17,630,504
20,508 10,934 630 957 9,406,601 549 3,604,325
-- 8 -- -- -- -- 112,658
3,367,461 372,162 61,590 21,479 2,046,979 3,509,281 40,893
-- 33,227 -- -- 4,811 -- --
27,564,407 1,827,012 6,427,550 25,234,710 81,200 12,318,628 84,000
1,279,540 195,842 243,351 1,351,241 570,250 1,367,782 806,471
272,974 83,148 33,521 210,145 130,115 51,920 180,657
27,134 27,134 27,134 27,134 27,134 27,134 29,040
1,911 897 593 1,445 1,436 1,875 268
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
185,781,074 60,110,170 48,445,551 128,364,780 78,508,789 141,682,304 22,488,816
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
32,678 37,039 5,957 14,042 47,002 10,187 13,325
7,647,905 331,125 2,223,737 2,539,086 528,893 8,000,611 514,629
-- 77,844 -- 1,277 8,471 -- --
27,564,407 1,827,012 6,427,550 25,234,710 81,200 12,318,628 84,000
-- -- -- -- -- -- 72,597
-- -- -- -- -- -- 759
28,277 11,216 7,422 18,801 14,846 23,145 3,927
32,351 43,088 16,157 24,857 63,074 32,335 24,061
12,875 6,061 4,017 9,739 9,695 12,677 1,796
3,137 -- -- 422,653 3,026,305 210,732 304,423
-- -- -- -- -- -- --
199,722 98,639 66,105 152,305 157,334 194,315 36,668
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
35,521,352 2,432,024 8,750,945 28,417,470 3,936,820 20,802,630 1,056,185
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
$150,259,722 $57,678,146 $39,694,606 $ 99,947,310 $74,571,969 $120,879,674 $21,432,631
=============== =============== ============= =============== =============== ============== ==============
$150,432,226 $57,736,353 $39,112,790 $ 96,071,224 $69,853,575 $123,965,652 $20,540,628
=============== =============== ============= =============== =============== ============== ==============
-- $ 8 -- -- -- -- $ 112,395
=============== =============== ============= =============== =============== ============== ==============
$ 10,945,000 $ 4,416,000 $ 2,489,000 -- -- $ 15,180,000 --
=============== =============== ============= =============== =============== ============== ==============
$147,858,014 $58,016,512 $37,386,446 $ 94,408,169 $78,434,505 $121,906,177 $24,763,837
(42) 62,965 412 2,001 (20,377) (28) 33,290
(413,163) (179,261) (230,644) 91,125 (225,339) (1,465,958) (380,622)
2,814,913 (222,070) 2,538,392 5,446,015 (3,616,820) 439,483 (2,983,874)
- --------------- --------------- ------------- --------------- --------------- -------------- --------------
$150,259,722 $57,678,146 $39,694,606 $ 99,947,310 $74,571,969 $120,879,674 $21,432,631
=============== =============== ============= =============== =============== ============== ==============
$150,259,722 $57,678,146 $39,694,606 $ 99,947,310 $74,571,969 $120,879,674 $21,432,631
=============== =============== ============= =============== =============== ============== ==============
13,045,713 5,296,019 3,220,078 8,272,803 7,571,312 10,204,787 2,693,810
=============== =============== ============= =============== =============== ============== ==============
$ 11.52 $ 10.89 $ 12.33 $ 12.08 $ 9.85 $ 11.85 $ 7.96
=============== =============== ============= =============== =============== ============== ==============
</TABLE>
2
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
<TABLE>
<CAPTION>
BT
BT BT SMALL
EQUITY 500 INTERNATIONAL COMPANY JPM
INDEX EQUITY INDEX INDEX CORE BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at value (Note 1)................................. -- -- -- --
Cash.......................................................... $ 1,000 $ 1,000 $ 1,000 $ 1,000
Foreign cash ................................................. -- -- -- --
Receivable for securities sold ............................... -- -- -- --
Unrealized appreciation of forward currency contracts
(Note 1) .................................................... -- -- -- --
Short-term investments held as collateral for loaned
securities .................................................. -- -- -- --
Receivable from Separate Accounts for Trust shares sold ..... -- -- -- --
Dividends, interest and other receivables .................... -- -- -- --
Deferred organizational costs (Note 1) ....................... 31,340 31,340 31,340 31,340
Other assets ................................................. -- -- -- --
-------------- ----------------- ------------- -------------
Total assets ................................................ 32,340 32,340 32,340 32,340
-------------- ----------------- ------------- -------------
LIABILITIES:
Payable to custodian ......................................... -- -- -- --
Payable for securities purchased ............................. -- -- -- --
Unrealized depreciation of forward currency contracts
(Note 1) .................................................... -- -- -- --
Payable for deposits received for loaned securities ......... -- -- -- --
Market value of swap agreement ............................... -- -- -- --
Interest payable on swap agreement ........................... -- -- -- --
Distribution fees payable .................................... -- -- -- --
Investment management fees payable ........................... -- -- -- --
Trustees' fees payable ....................................... -- -- -- --
Payable to Separate Accounts for Trust shares redeemed ...... -- -- -- --
Overdraft payable ............................................ -- -- -- --
Accrued expenses (Note 1) .................................... 31,340 31,340 31,340 31,340
-------------- ----------------- ------------- -------------
Total liabilities ........................................... 31,340 31,340 31,340 31,340
-------------- ----------------- ------------- -------------
NET ASSETS ................................................... $ 1,000 $ 1,000 $ 1,000 $ 1,000
============== ================= ============= =============
Investments at cost .......................................... -- -- -- --
============== ================= ============= =============
Foreign cash at cost ......................................... -- -- -- --
============== ================= ============= =============
Investments at value include repurchase agreements of ....... -- -- -- --
============== ================= ============= =============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................. $ 1,000 $ 1,000 $ 1,000 $ 1,000
Accumulated undistributed (overdistributed) net investment
income ..................................................... -- -- -- --
Accumulated undistributed (distributions in excess of) net
realized gain (loss) ....................................... -- -- -- --
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ....... -- -- -- --
-------------- ----------------- ------------- -------------
NET ASSETS ................................................... $ 1,000 $ 1,000 $ 1,000 $ 1,000
============== ================= ============= =============
CLASS IB SHARES:
Net Assets. .................................................. $ 1,000 $ 1,000 $ 1,000 $ 1,000
============== ================= ============= =============
Shares outstanding (Unlimited amount authorized: no par
value) ...................................................... 100 100 100 100
============== ================= ============= =============
Net asset value, offering and redemption price per share
(Note 1) .................................................... $ 10.00 $ 10.00 $ 10.00 $ 10.00
============== ================= ============= =============
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
LAZARD LAZARD
LARGE CAP SMALL CAP
VALUE VALUE
PORTFOLIO PORTFOLIO
------------- -------------
<S> <C> <C>
ASSETS:
Investments at value (Note 1)................................. -- --
Cash.......................................................... $ 1,000 $ 1,000
Foreign cash ................................................. -- --
Receivable for securities sold ............................... -- --
Unrealized appreciation of forward currency contracts
(Note 1) .................................................... -- --
Short-term investments held as collateral for loaned
securities .................................................. -- --
Receivable from Separate Accounts for Trust shares sold ..... -- --
Dividends, interest and other receivables .................... -- --
Deferred organizational costs (Note 1) ....................... 31,340 31,340
Other assets ................................................. -- --
------------- -------------
Total assets ................................................ 32,340 32,340
------------- -------------
LIABILITIES:
Payable to custodian ......................................... -- --
Payable for securities purchased ............................. -- --
Unrealized depreciation of forward currency contracts
(Note 1) .................................................... -- --
Payable for deposits received for loaned securities ......... -- --
Market value of swap agreement ............................... -- --
Interest payable on swap agreement ........................... -- --
Distribution fees payable .................................... -- --
Investment management fees payable ........................... -- --
Trustees' fees payable ....................................... -- --
Payable to Separate Accounts for Trust shares redeemed ...... -- --
Overdraft payable ............................................ -- --
Accrued expenses (Note 1) .................................... 31,340 31,340
------------- -------------
Total liabilities ........................................... 31,340 31,340
------------- -------------
NET ASSETS ................................................... $ 1,000 $ 1,000
============= =============
Investments at cost .......................................... -- --
============= =============
Foreign cash at cost ......................................... -- --
============= =============
Investments at value include repurchase agreements of ....... -- --
============= =============
COMPONENTS OF NET ASSETS (NOTE 1):
Paid in capital ............................................. $ 1,000 $ 1,000
Accumulated undistributed (overdistributed) net investment
income ..................................................... -- --
Accumulated undistributed (distributions in excess of) net
realized gain (loss) ....................................... -- --
Unrealized appreciation (depreciation) on investments and
foreign currency denominated assets and liabilities ....... -- --
------------- -------------
NET ASSETS ................................................... $ 1,000 $ 1,000
============= =============
CLASS IB SHARES:
Net Assets. .................................................. $ 1,000 $ 1,000
============= =============
Shares outstanding (Unlimited amount authorized: no par
value) ...................................................... 100 100
============= =============
Net asset value, offering and redemption price per share
(Note 1) .................................................... $ 10.00 $ 10.00
============= =============
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
This page intentionally left blank
4
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF OPERATIONS
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
<TABLE>
<CAPTION>
MERRILL LYNCH MERRILL LYNCH MFS
BASIC VALUE WORLD EMERGING GROWTH MFS EQ/PUTNAM
EQUITY STRATEGY COMPANIES RESEARCH BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income* (Note 1):
Dividends................................ $ 158,359 $ 64,380 $ 298,852 $ 313,353 $ 130,923
Interest ................................ 209,813 153,151 150,316 191,421 246,934
Securities lending--Net ................. 861 635 2,903 3,161 1,593
--------------- --------------- --------------- ------------ -----------
Total income ........................... 369,033 218,166 452,071 507,935 379,450
--------------- --------------- --------------- ------------ -----------
Expenses (Notes 1, 2, 3, 4 and 5):
Investment management fee ............... 73,477 49,425 169,781 186,533 50,946
Administrative fees ..................... 27,203 28,431 38,940 39,701 27,837
Custody fees ............................ 16,537 27,330 45,119 47,392 32,420
Distribution fees--Class IB ............. 33,399 17,652 77,173 84,788 23,157
Printing and mailing expenses ........... 58,689 58,464 136,123 142,446 62,732
Professional fees ....................... 30,419 22,141 73,036 77,075 26,572
Interest expense on swap agreement ...... -- -- -- -- --
Trustees' fees .......................... 7,354 6,188 14,818 15,393 6,914
Amortization of deferred organizational
expense ................................ 4,207 4,207 4,207 4,207 4,207
Miscellaneous ........................... 1,706 1,452 4,340 4,977 1,707
--------------- --------------- --------------- ------------ -----------
Gross expenses ......................... 252,991 215,290 563,537 602,512 236,492
--------------- --------------- --------------- ------------ -----------
Waivers and reimbursements: (Note 6)
Waiver of administrative fees ........... (15,990) (14,798) (21,038) (21,668) (15,386)
Waiver of investment management fee .... (73,477) (49,425) (169,781) (186,533) (50,946)
Reimbursement from investment manager .. (49,983) (66,338) (110,330) (105,652) (86,793)
--------------- --------------- --------------- ------------ -----------
Total waivers and reimbursements ...... (139,450) (130,561) (301,149) (313,853) (153,125)
--------------- --------------- --------------- ------------ -----------
Net expenses ............................ 113,541 84,729 262,388 288,659 83,367
--------------- --------------- --------------- ------------ -----------
NET INVESTMENT INCOME ..................... 255,492 133,437 189,683 219,276 296,083
--------------- --------------- --------------- ------------ -----------
REALIZED AND UNREALIZED GAIN
(LOSS)(NOTE 1):
Realized Gain (Loss):
On securities ........................... 214,675 (228,480) 1,475,542 107,634 300,448
On options written ...................... (4,965) -- -- -- 360
On foreign currency transactions ....... -- (66,116) (2,900) (2,639) (19,108)
--------------- --------------- --------------- ------------ -----------
Realized gain (loss)--net ................ 209,710 (294,596) 1,472,642 104,995 281,700
--------------- --------------- --------------- ------------ -----------
Change in Unrealized Appreciation
(Depreciation):
On securities ........................... (47,430) (69,848) 240,043 1,575,753 843,013
On swap agreement ....................... -- -- -- -- --
On foreign currency transactions ....... -- (16,693) (163) (372) (1,831)
--------------- --------------- --------------- ------------ -----------
Unrealized appreciation
(depreciation)--net ..................... (47,430) (86,541) 239,880 1,575,381 841,182
--------------- --------------- --------------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)--NET .. 162,280 (381,137) 1,712,522 1,680,376 1,122,882
--------------- --------------- --------------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS................................ $ 417,772 $(247,700) $1,902,205 $1,899,652 $1,418,965
=============== =============== =============== ============ ===========
</TABLE>
- ------------
* Net of foreign taxes withheld on dividends of $5,247, $77, $1,474, $86,
$29,283, $2,919, $42,243 and $6,501 for the Merrill Lynch World
Strategy, MFS Emerging Growth Companies, MFS Research, EQ/Putnam
Balanced, EQ/Putnam International Equity, T. Rowe Price Equity Income,
T. Rowe Price International Stock and Morgan Stanley Emerging Markets
Equity Portfolios, respectively and on interest of $88 and $492 for the
Merrill Lynch World Strategy, and EQ/Putnam Balanced Portfolios,
respectively.
** Commencement of Operations
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
(FOR THE PERIOD
FROM
AUGUST 20** TO
DECEMBER 31, 1997)
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM T. ROWE PRICE WARBURG PINCUS MORGAN STANLEY
GROWTH & INTERNATIONAL INVESTORS T. ROWE PRICE INTERNATIONAL SMALL COMPANY EMERGING
INCOME VALUE EQUITY GROWTH EQUITY INCOME STOCK VALUE MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
$ 806,120 $ 192,295 $ 117,657 $ 810,390 $ 288,519 $ 260,345 $ 169,731
235,099 167,495 57,743 200,609 181,629 222,466 45,191
2,377 307 824 2,160 27 4,460 --
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
1,043,596 360,097 176,224 1,013,159 470,175 487,271 214,922
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
227,936 130,202 67,578 166,401 213,839 252,178 66,404
43,159 34,562 27,342 38,372 52,060 40,618 16,082
87,022 98,635 15,863 37,394 125,169 24,577 22,470
103,607 46,501 30,717 75,637 71,279 96,992 14,436
149,313 95,243 73,440 120,126 164,108 134,255 15,063
88,760 46,772 32,906 68,035 76,948 83,740 11,094
-- -- -- -- -- -- 759
17,178 10,363 8,017 13,703 15,855 16,081 1,796
4,207 4,207 4,207 4,207 4,207 4,207 2,301
5,122 3,036 2,042 4,384 5,174 5,208 960
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
726,304 469,521 262,112 528,259 728,639 657,856 151,365
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
(23,255) (17,841) (16,095) (20,996) (21,461) (23,405) (6,430)
(227,936) (130,202) (67,578) (166,401) (213,839) (246,485) (42,908)
(122,925) (98,225) (74,000) (83,697) (151,257) -- --
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
(374,116) (246,268) (157,673) (271,094) (386,557) (269,890) (49,338)
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
352,188 223,253 104,439 257,165 342,082 387,966 102,027
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
691,408 136,844 71,785 755,994 128,093 99,305 112,895
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
157,080 70,340 115,368 365,817 (221,255) (937,026) (409,056)
-- -- -- -- -- -- --
(8) 21,402 -- (15,287) (146,976) -- 5,754
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
157,072 91,742 115,368 350,530 (368,231) (937,026) (403,302)
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
2,814,913 (176,547) 2,538,392 5,446,445 (3,613,312) 439,483 (2,910,124)
-- -- -- -- -- -- (72,597)
-- (45,523) -- (430) (3,508) -- (1,153)
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
2,814,913 (222,070) 2,538,392 5,446,015 (3,616,820) 439,483 (2,983,874)
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
2,971,985 (130,328) 2,653,760 5,796,545 (3,985,051) (497,543) (3,387,176)
- -------------- --------------- ------------ --------------- --------------- -------------- -------------------
$3,663,393 $ 6,516 $2,725,545 $6,552,539 $(3,856,958) $(398,238) $(3,274,281)
============== =============== ============ =============== =============== ============== ===================
</TABLE>
6
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
<TABLE>
<CAPTION>
MERRILL LYNCH MERRILL LYNCH MFS
BASIC VALUE WORLD EMERGING GROWTH MFS
EQUITY STRATEGY COMPANIES RESEARCH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ............................... $ 255,492 $ 133,437 $ 189,683 $ 219,276
Realized gain (loss)--net ........................... 209,710 (294,596) 1,472,642 104,995
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated assets
and liabilities .................................... (47,430) (86,541) 239,880 1,575,381
--------------- --------------- --------------- --------------
Net increase (decrease) in net assets from
operations ......................................... 417,772 (247,700) 1,902,205 1,899,652
--------------- --------------- --------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IB:
Dividends from net investment income ............... (247,223) (75,981) (191,439) (225,007)
Dividends in excess of net investment income ....... -- (6,214) (513) (19,539)
Distributions from realized gains................... (209,710) -- (1,475,542) (107,634)
Distributions in excess of realized gains .......... (23,202) (187,184) (865,006) (863,224)
--------------- --------------- --------------- --------------
Total Class IB dividends and distributions .......... (480,135) (269,379) (2,532,500) (1,215,404)
--------------- --------------- --------------- --------------
Decrease in net assets from dividends and
distributions ...................................... (480,135) (269,379) (2,532,500) (1,215,404)
--------------- --------------- --------------- --------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IB:
Shares sold ........................................ 53,828,437 24,010,398 146,747,168 120,065,201
Shares issued in reinvestment of dividends and
distributions ..................................... 480,135 269,379 2,532,500 1,215,404
Shares redeemed .................................... (4,751,165) (5,552,248) (46,832,130) (5,210,389)
--------------- --------------- --------------- --------------
Net increase in net assets derived from share
transactions........................................ 49,557,407 18,727,529 102,447,538 116,070,216
--------------- --------------- --------------- --------------
INCREASE IN NET ASSETS ............................... 49,495,044 18,210,450 101,817,243 116,754,464
NET ASSETS, BEGINNING OF PERIOD ...................... -- -- -- --
--------------- --------------- --------------- --------------
NET ASSETS, END OF PERIOD* ........................... $49,495,044 $18,210,450 $101,817,243 $116,754,464
=============== =============== =============== ==============
SHARE TRANSACTIONS:
Class IB:
Shares sold ........................................ 4,633,508 2,241,153 12,281,631 10,512,264
Shares issued in reinvestment of dividends and
distributions ..................................... 42,265 26,332 219,454 108,421
Shares redeemed .................................... (402,168) (501,568) (3,960,324) (449,754)
--------------- --------------- --------------- --------------
Net increase ........................................ 4,273,605 1,765,917 8,540,761 10,170,931
--------------- --------------- --------------- --------------
</TABLE>
- ------------
* Including accumulated undistributed (overdistributed) net investment
income of $12,476, $(6,214), $(513), $(19,539), $(13,681), $(42),
$62,965, $412, $2,001, $(20,377), $(28) and $33,290 for the Merrill
Lynch Basic Value Equity, Merrill Lynch World Strategy, MFS Emerging
Growth Companies, MFS Research, EQ/Putnam Balanced, EQ/Putnam Growth &
Income Value, EQ/Putnam International Equity, EQ/Putnam Investors
Growth, T. Rowe Price Equity Income, T. Rowe Price International Stock,
Warburg Pincus Small Company Value and Morgan Stanley Emerging Markets
Equity Portfolios, respectively as of December 31, 1997.
** Commencement of Operations
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
EQ/PUTNAM
BALANCED
PORTFOLIO
-------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ............................... $ 296,083
Realized gain (loss)--net ........................... 281,700
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated assets
and liabilities .................................... 841,182
-------------
Net increase (decrease) in net assets from
operations ......................................... 1,418,965
-------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IB:
Dividends from net investment income ............... (279,057)
Dividends in excess of net investment income ....... (13,681)
Distributions from realized gains................... (196,041)
Distributions in excess of realized gains .......... --
-------------
Total Class IB dividends and distributions .......... (488,779)
-------------
Decrease in net assets from dividends and
distributions ...................................... (488,779)
-------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IB:
Shares sold ........................................ 32,089,702
Shares issued in reinvestment of dividends and
distributions ..................................... 488,779
Shares redeemed .................................... (7,655,079)
-------------
Net increase in net assets derived from share
transactions........................................ 24,923,402
-------------
INCREASE IN NET ASSETS ............................... 25,853,588
NET ASSETS, BEGINNING OF PERIOD ...................... --
-------------
NET ASSETS, END OF PERIOD* ........................... $25,853,588
=============
SHARE TRANSACTIONS:
Class IB:
Shares sold ........................................ 2,939,085
Shares issued in reinvestment of dividends and
distributions ..................................... 43,995
Shares redeemed .................................... (677,681)
-------------
Net increase ........................................ 2,305,399
-------------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
(FOR THE PERIOD
FROM
AUGUST 20** TO
DECEMBER 31, 1997)
EQ/PUTNAM EQ/PUTNAM EQ/PUTNAM T. ROWE PRICE WARBURG PINCUS MORGAN STANLEY
GROWTH & INCOME INTERNATIONAL INVESTORS T. ROWE PRICE INTERNATIONAL SMALL COMPANY EMERGING
VALUE EQUITY GROWTH EQUITY INCOME STOCK VALUE MARKETS EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
$ 691,408 $ 136,844 $ 71,785 $ 755,994 $ 128,093 $ 99,305 $ 112,895
157,072 91,742 115,368 350,530 (368,231) (937,026) (403,302)
2,814,913 (222,070) 2,538,392 5,446,015 (3,616,820) 439,483 (2,983,874)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
3,663,393 6,516 2,725,545 6,552,539 (3,856,958) (398,238) (3,274,281)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
(695,650) (99,488) (75,580) (742,913) -- (103,540) (59,226)
(1,258) -- -- -- (9,785) (204) --
(157,079) (70,340) (115,368) (274,692) -- -- --
(413,163) (179,261) (230,644) -- -- (528,932) --
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
(1,267,150) (349,089) (421,592) (1,017,605) (9,785) (632,676) (59,226)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
(1,267,150) (349,089) (421,592) (1,017,605) (9,785) (632,676) (59,226)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
150,166,887 58,043,736 37,267,750 104,824,753 100,986,940 170,997,522 35,354,533
1,267,150 349,089 421,592 1,017,605 9,785 632,676 59,226
(3,570,558) (372,106) (298,689) (11,529,982) (22,558,013) (49,719,610) (10,647,621)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
147,863,479 58,020,719 37,390,653 94,312,376 78,438,712 121,910,588 24,766,138
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
150,259,722 57,678,146 39,694,606 99,847,310 74,571,969 120,879,674 21,432,631
-- -- -- 100,000 -- -- --
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
$150,259,722 $57,678,146 $39,694,606 $ 99,947,310 $ 74,571,969 $120,879,674 $ 21,432,631
=============== =============== ============= =============== =============== ============== ===================
13,247,726 5,297,238 3,210,087 9,163,385 9,802,776 14,177,457 3,928,086
111,940 32,263 35,192 85,226 997 54,682 7,554
(313,953) (33,482) (25,201) (985,808) (2,232,461) (4,027,352) (1,241,830)
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
13,045,713 5,296,019 3,220,078 8,262,803 7,571,312 10,204,787 2,693,810
- --------------- --------------- ------------- --------------- --------------- -------------- -------------------
</TABLE>
8
<PAGE>
EQ ADVISORS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For December 31, 1997**
<TABLE>
<CAPTION>
BT
BT BT SMALL
EQUITY 500 INTERNATIONAL COMPANY JPM
INDEX EQUITY INDEX INDEX CORE BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................... -- -- -- --
Realized gain (loss)--net ............................... -- -- -- --
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated assets and
liabilities ............................................ -- -- -- --
-------------- ----------------- ------------- -------------
Net increase (decrease) in net assets from operations .. -- -- -- --
-------------- ----------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IB:
Dividends from net investment income ................... -- -- -- --
Dividends in excess of net investment income ........... -- -- -- --
Distributions from realized gains....................... -- -- -- --
Distributions in excess of realized gains............... -- -- -- --
-------------- ----------------- ------------- -------------
Total Class IB dividends and distributions............... -- -- -- --
-------------- ----------------- ------------- -------------
Decrease in net assets from dividends and distributions -- -- -- --
-------------- ----------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IB:
Shares sold ............................................ $1,000 $1,000 $1,000 $1,000
Shares issued in reinvestment of dividends and
distributions ......................................... -- -- -- --
Shares redeemed ........................................ -- -- -- --
-------------- ----------------- ------------- -------------
Net increase in net assets derived from share
transactions............................................ 1,000 1,000 1,000 1,000
-------------- ----------------- ------------- -------------
INCREASE IN NET ASSETS ................................... 1,000 1,000 1,000 1,000
NET ASSETS, BEGINNING OF PERIOD .......................... -- -- -- --
-------------- ----------------- ------------- -------------
NET ASSETS, END OF PERIOD ................................ $1,000 $1,000 $1,000 $1,000
============== ================= ============= =============
SHARE TRANSACTIONS:
Class IB:
Shares sold ............................................ 100 100 100 100
Shares issued in reinvestment of dividends and
distributions ......................................... -- -- -- --
Shares redeemed ........................................ -- -- -- --
-------------- ----------------- ------------- -------------
Net increase ............................................ 100 100 100 100
-------------- ----------------- ------------- -------------
</TABLE>
** The Portfolios that received initial capital on December 31, 1997 had
no operations except for the issuance of shares of Class IB Common
Stock.
