<PAGE>
MML Equity Index Fund
To Our Shareholders
Economic Strength Continues
Over seven and a half years into the current expansion and the factors that have
been critical in shaping economic behavior - a broad-based expansion free of
major excesses, low inflation, a Federal budget deficit that has been falling,
now down to $50-$60 billion, and a Federal Reserve that is sensitive to
potential price pressures but not given to aggressiveness are still in place.
In the first half of 1997, consumption drove economic gains, with solid support
from private investment. Employment continued to grow, as did personal income,
and consumer confidence reached a long-time high. These factors allowed
businesses to build up inventories in the first quarter to meet consumer demand,
which in turn supported the consumer behavior.
With Little Concern About Inflation
Even with unemployment as low as it has been, there are few signs that inflation
is a concern. During the first half of the year, even while Chairman Greenspan
built a case for raising rates during several appearances before congressional
committees, the Federal Reserve made only one interest rate move -- a
quarter-point tightening on March 25, 1997.
Domestic Stocks Surge
With a steady economy, lean, competitive and profitable corporations and
favorable monetary policy, the stock market soared to new heights. Both the Dow
Jones Industrial Average and the Standard & Poor's 500 set and then surpassed
records during the past six months. When you consider that the U.S. market has
effectively doubled over the past two and a half years, nightly reports of the
markets new records are almost old news.
Even while the major market indices have made news, it's only been recently that
the bullishness has broadened. Particularly during the first quarter, it was
predominately the very largest growth companies that were leading the market.
The `Nifty Fifty' largest U.S. companies' stocks pushed both index performance
and their own prices to new highs. In the second quarter, however, we began to
see investors once again include smaller company stocks and some previously
out-of-favor companies in their focus.
During the first half of this year, international stock markets have also done
well. Major markets in continental Europe, with the exception of the United
Kingdom, have been quite strong, benefiting from corporate belt-tightening and
favorable exchange rates. Japan has rebounded nicely, and Latin American markets
have performed well on rapid growth and political stability. International index
performance has lagged that reported by the domestic market primarily because of
difficulties in emerging Southeast Asian markets over the period.
A Positive Environment for Bonds
The past six months have been positive for the debt markets as well, though
response to economic news has not been nearly as dramatic as stock market
reaction. The first quarter was somewhat difficult for most areas of the bond
market, due to uncertainty about interest rates and then the Federal Reserve's
March tightening. But in the second quarter, after expectations of further
tightening were not realized, rates began to drop and bonds recouped their
losses.
Some areas of the bond market have been very positive, particularly corporate
bonds, with performance that is tied to many of the factors supporting stocks.
Triple B-rated issues have also done well. Triple B bonds tend to have higher
yields than higher-rated bonds, and since income has been the major component of
bond total returns so far this year, they've been very strong.
Balancing Risk and Reward in a High Priced Market
At this time, there is nothing in the forecast to shake our view that economic
growth can continue throughout 1997. However, particularly in the case of
large-cap domestic stocks, there is risk associated with any market that's
enjoyed the terrific run ours has over the past several years. MassMutual's
investment philosophy is grounded in the belief that protecting capital against
downturns is just as important over the long term as is participating in the
advances of bull markets.
We look for value when we evaluate both stocks and bonds, seeking to avoid the
risk that follows buying a security that has reached or is nearing a peak high.
As a result, while we take advantage of the opportunities a fast-paced market
provides, we tend to be more cautious than some of our more growth-oriented
peers. Over the market's history, the benefits of this approach have been borne
out, and we expect that to continue in the future.
/s/ Stuart H. Reese
Stuart H. Reese
President
MML Series Investment Fund
July 31, 1997
1
<PAGE>
MML Equity Index Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments at value (See Schedule of Investments)
(Notes 2A, 2B, and 4)
Equities (Identified cost: $20,016,581,).......................................................... $ 22,118,375
Short-term investments (Identified cost: $48,674)................................................. 48,674
--------------
Total investments................................................................................ 22,167,049
Cash............................................................................................... 102
Interest and dividends receivable.................................................................. 27,607
--------------
Total assets..................................................................................... 22,194,758
--------------
LIABILITIES
Investment management fee payable (Note 3)......................................................... 14,266
Accrued liabilities................................................................................ 8,967
--------------
Total liabilities................................................................................ 23,233
--------------
NET ASSETS......................................................................................... $ 22,171,525
==============
Net assets consist of:
Series shares (par value $.01 per share; an unlimited number authorized) (Note 5).................. $ 20,011
Additional paid-in capital......................................................................... 19,991,395
Undistributed net investment income (Notes 2C and 2D).............................................. 59,591
Undistributed net realized loss on investments..................................................... (1,266)
Net unrealized appreciation on investments (Note 2A)............................................... 2,101,794
--------------
NET ASSETS......................................................................................... $ 22,171,525
==============
Outstanding series shares.......................................................................... 2,001,143
==============
Net asset value per share.......................................................................... $ 11.08
==============
</TABLE>
See Notes to Financial Statements.
2
<PAGE>
MML Equity Index Fund
STATEMENT OF OPERATIONS
For the Period Ended June 30, 1997*
(Unaudited)
<TABLE>
<CAPTION>
Investment income (Note 2B)
<S> <C>
Dividends.......................................................................................... $ 71,995
Interest........................................................................................... 10,833
--------------
Total income..................................................................................... 82,828
--------------
Expenses
Investment management fee (Note 3)................................................................. 14,266
Audit fees......................................................................................... 4,980
Trustees' fees..................................................................................... 3,988
Other.............................................................................................. 3
--------------
Total expenses................................................................................... 23,237
--------------
Net investment income (Notes 2C and 2D)............................................................ 59,591
--------------
Net realized and unrealized gain (loss) on investments (Notes 2A, 2B, 2C and 2D)
Net realized loss on investments (Notes 2B, 2C and 2D)............................................. (1,266)
--------------
Net unrealized appreciation on investments (Note 2A)............................................... 2,101,794
--------------
Net gain........................................................................................... 2,100,528
--------------
Net increase in net assets resulting from operations............................................... $ 2,160,119
==============
</TABLE>
*The Fund commenced operations on May 1, 1997.
