<PAGE>
MML Equity Index Fund
To Our Shareholders
The U.S. Economy Continues to Expand
We are now eight years into the current U.S. economic expansion, and judging
from continued strong performance in the first half of 1998, this should be
another year of impressive economic growth. A combination of forces shaped the
first half: strong economic fundamentals, favorable price performance, a
dramatically improved landscape for the nation's budget (now anticipating a
surplus of $80 billion or more for fiscal year 1998), the Federal Reserve's
steady hold on monetary policy, a competitive wage and price environment, and
the economic and financial crisis in Southeast Asia.
Increased spending for consumption, housing and producers' durable equipment
drove expansion in the first six months of the year. Households spent more,
encouraged by low unemployment and growth in personal income. Business
inventories also rose sharply early in the year, contributing to the economy's
growth in the first quarter. Inventory growth has since slowed significantly and
detracted from economic gains in the second quarter. The only other drag on
performance was flat net exports, almost certainly a backlash of the Asian
crisis.
Amidst Troubles in Asia
The economic and financial problems that have plagued Southeast Asia for the
past year have continued to make for volatile and uncertain times in the U.S.
and global financial markets. The key players in the Asian region are Japan and
China, both facing economic hardship and currency devaluation. Though Japan has
been working to restore its failed banking system, the nation faces the bigger
problem of stimulating its economy -- now with a budget deficit near 6 percent
of Gross Domestic Product. Clearly, Japan's financial woes are far from being
solved and, as such, the world's economies and markets will sit with a watchful
eye over the coming months.
Large Capitalization U.S. Stocks Soar
During the first six months of 1998, the U.S. stock market continued to make
great strides, with large capitalization stocks leading the pack. As of June 30,
1998, the S&P 500 was up 17.7 percent, versus the unmanaged small stock Russell
2000 Index which returned a modest 4.9 percent.
The `flight to quality' that the market has been experiencing since last year
has continued to benefit large cap growth stocks, while hindering the
performance of smaller, value-oriented stocks. As investors became more
concerned about deteriorating conditions in Asia and the possible impact on
commodity prices, competition and economic activity, they favored large-cap
stocks over small-cap stocks for their durability and liquidity.
Bond Returns Varied
The Treasury yield curve continued to flatten over the past six months, and as a
result, corporate bonds, mortgage-backed and asset-backed securities delivered
varied, and less impressive, returns than U.S. Treasuries.
Even as corporate spreads widened, low interest rates and investor cash flow
were positive for the corporate bond market. New issuance of investment-grade
corporate bonds was extremely high -- $197 billion in the first six months of
1998, compared to $272 billion issued in total for 1997.
Managing the Risks of Abroad
The same forces that drove the economy's growth in the first half of the year
will shape this year's outcome. However, the instability in Asia, which is far
from being resolved, is becoming more influential to the behavior of the U.S.
dollar, the economy and the financial markets. As the events in Asia unfold --
good or bad -- the domestic markets may experience increased levels of
volatility.
/s/ Stuart H. Reese
Stuart H. Resse
President
MML Series Investment Fund
July 31, 1998
1
<PAGE>
MML Equity Index Fund Portfolio Review*
For the six month period ended June 30, 1998, the portfolio realized a total
return of 17.63 percent,** while the Standard & Poor's 500 Stock Index had a
total return of 17.71 percent. The portfolio is designed to replicate the large
capitalization United States equity market as it is represented by the S&P 500
Index for the same period. Large capitalization equities have posted very strong
results for the year so far, outperforming both small and mid capitalization
stocks. For the six months ended June 30, 1998, some of the best performing
groups in the S&P 500 were communication equipment companies, apparel retailers,
auto companies and general retailers.
As a portfolio that mirrors the holdings of an existing stock index, we will
continue to make the appropriate changes in accordance with the portfolio's
investment objective.
* Standard & Poor's, "S&P", "Standard & Poor's 500", "S&P 500" and "500" are
trademarks of The McGraw-Hill Companies and have been licensed for use by the
Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard &
Poor's, a division of the McGraw-Hill Companies ("S&P"), or The McGraw-Hill
Companies, Inc. S&P makes no representation regarding the advisability of
investing in the Fund.
** These investment performance figures may be of limited use for comparative
purposes because they do not reflect charges imposed by the separate investment
accounts invested in the Funds which, if included, would decrease the
performance figures.