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
LAZARD LAZARD
LARGE CAP SMALL CAP
VALUE VALUE
PORTFOLIO PORTFOLIO
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................... -- --
Realized gain (loss)--net ............................... -- --
Change in unrealized appreciation (depreciation) of
investments and foreign currency denominated assets and
liabilities ............................................ -- --
------------- -------------
Net increase (decrease) in net assets from operations .. -- --
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Class IB:
Dividends from net investment income ................... -- --
Dividends in excess of net investment income ........... -- --
Distributions from realized gains....................... -- --
Distributions in excess of realized gains............... -- --
------------- -------------
Total class IB dividends and distributions............... -- --
------------- -------------
Decrease in net assets from dividends and distributions -- --
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 1):
Class IB:
Shares sold ............................................ $1,000 $1,000
Shares issued in reinvestment of dividends and
distributions ......................................... -- --
Shares redeemed ........................................ -- --
------------- -------------
Net increase in net assets derived from share
transactions............................................ 1,000 1,000
------------- -------------
INCREASE IN NET ASSETS ................................... 1,000 1,000
NET ASSETS, BEGINNING OF PERIOD .......................... -- --
------------- -------------
NET ASSETS, END OF PERIOD ................................ $1,000 $1,000
============= =============
SHARE TRANSACTIONS:
Class IB:
Shares sold ............................................ 100 100
Shares issued in reinvestment of dividends and
distributions ......................................... -- --
Shares redeemed ........................................ -- --
------------- -------------
Net increase ............................................ 100 100
------------- -------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ----------- -----------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (12.9%)
CHEMICALS (5.1%)
E.I. Du Pont de Nemours & Co. ... 8,000 $ 480,500
Great Lakes Chemical Corp. ..... 25,000 1,121,875
Hercules, Inc. .................. 18,000 901,125
-----------
2,503,500
-----------
METALS & MINING (1.1%)
Asarco, Inc. .................... 25,000 560,937
-----------
PAPER (3.2%)
International Paper Co. ......... 20,000 862,500
Stone Container Corp.* .......... 70,000 730,625
-----------
1,593,125
-----------
STEEL (3.5%)
USX--U.S. Steel Group, Inc. .... 28,000 875,000
WHX Corp.* ...................... 70,000 831,250
-----------
1,706,250
-----------
TOTAL BASIC MATERIALS .......... 6,363,812
-----------
BUSINESS SERVICES (3.9%)
PRINTING, PUBLISHING,
BROADCASTING (3.9%)
Dow Jones & Co., Inc. ........... 17,000 912,688
Viacom, Inc., Class B* .......... 25,000 1,035,937
-----------
TOTAL BUSINESS SERVICES......... 1,948,625
-----------
CAPITAL GOODS (3.4%)
AEROSPACE (2.1%)
Lockheed Martin Corp. ........... 10,500 1,034,250
-----------
BUILDING MATERIALS & FOREST
PRODUCTS (1.3%)
Louisiana-Pacific Corp. ......... 35,000 665,000
-----------
TOTAL CAPITAL GOODS............. 1,699,250
-----------
CONSUMER CYCLICALS (11.5%)
AUTOS & TRUCKS (3.2%)
Ford Motor Co. .................. 13,500 657,281
General Motors Corp. ............ 15,000 909,375
-----------
1,566,656
-----------
LEISURE RELATED (1.1%)
Harrah's Entertainment, Inc.* .. 29,400 554,925
-----------
PHOTO & OPTICAL (2.9%)
Eastman Kodak Co. ............... 23,700 1,441,257
-----------
RETAIL--GENERAL (4.3%)
Charming Shoppes, Inc.* ......... 90,000 421,875
K-Mart Corp.* ................... 60,000 693,750
Sears Roebuck & Co. ............. 12,000 543,000
Woolworth Corp.* ................ 23,000 468,625
-----------
2,127,250
-----------
TOTAL CONSUMER CYCLICALS ...... 5,690,088
-----------
CONSUMER NON-CYCLICALS (9.5%)
BEVERAGES (2.4%)
Seagram Co., Ltd. ............... 36,000 1,163,250
-----------
CONTAINERS (1.1%)
Tupperware Corp. ................ 20,000 557,500
-----------
DRUGS (4.2%)
Bristol-Myers Squibb Co. ........ 5,000 473,125
Pharmaceutical Product
Development, Inc.* ............. 40,000 615,000
Pharmacia & Upjohn, Inc. ........ 27,500 1,007,187
-----------
2,095,312
-----------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- -----------
<S> <C> <C>
TOBACCO (1.8%)
Philip Morris Cos., Inc. ........ 19,500 $ 883,594
-----------
TOTAL CONSUMER NON-CYCLICALS 4,699,656
-----------
CREDIT SENSITIVE (15.1%)
BANKS (5.3%)
Bankers Trust New York Corp. ... 6,000 674,625
Hibernia Corp., Class A ......... 45,000 846,562
Wells Fargo & Co. ............... 3,250 1,103,172
-----------
2,624,359
-----------
INSURANCE (7.9%)
Aetna, Inc. ..................... 18,500 1,305,406
Humana, Inc.* ................... 48,900 1,014,675
TIG Holdings, Inc. .............. 28,000 929,250
Travelers Property & Casualty,
Inc., Class A .................. 15,000 660,000
-----------
3,909,331
-----------
UTILITY--TELEPHONE (1.9%)
AT&T Corp. ...................... 15,000 918,750
-----------
TOTAL CREDIT SENSITIVE ......... 7,452,440
-----------
DIVERSIFIED (1.8%)
MISCELLANEOUS (1.8%)
ITT Industries, Inc. ............ 28,000 878,500
-----------
ENERGY (6.7%)
OIL--DOMESTIC (4.5%)
Occidental Petroleum Corp. ..... 20,000 586,250
Union Texas Petroleum Holdings,
Inc. ........................... 40,000 832,500
Unocal Corp. .................... 20,000 776,250
-----------
2,195,000
-----------
OIL--INTERNATIONAL (1.4%)
YPF S.A., Class D (ADR) ......... 20,000 683,750
-----------
OIL--SUPPLIES & CONSTRUCTION (0.8%)
Dresser Industries, Inc. ........ 10,000 419,375
-----------
TOTAL ENERGY.................... 3,298,125
-----------
TECHNOLOGY (13.5%)
ELECTRONICS (6.0%)
Exabyte Corp.* .................. 50,800 327,025
Integrated Device Technology,
Inc.*........................... 50,000 471,875
Mentor Graphics Corp.* .......... 65,000 629,688
Novell, Inc.* ................... 70,000 525,000
Seagate Technology, Inc.* ...... 20,000 385,000
Texas Instruments, Inc. ......... 13,500 607,500
-----------
2,946,088
-----------
OFFICE EQUIPMENT (4.4%)
Apple Computer, Inc.* ........... 25,000 328,125
Digital Equipment Corp.* ........ 20,000 740,000
International Business Machines
Corp. .......................... 5,000 522,813
Scitex Corp., Ltd.* ............. 50,000 603,125
-----------
2,194,063
-----------
OFFICE EQUIPMENT SERVICES (1.1%)
CompuServe Corp.* ............... 45,000 545,625
-----------
TELECOMMUNICATIONS (2.0%)
U.S. West Media Group* .......... 35,000 1,010,625
-----------
TOTAL TECHNOLOGY ............... 6,696,401
-----------
TOTAL COMMON STOCKS (78.3%)
(Cost $38,774,327) ............. 38,726,897
-----------
</TABLE>
10
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------- ------------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (22.4%)
Federal Farm Credit Bank
(Discount Note), 1/2/98
(Amortized Cost $11,106,242) $11,108,000 $11,106,242
-------------
TOTAL INVESTMENTS (100.7%)
(Cost/Amortized Cost
$49,880,569) ................ 49,833,139
OTHER ASSETS
LESS LIABILITIES (-0.7%) (338,095)
-------------
NET ASSETS (100%) ............ $49,495,044
=============
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
11
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
- -----------------------------------------------------------------------------
Transactions in options written for the period from May 1, 1997, to December
31, 1997 are summarized as follows: (Note 1)
<TABLE>
<CAPTION>
NUMBER OF PREMIUMS
CONTRACTS (A) RECEIVED
------------- ----------
<S> <C> <C>
Options outstanding--May 1, 1997 ..... -- --
Options written ....................... 15 $ 8,392
Options closed ........................ (15) (8,392)
------------- ----------
Options outstanding--December 31, 1997 -- --
============= ==========
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $42,382,714
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 3,823,065
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation .. $ 2,084,262
Aggregate gross unrealized (depreciation) (2,132,841)
-------------
Net unrealized (depreciation) ............. $ (48,579)
=============
Federal income tax cost of investments ... $49,881,718
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $7,341,116, which was secured by collateral valued at $7,480,149.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $1,444 as brokerage commissions with Donaldson, Lufkin &
Jenrette Securities Corp. and $7,984 with Merrill Lynch & Co., Inc., both
affiliated broker/dealers.
- ------------
(a) One contract relates to 100 shares.
See Notes to Financial Statements.
12
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------- --------------
<S> <C> <C>
COMMON STOCKS:
AUSTRALIA & NEW ZEALAND (0.6%)
AUSTRALIA (0.6%)
Broken Hill Proprietary Ltd. ... 12,700 $ 117,896
--------------
CANADA (1.7%)
Gulf Canada Resources Ltd.* .... 17,000 119,000
Imax Corp.* ..................... 3,400 74,800
Magna International, Inc.,
Class A ........................ 1,900 119,344
--------------
TOTAL CANADA ................... 313,144
--------------
JAPAN (4.1%)
Amway Japan Ltd. ................ 5,000 95,804
Bridgestone Corp. ............... 4,000 86,760
Maeda Corp. ..................... 34,000 75,570
Matsushita Electric Industries
Co. ............................ 4,000 58,555
Matsushita Electric Works Ltd. . 12,000 103,928
Okumura Corp. ................... 25,000 59,399
Rohm Co. ........................ 1,000 101,935
Sony Corp. ...................... 1,000 88,906
Tokio Marine & Fire Insurance
Co. ............................ 6,000 68,059
--------------
TOTAL JAPAN .................... 738,916
--------------
LATIN AMERICA (3.1%)
ARGENTINA (0.4%)
YPF S.A., Class D (ADR) ......... 2,300 78,631
--------------
BRAZIL (0.9%)
Telebras S.A. (ADR) ............. 700 81,506
Unibanco (ADR)* ................. 2,500 80,469
--------------
161,975
--------------
MEXICO (1.8%)
Grupo Carso (ADR) ............... 6,400 85,261
Grupo Financiero Bancomer (ADR)* 7,300 94,896
Panamerican Beverages, Inc.,
Class A ........................ 2,200 71,775
Telmex, Class L (ADR) ........... 1,200 67,275
--------------
319,207
--------------
TOTAL LATIN AMERICA ............ 559,813
--------------
OTHER EUROPEAN COUNTRIES (7.3%)
FRANCE (1.5%)
Scor ............................ 2,600 124,330
SGS-Thomson Microelectronics
N.V.* .......................... 1,400 85,488
Thomson CSF ..................... 1,600 50,431
--------------
260,249
--------------
GERMANY (1.2%)
Bayerische Vereinsbank AG ...... 1,800 116,068
Mannesmann AG ................... 200 100,392
--------------
216,460
--------------
ITALY (2.3%)
Arnoldo Mondadori Editore ...... 19,100 150,079
Danieli & Co. ................... 35,100 126,193
Gucci Group N.V. ................ 3,300 138,188
--------------
414,460
--------------
<PAGE>
<CAPTION>
NUMBERS VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
<S> <C> <C>
NETHERLANDS (0.4%)
Royal Dutch Petroleum Co. (NY
Shares) ........................ 1,400 $ 75,863
--------------
SPAIN (0.6%)
Repsol S.A. (ADR) ............... 2,800 119,175
--------------
SWITZERLAND (1.3%)
Novartis AG (Registered) ........ 78 126,573
Roche Holdings AG ............... 12 119,178
--------------
245,751
--------------
TOTAL OTHER EUROPEAN COUNTRIES 1,331,958
--------------
SCANDINAVIA (4.8%)
FINLAND (2.2%)
Amer-Yhtymae OYJ, Class A* ..... 4,500 86,269
Finnlines OYJ ................... 2,000 79,619
Orion-Yhtymae OYJ, Class B ..... 4,620 122,048
Upm-Kymmene OYJ ................. 5,600 111,981
--------------
399,917
--------------
NORWAY (0.6%)
Color Line ASA .................. 27,300 105,344
--------------
SWEDEN (2.0%)
Castellum AB* ................... 9,200 91,538
Nordbanken Holding AB* .......... 8,400 47,502
Perstorp AB, Class B ............ 5,200 92,999
Forenings Sparbanken Kredit AS,
Class A. ....................... 3,000 68,200
Spectra-Physics AB, Class A .... 3,600 68,237
--------------
368,476
--------------
TOTAL SCANDINAVIA .............. 873,737
--------------
SOUTHEAST ASIA (0.8%)
INDONESIA (0.6%)
Indostat (ADR) .................. 5,300 102,356
--------------
PHILIPPINES (0.2%)
San Miguel Corp., Class B ...... 32,100 39,233
--------------
TOTAL SOUTHEAST ASIA ........... 141,589
--------------
SUB-SAHARAN AFRICA (1.2%)
SOUTH AFRICA (1.2%)
De Beers Consolidated Mines
(ADR) .......................... 5,500 112,406
Sasol Ltd. ...................... 10,700 111,914
--------------
TOTAL SUB-SAHARAN AFRICA ...... 224,320
--------------
UNITED KINGDOM (3.4%)
Danka Business Systems plc (ADR) 1,030 16,416
Dixons Group plc ................ 12,600 126,512
Guinness plc .................... 10,500 96,540
Imperial Chemical Industries
plc............................. 7,800 121,897
LucasVarity plc ................. 37,500 132,491
Rio Tinto plc (Registered) ..... 10,200 125,545
--------------
TOTAL UNITED KINGDOM ........... 619,401
--------------
UNITED STATES (30.4%)
Allied Signal, Inc. ............. 3,195 124,405
American Express Co. ............ 660 58,905
Avis Rent A Car, Inc.* .......... 2,050 65,472
Bank of New York Co., Inc. ..... 2,650 153,203
BankAmerica Corp. ............... 1,500 109,500
13
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ------------- --------------
Black & Decker Corp. ............ 2,820 $ 110,156
BMC Software, Inc.* ............. 1,230 80,719
Bristol-Myers Squibb Co. ........ 1,100 104,088
Brunswick Corp. ................. 4,400 133,375
Burlington Northern Santa Fe
Corp. .......................... 590 54,833
Carnival Corp., Class A ......... 3,000 166,125
Chancellor Media Corp.* ......... 780 58,208
Cisco Systems, Inc.* ............ 900 50,175
Compaq Computer Corp. ........... 550 31,041
Computer Associates
International, Inc. ............ 1,730 91,474
DENTSPLY International, Inc. ... 1,300 39,650
Dial Corp. ...................... 3,800 79,088
Edison International ............ 4,900 133,219
El Paso Natural Gas Co. ......... 2,300 152,950
Eli Lilly & Co. ................. 1,560 108,615
Enron Corp. ..................... 1,450 60,266
Federal-Mogul Corp. ............. 2,600 105,300
First Union Corp. ............... 2,250 115,313
Gartner Group, Inc., Class A* .. 1,500 55,875
GenCorp, Inc. ................... 2,400 60,000
General Electric Co. ............ 1,400 102,725
Glenborough Realty Trust, Inc. . 1,900 56,288
Harnischfeger Industries, Inc. . 1,650 58,266
Hartford Life, Inc., Class A ... 1,500 67,969
Healthsouth Corp.* .............. 4,700 130,425
Hertz Corp., Class A ............ 2,800 112,700
Ingersol Rand Co. ............... 2,600 105,300
International Business Machines
Corp. .......................... 600 62,738
MGIC Investment Corp. ........... 1,210 80,465
Microsoft Corp.* ................ 375 48,469
National Semiconductor Corp.* .. 3,000 77,812
OMI Corp.* ...................... 3,700 33,994
Orbital Sciences Corp.* ......... 550 16,362
Owens Illinois, Inc.* ........... 4,000 151,750
Pfizer, Inc. .................... 1,400 104,387
Prentiss Properties Trust ...... 2,655 74,174
Provident Cos., Inc. ............ 3,500 135,187
Quantum Corp.* .................. 2,450 49,153
Rite Aid Corp. .................. 1,175 68,958
Royal Caribbean Cruises Ltd. ... 1,700 90,631
Safeway, Inc.* .................. 1,400 88,550
Schlumberger Ltd. ............... 650 52,325
Sears Roebuck & Co. ............. 1,900 85,975
Smith International, Inc.* ..... 900 55,237
SPX Corp. ....................... 400 27,600
Starwood Lodging Trust .......... 770 44,564
Sun International Hotels Ltd.* . 1,100 41,387
Sunbeam Corp. ................... 2,300 96,887
Tele-Communications TCI Ventures
Group, Class A* ................ 3,305 93,573
Telecommunications, Inc.,
Class A* ....................... 4,570 127,674
Texas Utilities Co. ............. 2,100 87,281
Travelers Group, Inc. ........... 2,500 134,687
Travelers Property & Casualty,
Inc., Class A .................. 800 35,200
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ---------- --------------
<S> <C> <C>
Tricon Global Restaurants,
Inc.*........................... 2,000 $ 58,125
U.S. Air Group, Inc.* ........... 2,100 131,250
Unocal Corp. .................... 2,500 97,031
Unum Corp. ...................... 825 44,859
Wal-Mart Stores, Inc............. 2,000 78,875
Warner Lambert Co. .............. 800 99,200
Worldcom, Inc.* ................. 4,000 121,000
--------------
TOTAL UNITED STATES ............ 5,530,988
--------------
TOTAL COMMON STOCKS (57.4%)
(Cost $10,627,077) ............. 10,451,762
--------------
PREFERRED STOCKS:
OTHER EUROPEAN COUNTRIES (0.7%)
GERMANY (0.7%)
Henkel KGaA
(Cost $110,227) ................ 2,100 131,327
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
----------
LONG-TERM DEBT SECURITIES:
OTHER EUROPEAN COUNTRIES (7.8%)
<S> <C> <C> <C>
FRANCE (0.8%)
Government of France
5.50%, 10/25/07 ............ FRF 900,000 151,514
--------------
GERMANY (4.1%)
Republic of Germany
Series 86
6.00%, 6/20/16 .............. DEM 375,000 212,882
Series 95
6.50%, 10/14/05 ................ 175,000 105,236
Series 97
6.00%, 7/4/07 .................. 735,000 429,164
--------------
747,282
--------------
ITALY (2.5%)
Italian Treasury Bond (BTPS)
8.50%, 8/1/04 ............... ITL 675,000,000 446,349
--------------
SPAIN (0.4%)
Kingdom of Spain
7.90%, 2/28/02 .............. ESP 10,000,000 72,662
--------------
TOTAL OTHER EUROPEAN COUNTRIES 1,417,807
--------------
SCANDINAVIA (2.7%)
DENMARK (0.4%)
Kingdom of Denmark
7.00%, 11/15/07 ............. DKK 525,000 84,358
-------------
SWEDEN (2.3%)
Kingdom of Sweden,
Series 1037
8.00%, 8/15/07 .............. SEK 2,900,000 418,367
--------------
TOTAL SCANDINAVIA .............. 502,725
--------------
UNITED KINGDOM (2.3%)
United Kingdom Treasury Note
7.25%, 12/7/07 .............. GBP 235,000 413,738
--------------
</TABLE>
14
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------- ------------ ------------
<S> <C> <C>
UNITED STATES (12.5%)
U.S. Treasury Bond
6.625%, 2/15/27 .......... $1,235,000 $ 1,340,748
U.S. Treasury Note
6.00%, 8/15/99 ........... 475,000 477,524
6.50%, 5/31/02 ........... 80,000 82,375
6.625%, 5/15/07 .......... 360,000 381,263
------------
TOTAL UNITED STATES........ 2,281,910
------------
TOTAL LONG-TERM DEBT SECURITIES (25.3%)
(Cost $4,531,813) ......... 4,616,180
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (16.1%)
Federal Farm Credit Bank
(Discount Note), 1/2/98
(Amortized Cost
$2,928,536)................ 2,929,000 2,928,536
------------
TOTAL INVESTMENTS (99.5%)
(Cost/Amortized Cost
$18,197,653)............... 18,127,805
OTHER ASSETS
LESS LIABILITIES (0.5%) .. 82,645
------------
NET ASSETS (100%) .......... $18,210,450
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
MARKET SECTOR DIVERSIFICATION
(Unaudited)
As a Percentage of Total Equity Investments
Basic Materials ......................... 7.4%
Business Services ....................... 3.6
Capital Goods ........................... 11.9
Consumer Cyclicals ...................... 20.9
Consumer Non-Cyclicals .................. 13.1
Credit Sensitive ........................ 22.1
Diversified ............................. 3.2
Energy .................................. 5.6
Technology .............................. 12.2
--------
100.0%
========
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
GBP--British Pound
DKK--Danish Krone
FRF--French Franc
DEM--German Mark
ITL--Italian Lira
ESP--Spanish Peseta
SEK--Swedish Krona
15
<PAGE>
EQ ADVISORS TRUST
MERRILL LYNCH WORLD STRATEGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ---------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/14/98 .... 275 $460,969 $451,590 $ (9,379)
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollar, expiring 1/22/98 175 115,486 114,061 1,425
British Pound, expiring 1/14/98 .... 475 767,429 780,570 (13,141)
Canadian Dollar, expiring 3/17/98 .. 475 334,666 333,053 1,613
Japanese Yen, expiring 1/16/98 ..... 92,000 711,013 706,806 4,207
---------------
$(15,275)
===============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $17,761,434
U.S. Government securities ..................... 2,593,618
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 4,455,658
U.S. Government securities ..................... 380,376
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 721,066
Aggregate gross unrealized depreciation (848,461)
------------
Net unrealized (depreciation) ........... $ (127,395)
============
Federal income tax cost of investments . $18,255,200
============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $1,763,457, which was secured by collateral valued at $1,787,695 of which
$506,887 was in the form of U.S. Government securities.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $166 as brokerage commissions with Donaldson, Lufkin & Jenrette
Securities Corp., $181 with Fleming Martin and $2,622 with Merrill Lynch &
Co., Inc., all affiliated broker/dealers.
See Notes to Financial Statements
16
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (0.1%)
CHEMICALS--SPECIALTY (0.1%)
VWR Scientific Products Corp.* .. 1,700 $ 48,025
--------------
METALS & MINING (0.0%)
Rock of Ages Corp., Class A* .... 100 1,550
--------------
PAPER (0.0%)
Ikon Office Solutions, Inc. ..... 700 19,688
--------------
TOTAL BASIC MATERIALS ........... 69,263
--------------
BUSINESS SERVICES (25.5%)
ENVIRONMENTAL CONTROL (0.3%)
Allied Waste Industries, Inc.* .. 10,900 254,106
--------------
PRINTING, PUBLISHING, BROADCASTING (11.5%)
American Radio Systems Corp.,
Class A* ........................ 19,000 1,012,937
CBS Corp. ........................ 20,800 612,300
Chancellor Media Corp.* .......... 4,900 365,662
Clear Channel Communications,
Inc.* ........................... 18,050 1,433,847
CMP Media, Inc., Class A* ........ 100 1,725
Cox Radio Inc., Class A* ......... 10,700 430,675
Emmis Broadcasting Corp.,
Class A* ........................ 4,300 196,187
Hearst-Argyle Television, Inc.* . 4,000 119,000
Heftel Broadcasting Corp.,
Class A* ........................ 2,300 107,525
Intermedia Communications of
Florida, Inc.* .................. 20,500 1,245,375
Jacor Communications, Inc.* ..... 22,000 1,168,750
Lear Corp.* ...................... 600 28,500
Learning Tree International,
Inc.* ........................... 31,500 909,562
Lin Television Corp.* ............ 18,900 1,030,050
Mail-Well, Inc.* ................. 2,600 105,300
Outdoor Systems, Inc.* ........... 22,100 848,088
SFX Broadcasting, Inc., Class A* . 6,200 497,550
Sinclair Broadcast Group, Inc.,
Class A* ........................ 4,500 209,813
TCA Cable TV, Inc. ............... 1,200 55,200
TV Azteca S.A. (ADS)* ............ 300 6,769
Univision Communications, Inc.,
Class A* ........................ 8,700 607,369
Viacom, Inc., Class B* ........... 18,100 750,019
--------------
11,742,203
--------------
PROFESSIONAL SERVICES (13.5%)
Accustaff, Inc.* ................. 30,300 696,900
Applied Graphics Technologies,
Inc. ............................ 1,200 63,900
BISYS Group, Inc.* ............... 7,500 249,375
Castle Dental Centers, Inc.* .... 100 775
Cendant Corp.* ................... 234,953 8,076,498
Compuware Corp.* ................. 95,400 3,052,800
Corestaff, Inc.* ................. 11,800 312,700
EduTrek International, Inc.,
Class A* ........................ 200 5,200
Galileo International, Inc. ..... 500 13,812
Lamar Advertising Co., Class A* .. 7,800 310,050
National Research Corp.* ......... 100 662
Orthodontic Centers of America,
Inc.* ........................... 18,100 300,913
Outsource International, Inc.* .. 700 8,487
Oxford Health Plans, Inc.* ...... 7,900 122,944
Pacificare Health Systems, Inc.,
Class B* ........................ 8,900 466,138
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
PRT Group, Inc.* ................. 1,000 $ 11,375
Service Corp. International ..... 1,400 51,713
SPR, Inc.* ....................... 100 1,700
--------------
13,745,942
--------------
TRUCKING, SHIPPING (0.2%)
C.H. Robinson Worldwide, Inc. ... 400 8,950
Jevic Transportation, Inc.* ..... 200 3,225
Newport News Shipbuilding, Inc. .. 8,800 223,850
--------------
236,025
--------------
TOTAL BUSINESS SERVICES ......... 25,978,276
--------------
CAPITAL GOODS (0.3%)
AEROSPACE (0.1%)
Thiokol Corp. .................... 900 73,125
--------------
BUILDING & CONSTRUCTION (0.2%)
Global Industries Ltd.* .......... 13,600 231,200
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.0%)
Industrial Distribution Group,
Inc.* ........................... 100 1,569
Lowe's Cos., Inc. ................ 900 42,919
--------------
44,488
--------------
ELECTRICAL EQUIPMENT (0.0%)
Power-One, Inc.* ................. 200 2,750
--------------
MACHINERY (0.0%)
SI Handling Systems, Inc. ........ 900 12,375
--------------
TOTAL CAPITAL GOODS ............. 363,938
--------------
CONSUMER CYCLICALS (12.9%)
APPAREL & TEXTILES (0.1%)
Linens 'N Things, Inc.* .......... 1,600 69,800
Tefron Ltd.* ..................... 200 4,600
Unifi, Inc. ...................... 400 16,275
--------------
90,675
--------------
AUTO RELATED (1.9%)
Avis Rent A Car, Inc.* ........... 4,400 140,525
Dollar Thrifty Automotive Group,
Inc.* ........................... 6,100 125,050
Republic Industries, Inc.* ...... 72,100 1,680,831
Stoneridge, Inc.* ................ 400 6,400
--------------
1,952,806
--------------
FOOD SERVICES, LODGING (1.7%)
Applebee's International, Inc. .. 6,900 124,631
BridgeStreet Accommodations,
Inc.* ........................... 200 2,031
Fine Host Corp.*# ................ 1,400 10,500
ITT Corp. (New)* ................. 6,500 538,688
Promus Hotel Corp.* .............. 21,400 898,800
Suburban Lodges of America, Inc.* 8,800 117,150
--------------
1,691,800
--------------
HOUSEHOLD FURNITURE, APPLIANCES (0.0%)
Gemstar International Group Ltd.* 600 14,625
Mac-Gray Corp.* .................. 300 4,687
--------------
19,312
--------------
LEISURE RELATED (0.3%)
Harrah's Entertainment, Inc.* ... 6,800 128,350
N2K, Inc.* ....................... 200 2,925
Royal Caribbean Cruises Ltd. .... 3,100 165,269
--------------
296,544
--------------
17
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
RETAIL--GENERAL (8.9%)
A.C. Moore Arts & Crafts, Inc.* .. 200 $ 2,275
Consolidated Stores Corp.* ...... 14,000 615,125
CVS Corp. ........................ 19,000 1,217,187
Dollar General Corp. ............. 1,300 47,125
Fred Meyer, Inc.* ................ 48,400 1,760,550
Home Depot, Inc. ................. 16,200 953,775
Office Depot, Inc.* .............. 81,600 1,953,300
Pier 1 Imports, Inc. ............. 1,500 33,938
Rite Aid Corp. ................... 34,800 2,042,325
Staples, Inc.* ................... 15,900 441,225
U.S.A. Floral Products, Inc.* ... 300 4,725
Viking Office Products, Inc. .... 1,100 23,994
--------------
9,095,544
--------------
TOTAL CONSUMER CYCLICALS ........ 13,146,681
--------------
CONSUMER NON-CYCLICALS (6.2%)
CONTAINERS (0.0%)
Ivex Packaging Corp.* ............ 500 12,000
Silgan Holdings, Inc.* ........... 100 3,250
--------------
15,250
--------------
DRUGS (0.4%)
McKesson Corp. ................... 2,200 238,012
PathoGenesis Corp.* .............. 1,700 63,113
Zonagen, Inc. .................... 3,600 65,475
--------------
366,600
--------------
FOODS (0.2%)
American Italian Pasta Co.,
Class A* ........................ 400 10,000
Corn Products International,
Inc.* ........................... 900 26,831
McCormick & Co., Inc. (Non
Voting) ......................... 3,400 95,200
Tootsie Roll Industries, Inc. ... 800 50,000
--------------
182,031
--------------
HOSPITAL SUPPLIES & SERVICES (4.3%)
Arterial Vascular Engineering,
Inc.* ........................... 8,200 533,000
Boron, LePore & Associates, Inc.* 200 5,500
Columbia HCA Healthcare Corp. .... 6,700 198,487
Cyberonics, Inc.* ................ 19,600 298,900
Foundation Health Systems, Class
A* .............................. 50 1,119
Guidant Corp. .................... 25,500 1,587,375
Health Management Associates,
Inc., Class A* .................. 600 15,150
Healthsouth Corp.* ............... 31,400 871,350
Integrated Health Services, Inc. 9,700 302,519
Mariner Health Group, Inc.* ..... 1,300 21,125
Medtronic, Inc. .................. 2,700 141,244
Mentor Corp. ..................... 1,600 58,400
Priority Healthcare Corp.,
Class B* ........................ 200 3,025
Renal Treatment Centers, Inc.* .. 7,800 281,775
Safeskin Corp.* .................. 1,100 62,425
St. Jude Medical, Inc.* .......... 300 9,150
--------------
4,390,544
--------------
RETAIL--FOOD (1.0%)
Albertson's, Inc. ................ 1,000 47,375
General Nutrition Cos., Inc.* ... 14,100 479,400
Kroger Co.* ...................... 3,600 132,975
Safeway, Inc.* ................... 1,300 82,225
Suiza Foods Corp.* ............... 4,100 244,206
Whole Foods Market, Inc.* ........ 1,200 61,350
--------------
1,047,531
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
SOAPS & TOILETRIES (0.3%)
Benckiser N.V., Class B* ......... 6,500 $ 268,957
Carson, Inc., Class A* ........... 1,000 6,687
-------------
275,644
-------------
TOTAL CONSUMER NON-CYCLICALS .... 6,277,600
-------------
CREDIT SENSITIVE (10.7%)
BANKS (1.1%)
Charter One Financial, Inc. ..... 5,210 328,881
Compass BancShares, Inc. ......... 4,400 192,500
First Security Corp. ............. 1,300 54,438
First Virginia Banks, Inc. ...... 700 36,181
Firstar Corp. .................... 1,100 46,681
Peoples Heritage Financial Group,
Inc. ............................ 4,300 197,800
Provident Financial Group, Inc. . 800 38,800
Summit Bancorp ................... 900 47,925
U.S. Trust Corp. ................. 1,700 106,463
Union Planters Corp. ............. 700 47,556
-------------
1,097,225
-------------
FINANCIAL SERVICES (3.9%)
A.G. Edwards, Inc. ............... 4,650 184,837
Associates First Capital Corp.,
Class A ......................... 5,100 362,738
CIT Group, Inc., Class A* ........ 2,200 70,950
Conseco, Inc. .................... 4,400 199,925
Consolidation Capital Corp.* .... 20,000 406,250
First Data Corp. ................. 23,200 678,600
Franklin Resources, Inc. ......... 13,500 1,173,656
Interra Financial, Inc. .......... 500 34,500
Lehman Brothers Holdings, Inc. .. 3,300 168,300
LINC Capital, Inc.* .............. 300 5,888
Morgan Stanley Dean Witter
Discover & Co. .................. 5,200 307,450
T. Rowe Price Associates, Inc. .. 5,700 358,387
-------------
3,951,481
-------------
INSURANCE (3.3%)
Ace Ltd. ......................... 800 77,200
Hartford Life, Inc., Class A .... 200 9,062
PAULA Financial* ................. 100 2,300
United Healthcare Corp. .......... 65,400 3,249,563
-------------
3,338,125
-------------
REAL ESTATE (0.0%)
Franchise Mortgage Acceptance
Co.* ............................ 1,100 20,213
Starwood Lodging Trust ........... 900 52,087
-------------
72,300
-------------
UTILITY--TELEPHONE (2.4%)
Cincinnati Bell, Inc. ............ 11,000 341,000
MCI Communications Corp. ......... 49,600 2,123,500
-------------
2,464,500
-------------
TOTAL CREDIT SENSITIVE .......... 10,923,631
-------------
DIVERSIFIED (5.2%)
MISCELLANEOUS (5.2%)
Tyco International Ltd. .......... 116,637 5,255,947
-------------
ENERGY (1.4%)
OIL--INTERNATIONAL (0.2%)
Diamond Offshore Drilling, Inc. . 4,500 216,562
-------------
OIL--SUPPLIES & CONSTRUCTION (0.6%)
Cooper Cameron Corp. ............. 4,200 256,200
Dril-Quip, Inc. .................. 400 14,050
Input/Output, Inc.* .............. 1,500 44,531
18
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
Noble Drilling Corp. ............. 6,300 $ 192,938
Veritas DGC, Inc. ................ 700 27,650
Weatherford Enterra, Inc. ........ 2,300 100,625
--------------
635,994
--------------
RAILROADS (0.6%)
Kansas City Southern Industries,
Inc.............................. 17,600 558,800
--------------
TOTAL ENERGY .................... 1,411,356
--------------
TECHNOLOGY (30.3%)
ELECTRONICS (16.3%)
Adobe Systems, Inc. .............. 100 4,125
Affiliated Computer Services,
Inc., Class A* .................. 11,800 310,488
Altera Corp.* .................... 10,600 351,125
Aspen Technologies, Inc. ......... 600 20,550
Autodesk, Inc. ................... 3,850 142,450
BMC Software, Inc.* .............. 48,800 3,202,500
Cadence Design Systems, Inc.* ... 114,490 2,805,005
Computer Associates
International, Inc. ............. 91,900 4,859,212
Dassault Systems S.A. (ADR) ..... 700 21,612
International Manufacturing
Services, Inc., Class A* ........ 300 2,175
J.D. Edwards & Co.* .............. 300 8,850
Micro Warehouse, Inc.*............ 23,500 327,531
Microsoft Corp.*.................. 22,400 2,895,200
SAP Aktiengesellschaft+ .......... 300 31,800
Scopus Technology, Inc.*.......... 7,800 93,600
Security Dynamics Technologies,
Inc.* ........................... 400 14,300
Sun Microsystems, Inc.*........... 12,600 502,425
Synopsys, Inc.*................... 7,900 282,425
Technology Solutions Co.*......... 21,400 564,425
Transaction Systems Architechs,
Inc., Class A* .................. 300 11,400
Xilinx, Inc.*..................... 3,500 122,719
--------------
16,573,917
--------------
OFFICE EQUIPMENT (9.5%)
Cisco Systems, Inc.* ............. 83,550 4,657,912
Compaq Computer Corp. ............ 4,600 259,613
Corporate Express, Inc.* ......... 43,400 558,775
DST Systems, Inc.* ............... 3,500 149,406
Danka Business Systems plc (ADR) 37,100 591,281
Oracle Corp.*..................... 156,812 3,498,868
--------------
9,715,855
--------------
OFFICE EQUIPMENT SERVICES (1.0%)
Cognicase, Inc.* ................. 100 1,213
U.S. Office Products Co.* ........ 49,950 980,269
--------------
981,482
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ----------- --------------
<S> <C> <C>
TELECOMMUNICATIONS (3.5%)
American Communications Services,
Inc.* ........................... 3,300 $ 42,281
Aspect Telecommunications Corp.* 1,000 20,875
Brooks Fiber Properties, Inc.* ... 1,800 99,000
Century Telephone Enterprises,
Inc. ............................ 9,200 458,275
China Telecom (Hong Kong) Ltd.
