<PAGE>
A Message To Our Contract Owners:
We are pleased to forward this combined Semiannual Report of CML Variable
Annuity Account A (the "Separate Account") and the Growth Portfolio of the
Panorama Series Fund, Inc. for the period ended June 30, 1996.
The Semiannual Report for the Separate Account begins on page 2. As of
June 30, 1996, the Separate Account had net assets of $12,926,996 and the
accumulation unit value for the Separate Account was $10.72.
The Semiannual Report for the Growth Portfolio of the Panorama Series Fund, Inc.
begins on page 5.
We appreciate the interest and confidence you have shown in the Separate
Account.
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
/s/ Thomas B. Wheeler
Thomas B. Wheeler
Chairman and Chief Executive Officer
August 1, 1996
1
<PAGE>
CML Variable Annuity - Account A
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
<TABLE>
ASSETS
<S> <C>
Investment in Panorama Fund Growth Portfolio 4,899,597 shares at value
(Identified cost $8,472,432) (Notes 3A and 3B)........................................................... $13,027,018
Cash...................................................................................................... 2,112
-----------
Total assets........................................................................................... 13,029,130
-----------
LIABILITIES
Payable to Massachusetts Mutual Life
Insurance Company........................................................................................ 102,134
-----------
NET ASSETS................................................................................................ $12,926,996
===========
Net assets consist of:
1,170,859 accumulation units at $10.72 per unit........................................................... $12,550,645
Annuity reserves (Note 3D)................................................................................ 376,351
-----------
Net assets............................................................................................. $12,926,996
===========
NET ASSET VALUE PER ACCUMULATION UNIT
June 30, 1996............................................................................................ $ 10.72
June 30, 1995............................................................................................ 8.73
June 30, 1994............................................................................................ 7.11
June 30, 1993............................................................................................ 6.89
June 30, 1992............................................................................................ 5.54
</TABLE>
See Notes to Financial Statements.
2
<PAGE>
CML Variable Annuity - Account A
STATEMENT OF OPERATIONS
For The Six Months Ended June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
Investment income
Dividends (Note 3B)............................................................................... $ 119,810
Expenses
Mortality and expense risk fees (Note 4).......................................................... 32,175
-----------
Net investment income (Note 3C)................................................................... 87,635
-----------
Net realized and unrealized gain on investments
Net realized gain on investments (Notes 3B and 3C)................................................ 468,333
Change in net unrealized appreciation on investments.............................................. 251,754
-----------
Net gain on investments........................................................................... 720,087
-----------
Net increase in net assets resulting from operations.............................................. $ 807,722
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For The Six Months Ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss)..................................................... $ 87,635 $ (27,052)
Net realized gain on investments................................................. 468,333 50,842
Change in net unrealized appreciation/depreciation on investments................ 251,754 1,797,342
----------- -----------
Net increase in net assets resulting from operations............................. 807,722 1,821,132
----------- -----------
Capital transactions:
Net contract payments............................................................ 12,299 20,883
Withdrawal of funds.............................................................. (769,611) (229,836)
----------- -----------
Net decrease in net assets resulting from capital transactions................... (757,312) (208,953)
----------- -----------
Total increase.................................................................... 50,410 1,612,179
NET ASSETS, at beginning of the year.............................................. 12,876,586 10,276,073
----------- -----------
NET ASSETS, at end of the period.................................................. $12,926,996 $11,888,252
=========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
CML Variable Annuity - Account A
Notes To Financial Statements
(Unaudited)
1. HISTORY
CML Variable Annuity Account A (the "Separate Account") is a separate
investment account established by Connecticut Mutual Life Insurance Company
("CML"). On February 29, 1996, CML merged with and into the Massachusetts
Mutual Life Insurance Company ("MassMutual"). Upon the merger, CML's
existence ceased, MassMutual became the surviving company under the name
Massachusetts Mutual Life Insurance Company. CML Variable Annuity Account A
became a Separate Account of MassMutual. The Separate Account operates as a
registered unit investment trust pursuant to the Investment Company Act of
1940 and the rules promulgated thereunder.
2. INVESTMENT OF THE SEPARATE ACCOUNT'S ASSETS
The Separate Account invests in shares of the Growth Portfolio. The Growth
Portfolio is one of nine Portfolios of the Panorama Series Fund, Inc.
(the "Fund"). The Fund is a registered, open-end, diversified management
investment company for which OppenheimerFunds, Inc. is the investment
advisor.