2
<PAGE>
MML Equity Index Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<S> <C>
ASSETS
Investments at value (See Schedule of Investments)
(Notes 2A, 2B, and 4)
Equities (Identified cost: $22,137,159) ........................................ $30,507,563
Short-term investments (Identified cost: $122,929) ............................. 122,929
-----------
Total investments .............................................................. 30,630,492
Cash ............................................................................ 1,529
Interest and dividends receivable ............................................... 32,511
Receivable from Investment Advisor .............................................. 29,698
-----------
Total assets ................................................................... 30,694,230
-----------
LIABILITIES
Payable for investment securities purchased ..................................... 17,040
Investment management fee payable (Note 3) ...................................... 116,999
Accrued trustees' fees .......................................................... 4,253
Accrued audit fees .............................................................. 2,846
-----------
Total liabilities .............................................................. 141,138
-----------
NET ASSETS ...................................................................... $30,553,092
===========
Net assets consist of:
Series shares (par value $.01 per share; an unlimited number authorized) (Note 5) $ 21,494
Additional paid-in capital ...................................................... 21,952,212
Undistributed net investment income (Note 2C and 2D) ............................ 156,027
Undistributed net realized gain on investments .................................. 52,955
Net unrealized appreciation on investments (Note 2A) ............................ 8,370,404
-----------
NET ASSETS ...................................................................... $30,553,092
===========
Outstanding series shares ....................................................... 2,149,430
===========
Net asset value per share ....................................................... $ 14.21
===========
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
MML Equity Index Fund
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1998
(Unaudited)
<S> <C>
Investment income (Note 2B)
Dividends (Net of foreign withholding tax of $100) ...................... $ 206,381
Interest ................................................................ 3,519
-----------
Total income ........................................................... 209,900
-----------
Expenses
Investment management fee (Note 3) ...................................... 55,239
Audit fees .............................................................. 14,775
Trustees' fees .......................................................... 13,792
-----------
Total expenses ......................................................... 83,806
Expenses reimbursed (Note 3) ............................................ (29,698)
-----------
Net expenses ........................................................... 54,108
-----------
Net investment income (Note 2C and 2D) .................................. 155,792
-----------
Net realized and unrealized gain on investments (Notes 2A, 2B, 2C and 2D)
Net realized gain on investments (Notes 2B, 2C, and 2D) ................. 53,008
Net unrealized appreciation on investments (Note 2A) .................... 4,198,842
-----------
Net realized and unrealized gain on investments ......................... 4,251,850
-----------
Net increase in net assets resulting from operations ................... $ 4,407,642
===========
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
MML Equity Index Fund
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six
Months Ended For the
June 30, 1998 Period Ended
(Unaudited) December 31, 1997*
------------ ------------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income .................................... $ 155,792 $ 184,598
Net realized gain on investments ......................... 53,008 41,673
Net change in unrealized appreciation on investments ..... 4,198,842 4,171,562
------------ ------------
Net increase in net assets resulting from operations ..... 4,407,642 4,397,833
Distributions to shareholders from:
Net investment income .................................. 0 (184,363)
Net realized gains on investments ...................... 0 (41,726)
Net increase in capital share transactions ............... 1,943,687 20,030,019
------------ ------------
Total increase ......................................... 6,351,329 24,201,763
NET ASSETS, at beginning of period ....................... 24,201,763 0
------------ ------------
NET ASSETS, at end of period ............................. $ 30,553,092 $ 24,201,763
============ ============
Undistributed net investment income included in net assets $ 156,027 $ 235
============ ============
</TABLE>
*The Fund commenced operations on May 1,1997
See Notes to Financial Statements
5
<PAGE>
MML Equity Index Fund
FINANCIAL HIGHLIGHTS
Selected per share data for a series shares outstanding throughout each period.
<TABLE>
<CAPTION>
For the Six
Months Ended For the
June 30, 1998 Period Ended
(Unaudited) December 31, 1997*
----------- ------------------
<S> <C> <C>
Net asset value:
Beginning of period ............................... $ 12.080 $ 10,000
----------- -----------
Income from investment operations:
Net investment income .............................. 0.072 0.092
Net realized and unrealized gain on investments .... 2.058 2,101
----------- -----------
Total from investment operations ................... 2.130 2.193
----------- -----------
Less Distributions:
Dividends from net investment income ............... 0.000 (0.092)
Distributions from realized gains .................. 0.000 (0.021)
----------- -----------
0.000 (0.113)
Net asset value:
End of period ..................................... $ 14.210 $ 12.080
=========== ===========
Total return *** ................................... 17.63% 21.39%
Net assets (in millions):
End of period ..................................... $ 30,553 $ 24,202
