MAXIM SERIES FUND, INC.
8515 East Orchard Road
Englewood, Colorado 80111
TO THE SHAREHOLDER:
We are pleased to present this Annual Report for Maxim Vista Growth & Income
Portfolio for the one-year period ended October 31, 1998. Buoyed by generally
favorable economic conditions and healthy cash flows into mutual funds, stocks
shook off persistent market volatility to register good investment results. The
Asian financial crisis kept stock prices under pressure early in the period.
When the crisis subsided in late 1997, equities finished the year on a positive
note, ending the best consecutive three-year period in stock market history.
Concerned that the market might not maintain its torrid pace, investors pushed
equity prices lower in January. But good corporate earnings coupled with benign
inflation lifted the market higher over the next three months. In the spring,
the Asian crisis surfaced again, but stocks recovered quickly. That wasn't the
case when Russia's financial woes hit in early summer, igniting a global
liquidity crisis. From mid-July until late August, the market experienced its
largest correction in eight years. Stocks began to bounce back in September. But
it took two interest rate cuts by the Federal Reserve (first on September 29 and
again on October 15) to catapult equities sharply higher at the end of the
period. The rate cut on September 29 was the first since December 1996. The
Fed's decision to cut rates on October 15 marked the first time the Fed has
moved on rates between regularly scheduled Federal Open Market Committee
meetings since April 1994.
Bonds posted good investment results as interest rates fell sharply on concerns
over a slowing global economy. Early in the period, concerns over the Asian
economic crisis pushed rates lower and lifted bond prices. During the first
quarter of 1998, rates stayed in a relatively narrow range, as fears of a global
economic slowdown were offset by favorable domestic economic news. The
re-emergence of the Asian crisis in the spring helped bond prices, as rates
resumed their fall. When Russia's financial problems hit in mid-July, bond
prices soared as interest rates plummeted to historic lows amidst concerns over
a global liquidity crisis. The Fed's decision to cut interest rates late in the
period gave investors confidence that the central bank would be dilligent in
keeping the country's economy from slowing significantly. In the final two weeks
of the fiscal year, interest rates bounced off their lows and bond prices gave
back some of their gains, but only after recording solid investment results for
the fiscal year.
The following chart illustrates comparative performance for $10,000 invested in
the Maxim Growth & Income Portfolio and the Lipper Growth and Income Fund Index
from December 21, 1994 (Inception) to October 31, 1998.
<TABLE>
VISTA GROWTH & INCOME
$10,0000 INVESTMENT
Vista Total Return Vista Balance S&P 500 Total
Return S&P Balance Lipper Growth Lipper G&I Balance
& Income
------------------ -------------- -------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
12/21/94 to 10/31/95 22.25% 12,315.00 29.27% 12,927.00 19.40% 12,407.36
10/31/96 20.01% 14,780.00 24.01% 16,031.00 21.72% 15,102.19
10/31/97 29.33% 19,113.00 32.10% 21,177.00 28.03% 19,335.42
10/31/98 9.38% 20,906.00 22.06% 25,848.00 9.79% 21,228.00
Return Since Inception 20.71% 28.09% 28.07%
</TABLE>
Average Annual Total Returns, for the period ending 10/31/98
1 year Since Inception
Maxim Vista Growth 9.38% 20.71%
& Income Portfolio
Lipper Growth &
Income Fund Index 9.79% 28.07%
S&P 500 Index 22.06% 28.09%
Past performance is not predictive of future results. When shares are redeemed,
they maybe worth more or less than the original cost.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of Maxim Series Fund, Inc. This report
is not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
For more information on Maxim Series Fund, Inc., including charges and expenses,
please contact your registered representative to obtain a prospectus. Read it
carefully before investing.
