EQ ADVISORS TRUST, 497, 2000-04-28

EQ ADVISORS TRUST
497, 2000-04-28

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Filed Pursuant to Rule 497(c)
Registration File No.: 333-17217

EQ Advisors Trust(SM)

PROSPECTUS DATED MAY 1, 2000

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This Prospectus describes fourteen (14) Portfolios** offered by EQ Advisors
Trust and the Class IA shares offered by the Trust on behalf of each Portfolio
that you can choose as investment alternatives. Each Portfolio has its own
investment objective and strategies that are designed to meet different
investment goals. This Prospectus contains information you should know before
investing. Please read this Prospectus carefully before investing and keep it
for future reference.

INTERNATIONAL STOCK PORTFOLIOS
------------------------------
DOMESTIC PORTFOLIOS Alliance Global
------------------- Alliance International

EQ/Aggressive Stock* FIXED INCOME PORTFOLIOS
Alliance Common Stock -----------------------
Alliance Equity Index Alliance High Yield
Alliance Growth and Income Alliance Intermediate Government Securities
Alliance Small Cap Growth Alliance Money Market
Alliance Quality Bond

BALANCED/HYBRID PORTFOLIOS
--------------------------
EQ/Balanced*
Alliance Conservative Investors
Alliance Growth Investors

* Effective May 1, 2000, the name of the Alliance Aggressive Stock Portfolio
was changed to the "EQ/Aggressive Stock Portfolio" and the Alliance
Balanced Portfolio was changed to the "EQ/Balanced Portfolio."
** All of these Portfolios may not be available in your variable life or
annuity product. Please consult your product prospectus to see which
Portfolios are available under your contract.
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YOU SHOULD BE AWARE THAT THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
APPROVED OR DISAPPROVED OF THE INVESTMENT MERIT OF THESE PORTFOLIOS OR
DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

Version 6

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Overview

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EQ ADVISORS TRUST

This Prospectus tells you about fourteen (14) current Portfolios of EQ Advisors
Trust ("Trust") and the Class IA shares offered by the Trust on behalf of each
Portfolio. The Trust is an open-end management investment company. Each
Portfolio is a separate series of the Trust with its own investment objective,
investment strategies and risks, which are described in this Prospectus. Each of
the current Portfolios of the Trust are diversified for purposes of the
Investment Company Act of 1940, as amended ("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 (the "Contract" or collectively, the
"Contracts") issued by The Equitable Life Assurance Society of the United States
("Equitable") and Equitable of Colorado, Inc. ("EOC") as well as insurance
companies that are not affiliated with Equitable or EOC ("non-affiliated
insurance companies") and to The Equitable Investment Plan for Employees,
Managers and Agents ("Equitable Plan"). The Prospectus is designed to help you
make informed decisions about the Portfolios that are available under your
Contract or under the Equitable Plan. You will find information about your
Contract and how it works in the accompanying prospectus for the Contracts if
you are a Contractholder or participant under a Contract.

Equitable currently serves as the Manager of the Trust. In such capacity,
Equitable currently has overall responsibility for the general management and
administration of the Trust.

Information about the Advisers for each Portfolio is contained in the
description concerning that Portfolio in the section entitled "About the
Investment Portfolios." The Manager has the ultimate responsibility to oversee
each of the Advisers and to recommend their hiring, termination and replacement.
Subject to approval by the Board of Trustees, the Manager has been granted
relief by the Securities and Exchange Commission ("SEC") ("Multi-Manager Order")
that enables the Manager without obtaining shareholder approval to: (i) select
new or additional Advisers for each of the Trust's Portfolios; (ii) enter into
new investment advisory agreements and materially modify existing investment
advisory agreements; and (iii) terminate and replace the Advisers.

Overview

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Table of contents

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1
SUMMARY INFORMATION CONCERNING EQ ADVISORS TRUST 4
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2
ABOUT THE INVESTMENT PORTFOLIOS 10
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DOMESTIC PORTFOLIOS 13
EQ/Aggressive Stock 13
Alliance Common Stock 17
Alliance Equity Index 20
Alliance Growth and Income 23
Alliance Small Cap Growth 26
INTERNATIONAL STOCK PORTFOLIOS 29
Alliance Global 29
Alliance International 32
FIXED INCOME PORTFOLIOS 36
Alliance High Yield 36
Alliance Intermediate Government Securities 40
Alliance Money Market 44
Alliance Quality Bond 47
BALANCED/HYBRID PORTFOLIOS 51
EQ/Balanced 51
Alliance Conservative Investors 56
Alliance Growth Investors 60
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MORE INFORMATION ON PRINCIPAL RISKS 63
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MANAGEMENT OF THE TRUST 69
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The Trust 69
The Manager 69
Expense Limitation Agreement
The Advisers 71
The Administrator 71
The Transfer Agent 72
Brokerage Practices 72
Brokerage Transactions with Affiliates 72
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FUND DISTRIBUTION ARRANGEMENTS 73
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PURCHASE AND REDEMPTION 74
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7
HOW ASSETS ARE VALUED 75
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TAX INFORMATION 76
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FINANCIAL HIGHLIGHTS 77
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1
Summary information concerning EQ Advisors Trust

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The following chart highlights the nineteen (19) Portfolios described in this
Prospectus that you can choose as investment alternatives under your Contracts
offered by Equitable or EOC. The chart and accompanying information identify
each Portfolio's investment objective(s), principal investment strategies, and
principal risks. "More Information on Principal Risks", which more fully
describes each of the principal risks, is provided beginning on page 63.

<TABLE>
<CAPTION>
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EQ ADVISORS TRUST DOMESTIC PORTFOLIOS
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PORTFOLIO INVESTMENT OBJECTIVE(S)
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<S> <C>
EQ/AGGRESSIVE STOCK Seeks to achieve long-term growth of capital

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ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital and increased
income

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ALLIANCE EQUITY INDEX Seeks a total return before expenses that approximates the
total return performance of the S&P 500 Index, including
reinvestment of dividends, at a risk level consistent with
that of the S&P 500 Index
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ALLIANCE GROWTH AND INCOME Seeks to provide a high total return through a combination
of current income and capital appreciation by investing
primarily in income-producing common stocks and
securities convertible into common stocks
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ALLIANCE SMALL CAP GROWTH Seeks to achieve long-term growth of capital
</TABLE>

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<TABLE>
<CAPTION>
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PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL RISKS
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<S> <C>
Stocks and other equity securities of small and General investment, small-cap and mid-cap company,
medium-sized companies (including securities of growth investing, leveraging, derivatives, liquidity,
companies in cyclical industries, companies whose securities lending, and foreign securities risks
securities are temporarily undervalued, companies in
special situations (e.g., change in management, new
products or changes in customer demand) and less widely
known companies)
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Stocks and other equity securities (including preferred General investment, foreign securities, leveraging,
stocks or convertible debt) and fixed income securities derivatives, convertible securities, small-cap and mid-cap
(including junk bonds), foreign securities, derivatives, and company, junk bond, securities lending, and fixed income
securities lending risks
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Securities in the S&P 500 Index, derivatives, and securities General investment, index-fund, derivatives, leveraging,
lending and securities lending risks

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Stocks and securities convertible into stocks (including junk General investment, convertible securities, leveraging,
bonds) derivatives, foreign securities, junk bond, and fixed income
risks

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Stocks and other equity securities of smaller companies General investment, small-cap and mid-cap company,
and undervalued securities (including securities of growth investing, leveraging, derivatives, liquidity,
companies in cyclical industries, companies whose securities lending, portfolio turnover and foreign securities
securities are temporarily undervalued, companies in risks
special situations (e.g., change in management, new
products or changes in customer demand) and less widely
known companies)
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</TABLE>

------------------------- EQ Advisors Trust

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<TABLE>
<CAPTION>
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EQ ADVISORS TRUST INTERNATIONAL STOCK PORTFOLIOS
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PORTFOLIO INVESTMENT OBJECTIVE(S)
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<S> <C>
ALLIANCE GLOBAL Seeks long-term growth of capital

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ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital by investing
primarily in a diversified portfolio of equity securities
selected principally to permit participation in non-U.S.
companies with prospects for growth
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</TABLE>

<TABLE>
<CAPTION>
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EQ ADVISORS TRUST FIXED INCOME PORTFOLIOS
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PORTFOLIO INVESTMENT OBJECTIVE(S)
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<S> <C>
ALLIANCE HIGH YIELD Seeks to achieve a high return by maximizing current
income and, to the extent consistent with that objective,
capital appreciation

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ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES Seeks to achieve high current income consistent with
relative stability of principal through investment primarily in
debt securities issued or guaranteed as to principal and
interest by the U.S. Government or its agencies or
instrumentalities
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</TABLE>

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<TABLE>
<CAPTION>
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PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL RISKS
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<S> <C>
Equity securities of U.S. and established foreign companies General investment, foreign securities, liquidity, derivatives,
(including shares of other mutual funds investing in foreign securities lending, and fixed income risks
securities), debt securities, derivatives, and securities
lending
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Equity securities of non-U.S. companies (including those in General investment, foreign securities, liquidity, growth
emerging markets securities) or foreign government investing, leveraging, derivatives, securities lending,
enterprises (including other mutual funds investing in portfolio turnover, and fixed income risks
foreign securities), debt securities, derivatives, and
securities lending)
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</TABLE>

<TABLE>
<CAPTION>
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PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL RISKS
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<S> <C>
High yield debt securities rated BB/Ba or below or unrated General investment, fixed income, leveraging, loan
securities of comparable quality ("junk bonds"), common participation and assignment, derivatives, liquidity, junk
stocks and other equity securities, foreign securities, bond, foreign securities, small-cap and mid-cap company,
derivatives, and securities lending and securities lending risks
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Securities issued or guaranteed by the U.S. Government, General investment, fixed income, leveraging, derivatives,
including repurchase agreements and forward and securities lending risks
commitments related to U.S. Government securities, debt
securities of non-governmental issuers that own
mortgages, short sales, the purchase or sale of securities
on a when-issued or delayed delivery basis, derivatives,
and securities lending
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</TABLE>

------------------------- EQ Advisors Trust

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<TABLE>
<CAPTION>
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EQ ADVISORS TRUST FIXED INCOME PORTFOLIOS
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PORTFOLIO INVESTMENT OBJECTIVE(S)
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<S> <C>
ALLIANCE MONEY MARKET Seeks to obtain a high level of current income, preserve its
assets and maintain liquidity
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ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with
preservation of capital by investing primarily in investment
grade fixed income securities
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</TABLE>

<TABLE>
<CAPTION>
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EQ ADVISORS TRUST BALANCED/HYBRID PORTFOLIOS
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PORTFOLIO INVESTMENT OBJECTIVE(S)
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<S> <C>
EQ/BALANCED Seeks to achieve a high return through both appreciation
of capital and current income

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ALLIANCE CONSERVATIVE INVESTORS Seeks to achieve a high total return without, in the opinion
of the Adviser, undue risk to principal

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ALLIANCE GROWTH INVESTORS Seeks to achieve the highest total return consistent with
the Adviser's determination of reasonable risk
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</TABLE>

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<TABLE>
<CAPTION>
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PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL RISKS
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<S> <C>
High quality U.S. dollar-denominated money market General investment, money market, leveraging, foreign
instruments (including foreign securities) and securities securities, and securities lending risks
lending
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Investment-grade debt securities rated at least BBB/Baa or General investment, fixed income, convertible securities,
unrated securities of comparable quality at the time of leveraging, derivatives, securities lending, and foreign
purchase, convertible debt securities, preferred stock, securities risks
dividend-paying common stocks, foreign securities, the
purchase or sale of securities on a when-issued,
delayed-delivery or forward commitment basis, derivatives,
and securities lending
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</TABLE>

<TABLE>
<CAPTION>
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PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL RISKS
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<S> <C>
Debt and equity securities, money market instruments, General investment, asset allocation, fixed income,
foreign securities, derivatives, and securities lending derivatives, leveraging, liquidity, securities lending,
portfolio turnover, and foreign securities risks
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Investment grade debt securities and equity securities of General investment, asset allocation, fixed income,
U.S. and foreign issuers, derivatives, and securities lending derivatives, convertible securities, liquidity, leveraging,
securities lending, portfolio turnover, and foreign securities
risks
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Equity securities (including foreign stocks, preferred stocks, General investment, asset allocation, fixed income,
convertible securities, securities of small and medium-sized leveraging, derivatives, liquidity, convertible securities,
companies) and debt securities (including foreign debt small-cap and mid-cap company, securities lending, junk
securities and junk bonds), derivatives, and securities bond, portfolio turnover, and foreign securities risks
lending
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</TABLE>

------------------------- EQ Advisors Trust

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About the investment portfolios

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This section of the Prospectus provides a more complete description of the
principal investment objectives, strategies, and risks of each of the
Portfolios. Of course, there can be no assurance that any Portfolio will achieve
its investment objective.

Please note that:

o A fuller description of each of the principal risks is included in the
section "More Information on Principal Risks," which follows the
description of each Portfolio in this section of the Prospectus.

o Additional information concerning each Portfolio's strategies, investments,
and risks can also be found in the Trust's Statement of Additional
Information.

GENERAL INVESTMENT RISKS

Each of the Portfolios is subject to the following risks:

ASSET CLASS RISK: The returns from the types of securities in which a Portfolio
invests may underperform returns from the various general securities markets or
different asset classes.

MARKET RISK: You could lose money over short periods due to fluctuation in a
Portfolio's share price in reaction to stock or bond market movements, and over
longer periods during extended market downturns.

SECURITY SELECTION RISK: There is the possibility that the specific securities
selected by a Portfolio's Adviser will underperform other funds in the same
asset class or benchmarks that are representative of the general performance of
the asset class.

The Trust's Portfolios are not insured by the FDIC or any other government
agency. Each Portfolio is not a deposit or other obligation of any financial
institution or bank and is not guaranteed. Each Portfolio is subject to
investment risks and possible loss of principal invested.

THE BENCHMARKS

The performance of each of the Trust's Portfolios as shown on the following
pages compares each Portfolio's performance to that of a broad-based securities
market index, an index of funds with similar investment objectives and/or a
blended index. Each of the Portfolios' annualized rates of return are net of:
(i) its investment management fees; and (ii) its other expenses. These rates are
not representative of the actual return you would receive under your Contract.

Broad-based securities indices are unmanaged and are not subject to fees and
expenses typically associated with managed investment company portfolios.
Broad-based securities indices are also not subject to contract and
insurance-related expenses and charges. Investments cannot be made directly in a
broad-based securities 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.

THE CREDIT SUISSE FIRST BOSTON GLOBAL HIGH YIELD INDEX ("CSFB Index") has been
maintained since January 1986 and has several modules representing different
sectors of the high yield market, including a cash paying module, a pay-in-kind
module, and a default module. The CSFB Index is priced weekly and can be sorted
by industry, rating, seniority, liquidity, country of issue, price, yield and
spread.

THE LEHMAN AGGREGATE BOND INDEX ("Lehman Aggregate Bond") is an index comprised
of investment grade fixed income securities, including U.S. Treasury,
mortgage-backed, corporate and "Yankee" bonds (U.S. dollar-denominated bonds
issued outside the United States).

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THE 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 LEHMAN INTERMEDIATE GOVERNMENT BOND INDEX ("Lehman Intermediate Government
Bonds") represents an unmanaged group of securities consisting of all U.S.
Treasury and agency securities with remaining maturities of from one to ten
years and issue amounts of at least $100 million outstanding.

THE LEHMAN TREASURY BOND INDEX ("Lehman Treasury") represents an unmanaged group
of securities consisting of all currently offered public obligations of the U.S.
Treasury intended for distribution in the domestic market.

THE MERRILL LYNCH HIGH YIELD MASTER INDEX ("ML Master") represents an unmanaged
group of securities widely regarded by investors as representative of the high
yield bond market.

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, Australasia and the Far East.
MSCI EAFE Index returns assume dividends reinvested net of withholding taxes and
do not reflect any fees or expenses.

THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX ("MSCI
EMF") is a market capitalization weighted equity index composed of companies
that are representative of the market structure of the following 25 countries:
Argentina, Brazil Free, Chile, China Free, Colombia, Czech Republic, Greece,
Hungary, India, Indonesia Free, Israel, Jordan, Korea, Mexico Free, Pakistan,
Peru, Philippines Free, Poland, Russia, South Africa, Sri Lanka, Taiwan,
Thailand Free, Turkey and Venezuela. "Free" MSCI indices exclude those shares
not purchasable by foreign investors.

THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX ("MSCI World") is an
arithmetic, market value-weighted average of the performance of over 1,300
securities listed on the stock exchanges of twenty foreign countries and the
United States.

THE RUSSELL 2000 INDEX ("Russell 2000") is an unmanaged index which tracks the
performance of 2,000 publicly-traded U.S stocks. It is often used to indicate
the performance of smaller company stocks. It is compiled by the Frank Russell
Company.

THE RUSSELL 2000 GROWTH INDEX ("Russell 2000 Growth") is an unmanaged index
which measures the performance of those companies in the Russell 2000 Index with
higher price-to-book ratios and higher forecasted growth than other companies in
the Russell 2000 Index. It is compiled by the Frank Russell Company.

THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ("S&P 500") is an
unmanaged weighted index containing common stocks of 500 industrial,
transportation, utility and financial companies, regarded as generally
representative of the larger capitalization portion of the United States stock
market. The S&P 500 returns reflect the reinvestment of dividends, if any, but
do not reflect fees, brokerage commissions or other expenses of investing.

THE STANDARD & POOR'S MIDCAP 400 INDEX ("S&P 400 MidCap") is an unmanaged
weighted index of 400 domestic stocks chosen for market size (median market
capitalization of about $610 million), liquidity, and industry group
representation. The S&P 400 returns reflect the reinvestment of dividends, if
any, but do not reflect fees, brokerage commissions or other expenses of
investing.

THE VALUE LINE CONVERTIBLE INDEX ("Value Line Convertible") is comprised of 585
of the most actively traded convertible bonds and preferred stocks on an
unweighted basis.

THE LIPPER AVERAGES are contained in Lipper's survey of the performance of funds
underlying a large universe of

---------------------------------------------------- EQ Advisors Trust

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variable life and annuity contracts, where performance averages are based on net
asset values which reflect the deduction of investment management fees and
direct operating expenses, and, for funds with Rule 12b-1 plans, asset-based
sales charges. This survey is published by Lipper Analytical Services, Inc., a
firm recognized for its reporting of performance of actively managed funds.
Performance data shown for the portfolios does not reflect the deduction of any
insurance-related expenses (which are assumed at the contract level).

"Blended" performance numbers (e.g., 50% S&P 400/50% Russell 2000 or 60% S&P
500/40% Lehman Gov't/Corp) assume a static mix of the two indices. We believe
that these indices reflect more closely the market sectors in which certain
Portfolios invest.

50% S&P 400 MIDCAP INDEX/50% RUSSELL 2000 INDEX - is made up of 50% of the S&P
400 Index, which is an unmanaged weighted index of 400 domestic stocks chosen
for market size (median market capitalization of about $610 million), liquidity
and industry group representation; and 50% of the Russell 2000 Index, which is
an unmanaged index which tracks the performance of 2,000 publicly-traded U.S.
stocks.

50% S&P 500 INDEX/50% LEHMAN GOV'T/CORP. INDEX - is made up of 50% of the S&P
500 Index, which is an unmanaged weighted index containing common stocks of 500
industrial, transportation, utility and financial companies, regarded as
generally representative of the larger capitalization portion of the United
States stock market, and 50% of the Lehman Government/Corporate Index, which
represents an unmanaged group of securities widely regarded by investors as
representative of the bond market.

75% S&P 500 INDEX/25% VALUE LINE CONVERTIBLE INDEX - is made up of 75% of the
S&P 500 Index, which is an unmanaged weighted index containing common stocks of
500 industrial, transportation, utility and financial companies, regarded as
generally representative of the larger capitalization portion of the United
States stock market, and 25% of the Value Line Convertible Index, which is
comprised of 585 of the most actively traded convertible bonds and preferred
stocks on an unweighted basis.

70% S&P 500 INDEX/30% LEHMAN GOV'T/CORP. INDEX - is made up of 70% of the S&P
500 Index, which is an unmanaged weighted index containing common stocks of 500
industrial, transportation, utility and financial companies, regarded as
generally representative of the larger capitalization portion of the United
States stock market, and 30% of the Lehman Government/Corporate Index, which
represents an unmanaged group of securities widely regarded by investors as
representative of the bond market.

70% LEHMAN TREASURY/30% S&P 500 INDEX - is made up of 70% of the Lehman Treasury
Bond Index, which represents an unmanaged group of securities consisting of all
currently offered public obligations of the U.S. Treasury intended for
distribution in the domestic market, and 30% of the S&P 500 Index, which is an
unmanaged weighted index containing common stocks of 500 industrial,
transportation, utility and financial companies, regarded as generally
representative of the larger capitalization portion of the United States stock
market.

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DOMESTIC PORTFOLIOS

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EQ/AGGRESSIVE STOCK PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve long-term growth of capital.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in common stocks and other equity securities of
small and medium-sized companies that, in the opinion of the Adviser, have
favorable appreciation prospects. The Portfolio may also invest in securities of
companies in cyclical industries, companies whose securities are temporarily
undervalued, companies in special situations (e.g., change in management, new
products or changes in customer demand) companies stocks whose growth prospects
are not recognized by the market and less widely known companies.

The Portfolio may also invest up to 25% of its total assets in foreign
securities and may also make use of various other investment strategies, (e.g.,
investments in debt securities, making secured loans of its portfolio
securities). The Portfolio may also use derivatives, including: writing covered
call options and purchasing call and put options on individual equity
securities, securities indexes and foreign currencies. The Portfolio may also
purchase and sell stock index and foreign currency futures contracts and options
thereon.

When market or financial conditions warrant, or it appears that the Portfolio's
investment objective will not be achieved primarily through investments in
common stocks, the Portfolio may invest in other equity-type securities (such as
preferred stocks and convertible debt instruments) and options for hedging
purposes. The Portfolio may also make temporary investments in corporate fixed
income securities, which will generally be investment grade, or invest part of
its assets in cash or cash equivalents, including high-quality money market
instruments for liquidity or defensive purposes. Such investments could result
in the Portfolio not achieving its investment objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

MULTIPLE-ADVISER RISK: The EQ/Aggressive Stock Portfolio employs multiple
Advisers. Each of the Advisers independently chooses and maintains a portfolio
of common stocks for the Portfolio and each is responsible for investing a
specific allocated portion of the Portfolio's assets. Because each Adviser will
be managing its allocated portion of the Portfolio independently from the other
Advisers, the same security may be held in two different portions of the
Portfolio, or may be acquired for one portion of the Portfolio at a time when
the Adviser of another portion deems it appropriate to dispose of the security
from that other portion. Similarly, under some market conditions, one Adviser
may believe that temporary, defensive investments in short-term instruments or
cash are appropriate when the other Adviser or Advisers believe continued
exposure to the equity markets is appropriate for their portions of the
Portfolio. Because each Adviser directs the trading for its own portion of the
Portfolio, and does not aggregate its transactions with those of the other
Advisers, the Portfolio may incur higher brokerage costs than would be the case
if a single Adviser were managing the entire Portfolio.