3. SIGNIFICANT ACCOUNTING POLICIES
A. Investment Valuation
The investment in the Growth Portfolio is stated at market value which is the
net assets of the Growth Portfolio.
B. Account for Investments
Investment transactions are accounted for on trade date and identified cost
is the basis followed in determining the cost of investments sold for both
financial statement and federal tax purposes. Dividend income is recorded on
the ex-dividend date.
C. Federal Income Taxes
Operations of the Separate Account form a part of the total operations of
MassMutual, and the Separate Account is not taxed separately. MassMutual is
taxed as a life insurance company under the provisions of the 1986 Internal
Revenue Code, as amended. The Separate Account will not be taxed as a
"regulated investment company" under Subchapter M of the Internal Revenue
Code. Under existing federal law, no taxes are payable on investment income
and realized capital gains attributable to contracts which depend on the
Separate Account's investment performance (the "Contracts"). Accordingly, no
provision for federal income tax has been made. MassMutual may, however, make
such a charge in the future if an unanticipated change of current law results
in a company tax liability attributable to the Separate Account.
D. Annuity Reserves
Annuity reserves are computed according to the Progressive Annuity Table at
3 1/2% interest, adjusted for the investment performance of the Separate
Account.
E. Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
4. CHARGES
For assuming mortality and expense risks, MassMutual deducts a charge equal,
on an annual basis, to .49% of the daily net asset value of the Separate
Account's assets.
4
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
OBJECTIVE
THE GROWTH PORTFOLIO seeks long term growth of capital by investing primarily in
common stocks with low price-earnings ratios and better-than-anticipated
earnings. Realization of current income is a secondary consideration.
NARRATIVE BY PETER ANTOS AND TEAM, PORTFOLIO MANAGERS
The Growth portfolio performed well over the past six months, although it lagged
the broader market slightly. During the period, traditional high growth stocks
led the market, primarily due to investors' concerns about the overall slower
U.S. economic growth. In contrast, we buy stocks that have either low
price/earnings ratios or positive earnings surprises. This is an investment
strategy that has been very successful over time. Part of the long-term appeal
of this strategy is that it leads us to stocks we expect will perform well in
the future and allows us to buy them when their prices are discounted. However,
these types of stocks were somewhat overlooked by investors over the period.
Despite the fact that our style of investing was temporarily out-of-favor, some
of our investments performed extremely well. For example, we benefited most from
our aerospace holdings. We bought into the aerospace industry when it was
out-of-favor due to concerns regarding cuts in defense spending. Cost-cutting,
consolidations and a pick up in demand from commercial airlines, however, raised
valuations. Therefore, we had better than expected earnings.
Companies in the retail industry were also out-of-favor. This was due to
generally slow and discount-oriented consumer activity and a high degree of
competition. By owning companies that focused on their profitable core
businesses and tended to be leaner and more cost-efficient than their
competitors. The retailers that did well for us generated good cash flows and
used their cash in ways that benefited investors - such as stock buybacks and
strategic acquisitions.
On the other hand, in a market that was decidedly up this year, and one in which
bond yields rose, yield-oriented equity investments were relatively poor
performers. Part of the reason for the lag was that stock investors focused
their attention on capital appreciation potential rather than income. At the
same time, rising interest rates made bonds more attractive to yield investors.
The Fund suffered from our exposure to two higher yielding sectors of the
market, financial stocks and utilities. Though earnings for the companies we
owned in these areas were good, we reduced some of our holdings.
As we move through the remainder of the year, we're sticking to our investment
discipline. We believe that having a consistent buy and sell approach is the
best way to profit from the market's various phases. Within the portfolio, we
decreased our financial and utility stocks and are adding more cyclical, or
economically-sensitive, stocks as well as technology stocks. Here again, we look
for well-managed, strong companies that are temporarily out-of-favor with the
market. Our goal is to buy them at a low cost and then profit when their
strengths are recognized.
We feel our investment strategy has produced an impressive long-term track
record and reflects a proven investment technique. It's also a relatively
conservative way to take advantage of the market's growth potential. While our
year-to-date figures may be lagging the market slightly, we are investing in a
manner that may incur less risk and still allow the portfolio to enjoy long term
growth of capital.
We appreciate your confidence in Panorama Series Fund, Inc. - Growth Portfolio.
We look forward to helping you reach your financial goals in the future.
<PAGE>
Panorama Series Fund, Inc.
