<PAGE>
PANORAMA SERIES FUND, INC.
ANNUAL REPORT
DECEMBER 31, 1998
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
OBJECTIVE
PANORAMA SERIES FUND, INC. - 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.
NARRATIVE BY PETER ANTOS AND TEAM, PORTFOLIO MANAGERS
Our disciplined strategy of allocating assets among stocks, bonds and cash
enabled us to limit risks and produce a positive return during a volatile fiscal
period that ended December 31, 1998.
Trouble surfaced with an economic slump in Asia more than a year ago. Concerns
about the impact of reduced global spending on corporate profits eventually
affected the financial markets of developed nations as well. In the late spring,
signs appeared that U.S. corporate profit growth was suffering as a result of
weakening global demand for a wide range of products. Average stock prices fell
and rebounded in the fourth quarter as monetary authorities around the world
lowered interest rates in an attempt to stimulate economic activity. Throughout
this period of economic uncertainty and market volatility, investors focused
their buying primarily on securities issued by the largest and most visible
companies.
Historically, the undervalued stocks in which the Portfolio invests have proven
to be bargains over the long term, but they have tended to underperform the
market during times of slowing corporate earnings growth and investor
uncertainty. Such an environment is generally most favorable for only those
stocks which investors believe to be the safest and most predictable
investments. Accordingly, despite the potential for positive earnings surprises,
the Portfolio's stock holdings suffered. On the other hand, the Portfolio
benefited from its investments in U.S. Treasury bonds and, to a lesser extent,
investment-grade corporate bonds. Investors throughout the world searching for
safe, high-quality securities turned to these asset classes for shelter.
In May, we responded to the economic turmoil by reallocating our assets with the
goal of reducing our stock exposure. As a result, stock holdings dropped from
about 49% of the portfolio's assets at the beginning of the period to
approximately 44% by the end of August. By contrast, the Portfolio's bond
holdings increased from approximately 41% of assets at the beginning of the
period to nearly 48% by the end of August. The reduced stock holdings helped the
Portfolio as the market suffered a notable correction of about 20% in the
popular market averages. At the same time, our relatively large percentage of
bond and cash holdings helped offset much of the poor performance in the equity
portion of the Portfolio, with bonds performing well during the stock market's
summer slump.
We also took action within individual asset classes. In the stock portion of the
portfolio, we made a significant move away from companies that have a large
exposure to worldwide economic activity, especially to Asia. For example, we
reduced our holdings among financial institutions, many of which participated in
loans to Asian companies, and other Asian-based investments. We also reduced our
holdings in companies that produce basic materials, such as metals, chemicals
and paper, because, as Asian companies reduce their manufacturing and exporting,
they also reduce their consumption of these materials.
Instead, we focused the Portfolio's stock purchases among industries likely to
perform well even if the economy continues to slow, especially in those
companies with more stable earnings and improving management practices. We made
purchases among companies that produce consumer staples in the food and beverage
industries, and increased the Portfolio's holdings among utilities companies. As
stock prices fell during the summer, we also took the opportunity to add to the
Portfolio's holdings of reasonably priced communications and technology stocks.
On the bond side of the portfolio, we maintained a relatively long average
duration.(1) Duration is a measure of a bond's sensitivity to changes in
interest rates. The longer a portfolio's average duration, the higher the
returns investors are likely to receive in an environment of falling interest
rates, and conversely, the lower the returns are likely to receive in an
environment of rising interest rates. In anticipation of continued low
inflation, we kept our duration of the bond component of the portfolio longer
than our estimate of the average flexibly managed fund. As a result, the bond
portion of the portfolio performed relatively strongly. We also benefited from
our focus on bonds of industry leaders with improving credit fundamentals. These
securities held their value during the period much better than higher yielding,
but riskier, low-grade securities.
- ----------------------------
1. It should be noted that the Fund does not have a policy of maintaining an
average portfolio duration.
1
<PAGE>
We believe the Portfolio's performance during this difficult time illustrates
the advantages of our active, disciplined approach to asset allocation. When
stock markets perform well, our stock holdings should position investors to
benefit from the opportunities for capital appreciation. When stock markets
perform poorly, our cash and bond holdings provide a cushion against losses. In
other words, Panorama Series Fund, Inc. - Total Return Portfolio is an important
part of THE RIGHT WAY TO INVEST.
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MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the fiscal year that ended
December 31, 1998, Total Return Portfolio's value-oriented stock holdings
performed relatively poorly as investors focused their buying on larger, more
visible companies. However, our asset allocation strategies employed during the
year added notably to the fund's performance. Over the same time period, the
U.S. government bond market proved to be relatively strong. As a result, the
Portfolio's large percentage of U.S. Treasury securities and cash instruments,
and to a lesser extent, investment-grade corporate bonds helped limit risks and
losses during the summer months. The Manager also maintained a relatively long
average duration for the Portfolio's fixed-income investments in an environment
distinguished by steadily declining interest rates. The portfolio holdings,
allocations and management strategies of the Portfolio are subject to change.
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COMPARING THE PORTFOLIO'S PERFORMANCE TO THE MARKET. The graph that follows
shows the performance of a hypothetical $10,000 investment in the Portfolio held
until December 31, 1998. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolio. If these charges and
expenses were taken into account, performance would be lower.
The Portfolio is compared to the performance of the S&P 500 Index and the
Merrill Lynch Corporate & Government Master Index. 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 Merrill Lynch
Corporate & Government Master Index is a composite of Corporate and Government
Master indices 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 that follows
shows the effect of taxes. The Portfolio's performance reflects the effects of
the Portfolio's business and operating expenses. While indices comparisons may
be useful to provide a benchmark for the Portfolio's performance, it must be
noted that the Portfolio's investments are not limited to the investments in the
indices.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - Total Return Portfolio,
S&P 500 Index and Merrill Lynch Corporate & Government Master Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MERRILL LYNCH CORPORATE
PANORAMA TOTAL &
RETURN
PORTFOLIO S&P 500 INDEX GOVERNMENT MASTER INDEX
<S> <C> <C> <C>
12/31/88 $10,000 $10,000 $10,000
12/31/89 $12,298 $13,163 $11,412
12/31/90 $12,359 $12,754 $12,382
12/31/91 $15,918 $16,631 $14,350
12/31/92 $17,543 $17,896 $15,452
12/31/93 $20,399 $19,696 $17,161
12/31/94 $19,998 $19,955 $16,570
12/31/95 $24,931 $27,445 $19,752
12/31/96 $27,459 $33,743 $20,339
12/31/97 $32,623 $44,997 $22,328
12/31/98 $36,177 $57,854 $24,455
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(1)
1 YEAR 10.90% 5 YEAR 12.14% 10 YEAR 13.72%
1. 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.
2
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
OBJECTIVE
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO seeks long-term growth of capital
by investing primarily in common stocks with low price/earnings ratios and
better-than-anticipated earnings. Realization of current income is a secondary
consideration.
NARRATIVE BY PETER ANTOS AND TEAM, PORTFOLIO MANAGERS
The fiscal year that ended December 31, 1998 proved to be an exceptionally
difficult period for value stocks, especially the types of low price-to-earnings
multiple (P/E) stocks on which the Portfolio focuses. However, we believe that
underlying values in this sector are growing and that, in general, undervalued
stocks with positive earnings surprises are likely to reward investors for their
perseverance over time.
The trouble began with an economic slump in Asia more than a year ago. Concerns
about the impact of reduced global spending on corporate profits eventually
affected the financial markets of developed nations as well. In the late spring,
signs appeared that U.S. corporate profit growth was suffering as a result of
weakening global demand for a wide range of products. Average stock prices fell
sharply, but rebounded in the fourth quarter as monetary authorities around the
world lowered interest rates in an attempt to stimulate economic growth.
Throughout this period of economic uncertainty and market volatility, investors
sought safety by focusing their buying on stocks of the largest and most visible
companies.
Historically, value stocks have proven to be bargains over the long term, but
they have tended to underperform the market during times of slowing corporate
earnings growth and increasing investor uncertainty. Such an environment is
generally favorable for only those stocks which investors believe to be the
safest and most predictable investments, stocks which are often characterized by
relatively high P/E multiples. Accordingly, despite the potential for positive
earnings surprises, the Portfolio's holdings suffered this year because of their
value orientation.
In light of the global turmoil in 1998, we made a significant move away from
companies that have a large exposure to worldwide economic activity, especially
to Asia. For example, we eliminated our holdings in companies that produce basic
materials, such as metals, chemicals and paper, because, as Asian companies
reduce their manufacturing and exporting, they also reduce their consumption of
these materials. During the summer, we sharply reduced our holdings among
financial institutions, especially those which participated in loans to Asian
companies, and other Asian-based investments.
Instead, we focused the Portfolio's holdings among industries likely to perform
well even if the economy continues to slow, especially those with stable
earnings and improving management practices. For example, although stocks of
domestic retailers performed well for the Portfolio during the first half of the
year, we reduced the Portfolio's holdings of these and other consumer cyclicals
later in the period because these companies' profits tend to suffer as
discretionary consumer spending slows. In their place, we made purchases among
companies that produce consumer staples in the food and beverage industries,
because people will continue to purchase these items regardless of the economic
climate. In the fall, we added back to our holdings in the financial sector by
buying domestic insurance companies and some regional bank stocks.
We took further advantage of the decline in stock prices during the summer to
add to our holdings of reasonably priced stocks that showed evidence of
improving fundamentals. The Portfolio found particular opportunities to purchase
technology stocks we believed were undervalued.
Historically, we have found that buying stocks with low P/E ratios -- the value
approach -- creates a portfolio that can outperform the stock market as a whole
over time. Our approach combines this value discipline with a growth strategy.
The growth component focuses primarily on those low P/E stocks that also have
positive earnings surprises, because we believe that buying stocks in companies
that are doing better than people expected can add value over time.
We believe that our disciplined strategy continues to offer investors the
potential to benefit from overlooked, undervalued investment opportunities.
That's why we believe that investors are well served by holding the Panorama
Series Fund, Inc. - Growth Portfolio even through the difficult times, and why
we believe it's an important part of THE RIGHT WAY TO INVEST.
3
<PAGE>
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MANAGEMENT'S DISCUSSION OF PERFORMANCE. The fiscal year that ended December 31,
1998, proved to be an exceptionally difficult period for value stocks -- and in
particular the type of low P/E stocks which the Growth Portfolio holds -- as
investors reacted to market turmoil by focusing their buying on larger, more
visible companies. As a result, the Portfolio's performance was disappointing.
In light of increasing uncertainty around the globe, the Manager moved away from
companies that have a large exposure to worldwide economic activity, especially
in Asia. Instead, the Manager focused on the type of industries that tend to
perform well regardless of the economic climate. The Portfolio's holdings,
allocations and management strategies are subject to change.
- --------------------------------------------------------------------------------
COMPARING EACH PORTFOLIO'S PERFORMANCE TO THE MARKET. The graph that follows
shows the performance of a hypothetical $10,000 investment in the Portfolio held
until December 31, 1998. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolio. If these charges and
expenses were taken into account, performance would be lower.
The Fund's performance is compared to the performance of the S&P 500 Index, a
broad-based index of equity securities widely regarded as a general measurement
of the performance of the U.S. equity securities market. Index performance
reflects the reinvestment of dividends but does not consider the effect of
capital gains or transaction costs, and none of the data that follows shows the
effect of taxes. The Portfolio's performance reflects the effects of the
Portfolio's business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Portfolio's performance, it must be noted
that the Portfolio's investments are not limited to the investments in the
index.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - Growth Portfolio and S&P 500 Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA GROWTH
PORTFOLIO S&P 500 INDEX
<S> <C> <C>
12/31/88 $10,000 $10,000
12/31/89 $13,580 $13,163
12/31/90 $12,507 $12,754
12/31/91 $17,203 $16,631
12/31/92 $19,328 $17,896
12/31/93 $23,430 $19,696
12/31/94 $23,311 $19,955
12/31/95 $32,184 $27,445
12/31/96 $38,258 $33,743
12/31/97 $48,345 $44,997
12/31/98 $52,418 $57,854
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(1)
1 YEAR 8.43% 5 YEAR 17.47% 10 YEAR 18.02%
1. 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.
4
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
OBJECTIVE
THE PANORAMA SERIES FUND, INC. - 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.
NARRATIVE BY JERRY WEBMAN AND DAVID NEGRI, CO-PORTFOLIO MANAGERS
The Government Securities Portfolio was a strong performer over the twelve-month
period that ended December 31, 1998. The Portfolio achieved its strong
performance in an economic environment characterized by strong domestic growth,
low inflation and global uncertainty. Within the United States, a robust housing
market, strong stock market and increased consumer demand for products held the
economy on a course of continuing growth. However, the deepening crisis in Asian
markets, particularly the recession in Japan, led to slowing demand for U.S.
goods and lower prices for competing products that are produced overseas. As a
result, doubts arose about the sustainability of U.S. growth, and that
uncertainty drove short-term bond volatility higher. The prospect that Asia's
problems might spread also lowered expectations of U.S. inflation, and was a
factor in the Federal Reserve Board's decision to lower lending rates three
times from September to November. Since bond yields usually fall when inflation
is low and interest rates are declining, yields on long-term Treasury bonds fell
to historical lows.
In light of these circumstances, we actively managed the portfolio's
DURATION.(1) Duration is a measure of a bond's sensitivity to changes in
interest rates. The longer a portfolio's average duration, the better it is
likely to perform in an environment of falling interest rates, and conversely,
the worse it is likely to perform in an environment of rising interest rates. By
increasing the Portfolio's exposure to longer-maturity government bonds, we
succeeded in increasing the Portfolio's returns. We also increased the
percentage of the Portfolio's holdings in Treasury securities and other
government agency bonds, which positioned us to benefit from the rally that
occurred in the government bond sector throughout the year.
U.S. Treasury securities performed especially strongly during the second half of
the year, outperforming all other asset classes, fixed income and equities
alike. Treasuries performed well because investors, fearing the global impact of
the Asian crisis, sought the safest and most liquid investments available. We
took advantage of this situation by continuing to lengthen the Portfolio's
average duration and by allocating a higher percentage of the Portfolio's assets
to Treasuries. As a result, we participated strongly in the Treasury rally that
occurred in the second half of the year, and provided the Portfolio's investors
with a high level of current income for the year as a whole.
Looking ahead, we believe that the U.S. economy will continue to be affected by
the situation in Asia. Accordingly, we are positioning the Portfolio to perform
well in a near-term environment in which growth may be slowed and interest rates
fall to even lower levels. However, we also believe that recent actions by the
Federal Reserve Board are likely to ease investors' concerns about overseas
markets and their impact on our domestic economy. Accordingly, we expect greater
opportunities to arise among mortgage-backed and corporate bonds. By shifting
some of our resources into these asset classes, we believe we will be able to
continue to meet our goal of providing an attractive, steady yield while
minimizing risks and volatility.
As always, we appreciate the trust you have placed in us. We will continue to
pursue the Portfolio's stated investment objectives with discipline and tenacity
so that Panorama Series Fund, Inc. - Government Securities Portfolio remains an
effective instrument in helping you meet your financial goals...part of THE
RIGHT WAY TO INVEST.
- ----------------------------
1. It should be noted that the Fund does not have a policy of maintaining an
average portfolio duration.
5
<PAGE>
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MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the fiscal year that ended
December 31, 1998, Government Securities Portfolio achieved strong performance
in an economic environment characterized by strong domestic growth, low
inflation and global uncertainty. In light of these circumstances, the Manager
increased the Portfolio's exposure to longer-maturity government bonds, and
succeeded in increasing returns. The Portfolio's percentage of Treasury
securities and other government agency bonds was also increased to take
advantage of the rally that occurred in the government bond sector throughout
the year. The portfolio holdings, allocations and management strategies of the
Portfolio are subject to change.
- --------------------------------------------------------------------------------
COMPARING THE PORTFOLIO'S PERFORMANCE TO THE MARKET. The graph that follows
shows the performance of a hypothetical $10,000 investment in the Portfolio held
until December 31, 1998. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolio. If these charges and
expenses were taken into account, performance would be lower.
The Portfolio is compared to the performance of the Merrill Lynch Government
Master Index, which is a composite of both 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 that follows shows the effect of taxes.
The Portfolio's performance reflects the effects of the Portfolio's business and
operating expenses. While index comparisons may be useful to provide a benchmark
for the Portfolio's performance, it must be noted that the Portfolio's
investments are not limited to the investments in the index.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - Government Securities Portfolio and Merrill Lynch
Government Master Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA GOVERNMENT MERRILL LYNCH
SECURITIES PORTFOLIO GOVERNMENT MASTER INDEX
<S> <C> <C>
5/13/92 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
12/31/97 14,843 15,455
12/31/98 16,052 16,977
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(1)
1 YEAR 8.14% 5 YEAR 6.29% LIFE 7.39%
1. The inception date of the Portfolio is 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. The performance information in
the graph for the Merrill Lynch Government Master Index begins on 4/30/92.
Past performance is not predictive of future performance.
6
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
OBJECTIVE
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO seeks long-term
growth of capital by investing primarily in equity securities of worldwide
companies whose primary stock market is located outside the United States.
NARRATIVE BY JAMES BURNS, CO-PORTFOLIO MANAGER
Panorama International Equity Portfolio performed well overall during 1998. Some
of the gains achieved during the first half of the year were offset during the
third quarter when the Portfolio participated in sharp price declines in most of
the world's stock markets. However, there was a strong recovery in the last
quarter.
In fact, 1998 was a year of contrasts for the world's stock markets. Heightened
volatility once again demonstrated the benefits of broad diversification across
geographic regions. Although we saw continued good performance in the stock
markets of Europe during the first half of the year, markets in Japan, Southeast
Asia and Latin America continued to languish amid severe economic and financial
problems.
Investors in Europe appeared encouraged by strong economic growth, lower
interest rates and low inflation as individual nations and markets prepared for
the advent of European Monetary Union in 1999. European companies have been
restructuring to compete more effectively in the larger European marketplace,
enhancing shareholder value as a result. Although many analysts had warned that
the financial crisis in Southeast Asia and persistent recession in Japan were
likely to continue to adversely affect corporate earnings and economic growth,
European investors appeared unconcerned during the first half of the year.
Investor perception changed at mid-year when the "Asian contagion" struck
Russia, which devalued its currency and effectively defaulted on its government
bonds. The spread of the financial crisis to other emerging markets renewed
concerns that developed markets might suffer, and investors shifted their assets
away from any investments they perceived as risky. Small-capitalization stocks
were particularly hard hit, as were stocks of large companies that do business
in the emerging markets. Worldwide energy producers, agricultural companies,
commodities producers and manufacturers saw their earnings and stock prices
decline amid falling prices for raw materials. In addition, many financial
services companies with international loan portfolios were adversely affected.
This flight to quality contributed to a scarcity of capital in many markets,
especially Latin America, causing stock and bond prices there to plummet.
Because markets in Japan and Southeast Asia were already relatively depressed,
their stocks and bonds declined less severely during the correction than
financial assets in the United States and Europe.
Many of these concerns began to abate at the beginning of the fourth quarter.
Investors appeared encouraged when the International Monetary Fund, the U.S.
Federal Reserve Board and other nations' central banks announced measures
designed to stop the spreading financial crisis and stimulate global economic
growth. Perhaps most significant, the Japanese government announced a plan to
restructure its ailing banking system and boost its economy. With a possible end
to the financial crisis in sight, stock markets worldwide rebounded strongly,
gaining back much - but not all - of their previous declines.
Although we focus on individual companies rather than broad economic trends
affecting entire markets or industries, our company-by-company analysis led us
to opportunities concentrated in certain parts of the world. Over the last
twelve months, we increased our exposure to Europe to take advantage of the good
economic fundamentals in the region. At the same time, we reduced our exposure
to companies in Asia and Latin America because of their deteriorating prospects.
We had relatively few holdings in Japan, where our strategy has been to
concentrate on export companies doing the majority of their business outside the
country.
Just as our bottom-up investment approach led us to focus on certain geographic
regions, we also found opportunities concentrated in individual industries. For
example, we found a number of attractive stocks from the retailing, publishing
and telecommunications industries, which were consistently strong performers
during the year. The reason for their strength has been the consistency and
quality of their earnings growth. European financial services firms performed
particularly well during the first half of the year, primarily because they are
enjoying strong growth from increased participation in stocks and bonds among
their customers, including pension funds and retirement plans. However,
financial stocks with international loan portfolios were hard-hit after the
Russian debt crisis, providing a vivid reminder that their stock prices are also
dependent on market conditions.
7
<PAGE>
Looking forward, we are cautiously optimistic. While we are encouraged by the
efforts of the world's governments and central banks to stop the spread of the
global financial crisis, it is too soon to determine whether lower interest
rates and economic stimulus packages will be enough to avoid recessions in some
of the world's major economies. With this in mind, we are focusing primarily on
companies with above-average earnings growth. We are also carefully watching the
situation in Asia, where we're finding attractive investment values in hard-hit
markets. Our diligent approach to investing in companies around the world should
help Panorama International Equity Portfolio maintain its focus on well-financed
growth companies that we believe can prosper in good economic times and bad, and
help the Portfolio remain an important part of THE RIGHT WAY TO INVEST.
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the fiscal year that ended
December 31, 1998, International Equity Portfolio performed well, providing
returns consistent with those of its unmanaged benchmark, the Morgan Stanley
Capital International Europe, Australia & Far East (EAFE) Index. Some of the
gains achieved during the first half of the year were offset during the third
quarter when the Portfolio participated in sharp price declines in most of the
world's stock markets. However, there was a strong recovery in the last quarter.
The Manager's company-by-company analysis did lead to opportunities concentrated
in certain parts of the world, such as Europe, which demonstrated sound economic
fundamentals. At the same time, exposure was reduced to companies in Asia and
Latin America because of their deteriorating prospects. The Portfolio's
holdings, allocations and management strategies are subject to change.
- --------------------------------------------------------------------------------
COMPARING THE PORTFOLIO'S PERFORMANCE TO THE MARKET. The graph that follows
shows the performance of a hypothetical $10,000 investment in the Portfolio held
until December 31, 1998. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolio. If these charges and
expenses were taken into account, performance would be lower.
The Portfolio is compared to the Morgan Stanley Capital International EAFE
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. Index performance reflects the reinvestment of dividends but
does not consider the effect of capital gains or transaction costs, and none of
the data that follows shows the effect of taxes. The Portfolio's performance
reflects the effects of the Portfolio's business and operating expenses. While
index comparisons may be useful to provide a benchmark for the Portfolio's
performance, it must be noted that the Portfolio's investments are not limited
to the investments in the index.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - International Equity Portfolio and
Morgan Stanley Capital International Europe, Australia & Far East (EAFE) Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA
INTERNATIONAL MORGAN STANLEY CAPITAL
INTERNATIONAL EAFE
EQUITY PORTFOLIO INDEX
<S> <C> <C>
5/13/92 $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
12/31/97 $15,965 $17,298
12/31/98 $19,062 $20,815
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(1)
1 YEAR 19.40% 5 YEAR 10.34% LIFE 10.21%
1. The inception date of the Portfolio is 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. The performance information in
the graph for the Morgan Stanley Capital International EAFE Index begins on
4/30/92.
Past performance is not predictive of future performance.
8
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN PORTFOLIOS
OBJECTIVE
PANORAMA SERIES FUND, INC. - LIFESPAN 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.
PANORAMA SERIES FUND, INC. - LIFESPAN 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.
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO seeks high
current income, with opportunities for capital appreciation by investing in a
strategically allocated portfolio consisting primarily of bonds.
NARRATIVE BY THE PORTFOLIO MANAGEMENT TEAM
1998 was a year of dramatic contrasts for the world's stock and bond markets.
Heightened volatility in many markets once again demonstrated the benefits of
broad diversification among asset classes, geographic regions and investment
styles. We are pleased that the LifeSpan Portfolios' diversified investment
approach helped dampen some of the markets' volatility for our shareholders.
Despite earnings disappointments for many multinational companies based in the
United States, we saw continued good performance in the stock markets of the
United States and Europe during the first half of the year. Investors in both
regions appeared encouraged by strong economic growth and low inflation.
Although many analysts warned that the financial crisis in Southeast Asia and
persistent recession in Japan were likely to continue to adversely affect
corporate earnings and global economic growth, investors in the United States
and Europe appeared unconcerned.
Investor perception changed at mid-year when the "Asian contagion" struck
Russia, which effectively defaulted on its government bonds. The spread of the
financial crisis to other emerging markets renewed concerns that developed
markets might suffer, and investors shifted their assets away from any
investments they perceived as risky. Small-capitalization stocks,
emerging-market bonds and high-yield corporate bonds were particularly hard hit.
In the United States, large-capitalization stocks - which led the market's rise
over the past three years - fell sharply during the third quarter of 1998.
Stocks of big companies that do business in overseas markets led the decline.
Worldwide energy producers, agricultural companies, commodities producers and
manufacturers saw their earnings and stock prices decline amid falling prices
for raw materials. In addition, many financial services companies with
international loan portfolios were adversely affected.
U.S. Treasury bonds - considered a safe haven by many investors - represented
one of the few financial assets to benefit in this environment. Other types of
bonds did not fare as well. High-yield corporate bond prices fell sharply when
investors, unwilling to assume the credit risks that accompany high yields,
attempted to sell their holdings.
This flight to quality contributed to a scarcity of capital in many markets,
especially Latin America, causing stock and bond prices there to plummet.
Because markets in Japan and Southeast Asia were already relatively depressed,
their stocks and bonds declined less severely during the correction than
financial assets in the United States and Europe.
Many of these concerns began to ease at the beginning of the fourth quarter.
Investors appeared encouraged when the International Monetary Fund, the U.S.
Federal Reserve Board and other nations' central banks announced measures
designed to stop the spreading financial crisis and stimulate global economic
growth. Perhaps most significant, the Japanese government announced a plan to
restructure its ailing banking system and boost its economy. With a possible end
to the financial crisis in sight, stock markets worldwide rebounded strongly,
reversing much -- but not all -- of their previous declines.
The Capital Appreciation Portfolio benefited from its holdings of large-cap
stocks in the United States. However, consistent with lackluster performance in
certain market sectors, the Portfolio's holdings of small-capitalization and
value-oriented stocks constrained its overall performance. Performance of the
Balanced Portfolio, which also participated in the gains of large domestic and
international stocks, was enhanced by its holdings of U.S. Treasury securities,
which performed well during the year. Finally, the Diversified Income Portfolio
benefited from the rally of U.S. Treasury securities, but its overall
performance suffered because of exposure to corporate and emerging-markets debt.
9
<PAGE>
Looking forward, we are cautiously optimistic. While economic weakness may
persist over the next term, we believe that global economies and markets should
recover over the longer term. Our diligent approach to investing in diversified
portfolios of stocks and bonds should help Panorama LifeSpans Portfolios
continue to provide participation in rising markets while diminishing the brunt
of market declines. In other words, it remains an important part of THE RIGHT
WAY TO INVEST.
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PERFORMANCE.
LIFESPAN CAPITAL APPRECIATION PORTFOLIO
During the fiscal year that ended December 31, 1998, the Portfolio's positive
performance was primarily affected by the strength of its international
investments. The Manager's company-by-company analysis lead to opportunities
concentrated in certain parts of the world, such as Europe, which demonstrated
sound economic fundamentals. At the same time, exposure was reduced to companies
in Asia and Latin America because of their deteriorating prospects. The
Portfolio's investments in government bonds, specifically Treasury securities
and other government agency bonds, performed well. The Portfolio's allocation to
this area was increased to take advantage of the rally that occurred in the
government bond sector throughout the year. The Portfolio's domestic equity
holdings underperformed due to the exceptionally difficult environment for the
U.S. stock market, in particular value and small-cap stocks. The portfolio
holdings, allocations and management strategies are subject to change.
LIFESPAN BALANCED PORTFOLIO
During the fiscal year that ended December 31, 1998, performance of the Balanced
Portfolio was affected by the uncertainty in the global markets. However,
overall, the Portfolio did participate in the gains of large domestic and
international stocks, and performance was enhanced by the Portfolio's holdings
of U.S. Treasury securities. Over the period, the U.S. government bond market
proved to be relatively strong. As a result, the Fund's large percentage of U.S.
Treasury securities and cash instruments, and to a lesser extent,
investment-grade corporate bonds, helped to limit risks and losses. The Manager
also maintained a relatively long average duration in an environment
distinguished by steadily declining interest rates. The portfolio holdings,
allocations and management strategies are subject to change.
LIFESPAN DIVERSIFIED INCOME PORTFOLIO
The Diversified Income Portfolio's performance during the fiscal year that ended
December 31, 1998, can be primarily attributed to its investments in the
government/corporate sector, which was the largest allocation in the portfolio.
The Portfolio benefited from the rally of U.S. Treasury securities, but its
overall performance suffered because of exposure to corporate and
emerging-markets debt. In the high yield portion of the portfolio, bright spots
included the Portfolio's focus on cable/media investments, as well as its
relative lack of holdings in the financial and energy sectors of the market. The
Portfolio's significant allocation to telecommunications hurt returns, as these
issues performed poorly. The portfolio holdings, allocations and management
strategies are subject to change.
- --------------------------------------------------------------------------------
COMPARING EACH PORTFOLIO'S PERFORMANCE TO THE MARKET. The graphs that follow
show the performance of hypothetical $10,000 investments in the Portfolios held
until December 31, 1998. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolios. If these charges and
expenses were taken into account, performance would be lower.
LifeSpan Capital Appreciation Portfolio's performance is compared to the
performance of the S&P 500 Index and the Wilshire 5000 Index. 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
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.
LifeSpan Balanced Portfolio's performance is compared to the performance of
the Lehman Brothers Corporate and Government Bond Index and the S&P 500 Index.
The Lehman Brothers Corporate and Government Bond Index is comprised of the
Government and Corporate Bond Indices, which include U.S. Treasury and
government agency securities, corporate, and Yankee bonds.
LifeSpan Diversified Income Portfolio's performance is compared to the
performance of the Lehman Brothers Intermediate Government and Corporate Bond
Index, which includes fixed rate debt issues rated investment grade or higher by
Moody's, S&P or Fitch, in that order.
10
<PAGE>
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
that follows shows the effect of taxes. The Portfolios' performance reflects the
effects of the Portfolio's business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Portfolios'
performance, it must be noted that the Portfolios' investments are not limited
to the investments in the indices.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - LifeSpan Capital Appreciation Portfolio, S&P 500
Index and Wilshire 5000 Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA LIFESPAN S&P 500 WILSHIRE
CAPITAL
APPRECIATION INDEX 5000 INDEX
<S> <C> <C> <C>
09/1/95 $10,000 $10,000 $10,000
12/31/95 $10,665 $11,049 $10,812
12/31/96 $12,582 $13,584 $12,849
12/31/97 $14,159 $18,114 $16,597
12/31/98 $15,077 $23,290 $20,202
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(1)
1 YEAR 6.49% LIFE 13.11%
1. The inception date of the Portfolio is 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. The performance information in
the graph for both indices begins on 8/31/95.
Past performance is not predictive of future performance.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - LifeSpan Balanced Portfolio,
S&P 500 Index and Lehman Brothers Corporate/Government Bond Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA LIFESPAN S&P 500 LEHMAN BROTHERS
CORPORATE/GOVERNMENT BOND
BALANCED PORTFOLIO INDEX INDEX
<S> <C> <C> <C>
09/1/95 $10,000 $10,000 $10,000
12/31/95 $10,608 $11,049 $10,572
12/31/96 $12,027 $13,584 $10,879
12/31/97 $13,495 $18,114 $11,941
12/31/98 $14,328 $23,290 $13,072
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(2)
1 YEAR 6.17% LIFE 11.39%
11
<PAGE>
2. The inception date of the Portfolio is 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. The performance information in
the graph for both indices begins on 8/31/95.
Past performance is not predictive of future performance.
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Panorama Series Fund, Inc. - LifeSpan Diversified Income Portfolio and
Lehman Brothers Intermediate Government/Corporate Bond Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PANORAMA LIFESPAN
DIVERSIFIED LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CORPORATE BOND
INCOME PORTFOLIO INDEX
<S> <C> <C>
09/1/95 $10,000 $10,000
12/31/95 $10,569 $10,427
12/31/96 $11,301 $10,849
12/31/97 $12,715 $11,702
12/31/98 $13,335 $12,690
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF THE PORTFOLIO AT 12/31/98(3)
1 YEAR 4.88% LIFE 9.02%
3. The inception date of the Portfolio is 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. The performance information in
the graph for the Lehman Brothers Intermediate Government/Corporate Bond Index
begins on 8/31/95.
Past performance is not predictive of future performance.