GROWTH INVESTING RISK: Certain of the Advisers for this Portfolio may use a
growth oriented approach to stock selection. The price of growth stocks may be
more sensitive to changes in current or expected earnings than the prices of
other stocks. The price of growth stocks is also subject to the risk that the
stock price of one or more companies will fall or will fail to appreciate as
anticipated by the Adviser, regardless of movements in the securities market.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

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the securities of such companies are less well-known, held primarily by insiders
or institutional investors and may trade less frequently and in lower volume;
such companies are more likely to experience greater or more unexpected changes
in their earnings and growth prospects; such companies have limited financial
resources or may depend on a few key employees; and the products or technologies
of such companies may be at a relatively early stage of development or not fully
tested.

LIQUIDITY RISK: Certain securities held by the Portfolio may be difficult (or
impossible) to sell at the time and at the price the seller would like which may
cause the Portfolio to lose money or be prevented from earning capital gains.

DERIVATIVES RISK: The Portfolio's investments in derivatives can significantly
increase the Portfolio's exposure to market risk or credit risk of the
counterparty. Derivatives also involve the risk of mispricing or improper
valuation and the risk that changes in value of the derivative may not correlate
perfectly with the relevant assets, rates and indices.

FOREIGN SECURITIES RISK: The Portfolio's investments in foreign securities
involve risks not associated with investing in U.S. securities, which can
adversely affect the Portfolio's performance. Foreign markets, particularly
emerging markets, may be less liquid, more volatile, and subject to less
government supervision than domestic markets. There may be difficulties
enforcing contractual obligations, and it may take more time for trades to clear
and settle. In addition, the value of foreign investments can be adversely
affected by: unfavorable currency exchange rates (relative to the U.S. dollar
for securities denominated in foreign currencies); inadequate or inaccurate
information about foreign companies; higher transaction, brokerage and custody
costs; expropriation or nationalization; adverse changes in foreign economic and
tax policies; and foreign government instability, war or other adverse political
or economic actions.

LEVERAGING RISK: When the Portfolio borrows money or otherwise leverages its
portfolio, the value of an investment in the Portfolio will be more volatile and
all other risk will tend to be compounded.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns of a
broad-based index; (ii) the returns of a "blended" index of two broad-based
indices; and (iii) the returns of an index of funds with similar investment
objectives. Past performance is not an indication of future performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Aggressive Stock
Portfolio) managed by Alliance using the same investment objectives and strategy
as the Portfolio. For these purposes, the Portfolio is considered to be the
successor entity to the predecessor registered investment company (HRT/Alliance
Aggressive Stock Portfolio) whose inception date is January 27, 1986. The assets
of the predecessor were transferred to the Portfolio on October 18, 1999.
Following that transfer, the performance shown (for the period October 19, 1999
through December 31, 1999) is that of the Portfolio. For these purposes, the
performance results of the Portfolio and its predecessor registered investment
company have been linked.

Both the bar chart and table assume reinvestment of dividends and distributions.
The performance results do not reflect any insurance and Contract-related fees
and expenses, which would reduce the performance results.

<PAGE>

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15
- --------------------------------------------------------------------------------

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1990 .................... 8.2%
1991 .................... 86.9%
1992 .................... -3.2%
1993 .................... 16.8%
1994 .................... -3.8%
1995 .................... 31.6%
1996 .................... 22.2%
1997 .................... 10.9%
1998 .................... 0.3%
1999 .................... 18.84%

Best quarter (% and time period) Worst quarter (% and time period)
40.10% (1991 1st Quarter) (27.19)% (1998 3rd Quarter)
- ---------------------------------------------------------------------

- ------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- ------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- ------------------------------------------------------------------------
EQ/Aggressive Stock Portfolio
- Class IA Shares 18.84% 16.29% 16.68%
- ------------------------------------------------------------------------
50% S&P 400 MidCap
Index/50% Russell
2000*,** 18.09% 19.92% 15.41%
- ------------------------------------------------------------------------
S&P 400 MidCap Index* 14.72% 23.05% 17.32%
- ------------------------------------------------------------------------
Lipper MidCap Growth Funds
Average* 46.25% 22.54% 16.19%
- ------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

In accordance with the Multi-Manager Order, the Manager may, among other things,
select new or additional Advisers for the Portfolio and may allocate and
re-allocate the Portfolio's assets among Advisers. Currently, Alliance Capital
Management, L.P. and Massachusetts Financial Services Company have been selected
by the Manager to serve as Advisers for this Portfolio. It is anticipated that
additional Advisers may be added in the future.

The Manager initially allocated the assets of the Portfolio and will allocate
all daily cash inflows (share purchases) and outflows (redemptions and expense
items) among the Advisers, subject to the oversight of the Board. The Manager
intends, on a periodic basis, to review the asset allocation in the Portfolio.
The Manager does not intend, but reserves the right, subject to the oversight of
the Board, to reallocate assets from one Adviser to another when it would be in
the best interest of the Portfolio and its shareholders to do so. In some
instances, the effect of the reallocation will be to shift assets from a better
performing Adviser to other Adviser(s).

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance was the exclusive Adviser to the Portfolio and
its predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

ALDEN M. STEWART and RANDALL E. HAASE have been the persons principally
responsible for the day-to-day management of the Portfolio and its
predecessor since 1993. Mr. Stewart, an Executive Vice President of
Alliance, has been associated with Alliance since 1970. Mr. Haase, a Senior
Vice President of Alliance, has been associated with Alliance since 1988.

MASSACHUSETTS FINANCIAL SERVICES COMPANY ("MFS"), 500 Boylston Street, Boston,
MA 02116. MFS was added as an Adviser to the Portfolio as of May 1, 2000. MFS is
America's oldest mutual fund organization. MFS and its predecessor organizations
have a history of money management dating from 1924 and the founding of the
first mutual fund in the United States, Massachusetts Investors Trust. MFS is a
subsidiary of Sun Life of Canada (United States) Financial Services Holdings
Inc., which, in turn, is an indirect wholly-owned subsidiary of Sun Life
Assurance Company of Canada.

The Portfolio Managers are TONI Y. SHIMURA, a Senior Vice President of MFS,
who has been employed by MFS

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
16
- --------------------------------------------------------------------------------

as a portfolio manager since 1995 and JOHN W. BALLEN, Chief Investment
Officer and President of MFS, who provides general oversight in the
management of the Portfolio.

<PAGE>

- ----------
17
- --------------------------------------------------------------------------------

ALLIANCE COMMON STOCK PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve long-term growth of capital and increase
income.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in common stocks and other equity-type
securities (such as preferred stocks or convertible debt) that the Adviser
believes will share in the growth of the nation's economy over a long period.

Most of the time, the Portfolio will invest primarily in common stocks that are
listed on national securities exchanges. Smaller amounts will be invested in
stocks that are traded over-the-counter and in other equity-type securities.
Current income is an incidental consideration. The Portfolio generally will not
invest more than 20% of its total assets in foreign securities.

The Portfolio may also make use of various other investment strategies,
including making secured loans of up to 50% of its total assets. The Portfolio
may also use derivatives, including: writing covered call and put options,
buying call and put options on individual common stocks and other equity-type
securities, securities indexes, and foreign currencies. The Portfolio may also
purchase and sell stock index and foreign currency futures contracts and options
thereon.

When market or financial conditions warrant or it appears that the Portfolio's
investment objective will not be achieved by purchasing equity securities, the
Portfolio may invest a portion of its assets in debt securities, including
nonparticipating and nonconvertible preferred stocks, investment grade debt
securities and junk bonds, e.g., rated BB or lower by Standard & Poor's ("S&P")
or Ba or lower by Moody's Investor Service, Inc. ("Moody's"). The Portfolio also
may make temporary investments in high-quality U.S. dollar-denominated money
market instruments. Such investment strategies could result in the Portfolio not
achieving its investment objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

CONVERTIBLE SECURITIES RISK: Convertible securities generally enable the
Portfolio to benefit from increases in the market price of the underlying common
stock and provide higher yields than the underlying common stocks, but generally
offer lower yields than nonconvertible securities of similar quality. The value
of convertible securities fluctuates both in relation to changes in interest
rates and changes in the value of the underlying common stock.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
18
- --------------------------------------------------------------------------------

SMALL-CAP AND MID-CAP COMPANY RISK: The Portfolio's investments in small-cap and
mid-cap companies may be subject to more abrupt or erratic movements in price
than are those of larger, more established companies because: the securities of
such companies are less well-known, held primarily by insiders or institutional
investors and may trade less frequently and in lower volume; such companies are
more likely to experience greater or more unexpected changes in their earnings
and growth prospects; such companies have limited financial resources or may
depend on a few key employees; and the products or technologies of such
companies may be at a relatively early stage of development or not fully tested.

FIXED INCOME RISK: To the extent that a substantial amount of the Portfolio's
assets are invested in fixed income securities, that portion of the Portfolio's
performance will be affected by changes in interest rates, the credit risk of
the issuer, the duration or maturity of the Portfolio's fixed income holdings,
and adverse market or economic conditions. When interest rates rise, the value
of the Portfolio's fixed income securities, particularly those with longer
durations or maturities, will go down. When interest rates fall, the reverse is
true. In addition, to the extent that the Portfolio invests in investment-grade
securities which are rated BBB by S&P or an equivalent rating by any other
NRSRO, it will be exposed to greater risk than if it invested in higher-rated
obligations because BBB-rated securities are regarded as having only an adequate
capacity to pay principal and interest, are considered to lack outstanding
investment characteristics, and may be speculative.

JUNK BOND RISK: The Portfolio may invest a portion of its assets in "junk bonds"
or lower-rated securities rated BB or lower by S&P or an equivalent rating by
any other NRSRO or unrated securities of similar quality. Junk bonds have
speculative elements or are predominantly speculative credit risks, therefore,
credit risk is particularly significant for this Portfolio. This Portfolio may
also be subject to greater credit risk because it may invest in debt securities
issued in connection with corporate restructurings by highly leveraged issuers
or in debt securities not current in the payment of interest or principal, or in
default.

SECURITIES LENDING RISK: This Portfolio may make secured loans of its portfolio
securities. The risks in lending portfolio securities, as with other extensions
of secured credit, consist of possible delay in receiving additional collateral,
or in the recovery of the securities or possible loss of rights in the
collateral should the borrower fail financially.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns of a
broad-based index and (ii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Common Stock Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Common
Stock Portfolio) whose inception date is June 16, 1975. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

<PAGE>

- ----------
19
- --------------------------------------------------------------------------------

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1990 .................... -8.1%
1991 .................... 37.9%
1992 .................... 3.2%
1993 .................... 24.8%
1994 .................... -2.1%
1995 .................... 32.5%
1996 .................... 24.3%
1997 .................... 29.4%
1998 .................... 29.4%
1999 .................... 25.19%

Best quarter (% and time period) Worst quarter (% and time period)
28.42% (1998 4th Quarter) (20.22)% (1990 3rd Quarter)
- ---------------------------------------------------------------------

- --------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- --------------------------------------------------------------------------
Alliance Common Stock Portfolio
- Class IA Shares 25.19% 28.11% 18.61%
- --------------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 18.21%
- --------------------------------------------------------------------------
Lipper Growth Equity Mutual
Funds Average* 31.48% 26.45% 17.79%
- --------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment compay since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

TYLER J. SMITH has been responsible for the day-to-day management of the
Portfolio and its predecessor since 1977. Mr. Smith, a Senior Vice President of
Alliance, has been associated with Alliance since 1970.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
20
- --------------------------------------------------------------------------------

ALLIANCE EQUITY INDEX PORTFOLIO

INVESTMENT OBJECTIVE: Seeks a total return before expenses that approximates the
total return performance of the S&P 500 Index, including reinvestment of
dividends, at a risk level consistent with that of the S&P 500 Index.

THE INVESTMENT STRATEGY

The Adviser will not utilize customary economic, financial or market analyses or
other traditional investment techniques in managing the Portfolio. Rather, the
Adviser will use proprietary modeling techniques to construct a portfolio that
it believes will, in the aggregate, approximate the performance results of the
S&P 500 Index.

The Adviser will first select from the largest capitalization securities in the
S&P 500 on a capitalization-weighted basis. Generally, the largest
capitalization securities reasonably track the S&P 500 because the S&P 500 is
significantly influenced by a small number of securities. However, in the
Adviser's view, selecting securities on the basis of their capitalization alone
would distort the Portfolio's industry diversification, and therefore economic
events could potentially have a dramatically different impact on the performance
of the Portfolio from that of the S&P 500. Recognizing this fact, the modeling
techniques also consider industry diversification when selecting investments for
the Portfolio. The Adviser also seeks to diversify the Portfolio's assets with
respect to market capitalization. As a result, the Portfolio will include
securities of smaller and medium-sized capitalization companies in the S&P 500.

Cash may be accumulated in the Portfolio until it reaches approximately 1% of
the value of the Portfolio at which time such cash will be invested in common
stocks as described above. Accumulation of cash increases tracking error. The
Portfolio will, however, remain substantially fully invested in common stocks
even when common stock prices are generally falling. Similarly, adverse
performance of a stock will ordinarily not result in its elimination from the
Portfolio.

For more information on the S&P 500, see the preceding section "The
Benchmarks." The Portfolio is not sponsored, endorsed, sold or promoted by
Standard & Poor's Corporation ("S&P") and S&P makes no guarantee as to the
accuracy and/or completeness of the S&P 500 or any data included therein.

In order to reduce brokerage costs, maintain liquidity to meet shareholder
redemptions or minimize tracking error when the Portfolio holds cash, the
Portfolio may from time to time buy and hold futures contracts on the S&P 500
Index and options on such futures contracts. The contract value of futures
contracts purchased by the Portfolio plus the contract value of futures
contracts underlying call options purchased by the Portfolio will not exceed 20%
of the Portfolio's total assets. The Portfolio may seek to increase income by
lending its portfolio securities with a value of up to 50% of its total assets
to brokers-dealers.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

INDEX-FUND RISK: The Portfolio is not actively managed and invests in securities
included in the index regardless of their investment merit. Therefore, the
Portfolio cannot modify its investment strategies to respond to changes in the
economy and may be particularly susceptible to a general decline in the U.S. or
global stock market segment relating to the index. Although the Portfolio's
modeling techniques are intended to produce performance that approximates that
of the S&P 500 (before expenses), there can be no assurance that these
techniques will reduce "tracking error" (i.e., the difference between the
Portfolio's investment results (before expenses) and the S&P 500's). Tracking
error may arise as a result of brokerage costs, fees

<PAGE>

- ----------
21
- --------------------------------------------------------------------------------

and operating expenses and a lack of correlation between the Portfolio's
investments and the S&P 500.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last five calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one year, five years
and since inception and compares the Portfolio's performance to: (i) the returns
of a broad-based index and (ii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Equity Index Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Equity
Index Portfolio) whose inception date is March 1, 1994. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1995 .................... 36.5%
1996 .................... 22.4%
1997 .................... 32.6%
1998 .................... 28.1%
1999 .................... 20.38%

Best quarter (% and time period) Worst quarter (% and time period)
21.13% (1998 4th Quarter) (9.97)% (1998 3rd Quarter)
- ---------------------------------------------------------------------

- --------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------
SINCE
ONE YEAR FIVE YEARS INCEPTION
- --------------------------------------------------------------------------
Alliance Equity Index Portfolio
- Class IA Shares 20.38% 27.84% 23.63%
- --------------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 24.14%
- --------------------------------------------------------------------------
Lipper S&P 500 Index Funds
Average* 20.48% 28.07% 25.07%
- --------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
22
- --------------------------------------------------------------------------------

predecessor commenced operations. Alliance, a publicly traded limited
partnership, is indirectly majority-owned by Equitable. Alliance manages
investment companies, endowment funds, insurance companies, foreign entities,
qualified and non-tax qualified corporate funds, public and private pension and
profit-sharing plans, foundations and tax-exempt organizations.

JUDITH A. DEVIVO has been responsible for the day-to-day management of the
Portfolio and its predecessor since its inception. Ms. DeVivo, a Vice President
of Alliance, has been associated with Alliance since 1970.

<PAGE>

- ----------
23
- --------------------------------------------------------------------------------

ALLIANCE GROWTH AND INCOME PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to provide a high total return through a combination
of current income and capital appreciation by investing primarily in
income-producing common stocks and securities convertible into common stocks.

THE INVESTMENT STRATEGY

The Portfolio seeks to maintain a portfolio yield above that of issuers
comprising the S&P 500 and to achieve (in the long run) a rate of growth in
Portfolio income that exceeds the rate of inflation. The Portfolio will
generally invest in common stocks of "blue chip" issuers, i.e., those:

o that have a total market capitalization of at least $1 billion;

o that pay periodic dividends; and

o whose common stock is in the highest four issuer ratings for S&P (i.e., A+,
A, B or B+) or Moody's (i.e., high grade, investment grade, upper medium
grade or medium grade) or, if unrated, is determined to be of comparable
quality by the Adviser.

It is expected that on average the dividend rate of these issuers will exceed
the average rate of issuers constituting the S&P 500.

The Portfolio may also invest without limit in securities convertible into
common stocks, which include convertible bonds, convertible preferred stocks and
convertible warrants. The Portfolio may also invest up to 30% of its total
assets in high yield, high risk convertible securities rated at the time of
purchase below investment grade (i.e., rated BB or lower by S&P or Ba or lower
by Moody's or determined by the Adviser to be of comparable quality).

The Portfolio does not expect to invest more than 25% of its total assets in
foreign securities, although it may do so without limit. It may enter into
foreign currency futures contracts (and related options), forward foreign
currency exchange contracts and options on currencies for hedging purposes.

The Portfolio may also write covered call and put options on securities and
securities indexes for hedging purposes or to enhance its return and may
purchase call and put options on securities and securities indexes for hedging
purposes. The Portfolio may also purchase and sell securities index futures
contracts and may write and purchase options thereon for hedging purposes.

When market or financial conditions warrant, the Portfolio may invest in certain
money market instruments for temporary or defensive purposes. Such investment
strategies could result in the Portfolio not achieving its investment objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

FIXED INCOME RISK: To the extent that a substantial amount of the Portfolio's
assets are invested in fixed income

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
24
- --------------------------------------------------------------------------------

securities, that portion of the Portfolio's performance will be affected by
changes in interest rates, the credit risk of the issuer, the duration or
maturity of the Portfolio's fixed income holdings, and adverse market or
economic conditions. When interest rates rise, the value of the Portfolio's
fixed income securities, particularly those with longer durations or maturities,
will go down. When interest rates fall, the reverse is true. In addition, to the
extent that the Portfolio invests in investment-grade securities which are rated
BBB by S&P or an equivalent rating by any other NRSRO, it will be exposed to
greater risk than if it invested in higher-rated obligations because BBB-rated
securities are regarded as having only an adequate capacity to pay principal and
interest, are considered to lack outstanding investment characteristics, and may
be speculative.

JUNK BOND RISK: The Portfolio may invest a portion of its assets in "junk bonds"
or lower-rated securities rated BB or lower by S&P or an equivalent rating by
any other NRSRO or unrated securities of similar quality. Therefore, credit risk
is particularly significant for this Portfolio. Junk bonds have speculative
elements or are predominantly speculative credit risks. This Portfolio may also
be subject to greater credit risk because it may invest in debt securities
issued in connection with corporate restructurings by highly leveraged issuers
or in debt securities not current in the payment of interest or principal, or in
default.

FOREIGN SECURITIES RISK: To the extent the Portfolio invests in foreign
securities, it is subject to risks not associated with investing in U.S.
securities, which can adversely affect the Portfolio's performance. Foreign
markets, particularly emerging markets, may be less liquid, more volatile, and
subject to less government supervision than domestic markets. There may be
difficulties enforcing contractual obligations, and it may take more time for
trades to clear and settle. In addition, the value of foreign investments can be
adversely affected by: unfavorable currency exchange rates (relative to the U.S.
dollar for securities denominated in foreign currencies); inadequate or
inaccurate information about foreign companies; higher transaction, brokerage
and custody costs; expropriation or nationalization; adverse changes in foreign
economic and tax policies; and foreign government instability, war or other
adverse political or economic actions.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last six calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one year, five years
and since inception and compares the Portfolio's performance to: (i) the returns
of a broad-based index; (ii) the returns of a "blended" index of equity and
fixed income securities; and (iii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Growth and Income
Portfolio) managed by the Adviser using the same investment objectives and
strategy as the Portfolio. For these purposes, the Portfolio is considered to be
the successor entity to the predecessor registered investment company
(HRT/Alliance and Growth Income Portfolio) whose inception date is October 1,
1993. The assets of the predecessor were transferred to the Portfolio on October
18, 1999. Following that transfer, the performance shown (for the period October
19, 1999 through December 31, 1999) is that of the Portfolio. For these
purposes, the performance results of the Portfolio and its predecessor
registered investment company have been linked.

Both the bar chart and table assume reinvestment of dividends and distributions.
The performance results do not

<PAGE>

- ----------
25
- --------------------------------------------------------------------------------

reflect any insurance and Contract-related fees and expenses, which would
reduce the performance results.

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1994 .................... -0.6%
1995 .................... 24.1%
1996 .................... 20.1%
1997 .................... 26.9%
1998 .................... 20.9%
1999 .................... 18.66%

Best quarter (% and time period) Worst quarter (% and time period)
26.28% (1998 4th Quarter) (15.03)% (1998 3rd Quarter)
- ---------------------------------------------------------------------

- --------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------
SINCE
ONE YEAR FIVE YEARS INCEPTION
- -------------------------------------------------------------------------
Alliance Growth and Income
Portfolio - Class IA Shares 18.66% 22.08% 17.15%
- -------------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 23.43%
- -------------------------------------------------------------------------
75% S&P 500 Index/25%
Value Line Convertible*,** 20.71% 25.01% 18.77%
- -------------------------------------------------------------------------
Lipper Growth and Income Funds
Average* 14.51% 21.78% 17.57%
- --------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

PAUL RISSMAN and W. THEODORE KUCK have been the persons responsible for the
day-to-day management of the Portfolio, Mr. Rissman since 1996 and Mr. Kuck
since the Portfolio and its predecessor's inception. Mr. Rissman, a Senior Vice
President of Alliance, has been associated with Alliance since 1989. Mr. Kuck, a
Vice President of Alliance, has been associated with Alliance since 1971.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ----------
26
- --------------------------------------------------------------------------------

ALLIANCE SMALL CAP GROWTH PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve long-term growth of capital.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in U.S. common stocks and other equity-type
securities issued by smaller companies with favorable growth prospects. The
Portfolio may at times invest in companies in cyclical industries, companies
whose securities are temporarily undervalued, companies in special situations
(e.g., change in management, new products or changes in customer demand) and
less widely known companies.

Under normal market conditions, the Portfolio intends to invest at least 65% of
its total assets in securities of small capitalization companies (currently
considered by the Adviser to mean companies with market capitalization at or
below $3 billion).