Ratio of operating expenses to average net assets
before reimbursement of expense by Adviser ........ 0.61% 0.43%**
after reimbursement of expense by Adviser ......... 0.40%
Ratio of net investment income to average net assets
before reimbursement of expense by Adviser ........ 0.92% 0.80%**
after reimbursement of expense by Adviser ......... 1.13%
Portfolio turnover rate ............................ 1% 2%
</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 tables does not
reflect expenses that apply at level or to related insurance products.
Inclusion of these charges would reduce the total return figures for the
period shown.
See Notes to financial statements.
6
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
-------- ---------
<S> <C> <C>
EQUITIES -- 99.85%
Advertising -- 0.19%
Interpublic Group of Companies, Inc. ............ 450 $ 27,309
Omnicom Group, Inc. ............................. 600 29,925
-------- --------
1,050 57,234
-------- --------
Aerospace -- 1.54%
AlliedSignal, Inc. .............................. 2,100 93,187
Boeing Company .................................. 3,310 147,502
General Dynamics Corporation .................... 400 18,600
Lockheed Martin Corporation ..................... 700 74,112
Northrop Corporation ............................ 200 20,625
Textron, Inc. ................................... 600 43,013
United Technologies Corporation ................. 800 74,000
-------- --------
8,110 471,039
-------- --------
Airlines -- 0.55%
AMR Corporation * ............................... 1,000 83,250
Delta Air Lines, Inc. ........................... 300 38,775
Southwest Airlines Company ...................... 750 22,219
US Airways Group, Inc.** ........................ 300 23,775
-------- --------
2,350 168,019
-------- --------
Apparel, Textiles, Shoes -- 0.29%
Fruit of the Loom, Inc.* ........................ 300 9,975
Liz Claiborne, Inc. ............................. 200 10,450
NIKE, Inc., Class B ............................. 900 43,819
Reebok International, Inc.* ..................... 100 2,769
VF Corporation .................................. 400 20,600
-------- --------
1,900 87,613
-------- --------
Automobiles -- 1.73%
Chrysler Corporation ............................ 2,200 124,025
Ford Motor Company .............................. 4,000 236,000
General Motors Corporation ...................... 2,400 160,350
Navistar International Corporation* ............. 300 8,662
-------- --------
8,900 529,037
-------- --------
Automobile Parts & Equipment -- 0.35%
AutoZone, Inc. * ................................ 400 12,775
Cummins Engine, Inc. ............................ 100 5,125
Dana Corporation ................................ 300 16,050
Echlin, Inc. .................................... 200 9,813
Genuine Parts Company ........................... 600 20,700
Johnson Controls Inc. ........................... 300 17,119
Pep Boys-Manny, Moe & Jack ...................... 200 3,787
TRW, Inc ........................................ 400 21,850
-------- --------
2,500 107,219
-------- --------
Banks -- 9.31%
Bane One Corporation ............................ 2,090 116,648
Bank of New York, Inc. .......................... 1,300 78,894
BankAmerica Corporation ......................... 2,400 207,450
BankBoston Corporation .......................... 1,000 55,625
Bankers Trust, New York Corporation ............. 500 58,031
BB&T Corporation ................................ 400 27,050
Chase Manhattan Corporation ..................... 3,200 241,600
Citicorp ........................................ 1,600 238,800
Comerica, Inc. .................................. 450 29,812
Fifth Third Bancorporation ...................... 675 42,525
First Chicago Corporation ....................... 1,000 88,625
First Union Corporation ......................... 3,496 203,642
Fleet Financial Group, Inc. ..................... 1,000 83,500
Huntington Bancshares ........................... 600 20,100
KeyCorp (New) ................................... 1,400 49,875
MBNA Corporation ................................ 1,650 54,450
Mellon Bank Corporation ......................... 800 55,700
Mercantile Bancorporation, Inc. ................. 400 20,150
Morgan Stanley, Dean Witter,
Discover & Company .............................. 2,025 185,034
Morgan (J.P) & Company, Inc. .................... 600 70,275
National City Corporation ....................... 1,000 71,000
NationsBank Corporation ......................... 3,212 245,718
Northen Trust Corporation ....................... 400 30,500
Norwest Corporation ............................. 2,500 93,438
PNC Bank Corporation ............................ 1,000 53,812
Republic New York Corporation ................... 400 25,175
State Street Corporation ........................ 500 34,750
Summit Bancorp .................................. 500 23,750
SunTrust Banks, Inc. ............................ 800 65,050
U.S. Bancorp .................................... 2,631 113,133
Wachovia Corporation ............................ 600 50,700
Wells Fargo & Company ........................... 300 110,700
---------- ----------
40,429 2,845,512
---------- ----------
Broadcasting -- 0.17%
Clear Channel Communications * .................. 400 43,650
Meredith Corporation ............................ 200 9,387
---------- ----------
600 53,037
---------- ----------
Building Materials -- 0.87%
Centex Corporation .............................. 200 7,550
Crane Company ................................... 200 9,713
Fleetwood Enterprises ........................... 100 4,000
Home Depot, Inc. ................................ 2,450 203,503
Kaufman & Broad Home Corporation ................ 100 3,175
Masco Corporation ............................... 500 30,250
Pall Corporation ................................ 400 8,200
---------- ----------
3,950 266,391
---------- ----------
Business Equipment and Supplies -- 1.85%
Avery Dennison Corporation ...................... 400 21,500
Ikon Office Solutions ........................... 400 5,825
International Business Machines ................. 3,300 378,881
Pitney Bowes, Inc. .............................. 1,000 48,125