See Notes to Financial Statements.
3
<PAGE>
MML Equity Index Fund
STATEMENT OF CHANGES IN NET ASSETS
Period Ended June 30, 1997*
(Unaudited)
<TABLE>
<CAPTION>
Increase (decrease) in net assets
<S> <C>
Operations:
Net investment income.............................................................................. $ 59,591
Net realized loss on investments................................................................... (1,266)
Net unrealized appreciation on investments......................................................... 2,101,794
--------------
Net increase in net assets resulting from operations............................................... 2,160,119
Net increase in capital share transactions (Note 5)................................................ 20,011,406
--------------
Total increase................................................................................... 22,171,525
NET ASSETS, at beginning of period................................................................. 0
--------------
NET ASSETS, at end of period....................................................................... $ 22,171,525
==============
Undistributed net investment income included in net assets at end of the period.................... $ 59,591
==============
</TABLE>
*The Fund commenced operations on May 1, 1997.
See Notes to Financial Statements.
4
<PAGE>
MML Equity Index Fund
FINANCIAL HIGHLIGHTS
Selected per share data for a series share outstanding throughout the period.
<TABLE>
<CAPTION>
Period
Ended
June 30, 1997*
(Unaudited)
-----------
<S> <C>
Net asset value:
Beginning of period.............................................................................. $ 10.000
----------
Income from investment operations:
Net investment income.............................................................................. 0.030
Net realized and unrealized gain on investments.................................................... 1.050
----------
Total from investment operations................................................................... 1.080
----------
Net asset value:
End of period.................................................................................... $ 11.080
==========
Total return***.................................................................................... 10.80%
Net assets (in millions):
End of period.................................................................................... $ 22.17
Ratio of operating expenses to average net assets.................................................. 0.11%**
Ratio of net investment income to average net assets............................................... 0.28%**
Portfolio turnover rate............................................................................ 0%
</TABLE>
* The Fund commenced operations on May 1, 1997.
** Percentages represent results for the period and are not annualized.
*** Total return information shown in the Financial Highlights table 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
figure for the period shown.
See Notes to Financial Statements.
5
<PAGE>
MML EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES - 99.76%
<S> <C> <C>
Advertising - 0.08%
Interpublic Group of Companies, Inc....... 300 $ 18,395
---------- ------------
Aerospace - 2.03%
AlliedSignal Inc.......................... 900 75,600
Boeing Company............................ 2,400 127,350
General Dynamics Corporation.............. 200 15,000
Lockheed Martin Corporation............... 600 62,138
McDonnell Douglas Corporation............. 700 47,950
Northrop Grumman Corporation.............. 200 17,563
Textron, Inc.............................. 600 39,825
United Technologies Corporation........... 800 66,400
---------- ------------
6,400 451,826
---------- ------------
Airlines - 0.29%
AMR Corporation*.......................... 300 27,750
Delta Air Lines, Inc...................... 200 16,400
Southwest Airlines Company................ 500 12,937
USAirways Group, Inc.*.................... 200 7,000
---------- ------------
1,200 64,087
---------- ------------
Apparel, Textiles, Shoes - 0.42%
Fruit of the Loom Inc.*................... 300 9,300
Liz Claiborne Inc......................... 200 9,325
NIKE, Inc., Class B....................... 900 52,537
Reebok International, Inc................. 100 4,675
VF Corporation............................ 200 16,950
---------- ------------
1,700 92,787
---------- ------------
Automobiles - 1.60%
Chrysler Corporation...................... 2,200 72,187
Ford Motor Company........................ 3,800 143,450
General Motors Corporation................ 2,400 133,650
Navistar International Corporation*....... 300 5,175
---------- ------------
8,700 354,462
---------- ------------
Automobile Parts & Equipment - 0.44%
AutoZone, Inc.*........................... 400 9,425
Cummins Engine, Inc....................... 100 7,056
Dana Corporation.......................... 300 11,400
Echlin Inc................................ 200 7,200
Genuine Parts Company..................... 600 20,325
Johnson Controls Inc...................... 300 12,319
Pep Boys-Manny, Moe & Jack................ 200 6,812
TRW Inc................................... 400 22,725
---------- ------------
2,500 97,262
---------- ------------
Banks - 8.14%
Banc One Corporation...................... 1,300 62,969
Bank of New York Inc...................... 1,300 56,550
BankAmerica Corporation................... 2,200 142,037
BankBoston Corporation.................... 500 36,031
Bankers Trust, New York Corporation....... 200 17,400
Barnett Banks Inc......................... 600 31,500
Chase Manhattan Corporation............... 1,400 135,887
Citicorp.................................. 1,500 180,844
Comerica Inc.............................. 300 20,400
CoreStates Financial Corporation.......... 800 43,000
Fifth Third Bancorporation................ 300 24,619
First Bank System Inc..................... 500 42,688
First Chicago Corporation................. 1,000 60,500
First Union Corporation................... 900 83,250
Fleet Financial Group Inc................. 800 50,600
Great Western Financial Corporation....... 400 21,500
KeyCorp (New)............................. 700 39,113
MBNA Corporation.......................... 1,100 40,288
Mellon Bank Corporation................... 1,000 45,125
Morgan Stanley, Dean Witter, Discover &
Company.................................. 1,825 78,589