12
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 57.2%
- ---------------------------------------------------------------
CAPITAL GOODS - 6.3%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE - 1.5%
General Dynamics Corp. 235,200 $ 13,788,600
- ---------------------------------------------------------------
Lockheed Martin Corp. 70,251 5,953,772
--------------
19,742,372
- ---------------------------------------------------------------
INDUSTRIAL SERVICES - 0.8%
Knoll, Inc.(1) 55,300 1,638,262
- ---------------------------------------------------------------
Viad Corp. 313,100 9,510,412
--------------
11,148,674
- ---------------------------------------------------------------
MANUFACTURING - 4.0%
Herman Miller, Inc. 136,400 3,665,750
- ---------------------------------------------------------------
Ingersoll-Rand Co. 181,700 8,528,544
- ---------------------------------------------------------------
PACCAR, Inc. 116,800 4,803,400
- ---------------------------------------------------------------
Textron, Inc. 244,000 18,528,750
- ---------------------------------------------------------------
United Technologies Corp. 169,300 18,411,375
--------------
53,937,819
- ---------------------------------------------------------------
CONSUMER CYCLICALS - 6.7%
- ---------------------------------------------------------------
AUTOS & HOUSING - 4.2%
Federal-Mogul Corp. 236,100 14,047,950
- ---------------------------------------------------------------
Fleetwood Enterprises, Inc. 82,300 2,859,925
- ---------------------------------------------------------------
Kaufman & Broad Home Corp. 80,300 2,308,625
- ---------------------------------------------------------------
Maytag Corp. 309,900 19,291,275
- ---------------------------------------------------------------
Owens Corning 148,900 5,276,644
- ---------------------------------------------------------------
USG Corp. 166,300 8,470,906
- ---------------------------------------------------------------
Whirlpool Corp. 72,200 3,998,075
--------------
56,253,400
- ---------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.2%
Hasbro, Inc. 77,000 2,781,625
- ---------------------------------------------------------------
RETAIL: GENERAL - 2.2%
Dayton Hudson Corp. 184,500 10,009,125
- ---------------------------------------------------------------
Federated Department Stores,
Inc.(1) 128,500 5,597,781
- ---------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 83,800 1,157,487
- ---------------------------------------------------------------
Gucci Group NV 81,800 3,977,525
- ---------------------------------------------------------------
K Mart Corp.(1) 154,700 2,368,844
- ---------------------------------------------------------------
Nordstrom, Inc. 85,300 2,958,844
- ---------------------------------------------------------------
Shaw Industries, Inc. 133,800 3,244,650
--------------
29,314,256
- ---------------------------------------------------------------
RETAIL: SPECIALTY - 0.1%
Payless ShoeSource, Inc.(1) 39,800 1,885,525
</TABLE>
13
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES - 7.7%
- ---------------------------------------------------------------
BEVERAGES - 0.8%
Anheuser-Busch Cos., Inc. 166,100 $ 10,900,312
- ---------------------------------------------------------------
CONSUMER SERVICES - 0.3%
Hertz Corp., Cl. A 95,000 4,334,375
- ---------------------------------------------------------------
FOOD - 1.4%
General Mills, Inc. 116,400 9,050,100
- ---------------------------------------------------------------
IBP, Inc. 353,600 10,298,600
--------------
19,348,700
- ---------------------------------------------------------------
FOOD & DRUG RETAILERS - 2.8%
Albertson's, Inc. 174,600 11,119,837
- ---------------------------------------------------------------
Kroger Co.(1) 252,200 15,258,100
- ---------------------------------------------------------------
Safeway, Inc.(1) 184,400 11,236,875
--------------
37,614,812
- ---------------------------------------------------------------
HOUSEHOLD GOODS - 2.4%
Dial Corp. (The) 372,000 10,741,500
- ---------------------------------------------------------------
Fort James Corp. 182,875 7,315,000
- ---------------------------------------------------------------
Premark International, Inc. 411,700 14,255,112
--------------
32,311,612
- ---------------------------------------------------------------
ENERGY - 0.5%
- ---------------------------------------------------------------
OIL-DOMESTIC - 0.5%
Exxon Corp. 99,600 7,283,250
- ---------------------------------------------------------------
FINANCIAL - 11.0%
- ---------------------------------------------------------------
BANKS - 2.5%
Bank One Corp. 184,300 9,410,819
- ---------------------------------------------------------------
BankBoston Corp. 249,900 9,730,481
- ---------------------------------------------------------------
First Union Corp. 237,400 14,436,887
--------------
33,578,187
- ---------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.0%
Citigroup, Inc. 296,700 14,686,650
- ---------------------------------------------------------------
Fannie Mae 168,200 12,446,800
--------------
27,133,450
- ---------------------------------------------------------------
INSURANCE - 5.8%
Allstate Corp. 142,600 5,507,925
- ---------------------------------------------------------------
American General Corp. 122,200 9,531,600
- ---------------------------------------------------------------
American International Group, Inc. 126,100 12,184,412
- ---------------------------------------------------------------
Cigna Corp. 175,900 13,599,269
- ---------------------------------------------------------------
Conseco, Inc. 265,800 8,123,513
- ---------------------------------------------------------------
Equitable Cos., Inc. 46,800 2,708,550
- ---------------------------------------------------------------
Hartford Financial Services Group,
Inc. 108,500 5,953,938
- ---------------------------------------------------------------
Jefferson-Pilot Corp. 113,600 8,520,000
- ---------------------------------------------------------------
Transamerica Corp. 66,400 7,669,200
</TABLE>
14
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
INSURANCE (CONTINUED)
Travelers Property Casualty Corp.,
Cl. A 115,200 $ 3,571,200
--------------
77,369,607
- ---------------------------------------------------------------
SAVINGS & LOANS - 0.7%
Golden West Financial Corp. 98,800 9,058,725
- ---------------------------------------------------------------
HEALTHCARE - 4.4%
- ---------------------------------------------------------------
HEALTHCARE/DRUGS - 2.2%
Amgen, Inc.(1) 160,400 16,771,825
- ---------------------------------------------------------------
Genzyme Corp. (General Division)(1) 267,960 13,331,010
--------------
30,102,835
- ---------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
2.2%
Bard (C.R.), Inc. 248,100 12,280,950
- ---------------------------------------------------------------
Tenet Healthcare Corp.(1) 251,920 6,612,900
- ---------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 113,900 3,367,169
- ---------------------------------------------------------------
WellPoint Health Networks, Inc.(1) 89,900 7,821,300
--------------
30,082,319
- ---------------------------------------------------------------
TECHNOLOGY - 11.1%
- ---------------------------------------------------------------
COMPUTER HARDWARE - 8.0%
3Com Corp.(1) 251,000 11,247,938
- ---------------------------------------------------------------
Apple Computer, Inc.(1) 272,000 11,135,000
- ---------------------------------------------------------------
Compaq Computer Corp. 610,300 25,594,456
- ---------------------------------------------------------------
International Business Machines
Corp. 168,300 31,093,425
- ---------------------------------------------------------------
Lexmark International Group, Inc.,
Cl. A(1) 109,000 10,954,500
- ---------------------------------------------------------------
Seagate Technology, Inc.(1) 230,200 6,963,550
- ---------------------------------------------------------------
Storage Technology Corp. (New)(1) 289,700 10,302,456
--------------
107,291,325
- ---------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 1.4%
First Data Corp. 156,200 4,949,588
- ---------------------------------------------------------------
Network Associates, Inc.(1) 199,900 13,243,375
--------------
18,192,963
- ---------------------------------------------------------------
PHOTOGRAPHY - 1.7%
Eastman Kodak Co. 64,300 4,629,600
- ---------------------------------------------------------------
Xerox Corp. 151,100 17,829,800
--------------
22,459,400
- ---------------------------------------------------------------
TELECOMMUNICATIONS - 5.9%
- ---------------------------------------------------------------
TELEPHONE UTILITIES - 3.1%
Bell Atlantic Corp. 278,100 15,799,556
- ---------------------------------------------------------------
Century Telephone Enterprises, Inc. 79,900 5,393,250
- ---------------------------------------------------------------
U S West, Inc. 317,100 20,492,588
--------------
41,685,394
- ---------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY -
2.8%
ALLTELL Corp. 200,700 12,004,369
</TABLE>
15
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS/TECHNOLOGY
(CONTINUED)
AT&T Corp. 343,400 $ 25,840,850
--------------
37,845,219
- ---------------------------------------------------------------
TRANSPORTATION - 0.4%
- ---------------------------------------------------------------
AIR TRANSPORTATION - 0.4%
AMR Corp.(1) 51,600 3,063,750
- ---------------------------------------------------------------
Delta Air Lines, Inc. 40,400 2,100,800
--------------
5,164,550
- ---------------------------------------------------------------
UTILITIES - 3.2%
- ---------------------------------------------------------------
ELECTRIC UTILITIES - 2.3%
CalEnergy, Inc.(1) 136,400 4,731,375
- ---------------------------------------------------------------
FPL Group, Inc. 112,100 6,908,163
- ---------------------------------------------------------------
Houston Industries, Inc. 264,600 8,500,275
- ---------------------------------------------------------------
Montana Power Co. 184,600 10,441,438
--------------
30,581,251
- ---------------------------------------------------------------
GAS UTILITIES - 0.9%
Columbia Energy Group 204,650 11,818,538
--------------
Total Common Stocks (Cost
$639,078,833) 769,220,495
- ---------------------------------------------------------------
OTHER SECURITIES - 0.3%
- ---------------------------------------------------------------
Ingersoll-Rand International
Finance Corp. I, 6.22% Preferred
Redeemable Increased Dividend
Equity Securities, 5/16/01(2) (Cost
$4,250,000) 170,000 4,420,000
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------
ASSET-BACKED SECURITIES - 0.6%
- ---------------------------------------------------------------
IROQUOIS Trust, Asset-Backed
Amortizing Nts., Series 1997-2, Cl.
A, 6.752%, 6/25/07(2) $4,500,000 4,521,094
- ---------------------------------------------------------------
Olympic Automobile Receivables
Trust, Automobile
Receivables-Backed Nts., Series
1997-A, Cl. A-5, 6.80%, 2/15/05 4,050,000 4,110,750
--------------
Total Asset-Backed Securities (Cost
$8,544,073) 8,631,844
- ---------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 4.6%
- ---------------------------------------------------------------
Chase Commercial Mortgage
Securities Corp., Commercial Mtg.
Obligations, Series 1996-1, Cl. A2,
7.60%, 3/18/06 6,000,000 6,496,875
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation
Certificates, Series 1711, Cl. EA,
7%, 3/15/24 3,750,000 3,835,538
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Gtd. Multiclass Mtg. Participation
Certificates:
6%, 3/1/09 2,866,534 2,884,937
Series 1843, Cl. VB, 7%, 4/15/03 3,578,600 3,654,645
Series 1849, Cl. VA, 6%, 12/15/10 3,729,761 3,762,397
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped Mtg.-Backed
Securities Series 1583, Cl. IC,
7.03%, 1/15/20(3) 7,240,399 710,464
</TABLE>
16
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS
(CONTINUED)
- ---------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 $2,077,115 $ 2,083,679
6.50%, 4/1/24-4/1/26 2,866,615 2,887,293
7%, 4/1/00 518,099 517,608
7.50%, 5/1/07-12/1/08 1,039,517 1,069,655
8.00%, 3/1/17-6/1/17 173,239 180,712
- ---------------------------------------------------------------
Federal National Mortgage Assn.,
Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation
Certificates, Trust 1992-15, Cl.
KZ, 7%, 2/25/22 2,416,713 2,421,233
- ---------------------------------------------------------------
Federal National Mortgage Assn.,
Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates,
Trust 1993-190, Cl. Z, 5.85%,
7/25/08 1,194,471 1,192,226
- ---------------------------------------------------------------
Federal National Mortgage Assn.,
Interest-Only Stripped Mtg.-Backed
Security, Trust 1993-223, Cl. PM,
7.56%, 10/25/23(3) 6,249,544 824,128
- ---------------------------------------------------------------
GE Capital Mortgage Services, Inc.,
Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates,
Series 1994-7, Cl. A18, 6%, 2/25/09 4,707,789 4,497,398
- ---------------------------------------------------------------
General National Mortgage Assn.:
6.50%, 4/15/26 4,280,346 4,326,276
7%, 11/15/08-1/15/24 2,064,297 2,115,816
7.50%, 1/15/09-6/15/24 4,683,690 4,831,281
8%, 5/15/17 811,523 850,681
- ---------------------------------------------------------------
IMC Home Equity Trust, Asset-Backed
Home Equity Securities, Series
1998-3, Cl. A5, 6.36%, 8/20/22(4) 3,400,000 3,402,125
- ---------------------------------------------------------------
Norwest Asset Securities Corp.,
Mtg. Pass-Through Certificates,
Series 1997-14, Cl. A-3, 6.75%,
10/25/27 5,000,000 4,993,750
- ---------------------------------------------------------------
Prudential Home Mortgage Securities
Co., Sub. Fixed Rate Mtg.
Securities, Real Estate Mtg.
Investment Conduit Pass-Through
Certificates, Series 1993-L, Cl.
1B2, 6.641%, 12/25/23(2)(4) 1,900,000 1,898,219
- ---------------------------------------------------------------
Residential Funding Mortgage
Securities I, Inc., Mtg.
Pass-Through Certificates, Series
1998-S4, Cl. M1, 6.50%, 2/25/13 2,038,732 2,003,373
--------------
Total Mortgage-Backed Obligations
(Cost $59,821,727) 61,440,309
- ---------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 4.9%
- ---------------------------------------------------------------
U.S. Treasury Bonds, 6%, 2/15/26(5) 38,250,000 41,752,285
- ---------------------------------------------------------------
U.S. Treasury Bonds, STRIPS,
5.593%, 11/15/18(6) 50,000,000 16,661,650
- ---------------------------------------------------------------
U.S. Treasury Bonds, STRIPS,
7.835%, 5/15/15(6) 2,250,000 918,718
- ---------------------------------------------------------------
U.S. Treasury Nts., 6.125%,
8/15/07(5) 5,350,000 5,848,219
--------------
Total U.S. Government Obligations
(Cost $64,647,784) 65,180,872
- ---------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS -
0.1%
- ---------------------------------------------------------------
United Mexican States Bonds, 6.97%,
8/12/00 (Cost $1,731,367) 1,750,000 1,705,156
- ---------------------------------------------------------------
NON-COVERTIBLE CORPORATE BONDS AND
NOTES - 17.5%
- ---------------------------------------------------------------
BASIC MATERIALS - 0.9%
- ---------------------------------------------------------------
CHEMICALS - 0.4%
Morton International, Inc., 9.25%
Credit Sensitive Nts., 6/1/20 2,512,000 3,419,229
</TABLE>
17
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------
CHEMICALS (CONTINUED)
PPG Industries, Inc., 9% Debs.,
5/1/21 $1,190,000 $ 1,522,227
--------------
4,941,456
- ---------------------------------------------------------------
METALS - 0.3%
Alcan Aluminum Ltd., 9.625% Debs.,
7/15/19 4,000,000 4,275,280
- ---------------------------------------------------------------
PAPER - 0.2%
Donohue Forest Products, Inc.,
7.625% Gtd. Sr. Nts., 5/15/07 2,500,000 2,743,845
- ---------------------------------------------------------------
CAPITAL GOODS - 3.3%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE - 0.5%
Northwest Airlines Corp., 8.375%
Unsec. Nts., 3/15/04 4,250,000 4,329,802
- ---------------------------------------------------------------
Raytheon Co., 6.45% Nts., 8/15/02 2,500,000 2,574,637
--------------
6,904,439
- ---------------------------------------------------------------
INDUSTRIAL SERVICES - 2.1%
Fred Meyer, Inc., 7.375% Sr. Nts.,
3/1/05 6,750,000 7,156,404
- ---------------------------------------------------------------
Interface, Inc., 7.30% Sr. Nts.,
4/1/08 2,000,000 1,977,098
- ---------------------------------------------------------------
Norse CBO Ltd., 6.515%
Collateralized Bond Obligations,
Series 1A, Cl. A3, 8/13/10(2) 4,000,000 3,955,000
- ---------------------------------------------------------------
Owens-Illinois, Inc., 7.15% Sr.
Nts., 5/15/05 5,000,000 5,075,165
- ---------------------------------------------------------------
Sun Co., Inc., 7.95% Debs.,
12/15/01 4,000,000 4,221,468
- ---------------------------------------------------------------
Tyco International Group SA, 6.125%
Nts., 11/1/08(7) 2,500,000 2,520,830
- ---------------------------------------------------------------
USI American Holdings, Inc., 7.25%
Sr. Nts., Series B, 12/1/06 2,860,000 2,834,000
--------------
27,739,965
- ---------------------------------------------------------------
MANUFACTURING - 0.7%
Federal-Mogul Corp., 7.50% Nts.,
7/1/04 2,150,000 2,177,941
- ---------------------------------------------------------------
Norsk Hydro AS, 8.75% Bonds,
10/23/01 1,500,000 1,610,625
- ---------------------------------------------------------------
U.S. Filter Corp., 6.375% Bonds,
5/15/01 5,500,000 5,463,496
--------------
9,252,062
- ---------------------------------------------------------------
CONSUMER CYCLICALS - 0.6%
- ---------------------------------------------------------------
AUTOS & HOUSING - 0.2%
Black & Decker Corp., 6.625% Nts.,
11/15/00 2,700,000 2,746,170
- ---------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.1%
Felcor Suites LP, 7.375% Sr. Nts.,
10/1/04 2,000,000 1,898,252
- ---------------------------------------------------------------
MEDIA - 0.1%
Reed Elsevier, Inc., 6.625% Nts.,
10/15/23(7) 1,600,000 1,577,376
- ---------------------------------------------------------------
RETAIL: GENERAL - 0.2%
Price/Costco Cos., Inc., 7.125% Sr.
Nts., 6/15/05 2,000,000 2,153,018
- ---------------------------------------------------------------
CONSUMER STAPLES - 2.9%
- ---------------------------------------------------------------
ENTERTAINMENT - 0.8%
Paramount Communications, Inc.,
7.50% Sr. Nts., 1/15/02 4,250,000 4,475,263
- ---------------------------------------------------------------
Tricon Global Restaurants, Inc.,
7.45% Sr. Unsec. Nts., 5/15/05 4,650,000 4,798,819
- ---------------------------------------------------------------
Viacom, Inc., 6.75% Sr. Unsec.
Nts., 1/15/03 1,500,000 1,545,595
--------------
10,819,677
</TABLE>
18
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
FOOD - 1.3%
CPC International, Inc., 6.15%
Unsec. Nts., Series C, 1/15/06 $2,000,000 $ 2,084,292
- ---------------------------------------------------------------
Dole Food Distributing, Inc., 6.75%
Nts., 7/15/00 3,500,000 3,534,048
- ---------------------------------------------------------------
Grand Metro Inventory Corp., 7.125%
Nts., 9/15/04 6,115,000 6,571,956
- ---------------------------------------------------------------
RACERS-Kellogg-98-1, 5.75% Nts.,
2/2/01(7) 5,000,000 5,050,210
--------------
17,240,506
- ---------------------------------------------------------------
HOUSEHOLD GOODS - 0.8%
Dial Corp. (The), 5.89% Medium-Term
Nts., Series A, 10/22/01 3,250,000 3,209,710
- ---------------------------------------------------------------
Fort James Corp.:
6.234% Nts., 3/15/01 1,750,000 1,774,208
6.875% Sr. Nts., 9/15/07 5,000,000 5,205,050
- ---------------------------------------------------------------
Procter & Gamble Co., 9.36% Debs.,
Series A, 1/1/21 750,000 997,114
--------------
11,186,082
- ---------------------------------------------------------------
ENERGY - 2.3%
- ---------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 1.9%
Chesapeake Energy Corp., 7.875% Sr.
Nts., Series B, 3/15/04 3,250,000 2,583,750
- ---------------------------------------------------------------
Coastal Corp., 8.125% Sr. Nts.,
9/15/02 3,190,000 3,419,173
- ---------------------------------------------------------------
Colorado Interstate Gas Corp., 10%
Sr. Debs., 6/15/05 455,000 560,235
- ---------------------------------------------------------------
Columbia Gas System, Inc., 6.80%
Nts., Series C, 11/28/05 2,000,000 2,114,530
- ---------------------------------------------------------------
Gulf Canada Resources Ltd.:
8.25% Sr. Nts., 3/15/17 2,000,000 1,808,750
9% Debs., 8/15/99 1,750,000 1,758,750
- ---------------------------------------------------------------
HNG Internorth/Enron Corp., 9.625%
Debs., 3/15/06 700,000 858,101
- ---------------------------------------------------------------
Louisiana Land & Exploration Co.,
7.65% Debs., 12/1/23 4,000,000 4,325,384
- ---------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50%
Nts., 3/31/07 3,600,000 3,835,660
- ---------------------------------------------------------------
Petroliam Nasional Berhad, 6.875%
Nts., 7/1/03(2) 2,500,000 2,138,390
- ---------------------------------------------------------------
TransCanada PipeLines Ltd., 9.875%
Debs., 1/1/21 2,250,000 2,885,782
--------------
26,288,505
- ---------------------------------------------------------------
OIL - DOMESTIC - 0.4%
Norcen Energy Resources Ltd., 6.80%
Debs., 7/2/02 4,500,000 4,551,250
- ---------------------------------------------------------------
Texaco Capital, Inc., 8.875% Gtd.
Debs., 9/1/21 500,000 648,127
--------------
5,199,377
- ---------------------------------------------------------------
FINANCIAL - 4.3%
- ---------------------------------------------------------------
BANKS - 1.1%
BankAmerica Corp. (New), 7.75% Sub.
Nts., 7/15/02 1,250,000 1,341,900
- ---------------------------------------------------------------
Capital One Bank, Inc., 6.375% Sr.
Nts., 2/15/03 2,350,000 2,262,141
- ---------------------------------------------------------------
Chase Manhattan Corp. (New),
10.125% Sub. Nts., 11/1/00 1,000,000 1,079,609
- ---------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc.,
9.90% Sub. Nts., 6/15/01 750,000 822,502
- ---------------------------------------------------------------
Greenpoint Bank (Brooklyn New
York), 6.70% Sr. Medium-Term Bank
Nts., 7/15/02 5,000,000 5,134,050
- ---------------------------------------------------------------
People's Bank of Bridgeport
(Connecticut), 7.20% Sub. Nts.,
12/1/06 4,000,000 4,244,048
--------------
14,884,250
</TABLE>
19
<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 - 1.1%
American General Finance Corp.,
5.875% Sr. Nts., 7/1/00 $1,500,000 $ 1,508,329
- ---------------------------------------------------------------
American General Institutional
Capital B, 8.125% Bonds, Series B,
3/15/46(7) 2,750,000 3,174,319
- ---------------------------------------------------------------
Capital One Financial Corp., 7.25%
Nts., 12/1/03 2,300,000 2,263,757
- ---------------------------------------------------------------
Countrywide Home Loans, Inc., 6.05%
Medium-Term Nts., Series D, 3/1/01 3,070,000 3,082,765
- ---------------------------------------------------------------
Fleet Mtg. Group, Inc., 6.50% Nts.,
9/15/99 750,000 754,206
- ---------------------------------------------------------------
General Motors Acceptance Corp.,
5.625% Nts., 2/15/01 1,200,000 1,204,284
- ---------------------------------------------------------------
Household Finance Corp., 8.95%
Debs., 9/15/99 1,200,000 1,227,384
- ---------------------------------------------------------------
PHH Corp., 6.50% Nts., 2/1/00 1,250,000 1,249,856
--------------
14,464,900
- ---------------------------------------------------------------
INSURANCE - 1.3%
Conseco Financing Trust III, 8.796%
Bonds, 4/1/27 2,750,000 2,638,089
- ---------------------------------------------------------------
Conseco, Inc., 6.40% Nts., 6/15/01 3,000,000 2,877,171
- ---------------------------------------------------------------
Equitable Life Assurance Society
(U.S.A.), 6.95% Surplus Nts.,
12/1/05(7) 2,000,000 2,118,334
- ---------------------------------------------------------------
GenAmerica Capital I, 8.525% Nts.,
6/30/27(7) 3,250,000 3,311,396
- ---------------------------------------------------------------
Life Re Capital Trust I, 8.72%
Nts., 6/15/27(7) 2,500,000 2,909,330
- ---------------------------------------------------------------
Travelers Property Casualty Corp.,
6.75% Nts., 4/15/01 3,500,000 3,584,227
--------------
17,438,547
- ---------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS -
0.8%
Chelsea GCA Realty Partner, Inc.,
7.75% Unsec. Nts., 1/26/01 5,520,000 5,484,683
- ---------------------------------------------------------------
First Industrial LP, 7.15% Bonds,
5/15/27 3,000,000 3,025,341
- ---------------------------------------------------------------
Simon DeBartolo Group, Inc., 6.625%
Nts., 6/15/03 3,000,000 2,969,067
--------------
11,479,091
- ---------------------------------------------------------------
HEALTHCARE - 0.3%
- ---------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
0.3%
Tenet Healthcare Corp.:
8% Sr. Nts., 1/15/05 1,500,000 1,554,231
8.625% Sr. Unsec. Nts., 12/1/03 2,000,000 2,112,402
--------------
3,666,633
- ---------------------------------------------------------------
TECHNOLOGY - 0.2%
- ---------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 0.2%
Electric Data Systems Corp., 7.125%
Nts., 5/15/05(7) 2,000,000 2,177,722
- ---------------------------------------------------------------
TELECOMMUNICATIONS - 0.3%
- ---------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY -
0.3%
AT&T Capital Corp., 6.25%
Medium-Term Nts., Series F, 5/15/01 3,800,000 3,751,649
- ---------------------------------------------------------------
TRANSPORTATION - 0.3%
- ---------------------------------------------------------------
RAILROADS & TRUCKERS - 0.3%
Union Pacific Corp.:
7% Nts., 6/15/00 2,030,000 2,069,023
7.60% Nts., 5/1/05 2,000,000 2,152,886
--------------
4,221,909
</TABLE>
20
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
UTILITIES - 2.0%
- ---------------------------------------------------------------
ELECTRIC UTILITIES - 1.0%
El Paso Electric Co., 8.25% First
Mtg. Bonds, Series C, 2/1/03 $3,278,000 $ 3,474,680
- ---------------------------------------------------------------
Hawaiian Electric Industries, Inc.,
6.31% Medium-Term Nts., Series B,
2/19/02 5,000,000 5,052,465
- ---------------------------------------------------------------
Niagara Mohawk Power Corp., 7.125%
Sr. Unsec. Nts., Series C, 7/1/01 5,000,000 5,102,685
--------------
13,629,830
- ---------------------------------------------------------------
GAS UTILITIES - 1.0%
Northern Illinois Gas Co., 6.45%
First Mtg. Bonds, 8/1/01 2,000,000 2,031,266
- ---------------------------------------------------------------
Southern California Gas Co., 6.38%
Medium-Term Nts., 10/29/01 2,500,000 2,559,663
- ---------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50%
Bonds, 4/1/17 3,800,000 4,056,249
- ---------------------------------------------------------------
Williams Cos., Inc., 6.20% Nts.,
8/1/02 4,675,000 4,690,385
--------------
13,337,563
--------------
Total Non-Convertible Corporate
Bonds and Notes (Cost $229,982,709) 234,018,104
- ---------------------------------------------------------------
SHORT-TERM NOTES - 10.7%(8)
- ---------------------------------------------------------------
Federal Home Loan Bank:
4.93%, 1/4/99 10,000,000 9,995,892
5.05%, 1/21/99 10,000,000 9,971,944
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
4.50%, 1/4/99 3,000,000 2,998,875
5.02%, 1/15/99 10,000,000 9,980,167
5.03%, 1/11/99 11,344,000 11,327,916
5.03%, 1/14/99 10,000,000 9,981,728
5.06%, 1/13/99 10,000,000 9,983,133
5.06%, 1/27/99 7,487,000 7,459,639
5.07%, 1/7/99 10,000,000 9,991,550
5.07%, 1/19/99 10,000,000 9,974,650
5.08%, 1/20/99 10,000,000 9,973,189
5.10%, 1/8/99 10,000,000 9,990,083
- ---------------------------------------------------------------
Federal National Mortgage Assn.:
4.91%, 1/4/99 10,000,000 9,995,908
4.93%, 1/5/99 20,000,000 19,988,844
5.20%, 1/14/99 1,988,000 1,984,411
--------------
Total Short-Term Notes (Cost
$143,597,929) 143,597,929
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.3%
- ---------------------------------------------------------------
Repurchase agreement with First
Chicago Capital Markets, 4.75%,
dated 12/31/98, to be repurchased
at $57,730,453 on 1/4/99,
collaterallized by U.S. Treasury
Nts., 4%-8.875%, 2/15/99-7/15/06,
with a value of $58,877,313 (Cost
$57,700,000) 57,700,000 57,700,000
- ---------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$1,209,354,422) 100.2% 1,345,914,709
- ---------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS (0.2) (2,032,330)
---------- --------------
NET ASSETS 100.0% $1,343,882,379
---------- --------------
---------- --------------
</TABLE>
1. Non-income producing security.
2. Identifies issues considered to be illiquid or restricted - See Note 6 of
Notes to Financial Statements.
21
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. 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.
4. Represents the current interest rate for a variable rate security.
5. Securities with an aggregate market value of $14,195,005 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
6. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
7. 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 $22,839,517, or 1.70% of the Fund's net
assets as of December 31, 1998.
8. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
22
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 95.1%
- ----------------------------------------------------------------
CAPITAL GOODS - 9.8%
- ----------------------------------------------------------------
AEROSPACE/DEFENSE - 2.1%
General Dynamics Corp. 229,600 $ 13,460,300
- ----------------------------------------------------------------
Lockheed Martin Corp. 71,652 6,072,507
-------------
19,532,807
- ----------------------------------------------------------------
INDUSTRIAL SERVICES - 1.4%
Knoll, Inc.(1) 52,800 1,564,200
- ----------------------------------------------------------------
Viad Corp. 370,800 11,263,050
-------------
12,827,250
- ----------------------------------------------------------------
MANUFACTURING - 6.3%
Herman Miller, Inc. 130,900 3,517,937
- ----------------------------------------------------------------
Ingersoll-Rand Co. 241,800 11,349,487
- ----------------------------------------------------------------
PACCAR, Inc. 136,000 5,593,000
- ----------------------------------------------------------------
Textron, Inc. 236,700 17,974,406
- ----------------------------------------------------------------
United Technologies Corp. 176,200 19,161,750
-------------
57,596,580
- ----------------------------------------------------------------
CONSUMER CYCLICALS - 11.7%
- ----------------------------------------------------------------
AUTOS & HOUSING - 7.1%
Federal-Mogul Corp. 322,100 19,164,950
- ----------------------------------------------------------------
Fleetwood Enterprises, Inc. 81,000 2,814,750
- ----------------------------------------------------------------
Kaufman & Broad Home Corp. 79,300 2,279,875
- ----------------------------------------------------------------
Maytag Corp. 315,500 19,639,875
- ----------------------------------------------------------------
Owens Corning 224,300 7,948,631
- ----------------------------------------------------------------
USG Corp. 182,800 9,311,375
- ----------------------------------------------------------------
Whirlpool Corp. 72,300 4,003,612
-------------
65,163,068
- ----------------------------------------------------------------
LEISURE - 0.5%
Hasbro, Inc. 116,900 4,223,012
- ----------------------------------------------------------------
RETAIL: GENERAL - 3.7%
Dayton Hudson Corp. 199,100 10,801,175
- ----------------------------------------------------------------
Federated Department Stores,
Inc.(1) 123,700 5,388,681
- ----------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 179,500 2,479,344
- ----------------------------------------------------------------
Gucci Group NV 78,600 3,821,925
- ----------------------------------------------------------------
K Mart Corp.(1) 266,100 4,074,656
- ----------------------------------------------------------------
Nordstrom, Inc. 111,400 3,864,187
- ----------------------------------------------------------------
Shaw Industries, Inc. 132,200 3,205,850
-------------
33,635,818
- ----------------------------------------------------------------
RETAIL: SPECIALTY - 0.4%
Payless ShoeSource, Inc.(1) 70,400 3,335,200
</TABLE>
23
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES - 13.2%
- ----------------------------------------------------------------
BEVERAGES - 1.5%
Anheuser-Busch Cos., Inc. 204,900 $ 13,446,562
- ----------------------------------------------------------------
CONSUMER SERVICES - 0.6%
Hertz Corp., Cl. A 127,200 5,803,500
- ----------------------------------------------------------------
FOOD - 2.4%
General Mills, Inc. 131,700 10,239,675
- ----------------------------------------------------------------
IBP, Inc. 400,000 11,650,000
-------------
21,889,675
- ----------------------------------------------------------------
FOOD & DRUG RETAILERS - 4.6%
Albertson's, Inc. 193,600 12,329,900
- ----------------------------------------------------------------
Kroger Co.(1) 251,800 15,233,900
- ----------------------------------------------------------------
Safeway, Inc.(1) 246,900 15,045,469
-------------
42,609,269
- ----------------------------------------------------------------
HOUSEHOLD GOODS - 4.1%
Dial Corp. (The) 379,800 10,966,725
- ----------------------------------------------------------------
Fort James Corp. 288,262 11,530,480
- ----------------------------------------------------------------
Premark International, Inc. 424,400 14,694,850
-------------
37,192,055
- ----------------------------------------------------------------
ENERGY - 1.1%
- ----------------------------------------------------------------
OIL - DOMESTIC - 1.1%
Exxon Corp. 132,300 9,674,437
- ----------------------------------------------------------------
FINANCIAL - 16.8%
- ----------------------------------------------------------------
BANKS - 4.5%
Bank One Corp. 252,500 12,893,281
- ----------------------------------------------------------------
BankBoston Corp. 280,700 10,929,756
- ----------------------------------------------------------------
First Union Corp. 281,900 17,143,044
-------------
40,966,081
- ----------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.8%
Citigroup, Inc. 284,800 14,097,600
- ----------------------------------------------------------------
Fannie Mae 162,100 11,995,400
-------------
26,093,000
- ----------------------------------------------------------------
INSURANCE - 8.4%
Allstate Corp. 133,900 5,171,888
- ----------------------------------------------------------------
American General Corp. 117,600 9,172,800
- ----------------------------------------------------------------
American International Group, Inc. 143,000 13,817,375
- ----------------------------------------------------------------
Cigna Corp. 169,800 13,127,663
- ----------------------------------------------------------------
Conseco, Inc. 262,000 8,007,375
- ----------------------------------------------------------------
Equitable Cos., Inc. 40,500 2,343,938
- ----------------------------------------------------------------
Hartford Financial Services Group,
Inc. 104,600 5,739,925
- ----------------------------------------------------------------
Jefferson-Pilot Corp. 112,700 8,452,500
- ----------------------------------------------------------------
Transamerica Corp. 65,700 7,588,350
</TABLE>
24
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
INSURANCE (CONTINUED)
Travelers Property Casualty Corp.,
Cl. A 134,500 $ 4,169,500
-------------
77,591,314
- ----------------------------------------------------------------
SAVINGS & LOANS - 1.1%
Golden West Financial Corp. 107,000 9,810,563
- ----------------------------------------------------------------
HEALTHCARE - 7.9%
- ----------------------------------------------------------------
HEALTHCARE/DRUGS - 4.0%
Amgen, Inc.(1) 177,700 18,580,756
- ----------------------------------------------------------------
Genzyme Corp. (General Division)(1) 365,600 18,188,600
-------------
36,769,356
- ----------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
3.9%
Bard (C.R.), Inc. 321,100 15,894,450
- ----------------------------------------------------------------
Tenet Healthcare Corp.(1) 347,230 9,114,788
- ----------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 112,600 3,328,738
- ----------------------------------------------------------------
WellPoint Health Networks, Inc.(1) 88,200 7,673,400
-------------
36,011,376
- ----------------------------------------------------------------
TECHNOLOGY - 19.2%
- ----------------------------------------------------------------
COMPUTER HARDWARE - 13.6%
3Com Corp.(1) 302,600 13,560,263
- ----------------------------------------------------------------
Apple Computer, Inc.(1) 288,600 11,814,563
- ----------------------------------------------------------------
Compaq Computer Corp. 599,900 25,158,306
- ----------------------------------------------------------------
International Business Machines
Corp. 216,200 39,942,950
- ----------------------------------------------------------------
Lexmark International Group, Inc.,
Cl. A(1) 150,800 15,155,400
- ----------------------------------------------------------------
Seagate Technology, Inc.(1) 287,900 8,708,975
- ----------------------------------------------------------------
Storage Technology Corp. (New)(1) 303,600 10,796,775
-------------
125,137,232
- ----------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 2.3%
First Data Corp. 164,800 5,222,100
- ----------------------------------------------------------------
Network Associates, Inc.(1) 240,900 15,959,625
-------------
21,181,725
- ----------------------------------------------------------------
PHOTOGRAPHY - 3.3%
Eastman Kodak Co. 102,500 7,380,000
- ----------------------------------------------------------------
Xerox Corp. 197,900 23,352,200
-------------
30,732,200
- ----------------------------------------------------------------
TELECOMMUNICATIONS - 9.2%
- ----------------------------------------------------------------
TELEPHONE UTILITIES - 5.1%
Bell Atlantic Corp. 305,800 17,373,263
- ----------------------------------------------------------------
Century Telephone Enterprises, Inc. 104,250 7,036,875
- ----------------------------------------------------------------
U S West, Inc. 350,900 22,676,913
-------------
47,087,051
- ----------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY -
4.1%
ALLTELL Corp. 196,500 11,753,156
</TABLE>
25
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS/TECHNOLOGY
(CONTINUED)
AT&T Corp. 349,300 $ 26,284,825
-------------
38,037,981
- ----------------------------------------------------------------
TRANSPORTATION - 0.9%
- ----------------------------------------------------------------
AIR TRANSPORTATION - 0.9%
AMR Corp.(1) 79,000 4,690,625
- ----------------------------------------------------------------
Delta Air Lines, Inc. 71,400 3,712,800
-------------
8,403,425
- ----------------------------------------------------------------
UTILITIES - 5.3%
- ----------------------------------------------------------------
ELECTRIC UTILITIES - 4.0%
CalEnergy, Inc.(1) 131,100 4,547,531
- ----------------------------------------------------------------
FPL Group, Inc. 151,200 9,317,700
- ----------------------------------------------------------------
Houston Industries, Inc. 261,500 8,400,688
- ----------------------------------------------------------------
Montana Power Co. 263,300 14,892,906
-------------
37,158,825
- ----------------------------------------------------------------
GAS UTILITIES - 1.3%
Columbia Energy Group 208,600 12,046,650
-------------
Total Common Stocks (Cost
$689,695,739) 873,956,012
PRINCIPAL
AMOUNT
- ----------------------------------------------------------------
SHORT-TERM NOTES - 3.0%(2)
- ----------------------------------------------------------------
Federal Home Loan Bank, 4.93%,
1/4/99 $ 5,000,000 4,997,946
- ----------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
4.97%, 1/12/99 9,000,000 8,986,333
5.02%, 1/15/99 11,000,000 10,978,183
5.07%, 1/7/99 3,000,000 2,997,465
-------------
Total Short-Term Notes (Cost
$27,959,927) 27,959,927
- ----------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.6%
- ----------------------------------------------------------------
Repurchase agreement with First
Chicago Capital Markets, 4.75%,
dated 12/31/98, to be repurchased
at $23,812,561 on 1/4/99,
collateralized by U.S. Treasury
Nts., 4%-8.875%, 2/15/99-7/15/06,
with a value of $24,285,616 (Cost
$23,800,000) 23,800,000 23,800,000
- ----------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$741,455,666) 100.7% 925,715,939
- ----------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS (0.7) (6,844,480)
----------- -------------
NET ASSETS 100.0% $918,871,459
----------- -------------
----------- -------------
</TABLE>
1. Non-income producing security.
2. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
26
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS - 24.2%
- ---------------------------------------------------------------
GOVERNMENT AGENCY - 24.2%
- ---------------------------------------------------------------
FHLMC/FNMA/SPONSORED - 10.0%
Federal Home Loan Mortgage Corp.,
Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation
Certificates, 10.50%, 10/1/20 $ 121,568 $ 134,687
- ---------------------------------------------------------------
Federal National Mortgage Assn.:
6.50%, 2/1/09-8/1/28 2,010,687 2,026,461
7.50%, 9/1/22 306,962 315,401
------------
2,476,549
- ---------------------------------------------------------------
GNMA/GUARANTEED - 14.2%
Government National Mortgage Assn.:
6.50%, 7/15/28 1,178,465 1,190,733
7%, 10/15/23-3/15/26 2,302,266 2,357,254
------------
3,547,987
------------
Total Mortgage-Backed Obligations
(Cost $5,930,746) 6,024,536
- ---------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 54.2%
- ---------------------------------------------------------------
AGENCY - 4.1%
- ---------------------------------------------------------------
GOVERNMENT AGENCY-SPONSORED - 4.1%
Federal Farm Credit Bank,
Medium-Term Nts., 6.37%, 9/1/00 1,000,000 1,021,560
- ---------------------------------------------------------------
TREASURY - 50.1%
- ---------------------------------------------------------------
U.S. Treasury Bonds:
7.50%, 11/15/16(1) 2,175,000 2,705,156
8.125%, 8/15/19 500,000 668,750
9.25%, 2/15/16 1,200,000 1,724,250
- ---------------------------------------------------------------
U.S. Treasury Nts.:
5.75%, 8/15/03 500,000 522,032
7.25%, 8/15/04 2,700,000 3,037,500
7.50%, 11/15/01-2/15/05 905,000 1,007,875
7.875%, 11/15/04 2,255,000 2,612,981
8.50%, 2/15/00 200,000 208,250
------------
12,486,794
------------
Total U.S. Government Obligations
(Cost $12,300,485) 13,508,354
- ---------------------------------------------------------------
SHORT-TERM NOTES - 15.2%(2)
- ---------------------------------------------------------------
Federal Farm Credit Bank, 4.95%,
1/15/99 1,395,000 1,392,314
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Mtg.-Backed Certificates, 7.125%,
7/21/99 1,000,000 1,011,496
- ---------------------------------------------------------------
Student Loan Marketing Assn.,
4.40%, 1/4/99 1,400,000 1,399,487
------------
Total Short-Term Notes (Cost
$3,839,071) 3,803,297
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.4%
- ---------------------------------------------------------------
Repurchase agreement with First
Chicago Capital Markets, 4.75%,
dated 12/31/98,
to be repurchased at $1,100,581 on
1/4/99, collateralized by U.S.