MAXIM SERIES FUND
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1998
- ----------------------------------------------------------------------------------------------------
MAXIM VISTA GROWTH & INCOME PORTFOLIO
-----------------------------
ASSETS:
<S> <C>
Investment in Hub - Growth and Income Portfolio, at value $ 161,426,776
Receivable for investments sold 52,852
-------------------
-------------------
Total assets 161,479,628
-------------------
LIABILITIES:
Payable for redemptions 31,624
Other liabilities 281,387
-------------------
-------------------
Total liabilities 313,011
-------------------
NET ASSETS $ 161,166,617
===================
NET ASSETS REPRESENTED BY:
Capital stock, $.10 par value $ 10,099,428
Additional paid-in capital 120,854,074
Net unrealized appreciation on investments 19,774,649
Undistributed net investment income 107,332
Accumulated net realized gain on investments 10,331,134
-------------------
NET ASSETS $ 161,166,617
===================
NET ASSET VALUE PER OUTSTANDING SHARE $ 1.5958
SHARES OF CAPITAL STOCK:
Authorized 200,000,000
Outstanding 100,994,281
See notes to financial statements.
MAXIM SERIES FUND
MAXIM SERIES FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1998
- ---------------------------------------------------------------------------------------------------------
MAXIM VISTA GROWTH & INCOME PORTFOLIO
---------------------------------------
INVESTMENT INCOME:
Investment income allocated from Hub portfolio $ 2,657,734
Expenses allocated from Hub portfolio (739,414)
-------------------
-------------------
Total investment income 1,918,320
-------------------
EXPENSES:
Advisory fees 832,302
-------------------
-------------------
Total expenses 832,302
-------------------
NET INVESTMENT INCOME 1,086,018
-------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 10,331,134
Change in net unrealized appreciation on investments 1,294,612
-------------------
-------------------
Net change in realized and unrealized appreciation on investments 11,625,746
-------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 12,711,764
===================
See notes to financial statements.
MAXIM SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1998 AND 1997
- ---------------------------------------------------------------------------------------------------------------
MAXIM VISTA GROWTH & INCOME PORTFOLIO
-------------------------------------------------
1998 1997
----------------- -----------------
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,086,018 1,217,683
Net realized gain 10,331,134 16,621,457
Change in net unrealized appreciation 1,294,612 10,136,096
----------------- -----------------
----------------- -----------------
Net increase in net assets resulting from operations 12,711,764 27,975,236
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (977,424) (1,241,911)
From short-term capital gain (3,623,620) (1,716,872)
From long-term capital gain (12,997,837) (4,914,562)
----------------- -----------------
----------------- -----------------
Total distributions (17,598,881) (7,873,345)
----------------- -----------------
SHARE TRANSACTIONS:
Net proceeds from sale of shares 27,501,075 28,401,339
Reinvestment of distributions 17,598,881 7,873,492
Cost of shares redeemed (14,099,838) (7,753,385)
----------------- -----------------
Net increase in net assets resulting from share transactions 31,000,118 28,521,446
----------------- -----------------
Total increase in net assets 26,113,001 48,623,337
----------------- -----------------
NET ASSETS:
Beginning of period 135,053,616 86,430,279
----------------- -----------------
End of period $ 161,166,617 $ 135,053,616
================= =================
OTHER INFORMATION:
SHARES:
Sold 16,847,558 18,800,487
Issued in reinvestment of distributions 11,451,538 5,692,550
Redeemed (8,711,237) (5,013,305)
----------------- -----------------
Net increase in shares of beneficial interest outstanding 19,587,859 19,479,732
================= =================
OUTSTANDING SHARES AT:
Beginning of period 81,406,422 61,926,690
----------------- -----------------
End of period 100,994,281 81,406,422
================= =================
See notes to financial statements.
MAXIM SERIES FUND
MAXIM VISTA GROWTH & INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------------
Selected data for a share of capital stock for the years ended October 31, 1998, 1997 and 1996, and the period December 21, 1994
(inception) to October 31, 1995 were as follows:
Period Ended October 31,
-------------------------------------------------------------
1998 1997 1996 1995
------------- ------------- ------------ ------------
Net Asset Value, Beginning of Period $ 1.6590 $ 1.3957 $ 1.2133 $ 1.0000
Income from Investment Operations
Net investment income 0.0113 0.0158 0.0219 0.0174
Net Realized and Unrealized Gain 0.1351 0.3677 0.2147 0.2133
------------- ------------- ------------ ------------
Total Income From Investment Operations 0.1464 0.3835 0.2366 0.2307
------------- ------------- ------------ ------------
Less Distributions
From Net Investment Income (0.0103) (0.0162) (0.0215) (0.0174)
From Net Realized Gain (0.1993) (0.1040) (0.0327) 0.0000
------------- ------------- ------------ ------------
Total Distributions (0.2096) (0.1202) (0.0542) (0.0174)
------------- ------------- ------------ ------------
Net Asset Value, End of Period $ 1.5958 $ 1.6590 $ 1.3957 $ 1.2133
============= ============= ============ ============
Total Return 9.38% 29.33% 20.01% 22.25%
Net Assets, End of Period $ 161,166,617 $ 135,053,616 $ 86,430,279 $ 49,403,163
Ratio of Expenses to Average Net Assets 1.00% 1.00% 1.00% 1.01% *
Ratio of Net Investment Income to Average Net Assets 0.69% 1.08% 1.75% 2.21% *
*Annualized
The per share amounts and ratios reflect income and expenses assuming inclusion of the Portfolio's proportionate share of
income and expenses of the Hub Portfolio.