Xerox Corporation ............................... 1,100 111,788
---------- ----------
6,200 566,119
---------- ----------
Business Services -- 0.33%
Cedant Corporation* ............................. 2,661 55,548
Deluxe Corporation .............................. 200 7,162
Federal Express Corporation* .................... 560 35,140
Moore Corporation Ltd. .......................... 300 3,975
---------- ----------
3,721 101,825
---------- ----------
</TABLE>
7
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
EQUITIES (Continued)
<S> <C> <C>
Chemicals and Plastics - 2.76%
Air Products & Chemicals, Inc ........................ 800 $ 32,000
Dow Chemical Company ................................. 800 77,350
DuPont (E.I.) de Nemours & Company ................... 3,800 283,575
Eastman Chemical Company ............................. 200 12,450
Ecolab, Inc .......................................... 400 12,400
Engelhard Corporation ................................ 500 10,125
FMC Corporation * .................................... 100 6,819
Grace (W.R) & Company ................................ 200 3,412
Great Lakes Chemical Corporation ..................... 200 7,888
Hercules, Inc ........................................ 300 12,338
Kerr-McGee Corporation ............................... 200 11,575
Mallinckrodt Group, Inc .............................. 300 8,906
Minnesota Mining & Manufacturing ..................... 1,400 115,062
Monsamo Company ...................................... 1,900 106,162
Morton International, Inc ............................ 400 10,000
Nalm Chemical Company ................................ 200 7,025
Praxair, Inc ......................................... 500 23,406
Raychem Corporation .................................. 200 5,913
Rockwell International Corporation ................... 700 33,644
Rohm & Haas Company .................................. 200 20,787
Sigma-Aldrich Corporation ............................ 300 10,538
Union Camp Corporation ............................... 200 9,925
Union Carbide Corporation ............................ 400 21,350
-------- --------
14,200 842,650
-------- --------
Coal -- 0.17%
CSX Corporation ...................................... 700 31,850
Eastern Enterprises .................................. 100 4,288
Fluor Corporation .................................... 300 15,300
-------- --------
1,100 51,438
-------- --------
Communication Equipment -- 1.15%
Cabletron Systems, Inc.* ............................. 500 6,719
GTE Corporation ...................................... 3,200 178,000
Harris Corporation ................................... 200 8,937
Motorola, Inc ........................................ 1,900 99,869
National Semiconductor Corporation * ................. 700 9,231
Scientific-Atlanta, Inc .............................. 200 5,075
Tellabs, Inc.* ....................................... 600 42,975
-------- --------
7,300 350,806
-------- --------
Computer Hardware, Software or Services -- 8.31%
Adobe Systems, Inc ................................... 200 8,487
Advanced Micro Devices, Inc.* ........................ 400 6,825
AMP, Inc ............................................. 700 24,062
Apple Computer, Inc.* ................................ 400 11,475
Autodesk, Inc ........................................ 200 7,725
Automatic Data Processing, Inc ....................... 900 65,587
Bay Networks, Inc.* .................................. 600 19,350
Ceridian Corporation * ............................... 200 11,750
CISCO Systems, Inc ................................... 3,350 308,409
Compaq Computer Corporation .......................... 5,493 155,850
Computer Associates International, Inc ............... 1,850 102,791
Computer Sciences Corporation * ...................... 600 38,400
Data General Corporation * ........................... 100 1,494
Dell Computer Corporation ............................ 2,200 204,187
Gateway 2000, Inc.* .................................. 400 20,250
Honeywell, Inc ....................................... 400 33,425
Intel Corporation .................................... 5,500 $ 407,688
Microsoft Corporation * .............................. 8,300 899,512
Novell, Inc. * ....................................... 1,100 14,025
Oracle Systems Corporation ........................... 3,300 81,056
Parametric Technology Corporation * .................. 800 21,700
Seagate Technologies, Inc. * ......................... 800 19,050
Sun Microsystems, Inc. * ............................. 1,200 52,125
Unisys Corporation * ................................. 800 22,600
---------- ----------
39,793 2,537,823
---------- ----------
Computer -- Semiconductors-- 0.35%
Applied Materials, Inc.* ............................. 1,200 35,400
EMC Corporation ...................................... 1,600 71,700
---------- ----------
2,800 107,100
---------- ----------
Consumer Non-Durables - 3.69%
Corning, Inc ......................................... 700 24,325
General Electric Corporation ......................... 11,100 1,010,100
Grainger (W.W.), Inc ................................. 400 19,925
Lowe's Companies, Inc ................................ 1,200 48,675
Newell Company ....................................... 500 24,906
---------- ----------
13,900 1,127,931
---------- ----------
Consumer Services -- 0.18%
Block (H & R), Inc ................................... 300 12,638
Manor Care, Inc ...................................... 200 7,688
Service Corporation International .................... 800 34,300
---------- ----------
1,300 54,626
---------- ----------
Consumer Staples - 0.14%
Pioneer Hi-Bred International, Inc ................... 1,000 41,375
---------- ----------
Containers - 0.19%
Ball Corporation ..................................... 100 4,019
Crown Cork & Seal Company, Inc ....................... 400 19,000
Owens-Illinois, Inc.* ................................ 500 22,563
Sealed Air Corporation * ............................. 307 11,282
---------- ----------
1,307 56,864
---------- ----------
Cosmetics--Toiletry -- 0.15%
Alberto-Culver Company, Class B ...................... 200 5,800
Avon Products, Inc ................................... 500 38,750
---------- ----------