(ADR)*........................... 600 20,138
Concord Communications, Inc.* .... 100 2,075
Excel Switching Corp.* ........... 200 3,575
Inter-Tel, Inc. .................. 5,100 98,813
ITC DeltaCom, Inc.* .............. 300 4,950
LCI International, Inc.* ......... 17,000 522,750
Loral Space & Communications* .... 17,400 373,013
Lucent Technologies, Inc. ........ 2,700 215,663
Microcell Telecommunications,
Inc., Class B (Non Voting)* .... 900 6,075
Network Solutions, Inc., Class
A*............................... 100 1,312
NEXTLINK Communications, Inc.,
Class A* ........................ 2,600 55,413
NICE-Systems Ltd. (ADR) .......... 200 8,400
Qwest Communications
International, Inc.* ............ 100 5,950
Tel-Save Holdings, Inc.* ......... 1,000 19,875
Teleport Communications Group,
Inc., Class A* .................. 1,700 93,287
TeleSpectrum Worldwide, Inc.* .... 2,300 8,337
Teligent, Inc., Class A* ......... 300 7,387
Worldcom, Inc.* .................. 50,200 1,518,550
--------------
3,585,994
--------------
TOTAL TECHNOLOGY ................ 30,857,248
--------------
TOTAL COMMON STOCKS (92.6%)
(Cost $94,430,684) .............. 94,283,940
--------------
PREFERRED STOCKS:
TECHNOLOGY (2.0%)
ELECTRONICS (2.0%)
SAP AG (Non Voting)
(Cost $1,694,828) ............... 6,410 2,081,615
--------------
Principal
Amount
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (7.8%)
Federal Home Loan Bank (Discount
Note), 1/2/98 (Amortized Cost
$7,898,958) ..................... $7,900,000 7,898,958
TOTAL INVESTMENTS (102.4%)
(Cost/Amortized
Cost $104,024,470) .............. 104,264,513
OTHER ASSETS
LESS LIABILITIES (-2.4%) ........ (2,447,270)
--------------
NET ASSETS (100%) ................ $101,817,243
==============
</TABLE>
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1997 these securities amounted to $31,800 or
0.03% of net assets.
# Securities (totaling $10,500 or 0.01% of net assets) valued at fair
value.
Glossary:
ADR--American Depositary Receipt
ADS--American Depositary Share
19
<PAGE>
EQ ADVISORS TRUST
MFS EMERGING GROWTH COMPANIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$
AMOUNT ORIGINATION CURRENT UNREALIZED
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- --------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
German Mark, expiring 1/6/98 ......... 177 $98,784 $98,232 $(552)
Netherlands Guilder, expiring 1/6/98 25 12,231 12,158 (73)
--------------
$(625)
==============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $144,741,805
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 50,090,386
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 6,292,508
Aggregate gross unrealized depreciation (6,261,782)
-------------
Net unrealized appreciation.............. $ 30,726
=============
Federal income tax cost of investments . $104,233,787
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $23,803,563, which was secured by collateral valued at $24,156,300.
See Notes to Financial Statements
20
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (4.9%)
CHEMICALS (1.8%)
Air Products & Chemicals, Inc. .. 10,400 $ 855,400
E.I. Du Pont de Nemours & Co. .... 11,100 666,694
Praxair, Inc. .................... 13,400 603,000
--------------
2,125,094
--------------
CHEMICALS--SPECIALTY (1.0%)
Cytec Industries, Inc.*........... 23,900 1,121,806
--------------
PAPER (2.1%) .....................
Kimberly Clark Corp. ............. 36,900 1,819,632
Stone Container Corp.* ........... 63,500 662,781
--------------
2,482,413
--------------
TOTAL BASIC MATERIALS ........... 5,729,313
--------------
BUSINESS SERVICES (6.6%)
ENVIRONMENTAL CONTROL (1.1%)
Browning-Ferris Industries, Inc. 34,500 1,276,500
--------------
PRINTING, PUBLISHING, BROADCASTING (1.1%)
Clear Channel Communications,
Inc.* ........................... 8,800 699,050
Intermedia Communications of
Florida, Inc.* .................. 9,000 546,750
--------------
1,245,800
--------------
PROFESSIONAL SERVICES (3.7%)
Accustaff, Inc.*.................. 13,900 319,700
Cendant Corp.* ................... 76,711 2,636,935
Compuware Corp.* ................. 41,900 1,340,800
--------------
4,297,435
--------------
TRUCKING, SHIPPING (0.7%)
Newport News Shipbuilding, Inc. .. 34,300 872,506
--------------
TOTAL BUSINESS SERVICES ......... 7,692,241
--------------
CAPITAL GOODS (4.6%)
AEROSPACE (2.9%)
Lockheed Martin Corp. ............ 10,100 994,850
United Technologies Corp. ........ 32,100 2,337,281
--------------
3,332,131
--------------
ELECTRICAL EQUIPMENT (1.2%)
Cooper Industries, Inc. .......... 19,100 935,900
Teradyne, Inc.* .................. 15,100 483,200
--------------
1,419,100
--------------
MACHINERY (0.5%)
American Standard Cos., Inc.* .... 16,800 643,650
--------------
TOTAL CAPITAL GOODS ............. 5,394,881
--------------
CONSUMER CYCLICALS (7.5%)
APPAREL & TEXTILES (0.4%)
Gymboree Corp.* .................. 9,700 265,538
Reebok International Ltd.* ...... 5,000 144,062
--------------
409,600
--------------
AUTO RELATED (0.2%)
Kwik-Fit Holdings plc............. 39,500 229,134
--------------
FOOD SERVICES, LODGING (1.0%)
Hilton Hotels Corp. .............. 13,900 413,525
Host Marriott Corp.* ............. 30,900 606,413
Jarvis Hotels plc ................ 80,500 198,429
--------------
1,218,367
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------ ---------- --------------
<S> <C> <C>
HOUSEHOLD FURNITURE, APPLIANCES (0.1%)
Sony Corp. ....................... 1,500 $ 133,359
--------------
PHOTO & OPTICAL (0.6%)
Canon, Inc. ...................... 32,000 745,583
--------------
RETAIL--GENERAL (5.2%)
CVS Corp. ........................ 20,600 1,319,687
Fred Meyer, Inc.* ................ 18,100 658,387
Home Depot, Inc. ................. 27,700 1,630,838
Office Depot, Inc.* .............. 33,000 789,938
Rite Aid Corp. ................... 27,700 1,625,644
--------------
6,024,494
--------------
TOTAL CONSUMER CYCLICALS ........ 8,760,537
--------------
CONSUMER NON-CYCLICALS (20.6%) ..
BEVERAGES (2.5%)
Brahma (ADR) ..................... 50,500 716,469
Coca Cola Co. .................... 33,300 2,218,612
--------------
2,935,081
--------------
DRUGS (4.2%)
Bristol-Myers Squibb Co. ......... 34,000 3,217,250
Cardinal Health, Inc. ............ 13,800 1,036,725
Novartis AG (Registered).......... 300 486,820
Sankyo Co. ....................... 9,000 203,487
--------------
4,944,282
--------------
FOODS (0.8%)
Earthgrains Co. .................. 3,500 164,500
McCormick & Co., Inc.
(Non Voting)..................... 27,400 767,200
--------------
931,700
--------------
HOSPITAL SUPPLIES & SERVICES (2.8%)
Boston Scientific Corp.* ......... 21,100 967,963
Healthsouth Corp.* ............... 46,459 1,289,243
Tenet Healthcare Corp.* .......... 30,000 993,750
Uromed Corp.* .................... 2,500 8,828
--------------
3,259,784
--------------
RETAIL--FOOD (0.6%)
Safeway, Inc.* ................... 10,800 683,100
--------------
SOAPS & TOILETRIES (7.5%)
Clorox Co. ....................... 11,200 885,500
Colgate Palmolive Co. ............ 37,700 2,770,950
Dial Corp. ....................... 10,700 222,694
Gillette Co. ..................... 22,700 2,279,931
Procter & Gamble Co. ............. 25,400 2,027,237
Revlon, Inc., Class A* ........... 16,800 593,250
--------------
8,779,562
--------------
TOBACCO (2.2%)
Philip Morris Cos., Inc. ......... 55,800 2,528,438
--------------
TOTAL CONSUMER NON-CYCLICALS .... 24,061,947
--------------
CREDIT SENSITIVE (25.0%)
BANKS (6.0%)
BankBoston Corp. ................. 8,900 836,044
Chase Manhattan Corp. ............ 11,300 1,237,350
Comerica, Inc. ................... 13,600 1,227,400
Fleet Financial Group, Inc. ..... 16,600 1,243,962
PNC Bank Corp. ................... 15,400 878,763
Union Planters Corp. ............. 8,500 577,469
Wells Fargo & Co. ................ 2,900 984,369
--------------
6,985,357
--------------
21
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ --------------
FINANCIAL SERVICES (7.1%)
Advanta Corp., Class B ........... 4,200 $ 106,575
American Express Co. ............. 6,200 553,350
Associates First Capital Corp.,
Class A ......................... 6,800 483,650
CIT Group, Inc., Class A* ........ 2,900 93,525
Conseco, Inc. .................... 40,100 1,822,044
CoreStates Financial Corp. ...... 12,400 992,775
Fannie Mae ....................... 22,800 1,301,025
First Data Corp. ................. 37,700 1,102,725
Franklin Resources, Inc. ......... 5,500 478,156
Merrill Lynch & Co. .............. 10,600 773,137
Morgan Stanley Dean Witter
Discover & Co. .................. 10,500 620,813
--------------
8,327,775
--------------
INSURANCE (9.6%)
Allstate Corp. ................... 12,250 1,113,219
Chubb Corp. ...................... 12,400 937,750
CIGNA Corp. ...................... 6,700 1,159,519
FPIC Insurance Group, Inc.* ..... 1,600 46,600
Hartford Financial Services
Group, Inc. ..................... 15,500 1,450,219
Lincoln National Corp. ........... 11,300 882,812
Penncorp Financial Group, Inc. .. 10,800 385,425
Reliastar Financial Corp. ........ 18,462 760,404
Skandia Forsakrings AB ........... 20,100 948,053
Travelers Group, Inc. ............ 20,200 1,088,275
United Healthcare Corp. .......... 49,600 2,464,500
--------------
11,236,776
--------------
REAL ESTATE (0.0%)
Wharf Holdings Ltd. .............. 6,000 13,162
--------------
UTILITY--ELECTRIC (0.5%)
CalEnergy Co., Inc.* ............. 18,400 529,000
--------------
UTILITY--TELEPHONE (1.8%)
MCI Communications Corp. ......... 17,800 762,063
Sprint Corp. ..................... 23,100 1,354,238
--------------
2,116,301
--------------
TOTAL CREDIT SENSITIVE .......... 29,208,371
--------------
DIVERSIFIED (3.1%)
MISCELLANEOUS (3.1%)
Tyco International Ltd. .......... 79,487 3,581,874
--------------
ENERGY (5.1%)
OIL--DOMESTIC (1.4%)
Chevron Corp. .................... 6,300 485,100
USX-Marathon Group, Inc. ......... 34,100 1,150,875
--------------
1,635,975
--------------
OIL--INTERNATIONAL (1.5%)
British Petroleum Co. plc (ADR) .. 21,451 1,709,376
--------------
OIL--SUPPLIES & CONSTRUCTION (0.8%)
Baker Hughes, Inc. ............... 21,600 942,300
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ----------- --------------
<S> <C> <C>
RAILROADS (1.4%)
Burlington Northern Santa Fe
Corp. ........................... 11,600 $ 1,078,075
Wisconsin Central Transport
Corp.* .......................... 23,800 556,325
--------------
1,634,400
--------------
TOTAL ENERGY .................... 5,922,051
--------------
TECHNOLOGY (18.9%)
ELECTRONICS (12.2%)
Adobe Systems, Inc. .............. 11,300 466,125
Analog Devices, Inc.* ............ 17,100 473,456
BMC Software, Inc.* .............. 20,700 1,358,437
Cadence Design Systems, Inc.* ... 48,800 1,195,600
Computer Associates
International, Inc. ............. 29,750 1,573,031
Electronic Arts, Inc.* ........... 29,900 1,130,594
HBO & Co. ........................ 33,000 1,584,000
Intel Corp. ...................... 29,300 2,058,325
Microsoft Corp.* ................. 23,300 3,011,525
Sun Microsystems, Inc.* .......... 17,300 689,838
Sybase, Inc.* .................... 20,100 267,581
Synopsys, Inc.* .................. 13,300 475,475
--------------
14,283,987
--------------
OFFICE EQUIPMENT (4.1%)
Cisco Systems, Inc.* ............. 21,900 1,220,925
Compaq Computer Corp. ............ 34,000 1,918,875
Oracle Corp.* .................... 73,900 1,648,894
--------------
4,788,694
--------------
TELECOMMUNICATIONS (2.6%)
Alcatel Alsthom (ADR) ............ 48,500 1,227,656
Aspect Telecommunications Corp.* 29,900 624,162
Brooks Fiber Properties, Inc.* .. 6,400 352,000
Worldcom, Inc.* .................. 25,400 768,350
--------------
2,972,168
--------------
TOTAL TECHNOLOGY ................ 22,044,849
--------------
TOTAL COMMON STOCKS (96.3%)
(Cost $110,820,311) ............ 112,396,064
--------------
Principal
Amount
------------
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT AGENCIES (5.6%)
Federal Home Loan Bank
(Discount Note), 1/2/98
(Amortized Cost $6,599,129) .... $6,600,000 6,599,129
--------------
TOTAL INVESTMENTS (101.9%)
(Cost/Amortized Cost
$117,419,440) ................... 118,995,193
OTHER ASSETS
LESS LIABILITIES (-1.9%) ........ (2,240,729)
--------------
NET ASSETS (100%) ................ $116,754,464
==============
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
22
<PAGE>
EQ ADVISORS TRUST
MFS RESEARCH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$
AMOUNT ORIGINATION CURRENT UNREALIZED
(000'S) DATE VALUE APPRECIATION
---------- ------------- ---------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, expiring 1/6/98-1/7/98 20,388 $157,114 $156,262 $852
==============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $135,333,845
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 24,620,237
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 5,954,527
Aggregate gross unrealized depreciation (4,666,244)
-------------
Net unrealized appreciation.............. $ 1,288,283
=============
Federal income tax cost of investments . $117,706,910
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $20,906,732, which was secured by collateral valued at $21,263,500.
See Notes to Financial Statements.
23
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- --------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (5.3%)
CHEMICALS (2.4%)
Bayer AG (ADR) ................... 2,348 $ 87,754
Dow Chemical Co. ................. 1,400 142,100
E.I. Du Pont de Nemours & Co. .... 4,104 246,497
Eastman Chemical Co. ............. 2,253 134,194
--------------
610,545
--------------
METALS & MINING (0.5%)
Phelps Dodge Corp. ............... 2,200 136,950
--------------
PAPER (2.3%)
Chesapeake Corp................... 1,172 40,288
Kimberly Clark Corp. ............. 4,111 202,724
Temple-Inland, Inc. .............. 2,200 115,087
Weyerhaeuser Co. ................. 5,085 249,483
--------------
607,582
--------------
STEEL (0.1%)
Carpenter Technology Corp......... 293 14,082
--------------
TOTAL BASIC MATERIALS ........... 1,369,159
--------------
BUSINESS SERVICES (2.0%)
ENVIRONMENTAL CONTROL (0.5%)
Browning-Ferris Industries, Inc. 3,464 128,168
--------------
PRINTING, PUBLISHING,
BROADCASTING (0.9%)
Comcast Corp., Class A Special .. 4,220 133,194
McGraw Hill Cos., Inc. ........... 1,594 117,956
--------------
251,150
--------------
PROFESSIONAL SERVICES (0.6%)
Pitney Bowes, Inc................. 1,667 149,926
--------------
TOTAL BUSINESS SERVICES ......... 529,244
--------------
CAPITAL GOODS (5.5%)
AEROSPACE (1.3%)
Boeing Co. ....................... 3,813 186,599
Lockheed Martin Corp. ............ 1,076 105,986
Northrop Grumman Corp. ........... 491 56,465
--------------
349,050
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.8%)
Lowe's Cos., Inc. ................ 3,227 153,888
PPG Industries, Inc. ............. 842 48,099
--------------
201,987
--------------
ELECTRICAL EQUIPMENT (2.1%)
Cooper Industries, Inc. .......... 2,648 129,752
Emerson Electric Co. ............. 3,552 200,466
General Electric Co. ............. 1,369 100,450
Siebe plc ........................ 5,500 108,006
--------------
538,674
--------------
MACHINERY (1.3%)
Caterpillar, Inc.................. 3,520 170,940
Deere & Co. ...................... 2,619 152,720
--------------
323,660
--------------
TOTAL CAPITAL GOODS ............. 1,413,371
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
CONSUMER CYCLICALS (4.4%)
AIRLINES (0.8%)
Delta Airlines, Inc. ............. 1,662 $ 197,778
--------------
AUTO RELATED (1.2%)
Michelin, Class B (Registered) ... 2,734 137,643
TRW Inc. ......................... 3,032 161,833
--------------
299,476
--------------
AUTOS & TRUCKS (1.1%)
Chrysler Corp. ................... 4,413 155,283
Ford Motor Co. ................... 2,901 141,242
--------------
296,525
--------------
PHOTO & OPTICAL (0.6%)
Eastman Kodak Co. ................ 2,367 143,943
--------------
RETAIL--GENERAL (0.7%)
May Department Stores Co.......... 500 26,344
Toys-R-Us, Inc.* ................. 5,687 178,785
--------------
205,129
--------------
TOTAL CONSUMER CYCLICALS ........ 1,142,851
--------------
CONSUMER NON-CYCLICALS (9.7%)
BEVERAGES (1.7%)
Anheuser-Busch Cos., Inc. ........ 3,427 150,788
PepsiCo, Inc. .................... 3,946 143,782
Whitman Corp. .................... 5,290 137,871
--------------
432,441
--------------
DRUGS (4.0%)
American Home Products Corp. ..... 3,427 262,166
Bristol-Myers Squibb Co. ......... 2,248 212,716
Johnson & Johnson ................ 2,217 146,045
Merck & Co., Inc. ................ 1,955 207,719
Pharmacia & Upjohn, Inc. ......... 5,868 214,916
--------------
1,043,562
--------------
FOODS (1.4%)
Dole Food Co...................... 730 33,397
General Mills, Inc. .............. 2,544 182,214
Quaker Oats Co. .................. 500 26,375
Sara Lee Corp. ................... 1,853 104,347
--------------
346,333
--------------
HOSPITAL SUPPLIES & SERVICES (0.9%)
Baxter International, Inc......... 4,694 236,754
--------------
SOAPS & TOILETRIES (0.6%)
Colgate Palmolive Co. ............ 2,200 161,700
--------------
TOBACCO (1.1%)
Philip Morris Cos., Inc. ......... 6,061 274,639
--------------
TOTAL CONSUMER NON-CYCLICALS .... 2,495,429
--------------
CREDIT SENSITIVE (22.0%)
BANKS (8.7%)
Banc One Corp. ................... 4,500 244,406
BankBoston Corp. ................. 1,174 110,283
Bankers Trust New York Corp. .... 1,076 120,983
Crestar Financial Corp. .......... 920 52,440
First Chicago NBD Corp. .......... 2,583 215,681
First of America Bank Corp. ..... 881 67,947
First Union Corp. ................ 3,325 170,406
24
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- --------------
Firstar Corp. .................... 881 $ 37,387
Fleet Financial Group, Inc. ..... 2,885 216,195
J.P. Morgan & Co. ................ 1,350 152,381
KeyCorp .......................... 1,037 73,433
Mercantile Bancorp, Inc. ......... 1,200 73,800
Nationsbank Corp. ................ 3,227 196,242
Norwest Corp. .................... 3,227 124,643
PNC Bank Corp. ................... 3,891 222,030
Synovus Financial Corp. .......... 2,344 76,766
Washington Mutual, Inc. .......... 1,500 95,719
--------------
2,250,742
--------------
FINANCIAL SERVICES (0.6%)
Beneficial Corp................... 784 65,170
Fannie Mae ....................... 1,760 100,430
--------------
165,600
--------------
INSURANCE (3.0%)
American General Corp............. 3,625 195,977
Aon Corp. ........................ 2,592 151,956
CIGNA Corp. ...................... 800 138,450
Hartford Financial Services
Group, Inc. ..................... 1,757 164,389
United Healthcare Corp. .......... 2,744 136,342
--------------
787,114
--------------
REAL ESTATE (0.8%)
Duke Realty Investment, Inc. ..... 2,151 52,162
Equity Residential Property
Trust............................ 1,867 94,400
Starwood Lodging Trust ........... 900 52,087
--------------
198,649
--------------
UTILITY--ELECTRIC (2.5%)
Baltimore Gas & Electric Co. ..... 1,174 39,989
Cinergy Corp. .................... 1,174 44,979
Dominion Resources, Inc. ......... 2,144 91,254
Duke Energy Corp. ................ 3,268 180,966
OGE Energy Corp. ................. 1,667 91,164
Potomac Electric Power Co. ...... 2,858 73,772
Southern Co. ..................... 4,622 119,594
--------------
641,718
--------------
UTILITY--GAS (1.0%)
Enron Corp. ...................... 3,400 141,312
Pacific Enterprises .............. 3,188 119,949
--------------
261,261
--------------
UTILITY--TELEPHONE (5.4%)
Ameritech Corp.................... 2,248 180,964
AT&T Corp. ....................... 2,353 144,121
Bell Atlantic Corp. .............. 2,191 199,381
Bellsouth Corp. .................. 3,518 198,108
Cincinnati Bell, Inc. ............ 2,700 83,700
GTE Corp. ........................ 2,700 141,075
SBC Communications, Inc. ......... 3,304 242,018
Sprint Corp. ..................... 3,315 194,342
--------------
1,383,709
--------------
TOTAL CREDIT SENSITIVE .......... 5,688,793
--------------
DIVERSIFIED (1.1%)
MISCELLANEOUS (1.1%)
Fortune Brands, Inc. ............. 3,520 130,460
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
Minnesota Mining & Manufacturing
Co. ............................. 1,958 $ 160,678
--------------
TOTAL DIVERSIFIED ............... 291,138
--------------
ENERGY (7.4%)
OIL--DOMESTIC (3.3%)
Amoco Corp. ...................... 2,755 234,519
Exxon Corp. ...................... 4,313 263,902
Mobil Corp. ...................... 3,483 251,429
Sonat, Inc. ...................... 2,400 109,800
--------------
859,650
--------------
OIL--INTERNATIONAL (2.3%)
British Petroleum Co. plc (ADR) .. 3,033 241,692
Elf Aquitaine S.A. (ADR) ......... 3,049 178,747
Total S.A. (ADR) ................. 3,129 173,660
--------------
594,099
--------------
OIL--SUPPLIES & CONSTRUCTION (0.2%)
Dresser Industries, Inc. ......... 1,188 49,822
--------------
RAILROADS (1.6%)
Burlington Northern Santa Fe
Corp............................. 1,662 154,462
CSX Corp. ........................ 2,246 121,284
Union Pacific Corp. .............. 2,151 134,303
--------------
410,049
--------------
TOTAL ENERGY .................... 1,913,620
--------------
TECHNOLOGY (3.7%)
ELECTRONICS (1.6%)
Computer Associates
International, Inc. ............. 2,102 111,143
Intel Corp. ...................... 2,153 151,248
Texas Instruments, Inc. .......... 3,685 165,825
--------------
428,216
--------------
OFFICE EQUIPMENT (2.1%)
Hewlett Packard Co. .............. 2,944 184,000
International Business Machines
Corp. ........................... 1,858 194,277
Xerox Corp. ...................... 2,060 152,054
--------------
530,331
--------------
TOTAL TECHNOLOGY ................ 958,547
--------------
TOTAL COMMON STOCKS (61.1%) (Cost
$15,020,127) .................... 15,802,152
--------------
PREFERRED STOCKS:
CREDIT SENSITIVE (0.2%)
FINANCIAL SERVICES (0.2%)
K-Mart Financing.................. 439 22,663
Webster Capital Corp.,
Series A*........................ 40 39,951
--------------
TOTAL PREFERRED STOCKS (0.2%)
(Cost $64,044)................... 62,614
--------------
CONVERTIBLE PREFERRED STOCKS:
BASIC MATERIALS (0.2%)
METALS & MINING (0.2%)
Freeport-McMoran Copper
& Gold, Inc. (Cost $62,112) ..... 2,348 50,922
--------------
</TABLE>
25
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------ ----------- -------------
<S> <C> <C>
LONG-TERM DEBT SECURITIES:
BASIC MATERIALS (0.2%)
CHEMICALS (0.2%)
Solutia, Inc. 6.72%, 10/15/37 $ 55,000 $ 55,758
-------------
BUSINESS SERVICES (0.4%)
PRINTING, PUBLISHING,
BROADCASTING (0.4%)
News America Holdings, Inc. ..
7.70%, 10/30/25 .............. 35,000 36,149
7.75%, 12/1/45 ............... 60,000 62,670
-------------
TOTAL BUSINESS SERVICES ..... 98,819
-------------
CAPITAL GOODS (0.3%)
BUILDING MATERIALS & FOREST
PRODUCTS (0.2%)
Noranda, Inc. 8.00%, 6/1/03 .. 40,000 42,432
-------------
ELECTRICAL EQUIPMENT (0.1%)
Raytheon Co. 6.45%, 8/15/02 .. 35,000 35,206
-------------
TOTAL CAPITAL GOODS .......... 77,638
-------------
CONSUMER CYCLICALS (0.7%)
AIRLINES (0.2%)
Continental Airlines, Inc.,
Class 4C 6.80%, 7/2/07 ....... 50,000 50,336
-------------
LEISURE RELATED (0.5%)
Time Warner, Inc.
8.375%, 7/15/33 .............. 110,000 126,287
-------------
TOTAL CONSUMER CYCLICALS .... 176,623
-------------
CONSUMER NON-CYCLICALS (0.2%)
TOBACCO (0.2%)
Philip Morris Cos., Inc.
7.125%, 10/1/04 .............. 10,000 10,347
7.75%, 1/15/27 ............... 50,000 54,430
-------------
TOTAL CONSUMER NON-CYCLICALS 64,777
-------------
CREDIT SENSITIVE (29.4%)
BANKS (1.3%)
Bancomext Trust 8.00%, 8/5/03 . 75,000 72,261
Long Island Savings Bank
7.00%, 6/13/02................ 60,000 61,487
Merita Bank Ltd. 6.50%,
1/15/06 ...................... 65,000 64,559
Nationsbank Corp. 6.50%,
8/15/03 ...................... 65,000 65,655
Peoples Bank of Bridgeport
(Conn.) 7.20%, 12/1/06........ 50,000 51,047
Societe Generale Paris 7.85%,
4/29/49 +[section] (e)........ 15,000 16,287
-------------
331,296
-------------
COLLATERALIZED MORTGAGE
OBLIGATIONS (0.8%)
Commercial Mortgage Acceptance
Corp.