</TABLE>
MAXIM SERIES FUND
MAXIM VISTA GROWTH & INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED OCTOBER 31, 1998 AND 1997
- -------------------------------------------------------------------------------
1. HISTORY OF THE FUND
Maxim Series Fund, Inc. (the Fund) is a Maryland corporation organized
on December 7, 1981 as an open-end management investment company. The
Maxim Vista Growth & Income Portfolio (the Portfolio) is
non-diversified. The Portfolio commenced operations on December 21,
1994. Interests in the Portfolio are represented by separate classes of
beneficial interest of the Fund. Shares of the Fund are sold only to
FutureFunds Series Account II of Great-West Life & Annuity Insurance
Company (the Company), to fund benefits under variable annuity contracts
and variable life insurance policies issued by the Company. The shares
are sold at a price equal to the respective net asset value per share of
each class of shares.
The Fund seeks to achieve the investment objective of the Portfolio
through the adoption of a Hub and Spoke structure. Contribution of
Portfolio (i.e., the Spoke) investible funds to the Hub portfolio are
made in exchange for beneficial interests in the Hub portfolio of equal
value. The Hub portfolio is the Growth and Income Portfolio; a
non-diversified open-end management investment company organized as a
trust under the laws of the State of New York and registered under the
Investment Company Act of 1940, as amended. Financial statements of the
Hub portfolio are presented following the Portfolio's financial
statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the
Portfolio, which are in accordance with the accounting principles
generally accepted in the investment company industry:
Dividends
Dividends from investment income of the Portfolio are declared and
reinvested quarterly and dividends from capital gains are declared and
reinvested annually.
Security Valuation
The Portfolio's investment in the Hub portfolio is valued based on the
daily reported net asset value of the Hub portfolio. The Portfolio
receives an allocation of investment income and Hub expenses as well as
realized and unrealized gains and losses on a daily basis from the Hub.
In addition, the Portfolio accrues its own expenses daily as incurred.
Federal Income Taxes
For federal income tax purposes, the Portfolio intends to qualify as a
regulated investment company under the provisions of the Internal
Revenue Code by distributing substantially all of its taxable net income
(both ordinary and capital gain) to its shareholders and complying with
other requirements for regulated investment companies. Accordingly, no
provision for federal income taxes has been made.
<PAGE>
3. INVESTMENT ADVISORY AGREEMENT
The Fund had entered into an investment advisory agreement with The
Great-West Life Assurance Company through October 31, 1996. Effective
November 1, 1996, a wholly-owned subsidiary of the Company, GW Capital
Management, LLC, serves as investment advisor. As compensation for its
services to the Fund with respect to the Maxim Vista Growth & Income
Portfolio, the investment advisor receives monthly compensation at the
annual rate of .53% of the average daily net assets of the Maxim Vista
Growth & Income Portfolio.
4. INVESTMENT TRANSACTIONS
The Portfolio's percentage interest in the Hub portfolio is 5.87% at
October 31, 1998.