700 44,550
---------- ----------
Diversified -- 1.75%
Aeroquip-Vickers, Inc ................................ 100 5,837
CBS Corporation ...................................... 2,500 79,375
Cognizant Corporation ................................ 500 31,563
Fortune Brands, Inc .................................. 500 19,219
Loews Corporation .................................... 400 34,850
Raytheon Company, Class B ............................ 1,100 65,038
Tyco International Ltd. .............................. 2,000 126,000
Unilever N.V. ........................................ 2,200 173,663
---------- ----------
9,300 535,545
---------- ----------
</TABLE>
8
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Electrical Equipment -- 1.12%
Cooper Industries, Inc. ................ 300 $ 16,481
FirstEnergy Corporation * .............. 800 24,600
Foster Wheeler Corporation ............. 100 2,144
General Signal Corporation ............. 100 3,600
Hewlett-Packard Company ................ 3,500 209,562
Tektronix, Inc. ........................ 150 5,306
Texas Instruments, Inc. ................ 1,200 69,975
Thomas & Betts Corporation ............. 200 9,850
---------- ----------
6,350 341,518
---------- ----------
Electronics - 0.48%
Eaton Corporation ...................... 200 15,550
EG&G, Inc. ............................. 200 6,000
Emerson Electric Company ............... 1,400 84,437
General Instrument Corporation * ....... 500 13,594
KLA-Tencor Corporation * ............... 200 5,537
Tandy Corporation ...................... 400 21,225
---------- ----------
2,900 146,343
---------- ----------
Energy and Resources - 0.16%
Burlington Resources, Inc. ............. 552 23,771
Dresser Industries, Inc. ............... 600 26,438
---------- ----------
1,152 50,209
---------- ----------
Entertainment - 1.60%
Brunswick Corporation .................. 300 7,406
Disney (Walt) Company .................. 2,300 241,644
Harcourt General Corporation ........... 300 17,850
Hasbro, Inc. ........................... 400 15,725
King World Productions, Inc. ........... 200 5,100
Mattel, Inc. ........................... 900 38,081
Time Warner, Inc. ...................... 1,900 162,331
---------- ----------
6,300 488,137
---------- ----------
Financial Services - 4.40%
American Express Company ............... 1,600 182,400
American General Corporation ........... 910 64,781
Associates First Capital Corporation ... 1,148 88,252
Beneficial Corporation ................. 200 30,637
Countrywide Credit Industries .......... 400 20,300
Dow Jones & Company, Inc. .............. 300 16,725
Equifax, Inc. .......................... 400 14,525
Federal Home Loan Mortgage Corporation . 2,300 108,244
Federal National Mortgage Association .. 3,500 212,625
First Data Corporation ................. 1,500 49,967
Franklin Resources, Inc. ............... 800 43,200
Green Tree Financial Corporation ....... 500 21,406
Household International, Inc. .......... 1,200 59,700
Lehman Brothers Holdings, Inc. ......... 400 31,025
Merrill Lynch & Company, Inc. .......... 1,000 92,250
Pulte Corporation ...................... 200 5,975
Schwab (Charles) Corporation ........... 1,050 34,125
Synovus Financial Corporation .......... 900 21,375
Temple-Inland, Inc. .................... 200 10,775
Travelers Group, Inc. .................. 3,878 235,104
---------- ----------
22,386 1,343,391
---------- ----------
Food and Beverages - 6.39%
Albertson's, Inc........................ 800 41,400
Anheuser-Busch Companies Inc............ 1,600 75,500
Bestfoods .............................. 1,000 58,063
Campbell Soup Company .................. 1,500 79,687
Coca-Cola Company ...................... 8,300 709,650
ConAgra, Inc............................ 1,600 50,700
Coors (Adolph) Company, Class B ........ 100 3,400
Heinz (H.J.) Company ................... 1,200 67,350
Hershey Foods Corporation .............. 500 34,500
Kellogg Company ........................ 1,400 52,588
PepsiCo, Inc............................ 5,200 214,175
Philip Morris Companies, Inc............ 8,100 318,938
Quaker Oats Company .................... 400 21,975
Ralston-Purina Group ................... 400 46,725
Sara Lee Corporation ................... 1,500 83,906
Seagram Company Ltd..................... 1,200 49,125
UST, Inc................................ 600 16,200
Wrigley (Wm) Jr. Company ............... 300 29,400
---------- ----------
35,700 1,953,282
---------- ----------
Food Distribution - 0.72%
Archer-Daniels-Midland Company ......... 1,890 36,619
Costco Companies, Inc. * ............... 700 44,144
General Mills, Inc...................... 500 34,187
Giant Food, Inc., Class A .............. 200 8,612
Great Atlantic & Pacific Tea
Company Inc............................ 100 3,306
Kroger Company ......................... 800 34,300
Supervalu, Inc.......................... 200 8,875
Sysco Corporation ...................... 1,000 25,625
Winn Dixie Stores, Inc.................. 500 25,594
---------- ----------
5,890 221,262
---------- ----------
Glass Products - 0.16%
Owens Corning Fiberglass Corporation ... 200 8,163
PPG Industries, Inc..................... 600 41,737
---------- ----------
800 49,900
---------- ----------
Health Care Facilities - 0.35%
Columbia/HCA Healthcare Corporation .... 2,100 61,163
Humana, Inc. * ......................... 500 15,594
Tenet Healthcare Corporation * ......... 1,000 31,250
---------- ----------
3,600 108,007
---------- ----------
Health Care Products - 4.22%
Abbott Laboratories .................... 5,200 212,550
Allergan, Inc........................... 200 9,275
Bausch & Lomb Inc....................... 200 10,025
Becton, Dickinson & Company ............ 400 31,050
Merck & Company, Inc.................... 4,100 548,375
Pfizer, Inc............................. 4,400 478,225
---------- ----------
14,500 1,289,500
---------- ----------
Holding Companies - 0.17%
Providian Financial Corporation ........ 300 23,569
Public Service Enterprise .............. 800 27,550
---------- ----------
1,100 51,119
---------- ----------
9
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Home Appliances - 0.39%
Black & Decker Corporation ............. 300 $ 18,300
Illinois Tool Works, Inc. .............. 800 53,350