Morgan (J.P.) & Company, Inc.............. 600 62,625
National City Corporation................. 700 36,750
NationsBank Corporation................... 2,500 161,250
Norwest Corporation....................... 1,100 61,875
PNC Bank Corporation...................... 1,500 62,438
Republic New York Corporation............. 200 21,500
SunTrust Banks Inc........................ 800 44,050
U.S. Bancorp.............................. 500 32,062
Wachovia Corporation...................... 500 29,156
Wells Fargo & Company..................... 300 80,850
---------- ------------
27,325 1,805,446
---------- ------------
Broadcasting - 0.03%
Meredith Corporation...................... 200 5,800
---------- ------------
Building Materials - 0.68%
Centex Corporation........................ 100 4,062
Crane Company............................. 200 8,362
Fleetwood Enterprises..................... 100 2,981
Home Depot Inc............................ 1,500 103,406
Kaufman & Broad Home Corporation.......... 100 1,756
Masco Corporation......................... 500 20,875
Pall Corporation.......................... 400 9,300
---------- ------------
2,900 150,742
---------- ------------
Business Equipment and Supplies - 1.93%
Avery Dennison Corporation................ 400 16,050
Ikon Office Solutions..................... 400 9,975
International Business Machines
Corporation.............................. 3,200 288,600
Pitney Bowes Inc.......................... 500 34,750
Xerox Corporation......................... 1,000 78,875
---------- ------------
5,500 428,250
---------- ------------
Business Services - 0.32%
CUC International Inc.*................... 1,300 33,231
Deluxe Corporation........................ 200 6,825
Federal Express Corporation*.............. 400 23,100
Harland (John H.) Company................. 100 2,281
Moore Corporation Ltd..................... 300 5,906
---------- ------------
2,300 71,343
---------- ------------
Chemicals and Plastics - 3.60%
Air Products & Chemicals Inc.............. 400 32,500
Dow Chemical Company...................... 800 69,700
duPont (E.I.) deNemours & Company......... 3,600 226,350
Eastman Chemical Company.................. 200 12,700
Ecolab Inc................................ 200 9,550
Engelhard Corporation..................... 500 10,469
FMC Corporation*.......................... 100 7,944
Grace (W.R.) & Company.................... 200 11,025
Great Lakes Chemical Corporation.......... 200 10,475
</TABLE>
6
<PAGE>
MML EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
<S> <C> <C>
Chemicals and Plastics (Continued)
Hercules, Inc............................. 300 $ 14,362
Kerr-McGee Corporation.................... 200 12,675
Mallinckrodt Group Inc.................... 300 11,400
Minnesota Mining & Manufacturing Company.. 1,300 132,600
Monsanto Company.......................... 1,900 81,819
Morton International Inc.................. 400 12,075
Nalco Chemical Company.................... 200 7,725
Praxair Inc............................... 500 28,000
Raychem Corporation....................... 100 7,438
Rockwell International Corporation........ 700 41,300
Rohm & Haas Company....................... 200 18,013
Sigma-Aldrich Corporation................. 300 10,519
Union Camp Corporation.................... 200 10,000
Union Carbide Corporation................. 400 18,825
---------- ------------
13,200 797,464
---------- ------------
Coal - 0.27%
CSX Corporation........................... 700 38,850
Eastern Enterprises....................... 100 3,481
Fluor Corporation......................... 300 16,556
---------- ------------
1,100 58,887
---------- ------------
Communication Equipment - 1.70%
Cabletron Systems, Inc.*.................. 500 14,156
GTE Corporation........................... 3,000 131,625
Harris Corporation........................ 100 8,400
Motorola, Inc............................. 1,900 144,400
National Semiconductor Corporation*....... 400 12,250
Scientific-Atlanta Inc.................... 200 4,375
Tellabs, Inc.*............................ 1,100 61,463
---------- ------------
7,200 376,669
---------- ------------
Computer Hardware, Software or Services - 7.33%
Advanced Micro Devices Inc.*.............. 400 14,400
Amdahl Corporation*....................... 300 2,644
AMP Inc................................... 700 29,225
Apple Computer Inc........................ 400 5,700
Autodesk, Inc............................. 200 7,662
Automatic Data Processing Inc............. 900 42,300
Bay Networks, Inc......................... 600 15,937
Ceridian Corporation*..................... 200 8,450
CISCO Systems Inc.*....................... 2,100 140,962
Compaq Computer Corporation*.............. 800 79,400
Computer Associates International Inc..... 1,100 61,256
Computer Sciences Corporation*............ 200 14,425
Data General Corporation*................. 100 2,600
Dell Computer Corporation*................ 600 70,462
Digital Equipment Corporation*............ 500 17,719
Honeywell, Inc............................ 400 30,350
Intel Corporation......................... 2,600 368,713
Intergraph Corporation*................... 100 850
Microsoft Corporation*.................... 3,900 492,863
Novell Inc.*.............................. 1,100 7,631
Oracle Systems Corporation*............... 2,200 110,825
Parametric Technology Corporation*........ 400 17,025
Seagate Technologies Inc.*................ 800 28,150
Sun Microsystems Inc.*.................... 1,200 44,663
Tandem Computers Inc.*.................... 400 8,100
Unisys Corporation*....................... 500 3,812
---------- ------------
22,700 1,626,124
---------- ------------
Computer - Semiconductors - 0.33%
Applied Materials*........................ 600 42,487
EMC Corporation........................... 800 31,200
---------- ------------
1,400 73,687
---------- ------------
Consumer Non-Durables - 3.68%
Corning Inc............................... 1,000 55,625
General Electric Corporation.............. 10,600 692,975
Grainger (W.W.), Inc...................... 200 15,638
Lowe's Companies Inc...................... 600 22,275
Newell Company............................ 500 19,813
Whitman Corporation....................... 400 10,125
---------- ------------
13,300 816,451
---------- ------------
Consumer Services - 0.19%
Block (H & R) Inc......................... 300 9,675
Manor Care Inc............................ 200 6,525
Service Corporation International......... 800 26,300