INDEPENDENT AUDITORS' REPORT
DELOITTE & TOUCHE LLP
DENVER COLORADO
To the Board of Directors and Shareholders of
Maxim Series Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Maxim
Vista Growth & Income Portfolio of Maxim Series Fund, Inc. (the "Fund") as of
October 31, 1998, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended, and financial highlights for the period from December 21, 1994
(inception) through October 31, 1998. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
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 and financial highlights. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Maxim
Vista Growth & Income Portfolio of Maxim Series Fund, Inc. as of October 31,
1998, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and its financial
highlights for the period from December 21, 1994 (inception) through October 31,
1998, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
/s/DELOITTE & TOUCHE LLP
December 29, 1998
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 94.0%
- --------------------------------------------------------------------------------
Common Stock -- 90.5%
Aerospace -- 1.2%
550,000 General Dynamics Corp. $32,553,125
-----------
Agricultural Production/Services-- 0.3%
128,000 Potash Corp. of Saskatchewan
(Canada) 8,848,000
Airlines -- 0.7%
300,000 AMR Corp. 20,100,000
----------
Automotive-- 1.2%
600,000 Ford Motor Co. 32,550,000
----------
Banking-- 4.5%
664,480 BankAmerica Corp. 38,166,070
500,000 Comerica, Inc. 32,250,000
387,000 Firstar Corp. 21,962,250
375,000 National City Corp. 24,117,188
100,000 Star Banc Corp. 7,562,500
----------
124,058,008
Biotechnology -- 0.6%
250,000 Biogen, Inc.* 17,375,000
-----------
Broadcasting-- 0.8%
750,000 CBS Corp. 20,953,125
-----------
Cabletelevision-- 2.4%
700,000 Comcast Corp., Special Class A 34,562,500
772,241 Tele-Communications, TCI Group,
Class A* 32,530,652
67,093,152
Chemicals -- 2.1%
600,000 Air Products and Chemicals, Inc. 22,650,000
246,300 Crompton & Knowles Corp. 3,956,194
633,200 Engelhard Corp. 13,297,200
500,000 Imperial Chemical Industries, PLC,
ADR (United Kingdom) 18,125,000
58,028,394
Computer Software -- 2.3%
731,000 American Management Systems, Inc.* 22,432,563
482,000 Computer Associates International 18,978,750
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
750,000 Oracle Corp.* $22,171,875
-----------
63,583,188
Computers/Computer Hardware -- 7.8%
950,000 EMC Corp.* 61,156,250
475,000 Gateway 2000 Inc.* 26,510,938
450,000 Ingram Micro, Inc., Class A* 20,475,000
600,000 Seagate Technology, Inc.* 15,825,000
450,000 Solectron Corp.* 25,762,500
350,000 Storage Technology Corp.* 11,703,125
600,000 Sun Microsystems, Inc.* 34,950,000
300,000 Texas Instruments Inc. 19,181,250
-----------
215,564,063
Consumer Products -- 4.2%
700,000 Avon Products, Inc. 27,781,250
475,000 Fortune Brands, Inc. 15,704,688
1,400,000 Philip Morris Companies, Inc. 71,575,000
-----------
115,060,938
Electronics/Electrical Equipment-- 0.6%
500,000 Vitesse Semiconductor Corp.* 16,125,000
-----------
Entertainment/Leisure -- 2.7%
550,000 Carnival Corp., Class A 17,806,250
350,000 Time Warner, Inc. 32,484,375
384,500 Viacom, Inc. Class B* 23,021,938
-----------
73,312,563
Environmental Services -- 1.4%
600,000 Allied Waste Industries, Inc.* 12,975,000
532,025 Waste Management, Inc. 24,007,628
-----------
36,982,628
Financial Services -- 3.9%
255,000 Associates First Capital Corp.,
Class A 17,977,500
900,000 Federal Home Loan Mortgage Corp. 51,750,000
250,000 Federal National Mortgage
Association, 17,703,125
305,000 Morgan Stanley, Dean Witter,
Discover and Co. 19,748,750
107,179,375
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Food/Beverage Products -- 2.4%
800,000 PepsiCo Inc. $27,000,000
300,000 Quaker Oats Co. 17,718,750
200,000 Unilever NV, ADR (Netherlands) 15,050,000
331,300 Whitman Corp. 7,102,244
----------
66,870,994
Health Care/Health Care Services-- 3.3%
600,000 HBO & Co. 15,750,000
2,741,700 HEALTHSOUTH Corp.* 33,243,113
814,500 Tenet Healthcare Corp.* 22,755,094
255,000 Wellpoint Health Networks, Inc.,
Class A* 18,774,375
90,522,582
Insurance -- 4.6%
700,000 ACE, LTD (Bermuda) 23,712,500
410,000 Exel LTD, Class A (Bermuda) 31,339,375
300,000 NAC Re Corp. 14,531,250
425,000 Reliastar Financial Corp. 18,620,313
900,000 The Allstate Corp. 38,756,250
-----------
126,959,688
Machinery & Engineering Equipment-- 0.6%