Maytag Corporation ..................... 300 14,813
Snap-On, Inc. .......................... 200 7,250
Stanley Works .......................... 300 12,469
Whirlpool Corporation .................. 200 13,750
---------- ----------
2,100 119,932
---------- ----------
Home Furnishings and Housewares - 0.87%
American Home Products Corporation ..... 4,400 227,700
Armstrong World ........................ 100 6,737
Rubbermaid, Inc. ....................... 500 16,594
Springs Industries, Inc. ............... 200 9,225
Tupperware Corporation ................. 200 5,625
---------- ----------
5,400 265,881
---------- ----------
Hotels and Restaurants - 0.85%
Darden Restaurants, Inc. ............... 500 7,938
Harrah's Entertainment Corporation* .... 300 6,975
Hilton Hotels Corporation .............. 800 22,800
Marriott International, Inc., Class A... 800 25,900
McDonald's Corporation ................. 2,300 158,700
Mirage Resorts, Inc.* .................. 600 12,788
Tricon Global Restaurants, Inc.* ....... 490 15,527
Wendy's International, Inc. ............ 400 9,400
---------- ----------
6,190 260,028
---------- ----------
Insurance - 4.01%
Aetna Life & Casualty Company .......... 500 38,062
Allstate Corporation ................... 1,500 137,344
American International Group, Inc. ..... 2,350 343,100
AON Corporation ........................ 600 42,150
Chubb Corporation ...................... 600 48,075
CIGNA Corporation ...................... 900 62,100
Cincinnati Financial Corporation ....... 600 23,025
Conseco, Inc. .......................... 500 23,375
General Re Corporation ................. 300 76,875
Hartford Financial Services Group, Inc.. 400 45,750
Jefferson-Pilot Corporation ............ 300 17,381
Lincoln National Corporation ........... 400 36,550
Marsh & McLennan Companies, Inc. ....... 900 54,394
MBIA, Inc............................... 400 29,950
MGIC Investment Corporation ............ 400 22,825
Progressive Corporation ................ 300 42,300
SAFECO Corporation ..................... 400 18,175
St. Paul Companies, Inc. ............... 623 26,212
SunAmerica, Inc. ....................... 600 34,463
Torchmark Corporation .................. 400 18,300
Transamerica Corporation ............... 200 23,000
United Healthcare Corporation .......... 600 38,100
UNUM Corporation ....................... 400 22,200
---------- ----------
14,173 1,223,706
---------- ----------
Machinery and Heavy Equipment - 0.57%
Caterpillar, Inc. ...................... 1,200 63,450
Cincinnati Milacron, Inc. .............. 100 2,437
Deere & Company ........................ 800 42,300
Dover Corporation ...................... 800 27,400
Ingersoll-Rand Company ................. 600 26,437
Parker-Hannifin Corporation ............ 300 11,438
---------- ----------
3,800 173,462
---------- ----------
Manufacturing - 0.88%
Alcan Aluminum Ltd. .................... 700 19,337
Aluminum Company of America ............ 600 39,562
Boston Scientific Corporation* ......... 700 50,138
Briggs & Stratton Corporation .......... 100 3,744
Brown-Forman Corporation, Class B ...... 200 12,850
Case Corporation ....................... 300 14,475
LSI Logic Corporation .................. 500 11,531
Micron Technology, Inc.* ............... 700 17,369
PACCAR Inc. ............................ 200 10,450
Reynolds Metals Company ................ 200 11,187
Sherwin-Williams Company ............... 600 19,875
Silicon Graphics, Inc.* ................ 600 7,275
Thermo Electron Corporation. ........... 400 13,675
3COM Corporation. ...................... 1,200 36,825
---------- ----------
7,000 268,293
---------- ----------
Medical Instruments, Services and Supplies - 1.13%
Bard (C.R.), Inc. ...................... 200 7,612
Baxter International, Inc. ............. 900 48,431
Biomet, Inc. ........................... 300 9,919
Cardinal Health, Inc. .................. 300 28,125
Guidant Corporation .................... 600 42,787
HBO & Company .......................... 1,200 42,300
HEALTHSOUTH Corporation ................ 1,200 32,025
Medtronic, Inc. ........................ 1,600 102,000
Shared Medical Systems Corporation...... 100 7,344
St. Jude Medical, Inc.* ................ 300 11,044
United States Surgical Corporation...... 300 13,688
---------- ----------
7,000 345,275
---------- ----------
Metals and Mining - 0.37%
Allegheny Teledyne, Inc. ............... 700 15,969
ASARCO, Inc. ........................... 100 2,225
Barrick Gold Corporation ............... 1,100 21,106
Battle Mountain Gold Company ........... 700 4,156
Cyprus Amax Minerals Company ........... 300 3,975
Freeport-McMoRan Copper &
Gold, Inc., Class B ................... 600 9,113
Homestake Mining Company ............... 700 7,263
Inco Ltd. .............................. 600 8,175
Newmont Mining Corporation ............. 472 11,151
Phelps Dodge Corporation ............... 300 17,156
Placer Dome, Inc. ...................... 1,000 11,750
---------- ----------
6,572 112,039
---------- ----------
10
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Miscellaneous - 1.71%
S & P Depositary Receipt ................. 4,600 $ 521,237
---------- ----------
Natural Gas - 0.37%
Columbia Gas System, Inc. ................ 300 16,687
Consolidated Natural Gas Company ......... 300 17,662
Enron Corporation ........................ 1,100 59,469
NICOR, Inc. .............................. 100 4,012
ONEOK, Inc. .............................. 100 3,988
Sonat, Inc. .............................. 300 11,588
---------- ----------
2,200 113,406
---------- ----------
News and Publishing - 0.79%
Gannett Company, Inc. .................... 1,000 71,063
Kimberly-Clark Corporation ............... 1,800 82,575
Knight-Ridder, Inc. ...................... 300 16,519
New York Times Company, Class A .......... 300 23,775
Times Mirror Company (New), Class A ...... 300 18,863
Tribune Company .......................... 400 27,525
---------- ----------
4,100 240,320
---------- ----------
Oil - 6.68%
Amerada Hess Corporation ................. 300 16,294
Amoco Corporation ........................ 3,200 133,200
Anadarko Petroleum Company ............... 200 13,437
Apache Corporation ....................... 300 9,450