The Portfolio may invest in foreign securities and may also make use of various
other investment strategies, including making secured loans of up to 50% of its
total portfolio securities. The Portfolio may also use derivatives including:
writing covered call options and purchasing call and put options on individual
equity securities, securities indexes and foreign currencies. The Portfolio may
also purchase and sell stock index and foreign currency futures contracts and
options thereon.

The Portfolio may invest up to 20% of its net asset value, measured at the time
of investment, in securities principally traded on foreign securities markets
(other than commercial paper).

When market or financial conditions warrant, the Portfolio may invest in other
equity-type securities (such as preferred stocks and convertible debt
instruments) and investment grade corporate fixed income securities. For
temporary or defensive purposes, the Portfolio may invest without limitation in
cash or cash equivalents or high-quality money market instruments. Such
investments could result in the Portfolio not achieving its investment
objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

GROWTH INVESTING RISK: As noted above, this Portfolio uses a growth oriented
approach to stock selection. The price of growth stocks may be more sensitive to
changes in current or expected earnings than the prices of other stocks. The
price of growth stocks is also subject to the risk that the stock price of one
or more companies will fall or will fail to appreciate as anticipated by the
Adviser, regardless of movements in the securities market.

<PAGE>

- ----------
27
- --------------------------------------------------------------------------------

risk that changes in value of the derivative may not correlate perfectly with
the relevant assets, rates and indices.

PORTFOLIO TURNOVER RISK: The Portfolio's turnover rate was over 100% per year.
Higher portfolio turnover (e.g., over 100% per year) will cause the Portfolio to
incur additional transaction costs that could be passed through to shareholders.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for 1998
and 1999, the Portfolio's first two years of existence and some of the risks of
investing in the Portfolio by showing yearly changes in the Portfolio's
performance. The table below shows the Portfolio's average annual total returns
for one year and since inception and compares the Portfolio's performance to:
(i) the returns of a broad-based index and (ii) the returns of an index of funds
with similar investment objectives. Past performance is not an indication of
future performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Small Cap Growth
Portfolio) managed by the Adviser using the same investment objectives and
strategy as the Portfolio. For these purposes, the Portfolio is considered to be
the successor entity to the predecessor registered investment company
(HRT/Alliance Small Cap Growth Portfolio) whose inception date is May 1, 1997.
The assets of the predecessor were transferred to the Portfolio on October 18,
1999. Following that transfer, the performance shown (for the period October 19,
1999 through December 31, 1999) is that of the Portfolio. For these purposes,
the performance results of the Portfolio and its predecessor registered
investment company have been linked.

- --------------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------

1998 .................... -4.4%
1999 .................... 27.75%

Best quarter (% and time period) Worst quarter (% and time period)
28.30% (1999 4th Quarter) (28.07)% (1998 3rd Quarter)
- --------------------------------------------------------------------------

---------------------------------------------------- EQ Advisors Trust

<PAGE>

DOMESTIC PORTFOLIOS (CONTINUED)

- ---------
28
- --------------------------------------------------------------------------------

- -----------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- -----------------------------------------------------------------
SINCE
ONE YEAR INCEPTION
- -----------------------------------------------------------------
Alliance Small Cap Growth Portfolio -
Class IA Shares 27.75% 17.83%
- -----------------------------------------------------------------
Russell 2000 Growth Index* 43.09% 25.88%
- -----------------------------------------------------------------
Lipper Small Company Growth Funds
Average* 38.28% 19.36%
- -----------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

BRUCE ARONOW has been responsible for the day-to-day management of the Portfolio
since February 2000. Mr. Aronow is a Vice President of Alliance and has been
associated with Alliance since May 1999. Prior thereto, he had been associated
with Invesco since May 1998, and before that a Vice President of Chancellor LGT
Asset Management since 1996 and a Vice President of Chancellor Capital
Management since before 1995.

<PAGE>

INTERNATIONAL STOCK PORTFOLIOS

- ----------
29
- --------------------------------------------------------------------------------

ALLIANCE GLOBAL PORTFOLIO

INVESTMENT OBJECTIVE: Seeks long-term growth of capital.

THE INVESTMENT STRATEGY
The Portfolio invests primarily in a diversified mix of equity securities of
U.S. and established foreign companies. The Adviser believes the equity
securities of these established non-U.S. companies have prospects for growth.
The Portfolio intends to make investments in several countries and to have
represented in the Portfolio business activities in not less than three
different countries (including the United States).

These non-U.S. companies may have operations in the United States, in their
country of incorporation or in other countries.

The Portfolio may invest in any type of security including, but not limited to,
common and preferred stock, as well as shares of mutual funds that invest in
foreign securities, bonds and other evidences of indebtedness, and other
securities of issuers wherever organized and governments and their political
subdivisions. Although no particular proportion of stocks, bonds or other
securities is required to be maintained, the Portfolio intends under normal
conditions to invest in equity securities.

The Portfolio may also make use of various other investment strategies,
including making secured loans of up to 50% of its total assets. The Portfolio
may also use derivatives including: writing covered call and put options,
purchasing call and put options on individual equity securities, securities
indexes, and foreign currencies. The Portfolio may also purchase and sell stock
index, foreign currency and interest rate futures contracts and options on such
contracts, as well as forward foreign currency exchange contracts.

When market or financial conditions warrant, the Portfolio may at times invest
substantially all of its assets in securities issued by U.S. companies or in
cash or cash equivalents, including money market instruments issued by foreign
entities for temporary or defensive purposes. Such investment strategies could
result in the Portfolio not achieving its investment objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

FOREIGN SECURITIES RISK: Investing in foreign securities involves risks not
associated with investing in U.S. securities that can adversely affect the
Portfolio's performance. Foreign markets, particularly emerging markets, may be
less liquid, more volatile and subject to less government supervision than
domestic markets. There may be difficulties enforcing contractual obligations,
and it may take more time for trades to clear and settle. In addition, foreign
investments can be adversely affected by: unfavorable currency exchange rates
(relative to the U.S. dollar for securities denominated in a foreign
currencies); inadequate or inaccurate information about foreign companies;
higher transaction, brokerage and custody costs; expropriation or
nationalization; adverse changes in foreign economic and tax policies; and
foreign government instability, war or other adverse political or economic
actions. Other specific risks of investing in foreign securities include:

EMERGING MARKET RISK: There are greater risks involved in investing in
emerging markets countries and/or their securities markets, such as less
diverse and less mature economic structures, less stable political systems,
more restrictive foreign investment policies, smaller-sized securities
markets and low trading volumes. Such risks can make investments illiquid
and more volatile than investments in developed countries and such
securities may be subject to abrupt and severe price declines.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

INTERNATIONAL STOCK PORTFOLIOS (CONTINUED)

- ----------
30
- --------------------------------------------------------------------------------

During a three-year transitional period, the Euro will coexist with each
participating state's currency and, on July 1, 2002, the Euro is expected
to become the sole currency of the participating states. The introduction
of the Euro will result in the redenomination of European debt and equity
securities over a period of time, which may result in various legal and
accounting differences and/or tax treatments that otherwise would not
likely occur. During this period, the creation and implementation of
suitable clearing and settlement systems and other operational problems may
cause market disruptions that could adversely affect investments quoted in
the Euro.

REGULATORY RISK: In general, foreign companies are also not subject to
uniform accounting, auditing and financial reporting standards or to other
regulatory practices and requirements as are U.S. companies, which could
adversely affect their value.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns of a
broad-based index and (ii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Global Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Global
Portfolio) whose inception date is August 27, 1987. The assets of the

<PAGE>

- ----------
31
- --------------------------------------------------------------------------------

predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1990 .................... -6.1%
1991 .................... 30.5%
1992 .................... -0.5%
1993 .................... 32.1%
1994 .................... 5.2%
1995 .................... 18.8%
1996 .................... 14.6%
1997 .................... 11.7%
1998 .................... 21.8%
1999 .................... 38.53%

Best quarter (% and time period) Worst quarter (% and time period)
26.59% (1998 4th Quarter) (16.99)% (1998 3rd Quarter)
- ---------------------------------------------------------------------

- -------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- -------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- -------------------------------------------------------------
Alliance Global
Portfolio -
Class IA Shares 38.53% 20.74% 15.84%
- -------------------------------------------------------------
Lipper Global
Mutual Funds
Average* 44.18% 19.42% 11.73%
- -------------------------------------------------------------
MSCI World
Index* 24.93% 19.76% 11.42%
- -------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

SANDRA L. YEAGER has been responsible for the day-to-day management of the
Portfolio's and its predecessor's investment program since 1998. Ms. Yeager, a
Senior Vice President of Alliance, has been associated with Alliance since 1990.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

INTERNATIONAL STOCK PORTFOLIOS (CONTINUED)

- ----------
32
- --------------------------------------------------------------------------------

ALLIANCE INTERNATIONAL PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve long-term growth of capital by investing
primarily in a diversified portfolio of equity securities selected principally
to permit participation in non-U.S. companies with prospects for growth.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in a diversified portfolio of equity securities
selected principally to permit participation in non-U.S. companies or foreign
governmental enterprises that the Adviser believes have prospects for growth.
The Portfolio may invest anywhere in the world (including developing countries
or "emerging markets"), although it will not generally invest in the United
States. The Portfolio may purchase securities of developing countries, which
include, among others, Mexico, Brazil, Hong Kong, India, Poland, Turkey and
South Africa.

These non-U.S. companies may have operations in the United States, in their
country of incorporation and/or in other countries.

The Portfolio intends to have represented in the Portfolio business activities
in not less than three different countries.

The Portfolio may also invest in any type of investment grade, fixed income
security including, but not limited to, preferred stock, convertible securities,
bonds, notes and other evidences of indebtedness of foreign issuers, including
obligations of foreign governments. Although no particular proportion of stocks,
bonds or other securities is required to be maintained, the Portfolio intends
under normal market conditions to invest primarily in equity securities.

The Portfolio may also make use of various other investment strategies,
including the purchase and sale of shares of other mutual funds investing in
foreign securities and making loans of up to 50% of its portfolio securities.
The Portfolio may also use derivatives, including: writing covered call and put
options, purchasing purchase call and put options on individual equity
securities, securities indexes, and foreign currencies. The Portfolio may also
purchase and sell stock index, foreign currency and interest rate futures
contracts and options on such contracts, as well as forward foreign currency
exchange contracts.

For temporary or defensive purposes, when market or financial conditions
warrant, the Portfolio may at times invest substantially all of its assets in
securities issued by a single major developed country (e.g., the United States)
or in cash or cash equivalents, including money market instruments issued by
that country. In addition, the Portfolio may establish and maintain temporary
cash balances in U.S. and foreign short-term high-grade money market instruments
for defensive purposes or to take advantage of buying opportunities. Such
investments could result in the Portfolio not achieving its investment
objective.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

<PAGE>

- ----------
33
- --------------------------------------------------------------------------------

EURO RISK: The Portfolio may invest in securities issued by European
issuers. On January 1, 1999, 11 of the 15 member states of the European
Monetary Union ("EMU") introduced the "Euro" as a common currency. During a
three-year transitional period, the Euro will coexist with each
participating state's currency and, on July 1, 2002, the Euro is expected
to become the sole currency of the participating states. The introduction
of the Euro will result in the redenomination of European debt and equity
securities over a period of time, which may result in various legal and
accounting differences and/or tax treatments that otherwise would not
likely occur. During this period, the creation and implementation of
suitable clearing and settlement systems and other operational problems may
cause market disruptions that could adversely affect investments quoted in
the Euro.

PORTFOLIO TURNOVER RISK: The Portfolio's turnover rate was over 100% per year.
Higher portfolio turnover (e.g., over

---------------------------------------------------- EQ Advisors Trust

<PAGE>

INTERNATIONAL STOCK PORTFOLIOS (CONTINUED)

- ----------
34
- --------------------------------------------------------------------------------

100% per year) will cause the Portfolio to incur additional transaction costs
that could be passed through to shareholders.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last four calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one year and since
inception and compares the Portfolio's performance to: (i) the returns of a
broad-based index and (ii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance International Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance
International Portfolio) whose inception date is April 3, 1995. The assets of
the predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1996 ......................... 9.8%
1997 ......................... -2.98%
1998 ......................... 10.6%
1999 ......................... 37.78%

Best quarter (% and time period) Worst quarter (% and time period)
25.95% (1999 4th Quarter) (15.68)% (1998 3rd Quarter)
- ---------------------------------------------------------------------

- --------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------
SINCE
ONE YEAR INCEPTION
- --------------------------------------------------------
Alliance International
Portfolio - Class IA
Shares 37.31% 13.16%*
- --------------------------------------------------------
MSCI EAFE Index** 26.96% 13.11%
- --------------------------------------------------------
Lipper International Mutual
Funds Average** 42.88% 17.58%
- --------------------------------------------------------

* Since inception as of April 3, 1995.

** For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

<PAGE>

- ----------
35
- --------------------------------------------------------------------------------

SANDRA L. YEAGER has been responsible for the day-to-day management of the
Portfolio and its predecessor since January 1999. Ms. Yeager, a Senior Vice
President of Alliance, has been associated with Alliance since 1990.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS

- ----------
36
- --------------------------------------------------------------------------------

ALLIANCE HIGH YIELD PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve a high return by maximizing current
income and, to the extent consistent with that objective, capital appreciation.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in a diversified mix of high yield, fixed income
securities (so-called "junk bonds"), which generally involve greater volatility
of price and risk of principal and income than high quality fixed income
securities. Junk bonds generally have a higher current yield but are rated
either in the lower categories by NRSROs (i.e., rated Baa or lower by Moody's or
BBB or lower by S&P) or are unrated securities of comparable quality.

The Portfolio will attempt to maximize current income by taking advantage of
market developments, yield disparities and variations in the creditworthiness of
issuers. Substantially all of the Portfolio's investments will be income
producing.

The Portfolio may also make use of various other investment strategies,
including investments in common stocks and other equity-type securities (such as
convertible debt securities) and secured loans of its portfolio securities
without limitation in order to enhance its current return and to reduce
fluctuations in net asset value. The Portfolio may also use derivatives,
including: writing covered call and put options; purchasing call and put options
on individual fixed income securities, securities indexes and foreign
currencies; and purchasing and selling stock index, interest rate and foreign
currency futures contracts and options thereon. The Portfolio may also invest in
participations and assignments of loans originally made by institutional lenders
or lending syndicates.

The Portfolio will not invest more than 10% of its total assets in:

(i) fixed income securities which are rated lower than B3 or B- or their
equivalents by one NRSRO or if unrated are of equivalent quality as determined
by the Adviser; and

(ii) money market instruments of any entity which has an outstanding issue of
unsecured debt that is rated lower than B3 or B- or their equivalents by an
NRSRO or if unrated is of equivalent quality as determined by the Adviser;
however, this restriction will not apply to:

o fixed income securities which the Adviser believes have similar
characteristics to securities which are rated B3 or higher by Moody's or
B- or higher by S&P, or

o money market instruments of any entity that has an unsecured issue of
outstanding debt which the Adviser believes has similar characteristics to
securities which are so rated.

In the event that any securities held by the Portfolio fall below those ratings,
the Portfolio will not be obligated to dispose of such securities and may
continue to hold such securities if the Adviser believes that such investments
are considered appropriate under the circumstances.

The Portfolio may also invest in fixed income securities that are providing high
current yields because of risks other than credit, such as prepayment risks, in
the case of mortgage-backed securities, or currency risks, in the case of
non-U.S. dollar denominated foreign securities.

When market or financial conditions warrant, the Portfolio may also make
temporary investments in high-quality U.S. dollar-denominated money market
instruments. Such investment strategies could result in the Portfolio not
achieving its investment objective.

THE PRINCIPAL RISKS

JUNK BOND RISK: The Portfolio invests primarily in "junk bonds" or lower-rated
securities rated BBB or lower by S&P or an equivalent rating by any other NRSRO
or unrated securities of similar quality. Junk bonds have speculative elements
or are predominantly speculative credit risks, therefore, credit risk is
particularly significant for this Portfolio. Although junk bonds generally have
higher yields than debt securities with higher credit ratings, they are
high-risk investments that may not pay interest or return principal as
scheduled. Junk bonds generally are also less liquid and experience more price
volatility than higher rated fixed income securities. This Portfolio may also be
subject to

<PAGE>

- ----------
37
- --------------------------------------------------------------------------------

greater credit risk because it may invest in debt securities issued in
connection with corporate restructurings by highly leveraged issuers or in debt
securities not current in the payment of interest or principal, or in default.

FIXED INCOME RISK: This Portfolio invests primarily in fixed income securities,
therefore, the Portfolio's performance will be affected by changes in interest
rates, credit risks of the issuer, the duration and maturity of the Portfolio's
fixed income holdings, and adverse market and economic conditions. Other risks
that relate to the Portfolio's investment in fixed income securities include:

INTEREST RATE RISK: When interest rates rise, the value (i.e., share price
and total return) of the Portfolio's fixed income securities, particularly
those with longer durations or maturities, will go down. When interest
rates fall, the reverse is true.

MORTGAGE-BACKED SECURITIES RISK: Rising interest rates may cause the
duration of mortgage-backed securities to increase, making them even more
susceptible to interest rate changes. Falling interest rates may cause the
value and yield of mortgage-backed securities to fall. Falling interest
rates also may encourage borrowers to pay off their mortgages sooner than
anticipated (pre-payment). The Portfolio would need to reinvest the
pre-paid funds at the newer, lower interest rates.

LOAN PARTICIPATION AND ASSIGNMENT RISK: In addition to the risks associated with
fixed income investments generally, the Portfolio's investments in loan
participations and assignments are subject to the risk that the financial
institution acting as agent for all interests in a loan, might fail financially.
It is also possible that, under emerging legal theories of lender liability, the
Portfolio could be held liable as a co-lender.

SMALL CAP AND MID-CAP COMPANY RISK: The Portfolio's investments in small-cap and
mid-cap companies may be subject to more abrupt or erratic movements in price
than are those of larger, more established companies because: the securities of
such companies are less well-known; held primarily by insiders or institutional
investors and may trade less frequently and in lower volume; such companies are
more likely to experience greater or more unexpected changes in their earnings
and growth prospects; such companies have limited financial resources or may
depend on a few key employees; and the products or technologies of such
companies may be at a relatively early stage of development or not fully tested.

---------------------------------------------------- EQ Advisors Trust

<PAGE>
FIXED INCOME PORTFOLIOS (CONTINUED)

- ----------
38
- --------------------------------------------------------------------------------

SECURITIES LENDING RISK: This Portfolio may make secured loans of its portfolio
securities without restriction. The risk in lending portfolio securities, as
with other extensions of secured credit, consist of possible delay in receiving
additional collateral, or in the recovery of the securities or possible loss of
rights in the collateral should the borrower fail financially.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns of a
broad-based index and (ii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance High Yield Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance High Yield
Portfolio) whose inception date is January 2, 1987. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ----------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN*
- ----------------------------------------------------------------------

1990 ......................... -1.1%
1991 ......................... 24.5%
1992 ......................... 12.3%
1993 ......................... 23.2%
1994 ......................... -2.8%
1995 ......................... 19.9%
1996 ......................... 23.0%
1997 ......................... 18.5%
1998 ......................... -5.2%
1999 ......................... -3.35%

Best quarter (% and time period) Worst quarter (% and time period)
8.00% (1997 2nd Quarter) (10.97)% (1998 3rd Quarter)
- ----------------------------------------------------------------------

- ----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- ----------------------------------------------------------------------------
Alliance High Yield Portfolio
- Class IA Shares (3.35)% 9.86% 10.23%
- ----------------------------------------------------------------------------
CSFB Index*, ** 3.28% 9.07% 11.06%
- ----------------------------------------------------------------------------
ML Master* 1.57% 9.61% 10.79%
- ----------------------------------------------------------------------------
Lipper High Current Yield Bond
Funds Average* 3.83% 9.48% 10.15%
- ----------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities,

<PAGE>

- ----------
39
- --------------------------------------------------------------------------------

qualified and non-tax qualified corporate funds, public and private pension and
profit-sharing plans, foundations and tax-exempt organizations.

NELSON JANTZEN has been responsible for the day-to-day management of the
Portfolio since January 2000. Mr. Jantzen is a Senior Vice President and
Portfolio Manager in the Global High Yield Group and is responsible for the
management of domestic high yield securities. Mr. Jantzen joined Alliance in
1993.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ---------
40
- --------------------------------------------------------------------------------

ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve high current income consistent with
relative stability of principal through investment primarily in debt securities
issued or guaranteed as to principal and interest by the U.S. Government or its
agencies or instrumentalities.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in U.S. Government securities. The Portfolio may
also invest in repurchase agreements and forward commitments related to U.S.
Government securities and may also purchase debt securities of non-government
issuers that own mortgages.

Duration is a measure of the weighted average maturity of the bonds held by
the Portfolio and can be used by the Adviser as a measure of the
sensitivity of the market value of the Portfolio to changes in interest
rates. Generally, the longer the duration of the Portfolio, the more
sensitive its market value will be to changes in interest rates.

In some cases, the Adviser's calculation of duration will be based on
certain assumptions (including assumptions regarding prepayment rates, in
the mortgage-backed or asset-backed securities, and foreign and domestic
interest rates). As of December 31, 1999, the Adviser considered the
duration of a 10-year Treasury bond to be 7.3 years. The Portfolio's
investments will generally have a final maturity of not more than ten years
or a duration not exceeding that of a 10-year Treasury note.

The Portfolio buys and sells securities with a view to maximizing current return
without, in the opinion of the Adviser, undue risk to principal. Potential
capital gains resulting from possible changes in interest rates will not be a
major consideration. The Portfolio may take full advantage of a wide range of
maturities of U.S. Government securities and may adjust the dollar-weighted
average maturity of its portfolio from time to time, depending on the Adviser's
assessment of relative yields on securities of different maturities and the
expected effect of future changes in interest rates on the market value of the
securities held by the Portfolio. The Portfolio may also invest a substantial
portion of its assets in money market instruments.

In order to enhance its current return, to reduce fluctuations in net asset
value, and to hedge against changes in interest rates, the Portfolio may write
covered call and put options on U.S. Government securities and may purchase call
and put options on U.S. Government securities. The Portfolio may also enter into
interest rate futures contracts with respect to U.S. Government securities, and
may write and purchase options thereon. The Portfolio may also make secured
loans of its portfolio securities without limitation and enter into repurchase
agreement with respect to U.S. Government securities with commercial banks and
registered broker-dealers.

The Portfolio may also make use of various other investment strategies,
including covered short sales, and the purchase or sale of securities on a
when-issued, delayed delivery or forward commitment basis.

Under normal market conditions, the Portfolio will invest at least 65%, and
expects to invest at least 80%, of its total assets in U.S. Government
securities and repurchase agreements and forward commitments relating to U.S.
Government securities. U.S. Government securities include:

o U.S. Treasury Bills: Direct obligations of the U.S. Treasury which are
issued in maturities of one year or less.

o U.S. Treasury Notes: Direct obligations of the U.S. Treasury issued in
maturities which vary between one and ten years, with interest payable
every six months.