Treasury Nts., 4%-8.875%,
2/15/99-7/15/06, with a value of
$1,122,444 (Cost $1,100,000) 1,100,000 1,100,000
- ---------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$23,170,302) 98.0% 24,436,187
- ---------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.0 486,692
----------- ------------
NET ASSETS 100.0% $24,922,879
----------- ------------
----------- ------------
</TABLE>
1. Securities with an aggregate market value of $49,750 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
2. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
27
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- -------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 97.0%
- -------------------------------------------------------------
BASIC MATERIALS - 0.7%
- -------------------------------------------------------------
CHEMICALS - 0.7%
Fuji Photo Film Co. 19,000 $ 704,636
- -------------------------------------------------------------
CAPITAL GOODS - 8.1%
- -------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.8%
Toshiba Corp. 138,000 820,080
- -------------------------------------------------------------
INDUSTRIAL SERVICES - 1.3%
Hays plc 156,000 1,332,038
- -------------------------------------------------------------
MANUFACTURING - 6.0%
BBA Group plc 170,000 1,055,566
- -------------------------------------------------------------
Brambles Industries Ltd. 33,000 804,113
- -------------------------------------------------------------
Mannesmann AG 20,000 2,314,586
- -------------------------------------------------------------
Smiths Industries plc 91,000 1,270,393
- -------------------------------------------------------------
Taiyo Yuden Co. 60,000 708,874
------------
6,153,532
- -------------------------------------------------------------
CONSUMER CYCLICALS - 14.3%
- -------------------------------------------------------------
AUTOS & HOUSING - 3.5%
Bridgestone Corp. 22,000 498,278
- -------------------------------------------------------------
Cie de Saint Gobain 7,000 988,721
- -------------------------------------------------------------
Suzuki Motor Corp. 58,000 686,269
- -------------------------------------------------------------
Valeo SA 18,000 1,419,117
------------
3,592,385
- -------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.3%
CDL Hotels International Ltd. 2,250,000 577,964
- -------------------------------------------------------------
Nintendo Co. Ltd. 8,400 812,185
------------
1,390,149
- -------------------------------------------------------------
MEDIA - 2.9%
Benpres Holdings Corp.(1) 960,000 155,480
- -------------------------------------------------------------
VNU-Verenigde Nederlandse
Uitgeverbedrijven Verenigd Bezit 35,000 1,320,426
- -------------------------------------------------------------
Wolters Kluwer NV 7,000 1,498,721
------------
2,974,627
- -------------------------------------------------------------
RETAIL: GENERAL - 1.4%
Circle K Japan Co. Ltd. 10,200 447,629
- -------------------------------------------------------------
Ito-Yokado Co. Ltd. 15,000 1,046,358
------------
1,493,987
- -------------------------------------------------------------
RETAIL: SPECIALTY - 5.2%
Boots Co. plc 59,000 999,252
- -------------------------------------------------------------
Hennes & Mauritz AB, B Shares 23,000 1,878,468
- -------------------------------------------------------------
Kingfisher plc 88,000 882,720
- -------------------------------------------------------------
Koninklijke Ahold NV 45,000 1,664,121
------------
5,424,561
</TABLE>
28
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- -------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES - 13.0%
- -------------------------------------------------------------
BEVERAGES - 1.0%
Scottish & Newcastle plc 88,000 $ 994,336
- -------------------------------------------------------------
ENTERTAINMENT - 0.9%
Shaw Brothers (Hong Kong) Ltd. 2,200,000 951,333
- -------------------------------------------------------------
FOOD - 6.1%
Groupe Danone 6,000 1,718,580
- -------------------------------------------------------------
Jeronimo Martins & Filho SA 20,000 1,094,145
- -------------------------------------------------------------
Kerry Group plc, Cl. A 75,000 1,023,195
- -------------------------------------------------------------
Koninklijke Numico NV 23,000 1,096,891
- -------------------------------------------------------------
Nestle SA 650 1,414,483
------------
6,347,294
- -------------------------------------------------------------
FOOD & DRUG RETAILERS - 2.6%
Colruyt SA 1,500 1,257,541
- -------------------------------------------------------------
William Morrison Supermarkets plc 306,000 1,405,355
------------
2,662,896
- -------------------------------------------------------------
HOUSEHOLD GOODS - 2.4%
L'OREAL 2,400 1,735,766
- -------------------------------------------------------------
Reckitt & Colman plc 58,000 765,466
------------
2,501,232
- -------------------------------------------------------------
ENERGY - 2.4%
- -------------------------------------------------------------
OIL - DOMESTIC - 1.1%
Total SA, B Shares 11,157 1,130,479
- -------------------------------------------------------------
OIL - INTERNATIONAL - 1.3%
Shell Transport & Trading Co. plc 227,000 1,385,028
- -------------------------------------------------------------
FINANCIAL - 17.1%
- -------------------------------------------------------------
BANKS - 7.4%
Banco Popular Espanol SA 17,000 1,283,777
- -------------------------------------------------------------
Banco Santander SA 900 17,912
- -------------------------------------------------------------
Bank Handlowy W Warszawie, GDR(2) 28,000 364,000
- -------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 14,600 1,155,359
- -------------------------------------------------------------
Credito Italiano SpA 250,000 1,485,088
- -------------------------------------------------------------
Lloyds TSB Group plc 133,000 1,885,396
- -------------------------------------------------------------
Nordbanken Holding AB 220,000 1,411,380
------------
7,602,912
- -------------------------------------------------------------
DIVERSIFIED FINANCIAL - 4.6%
Cattles plc 110,000 1,153,554
- -------------------------------------------------------------
ING Groep NV 20,000 1,220,248
- -------------------------------------------------------------
Lend Lease Corp. Ltd. 45,000 606,878
- -------------------------------------------------------------
Northern Rock plc 133,000 1,265,751
- -------------------------------------------------------------
Perlis Plantations Berhad(3) 175,000 143,684
- -------------------------------------------------------------
Promise Co. Ltd. 8,000 415,364
------------
4,805,479
</TABLE>
29
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- -------------------------------------------------------------
<S> <C> <C>
INSURANCE - 5.1%
AEGON NV 13,000 $ 1,597,406
- -------------------------------------------------------------
Assicurazioni Generali SpA 30,000 1,255,388
- -------------------------------------------------------------
AXA SA 10,000 1,450,052
- -------------------------------------------------------------
Irish Life plc 100,000 942,309
------------
5,245,155
- -------------------------------------------------------------
HEALTHCARE - 14.2%
- -------------------------------------------------------------
HEALTHCARE/DRUGS - 9.9%
Fresenius AG, Preference 7,000 1,471,008
- -------------------------------------------------------------
Gedeon Richter Ltd., GDR(2) 17,000 726,750
- -------------------------------------------------------------
Novartis AG 550 1,080,786
- -------------------------------------------------------------
Novartis AG, Bearer Shares 300 589,520
- -------------------------------------------------------------
Novo-Nordisk AS, B Shares 10,000 1,319,853
- -------------------------------------------------------------
Sanofi SA 10,000 1,646,973
- -------------------------------------------------------------
Schering AG 8,000 1,006,289
- -------------------------------------------------------------
Takeda Chemical Industries Ltd. 25,000 960,265
- -------------------------------------------------------------
Zeneca Group plc 33,000 1,431,866
------------
10,233,310
- -------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
4.3%
Luxottica Group SpA, Sponsored ADR 75,000 900,000
- -------------------------------------------------------------
Olympus Optical Co. Ltd. 79,000 906,146
- -------------------------------------------------------------
Pliva d.d., Sponsored GDR(2) 30,000 498,000
- -------------------------------------------------------------
SmithKline Beecham plc 106,000 1,476,284
- -------------------------------------------------------------
Terumo Corp. 28,000 657,660
------------
4,438,090
- -------------------------------------------------------------
TECHNOLOGY - 8.8%
- -------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 0.9%
SAP AG, Preference 2,000 960,058
- -------------------------------------------------------------
ELECTRONICS - 7.9%
Bowthorpe plc 165,000 949,288
- -------------------------------------------------------------
Electrocomponents plc 161,000 1,075,761
- -------------------------------------------------------------
Getronics NV 30,000 1,486,678
- -------------------------------------------------------------
Hoshiden Corp. 65,000 1,131,832
- -------------------------------------------------------------
Sony Corp. 13,000 944,724
- -------------------------------------------------------------
TDK Corp. 9,000 820,927
- -------------------------------------------------------------
VTech Holdings Ltd. 400,000 1,745,186
------------
8,154,396
- -------------------------------------------------------------
TELECOMMUNICATIONS - 13.0%
- -------------------------------------------------------------
TELEPHONE UTILITIES - 5.8%
Cable & Wireless Communications
plc(1) 130,000 1,184,393
- -------------------------------------------------------------
Tele Danmark AS, B Shares 16,000 2,159,531
- -------------------------------------------------------------
Telecom Italia Mobile SpA 180,000 1,331,803
- -------------------------------------------------------------
Telefonica de Espana 30,000 1,336,003
------------
6,011,730
</TABLE>
30
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- -------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS/TECHNOLOGY -
7.2%
Ericsson LM, B Shares 35,000 $ 833,381
- -------------------------------------------------------------
Matsushita Communication Industrial
Co. 16,000 753,024
- -------------------------------------------------------------
Nippon Telegraph & Telephone Corp. 88 677,581
- -------------------------------------------------------------
Nokia Oyj, A Shares 8,000 979,601
- -------------------------------------------------------------
NTT Mobile Communications Network,
Inc. 23 944,371
- -------------------------------------------------------------
Telecom Italia SpA 150,000 1,282,679
- -------------------------------------------------------------
Vodafone Group plc 122,000 1,970,169
------------
7,440,806
- -------------------------------------------------------------
TRANSPORTATION - 1.3%
- -------------------------------------------------------------
AIR TRANSPORTATION - 1.3%
BAA plc 115,000 1,330,877
- -------------------------------------------------------------
UTILITIES - 4.1%
- -------------------------------------------------------------
ELECTRIC UTILITIES - 3.2%
Endesa SA 35,000 928,780
- -------------------------------------------------------------
United Utilities plc 86,000 1,191,323
- -------------------------------------------------------------
Vivendi (Ex-Generale des Eaux) 4,500 1,168,097
------------
3,288,200
- -------------------------------------------------------------
GAS UTILITIES - 0.9%
RWE AG, Preference 25,000 908,122
------------
Total Common Stocks (Cost
$74,409,375) 100,277,728
UNITS
- -------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES -
0.0%
- -------------------------------------------------------------
Telefonica de Espana Rts., Exp.
1/99 (Cost $0) 30,000 26,678
PRINCIPAL
AMOUNT
- -------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.7%
- -------------------------------------------------------------
Repurchase agreement with First
Chicago Capital Markets, 4.75%,
dated 12/31/98, to be repurchased
at $2,801,478 on 1/4/99,
collateralized by U.S. Treasury
Nts., 4%-8.875%, 2/15/99-7/15/06,
with a value of $2,857,131 (Cost
$2,800,000) $2,800,000 2,800,000
- -------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$77,209,375) 99.7% 103,104,406
- -------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.3 299,342
---------- ------------
NET ASSETS 100.0% $103,403,748
---------- ------------
---------- ------------
</TABLE>
1. Non-income producing security.
2. Represents a security 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 $1,588,750 or 1.54% of the Fund's net
assets as of December 31, 1998.
3. Identifies issues considered to be illiquid or restricted - See Note 6 of
Notes to Financial Statements.
31
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
Distribution of investments by a country of issue, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
COUNTRY MARKET VALUE PERCENT
- ---------------------------------------------------------
Great Britain $ 25,004,817 24.2%
- ---------------------------------------------------------
Japan 13,936,203 13.4
- ---------------------------------------------------------
France 11,257,784 10.9
- ---------------------------------------------------------
The Netherlands 9,884,492 9.6
- ---------------------------------------------------------
Germany 7,815,422 7.6
- ---------------------------------------------------------
Italy 6,254,958 6.1
- ---------------------------------------------------------
Sweden 4,123,229 4.0
- ---------------------------------------------------------
Spain 3,593,149 3.5
- ---------------------------------------------------------
Denmark 3,479,383 3.4
- ---------------------------------------------------------
Hong Kong 3,274,483 3.2
- ---------------------------------------------------------
Switzerland 3,084,790 3.0
- ---------------------------------------------------------
United States 2,800,000 2.7
- ---------------------------------------------------------
Ireland 1,965,504 1.9
- ---------------------------------------------------------
Australia 1,410,991 1.4
- ---------------------------------------------------------
Belgium 1,257,541 1.2
- ---------------------------------------------------------
Portugal 1,094,145 1.1
- ---------------------------------------------------------
Finland 979,601 0.9
- ---------------------------------------------------------
Hungary 726,750 0.7
- ---------------------------------------------------------
Croatia 498,000 0.5
- ---------------------------------------------------------
Poland 364,000 0.4
- ---------------------------------------------------------
Philippines 155,480 0.2
- ---------------------------------------------------------
Malaysia 143,684 0.1
------------ ------
Total $103,104,406 100.0%
------------ ------
------------ ------
</TABLE>
See accompanying Notes to Financial Statements.
32
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES - 1.7%
- ---------------------------------------------------------------
Arcadia Automobile Receivables
Trust, Automobile
Receivables-Backed Nts., Series
1998-B, Cl. A3, 5.95%, 11/15/02 $ 250,000 $ 251,172
- ---------------------------------------------------------------
Dayton Hudson Credit Card Master
Trust, Asset-Backed Certificates,
Series 1997-1, Cl. A, 6.25%,
8/25/05 125,000 127,695
- ---------------------------------------------------------------
IROQUOIS Trust, Asset-Backed
Amortizing Nts., Series 1997-2, Cl.
A, 6.752%, 6/25/07(1) 175,000 175,820
- ---------------------------------------------------------------
Olympic Automobile Receivables
Trust, Automobile
Receivables-Backed Nts., Series
1997-A, Cl. A-5, 6.80%, 2/15/05 200,000 203,000
------------
Total Asset-Backed Securities (Cost
$750,722) 757,687
- ---------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 5.3%
- ---------------------------------------------------------------
Countrywide Funding Corp., Mtg.
Pass-Through Certificates, Series
1994-10, Cl. A3, 6%, 5/25/09 250,000 248,357
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation
Certificates, Series 1711, Cl. EA,
7%, 3/15/24 300,000 306,843
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Gtd. Multiclass Mtg. Participation
Certificates:
6%, 3/1/09 175,841 176,970
Series 1843, Cl. VB, 7%, 4/15/03 95,000 97,019
Series 1849, Cl. VA, 6%, 12/15/10 182,480 184,077
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Interest-Only Stripped Mtg.-Backed
Security:
Series 1542, Cl. QC, 7.50-25.82%,
10/15/20(2) 900,000 118,125
Series 1583, Cl. IC, 7.03%,
1/15/20(2) 433,807 42,567
Series 1661, Cl. PK, 6.61-7.47%,
11/15/06(2) 745,601 47,998
- ---------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 132,420 132,839
6.50%, 4/1/26 162,143 163,305
7%, 4/1/00 58,390 58,335
- ---------------------------------------------------------------
Federal National Mortgage Assn.,
Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates,
Trust 1993-190, Cl. Z, 5.85%,
7/25/08 142,928 142,660
- ---------------------------------------------------------------
GE Capital Mortgage Services, Inc.,
Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates,
Series 1994-7, Cl. A18, 6%, 2/25/09 174,024 166,248
- ---------------------------------------------------------------
IMC Home Equity Trust, Asset-Backed
Home Equity Securities, Series
1998-3, Cl. A5, 6.36%, 8/20/22(3) 425,000 425,266
------------
Total Mortgage-Backed Obligations
(Cost $2,288,437) 2,310,609
- ---------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 27.4%
- ---------------------------------------------------------------
AGENCY - 2.0%
- ---------------------------------------------------------------
GOVERNMENT AGENCY-SPONSORED - 2.0%
Federal Farm Credit Bank,
Medium-Term Nts., 5.24%, 10/1/08 225,000 223,957
- ---------------------------------------------------------------
Federal Home Loan Bank, 5.57%,
8/17/00 650,000 655,791
------------
879,748
- ---------------------------------------------------------------
TREASURY - 25.4%
- ---------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 1,025,000 1,118,852
</TABLE>
33
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
TREASURY (CONTINUED)
U.S. Treasury Bonds: (Continued)
7.50%, 11/15/16 $ 1,465,000 $ 1,822,094
STRIPS, 5.62%, 11/15/18(4) 900,000 299,910
- ---------------------------------------------------------------
U.S. Treasury Nts.:
5.625%, 2/15/06 550,000 580,250
5.75%, 8/15/03 1,500,000 1,566,094
6.125%, 8/15/07 450,000 491,906
6.50%, 8/15/05 1,375,000 1,511,212
6.75%, 6/30/99 565,000 571,180
7.50%, 11/15/01 2,925,000 3,144,375
------------
Total U.S. Government Obligations
(Cost $11,531,867) 11,985,621
- ---------------------------------------------------------------
CORPORATE BONDS AND NOTES - 33.5%
- ---------------------------------------------------------------
CHEMICALS - 0.8%
Laroche Industries, Inc., 9.50% Sr.
Sub. Nts., Series B, 9/15/07 50,000 40,250
- ---------------------------------------------------------------
Morton International, Inc., 9.25%
Credit Sensitive Nts., 6/1/20 75,000 102,087
- ---------------------------------------------------------------
PPG Industries, Inc., 9% Debs.,
5/1/21 75,000 95,939
- ---------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr.
Nts., 12/1/04(1) 75,000 80,625
- ---------------------------------------------------------------
Texas Petrochemicals Corp., 11.125%
Sr. Sub. Nts., Series B, 7/1/06 50,000 49,500
------------
368,401
- ---------------------------------------------------------------
CONSUMER DURABLES - 0.4%
Black & Decker Corp., 6.625% Nts.,
11/15/00 155,000 157,650
- ---------------------------------------------------------------
CONSUMER NON-DURABLES - 0.4%
Kimberly-Clark Corp., 7.875% Debs.,
2/1/23 75,000 83,368
- ---------------------------------------------------------------
Revlon Consumer Products Corp.,
8.625% Sr. Unsec. Sub. Nts., 2/1/08 50,000 45,750
- ---------------------------------------------------------------
William Carter Co., 10.375% Sr.
Sub. Nts., Series A, 12/1/06 50,000 53,000
------------
182,118
- ---------------------------------------------------------------
ENERGY - 2.2%
Abraxas Petroleum Corp./CDN Abraxas
Petroleum Ltd., 11.50% Sr. Unsec.
Nts., Series D, 11/1/04 50,000 38,000
- ---------------------------------------------------------------
Coastal Corp.:
8.125% Sr. Nts., 9/15/02 95,000 101,825
8.75% Sr. Nts., 5/15/99 50,000 50,524
- ---------------------------------------------------------------
Crown Central Petroleum Corp.,
10.875% Sr. Nts., 2/1/05 50,000 48,250
- ---------------------------------------------------------------
Forcenergy, Inc., 8.50% Sr. Sub.
Nts., Series B, 2/15/07 50,000 37,250
- ---------------------------------------------------------------
Gulf Canada Resources Ltd.:
8.25% Sr. Nts., 3/15/17 125,000 113,047
9% Debs., 8/15/99 75,000 75,375
- ---------------------------------------------------------------
Louisiana Land & Exploration Co.,
7.65% Debs., 12/1/23 75,000 81,101
- ---------------------------------------------------------------
Norcen Energy Resources Ltd., 6.80%
Debs., 7/2/02 100,000 101,139
- ---------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50%
Nts., 3/31/07 75,000 79,910
- ---------------------------------------------------------------
RAM Energy, Inc., 11.50% Sr. Unsec.
Nts., 2/15/08 50,000 35,250
- ---------------------------------------------------------------
Southwest Royalties, Inc., 10.50%
Sr. Nts., Series B, 10/15/04 50,000 20,250
- ---------------------------------------------------------------
Standard Oil, 9% Gtd. Debs., 6/1/19 75,000 75,815
</TABLE>
34
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
ENERGY (CONTINUED)
Transamerican Energy Corp., 11.50%
Sr. Nts., Series B, 6/15/02(1) $ 25,000 $ 8,125
- ---------------------------------------------------------------
Williams Holdings of Delaware,
Inc., 6.25% Sr. Unsec. Debs.,
2/1/06 75,000 77,174
------------
943,035
- ---------------------------------------------------------------
FINANCIAL - 6.4%
Aetna Industries, Inc., 11.875% Sr.
Nts., 10/1/06(1) 50,000 52,750
- ---------------------------------------------------------------
American General Institutional
Capital B, 8.125% Bonds, Series B,
3/15/46(5) 75,000 86,572
- ---------------------------------------------------------------
BankAmerica Corp. (New), 8.50%
Exchangeable Sub. Capital Nts.,
3/1/99 (exchangeable for common,
perpetual preferred stock or other
capital securities) 55,000 55,210
- ---------------------------------------------------------------
Capital One Bank, Inc., 6.375% Sr.
Nts., 2/15/03 200,000 192,523
- ---------------------------------------------------------------
Capital One Financial Corp., 7.25%
Nts., 12/1/03 90,000 88,582
- ---------------------------------------------------------------
Chelsea GCA Realty Partner, Inc.,
7.75% Unsec. Nts., 1/26/01 310,000 308,017
- ---------------------------------------------------------------
Conseco Financing Trust III, 8.796%
Bonds, 4/1/27 150,000 143,896
- ---------------------------------------------------------------
Conseco, Inc., 6.40% Nts., 6/15/01 250,000 239,764
- ---------------------------------------------------------------
Countrywide Home Loans, Inc., 6.05%
Medium-Term Nts., Series D, 3/1/01 250,000 251,039
- ---------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc.,
9.90% Sub. Nts., 6/15/01 145,000 159,017
- ---------------------------------------------------------------
General Electric Capital Corp.,
5.77% Nts., Series A, 8/27/01 225,000 227,508
- ---------------------------------------------------------------
General Motors Acceptance Corp.,
5.625% Nts., 2/15/01 250,000 250,892
- ---------------------------------------------------------------
GS Escrow Corp., 6.75% Sr. Nts.,
8/1/01(5) 225,000 221,895
- ---------------------------------------------------------------
Integra Financial Corp., 6.50% Sub.
Nts., 4/15/00 125,000 126,659
- ---------------------------------------------------------------
Olympic Financial Ltd., Units (each
unit consists of $1,000 principal
amount of 11.50% sr. nts., 3/15/07
and one warrant to purchase 6.84
shares of common stock)(1)(6) 50,000 37,750
- ---------------------------------------------------------------
Simon DeBartolo Group, Inc., 6.625%
Nts., 6/15/03 250,000 247,422
- ---------------------------------------------------------------
Travelers Property Casualty Corp.,
6.75% Nts., 4/15/01 125,000 128,008
------------
2,817,504
- ---------------------------------------------------------------
FOOD & DRUG - 0.5%
Jitney-Jungle Stores of America,
Inc., 10.375% Sr. Sub. Nts.,
9/15/07 50,000 51,500
- ---------------------------------------------------------------
Tricon Global Restaurants, Inc.,
7.45% Sr. Unsec. Nts., 5/15/05 150,000 154,801
------------
206,301
- ---------------------------------------------------------------
FOOD/TOBACCO - 1.1%
AmeriServe Food Distribution, Inc.,
8.875% Sr. Nts., 10/15/06 50,000 46,500
- ---------------------------------------------------------------
Dole Food Distributing, Inc., 6.75%
Nts., 7/15/00 150,000 151,459
- ---------------------------------------------------------------
Eagle Family Foods, Inc., 8.75% Sr.
Sub. Nts., 1/15/08 50,000 47,500
- ---------------------------------------------------------------
Grand Metro Inventory Corp., 7.125%
Nts., 9/15/04 225,000 241,814
------------
487,273
- ---------------------------------------------------------------
FOREST PRODUCTS/CONTAINERS - 0.5%
Malette, Inc., 12.25% Sr. Sec.
Nts., 7/15/04(1) 50,000 54,250
- ---------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr.
Nts., 10/1/05(1) 75,000 76,875
- ---------------------------------------------------------------
Stone Container Corp., 9.875% Sr.
Nts., 2/1/01 75,000 76,312
------------
207,437
</TABLE>
35
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
GAMING/LEISURE - 2.8%
American Skiing Corp., 12% Sr. Sub.
Nts., Series B, 7/15/06(1) $ 50,000 $ 52,250
- ---------------------------------------------------------------
Ameristar Casinos, Inc., 10.50% Sr.
Sub. Nts., Series B, 8/1/04 50,000 45,750
- ---------------------------------------------------------------
Bally Total Fitness Holding Corp.,
9.875% Sr. Sub. Nts., Series B,
10/15/07 50,000 49,250
- ---------------------------------------------------------------
Casino America, Inc., 12.50% Sr.
Nts., 8/1/03 75,000 83,437
- ---------------------------------------------------------------
Casino Magic of Louisiana Corp.,
13% First Mtg. Nts., Series B,
8/15/03 75,000 85,125
- ---------------------------------------------------------------
Colorado Gaming & Entertainment
Co., 12% Sr. Sec. Nts., 6/1/03(1) 50,000 53,750
- ---------------------------------------------------------------
Hilton Hotels Corp., 7.375% Nts.,
6/1/02 150,000 151,244
- ---------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr.
Nts., Series A, 8/1/05 50,000 49,000
- ---------------------------------------------------------------
Hollywood Casino Corp., 12.75% Gtd.
Sr. Sec. Nts., 11/1/03 50,000 53,250
- ---------------------------------------------------------------
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Nts., 6/15/07 50,000 51,875
- ---------------------------------------------------------------
Intrawest Corp., 9.75% Sr. Unsec.
Nts., 8/15/08(5) 50,000 51,500
- ---------------------------------------------------------------
Lady Luck Gaming Corp., 11.875%
First Mtg. Nts., 3/1/01(1) 50,000 50,750
- ---------------------------------------------------------------
Mohegan Tribal Gaming Authority
(Connecticut), 13.50% Sr. Sec.
Nts., Series B, 11/15/02 75,000 90,375
- ---------------------------------------------------------------
Park Place Entertainment Corp.,
7.875% Sr. Sub. Nts., 12/15/05(5) 50,000 50,312
- ---------------------------------------------------------------
Players International, Inc.,
10.875% Sr. Nts., 4/15/05 50,000 53,875
- ---------------------------------------------------------------
Prime Hospitality Corp., 9.75% Sr.
Sub. Nts., 4/1/07 75,000 76,875
- ---------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625%
Sr. Sub. Nts., 7/15/05 75,000 82,125
- ---------------------------------------------------------------
Santa Fe Hotel, Inc., 11% Gtd.
First Mtg. Nts., 12/15/00 50,000 46,000
- ---------------------------------------------------------------
Station Casinos, Inc., 9.75% Sr.
Sub. Nts., 4/15/07 50,000 52,500
------------
1,229,243
- ---------------------------------------------------------------
HEALTHCARE - 1.1%
Columbia/HCA Healthcare Corp.,
6.875% Nts., 7/15/01 145,000 143,963
- ---------------------------------------------------------------
Dade International, Inc., 11.125%
Sr. Sub. Nts., 5/1/06 50,000 55,750
- ---------------------------------------------------------------
ICN Pharmaceutical, Inc., 8.75% Sr.
Nts., 11/15/08(5) 50,000 50,750
- ---------------------------------------------------------------
Integrated Health Services, Inc.,
9.25% Sr. Sub. Nts., Series A,
1/15/08 50,000 47,000
- ---------------------------------------------------------------
Kinetic Concepts, Inc., 9.625% Sr.
Unsec. Sub. Nts., Series B, 11/1/07 75,000 72,188
- ---------------------------------------------------------------
Paracelsus Healthcare Corp., 10%
Sr. Unsec. Sub. Nts., 8/15/06(1) 50,000 45,250
- ---------------------------------------------------------------
Playtex Products, Inc., 8.875% Sr.
Nts., 7/15/04 50,000 52,625
------------
467,526
- ---------------------------------------------------------------
HOUSING - 0.7%
Ainsworth Lumber, Inc., 12.50% Sr.
Nts., 7/15/07(7) 50,000 50,000
- ---------------------------------------------------------------
American Standard Cos., Inc.,
10.875% Sr. Nts., 5/15/99 140,000 140,700
- ---------------------------------------------------------------
First Industrial LP, 7.15% Bonds,
5/15/27 125,000 126,056
------------
316,756
- ---------------------------------------------------------------
MANUFACTURING - 1.4%
Jordan Industries, Inc., 10.375%
Sr. Nts., Series B, 8/1/07(1) 50,000 51,250
- ---------------------------------------------------------------
Titan Wheel International, Inc.,
8.75% Sr. Sub. Nts., 4/1/07 50,000 49,250
- ---------------------------------------------------------------
U.S. Filter Corp., 6.375% Bonds,
5/15/01 250,000 248,341
</TABLE>
36
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
MANUFACTURING (CONTINUED)
U.S. Industries, Inc., 7.125% Sr.
Nts., 10/15/03(5) $ 275,000 $ 275,336
------------
624,177
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-BROADCASTING -
0.7%
Allbritton Communications Co.,
8.875% Sr. Sub. Nts., Series B,
2/1/08 50,000 50,750
- ---------------------------------------------------------------
Fox/Liberty Networks LLC, 8.875%
Sr. Nts., 8/15/07 25,000 25,625
- ---------------------------------------------------------------
Interepublic National Radio Sales
Corp., 10% Sr. Unsec. Sub. Nts.,
7/1/08(1) 75,000 77,625
- ---------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10%
Sr. Sub. Nts., 9/30/05 75,000 79,875
- ---------------------------------------------------------------
Spanish Broadcasting Systems, Inc.,
11% Sr. Nts., 3/15/04 50,000 53,250
------------
287,125
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-CABLE/WIRELESS
VIDEO - 1.2%
Adelphia Communications Corp.,
10.50% Sr. Unsec. Nts., Series B,
7/15/04 50,000 56,250
- ---------------------------------------------------------------
Century Communications Corp., Zero
Coupon Sr. Disc. Nts., Series B,
8.51%, 1/15/08(4) 50,000 25,250
- ---------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub.
Debs., 10/15/06 75,000 80,250
- ---------------------------------------------------------------
Diva Systems Corp., Units (each
unit consists of $1,000 principal
amount of 0%/12.625% sr. disc.
nts., 3/1/08 and three warrants to
purchase three shares of common
stock)(5)(6)(8) 100,000 41,500
- ---------------------------------------------------------------
EchoStar Communications Corp.,
0%/12.875% Sr. Disc. Nts.,
6/1/04(8) 25,000 25,750
- ---------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285%
Sr. Disc. Debs., Series B,
4/15/10(8) 150,000 103,500
- ---------------------------------------------------------------
James Cable Partners LP, 10.75% Sr.
Nts., Series B, 8/15/04 50,000 52,250
- ---------------------------------------------------------------
Marcus Cable Operating Co.