---------- ------------
1,300 42,500
---------- ------------
Consumer Staples - 0.07%
Pioneer Hi-Bred International Inc......... 200 16,000
---------- ------------
Containers - 0.11%
Ball Corporation.......................... 100 3,006
Crown Cork & Seal Company Inc.*........... 400 21,375
---------- ------------
500 24,381
---------- ------------
Cosmetics-Toiletry - 0.18%
Alberto-Culver Company, Class B........... 200 5,600
Avon Products Inc......................... 500 35,281
---------- ------------
700 40,881
---------- ------------
Diversified - 1.13%
Aeroquip-Vickers, Inc..................... 100 4,725
Cognizant Corporation*.................... 500 20,250
Fortune Brands, Inc....................... 500 18,656
Loews Corporation......................... 300 30,038
Raytheon Company.......................... 700 35,700
Tyco International Ltd.................... 500 34,781
Unilever N.V.............................. 500 107,031
---------- ------------
3,100 251,181
---------- ------------
Electrical Equipment - 1.30%
Cooper Industries Inc..................... 300 14,925
Foster Wheeler Corporation................ 100 4,050
General Instrument Corporation............ 500 12,500
General Signal Corporation................ 100 4,362
Hewlett-Packard Company................... 3,300 184,800
Tektronix Inc............................. 100 6,000
Texas Instruments Inc..................... 600 50,438
Thomas & Betts Corporation................ 200 10,513
---------- ------------
5,200 287,588
---------- ------------
Electronics - 0.71%
Eaton Corporation......................... 200 17,462
EG&G Inc.................................. 200 4,500
Emerson Electric Company.................. 1,400 77,088
Tandy Corporation......................... 200 11,200
Westinghouse Electric Corporation......... 2,000 46,250
---------- ------------
4,000 156,500
---------- ------------
</TABLE>
7
<PAGE>
MML EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
<S> <C> <C>
Energy and Resources - 0.18%
Burlington Resources, Inc................. 400 $ 17,650
Dresser Industries Inc.................... 600 22,350
---------- ------------
1,000 40,000
---------- ------------
Entertainment - 1.60%
Brunswick Corporation..................... 300 9,375
Disney (Walt) Company..................... 2,100 168,525
Harcourt General Corporation.............. 300 14,362
Hasbro Inc................................ 400 11,350
ITT Corporation (New)*.................... 400 24,425
King World Productions, Inc.*............. 100 3,500
Mattel, Inc............................... 900 30,488
Time Warner Inc........................... 1,900 91,675
---------- ------------
6,400 353,700
---------- ------------
Environmental Control - 0.02%
Safety-Kleen Corporation.................. 200 3,375
---------- ------------
Financial Services - 3.61%
American Express Company.................. 1,500 111,750
American General Corporation.............. 710 33,902
Beneficial Corporation.................... 200 14,213
Countrywide Credit Industries............. 400 12,475
Dow Jones & Company Inc................... 300 12,056
Equifax, Inc.............................. 400 14,875
Federal Home Loan Mortgage Corporation.... 2,300 79,063
Federal National Mortgage Association..... 3,500 152,688
First Data Corporation.................... 1,500 65,906
Green Tree Financial Corporation.......... 500 17,813
Household International, Inc.............. 300 35,231
Merrill Lynch & Company Inc............... 1,000 59,625
Pulte Corporation......................... 100 3,456
Salomon Inc............................... 400 22,250
Schwab (Charles) Corporation.............. 700 28,481
Temple-Inland Inc......................... 200 10,800
Travelers Group Inc....................... 2,000 126,125
---------- ------------
16,010 800,709
---------- ------------
Food and Beverages - 7.74%
Albertson's, Inc.......................... 800 29,200
Anheuser-Busch Companies Inc.............. 1,600 67,100
Campbell Soup Company..................... 1,500 75,000
Coca-Cola Company......................... 7,900 551,025
ConAgra Inc............................... 700 44,887
Coors (Adolph) Company, Class B........... 100 2,662
CPC International Inc..................... 500 46,156
Fleming Companies Inc..................... 100 1,800
Heinz (H.J.) Company...................... 1,200 55,350
Hershey Foods Corporation................. 500 27,656
Kellogg Company........................... 700 59,938
PepsiCo Inc............................... 4,900 184,056
Philip Morris Companies Inc............... 7,800 346,125
Quaker Oats Company....................... 700 31,413
Ralston-Purina Group...................... 300 24,656
Sara Lee Corporation...................... 2,000 83,250
Seagram Company Ltd....................... 1,200 48,300
UST Inc................................... 600 16,650
Wrigley (Wm) Jr. Company.................. 300 20,100
---------- ------------
33,400 1,715,324
---------- ------------
Food Distribution - 0.79%
Archer-Daniels-Midland Company............ 1,800 42,300
Costco Companies Inc.*.................... 700 23,013
General Mills Inc......................... 500 32,562
Giant Food, Inc., Class A................. 200 6,525
Great Atlantic & Pacific Tea Company Inc.. 100 2,719
Kroger Company*........................... 800 23,200
Supervalu Inc............................. 200 6,900
Sysco Corporation......................... 500 18,250
Winn Dixie Stores Inc..................... 500 18,625
---------- ------------
5,300 174,094
---------- ------------
Freight and Shipping - 0.03%
Caliber Systems Inc....................... 200 7,450
---------- ------------
Glass Products - 0.20%
Owens Corning Fiberglass Corporation*..... 200 8,625
PPG Industries Inc........................ 600 34,875
---------- ------------
800 43,500
---------- ------------
Health Care Facilities - 0.58%
Beverly Enterprises*...................... 300 4,875
Columbia/HCA Healthcare Corporation....... 2,100 82,556
Humana Inc.*.............................. 500 11,563
Tenet Healthcare Corporation*............. 1,000 29,563
---------- ------------
3,900 128,557
---------- ------------
Health Care Products - 3.84%
Abbott Laboratories....................... 2,400 160,200
Allergan, Inc............................. 200 6,362
Bausch & Lomb Inc......................... 200 9,425
Becton, Dickinson & Company............... 400 20,250
Merck & Company Inc....................... 3,900 403,650