Series 97-ML1, Class A2,
6.53%, 12/15/30.............. 20,000 20,175
Series 97-ML1, Class A3,
6.57%, 12/15/30.............. 50,000 50,422
<PAGE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ------------ ------------
<S> <C> <C>
Series 97-MLI, Class D,
7.0576%, 12/15/10 ........... $ 15,000 $ 15,019
Federal Home Loan Mortgage
Corp., Series 25, Class B,
6.50%, 12/25/08 .............. 20,000 19,992
First Union-Lehman Brothers
Series 97-C2, Class D,
7.12%, 11/18/12
(Pass Through)............... 30,000 29,883
Series 97-C2, Class A3,
6.65%, 6/18/08
(Pass Through)............... 30,000 30,272
General Motors Acceptance
Corp., Series 97-C2, Class
A1, 6.45%, 4/15/29............ 30,000 30,042
-------------
195,805
-------------
FINANCIAL SERVICES (1.0%)
Commercial Credit Corp.
7.75%, 3/1/05................. 25,000 26,740
Lehman Brothers Holdings, Inc.
6.625%, 11/15/00.............. 70,000 70,577
6.50%, 10/1/02................ 85,000 85,203
Pindo Deli Fin Mauritius
10.75%, 10/1/07 +[section] ... 7,000 5,985
The Money Store, Inc.
8.05%, 4/15/02................ 65,000 67,342
-------------
255,847
-------------
FOREIGN GOVERNMENT (3.9%)
Central Bank of the
Philippines, Series B, FL,
6.50%, 12/1/17................ 50,000 40,182
Government of France
6.75%, 10/25/03............... FRF 276,000 50,183
5.50%, 10/25/07............... 1,400,000 235,689
Government of New Zealand
8.00%, 4/15/04................ NZD 78,000 47,181
Government of Russia PO,
0.00%, 12/15/20 TBA .......... $ 15,000 9,300
Province of Quebec
7.50%, 7/15/02 TBA ........... 50,000 52,447
Republic of Argentina FL,
5.6875%, 4/1/01 .............. 95,000 93,100
Republic of Germany,
Series 97
6.50%, 7/4/27................. DEM 315,000 188,851
Republic of Peru FL, PDI
4.00%, 3/7/17................. $182,000 118,935
Republic of Poland FL, PDI
4.00%, 10/27/14 (e)........... 57,000 49,333
Republic of South Africa
13.00%, 8/31/10............... ZAR 567,000 110,989
-------------
996,190
-------------
GENERAL OBLIGATIONS (0.3%)
New Jersey Economic
Development Authority,
Series A 7.425%, 2/15/29 .... $ 65,000 72,184
-------------
INSURANCE (0.6%)
American General Finance Corp.
5.70%, 2/7/01................. 50,000 49,431
26
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ----------- -------------
<S> <C> <C>
American General Institutional
Capital Corp., Class B
8.125%, 3/15/46 +Section .... $ 15,000 $ 16,639
Southern Investments Capital
Trust 6.80%, 12/1/06.......... 50,000 50,494
Travelers Property & Casualty,
Inc. 6.75%, 4/15/01........... 50,000 50,875
-------------
167,439
-------------
REAL ESTATE (0.5%)
Avalon Properties, Inc.
6.875%, 12/15/07.............. 25,000 25,055
Chelsea GCA Realty Properties
7.25%, 10/21/07............... 50,000 50,537
Omega Healthcare Investors,
Inc. 6.95%, 8/1/07............ 50,000 49,832
-------------
125,424
-------------
U.S. GOVERNMENT (12.3%)
U.S. Treasury Bond 6.375%,
8/15/27....................... 585,000 616,992
U.S. Treasury Note
5.625%, 10/31/99.............. 260,000 259,756
5.625%, 11/30/99.............. 230,000 229,856
6.25%, 6/30/02................ 105,000 107,166
6.00%, 7/31/02................ 119,000 120,302
6.25%, 8/31/02 ............... 1,150,000 1,174,079
5.875%, 9/30/02............... 10,000 10,063
5.75%, 10/31/02............... 265,000 265,414
5.75%, 11/30/02............... 100,000 100,125
7.00%, 7/15/06................ 100,000 108,000
6.625%, 5/15/07............... 90,000 95,316
6.125%, 8/15/07............... 85,000 87,391
-------------
3,174,460
-------------
U.S. GOVERNMENT AGENCIES (7.0%)
Federal Home Loan Mortgage
Corp. 8.50%, 6/1/27 .......... 35,350 36,974
Federal National Mortgage
Corp.
7.00%, 10/1/12 ............... 44,551 45,303
7.00%, 11/1/12 ............... 64,350 65,437
9.00%, 8/1/26 ................ 355,877 378,564
Government National Mortgage
Association
7.125%, 4/20/23 ARM .......... 23,546 24,284
5.50%, 7/20/23 ARM ........... 24,603 25,262
7.125%, 8/20/23 ARM........... 46,941 48,198
7.375%, 5/20/24 ARM .......... 23,018 23,729
6.00%, 9/20/24 ARM ........... 45,902 47,103
7.00%, 9/15/25 ............... 74,251 74,970
7.00%, 12/15/25 .............. 68,300 68,961
7.50%, 12/15/26 .............. 144,326 148,113
7.00%, 7/15/27 ............... 54,852 55,367
8.50%, 7/15/27 ............... 53,752 56,524
5.50%, 10/10/27 ARM .......... 32,661 32,662
7.50%, 10/15/27 .............. 146,227 150,039
7.00%, 11/15/27 .............. 200,704 202,589
5.50%, 2/16/28 ARM, TBA ...... 295,000 295,460
5.50%, 3/15/28 ARM, TBA ...... 45,000 45,070
-------------
1,824,609
-------------
<PAGE>
<CAPTION>
PRINCIPAL VLAUE
AMOUNT (NOTE 1)
- -------------------------------- ------------- -------------
<S> <C> <C>
UTILITY--ELECTRIC (1.6%)
Arizona Public Service Co.
6.75%, 11/15/06 .............. $ 50,000 $ 50,139
Baltimore Gas & Electric Co.
6.90%, 2/1/05 ................ 50,000 51,500
CalEnergy Co., Inc. 7.63%,
10/15/07 ..................... 40,000 40,369
Illinova Corp. 7.125%, 2/1/04 70,000 71,554
Public Service Electric & Gas
Co. 8.875%, 6/1/03 ........... 50,000 55,551
Texas Utilities Co. 8.25%,
4/1/04 ....................... 50,000 54,588
Transamerica Energy 0.00%,
6/15/02 (d) +Section ......... 115,000 92,575
-------------
416,276
-------------
UTILITY--TELEPHONE (0.1%)
U.S. West Capital Funding,
Inc. 6.95%, 1/15/37 .......... 35,000 36,302
-------------
TOTAL CREDIT SENSITIVE ...... 7,595,832
-------------
ENERGY (0.7%)
COAL & GAS PIPELINES (0.2%)
Columbia Gas Systems, Inc.
6.61%, 11/28/02 .............. 65,000 65,889
-------------
OIL--DOMESTIC (0.1%)
Seagull Energy Corp. 7.50%,
9/15/27 ...................... 20,000 20,196
-------------
OIL--INTERNATIONAL (0.1%)
Saga Petroleum ASA 7.25%,
9/23/27 ...................... 15,000 15,301
-------------
RAILROADS (0.3%)
Norfolk Southern Corp. 7.80%,
5/15/27 ...................... 70,000 79,211
-------------
TOTAL ENERGY ................. 180,597
-------------
TECHNOLOGY (0.7%)
TELECOMMUNICATIONS (0.7%)
Cia Telecom Chile 7.625%,
7/15/06 ...................... 25,000 26,516
Colt Telecom Group plc 8.875%,
11/30/07 ..................... DEM 50,000 27,794
LCI International, Inc. 7.25%,
6/15/07 ...................... $ 60,000 62,200
Worldcom, Inc. 7.75%, 4/1/07 . 60,000 64,379
-------------
TOTAL TECHNOLOGY ............. 180,889
-------------
TOTAL LONG-TERM DEBT SECURITIES (32.6%)
(Cost $8,357,325) ............ 8,430,933
-------------
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (6.3%)
J.P. Morgan Securities, Inc.
6.25%, dated 12/31/97, due
1/2/98, to be repurchased at
$1,625,564, collateralized by
$1,216,000 of U.S. Treasury
Notes, 8.875% due 2/15/19,
valued at $1,661,216 @........ 1,625,000 1,625,000
-------------
U.S. GOVERNMENT AGENCIES (3.9%)
Federal Home Loan Mortgage
Corp. (Discount Note),
1/14/98 ...................... 1,000,000 997,917
-------------
</TABLE>
27
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
- ----------------------------- -------------
<S> <C>
TOTAL SHORT-TERM DEBT
SECURITIES (10.2%)
(Cost/Amortized Cost
$2,622,917) .............. $ 2,622,917
-------------
TOTAL INVESTMENTS (104.3%)
(Cost/Amortized Cost
$26,126,525) ............. 26,969,538
OTHER ASSETS
LESS LIABILITIES (-4.3%) (1,115,950)
-------------
NET ASSETS (100%) ......... $25,853,588
=============
</TABLE>
- ------------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may only be resold to qualified
institutional buyers. At December 31, 1997 these securities amounted
to $131,486 or 0.51% of net assets.
[section] Illiquid security: is not actively traded.
@ A portion of this security is pledged to cover delayed delivery
securities.
(d) Debt security initially issued in zero coupon form which converts to
coupon form at a specific rate and date.
(e) Coupon will increase periodically based upon a predetermined
schedule. Stated interest rate in effect at December 31, 1997.
Glossary:
ADR--American Depositary Receipt
ARM--Adjustable Rate Mortgage
FL--Floating Rate
PDI--Past Due Interest Bond
PO--Principal Only
TBA--Security is subject to delayed delivery
DEM--German Mark
FRF--French Franc
NZD--New Zealand Dollar
ZAR--South African Rand
28
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- --------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/8/98 .............. 6 $ 9,985 $ 9,929 $ (56)
German Mark, expiring 3/18/98 ............... 408 229,787 227,649 (2,138)
Indonesian Rupiah, expiring 2/23/98-6/23/98 172,217 48,647 30,231 (18,416)
Italian Lira, expiring 3/18/98 .............. 77,614 44,293 43,862 (431)
Japanese Yen, expiring 3/18/98 .............. 13,717 107,511 106,336 (1,175)
Mexican Peso, expiring 5/11/98-6/5/98 ...... 237 26,674 29,454 2,780
New Zealand Dollar, expiring 3/18/98 ....... 88 52,427 50,961 (1,466)
Philippine Peso, expiring 3/25/98 ........... 210 6,006 5,197 (809)
Polish Zlotey, expiring 6/5/98 .............. 58 15,854 15,261 (593)
Swiss Franc, expiring 3/18/98 ............... 36 25,151 24,524 (627)
Venezuelan Bolivar, expiring 1/7/98-6/19/98 6,473 12,054 12,835 781
FOREIGN CURRENCY SALE CONTRACTS
British Pound, expiring 6/5/98 .............. 1 1,571 1,631 (60)
French Franc, expiring 3/18/98 .............. 1,723 291,274 287,608 3,666
German Mark, expiring 3/18/98-6/5/98 ....... 777 440,238 433,648 6,590
Indonesian Rupiah, expiring 2/23/98 ........ 64,988 17,620 11,616 6,004
Italian Lira, expiring 3/18/98 .............. 79,000 45,080 44,646 434
Japanese Yen, expiring 3/18/98 .............. 16,839 132,100 130,541 1,559
Mexican Peso, expiring 6/5/98 ............... 174 19,734 21,563 (1,829)
New Zealand Dollar, expiring 3/18/98 ....... 174 105,289 100,480 4,809
Polish Zlotey, expiring 6/5/98 .............. 29 7,655 8,241 (586)
South African Rand, expiring 3/18/98 ....... 445 89,108 89,732 (624)
Swiss Franc, expiring 3/18/98 ............... 36 25,460 24,869 591
---------------
$ (1,596)
===============
</TABLE>
Transactions in options written for the period from May 1, 1997 to December
31, 1997 are summarized as follows: (Note 1)
<TABLE>
<CAPTION>
NUMBER OF PREMIUMS
CONTRACTS (A) RECEIVED
---------------- ------------
<S> <C> <C>
Options outstanding--May 1, 1997 .......... -- --
Options written ........................... JPY 36,000 $ 553
Options closed ............................ JPY (36,000) (553)
---------------- ------------
Options outstanding--December 31, 1997 ... -- --
================ ============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $25,854,863
U.S. Government securities ..................... 11,869,171
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 7,224,059
U.S. Government securities ..................... 7,245,074
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 1,093,483
Aggregate gross unrealized depreciation (261,488)
------------
Net unrealized appreciation.............. $ 831,995
============
Federal income tax cost of investments . $26,137,543
============
</TABLE>
<PAGE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $4,422,477, which was secured by collateral valued at $4,490,790, of which
$1,018,813 was in the form of U.S. Government securities.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $75 as brokerage commissions with EQ Financial Consultants,
Inc., an affiliated broker/dealer.
- ------------
(a) One contract relates to 100 units.
See Notes to Financial Statements.
29
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (5.5%)
CHEMICALS (2.4%)
Eastman Chemical Co. ............. 21,021 $ 1,252,063
E.I. Du Pont de Nemours & Co. .... 21,651 1,300,413
Witco Corp. ...................... 27,625 1,127,446
-------------
3,679,922
-------------
PAPER (3.1%)
Boise Cascade Corp. .............. 36,595 1,106,998
Kimberly Clark Corp. ............. 44,701 2,204,318
Temple-Inland, Inc. .............. 8,524 445,912
Willamette Industries, Inc. ..... 28,310 911,228
-------------
4,668,456
-------------
TOTAL BASIC MATERIALS ........... 8,348,378
-------------
BUSINESS SERVICES (3.6%)
ENVIRONMENTAL CONTROL (0.9%)
Browning-Ferris Industries, Inc. 36,940 1,366,780
-------------
PRINTING, PUBLISHING,
BROADCASTING (1.1%)
McGraw Hill Cos., Inc. ........... 15,628 1,156,472
Times Mirror Co., Class A ........ 8,600 528,900
-------------
1,685,372
-------------
PROFESSIONAL SERVICES (1.6%)
NCR Corp.* ....................... 30,513 848,643
Pitney Bowes, Inc. ............... 16,500 1,483,969
-------------
2,332,612
-------------
TOTAL BUSINESS SERVICES ......... 5,384,764
-------------
CAPITAL GOODS (8.6%)
AEROSPACE (2.4%)
Boeing Co. ....................... 33,920 1,659,960
General Motors Corp., Class H ... 19,269 711,749
Northrop Grumman Corp. ........... 10,290 1,183,350
-------------
3,555,059
-------------
BUILDING MATERIALS & FOREST
PRODUCTS (1.5%)
Lowe's Cos., Inc. ................ 29,857 1,423,806
Masco Corp. ...................... 16,875 858,515
-------------
2,282,321
-------------
ELECTRICAL EQUIPMENT (2.1%)
Cooper Industries, Inc. .......... 25,676 1,258,124
Emerson Electric Co. ............. 25,105 1,416,863
Raytheon Co., Class A ............ 11,368 560,593
-------------
3,235,580
-------------
MACHINERY (2.6%)
Caterpillar, Inc. ................ 23,900 1,160,644
Deere & Co. ...................... 16,980 990,146
Tenneco, Inc. .................... 42,653 1,684,794
-------------
3,835,584
-------------
TOTAL CAPITAL GOODS ............. 12,908,544
-------------
CONSUMER CYCLICALS (10.2%)
AIRLINES (0.9%)
Delta Airlines, Inc. ............. 11,048 1,314,712
-------------
AUTO RELATED (3.9%)
Dana Corp. ....................... 35,232 1,673,520
Eaton Corp. ...................... 11,792 1,052,436
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- -------------
<S> <C> <C>
Goodyear Tire & Rubber Co. ...... 30,228 $ 1,923,257
TRW Inc. ......................... 23,420 1,250,042
-------------
5,899,255
-------------
AUTOS & TRUCKS (0.5%)
Chrysler Corp. ................... 20,330 715,362
-------------
FOOD SERVICES, LODGING (0.7%)
ITT Corp. (New)* ................. 13,700 1,135,387
-------------
PHOTO & OPTICAL (2.2%)
Eastman Kodak Co. ................ 28,653 1,742,461
Polaroid Corp. ................... 31,612 1,539,109
-------------
3,281,570
-------------
RETAIL--GENERAL (2.0%)
J.C. Penny Co. ................... 1,000 60,313
K-Mart Corp.* .................... 108,900 1,259,156
Toys-R-Us, Inc.* ................. 52,355 1,645,910
-------------
2,965,379
-------------
TOTAL CONSUMER CYCLICALS ........ 15,311,665
-------------
CONSUMER NON-CYCLICALS (20.1%)
BEVERAGES (1.7%)
PepsiCo, Inc. .................... 38,335 1,396,832
Whitman Corp. .................... 42,357 1,103,929
-------------
CONTAINERS (1.4%) 2,500,761
-------------
Owens Illinois, Inc.* ............ 55,845 2,118,620
-------------
DRUGS (8.1%)
American Home Products Corp. .... 26,414 2,020,671
Bristol-Myers Squibb Co. ......... 23,165 2,191,987
Glaxo Wellcome plc (ADR) ......... 15,685 750,919
Johnson & Johnson ................ 26,240 1,728,560
Merck & Co., Inc. ................ 24,050 2,555,313
Pharmacia & Upjohn, Inc. ......... 79,974 2,929,048
-------------
12,176,498
-------------
FOODS (4.9%)
General Mills, Inc. .............. 27,510 1,970,404
H.J. Heinz Co. ................... 28,780 1,462,384
Quaker Oats Co. .................. 30,280 1,597,270
Ralston Purina Group ............. 9,970 926,587
Sara Lee Corp. ................... 23,686 1,333,817
-------------
7,290,462
-------------
HOSPITAL SUPPLIES & SERVICES (1.3%)
Baxter International, Inc. ...... 39,204 1,977,352
-------------
SOAPS & TOILETRIES (0.7%)
Clorox Co. ....................... 11,210 886,291
Colgate Palmolive Co. ............ 2,400 176,400
-------------
1,062,691
-------------
TOBACCO (2.0%)
Philip Morris Cos., Inc. ......... 43,050 1,950,703
RJR Nabisco Holdings Corp. ...... 29,744 1,115,400
-------------
3,066,103
-------------
TOTAL CONSUMER NON-CYCLICALS .... 30,192,487
-------------
CREDIT SENSITIVE (21.3%)
BANKS (10.8%)
Banc One Corp. ................... 22,866 1,241,910
BankBoston Corp. ................. 8,300 779,681
Bankers Trust New York Corp. .... 12,954 1,456,515
Crestar Financial Corp. .......... 800 45,600
30
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
</TABLE>
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- -------------
<S> <C> <C>
First Chicago NBD Corp. .......... 14,865 $ 1,241,228
First Tennessee National Corp. .. 6,990 466,582
J.P. Morgan & Co. ................ 12,858 1,451,346
Mercantile Bancorp, Inc. ......... 12,333 758,480
National City Corp. .............. 10,935 718,976
PNC Bank Corp. ................... 56,742 3,237,840
Regions Financial Corp. .......... 15,002 632,897
Summit Bancorp ................... 14,010 746,033
SunTrust Banks, Inc. ............. 8,540 609,543
Union Planters Corp. ............. 13,324 905,199
Washington Mutual, Inc. .......... 10,540 672,584
Wells Fargo & Co. ................ 3,700 1,255,919
-------------
16,220,333
-------------
FINANCIAL SERVICES (0.6%)
Beneficial Corp. ................. 10,104 839,895
-------------
INSURANCE (2.9%)
American General Corp. ........... 29,619 1,601,277
Aon Corp. ........................ 26,081 1,528,999
CIGNA Corp. ...................... 7,526 1,302,468
-------------
4,432,744
-------------
UTILITY--GAS (0.3%)
Enron Corp. ...................... 12,300 511,219
-------------
UTILITY--TELEPHONE (6.7%)
AT&T Corp. ....................... 22,793 1,396,071
Bell Atlantic Corp. .............. 17,950 1,633,450
Bellsouth Corp. .................. 31,097 1,751,150
SBC Communications, Inc. ......... 23,900 1,750,675
Sprint Corp. ..................... 34,052 1,996,299
U.S. West Communications Group .. 33,143 1,495,578
-------------
10,023,223
-------------
TOTAL CREDIT SENSITIVE .......... 32,027,414
-------------
DIVERSIFIED (0.9%)
MISCELLANEOUS (0.9%)
Minnesota Mining & Manufacturing
Co. ............................. 15,755 1,292,895
-------------
ENERGY (11.3%)
OIL--DOMESTIC (7.0%)
Amoco Corp. ...................... 18,794 1,599,839
Atlantic Richfield Co. ........... 18,672 1,496,094
Coastal Corp...................... 18,706 1,158,603
Exxon Corp........................ 22,386 1,369,744
Kerr-McGee Corp. ................. 12,050 762,916
Mobil Corp........................ 19,564 1,412,276
Occidental Petroleum Corp......... 40,822 1,196,595
Tosco Corp. ...................... 39,460 1,492,081
-------------
10,488,148
-------------
OIL--INTERNATIONAL (2.7%)
British Petroleum Co. plc (ADR) .. 16,373 1,304,723
Elf Aquitaine S.A. (ADR).......... 35,661 2,090,626
YPF S.A., Class D (ADR)........... 19,000 649,563
-------------
4,044,912
-------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
RAILROADS (1.6%)
Canadian National Railway Co. ... 15,745 $ 743,951
Norfolk Southern Corp............. 303 9,336
Union Pacific Corp................ 27,890 1,741,382
-------------
2,494,669
-------------
TOTAL ENERGY..................... 17,027,729
-------------
TECHNOLOGY (9.9%)
ELECTRONICS (4.5%)
Computer Associates
International, Inc. ............. 40,120 2,121,345
Intel Corp........................ 30,908 2,171,286
Seagate Technology, Inc.*......... 32,280 621,390
Texas Instruments, Inc. .......... 40,060 1,802,700
-------------
6,716,721
-------------
OFFICE EQUIPMENT (5.4%)
Hewlett Packard Co. .............. 39,153 2,447,062
International Business Machines
Corp. ........................... 23,585 2,466,107
Xerox Corp........................ 43,242 3,191,800
-------------
8,104,969
-------------
TOTAL TECHNOLOGY................. 14,821,690
-------------
TOTAL COMMON STOCKS (91.4%) (Cost
$134,500,653).................... 137,315,566
-------------
PRINCIPAL
AMOUNT
--------------
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (7.3%)
SBC Warburg, Inc. 6.25%, dated
12/31/97, due 1/2/98,
to be repurchased at
$10,948,800, collateralized
by $6,956,000 of U.S.
Treasury Notes, 11.25% due
2/15/15, valued at
$11,161,163 .................. $10,945,000 10,945,000
-------------
U.S. GOVERNMENT AGENCIES (3.3%)
Federal Home Loan Mortgage
Corp.
(Discount Note), 1/9/98 ...... 1,000,000 998,726
(Discount Note), 1/14/98 ..... 2,000,000 1,995,833
(Discount Note), 1/26/98 ..... 2,000,000 1,992,014
-------------
TOTAL U.S. GOVERNMENT
AGENCIES..................... 4,986,573
-------------
TOTAL SHORT-TERM DEBT SECURITIES (10.6%)
(Cost/Amortized Cost
$15,931,573).................. 15,931,573
-------------
TOTAL INVESTMENTS (102.0%)
(Cost/Amortized Cost
$150,432,226)................. 153,247,139
OTHER ASSETS
LESS LIABILITIES (-2.0%) .... (2,987,417)
-------------
NET ASSETS (100%).............. $150,259,722
=============
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
31
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities . $169,567,918
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 35,224,300
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized
appreciation........................... $ 6,344,288
Aggregate gross unrealized
depreciation........................... (3,693,680)
-------------
Net unrealized appreciation............. $ 2,650,608
=============
Federal income tax cost of investments . $150,596,531
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $30,000,578, which was secured by collateral valued at $30,424,707, of
which $2,860,300 was in the form of U.S. Government securities.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $363 as brokerage commissions with EQ Financial Consultants,
Inc., an affiliated broker/dealer.
See Notes to Financial Statements.
32
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS:
AUSTRALIA & NEW ZEALAND (1.7%)
AUSTRALIA (1.7%)
Australia & New Zealand Banking
Group Ltd. ..................... 71,772 $ 474,104
QBE Insurance Group Ltd. ........ 113,043 508,642
------------
TOTAL AUSTRALIA &
NEW ZEALAND ................... 982,746
------------
CANADA (7.6%)
Bank of Nova Scotia ............. 17,717 834,755
Bombardier, Inc., Class B ...... 29,400 604,680
Cae, Inc. ....................... 24,724 193,717
Magna International, Inc.,
Class A ........................ 8,246 517,952
National Bank of Canada ......... 40,078 661,682
Newbridge Networks Corp.* ...... 10,310 360,989
Northern Telecom Ltd. ........... 8,386 745,937
Royal Bank of Canada ............ 8,778 464,246
------------
TOTAL CANADA ................... 4,383,958
------------
JAPAN (9.1%)
Canon, Inc ...................... 24,000 559,189
Circle K Japan Co., Ltd. ........ 5,300 253,880
Hirose Electric ................. 1,600 81,793
Kao Corp. ....................... 33,000 475,494
Murata Manufacturing Co., Ltd. . 9,000 226,250
Nikko Securities Co., Ltd. ..... 103,000 273,140
Nomura Securities Co. ........... 35,000 466,756
Promise Co., Ltd. ............... 8,320 461,673
Ricoh Co., Ltd. ................. 18,000 223,491
Rohm Co. ........................ 5,000 509,676
Sankyo Co. ...................... 13,000 293,926
Sony Corp. ...................... 11,400 1,013,527
Tokyo Electron Ltd. ............. 13,000 416,478
------------
TOTAL JAPAN .................... 5,255,273
------------
LATIN AMERICA (1.3%)
BRAZIL (0.4%)
Petrobras S.A. (ADR) ............ 4,100 95,885
Petrobras S.A. (ADR)* +Section . 5,300 125,213
------------
221,098
------------
MEXICO (0.9%)
Cemex S.A. CPO* ................. 110,676 502,573
------------
TOTAL LATIN AMERICA ............ 723,671
------------
OTHER EUROPEAN COUNTRIES (40.6%)
FRANCE (14.1%)
Banque Nationale de Paris ...... 11,284 599,776
Cetelem ......................... 2,629 358,192
Cie Generale des Eaux ........... 7,416 1,035,049
Elf Aquitaine S.A. .............. 8,627 1,003,390
Lafarge S.A. .................... 10,612 696,300
Michelin, Class B (Registered) . 16,098 810,450
Scor ............................ 18,784 898,236
SGS-Thomson Microelectronics
N.V.* .......................... 11,726 716,019
Societe Generale Paris .......... 6,238 849,906
Television Francaise ............ 3,234 330,466
Total S.A., Class B ............. 7,821 851,168
------------
8,148,952
------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ---------- -------------
<S> <C> <C>
GERMANY (6.3%)
Altana AG ....................... 2,108 $ 139,092
Bayer AG ........................ 15,109 560,619
Bayerische Motoren Werek (BMW)
AG ............................. 1,167 872,517
Deutsche Bank AG ................ 10,116 707,409
Deutsche Telekom AG ............. 22,872 423,379
Mannesmann AG ................... 1,350 677,645
Veba AG ......................... 3,339 227,370
------------
3,608,031
------------
IRELAND (3.6%)
Allied Irish Banks plc .......... 69,165 654,412
Bank of Ireland ................. 43,881 675,534
CRH plc ......................... 62,137 726,718
------------
2,056,664
------------
ITALY (1.2%)
ENI S.p.A. (Registered) ......... 125,660 712,476
------------
NETHERLANDS (5.2%)
ABN-Amro Holdings N.V. .......... 21,978 428,146
Akzo Nobel N.V. ................. 3,928 677,251
ING Groep N.V. .................. 19,506 821,548
Philips Electronics N.V. ........ 14,195 851,288
Vendex International N.V. ...... 3,886 214,457
------------
2,992,690
------------
POLAND (0.0%)
Bank Handlowy (GDS)* +Section .. 600 7,800
------------
PORTUGAL (2.0%)
Banco Totta & Acores S.A., Class
B .............................. 10,700 210,105
Electricidade de Portugal S.A.* 29,327 555,309
Portugal Telecom S.A. ........... 8,480 393,476
------------
1,158,890
------------
SWITZERLAND (8.2%)
ABB AG (Bearer) ................. 87 109,308
CIBA Spezialitaten Chemicals AG* 4,933 587,704
Fischer (Georg) AG (Bearer) .... 320 438,206
Julius Baer Holding AG (Bearer) . 201 372,961
Nestle S.A. (Registered) ........ 723 1,083,634
Novartis AG (Registered) ........ 419 679,925
Union Bank of Switzerland
(Bearer) ....................... 827 1,195,908
Zurich
Versicherungs-Gesellschaft
(Registered) ................... 595 283,547
------------
4,751,193
------------
TOTAL OTHER EUROPEAN COUNTRIES 23,436,696
------------
SCANDINAVIA (3.4%)
FINLAND (0.3%)
Nokia AB ........................ 2,724 193,395
------------
SWEDEN (3.1)
Astra AB, Class A ............... 14,759 255,590
Ericsson LM, Class B ............ 20,499 770,659
Pharmacia & Upjohn, Inc. ........ 9,390 345,329
Sandvik AB, Class B ............. 13,723 392,338
------------
1,763,916
------------
TOTAL SCANDINAVIA .............. 1,957,311
------------
33
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ----------- ------------
SOUTHEAST ASIA (4.8%)
HONG KONG (2.1%)
Dao Heng Bank Group Ltd. ........ 54,000 $ 134,843
Guoco Group Ltd. ................ 19,000 46,464
HSBC Holdings plc (Registered) .. 18,800 463,389
Hutchison Whampoa Ltd. .......... 93,000 583,276
------------
1,227,972
------------
PHILIPPINES (0.0%)
Philippines Long Distance
Telephone Co. .................. 400 8,691
------------
SINGAPORE (2.7%)
DBS Land Ltd. ................... 132,000 202,533
Development Bank of Singapore
(Foreign) ...................... 29,000 248,350
Keppel Land Ltd. ................ 79,000 108,998
Overseas Union Bank Ltd.