LP/Marcus Cable Capital Corp.,
0%/13.50% Gtd. Sr. Sub. Disc. Nts.,
Series II, 8/1/04(8) 50,000 50,625
- ---------------------------------------------------------------
TCI Satellite Entertainment, Inc.,
10.875% Sr. Sub. Nts., 2/15/07 50,000 16,750
- ---------------------------------------------------------------
United International Holdings,
Inc., 0%/10.75% Sr. Disc. Nts.,
Series B, 2/15/08(8) 100,000 54,500
------------
506,625
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-DIVERSIFIED
MEDIA - 0.4%
Big Flower Press Holdings, Inc.,
8.625% Sr. Sub. Nts., 12/1/08(5) 50,000 50,750
- ---------------------------------------------------------------
Hollinger International Publishing,
Inc., 9.25% Gtd. Sr. Sub. Nts.,
3/15/07 50,000 53,000
- ---------------------------------------------------------------
MDC Communications Corp., 10.50%
Sr. Sub. Nts., 12/1/06 50,000 51,250
------------
155,000
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-TELECOMMUNICATIONS
- -3.3%
Advanstar Communications, Inc.,
9.25% Sr. Sub. Nts., 5/1/08 100,000 101,000
- ---------------------------------------------------------------
AT&T Capital Corp., 6.25%
Medium-Term Nts., Series F, 5/15/01 225,000 222,137
- ---------------------------------------------------------------
Coaxial Communications, Inc., 10%
Sr. Unsec. Nts., 8/15/06(1) 50,000 51,875
- ---------------------------------------------------------------
Comcast UK Cable Partner Ltd.,
0%/11.20% Sr. Disc. Debs.,
11/15/07(8) 75,000 63,750
- ---------------------------------------------------------------
Diamond Cable Communications plc,
0%/10.75% Sr. Disc. Nts.,
2/15/07(8) 50,000 35,500
- ---------------------------------------------------------------
e.spire Communications, Inc.,
0%/13% Sr. Disc. Nts., 11/1/05(8) 50,000 37,750
- ---------------------------------------------------------------
Exodus Communications, Inc., 11.25%
Sr. Nts., 7/1/08 50,000 50,250
- ---------------------------------------------------------------
Globix Corp., 13% Sr. Unsec. Nts.,
5/1/05 50,000 41,250
- ---------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr.
Disc. Nts., 12/15/05(8) 50,000 36,125
- ---------------------------------------------------------------
Hermes Europe Railtel BV, 10.375%
Sr. Nts., 1/15/09(5)(9) 50,000 50,750
</TABLE>
37
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
MEDIA/ENTERTAINMENT-TELECOMMUNICATIONS
(CONTINUED)
ICG Holdings, Inc., 0%/11.625% Sr.
Disc. Nts., 3/15/07(8) $ 75,000 $ 48,750
- ---------------------------------------------------------------
International CableTel, Inc.,
0%/11.50% Sr. Deferred Coupon Nts.,
Series B, 2/1/06(8) 100,000 82,500
- ---------------------------------------------------------------
IXC Communications, Inc., 9% Sr.
Sub. Nts., 4/15/08 50,000 50,375
- ---------------------------------------------------------------
Level 3 Communications, Inc.,
9.125% Sr. Unsec. Nts., 5/1/08 50,000 49,625
- ---------------------------------------------------------------
PSINet, Inc., 11.50% Sr. Nts.,
11/1/08(5) 50,000 52,625
- ---------------------------------------------------------------
Qwest Communications International,
Inc., 0%/9.47% Sr. Disc. Nts.,
10/15/07(8) 50,000 38,875
- ---------------------------------------------------------------
RSL Communications plc, 9.125% Sr.
Unsec. Nts., 3/1/08 50,000 46,250
- ---------------------------------------------------------------
Talton Holdings, Inc., 11% Gtd. Sr.
Unsec. Bonds, Series B, 6/30/07 50,000 47,750
- ---------------------------------------------------------------
TeleWest Communications plc:
0%/11% Sr. Disc. Debs., 10/1/07(8) 50,000 42,000
9.625% Sr. Debs., 10/1/06 50,000 51,750
- ---------------------------------------------------------------
US West Capital Funding, Inc.,
6.125% Nts., 7/15/02 225,000 230,277
------------
1,431,164
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-WIRELESS
COMMUNICATIONS - 1.1%
Comcast Cellular Communications,
Inc., 9.50% Sr. Nts., 5/1/07 50,000 53,250
- ---------------------------------------------------------------
Iridium LLC/Iridium Capital Corp.,
11.25% Sr. Nts., Series C/EN,
7/15/05 50,000 43,250
- ---------------------------------------------------------------
Microcell Telecommunications, Inc.,
0%/14% Sr. Disc. Nts., Series B,
6/1/06(8) 50,000 37,375
- ---------------------------------------------------------------
Nextel Communications, Inc.,
0%/9.75% Sr. Disc. Nts., 8/15/04(8) 50,000 48,750
- ---------------------------------------------------------------
Optel, Inc., 11.50% Sr. Unsec.
Nts., 7/1/08 75,000 73,500
- ---------------------------------------------------------------
Price Communications Cellular
Holdings, Inc., 11.25% Sr. Nts.,
8/15/08(7) 50,000 47,500
- ---------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr.
Sub. Nts., Series B, 5/15/08 50,000 50,375
- ---------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum
Finance Corp., 11% Sr. Nts.,
8/15/06 50,000 58,000
- ---------------------------------------------------------------
Western Wireless Corp., 10.50% Sr.
Sub. Nts., 2/1/07 50,000 53,250
- ---------------------------------------------------------------
Winstar Communications, Inc.,
0%/14% Sr. Disc. Nts., 10/15/05(8) 50,000 35,750
------------
501,000
- ---------------------------------------------------------------
METALS/MINERALS - 0.6%
Alcan Aluminum Ltd., 9.625% Debs.,
7/15/19 175,000 187,044
- ---------------------------------------------------------------
Algoma Steel, Inc., 12.375% First
Mtg. Nts., 7/15/05 50,000 38,250
- ---------------------------------------------------------------
Gulf States Steel, Inc. (Alabama),
13.50% First Mtg. Nts., Series B,
4/15/03 50,000 16,000
- ---------------------------------------------------------------
WCI Steel, Inc., 10% Sr. Nts.,
Series B, 12/1/04 25,000 24,938
------------
266,232
- ---------------------------------------------------------------
RETAIL - 1.0%
Federated Department Stores, Inc.,
6.125% Cv. Sub. Nts., 9/1/01(3) 225,000 227,634
- ---------------------------------------------------------------
K Mart Corp., 7.75% Debs., 10/1/12 50,000 51,517
- ---------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub.
Nts., 10/15/07 50,000 52,625
- ---------------------------------------------------------------
Price/Costco Cos., Inc., 7.125% Sr.
Nts., 6/15/05 100,000 107,651
------------
439,427
- ---------------------------------------------------------------
SERVICE - 3.2%
Advance Holding Corp., 0%/12.875%
Sr. Disc. Nts., 4/15/09(8) 100,000 58,500
- ---------------------------------------------------------------
Advance Stores Co., Inc., 10.25%
Sr. Unsec. Sub. Nts., Series B,
4/15/08 50,000 50,750
</TABLE>
38
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
SERVICE (CONTINUED)
Applied Extrusion Technologies,
Inc., 11.50% Sr. Nts., Series B,
4/1/02(1) $ 50,000 $ 52,375
- ---------------------------------------------------------------
Employee Solutions, Inc., 10% Sr.
Unsec. Nts., Series B, 10/15/04(1) 50,000 37,750
- ---------------------------------------------------------------
Fisher Scientific International,
Inc., 9% Sr. Sub. Nts., 2/1/08(5) 50,000 50,250
- ---------------------------------------------------------------
Grove Holdings LLC/Grove Holdings
Capital, Inc., 0%/11.625% Sr.
Unsec. Disc. Debs., 5/1/09(8) 100,000 42,500
- ---------------------------------------------------------------
Jordan Telecommunication Products,
Inc., 9.875% Sr. Nts., Series B,
8/1/07 50,000 49,750
- ---------------------------------------------------------------
KSL Recreation Group, Inc., 10.25%
Sr. Sub. Nts., 5/1/07(1) 50,000 50,000
- ---------------------------------------------------------------
Lamar Advertising Co., 8.625% Sr.
Sub. Nts., 9/15/07 50,000 52,750
- ---------------------------------------------------------------
Maxim Group, Inc. (The), 9.25% Sr.
Sub. Nts., Series B, 10/15/07(1) 50,000 49,750
- ---------------------------------------------------------------
Mrs. Fields Holding Co., Units
(each unit consists of $1,000
principal amount of 0%/14% sr. sec.
disc. nts., 12/1/05 and warrants to
purchase shares of common
stock)(1)(6)(8) 100,000 57,500
- ---------------------------------------------------------------
Ocean Energy, Inc., 8.375% Sr.
Unsec. Sub. Nts., Series B, 7/1/08 75,000 70,125
- ---------------------------------------------------------------
Production Resource Group, LLC/PRG
Finance Corp., 11.50% Sr. Unsec.
Sub. Nts., 1/15/08(1) 50,000 49,250
- ---------------------------------------------------------------
Scotia Pacific Co. LLC, 6.55% Nts.,
1/20/07(5) 225,000 217,617
- ---------------------------------------------------------------
Simonds Industries, Inc., 10.25%
Sr. Sub. Nts., 7/1/08(1) 75,000 76,875
- ---------------------------------------------------------------
Sun Co., Inc., 7.95% Debs.,
12/15/01 75,000 79,153
- ---------------------------------------------------------------
Thermadyne Holdings Corp.,
0%/12.50% Sr. Disc. Debs.,
6/1/08(1)(8) 100,000 48,000
- ---------------------------------------------------------------
Tyco International Group SA, 6.125%
Unsec. Nts., 6/15/01 250,000 252,662
- ---------------------------------------------------------------
USI American Holdings, Inc., 7.25%
Sr. Nts., Series B, 12/1/06 70,000 69,364
------------
1,414,921
- ---------------------------------------------------------------
TRANSPORTATION - 1.5%
Cambridge Industries, Inc., 10.25%
Sr. Sub. Nts., Series B, 7/15/07 50,000 43,250
- ---------------------------------------------------------------
Canadian Airlines Corp., 12.25% Sr.
Nts., 8/1/06 50,000 34,250
- ---------------------------------------------------------------
CSX Corp., 7.05% Debs., 5/1/02 85,000 88,813
- ---------------------------------------------------------------
Federal-Mogul Corp., 7.50% Nts.,
7/1/04 150,000 151,949
- ---------------------------------------------------------------
Golden Ocean Group Ltd., 10% Sr.
Unsec. Nts., 8/31/01 50,000 15,000
- ---------------------------------------------------------------
Norfolk Southern Corp., 7.35% Nts.,
5/15/07 75,000 82,769
- ---------------------------------------------------------------
Oxford Automotive, Inc., 10.125%
Sr. Unsec. Sub. Nts., 6/15/07 50,000 52,000
- ---------------------------------------------------------------
Trans World Airlines, Inc., 11.375%
Unsec. Nts., 3/1/06 50,000 31,750
- ---------------------------------------------------------------
Union Pacific Corp., 7% Nts.,
6/15/00 145,000 147,787
------------
647,568
- ---------------------------------------------------------------
UTILITY - 2.2%
AES Corp., 8.50% Sr. Sub. Nts.,
11/1/07 50,000 50,875
- ---------------------------------------------------------------
Niagara Mohawk Power Corp., 7.125%
Sr. Unsec. Nts., Series C, 7/1/01 225,000 229,621
- ---------------------------------------------------------------
Northern Illinois Gas Co., 6.45%
First Mtg. Bonds, 8/1/01 240,000 243,752
- ---------------------------------------------------------------
Teligent, Inc., 11.50% Sr. Nts.,
12/1/07 50,000 47,000
- ---------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50%
Bonds, 4/1/17 100,000 106,743
</TABLE>
39
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
UTILITY (CONTINUED)
Williams Cos., Inc., 6.20% Nts.,
8/1/02 $ 275,000 $ 275,905
------------
953,896
------------
Total Corporate Bonds and Notes
(Cost $14,804,606) 14,610,379
SHARES
- ---------------------------------------------------------------
PREFERRED STOCKS - 0.3%
- ---------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series
A, Non-Vtg. 1,100 63,250
- ---------------------------------------------------------------
PRIMEDIA, Inc., 10% Preferred
Stock, Series D(1) 500 52,250
- ---------------------------------------------------------------
TCR Holding Corp.:
Series B(10) 44 3
Series C(10) 24 1
Series D(10) 64 4
Series E(10) 132 8
------------
Total Preferred Stocks (Cost
$155,341) 115,516
- ---------------------------------------------------------------
COMMON STOCKS - 19.9%
- ---------------------------------------------------------------
AEROSPACE/DEFENSE - 1.1%
General Dynamics Corp. 6,500 381,062
- ---------------------------------------------------------------
Lockheed Martin Corp. 1,000 84,750
------------
465,812
- ---------------------------------------------------------------
CHEMICALS - 0.6%
Dexter Corp. 3,900 122,606
- ---------------------------------------------------------------
Ethyl Corp. 12,200 70,912
- ---------------------------------------------------------------
IMC Global, Inc. 2,834 60,577
------------
254,095
- ---------------------------------------------------------------
CONSUMER NON-DURABLES - 0.6%
Eastman Kodak Co. 3,700 266,400
- ---------------------------------------------------------------
ENERGY - 2.1%
Amoco Corp. 2,600 156,975
- ---------------------------------------------------------------
Atlantic Richfield Co. 2,500 163,125
- ---------------------------------------------------------------
Chevron Corp. 2,500 207,344
- ---------------------------------------------------------------
Exxon Corp. 4,200 307,125
- ---------------------------------------------------------------
Occidental Petroleum Corp. 4,700 79,312
------------
913,881
- ---------------------------------------------------------------
FINANCIAL - 4.5%
American General Corp. 3,000 234,000
- ---------------------------------------------------------------
Bank One Corp. 3,700 188,931
- ---------------------------------------------------------------
BankBoston Corp. 3,600 140,175
- ---------------------------------------------------------------
Camden Property Trust 4,800 124,800
- ---------------------------------------------------------------
Citigroup, Inc. 3,700 183,150
- ---------------------------------------------------------------
Cornerstone Properties, Inc. 8,400 131,250
</TABLE>
40
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
<S> <C> <C>
- ---------------------------------------------------------------
FINANCIAL (CONTINUED)
First Union Corp. 2,900 $ 176,356
- ---------------------------------------------------------------
Healthcare Realty Trust, Inc. 4,684 104,512
- ---------------------------------------------------------------
HRPT Properties Trust 6,400 90,000
- ---------------------------------------------------------------
HSB Group, Inc. 3,750 153,984
- ---------------------------------------------------------------
Jefferson-Pilot Corp. 1,500 112,500
- ---------------------------------------------------------------
Meditrust Corp., Paired Stock 3,724 56,325
- ---------------------------------------------------------------
Tower Realty Trust, Inc. 5,000 100,625
- ---------------------------------------------------------------
Transamerica Corp. 1,600 184,800
------------
1,981,408
- ---------------------------------------------------------------
FOOD & DRUG - 0.2%
Piccadilly Cafeterias, Inc. 7,000 73,500
- ---------------------------------------------------------------
FOOD/TOBACCO - 0.6%
Anheuser-Busch Cos., Inc. 1,400 91,875
- ---------------------------------------------------------------
General Mills, Inc. 2,300 178,825
------------
270,700
- ---------------------------------------------------------------
FOREST PRODUCTS/CONTAINERS - 0.1%
Unisource Worldwide, Inc. 6,800 49,300
- ---------------------------------------------------------------
HEALTHCARE - 0.8%
Bard (C.R.), Inc. 7,300 361,350
- ---------------------------------------------------------------
HOUSING - 0.1%
Fleetwood Enterprises, Inc. 1,000 34,750
- ---------------------------------------------------------------
MANUFACTURING - 0.9%
New England Business Service, Inc. 4,700 183,888
- ---------------------------------------------------------------
PACCAR, Inc. 3,800 156,275
- ---------------------------------------------------------------
ROHN Industries, Inc.(10) 12,000 41,250
------------
381,413
- ---------------------------------------------------------------
MEDIA/ENTERTAINMENT-TELECOMMUNICATIONS
- -1.3%
ALLTELL Corp. 4,000 239,250
- ---------------------------------------------------------------
AT&T Corp. 4,200 316,050
------------
555,300
- ---------------------------------------------------------------
METALS/MINERALS - 0.2%
Carpenter Technology Corp. 3,100 105,206
- ---------------------------------------------------------------
RETAIL - 0.3%
Brown Group, Inc. 6,400 112,400
- ---------------------------------------------------------------
TRANSPORTATION - 0.7%
GATX Corp. 8,200 310,575
- ---------------------------------------------------------------
UTILITY - 5.8%
Bell Atlantic Corp. 5,832 331,331
- ---------------------------------------------------------------
Duke Energy Corp. 5,186 332,228
- ---------------------------------------------------------------
El Paso Energy Corp. 10,000 348,125
- ---------------------------------------------------------------
FPL Group, Inc. 3,500 215,688
</TABLE>
41
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ---------------------------------------------------------------
<S> <C> <C>
UTILITY (CONTINUED)
Houston Industries, Inc. 3,400 $ 109,225
- ---------------------------------------------------------------
Kansas City Power & Light Co. 5,000 148,125
- ---------------------------------------------------------------
MCN Energy Group, Inc. 3,800 72,438
- ---------------------------------------------------------------
Montana Power Co. 3,400 192,313
- ---------------------------------------------------------------
National Fuel Gas Co. 3,700 167,194
- ---------------------------------------------------------------
Questar Corp. 7,000 135,625
- ---------------------------------------------------------------
U S West, Inc. 5,600 361,900
- ---------------------------------------------------------------
Western Resources, Inc. 3,900 129,675
------------
2,543,867
------------
Total Common Stocks (Cost
$7,537,675) 8,679,957
UNITS
- ---------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES -
0.0%
- ---------------------------------------------------------------
Microcell Telecommunications, Inc.
Wts., Exp. 6/06(1) 200 3,625
- ---------------------------------------------------------------
Price Communications Corp. Wts.,
Exp. 8/07(1) 258 12,319
------------
Total Rights, Warrants and
Certificates (Cost $2,825) 15,944
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS - 10.8%
- ---------------------------------------------------------------
Repurchase agreement with
PaineWebber, Inc., 4.85%, dated
12/31/98, to be repurchased at
$4,708,536 on 1/4/99,
collateralized by U.S. Treasury
Nts., 7.75%, 11/30/99, with a value
of $4,808,558 (Cost $4,706,000) $ 4,706,000 4,706,000
- ---------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$41,777,473) 98.9% 43,181,713
- ---------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.1 497,368
----------- ------------
NET ASSETS 100.0% $43,679,081
----------- ------------
----------- ------------
</TABLE>
1. Identifies issues considered to be illiquid or restricted - See Note 5 of
Notes to Financial Statements.
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 the current interest rate for a variable rate security.
4. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
5. 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 $1,199,857 or 2.75% of the Fund's net
assets as of December 31, 1998.
6. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, principal amount disclosed represents total
underlying principal.
7. Interest or dividend is paid in kind.
42
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
8. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
9. When-issued security to be delivered and settled after December 31, 1998.
10. Non-income producing security.
See accompanying Notes to Financial Statements.
43
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 54.2%
- ----------------------------------------------------------------
BASIC MATERIALS - 0.6%
- ----------------------------------------------------------------
CHEMICALS - 0.4%
Dexter Corp. 4,700 $ 147,756
- ----------------------------------------------------------------
Ethyl Corp. 14,400 83,700
- ----------------------------------------------------------------
Fuji Photo Film Co. 2,000 74,172
- ----------------------------------------------------------------
IMC Global, Inc. 2,834 60,577
------------
366,205
- ----------------------------------------------------------------
METALS - 0.1%
Carpenter Technology Corp. 3,600 122,175
- ----------------------------------------------------------------
PAPER - 0.1%
Unisource Worldwide, Inc. 7,900 57,275
- ----------------------------------------------------------------
CAPITAL GOODS - 6.0%
- ----------------------------------------------------------------
AEROSPACE/DEFENSE - 1.0%
General Dynamics Corp. 10,000 586,250
- ----------------------------------------------------------------
Kellstrom Industries, Inc.(1) 2,700 77,625
- ----------------------------------------------------------------
Lockheed Martin Corp. 2,100 177,975
------------
841,850
- ----------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.1%
Toshiba Corp. 15,000 89,139
- ----------------------------------------------------------------
INDUSTRIAL SERVICES - 2.6%
Casella Waste Systems, Inc., Cl.
A(1) 2,700 100,237
- ----------------------------------------------------------------
Hays plc 20,000 170,774
- ----------------------------------------------------------------
International Network Services(1) 3,600 239,400
- ----------------------------------------------------------------
Kendle International, Inc.(1) 3,300 77,137
- ----------------------------------------------------------------
Knoll, Inc.(1) 900 26,662
- ----------------------------------------------------------------
Manhattan Associates, Inc.(1) 2,600 70,850
- ----------------------------------------------------------------
Metamor Worldwide, Inc.(1) 4,250 106,250
- ----------------------------------------------------------------
Metzler Group, Inc.(1) 3,100 150,931
- ----------------------------------------------------------------
NCO Group, Inc.(1) 2,300 103,500
- ----------------------------------------------------------------
New England Business Service, Inc. 5,300 207,362
- ----------------------------------------------------------------
Rental Service Corp.(1) 3,700 58,044
- ----------------------------------------------------------------
SM&A Corp.(1) 1,200 22,800
- ----------------------------------------------------------------
Tetra Tech, Inc.(1) 9,947 269,191
- ----------------------------------------------------------------
Transaction Systems Architects,
Inc., Cl. A(1) 5,800 290,000
- ----------------------------------------------------------------
United Rentals, Inc.(1) 2,500 82,812
- ----------------------------------------------------------------
Viad Corp. 4,700 142,762
- ----------------------------------------------------------------
Whittman-Hart, Inc.(1) 4,400 121,550
------------
2,240,262
</TABLE>
44
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - 2.3%
BBA Group plc 21,000 $ 130,393
- ----------------------------------------------------------------
Brambles Industries Ltd. 5,000 121,835
- ----------------------------------------------------------------
Herman Miller, Inc. 2,100 56,437
- ----------------------------------------------------------------
Ingersoll-Rand Co. 3,600 168,975
- ----------------------------------------------------------------
Mannesmann AG 1,950 225,672
- ----------------------------------------------------------------
Mettler-Toledo International,
Inc.(1) 3,500 98,219
- ----------------------------------------------------------------
PACCAR, Inc. 6,600 271,425
- ----------------------------------------------------------------
ROHN Industries, Inc.(1) 12,000 41,250
- ----------------------------------------------------------------
Smiths Industries plc 11,000 153,564
- ----------------------------------------------------------------
Taiyo Yuden Co. 8,000 94,517
- ----------------------------------------------------------------
Textron, Inc. 4,300 326,531
- ----------------------------------------------------------------
United Technologies Corp. 2,600 282,750
------------
1,971,568
- ----------------------------------------------------------------
CONSUMER CYCLICALS - 5.9%
- ----------------------------------------------------------------
AUTOS & HOUSING - 2.1%
Bridgestone Corp. 5,000 113,245
- ----------------------------------------------------------------
Cie de Saint Gobain 1,000 141,246
- ----------------------------------------------------------------
Federal-Mogul Corp. 4,800 285,600
- ----------------------------------------------------------------
Fleetwood Enterprises, Inc. 2,500 86,875
- ----------------------------------------------------------------
Kaufman & Broad Home Corp. 1,300 37,375
- ----------------------------------------------------------------
Kroll-O'Gara Co. (The)(1) 4,200 165,637
- ----------------------------------------------------------------
Maytag Corp. 4,400 273,900
- ----------------------------------------------------------------
Overseas Union Enterprise Ltd. 35,000 69,578
- ----------------------------------------------------------------
Owens Corning 3,100 109,856
- ----------------------------------------------------------------
Sonic Automotive, Inc.(1) 2,400 82,650
- ----------------------------------------------------------------
Suzuki Motor Corp. 4,000 47,329
- ----------------------------------------------------------------
USG Corp. 2,600 132,437
- ----------------------------------------------------------------
Valeo SA 2,500 197,100
- ----------------------------------------------------------------
Whirlpool Corp. 900 49,837
------------
1,792,665
- ----------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.5%
CDL Hotels International Ltd. 270,000 69,356
- ----------------------------------------------------------------
Coach USA, Inc.(1) 3,500 121,406
- ----------------------------------------------------------------
Hasbro, Inc. 1,300 46,962
- ----------------------------------------------------------------
Nintendo Co. Ltd. 1,000 96,689
- ----------------------------------------------------------------
Pegasus Systems, Inc.(1) 2,800 100,800
------------
435,213
- ----------------------------------------------------------------
MEDIA - 0.5%
Benpres Holdings Corp.(1) 120,000 19,435
- ----------------------------------------------------------------
Citadel Communications Corp.(1) 2,800 72,450
</TABLE>
45
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
MEDIA (CONTINUED)
VNU-Verenigde Nederlandse
Uitgeverbedrijven Verenigd Bezit 5,000 $ 188,632
- ----------------------------------------------------------------
Wolters Kluwer NV 750 160,577
------------
441,094
- ----------------------------------------------------------------
RETAIL: GENERAL - 0.7%
Circle K Japan Co. Ltd. 1,300 57,051
- ----------------------------------------------------------------
Dayton Hudson Corp. 2,500 135,625
- ----------------------------------------------------------------
Federated Department Stores,
Inc.(1) 1,000 43,562
- ----------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 1,100 15,194
- ----------------------------------------------------------------
Gucci Group NV 1,200 58,350
- ----------------------------------------------------------------
Ito-Yokado Co. Ltd. 2,000 139,514
- ----------------------------------------------------------------
K Mart Corp.(1) 3,000 45,937
- ----------------------------------------------------------------
Nordstrom, Inc. 1,600 55,500
- ----------------------------------------------------------------
Shaw Industries, Inc. 2,200 53,350
------------
604,083
- ----------------------------------------------------------------
RETAIL: SPECIALTY - 2.1%
Ann Taylor Stores Corp.(1) 3,400 134,087
- ----------------------------------------------------------------
Boots Co. plc 9,000 152,428
- ----------------------------------------------------------------
Brown Group, Inc. 7,900 138,744
- ----------------------------------------------------------------
Children's Place Retail Stores,
Inc.(1) 2,500 62,812
- ----------------------------------------------------------------
Guitar Center, Inc.(1) 4,200 103,425
- ----------------------------------------------------------------
Hennes & Mauritz AB, B Shares 3,000 245,018
- ----------------------------------------------------------------
Insight Enterprises, Inc.(1) 5,875 298,891
- ----------------------------------------------------------------
Kingfisher plc 14,000 140,433
- ----------------------------------------------------------------
Koninklijke Ahold NV 6,000 221,883
- ----------------------------------------------------------------
Payless ShoeSource, Inc.(1) 1,100 52,112
- ----------------------------------------------------------------
Restoration Hardware, Inc.(1) 5,200 139,750
- ----------------------------------------------------------------
School Specialty, Inc.(1) 4,100 87,637
------------
1,777,220
- ----------------------------------------------------------------
CONSUMER STAPLES - 5.7%
- ----------------------------------------------------------------
BEVERAGES - 0.5%
Anheuser-Busch Cos., Inc. 4,900 321,562
- ----------------------------------------------------------------
Scottish & Newcastle plc 12,000 135,591
------------
457,153
- ----------------------------------------------------------------
CONSUMER SERVICES - 0.6%
Alternative Living Services,
Inc.(1) 6,100 208,925
- ----------------------------------------------------------------
Hanover Compressor Co.(1) 3,000 77,062
- ----------------------------------------------------------------
Hertz Corp., Cl. A 1,500 68,437
- ----------------------------------------------------------------
Lamar Advertising Co., Cl. A(1) 4,600 171,350
------------
525,774
</TABLE>
46
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
ENTERTAINMENT - 0.4%
CKE Restaurants, Inc. 5,060 $ 148,954
- ----------------------------------------------------------------
Piccadilly Cafeterias, Inc. 8,000 84,000
- ----------------------------------------------------------------
Shaw Brothers (Hong Kong) Ltd. 280,000 121,079
------------
354,033
- ----------------------------------------------------------------
FOOD - 1.8%
General Mills, Inc. 4,900 380,975
- ----------------------------------------------------------------
Groupe Danone 800 229,144
- ----------------------------------------------------------------
IBP, Inc. 7,200 209,700
- ----------------------------------------------------------------
Jeronimo Martins & Filho SA 2,375 129,930
- ----------------------------------------------------------------
Kerry Group plc, Cl. A 9,000 122,783
- ----------------------------------------------------------------
Koninklijke Numico NV 3,100 147,842
- ----------------------------------------------------------------
Nestle SA 85 184,971
- ----------------------------------------------------------------
Suiza Foods Corp.(1) 2,000 101,875
------------
1,507,220
- ----------------------------------------------------------------
FOOD & DRUG RETAILERS - 1.3%
Albertson's, Inc. 3,100 197,431
- ----------------------------------------------------------------
Colruyt SA 200 167,672
- ----------------------------------------------------------------
Kroger Co.(1) 3,100 187,550
- ----------------------------------------------------------------
Safeway, Inc.(1) 3,300 201,094
- ----------------------------------------------------------------
United Natural Foods, Inc.(1) 4,700 113,387
- ----------------------------------------------------------------
Whole Foods Market, Inc.(1) 2,200 106,425
- ----------------------------------------------------------------
William Morrison Supermarkets plc 33,000 151,558
------------
1,125,117
- ----------------------------------------------------------------
HOUSEHOLD GOODS - 1.1%
Blyth Industries, Inc.(1) 3,600 112,500
- ----------------------------------------------------------------
Dial Corp. (The) 5,500 158,812
- ----------------------------------------------------------------
Fort James Corp. 4,350 174,000
- ----------------------------------------------------------------
L'OREAL 300 216,971
- ----------------------------------------------------------------
Premark International, Inc. 5,500 190,437
- ----------------------------------------------------------------
Reckitt & Colman plc 8,000 105,581
------------
958,301
- ----------------------------------------------------------------
ENERGY - 1.7%
- ----------------------------------------------------------------
OIL-DOMESTIC - 1.5%
Amoco Corp. 3,000 181,125
- ----------------------------------------------------------------
Atlantic Richfield Co. 2,800 182,700
- ----------------------------------------------------------------
Chevron Corp. 2,800 232,225
- ----------------------------------------------------------------
Exxon Corp. 6,200 453,375
- ----------------------------------------------------------------
Occidental Petroleum Corp. 5,400 91,125
- ----------------------------------------------------------------
Total SA, B Shares 1,200 121,590
------------
1,262,140
</TABLE>
47
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
OIL-INTERNATIONAL - 0.2%
Shell Transport & Trading Co. plc 26,000 $ 158,638
- ----------------------------------------------------------------
FINANCIAL - 8.2%
- ----------------------------------------------------------------
BANKS - 2.4%
Banco Popular Espanol SA 1,900 143,481
- ----------------------------------------------------------------
Banco Santander SA 96 1,911
- ----------------------------------------------------------------
Bank One Corp. 8,300 423,819
- ----------------------------------------------------------------
BankBoston Corp. 7,900 307,606
- ----------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 1,750 138,485
- ----------------------------------------------------------------
Credito Italiano SpA 30,000 178,211
- ----------------------------------------------------------------
First Union Corp. 7,700 468,256
- ----------------------------------------------------------------
Lloyds TSB Group plc 14,000 198,463
- ----------------------------------------------------------------
Nordbanken Holding AB 25,000 160,384
------------
2,020,616
- ----------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.6%
Cattles plc 15,000 157,303
- ----------------------------------------------------------------
Citigroup, Inc. 8,800 435,600
- ----------------------------------------------------------------
Fannie Mae 2,600 192,400
- ----------------------------------------------------------------
HealthCare Financial Partners,
Inc.(1) 3,900 142,350
- ----------------------------------------------------------------
ING Groep NV 2,500 152,531
- ----------------------------------------------------------------
Lend Lease Corp. Ltd. 7,000 94,403
- ----------------------------------------------------------------
Northern Rock plc 16,000 152,271
- ----------------------------------------------------------------
Perlis Plantations Berhad(2) 17,500 14,368
- ----------------------------------------------------------------
Promise Co. Ltd. 1,400 72,689
------------
1,413,915
- ----------------------------------------------------------------
INSURANCE - 3.2%
AEGON NV 1,600 196,604
- ----------------------------------------------------------------
Allstate Corp. 1,900 73,387
- ----------------------------------------------------------------
American General Corp. 5,100 397,800
- ----------------------------------------------------------------
American International Group, Inc. 2,200 212,575
- ----------------------------------------------------------------
Assicurazioni Generali SpA 4,000 167,385
- ----------------------------------------------------------------
AXA SA 1,300 188,507
- ----------------------------------------------------------------
Cigna Corp. 2,700 208,744
- ----------------------------------------------------------------
Conseco, Inc. 3,800 116,138
- ----------------------------------------------------------------
Equitable Cos., Inc. 300 17,363
- ----------------------------------------------------------------
Hartford Financial Services Group,
Inc. 1,600 87,800
- ----------------------------------------------------------------
HSB Group, Inc. 3,750 153,984
- ----------------------------------------------------------------
Irish Life plc 15,000 141,346
- ----------------------------------------------------------------
Jefferson-Pilot Corp. 3,400 255,000
- ----------------------------------------------------------------
Pre-Paid Legal Services, Inc.(1) 5,800 191,400
- ----------------------------------------------------------------
Transamerica Corp. 2,700 311,850
</TABLE>
48
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
INSURANCE (CONTINUED)
Travelers Property Casualty Corp.,
Cl. A 2,100 $ 65,100
------------
2,784,983
- ----------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS -
0.8%
Camden Property Trust 5,400 140,400
- ----------------------------------------------------------------
Cornerstone Properties, Inc. 9,500 148,438
- ----------------------------------------------------------------
Healthcare Realty Trust, Inc. 5,366 119,729
- ----------------------------------------------------------------
HRPT Properties Trust 7,300 102,656
- ----------------------------------------------------------------
Meditrust Corp., Paired Stock 4,325 65,416
- ----------------------------------------------------------------
Tower Realty Trust, Inc. 5,700 114,713
------------
691,352
- ----------------------------------------------------------------
SAVINGS & LOANS - 0.2%
Golden West Financial Corp. 1,900 174,206
- ----------------------------------------------------------------
HEALTHCARE - 4.9%
- ----------------------------------------------------------------
HEALTHCARE/DRUGS - 2.6%
Amgen, Inc.(1) 2,700 282,319
- ----------------------------------------------------------------
Fresenius AG, Preference 800 168,115
- ----------------------------------------------------------------
Gedeon Richter Ltd., GDR(3) 2,200 94,050
- ----------------------------------------------------------------
Genzyme Corp. (General Division)(1) 6,900 343,275
- ----------------------------------------------------------------
Idexx Laboratories, Inc.(1) 2,600 69,956
- ----------------------------------------------------------------
Jones Pharma, Inc. 3,100 113,150
- ----------------------------------------------------------------
Medicis Pharmaceutical Corp., Cl.