Pfizer, Inc............................... 2,100 250,950
---------- ------------
9,200 850,837
---------- ------------
Holding Companies - 0.13%
Providian, LLC............................ 300 9,638
Public Service Enterprise................. 800 20,000
---------- ------------
1,100 29,638
---------- ------------
Home Appliances - 0.40%
Black & Decker Corporation................ 300 11,156
Illinois Tool Works Inc................... 800 39,950
Maytag Corporation........................ 300 7,838
Snap-On, Inc.............................. 200 7,875
Stanley Works............................. 300 12,000
Whirlpool Corporation..................... 200 10,912
---------- ------------
2,100 89,731
---------- ------------
Home Furnishings and Housewares - 0.87%
American Home Products Corporation........ 2,000 153,000
Armstrong World........................... 100 7,338
Rubbermaid, Inc........................... 500 14,875
Springs Industries, Inc................... 200 10,550
Tupperware Corporation.................... 200 7,300
---------- ------------
3,000 193,063
---------- ------------
</TABLE>
8
<PAGE>
MML EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
<S>......................................... <C> <C>
Hotels and Restaurants - 0.90%
Darden Restaurants Inc.................... 500 $ 4,531
Harrah's Entertainment Corporation........ 300 5,475
HFS, Inc.*................................ 400 23,200
Hilton Hotels Corporation................. 800 21,250
Marriott International Inc................ 400 24,550
McDonald's Corporation.................... 2,300 111,119
Wendy's International Inc................. 400 10,375
---------- ------------
5,100 200,500
---------- ------------
Insurance - 3.82%
Aegon N.V................................. 0 23
Aetna Life & Casualty Company............. 500 51,187
Allstate Corporation...................... 1,500 109,500
American International Group, Inc......... 1,500 224,062
AON Corporation........................... 600 31,050
Chubb Corporation......................... 600 40,125
CIGNA Corporation......................... 300 53,250
Conseco, Inc.............................. 500 18,500
General Re Corporation.................... 200 36,400
Hartford Financial Services Group, Inc.... 400 33,100
Jefferson-Pilot Corporation............... 200 13,975
Lincoln National Corporation.............. 400 25,750
Marsh & McLennan Companies, Inc........... 600 42,825
MBIA Inc.................................. 200 22,562
MGIC Investment Corporation............... 400 19,175
SAFECO Corporation........................ 400 18,675
St. Paul Companies Inc.................... 200 15,250
Torchmark Corporation..................... 200 14,250
Transamerica Corporation.................. 200 18,712
United Healthcare Corporation............. 600 31,200
UNUM Corporation.......................... 400 16,800
USF & G Corporation....................... 400 9,600
---------- ------------
10,300 845,971
---------- ------------
Machinery and Heavy Equipment - 0.78%
Caterpillar Inc........................... 600 64,425
Cincinnati Milacron Inc................... 100 2,594
Deere & Company........................... 800 43,900
Dover Corporation......................... 400 24,600
Ingersoll-Rand Company.................... 400 24,700
Parker-Hannifin Corporation............... 200 12,138
---------- ------------
2,500 172,357
---------- ------------
Manufacturing - 1.37%
Alcan Aluminum Ltd........................ 700 24,281
Aluminum Company of America............... 600 45,225
Boston Scientific Corporation*............ 700 43,006
Briggs & Stratton Corporation............. 100 5,000
Brown-Forman Corporation, Class B......... 200 9,763
Case Corporation.......................... 300 20,662
Giddings & Lewis, Inc..................... 100 2,088
LSI Logic Corporation*.................... 500 16,000
Micron Technology Inc..................... 700 27,956
PACCAR Inc................................ 200 9,287
Reynolds Metals Company................... 200 14,250
Sherwin-Williams Company.................. 600 18,525
Silicon Graphics Inc.*.................... 600 9,000
Thermo Electron Corporation............... 400 13,600
3COM Corporation*......................... 1,000 45,000
---------- ------------
6,900 303,643
---------- ------------
Medical Instruments, Services and Supplies - 0.97%
Bard (C.R.), Inc.......................... 200 7,262
Baxter International Inc.................. 900 47,025
Biomet, Inc.*............................. 300 5,588
Cardinal Health, Inc...................... 300 17,175
Guidant Corporation....................... 300 25,500
HEALTHSOUTH Corporation................... 1,100 27,431
Medtronic, Inc............................ 700 56,700
Shared Medical Systems Corporation........ 100 5,400
St. Jude Medical, Inc.*................... 300 11,700
United States Surgical Corporation........ 300 11,175
---------- ------------
4,500 214,956
---------- ------------
Metals and Mining - 0.70%
Allegheny Teledyne, Inc.*................. 600 16,200
ASARCO Inc................................ 100 3,063
Barrick Gold Corporation.................. 1,100 24,200
Battle Mountain Gold Company.............. 700 3,981
Cyprus Amax Minerals Company.............. 300 7,350
Echo Bay Mines Ltd........................ 400 2,300
Freeport McMoRan Copper & Gold, Class B... 600 18,675
Homestake Mining Company.................. 500 6,531
Inco Ltd.................................. 600 18,037
Newmont Mining Corporation................ 472 18,408
Phelps Dodge Corporation.................. 300 25,556
Placer Dome, Inc.......................... 700 11,462
---------- ------------
6,372 155,763
---------- ------------
Miscellaneous - 0.48%
S & P Depositary Receipt.................. 1,200 105,975
---------- ------------
Natural Gas - 0.49%
Columbia Gas System, Inc.................. 200 13,050
Consolidated Natural Gas Company.......... 300 16,144
Enron Corporation......................... 900 36,731
ENSERCH Corporation....................... 200 4,450
NICOR Inc................................. 100 3,588
Noram Energy Corporation.................. 400 6,100
ONEOK Inc................................. 100 3,219
Pacific Enterprises Inc................... 300 10,088
Sonat, Inc................................ 300 15,375
---------- ------------
2,800 108,745
---------- ------------
News and Publishing - 0.92%
Gannett Company Inc....................... 500 49,375
