<PAGE>
A MESSAGE TO OUR CONTRACT OWNERS:
We are pleased to forward this combined Semiannual Report of the segment of
Massachusetts Mutual Variable Annuity Separate Account 1 (``Separate Account
1'') pertaining to Variable Annuity Fund 4 and Flex-Annuity IV (Qualified) (the
"Segments"), and the MML Series Investment Fund (``MML Trust''). These reports
are for the period of January 1 through June 30, 1995.
The Semiannual Report for the Segments begins on page 3. The Segments have net
assets of $373,123,971 as of June 30, 1995. Net asset values per accumulation
unit for the MML Equity, MML Money Market, MML Managed Bond and MML Blend
Divisions of the Segments at June 30, 1995 are shown in detail in the table on
page 3.
The Semiannual Report for the MML Trust begins on page 10. This report contains
a detailed description of the financial results of the four series of the MML
Trust -- MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund and MML
Blend Fund for the period of January 1 through June 30, 1995.
We appreciate the interest and confidence you have shown in Separate Account 1.
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
/s/ Thomas B. Wheeler
--------------------------------------------
Thomas B. Wheeler
President and Chief Executive Officer
August 1, 1995
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Massachusetts Mutual Variable Annuity Separate Account 1
Statement of Assets and Liabilities as of June 30, 1995 3
Statement of Operations For The Six Months Ended June 30, 1995 4
Statement of Changes in Net Assets For The Six Months Ended
June 30, 1995 and 1994 5
Notes to Financial Statements 6-9
MML Series Investment Fund
Our Message To You 10-11
Statement of Assets and Liabilities as of June 30, 1995 12
Statement of Operations for The Six Months Ended June 30, 1995 13
Statement of Changes in Net Assets For The Six Months Ended
June 30, 1995 and 1994 14
Financial Highlights 15-16
Schedule of Investments as of June 30, 1995
MML Equity Fund 17-19
MML Money Market Fund 20
MML Managed Bond Fund 21-23
MML Blend Fund 24-29
Notes to Financial Statements 30-32
</TABLE>
2
<PAGE>
MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 1
VARIABLE ANNUITY FUND 4 AND FLEX-ANNUITY IV (QUALIFIED)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
EQUITY MARKET BOND BLEND
DIVISION DIVISION DIVISION DIVISION
---------- --------- ---------- --------
<S> <C> <C> <C> <C>
ASSETS
Investment -- MML Series Investment Fund
Number of shares (Note 2) 4,330,566 12,755,667 1,412,998 12,107,468
============ ============ ============ ==============
Identified cost (Note 3B) $ 75,892,453 $ 15,705,667 $ 16,754,599 $ 191,302,890
============ ============ ============ ==============
Value (Note 3A) $103,133,521 $ 15,705,667 $ 17,307,824 $ 238,193,777
Dividends receivable -- 71,693 -- --
Receivable for accumulation units sold 2,025 939 1,091 73,042
Divisional Transfers pending settlement (51,029) -- 51,029 --
Other assets 929 336 130 1,444
------------ ------------ ------------ --------------
TOTAL ASSETS 103,085,446 15,778,635 17,360,074 238,268,263
------------ ------------ ------------ --------------
LIABILITIES
Redemptions pending settlement 66,996 -- 479 165,929
Annuitant mortality fluctuation reserve
(Note 3D) 7,235 2,841 3,610 7,455
Payable to Massachusetts Mutual Life
Insurance Company 302,699 47,348 48,434 715,421
TOTAL LIABILITIES 376,930 50,189 52,523 888,805
------------ ------------ ------------ --------------
NET ASSETS $102,708,516 $ 15,728,446 $ 17,307,551 $ 237,379,458
------------ ------------ ------------ --------------
NET ASSETS CONSIST OF:
Accumulation units -- value $102,467,346 $ 15,633,763 $ 17,187,232 $ 237,130,943
Annuity reserves (Note 3E) 241,170 94,683 120,319 248,515
------------ ------------ ------------ --------------
NET ASSETS $102,708,516 $ 15,728,446 $ 17,307,551 $ 237,379,458
============ ============ ============ ==============
Contract owners accumulation units
(Note 7) 17,171,012 7,626,627 5,397,280 69,346,154
============ ============ ============ ==============
NET ASSET VALUE PER ACCUMULATION UNIT
Variable-Annuity Fund 4 Contracts
(Note 5)
June 30, 1995 $ 6.33 $ 2.29 $ 3.61 $ 3.61
June 30, 1994 5.27 2.20 3.22 3.13
June 30, 1993 5.10 2.15 3.30 3.07
June 30, 1992 4.60 2.10 2.94 2.76
June 30, 1991 4.05 2.02 2.59 2.42
Flex-Annuity IV Contracts (Note 5)
June 30, 1995 $ 5.93 $ 2.00 $ 3.12 $ 3.41
June 30, 1994 4.97 1.92 2.80 2.97
June 30, 1993 4.83 1.89 2.87 2.92
June 30, 1992 4.37 1.86 2.57 2.65
June 30, 1991 3.87 1.80 2.28 2.33
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 1
VARIABLE ANNUITY FUND 4 AND FLEX-ANNUITY IV (QUALIFIED)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
EQUITY MARKET BOND BLEND
DIVISION DIVISION DIVISION DIVISION
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (Note 3B) $ 3,620 $ 449,797 $ 285,920 $ 2,360,316
EXPENSES
Mortality and expense risk fees (Note 4) 587,309 92,149 98,742 1,406,068
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) (Note 3C) (583,689) 357,648 187,178 954,248
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on investments (Notes
3B, 3C and 6) 1,656,168 -- 57,456 4,239,783
Net change in unrealized
appreciation of investments 13,048,059 -- 1,552,606 20,781,773
------------ ------------ ------------ ------------
NET GAIN ON INVESTMENTS 14,704,227 -- 1,610,062 25,021,556
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 14,120,538 $ 357,648 $ 1,797,240 $ 25,975,804
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT VARIABLE ANNUITY FUND 4
AND FLEX-ANNUITY IV (QUALIFIED)
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
---------------------------------------------------------- -------------------------
MML MML MML
MML MONEY MANAGED MML MML MONEY
EQUITY MARKET BOND BLEND EQUITY MARKET
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS (Note 10)
Operations:
Net investment
income (loss) $ (583,689) $ 357,648 $ 187,178 $ 954,248 $ (569,293) $ 185,445
Net realized gain
on investments 1,656,168 -- 57,456 4,239,783 983,807 --
Net change in
unrealized
appreciation/depreciation
of investments 13,048,059 -- 1,552,606 20,781,773 (1,033,418) --
------------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
net assets resulting from
operations 14,120,538 357,648 1,797,240 25,975,804 (618,904) 185,445
------------- ------------ ------------ ------------ ------------ ------------
Capital transactions:
(Note 7)
Net contract payments
(Note 5) 1,532,594 370,740 253,561 4,977,926 1,893,871 512,661
Reimbursement (payment) of
accumulation unit value
fluctuation (29,713) (3,852) (3,898) (69,130) (101) 178
Net charge (credit) to
annuitant mortality
fluctuation reserve
(Note 3D) 263 201 478 48 898 (118)
Administrative charges and
contingent deferred sales
charges (Note 5) (137,943) (19,629) (20,624) (398,656) (162,698) (27,553)
Withdrawal of funds (6,728,286) (2,070,945) (1,682,436) (22,202,149) (5,338,980) (2,292,897)
Annuity benefits (9,486) (4,534) (5,454) (10,159) (8,855) (5,457)
Divisional transfers 118,243 (292,263) 352,171 (178,151) 340,764 544,081
------------- ------------ ------------ ------------ ------------ ------------
Net decrease in
net assets resulting from
capital transactions (5,254,328) (2,020,282) (1,106,202) (17,880,271) (3,275,101) (1,269,105)
------------- ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) 8,866,210 (1,662,634) 691,038 8,095,533 (3,894,005) (1,083,660)
NET ASSETS, AT BEGINNING OF
THE YEAR 93,842,306 17,391,080 16,616,513 229,283,925 97,655,747 19,592,252
------------- ------------ ------------ ------------ ------------ ------------
NET ASSETS, AT END OF THE
PERIOD $ 102,708,516 $ 15,728,446 $ 17,307,551 $237,379,458 $ 93,761,742 $ 18,508,592
============= ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MML
MANAGED MML
BOND BLEND
DIVISION DIVISION
------------ ------------
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS (Note 10)
Operations:
Net investment
income (loss) $ 211,600 $ 690,621
Net realized gain
on investments 101,834 1,918,362
Net change in
unrealized
appreciation/depreciation
of investments (1,351,971) (6,006,460)
------------ ------------
Net increase (decrease) in
net assets resulting from
operations (1,038,537) (3,397,477)
------------ ------------
Capital transactions:
(Note 7)
Net contract payments
(Note 5) 249,276 5,675,588
Reimbursement (payment) of
accumulation unit value
fluctuation 921 (8,174)
Net charge (credit) to
annuitant mortality
fluctuation reserve
(Note 3D) 473 (3,592)
Administrative charges and
contingent deferred sales
charges (Note 5) (25,140) (432,187)
Withdrawal of funds (1,264,220) (12,469,077)
Annuity benefits (6,203) (9,040)
Divisional transfers (357,900) (526,945)
------------ ------------
Net decrease in
net assets resulting from
capital transactions (1,402,793) (7,773,427)
------------ ------------
TOTAL INCREASE (DECREASE) (2,441,330) (11,170,904)
NET ASSETS, AT BEGINNING OF
THE YEAR 20,339,792 246,508,270
------------ ------------
NET ASSETS, AT END OF THE
PERIOD $ 17,898,462 $235,337,366
============ ============
</TABLE>
5
<PAGE>
MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 1
VARIABLE ANNUITY FUND 4 AND FLEX-ANNUITY IV (QUALIFIED)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. HISTORY
Massachusetts Mutual Variable Annuity Separate Account 1 (``Separate Account
1'') is a separate investment account established on April 8, 1981 by
Massachusetts Mutual Life Insurance Company (``MassMutual''). Separate Account 1
operates as a registered unit investment trust pursuant to the Investment
Company Act of 1940 and the rules promulgated thereunder.
MassMutual maintains three segments within Separate Account 1. The segments are
Variable Annuity Fund 4, Flex-Annuity IV (Qualified) and Flex Extra (formerly
known as Flex-Annuity V) (Qualified). In prior years, the three aforementioned
segments were reported within Separate Account 1. However, these notes and the
financial statements presented herein, with the exception of Note 8, describe
and consist only of the Variable Annuity Fund 4, and Flex-Annuity IV (Qualified)
segments (the "Segments"). The segment of Separate Account 1 pertaining to Flex
Extra (Qualified) has other divisions in addition to those which invest in the
four series of shares of the MML Series Investment Fund. This change in
presentation has been made in order to provide information relevant to the
Variable Annuity Fund 4 and the Flex-Annuity IV (Qualified) contract owners.
This change in presentation does not impact the net asset values per
accumulation unit for each type of contract.
2. INVESTMENT OF THE SEGMENT'S ASSETS
Each segment has four divisions. The MML Equity Division invests in shares of
MML Equity Fund, the MML Money Market Division invests in shares of MML Money
Market Fund, the MML Managed Bond Division invests in shares of MML Managed Bond
Fund and the MML Blend Division invests in shares of MML Blend Fund.
MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund and MML Blend
Fund are the four series of shares of MML Series Investment Fund (the ``MML
Trust''). The MML Trust is a no-load, registered, open-end, diversified
management investment company for which MassMutual acts as investment manager.
Concert Capital Management, Inc. (``Concert Capital''), a wholly-owned
subsidiary of Babson Acquisition Corporation which is a controlled subsidiary of
MassMutual, serves as investment sub-advisor to the MML Equity Fund and the
Equity Sector of the MML Blend Fund.
3. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Segments in preparation of the financial statements in
conformity with generally accepted accounting principles.
A. INVESTMENT VALUATION
The investments in MML Equity Fund, MML Money Market Fund, MML Managed Bond
Fund and MML Blend Fund are each stated at market value which is the net asset
value of each of the respective funds.
B. ACCOUNTING 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 financial
statement purposes. Dividend income is recorded on the ex-dividend date.
C. FEDERAL INCOME TAXES
Operations of the Segments form a part of the total operations of MassMutual,
and the Segments are not taxed separately. MassMutual is taxed as a life
insurance company under the provisions of the 1986 Internal Revenue Code, as
amended. The Segments 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 Segment's investment performance. 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 Segments.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
D. ANNUITANT MORTALITY FLUCTUATION RESERVE
The Segments maintain a reserve as required by regulatory authorities to provide
for mortality losses incurred. The reserve is increased quarterly for mortality
gains and its proportionate share of any increases in value. The reserve is
charged quarterly for mortality losses and its proportionate share of any
decreases in value. Transfers to or from MassMutual are then made quarterly to
adjust the Segments. Net transfers from MassMutual to the Segments totaled
$2,951 for the six months ended June 30, 1995 and net transfers from the
Segments to MassMutual totaled $2,784 for the six months ended June 30, 1994.
The reserve is subject to a maximum of 3% of the Segment's annuity reserves. Any
mortality losses in excess of this reserve will be assumed by MassMutual. The
reserve is not available to owners of Contracts except to the extent necessary
to cover mortality losses under the Contracts.
E. ANNUITY RESERVES
Annuity reserves are developed by using accepted actuarial methods and are
computed using the 1971 Individual Annuity Mortality Table, as modified.