Statement of Assets and Liabilities
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Growth
Portfolio
------------
<S> <C>
ASSETS:
Investments, at value (cost *) - see accompanying
statement $485,052,544
Cash 91,497
Receivables:
Investments sold 11,018,726
Shares of capital stock sold 913,011
Dividends and interest 695,792
------------
Total assets 497,771,570
------------
LIABILITIES:
Payables and other liabilities:
Investments purchased 6,890,172
Shares of capital stock redeemed 162,864
Other 133,940
------------
Total liabilities 7,186,976
------------
NET ASSETS $490,584,594
============
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock $184,514
Additional paid-in capital 386,000,596
Undistributed net investment income 1,996,691
Accumulated net realized gain on transactions 40,063,240
Net unrealized appreciation on investments - Note 3 62,339,553
------------
NET ASSETS $490,584,594
============
SHARES OF CAPITAL STOCK OUTSTANDING 184,513,935
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $2.66
*Cost $422,712,991
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Panorama Series Fund, Inc.
Statement of Operations
For the Six Months Ended June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Growth
Portfolio
------------
<S> <C>
INVESTMENT INCOME:
Dividends (net of withholding taxes of *) $ 3,818,639
Interest (net of withholding taxes of **) 1,346,973
------------
Total income 5,165,612
------------
EXPENSES:
Management fees - Note 4 1,321,946
Custodian fees and expenses 24,949
Directors' fees and expenses 23,068
Registration and filing fees 21,643
Legal and auditing fees 7,058
------------
Total expenses 1,398,664
------------
NET INVESTMENT INCOME 3,766,948
------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain from investments 39,711,549
Net change in unrealized appreciation or
depreciation on investments (17,082,813)
------------
Net realized and unrealized gain 22,628,736
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 26,395,684
============
*Dividends $4,510
**Interest $1,593
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Panorama Series Fund, Inc.
Statements of Changes in Net Assets
For the Six Months Ended June 30, 1996 (Unaudited) and the Year Ended December
31, 1995
<TABLE>
<CAPTION>
Growth
Portfolio
-----------------------------------
1996 1995
-----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 3,766,948 $ 6,203,284
Net realized gain 39,711,549 23,356,603
Net change in unrealized appreciation or depreciation (17,082,813) 67,825,683
-----------------------------------
Net increase in net assets resulting from operations 26,395,684 97,385,570
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (1,827,903) (6,148,312)
Distributions from net realized gain (2,683,361) (21,759,918)
CAPITAL STOCK TRANSACTIONS:
Net increase in net assets resulting from
capital stock transactions - Note 2 62,765,052 106,262,512
-----------------------------------
NET ASSETS:
Total increase 84,649,472 175,739,852
Beginning of period 405,935,122 230,195,270
-----------------------------------
End of period $490,584,594 $405,935,122
===================================
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Panorama Series Fund, Inc. - Growth Portfolio
Financial Highlights
June 30, 1996
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 1996 Year Ended December 31,
(Unaudited) 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $2.53 $1.97 $2.08 $1.91 $1.87 $1.46
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 .04 .03 .04 .04 .04
Net realized and unrealized gain (loss) .13 .71 (.04) .36 .19 .51
- -------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .15 .75 (.01) .40 .23 .55
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.04) (.03) (.04) (.04) (.04)
Distributions from net realized gain (.01) (.15) (.07) (.19) (.15) (.10)
- -------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.02) (.19) (.10) (.23) (.19) (.14)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.66 $2.53 $1.97 $2.08 $1.91 $1.87
============================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(1) 6.11% 38.06% (0.51)% 21.22% 12.36% 37.53%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $490,585 $405,935 $230,195 $165,775 $101,215 $75,058
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $461,368 $303,193 $198,879 $131,292 $85,003 $62,472
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.64%(2) 2.01% 1.87% 2.30% 2.19% 2.16%
Expenses 0.61%(2) 0.66% 0.67% 0.69% 0.76% 0.80%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 52.3% 69.3% 97.3% 97.6% 136.1% 142.9%
Average brokerage commission rate(4) $0.0688 -- -- -- -- --
</TABLE>
(1) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
(2) Annualized.
(3) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $243,044,179 and $212,024,164, respectively.