Kimberly-Clark Corporation................ 1,800 89,550
Knight-Ridder Inc......................... 300 14,719
New York Times Company, Class A........... 300 14,850
Times Mirror Company (New), Class A....... 300 16,575
Tribune Company........................... 400 19,225
---------- ------------
3,600 204,294
---------- ------------
Oil - 8.32%
Amerada Hess Corporation.................. 300 16,669
Amoco Corporation......................... 1,600 139,100
Ashland, Inc.............................. 200 9,275
Atlantic Richfield Company................ 1,000 70,500
Baker Hughes Inc.......................... 500 19,344
Chevron Corporation....................... 2,000 147,875
Coastal Corporation....................... 300 15,956
</TABLE>
9
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
<S> <C> <C>
EQUITIES (Continued)
Oil (Continued)
Exxon Corporation.................................. 7,900 $ 485,850
Halliburton Company................................ 400 31,700
Louisiana Land & Exploration Company............... 100 5,713
McDermott International, Inc....................... 200 5,838
Mobil Corporation.................................. 2,600 181,675
Occidental Petroleum Corporation................... 1,100 27,569
Oryx Energy Company*............................... 400 8,450
Pennzoil Company................................... 100 7,675
Phillips Petroleum Company......................... 900 39,375
Royal Dutch Petroleum Company...................... 6,800 369,750
Santa Fe Energy Resources, Inc.*................... 300 4,406
Tenneco Inc........................................ 500 22,594
Texaco Inc......................................... 800 87,000
Union Pacific Corporation.......................... 800 56,400
Union Pacific Resources Group...................... 800 19,900
Unocal Corporation................................. 1,200 46,575
USX-Marathon Group Common (New).................... 900 25,988
-------- ------------
31,700 1,845,177
-------- ------------
Oil Equipment and Services - 0.57%
Helmerich & Payne, Inc............................. 200 11,525
Schlumberger Ltd................................... 800 100,000
Western Atlas, Inc. *.............................. 200 14,650
-------- ------------
1,200 126,175
-------- ------------
Paper and Forest Products - 0.86%
Bemis Company Inc.................................. 200 8,675
Boise Cascade Corporation.......................... 200 7,063
Champion International Corporation................. 300 16,575
Georgia-Pacific Corporation........................ 300 25,613
Harnischfeger Industries Inc....................... 100 4,150
International Paper Company........................ 1,000 48,563
James River Corporation of Virginia................ 300 11,100
Louisiana Pacific Corporation...................... 300 6,337
Mead Corporation................................... 100 6,225
Potlatch Corporation............................... 100 4,525
Stone Container Corporation........................ 400 5,725
Weyerhaeuser Company............................... 600 31,200
Willamette Industries Inc.......................... 200 14,000
-------- ------------
4,100 189,751
-------- ------------
Personal Items - 3.00%
Colgate-Palmolive Company.......................... 800 52,200
Gillette Company................................... 1,800 170,550
International Flavors & Fragrances, Inc............ 300 15,150
Jostens Inc........................................ 200 5,350
Proctor & Gamble Company........................... 2,200 310,750
Warner-Lambert Company............................. 900 111,825
-------- ------------
6,200 665,825
-------- ------------
Petroleum Refining - 0.18%
Rowan Companies.................................... 300 8,456
Sun Company........................................ 300 9,300
Williams Companies Inc............................. 500 21,875
-------- ------------
1,100 39,631
-------- ------------
Pharmaceuticals - 4.19%
ALZA Corporation*.................................. 300 $ 8,681
Bristol-Myers Squibb Company....................... 3,500 283,500
Johnson & Johnson.................................. 4,300 276,812
Lilly (Eli) & Company.............................. 1,700 185,831
Pharmacia & Upjohn Inc.*........................... 1,700 59,075
Schering-Plough Corporation........................ 2,400 114,900
-------- ------------
13,900 928,799
-------- ------------
Photographic Equipment and Supplies - 0.43%
Eastman Kodak Company.............................. 1,100 84,425
Polaroid Corporation............................... 200 11,100
-------- ------------
1,300 95,525
-------- ------------
Printing and Publishing - 0.30%
American Greetings Corporation, Class A............ 200 7,425
Donnelly (RR) & Sons Company....................... 500 18,313
Dun & Bradstreet Corporation....................... 500 13,125
McGraw-Hill Inc.................................... 300 17,644
Westvaco Corporation............................... 300 9,431
-------- ------------
1,800 65,938
-------- ------------
Railroads - 0.18%
Norfolk Southern Corporation....................... 400 40,300
Research and Development - 0.21%
Amgen Inc.*........................................ 800 46,500
Retail - Store - 3.36%
American Stores Company............................ 400 19,750
Charming Shoppes Inc............................... 400 2,088
Circuit City Stores Inc. - Circuit City............ 400 14,225
CVS Corporation.................................... 300 15,375
Dayton Hudson Corporation.......................... 700 37,231
Dillard's Inc., Class A............................ 400 13,850
Federated Department Store *....................... 600 20,850
Gap Inc............................................ 900 34,988
K mart Corporation................................. 1,500 18,375
Limited Inc........................................ 900 18,225
Longs Drug Stores Company.......................... 100 2,619
May Department Stores Company...................... 800 37,800
Mercantile Stores Company.......................... 200 12,588
Nordstrom, Inc..................................... 200 9,813
Penney (J.C.) Company Inc.......................... 800 41,750
Rite Aid Corporation............................... 400 19,950
Russell Corporation................................ 100 2,963
Sears, Roebuck & Company........................... 1,300 69,875
Stride Rite Corporation............................ 200 2,575
