Registration No. 2-73969
File No. 811-3255
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 25 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940 /X/
Amendment No. 25 /X/
PANORAMA SERIES FUND, INC.
________________________________________________________________
(Exact Name of Registrant as Specified in Charter)
6803 South Tucson Way, Englewood, Colorado 80112
________________________________________________________________
(Address of Principal Office)(Zip Code)
(303)768-3200
_________________________________________________________________
Registrant's Telephone Number
Andrew J. Donohue, Secretary
Panorama Series Fund, Inc.
6803 South Tucson Way
Englewood, Colorado 80112
_________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check
appropriate box)
/ / immediately upon filing pursuant to paragraph (b)
/X/ on May 1, 1997 pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)
/ / on (date) pursuant to paragraph (a), of Rule 485
Registrant has registered an indefinite number of securities under
the Securities Act of 1933 pursuant to of Rule 24f-2 promulgated
under the Investment Company Act of 1940. The Company's Rule 24f-2
Notice for the fiscal year ending December 31, 1996 was filed on or
about February 27, 1997.
<PAGE>
FORM N-1A
PANORAMA SERIES FUND, INC.
Cross Reference Sheet
Part A of
Form N-1A
Item No. Prospectus Heading
- --------- ------------------
1 Front Cover Page
2 Overview of the Portfolios
3 Financial Highlights; Performance of the
Portfolios
4 Front Cover Page; How the Portfolios are Managed--
Organization and History; Investment Objectives
and Policies; Investment Restrictions
5 How the Portfolios are Managed; Expenses; Back
Cover
5A Performance of the Portfolios
6 How the Portfolios are Managed - Organization and
History; The Transfer Agent; Dividends, Capital
Gains and Taxes; Investment Objectives and
Policies
8 How to Sell Shares
9 *
Part B of
Form N-1A
Item No. Statement of Additional Information Heading
- --------- -------------------------------------------
10 Cover Page
11 Cover Page
12 *
13 Investment Objectives and Policies; Other
Investment Techniques and Strategies; Additional
Investment Restrictions
14 How the Portfolios are Managed--Directors and
Officers of the Portofolios
15 How the Portfolios are Managed-- Major
Shareholders
16 How the Portfolios are Managed
17 Brokerage Policies of the Portfolios
18 Additional Information About the Portfolios
19 Your Investment Account - How to Buy Shares; How
to Sell Shares
20 Dividends, Capital Gains and Taxes
21 How the Portfolios are Managed; Brokerage Policies
of the Portfolios
22 Performance of the Portfolios
23 Financial Statements
______________
* Not applicable or negative answer.
Panorama Series Fund, Inc.
Prospectus Dated May 1, 1997
Panorama Series Fund, Inc. (referred to in this Prospectus as
the "Company") is an open-end investment company consisting of
seven separate series (each is referred to as a "Portfolio" and
collectively, as the "Portfolios"). Shares of the Portfolios are
offered through certain variable annuity or variable life insurance
contracts by insurance companies.
Total Return Portfolio seeks to maximize total investment return
(including both capital appreciation and income) principally by
allocating its assets among stocks, corporate bonds, U.S.
Government securities and money market instruments according to
changing market conditions.
Growth Portfolio seeks long term growth of capital by investing
primarily in common stocks with low price-earnings ratios and
better-than-anticipated earnings. Realization of current income is
a secondary consideration.
International Equity Portfolio seeks long-term growth of capital by
investing primarily in equity securities of companies wherever
located, the primary stock market of which is outside the United
States.
LifeSpan Capital Appreciation Portfolio ("Capital Appreciation
Portfolio") seeks long-term capital appreciation by investing in a
strategically allocated portfolio consisting primarily of stocks.
Current income is not a primary consideration.
LifeSpan Balanced Portfolio ("Balanced Portfolio") seeks a blend of
capital appreciation and income by investing in a strategically
allocated portfolio of stocks and bonds with a slightly stronger
emphasis on stocks.
LifeSpan Diversified Income Portfolio ("Diversified Income
Portfolio") seeks high current income, with opportunities for
capital appreciation by investing in a strategically allocated
portfolio consisting primarily of bonds.
Government Securities Portfolio seeks a high level of current
income with a high degree of safety of principal by investing
primarily in U.S. Government securities and U.S. Government related
securities.
Shares of the Company's Portfolios are offered as investment
vehicles for the variable annuity or variable life insurance
contracts offered through separate accounts of insurance companies
(these are referred to as "Accounts"). Shares of the Portfolios
cannot be purchased directly by investors. The term "shareholder"
in this Prospectus refers only to the insurance companies issuing
the variable contracts. The interests of contract owners with
respect to shares of a Portfolio held for their contracts are
subject to the terms of the contract and the prospectus for your
insurance company's separate accounts, which you as a contract
holder or prospective contract holder should read carefully.
This Prospectus explains concisely what you should know
before investing in the Portfolios. Please read this Prospectus
carefully and keep it for future reference. You can find more
detailed information about each Portfolio in the May 1, 1997
Statement of Additional Information. For a free copy, call
OppenheimerFunds Services, the Portfolios' Transfer Agent, at
1-800-525-7048, or write to the Transfer Agent at the address on
the back cover. The Statement of Additional Information has been
filed with the Securities and Exchange Commission ("SEC") and is
incorporated into this Prospectus by reference (which means that it
is legally part of this Prospectus).
Shares of the portfolios are not deposits or obligations of any
bank, are not guaranteed by any bank, are not insured by the
F.D.I.C. or any other agency, and involve investment risks,
including the possible loss of the principal amount invested.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
Contents
ABOUT THE PORTFOLIOS
Overview of the Portfolios
Financial Highlights
Investment Objectives and Policies
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
LifeSpan Portfolios
Government Securities Portfolio
Investment Risks
Investment Techniques and Strategies
How the Portfolios Are Managed
Performance of the Portfolios
ABOUT YOUR ACCOUNT
How to Buy Shares
How to Sell Shares
Dividends, Capital Gains and Taxes
Appendix A: Description of Ratings Categories of Ratings Services
<PAGE>
ABOUT THE PORTFOLIOS
Overview of the Portfolios
Some of the important facts about the Portfolios are summarized
below, with references to the section of this Prospectus where more
complete information can be found. You should carefully read the
entire Prospectus before making a decision about investing. Keep
the Prospectus for reference after you invest.
What Are the Portfolios' Investment Objectives? Total
Return Portfolio's seeks to maximize total investment return
(including both capital appreciation and income). Growth
Portfolio's seeks long term growth of capital by investing
primarily in common stocks with low price-earnings ratios and
better-than-anticipated earnings. International Equity Portfolio's
seeks long-term growth of capital by investing primarily in equity
securities of companies wherever located, the primary stock market
of which is outside the United States. LifeSpan Capital
Appreciation Portfolio's ("Capital Appreciation Portfolio") seeks
long-term capital appreciation by investing in a strategically
allocated portfolio consisting primarily of stocks. LifeSpan
Balanced Portfolio's ("Balanced Portfolio") seeks a blend of
capital appreciation and income by investing in a strategically
allocated portfolio of stocks and bonds with a slightly stronger
emphasis on stocks. LifeSpan Diversified Income Portfolio's
("Diversified Income Portfolio") seeks high current income, with
opportunities for capital appreciation by investing in a
strategically allocated portfolio consisting primarily of bonds.
Government Securities Portfolio's seeks a high level of current
income with a high degree of safety of principal by investing
primarily in U.S. Government securities and U.S. Government related
securities.
What Do the Portfolios Invest In? To seek their respective
investment objectives, the Portfolios invest as follows. Total
Return Portfolio invests by principally allocating its assets
among stocks, corporate bonds, U.S. Government securities and money
market instruments according to changing market conditions. Growth
Portfolio primarily invests in common stocks with low
price-earnings ratios and better-than-anticipated earnings.
International Equity Portfolio primarily invests in equity
securities of companies wherever located, the primary stock market
of which is outside the United States. LifeSpan Capital
Appreciation Portfolio primarily invests in stocks. LifeSpan
Balanced Portfolio primarily invests in stocks and bonds with a
slightly stronger emphasis on stocks. LifeSpan Diversified Income
Portfolio primarily invests in bonds. Government Securities
Portfolio invests primarily in U.S. Government securities and U.S.
Government related securities. These investments are more fully
explained for each Fund in "Investment Objectives and Policies,"
starting on page ___.
Who Manages the Portfolios? The Portfolio's investment
adviser is OppenheimerFunds, Inc. (the "Manager"), which (including
a subsidiary) advises investment company portfolios having over $62
billion in assets. Each Portfolio's portfolio manager is primarily
responsible for the selection of securities of that Portfolio. The
portfolio managers are as follows: for Total Return Portfolio,
Peter M. Antos, CFA, Michael C. Strathearn, CFA, Stephen F. Libera,
CFA, Kenneth B. White, CFA and Arthur Zimmer; for Growth Portfolio,
Peter M. Antos, CFA, Michael C. Strathearn, CFA, and Kenneth B.
White, CFA; for International Equity Portfolio, (Babson-Stewart)
James W. Burns and John G.L. Wright; for LifeSpan Capital
Appreciation Portfolio, LifeSpan Balanced Portfolio, and LifeSpan
Diversified Portfolio, (the Manager) Peter M. Antos, CFA, Michael
C. Strathearn, CFA, Stephen F. Libera, CFA, Kenneth B. White, CFA,
(Babson-Stewart) James W. Burns and John G.L. Wright, (Pilgrim
Baxter) Gary L. Pilgrim, CFA and Michael D. Jones, CFA and (BEA
Associates) Richard J. Lindquist; and for Government Securities
Portfolio, David A. Rosenberg and David P. Negri. The Manager is
paid an advisory fee by each Portfolio, based on its assets. The
Company's Board of Directors, elected by shareholders, oversees the
investment adviser and the portfolio manager and subadviser.
Please refer to "How The Portfolios Are Managed," starting on page
____ for more information about the Manager and Subadviser and
their fees.
How Risky Are The Portfolios? While different types of
investments have risks that differ in type and magnitude, all
investments carry risk to some degree. Changes in overall market
movements or interest rates, or factors affecting a particular
industry or issuer, can affect the value of the Portfolios'
investments and their price per share. Equity investments are
generally subject to a number of risks including the risk that
values will fluctuate as a result of changing expectations for the
economy and individual issuers, and stocks which are small to
medium size in capitalization may fluctuate more than large
capitalization stocks. For both equity and income investments,
foreign investments are subject to the risk of adverse currency
fluctuation and additional risks and expenses in comparison to
domestic investments. In comparing levels of risk among the
Portfolios that invest to some degree in equities, International
Equity Portfolio is the most volatile with its exposure to
international markets, followed by Growth Portfolio, LifeSpan
Capital Appreciation Portfolio, Total Return Portfolio, and
LifeSpan Balanced Portfolio. Fixed-income investments are
generally subject to the risk that values will fluctuate with
interest rates and inflation, with lower-rated fixed-income
investments being subject to a greater risk that the issuer will
default in its interest or principal payment obligations. In
comparing levels of risk among the fixed-income funds, LifeSpan
Diversified Income Portfolio is more volatile than Government
Securities Portfolio.
While the Manager and Subadvisers try to reduce risks by
diversifying investments, by carefully researching securities
before they are purchased and in some cases the Manager and
Subadviser may use hedging techniques, there is no guarantee of
success in achieving a Portfolio's objective. Please refer to
"Investment Risks" starting on page __ for a more complete
discussion of each Portfolio's investment risks.
How Can I Buy or Sell Shares? Shares of each Portfolio are
offered for purchase by Accounts as an investment medium for
variable life insurance policies and variable annuity contracts.
Account owners should refer to the accompanying Account Prospectus
on ho w to buy or sell shares of the Portfolios.
How Have the Portfolios Performed? Government Securities
Portfolio measures its performance by quoting their yields. All
of the Portfolios may measure their performance by quoting average
annual total return and cumulative total return, which measure
historical performance. Those returns can be compared to the
returns (over similar periods) of other funds. Of course, other
funds may have different objectives, investments, and levels of
risk. The performance of all the Portfolios can also be compared
to broad market indices, which we have done starting on page ___.
Please remember that past performance does not guarantee future
results.
Financial Highlights
The tables on the following pages present selected financial
information about the Portfolios, including per share data and
expense ratios and other data based on each Portfolio's respective
average net assets. The information for the Portfolios has been
audited by Deloitte & Touche LLP, the Company's independent
auditors, whose reports for the Company's fiscal year ended
December 31, 1996 are included in the Statement of Additional
Information. Prior to and including the year ended December 31,
1995, the financial statements of the Portfolios were audited by
other auditors. Additional information about the performance of the
Portfolios is contained in the Company's 1996 Annual Reports which
may be obtained without charge by calling or writing the Company at
the telephone or address on the back cover.
<PAGE>
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(1) 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 1.75 $ 1.51 $ 1.65 $ 1.56 $ 1.57
- ----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .07 .07 .06 .06 .07
Net realized and unrealized gain (loss) .11 .30 (.09) .20 .10
- ----------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .18 .37 (.03) .26 .17
- ----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.07) (.06) (.06) (.07)
Distributions from net realized gain (.01) (.06) (.05) (.11) (.11)
- ----------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.02) (.13) (.11) (.17) (.18)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.91 $ 1.75 $ 1.51 $ 1.65 $ 1.56
-----------------------------------------------------------
-----------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 10.14% 24.66% (1.97)%
16.28% 10.21%
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 1,122 $ 994 $ 742 $ 610 $ 402
- ----------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 1,058 $ 864(3) $ 687(3) $ 502(3) $ 345(3)
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.12% 4.48% 4.21% 3.90% 4.27%
Expenses 0.55% 0.59% 0.56% 0.60% 0.68%
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 104.3% 62.3% 88.3% 161.6% 182.1%
Average brokerage commission rate(4) $0.0641 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1991 1990 1989 1988 1987
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 1.33 $ 1.41 $ 1.27 $ 1.20 $ 1.42
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .07 .08 .09 .06 .06
Net realized and unrealized gain (loss) .32 (.07) .20 .08 .02
- --------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .39 .01 .29 .14 .08
- --------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.07) (.08) (.09) (.07) (.06)
Distributions from net realized gain (.08) (.01) (.06) -- (.24)
- --------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.15) (.09) (.15) (.07) (.30)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.57 $ 1.33 $ 1.41 $ 1.27 $ 1.20
----------------------------------------------------------
----------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 28.79% 0.50% 22.98%
11.64% 4.26%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 304 $ 229 $ 221 $ 184 $ 168
- --------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 261(3) $ 225(3) $ 204(3) $ 178(3) $ 173(3)
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.44% 5.65% 6.20% 4.93% 3.53%
Expenses 0.72% 0.78% 0.80% 0.79% 0.78%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 128.8% 109.2% 151.0% 244.7% 198.9%
Average brokerage commission rate(4) -- -- -- -- --
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
3. This information is not covered by audit opinion.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended December 31, 1996 were $1,029,361,054 and
$895,368,455, respectively.
5. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
Financial Highlights
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(1) 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of
period $2.53 $1.97 $2.08 $1.91 $1.87
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .04 .04 .03 .04 .04
Net realized and unrealized
gain (loss) .43 .71 (.04) .36 .19
- --------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .47 .75 (.01) .40 .23
- --------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.01) (.04) (.03) (.04) (.04)
Distributions from net realized gain (.01) (.15) (.07) (.19) (.15)
- --------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.02) (.19) (.10) (.23) (.19)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.98 $2.53 $1.97 $2.08 $1.91
-------------------------------------------------------------------
-------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 18.87% 38.06% (0.51)%
21.22% 12.36%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $586,222 $405,935 $230,195 $165,775 $101,215
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $494,281 $303,193(3) $198,879(3) $131,292(3)
$85,003(3)
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.63% 2.01% 1.87% 2.30% 2.19%
Expenses 0.58% 0.66% 0.67% 0.69% 0.76%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 82.5% 69.3% 97.3% 97.6% 136.1%
Average brokerage commission rate(5) $0.0697 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1991 1990 1989 1988 1987
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of
period $1.46 $1.65 $1.36 $1.22 $1.60
- ------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .04 .05 .07 .03 .04
Net realized and unrealized
gain (loss) .51 (.18) .42 .15 --
- ------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .55 (.13) .49 .18 .04
- ------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment income (.04) (.05) (.07) (.04) (.04)
Distributions from net realized gain (.10) (.01) (.13) -- (.38)
- ------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.14) (.06) (.20) (.04) (.42)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $1.87 $1.46 $1.65 $1.36 $1.22
-----------------------------------------------------------
-----------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 37.53% (7.90)% 35.81%
14.46% 0.25%
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $75,058 $50,998 $53,955 $41,434 $40,995
- -------------------------------------------------------------------------------------------------
Average net assets (in thousands) $62,282(3) $53,171(3) $48,409(3) $40,950(3)
$47,312(3)
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.16% 3.04% 4.16% 2.24% 1.97%
Expenses 0.80% 0.84% 0.87% 0.88% 0.86%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 142.9% 146.8% 174.1% 246.4% 218.0%
Average brokerage commission rate(5) -- -- -- -- --
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
3. This information is not covered by audit opinion.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended December 31, 1996 were $425,023,373 and
$361,436,894, respectively.
5. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995 1994 1993 1992(1)
- ------------------------------------------------------------------------------------------------------------------
- --
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.07 $0.95 $1.06 $1.01 $1.00
- ------------------------------------------------------------------------------------------------------------------
- --
Income (loss) from investment operations:
Net investment income .07 .06 .06 .04 .02
Net realized and unrealized gain (loss) (.05) .12 (.11) .07 .04
- ------------------------------------------------------------------------------------------------------------------
- --
Total income (loss) from investment
operations .02 .18 (.05) .11 .06
- ------------------------------------------------------------------------------------------------------------------
- --
Dividends and distributions to shareholders:
Dividends from net investment income -- (3) (.06) (.06) (.04) (.02)
Distributions from net realized gain -- -- -- (.02) (.03)
- ------------------------------------------------------------------------------------------------------------------
- --
Total dividends and distributions
to shareholders -- (.06) (.06) (.06) (.05)
- ------------------------------------------------------------------------------------------------------------------
- --
Net asset value, end of period $1.09 $1.07 $0.95 $1.06 $1.01
---------------------------------------------------------------------
---------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
- --
TOTAL RETURN, AT NET ASSET VALUE(4) 1.93% 18.91% (4.89)%
10.98% 6.61%
- ------------------------------------------------------------------------------------------------------------------
- --
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $23,236 $24,309 $18,784 $15,687
$7,634
- ------------------------------------------------------------------------------------------------------------------
- --
Average net assets (in thousands) $23,880 $23,157(5) $17,589(5) $11,421(5)
$3,780(5)
- ------------------------------------------------------------------------------------------------------------------
- --
Ratios to average net assets:
Net investment income 6.11% 6.08% 6.04% 5.13%
4.64%(6)
Expenses 0.62% 0.71% 0.85% 0.93% 1.20%(6)
- ------------------------------------------------------------------------------------------------------------------
- --
Portfolio turnover rate(7) 6.0% 54.7% 102.3% 178.2%
458.6%(6)
</TABLE>
1. For the period from May 13, 1992 (commencement of operations) to
December 31, 1992.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Less than $0.005 per share.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
5. This information is not covered by audit opinion.
6. Annualized.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases
and sales of investment securities (excluding short-term securities) for the
period ended December 31, 1996 were $425,023,373 and $361,436,894, respectively.
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995 1994 1993
1992(1)
- ----------------------------------------------------------------------------------------------------------------
- ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.15 $1.09 $1.09 $0.92
$1.00
- ----------------------------------------------------------------------------------------------------------------
- ------
Income (loss) from investment operations:
Net investment income (loss) .02 .03 (.01) .00 .01
Net realized and unrealized gain (loss) .13 .08 .03 .20 (.06)
- ----------------------------------------------------------------------------------------------------------------
- ------
Total income (loss) from investment
operations .15 .11 .02 .20 (.05)
- ----------------------------------------------------------------------------------------------------------------
- ------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.04) -- (.02) (.02)
Distributions from net realized gain -- (.01) (.02) (.01) (.01)
- ----------------------------------------------------------------------------------------------------------------
- ------
Total dividends and distributions
to shareholders (.01) (.05) (.02) (.03) (.03)
- ----------------------------------------------------------------------------------------------------------------
- ------
Net asset value, end of period $1.29 $1.15 $1.09 $1.09 $0.92
- ------------------------------------------------------------------
- ------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
- ------
TOTAL RETURN, AT NET ASSET VALUE(3) 13.26% 10.30% 1.44%
21.80%
(4.32)%
- ----------------------------------------------------------------------------------------------------------------
- ------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $62,585 $45,775 $31,603 $18,315
$10,493
- ----------------------------------------------------------------------------------------------------------------
- ------
Average net assets (in thousands) $56,893 $37,474(4) $29,133(4)
$13,328(4) $
9,973(4)
- ----------------------------------------------------------------------------------------------------------------
- ------
Ratios to average net assets:
Net investment income 0.76% 1.61% (1.85)% (0.31)%
1.63%(5)
Expenses 1.21% 1.26% 1.28% 1.50%
1.50%(5)
- ----------------------------------------------------------------------------------------------------------------
- ------
Portfolio turnover rate(6) 53.7% 85.1% 76.5% 57.4%
206.7%(5)
Average brokerage commission rate(7) $0.0019 -- -- -- --
</TABLE>
1. For the period from May 13, 1992 (commencement of operations) to December
31, 1992.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding short-
term securities) for the period ended December 31, 1996 were $44,150,822 and
$28,819,480, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.04 $1.00
- ------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .06 .02
Net realized and unrealized gain .01 .04
- ------------------------------------------------------------------------------------------------
Total income from investment
operations .07 .06
- ------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.02)
Distributions from net realized gain -- --
- ------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.02)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $1.10 $1.04
-----------------------------------------
-----------------------------------------
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 6.93% 5.69%
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,274 $21,176
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $22,854 $20,364 (4)
- ------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.84% 5.11%(5)
Expenses 1.07% 1.50%(5)
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 80.4% 41.2%(5)
Average brokerage commission rate(7) $0.0678 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$19,927,166 and $16,872,227, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.05 $1.00
- ----------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .03 .01
Net realized and unrealized gain .11 .05
- ----------------------------------------------------------------------------------------------------------
Total income from investment
operations .14 .06
- ----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.01)
- ----------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.01)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.18 $1.05
-------------------------------------------------
-------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 13.38%
6.08%
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $51,336 $35,467
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $41,847 $33,925 (4)
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.34% 3.08%(5)
Expenses 1.17% 1.50%(5)
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 69.7% 39.7%(5)
Average brokerage commission rate(7) $0.0025 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases
and sales of investment securities (excluding short-term securities) for the
period ended December 31, 1996 were $34,475,999 and $26,945,206, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.06 $1.00
- ---------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .02 .01
Net realized and unrealized gain .17 .06
- ---------------------------------------------------------------------------------------------------------
Total income from investment
operations .19 .07
- ---------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.01)
Distributions from net realized gain -- --
- ---------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.01)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.24 $1.06
-----------------------------------------------
-----------------------------------------------
- ---------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 17.97%
6.65%
- ---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $41,994 $26,768
- ---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $33,109 $25,460 (4)
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.92% 1.73%(5)
Expenses 1.30% 1.50%(5)
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 70.7% 38.7%(5)
Average brokerage commission rate(7) $0.0028 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended December 31, 1996 were $28,033,224 and $21,163,850,
respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
<PAGE>
Investment Objectives and Policies
The investment objective and the principal types of securities each
Portfolio invests in are described in this section. The investment
risks of these types of investments are discussed in the next
section, entitled "Investment Risks," followed by an explanation of
the characteristics of the types of securities and strategies each
Portfolio uses, in "Investment Techniques and Strategies." Appendix
A contains a description of the ratings categories of certain
national ratings organizations that relate to debt securities that
certain Portfolios invest in.
Total Return Portfolio. The Total Return Portfolio seeks to
maximize total investment return (including both capital
appreciation and income) by allocating its assets among stocks,
bonds (including corporate debt securities, U.S. Government and
U.S. Government-related securities) and money market instruments
according to changing market conditions.
In allocating the Portfolio's assets for investment, the
Manager uses quantitative asset allocation tools, which measure the
relative characteristics of these asset categories, in combination
with the judgment of the Manager concerning current market
dynamics. Allocating assets among different types of investments
allows the Portfolio to take advantage of opportunities in
different segments of the securities markets, but also subjects the
Portfolio to the risks of those market segments. In selecting
stocks, the Manager searches for stocks with low price-earnings
ratios (for example, below the price-earnings ratio of the S&P 500
Index). If the company then demonstrates better earnings than
market analysts expected (this is referred to as a favorable
"earnings surprise"), the company's earnings expectations and price
earnings multiple may be re-evaluated, which may cause the stock to
increase in value.
The Portfolio's debt securities are expected to have weighted
average from current date to maturity of six to twelve years. At
least 25% of the Portfolio's total assets will be invested in fixed
income senior securities. Otherwise, the Manager may allocate the
Portfolio's assets to one or more of these asset classes in amounts
that may vary from time to time, without the requirement to
allocate a fixed percentage in any particular category.
The Portfolio may invest up to 20% of its total assets in the
aggregate in debt securities and preferred stocks rated below
investment grade (commonly called "junk bonds") and unrated
securities determined by the Manager to be of comparable credit
quality. However, the Manager presently does not intend to invest
more than 5% of the Portfolio's assets in below investment grade
securities in the current year. The Portfolio will not invest in
securities rated below B at the time of purchase. Unrated debt
securities will not exceed 10% of the Portfolio's total assets.
The Portfolio may invest up to 20% of its total assets in
mortgage dollar rolls. The Portfolio may also invest up to 5% of
its total assets in inverse floating rate instruments, which are a
type of derivative security. Consistent with the foregoing
policies, the Portfolio may invest to a limited degree in
securities of foreign issuers.
Growth Portfolio. The Growth Portfolio seeks long term growth of
capital by investing primarily in common stocks with low
price-earnings ratios and better-than-anticipated earnings.
Realization of current income is a secondary consideration.
The Manager chooses investments for the Portfolio using a
quantitative investment discipline in combination with fundamental
securities analysis. A low price-earnings ratio (for example,
below the price-earnings ratio of the S&P 500 Index) is often a
characteristic of a stock which is out-of-favor in the market. When
an out-of-favor company demonstrates better earnings than what most
analysts were expecting, this is referred to as a favorable
earnings surprise. An upward revaluation of both earnings
expectations and the price-earnings multiple may result, which may
cause the company's stock price to increase in value. As stocks
with low price-earnings ratios and favorable earnings surprises are
identified, the Manager uses fundamental securities analysis to
select individual stocks for the Portfolio. When the
price-earnings ratio of a stock held by the Portfolio moves
significantly above the multiple of the overall stock market, or
the company reports a material earnings disappointment, the
Portfolio will normally sell the stock.
The Portfolio may invest the remainder of its assets (up to
10% under normal circumstances) in U.S. Government and corporate
debt obligations, including convertible bonds which may be rated as
low as B by Moody's Investors Service, Inc. ("Moody's") or Standard
and Poor's Ratings Group ("Standard & Poor's") or other rating
services. See Special Risks of Investing in Lower Grade Securities
regarding risks of investing in lower-rated Securities. Consistent
with the foregoing policies, the Portfolio may invest to a limited
degree in securities of foreign issuers, including issuers in
developing countries, which involve special risks (described
below).
International Equity Portfolio. The International Equity Portfolio
seeks to provide long-term growth of capital by investing, under
normal circumstances, at least 90% of its assets in equity
securities of companies wherever located, the primary stock market
of which is outside the United States.
The Manager employs a subadviser, Babson-Stewart Ivory
International ("Babson-Stewart" or the "Subadviser"), to invest the
Portfolio's assets. The Subadviser pursues the Portfolio's
objective by investing in equity securities of seasoned companies
which are listed on foreign stock exchanges and which the
subadviser considers to have attractive characteristics in terms of
profitability, growth and financial resources. "Seasoned" companies
are those which in the Subadviser's opinion are known for the
quality and acceptance of their products or services and for their
ability to generate profits.
The Portfolio will invest in large, intermediate and small
capitalization stocks, with no emphasis on any particular category.
As a result, investments within the Portfolio may include the lower
25% capitalization levels of a particular market's publicly-traded
securities. Stocks will be purchased on the basis of a number of
criteria, including fundamental and valuation analysis, but
investment decisions are not based on the integration of any
particular analytical disciplines. Capitalization levels are
measured relative to specific markets; thus large and intermediate
capitalization ranges vary country by country.
The Portfolio may invest up to 25% of its total assets in
securities of companies based in "emerging" countries, as defined
by the International Bank for Reconstruction and Development, the
International Finance Committee, the United Nations or its
authorities or the MSCI Emerging Markets Index. An issuer is
considered by the Portfolio to be located in an emerging country if
the issuer is organized under the laws of an emerging country; the
issuer's principal securities trading market is in an emerging
market; or at least 50% of the issuer's noncurrent assets,
capitalization, gross revenue or profit is derived (directly or
indirectly through subsidiaries) from assets or activities located
in emerging markets. The special risks of investing in securities
of issuers located in emerging countries are discussed in
"Investment Risks," below.
When the Subadviser believes that it is appropriate to do so
in order to seek the Portfolio's investment objective, the
Portfolio may invest up to 20% of its total assets in debt
securities. Those debt securities include debt securities of
foreign governments, supranational organizations and private
issuers, including bonds denominated in the European Currency Unit.
Debt investments will be selected on the basis of, among other
things, yield, credit quality, and the fundamental outlook for
currency and interest rate trends in different parts of the globe.
The Portfolio may purchase investment grade bonds, which are those
rated Baa or higher by Moody's or BBB or higher by Standard &
Poor's and unrated securities judged by the Subadviser to be of
equivalent quality. The Portfolio may also invest up to 15% of its
total assets in debt securities which are rated below investment
grade. The Portfolio currently does not intend to invest more than
5% of its assets in debt securities rated below investment grade.
These lower quality securities are commonly called "junk bonds."
For a description of the risks associated with lower quality debt
securities, see "Investment Risks," below. Changes in interest
rates will affect the market value of fixed-income investments made
by the Portfolio, as discussed in "Investment Risks," below.
The Portfolio may enter into forward contracts, which are
foreign currency exchange contracts, to manage the Portfolio's
exposure to variations in foreign exchange rates. The Portfolio
may also buy or sell futures and options contracts relating to
foreign currencies or purchase securities indexed to foreign
currencies. See "Investment Techniques and Strategies," below for
additional information.
In appropriate circumstances, such as when a direct investment
cannot be made by the Portfolio in the securities of a particular
country or when the securities of an investment company are more
liquid than the underlying portfolio securities, the Portfolio may,
consistent with the provisions of the Investment Company Act of
1940, as amended (the "Investment Company Act"), invest in the
securities of closed-end investment companies that invest in
foreign securities. Since the Portfolio's shareholders would be
subject to additional fees, including management fees, for any
Portfolio assets invested in closed-end funds, the Subadviser will
make such investments only if, in its opinion, the potential
returns justify incurring the additional expense.
International investing can help investors reduce their
overall portfolio risk through diversification. In addition,
international investing enables investors to benefit from foreign
economies that may have more favorable growth rates than the United
States economy. However, international investments, particularly
investments in developing countries, are subject to special risks.
For a description of these risks, see "Investment Risks," below.
The LifeSpan Portfolios. There are three LifeSpan Portfolios, each
of which is an asset allocation fund that seeks to achieve its
objective by allocating its assets between two broad classes of
investments stocks and bonds. The stock class includes equity
securities of all types and the bond class includes a variety of
fixed income investments. Within those broad classes are investment
components among which the Portfolio's assets are further
allocated. The three LifeSpan Portfolios are:
LifeSpan Capital Appreciation Portfolio which seeks long-term
capital appreciation (current income is not a primary
consideration);
LifeSpan Balanced Portfolio which seeks a blend of capital
appreciation and income; and
LifeSpan Diversified Income Portfolio which seeks high current
income with opportunities for capital appreciation.
Allocating assets among different types of investments allows
each Portfolio to take advantage of a greater variety of
opportunities than funds that invest in only one investment class,
but also subjects the Portfolio to the risks of those types of
investments. The general risks of stock and fixed income
investments are discussed in "Investment Risks," below.
The Manager has the ability to allocate a Portfolio's assets
within specified ranges. A Portfolio's normal allocation indicates
the benchmark for its combination of investments in each asset
class over time. As market and economic conditions change,
however, the Manager may adjust the asset mix between the stock and
bond classes within a normal asset allocation range as long as the
relative risk and return characteristics of the respective
Portfolios remain distinct and each Portfolio's investment
objective is preserved. The Manager will review normal allocations
between the stock and bond classes quarterly and, if necessary,
will rebalance the investment allocation at that time. Additional
adjustments may be made at any time if in the judgment of the
Manager an asset allocation shift of 5% or more appears warranted.
The Portfolio Components. The Manager will diversify each
LifeSpan Portfolio's stock investments among four stock components:
international stocks, value/growth stocks, growth and income stocks
and small-capitalization growth stocks ("small-cap" stocks). Each
stock component is also permitted to invest a portion of its assets
in bonds when the Manager or relevant Subadviser determines that
increased flexibility in portfolio management is desirable to
enhance the potential for appreciation or income. The Manager will
diversify a Portfolio's bond investments among three bond
components: government and corporate bonds, high yield/high risk
bonds (also called "junk bonds") and short-term bonds. There is no
requirement that the Manager allocate a Portfolio's assets among
all stock or bond components at all times. These stock and bond
components have been selected because the Manager believes that
this additional level of asset diversification will provide each
Portfolio with the potential for higher returns with lower overall
volatility. Each Portfolio's normal allocation and potential range
of allocations are shown in the chart below.
<TABLE>
<CAPTION>
Capital Diversified
Asset Classes Appreciation Balanced Income
and Components Portfolio Portfolio Portfolio
Normal Normal Normal
Allocation Range Allocation Range Allocation Range
<S> <C> <C> <C> <C> <C> <C>
Stocks 80% 70-90% 60% 50-70% 25% 15-35%
International 20% 15-25% 15% 5-20% 0% 0%
Value/Growth 20% 15-30% 15% 10-25% 0% 0%
Growth/Income 20% 15-30% 15% 10-25% 25% 15-35%
Small Cap 20% 15-25% 15% 5-20% 0% 0%
Bonds 20% 10-30% 40% 30-50% 75% 65-85%
Government/Corporate10% 5-15% 15% 10-25% 35% 30-45%
High Yield/High
Risk Bonds 10% 5-15% 15% 5-20% 15% 5-20%
Short Term Bonds 0% 0% 10% 5-20% 25% 15-30%
</TABLE>
All percentage limitations are applied at the time of purchase
of a security. The Manager may rebalance the asset allocations
quarterly to realign them in response to market conditions. Once
the Manager has determined the weighting of the stock and bond
asset classes and the components of each LifeSpan Portfolio, the
Manager or the relevant subadviser will then select the individual
securities to be included in each component.
Subadvisers. The Manager has engaged three subadvisers (each
is referred to as a "Subadviser" and together they are referred to
as the "Subadvisers") to manage a portion of the assets of the
LifeSpan Portfolios. Each Subadviser manages the portion of a
Portfolio's assets invested in the particular component assigned to
it by the Manager. The Manager has assigned the management of the
components as follows:
Subadviser Portfolio Component
Babson-Stewart International Stocks
Pilgrim Baxter & Associates Small Cap Stocks
BEA Associates High Yield/High Risk Bonds
The Manager manages the remaining components using its own
investment management personnel. See "How the Portfolios are
Managed" below for additional information.
Stock Investments. Each LifeSpan Portfolio will invest the
portion of its assets which are allocated to stock investments
among four components each of which invests principally in equity
securities. Each component differs with respect to investment
criteria and characteristics as described below.
International Component. This component seeks long-term growth
of capital primarily through a diversified portfolio of marketable
international equity securities. The investments in the
international component normally will be allocated among several
countries. In addition, up to 25% of the assets in this component
may be invested in stocks and bonds of companies based in emerging
countries. The component's assets generally will be invested in
equity securities of seasoned companies that are listed on foreign
stock exchanges and which are considered to have attractive
characteristics as to profitability, growth and financial
resources. "Seasoned" companies are those known for the quality and
acceptance of their products or services and for their ability to
generate profits. There are no issuer capitalization limits on
investments. Stocks will be selected based on a number of criteria,
including fundamental and valuation analysis, but investments are
not based on the integration of any particular analytical
disciplines. Consistent with the provisions of the Investment
Company Act, the component's assets may be invested in the
securities of closed-end investment companies that invest in
foreign securities. A portion of the international component's
investments may be held in corporate bonds and government
securities of foreign issuers and cash and short-term instruments.
The special risks of investing in foreign securities and in
emerging markets are described in "Investment Risks," below.
Value/Growth Component. This component seeks to achieve
long-term growth of capital primarily through investments in common
stocks with both low price-earnings ratios and better than
anticipated earnings. Realization of current income is not a
primary consideration. Stocks with low price-earnings ratios and
favorable earnings surprises are identified by the Manager, which
then uses fundamental securities analysis to select individual
stocks for purchase. When the price earnings ratio of a stock held
by the value/growth component moves significantly above the
multiple of the overall stock market, or the company reports a
material earnings disappointment, the Manager may consider selling
the stock. Up to 15% of the component's assets may be invested in
stocks of foreign issuers that generally have a substantial portion
of their business in the United States, and in American Depository
Receipts (ADRs) for foreign stocks. A portion of the component's
assets may be held in cash and in short-term investments.
Growth/Income Component. This component seeks to enhance the
Portfolio's total return through capital appreciation and dividend
income primarily from investments in common stocks with low
price-earnings ratios, better-than-anticipated earnings and
better-than-market-average dividend yields. Stocks with low
price-earnings ratios (for example, below the price-earnings ratio
of the S&P 500 Index), favorable earnings surprises and
above-average yields are identified by the Manager, which then uses
fundamental securities analysis to select individual stocks for
this component. When the price-earnings ratio of a stock held by
the component moves significantly above the multiple of the overall
stock market, or the company reports a material earnings
disappointment, or when the yield drops significantly below the
market yield, normally that stock will be sold. Up to 15% of the
component's assets may be invested in stocks of foreign issuers
that generally have a substantial portion of their business in the
United States, and in ADRs. A portion of the component's
investments may be held in investment grade or below investment
grade convertible securities, corporate bonds and U.S. Government
securities, cash and short-term instruments.
Small Cap Component. This component seeks long-term growth of
capital primarily through investments in stocks of companies with
relatively small market capitalization, typically between $250
million to $1.5 billion. Capitalization is the aggregate value of
a company's stock, or its price per share times the number of
shares outstanding. Current income is a secondary consideration.
When selecting individual securities for the component's portfolio,
the Subadviser seeks companies that have an outlook for strong
growth in earnings and the potential for significant capital
appreciation, particularly in industry segments that are
experiencing rapid growth. Securities will be sold when the
Subadviser believes that anticipated appreciation is no longer
probable and that alternative investments offer superior
appreciation prospects, or the risk of a decline in market price is
too great. A portion of the component's investments may also be
held in cash and short-term instruments.
Bond Investments. Each LifeSpan Portfolio will invest those
assets which are allocated to the bond class among three
components, each of which invests in an array of fixed-income
securities as described below:
Government/Corporate Component. This component seeks current
income and the potential for capital appreciation primarily through
investments in fixed-income debt securities, including investment
grade corporate debt obligations of U.S. and foreign issuers and
securities issued by the U.S. Government and its agencies and
instrumentalities or by foreign governments. Although the component
may invest in securities with maturities across the entire slope of
the yield curve, including long bonds (having maturities of 10 or
more years), intermediate notes (with maturities of 3 to 10 years)
and short term notes (with maturities of 1 to 3 years), the Manager
expects that normally the component will have an intermediate
average maturity and duration. The Manager may take into account
prepayment features when determining the maturity of an investment.
The Manager's investment strategy includes the purchase of bonds
that are underpriced relative to other debt securities having
similar risk profiles. The Manager evaluates a broad array of
factors, including maturity, creditworthiness, cash flow certainty
and interest rate volatility, and compares yields in relation to
trends in the economy, the financial and commodity markets and
prevailing interest rates. The component may also invest a portion
of its assets in cash and short-term instruments.
High Yield/High Risk Bond Component. This component seeks to
earn as high a level of current income as is consistent with the
risks associated with high yield investments. The component's
assets are invested primarily in bonds that are rated BB or lower
by Standard & Poor's or Ba or lower by Moody's or, if not rated,
that are deemed by the Subadviser to be of comparable quality to
rated securities in those categories. These are commonly referred
to as "junk bonds." This component may invest in bonds that are in
default. Bonds in default are not making interest or principal
payments on the date due. The Subadviser employs an active sector
rotational style utilizing all sectors of the high yield market,
with an emphasis on diversification to control risk. The Subadviser
typically favors higher quality companies in the non-investment
grade market, senior debt over junior debt, and secured over
unsecured investments. The Subadviser screens individual securities
for such characteristics as minimum yield and issue size, issue
liquidity and financial and operational strength. In-depth credit
research is then conducted to arrive at a core group of securities
within the high yield universe for the component. Continuous credit
monitoring and adherence to sell disciplines associated with both
price appreciation and depreciation are utilized to seek the
overall yield and price objectives of the component. The component
may also invest a portion of its assets in cash and short-term
instruments. The special risks of investing in below investment
grade securities are described in "Investment Risks," below.
Short-Term Bond Component. This component seeks a high level
of current income consistent with prudent investment risk and
preservation of capital by investing primarily in debt obligations
of U.S. and foreign issuers and securities issued by the U.S.
Government and its agencies and instrumentalities and by foreign
governments. This component invests primarily in fixed-income
securities generally maturing within five years of the date of
purchase, or in securities having prepayment or similar features
which, in the view of the Manager, give the instrument a remaining
effective maturity of up to five years. It is anticipated that the
average dollar weighted maturity of the component will generally
range between two and three years. The Manager's investment
management process incorporates analysis of an issuer's debt
service capability, financial flexibility and liquidity, as well as
the fundamental trends and the outlook for an issuer and its
industry. Credit risk management is also an important factor. The
Manager conducts credit research, and carefully selects individual
issues. The Manager attempts to broadly diversify portfolio
holdings by industry sector and issuer. The Manager believes that
determination of an issuer's attractiveness relative to alternative
issues and valuations within the marketplace are important
considerations in its investment decision-making. The component may
also invest a portion of its assets in cash and money market
securities.
Government Securities Portfolio. The Government Securities
Portfolio seeks a high level of current income with a high degree
of safety of principal by investing primarily (at least 65% of its
total assets under normal market conditions) in U.S. Government
securities and U.S. Government-related securities.
U.S. Government securities are high quality instruments issued
or guaranteed as to principal and interest by the U.S. Treasury or
by an agency or instrumentality of the U.S. Government. These may
include bills, notes and bonds of the U.S. Treasury, mortgage
participation certificates guaranteed by the Government National
Mortgage Association (Ginnie Mae Certificates), or obligations of
the Federal Home Loan Mortgage Corporation or the Federal National
Mortgage Association. U.S. Government-related securities are
obligations that are fully collateralized or otherwise secured by
U.S. Government securities. U.S. Government securities and U.S.
Government-related securities may include pools of consumer loans
or mortgages, such as collateralized mortgage obligations (CMOs).
The Portfolio's investments in privately issued CMOs will be
limited to those rated within the two highest rating categories by
a nationally recognized rating agency. CMOs are derivative
securities; for a discussion of derivative securities, see
"Investment Techniques and Strategies." The U.S. Government and
U.S. Government-related securities in which the Portfolio will
invest may have fixed or floating rates of interest.
U.S. Government and U.S. Government-related securities do not
generally involve the credit risks associated with corporate debt
securities. As a result, the Portfolio's yield is generally lower
than the yield of most general purpose fixed-income funds, which
assume certain credit risks in exchange for higher potential yield.
Like corporate debt securities, however, the value of U.S.
Government and U.S. Government-related securities, and thus the
Portfolio's net asset value, generally fluctuates inversely with
changes in interest rates. The Manager may seek to take advantage
of market developments and yield disparities by shortening average
maturity in anticipation of rising interest rates and by
lengthening average maturity in anticipation of declining interest
rates. The Portfolio may also invest up to 20% of its total assets
in mortgage dollar rolls. The Portfolio may invest up to 5% of its
total assets in inverse floating rate instruments. For additional
information, see "Investment Techniques and Strategies," below.
Under normal circumstances, the Portfolio may invest the remainder
of its assets (up to 35%) in investment grade debt obligations of
private issuers.
Although the Government Securities Portfolio invests primarily
in U.S. Government and U.S. Government related securities which
generally have less credit risk than other securities, an
investment in the Government Securities Portfolio is not insured or
guaranteed.
Can a Portfolio's Investment Objective and Policies Change? Each
Portfolio has an investment objective, described above, as well as
investment policies it follows to try to achieve its objective.
Additionally, a Portfolio uses certain investment techniques and
strategies in carrying out those investment policies. A Portfolio's
investment policies and practices are not "fundamental" unless this
Prospectus or the Statement of Additional Information says that a
particular policy is "fundamental." Each Portfolio's investment
objective is not a fundamental policy. Portfolio shareholders will
be given 30 days' advance written notice of a change to a
Portfolio's investment objective.
Fundamental policies are those that cannot be changed without
the approval of a "majority" of a Portfolio's outstanding voting
shares. The term "majority" is defined in the Investment Company
Act to be a particular percentage of outstanding voting shares (and
this term is explained in the Statement of Additional Information).
The Company's Board of Directors may change a Portfolio's
non-fundamental policies without shareholder approval, although
significant changes will be described in amendments to this
Prospectus.
Portfolio Turnover. A change in the securities held by a
Portfolio is known as "portfolio turnover." Government Securities
Portfolio may take advantage of short-term differentials in yields
when short-term trading is consistent with its objective of seeking
income. While short-term trading increases portfolio turnover and
may increase the Portfolios' transaction costs, the Portfolios
incur little or no brokerage costs for U.S. Government securities.
The "Financial Highlights," above, show the Portfolios' portfolio
turnover rates during past fiscal years. High portfolio turnover
may affect the ability of a Portfolio to qualify as a "regulated
investment company" under the Internal Revenue Code and to avoid
being taxed on amounts distributed as dividends and capital gains
to shareholders. Each Portfolio qualified in its fiscal period
ended December 31, 1996 and intends to do so in the current and
coming fiscal years.
Investment Risks
All investments carry risks to some degree, whether they are risks
that market prices of the investment will fluctuate (this is known
as "market risk"), or that the underlying issuer will experience
financial difficulties and may default on its obligation under a
fixed income investment to pay interest and repay principal (this
is referred to as "credit risk."). These general investment risks,
and the special risks of certain types of investments that some of
the Portfolios may hold are described below. They affect the value
of a Portfolio's investments, its investment performance, and the
price of its shares. These risks collectively form the risk profile
of a particular Portfolio. Certain of the Portfolios are more
aggressive than others, and therefore entail more risk.
While the Manager (and Subadvisers in the applicable
Portfolios) try to reduce risks by diversifying investments, by
carefully researching securities before they are purchased for a
Portfolio, and in some cases by using hedging techniques, there is
no assurance that the Portfolios will achieve their investment
objectives, and when shares of a Portfolio are redeemed, they may
be worth more or less than their original cost.
Stock Investment Risks. At times, the stock markets can be
volatile, and stock prices can change substantially. This market
risk will affect a Portfolio's net asset values per share, which
will fluctuate as the values of the portfolio securities change.
Not all stock prices change uniformly or at the same time, not all
stock markets move in the same direction at the same time, and
other factors can affect a particular stock's prices (for example,
poor earnings reports by an issuer, loss of major customers, major
litigation against an issuer, or changes in government regulations
affecting an industry). Not all of these factors can be predicted.
Each Portfolio attempts to limit market risks by diversifying its
investments, that is, by not holding a substantial amount of stock
of any one company and by not investing too great a percentage of
a Portfolio's assets in any one company. Small cap stocks may be
more volatile than those of more highly capitalized issuers.
Risks of Debt Securities. Debt securities are subject to changes
in their value due to changes in prevailing interest rates. When
prevailing interest rates fall, the values of already-issued debt
securities generally rise. When interest rates rise, the values of
already-issued debt securities generally decline. The magnitude of
these fluctuations will often be greater for longer-term debt
securities than shorter-term debt securities. Changes in the value
of securities held by a Portfolio mean that the Portfolio's share
prices can go up or down when interest rates change, because of the
effect of the change on the value of the Portfolio's investments in
debt securities. Debt securities are also subject to credit risks.
Credit risk relates to the ability of the issuer of a debt security
to make interest or principal payments on the security as they
become due. Generally, higher-yielding, lower-rated bonds are
subject to greater credit risk than higher-rated bonds. See
"Special Risks of Investing in Lower-Grade Securities," below.
Special Risks of Investing in Lower-Grade Securities. Each
Portfolio except Government Securities Portfolio can invest in
high-yield, below investment grade debt securities (including both
rated and unrated securities). These "lower-grade" securities are
commonly known as "junk bonds." They generally offer higher income
potential than investment grade securities. Lower-grade securities
have a rating below BBB by Standard & Poor's or Baa by Moody's or
similar ratings by other domestic or foreign rating organizations,
or they are not rated by a nationally-recognized rating
organization, but the Manager judges them to be comparable to
lower-rated securities. Total Return Portfolio and Growth
Portfolio may not invest in lower-rated securities rated below B by
Moody's or Standard & Poor's or other rating services. Each of
those Portfolios may retain securities whose ratings fall below B
after purchase unless and until the Manager determines that
disposing of the securities is in the best interests of the
respective Portfolio. Each LifeSpan Portfolio may invest in
securities rated as low as D by Standard & Poor's or C by Moody's
or other rating services. Appendix A to this Prospectus describes
the rating categories of Moody's and Standard & Poor's.
All corporate debt securities (whether foreign or domestic)
are subject to some degree of credit risk. High yield, lower-grade
securities, whether rated or unrated, often have speculative
characteristics and have special risks that make them riskier
investments than investment grade securities. They may be subject
to greater market fluctuations and risk of loss of income and
principal than lower yielding, investment grade securities. There
may be less of a market for them and therefore they may be harder
to sell at an acceptable price. There is a relatively greater
possibility that the issuer's earnings may be insufficient to make
the payments of interest due on the bonds. The issuer's low
creditworthiness may increase the potential for its insolvency.
For foreign lower-grade debt securities, these risks are in
addition to the risks of investing in foreign securities, described
below. Further, a decline in the high-yield bond market is likely
during economic downturn. An economic downturn or an increase in
interest rates could severely disrupt the market for high-yield
securities and adversely affect the value of outstanding securities
and the ability of issuers to repay principal and interest. These
risks mean that a Portfolio may not achieve the expected income
from lower-grade securities, and that a Portfolio's net asset value
per share may be affected by declines in value of these securities.
Foreign Securities Have Special Risks. There are special risks
in investing in foreign securities and in securities issued by
companies and governments located in emerging market countries.
Because each Portfolio (other than Government Securities Portfolio)
may purchase securities denominated in foreign currencies or traded
primarily in foreign markets, a change in the value of a foreign
currency against the U.S. dollar will result in a change in the
U.S. dollar value of those foreign securities. Foreign issuers are
not required to use generally-accepted accounting principles that
apply to U.S. issuers. If foreign securities are not registered for
sale in the U.S. under U.S. securities laws, the issuer does not
have to comply with the disclosure requirements that U.S. companies
are subject to. The value of foreign investments may be affected by
other factors, including exchange control regulations,
expropriation or nationalization of a company's assets, foreign
taxes, delays in settlement of transactions, changes in
governmental, economic or monetary policy in the U.S. or abroad, or
other political and economic factors.
In addition, it is generally more difficult to obtain court
judgements outside the U.S. if a Portfolio were to sue a foreign
issuer or broker. Additional costs may be incurred because foreign
brokerage commissions are generally higher than U.S. rates, and
there are additional custodial costs associated with holding
securities abroad.
Special Risks of Investing in Emerging Market Countries. The
Portfolios' definition of "emerging countries" includes any country
that is defined as an emerging or developing economy by the
International Bank for Reconstruction and Development, the
International Finance Committee, the United Nations or its
authorities, or the MSCI Emerging Markets Index. Investments in
emerging market countries may involve risks in addition to those
that generally apply to investments in foreign securities.
Securities issued by emerging market countries and by companies
located in those countries may be subject to extended settlement
periods, so that a Portfolio might not receive principal and/or
income on a timely basis and its net asset values could be
affected. Emerging market countries may have smaller, less
well-developed markets and exchanges; there may be a lack of
liquidity for emerging market securities. Interest rates and
foreign currency exchange rates may be more volatile than in more
developed markets. Sovereign limitations on foreign investments may
be more likely to be imposed. There may be significant balance of
payment deficits; and their economies and markets may respond in a
more volatile manner to economic changes than those of developed
countries. More information about the risks and potential rewards
of investing in foreign securities is contained in the Statement of
Additional Information.
Hedging Instruments can be volatile investments and may involve
special risks. The use of hedging instruments requires special
skills and knowledge of investment techniques that are different
from what is required for normal portfolio management. If the
Manager or a Subadviser uses a hedging instrument at the wrong time
or judges market conditions incorrectly, hedging strategies may
reduce a Portfolio's return. A Portfolio could also experience
losses if the prices of its futures and options positions were not
correlated with its other investments or if it could not close out
a position because of an illiquid market for the future or option.
Options trading involves the payment of premiums, and options,
futures and forward contracts are subject to special tax rules that
may affect the amount, timing and character of a Portfolio's income
and distributions. There are also special risks in particular
hedging strategies. For example, if a covered call written by a
Portfolio is exercised on an investment that has increased in
value, the Portfolio will be required to sell the investment at the
call price and will not be able to realize any profit if the
investment has increased in value above the call price. In writing
puts, there is a risk that a Portfolio may be required to buy the
underlying security at a disadvantageous price. The use of Forward
Contracts may reduce the gain that would otherwise result from a
change in the relationship between the U.S. dollar and a foreign
currency. Interest rate swaps are subject to the risk that the
other party will fail to meet its obligations (or that the
underlying issuer will fail to pay on time), as well as interest
rate risks. A Portfolio could be obligated to pay more under its
swap agreements than it receives under them, as a result of
interest rate changes. These risks are described in greater detail
in the Statement of Additional Information.
There are special risks in investing in derivative
investments. The Portfolios may invest in different types of
derivatives. In general, a derivative investment is a specially
designed investment whose performance is linked to the performance
of another investment or security, such as an option, future,
index, currency or commodity. The company issuing the instrument
may fail to pay the amount due on the maturity of the instrument.
Also, the underlying investment or security on which the derivative
is based, and the derivative itself, might not perform the way the
Manager or relevant Subadviser expected it to perform. Markets,
underlying securities and indices may move in a direction not
anticipated by the Manager or relevant Subadviser. Performance of
derivative investments may also be influenced by interest rate and
stock market changes in the U.S. and abroad. All of this can mean
that a Portfolio will realize less principal or income from the
investment than expected. Certain derivative investments held by
a Portfolio may be illiquid. Please refer to "Illiquid and
Restricted Securities."
Investment Techniques and Strategies
The Portfolios may use the investment techniques and strategies
described below, each of which involves certain risks. Not all of
the Portfolios use all of these techniques and strategies, and each
section indicates which Portfolios use a particular technique or
strategy. The Statement of Additional Information contains more
detailed information about these practices, including limitations
on their use that may help to reduce some of the risks.
Foreign Securities. (All Portfolios). Foreign securities
offer special investment opportunities but also entail special
risks, described above. Neither the Growth Portfolio nor the Total
Return Portfolio may invest more than 10% of its total assets in
foreign securities, except the following securities, in which such
Portfolios may invest up to 25% of their total assets: foreign
equity and debt securities (i) issued, assumed or guaranteed by
foreign governments or their political subdivisions or
instrumentalities, (ii) assumed or guaranteed by domestic issuers,
including Eurodollar securities, and (iii) issued, assumed or
guaranteed by foreign issuers having a class of securities listed
for trading on The New York Stock Exchange.
ADRs, EDRs and GDRs. (All Portfolios except Government
Securities Portfolio). ADRs are receipts issued by a U.S. bank or
trust company which evidence ownership of underlying securities of
foreign corporations. ADRs are traded on domestic exchanges or in
the U.S. over-the-counter market and, generally, are in registered
form. To the extent a Portfolio acquires ADRs through banks which
do not have a contractual relationship with the foreign issuer of
the security underlying the ADR to issue and service such ADRs,
there may be an increased possibility that the Portfolio would not
become aware of and be able to respond in a timely manner to
corporate actions such as stock splits or rights offerings
involving the foreign issuer. In addition, the lack of information
may result in inefficiencies in the valuation of such instruments.
EDRs and GDRs are receipts evidencing an arrangement with a
non-U.S. bank similar to that for ADRs and are designed for use in
non-U.S. securities markets. EDRs and GDRs are not necessarily
quoted in the same currency as the underlying security.
Convertible Securities (All Portfolios Except Government
Securities Portfolio ). Convertible securities are bonds, preferred
stocks and other securities that normally pay a fixed rate of
interest or dividend and give the owner the option to convert the
security into common stock. While the value of convertible
securities depends in part on interest rate changes and the credit
quality of the issuer, the price will also change based on the
price of the underlying stock. While convertible securities
generally have less potential for gain than common stock, their
income provides a cushion against the stock price's declines. They
generally pay less income than non-convertible bonds. The Manager
generally analyzes these investments from the perspective of the
growth potential of the underlying stock and treats them as "equity
substitutes."
Debt Securities. Each Portfolio may purchase a variety of debt
securities. Debt securities include corporate debt obligations,
U.S. Government securities, mortgage-backed and asset-backed
securities, adjustable rate securities, "stripped" securities,
custodial receipts for Treasury certificates, zero coupon bonds,
equipment trust certificates, loan participation notes, structured
notes and money market instruments. The issuer of a debt security
normally pays the investor a fixed or variable rate of interest
and must repay the amount borrowed at maturity. Debt securities
have varying degrees of credit quality and respond differently to
changes in interest rates.
Some debt securities, such as zero coupon bonds, do not pay
interest but are purchased at a discount from their face value.
However, they accrue income for tax and accounting purposes, which
must be distributed to shareholders. Because no cash is received by
a Portfolio at such accrual periods, the Portfolio may be required
to liquidate other securities to meet distribution requirements.
U.S. Government Securities. (All Portfolios). U.S. Government
Securities include debt securities issued by the U.S. Government,
or its agencies and instrumentalities. Certain U.S. Government
Securities, including U.S. Treasury bills, notes and bonds, and
mortgage participation certificates guaranteed by the Government
National Mortgage Association ("GNMA") are supported by the full
faith and credit of the U.S. Government, which in general terms
means that the U.S. Treasury stands behind the obligation to pay
principal and interest.
GNMA certificates are one type of mortgage-related U.S.
Government Securities in which a Portfolio may invest. Other
mortgage-related U.S. Government Securities the Portfolios invest
in that are issued or guaranteed by federal agencies or
government-sponsored entities are not supported by the full faith
and credit of the U.S. Government. Those securities include
obligations supported by the right of the issuer to borrow from the
U.S. Treasury, such as obligations of Federal Home Loan Mortgage
Corporation ("FHLMC"), obligations supported only by the credit of
the instrumentality, such as Federal National Mortgage Association
("FNMA") or the Student Loan Marketing Association and obligations
supported by the discretionary authority of the U.S. Government to
repurchase certain obligations of U.S. Government agencies or
instrumentalities such as the Federal Land Banks and the Federal
Home Loan Banks. Certain mortgage-backed securities, whether issued
by the U.S. Government or by private issuers, "pass-through" to
investors the interest and principal payments generated by a pool
of mortgages assembled for sale by government agencies.
Pass-through mortgage-backed securities entail the risk that
principal may be repaid at any time because of prepayments on the
underlying mortgages. That may result in greater price and yield
volatility than traditional fixed-income securities that have a
fixed maturity and interest rate. The Growth Portfolio and
Interantional Equity Portfolio may not purchase mortgage-backed
securities.
The value of U.S. Government Securities will fluctuate until
they mature depending on prevailing interest rates. Because the
yields on U.S. Government Securities are generally lower than on
corporate debt securities, when a Portfolio holds U.S. Government
Securities it may attempt to increase the income it can earn from
them by writing covered call options against them, when market
conditions are appropriate. Writing covered calls is explained
below, under "Hedging."
Collateralized Mortgage Obligations. (All Portfolios except
Growth Portfolio and International Equity Portfolio).
Collateralized mortgage obligations ("CMOs") generally are
obligations fully collateralized by a portfolio of mortgages or
mortgage-related securities. Payments of the interest and principal
generated by the pool of mortgages relating to the CMOs are passed
through to the holders as the payments are received. CMOs are
issued with a variety of classes or series which have different
maturities. Certain CMOs may be more volatile and less liquid than
other types of mortgage-related securities, because of the
possibility of the prepayment of principal due to prepayments on
the underlying mortgage loans.
Certain CMOs are "stripped." That means that the security is
divided into two parts, one of which receives some or all of the
principal payments (and is known as a "principal-only" or "P/O"
security) and the other which receives some or all of the interest
(and is known as an "interest-only" or "I/O" security). P/Os and
I/Os are generally referred to as "derivative investments,"
discussed further below. The yield to maturity on the class that
receives only interest is extremely sensitive to the rate of
payment of the principal on the underlying mortgages. Principal
prepayments increase that sensitivity. Stripped securities that pay
"interest only" are therefore subject to greater price volatility
when interest rates change, and they have the additional risk that
if the underlying mortgages are prepaid, a Portfolio will lose the
anticipated cash flow from the interest on the prepaid mortgages.
That risk is increased when general interest rates fall, and in
times of rapidly falling interest rates, a Portfolio might receive
back less than its investment. The value of "principal only"
securities generally increases as interest rates decline and
prepayment rates rise. The price of these securities is typically
more volatile than that of coupon-bearing bonds of the same
maturity.
Private-issuer stripped securities are generally purchased and
sold by institutional investors through investment banking firms.
At present, established trading markets have not yet developed for
these securities. Therefore, most private-issuer stripped
securities may be deemed "illiquid." If a Portfolio holds illiquid
stripped securities, the amount it can hold will be subject to the
Portfolio's investment policy limiting investments in illiquid
securities to 15% of the Portfolio's net assets.