4. CHARGES FOR MORTALITY AND EXPENSE RISKS
A. VARIABLE ANNUITY FUND 4 CONTRACTS
Currently, daily charges for mortality and expense risks assumed by MassMutual
are made which are equivalent on an annual basis to 0.730% of the value of the
Variable Annuity Fund 4 Contracts. Effective on January 1 of any year after the
first Contract year, the daily charge made for the assumption of mortality and
expense risks will be as determined by MassMutual, but in no event will such
charge be at an annual rate of more than 1.2045% of the value of the Variable
Annuity Fund 4 Contracts.
B. FLEX-ANNUITY IV (QUALIFIED) CONTRACTS
Daily charges for mortality and expense risks assumed by MassMutual are made
which are equivalent on an annual basis to 1.25% of the value of the
Flex-Annuity IV Contracts.
5. CHARGES/DEDUCTIONS FOR ADMINISTRATIVE CHARGES, CONTINGENT DEFERRED SALES
CHARGES AND PREMIUM TAXES
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1995 DIVISION DIVISION DIVISION DIVISION
- ------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Gross contract payments $ 1,537,341 $ 374,453 $ 255,316 $ 4,989,546
Less deductions for administrative and sales expenses and
premium taxes under Variable Annuity Fund 4 Contracts 3,453 3,427 1,551 7,380
Less deduction for premium taxes under Flex-Annuity IV
Contracts 1,294 286 204 4,240
------------ ------------ ------------ --------------
Net contract payments $ 1,532,594 $ 370,740 $ 253,561 $ 4,977,926
============ ============ ============ ==============
Administrative charges and contingent deferred sales charges
under Flex-Annuity IV Contracts $ 137,943 $ 19,629 $ 20,624 $ 398,656
============ ============ ============ ==============
</TABLE>
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1995 DIVISION DIVISION DIVISION DIVISION
- ------------- ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Gross contract payments $ 1,895,654 $ 518,026 $ 250,482 $ 5,681,743
Less deductions for administrative and sales expenses and
premium taxes under Variable Annuity Fund 4 Contracts 181 4,977 1,004 1,360
Less deduction for premium taxes under Flex-Annuity IV
Contracts 1,602 388 202 4,795
------------ ------------ ------------ --------------
Net contract payments $ 1,893,871 $ 512,661 $ 249,276 $ 5,675,588
============ ============ ============ ==============
Administrative charges and contingent deferred sales charges
under Flex-Annuity IV Contracts $ 162,698 $ 27,553 $ 25,140 $ 432,187
============ ============ ============ ==============
</TABLE>
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
6. PURCHASES AND SALES OF INVESTMENTS
<TABLE>
<CAPTION>
COST OF PROCEEDS
SHARES OF PURCHASES FROM SALES
- --------- ------------ -----------
<S> <C> <C>
MML Equity Fund $ 4,659,399 $ 6,456,409
MML Money Market Fund 1,883,499 3,478,592
MML Managed Bond Fund 1,248,104 1,920,289
MML Blend Fund 10,923,437 20,036,212
</TABLE>
7. NET INCREASE (DECREASE) IN ACCUMULATION UNITS
VARIABLE ANNUITY FUND 4 CONTRACTS
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1995 DIVISION DIVISION DIVISION DIVISION
- ------------- --------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Units purchased 6,679 17,220 5,180 24,681
Units withdrawn (63,926) (242,185) (113,058) (190,991)
Units transferred between divisions (15,999) (1,327) 30,102 132
--------- --------- -------- ---------
Net decrease (73,246) (226,292) (77,776) (166,178)
Units, at beginning of the year 1,636,947 1,641,887 812,837 4,294,517
--------- --------- -------- ---------
Units, at end of the period 1,563,701 1,415,595 735,061 4,128,339
========= ========= ======== =========
</TABLE>
FLEX-ANNUITY IV CONTRACTS
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1994 DIVISION DIVISION DIVISION DIVISION
- ------------- --------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Units purchased 270,822 168,542 79,516 1,515,135
Units withdrawn (1,173,461) (782,951) (447,987) (6,855,509)
Units transferred between divisions 40,877 (149,002) 85,237 (50,674)
Units transferred to annuity reserves -- -- -- (7,303)
---------- --------- --------- ----------
Net decrease (861,762) (763,411) (283,234) (5,398,351)
Units, at beginning of the year 16,469,073 6,974,443 4,945,453 70,616,166
---------- --------- --------- ----------
Units, at end of the period 15,607,311 6,211,032 4,662,219 65,217,815
========== ========= ========= ==========
</TABLE>
VARIABLE ANNUITY FUND 4 CONTRACTS
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1994 DIVISION DIVISION DIVISION DIVISION
- ------------- --------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Units purchased 327 24,990 3,328 4,767
Units withdrawn (123,491) (152,564) (73,640) (465,800)
Units transferred between divisions (4,601) 30,990 (16,610) 1,938
--------- --------- ------- ---------
Net decrease (127,765) (96,584) (86,922) (459,095)
Units, at beginning of the year 1,813,887 1,947,507 960,169 5,059,352
--------- --------- ------- ---------
Units, at end of the period 1,686,122 1,850,923 873,247 4,600,257
========= ========= ======= =========
</TABLE>
FLEX-ANNUITY IV CONTRACTS
<TABLE>
<CAPTION>
MML MML
MML MONEY MANAGED MML
FOR THE SIX MONTHS ENDED EQUITY MARKET BOND BLEND
JUNE 30, 1995 DIVISION DIVISION DIVISION DIVISION
- ------------- --------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Units purchased 378,520 239,791 83,526 1,892,370
Units withdrawn (968,858) (1,040,571) (365,924) (3,813,548)
Units transferred between divisions 67,793 249,882 (108,415) (174,150)
Units transferred to annuity reserves -- (2,394) (6,553) (1,105)
---------- ---------- --------- ----------
Net decrease (522,545) (553,292) (397,366) (2,096,433)
Units, at beginning of the year 17,562,315 8,006,953 5,750,922 76,447,631
---------- ---------- --------- ----------
Units, at end of the period 17,039,770 7,453,661 5,353,556 74,351,198
========== ========== ========= ==========
</TABLE>
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
8. CONSOLIDATED MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 1
As discussed in Note 1, the financial statements only represent activity of the
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified) segments of the
Massachusetts Mutual Variable Annuity Separate Account 1. The combined net
assets as of June 30, 1995 for Massachusetts Mutual Variable Annuity Separate
Account 1, which includes the segments pertaining to the Variable Annuity Fund
4, Flex-Annuity IV (Qualified) and Flex Extra (Qualified), are as follows:
<TABLE>
<CAPTION>
MML MML *OPPENHEIMER *OPPENHEIMER *OPPENHEIMER
MML MONEY MANAGED MML CAPITAL GLOBAL STRATEGIC
EQUITY MARKET BOND BLEND APPRECIATION SECURITIES BOND
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
------------- ------------ ------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Assets $ 755,979,627 $ 72,779,010 $ 101,999,236 $1,335,555,745 $ 32,260,365 $ 39,035,053 $ 9,832,893
Total Liabilities 3,092,377 262,939 384,791 4,738,027 136,462 212,703 31,517
------------- ------------ ------------- -------------- ------------ ------------ ------------
Net Assets $ 752,887,250 $ 72,516,071 $ 101,614,445 $1,330,817,718 $ 32,123,903 $ 38,822,350 $ 9,801,376
============= ============ ============= ============== ============ ============ ============
Net Assets Consist of:
Accumulation Units - Value $ 752,497,422 $ 72,408,708 $ 101,468,161 $1,330,021,649 $ 32,123,903 $ 38,822,350 $ 9,801,376
Annuity Reserves 389,828 107,363 146,284 796,069 -- -- --
------------- ------------ ------------- -------------- ------------ ------------ ------------
Net Assets $ 752,887,250 $ 72,516,071 $ 101,614,445 $1,330,817,718 $ 32,123,903 $ 38,822,350 $ 9,801,376
============= ============ ============= ============== ============ ============ ============
</TABLE>
*Offered on the Flex Extra Contracts.
9. DISTRIBUTION AGREEMENT
MML Investors Services, Inc. (``MMLISI''), a wholly-owned subsidiary of
MassMutual, acts as the principal underwriter of the Contracts. MMLISI is
registered as a broker-dealer under the Securities Exchange Act of 1934 and is a
member of the National Association of Securities Dealers, Inc. The Contracts are
sold by registered representatives of MMLISI who are also insurance agents of
MassMutual under state insurance law.
10. RECLASSIFICATION
Certain prior year amounts have been reclassified to conform with the current
year presentation.
9
<PAGE>
MML Series Investment Fund
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Our Message To You..................................................................... 2 - 3
Statement of Assets and Liabilities as of June 30, 1995................................ 4
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Statement of Operations for the six months ended June 30, 1995......................... 5
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Statement of Changes in Net Assets for the six months ended June 30, 1995 and 1994..... 6
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Financial Highlights
MML Equity Fund.................................................................. 7
MML Money Market Fund............................................................ 7
MML Managed Bond Fund............................................................ 8
MML Blend Fund................................................................... 8
Schedule of Investments as of June 30, 1995
MML Equity Fund.................................................................. 9 - 11
MML Money Market Fund............................................................ 12
MML Managed Bond Fund............................................................ 13 - 15
MML Blend Fund................................................................... 16 - 21
Notes to Financial Statements.......................................................... 22 - 25
</TABLE>
1
<PAGE>
MML Series Investment Fund
OUR MESSAGE TO YOU
ECONOMIC AND INVESTMENT ENVIRONMENT
Economic growth slowed significantly during the first half of 1995. The primary
reason for the slowdown was a strong reduction in household demand (consumer
consumption and housing expenditures). Real Gross Domestic Product (GDP), which
had climbed at a rate exceeding 4% during 1994, grew at an annual rate of 2.7%
for the first quarter of 1995. The second quarter was even weaker than the
first, largely due to a reduction in new orders. The nearly flat second quarter,
in combination with the first quarter growth, should result in a modest GDP
growth rate of approximately 1.5% for the first half of this year. Despite the
slowdown, corporate profits and personal incomes have shown strong growth this
year. Additionally, inflationary pressures have remained modest.
The financial markets responded very strongly to the economic events of the
first half of the year. During late February, Federal Reserve Board ("Fed")
Chairman Greenspan confirmed that a substantial slowdown was underway. In
response to expectations of the Fed easing and weak economic statistics,
interest rates fell sharply during the first half of 1995. As interest rates
fell, bond prices increased strongly providing bondholders with a total return
of 11.8% (as evidenced by the Lehman Government/Corporate Bond Index). The
stock market also prospered. Benefitted by lower interest rates and continuing
strong corporate profits, the stock market provided investors with a total
return of 20.2% over the first half, as evidenced by the Standard & Poor's 500
Index.
In the fixed income markets, the treasury sector provided especially strong
returns. Investment grade corporate bonds also proved to be strong performers
in the first half. Mortgage backed securities and particularly the adjustable
rate securities lagged throughout the first half. In the stock market, the
large capitalization stocks generally outperformed the small capitalization;
however, the big winners in the first half were the technology stocks.
In the second half of 1995, we expect the economy to improve, but we look for
continued moderate growth. Stocks and bonds may be volatile in the second half
given their strong performance in the first half of 1995. In this environment,
we will continue to seek attractively valued investments to provide solid,
long-term performance for the portfolios. As always, we believe that a
disciplined, patient approach to investing will help you, our investors, reach
your financial goals.
MML EQUITY
What changes, if any, occurred to the portfolio in light of the economic
environment during this period?
Early in the year we were finding better values among more defensive issues,
such as pharmaceutical, agricultural, and food and beverage companies. This
seemed logical because the economic upswing had lasted more than four years, and
we expected that earnings of cyclical companies would begin to lose momentum.
However, by the second quarter, the market was discounting an economic slowdown,
interest rates had fallen sharply, and cyclical stocks had underperformed enough
to become the better purchases for the rest of the first half.
What were the most important buys/sells during the period?
There were four new purchases in the first half of 1995. In the retail group, we
bought Sears, Roebuck, which had completed a major restructuring and returned to
its general merchandise focus. We also purchased Albertson's, the fourth largest
food chain in the U. S., with geographical concentration in the southern and
western states. To participate in the global telecommunications network and
services business, we established a position in AT&T. The last new purchase was
American Brands, which had exited the domestic tobacco business and become more
of a branded consumer products company. We eliminated three stocks in the
period: Lockheed, Royal Dutch Petroleum and Willamette Industries.
What can we expect for the rest of 1995? What challenges do you see for the
future?
With spectacular stock market returns in the first half of the year, the next
six months might present a more difficult environment. Earnings, however, are
likely to remain robust in the next few quarters, tempering any periods of
weakness. We expect that the market performance will broaden to include more mid
cap and small cap issues, and become more volatile as the year progresses.
Longer term, the low dividend yield and high price to book value for the S&P 500
temper our enthusiasm for the market. Any new stocks purchased for the fund will
have to represent bargains in order for us to make a significant commitment.
Such opportunities may be limited until the market suffers a broader setback.
2
<PAGE>
MML MONEY MARKET
What were the driving forces that the economy reacted to during the period?
A major driving force during the first half of 1995 was the seven interest rate
increases orchestrated by the Fed between February 1994 and February 1995. This
tightening cycle was instituted by the Fed in order to keep inflation under
control as the economy began a period of strong growth. Both employment and
capacity utilization grew tremendously during 1994, which resulted in
inflationary concerns for the economy. Having slowed the economy sufficiently
during 1995, the Fed actually cut rates by 25 basis points in early July, citing
the lackluster economy as the primary reason behind the rate cut. In this
economic environment, we positioned the money market fund in high-quality
commercial paper (96%) and government agency issues (4%) having an average
maturity of 40 days at June 30, 1995.