Ashland, Inc. ............................ 200 10,325
Atlantic Richfield Company ............... 1,000 78,125
Baker Hughes, Inc. ....................... 500 17,281
Chevron Corporation ...................... 2,200 182,737
Coastal Corporation ...................... 300 20,944
Exxon Corporation ........................ 8,400 599,025
Halliburton Company ...................... 800 35,650
McDermott International, Inc. ............ 200 6,888
Mobil Corporation ........................ 2,600 199,225
Occidental Petroleum Corporation ......... 1,100 29,700
Oryx Energy Company * .................... 400 8,850
Pennzoil Company ......................... 100 5,062
Phillips Petroleum Company ............... 900 43,369
Royal Dutch Petroleum Company ............ 7,200 394,650
Tenneco, Inc. ............................ 500 19,031
Texaco, Inc. ............................. 1,800 107,437
Union Pacific Corporation ................ 800 35,300
Union Pacific Resources Group ............ 800 14,050
Unocal Corporation ....................... 800 28,600
USX-Marathon Group Common (New) .......... 900 30,881
---------- ----------
35,500 2,039,511
---------- ----------
Oil Equipment and Services - 0.44%
Helmerich & Payne, Inc. .................. 400 9,200
Schlumberger Ltd. ........................ 1,600 109,300
Western Atlas, Inc. ...................... 200 16,975
---------- ----------
2,200 135,475
---------- ----------
Paper and Forest Products - 0.63%
Bemis Company, Inc. ...................... 200 8,175
Boise Cascade Corporation ................ 200 6,550
Champion International Corporation ....... 300 14,756
Fort James Corporation ................... 600 26,700
Georgia-Pacific Corporation .............. 300 17,681
Harnischfeger Industries, Inc. ........... 100 2,831
International Paper Company .............. 1,000 43,000
Louisiana Pacific Corporation ............ 300 5,475
Mead Corporation ......................... 500 15,875
Potlatch Corporation ..................... 100 4,200
Stone Container Corporation * ............ 400 6,250
Weyerhaeuser Company ..................... 600 27,713
Willamette Industries, Inc. .............. 400 12,800
---------- ----------
5,000 192,006
---------- ----------
Personal Items - 3.04%
Colgate-Palmolive Company ................ 1,000 88,000
Gillette Company ......................... 3,800 215,412
International Flavors & Fragrances, Inc. . 300 13,031
Jostens, Inc. ............................ 200 4,825
Proctor & Gamble Company ................. 4,600 418,888
Warner-Lambert Company ................... 2,700 187,313
---------- ----------
12,600 927,469
---------- ----------
Petroleum Refining - 0.19%
Rowan Companies * ........................ 300 5,831
Sun Company .............................. 300 11,644
Williams Companies, Inc. ................. 1,300 43,875
---------- ----------
1,900 61,350
---------- ----------
Pharmaceuticals - 4.18%
ALZA Corporation ......................... 300 12,975
Bristol-Myers Squibb Company ............. 3,400 390,787
Johnson & Johnson ........................ 4,500 331,875
Lilly (Eli) & Company .................... 3,700 244,431
Pharmacia & Upjohn, Inc. ................. 1,700 78,413
Schering-Plough Corporation .............. 2,400 219,900
---------- ----------
16,000 1,278,381
---------- ----------
Photographic Equipment and Supplies - 0.29%
Eastman Kodak Company .................... 1,100 80,369
Polaroid Corporation ..................... 200 7,113
---------- ----------
1,300 87,482
---------- ----------
Printing and Publishing - 0.28%
American Greetings Corporation, Class A .. 200 10,187
Donnelly (RR) & Sons Company ............. 500 22,875
Dun & Bradstreet Corporation ............. 500 18,062
McGraw-Hill, Inc. ........................ 300 24,469
Westvaco Corporation ..................... 300 8,475
---------- ----------
1,800 84,068
---------- ----------
Railroads - 0.12%
Norfolk Southern Corporation ............. 1,200 35,775
---------- ----------
Research and Development -- 0.17%
Amgen, Inc. .............................. 800 52,300
---------- ----------
Retail - Store - 3.91%
Abercrombie & Fitch Company, Class A * ... 1 42
American Stores Company .................. 1,100 26,606
Consolidated Stores Corporation * ........ 300 10,875
11
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Retail - Store (Continued)
Circuit City Stores, Inc. --
Circuit City Group ................ 400 $ 18,750
CVS Corporation .................... 1,200 46,725
Dayton Hudson Corporation .......... 1,400 67,900
Dillard's, Inc., Class A ........... 400 16,575
Federated Department Store * ....... 600 32,288
Gap, Inc. .......................... 1,350 83,194
Kmart Corporation * ................ 1,500 28,687
Limited, Inc. ...................... 800 26,500
Longs Drug Stores Company .......... 100 2,887
May Department Stores Company ...... 800 52,400
Mercantile Stores Company .......... 200 15,787
Nordstrom, Inc. .................... 200 15,450
Penney (J.C.) Company, Inc. ........ 800 57,850
Rite Aid Corporation ............... 800 30,050
Russell Corporation ................ 100 3,019
Sears, Roebuck & Company ........... 1,300 79,381
TJX Companies, Inc. ................ 800 19,300
Toys R Us, Inc. * .................. 1,000 23,562
Venator Group, Inc. * .............. 500 9,562
Walgreen Company ................... 1,600 66,100
Wal-Mart Stores, Inc ............... 7,600 461,700
---------- ----------
24,851 1,195,190
---------- ----------
Savings and Loan Associations -- 0.32%
Ahmanson (H.F.) Company ............ 400 28,400
Golden West Financial Corporation .. 200 21,263
Washington Mutual Savings .......... 1,140 49,519
---------- ----------
1,740 99,182
---------- ----------
Soaps and Detergents -- 0.17%
Clorox Company ..................... 400 38,150
NACCO Industries, Inc., Class A .... 100 12,925
---------- ----------
500 51,075
---------- ----------
Steel -- 0.14%
Armco, Inc. * ...................... 400 2,550
Bethlehem Steel Corporation * ...... 400 4,975
Inland Steel Industries, Inc. ...... 200 5,637
Nucor Corporation .................. 300 13,800
Timken Company ..................... 200 6,163
USX-U.S. Steel Group, Inc. ......... 200 6,600
Worthington Industries, Inc. ....... 300 4,519
---------- ----------
2,000 44,244