Asset-backed Securities. (All Portfolios except Growth
Portfolio and International Equity Portfolio). Asset-backed
securities represent interests in pools of consumer loans and other
trade receivables, similar to mortgage-backed securities. They are
issued by trusts and special purpose corporations. They are backed
by a pool of assets, such as credit card or auto loan receivables,
which are the obligations of a number of different parties. The
income from the underlying pool is passed through to holders, such
as one of the Portfolios. These securities may be supported by a
credit enhancement, such as a letter of credit, a guarantee or a
preference right. However, the extent of the credit enhancement may
be different for different securities and generally applies to only
a fraction of the security's value. These securities present
special risks. For example, in the case of credit card receivables,
the issuer of the security may have no security interest in the
related collateral.
Inverse Floating Rate Instruments. (All Portfolios except
Growth Portfolio and International Equity Portfolio). Inverse
floating rate debt instruments ("inverse floaters") include
leveraged inverse floaters and inverse floating rate
mortgage-backed securities, such as inverse floating rate "interest
only" stripped mortgage-backed securities. The interest rate on
inverse floaters resets in the opposite direction from the market
rate of interest to which the inverse floater is indexed. An
inverse floater may be considered to be leveraged to the extent
that its interest rate varies by a magnitude that exceeds the
magnitude of the change in the index rate of interest. The higher
degree of leverage inherent in inverse floaters is associated with
greater volatility in their market values.
Mortgage Dollar Rolls. (Government Securities Portfolio and
Total Return Portfolio only). Certain Portfolios may invest up to
20% of their total assets in mortgage dollar rolls. In a mortgage
dollar roll the Portfolio sells mortgage-backed securities for
delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity)
securities on a specified future date. During the roll period, the
Portfolio forgoes principal and interest paid on the
mortgage-backed securities. The Portfolio is compensated by the
difference between the current sales price and the lower forward
price for the future purchase (often referred to as the "drop") as
well as by the interest earned on the cash proceeds of the initial
sale. A "covered roll" is a specific type of dollar roll for which
there is an offsetting cash position or a cash equivalent security
position which matures on or before the forward settlement date of
the dollar roll transaction. All rolls entered into by a Portfolio
will be covered rolls. Covered rolls are not treated as a borrowing
or other senior security and are excluded from the calculation of
a Portfolio's borrowings and other senior securities. A Portfolio
is also permitted to purchase mortgage-backed securities and to
sell such securities without regard to the length of time held in
separate transactions that do not constitute dollar rolls. For
financial reporting and tax purposes, the Portfolios treat mortgage
rolls as two separate transactions: one involving the purchase of
securities and a separate transaction involving a sale. The
Portfolios do not currently intend to enter into mortgage dollar
roll transactions that are accounted for as a financing.
Structured Notes (All Portfolios except International Equity
Portfolio and Growth Portfolio) A structured note is a debt
security having an interest rate or principal repayment requirement
based on the performance of a benchmark asset or market, such as
stock prices, currency exchange rates and commodity prices. They
provide exposure to the benchmark market while fixing the maximum
loss if the market does not perform as expected. Depending on the
terms of the note, a Portfolio could forego all or part of the
interest and principal that would be payable on a comparable
conventional note, and the Portfolio's loss could not exceed that
amount.
Eurodollar and Yankee Dollar Bank Obligations. (All Portfolios
except Government Securities Portfolio). The Portfolios may also
invest in obligations of foreign branches of U.S. banks referred to
as Eurodollar obligations and U.S. branches of foreign banks
(Yankee dollars) as well as foreign branches of foreign banks.
These investments involve risks that are different from investment
in securities of U.S. banks.
Short-term Debt Securities. (All Portfolios). Each Portfolio
may invest in high quality, short-term money market instruments
such as U.S. Treasury and agency obligations; commercial paper
(short-term, unsecured, negotiable promissory notes of a domestic
or foreign company); short-term debt obligations of corporate
issuers; bank participation certificates; and certificates of
deposit and bankers' acceptances (time drafts drawn on commercial
banks usually in connection with international transactions) of
banks and savings and loan associations. When the Manager believes
it appropriate for temporary defensive purposes or for liquidity
purposes, each Portfolio may hold cash or invest without limit in
money market instruments.
Warrants and Rights. (All Portfolios except Government
Securities Portfolio). Warrants are options to purchase stock at
set prices that are valid for a limited period of time. Rights are
similar to warrants but normally have a short duration and are
distributed directly by the issuer to its shareholders. A Portfolio
may invest up to 5% of its total assets in warrants or rights. That
5% limitation does not apply to warrants a Portfolio has acquired
as part of units with other securities or that are attached to
other securities. No more than 2% of a Portfolio's total assets may
be invested in warrants that are not listed on either The New York
Stock Exchange or The American Stock Exchange.
Small, Unseasoned Companies. (LifeSpan Portfolios only). Each
LifeSpan Portfolio may invest no more than 5% of its total assets
in securities of small, unseasoned companies. These are companies
that have been in operation less than three years, including the
operations of any predecessors. Securities of these companies may
have limited liquidity (which means that a Portfolio may have
difficulty selling them at an acceptable price when it wants to)
and the price of these securities may be volatile.
Loans of Portfolio Securities. (All Portfolios). To attempt
to increase its income or raise cash for liquidity purposes, each
Portfolio may lend its portfolio securities, in transactions other
than repurchase agreements, to brokers, dealers and other financial
institutions. A Portfolio must receive collateral for a loan. As a
matter of non-fundamental operating policy, the Manager limits such
loans to 10% of the Portfolio's total assets, and such loans are
subject to other conditions described in the Statement of
Additional Information.
"When-Issued" and Delayed Delivery Transactions. (All
Portfolios). Each Portfolio may purchase securities on a
"when-issued" basis and may purchase or sell securities on a
"delayed delivery" basis. These terms refer to securities that have
been created and for which a market exists, but which are not
available for immediate delivery. There may be a risk of loss to a
Portfolio if the value of the security declines prior to the
settlement date.
Repurchase Agreements. (All Portfolios). Each Portfolio may
enter into repurchase agreements. In a repurchase transaction, a
Portfolio buys a security and simultaneously sells it to the vendor
for delivery at a future date. Repurchase agreements must be fully
collateralized. However, if the vendor fails to pay the resale
price on the delivery date, a Portfolio may experience costs in
disposing of the collateral and may experience losses if there is
any delay in doing so.
Illiquid and Restricted Securities. (All Portfolios). Under
the policies established by the Portfolios' Board of Directors, the
Manager determines the liquidity of certain of the Portfolios'
investments. Investments may be illiquid because of the absence of
an active trading market, making it difficult to value them or
dispose of them promptly at an acceptable price. A restricted
security is one that has a contractual restriction on its resale or
which cannot be sold publicly until it is registered under the
Securities Act of 1933. A LifeSpan Portfolio will not invest more
than 15% of its net assets in illiquid securities (including
restricted securities that are illiquid). The LifeSpan Portfolios
will not invest more than 15% of their assets in restricted
securities, including those that are eligible for resale to
qualified institutional purchasers. The remaining Portfolios will
not invest more than 15% of their net assets in illiquid or
restricted securities (excluding restricted securities eligible for
resale to qualified institutional investors). The Manager monitors
holdings of illiquid securities on an on going basis and at times
the Fund may be required to sell some holdings to maintain adequate
liquidity.
Hedging. (All Portfolios). All Portfolios may write (sell)
and Government Securities Portfolio and International Equity
Portfolio may also purchase, exchange traded covered call options
(the LifeSpan Portfolios are not limited to purchasing exchange
traded options) on securities, securities indices and foreign
currencies, in each case as a hedge against decreases in prices of
existing portfolio securities or increases in prices of securities
whose purchase is anticipated. The International Equity Portfolio
and the international component of the LifeSpan Portfolios may
purchase options on currency in the over-the-counter ("OTC")
markets. The Portfolios may use covered call options for
non-hedging purposes as described below.
Each LifeSpan Portfolio may not, as a non-fundamental policy,
write covered call or put options with respect to more than 25% of
the value of their respective total assets, invest more than 25% of
its total assets in protective put options or invest more than 5%
of its total assets in puts, calls, spreads or straddles, or any
combination thereof, other than protective put options. The
aggregate value of premiums paid on all options, other than
protective put options, held by a LifeSpan Portfolio at any time
will not exceed 20% of that Portfolio's total assets.
A Portfolio may, subject to its investment policies, sell or
purchase covered call options and buy and sell futures and forward
contracts for a number of purposes. It may do so to try to manage
its exposure to the possibility that the prices of its portfolio
securities may decline, or to establish a position in the
securities market as a temporary substitute for purchasing
individual securities. It may do so to try to manage its exposure
to changing interest rates. Some of these strategies, such as
selling futures and writing covered calls, hedge a Portfolio's
portfolio against price fluctuations.
Other hedging strategies, such as buying futures, tend to
increase a Portfolio's exposure to the securities market. Forward
contracts are used to try to manage foreign currency risks on a
Portfolio's foreign investments. Foreign currency options are used
to try to protect against declines in the dollar value of foreign
securities a Portfolio owns, or to protect against an increase in
the dollar cost of buying foreign securities. Writing covered call
options may also provide income to a Portfolio for liquidity
purposes or may be for defensive reasons, or to raise cash to
distribute to shareholders. Hedging strategies entail special
risks, described in "Investment Risks," above.
Futures. To hedge against changes in interest rates, securities
prices or currency exchange rates, each Portfolio may, subject to
its investment objectives and policies, purchase and sell various
kinds of futures contracts and International Equity Portfolio may
purchase and write call and put options on any futures contracts.
A Portfolio may also enter into closing purchase and sale
transactions with respect to these contracts and options. Futures
contracts may be based on various securities (such as U.S.
Government securities), securities indices, foreign currencies and
other financial instruments and indices.
The Growth Portfolio, International Equity Portfolio,
Government Securities Portfolio and Total Return Portfolio may
purchase and sell futures contracts on stock indices and sell such
futures. The Total Return Portfolio may purchase and sell interest
rate futures and sell options on such futures. In addition, each
Portfolio that may invest in securities that are denominated in
foreign currency may purchase and sell futures on currencies. The
International Equity Portfolio and the LifeSpan Portfolios may
purchase and sell, options on such futures. A Portfolio will engage
in futures and related options transactions only for bona fide
hedging and non-hedging purposes as permitted in regulations of the
Commodity Futures Trading Commission. No Portfolio will enter into
futures contracts or options thereon for non-hedging purposes if,
immediately thereafter, the aggregate initial margin and premiums
required to establish non-hedging positions in futures contracts
and options on futures will exceed 5 percent of the net asset value
of the Portfolio's portfolio, after taking into account unrealized
profits and losses on any such positions and excluding the amount
by which such options were in-the-money at the time of purchase.
Covered Call Options. A Portfolio may write (that is, sell) call
options on securities, indices and foreign currencies for hedging
or non-hedging purposes and write call options on Futures for
hedging purposes but only if they are "covered." This means a
Portfolio owns the investment on which the call was written. Calls
on Futures must be covered by securities or other liquid assets a
Portfolio owns and segregates to enable it to satisfy its
obligations if the call is exercised. When a Portfolio writes a
call, it receives cash (called a premium). The call gives the buyer
the ability to buy the investment on which the call was written
from a Portfolio at the call price during the period in which the
call may be exercised. If the value of the investment does not rise
above the call price, it is likely that the call will lapse without
being exercised, while the Portfolio keeps the cash premium (and
the investment). After a Portfolio writes a call, not more than 20%
of the value of its total assets may be subject to calls.
A Portfolio may sell covered call options that are traded on
U.S. or foreign securities or commodity exchanges or which are
issued by the Options Clearing Corporation. In the case of foreign
currency options, they may be quoted by major recognized dealers in
those options. The International Equity Portfolio and the
international component of the respective LifeSpan Portfolios may
purchase options on currency in the over-the-counter markets.
Forward Contracts. (All Portfolios). Forward Contracts are foreign
currency exchange contracts. They are used to buy or sell foreign
currency for future delivery at a fixed price. A Portfolio uses
them to try to "lock in" the U.S. dollar price of a security
denominated in a foreign currency that the Portfolio has purchased
or sold, or to protect against possible losses from changes in the
relative value of the U.S. dollar and a foreign currency. A
Portfolio may also use "cross hedging," where the Portfolio hedges
against changes in currencies other than the currency in which a
security it holds is denominated. No Portfolio will speculate in
foreign exchange.
Interest Rate Swaps. (Government Securities Portfolio and LifeSpan
Portfolios only). Government Securities Portfolio and LifeSpan
Portfolios may enter into interest rate swaps both for hedging and
to seek to increase total return. In an interest rate swap, the
Portfolio and another party exchange their right to receive, or
their obligation to pay, interest on a security. For example, they
may swap a right to receive floating rate interest payments for
fixed rate payments. The Portfolio enters into swaps only on a net
basis, which means the two payment streams are netted out, with the
Portfolio receiving or paying, as the case may be, only the net
amount of the two payments. The Portfolio will segregate liquid
assets of any kind (such as cash or U.S. Government securities) to
cover any amounts it could owe under swaps that exceed the amounts
it is entitled to receive, and it will adjust that amount daily, as
needed. Each Portfolio will not invest more than 25% of its assets
in interest rate swap transactions and only on securities it owns.
Derivative Investments. A Portfolio may not purchase or sell
physical commodities; however, a Portfolio may purchase and sell
foreign currency in hedging transactions. The restriction against
purchasing commodities shall not prevent a Portfolio from buying or
selling futures contracts or from investing in securities or other
instruments backed by physical commodities.
Derivative investments may be used by a Portfolio in some
cases for hedging purposes and in other cases to seek income. In
the broadest sense, exchange-traded options and futures contracts
(discussed in "Hedging," above) may be considered derivative
investments, and other examples of derivatives are CMOs, stripped
securities, asset-backed securities, structured notes and floating
interest rate securities. Some of the special risks of derivatives
are described in "Investment Risks," above.
Index-linked or commodity-linked notes are debt securities of
companies that call for interest payments and/or payment on the
maturity of the note in different terms than the typical note where
the borrower agrees to pay a fixed sum on the maturity of the note.
Principal and/or interest payments on an index-linked note depend
on the performance of one or more market indices, such as the S&P
500 Index or a weighted index of commodity futures, such as crude
oil, gasoline and natural gas. A Portfolio may invest in debt
exchangeable for common stock of an issuer or equity-linked debt
securities of an issuer. At maturity, the principal amount of the
debt security is exchanged for common stock of the issuer or is
payable in an amount based on the issuer's common stock price at
the time of maturity. In either case there is a risk that the
amount payable at maturity will be less than the expected principal
amount of the debt.
Temporary Defensive Investments. When stock or bond market prices
are falling or in other unusual economic or business circumstances,
each Portfolio may invest substantially all of its assets in cash
equivalents, cash, or short-term money market instruments for
temporary defensive purposes.
Other Investment Restrictions. The Portfolios have other investment
restrictions which are "fundamental" policies. A Portfolio cannot
deviate from its other fundamental policies described in
"Investment Objectives and Policies" and "Other Investment
Techniques and Strategies" in the Statement of Additional
Information.
Each Portfolio, other than the LifeSpan Portfolios, may not:
Borrow amounts in excess of 10% of the Portfolio's total
assets, taken at market value at the time of the borrowing, and
then only from banks as a temporary measure for extraordinary or
emergency purposes, or make investments in portfolio securities
while such outstanding borrowings exceed 5% of the Portfolio's
total assets.
(a) Invest more than 5% of the Portfolio's total assets
(taken at market value at the time of each investment) in the
securities (other than U.S. Government agency securities) of any
one issuer (including repurchase agreements with any one bank); and
(b) purchase more than either (i) 10% of the principal amount of
the outstanding debt securities of an issuer, or (ii) 10% of the
outstanding voting securities of an issuer, except that such
restrictions shall not apply to securities issued or guaranteed by
the U.S. Government or its agencies, bank money instruments or bank
repurchase agreements. (This restriction does not apply to the
Government Securities Portfolio.)
Invest more than 25% of its assets in securities of issuers
in any single industry, provided that this limitation shall not
apply to obligations issued or guaranteed by the U.S. Government,
its agencies or instrumentalities. For the purpose of this
restriction, each utility that provides a separate service (e.g.,
gas, gas transmission, electric or telephone) shall be considered
a separate industry. This test shall be applied on a pro forma
basis using the market value of all assets immediately prior to
making any investment. (This restriction does not apply to the
International Equity Portfolio or the Government Securities
Portfolio). (Each Portfolio subject to this restriction has
undertaken to apply it to 25% or more of its assets.)
Each LifeSpan Portfolio may not:
Borrow money, except from banks for temporary purposes in
amounts not in excess of 331 3% of the value of its assets.
Borrowings may also be made for liquidity purposes to satisfy
redemption requests when liquidation of portfolio securities is
considered inconvenient or disadvantageous. However, a Portfolio
may enter into futures contracts, options on futures contracts,
securities or indices and when-issued and delayed delivery
transactions.
With respect to 75% of its total assets, purchase any
securities (other than U.S. Government Securities) that would cause
more than 5% of a Portfolio's total assets to be invested in
securities of a single issuer, or purchase more than 10% of the
outstanding voting securities of an issuer.
Invest more than 25% of its assets in securities of
issuers in any single industry, provided that this limitation shall
not apply to obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities. For the purpose of
this restriction, each utility that provides a separate service
(e.g., gas, gas transmission, electric or telephone) shall be
considered a separate industry. This test shall be applied on a
pro forma basis using the market value of all assets immediately
prior to making any investment. (The Portfolios have undertaken to
apply this restriction to 25% or more of their assets.)
Unless the prospectus states that a percentage restriction
applies continuously, it applies only at the time the Fund makes an
investment, and the Fund need not sell securities to meet the
percentage limits if the value of the investment increases in
proportion to the size of the Fund. Other investment restrictions
are listed in "Investment Restrictions" in the Statement of
Additional Information.
How the Portfolios Are Managed
Organization and History. The Company was organized in 1981 as
a Maryland corporation. The Company is an open-end management
investment company. Organized as a series fund, the Company
presently has seven diversified series.
The Company is governed by a Board of Directors, which is
responsible for protecting the interests of shareholders under
Maryland law. The Directors meet periodically throughout the year
to oversee each Portfolio's activities, review its performance, and
review the actions of the Manager and Subadvisers. "Directors and
Officers of the Portfolios" in the Statement of Additional
Information names the Directors and officers of the Portfolios and
provides more information about them. Although the Company will not
normally hold annual meetings of shareholders, they may hold
shareholder meetings from time to time on important matters, and
shareholders have the right to call a meeting to remove a Director
or to take other action described in the Company's Articles of
Incorporation. On matters affecting only one Portfolio, only the
shareholders of that Portfolio are entitled to vote. Separate votes
by Portfolio are required for matters relating to all Portfolios
but affecting the Portfolios differently. An insurance company
issuing a variable contract for which shares of a Portfolio are
held by the insurance company's separate account will vote the
shares in accordance with applicable law, which currently requires
the insurance company to request voting instructions from policy
owners and to vote the shares in proportion to the voting
instructions received. For more information, please refer to your
insurance company's separate account prospectus.
The Board of Directors has the power, without shareholder
approval, to classify or reclassify unissued shares of the Company
into additional series. Shares of each Portfolio currently consist
of a single class and have equal rights as to voting, redemption,
dividends and liquidation with respect to that Portfolio. Shares
are freely transferrable. Please refer to "How the Portfolios are
Managed" in the Statement of Additional Information for further
information on voting of shares.
The Manager, The Subadvisers and their Affiliates. The
Portfolios are managed by the Manager, OppenheimerFunds, Inc.,
which supervises each Portfolio's investment program and handles
its day-to-day business. The Manager carries out its duties,
subject to the policies established by the Board of Directors,
under separate Investment Advisory Agreements for each Portfolio
which state the Manager's responsibilities. The Agreements set
forth the fees paid by a Portfolio to the Manager, and describe the
expenses that a Portfolio is responsible to pay to conduct its
business.
The Manager has operated as an investment adviser since 1959.
The Manager and its affiliates currently manage investment
companies, including other Oppenheimer funds, with assets of more
than $62 billion as of March 31, 1996, and with more than
3 million shareholder accounts. The Manager is owned by
Oppenheimer Acquisition Corp., a holding company that is owned in
part by senior officers of the Manager and controlled by
Massachusetts Mutual Life Insurance Company.
The Subadvisers. The Manager has engaged three Subadvisers to
provide day-to-day portfolio management for certain components of
the LifeSpan Portfolios. The Manager has engaged Babson-Stewart to
provide day-to-day portfolio management services to the
International Equity Portfolio and for the international components
of the Capital Appreciation Portfolio and Balanced Portfolio.
Babson-Stewart, One Memorial Drive, Cambridge, MA 02142, was
originally established in 1987. The general partners of
Babson-Stewart are David L. Babson & Co., which is an indirect
subsidiary of Massachusetts Mutual Life Insurance Company, and
Stewart Ivory & Co., Ltd. As of December 31, 1996, Babson-Stewart
had approximately $4.4 billion in assets under management.
BEA Associates, One Citicorp Center, 153 East 53rd Street,
57th Floor, New York, NY 10022, the Subadviser to the high
yield/high risk bond component of the LifeSpan Portfolios, has been
providing fixed-income and equity management services to
institutional clients since 1984. BEA is a partnership between
Credit Suisse Capital Corporation and CS Advisors Corp. As of
December 31, 1996, BEA Associates, together with its global
affiliate, had $31.3 billion in assets under management.
Pilgrim Baxter, 1255 Drummers Lane, Wayne, PA 19087, the
Subadviser to the small cap component of the Capital Appreciation
and Balanced Portfolios, was established in 1982 to provide
specialized equity management for institutional investors including
other investment companies. Pilgrim Baxter is a wholly-owned
subsidiary of United Asset Management Corporation. As of December
31, 1996, Pilgrim Baxter had over $14 billion in assets under
management.
Each Subadviser is responsible for choosing the investments of
its respective component for each Portfolio and its duties and
responsibilities are set forth in its respective contract with the
Manager. Babson-Stewart is responsible for choosing all
investments for the International Equity Portfolio. The Manager,
not the Portfolios, pays the Subadvisers.
Portfolio Managers. The Manager supervises each Portfolio's
investment program and regularly reviews the asset allocation among
each Portfolio's classes and components. The Manager's personnel
manage certain of the components. The Portfolio Managers of each
component are listed below.
<TABLE>
<CAPTION>
Portfolio/Principal Year Became Business Experience
Portfolio Manager Portfolio Manager (last 5 years)
___________________________________________________________________________
<S> <C> <C>
Total Return Portfolio
Peter M. Antos, C.F.A. 1989 Principal Portfolio Manager of the
Portfolio; Senior Vice President and
Portfolio Manager of the Portfolios and of
the Manager since March, 1996; Senior Vice
President of Harbour View; portfolio
manager of other Oppenheimer funds;
previously Vice President and Senior
Portfolio Manager, Equities G.R. Phelps,
a subsidiary of Connecticut Mutual Life
Insurance Company ("CML") (1989-1996)
Michael C. Strathearn, C.F.A.
1988 Vice President and Portfolio Manager of the
Portfolios and of the Manager since March,
1996; Vice President of Harbour View;
Portfolio Manager of other Oppenheimer
funds; previously a Portfolio Manager,
Equities Connecticut Mutual Life Insurance
Company (1988-1996)
Stephen F. Libera, C.F.A.
1985 Vice President and Portfolio Manager of the
Portfolios and of the Manager since March
1996; Vice President of Harbour View;
Portfolio Manager of other Oppenheimer
funds; previously Vice President and Senior
Portfolio Manager, Fixed Income G.R. Phelps
(1985-1996)
Kenneth B. White, C.F.A.
1992 Vice President and Portfolio Manager of the
Portfolios and the Manager since March, 1996
Vice President of Harbour View; Portfolio
Manager of other Oppenheimer funds;
previously a Portfolio Manager,
Equities CML (1987-1996)
Arthur Zimmer
1996 Vice President and Portfolio Manager of the Manager
and Centennial; an officer of other
Oppenheimer funds
</TABLE>
______________________________________________________________________________
__
<TABLE>
<CAPTION>
Growth Portfolio
<S> <C> <C>
Peter M. Antos, C.F.A. 1989 (see biographical data above)
Michael C. Strathearn, C.F.A. 1988 (see biographical data above)
Kenneth B. White, C.F.A. 1992 (see biographical data above)
International Equity Portfolio
(Babson-Stewart)
James W. Burns
1996 Managing Director, Babson-Stewart
(1993-present) and Director, Stewart Ivory
& Co., Ltd. (since 1990)
John G.L. Wright 1996 Managing Director, Babson-Stewart
(1987-present); Director, Stewart Ivory &
Co., Ltd. (since 1971)
</TABLE>
______________________________________________________________________________
__
<TABLE>
The Components of the LifeSpan Portfolios
International Component
(Babson-Stewart)
<S> <C> <C>
James W. Burns 1996 (see biographical data above)
John G.L. Wright 1996 (see biographical data above)
Value/Growth and Growth/Income Components
(the Manager)
Peter M. Antos, C.F.A. 1995 (see biographical data above)
Michael C. Strathearn, C.F.A. 1995 (see biographical data above)
Kenneth B. White, C.F.A. 1992 (see biographical data above)
Small Cap Component
(Pilgrim Baxter)
Gary L. Pilgrim, C.F.A.
1995 Director, Member of Executive
Committee, President and Chief
Investment Officer, Pilgrim Baxter
(1985-Present)
Michael D. Jones, C.F.A.
1995 Principal Portfolio Manager of the
Portfolio and Analyst, Pilgrim Baxter
(since 1995); Vice President/Portfolio
Manager, Bank of New York (1990-1995)
</TABLE>
______________________________________________________________________________
_
<TABLE>
<CAPTION>
Government Securities/Corporate Bonds Component
(the Manager)
<S> <C> <C>
Stephen F. Libera, C.F.A. 1992 (see biographical data above)
High Yield Bonds Component
(BEA Associates)
Richard J. Lindquist
1995 Executive Director and High Yield Portfolio
Manager, BEA Associates (1995); CS First
Boston (1989-1995)
Short-Term Bond Component
(the Manager)
Stephen F. Libera, C.F.A.
1992 (see biographical data above)
______________________________________________________________________________
_
Government Securities Portfolio
(the Manager)
David A. Rosenberg 1996 Vice President of the Manager
(1994-present) and an Officer and Portfolio
Manager of other Oppenheimer funds;
formerly an officer and Senior Portfolio
Manager, for Delaware Investment Advisors
(until 1994)
David P. Negri 1996 Vice President of the Manager and an Officer
and Portfolio Manager of other
Oppenheimer funds.
</TABLE>
Fees and Expenses. Under separate Investment Advisory
Agreements with each Portfolio, each Portfolio pays the Manager a
monthly fee equal to a percentage of the Portfolio's average daily
net assets as follows: For the Total Return Portfolio, the annual
rates are: 0.625% of the average daily net assets up to $600
million and 0.45% of the average daily net assets over $600
million. For the International Equity Portfolio, the annual rates
are: 1.00% of the average daily net assets up to $250 million and
0.90% of average daily net assets over $250 million. For the
Growth Portfolio, the annual rates are: 0.625% of the average
daily net assets up to $300 million, 0.500% of the next $100
million and 0.450% of the average daily net assets over $400
million. For the Government Securities Portfolio, the annual rates
are: 0.525% of the average daily net assets up to $300 million,
0.500% of the next $100 million and 0.450% of the average daily net
assets over $400 million.
Under separate Investment Advisory Agreements, the Capital
Appreciation Portfolio, Balanced Portfolio and Diversified Income
Portfolio pay the Manager an annual fee equal to 0.85%, 0.85% and
0.75%, respectively, of the Portfolio's average annual net asset
value up to $250 million and 0.75%, 0.75% and 0.65%, respectively
on such assets over $250 million.
Under its Investment Subadvisory Agreements with
Babson-Stewart, the Manager pays Babson-Stewart a monthly fee at
the following annual rates, which decline as the average daily net
assets of the International Equity Portfolio and that portion of
Capital Appreciation Portfolio and Balanced Portfolio allocated to
Babson-Stewart grows: 0.75% of the first $10 million of average
daily net assets allocated to Babson-Stewart, 0.625% of the next
$15 million, 0.50% of the next $25 million and 0.375% of such
assets in excess of $50 million. The portion of the net assets of
all Portfolios allocated to Babson-Stewart will not be aggregated
in applying these breakpoints.
Under its Investment Subadvisory Agreements with BEA, the
Manager pays BEA a quarterly fee which declines as the combined
average daily net assets of each Portfolio allocated to BEA grow at
the following annual rates: 0.45% of the first $25 million of
combined average daily net assets allocated to BEA, 0.40% of the
next $25 million, 0.35% of the next $50 million and 0.25% of the
such assets in excess of $100 million.
Under its Investment Subadvisory Agreements with Pilgrim
Baxter, the Manager pays Pilgrim Baxter a monthly fee at the annual
rate of 0.60% of the combined average daily net assets of the
Portfolios allocated to Pilgrim Baxter. For purposes of
calculating the fee payable to BEA and Pilgrim Baxter, the net
asset values of that portion of the assets of each Portfolio
subadvised by BEA and Pilgrim Baxter are aggregated with that
portion of the net asset value of the assets of Oppenheimer Series
Fund, Inc. managed by BEA and Pilgrim Baxter, respectively.
During the fiscal year ended December 31, 1996, the management
fees (computed on an annualized basis as a percentage of the net
assets of the Portfolios as of the close of business each day) paid
to the investment adviser and the total operating expenses as a
percentage of average net assets of each Portfolio, were as
follows:
Management Total Operating
Portfolio Fees Expense(1)
Total Return .55% .55%
Growth .57% .58%
International Equity 1.00% 1.21%
Capital Application (2) .85% 1.30%
Balanced (2) .85% 1.17%
Diversified Income (2) .75% 1.07%
Government Securities .53% .62%
___________
[FN]
(1)This table does not reflect expenses that apply at the Account
level or to related insurance products.
Each Portfolio pays expenses related to its daily operations,
such as custodian fees, certain Directors' fees, transfer agency
fees, legal and auditing costs. Those expenses are paid out of a
Portfolio's assets and are not paid directly by shareholders.
However, those expenses reduce the net asset value of shares, and
therefore are indirectly borne by shareholders through their
investment. More information about the Investment Advisory
Agreements and the other expenses paid by the Portfolios is
contained in the Statement of Additional Information.
There is also information about the Portfolios' brokerage
policies and practices in "Brokerage Policies of the Portfolios" in
the Statement of Additional Information. That section discusses how
brokers and dealers are selected for the Portfolios' portfolio
transactions. When deciding which brokers to use, the Manager and
Subadvisers are permitted by the Investment Advisory Agreements to
consider whether brokers have sold shares of the Portfolios or any
other funds for which the Manager serves as investment adviser.
Shareholder Inquiries. Inquiries by policy owners for Account
information are to be directed to the insurance company issuing the
Account at the address or telephone number shown in the
accompanying Account Prospectus.
Performance of the Portfolios
Explanation of Performance Terminology. Each Portfolio uses the
term "total return" and certain Portfolios may use the term "yield"
to illustrate their performance. These returns measure the
performance of a hypothetical account in a Portfolio over various
periods, and do not show the performance of each shareholder's
account (which will vary if all dividends are reinvested, or shares
are sold or purchased). A Portfolio's performance data may help
you see how well your investment has done over time and to compare
it to market indices. However, the performance data published by
the Portfolios does not include expenses that apply at the Account
level or to related insurance products which, if considered, would
reduce such performance. Since shares of the Portfolios may be
purchased through a variable contract, you should carefully review
the prospectus of the insurance product you have chosen for
information on charges and expenses.
It is important to understand that a Portfolio's yields and
total returns represent past performance and should not be
considered to be predictions of future returns or performance. This
performance data is described below, but more detailed information
about how total returns and yields are calculated is contained in
the Statement of Additional Information, which also contains
information about other ways to measure and compare a Portfolio's
performance. A Portfolio's investment performance will vary over
time, depending on market conditions, the composition of the
portfolio and expenses.
Total Returns. There are different types of "total returns" used
to measure a Portfolio's performance. Total return is the change
in value of a hypothetical investment in a Portfolio over a given
period, assuming that all dividends and capital gains distributions
are reinvested in additional shares. The cumulative total return
measures the change in value over the entire period (for example,
ten years). An average annual total return shows the average rate
of return for each year in a period that would produce the
cumulative total return over the entire period. However, average
annual total returns do not show a Portfolio's actual year-by-year
performance.
Yield. Government Securities Portfolio calculates yield by
dividing the annualized net investment income per share on the
portfolio during a 30-day period by the maximum offering price on
the last day of the period. The yield data represents a
hypothetical investment return on the portfolio, and does not
measure an investment return based on dividends actually paid to
shareholders. To show that return, a dividend yield may be
calculated. Dividend yield is calculated by dividing the dividends
of a class derived from net investment income during a stated
period by the maximum offering price on the last day of the period.
How Have the Portfolios Performed? Below is a discussion by the
Manager of the Portfolios' performance during their last fiscal
year ended December 31, 1996, followed by a graphical comparison of
each Portfolio's performance to an appropriate broad-based market
index.
Management's Discussion of Performance.
During the Portfolios' fiscal year ended December 31, 1996,
the domestic stock market performed strongly, reaching record
highs which segments of the bond market declined. During that
period, the Manager emphasized the following investment strategies
and techniques: Total Return Portfolio maintained its strategy of
allocating its assets between stocks with low price-to-earnings
ratios and recent positive earnings surprises, high grade bonds,
and money market instruments by identifying which among the three
is the more undervalued group with the most potential for return.
In the growing but volatile market during that period, the Manager
determined that equity securities it targets were by many historic
standards over-valued. As a result, the Manager invested a smaller
percentage of the Portfolio's assets in equity securities which
negatively affected its performance. Growth Portfolio maintained
its strategy of targeting stocks with low price-to-earnings ratios
and recent positive earnings surprises. During that period, the
Portfolio underperformed the stock market, due in part to investor
anxiety about the economic and political environments and a
resulting willingness to pay up for stocks with higher price-to-
earnings ratios that offered a greater level of certainty. The
result was that the Manager's stock selection strategy was out of
favor in 1996. International Equity Portfolio performed well over
the past year, due in part to the Portfolio's concentration in
European companies and companies in the fast-growing Asian markets,
such as Hong Kong and Singapore. The Manager also reduced the
number of the Portfolio's holdings to include more selective
stocks, many of which were medium-sized which typically offer
faster growth than the more established large growth companies.
LifeSpan Capital Appreciation Portfolio outperformed the S&P
500, due primarily to the Manager's allocation of Portfolio assets
primarily in equity securities. The Portfolio's small cap equity
component was the strongest performing equity component of the
Fund, whose returns were fueled by a relatively large weighing in
technology stocks. The High Yield and International components
followed with above-average returns. The Value/Growth component of
the portfolio provided a moderate increase, primarily from the
Portfolio's investments in U.S. companies undergoing corporate
restructuring. The Corporate/Government component returns were
down, mainly the result of rising interest rates.
LifeSpan Balanced Portfolio. The Portfolio's performance was
positively affected by the larger allocation of portfolio assets in
equities. The majority of the Portfolio's return during the period
came from the Small Cap and International components, with the
Value/Growth and Growth/Income components reporting more modest
contributions to the Portfolio's performance. Of the fixed income
portion of the portfolio, the High Yield component was the
strongest performer while the Short-Term Bond and
Government/Corporate Bond components underperformed.
LifeSpan Diversified Income Portfolio. The Portfolio
performance was favorably affected by the Manager's focus on
earning high current income. The High Yield Bond segment provided
the greatest contribution to performance while the Growth/Income
component was also a primary contributor to the Portfolio's
positive performance. However, the Government/Corporate Bond
component declined and the Short-Term Bond component showed only a
modest increase as a result of the rising interest rate
environment.
Government Securities Portfolio provided competitive returns
when the market was up and limited its volatility when the market
moved down. This was due primarily to the Manager's defensive,
income-focused investment approach.
Each Portfolio's portfolio and its portfolio manager's
strategies are subject to change.
Comparing each Portfolio's Performance to the Market. The
charts below show the performance of hypothetical $10,000
investments in each Portfolio held until December 31, 1996.
Performance information does not reflect charges that apply to
separate accounts investing in the Funds. If these charges and
expenses were taken into account, performance w ould be lower.
Total Return Portfolio's performance is compared to the
performance of the Merrill Lynch Corporate & Government Master
Index and S&P 500 Index. The Merrill Lynch Corporate & Government
Master Index is a composite of Corporate and Government Master
indices exclusive of pass-through securities and flower bonds. The
S&P 500 Index is a broad-based index of equity securities widely
regarded as a general measurement of the performance of the U.S.
equity securities market. The performance of Growth Portfolio is
compared to the performance of the S&P 500 Index. LifeSpan Capital
Appreciation Portfolio is compared to the Wilshire 5000 Index and
the S&P 500 Index. The Wilshire 5000 Index measures the
performance of all U.S. headquartered equity securities with
readily available price data. Approximately 6500 capitalization
weighted security returns are used to adjust the index. The index
is an approximator of dollar changes in the U. S. equity market.
The Wilshire 5000 capitalization is about 82% NYSE, 2% AMEX and 16%
OTC. International Equity Portfolio is compared to the Morgan
Stanley Europe, Australia & Far East Index which is an index
including approximately 1000 companies representing the stock
markets of 18 countries. The average company has a market
capitalization of over $3 billion. LifeSpan Balanced Portfolio is
compared to the Lehman Brothers Corporate/Government Bond Index and
the S&P 500 Index. The Lehman Brothers Corporate/Government Bond
Indexincludes the Government and Corporate Bond Indices, including
U.S. government treasury and agency securities, corporate and
yankee bonds. LifeSpan Diversified Income Portfolio is compared to
Lehman Brothers Intermediate Government/Corporate Bond Index which
includes fixed rate debt issues rated investment grade or high by
Moody's, S&P, or Fitch, in that order. Government Securities
Portfolio is compared to Merrill Lynch Government Master Index
which is a composite of both the Treasury and Agency Master
indices. It includes all issues of the U.S. Government and
agencies thereof, exclusive of pass-through securities and flower
bonds. Index performance reflects the reinvestment of dividends
but does not consider the effect of capital gains or transaction
costs, and none of the data below shows the effect of taxes. Also,
a Portfolio's performance reflects the effect of that Portfolio's
business and operating expenses. While index comparisons may be
useful to provide a benchmark for a Portfolio's performance, it
must be noted that the Portfolio's investments are not limited to
the securities in the one index. Moreover, the index performance
data does not reflect any assessment of the risk of the investments
included in the index.
Comparison of Change in Value of $10,000 Hypothetical
Investments in Total Return Portfolio
Versus Merrill Lynch Corporate & Government Master Index and S&P
500 Index
[Graph comparing total return of Total Return Portfolio shares to
performance of Merrill Lynch Corporate & Government Master Index
and S&P 500 Index]
Average Annual Total Return at 12/31/96(1)
1 year 5 years 10 years
10.14% 11.52% 12.32%
(1) The inception date of the Portfolio was 9/30/82. Total returns
and the ending account value in the graph show change in share
value and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in Growth Portfolio Versus S&P 500 Index
[Graph comparing total return of Growth Portfolio shares to
performance of S&P 500 Index]
Average Annual Total Returns at 12/31/96(1)
1 year 5 years 10 years
18.87% 17.33% 15.94%
(1) The inception date of the Fund was 1/21/82. Total returns and
the ending account value in the graph show change in share value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in International Equity Portfolio Versus Morgan Stanley Europe,
Australia & Far East Index
[Graph comparing total return of International Equity Portfolio
shares to performance of Morgan Stanley Europe, Australia & Far
East Index]
Average Annual Total Returns at 12/31/96(1)
1 year Life of Fund
13.26% 8.78%
(1) The inception date of the Fund was 5/13/92. Total returns and
the ending account value in the graph show change in shares value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in LifeSpan Capital Appreciation Portfolio Versus S&P 500 Index and
Wilshire 5000 Index
[Graph comparing total return of LifeSpan Capital Appreciation
Portfolio shares to performance of S&P 500 Index and Wilshire 5000
Index]
Average Annual Total Returns at 12/31/96(1)
1 year Life of Fund
17.97% 18.80%
(1) The inception date of the Fund was 9/1/95. Total returns and
the ending account value in the graph show change in share value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in LifeSpan Balanced Portfolio Versus S&P 500 Index and Lehman
Brothers Corporate/Government Bond Index
[Graph comparing total return of LifeSpan Balanced Portfolio shares
to performance of S&P 500 Index and Lehman Brothers
Corporate/Government Bond Index]
Average Annual Total Returns at 12/31/96(1)
1 year Life of Fund
13.38% 14.85%
(1) The inception date of the Fund was 9/1/95. Total returns and
the ending account value in the graph show change in share value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in LifeSpan Diversified Income Portfolio Versus Lehman Brothers
Intermediate Government/Corporate Bond Index
[Graph comparing total return of LifeSpan Diversified Income
Portfolio shares to performance of Lehman Brothers Intermediate
Government/Corporate Bond Index]
Average Annual Total Returns at 12/31/96(1)
1 year Life of Fund
6.93% 9.61%
(1) The inception date of the Fund was 9/1/95. Total returns and
the ending account value in the graph show change in share value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
Comparison of Change in Value of $10,000 Hypothetical Investments
in Government Securities Portfolio Versus Merrill Lynch Government
Master Index
[Graph comparing total return of Government Securities Portfolio to
performance of Merrill Lynch Government Master Index]
Average Annual Total Returns at 12/31/96(1)
1 year Life of Fund
1.93% 6.93%
______________
(1) The inception date of the Fund was 5/13/92. Total returns and
the ending account value in the graph show change in share value
and include reinvestment of all dividends and capital gains
distributions.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
ABOUT YOUR ACCOUNT
How to Buy Shares
Shares of each Portfolio are offered for purchase by insurance
company Accounts as an investment medium for variable life
insurance policies and variable annuity contracts, as described in
the accompanying Account Prospectus. Charges and deductions made
from purchase payments for variable contracts are stated in the
current prospectus for those contracts. Shares of each Portfolio
are offered at their respective offering price, which (as used in
this Prospectus and the Statement of Additional Information) is net
asset value (without a sales charge).
All purchase orders are processed at the offering price next
determined after receipt by the Company of a purchase order in
proper form from an Account. The offering price (and net asset
value) is determined as of the close of The New York Stock
Exchange, which is normally 4:00 P.M., New York time, but may be
earlier on some days. Net asset value per share of each Portfolio
is determined by dividing the value of that Portfolio's net assets
by the number of its shares outstanding. The sale of shares of a
Portfolio will be suspended during any period when the
determination of net asset value is suspended and may be suspended
by the Board of Directors whenever the Board judges it in that
Portfolio's best interest to do so. The Board of Directors has
established procedures for valuing each Portfolio's securities. In
general, those valuations are based on market value. Further
details are in "About Your Account How to Buy Shares" in the
Statement of Additional Information.
How to Sell Shares
Because shares of the Portfolios are held by insurance company
Accounts, and not directly by investors, you should refer to the
prospectus of your insurance company's Account for information on
how to redeem shares of a Portfolio held for your policy or
contract. Payment for shares tendered by an Account for redemption
is made ordinarily in cash and forwarded within seven days after
receipt by the Company's transfer agent, OppenheimerFunds Services
(the "Transfer Agent"), of redemption instructions in proper form
from an Account, except under unusual circumstances as determined
by the Securities and Exchange Commission. The redemption price
will be the net asset value next determined after the receipt by
the Transfer Agent of a request in proper form. The market value
of the securities in the portfolio of the Portfolios is subject to
daily fluctuations and the net asset value of the Portfolios'
shares will fluctuate accordingly. Therefore, the redemption value
may be more or less than the original cost.
Dividends, Capital Gains and Taxes
Dividends of the Portfolios.
Each Portfolio intends to pay out all of its net investment
income and net realized capital gains, if any, on an annual basis.
The Portfolios distribute their dividends, if any, each year on a
date set by the Board of Directors. Normally, net realized capital
gains, if any, are distributed annually for the Portfolios. Such
income and capital gains are reinvested in additional shares of the
Portfolios. Each Portfolio makes dividend and capital gain
distributions on a per-share basis. After every distribution from
each of these Portfolios, the Portfolio's share price drops by the
amount of the distribution. Since dividends and capital gain
distributions are reinvested, the total value of an account will
not be affected by such distributions because, although the shares
will have a lower price, there will be correspondingly more of
them.
Tax Treatment to the Account as Shareholder. The portion of
distributions attributable to the excess of a Portfolio's net
long-term capital gain over its net short-term capital loss is
generally characterized as long-term capital gain. The tax
treatment of such dividends and distributions to an Account depends
on the tax status of and the tax rules applicable to that Account,
concerning which you should consult the prospectus of your
insurance company's separate account. It is expected that shares of
the Portfolios will be held by life insurance company separate
accounts that fund variable contracts. Under current federal tax
law, dividends and capital gains distributions paid by any
Portfolio to reserves for a variable contract are not currently
taxable.
Tax Status of the Portfolios. If each Portfolio qualifies as a
"regulated investment company" under the Internal Revenue Code,
that Portfolio will not be liable for Federal income taxes on
amounts paid as dividends and distributions in accordance with the
Code's requirements. The Portfolios did qualify during their last
fiscal year and the Company intends that they will qualify in
current and future years. Each Portfolio also intends to follow
certain portfolio diversification requirements under the Internal
Revenue Code so that Accounts investing in the Portfolios may
satisfy the tax diversification requirements to which they are
subject. The above discussion relates solely to Federal tax laws.
This discussion is not exhaustive and a qualified tax adviser
should be consulted if you have any questions about the tax effects
of your investment through a variable contract.
<PAGE>
APPENDIX A:
Description of Ratings Categories of Rating Services
Description of Moody's Investors Service, Inc. Bond Ratings
Aaa: Bonds rated "Aaa" are judged to be the best quality and
to carry the smallest degree of investment risk. Interest payments
are protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, the changes that can be expected are most
unlikely to impair the fundamentally strong position of such
issues.
Aa: Bonds rated "Aa" are judged to be of high quality by all
standards. Together with the "Aaa" group, they comprise what are
generally known as "high-grade" bonds. They are rated lower than
the best bonds because margins of protection may not be as large as
with "Aaa" securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which
make the long-term risks appear somewhat larger than those of "Aaa"
securities.
A: Bonds rated "A" possess many favorable investment
attributes and are to be considered as upper-medium grade
obligations. Factors giving security to principal and interest are
considered adequate but elements may be present which suggest a
susceptibility to impairment sometime in the future.
Baa: Bonds rated "Baa" are considered medium grade
obligations, that is, they are neither highly protected nor poorly
secured. Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or
may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and have
speculative characteristics as well.
Ba: Bonds rated "Ba" are judged to have speculative
elements; their future cannot be considered well-assured. Often
the protection of interest and principal payments may be very
moderate and not well safeguarded during both good and bad times
over the future. Uncertainty of position characterizes bonds in
this class.
B: Bonds rated "B" generally lack characteristics of
desirable investment. Assurance of interest and principal payments
or of maintenance of other terms of the contract over any long
period of time may be small.
Caa: Bonds rated "Caa" are of poor standing and may be in
default or there may be present elements of danger with respect to
principal or interest.
Ca: Bonds rated "Ca" represent obligations which are
speculative in a high degree and are often in default or have other
marked shortcomings.
C: Bonds rated "C" can be regarded as having extremely poor
prospects of ever attaining any real investment standing.
Description of Standard & Poor's Bond Ratings
AAA: "AAA" is the highest rating assigned to a debt
obligation and indicates an extremely strong capacity to pay
principal and interest. AA: Bonds rated "AA" also qualify as high
quality debt obligations. Capacity to pay principal and interest
is very strong, and in the majority of instances they differ from
"AAA" issues only in small degree.
A: Bonds rated "A" have a strong capacity to pay principal
and interest, although they are somewhat more susceptible to
adverse effects of change in circumstances and economic conditions.
BBB: Bonds rated "BBB" are regarded as having an adequate
capacity to pay principal and interest. Whereas they normally
exhibit protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay principal and interest for bonds in this category
than for bonds in the "A" category.
BB, B, CCC, CC: Bonds rated "BB," "B," "CCC" and "CC" are
regarded, on balance, as predominantly speculative with respect to
the issuer's capacity to pay interest and repay principal in
accordance with the terms of the obligation. "BB" indicates the
lowest degree of speculation and "CC" the highest degree. While
such bonds will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or
major risk exposures to adverse conditions.
C, D: Bonds on which no interest is being paid are rated
"C." Bonds rated "D" are in default and payment of interest and/or
repayment of principal is in arrears.
<PAGE>
APPENDIX TO PROSPECTUS
Graphic material included in Prospectus of Panorama Series Fund,
Inc.: "Comparison of Total Return of Panorama Series Fund, Inc.
with Broad-Based Indices - Changes in Value of a $10,000
Hypothetical Investment"
Linear graphs will be included in the Prospectus of Panorama
Series Fund, Inc. (the"Portfolios") depicting the initial account
value and subsequent account value of a hypothetical $10,000
investment in shares of the Portfolios for the life of each
Portfolio and comparing such values with the same investments over
the same time periods in Broad-Based Indices. Set forth below are
the relevant data points that will appear on the linear graphs.
Additional information with respect to the foregoing, including a
description of the Broad-Based Indices, is set forth in the
Prospectus under "How Have the Portfolios Performed? - Management's
Discussion of Performance."
<TABLE>
<CAPTION>
Merrill
Lynch
Fiscal Total Return S&P 500 Corp.&Gov't
Year Ended Portfolio Index Master Index
<S> <C> <C> <C>
12/31/86 $10,000 $10,000 $10,000
12/31/87 $10,427 $10,525 $10,210
12/31/88 $11,641 $12,268 $10,998
12/31/89 $14,316 $16,149 $12,551
12/31/90 $14,387 $15,647 $13,618
12/31/91 $18,529 $20,404 $15,781
12/31/92 $20,421 $21,956 $16,994
12/31/93 $23,746 $24,164 $18,873
12/31/94 $23,278 $24,482 $18,223
12/31/95 $29,019 $33,671 $21,723
12/31/96 $31,963 $41,397 $22,368
Fiscal Growth S&P 500
Year Ended Portfolio Index
12/31/86 $10,000 $10,000
12/31/87 $10,026 $10,525
12/31/88 $11,475 $12,268
12/31/89 $15,584 $16,149
12/31/90 $14,353 $15,647
12/31/91 $19,740 $20,404
12/31/92 $22,180 $21,956
12/31/93 $26,885 $24,164
12/31/94 $26,750 $24,482
12/31/95 $36,931 $33,671
12/31/96 $43,899 $41,397
Fiscal International Morgan Stanley
Year Ended Equity Portfolio EAFE Index
5/13/92(1) $10,000 $10,000
12/31/92 $9,567 $9,944
12/31/93 $11,653 $13,219
12/31/94 $11,822 $14,285
12/31/95 $13,039 $15,935
12/31/96 $14,768 $16,949
Fiscal LifeSpan Capital Wilshire
Year Ended Appreciation Portfolio S&P 500 Index 5000 Index
9/1/95(1) $10,000 $10,000 $10,000
12/31/95 $10,665 $11,049 $10,812
12/31/96 $12,582 $13,584 $12,849
Fiscal LifeSpan Balanced Lehman Brothers
Year Ended Portfolio S&P 500 Index Corp./Gov't.
Bond Index
9/1/95(1) $10,000 $10,000 $10,000
12/31/95 $10,608 $11,049 $10,572
12/31/96 $12,027 $13,584 $10,879
Lehman Brothers
Fiscal LifeSpan Diversified Intermediate
Year Ended Income Portfolio Corporate Bond Index
9/1/95(1) $10,000 $10,000
12/31/95 $10,569 $10,427
12/31/96 $11,301 $10,849
Merrill Lynch
Fiscal Government Government
Year Ended Securities Portfolio Master Index
05/13/92(1) $10,000 $10,000
12/31/92 $10,661 $10,834
12/31/93 $11,832 $11,986
12/31/94 $11,254 $11,597
12/31/95 $13,382 $13,722
12/31/96 $13,640 $14,102
_______________________
(1) Commencement of operations.
</TABLE>
<PAGE>
Panorama Series Fund, Inc.
6803 South Tucson Way
Englewood, Colorado 80112
1-800-525-7048
Investment Advisor
OppenheimerFunds, Inc.
Two World Trade Center
New York, New York 10048-0203
Transfer Agent
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
1-800-525-7048
Custodian of Portfolio Securities
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Independent Auditors
Deloitte & Touche, LLP
555 Seventeenth Street
Denver, Colorado 80202
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
1600 Broadway
Denver, Colorado 80202
No dealer, broker, salesperson or any other person has been
authorized to give any information or to make any representations
other than those contained in this Prospectus or the Statement of
Additional Information, and if given or made, such information and
representations must not be relied upon as having been authorized
by the Portfolios, OppenheimerFunds, Inc., or any affiliate
thereof. This Prospectus does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities offered
hereby in any state to any person to whom it is unlawful to make
such an offer in such state.
i:\legal\prosp\panopsp.#2
Panorama Series Fund, Inc.
6803 South Tucson Way, Englewood, Colorado 80112
1-800-525-7048
Statement of Additional Information dated May 1, 1997
PANORAMA SERIES FUND, INC. (referred to as the "Company") is an
investment company consisting of seven separate series (each is
referred to as a "Portfolio" and collectively as the "Portfolios"):
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
Government Securities Portfolio
(collectively, these are referred to as the "Panorama
Portfolios")
and
LifeSpan Capital Appreciation Portfolio ("Capital Appreciation
Portfolio")
LifeSpan Balanced Portfolio ("Balanced Portfolio")
LifeSpan Diversified Income Portfolio ("Diversified Income
Portfolio")
(collectively, these are referred to as the "LifeSpan
Portfolios")
Shares of the Portfolios are sold only to provide benefits
under variable life insurance policies and variable annuity
contracts (collectively, these are referred to as the "Accounts"),
as described in such Accounts' Prospectuses.
This Statement of Additional Information is not a Prospectus.
This document contains additional information about the Portfolios
and supplements information in the Portfolios' Prospectus dated May
1, 1997. It should be read together with the Prospectus which may
be obtained by writing to the Portfolios' Transfer Agent,
OppenheimerFunds Services, at P.O. Box 5270, Denver, Colorado 80217
or by calling the Transfer Agent at the toll-free number shown
above.
<PAGE>
Contents
Page
ABOUT THE PORTFOLIOS
Investment Objective and Policies. . . . . . . . . . . . 3
Investment Techniques and Strategies . . . . . . . . . . 3
Other Investment Restrictions. . . . . . . . . . . . . .22
How the Portfolios are Managed . . . . . . . . . . . . .27
Organization and History . . . . . . . . . . . . . . .27
Directors and Officers of the Company. . . . . . . . .27
The Manager, and Subadvisers and their Affiliates. . .32
Brokerage Policies of the Portfolios . . . . . . . . . .35
Performance of the Portfolios. . . . . . . . . . . . . .37
ABOUT YOUR ACCOUNT
How to Buy Shares. . . . . . . . . . . . . . . . . . . .40
Dividends, Capital Gains and Taxes . . . . . . . . . . .42
Additional Information About the Portfolios. . . . . . .44
FINANCIAL INFORMATION ABOUT THE PORTFOLIOS
Independent Auditors' Report . . . . . . . . . . . . . .45
Financial Statements . . . . . . . . . . . . . . . . . .46
APPENDIX A: Industry Classifications . . . . . . . . . A-1
<PAGE>
ABOUT THE PORTFOLIOS
The Portfolios' investment adviser is OppenheimerFunds, Inc.
(the "Manager"). In the case of the LifeSpan Portfolios, the
Manager has engaged Babson-Stewart Ivory International ("Babson-
Stewart"), BEA Associates ("BEA Associates")and Pilgrim, Baxter &
Assoc. Ltd. ("Pilgrim") as subadvisers to assist in the management
of the LifeSpan Portfolios. Babson-Stewart also serves as
subadviser to the International Equity Portfolio. Babson-Stewart,
BEA Associates and Pilgrim are sometimes referred to herein
individually as a "Subadviser" and collectively as the
"Subadvisers."
Investment Objectives And Policies
The investment objectives and policies of each Portfolio are
described in the Prospectus. Set forth below is supplemental
information about those policies and the types of securities in
which the Portfolios may invest, as well as the strategies the
Portfolios may use to try to achieve their objective. Certain
capitalized terms used in this Statement of Additional Information
have the same meaning as those terms have in the Prospectus. Not
all of the Portfolios engage in all of the investment practices
described below, and each section indicates which Portfolios engage
in a particular practice.
Investment Techniques and Strategies
Foreign Securities (All Portfolios except Government Securities
Portfolio). Consistent with any limitations a Portfolio may have
on foreign investing set forth in the Prospectus, each Portfolio
and, in particular, the International Equity Portfolio, may invest
in foreign securities. The Portfolios may also invest in debt and
equity securities of corporate and governmental issuers of
countries with emerging economies or securities markets. The
International Equity Portfolio, Growth Portfolio and Total Return
Portfolio are subject to restrictions on the amount of its assets
that may be invested in foreign securities. See "Other Investment
Restrictions," below.
Investing in foreign securities offers potential benefits not
available from investing solely in securities of domestic issuers,
such as the opportunity to invest in foreign issuers that appear to
offer growth potential, or in foreign countries with economic
policies or business cycles different from those of the U.S., or to
reduce fluctuations in portfolio value by taking advantage of
foreign stock or bond markets that do not move in a manner parallel
to U.S. markets. If a Portfolio's portfolio securities are held
abroad, the countries in which such securities may be held and the
sub-custodians holding them must be approved by the Portfolio's
Board of Directors under applicable rules of the Securities and
Exchange Commission ("SEC"). In buying foreign securities, a
Portfolio may convert U.S. dollars into foreign currency, but only
to effect securities transactions on foreign securities exchanges
and not to hold such currency as an investment.
"Foreign securities" include equity and debt securities of
companies organized under the laws of countries other than the
United States and debt securities of foreign governments that are
traded primarily on foreign securities exchanges or in the foreign
over-the-counter markets. Securities of foreign issuers that are
represented by American depository receipts, or that are primarily
traded on a U.S. securities exchange, or are traded primarily in
the U.S. over-the-counter market are not considered "foreign
securities" for purposes of a Portfolio's investment allocations,
because they are not subject to many of the special considerations
and risks (discussed below) that apply to foreign securities traded
and held abroad.
Risks of Foreign Investing. Investing in foreign securities,
and in particular in securities in emerging countries, involves
special additional risks and considerations not typically
associated with investing in securities of issuers traded in the
U.S. These include: reduction of income by foreign taxes;
fluctuation in value of foreign portfolio investments due to
changes in currency rates and control regulations (e.g., currency
blockage); transaction charges for currency exchange; lack of
public information about foreign issuers; lack of uniform
accounting, auditing and financial reporting standards comparable
to those applicable to domestic issuers; less volume on foreign
exchanges than on U.S. exchanges; greater volatility and less
liquidity in some foreign markets than in the U.S.; less regulation
of foreign issuers, stock exchanges and brokers than in the U.S.;
greater difficulties in commencing lawsuits against foreign
issuers; higher brokerage commission rates than in the U.S.;
increased risks of delays in settlement of portfolio transactions
or loss of certificates for portfolio securities; possibilities in
some countries, and in particular emerging countries, of
expropriation or nationalization of assets, confiscatory taxation,
political, financial or social instability or adverse diplomatic
developments; and unfavorable differences between the U.S. economy
and foreign economies. In the past, U.S. Government policies have
discouraged certain investments abroad by U.S. investors, through
taxation or other restrictions, and it is possible that such
restrictions could be re-imposed.
Because the Portfolios may invest in securities that are
denominated or quoted in foreign currencies, the strength or
weakness of the U.S. dollar against such currencies may account for
part of a Portfolio's investment performance. A decline in value
of any particular currency against the U.S. dollar will cause a
decline in the U.S. dollar value of a Portfolio's holdings of
securities denominated in that currency, and therefore will cause
an overall decline in the Portfolio's net asset value and any net
investment income (and capital gains) to be distributed in U.S.
dollars to shareholders of the Portfolios.
A Portfolio's investment income or, in some cases, capital
gains from foreign issuers may be subject to foreign withholding or
other foreign taxes, thereby reducing a Portfolio's net investment
income and/or net realized capital gains.
Convertible Securities (All Portfolios except Government
Securities Portfolio). While convertible securities are a form of
debt security, in many cases their conversion feature (allowing
conversion into equity securities) causes them to be regarded more
as "equity equivalents." As a result, any rating assigned to the
security has less impact on the Manager's or relevant Subadviser's
investment decision with respect to convertible securities than in
the case of non-convertible debt securities. To determine whether
convertible securities should be regarded as "equity equivalents,"
the Manager or relevant Subadviser examines the following factors:
(1) whether, at the option of the investor, the convertible
security can be exchanged for a fixed number of shares of common
stock of the issuer, (2) whether the issuer of the convertible
securities has restated its earnings per share of common stock on
a fully diluted basis (considering the effect of converting the
convertible securities), and (3) the extent to which the
convertible security may be a defensive "equity substitute,"
providing the ability to participate in any appreciation in the
price of the issuer's common stock.
Debt Securities (All Portfolios). All debt securities are subject
to two types of risks: credit risk and interest rate risk (these
are in addition to other investment risks that may affect a
particular security).
Credit Risk. Credit risk relates to the ability of the issuer
to meet interest or principal payments or both as they become due.
Generally, higher yielding bonds are subject to credit risk to a
greater extent than higher quality bonds.
Interest Rate Risk. Interest rate risk refers to the
fluctuations in value of fixed-income securities resulting solely
from the inverse relationship between the market value of
outstanding fixed-income securities and changes in interest rates.
An increase in interest rates will generally reduce the market
value of fixed-income investments, and a decline in interest rates
will tend to increase their value. In addition, debt securities
with longer maturities, which tend to produce higher yields, are
subject to potentially greater capital appreciation and
depreciation than obligations with shorter maturities.
Fluctuations in the market value of fixed-income securities
subsequent to their acquisition will not affect the interest
payable on those securities, and thus the cash income from such
securities, but will be reflected in the valuations of those
securities used to compute a Portfolio's net asset values.