A(1) 3,500 208,688
- ----------------------------------------------------------------
Novartis AG 100 196,507
- ----------------------------------------------------------------
Novo-Nordisk AS, B Shares 1,300 171,581
- ----------------------------------------------------------------
Sanofi SA 1,200 197,637
- ----------------------------------------------------------------
Schering AG 1,000 125,786
- ----------------------------------------------------------------
Takeda Chemical Industries Ltd. 3,000 115,232
- ----------------------------------------------------------------
Zeneca Group plc 4,000 173,560
------------
2,259,856
- ----------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
2.3%
Bard (C.R.), Inc. 11,800 584,100
- ----------------------------------------------------------------
Luxottica Group SpA, Sponsored ADR 10,000 120,000
- ----------------------------------------------------------------
Olympus Optical Co. Ltd. 9,000 103,232
- ----------------------------------------------------------------
Orthodontic Centers of America,
Inc.(1) 5,500 106,906
- ----------------------------------------------------------------
Pediatrix Medical Group, Inc.(1) 3,500 209,781
- ----------------------------------------------------------------
Pliva d.d., Sponsored GDR(3) 5,100 84,660
- ----------------------------------------------------------------
Province Healthcare Co.(1) 3,900 139,913
- ----------------------------------------------------------------
Renal Care Group, Inc.(1) 5,500 158,469
- ----------------------------------------------------------------
SmithKline Beecham plc 15,000 208,908
- ----------------------------------------------------------------
Tenet Healthcare Corp.(1) 2,890 75,863
- ----------------------------------------------------------------
Terumo Corp. 2,000 46,976
</TABLE>
49
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES
(CONTINUED)
Total Renal Care Holdings, Inc.(1) 1,700 $ 50,256
- ----------------------------------------------------------------
WellPoint Health Networks, Inc.(1) 700 60,900
------------
1,949,964
- ----------------------------------------------------------------
TECHNOLOGY - 11.2%
- ----------------------------------------------------------------
COMPUTER HARDWARE - 2.8%
3Com Corp.(1) 4,900 219,581
- ----------------------------------------------------------------
Apex PC Solutions, Inc.(1) 3,500 101,063
- ----------------------------------------------------------------
Apple Computer, Inc.(1) 4,200 171,938
- ----------------------------------------------------------------
Compaq Computer Corp. 8,800 369,050
- ----------------------------------------------------------------
Electronics for Imaging, Inc.(1) 2,700 108,506
- ----------------------------------------------------------------
International Business Machines
Corp. 3,300 609,675
- ----------------------------------------------------------------
Lexmark International Group, Inc.,
Cl. A(1) 2,200 221,100
- ----------------------------------------------------------------
Network Appliance, Inc.(1) 7,400 333,000
- ----------------------------------------------------------------
Seagate Technology, Inc.(1) 4,200 127,050
- ----------------------------------------------------------------
Storage Technology Corp. (New)(1) 2,600 92,463
- ----------------------------------------------------------------
VideoServer, Inc.(1) 4,600 84,525
------------
2,437,951
- ----------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 5.2%
Abacus Direct Corp.(1) 2,600 118,300
- ----------------------------------------------------------------
Applied Micro Circuits Corp.(1) 4,000 135,875
- ----------------------------------------------------------------
Aware, Inc.(1) 5,100 138,656
- ----------------------------------------------------------------
Best Software, Inc.(1) 4,400 104,500
- ----------------------------------------------------------------
BindView Development Corp.(1) 4,800 132,000
- ----------------------------------------------------------------
BroadVision, Inc.(1) 3,500 112,000
- ----------------------------------------------------------------
Concord Communications, Inc.(1) 2,100 119,175
- ----------------------------------------------------------------
Dendrite International, Inc.(1) 6,600 164,794
- ----------------------------------------------------------------
Diamond Technology Partners,
Inc.(1) 6,900 131,963
- ----------------------------------------------------------------
Documentum, Inc.(1) 3,000 160,313
- ----------------------------------------------------------------
DSET Corp.(1) 9,000 93,375
- ----------------------------------------------------------------
First Data Corp. 2,600 82,388
- ----------------------------------------------------------------
Great Plains Software, Inc.(1) 2,700 130,275
- ----------------------------------------------------------------
IDX Systems Corp.(1) 2,500 110,000
- ----------------------------------------------------------------
Legato Systems, Inc.(1) 3,500 230,781
- ----------------------------------------------------------------
Macromedia, Inc.(1) 4,700 158,331
- ----------------------------------------------------------------
Medical Manager Corp.(1) 2,900 90,988
- ----------------------------------------------------------------
MedQuist, Inc.(1) 1,900 75,050
- ----------------------------------------------------------------
Mercury Interactive Corp.(1) 3,300 208,725
- ----------------------------------------------------------------
Micromuse, Inc.(1) 5,600 109,200
- ----------------------------------------------------------------
MicroStrategy, Inc.(1) 4,000 126,000
</TABLE>
50
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE/SERVICES
(CONTINUED)
Network Associates, Inc.(1) 4,400 $ 291,500
- ----------------------------------------------------------------
New Era of Networks, Inc.(1) 4,500 198,000
- ----------------------------------------------------------------
QuadraMed Corp.(1) 5,200 106,600
- ----------------------------------------------------------------
Rational Software Corp.(1) 3,900 103,350
- ----------------------------------------------------------------
SAP AG, Preference 200 96,006
- ----------------------------------------------------------------
Sapient Corp.(1) 2,900 162,400
- ----------------------------------------------------------------
Software AG Systems, Inc.(1) 4,300 77,938
- ----------------------------------------------------------------
SPR, Inc.(1) 2,800 48,300
- ----------------------------------------------------------------
SS&C Technologies, Inc.(1) 5,200 64,350
- ----------------------------------------------------------------
Tier Technologies, Inc., Cl. B(1) 5,100 87,975
- ----------------------------------------------------------------
TSI International Software Ltd.(1) 2,900 138,838
- ----------------------------------------------------------------
Veritas Software Corp.(1) 2,937 176,036
- ----------------------------------------------------------------
Visio Corp.(1) 2,400 87,750
- ----------------------------------------------------------------
Wind River Systems, Inc.(1) 2,750 129,250
------------
4,500,982
- ----------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.3%
Excel Switching Corp.(1) 4,300 163,400
- ----------------------------------------------------------------
Tekelec(1) 6,000 99,375
------------
262,775
- ----------------------------------------------------------------
ELECTRONICS - 2.0%
Bowthorpe plc 18,000 103,559
- ----------------------------------------------------------------
Electrocomponents plc 20,000 133,635
- ----------------------------------------------------------------
Getronics NV 4,000 198,224
- ----------------------------------------------------------------
Hoshiden Corp. 9,000 156,715
- ----------------------------------------------------------------
RF Micro Devices, Inc.(1) 3,600 166,950
- ----------------------------------------------------------------
Sony Corp. 1,400 101,740
- ----------------------------------------------------------------
TDK Corp. 1,000 91,214
- ----------------------------------------------------------------
Uniphase Corp.(1) 3,000 208,125
- ----------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 5,200 237,250
- ----------------------------------------------------------------
VTech Holdings Ltd. 53,000 231,237
- ----------------------------------------------------------------
Waters Corp.(1) 1,100 95,975
------------
1,724,624
- ----------------------------------------------------------------
PHOTOGRAPHY - 0.9%
Eastman Kodak Co. 5,700 410,400
- ----------------------------------------------------------------
Xerox Corp. 2,800 330,400
------------
740,800
- ----------------------------------------------------------------
TELECOMMUNICATIONS - 5.2%
- ----------------------------------------------------------------
TELEPHONE UTILITIES - 2.6%
Bell Atlantic Corp. 10,646 604,826
- ----------------------------------------------------------------
Cable & Wireless Communications
plc(1) 16,000 145,771
</TABLE>
51
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
TELEPHONE UTILITIES (CONTINUED)
Century Telephone Enterprises, Inc. 1,200 $ 81,000
- ----------------------------------------------------------------
Tele Danmark AS, B Shares 2,000 269,941
- ----------------------------------------------------------------
Telecom Italia Mobile SpA 27,500 203,470
- ----------------------------------------------------------------
Telefonica de Espana 4,500 200,400
- ----------------------------------------------------------------
U S West, Inc. 10,600 685,025
------------
2,190,433
- ----------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY -
2.6%
ALLTELL Corp. 7,100 424,669
- ----------------------------------------------------------------
AT&T Corp. 10,000 752,500
- ----------------------------------------------------------------
Ericsson LM, B Shares 6,000 142,865
- ----------------------------------------------------------------
Matsushita Communication Industrial
Co. 2,000 94,128
- ----------------------------------------------------------------
Nippon Telegraph & Telephone Corp. 12 92,397
- ----------------------------------------------------------------
Nokia Oyj, A Shares 1,200 146,940
- ----------------------------------------------------------------
NTT Mobile Communications Network,
Inc. 3 123,179
- ----------------------------------------------------------------
Telecom Italia SpA 23,000 196,677
- ----------------------------------------------------------------
Vodafone Group plc 14,000 226,085
------------
2,199,440
- ----------------------------------------------------------------
TRANSPORTATION - 1.0%
- ----------------------------------------------------------------
AIR TRANSPORTATION - 0.5%
AHL Services, Inc.(1) 4,000 125,000
- ----------------------------------------------------------------
AMR Corp.(1) 1,100 65,313
- ----------------------------------------------------------------
BAA plc 14,000 162,020
- ----------------------------------------------------------------
Delta Air Lines, Inc. 1,000 52,000
------------
404,333
- ----------------------------------------------------------------
RAILROADS & TRUCKERS - 0.5%
GATX Corp. 8,600 325,725
- ----------------------------------------------------------------
MotivePower Industries, Inc.(1) 3,000 96,563
------------
422,288
- ----------------------------------------------------------------
UTILITIES - 3.8%
- ----------------------------------------------------------------
ELECTRIC UTILITIES - 2.6%
CalEnergy, Inc.(1) 2,100 72,844
- ----------------------------------------------------------------
Duke Energy Corp. 5,117 327,808
- ----------------------------------------------------------------
Endesa SA 6,000 159,219
- ----------------------------------------------------------------
FPL Group, Inc. 6,000 369,750
- ----------------------------------------------------------------
Houston Industries, Inc. 8,000 257,000
- ----------------------------------------------------------------
Kansas City Power & Light Co. 5,600 165,900
- ----------------------------------------------------------------
Montana Power Co. 7,500 424,219
- ----------------------------------------------------------------
United Utilities plc 11,000 152,379
- ----------------------------------------------------------------
Vivendi (Ex-Generale des Eaux) 600 155,746
</TABLE>
52
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES (CONTINUED)
Western Resources, Inc. 4,400 $ 146,300
------------
2,231,165
- ----------------------------------------------------------------
GAS UTILITIES - 1.2%
Columbia Energy Group 2,950 170,363
- ----------------------------------------------------------------
El Paso Energy Corp. 10,100 351,606
- ----------------------------------------------------------------
MCN Energy Group, Inc. 4,300 81,969
- ----------------------------------------------------------------
National Fuel Gas Co. 4,400 198,825
- ----------------------------------------------------------------
Questar Corp. 8,200 158,875
- ----------------------------------------------------------------
RWE AG, Preference 2,500 90,812
------------
1,052,450
------------
Total Common Stocks (Cost
$36,277,133) 46,549,258
- ----------------------------------------------------------------
PREFERRED STOCKS - 0.2%
- ----------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series
A, Non-Vtg. 1,100 63,250
- ----------------------------------------------------------------
PRIMEDIA, Inc., 10% Preferred
Stock, Series D(2) 1,000 104,500
- ----------------------------------------------------------------
TCR Holding Corp.:
Series B(1) 88 5
Series C(1) 48 3
Series D(1) 127 7
Series E(1) 263 16
------------
Total Preferred Stocks (Cost
$205,356) 167,781
UNITS
- ----------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES -
0.0%
- ----------------------------------------------------------------
Microcell Telecommunications, Inc.
Wts., Exp. 6/06(2) 500 9,062
- ----------------------------------------------------------------
Price Communications Corp. Wts.,
Exp. 8/07(2) 516 24,639
- ----------------------------------------------------------------
Telefonica de Espana Rts., Exp.
1/99 4,500 4,002
------------
Total Rights, Warrants and
Certificates (Cost $7,062) 37,703
PRINCIPAL
AMOUNT
- ----------------------------------------------------------------
ASSET-BACKED SECURITIES - 0.7%
- ----------------------------------------------------------------
Arcadia Automobile Receivables
Trust, Automobile
Receivables-Backed Nts., Series
1998-B, Cl. A3, 5.95%, 11/15/02 $ 175,000 175,821
- ----------------------------------------------------------------
Dayton Hudson Credit Card Master
Trust, Asset-Backed Certificates,
Series 1997-1,
Cl. A, 6.25%, 8/25/05 125,000 127,695
- ----------------------------------------------------------------
IROQUOIS Trust, Asset-Backed
Amortizing Nts., Series 1997-2, Cl.
A, 6.752%, 6/25/07(2) 175,000 175,820
- ----------------------------------------------------------------
Olympic Automobile Receivables
Trust, Automobile
Receivables-Backed Nts.,
Series 1997-A, Cl. A-5, 6.80%,
2/15/05 150,000 152,250
------------
Total Asset-Backed Securities (Cost
$624,514) 631,586
</TABLE>
53
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
<S> <C> <C>
- ----------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 2.6%
- ----------------------------------------------------------------
Countrywide Funding Corp., Mtg.
Pass-Through Certificates, Series
1994-10, Cl. A3, 6%, 5/25/09 $ 350,000 $ 347,700
- ----------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation
Certificates, Series 1711, Cl. EA,
7%, 3/15/24 200,000 204,562
- ----------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
Gtd. Multiclass Mtg. Participation
Certificates:
6%, 3/1/09 157,298 158,308
Series 1843, Cl. VB, 7%, 4/15/03 50,000 51,062
Series 1849, Cl. VA, 6%, 12/15/10 110,791 111,761
- ----------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Interest-Only Stripped Mtg.-Backed
Security, Series 1542, Cl. QC,
7.50%, 10/15/20(4) 900,000 118,125
Series 1583, Cl. IC, 7.03%-30.30%,
1/15/20(4) 867,613 85,135
Series 1661, Cl. PK, 6.61%-7.47%,
11/15/06(4) 745,601 47,998
- ----------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 126,745 127,146
6.50%, 4/1/26 162,143 163,305
7%, 4/1/00 77,854 77,780
- ----------------------------------------------------------------
Federal National Mortgage Assn.,
Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates,
Trust 1993-190, Cl. Z, 5.85%,
7/25/08 142,928 142,660
- ----------------------------------------------------------------
GE Capital Mortgage Services, Inc.,
Gtd. Real Estate Mtg. Investment
Conduit
Pass-Through Certificates, Series
1994-7, Cl. A18, 6%, 2/25/09 248,607 237,497
- ----------------------------------------------------------------
IMC Home Equity Trust, Asset-Backed
Home Equity Securities, Series
1998-3, Cl. A5, 6.36%, 8/20/22(5) 350,000 350,219
------------
Total Mortgage-Backed Obligations
(Cost $2,219,223) 2,223,258
- ----------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 9.9%
- ----------------------------------------------------------------
Federal Farm Credit Bank,
Medium-Term Nts., 5.24%, 10/1/08 175,000 174,189
- ----------------------------------------------------------------
Federal Home Loan Bank, 5.57%,
8/17/00 350,000 353,118
- ----------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 575,000 627,649
7.50%, 11/15/16 1,310,000 1,629,312
- ----------------------------------------------------------------
STRIPS, 5.618%, 11/15/18(6) 750,000 249,925
- ----------------------------------------------------------------
U.S. Treasury Nts.:
5.625%, 2/15/06 500,000 527,500
5.75%, 8/15/03 1,100,000 1,148,469
6.125%, 8/15/07 350,000 382,594
6.50%, 8/15/05 945,000 1,038,615
6.75%, 6/30/99 445,000 449,867
7.50%, 11/15/01 1,775,000 1,908,125
------------
Total U.S. Government Obligations
(Cost $8,123,278) 8,489,363
</TABLE>
54
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
<S> <C> <C>
- ----------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND
NOTES - 21.8%
- ----------------------------------------------------------------
BASIC MATERIALS - 1.2%
- ----------------------------------------------------------------
CHEMICALS - 0.6%
Laroche Industries, Inc., 9.50% Sr.
Sub. Nts., Series B, 9/15/07 $ 125,000 $ 100,625
- ----------------------------------------------------------------
Morton International, Inc., 9.25%
Credit Sensitive Nts., 6/1/20 50,000 68,058
- ----------------------------------------------------------------
PPG Industries, Inc., 9% Debs.,
5/1/21 50,000 63,959
- ----------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr.
Nts., 12/1/04(2) 125,000 134,375
- ----------------------------------------------------------------
Sterling Chemicals Holdings, Inc.,
0%/13.50% Sr. Disc. Nts.,
8/15/08(7) 125,000 52,500
- ----------------------------------------------------------------
Texas Petrochemicals Corp., 11.125%
Sr. Sub. Nts., Series B, 7/1/06 125,000 123,750
------------
543,267
- ----------------------------------------------------------------
METALS - 0.3%
Alcan Aluminum Ltd., 9.625% Debs.,
7/15/19 100,000 106,882
- ----------------------------------------------------------------
Algoma Steel, Inc., 12.375% First
Mtg. Nts., 7/15/05 100,000 76,500
- ----------------------------------------------------------------
Gulf States Steel, Inc. (Alabama),
13.50% First Mtg. Nts., Series B,
4/15/03 125,000 40,000
- ----------------------------------------------------------------
WCI Steel, Inc., 10% Sr. Nts.,
Series B, 12/1/04 75,000 74,812
------------
298,194
- ----------------------------------------------------------------
PAPER - 0.3%
Malette, Inc., 12.25% Sr. Sec.
Nts., 7/15/04(2) 125,000 135,625
- ----------------------------------------------------------------
Stone Container Corp., 9.875% Sr.
Nts., 2/1/01 125,000 127,187
------------
262,812
- ----------------------------------------------------------------
CAPITAL GOODS - 3.0%
- ----------------------------------------------------------------
INDUSTRIAL SERVICES - 2.0%
Advance Holding Corp., 0%/12.875%
Sr. Disc. Nts., 4/15/09(7) 100,000 58,500
- ----------------------------------------------------------------
Advance Stores Co., Inc., 10.25%
Sr. Unsec. Sub. Nts., Series B,
4/15/08 125,000 126,875
- ----------------------------------------------------------------
Applied Extrusion Technologies,
Inc., 11.50% Sr. Nts., Series B,
4/1/02(2) 75,000 78,562
- ----------------------------------------------------------------
Armco, Inc., 9% Sr. Unsec. Nts.,
9/15/07 50,000 50,500
- ----------------------------------------------------------------
Employee Solutions, Inc., 10% Sr.
Unsec. Nts., Series B, 10/15/04(2) 125,000 94,375
- ----------------------------------------------------------------
Fisher Scientific International,
Inc., 9% Sr. Sub. Nts., 2/1/08(3) 100,000 100,500
- ----------------------------------------------------------------
Jordan Telecommunication Products,
Inc., 9.875% Sr. Nts., Series B,
8/1/07 50,000 49,750
- ----------------------------------------------------------------
KSL Recreation Group, Inc., 10.25%
Sr. Sub. Nts., 5/1/07(2) 100,000 100,000
- ----------------------------------------------------------------
Maxim Group, Inc. (The), 9.25% Sr.
Sub. Nts., Series B, 10/15/07(2) 50,000 49,750
- ----------------------------------------------------------------
Mrs. Fields Holding Co., Units
(each unit consists of $1,000
principal amount of 0%/14% sr. sec.
disc. nts., 12/1/05 and warrants to
purchase shares of common
stock)(2)(7)(8) 150,000 86,250
- ----------------------------------------------------------------
Ocean Energy, Inc., 8.375% Sr.
Unsec. Sub. Nts., Series B, 7/1/08 125,000 116,875
- ----------------------------------------------------------------
Production Resource Group, LLC/PRG
Finance Corp., 11.50% Sr. Unsec.
Sub. Nts., 1/15/08(2) 75,000 73,875
- ----------------------------------------------------------------
Scotia Pacific Co. LLC, 6.55% Nts.,
1/20/07(3) 200,000 193,437
- ----------------------------------------------------------------
Simonds Industries, Inc., 10.25%
Sr. Sub. Nts., 7/1/08(2) 125,000 128,125
- ----------------------------------------------------------------
Sun Co., Inc., 7.95% Debs.,
12/15/01 125,000 131,921
- ----------------------------------------------------------------
Thermadyne Holdings Corp.,
0%/12.50% Sr. Disc. Debs.,
6/1/08(2)(7) 50,000 24,000
</TABLE>
55
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL SERVICES (CONTINUED)
Tyco International Group SA, 6.125%
Unsec. Nts., 6/15/01 $ 175,000 $ 176,864
- ----------------------------------------------------------------
USI American Holdings, Inc., 7.25%
Sr. Nts., Series B, 12/1/06 120,000 118,909
------------
1,759,068
- ----------------------------------------------------------------
MANUFACTURING - 1.0%
Federal-Mogul Corp., 7.50% Nts.,
7/1/04 125,000 126,624
- ----------------------------------------------------------------
Jordan Industries, Inc., 10.375%
Sr. Nts., Series B, 8/1/07(2) 125,000 128,125
- ----------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr.
Nts., 10/1/05(2) 125,000 128,125
- ----------------------------------------------------------------
Titan Wheel International, Inc.,
8.75% Sr. Sub. Nts., 4/1/07 100,000 98,500
- ----------------------------------------------------------------
U.S. Filter Corp., 6.375% Bonds,
5/15/01 175,000 173,839
- ----------------------------------------------------------------
U.S. Industries, Inc., 7.125% Sr.
Nts., 10/15/03(3) 225,000 225,275
------------
880,488
- ----------------------------------------------------------------
CONSUMER CYCLICALS - 6.5%
- ----------------------------------------------------------------
AUTOS & HOUSING - 0.7%
Ainsworth Lumber, Inc., 12.50% Sr.
Nts., 7/15/07(9) 125,000 125,000
- ----------------------------------------------------------------
American Standard Cos., Inc.,
10.875% Sr. Nts., 5/15/99 100,000 100,500
- ----------------------------------------------------------------
Black & Decker Corp., 6.625% Nts.,
11/15/00 85,000 86,453
- ----------------------------------------------------------------
Cambridge Industries, Inc., 10.25%
Sr. Sub. Nts., Series B, 7/15/07 125,000 108,125
- ----------------------------------------------------------------
Oxford Automotive, Inc., 10.125%
Sr. Unsec. Sub. Nts., 6/15/07 125,000 130,000
------------
550,078
- ----------------------------------------------------------------
LEISURE & ENTERTAINMENT - 2.6%
American Skiing Corp., 12% Sr. Sub.
Nts., Series B, 7/15/06(2) 100,000 104,500
- ----------------------------------------------------------------
Ameristar Casinos, Inc., 10.50% Sr.
Sub. Nts., Series B, 8/1/04 50,000 45,750
- ----------------------------------------------------------------
Bally Total Fitness Holding Corp.,
9.875% Sr. Sub. Nts., Series B,
10/15/07 125,000 123,125
- ----------------------------------------------------------------
Casino America, Inc., 12.50% Sr.
Nts., 8/1/03 125,000 139,062
- ----------------------------------------------------------------
Casino Magic of Louisiana Corp.,
13% First Mtg. Nts., Series B,
8/15/03 200,000 227,000
- ----------------------------------------------------------------
Colorado Gaming & Entertainment
Co., 12% Sr. Sec. Nts., 6/1/03(2) 125,000 134,375
- ----------------------------------------------------------------
Harveys Casino Resorts, 10.625% Sr.
Unsec. Sub. Nts., 6/1/06 100,000 108,500
- ----------------------------------------------------------------
Hilton Hotels Corp., 7.375% Nts.,
6/1/02 175,000 176,451
- ----------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr.
Nts., Series A, 8/1/05 125,000 122,500
- ----------------------------------------------------------------
Hollywood Casino Corp., 12.75% Gtd.
Sr. Sec. Nts., 11/1/03 125,000 133,125
- ----------------------------------------------------------------
Horseshoe Gaming LLC, 9.375% Sr.
Sub. Nts., 6/15/07 50,000 51,875
- ----------------------------------------------------------------
Intrawest Corp., 9.75% Sr. Unsec.
Nts., 8/15/08(3) 100,000 103,000
- ----------------------------------------------------------------
Mohegan Tribal Gaming Authority
(Connecticut), 13.50% Sr. Sec.
Nts., Series B, 11/15/02 125,000 150,625
- ----------------------------------------------------------------
Players International, Inc.,
10.875% Sr. Nts., 4/15/05 125,000 134,687
- ----------------------------------------------------------------
Prime Hospitality Corp., 9.75% Sr.
Sub. Nts., 4/1/07 125,000 128,125
- ----------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625%
Sr. Sub. Nts., 7/15/05 125,000 136,875
- ----------------------------------------------------------------
Santa Fe Hotel, Inc., 11% Gtd.
First Mtg. Nts., 12/15/00 100,000 92,000
- ----------------------------------------------------------------
Station Casinos, Inc., 9.75% Sr.
Sub. Nts., 4/15/07 125,000 131,250
------------
2,242,825
</TABLE>
56
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
MEDIA - 2.4%
Adelphia Communications Corp.,
10.50% Sr. Unsec. Nts., Series B,
7/15/04 $ 125,000 $ 140,625
- ----------------------------------------------------------------
Allbritton Communications Co.,
8.875% Sr. Sub. Nts., Series B,
2/1/08 125,000 126,875
- ----------------------------------------------------------------
Big Flower Press Holdings, Inc.,
8.625% Sr. Sub. Nts., 12/1/08(3) 125,000 126,875
- ----------------------------------------------------------------
Century Communications Corp., 9.75%
Sr. Nts., 2/15/02 100,000 108,500
- ----------------------------------------------------------------
Century Communications Corp., Zero
Coupon Sr. Disc. Nts., Series B,
8.497%, 1/15/08(6) 50,000 25,250
- ----------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub.
Debs., 10/15/06 125,000 133,750
- ----------------------------------------------------------------
CSC Holdings, Inc., 9.875% Sr. Sub.
Nts., 5/15/06 50,000 54,750
- ----------------------------------------------------------------
Diva Systems Corp., Units (each
unit consists of $1,000 principal
amount of 0%/12.625% sr. disc.
nts., 3/1/08 and three warrants to
purchase three shares of common
stock)(3)(7)(8) 200,000 83,000
- ----------------------------------------------------------------
EchoStar Satellite Broadcasting
Corp., 0%/13.125% Sr. Sec. Disc.
Nts., 3/15/04(7) 100,000 100,250
- ----------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285%
Sr. Disc. Debs., Series B,
4/15/10(7) 175,000 120,750
- ----------------------------------------------------------------
Fox/Liberty Networks LLC, 8.875%
Sr. Nts., 8/15/07 50,000 51,250
- ----------------------------------------------------------------
Hollinger International Publishing,
Inc., 9.25% Gtd. Sr. Sub. Nts.,
3/15/07 125,000 132,500
- ----------------------------------------------------------------
Interepublic National Radio Sales
Corp., 10% Sr. Unsec. Sub. Nts.,
7/1/08(2) 125,000 129,375
- ----------------------------------------------------------------
James Cable Partners LP, 10.75% Sr.
Nts., Series B, 8/15/04 100,000 104,500
- ----------------------------------------------------------------
Marcus Cable Operating Co.
LP/Marcus Cable Capital Corp.,
0%/13.50% Gtd. Sr. Sub. Disc. Nts.,
Series II, 8/1/04(7) 125,000 126,562
- ----------------------------------------------------------------
MDC Communications Corp., 10.50%
Sr. Sub. Nts., 12/1/06 125,000 128,125
- ----------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10%
Sr. Sub. Nts., 9/30/05 125,000 133,125
- ----------------------------------------------------------------
Spanish Broadcasting Systems, Inc.,
11% Sr. Nts., 3/15/04 100,000 106,500
- ----------------------------------------------------------------
TCI Satellite Entertainment, Inc.,
10.875% Sr. Sub. Nts., 2/15/07 125,000 41,875
- ----------------------------------------------------------------
United International Holdings,
Inc., 0%/10.75% Sr. Disc. Nts.,
Series B, 2/15/08(7) 100,000 54,500
------------
2,028,937
- ----------------------------------------------------------------
RETAIL: GENERAL - 0.5%
Federated Department Stores, Inc.,
6.125% Cv. Sub. Nts., 9/1/01(5) 200,000 202,341
- ----------------------------------------------------------------
Price/Costco Cos., Inc., 7.125% Sr.
Nts., 6/15/05 90,000 96,886
- ----------------------------------------------------------------
William Carter Co., 10.375% Sr.
Sub. Nts., Series A, 12/1/06 125,000 132,500
------------
431,727
- ----------------------------------------------------------------
RETAIL: SPECIALTY - 0.3%
K Mart Corp., 7.75% Debs., 10/1/12 125,000 128,793
- ----------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub.
Nts., 10/15/07 150,000 157,875
------------
286,668
- ----------------------------------------------------------------
CONSUMER STAPLES - 1.1%
- ----------------------------------------------------------------
CONSUMER SERVICES - 0.1%
Lamar Advertising Co., 8.625% Sr.
Sub. Nts., 9/15/07 100,000 105,500
- ----------------------------------------------------------------
ENTERTAINMENT - 0.2%
Tricon Global Restaurants, Inc.,
7.45% Sr. Unsec. Nts., 5/15/05 125,000 129,000
- ----------------------------------------------------------------
FOOD - 0.5%
AmeriServe Food Distribution, Inc.,
8.875% Sr. Nts., 10/15/06 125,000 116,250
</TABLE>
57
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
FOOD (CONTINUED)
Dole Food Distributing, Inc., 6.75%
Nts., 7/15/00 $ 115,000 $ 116,119
- ----------------------------------------------------------------
Grand Metro Inventory Corp., 7.125%
Nts., 9/15/04 175,000 188,077
------------
420,446
- ----------------------------------------------------------------
FOOD & DRUG RETAILERS - 0.1%
Jitney-Jungle Stores of America,
Inc., 10.375% Sr. Sub. Nts.,
9/15/07 50,000 51,500
- ----------------------------------------------------------------
HOUSEHOLD GOODS - 0.2%
Kimberly-Clark Corp., 7.875% Debs.,
2/1/23 50,000 55,578
- ----------------------------------------------------------------
Revlon Consumer Products Corp.,
8.625% Sr. Unsec. Sub. Nts., 2/1/08 125,000 114,375
------------
169,953
- ----------------------------------------------------------------
ENERGY - 1.0%
- ----------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.8%
Coastal Corp.:
8.125% Sr. Nts., 9/15/02 50,000 53,592
8.75% Sr. Nts., 5/15/99 35,000 35,367
- ----------------------------------------------------------------
Crown Central Petroleum Corp.,
10.875% Sr. Nts., 2/1/05 50,000 48,250
- ----------------------------------------------------------------
Forcenergy, Inc., 8.50% Sr. Sub.
Nts., Series B, 2/15/07 50,000 37,250
- ----------------------------------------------------------------
Gulf Canada Resources Ltd.:
8.25% Sr. Nts., 3/15/17 75,000 67,828
9% Debs., 8/15/99 75,000 75,375
- ----------------------------------------------------------------
Louisiana Land & Exploration Co.,
7.65% Debs., 12/1/23 50,000 54,067
- ----------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50%
Nts., 3/31/07 125,000 133,183
- ----------------------------------------------------------------
RAM Energy, Inc., 11.50% Sr. Unsec.
Nts., 2/15/08 75,000 52,875
- ----------------------------------------------------------------
Southwest Royalties, Inc., 10.50%
Sr. Nts., Series B, 10/15/04 125,000 50,625
- ----------------------------------------------------------------
Transamerican Energy Corp., 11.50%
Sr. Nts., Series B, 6/15/02(2) 50,000 16,250
- ----------------------------------------------------------------
Williams Holdings of Delaware,
Inc., 6.25% Sr. Unsec. Debs.,
2/1/06 50,000 51,450
------------
676,112
- ----------------------------------------------------------------
OIL-DOMESTIC - 0.1%
Norcen Energy Resources Ltd., 6.80%
Debs., 7/2/02 50,000 50,569
- ----------------------------------------------------------------
Standard Oil, 9% Gtd. Debs., 6/1/19 70,000 70,761
------------
121,330
- ----------------------------------------------------------------
OIL-INTERNATIONAL - 0.1%
Abraxas Petroleum Corp./CDN Abraxas
Petroleum Ltd., 11.50% Sr. Unsec.
Nts.,
Series D, 11/1/04 100,000 76,000
- ----------------------------------------------------------------
FINANCIAL - 2.8%
- ----------------------------------------------------------------
BANKS - 0.4%
Capital One Bank, Inc., 6.375% Sr.
Nts., 2/15/03 150,000 144,392
- ----------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc.,
9.90% Sub. Nts., 6/15/01 85,000 93,217
- ----------------------------------------------------------------
Integra Financial Corp., 6.50% Sub.
Nts., 4/15/00 105,000 106,394
------------
344,003
- ----------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.3%
American General Institutional
Capital B, 8.125% Bonds, Series B,
3/15/46(3) 125,000 144,287
</TABLE>
58
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
Capital One Financial Corp., 7.25%
Nts., 12/1/03 $ 40,000 $ 39,370
- ----------------------------------------------------------------
Countrywide Home Loans, Inc., 6.05%
Medium-Term Nts., Series D, 3/1/01 220,000 220,915
- ----------------------------------------------------------------
General Electric Capital Corp.,
5.77% Nts., Series A, 8/27/01 200,000 202,229
- ----------------------------------------------------------------
General Motors Acceptance Corp.,
5.625% Nts., 2/15/01 175,000 175,625
- ----------------------------------------------------------------
GS Escrow Corp., 6.75% Sr. Nts.,
8/1/01(3) 200,000 197,240
- ----------------------------------------------------------------
Olympic Financial Ltd., Units (each
unit consists of $1,000 principal
amount of 11.50% sr. nts., 3/15/07
and one warrant to purchase 6.84
shares of common stock)(2)(8) 125,000 94,375
------------
1,074,041
- ----------------------------------------------------------------
INSURANCE - 0.5%
Aetna Industries, Inc., 11.875% Sr.
Nts., 10/1/06(2) 100,000 105,500
- ----------------------------------------------------------------
Conseco Financing Trust III, 8.796%
Bonds, 4/1/27 100,000 95,931
- ----------------------------------------------------------------
Conseco, Inc., 6.40% Nts., 6/15/01 175,000 167,835
- ----------------------------------------------------------------
Travelers Property Casualty Corp.,
6.75% Nts., 4/15/01 85,000 87,046
------------
456,312
- ----------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS -
0.6%
Chelsea GCA Realty Partner, Inc.,
7.75% Unsec. Nts., 1/26/01 280,000 278,209
- ----------------------------------------------------------------
First Industrial LP, 7.15% Bonds,
5/15/27 60,000 60,507
- ----------------------------------------------------------------
Simon DeBartolo Group, Inc., 6.625%
Nts., 6/15/03 175,000 173,196
------------
511,912
- ----------------------------------------------------------------
HEALTHCARE - 0.9%
- ----------------------------------------------------------------
HEALTHCARE/DRUGS - 0.1%
Integrated Health Services, Inc.,
9.25% Sr. Sub. Nts., Series A,
1/15/08 50,000 47,000
- ----------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES -
0.8%
Columbia/HCA Healthcare Corp.,
6.875% Nts., 7/15/01 145,000 143,963
- ----------------------------------------------------------------
Dade International, Inc., 11.125%
Sr. Sub. Nts., 5/1/06 100,000 111,500
- ----------------------------------------------------------------
ICN Pharmaceutical, Inc., 8.75% Sr.
Nts., 11/15/08(3) 125,000 126,875
- ----------------------------------------------------------------
Kinetic Concepts, Inc., 9.625% Sr.
Unsec. Sub. Nts., Series B, 11/1/07 50,000 48,125
- ----------------------------------------------------------------
Paracelsus Healthcare Corp., 10%
Sr. Unsec. Sub. Nts., 8/15/06(2) 100,000 90,500
- ----------------------------------------------------------------
Playtex Products, Inc., 8.875% Sr.
Nts., 7/15/04 75,000 78,938
- ----------------------------------------------------------------
Tenet Healthcare Corp., 8% Sr.