<PAGE>

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41
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o U.S. Treasury Bonds: Direct obligations of the U.S. Treasury which are
issued in maturities more than ten years from the date of issue, with
interest payable every six months.

o "Ginnie Maes": Debt securities issued by a mortgage banker or other
mortgagee and represent an interest in a pool of mortgages insured by the
Federal Housing Administration or the Farmer's Home Administration or
guaranteed by the Veteran's Administration. The Government National
Mortgage Association ("GNMA") guarantees the timely payment of principal
and interest. Ginnie Maes, although not direct obligations of the U.S.
Government, are guaranteed by the U.S. Treasury.

o "Fannie Maes": The Federal National Mortgage Association ("FNMA") is a
government-sponsored corporation owned entirely by private stockholders
that purchases residential mortgages from a list of approved
seller/servicers. Pass-through securities issued by FNMA are guaranteed as
to timely payment of principal and interest by FNMA and supported by
FNMA's right to borrow from the U.S. Treasury, at the discretion of the
U.S. Treasury. Fannie Maes are not backed by the full faith and credit of
the U.S. Government.

o "Freddie Macs": The Federal Home Loan Mortgage Corporation ("FHLMC"), a
corporate instrumentality of the U.S. Government, issues participation
certificates ("PCs") which represent an interest in residential mortgages
from FHLMC's National Portfolio. FHLMC guarantees the timely payment of
interest and ultimate collection of principal, but PCs are not backed by
the full faith and credit of the U.S. Government.

o Governmental Collateralized Mortgage Obligations: These are securities
issued by a U.S. Government instrumentality or agency which are backed by
a portfolio of mortgages or mortgage-backed securities held under an
indenture.

o "Sallie Maes": The Student Loan Marketing Association ("SLMA") is a
government-sponsored corporation owned entirely by private stockholders
that provides liquidity for banks and other institutions engaged in the
Guaranteed Student Loan Program. These loans are either directly
guaranteed by the U.S. Treasury or guaranteed by state agencies and
reinsured by the U.S. Government. SLMA issues both short term notes and
longer term public bonds to finance its activities.

The Portfolio may also invest in "zero coupon" U.S. Government securities which
have been stripped of their unmatured interest coupons and receipts or in
certificates representing undivided interests in such stripped U.S. Government
securities and coupons. These securities tend to be more volatile than other
types of U.S. Government securities.

Guarantees of the Portfolio's U.S. Government securities guarantee only the
payment of principal at maturity and interest when due on the guaranteed
securities, and do not guarantee the securities' yield or value or the
yield or value of the Portfolio's shares.

The Portfolio may also purchase collateralized mortgage obligations ("CMOs")
issued by non-governmental issuers and securities issued by a real estate
mortgage investment conduits ("REMICs"), but only if they are collateralized by
U.S. Government securities. However, CMOs issued by entities other than U.S.
Government agencies and instrumentalities and securities issued by REMICs are
not considered U.S. Government securities for purposes of the Portfolio meeting
its policy of investing at least 65% of its total assets in U.S. Government
securities.

THE PRINCIPAL RISKS

FIXED INCOME RISK: This Portfolio invests primarily in fixed income securities,
therefore, the Portfolio's performance will be affected by changes in interest
rates, the duration and maturity of the Portfolio's fixed income holdings, and
adverse market and economic conditions. Other risks that relate to the
Portfolio's investment in fixed income securities include:

ASSET-BACKED SECURITIES RISK: The Portfolio's investments in asset-backed
securities represent interests

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ---------
42
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in pools of consumer loans such as credit card receivables, automobile
loans and leases, leases on equipment such as computers, and other
financial instruments and are subject to certain additional risks. Rising
interest rates tend to extend the duration of asset-backed securities,
making them more sensitive to changes in interest rates. As a result, in a
period of rising interest rates, the Portfolio may exhibit additional
volatility. When interest rates are declining, there are usually more
prepayments of loans which will shorten the life of these securities.
Prepayments also vary based on among other factors, general economic
conditions and other demographic conditions. The reinvestment of cash
received from prepayments will, therefore, usually be at a lower interest
rate than the original investment, lowering the Portfolio's yield.

INVESTMENT GRADE SECURITIES RISK: With respect to fixed income investments
of the Portfolio, other than U.S. Government securities, rated BBB by S&P
or an equivalent rating by any other nationally recognized statistical
rating organization ("NRSRO"), the Portfolio could lose money if the issuer
or guarantor of a debt security or counterparty to a Portfolio's
transaction is unable or unwilling to make timely principal and/or interest
payments, or to honor its financial obligations. Investment grade
securities which are rated BBB by S&P, or an equivalent rating by any other
NRSRO, are somewhat riskier than higher rated obligations because they are
regarded as having only an adequate capacity to pay principal and interest,
are considered to lack outstanding investment characteristics, and may be
speculative.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last eight calendar years and some of the risks of investing in the
Portfolio by showing yearly changes in the Portfolio's performance. The table
below shows the Portfolio's average annual total returns for the past one year,
five years and since inception and compares the Portfolio's performance to: (i)
the returns of a broad-based index and (ii) the returns of an index of funds

<PAGE>

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43
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with similar investment objectives. Past performance is not an indication of
future performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Intermediate Government
Securities Portfolio) managed by the Adviser using the same investment
objectives and strategy as the Portfolio. For these purposes, the Portfolio is
considered to be the successor entity to the predecessor registered investment
company (HRT/Alliance Intermediate Government Securities Portfolio) whose
inception date is April 1, 1991. The assets of the predecessor were transferred
to the Portfolio on October 18, 1999. Following that transfer, the performance
shown (for the period October 19, 1999 through December 31, 1999) is that of the
Portfolio. For these purposes, the performance results of the Portfolio and its
predecessor registered investment company have been linked.

- ----------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN*
- ----------------------------------------------------------------------

1992 ......................... 5.5%
1993 ......................... 10.6%
1994 ......................... -4.4%
1995 ......................... 13.3%
1996 ......................... 3.8%
1997 ......................... 7.3%
1998 ......................... 7.7%
1999 ......................... 0.02%

Best quarter (% and time period) Worst quarter (% and time period)
5.31% (1991 3rd Quarter) (2.96)% (1994 1st Quarter)
- ----------------------------------------------------------------------

- ---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- ---------------------------------------------------------------------------
SINCE
ONE YEAR FIVE YEARS INCEPTION
- ---------------------------------------------------------------------------
Alliance Intermediate
Government Securities
Portfolio - Class IA Shares 0.02% 6.34% 6.26%
- ---------------------------------------------------------------------------
Lehman Intermediate
Government Bonds* 0.49% 6.93% 6.76%
- ---------------------------------------------------------------------------
Lipper Intermediate Government
Funds Average* (2.13)% 6.94% 6.84%
- ---------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

JEFFREY S. PHLEGAR has been responsible for the day-to-day management of the
Portfolio and its predecessor since January 1999. Mr. Phlegar, a Senior Vice
President of Alliance, has been associated with Alliance for the past five
years.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ----------
44
- --------------------------------------------------------------------------------

ALLIANCE MONEY MARKET PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to obtain a high level of current income, preserve
its assets and maintain liquidity.

THE INVESTMENT STRATEGY

The Portfolio invests primarily in a diversified portfolio of high-quality U.S.
dollar-denominated money market instruments. The Portfolio will maintain a
dollar-weighted average portfolio maturity of 90 days or less.

The instruments in which the Portfolio invests include:

o marketable obligations of, or guaranteed as to the timely payment of
principal and interest by, the U.S. Government, its agencies or
instrumentalities ("U.S. Government Securities");

o certificates of deposit, bankers' acceptances, bank notes, time deposits and
interest bearing savings deposits issued or guaranteed by:

(a) domestic banks (including their foreign branches) or savings and loan
associations having total assets of more than $1 billion and which are FDIC
members in the case of banks, or insured by the FDIC, in the case of
savings and loan associations; or

(b) foreign banks (either by their foreign or U.S. branches) having total
assets of at least $5 billion and having an issue of either (i) commercial
paper rated at least A-1 by S&P or Prime-1 by Moody's or (ii) long term
debt rated at least AA by S&P or Aa by Moody's;

o commercial paper (rated at least A-1 by S&P or Prime-1 by Moody's or, if not
rated, issued by domestic or foreign companies having outstanding debt
securities rated at least AA by S&P or Aa by Moody's) and participation
interests in loans extended by banks to such companies;

o mortgage-backed and asset-backed securities that have remaining maturities
of less than one year;

o corporate debt obligations with remaining maturities of less than one year,
rated at least AA by S&P or Aa by Moody's, as well as corporate debt
obligations rated at least A by S&P or Moody's, provided the corporation
also has outstanding an issue of commercial paper rated at least A-1 by
S&P or Prime-1 by Moody's;

o floating rate or master demand notes; and

o repurchase agreements covering U.S. Government securities.

If the Adviser believes a security held by the Portfolio is no longer deemed to
present minimal credit risk, the Portfolio will dispose of the security as soon
as practicable unless the Board of Trustees determines that such action would
not be in the best interest of the Portfolio.

Purchases of securities that are unrated must be ratified by the Board of
Trustees. Because the market value of debt obligations fluctuates as an inverse
function of changing interest rates, the Portfolio seeks to minimize the effect
of such fluctuations by investing only in instruments with a remaining maturity
of 397 calendar days or less at the time of investment, except for obligations
of the U.S. Government, which may have a remaining maturity of 762 calendar days
or less. Time deposits with maturities greater than seven days are considered to
be illiquid securities.

The Portfolio may make use of various other investment strategies, including
investing up to 20% of its total assets in U.S. dollar-denominated money market
instruments of foreign issuers and making secured loans of up to 50% of its
total portfolio securities.

THE PRINCIPAL RISKS

MONEY MARKET RISK: While money market funds are designed to be relatively low
risk investments, they are not entirely free of risk. Despite the short
maturities and high credit quality of the Portfolio's investments, increases in
interest rates and deteriorations in the credit quality of the instruments the
Portfolio has purchased may reduce the Portfolio's net asset value. In addition,
the Portfolio is still subject to the risk that the value of an investment may
be eroded over time by inflation. An investment in the Portfolio is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.

<PAGE>

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45
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Although the Portfolio seeks to preserve the value of your investment, it is
possible to lose money by investing in the Portfolio.

ASSET-BACKED SECURITIES RISK: The Portfolio's investments in asset-backed
securities represent interests in pools of consumer loans such as credit card
receivables, automobile loans and leases, leases on equipment such as computers,
and other financial instruments and are subject to certain additional risks.
Rising interest rates tend to extend the duration of asset-backed securities,
making them more sensitive to changes in interest rates. As a result, in a
period of rising interest rates, the Portfolio may exhibit additional
volatility. When interest rates are declining, there are usually more
prepayments of loans which will shorten the life of these securities.
Prepayments also vary based on among other factors, general economic conditions
and other demographic conditions. The reinvestment of cash received from
prepayments will, therefore, usually be at a lower interest rate than the
original investment, lowering the Portfolio's yield.

LEVERAGING RISK: When the Portfolio borrows money or otherwise leverages its
portfolio, the value of an investment in the Portfolio will be more volatile and
all other risks will tend to be compounded.

FOREIGN SECURITIES RISK: The Portfolio's investments in foreign securities
involve risks not associated with investing in U.S. securities, which can
adversely affect the Portfolio's performance. Foreign markets, particularly
emerging markets, may be less liquid, more volatile, and subject to less
government supervision than domestic markets. There may be difficulties
enforcing contractual obligations, and it may take more time for trades to clear
and settle. In addition, the value of foreign investments can be adversely
affected by: inadequate or inaccurate information about foreign companies;
higher transaction, brokerage and custody costs; expropriation or
nationalization; adverse changes in foreign economic and tax policies; and
foreign government instability, war or other adverse political or economic
actions.

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns on
three-month U.S. Treasury bills and (ii) the returns of an index of funds with
similar investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Money Market Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Money
Market Portfolio) whose inception date is July 13, 1981. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

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46
- --------------------------------------------------------------------------------

- ------------------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN*
- ------------------------------------------------------------------------------

1990 ......................... 8.2%
1991 ......................... 6.2%
1992 ......................... 3.6%
1993 ......................... 3.0%
1994 ......................... 4.0%
1995 ......................... 5.7%
1996 ......................... 5.3%
1997 ......................... 5.4%
1998 ......................... 5.3%
1999 ......................... 4.96%

Best quarter (% and time period) Worst quarter (% and time period)
2.08% (1990 4th Quarter) .46% (2000 1st Quarter)

The Portfolio's 7-day yield for the quarter ended December 31, 1999 was 5.30%.
- ------------------------------------------------------------------------------

- --------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- --------------------------------------------------------------------------
Alliance Money Market Portfolio
- Class IA Shares 4.96% 5.36% 5.16%
- --------------------------------------------------------------------------
3-Month Treasury Bill 4.74% 5.20% 5.06%
- --------------------------------------------------------------------------
Lipper Money Market Mutual
Fund Average* 4.75% 5.13% 4.87%
- --------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

RAYMOND J. PAPERA has been responsible for the day-to-day management of the
Portfolio and its predecessor since 1990. Mr. Papera, a Senior Vice President of
Alliance, has been associated with Alliance since 1990.

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ----------
47
- --------------------------------------------------------------------------------

ALLIANCE QUALITY BOND PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve high current income consistent with
preservation of capital by investing primarily in investment grade fixed income
securities.

THE INVESTMENT STRATEGY

The Portfolio expects to invest in readily marketable securities with relatively
attractive yields that the Adviser believes do not involve undue risk.

The Portfolio will follow a policy of investing at least 65% of its total assets
in securities which are rated at the time of purchase at least Baa by Moody's or
BBB by S&P, or in unrated fixed income securities that the Adviser determines to
be of comparable quality.

In the event that the credit rating of a security held by the Portfolio falls
below investment grade (or, in the case of unrated securities, the Adviser
determines that the quality of such security has deteriorated below investment
grade), the Portfolio will not be obligated to dispose of such security and may
continue to hold the obligation if the Adviser believes such an investment is
appropriate in the circumstances. The Portfolio will also seek to maintain an
average aggregate quality rating of its portfolio securities of at least A
(Moody's and S&P).

The Portfolio has complete flexibility as to the types of securities in which it
will invest and the relative proportions thereof. In this regard, the Portfolio
plans to vary the proportions of its holdings of long- and short-term fixed
income securities (including debt securities, convertible debt securities and
U.S. Government obligations), preferred stocks and dividend-paying common stocks
in order to reflect the Adviser's assessment of prospective cyclical changes
even if such action may adversely affect current income.

The Portfolio may also invest in foreign securities, although it will not invest
more than 20% of its total assets in securities denominated in currencies other
than the U.S. dollar. The Portfolio may enter into foreign currency futures
contracts (and related options), forward foreign currency exchange contracts and
options on foreign currencies for hedging purposes.

The Portfolio may also make use of various other investment strategies,
including zero coupon pay-in-kind securities, collateralized mortgage
obligations, securities lending with a value of up to 50% of its total assets,
the purchase or sale of securities on a when-issued, delayed delivery or forward
commitment basis and repurchase agreements. The Portfolio may also use
derivatives, including: purchasing put and call options and writing covered put
and call options on securities it may purchase. The Portfolio also intends to
write covered call options for cross-hedging purposes, which are designed to
provide a hedge against a decline in value of another security which the
Portfolio owns or has the right to acquire.

The Portfolio may seek to protect the value of its investments from interest
rate fluctuations by entering into various hedging transactions, such as
interest rate swaps and the purchase or sale of interest rate caps and floors.

When market or financial conditions warrant, the Portfolio may invest in certain
money market instruments for temporary or defensive purposes. Such investments
could result in the Portfolio not achieving its investment objective.

THE PRINCIPAL RISKS

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ----------
48
- --------------------------------------------------------------------------------

INVESTMENT GRADE SECURITIES RISK: The Portfolio could lose money if the
issuer or guarantor of a debt security or counterparty to a Portfolio's
transaction is unable or unwilling to make timely principal and/or interest
payments, or to honor its financial obligations. Investment grade
securities which are rated BBB or S&P or an equivalent rating by any other
nationally recognized statistical rating organization, are somewhat riskier
than higher rated obligations because they are regarded as having only an
adequate capacity to pay principal and interest, are considered to lack
outstanding investment characteristics, and may be speculative.

ZERO COUPON AND PAY-IN-KIND SECURITIES RISK: A zero coupon or pay-in-kind
security pays no interest in cash to its holder during its life.
Accordingly, zero coupon securities usually trade at a deep discount from
their face or par value and, together with pay-in-kind securities, will be
subject to greater fluctuations in market value in response to changing
interest rates than debt obligations of comparable maturities that make
current distributions of interest in cash.

<PAGE>

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49
- --------------------------------------------------------------------------------

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last six calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one and five years and
compares the Portfolio's performance to: (i) the returns of a broad-based index
and (ii) the returns of an index of funds with similar investment objectives.
Past performance is not an indication of future performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Quality Bond Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Quality
Bond Portfolio) whose inception date is October 1, 1993. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ----------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN*
- ----------------------------------------------------------------------

1994 ......................... -5.1%
1995 ......................... 17.0%
1996 ......................... 5.4%
1997 ......................... 9.1%
1998 ......................... 8.7%
1999 ......................... -2.00%

Best quarter (% and time period) Worst quarter (% and time period)
6.19% (1995 2nd Quarter) (4.04)% (1994 1st Quarter)
- ----------------------------------------------------------------------

- ------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS*
- ------------------------------------------------------------------------------
SINCE
ONE YEAR FIVE YEARS INCEPTION
- ------------------------------------------------------------------------------
Alliance Quality Bond Portfolio
- Class IA Shares (2.00)% 7.47% 4.96%*
- ------------------------------------------------------------------------------
Lehman Aggregate Bonds** (0.82)% 7.73% 5.64%
- ------------------------------------------------------------------------------
Lipper Corporate Debt Funds
BBB Rated Average** (1.62)% 7.83% 5.32%
- ------------------------------------------------------------------------------

* Since inception as of October 1, 1993.

** For more information on this index, see the preceding section "The
Benchmarks."

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

FIXED INCOME PORTFOLIOS (CONTINUED)

- ----------
50
- --------------------------------------------------------------------------------

MATTHEW BLOOM has been responsible for the day-to-day management of the
Portfolio and its predecessor since 1995. Mr. Bloom, a Senior Vice President of
Alliance, has been associated with Alliance since 1989.

<PAGE>

BALANCED/HYBRID PORTFOLIOS

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51
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EQ/BALANCED PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve a high return through both appreciation
of capital and current income.

THE INVESTMENT STRATEGY

The Portfolio invests varying portions of its assets primarily in
publicly-traded equity and debt securities and money market instruments
depending on economic conditions, the general level of common stock prices,
interest rates and other relevant considerations, including the risks associated
with each investment medium.

The Portfolio attempts to achieve long-term growth of capital by investing in
common stock and other equity-type instruments. It will try to achieve a
competitive level of current income and capital appreciation through investments
in publicly traded debt securities and a high level of current income through
investments primarily in high-quality U.S. dollar denominated money market
instruments.

The Portfolio's investments in common stocks will primarily consist of common
stocks that are listed on national securities exchanges. Smaller amounts will be
invested in stocks that are traded over-the-counter and in other equity-type
securities. The Portfolio may also invest up to 20% of its total assets in
securities of issuers domiciled outside the United States and not included in
the S&P 500 (i.e., foreign securities).

The Portfolio at all times will hold at least 25% of its total assets in fixed
income securities (including, for these purposes, that portion of the value of
securities convertible into common stock which is attributable to the fixed
income characteristics of those securities, as well as money market
instruments). The Portfolio's equity securities will always comprise at least
25%, but never more than 75%, of the Portfolio's total assets. Consequently, the
Portfolio will have a minimum or "core holdings" of at least 25% fixed income
securities and 25% equity securities. Over time, holdings are expected to
average approximately 50% in fixed income securities and approximately 50% in
equity securities. Asset mixes will periodically be rebalanced by the Manager to
maintain the expected asset mix.

The Portfolio may also invest up to 20% of its total assets in foreign
securities (which may include American depositary receipts and other depositary
arrangements) and may also make use of various other investment strategies,
including using up to 50% of its total portfolio assets for securities lending
purposes. The Portfolio may also use derivatives, including: writing covered
call and put options, purchasing call and put options on all the types of
securities in which it may invest, as well as securities indexes and foreign
currencies. The Portfolio may also purchase and sell stock index, interest rate
and foreign currency futures contracts and options thereon.

The debt securities will consist principally of bonds, notes, debentures and
equipment trust certificates, as well as debt securities with equity features
such as conversion or exchange rights or warrants for the acquisition of stock
or participations based on revenues, rates or profits. These debt securities
will principally be investment grade securities rated at least Baa by Moody's or
BBB by S&P, or will be U.S. Government Securities. If such Baa or BBB debt
securities held by the Portfolio fall below those ratings, the Portfolio will
not be obligated to dispose of them and may continue to hold them if an Adviser
considers them appropriate investments under the circumstances. In addition, the
Portfolio may at times hold some of its assets in cash.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

MULTIPLE-ADVISER RISK: The EQ/Balanced Portfolio employs multiple Advisers. Each
of the Advisers independently chooses and maintains a portfolio of common stocks
for the Portfolio and each is responsible for investing a specific allocated
portion of the Portfolio's assets. Because each Adviser will be managing its
allocated portion of the Portfolio independently from the other

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

- ----------
52
- --------------------------------------------------------------------------------

Advisers, the same security may be held in two different portions of the
Portfolio, or may be acquired for one portion of the Portfolio at a time when
the Adviser of another portion deems it appropriate to dispose of the security
from that other portion. Similarly, under some market conditions, one Adviser
may believe that temporary, defensive investments in short-term instruments or
cash are appropriate when the other Adviser or Advisers believe continued
exposure to the equity markets is appropriate for their portions of the
Portfolio. Because each Adviser directs the trading for its own portion of the
Portfolio, and does not aggregate its transactions with those of the other
Advisers, the Portfolio may incur higher brokerage costs than would be the case
if a single Adviser were managing the entire Portfolio.

ASSET ALLOCATION RISK: In addition to the risks associated with the securities
in which the Portfolio invests, the Portfolio is subject to the risk that the
actual allocation of the Portfolio's assets between debt and equity securities
may adversely affect the Portfolio's value between the Manager's periodic
rebalancing.

FIXED INCOME RISK: This Portfolio invests at least 25% of its total assets in
fixed income securities, therefore, the Portfolio's performance will be affected
by changes in interest rates, credit risks of the issuer, the duration and
maturity of the Portfolio's fixed income holdings, and adverse market and
economic conditions. Other risks that relate to the Portfolio's investment in
fixed income securities include:

INVESTMENT GRADE SECURITIES RISK: The Portfolio could lose money if the
issuer or guarantor of a debt security or counterparty to a Portfolio's
transaction is unable or unwilling to make timely principal and/or interest
payments, or to honor its financial obligations. Investment grade
securities which are rated BBB by S&P or an equivalent rating by any other
NRSRO, are somewhat riskier than higher rated obligations because they are
regarded as having only an adequate capacity to pay principal and interest,
are considered to lack outstanding investment characteristics, and may be
speculative.