U.S. Government Securities (All Portfolios). U.S. Government
Securities are debt obligations issued or guaranteed by the U.S.
Government or one of its agencies or instrumentalities, and include
"zero coupon" Treasury securities. Some of these obligations,
including U.S. Treasury notes and bonds, and mortgage-backed
securities guaranteed by the Government National Mortgage
Association ("GNMA"), are supported by the full faith and credit of
the United States, which means that the government pledges to use
its taxing power to repay the debt. Other U.S. Government
Securities issued or guaranteed by Federal agencies or government-
sponsored enterprises are not supported by the full faith and
credit of the United States. They may include obligations
supported by the ability of the issuer to borrow from the U.S.
Treasury. However, the Treasury is not under a legal obligation to
make a loan. Examples of these are obligations of Federal Home
Loan Mortgage Corporation ("FHLMC") Other obligations are
supported by the credit of the instrumentality, such as bonds
issued by Federal National Mortgage Association ("FNMA").
U.S. Treasury Obligations. These include Treasury Bills
(which have maturities of one year or less when issued), Treasury
Notes (which have maturities of one to ten years when issued) and
Treasury Bonds (which have maturities generally greater than ten
years when issued). U.S. Treasury obligations are backed by the
full faith and credit of the United States.
Mortgage-Backed Securities (All Portfolios except, Growth
Portfolio and International Equity Portfolio). These securities
represent participation interests in pools of residential mortgage
loans which are guaranteed by agencies or instrumentalities of the
U.S. Government. Such securities differ from conventional debt
securities which generally provide for periodic payment of interest
in fixed or determinable amounts (usually semi-annually) with
principal payments at maturity or specified call dates. Some
mortgage-backed securities in which the Portfolios may invest may
be backed by the full faith and credit of the U.S. Treasury (e.g.,
GNMA direct pass-through certificates; some are supported by the
right of the issuer to borrower from the U.S. Government (e.g.,
FHLMC obligations); and some are backed by only the credit of the
issuer itself. Those guarantees do not extend to the value of or
yield of the mortgage-backed securities themselves or to the net
asset value of a Portfolio's shares.
The yield on mortgage-backed securities is based on the
average expected life of the underlying pool of mortgage loans.
The actual life of any particular pool will be shortened by any
unscheduled or early payments of principal and interest. Principal
prepayments generally result from the sale of the underlying
property or the refinancing or foreclosure of underlying mortgages.
The occurrence of prepayments is affected by a wide range of
economic, demographic and social factors and, accordingly, it is
not possible to predict accurately the average life of a particular
pool. Yield on such pools is usually computed by using the
historical record of prepayments for that pool, or, in the case of
newly issued mortgages, the prepayment history of similar pools.
The actual prepayment experience of a pool of mortgage loans may
cause the yield realized by a Portfolio to differ from the yield
calculated on the basis of the expected average life of the pool.
Prepayments tend to increase during periods of falling
interest rates, while during periods of rising interest rates
prepayments will most likely decline. When prevailing interest
rates rise, the value of a pass-through security may decrease as do
the values of other debt securities, but, when prevailing interest
rates decline, the value of a pass-through security is not likely
to rise to the extent that the value of other debt securities rise,
because of the prepayment feature of pass-through securities. A
Portfolio's reinvestment of scheduled principal payments and
unscheduled prepayments it receives may occur at times when
available investments offer higher or lower rates than the original
investment, thus affecting the yield of such Portfolio. Monthly
interest payments received by a Portfolio have a compounding effect
which may increase the yield to the Portfolio more than debt
obligations that pay interest semi-annually. A Portfolio may
purchase mortgage-backed securities at par, at a premium or at a
discount. Accelerated prepayments adversely affect yields for
pass-through securities purchased at a premium (i.e., at a price in
excess of their principal amount) and may involve additional risk
of loss of principal because the premium may not have been fully
amortized at the time the obligation is repaid. The opposite is
true for pass-through securities purchased at a discount.
As new types of mortgage-related securities are developed and
offered to investors, the Manager will, subject to the direction of
the Board of Directors and consistent with a Portfolio's investment
objective and policies, consider making investments in such new
types of mortgage-related securities.
GNMA Certificates. GNMA certificates are mortgaged-backed
securities of GNMA that evidence an undivided interest in a pool or
pools of mortgages ("GNMA Certificates"). The GNMA Certificates
that a Portfolio may purchase may be of the "modified pass-through"
type, which entitle the holder to receive timely payment of all
interest and principal payments due on the mortgage pool, net of
fees paid to the "issuer" and GNMA, regardless of whether the
mortgagor actually makes the payments.
The National Housing Act authorizes GNMA to guarantee the
timely payment of principal and interest on securities backed by a
pool of mortgages insured by the Federal Housing Administration
("FHA") or guaranteed by the Veterans Administration ("VA"). The
GNMA guarantee is backed by the full faith and credit of the U.S.
Government. GNMA is also empowered to borrow without limitation
from the U.S. Treasury if necessary to make any payments required
under its guarantee.
The average life of a GNMA Certificate is likely to be
substantially shorter than the original maturity of the mortgages
underlying the securities. Prepayments of principal by mortgagors
and mortgage foreclosures will usually result in the return of the
principal investment long before the maturity of the mortgages in
the pool. Foreclosures impose no risk to principal investment
because of the GNMA guarantee, except to the extent that a
Portfolio has purchased the certificates at a premium in the
secondary market.
FNMA Securities. The Federal National Mortgage Association
("FNMA") was established to create a secondary market in mortgages
insured by the FHA. FNMA issues guaranteed mortgage pass-through
certificates ("FNMA Certificates"). FNMA Certificates resemble
GNMA Certificates in that each FNMA Certificate represents a pro
rata share of all interest and principal payments made and owed on
the underlying pool. FNMA guarantees timely payment of interest
and principal on FNMA Certificates. The FNMA guarantee is not
backed by the full faith and credit of the U.S. Government.
FHLMC Securities. The Federal Home Loan Mortgage Corporation
("FHLMC") was created to promote development of a nationwide
secondary market for conventional residential mortgages. FHLMC
issues two types of mortgage pass-through certificates ("FHLMC
Certificates"): mortgage participation certificates ("PCs") and
guaranteed mortgage certificates ("GMCs"). PCs resemble GNMA
Certificates in that each PC represents a pro rata share of all
interest and principal payments made and owed on the underlying
pool. FHLMC guarantees timely monthly payment of interest on PCs
and the ultimate payment of principal. The FHLMC guarantee is not
backed by the full faith and credit of the U.S. Government. GMCs
also represent a pro rata interest in a pool of mortgages.
However, these instruments pay interest semi-annually and return
principal once a year in guaranteed minimum payments. The expected
average life of these securities is approximately ten years. The
FHLMC guarantee is not backed by the full faith and credit of the
U.S. Government.
Private-Issuer Mortgage-Backed Securities. Mortgage-backed
securities may also be issued by trusts or other entities formed or
sponsored by private originators of and institutional investors in
mortgage loans and other foreign or domestic non-governmental
entities (or represent custodial arrangements administered by such
institutions). These private originators and institutions include
domestic and foreign savings and loan associations, mortgage
bankers, commercial banks, insurance companies, investment banks
and special purpose subsidiaries of the foregoing. Privately
issued mortgage-backed securities are generally backed by pools of
conventional (i.e., non-government guaranteed or insured) mortgage
loans. Since such mortgage-backed securities are not guaranteed by
an entity having the credit standing of GNMA, FNMA or FHLMC, in
order to receive a high quality rating, they normally are
structured with one or more types of "credit enhancement." Such
credit enhancements fall generally into two categories; (1)
liquidity protection and (2) protection against losses resulting
after default by a borrower and liquidation of the collateral.
Liquidity protection refers to the providing of cash advances to
holders of mortgage-backed securities when a borrower on an
underlying mortgage fails to make its monthly payment on time.
Protection against losses resulting after default and liquidation
is designed to cover losses resulting when, for example, the
proceeds of a foreclosure sale are insufficient to cover the
outstanding amount on the mortgage. Such protection may be
provided through guarantees, insurance policies or letters of
credit, through various means of structuring the transaction or
through a combination of such approaches.
Collateralized Mortgage-Backed Obligations ("CMOs"). Total
Return Portfolio, and Government Securities Portfolio and each of
the LifeSpan Portfolios may invest in collateralized mortgage
obligations ("CMOs"). CMOs are fully-collateralized bonds that are
the general obligations of the issuer thereof, either the U.S.
Government, a U.S. Government instrumentality, or a private issuer,
which may be a domestic or foreign corporation. Such bonds
generally are secured by an assignment to a trustee (under the
indenture pursuant to which the bonds are issued) of collateral
consisting of a pool of mortgages. Payments with respect to the
underlying mortgages generally are made to the trustee under the
indenture. Payments of principal and interest on the underlying
mortgages are not passed through to the holders of the CMOs as such
(i.e., the character of payments of principal and interest is not
passed through, and therefore payments to holders of CMOs
attributable to interest paid and principal repaid on the
underlying mortgages do not necessarily constitute income and
return of capital, respectively, to such holders), but such
payments are dedicated to payment of interest on and repayment of
principal of the CMOs. CMOs often are issued in two or more
classes with different characteristics such as varying maturities
and stated rates of interest. Because interest and principal
payments on the underlying mortgages are not passed through to
holders of CMOs, CMOs of varying maturities may be secured by the
same pool of mortgages, the payments on which are used to pay
interest on each class and to retire successive maturities in
sequence. Unlike other mortgage-backed securities (discussed
above), CMOs are designed to be retired as the underlying mortgages
are repaid. In the event of prepayment on such mortgages, the
class of CMO first to mature generally will be paid down.
Therefore, although in most cases the issuer of CMOs will not
supply additional collateral in the event of such prepayment, there
will be sufficient collateral to secure CMOs that remain
outstanding.
"Stripped" Mortgage-Backed Securities. The Total Return
Portfolio, and Government Securities Portfolio and each LifeSpan
Portfolio may invest in "stripped" mortgage-backed securities, in
which the principal and interest portions of the security are
separated and sold. Stripped mortgage-backed securities usually
have at least two classes, each of which receives different
proportions of interest and principal distributions on the
underlying pool of mortgage assets. One common variety of stripped
mortgage-backed security has one class that receives some of the
interest and most of the principal, while the other class receives
most of the interest and remainder of the principal. In some
cases, one class will receive all of the interest (the "interest-
only" or "IO" class), while the other class will receive all of the
principal (the "principal-only" or "PO" class).
Interest only securities are extremely sensitive to interest
rate changes, and prepayments of principal on the underlying
mortgage assets. An increase in principal payments or prepayments
will reduce the income available from the IO security. In
accordance with a requirement imposed by the staff of the SEC, the
Manager or the relevant Subadviser will consider privately-issued
fixed rate IOs and POs to be illiquid securities for purposes of a
Portfolio's limitation on investments in illiquid securities.
Unless the Manager or the relevant Subadviser, acting pursuant to
guidelines and standards established by the Board of Directors,
determines that a particular government-issued fixed rate IO or PO
is liquid, they will also consider these IOs and POs to be
illiquid. In other types of CMOs, the underlying principal
payments may apply to various classes in a particular order, and
therefore the value of certain classes or "branches" of such
securities may be more volatile than the value of the pool as a
whole, and losses may be more severe than on other classes.
Custodial Receipts. In addition to stripped mortgage-backed
securities, each of the Portfolios may acquire U.S. Government
Securities and their unmatured interest coupons that have been
separated (stripped) by their holder, typically a custodian bank or
investment brokerage firm. Having separated the interest coupons
from the underlying principal of the U.S. Government Securities,
the holder will resell the stripped securities in custodial receipt
programs with a number of different names, including Treasury
Income Growth Receipts (TIGRs) and Certificate of Accrual on
Treasury Securities (CATS). The stripped coupons are sold
separately from the underlying principal, which is usually sold at
a deep discount because the buyer receives only the right to
receive a future fixed payment on the security and does not receive
any rights to periodic interest (cash) payments. The underlying
U.S. Treasury bonds and notes themselves are generally held in
book-entry form at a Federal Reserve Bank.
Counsel to the underwriters of these certificates or other
evidences of ownership of U.S. Treasury securities have stated
that, in their opinion, purchasers of the stripped securities most
likely will be deemed the beneficial holders of the underlying U.S.
Government Securities for federal tax and securities purposes. In
the case of CATS and TIGRs, the IRS has reached this conclusion for
the purpose of applying the tax diversification requirements
applicable to regulated investment companies such as the
Portfolios. CATS and TIGRs are not considered U.S. Government
Securities by the staff of the SEC, however. Further, the IRS'
conclusion is contained only in a general counsel memorandum, which
is an internal document of no precedential value or binding effect,
and a private letter ruling, which also may not be relied upon by
the Portfolios. The Company is not aware of any binding
legislative, judicial or administrative authority on this issue.
Asset-Backed Securities. (All Portfolios except, Growth
Portfolio and International Equity Portfolio). The value of an
asset-backed security is affected by changes in the market's
perception of the asset backing the security, the creditworthiness
of the servicing agent for the loan pool, the originator of the
loans, or the financial institution providing any credit
enhancement, and is also affected if any credit enhancement has
been exhausted. The risks of investing in asset-backed securities
are ultimately dependent upon payment of consumer loans by the
individual borrowers. As a purchaser of an asset-backed security,
a Portfolio would generally have no recourse to the entity that
originated the loans in the event of default by a borrower. The
underlying loans are subject to prepayments, which shorten the
weighted average life of asset-backed securities and may lower
their return, in the same manner as described above for the
prepayments of a pool of mortgage loans underlying mortgage-backed
securities.
Mortgage Dollar Rolls. The Total Return Portfolio, and
Government Securities Portfolio may enter into "forward roll"
transactions with respect to mortgage-backed securities issued by
GNMA, FNMA or FHLMC. In a forward roll transaction, which is
considered to be a "borrowing" by a Portfolio, a Portfolio will
sell a mortgage security to a bank or other permitted entity and
simultaneously agree to repurchase a similar security from the
institution at a later date at an agreed upon price. The mortgage
securities that are repurchased will bear the same interest rate as
those sold, but generally will be collateralized by different pools
of mortgages with different prepayment histories than those sold.
Risks of mortgage-backed security rolls include: (i) the risk of
prepayment prior to maturity, (ii) the possibility that the
proceeds of the sale may have to be invested in money market
instruments (typically repurchase agreements) maturing not later
than the expiration of the roll, and (iii) the possibility that the
market value of the securities sold by a Portfolio may decline
below the price at which the Portfolio is obligated to purchase the
securities. Upon entering into a mortgage-backed security roll, a
Portfolio will be required to place cash, U.S. Government
Securities or other high-grade debt securities in a segregated
account with its Custodian in an amount equal to its obligation
under the roll.
High Yield Securities (All Portfolios). A Portfolio may
invest in high-yield/high risk securities (commonly called junk
bonds).
The Manager does not rely solely on credit ratings assigned by
rating agencies in assessing investment opportunities in debt
securities. Ratings by credit agencies assess safety of principal
and interest payments and do not reflect market risks. In
addition, ratings by credit agencies may not be changed by the
agencies in a timely manner to reflect subsequent economic events.
By carefully selecting individual issues and diversifying portfolio
holdings by industry sector and issuer, the Manager believes that
the risk of the Portfolio holding defaulted lower grade securities
can be reduced. Emphasis on credit risk management involves the
Manager's own internal analysis to determine the debt service
capability, financial flexibility and liquidity of an issuer, as
well as the fundamental trends and outlook for the issuer and its
industry. The Manager's rating helps it determine the
attractiveness of specific issues relative to the valuation by the
market place of similarly rated credits.
Special Risks of Lower Rated Securities. High yield, lower-
grade securities, whether rated or unrated, often have speculative
characteristics. Lower-grade securities have special risks that
make them riskier investments than investment grade securities.
They may be subject to limited liquidity and secondary market
support, as well as substantial market price volatility resulting
from changes in prevailing interest rates. They may be
subordinated to the prior claims of banks and other senior lenders.
The operation of mandatory sinking fund or call/redemption
provisions during periods of declining interest rates may cause the
Portfolio to invest premature redemption proceeds in lower yielding
portfolio securities. There is a possibility that earnings of the
issuer may be insufficient to meet its debt service, and the issuer
may have low creditworthiness and potential for insolvency during
periods of rising interest rates and economic downturn. As a
result of the limited liquidity of some high yield securities,
their prices have at times experienced significant and rapid
decline when a substantial number of holders decided to sell. A
decline is also likely in the high yield bond market during an
economic downturn. An economic downturn or an increase in interest
rates could severely disrupt the market for high yield bonds and
adversely affect the value of outstanding bonds and the ability of
the issuers to repay principal and interest. In addition, there
have been several Congressional attempts to limit the use of tax
and other advantages of high yield bonds which, if enacted, could
adversely affect the value of these securities and the net asset
value of a Portfolio. For example, federally-insured savings and
loan associations have been required to divest their investments in
high yield bonds.
Zero Coupon Securities and Deferred Interest Bonds. The
Portfolios may invest in zero coupon securities and deferred
interest bonds issued by the U.S. Treasury or by private issuers
such as domestic or foreign corporations. Zero coupon U.S.
Treasury securities include: (1) U.S. Treasury bills without
interest coupons, (2) U.S. Treasury notes and bonds that have been
stripped of their unmatured interest coupons and (3) receipts or
certificates representing interests in such stripped debt
obligations or coupons. Zero coupon securities and deferred
interest bonds usually trade at a deep discount from their face or
par value and will be subject to greater fluctuations in market
value in response to changing interest rates than debt obligations
of comparable maturities that make current payments of interest.
An additional risk of private-issuer zero coupon securities and
deferred interest bonds is the credit risk that the issuer will be
unable to make payment at maturity of the obligation.
While zero coupon bonds do not require the periodic payment of
interest, deferred interest bonds generally provide for a period of
delay before the regular payment of interest begins. Although this
period of delay is different for each deferred interest bond, a
typical period is approximately one-third of the bond's term to
maturity. Such investments benefit the issuer by mitigating its
initial need for cash to meet debt service, but some also provide
a higher rate of return to attract investors who are willing to
defer receipt of such cash. With zero coupon securities, however,
the lack of periodic interest payments means that the interest rate
is "locked in" and the investor avoids the risk of having to
reinvest periodic interest payments in securities having lower
rates.
Because a Portfolio accrues taxable income from zero coupon
and deferred interest securities without receiving cash and is
required to distribute its net investment income for each taxable
year, including such accrued income, in order to avoid liability
for federal income tax, a Portfolio may be required to sell
portfolio securities in order to obtain cash necessary to pay
dividends or redemption proceeds for its shares, which require the
payment of cash. This will depend on several factors: the
proportion of shareholders who elect to receive dividends in cash
rather than reinvesting dividends in additional shares of a
Portfolio, and the amount of cash a Portfolio receives from other
investments and the sale of shares.
Short Term Debt Securities
Commercial Paper (All Portfolios). Each Portfolio may
purchase commercial paper for temporary defensive purposes as
described in the Prospectus. In addition, a Portfolio may invest
in floating rate notes as follows:
Floating Rate/Variable Rate Notes. Government Securities
Portfolio, Total Return Portfolio and the LifeSpan Portfolios may
purchase floating rate/variable rate notes. Some of the notes a
Portfolio may purchase may have variable or floating interest
rates. Variable rates are adjustable at stated periodic intervals;
floating rates are automatically adjusted according to a specified
market rate for such investments, such as the percentage of the
prime rate of a bank, or the 91-day U.S. Treasury Bill rate. Such
obligations may be secured by bank letters of credit or other
support arrangements. Any bank providing such a bank letter, line
of credit, guarantee or loan commitment will meet a Portfolio's
investment quality standards relating to investments in bank
obligations.
A Portfolio will invest in variable and floating rate
instruments only when the Manager or relevant Subadviser deems the
investment to meet the investment guidelines applicable to a
Portfolio. The Manager or relevant Subadviser will also
continuously monitor the creditworthiness of issuers of such
instruments to determine whether a Portfolio should continue to
hold the investments.
The absence of an active secondary market for certain variable
and floating rate notes could make it difficult to dispose of the
instruments, and a Portfolio could suffer a loss if the issuer
defaults or during periods in which the Portfolio is not entitled
to exercise its demand rights.
Variable and floating rate instruments held by a Portfolio
will be subject to the Portfolio's limitation on investments in
illiquid securities when a reliable trading market for the
instruments does not exist and the Portfolio may not demand payment
of the principal amount of such instruments within seven days.
Bank Obligations and Instruments Secured Thereby (All
Portfolios). The bank obligations a Portfolio may invest in
include time deposits, certificates of deposit, and bankers'
acceptances if they are: (i) obligations of a domestic bank with
total assets of at least $1 billion or (ii) obligations of a
foreign bank with total assets of at least U.S. $1 billion. A
Portfolio may also invest in instruments secured by such
obligations (e.g., debt which is guaranteed by the bank). For
purposes of this section, the term "bank" includes commercial
banks, savings banks, and savings and loan associations which may
or may not be members of the Federal Deposit Insurance Corporation.
Time deposits are non-negotiable deposits in a bank for a
specified period of time at a stated interest rate, whether or not
subject to withdrawal penalties. However, time deposits that are
subject to withdrawal penalties, other than those maturing in seven
days or less, are subject to the limitation on investments by a
Portfolio in illiquid investments, set forth in the Prospectus
under "Illiquid and Restricted Securities."
Banker's acceptances are marketable short-term credit
instruments used to finance the import, export, transfer or storage
of goods. They are deemed "accepted" when a bank guarantees their
payment at maturity.
Warrants and Rights (All Portfolios except Government Securities
Portfolio). Warrants are options to purchase equity securities at
set prices valid for a specified period of time. The prices of
warrants do not necessarily move in a manner parallel to the prices
of the underlying securities. The price a Portfolio pays for a
warrant will be lost unless the warrant is exercised prior to its
expiration. Rights are similar to warrants, but normally have a
short duration and are distributed directly by the issuer to its
shareholders. Rights and warrants have no voting rights, receive
no dividends and have no rights with respect to the assets of the
issuer.
Preferred Stock (All Portfolios except Government Securities
Portfolio). Preferred stocks are equity securities, but possess
certain attributes of debt securities and are generally considered
fixed income securities. Holders of preferred stocks normally have
the right to receive dividends at a fixed rate when and as declared
by the issuer's board of directors, but do not participate in other
amounts available for distribution by the issuing corporation.
Dividends on the preferred stock may be cumulative, and all
cumulative dividends usually must be paid prior to dividend
payments to common stockholders. Because of this preference,
preferred stocks generally entail less risk than common stocks.
Upon liquidation, preferred stocks are entitled to a specified
liquidation preference, which is generally the same as the par or
stated value, and are senior in right of payment to common stocks.
However, preferred stocks are equity securities in that they do not
represent a liability of the issuer and therefore do not offer as
great a degree of protection of capital or assurance of continued
income as investments in corporate debt securities. In addition,
preferred stocks are subordinated in right of payment to all debt
obligations and creditors of the issuer, and convertible preferred
stocks may be subordinated to other preferred stock of the same
issuer.
Loans of Portfolio Securities. Each Portfolio may lend its
portfolio securities (other than in repurchase transactions) to
brokers, dealers and other financial institutions subject to the
restrictions stated in the Prospectus. Under applicable regulatory
requirements (which are subject to change), the loan collateral
must, on each business day, at least equal the market value of the
loaned securities and must consist of cash, bank letters of credit,
U.S. Government Securities, or other cash equivalents in which the
Portfolio is permitted to invest. To be acceptable as collateral,
letters of credit must obligate a bank to pay amounts demanded by
the Portfolio if the demand meets the terms of the letter. Such
terms and the issuing bank must be satisfactory to the Portfolio.
In a portfolio securities lending transaction, the Portfolio
receives from the borrower an amount equal to the interest paid or
the dividends declared on the loaned securities during the term of
the loan as well as the interest on the collateral securities, less
any finders', administrative or other fees the Portfolio pays in
connection with the loan. The Portfolio may share the interest it
receives on the collateral securities with the borrower as long as
it realizes at least a minimum amount of interest required by the
lending guidelines established by the Board of Directors. A
Portfolio will not lend its portfolio securities to any officer,
director, employee or affiliate of the Portfolio, the Manager or
any Subadviser. The terms of a Portfolio's loans must meet certain
tests under the Internal Revenue Code and permit the Portfolio to
reacquire loaned securities on five business days' notice or in
time to vote on any important matter.
"When-Issued" and Delayed Delivery Transactions. (All Portfolios).
Securities may be purchased by a Portfolio on a "when-issued" or on
a "forward commitment" basis. These transactions, which involve a
commitment by a Portfolio to purchase or sell particular securities
with payment and delivery taking place at a future date (perhaps
one or two months later), permit the Portfolio to lock in a price
or yield on a security, regardless of future changes in interest
rates. A Portfolio will purchase securities on a "when-issued" or
forward commitment basis only with the intention of completing the
transaction and actually purchasing the securities. If deemed
appropriate by the Manager or, in the case of the LifeSpan
Portfolios and the International Equity Portfolio, the relevant
Subadviser, however, a Portfolio may dispose of or renegotiate a
commitment after it is entered into, and may sell securities it has
committed to purchase before those securities are delivered to the
Portfolio on the settlement date. In these cases, the Portfolio
may realize a gain or loss.
When a Portfolio agrees to purchase securities on a "when-
issued" or forward commitment basis, the Portfolio's custodian will
set aside cash or High Grade Debt Securities equal to the amount of
the commitment in a separate account. Normally, the custodian will
set aside portfolio securities to satisfy a purchase commitment,
and in such a case the Portfolio may be required subsequently to
place additional assets in the separate account in order to ensure
that the value of the account remains equal to the amount of the
Portfolio's commitments. The market value of a Portfolio's net
assets may fluctuate to a greater degree when it sets aside
portfolio securities to cover such purchase commitments then when
it sets aside cash. Because a Portfolio's liquidity and ability to
manage its portfolio might be affected when it sets aside cash or
portfolio securities to cover such purchase commitments, each
Portfolio expects that its commitments to purchase when-issued
securities and forward commitments will not exceed 33% of the value
of its total assets absent unusual market conditions. When a
Portfolio engages in "when-issued" and forward commitment
transactions, it relies on the other party to the transaction to
consummate the trade. Failure of such party to do so may result in
the Portfolio incurring a loss or missing an opportunity to obtain
a price considered to be advantageous.
The market value of the securities underlying a "when-issued"
purchase or a forward commitment to purchase securities, and any
subsequent fluctuations in their market value, are taken into
account when determining the market value of a Portfolio starting
on the day the Portfolio agrees to purchase the securities. The
Portfolio does not earn interest or dividends on the securities it
has committed to purchase until the settlement date.
Repurchase Agreements. Each Portfolio may acquire securities that
are subject to repurchase agreements, in order to generate income
while providing liquidity. In a repurchase transaction, the
Portfolio acquires a security from, and simultaneously resells it
to, an approved vendor for delivery on an agreed-upon future date.
An "approved vendor" is a U.S. commercial bank, the U.S. branch of
a foreign bank or a broker-dealer which has been designated a
primary dealer in government securities, which must meet the credit
requirements set by the Portfolio's Board of Directors from time to
time. The sale price exceeds the purchase price by an amount that
reflects an agreed-upon interest rate effective for the period
during which the repurchase agreement is in effect. The majority
of these transactions run from day to day, and delivery pursuant to
resale typically will occur within one to five days of the
purchase. Repurchase agreements are considered "loans" under the
Investment Company Act collateralized by the underlying security.
The Portfolio's repurchase agreements will require that at all
times while the repurchase agreement is in effect, the collateral's
value must equal or exceed the repurchase price to fully
collateralize the repayment obligation. Additionally, the Manager
or relevant Subadviser will impose creditworthiness requirements to
confirm that the vendor is financially sound and will continuously
monitor the collateral's value. If the vendor of a repurchase
agreement fails to pay the agreed-upon resale price on the delivery
date, the Portfolio's risks in such event may include any costs of
disposing of the collateral, and any loss from any delay in
foreclosing on the collateral.
Reverse Repurchase Agreements. The LifeSpan Portfolios are
permitted to engage in reverse repurchase transactions but have no
current intention to do so. A LifeSpan Portfolio that does so will
maintain, in a segregated account with its Custodian, cash,
Treasury bills or other U.S. Government Securities having an
aggregate value equal to the amount of such commitment to
repurchase, including accrued interest, until payment is made. The
Portfolio will use reverse repurchase agreements as a source of
funds on a short-term basis (and not for leverage). In determining
whether to enter into a reverse repurchase agreement with a bank or
broker-dealer, the Portfolio will take into account the
creditworthiness of such party.
Restricted and Illiquid Securities. To enable each Portfolio to
sell restricted securities not registered under the Securities Act
of 1933, the Portfolio may have to cause those securities to be
registered. The expenses of registration of restricted securities
may be negotiated by the Portfolio with the issuer at the time such
securities are purchased by the Portfolio, if such registration is
required before such securities may be sold publicly. When
registration must be arranged because the Portfolio wishes to sell
the security, a considerable period may elapse between the time the
decision is made to sell the securities and the time the Portfolio
would be permitted to sell them. The Portfolio would bear the
risks of any downward price fluctuation during that period. A
Portfolio may also acquire, through private placements, securities
having contractual restrictions on their resale, which might limit
the Portfolio's ability to dispose of such securities and might
lower the amount realized upon the sale of such securities.
Hedging. (All Portfolios). Consistent with the limitations set
forth in the Prospectus and below, a Portfolio may employ one or
more of the types of hedging instruments described below. In the
future, a Portfolio may employ hedging instruments and strategies
that are not presently contemplated but which may be developed, to
the extent such investment methods are consistent with the
Portfolio's investment objective, legally permissible and
adequately disclosed.
Hedging Strategies. Hedging, by use of futures contracts,
seeks to establish with more certainty the effective price and rate
of return on portfolio securities and securities that a Portfolio
proposes to acquire. The Portfolios may, for example, take a
"short" position in the futures market by selling futures contracts
in order to hedge against an anticipated rise in interest rates or
a decline in market prices that would adversely affect the value of
a Portfolio's portfolio securities. Such futures contracts may
include contracts for the future delivery of securities held by the
Portfolio or securities with characteristics similar to those of
the Portfolio's portfolio securities.
If, in the opinion of the Portfolio's Manager or, in the case
of the LifeSpan Portfolios and the International Equity Portfolio,
the relevant Subadviser, there is a sufficient degree of
correlation between price trends for a Portfolio's portfolio
securities and futures contracts based on other financial
instruments, securities indices or other indices, the Portfolio may
also enter into such futures contracts as part of its hedging
strategy. Although under some circumstances prices of securities
in a Portfolio's portfolio may be more or less volatile than prices
of such futures contracts, the Manager or, in the case of the
LifeSpan Portfolios and the International Equity Portfolio, the
relevant Subadviser will attempt to estimate the extent of this
volatility difference based on historical patterns and compensate
for any such differential by having the Portfolio enter into a
greater or lesser number of futures contracts or by attempting to
achieve only a partial hedge against price changes affecting a
Portfolio's securities portfolio. When hedging of this character
is successful, any depreciation in the value of portfolio
securities will be substantially offset by appreciation in the
value of the futures position. On the other hand, any
unanticipated appreciation in the value of a Portfolio's portfolio
securities would be substantially offset by a decline in the value
of the futures position.
On other occasions, the Portfolios may take a "long" position
by purchasing futures contracts. This would be done, for example,
when a Portfolio anticipates the subsequent purchase of particular
securities when it has the necessary cash, but expects the prices
then available in the applicable market to be less favorable than
prices that are currently available.
Futures Contracts and Related Options. To hedge against
changes in interest rates, securities prices or currency exchange
rates, each Portfolio may, subject to its investment objectives and
policies, purchase and sell various kinds of futures contracts and
write covered call options on such contracts. The International
Equity Portfolio and the Government Securities Portfolio may also
purchase and sell call and put options on such futures contracts.
A Portfolio may also enter into closing purchase and sale
transactions with respect to any of these contracts and options.
The Total Return Portfolio, the International Equity Portfolio, the
Growth Portfolio and the Government Securities Portfolio may
purchase and sell stock index futures contracts; and the Total
Return Portfolio, International Equity Portfolio, and the
Government Securities Portfolio may purchase and sell interest rate
future contracts. In addition, each Portfolio that may invest in
securities that are denominated in a foreign currency may purchase
and sell futures on currencies. The International Equity Portfolio
may purchase and sell options on futures on currencies. A
Portfolio will engage in futures and related options transactions
only for bona fide hedging purposes as defined in regulations
promulgated by the CFTC. All futures contracts entered into by the
Portfolios are traded on U.S. exchanges or boards of trade that are
licensed and regulated by the CFTC or on foreign exchanges approved
by the CFTC.
Total Return Portfolio, International Equity Portfolio and
Government Securities Portfolio may buy and sell futures contracts
on interest rates ("Interest Rate Futures"). No price is paid or
received upon the purchase or sale of an Interest Rate Future. An
Interest Rate Future obligates the seller to deliver and the
purchaser to take a specific type of debt security at a specific
future date for a fixed price. That obligation may be satisfied by
actual delivery of the debt security or by entering into an
offsetting contract.
Total Return Portfolio, International Equity Portfolio and
Government Securities Portfolio may buy and sell futures contracts
related to financial indices (a "Financial Future"). A financial
index assigns relative values to the securities included in the
index and fluctuates with the changes in the market value of those
securities. Financial indices cannot be purchased or sold
directly. The contracts obligate the seller to deliver, and the
purchaser to take, cash to settle the futures transaction or to
enter into an offsetting contract. No physical delivery of the
securities underlying the index is made on settling the futures
obligation. No price is paid or received by a Portfolio on the
purchase or sale of a Financial Future.
Upon entering into a futures transaction, a Portfolio will be
required to deposit an initial margin payment in cash or U.S.
Treasury bills with the futures commission merchant (the "futures
broker"). The initial margin will be deposited with a Portfolio's
Custodian in an account registered in the futures broker's name;
however the futures broker can gain access to that account only
under specified conditions. As the Future is marked to market to
reflect changes in its market value, subsequent margin payments,
called variation margin, will be made to or by the futures broker
on a daily basis. Prior to expiration of the Future, if a
Portfolio elects to close out its position by taking an opposite
position, a final determination of variation margin is made and
additional cash is required to be paid by or released to the
Portfolio. Although Financial Futures and Interest Rate Futures by
their terms call for settlement by delivery of cash or securities,
respectively, in most cases the obligation is fulfilled by entering
into an offsetting position. All futures transactions are effected
through a clearinghouse associated with the exchange on which the
contracts are traded.
Options on Futures Contracts. The Portfolios may use options
on futures contracts solely for bona fide hedging purposes as
described below. The writing of a call option on a futures
contract generates a premium which may partially offset a decline
in the value of a Portfolio's assets. By writing a call option, a
Portfolio becomes obligated, in exchange for the premium, to sell
a futures contract (if the option is exercised), which may have a
value higher than the exercise price. Conversely, the writing of
a put option on a futures contract generates a premium which may
partially offset an increase in the price of securities that a
Portfolio intends to purchase. However, a Portfolio becomes
obligated to purchase a futures contract (if the option is
exercised) which may have a value lower than the exercise price.
Thus, the loss incurred by a Portfolio in writing options on
futures is potentially unlimited and may exceed the amount of the
premium received. The Portfolios will incur transaction costs in
connection with the writing of options on futures.
The holder or writer of an option on a futures contract may
terminate its position by selling or purchasing an offsetting
option on the same series. There is no guarantee that such closing
transactions can be effected. The Portfolios' ability to establish
and close out positions on such options will be subject to the
development and maintenance of a liquid market.
Options on Securities, Securities Indices and Foreign
Currencies. Each Portfolio may write covered call options. In
addition, the International Equity Portfolio and the Government
Securities Portfolio may purchase covered call options. Such
options may relate to particular U.S. or non-U.S. securities, to
various U.S. or non-U.S. stock indices or to U.S. or non-U.S.
currencies. To the extent that a Portfolio engages in options
transactions, the Portfolio may purchase and write call options
which are issued by the Options Clearing Corporation (the "OCC") or
which are traded on U.S. and non-U.S. exchanges. The International
Equity Portfolio may purchase options on currency in the over-the-
counter markets ("OTC Markets").
Writing Covered Calls. When a Portfolio writes a call on an
investment, it receives a premium and agrees to sell the callable
investment to a purchaser of a corresponding call on the same
investment if the option is exercised during the call period
(usually not more than nine months) at a fixed exercise price
(which may differ from the market price of the underlying
investment), regardless of market price changes during the call
period. A Portfolio retains the risk of loss should the price of
the underlying investment decline during the call period, which may
be offset to some extent by the premium.
To terminate its obligation on a call it has written, a
Portfolio may purchase a corresponding call in a "closing purchase
transaction." A profit or loss will be realized, depending upon
whether the net of the amount of the option transaction costs and
the premium received on the call written was more or less than the
price of the call subsequently purchased. A profit may also be
realized if the call expires unexercised, because a Portfolio
retains the underlying investment and the premium received. If a
Portfolio could not effect a closing purchase transaction due to
lack of a market, it would have to hold the callable investments
until the call lapsed or was exercised.
Purchasing Covered Calls. When a Portfolio purchases a call
(other than in a closing purchase transaction), it pays a premium
and, except as to calls on indices or futures, has the right to buy
the underlying investment from a seller of a corresponding call on
the same investment during the call period at a fixed exercise
price. When a Portfolio purchases a call on a securities index or
future, it pays a premium, but settlement is in cash rather than by
delivery of the underlying investment to the Portfolio. In
purchasing a call, a Portfolio benefits only if the call is sold at
a profit or if, during the call period, the market price of the
underlying investment is above the sum of the exercise price,
transaction costs and the premium paid, and the call is exercised.
If the call is neither exercised nor sold (whether or not at a
profit), it will become worthless at its expiration date and the
Portfolio will lose its premium payment and the right to purchase
the underlying investment.
Calls on broadly-based indices or futures are similar to calls
on securities or futures contracts except that all settlements are
in cash and gain or loss depends on changes in the index in
question (and thus on price movements in the underlying market
generally) rather than on price movements in individual securities
or futures contracts. When a Portfolio buys a call on an index or
future, it pays a premium. During the call period, upon exercise
of a call by a Portfolio, a seller of a corresponding call on the
same investment will pay the Portfolio an amount of cash to settle
the call if the closing level of the index or future upon which the
call is based is greater than the exercise price of the call. That
cash payment is equal to the difference between the closing price
of the index and the exercise price of the call times a specified
multiple (the "multiplier"), which determines the total dollar
value for each point of difference.
An option position may be closed out only on a market which
provides secondary trading for options of the same series and there
is no assurance that a liquid secondary market will exist for any
particular option. A Portfolio's option activities may affect its
turnover rate and brokerage commissions. A Portfolio may pay a
brokerage commission each time it buys a call, sells a call, or
buys or sells an underlying investment in connection with the
exercise of a call. Such commissions may be higher than those
which would apply to direct purchases or sales of such underlying
investments. Premiums paid for options are small in relation to
the market value of the related investments, and consequently, call
options offer large amounts of leverage. The leverage offered by
trading in options could result in a Portfolio's net asset value
being more sensitive to changes in the value of the underlying
investments.
Forward Contracts. Each Portfolio (except the Government
Securities Portfolio) may enter into foreign currency exchange
contracts ("Forward Contracts") for hedging and non-hedging
purposes. A forward currency exchange contract generally has no
deposit requirement, and no commissions are generally charged at
any stage for trades. A Forward Contract involves bilateral
obligations of one party to purchase, and another party to sell, a
specific currency at a future date (which may be any fixed number
of days from the date of the contract agreed upon by the parties),
at a price set at the time the contract is entered into. A
Portfolio generally will not enter into a forward currency exchange
contract with a term of greater than one year. These contracts are
traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers.
A Portfolio may use Forward Contracts to protect against
uncertainty in the level of future exchange rates. The use of
Forward Contracts does not eliminate fluctuations in the prices of
the underlying securities a Portfolio owns or intends to acquire,
but it does fix a rate of exchange in advance. In addition,
although Forward Contracts limit the risk of loss due to a decline
in the value of the hedged currencies, at the same time they limit
any potential gain that might result should the value of the
currencies increase.
A Portfolio may enter into Forward Contracts with respect to
specific transactions. For example, when a Portfolio enters into
a contract for the purchase or sale of a security denominated in a
foreign currency, or when it anticipates receipt of dividend
payments in a foreign currency, a Portfolio may desire to "lock-in"
the U.S. dollar price of the security or the U.S. dollar equivalent
of such payment by entering into a Forward Contract, for a fixed
amount of U.S. dollars per unit of foreign currency, for the
purchase or sale of the amount of foreign currency involved in the
underlying transaction ("transaction hedge"). A Portfolio will
thereby be able to protect itself against a possible loss resulting
from an adverse change in the relationship between the currency
exchange rates during the period between the date on which the
security is purchased or sold, or on which the payment is declared,
and the date on which such payments are made or received.
A Portfolio may also use Forward Contracts to lock in the U.S.
dollar value of portfolio positions ("position hedge"). In a
position hedge, for example, when a Portfolio believes that foreign
currency may suffer a substantial decline against the U.S. dollar,
it may enter into a forward sale contract to sell an amount of that
foreign currency approximating the value of some or all of a
Portfolio's portfolio securities denominated in such foreign
currency, or when it believes that the U.S. dollar may suffer a
substantial decline against a foreign currency, it may enter into
a forward purchase contract to buy that foreign currency for a
fixed dollar amount. In this situation a Portfolio may, in the
alternative, enter into a Forward Contract to sell a different
foreign currency for a fixed U.S. dollar amount where the Portfolio
believes that the U.S. dollar value of the currency to be sold
pursuant to the Forward Contract will fall whenever there is a
decline in the U.S. dollar value of the currency in which portfolio
securities of the Portfolio are denominated ("cross hedge").
A Portfolio will not enter into such Forward Contracts or
maintain a net exposure to such contracts where the consummation of
the contracts would obligate the Portfolio to deliver an amount of
foreign currency in excess of the value of the Portfolio's
portfolio securities or other assets denominated in that currency
or another currency that is also the subject of the hedge.
However, in order to avoid excess transactions and transaction
costs, a Portfolio may maintain a net exposure to Forward Contracts
in excess of the value of the Portfolio's portfolio securities or
other assets denominated in those currencies provided the excess
amount is "covered" by liquid, high-grade debt securities,
denominated in any currency, at least equal at all times to the
amount of such excess. As an alternative, a LifeSpan Portfolio may
purchase a call option permitting the Portfolio to purchase the
amount of foreign currency being hedged by a forward sale contract
at a price no higher than the forward contract price. A LifeSpan
Portfolio may purchase a put option permitting the Portfolio to
sell the amount of foreign currency subject to a forward purchase
contract at a price as high as or higher than the forward contract
price. Unanticipated changes in currency prices may result in
poorer overall performance for a Portfolio than if it had not
entered into such contracts.
The precise matching of the Forward Contract amounts and the
value of the securities involved will not generally be possible
because the future value of such securities in foreign currencies
will change as a consequence of market movements in the value of
these securities between the date the Forward Contract is entered
into and the date it is sold. Accordingly, it may be necessary for
a Portfolio to purchase additional foreign currency on the spot
(i.e., cash) market (and bear the expense of such purchase), if the
market value of the security is less than the amount of foreign
currency a Portfolio is obligated to deliver and if a decision is
made to sell the security and make delivery of the foreign
currency. Conversely, it may be necessary to sell on the spot
market some of the foreign currency received upon the sale of the
portfolio security if its market value exceeds the amount of
foreign currency a Portfolio is obligated to deliver. The
projection of short-term currency market movements is extremely
difficult, and the successful execution of a short-term hedging
strategy is highly uncertain. Forward Contracts involve the risk
that anticipated currency movements will not be accurately
predicted, causing a Portfolio to sustain losses on these contracts
and transactions costs.
At or before the maturity of a Forward Contract requiring a
Portfolio to sell a currency, a Portfolio may either sell a
portfolio security and use the sale proceeds to make delivery of
the currency or retain the security and offset its contractual
obligation to deliver the currency by purchasing a second contract
pursuant to which the Portfolio will obtain, on the same maturity
date, the same amount of the currency that it is obligated to
deliver. Similarly, a Portfolio may close out a Forward Contract
requiring it to purchase a specified currency by entering into a
second contract entitling it to sell the same amount of the same
currency on the maturity date of the first contract. The Portfolio
would realize a gain or loss as a result of entering into such an
offsetting Forward Contract under either circumstance to the extent
the exchange rate or rates between the currencies involved moved
between the execution dates of the first contract and offsetting
contract.
The cost to a Portfolio of engaging in Forward Contracts
varies with factors such as the currencies involved, the length of
the contract period and the market conditions then prevailing.
Because Forward Contracts are usually entered into on a principal
basis, no fees or commissions are involved. Because such contracts
are not traded on an exchange, a Portfolio must evaluate the credit
and performance risk of each particular counter party under a
Forward Contract.
Although a Portfolio values its assets daily in terms of U.S.
dollars, it does not intend to convert its holdings of foreign
currencies into U.S. dollars on a daily basis. A Portfolio may
convert foreign currency from time to time, and there are costs of
currency conversion. Foreign exchange dealers do not charge a fee
for conversion, but they do seek to realize a profit based on the
difference between the prices at which they buy and sell various
currencies. Thus, a dealer may offer to sell a foreign currency to
a Portfolio at one rate, while offering a lesser rate of exchange
should a Portfolio desire to resell that currency to the dealer.
Interest Rate Swap Transactions. Government Securities
Portfolio and the LifeSpan Portfolios may enter into swap
transactions. A Portfolio will enter into swap transactions with
appropriate counterparties pursuant to master netting agreements.
A master netting agreement provides that all swaps done between a
Portfolio and that counterparty under that master agreement shall
be regarded as parts of an integral agreement. If on any date
amounts are payable in the same currency in respect of one or more
swap transactions, the net amount payable on that date in that
currency shall be paid. In addition, the master netting agreement
may provide that if one party defaults generally or on one swap,
the counterparty may terminate the swaps with that party. Under
such agreements, if there is a default resulting in a loss to one
party, the measure of that party's damages is calculated by
reference to the average cost of a replacement swap with respect to
each swap (i.e., the mark-to-market value at the time of the
termination of each swap). The gains and losses on all swaps are
then netted, and the result is the counterparty's gain or loss on
termination. The termination of all swaps and the netting of gains
and losses on termination is generally referred to as
"aggregation."
Swap agreements entail both interest rate risk and credit
risk. There is a risk that, based on movements of interest rates
in the future, the payments made by a Portfolio under a swap
agreement will have been greater than those received by them.
Credit risk arises from the possibility that the counterparty will
default. If the counterparty to an interest rate swap defaults, a
Portfolio's loss will consist of the net amount of contractual
interest payments that the Portfolio has not yet received. The
Manager or relevant Subadviser will monitor the creditworthiness of
counterparties to a Portfolio's interest rate swap transactions on
an ongoing basis.
The swap market has grown substantially in recent years with
a large number of banks and investment banking firms acting both as
principals and as agents utilizing standardized swap documentation.
As a result, the swap market has become relatively liquid in
comparison with the markets for other similar instruments which are
traded in the interbank market. However, the staff of the SEC
currently takes the position that swaps, caps and floors are
illiquid investments that are subject to a limitation on such
investments by investment companies.
Additional Information About Hedging Instruments and Their
Use. A Portfolio's Custodian, or a securities depository acting
for the Custodian, will act as a Portfolio's escrow agent, through
the facilities of the Options Clearing Corporation ("OCC"), as to
the investments on which a Portfolio has written options traded on
exchanges or as to other acceptable escrow securities, so that no
margin will be required for such transactions. OCC will release
the securities covering a call on the expiration of the option or
upon a Portfolio entering into a closing purchase transaction. An
option position may be closed out only on a market which provides
secondary trading for options of the same series, and there is no
assurance that a liquid secondary market will exist for any
particular option.
If International Equity Portfolio writes an over-the-counter
("OTC") option, it will enter into an arrangement with a primary
U.S. Government securities dealer, which would establish a formula
price at which the Portfolio would have the absolute right to
repurchase that OTC option. That formula price would generally be
based on a multiple of the premium received for the option, plus
the amount by which the option is exercisable below the market
price of the underlying security (that is, the extent to which the
option "is in-the-money"). When International Equity Portfolio
writes an OTC option, it will treat as illiquid (for purposes of
the limit on its assets that may be invested in illiquid
securities, stated in the Prospectus) the mark-to-market value of
any OTC option it holds. The SEC is evaluating whether OTC options
should be considered liquid securities, and the procedure described
above could be affected by the outcome of that evaluation.
Regulatory Aspects of Hedging Instruments. The Portfolios are
required to operate within certain guidelines and restrictions with
respect to their use of futures and options thereon as established
by the Commodities Futures Trading Commission ("CFTC"). In
particular, the Portfolios are excluded from registration as a
"commodity pool operator" if they comply with the requirements of
Rule 4.5 adopted by the CFTC. The Rule does not limit the
percentage of the Portfolios' assets that may be used for Futures
margin and related options premiums for a bona fide hedging
position. However, under the Rule a Portfolio must limit its
aggregate initial futures margin and related option premiums to no
more than 5% of the Portfolios' net assets for hedging strategies
that are not considered bona fide hedging strategies under the
Rule.
Transactions in options by the Portfolios are subject to
limitations established by each of the exchanges governing the
maximum number of options which may be written or held by a single
investor or group of investors acting in concert, regardless of
whether the options were written or purchased on the same or
different exchanges or are held in one or more accounts or through
one or more different exchanges through one or more brokers. Thus,
the number of options which the Portfolios may write or hold may be
affected by options written or held by other entities, including
other investment companies having the same or an affiliated
investment adviser. Position limits also apply to Futures. An
exchange may order the liquidation of positions found to be in
violation of those limits and may impose certain other sanctions.
Due to requirements under the Investment Company Act, when the
Portfolios purchase a Future, the Portfolios will maintain, in a
segregated account or accounts with their Custodian, cash or
readily-marketable, short-term (maturing in one year or less) debt
instruments in an amount equal to the market value of the
securities underlying such Future, less the margin deposit
applicable to it.
Tax Aspects of Covered Calls and Hedging Instruments. Each
Portfolio intends to qualify as a "regulated investment company"
under the Internal Revenue Code. That qualification enables a
Portfolio to "pass through" its income and realized capital gains
to shareholders without the Portfolio having to pay tax on them.
One of the tests for a Portfolio's qualification is that less than
30% of its gross income (irrespective of losses) must be derived
from gains realized on the sale of securities or certain other
investments held for less than three months. To comply with that
30% cap, a Portfolio will limit the extent to which it engages in
the following activities, but will not be precluded from them: (i)
selling investments, including Futures, held for less than three
months, whether or not they were purchased on the exercise of a
call held by the Portfolio; (ii) purchasing calls or puts which
expire in less than three months; (iii) effecting closing
transactions with respect to calls or puts written or purchased
less than three months previously; (iv) exercising puts or calls
held by a Portfolio for less than three months; or (v) writing
calls on investments held for less than three months.
Risks Of Hedging With Options and Futures. In addition to the
risks with respect to hedging discussed in the Prospectus and
above, there is a risk in using short hedging by selling Futures to
attempt to protect against a decline in value of a Portfolio's
portfolio securities (due to an increase in interest rates) that
the prices of such Futures will correlate imperfectly with the
behavior of the cash (i.e., market value) prices of a Portfolio's
securities. The ordinary spreads between prices in the cash and
futures markets are subject to distortions due to differences in
the natures of those markets. First, all participants in the
futures markets are subject to margin deposit and maintenance
requirements. Rather than meeting additional margin deposit
requirements, investors may close out futures contracts through
offsetting transactions which could distort the normal relationship
between the cash and futures markets. Second, the liquidity of the
futures markets depends on participants entering into offsetting
transactions rather than making or taking delivery. To the extent
participants decide to make or take delivery, liquidity in the
futures markets could be reduced, thus producing distortion.
Third, from the point of view of speculators, the deposit
requirements in the futures markets are less onerous than margin
requirements in the securities markets. Therefore, increased
participation by speculators in the futures markets may cause
temporary price distortions.
Portfolio Turnover. Each Portfolio's particular portfolio
securities may be changed without regard to the holding period of
these securities (subject to certain tax restrictions), when the
Manager or respective Subadviser deems that this action will help
achieve the Portfolio's objective given a change in an issuer's
operations or changes in general market conditions. Short-term
trading means the purchase and subsequent sale of a security after
it has been held for a relatively brief period of time. The
Portfolios do not generally intend to invest for the purpose of
seeking short-term profits. Variations in portfolio turnover rate
from year to year reflect the investment discipline applied to the
particular Portfolio and do not generally reflect trading for
short-term profits.
Other Investment Restrictions
Investment Restrictions That Are Fundamental Policies. Each
Portfolio has adopted the following investment restrictions that
are "fundamental policies." Each Portfolio's most significant
investment restrictions are also set forth in the Prospectus.
Fundamental policies cannot be changed without the vote of a
"majority" of a Portfolio's outstanding voting securities. Under
the Investment Company Act, such a "majority" vote is defined as
the vote of the holders of the lesser of (i) 67% or more of the
shares present or represented by proxy at a shareholder meeting, if
the holders of more than 50% of the outstanding shares are present,
or (ii) more than 50% of the outstanding shares.
With respect to each Panorama Portfolio, the Company does not
issue senior securities; in addition, except as noted, each
Panorama Portfolio may not:
1. (a) Invest more than 5% of its total assets (taken at market
value at the time of each investment) in the securities (other than
U.S. Government agency securities) of any one issuer (including
repurchase agreements with any one bank); and (b) purchase more
than either (i) 10% of the principal amount of the outstanding debt
securities of an issuer, or (ii) 10% of the outstanding voting
securities of an issuer, except that such restrictions shall not
apply to securities issued or guaranteed by the U.S. Government or
its agencies, bank money instruments or bank repurchase agreements.
(This restriction is not applicable to the Government Securities
Portfolio).
2. Invest more than 25% of its total assets (taken at market
value at the time of each investment) in the securities of issuers
primarily engaged in the same industry. Utilities will be divided
according to their services; for example, gas, gas transmissions,
electric and telephone each will be considered a separate industry
for purposes of this restriction; provided that this limitation
shall not apply to the purchase of obligations issued or guaranteed
by the U.S. Government, its agencies or instrumentalities,
certificates of deposit issued by domestic banks and bankers'
acceptances. (This restriction is not applicable to the
International Equity Portfolio or the Government Securities
Portfolio).
3. Alone, or together with any other Portfolio or Portfolios,
make investments for the purpose of exercising control over, or
management of, any issuer.
4. Purchase securities of other investment companies, except in
connection with a merger, consolidation, acquisition or
reorganization, or by purchase in the open market of securities of
closed-end investment companies where no underwriter or dealer's
commission or profit, other than customary broker's commission, is
involved, and only if immediately thereafter not more than 10% of
such Portfolio's total assets, taken at market value, would be
invested in such securities.
5. Purchase or sell interests in oil, gas or other mineral
exploration or development programs, commodities, commodity
contracts or real estate, except that the Total Return Portfolio,
the International Equity Portfolio, the Growth Portfolio, and the
Government Securities Portfolio each may: (1) purchase securities
of issuers which invest or deal in any of the above and (2) invest
for hedging purposes in futures contracts on securities, financial
instruments and indices, and foreign currency, as are approved for
trading on a registered exchange. The International Equity
Portfolio may also invest in options on foreign futures contracts
on securities, financial instruments and indices and foreign
currency.
6. Purchase any securities on margin (except that the Company may
obtain such short term credits as may be necessary for the
clearance of purchases and sales of portfolio securities) or make
short sales of securities or maintain a short position. The
deposit or payment by a Portfolio of initial or maintenance margin
in connection with futures contracts or related options
transactions is not considered the purchase of a security on
margin.
7. Make loans, except that the Portfolio (1) may lend portfolio
securities in accordance with the Portfolio's investment policies
up to 33 1/3% of the Portfolio's total assets taken at market
value, (2) enter into repurchase agreements, and (3) purchase all
or a portion of an issue of publicly distributed debt securities,
bank loan participation interests, bank certificates of deposit,
bankers' acceptances, debentures or other securities, whether or
not the purchase is made upon the original issuance of the
securities.
8. Borrow amounts in excess of 10% of its total assets, taken at
market value at the time of the borrowing, and then only from banks
as a temporary measure for extraordinary or emergency purposes; or
make investments in portfolio securities while its outstanding
borrowings exceed 5% of its total assets.
9. Mortgage, pledge, hypothecate or in any manner transfer, as
security for indebtedness, any securities owned or held by such
Portfolio except as may be necessary in connection with borrowings
mentioned in (8) above, and then such mortgaging, pledging or
hypothecating may not exceed 10% of such Portfolio's total assets,
taken at market value at the time thereof. The deposit of cash
equivalents and liquid debt securities in a segregated account with
the custodian and/or with a broker in connection with futures
contracts or related options transactions and the purchase of
securities on a "when-issued" basis are not deemed to be pledges.
10. Underwrite securities of other issuers except insofar as the
Portfolio may be deemed an underwriter under the 1933 Act in
selling portfolio securities.
11. Write, purchase or sell puts, calls or combinations thereof,
except that the Total Return Portfolio, and the Growth Portfolio
may write covered call options and engage in closing purchase
transactions. (This restriction is not applicable to the
International Equity Portfolio and the Government Securities
Portfolio.)
12. Invest in securities of foreign issuers if at the time of
acquisition more than 10% of its total assets, taken at market
value at the time of the investment, would be invested in such
securities. However, up to 25% of the total assets of such
Portfolio may be invested in securities (i) issued, assumed or
guaranteed by foreign governments, or political subdivisions or
instrumentalities thereof, (ii) assumed or guaranteed by domestic
issuers, including Eurodollar securities, or (iii) issued, assumed
or guaranteed by foreign issuers having a class of securities
listed for trading on The New York Stock Exchange. (This
restriction is not applicable to the International Equity
Portfolio.)
Each LifeSpan Portfolio may not:
1. Issue senior securities, except as permitted by paragraphs 2,
3, 6 and 7 below. For purposes of this restriction, the issuance
of shares of common stock in multiple classes or series, the
purchase or sale of options, futures contracts and options on
futures contracts, forward commitments and repurchase agreements
entered into in accordance with the Portfolio's investment
policies, are not deemed to be senior securities.
2. Purchase any securities on margin (except that the Company may
obtain such short-term credits as may be necessary for the
clearance of purchases and sales of portfolio securities) or make
short sales of securities or maintain a short position. The
deposit or payment by a Portfolio of initial or maintenance margin
in connection with futures contracts or related options
transactions is not considered the purchase of a security on
margin.
3. Borrow money, except for emergency or extraordinary purposes
including (i) from banks for temporary or short-term purposes or
for the clearance of transactions in amounts not to exceed 33 1/3%
of the value of the Portfolio's total assets (including the amount
borrowed) taken at market value, (ii) in connection with the
redemption of Portfolio shares or to finance failed settlements of
portfolio trades without immediately liquidating portfolio
securities or other assets; and (iii) in order to fulfill
commitments or plans to purchase additional securities pending the
anticipated sale of other portfolio securities or assets, but only
if after each such borrowing there is asset coverage of at least
300% as defined in the Investment Company Act. For purposes of
this investment restriction, reverse repurchase agreements,
mortgage dollar rolls, short sales, futures contracts, options on
futures contracts, securities or indices and forward commitment
transactions shall not constitute borrowing.
4. Act as an underwriter, except to the extent that in connection
with the disposition of portfolio securities, the Portfolio may be
deemed to be an underwriter for purposes of the 1933 Act.
5. Purchase or sell real estate except that the Portfolio may (i)
acquire or lease office space for its own use, (ii) invest in
securities of issuers that invest in real estate or interests
therein, (iii) invest in securities that are secured by real estate
or interests therein, (iv) purchase and sell mortgage-related
securities and (v) hold and sell real estate acquired by the
Portfolio as a result of the ownership of securities.
6. Invest in commodities, except the Portfolio may purchase and
sell options on securities, securities indices and currency,
futures contracts on securities, securities indices and currency
and options on such futures, forward foreign currency exchange
contracts, forward commitments, securities index put or call
options and repurchase agreements entered into in accordance with
the Portfolio's investment policies.
7. Make loans, except that the Portfolio (1) may lend portfolio
securities in accordance with the Portfolio's investment policies
up to 33 1/3% of the Portfolio's total assets taken at market
value, (2) enter into repurchase agreements, and (3) purchase all
or a portion of an issue of publicly distributed bonds, debentures
or other similar obligations.
8. Purchase the securities of issuers conducting their principal
activity in the same industry if, immediately after such purchase,
the value of its investments in such industry would exceed 25% of
its total assets taken at market value at the time of such
investment. This limitation does not apply to investments in
obligations of the U.S. Government or any of its agencies,
instrumentalities or authorities.
9. With respect to 75% of total assets, purchase securities of an
issuer (other than the U.S. Government, its agencies,
instrumentalities or authorities), if:
(a) such purchase would cause more than 5% of the Portfolio's
total assets taken at market value to be invested in the
securities of such issuer; or
(b) such purchase would at the time result in more than 10%
of the outstanding voting securities of such issuer being
held by the Portfolio.
Investment Restrictions That Are Non-Fundamental. The
following restrictions are non-fundamental and may be changed by
the Board of Directors without the approval of shareholders.
Each LifeSpan Portfolio may not:
(1) Pledge, mortgage or hypothecate its assets, except to secure
permitted borrowings and then only if such pledging, mortgaging or
hypothecating does not exceed 33 1/3% of the Portfolio's total
assets taken at market value. Collateral arrangements with respect
to margin, option and other risk management and when-issued and
forward commitment transactions are not deemed to be pledges or
other encumbrances for purposes of this restriction.
(2) Participate on a joint or joint-and-several basis in any
securities trading account. The "bunching" of orders for the sale
or purchase of marketable portfolio securities with other accounts
under the management of the Manager or the relevant Subadvisers to
save commissions or to average prices among them is not deemed to
result in a joint securities trading account.
(3) Purchase or retain securities of an issuer if one or more of
the Directors or officers of the Company or directors or officers
of the Manager or any Subadviser or any investment management
subsidiary of the Manager or any Subadviser individually owns
beneficially more than 0.5% and together own beneficially more than
5% of the securities of such issuer.