Why is diversification such an important principle of your strategy?
Our investments are well diversified to limit our exposure to any particular
issuer. Diversification across industries and issuers within the portfolio helps
to prevent large losses caused by relatively isolated economic events.
MML MANAGED BOND
What caused the massive rally in the fixed-income markets and the concurrent
flattening in the yield curve?
The massive fixed-income rally during the first half of 1995 was the result of a
slowdown in the economy. With inflation under control, market participants
rallied the market anticipating the economic slowdown and an easing of Fed
policy. A concurrent flattening of the yield curve took place as inflation,
normally the scourge of fixed-income assets (especially long-term securities),
remained mild. Investor perceptions that the economic slowdown could lead to
recession also contributed to the flattening, as historically, the curve has
flattened as the economy approaches a recessionary environment.
What can we expect for the rest of 1995? What challenges do you see for the
future?
The remainder of 1995 should continue to be a period of volatility as market
participants react to the monetary policy actions of the Fed. Interest rate
declines seen thus far could be enough to stimulate the economy without
additional Fed easing. We have seen some of this reaction already in the housing
market. We expect to position the fund to be somewhat more defensive during the
second half of the year in order to preserve the strong returns we have already
gained from what has been an excellent market.
MML BLEND
What was the asset allocation of the Blend Fund as of June 30, 1995? Were there
any changes to the allocation strategy of the portfolio in light of the economic
environment during this period?
The Blend Fund combines the profiles of the MML Equity, Bond, and Money Market
Funds into a single portfolio. The specific allocation of stocks, bonds, and
money market issues is based upon the interrelation of current economic and
financial conditions and the values available in the stock and bond markets. As
these relationships change, the exposure to each capital market is gradually
adjusted within the designated ranges. At June 30, 1995, the Blend Fund had 55%
of the portfolio in equities, 13% in long-term bonds, and 32% in short-term
issues. There has been no significant change in these allocations since our last
report.
/s/ Stuart H. Reese
Stuart H. Reese
President
MML Series Investment Fund
July 31, 1995
3
<PAGE>
MML Series Investment Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
ASSETS
Investments at value (See Schedule of Investments)
(Notes 2A, 2B and 5)
Equities (Identified cost: $702,371,338;
$632,744,428 respectively)..................................... $ 948,957,474 $ -- $ -- $ 916,605,221
Bonds and notes (Identified cost: $126,819,596;
$217,658,170 respectively)..................................... -- -- 130,001,245 225,049,598
Short-term investments (Identified cost: $111,062,345;
$101,111,713; $9,448,705; $537,852,371 respectively)........... 111,062,345 101,111,713 9,448,705 537,697,097
-------------- ------------ ------------ --------------
Total investments.............................................. 1,060,019,819 101,111,713 139,449,950 1,679,351,916
Cash............................................................ 254,367 5,270 5,415 4,364,345
Interest and dividends receivable............................... 2,206,505 1,931 2,227,640 6,188,709
Receivable for investments sold................................. -- -- 1,075 1,057,293
Receivable for settlement of investments
purchased on a forward commitment basis (Note 2D).............. -- -- 260,757 3,061,714
Prepaid trustees' fees.......................................... 858 546 546 546
-------------- ------------ ------------ --------------
Total assets................................................... 1,062,481,549 101,119,460 141,945,383 1,694,024,523
-------------- ------------ ------------ --------------
LIABILITIES
Payable for investments purchased............................... 1,568,838 -- -- 5,728,889
Dividends payable (Note 2C)..................................... -- 449,598 -- --
Investment management fee payable (Note 4)...................... 993,643 119,012 165,644 1,544,030
Accrued liabilities............................................. 53,638 16,390 15,127 33,644
-------------- ------------ ------------ --------------
Total liabilities.............................................. 2,616,119 585,000 180,771 7,306,563
-------------- ------------ ------------ --------------
NET ASSETS...................................................... $1,059,865,430 $100,534,460 $141,764,612 $1,686,717,960
============== ============ ============ ==============
Net assets consist of:
Series shares, (par value $.01 per share; an unlimited number
authorized) (Note 6)............................................ $ 445,036 $ 1,005,345 $ 115,736 $ 857,363
Additional paid-in capital....................................... 785,196,294 99,529,115 138,595,460 1,366,511,200
Undistributed net investment income (Note 2C).................... 13,813,063 8,913 2,284,781 17,602,007
Undistributed net realized gain (loss) on investments and
forward commitments (Notes 2D and 3)............................ 13,824,901 (8,913) (2,414,572) 7,703,768
Net unrealized appreciation on:
Investments (Note 2A)........................................... 246,586,136 -- 3,181,649 291,096,947
Forward commitments (Note 2D)................................... -- -- 1,558 2,946,675
-------------- ------------ ------------ --------------
NET ASSETS....................................................... $1,059,865,430 $100,534,460 $141,764,612 $1,686,717,960
============== ============ ============ ==============
Outstanding series shares........................................ 44,503,554 $100,534,460 11,573,563 85,736,321
============== ============ ============ ==============
Net asset value per share........................................ $ 23.82 $ 1.00 $ 12.25 $ 19.67
============== ============ ============ ==============
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
MML Series Investment Fund
STATEMENT OF OPERATIONS
For The Six Months Ended June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Investment income (Note 2B)
Dividends........................................................ $ 12,942,852 $ -- $ -- $ 12,909,367
Interest......................................................... 2,858,606 2,870,986 4,826,053 23,881,001
-------------- -------------- ------------- --------------
Total income.................................................. 15,801,458 2,870,986 4,826,053 36,790,368
-------------- -------------- ------------- --------------
Expenses
Investment management fee (Note 4)............................... 1,882,599 235,080 318,697 2,980,434
Trustees' fees................................................... 7,436 5,941 5,975 5,941
Audit fees....................................................... 13,121 9,076 11,603 14,204
Tax expense...................................................... 6,262 -- -- 6,262
Registration fee................................................. 33,650 3,017 2,777 25,034
Other............................................................ 1,127 667 667 630
-------------- -------------- ------------- --------------
Total expenses................................................ 1,944,195 253,781 339,719 3,032,505
-------------- -------------- ------------- --------------
Net investment income (Note 2C).................................. 13,857,263 2,617,205 4,486,334 33,757,863
-------------- -------------- ------------- --------------
Net realized and unrealized gain (loss) on investments and
forward commitments (Notes 2A, 2B and 2D)
Net realized gain (loss) on:
Investments (Notes 2B and 2C)................................... 13,881,504 (20) (697,474) 6,458,292
Forward commitments (Note 2D)................................... -- -- 453,016 2,277,785
-------------- -------------- ------------- --------------
Net realized gain (loss)...................................... 13,881,504 (20) (244,458) 8,736,077
-------------- -------------- ------------- --------------
Change in net unrealized appreciation/depreciation on:
Investments (Note 2A)........................................... 113,792,847 -- 10,294,054 139,385,654
Forward commitments (Note 2D)................................... -- -- 164,192 4,138,131
-------------- -------------- ------------- --------------
Total change in net unrealized appreciation/depreciation...... 113,792,847 -- 10,458,246 143,523,785
-------------- -------------- ------------- --------------
Net gain (loss).................................................. 127,674,351 (20) 10,213,788 152,259,862
-------------- -------------- ------------- --------------
Net increase in net assets resulting from operations............. $ 141,531,614 $ 2,617,185 $ 14,700,122 $ 186,017,725
============== ============== ============= ==============
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
MML Series Investment Fund
STATEMENT OF CHANGES IN NET ASSETS
For The Six Months Ended June 30, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
1995
-------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets
Operations:
Net investment income............................................ $ 13,857,263 $ 2,617,205 $ 4,486,334 $ 33,757,863
Net realized gain (loss)
on investments and
forward commitments............................................. 13,881,504 (20) (244,458) 8,736,077
Change in net unrealized
appreciation/depreciation on
investments and forward
commitments..................................................... 113,792,847 -- 10,458,246 143,523,785
-------------- ------------ ------------ --------------
Net increase (decrease) in
net assets resulting from
operations...................................................... 141,531,614 2,617,185 14,700,122 186,017,725
Dividends to shareholders from
net investment income (Note 2C)................................ (35,000) (2,617,185) (2,198,282) (16,157,864)
Net increase in capital share
transactions (Note 6).......................................... 97,585,798 8,748,427 8,053,120 72,596,962
-------------- ------------ ------------ --------------
Total increase (decrease)...................................... 239,082,412 8,748,427 20,554,960 242,456,823
NET ASSETS, at beginning of the year............................. 820,783,018 91,786,033 121,209,652 1,444,261,137
NET ASSETS, at end of the period................................. $1,059,865,430 $100,534,460 $141,764,612 $1,686,717,960
============== ============ ============ ==============
Undistributed net investment income included in net assets
at end of the period............................................ $ 13,813,063 $ 8,913 $ 2,284,781 $ 17,602,007
============== ============ ============ ==============
Rate per share of dividends to shareholders from net
investment income............................................... $ .001 $ .028 $ .197 $ .192
<CAPTION>
1994
-------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets
Operations:
Net investment income............................................ $ 10,887,645 $ 1,253,255 $ 4,226,116 $ 25,770,255
Net realized gain (loss)
on investments and
forward commitments............................................. 3,404,918 (3,648) (916,521) 7,147,498
Change in net unrealized
appreciation/depreciation on
investments and forward
commitments..................................................... (15,082,522) -- (9,503,629) (44,491,207)
-------------- ------------ ------------ --------------
Net increase (decrease) in
net assets resulting from
operations...................................................... (789,959) 1,249,607 (6,194,034) (11,573,454)
Dividends to shareholders from
net investment income (Note 2C)................................ (25,000) (1,249,607) (2,107,029) (12,431,913)
Net increase in capital share
transactions (Note 6).......................................... 111,621,101 7,977,018 4,267,178 152,013,261
-------------- ------------ ------------ --------------
Total increase (decrease)...................................... 110,806,142 7,977,018 (4,033,885) 128,007,894
NET ASSETS, at beginning of the year............................. 663,093,058 73,659,008 129,109,198 1,296,543,156
-------------- ------------ ------------ --------------
NET ASSETS, at end of the period................................. $ 773,899,200 $ 81,636,026 $125,075,313 $1,424,551,050
============== ============ ============ ==============
Undistributed net investment income included in net assets
at end of the period............................................ $ 10,845,740 $ 7,177 $ 2,112,529 $ 13,340,848
============== ============ ============ ==============
Rate per share of dividends to shareholders from net
investment income............................................... $ .001 $ .015 $ .202 $ .163
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
MML Series Investment Fund
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected per share data for each series share outstanding throughout each
six-month period ended June 30:
<TABLE>
<CAPTION>
MML EQUITY FUND
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.......................... $ 20.520 $ 20.510 $ 19.862 $ 18.735 $ 15.659
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... .311 .287 .274 .286 .295
Net realized and unrealized
gain (loss) on investments................. 2.985 (.293) .760 .448 1.900
-------- -------- -------- -------- --------
Total from investment operations............ 3.296 (.006) 1.034 .734 2.195
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.......................... (.001) -- (.001) (.001) (.002)
Distribution from net
realized gains............................. -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions......................... (.001) -- (.001) (.001) (.002)
-------- -------- -------- -------- --------
Net asset value:
End of period.............................. $ 23.815 $ 20.504 $ 20.895 $ 19.468 $ 17.852
======== ======== ======== ======== ========
<CAPTION>
1990 1989 1988 1987 1986
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.......................... $ 16.764 $ 14.929 $ 13.828 $ 15.591 $ 13.832
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... .315 .366 .295 .241 .241
Net realized and unrealized
gain (loss) on investments................. .115 1.366 1.691 2.625 2.176
-------- -------- -------- -------- --------
Total from investment operations............ .430 1.732 1.986 2.866 2.417
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.......................... (.002) (.002) -- (.487) (.412)
Distribution from net
realized gains............................. -- -- -- (.759) (.498)
-------- -------- -------- -------- --------
Total distributions......................... (.002) (.002) -- (1.246) (.910)
-------- -------- -------- -------- --------
Net asset value:
End of period.............................. $ 17.192 $ 16.659 $ 15.814 $ 17.211 $ 15.339
======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
MML MONEY MARKET FUND
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... .028 .015 .048 .019 .032
-------- -------- -------- -------- --------
Total from investment operations............ .028 .015 .048 .019 .032
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.......................... (.028) (.015) (.048) (.019) (.032)
-------- -------- -------- -------- --------
Total distributions......................... (.028) (.015) (.048) (.019) (.032)
-------- -------- -------- -------- --------
Net asset value:
End of period.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
<CAPTION>
1990 1989 1988 1987 1986
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.......................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... .039 .045 .032 .029 .035
-------- -------- -------- -------- --------