(Foreign) ...................... 98,000 375,914
Overseas-Chinese Banking Corp.
(Foreign) ...................... 53,000 308,891
United Overseas Bank Ltd.
(Foreign) ...................... 51,000 283,586
------------
1,528,272
------------
TOTAL SOUTHEAST ASIA ........... 2,764,935
------------
UNITED KINGDOM (18.5%)
Avis Europe plc ................. 181,839 519,942
Bass plc ........................ 41,983 651,619
B.A.T. Industries plc ........... 95,009 864,953
British Petroleum Co. plc........ 47,505 624,521
BTR plc ......................... 179,624 543,125
Burmah Castrol plc .............. 25,949 452,006
Cookson Group plc ............... 32,379 104,821
Dixons Group plc ................ 30,233 303,557
General Electric Co., plc ...... 75,792 491,347
Glaxo Wellcome plc .............. 34,726 821,742
Penninsular & Oriental Steam
Navigation Co. ................. 22,678 258,073
Rio Tinto plc (Registered) ...... 44,389 546,355
Rolls-Royce plc ................. 167,839 648,155
Securicor plc ................... 58,526 274,583
Shell Transport &
Trading Co., plc (Registered) . 111,825 808,555
Siebe plc ....................... 7,800 153,172
Smiths Industries plc ........... 39,442 549,633
Tomkins plc ..................... 63,170 302,080
Unilever plc .................... 55,759 477,387
Vodafone Group plc .............. 173,779 1,253,660
------------
TOTAL UNITED KINGDOM ........... 10,649,286
------------
TOTAL COMMON STOCKS (87.0%)
(Cost $50,330,423) ............. 50,153,876
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (7.6%)
Chase Securities, Inc. 6.25%,
dated 12/31/97, due 1/2/98, to
be repurchased at $4,417,533,
collateralized by $3,303,000 of
U.S. Treasury Notes, 8.875% due
2/15/19, valued at $4,512,332 .. $4,416,000 $ 4,416,000
------------
U.S. GOVERNMENT AGENCIES (5.2%)
Federal Home Loan Mortgage Corp.
(Discount Note), 1/14/98 ........ 1,000,000 997,916
(Discount Note), 1/26/98 ........ 2,000,000 1,992,014
------------
TOTAL U.S. GOVERNMENT AGENCIES . 2,989,930
------------
TOTAL SHORT-TERM DEBT SECURITIES (12.8%)
(Cost/Amortized Cost $7,405,930)
7,405,930
------------
TOTAL INVESTMENTS (99.8%)
(Cost/Amortized Cost
$57,736,353) .................... 57,559,806
OTHER ASSETS
LESS LIABILITIES (0.2%) ......... 118,340
------------
NET ASSETS (100%) ................ $57,678,146
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MARKET SECTOR DIVERSIFICATION
(Unaudited)
As a Percentage of Total Equity
Investments
Basic Materials ............. 3.6%
Business Services ........... 1.2
Capital Goods ............... 14.4
Consumer Cyclicals ......... 13.0
Consumer Non-Cyclicals Credit
Sensitive .................. 13.5
Banks....................... 19.9
Financial Services ........ 5.9
Insurance .................. 3.4
Real Estate ................ 0.4
Utility--Electric ......... 1.1
Utility--Telephone ........ 3.1
Total Credit Sensitive 33.8
Diversified ............ 1.9
Energy ................. 9.8
Technology ............. 8.8
--------
100.0%
========
</TABLE>
- ------------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may only be resold to qualified
institutional buyers. At December 31, 1997 these securities amounted
to $133,013 or 0.23% of net assets.
ss. Illiquid security: is not actively traded.
Glossary:
ADR--American Depositary Receipt
CPO--Certificate of Participation
GDS--Global Depositary Share
34
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/2/98-1/6/98 .... 28 $ 46,921 $ 46,213 $ (708)
French Franc, expiring 1/30/98-2/11/98 ... 10,249 1,748,723 1,706,899 (41,824)
Japanese Yen, expiring 1/5/98-1/7/98 ..... 6,415 49,439 49,170 (269)
Portuguese Escudo, expiring 1/5/98-1/7/98 22,886 125,624 124,345 (1,279)
Singapore Dollar, expiring 1/5/98-1/7/98 . 48 28,660 28,635 (25)
FOREIGN CURRENCY SALE CONTRACTS
French Franc, expiring 2/11/98 ............ 9,706 1,582,943 1,616,613 (33,670)
Italian Lira, expiring 1/9/98 ............. 27,261 15,409 15,410 (1)
Japanese Yen, expiring 1/5/98-6/12/98 .... 421,982 3,345,381 3,313,940 31,441
Mexican Peso, expiring 1/2/98-1/5/98 ..... 174 21,577 21,645 (68)
Swiss Franc, expiring 1/5/98-1/7/98 ...... 489 336,892 335,106 1,786
---------------
$(44,617)
===============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $60,476,860
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 10,214,026
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 2,496,198
Aggregate gross unrealized depreciation (2,793,360)
-------------
Net unrealized (depreciation) ........... $ (297,162)
=============
Federal income tax cost of investments . $57,856,968
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $1,784,601, which was secured by collateral valued at $1,827,012.
See Notes to Financial Statements.
35
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ----------- --------------
<S> <C> <C>
COMMON STOCKS:
BUSINESS SERVICES (8.1%)
ENVIRONMENTAL CONTROL (0.8%)
U.S.A. Waste Services, Inc.* ... 8,600 $ 337,550
--------------
PRINTING, PUBLISHING,
BROADCASTING (3.7%)
CBS Corp. ....................... 17,600 518,100
Gannett Co. ..................... 15,300 945,731
--------------
1,463,831
--------------
PROFESSIONAL SERVICES (3.6%)
Cendant Corp.* .................. 11,200 385,000
Compuware Corp.* ................ 8,000 256,000
Interpublic Group, Inc. ......... 7,000 348,687
Pitney Bowes, Inc. .............. 3,000 269,813
Quintiles Transnational Corp.* . 4,200 160,650
--------------
1,420,150
--------------
TOTAL BUSINESS SERVICES ........ 3,221,531
--------------
CAPITAL GOODS (6.3%)
AEROSPACE (1.3%)
Textron, Inc. ................... 8,500 531,250
--------------
BUILDING MATERIALS & FOREST
PRODUCTS (0.9%)
Masco Corp. ..................... 6,800 345,950
--------------
ELECTRICAL EQUIPMENT (3.2%)
General Electric Co. ............ 17,200 1,262,050
--------------
MACHINERY (0.9%)
Ingersol Rand Co. ............... 9,300 376,650
--------------
TOTAL CAPITAL GOODS ............ 2,515,900
--------------
CONSUMER CYCLICALS (16.4%)
APPAREL & TEXTILES (1.2%)
Jones Apparel Group, Inc.* ..... 6,000 258,000
Liz Claiborne, Inc. ............. 5,300 221,606
--------------
479,606
--------------
FOOD SERVICES, LODGING (1.8%)
Marriott International, Inc. ... 10,300 713,275
--------------
LEISURE RELATED (1.0%)
Carnival Corp., Class A ......... 7,500 415,313
--------------
RETAIL--GENERAL (12.4%)
CompUSA, Inc.* .................. 7,100 220,100
Consolidated Stores Corp.* ..... 8,700 382,256
Costco Co., Inc.* ............... 12,600 562,275
CVS Corp. ....................... 14,600 935,312
Dayton Hudson Corp. ............. 6,500 438,750
Estee Lauder Cos., Class A ..... 3,400 174,888
Home Depot, Inc. ................ 4,400 259,050
Safeway, Inc.* .................. 4,700 297,275
TJX Cos., Inc. .................. 13,800 474,375
Wal-Mart Stores, Inc. ........... 18,900 745,369
Walgreen Co. .................... 13,600 426,700
--------------
4,916,350
--------------
TOTAL CONSUMER CYCLICALS ...... 6,524,544
--------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ---------- --------------
<S> <C> <C>
CONSUMER NON-CYCLICALS (21.3%)
BEVERAGES (1.2%)
Coca Cola Enterprises, Inc. .... 13,900 $ 494,319
--------------
DRUGS (11.9%)
Bristol-Myers Squibb Co. ........ 9,100 861,088
Cardinal Health, Inc. ........... 6,200 465,775
Eli Lilly & Co. ................. 5,600 389,900
Merck & Co., Inc. ............... 6,500 690,625
Pfizer, Inc. .................... 12,400 924,575
Schering-Plough Corp. ........... 10,000 621,250
Warner Lambert Co. .............. 6,200 768,800
--------------
4,722,013
--------------
FOODS (2.2%)
Campbell Soup Co. ............... 4,900 284,813
Conagra, Inc. ................... 8,000 262,500
Sara Lee Corp. .................. 5,800 326,612
--------------
873,925
--------------
HOSPITAL SUPPLIES & SERVICES (1.2%)
Healthsouth Corp.* .............. 17,100 474,525
--------------
SOAPS & TOILETRIES (4.8%)
Clorox Co. ...................... 6,300 498,094
Colgate Palmolive Co. ........... 6,700 492,450
Procter & Gamble Co. ............ 11,400 909,862
--------------
1,900,406
--------------
TOTAL CONSUMER NON-CYCLICALS ... 8,465,188
--------------
CREDIT SENSITIVE (20.6%)
BANKS (8.6%)
BankAmerica Corp. ............... 12,800 934,400
Comerica, Inc. .................. 4,700 424,175
Fifth Third Bancorp ............. 1,500 122,625
First Chicago NBD Corp. ......... 6,400 534,400
MBNA Corp. ...................... 24,500 669,156
Southtrust Corp. ................ 100 6,344
SunTrust Banks, Inc. ............ 900 64,237
Washington Mutual, Inc. ......... 10,300 657,269
--------------
3,412,606
--------------
FINANCIAL SERVICES (5.5%)
American Express Co. ............ 10,000 892,500
Associates First Capital Corp.,
Class A ........................ 1,700 120,913
Conseco, Inc. ................... 9,300 422,569
Franklin Resources, Inc. ........ 3,900 339,056
Morgan Stanley Dean Witter
Discover & Co. ................. 6,500 384,312
--------------
2,159,350
--------------
INSURANCE (3.4%)
American International
Group, Inc. .................... 4,800 522,000
Travelers Group, Inc. ........... 15,300 824,287
--------------
1,346,287
--------------
36
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- -------------------------------- ----------- --------------
REAL ESTATE (0.4%)
Starwood Lodging Trust .......... 2,900 $ 167,838
--------------
UTILITY--TELEPHONE (2.7%)
SBC Communications, Inc. ........ 4,500 329,625
Sprint Corp. .................... 12,900 756,263
--------------
1,085,888
--------------
TOTAL CREDIT SENSITIVE ......... 8,171,969
--------------
DIVERSIFIED (2.2%)
MISCELLANEOUS (2.2%)
Tyco International Ltd. ......... 19,100 860,694
--------------
ENERGY (5.8%)
OIL--DOMESTIC (2.2%)
Exxon Corp. ..................... 9,000 550,687
Mobil Corp. ..................... 4,100 295,969
--------------
846,656
--------------
OIL--SUPPLIES & CONSTRUCTION (3.6%)
Halliburton Holdings Co. ........ 14,000 727,125
Schlumberger Ltd. ............... 8,800 708,400
--------------
1,435,525
--------------
TOTAL ENERGY ................... 2,282,181
--------------
TECHNOLOGY (15.4%)
ELECTRONICS (9.0%)
BMC Software, Inc.* ............. 7,700 505,312
Computer Associates
International, Inc. ............ 13,400 708,525
HBO & Co. ....................... 10,900 523,200
Microsoft Corp.* ................ 7,100 917,675
Peoplesoft, Inc.* ............... 14,500 565,500
Texas Instruments, Inc. ......... 8,000 360,000
--------------
3,580,212
--------------
OFFICE EQUIPMENT (2.6%)
Compaq Computer Corp. ........... 7,200 406,350
Dell Computer Corp.* ............ 2,800 235,200
EMC Corp.* ...................... 14,100 386,868
--------------
1,028,418
--------------
OFFICE EQUIPMENT SERVICES (0.6%)
Parametric Technology Corp.* ... 5,500 260,563
--------------
TELECOMMUNICATIONS (3.2%)
Ericsson Telecommunications,
Class B (ADR) .................. 4,900 182,831
Lucent Technologies, Inc. ...... 4,500 359,438
Tele-Communications TCI Ventures
Group, Class A* ................ 12,100 342,581
Tellabs, Inc.* .................. 7,000 370,125
--------------
1,254,975
--------------
TOTAL TECHNOLOGY ............... 6,124,168
--------------
TOTAL COMMON STOCKS (96.1%)
(Cost $35,627,783) ............ 38,166,175
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------- ------------ -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (6.3%)
J.P. Morgan Securities, Inc.
6.25%, dated 12/31/97, due
1/2/98, to be repurchased at
$2,489,864, collateralized
by $1,862,000 of U.S.
Treasury Notes, 8.875% due
2/15/19, valued at
$2,543,736 .................. $2,489,000 $ 2,489,000
-------------
U.S. GOVERNMENT AGENCIES (2.5%)
Federal Home Loan
Mortgage Corp.
(Discount Note), 1/26/98 ... 1,000,000 996,007
-------------
TOTAL SHORT-TERM DEBT SECURITIES (8.8%)
(Cost/Amortized Cost
$3,485,007) ................. 3,485,007
-------------
TOTAL INVESTMENTS (104.9%)
(Cost/Amortized Cost
$39,112,790) ................ 41,651,182
OTHER ASSETS
LESS LIABILITIES (-4.9%) ... (1,956,576)
-------------
NET ASSETS (100%) ............ $39,694,606
=============
</TABLE>
- ------------
* Non-income producing
Glossary:
ADR--American Depositary Receipt
37
<PAGE>
EQ ADVISORS TRUST
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities $43,488,056
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities 7,975,596
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation $ 2,852,253
Aggregate gross unrealized depreciation (323,418)
------------
Net unrealized appreciation ............. $ 2,528,835
============
Federal income tax cost of investments . $39,122,347
============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $6,352,351, which was secured by collateral valued at $6,427,550.
See Notes to Financial Statements.
38
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (10.6%)
CHEMICALS (5.5%)
Dow Chemical Co. ................. 15,200 $ 1,542,800
Eastman Chemical Co............... 6,000 357,375
E.I. Du Pont de Nemours & Co. .... 14,900 894,931
Great Lakes Chemical Corp. ...... 16,300 731,462
Imperial Chemical Industries plc
(ADR)............................ 8,200 532,488
Lonrho plc........................ 78,400 121,105
Nalco Chemical Co................. 11,900 470,794
Witco Corp........................ 20,700 844,819
------------
5,495,774
------------
CHEMICALS--SPECIALTY (1.3%)
International Flavors &
Fragrances, Inc. ................ 18,800 968,200
Lubrizol Corp. ................... 9,500 350,312
------------
1,318,512
------------
METALS & MINING (1.2%)
Inco Ltd. ........................ 9,500 161,500
Newmont Mining Corp............... 17,800 522,875
Reynolds Metals Co................ 8,100 486,000
------------
1,170,375
------------
PAPER (2.2%)
Consolidated Papers, Inc.......... 9,400 501,725
Georgia-Pacific Corp. (Timber
Group)*.......................... 4,900 111,169
International Paper Co............ 11,700 504,562
Kimberly Clark Corp. ............. 4,600 226,838
Union Camp Corp................... 16,100 864,369
------------
2,208,663
------------
STEEL (0.4%)
USX-U.S. Steel Group, Inc......... 11,300 353,125
------------
TOTAL BASIC MATERIALS ........... 10,546,449
------------
BUSINESS SERVICES (4.8%)
ENVIRONMENTAL CONTROL (0.5%)
Waste Management, Inc. ........... 18,300 503,250
------------
PRINTING, PUBLISHING,
BROADCASTING (3.6%)
Donnelley (R.R.) & Sons Co. ...... 18,100 674,225
Dow Jones & Co., Inc.............. 11,900 638,881
Dun & Bradstreet Corp. ........... 16,400 507,375
Knight Ridder, Inc................ 16,400 852,800
McGraw Hill Cos., Inc. ........... 7,100 525,400
Readers Digest Association, Inc.,
Class A (Non Voting) ............ 15,900 375,638
------------
3,574,319
------------
PROFESSIONAL SERVICES (0.2%)
Deluxe Corp. ..................... 5,700 196,650
------------
TRUCKING, SHIPPING (0.5%)
Alexander & Baldwin, Inc.......... 8,100 221,231
Gatx Corp......................... 4,400 319,275
------------
540,506
------------
TOTAL BUSINESS SERVICES ......... 4,814,725
------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ---------- ------------
<S> <C> <C>
CAPITAL GOODS (5.1%)
AEROSPACE (0.2%)
Allied Signal, Inc. .............. 6,300 $ 245,306
------------
BUILDING MATERIALS & FOREST
PRODUCTS (1.2%)
Armstrong World Industries, Inc. . 5,300 396,175
Georgia-Pacific Corp.............. 4,900 297,675
PPG Industries, Inc............... 8,300 474,138
------------
1,167,988
------------
ELECTRICAL EQUIPMENT (2.6%)
AMP, Inc. ........................ 15,000 630,000
Cooper Industries, Inc. .......... 10,200 499,800
General Electric Co............... 12,400 909,850
Hubbell, Inc., Class B............ 9,700 478,331
Raytheon Co., Class A ............ 657 32,391
------------
2,550,372
------------
MACHINERY (1.1%)
Pall Corp......................... 25,900 535,806
Tomkins plc....................... 124,000 592,970
------------
1,128,776
------------
TOTAL CAPITAL GOODS ............. 5,092,442
------------
CONSUMER CYCLICALS (6.2%)
APPAREL & TEXTILES (0.1%)
Unifi, Inc. ...................... 1,600 65,100
------------
AUTO RELATED (1.1%)
Echlin, Inc....................... 11,500 416,156
Genuine Parts Co.................. 21,200 719,475
------------
1,135,631
------------
AUTOS & TRUCKS (0.7%)
General Motors Corp............... 11,600 703,250
------------
FOOD SERVICES, LODGING (0.7%)
Hilton Hotels Corp................ 10,900 324,275
ITT Corp. (New)*.................. 4,600 381,225
------------
705,500
------------
HOUSEHOLD FURNITURE,
APPLIANCES (0.8%)
Rubbermaid, Inc. ................. 2,300 57,500
Whirlpool Corp.................... 12,900 709,500
------------
767,000
------------
PHOTO & OPTICAL (1.3%)
Bausch & Lomb, Inc. .............. 12,800 507,200
Eastman Kodak Co. ................ 13,100 796,644
------------
1,303,844
------------
RETAIL--GENERAL (1.5%)
J.C. Penny Co. ................... 16,600 1,001,187
May Department Stores Co.......... 9,200 484,725
------------
1,485,912
------------
TOTAL CONSUMER CYCLICALS ........ 6,166,237
------------
CONSUMER NON-CYCLICALS (14.0%)
BEVERAGES (1.9%)
Anheuser-Busch Cos., Inc. ........ 24,600 1,082,400
Brown-Forman Corp., Class B ..... 10,200 563,550
Cadbury Schweppes plc............. 24,500 247,001
------------
1,892,951
------------
39
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- ------------
CONTAINERS (0.4%)
Tupperware Corp................... 14,700 $ 409,763
------------
DRUGS (3.2%)
Abbott Laboratories............... 8,000 524,500
American Home Products Corp. ..... 18,000 1,377,000
Amgen, Inc........................ 6,100 330,162
Pharmacia & Upjohn, Inc........... 27,800 1,018,175
------------
3,249,837
------------
FOODS (3.9%)
General Mills, Inc. .............. 11,100 795,037
H.J. Heinz Co. ................... 12,800 650,400
McCormick & Co., Inc.
(Non Voting) .................... 24,600 688,800
Quaker Oats Co.................... 16,000 844,000
Sara Lee Corp..................... 7,500 422,344
Unilever N.V. (NY Shares)......... 7,900 493,256
------------
3,893,837
------------
HOSPITAL SUPPLIES &
SERVICES (1.7%)
Bard (C.R.), Inc.................. 9,000 281,813
Baxter International, Inc......... 6,900 348,019
Smith & Nephew plc................ 128,900 381,279
U.S. Surgical Corp................ 24,800 726,950
------------
1,738,061
------------
SOAPS & TOILETRIES (0.2%)
Colgate Palmolive Co.............. 2,700 198,450
------------
TOBACCO (2.7%)
Philip Morris Cos., Inc. ......... 23,600 1,069,375
RJR Nabisco Holdings Corp......... 14,100 528,750
UST, Inc.......................... 28,800 1,063,800
------------
2,661,925
------------
TOTAL CONSUMER NON-CYCLICALS .... 14,044,824
------------
CREDIT SENSITIVE (34.9%)
BANKS (9.1%)
Banc One Corp. ................... 15,600 847,275
BankBoston Corp................... 6,300 591,806
Bankers Trust New York Corp. ..... 7,800 877,013
Chase Manhattan Corp. ............ 8,700 952,650
First Union Corp.................. 11,360 582,200
Fleet Financial Group, Inc. ..... 9,200 689,425
J.P. Morgan & Co. ................ 7,100 801,413
Mellon Bank Corp.................. 31,000 1,879,375
Mercantile Bankshares Corp. ...... 11,050 432,331
National City Corp................ 8,000 526,000
PNC Bank Corp. ................... 6,800 388,025
Wells Fargo & Co. ................ 1,600 543,100
------------
9,110,613
------------
FINANCIAL SERVICES (2.6%)
American Express Co............... 5,300 473,025
Fannie Mae........................ 16,400 935,825
H&R Block, Inc.................... 15,500 694,594
Transamerica Corp................. 4,900 521,850
------------
2,625,294
------------
INSURANCE (4.7%)
American General Corp............. 15,300 827,156
Exel Ltd.......................... 9,700 614,737
Hilb, Rogal & Hamilton Co. ...... 2,900 56,006
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE I)
- ---------------------------------- ----------- -------------
<S> <C> <C>
Lincoln National Corp. ........... 6,700 $ 523,438
Safeco Corp....................... 11,000 536,250
St. Paul Cos...................... 9,900 812,419
Travelers Group, Inc.............. 11,800 635,725
USF&G Corp. ...................... 18,800 414,775
Willis Corroon Group plc (ADR) ... 26,400 325,050
------------
4,745,556
------------
REAL ESTATE (1.4%)
Rouse Co. ........................ 4,200 137,550
Security Capital Pacific Trust ... 7,300 177,025
Simon Debartolo Group, Inc. ...... 26,000 849,875
Weingarten Realty Investors ...... 5,300 237,506
------------
1,401,956
------------
UTILITY--ELECTRIC (8.3%)
Baltimore Gas & Electric Co. ..... 11,200 381,500
Central & South West Corp. ...... 13,300 359,931
Dominion Resources, Inc. ......... 12,600 536,288
DQE, Inc. ........................ 14,800 519,850
Duke Energy Corp.................. 16,600 919,225
Entergy Corp...................... 12,800 383,200
FirstEnergy Corp.................. 24,370 706,730
GPU, Inc. ........................ 5,800 244,325
Houston Industries, Inc........... 19,500 520,406
Pacificorp........................ 18,000 491,625
Peco Energy Co.................... 17,400 421,950
PG&E Corp......................... 10,200 310,463
Public Service Enterprise Group,
Inc. ............................ 10,500 332,719
Southern Co. ..................... 28,500 737,437
TECO Energy, Inc.................. 12,400 348,750
Unicom Corp....................... 20,300 624,225
Western Resources, Inc............ 9,500 408,500
------------
8,247,124
------------
UTILITY--GAS (0.5%)
Enron Corp. ...................... 12,000 498,750
------------
UTILITY--TELEPHONE (8.3%)
Alltel Corp. ..................... 31,900 1,309,894
AT&T Corp. ....................... 29,700 1,819,125
Bell Atlantic Corp. .............. 10,000 910,000
Bellsouth Corp. .................. 12,500 703,906
GTE Corp.......................... 19,500 1,018,875
SBC Communications, Inc........... 15,100 1,106,075
Southern New England
Telecommunications Corp. ........ 8,800 442,750
Sprint Corp....................... 9,100 533,488
U.S. West Communications Group ... 9,200 415,150
------------
8,259,263
------------
TOTAL CREDIT SENSITIVE........... 34,888,556
------------
DIVERSIFIED (1.5%)
MISCELLANEOUS (1.5%)
Fortune Brands, Inc. ............. 14,100 522,581
Minnesota Mining & Manufacturing
Co............................... 3,400 279,013
Olin Corp. ....................... 15,100 707,812
------------
TOTAL DIVERSIFIED ............... 1,509,406
------------
40
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ----------- ------------
ENERGY (13.0%)
OIL--DOMESTIC (7.2%)
Amoco Corp. ...................... 9,900 $ 842,737
Atlantic Richfield Co. ........... 17,600 1,410,200
Chevron Corp...................... 10,500 808,500
Exxon Corp........................ 17,900 1,095,256
Mobil Corp........................ 14,400 1,039,500
Occidental Petroleum Corp......... 21,400 627,288
Phillips Petroleum Co............. 11,900 578,637
Texaco, Inc. ..................... 15,400 837,375
------------
7,239,493
------------
OIL--INTERNATIONAL (2.4%)
Amerada Hess Corp................. 11,000 603,625
British Petroleum Co. plc (ADR) .. 7,900 629,531
Repsol S.A. (ADR)................. 9,400 400,088
Royal Dutch Petroleum Co.
(NY Shares)...................... 13,600 736,950
------------
2,370,194
------------
OIL--SUPPLIES &
CONSTRUCTION (0.6%)
USX-Marathon Group, Inc........... 16,700 563,625
------------
RAILROADS (2.8%)
Burlington Northern Santa Fe
Corp. ........................... 7,300 678,444
Norfolk Southern Corp............. 26,700 822,694
Union Pacific Corp................ 21,000 1,311,187
------------
2,812,325
------------
TOTAL ENERGY..................... 12,985,637
------------
TECHNOLOGY (1.0%)
TELECOMMUNICATIONS (1.0%)
BCE, Inc. ........................ 16,100 536,685
Frontier Corp. ................... 17,500 421,094
------------
TOTAL TECHNOLOGY................. 957,779
------------
TOTAL COMMON STOCKS (91.1%) (Cost
$85,559,610)..................... 91,006,055
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------- ----------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (8.6%)
Ciesco L.P. 5.62%, 1/26/98
Section + ...................... $ 800,000 $ 796,765
Coca Cola Co. 5.69%, 1/9/98 + ... 1,435,000 1,433,151
Golden Manager's Acceptance
Corp. 5.86%, 1/23/98 + ......... 699,000 696,497
Minnesota Mining &
Manufacturing Co. 5.60%,
1/9/98 + ....................... 4,364,000 4,358,375
Sara Lee Corp. 6.00%, 1/7/98 + .. 1,322,000 1,320,678
-------------
TOTAL COMMERCIAL PAPER ......... 8,605,466
-------------
U.S. GOVERNMENT (1.5%)
U.S. Treasury Bill 1/22/98 ..... 1,464,000 1,460,071
-------------
U.S. GOVERNMENT AGENCIES (0.4%)
Federal Home Loan Mortgage
Corp. (Discount Note),
1/14/98......................... 447,000 446,077
-------------
TOTAL SHORT-TERM DEBT SECURITIES (10.5%)
(Cost/Amortized Cost
$10,511,614).................... 10,511,614
-------------
TOTAL INVESTMENTS (101.6%)
(Cost/Amortized Cost
$96,071,224) ................... 101,517,669
OTHER ASSETS
LESS LIABILITIES (-1.6%) ...... (1,570,359)
-------------
NET ASSETS (100%) ............... $ 99,947,310
=============
</TABLE>
- ------------
* Non-income producing
ss Illiquid security: is not actively traded.
+ Interest rates disclosed for Commercial Paper represent effective
yields at December 31, 1997.
Glossary:
ADR--American Depositary Receipt
41
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1);
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$
AMOUNT ORIGNATION CURRENT UNREALIZED
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------ --------- --------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/8/98 30 $51,613 $50,336 $(1,277)
==============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities.................................... $88,872,144
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities.................................... 3,678,196
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation . $ 6,740,414
Aggregate gross unrealized depreciation . (1,303,778)
-------------
Net unrealized appreciation.............. $ 5,436,636
=============
Federal income tax cost of investments .. $96,081,033
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $25,415,218, which was secured by collateral valued at $25,901,210, of
which $666,500 was in the form of U.S. Government securities.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $694 as brokerage commissions with Donaldson, Lufkin & Jenrette
Securities Corp., an affiliated broker/dealer.
See Notes to Financial Statements.
42
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS, RIGHTS AND WARRANTS:
AUSTRALIA & NEW ZEALAND (2.1%)
AUSTRALIA (1.8%)
Australia & New Zealand Banking
Group Ltd. ...................... 8,000 $ 52,846
Australian Gas & Light Co., Ltd. . 21,000 146,380
Brambles Industries Ltd. ......... 2,000 39,673
Broken Hill Proprietary Ltd. .... 13,192 122,463
Commonwealth Bank of Australia .. 10,000 114,655
Fosters Brewing Corp. ............ 27,000 51,360
John Fairfax Holdings Ltd. ...... 34,000 70,878
Lend Lease Corp. ................. 5,032 98,343
National Australia Bank Ltd. .... 5,126 71,562
News Corp., Ltd. ................. 21,034 116,061
Publishing & Broadcasting Ltd. .. 16,000 70,878
Sydney Harbour Casino Holdings* . 45,200 42,843
Tabcorp Holdings Ltd. ............ 15,000 70,356
Telstra Corp., Ltd.* ............. 43,000 90,760
Westpac Banking Corp. ............ 13,000 83,130
WMC Ltd. ......................... 8,000 27,882
Woodside Petroleum Ltd. .......... 12,000 84,584
------------
1,354,654
------------
NEW ZEALAND (0.3%)
Air New Zealand Ltd., Class B ... 21,000 42,068
Fletcher Challenge Building ..... 16,251 33,215
Fletcher Challenge Energy ........ 14,000 49,018
Telecom Corp. of New Zealand .... 20,000 96,969
------------
221,270
------------
TOTAL AUSTRALIA & NEW ZEALAND . 1,575,924
------------
CANADA (0.2%)
Alcan Aluminum Ltd. .............. 3,630 100,054
Royal Bank of Canada ............. 1,250 66,109
------------
TOTAL CANADA .................... 166,163
------------
CHINA & KOREA (0.3%)
CHINA (0.3%)
Huaneng Power International, Inc.