TJX Companies, Inc................................. 400 10,550
Toys R Us Inc.*.................................... 1,000 35,000
Walgreen Company................................... 800 42,900
Wal-Mart Stores, Inc............................... 7,400 250,213
Woolworth Corporation.............................. 500 12,000
-------- ------------
20,700 745,553
-------- ------------
Savings and Loan Associations - 0.11%
Ahmanson (H.F.) Company............................ 400 17,200
Golden West Financial Corporation.................. 100 7,000
-------- ------------
500 24,200
-------- ------------
</TABLE>
10
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
<S> <C> <C>
EQUITIES (Continued)
Soaps and Detergents - 0.12%
Clorox Company..................................... 200 $ 26,400
-------- ------------
Steel - 0.21%
Armco Inc.*........................................ 400 1,550
Bethlehem Steel Corporation*....................... 400 4,175
Inland Steel Industries Inc........................ 200 5,225
Nucor Corporation.................................. 300 16,950
Timken Company..................................... 200 7,112
USX-U.S. Steel Group Inc........................... 200 7,013
Worthington Industries, Inc........................ 300 5,494
-------- ------------
2,000 47,519
-------- ------------
Technology - 0.67%
Ameritech Corporation.............................. 1,800 122,287
ITT Industries*.................................... 400 10,300
Millipore Corporation.............................. 200 8,800
Perkin-Elmer Corporation........................... 100 7,956
-------- ------------
2,500 149,343
-------- ------------
Telecommunications - 6.61%
AirTouch Communications, Inc.*..................... 1,600 43,800
ALLTEL Corporation................................. 600 20,062
Andrew Corporation*................................ 300 8,437
AT&T Corporation................................... 5,600 196,350
Bell Atlantic Corporation.......................... 1,400 106,225
BellSouth Corporation.............................. 3,200 148,400
Comcast Corporation, Special Class A
(non-voting)...................................... 1,000 21,375
DSC Communications Corporation*.................... 300 6,675
Frontier Corporation............................... 600 11,963
Lucent Technologies, Inc........................... 2,100 151,331
MCI Communications Corporation..................... 2,200 84,219
Northern Telecommunications Ltd.................... 800 72,800
NYNEX Corporation.................................. 1,400 80,675
SBC Communications................................. 3,000 185,625
Sprint Corporation................................. 1,400 73,675
Tele-Communications Inc., Class A*................. 2,100 31,237
US West, Inc....................................... 1,500 56,531
US West Media, Inc.*............................... 2,000 40,500
Viacom Inc., Class B*.............................. 1,200 36,000
WorldCom, Inc...................................... 2,800 89,600
-------- ------------
35,100 1,465,480
-------- ------------
Tire and Rubber - 0.21%
Cooper Tire & Rubber Company....................... 300 6,600
Goodrich (B.F.) Company............................ 200 8,662
Goodyear Tire & Rubber Company..................... 500 31,656
-------- ------------
1,000 46,918
-------- ------------
Transportation - 0.25%
Burlington Northern Santa Fe....................... 500 44,938
Ryder System, Inc.................................. 300 9,900
-------- ------------
800 54,838
-------- ------------
Utilities - 2.35%
American Electric Power Company, Inc............... 600 25,200
Baltimore Gas & Electric Company................... 400 10,675
Carolina Power & Light Company..................... 500 17,937
Central & Southwest Corporation.................... 600 12,750
Cinergy Corporation................................ 500 17,406
Consolidated Edison Company........................ 700 20,606
Dominion Resources, Inc............................ 600 21,975
DTE Energy Company................................. 500 13,813
Duke Energy Company................................ 1,122 53,795
Edison International............................... 1,400 34,825
Entergy Corporation................................ 700 19,163
FPL Group, Inc..................................... 500 23,031
GPU, Inc........................................... 400 14,350
Houston Industries, Inc............................ 1,200 25,725
National Service Industries, Inc................... 100 4,869
Niagara Mohawk Power Corporation................... 500 4,281
Northern States Power Company...................... 200 10,350
Ohio Edison Company................................ 500 10,906
PacifiCorp......................................... 900 19,800
PECO Energy Company................................ 700 14,700
Peoples Energy Corporation......................... 100 3,744
PG & E Corporation................................. 1,300 31,525
PP & L Resources Inc............................... 500 9,969
Southern Company................................... 2,200 48,125
Texas Utilities Company............................ 700 24,106
Unicom Corporation................................. 700 15,575
Union Electric Company............................. 300 11,306
-------- ------------
18,422 520,507
-------- ------------
Waste Management - 0.65%
Browning-Ferris Industries, Inc.................... 700 23,275
Laidlaw Inc., Class B (non-voting)................. 1,000 13,813
Waste Management, Inc.............................. 3,300 106,013
-------- ------------
5,000 143,101
-------- ------------
Total Equities
(Cost $20,016,581).................................. 22,118,375
------------
SHORT-TERM INVESTMENTS 0.22%
(Cost $48,674)
Dreyfus Cash Management Fund, Class A 48,674 48,674
-------- ------------
<CAPTION>
<S> <C> <C>
Total Investments
(Cost $20,065,255) (a) 99.98% $ 22,167,049
======= ============
(a) Federal Income Tax Information: At June 30, 1997
the net unrealized appreciation on investments
based on cost of cost of $20,065,255 for fed
income tax purposes is as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of
market value over tax cost ...................... $ 2,228,607
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over market value .......................... (126,813)
--------------
Net unrealized appreciation ..................... $ 2,101,794
==============
</TABLE>
* Non-income producing security.