<PAGE>

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53
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PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one, five and ten
years and compares the Portfolio's performance to: (i) the returns of a
broad-based index; (ii) the returns of a "blended" index of equity and fixed
income securities; and (iii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Balanced Portfolio)
managed by the Adviser using the same investment objectives and strategy as the
Portfolio. For these purposes, the Portfolio is considered to be the successor
entity to the predecessor registered investment company (HRT/Alliance Balanced
Portfolio) whose inception date is January 27, 1986. The assets of the
predecessor were transferred to the Portfolio on October 18, 1999. Following
that transfer, the performance shown (for the period October 19, 1999 through
December 31, 1999) is that of the Portfolio. For these purposes, the performance
results of the Portfolio and its predecessor registered investment company have
been linked.

- ----------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ----------------------------------------------------------------------

1990 ......................... 0.3%
1991 ......................... 41.3%
1992 ......................... -2.8%
1993 ......................... 12.3%
1994 ......................... -8.0%
1995 ......................... 19.8%
1996 ......................... 11.7%
1997 ......................... 15.1%
1998 ......................... 18.1%
1999 ......................... 17.79%

Best quarter (% and time period) Worst quarter (% and time period)
15.13% (1991 4th Quarter) (8.29)% (1990 3rd Quarter)
- ----------------------------------------------------------------------

- ------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- ----------------------------------------------------------------------
EQ/Balanced Portfolio - Class
IA Shares 17.79% 16.44% 11.77%
- ----------------------------------------------------------------------
50% S&P 500 Index/50%
Lehman Gov't/Corp.*,** 9.07% 17.93% 13.04%
- ----------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 18.21%
- ----------------------------------------------------------------------
Lipper Flex. Port. Average* 12.07% 17.11% 12.94%
- ----------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."
** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

In accordance with the Multi-Manager Order, the Manager may, among other things,
select new or additional Advisers for the Portfolio and may allocate and
re-allocate the Portfolio's assets among Advisers. Currently, Alliance Capital
Management, L.P., Capital Guardian Trust Company, Prudential Investments Fund
Management LLC and Jennison

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

- ----------
54
- --------------------------------------------------------------------------------

Associates LLC have been selected by the Manager to serve as Advisers for this
Portfolio. It is anticipated that additional Advisers may be added in the
future.

The portfolio manager responsible for that portion of the Portfolio's total
assets that will be advised by Alliance as an Adviser is as follows:

ROBERT G. HEISTERBERG has been responsible for the day-to-day management of
the Portfolio and its predecessor since February 12, 1996. Mr. Heisterberg,
a Senior Vice President of Alliance and Global Economic Policy Analysis,
has been associated with Alliance since 1977.

CAPITAL GUARDIAN TRUST COMPANY: ("Capital Guardian"), 333 South Hope Street, Los
Angeles, CA 90071. Capital Guardian is a wholly-owned subsidiary of Capital
Group International, Inc., which itself is a wholly owned subsidiary of The
Capital Group Companies, Inc. Capital Guardian has been providing investment
management services since 1968 and manages approximately $123 billion as of
December 31, 1999.

Capital Guardian uses a multiple portfolio manager system under which the assets
of the Portfolio for which Capital Guardian serves as Adviser are divided into
several segments. Each segment is individually managed with the portfolio
manager free to decide on company and industry selections as well as valuation
and transaction assessment. An additional portion of the Portfolio's total
assets allocated to Capital Guardian as Adviser is managed by a group of
investment research analysts.

The individual portfolio managers of each segment of the Portfolio's total
assets that will be advised by Capital Guardian as an Adviser, other than that
managed by the group of research analysts, are as follows:

DONNALISA P. BARNUM. Donnalisa Barnum is a Senior Vice President and a
portfolio manager for Capital Guardian. She joined the Capital Guardian
organization in 1986.

MICHAEL R. ERICKSON. Michael Erickson is a Senior Vice President and
portfolio manager for Capital Guardian and a Senior Vice President and
Director for Capital International Limited. He joined the Capital Guardian
organization in 1987.

DAVID I. FISHER. David Fisher is Chairman of the Board of Capital Group
International, Inc. and Capital Guardian. He joined the Capital Guardian
organization in 1969.

THEODORE R. SAMUELS. Theodore Samuels is a Senior Vice President and a
Director for Capital Guardian, as well as a Director of Capital
International Research, Inc. He joined the Capital Guardian organization in
1981.

EUGENE P. STEIN. Eugene Stein is Executive Vice President, a Director, a
portfolio manager, and

<PAGE>

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55
- --------------------------------------------------------------------------------

Chairman of the Investment Committee for Capital Guardian. He joined the
Capital Guardian organization in 1972.

TERRY BERKEMEIER. Terry Berkemeier is a Vice President of Capital
International Research, Inc. with U.S. equity portfolio management
responsibility in Capital Guardian Trust Company and research
responsibilities for the global metals and mining industries. He joined the
Capital Guardian organization in 1992.

PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC ("PIFM"), Gateway Center Three, 100
Mulberry Street, Newark, New Jersey 07102 was added as an Adviser to the
Portfolio as of May 1, 2000. PIFM and its predecessors have served as manager or
administrator to investment companies since 1987. As of October 31, 1999, PIFM
served as either the manager or administrator to various investment companies,
with aggregate assets of approximately $72 billion.

JENNISON ASSOCIATES LLC ("Jennison"), 466 Lexington Avenue, New York, New York
10017 was added as an Adviser to the Portfolio as of May 1, 2000. PIFM
supervises Jennison. Jennison has served as an investment adviser to investment
companies since 1990 and manages approximately $48.4 billion in assets as of
September 30, 1999.

The individual portfolio managers for that portion of the Portfolio's total
assets that will be advised by PIFM as an Adviser and Jennison are as
follows:

MICHAEL A. DEBALSO. Michael A. DeBalso is a Director, Executive Vice
President, Director of Equity Research and Equity Portfolio Manager of
Jennison. Mr. DeBalso joined Jennison in 1972.

KATHLEEN A. MCCARRAGHER. Ms. McCarragher is a Director, Executive Vice
President, Domestic Growth Equity Investment Strategist and Equity
Portfolio Manager of Jennison. Ms. McCarragher joined Jennison in 1998.
From 1992-1998, she was a Managing Director and Director of Large Cap
Growth Equities at Weiss, Peck & Greer.

PIFM and Jennison are wholly-owned subsidiaries of The Prudential Insurance
Company of America.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

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56
- --------------------------------------------------------------------------------

ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve a high total return without, in the
opinion of the Adviser, undue risk to principal.

THE INVESTMENT STRATEGY

The Portfolio invests varying portions of its assets in high quality,
publicly-traded fixed income securities (including money market instruments and
cash) and publicly-traded common stocks and other equity securities of U.S. and
non-U.S. issuers.

The Portfolio will at all times hold at least 40% of its assets in investment
grade fixed income securities, each having a duration, as determined by the
Adviser, that is less than that of a 10-year Treasury bond (the "fixed income
core"). The Portfolio is generally expected to hold approximately 70% of its
assets in fixed income securities (including the fixed income core) and 30% in
equity securities. Actual asset mixes will be adjusted in response to economic
and credit market cycles. The fixed income asset class will always comprise at
least 50%, but never more than 90%, of the Portfolio's total assets. The equity
class will always comprise at least 10%, but never more than 50%, of the
Portfolio's total assets.

All debt securities held by the Portfolio will be of investment grade (i.e.,
rated at least BBB by S&P or Baa by Moody's) or unrated securities of comparable
quality as determined by the Adviser. The equity securities invested in by the
Portfolio will consist primarily of common stock (including convertible
securities). The Portfolio may also invest in stocks that are traded
over-the-counter and in other equity-type securities. No more than 15% of the
Portfolio's assets will be invested in securities of non-U.S. issuers.

The Portfolio may also make use of various other investment strategies and
derivatives. Up to 50% of its total assets may be used for securities lending
purposes.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

ASSET ALLOCATION RISK: In addition to the risks associated with the securities
in which the Portfolio invests, the Portfolio is subject to the risk that the
Adviser's allocation of the Portfolio's assets between debt and equity
securities may adversely affect the Portfolio's value.

<PAGE>

- ----------
57
- --------------------------------------------------------------------------------

income holdings, and adverse market and economic conditions. Other risks that
relate to the Portfolio's investment in fixed income securities include:

INVESTMENT GRADE SECURITIES RISK: The Portfolio could lose money if the
issuer or guarantor of a debt security or counterparty to a Portfolio's
transaction is unable or unwilling to make timely principal and/or interest
payments, or to honor its financial obligations. Investment grade
securities which are rated BBB by S&P or an equivalent rating by any other
NRSRO, are somewhat riskier than higher rated obligations because they are
regarded as having only an adequate capacity to pay principal and interest,
are considered to lack outstanding investment characteristics, and may be
speculative.

MORTGAGE BACKED SECURITIES RISK: Rising interest rates may cause the
duration of mortgage-backed securities to increase, making them even more
susceptible to interest rate changes. Falling interest rates may cause the
value and yield of mortgage-backed securities to fall. Falling interest
rates also may encourage borrowers to pay off their mortgages sooner than
anticipated (pre-payment). The Portfolio would need to reinvest the
pre-paid funds at the newer, lower interest rates.

LIQUIDITY RISK: Certain securities held by the Portfolio may be difficult (or
impossible) to sell at the time and at the price the seller would like, which
may cause the Portfolio to lose money or be prevented from earning capital
gains.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

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58
- --------------------------------------------------------------------------------

PORTFOLIO PERFORMANCE

The bar chart below illustrates the Portfolio's annual total returns for each of
the last ten calendar years and some of the risks of investing in the Portfolio
by showing yearly changes in the Portfolio's performance. The table below shows
the Portfolio's average annual total returns for the past one year, five years
and since inception and compares the Portfolio's performance to: (i) the returns
of a broad-based index; (ii) the returns of a "blended" index of fixed income
and equity securities; and (iii) the returns of an index of funds with similar
investment objectives. Past performance is not an indication of future
performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Conservative Investors
Portfolio) managed by the Adviser using the same investment objectives and
strategy as the Portfolio. For these purposes, the Portfolio is considered to be
the successor entity to the predecessor registered investment company
(HRT/Alliance Conservative Investors Portfolio) whose inception date is October
2, 1989. The assets of the predecessor were transferred to the Portfolio on
October 18, 1999. Following that transfer, the performance shown (for the period
October 19, 1999 through December 31, 1999) is that of the Portfolio. For these
purposes, the performance results of the Portfolio and its predecessor
registered investment company have been linked.

- ----------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN*
- ----------------------------------------------------------------------

1990 ......................... 6.3%
1991 ......................... 19.8%
1992 ......................... 5.6%
1993 ......................... 10.8%
1994 ......................... -4.1%
1995 ......................... 20.4%
1996 ......................... 5.2%
1997 ......................... 13.3%
1998 ......................... 13.9%
1999 ......................... 10.4%

Best quarter (% and time period) Worst quarter (% and time period)
- ----------------------------------------------------------------------
7.65% (1998 4th Quarter) (3.21)% (1994 1st Quarter)

- ---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- ---------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- ---------------------------------------------------------------------
Alliance Conservative
Investors Portfolio -
Class IA Shares 10.14% 12.47% 9.94%
- ---------------------------------------------------------------------
70% Lehman Treasury/30%
S&P 500 Index*, ** 4.19% 13.60% 10.75%
- ---------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 18.21%
- ---------------------------------------------------------------------
Lipper Income Average* 4.65% 14.57% 10.84%
- ---------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."

** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

ROBERT G. HEISTERBERG has been responsible for the day-to-day management of the
Portfolio and its predecessor

<PAGE>

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59
- --------------------------------------------------------------------------------

since February 12, 1996. Mr. Heisterberg, a Senior Vice President of Alliance
and Global Economic Policy Analysis, has been associated with Alliance since
1977.

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

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60
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ALLIANCE GROWTH INVESTORS PORTFOLIO

INVESTMENT OBJECTIVE: Seeks to achieve the highest total return consistent with
the Adviser's determination of reasonable risk.

THE INVESTMENT STRATEGY

The Portfolio allocates varying portions of its assets to a number of asset
classes. The fixed income asset class will always comprise at least 10%, but
never more than 60%, of the Portfolio's total assets. The equity class will
always comprise at least 40%, but never more than 90%, of the Portfolio's total
assets. Over time, the Portfolio's holdings, on average, are expected to be
allocated 70% to equity securities and 30% to debt securities. Actual asset
mixes will be adjusted in response to economic and credit market cycles.

The Portfolio's investments in equity securities will include both
exchange-traded and over-the-counter common stocks and other equity securities,
including foreign stocks, preferred stocks, convertible debt instruments, as
well as securities issued by small-and mid-sized companies that have favorable
growth prospects.

The Portfolio's debt securities may include foreign debt securities, investment
grade fixed income securities (including cash and money market instruments) as
well as lower quality, higher yielding debt securities (junk bonds). The
Portfolio may also make use of various other investment strategies and
derivatives. Up to 50% of its total assets may be used for securities lending
purposes. No more than 30% of the Portfolio's assets will be invested in
securities of foreign issuers.

THE PRINCIPAL RISKS

This Portfolio invests in common stocks, therefore, its performance may go up or
down depending on general market conditions. Other principal risks include:

FIXED INCOME RISK: To the extent that a substantial amount of the Portfolio's
assets are invested in fixed income securities, that portion of the Portfolio's
performance will be affected by changes in interest rates, the credit risk of
the issuer, the duration or maturity of the Portfolio's fixed income holdings,
and adverse market or economic conditions. When interest rates rise, the value
of the Portfolio's fixed income securities, particularly those with longer
durations or maturities, will go down. When interest rates fall, the reverse is
true. In addition, to the extent that the Portfolio invests in investment-grade
securities which are rated BBB by S&P or an equivalent rating by any other
NRSRO, it will be exposed to greater risk than if it invested in higher-rated
obligations because BBB- rated securities are regarded as having only an
adequate capacity to pay principal and interest, are considered to lack
outstanding investment characteristics, and may be speculative. Other risks that
relate to the Portfolio's investment in fixed income securities include:

JUNK BOND RISK: The Portfolio may invest a portion of its assets in "junk
bonds" or lower-rated securities rated BB or lower by S&P or an equivalent
rating by any other NRSRO or unrated securities of similar quality.
Therefore, credit risk is particularly significant for this Portfolio. Junk
bonds have speculative elements or are predominantly speculative credit
risks. This Portfolio may also be subject to greater credit risk because it
may invest in debt securities issued in connection with corporate

<PAGE>

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61
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restructurings by highly leveraged issuers or in debt securities not
current in the payment of interest or principal, or in default.

SMALL CAP AND MID-CAP COMPANY RISK: The Portfolio's investments in small-cap and
mid-cap companies may be subject to more abrupt or erratic movements in price
than are those of larger, more established companies because: the securities of
such companies are less well-known, held primarily by insiders or institutional
investors and may trade less frequently and in lower volume; such companies are
more likely to experience greater or more unexpected changes in their earnings
and growth prospects; such companies have limited financial resources or may
depend on a few key employees; and the products or technologies of such
companies may be at a relatively early stage of development or not fully tested.

PORTFOLIO PERFORMANCE

---------------------------------------------------- EQ Advisors Trust

<PAGE>

BALANCED/HYBRID PORTFOLIOS (CONTINUED)

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62
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Portfolio's performance to: (i) the returns of a broad-based index; (ii) the
returns of a "blended" index of equity and fixed income securities; and (iii)
the returns of an index of funds with similar investment objectives. Past
performance is not an indication of future performance.

The Portfolio's performance shown below is principally the performance of its
predecessor registered investment company (HRT/Alliance Growth Investors
Portfolio) managed by the Adviser using the same investment objectives and
strategy as the Portfolio. For these purposes, the Portfolio is considered to be
the successor entity to the predecessor registered investment company
(HRT/Alliance Growth Investors Portfolio) whose inception date is October 2,
1989. The assets of the predecessor were transferred to the Portfolio on October
18, 1999. Following that transfer, the performance shown (for the period October
19, 1999 through December 31, 1999) is that of the Portfolio. For these
purposes, the performance results of the Portfolio and its predecessor
registered investment company have been linked.

- ---------------------------------------------------------------------
CALENDAR YEAR ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------

1990 ......................... 10.7%
1991 ......................... 48.8%
1992 ......................... 4.9%
1993 ......................... 15.3%
1994 ......................... -3.2%
1995 ......................... 26.4%
1996 ......................... 12.6%
1997 ......................... 16.9%
1998 ......................... 19.1%
1999 ......................... 26.58%

Best quarter (% and time period) Worst quarter (% and time period)
18.16% (1998 4th Quarter) (10.60)% (1990 3rd Quarter)
- ---------------------------------------------------------------------

- -------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- -------------------------------------------------------------------------
ONE YEAR FIVE YEARS TEN YEARS
- -------------------------------------------------------------------------
Alliance Growth Investors
Portfolio - Class IA Shares 26.58% 20.19% 17.08%
- -------------------------------------------------------------------------
70% S&P 500 Index/30%
Lehman Gov't/Corp.*, ** 13.77% 22.15% 15.13%
- -------------------------------------------------------------------------
S&P 500 Index* 21.03% 28.56% 18.21%
- -------------------------------------------------------------------------
Lipper Flexible Portfolio
Average* 12.07% 17.11% 12.94%
- -------------------------------------------------------------------------

* For more information on this index, see the preceding section "The
Benchmarks."
** We believe that this index reflects more closely the market sectors in which
the Portfolio invests.

WHO MANAGES THE PORTFOLIO

ALLIANCE CAPITAL MANAGEMENT, L.P. ("Alliance"), 1345 Avenue of the Americas, New
York, New York 10105. Alliance has been the Adviser to the Portfolio and its
predecessor registered investment company since the predecessor commenced
operations. Alliance, a publicly traded limited partnership, is indirectly
majority-owned by Equitable. Alliance manages investment companies, endowment
funds, insurance companies, foreign entities, qualified and non-tax qualified
corporate funds, public and private pension and profit-sharing plans,
foundations and tax-exempt organizations.

ROBERT G. HEISTERBERG has been responsible for the day-to-day management of the
Portfolio and its predecessor since February 12, 1996. Mr. Heisterberg, a Senior
Vice President of Alliance and Global Economic Policy Analysis, has been
associated with Alliance since 1977.

<PAGE>

3
More information on principal risks

- ----------------
63
- --------------------------------------------------------------------------------

Risk is the chance that you will lose money on your investment or that it will
not earn as much as you expect. In general, the greater the risk, the more money
your investment can earn for you and the more you can lose. Like other
investment companies, the value of each Portfolio's shares may be affected by
the Portfolio's investment objective(s), principal investment strategies and
particular risk factors. Consequently, each Portfolio may be subject to
different principal risks. Some of the principal risks of investing in the
Portfolios are discussed below. However, other factors may also affect each
Portfolio's net asset value.

There is no guarantee that a Portfolio will achieve its investment objective(s)
or that it will not lose principal value.

GENERAL INVESTMENT RISKS: Each Portfolio is subject to the following risks:

ASSET CLASS RISK: There is the possibility that the returns from the types of
securities in which a Portfolio invests will underperform returns from the
various general securities markets or different asset classes. Different types
of securities tend to go through cycles of outperformance and underperformance
in comparison to the general securities markets.

MARKET RISK: Each Portfolio's share price moves up and down over the short term
in reaction to stock or bond market movements. This means that you could lose
money over short periods, and perhaps over longer periods during extended market
downturns.

SECURITY SELECTION RISK: The Adviser(s) for each Portfolio rely on the insights
of different specialists in making investment decisions based on the Portfolio's
particular investment objective(s) and investment strategies. There is the
possibility that the specific securities held by a Portfolio will underperform
other funds in the same asset class or benchmarks that are representative of the
general performance of the asset class because of the Adviser's choice of
portfolio securities.

As indicated in "Summary Information Concerning EQ Advisors Trust" and "About
the Investment Portfolios," a particular Portfolio may also be subject to the
following risks:

CONVERTIBLE SECURITIES RISK: Convertible securities may include both convertible
debt and convertible preferred stock. Such securities may be converted into
shares of the underlying common stock at either a stated price or stated rate.
Therefore, convertible securities enable you to benefit from increases in the
market price of the underlying common stock. Convertible securities provide
higher yields than the underlying common stocks, but generally offer lower
yields than nonconvertible securities of similar quality. The value of
convertible securities fluctuates in relation to changes in interest rates and,
in addition, fluctuates in relation to the underlying common stock. Subsequent
to purchase by a Portfolio, convertible securities may cease to be rated or a
rating may be reduced below the minimum required for purchase by that Portfolio.
Each Adviser will consider such event in its determination of whether a
Portfolio should continue to hold the securities.

DERIVATIVES RISK: Derivatives are financial contracts whose value depends on, or
is derived from the value of an underlying asset, reference rate or index.
Derivatives include stock options, securities index options, currency options,
forward currency exchange contracts, futures contracts, swaps and options on
futures contracts. Certain Portfolios can use derivatives involving the U.S.
Government and foreign government securities and currencies. Investments in
derivatives can significantly increase your exposure to market risk, or credit
risk of the counterparty. Derivatives also involve the risk of mispricing or
improper valuation and the risk that changes in value of the derivative may not
correlate perfectly with the relevant assets, rates and indices.

FIXED INCOME RISK: To the extent that any of the Portfolios invest a substantial
amount of its assets in fixed income securities, a Portfolio may be subject to
the following risks:

<PAGE>

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64
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ASSET-BACKED SECURITIES RISK: The Portfolio's investments in asset-backed
securities represent interests in pools of consumer loans such as credit
card receivables, automobile loans and leases, leases on equipment such as
computers, and other financial instruments and are subject to certain
additional risks. Rising interest rates tend to extend the duration of
asset-backed securities, making them more sensitive to changes in interest
rates. As a result, in a period of rising interest rates, the Portfolio may
exhibit additional volatility. When interest rates are declining, there are
usually more prepayments of loans which will shorten the life of these
securities. Prepayments also vary based on among other factors, general
economic conditions and other demographic conditions. The reinvestment of
cash received from prepayments will, therefore, usually be at a lower
interest rate than the original investment, lowering the Portfolio's yield.

CREDIT RISK: Credit risk is the risk that the issuer or guarantor of a debt
security or counterparty to a Portfolio's transactions will be unable or
unwilling to make timely principal and/or interest payments, or otherwise
will be unable or unwilling to honor its financial obligations. Each of the
Portfolios may be subject to credit risk to the extent that it invests in
debt securities or engages in transactions, such as securities loans or
repurchase agreements, which involve a promise by a third party to honor an
obligation to the Portfolio.

Credit risk is particularly significant for the Portfolios, such as the
Alliance Growth Investors Portfolio and the Alliance High Yield Portfolio,
that invest a material portion of their assets in "JUNK BONDS" or
lower-rated securities (i.e., rated BB or lower by S&P or an equivalent
rating by any other NRSRO or unrated securities of similar quality). These
debt securities and similar unrated securities have speculative elements or
are predominantly speculative credit risks. Portfolios such as the Alliance
Growth Investors Portfolio and the Alliance High Yield Portfolio may also
be subject to greater credit risk because they may invest in debt
securities issued in connection with corporate restructurings by highly
leveraged issuers or in debt securities not current in the payment of
interest or principal, or in default.