Nts., 1/15/05 75,000 77,712
------------
677,613
- ----------------------------------------------------------------
TELECOMMUNICATIONS - 3.7%
- ----------------------------------------------------------------
TELEPHONE UTILITIES - 0.1%
Teligent, Inc., 11.50% Sr. Nts.,
12/1/07 125,000 117,500
- ----------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY -
3.6%
AT&T Capital Corp., 6.25%
Medium-Term Nts., Series F, 5/15/01 175,000 172,773
- ----------------------------------------------------------------
Coaxial Communications, Inc., 10%
Sr. Unsec. Nts., 8/15/06(2) 125,000 129,688
- ----------------------------------------------------------------
Comcast Cellular Communications,
Inc., 9.50% Sr. Nts., 5/1/07 125,000 133,125
- ----------------------------------------------------------------
Comcast UK Cable Partner Ltd.,
0%/11.20% Sr. Disc. Debs.,
11/15/07(7) 125,000 106,250
- ----------------------------------------------------------------
Diamond Cable Communications plc,
0%/10.75% Sr. Disc. Nts.,
2/15/07(7) 125,000 88,750
</TABLE>
59
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS/TECHNOLOGY
(CONTINUED)
e.spire Communications, Inc.,
0%/13% Sr. Disc. Nts., 11/1/05(7) $ 100,000 $ 75,500
- ----------------------------------------------------------------
Exodus Communications, Inc., 11.25%
Sr. Nts., 7/1/08 125,000 125,625
- ----------------------------------------------------------------
Globix Corp., 13% Sr. Unsec. Nts.,
5/1/05 100,000 82,500
- ----------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr.
Disc. Nts., 12/15/05(7) 125,000 90,313
- ----------------------------------------------------------------
Hermes Europe Railtel BV, 10.375%
Sr. Nts., 1/15/09(3)(10) 125,000 126,875
- ----------------------------------------------------------------
ICG Holdings, Inc., 0%/11.625% Sr.
Disc. Nts., 3/15/07(7) 125,000 81,250
- ----------------------------------------------------------------
International CableTel, Inc.,
0%/11.50% Sr. Deferred Coupon Nts.,
Series B, 2/1/06(7) 200,000 165,000
- ----------------------------------------------------------------
Iridium LLC/Iridium Capital Corp.,
11.25% Sr. Nts., Series C/EN,
7/15/05 125,000 108,125
- ----------------------------------------------------------------
Level 3 Communications, Inc.,
9.125% Sr. Unsec. Nts., 5/1/08 125,000 124,063
- ----------------------------------------------------------------
Microcell Telecommunications, Inc.,
0%/14% Sr. Disc. Nts., Series B,
6/1/06(7) 125,000 93,438
- ----------------------------------------------------------------
Nextel Communications, Inc.,
0%/9.75% Sr. Disc. Nts., 8/15/04(7) 150,000 146,250
- ----------------------------------------------------------------
Optel, Inc., 11.50% Sr. Unsec.
Nts., 7/1/08 125,000 122,500
- ----------------------------------------------------------------
Price Communications Cellular
Holdings, Inc., 11.25% Sr. Nts.,
8/15/08(9) 100,000 95,000
- ----------------------------------------------------------------
PSINet, Inc., 11.50% Sr. Nts.,
11/1/08(3) 100,000 105,250
- ----------------------------------------------------------------
Qwest Communications International,
Inc., 0%/9.47% Sr. Disc. Nts.,
10/15/07(7) 125,000 97,188
- ----------------------------------------------------------------
RSL Communications plc, 9.125% Sr.
Unsec. Nts., 3/1/08 100,000 92,500
- ----------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr.
Sub. Nts., Series B, 5/15/08 100,000 100,750
- ----------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum
Finance Corp., 11% Sr. Nts.,
8/15/06 100,000 116,000
- ----------------------------------------------------------------
Talton Holdings, Inc., 11% Gtd. Sr.
Unsec. Bonds, Series B, 6/30/07 125,000 119,375
- ----------------------------------------------------------------
TeleWest Communications plc:
0%/11% Sr. Disc. Debs., 10/1/07(7) 75,000 63,000
9.625% Sr. Debs., 10/1/06 75,000 77,625
- ----------------------------------------------------------------
US West Capital Funding, Inc.,
6.125% Nts., 7/15/02 200,000 204,691
- ----------------------------------------------------------------
Western Wireless Corp., 10.50% Sr.
Sub. Nts., 2/1/07 50,000 53,250
- ----------------------------------------------------------------
Winstar Communications, Inc.,
0%/14% Sr. Disc. Nts., 10/15/05(7) 50,000 35,750
------------
3,132,404
- ----------------------------------------------------------------
TRANSPORTATION - 0.5%
- ----------------------------------------------------------------
AIR TRANSPORTATION - 0.2%
Canadian Airlines Corp., 12.25% Sr.
Nts., 8/1/06 75,000 51,375
- ----------------------------------------------------------------
Trans World Airlines, Inc., 11.375%
Unsec. Nts., 3/1/06 125,000 79,375
------------
130,750
- ----------------------------------------------------------------
RAILROADS & TRUCKERS - 0.3%
CSX Corp., 7.05% Debs., 5/1/02 70,000 73,140
- ----------------------------------------------------------------
Norfolk Southern Corp., 7.35% Nts.,
5/15/07 75,000 82,769
- ----------------------------------------------------------------
Union Pacific Corp., 7% Nts.,
6/15/00 105,000 107,018
------------
262,927
- ----------------------------------------------------------------
SHIPPING - 0.0%
Golden Ocean Group Ltd., 10% Sr.
Unsec. Nts., 8/31/01 100,000 30,000
</TABLE>
60
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT NOTE 1
- ----------------------------------------------------------------
<S> <C> <C>
UTILITIES - 1.1%
- ----------------------------------------------------------------
ELECTRIC UTILITIES - 0.4%
AES Corp., 8% Sr. Nts., 12/31/08 $ 100,000 $ 99,057
- ----------------------------------------------------------------
Niagara Mohawk Power Corp., 7.125%
Sr. Unsec. Nts., Series C, 7/1/01 200,000 204,107
------------
303,164
- ----------------------------------------------------------------
GAS UTILITIES - 0.7%
Northern Illinois Gas Co., 6.45%
First Mtg. Bonds, 8/1/01 200,000 203,127
- ----------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50%
Bonds, 4/1/17 125,000 133,429
- ----------------------------------------------------------------
Williams Cos., Inc., 6.20% Nts.,
8/1/02 225,000 225,740
------------
562,296
------------
Total Non-Convertible Corporate
Bonds and Notes (Cost $19,090,301) 18,683,827
- ----------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND
NOTES - 0.0%
- ----------------------------------------------------------------
BankAmerica Corp. (New), 8.50%
Exchangeable Sub. Capital Nts.,
3/1/99 (exchangeable for common,
perpetual preferred stock or other
capital securities) (Cost $37,251) 35,000 35,134
- ----------------------------------------------------------------
REPURCHASE AGREEMENTS - 10.3%
- ----------------------------------------------------------------
Repurchase agreement with
PaineWebber, Inc., 4.85%, dated
12/31/98, to be repurchased at
$8,835,759 on 1/4/99,
collateralized by U.S. Treasury
Nts., 7.75%, 11/30/99, with a value
of $9,023,454 (Cost $8,831,000) 8,831,000 8,831,000
- ----------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST
$75,415,118) 99.7% 85,648,910
- ----------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.3 224,500
------------ ------------
NET ASSETS 100.0% $85,873,410
------------ ------------
------------ ------------
</TABLE>
1. Non-income producing security.
2. Identifies issues considered to be illiquid or restricted - See Note 6 of
Notes to Financial Statements.
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 $1,711,324 or 1.99% of the Fund's net
assets as of December 31, 1998.
4. 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.
5. Represents the current interest rate for a variable rate security.
6. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
8. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, principal amount disclosed represents total
underlying principal.
9. Interest or dividend is paid in kind.
10. When-issued security to be delivered and settled after December 31, 1998.
See accompanying Notes to Financial Statements.
61
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 72.0%
- -------------------------------------------------------------------------------------
BASIC MATERIALS - 0.9%
- -------------------------------------------------------------------------------------
CHEMICALS - 0.6%
Dexter Corp. 6,000 $ 188,625
- -------------------------------------------------------------------------------------
Ethyl Corp. 16,200 94,162
- -------------------------------------------------------------------------------------
Fuji Photo Film Co. 2,000 74,172
- -------------------------------------------------------------------------------------
IMC Global, Inc. 2,834 60,577
-----------
417,536
- -------------------------------------------------------------------------------------
METALS - 0.2%
Carpenter Technology Corp. 4,300 145,931
- -------------------------------------------------------------------------------------
PAPER - 0.1%
Unisource Worldwide, Inc. 9,000 65,250
- -------------------------------------------------------------------------------------
CAPITAL GOODS - 7.9%
- -------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 1.3%
General Dynamics Corp. 11,500 674,187
- -------------------------------------------------------------------------------------
Kellstrom Industries, Inc.(1) 3,200 92,000
- -------------------------------------------------------------------------------------
Lockheed Martin Corp. 2,400 203,400
-----------
969,587
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.1%
Toshiba Corp. 19,000 112,909
- -------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 3.5%
Casella Waste Systems, Inc., Cl. A(1) 3,000 111,375
- -------------------------------------------------------------------------------------
Hays plc 26,000 222,006
- -------------------------------------------------------------------------------------
International Network Services(1) 4,000 266,000
- -------------------------------------------------------------------------------------
Kendle International, Inc.(1) 3,800 88,825
- -------------------------------------------------------------------------------------
Knoll, Inc.(1) 900 26,662
- -------------------------------------------------------------------------------------
Manhattan Associates, Inc.(1) 3,000 81,750
- -------------------------------------------------------------------------------------
Metamor Worldwide, Inc.(1) 4,800 120,000
- -------------------------------------------------------------------------------------
Metzler Group, Inc.(1) 3,500 170,406
- -------------------------------------------------------------------------------------
NCO Group, Inc.(1) 2,500 112,500
- -------------------------------------------------------------------------------------
New England Business Service, Inc. 6,300 246,487
- -------------------------------------------------------------------------------------
Rental Service Corp.(1) 4,100 64,319
- -------------------------------------------------------------------------------------
SM&A Corp.(1) 1,400 26,600
- -------------------------------------------------------------------------------------
Tetra Tech, Inc.(1) 11,175 302,423
- -------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A(1) 6,800 340,000
- -------------------------------------------------------------------------------------
United Rentals, Inc.(1) 2,800 92,750
- -------------------------------------------------------------------------------------
Viad Corp. 5,300 160,987
- -------------------------------------------------------------------------------------
Whittman-Hart, Inc.(1) 5,000 138,125
-----------
2,571,215
</TABLE>
62
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING - 3.0%
BBA Group plc 21,000 $ 130,393
- -------------------------------------------------------------------------------------
Brambles Industries Ltd. 6,000 146,202
- -------------------------------------------------------------------------------------
Herman Miller, Inc. 2,300 61,812
- -------------------------------------------------------------------------------------
Ingersoll-Rand Co. 3,500 164,281
- -------------------------------------------------------------------------------------
Mannesmann AG 2,500 289,323
- -------------------------------------------------------------------------------------
Mettler-Toledo International, Inc.(1) 3,900 109,444
- -------------------------------------------------------------------------------------
PACCAR, Inc. 7,200 296,100
- -------------------------------------------------------------------------------------
ROHN Industries, Inc.(1) 12,000 41,250
- -------------------------------------------------------------------------------------
Smiths Industries plc 12,000 167,524
- -------------------------------------------------------------------------------------
Taiyo Yuden Co. 8,000 94,517
- -------------------------------------------------------------------------------------
Textron, Inc. 4,600 349,312
- -------------------------------------------------------------------------------------
United Technologies Corp. 2,800 304,500
-----------
2,154,658
- -------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 7.7%
- -------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.7%
Bridgestone Corp. 5,000 113,245
- -------------------------------------------------------------------------------------
Cie de Saint Gobain 1,000 141,246
- -------------------------------------------------------------------------------------
Federal-Mogul Corp. 5,400 321,300
- -------------------------------------------------------------------------------------
Fleetwood Enterprises, Inc. 2,600 90,350
- -------------------------------------------------------------------------------------
Kaufman & Broad Home Corp. 1,400 40,250
- -------------------------------------------------------------------------------------
Kroll-O'Gara Co. (The)(1) 4,700 185,356
- -------------------------------------------------------------------------------------
Maytag Corp. 4,900 305,025
- -------------------------------------------------------------------------------------
Overseas Union Enterprise Ltd. 40,000 79,517
- -------------------------------------------------------------------------------------
Owens Corning 3,500 124,031
- -------------------------------------------------------------------------------------
Sonic Automotive, Inc.(1) 2,700 92,981
- -------------------------------------------------------------------------------------
Suzuki Motor Corp. 4,000 47,329
- -------------------------------------------------------------------------------------
USG Corp. 3,000 152,812
- -------------------------------------------------------------------------------------
Valeo SA 2,600 204,984
- -------------------------------------------------------------------------------------
Whirlpool Corp. 900 49,837
-----------
1,948,263
- -------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.7%
CDL Hotels International Ltd. 300,000 77,062
- -------------------------------------------------------------------------------------
Coach USA, Inc.(1) 4,000 138,750
- -------------------------------------------------------------------------------------
Hasbro, Inc. 1,500 54,187
- -------------------------------------------------------------------------------------
Nintendo Co. Ltd. 1,200 116,026
- -------------------------------------------------------------------------------------
Pegasus Systems, Inc.(1) 3,100 111,600
-----------
497,625
- -------------------------------------------------------------------------------------
MEDIA - 0.7%
Benpres Holdings Corp.(1) 120,000 19,435
- -------------------------------------------------------------------------------------
Citadel Communications Corp.(1) 3,300 85,387
- -------------------------------------------------------------------------------------
VNU-Verenigde Nederlandse Uitgeverbedrijven Verenigd Bezit 5,000 188,632
</TABLE>
63
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA (CONTINUED)
Wolters Kluwer NV 900 $ 192,693
-----------
486,147
- -------------------------------------------------------------------------------------
RETAIL: GENERAL - 0.9%
Circle K Japan Co. Ltd. 1,300 57,051
- -------------------------------------------------------------------------------------
Dayton Hudson Corp. 3,000 162,750
- -------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 1,200 52,275
- -------------------------------------------------------------------------------------
Fruit of the Loom, Inc., Cl. A(1) 1,300 17,956
- -------------------------------------------------------------------------------------
Gucci Group NV 1,300 63,212
- -------------------------------------------------------------------------------------
Ito-Yokado Co. Ltd. 2,000 139,514
- -------------------------------------------------------------------------------------
K Mart Corp.(1) 3,400 52,062
- -------------------------------------------------------------------------------------
Nordstrom, Inc. 1,800 62,437
- -------------------------------------------------------------------------------------
Shaw Industries, Inc. 2,300 55,775
-----------
663,032
- -------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 2.7%
Ann Taylor Stores Corp.(1) 3,800 149,862
- -------------------------------------------------------------------------------------
Boots Co. plc 10,000 169,365
- -------------------------------------------------------------------------------------
Brown Group, Inc. 9,700 170,356
- -------------------------------------------------------------------------------------
Children's Place Retail Stores, Inc.(1) 2,800 70,350
- -------------------------------------------------------------------------------------
Guitar Center, Inc.(1) 4,900 120,662
- -------------------------------------------------------------------------------------
Hennes & Mauritz AB, B Shares 3,200 261,352
- -------------------------------------------------------------------------------------
Insight Enterprises, Inc.(1) 6,500 330,687
- -------------------------------------------------------------------------------------
Kingfisher plc 15,000 150,464
- -------------------------------------------------------------------------------------
Koninklijke Ahold NV 6,000 221,883
- -------------------------------------------------------------------------------------
Payless ShoeSource, Inc.(1) 1,200 56,850
- -------------------------------------------------------------------------------------
Restoration Hardware, Inc.(1) 5,800 155,875
- -------------------------------------------------------------------------------------
School Specialty, Inc.(1) 4,700 100,462
-----------
1,958,168
- -------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.4%
- -------------------------------------------------------------------------------------
BEVERAGES - 0.7%
Anheuser-Busch Cos., Inc. 5,500 360,937
- -------------------------------------------------------------------------------------
Scottish & Newcastle plc 15,000 169,489
-----------
530,426
- -------------------------------------------------------------------------------------
CONSUMER SERVICES - 0.8%
Alternative Living Services, Inc.(1) 6,900 236,325
- -------------------------------------------------------------------------------------
Hanover Compressor Co.(1) 3,400 87,337
- -------------------------------------------------------------------------------------
Hertz Corp., Cl. A 1,700 77,562
- -------------------------------------------------------------------------------------
Lamar Advertising Co., Cl. A(1) 5,150 191,837
-----------
593,061
- -------------------------------------------------------------------------------------
ENTERTAINMENT - 0.5%
CKE Restaurants, Inc. 5,610 165,144
</TABLE>
64
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
ENTERTAINMENT (CONTINUED)
Piccadilly Cafeterias, Inc. 9,300 $ 97,650
- -------------------------------------------------------------------------------------
Shaw Brothers (Hong Kong) Ltd. 330,000 142,700
-----------
405,494
- -------------------------------------------------------------------------------------
FOOD - 2.3%
General Mills, Inc. 5,500 427,625
- -------------------------------------------------------------------------------------
Groupe Danone 800 229,144
- -------------------------------------------------------------------------------------
IBP, Inc. 8,000 233,000
- -------------------------------------------------------------------------------------
Jeronimo Martins & Filho SA 3,000 164,122
- -------------------------------------------------------------------------------------
Kerry Group plc, Cl. A 10,000 136,426
- -------------------------------------------------------------------------------------
Koninklijke Numico NV 3,200 152,611
- -------------------------------------------------------------------------------------
Nestle SA 100 217,613
- -------------------------------------------------------------------------------------
Suiza Foods Corp.(1) 2,300 117,156
-----------
1,677,697
- -------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS - 1.7%
Albertson's, Inc. 3,300 210,169
- -------------------------------------------------------------------------------------
Colruyt SA 250 209,590
- -------------------------------------------------------------------------------------
Kroger Co.(1) 3,400 205,700
- -------------------------------------------------------------------------------------
Safeway, Inc.(1) 3,600 219,375
- -------------------------------------------------------------------------------------
United Natural Foods, Inc.(1) 5,300 127,862
- -------------------------------------------------------------------------------------
Whole Foods Market, Inc.(1) 2,500 120,937
- -------------------------------------------------------------------------------------
William Morrison Supermarkets plc 34,000 156,151
-----------
1,249,784
- -------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.4%
Blyth Industries, Inc.(1) 4,100 128,125
- -------------------------------------------------------------------------------------
Dial Corp. (The) 6,000 173,250
- -------------------------------------------------------------------------------------
Fort James Corp. 4,587 183,480
- -------------------------------------------------------------------------------------
L'OREAL 350 253,133
- -------------------------------------------------------------------------------------
Premark International, Inc. 5,600 193,900
- -------------------------------------------------------------------------------------
Reckitt & Colman plc 8,000 105,581
-----------
1,037,469
- -------------------------------------------------------------------------------------
ENERGY - 2.3%
- -------------------------------------------------------------------------------------
OIL - DOMESTIC - 2.1%
Amoco Corp. 3,800 229,425
- -------------------------------------------------------------------------------------
Atlantic Richfield Co. 3,700 241,425
- -------------------------------------------------------------------------------------
Chevron Corp. 3,300 273,694
- -------------------------------------------------------------------------------------
Exxon Corp. 7,200 526,500
- -------------------------------------------------------------------------------------
Occidental Petroleum Corp. 6,200 104,625
- -------------------------------------------------------------------------------------
Total SA, B Shares 1,400 141,854
-----------
1,517,523
</TABLE>
65
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
OIL - INTERNATIONAL - 0.2%
Shell Transport & Trading Co. plc 30,000 $ 183,043
- -------------------------------------------------------------------------------------
FINANCIAL - 11.1%
- -------------------------------------------------------------------------------------
BANKS - 3.2%
Banco Popular Espanol SA 2,200 166,136
- -------------------------------------------------------------------------------------
Banco Santander SA 120 2,388
- -------------------------------------------------------------------------------------
Bank Handlowy W Warszawie, GDR(2) 2,800 36,400
- -------------------------------------------------------------------------------------
Bank One Corp. 9,500 485,094
- -------------------------------------------------------------------------------------
BankBoston Corp. 8,300 323,181
- -------------------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 1,950 154,312
- -------------------------------------------------------------------------------------
Credito Italiano SpA 30,000 178,211
- -------------------------------------------------------------------------------------
First Union Corp. 8,600 522,988
- -------------------------------------------------------------------------------------
Lloyds TSB Group plc 18,000 255,166
- -------------------------------------------------------------------------------------
Nordbanken Holding AB 28,000 179,630
-----------
2,303,506
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.2%
Cattles plc 15,000 157,303
- -------------------------------------------------------------------------------------
Citigroup, Inc. 9,600 475,200
- -------------------------------------------------------------------------------------
Fannie Mae 2,800 207,200
- -------------------------------------------------------------------------------------
HealthCare Financial Partners, Inc.(1) 4,400 160,600
- -------------------------------------------------------------------------------------
ING Groep NV 3,000 183,037
- -------------------------------------------------------------------------------------
Lend Lease Corp. Ltd. 8,000 107,890
- -------------------------------------------------------------------------------------
Northern Rock plc 20,000 190,339
- -------------------------------------------------------------------------------------
Perlis Plantations Berhad(3) 25,500 20,937
- -------------------------------------------------------------------------------------
Promise Co. Ltd. 1,400 72,689
-----------
1,575,195
- -------------------------------------------------------------------------------------
INSURANCE - 4.2%
AEGON NV 1,800 221,179
- -------------------------------------------------------------------------------------
Allstate Corp. 2,500 96,563
- -------------------------------------------------------------------------------------
American General Corp. 5,700 444,600
- -------------------------------------------------------------------------------------
American International Group, Inc. 2,500 241,563
- -------------------------------------------------------------------------------------
Assicurazioni Generali SpA 4,000 167,385
- -------------------------------------------------------------------------------------
AXA SA 1,400 203,007
- -------------------------------------------------------------------------------------
Cigna Corp. 2,900 224,206
- -------------------------------------------------------------------------------------
Conseco, Inc. 3,900 119,194
- -------------------------------------------------------------------------------------
Equitable Cos., Inc. 100 5,788
- -------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 1,900 104,263
- -------------------------------------------------------------------------------------
HSB Group, Inc. 3,750 153,984
- -------------------------------------------------------------------------------------
Irish Life plc 15,000 141,346
- -------------------------------------------------------------------------------------
Jefferson-Pilot Corp. 3,900 292,500
</TABLE>
66
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE (CONTINUED)
Pre-Paid Legal Services, Inc.(1) 6,700 $ 221,100
- -------------------------------------------------------------------------------------
Transamerica Corp. 3,000 346,500
- -------------------------------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 2,300 71,300
-----------
3,054,478
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 1.2%
Camden Property Trust 7,200 187,200
- -------------------------------------------------------------------------------------
Cornerstone Properties, Inc. 11,400 178,125
- -------------------------------------------------------------------------------------
Healthcare Realty Trust, Inc. 6,814 152,037
- -------------------------------------------------------------------------------------
HRPT Properties Trust 9,200 129,375
- -------------------------------------------------------------------------------------
Meditrust Corp., Paired Stock 5,407 81,781
- -------------------------------------------------------------------------------------
Tower Realty Trust, Inc. 6,500 130,813
-----------
859,331
- -------------------------------------------------------------------------------------
SAVINGS & LOANS - 0.3%
Golden West Financial Corp. 2,100 192,544
- -------------------------------------------------------------------------------------
HEALTHCARE - 6.5%
- -------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 3.5%
Amgen, Inc.(1) 2,800 292,775
- -------------------------------------------------------------------------------------
Fresenius AG, Preference 900 189,130
- -------------------------------------------------------------------------------------
Gedeon Richter Ltd., GDR(2) 2,500 106,875
- -------------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1) 7,800 388,050
- -------------------------------------------------------------------------------------
Idexx Laboratories, Inc.(1) 2,900 78,028
- -------------------------------------------------------------------------------------
Jones Pharma, Inc. 3,500 127,750
- -------------------------------------------------------------------------------------
Medicis Pharmaceutical Corp., Cl. A(1) 3,900 232,538
- -------------------------------------------------------------------------------------
Novartis AG 100 196,507
- -------------------------------------------------------------------------------------
Novo-Nordisk AS, B Shares 1,500 197,978
- -------------------------------------------------------------------------------------
Sanofi SA 1,500 247,046
- -------------------------------------------------------------------------------------
Schering AG 1,200 150,943
- -------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 4,000 153,642
- -------------------------------------------------------------------------------------
Zeneca Group plc 5,000 216,949
-----------
2,578,211
- -------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 3.0%
Bard (C.R.), Inc. 13,600 673,200
- -------------------------------------------------------------------------------------
Luxottica Group SpA, Sponsored ADR 12,000 144,000
- -------------------------------------------------------------------------------------
Olympus Optical Co. Ltd. 9,000 103,232
- -------------------------------------------------------------------------------------
Orthodontic Centers of America, Inc.(1) 6,200 120,513
- -------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc.(1) 3,900 233,756
- -------------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(2) 5,900 97,940
- -------------------------------------------------------------------------------------
Province Healthcare Co.(1) 4,400 157,850
- -------------------------------------------------------------------------------------
Renal Care Group, Inc.(1) 6,200 178,638
- -------------------------------------------------------------------------------------
SmithKline Beecham plc 17,000 236,763
</TABLE>
67
<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)
Tenet Healthcare Corp.(1) 2,590 $ 67,988
- -------------------------------------------------------------------------------------
Terumo Corp. 2,000 46,976
- -------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 2,000 59,125
- -------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(1) 500 43,500
-----------
2,163,481
- -------------------------------------------------------------------------------------
TECHNOLOGY - 14.9%
- -------------------------------------------------------------------------------------
COMPUTER HARDWARE - 3.7%
3Com Corp.(1) 5,400 241,988
- -------------------------------------------------------------------------------------
Apex PC Solutions, Inc.(1) 3,900 112,613
- -------------------------------------------------------------------------------------
Apple Computer, Inc.(1) 4,800 196,500
- -------------------------------------------------------------------------------------
Compaq Computer Corp. 10,000 419,375
- -------------------------------------------------------------------------------------
Electronics for Imaging, Inc.(1) 3,000 120,563
- -------------------------------------------------------------------------------------
International Business Machines Corp. 3,700 683,575
- -------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 2,400 241,200
- -------------------------------------------------------------------------------------
Network Appliance, Inc.(1) 8,200 369,000
- -------------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 4,800 145,200
- -------------------------------------------------------------------------------------
Storage Technology Corp. (New)(1) 2,300 81,794
- -------------------------------------------------------------------------------------
VideoServer, Inc.(1) 5,300 97,388
-----------
2,709,196
- -------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 6.9%
Abacus Direct Corp.(1) 2,900 131,950
- -------------------------------------------------------------------------------------
Applied Micro Circuits Corp.(1) 4,400 149,463
- -------------------------------------------------------------------------------------
Aware, Inc.(1) 5,700 154,969
- -------------------------------------------------------------------------------------
Best Software, Inc.(1) 4,800 114,000
- -------------------------------------------------------------------------------------
BindView Development Corp.(1) 5,400 148,500
- -------------------------------------------------------------------------------------
BroadVision, Inc.(1) 3,900 124,800
- -------------------------------------------------------------------------------------
Concord Communications, Inc.(1) 2,300 130,525
- -------------------------------------------------------------------------------------
Dendrite International, Inc.(1) 7,300 182,272
- -------------------------------------------------------------------------------------
Diamond Technology Partners, Inc.(1) 7,700 147,263
- -------------------------------------------------------------------------------------
Documentum, Inc.(1) 3,400 181,688
- -------------------------------------------------------------------------------------
DSET Corp.(1) 10,000 103,750
- -------------------------------------------------------------------------------------
First Data Corp. 2,800 88,725
- -------------------------------------------------------------------------------------
Great Plains Software, Inc.(1) 3,000 144,750
- -------------------------------------------------------------------------------------
IDX Systems Corp.(1) 2,900 127,600
- -------------------------------------------------------------------------------------
Legato Systems, Inc.(1) 3,900 257,156
- -------------------------------------------------------------------------------------
Macromedia, Inc.(1) 5,200 175,175
- -------------------------------------------------------------------------------------
Medical Manager Corp.(1) 3,300 103,538
- -------------------------------------------------------------------------------------
MedQuist, Inc.(1) 2,100 82,950
- -------------------------------------------------------------------------------------
Mercury Interactive Corp.(1) 3,800 240,350
</TABLE>
68
<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/SERVICES (CONTINUED)
Micromuse, Inc.(1) 6,300 $ 122,850
- -------------------------------------------------------------------------------------
MicroStrategy, Inc.(1) 4,500 141,750
- -------------------------------------------------------------------------------------
Network Associates, Inc.(1) 5,000 331,250
- -------------------------------------------------------------------------------------
New Era of Networks, Inc.(1) 5,000 220,000
- -------------------------------------------------------------------------------------
QuadraMed Corp.(1) 6,100 125,050
- -------------------------------------------------------------------------------------
Rational Software Corp.(1) 4,300 113,950
- -------------------------------------------------------------------------------------
SAP AG, Preference 200 96,006
- -------------------------------------------------------------------------------------
Sapient Corp.(1) 3,200 179,200
- -------------------------------------------------------------------------------------
Software AG Systems, Inc.(1) 4,800 87,000
- -------------------------------------------------------------------------------------
SPR, Inc.(1) 3,100 53,475
- -------------------------------------------------------------------------------------
SS&C Technologies, Inc.(1) 5,900 73,013
- -------------------------------------------------------------------------------------
Tier Technologies, Inc., Cl. B(1) 5,700 98,325
- -------------------------------------------------------------------------------------
TSI International Software Ltd.(1) 3,200 153,200
- -------------------------------------------------------------------------------------
Veritas Software Corp.(1) 3,312 198,513
- -------------------------------------------------------------------------------------
Visio Corp.(1) 2,800 102,375
- -------------------------------------------------------------------------------------
Wind River Systems, Inc.(1) 3,150 148,050
-----------
5,033,431
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.4%
Excel Switching Corp.(1) 4,900 186,200
- -------------------------------------------------------------------------------------
Tekelec(1) 6,700 110,969
-----------
297,169
- -------------------------------------------------------------------------------------
ELECTRONICS - 2.7%
Bowthorpe plc 19,000 109,312
- -------------------------------------------------------------------------------------
Electrocomponents plc 23,000 153,680
- -------------------------------------------------------------------------------------
Getronics NV 4,000 198,224
- -------------------------------------------------------------------------------------
Hoshiden Corp. 10,000 174,128
- -------------------------------------------------------------------------------------
RF Micro Devices, Inc.(1) 3,900 180,863
- -------------------------------------------------------------------------------------
Sony Corp. 1,600 116,274
- -------------------------------------------------------------------------------------
TDK Corp. 2,000 182,428
- -------------------------------------------------------------------------------------
Uniphase Corp.(1) 3,300 228,938
- -------------------------------------------------------------------------------------
Vitesse Semiconductor Corp.(1) 5,700 260,063
- -------------------------------------------------------------------------------------
VTech Holdings Ltd. 61,000 266,141
- -------------------------------------------------------------------------------------
Waters Corp.(1) 1,200 104,700
-----------
1,974,751
- -------------------------------------------------------------------------------------
PHOTOGRAPHY - 1.2%
Eastman Kodak Co. 6,500 468,000
- -------------------------------------------------------------------------------------
Xerox Corp. 3,300 389,400
-----------
857,400
</TABLE>
69
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS - 6.7%
- -------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 3.3%
Bell Atlantic Corp. 12,060 $ 685,159
- -------------------------------------------------------------------------------------
Cable & Wireless Communications plc(1) 18,000 163,993
- -------------------------------------------------------------------------------------
Century Telephone Enterprises, Inc. 1,500 101,250
- -------------------------------------------------------------------------------------
Tele Danmark AS, B Shares 2,000 269,941
- -------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 27,500 203,470
- -------------------------------------------------------------------------------------
Telefonica de Espana 4,909 218,615
- -------------------------------------------------------------------------------------
U S West, Inc. 12,000 775,500
-----------
2,417,928
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY - 3.4%
ALLTELL Corp. 8,400 502,425
- -------------------------------------------------------------------------------------
AT&T Corp. 11,400 857,850
- -------------------------------------------------------------------------------------
Ericsson LM, B Shares 7,000 166,676
- -------------------------------------------------------------------------------------
Matsushita Communication Industrial Co. 2,000 94,128
- -------------------------------------------------------------------------------------
Nippon Telegraph & Telephone Corp. 17 130,896
- -------------------------------------------------------------------------------------
Nokia Oyj, A Shares 1,200 146,940
- -------------------------------------------------------------------------------------
NTT Mobile Communications Network, Inc. 3 123,179
- -------------------------------------------------------------------------------------
Telecom Italia SpA 23,000 196,677
- -------------------------------------------------------------------------------------
Vodafone Group plc 16,000 258,383
-----------
2,477,154
- -------------------------------------------------------------------------------------
TRANSPORTATION - 1.3%
- -------------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.6%
AHL Services, Inc.(1) 4,500 140,625
- -------------------------------------------------------------------------------------
AMR Corp.(1) 1,300 77,188
- -------------------------------------------------------------------------------------
BAA plc 16,000 185,166
- -------------------------------------------------------------------------------------
Delta Air Lines, Inc. 1,000 52,000
-----------
454,979
- -------------------------------------------------------------------------------------
RAILROADS & TRUCKERS - 0.7%
GATX Corp. 10,400 393,900
- -------------------------------------------------------------------------------------
MotivePower Industries, Inc.(1) 3,300 106,219
-----------
500,119
- -------------------------------------------------------------------------------------
UTILITIES - 5.3%
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.5%
CalEnergy, Inc.(1) 2,100 72,844
- -------------------------------------------------------------------------------------
Duke Energy Corp. 5,948 381,044
- -------------------------------------------------------------------------------------
Endesa SA 6,000 159,219
- -------------------------------------------------------------------------------------
FPL Group, Inc. 7,000 431,375
- -------------------------------------------------------------------------------------
Houston Industries, Inc. 8,900 285,913
- -------------------------------------------------------------------------------------
Kansas City Power & Light Co. 6,600 195,525
- -------------------------------------------------------------------------------------
Montana Power Co. 8,600 486,438
</TABLE>
70
<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)
United Utilities plc 13,000 $ 180,084
- -------------------------------------------------------------------------------------
Vivendi (Ex-Generale des Eaux) 650 168,725
- -------------------------------------------------------------------------------------
Western Resources, Inc. 5,200 172,900
-----------
2,534,067
- -------------------------------------------------------------------------------------
GAS UTILITIES - 1.8%
Columbia Energy Group 3,700 213,675
- -------------------------------------------------------------------------------------
El Paso Energy Corp. 12,400 431,675
- -------------------------------------------------------------------------------------
MCN Energy Group, Inc. 5,000 95,313
- -------------------------------------------------------------------------------------
National Fuel Gas Co. 5,600 253,050
- -------------------------------------------------------------------------------------
Questar Corp. 10,800 209,250
- -------------------------------------------------------------------------------------
RWE AG, Preference 2,500 90,812
-----------
1,293,775
-----------
Total Common Stocks (Cost $41,116,877) 52,461,533
- -------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.2%
- -------------------------------------------------------------------------------------
Case Corp., $4.50 Cum. Cv., Series A, Non-Vtg. 1,100 63,250
- -------------------------------------------------------------------------------------
PRIMEDIA, Inc., 10% Preferred Stock, Series D(3) 500 52,250
- -------------------------------------------------------------------------------------
TCR Holding Corp.:
Series B(1) 88 5
Series C(1) 48 3
Series D(1) 127 7
Series E(1) 263 16
-----------
Total Preferred Stocks (Cost $155,356) 115,531
UNITS
- -------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- -------------------------------------------------------------------------------------
Australis Holdings PTY Ltd./Australia Media Ltd. Wts., Exp.