---------- ----------
Technology -- 0.62%
Ameritech Corporation .............. 3,600 161,550
ITT Industries ..................... 400 14,950
Millipore Corporation .............. 200 5,450
Perkin-Elmer Corporation ........... 100 6,219
---------- ----------
4,300 188,169
---------- ----------
Telecommunications -- 8.09%
AirTouch Communications, Inc. * .... 2,100 122,719
ALLTEL Corporation ................. 600 27,900
Andrew Corporation ................. 300 5,419
Ascend Communications, Inc. * ...... 600 29,738
AT&T Corporation ................... 5,400 308,475
Bell Atlantic Corporation .......... 5,150 234,969
BellSouth Corporation .............. 3,400 228,225
Comcast Corporation,
Special Class A (non-voting) ...... 1,200 48,712
DSC Communications Corporation * ... 300 9,000
Frontier Corporation ............... 600 18,900
Lucent Technologies, Inc. .......... 4,400 366,025
MCI Communications Corporation ..... 2,400 139,500
Mediaone Group, Inc. * ............. 2,000 87,875
Nextel Communications, Inc. * ...... 900 22,388
Northern Telecommunications Ltd. ... 1,800 102,150
SBC Communications ................. 6,000 240,000
Sprint Corporation ................. 1,400 98,700
Tele-Communications Inc., Class A .. 1,700 65,344
US West, Inc. ...................... 1,755 82,467
Viacom Inc., Class B * ............. 1,200 69,900
WorldCom, lnc. * ................... 3,400 164,687
---------- ----------
48,605 2,473,093
---------- ----------
Tire and Rubber - 0.17%
Cooper Tire & Rubber Company ....... 300 6,187
Goodrich (B.F.) Company ............ 300 14,888
Goodyear Tire & Rubber Company ..... 500 32,219
---------- ----------
1,100 53,294
---------- ----------
Transportation - 0.19%
Burlington Northern Santa Fe ....... 500 49,094
Ryder System, Inc. ................. 300 9,469
---------- ----------
800 58,563
---------- ----------
Utilities - 2.20%
Ameren Corporation ................. 400 15,900
American Electric Power Company ... 600 27,225
Baltimore Gas & Electric Company ... 400 12,425
Carolina Power & Light Company ..... 500 21,688
Central & Southwest Corporation .... 600 16,125
Cinergy Corporation ................ 500 17,500
Consolidated Edison Company ........ 700 32,244
Dominion Resources, Inc. ........... 600 24,450
DTE Energy Company ................. 500 20,187
Duke Energy Company ................ 1,122 66,478
Edison International ............... 1,400 41,388
Entergy Corporation ................ 1,000 28,750
FPL Group, Inc. .................... 500 31,500
GPU, Inc. .......................... 400 15,125
Houston Industries, Inc. ........... 899 27,757
National Service Industries, Inc. .. 100 5,088
12
<PAGE>
MML Equity Index Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Utilities (Continued)
Niagara Mohawk Power Corporation . 600 $ 8,962
Northern States Power Company .... 400 11,450
PacifiCorp ....................... 900 20,363
PECO Energy Company .............. 700 20,519
Peoples Energy Corporation ....... 100 3,863
PG & E Corporation ............... 1,500 47,344
PP & L Resources, Inc ............ 500 11,344
Sempra Energy * .................. 851 23,619
Southern Company ................. 2,200 60,912
Texas Utilities Company .......... 845 35,173
Unicom Corporation ............... 700 24,544
---------- -------------
19,517 671,923
---------- -------------
Waste Management -- 0.29%
Browning-Ferris Industries, Inc .. 700 24,325
Laidlaw, Inc., Class B
(non-voting)..................... 1,000 12,188
Waste Management, Inc ............ 1,500 52,500
---------- -------------
3,200 89,013
---------- -------------
TOTAL EQUITIES
(Cost $22,137,159) .............. 30,507,563
-------------
SHORT-TERM INVESTMENTS - 0.40%
(Cost $122,929)
Dreyfus Cash Management Fund,
Class A ......................... 122,929 122,929
---------- -------------
Total Investments
(Cost $22,260,088) (a) 100.25% 30,630,492
Other Assets And Liabilities (Net) (0.25) (77,400)
-------- -------------
NET ASSETS 100.00% $ 30,553,092
======== =============
(a) Federal Income Tax Information;
At June 30, 1998 the net unrealized
appreciation on investments based
on cost of $22,260,088 for federal
income tax purposes is as follows:
Aggregate gross unrealized
appreciation for all investments
in which there is an excess of
market value over tax cost........................... $ 8,757,658
Aggregate gross unrealized depreciation
for all investments in which there is an
excess of tax cost over market value................. (387,254)
-------------
Net unrealized appreciation $ 8,370,404
=============
* Non-income producing security
See Notes to Financial Statements.
13
<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, as amended.
MML Trust, which has six 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 its capital accounts
without impacting the net asset value of the Fund.
D. Federal Income Tax
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.
14
<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. Through April 30,
1998, $29,698 of the Fund's total expenses were borne by MassMutual pursuant to
an unilateral agreement by MassMutual to reimburse certain expenses of the Fund.
MassMutual's obligation to bear certain expenses of the Fund terminated May 1,
1998. MassMutual also acts as transfer agent and dividend paying agent.
4. PURCHASE AND SALES OF INVESTMENTS
Proceeds
For the Six Months Ended Acquisition from Sales
June 30, 1998 Cost and Maturities
------------- ----------- --------------
Equities............................... $ 200,004 $ 253,012
Short-term Investments................. 1,757,655 1,663,038
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:
For the Six For the
Months Ended Period Ended
June 30, 1998 December 31, 1997*
------------- ------------------
Shares
Sales of shares ...... 128,270 2,002,676
Reinvestment of shares 18,716 0
Redemption of shares . (231) (1)
------------- -------------
Net Increase ......... 146,755 2,002,675
============= =============
Amount
Sales of shares ...... $ 1,720,707 $ 20,030,027
Reinvestment of shares 226,089 0
Redemption of shares . (3,109) (8)
------------- -------------
Net Increase ......... $ 1,943,687 $ 20,030,019
============= =============
* The Fund commenced operations on May 1, 1997.
15