(ADR)* .......................... 8,000 185,500
------------
KOREA (0.0%)
Samsung Electronics Co. (Foreign) 280 6,343
------------
TOTAL CHINA & KOREA ............. 191,843
------------
JAPAN (17.6%)
Advantest Corp. .................. 1,000 56,716
Alps Electric Co., Ltd. .......... 8,000 75,417
Amada Co., Ltd. .................. 17,000 63,192
Canon, Inc. ...................... 36,000 838,781
Citizen Watch Co., Ltd. .......... 10,000 67,063
Daifuku Co., Ltd. ................ 2,000 9,734
Daiichi Pharma Co., Ltd. ......... 21,000 236,597
Dainippon Screen Manufacturing
Co., Ltd. ....................... 15,000 68,979
Daiwa House Industry Co., Ltd. .. 21,000 111,056
DDI Corp. ........................ 32 84,614
Denso Corp. ...................... 31,000 558,345
East Japan Railway Co. ........... 59 266,342
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ------------ --------------
<S> <C> <C>
Fanuc ............................ 4,900 $ 185,522
Hitachi Ltd. ..................... 35,000 249,473
Hitachi Zosen Corp. .............. 25,000 40,046
Honda Motor Co., Ltd. ............ 2,000 73,424
Inax ............................. 5,000 14,524
Ishihara Sangyo Kaisha* .......... 5,000 5,557
Ito Yokado Co., Ltd. ............. 8,000 407,741
Kao Corp. ........................ 16,000 230,542
Kokuyo ........................... 8,000 137,957
Komatsu Ltd. ..................... 21,000 105,423
Komori Corp. ..................... 7,000 104,081
Kumagai Gumi Co., Ltd. ........... 9,000 4,897
Kuraray Co., Ltd. ................ 18,000 148,994
Kyocera Corp. .................... 11,000 499,099
Makita Corp. ..................... 12,000 114,965
Marui Co., Ltd. .................. 22,000 342,288
Matsushita Electric Industries
Co. ............................. 35,000 512,359
Mitsubishi Corp. ................. 21,000 165,779
Mitsubishi Heavy Industries Ltd. . 98,000 408,599
Mitsubishi Paper Mills ........... 11,000 15,428
Mitsui Chemicals Industries,
Inc.............................. 5,000 9,197
Mitsui Fudosan Co., Ltd. ......... 51,000 492,508
Murata Manufacturing Co., Ltd. .. 10,000 251,389
National House ................... 3,000 20,579
NEC Corp. ........................ 62,000 660,510
Nippon Hodo ...................... 2,000 6,438
Nippon Steel Corp. ............... 129,000 190,818
Nippon Telegraph & Telephone
Corp. ........................... 27 231,769
Nomura Securities Co. ............ 33,000 440,084
Pioneer Electric Corp. ........... 10,000 154,053
Sangetsu Co., Ltd. ............... 2,000 20,540
Sankyo Co. ....................... 21,000 474,804
Sega Enterprises ................. 2,500 45,219
Sekisui Chemical Co. ............. 25,000 127,036
Sekisui House Ltd. ............... 15,000 96,455
Seven-Eleven Japan Co., Ltd. .... 3,000 212,454
Sharp Corp. ...................... 31,000 213,359
Shin-Etsu Chemical Co. ........... 17,000 324,430
Shiseido Co., Ltd. ............... 7,000 95,497
Sony Corp. ....................... 7,900 702,357
Sumitomo Corp. ................... 36,000 201,418
Sumitomo Electric Industries .... 48,000 654,838
Sumitomo Forestry Co. ............ 8,000 38,935
TDK Corp. ........................ 8,000 603,334
Teijin Ltd. ...................... 40,000 83,694
Tokio Marine & Fire Insurance Co. 8,000 90,745
Tokyo Electron Ltd. .............. 4,000 128,147
Tokyo Steel Manufacturing ........ 7,800 26,364
Toppan Printing Co., Ltd. ........ 17,000 221,498
Uny Co., Ltd. .................... 8,000 109,753
Yurtec Corp. ..................... 3,000 18,417
------------
TOTAL JAPAN ..................... 13,150,173
------------
LATIN AMERICA (5.0%)
ARGENTINA (0.9%)
Banco Frances Rio Plata (ADR) .... 2,220 60,772
Banco Galicia Y Bueno (ADR) ..... 2,180 56,135
Perez Companc S.A. ............... 16,498 117,816
43
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ ------------
Telefonica de Argentina (ADR) ... 4,630 $ 172,468
YPF S.A., Class D (ADR) .......... 8,361 285,842
------------
693,033
------------
BRAZIL (1.7%)
Eletrobras ....................... 2,730,000 135,760
Pao de Acucar (ADR) .............. 2,000 38,750
Telebras S.A. (ADR) .............. 8,000 931,500
Uniao de Bancos Brasileiros ..... 1,675,000 69,038
USIMINAS S.A. (ADR) .............. 6,000 35,483
White Martins S.A. ............... 7,000 10,224
------------
1,220,755
------------
CHILE (0.3%)
Chilectra S.A. (ADR) +Section ... 2,211 56,475
Chilgener S.A. (ADS) ............. 1,094 26,803
CCU S.A. (ADS) ................... 649 19,064
Endesa Empresa S.A. (ADS) ........ 2,841 50,250
Enersis S.A. (ADR) ............... 1,645 47,705
Santa Isabel S.A. (ADR) .......... 602 10,535
------------
210,832
------------
MEXICO (1.9%)
Cemex S.A.* ...................... 10,000 53,102
Cemex S.A. (ADR)* ................ 16,000 145,078
Cifra S.A., Class B (ADR) ........ 21,149 49,066
Femsa S.A., Class B .............. 17,000 136,675
Gruma S.A. (ADS)* +Section ...... 3,411 51,165
Gruma S.A., Class B* ............. 15,000 59,553
Grupo Financeiro Banamex, Class
B* .............................. 22,000 65,918
Grupo Industrial Maseca S.A.,
Class B ......................... 26,000 26,064
Grupo Modelo S.A., Class C ...... 9,000 75,819
Grupo Televisa S.A. (GDR)* ...... 2,000 77,375
Kimberly Clark de Mexico,
Class A ......................... 23,000 109,293
Panamerican Beverages, Inc.,
Class A ......................... 5,000 163,125
Telmex, Class L (ADR) ............ 6,000 336,375
TV Azteca S.A. (ADR)* ............ 3,800 85,738
------------
1,434,346
------------
PANAMA (0.0%)
Banco Latinoamericano de
Exportaciones S.A. .............. 387 16,012
------------
PERU (0.1%)
Credicorp Ltd. ................... 920 16,560
Telefonica de Peru S.A. (ADS) ... 1,330 31,006
------------
47,566
------------
VENEZUELA (0.1%)
CANTV (ADR) ...................... 2,059 85,706
------------
TOTAL LATIN AMERICA ............. 3,708,250
------------
OTHER EUROPEAN COUNTRIES (34.6%)
BELGIUM (1.1%)
Credit Communal Holdings/Dexia .. 445 59,752
Generale de Banque S.A. .......... 530 230,662
Kredietbank N.V. ................. 1,220 512,024
UCB S.A. ......................... 6 19,805
------------
822,243
------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ---------- -------------
<S> <C> <C>
CZECH REPUBLIC (0.0%)
SPT Telecom A/S* ................. 190 $ 20,315
------------
FRANCE (7.5%)
Accor S.A. ....................... 400 74,371
Alcatel Alsthom .................. 1,990 252,945
Assurances Ben de France ......... 1,520 80,540
Canal Plus ....................... 710 132,008
Carrefour S.A. ................... 251 130,953
Cie Generale des Eaux ............ 7,000 976,988
Compagnie de Saint Gobain ........ 2,560 363,679
Credit Commercial de France ..... 1,739 119,189
Dexia France ..................... 264 30,574
Elf Aquitaine S.A. ............... 2,410 280,302
Groupe Danone .................... 1,310 233,987
Groupe GTM ....................... 440 29,609
Guilbert S.A. .................... 660 94,090
Havas S.A. ....................... 550 39,570
Lapeyre S.A. ..................... 1,100 60,588
Legrand S.A. ..................... 500 99,609
L'Oreal .......................... 270 105,649
LVMH (Moet Hennessy Louis
Vuitton) ........................ 287 47,639
Pathe S.A. ....................... 390 75,687
Pinault-Printemps-Redoute S.A. .. 980 522,851
Primagaz Cie Gaz ................. 150 12,536
Sanofi S.A. ...................... 3,298 367,145
Schneider S.A. ................... 5,559 301,848
Societe Generale Paris ........... 1,325 180,527
Sodexho Alliance S.A. ............ 458 245,266
Television Francaise ............. 450 45,983
Total S.A., Class B .............. 6,500 707,402
------------
5,611,535
------------
GERMANY (5.0%)
Allianz AG (Registered) .......... 1,450 373,996
Bayer AG ......................... 6,852 254,243
Bayer Hypothecken Und Wechselbank
AG .............................. 5,430 263,358
Bayerische Vereinsbank AG ........ 3,733 240,712
Bilfinger & Berger BAU AG ........ 1,640 51,781
Buderus AG ....................... 110 49,346
Commerzbank AG ................... 2,240 87,162
Deutsche Bank AG ................. 5,702 398,739
Deutsche Telekom AG .............. 6,220 115,137
Dresdner Bank AG* ................ 1,900 86,395
Dresdner Bank AG*
(Warrants)(expiring 4/30/02) ... 4,238 75,386
Gehe AG .......................... 7,230 365,730
Hoechst AG ....................... 2,030 70,302
Hornbach Baumarkt AG ............. 260 7,443
Mannesmann AG .................... 220 110,431
Rhoen-Kilnikum AG ................ 1,070 104,683
SAP AG ........................... 1,050 318,394
Siemens AG ....................... 2,439 147,103
Veba AG .......................... 7,680 522,972
Volkswagen AG .................... 120 67,039
------------
3,710,352
------------
ITALY (3.6%)
Assicurazioni Generali S.p.A. ... 9,000 221,057
Banca Commerciale Italiana ...... 14,000 48,672
44
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ ------------
Banca di Roma* ................... 161,000 $ 162,456
Credito Italiano S.p.A. .......... 112,205 346,002
ENI S.p.A. (Registered) .......... 70,683 400,763
Gucci Group N.V. ................. 1,729 72,402
Industrie Natuzzi S.p.A. (ADR) .. 2,000 41,250
Instituto Mobiliare Italiano
S.p.A. .......................... 14,000 166,196
Italgas S.p.A. ................... 15,000 61,899
La Rinascente S.p.A. ............. 3,000 22,386
Mediolanum S.p.A. ................ 10,000 188,242
Telecom Italia S.p.A. ............ 62,665 400,291
Telecom Italia Mobile S.p.A. .... 116,000 535,410
Telecom Italia Mobile S.p.A.
(Savings Shares) ................ 12,000 34,121
------------
2,701,147
------------
NETHERLANDS (9.0%)
ABN-Amro Holdings N.V. ........... 21,360 416,107
Akzo Nobel N.V. .................. 580 100,002
Baan Co., N.V.* .................. 3,136 102,695
Baan Co., N.V. (ADR)* ............ 3,000 99,000
CSM .............................. 6,120 271,645
Elsevier N.V. .................... 46,997 760,240
Fortis Amev N.V. ................. 7,400 322,620
ING Groep N.V. ................... 20,340 856,674
ING Groep N.V.*
(Warrants)(expiring 3/15/01) ... 3,244 33,981
Koninklijke Ahold N.V. ........... 3,838 100,131
Koninklijke PTT Nederland N.V. ... 1,950 81,360
Nutricia Verenigde Bedrijven N.V. 4,210 127,692
Otra N.V. ........................ 730 10,441
Polygram N.V. .................... 3,850 184,179
Royal Dutch Petroleum Co. ........ 28,820 1,581,962
Unilever N.V. .................... 9,560 589,352
Wolters Kluwer N.V. .............. 8,040 1,038,481
------------
6,676,562
------------
PORTUGAL (0.1%)
Jeronimo Martins & Filho ......... 2,550 80,913
------------
RUSSIA (0.0%)
Gazprom (ADS)* ................... 591 13,859
LUKoil Holding (ADR) 110 10,099
------------
23,958
------------
SPAIN (2.1%)
Argentina Corp. Banc ............. 1,680 102,222
Banco Bilbao Vizcaya S.A. ........ 2,990 96,755
Banco de Santander S.A. .......... 9,138 305,300
Banco Popular Espanol S.A. ...... 3,030 211,812
Endesa S.A. ...................... 11,276 200,207
Gas Natural SDG S.A. ............. 1,890 98,005
Iberdrola S.A. ................... 14,550 191,485
Repsol S.A. ...................... 2,880 122,875
Telefonica de Espana S.A. ........ 9,014 257,374
------------
1,586,035
------------
SWITZERLAND (6.2%)
ABB AG (Bearer) .................. 240 301,541
Adecco S.A. (Bearer) ............. 1,050 304,468
CS Holdings ...................... 1,140 176,405
Nestle S.A. (Registered) ......... 620 929,257
Novartis AG (Registered) ......... 820 1,330,640
Roche Holdings AG ................ 100 993,153
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ----------- ------------
<S> <C> <C>
Swiss Bank Corp. (Registered) ... 1,150 $ 357,480
Union Bank of Switzerland
(Bearer) ........................ 150 216,912
------------
4,609,856
------------
TOTAL OTHER EUROPEAN COUNTRIES 25,842,916
------------
SCANDINAVIA (5.0%)
DENMARK (0.3%)
Den Danske Bank AS ............... 1,070 142,575
Tele Danmark A/S, Class B ........ 240 14,886
Unidanmark A/S, Class A
(Registered) .................... 930 68,272
------------
225,733
------------
NORWAY (1.6%)
Bergesen ASA, Class A ............ 810 19,083
Norsk Hydro ASA .................. 11,850 576,793
Orkla ASA, Class A ............... 7,090 609,568
Saga Petroleum ASA, Class B ..... 1,250 18,955
------------
1,224,399
------------
SWEDEN (3.1%)
ABB AB, Class A .................. 14,590 172,730
Astra AB, Class B ................ 33,273 559,452
Atlas Copco AB, Class B .......... 7,930 236,205
Electrolux AB, Class B ........... 4,230 293,546
Esselte AB, Class B .............. 1,890 38,324
Granges AB* ...................... 1,115 17,484
Hennes & Mauritz AB, Class B .... 8,490 374,249
Nordbanken AB* ................... 52,989 299,652
Sandvik AB, Class A .............. 2,330 66,321
Sandvik AB, Class B .............. 7,060 201,844
Scribona AB, Class B ............. 940 10,477
------------
2,270,284
------------
TOTAL SCANDINAVIA ............... 3,720,416
------------
SOUTHEAST ASIA (3.0%)
HONG KONG (2.2%)
Cheung Kong Ltd. ................. 10,000 65,492
China Light & Power Co. .......... 14,000 77,687
Dao Heng Bank Group Ltd. ......... 30,000 74,913
Hong Kong Land Holdings .......... 96,000 184,320
Hutchison Whampoa Ltd. ........... 69,000 432,753
New World Development Co. ........ 92,000 318,183
HSBC Holdings plc ................ 2,800 69,015
Sun Hung Kai Properties Ltd. .... 10,000 69,686
Swire Pacific Ltd., Class A ..... 38,000 208,414
Wharf Holdings Ltd. .............. 85,000 186,476
------------
1,686,939
------------
MALAYSIA (0.2%)
Berjaya Sports Toto Bhd. ......... 36,000 92,094
Tanjong plc ...................... 28,000 46,433
Time Engineering Bhd. ............ 7,000 1,800
------------
140,327
------------
SINGAPORE (0.6%)
City Developments Ltd. ........... 6,000 27,833
Overseas Union Bank Ltd.
(Foreign) ....................... 15,000 57,538
Overseas-Chinese Banking Corp.
(Foreign) ....................... 3,200 18,650
Singapore Land Ltd. .............. 34,000 74,814
Singapore Press Ltd. (Foreign) .. 13,000 163,128
45
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- --------------------------------- ------------ ------------
United Overseas Bank Ltd.
(Foreign) ....................... 14,000 $ 77,847
------------
419,810
------------
TOTAL SOUTHEAST ASIA ............ 2,247,076
------------
SOUTHERN CENTRAL ASIA (0.1%)
INDIA (0.1%)
Mahanagar Telephone Nigam Ltd.
(GDR)* .......................... 6,000 90,060
------------
UNITED KINGDOM (19.0%)
Abbey National plc ............... 29,000 519,925
Argos plc ........................ 28,000 252,839
ASDA Group plc ................... 88,000 256,684
BG plc ........................... 27,529 123,955
British Petroleum Co. plc......... 23,000 302,368
Cable & Wireless plc ............. 56,000 492,334
Cadbury Schweppes plc ............ 40,000 403,267
Caradon plc ...................... 63,100 183,536
Centrica plc* .................... 13,000 19,120
Compass Group plc ................ 10,000 123,082
Electrocomponents plc ............ 20,000 148,883
GKN plc .......................... 3,000 61,476
Glaxo Wellcome plc ............... 43,000 1,017,534
Diageo plc ....................... 129,000 1,186,063
Heywood Williams Group plc ...... 4,000 13,738
Hillsdown Holdings plc ........... 16,000 38,913
John Laing plc, Class A .......... 9,000 47,771
Kingfisher plc ................... 62,000 863,984
Ladbroke Group plc ............... 39,000 169,195
National Westminster Bank ........ 106,000 1,762,805
Rank Group plc ................... 42,000 233,974
Reed International plc ........... 110,000 1,102,657
Rio Tinto plc (Registered) ...... 28,000 344,634
Rolls-Royce plc .................. 17,000 65,650
Safeway plc ...................... 52,000 293,100
Shell Transport & Trading Co.,
plc (Registered) ................ 149,000 1,077,350
Smith (David S) Holdings plc .... 26,000 85,025
Smithkline Beecham plc ........... 138,800 1,421,005
Tesco plc ........................ 41,000 333,509
T&N plc .......................... 27,000 113,142
Tomkins plc ...................... 118,000 564,278
United News & Media plc .......... 46,000 523,853
------------
TOTAL UNITED KINGDOM ............ 14,145,649
------------
TOTAL COMMON STOCKS, RIGHTS
AND WARRANTS (86.9%)
(Cost $68,238,485) .............. 64,838,470
------------
PREFERRED STOCKS AND RIGHTS:
AUSTRALIA & NEW ZEALAND (0.1%)
AUSTRALIA (0.1%)
News Corp., Ltd. ................. 8,124 40,190
------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ---------------------------------- ------------ --------------
<S> <C> <C>
LATIN AMERICA (1.3%)
BRAZIL (1.3%)
Banco Bradesco S.A. .............. 10,149,000 $ 100,030
Banco Bradesco S.A.*
(Rights)(expiring 2/3/98) ....... 433,920 --
Banco Itau S.A. .................. 103,000 55,374
Brahma ........................... 99,000 66,529
Brasmotor S.A. ................... 134,000 13,207
CEMIG ............................ 4,206,000 182,742
Cia Cimento Portland Itau ........ 70,000 13,485
Cia Tecidos Norte de Mina ........ 56,000 20,071
Lojas Americanas S.A.
(Registered) * .................. 795,000 3,704
Petrobras S.A. ................... 831,654 194,491
Telec do Rio Janeiro S.A. ........ 290,536 30,198
Telecom de Sao Paulo S.A. ........ 762,706 202,962
Telemig Class B* ................. 284,930 35,998
USIMINAS S.A. .................... 11,450,300 67,714
------------
TOTAL LATIN AMERICA ............. 986,505
------------
OTHER EUROPEAN COUNTRIES (0.3%)
GERMANY (0.3%)
Fielmann AG ...................... 420 9,105
Fresenius AG ..................... 290 52,714
Hornbach Holding AG .............. 770 53,076
SAP AG (Non Voting) .............. 270 87,681
------------
TOTAL OTHER EUROPEAN COUNTRIES 202,576
------------
SCANDINAVIA (0.2%)
FINLAND (0.2%)
Nokia AB, Series A ............... 2,430 172,522
------------
TOTAL PREFERRED STOCKS AND RIGHTS
(1.9%)
(Cost $1,615,090) ............... 1,401,793
------------
TOTAL INVESTMENTS (88.8%)
(Cost $69,853,575) .............. 66,240,263
OTHER ASSETS
LESS LIABILITIES (11.2%) ........ 8,331,706
------------
NET ASSETS (100%)................. $74,571,969
============
</TABLE>
- ------------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may only be resold to qualified institutional
buyers. At December 31, 1997 these securities amounted to $116,028 or
0.16% of net assets.
ss. Illiquid security: is not actively traded.
Glossary:
ADR--American Depositary Receipt
ADS--American Depositary Share
GDR--Global Depositary Receipt
46
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
MARKET SECTOR DIVERSIFICATION
(Unaudited)
As a Percentage of Total Equity Investments
Basic Materials ......................... 2.5 %
Business Services ....................... 6.3
Capital Goods ........................... 8.4
Consumer Cyclicals ...................... 15.2
Consumer Non-Cyclicals .................. 20.4
Credit Sensitive
Banks .................................. 13.3
Financial Services ..................... 3.2
Insurance .............................. 1.9
Real Estate ............................ 2.2
Utility--Electric ...................... 3.0
Utility--Gas ........................... 0.2
Utility--Telephone ..................... 6.7
------
Total Credit Sensitive .................. 30.5
Diversified ............................. 2.2
Energy .................................. 11.0
Technology .............................. 3.5
-------
100.0%
=======
</TABLE>
47
<PAGE>
EQ ADVISORS TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
At December 31, 1997 the Portfolio had outstanding forward currency contracts
to buy/sell foreign currencies as follows: (Note 1)
<TABLE>
<CAPTION>
LOCAL
CONTRACT COST ON U.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION/
(000'S) DATE VALUE (DEPRECIATION)
---------- ------------- ---------- ---------------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
British Pound, expiring 1/2/98 ..... 322 $537,163 $528,893 $(8,270)
FOREIGN CURRENCY SALE CONTRACTS
Belgian Franc, expiring 1/5/98 ...... 2,933 79,285 79,154 131
Canadian Dollar, expiring 1/5/98 .... 77 53,748 53,949 (201)
French Franc, expiring 1/30/98 ...... 1,555 259,480 258,359 1,121
German Mark, expiring 1/6/98......... 273 152,104 151,643 461
Italian Lira, expiring 1/8/98 ....... 427,349 242,481 241,576 905
Netherlands Guilder, expiring
1/6/98.............................. 784 387,699 386,884 815
Norwegian Krone, expiring 1/6/98 .... 622 84,376 84,159 217
Spanish Peseta, expiring 1/7/98 ..... 4,859 31,987 31,895 92
Swedish Krona 1/7/98................. 1,383 174,308 174,135 173
Swiss Franc, expiring 1/6/98......... 443 304,387 303,491 896
---------------
$(3,660)
===============
</TABLE>
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities.... $76,063,422
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities.... 6,150,380
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized appreciation . $ 2,929,973
Aggregate gross unrealized depreciation . (6,618,503)
--------------
Net unrealized (depreciation) ........... $(3,688,530)
==============
Federal income tax cost of investments . $69,928,793
==============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $77,695, which was secured by collateral valued at $81,200.
For the period from May 1, 1997 to December 31, 1997 the Portfolio incurred
approximately $2,279 as brokerage commissions with Fleming Martin/Robert
Fleming Co. and $454 with Jardin Fleming, both affiliated broker/dealers.
See Notes to Financial Statements.
48
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- -------------
<S> <C> <C>
COMMON STOCKS:
BASIC MATERIALS (7.8%)
STEEL (7.8%)
Citation Corp.*................... 169,900 $ 2,760,875
Roanoke Electric Steel Corp. ..... 30,100 801,413
Schnitzer Steel Industries, Inc.,
Class A.......................... 99,800 2,800,637
Universal Stainless & Alloy
Products, Inc.*.................. 213,700 3,098,650
-------------
TOTAL BASIC MATERIALS............ 9,461,575
-------------
BUSINESS SERVICES (10.7%)
PRINTING, PUBLISHING,
BROADCASTING (0.5%)
Gibson Greetings, Inc............. 25,500 557,812
-------------
PROFESSIONAL SERVICES (3.8%)
Standex International Corp. ...... 103,300 3,641,325
Thomas Group, Inc.*............... 75,400 942,500
-------------
4,583,825
-------------
TRUCKING, SHIPPING (6.4%)
Allied Holdings, Inc.* ........... 125,600 2,402,100
M.S. Carriers*.................... 83,500 2,077,062
MTL, Inc.*........................ 91,500 2,338,969
OMI Corp.*........................ 102,400 940,800
-------------
7,758,931
-------------
TOTAL BUSINESS SERVICES.......... 12,900,568
-------------
CAPITAL GOODS (19.7%)
AEROSPACE (1.9%)
Tracor, Inc.*..................... 77,400 2,351,025
-------------
BUILDING & CONSTRUCTION (8.0%)
Avondale Industries, Inc.*........ 130,000 3,859,375
Cavalier Homes, Inc............... 149,100 1,453,725
HomeUSA, Inc.*.................... 170,800 1,409,100
Walter Industries, Inc.*.......... 142,000 2,928,750
-------------
9,650,950
-------------
BUILDING MATERIALS & FOREST
PRODUCTS (2.7%)
Triangle Pacific Corp.*........... 95,800 3,245,225
-------------
ELECTRICAL EQUIPMENT (2.2%)
General Cable Corp................ 75,200 2,721,300
-------------
MACHINERY (4.9%)
Allied Products Corp.............. 163,225 3,917,400
Gradall Industries, Inc.*......... 120,450 1,987,425
-------------
5,904,825
-------------
TOTAL CAPITAL GOODS.............. 23,873,325
-------------
CONSUMER CYCLICALS (12.7%)
AUTO RELATED (1.3%)
Copart, Inc.* .................... 85,200 1,522,950
-------------
FOOD SERVICES, LODGING (0.1%)
Fresh Choice, Inc.* .............. 33,700 109,525
-------------
HOUSEHOLD FURNITURE,
APPLIANCES (4.2%)
Home Products International,
Inc.* ........................... 184,900 2,172,575
<PAGE>
<CAPTION>
NUMBER OF VALUE
SHARES (NOTE 1)
- ---------------------------------- ----------- --------------
<S> <C> <C>
La-Z-Boy, Inc. ................... 40,900 $ 1,763,812
Zag Industries Ltd.*.............. 132,900 1,179,488
-------------
5,115,875
-------------
LEISURE RELATED (1.4%)
SCP Pool Corp.* .................. 89,200 1,717,100
-------------
RETAIL--GENERAL (5.7%)
Ann Taylor Stores Corp.*.......... 117,800 1,575,575
Filene's Basement Corp.*.......... 356,700 1,426,800
Fingerhut Cos., Inc............... 178,950 3,825,056
-------------
6,827,431
-------------
TOTAL CONSUMER CYCLICALS......... 15,292,881
-------------
CONSUMER NON-CYCLICALS (4.0%)
FOODS (0.7%)
J.M. Smucker Co., Class A......... 33,500 791,437
-------------
SOAPS & TOILETRIES (3.3%)
American Safety Razor Co.* ...... 185,000 3,700,000
USA Detergents, Inc............... 37,950 308,344
-------------
4,008,344
-------------
TOTAL CONSUMER
NON-CYCLICALS .................. 4,799,781
-------------
CREDIT SENSITIVE (28.0%)
BANKS (5.0%)
Cullen/Frost Bankers, Inc......... 50 3,034
Quaker City Bancorp, Inc.*........ 118,987 2,602,841
Texas Regional Bancshares, Inc.,
Class A.......................... 113,225 3,453,363
-------------
6,059,238
-------------
FINANCIAL SERVICES (1.0%)
Interstate/Johnson Lane, Inc. .... 5,200 137,800
Long Beach Financial Corp.* ..... 86,200 1,002,075
-------------
1,139,875
-------------
INSURANCE (15.2%)
Commerce Group, Inc............... 118,900 3,879,113
Delphi Financial Group, Inc.,
Class A*......................... 82,418 3,708,810
Nac Re Corp....................... 71,750 3,502,297
National Western Life Insurance
Co., Class A*.................... 15,700 1,593,550
Pico Holdings, Inc.*.............. 303,150 1,951,528
Terra Nova Bermuda Holdings Ltd.,
Class A.......................... 143,500 3,766,875
-------------
18,402,173
-------------
REAL ESTATE (6.8%)
Equity Inns, Inc.................. 169,500 2,500,125
U.S. Restaurant Properties Master
L.P.............................. 66,200 1,584,662
Weeks Corp........................ 72,300 2,313,600
Western Water Co.*................ 170,050 1,849,294
-------------
8,247,681
-------------
TOTAL CREDIT SENSITIVE........... 33,848,967
-------------
49
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER OF VALUE
SHARES (NOTE 1)
- --------------------------------- ----------- -------------
ENERGY (6.7%)
COAL & GAS PIPELINES (1.9%)
KCS Energy, Inc................... 108,900 $ 2,259,675
-------------
OIL--DOMESTIC (3.1%)
Forecenergy, Inc.................. 24,800 649,450
Forest Oil Corp.*................. 192,600 3,177,900
-------------
3,827,350
-------------
OIL--SUPPLIES &
CONSTRUCTION (1.7%)
Tokheim Corp.*.................... 99,200 2,052,200
-------------
TOTAL ENERGY..................... 8,139,225
-------------
TECHNOLOGY (0.8%)
OFFICE EQUIPMENT SERVICES (0.8%)
EA Industries, Inc.*.............. 131,000 908,813
-------------
TOTAL COMMON STOCKS (90.4%)
(Cost $108,785,652)............. 109,225,135
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -------------------------------- ------------- -------------
<S> <C> <C>
SHORT-TERM DEBT SECURITIES:
REPURCHASE AGREEMENT (12.5%)
State Street Bank & Trust 5.75%,
dated 12/31/97, due 1/2/98, to
be repurchased at $15,184,849,
collateralized by $15,240,000
of U.S. Treasury Notes, 6.125%
due 3/31/98, valued at
$15,487,650 (Cost $15,180,000) . $15,180,000 $ 15,180,000
-------------
TOTAL INVESTMENTS (102.9%)
(Cost $123,965,652)............. 124,405,135
OTHER ASSETS
LESS LIABILITIES (-2.9%)........ (3,525,461)
-------------
NET ASSETS (100%)................ $120,879,674
=============
</TABLE>
- ------------
* Non-income producing
50
<PAGE>
EQ ADVISORS TRUST
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
Investment security transactions for the period from May 1, 1997 to December
31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt securities .. $133,392,374
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt securities .. 23,670,203
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized
appreciation........................... $ 5,047,911
Aggregate gross unrealized
depreciation........................... (4,761,380)
-------------
Net unrealized appreciation............. $ 286,531
=============
Federal income tax cost of investments . $124,118,604
=============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $12,071,964, which was secured by collateral valued at $12,318,628.