575,000 McDermott International, Inc. 16,854,688
-----------
Manufacturing -- 1.9%
527,500 Ingersoll-Rand Co. 26,638,750
470,000 Johnson Controls, Inc. 26,437,500
-----------
53,076,250
Metals/Mining -- 1.6%
400,000 Aluminum Co. of America
(ALCOA) 31,700,000
550,000 Newmont Mining Corp. 11,687,500
-----------
43,387,500
Office/Business Equipment -- 1.4%
400,000 Xerox Corp. 38,750,000
-----------
Oil & Gas-- 7.5%
806,200 Coastal Corp. 28,418,550
500,000 Diamond Offshore Drilling, Inc. 15,343,750
450,000 Halliburton Co. 16,171,875
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
545,000 Mobil Corp. $41,249,688
400,000 Schlumberger, LTD 21,000,000
667,900 Texaco, Inc. 39,614,819
800,000 Tosco Corp. 22,450,000
659,900 USX-Marathon Group 21,570,481
-----------
205,819,163
Packaging -- 0.6%
509,900 Owens-Illinois, Inc.* 15,583,819
-----------
Pharmaceuticals-- 3.9%
153,000 Bristol-Myers Squibb Co. 16,916,063
608,000 Pharmacia & Upjohn, Inc. 32,186,000
325,000 Schering-Plough Corp. 33,434,375
400,000 SmithKline Beecham PLC, ADR
(United Kingdom) 25,500,000
108,036,438
Photographic Equipment -- 0.9%
300,000 Eastman Kodak Co. 23,250,000
-----------
Printing & Publishing-- 0.9%
900,000 New York Times Co., Class A 25,425,000
-----------
Real Estate Investment Trust-- 1.5%
373,800 Duke Realty Investments, Inc. 8,924,475
480,000 Equity Residential Properties Trust 20,160,000
488,700 Public Storage, Inc. 13,042,181
-----------
42,126,656
Restaurants/Food Services -- 0.4%
450,000 CKE Restaurants, Inc. 11,840,625
-----------
Retailing-- 9.8%
825,000 American Stores Co. 26,864,063
688,400 CVS Corp. 31,451,275
800,000 Dayton-Hudson Corp. 33,900,000
442,018 Federated Department Stores* 16,990,061
1,000,000 Kroger Co.* 55,500,000
1,100,000 Office Depot, Inc.* 27,500,000
450,000 Payless ShoeSource, Inc. 21,121,875
900,000 Safeway, Inc.* 43,031,250
500,000 The Limited, Inc. 12,812,500
-----------
269,171,024
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Shipping/Transportation -- 0.7%
600,000 Burlington Northern Santa Fe $ 18,525,000
------------
Telecommunications-- 5.6%
520,000 American Tower Corp.* 11,375,000
400,000 Bell Atlantic Corp. 21,250,000
550,000 BellSouth Corp. 43,896,875
375,000 Crown Castle International Corp.* 4,828,125
800,500 MCI WorldCom, Inc.* 44,227,625
368,500 Sprint Corp. 28,282,375
-----------
153,860,000
Utilities -- 6.2%
750,000 Consolidated Edison, Inc. 37,593,750
300,000 DQE, Inc. 11,831,250
600,000 Duke Energy Corp. 38,812,500
600,000 FPL Group Inc. 37,537,500
750,000 Pinnacle West Capital Corp. 32,859,375
350,000 Unicom Corp. 13,190,625
-----------
171,825,000
Total Common Stock 2,491,250,986
(Cost $1,876,113,553)
Convertible Preferred Stock -- 1.8%
Cabletelevision -- 0.3%
150,000 MediaOne Group "ATI" Premium
Income Exchangeable Securities
(PIES), 6.25%, 08/15/01 Series 8,081,250
Manufacturing -- 0.2%
240,000 Ingersoll-Rand Co., 6.75%,
12/31/49 Series 6,090,000
Financial Services -- 0.3%
243,000 Suiza Capital Trust II, # 5.50%,
04/01/28 Series 8,045,244
----------
Packaging -- 0.1%
60,000 Owens-Illinois, Inc., 4.75%,
12/31/49 Series 2,407,500
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- (continued)
- --------------------------------------------------------------------------------
Retailing -- 0.2%
70,000 CVS Corp., 6.00%,
05/15/01 Series $ 6,020,000
-----------
Telecommunications-- 0.4%
50,000 TCI Pacific, 5.0%,
7/31/06 Series 10,750,000
Utilities -- 0.3%
102,000 Houston Industries, Inc., 7.00%,
07/01/00 Series 8,268,375
----------
Total Convertible Preferred Stock 49,662,369
(Cost $43,031,325)
Principal
Amount
Convertible Corporate Notes & Bonds -- 1.7%
Biotechnology -- 0.2%
$4,000,000 Centocor Inc., #4.75%, 02/15/05 4,270,120
----------
Computers/Computer Hardware-- 0.4%
3,600,000 EMC Corp., #3.25%, 03/15/02 10,373,436
-----------
Electronics/Electrical Equipment-- 0.3%
7,000,000 Xilinx, Inc., #5.25%, 11/01/02 7,171,850
----------
Health Care/Health Care Services-- 0.2%
5,000,000 Res-Care Inc., #6.00%, 12/01/04 6,168,750
----------
Media/Advertising-- 0.3%
8,000,000 Clear Channel Communications,
Inc., 2.63%, 04/01/03 7,890,000
Telecommunications -- 0.3%
8,000,000 Bell Atlantic Financial Services,
Inc., #4.25%, 09/15/05 7,880,000
----------
Total Convertible Corporate 43,754,156
Notes & Bonds
(Cost $35,600,000)
- --------------------------------------------------------------------------------