(4) Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
<PAGE>
Panorama Series Fund, Inc. - Growth Portfolio
Statement of Investments
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Principal Market Value
Amount (Note 1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Notes - 9.3%
- ----------------------------------------------------------------------------------------------
Asset Securitization Cooperative Corp., 5.36%, 7/9/96 $ 4,435,000 $ 4,430,378
----------------------------------------------------------------------------------------
Barnett Banks, Inc., 5.33%, 7/1/96 5,000,000 5,000,000
----------------------------------------------------------------------------------------
Countrywide Home Loan, 5.40%, 7/11/96 2,500,000 2,496,251
----------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.52%, 7/1/96 20,900,000 20,900,000
----------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.27%, 7/1/96 4,900,000 4,900,000
----------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.39%, 7/2/96 4,060,000 4,059,393
----------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.34%, 7/3/96 1,960,000 1,959,418
----------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.38%, 7/9/96 2,000,000 1,997,609
-----------
Total Short-Term Notes 45,743,049
Shares
<CAPTION>
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks - 89.6%
- ----------------------------------------------------------------------------------------------
Basic Materials - 4.8%
- ----------------------------------------------------------------------------------------------
Chemicals - 3.7%
----------------------------------------------------------------------------------------
Cabot Corp. 191,300 4,686,850
----------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 90,400 5,989,000
----------------------------------------------------------------------------------------
Union Carbide Corp. 151,800 6,034,050
----------------------------------------------------------------------------------------
W.R. Grace & Co. 17,400 1,233,225
-----------
17,943,125
- ----------------------------------------------------------------------------------------------
Metals - 1.1%
----------------------------------------------------------------------------------------
UCAR International, Inc. (1) 125,600 5,228,100
- ----------------------------------------------------------------------------------------------
Consumer Cyclicals - 14.2%
- ----------------------------------------------------------------------------------------------
Autos & Housing - 3.4%
----------------------------------------------------------------------------------------
Black & Decker Corp. 109,000 4,210,125
----------------------------------------------------------------------------------------
Chrysler Corp. 104,100 6,454,200
----------------------------------------------------------------------------------------
Ford Motor Co. 190,300 6,160,962
-----------
16,825,287
- ----------------------------------------------------------------------------------------------
Leisure & Entertainment - 3.3%
----------------------------------------------------------------------------------------
AMR Corp. 77,300 7,034,300
----------------------------------------------------------------------------------------
Grand Casinos, Inc. (1) 149,300 3,844,475
----------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (1) 136,700 5,399,650
-----------
16,278,425
- ----------------------------------------------------------------------------------------------
Retail: General - 6.5%
----------------------------------------------------------------------------------------
Eckerd Corp. (1) 205,500 4,649,437
----------------------------------------------------------------------------------------
Federated Department Stores, Inc. (1) 109,100 3,723,037
----------------------------------------------------------------------------------------
Price/Costco, Inc. (1) 231,100 4,997,537
----------------------------------------------------------------------------------------
Sears Roebuck & Co. 139,300 6,773,462
----------------------------------------------------------------------------------------
U.S. Industries, Inc. (1) 316,900 7,645,212
----------------------------------------------------------------------------------------
Waban, Inc. (1) 176,200 4,206,775
-----------
31,995,460
- ----------------------------------------------------------------------------------------------
Retail: Specialty - 1.0%
----------------------------------------------------------------------------------------
Tandy Corp. 102,300 4,846,462
- ----------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 12.0%
- ----------------------------------------------------------------------------------------------
Beverages - 1.6%
----------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 104,000 7,800,000
</TABLE>
<PAGE>
Panorama Series Fund, Inc. - Growth Portfolio
Statement of Investments (Continued)
<TABLE>
<CAPTION>
Market Value
Shares (Note 1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Food - 5.5%
----------------------------------------------------------------------------------------
American Stores Co. 215,300 $ 8,881,125
----------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 375,400 7,179,525
----------------------------------------------------------------------------------------
Dole Food Co. 71,400 3,070,200
----------------------------------------------------------------------------------------
Kroger Co. (1) 196,800 7,773,600
-----------
26,904,450
- ----------------------------------------------------------------------------------------------
Healthcare/Drugs - 1.4%
----------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 78,700 7,083,000
- ----------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 1.9%
----------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 72,300 3,859,012
----------------------------------------------------------------------------------------
OrNda Healthcorp (1) 225,800 5,419,200
-----------
9,278,212
- ----------------------------------------------------------------------------------------------
Household Goods - 1.6%
----------------------------------------------------------------------------------------
Premark International, Inc. 125,900 2,329,150
----------------------------------------------------------------------------------------
Tupperware Corp. (1) 125,900 5,319,275
-----------
7,648,425
- ----------------------------------------------------------------------------------------------
Energy - 4.8%
- ----------------------------------------------------------------------------------------------
Oil-Integrated - 4.8%
----------------------------------------------------------------------------------------
Amoco Corp. 93,100 6,738,113
----------------------------------------------------------------------------------------
Chevron Corp. 125,300 7,392,700
----------------------------------------------------------------------------------------
Mobil Corp. 82,600 9,261,525
-----------
23,392,338
- ----------------------------------------------------------------------------------------------