(4) Purchase a security if, as a result, (i) more than 10% of the
Portfolio's assets would be invested in securities of other
investment companies, (ii) such purchase would result in more than
3% of the total outstanding voting securities of any one such
investment company being held by the Portfolio or (iii) more than
5% of the Portfolio's assets would be invested in any one such
investment company. The Portfolio will not purchase the securities
of any open-end investment company except when such purchase is
part of a plan of merger, consolidation, reorganization or purchase
of substantially all of the assets of any other investment company,
or purchase the securities of any closed-end investment company
except in the open market where no commission or profit to a
sponsor or dealer results from the purchase, other than customary
brokerage fees. The Portfolio has no current intention of
investing in other investment companies.
(5) Invest more than 15% of total assets in restricted securities,
including securities eligible for resale pursuant to Rule 144A
under the Securities Act of 1933.
(6) Invest more than 5% of total assets in securities of any
issuer which, together with its predecessors, has been in operation
for less than three years.
(7) Invest in securities which are illiquid if, as a result, more
than 15% of its net assets would consist of such securities,
including repurchase agreements maturing in more than seven days,
securities that are not readily marketable, certain restricted
securities, purchased OTC options, certain assets used to cover
written OTC options, and privately issued stripped mortgage-backed
securities.
(8) Purchase securities while outstanding borrowings exceed 5% of
the Portfolio's total assets.
(9) Invest in real estate limited partnership interests.
(10) Purchase warrants of any issuer, if, as a result of such
purchase, more than 2% of the value of the Portfolio's total assets
would be invested in warrants which are not listed on an exchange
or more than 5% of the value of the total assets of the Portfolio
would be invested in warrants generally, whether or not so listed.
For these purposes, warrants are to be valued at the lesser of cost
or market, but warrants acquired by the Portfolio in units with or
attached to debt securities shall be deemed to be without value.
(11) Purchase interests in oil, gas, or other mineral exploration
programs or mineral leases; however, this policy will not prohibit
the acquisition of securities of companies engaged in the
production or transmission of oil, gas, or other minerals.
(12) Write covered call or put options with respect to more than
25% of the value of its total assets, invest more than 25% of its
total assets in protective put options or invest more than 5% of
its total assets in puts, calls, spreads or straddles, or any
combination thereof, other than protective put options. The
aggregate value of premiums paid on all options, other than
protective put options, held by the Portfolio at any time will not
exceed 20% of the Portfolio's total assets.
(13) Invest for the purpose of exercising control over or
management of any company.
For purposes of a Portfolios' policy not to concentrate their
assets, described above in Restriction (2) for the Panorama
Portfolios and Restriction (8) for the LifeSpan Portfolios, the
Portfolios have adopted the industry classifications set forth in
the Appendix to this Statement of Additional Information. This is
not a fundamental policy.
The percentage restrictions described above and in the
Prospectus are applicable only at the time of investment and
require no action by a Portfolio as a result of subsequent changes
in value of the investments or the size of a Portfolio.
As a matter of non-fundamental policy, each Portfolio has
undertaken to limit its investments in illiquid securities to a
stated percentage of net assets.
In order to permit the sale of shares of the Portfolios in
certain states, the Board of Directors may, in its sole discretion,
adopt restrictions on investment policy more restrictive than those
described above. Should the Board of Directors determine that any
such more restrictive policy is no longer in the best interest of
a Portfolio and its shareholders, the Portfolio may cease offering
shares in the state involved and the Board of Directors may revoke
such restrictive policy. Moreover, if the states involved shall no
longer require any such restrictive policy, the Board of Directors
may, in its sole discretion, revoke that policy.
How the Portfolios are Managed
Organization and History. The Company was incorporated in Maryland
on August 17, 1981. Prior to May 1, 1996, the Company was named
Connecticut Mutual Financial Services Series Fund I, Inc.
As series of a Maryland corporation, the Portfolios are not
required to hold, and do not plan to hold, regular annual meetings
of shareholders. The Portfolios will hold meetings when required
to do so by the Investment Company Act or other applicable law, or
when a shareholder meeting is called by the Directors or upon
proper request of the shareholders.
Directors and Officers of the Company. The Company's Directors and
officers and their principal occupations and business affiliations
during the past five years are listed below. All of the Directors
are also trustees, directors or managing general partners of
Oppenheimer Total Return Fund, Inc., Oppenheimer Equity Income
Fund, Oppenheimer Cash Reserves, Centennial America Fund, L.P.,
Oppenheimer Variable Account Funds, Oppenheimer Champion Income
Fund, Oppenheimer High Yield Fund, Oppenheimer Main Street Funds,
Inc., Oppenheimer Strategic Income Fund, Oppenheimer Strategic
Income & Growth Fund, Oppenheimer International Bond Fund,
Oppenheimer Integrity Funds, Oppenheimer Limited-Term Government
Fund, Oppenheimer Municipal Fund, The New York Tax-Exempt Income
Fund, Inc., Oppenheimer Real Asset Fund, Centennial Money Market
Trust, Centennial Government Trust, Centennial New York Tax Exempt
Trust, Centennial California Tax Exempt Trust, Daily Cash
Accumulation Fund, Inc. and Centennial Tax-Exempt Trust (which
together with the Fund, comprise the "Denver Oppenheimer funds").
Ms. Macaskill is the President and Mr. Swain is the Chairman and
CEO, of all the Denver Oppenheimer funds. As of April 1, 1997, none
of the Directors or officers were account owners and thus none
owned any Portfolio shares.
<PAGE>
ROBERT G. AVIS, Director*; Age 65
One North Jefferson Ave., St. Louis, Missouri 63103
Vice Chairman of A.G. Edwards & Sons, Inc. (a broker-dealer) and
A.G. Edwards, Inc. (its parent holding company); Chairman of A.G.E.
Asset Management and A.G. Edwards Trust Company (its affiliated
investment adviser and trust company, respectively).
WILLIAM A. BAKER, Director; Age 82
197 Desert Lakes Drive, Palm Springs, California 92264
Management Consultant.
CHARLES CONRAD, JR., Director; Age 66
1501 Quail Street, Newport Beach, CA 92660
Chairman and CEO of Universal Space Lines, Inc. (a space services
management company); formerly Vice President of McDonnell Douglas
Space Systems Co. and associated with the National Aeronautics and
Space Administration.
SAM FREEDMAN, Director; Age 56
4975 Lakeshore Drive, Littleton, Colorado 80123
Formerly Chairman and Chief Executive Officer of OppenheimerFunds
Services, Chairman, Chief Executive Officer and a director of
Shareholder Services, Inc. ("SSI"), Chairman, Chief Executive and
Officer and director of Shareholder Financial Services, Inc.
("SFSI"), Vice President and director of Oppenheimer Acquisition
Corp. ("OAC") and a director of OppenheimerFunds, Inc.
RAYMOND J. KALINOWSKI, Director; Age 67
44 Portland Drive, St. Louis, Missouri 63131
Director of Wave Technologies International, Inc. (a computer
products training company); formerly Vice Chairman and a director
of A.G. Edwards, Inc., parent holding company of A.G. Edwards &
Sons, Inc. (a broker-dealer), of which he was a Senior Vice
President.
C. HOWARD KAST, Director; Age 75
2552 East Alameda, Denver, Colorado 80209
Formerly Managing Partner of Deloitte, Haskins & Sells (an
accounting firm).
ROBERT M. KIRCHNER, Director; Age 75
7500 E. Arapahoe Road, Englewood, Colorado 80112
President of The Kirchner Company (management consultants).
NED M. STEEL, Director; Age 81
3416 South Race Street, Englewood, Colorado 80110
Chartered Property and Casualty Underwriter; a director of Visiting
Nurse Corporation of Colorado; formerly Senior Vice President and
a Director of Van Gilder Insurance Corp. (insurance brokers).
_______________
* Director who is an "interested person" of the Fund.
JAMES C. SWAIN, Chairman, Chief Executive Officer and Director*;
Age 63
6803 South Tucson Way, Englewood, Colorado 80112
Vice Chairman of the Manager; formerly President and a director of
Centennial Asset Management Corporation, an investment adviser
subsidiary of the Manager ("Centennial"), and Chairman of the Board
of SSI.
BRIDGET A. MACASKILL, President ; Age 48
President, Chief Executive Officer and a Director of the Manager
and HarbourView Asset Management Corporation ("HarbourView"), a
subsidiary of the Manager; Chairman and a director of SSI and
Shareholder Financial Services, Inc.; President and a director of
OAC and Oppenheimer Partnership Holdings, Inc., a holding company
subsidiary of the Manager; a director of Oppenheimer Real Asset
Management, Inc.; formerly an Executive Vice President of the
Manager.
ANDREW J. DONOHUE, Vice President and Secretary ; Age 46
Executive Vice President, General Counsel and a Director of the
Manager, the Distributor, HarbourView, SSI, SFSI, Oppenheimer
Partnership Holdings, Inc. and MultiSource Services, Inc. (a
broker-dealer); President and a director of Centennial;
President and a director of Oppenheimer Real Asset Management,
Inc.; General Counsel of OAC; an officer of other Oppenheimer
funds.
GEORGE C. BOWEN, Vice President, Treasurer, and Assistant Secretary
; Age 60
6803 Tucson Way, Englewood, Colorado 80112
Senior Vice President and Treasurer of the Manager; Vice President
and Treasurer of the Distributor and HarbourView; Senior Vice
President, Treasurer, Assistant Secretary and a director of
Centennial; President, Treasurer and a director of Centennial
Capital Corporation; Senior Vice President, Treasurer and
Secretary of SSI; Vice President, Treasurer and Secretary of SFSI;
Treasurer of OAC; Treasurer of Oppenheimer Partnership Holdings,
Inc.; Vice President and Treasurer of Oppenheimer Real Asset
Management, Inc.; Chief Executive Officer, Treasurer and a
director of MultiSource Services, Inc. (a broker-dealer); an
officer of other Oppenheimer funds.
ROBERT J. BISHOP, Assistant Treasurer; Age 38
6803 Tucson Way, Englewood, Colorado 80112
Vice President of the Manager/Mutual Fund Accounting; an officer of
other Oppenheimer funds; formerly a Fund Controller for the
Manager.
SCOTT T. FARRAR, Assistant Treasurer; Age 31
6803 Tucson Way, Englewood, Colorado 80112
Vice President of the Manager/Mutual Fund Accounting; an officer of
other Oppenheimer funds; formerly a Fund Controller for the
Manager.
ROBERT G. ZACK, Assistant Secretary; Age 48
Senior Vice President and Associate General Counsel of the Manager,
Assistant Secretary of SSI and SFSI; an officer of other
Oppenheimer funds.
__________
* Director who is an "interested person" of the Fund.
PETER M. ANTOS, Vice President and Portfolio Manager; Age 51
One Financial Plaza, 755 Main Street, Hartford, CT 06103-2603
Certified Financial Analyst: Principal Portfolio Manager, Vice
President of the Fund and Senior Vice President of the Manager and
HarbourView; portfolio manager of other Oppenheimer funds;
previously Vice President and Senior Portfolio Manager,
Equities G.R. Phelps & Co. ("G.R. Phelps") (1989-1996).
MICHAEL C. STRATHEARN, Vice President and Portfolio Manager; Age 44
One Financial Plaza, 755 Main Street, Hartford, CT 06103-2603
Certified Financial Analyst: Vice President of the Funds and the
Manager since March, 1996; Vice President of HarbourView;
portfolio manager of other Oppenheimer funds; previously a
Portfolio Manager, Equities Connecticut Mutual Life Insurance
Company ("CML") (1988-1996).
KENNETH B. WHITE, Vice President and Portfolio Manager; Age 45
One Financial Plaza, 755 Main Street, Hartford, CT 06103-2603
Certified Financial Analyst: Vice President of the Funds and the
Manager since March, 1996; Vice President of HarbourView; portfolio
manager of other Oppenheimer funds; previously a Portfolio Manager,
Equities CML (1982-1996); Senior Investment Officer, Equities CML
(1987-1992).
STEPHEN F. LIBERA, Vice President and Portfolio Manager; Age 46
One Financial Plaza, 755 Main Street, Hartford, CT 06103-2603
Certified Financial Analyst: Vice President of the Funds and the
Manager since March, 1996; Vice President of HarbourView; portfolio
manager of other Oppenheimer funds; previously a Vice President and
Senior Portfolio Manager, Fixed Income--G.R. Phelps (1985-1996).
ARTHUR J. ZIMMER, Vice President and Portfolio Manger; Age 50
Vice President of the Manager and Centennial; an officer of other
Oppenheimer funds.
DAVID P. NEGRI, Vice President and Portfolio Manager; Age 43
Vice President of the Manager; an officer of other Oppenheimer
funds.
DAVID ROSENBERG, Vice President and Portfolio Manager; Age 38
Vice President of the Manager; an officer of other Oppenheimer
funds; formerly Vice President and Senior Portfolio Manager for
Delaware Investment Advisors.
Remuneration of Directors. The officers of the Company
and one Director of the Company (Mr. Swain) who are affiliated
with the Manager receive no salary or fee from the Fund. Mr.
Fossel did not receive any salary or fees from the Fund prior to
January 1, 1997. The remaining Directors of the Company received
the compensation shown below. Mr. Freedman became a Director June
27, 1996, and received no compensation from the Company before that
date. The compensation from the Company was paid during its fiscal
year ended December 31, 1996. The compensation from all of the
Denver-based Oppenheimer funds includes the Company and is
compensation received as a director, trustee, managing general
partner or member of a committee of the Board during the calendar
year 1996.
<TABLE>
<CAPTION>
Total Compensation
Aggregate From All
Compensation Denver-based
Name and Position from Fund Oppenheimer funds1
<S> <C> <C>
Robert G. Avis $1,698 $58,003
Trustee
William A. Baker $2,334 79,715
Audit and Review
Committee Chairman
and Trustee
Charles Conrad, Jr. $2,187 74,717
Audit and Review
Committee Member
and Trustee
Raymond J. Kalinowski $2,172 74,173
Risk Management
Oversight Committee Member
and Trustee
C. Howard Kast $2,172 74,173
Risk Management
Oversight Committee Member
and Trustee
Robert M. Kirchner $2,187 74,717
Audit and Review
Committee Member
and Trustee
Ned M. Steel $1,698 $58,003
Trustee
Sam Freedman
Trustee $ 865 29,502
______________________
<FN>
1 For the 1996 calendar year.
</TABLE>
As of December 31, 1996, the then Directors and officers of
the Company as a group owned of record or beneficially less than 1%
of the outstanding shares of the Company.
Major Shareholders. As of April 1,1997 Massachusetts Mutual
Life Insurance Company ("MML") and its affiliates (and not on
behalf of any separate account) owned 100% of the shares of the
Portfolios. MML and its affiliates are deemed to be controlling
persons of any Portfolio of the Company of which they own more than
25% of the shares outstanding. As such, the exercise by MML and
its affiliates of their voting rights may diminish the voting power
of other shareholders. As of April 1, 1997, no other shareholder
of the Company owned of record or beneficially 5% or more of the
shares outstanding of any Portfolio.
The Manager, the Subadvisers and Their Affiliates. The Manager is
wholly-owned by Oppenheimer Acquisition Corporation ("OAC"), a
holding company controlled by MML. OAC is also owned in part by
certain of the Manager's directors and officers, some of whom also
serve as officers of the Portfolios, and one of whom (Mr. James C.
Swain) serves as a Director of the Company.
The Manager and the Company have a Code of Ethics, as does
each Subadviser. The Codes of Ethics are designed to detect and
prevent improper personal trading by certain employees, including
portfolio managers, that would compete with or take advantage of a
Portfolio's portfolio transactions. Compliance with the respective
Code of Ethics is carefully monitored and strictly enforced by the
Manager or the relevant Subadviser.
The Investment Advisory Agreements. Each Portfolio has
entered into an Investment Advisory Agreement with the Manager,
effective March 1, 1996. The investment advisory agreement between
the Manager and each Portfolio requires the Manager, at its
expense, to provide each Portfolio with adequate office space,
facilities and equipment, and to provide and supervise the
activities of all administrative and clerical personnel required to
provide effective corporate administration for each Portfolio,
including the compilation and maintenance of records with respect
to its operations, the preparation and filing of specified reports,
and composition of proxy materials and registration statements for
the continuous public sale of shares of each Portfolio.
Expenses not expressly assumed by the Manager under an
advisory agreement are paid by the relevant Portfolio. The
advisory agreement lists examples of expenses to be paid by a
Portfolio, the major categories of which relate to interest, taxes,
brokerage commissions, fees to certain Directors, legal, and audit
expenses, custodian and transfer agent expenses, share issuance
costs, certain printing and registration costs and non-recurring
expenses, including litigation.
The advisory fees paid by the Portfolios to G.R. Phelps, the
Portfolios' prior investment advisor (until March 1, 1996), and the
management fees paid to the Manager from March 1, 1996 to December
31, 1996 were as follows:
<TABLE>
<CAPTION>
1994 1995 1996
<S> <C> <C> <C>
Total Return Portfolio $3,672,463 $4,780,963 $5,817,245
Growth Portfolio $1,249,284 $1,890,963 $2,801,667
International Equity
Portfolio $ 269,195 $ 374,740 $569,471
1994 1995 1996
Life Span Capital
Appreciation $ 0 $ 72,333 $281,564
LifeSpan Balanced
Portfolio $ 0 $ 96,385 $355,893
LifeSpan Diversified
Income $ 0 $ 51,050 $171,569
Government Securities
Portfolio $ 110,313 $ 117,370 $125,427
Total All Portfolios $6,243,372 $8,324,959 $10,122,836
__________ __________ _________
</TABLE>
The advisory agreements provide that in the absence of willful
misfeasance, bad faith, gross negligence in the performance of its
duties, or reckless disregard of its obligations and duties under
the advisory agreement, the Manager is not liable for any loss
resulting from any good faith errors or omissions in connection
with any matters to which the agreement relates. Each advisory
agreement permits the Manager to act as investment adviser for any
other person, firm or corporation and to use the name "Oppenheimer"
in connection with its other investment activities. The agreement
permits the Company to use the name "Oppenheimer" as part of its
corporate name and for the names of the series, if the Board of
Directors so elects. If the Manager shall no longer act as
investment adviser to the Portfolios, the right of the Portfolios
to use the name "Oppenheimer" as part of their names may be
withdrawn.
The Investment Subadvisory Agreements. The advisory
agreements permit the Manager to hire one or more subadvisers to
assist with the management of the Portfolios. The Manager has done
so for the International Equity Portfolio and the LifeSpan
Portfolios.
With respect to the International Equity Portfolio and the
international component for the LifeSpan Capital Appreciation
Portfolio and LifeSpan Balanced Portfolio, the Manager has entered
into investment subadvisory agreements with Babson-Stewart Ivory
International ("Babson-Stewart"). With respect to the small cap
component of the LifeSpan Capital Appreciation and LifeSpan
Balanced Portfolios, the Manager has entered into investment
subadvisory agreements with Pilgrim Baxter & Associates
("Pilgrim"). With respect to the high yield/high risk bond
component for each LifeSpan Portfolio, the Manager has entered into
investment subadvisory agreements with BEA Associates.
Babson-Stewart, One Memorial Drive, Cambridge, Massachusetts
02142, is a Massachusetts general partnership and a registered
investment adviser and was originally established in 1987. The
general partners of Babson-Stewart are David L. Babson & Co., which
is an indirect subsidiary of Massachusetts Life Insurance Company,
and Stewart Ivory & Co. (International), Ltd. As of December 31,
1996, Babson-Stewart had approximately $4.4 billion in assets under
management.
BEA Associates, One Citicorp Center, 153 E. 53rd Street, 57th
Floor, New York, NY 10022, is a partnership between Credit Suisse
Capital Corporation and CS Advisors Corp. BEA Associates has been
providing domestic and global fixed income and equity investment
management services for institutional clients and mutual funds
since 1984 and, had $31.3 billion in assets under management as of
December 31, 1996.
Pilgrim, 1255 Drummers Lane, Wayne, Pennsylvania 19087, was
established in 1982 to provide specialized equity management for
institutional investors. Pilgrim is a Delaware corporation and a
wholly owned subsidiary of United Asset Management Corporation. As
of December 31, 1996, Pilgrim had over $14 billion in assets under
management.
Under the respective investment subadvisory agreements, the
corresponding Subadviser, subject to the review of the Board of
Directors and the overall supervision of the Manager, is
responsible for managing the investment operations of the
corresponding LifeSpan Portfolio component and the composition of
the component's portfolio and furnishing the LifeSpan Portfolio
with advice and recommendations with respect to investments and the
purchase and sale of securities for the respective component. The
shareholders of the Portfolios approved new subadvisory agreements
with the relevant subadvisers effective March 1, 1996. The
Manager, not the Portfolios, pays the subadvisers. The subadvisers
are paid at the rate set forth in the Prospectus.
The investment subadvisory agreements with Babson-Stewart
provide that in the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard with respect to its
obligations and duties under the agreements, Babson-Stewart will
not be subject to liability for any loss sustained by reason of its
good faith errors of omissions in connection with any matters to
which the agreements relate.
The investment subadvisory agreements with Pilgrim provide
that in the absence of willful misfeasance, bad faith, negligence,
or reckless disregard of the performance of its duties under the
agreements, Pilgrim is not subject to liability for any error of
judgment or mistake of law or for any other action or omission in
the course of, or connected with, rendering services or for any
losses that may be sustained in the purchase, holding or sale of
any security, or otherwise.
The investment subadvisory agreements with BEA Associates
provide that in the absence of willful misfeasance, bad faith,
negligence, or reckless disregard of the performance of its duties
under the agreement, BEA Associates is not subject to liability for
losses as a result of its activities in connection with the
adoption of any investment policy or the purchase, sale or
retention of securities on behalf of the LifeSpan Portfolios
subadvised by BEA Associates if such activities were made with due
care and in good faith.
For the period from June, 1996 through December, 1996, the
Manager paid subadvisory fees to Babson-Stewart totaling
$251,772.80; Pilgrim Baxter totaling $55,857.40 and BEA Associates
totaling $35,061.40.
The Transfer Agent. OppenheimerFunds Services, a division of
the Manager, each Portfolio's transfer agent, is responsible for
maintaining each Portfolio's shareholder registry and shareholder
accounting records, and for shareholder servicing and
administrative functions. It provides these services "at cost."
Brokerage Policies Of The Portfolios
The Company has no obligation to deal with any dealer or group
of dealers in the execution of transactions in portfolio
securities. Subject to any policy established by the Board of
Directors, the Manager and the relevant Subadvisers are primarily
responsible for the investment decisions of each Portfolio or
Portfolio component and the placing of its portfolio transactions.
It is the policy of each Portfolio to obtain the most favorable net
results, taking into account various factors, including price,
dealer spread or commission, if any, size of the transaction and
difficulty of execution. While the Manager and the Subadvisers
generally seek reasonably competitive spreads or commissions, the
Portfolios will not necessarily pay the lowest spread or commission
available.
Brokerage Provisions of the Investment Advisory Agreements. One of
the duties of the Manager under each advisory agreement is to
arrange the portfolio transactions for each Portfolio. Each
advisory agreement contains provisions relating to the employment
of broker-dealers ("brokers") to effect a Portfolio's portfolio
transactions. In doing so, the Manager is authorized by the
advisory agreement to employ such broker-dealers, including
"affiliated" brokers, as that term is defined in the Investment
Company Act, as may, in its best judgment based on all relevant
factors, implement the policy of a Portfolio to obtain, at
reasonable expense, the "best execution" (prompt and reliable
execution at the most favorable price obtainable) of such
transactions. The Manager need not seek competitive commission
bidding, but is expected to minimize the commissions paid to the
extent consistent with the interest and policies of a Portfolio as
established by its Board of Directors. Purchases of securities
from underwriters include a commission or concession paid by the
issuer to the underwriter, and purchasers from dealers include a
spread between the bid and asked price.
Under each advisory agreement, the Manager is authorized to
select brokers that provide brokerage and/or research services for
a Portfolio and/or the other accounts over which the Manager or its
affiliates have investment discretion. The commissions paid to
such brokers may be higher than another qualified broker would have
charged, if a good faith determination is made by the Manager and
the commission is fair and reasonable in relation to the services
provided. Subject to the foregoing considerations, the Manager may
also consider sales of shares of a Portfolio and other investment
companies managed by the Manager or its affiliates as a factor in
the selection of brokers for a Portfolio's portfolio transactions.
Description of Brokerage Practices Followed by the Manager and
Subadvisers. Most purchases of debt securities, commercial paper,
and money market instruments made by the Portfolios are principal
transactions at net prices, and the Portfolios incur little or no
brokerage costs for these transactions.
Subject to the provisions of the advisory agreements and the
subadvisory agreements and the procedures and rules described
above, allocations of brokerage are generally made by the Manager's
or the Subadviser's portfolio traders based upon recommendations
from the Manager's portfolio managers. In certain instances,
portfolio managers may directly place trades and allocate
brokerage, also subject to the provisions of the advisory
agreements and the subadvisory agreements and the procedures and
rules described above. In either case, brokerage is allocated
under the supervision of the Manager's or the Subadviser's
executive officers. Transactions in securities other than those
for which an exchange is the primary market are generally done with
principals or market makers. Brokerage commissions are paid
primarily for effecting transactions in listed securities or for
certain fixed income agency transactions in the secondary market
and otherwise only if it appears likely that a better price or
execution can be obtained.
When the Portfolios engage in an option transaction,
ordinarily the same broker will be used for the purchase or sale of
the option and any transaction in the securities to which the
option relates. When possible, concurrent orders to purchase or
sell the same security by more than one of the accounts managed by
the Manager, the Subadvisers and their affiliates are combined.
The transactions effected pursuant to such combined orders are
averaged as to price and allocated in accordance with the purchase
or sale orders actually placed for each account.
The research services provided by a particular broker may be
useful only to one or more of the advisory accounts of the Manager
and its affiliates, or a Subadviser, and investment research
received for the commissions of those other accounts may be useful
both to the Portfolios and one or more of such other accounts.
Such research, which may be supplied by a third party at the
instance of a broker, includes information and analyses on
particular companies and industries as well as market or economic
trends and portfolio strategy, receipt of market quotations for
portfolio evaluations, information systems, computer hardware and
similar products and services. If a research service also assists
the Manager in a non-research capacity (such as bookkeeping or
other administrative functions), then only the percentage or
component that provides assistance to the Manager (or Subadviser)
in the investment decision-making process may be paid in commission
dollars. The Board of Directors permits the Manager to use
concessions on fixed price offerings to obtain research, in the
same manner as is permitted for agency transactions. The Board
also permits the Manager to use stated commissions on secondary
fixed-income trades to obtain research where the broker has
represented to the Manager that (i) the trade is not from the
broker's own inventory, (ii) the trade was executed by the broker
on an agency basis at the stated commission, and (iii) the trade is
not a riskless principal transaction.
The research services provided by brokers broadens the scope
and supplements the research activities of the Manager and
Subadvisers, by making available additional views for consideration
and comparisons, and enabling the Manager and Subadvisers to obtain
market information for the valuation of securities held in a
Portfolio's portfolio or being considered for purchase.
As most purchases made by Government Securities Portfolio are
principal transactions at net prices, that Portfolio incurs little
or no brokerage costs. Purchases of securities from underwriters
include a commission or concession paid by the issuer to the
underwriter, and purchases from dealers include a spread between
the bid and asked price. No principal transactions and, except
under unusual circumstances, no agency transactions for this
Portfolio will be handled by any affiliated securities dealer. In
the unusual circumstance when this Portfolio pays brokerage
commissions, the above-described brokerage practices and policies
are followed. However, since brokerage commissions, if any, are
small, high portfolio turnover does not have an appreciable adverse
effect upon net asset value of the Portfolio.
During the Portfolios' fiscal years ended December 31, 1994,
1995 and 1996, total brokerage commissions paid by the portfolios
listed below were:
1994 1995 1996
Brokerage Brokerage Brokerage
Portfolio Commissions Commissions Commissions
Growth Portfolio $ 727,310 $781,682 $558,861
Total Return Portfolio $ 1,311,239 $910,605 $802,877
International Equity $ 56,589 $216,759 $190,606
Portfolio
LifeSpan Capital
Appreciation
Portfolio N/A $91,744 $29,204
Lifespan Diversified
Income Portfolio N/A $ 9,149 $ 2,766
LifeSpan Balanced
Portfolio N/A $ 40,872 $24,827
Performance of the Portfolios
Yield and Total Return Information. From time to time, as set
forth in the Prospectus, the "standardized yield," "dividend
yield," "average annual total return," or "cumulative total
return," as the case may be, of an investment in a Portfolio may be
advertised. An explanation of how yields and total returns are
calculated and the components of those calculations is set forth
below.
A Portfolio's advertisement of its performance must, under
applicable rules of the SEC, include the average annual total
returns for the Portfolio for the 1, 5 and 10-year periods (or the
life of the Portfolio, if less) as of the most recently ended
calendar quarter prior to the publication of the advertisement.
This enables an investor to compare a Portfolio's performance to
the performance of other funds for the same periods. However, a
number of factors should be considered before using such
information as a basis for comparison with other investments. The
performance data for a Portfolio does not reflect the effect of any
charges or costs of the insurance company separate account that
invests in the Portfolio on behalf of the variable contracts of
contract owners. An investment in a Portfolio is not insured; its
yields and total returns and share prices are not guaranteed and
normally will fluctuate on a daily basis. When redeemed, shares
may be worth more or less than their original cost. Yields and
total returns for any given past period are not a prediction or
representation by a Portfolio of future yields or rates of return
on its shares. The yields and total returns of a Portfolio are
affected by portfolio quality, the type of investments the
Portfolio holds and its operating expenses.
Standardized Yields. A Portfolio's "yields" (referred to as
"standardized yield") for a given 30-day period are calculated
using the following formula set forth in rules adopted by the SEC
that apply to all funds that quote yields:
2 [( a-b + 1)6 - 1]
Standardized Yield = ( cd )
The symbols above represent the following factors:
a = dividends and interest earned during the 30-day period.
b = net expenses accrued for the period (expense reimbursements).
c = the average daily number of Portfolio shares outstanding
during the 30-day period that were entitled to receive
dividends.
d = the Portfolio's maximum offering price per share on the last
day of the period, adjusted for undistributed net investment
income.
The standardized yield of a Portfolio for a 30-day period may
differ from its yield for any other period. The SEC formula
assumes that the standardized yield for a 30-day period occurs at
a constant rate for a six-month period and is annualized at the end
of the six-month period. For the 30 days ended December 31, 1996,
the yield of Total Return Portfolio, LifeSpan Diversified Income
Portfolio and Government Securities Portfolio, calculated as
described above was %, % and 6.29%, respectively. This
standardized yield is not based on actual distributions paid by a
Portfolio to shareholders in the 30-day period, but is a
hypothetical yield based upon the net investment income from a
Portfolio's portfolio investments calculated for that period. The
standardized yield may differ from the "dividend yield" of the
Portfolio, described below.
Dividend Yield and Distribution Return. From time to time a
Portfolio may quote a "dividend yield" or a "distribution return."
Dividend yield is based on a Portfolio's dividends derived from net
investment income during a stated period. Distribution return
includes dividends derived from net investment income and from
realized capital gains declared during a stated period. Under
those calculations, a Portfolio's dividends and/or distributions
declared during a stated period of one year or less (for example,
30 days) are added together, and the sum is divided by the
Portfolio's maximum offering price) on the last day of the period.
When the result is annualized for a period of less than one year,
the "dividend yield" is calculated as follows:
Dividend Yield = Dividends divided by Number of days (accrual
Max. Offering Price period) x 365
(last day of period)
Total Return Information
Average Annual Total Returns. A Portfolio's "average annual
total return" is an average annual compounded rate of return for
each year in a specified number of years. It is the rate of return
based on the change in value of a hypothetical initial investment
of $1,000 ("P" in the formula below) held for a number of years
("n") to achieve an Ending Redeemable Value ("ERV") of that
investment according to the following formula:
(ERV)1/n - 1 = Average Annual Total Return
P
Cumulative Total Returns. The "cumulative total return"
calculation measures the change in value of a hypothetical
investment of $1,000 over an entire period of years. Its
calculation uses some of the same factors as average annual total
return, but it does not average the rate of return on an annual
basis. Cumulative total return is determined as follows:
ERV-P = Total Return
P
Both formulas assume that all dividends and capital gains
distributions during the period are reinvested at net asset value
per share, and that the investment is redeemed at the end of the
period. Set forth below is the "average annual total return" and
"total return" for each Fund (using the method described above)
during the periods indicated:
<TABLE>
<CAPTION>
Average Annual Total Return for:
Cumulative
Total
Fiscal Year Five Year Ten Year Return From
Ended Period Period Inception(1) Inception(1)
Fund 12/31/96 Ended 12/31/96 Ended 12/31/96 to 12/31/96 to 12/31/96
<S> <C> <C> <C> <C> <C>
Total Return Portfolio 10.14% 11.52% 12.32% 13.73 % 525.63%
Growth Portfolio 18.87% 17.33% 15.94% 17.79% 1054.61%
International Equity 13.26% N/A 8.78% 47.68%
LifeSpan CapApp 17.97% N/A 18.80% 25.82%
LifeSpan Balanced 13.38% N/A 14.85% 20.27%
LifeSpan Div. Income 6.93% N/A 9.61 % 13.01%
Government Securities 1.93% 6.93% 36.40%
______________
<FN>
(1)Inception dates are as follows: May 13, 1992 for International Equity Portfolio and
Government
Securities Portfolio; and September 1, 1995 for LifeSpan Capital Appreciation Portfolio, LifeSpan
Balanced
Portfolio and LifeSpan Diversified Income Portfolio.
</TABLE>
From time to time a Portfolio may also include in its
advertisements and sales literature performance information about
a Portfolio or rankings of a Portfolio's performance cited in
newspapers or periodicals, such as The New York Times or the Wall
Street Journal. These articles may include quotations of
performance from other sources, such as Lipper Analytical Services,
Inc. or Morningstar, Inc.
Other Performance Comparisons. From time to time a Portfolio may
publish the ranking of its shares by Lipper Analytical Services,
Inc. ("Lipper"), a widely-recognized independent mutual fund
monitoring service. Lipper monitors the performance of regulated
investment companies, including the Portfolios, and ranks their
performance for various periods based on categories relating to
investment objectives. The performance of the Portfolios is ranked
against other mutual funds offered under variable contracts. The
Lipper performance rankings are based on total returns that include
the reinvestment of capital gain distributions and income dividends
but do not take taxes into consideration.
From time to time a Portfolio may publish the star ranking of
the performance of its shares by Morningstar, Inc., an independent
mutual fund monitoring service that ranks mutual funds, including
the Portfolios, in broad investment categories (domestic stock,
international stock, taxable bond, municipal bond and hybrid) based
on risk-adjusted investment return. Investment return measures a
fund's three, five and ten-year average annual total returns (when
available) in excess of 90-day U.S. Treasury bill returns after
considering expenses. Risk measures fund performance below 90-day
U.S. Treasury bill monthly returns. Risk and investment return are
combined to produce star rankings reflecting performance relative
to the average fund in a fund's category. Five stars is the
"highest" ranking (top 10%), four stars is "above average" (next
22.5%), three stars is "average" (next 35%), two stars is "below
average" (next 22.5%) and one star is "lowest" (bottom 10%).
Morningstar may rank the shares of the Portfolio in relation to
other funds in their respective categories. Rankings are subject
to change monthly.
A Portfolio may also compare its performance to that of other
funds in its Morningstar Category. In addition to its star
rankings, Morningstar also categorizes and compares a fund's 3-year
performance based on Morningstar's classification of the fund's
investments and investment style, rather than how a fund defines
its investment objective. Morningstar's four broad categories
(domestic equity, international equity, municipal bond and taxable
bond) are each further subdivided into categories based on types of
investments and investment styles. Those comparisons by
Morningstar are based on the same risk and return measurements as
its star rankings but do not consider the effect of sales charges.
From time to time, the Manager may publish rankings or ratings
of the Manager (or the Transfer Agent), by independent third-
parties, on the investor services provided by them to shareholders
of the Oppenheimer funds, other than the performance rankings of
the Oppenheimer funds themselves. These ratings or rankings of
shareholder/investor services by third parties may compare the
Oppenheimer funds services to those of other mutual fund families
selected by the rating or ranking services, and may be based upon
the opinions of the rating or ranking service itself, using its own
research or judgment, or based upon surveys of investors, brokers,
shareholders or others.
ABOUT YOUR ACCOUNT
How To Buy Shares
Insurance Companies are the record holders and the owners of
shares of beneficial interest in each Portfolio of the Company. In
accordance with any limitations set forth in their variable
contracts, contract holders may direct their Insurance Companies to
allocate amounts available for investment among the Company's
Portfolios. Instructions for any such allocation, or for the
purpose of redemption of shares of a Portfolio, must be made by the
investor's Insurance Company. The rights of Insurance Companies as
record holders and owners of shares of a Portfolio are different
from the rights of variable contract holders. The term
"shareholder" in this Statement of Additional Information refers
only to Insurance Companies and not to contract holders. The
Company reserves the right to limit the types of separate accounts
that may invest in any Portfolio.
The sale of shares of the Portfolios is currently limited to
Accounts as explained on the cover page of this Statement of
Additional Information and the Prospectus. Such shares are sold at
their respective offering prices (net asset values without sales
charges) and redeemed at their respective net asset values as
described in the Prospectus.
Determination of Net Asset Value Per Share. The net asset value
per share of each Portfolio is determined as of the close of
business of The New York Stock Exchange on each day the Exchange is
open by dividing the value of a Portfolio's net assets by the
number of shares outstanding. The Exchange normally closes at 4:00
P.M., New York time, but may close earlier on some days (for
example, in case of weather emergencies or on days falling before
a holiday). The Exchange's most recent annual holiday schedule
(which is subject to change) states that it will close New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day; it may close on
other days. Trading may occur at times when the Exchange is closed
(including weekends and holidays or after 4:00 P.M., on a regular
business day). Because the net asset values of a Portfolio will
not be calculated at such times, if securities held by a Portfolio
are traded at such time, the net asset values per share of a
Portfolio may be significantly affected on such days when
shareholders do not have the ability to purchase or redeem shares.
The Board of Directors has established procedures for the
valuation of each Portfolio's securities, generally as follows: (i)
equity securities traded on a U.S. securities exchange or on NASDAQ
for which last sale information is regularly reported are valued at
the last reported sale price on their primary exchange or NASDAQ
that day (or, in the absence of sales that day, at values based on
the last sale prices of the preceding trading day or the closing
"bid" price on the day of valuation); (ii) securities traded on a
foreign securities exchange are valued generally at the last sales
price available to the pricing service approved by the Board of
Directors or to the Manager as reported by the principal exchange
on which the security is traded at its last trading session on or
immediately preceding the valuation date, or at the mean between
"bid" and "ask" prices obtained from the principal exchange or two
active market makers in the security; (iii) long-term debt
securities having a remaining maturity in excess of 60 days are
valued based on the mean between the "bid" and "ask" prices
determined by a portfolio pricing service approved by the Board of
Directors or obtained by the Manager from two active market makers
in the security on the basis of reasonable inquiry; (iv) debt
instruments having a maturity of more than 397 days when issued,
and non-money market type instruments having a maturity of 397 days
or less when issued, which have a remaining maturity of 60 days or
less are valued at the mean between the "bid" and "ask" prices
determined by a pricing service approved by the Board of Directors
or obtained by the Manager from two active market makers in the
security on the basis of reasonable inquiry; (v) money market debt
securities that had a maturity of less than 397 days when issued
that have a remaining maturity of 60 days or less are valued at
cost, adjusted for amortization of premiums and accretion of
discounts; and (vi) securities (including restricted securities)
not having readily-available market quotations are valued at fair
value determined under the Board's procedures. If the Manager is
unable to locate two market makers willing to give quotes (see
(ii), (iii) and (iv) above), the security may be priced (i) at the
mean of the "bid" and "ask" prices provided by a single active and
reliable market maker (which in certain cases may be the "bid"
price if no "ask" price is available) provided the Manager is
satisfied that the firm rendering the quotes is reliable and that
the quotes reflect the current market value; or (ii) at the
"official bid" or "market maker bid" available to the pricing
service or the Manager as reported by the principal exchange at its
last trading session on or immediately prior to the Valuation Date.
In the case of U.S. Government Securities and mortgage-backed
securities, where last sale information is not generally available,
such pricing procedures may include "matrix" comparisons to the
prices for comparable instruments on the basis of quality, yield,
maturity and other special factors involved. The Manager may use
pricing services approved by the Board of Directors to price U.S.
Government Securities for which last sale information is not
generally available. The Manager will monitor the accuracy of such
pricing services, which may include comparing prices used for
portfolio evaluation to actual sales prices of selected securities.
Trading in securities on European and Asian exchanges and
over-the-counter markets is normally completed before the close of
the New York Stock Exchange. Events affecting the values of
foreign securities traded in securities markets that occur between
the time their prices are determined and the close of the New York
Stock Exchange will not be reflected in the Portfolio's
calculation of net asset value unless the Board of Directors or the
Manager, under procedures established by the Board of Directors,
determines that the particular event is likely to effect a material
change in the net asset value of a Portfolio's share. Foreign
currency, including forward contracts, will be valued at the
closing price in the London foreign exchange market that day as
provided by a reliable bank, dealer or pricing service. The values
of securities denominated in foreign currency will be converted to
U.S. dollars at the closing price in the London foreign exchange
market that day as provided by a reliable bank, dealer or pricing
service.
Puts, calls and Futures are valued at the last sales price on
the principal exchange on which they are traded or on NASDAQ, as
applicable, as determined by a pricing service approved by the
Board of Directors or by the Manager. If there were no sales that
day, value shall be the last sale price on the preceding trading
day if it is within the spread of the closing "bid" and "ask"
prices on the principal exchange or on NASDAQ on the valuation
date, or, if not, value shall be the closing "bid" price on the
principal exchange or on NASDAQ on the valuation date. If the put,
call or future is not traded on an exchange or on NASDAQ, it shall
be valued at the mean between "bid" and "ask" prices obtained by
the Manager from two active market makers (which in certain cases
may be the "bid" price if no "ask" price is available).
Dividends, Capital Gains and Taxes
Dividends and Distributions. The Company intends for each
Portfolio to qualify and be treated as a "regulated investment
company" under Subchapter M of the Internal Revenue Code of 1986,
as amended (the "Code") for each taxable year. By so qualifying,
the Portfolios will not be subject to Federal income taxes on
amounts paid by them as dividends and distributions, as described
in the Prospectus. Each Portfolio is treated as a separate entity
for purposes of determining Federal tax treatment. The Company
will endeavor to ensure that each Portfolio's assets are so
invested so that all such requirements are satisfied, but there can
be no assurance that it will be successful in doing so.
In order to qualify as a regulated investment company under
Subchapter M of the Code, a Portfolio must, among other things,
derive at least 90% of its gross income for the taxable year from
dividends, interest, gains from the sale or other disposition of
stock, securities or foreign currencies, fees from certain
securities loans or other income (including gains from options,
futures and forward contracts) derived with respect to its business
of investing in such stock, securities or currencies (the "90%
income test"), limit its gains from the sale of stock, securities
and certain other investments held for less than three months to
less than 30% of its gross income for the taxable year (the "30%
test") and satisfy certain annual distribution and quarterly
diversification requirements. For purposes of the 90% income test,
income that a Portfolio earns from equity interests in certain
entities that are not treated as corporations (e.g., are treated as
partnerships or trusts) for U.S. tax purposes will generally have
the same character for the Portfolio as in the hands of such
entities; consequently, the Portfolio may be required to limit its
equity investments in such entities that earn fee income, rental
income, or other nonqualifying income.
As noted in the Prospectus, each Portfolio must, and intends
to, comply with the diversification requirements imposed by Section
817(h) of the Code and the regulations thereunder. These
requirements, which are in addition to the diversification
requirements imposed on a Portfolio by the Investment Company Act
and Subchapter M of the Code, place certain limitations on the
assets of each separate account and, because Section 817(h) and
those regulations treat the assets of the Portfolio as assets of
the related separate account, the assets of a Portfolio, that may
be invested in securities of a single issuer. Specifically, the
regulations provide that, except as permitted by the "safe harbor"
described below, as of the end of each calendar quarter or within
30 days thereafter no more than 55% of the total assets of a
Portfolio may be represented by any one investment, no more than
70% by any two investments, no more than 80% by any three
investments and no more than 90% by any four investments. For this
purpose, all securities of the same issuer are considered a single
investment, and each U.S. Government agency and instrumentality is
considered a separate issuer. Section 817(h) provides, as a safe
harbor, that a separate account will be treated as being adequately
diversified if the diversification requirements under Subchapter M
are satisfied and no more than 55% of the value of the account's
total assets are cash and cash items (including receivables), U.S.
Government securities and securities of other regulated investment
companies. Failure by a Portfolio to both qualify as a regulated
investment company and satisfy the Section 817(h) requirements
would generally result in treatment of the variable contract
holders other than as described in the applicable variable contract
prospectus, including inclusion in ordinary income of income
accrued under the contracts for the current and all prior taxable
years. Any such failure may also result in adverse tax
consequences for the Portfolio and the insurance company issuing
the contracts.
Foreign exchange gains and losses realized by a Portfolio in
connection with certain transactions involving foreign currency
denominated debt securities, certain options and futures contracts
relating to foreign currency, forward foreign currency contracts,
foreign currencies, or payables or receivables denominated in a
foreign currency are subject to Section 988 of the Code, which
generally causes such gains and losses to be treated as ordinary
income and losses and may affect the amount, timing and character
of distributions to shareholders. Any such transactions that are
not directly related to a Portfolio's investment in stock or
securities may increase the amount of gain it is deemed to
recognize from the sale of certain investments held for less than
three months for purposes of the 30% test and may under future
Treasury regulations produce income not among the types of
"qualifying income" for purposes of the 90% income test. If the
net foreign exchange loss for a year were to exceed the Portfolio's
investment company taxable income (computed without regard to such
loss) the resulting overall ordinary loss for such year would not
be deductible by the Portfolio or its shareholders in future years.
Limitations imposed by the Code on regulated investment
companies like the Portfolios may restrict the Portfolios' ability
to enter into futures, options and currency forward transactions.
The Portfolios may be subject to withholding and other taxes
imposed by foreign countries with respect to their investments in
foreign securities. Tax conventions between certain countries and
the U.S. may reduce or eliminate such taxes.
The federal income tax rules applicable to mortgage dollar
rolls and interest rate swaps, caps, floors and collars are unclear
in certain respects, and the Portfolios may be required to account
for these instruments under tax rules in a manner that, under
certain circumstances, may limit their transactions in these
instruments.
If a Portfolio acquires stock in certain non-U.S. corporations
that receive at least 75% of their annual gross income from passive
sources (such as interest, dividends, rents, royalties or capital
gain) or hold at least 50% of their assets in investments producing
such passive income ("passive foreign investment companies"), the
Portfolio could be subject to Federal income tax and additional
interest charges on "excess distributions" received from such
companies or gain from the sale of stock in such companies, even if
all income or gain actually received by the Portfolio is timely
distributed to its shareholders. The Portfolio would not be able
to pass through to its shareholders any credit or deduction for
such a tax. Certain elections may, if available, ameliorate these
adverse tax consequences, but any such election would require the
Portfolio to recognize taxable income or gain without the
concurrent receipt of cash. Each Portfolio may limit and/or manage
its stock holdings in passive foreign investment companies to
minimize its tax liability or maximize its return from these
investments.
ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS
The Custodian. State Street Bank and Trust Company is the
Custodian of the Portfolios' assets. The Custodian's
responsibilities include safeguarding and controlling the
Portfolios' portfolio securities, collecting income on the
portfolio securities and handling the delivery of such securities
to and from the Portfolios.
Independent Auditors. The independent auditors of the Portfolios
audit the Portfolios' financial statements and perform other
related audit services. They also act as auditors for certain
other funds advised by the Manager and its affiliates.
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Panorama Series Fund, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of Total Return Portfolio, Growth Portfolio,
Government Securities Portfolio, International Equity Portfolio, LifeSpan
Diversified Income Portfolio, LifeSpan Balanced Portfolio and LifeSpan Capital
Appreciation Portfolio (all of which are a series of Panorama Series Fund, Inc.)
as of December 31, 1996 and the related statements of operations and changes in
net assets and the financial highlights for the year ended December 31, 1996.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The statements
of changes in net assets for the year ended December 31, 1995 and the financial
highlights for the period January 1, 1992 to December 31, 1995 were audited by
other auditors whose report dated February 15, 1996, expressed an unqualified
opinion on this information.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December 31, 1996 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Total Return
Portfolio, Growth Portfolio, Government Securities Portfolio, International
Equity Portfolio, LifeSpan Diversified Income Portfolio, LifeSpan Balanced
Portfolio and LifeSpan Capital Appreciation Portfolio at December 31, 1996, the
results of their operations, the changes in their net assets, and the financial
highlights for the year ended December 31, 1996, in conformity with generally
accepted accounting principles.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
January 22, 1997
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 8.8%
- ----------------------------------------------------------------------------------------------------
BankAmerica Manufactured Housing Contract,
Series 1996-1, Cl. A1, 6.125%, 10/10/26 $ 2,051,213 $ 2,052,175
-----------------------------------------------------------------------------------------------
Chase Commercial Mortgage Securities Corp., Commercial
Mtg. Obligations, Series 1996-1, Cl. A2, 7.60%, 7/18/28 6,000,000 6,038,320
-----------------------------------------------------------------------------------------------
Contimortgage Home Equity Loan Trust, Series 1995-2,
Cl. A2, 7.95%, 4/15/10 730,464 737,084
-----------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp:
Series 1843, Cl. VB, 7%, 4/15/03 3,578,600 3,594,238
Series 1849, Cl. VA, 6%, 12/15/10 5,299,461 5,203,383
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates:
6%, 3/1/09 4,015,999 3,898,371
Series 1992-15, Cl. KZ, 7%, 2/25/22 2,101,844 1,816,120
Series 1337, Cl. D, 6%, 8/15/07 3,000,000 2,802,180
Series 1574, Cl. PD, 5.55%, 3/15/13 775,000 770,637
Series 1694, Cl. PG, 5.75%, 12/15/21 5,000,000 4,798,400
Series 1820, Cl. Pl, 5.75%, 7/15/06 4,880,000 4,764,291
Series 1994-43, Cl. PE, 6%, 12/25/19 2,950,000 2,903,892
-----------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 3,566,389 3,499,377
6.50%, 4/1/24-4/1/26 3,470,763 3,315,251
7%, 4/1/00 1,239,250 1,245,187
7.50%, 5/1/07-12/1/08 1,602,480 1,630,175
8%, 3/1/17-6/1/17 270,693 279,342
Interest-Only Stripped Mtg.-Backed Security,
Series 1993-223, Cl. PM, 7.274%, 10/25/23 (1) 10,496,463 1,741,678
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates:
Series 1993-181, Cl. C, 5.40%, 10/25/02 1,400,000 1,389,052
Series 1993-190, Cl. Z, 5.85%, 7/25/08 1,407,483 1,384,337
-----------------------------------------------------------------------------------------------
GE Capital Mortgage Securities, Inc., Series-HE2, Cl. A3,
7.30%, 3/25/12 2,700,000 2,733,750
-----------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
6.50%, 10/15/23-4/15/26 25,274,868 24,243,220
7%, 11/15/08-1/15/24 3,075,257 3,064,133
7.50%, 1/15/09-6/15/24 7,356,558 7,441,467
8%, 5/15/17 1,228,703 1,272,716
-----------------------------------------------------------------------------------------------
Green Tree Financial Corp., Series 1994-7, Cl. A3, 8%,
3/15/20 1,500,000 1,528,125
-----------------------------------------------------------------------------------------------
Housing Securities, Inc., Series 1994-3, Cl. A3, 7.25%,
9/25/12 1,087,986 1,088,666
-----------------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Series 1996-A,
Cl. A4, 5.85%, 7/15/01 4,000,000 3,976,250
--------------
Total Mortgage-Backed Obligations (Cost $98,688,070) 99,211,817
</TABLE>
1
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 13.4%
- -----------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.27%, 1/2/97 $ 18,000,000 $ 17,997,365
-----------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.40%, 1/14/97 20,000,000 19,956,500
5.29%, 1/14/97 20,000,000 19,961,505
5.33%, 1/7/97 10,000,000 9,991,117
-----------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
5.27%, 1/3/97 22,000,000 21,993,559
5.28%, 1/6/97-1/9/97 40,000,000 39,961,866
5.30%, 1/8/97 20,000,000 19,979,389
---------------
Total U.S. Government Agencies (Cost $149,841,301) 149,841,301
- -----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 10.3%
- -----------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
10.375%, 11/15/12 3,000,000 3,865,314
7.50%, 11/15/16 60,775,000 65,788,993
8.75%, 5/15/17 3,000,000 3,659,064
8.875%, 8/15/17 1,000,000 1,234,688
STRIPS, Zero Coupon, 7.835%, 5/15/15 (2) 2,250,000 648,385
-----------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.50%, 8/15/05 10,000,000 10,071,880
6.75%, 6/30/99 15,000,000 15,267,194
7.25%, 8/15/04 14,960,000 15,754,764
---------------
Total U.S. Government Obligations (Cost $112,780,257) 116,290,282
- -----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 0.2%
- -----------------------------------------------------------------------------------------------------
Colombia (Republic of) Unsub. Nts., 7.125%, 5/11/98 600,000 605,625
-----------------------------------------------------------------------------------------------
United Mexican States Bonds, 6.97%, 8/12/00 1,750,000 1,671,250
---------------
Total Foreign Government Obligations (Cost $2,301,362) 2,276,875
- -----------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 21.3%
- -----------------------------------------------------------------------------------------------------
BASIC MATERIALS - 2.4%
- -----------------------------------------------------------------------------------------------------
CHEMICALS - 1.3%
-----------------------------------------------------------------------------------------------
Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 2,000,000
2,021,500
-----------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co., 8.50% Debs., 2/15/03 2,320,000 2,478,880
-----------------------------------------------------------------------------------------------
FMC Corp., 8.75% Sr. Nts., 4/1/99 2,500,000 2,610,300
-----------------------------------------------------------------------------------------------
Lyondell Petrochemical Co., 8.25% Nts., 3/15/97 3,500,000 3,515,428
-----------------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts.,
6/1/20 2,512,000 3,076,722
-----------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 1,190,000 1,420,092
---------------
15,122,922
- -----------------------------------------------------------------------------------------------------
METALS - 0.4%
-----------------------------------------------------------------------------------------------
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 4,000,000 4,347,080
- -----------------------------------------------------------------------------------------------------
PAPER - 0.7%
-----------------------------------------------------------------------------------------------
Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 2,250,000 2,272,500
-----------------------------------------------------------------------------------------------
Fort Howard Corp., 9.25% Sr. Nts., 3/15/01 2,000,000 2,085,000
</TABLE>
2
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
PAPER (CONTINUED)
-----------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 9.85% Credit Sensitive Nts.,
6/15/97 $ 2,950,000 $ 3,001,757
--------------
7,359,257
- ----------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 2.9%
- ----------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.2%
-----------------------------------------------------------------------------------------------
Black & Decker Corp., 6.625% Nts., 11/15/00 2,700,000 2,699,492
- ----------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.2%
-----------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp., 6.625% Sr. Nts., 2/15/98 1,750,000 1,755,888
-----------------------------------------------------------------------------------------------
Dresser Industries, Inc., 6.25% Nts., 6/1/00 6,000,000 5,945,706
-----------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A,
3/30/01 5,350,000 5,331,333
--------------
13,032,927
- ----------------------------------------------------------------------------------------------------
MEDIA - 0.8%
-----------------------------------------------------------------------------------------------
Reed Elsevier, Inc., 6.625% Nts., 10/15/23 (3) 1,600,000 1,431,104
-----------------------------------------------------------------------------------------------
Tele-Communications, Inc., 7.14% Sr. Medium-Term Nts.,
2/3/98 3,100,000 3,118,749
-----------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 3,900,000 3,951,199
--------------
8,501,052
- ----------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 0.7%
-----------------------------------------------------------------------------------------------
Dayton Hudson Co., 9.40% Debs., 2/15/01 820,000 897,301
-----------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 1,770,000 1,922,437
-----------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 2,000,000 1,980,358
-----------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 1,590,000
1,661,062
-----------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc., 5.875% Nts., 10/15/05 2,000,000 1,876,790
--------------
8,337,948
- ----------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 1.8%
- ----------------------------------------------------------------------------------------------------
BEVERAGES - 0.2%
-----------------------------------------------------------------------------------------------
Bass America, Inc., 6.75% Gtd. Nts., 8/1/99 1,250,000 1,261,077
-----------------------------------------------------------------------------------------------
Fomento Economico Mexico SA, 9.50% Unsub. Nts.,
7/22/97 1,300,000 1,316,250
--------------
2,577,327
- ----------------------------------------------------------------------------------------------------
FOOD - 0.9%
-----------------------------------------------------------------------------------------------
ConAgra, Inc., 9.75% Sr. Nts., 11/1/97 1,500,000 1,546,110
-----------------------------------------------------------------------------------------------
CPC International, Inc., 6.15% Unsec. Nts., Series C,
1/15/06 2,000,000 1,908,744
-----------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 3,500,000 3,513,275
-----------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 2,000,000 2,048,380
-----------------------------------------------------------------------------------------------
Safeway, Inc., 9.35% Sr. Sub. Nts., 3/15/99 1,000,000 1,051,968
--------------
10,068,477
- ----------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 0.2%
-----------------------------------------------------------------------------------------------
Roche Holdings, Inc., 2.75% Bonds, 4/14/00 3,000,000 2,730,000
- ----------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 0.2%
-----------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 8.625% Sr. Unsec. Nts., 12/1/03 2,000,000 2,125,000
- ----------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.3%
-----------------------------------------------------------------------------------------------
Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 2,000,000 2,015,000
-----------------------------------------------------------------------------------------------
Procter & Gamble Co., 9.36% Debs., 1/1/21 750,000 914,229
--------------
2,929,229
</TABLE>
3
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
ENERGY - 3.3%
- ---------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 2.3%
----------------------------------------------------------------------------------------------------
Coastal Corp., 8.125% Sr. Nts., 9/15/02 $ 3,190,000 $ 3,381,078
----------------------------------------------------------------------------------------------------
Colorado International Gas Corp., 10% Sr. Debs., 6/15/05 455,000 539,230
----------------------------------------------------------------------------------------------------
Columbia Gas System, Inc., 6.80% Nts., Series C,
11/28/05 2,000,000 1,968,894
----------------------------------------------------------------------------------------------------
Falcon Drilling Co., Inc., 9.75% Sr. Nts., Series B, 1/15/01 2,430,000 2,548,462
----------------------------------------------------------------------------------------------------
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts.,
Series A, 8/1/01 2,000,000 2,117,500
----------------------------------------------------------------------------------------------------
HNG Internorth/Enron Corp., 9.625% Debs., 3/15/06 700,000 821,956
----------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 4,000,000
4,044,860
----------------------------------------------------------------------------------------------------
NorAm Energy Corp.:
8.43% Medium-Term Nts., Series B, 9/17/98 2,000,000 2,064,336
9.875% Nts., 4/15/97 3,000,000 3,032,994
----------------------------------------------------------------------------------------------------
Petroliam Nasional Berhad, 6.875% Nts., 7/1/03 (3) 2,500,000 2,516,160
----------------------------------------------------------------------------------------------------
TransCanada PipeLines Ltd., 9.875% Debs., 1/1/21 2,250,000 2,822,445
------------
25,857,915
- ---------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 1.0%
----------------------------------------------------------------------------------------------------
BP America, Inc., 8.875% Gtd. Debs., 12/1/97 1,000,000 1,026,031
----------------------------------------------------------------------------------------------------
Occidental Petroleum Corp., 6.27% Medium-Term Nts., 11/8/00 4,000,000
3,956,476
----------------------------------------------------------------------------------------------------
Phillips Petroleum Co., 7.53% Pass-Through Certificates,
Series 1994-A1, 9/27/98 2,566,442 2,595,906
----------------------------------------------------------------------------------------------------
Standard Oil/British Petroleum Co. plc, 9% Debs., 6/1/19 3,190,000 3,358,502
----------------------------------------------------------------------------------------------------
Texaco Capital, Inc., 8.875% Gtd. Debs., 9/1/21 500,000 590,300
------------
11,527,215
- ---------------------------------------------------------------------------------------------------------
FINANCIAL - 7.8%
- ---------------------------------------------------------------------------------------------------------
BANKS - 1.0%
----------------------------------------------------------------------------------------------------
BankAmerica Corp., 7.75% Sub. Nts., 7/15/02 1,250,000 1,308,486
----------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New), 10.125% Sub. Nts.,
11/1/00 1,000,000 1,119,846
----------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 2,135,000 2,067,088
----------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts.,
4/1/98 1,500,000 1,538,953
----------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 750,000 840,046
----------------------------------------------------------------------------------------------------
Marshall & Ilsley Corp., 6.95% Medium-Term Nts.,
Series C, 3/31/97 1,500,000 1,505,065
----------------------------------------------------------------------------------------------------
Mellon Capital I, 7.72% Bonds, 12/1/26 1,250,000 1,215,875
----------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 1,350,000
1,357,014
----------------------------------------------------------------------------------------------------
Shawmut Corp., 8.125% Debs., 2/1/97 500,000 500,823
------------
11,453,196
- ---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 6.1%
----------------------------------------------------------------------------------------------------
American General Finance Corp.:
5.875% Sr. Nts., 7/1/00 1,500,000 1,471,798
7.70% Sr. Nts., 11/15/97 2,000,000 2,029,200
----------------------------------------------------------------------------------------------------
Aristar, Inc., 8.125% Sr. Nts., 12/1/97 1,250,000 1,273,859
----------------------------------------------------------------------------------------------------
Associates Corp. of North America, 6.75% Sr. Nts.,
10/15/99 1,500,000 1,514,907
</TABLE>
4
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL (CONTINUED)
----------------------------------------------------------------------------------------------------
AVCO Financial Services Asia Ltd., 5.875% Sr. Nts.,
10/15/97 $ 1,500,000 $ 1,500,826
----------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 2,500,000 2,512,900
----------------------------------------------------------------------------------------------------
Capital One Funding Corp., 7.25% Nts., 12/1/03 2,300,000 2,277,000
----------------------------------------------------------------------------------------------------
Chelsea GCA Realty Partner, Inc., 7.75% Gtd. Unsec.