Total from investment operations............ .039 .045 .032 .029 .035
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.......................... (.039) (.045) (.032) (.029) (.035)
-------- -------- -------- -------- --------
Total distributions......................... (.039) (.045) (.032) (.029) (.035)
-------- -------- -------- -------- --------
Net asset value:
End of period.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
MML Series Investment Fund
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
MML MANAGED BOND FUND
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.................. $ 11.141 $ 12.405 $ 12.041 $ 12.219 $ 11.318
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income............... .395 .400 .404 .438 .458
Net realized and unrealized
gain (loss) on investments
and forward commitments............ .910 (.979) .579 (.119) .092
-------- -------- -------- -------- --------
Total from investment operations.... 1.305 (.579) .983 .319 .550
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.................. (.197) (.202) (.207) (.219) (.221)
Distribution from net
realized gains..................... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (.197) (.202) (.207) (.219) (.221)
-------- -------- -------- -------- --------
Net asset value:
End of period...................... $ 12.249 $ 11.624 $ 12.817 $ 12.319 $ 11.647
======== ======== ======== ======== ========
<CAPTION>
1990 1989 1988 1987 1986
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.................. $ 11.354 $ 10.919 $ 11.052 $ 12.541 $ 11.978
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income............... .477 .455 .456 .484 .543
Net realized and unrealized
gain (loss) on investments
and forward commitments............ (.171) .431 .011 (.469) .406
-------- -------- -------- -------- --------
Total from investment operations.... .306 .886 .467 .015 .949
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.................. (.242) (.226) (.225) (.492) (.561)
Distribution from net
realized gains -- -- -- (.482) --
-------- -------- -------- -------- --------
Total distributions................. (.242) (.226) (.225) (.974) (.561)
-------- -------- -------- -------- --------
Net asset value:
End of period...................... $ 11.418 $ 11.579 $ 11.294 $ 11.582 $ 12.366
======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
MML BLEND FUND
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.................. $ 17.672 $ 18.305 $ 17.846 $ 17.307 $ 14.839
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income............... .397 .332 .332 .355 .370
Net realized and unrealized
gain (loss) on investments
and forward commitments............ 1.796 (.486) .687 .237 1.364
-------- -------- -------- -------- --------
Total from investment operations.... 2.193 (.154) 1.019 .592 1.734
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.................. (.192) (.163) (.168) (.177) (.182)
Distribution from net
realized gains..................... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (.192) (.163) (.168) (.177) (.182)
-------- -------- -------- -------- --------
Net asset value:
End of period...................... $ 19.673 $ 17.988 $ 18.697 $ 17.722 $ 16.391
======== ======== ======== ======== ========
<CAPTION>
1990 1989 1988 1987 1986
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year.................. $ 15.428 $ 13.876 $ 13.095 $ 13.774 $ 12.244
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income............... .398 .412 .354 .284 .263
Net realized and unrealized
gain (loss) on investments
and forward commitments............ .021 1.058 1.068 1.555 1.571
-------- -------- -------- -------- --------
Total from investment operations.... .419 1.470 1.422 1.839 1.834
-------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.................. (.192) (.181) (.175) (.272) (.285)
Distribution from net
realized gains..................... -- -- -- (.247) (.103)
-------- -------- -------- -------- --------
Total distributions................. (.192) (.181) (.175) (.519) (.388)
-------- -------- -------- -------- --------
Net asset value:
End of period...................... $ 15.655 $ 15.165 $ 14.342 $ 15.094 $ 13.690
======== ======== ======== ======== ========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
MML Equity Fund
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
<S> <C> <C>
EQUITIES - 89.53%
Aerospace & Defense - 1.92%
The Boeing Company ................................... 202,500 $ 12,681,562
TRW, Inc. ............................................ 96,000 7,668,000
----------- -----------
298,500 20,349,562
----------- -----------
Agribusiness - 2.00%
Archer-Daniels-Midland Company........................ 549,977 10,243,322
Pioneer Hi-Bred International......................... 260,000 10,920,000
----------- -----------
809,977 21,163,322
----------- -----------
Apparel, Textiles, Shoes - 1.05%
VF Corporation........................................ 208,000 11,180,000
----------- -----------
Automotive & Parts - 2.67%
Ford Motor Company.................................... 430,000 12,792,500
Genuine Parts Company................................. 410,000 15,528,750
----------- -----------
840,000 28,321,250
----------- -----------
Banking, Savings & Loans - 6.27%
Bank of New York Company, Incorporated................ 453,000 18,289,875
Comerica, Incorporated................................ 435,000 13,974,375
CoreStates Financial Corporation...................... 426,000 14,856,750
Norwest Corporation................................... 328,000 9,430,000
Wachovia Corp. ....................................... 278,200 9,945,650
----------- -----------
1,920,200 66,496,650
----------- -----------
Beverages - 1.99%
Brown-Forman Corporation (Class B).................... 333,000 11,113,875
Pepsico, Incorporated................................. 218,000 9,946,250
----------- -----------
551,000 21,060,125
----------- -----------
Chemicals - 4.31%
E.I. du Pont de Nemours and Company................... 152,500 10,484,375
Eastman Chemical Company.............................. 250,000 14,875,000
The Lubrizol Corporation.............................. 313,500 11,090,063
Nalco Chemical Company................................ 254,000 9,239,250
----------- -----------
970,000 45,688,688
----------- -----------
Communications - 2.01%
AT&T Corporation...................................... 400,000 21,250,000
----------- -----------
Computers & Office Equipment - 6.45%
Hewlett-Packard Company............................... 396,000 29,502,000
International Business Machines Corporation........... 110,000 10,560,000
Pitney Bowes, Inc. ................................... 390,000 14,966,250
Xerox Corporation..................................... 114,000 13,366,500
----------- -----------
1,010,000 68,394,750
----------- -----------
Electric Utilities - 1.97%
NIPSCO Industries, Inc. .............................. 180,000 6,120,000
Niagara Mohawk Power Corporation...................... 463,500 6,836,625
SCANA Corporation..................................... 356,000 7,965,500
----------- -----------
999,500 20,922,125
----------- -----------
Electrical Equipment & Electronics - 8.19%
AMP, Incorporated..................................... 591,000 24,969,750
General Electric Company.............................. 475,000 26,778,125
General Signal Corporation............................ 279,500 11,110,125
Honeywell Inc. ....................................... 256,500 11,061,562
Hubbell, Incorporated (Class B)....................... 228,072 12,886,068
----------- -----------
1,830,072 86,805,630
----------- -----------
Energy - 8.12%
Amoco Corporation..................................... 305,000 20,320,625
Atlantic Richfield Company............................ 137,000 15,035,750
Chevron Corporation................................... 422,000 19,675,750
Kerr-McGee Corporation................................ 226,400 12,140,700
Mobil Corporation..................................... 167,000 16,032,000
USX Corporation - Marathon Group...................... 145,000 2,863,750
----------- -----------
1,402,400 86,068,575
----------- -----------
Financial Services - 1.36%
American Express Company.............................. 410,000 14,401,250
----------- -----------
Foods - 1.62%
CPC International, Inc. .............................. 277,500 17,135,625
----------- -----------
Forest Products & Paper - 3.20%
Westvaco Corporation.................................. 263,537 11,661,512
Weyerhaeuser Company.................................. 472,000 22,243,000
----------- -----------
735,537 33,904,512
----------- -----------
Gas Distribution - .36%
Consolidated Natural Gas Company...................... 102,300 3,861,825
----------- -----------
Grocery Retailers - .50%
Albertson's, Inc. .................................... 178,000 5,295,500
----------- -----------
Hardware & Tools - 1.09%
The Stanley Works..................................... 305,000 11,551,875
----------- -----------
Healthcare - 8.11%
Becton, Dickinson and Company......................... 260,000 15,145,000
Bristol-Myers Squibb Company.......................... 455,000 30,996,875
Pfizer, Incorporated.................................. 278,000 25,680,250
Schering-Plough Corp. ................................ 319,800 14,111,175
----------- -----------
1,312,800 85,933,300
----------- -----------
Household Products - .94%
The Clorox Company.................................... 152,500 9,950,625
----------- -----------
Industrial Distribution - 1.16%
W. W. Grainger, Inc. .................................. 210,000 12,337,500
----------- -----------
Industrial Transportation - 2.01%
Norfolk Southern Corporation.......................... 228,000 15,361,500
Roadway Services, Inc. ............................... 125,000 5,906,250
----------- -----------
353,000 21,267,750
----------- -----------
Insurance - 3.10%
Jefferson-Pilot Corporation........................... 142,600 7,807,350
SAFECO Corporation.................................... 319,000 18,322,722
Unitrin, Inc. ........................................ 142,000 6,745,000
----------- -----------
603,600 32,875,072
----------- -----------
Machinery & Components - 2.00%
Dover Corporation..................................... 150,000 10,912,500
Parker-Hannifin Corporation........................... 284,250 10,304,063
----------- -----------
434,250 21,216,563
----------- -----------
</TABLE>
9
<PAGE>
MML Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
<S> <C> <C>
EQUITIES (Continued)
Metals & Mining - .71%
Reynolds Metals Company......................... 145,500 $ 7,529,625
------------ ------------
Miscellaneous - Producer - 2.68%
Harsco Corporation.............................. 169,500 8,941,125
Minnesota Mining &
Manufacturing Company.......................... 340,000 19,465,000
------------ ------------
509,500 28,406,125
------------ ------------
Photography - 1.18%
Eastman Kodak Company........................... 206,500 12,519,062
------------ ------------
Publishing & Printing - 4.14%
R. R. Donnelley & Sons Company.................. 366,500 13,194,000
The Dun & Bradstreet Corporation................ 280,000 14,700,000
McGraw Hill, Inc. .............................. 210,000 15,933,750
------------ ------------
856,600 43,827,750
------------ ------------
Retail - 3.13%
Kmart Corporation............................... 57,600 842,400
The May Department Stores Company............... 376,500 15,671,813
J.C. Penney Company, Inc. ...................... 113,000 5,424,000
Sears Roebuck & Co. ............................ 188,000 11,256,500
------------ ------------
735,100 33,194,713
------------ ------------
Telephone Utilities - 2.44%
Frontier Corporation............................ 461,000 11,064,000
Ameritech Corporation........................... 182,000 8,008,000
Southern New England
Telecommunications Corporation................. 193,500 6,820,875
------------ ------------
836,500 25,892,875
------------ ------------
Tire & Rubber - 1.51%
Goodyear Tire & Rubber Company.................. 387,500 15,984,375
------------ ------------
Tobacco - 1.34%
American Brands, Inc. .......................... 356,500 14,170,875
------------ ------------
Total Equities
(Cost $702,371,338)............................. 948,957,474
------------
</TABLE>
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
<S> <C> <C>
SHORT TERM INVESTMENTS* - 10.48%
Commercial Paper
Burlington Northern Railroad Company
6.159% 8/2/95................................ $ 6,325,000 $ 6,290,564
Burlington Resources Inc.
6.182% 7/20/95............................... 4,730,000 4,714,722
Champion International Corporation
6.072% 7/14/95............................... 4,220,000 4,210,811
ConAgra, Inc.
6.069% 7/17/95............................... 4,500,000 4,487,940
ConAgra, Inc.
6.070% 7/6/95................................ 5,765,000 5,760,156
Illinois Power Company
6.082% 7/11/95............................... 2,160,000 2,156,370
MAPCO Inc.
6.138% 8/3/95................................ 1,600,000 1,591,053
ORIX Credit Alliance Inc.
6.122% 7/12/95............................... 4,330,000 4,321,956
ORIX Credit Alliance Inc.
6.055% 7/10/95............................... 3,995,000 3,988,988
ORIX Credit Alliance Inc.
6.108% 7/5/95................................ 5,000,000 4,996,622
ORIX Credit Alliance Inc.
6.153% 7/31/95............................... 7,100,000 7,063,849
ORIX Credit Alliance Inc.
6.145% 7/27/95............................... 3,445,000 3,429,798
Pacific Telecom Inc.
6.093% 7/25/95............................... 5,855,000 5,831,385
Pacific Telecom Inc.
6.084% 7/18/95............................... 5,870,000 5,853,230
PS Colorado Credit Corporation
6.121% 7/19/95............................... 4,775,000 4,760,508
Sierra Pacific Power Co.
6.089% 7/21/95............................... 4,585,000 4,569,589
Sierra Pacific Power Co.
6.088% 7/28/95............................... 6,585,000 6,555,121
Super Value Stores Inc.
6.136% 7/7/95................................ 8,165,000 8,156,672
Textron Financial Corporation
6.056% 7/13/95............................... 5,190,000 5,179,585
Textron Financial Corporation
6.089% 7/24/95............................... 5,925,000 5,902,098
Textron Financial Corporation
6.126% 8/10/95............................... 2,300,000 2,284,462
Textron Financial Corporation
6.129% 7/26/95............................... 1,575,000 1,568,328
Textron Financial Corporation
6.164% 8/1/95................................ 2,165,000 2,153,572
Tyson Foods, Inc.
6.083% 8/4/95................................ 5,265,000 5,234,966
------------ ------------
Total Short Term Investments
(Cost $111,062,345) $111,425,000 111,062,345
============ ------------
</TABLE>
10
<PAGE>
MML Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Value
(Note 2A)
-----------
<S> <C> <C>
Total Investments -
(Cost $813,433,683) (a) 100.01% $1,060,019,819
Other Assets - .23 2,461,730
Liabilities - (.24) (2,616,119)
------- --------------
Net Assets - 100.00% $1,059,865,430
======= ==============
</TABLE>
(a) Federal Income Tax Information: At
June 30, 1995 the net unrealized
appreciation on investments based on cost
of $813,565,814 for federal income tax
purposes is as follows:
Aggregate gross unrealized appreciation for
all investments in which there is an excess
of market value over tax cost................. $252,541,063
Aggregate gross unrealized depreciation for
all investments in which there is an excess
of tax cost over market value................. (6,087,058)
------------
Net unrealized appreciation................... $248,454,005
============
*Rates represent annualized yield on date of purchase and are
unaudited.
See Notes to Financial Statements.
11
<PAGE>
MML Money Market Fund
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
------------ -------------
SHORT TERM INVESTMENTS* 100.57%
<S> <C> <C>
Commercial Paper
American Express Credit Corp.