INTEREST RATE RISK: The price of a bond or a fixed income security is
dependent upon interest rates. Therefore, the share price and total return
of a Portfolio investing a significant portion of its assets in bonds or
fixed income securities will vary in response to changes in interest rates.
A rise in interest rates causes the value of a bond to decrease, and vice
versa. There is the possibility that the value of a Portfolio's investment
in bonds or fixed income securities may fall because bonds or fixed income
securities generally fall in value when interest rates rise. The longer the
term of a bond or fixed income instrument, the more sensitive it will be to
fluctuations in value from interest rate changes. Changes in interest rates
may have a significant effect on Portfolios holding a significant portion
of their assets in fixed income securities with long term maturities.

MORTGAGE-BACKED SECURITIES RISK: In the case of mortgage-backed securities,
rising interest rates tend to extend the term to maturity of the
securities, making them even more susceptible to interest rate changes.
When interest rates drop, not only can the value of fixed income securities
drop, but the yield can drop, particularly where the yield on the fixed
income securities is tied to changes in interest rates, such as adjustable
mortgages. Also when interest rates drop, the holdings of mortgage-backed
securities by a Portfolio can reduce returns if the owners of the
underlying mortgages pay off their mortgages sooner than anticipated since
the funds prepaid will have to be reinvested at the then lower prevailing
rates. This is known as prepayment risk. When interest rates rise,

<PAGE>

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the holdings of mortgage-backed securities by a Portfolio can reduce
returns if the owners of the underlying mortgages pay off their mortgages
later than anticipated. This is known as extension risk.

INVESTMENT GRADE SECURITIES RISK: Debt securities are rated by national
bond ratings agencies. Securities rated BBB by S&P or Baa by Moody's are
considered investment grade securities, but are somewhat riskier than
higher rated obligations because they are regarded as having only an
adequate capacity to pay principal and interest, and are considered to lack
outstanding investment characteristics.

JUNK BONDS OR LOWER RATED SECURITIES RISK: Bonds rated below investment
grade by S&P and Moody's are speculative in nature, may be subject to
certain risks with respect to the issuing entity and to greater market
fluctuations than higher rated fixed income securities. They are usually
issued by companies without long track records of sales and earnings, or by
those companies with questionable credit strength. These bonds are
considered "below investment grade." The retail secondary market for these
"junk bonds" may be less liquid than that of higher rated securities and
adverse conditions could make it difficult at times to sell certain
securities or could result in lower prices than those used in calculating
the Portfolio's net asset value.

FOREIGN SECURITIES RISK: A Portfolio's investments in foreign securities,
including depositary receipts, involve risks not associated with investing in
U.S. securities and can affect a Portfolio's performance. Foreign markets,
particularly emerging markets, may be less liquid, more volatile and subject to
less government supervision than domestic markets. There may be difficulties
enforcing contractual obligations, and it may take more time for trades to clear
and settle. The specific risks of investing in foreign securities, among others,
include:

CURRENCY RISK: The risk that changes in currency exchange rates will
negatively affect securities denominated in, and/or receiving revenues in,
foreign currencies. Adverse changes in currency exchange rates (relative to
the U.S. dollar) may erode or reverse any potential gains from a
Portfolio's investment in securities denominated in a foreign currency or
may widen existing losses.

EMERGING MARKET RISK: There are greater risks involved in investing in
emerging market countries and/or their securities markets. Generally,
economic structures in these countries are less diverse and mature than
those in developed countries, and their political systems are less stable.
Investments in emerging markets countries may be affected by national
policies that restrict foreign investment in certain issuers or industries.
The small size of their securities markets and low trading volumes can make
investments illiquid and more volatile than investments in developed
countries and such securities may be subject to abrupt and severe price
declines. As a result, a Portfolio investing in emerging market countries
may be required to establish special custody or other arrangements before
investing.

EURO RISK: Certain of the Portfolios may invest in securities issued by
European issuers. On January 1, 1999, 11 of the 15 member states of the
European Monetary Union ("EMU") introduced the "Euro" as a common currency.
During a three-year transitional period, the Euro will coexist with each
participating state's currency and, on July 1, 2002, the Euro is expected
to become the sole currency of the participating states. The introduction
of the Euro will result in the redenomination of European debt and equity
securities over a period of time, which may result in various legal and
accounting differences and/or tax treatments that otherwise would not
likely occur. During this period, the creation and implementation of
suitable clearing and settlement

---------------------------------------------------- EQ Advisors Trust

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systems and other operational problems may cause market disruptions that
could adversely affect investments quoted in the Euro.

POLITICAL/ECONOMIC RISK: Changes in economic and tax policies, government
instability, war or other political or economic actions or factors may have
an adverse effect on a Portfolio's foreign investments.

REGULATORY RISK: Less information may be available about foreign companies.
In general, foreign companies are not subject to uniform accounting,
auditing and financial reporting standards or to other regulatory practices
and requirements as are U.S. companies.

TRANSACTION COSTS RISK: The costs of buying and selling foreign securities,
including tax, brokerage and custody costs, generally are higher than those
involving domestic transactions.

GROWTH INVESTING RISK: Growth investing generally focuses on companies that, due
to their strong earnings and revenue potential, offer above-average prospects
for capital growth, with less emphasis on dividend income. Earnings
predictability and confidence in earnings forecasts are an important part of the
selection process. As a result, the price of growth stocks may be more sensitive
to changes in current or expected earnings than the prices of other stocks.
Advisers using this approach generally seek out companies experiencing some or
all of the following: high sales growth, high unit growth, high or improving
returns on assets and equity, and a strong balance sheet. Such Advisers also
prefer companies with a competitive advantage such as unique management,
marketing or research and development. Growth investing is also subject to the
risk that the stock price of one or more companies will fall or will fail to
appreciate as anticipated by the Advisers, regardless of movements in the
securities market.

INDEX-FUND RISK: The Alliance Equity Index and BT International Equity Index
Portfolios are not actively managed (which involves buying and selling of
securities based upon economic, financial and market analysis and investment
judgment). Rather, the Alliance Equity Index Portfolio utilizes proprietary
modeling techniques to match the performance results of the S&P 500 Index. The
BT International Equity Index Portfolio utilizes a "passive" or "indexing"
investment approach and attempts to duplicate the investment performance of the
particular index the Portfolio is tracking (i.e., S&P 500 Index, Russell 2000
Index or MSCI EAFE Index) through statistical procedures. Therefore, the
Portfolio will invest in the securities included in the relevant index or
substantially identical securities regardless of market trends. The Portfolio
cannot modify their investment strategies to respond to changes in the economy,
which means they may be particularly susceptible to a general decline in the
U.S. or global stock market segment relating to the relevant index.

LEVERAGING RISK: When a Portfolio borrows money or otherwise leverages its
portfolio, the value of an investment in that Portfolio will be more volatile
and all other risks will tend to be compounded. All of the Portfolios may take
on leveraging risk by investing in collateral from securities loans and by
borrowing money to meet redemption requests.

LIQUIDITY RISK: Certain securities held by a Portfolio may be difficult (or
impossible) to sell at the time and at the price the seller would like. A
Portfolio may have to hold these securities longer than it would like and may
forego other investment opportunities. There is the possibility that a Portfolio
may lose money or be prevented from earning capital gains if it can not sell a
security at the time and price that is most beneficial to the Portfolio.
Portfolios that invest in privately-placed securities, high-yield bonds,
mortgage-backed securities or foreign or emerging market securities, which have
all experienced periods of illiquidity, are subject to liquidity risks. A
particular Portfolio may be more susceptible to some of these risks than others,
as noted in the description of each Portfolio.

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MONEY MARKET RISK: Although a money market fund is designed to be a relatively
low risk investment, it is not entirely free of risk. Despite the short
maturities and high credit quality of the Alliance Money Market Portfolio's
investments, increases in interest rates and deteriorations in the credit
quality of the instruments the Portfolio has purchased may reduce the
Portfolio's yield. In addition, the Portfolio is still subject to the risk that
the value of an investment may be eroded over time by inflation.

MULTIPLE-ADVISER RISK: The EQ/Aggressive Stock and EQ/Balanced Portolios employ
multiple Advisers. Each of the Advisers independently chooses and maintains a
portfolio of common stocks for the Portfolio and each is responsible for
investing a specific allocated portion of the Portfolio's assets. Because each
Adviser will be managing its allocated portion of the Portfolio independently
from the other Advisers, the same security may be held in two different portions
of the Portfolio, or may be acquired for one portion of the Portfolio at a time
when the Adviser of another portion deems it appropriate to dispose of the
security from that other portion. Similarly, under some market conditions, one
Adviser may believe that temporary, defensive investments in short-term
instruments or cash are appropriate when the other Adviser or Advisers believe
continued exposure to the equity markets is appropriate for their portions of
the Portfolio. Because each Adviser directs the trading for its own portion of
the Portfolio, and does not aggregate its transactions with those of the other
Advisers, the Portfolio may incur higher brokerage costs than would be the case
if a single Adviser were managing the entire Portfolio.

PORTFOLIO TURNOVER RISK: Consistent with their investment policies, the
Portfolios also will purchase and sell securities without regard to the effect
on portfolio turnover. Higher portfolio turnover (e.g., over 100% per year) will
cause a Portfolio to incur additional transaction costs that could be passed
through to shareholders.

SECURITIES LENDING RISK: For purposes of realizing additional income, each
Portfolio may lend securities to broker-dealers approved by the Board of
Trustees. In addition, the Alliance High Yield and Alliance Intermediate
Government Securities Portfolios may each make secured loans of its portfolio
securities without restriction. Any such loan of portfolio securities will be
continuously secured by collateral at least equal to the value of the security
loaned. Such collateral will be in the form of cash, marketable securities
issued or guaranteed by the U.S. Government or its agencies, or a standby letter
of credit issued by qualified banks. The risks in lending portfolio securities,
as with other extensions of secured credit, consist of possible delay in
receiving additional collateral or in the recovery of the securities or possible
loss of rights in the collateral should the borrower fail financially. Loans
will only be made to firms deemed by the Adviser to be of good standing and will
not be made unless, in the judgment of the Adviser, the consideration to be
earned from such loans would justify the risk.

SMALL-CAP AND MID-CAP COMPANY RISK: A Portfolio's investments in small-cap and
mid-cap companies may involve greater risks than investments in larger, more
established issuers. Smaller companies may have narrower product lines, more
limited financial resources and more limited trading markets for their stock, as
compared with larger companies. Their securities may be less well-known and
trade less frequently and in more limited volume than the securities of larger,
more established companies. In addition, small-cap and mid-cap companies are
typically subject to greater changes in earnings and business prospects than
larger companies. Consequently, the prices of small company stocks tend to rise
and fall in value more frequently than the stocks of larger companies. Although
investing in small-cap and mid-cap companies offers potential for above-average
returns, the companies may not succeed and the value of their stock could
decline significantly.

---------------------------------------------------- EQ Advisors Trust

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VALUE INVESTING RISK: Value investing attempts to identify strong companies
selling at a discount from their perceived true worth. Advisers using this
approach generally select stocks at prices, in their view, that are temporarily
low relative to the company's earnings, assets, cash flow and dividends. Value
investing is subject to the risk that the stocks' intrinsic value may never be
fully recognized or realized by the market, or their prices may go down. In
addition, there is the risk that a stock judged to be undervalued may actually
be appropriately priced. Value investing generally emphasizes companies that,
considering their assets and earnings history, are attractively priced and may
provide dividend income.

<PAGE>

4
Management of the Trust

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This section gives you information on the Trust, the Manager and the Advisers
for the Portfolios. More detailed information concerning each of the Advisers
and portfolio managers is included in the description for each Portfolio in the
section "About The Investment Portfolios."

THE TRUST

The Trust is organized as a Delaware business trust and is registered with the
Securities and Exchange Commission ("SEC") as an open-end management investment
company. The Trust issues shares of beneficial interest that are currently
divided among forty-one (41) Portfolios, each of which has authorized Class IA
and Class IB shares. Each Portfolio has its own objectives, investment
strategies and risks, which have been previously described in this prospectus.

THE MANAGER

The Equitable Life Assurance Society of the United States ("Equitable"), 1290
Avenue of the Americas, New York, New York 10104, currently serves as the
Manager of the Trust. EQ Financial Consultants, Inc. ("EQFC") previously served
as the Manager of the Trust, until September 17, 1999 when the Trust's
Investment Management Agreement was transferred to Equitable. Equitable is an
investment adviser registered under the Investment Advisers Act of 1940, as
amended, and a wholly-owned subsidiary of AXA Financial, Inc. ("AXA Financial"),
a subsidiary of AXA, a French insurance holding company.

Subject to the supervision and direction of the Board of Trustees, the Manager
has overall responsibility for the general management of the Trust. In the
exercise of that responsibility and under the Multi-Manager Order, the Manager,
without obtaining shareholder approval but subject to the review and approval by
the Board of Trustees, may: (i) select new or additional Advisers for the
Portfolios; (ii) enter into new investment advisory agreements and materially
modify existing investment advisory agreements; and (iii) terminate and replace
the Advisers. The Manager also monitors each Adviser's investment program and
results, reviews brokerage matters, and carries out the directives of the Board
of Trustees. The Manager also supervises the provision of services by third
parties such as the Trust's custodian.

The contractual management fee rates payable by the Trust are at the following
annual percentages of the value of each Portfolio's average daily net assets:

CONTRACTUAL FEE UNDER MANAGEMENT AGREEMENT
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)(FEE ON ALL ASSETS)

- --------------------------------
INDEX PORTFOLIO
- --------------------------------
Alliance Equity Index 0.250%
- --------------------------------

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CONTRACTUAL FEE UNDER MANAGEMENT AGREEMENT
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
FIRST NEXT NEXT NEXT
DEBT PORTFOLIOS $750 MILLION $750 MILLION $1 BILLION $2.5 BILLION THEREAFTER
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance High Yield 0.600% 0.575% 0.550% 0.530% 0.520%
Alliance Intermediate Government Securities 0.500% 0.475% 0.450% 0.430% 0.420%
Alliance Money Market 0.350% 0.325% 0.300% 0.280% 0.270%
Alliance Quality Bond 0.525% 0.500% 0.475% 0.455% 0.445%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

CONTRACTUAL FEE UNDER MANAGEMENT AGREEMENT
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
FIRST NEXT NEXT NEXT
EQUITY PORTFOLIOS $1 BILLION $1 BILLION $3 BILLION $5 BILLION THEREAFTER
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EQ/Aggressive Stock 0.650% 0.600% 0.575% 0.550% 0.525%
EQ/Balanced 0.600% 0.550% 0.525% 0.500% 0.475%
Alliance Common Stock 0.550% 0.500% 0.475% 0.450% 0.425%
Alliance Conservative Investors 0.600% 0.550% 0.525% 0.500% 0.475%
Alliance Global 0.750% 0.700% 0.675% 0.650% 0.625%
Alliance Growth and Income 0.600% 0.550% 0.525% 0.500% 0.475%
Alliance Growth Investors 0.600% 0.550% 0.525% 0.500% 0.475%
Alliance International 0.850% 0.800% 0.775% 0.750% 0.725%
Alliance Small Cap Growth 0.750% 0.700% 0.675% 0.650% 0.625%
- -------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

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The table below shows the annual rate of the management fees (as a percentage of
each Portfolio's average daily net assets) that the Manager (or the predecessor
Manager for certain of the Portfolios) received in 1999 for managing each of the
Portfolios and the rate of the management fees waived by the Manager (or the
predecessor Manager for certain of the Portfolios) in 1999 in accordance with
the provisions of the Expense Limitation Agreement, as defined directly below,
between the Manager and the Trust with respect to certain of the Portfolios.

MANAGEMENT FEES PAID BY THE PORTFOLIOS IN 1999

- --------------------------------------------------------
ANNUAL RATE OF
RATE FEES
PORTFOLIOS RECEIVED WAIVED
- --------------------------------------------------------
EQ/Aggressive Stock 0.54% 0.00%
EQ/Balanced 0.41% 0.00%
Alliance Common Stock 0.36% 0.00%
Alliance Conservative Investors 0.48% 0.00%
Alliance Equity Index 0.30% 0.00%
Alliance Global 0.63% 0.00%
Alliance Growth & Income 0.54% 0.00%
Alliance Gowth Investors 0.50% 0.00%
Alliance High Yield 0.60% 0.00%
Alliance Intermediate 0.50% 0.00%
Government Securities
Alliance International 0.90% 0.00%
Alliance Money Market 0.34% 0.00%
Alliance Quality Bond 0.53% 0.00%
Alliance Small Cap Growth 0.90% 0.00%
- --------------------------------------------------------

THE ADVISERS

Each Portfolio has one or more Advisers that furnish an investment program for
the Portfolio (or portion thereof for which the entity serves as Adviser)
pursuant to an investment advisory agreement with the Manager. Each Adviser
makes investment decisions on behalf of the Portfolio (or portion thereof for
which the entity serves as Adviser), places all orders for the purchase and sale
of investments for the Portfolio's account with brokers or dealers selected by
such Adviser or the Manager and may perform certain limited related
administrative functions in connection therewith.

The Manager has received an exemptive order, the Multi-Manager Order, from the
SEC that permits the Manager, subject to board approval and without the approval
of shareholders to: (a) employ a new Adviser or additional Advisers for any
Portfolio; (b) enter into new investment advisory agreements and materially
modify existing investment advisory agreements; and (c) terminate and replace
the Advisers without obtaining approval of the relevant Portfolio' s
shareholders. However, the Manager may not enter into an investment advisory
agreement with an "affiliated person" of the Manager (as that term is defined in
Section 2(a)(3) of the 1940 Act) ("Affiliated Adviser"), such as Alliance,
unless the investment advisory agreement with the Affiliated Adviser, including
compensation, is approved by the affected Portfolio's shareholders, including,
in instances in which the investment advisory agreement pertains to a newly
formed Portfolio, the Portfolio's initial shareholder. In such circumstances,
shareholders would receive notice of such action, including the information
concerning the Adviser that normally is provided in an information statement
under Schedule 14C of the Securities Exchange Act of 1934 ("1934 Act").

The Manager pays each Adviser a fee based on the Portfolio's average daily net
assets. No Portfolio is responsible for the fees paid to each of the Advisers.

THE ADMINISTRATOR

Pursuant to an agreement, Equitable currently serves as the Administrator to the
Trust. As Administrator, Equitable provides the Trust with necessary
administrative, fund accounting and compliance services, and makes available the
office space, equipment, personnel and facilities required to provide such
services to the Trust.

Equitable may carry out its responsibilities either directly or through
sub-contracting with third party service providers.

---------------------------------------------------- EQ Advisors Trust

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For these services, the Trust pays Equitable $30,000 for each Portfolio, and a
monthly fee at the annual rate of 0.04 of 1% of the first $3 billion of total
Trust assets, 0.03 of 1% of the next $3 billion of the total Trust assets; 0.025
of 1% of the next $4 billion of the total Trust assets; and 0.0225% of 1% of the
total Trust assets in excess of $10 billion.

THE TRANSFER AGENT

Equitable serves as the transfer agent and dividend disbursing agent of the
Trust and receives no compensation for serving in such capacity.

BROKERAGE PRACTICES

In selecting brokers and dealers, in accordance with Section 28(e) of the 1934
Act, the Manager and each Adviser may consider research and brokerage services
received by the Manager, the Advisers, the Trust or any Portfolio. Subject to
seeking the most favorable net price and execution available, the Manager and
each Adviser may also consider sales of shares of the Trust as a factor in the
selection of brokers and dealers. Finally, at the discretion of the Board, the
Trust may direct the Manager to cause Advisers to effect securities transactions
through broker-dealers in a manner that would help to generate resources to (i)
pay the cost of certain expenses which the Trust is required to pay or for which
the Trust is required to arrange payment or (ii) finance activities that are
primarily intended to result in the sale of Trust shares.

BROKERAGE TRANSACTIONS WITH AFFILIATES

To the extent permitted by law, the Trust may engage in securities and other
transactions with entities that may be affiliated with the Manager or the
Advisers. The 1940 Act generally prohibits the Trust from engaging in principal
securities transactions with an affiliate of the Manager or the Advisers unless
pursuant to an exemptive order from the SEC. For these purposes, however, the
Trust has considered this issue and believes, based upon advice of counsel, that
a broker-dealer affiliate of an Adviser to one Portfolio should not be treated
as an affiliate of an Adviser to another Portfolio for which such Adviser does
not provide investment advice in whole or in part. The Trust has adopted
procedures that are reasonably designed to provide that any commission it pays
to affiliates of the Manager or Advisers does not exceed the usual and customary
broker's commission. The Trust has also adopted procedures permitting it to
purchase securities, under certain restrictions prescribed by a rule under the
1940 Act, in a public offering in which an affiliate of the Manager or Advisers
is an underwriter.

<PAGE>

5
Fund distribution arrangements

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The Trust offers two classes of shares on behalf of each Portfolio: Class IA
shares and Class IB shares. AXA Advisors, LLC ("AXA Advisors") serves as one of
the distributors for the Class IA shares of the Trust offered by this Prospectus
as well as one of the distributors for the Class IB shares. Equitable
Distributors, Inc. ("EDI") serves as the other distributor for the Class IA
shares of the Trust as well as the Class IB shares. Both classes of shares are
offered and redeemed at their net asset value without any sales load. AXA
Advisors and EDI are affiliates of Equitable. Both AXA Advisors and EDI are
registered as broker-dealers under the 1934 Act and are members of the National
Association of Securities Dealers, Inc.

The Trust has adopted a Distribution Plan under Rule 12b-1 under the 1940 Act
for the Trust's Class IB shares. Under the Class IB Distribution Plan the Class
IB shares of the Trust pay each of the distributors an annual fee to compensate
them for promoting, selling and servicing shares of the Portfolios. The annual
fees equal 0.25% of each Portfolio's average daily net assets. Over time, the
fees will increase your cost of investing and may cost you more than other types
of charges.

<PAGE>

6
Purchase and redemption

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The price at which a purchase or redemption is effected is based on the next
calculation of net asset value after an order is placed by an insurance company
or qualified retirement plan investing in or redeeming from the Trust.

Net asset value per share is calculated for purchases and redemption of shares
of each Portfolio by dividing the value of total Portfolio assets, less
liabilities (including Trust expenses and class related expenses, which are
accrued daily), by the total number of outstanding shares of that Portfolio. The
net asset value per share of each Portfolio is determined each business day at
4:00 p.m. Eastern time. Net asset value per share is not calculated on days on
which the New York Stock Exchange ("NYSE") is closed for trading.

Portfolios that invest a significant portion of their assets in foreign
securities may experience changes in their net asset value on days when a
shareholder may not purchase or redeem shares of that Portfolio because foreign
securities (other than depositary receipts) are valued at the close of business
in the applicable foreign country.