Unsub. Nts., 1/26/01 3,220,000 3,260,887
----------------------------------------------------------------------------------------------------
Chrysler Financial Corp.:
5.08% Medium-Term Nts., 1/24/97 2,000,000 1,999,582
5.875% Nts., 2/7/01 1,500,000 1,462,309
----------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 4,000,000 3,855,148
----------------------------------------------------------------------------------------------------
Countrywide Funding Corp.:
6.05% Gtd. Medium-Term Nts., Series D, 3/1/01 1,285,000 1,257,855
6.085% Gtd. Medium-Term Nts., Series B, 7/14/99 1,800,000 1,789,020
6.57% Gtd. Medium-Term Nts., Series A, 8/4/97 1,000,000 1,004,950
----------------------------------------------------------------------------------------------------
Fleet Mtg. Group, Inc.:
6.125% Nts., 8/15/97 3,000,000 3,006,222
6.50% Nts., 9/15/99 750,000 752,214
----------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
6.25% Unsub. Nts., 2/26/98 1,000,000 1,005,620
8% Nts., 12/1/97 1,000,000 1,018,094
----------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.625% Nts., 2/15/01 1,200,000 1,157,237
5.65% Medium-Term Nts., 12/15/97 2,000,000 1,996,452
7.75% Medium-Term Nts., 1/17/97 2,500,000 2,502,190
----------------------------------------------------------------------------------------------------
Golden West Financial Corp.:
10.25% Sub. Nts., 5/15/97 1,250,000 1,269,634
8.625% Sub. Nts., 8/30/98 500,000 518,752
----------------------------------------------------------------------------------------------------
Grand Metropolitan plc, 7% Gtd. Nts., 6/15/99 3,000,000 3,048,750
----------------------------------------------------------------------------------------------------
Household Finance Corp.:
7.50% Nts., 3/15/97 250,000 250,840
8.95% Debs., 9/15/99 1,200,000 1,275,348
----------------------------------------------------------------------------------------------------
Household International BV, 6% Gtd. Sr. Nts., 3/15/99 1,500,000 1,485,937
----------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
6% Nts., 3/1/01 1,500,000 1,467,079
6.50% Nts., 4/1/01 2,500,000 2,488,977
----------------------------------------------------------------------------------------------------
Norsk Hydro AS, 8.75% Bonds, 10/23/01 1,500,000 1,631,250
----------------------------------------------------------------------------------------------------
Norwest Financial, Inc., 6.50% Sr. Nts., 11/15/97 1,500,000 1,508,571
----------------------------------------------------------------------------------------------------
Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99 3,250,000
3,359,580
----------------------------------------------------------------------------------------------------
PHH Corp., 6.50% Nts., 2/1/00 1,250,000 1,252,542
----------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D,
3/1/99 4,000,000 4,172,992
----------------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.99% Medium-Term
Nts., Series 1, 12/26/00 2,000,000 1,963,650
----------------------------------------------------------------------------------------------------
TransAmerica Finance Corp.:
6.75% Sr. Nts., 8/15/97 2,000,000 2,011,384
6.80% Sr. Nts., 3/15/99 725,000 732,411
----------------------------------------------------------------------------------------------------
U.S. Leasing International, 7% Nts., 11/1/97 1,500,000 1,513,263
------------
68,599,230
</TABLE>
5
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
INSURANCE - 0.7%
----------------------------------------------------------------------------------------------------
Cigna Corp., 7.90% Nts., 12/14/98 $ 320,000 $ 329,248
----------------------------------------------------------------------------------------------------
Equitable Life Assurance Society (U.S.A.), 6.95% Surplus
Nts., 12/1/05 (3) 2,000,000 1,962,524
----------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 1,700,000 1,778,968
----------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., 6.75% Nts.,
4/15/01 3,500,000 3,518,725
7,589,465
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL - 1.7%
- ---------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.3%
----------------------------------------------------------------------------------------------------
Honeywell, Inc., 6.60% Nts., 4/15/01 3,000,000 3,005,106
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.3%
----------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 2,750,000 2,942,500
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.2%
----------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Gtd. Sr. Nts., 12/1/06 (4) 2,860,000
2,820,675
- ---------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.2%
----------------------------------------------------------------------------------------------------
Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03 2,200,000 2,279,750
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.7%
----------------------------------------------------------------------------------------------------
Federal Express Corp., 6.25% Nts., 4/15/98 3,485,000 3,487,523
----------------------------------------------------------------------------------------------------
Union Pacific Corp.:
7% Nts., 6/15/00 2,030,000 2,060,340
7.60% Nts., 5/1/05 2,000,000 2,069,972
------------
7,617,835
- ---------------------------------------------------------------------------------------------------------
TECHNOLOGY - 0.6%
- ---------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.1%
----------------------------------------------------------------------------------------------------
British Aerospace plc, 8% Debs., 5/27/97 1,500,000 1,512,187
- ---------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 0.2%
----------------------------------------------------------------------------------------------------
Electric Data Systems Corp., 7.125% Nts., 5/15/05 (3) 2,000,000 2,030,160
- ---------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 0.3%
----------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 10.625% Sr. Sub. Nts.,
6/15/02 750,000 804,313
----------------------------------------------------------------------------------------------------
MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 2,000,000
2,037,414
------------
2,841,727
- ---------------------------------------------------------------------------------------------------------
UTILITIES - 0.8%
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.4%
----------------------------------------------------------------------------------------------------
Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 2,000,000 2,046,714
----------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A,
2/1/99 2,000,000 2,012,500
------------
4,059,214
- ---------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.2%
----------------------------------------------------------------------------------------------------
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 2,000,000
1,999,136
- ---------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.2%
----------------------------------------------------------------------------------------------------
GTE Corp., 8.85% Debs., 3/1/98 2,350,000 2,421,038
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $239,083,616)
238,387,060
6
</TABLE>
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION> MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS - 46.0%
- --------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.5%
- --------------------------------------------------------------------------------------------
CHEMICALS - 0.6%
---------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 81,500 $ 6,927,500
- --------------------------------------------------------------------------------------------
PAPER - 0.9%
---------------------------------------------------------------------------------------
Fort Howard Corp. (5) 362,500 10,036,719
- --------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 3.5%
- --------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.3%
---------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 58,500 3,085,875
- --------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.0%
---------------------------------------------------------------------------------------
AMR Corp. (5) 67,100 5,913,187
---------------------------------------------------------------------------------------
Galoob Toys, Inc. (5) 27,400 383,600
---------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (5) 125,900 4,925,837
------------
11,222,624
- --------------------------------------------------------------------------------------------
RETAIL: GENERAL - 1.5%
---------------------------------------------------------------------------------------
Federated Department Stores, Inc. (5) 208,800 7,125,300
---------------------------------------------------------------------------------------
Price/Costco, Inc. (5) 402,600 10,115,325
------------
17,240,625
- --------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 0.7%
---------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (5) 279,600 8,388,000
- --------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 6.4%
- --------------------------------------------------------------------------------------------
BEVERAGES - 0.9%
---------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 249,800 9,992,000
- --------------------------------------------------------------------------------------------
FOOD - 2.4%
---------------------------------------------------------------------------------------
American Stores Co. 222,600 9,098,775
---------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 399,290 8,784,380
---------------------------------------------------------------------------------------
Kroger Co. (5) 192,900 8,969,850
------------
26,853,005
- --------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 0.6%
---------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 59,800 6,503,250
- --------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.5%
---------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 187,150 7,626,362
---------------------------------------------------------------------------------------
OrNda Healthcorp (5) 229,200 6,704,100
---------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. (5) 81,900 2,815,312
------------
17,145,774
- --------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.0%
---------------------------------------------------------------------------------------
Premark International, Inc. 352,300 7,838,675
---------------------------------------------------------------------------------------
Tupperware Corp. 65,800 3,528,525
------------
11,367,200
- --------------------------------------------------------------------------------------------
ENERGY - 3.2%
Amoco Corp. 115,400 9,289,700
---------------------------------------------------------------------------------------
Chevron Corp. 172,500 11,212,500
---------------------------------------------------------------------------------------
Exxon Corp. 65,800 6,448,400
---------------------------------------------------------------------------------------
Mobil Corp. 70,200 8,581,950
------------
35,532,550
- --------------------------------------------------------------------------------------------
FINANCIAL - 9.0%
- --------------------------------------------------------------------------------------------
BANKS - 4.6%
---------------------------------------------------------------------------------------
Bank of Boston Corp. 178,600 11,475,050
---------------------------------------------------------------------------------------
BankAmerica Corp. 166,800 16,638,300
</TABLE>
7
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION> MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANKS (CONTINUED)
- --------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 76,900 $ 6,863,325
---------------------------------------------------------------------------------------
NationsBank Corp. 93,100 9,100,525
---------------------------------------------------------------------------------------
PNC Bank Corp. 200,100 7,528,762
-------------
51,605,962
- --------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.1%
---------------------------------------------------------------------------------------
Salomon, Inc. 85,300 4,019,762
---------------------------------------------------------------------------------------
Travelers Group, Inc. 173,400 7,868,025
-------------
11,887,787
- --------------------------------------------------------------------------------------------
INSURANCE - 3.3%
---------------------------------------------------------------------------------------
AFLAC, Inc. 209,300 8,947,575
---------------------------------------------------------------------------------------
Conseco, Inc. 106,600 6,795,750
---------------------------------------------------------------------------------------
General Re Corp. 54,900 8,660,475
---------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 342,900 12,130,087
-------------
36,533,887
- --------------------------------------------------------------------------------------------
INDUSTRIAL - 8.3%
- --------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.3%
---------------------------------------------------------------------------------------
DT Industries, Inc. 98,400 3,444,000
- --------------------------------------------------------------------------------------------
MANUFACTURING - 7.3%
---------------------------------------------------------------------------------------
AGCO Corp. 260,700 7,462,537
---------------------------------------------------------------------------------------
Case Corp. 183,100 9,978,950
---------------------------------------------------------------------------------------
Deere & Co. 211,400 8,588,125
---------------------------------------------------------------------------------------
General Signal Corp. 167,400 7,156,350
---------------------------------------------------------------------------------------
Ingersoll-Rand Co. 177,700 7,907,650
---------------------------------------------------------------------------------------
Mark IV Industries, Inc. 137,534 3,111,707
---------------------------------------------------------------------------------------
PACCAR, Inc. 113,100 7,690,800
---------------------------------------------------------------------------------------
Textron, Inc. 152,400 14,363,700
---------------------------------------------------------------------------------------
Tyco International Ltd. 117,200 6,196,950
---------------------------------------------------------------------------------------
U.S. Industries, Inc. (5) 291,200 10,010,000
-------------
82,466,769
- --------------------------------------------------------------------------------------------
TRANSPORTATION - 0.7%
---------------------------------------------------------------------------------------
Union Pacific Corp. 123,900 7,449,487
- --------------------------------------------------------------------------------------------
TECHNOLOGY - 7.8%
- --------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 4.9%
---------------------------------------------------------------------------------------
General Dynamics Corp. 123,200 8,685,600
---------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 102,000 4,131,000
---------------------------------------------------------------------------------------
Lockheed Martin Corp. 113,151 10,353,317
---------------------------------------------------------------------------------------
McDonnell Douglas Corp. 213,400 13,657,600
---------------------------------------------------------------------------------------
Rockwell International Corp. 139,300 8,479,888
---------------------------------------------------------------------------------------
Rockwell International Corp. 22,800 1,387,950
---------------------------------------------------------------------------------------
TRW, Inc. 162,200 8,028,900
-------------
54,724,255
- --------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 2.0%
---------------------------------------------------------------------------------------
Dell Computer Corp. (5) 128,400 6,821,250
---------------------------------------------------------------------------------------
Gateway 2000, Inc. (5) 72,500 3,883,281
---------------------------------------------------------------------------------------
Storage Technology Corp. (New) (5) 246,100 11,720,513
-------------
22,425,044
</TABLE>
8
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS - 0.9%
---------------------------------------------------------------------------------------
Intel Corp. 61,400 $ 8,039,563
---------------------------------------------------------------------------------------
Waters Corp. (5) 57,500 1,746,563
-------------
9,786,126
- --------------------------------------------------------------------------------------------
UTILITIES - 6.3%
- --------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.3%
---------------------------------------------------------------------------------------
American Electric Power Co., Inc. 94,700 3,894,538
---------------------------------------------------------------------------------------
CalEnergy, Inc. (5) 161,100 5,416,988
---------------------------------------------------------------------------------------
Entergy Corp. 215,800 5,988,450
---------------------------------------------------------------------------------------
FPL Group, Inc. 135,100 6,214,600
---------------------------------------------------------------------------------------
Texas Utilities Co. 120,500 4,910,375
-------------
26,424,951
- --------------------------------------------------------------------------------------------
GAS UTILITIES - 3.4%
---------------------------------------------------------------------------------------
Columbia Gas System, Inc. 284,300 18,088,588
---------------------------------------------------------------------------------------
PanEnergy Corp. 338,200 15,219,000
---------------------------------------------------------------------------------------
Questar Corp. 128,800 4,733,400
-------------
38,040,988
- --------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.6%
---------------------------------------------------------------------------------------
GTE Corp. 158,700 7,220,850
Total Common Stocks (Cost $441,743,218) 516,305,228
---------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,044,437,823) 100.0%
1,122,312,563
---------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0) (236,895)
------- -------------
NET ASSETS 100.0% $ 1,122,075,668
------- -------------
------- -------------
</TABLE>
1. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities
typically decline in price as interest rates decline. Most other fixed-
income securities increase in price when interest rates decline. The
principal amount of the underlying pool represents the notional amount on
which current interest is calculated. The price of these securities is
typically more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs). Interest
rates disclosed represent current yields based upon the current cost basis
and estimated timing and amount of future cash flows.
2. For zero coupon bonds, the interest rate shown is the effective yield on
the date of purchase.
3. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Board
of Directors. These securities amount to $7,939,948 or 0.71% of the Fund's
net assets, at December 31, 1996.
4. Identifies issues considered to be illiquid. These securities amount to
$2,820,675 or 0.25% of the Fund's net assets, at December 31, 1996.
5. Non-income producing security.
See accompanying Notes to Financial Statements.
9
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES - 10.8%
- -----------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.38%, 1/10/97 $ 10,000,000 $ 9,986,550
5.29%, 1/14/97 20,000,000 19,961,795
5.33%, 1/7/97 10,000,000 9,991,117
5.37%, 1/8/97 10,000,000 9,989,558
5.70%, 1/2/97 3,000,000 2,999,458
-------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.40%, 1/13/97 10,000,000 9,982,000
-----------
Total U.S. Government Agencies (Cost $62,910,478) 62,910,478
SHARES
- -----------------------------------------------------------------------------------------
COMMON STOCKS - 90.3%
- -----------------------------------------------------------------------------------------
BASIC MATERIALS - 2.9%
- -----------------------------------------------------------------------------------------
CHEMICALS - 1.2%
-------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 81,500 6,927,500
- -----------------------------------------------------------------------------------------
PAPER - 1.7%
-------------------------------------------------------------------------------------
Fort Howard Corp. (1) 357,500 9,898,281
- -----------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 7.2%
- -----------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.6%
-------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 65,300 3,444,575
- -----------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 2.2%
-------------------------------------------------------------------------------------
AMR Corp. (1) 77,300 6,812,062
-------------------------------------------------------------------------------------
Galoob Toys, Inc. (1) 39,700 555,800
-------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (1) 136,700 5,348,387
-----------
12,716,249
- -----------------------------------------------------------------------------------------
RETAIL: GENERAL - 2.9%
-------------------------------------------------------------------------------------
Federated Department Stores, Inc. (1) 251,100 8,568,787
-------------------------------------------------------------------------------------
Price/Costco, Inc. (1) 334,400 8,401,800
16,970,587
- -----------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 1.5%
-------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (1) 294,500 8,835,000
- -----------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 12.3%
- -----------------------------------------------------------------------------------------
BEVERAGES - 1.4%
-------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 208,000 8,320,000
- -----------------------------------------------------------------------------------------
FOOD - 4.7%
-------------------------------------------------------------------------------------
American Stores Co. 243,800 9,965,325
-------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 394,170 8,671,740
-------------------------------------------------------------------------------------
Kroger Co. (1) 196,800 9,151,200
-----------
27,788,265
- -----------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 1.0%
-------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 54,900 5,970,375
- -----------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 3.1%
-------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 154,950 6,314,212
-------------------------------------------------------------------------------------
OrNda Healthcorp (1) 287,800 8,418,150
-------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. (1) 104,900 3,605,937
-----------
18,338,299
</TABLE>
10
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOUSEHOLD GOODS - 2.1%
-------------------------------------------------------------------------------------
Premark International, Inc. 397,600 $ 8,846,600
-------------------------------------------------------------------------------------
Tupperware Corp. 64,100 3,437,362
-----------
12,283,962
- -----------------------------------------------------------------------------------------
ENERGY - 6.5%
- -----------------------------------------------------------------------------------------
Amoco Corp. 108,100 8,702,050
-------------------------------------------------------------------------------------
Chevron Corp. 187,300 12,174,500
-------------------------------------------------------------------------------------
Exxon Corp. 88,700 8,692,600
-------------------------------------------------------------------------------------
Mobil Corp. 72,200 8,826,450
-----------
38,395,600
- -----------------------------------------------------------------------------------------
FINANCIAL - 16.9%
- -----------------------------------------------------------------------------------------
BANKS - 8.5%
-------------------------------------------------------------------------------------
Bank of Boston Corp. 168,100 10,800,425
-------------------------------------------------------------------------------------
BankAmerica Corp. 147,300 14,693,175
-------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 88,300 7,880,775
-------------------------------------------------------------------------------------
NationsBank Corp. 89,300 8,729,075
-------------------------------------------------------------------------------------
PNC Bank Corp. 208,200 7,833,525
-----------
49,936,975
- -----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.4%
-------------------------------------------------------------------------------------
Salomon, Inc. 125,400 5,909,475
-------------------------------------------------------------------------------------
Travelers Group, Inc. 185,400 8,412,525
-----------
14,322,000
- -----------------------------------------------------------------------------------------
INSURANCE - 6.0%
-------------------------------------------------------------------------------------
AFLAC, Inc. 196,800 8,413,200
-------------------------------------------------------------------------------------
Conseco, Inc. 106,200 6,770,250
-------------------------------------------------------------------------------------
General Re Corp. 55,200 8,707,800
-------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 323,800 11,454,425
-----------
35,345,675
- -----------------------------------------------------------------------------------------
INDUSTRIAL - 16.8%
- -----------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.9%
-------------------------------------------------------------------------------------
DT Industries, Inc. 146,800 5,138,000
- -----------------------------------------------------------------------------------------
MANUFACTURING - 14.6%
-------------------------------------------------------------------------------------
AGCO Corp. 263,800 7,551,275
-------------------------------------------------------------------------------------
Case Corp. 181,600 9,897,200
-------------------------------------------------------------------------------------
Deere & Co. 231,700 9,412,812
-------------------------------------------------------------------------------------
General Signal Corp. 178,600 7,635,150
-------------------------------------------------------------------------------------
Ingersoll-Rand Co. 189,800 8,446,100
-------------------------------------------------------------------------------------
Mark IV Industries, Inc. 118,518 2,681,470
-------------------------------------------------------------------------------------
PACCAR, Inc. 115,900 7,881,200
-------------------------------------------------------------------------------------
Textron, Inc. 129,600 12,214,800
-------------------------------------------------------------------------------------
Tyco International Ltd. 157,100 8,306,663
-------------------------------------------------------------------------------------
U.S. Industries, Inc. (1) 336,200 11,556,875
-----------
85,583,545
- -----------------------------------------------------------------------------------------
TRANSPORTATION - 1.3%
-------------------------------------------------------------------------------------
Union Pacific Corp. 127,500 7,665,938
- -----------------------------------------------------------------------------------------
TECHNOLOGY - 15.5%
- -----------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 9.3%
-------------------------------------------------------------------------------------
General Dynamics Corp. 114,700 8,086,350
-------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 128,000 5,184,000
</TABLE>
11
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
AEROSPACE/DEFENSE (CONTINUED)
-------------------------------------------------------------------------------------
Lockheed Martin Corp. 110,452 $ 10,106,358
-------------------------------------------------------------------------------------
McDonnell Douglas Corp. 206,400 13,209,600
-------------------------------------------------------------------------------------
Rockwell International Corp. 146,600 8,924,275
-------------------------------------------------------------------------------------
TRW, Inc. 179,000 8,860,500
-----------
54,371,083
- -----------------------------------------------------------------------------------------
COMPUTER HARDWARE - 4.3%
-------------------------------------------------------------------------------------
Dell Computer Corp. (1) 134,200 7,129,375
-------------------------------------------------------------------------------------
Gateway 2000, Inc. (1) 81,900 4,386,769
-------------------------------------------------------------------------------------
Storage Technology Corp. (New) (1) 286,100 13,625,513
-----------
25,141,657
- -----------------------------------------------------------------------------------------
ELECTRONICS - 1.9%
-------------------------------------------------------------------------------------
Intel Corp. 65,800 8,615,688
-------------------------------------------------------------------------------------
Waters Corp. (1) 73,500 2,232,563
-----------
10,848,251
- -----------------------------------------------------------------------------------------
UTILITIES - 12.2%
- -----------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 4.9%
-------------------------------------------------------------------------------------
American Electric Power Co., Inc. 113,800 4,680,025
-------------------------------------------------------------------------------------
CalEnergy, Inc. (1) 189,600 6,375,300
-------------------------------------------------------------------------------------
Entergy Corp. 221,300 6,141,075
-------------------------------------------------------------------------------------
FPL Group, Inc. 116,700 5,368,200
-------------------------------------------------------------------------------------
Texas Utilities Co. 149,400 6,088,050
-----------
28,652,650
- -----------------------------------------------------------------------------------------
GAS UTILITIES - 6.1%
-------------------------------------------------------------------------------------
Columbia Gas System, Inc. 268,300 17,070,588
-------------------------------------------------------------------------------------
PanEnergy Corp. 303,100 13,639,500
-------------------------------------------------------------------------------------
Questar Corp. 137,700 5,060,475
-----------
35,770,563
- -----------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.2%
-------------------------------------------------------------------------------------
GTE Corp. 150,800 6,861,400
-----------
Total Common Stocks (Cost $415,283,467) 529,526,430
-------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $478,193,945) 101.1%
592,436,908
-------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.1) (6,214,630)
----------- -----------
NET ASSETS 100.0% $ 586,222,278
----------- -----------
----------- -----------
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
12
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARLET VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 29.4%
- -----------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED - 17.2%
-------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates, 10.50%, 10/1/20 $ 225,812 $ 250,015
Mtg.-Backed Certificates, 6.11%, 7/31/98 1,000,000 1,003,120
Mtg.-Backed Certificates, 7.125%, 7/21/99 1,000,000 1,024,395
-------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6.50%, 12/1/23 818,040 784,787
6.50%, 2/1/09 212,612 210,193
7.50%, 9/1/22 708,355 712,209
---------------
3,984,719
- -----------------------------------------------------------------------------------------------------
GNMA/GUARANTEED - 12.2%
-------------------------------------------------------------------------------------------------
Government National Mortgage Assn., 7%,
10/15/23-3/15/26 2,895,662 2,843,038
---------------
Total Mortgage-Backed Obligations (Cost $6,932,430) 6,827,757
- -----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 5.2%
- -----------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.84%, 9/8/97 1,000,000 1,001,250
-------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.70%, 1/2/97 200,000 199,964
---------------
Total U.S. Government Agencies (Cost $1,199,842) 1,201,214
- -----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 56.7%
- -----------------------------------------------------------------------------------------------------
AGENCY - 8.6%
- -----------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, Medium-Term Nts., 6.37%,
9/1/00 1,000,000 1,003,120
-------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.725%, 6/15/98 1,000,000 998,199
---------------
2,001,319
- -----------------------------------------------------------------------------------------------------
TREASURY - 48.1%
- -----------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
7.50%, 11/15/16 2,175,000 2,354,440
8.125%, 8/15/19 500,000 577,969
9.25%, 2/15/16 1,200,000 1,522,876
-------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.50%, 7/31/97 1,350,000 1,348,735
5.75%, 8/15/03 500,000 485,156
6.75%, 2/28/97 875,000 876,641
7.25%, 8/15/04 2,700,000 2,843,440
7.50%, 11/15/01 405,000 426,516
7.50%, 2/15/05 500,000 535,000
8.50%, 2/15/00 200,000 213,625
---------------
11,184,398
---------------
Total U.S. Government Obligations (Cost $13,038,629) 13,185,717
</TABLE>
13
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS AND NOTES - 6.7%
- -----------------------------------------------------------------------------------------------------
Private Export Funding Corp.:
6.90% Nts., 1/31/03 $ 500,000 $ 511,272
7.30% Debs., 1/31/02 1,000,000 1,039,707
---------------
Total Corporate Bonds and Notes (Cost $1,627,081) 1,550,979
-------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $22,797,982) 98.0%
22,765,667
-------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.0 469,911
--------- ---------------
NET ASSETS 100.0% $ 23,235,578
--------- ---------------
--------- ---------------
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS - 97.0%
- -------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.8%
- -------------------------------------------------------------------------------------------------
CHEMICALS - 1.8%
--------------------------------------------------------------------------------------------
Daicel Chemical Industries Ltd. 101,000 $ 472,499
--------------------------------------------------------------------------------------------
Hoechst AG 14,000 647,715
-----------
1,120,214
- -------------------------------------------------------------------------------------------------
GOLD - 0.4%
--------------------------------------------------------------------------------------------
Normandy Mining Ltd. 171,130 236,502
- -------------------------------------------------------------------------------------------------
METALS - 1.6%
--------------------------------------------------------------------------------------------
RTZ Corp. plc 34,260 550,488
--------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 73,900 465,455
-----------
1,015,943
- -------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 24.6%
- -------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 6.3%
--------------------------------------------------------------------------------------------
Autoliv AB 20,000 875,802
--------------------------------------------------------------------------------------------
Bridgestone Corp. 22,000 416,990
--------------------------------------------------------------------------------------------
Cheung Kong (Holdings) Ltd. 80,000 711,054
--------------------------------------------------------------------------------------------
Groupe SEB SA 4,000 782,498
--------------------------------------------------------------------------------------------
Honda Motor Co. 25,000 712,932
--------------------------------------------------------------------------------------------
Rinnai Corp. 22,000 441,630
-----------
3,940,906
- -------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 3.5%
--------------------------------------------------------------------------------------------
CDL Hotels International Ltd. 1,540,000 880,996
--------------------------------------------------------------------------------------------
EMI Group plc 29,000 685,419
--------------------------------------------------------------------------------------------
Granada Group plc 43,000 635,677
-----------
2,202,092
- -------------------------------------------------------------------------------------------------
MEDIA - 5.2%
--------------------------------------------------------------------------------------------
Benpres Holdings Corp., Sponsored GDR (1) 40,000 300,000
--------------------------------------------------------------------------------------------
Reed International plc 44,000 827,585
--------------------------------------------------------------------------------------------
Reuters Holdings plc 60,000 772,392
--------------------------------------------------------------------------------------------
Television Broadcasts Ltd. 175,000 699,095
--------------------------------------------------------------------------------------------
Wolters Kluwer NV (1) 5,000 663,396
-----------
3,262,468
- -------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 2.4%
--------------------------------------------------------------------------------------------
Marks & Spencer plc 100,000 842,796
--------------------------------------------------------------------------------------------
Zeneca Group plc 23,000 648,114
-----------
1,490,910
- -------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 7.2%
--------------------------------------------------------------------------------------------
adidas AG 8,000 690,412
--------------------------------------------------------------------------------------------
Cifra SA de CV, Unsponsored ADR, B Shares (1) 350,000 427,700
--------------------------------------------------------------------------------------------
Dickson Concepts International Ltd. 187,000 701,099
--------------------------------------------------------------------------------------------
Jusco Co. 16,000 541,742
--------------------------------------------------------------------------------------------
Koninklijke Ahold NV 11,000 686,810
--------------------------------------------------------------------------------------------
Next plc 93,000 906,468
--------------------------------------------------------------------------------------------
Shimamura Co. Ltd. 16,000 548,634
-----------
4,502,865
</TABLE>
15
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSUMER NON-CYCLICALS - 12.7%
- ------------------------------------------------------------------------------------------------
BEVERAGES - 1.3%
-------------------------------------------------------------------------------------------
Embotelladora Andina SA, Sponsored ADR 12,400 $ 378,200
-------------------------------------------------------------------------------------------
Quilmes Industrial Quinsa SA, Sponsored ADR 50,000 456,250
----------
834,450
- ------------------------------------------------------------------------------------------------
FOOD - 3.6%
-------------------------------------------------------------------------------------------
Carrefour Supermarche SA 1,200 779,266
-------------------------------------------------------------------------------------------
Danisco AS 10,000 606,892
-------------------------------------------------------------------------------------------
William Morrison Supermarkets plc 306,000 862,273
----------
2,248,431
- ------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 4.1%
-------------------------------------------------------------------------------------------
Astra AB Free, Series A 15,000 740,331
-------------------------------------------------------------------------------------------
Novartis AG (1) 550 627,941
-------------------------------------------------------------------------------------------
Schering AG 6,700 564,743
-------------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 31,000 649,005
----------
2,582,020
- ------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 2.0%
-------------------------------------------------------------------------------------------
Luxottica Group SpA, Sponsored ADR 12,000 624,000
-------------------------------------------------------------------------------------------
SmithKline Beecham plc 45,185 626,569
----------
1,250,569
- ------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.3%
-------------------------------------------------------------------------------------------
L'OREAL 2,100 789,307
- ------------------------------------------------------------------------------------------------
TOBACCO - 0.4%
-------------------------------------------------------------------------------------------
PT Gudang Garam (1) 64,000 276,317
- ------------------------------------------------------------------------------------------------
ENERGY - 1.5%
- ------------------------------------------------------------------------------------------------
Total SA, B Shares 11,157 905,653
- ------------------------------------------------------------------------------------------------
FINANCIAL - 14.2%
- ------------------------------------------------------------------------------------------------
BANKS - 4.3%
-------------------------------------------------------------------------------------------
Banco Popular Espanol SA 3,500 687,332
-------------------------------------------------------------------------------------------
HSBC Holdings plc 30,000 641,888
-------------------------------------------------------------------------------------------
Malayan Banking Berhad 62,000 687,387
-------------------------------------------------------------------------------------------
Overseas Union Bank Ltd. 90,000 694,872
----------
2,711,479
- ------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 8.8%
-------------------------------------------------------------------------------------------
First Pacific Co. Ltd. 422,000 548,300
-------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. 230,000 522,870
-------------------------------------------------------------------------------------------
ING Groep NV 16,032 576,498
-------------------------------------------------------------------------------------------
Lend Lease Corp. Ltd. 45,000 872,092
-------------------------------------------------------------------------------------------
Nichiei Co. Ltd. 9,000 659,860
-------------------------------------------------------------------------------------------
Perlis Plantations Berhad 175,000 543,950
-------------------------------------------------------------------------------------------
Southcorp Holdings Ltd. 200,000 635,404
-------------------------------------------------------------------------------------------
Swire Pacific Ltd., Cl. B 430,000 650,420
-------------------------------------------------------------------------------------------
United Industrial Corp. Ltd. 600,000 506,141
----------
5,515,535
- ------------------------------------------------------------------------------------------------
INSURANCE - 1.1%
-------------------------------------------------------------------------------------------
Sumitomo Marine & Fire Insurance Co. 110,000 682,347
</TABLE>
16
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL - 17.1%
- ------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 2.3%
-------------------------------------------------------------------------------------------
ABB AG 395 $ 489,808
-------------------------------------------------------------------------------------------
Johnson Electric Holdings Ltd. 300,000 829,994
-------------------------------------------------------------------------------------------
Mabuchi Motor Co. 2,800 140,639
----------
1,460,441
- ------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 4.4%
-------------------------------------------------------------------------------------------
Hays plc 78,000 750,911
-------------------------------------------------------------------------------------------
Kurita Water Industries Ltd. 29,000 584,647
-------------------------------------------------------------------------------------------
NGK Spark Plug Co. 61,000 667,442
-------------------------------------------------------------------------------------------
SGS Societe Generale de Surveillance Holding SA, Series B 300 735,075
----------
2,738,075
- ------------------------------------------------------------------------------------------------
MANUFACTURING - 9.2%
-------------------------------------------------------------------------------------------
Bic Corp. 6,000 897,910
-------------------------------------------------------------------------------------------
Canon Sales Co., Inc. 24,200 537,917
-------------------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 88,000 691,145
-------------------------------------------------------------------------------------------
Komatsu Ltd. 101,000 826,656
-------------------------------------------------------------------------------------------
Mannesmann AG 1,200 515,629
-------------------------------------------------------------------------------------------
NSK Ltd. 61,000 368,933
-------------------------------------------------------------------------------------------
Shinmaywa Industries Ltd. 30,000 220,470
-------------------------------------------------------------------------------------------
Sidel SA 10,000 686,705
-------------------------------------------------------------------------------------------
SMC Corp. 8,400 563,763
-------------------------------------------------------------------------------------------
Sophus Berendsen AS, Series B 3,700 475,444
----------
5,784,572
- ------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.2%
-------------------------------------------------------------------------------------------
Brambles Industries Ltd. 40,000 779,958
- ------------------------------------------------------------------------------------------------
TECHNOLOGY - 18.5%
- ------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 1.2%
-------------------------------------------------------------------------------------------
Canon, Inc. 33,000 727,837
- ------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 0.4%
-------------------------------------------------------------------------------------------
SAP AG, Preference 2,000 274,867
- ------------------------------------------------------------------------------------------------
ELECTRONICS - 10.6%
-------------------------------------------------------------------------------------------
Bowthorpe plc 111,000 861,348
-------------------------------------------------------------------------------------------
Electrocomponents plc 114,000 900,250
-------------------------------------------------------------------------------------------
Getronics NV 16,240 440,331
-------------------------------------------------------------------------------------------
Keyence Corp. 4,300 529,766
-------------------------------------------------------------------------------------------
Kyocera Corp. 9,000 559,835
-------------------------------------------------------------------------------------------
Matsushita Electric Industrial Co. 29,000 472,215
-------------------------------------------------------------------------------------------
Matsushita Electric Works Ltd. 40,000 343,586
-------------------------------------------------------------------------------------------
Nitto Denko Corp. 52,000 761,609
-------------------------------------------------------------------------------------------
Samsung Electronics Co., Sponsored GDR (2) 18,000 332,100
-------------------------------------------------------------------------------------------
Sony Corp. 13,000 850,090
-------------------------------------------------------------------------------------------
TDK Corp. 9,000 585,423
----------
6,636,553
- ------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 6.3%
-------------------------------------------------------------------------------------------
British Sky Broadcasting Group plc 65,000 581,221
-------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 21,560 650,843
-------------------------------------------------------------------------------------------
Royal PTT Nederland NV 18,000 685,769
-------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd. 110,000 561,131
</TABLE>
17
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY (CONTINUED)
- ------------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 67,000 $ 95,620
- ------------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 200,000 505,603
- ------------------------------------------------------------------------------------------------
Vodafone Group plc 197,000 831,842
---------
3,912,029
- ------------------------------------------------------------------------------------------------
UTILITIES - 4.6%
- ------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.1%
-------------------------------------------------------------------------------------------
Veba AG 11,650 669,015
- ------------------------------------------------------------------------------------------------
GAS UTILITIES - 1.9%
-------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. 309,600 598,387
-------------------------------------------------------------------------------------------
RWE AG, Preference 17,000 568,097
----------
1,166,484
- ------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.6%
-------------------------------------------------------------------------------------------
DDI Corp. 75 494,960
-------------------------------------------------------------------------------------------
Telefonica de Espana, ADS 21,800 506,176
----------
1,001,136
----------
Total Common Stocks (Cost $52,385,155) 60,718,975
- ------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.0%
- ------------------------------------------------------------------------------------------------
Renong Berhad, 4% Irredeemable Cv. Unsec. Loan
Stocks (Cost $13,291) (1) 33,200 13,934
UNITS
- ------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.1%
- ------------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. Wts., Exp. 7/01 23,000 22,855
-------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. Wts., Exp. 9/97 25,800 14,343
-------------------------------------------------------------------------------------------
Renong Berhad Wts., Exp. 11/00 20,750 10,188
---------
Total Rights, Warrants and Certificates (Cost $19,448) 47,386
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.9%
- ------------------------------------------------------------------------------------------------
Repurchase agreement with State Street Bank and Trust
Co., 4.50%, dated 12/31/96, to be repurchased at
$1,802,451 on 1/2/97, collateralized by U.S. Treasury Bonds,
11.25%, 2/15/15, with a value of $1,841,063 (Cost $1,802,000) $ 1,802,000 1,802,000
-------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $54,219,894) 100.0%
62,582,295
-------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.0 3,166
----------- ----------
NET ASSETS 100.0% $ 62,585,461
----------- ----------
----------- ----------
</TABLE>
1. Non-income producing security.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines established
by the Board of Directors. These securities amount to $332,100 or 0.53% of
the Fund's net assets, at December 31, 1996.
18
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
COUNTRY MARKET VALUE PERCENT
--------------------------------------------------------------------------
Japan $ 14,361,429 23.0%
Great Britain 11,283,352 18.0
Hong Kong 6,966,721 11.1
France 4,841,340 7.7
Germany 3,930,478 6.3
The Netherlands 3,052,803 4.9
Australia 2,989,410 4.8
Sweden 2,266,976 3.6
Switzerland 1,852,823 3.0
United States 1,802,000 2.9
Singapore 1,746,738 2.8
Malaysia 1,255,460 2.0
Italy 1,225,223 2.0
Spain 1,193,508 1.9
Denmark 1,082,336 1.7
New Zealand 561,131 0.9
Luxembourg 456,250 0.7
Mexico 427,700 0.7
Chile 378,200 0.6
Korea, Republic of (South) 332,100 0.5
Ecuador 300,000 0.5
Indonesia 276,317 0.4
------------- ---------
TOTAL $ 62,582,295 100.0%
------------- ---------
------------- ---------
See accompanying Notes to Financial Statements.
19
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 9.3%
- -------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Interest-Only Stripped Mtg.-Backed Security, Trust 1542,
Cl. QC, 9.115%, 10/15/20 (1) $ 500,000 $ 129,844
Series 1843, Cl. VB, 7%, 4/15/03 75,000 75,328
Series 1849, Cl. VA, 6%, 12/15/10 231,498 227,301
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates:
5.50%, 12/1/97 (2) 41,693 41,277
6%, 3/1/09 246,352 239,137
Series 1574, Cl. PD, 5.55%, 3/15/13 125,000 124,296
---------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 227,365 223,093
6.50%, 4/1/26 196,672 187,633
7%, 4/1/00 139,665 140,334
Medium-Term Nts., 6.56%, 11/13/01 125,000 124,534
Series 1994-13, Cl. B, 6.50%, 2/25/09 150,000 143,577
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates:
Series 1993-181, Cl. C, 5.40%, 10/25/02 270,000 267,889
Series 1993-190, Cl. Z, 5.85%, 7/25/08 168,416 165,647
---------------------------------------------------------------------------------------------------------
GE Capital Mortgage Securities, Inc., Series-HE2, Cl. A3,
7.30%, 3/25/12 130,000 131,625
---------------------------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Series 1996-A,
Cl. A4, 5.85%, 7/15/01 125,000 124,258
-----------
Total Mortgage-Backed Obligations (Cost $2,340,098) 2,345,773
- -------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 14.4%
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 7.50%, 11/15/16 1,245,000 1,347,713
---------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.125%, 4/30/98 250,000 247,500
6.50%, 8/15/05 850,000 856,110
6.75%, 6/30/99 1,170,000 1,190,841
-----------
Total U.S. Government Obligations (Cost $3,560,031) 3,642,164
- -------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - 45.7%
- -------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 6.6%
- -------------------------------------------------------------------------------------------------------------
CHEMICALS - 3.1%
---------------------------------------------------------------------------------------------------------
Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 125,000
126,344
---------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co., 8.50% Debs., 2/15/03 140,000
149,588
---------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9.75% Sr. Nts., 2/15/02 (3) 42,000 43,995
---------------------------------------------------------------------------------------------------------
Lyondell Petrochemical Co., 8.25% Nts., 3/15/97 100,000 100,441
---------------------------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts.,
6/1/20 75,000 91,861
---------------------------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05 (4) 100,000
86,750
---------------------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 75,000 89,502
</TABLE>
20
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CHEMICALS (CONTINUED)
---------------------------------------------------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr. Nts., 12/1/04 $ 75,000 $ 83,625
-----------
772,106
- -------------------------------------------------------------------------------------------------------------
CONTAINERS - 0.3%
---------------------------------------------------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr. Nts., 10/1/05 75,000 78,187
- -------------------------------------------------------------------------------------------------------------
METALS/MINING - 0.5%
---------------------------------------------------------------------------------------------------------
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 125,000 135,846
- -------------------------------------------------------------------------------------------------------------
PAPER - 2.7%
---------------------------------------------------------------------------------------------------------
Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 125,000
126,250
---------------------------------------------------------------------------------------------------------
Fort Howard Corp.:
9% Sr. Sub. Nts., 2/1/06 75,000 76,406
9.25% Sr. Nts., 3/15/01 70,000 72,975
---------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs.,
5/15/05 75,000 83,062
---------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 9.85% Credit Sensitive Nts., 6/15/97 250,000
254,386
---------------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 75,000 76,125
-----------
689,204
- -------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 7.1%
- -------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS - 1.8%
---------------------------------------------------------------------------------------------------------
Black & Decker Corp., 6.625% Nts., 11/15/00 125,000 124,976
---------------------------------------------------------------------------------------------------------
Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 250,000 251,875
---------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 75,000 77,104
-----------
453,955
- -------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.8%
---------------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 125,000 125,474
---------------------------------------------------------------------------------------------------------
Van De Kamps, Inc., 12% Sr. Sub. Nts., 9/15/05 75,000 82,875
-----------
208,349
- -------------------------------------------------------------------------------------------------------------
HEALTHCARE - 1.7%
---------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp., 6.875% Nts., 7/15/01 145,000
146,580
---------------------------------------------------------------------------------------------------------
Dade International, Inc., 11.125% Sr. Sub. Nts., 5/1/06 75,000 81,375
---------------------------------------------------------------------------------------------------------
Graphic Controls Corp., 12% Sr. Sub. Nts., Series A,
9/15/05 75,000 83,437
---------------------------------------------------------------------------------------------------------
Paracelsus Healthcare Corp., 10% Sr. Sub. Unsec. Nts.,
8/15/06 50,000 47,125
---------------------------------------------------------------------------------------------------------
Regency Health Services, Inc., 9.875% Gtd. Sr. Sub. Nts.,
10/15/02 75,000 75,937
-----------
434,454
- -------------------------------------------------------------------------------------------------------------
HOTEL/GAMING - 2.3%
---------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 75,000 71,531
---------------------------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts.,
8/15/03 (3) 75,000 74,437
---------------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc., 11% Mtg. Debs.,
9/15/03 75,000 79,687
---------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts.,
Series B, 11/15/02 75,000 99,375
---------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 75,000
79,125
---------------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City Funding,
Inc., 11.25% First Mtg. Nts., 5/1/06 50,000 49,750
---------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 11.75% Mtg. Nts., 11/15/03 75,000
66,937
</TABLE>
21
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HOTEL/GAMING (CONTINUED)
-----------------------------------------------------------------------------------------------------------
Wyndham Hotel Corp., 10.50% Sr. Sub. Nts., 5/15/06 $ 50,000 $
53,250
-----------
574,092
- ---------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL - 0.5%
-----------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 75,000 83,062
-----------------------------------------------------------------------------------------------------------
William Carter Co., 10.375% Sr. Sub. Nts., 12/1/06 (3) 50,000 52,000
-----------
135,062
- ---------------------------------------------------------------------------------------------------------------
ENERGY - 3.3%
- ---------------------------------------------------------------------------------------------------------------
Coastal Corp.:
8.125% Sr. Nts., 9/15/02 75,000 79,492
8.75% Sr. Nts., 5/15/99 50,000 52,437
-----------------------------------------------------------------------------------------------------------
Falcon Drilling Co., Inc., 9.75% Sr. Nts., Series B, 1/15/01 70,000 73,412
-----------------------------------------------------------------------------------------------------------
Falcon Holdings Group LP, 11% Sr. Sub. Nts., 9/15/03 (5) 83,476
71,395
-----------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 75,000
75,841
-----------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.375% Nts., 11/1/03 75,000 76,500
-----------------------------------------------------------------------------------------------------------
NorAm Energy Corp., 9.875% Nts., 4/15/97 250,000 252,749
-----------------------------------------------------------------------------------------------------------
Standard Oil/British Petroleum Co. plc, 9% Debs., 6/1/19 75,000
78,962
-----------------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec.
Debs., 2/1/06 75,000 71,106
-----------
831,894
- ---------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 11.3%
- ---------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 3.5%
-----------------------------------------------------------------------------------------------------------
Barnett Banks, Inc., 8.50% Sub. Exchangeable Nts., 3/1/99 55,000
57,420
-----------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New), 6.625% Sr. Nts., 1/15/98 50,000
50,304
-----------------------------------------------------------------------------------------------------------
Chevy Chase Bank FSB, 9.25% Sub. Debs., 12/1/08 50,000
51,000
-----------------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 75,000 72,614
-----------------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts.,
4/1/98 50,000 51,298
-----------------------------------------------------------------------------------------------------------
First Union Corp., 6.75% Sr. Nts., 1/15/98 50,000 50,400
-----------------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 125,000
140,008
-----------------------------------------------------------------------------------------------------------
Integra Financial Corp., 6.50% Sub. Nts., 4/15/00 125,000 125,039
-----------------------------------------------------------------------------------------------------------
Mellon Capital I, 7.72% Bonds, 12/1/26 100,000 97,270
-----------------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 175,000
175,909
-----------
871,262
- ---------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 6.2%
-----------------------------------------------------------------------------------------------------------
American General Finance Corp., 8.50% Sr. Nts., 8/15/98 55,000
57,033
-----------------------------------------------------------------------------------------------------------
Associates Corp. of North America, 7.40% Medium-Term
Nts., 7/7/99 55,000 56,469
-----------------------------------------------------------------------------------------------------------
Beneficial Corp., 9.125% Debs., 2/15/98 125,000 129,095
-----------------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 60,000 60,310
-----------------------------------------------------------------------------------------------------------
Capital One Funding Corp., 7.25% Nts., 12/1/03 50,000 49,500
-----------------------------------------------------------------------------------------------------------
Chelsea GCA Realty Partner, Inc., 7.75% Gtd. Unsec.
Unsub. Nts., 1/26/01 60,000 60,762
-----------------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 125,000
120,473
-----------------------------------------------------------------------------------------------------------
Countrywide Funding Corp.:
6.05% Gtd. Medium-Term Nts., Series D, 3/1/01 75,000 73,416
6.085% Gtd. Medium-Term Nts., Series B, 7/14/99 55,000
54,664
6.57% Gtd. Medium-Term Nts., Series A, 8/4/97 55,000 55,272
-----------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 6.25% Unsub. Nts., 2/26/98 125,000
125,702
</TABLE>
22
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
-----------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.625% Nts., 2/15/01 $ 250,000 $
241,091
-----------------------------------------------------------------------------------------------------------
Golden West Financial Corp., 8.625% Sub. Nts., 8/30/98 50,000
51,875
-----------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 75,000 76,687
-----------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.50% Nts., 4/1/01 125,000 124,449
-----------------------------------------------------------------------------------------------------------
Norwest Financial, Inc., 6.50% Sr. Nts., 11/15/97 50,000 50,286
-----------------------------------------------------------------------------------------------------------
Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99 50,000
51,686
-----------------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D,
3/1/99 130,000 135,622
-----------
1,574,392
- ---------------------------------------------------------------------------------------------------------------
INSURANCE - 1.6%
-----------------------------------------------------------------------------------------------------------
Cigna Corp., 7.90% Nts., 12/14/98 140,000 144,046
-----------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 135,000 141,271
-----------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., 6.75% Nts.,
4/15/01 125,000 125,669
-----------
410,986
- ---------------------------------------------------------------------------------------------------------------
HOUSING RELATED - 0.6%
- ---------------------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 140,000 149,800
- ---------------------------------------------------------------------------------------------------------------
MANUFACTURING - 1.4%
- ---------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 1.0%
-----------------------------------------------------------------------------------------------------------
Alpine Group, Inc., 12.25% Sr. Nts., 7/15/03 37,000 40,515
-----------------------------------------------------------------------------------------------------------
British Aerospace plc, 8% Debs., 5/27/97 55,000 55,447
-----------------------------------------------------------------------------------------------------------
Digital Equipment Corp., 7% Nts., 11/15/97 165,000 165,012
-----------
260,974
- ---------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.4%
-----------------------------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Nts., 8/1/03 75,000 74,250
-----------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03 35,000 36,269
-----------
110,519
- ---------------------------------------------------------------------------------------------------------------
MEDIA - 5.4%
- ---------------------------------------------------------------------------------------------------------------
BROADCASTING - 1.1%
-----------------------------------------------------------------------------------------------------------
Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05 75,000 76,125
-----------------------------------------------------------------------------------------------------------
New World Communications Group Holding Corp., Zero
Coupon Sr. Disc. Nts., Series B, 11.022%, 6/15/99 (6) 150,000
125,625
-----------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 75,000
76,781
-----------
278,531
- ---------------------------------------------------------------------------------------------------------------
CABLE TELEVISION - 1.6%
-----------------------------------------------------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub. Debs., 10/15/06 75,000 77,063
-----------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs.,
11/15/07 (4) 75,000 53,813
-----------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/11.50% Sr. Deferred
Coupon Nts., Series B, 2/1/06 (4) 100,000 68,500
-----------------------------------------------------------------------------------------------------------
TeleWest plc:
0%/11% Sr. Disc. Debs., 10/1/07 (4) 50,000 35,000
9.625% Sr. Debs., 10/1/06 50,000 51,500
-----------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec.
Disc. Nts.:
Series B, 14%, 11/15/99 (6) 50,000 35,750
11.657%, 11/15/99 (6) 100,000 71,500
-----------
393,126
</TABLE>
23
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED MEDIA - 0.7%
----------------------------------------------------------------------------------------------------------
MDC Communications Corp., 10.50% Sr. Sub. Nts., 12/1/06 $ 50,000 $
51,813
----------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 125,000 126,641
-------------
178,454
- --------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM - 1.7%
----------------------------------------------------------------------------------------------------------
American Skiing Corp., 12% Sr. Sub. Nts., 7/15/06 (2) 50,000 52,875
----------------------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp., 6.625% Sr. Nts., 2/15/98 125,000
125,421
----------------------------------------------------------------------------------------------------------
Marvel III Holdings, Inc., 9.125% Sr. Sec. Nts., Series B,
2/15/98 75,000 11,250
----------------------------------------------------------------------------------------------------------
Stuart Entertainment, Inc., 12.50% Sr. Sub. Nts., 11/15/04 (3) 50,000
51,125
----------------------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A,
3/30/01 190,000 189,337
-------------
430,008
- --------------------------------------------------------------------------------------------------------------
PUBLISHING/PRINTING - 0.3%
----------------------------------------------------------------------------------------------------------
Reed Publishing (USA), Inc., 7.24% Gtd. Medium-Term
Nts., 2/10/97 65,000 65,094
- --------------------------------------------------------------------------------------------------------------
OTHER - 0.3%
- --------------------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Gtd. Sr. Nts., 12/1/06 (1) 70,000
69,038
- --------------------------------------------------------------------------------------------------------------
RETAIL - 3.4%
- --------------------------------------------------------------------------------------------------------------
DEPARTMENT STORES - 2.3%
----------------------------------------------------------------------------------------------------------
Dayton Hudson Co., 9.40% Debs., 2/15/01 140,000 153,198
----------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 50,000
54,306
----------------------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 100,000 99,018
----------------------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 255,000
266,397
-------------
572,919
- --------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 0.2%
----------------------------------------------------------------------------------------------------------
Hines Horticulture, Inc., 11.75% Gtd. Sr. Sub. Nts., Series B,
10/15/05 50,000 53,500
- --------------------------------------------------------------------------------------------------------------
SUPERMARKETS - 0.9%
----------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 125,000
128,024
----------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 0%/10.75% Jr. Sub. Deferred Coupon Nts.,
11/1/03 (4) 150,000 97,875
-------------
225,899
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.9%
- --------------------------------------------------------------------------------------------------------------
RAILROADS - 0.4%
----------------------------------------------------------------------------------------------------------
Union Pacific Corp., 7% Nts., 6/15/00 95,000 96,420
- --------------------------------------------------------------------------------------------------------------
SHIPPING - 0.5%
----------------------------------------------------------------------------------------------------------
Federal Express Corp., 6.25% Nts., 4/15/98 135,000 135,098
- --------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4%
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.6%
----------------------------------------------------------------------------------------------------------
Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 125,000
127,920
----------------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A, 2/1/99 65,000
65,406
----------------------------------------------------------------------------------------------------------
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 200,000
199,914
-------------
393,240
</TABLE>
24
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS - 3.8%
----------------------------------------------------------------------------------------------------------
American Communications Services, Inc., 0%/13% Sr. Disc. Nts.,
11/1/05 (4) 50,000 $ 29,750
----------------------------------------------------------------------------------------------------------
Arch Communications Group, Inc., 0%/10.875% Sr. Disc. Nts.,
3/15/08 (4) 100,000 57,625
----------------------------------------------------------------------------------------------------------
Brooks Fiber Properties, Inc., 0%/11.875% Sr. Disc. Nts.,
11/1/06 (3)(4) 75,000 48,188
----------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 10.625% Sr. Sub. Nts.,
6/15/02 150,000 160,863
----------------------------------------------------------------------------------------------------------
GTE Corp., 8.85% Debs., 3/1/98 55,000 56,663
----------------------------------------------------------------------------------------------------------
MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 125,000
127,338
----------------------------------------------------------------------------------------------------------
Metrocall, Inc., 10.375% Sr. Sub. Nts., 10/1/07 75,000 64,125
----------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc., 0%/9.375% Sr. Disc. Nts.,
1/15/04 (4) 100,000 87,500
----------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.625% Sr. Nts., 8/15/06 (3) 50,000 52,250
----------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts.,
10/1/03 (4) 100,000 86,000
----------------------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 11% Sr.
Nts., 8/15/06 50,000 54,375
----------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc.:
0%/11.125% Sr. Disc. Nts., 7/1/07 (4) 50,000 34,500
9.875% Sr. Nts., 7/1/06 50,000 53,750
----------------------------------------------------------------------------------------------------------
Western Wireless Corp., 10.50% Sr. Sub. Nts., 2/1/07 (3) 50,000
52,438
-------------
965,365
-------------
Total Corporate Bonds and Notes (Cost $11,505,462) 11,547,774
SHARES
- --------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 21.7%
- --------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 1.6%
- --------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.9%
----------------------------------------------------------------------------------------------------------
Dexter Corp. 3,500 111,562
----------------------------------------------------------------------------------------------------------
IMC Global, Inc. 2,834 110,880
----------------------------------------------------------------------------------------------------------
Millennium Chemicals, Inc. (7) 478 8,484
-------------
230,926
- --------------------------------------------------------------------------------------------------------------
STEEL - 0.7%
----------------------------------------------------------------------------------------------------------
Carpenter Technology Corp. 2,800 102,550
----------------------------------------------------------------------------------------------------------
UNR Industries, Inc. 12,000 72,000
-------------
174,550
- --------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 1.5%
- --------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.5%
----------------------------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 2,600 104,000
----------------------------------------------------------------------------------------------------------
Imperial Tobacco Group plc, ADR (7) 1,675 21,613
-------------
125,613
- --------------------------------------------------------------------------------------------------------------
HEALTHCARE - 0.8%
----------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,000 108,750
</TABLE>
25
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (CONTINUED)
----------------------------------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 3,100 $ 98,425
---------
207,175
- --------------------------------------------------------------------------------------------------------------
RESTAURANTS - 0.2%
----------------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 6,300 58,275
- --------------------------------------------------------------------------------------------------------------
ENERGY - 2.6%
- --------------------------------------------------------------------------------------------------------------
Amoco Corp. 1,200 96,600
----------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 1,100 145,750
----------------------------------------------------------------------------------------------------------
Chevron Corp. 2,200 143,000
----------------------------------------------------------------------------------------------------------
Exxon Corp. 1,400 137,200
----------------------------------------------------------------------------------------------------------
Mobil Corp. 1,100 134,475
---------
657,025
- --------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.8%
- --------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 2.3%
----------------------------------------------------------------------------------------------------------
Bank of Boston Corp. 2,300 147,775
----------------------------------------------------------------------------------------------------------
BankAmerica Corp. 1,700 169,575
----------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 700 62,475
----------------------------------------------------------------------------------------------------------
NationsBank Corp. 700 68,425
----------------------------------------------------------------------------------------------------------
PNC Bank Corp. 3,700 139,212
---------
587,462
- --------------------------------------------------------------------------------------------------------------
INSURANCE - 0.5%
----------------------------------------------------------------------------------------------------------
Hartford Steam Boiler Inspection & Insurance Co. 2,500 115,937
- --------------------------------------------------------------------------------------------------------------
HOUSING RELATED - 2.1%
- --------------------------------------------------------------------------------------------------------------
Camden Property Trust 4,300 123,087
----------------------------------------------------------------------------------------------------------
Capstone Capital Corp. 4,900 109,638
----------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 1,600 84,400
----------------------------------------------------------------------------------------------------------
Health & Retirement Property Trust 5,700 110,438
----------------------------------------------------------------------------------------------------------
Meditrust Corp. 2,800 112,000
---------
539,563
- --------------------------------------------------------------------------------------------------------------
MANUFACTURING - 2.9%
- --------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 2.3%
----------------------------------------------------------------------------------------------------------
General Dynamics Corp. 2,500 176,250
----------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 2,800 113,400
----------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 1,100 100,650
----------------------------------------------------------------------------------------------------------
Rockwell International Corp. 1,700 103,488
----------------------------------------------------------------------------------------------------------
TRW, Inc. 1,800 89,100
---------
582,888
- --------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.6%
----------------------------------------------------------------------------------------------------------
PACCAR, Inc. 2,100 142,800
- --------------------------------------------------------------------------------------------------------------
OTHER - 0.2%
- --------------------------------------------------------------------------------------------------------------
Hanson plc, ADR 6,700 45,225
- --------------------------------------------------------------------------------------------------------------
RETAIL - 0.8%
- --------------------------------------------------------------------------------------------------------------
Brown Group, Inc. 5,700 104,738
----------------------------------------------------------------------------------------------------------
New England Business Service, Inc. 4,200 90,300
---------
195,038
</TABLE>
26
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITIES - 7.2%
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 5.8%
----------------------------------------------------------------------------------------------------------
American Electric Power Co., Inc. 2,400 $ 98,700
----------------------------------------------------------------------------------------------------------
El Paso Natural Gas Co. 3,400 171,700
----------------------------------------------------------------------------------------------------------
Entergy Corp. 4,200 116,550
----------------------------------------------------------------------------------------------------------
FPL Group, Inc. 3,100 142,600
----------------------------------------------------------------------------------------------------------
Illinova Corp. 3,400 93,500
----------------------------------------------------------------------------------------------------------
Kansas City Power & Light Co. 4,500 128,250
----------------------------------------------------------------------------------------------------------
National Fuel Gas Co. 3,300 136,125
----------------------------------------------------------------------------------------------------------
PanEnergy Corp. 5,600 252,000
----------------------------------------------------------------------------------------------------------
Questar Corp. 3,900 143,325
----------------------------------------------------------------------------------------------------------
Texas Utilities Co. 2,000 81,500
----------------------------------------------------------------------------------------------------------
Western Resources, Inc. 3,500 108,063
---------
1,472,313
- --------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.4%
----------------------------------------------------------------------------------------------------------
Ameritech Corp. 2,000 121,250
----------------------------------------------------------------------------------------------------------
GTE Corp. 2,500 113,750
----------------------------------------------------------------------------------------------------------
NYNEX Corp. 2,300 110,688
---------
345,688
---------
Total Common Stocks (Cost $4,629,600) 5,480,478
- --------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.8%
- --------------------------------------------------------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series A, Non-vtg. 1,100 147,125
----------------------------------------------------------------------------------------------------------
K-III Communications Corp., 10% Exchangeable Preferred
Stock, Series D (2) 500 49,125
---------
Total Preferred Stocks (Cost $155,325) 196,250
UNITS
- --------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- --------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 (Cost $0) 75 --
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 6.6%
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with State Street Bank and Trust
Co., 4.50%, dated 12/31/96, to be repurchased at
$1,678,420 on 1/2/97, collateralized by U.S. Treasury
Bonds, 7.50%-8.875%, 11/15/16-2/15/19, with a value of
$1,541,543 and U.S. Treasury Nts., 6.50%, 5/15/97, with a
value of $197,372 (Cost $1,678,000) $ 1,678,000 1,678,000
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $23,868,516) 98.5%
24,890,439
----------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5
383,660
-------------- -------------
NET ASSETS 100.0% $ 25,274,099
-------------- -------------
-------------- -------------
</TABLE>
27
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
1. Interest-Only Strips represent the right to receive the monthly
interest payments on an underlyingpool of mortgage loans. These securities
typically decline in price as interest rates decline. Most other fixed
income securities increase in price when interest rates decline. The
principal amount of the underlying pool represents the notional amount on
which current interest is calculated. The price of these securities is
typically more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs). Interest
rates disclosed represent current yields based upon the current cost basis
and estimated timing and amount of future cash flows.
2. Identifies issues considered to be illiquid. These securities amount
to $212,315 or 0.84% of the Fund's net assets at December 31, 1996.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines established
by the Board of Directors. These securities amount to $374,433 or 1.48% of
the Fund's net assets, at December 31, 1996.
4. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
5. Interest or dividend is paid in kind.
6. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
7. Non-income producing security.
See accompanying Notes to Financial Statements.