6.069% 9/1/95.................................. $ 3,285,000 $ 3,251,338
Aristar, Inc.
6.246% 7/5/95.................................. 3,480,000 3,477,622
Atlantic Richfield Corp.
6.252% 9/27/95................................. 2,975,000 2,930,930
Carolina Power & Light Co.
5.984% 8/2/95.................................. 3,800,000 3,779,902
Caterpillar Financial Services Corporation
5.996% 8/11/95................................. 3,635,000 3,610,492
Central & South West Corporation
5.954% 8/3/95.................................. 2,600,000 2,585,938
Coca Cola Company
5.905% 8/10/95................................. 1,895,000 1,882,683
Dresser Industries Inc.
6.019% 8/8/95.................................. 1,875,000 1,863,165
E.I. du Pont de Nemours and Company
6.085% 7/6/95.................................. 2,355,000 2,353,038
Echlin Inc.
6.032% 7/28/95................................. 3,455,000 3,439,452
Eli Lilly & Company
5.957% 9/14/95................................. 2,315,000 2,286,689
Emerson Electric Company
5.961% 7/11/95................................. 2,895,000 2,890,255
Federal National Mortgage Association
5.659% 12/28/95................................ 3,875,000 3,768,437
Ford Motor Credit Company
5.969% 7/24/95................................. 685,000 685,000
GTE Finance Corporation
6.051% 7/21/95................................. 3,500,000 3,488,333
General Electric Company
6.039% 7/19/95................................. 2,385,000 2,377,905
General Electric Capital Corporation
5.981% 8/23/95................................. 1,185,000 1,174,672
Georgia Power Company
6.092% 7/17/95................................. 2,100,000 2,094,400
Georgia Power Company
5.961% 7/10/95................................. 1,150,000 1,148,295
H.J. Heinz Company
5.982% 8/1/95.................................. 3,825,000 3,805,435
Hercules Incorporated
5.983% 7/26/95................................. 3,630,000 3,615,001
Iowa Illinois Gas & Electric Company
5.978% 8/8/95.................................. 2,793,000 2,775,517
J.C. Penny Funding Corp.
5.984% 7/18/95................................. 2,880,000 2,871,935
Kimberly Clark Corp.
5.829% 8/31/95................................. 3,035,000 3,005,430
McCormick & Company Inc.
6.168% 7/7/95.................................. 2,945,000 2,942,021
Melville Corporation
6.298% 12/7/95................................. 3,450,000 3,357,661
Monsanto Company
6.168% 8/3/95.................................. 1,620,000 1,611,016
Monsanto Company
6.008% 7/13/95................................. 1,445,000 1,442,134
Motorola Inc.
5.903% 8/18/95................................. 1,650,000 1,637,130
Pepsico Inc.
5.969% 8/9/95.................................. 3,570,000 3,547,066
Philip Morris Companies, Inc.
6.113% 7/12/95................................. 2,780,000 2,774,886
Potomac Electric Power Company
6.104% 8/14/95................................. 2,500,000 2,481,667
Proctor & Gamble Company
5.987% 7/20/95................................. 2,630,000 2,621,783
Public Service Electric & Gas Co.
5.974% 8/30/95................................. 2,200,000 2,178,367
Shell Oil Company
6.025% 7/10/95................................. 2,100,000 2,096,876
South Carolina Electric & Gas Co.
5.993% 8/4/95.................................. 3,000,000 2,983,142
Southwestern Bell Telecommunications
5.933% 8/25/95................................. 3,000,000 2,973,188
Union Electric Company
5.996% 7/14/95................................. 3,310,000 3,302,912
------------ ------------
Total Short-Term Investments
(Cost $101,111,713) (a) $101,808,000 101,111,713
============ ------------
Total Investments -
(Cost $101,111,713) (a) 100.57% 101,111,713
Other Assets - .01 7,747
Liabilities - (.58) (585,000)
------- ------------
Net Assets - 100.00% $100,534,460
======= ============
</TABLE>
(a) Federal Income Tax Information: The aggregate cost for investments
for the MML Money Market Fund as of June 30, 1995 is the same for
financial reporting and federal income tax purposes.
June 30, 1995 seven day average yield for the portfolio: 5.54%
*Rates represent annualized yield on date of purchase and
are unaudited.
See Notes to Financial Statements.
12
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
------------ ------------
<S> <C> <C>
BONDS AND NOTES - 91.70%
Asset Backed Securities - 5.60%
Auto Receivables
Daimler-Benz Vehicle Trust 1994-A
5.950% 12/15/00.............................. $ 921,020 $ 918,368
Ford Credit 1994-B Grantor Trust
7.300% 10/15/99.............................. 1,209,371 1,226,749
GMAC 1992-E Grantor Trust
4.750% 8/15/97............................... 518,904 514,036
Honda Auto Receivables 1992-A Grantor Trust
4.900% 6/15/98............................... 332,734 330,445
Midlantic Auto Grantor Trust 1992-1
4.300% 9/15/97............................... 174,553 173,789
Nissan Auto Receivables 1994-A Grantor Trust
6.450% 9/15/99............................... 2,090,581 2,097,104
World Omni Leasing Asset-Backed, Inc.
5.800% 1/15/97............................... 182,639 182,524
World Omni 1994-A Automobile Lease
Securitization Trust
6.450% 9/25/00............................... 2,500,000 2,503,250
------------ ------------
Total Asset Backed Securities
(Cost $7,920,015) 7,929,802 7,946,265
------------ ------------
Corporate Debt - 54.50%
AMR Corporation
9.000% 8/1/12................................ 1,000,000 1,056,210
American Airlines, Inc.
9.780% 11/26/11.............................. 2,000,000 2,242,500
Analog Devices, Inc.
6.625% 3/1/00................................ 1,000,000 984,520
Ashland Oil, Inc.
9.850% 9/15/95............................... 1,000,000 1,008,750
Associates Corporation of North America
7.875% 9/30/01............................... 2,000,000 2,123,960
Atlantic Richfield Company
7.770% 2/13/02............................... 3,000,000 3,199,770
BP America Inc.
8.500% 4/15/01............................... 2,000,000 2,187,600
Bell Atlantic Financial Services Inc.
6.610% 2/4/00................................ 2,000,000 2,016,740
Comdisco, Inc.
6.200% 3/5/96................................ 2,000,000 1,998,680
Corning Glass Works
8.875% 3/15/16............................... 500,000 572,025
John Deere Capital Corporation
5.290% 8/21/95............................... 1,000,000 998,590
Dow Capital
7.125% 1/15/03............................... 4,000,000 4,036,680
ERAC USA Finance Company
7.875% 3/15/98............................... 1,500,000 1,551,090
English China Clays Delaware, Inc.
7.375% 10/1/02............................... 1,000,000 1,022,230
Enron Corporation
8.100% 12/15/96.............................. 1,500,000 1,536,810
Equifax, Inc.
6.500% 6/15/03............................... 1,250,000 1,226,650
Ford Motor Company
7.875% 10/15/96.............................. 2,000,000 2,039,780
General Motors Acceptance Corporation
6.300% 9/10/97............................... 2,500,000 2,495,600
<CAPTION>
Market
Principal Value
Amount (Note 2A)
------------ ------------
<S> <C> <C>
BONDS AND NOTES (Continued)
Corporate Debt (Continued)
The Goldman Sachs Group, L.P. 144A
6.200% 2/15/01............................... $ 2,000,000 $ 1,956,860
W.R. Grace & Co.
7.750% 10/1/02............................... 2,100,000 2,178,771
Hercules Incorporated
6.625% 6/1/03................................ 2,000,000 1,979,700
ITT Corporation
5.250% 2/15/96............................... 1,000,000 993,830
ITT Financial Corporation
7.250% 5/15/97............................... 1,000,000 1,015,030
Imcera Group, Inc.
6.000% 10/15/03.............................. 2,000,000 1,845,320
Leucadia National Corporation
7.750% 8/15/13............................... 2,000,000 1,946,800
Lockheed Corporation
5.650% 4/1/97................................ 2,000,000 1,981,220
McDonnell Douglas Corporation
9.250% 4/1/02................................ 1,400,000 1,580,292
Morgan Stanley Group Inc.
8.000% 10/15/96.............................. 1,500,000 1,529,700
Newmont Mining Corporation
8.625% 4/1/02................................ 2,000,000 2,146,420
Penske Truck Leasing Co., L.P.
7.750% 5/15/99............................... 1,250,000 1,284,188
Polaroid Corporation
7.250% 1/15/97............................... 1,000,000 1,011,050
Polaroid Corporation
8.000% 3/15/99............................... 1,000,000 1,041,180
Rolls Royce Capital Inc.
7.125% 7/29/03............................... 3,000,000 3,023,400
Service Corporation International
7.000% 6/1/15................................ 2,250,000 2,282,940
Tele Communications, Inc.
8.250% 1/15/03............................... 2,000,000 2,053,860
Tenaga Nasional Berhad 144A
7.875% 6/15/04............................... 1,250,000 1,326,000
Textron Inc.
9.550% 3/19/01............................... 1,000,000 1,120,250
Thomas & Betts Corporation
8.250% 1/15/04............................... 1,500,000 1,588,500
Time Warner Entertainment Company, L.P.
9.625% 5/1/02................................ 2,000,000 2,241,340
US West Capital Funding Corporation
8.375% 10/18/99.............................. 3,000,000 3,200,250
Union Oil of California
8.750% 8/15/01............................... 1,500,000 1,651,890
United Air Lines, Inc.
10.110% 2/19/06............................... 476,860 521,428
Valassis Communications, Inc.
9.550% 12/1/03............................... 2,000,000 2,205,700
Westinghouse Electric Corporation
8.375% 6/15/02............................... 1,200,000 1,254,348
------------ ------------
Total Corporate Debt
(Cost $76,804,087) 74,676,860 77,258,452
------------ ------------
</TABLE>
13
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
<S> <C> <C>
BONDS AND NOTES (Continued)
U.S. Government Agency Obligations - 16.23%
Federal Home Loan Mortgage
Corporation (FHLMC) - 4.46%
Collateralized Mortgage Obligations - 4.28%
FHLMC Series 1322 Class G
7.500% 2/15/07................................. $ 2,000,000 $ 2,045,000
FHLMC Series 1460 Class H
7.000% 5/15/07................................. 2,000,000 2,011,860
FHLMC Series 1080 Class D
7.000% 7/15/20................................. 2,000,000 2,013,120
----------- -----------
6,000,000 6,069,980
Pass-Through Securities - .18%
FHLMC
9.000% 3/1/17.................................. 244,724 257,188
----------- -----------
6,244,724 6,327,168
----------- -----------
Federal National Mortgage
Association (FNMA) - 3.04%
Collateralized Mortgage Obligations - 2.39%
FNMA Series 1993-175 Class PL
5.000% 10/25/02................................ 2,000,000 1,946,240
FNMA Series 1993-191 Class PD
5.400% 3/25/04................................. 1,500,000 1,447,965
----------- -----------
3,500,000 3,394,205
Pass-Through Securities - .65%
FNMA
9.000% 5/1/09................................... 871,234 917,514
----------- -----------
4,371,234 4,311,719
----------- -----------
Government National Mortgage
Association (GNMA) - 5.94%
Collateralized Mortgage Obligations - .74%
JHM Acceptance Corporation, Series E Class 5
8.960% 4/1/19.................................. 964,198 1,047,957
----------- -----------
Pass-Through Securities - 5.20%
GNMA
8.000% 6/15/06 - 3/15/08....................... 7,050,379 7,368,068
----------- -----------
8,014,577 8,416,025
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
<S> <C> <C>
BONDS AND NOTES (Continued)
U.S. Government Guaranteed Notes - 2.79%
1994-A Atlanta, GA
5.780% 8/1/98.................................. $ 130,000 $ 128,324
1994-A Baxter Springs, KS
5.780% 8/1/98.................................. 700,000 690,977
1994-A Boston, MA
5.780% 8/1/98.................................. 745,000 735,397
1994-A Detroit, MI
5.780% 8/1/98.................................. 385,000 380,037
1994-A Egg Harbor, NJ
5.780% 8/1/98.................................. 260,000 256,649
1994-A Kansas City, MO
5.780% 8/1/98.................................. 550,000 542,911
1994-A Mayaguez, PR
5.780% 8/1/98.................................. 295,000 291,197
1994-A Rochester, NY
5.780% 8/1/98.................................. 300,000 296,133
1994-A Sacramento, CA
5.780% 8/1/98.................................. 55,000 54,291
1994-A Saginaw, MI
5.780% 8/1/98.................................. 315,000 310,940
1994-A Youngstown, OH
5.780% 8/1/98.................................. 265,000 261,584
----------- -----------
4,000,000 3,948,440
----------- -----------
Total U.S. Government Agency Obligations
(Cost $22,374,732) 22,630,535 23,003,352
----------- -----------
U.S. Treasury Obligations - 15.37%
U.S. Treasury Bonds - 12.78%
U.S. Treasury Bond
11.250% 2/15/15................................. 1,500,000 2,250,465
U.S. Treasury Bond
8.875% 8/15/17................................. 5,750,000 7,158,750
U.S. Treasury Bond
7.250% 8/15/22................................. 5,200,000 5,544,500
U.S. Treasury Bond
8.125% 8/15/19................................. 2,725,000 3,170,374
----------- -----------
15,175,000 18,124,089
U.S. Treasury Notes - .34%
U.S. Treasury Note
5.750% 8/15/03................................. 500,000 484,765
----------- -----------
U.S. Treasury Strips - 2.25%
U.S. Treasury Strip
0.000% 2/15/15................................. 12,200,000 3,184,322
----------- -----------
Total U.S. Treasury Obligations
(Cost $19,720,762) 27,875,000 21,793,176
----------- -----------
Total Bonds and Notes
(Cost $126,819,596) $133,112,197 130,001,245
============ -----------
</TABLE>
14
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
------------ ------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS* - 6.67%
Commercial Paper
ConAgra, Inc.