Financial - 13.2%
- ----------------------------------------------------------------------------------------------
Banks - 7.7%
----------------------------------------------------------------------------------------
Bank of Boston Corp. 168,100 8,320,950
----------------------------------------------------------------------------------------
BankAmerica Corp. 135,600 10,271,700
----------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 98,644 6,966,733
----------------------------------------------------------------------------------------
PNC Bank Corp. 208,200 6,193,950
----------------------------------------------------------------------------------------
Wells Fargo & Co. 24,500 5,852,438
-----------
37,605,771
- ----------------------------------------------------------------------------------------------
Diversified Financial - 3.4%
----------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 43,400 3,710,700
----------------------------------------------------------------------------------------
Salomon, Inc. 299,500 13,178,000
-----------
16,888,700
- ----------------------------------------------------------------------------------------------
Insurance - 2.1%
----------------------------------------------------------------------------------------
General Re Corp. 5,500 837,375
----------------------------------------------------------------------------------------
TIG Holdings, Inc. 119,900 3,477,100
----------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A (1) 210,400 5,970,100
-----------
10,284,575
- ----------------------------------------------------------------------------------------------
Industrial - 8.2%
- ----------------------------------------------------------------------------------------------
Manufacturing - 8.2%
----------------------------------------------------------------------------------------
AGCO Corp. 263,800 7,320,450
----------------------------------------------------------------------------------------
Case Corp. 171,600 8,236,800
----------------------------------------------------------------------------------------
Harnischfeger Industries, Inc. 123,400 4,103,050
----------------------------------------------------------------------------------------
Mark IV Industries, Inc. 118,518 2,681,470
----------------------------------------------------------------------------------------
Textron, Inc. 129,600 10,351,800
----------------------------------------------------------------------------------------
Tyco International Ltd. 185,400 7,555,050
-----------
40,248,620
</TABLE>
<PAGE>
Panorama Series Fund, Inc. - Growth Portfolio
Statement of Investments (Continued)
<TABLE>
<CAPTION>
Market Value
Shares (Note 1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Technology - 19.9%
- ----------------------------------------------------------------------------------------------
Aerospace/Defense - 9.6%
----------------------------------------------------------------------------------------
General Dynamics Corp. 108,100 $ 6,702,200
----------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 128,000 4,784,000
----------------------------------------------------------------------------------------
Lockheed Martin Corp. 110,452 9,277,968
--- -------------------------------------------------------------------------------------
McDonnell Douglas Corp. 206,400 10,010,400
----------------------------------------------------------------------------------------
Rockwell International Corp. 146,600 8,392,850
----------------------------------------------------------------------------------------
TRW, Inc. 89,500 8,043,813
------------
47,211,231
- ----------------------------------------------------------------------------------------------
Computer Hardware - 6.0%
----------------------------------------------------------------------------------------
Dell Computer Corp. (1) 83,000 4,222,625
----------------------------------------------------------------------------------------
Gateway 2000, Inc. (1) 74,200 2,522,800
----------------------------------------------------------------------------------------
Storage Technology Corp. (New) (1) 261,100 9,987,075
----------------------------------------------------------------------------------------
Xerox Corp. 237,900 12,727,650
------------
29,460,150
- ----------------------------------------------------------------------------------------------
Electronics - 2.8%
----------------------------------------------------------------------------------------
Intel Corp. 65,800 4,832,188
----------------------------------------------------------------------------------------
Varian Associates, Inc. 103,100 5,335,425
----------------------------------------------------------------------------------------
Waters Corp. (1) 108,600 3,583,800
------------
13,751,413
- ----------------------------------------------------------------------------------------------
Telecommunications-Technology - 1.5%
----------------------------------------------------------------------------------------
AT&T Corp. 116,900 7,247,800
- ----------------------------------------------------------------------------------------------
Utilities - 12.5%
- ----------------------------------------------------------------------------------------------
Electric Utilities - 6.0%
----------------------------------------------------------------------------------------
American Electric Power Co., Inc. 113,800 4,850,725
----------------------------------------------------------------------------------------
Calenergy, Inc. (1) 251,000 6,400,500
----------------------------------------------------------------------------------------
Entergy Corp. 221,300 6,279,388
----------------------------------------------------------------------------------------
FPL Group, Inc. 116,700 5,368,200
----------------------------------------------------------------------------------------
Texas Utilities Co. 149,400 6,386,850
------------
29,285,663
- ----------------------------------------------------------------------------------------------
Gas Utilities - 4.2%
----------------------------------------------------------------------------------------
Columbia Gas System, Inc. (The) 204,800 10,675,200
----------------------------------------------------------------------------------------
PanEnergy Corp. 303,100 9,964,413
------------
20,639,613
- ----------------------------------------------------------------------------------------------
Telephone Utilities - 2.3%
----------------------------------------------------------------------------------------
Ameritech Corp. 79,400 4,714,375
----------------------------------------------------------------------------------------
GTE Corp. 150,800 6,748,300
------------
11,462,675
------------
Total Common Stocks 439,309,495
----------------------------------------------------------------------------------------
Total Investments, at Value (Cost $422,712,991) 98.9% 485,052,544
----------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.1 5,532,050
------ ------------
Net Assets 100.0% $490,584,594
====== ============
</TABLE>
(1) Non-income producing security.