Total Long-Term Investments 2,584,667,511
(Cost $1,954,744,878)
- --------------------------------------------------------------------------------
<PAGE>
Growth and Income Portfolio
Portfolio of Investments October 31, 1998 (continued)
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------
Short-Term Investments -- 6.2%
- --------------------------------------------------------------------------------
U. S. Government Agency Obligations -- 4.3%
$118,496,000 Federal Home Loan Bank, Discount
Note, 5.40%, 11/02/98 $ 118,460,451
-------------
Floating Rate Note -- 1.9%
52,900,000 General American Funding
Agreement, 5.77%, 03/01/99 53,154,360
- --------------------------------------------------------------------------------
Total Short-Term Investments $171,614,811
(Cost $171,614,811)
- --------------------------------------------------------------------------------
Total Investments--100.20% $2,756,282,322
(Cost $2,126,359,689)
- --------------------------------------------------------------------------------
<PAGE>
Statement of Assets and Liabilities October 31, 1998
- --------------------------------------------------------------------------------
Growth and
Income
Portfolio
ASSETS:
Investment securities,
at value (Note 1) $2,756,282,322
Cash.................................. 53,506
Receivables:
Investment securities sold......... 10,677,665
Interest and dividends............. 2,766,602
Other assets.......................... 17,881
-------
Total assets................. 2,769,797,976
--------------
LIABILITIES:
Payable for investment securities purchased16,387,797
Accrued liabilities: (Note 2)
Investment advisory fees........... 882,226
Administration fees................ 110,278
Custodian.......................... 28,323
Other.............................. 244,283
--------
Total Liabilities............ 17,652,907
-----------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS..................$2,752,145,069
==============
Cost of Investments...................$2,126,359,689
==============
<PAGE>
Statement of Operations For the year ended October 31, 1998
- --------------------------------------------------------------------------------
Growth and
Income
Portfolio
INVESTMENT INCOME:
Dividend.............................. $37,303,954
Interest.............................. 11,002,262
Foreign taxes withheld................ (217,262)
----------
Total investment income............ 48,088,954
-----------
EXPENSES: (Note 2)
Investment Advisory fees.............. 11,363,349
Administration fees................... 1,420,419
Custodian fees........................ 170,450
Professional fees..................... 118,028
Trustees fees and expenses............ 56,817
Other................................. 222,872
--------
Total expenses..................... 13,351,935
-----------
Net investment income................. 34,737,019
-----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on:
Investments........................ 203,655,068
Futures transactions............... 79,207
Change in net unrealized appreciation /
depreciation on investments and futures
transactions................. 20,044,309
-----------
Net realized and unrealized gain (loss) on
investments and futures transactions 223,778,584
Net increase in net assets from operations$258,515,603
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
<TABLE>
Growth and
Income
Portfolio
For the Year Ended October 31
1998 1997
------ ------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
<S> <C> <C>
Net investment income.................................. $ 34,737,019 $ 39,881,845
Net realized gain on investments and futures transactions 203,734,275
141,951,607
Change in net unrealized appreciation (depreciation) on
investments and futures transactions................... 20,044,309 231,319,779
----------- ------------
Increase in net assets from operations................. 258,515,603 636,830,358 1,266,651 298,212,099
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions..........................................1,057,119,906 788,831,006
Withdrawals............................................ (1,226,800,866) (854,698,879)
---------------- --------------
Net increase (decrease) from transactions in
investors' beneficial interests (169,680,960) (65,867,873)
Net increase (decrease) in net assets.................. 88,834,643 570,962,485
NET ASSETS:
Beginning of period.................................... 2,663,310,426 2,092,347,941