6.117% 7/7/95.............................. $ 3,640,000 $ 3,636,257
The Quaker Oats Company
6.305% 7/5/95.............................. 3,500,000 3,497,550
Tyson Foods, Inc.
6.106% 7/14/95............................. 2,320,000 2,314,898
------------ ------------
Total Short-Term Investments
(Cost $9,448,705) $ 9,460,000 9,448,705
============ ------------
Total Investments
(Cost $136,268,301) (a) 98.37% 139,449,950
Other Assets- 1.76 2,495,433
Liabilities- (.13) (180,771)
------- ------------
Net Assets- 100.00% $141,764,612
======= ============
</TABLE>
Table of Open Forward Commitment Contracts
<TABLE>
<CAPTION>
Forward Aggregate Expiration
Commitment Face Value of of Unrealized
Contracts Contracts Contracts Appreciation
---------- ------------- ------------- ----------------
<S> <C> <C> <C>
Government National Mortgage
Association - ARMS
6.000% due 12/16/15 $ 2,000,000 July 1995 $ 1,558
------------
Total Forward Commitment
Contracts $ 1,558
============
(a) Federal Income Tax Information: At
June 30, 1995 the net unrealized
appreciation on investments and forward
commitment contracts based on cost of
$138,269,863 for federal income tax
purposes is as follows:
Aggregate gross unrealized appreciation for
all investments and forward commitments in
which there is an excess of market value over
tax cost................................................. $ 4,876,839
Aggregate gross unrealized depreciation for
all investments and forward commitments in
which there is an excess of tax cost over
market value............................................. (1,693,632)
------------
Net unrealized appreciation.............................. $ 3,183,207
============
</TABLE>
* Rates represent annualized yield on date of purchase and are unaudited.
See Notes to Financial Statements.
15
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
--------- ------------
<S> <C> <C>
EQUITIES - 54.34%
Aerospace & Defense - 1.27%
The Boeing Company........................... 208,000 $ 13,026,000
TRW, Inc. ................................... 105,000 8,386,875
---------- ------------
313,000 21,412,875
---------- ------------
Agribusiness - 1.22%
Archer-Daniels Midland Company............... 540,017 10,057,816
Pioneer Hi-Bred International................ 250,000 10,500,000
---------- ------------
790,017 20,557,816
---------- ------------
Apparel, Textiles, Shoes - .66%
VF Corporation................................ 208,000 11,180,000
---------- ------------
Automotive & Parts - 1.69%
Ford Motor Company........................... 435,000 12,941,250
Genuine Parts Company........................ 410,000 15,528,750
---------- ------------
845,000 28,470,000
---------- ------------
Banking, Savings & Loans - 3.96%
Bank of New York Company, Incorporated....... 449,100 18,132,413
Comerica, Incorporated....................... 460,000 14,777,500
CoreStates Financial Corporation............. 420,000 14,647,500
Norwest Corporation.......................... 328,000 9,430,000
Wachovia Corp. .............................. 274,600 9,816,950
---------- ------------
1,931,700 66,804,363
---------- ------------
Beverages - 1.27%
Brown-Forman Corporation (Class B)........... 345,800 11,541,075
Pepsico, Incorporated........................ 216,000 9,855,000
---------- ------------
561,800 21,396,075
---------- ------------
Chemicals - 2.74%
E.I. du Pont de Nemours and Company.......... 154,000 10,587,500
Eastman Chemical Company..................... 251,975 14,992,512
The Lubrizol Corporation..................... 308,000 10,895,500
Nalco Chemical Company....................... 268,000 9,748,500
---------- ------------
981,975 46,224,012
---------- ------------
Computers & Office Equipment - 4.10%
Hewlett-Packard Company...................... 400,000 29,800,000
International Business Machines Corporation.. 114,000 10,944,000
Pitney Bowes, Inc. .......................... 392,000 15,043,000
Xerox Corporation............................ 114,000 13,366,500
---------- ------------
1,020,000 69,153,500
---------- ------------
Electric Utilities - 1.22%
NIPSCO Industries, Inc. ..................... 185,000 6,290,000
Niagara Mohawk Power Corporation............. 468,000 6,903,000
SCANA Corporation............................ 326,000 7,294,250
---------- ------------
979,000 20,487,250
---------- ------------
Electrical Equipment & Electronics - 5.10%
AMP, Incorporated............................ 582,500 24,610,625
General Electric Company..................... 475,000 26,778,125
General Signal Corporation................... 280,000 11,130,000
Honeywell Inc. .............................. 252,000 10,867,500
Hubbell, Incorporated (Class B).............. 223,440 12,624,360
---------- ------------
1,812,940 86,010,610
---------- ------------
Energy - 4.90%
Amoco Corporation............................ 315,000 $ 20,986,875
Atlantic Richfield Company................... 134,500 14,761,375
Chevron Corporation.......................... 447,000 20,841,375
Kerr McGee Corporation....................... 184,800 9,909,900
Mobil Corporation............................ 168,000 16,128,000
---------- ------------
1,249,300 82,627,525
---------- ------------
Financial Services - .85%
American-Express Company..................... 406,000 14,260,750
---------- ------------
Foods - 1.04%
CPC International, Inc. ..................... 285,000 17,598,750
---------- ------------
Forest Products & Paper - 2.11%
Westvaco Corporation......................... 297,075 13,145,569
Weyerhaeuser Company......................... 476,000 22,431,500
---------- ------------
773,075 35,577,069
---------- ------------
Grocery Retailers - .30%
Albertson's, Inc. ........................... 171,300 5,096,175
---------- ------------
Hardware & Tools - .67%
The Stanley Works............................ 300,000 11,362,500
---------- ------------
Healthcare - 5.05%
Becton, Dickinson and Company................ 263,000 15,319,750
Bristol Myers Squibb Company................. 440,000 29,975,000
Pfizer, Incorporated......................... 280,000 25,865,000
Schering-Plough Corp. ....................... 318,400 14,049,400
---------- ------------
1,301,400 85,209,150
---------- ------------
Household Products - .58%
The Clorox Company........................... 151,000 9,852,750
---------- ------------
Industrial Distribution - .72%
W. W. Grainger, Inc. ........................ 207,000 12,161,250
---------- ------------
Industrial Transportation - 1.27%
Norfolk Southern Corporation................. 230,000 15,496,250
Roadway Services, Inc. ...................... 126,000 5,953,500
---------- ------------
356,000 21,449,750
---------- ------------
Insurance - 1.93%
Jefferson-Pilot Corporation.................. 143,000 7,829,250
SAFECO Corporation........................... 313,500 18,006,813
Unitrin, Inc. ............................... 143,000 6,792,500
---------- ------------
599,500 32,628,563
---------- ------------
Machinery & Components - 1.25%
Dover Corporation............................ 150,000 10,912,500
Parker-Hannifin Corporation.................. 281,250 10,195,313
---------- ------------
431,250 21,107,813
---------- ------------
Metals & Mining - .26%
Reynolds Metals Company...................... 85,700 4,434,975
---------- ------------
</TABLE>
16
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
---------- ------------
<S> <C> <C>
EQUITIES (Continued)
Miscellaneous - Producer - 1.71%
Harsco Corporation................................... 168,050 $ 8,864,638
Minnesota Mining &
Manufacturing Company............................... 350,000 20,037,500
---------- ------------
518,050 28,902,138
---------- ------------
Photography - .79%
Eastman Kodak Company................................ 218,500 13,246,562
---------- ------------
Publishing & Printing - 2.65%
R.R. Donnelley & Sons Company........................ 375,000 13,500,000
The Dun & Bradstreet Corporation..................... 296,000 15,540,000
McGraw - Hill, Inc. ................................. 207,000 15,706,125
---------- ------------
878,000 44,746,125
---------- ------------
Retail - 2.03%
Kmart Corporation.................................... 57,600 842,400
The May Department Stores Company.................... 405,000 16,858,125
J.C. Penney Company, Inc. ........................... 112,000 5,376,000
Sears Roebuck & Co. ................................. 185,000 11,076,875
---------- ------------
759,600 34,153,400
---------- ------------
Telephone Utilities - 1.57%
Frontier Corporation................................. 456,500 10,956,000
Ameritech Corporation................................ 179,000 7,876,000
Southern New England
Telecommunications Corporation...................... 215,000 7,578,750
---------- ------------
850,500 26,410,750
---------- ------------
Tire & Rubber - 1.01%
Goodyear Tire & Rubber Company....................... 412,200 17,003,250
---------- ------------
Tobacco - .42%
American Brands, Inc. ............................... 178,100 7,079,475
---------- ------------
Total Equities
(Cost $632,744,428) 916,605,221
------------
<CAPTION>
Market
Principal Value
Amount (Note 2A)
---------- ------------
<S> <C> <C>
BONDS AND NOTES - 13.34%
Asset Backed Securities - 1.00%
Auto Receivables
Daimler-Benz Vehicle Trust 1994-A
5.950% 12/15/00............................. $ 1,842,041 $ 1,836,736
Ford Credit Auto Master Trust 1992-1
6.875% 1/15/99.............................. 1,500,000 1,513,590
Ford Credit 1994-B Grantor Trust
7.300% 10/15/99............................. 1,612,495 1,635,666
GMAC 1992-E Grantor Trust
4.750% 8/15/97.............................. 311,342 308,422
Honda Auto Receivables 1992-A Grantor Trust
4.900% 6/15/98.............................. 332,735 330,445
Nissan Auto Receivables 1994-A Grantor Trust
6.450% 9/15/99.............................. 5,644,569 5,662,179
World Omni Leasing Asset-Backed, Inc.
5.800% 1/15/97.............................. 121,760 121,683
World Omni 1994-A Automobile Lease
Securitization Trust
6.450% 9/25/00.............................. 5,500,000 5,507,150
---------- ------------
Total Asset Backed Securities
(Cost $16,935,845) 16,864,942 16,915,871
---------- ------------
Corporate Debt - 4.66%
AMR Corporation
9.000% 8/1/12............................... 2,000,000 2,112,420
American Airlines, Inc.
9.780% 11/26/11............................. 5,000,000 5,606,250
American Brands, Inc.
8.570% 2/15/96.............................. 1,000,000 1,014,950
American General Finance Corporation
7.750% 1/15/97.............................. 2,000,000 2,043,660
Analog Devices, Inc.
6.625% 3/1/00............................... 1,500,000 1,476,780
Bell Atlantic Financial Services Inc.
6.610% 2/4/00............................... 1,000,000 1,008,370
Cardinal Distribution, Inc.
8.000% 3/1/97............................... 2,000,000 2,041,580
Chrysler Financial Corp.
6.620% 4/29/97.............................. 2,000,000 2,011,160
Comdisco, Inc.
6.200% 3/5/96............................... 1,500,000 1,499,010
Corning Glass Works
8.875% 3/15/16.............................. 500,000 572,025
Delta Air Lines, Inc.
8.540% 1/2/07............................... 4,578,616 4,670,188
ERAC USA Finance Company
7.875% 3/15/98.............................. 4,000,000 4,136,240
English China Clays Delaware, Inc.
7.375% 10/1/02.............................. 1,000,000 1,022,230
Enron Corporation
8.100% 12/15/96............................. 1,000,000 1,024,540
Ford Motor Credit Company
8.450% 7/15/06.............................. 1,500,000 1,508,280
GTE Corporation
9.100% 6/1/03............................... 1,000,000 1,131,840
General Motors Acceptance Corporation
9.125% 7/15/01.............................. 1,500,000 1,661,205
The Goldman Sachs Group, L.P. 144A
6.200% 2/15/01.............................. 4,000,000 3,913,720
</TABLE>
17
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- -----------
<S> <C> <C>
BONDS AND NOTES (Continued)
Corporate Debt (Continued)
Leucadia National Corporation
7.750% 8/15/13................................ $ 3,000,000 $ 2,920,200
McDonnell Douglas Corporation
9.250% 4/1/02................................. 2,200,000 2,483,316
Morgan Stanley Group Inc.
8.000% 10/15/96............................... 2,000,000 2,039,600
Newmont Mining Corporation
8.625% 4/1/02................................. 5,000,000 5,366,050
Polaroid Corporation
7.250% 1/15/97................................ 4,500,000 4,549,725
Rolls Royce Capital Inc.
7.125% 7/29/03................................ 4,000,000 4,031,200
SAFECO Corporation
10.750% 9/15/95................................ 500,000 504,060
Service Corporation International
7.000% 6/1/15................................. 4,500,000 4,565,880
Tenaga Nasional Berhad 144A
7.875% 6/15/04................................ 2,500,000 2,652,000
Thomas & Betts Corporation
8.250% 1/15/04................................ 1,000,000 1,059,000
Time Warner Entertainment Company, L.P.
9.625% 5/1/02................................. 1,000,000 1,120,670
The Toro Company
11.000% 8/1/17................................. 2,000,000 1,980,000
United States Leasing International Inc.
8.750% 5/1/96................................. 3,500,000 3,570,420
Valassis Communications, Inc.