10/01(3) 100 1
- -------------------------------------------------------------------------------------
e.spire Communications, Inc. Wts., Exp. 11/05 100 2,414
- -------------------------------------------------------------------------------------
Microcell Telecommunications, Inc. Wts., Exp. 6/06(3) 200 3,625
- -------------------------------------------------------------------------------------
Price Communications Corp. Wts., Exp. 8/07(3) 344 16,426
- -------------------------------------------------------------------------------------
Telefonica de Espana Rts., Exp. 1/99 4,909 4,365
-----------
Total Rights, Warrants and Certificates (Cost $2,825) 26,831
PRINCIPAL
AMOUNT
- -------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 0.2%
- -------------------------------------------------------------------------------------
Arcadia Automobile Receivables Trust, Automobile
Receivables-Backed Nts.,
Series 1998-B, Cl. A3, 5.95%, 11/15/02 $ 75,000 75,352
- -------------------------------------------------------------------------------------
IROQUOIS Trust, Asset-Backed Amortizing Nts., Series 1997-2,
Cl. A, 6.752%, 6/25/07(3) 50,000 50,234
- -------------------------------------------------------------------------------------
Olympic Automobile Receivables Trust, Automobile
Receivables-Backed Nts.,
Series 1997-A, Cl. A-5, 6.80%, 2/15/05 50,000 50,750
-----------
Total Asset-Backed Securities (Cost $174,900) 176,336
</TABLE>
71
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
<S> <C> <C>
- -------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 0.9%
- -------------------------------------------------------------------------------------
Countrywide Funding Corp., Mtg. Pass-Through Certificates,
Series 1994-10, Cl. A3, 6%, 5/25/09 $ 100,000 $ 99,343
- -------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Collateralized Mtg.
Obligations, Gtd. Multiclass Mtg. Participation
Certificates, Series 1711, Cl. EA, 7%, 3/15/24 100,000 102,281
- -------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg.
Participation Certificates:
6%, 3/1/09 13,427 13,514
Series 1843, Cl. VB, 7%, 4/15/03 15,000 15,319
Series 1849, Cl. VA, 6%, 12/15/10 19,551 19,723
- -------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 1542, Cl. QC, 7.504%, 10/15/20(4) 300,000 39,375
Series 1583, Cl. IC, 7.03%, 1/15/20(4) 216,903 21,284
- -------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 32,159 32,261
6.50%, 4/1/26 40,535 40,826
7%, 4/1/00 29,658 29,630
- -------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg.
Obligations, Gtd. Real Estate Mtg. Investment Conduit
Pass-Through Certificates, Trust 1993-190, Cl. Z, 5.85%,
7/25/08 30,627 30,570
- -------------------------------------------------------------------------------------
GE Capital Mortgage Services, Inc., Gtd. Real Estate Mtg.
Investment Conduit
Pass-Through Certificates, Series 1994-7, Cl. A18, 6%,
2/25/09 99,442 94,999
- -------------------------------------------------------------------------------------
IMC Home Equity Trust, Asset-Backed Home Equity Securities,
Series 1998-3, Cl. A5, 6.36%, 8/20/22(5) 125,000 125,078
-----------
Total Mortgage-Backed Obligations (Cost $663,696) 664,203
- -------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 4.0%
- -------------------------------------------------------------------------------------
Federal Farm Credit Bank, Medium-Term Nts., 5.24%, 10/1/08 100,000 99,536
- -------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 400,000 436,625
7.50%, 11/15/16 660,000 820,875
STRIPS, 5.618%, 11/15/18(6) 350,000 116,632
- -------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.625%, 2/15/06 225,000 237,375
5.75%, 8/15/03 150,000 156,609
6.125%, 8/15/07 200,000 218,625
6.50%, 8/15/05 725,000 796,821
-----------
Total U.S. Government Obligations (Cost $2,682,185) 2,883,098
- -------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 12.3%
- -------------------------------------------------------------------------------------
BASIC MATERIALS - 0.7%
- -------------------------------------------------------------------------------------
CHEMICALS - 0.4%
Laroche Industries, Inc., 9.50% Sr. Sub. Nts., Series B,
9/15/07 75,000 60,375
- -------------------------------------------------------------------------------------
Morton International, Inc., 9.25% Credit Sensitive Nts.,
6/1/20 35,000 47,641
- -------------------------------------------------------------------------------------
PPG Industries, Inc., 9% Debs., 5/1/21 35,000 44,771
- -------------------------------------------------------------------------------------
Rexene Corp. (New), 11.75% Sr. Nts., 12/1/04(3) 50,000 53,750
- -------------------------------------------------------------------------------------
Sterling Chemicals Holdings, Inc., 0%/13.50% Sr. Disc. Nts.,
8/15/08(7) 75,000 31,500
- -------------------------------------------------------------------------------------
Texas Petrochemicals Corp., 11.125% Sr. Sub. Nts., Series B,
7/1/06 75,000 74,250
-----------
312,287
</TABLE>
72
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
<S> <C> <C>
- -------------------------------------------------------------------------------------
METALS - 0.2%
Alcan Aluminum Ltd., 9.625% Debs., 7/15/19 $ 35,000 $ 37,409
- -------------------------------------------------------------------------------------
Gulf States Steel, Inc. (Alabama), 13.50% First Mtg. Nts.,
Series B, 4/15/03 75,000 24,000
- -------------------------------------------------------------------------------------
WCI Steel, Inc., 10% Sr. Nts., Series B, 12/1/04 75,000 74,812
-----------
136,221
- -------------------------------------------------------------------------------------
PAPER - 0.1%
Malette, Inc., 12.25% Sr. Sec. Nts., 7/15/04(3) 50,000 54,250
- -------------------------------------------------------------------------------------
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 50,000 50,875
-----------
105,125
- -------------------------------------------------------------------------------------
CAPITAL GOODS - 1.6%
- -------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 1.2%
Advance Holding Corp., 0%/12.875% Sr. Disc. Nts., 4/15/09(7) 50,000 29,250
- -------------------------------------------------------------------------------------
Advance Stores Co., Inc., 10.25% Sr. Unsec. Sub. Nts.,
Series B, 4/15/08 25,000 25,375
- -------------------------------------------------------------------------------------
Applied Extrusion Technologies, Inc., 11.50% Sr. Nts.,
Series B, 4/1/02(3) 125,000 130,937
- -------------------------------------------------------------------------------------
Employee Solutions, Inc., 10% Sr. Unsec. Nts., Series B,
10/15/04(3) 75,000 56,625
- -------------------------------------------------------------------------------------
Jordan Telecommunication Products, Inc., 9.875% Sr. Nts.,
Series B, 8/1/07 50,000 49,750
- -------------------------------------------------------------------------------------
KSL Recreation Group, Inc., 10.25% Sr. Sub. Nts., 5/1/07(3) 50,000 50,000
- -------------------------------------------------------------------------------------
Maxim Group, Inc. (The), 9.25% Sr. Sub. Nts., Series B,
10/15/07(3) 50,000 49,750
- -------------------------------------------------------------------------------------
Mrs. Fields Holding Co., Units (each unit consists of $1,000
principal amount of 0%/14% sr. sec. disc. nts., 12/1/05 and
warrants to purchase shares of common stock)(3)(7)(8) 100,000 57,500
- -------------------------------------------------------------------------------------
Ocean Energy, Inc., 8.375% Sr. Unsec. Sub. Nts., Series B,
7/1/08 50,000 46,750
- -------------------------------------------------------------------------------------
Production Resource Group, LLC/PRG Finance Corp., 11.50% Sr.
Unsec. Sub. Nts., 1/15/08(3) 75,000 73,875
- -------------------------------------------------------------------------------------
Scotia Pacific Co. LLC, 6.55% Nts., 1/20/07(2) 75,000 72,539
- -------------------------------------------------------------------------------------
Simonds Industries, Inc., 10.25% Sr. Sub. Nts., 7/1/08(3) 50,000 51,250
- -------------------------------------------------------------------------------------
Sun Co., Inc., 7.95% Debs., 12/15/01 50,000 52,768
- -------------------------------------------------------------------------------------
Thermadyne Holdings Corp., 0%/12.50% Sr. Disc. Debs.,
6/1/08(3)(7) 75,000 36,000
- -------------------------------------------------------------------------------------
Tyco International Group SA, 6.125% Unsec. Nts., 6/15/01 75,000 75,799
- -------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Sr. Nts., Series B,
12/1/06 40,000 39,636
-----------
897,804
- -------------------------------------------------------------------------------------
MANUFACTURING - 0.4%
Federal-Mogul Corp., 7.50% Nts., 7/1/04 75,000 75,975
- -------------------------------------------------------------------------------------
Jordan Industries, Inc., 10.375% Sr. Nts., Series B,
8/1/07(3) 75,000 76,875
- -------------------------------------------------------------------------------------
Portola Packaging, Inc., 10.75% Sr. Nts., 10/1/05(3) 50,000 51,250
- -------------------------------------------------------------------------------------
Titan Wheel International, Inc., 8.75% Sr. Sub. Nts., 4/1/07 50,000 49,250
- -------------------------------------------------------------------------------------
U.S. Filter Corp., 6.375% Bonds, 5/15/01 75,000 74,502
-----------
327,852
- -------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 3.7%
- -------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.4%
Ainsworth Lumber, Inc., 12.50% Sr. Nts., 7/15/07(9) 75,000 75,000
- -------------------------------------------------------------------------------------
American Standard Cos., Inc., 10.875% Sr. Nts., 5/15/99 43,000 43,215
</TABLE>
73
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
AUTOS & HOUSING (CONTINUED)
Black & Decker Corp., 6.625% Nts., 11/15/00 $ 15,000 $ 15,256
- -------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., Series B,
7/15/07 75,000 64,875
- -------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts.,
6/15/07 75,000 78,000
-----------
276,346
- -------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 1.3%
American Skiing Corp., 12% Sr. Sub. Nts., Series B,
7/15/06(3) 50,000 52,250
- -------------------------------------------------------------------------------------
Ameristar Casinos, Inc., 10.50% Sr. Sub. Nts., Series B,
8/1/04 50,000 45,750
- -------------------------------------------------------------------------------------
Bally Total Fitness Holding Corp., 9.875% Sr. Sub. Nts.,
Series B, 10/15/07 75,000 73,875
- -------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 50,000 55,625
- -------------------------------------------------------------------------------------
Casino Magic of Louisiana Corp., 13% First Mtg. Nts., Series
B, 8/15/03 50,000 56,750
- -------------------------------------------------------------------------------------
Colorado Gaming & Entertainment Co., 12% Sr. Sec. Nts.,
6/1/03(3) 75,000 80,625
- -------------------------------------------------------------------------------------
Hilton Hotels Corp., 7.375% Nts., 6/1/02 50,000 50,415
- -------------------------------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr. Nts., Series A, 8/1/05 75,000 73,500
- -------------------------------------------------------------------------------------
Hollywood Casino Corp., 12.75% Gtd. Sr. Sec. Nts., 11/1/03 75,000 79,875
- -------------------------------------------------------------------------------------
Horseshoe Gaming LLC, 9.375% Sr. Sub. Nts., 6/15/07 50,000 51,875
- -------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority (Connecticut), 13.50% Sr.
Sec. Nts., Series B, 11/15/02 50,000 60,250
- -------------------------------------------------------------------------------------
Players International, Inc., 10.875% Sr. Nts., 4/15/05 75,000 80,812
- -------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 50,000 54,750
- -------------------------------------------------------------------------------------
Santa Fe Hotel, Inc., 11% Gtd. First Mtg. Nts., 12/15/00 50,000 46,000
- -------------------------------------------------------------------------------------
Station Casinos, Inc., 9.75% Sr. Sub. Nts., 4/15/07 75,000 78,750
-----------
941,102
- -------------------------------------------------------------------------------------
MEDIA - 1.5%
Adelphia Communications Corp., 10.50% Sr. Unsec. Nts.,
Series B, 7/15/04 75,000 84,375
- -------------------------------------------------------------------------------------
Allbritton Communications Co., 8.875% Sr. Sub. Nts., Series
B, 2/1/08 75,000 76,125
- -------------------------------------------------------------------------------------
Australis Holdings PTY Ltd., 0%/15% Sr. Sec. Disc. Nts.,
11/1/02(3)(7) 100,000 5,250
- -------------------------------------------------------------------------------------
Big Flower Press Holdings, Inc., 8.625% Sr. Sub. Nts.,
12/1/08(2) 75,000 76,125
- -------------------------------------------------------------------------------------
Century Communications Corp., 9.75% Sr. Nts., 2/15/02 50,000 54,250
- -------------------------------------------------------------------------------------
Century Communications Corp., Zero Coupon Sr. Disc. Nts.,
Series B, 8.511%, 1/15/08(6) 50,000 25,250
- -------------------------------------------------------------------------------------
Comcast Corp., 9.125% Sr. Sub. Debs., 10/15/06 50,000 53,500
- -------------------------------------------------------------------------------------
CSC Holdings, Inc., 9.875% Sr. Sub. Nts., 5/15/06 50,000 54,750
- -------------------------------------------------------------------------------------
Diva Systems Corp., Units (each unit consists of $1,000
principal amount of 0%/12.625% sr. disc. nts., 3/1/08 and
three warrants to purchase three shares of common
stock)(2)(7)(8) 100,000 41,500
- -------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec.
Disc. Nts., 3/15/04(7) 50,000 50,125
- -------------------------------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285% Sr. Disc. Debs., Series
B, 4/15/10(7) 100,000 69,000
- -------------------------------------------------------------------------------------
Fox/Liberty Networks LLC, 8.875% Sr. Nts., 8/15/07 25,000 25,625
- -------------------------------------------------------------------------------------
Hollinger International Publishing, Inc., 9.25% Gtd. Sr.
Sub. Nts., 3/15/07 75,000 79,500
- -------------------------------------------------------------------------------------
Interepublic National Radio Sales Corp., 10% Sr. Unsec. Sub.
Nts., 7/1/08(3) 50,000 51,750
</TABLE>
74
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA (CONTINUED)
James Cable Partners LP, 10.75% Sr. Nts., Series B, 8/15/04 $ 50,000 $ 52,250
- -------------------------------------------------------------------------------------
Marcus Cable Operating Co. LP/Marcus Cable Capital Corp.,
0%/13.50% Gtd. Sr. Sub. Disc. Nts., Series II, 8/1/04(7) 75,000 75,937
- -------------------------------------------------------------------------------------
MDC Communications Corp., 10.50% Sr. Sub. Nts., 12/1/06 75,000 76,875
- -------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 50,000 53,250
- -------------------------------------------------------------------------------------
Spanish Broadcasting Systems, Inc., 11% Sr. Nts., 3/15/04 50,000 53,250
- -------------------------------------------------------------------------------------
TCI Satellite Entertainment, Inc., 10.875% Sr. Sub. Nts.,
2/15/07 50,000 16,750
- -------------------------------------------------------------------------------------
United International Holdings, Inc., 0%/10.75% Sr. Disc.
Nts., Series B, 2/15/08(7) 100,000 54,500
-----------
1,129,937
- -------------------------------------------------------------------------------------
RETAIL: GENERAL - 0.3%
Federated Department Stores, Inc., 6.125% Cv. Sub. Nts.,
9/1/01(5) 75,000 75,878
- -------------------------------------------------------------------------------------
Price/Costco Cos., Inc., 7.125% Sr. Nts., 6/15/05 40,000 43,060
- -------------------------------------------------------------------------------------
William Carter Co., 10.375% Sr. Sub. Nts., Series A, 12/1/06 75,000 79,500
-----------
198,438
- -------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 0.2%
K Mart Corp., 7.75% Debs., 10/1/12 50,000 51,517
- -------------------------------------------------------------------------------------
Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 75,000 78,937
-----------
130,454
- -------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.7%
- -------------------------------------------------------------------------------------
CONSUMER SERVICES - 0.1%
Lamar Advertising Co., 8.625% Sr. Sub. Nts., 9/15/07 75,000 79,125
- -------------------------------------------------------------------------------------
ENTERTAINMENT - 0.1%
Tricon Global Restaurants, Inc., 7.45% Sr. Unsec. Nts.,
5/15/05 75,000 77,400
- -------------------------------------------------------------------------------------
FOOD - 0.3%
AmeriServe Food Distribution, Inc., 8.875% Sr. Nts.,
10/15/06 75,000 69,750
- -------------------------------------------------------------------------------------
Dole Food Distributing, Inc., 6.75% Nts., 7/15/00 40,000 40,389
- -------------------------------------------------------------------------------------
Grand Metro Inventory Corp., 7.125% Nts., 9/15/04 100,000 107,473
-----------
217,612
- -------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS - 0.1%
Jitney-Jungle Stores of America, Inc., 10.375% Sr. Sub.
Nts., 9/15/07 50,000 51,500
- -------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.1%
Kimberly-Clark Corp., 7.875% Debs., 2/1/23 35,000 38,905
- -------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 8.625% Sr. Unsec. Sub. Nts.,
2/1/08 75,000 68,625
-----------
107,530
- -------------------------------------------------------------------------------------
ENERGY - 0.7%
- -------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.5%
Coastal Corp., 8.125% Sr. Nts., 9/15/02 15,000 16,078
- -------------------------------------------------------------------------------------
Forcenergy, Inc., 8.50% Sr. Sub. Nts., Series B, 2/15/07 75,000 55,875
- -------------------------------------------------------------------------------------
Gulf Canada Resources Ltd., 8.25% Sr. Nts., 3/15/17 50,000 45,219
- -------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 35,000 37,847
- -------------------------------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50% Nts., 3/31/07 50,000 53,273
</TABLE>
75
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SERVICES & PRODUCERS (CONTINUED)
RAM Energy, Inc., 11.50% Sr. Unsec. Nts., 2/15/08 $ 75,000 $ 52,875
- -------------------------------------------------------------------------------------
Southwest Royalties, Inc., 10.50% Sr. Nts., Series B,
10/15/04 75,000 30,375
- -------------------------------------------------------------------------------------
Transamerican Energy Corp., 11.50% Sr. Nts., Series B,
6/15/02(3) 50,000 16,250
- -------------------------------------------------------------------------------------
Williams Holdings of Delaware, Inc., 6.25% Sr. Unsec. Debs.,
2/1/06 25,000 25,725
-----------
333,517
- -------------------------------------------------------------------------------------
OIL - DOMESTIC - 0.1%
Norcen Energy Resources Ltd., 6.80% Debs., 7/2/02 50,000 50,569
- -------------------------------------------------------------------------------------
Standard Oil, 9% Gtd. Debs., 6/1/19 15,000 15,163
-----------
65,732
- -------------------------------------------------------------------------------------
OIL - INTERNATIONAL - 0.1%
Abraxas Petroleum Corp./CDN Abraxas Petroleum Ltd., 11.50%
Sr. Unsec. Nts.,
Series D, 11/1/04 50,000 38,000
- -------------------------------------------------------------------------------------
FINANCIAL - 1.2%
- -------------------------------------------------------------------------------------
BANKS - 0.1%
Capital One Bank, Inc., 6.375% Sr. Nts., 2/15/03 50,000 48,131
- -------------------------------------------------------------------------------------
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 15,000 16,450
- -------------------------------------------------------------------------------------
Integra Financial Corp., 6.50% Sub. Nts., 4/15/00 15,000 15,199
-----------
79,780
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 0.6%
American General Institutional Capital B, 8.125% Bonds,
Series B, 3/15/46(2) 50,000 57,715
- -------------------------------------------------------------------------------------
Capital One Financial Corp., 7.25% Nts., 12/1/03 40,000 39,370
- -------------------------------------------------------------------------------------
Countrywide Home Loans, Inc., 6.05% Medium-Term Nts., Series
D, 3/1/01 90,000 90,374
- -------------------------------------------------------------------------------------
General Electric Capital Corp., 5.77% Nts., Series A,
8/27/01 75,000 75,836
- -------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.625% Nts., 2/15/01 25,000 25,089
- -------------------------------------------------------------------------------------
GS Escrow Corp., 6.75% Sr. Nts., 8/1/01(2) 75,000 73,965
- -------------------------------------------------------------------------------------
Olympic Financial Ltd., Units (each unit consists of $1,000
principal amount of 11.50% sr. nts., 3/15/07 and one warrant
to purchase 6.84 shares of common stock)(3)(8) 75,000 56,625
-----------
418,974
- -------------------------------------------------------------------------------------
INSURANCE - 0.2%
Conseco Financing Trust III, 8.796% Bonds, 4/1/27 50,000 47,965
- -------------------------------------------------------------------------------------
Conseco, Inc., 6.40% Nts., 6/15/01 75,000 71,929
- -------------------------------------------------------------------------------------
Travelers Property Casualty Corp., 6.75% Nts., 4/15/01 15,000 15,361
-----------
135,255
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 0.3%
Chelsea GCA Realty Partner, Inc., 7.75% Unsec. Nts., 1/26/01 80,000 79,488
- -------------------------------------------------------------------------------------
First Industrial LP, 7.15% Bonds, 5/15/27 50,000 50,422
- -------------------------------------------------------------------------------------
Simon DeBartolo Group, Inc., 6.625% Nts., 6/15/03 75,000 74,227
-----------
204,137
</TABLE>
76
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE - 0.6%
- -------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 0.1%
Integrated Health Services, Inc., 9.25% Sr. Sub. Nts.,
Series A, 1/15/08 $ 50,000 $ 47,000
- -------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 0.5%
Columbia/HCA Healthcare Corp., 6.875% Nts., 7/15/01 30,000 29,785
- -------------------------------------------------------------------------------------
Dade International, Inc., 11.125% Sr. Sub. Nts., 5/1/06 25,000 27,875
- -------------------------------------------------------------------------------------
ICN Pharmaceutical, Inc., 8.75% Sr. Nts., 11/15/08(2) 75,000 76,125
- -------------------------------------------------------------------------------------
Kinetic Concepts, Inc., 9.625% Sr. Unsec. Sub. Nts., Series
B, 11/1/07 75,000 72,188
- -------------------------------------------------------------------------------------
Paracelsus Healthcare Corp., 10% Sr. Unsec. Sub. Nts.,
8/15/06(3) 50,000 45,250
- -------------------------------------------------------------------------------------
Playtex Products, Inc., 8.875% Sr. Nts., 7/15/04 50,000 52,625
- -------------------------------------------------------------------------------------
Tenet Healthcare Corp., 8% Sr. Nts., 1/15/05 50,000 51,808
-----------
355,656
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 2.4%
- -------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.1%
Teligent, Inc., 11.50% Sr. Nts., 12/1/07 75,000 70,500
- -------------------------------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY - 2.3%
AT&T Capital Corp., 6.25% Medium-Term Nts., Series F,
5/15/01 75,000 74,046
- -------------------------------------------------------------------------------------
Coaxial Communications, Inc., 10% Sr. Unsec. Nts.,
8/15/06(3) 75,000 77,813
- -------------------------------------------------------------------------------------
Comcast Cellular Communications, Inc., 9.50% Sr. Nts.,
5/1/07 75,000 79,875
- -------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs.,
11/15/07(7) 50,000 42,500
- -------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/10.75% Sr. Disc. Nts.,
2/15/07(7) 75,000 53,250
- -------------------------------------------------------------------------------------
e.spire Communications, Inc., 0%/13% Sr. Disc. Nts.,
11/1/05(7) 100,000 75,500
- -------------------------------------------------------------------------------------
Exodus Communications, Inc., 11.25% Sr. Nts., 7/1/08 75,000 75,375
- -------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(7) 75,000 54,188
- -------------------------------------------------------------------------------------
Hermes Europe Railtel BV, 10.375% Sr. Nts., 1/15/09(2)(10) 75,000 76,125
- -------------------------------------------------------------------------------------
ICG Holdings, Inc., 0%/11.625% Sr. Disc. Nts., 3/15/07(7) 100,000 65,000
- -------------------------------------------------------------------------------------
International CableTel, Inc., 0%/11.50% Sr. Deferred Coupon
Nts., Series B, 2/1/06(7) 150,000 123,750
- -------------------------------------------------------------------------------------
Iridium LLC/Iridium Capital Corp., 11.25% Sr. Nts., Series
C/EN, 7/15/05 75,000 64,875
- -------------------------------------------------------------------------------------
Level 3 Communications, Inc., 9.125% Sr. Unsec. Nts., 5/1/08 75,000 74,438
- -------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., 0%/14% Sr. Disc. Nts.,
Series B, 6/1/06(7) 50,000 37,375
- -------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts.,
8/15/04(7) 50,000 48,750
- -------------------------------------------------------------------------------------
Optel, Inc., 11.50% Sr. Unsec. Nts., 7/1/08 50,000 49,000
- -------------------------------------------------------------------------------------
Price Communications Cellular Holdings, Inc., 11.25% Sr.
Nts., 8/15/08(9) 50,000 47,500
- -------------------------------------------------------------------------------------
PSINet, Inc., 11.50% Sr. Nts., 11/1/08(2) 50,000 52,625
- -------------------------------------------------------------------------------------
Qwest Communications International, Inc., 0%/9.47% Sr. Disc.
Nts., 10/15/07(7) 75,000 58,313
- -------------------------------------------------------------------------------------
RSL Communications plc, 9.125% Sr. Unsec. Nts., 3/1/08 50,000 46,250
- -------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 11% Sr.
Nts., 8/15/06 75,000 87,000
- -------------------------------------------------------------------------------------
Talton Holdings, Inc., 11% Gtd. Sr. Unsec. Bonds, Series B,
6/30/07 75,000 71,625
- -------------------------------------------------------------------------------------
TeleWest Communications plc:
0%/11% Sr. Disc. Debs., 10/1/07(7) 25,000 21,000
9.625% Sr. Debs., 10/1/06 25,000 25,875
</TABLE>
77
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE
AMOUNT NOTE 1
- -------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS/TECHNOLOGY (CONTINUED)
US West Capital Funding, Inc., 6.125% Nts., 7/15/02 $ 75,000 $ 76,759
- -------------------------------------------------------------------------------------
Western Wireless Corp., 10.50% Sr. Sub. Nts., 2/1/07 50,000 53,250
- -------------------------------------------------------------------------------------
Winstar Communications, Inc., 0%/14% Sr. Disc. Nts.,
10/15/05(7) 50,000 35,750
-----------
1,647,807
- -------------------------------------------------------------------------------------
TRANSPORTATION - 0.3%
- -------------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.1%
Canadian Airlines Corp., 12.25% Sr. Nts., 8/1/06 75,000 51,375
- -------------------------------------------------------------------------------------
Trans World Airlines, Inc., 11.375% Unsec. Nts., 3/1/06 75,000 47,625
-----------
99,000
- -------------------------------------------------------------------------------------
RAILROADS & TRUCKERS - 0.2%
CSX Corp., 7.05% Debs., 5/1/02 75,000 78,365
- -------------------------------------------------------------------------------------
Norfolk Southern Corp., 7.35% Nts., 5/15/07 50,000 55,179
- -------------------------------------------------------------------------------------
Union Pacific Corp., 7% Nts., 6/15/00 15,000 15,288
-----------
148,832
- -------------------------------------------------------------------------------------
SHIPPING - 0.0%
Golden Ocean Group Ltd., 10% Sr. Unsec. Nts., 8/31/01 50,000 15,000
- -------------------------------------------------------------------------------------
UTILITIES - 0.4%
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.2%
AES Corp., 8% Sr. Nts., 12/31/08 50,000 49,529
- -------------------------------------------------------------------------------------
Niagara Mohawk Power Corp., 7.125% Sr. Unsec. Nts., Series
C, 7/1/01 75,000 76,540
-----------
126,069
- -------------------------------------------------------------------------------------
GAS UTILITIES - 0.2%
Northern Illinois Gas Co., 6.45% First Mtg. Bonds, 8/1/01 50,000 50,782
- -------------------------------------------------------------------------------------
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 50,000 53,372
- -------------------------------------------------------------------------------------
Williams Cos., Inc., 6.20% Nts., 8/1/02 75,000 75,247
-----------
179,401
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost
$9,341,234) 8,953,393
- -------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 10.4%
- -------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 4.85%, dated
12/31/98, to be repurchased at $7,599,093 on 1/4/99,
collateralized by U.S. Treasury Nts., 7.75%, 11/30/99, with
a value of $7,760,518 (Cost $7,595,000) 7,595,000 7,595,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $61,732,073) 100.0% 72,875,925
- -------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0) (26,772 )
---------- -----------
NET ASSETS 100.0% $72,849,153
---------- -----------
---------- -----------
</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 $767,934 or 1.05% of the Fund's net assets
as of December 31, 1998.
3. Identifies issues considered to be illiquid or restricted - See Note 6 of
Notes to Financial Statements.
78
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
4. 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.
5. Represents the current interest rate for a variable rate security.
6. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
8. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, principal amount disclosed represents total
underlying principal.
9. Interest or dividend is paid in kind.
10. When-issued security to be delivered and settled after December 31, 1998.
See accompanying Notes to Financial Statements.
79
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
TOTAL GOVERNMENT
RETURN GROWTH SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- -------------------------------------------------------------------------
ASSETS
Investments, at value
(cost *) (including
repurchase
agreements **) - see
accompanying statements $ 1,345,914,709 $ 925,715,939 $ 24,436,187
- -------------------------------------------------------------------------
Cash 184,635 132,602 201,864
- -------------------------------------------------------------------------
Receivables:
Dividends, interest and
principal paydowns 6,925,648 1,034,074 303,903
Shares of capital stock
sold 207,463 131,967 316
Investments sold 6,383,315 8,110,058 --
Daily variation on
futures contracts - see
applicable note 458,150 -- --
Other 18,041 11,551 1,728
--------------- ------------- ------------
Total assets 1,360,091,961 935,136,191 24,943,998
- -------------------------------------------------------------------------
LIABILITIES
Payables and other
liabilities:
Investments purchased 15,394,819 14,928,624 --
Shares of capital stock
redeemed 734,711 1,251,364 5,999
Custodian fees 9,745 15,214 319
Legal and auditing fees 24,427 19,888 7,336
Shareholder reports 8,804 9,310 4,631
Registration and filing
fees 33,218 38,666 --
Transfer and shareholder
servicing agent fees 2,035 483 616
Other 1,823 1,183 468
--------------- ------------- ------------
Total liabilities 16,209,582 16,264,732 21,119
- -------------------------------------------------------------------------
NET ASSETS $ 1,343,882,379 $ 918,871,459 $ 24,922,879
--------------- ------------- ------------
--------------- ------------- ------------
- -------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of
capital stock $ 704,410 $ 280,759 $ 22,014
- -------------------------------------------------------------------------
Additional paid-in
capital 1,116,469,294 690,886,056 22,932,372
- -------------------------------------------------------------------------
Undistributed net
investment income 42,986,942 10,166,774 1,337,809
- -------------------------------------------------------------------------
Accumulated net realized
gain (loss) from
investments
and foreign currency
transactions 36,977,889 33,277,597 (609,390)
- -------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation) on
investments and
translation of assets and
liabilities
denominated in foreign
currencies 146,743,844 184,260,273 1,240,074
--------------- ------------- ------------
Net assets $ 1,343,882,379 $ 918,871,459 $ 24,922,879
--------------- ------------- ------------
--------------- ------------- ------------
- -------------------------------------------------------------------------
SHARES OF CAPITAL STOCK
OUTSTANDING 704,410,395 280,759,431 22,014,005
- -------------------------------------------------------------------------
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $ 1.91 $ 3.27 $ 1.13
*Cost $ 1,209,354,422 $ 741,455,666 $ 23,170,302
**Repurchase agreements $ 57,700,000 $ 23,800,000 $ 1,100,000
</TABLE>
See accompanying Notes to Financial Statements.
80
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998 (CONTINUED)
<TABLE>
<CAPTION>
LIFESPAN LIFESPAN
INTERNATIONAL DIVERSIFIED LIFESPAN CAPITAL
EQUITY INCOME BALANCED APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
ASSETS
Investments, at value
(cost *) (including
repurchase
agreements **) - see
accompanying statements $ 103,104,406 $ 43,181,713 $ 85,648,910 $ 72,875,925
- ---------------------------------------------------------------------------------------
Cash 80,720 24,394 24,087 8,711
- ---------------------------------------------------------------------------------------
Receivables:
Dividends, interest and
principal paydowns 235,016 540,697 661,782 355,429
Shares of capital stock
sold 136,018 18,567 -- 6,017
Investments sold -- 122,959 386,207 431,294
Daily variation on
futures contracts - see
applicable note -- -- -- --
Other 3,447 2,479 3,347 2,847
-------------- ------------ ------------ -------------
Total assets 103,559,607 43,890,809 86,724,333 73,680,223
- ---------------------------------------------------------------------------------------
LIABILITIES
Payables and other
liabilities:
Investments purchased -- 185,290 771,738 802,587
Shares of capital stock
redeemed 122,977 -- 46,561 --
Custodian fees 11,579 7,600 7,039 2,364
Legal and auditing fees 9,507 7,052 9,010 8,981
Shareholder reports 7,818 7,166 9,760 12,396
Registration and filing
fees 2,337 2,742 4,918 3,209
Transfer and shareholder
servicing agent fees 1,058 1,238 1,029 1,077
Other 583 640 868 456
-------------- ------------ ------------ -------------
Total liabilities 155,859 211,728 850,923 831,070
- ---------------------------------------------------------------------------------------
NET ASSETS $ 103,403,748 $ 43,679,081 $ 85,873,410 $ 72,849,153
-------------- ------------ ------------ -------------
-------------- ------------ ------------ -------------
- ---------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of
capital stock $ 65,895 $ 37,415 $ 67,155 $ 53,763
- ---------------------------------------------------------------------------------------
Additional paid-in
capital 76,649,719 39,532,136 73,932,226 61,270,795
- ---------------------------------------------------------------------------------------
Undistributed net
investment income 576,688 2,150,194 2,595,467 1,570,493
- ---------------------------------------------------------------------------------------
Accumulated net realized
gain (loss) from
investments
and foreign currency
transactions 216,254 555,096 (955,181) (1,189,648)
- ---------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation) on
investments and
translation of assets and
liabilities
denominated in foreign
currencies 25,895,192 1,404,240 10,233,743 11,143,750
-------------- ------------ ------------ -------------
Net assets $ 103,403,748 $ 43,679,081 $ 85,873,410 $ 72,849,153
-------------- ------------ ------------ -------------
-------------- ------------ ------------ -------------
- ---------------------------------------------------------------------------------------
SHARES OF CAPITAL STOCK
OUTSTANDING 65,894,927 37,415,435 67,154,567 53,762,813
- ---------------------------------------------------------------------------------------
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $ 1.57 $ 1.17 $ 1.28 $ 1.36
*Cost $ 77,209,375 $ 41,777,473 $ 75,415,118 $ 61,732,073
**Repurchase agreements $ 2,800,000 $ 4,706,000 $ 8,831,000 $ 7,595,000
</TABLE>
See accompanying Notes to Financial Statements.