See Notes to Financial Statements.
51
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS AND WARRANTS:
CHINA & KOREA (2.7%)
KOREA (2.7%)
Korea Electric Power Corp.
(Foreign)*......................... 10,400 $ 96,331
Korea Fund, Inc.* .................. 64,800 429,300
Samsung Electronics Co. (Foreign) . 2,557 57,928
------------
TOTAL CHINA & KOREA ............... 583,559
------------
LATIN AMERICA (21.5%)
ARGENTINA (2.4%)
Nortel Inversora (ADR).............. 1,500 38,250
Telecom Argentina (ADR) ............ 3,202 114,472
Telefonica de Argentina (ADR) ..... 7,590 282,727
YPF S.A., Class D (ADR) ............ 2,674 91,417
------------
526,866
------------
BRAZIL (6.8%)
Brahma (ADR) ....................... 20,150 285,878
Cia Vale do Rio Doce (ADR) ......... 420 8,449
Coteminas .......................... 136,400 48,887
Coteminas (ADR)* + ................. 1,155 19,150
Lightpar ........................... 50,000 15,008
Telebras S.A. ...................... 600,000 61,019
Telebras S.A. (ADR) ................ 7,505 873,863
Unibanco (ADR)* .................... 4,295 138,245
------------
1,450,499
------------
CHILE (0.6%)
CCU S.A. (ADR) ..................... 1,800 52,875
Enersis S.A. (ADR) ................. 1,300 37,700
Santa Isabel S.A. (ADR) ............ 2,200 38,500
------------
129,075
------------
MEXICO (10.8%)
Apasco S.A. ........................ 5,000 34,429
Cemex S.A. CPO* .................... 35,925 162,688
Cifra S.A., Class C ................ 17,239 38,713
Cifra S.A., Class V ................ 6,050 14,877
Femsa S.A., Class B ................ 70,290 565,111
Grupo Financeiro Banamex, Class B* 30,000 89,888
Grupo Financeiro Bancomer, Class B* 103,700 67,418
Grupo Televisa S.A. (GDR)* ......... 10,285 397,901
Kimberly Clark de Mexico,
Class A ........................... 61,940 294,330
Telmex, Class L (ADR) .............. 9,500 532,594
TV Azteca S.A. (ADS)* .............. 5,340 120,484
------------
2,318,433
------------
PERU (0.5%)
Telefonica de Peru S.A. (ADS) ..... 4,430 103,274
------------
VENEZUELA (0.4%)
CANTV (ADR) ........................ 1,897 78,963
------------
TOTAL LATIN AMERICA ............... 4,607,110
------------
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------- ---------- -------------
<S> <C> <C>
NORTH AFRICA AND THE MIDDLE EAST (9.1%)
EGYPT (1.4%)
Commercial International Bank ..... 7,680 $ 154,977
Helwan Portland Cement ............. 2,485 50,028
Madinet Nasar Housing &
Development* ...................... 1,470 95,048
------------
300,053
------------
ISRAEL (2.5%)
Bank Hapoalim Ltd................... 46,000 110,411
Elbit Ltd. ......................... 26,600 101,222
First International Bank of Israel,
Class 5 ........................... 91 66,787
Koor Industries Ltd. (ADR) ......... 7,700 168,919
Teva Pharmaceutical Industries
(ADR) ............................. 1,800 85,162
------------
532,501
------------
TURKEY (5.2%)
Arcelik A.S......................... 465,000 43,752
Ege Biracilik ...................... 1,229,000 111,187
Eregli Demir Celik ................. 1,308,000 201,959
Garanti Bankasi A.S. ............... 5,691,000 281,461
Vestel Elektronik Sanayi Ve Ticaret
A.S. .............................. 192,000 15,749
Yapi Ve Kredi Bankasi A.S. ......... 12,398,000 472,590
------------
1,126,698
------------
TOTAL NORTH AFRICA AND THE MIDDLE
EAST ............................. 1,959,252
------------
OTHER EUROPEAN COUNTRIES (11.1%)
HUNGARY (1.2%)
Gedeon Richter ..................... 59 6,710
Gedeon Richter (Registered)(GDS) ... 1,643 172,515
MOL Magyar Olaj-es Gazipari Rt.
(GDR)(Registered) ................. 3,393 82,789
------------
262,014
------------
POLAND (2.1%)
Agros Holdings S.A., Class C* ..... 6,090 126,119
Bank Inicjatyw Gospodar (GDS)* + .. 3,000 44,043
Bank of Handlowy W Warszawie S.A.* 4,450 56,809
Big Bank Gdanski S.A. (GDR)* ....... 8,350 129,425
Elektrim S.A. ...................... 9,190 88,902
------------
445,298
------------
RUSSIA (7.8%)
LUKoil Holding (ADR) ............... 8,500 784,125
Moscow Energy (Registered).......... 64,300 81,596
Norilsk Nickel* (Registered) ...... 7,300 46,355
Rostelecom* ........................ 22,700 80,585
Surgutneftgaz (ADR)................. 51,930 530,787
Unified Energy System (GDR)* ...... 5,250 147,378
------------
1,670,826
------------
TOTAL OTHER EUROPEAN COUNTRIES ... 2,378,138
------------
52
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ------------ ------------
SOUTHEAST ASIA (11.6%)
HONG KONG (1.7%)
Cheung Kong Ltd. .................. 11,300 $ 74,006
China Light & Power ................ 14,000 77,688
China Resources Enterprises Ltd. ... 7,200 16,074
HSBC Holdings plc (Registered) ..... 2,600 64,086
NG Fung Hong Ltd. .................. 46,000 48,381
Shanghai Industrial Holdings Ltd. .. 7,000 26,016
Sun Hung Kai Properties Ltd. ...... 8,700 60,627
------------
366,878
------------
INDONESIA (2.1%)
Astra International ................ 157,900 40,910
Bank International Indonesia
(Foreign) ......................... 117,700 6,955
Bank Negara Indonesia .............. 130,000 12,409
Bank Negara Indonesia (Foreign) .... 315,700 30,135
Barito Pacific Timber .............. 5,400 1,546
Bimantara Citra .................... 8,587 1,639
Citra Marga Nusaphala Persada ..... 15,200 1,658
Daya Guna Samudera ................. 4,900 3,720
Gudang Garam ....................... 66,300 100,957
HM Sampoerna ....................... 17,500 13,205
Indah Kiat Paper & Pulp Co. ....... 30,300 5,371
Indofood Sukses Makmur ............. 15,200 4,975
London Sumatra Indonesia ........... 2,200 1,250
Matahari Putra Prima ............... 84,000 6,873
Mayora Indah ....................... 192,000 16,582
Tambang Timah ...................... 3,600 3,862
Telekomunikasi, Class B ............ 92,000 48,927
Telekomunikasi (ADR) ............... 13,800 152,662
------------
453,636
------------
MALAYSIA (2.1%)
AMMB Holdings Bhd. ................ 7,400 4,852
Commerce Asset Holding Bhd. ....... 15,000 7,173
Genting Bhd. ....................... 23,800 59,661
Golden Hope Plantations Bhd. ...... 35,000 40,494
IOI Corp., Bhd. .................... 11,000 3,563
Kuala Lumpur Kepong Bhd. ........... 6,000 12,881
Magnum Corp. ....................... 15,000 9,024
Malayan Banking Bhd. ............... 14,400 41,836
Malayan United Industries Bhd. .... 14,000 2,448
Malaysian International Shipping
Bhd. (Foreign) .................... 5,000 7,327
Malaysian Pacific Industries Bhd. .. 3,000 7,212
Malaysian Resources Corp. .......... 20,000 4,628
Nestle (Malaysia) Bhd. ............. 4,000 18,511
New Straits Times Press Bhd. ...... 3,000 3,718
Perusahaan Otomobil Nasional Bhd. . 6,000 5,862
Petronas Gas Bhd. .................. 14,000 31,855
Rashid Hussain Bhd. ................ 5,000 3,882
Resorts World Bhd. ................. 5,000 8,420
RHB Capital Bhd. ................... 23,000 11,117
Rothmans of Pall Mall Bhd. ......... 1,600 12,444
Sime Darby Bhd. .................... 28,000 26,924
Technology Resources Industries
Bhd. .............................. 9,000 5,322
Telekom Malaysia Bhd. .............. 17,000 50,263
Tenaga Nasional Bhd. ............... 20,000 42,679
<PAGE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
- ------------------------------------ ----------- ------------
<S> <C> <C>
United Engineers Ltd. .............. 18,000 $ 14,994
------------
437,090
------------
PHILIPPINES (1.6%)
Ayala Corp. ....................... 150,000 58,333
Ayala Land, Inc., Class B .......... 19,510 7,708
C&P Homes, Inc. .................... 32,660 1,903
Filinvest Land, Inc.* .............. 26,600 1,051
Manila Electronics Co., Class B ... 14,790 48,935
Metro Pacific Corp. ................ 17,400 481
Metropolitan Bank & Trust Co. ..... 1,690 11,371
Petron Corp. ....................... 23,890 1,976
Philippines Long Distance Telephone
Co. ............................... 490 10,647
Philippines Long Distance Telephone
Co. (ADR) ......................... 5,000 112,500
Philippine National Bank* .......... 840 1,846
San Miguel Corp., Class B .......... 35,470 43,352
SM Prime Holdings, Inc. ............ 303,670 44,988
------------
345,091
------------
TAIWAN (2.8%)
Acer, Inc. (GDR)* .................. 8,000 57,000
Asustek Computer, Inc. (GDR)* ...... 5,681 90,754
ROC Taiwan Fund .................... 47,600 386,750
Siliconware Percision Industries
Co. (GDR)* ........................ 5,200 66,690
------------
601,194
------------
THAILAND (1.3%)
Advance Agro PCL (Foreign)*# ....... 700 585
Advanced Information Service PCL
(Foreign)#......................... 16,100 76,906
Bangkok Bank PCL (Foreign) ......... 18,500 46,106
Bangkok Expressway PCL (Foreign)*# . 1,400 778
Bank of Ayudhya Ltd.
(Foreign)(Registered).............. 300 121
Electricity Generating PCL
(Foreign) ......................... 2,600 4,860
Industrial Finance Corp. of
Thailand (Foreign)# ............... 2,600 400
53
Siam Cement Co., Ltd. (Foreign) .... 300 312
Siam Commercial Bank PCL (Foreign)# 42,000 47,975
Siam Commercial Bank PCL*
(Warrants)(expiring 12/31/02) .... 10,500 --
Telecomasia Corp. (Foreign)* ...... 1,400 267
Thai Farmers Bank PCL (Foreign)# .. 49,900 90,680
Thailand Petrochemical PCL
(Foreign)# ........................ 700 67
United Communications Industry PCL
(Foreign)# ........................ 33,200 13,445
------------
282,502
------------
TOTAL SOUTHEAST ASIA .............. 2,486,391
------------
SOUTHERN CENTRAL ASIA (12.9%)
INDIA (8.9%)
Associated Cement Cos., Ltd. ....... 1 35
Great Eastern Shipping Co. (GDR) .. 30,245 162,567
53
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1997
NUMBER VALUE
OF SHARES (NOTE 1)
- ----------------------------------- ------------ ------------
Indian Petrochemicals Corp., Ltd.
(GDS) ............................. 16,870 $ 80,133
ITC Ltd. (GDR) ..................... 27,235 544,700
Mahindra & Mahindra
(GDR)(Registered) ................. 34,320 356,070
Morgan Stanley India Investment
Fund, Inc.*++ ..................... 11,200 93,800
Reliance Industries (GDR) .......... 11,580 99,878
State Bank of India (GDR) .......... 17,260 312,837
Tata Engineering & Locomotive Co.
(GDS)(Registered)* ................ 30,000 251,250
------------
1,901,270
------------
PAKISTAN (4.0%)
Fauji Fertilizer Co., Ltd. ....... 25,000 47,862
Hub Power Co.* ..................... 281,000 365,889
Pakistan Telecommunications Corp.,
Class A ........................... 297,000 224,407
Pakistan Telecommunications Corp.
(GDS) ............................. 2,970 220,020
------------
858,178
------------
TOTAL SOUTHERN CENTRAL ASIA ...... 2,759,448
------------
SUB-SAHARAN AFRICA (6.2%)
SOUTH AFRICA (5.6%)
Amalgamated Banks of South Africa
Group Ltd.......................... 45,688 262,871
Barlow Rand Ltd. ................... 20,800 176,521
Ellerine Holdings Ltd. ............. 29,000 187,116
Morgan Stanley Africa Investment
Fund, Inc.++ ...................... 1,700 19,550
Persetel Holdings Ltd. ............. 13,400 73,519
Rembrandt Group Ltd. ............... 26,094 190,350
Sasol Ltd. ......................... 18,000 188,267
Sasol Ltd. (ADR) ................... 10,000 105,625
------------
1,203,819
------------
ZIMBABWE (0.6%)
Meikles Africa Ltd.................. 134,625 121,163
------------
TOTAL SUB-SAHARAN AFRICA .......... 1,324,982
------------
TOTAL COMMON STOCKS
AND WARRANTS (75.1%)
(Cost $19,020,308) ................ 16,098,880
------------
PREFERRED STOCKS AND RIGHTS:
LATIN AMERICA (7.2%)
BRAZIL (7.2%)
Banco Bradesco S.A.................. 16,700,000 164,599
Banco Bradesco S.A.* (Rights) ..... 714,008 --
Banco Itau S.A. .................... 153,000 82,255
Brahma ............................. 30,000 20,160
CEMIG .............................. 6,334,000 275,199
Cia Vale do Rio Doce ............... 5,000 100,578
CRT, Class A ....................... 488,600 601,967
Lojas Renner S.A. .................. 430,000 13,485
Petrobras S.A. ..................... 950,000 222,167
Telebras S.A. ...................... 449,000 51,214
------------
TOTAL PREFERRED STOCKS
AND RIGHTS (7.2%)
(Cost $1,520,320) ................ 1,531,624
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
- ------------------------- -------------
<S> <C>
TOTAL INVESTMENTS (82.3%)
(Cost $20,540,628) ...... $17,630,504
OTHER ASSETS
LESS LIABILITIES (17.7%) 3,802,127
-------------
NET ASSETS (100%) ........ $21,432,631
=============
</TABLE>
<TABLE>
<CAPTION>
MARKET SECTOR DIVERSIFICATION
(UNAUDITED)
<S> <C> <C>
As a Percentage of Total
Equity Investments
Basic Materials........ 4.5%
Business Services...... 3.9
Capital Goods.......... 2.2
Consumer Cyclicals .... 6.0
Consumer
Non-Cyclicals......... 10.0
Credit Sensitive
Banks................. 14.9
Financial Services ... 6.4
Real Estate........... 1.1
Utility--Electric .... 6.4
Utility--Gas.......... 0.2
Utility--Telephone ... 19.1
------
Total Credit
Sensitive............. 48.1
Diversified............ 8.3
Energy................. 9.7
Technology............. 7.3
-------
100.0%
=======
</TABLE>
- ------------
* Non-income producing
+ Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may only be resold to qualified
institutional buyers. At December 31, 1997 these securities amounted
to $63,193 or 0.30% of net assets.
++ The security is advised by the same Adviser as the Portfolio.
# Securities (totaling $230,836 or 1.08% of net assets) valued at fair
value.
Glossary:
ADR--American Depositary Receipt
ADS--American Depositary Share
CPO--Certificate of Participation
GDR--Global Depositary Receipt
GDS--Global Depositary Share
54
<PAGE>
EQ ADVISORS TRUST
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (Concluded)
December 31, 1997
- -----------------------------------------------------------------------------
Swap Agreements:
The Portfolio had the following Total Return Swap Agreement open at
December 31, 1997:
<TABLE>
<CAPTION>
NOTIONAL UNREALIZED
AMOUNT DESCRIPTION (DEPRECIATION)
- ---------- ---------------------------------------------------------------------------------------- --------------
<S> <C> <C>
$250,000 Agreement with Goldman Sachs International terminating November 30, 1998 the Portfolio $(72,597)
to pay 12 month USD-LIBOR minus 4.00% and to receive the THB SET Index converted into
USD at the mid-market rate on October 30, 1998 +.
</TABLE>
+ Illiquid security: is not actively traded.
Glossary:
LIBOR--London Interbank Offer Rate
THB--Thai Baht
USD--U.S. Dollar
Investment security transactions for the period from August 20, 1997 to
December 31, 1997 were as follows:
<TABLE>
<CAPTION>
<S> <C>
COST OF PURCHASES:
Stocks and long-term corporate debt
securities.................................... $23,775,213
NET PROCEEDS OF SALES AND REDEMPTIONS:
Stocks and long-term corporate debt
securities.................................... 2,825,533
</TABLE>
As of December 31, 1997, the gross unrealized appreciation (depreciation) of
investments based on the aggregate cost of investments for Federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized
appreciation........................... $ 621,487
Aggregate gross unrealized
depreciation........................... (3,804,299)
--------------
Net unrealized (depreciation)........... $(3,182,812)
==============
Federal income tax cost of investments . $20,813,316
==============
</TABLE>
At December 31, 1997 the Portfolio had loaned securities with a total value
of $77,695, which was secured by collateral valued at $84,000.
The Portfolio has a net capital loss carryforward of $70,373 which expires in
the year 2005.
See Notes to Financial Statements.
55
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 1 Organization and Significant Accounting Policies
EQ Advisors Trust (the "Trust") was organized as a Delaware business trust
on October 31, 1996 and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment
company with fifteen diversified series portfolios and three non-diversified
series portfolios (each a "Portfolio"). The diversified Portfolios include
the Merrill Lynch Basic Value Equity Portfolio which commenced operations on
May 1, 1997, MFS Emerging Growth Companies Portfolio which commenced
operations on May 1, 1997, MFS Research Portfolio which commenced operations
on May 1, 1997, EQ/Putnam Balanced Portfolio which commenced operations on
May 1, 1997, EQ/Putnam Growth & Income Value Portfolio which commenced
operations on May 1, 1997, EQ/Putnam International Equity Portfolio which
commenced operations on May 1, 1997, EQ/Putnam Investors Growth Portfolio
which commenced operations on May 1, 1997, T. Rowe Price Equity Income
Portfolio which commenced operations on May 1, 1997, T. Rowe Price
International Stock Portfolio which commenced operations on May 1, 1997,
Warburg Pincus Small Company Value Portfolio which commenced operations on
May 1, 1997, BT Equity 500 Index Portfolio which received initial capital on
December 31, 1997, BT International Equity Index Portfolio which received
initial capital on December 31, 1997, BT Small Company Index Portfolio which
received initial capital on December 31, 1997, JPM Core Bond Portfolio which
received initial capital on December 31, 1997 and the Lazard Large Cap Value
Portfolio which received initial capital on December 31, 1997. The
non-diversified Portfolios include the Merrill Lynch World Strategy Portfolio
which commenced operations on May 1, 1997, Morgan Stanley Emerging Markets
Equity Portfolio which commenced operations on August 20th, 1997 and the
Lazard Small Cap Value Portfolio which received initial capital on December
31, 1997. The Portfolios that received initial capital on December 31, 1997,
had no operations except for the issuance of shares of Class IB Common Stock.
The Trust has the right to issue two classes of shares, Class IA and Class
IB. As of and during the period ended December 31, 1997, the Trust only had
Class IB shares outstanding. The Class IB shares are subject to distribution
fees imposed under a distribution plan (the "Distribution Plan") adopted
pursuant to Rule 12b-1 under the 1940 Act. The Trust's shares are currently
sold only to insurance company separate accounts in connection with variable
life insurance contracts and variable annuity certificates and contracts
issued by The Equitable Life Assurance Society of the United States
("Equitable"), a wholly-owned subsidiary of The Equitable Companies
Incorporated.
The investment objectives and certain investment policies of each
Portfolio are as follows:
Merrill Lynch Basic Value Equity Portfolio (advised by Merrill Lynch Asset
Management, L.P.) -- Capital appreciation and, secondarily, income by
investing in securities, primarily equities, that the Adviser (as defined
below) of the Portfolio believes are undervalued and therefore represent
basic investment value.
Merrill Lynch World Strategy Portfolio (advised by Merrill Lynch Asset
Management, L.P.) -- High total investment return by investing primarily in a
portfolio of equity and fixed income securities, including convertible
securities, of U.S. and foreign issuers.
MFS Emerging Growth Companies Portfolio (advised by Massachusetts
Financial Services Co.) -- Long-term growth of capital. Dividend and interest
income from portfolio securities, if any, is incidental to the Portfolio's
investment objective. The Portfolio invests primarily in common stocks of
emerging growth companies that the Adviser believes are early in their life
cycle but which have the potential to become major enterprises.
MFS Research Portfolio (advised by Massachusetts Financial Services Co.)
- -- Long-term growth of capital and future income, by investing a substantial
portion of its assets in common stock or securities convertible into common
stock of companies believed by the Adviser to possess better than average
prospects for long-term growth.
56
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
EQ/Putnam Balanced Portfolio (advised by Putnam Investment Management,
Inc.) -- Balanced investment composed of a well-diversified portfolio of
stocks and bonds that will produce both capital growth and current income.
EQ/Putnam Growth & Income Value Portfolio (advised by Putnam Investment
Management, Inc.) -- Capital growth. Current income is a secondary objective.
The Portfolio invests primarily in common stocks that offer potential for
capital growth and may, consistent with the Portfolio's investment objective,
invest in common stocks that offer potential for current income.
EQ/Putnam International Equity Portfolio (advised by Putnam Investment
Management, Inc.) -- Capital appreciation. The Portfolio is designed for
investors seeking capital appreciation primarily through a diversified
portfolio of equity securities of companies organized under the laws of a
country other than the United States.
EQ/Putnam Investors Growth Portfolio (advised by Putnam Investment
Management, Inc.) -- Long-term growth of capital and any increased income
that results from this growth, by investing primarily in common stocks that
the Adviser believes afford the best opportunity for long-term capital
growth.
T. Rowe Price Equity Income Portfolio (advised by T. Rowe Price
Associates, Inc.) -- Substantial dividend income and also capital
appreciation by investing primarily in dividend-paying common stocks of
established companies.
T. Rowe Price International Stock Portfolio (advised by Rowe Price-Fleming
International, Inc.) -- Long-term growth of capital through investment
primarily in common stocks of established non-United States companies.
Warburg Pincus Small Company Value Portfolio (advised by Warburg Pincus
Asset Management, Inc.) -- Long-term capital appreciation. The Portfolio
invests primarily in equity securities of small capitalization companies
(i.e. companies having market capitalizations of $1 billion or less at the
time of initial purchase) that the Adviser considers to be relatively
under-valued.
Morgan Stanley Emerging Markets Equity Portfolio (advised by Morgan
Stanley Asset Management, Inc.) -- Long-term capital appreciation. In
pursuing its investment objective, the Adviser focuses on issuers in emerging
market countries in which it believes the economies are developing strongly
and in which the markets are becoming more sophisticated.
BT Equity 500 Index Portfolio (advised by Bankers Trust Co.) -- Replicate
as closely as possible (before the deduction of Portfolio expenses) the total
return of the Standard & Poor's 500 Composite Stock Price Index ("S&P 500")
by allocating the Portfolio's investment among common stocks included in the
S&P 500 in approximately the same proportions as they are represented in the
S&P 500, beginning with the heaviest weighted stocks that make up a larger
portion of the S&P 500's value.
BT International Equity Index Portfolio (advised by Bankers Trust Co.) --
Replicate as closely as possible (before the deduction of Portfolio expenses)
the total return of the Morgan Stanley Capital International Europe,
Australia, Far East Index ("EAFE Index") by investing in a statistically
selected sample of the securities of companies included in the EAFE Index,
although not all companies within a country will be represented in the
Portfolio at the same time.
BT Small Company Index Portfolio (advised by Bankers Trust Co.) --
Replicate as closely as possible (before the deduction of Portfolio expenses)
the total return of the Russell 2000 Small Stock Index ("Russell 2000 Index")
by investing in a statistically selected sample of the 2,000 stocks included
in the Russell 2000 Index.
57
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
JPM Core Bond Portfolio (advised by J.P. Morgan Investment Management
Inc.) -- High total return consistent with moderate risk of capital and
maintenance of liquidity. Under normal circumstances, all of the Portfolio's
assets will, at the time of purchase, consist of investment grade securities
rated BBB or better by Standard & Poor's Rating Service or Baa or better by
Moody's Investors Service, Inc. or unrated securities of comparable quality.
Lazard Large Cap Value Portfolio (advised by Lazard Asset Management) --
Capital appreciation by investing primarily in equity securities of companies
with relatively large market capitalizations (i.e., companies having market
capitalizations of at least $1 billion at the time of initial purchase) that
appear to the Adviser to be inexpensively priced relative to the return on
total capital or equity.
Lazard Small Cap Value Portfolio (advised by Lazard Asset Management) --
Capital appreciation by investing primarily in equity securities of United
States companies with small market capitalizations (i.e., companies in the
range of companies represented in the Russell 2000 Index) that the Adviser
considers inexpensively priced relating to the return on total capital or
equity.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
The following is a summary of the significant accounting policies of the
Trust:
Stocks listed on national securities exchanges and certain
over-the-counter issues traded on the NASDAQ national market system are
valued at the last sale price on the primary exchange for such securities or,
if there is no sale, at the latest available bid price. Other unlisted stocks
are valued at their last sale price or, if no reported sale occurs during the
day, at a bid price estimated by a broker.
Convertible preferred stocks listed on national securities exchanges are
valued as of their last sale price or, if there is no sale, at the latest
available bid price.
Convertible bonds and unlisted convertible preferred stocks are valued at
bid prices obtained from one or more of the major dealers in such securities.
Where there is a discrepancy between dealers, values may be adjusted based on
recent premium spreads to the underlying common stocks.
Mortgage backed and asset backed securities are valued at prices obtained
from a bond pricing service where available, or at a bid price obtained from
one or more of the major dealers in such securities. If a quoted price is
unavailable, an equivalent yield or yield spread quote will be obtained from
a broker and converted to a price.
Options, including options on futures that are traded on exchanges, are
valued at their last sale price, and if the last sale price is not available
then the previous day's sale price is used. However, if the bid price is
higher or the asked price is lower than the previous last sale price, the
higher bid or lower asked price may be used. Options not traded on an
exchange or actively traded are valued at fair value as determined in good
faith by the Board of Trustees.
Long-term corporate bonds are valued at a price obtained from a bond
pricing service of a major dealer in bonds when such prices are available;
however, when such prices are not available, such bonds are valued at a bid
price estimated by a broker.
U.S. Treasury securities and other obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, are valued at
representative quoted bid prices.
Foreign securities not traded directly, or in American Depositary Receipt
(ADR) or similar form in the United States, are valued at representative
quoted bid prices from the primary exchange in the currency of the country of
origin.
58
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
Short-term debt securities that mature in 60 days or less are valued at
amortized cost, which approximates market value. Short-term debt securities
that mature in more than 60 days are valued at representative quoted prices.
Futures contracts are valued at their last sale price or, if there is no
sale, at the latest available bid price.
Forward foreign exchange contracts are valued by interpolating between the
forward and spot currency rates as quoted by a pricing service as of a
designated hour on the valuation date.
Other securities and assets for which market quotations are not readily
available or for which valuation can not be provided, are valued at fair
value as determined in good faith by the Board of Trustees.
Securities transactions are recorded on the trade date net of brokerage
fees, commissions, and transfer fees.
Interest income (including amortization of premium and discount on
long-term securities using the effective yield method) is accrued daily.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are computed on the
basis of the identified cost of the investments sold.
Expenses attributable to a single Portfolio are charged to that Portfolio.
Expenses of the Trust not attributable to a single Portfolio are charged to
each Portfolio in proportion to the average net assets of each Portfolio.
Equitable pays substantially all operating expenses on behalf of the Trust
for which Equitable is then reimbursed by the Trust.
The books and records of the Trust are kept in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the bid price last
quoted by a composite list of major U.S. banks at the following dates:
(i) market value of investment securities, other assets and liabilities
- -at the valuation date.
(ii) purchase and sales of investment securities, income and expenses -at
the date of such transactions.
The Portfolios do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
on securities.
Net currency gains or losses realized and unrealized as a result of
differences between interest or dividends, withholding taxes, forward foreign
currency exchange contracts and foreign cash recorded on the Portfolio's
books and the U.S. dollar equivalent amount actually received or paid are
presented under foreign currency transactions in the realized and unrealized
gains and losses section of the Statements of Operations.