28
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 4.0%
Federal Home Loan Mortgage Corp.:
Series 1843, Cl. VB, 7%, 4/15/03 $ 50,000 $ 50,218
Series 1849, Cl. VA, 6%, 12/15/10 157,418 154,565
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates:
5.50%, 6/1/98 (1) 17,019 16,850
6%, 3/1/09 192,603 186,962
Series 1574, Cl. PD, 5.55%, 3/15/13 100,000 99,437
Interest-Only Stripped Mtg.-Backed Security, Trust 1542:
Cl. QC, 9.115%, 10/15/20 (2) 500,000 129,844
Cl. QC, 9.115%, 10/15/20 (2) 400,000 103,875
---------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 162,403 159,352
6.50%, 4/1/26 147,504 140,725
7%, 4/1/00 186,220 187,112
Medium-Term Nts., 6.56%, 11/13/01 225,000 224,161
Series 1994-13, Cl. B, 6.50%, 2/25/09 100,000 95,718
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates:
Series 1993-181, Cl. C, 5.40%, 10/25/02 200,000 198,436
Series 1993-190, Cl. Z, 5.85%, 7/25/08 120,242 118,265
---------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Securities, Inc., Series-HE2, Cl. A3,
7.30%, 3/25/12 100,000 101,250
---------------------------------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Series 1996-A,
Cl. A4, 5.85%, 7/15/01 90,000 89,466
----------
Total Mortgage-Backed Obligations (Cost $2,053,755) 2,056,236
- ------------------------------------------------------------------------------------------------------------------
- -
- ------------------------------------------------------------------------------------------------------------------
- -
U.S. GOVERNMENT OBLIGATIONS - 6.2%
- ------------------------------------------------------------------------------------------------------------------
- -
U.S. Treasury Bonds, 7.50%, 11/15/16 1,055,000
1,142,038
---------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.125%, 4/30/98 550,000 544,501
6.50%, 8/15/05 550,000 553,953
6.75%, 6/30/99 695,000 707,380
7.25%, 8/15/04 195,000 205,360
----------
Total U.S. Government Obligations (Cost $3,090,811)
3,153,232
- ------------------------------------------------------------------------------------------------------------------
- -
- ------------------------------------------------------------------------------------------------------------------
- -
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 24.1%
- ------------------------------------------------------------------------------------------------------------------
- -
BASIC MATERIALS - 3.5%
- ------------------------------------------------------------------------------------------------------------------
- -
CHEMICALS - 1.6%
---------------------------------------------------------------------------------------------------------------
Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 85,000
85,914
---------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co., 8.50% Debs., 2/15/03 100,000
106,848
---------------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9.75% Sr. Nts., 2/15/02 (3) 64,000 67,040
---------------------------------------------------------------------------------------------------------------
Lyondell Petrochemical Co., 8.25% Nts., 3/15/97 70,000
70,309
- ------------------------------------------------------------------------------------------------------------------
- -
Morton International, Inc., 9.25% Credit Sensitive Nts.,
6/1/20 50,000 61,240
</TABLE>
29
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
CHEMICALS (CONTINUED)
---------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05 (4) $ 175,000 $
151,812
---------------------------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 50,000 59,668
---------------------------------------------------------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr. Nts., 12/1/04 125,000
139,375
---------------------------------------------------------------------------------------------------------------
Sterling Chemical Holdings, Inc., 0%/13.50% Sr. Disc. Nts.,
8/15/08 (4) 150,000 88,500
----------
830,706
- ------------------------------------------------------------------------------------------------------------------
- -
METALS - 0.5%
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 100,000
108,677
---------------------------------------------------------------------------------------------------------------
WCI Steel, Inc., 10% Sr. Nts., 12/1/04 (3) 125,000 128,125
----------
236,802
- ------------------------------------------------------------------------------------------------------------------
- -
PAPER - 1.4%
---------------------------------------------------------------------------------------------------------------
Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 85,000
85,850
---------------------------------------------------------------------------------------------------------------
Fort Howard Corp.:
9% Sr. Sub. Nts., 2/1/06 125,000 127,344
9.25% Sr. Nts., 3/15/01 50,000 52,125
---------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs.,
5/15/05 125,000 138,437
---------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 9.85% Credit Sensitive Nts.,
6/15/97 170,000 172,983
---------------------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 125,000
126,875
----------
703,614
- ------------------------------------------------------------------------------------------------------------------
- -
CONSUMER CYCLICALS - 7.7%
- ------------------------------------------------------------------------------------------------------------------
- -
AUTOS & HOUSING - 0.2%
---------------------------------------------------------------------------------------------------------------
Black & Decker Corp., 6.625% Nts., 11/15/00 85,000
84,984
- ------------------------------------------------------------------------------------------------------------------
- -
LEISURE & ENTERTAINMENT - 3.2%
---------------------------------------------------------------------------------------------------------------
American Skiing Corp., 12% Sr. Sub. Nts., 7/15/06 (1) 100,000
105,750
---------------------------------------------------------------------------------------------------------------
Argosy Gaming Co., 13.25% First Mtg. Nts., 6/1/04 50,000
46,625
---------------------------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp., 6.625% Sr. Nts.,
2/15/98 85,000 85,286
---------------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 125,000
119,219
---------------------------------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts.,
8/15/03 (3) 200,000 198,500
---------------------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc., 11% Mtg. Debs.,
9/15/03 125,000 132,812
---------------------------------------------------------------------------------------------------------------
Marvel III Holdings, Inc., 9.125% Sr. Sec. Nts., Series B,
2/15/98 125,000 18,750
---------------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts.,
Series B, 11/15/02 125,000 165,625
---------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 125,000
131,875
---------------------------------------------------------------------------------------------------------------
Showboat, Inc., 9.25% First Mtg. Bonds, 5/1/08 100,000
98,500
---------------------------------------------------------------------------------------------------------------
Stuart Entertainment, Inc., 12.50% Sr. Sub. Nts., 11/15/04 (3) 100,000
102,250
---------------------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City
Funding, Inc., 11.25% First Mtg. Nts., 5/1/06 75,000 74,625
---------------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 11.75% Mtg. Nts., 11/15/03 125,000
111,562
---------------------------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A,
3/30/01 130,000 129,546
---------------------------------------------------------------------------------------------------------------
Wyndham Hotel Corp., 10.50% Sr. Sub. Nts., 5/15/06 100,000
106,500
----------
1,627,425
</TABLE>
30
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDIA - 2.7%
--------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 9.875% Sr. Sub. Nts., 5/15/06 $ 50,000 $
51,562
--------------------------------------------------------------------------------------------------------------
Century Communications Corp., 9.75% Sr. Nts., 2/15/02 100,000
103,500
--------------------------------------------------------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub. Debs., 10/15/06 125,000
128,437
--------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs.,
11/15/07 (4) 125,000 89,687
--------------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec.
Disc. Nts., 3/15/04 (4) 100,000 77,000
--------------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/11.50% Sr. Deferred
Coupon Nts., Series B, 2/1/06 (4) 200,000 137,000
--------------------------------------------------------------------------------------------------------------
MDC Communications Corp., 10.50% Sr. Sub. Nts.,
12/1/06 125,000 129,531
--------------------------------------------------------------------------------------------------------------
New World Communications Group Holding Corp., Zero
Coupon Sr. Disc. Nts., Series B, 11.022%, 6/15/99 (5) 250,000
209,375
--------------------------------------------------------------------------------------------------------------
Reed Publishing (USA), Inc., 7.24% Gtd. Medium-Term
Nts., 2/10/97 45,000 45,065
--------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 125,000
127,969
--------------------------------------------------------------------------------------------------------------
TeleWest plc:
0%/11% Sr. Disc. Debs., 10/1/07 (4) 75,000 52,500
9.625% Sr. Debs., 10/1/06 75,000 77,250
--------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 85,000 86,116
--------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec.
Disc. Nts., 12.915%, 11/15/99 (5) 100,000 71,500
-------------
1,386,492
- ------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 1.3%
--------------------------------------------------------------------------------------------------------------
Dayton Hudson Co., 9.40% Debs., 2/15/01 100,000
109,427
--------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 35,000
38,014
--------------------------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 90,000 89,116
--------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 175,000
182,821
--------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 125,000
138,437
--------------------------------------------------------------------------------------------------------------
William Carter Co., 10.375% Sr. Sub. Nts., 12/1/06 (3) 125,000
130,000
---------
687,815
- ------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 0.3%
--------------------------------------------------------------------------------------------------------------
Hines Horticulture, Inc., 11.75% Gtd. Sr. Sub. Nts., Series B,
10/15/05 125,000 133,750
- ------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 2.8%
- ------------------------------------------------------------------------------------------------------------------
FOOD - 1.2%
--------------------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 95,000 95,360
--------------------------------------------------------------------------------------------------------------
Fresh Del Monte Produce NV, 10% Sr. Nts., Series B,
5/1/03 125,000 119,375
--------------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 85,000
87,056
--------------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 0%/10.75% Jr. Sub. Deferred Coupon
Nts., 11/1/03 (4) 250,000 163,125
--------------------------------------------------------------------------------------------------------------
Van De Kamps, Inc., 12% Sr. Sub. Nts., 9/15/05 125,000
138,125
-------------
603,041
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.2%
--------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp., 6.875% Nts., 7/15/01 100,000
101,089
--------------------------------------------------------------------------------------------------------------
Dade International, Inc., 11.125% Sr. Sub. Nts., 5/1/06 125,000
135,625
</TABLE>
31
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES (CONTINUED)
--------------------------------------------------------------------------------------------------------------
Graphic Controls Corp., 12% Sr. Sub. Nts., Series A,
9/15/05 $ 125,000 $ 139,062
--------------------------------------------------------------------------------------------------------------
Paracelsus Healthcare Corp., 10% Sr. Sub. Unsec. Nts.,
8/15/06 100,000 94,250
--------------------------------------------------------------------------------------------------------------
Regency Health Services, Inc., 9.875% Gtd. Sr. Sub. Nts.,
10/15/02 125,000 126,562
-------------
596,588
- ------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.4%
Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 170,000
171,275
--------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 50,000
51,403
-------------
222,678
- ------------------------------------------------------------------------------------------------------------------
ENERGY - 1.4%
- ------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 1.3%
Coastal Corp.:
8.125% Sr. Nts., 9/15/02 50,000 52,995
8.75% Sr. Nts., 5/15/99 35,000 36,706
--------------------------------------------------------------------------------------------------------------
Falcon Drilling Co., Inc., 9.75% Sr. Nts., Series B, 1/15/01 55,000
57,681
--------------------------------------------------------------------------------------------------------------
Falcon Holdings Group LP, 11% Sr. Sub. Nts., 9/15/03 (6) 139,128
118,993
--------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 50,000
50,561
--------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.375% Nts., 11/1/03 125,000
127,500
NorAm Energy Corp., 9.875% Nts., 4/15/97 170,000
171,870
--------------------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec.
Debs., 2/1/06 50,000 47,404
-------------
663,710
- ------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 0.1%
Standard Oil/British Petroleum Co. plc, 9% Debs., 6/1/19 50,000
52,641
--------------------------------------------------------------------------------------------------------------
FINANCIAL - 4.2%
BANKS - 1.3%
--------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New), 6.625% Sr. Nts., 1/15/98 35,000
35,213
--------------------------------------------------------------------------------------------------------------
Chevy Chase Bank FSB, 9.25% Sub. Debs., 12/1/08 125,000
127,500
--------------------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 50,000 48,410
--------------------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts.,
4/1/98 35,000 35,909
--------------------------------------------------------------------------------------------------------------
First Union Corp., 6.75% Sr. Nts., 1/15/98 35,000 35,280
--------------------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 85,000
95,205
--------------------------------------------------------------------------------------------------------------
Integra Financial Corp., 6.50% Sub. Nts., 4/15/00 85,000
85,027
--------------------------------------------------------------------------------------------------------------
Mellon Capital I, 7.72% Bonds, 12/1/26 75,000 72,952
--------------------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 115,000
115,598
-------------
651,094
- ------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.3%
American General Finance Corp., 8.50% Sr. Nts., 8/15/98 40,000
41,478
--------------------------------------------------------------------------------------------------------------
Associates Corp. of North America, 7.40% Medium-Term
Nts., 7/7/99 40,000 41,068
--------------------------------------------------------------------------------------------------------------
Beneficial Corp., 9.125% Debs., 2/15/98 85,000 87,785
--------------------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 45,000
45,232
--------------------------------------------------------------------------------------------------------------
Capital One Funding Corp., 7.25% Nts., 12/1/03 40,000
39,600
--------------------------------------------------------------------------------------------------------------
Chelsea GCA Realty Partner, Inc., 7.75% Gtd. Unsec.
Unsub. Nts., 1/26/01 40,000 40,508
</TABLE>
32
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
--------------------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 $ 85,000 $
81,922
--------------------------------------------------------------------------------------------------------------
Countrywide Funding Corp.:
6.05% Gtd. Medium-Term Nts., Series D, 3/1/01 50,000
48,944
6.085% Gtd. Medium-Term Nts., Series B, 7/14/99 40,000
39,756
6.57% Gtd. Medium-Term Nts., Series A, 8/4/97 40,000
40,198
--------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 6.25% Unsub. Nts., 2/26/98 85,000
85,478
--------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.625% Nts., 2/15/01 175,000
168,764
--------------------------------------------------------------------------------------------------------------
Golden West Financial Corp., 8.625% Sub. Nts., 8/30/98 35,000
36,313
--------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 125,000
127,813
--------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.50% Nts., 4/1/01 85,000 84,625
--------------------------------------------------------------------------------------------------------------
Norwest Financial, Inc., 6.50% Sr. Nts., 11/15/97 35,000
35,200
--------------------------------------------------------------------------------------------------------------
Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99 35,000
36,180
--------------------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D,
3/1/99 100,000 104,325
---------
1,185,189
- ------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.6%
--------------------------------------------------------------------------------------------------------------
Cigna Corp., 7.90% Nts., 12/14/98 100,000 102,890
--------------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 110,000 115,110
--------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., 6.75% Nts.,
4/15/01 85,000 85,455
---------
303,455
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 1.2%
--------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.5%
--------------------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 100,000
107,000
--------------------------------------------------------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr. Nts., 10/1/05 125,000
130,313
---------
237,313
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.1%
--------------------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Gtd. Sr. Nts., 12/1/06 (1) 70,000
69,038
- ------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.3%
--------------------------------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Nts., 8/1/03 125,000
123,750
--------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03 25,000
25,906
---------
149,656
- ------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.3%
--------------------------------------------------------------------------------------------------------------
Federal Express Corp., 6.25% Nts., 4/15/98 90,000 90,065
--------------------------------------------------------------------------------------------------------------
Union Pacific Corp., 7% Nts., 6/15/00 85,000 86,270
---------
176,335
- ------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 2.6%
- ------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.1%
--------------------------------------------------------------------------------------------------------------
British Aerospace plc, 8% Debs., 5/27/97 40,000 40,325
- ------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 0.2%
--------------------------------------------------------------------------------------------------------------
Digital Equipment Corp., 7% Nts., 11/15/97 115,000
115,008
- ------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 0.1%
--------------------------------------------------------------------------------------------------------------
Alpine Group, Inc., 12.25% Sr. Nts., 7/15/03 62,000 67,890
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 2.2%
--------------------------------------------------------------------------------------------------------------
American Communications Services, Inc., 0%/13% Sr. Disc. Nts.,
11/1/05 (4) 100,000 59,500
--------------------------------------------------------------------------------------------------------------
Arch Communications Group, Inc., 0%/10.875% Sr. Disc.
Nts., 3/15/08 (4) 150,000 86,438
</TABLE>
33
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY (CONTINUED)
--------------------------------------------------------------------------------------------------------------
Brooks Fiber Properties, Inc., 0%/11.875% Sr. Disc. Nts.,
11/1/06 (3)(4) $ 125,000 $ 80,313
--------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 10.625% Sr. Sub. Nts.,
6/15/02 100,000 107,242
--------------------------------------------------------------------------------------------------------------
MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 85,000
86,590
--------------------------------------------------------------------------------------------------------------
Metrocall, Inc., 10.375% Sr. Sub. Nts., 10/1/07 125,000
106,875
--------------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc., 0%/9.375% Sr. Disc. Nts.,
1/15/04 (4) 175,000 153,125
--------------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.625% Sr. Nts., 8/15/06 (3) 125,000
130,625
--------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts.,
10/1/03 (4) 175,000 150,500
--------------------------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 11% Sr.
Nts., 8/15/06 100,000 108,750
--------------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc.:
0%/11.125% Sr. Disc. Nts., 7/1/07 (4) 50,000 34,500
9.875% Sr. Nts., 7/1/06 50,000 53,750
---------
1,158,208
- ------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.7%
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.2%
--------------------------------------------------------------------------------------------------------------
Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 85,000
86,985
--------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A,
2/1/99 40,000 40,250
---------
127,235
--------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.3%
--------------------------------------------------------------------------------------------------------------
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 170,000
169,927
- ------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.2%
--------------------------------------------------------------------------------------------------------------
GTE Corp., 8.85% Debs., 3/1/98 40,000 41,209
--------------------------------------------------------------------------------------------------------------
Western Wireless Corp., 10.50% Sr. Sub. Nts., 2/1/07 (3) 50,000
52,438
---------
93,647
---------
Total Non-Convertible Corporate Bonds and Notes (Cost $12,238,856)
12,374,566
- ------------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES - 0.1%
- ------------------------------------------------------------------------------------------------------------------
Barnett Banks, Inc., 8.50% Sub. Exchangeable Nts.,
3/1/99 (Cost $37,251) 35,000 36,540
SHARES
- ------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 52.7%
- ------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.8%
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.9%
--------------------------------------------------------------------------------------------------------------
Daicel Chemical Industries Ltd. 10,000 46,782
--------------------------------------------------------------------------------------------------------------
Dexter Corp. 3,600 114,750
--------------------------------------------------------------------------------------------------------------
Hoechst AG 1,500 69,398
--------------------------------------------------------------------------------------------------------------
IMC Global, Inc. 2,834 110,880
--------------------------------------------------------------------------------------------------------------
Millennium Chemicals, Inc. (7) 478 8,484
--------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 1,100 93,500
---------
443,794
</TABLE>
34
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
METALS - 0.7%
----------------------------------------------------------------------------------------------------------
Carpenter Technology Corp. 2,800 $ 102,550
----------------------------------------------------------------------------------------------------------
RMI Titanium Co. (7) 2,600 73,125
----------------------------------------------------------------------------------------------------------
RTZ Corp. plc 4,000 64,272
----------------------------------------------------------------------------------------------------------
UNR Industries, Inc. 12,000 72,000
----------------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 7,000 44,089
--------------
356,036
- --------------------------------------------------------------------------------------------------------------
PAPER - 0.2%
----------------------------------------------------------------------------------------------------------
Fort Howard Corp. (7) 4,200 116,287
- --------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 9.6%
- --------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.2%
----------------------------------------------------------------------------------------------------------
Autoliv AB 2,000 87,580
----------------------------------------------------------------------------------------------------------
Bridgestone Corp. 3,000 56,862
----------------------------------------------------------------------------------------------------------
Camden Property Trust 4,300 123,087
----------------------------------------------------------------------------------------------------------
Capstone Capital Corp. 4,900 109,637
----------------------------------------------------------------------------------------------------------
Cheung Kong (Holdings) Ltd. 8,000 71,105
----------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 2,600 137,150
----------------------------------------------------------------------------------------------------------
Groupe SEB SA 400 78,250
----------------------------------------------------------------------------------------------------------
Health & Retirement Property Trust 5,700 110,437
----------------------------------------------------------------------------------------------------------
Honda Motor Co. 3,000 85,552
----------------------------------------------------------------------------------------------------------
Meditrust Corp. 2,800 112,000
----------------------------------------------------------------------------------------------------------
Miller Industries, Inc. (7) 3,300 66,000
----------------------------------------------------------------------------------------------------------
Rinnai Corp. 4,000 80,296
--------------
1,117,956
- --------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 2.5%
----------------------------------------------------------------------------------------------------------
AMR Corp. (7) 1,200 105,750
----------------------------------------------------------------------------------------------------------
Atlas Air, Inc. (7) 4,100 195,775
----------------------------------------------------------------------------------------------------------
CDL Hotels International Ltd. 164,000 93,820
----------------------------------------------------------------------------------------------------------
Dover Downs Entertainment, Inc. (7) 3,400 60,775
----------------------------------------------------------------------------------------------------------
Einstein/Noah Bagel Corp. (7) 2,500 74,375
----------------------------------------------------------------------------------------------------------
EMI Group plc 2,500 59,088
----------------------------------------------------------------------------------------------------------
Galoob Toys, Inc. (7) 500 7,000
----------------------------------------------------------------------------------------------------------
Granada Group plc 5,000 73,916
----------------------------------------------------------------------------------------------------------
Landry's Seafood Restaurants, Inc. (7) 2,600 55,575
----------------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (7) 1,500 58,687
----------------------------------------------------------------------------------------------------------
Papa John's International, Inc. (7) 2,175 73,406
----------------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 6,300 58,275
----------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc. (7) 4,550 139,912
----------------------------------------------------------------------------------------------------------
VideoServer, Inc. (7) 2,500 106,250
----------------------------------------------------------------------------------------------------------
Wyndham Hotel Corp. (7) 4,400 108,350
--------------
1,270,954
- --------------------------------------------------------------------------------------------------------------
MEDIA - 0.9%
----------------------------------------------------------------------------------------------------------
Benpres Holdings Corp., Sponsored GDR (7) 5,000 37,500
----------------------------------------------------------------------------------------------------------
Emmis Broadcasting Corp., Cl. A (7) 2,000 65,500
----------------------------------------------------------------------------------------------------------
Heftel Broadcasting Corp., A Shares (7) 2,000 63,000
----------------------------------------------------------------------------------------------------------
Reed International plc 3,500 65,831
----------------------------------------------------------------------------------------------------------
Reuters Holdings plc 5,000 64,366
----------------------------------------------------------------------------------------------------------
Television Broadcasts Ltd. 21,000 83,891
</TABLE>
35
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDIA (CONTINUED)
----------------------------------------------------------------------------------------------------------
Wolters Kluwer NV (7) 600 $ 79,607
--------------
459,695
- --------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 1.7%
----------------------------------------------------------------------------------------------------------
Dollar Tree Stores, Inc. (7) 2,200 84,150
----------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. (7) 3,300 112,612
----------------------------------------------------------------------------------------------------------
Marks & Spencer plc 8,000 67,424
----------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc. (7) 4,500 113,625
----------------------------------------------------------------------------------------------------------
North Face, Inc. (The) (7) 3,300 63,525
----------------------------------------------------------------------------------------------------------
Price/Costco, Inc. (7) 4,100 103,012
----------------------------------------------------------------------------------------------------------
St. John Knits, Inc. 2,700 117,450
----------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 3,900 113,100
----------------------------------------------------------------------------------------------------------
Zeneca Group plc 4,000 112,715
--------------
887,613
- --------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 2.3%
----------------------------------------------------------------------------------------------------------
adidas AG 600 51,781
----------------------------------------------------------------------------------------------------------
Brown Group, Inc. 6,200 113,925
----------------------------------------------------------------------------------------------------------
CDW Computer Centers, Inc. (7) 2,400 142,350
----------------------------------------------------------------------------------------------------------
Cifra SA de CV, Unsponsored ADR, B Shares (7) 36,000 43,992
----------------------------------------------------------------------------------------------------------
Dickson Concepts International Ltd. 22,000 82,482
----------------------------------------------------------------------------------------------------------
Finish Line, Inc., Cl. A (7) 5,700 120,412
----------------------------------------------------------------------------------------------------------
Jusco Co. 2,000 67,718
----------------------------------------------------------------------------------------------------------
Koninklijke Ahold NV 1,733 108,204
----------------------------------------------------------------------------------------------------------
New England Business Service, Inc. 4,200 90,300
----------------------------------------------------------------------------------------------------------
Next plc 7,000 68,229
----------------------------------------------------------------------------------------------------------
Shimamura Co. Ltd. 2,000 68,579
----------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (7) 3,900 117,000
----------------------------------------------------------------------------------------------------------
U.S. Office Products Co. (7) 3,500 119,437
--------------
1,194,409
- --------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 7.6%
- --------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.7%
----------------------------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 5,400 216,000
----------------------------------------------------------------------------------------------------------
Embotelladora Andina SA, Sponsored ADR 2,450 74,725
----------------------------------------------------------------------------------------------------------
Quilmes Industrial Quinsa SA, Sponsored ADR 7,500 68,437
--------------
359,162
- --------------------------------------------------------------------------------------------------------------
EDUCATION - 0.3%
----------------------------------------------------------------------------------------------------------
ITT Educational Services, Inc. (7) 3,400 78,625
----------------------------------------------------------------------------------------------------------
Learning Tree International, Inc. (7) 2,850 84,075
--------------
162,700
- --------------------------------------------------------------------------------------------------------------
FOOD - 1.2%
----------------------------------------------------------------------------------------------------------
American Stores Co. 2,800 114,450
----------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 4,620 101,640
----------------------------------------------------------------------------------------------------------
Carrefour Supermarche SA 172 111,695
----------------------------------------------------------------------------------------------------------
Danisco AS 1,300 78,896
----------------------------------------------------------------------------------------------------------
Kroger Co. (7) 2,400 111,600
----------------------------------------------------------------------------------------------------------
William Morrison Supermarkets plc 33,000 92,990
--------------
611,271
- --------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 2.1%
----------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 1,500 74,033
</TABLE>
36
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
HEALTHCARE/DRUGS (CONTINUED)
---------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,600 $ 174,000
---------------------------------------------------------------------------------------------------------------
Clintrials Research, Inc. (7) 4,150 94,412
---------------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc. (7) 3,200 152,800
---------------------------------------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 3,200 101,600
---------------------------------------------------------------------------------------------------------------
Jones Medical Industries, Inc. 3,150 115,369
---------------------------------------------------------------------------------------------------------------
Medicis Pharmaceutical Corp., Cl. A (7) 1,700 74,800
---------------------------------------------------------------------------------------------------------------
Novartis AG (7) 100 114,171
---------------------------------------------------------------------------------------------------------------
Schering AG 1,000 84,290
---------------------------------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 5,000 104,678
----------
1,090,153
- ------------------------------------------------------------------------------------------------------------------
- -
HEALTHCARE/SUPPLIES & SERVICES - 2.3%
---------------------------------------------------------------------------------------------------------------
CNS, Inc. (7) 3,200 46,000
---------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 2,250 91,687
---------------------------------------------------------------------------------------------------------------
Compdent Corp. (7) 1,800 63,450
---------------------------------------------------------------------------------------------------------------
Luxottica Group SpA, Sponsored ADR 1,200 62,400
---------------------------------------------------------------------------------------------------------------
National Surgery Centers, Inc. (7) 2,700 102,600
---------------------------------------------------------------------------------------------------------------
OrNda Healthcorp (7) 3,400 99,450
---------------------------------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc. (7) 2,800 103,250
---------------------------------------------------------------------------------------------------------------
Physician Sales & Service, Inc. (7) 4,500 64,688
---------------------------------------------------------------------------------------------------------------
Renal Treatment Centers, Inc. (7) 3,800 96,900
---------------------------------------------------------------------------------------------------------------
Rural/Metro Corp. (7) 3,100 111,600
---------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc 13,296 184,372
---------------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc. (7) 2,600 94,250
---------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. (7) 1,300 44,688
----------
1,165,335
- ------------------------------------------------------------------------------------------------------------------
- -
HOUSEHOLD GOODS - 0.8%
---------------------------------------------------------------------------------------------------------------
Blyth Industries, Inc. (7) 2,800 127,750
---------------------------------------------------------------------------------------------------------------
L'OREAL 250 93,965
---------------------------------------------------------------------------------------------------------------
Premark International, Inc. 4,600 102,350
---------------------------------------------------------------------------------------------------------------
Tupperware Corp. 1,200 64,350
----------
388,415
- ------------------------------------------------------------------------------------------------------------------
- -
TOBACCO - 0.2%
---------------------------------------------------------------------------------------------------------------
Imperial Tobacco Group plc, ADR (7) 1,675 21,613
---------------------------------------------------------------------------------------------------------------
PT Gudang Garam (7) 17,000 73,397
----------
95,010
- ------------------------------------------------------------------------------------------------------------------
- -
ENERGY - 2.4%
---------------------------------------------------------------------------------------------------------------
Amoco Corp. 2,700 217,350
---------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 1,100 145,750
---------------------------------------------------------------------------------------------------------------
Chevron Corp. 4,600 299,000
---------------------------------------------------------------------------------------------------------------
Exxon Corp. 2,600 254,800
---------------------------------------------------------------------------------------------------------------
Mobil Corp. 2,000 244,500
---------------------------------------------------------------------------------------------------------------
Total SA, B Shares 1,000 81,174
----------
1,242,574
- ------------------------------------------------------------------------------------------------------------------
- -
FINANCIAL - 6.2%
- ------------------------------------------------------------------------------------------------------------------
- -
BANKS - 2.8%
---------------------------------------------------------------------------------------------------------------
Banco Popular Espanol SA 400 78,552
---------------------------------------------------------------------------------------------------------------
Bank of Boston Corp. 4,600 295,550
---------------------------------------------------------------------------------------------------------------
BankAmerica Corp. 3,400 339,150
</TABLE>
37
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
BANKS (CONTINUED)
---------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 1,900 $ 169,575
---------------------------------------------------------------------------------------------------------------
HSBC Holdings plc 4,000 85,585
---------------------------------------------------------------------------------------------------------------
Malayan Banking Berhad 6,000 66,521
---------------------------------------------------------------------------------------------------------------
NationsBank Corp. 1,800 175,950
---------------------------------------------------------------------------------------------------------------
PNC Bank Corp. 6,300 237,038
----------
1,447,921
- ------------------------------------------------------------------------------------------------------------------
- -
DIVERSIFIED FINANCIAL - 2.1%
---------------------------------------------------------------------------------------------------------------
Amresco, Inc. (7) 4,200 112,350
---------------------------------------------------------------------------------------------------------------
First Pacific Co. Ltd. 42,000 54,570
---------------------------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. 25,000 56,834
---------------------------------------------------------------------------------------------------------------
ING Groep NV 2,500 89,898
---------------------------------------------------------------------------------------------------------------
Lend Lease Corp. Ltd. 3,500 67,829
---------------------------------------------------------------------------------------------------------------
Nichiei Co. Ltd. 1,000 73,318
---------------------------------------------------------------------------------------------------------------
Oxford Resources Corp., Cl. A (7) 2,900 89,538
---------------------------------------------------------------------------------------------------------------
Perlis Plantations Berhad 17,500 54,395
---------------------------------------------------------------------------------------------------------------
Salomon, Inc. 1,800 84,825
---------------------------------------------------------------------------------------------------------------
Sirrom Capital Corp. 2,700 99,225
---------------------------------------------------------------------------------------------------------------
Southcorp Holdings Ltd. 24,000 76,248
---------------------------------------------------------------------------------------------------------------
Swire Pacific Ltd., Cl. B 46,000 69,580
---------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 2,500 113,438
---------------------------------------------------------------------------------------------------------------
United Industrial Corp. Ltd. 70,000 59,050
----------
1,101,098
- ------------------------------------------------------------------------------------------------------------------
- -
INSURANCE - 1.3%
---------------------------------------------------------------------------------------------------------------
AFLAC, Inc. 2,800 119,700
---------------------------------------------------------------------------------------------------------------
Conseco, Inc. 1,400 89,250
---------------------------------------------------------------------------------------------------------------
General Re Corp. 800 126,200
---------------------------------------------------------------------------------------------------------------
Hartford Steam Boiler Inspection & Insurance Co. 2,500
115,938
---------------------------------------------------------------------------------------------------------------
Sumitomo Marine & Fire Insurance Co. 11,000 68,235
---------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 3,700
130,888
----------
650,211
- ------------------------------------------------------------------------------------------------------------------
- -
INDUSTRIAL - 7.1%
- ------------------------------------------------------------------------------------------------------------------
- -
ELECTRICAL EQUIPMENT - 0.4%
---------------------------------------------------------------------------------------------------------------
ABB AG 65 80,601
---------------------------------------------------------------------------------------------------------------
Johnson Electric Holdings Ltd. 27,000 74,699
---------------------------------------------------------------------------------------------------------------
Mabuchi Motor Co. 800 40,183
----------
195,483
- ------------------------------------------------------------------------------------------------------------------
- -
INDUSTRIAL SERVICES - 2.5%
---------------------------------------------------------------------------------------------------------------
Computer Horizons Corp. (7) 3,100 119,350
---------------------------------------------------------------------------------------------------------------
Corestaff, Inc. (7) 4,650 110,147
---------------------------------------------------------------------------------------------------------------
Corrections Corp. of America (7) 4,400 134,750
---------------------------------------------------------------------------------------------------------------
DT Industries, Inc. 1,900 66,500
---------------------------------------------------------------------------------------------------------------
Hays plc 9,000 86,644
---------------------------------------------------------------------------------------------------------------
Kurita Water Industries Ltd. 3,000 60,481
---------------------------------------------------------------------------------------------------------------
NGK Spark Plug Co. 5,000 54,708
---------------------------------------------------------------------------------------------------------------
NOVA Corp. (7) 2,800 61,950
---------------------------------------------------------------------------------------------------------------
Precision Response Corp. (7) 1,700 59,713
---------------------------------------------------------------------------------------------------------------
SGS Societe Generale de Surveillance Holding SA,
Series B 30 73,507
</TABLE>
38
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
INDUSTRIAL SERVICES (CONTINUED)
---------------------------------------------------------------------------------------------------------------
SITEL Corp. (7) 5,600 $ 79,800
---------------------------------------------------------------------------------------------------------------
Tetra Tech, Inc. (7) 3,875 76,531
---------------------------------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A (7) 3,400 113,050
---------------------------------------------------------------------------------------------------------------
United Waste Systems, Inc. (7) 5,600 192,500
------------
1,289,631
- ------------------------------------------------------------------------------------------------------------------
- -
MANUFACTURING - 3.8%
---------------------------------------------------------------------------------------------------------------
AGCO Corp. 3,200 91,600
---------------------------------------------------------------------------------------------------------------
Bic Corp. 500 74,826
---------------------------------------------------------------------------------------------------------------
Canon Sales Co., Inc. 3,300 73,352
---------------------------------------------------------------------------------------------------------------
Case Corp. 2,000 109,000
---------------------------------------------------------------------------------------------------------------
Chicago Miniature Lamp, Inc. (7) 2,650 109,975
---------------------------------------------------------------------------------------------------------------
Deere & Co. 2,500 101,563
---------------------------------------------------------------------------------------------------------------
General Signal Corp. 2,300 98,325
---------------------------------------------------------------------------------------------------------------
Hanson plc, ADR 6,700 45,225
---------------------------------------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 10,000 78,539
---------------------------------------------------------------------------------------------------------------
Ingersoll-Rand Co. 2,200 97,900
---------------------------------------------------------------------------------------------------------------
Komatsu Ltd. 6,000 49,108
---------------------------------------------------------------------------------------------------------------
Mannesmann AG 195 83,790
---------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 1,995 45,137
---------------------------------------------------------------------------------------------------------------
Mitsubishi Heavy Industries Ltd. 6,000 47,558
---------------------------------------------------------------------------------------------------------------
NSK Ltd. 3,000 18,144
---------------------------------------------------------------------------------------------------------------
PACCAR, Inc. 3,700 251,600
---------------------------------------------------------------------------------------------------------------
Shinmaywa Industries Ltd. 2,000 14,698
---------------------------------------------------------------------------------------------------------------
Sidel SA 1,200 82,405
---------------------------------------------------------------------------------------------------------------
SMC Corp. 100 6,711
---------------------------------------------------------------------------------------------------------------
Textron, Inc. 1,900 179,075
---------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 2,200 116,325
---------------------------------------------------------------------------------------------------------------
U.S. Industries, Inc. (7) 4,400 151,250
------------
1,926,106
- ------------------------------------------------------------------------------------------------------------------
- -
TRANSPORTATION - 0.4%
---------------------------------------------------------------------------------------------------------------
Brambles Industries Ltd. 4,000 77,996
---------------------------------------------------------------------------------------------------------------
Union Pacific Corp. 1,700 102,213
------------
180,209
- ------------------------------------------------------------------------------------------------------------------
- -
TECHNOLOGY - 11.9%
- ------------------------------------------------------------------------------------------------------------------
- -
AEROSPACE/DEFENSE - 2.4%
---------------------------------------------------------------------------------------------------------------
General Dynamics Corp. 4,200 296,100
---------------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 4,700 190,350
---------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 2,400 219,600
---------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 2,200 140,800
---------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 3,500 213,063
---------------------------------------------------------------------------------------------------------------
TRW, Inc. 4,000 198,000
------------
1,257,913
- ------------------------------------------------------------------------------------------------------------------
- -
COMPUTER HARDWARE - 1.4%
---------------------------------------------------------------------------------------------------------------
Canon, Inc. 6,000 132,334
---------------------------------------------------------------------------------------------------------------
Citrix Systems, Inc. (7) 2,400 93,750
---------------------------------------------------------------------------------------------------------------
Dell Computer Corp. (7) 2,000 106,250
---------------------------------------------------------------------------------------------------------------
Gateway 2000, Inc. (7) 1,000 53,563
---------------------------------------------------------------------------------------------------------------
Henry (Jack) & Associates, Inc. 2,000 71,500
</TABLE>
39
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C>
COMPUTER HARDWARE (CONTINUED)
---------------------------------------------------------------------------------------------------------------
Insight Enterprises, Inc. (7) 2,200 $ 61,600
---------------------------------------------------------------------------------------------------------------
Network Appliance, Inc. (7) 1,700 86,488
---------------------------------------------------------------------------------------------------------------
Storage Technology Corp. (New) (7) 2,800 133,350
------------
738,835
- ------------------------------------------------------------------------------------------------------------------
- -
COMPUTER SOFTWARE - 3.8%
---------------------------------------------------------------------------------------------------------------
Applix, Inc. (7) 2,700 59,063
---------------------------------------------------------------------------------------------------------------
Cambridge Technology Partners, Inc. (7) 3,300 110,756
---------------------------------------------------------------------------------------------------------------
EPIC Design Technology, Inc. (7) 2,600 65,000
---------------------------------------------------------------------------------------------------------------
Inso Corp. (7) 1,600 63,600
---------------------------------------------------------------------------------------------------------------
JDA Software Group, Inc. (7) 2,300 65,550
---------------------------------------------------------------------------------------------------------------
Medic Computer Systems, Inc. (7) 1,500 60,469
---------------------------------------------------------------------------------------------------------------
National Data Corp. 1,600 69,600
---------------------------------------------------------------------------------------------------------------
Pegasystems, Inc. (7) 2,400 72,300
---------------------------------------------------------------------------------------------------------------
Project Software & Development, Inc. (7) 3,400 144,075
---------------------------------------------------------------------------------------------------------------
Rational Software Corp. (7) 5,200 205,725
---------------------------------------------------------------------------------------------------------------
Remedy Corp. (7) 2,200 118,250
---------------------------------------------------------------------------------------------------------------
SAP AG, Preference 400 54,973
---------------------------------------------------------------------------------------------------------------
Sapient Corp. (7) 1,400 58,975
---------------------------------------------------------------------------------------------------------------
Scopus Technology, Inc. (7) 2,000 93,000
---------------------------------------------------------------------------------------------------------------
Security Dynamics Technologies, Inc. (7) 2,800 88,200
---------------------------------------------------------------------------------------------------------------
Sykes Enterprises, Inc. (7) 2,400 90,000
---------------------------------------------------------------------------------------------------------------
Technology Solutions Co. (7) 2,000 83,000
---------------------------------------------------------------------------------------------------------------
Verilink Corp. (7) 3,000 99,750
---------------------------------------------------------------------------------------------------------------
Veritas Software Corp. (7) 2,250 111,938
---------------------------------------------------------------------------------------------------------------
Viasoft, Inc. (7) 1,300 61,425
---------------------------------------------------------------------------------------------------------------
Visio Corp. (7) 1,700 84,150
---------------------------------------------------------------------------------------------------------------
Wind River Systems (7) 1,700 80,538
------------
1,940,337
- ------------------------------------------------------------------------------------------------------------------
- -
ELECTRONICS - 2.3%
---------------------------------------------------------------------------------------------------------------
Bowthorpe plc 9,000 69,839
---------------------------------------------------------------------------------------------------------------
Electrocomponents plc 13,000 102,660
---------------------------------------------------------------------------------------------------------------
Getronics NV 2,400 65,073
---------------------------------------------------------------------------------------------------------------
Input/Output, Inc. (7) 1,700 31,450
---------------------------------------------------------------------------------------------------------------
Intel Corp. 1,000 130,938
---------------------------------------------------------------------------------------------------------------
Keyence Corp. 600 73,921
---------------------------------------------------------------------------------------------------------------
Kyocera Corp. 1,000 62,204
---------------------------------------------------------------------------------------------------------------
Matsushita Electric Industrial Co. 4,000 65,133
---------------------------------------------------------------------------------------------------------------
Matsushita Electric Works Ltd. 5,000 42,948
---------------------------------------------------------------------------------------------------------------
Nitto Denko Corp. 4,000 58,585
---------------------------------------------------------------------------------------------------------------
Samsung Electronics Co., Sponsored GDR (3) 1,950
35,978
---------------------------------------------------------------------------------------------------------------
Sony Corp. 1,400 91,548
---------------------------------------------------------------------------------------------------------------
Supertex, Inc. (7) 2,400 31,500
---------------------------------------------------------------------------------------------------------------
TDK Corp. 1,000 65,047
---------------------------------------------------------------------------------------------------------------
Vitesse Semiconductor Corp. (7) 2,600 118,300
---------------------------------------------------------------------------------------------------------------
Waters Corp. (7) 4,700 142,763
------------
1,187,887
- ------------------------------------------------------------------------------------------------------------------
- -
TELECOMMUNICATIONS-TECHNOLOGY - 2.0%
---------------------------------------------------------------------------------------------------------------
Allen Group, Inc. (7) 3,200 71,200
</TABLE>
40
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY (CONTINUED)
--------------------------------------------------------------------------------------------------------------
Aspect Telecommunications Corp. (7) 2,800 $ 177,800
--------------------------------------------------------------------------------------------------------------
British Sky Broadcasting Group plc 8,500 76,006
--------------------------------------------------------------------------------------------------------------
Cable Design Technologies Corp. (7) 2,450 76,256
--------------------------------------------------------------------------------------------------------------
Comverse Technology, Inc. (7) 3,500 132,344
--------------------------------------------------------------------------------------------------------------
DSP Communications, Inc. (7) 6,900 133,688
--------------------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 3,520 106,260
--------------------------------------------------------------------------------------------------------------
Premisys Communications, Inc. (7) 1,300 43,875
--------------------------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd. 15,000 76,518
--------------------------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 24,000 60,672
-------------------------------------------------------------------------------------------------------------
Vodafone Group plc 21,000 88,673
---------
1,043,292
- ------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.1%
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.5%
--------------------------------------------------------------------------------------------------------------
American Electric Power Co., Inc. 3,700 152,163
--------------------------------------------------------------------------------------------------------------
CalEnergy, Inc. (7) 2,100 70,613
--------------------------------------------------------------------------------------------------------------
Entergy Corp. 7,100 197,025
--------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 4,900 225,400
--------------------------------------------------------------------------------------------------------------
Illinova Corp. 3,400 93,500
--------------------------------------------------------------------------------------------------------------
Kansas City Power & Light Co. 4,500 128,250
--------------------------------------------------------------------------------------------------------------
Korea Electric Power Corp. 2,300 66,919
--------------------------------------------------------------------------------------------------------------
Texas Utilities Co. 3,300 134,475
--------------------------------------------------------------------------------------------------------------
Veba AG 2,000 114,852
--------------------------------------------------------------------------------------------------------------
Western Resources, Inc. 3,500 108,063
---------
1,291,260
- ------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 2.5%
--------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc. 3,300 209,963
--------------------------------------------------------------------------------------------------------------
El Paso Natural Gas Co. 3,400 171,700
--------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. 32,400 62,622
--------------------------------------------------------------------------------------------------------------
National Fuel Gas Co. 3,500 144,375
--------------------------------------------------------------------------------------------------------------
PanEnergy Corp. 9,800 441,000
--------------------------------------------------------------------------------------------------------------
Questar Corp. 5,600 205,800
--------------------------------------------------------------------------------------------------------------
RWE AG, Preference 1,850 61,822
---------
1,297,282
- ------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.1%
--------------------------------------------------------------------------------------------------------------
Ameritech Corp. 2,000 121,250
--------------------------------------------------------------------------------------------------------------
DDI Corp. 7 46,196
--------------------------------------------------------------------------------------------------------------
GTE Corp. 4,700 213,850
--------------------------------------------------------------------------------------------------------------
NYNEX Corp. 2,300 110,688
--------------------------------------------------------------------------------------------------------------
Telefonica de Espana, ADS 3,000 69,657
---------
561,641
---------
Total Common Stocks (Cost $22,276,651) 27,070,470
- ------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.5%
- ------------------------------------------------------------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series A, Non-vtg. 1,100
147,125
--------------------------------------------------------------------------------------------------------------
K-III Communications Corp., 10% Exchangeable Preferred
Stock, Series D (1) 1,000 98,250
</TABLE>
41
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------
Renong Berhad, 4% Irredeemable Cv. Unsec. Loan Stocks (7) 4,400
$ 1,847
--------
Total Preferred Stocks (Cost $207,075) 247,222
UNITS
- ------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- ------------------------------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. Wts., Exp. 7/01 2,500
2,484
--------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. Wts., Exp. 9/97 2,700
1,501
--------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 125 --
--------------------------------------------------------------------------------------------------------------
Renong Berhad Wts., Exp. 11/00 2,750 1,350
-------
Total Rights, Warrants and Certificates (Cost $2,246) 5,335
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 12.1%
- ------------------------------------------------------------------------------------------------------------------
Repurchase agreement with State Street Bank and
Trust Co., 4.50%, dated 12/31/96, to be repurchased
at $6,245,561 on 1/2/97, collateralized by U.S. Treasury
Bonds, 7.50%-11.25%, 2/15/15-11/15/16, with a value
of $4,123,000 and U.S. Treasury Nts., 5%-6.125%,
1/31/99-2/28/01, with a value of $2,328,769
(Cost $6,244,000) $ 6,244,000 6,244,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $46,150,645)
99.7% 51,187,601
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.3
148,722
------------ -------------
NET ASSETS 100.0% $ 51,336,323
------------ -------------
------------ -------------
</TABLE>
1. Identifies issues considered to be illiquid. These securities amount
to $289,888 or 0.56% of the Fund's net assets, at December 31, 1996.
2. Interest-Only Strips represent the right to receive the monthly
interest payments on an underlying pool of mortgage loans. These
securities typically decline in price as interest rates decline. Most
other fixed income securities increase in price when interest rates
decline. The principal amount of the underlying pool represents the
notional amount on which current interest is calculated. The price of
these securities is typically more sensitive to changes in prepayment rates
than traditional mortgage-backed securities (for example, GNMA
pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines established
by the Board of Directors. These securities amount to $925,269 or 1.80% of
the Fund's net assets, at December 31, 1996.
4. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
5. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
6. Interest or dividend is paid in kind.
7. Non-income producing security.
See accompanying Notes to Financial Statements.
42
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 1.4%
- ---------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Interest-Only Stripped Mtg.-Backed Security, Trust 1542,
Cl. QC, 9.115%, 10/15/20 (1) $300,000 $ 77,906
Series 1843, Cl. VB, 7%, 4/15/03 15,000 15,066
Series 1849, Cl. VA, 6%, 12/15/10 27,779 27,276
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates:
6%, 3/1/09 18,812 18,261
Series 1574, Cl. PD, 5.55%, 3/15/13 75,000 74,578
----------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 55,217 54,180
6.50%, 4/1/26 49,168 46,908
7%, 4/1/00 70,941 71,281
Series 1994-13, Cl. B, 6.50%, 2/25/09 75,000 71,788
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates:
Series 1993-181, Cl. C, 5.40%, 10/25/02 60,000 59,531
Series 1993-190, Cl. Z, 5.85%, 7/25/08 36,089 35,496
----------------------------------------------------------------------------------------------------------
GE Capital Mortgage Securities, Inc., Series-HE2, Cl. A3,
7.30%, 3/25/12 35,000 35,438
----------------------------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Series 1996-A,
Cl. A4, 5.85%, 7/15/01 15,000 14,911
-----------
Total Mortgage-Backed Obligations (Cost $600,687) 602,620
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 3.8%
- ---------------------------------------------------------------------------------------------------------------
AGENCY - 0.2%
- ---------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Medium-Term Nts.,
6.56%, 11/13/01 75,000 74,720
- ---------------------------------------------------------------------------------------------------------------
TREASURY - 3.6%
- ---------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 7.50%, 11/15/16 640,000 692,801
----------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.50%, 8/15/05 150,000 151,078
6.75%, 6/30/99 225,000 229,008
7.25%, 8/15/04 250,000 263,281
7.50%, 11/15/01 175,000 184,297
-----------
Total U.S. Government Obligations (Cost $1,565,674) 1,595,185
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 11.9%
- ---------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.5%
- ---------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.7%
----------------------------------------------------------------------------------------------------------
Burmah Castrol plc, 7% Gtd. Medium-Term Nts., 12/15/97 15,000
15,161
----------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co., 8.50% Debs., 2/15/03 30,000
32,054
----------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9.75% Sr. Nts., 2/15/02 (2) 31,000 32,472
----------------------------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts., 6/1/20 15,000
18,372
</TABLE>
43
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS (CONTINUED)
----------------------------------------------------------------------------------------------------------
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05 (3) $ 75,000 $
65,062
----------------------------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 15,000 17,900
----------------------------------------------------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr. Nts., 12/1/04 50,000 55,750
----------------------------------------------------------------------------------------------------------
Sterling Chemical Holdings, Inc., 0%/13.50% Sr. Disc. Nts.,
8/15/08 (3) 100,000 59,000
-----------
295,771
- ---------------------------------------------------------------------------------------------------------------
METALS - 0.3%
----------------------------------------------------------------------------------------------------------
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 35,000 38,037
----------------------------------------------------------------------------------------------------------
WCI Steel, Inc., 10% Sr. Nts., 12/1/04 (2) 75,000 76,875
-----------
114,912
- ---------------------------------------------------------------------------------------------------------------
PAPER - 0.5%
----------------------------------------------------------------------------------------------------------
Celulosa Arauco y Constitucion SA, 7.25% Debs., 6/11/98 15,000
15,150
----------------------------------------------------------------------------------------------------------
Fort Howard Corp.:
9% Sr. Sub. Nts., 2/1/06 50,000 50,937
9.25% Sr. Nts., 3/15/01 20,000 20,850
----------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs., 5/15/05 50,000
55,375
----------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., 9.85% Credit Sensitive Nts., 6/15/97 30,000
30,526
----------------------------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 50,000 50,750
-----------
223,588
- ---------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 4.6%
- ---------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.0%
----------------------------------------------------------------------------------------------------------
Black & Decker Corp., 6.625% Nts., 11/15/00 15,000 14,997
- ---------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.8%
----------------------------------------------------------------------------------------------------------
American Skiing Corp., 12% Sr. Sub. Nts., 7/15/06 (4) 50,000
52,875
----------------------------------------------------------------------------------------------------------
Argosy Gaming Co., 13.25% First Mtg. Nts., 6/1/04 50,000
46,625
----------------------------------------------------------------------------------------------------------
Bally's Casino Holdings, Inc., Zero Coupon Sr. Disc. Nts.,
9.799%, 6/15/98 (5) 100,000 105,140
----------------------------------------------------------------------------------------------------------
Blockbuster Entertainment Corp., 6.625% Sr. Nts., 2/15/98 15,000
15,050
----------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 50,000 47,687
----------------------------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts., 8/15/03 (2) 50,000
49,625
----------------------------------------------------------------------------------------------------------
Griffin Gaming & Entertainment, Inc., 11% Mtg. Debs., 9/15/03 50,000
53,125
----------------------------------------------------------------------------------------------------------
Marvel III Holdings, Inc., 9.125% Sr. Sec. Nts., Series B,
2/15/98 50,000 7,500
----------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts.,
Series B, 11/15/02 50,000 66,250
----------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 50,000
52,750
----------------------------------------------------------------------------------------------------------
Showboat, Inc., 9.25% First Mtg. Bonds, 5/1/08 50,000 49,250
----------------------------------------------------------------------------------------------------------
Stuart Entertainment, Inc., 12.50% Sr. Sub. Nts., 11/15/04 (2) 50,000
51,125
----------------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City
Funding, Inc., 11.25% First Mtg. Nts., 5/1/06 50,000 49,750
----------------------------------------------------------------------------------------------------------
Trump's Castle Funding, Inc., 11.75% Mtg. Nts., 11/15/03 50,000
44,625
----------------------------------------------------------------------------------------------------------
Walt Disney Co., 6.375% Sr. Unsec. Bonds, Series A, 3/30/01 25,000
24,913
----------------------------------------------------------------------------------------------------------
Wyndham Hotel Corp., 10.50% Sr. Sub. Nts., 5/15/06 50,000
53,250
-----------
769,540
</TABLE>
44
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA - 2.0%
----------------------------------------------------------------------------------------------------------
Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05 $ 50,000 $ 50,750
----------------------------------------------------------------------------------------------------------
Australis Holdings PTY Ltd., 0%/15% Sr. Sec. Disc. Nts.,
11/1/02 (3)(4) 100,000 57,500
----------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 9.875% Sr. Sub. Nts., 5/15/06 50,000
51,562
----------------------------------------------------------------------------------------------------------
Century Communications Corp., 9.75% Sr. Nts., 2/15/02 50,000
51,750
----------------------------------------------------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub. Debs., 10/15/06 50,000 51,375
----------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs.,
11/15/07 (3) 50,000 35,875
----------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec.
Disc. Nts., 3/15/04 (3) 50,000 38,500
----------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/11.50% Sr. Deferred
Coupon Nts., Series B, 2/1/06 (3) 150,000 102,750
----------------------------------------------------------------------------------------------------------
MDC Communications Corp., 10.50% Sr. Sub. Nts., 12/1/06 75,000
77,719
----------------------------------------------------------------------------------------------------------
New World Communications Group Holding Corp., Zero
Coupon Sr. Disc. Nts., Series B, 11.022%, 6/15/99 (5) 100,000
83,750
----------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 50,000
51,187
----------------------------------------------------------------------------------------------------------
TeleWest plc:
0%/11% Sr. Disc. Debs., 10/1/07 (3) 25,000 17,500
9.625% Sr. Debs., 10/1/06 25,000 25,750
----------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.45% Nts., 2/1/98 15,000 15,197
----------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec.
Disc. Nts.:
Series B, 14%, 11/15/99 (5) 100,000 71,500
11.657%, 11/15/99 (5) 100,000 71,500
-----------
854,165
- ---------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 0.6%
----------------------------------------------------------------------------------------------------------
Dayton Hudson Co., 9.40% Debs., 2/15/01 30,000 32,828
----------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 10% Sr. Nts., 2/15/01 5,000 5,431
----------------------------------------------------------------------------------------------------------
Price/Costco, Inc., 7.125% Sr. Nts., 6/15/05 40,000 39,607
----------------------------------------------------------------------------------------------------------
Sears Roebuck & Co., 8.39% Medium-Term Nts., 3/23/99 30,000
31,341
----------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 50,000
55,375
----------------------------------------------------------------------------------------------------------
William Carter Co., 10.375% Sr. Sub. Nts., 12/1/06 (2) 75,000
78,000
-----------
242,582
- ---------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 0.2%
----------------------------------------------------------------------------------------------------------
Hines Horticulture, Inc., 11.75% Gtd. Sr. Sub. Nts., Series B,
10/15/05 50,000 53,500
----------------------------------------------------------------------------------------------------------
K Mart Corp., 7.75% Debs., 10/1/12 50,000 42,125
-----------
95,625
- ---------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 1.2%
- ---------------------------------------------------------------------------------------------------------------
FOOD - 0.5%
----------------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 40,000 40,152
----------------------------------------------------------------------------------------------------------
Fresh Del Monte Produce NV, 10% Sr. Nts., Series B,
5/1/03 50,000 47,750
----------------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., 9.125% Debs., 1/15/98 15,000
15,363
----------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 0%/10.75% Jr. Sub. Deferred Coupon
Nts., 11/1/03 (3) 100,000 65,250
----------------------------------------------------------------------------------------------------------
Van De Kamps, Inc., 12% Sr. Sub. Nts., 9/15/05 50,000 55,250
-----------
223,765
</TABLE>
45
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES - 0.6%
----------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp., 6.875% Nts., 7/15/01 $ 30,000 $
30,327
----------------------------------------------------------------------------------------------------------
Dade International, Inc., 11.125% Sr. Sub. Nts., 5/1/06 50,000 54,250
----------------------------------------------------------------------------------------------------------
Graphic Controls Corp., 12% Sr. Sub. Nts., Series A,
9/15/05 50,000 55,625
----------------------------------------------------------------------------------------------------------
Paracelsus Healthcare Corp., 10% Sr. Sub. Unsec. Nts., 8/15/06 50,000
47,125
----------------------------------------------------------------------------------------------------------
Regency Health Services, Inc., 9.875% Gtd. Sr. Sub. Nts., 10/15/02 50,000
50,625
-----------
237,952
- ---------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.1%
----------------------------------------------------------------------------------------------------------
Electrolux AB, 7.75% Sr. Unsub. Debs., 6/17/97 30,000 30,225
----------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 15,000 15,421
-----------
45,646
- ---------------------------------------------------------------------------------------------------------------
ENERGY - 0.5%
- ---------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.5%
----------------------------------------------------------------------------------------------------------
Coastal Corp., 8.125% Sr. Nts., 9/15/02 15,000 15,898
----------------------------------------------------------------------------------------------------------
Falcon Drilling Co., Inc., 9.75% Sr. Nts., Series B, 1/15/01 25,000 26,219
----------------------------------------------------------------------------------------------------------
Falcon Holdings Group LP, 11% Sr. Sub. Nts., 9/15/03 (6) 55,651
47,597
----------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 15,000
15,168
----------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 9.375% Nts., 11/1/03 50,000 51,000
----------------------------------------------------------------------------------------------------------
NorAm Energy Corp., 9.875% Nts., 4/15/97 30,000 30,330
----------------------------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec.
Debs., 2/1/06 25,000 23,702
-----------
209,914
- ---------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 0.0%
----------------------------------------------------------------------------------------------------------
Standard Oil/British Petroleum Co. plc, 9% Debs., 6/1/19 15,000
15,792
- ---------------------------------------------------------------------------------------------------------------
FINANCIAL - 1.4%
- ---------------------------------------------------------------------------------------------------------------
BANKS - 0.5%
----------------------------------------------------------------------------------------------------------
Chevy Chase Bank FSB, 9.25% Sub. Debs., 12/1/08 75,000
76,500
----------------------------------------------------------------------------------------------------------
Citicorp, 5.625% Sr. Nts., 2/15/01 15,000 14,523
----------------------------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 15,000
16,801
----------------------------------------------------------------------------------------------------------
Integra Financial Corp., 6.50% Sub. Nts., 4/15/00 15,000 15,005
----------------------------------------------------------------------------------------------------------
Mellon Capital I, 7.72% Bonds, 12/1/26 50,000 48,635
----------------------------------------------------------------------------------------------------------
Mellon Financial Bank Corp., 6.50% Gtd. Sr. Nts., 12/1/97 25,000
25,130
-----------
196,594
- ---------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 0.7%
----------------------------------------------------------------------------------------------------------
Beneficial Corp., 9.125% Debs., 2/15/98 15,000 15,491
----------------------------------------------------------------------------------------------------------
Capital One Financial Corp., 6.83% Sr. Nts., 5/17/99 10,000 10,052
----------------------------------------------------------------------------------------------------------
Capital One Funding Corp., 7.25% Nts., 12/1/03 40,000 39,600
----------------------------------------------------------------------------------------------------------
Chelsea GCA Realty Partner, Inc., 7.75% Gtd. Unsec.
Unsub. Nts., 1/26/01 30,000 30,381
----------------------------------------------------------------------------------------------------------
Commercial Credit Co., 5.55% Unsec. Nts., 2/15/01 15,000
14,457
----------------------------------------------------------------------------------------------------------
Countrywide Funding Corp., 6.05% Gtd. Medium-Term
Nts., Series D, 3/1/01 15,000 14,683
----------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 6.25% Unsub. Nts., 2/26/98 15,000
15,084
----------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.625% Nts., 2/15/01 25,000
24,109
----------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 50,000 51,125
----------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.50% Nts., 4/1/01 20,000 19,912
</TABLE>
46
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
----------------------------------------------------------------------------------------------------------
Salomon, Inc., 8.69% Sr. Medium-Term Nts., Series D, 3/1/99 $ 35,000 $
36,514
-----------
271,408
- ---------------------------------------------------------------------------------------------------------------
INSURANCE - 0.2%
----------------------------------------------------------------------------------------------------------
Cigna Corp., 7.90% Nts., 12/14/98 30,000 30,867
----------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 9% Sr. Nts., 1/15/99 35,000 36,626
----------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., 6.75% Nts.,
4/15/01 15,000 15,080
-----------
82,573
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 0.6%
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.2%
----------------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 43,000 46,010
----------------------------------------------------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr. Nts., 10/1/05 50,000 52,125
-----------
98,135
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.1%
----------------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Gtd. Sr. Nts., 12/1/06 (4) 40,000
39,450
- ---------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.2%
----------------------------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Nts., 8/1/03 50,000 49,500
----------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc., 8.75% Sub. Nts., 4/1/03 10,000 10,363
-----------
59,863
- ---------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.1%
----------------------------------------------------------------------------------------------------------
Federal Express Corp., 6.25% Nts., 4/15/98 15,000 15,011
----------------------------------------------------------------------------------------------------------
Union Pacific Corp., 7% Nts., 6/15/00 15,000 15,224
-----------
30,235
- ---------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 1.8%
- ---------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 0.1%
----------------------------------------------------------------------------------------------------------
Digital Equipment Corp., 7% Nts., 11/15/97 45,000 45,003
- ---------------------------------------------------------------------------------------------------------------
ELECTRONICS - 0.1%
----------------------------------------------------------------------------------------------------------
Alpine Group, Inc., 12.25% Sr. Nts., 7/15/03 25,000 27,375
- ---------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 1.6%
----------------------------------------------------------------------------------------------------------
American Communications Services, Inc., 0%/13% Sr. Disc.
Nts., 11/1/05 (3) 100,000 59,500
----------------------------------------------------------------------------------------------------------
Arch Communications Group, Inc., 0%/10.875% Sr. Disc.