-------------- --------------
End of period..........................................$2,752,145,069 $2,663,310,426
============== ==============
</TABLE>
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies -- Growth and Income
Portfolio ("GIP"), (the "Portfolio") is
separately registered under the Investment Company Act of 1940, as amended, as
non-diversified, open end management investment companies organized as trusts
under the laws of the State of New York. Each declaration of trust permits the
Trustees to issue beneficial interests in the respective Portfolios. The GIP
commenced operations on November 19, 1993. The following is a summary of
significant accounting policies followed by the Portfolios: The preparation of
financial statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
A. Valuation of investments -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for which
sale prices are not available and other over-the-counter securities are valued
at the last quoted bid price. Bonds and other fixed income securities (other
than short-term obligations), including listed issues, are valued on the basis
of valuations supplied by pricing services or by matrix pricing systems of a
major dealer in bonds. Short-term debt securities with 61 days or more to
maturity at time of purchase are valued, through the 61st day prior to
maturity, at market value based on quotations obtained from market makers or
other appropriate sources; thereafter, the value on the 61st day is amortized
on a straight-line basis over the remaining number of days to maturity.
Short-term investments with 60 days or less to maturity at time of purchase
are valued at amortized cost, which approximates market. Portfolio securities
for which there are no such quotations or valuations are valued at fair value
as determined in good faith by or at the direction of the Trustees. B.
Repurchase agreements -- It is the Portfolios' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Trusts' custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the Trusts
may be delayed or limited. C. Futures contracts -- When a Portfolio enters
into a futures contract, it makes an initial margin deposit in a segregated
account, either in cash or liquid securities. Thereafter, the futures contract
is marked to market and the portfolio makes (or receives) additional cash
payments daily to the broker. Changes in the value of the contract are
recorded as unrealized appreciation/-depreciation until the contract is closed
or settled. The Portfolios invested a portion of its liquid assets in long
stock index futures contracts to more fully participate in the market. Use of
long futures contracts subjects the Portfolios to risk of loss up to the
amount of the nominal value of the contract. The Portfolios may enter into
futures contracts only on exchanges or boards of trade. The exchange or board
of trade acts as the counterparty to each futures transaction, therefore, the
Portfolio's credit risk is limited to failure of the exchange or board of
trade. As of October 31, 1998, the Portfolios had no outstanding futures
contracts. D. Security transactions and investment income -- Investment
transactions are accounted for on the trade date (the date the order to buy or
sell is executed).
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Securities gains and losses are calculated on the identified cost basis.
Interest income is accrued as earned. Dividend income is recorded on the
ex-dividend date. E. Organization costs -- Organization and initial
registration costs incurred in connection with establishing the Portfolios
have been deferred and are being amortized on a straight-line basis over a
sixty month period beginning at the commencement of operations of each
Portfolio. F. Federal income taxes -- The Portfolios intend to continue to
qualify as partnerships and therefore net investment income and net realized
gains are taxed to the partners. Accordingly, no tax provisions are recorded
by the Portfolios. The investors in the Portfolios must take into account
their proportionate share of the Portfolios' income, gains, losses,
deductions, credits and tax preference items in computing their federal income
tax liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to distribute
to investors their net investment income or their net realized gains, if any.