All shares are purchased and redeemed in accordance with the Trust's Amended and
Restated Declaration of Trust and By-Laws. Sales and redemptions of shares of
the same class by the same shareholder on the same day will be netted for each
Portfolio. All redemption requests will be processed and payment with respect
thereto will normally be made within seven days after tenders.

The Trust may suspend redemption, if permitted by the 1940 Act, for any period
during which the New York Stock Exchange is closed or during which trading is
restricted by the SEC or the SEC declares that an emergency exists. Redemption
may also be suspended during other periods permitted by the SEC for the
protection of the Trust's shareholders. If the Board of Trustees determines that
it would be detrimental to the best interest of the Trust's remaining
shareholders to make payment in cash, the Trust may pay redemption proceeds in
whole or in part by a distribution-in-kind of readily marketable securities.

You should note that the Trust is not designed for professional "market timing"
organizations, or other organizations or individuals engaging in a market timing
strategy, making programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of each of the Trust's Portfolios. Market
timing strategies are disruptive to the Trust's Portfolios. If we determine that
your transfer patterns among the Trust's Portfolios reflect a market timing
strategy, we reserve the right to take action including, but not limited to:
restricting the availability of transfers through telephone requests, facsimile
transmissions, automated telephone services, internet services or any electronic
transfer services. We may also refuse to act on transfer instructions of an
agent acting under a power of attorney who is acting on behalf of more than one
owner.

<PAGE>

7
How assets are valued

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75
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Values are determined according to accepted practices and all laws and
regulations that apply. The assets of each Portfolio are generally valued as
follows:

o Stocks and debt securities which mature in more than 60 days are valued on
the basis of market quotations.

o Foreign securities not traded directly, including depositary receipts, in
the United States are valued at representative quoted prices in the
currency in the country of origin. Foreign currency is converted into
United States dollar equivalents at current exchange rates. Because
foreign markets may be open at different times than the NYSE, the value of
a Portfolio's shares may change on days when shareholders are not able to
buy or sell them. If events materially affecting the values of the
Portfolios' foreign investments occur between the close of foreign markets
and the close of regular trading on the NYSE, these investments may be
valued at their fair value.

o Short-term debt securities in the Portfolios, other than the Alliance Money
Market Portfolio, which mature in 60 days or less are valued at amortized
cost, which approximates market value. Securities held in the Alliance
Money Market Portfolio are valued at prices based on equivalent yields or
yield spreads.

o Other securities and assets for which market quotations are not readily
available or for which valuation cannot be provided are valued in good
faith by the Valuation Committee of the Board of Trustees of the Trust
using its best judgment.

<PAGE>

8
Tax information

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76
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Each Portfolio of the Trust is a separate regulated investment company for
federal income tax purposes. Regulated investment companies are usually not
taxed at the entity (Portfolio) level. They pass through their income and gains
to their shareholders by paying dividends. Their shareholders include this
income on their respective tax returns. A Portfolio will be treated as a
regulated investment company if it meets specified federal income tax rules,
including types of investments, limits on investments, calculation of income,
and dividend payment requirements. Although the Trust intends that it and each
Portfolio will be operated to have no federal tax liability, if they have any
federal tax liability, that could hurt the investment performance of the
Portfolio in question. Also, any Portfolio investing in foreign securities or
holding foreign currencies could be subject to foreign taxes which could reduce
the investment performance of the Portfolio.

It is important for each Portfolio to maintain its federal income tax regulated
investment company status because the shareholders of the Portfolio that are
insurance company separate accounts will then be able to use a favorable federal
income tax investment diversification testing rule in determining whether the
Contracts indirectly funded by the Portfolio meet tax qualification rules for
variable insurance contracts. If a Portfolio fails to meet specified investment
diversification requirements, owners of non-pension plan Contracts funded
through the Trust could be taxed immediately on the accumulated investment
earnings under their Contracts and could lose any benefit of tax deferral.
Equitable, in its capacity as Administrator therefore carefully monitors
compliance with all of the regulated investment company rules and variable
insurance contract investment diversification rules.

<PAGE>

9
Financial Highlights

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The financial highlights table is intended to help you understand the financial
performance for the Trust's Class IA and Class IB shares since May 1, 1997. With
respect to the Portfolios that are advised by Alliance (other than EQ/Alliance
Premier Growth Portfolio) financial information in the table below is for the
past five (5) years (or, if shorter, the period of the Portfolio's operations).
The information for the Class IA and Class IB shares have been derived from the
financial statements of the Trust, which have been audited by
PricewaterhouseCoopers LLP, independent public accountants.
PricewaterhouseCoopers LLP's report on the Trust's financial statements as of
December 31, 1999 appears in the Trust's Annual Report. The information should
be read in conjunction with the financial statements contained in the Trust's
Annual Report which are incorporated by reference into the Trust's Statement of
Additional Information (SAI) and available upon request.

EQ/AGGRESSIVE STOCK PORTFOLIO (FKA ALLIANCE AGGRESSIVE STOCK PORTFOLIO)(D)(E):

<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 34.15 $ 36.22 $ 35.85 $ 35.68 $ 30.63
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ........... 0.12 0.09 0.04 0.09 0.10
Net realized and unrealized gain
(loss) on investments ................. 6.22 (0.28) 3.71 7.52 9.54
--------- ---------- --------- --------- ---------
Total from investment operations........ 6.34 (0.19) 3.75 7.61 9.64
--------- ---------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................ (0.12) (0.16) (0.05) (0.09) (0.10)
Dividends in excess of net
investment income ..................... - - - - -
Distributions from realized gains ...... (2.36) (1.72) (3.33) (7.33) (4.49)
Distributions in excess of realized
gains ................................. - - - (0.02) -
Tax return of capital distributions .... - - - - -
--------- --------- --------- --------- ---------
Total dividends and distributions ...... (2.48) (1.88) (3.38) (7.44) (4.59)
--------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 38.01 $ 34.15 $ 36.22 $ 35.85 $ 35.68
========= ========= ========= ========= =========
Total return ............................. 18.84% 0.29% 10.94% 22.20% 31.63%
========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $4,368,877 $4,346,907 $4,589,771 $3,865,256 $2,700,515
Ratio of expenses to average net
assets ................................. 0.56% 0.56% 0.54% 0.48% 0.49%
Ratio of net investment income (loss)
to average net assets .................. 0.33% 0.24% 0.11% 0.24% 0.28%
Portfolio turnover rate .................. 87% 105% 123% 108% 127%

<CAPTION>
CLASS IB
-----------------------------------------------------
OCTOBER 2,*
YEAR ENDED DECEMBER 31, 1996 TO
------------------------------------- DECEMBER 31,
1999 1998 1997 1996
------------ ------------ ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 34.01 $ 36.13 $ 35.83 $ 37.28
------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ........... 0.03 0.01 (0.11) (0.01)
Net realized and unrealized gain
(loss) on investments ................. 6.20 (0.29) 3.77 0.85
------- ------- ------- -------
Total from investment operations........ 6.23 (0.28) 3.66 0.84
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................ (0.05) (0.12) (0.03) -
Dividends in excess of net
investment income ..................... - - - (0.02)
Distributions from realized gains ...... (2.36) (1.72) (3.33) (0.23)
Distributions in excess of realized
gains ................................. - - - (2.04)
Tax return of capital distributions .... - - - -
------- ------- ------- -------
Total dividends and distributions ...... (2.41) (1.84) (3.36) (2.29)
------- ------- ------- -------
Net asset value, end of period ........... $ 37.83 $ 34.01 $ 36.13 $ 35.83
======= ======= ======= =======
Total return ............................. 18.55% 0.05% 10.66% 2.32%(b)
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $233,265 $153,782 $73,486 $613
Ratio of expenses to average net
assets ................................. 0.81% 0.82% 0.81% 0.73%(a)
Ratio of net investment income (loss)
to average net assets .................. 0.07% 0.02% (0.28)% (0.10)%(a)
Portfolio turnover rate .................. 87% 105% 123% 108%
</TABLE>

<PAGE>

- -----
78
- --------------------------------------------------------------------------------

EQ/BALANCED PORTFOLIO (FKA ALLIANCE BALANCED PORTFOLIO)(D)(E):

<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 18.51 $ 17.58 $ 16.64 $ 16.76 $ 14.87
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................... 0.52 0.56 0.58 0.53 0.54
Net realized and unrealized gain on
investments and foreign currency
transactions ........................... 2.69 2.54 1.86 1.31 2.36
--------- --------- --------- --------- ---------
Total from investment operations ........ 3.21 3.10 2.44 1.84 2.90
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................. (0.56) (0.50) (0.59) (0.53) (0.54)
Dividends in excess of net
investment income ...................... - - - - -
Distributions from realized gains ....... (1.98) (1.67) (0.91) (1.40) (0.47)
Distributions in excess of realized
gains .................................. - - - (0.03) -
Tax return of capital distributions ..... - - - - -
--------- --------- --------- --------- ---------
Total dividends and distributions ....... (2.54) (2.17) (1.50) (1.96) (1.01)
--------- --------- --------- --------- ---------
Net asset value, end of period ............ $ 19.18 $ 18.51 $ 17.58 $ 16.64 $ 16.76
========= ========= ========= ========= =========
Total return .............................. 17.79% 18.11% 15.06% 11.68% 19.75%
========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $2,126,313 $1,936,429 $1,724,089 $1,637,856 $1,523,142
Ratio of expenses to average net
assets .................................. 0.44% 0.45% 0.45% 0.41% 0.40%
Ratio of net investment income to
average net assets ...................... 2.68% 3.00% 3.30% 3.15% 3.33%
Portfolio turnover rate ................... 107% 95% 146% 177% 186%

<CAPTION>
CLASS IB
------------------------------------
JULY 8, 1998*
YEAR ENDED TO
DECEMBER 31, 1999 DECEMBER 31, 1998
------------------ -----------------
<S> <C> <C>
Net asset value, beginning of period ...... $ 18.51 $ 19.48
------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................... 0.47 0.24
Net realized and unrealized gain on
investments and foreign currency
transactions ........................... 2.69 0.66
------- -------
Total from investment operations ........ 3.16 0.90
------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................. (0.54) (0.20)
Dividends in excess of net
investment income ...................... - -
Distributions from realized gains ....... (1.98) (1.67)
Distributions in excess of realized
gains .................................. - -
Tax return of capital distributions ..... - -
------- -------
Total dividends and distributions ....... (2.52) (1.87)
------- -------
Net asset value, end of period ............ $ 19.15 $ 18.51
======= =======
Total return .............................. 17.50% 4.92%(b)
======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $10,701 $10
Ratio of expenses to average net
assets .................................. 0.69% 0.70%(a)
Ratio of net investment income to
average net assets ...................... 2.43% 2.65%(a)
Portfolio turnover rate ................... 107% 95%
</TABLE>

<PAGE>

- -----
79
- --------------------------------------------------------------------------------

ALLIANCE COMMON STOCK PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------
1999 1998 1997 1996 1995
------------- ------------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $24.35 $ 21.61 $ 18.23 $ 16.48 $ 13.36
------ ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.17 0.18 0.14 0.15 0.20
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 5.84 5.99 5.12 3.73 4.12
------ ------- ------- ------- -------
Total from investment
operations ..................... 6.01 6.17 5.26 3.88 4.32
------ ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.16) (0.15) (0.11) (0.15) (0.20)
Dividends in excess of net
investment income .............. - - - - (0.02)
Distributions from realized
gains .......................... (4.03) (3.28) (1.77) (1.76) (0.95)
Distributions in excess of
realized gains ................. - - - (0.22) (0.03)
Tax return of capital
distributions .................. - - - - -
------ ------- ------- ------- -------
Total dividends and
distributions .................. (4.19) (3.43) (1.88) (2.13) (1.20)
------ ------- ------- ------- -------
Net asset value, end of period..... $26.17 $ 24.35 $ 21.61 $ 18.23 $ 16.48
====== ======= ======= ======= =======
Total return ...................... 25.19% 29.39% 29.40% 24.28% 32.45%
====== ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $14,951,495 $12,061,977 $9,331,994 $6,625,390 $4,879,677
Ratio of expenses to average
net assets ...................... 0.38% 0.39% 0.39% 0.38% 0.38%
Ratio of net investment
income to average net
assets .......................... 0.65% 0.75% 0.69% 0.85% 1.27%
Portfolio turnover rate ........... 57% 46% 52% 55% 61%

<CAPTION>
CLASS IB
-------------------------------------------------------
OCTOBER 2,*
1996 TO
YEAR ENDED DECEMBER 31, DECEMBER
---------------------------------------- 31,
1999 1998 1997 1996
-------------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $24.30 $21.58 $18.22 $17.90
------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.10 0.10 0.10 0.02
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 5.82 6.00 5.11 1.52
------ ------ ------ ------
Total from investment
operations ..................... 5.92 6.10 5.21 1.54
------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.14) (0.10) (0.08) -
Dividends in excess of net
investment income .............. - - - (0.03)
Distributions from realized
gains .......................... (4.03) (3.28) (1.77) (0.16)
Distributions in excess of
realized gains ................. - - - (1.03)
Tax return of capital
distributions .................. - - - -
------ ------ ------ ------
Total dividends and
distributions .................. (4.17) (3.38) (1.85) (1.22)
------ ------ ------ ------
Net asset value, end of period..... $26.05 $24.30 $21.58 $18.22
====== ====== ====== ======
Total return ...................... 24.88% 29.06% 29.07% 8.49%(b)
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $1,642,066 $834,144 $228,780 $1,244
Ratio of expenses to average
net assets ...................... 0.63% 0.64% 0.64% 0.63%(a)
Ratio of net investment
income to average net
assets .......................... 0.39% 0.44% 0.46% 0.61%(a)
Portfolio turnover rate ........... 57% 46% 52% 55%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
80
- --------------------------------------------------------------------------------

ALLIANCE CONSERVATIVE INVESTORS PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ........................ $ 12.32 $ 11.89 $ 11.29 $ 11.52 $ 10.15
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ......... 0.47 0.49 0.49 0.50 0.60
Net realized and unrealized
gain on investments and
foreign currency
transactions ................. 0.76 1.12 0.97 0.07 1.43
------- ------- ------- ------- -------
Total from investment
operations ................... 1.23 1.61 1.46 0.57 2.03
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............ (0.44) (0.48) (0.49) (0.51) (0.59)
Distributions from realized
gains ........................ (0.56) (0.70) (0.37) (0.27) (0.07)
Distributions in excess of
realized gains ............... - - - (0.02) -
Tax return of capital
distributions ................ - - - - -
------- ------- ------- ------- -------
Total dividends and
distributions ................ (1.00) (1.18) (0.86) (0.80) (0.66)
------- ------- ------- ------- -------
Net asset value, end of
period ......................... $ 12.55 $ 12.32 $ 11.89 $ 11.29 $ 11.52
======= ======= ======= ======= =======
Total return .................... 10.14% 13.88% 13.25% 5.21% 20.40%
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ....................... $394,489 $355,441 $307,847 $282,402 $252,101
Ratio of expenses to average
net assets .................... 0.53% 0.53% 0.57% 0.61% 0.59%
Ratio of net investment
income to average
net assets .................... 3.73% 3.99% 4.17% 4.48% 5.48%
Portfolio turnover rate ......... 111% 103% 206% 181% 287%

<CAPTION>
CLASS 1B
---------------------------------------
YEAR ENDED MAY 1, 1997*
DECEMBER 31, TO
----------------------- DECEMBER 31,
1999 1998 1997
----------- ----------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of
period ........................ $ 12.31 $ 11.88 $ 11.29
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ......... 0.44 0.46 0.31
Net realized and unrealized
gain on investments and
foreign currency
transactions ................. 0.75 1.12 1.01
------- ------- -------
Total from investment
operations ................... 1.19 1.58 1.32
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income ............ (0.43) (0.45) (0.36)
Distributions from realized
gains ........................ (0.56) (0.70) (0.37)
Distributions in excess of
realized gains ............... - - -
Tax return of capital
distributions ................ - - -
------- ------- -------
Total dividends and
distributions ................ (0.99) (1.15) (0.73)
------- ------- -------
Net asset value, end of
period ......................... $ 12.51 $ 12.31 $ 11.88
======= ======= =======
Total return .................... 9.87% 13.60% 11.84%(b)
======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ....................... $81,555 $32,653 $5,694
Ratio of expenses to average
net assets .................... 0.78% 0.78% 0.80%(a)
Ratio of net investment
income to average
net assets .................... 3.48% 3.68% 3.82%(a)
Portfolio turnover rate ......... 111% 103% 206%
</TABLE>

<PAGE>

- -----
81
- --------------------------------------------------------------------------------

ALLIANCE EQUITY INDEX PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
--------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 25.00 $ 19.74 $ 15.16 $ 13.13 $ 9.87
--------- --------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.28 0.27 0.26 0.27 0.26
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 4.78 5.25 4.64 2.65 3.32
--------- --------- ------- ------- -------
Total from investment
operations ..................... 5.06 5.52 4.90 2.92 3.58
--------- --------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.27) (0.25) (0.25) (0.25) (0.22)
Dividends in excess of net
investment income - ............ - - - - -
Distributions from realized
gains .......................... (0.22) (0.01) (0.07) (0.64) (0.09)
Distributions in excess of
realized gains ................. - - - - (0.01)
Tax return of capital
distributions .................. - - - - -
--------- --------- ------- ------- -------
Total dividends and
distributions .................. (0.49) (0.26) (0.32) (0.89) (0.32)
--------- --------- ------- ------- -------
Net asset value, end of period..... $ 29.57 $ 25.00 $ 19.74 $ 15.16 $ 13.13
========= ========= ======= ======= =======
Total return ...................... 20.38% 28.07% 32.58% 22.39% 36.48%
========= ========= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $2,618,539 $1,689,913 $943,631 $386,249 $165,785
Ratio of expenses to average
net assets ...................... 0.33% 0.34% 0.37% 0.39% 0.48%
Ratio of net investment
income to average net
assets .......................... 1.05% 1.23% 1.46% 1.91% 2.16%
Portfolio turnover rate ........... 5% 6% 3% 15% 9%

<CAPTION>
CLASS 1B
----------------------------------------
YEAR ENDED MAY 1, 1997*
DECEMBER 31, TO
----------------------- DECEMBER 31,
1999 1998 1997
----------- ----------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 24.98 $ 19.73 $ 16.35
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.21 0.22 0.14
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 4.78 5.24 3.48
------- ------- -------
Total from investment
operations ..................... 4.99 5.46 3.62
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.25) (0.20) (0.17)
Dividends in excess of net
investment income - ............ - - -
Distributions from realized
gains .......................... (0.22) (0.01) (0.07)
Distributions in excess of
realized gains ................. - - -
Tax return of capital
distributions .................. - - -
------- ------- -------
Total dividends and
distributions .................. (0.47) (0.21) (0.24)
------- ------- -------
Net asset value, end of period..... $ 29.50 $ 24.98 $ 19.73
======= ======= =======
Total return ...................... 20.08% 27.74% 22.28%(b)
======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $20,931 $443 $110
Ratio of expenses to average
net assets ...................... 0.58% 0.59% 0.62%(a)
Ratio of net investment
income to average net
assets .......................... 0.78% 0.98% 1.10%(a)
Portfolio turnover rate ........... 5% 6% 3%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
82
- --------------------------------------------------------------------------------

ALLIANCE GLOBAL PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- -------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 19.46 $ 17.29 $ 16.92 $ 15.74 $ 13.87
--------- --------- --------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.10 0.14 0.17 0.21 0.26
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 7.25 3.56 1.75 2.05 2.32
--------- --------- --------- ------- -------
Total from investment
operations ..................... 7.35 3.70 1.92 2.26 2.58
--------- --------- --------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.02) (0.22) (0.36) (0.21) (0.25)
Dividends in excess of net
investment income .............. - - - (0.08) -
Distributions from realized
gains .......................... (1.63) (1.31) (1.19) (0.79) (0.42)
Distributions in excess of
realized gains ................. - - - - (0.03)
Tax return of capital
distributions .................. - - - - (0.01)
--------- --------- --------- ------- -------
Total dividends and
distributions .................. (1.65) (1.53) (1.55) (1.08) (0.71)
--------- --------- --------- ------- -------
Net asset value, end of period..... $ 25.16 $ 19.46 $ 17.29 $ 16.92 $ 15.74
========= ========= ========= ======= =======
Total return ...................... 38.53% 21.80% 11.66% 14.60% 18.81%
========= ========= ========= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $1,869,185 $1,360,220 $1,203,867 $997,041 $686,140
Ratio of expenses to average
net assets ...................... 0.70% 0.71% 0.69% 0.60% 0.61%
Ratio of net investment
income to average net
assets .......................... 0.45% 0.72% 0.97% 1.28% 1.76%
Portfolio turnover rate ........... 93% 105% 57% 59% 67%

<CAPTION>
CLASS 1B
-----------------------------------------------------
OCTOBER 2,*
YEAR ENDED DECEMBER 31, 1996 TO
------------------------------------ DECEMBER 31,
1999 1998 1997 1996
------------ ----------- ----------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 19.41 $ 17.27 $ 16.91 $ 16.57
------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.03 0.08 0.12 0.02
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 7.24 3.56 1.76 0.81
------- ------- ------- -------
Total from investment
operations ..................... 7.27 3.64 1.88 0.83
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. - (0.19) (0.33) -
Dividends in excess of net
investment income .............. - - - (0.11)
Distributions from realized
gains .......................... (1.63) (1.31) (1.19) (0.10)
Distributions in excess of
realized gains ................. - - - (0.28)
Tax return of capital
distributions .................. - - - -
------- ------- ------- -------
Total dividends and
distributions .................. (1.63) (1.50) (1.52) (0.49)
------- ------- ------- -------
Net asset value, end of period..... $ 25.05 $ 19.41 $ 17.27 $ 16.91
======= ======= ======= =======
Total return ...................... 38.17% 21.50% 11.38% 4.98%(b)
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $121,052 $47,982 $21,520 $290
Ratio of expenses to average
net assets ...................... 0.95% 0.96% 0.97% 0.86%(a)
Ratio of net investment
income to average net
assets .......................... 0.16% 0.41% 0.67% 0.48%(a)
Portfolio turnover rate ........... 93% 105% 57% 59%
</TABLE>

<PAGE>

- -----
83
- --------------------------------------------------------------------------------

ALLIANCE GROWTH AND INCOME PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 16.99 $ 15.38 $ 13.01 $ 11.70 $ 9.70
---------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................... 0.06 0.06 0.15 0.24 0.33
Net realized and unrealized gain
(loss) on investments .................. 3.05 3.08 3.30 2.05 1.97
---------- ------- ------- ------- -------
Total from investment operations ........ 3.11 3.14 3.45 2.29 2.30
---------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................. (0.05) (0.05) (0.15) (0.23) (0.30)
Distributions from realized gains ....... (1.81) (1.48) (0.93) (0.75) -
Tax return of capital distributions ..... - - - - -
---------- ------- ------- ------- -------
Total dividends and distributions ....... (1.86) (1.53) (1.08) (0.98) (0.30)
---------- ------- ------- ------- -------
Net asset value, end of period ............ $ 18.24 $ 16.99 $ 15.38 $ 13.01 $ 11.70
========== ======= ======= ======= =======
Total return .............................. 18.66% 20.86% 26.90% 20.09% 24.07%
========== ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $1,241,619 $877,744 $555,059 $232,080 $98,053
Ratio of expenses to average net
assets .................................. 0.57% 0.58% 0.58% 0.58% 0.60%
Ratio of net investment income to
average net assets ...................... 0.33% 0.38% 0.99% 1.94% 3.11%
Portfolio turnover rate ................... 70% 74% 79% 88% 65%