Nts., 3/15/08 (3) 75,000 43,219
----------------------------------------------------------------------------------------------------------
Brooks Fiber Properties, Inc., 0%/11.875% Sr. Disc. Nts.,
11/1/06 (2)(3) 50,000 32,125
----------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 10.625% Sr. Sub. Nts.,
6/15/02 40,000 42,897
----------------------------------------------------------------------------------------------------------
MCI Communications Corp., 7.125% Sr. Nts., 1/20/00 15,000
15,281
----------------------------------------------------------------------------------------------------------
Metrocall, Inc., 10.375% Sr. Sub. Nts., 10/1/07 50,000 42,750
----------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc., 0%/9.375% Sr. Disc. Nts.,
1/15/04 (3) 75,000 65,625
----------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts.,
8/15/04 (3) 50,000 34,313
----------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.625% Sr. Nts., 8/15/06 (2) 75,000 78,375
----------------------------------------------------------------------------------------------------------
Paging Network, Inc., 10.125% Sr. Sub. Nts., 8/1/07 50,000 51,438
----------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts.,
10/1/03 (3) 75,000 64,500
</TABLE>
47
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY (CONTINUED)
----------------------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 11% Sr.
Nts., 8/15/06 $ 75,000 $ 81,563
----------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc.:
0%/11.125% Sr. Disc. Nts., 7/1/07 (3) 25,000 17,250
9.875% Sr. Nts., 7/1/06 25,000 26,875
-----------
655,711
UTILITIES - 0.3%
ELECTRIC UTILITIES - 0.1%
----------------------------------------------------------------------------------------------------------
Consumers Power Co., 8.75% Mtg. Nts., 2/15/98 15,000
15,350
----------------------------------------------------------------------------------------------------------
El Paso Electric Co., 7.25% First Mtg. Nts., Series A, 2/1/99 10,000
10,063
-----------
25,413
GAS UTILITIES - 0.1%
----------------------------------------------------------------------------------------------------------
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 50,000
49,978
TELEPHONE UTILITIES - 0.1%
----------------------------------------------------------------------------------------------------------
Western Wireless Corp., 10.50% Sr. Sub. Nts., 2/1/07 (2) 50,000
52,438
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $4,880,943)
4,978,425
SHARES
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 69.8%
- ---------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 2.3%
- ---------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.1%
----------------------------------------------------------------------------------------------------------
Daicel Chemical Industries Ltd. 10,000 46,782
----------------------------------------------------------------------------------------------------------
Dexter Corp. 4,000 127,500
----------------------------------------------------------------------------------------------------------
Hoechst AG 1,500 69,398
----------------------------------------------------------------------------------------------------------
IMC Global, Inc. 2,834 110,880
----------------------------------------------------------------------------------------------------------
Millennium Chemicals, Inc. (7) 478 8,484
----------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 1,200 102,000
-----------
465,044
- ---------------------------------------------------------------------------------------------------------------
METALS - 0.9%
----------------------------------------------------------------------------------------------------------
Carpenter Technology Corp. 2,800 102,550
----------------------------------------------------------------------------------------------------------
RMI Titanium Co. (7) 2,800 78,750
----------------------------------------------------------------------------------------------------------
RTZ Corp. plc 4,000 64,272
----------------------------------------------------------------------------------------------------------
UNR Industries, Inc. 12,000 72,000
----------------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 9,000 56,686
-----------
374,258
- ---------------------------------------------------------------------------------------------------------------
PAPER - 0.3%
----------------------------------------------------------------------------------------------------------
Fort Howard Corp. (7) 5,000 138,437
- ---------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 12.6%
- ---------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.7%
----------------------------------------------------------------------------------------------------------
Autoliv AB 2,000 87,580
----------------------------------------------------------------------------------------------------------
Bridgestone Corp. 3,000 56,862
----------------------------------------------------------------------------------------------------------
Camden Property Trust 4,800 137,400
----------------------------------------------------------------------------------------------------------
Capstone Capital Corp. 5,400 120,825
----------------------------------------------------------------------------------------------------------
Cheung Kong (Holdings) Ltd. 9,000 79,994
----------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities, Inc. 2,800 147,700
----------------------------------------------------------------------------------------------------------
Groupe SEB SA 400 78,250
</TABLE>
48
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTOS & HOUSING (CONTINUED)
----------------------------------------------------------------------------------------------------------
Health & Retirement Property Trust 6,200 $ 120,125
----------------------------------------------------------------------------------------------------------
Honda Motor Co. 3,000 85,552
----------------------------------------------------------------------------------------------------------
Meditrust Corp. 3,000 120,000
----------------------------------------------------------------------------------------------------------
Miller Industries, Inc. (7) 3,600 72,000
----------------------------------------------------------------------------------------------------------
Rinnai Corp. 2,000 40,148
-----------
1,146,436
- ---------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 3.3%
----------------------------------------------------------------------------------------------------------
AMR Corp. (7) 1,200 105,750
----------------------------------------------------------------------------------------------------------
Atlas Air, Inc. (7) 4,600 219,650
----------------------------------------------------------------------------------------------------------
CDL Hotels International Ltd. 164,000 93,820
----------------------------------------------------------------------------------------------------------
Dover Downs Entertainment, Inc. (7) 3,700 66,137
----------------------------------------------------------------------------------------------------------
Einstein/Noah Bagel Corp. (7) 2,700 80,325
----------------------------------------------------------------------------------------------------------
EMI Group plc 2,700 63,815
----------------------------------------------------------------------------------------------------------
Galoob Toys, Inc. (7) 500 7,000
----------------------------------------------------------------------------------------------------------
Granada Group plc 5,000 73,916
----------------------------------------------------------------------------------------------------------
Landry's Seafood Restaurants, Inc. (7) 2,800 59,850
----------------------------------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A (7) 1,500 58,687
----------------------------------------------------------------------------------------------------------
Papa John's International, Inc. (7) 2,625 88,594
----------------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 6,300 58,275
----------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc. (7) 5,125 157,594
----------------------------------------------------------------------------------------------------------
VideoServer, Inc. (7) 2,700 114,750
----------------------------------------------------------------------------------------------------------
Wyndham Hotel Corp. (7) 4,900 120,662
-----------
1,368,825
- ---------------------------------------------------------------------------------------------------------------
MEDIA - 1.3%
----------------------------------------------------------------------------------------------------------
Benpres Holdings Corp., Sponsored GDR (7) 5,000 37,500
----------------------------------------------------------------------------------------------------------
Emmis Broadcasting Corp., Cl. A (7) 2,200 72,050
----------------------------------------------------------------------------------------------------------
Heftel Broadcasting Corp., A Shares (7) 2,200 69,300
----------------------------------------------------------------------------------------------------------
Reed International plc 5,000 94,044
----------------------------------------------------------------------------------------------------------
Reuters Holdings plc 8,000 102,986
----------------------------------------------------------------------------------------------------------
Television Broadcasts Ltd. 21,000 83,891
----------------------------------------------------------------------------------------------------------
Wolters Kluwer NV (7) 700 92,875
-----------
552,646
- ---------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 2.3%
----------------------------------------------------------------------------------------------------------
Dollar Tree Stores, Inc. (7) 2,400 91,800
----------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. (7) 3,300 112,612
----------------------------------------------------------------------------------------------------------
Marks & Spencer plc 8,000 67,424
----------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc. (7) 5,000 126,250
----------------------------------------------------------------------------------------------------------
North Face, Inc. (The) (7) 3,700 71,225
----------------------------------------------------------------------------------------------------------
Price/Costco, Inc. (7) 4,700 118,087
----------------------------------------------------------------------------------------------------------
St. John Knits, Inc. 3,000 130,500
----------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 4,350 126,150
----------------------------------------------------------------------------------------------------------
Zeneca Group plc 4,000 112,715
-----------
956,763
- ---------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 3.0%
----------------------------------------------------------------------------------------------------------
adidas AG 600 51,781
----------------------------------------------------------------------------------------------------------
Brown Group, Inc. 6,500 119,437
----------------------------------------------------------------------------------------------------------
CDW Computer Centers, Inc. (7) 2,550 151,247
----------------------------------------------------------------------------------------------------------
Cifra SA de CV, Unsponsored ADR, B Shares (7) 38,000
46,436
</TABLE>
49
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: SPECIALTY (CONTINUED)
----------------------------------------------------------------------------------------------------------
Dickson Concepts International Ltd. 22,000 $ 82,482
----------------------------------------------------------------------------------------------------------
Finish Line, Inc., Cl. A (7) 6,400 135,200
----------------------------------------------------------------------------------------------------------
Jusco Co. 2,000 67,718
----------------------------------------------------------------------------------------------------------
Koninklijke Ahold NV 1,733 108,204
----------------------------------------------------------------------------------------------------------
New England Business Service, Inc. 4,200 90,300
----------------------------------------------------------------------------------------------------------
Next plc 7,000 68,229
----------------------------------------------------------------------------------------------------------
Shimamura Co. Ltd. 2,000 68,579
----------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (7) 4,500 135,000
----------------------------------------------------------------------------------------------------------
U.S. Office Products Co. (7) 3,700 126,262
-----------
1,250,875
- ---------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 10.0%
- ---------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.9%
----------------------------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 5,600 224,000
----------------------------------------------------------------------------------------------------------
Embotelladora Andina SA, Sponsored ADR 2,800 85,400
----------------------------------------------------------------------------------------------------------
Quilmes Industrial Quinsa SA, Sponsored ADR 7,500 68,437
-----------
377,837
- ---------------------------------------------------------------------------------------------------------------
EDUCATION - 0.4%
----------------------------------------------------------------------------------------------------------
ITT Educational Services, Inc. (7) 3,700 85,562
----------------------------------------------------------------------------------------------------------
Learning Tree International, Inc. (7) 3,000 88,500
-----------
174,062
- ---------------------------------------------------------------------------------------------------------------
FOOD - 1.5%
----------------------------------------------------------------------------------------------------------
American Stores Co. 3,200 130,800
----------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 4,515 99,330
----------------------------------------------------------------------------------------------------------
Carrefour Supermarche SA 172 111,695
----------------------------------------------------------------------------------------------------------
Danisco AS 1,500 91,034
----------------------------------------------------------------------------------------------------------
Kroger Co. (7) 2,100 97,650
----------------------------------------------------------------------------------------------------------
William Morrison Supermarkets plc 34,000 95,808
-----------
626,317
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 2.8%
----------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 1,900 93,775
----------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,800 195,750
----------------------------------------------------------------------------------------------------------
Clintrials Research, Inc. (7) 4,700 106,925
----------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc. (7) 3,600 171,900
----------------------------------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 3,600 114,300
----------------------------------------------------------------------------------------------------------
Jones Medical Industries, Inc. 3,500 128,187
----------------------------------------------------------------------------------------------------------
Medicis Pharmaceutical Corp., Cl. A (7) 1,800 79,200
----------------------------------------------------------------------------------------------------------
Novartis AG (7) 100 114,171
----------------------------------------------------------------------------------------------------------
Schering AG 1,000 84,290
----------------------------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 5,000 104,678
-----------
1,193,176
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 3.2%
----------------------------------------------------------------------------------------------------------
CNS, Inc. (7) 3,200 46,000
----------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 2,950 120,212
----------------------------------------------------------------------------------------------------------
Compdent Corp. (7) 2,000 70,500
----------------------------------------------------------------------------------------------------------
Luxottica Group SpA, Sponsored ADR 1,600 83,200
----------------------------------------------------------------------------------------------------------
National Surgery Centers, Inc. (7) 3,100 117,800
----------------------------------------------------------------------------------------------------------
OrNda Healthcorp (7) 3,400 99,450
----------------------------------------------------------------------------------------------------------
Orthodontic Centers of America, Inc. (7) 3,700 59,200
</TABLE>
50
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES (CONTINUED)
----------------------------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc. (7) 3,100 $ 114,312
----------------------------------------------------------------------------------------------------------
Physician Sales & Service, Inc. (7) 5,000 71,875
----------------------------------------------------------------------------------------------------------
Renal Treatment Centers, Inc. (7) 4,200 107,100
----------------------------------------------------------------------------------------------------------
Rural/Metro Corp. (7) 3,500 126,000
----------------------------------------------------------------------------------------------------------
SmithKline Beecham plc 13,296 184,372
----------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc. (7) 2,800 101,500
----------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. (7) 1,300 44,687
-----------
1,346,208
- ---------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.0%
----------------------------------------------------------------------------------------------------------
Blyth Industries, Inc. (7) 3,200 146,000
----------------------------------------------------------------------------------------------------------
L'OREAL 250 93,965
----------------------------------------------------------------------------------------------------------
Premark International, Inc. 5,600 124,600
----------------------------------------------------------------------------------------------------------
Tupperware Corp. 1,400 75,075
-----------
439,640
- ---------------------------------------------------------------------------------------------------------------
TOBACCO - 0.2%
----------------------------------------------------------------------------------------------------------
Imperial Tobacco Group plc, ADR (7) 1,675 21,613
----------------------------------------------------------------------------------------------------------
PT Gudang Garam (7) 18,000 77,714
-----------
99,327
- ---------------------------------------------------------------------------------------------------------------
ENERGY - 3.1%
----------------------------------------------------------------------------------------------------------
Amoco Corp. 2,900 233,450
----------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 1,300 172,250
----------------------------------------------------------------------------------------------------------
Chevron Corp. 4,600 299,000
----------------------------------------------------------------------------------------------------------
Exxon Corp. 2,600 254,800
----------------------------------------------------------------------------------------------------------
Mobil Corp. 2,100 256,725
----------------------------------------------------------------------------------------------------------
Total SA, B Shares 1,000 81,174
-----------
1,297,399
- ---------------------------------------------------------------------------------------------------------------
FINANCIAL - 8.2%
- ---------------------------------------------------------------------------------------------------------------
BANKS - 3.7%
----------------------------------------------------------------------------------------------------------
Banco Popular Espanol SA 400 78,552
----------------------------------------------------------------------------------------------------------
Bank of Boston Corp. 4,800 308,400
----------------------------------------------------------------------------------------------------------
BankAmerica Corp. 3,700 369,075
----------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 2,200 196,350
----------------------------------------------------------------------------------------------------------
HSBC Holdings plc 4,000 85,585
----------------------------------------------------------------------------------------------------------
Malayan Banking Berhad 6,000 66,521
----------------------------------------------------------------------------------------------------------
NationsBank Corp. 2,000 195,500
----------------------------------------------------------------------------------------------------------
PNC Bank Corp. 6,300 237,037
-----------
1,537,020
- ---------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.9%
----------------------------------------------------------------------------------------------------------
Amresco, Inc. (7) 4,600 123,050
----------------------------------------------------------------------------------------------------------
First Pacific Co. Ltd. 42,000 54,570
----------------------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. 36,000 81,840
----------------------------------------------------------------------------------------------------------
ING Groep NV 2,500 89,898
----------------------------------------------------------------------------------------------------------
Lend Lease Corp. Ltd. 4,000 77,519
----------------------------------------------------------------------------------------------------------
Nichiei Co. Ltd. 1,000 73,318
----------------------------------------------------------------------------------------------------------
Oxford Resources Corp., Cl. A (7) 3,200 98,800
----------------------------------------------------------------------------------------------------------
Perlis Plantations Berhad 25,500 79,261
----------------------------------------------------------------------------------------------------------
Salomon, Inc. 1,500 70,687
</TABLE>
51
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
---------------------------------------------------------------------------------------------------------
Sirrom Capital Corp. 2,900 $ 106,575
---------------------------------------------------------------------------------------------------------
Southcorp Holdings Ltd. 25,000 79,425
---------------------------------------------------------------------------------------------------------
Swire Pacific Ltd., Cl. B 57,000 86,219
---------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 2,500 113,437
---------------------------------------------------------------------------------------------------------
United Industrial Corp. Ltd. 100,000 84,357
-------------
1,218,956
- --------------------------------------------------------------------------------------------------------------
INSURANCE - 1.6%
---------------------------------------------------------------------------------------------------------
AFLAC, Inc. 3,100 132,525
---------------------------------------------------------------------------------------------------------
Conseco, Inc. 1,800 114,750
---------------------------------------------------------------------------------------------------------
General Re Corp. 900 141,975
---------------------------------------------------------------------------------------------------------
Hartford Steam Boiler Inspection & Insurance Co. 2,500 115,938
---------------------------------------------------------------------------------------------------------
Sumitomo Marine & Fire Insurance Co. 8,000 49,625
---------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 3,900 137,963
-------------
692,776
- --------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 9.4%
- --------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.5%
---------------------------------------------------------------------------------------------------------
ABB AG 65 80,601
---------------------------------------------------------------------------------------------------------
Johnson Electric Holdings Ltd. 30,000 82,999
---------------------------------------------------------------------------------------------------------
Mabuchi Motor Co. 800 40,183
-------------
203,783
- --------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 3.5%
---------------------------------------------------------------------------------------------------------
Computer Horizons Corp. (7) 3,500 134,750
---------------------------------------------------------------------------------------------------------
Corestaff, Inc. (7) 5,300 125,544
---------------------------------------------------------------------------------------------------------
Corrections Corp. of America (7) 4,600 140,875
---------------------------------------------------------------------------------------------------------
DT Industries, Inc. 1,800 63,000
---------------------------------------------------------------------------------------------------------
Hays plc 9,000 86,644
---------------------------------------------------------------------------------------------------------
Kurita Water Industries Ltd. 3,000 60,481
---------------------------------------------------------------------------------------------------------
NGK Spark Plug Co. 10,000 109,417
---------------------------------------------------------------------------------------------------------
NOVA Corp. (7) 3,000 66,375
---------------------------------------------------------------------------------------------------------
Precision Response Corp. (7) 1,900 66,738
---------------------------------------------------------------------------------------------------------
SGS Societe Generale de Surveillance Holding SA, Series B 35
85,759
---------------------------------------------------------------------------------------------------------
SITEL Corp. (7) 6,000 85,500
---------------------------------------------------------------------------------------------------------
Tetra Tech, Inc. (7) 4,500 88,875
---------------------------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A (7) 3,900 129,675
---------------------------------------------------------------------------------------------------------
United Waste Systems, Inc. (7) 6,400 220,000
-------------
1,463,633
- --------------------------------------------------------------------------------------------------------------
MANUFACTURING - 4.9%
---------------------------------------------------------------------------------------------------------
AGCO Corp. 3,800 108,775
---------------------------------------------------------------------------------------------------------
Bic Corp. 500 74,826
---------------------------------------------------------------------------------------------------------
Canon Sales Co., Inc. 3,300 73,352
---------------------------------------------------------------------------------------------------------
Case Corp. 2,500 136,250
---------------------------------------------------------------------------------------------------------
Chicago Miniature Lamp, Inc. (7) 2,850 118,275
---------------------------------------------------------------------------------------------------------
Deere & Co. 2,900 117,813
---------------------------------------------------------------------------------------------------------
General Signal Corp. 2,700 115,425
---------------------------------------------------------------------------------------------------------
Hanson plc, ADR 6,700 45,225
---------------------------------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 10,000 78,539
---------------------------------------------------------------------------------------------------------
Ingersoll-Rand Co. 2,100 93,450
---------------------------------------------------------------------------------------------------------
Komatsu Ltd. 7,000 57,293
</TABLE>
52
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING (CONTINUED)
---------------------------------------------------------------------------------------------------------
Mannesmann AG 195 $ 83,790
---------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc. 1,995 45,137
---------------------------------------------------------------------------------------------------------
Mitsubishi Heavy Industries Ltd. 6,000 47,558
---------------------------------------------------------------------------------------------------------
NSK Ltd. 3,000 18,144
---------------------------------------------------------------------------------------------------------
PACCAR, Inc. 3,900 265,200
---------------------------------------------------------------------------------------------------------
Shinmaywa Industries Ltd. 2,000 14,698
---------------------------------------------------------------------------------------------------------
Sidel SA 1,200 82,405
---------------------------------------------------------------------------------------------------------
SMC Corp. 100 6,711
---------------------------------------------------------------------------------------------------------
Textron, Inc. 2,200 207,350
---------------------------------------------------------------------------------------------------------
Tyco International Ltd. 1,900 100,463
---------------------------------------------------------------------------------------------------------
U.S. Industries, Inc. (7) 4,600 158,125
-------------
2,048,804
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
---------------------------------------------------------------------------------------------------------
Brambles Industries Ltd. 4,000 77,996
---------------------------------------------------------------------------------------------------------
Union Pacific Corp. 2,000 120,250
-------------
198,246
- --------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 16.1%
- --------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 3.1%
---------------------------------------------------------------------------------------------------------
General Dynamics Corp. 4,000 282,000
---------------------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 4,600 186,300
---------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 2,700 247,050
---------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 2,400 153,600
---------------------------------------------------------------------------------------------------------
Rockwell International Corp. 3,500 213,063
---------------------------------------------------------------------------------------------------------
TRW, Inc. 4,300 212,850
-------------
1,294,863
- --------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 1.9%
---------------------------------------------------------------------------------------------------------
Canon, Inc. 6,000 132,334
---------------------------------------------------------------------------------------------------------
Citrix Systems, Inc. (7) 2,700 105,469
---------------------------------------------------------------------------------------------------------
Dell Computer Corp. (7) 2,200 116,875
---------------------------------------------------------------------------------------------------------
Gateway 2000, Inc. (7) 1,100 58,919
---------------------------------------------------------------------------------------------------------
Henry (Jack) & Associates, Inc. 2,200 78,650
---------------------------------------------------------------------------------------------------------
Insight Enterprises, Inc. (7) 2,400 67,200
---------------------------------------------------------------------------------------------------------
Network Appliance, Inc. (7) 1,800 91,575
---------------------------------------------------------------------------------------------------------
Storage Technology Corp. (New) (7) 3,400 161,925
-------------
812,947
- --------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 5.1%
---------------------------------------------------------------------------------------------------------
Applix, Inc. (7) 3,000 65,625
---------------------------------------------------------------------------------------------------------
Cambridge Technology Partners, Inc. (7) 3,700 124,181
---------------------------------------------------------------------------------------------------------
EPIC Design Technology, Inc. (7) 2,800 70,000
---------------------------------------------------------------------------------------------------------
Inso Corp. (7) 1,700 67,575
---------------------------------------------------------------------------------------------------------
JDA Software Group, Inc. (7) 2,600 74,100
---------------------------------------------------------------------------------------------------------
Medic Computer Systems, Inc. (7) 1,800 72,563
---------------------------------------------------------------------------------------------------------
National Data Corp. 1,700 73,950
---------------------------------------------------------------------------------------------------------
Pegasystems, Inc. (7) 2,500 75,313
---------------------------------------------------------------------------------------------------------
Project Software & Development, Inc. (7) 3,800 161,025
---------------------------------------------------------------------------------------------------------
Rational Software Corp. (7) 5,700 225,506
---------------------------------------------------------------------------------------------------------
Remedy Corp. (7) 2,400 129,000
---------------------------------------------------------------------------------------------------------
SAP AG, Preference 400 54,973
</TABLE>
53
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE (CONTINUED)
---------------------------------------------------------------------------------------------------------
Sapient Corp. (7) 1,600 $ 67,400
---------------------------------------------------------------------------------------------------------
Scopus Technology, Inc. (7) 2,200 102,300
---------------------------------------------------------------------------------------------------------
Security Dynamics Technologies, Inc. (7) 3,100 97,650
---------------------------------------------------------------------------------------------------------
Sykes Enterprises, Inc. (7) 2,700 101,250
---------------------------------------------------------------------------------------------------------
Technology Solutions Co. (7) 2,200 91,300
---------------------------------------------------------------------------------------------------------
Verilink Corp. (7) 3,300 109,725
---------------------------------------------------------------------------------------------------------
Veritas Software Corp. (7) 2,350 116,913
---------------------------------------------------------------------------------------------------------
Viasoft, Inc. (7) 1,400 66,150
---------------------------------------------------------------------------------------------------------
Visio Corp. (7) 1,800 89,100
---------------------------------------------------------------------------------------------------------
Wind River Systems (7) 1,900 90,013
-------------
2,125,612
- --------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.3%
---------------------------------------------------------------------------------------------------------
Bowthorpe plc 13,000 100,879
---------------------------------------------------------------------------------------------------------
Electrocomponents plc 13,000 102,660
---------------------------------------------------------------------------------------------------------
Getronics NV 3,300 89,476
---------------------------------------------------------------------------------------------------------
Input/Output, Inc. (7) 1,900 35,150
---------------------------------------------------------------------------------------------------------
Intel Corp. 1,000 130,938
---------------------------------------------------------------------------------------------------------
Keyence Corp. 600 73,921
---------------------------------------------------------------------------------------------------------
Kyocera Corp. 1,000 62,204
---------------------------------------------------------------------------------------------------------
Matsushita Electric Industrial Co. 4,000 65,133
---------------------------------------------------------------------------------------------------------
Matsushita Electric Works Ltd. 6,000 51,538
---------------------------------------------------------------------------------------------------------
Nitto Denko Corp. 6,000 87,878
---------------------------------------------------------------------------------------------------------
Samsung Electronics Co., Sponsored GDR (2) 1,950 35,978
---------------------------------------------------------------------------------------------------------
Sony Corp. 1,400 91,548
---------------------------------------------------------------------------------------------------------
Supertex, Inc. (7) 2,700 35,438
---------------------------------------------------------------------------------------------------------
TDK Corp. 2,000 130,094
---------------------------------------------------------------------------------------------------------
Vitesse Semiconductor Corp. (7) 2,900 131,950
---------------------------------------------------------------------------------------------------------
Waters Corp. (7) 5,000 151,875
-------------
1,376,660
- --------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 2.7%
---------------------------------------------------------------------------------------------------------
Allen Group, Inc. (7) 3,500 77,875
---------------------------------------------------------------------------------------------------------
Aspect Telecommunications Corp. (7) 3,200 203,200
---------------------------------------------------------------------------------------------------------
British Sky Broadcasting Group plc 8,500 76,006
---------------------------------------------------------------------------------------------------------
Cable Design Technologies Corp. (7) 2,750 85,594
---------------------------------------------------------------------------------------------------------
Comverse Technology, Inc. (7) 3,900 147,469
---------------------------------------------------------------------------------------------------------
DSP Communications, Inc. (7) 7,800 151,125
---------------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 3,520 106,260
---------------------------------------------------------------------------------------------------------
Premisys Communications, Inc. (7) 1,400 47,250
---------------------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd. 19,000 96,923
---------------------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 25,000 63,200
---------------------------------------------------------------------------------------------------------
Vodafone Group plc 22,000 92,896
-------------
1,147,798
- --------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1%
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.2%
---------------------------------------------------------------------------------------------------------
American Electric Power Co., Inc. 4,100 168,613
---------------------------------------------------------------------------------------------------------
CalEnergy, Inc. (7) 2,100 70,613
---------------------------------------------------------------------------------------------------------
Entergy Corp. 7,100 197,025
---------------------------------------------------------------------------------------------------------
FPL Group, Inc. 4,900 225,400
</TABLE>
54
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES (CONTINUED)
---------------------------------------------------------------------------------------------------------
Illinova Corp. 3,400 $ 93,500
---------------------------------------------------------------------------------------------------------
Kansas City Power & Light Co. 4,500 128,250
---------------------------------------------------------------------------------------------------------
Korea Electric Power Corp. 2,400 69,829
---------------------------------------------------------------------------------------------------------
Texas Utilities Co. 3,800 154,850
---------------------------------------------------------------------------------------------------------
Veba AG 2,000 114,852
---------------------------------------------------------------------------------------------------------
Western Resources, Inc. 3,500 108,063
-------------
1,330,995
- --------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 3.3%
---------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc. 3,800 241,775
---------------------------------------------------------------------------------------------------------
El Paso Natural Gas Co. 3,500 176,750
---------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. 43,200 83,496
---------------------------------------------------------------------------------------------------------
National Fuel Gas Co. 3,700 152,625
---------------------------------------------------------------------------------------------------------
PanEnergy Corp. 9,400 423,000
---------------------------------------------------------------------------------------------------------
Questar Corp. 6,300 231,525
---------------------------------------------------------------------------------------------------------
RWE AG, Preference 1,850 61,822
-------------
1,370,993
- --------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.6%
---------------------------------------------------------------------------------------------------------
Ameritech Corp. 2,000 121,250
---------------------------------------------------------------------------------------------------------
DDI Corp. 20 131,989
---------------------------------------------------------------------------------------------------------
GTE Corp. 5,400 245,700
---------------------------------------------------------------------------------------------------------
NYNEX Corp. 2,300 110,688
---------------------------------------------------------------------------------------------------------
Telefonica de Espana, ADS 3,000 69,657
-------------
679,284
-------------
Total Common Stocks (Cost $24,385,177) 29,309,620
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.5%
- --------------------------------------------------------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series A, Non-vtg. 1,100 147,125
---------------------------------------------------------------------------------------------------------
K-III Communications Corp., 10% Exchangeable Preferred
Stock, Series D (4) 500 49,125
---------------------------------------------------------------------------------------------------------
Renong Berhad, 4% Irredeemable Cv. Unsec. Loan Stocks (7) 4,400
1,847
-------------
Total Preferred Stocks (Cost $157,086) 198,097
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- --------------------------------------------------------------------------------------------------------------
American Communications Services, Inc. Wts., Exp. 11/05 100
9,000
---------------------------------------------------------------------------------------------------------
Haw Par Brothers International Ltd. Wts., Exp. 7/01 2,500 2,484
---------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. Wts., Exp. 9/97 2,600 1,446
---------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 50 --
---------------------------------------------------------------------------------------------------------
Renong Berhad Wts., Exp. 11/00 2,750 1,350
-------------
Total Rights, Warrants and Certificates (Cost $2,247) 14,280
</TABLE>
55
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT - 14.4%
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with State Street Bank and Trust
Co., 4.50%, dated 12/31/96, to be repurchased
at $6,034,508 on 1/2/97, collateralized by U.S. Treasury
Bonds, 8.875%-12%, 8/15/13-2/15/19, with a value of
$3,157,394 and U. S. Treasury Nts., 4.75%-6.75%,
2/28/98-4/30/00, with a value of $3,070,802
(Cost $6,033,000) $ 6,033,000 $ 6,033,000
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $37,624,815) 101.8%
42,731,227
---------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.8)
(737,033)
----------- -------------
NET ASSETS 100.0% $ 41,994,194
----------- -------------
----------- -------------
</TABLE>
1. Interest-Only Strips represent the right to receive the monthly
interest payments on an underlying pool of mortgage loans. These
securities typically decline in price as interest rates decline. Most
other fixed income securities increase in price when interest rates
decline. The principal amount of the underlying pool represents the
notional amount on which current interest is calculated. The price of
these securities is typically more sensitive to changes in prepayment
rates than traditional mortgage-backed securities (for example, GNMA
pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future
cash flows.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines
established by the Board of Directors. These securities amount to
$487,013 or 1.16% of the Fund's net assets, at December 31, 1996.
3. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
4. Identifies issues considered to be illiquid. These securities
amount to $198,950 or 0.47% of the Fund's net assets, at December 31,
1996.
5. For zero coupon bonds, the interest rate shown is the effective
yield on the date of purchase.
6. Interest or dividend is paid in kind.
7. Non-income producing security.
See accompanying Notes to Financial Statements.
56
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
TOTAL GOVERNMENT
INTERNATIONAL
RETURN GROWTH SECURITIES
EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO
- -------------------------------------------------------------------
<S> <C> <C> <C>
<C>
ASSETS:
Investments, at value (cost * )(including repurchase
agreements **) - see accompanying statements $1,122,312,563 $592,436,908
$22,765,667
$62,582,295
Cash -- -- 64,328
135,043
Receivables:
Dividends, interest and principal paydowns 7,390,607 706,621
418,744
71,288
Shares of capital stock sold 417,064 341,044 --
41,650
Investments sold 988 599 --
479,252
Other 23,467 7,576 3,102
3,535
- -------------------------------------------------------------------
Total assets 1,130,144,689 593,492,748 23,251,841
63,313,063
- -------------------------------------------------------------------
LIABILITIES:
Bank overdraft 357,817 267,330 --
--
Payables and other liabilities:
Investments purchased 7,605,233 6,714,730 --
657,448
Shares of capital stock redeemed -- 203,044 3,363
4,778
Custodian fees 65,755 35,170 2,585
49,143
Directors' fees 3,337 225 --
236
Legal and auditing fees 25,691 19,830 6,083
12,522
Other 11,188 30,141 4,232
3,475
- -------------------------------------------------------------------
Total liabilities 8,069,021 7,270,470 16,263
727,602
- -------------------------------------------------------------------
NET ASSETS $1,122,075,668 $586,222,278
$23,235,578
$62,585,461
- -------------------------------------------------------------------
- -------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock $586,603 $196,587 $21,267
$48,645
Additional paid-in capital 911,149,095 419,687,972 22,202,774
52,782,526
Undistributed net investment income 38,224,047 6,282,780
1,450,831
356,464
Accumulated net realized gain (loss) from investments
and foreign currency transactions 94,241,183 45,811,976
(406,979)
1,034,996
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities denominated in foreign currencies 77,874,740 114,242,963
(32,315)
8,362,830
- -------------------------------------------------------------------
NET ASSETS $1,122,075,668 $586,222,278
$23,235,578
$62,585,461
- -------------------------------------------------------------------
- -------------------------------------------------------------------
SHARES OF CAPITAL STOCK OUTSTANDING 586,602,688
196,587,477 21,267,047
48,644,884
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.91 $2.98
$1.09
$1.29
*Cost $1,044,437,823 $478,193,945 $22,797,982
$54,219,894
**Repurchase agreements -- -- --
$1,802,000
</TABLE>
See accompanying Notes to Financial Statements.
57
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
LIFESPAN LIFESPAN
DIVERSIFIED LIFESPAN CAPITAL
INCOME BALANCED APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost * )(including repurchase
agreements **) - see accompanying statements $24,890,439 $51,187,601
$42,731,227
Cash 115,167 -- --
Receivables:
Dividends and interest 305,332 338,750 151,404
Shares of capital stock sold -- 1,799 25,993
Investments sold 4,449 1,877 1,877
Other 2,386 3,217 3,240
----------------------------------------------
Total assets 25,317,773 51,533,244 42,913,741
----------------------------------------------
LIABILITIES:
Bank overdraft -- 30,455 26,247
Payables and other liabilities:
Investments purchased -- 111,885 830,590
Shares of capital stock redeemed
Custodian fees 27,295 39,911 48,357
Directors' fees 115 32 236
Legal and auditing fees 15,348 10,092 10,718
Other 916 4,546 3,399
----------------------------------------------
Total liabilities 43,674 196,921 919,547
----------------------------------------------
NET ASSETS $25,274,099 $51,336,323 $41,994,194
----------------------------------------------
----------------------------------------------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock $22,947 $43,471 $33,955
Additional paid-in capital 23,074,587 44,686,448 35,551,545
Undistributed net investment income 1,127,966 1,053,055
371,899
Accumulated net realized gain (loss) from investments
and foreign currency transactions 26,677 516,364 930,339
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities denominated in foreign currencies 1,021,922 5,036,985
5,106,456
----------------------------------------------
NET ASSETS $25,274,099 $51,336,323 $41,994,194
----------------------------------------------
----------------------------------------------
SHARES OF CAPITAL STOCK OUTSTANDING 22,947,272
43,471,343 33,955,474
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.10 $1.18
$1.24
*Cost $23,868,516 $46,150,645 $37,624,815
**Repurchase agreements $1,678,000 $6,244,000
$6,033,000
</TABLE>
See accompanying Notes to Financial Statements.
58
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
TOTAL GOVERNMENT
INTERNATIONAL
RETURN GROWTH SECURITIES
EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO
- ----------------------------------------------------------------
<S> <C> <C> <C>
<C>
INVESTMENT INCOME:
Interest (net of withholding taxes of *) $41,163,350 $2,981,247
$1,606,277
$ 271,792
Dividends (net of withholding taxes of **) 8,211,955 7,925,458 --
847,225
- ----------------------------------------------------------------
Total income 49,375,305 10,906,705 1,606,277
1,119,017
- ----------------------------------------------------------------
EXPENSES:
Management fees - see applicable note 5,817,245 2,801,667
125,427
569,471
Custodian fees and expenses 4,429 16,620 8,585
88,174
Legal and auditing fees 1,165 5,693 6,410
23,739
Directors' fees and expenses 841 456 --
3,466
Registration and filing fees 10,587 29,232 --
3,210
Other -- -- 6,417
--
- ----------------------------------------------------------------
Total expenses 5,834,267 2,853,668 146,839
688,060
- ----------------------------------------------------------------
NET INVESTMENT INCOME 43,541,038 8,053,037
1,459,438
430,957
- ----------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments 94,961,143 45,460,285 45,633
2,696,100
Foreign currency transactions -- -- --
(330,718)
Net change in unrealized appreciation or
depreciation on:
Investments (35,958,926) 34,820,597 (990,673)
4,643,048
Translation of assets and liabilities
denominated in foreign currencies -- -- --
(666,798)
- ----------------------------------------------------------------
Net realized and unrealized gain (loss) 59,002,217 80,280,882
(945,040)
6,341,632
- ----------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $102,543,255 $88,333,919
$514,398
$6,772,589
- ----------------------------------------------------------------
- ----------------------------------------------------------------
*Interest $1,759 $1,593 --
$13,057
**Dividends $10,551 $9,502 --
$113,453
</TABLE>
See accompanying Notes to Financial Statements.
59
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
LIFESPAN LIFESPAN
DIVERSIFIED LIFESPAN CAPITAL
INCOME BALANCED
APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of withholding taxes of *) $1,349,314 $1,427,764
$619,088
Dividends (net of withholding taxes of **) 228,453 458,739
447,273
--------------------------------------------------
Total income 1,577,767 1,886,503 1,066,361
--------------------------------------------------
EXPENSES:
Management fees - see applicable note 171,569 355,893
281,564
Custodian fees and expenses 16,922 42,931 77,488
Accounting services fees 37,500 60,000 52,500
Legal and auditing fees 13,142 24,832 12,553
Directors' fees and expenses 3,740 3,628 3,183
Registration and filing fees 836 3,331 3,164
--------------------------------------------------
Total expenses 243,709 490,615 430,452
--------------------------------------------------
NET INVESTMENT INCOME 1,334,058 1,395,888
635,909
--------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments 34,119 753,292 1,195,176
Foreign currency transactions -- (39,436) (39,335)
Net change in unrealized appreciation or
depreciation on:
Investments 218,964 3,210,263 3,344,778
Translation of assets and liabilities
denominated in foreign currencies -- (77,981) (74,912)
--------------------------------------------------
Net realized and unrealized gain (loss) 253,083 3,846,138 4,425,707
--------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,587,141 $5,242,026
$5,061,616
--------------------------------------------------
--------------------------------------------------
*Interest $456 $7,538 $5,075
**Dividends $476 $3,324 $5,855
</TABLE>
See accompanying Notes to Financial Statements.
60
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
TOTAL RETURN GROWTH
PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------
1996 1995 1996
1995
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------
OPERATIONS:
Net investment income $43,541,038 $38,709,494 $8,053,037
$6,203,284
Net realized gain (loss) 94,961,143 34,241,934 45,460,285
23,356,603
Net change in unrealized appreciation or depreciation (35,958,926) 115,223,776
34,820,597
67,825,683
- ------------------------------------------------------------------
Net increase in net assets resulting from operations 102,543,255 188,175,204
88,333,919
97,385,570
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (5,852,700) (38,529,255) (1,827,903)
(6,148,312)
Distributions from net realized gain (3,476,504) (31,137,474) (2,683,361)
(21,759,918)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets
resulting from capital stock
transactions - Note 2 34,935,466 133,283,017 96,464,501
106,262,512
- ------------------------------------------------------------------
NET ASSETS:
Total increase (decrease) 128,149,517 251,791,492 180,287,156
175,739,852
Beginning of period 993,926,151 742,134,659 405,935,122
230,195,270
- ------------------------------------------------------------------
End of period $1,122,075,668 $993,926,151 $586,222,278
$405,935,122
- ------------------------------------------------------------------
- ------------------------------------------------------------------
Undistributed (overdistributed) net investment income $38,224,047 $373,665
$6,282,780
$57,646
</TABLE>
See accompanying Notes to Financial Statements.
61
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL
SECURITIES EQUITY
PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------
1996 1995 1996
1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
OPERATIONS:
Net investment income $1,459,438 $1,287,278 $430,957
$617,135
Net realized gain (loss) 45,633 (111,999) 2,365,382
(126,829)
Net change in unrealized appreciation or depreciation (990,673) 2,348,269
3,976,250
3,546,088
- ----------------------------------------------------------------
Net increase in net assets resulting from operations 514,398 3,523,548 6,772,589
4,036,394
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (13,793) (1,281,570) (554,917)
(1,618,886)
Distributions from net realized gain -- -- --
(334,432)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets
resulting from capital stock
transactions - Note 2 (1,573,635) 3,282,290 10,593,270
12,088,408
- ----------------------------------------------------------------
NET ASSETS:
Total increase (decrease) (1,073,030) 5,524,268 16,810,942
14,171,484
Beginning of period 24,308,608 18,784,340 45,774,519
31,603,035
- ----------------------------------------------------------------
End of period $23,235,578 $24,308,608 $62,585,461
$45,774,519
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Undistributed (overdistributed) net investment income $1,450,831 $13,793
$356,464
($2,025,132)
</TABLE>
See accompanying Notes to Financial Statements.
62
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
LIFESPAN LIFESPAN
DIVERSIFIED LIFESPAN CAPITAL
INCOME BALANCED
APPRECIATION
PORTFOLIO PORTFOLIO
PORTFOLIO
- ------------------------------------------------------------------------------------
1996 1995(1) 1996 1995(1) 1996
1995(1)
<S> <C> <C> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $1,334,058 $347,542 $1,395,888 $349,522
$635,909
$147,012
Net realized gain (loss) 34,119 25,415 713,856 (186,996) 1,155,841
(215,118)
Net change in unrealized appreciation
or depreciation 218,964 802,958 3,132,282 1,904,703 3,269,866
1,836,590
- ------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,587,141 1,175,915 5,242,026 2,067,229
5,061,616
1,768,484
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (218,759) (337,106) (364,414) (359,324)
(278,560)
(163,733)
Distributions from net realized gain (30,626) -- -- -- --
--
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets
resulting from capital stock
transactions - Note 2 2,760,428 20,337,106 10,991,482 33,759,324
10,442,654
25,163,733
- ------------------------------------------------------------------------------------
NET ASSETS:
Total increase (decrease) 4,098,184 21,175,915 15,869,094 35,467,229
15,225,710
26,768,484
Beginning of period 21,175,915 -- 35,467,229 -- 26,768,484
--
- ------------------------------------------------------------------------------------
End of period $25,274,099 $21,175,915 $51,336,323 $35,467,229
$41,994,194
$26,768,484
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Undistributed (overdistributed)
net investment income $1,127,966 $10,436 $1,053,055 ($9,802)
$371,899
($16,721)
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
See accompanying Notes to Financial Statements.
63
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(1) 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.75 $1.51 $1.65 $1.56 $1.57
- -------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .07 .07 .06 .06 .07
Net realized and unrealized gain (loss) .11 .30 (.09) .20 .10
- -------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .18 .37 (.03) .26 .17
- -------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.07) (.06) (.06) (.07)
Distributions from net realized gain (.01) (.06) (.05) (.11) (.11)
- -------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.02) (.13) (.11) (.17) (.18)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $1.91 $1.75 $1.51 $1.65 $1.56
----------------------------------------------------
----------------------------------------------------
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 10.14% 24.66% (1.97)% 16.28%
10.21%
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $1,122 $994 $742 $610 $402
- -------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,058 $864(3) $687(3) $502(3) $345(3)
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.12% 4.48% 4.21% 3.90% 4.27%
Expenses 0.55% 0.59% 0.56% 0.60% 0.68%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 104.3% 62.3% 88.3% 161.6% 182.1%
Average brokerage commission rate(5) $0.0641 -- -- -- --
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
3. This information is not covered by audit opinion.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$1,029,361,054 and $895,368,455, respectively.
5. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
64
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(1) 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $2.53 $1.97 $2.08 $1.91 $1.87
- ----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .04 .04 .03 .04 .04
Net realized and unrealized gain (loss) .43 .71 (.04) .36 .19
- ----------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations .47 .75 (.01) .40 .23
- ----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.04) (.03) (.04) (.04)
Distributions from net realized gain (.01) (.15) (.07) (.19) (.15)
- ----------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.02) (.19) (.10) (.23) (.19)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.98 $2.53 $1.97 $2.08 $1.91
-------------------------------------------------------------
-------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 18.87% 38.06% (0.51)%
21.22% 12.36%
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $586,222 $405,935 $230,195 $165,775
$101,215
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $494,281 $303,193(3) $198,879(3) $131,292(3)
$85,003(3)
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.63% 2.01% 1.87% 2.30% 2.19%
Expenses 0.58% 0.66% 0.67% 0.69% 0.76%
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 82.5% 69.3% 97.3% 97.6% 136.1%
Average brokerage commission rate(5) $0.0697 -- -- -- --
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
3. This information is not covered by audit opinion.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$425,023,373 and $361,436,894, respectively.
5. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
65
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995 1994 1993 1992(1)
- ------------------------------------------------------------------------------------------------------------------
- --
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.07 $0.95 $1.06 $1.01 $1.00
- ------------------------------------------------------------------------------------------------------------------
- --
Income (loss) from investment operations:
Net investment income .07 .06 .06 .04 .02
Net realized and unrealized gain (loss) (.05) .12 (.11) .07 .04
- ------------------------------------------------------------------------------------------------------------------
- --
Total income (loss) from investment
operations .02 .18 (.05) .11 .06
- ------------------------------------------------------------------------------------------------------------------
- --
Dividends and distributions to shareholders:
Dividends from net investment income -- (3) (.06) (.06) (.04) (.02)
Distributions from net realized gain -- -- -- (.02) (.03)
- ------------------------------------------------------------------------------------------------------------------
- --
Total dividends and distributions
to shareholders -- (.06) (.06) (.06) (.05)
- ------------------------------------------------------------------------------------------------------------------
- --
Net asset value, end of period $1.09 $1.07 $0.95 $1.06 $1.01
---------------------------------------------------------------------
---------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
- --
TOTAL RETURN, AT NET ASSET VALUE(4) 1.93% 18.91% (4.89)%
10.98% 6.61%
- ------------------------------------------------------------------------------------------------------------------
- --
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $23,236 $24,309 $18,784 $15,687
$7,634
- ------------------------------------------------------------------------------------------------------------------
- --
Average net assets (in thousands) $23,880 $23,157(5) $17,589(5) $11,421(5)
$3,780(5)
- ------------------------------------------------------------------------------------------------------------------
- --
Ratios to average net assets:
Net investment income 6.11% 6.08% 6.04% 5.13% 4.64%(6)
Expenses 0.62% 0.71% 0.85% 0.93% 1.20%(6)
- ------------------------------------------------------------------------------------------------------------------
- --
Portfolio turnover rate(7) 6.0% 54.7% 102.3% 178.2% 458.6%(6)
</TABLE>
1. For the period from May 13, 1992 (commencement of operations) to
December 31, 1992.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Less than $0.005 per share.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
5. This information is not covered by audit opinion.
6. Annualized.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases
and sales of investment securities (excluding short-term securities) for the
period ended December 31, 1996 were $425,023,373 and $361,436,894, respectively.
See accompanying Notes to Financial Statements.
66
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995 1994 1993
1992(1)
- ----------------------------------------------------------------------------------------------------------------
- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.15 $1.09 $1.09 $0.92
$1.00
- ----------------------------------------------------------------------------------------------------------------
- --------
Income (loss) from investment operations:
Net investment income (loss) .02 .03 (.01) .00 .01
Net realized and unrealized gain (loss) .13 .08 .03 .20 (.06)
- ----------------------------------------------------------------------------------------------------------------
- --------
Total income (loss) from investment
operations .15 .11 .02 .20 (.05)
- ----------------------------------------------------------------------------------------------------------------
- --------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.04) -- (.02) (.02)
Distributions from net realized gain -- (.01) (.02) (.01) (.01)
- ----------------------------------------------------------------------------------------------------------------
- --------
Total dividends and distributions
to shareholders (.01) (.05) (.02) (.03) (.03)
- ----------------------------------------------------------------------------------------------------------------
- --------
Net asset value, end of period $1.29 $1.15 $1.09 $1.09 $0.92
- ------------------------------------------------------------------
- ------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
- --------
TOTAL RETURN, AT NET ASSET VALUE(3) 13.26% 10.30% 1.44%
21.80%
(4.32)%
- ----------------------------------------------------------------------------------------------------------------
- --------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $62,585 $45,775 $31,603 $18,315
$10,493
- ----------------------------------------------------------------------------------------------------------------
- --------
Average net assets (in thousands) $56,893 $37,474(4) $29,133(4)
$13,328(4) $
9,973(4)
- ----------------------------------------------------------------------------------------------------------------
- --------
Ratios to average net assets:
Net investment income 0.76% 1.61% (1.85)% (0.31)%
1.63%(5)
Expenses 1.21% 1.26% 1.28% 1.50%
1.50%(5)
- ----------------------------------------------------------------------------------------------------------------
- --------
Portfolio turnover rate(6) 53.7% 85.1% 76.5% 57.4%
206.7%(5)
Average brokerage commission rate(7) $0.0019 -- -- -- --
</TABLE>
1. For the period from May 13, 1992 (commencement of operations) to December
31, 1992.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding short-
term securities) for the period ended December 31, 1996 were $44,150,822 and
$28,819,480, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
67
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.04 $1.00
- ------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .06 .02
Net realized and unrealized gain .01 .04
- ------------------------------------------------------------------------------------------------
Total income from investment
operations .07 .06
- ------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.02)
Distributions from net realized gain -- --
- ------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.02)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $1.10 $1.04
-----------------------------------------
-----------------------------------------
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 6.93% 5.69%
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,274 $21,176
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $22,854 $20,364 (4)
- ------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.84% 5.11%(5)
Expenses 1.07% 1.50%(5)
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 80.4% 41.2%(5)
Average brokerage commission rate(7) $0.0678 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods of less than one full year.
Total return information does not reflect expenses that apply at the separate
account level or to related insurance products. Inclusion of these charges
would reduce the total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended December 31, 1996 were
$19,927,166 and $16,872,227, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
68
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.05 $1.00
- ----------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .03 .01
Net realized and unrealized gain .11 .05
- ----------------------------------------------------------------------------------------------------------
Total income from investment
operations .14 .06
- ----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.01)
- ----------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.01)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.18 $1.05
-------------------------------------------------
-------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 13.38%
6.08%
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $51,336 $35,467
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $41,847 $33,925 (4)
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.34% 3.08%(5)
Expenses 1.17% 1.50%(5)
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 69.7% 39.7%(5)
Average brokerage commission rate(7) $0.0025 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases
and sales of investment securities (excluding short-term securities) for the
period ended December 31, 1996 were $34,475,999 and $26,945,206, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
69
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
FINANCIAL HIGHLIGHTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996(2) 1995(1)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.06 $1.00
- ---------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .02 .01
Net realized and unrealized gain .17 .06
- ---------------------------------------------------------------------------------------------------------
Total income from investment
operations .19 .07
- ---------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.01)
Distributions from net realized gain -- --
- ---------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.01) (.01)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.24 $1.06
-----------------------------------------------
-----------------------------------------------
- ---------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 17.97%
6.65%
- ---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $41,994 $26,768
- ---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $33,109 $25,460 (4)
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.92% 1.73%(5)
Expenses 1.30% 1.50%(5)
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 70.7% 38.7%(5)
Average brokerage commission rate(7) $0.0028 --
</TABLE>
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. On March 1, 1996, OppenheimerFunds, Inc. became the investment adviser to
the Fund.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
4. This information is not covered by audit opinion.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended December 31, 1996 were $28,033,224 and $21,163,850,
respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
70
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Total Return Portfolio (the Fund), is a series of Panorama Series Fund, Inc.
(the Company) which is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management investment company. The
Fund's investment objective is to seek maximum total investment return
(including both capital appreciation and income) principally by allocating
its assets among stocks, corporate bonds, U.S. government securities and
money market instruments according to changing market conditions. Until May
1, 1996, the Company was named Connecticut Mutual Financial Services Series
Fund I, Inc. On January 27, 1996, the policyholders of Connecticut Mutual
Life Insurance Company (CML) approved a merger of CML with Massachusetts
Mutual Life Insurance Company (MML). In connection with this change,
effective March 1, 1996, OppenheimerFunds, Inc. (the Manager) became the
adviser of Panorama Series Fund, Inc. Shares of the Fund are sold only to
separate accounts of life insurance companies, a majority of such shares are
held by separate accounts of MML, an affiliate of the investment adviser.
The following is a summary of significant accounting policies consistently
followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization
to maturity of any premium or discount.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the Fund are maintained in U.S. dollars. Prices
of securities purchased that are denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts
related to the purchase and sale of securities and investment income are
translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase.
If the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund.
71
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS (continued)
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect an increase in undistributed net investment
income of $162,044. Accumulated net realized gain was decreased by the same
amount.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 950 million shares of $0.001 par value capital
stock. Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995
------------------------------------------------------------
Shares Amount Shares Amount
---------- ---------- ----------- ----------------
Sold 93,916,426 $ 168,995,348 92,416,138 $157,945,504 (1)
Dividends and
distributions
reinvested 5,232,785 9,329,203 39,845,299 69,666,729 (1)
Redeemed (79,306,418) (143,389,085) (55,425,167) (94,329,216)(1)
------------ ------------- ------------ ---------------
Net increase 19,842,793 $ 34,935,466 76,836,270 $133,283,017
------------ -------------- ------------ ----------------
------------ -------------- ------------ ----------------
1. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$77,874,740 was composed of gross appreciation of $83,407,872, and gross
depreciation of $5,533,132.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.625% of the first
$600 million of net assets and 0.45% of net assets in excess of $600 million.
Prior to March 1, 1996, management fees were paid to G.R. Phelps & Co. (the
former Manager), a wholly owned subsidiary of MML. The Manager has agreed to
reimburse the Fund if aggregate expenses (with specified exceptions) exceed
the most stringent applicable regulatory limit on Fund expenses. The Manager
acts as the accounting agent for the Fund at an annual fee of $15,000, plus
out-of-pocket costs and expenses reasonably incurred.
72
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Growth Portfolio (the Fund), is a series of Panorama Series Fund, Inc. (the
Company) which is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The
Fund's investment objective is to seek long-term growth of capital by
investing primarily in common stocks. Until May 1, 1996, the Company was
named Connecticut Mutual Financial Services Series Fund I, Inc. On January
27, 1996, the policyholders of Connecticut Mutual Life Insurance Company
(CML) approved a merger of CML with Massachusetts Mutual Life Insurance
Company (MML). In connection with this change, effective March 1, 1996,
OppenheimerFunds, Inc. (the Manager) became the adviser of Panorama Series
Fund, Inc. Shares of the Fund are sold only to separate accounts of life
insurance companies, a majority of such shares are held by separate accounts
of MML, an affiliate of the investment adviser. The following is a summary
of significant accounting policies consistently followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income and net realized gain may differ for financial
statement and tax purposes. The character of the distributions made during
the year from net investment income or net realized gains may differ from
their ultimate characterization for federal income tax purposes. Also, due
to timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain (loss)
was recorded by the Fund.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
73
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SHARES OF CAPITAL STOCK
The Fund has authorized 350 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 55,608,996 $149,864,357 47,879,137 $113,288,953(1)
Dividends and
distributions
reinvested 1,696,733 4,511,263 11,118,683 27,908,230(1)
Redeemed (21,454,970) (57,911,119) (14,920,252) (34,934,671)(1)
------------ ------------- ------------ ----------------
Net increase 35,850,759 $ 96,464,501 44,077,568 $106,262,512
------------ ------------- ------------ ----------------
------------ ------------- ------------ ----------------
1. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$114,242,963 was composed of gross appreciation of $116,270,104, and gross
depreciation of $2,027,141.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.625% of the first
$300 million of net assets, 0.50% of the next $100 million and 0.45% of net
assets in excess of $400 million. Prior to March 1, 1996, management fees
were paid to G.R. Phelps & Co. (the former Manager). The Manager has agreed
to reimburse the Fund if aggregate expenses (with specified exceptions)
exceed the most stringent applicable regulatory limit on Fund expenses. The
Manager acts as the accounting agent for the Fund at an annual fee of
$15,000, plus out-of-pocket costs and expenses reasonably incurred.
74
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Government Securities Portfolio (the Fund), is a series of Panorama Series
Fund, Inc. (the Company) which is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek a high level of current
income with a high degree of safety of principal by investing primarily in
U.S. Government securities and U.S. Government related securities. Until May
1, 1996, the Company was named Connecticut Mutual Financial Services Series
Fund I, Inc. On January 27, 1996, the policyholders of Connecticut Mutual
Life Insurance Company (CML) approved a merger of CML with Massachusetts
Mutual Life Insurance Company (MML). In connection with this change,
effective March 1, 1996, OppenheimerFunds, Inc. (the Manager) became the
adviser of Panorama Series Fund, Inc. Shares of the Fund are sold only to
separate accounts of life insurance companies, a majority of such shares are
held by separate accounts of MML, an affiliate of the investment adviser.
The following is a summary of significant accounting policies consistently
followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
At December 31, 1996, the Fund had available for federal income tax purposes
an unused capital loss carryover of approximately $360,000, which expires
between 2002 and 2003.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions made
during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. Also,
due to timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain (loss)
was recorded by the Fund.
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect a decrease in undistributed net investment
income of $8,607. Accumulated net realized loss was decreased by the same
amount.
75
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Discount on securities purchased is
amortized over the life of the respective securities, in accordance with
federal income tax requirements. Realized gains and losses on investments
and unrealized appreciation and depreciation are determined on an identified
cost basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 150 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995
--------------------------------------------------------------
Shares Amount Shares Amount
--------------------------------------------------------------
Sold 3,228,090 $ 3,411,359 5,051,043 $5,332,595 (1)
Dividends and
distributions
reinvested 13,298 13,793 1,202,560 1,281,570 (1)
Redeemed (4,728,604) (4,998,787) (3,205,837) (3,331,875)(1)
----------- ----------- ----------- --------------
Net increase
(decrease) (1,487,216) $(1,573,635) 3,047,766 $3,282,290
----------- ------------ ----------- --------------
----------- ------------ ----------- --------------
1. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized depreciation on investments of $32,315
was composed of gross appreciation of $281,327 and gross depreciation of
$313,642.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.525% of the first
$300 million of net assets, 0.50% of the next $100 million and 0.45% of net
assets in excess of $400 million. The Manager has agreed to reimburse the
Fund if aggregate expenses (with specified exceptions) exceed the most
stringent applicable regulatory limit on Fund expenses. Effective January 1,
1997, the Manager will act as the accounting agent for the Fund at an annual
fee of $15,000, plus out-of-pocket costs and expenses reasonably incurred.
76
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
International Equity Portfolio (the Fund), is a series of Panorama Series
Fund, Inc. (the Company) which is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek long-term growth of
capital by investing primarily in equity securities. Until May 1, 1996, the
Company was named Connecticut Mutual Financial Services Series Fund I, Inc.
On January 27, 1996, the policyholders of Connecticut Mutual Life Insurance
Company (CML) approved a merger of CML with Massachusetts Mutual Life
Insurance Company (MML). In connection with this change, effective March 1,
1996, OppenheimerFunds, Inc. (the Manager) became the adviser of Panorama
Series Fund, Inc. Shares of the Fund are sold only to separate accounts of
life insurance companies, a majority of such shares are held by separate
accounts of MML, an affiliate of the investment adviser. The following is a
summary of significant accounting policies consistently followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Forward foreign currency exchange
contracts are valued based on the closing prices of the forward currency
contract rates in the London foreign exchange markets on a daily basis as
provided by a reliable bank or dealer.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the Fund are maintained in U.S. dollars. Prices of
securities purchased that are denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts
related to the purchase and sale of securities and investment income are
translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund.
77
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS (continued)
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect a decrease in paid-in capital of $930,051,
an increase in undistributed net investment income of $2,505,556, and a
increase in accumulated net realized loss on investments of $1,575,505.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 150 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995
--------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 17,318,472 $ 21,135,395 13,867,469 $15,578,087 (1)
Dividends and
distributions
reinvested 447,471 554,916 1,701,124 1,953,318 (1)
Redeemed (8,889,447) (11,097,041) (4,839,804) (5,442,997)(1)
----------- ------------ ----------- --------------
Net increase 8,866,496 $ 10,593,270 10,728,789 $12,088,408
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
1. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$8,362,401 was composed of gross appreciation of $10,605,136 and gross
depreciation of $2,242,735.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 1.00% of the first
$250 million of net assets and 0.90% of net assets in excess of $250 million.
Prior to March 1, 1996, management fees were paid to G.R. Phelps & Co. (the
former Manager). The Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most stringent applicable
regulatory limit on Fund expenses. The Manager acts as the accounting agent
for the Fund at an annual fee of $15,000, plus out-of-pocket costs and
expenses reasonably incurred.
The Manager has entered into a sub-advisory agreement with Babson-Stewart
Ivory International (the Sub-Adviser) to assist in the selection of portfolio
investments for the components of the Fund. For these services, the Manager
pays Babson-Stewart Ivory International negotiated fees.
78
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
LifeSpan Diversified Income Portfolio (the Fund), is a series of Panorama
Series Fund, Inc. (the Company) which is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek high current
income, with opportunities for capital appreciation by investing in a
strategically allocated portfolio consisting primarily of bonds. Until May
1, 1996, the Company was named Connecticut Mutual Financial Services Series
Fund I, Inc. On January 27, 1996, the policyholders of Connecticut Mutual
Life Insurance Company (CML) approved a merger of CML with Massachusetts
Mutual Life Insurance Company (MML). In connection with this change,
effective March 1, 1996, OppenheimerFunds, Inc. (the Manager) became the
adviser of Panorama Series Fund, Inc. Shares of the Fund are sold only to
separate accounts of life insurance companies, a majority of such shares are
held by separate accounts of MML, an affiliate of the investment adviser.
The following is a summary of significant accounting policies consistently
followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Forward foreign currency exchange
contracts are valued based on the closing prices of the forward currency
contract rates in the London foreign exchange markets on a daily basis as
provided by a reliable bank or dealer.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the Fund are maintained in U.S. dollars. Prices of
securities purchased that are denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts
related to the purchase and sale of securities and investment income are
translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund.