9.550% 12/1/03................................ 2,000,000 2,205,700
Westinghouse Electric Corporation
8.375% 6/15/02................................ 1,000,000 1,045,290
------------ ------------
Total Corporate Debt
(Cost $75,793,954).................................. 75,778,616 78,547,559
------------ ------------
U.S. Government Agency Obligations - 3.49%
Federal Home Loan Mortgage
Corporation (FHLMC) - .76%
Collateralized Mortgage Obligations - .71%
FHLMC Series 1080 Class D
7.000% 7/15/20................................ 5,000,000 5,032,800
FHLMC Series 1322 Class G
7.500% 2/15/07................................ 5,000,000 5,112,500
FHLMC Series 1460 Class 4
7.000% 5/15/07............................... 1,789,000 1,799,609
------------ ------------
11,789,000 11,944,909
Pass - Through Securities - .05%
FHLMC
9.000% 3/1/17................................. 734,171 771,563
------------ ------------
12,523,171 12,716,472
------------ ------------
Federal National Mortgage
Association (FNMA) - .58%
Collateralized Mortgage Obligations - .33%
FNMA Series 1993-175 Class PL
5.000% 10/25/02............................... 4,130,000 4,018,986
FNMA Series 1993-191 Class PD
5.400% 3/25/04............................... 1,500,000 1,447,965
------------ ------------
5,630,000 5,466,951
Federal National Mortgage
Association (FNMA) (Continued)
Pass - Through Securities - .25%
FNMA
8.000% 5/1/13................................ $ 4,084,738 $ 4,239,059
------------ ------------
9,714,738 9,706,010
------------ ------------
Government National Mortgage
Association (GNMA) - .91%
Collateralized Mortgage Obligations - .12%
JHM Acceptance Corporation, Series E Class 5
8.960% 4/1/19................................ 1,928,395 2,095,915
------------ ------------
Pass - Through Securities - .79%
GNMA
8.000% 1/15/04-5/15/08....................... 9,634,671 10,068,812
GNMA
9.000% 8/15/08-9/15/09....................... 2,937,150 3,190,272
------------ ------------
12,571,821 13,259,084
------------ ------------
14,500,216 15,354,999
------------ ------------
U.S. Government Guaranteed Notes - 1.24%
1994-A Abilene, TX
5.780% 8/1/98............................... 70,000 69,098
1994-A Bakersfield, CA
5.780% 8/1/98............................... 245,000 241,842
1994-A Barberton, OH
5.780% 8/1/98............................... 75,000 74,033
1994-A Buffalo, NY
5.780% 8/1/98............................... 375,000 370,166
1991-A Caguas, PR
8.740% 8/1/01............................... 280,000 310,624
1991-A Council Bluffs, IA
8.740% 8/1/01............................... 155,000 171,952
1994-A Cumberland, MD
5.780% 8/1/98............................... 55,000 54,291
1994-A Elizabeth, NJ
5.780% 8/1/98............................... 75,000 74,033
1994-A Erie, PA
5.780% 8/1/98............................... 70,000 69,098
1994-A Euclid, OH
5.780% 8/1/98............................... 105,000 103,647
1994-A Fairfax County, VA
5.780% 8/1/98............................... 110,000 108,582
1991-A Fairfax County, VA
8.740% 8/1/01............................... 85,000 94,296
1991-A Fajardo, PR
8.740% 8/1/01............................... 210,000 232,968
1994-A Fort Myers, FL
5.040% 8/1/96............................... 120,000 118,800
1994-A Fort Myers, FL
5.780% 8/1/98............................... 135,000 133,260
1991-A Gasden, AL
8.740% 8/1/01............................... 100,000 110,937
1994-A Jacksonville, FL
5.040% 8/1/96............................... 200,000 198,000
1994-A Lawrence, MA
5.040% 8/1/96............................... 35,000 34,650
1994-A Lawrence, MA
5.780% 8/1/98............................... 40,000 39,484
1994-A Little Rock, AK
5.040% 8/1/96............................... 310,000 306,900
</TABLE>
18
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
---------- ------------
<S> <C> <C>
BONDS AND NOTES (Continued)
U.S. Government Guaranteed Notes (Continued)
1994-A LA County, CA
5.040% 8/1/96.............................. $ 145,000 $ 143,550
1994-A LA County, CA
5.780% 8/1/98.............................. 175,000 172,744
1991-A Lorain, OH
8.740% 8/1/01.............................. 30,000 33,281
1994-A Macon, GA
5.040% 8/1/96.............................. 25,000 24,750
1994-A Mayaguez, PR
5.780% 8/1/98.............................. 65,000 64,162
1991-A Mayaguez, PR
8.740% 8/1/01.............................. 150,000 166,406
1994-A Mobile, AL
5.780% 8/1/98.............................. 205,000 202,358
1994-A Montgomery County, PA
5.040% 8/1/96.............................. 215,000 212,850
1994-A Montgomery County, PA
5.780% 8/1/98.............................. 230,000 227,035
1994-A New Orleans, LA
5.780% 8/1/98.............................. 175,000 172,744
1994-A Ocean Shores, WA
5.780% 8/1/98.............................. 110,000 108,582
1994-A Pasadena, CA
5.780% 8/1/98.............................. 140,000 138,195
1994-A Providence, RI
5.040% 8/1/96.............................. 40,000 39,600
1994-A Providence, RI
5.780% 8/1/98.............................. 50,000 49,356
1994-A Reading, PA
5.040% 8/1/96.............................. 15,000 14,850
1994-A Reading, PA
5.780% 8/1/98.............................. 65,000 64,163
1994-A Roanoke, VA
5.780% 8/1/98.............................. 210,000 207,293
1994-A Rochester, NY
5.040% 8/1/96.............................. 155,000 153,450
1994-A Rochester, NY
5.780% 8/1/98.............................. 165,000 162,873
1991-A Rochester, NY
8.650% 8/1/00.............................. 4,295,000 4,694,950
1994-A Sacramento, CA
5.040% 8/1/96.............................. 125,000 123,750
1994-A Sacramento, CA
5.780% 8/1/98.............................. 300,000 296,133
1994-A St. Joseph, MO
5.040% 8/1/96.............................. 70,000 69,300
1994-A Salt Lake City, UT
5.040% 8/1/96.............................. 135,000 133,650
1994-A Schaumburg, IL
5.040% 8/1/96.............................. 60,000 59,400
1994-A Syracuse, NY
5.040% 8/1/96.............................. 50,000 49,500
1994-A Syracuse, NY
5.780% 8/1/98.............................. 50,000 49,356
1994-A Tacoma, WA
5.040% 8/1/96.............................. 130,000 128,700
1994-A Tacoma, WA
5.780% 8/1/98.............................. 155,000 153,002
1994-A Trenton, NJ
5.040% 8/1/96.............................. 120,000 118,800
1994-A Trenton, NJ
5.780% 8/1/98.............................. 130,000 128,324
<CAPTION>
Market
Principal Value
Amount (Note 2A)
---------- ------------
<S> <C> <C>
BONDS AND NOTES (Continued)
U.S. Government Guaranteed Notes (Continued)
1994-A Virginia Beach, VA
5.780% 8/1/98.............................. $ 260,000 $ 256,648
1994-A Waterford Township, MI
5.040% 8/1/96.............................. 50,000 49,500
1994-A Waterford Township, MI
5.780% 8/1/98.............................. 55,000 54,291
1994-A West Palm Beach, FL
5.780% 8/1/98.............................. 105,000 103,647
Housing and Urban Development, Series 1995-A
8.240% 8/1/02.............................. 8,475,000 9,278,515
------------ ------------
19,780,000 21,022,369
------------ ------------
Total U.S. Government Agency Obligations
(Cost $55,842,171) 56,518,125 58,799,850
------------ ------------
U.S. Treasury Obligations - 4.19%
U.S. Treasury Bonds - 1.75%
U.S. Treasury Bond
7.125% 2/15/23............................. 24,200,000 25,496,878
U.S. Treasury Bond
8.125% 8/15/19............................. 3,500,000 4,072,040
------------ ------------
27,700,000 29,568,918
U.S. Treasury Notes - 2.44% ------------ ------------
U.S. Treasury Note
6.500% 4/30/99............................. 12,000,000 12,206,280
U.S. Treasury Note
7.500% 11/15/01............................ 4,000,000 4,293,760
U.S. Treasury Note
7.875% 4/15/98............................. 14,000,000 14,704,340
U.S. Treasury Note
8.875% 11/15/98............................ 9,210,000 10,013,020
------------ ------------
39,210,000 41,217,400
------------ ------------
Total U.S. Treasury Obligations
(Cost $69,086,200) 66,910,000 70,786,318
------------ ------------
Total Bonds and Notes
(Cost $217,658,170) $216,071,683 225,049,598
============ ------------
SHORT TERM INVESTMENTS* - 31.88%
Commercial Paper
American Express Credit Corp.
6.027% 9/1/95.............................. $ 10,215,000 10,106,849
Aristar, Inc.
6.174% 7/19/95............................. 6,000,000 5,981,080
Aristar, Inc.
6.089% 8/4/95.............................. 11,100,000 11,036,034
Aristar, Inc.
5.936% 9/21/95............................. 9,635,000 9,500,605
Bemis Company Inc.
6.048% 7/3/95.............................. 5,035,000 5,033,251
Boston Edison Company
6.136% 8/22/95............................. 5,990,000 5,937,647
Brown Group Inc.
6.302% 7/10/95............................. 9,295,000 9,280,585
Brown Group Inc.
6.297% 7/11/95............................. 5,580,000 5,570,385
</TABLE>
19
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
------------ -----------
<S> <C> <C>
SHORT TERM INVESTMENTS* (Continued)
Commercial Paper (Continued)
Brown Group Inc.
6.140% 8/28/95.................................... $ 7,290,000 $ 7,217,141
Caterpillar Financial Services Corporation
6.100% 7/13/95.................................... 7,000,000 6,985,043
Caterpillar Financial Services Corporation
6.202% 9/7/95..................................... 12,265,000 12,122,777
Champion International Corporation
6.151% 7/27/95.................................... 9,860,000 9,814,727
Coca Cola Company
5.925% 8/29/95.................................... 9,820,000 9,720,982
Coca Cola Company
5.866% 9/20/95.................................... 10,125,000 9,985,472
ConAgra, Inc.
6.027% 8/25/95.................................... 11,880,000 11,768,331
ConAgra, Inc.
6.027% 9/12/95.................................... 13,350,000 13,183,978
Dana Credit Corporation
6.194% 9/8/95..................................... 1,560,000 1,541,648
Dean Witter Discover & Company
6.091% 7/31/95.................................... 10,000,000 9,948,559
Enron Corp.
6.495% 9/19/95.................................... 5,435,000 5,361,016
Enron Corp.
6.044% 9/18/95.................................... 9,800,000 9,668,244
Ford Motor Credit Company
5.898% 9/22/95.................................... 7,540,000 7,433,560
GTE Finance Corporation
6.056% 8/3/95..................................... 7,285,000 7,244,799
General Motors Acceptance Corporation
6.190% 7/14/95.................................... 4,275,000 4,265,424
General Motors Acceptance Corporation
5.920% 10/20/95................................... 14,535,000 14,261,419
Georgia Power Company
6.178% 7/6/95..................................... 5,875,000 5,869,769
Georgia Power Company
6.092% 7/17/95.................................... 7,900,000 7,878,219
Georgia Power Company
6.039% 8/10/95.................................... 7,000,000 6,950,388
Hercules Incorporated
6.093% 7/18/95.................................... 6,800,000 6,780,080
Hershey Foods Corp.
6.015% 8/21/95.................................... 5,685,000 5,635,858
IBM Credit Corporation
6.091% 7/12/95.................................... 8,155,000 8,139,285
IBM Credit Corporation
5.864% 8/31/95.................................... 7,640,000 7,560,395
Illinois Power Company
6.289% 7/25/95.................................... 5,385,000 5,362,912
Kimberly Clark Corp.
6.003% 8/11/95.................................... 7,700,000 7,645,600
Kimberly Clark Corp.
5.830% 9/8/95..................................... 9,875,000 9,758,832
McCormick & Company Inc.
6.145% 7/5/95..................................... 4,515,000 4,511,836
Melville Corporation
6.220% 12/5/95.................................... 8,965,000 8,726,954
Motorola Inc.
6.061% 7/21/95.................................... 9,780,000 9,746,295
Motorola Inc.
5.994% 8/17/95.................................... 3,520,000 3,491,025
Market
Principal Value
Amount (Note 2A)
------------ ------------
SHORT TERM INVESTMENTS* (Continued)
Commercial Paper (Continued)
Motorola Inc.
5.963% 8/18/95.................................... $ 8,835,000 $ 8,761,924
Northern States Power Company
6.019% 9/15/95.................................... 10,500,000 10,364,127
NYNEX Corp.
6.124% 7/28/95.................................... 7,055,000 7,020,818
NYNEX Corp.
5.860% 9/11/95.................................... 13,940,000 13,768,983
Olin Corporation
6.300% 7/7/95..................................... 6,615,000 6,608,161
ORIX Credit Alliance, Inc.
6.241% 7/26/95.................................... 7,495,000 7,462,443
ORIX Credit Alliance, Inc.
6.128% 8/15/95.................................... 5,170,000 5,130,568
ORIX Credit Alliance, Inc.
6.087% 9/13/95.................................... 6,594,000 6,510,888
ORIX Credit Alliance, Inc.
6.092% 9/25/95.................................... 6,515,000 6,419,745
Philip Morris Companies, Inc.
5.999% 8/8/95..................................... 10,000,000 9,934,842
Philip Morris Companies, Inc.