The Trust intends to comply with the requirements of the Internal Revenue
Code of 1986, as amended (the "Code") applicable to regulated investment
companies and to distribute substantially all of its net investment income
and net realized capital gains to shareholders of each Portfolio. Therefore,
no Federal income tax provision is required. Dividends from net investment
income are declared and distributed annually for all Portfolios. Dividends
from net realized short-term and long-term capital gains are declared and
distributed at least annually to the shareholders of the Portfolios to which
such gains are attributable. All dividends are reinvested in additional full
and fractional shares of the related Portfolios. All dividends are
distributed on a tax basis and, as such, the amounts may differ from
financial statement investment income and realized capital gains. Those
differences are primarily due to differing book and
59
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
tax treatments for deferred organization costs, foreign currency
transactions, post-October losses, losses due to wash sales transactions,
mark-to-market of forward contracts, mark-to-market of passive foreign
investment companies and straddled transactions. In addition, each Portfolio
will comply with the investment diversification requirements of Subchapter L
of the Code applicable to segregated asset accounts.
Net capital and net currency losses incurred after October 31 and within
the taxable year are deemed to arise on the first business day of the
Portfolio's next taxable year. For the period from November 1, 1997 to
December 31, 1997 the following Portfolios incurred and elected to defer
until January 1, 1998 for U.S. Federal income tax purposes net capital and
net currency losses as stated below:
<TABLE>
<CAPTION>
NET NET
CAPITAL CURRENCY
LOSSES LOSSES
----------- ----------
<S> <C> <C>
Merrill Lynch Basic Value Equity Portfolio ...... $ 22,052 $ --
Merrill Lynch World Strategy Portfolio ........... 358,116 --
MFS Emerging Growth Companies Portfolio ......... 655,690 1,027
MFS Research Portfolio ........................... 583,491 18,652
EQ/Putnam Balanced Portfolio ..................... 11,458 --
EQ/Putnam Growth & Income Value Portfolio ....... 248,858 --
EQ/Putnam International Equity Portfolio ........ 58,646 --
EQ/Putnam Investors Growth Portfolio ............. 221,088 --
T. Rowe Price Equity Income Portfolio ............ -- 1,734
T. Rowe Price International Stock Portfolio ..... 172,782 34,852
Warburg Pincus Small Company Value Portfolio .... 1,313,006 --
Morgan Stanley Emerging Markets Equity Portfolio 35,416 5,249
</TABLE>
Costs incurred by the Trust in connection with its organization have been
allocated equally to and capitalized by each of the initial twelve Portfolios
and are deferred and amortized on a straight line basis over a 60-month
period from the date the Portfolios commenced operations. On December 31,
1997 an additional $188,040 in organizational costs was capitalized and
allocated evenly among the BT Equity 500 Index Portfolio, BT International
Equity Index Portfolio, BT Small Company Index Portfolio, JPM Core Bond
Portfolio, Lazard Large Cap Value Portfolio and the Lazard Small Cap Value
Portfolio in connection with their organization. Each of these Portfolios
commenced operations on January 2, 1998.
For all Portfolios, the Board of Trustees has approved the lending of
portfolio securities, through its custodian bank Chase Manhattan Bank, N.A.
("Chase") acting as lending agent, to certain approved broker-dealers in
exchange for negotiated lenders' fees. By lending investment securities, a
Portfolio attempts to increase its net investment income through the receipt
of interest on the loan. Any gain or loss in the market price of the
securities loaned that might occur and any interest earned or dividends
declared during the term of the loan would be for the account of the
Portfolio. Risks of delay in recovery of the securities or even loss of
rights in the collateral may occur should the borrower of the securities fail
financially. Risks may also arise to the extent that the value of the
securities loaned increases above the value of the collateral received. Any
such loan of portfolio securities will be continuously secured by collateral
in cash or high grade debt securities at least equal at all times to the
market value of the security loaned. Chase will indemnify each Portfolio from
any loss resulting from a borrower's failure to return a loaned security when
due. Chase invests the cash collateral and retains a portion of the interest
earned. The net amount of interest earned, after the interest rebate, is
included in the Statements of Operations as securities lending income. At
December 31, 1997, the cash collateral received by each Portfolio for
securities loaned was invested by Chase in repurchase agreements in which
each Portfolio has a pro rata interest equal to the amount of cash collateral
contributed.
60
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
Repurchase Agreements:
Each Portfolio, except for the Merrill Lynch Basic Value Equity Portfolio
and the Merrill Lynch World Strategy Portfolio, may enter into repurchase
agreements with qualified and Board of Trustees approved banks,
broker-dealers or other financial institutions as a means of earning a fixed
rate of return on its cash reserves for periods as short as overnight. A
repurchase agreement is a contract pursuant to which a Portfolio, against
receipt of securities of at least equal value including accrued interest,
agrees to advance a specified sum to the financial institution which agrees
to reacquire the securities at a mutually agreed upon time (usually one day)
and price. Each repurchase agreement entered into by a Portfolio will provide
that the value of the collateral underlying the repurchase agreement will
always be at least equal to the repurchase price, including any accrued
interest. A Portfolio's right to liquidate such securities in the event of a
default by the seller could involve certain costs, losses or delays and, to
the extent that proceeds from any sale upon a default of the obligation to
repurchase are less than the repurchase price, the Portfolio could suffer a
loss.
Options Written:
All Portfolios (except for the MFS Research Portfolio and the Lazard Small
Cap Value Portfolio) may write (sell) covered options as a hedge to provide
protection against adverse movements in the price of securities in the
Portfolio or to enhance investment performance. Each of the Portfolios
(except for the MFS Research Portfolio, BT Equity 500 Index Portfolio, BT
Small Company Index Portfolio, Lazard Large Cap Value Portfolio and Lazard
Small Cap Value Portfolio) may purchase and sell exchange traded options on
foreign currencies. When a Portfolio writes an option, an amount equal to the
premium received by the Portfolio is recorded as a liability and is
subsequently adjusted on a daily basis to the current market price of the
option written. Premiums received from writing options which expire
unexercised are recognized as gains on the expiration date. Premiums received
from writing options which are exercised or are canceled in closing purchase
transactions are offset against the cost of any securities purchased or added
to the proceeds or netted against the amount paid on the transaction to
determine the realized gain or loss. In writing options, a Portfolio must
assume that the option may be exercised at any time prior to the expiration
of its obligation as a writer, and that in such circumstances the net
proceeds of the sale or cost of purchase of the underlying securities and
currencies pursuant to the call or put option may be substantially below or
above the prevailing market price. A Portfolio also has the additional risk
of not being able to enter into a closing purchase transaction if a liquid
secondary market does not exist and bears the risk of unfavorable changes in
the price of the financial instruments underlying the options.
Futures Contracts, Forward Commitments and Forward Foreign Currency Exchange
Contracts:
The futures contracts used by the Portfolios are agreements to buy or sell
a financial instrument for a set price in the future. Each Portfolio (with
the exception of the MFS Research Portfolio, the Lazard Large Cap Value
Portfolio and the Lazard Small Cap Value Portfolio) may buy or sell futures
contracts for the purpose of protecting its portfolio securities against
future changes in interest rates which might adversely affect the value of
the Portfolio's securities or the price of securities that it intends to
purchase at a later date. Initial margin deposits are made upon entering into
futures contracts and can be in cash, certain money market instruments,
treasury securities or other liquid, high grade debt. During the period the
futures contracts are open, changes in the market price of the contract are
recognized as unrealized gains or losses by "marking-to-market" at the end of
each trading day. Variation margin payments on futures contracts are received
or made, depending upon whether unrealized gains or losses are incurred. When
the contract is closed, the Portfolio records a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transactions and the Portfolio's basis in the contract. Should interest rates
move unexpectedly, the Portfolio may not achieve the anticipated benefits of
the futures contracts and may incur a loss. The use of futures contracts
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
61
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
Each Portfolio (except the Warburg Pincus Small Company Value Portfolio)
may make contracts to purchase securities for a fixed price at a future date
beyond customary settlement time ("forward commitments") if it holds, and
maintains until the settlement date in a segregated account, cash or liquid
securities in an amount sufficent to meet the purchase price, or if it enters
into offsetting contracts for the forward sale of other securities it owns.
Forward commitments may be considered securities in themselves and involve a
risk of loss if the value of the security to be purchased declines prior to
the settlement date, which risk is in addition to the risk of decline in
value of the Portfolio's other assets. Where such purchases are made through
dealers, a Portfolio relies on the dealer to consummate the sale. The
dealer's failure to do so may result in the loss to a Portfolio of an
advantageous yield or price.
Each of the Portfolios (except the BT Equity 500 Index Portfolio, BT Small
Company Index Portfolio and Lazard Small Cap Value Portfolio) may purchase
foreign currency on a spot (or cash) basis. In addition, each of the
Portfolios (except the MFS Research Portfolio, BT Equity 500 Index Portfolio,
BT Small Company Index Portfolio, Lazard Large Cap Value Portfolio and Lazard
Small Cap Value Portfolio) may enter into contracts to purchase or sell
foreign currencies at a future date ("forward contracts"). A forward foreign
currency exchange contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. The gain or loss
arising from the difference between the original contracts and the closing of
such contracts is included in realized gains or losses from foreign currency
transactions. The Advisers, as defined below, may engage in these forward
contracts to protect against uncertainty in the level of future exchange
rates in connection with the purchase and sale of portfolio securities
("transaction hedging") and to protect the value of specific portfolio
positions ("position hedging").
Swaps:
The Morgan Stanley Emerging Markets Equity Portfolio, JPM Core Bond
Portfolio and BT International Equity Index Portfolio may each invest in swap
contracts, which are derivatives in the form of a contract or other similar
instrument which is an agreement to exchange the return generated by one
instrument for the return generated by another instrument. The payment
streams are calculated by reference to a specified index and agreed upon
notional amount. A Portfolio will usually enter into swaps on a net basis,
i.e., the two return streams are netted out in a cash settlement on the
payment date or dates specified in the instrument, with the Portfolio
receiving or paying, as the case may be, only the net amount of the two
returns. A Portfolio's obligations under a swap agreement will be accrued
daily (offset against any amounts owing to the Portfolio) and any accrued but
unpaid net amounts owed to a swap counterparty will be covered by the
maintenance of a segregated account consisting of cash, or other liquid
obligations. A Portfolio will not enter into any swap agreement unless the
counterparty meets the rating requirements set forth in guidelines
established by the Trust's Board of Trustees.
Limitations on Market and Credit Risk:
Written options, futures contracts, forward commitments, forward foreign
currency exchange contracts and swaps involve elements of both market and
credit risk in excess of the amounts reflected in the Statements of Assets
and Liabilities. The contract amounts of these covered written options,
futures contracts, forward commitments, forward foreign currency exchange
contracts and swaps reflect the extent of the Portfolio's exposure to
off-balance sheet risk. The Portfolio bears the market risk which arises from
any changes in security values. The credit risk for futures contracts is
limited to failure of the exchange or board of trade which acts as the
counterparty to the Portfolio's futures transactions. Forward commitments,
forward foreign currency exchange contracts and swaps are done directly with
the counterparty and not through an exchange and can be terminated only by
agreement of both parties to the forward commitments or forward foreign
currency exchange contracts. With respect to such transactions there is no
daily margin settlement and the Portfolio is exposed to the risk of default
by the counterparty.
62
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Continued)
December 31, 1997
Note 2 Management of the Trust
The Trust has entered into an investment management agreement (the
"Management Agreement") with EQ Financial Consultants, Inc. (the "Manager"),
an indirect wholly-owned subsidiary of Equitable. The Management Agreement
states that the Manager will (i) have overall supervisory responsibility for
the general management and investment of each Portfolio's assets; (ii) select
and contract with investment advisers ("Advisers") to manage the investment
operations and composition of each and every Portfolio; (iii) monitor the
Advisers' investment programs and results; (iv) oversee compliance by the
Trust with various federal and state statutes; and (v) carry out the
directives of the Board of Trustees. For its services under the Management
Agreement, the Manager will receive an annual fee as a percentage of average
daily net assets, for each of the Portfolios, calculated daily and payable
quarterly as follows: The fee is calculated based on an annual rate of 0.25%
of average daily net assets of the BT Equity 500 Index Portfolio and the BT
Small Company Index Portfolio; 0.35% of average daily net assets of the BT
International Equity Index Portfolio; 0.45% of average daily net assets of
the JPM Core Bond Portfolio; 0.55% of average daily net assets of the Merrill
Lynch Basic Value Equity Portfolio, the MFS Emerging Growth Companies
Portfolio, the MFS Research Portfolio, the EQ/Putnam Balanced Portfolio, the
EQ/Putnam Growth & Income Value Portfolio, the EQ/Putnam Investors Growth
Portfolio, the T. Rowe Price Equity Income Portfolio and the Lazard Large Cap
Value Portfolio; 0.65% of average daily net assets of the Warburg Pincus
Small Company Value Portfolio; 0.70% of average daily net assets of the
Merrill Lynch World Strategy Portfolio and the EQ/Putnam International Equity
Portfolio; 0.75% of average daily net assets of the T. Rowe Price
International Stock Portfolio; 0.80% of average daily net assets of the
Lazard Small Cap Value Portfolio; and 1.15% of average daily net assets of
the Morgan Stanley Emerging Markets Equity Portfolio.
On behalf of the Trust, the Manager has entered into investment advisory
agreements ("Advisory Agreements") with each of the Advisers. Each of the
Advisory Agreements obligates the Advisers for the respective Portfolios to:
(i) continuously furnish investment programs for the Portfolios; (ii) place
all orders for the purchase and sale of investments for the Portfolios with
brokers or dealers selected by the Manager or the respective Advisers; and
(iii) perform certain limited related administrative functions in connection
therewith. The Manager pays the expenses of providing investment advisory
services to the Portfolios, including the fees of the Advisers of each
Portfolio.
Note 3 Administrative Fees
The Trust has entered into an administrative agreement with Chase Global
Funds Services Company ("Chase Global"), a subsidiary of The Chase Manhattan
Bank, N.A., pursuant to which Chase Global provides certain fund accounting,
compliance and administrative services to the Trust. For such services, Chase
Global receives compensation at the annual rate of 0.0525 of 1% of the total
Trust assets, plus $25,000 for each Portfolio, until the total Trust assets
reach $2.0 billion, and when the total Trust assets exceed $2.0 billion Chase
Global receives: 0.0425 of 1% of the next $500 million of the total Trust
assets; 0.035 of 1% of the next $2.0 billion of the total Trust assets; 0.025
of 1% of the next $1.0 billion of the total Trust assets; 0.015 of 1% of the
next $2.5 billion of the total Trust assets; and 0.01 of 1% of the total
Trust assets in excess of $8.0 billion; except that the annual fee payable to
Chase Global with respect to any Portfolio which commences operation after
July 1, 1997 and whose assets do not exceed $200 million shall be computed at
the rate of 0.0525 of 1% of the Portfolio's total assets plus $25,000. Chase
Global agreed to waive all fees under this agreement, excluding out-of-pocket
expenses, for the period from May 1, 1997, to October 31, 1997. Certain
officers of the Trust are also officers of Chase Global.
Note 4 Custody Fees
The Trust has entered into a Custody Agreement with Chase. The Custody
Agreement provides for an annual fee based on the amount of assets under
custody plus transaction charges. Chase serves as custodian of the Trust's
portfolio securities and other assets. Under the terms of the custody
agreement between the Trust and Chase, Chase maintains and deposits in
separate accounts, cash, securities and
63
<PAGE>
EQ ADVISORS TRUST
NOTES TO FINANCIAL STATEMENTS--(Concluded)
December 31, 1997
other assets of the Portfolios. Chase is also required, upon the order of the
Trust, to deliver securities held by Chase, and to make payments for
securities purchased by the Trust. Chase has also entered into sub-custodian
agreements with a number of foreign banks and clearing agencies, pursuant to
which portfolio securities purchased outside the U.S. are maintained in the
custody of these entities.
Note 5 Distribution Plan
The Trust has entered into distribution agreements with the Manager and
Equitable Distributors, Inc. ("EDI"), an indirect wholly-owned subsidiary of
Equitable (collectively, the "Distributors"), pursuant to which the
Distributors will serve as the principal underwriters of the Class IA and
Class IB shares of the Trust. Class IB shares are subject to distribution
fees imposed pursuant to a distribution plan ("Distribution Plan") adopted
pursuant to Rule 12b-1 under the 1940 Act. The Distribution Plan provides
that each Distributor will be entiled to receive a maximum distribution fee
at the annual rate of 0.50% of the average net assets attributable to the
Trust's Class IB shares. The distribution agreements, however, limit payments
for services provided under the Distribution Plan to an annual rate of 0.25%
of the average net assets attributable to the Trust's Class IB shares. The
Trust's Class IA shares will not be subject to such fees.
Note 6 Expense Limitation
In the interest of limiting expenses of the Portfolios, the Manager has
entered into an expense limitation agreement with the Trust, with respect to
each Portfolio ("Expense Limitation Agreement"), pursuant to which the
Manager has agreed to waive or limit its fees and to assume other expenses so
that the total annual operating expenses of each Portfolio are limited to:
0.55% of the BT Equity 500 Index Portfolio's average daily net assets; 0.60%
of the BT Small Company Index Portfolio's average daily net assets; 0.80% of
the respective average daily net assets of the BT International Equity Index
and JPM Core Bond Portfolios; 0.85% of the respective average daily net
assets of the Merrill Lynch Basic Value Equity, MFS Emerging Growth
Companies, MFS Research, EQ/Putnam Growth & Income Value, EQ/Putnam Investors
Growth and T. Rowe Price Equity Income Portfolios; 0.90% of the respective
average daily net assets of the EQ/Putnam Balanced and Lazard Large Cap Value
Portfolios; 1.00% of the Warburg Pincus Small Company Value Portfolio's
average daily net assets; 1.20% of the respective average daily net assets of
the Merrill Lynch World Strategy, EQ/Putnam International Equity, T. Rowe
Price International Stock and Lazard Small Cap Value Portfolios; and 1.75% of
the Morgan Stanley Emerging Markets Equity Portfolio's average daily net
assets.
Each Portfolio may at a later date reimburse to the Manager the management
fees waived or other expenses assumed and paid for by the Manager pursuant to
the Expense Limitation Agreement within the prior two fiscal years provided
such Portfolio has reached a sufficient asset size to permit such
reimbursement to be made without causing the total annual expense ratio of
each Portfolio to exceed the percentage limits mentioned above. Consequently,
no reimbursement by a Portfolio will be made unless: (i) the Portfolio's
assets exceed $100 million; (ii) the Portfolio's total annual expense ratio
is less than the respective percentages stated above; and (iii) the payment
of such reimbursement has been approved by the Trust's Board of Trustees on a
quarterly basis. At December 31, 1997, under the Expense Limitation
Agreement, the total amount reimbursable to the Manager, which includes
waivers of investment management fees and reimbursements from the Manager,
was $2,574,711.
Note 7 Trustees Deferred Compensation Plan
A deferred compensation plan for the benefit of the unaffiliated Trustees
has been adopted by the Trust. Under the deferred compensation plan, each
Trustee may defer payment of all or part of the fees payable for such
Trustee's services. Each Trustee may defer payment of such fees until their
retirement as a Trustee or until the earlier attainment of a specified age.
Fees deferred under the deferred compensation plan, together with accrued
interest thereon, will be disbursed to a participating Trustee in monthly
installments over a five to twenty year period elected by such Trustee.
64
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
SELECTED DATA FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE PERIOD
MERRILL LYNCH BASIC VALUE EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.06
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 1.64
----------
Total from investment operations ...................................................... 1.70
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.06)
Distributions from realized gains...................................................... (0.05)
Distributions in excess of realized gains ............................................. (0.01)
----------
Total dividends and distributions ..................................................... (0.12)
----------
Net asset value, end of period ......................................................... $ 11.58
==========
Total return (b)........................................................................ 16.99%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)....................................................... $49,495
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.89%
Ratio of net investment income to average net assets after waivers (a) ................. 1.91%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 0.87%
Portfolio turnover rate................................................................. 25%
Average commission rate paid............................................................ $0.0566
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.03
</TABLE>
MERRILL LYNCH WORLD STRATEGY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.08
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 0.39
----------
Total from investment operations....................................................... 0.47
----------
LESS DISTRIBUTIONS:
Dividends from net investment income .................................................. (0.05)
Dividends in excess of net investment income........................................... --
Distributions in excess of realized gains ............................................. (0.11)
----------
Total dividends and distributions ..................................................... (0.16)
----------
Net asset value, end of period ......................................................... $ 10.31
==========
Total return (b)........................................................................ 4.70%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)....................................................... $18,210
Ratio of expenses to average net assets after waivers (a)............................... 1.20%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 3.05%
Ratio of net investment income to average net assets after waivers (a) ................. 1.89%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 0.04%
Portfolio turnover rate................................................................. 58%
Average commission rate paid............................................................ $0.0299
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.08
</TABLE>
65
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
MFS EMERGING GROWTH COMPANIES PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 2.21
----------
Total from investment operations....................................................... 2.23
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.02)
Dividends in excess of net investment income........................................... --
Distributions from realized gains ..................................................... (0.18)
Distributions in excess of realized gains ............................................. (0.11)
----------
Total dividends and distributions ..................................................... (0.31)
----------
Net asset value, end of period ......................................................... $ 11.92
==========
Total return (b)........................................................................ 22.42%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $99,317
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.82%
Ratio of net investment income to average net assets after waivers (a) ................. 0.61%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.36)%
Portfolio turnover rate................................................................. 116%
Average commission rate paid............................................................ $0.0422
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.04
</TABLE>
MFS RESEARCH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 1.58
----------
Total from investment operations ...................................................... 1.60
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.02)
Dividends in excess of net investment income........................................... --
Distributions from realized gains...................................................... (0.01)
Distributions in excess of realized gains ............................................. (0.09)
----------
Total dividends and distributions ..................................................... (0.12)
----------
Net asset value, end of period ......................................................... $ 11.48
==========
Total return (b)........................................................................ 16.07%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $114,754
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.78%
Ratio of net investment income to average net assets after waivers (a) ................. 0.65%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.28)%
Portfolio turnover rate................................................................. 51%
Average commission rate paid............................................................ $ 0.0471
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.03
</TABLE>
66
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
EQ/PUTNAM BALANCED PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.14
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 1.30
----------
Total from investment operations ...................................................... 1.44
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.13)
Dividends in excess of net investment income .......................................... (0.01)
Distributions from realized gains...................................................... (0.09)
----------
Total dividends and distributions ..................................................... (0.23)
----------
Net asset value, end of period ......................................................... $ 11.21
==========
Total return (b)........................................................................ 14.38%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $25,854
Ratio of expenses to average net assets after waivers (a)............................... 0.90%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 2.55%
Ratio of net investment income to average net assets after waivers (a) ................. 3.19%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 1.54%
Portfolio turnover rate................................................................. 117%
Average commission rate paid............................................................ $0.0346
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.07
</TABLE>
EQ/PUTNAM GROWTH & INCOME VALUE PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.06
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 1.56
----------
Total from investment operations ...................................................... 1.62
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.06)
Dividends in excess of net investment income........................................... --
Distributions from realized gains...................................................... (0.01)
Distributions in excess of realized gains ............................................. (0.03)
----------
Total dividends and distributions ..................................................... (0.10)
----------
Net asset value, end of period ......................................................... $ 11.52
==========
Total return (b)........................................................................ 16.23%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $150,260
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.75%
Ratio of net investment income to average net assets after waivers (a) ................. 1.67%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 0.77%
Portfolio turnover rate................................................................. 61%
Average commission rate paid............................................................ $ 0.0376
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.03
</TABLE>
67
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
EQ/PUTNAM INTERNATIONAL EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.03
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 0.93
----------
Total from investment operations ...................................................... 0.96
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.02)
Distributions from realized gains...................................................... (0.01)
Distributions in excess of realized gains ............................................. (0.04)
----------
Total dividends and distributions ..................................................... (0.07)
----------
Net asset value, end of period ......................................................... $ 10.89
==========
Total return (b)........................................................................ 9.58%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $55,178
Ratio of expenses to average net assets after waivers (a)............................... 1.20%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 2.53%
Ratio of net investment income to average net assets after waivers (a) ................. 0.74%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.59)%
Portfolio turnover rate................................................................. 43%
Average commission rate paid............................................................ $0.0153
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.05
</TABLE>
EQ/PUTNAM INVESTORS GROWTH PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 2.45
----------
Total from investment operations ...................................................... 2.47
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.03)
Distributions from realized gains...................................................... (0.04)
Distributions in excess of realized gains ............................................. (0.07)
----------
Total dividends and distributions ..................................................... (0.14)
----------
Net asset value, end of period ......................................................... $ 12.33
==========
Total return (b)........................................................................ 24.70%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $39,695
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 2.13%
Ratio of net investment income to average net assets after waivers (a) ................. 0.58%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.70)%
Portfolio turnover rate................................................................. 47%
Average commission rate paid............................................................ $0.0338
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.05
</TABLE>
68
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
T. ROWE PRICE EQUITY INCOME PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.10
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 2.11
----------
Total from investment operations ...................................................... 2.21
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.09)
Distributions from realized gains...................................................... (0.04)
----------
Total dividends and distributions ..................................................... (0.13)
----------
Net asset value, end of period ......................................................... $ 12.08
==========
Total return (b)........................................................................ 22.11%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $99,947
Ratio of expenses to average net assets after waivers (a)............................... 0.85%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.74%
Ratio of net investment income to average net assets after waivers (a) ................. 2.49%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 1.60%
Portfolio turnover rate................................................................. 9%
Average commission rate paid............................................................ $0.0293
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.03
</TABLE>
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... (0.17)
----------
Total from investment operations ...................................................... (0.15)
----------
LESS DISTRIBUTIONS:
Dividends in excess of net investment income........................................... --
----------
Net asset value, end of period ......................................................... $ 9.85
==========
Total return (b)........................................................................ (1.49)%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $69,572
Ratio of expenses to average net assets after waivers (a)............................... 1.20%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 2.56%
Ratio of net investment income to average net assets after waivers (a) ................. 0.45%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.91)%
Portfolio turnover rate................................................................. 17%
Average commission rate paid............................................................ $0.0034
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.05
</TABLE>
69
<PAGE>
EQ ADVISORS TRUST
FINANCIAL HIGHLIGHTS--(Continued)
For the period from May 1, 1997** to December 31, 1997
(Unless otherwise noted)
WARBURG PINCUS SMALL COMPANY VALUE PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.01
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... 1.90
----------
Total from investment operations ...................................................... 1.91
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.01)
Dividends in excess of net investment income........................................... --
Distributions in excess of realized gains ............................................. (0.05)
----------
Total dividends and distributions ..................................................... (0.06)
----------
Net asset value, end of period ......................................................... $ 11.85
==========
Total return (b)........................................................................ 19.15%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $120,880
Ratio of expenses to average net assets after waivers (a)............................... 1.00%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 1.70%
Ratio of net investment income to average net assets after waivers (a) ................. 0.26%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ (0.44)%
Portfolio turnover rate................................................................. 44%
Average commission rate paid............................................................ $ 0.0545
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.03
For the period from August 20, 1997** to December 31, 1997
</TABLE>
MORGAN STANLEY EMERGING MARKETS EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
CLASS IB
----------
<S> <C>
Net asset value, beginning of period.................................................... $ 10.00
----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................................................. 0.04
Net realized and unrealized gain (loss) on investments and foreign currency
transactions.......................................................................... (2.06)
----------
Total from investment operations ...................................................... (2.02)
----------
LESS DISTRIBUTIONS:
Dividends from net investment income................................................... (0.02)
----------
Net asset value, end of period ......................................................... $ 7.96
==========
Total return (b)........................................................................ (20.16)%
==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ...................................................... $21,433
Ratio of expenses to average net assets after waivers (a)............................... 1.75%
Ratio of expenses to average net assets before waivers (Note 6) (a)..................... 2.61%
Ratio of net investment income to average net assets after waivers (a) ................. 1.96%
Ratio of net investment income to average net assets before waivers (Note 6)(a) ........ 1.10%
Portfolio turnover rate................................................................. 25%
Average commission rate paid............................................................ $0.0011
Effect of voluntary expense limitation during the period: (Note 6)
Per share benefit to net investment income............................................ $ 0.02
</TABLE>
- ------------
** Commencement of Operations
(a) Annualized
(b) Total return is not annualized.
70
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees
and Shareholders of
EQ Advisors Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of each of the
portfolios constituting EQ Advisors Trust (the "Fund") at December 31, 1997,
and the results of each of their operations, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at December 31, 1997 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provides a reasonable
basis for the opinion expressed above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
February 23, 1998
71
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For the fiscal period ended December 31, 1997, the percentage of dividends
paid that qualify for the 70% dividend received deduction for corporate
shareholders for the Merrill Lynch Basic Value Equity Portfolio, the Merrill
Lynch World Strategy Portfolio, the MFS Emerging Growth Companies Portfolio,
the MFS Research Portfolio, the EQ/Putnam Balanced Portfolio, the EQ/Putnam
Growth & Income Value Portfolio, the EQ/Putnam Investors Growth Portfolio,
the T. Rowe Price Equity Income Portfolio, the Warburg Pincus Small Company
Value Portfolio and the Morgan Stanley Emerging Markets Equity Portfolio were
30.39%, 8.79%, 1.52%, 23.38%, 20.79%, 61.13%, 27.33%, 69.79%, 39.70%, and
100.00%, respectively.
Foreign taxes during the fiscal period ended December 31, 1997 for the
EQ/Putnam International Equity Portfolio, T. Rowe Price International Stock
Portfolio and the Morgan Stanley Emerging Markets Equity Portfolio amounting
to $29,283, $42,243, and $2,617, respectively, are expected to be passed
through to the shareholders as foreign tax credits for the year ending
December 31, 1997. These amounts are 100% allowable as a foreign tax credit.
In addition, for the fiscal year ended December 31, 1997, gross income
derived from sources within foreign countries amounted to $221,578, $330,762
and $64,634 for the EQ/Putnam International Equity Portfolio, T. Rowe Price
International Stock Portfolio and the Morgan Stanley Emerging Markets Equity
Portfolio.
72