It is intended that the Portfolios will be managed in such a way that
investors in the Portfolio will be able to satisfy the requirements of
subchapter M of the Internal Revenue Code to be taxed as regulated investment
companies. G. Expenses -- Expenses directly attributable to a Portfolio are
charged to that Portfolio; other expenses are allocated on another reasonable
basis.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid a
fee. The fee is computed daily and paid monthly at an annual rate equal to
0.40% of the Portfolios' average daily net assets. Chase Asset Management,
Inc. ("CAM"), a registered investment advisor, is the sub-investment advisor
to each of the Portfolios pursuant to a Sub-Investment Advisory Agreement
between CAM and Chase. CAM is a wholly owned subsidiary of Chase and is
entitled to receive a fee, payable by Chase from its advisory fee, at an
annual rate equal to 0.20% of each Portfolio's average daily net assets. B.
Custodial fees -- Chase, as Custodian provides safekeeping services for the
Portfolios' securities. Compensation for such services are presented in the
Statement of Operations as custodian fees. C. Administration fee -- Pursuant
to an Administration Agreement, Chase (the "Administrator") provides certain
administration services to the Trusts. For these services and facilities, the
Administrator receives from each Portfolio a fee computed at the annual rate
equal to 0.05% of the respective Portfolio's average daily net assets.
3. Investment Transactions -- For the year ended October 31, 1998, purchases and
sales of investments (excluding short-term investments) were as follows:
GIP
Purchases (excluding U.S. Government) $3,049,154,688
Sales (excluding U.S. Government) 3,191,229,186
Sales of U.S. Government.... 63,164,063
The portfolio turnover rates of GIP for the year ended October 31, 1998,
was 113% respectively. 4. Retirement Plan -- The Portfolios have
adopted an unfunded noncontributory defined benefit pension plan covering all
independent trustees of the Portfolios who will have served as an independent
trustee for at least five years at the time of retirement.
<PAGE>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Benefits under this plan are based on compensation and years of service. Pension
expenses for the year ended October 31, 1998, included in Trustees Fees and
Expenses in the Statement of Operations, and accrued pension liability included
in other accrued liabilities, respectively, in the Statement of Assets and
Liabilities were as follows:
Accrued
Pension Pension
Expenses Liability
GIP......................... $22,976 $82,391
5. Bank Borrowings -- The Portfolios may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Portfolio's total assets
must be repaid before the Portfolio may make additional investments. The
Portfolios have entered into an agreement, enabling them to participate with
other Chase Vista Funds in an unsecured line of credit with a syndicate of
banks, which permits borrowings up to $350 million, collectively. Interest is
charged to each Portfolio based on its borrowings at an annual rate equal to the
sum of the Federal Funds Rate plus 0.35%. The Portfolios also pay a commitment
fee of 0.055% per annum on the average daily amount of the available commitment,
which is allocated, on a pro-rata basis to the funds. The commitment fee is
included in Other expenses on the Statement of Operations. Borrowings are
payable on demand. The Portfolios had no borrowings outstanding at October 31,
1998, nor at any point during the year.
<PAGE>
Report of Independent Accountants
- -------------------------------------------------------------------------------
To the Trustees and Beneficial Interest Holders of
Growth and Income Portfolio and Capital Growth Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets present fairly, in all material respects, the financial
position of Growth and Income Portfolio and Capital Growth Portfolio (the
"Portfolios") at October 31, 1998, the results of each of their operations for
the year then ended and the changes in each of their net assets for each of the
two years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of the
Portfolios' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, New York 10036
December 15, 1998
<TABLE> <S> <C>
<ARTICLE> 6
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MAXIM SERIES FUND - VISTA GROWTH & INCOME FDS
</LEGEND>
<CIK> 0000356476
<NAME> MAXIM SERIES FUND, INC.
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<NUMBER> 23
<NAME> VISTA GROWTH & INCOME
<MULTIPLIER> 1000
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<S> <C>
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<PERIOD-START> NOV-1-1997
<PERIOD-END> OCT-31-1998
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