6.005% 8/14/95.................................... 7,775,000 7,717,017
Potomac Electric Power Company
6.110% 8/2/95..................................... 6,990,000 6,951,135
Potomac Electric Power Company
6.104% 8/9/95..................................... 14,140,000 14,043,866
Proctor & Gamble Company
5.929% 8/16/95.................................... 4,000,000 3,968,294
Proctor & Gamble Company
5.913% 9/14/95.................................... 4,300,000 4,245,079
PS Colorado Credit Corporation
6.214% 8/1/95..................................... 8,085,000 8,042,166
PS Colorado Credit Corporation
6.185% 8/30/95.................................... 6,000,000 5,938,492
Rite Aid Corporation
6.194% 8/3/95..................................... 5,325,000 5,293,967
Rite Aid Corporation
6.050% 11/6/95.................................... 10,000,000 9,783,208
Shell Oil Company
5.851% 8/24/95.................................... 8,465,000 8,385,608
Shell Oil Company
5.811% 9/29/95.................................... 11,200,000 11,028,718
Textron Financial Corporation
6.132% 7/14/95.................................... 7,090,000 7,074,459
Textron Financial Corporation
5.888% 9/6/95..................................... 7,160,000 7,078,177
Textron Financial Corporation
6.101% 8/16/95.................................... 8,300,000 8,235,836
VF Corporation
6.192% 9/5/95..................................... 5,530,000 5,467,734
Western Resources Inc.
6.141% 8/7/95..................................... 10,000,000 9,936,243
Whirlpool Financial Corp.
6.146% 7/20/95.................................... 7,820,000 7,793,544
Whirlpool Financial Corp.
6.127% 7/24/95.................................... 9,800,000 9,761,478
Xerox Corp.
5.822% 8/23/95.................................... 14,070,000 13,942,573
------------ -----------
Total Short-Term Investments
(Cost $537,852,371)............................... $542,434,000 537,697,097
============ -----------
</TABLE>
20
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Market
Value
(Note 2A)
--------------
<S> <C> <C>
Total Investments - 99.56%
(Cost $1,388,254,969) (a) $1,679,351,916
Other Assets .87 14,672,607
Liabilities (.43) (7,306,563)
-------- --------------
Net Assets 100.00% $1,686,717,960
======== ==============
</TABLE>
Table of Open Forward Commitment Contracts
<TABLE>
<CAPTION>
Forward Aggregate Expiration
Commitment Face Value of of Unrealized
Contracts Contracts Contracts Appreciation
---------- ------------- ---------- ------------
<S> <C> <C> <C>
Government National Mortgage
Association - ARMS
6.000% due 12/15/15 $ 5,000,000 July 1995 $ 3,894
United States of America
7.500% due 2/15/05 51,200,000 August 1995 2,942,781
--------------
Total Forward Commitment
Contracts $ 2,946,675
==============
(a) Federal Income Tax Information: At
June 30, 1995 the net unrealized
appreciation on investments and forward
commitment contracts based on cost of
$1,446,484,285 for federal income tax
purposes is as follows:
Aggregate gross unrealized appreciation for
all investments and forward commitments in
which there is an excess of market value
over tax cost.......................................... $ 300,484,427
Aggregate gross unrealized depreciation for
all investments and forward commitments in
which there is an excess of tax cost over
market value........................................... (6,950,501)
--------------
Net unrealized appreciation............................ $ 293,533,926
==============
</TABLE>
*Rates represent annualized yield on date of purchase and are unaudited.
See Notes to Financial Statements.
21
<PAGE>
MML Series Investment Fund
Notes To Financial Statements
(Unaudited)
1. History
MML Series Investment Fund (the "MML Trust") is registered under the Investment
Company Act of 1940 as a no load, registered open end, diversified management
investment company. MML Equity Fund, MML Money Market Fund, MML Managed Bond
Fund and MML Blend Fund (the "Funds") are the four series of shares of the
MML Trust. The MML Trust is organized under the laws of the Commonwealth of
Massachusetts pursuant to an Agreement and Declaration of Trust.
The MML Trust was established by Massachusetts Mutual Life Insurance Company
("MassMutual") for the purpose of providing vehicles for the investment of
assets of various separate investment accounts established by MassMutual and by
life insurance companies which are subsidiaries of MassMutual. Shares of the
MML Trust are not offered to the general public. MassMutual at June 30, 1995,
was the beneficial owner of 1.2% of MML Blend Fund's shares.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed
consistently by each Fund in the preparation of the financial statements in
conformity with generally accepted accounting principles.
A. Investment Valuation
Equity securities are valued on the basis of valuations furnished by a pricing
service, authorized by the Board of Trustees, which provides the last reported
sale price for securities listed on a national securities exchange, or on the
NASDAQ national market system. If securities are unlisted, or there is no
reported sale price, the bid price of the prior trade date will be used. Long-
term bonds are valued on the basis of valuations furnished by a pricing
service, authorized by the Board of Trustees, which determines valuations
taking into account appropriate factors such as institutional-size, trading in
similar groups of securities, yield, quality, coupon rate, maturity, type of
issue, trading characteristics and other market data.
For MML Equity Fund, MML Managed Bond Fund, and MML Blend Fund, short-term
securities with more than sixty days to maturity from the date of purchase are
valued at market and short-term securities having a maturity from the date of
purchase of sixty days or less are valued at amortized cost. MML Money Market
Fund's portfolio securities are valued at amortized cost in accordance with a
rule of the Securities and Exchange Commission pursuant to which MML Money
Market Fund must adhere to certain conditions. It is the intention of
MML Money Market Fund to maintain a per share net asset value of $1.00.
B. Accounting For Investments
Investment transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Premiums and discounts on short-term securities are amortized in
determining interest income.
The cost basis of long-term bonds is not adjusted for amortization of premium
or accrual of discount since MML Managed Bond Fund and MML Blend Fund do not
generally intend to hold such investments until maturity; however, the
MML Trust has elected to accrue for financial reporting purposes, certain
discounts which are required to be accrued for federal income tax purposes.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and federal income tax purposes on the identified cost method.
C. Federal Income Tax
The MML Trust has established a policy for each of the Funds to comply with
the provisions of the Internal Revenue Code applicable to regulated investment
companies. As a result, the Funds will not be subject to federal income tax on
any net investment income and any net capital gains to the extent they are
distributed or are deemed to have been distributed to shareholders.
Actual distributions differ from net investment income and net realized gains
due to timing differences, primarily the deferral of wash sale losses.
22
<PAGE>
Notes To Financial Statements (Continued)
D. Forward Commitments
Each Fund may purchase or sell securities on a "when issued" or delayed
delivery or on a forward commitment basis. The Funds use forward commitments
to manage interest rate exposure or as a temporary substitute for purchasing
or selling particular debt securities. Forward commitments are not used for
purposes of trading. Settlement for securities purchased on a forward
commitment basis can take place a month or more after the date of the
transaction. The Fund generally does not take delivery on these forward
commitments, but such commitments are instead settled with offsetting
transactions. When a forward commitment contract is closed, the Funds record a
realized gain or loss. Forward commitments involve a risk of loss if the value
of the security to be purchased declines prior to the settlement date. The
Funds could also be exposed to loss if they can not close out their forward
commitments because of an illiquid secondary market, or the inability of
counterparties to perform. The Fund monitors exposure to ensure counterparties
are credit worthy and concentration of exposure is minimized. The Funds
instruct the custodian to segregate assets in a separate account with a
current market value at least equal to the amount of its forward purchase
commitments. The price of the underlying security and the date when the
securities will be delivered and paid for are fixed at the time the
transaction is negotiated. The value of the forward commitment is determined
by management using a commonly accepted pricing model and fluctuates based
upon changes in the value of the underlying security and market repo rates.
Such rates equate the counterparty's cost to purchase and finance the
underlying security to the earnings received on the security and forward
delivery proceeds. The Funds record on a daily basis the unrealized
appreciation/depreciation based upon changes in the value of the forward
commitment. At June 30, 1995, the cost (value) of forward commitments to
purchase securities amounted to $2,001,563 ($2,003,120) and $57,719,621
($60,666,296) for the MML Managed Bond Fund and MML Blend Fund, respectively.
3. Capital Loss Carryforward
The accumulated net realized loss on investments for the MML Money Market Fund
results in a capital loss carryforward of $8,893 which is available for federal
income tax purposes to offset future capital gains. Of the total carryforward,
$485 expires December 31, 1997, $1,639 expires December 31, 1998, $1,204 expires
December 31, 2000, $201 expires December 31, 2001 and $5,364 expires
December 31, 2002.
The accumulated net realized loss on investments for the MML Managed Bond Fund
results in a capital loss carryforward of $2,170,114 which is available for
federal income tax purposes to offset future capital gains. This carryforward
expires December 31, 2002.
4. Investment Management Fee
MassMutual provides all investment advisory, management and administrative
services needed by the Funds. For acting as such, MassMutual receives a
quarterly fee from each Fund at the annual rate of .50% of the first
$100,000,000 of the average daily net asset value of each Fund, .45% of the
next $200,000,000, .40% of the next $200,000,000, and .35% of any excess over
$500,000,000.
MassMutual has entered into an investment sub-advisory agreement with Concert
Capital Management, Inc. ("Concert"), a wholly-owned subsidiary of Babson
Acquisition Corporation which is a controlled subsidiary of MassMutual. The
agreement provides that Concert manages the assets of MML Equity Fund and the
assets of the Equity Sector of MML Blend Fund. MassMutual pays Concert a
quarterly fee equal to an annual rate of .13% of the average daily net asset
value of MML Equity Fund and the Equity Sector of MML Blend Fund.
MassMutual has agreed, at least through April 30, 1996, to bear the expenses
of the Funds to the extent that the aggregate expenses (excluding each Fund's
management fee, interest, taxes, brokerage commissions and extraordinary
expenses) incurred during each Fund's fiscal year exceed .11% of the average
daily net asset value of each Fund for such year. For the period ended June 30,
1995, MassMutual was not required to reimburse the Funds for any expenses.
23
<PAGE>
Notes To Financial Statements (Continued)
5. Purchases and Sales of Investments and Forward Commitments
<TABLE>
<CAPTION>
Proceeds
Acquisition from Sales
Investments Cost and Maturities
- ----------- -------------- --------------
<S> <C> <C>
MML EQUITY FUND
Equities....................................................................... $ 107,383,620 $ 69,581,785
Short term investments......................................................... 578,278,251 546,873,639
MML MONEY MARKET FUND
Short term investments......................................................... 318,594,877 312,603,826
MML MANAGED BOND FUND
Bonds and notes................................................................ 19,420,199 12,490,612
U.S. Government investments - long term........................................ 12,344,964 13,046,564
Short term investments......................................................... 270,615,558 268,809,554
MML BLEND FUND
Equities....................................................................... 51,896,506 79,972,831
Bonds and notes................................................................ 21,353,638 14,650,722
U.S. Government investments - long term........................................ 25,773,520 71,655,642
Short term investments......................................................... 1,089,718,069 991,520,633
<CAPTION>
Cost
Forward Commitments of Contracts
- ------------------- --------------
<S> <C>
MML MANAGED BOND FUND
U.S. Treasury and GNMA Forward Commitment Contracts:
Contracts opened.............................................................. $ 16,303,086
Contracts closed.............................................................. 21,317,004
Outstanding at June 30, 1995................................................. 2,001,563
MML BLEND FUND
U.S. Treasury and GNMA Forward Commitment Contracts:
Contracts opened.............................................................. 119,070,211
Contracts closed.............................................................. 114,010,272
Outstanding at June 30, 1995................................................. 57,719,621
</TABLE>
6. Net Increase from Capital Share Transactions
<TABLE>
<CAPTION>
For the Period Ended June 30, 1995
---------------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares
Reinvestment of dividends..................... 1,621,795 2,564,542 382,310 3,417,784
Sales of shares............................... 3,762,641 27,928,570 862,543 2,926,863
Redemptions of shares......................... (879,910) (21,744,685) (550,609) (2,334,261)
------------ ------------ ------------ ------------
Net increase.................................. 4,504,526 8,748,427 694,244 4,010,386
============ ============ ============ ============
Amount
Reinvestment of dividends..................... $ 33,282,252 $ 2,564,542 $ 4,339,430 $ 61,266,015
Sales of shares............................... 83,868,357 27,928,570 10,117,125 54,912,248
Redemptions of shares......................... (19,564,811) (21,744,685) (6,403,435) (43,581,301)
------------ ------------ ------------ ------------
Net increase.................................. $ 97,585,798 $ 8,748,427 $ 8,053,120 $ 72,596,962
============ ============ ============ ============
<CAPTION>
For the Period Ended June 30, 1994
---------------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares
Reinvestment of dividends..................... 1,956,594 1,173,048 555,900 701,563
Sales of shares............................... 4,390,469 38,139,172 990,442 8,769,346
Redemptions of shares......................... (932,512) (31,335,202) (1,194,191) (1,105,900)
------------ ------------ ------------ ------------
Net increase.................................. 5,414,551 7,977,018 352,151 8,365,009
============ ============ ============ ============
Amount
Reinvestment of dividends..................... $ 40,128,958 $ 1,173,048 $ 6,751,297 $ 12,270,118
Sales of shares............................... 90,412,371 38,139,172 11,961,300 159,848,042
Redemptions of shares......................... (18,920,228) (31,335,202) (14,445,419) (20,104,899)
------------ ------------ ------------ ------------
Net increase.................................. $111,621,101 $ 7,977,018 $ 4,267,178 $152,013,261
============ ============ ============ ============
</TABLE>
24