79
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS (continued)
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect an increase in undistributed net investment
income of $2,231. Accumulated net realized gain was decreased by the same
amount.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 200 million shares of $0.001 par value of capital
stock. Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995(1)
-------------------------------------------------------------
Shares Amount Shares Amount
---------- ----------- ----------- -------------
Sold 2,767,203 $2,918,049 20,000,000 $20,000,000(2)
Dividends and
distributions
reinvested 239,497 249,385 324,034 337,106(2)
Redeemed (383,462) (407,006) -- --
----------- ------------ ----------- -------------
Net increase 2,623,238 $2,760,428 20,324,034 $20,337,106
----------- ------------ ----------- --------------
----------- ------------ ----------- --------------
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$1,021,923 was composed of gross appreciation of $1,319,572, and gross
depreciation of $297,649.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.75% of the first
$250 million of net assets and 0.65% of net assets in excess of $250 million.
Prior to March 1, 1996, management fees were paid to G.R. Phelps & Co. (the
former Manager). The Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most stringent applicable
regulatory limit on Fund expenses. The Manager acts as the accounting agent
for the Fund at an annual fee of $15,000, plus out-of-pocket costs and
expenses reasonably incurred.
The Manager has entered into a sub-advisory agreement with BEA Associates
(the Sub-Adviser) to assist in the selection of portfolio investments for the
components of the Fund. For these services, the Manager pays BEA Associates
negotiated fees.
80
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
LifeSpan Balanced Portfolio (the Fund), is a series of Panorama Series Fund,
Inc. (the Company) which is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment company.
The Fund's investment objective is to seek a blend of capital appreciation
and income by investing in a strategically allocated portfolio of stocks and
bonds with a slightly stronger emphasis on stocks. Until May 1, 1996, the
Company was named Connecticut Mutual Financial Services Series Fund I, Inc.
On January 27, 1996, the policyholders of Connecticut Mutual Life Insurance
Company (CML) approved a merger of CML with Massachusetts Mutual Life
Insurance Company (MML). In connection with this change, effective March 1,
1996, OppenheimerFunds, Inc. (the Manager) became the adviser of Panorama
Series Fund, Inc. Shares of the Fund are sold only to separate accounts of
life insurance companies, a majority of such shares are held by separate
accounts of MML, an affiliate of the investment adviser. The following is a
summary of significant accounting policies consistently followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the Fund are maintained in U.S. dollars. Prices of
securities purchased that are denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts
related to the purchase and sale of securities and investment income are
translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund.
81
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS (continued)
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect a decrease in paid-in capital of $20,887,
an increase in undistributed net investment income of $31,383, and a decrease
in accumulated net realized gain on investments of $10,496.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 200 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995 (1)
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 11,771,412 $13,270,683 33,400,000 $33,400,000(2)
Dividends and
distributions
reinvested 324,756 364,414 343,194 359,324(2)
Redeemed (2,368,019) (2,643,615) -- --
------------ ------------ ---------- --------------
Net increase 9,728,149 $10,991,482 33,743,194 $33,759,324
------------ ------------ ---------- --------------
------------ ------------ ---------- --------------
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$5,036,956 was composed of gross appreciation of $5,927,588, and gross
depreciation of $890,632.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.85% of the first
$250 million of net assets and 0.75% of net assets in excess of $250 million.
Prior to March 1, 1996, management fees were paid to G.R. Phelps & Co. (the
former Manager). The Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most stringent applicable
regulatory limit on Fund expenses. The Manager acts as the accounting agent
for the Fund at an annual fee of $15,000, plus out-of-pocket costs and
expenses reasonably incurred.
The Manager has entered into sub-advisory agreements with three Sub-Advisers
to assist in the selection of portfolio investments for the components of the
Fund. For those services, the Manager pays Babson-Stewart Ivory
International, BEA Associates and Pilgrim Baxter & Associates (the Sub-
Advisers) negotiated fees.
82
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
LifeSpan Capital Appreciation Portfolio (the Fund), is a series of Panorama
Series Fund, Inc. (the Company) which is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek long-term
capital appreciation by investing in a strategically allocated portfolio
consisting primarily of stocks. Until May 1, 1996, the Company was named
Connecticut Mutual Financial Services Series Fund I, Inc. On January 27,
1996, the policyholders of Connecticut Mutual Life Insurance Company (CML)
approved a merger of CML with Massachusetts Mutual Life Insurance Company
(MML). In connection with this change, effective March 1, 1996,
OppenheimerFunds, Inc. (the Manager) became the adviser of Panorama Series
Fund, Inc. Shares of the Fund are sold only to separate accounts of life
insurance companies, a majority of such shares are held by separate accounts
of MML, an affiliate of the investment adviser. The following is a summary
of significant accounting policies consistently followed by the Fund.
INVESTMENT VALUATION.
Portfolio securities are valued at the close of the New York Stock Exchange
on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or the
last sale price on the prior trading day. Long-term and short-term "non-
money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued
by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the
quotes is reliable and that the quotes reflect current market value, or are
valued under consistently applied procedures established by the Board of
Directors to determine fair value in good faith. Short-term "money market
type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the Fund are maintained in U.S. dollars. Prices of
securities purchased that are denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts
related to the purchase and sale of securities and investment income are
translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
REPURCHASE AGREEMENTS.
The Fund requires the custodian to take possession, to have legally
segregated in the Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Fund may be delayed or limited.
FEDERAL TAXES.
The Company intends for the Fund to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gain (loss) was recorded by the Fund.
83
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS (continued)
During the year ended December 31, 1996, the Fund adjusted the classification
of distributions to shareholders to reflect the differences between financial
statement amounts and distributions determined in accordance with income tax
regulations. Accordingly, during the year ended December 31, 1996, amounts
have been reclassified to reflect a decrease in paid-in capital of $20,887,
an increase in undistributed net investment income of $31,271, and a decrease
in accumulated net realized gain on investments of $10,384.
OTHER.
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis,
which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
2. SHARES OF CAPITAL STOCK
The Fund has authorized 200 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended Year Ended
December 31, 1996 December 31, 1995(1)
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 12,599,280 $14,877,614 25,000,000 $25,000,000(2)
Dividends and
distributions
reinvested 236,570 278,563 154,663 163,733(2)
Redeemed (4,035,039) (4,713,523) -- --
-------------- ------------ ---------- ------------
Net increase 8,800,811 $10,442,654 25,154,663 $25,163,733
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
1. For the period from September 1, 1995 (commencement of operations) to
December 31, 1995.
2. This information is not covered by audit opinion.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments of
$5,106,412 was composed of gross appreciation of $5,887,486, and gross
depreciation of $781,074.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund. The annual fees are 0.85% of the first
$250 million of net assets and 0.75% of net assets in excess of $250 million.
Prior to March 1, 1996, management fees were paid to G.R. Phelps & Co. (the
former Manager). The Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most stringent applicable
regulatory limit on Fund expenses. The Manager acts as the accounting agent
for the Fund at an annual fee of $15,000, plus out-of-pocket costs and
expenses reasonably incurred.
The Manager has entered into sub-advisory agreements with three Sub-Advisers
to assist in the selection of portfolio investments for the components of the
Fund. For these services, the Manager pays Babson-Stewart Ivory
International, BEA Associates and Pilgrim Baxter & Associates (the
Sub-Advisers) negotiated fees.
84
<PAGE>
Appendix A
Industry Classifications
Aerospace/Defense
Air Transportation
Auto Parts Distribution
Automotive
Bank Holding Companies
Banks
Beverages
Broadcasting
Broker-Dealers
Building Materials
Cable Television
Chemicals
Commercial Finance
Computer Hardware
Computer Software
Conglomerates
Consumer Finance
Containers
Convenience Stores
Department Stores
Diversified Financial
Diversified Media
Drug Stores
Drug Wholesalers
Durable Household Goods
Education
Electric Utilities
Electrical Equipment
Electronics
Energy Services & Producers
Entertainment/Film
Environmental
Food
Gas Utilities*
Gold
Health Care/Drugs
Health Care/Supplies & Services
Homebuilders/Real Estate
Hotel/Gaming
Industrial Services
Insurance
Leasing & Factoring
Leisure
Manufacturing
Metals/Mining
Nondurable Household Goods
Oil - Integrated
Paper
Publishing/Printing
Railroads
Restaurants
Savings & Loans
Shipping
Special Purpose Financial
Specialty Retailing
Steel
Supermarkets
Telecommunications - Technology
Telephone - Utility
Textile/Apparel
Tobacco
Toys
Trucking
___________________
*For purposes of a Portfolio's investment policy not to concentrate
in securities of issuers in the same industry, utilities are divided
into "industries" according to their services (e.g., gas utilities,
gas transmission utilities, electric utilities and telephone
utilities are each considered a separate industry).
<PAGE>
Panorama Series Fund, Inc.
6803 South Tucson Way
Englewood, Colorado 80112
1-800-525-7048
Investment Advisor
OppenheimerFunds, Inc.
Two World Trade Center
New York, New York 10048-0203
Transfer Agent
OppenheimerFunds Services
P.O. Box 5270
Denver, Colorado 80217
1-800-525-7048
Custodian of Portfolio Securities
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Independent Auditors
Deloitte & Touche, LLP
555 Seventeenth Street
Denver, Colorado 80202
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
1600 Broadway
Denver, Colorado 80202
PANORAMA SERIES FUND, INC.
PART C - - OTHER INFORMATION
ITEM 24. Financial Statements and Exhibits.
(a) Financial Statements:
(1) Financial Highlights
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) LifeSpan Capital Appreciation Portfolio - Filed
herewith.
(v) LifeSpan Balanced Portfolio - Filed herewith.
(vi) for LifeSpan Diversified Income - Filed
herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(2) Independent Auditors' Report
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(3) Statements of Investment
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(4) Statement of Net Assets and Liabilities
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(5) Statement of Operations
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(6) Statement of Changes in Net Assets
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
<PAGE>
(7) Notes to Financial Statements
(i) for Total Return Portfolio - Filed herewith.
(ii) for Growth Portfolio - Filed herewith.
(iii) for International Equity Portfolio - Filed
herewith.
(iv) for LifeSpan Capital Appreciation Portfolio -
Filed herewith.
(v) for LifeSpan Balanced Portfolio - Filed
herewith.
(vi) for LifeSpan Diversified Portfolio Income -
Filed herewith.
(vii) for Government Securities Portfolio - Filed
herewith.
(b) Exhibits
1. Amended and Restated Articles of Incorporation dated
May, 1995: Filed with Registrant's Post-Effective Amendment NO. 23,
3/1/96, and Incorporated herein by reference.
1.1 Articles Supplementary dated August 29, 1996: Filed
herewith.
2. By-Laws: Filed with Registrant's Post-Effective
Amendment No. 23, 3/1/96, and incorporated herein by reference.
3. Not Applicable
4. Not Applicable
5. Investment Advisory Agreement between the Registrant,
on behalf of Total Return Portfolio: Filed with Registrant's Post-
Effective Amendment No. 24, 4/30/96, and incorporated herein by
reference.
5.1 Investment Subadvisory Agreement between
OppenheimerFunds, Inc. and Pilgrim, Baxter & Associates, Ltd. (for
LifeSpan Balanced Portfolio) and schedule of omitted substantially
similar documents: Filed with Registrant's Post-Effective Amendment
No. 24, 4/30/96, and incorporated herein by reference.
5.2 Investment Subadvisory Agreement between
OppenheimerFunds, Inc. and BEA Associates (for LifeSpan Capital
Appreciation Portfolio) and schedule of omitted substantially
similar documents: Filed with Registrant's Post-Effective Amendment
No. 24, 4/30/96, and incorporated herein by reference.
5.3 Investment Subadvisory Agreement between
OppenheimerFunds, Inc. and Babson-Stewart Ivory International (for
LifeSpan Balanced Portfolio)and schedule of omitted substantially
similar documents: Filed with Registrant's Post-Effective Amendment
No. 24, 4/30/96, and incorporated herein by reference.
6. Not Applicable
7. Not Applicable
8. Master Custodian Agreement between Registrant, on
behalf of each series of the Registrant, and State Street Bank and
Trust Company: Filed with Registrant's Post-Effective Amendment No.
23, 3/1/96, and incorporated herein by reference.
8.1 Amendment to Custodian Agreement between Registrant
and State Street Bank and Trust Company: Filed with Registrant's
Post-Effective Amendments No. 23, 3/1/96, and incorporated herein by
reference.
9. Service Contract between Registrant and
OppenheimerFunds Services: Filed with Registrant's Post-Effective
Amendments No.24, 4/30/96, and incorporated herein by reference.
10. Opinion and Consent of Counsel dated: Filed herewith.
11. Consent of Independent Auditors: Filed herewith.
12. Not applicable.
13. Not Applicable.
14. Not Applicable.
15. Not Applicable
16. Performance Data Computation Schedule: Filed
herewith.
17(a) Financial Data Schedule for Total Return Portfolio:
Filed herewith.
17(b) Financial Data Schedule for Growth Portfolio: Filed
herewith.
17(c) Financial Data Schedule for International Equity
Portfolio: Filed herewith.
17(d) Financial Data Schedule for LifeSpan Capital
Appreciation Portfolio: Filed herewith.
17(e) Financial Data Schedule for LifeSpan Balanced
Portfolio: Filed herewith.
17(f) Financial Data Schedule for LifeSpan Diversified
Income Portfolio: Filed herewith.
17(g) Financial Data Schedule for Government Securities
Portfolio: Filed herewith.
--Powers of Attorney - Filed herewith. (James C. Swain,
George C. Bowen, Robert G. Avis, William A. Baker, Charles Conrad,
Jr., Sam Freedman, Raymond J. Kalinowski, C. Howard Kast, Robert M.
Kirchner, Ned M. Steel).
18. Not Applicable
ITEM 25. Persons controlled by Or Under Common Control with
Registrant.
None
ITEM 26. Number of Holders of Securities.
As of April 1, 1997 all outstanding shares of the Portfolios then
existing were owned by Mass Mutual Life Insurance Company or its
affiliates.
ITEM 27. Indemnification.
Reference is made to Article VI of Registrant's By-laws filed
with Post-Effective Amendment Number 23.
Item 28. Business and Other Connections of Investment Adviser
- -------- ----------------------------------------------------
(a) OppenheimerFunds, Inc. is the investment adviser of the
Registrant; it and certain subsidiaries and affiliates act in the
same capacity to other registered investment companies as described
in Parts A and B hereof and listed in Item 28(b) below.
(b) There is set forth below information as to any other
business, profession, vocation or employment of a substantial nature
in which each officer and director of OppenheimerFunds, Inc. is, or
at any time during the past two fiscal years has been, engaged for
his/her own account or in the capacity of director, officer,
employee, partner or trustee.
<TABLE>
<CAPTION>
Name & Current Position Other Business and Connections with
OppenheimerFunds, Inc. During the Past Two Years
- --------------------------- ------------------------------
<S> <C>
Mark J.P. Anson,
Vice President Vice President of Oppenheimer Real Asset
Management, Inc. ("ORAMI"); formerly Vice
President of Equity Derivatives at Salomon
Brothers, Inc.
Peter M. Antos,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; a Chartered
Financial Analyst; Senior Vice President of
HarbourView; prior to March, 1996 he was the
senior equity portfolio manager for the
Panorama Series Fund, Inc. (the "Company")
and other mutual funds and pension funds
managed by G.R. Phelps & Co. Inc. ("G.R.
Phelps"), the Company's former investment
adviser, which was a subsidiary of
Connecticut Mutual Life Insurance Company;
was also responsible for managing the common
stock department and common stock investments
of Connecticut Mutual Life Insurance Co.
Lawrence Apolito,
Vice President None.
Victor Babin,
Senior Vice President None.
Bruce Bartlett,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; formerly a Vice
President and Senior Portfolio Manager at
First of America Investment Corp.
Ellen Batt,
Assistant Vice President None
Kathleen Beichert,
Assistant Vice President Formerly employed by Smith Barney, Inc.
David Bernard,
Vice President Previously a Regional Sales Director for
Retirement Plan Services at Charles Schwab &
Co., Inc.
Rajeev Bhaman,
Assistant Vice President Formerly Vice President of Asian Equities for
Barclays de Zoete Wedd, Inc.
Robert J. Bishop,
Vice President Assistant Treasurer of the Oppenheimer Funds
(listed below); previously a Fund Controller
for OppenheimerFunds, Inc. (the "Manager").
George Bowen,
Senior Vice President & Treasurer Treasurer of the New York-based Oppenheimer
Funds; Vice President, Assistant Secretary
and Treasurer of the Denver-based Oppenheimer
Funds. Vice President and Treasurer of
OppenheimerFunds Distributor, Inc. (the
"Distributor") and HarbourView Asset
Management Corporation ("HarbourView"), an
investment adviser subsidiary of the Manager;
Senior Vice President, Treasurer, Assistant
Secretary and a director of Centennial Asset
Management Corporation ("Centennial"), an
investment adviser subsidiary of the Manager;
Vice President, Treasurer and Secretary of
Shareholder Services, Inc. ("SSI") and
Shareholder Financial Services, Inc.
("SFSI"), transfer agent subsidiaries of the
Manager; Director, Treasurer and Chief
Executive Officer of MultiSource Services,
Inc.; Vice President and Treasurer of
Oppenheimer Real Asset Management, Inc.;
President, Treasurer and Director of
Centennial Capital Corporation; Vice
President and Treasurer of Main Street
Advisers.
Scott Brooks,
Assistant Vice President None.
Susan Burton,
Assistant Vice President Previously a Director of Educational
Services for H.D. Vest Investment
Securities, Inc.
Michael A. Carbuto,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; Vice President
of Centennial.
Ruxandra Chivu,
Assistant Vice President None.
O. Leonard Darling,
Executive Vice President Formerly Co-Director of Fixed Income for
State Street Research & Management Co.
Robert A. Densen,
Senior Vice President None.
Sheri Devereux,
Assistant Vice President None.
Robert Doll, Jr.,
Executive Vice President and
Director An officer and/or portfolio manager of
certain Oppenheimer funds.
John Doney,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Andrew J. Donohue,
Executive Vice President,
General Counsel and Director Secretary of the New York-
based Oppenheimer Funds; Vice President
and Secretary of the Denver-based
Oppenheimer Funds; Secretary of the
Oppenheimer Quest and Oppenheimer
Rochester Funds; Executive Vice President,
Director and General Counsel of the
Distributor; President and a Director of
Centennial; Chief Legal Officer and a
Director of MultiSource Services, Inc.;
President and a Director of Oppenheimer
Real Asset Management, Inc.; Executive
Vice President, General Counsel and
Director of SFSI and SSI; formerly Senior
Vice President and Associate General
Counsel of the Manager and the
Distributor.
George Evans,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Scott Fairer,
Vice President Assistant Treasurer of the New York-based
and Denver-based Oppenheimer funds.
Leslie A. Falconio,
Assistant Vice President None.
Katherine P. Feld,
Vice President and Secretary Vice President and Secretary of
OppenheimerFunds Distributor, Inc.;
Secretary of HarbourView Asset Management
Corporation, MultiSource Services, Inc.
and Centennial Asset Management
Corporation; Secretary, Vice President and
Director of Centennial Capital
Corporation; Vice President and Secretary
of ORAMI.
Ronald H. Fielding,
Senior Vice President; Chairman:
Rochester Division An officer, Director and/or portfolio
manager of certain Oppenheimer funds.
Formerly Chairman of the Board and
Director of Rochester Fund Distributors,
Inc. ("RFD"), President and Director of
Fielding Management Company, Inc. ("FMC"),
President and Director of Rochester
Capital Advisors, Inc. ("RCAI"), Managing
Partner of Rochester Capital Advisors,
L.P., President and Director of Rochester
Fund Services, Inc. ("RFS"), President and
Director of Rochester Tax Managed Fund,
Inc.
John Fortuna,
Vice President None.
Patricia Foster,
Vice President Formerly she held the following positions:
An officer of certain Oppenheimer funds;
Secretary and General Counsel of Rochester
Capital Advisors, L.P. and Secretary of
Rochester Tax Managed Fund, Inc.
Jennifer Foxson,
Assistant Vice President None.
Paula C. Gabriele,
Executive Vice President Formerly Managing Director (1990-1996) for
Bankers Trust Co.
Robert G. Galli,
Vice Chairman Trustee of the New York-based Oppenheimer
Funds; Vice President and Counsel of OAC;
formerly he held the following positions:
Vice President and a director of
HarbourView and Centennial, a director of
SFSI and SSI, an officer of other
Oppenheimer Funds.
Linda Gardner,
Assistant Vice President None.
Jill Glazerman, None.
Assistant Vice President
Ginger Gonzalez,
Vice President, Director of
Marketing Communications Formerly 1st Vice President / Director of
Graphic and Print Communications for
Shearson Lehman Brothers.
Mildred Gottlieb,
Assistant Vice President Formerly served as a Strategy Consultant
for the Private Client Division of Merrill
Lynch.
Robert Grill,
Vice President Formerly Marketing Vice President for
Bankers Trust Company (1993-1996);
Steering Committee Member, Subcommittee
Chairman for American Savings Education
Council (1995-1996).
Caryn Halbrecht,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; formerly Vice
President of Fixed Income Portfolio
Management at Bankers Trust.
Glenna Hale,
Director of Investor Marketing Formerly Vice President (1994-1997) of
Retirement Plans Services for
OppenheimerFunds Services.
Thomas B. Hayes,
Assistant Vice President None.
Barbara Hennigar,
Executive Vice President and
President and Chief Executive
Officer of OppenheimerFunds
Services, a division of the
Manager President and Director of SFSI; President
and Chief Executive Officer of SSI.
Dorothy Hirshman,
Assistant Vice President None.
Alan Hoden,
Vice President None.
Merryl Hoffman,
Vice President None.
Scott T. Huebl,
Assistant Vice President None.
Richard Hymes,
Assistant Vice President None.
Jane Ingalls,
Assistant Vice President Formerly a Senior Associate with Robinson,
Lake/Sawyer Miller.
Ronald Jamison,
Vice President Formerly Vice President
and Associate General Counsel at
Prudential Securities, Inc.
Frank Jennings,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly a
Managing Director of Global Equities at
Paine Webber's Mitchell Hutchins division.
Heidi Kagan,
Assistant Vice President None.
Thomas W. Keffer,
Vice President Formerly Senior Managing Director of Van
Eck Global.
Avram Kornberg,
Vice President Formerly a Vice President with Bankers
Trust.
Joseph Krist,
Assistant Vice President None.
Paul LaRocco,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly a
Securities Analyst for Columbus Circle
Investors.
Michael Levine,
Assistant Vice President None.
Shanquan Li,
Assistant Vice President Director of Board (since 2/96), Chinese
Finance Society; formerly Chairman (11/94-
2/96)), Chinese Finance Society; and
Director (6/94-6/95), Greater China
Business Networks.
Stephen F. Libera,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; a Chartered
Financial Analyst; a Vice President of
HarbourView; prior to March, 1996 he was
the senior bond portfolio manager for
Panorama Series Fund, Inc., other mutual
funds and pension accounts managed by G.R.
Phelps; was also responsible for managing
the public fixed-income securities
department at Connecticut Mutual Life
Insurance Co.
Mitchell J. Lindauer,
Vice President None.
David Mabry,
Assistant Vice President None.
Loretta McCarthy,
Executive Vice President None.
Bridget Macaskill,
President, Chief Executive Officer
and Director President, Director and Trustee of the New
York-based and the Denver-based
Oppenheimer funds; President and a
Director of OAC, HarbourView and
Oppenheimer Partnership Holdings, Inc.;
Director of ORAMI; Chairman and Director
of SSI; a Director of Oppenheimer Real
Asset Management, Inc.
Timothy Martin,
Assistant Vice President Formerly Vice President, Mortgage Trading,
at S.N. Phelps &
Co., Salomon Brothers, and Kidder Peabody.
Sally Marzouk,
Vice President None.
Michelle McCann,
Assistant Vice President Formerly Vice President, Quest for Value
Distributors, Oppenheimer Capital
Corporation.
Lisa Migan,
Assistant Vice President, None.
Robert J. Milnamow,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly a
Portfolio Manager with Phoenix Securities
Group.
Denis R. Molleur,
Vice President None.
Linda Moore,
Vice President Formerly Marketing Manager (July, 1995 -
November, 1996) for Chase Investment
Services Corp.
Kenneth Nadler,
Vice President None.
David Negri,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Barbara Niederbrach,
Assistant Vice President None.
Robert A. Nowaczyk,
Vice President None.
Gina M. Palmieri,
Assistant Vice President None.
Robert E. Patterson,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
John Pirie,
Assistant Vice President Formerly a Vice President with Cohane
Rafferty Securities, Inc.
Tilghman G. Pitts III,
Executive Vice President Chairman and Director of the Distributor.
Jane Putnam,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly Senior
Investment Officer and Portfolio Manager
with Chemical Bank.
Russell Read,
Vice President Consultant for Prudential Insurance on
behalf of the General Motors Pension Plan.
Thomas Reedy,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly a
Securities Analyst for the Manager.
David Robertson,
Vice President None.
Adam Rochlin,
Vice President Formerly a Product Manager for
Metropolitan Life Insurance Company.
Michael S. Rosen
Vice President; President:
Rochester Division An officer and/or portfolio manager of
certain Oppenheimer funds. Formerly Vice
President of RFS, President and Director
of RFD, Vice President and Director of
FMC, Vice President and director of RCAI,
General Partner of RCA, an officer and/or
portfolio manager of certain Oppenheimer
funds.
David Rosenberg,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Richard H. Rubinstein,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; formerly Vice
President and Portfolio Manager/Security
Analyst for Oppenheimer Capital Corp., an
investment adviser.
Lawrence Rudnick,
Assistant Vice President Formerly Vice President of Dollar Dry Dock
Bank.
James Ruff,
Executive Vice President None.
Valerie Sanders,
Vice President None.
Ellen Schoenfeld,
Assistant Vice President None.
Stephanie Seminara,
Vice President Formerly Vice President of Citicorp
Investment Services.
Diane Sobin,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; formerly a Vice
President and Senior Portfolio Manager for
Dean Witter InterCapital, Inc.
Richard A. Soper, None.
Assistant Vice President
Nancy Sperte,
Executive Vice President
None.
Donald W. Spiro,
Chairman Emeritus and Director Vice Chairman and Trustee of the New York-
based Oppenheimer Funds; formerly Chairman
of the Manager and the Distributor.
Arthur Steinmetz,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Ralph Stellmacher,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
John Stoma,
Senior Vice President,
Director Retirement Plans Formerly Vice President of U.S. Group
Pension Strategy and Marketing for
Manulife Financial.
Michael C. Strathearn,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; a Chartered
Financial Analyst; a Vice President of
HarbourView; prior to March, 1996 he was
an equity portfolio manager for Panorama
Series Fund, Inc. and other mutual funds
and pension accounts managed by G.R.
Phelps.
James C. Swain,
Vice Chairman of the Board Chairman, CEO and Trustee, Director or
Managing Partner of the Denver-based
Oppenheimer Funds; President and a
Director of Centennial; formerly President
and Director of OAMC, and Chairman of the
Board of SSI.
James Tobin,
Vice President None.
Jay Tracey,
Vice President Vice President of the Manager; Vice
President and Portfolio Manager of
Oppenheimer Discovery Fund, Oppenheimer
Global Emerging Growth Fund and
Oppenheimer Enterprise Fund. Formerly
Managing Director of Buckingham Capital
Management.
Gary Tyc,
Vice President, Assistant
Secretary and Assistant Treasurer Assistant Treasurer of the Distributor and
SFSI.
Ashwin Vasan,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Dorothy Warmack,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds.
Jerry A. Webman,
Senior Vice President Director of New York-
based tax-exempt fixed income Oppenheimer
Funds; Formerly Managing Director and
Chief Fixed Income Strategist at
Prudential Mutual Funds.
Christine Wells,
Vice President None.
Joseph Welsh,
Assistant Vice President None.
Kenneth B. White,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; a Chartered
Financial Analyst; Vice President of
HarbourView; prior to March, 1996 he was
an equity portfolio manager for Panorama
Series Fund, Inc. and other mutual funds
and pension funds managed by G.R. Phelps.
William L. Wilby,
Senior Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; Vice President
of HarbourView.
Carol Wolf,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; Vice President
of Centennial; Vice President, Finance and
Accounting and member of the Board of
Directors of the Junior League of Denver,
Inc.
Robert G. Zack,
Senior Vice President and
Assistant Secretary Associate General Counsel of the Manager;
Assistant Secretary of the Oppenheimer
Funds; Assistant Secretary of SSI, SFSI;
an officer of other Oppenheimer Funds.
Arthur J. Zimmer,
Vice President An officer and/or portfolio manager of
certain Oppenheimer funds; Vice President
of Centennial.
</TABLE>
The Oppenheimer Funds include the New York-based Oppenheimer Funds,
the Denver-based Oppenheimer Funds, and the Quest/Rochester Funds,
set forth below:
New York-based Oppenheimer Funds
- --------------------------------
Oppenheimer Multiple Strategies Fund
Oppenheimer California Municipal Fund
Oppenheimer Capital Appreciation Fund
Oppenheimer Discovery Fund
Oppenheimer Enterprise Fund
Oppenheimer Global Emerging Growth Fund
Oppenheimer Global Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Growth Fund
Oppenheimer International Growth Fund
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multi-Sector Income Trust
Oppenheimer Multi-State Municipal Trust
Oppenheimer New York Municipal Fund
Oppenheimer Fund
Oppenheimer Series Fund, Inc.
Oppenheimer Municipal Bond Fund
Oppenheimer U.S. Government Trust
Oppenheimer World Bond Fund
Oppenheimer Developing Markets Fund
Denver-based Oppenheimer Funds
- ------------------------------
Centennial America Fund, L.P.
Centennial California Tax Exempt Trust
Centennial Government Trust
Centennial Money Market Trust
Centennial New York Tax Exempt Trust
Centennial Tax Exempt Trust
Daily Cash Accumulation Fund, Inc.
Oppenheimer Cash Reserves
Oppenheimer Champion Income Fund
Oppenheimer Equity Income Fund
Oppenheimer High Yield Fund
Oppenheimer Integrity Funds
Oppenheimer International Bond Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer Main Street Funds, Inc.
Oppenheimer Strategic Income Fund
Oppenheimer Strategic Income & Growth Fund
Oppenheimer Municipal Fund
Oppenheimer Total Return Fund, Inc.
Oppenheimer Variable Account Funds
Panorama Series Fund, Inc.
The New York Tax-Exempt Income Fund, Inc.
Quest/Rochester Funds
- ---------------------------------
Oppenheimer Quest Global Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Quest For Value Funds
Oppenheimer Bond Fund For Growth
Rochester Fund Municipals
Limited-Term New York Municipal Fund
The address of OppenheimerFunds, Inc., the New York-based
Oppenheimer Funds, Quest funds, OppenheimerFunds Distributor, Inc.,
HarbourView Asset Management Corp., Oppenheimer Partnership
Holdings, Inc., and Oppenheimer Acquisition Corp. is Two World
Trade Center, New York, New York 10048-0203.
The address of the Denver-based Oppenheimer Funds, Shareholder
Financial Services, Inc., Shareholder Services, Inc.,
OppenheimerFunds Services, Centennial Asset Management Corporation,
Centennial Capital Corp., and Oppenheimer Real Asset Management,
Inc. is 6803 South Tuscon Way, Englewood, Colorado 80112.
The address of MultiSource Services, Inc. is 1700 Lincoln
Street, Denver, Colorado 80203.
The address of Oppenheimer Bond Fund For Growth, Rochester
Fund Municipals and Limited Term New York Municipal Fund is 350
Linden Oaks, Rochester, New York 14625-2807.
Item 29. Principal Underwriter
- -------- ---------------------
Not Applicable.
30. Location of Portfolios and Records
The accounts, books and other documents required to be
maintained by Registrant pursuant to Section 31(a) of the
Investment Company Act of 1940 and rules promulgated thereunder are
in the possession of OppenheimerFunds, Inc. at its offices at 6803
South Tucson Way, Englewood, Colorado 80112.
31. Management Services.
Not Applicable.
32. Undertakings.
(a) Not Applicable.
(b) Not Applicable.
(c) The company will furnish each person to whom a prospectus
is delivered with a copy of the Company's latest annual
report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and/or the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the County of Arapahoe and State of Colorado on
the 23rd day of April, 1997.
PANORAMA SERIES FUND, INC.
by: /s/ James C. Swain *
--------------------
James C. Swain, Chairman
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities
and on the dates indicated:
<TABLE>
<CAPTION>
Signatures: Title Date
- ----------- ----------------- --------------
<S> <C> <C>
/s/ James C. Swain* Chairman of the Board April 23, 1997
- --------------------- of Directors and
James C. Swain Principal Executive
Officer
/s/ George Bowen* Treasurer and April 23, 1997
- ---------------------- Principal Financial
George Bowen and Accounting Officer
/s/ Robert G. Avis* Director April 23, 1997
- ----------------------
Robert G. Avis
/s/ William A. Baker* Director April 23, 1997
- ----------------------
William A. Baker
/s/ Charles Conrad, Jr.* Director April 23, 1997
- ----------------------
Charles Conrad, Jr.
/s/ Sam Freedman* Director April 23, 1997
- ----------------------
Sam Freedman
/s/ Raymond J. Kalinowski* Director April 23, 1997
- ----------------------
Raymond J. Kalinowski
/s/ C. Howard Kast* Director April 23, 1997
- ----------------------
C. Howard Kast
/s/ Robert M. Kirchner* Director April 23, 1997
- ----------------------
Robert M. Kirchner
/s/ Ned M. Steel* Director April 23, 1997
- -----------------------
Ned M. Steel
</TABLE>
*By: /s/ Robert G. Zack
-------------------------------------
Robert G. Zack, Attorney-in-Fact
<PAGE>
PANORAMA SERIES FUND, INC.
Registration No.
Post-Effective Amendment No. 25
Index to Exhibits
-----------------
Exhibit No. Description
- ----------- -----------
24(b)(1.1) Articles Supplementary dated August 29, 1996.
24(b)(11) Independent Auditors' Consent
(a) Deloitte & Touche, LLP
(b) Arthur Andersen
24(b)(16) Performance Data Computation Schedule
24(b)(17)(a) Total Return Portfolio - Financial Data
Schedule
24(b)(17)(b) Growth Portfolio - Financial Data Schedule
24(b)(17)(c) International Equity Portfolio - Financial
Data Schedule
24(b)(17)(d) LifeSpan Capital Appreciation Portfolio -
Financial Data Schedule
24(b)(17)(e) LifeSpan Balanced Portfolio- Financial Data
Schedule
24(b)(17)(f) LifeSpan Diversified Income Portfolio-
Financial Data Schedule
24(b)(17)(g) Government Securities Portfolio - Financial
Data Schedule
--- Powers of Attorney - Filed herewith. (James C.
Swain, George C. Bowen, Robert G. Avis, William
A. Baker, Charles Conrad, Jr., Sam Freedman,
Raymond J. Kalinowski, C. Howard Kast, Robert
M. Kirchner, Ned M. Steel).
i:\legal\prosp\pan.ptc
PANORAMA SERIES FUND, INC.
ARTICLES SUPPLEMENTARY
Panorama Series Fund, Inc., a Maryland corporation (the
"Corporation"), having its principal office in Maryland in
Baltimore City, Maryland, hereby certifies to the State Department
of Assessments and Taxation of Maryland that:
FIRST: Pursuant to Article IV of the Corporation's Articles of
Incorporation, the Corporation has the authority to issue three
billion (3,000,000,000) shares of capital stock of all series.
Pursuant to the authority expressly vested in the Board of
Directors of the Corporation by Article IV of the Corporation's
Articles of Incorporation, the Board of Directors has duly re-
classified five hundred million (500,000,000) of the authorized but
unissued shares of the Corporation's capital stock, classifying two
hundred million (200,000,000) of said shares as additional shares
of the Growth Portfolio series and classifying three hundred
million (300,000,000) of said shares as additional shares of the
Total Return Portfolio series, so that the number of shares of the
Corporation's capital stock allocated to each series that the
Corporation has authority to issue is as follows:
Series Number of Shares
Money Market Portfolio 150,000,000
Government Securities Portfolio 150,000,000
Income Portfolio 150,000,000
Total Return Portfolio 950,000,000
Growth Portfolio 350,000,000
Aggressive Growth Portfolio 150,000,000
International Equity Portfolio 150,000,000
LifeSpan Capital Appreciation Portfolio 200,000,000
LifeSpan Balanced Portfolio 200,000,000
LifeSpan Diversified Income Portfolio 200,000,000
Authorized but Unallocated to any Portfolio
350,000,000
SECOND: The terms of the Common Stock in each such series are
as set forth in Article IV of the Corporation's Articles of
Incorporation.
THIRD: These Articles Supplementary do not increase the
aggregate authorized capital stock of the Corporation.
IN WITNESS WHEREOF, Panorama Series Fund, Inc. has caused
these presents to be signed in its name and on its behalf by its
Vice President and witnessed by its Assistant Secretary on this
29th day of August, 1996.
PANORAMA SERIES FUND, INC.
WITNESS: /s/ Robert G. Zack By: /s/ Andrew J. Donohue
Robert G. Zack Andrew J. Donohue
Assistant Secretary Vice President
THE UNDERSIGNED, Vice President of Panorama Series Fund, Inc.,
who executed on behalf of the Corporation the Articles
Supplementary of which this Certificate is made a part, hereby
acknowledges in the name and on behalf of said Corporation the
foregoing Articles Supplementary to be the corporate act of said
Corporation and hereby certifies that the matters and facts set
forth herein with respect to the authorization and approval thereof
are true in all material respects under the penalties of perjury.
/s/ Andrew J. Donohue
Andrew J. Donohue
Vice President
orgzn\panorama
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 25 to
Registration Statement No. 2-73969 of Panorama Series Fund, Inc. of our
report dated January 22, 1997 appearing in the Statement of Additional
Information, which is a part of such Registration Statement, and to the
reference to us under the heading "Financial Highlights" appearing in the
Prospectus, which is also a part of such Registration Statement.
/s/ Deloitte & Touche LLP
- -------------------------
DELOITTE & TOUCHE LLP
Denver, Colorado
April 22, 1997
PROSP\600con
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement of our reports on Panorama Series Fund,
Inc. Government Securities, Total Return, Growth and International
Equity Portfolios (formerly Connecticut Mutual Financial Services Series
Fund I, Inc. Government Securities, Total Return, Growth and International
Equity Portfolios,respectively) dated February 15, 1996 and Panorama Series
Fund, Inc. LifeSpan Diversified Income, LifeSpan Balanced and LifeSpan Capital
Appreciation Portfolios (formerly Connecticut Mutual Financial Services Fund I,
Inc., LifeSpan Balanced and LifeSpan Capital Appreciation Portfolios,
respectively) dated February 29, 1996 incorporated by reference in
Panorama Series Fund, Inc.'s Form N-1A Post-Effective Amendment No. 25 under
the Securities Act of 1933 and Amendment No. 25 under the Investment Company
Act of 1940 (registration No. 2-73969).
/s/ Arthur Andersen LLP
Arthur Andersen LLP
Hartford, Connecticut
April 25, 1997
prosp\panart.con
Panorama Series Fund, Inc.
Exhibit 24(b)(16) to Form N-1A
Performance Data Computation Schedule
The Fund's average annual total returns and total returns are
calculated as described below, on the basis of the Fund's
distributions, for the past 10 years which are as follows:
Distribution Amount From Amount From
Reinvestment Investment Long or Short-Term Reinvestment
(Ex)Date Income Capital Gains Price
Growth Portfolio
05/08/87 0.0000000 0.1515053 1.800
12/31/87 0.0352126 0.2243063 1.220
12/30/88 0.0363978 0.0000000 1.360
08/14/89 0.0001306 0.0000000 1.760
12/29/89 0.0670265 0.1297860 1.650
08/15/90 0.0012833 0.0110943 1.590
12/31/90 0.0479550 0.0000000 1.460
08/09/91 0.0001684 0.0000000 1.780
12/31/91 0.0374164 0.1003146 1.870
08/14/92 0.0000822 0.0000000 1.900
12/31/92 0.0392363 0.1518530 1.910
08/05/93 0.0000201 0.0267043 2.160
12/30/93 0.0417154 0.1652846 2.080
08/09/94 0.0000152 0.0177824 2.080
12/29/94 0.0334335 0.0488525 1.980
08/22/95 0.0000284 0.0084328 2.450
12/28/95 0.0410949 0.1379031 2.510
06/28/96 0.0100000 0.0145300 2.660
Total Return Portfolio
05/08/87 0.0009131 0.1044332 1.550
12/31/87 0.0547573 0.1315766 1.200
08/15/88 0.0007119 0.0000000 1.260
12/30/88 0.0689259 0.0000000 1.270
08/14/89 0.0009692 0.0000000 1.500
12/29/89 0.0875188 0.0633398 1.410
08/15/90 0.0017051 0.0077066 1.410
12/31/90 0.0776847 0.0000000 1.330
08/09/91 0.0010890 0.0000000 1.540
12/31/91 0.0660506 0.0756638 1.570
08/14/92 0.0000092 0.0000000 1.630
12/31/92 0.0645683 0.1056527 1.560
08/05/93 0.0000517 0.0115227 1.720
12/30/93 0.0572656 0.0945967 1.650
08/09/94 0.0000888 0.0095649 1.620
12/29/94 0.0626554 0.0359307 1.520
08/22/95 0.0003783 0.0012618 1.750
12/28/95 0.0727680 0.0578799 1.750
06/28/96 0.0100000 0.0063400 1.780
Government Portfolio
12/31/92 0.0561466 0.0000000 1.010
08/05/93 0.0000174 0.0000000 1.100
12/30/93 0.0608593 0.0000000 1.060
Panorama Series Fund, Inc.
Page 2
Distribution Amount From Amount From
Reinvestment Investment Long or Short-Term Reinvestment
Ex)Date Income Capital Gains Price
Government Portfolio (Continued):
08/09/94 0.0013863 0.0000000 1.010
12/29/94 0.0568324 0.0000000 0.950
08/22/95 0.0003916 0.0000000
1.050 12/28/95 0.0592154
0.0000000 1.070
04/23/96 0.0005927 0.0000000 1.040
International Equity Portfolio
12/31/92 0.0238311 0.0129209
0.920 08/05/93 0.0004676
0.0122928 1.070
12/30/93 0.0173915 0.0000000 1.090
08/09/94 0.0000000 0.0006346 1.140
12/29/94 0.0000000 0.0151248 1.090
08/22/95 0.0000000 0.0095459 1.150
12/28/95 0.0423314 0.0000000 1.150
06/28/96 0.0120000 0.0000000 1.240
LifeSpan Diversified Income Portfolio
12/28/95 0.0168553 0.0000000
1.040 06/28/96 0.0100000
0.0014000 1.040
LifeSpan Balanced Portfolio
12/28/95 0.0107582 0.0000000 1.050
06/28/96 0.0100000 0.0000000 1.120
LifeSpan Capital Appreciation Portfolio
12/28/95 0.0065493 0.0000000 1.060
06/28/96 0.0100000 0.0000000 1.180
1. Average Annual Total Returns for the Periods Ended 12/31/96:
The formula for calculating average annual total return is as follows:
1 ERV n
--------------- = n (---) - 1 = average annual total return
number of years P
Where: ERV = ending redeemable value of a hypothetical $1,000 payment
made at the beginning of the period
P = hypothetical initial investment of $1,000
Examples at NAV:
Growth Portfolio
One Year Five Year
$1,188.73 1 $2,223.98 .2
(---------) - 1 = 18.87% (---------) - 1 = 17.33%
$1,000 $1,000
Panorama Series Fund, Inc.
Page 3
1. Average Annual Total Returns for the Periods Ended 12/31/96 (Continued):
Examples at NAV:
Growth Portfolio (Continued):
Ten Year
$4,389.98 .1
(---------) - 1 = 15.94%
$1,000
Total Return Portfolio:
One Year Five Year
$1,101.45 1 $1,724.97 .2
(---------) - 1 = 10.15% (---------) - 1 = 11.52%
$1,000 $1,000
Ten Year
$3,196.25 .1
(---------) - 1 = 12.32%
$1,000
Government Securities Portfolio:
One Year Inception
$1,019.27 1 $1,363.97 .2158
(---------) - 1 = 1.93% (----------) - 1 = 6.93%
$1,000 $1,000
International Equity Portfolio:
One Year Inception
$1,132.59 1 $1,476.80 .2158
(---------) - 1 = 13.26% (---------) - 1 = 8.78%
$1,000 $1,000
LifeSpan Diversified Income Portfolio:
One Year Inception
$1,069.29 1 $1,130.08 .7500
(---------) - 1 = 6.93% (---------) - 1 = 9.61%
$1,000 $1,000
Panorama Series Fund, Inc.
Page 4
1. Average Annual Total Returns for the Periods Ended 12/31/96 (Continued):
Examples at NAV:
LifeSpan Balanced Portfolio:
One Year Inception
$1,133.84 1 $1,202.73 .7500
(---------) - 1 = 13.38% (---------) - 1 = 14.85%
$1,000 $1,000
LifeSpan Capital Appreciation Portfolio:
One Year Inception
$1,179.72 1 $1,258.24 .7500
(---------) - 1 = 17.97% (---------) - 1 = 18.80%
$1,000 $1,000
2. Cumulative Total Returns for the Periods Ended 12/31/96:
The formula for calculating cumulative total return is as follows:
ERV - P
------- = Cumulative Total Return
P
Examples at NAV:
Growth Fund
One Year Five Year
$1,188.73 - $1,000 $2,223.98 - $1,000
(------------------) - 1 = 18.87% (-----------------) - 1 = 122.40%
$1,000 $1,000
Ten Year
$4,389.98 - $1,000
(------------------) - 1 = 339.00%
$1,000
Panorama Series Fund, Inc.
Page 5
2. Cumulative Total Returns for the Periods Ended 12/31/96 (Continued):
Examples at NAV:
Total Return Portfolio:
One Year Five Year
$1,101.45 - $1,000 $1,724.97 - $1,000
(------------------) - 1 = 10.15% (------------------) - 1 = 72.50%
$1,000 $1,000
Ten Year
$3,196.25 - $1,000
(------------------) - 1 = 219.63%
$1,000
Government Securities Portfolio:
One Year Inception
$1,019.27 - $1,000 $1,363.97 - $1,000
(------------------) - 1 = 1.93% (------------------) - 1 = 36.40%
$1,000 $1,000
International Equity Portfolio:
One Year Inception
$1,132.59 - $1,000 $1,476.80 - $1,000
(------------------) - 1 = 13.26% (------------------) - 1 = 47.68%
$1,000 $1,000
LifeSpan Diversified Income Portfolio:
One Year Inception
$1,069.29 - $1,000 $1,130.08 - $1,000
(------------------) - 1 = 6.93% (------------------) - 1 = 13.01%
$1,000 $1,000
LifeSpan Balanced Portfolio:
One Year Inception
$1,133.84 - $1,000 $1,202.73 - $1,000
(------------------) - 1 = 13.38% (------------------) - 1 = 20.27%
$1,000 $1,000
Panorama Series Fund, Inc.
Page 6
2. Cumulative Total Returns for the Periods Ended 12/31/96 (Continued):
Examples at NAV:
LifeSpan Capital Appreciation Portfolio:
One Year Inception
$1,179.72 - $1,000 $1,258.24 - $1,000
(------------------) - 1 = 17.97% (------------------) - 1 = 25.82%
$1,000 $1,000
3. Standardized Yield for the 30-Day Period Ended 12/31/96:
The Fund's standardized yields are calculated using the following formula
set forth in the SEC rules:
a - b 6
Yield = 2 { (------ + 1 ) - 1 }
cd
The symbols above represent the following factors:
a = Dividends and interest earned during the 30-day period.
b = Expenses accrued for the period (net of any expense
reimbursements).
c = The average daily number of Fund shares outstanding during
the 30-day period that were entitled to receive dividends.
d = The Fund's net asset value (excluding contingent deferred
sales charge) per share on the last day of the period.
Government Securities Portfolio
$119,062.20 - ($1,197.53) 6
2{(------------------------- + 1) - 1} = 6.29%
21,323,790 x $1.09
4. DIVIDEND YIELDS FOR THE 30-DAY PERIOD ENDED 12/31/96:
The Fund's dividend yields are calculated using the following formula:
Dividend Yield = a / b
The symbols above represent the following factors:
a = The last declared dividend during the period.
b = The Fund's net asset value (excluding sales charge) per share
on the last day of the period.
Example:
Government Securities Portfolio: $0.0005927 / $1.09 = 0.05%
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> Panorama Total Return Portfolio
<SERIES>
<NUMBER> 5
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 1,044,437,823
<INVESTMENTS-AT-VALUE> 1,122,312,563
<RECEIVABLES> 7,808,659
<ASSETS-OTHER> 23,467
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,130,144,689
<PAYABLE-FOR-SECURITIES> 7,605,233
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 463,788
<TOTAL-LIABILITIES> 8,069,021
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 911,735,698
<SHARES-COMMON-STOCK> 586,602,688
<SHARES-COMMON-PRIOR> 566,759,895
<ACCUMULATED-NII-CURRENT> 38,224,047
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 94,241,183
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 77,874,740
<NET-ASSETS> 1,122,075,668
<DIVIDEND-INCOME> 8,211,955
<INTEREST-INCOME> 41,163,350
<OTHER-INCOME> 0
<EXPENSES-NET> 5,834,267
<NET-INVESTMENT-INCOME> 43,541,038
<REALIZED-GAINS-CURRENT> 94,961,143
<APPREC-INCREASE-CURRENT> (35,958,926)
<NET-CHANGE-FROM-OPS> 102,543,255
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,852,700
<DISTRIBUTIONS-OF-GAINS> 3,476,504
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 93,916,426
<NUMBER-OF-SHARES-REDEEMED> 79,306,418
<SHARES-REINVESTED> 5,232,785
<NET-CHANGE-IN-ASSETS> 128,149,517
<ACCUMULATED-NII-PRIOR> 373,665
<ACCUMULATED-GAINS-PRIOR> 2,918,588
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,817,245
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,834,267
<AVERAGE-NET-ASSETS> 1,057,883,399
<PER-SHARE-NAV-BEGIN> 1.75
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 0.11
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.01
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.91
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> Panorama Growth Portfolio
<SERIES>
<NUMBER> 3
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 478,193,945
<INVESTMENTS-AT-VALUE> 592,436,908
<RECEIVABLES> 1,048,264
<ASSETS-OTHER> 7,576
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 593,492,748
<PAYABLE-FOR-SECURITIES> 6,714,730
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 555,740
<TOTAL-LIABILITIES> 7,270,470
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 419,884,559
<SHARES-COMMON-STOCK> 196,587,477
<SHARES-COMMON-PRIOR> 160,736,718
<ACCUMULATED-NII-CURRENT> 6,282,780
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 45,811,976
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 114,242,963
<NET-ASSETS> 586,222,278
<DIVIDEND-INCOME> 7,925,458
<INTEREST-INCOME> 2,981,247
<OTHER-INCOME> 0
<EXPENSES-NET> 2,853,668
<NET-INVESTMENT-INCOME> 8,053,037
<REALIZED-GAINS-CURRENT> 45,460,285
<APPREC-INCREASE-CURRENT> 34,820,597
<NET-CHANGE-FROM-OPS> 88,333,919
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,827,903
<DISTRIBUTIONS-OF-GAINS> 2,683,361
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 55,608,996
<NUMBER-OF-SHARES-REDEEMED> 21,454,970
<SHARES-REINVESTED> 1,696,733
<NET-CHANGE-IN-ASSETS> 180,287,156
<ACCUMULATED-NII-PRIOR> 57,646
<ACCUMULATED-GAINS-PRIOR> 3,035,052
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,801,667
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,853,668
<AVERAGE-NET-ASSETS> 494,280,932
<PER-SHARE-NAV-BEGIN> 2.53
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.43
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.01
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 2.98
<EXPENSE-RATIO> 0.58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> International Equity Portfolio
<SERIES>
<NUMBER> 7
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<INVESTMENTS-AT-COST> 54,219,894
<INVESTMENTS-AT-VALUE> 62,582,295
<RECEIVABLES> 592,190
<ASSETS-OTHER> 3,535
<OTHER-ITEMS-ASSETS> 135,043
<TOTAL-ASSETS> 63,313,063
<PAYABLE-FOR-SECURITIES> 657,448
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 70,154
<TOTAL-LIABILITIES> 727,602
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,831,171
<SHARES-COMMON-STOCK> 48,644,884
<SHARES-COMMON-PRIOR> 39,778,388
<ACCUMULATED-NII-CURRENT> 356,464
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,034,996
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,362,830
<NET-ASSETS> 62,585,461
<DIVIDEND-INCOME> 847,225
<INTEREST-INCOME> 271,792
<OTHER-INCOME> 0
<EXPENSES-NET> 688,060
<NET-INVESTMENT-INCOME> 430,957
<REALIZED-GAINS-CURRENT> 2,365,382
<APPREC-INCREASE-CURRENT> 3,976,250
<NET-CHANGE-FROM-OPS> 6,772,589
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 554,917
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 17,318,472
<NUMBER-OF-SHARES-REDEEMED> 8,889,447
<SHARES-REINVESTED> 447,471
<NET-CHANGE-IN-ASSETS> 16,810,942
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 245,119
<OVERDISTRIB-NII-PRIOR> 2,025,132
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 569,471
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 688,060
<AVERAGE-NET-ASSETS> 56,893,304
<PER-SHARE-NAV-BEGIN> 1.15
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.13
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.29
<EXPENSE-RATIO> 1.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> Panorama LifeSpan Capital Appreciation Portfolio
<SERIES>
<NUMBER> 10
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 37,624,815
<INVESTMENTS-AT-VALUE> 42,731,227
<RECEIVABLES> 179,274
<ASSETS-OTHER> 3,240
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 42,913,741
<PAYABLE-FOR-SECURITIES> 830,590
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 88,957
<TOTAL-LIABILITIES> 919,547
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 35,585,500
<SHARES-COMMON-STOCK> 33,955,474
<SHARES-COMMON-PRIOR> 25,154,663
<ACCUMULATED-NII-CURRENT> 371,899
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 930,339
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,106,456
<NET-ASSETS> 41,994,194
<DIVIDEND-INCOME> 447,273
<INTEREST-INCOME> 619,088
<OTHER-INCOME> 0
<EXPENSES-NET> 430,452
<NET-INVESTMENT-INCOME> 635,909
<REALIZED-GAINS-CURRENT> 1,155,841
<APPREC-INCREASE-CURRENT> 3,269,866
<NET-CHANGE-FROM-OPS> 5,061,616
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 278,560
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,599,280
<NUMBER-OF-SHARES-REDEEMED> 4,035,039
<SHARES-REINVESTED> 236,570
<NET-CHANGE-IN-ASSETS> 15,225,710
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (215,118)
<OVERDISTRIB-NII-PRIOR> 16,721
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 281,564
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 430,452
<AVERAGE-NET-ASSETS> 33,108,619
<PER-SHARE-NAV-BEGIN> 1.06
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.17
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.24
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> LifeSpan Balanced Portfolio
<SERIES>
<NUMBER> 9
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 46,150,645
<INVESTMENTS-AT-VALUE> 51,187,601
<RECEIVABLES> 342,426
<ASSETS-OTHER> 3,217
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 51,533,244
<PAYABLE-FOR-SECURITIES> 111,885
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 85,036
<TOTAL-LIABILITIES> 196,921
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 44,729,919
<SHARES-COMMON-STOCK> 43,471,343
<SHARES-COMMON-PRIOR> 33,743,194
<ACCUMULATED-NII-CURRENT> 1,053,055
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 516,364
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,036,985
<NET-ASSETS> 51,336,323
<DIVIDEND-INCOME> 458,739
<INTEREST-INCOME> 1,427,764
<OTHER-INCOME> 0
<EXPENSES-NET> 490,615
<NET-INVESTMENT-INCOME> 1,395,888
<REALIZED-GAINS-CURRENT> 713,856
<APPREC-INCREASE-CURRENT> 3,132,282
<NET-CHANGE-FROM-OPS> 5,242,026
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 364,414
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,771,412
<NUMBER-OF-SHARES-REDEEMED> 2,368,019
<SHARES-REINVESTED> 324,756
<NET-CHANGE-IN-ASSETS> 15,869,094
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (186,996)
<OVERDISTRIB-NII-PRIOR> 9,802
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 355,893
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 490,615
<AVERAGE-NET-ASSETS> 41,846,597
<PER-SHARE-NAV-BEGIN> 1.05
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0.11
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.18
<EXPENSE-RATIO> 1.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> Panorama LifeSpan Diversified Income Portfolio
<SERIES>
<NUMBER> 8
<NAME> Panorama Series Fund, Inc.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 23,868,516
<INVESTMENTS-AT-VALUE> 24,890,439
<RECEIVABLES> 309,781
<ASSETS-OTHER> 2,386
<OTHER-ITEMS-ASSETS> 115,167
<TOTAL-ASSETS> 25,317,773
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,674
<TOTAL-LIABILITIES> 43,674
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 23,097,534
<SHARES-COMMON-STOCK> 22,947,272
<SHARES-COMMON-PRIOR> 20,324,034
<ACCUMULATED-NII-CURRENT> 1,127,966
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,677
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,021,922
<NET-ASSETS> 25,274,099
<DIVIDEND-INCOME> 228,453
<INTEREST-INCOME> 1,349,314
<OTHER-INCOME> 0
<EXPENSES-NET> 243,709
<NET-INVESTMENT-INCOME> 1,334,058
<REALIZED-GAINS-CURRENT> 34,119
<APPREC-INCREASE-CURRENT> 218,964
<NET-CHANGE-FROM-OPS> 1,587,141
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 218,759
<DISTRIBUTIONS-OF-GAINS> 30,626
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,767,203
<NUMBER-OF-SHARES-REDEEMED> 383,462
<SHARES-REINVESTED> 239,497
<NET-CHANGE-IN-ASSETS> 4,098,184
<ACCUMULATED-NII-PRIOR> 10,436
<ACCUMULATED-GAINS-PRIOR> 25,415
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 171,569
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 243,709
<AVERAGE-NET-ASSETS> 22,853,514
<PER-SHARE-NAV-BEGIN> 1.04
<PER-SHARE-NII> 0.06
<PER-SHARE-GAIN-APPREC> 0.01
<PER-SHARE-DIVIDEND> 0.01
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.10
<EXPENSE-RATIO> 1.07
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 355411
<NAME> PANORAMA GOVERNMENT SECURITIES PORTFOLIO
<SERIES>
<NUMBER> 6
<NAME> PANORAMA SERIES FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 22,797,982
<INVESTMENTS-AT-VALUE> 22,765,667
<RECEIVABLES> 418,744
<ASSETS-OTHER> 3,102
<OTHER-ITEMS-ASSETS> 64,328
<TOTAL-ASSETS> 23,251,841
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16,263
<TOTAL-LIABILITIES> 16,263
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 22,224,041
<SHARES-COMMON-STOCK> 21,267,047
<SHARES-COMMON-PRIOR> 22,754,263
<ACCUMULATED-NII-CURRENT> 1,450,831
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (406,979)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (32,315)
<NET-ASSETS> 23,235,578
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,606,277
<OTHER-INCOME> 0
<EXPENSES-NET> 146,839
<NET-INVESTMENT-INCOME> 1,459,438
<REALIZED-GAINS-CURRENT> 45,633
<APPREC-INCREASE-CURRENT> (990,673)
<NET-CHANGE-FROM-OPS> 514,398
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,793
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,228,090
<NUMBER-OF-SHARES-REDEEMED> 4,728,604
<SHARES-REINVESTED> 13,298
<NET-CHANGE-IN-ASSETS> (1,073,030)
<ACCUMULATED-NII-PRIOR> 13,793
<ACCUMULATED-GAINS-PRIOR> (461,219)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 125,427
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 146,839
<AVERAGE-NET-ASSETS> 23,880,499
<PER-SHARE-NAV-BEGIN> 1.07
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> (0.05)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.09
<EXPENSE-RATIO> 0.62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Sam Freedman
- ---------------------
Sam Freedman
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Ned M. Steel
- ---------------------------------
Ned M. Steel
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Robert Avis
- ---------------------------------
Robert Avis
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUNDCorporation,
INC., a Maryland corporation (the "Corporation"), to sign on his
behalf any and all Registration Statements (including any post-
effective amendments to Registration Statements) under the
Securities Act of 1933, the Investment Company Act of 1940 and any
amendments and supplements thereto, and other documents in
connection thereunder, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-
in-fact and agents, and each of them, full power and authority to
do and perform each and every act and thing requisite and necessary
to be done in and about the premises, as fully as to all intents
and purposes as he might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents, and each
of them, may lawfully do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ C. Howard Kast
- ---------------------------------
C. Howard Kast
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Raymond J. Kalinowski
- ---------------------------------
Raymond J. Kalinowski
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Charles Conrad, Jr.
- ---------------------------------
Charles Conrad, Jr.
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ William A. Baker
- ---------------------------------
William A. Baker
<PAGE>
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as Treasurer/Chief Financial Officer of PANORAMA
SERIES FUND, INC., a Maryland corporation (the "Corporation"), to
sign on his behalf any and all Registration Statements (including
any post-effective amendments to Registration Statements) under the
Securities Act of 1933, the Investment Company Act of 1940 and any
amendments and supplements thereto, and other documents in
connection thereunder, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-
in-fact and agents, and each of them, full power and authority to
do and perform each and every act and thing requisite and necessary
to be done in and about the premises, as fully as to all intents
and purposes as he might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents, and each
of them, may lawfully do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ George C. Bowen
- ---------------------------------
George C. Bowen
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Andrew J. Donohue or Robert G. Zack, and
each of them, his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in
his capacity as a Director of PANORAMA SERIES FUND, INC., a
Maryland corporation (the "Corporation"), to sign on his behalf any
and all Registration Statements (including any post-effective
amendments to Registration Statements) under the Securities Act of
1933, the Investment Company Act of 1940 and any amendments and
supplements thereto, and other documents in connection thereunder,
and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing requisite and necessary to be done in and about
the premises, as fully as to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents, and each of them, may lawfully
do or cause to be done by virtue hereof.
Dated this 27th day of June, 1996.
/s/ Robert M. Kirchner
- ---------------------------------
Robert M. Kirchner