See accompanying Notes to Financial Statements.
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Growth Portfolio (the Fund), a series of Panorama Series Fund, Inc. (the
Company), is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. The Fund's investment
objective is to seek long-term growth of capital by investing primarily in
common stocks with low price-earnings ratios and better-than-anticipated
earnings. Until May 1, 1996, the Company was named Connecticut Mutual Financial
Services Series Fund I, Inc. On January 27, 1996, the policyholders of
Connecticut Mutual Life Insurance Company (CML) approved a merger of CML with
Massachusetts Mutual Life Insurance Company (MML). In line with this change,
effective March 1, 1996, OppenheimerFunds, Inc. (the Manager) became the advisor
of Panorama Series Fund, Inc. The following is a summary of significant
accounting policies consistently followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange on
each trading day. Listed and unlisted securities for which such information is
regularly reported are valued at the last sale price of the day or, in the
absence of sales, at values based on the closing bid or asked price or the last
sale price on the prior trading day. Long-term and short-term "non-money
market" debt securities are valued by a portfolio pricing service approved by
the Board of Directors. Such securities which cannot be valued by the approved
portfolio pricing service are valued using dealer-supplied valuations provided
the Manager is satisfied that the firm rendering the quotes is reliable and that
the quotes reflect current market value, or are valued under consistently
applied procedures established by the Board of Directors to determine fair value
in good faith. Short-term "money market type" debt securities having a
remaining maturity of 60 days or less are valued at cost (or last determined
market value) adjusted for amortization to maturity of any premium or discount.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally segregated
in the Federal Reserve Book Entry System or to have segregated within the
custodian's vault, all securities held as collateral for repurchase agreements.
The market value of the underlying securities is required to be at least 102% of
the resale price at the time of purchase. If the seller of the agreement
defaults and the value of the collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of the collateral by the Fund
may be delayed or limited.
FEDERAL TAXES.
The Company intends for each Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income and net realized gain may differ for financial statement
and tax purposes. The character of the distributions made during the year from
net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gain (loss) was recorded by the
Fund.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SHARES OF CAPITAL STOCK
The Fund has authorized 150 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 30,558,457 $ 80,624,251 47,879,137 $113,288,953
Dividends and distributions
reinvested 1,696,733 4,511,263 11,118,683 27,908,230
Redeemed (8,477,973) (22,370,462) (14,920,252) (34,934,671)
---------- ------------ ----------- ------------
Net increase 23,777,217 $ 62,765,052 44,077,568 $106,262,512
========== ============ =========== ============
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At June 30, 1996, net unrealized appreciation on investments of $62,339,553 was
composed of gross appreciation of $66,607,058, and gross depreciation of
$4,267,505.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.625% of the first $300
million of net assets, 0.50% of the next $100 million and 0.45% of net assets in
excess of $400 million. Prior to March 1, 1996, management fees were paid to
G.R. Phelps & Co., Inc. (the former Manager). The Manager has agreed to
reimburse the Fund if aggregate expenses (with specified exceptions) exceed the
most stringent applicable regulatory limit on Fund expenses. Effective July 1,
1996, the Manager acts as the accounting agent for the Fund at an annual fee of
$15,000, plus out-of-pocket costs and expenses reasonably incurred. Prior to
July 1, accounting services fees were paid to State Street Bank and Trust Co.