81
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
TOTAL GOVERNMENT
RETURN GROWTH SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
- ---------------------------------------------------------------------
INVESTMENT INCOME
Interest (net of
withholding taxes of *) $ 41,622,822 $ 4,937,302 $ 1,519,588
- ---------------------------------------------------------------------
Dividends (net of
withholding taxes of **) 8,395,507 9,934,645 --
------------- ------------ -----------
Total income 50,018,329 14,871,947 1,519,588
- ---------------------------------------------------------------------
EXPENSES
Custodian fees and
expenses 46,333 31,729 264
- ---------------------------------------------------------------------
Shareholder reports 11,957 12,315 6,434
- ---------------------------------------------------------------------
Accounting service fees -
see applicable note 15,000 15,000 15,000
- ---------------------------------------------------------------------
Legal and auditing fees 46,592 23,931 6,599
- ---------------------------------------------------------------------
Insurance expenses 14,271 6,923 1,390
- ---------------------------------------------------------------------
Directors' fees and
expenses 36,750 4,477 1,305
- ---------------------------------------------------------------------
Registration and filing
fees 32,541 38,345 --
- ---------------------------------------------------------------------
Management fees - see
applicable note 6,893,133 4,523,009 126,217
- ---------------------------------------------------------------------
Transfer and shareholder
servicing agent fees -
see applicable note 4,274 2,358 2,873
- ---------------------------------------------------------------------
Other 2,196 2,304 2,630
------------- ------------ -----------
Total expenses 7,103,047 4,660,391 162,712
- ---------------------------------------------------------------------
NET INVESTMENT INCOME 42,915,282 10,211,556 1,356,876
- ---------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss)
on:
Investments 17,806,759 33,310,716 (66,552)
Closing of futures
contracts 20,330,587 -- (73,575)
Foreign currency
transactions -- -- --
Net change in unrealized
appreciation or
depreciation on:
Investments 54,372,054 24,320,298 627,658
Translation of assets and
liabilities denominated
in
foreign currencies -- -- --
------------- ------------ -----------
Net realized and
unrealized gain (loss) 92,509,400 57,631,014 487,531
- ---------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $ 135,424,682 $ 67,842,570 $ 1,844,407
------------- ------------ -----------
------------- ------------ -----------
*Withholding taxes -
interest $ -- $ -- $ --
**Withholding taxes -
dividends $ -- $ -- $ --
</TABLE>
See accompanying Notes to Financial Statements.
82
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998 (CONTINUED)
<TABLE>
<CAPTION>
LIFESPAN LIFESPAN
INTERNATIONAL DIVERSIFIED LIFESPAN CAPITAL
EQUITY INCOME BALANCED APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (net of
withholding taxes of *) $ 247,798 $ 2,211,127 $ 2,696,623 $ 1,492,845
- --------------------------------------------------------------------------------------
Dividends (net of
withholding taxes of **) 1,427,931 271,334 641,115 737,026
-------------- ------------ ----------- -------------
Total income 1,675,729 2,482,461 3,337,738 2,229,871
- --------------------------------------------------------------------------------------
EXPENSES
Custodian fees and
expenses 31,773 264 7,274 6,447
- --------------------------------------------------------------------------------------
Shareholder reports 9,979 3,245 12,530 13,901
- --------------------------------------------------------------------------------------
Accounting service fees -
see applicable note 15,000 15,000 15,000 15,000
- --------------------------------------------------------------------------------------
Legal and auditing fees 11,802 4,631 10,815 6,717
- --------------------------------------------------------------------------------------
Insurance expenses 3,262 2,586 3,044 2,741
- --------------------------------------------------------------------------------------
Directors' fees and
expenses 3,018 2,624 3,035 3,121
- --------------------------------------------------------------------------------------
Registration and filing
fees 2,339 2,696 4,814 3,167
- --------------------------------------------------------------------------------------
Management fees - see
applicable note 945,935 287,965 648,865 567,142
- --------------------------------------------------------------------------------------
Transfer and shareholder
servicing agent fees -
see applicable note 2,959 3,157 2,859 2,865
- --------------------------------------------------------------------------------------
Other 3,528 257 1,936 2,416
-------------- ------------ ----------- -------------
Total expenses 1,029,595 322,425 710,172 623,517
- --------------------------------------------------------------------------------------
NET INVESTMENT INCOME 646,134 2,160,036 2,627,566 1,606,354
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss)
on:
Investments 1,628,113 570,917 (785,225) (1,012,512)
Closing of futures
contracts -- -- -- --
Foreign currency
transactions (1,399,644) -- (163,659) (165,269)
Net change in unrealized
appreciation or
depreciation on:
Investments 9,699,026 (928,198) 2,130,211 2,684,474
Translation of assets and
liabilities denominated
in
foreign currencies 5,242,221 -- 632,075 687,122
-------------- ------------ ----------- -------------
Net realized and
unrealized gain (loss) 15,169,716 (357,281) 1,813,402 2,193,815
- --------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $ 15,815,850 $ 1,802,755 $ 4,440,968 $ 3,800,169
-------------- ------------ ----------- -------------
-------------- ------------ ----------- -------------
*Withholding taxes -
interest $ -- $ 289 $ 722 $ 433
**Withholding taxes -
dividends $ 146,782 $ -- $ 18,142 $ 21,582
</TABLE>
See accompanying Notes to Financial Statements.
83
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
TOTAL
RETURN GROWTH
PORTFOLIO PORTFOLIO
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 42,915,282 $ 43,104,000 $ 10,211,556 $ 9,988,627
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) 38,137,346 144,786,846 33,310,716 108,263,083
- ---------------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation 54,372,054 14,497,050 24,320,298 45,697,012
--------------- --------------- -------------- -------------
Net increase in net
assets resulting from
operations 135,424,682 202,387,896 67,842,570 163,948,722
- ---------------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income (42,620,811) (38,831,970) (9,799,624) (6,502,490)
- ---------------------------------------------------------------------------------------------
Distributions from net
realized gain (144,299,156) (95,341,180) (107,624,371) (46,127,035)
- ---------------------------------------------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease)
in net assets resulting
from
capital stock
transactions - Note 2 116,654,347 88,432,903 137,081,544 133,829,865
- ---------------------------------------------------------------------------------------------
NET ASSETS
Total increase 65,159,062 156,647,649 87,500,119 245,149,062
- ---------------------------------------------------------------------------------------------
Beginning of period 1,278,723,317 1,122,075,668 831,371,340 586,222,278
--------------- --------------- -------------- -------------
End of period $ 1,343,882,379 $ 1,278,723,317 $ 918,871,459 $ 831,371,340
--------------- --------------- -------------- -------------
--------------- --------------- -------------- -------------
Undistributed net
investment income $ 42,986,942 $ 42,609,690 $ 10,166,774 $ 9,770,088
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL
SECURITIES EQUITY
PORTFOLIO PORTFOLIO
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,356,876 $ 1,373,656 $ 646,134 $ 527,431
- -------------------------------------------------------------------------------------
Net realized gain (loss) (140,127) (69,942) 228,469 2,662,634
- -------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation 627,658 644,731 14,941,247 2,591,115
------------ ------------ ------------- ------------
Net increase in net
assets resulting from
operations 1,844,407 1,948,445 15,815,850 5,781,180
- -------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income (1,367,579) (1,463,333) (404,500) (407,257)
- -------------------------------------------------------------------------------------
Distributions from net
realized gain -- -- (2,680,566) (1,170,863)
- -------------------------------------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease)
in net assets resulting
from
capital stock
transactions - Note 2 727,031 (1,670) 8,415,516 15,468,927
- -------------------------------------------------------------------------------------
NET ASSETS
Total increase 1,203,859 483,442 21,146,300 19,671,987
- -------------------------------------------------------------------------------------
Beginning of period 23,719,020 23,235,578 82,257,448 62,585,461
------------ ------------ ------------- ------------
End of period $ 24,922,879 $ 23,719,020 $ 103,403,748 $ 82,257,448
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
Undistributed net
investment income $ 1,337,809 $ 1,356,173 $ 576,688 $ 390,416
</TABLE>
See accompanying Notes to Financial Statements.
84
<PAGE>
PANORAMA SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 (CONTINUED)
<TABLE>
<CAPTION>
LIFESPAN
DIVERSIFIED LIFESPAN
INCOME BALANCED
PORTFOLIO PORTFOLIO
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,160,036 $ 1,675,773 $ 2,627,566 $ 2,045,313
- ------------------------------------------------------------------------------------
Net realized gain (loss) 570,917 298,037 (948,884) 2,515,126
- ------------------------------------------------------------------------------------
Net change in unrealized
appreciation or
depreciation (928,198) 1,310,516 2,762,286 2,434,472
------------ ------------ ------------ ------------
Net increase in net
assets resulting from
operations 1,802,755 3,284,326 4,440,968 6,994,911
- ------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income (1,661,998) (1,155,828) (1,965,841) (1,134,469)
- ------------------------------------------------------------------------------------
Distributions from net
realized gain (294,680) (41,610) (2,467,048) (612,613)
- ------------------------------------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease)
in net assets resulting
from
capital stock
transactions - Note 2 9,717,189 6,754,828 17,172,548 12,108,631
- ------------------------------------------------------------------------------------
NET ASSETS
Total increase 9,563,266 8,841,716 17,180,627 17,356,460
- ------------------------------------------------------------------------------------
Beginning of period 34,115,815 25,274,099 68,692,783 51,336,323
------------ ------------ ------------ ------------
End of period $ 43,679,081 $ 34,115,815 $ 85,873,410 $ 68,692,783
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Undistributed net
investment income $ 2,150,194 $ 1,650,130 $ 2,595,467 $ 1,955,234
</TABLE>
<TABLE>
<CAPTION>
LIFESPAN
CAPITAL
APPRECIATION
PORTFOLIO
1998 1997
<S> <C> <C>
- ------------------------------------------------------
OPERATIONS
Net investment income $ 1,606,354 $ 1,214,368
- ------------------------------------------------------
Net realized gain (loss) (1,177,781) 2,533,295
- ------------------------------------------------------
Net change in unrealized
appreciation or
depreciation 3,371,596 2,665,698
------------ ------------
Net increase in net
assets resulting from
operations 3,800,169 6,413,361
- ------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net
investment income (1,183,734) (402,394)
- ------------------------------------------------------
Distributions from net
realized gain (2,498,475) (1,024,277)
- ------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease)
in net assets resulting
from
capital stock
transactions - Note 2 11,351,711 14,398,598
- ------------------------------------------------------
NET ASSETS
Total increase 11,469,671 19,385,288
- ------------------------------------------------------
Beginning of period 61,379,482 41,994,194
------------ ------------
End of period $ 72,849,153 $ 61,379,482
------------ ------------
------------ ------------
Undistributed net
investment income $ 1,570,493 $ 1,170,826
</TABLE>
See accompanying Notes to Financial Statements.
85
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996(1) 1995 1994
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $2.00 $1.91 $1.75 $1.51 $1.65
- ----------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .06 .07 .07 .07 .06
Net realized and unrealized
gain (loss) .14 .25 .11 .30 (.09)
- ----------------------------------------------------------------------------------------------
Total income (loss) from
investment operations .20 .32 .18 .37 (.03)
- ----------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.07) (.07) (.01) (.07) (.06)
Distributions from net
realized gain (.22) (.16) (.01) (.06) (.05)
- ----------------------------------------------------------------------------------------------
Total dividends and
distributions to shareholders (.29) (.23) (.02) (.13) (.11)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $1.91 $2.00 $1.91 $1.75 $1.51
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(2) 10.90% 18.81% 10.14% 24.66% (1.97)%
- ----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $1,344 $1,279 $1,122 $994 $742
- ----------------------------------------------------------------------------------------------
Average net assets (in
millions) $1,299 $1,208 $1,058 $864(3) $687(3)
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.30% 3.57% 4.12% 4.48% 4.21%
Expenses 0.55% 0.55% 0.55% 0.59% 0.56%
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 92.5% 103.5% 104.3% 62.3% 88.3%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor 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 the auditors' 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, 1998 were $1,069,202,081 and $1,113,803,553, respectively.
See accompanying Notes to Financial Statements.
86
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1998 1997 1996(1) 1995 1994
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $3.45 $2.98 $2.53 $1.97 $2.08
- -------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .04 .04 .04 .04 .03
Net realized and unrealized
gain (loss) .26 .69 .43 .71 (.04)
- -------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations .30 .73 .47 .75 (.01)
- -------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.04) (.03) (.01) (.04) (.03)
Distributions from net
realized gain (.44) (.23) (.01) (.15) (.07)
- -------------------------------------------------------------------------------------------------
Total dividends and
distributions to shareholders (.48) (.26) (.02) (.19) (.10)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $3.27 $3.45 $2.98 $2.53 $1.97
----- -------- -------- -------- --------
----- -------- -------- -------- --------
- -------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(2) 8.43% 26.37% 18.87% 38.06% (0.51)%
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 918,871 $831,371 $586,222 $405,935 $230,195
- -------------------------------------------------------------------------------------------------
Average net assets (in
thousands) $ 877,874 $721,555 $494,281 $303,193(3) $198,879(3)
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.16% 1.38% 1.63% 2.01% 1.87%
Expenses 0.53% 0.54% 0.58% 0.66% 0.67%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 97.8% 91.8% 82.5% 69.3% 97.3%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor 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 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 the auditors' 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, 1998 were $853,990,249 and $769,342,848, respectively.
See accompanying Notes to Financial Statements.
87
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996(1) 1995 1994
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $1.11 $1.09 $1.07 $0.95 $1.06
- ----------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .06 .07 .07 .06 .06
Net realized and unrealized
gain (loss) .03 .02 (.05) .12 (.11)
- ----------------------------------------------------------------------------------------------
Total income (loss) from
investment operations .09 .09 .02 .18 (.05)
- ----------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment
income (.07) (.07) --(2) (.06) (.06)
- ----------------------------------------------------------------------------------------------
Total dividends to
shareholders (.07) (.07) -- (.06) (.06)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $1.13 $1.11 $1.09 $1.07 $0.95
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(3) 8.14% 8.82% 1.93% 18.91% (4.89)%
- ----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 24,923 $ 23,719 $ 23,236 $ 24,309 $ 18,784
- ----------------------------------------------------------------------------------------------
Average net assets (in
thousands) $ 24,044 $ 23,034 $ 23,880 $ 23,157(4) $ 17,589(4)
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.64% 5.96% 6.11% 6.08% 6.04%
Expenses 0.68% 0.67% 0.62% 0.71% 0.85%
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 43.1% 0.0% 6.0% 54.7% 102.3%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor to the
Fund.
2. Less than $0.005 per share.
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 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 the auditors' opinion.
5. 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, 1998 were $9,974,241 and $8,600,233, respectively.
See accompanying Notes to Financial Statements.
88
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1998 1997 1996(1) 1995 1994
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $1.36 $1.29 $1.15 $1.09 $1.09
- -------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) .01 .01 .02 .03 (.01)
Net realized and unrealized
gain .25 .09 .13 .08 .03
- -------------------------------------------------------------------------------------------------
Total income from investment
operations .26 .10 .15 .11 .02
- -------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.01) (.01) (.01) (.04) --
Distributions from net
realized gain (.04) (.02) -- (.01) (.02)
- -------------------------------------------------------------------------------------------------
Total dividends and
distributions to shareholders (.05) (.03) (.01) (.05) (.02)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $1.57 $1.36 $1.29 $1.15 $1.09
----- --- --- --- ---
----- --- --- --- ---
- -------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(2) 19.40% 8.11% 13.26% 10.30% 1.44%
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 103,404 $ 82,257 $ 62,585 $ 45,775 $ 31,603
- -------------------------------------------------------------------------------------------------
Average net assets (in
thousands) $ 94,651 $ 73,318 $ 56,893 $ 37,474(3) $ 29,133(3)
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.68% 0.72% 0.76% 1.61% (1.85)%
Expenses 1.09% 1.12% 1.21% 1.26% 1.28%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 47.5% 48.6% 53.7% 85.1% 76.5%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor 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 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 the auditors' 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, 1998 were $48,204,329 and $42,767,249, respectively.
See accompanying Notes to Financial Statements.
89
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------
1998 1997 1996(2) 1995(1)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $1.18 $1.10 $1.04 $1.00
- ------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .06 .06 .06 .02
Net realized and unrealized gain -- .07 .01 .04
- ------------------------------------------------------------------------------------
Total income from investment
operations .06 .13 .07 .06
- ------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.06) (.05) (.01) (.02)
Distributions from net realized
gain (.01) --(3) -- --
- ------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.07) (.05) (.01) (.02)
- ------------------------------------------------------------------------------------
Net asset value, end of period $1.17 $1.18 $1.10 $1.04
-------- ------- -------- -----
-------- ------- -------- -----
- ------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 4.88% 12.51% 6.93% 5.69%
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 43,679 $34,116 $ 25,274 $ 21,176
- ------------------------------------------------------------------------------------
Average net assets (in thousands) $ 38,422 $28,503 $ 22,854 $ 20,364(5)
- ------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.62% 5.88% 5.84% 5.11%(6)
Expenses 0.84% 0.86%(7) 1.07% 1.50%(6)
- ------------------------------------------------------------------------------------
Portfolio turnover rate(8) 36.2% 34.0% 80.4% 41.2%(6)
</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 advisor 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 the auditors' opinion.
6. Annualized.
7. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
8. 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
December 31, 1998 were $22,010,484 and $11,980,312, respectively.
See accompanying Notes to Financial Statements.
90
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------
1998 1997 1996(2) 1995(1)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $1.28 $1.18 $1.05 $1.00
- ---------------------------------------------------------------------------
Income from investment operations:
Net investment income .04 .04 .03 .01
Net realized and unrealized gain .04 .10 .11 .05
- ---------------------------------------------------------------------------
Total income from investment
operations .08 .14 .14 .06
- ---------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.04) (.03) (.01) (.01)
Distributions from net realized
gain (.04) (.01) -- --
- ---------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.08) (.04) (.01) (.01)
- ---------------------------------------------------------------------------
Net asset value, end of period $1.28 $1.28 $1.18 $1.05
------- ------- ------- -------
------- ------- ------- -------
- ---------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 6.17% 12.20% 13.38% 6.08%
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $85,873 $68,693 $51,336 $35,467
- ---------------------------------------------------------------------------
Average net assets (in thousands) $76,384 $59,388 $41,847 $33,925(4)
- ---------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.44% 3.44% 3.34% 3.08%(5)
Expenses 0.93% 0.97% 1.17% 1.50%(5)
- ---------------------------------------------------------------------------
Portfolio turnover rate(6) 57.8% 57.3% 69.7% 39.7%(5)
</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 advisor 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 the auditors' 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, 1998 were $52,860,309 and $39,128,571, respectively.
See accompanying Notes to Financial Statements.
91
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
1998 1997 1996(2) 1995(1)
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $1.35 $1.24 $1.06 $1.00
- ------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .03 .03 .02 .01
Net realized and unrealized
gain .06 .12 .17 .06
- ------------------------------------------------------------------------------------
Total income from investment
operations .09 .15 .19 .07
- ------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income (.03) (.01) (.01) (.01)
Distributions from net
realized gain (.05) (.03) -- --
- ------------------------------------------------------------------------------------
Total dividends and
distributions to shareholders (.08) (.04) (.01) (.01)
- ------------------------------------------------------------------------------------
Net asset value, end of period $1.36 $1.35 $1.24 $1.06
------------- -------- -------- --------
------------- -------- -------- --------
- ------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE(3) 6.49% 12.53% 17.97% 6.65%
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 72,849 $ 61,379 $ 41,994 $ 26,768
- ------------------------------------------------------------------------------------
Average net assets (in
thousands) $ 66,754 $ 51,473 $ 33,109 $ 25,460(4)
- ------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.41% 2.36% 1.92% 1.73%(5)
Expenses 0.93% 0.99% 1.30% 1.50%(5)
- ------------------------------------------------------------------------------------
Portfolio turnover rate(6) 64.7% 65.8% 70.7% 38.7%(5)
</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 advisor 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 the auditors' 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, 1998 were $46,737,573 and $37,811,067, respectively.
See accompanying Notes to Financial Statements.
92
<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. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. 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 an
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.
- --------------------------------------------------------------------------------
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
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund.
The Fund adjusts 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, 1998, amounts have been reclassified to reflect an increase in
undistributed net investment income of $82,781. Accumulated net realized gain on
investments 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.
93
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 1,950 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 69,325,992 $ 127,905,490 71,391,082 $ 135,657,386
Dividends and distributions reinvested 102,703,278 186,919,967 78,007,645 134,173,150
Redeemed (108,494,837) (198,171,110) (95,125,453) (181,397,633)
------------- ------------- ------------- -------------
Net increase 63,534,433 $ 116,654,347 54,273,274 $ 88,432,903
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$136,560,287 was composed of gross appreciation of $155,294,356, and gross
depreciation of $18,734,069.
- --------------------------------------------------------------------------------
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 average
daily net assets up to $600 million and 0.45% of the average daily net assets
over $600 million. The Fund's management fee for the year ended December 31,
1998 was 0.53% of the average annual net assets for the Fund.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
and sell financial futures. The Fund may buy or write put or call options on
these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
94
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS (CONTINUED)
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a receivable or payable for the
daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of December 31, 1998, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION DATE CONTRACTS DECEMBER 31, 1998 APPRECIATION
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Standard & Poors 500 Index 3/99 539 $167,831,125 $10,183,557
</TABLE>
- --------------------------------------------------------------------------------
6. ILLIQUID AND RESTRICTED SECURITIES
As of December 31, 1998, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of December 31, 1998 was $16,932,703, which
represents 1.26% of the Fund's net assets.
95
<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 with low price-earnings ratios and
better-than-anticipated earnings. Realization of current income is a secondary
consideration. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). 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
Massachusetts Mutual Life Insurance Co., an affiliate of the investment advisor.
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 an
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.
- --------------------------------------------------------------------------------
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 its 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 fiscal year in which the income or realized gain was recorded by
the Fund.
The Fund adjusts 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, 1998, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $15,246. Accumulated net realized gain on
investments was increased 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. 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.
96
<PAGE>
PANORAMA SERIES FUND, INC. - GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 47,037,578 $ 152,546,029 52,419,265 $ 167,124,059
Dividends and distributions reinvested 35,262,461 117,423,995 18,597,005 52,629,524
Redeemed (42,207,549) (132,888,480) (26,936,806) (85,923,718)
------------- ------------- ------------- -------------
Net increase 40,092,490 $ 137,081,544 44,079,464 $ 133,829,865
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$184,260,273 was composed of gross appreciation of $201,310,949, and gross
depreciation of $17,050,676.
- --------------------------------------------------------------------------------
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 average
daily net assets up to the first $300 million, 0.50% of the next $100 million
and 0.45% of average daily net assets over $400 million. The Fund's management
fee for the year ended December 31, 1998 was 0.52% of the average annual net
assets for the Fund.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
97
<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. The Fund's investment advisor
is OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. 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 an
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. As
of December 31, 1998, the Fund had available for federal income tax purposes an
unused capital loss carryover of approximately $526,000, which expires between
2002 and 2006.
- --------------------------------------------------------------------------------
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
primarily because of paydown gains and losses. The character of the
distributions made during the year from net investment income or net realized
gains may differ from its 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 fiscal year in which the
income or realized gain was recorded by the Fund.
The Fund adjusts 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, 1998, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $7,661. Accumulated net realized loss on
investments was decreased by the same amount.
- --------------------------------------------------------------------------------
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.
98
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 4,843,177 $ 5,379,324 2,834,687 $ 3,050,414
Dividends reinvested 1,290,169 1,367,579 1,434,641 1,463,333
Redeemed (5,441,013) (6,019,872) (4,214,703) (4,515,417)
------------- ------------- ------------- -------------
Net increase (decrease) 692,333 $ 727,031 54,625 $ (1,670)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$1,265,885 was composed of gross appreciation of $1,303,307, and gross
depreciation of $37,422.
- --------------------------------------------------------------------------------
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 average
daily net assets up to $300 million, 0.50% of the next $100 million and 0.45% of
average daily net assets over $400 million. The Fund's management fee for the
year ended December 31, 1998 was 0.52% of the average annual net assets for the
Fund.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
99
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS (CONTINUED)
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a receivable or payable for the
daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of December 31, 1998, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION DATE CONTRACTS DECEMBER 31, 1998 DEPRECIATION
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
U.S. Treasury Bonds, 20 yr. 3/99 14 $1,788,938 $25,811
</TABLE>
100
<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 of companies wherever located, the primary stock
market of which is outside the United States. The Funds investment advisor is
OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. 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 an
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 denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign 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.
- --------------------------------------------------------------------------------
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
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund.
101
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Fund adjusts 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, 1998, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $55,362. Accumulated net realized gain on
investments was increased 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 capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 13,905,772 $ 20,648,894 17,133,067 $ 22,813,653
Dividends and distributions reinvested 2,070,514 3,085,066 1,293,541 1,578,120
Redeemed (10,459,749) (15,318,444) (6,693,102) (8,922,846)
------------- ------------- ------------- -------------
Net increase 5,516,537 $ 8,415,516 11,733,506 $ 15,468,927
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$25,895,031 was composed of gross appreciation of $29,346,083, and gross
depreciation of $3,451,052.
- --------------------------------------------------------------------------------
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 average daily
net assets up to $250 million and 0.90% of average daily net assets over $250
million. The Fund's management fee for the year ended December 31, 1998 was
1.00% of the average annual net assets for the Fund.
The Manager has a sub-advisory agreement with Babson-Stewart Ivory International
(the Sub-Advisor) 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.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
102
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks. They
may also be used to tactically shift portfolio currency risk. The Fund generally
enters into forward contracts as a hedge upon the purchase or sale of a security
denominated in a foreign currency. In addition, the Fund may enter into such
contracts as a hedge against changes in foreign currency exchange rates on
portfolio positions.
Forward 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. The Fund will realize a gain or loss upon
the closing or settlement of the forward transaction.
Securities held in designated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where applicable.
Unrealized appreciation or depreciation on forward contracts is reported in the
Statement of Assets and Liabilities. Realized gains and losses are reported with
all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the terms of
the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
- --------------------------------------------------------------------------------
6. ILLIQUID AND RESTRICTED SECURITIES
As of December 31, 1998, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of December 31, 1998 was $143,684, which
represents 0.14% of the Fund's net assets.
103
<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. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. 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 an
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.
- --------------------------------------------------------------------------------
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
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund.
The Fund adjusts 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, 1998, amounts have been reclassified to reflect an increase in
undistributed net investment income of $2,026. Accumulated net realized gain on
investments 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. Dividends-in-kind are recognized as income
on the ex-dividend date, at the current market value of the underlying security.
Interest on payment-in-kind debt instruments is accrued as income at the coupon
rate, and a market adjustment is made periodically.
104
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 250 million shares of $0.001 par value of capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 8,117,360 $ 9,373,119 5,816,319 $ 6,566,303
Dividends and distributions reinvested 1,701,459 1,956,678 1,129,658 1,197,438
Redeemed (1,391,118) (1,612,608) (905,515) (1,008,913)
------------- ------------- ------------- -------------
Net increase 8,427,701 $ 9,717,189 6,040,462 $ 6,754,828
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$1,404,240 was composed of gross appreciation of $2,485,492, and gross
depreciation of $1,081,252.
- --------------------------------------------------------------------------------
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 average
annual net assets up to $250 million and 0.65% on such assets over of $250
million. The Fund's management fee for the year ended December 31, 1998 was
0.75% of the average annual net assets for the Fund.
The Manager has a sub-advisory agreement with BEA Associates (the Sub-Advisor)
to assist in the selection of portfolio investments for the components of the
Fund. For these services, the Manager pays BEA Associates negotiated fees.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
- --------------------------------------------------------------------------------
5. ILLIQUID AND RESTRICTED SECURITIES
As of December 31, 1998, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of December 31, 1998 was $1,358,640, which
represents 3.11% of the Fund's net assets.
105
<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. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. 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 an
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 denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign 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. As
of December 31, 1998, the Fund had available for federal income tax purposes an
unused capital loss carryover of approximately $938,000, expiring in 2006.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
106
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund. The Fund adjusts 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,
1998, amounts have been reclassified to reflect a decrease in paid-in capital of
$11,717, a decrease in undistributed net investment income of $21,492, and a
decrease in accumulated net realized loss on investments of $33,209.
- --------------------------------------------------------------------------------
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 250 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998 YEAR ENDED DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 14,229,457 $ 17,733,908 11,659,128 $ 14,199,763
Dividends and distributions reinvested 3,436,348 4,432,889 1,559,895 1,747,083
Redeemed (4,001,987) (4,994,249) (3,199,617) (3,838,215)
------------- ------------- ------------- -------------
Net increase 13,663,818 $ 17,172,548 10,019,406 $ 12,108,631
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$10,233,792 was composed of gross appreciation of $12,635,289, and gross
depreciation of $2,401,497.
- --------------------------------------------------------------------------------
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 average
annual net assets up to $250 million and 0.75% of such assets over $250 million.
The Fund's management fee for the year ended December 31, 1998 was 0.85% of the
average annual net assets for the Fund.
The Manager has entered into sub-advisory agreements with three Sub-Advisors 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-Advisors) negotiated fees.
107
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN BALANCED PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
- --------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks. They
may also be used to tactically shift portfolio currency risk. The Fund generally
enters into forward contracts as a hedge upon the purchase or sale of a security
denominated in a foreign currency. In addition, the Fund may enter into such
contracts as a hedge against changes in foreign currency exchange rates on
portfolio positions.
Forward 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. The Fund will realize a gain or loss upon
the closing or settlement of the forward transaction.
Securities held in designated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where applicable.
Unrealized appreciation or depreciation on forward contracts is reported in the
Statement of Assets and Liabilities. Realized gains and losses are reported with
all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the terms of
the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
- --------------------------------------------------------------------------------
6. ILLIQUID AND RESTRICTED SECURITIES
As of December 31, 1998, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of December 31, 1998 was $2,294,139, which
represents 2.67% of the Fund's net assets.
- --------------------------------------------------------------------------------
7. OTHER MATTERS
Effective January 4, 1999, BEA Associates (Sub-Advisor for the Fund) changed its
name to Credit Suisse Asset Management.
108
<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. Current income is not a primary consideration. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). 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 Massachusetts Mutual Life Insurance
Co., an affiliate of the investment advisor. 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 an
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 denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign 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. As
of December 31, 1998, the Fund had available for federal income tax purposes an
unused capital loss carryover of approximately $1,169,000, expiring in 2006.
- --------------------------------------------------------------------------------
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
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from its 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 fiscal year in which
the income or realized gain was recorded by the Fund.
109
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Fund adjusts 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, 1998, amounts have been reclassified to reflect a decrease in
paid-in capital of $11,251, a decrease in undistributed net investment income of
$22,953, and a decrease in accumulated net realized loss on investments of
$34,204.
- --------------------------------------------------------------------------------
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 250 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Sold 8,700,602 $ 11,570,097 11,969,510 $ 15,271,181
Dividends and distributions reinvested 2,668,268 3,682,209 1,229,889 1,426,671
Redeemed (2,957,241) (3,900,595) (1,803,689) (2,299,254)
------------- ------------- ------------- -------------
Net increase 8,411,629 $ 11,351,711 11,395,710 $ 14,398,598
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of December 31, 1998, net unrealized appreciation on investments of
$11,143,852 was composed of gross appreciation of $13,474,030, and gross
depreciation of $2,330,178.
- --------------------------------------------------------------------------------
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 average
annual net assets up to $250 million and 0.75% on such assets over $250 million.
The Fund's management fee for the year ended December 31, 1998 was 0.85% of the
average annual net assets for the Fund.
The Manager has sub-advisory agreements with three Sub-Advisors 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-Advisors) negotiated fees.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
agent for the Fund and is responsible for maintaining the shareholder registry
and shareholder accounting records for the Fund. OFS provides these services at
cost.
110
<PAGE>
PANORAMA SERIES FUND, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks. They
may also be used to tactically shift portfolio currency risk. The Fund generally
enters into forward contracts as a hedge upon the purchase or sale of a security
denominated in a foreign currency. In addition, the Fund may enter into such
contracts as a hedge against changes in foreign currency exchange rates on
portfolio positions.
Forward 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. The Fund will realize a gain or loss upon
the closing or settlement of the forward transaction.
Securities held in designated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where applicable.
Unrealized appreciation or depreciation on forward contracts is reported in the
Statement of Assets and Liabilities. Realized gains and losses are reported with
all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the terms of
the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
- --------------------------------------------------------------------------------
6. ILLIQUID AND RESTRICTED SECURITIES
As of December 31, 1998, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of December 31, 1998 was $1,271,348, which
represents 1.75% of the Fund's net assets.
- --------------------------------------------------------------------------------
7. OTHER MATTERS
Effective January 4, 1999 BEA Associates (Sub-Advisor for the Fund) changed its
name to Credit Suisse Asset Management.
111
<PAGE>
PANORAMA SERIES FUND, INC.
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Directors 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 series of Panorama Series Fund, Inc.)
as of December 31, 1998, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended December 31,
1998 and 1997, and the financial highlights for the period January 1, 1996 to
December 31, 1998. 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
audits. The financial highlights for the period January 1, 1994 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 audits 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 as of
December 31, 1998 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 audits provide 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 as of December 31, 1998,
the results of their operations, the changes in their net assets, and the
financial highlights for the respective stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
January 25, 1999
112
<PAGE>
PANORAMA SERIES FUND, INC. - TOTAL RETURN PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentage listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
LONG-TERM CAPITAL CORPORATE DIVIDEND-
GAIN DISTRIBUTION RECEIVED DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
Total Return Portfolio $ 0.1202 13.93%
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
113
<PAGE>
Panorama Series Fund, Inc. - Growth Portfolio
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentage listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
LONG-TERM CAPITAL CORPORATE DIVIDEND-
GAIN DISTRIBUTION RECEIVED DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
Growth Portfolio $ 0.2973 91.25%
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
114
<PAGE>
PANORAMA SERIES FUND, INC. - GOVERNMENT SECURITIES PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the year ended December 31, 1998
are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
115
<PAGE>
PANORAMA SERIES FUND, INC. - INTERNATIONAL EQUITY PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentage listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
CORPORATE
LONG-TERM CAPITAL DIVIDEND- RECEIVED
GAIN DISTRIBUTION DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
International Equity Portfolio $ 0.0319 N/A
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
116
<PAGE>
PANORAMA SERIES, INC. - LIFESPAN DIVERSIFIED INCOME PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentages listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
CORPORATE
LONG-TERM CAPITAL DIVIDEND- RECEIVED
GAIN DISTRIBUTION DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
LifeSpan Diversified Income Portfolio $ 0.0100 11.73%
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
117
<PAGE>
PANORAMA SERIES, INC. - LIFESPAN BALANCED PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentages listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
LONG-TERM CAPITAL CORPORATE DIVIDEND-
GAIN DISTRIBUTION RECEIVED DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
LifeSpan Balanced Portfolio $ 0.0409 17.57%
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
118
<PAGE>
PANORAMA SERIES, INC. - LIFESPAN CAPITAL APPRECIATION PORTFOLIO
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Certain distributions paid on March 23, 1998, were designated as a capital gain
distribution for federal income tax purposes as shown in the table below.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1998 which
are not designated as capital gain distributions should be multiplied by the
percentage listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
LONG-TERM CAPITAL CORPORATE DIVIDEND-
GAIN DISTRIBUTION RECEIVED DEDUCTION
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
LifeSpan Capital Appreciation Portfolio $ 0.0514 33.99%
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
119
<PAGE>
PANORAMA SERIES FUND, INC.
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------------------------------
OFFICERS AND DIRECTORS James C. Swain, Chairman of the Board of Directors
Bridget A. Macaskill, President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Andrew J. Donohue, Vice President and Secretary
Peter M. Antos, Vice President
John S. Kowalik, Vice President
Stephen F. Libera, Vice President
David P. Negri, Vice President
Michael C. Strathearn, Vice President
Kenneth B. White, Vice President
Arthur J. Zimmer, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
- ------------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
- ------------------------------------------------------------------------------------------------------
SUB-ADVISORS Babson-Stewart Ivory International
BEA Associates
Pilgrim Baxter & Associates
- ------------------------------------------------------------------------------------------------------
TRANSFER AGENT OppenheimerFunds Services
- ------------------------------------------------------------------------------------------------------
CUSTODIAN OF PORTFOLIO Bank of New York
SECURITIES
- ------------------------------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche LLP
- ------------------------------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of Panorama Series Fund, Inc.
This report must be preceded or accompanied by a Prospectus of Panorama
Series Fund, Inc. For material information concerning the Funds, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank,
are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
</TABLE>