<CAPTION>
CLASS IB
--------------------------------------------
YEAR END DECEMBER 31, MAY 1, 1997*
------------------------- TO
1999 1998 DECEMBER 31, 1997
------------ ------------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period ...... $ 16.95 $ 15.36 $ 13.42
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ................... 0.01 0.03 0.05
Net realized and unrealized gain
(loss) on investments .................. 3.04 3.07 2.91
------- ------- -------
Total from investment operations ........ 3.05 3.10 2.96
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................. (0.03) (0.03) (0.09)
Distributions from realized gains ....... (1.81) (1.48) (0.93)
Tax return of capital distributions ..... - - -
------- ------- -------
Total dividends and distributions ....... (1.84) (1.51) (1.02)
------- ------- -------
Net asset value, end of period ............ $ 18.16 $ 16.95 $ 15.36
======= ======= =======
Total return .............................. 18.37% 20.56% 22.41%(b)
======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ......... $261,663 $120,558 $32,697
Ratio of expenses to average net
assets .................................. 0.82% 0.83% 0.83%(a)
Ratio of net investment income to
average net assets ...................... 0.06% 0.17% 0.43%(a)
Portfolio turnover rate ................... 70% 74% 79%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
84
- --------------------------------------------------------------------------------

ALLIANCE GROWTH INVESTORS PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
-------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
1999 1998 1997 1996 1995
-------------- -------------- --------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 19.87 $ 18.55 $ 17.20 $ 17.68 $ 14.66
--------- --------- ---------- --------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.37 0.41 0.41 0.40 0.57
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 4.83 3.03 2.43 1.66 3.24
--------- --------- ---------- --------- -------
Total from investment
operations ..................... 5.20 3.44 2.84 2.06 3.81
--------- --------- ---------- --------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.35) (0.41) (0.46) (0.40) (0.54)
Dividends in excess of net
investment income .............. - - - (0.03) (0.01)
Distributions from realized
gains .......................... (2.15) (1.71) (1.03) (2.10) (0.24)
Distributions in excess of
realized gains ................. - - - (0.01) -
Tax return of capital
distributions .................. - - - - -
--------- --------- ---------- --------- -------
Total dividends and
distributions .................. (2.50) (2.12) (1.49) (2.54) (0.79)
--------- --------- ---------- --------- -------
Net asset value, end of period..... $ 22.57 $ 19.87 $ 18.55 $ 17.20 $ 17.68
========= ========= ========== ========= =======
Total return ...................... 26.58% 19.13% 16.87% 12.61% 26.37%
========= ========= ========== ========= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $2,495,787 $1,963,074 $1,630,389 $1,301,643 $896,134
Ratio of expenses to average
net assets ...................... 0.53% 0.55% 0.57% 0.57% 0.56%
Ratio of net investment
income to average net
assets .......................... 1.71% 2.10% 2.18% 2.31% 3.43%
Portfolio turnover rate ........... 98% 102% 121% 190% 107%

<CAPTION>
CLASS IB
-----------------------------------------------------
YEAR ENDED OCTOBER 2,
DECEMBER 31, 1996 TO
------------------------------------ DECEMBER 31,
1999 1998 1997 1996
------------ ----------- ----------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 19.84 $ 18.52 $ 17.19 $ 16.78
------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.31 0.36 0.36 0.07
Net realized and unrealized
gain on investments and
foreign currency
transactions ................... 4.82 3.03 2.43 0.71
------- ------- ------- -------
Total from investment
operations ..................... 5.13 3.39 2.79 0.78
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. (0.31) (0.36) (0.43) (0.02)
Dividends in excess of net
investment income .............. - - - (0.09)
Distributions from realized
gains .......................... (2.15) (1.71) (1.03) (0.02)
Distributions in excess of
realized gains ................. - - - (0.24)
Tax return of capital
distributions .................. - - - -
------- ------- ------- -------
Total dividends and
distributions .................. (2.46) (2.07) (1.46) (0.37)
------- ------- ------- -------
Net asset value, end of period..... $ 22.51 $ 19.84 $ 18.52 $ 17.19
======= ======= ======= =======
Total return ...................... 26.27% 18.83% 16.58% 4.64%(b)
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $202,850 $92,027 $35,730 $472
Ratio of expenses to average
net assets ...................... 0.78% 0.80% 0.82% 0.84%(a)
Ratio of net investment
income to average net
assets .......................... 1.44% 1.85% 1.88% 1.69%(a)
Portfolio turnover rate ........... 98% 102% 121% 190%
</TABLE>

<PAGE>

- -----
85
- --------------------------------------------------------------------------------

ALLIANCE HIGH YIELD PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ............................ $ 8.71 $ 10.41 $ 10.02 $ 9.64 $ 8.91
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............. 0.90 1.07 1.04 1.02 0.98
Net realized and unrealized
gain (loss) on investments. ...... (1.19) (1.56) 0.75 1.07 0.73
------- ------- ------- ------- -------
Total from investment
operations ....................... (0.29) (0.49) 1.79 2.09 1.71
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ........................... (0.96) (1.03) (0.97) (0.98) (0.94)
Dividends in excess of net
investment income ................ - - - (0.03) (0.04)
Distributions from realized
gains ............................ (0.01) (0.18) (0.43) (0.70) -
Distributions in excess of
realized gains ................... - - - - -
Return of capital distributions ... (0.02) - - - -
------- ------- ------- ------- -------
Total dividends and
distributions .................... (0.99) (1.21) (1.40) (1.71) (0.98)
------- ------- ------- ------- -------
Net asset value, end of period ...... $ 7.43 $ 8.71 $ 10.41 $ 10.02 $ 9.64
======= ======= ======= ======= =======
Total return ........................ (3.35)% (5.15)% 18.48% 22.89% 19.92%
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ... $336,292 $405,308 $355,473 $199,360 $118,129
Ratio of expenses to average net
assets ............................ 0.63% 0.63% 0.62% 0.59% 0.60%
Ratio of net investment income to
average net assets ................ 10.53% 10.67% 9.82% 9.93% 10.34%
Portfolio turnover rate ............. 178% 181% 390% 485% 350%

<CAPTION>
CLASS IB
-------------------------------------------------------
OCTOBER 2,*
YEAR ENDED DECEMBER 31, 1996 TO
-------------------------------------- DECEMBER 31,
1999 1998 1997 1996
------------ ------------- ----------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period ............................ $ 8.69 $ 10.39 $ 10.01 $ 10.25
------- ------- ------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............. 0.87 1.04 1.05 0.19
Net realized and unrealized
gain (loss) on investments. ...... (1.18) (1.56) 0.71 0.15
------- ------- ------- ---------
Total from investment
operations ....................... (0.31) (0.52) 1.76 0.34
------- ------- ------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ........................... (0.95) (1.00) (0.95) (0.03)
Dividends in excess of net
investment income ................ - - - (0.25)
Distributions from realized
gains ............................ (0.01) (0.18) (0.43) (0.01)
Distributions in excess of
realized gains ................... - - - (0.29)
Return of capital distributions ... (0.02) - - -
------- ------- ------- ---------
Total dividends and
distributions .................... (0.98) (1.18) (1.38) (0.58)
------- ------- ------- ---------
Net asset value, end of period ...... $ 7.40 $ 8.69 $ 10.39 $ 10.01
======= ======= ======= =========
Total return ........................ (3.58)% (5.38)% 18.19% 3.32%(b)
======= ======= ======= =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ... $230,290 $207,042 $66,338 $ 685
Ratio of expenses to average net
assets ............................ 0.88% 0.88% 0.88% 0.82%(a)
Ratio of net investment income to
average net assets ................ 10.25% 10.60% 9.76% 8.71%(a)
Portfolio turnover rate ............. 178% 181% 390% 485%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
86
- --------------------------------------------------------------------------------

ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 9.67 $ 9.44 $ 9.29 $ 9.47 $ 8.87
-------- ------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.50 0.50 0.53 0.54 0.58
Net realized and unrealized gain (loss) on
investments ................................. (0.49) 0.21 0.13 (0.19) 0.57
-------- ------- ------- ------ ------
Total from investment operations ............. 0.01 0.71 0.66 0.35 1.15
-------- ------- ------- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income. ........ (0.50) (0.48) (0.51) (0.53) (0.55)
-------- ------- ------- ------ ------
Net asset value, end of period ................. $ 9.18 $ 9.67 $ 9.44 $ 9.29 $ 9.47
======== ======= ======= ====== ======
Total return ................................... 0.02% 7.74% 7.29% 3.78% 13.33%
======== ======= ======= ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $156,864 $153,383 $115,114 $88,384 $71,780
Ratio of expenses to average net assets ........ 0.55% 0.55% 0.55% 0.56% 0.57%
Ratio of net investment income to average
net assets ................................... 5.16% 5.21% 5.61% 5.73% 6.15%
Portfolio turnover rate ........................ 408% 539% 285% 318% 255%

<CAPTION>
CLASS IB
---------------------------------------------
MAY 1, 1997*
YEAR ENDED DECEMBER 31, TO
------------------------------ DECEMBER 31,
1999 1998 1997
-------------- --------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ........... $ 9.66 $ 9.43 $ 9.27
-------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................ 0.47 0.47 0.32
Net realized and unrealized gain (loss) on
investments ................................. (0.49) 0.22 0.22
-------- ------ -------
Total from investment operations ............. (0.02) 0.69 0.54
-------- ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income. ........ (0.49) (0.46) (0.38)
-------- ------ -------
Net asset value, end of period ................. $ 9.15 $ 9.66 $ 9.43
======== ====== =======
Total return ................................... (0.23)% 7.48% 5.83%(b)
======== ====== =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) .............. $45,911 $30,898 $5,052
Ratio of expenses to average net assets ........ 0.80% 0.80% 0.81%(a)
Ratio of net investment income to average
net assets ................................... 4.91% 4.87% 5.15%(a)
Portfolio turnover rate ........................ 408% 539% 285%
</TABLE>

<PAGE>

- -----
87
- --------------------------------------------------------------------------------

ALLIANCE INTERNATIONAL PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
---------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------- APRIL 3, 1995*
TO
DECEMBER 31,
1999 1998 1997 1996 1995
------------ ------------ ------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 11.13 $ 10.27 $ 11.50 $ 10.87 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.08 0.09 0.10 0.13 0.14
Net realized and unrealized
gain (loss) on
investments and foreign
currency transactions .......... 4.07 0.97 (0.45) 0.94 0.98
------- ------- ------- ------- -------
Total from investment
operations ..................... 4.15 1.06 (0.35) 1.07 1.12
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. - (0.20) (0.32) (0.10) (0.07)
Dividends in excess of net
investment income .............. - - - (0.09) (0.13)
Distributions from realized
gains .......................... (0.25) - (0.56) (0.25) (0.05)
Tax return of capital
distributions .................. - - - - -
------- ------- ------- ------- -------
Total dividends and
distributions .................. (0.25) (0.20) (0.88) (0.44) (0.25)
------- ------- ------- ------- -------
Net asset value, end of period..... $ 15.03 $ 11.13 $ 10.27 $ 11.50 $ 10.87
======= ======= ======= ======= =======
Total return ...................... 37.31% 10.57% (2.98)% 9.82% 11.29%(b)
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $268,541 $204,767 $190,611 $151,907 $28,684
Ratio of expenses to average
net assets ...................... 1.08% 1.06% 1.08% 1.06% 1.03%(a)
Ratio of net investment
income to average net
assets .......................... 0.70% 0.81% 0.83% 1.10% 1.71%(a)
Portfolio turnover rate ........... 152% 59% 59% 48% 56%

<CAPTION>
CLASS IB
-----------------------------------------------
MAY 1, 1997*
YEAR ENDED DECEMBER 31, TO
---------------------------- DECEMBER 31,
1999 1998 1997
-------------- ------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of
period .......................... $ 11.11 $ 10.26 $ 11.39
--------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.04 0.05 0.02
Net realized and unrealized
gain (loss) on
investments and foreign
currency transactions .......... 4.06 0.98 (0.31)
--------- -------- --------
Total from investment
operations ..................... 4.10 1.03 (0.29)
--------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net
investment income .............. - (0.18) (0.28)
Dividends in excess of net
investment income .............. - - -
Distributions from realized
gains .......................... (0.25) - (0.56)
Tax return of capital
distributions .................. - - -
--------- -------- --------
Total dividends and
distributions .................. (0.25) (0.18) (0.84)
--------- -------- --------
Net asset value, end of period..... $ 14.96 $ 11.11 $ 10.26
========= ======== ========
Total return ...................... 36.90% 10.30% (2.54)%(b)
========= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's) ......................... $18,977 $7,543 $3,286
Ratio of expenses to average
net assets ...................... 1.33% 1.31% 1.38%(a)
Ratio of net investment
income to average net
assets .......................... 0.36% 0.44% 0.20%(a)
Portfolio turnover rate ........... 152% 59% 59%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
88
- --------------------------------------------------------------------------------

ALLIANCE MONEY MARKET PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
1999 1998 1997 1996 1995
--------------- -------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .............................. $ 10.22 $ 10.18 $ 10.17 $ 10.16 $ 10.14
---------- --------- --------- ---------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.51 0.53 0.54 0.54 0.57
Net realized and unrealized
gain (loss) on investments ......... - - - (0.01) -
---------- --------- --------- ---------- ---------
Total from investment
operations ......................... 0.51 0.53 0.54 0.53 0.57
---------- --------- --------- ---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. (0.45) (0.49) (0.53) (0.52) (0.55)
Dividends in excess of net
investment income .................. - - - - -
Dividends from realized gains ....... - - - - -
---------- --------- --------- ---------- ---------
Total dividends and
distributions ...................... (0.45) (0.49) (0.53) (0.52) (0.55)
---------- --------- --------- ---------- ---------
Net asset value, end of period ........ $ 10.28 $ 10.22 $ 10.18 $ 10.17 $ 10.16
========== ========= ========= ========== =========
Total return .......................... 4.96% 5.34% 5.42% 5.33% 5.74%
========== ========= ========= ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $883,988 $723,311 $449,960 $463,422 $386,691
Ratio of expenses to average net
assets .............................. 0.37% 0.37% 0.39% 0.43% 0.44%
Ratio of net investment income to
average net assets .................. 4.91% 5.13% 5.28% 5.17% 5.53%

<CAPTION>
CLASS IB
-----------------------------------------------------------------
OCTOBER 2,
YEAR ENDED DECEMBER 31, 1996* TO
------------------------------------------------ DECEMBER 31,
1999 1998 1997 1996
--------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period .............................. $ 10.21 $ 10.17 $ 10.16 $ 10.16
---------- ----------- ---------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.49 0.49 0.52 0.11
Net realized and unrealized
gain (loss) on investments ......... (0.01) 0.02 - 0.01
---------- ----------- ---------- ---------
Total from investment
operations ......................... 0.48 0.51 0.52 0.12
---------- ----------- ---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. (0.44) (0.47) (0.51) (0.02)
Dividends in excess of net
investment income .................. - - - (0.10)
Dividends from realized gains ....... - - - -
---------- ----------- ---------- ---------
Total dividends and
distributions ...................... (0.44) (0.47) (0.51) (0.12)
---------- ----------- ---------- ---------
Net asset value, end of period ........ $ 10.25 $ 10.21 $ 10.17 $ 10.16
========== =========== ========== =========
Total return .......................... 4.71% 5.08% 5.16% 1.29%(b)
========== =========== ========== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $559,713 $386,718 $123,675 $3,184
Ratio of expenses to average net
assets .............................. 0.62% 0.62% 0.63% 0.67%(a)
Ratio of net investment income to
average net assets .................. 4.68% 4.82% 5.02% 4.94%(a)
</TABLE>

<PAGE>

- -----
89
- --------------------------------------------------------------------------------

ALLIANCE QUALITY BOND PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period .............................. $ 9.84 $ 9.74 $ 9.49 $ 9.61 $ 8.72
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.54 0.55 0.60 0.57 0.57
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ....................... (0.74) 0.28 0.24 (0.07) 0.88
------- ------- ------- ------- -------
Total from investment
operations ......................... (0.20) 0.83 0.84 0.50 1.45
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. (0.50) (0.53) (0.59) (0.60) (0.56)
Dividends in excess of net
investment income .................. - - - (0.02) -
Distributions from realized
gains .............................. (0.03) (0.20) - - -
Tax return of capital
distributions ...................... - - - - -
------- ------- ------- ------- -------
Total dividends and
distributions ...................... (0.53) (0.73) (0.59) (0.62) (0.56)
------- ------- ------- ------- -------
Net asset value, end of period ........ $ 9.11 $ 9.84 $ 9.74 $ 9.49 $ 9.61
======= ======= ======= ======= =======
Total return .......................... (2.00)% 8.69% 9.14% 5.36% 17.02%
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $329,895 $322,418 $203,233 $155,023 $157,443
Ratio of expenses to average net
assets .............................. 0.56% 0.57% 0.57% 0.59% 0.59%
Ratio of net investment income to
average net assets .................. 5.64% 5.48% 6.19% 6.06% 6.13%
Portfolio turnover rate ............... 147% 194% 374% 431% 411%

<CAPTION>
CLASS 1B
-------------------------------
JULY 8, 1998*
YEAR ENDED TO
DECEMBER 31, DECEMBER 31,
1999 1998
-------------- ----------------
<S> <C> <C>
Net asset value, beginning of
period .............................. $ 9.84 $ 9.90
-------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income ............... 0.52 0.25
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ....................... (0.75) 0.14
-------- ---------
Total from investment
operations ......................... (0.23) 0.39
-------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment
income ............................. (0.49) (0.25)
Dividends in excess of net
investment income .................. - -
Distributions from realized
gains .............................. (0.03) (0.20)
Tax return of capital
distributions ...................... - -
-------- ---------
Total dividends and
distributions ...................... (0.52) (0.45)
-------- ---------
Net asset value, end of period ........ $ 9.09 $ 9.84
======== =========
Total return .......................... (2.25)% 4.05%(b)
======== =========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ..... $1,094 $10
Ratio of expenses to average net
assets .............................. 0.81% 0.81%(a)
Ratio of net investment income to
average net assets .................. 5.39% 5.06%(a)
Portfolio turnover rate ............... 147% 194%
</TABLE>

------------------------- EQ Advisors Trust

<PAGE>

- -----
90
- --------------------------------------------------------------------------------

ALLIANCE SMALL CAP GROWTH PORTFOLIO(D)(E):

<TABLE>
<CAPTION>
CLASS IA
------------------------------------------
YEAR ENDED DECEMBER 31, MAY 1, 1997*
------------------------ TO
1999 1998 DECEMBER 31, 1997
------------ ----------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ..... $ 11.82 $ 12.35 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ........... (0.05) 0.01 0.01
Net realized and unrealized gain
(loss) on investments ................. 3.34 (0.54) 2.65
------- ------- -------
Total from investment operations ....... 3.29 (0.53) 2.66
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................ - - (0.01)
Dividends in excess of net
investment income ..................... - - -
Distributions from realized gains ...... - - (0.30)
Tax return of capital distributions .... - - -
------- ------- -------
Total dividends and distributions ...... - - (0.31)
------- ------- -------
Net asset value, end of period ........... $ 15.11 $ 11.82 $ 12.35
======= ======= =======
Total return ............................. 27.75% (4.28)% 26.74%(b)
======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $241,000 $198,360 $94,676
Ratio of expenses to average net
assets ................................. 0.95% 0.96% 0.95%(a)
Ratio of net investment income (loss)
to average net assets .................. (0.40)% 0.08% 0.10%(a)
Portfolio turnover rate .................. 221% 94% 96%

<CAPTION>
CLASS IB
-------------------------------------------
YEAR ENDED DECEMBER 31, MAY 1, 1997*
------------------------- TO
1999 1998 DECEMBER 31, 1997
------------- ----------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ..... $ 11.79 $ 12.34 $ 10.00
-------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ........... (0.08) (0.02) (0.01)
Net realized and unrealized gain
(loss) on investments ................. 3.32 (0.53) 2.65
-------- ------- --------
Total from investment operations ....... 3.24 (0.55) 2.64
-------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income ................................ - - -
Dividends in excess of net
investment income ..................... - - -
Distributions from realized gains ...... - - (0.30)
Tax return of capital distributions .... - - -
-------- ------- --------
Total dividends and distributions ...... - - (0.30)
-------- ------- --------
Net asset value, end of period ........... $ 15.03 $ 11.79 $ 12.34
======== ======= ========
Total return ............................. 27.46% (4.44)% 26.57%(b)
======== ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) ........ $162,331 $112,254 $46,324
Ratio of expenses to average net
assets ................................. 1.20% 1.20% 1.15%(a)
Ratio of net investment income (loss)
to average net assets .................. (0.65)% (0.17)% (0.12)%(a)
Portfolio turnover rate .................. 221% 94% 96%
</TABLE>

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* Commencement of Operations
+ The amount shown for a share outstanding throughout the period does not
accord with the aggregate net gains on investments for that period
because of the timing of sales and repurchases of the Portfolio shares in
relation to fluctuating market value of the investments in the Portfolio.
(a) Annualized
(b) Total return is not annualized.

<PAGE>
(c) Reflects overall Portfolio ratios for investment income and
non-class specific expense.
(d) On October 18, 1999, this Portfolio received, through a substitution
transaction, the assets and liabilities of the Hudson River Trust
Portfolio that followed the same investment objectives as this
Portfolio. The information for each of the preceding periods is that
of the predecessor Hudson River Trust Portfolio. Information for the
year ended December 31, 1999 includes the results of operations of
the predecessor Hudson River Trust Portfolio from January 1, 1999
through October 17, 1999.
(e) Net investment income and capital changes per share are based on
monthly average shares outstanding.

<PAGE>

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If you wish to know more, you will find additional information about the Trust
and its Portfolios in the following documents, which are available, free of
charge by calling our toll-free number at 1-800-528-0204:

ANNUAL AND SEMI-ANNUAL REPORTS

The Annual and Semi-Annual Reports include more information about the Trust's
performance and are available upon request free of charge. The Annual Reports
usually includes performance information, a discussion of market conditions and
the investment strategies that affected the Portfolios' performance during the
last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI)

The SAI, dated May 1, 2000, is incorporated into this Prospectus by reference
and is available upon request free of charge by calling our toll free number at
1-800-528-0204.

You may visit the SEC's website at www.sec.gov to view the SAI and other
information about the Trust. You can also review and copy information about the
Trust, including the SAI, at the SEC's Public Reference Room in Washington, D.C.
or by electronic request at [email protected] or by writing the SEC's Public
Reference Section, Washington, D.C. 20549-0102. You may have to pay a
duplicating fee. To find out more about the Public Reference Room, call the SEC
at 1-202-942-8090.

Investment Company Act File Number: 811-07953