See Notes To Financial Statements.
11
<PAGE>
Notes To Financial Statements
(Unaudited)
1. HISTORY
MML Equity Index Fund ("the Fund") is a non-diversified series of MML Series
Investment Fund ("MML Trust"), a no load, open-end, management investment
company registered as such under the Investment Company Act of 1940. MML Trust,
which has five separate series of shares, was organized as a business trust
under the laws of the Commonwealth of Massachusetts pursuant to an Agreement and
Declaration of the Trust.
MML Trust was established by Massachusetts Mutual Life Insurance Company
("MassMutual") for the purposes of providing vehicles for the investment of
assets of various separate investment accounts established by MassMutual and by
the life insurance companies which are subsidiaries of MassMutual. Shares of MML
Trust are not offered to the general public.
Information presented in these financial statements pertains only to the Fund.
Information for the other series of MML Trust are presented under a separate
cover.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in preparation of its financial statements in conformity
with generally accepted accounting principles.
A. Investment Valuation
Generally, the Fund values its Portfolio's securities at market value or,
in the absence of market value with respect to any portfolio security, at
fair value as determined by, or under the direction of, the Board of
Trustees of MML Trust ("the Board"). Portfolio securities are valued on
the basis of valuations furnished by a pricing service, authorized by the
Board, which provides the last reported sale price for securities listed
on a national securities exchange, or on the NASDAQ national market
system. If securities are unlisted or there is no reported sales price,
the bid price of the prior trade date will be used. Short-term debt
obligations with less than one year, but more than sixty days to maturity
from the date of purchase are valued on the basis of their market value.
Debt obligations with sixty days or less to maturity from the date of
purchase are generally valued at amortized cost when the Board believes
amortized cost approximates market value. Futures contracts are valued
based on market prices unless such prices do not reflect fair value of the
contract, in which case they will be valued by or under the direction of
the Board.
B. Accounting For Investments
Investment transactions are accounted for on trade date. Dividend income
is recorded on ex-dividend date. Interest income is recorded on the
accrual basis.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and federal income tax purposes on the identified cost method.
C. Dividends and Distributions
Dividends of net investment income and distributions of capital gains are
declared and paid annually or as approved by the Board to avoid the
application of a 4% non-deductible excise tax on certain undistributed
amounts of ordinary income and capital gains. Income distributions and
capital gains distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income, gains and losses and differing characterizations of distributions
made by the Fund. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. Accordingly,
the Fund may periodically make reclassifications among certain of their
capital accounts without impacting the net asset value of the Fund.
D. Federal Income Tax
The MML Trust has established a policy for the Fund to comply with the
provisions of the Internal Revenue Code of 1986, as amended, applicable to
regulated investment companies. As a result, the Fund will not be subject
to federal income tax on any net investment income and any capital gains
to the extent they are distributed or are deemed to have been distributed
to shareholders.
12
<PAGE>
Notes To Financial Statements (Continued)
E. Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
3. INVESTMENT MANAGEMENT FEE
MassMutual serves as investment adviser to the Fund pursuant to an investment
management agreement (the "Investment Management Agreement"). For acting as
such, MassMutual receives a quarterly fee at the annual rate of .40% of the
first $100,000,000 of the average daily net asset value of the Fund, .38% of the
next $150,000,000 and .36% of any excess over $250,000,000. MassMutual has
agreed to bear expenses of the Fund (other than the management fee, interest,
taxes any required trademark licensing fees, custodial fees, brokerage
commissions and extraordinary expenses) in excess of .11% of average daily net
asset value of the Fund through April 30, 1998. MassMutual also acts as transfer
agent and dividend paying agent.
4. PURCHASE AND SALES OF INVESTMENTS
<TABLE>
<CAPTION>
Proceeds
For the Period Ended Acquisition from Sales
June 30, 1997* Cost and Maturities
-------------- ------------- --------------
<S> <C> <C>
Equities....................................................................... $ 20,074,305 $ 57,845
Short-term Investments......................................................... 20,364,003 20,324,165
</TABLE>
* The Fund commenced operations on May 1, 1997.
5. NET INCREASE FROM CAPITAL SHARE TRANSACTIONS
The Trust is authorized to issue an unlimited number of shares of beneficial
interest to the Fund at $0.01 par value. Changes in shares of beneficial
interest are as follows:
<TABLE>
<CAPTION>
For the period Ended
June 30, 1997*
--------------
<S> <C>
Shares
Sales of shares.............................................................. 2,001,143
-------------
Net Increase................................................................. 2,001,143
=============
Amount
Sales of shares.............................................................. $ 20,011,406
-------------
Net Increase................................................................. $ 20,011,406
=============
</TABLE>
* The Fund commenced operations on May 1, 1997.
6. INVESTMENT RISK AND CONSIDERATION
Since the fund is non-diversified and a relatively high percentage of the Fund's
assets may be invested in the securities of a limited number of issuers, some of
which may be in the same economic sector, the Fund's portfolio may be more
sensitive to changes in market value of a single issuer or industry.
13
