<PAGE>
MML Series Investment Fund
Table of Contents
Page
----
To Our Shareholders .................................................. 2-7
Statement of Assets and Liabilities as of June 30, 1998 .............. 8
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Statement of Operations For the Six Months Ended June 30, 1998 ....... 9
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Statement of Changes in Net Assets For the Six Months Ended
June 30, 1998 and For the Year Ended December 31, 1997 ................ 10
MML Equity Fund
MML Money Market Fund
MML Managed Bond Fund
MML Blend Fund
Financial Highlights
MML Equity Fund ................................................ 11
MML Money Market Fund .......................................... 11
MML Managed Bond Fund .......................................... 12
MML Blend Fund ................................................. 13
Schedule of Investments as of June 30, 1998
MML Equity Fund ................................................. 14-15
MML Money Market Fund ........................................... 16-17
MML Managed Bond Fund ........................................... 18-20
MML Blend Fund .................................................. 21-27
Notes to Financial Statements .......................................... 28-30
1
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MML Series Investment 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.
2
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How MassMutual and Babson manage these risk factors is to focus, as we always
have, on building portfolios with carefully selected, well-researched stocks and
bonds that represent long-term opportunities. This approach is designed to help
protect capital in bear markets and reap the rewards of bull markets.
[SIGNATURE TO APPEAR HERE]
Stuart H. Reese
President
MML Series Investment Fund
July 31, 1998
3
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MML EQUITY FUND
How did the Fund perform during the first half of 1998?
During the first half of 1998, the Fund lagged the S&P 500 returning 8.45
percent for the period.* Most value managers underperformed the S&P 500, which
was up 17.7 percent for the six months ended June 30, 1998. There is always a
conflict in the market place between the two distinct styles of investing:
growth versus value. The growth style has had the upper hand for the past four
and a half -- years the longest period of relative outperformance by one of the
styles since the mid 70's. The odds increasingly favor a reversion to the mean
at some future point. We believe buying value at this point is buying some
protection. It may be the safer approach at this juncture of the market.
How did the stock market progress during the six-month period?
It has been a continuation of the best of all possible worlds for investors,
with high returns from common stocks the order of the day. Most of the large
capitalization, high multiple, low income producing securities had an
outstanding six-month period. There has been money coming into the market
seeking quality. Foreign investors have been moving into the U.S. market even
though their own markets have done reasonably well. So it has been positive in
terms of liquidity for the overall market, both stocks and bonds.
At the same time, most value managers lagged the market because of a divergence
created in the market by growing concerns about deteriorating economic
conditions in Asia and the impact that those conditions would have on worldwide
commodity prices, competition and economic activity in Europe and the U.S. It
led investors to have concerns about any companies that had a cyclical
orientation, and it forced investors to focus primarily on the largest, most
assured high-growth companies, regardless of their valuations.
In what areas of the stock market did you focus your investment selection and
why?
We added moderately to our holdings in the chemical industry, with our focus on
specialty chemical companies that are experiencing stable demand and are able to
generate ample cash flow that can be used to increase dividends and buy back
shares. One new stock, Bemis Corporation, a food-packaging manufacturer, has had
a pattern of growing demand, revenues and earnings. It is an extremely well run
company that dominates its markets and does not have the cyclical
characteristics typical of chemical companies.
We have also added Englehard Corporation, a specialty chemical producer that
makes catalytic converters. This stock has done better than other chemical
industry stocks over the last six months because of investor perceptions that
this is an improving company with a very productive research effort and strong
growth prospects.
We sometimes buy against trends -- in this case, buying chemical companies when
there is a broad perception in the market that chemical companies are not
attractive. We share that perception about commodity chemical companies but our
focus in this particular industry is on specialty chemical companies that
currently represent exceptional value. Currently, specialty chemical companies
are selling at between 50 percent and 70 percent of the market multiple.
Normally, at their peak, they sell at 1.5 times the market multiple.
How has the Fund benefited from this strategy?
The premise of our stock selection is to try to find good companies that are
reasonably valued in the marketplace. Typically, the stocks discount is a result
of an earnings glitch or a change in investor perception that we determine to be
temporary. As long as a stock remains undervalued and the prospect for recovery
in the marketplace remains, we will stay with it. Ultimately, as these factors
change over time, the Fund should see the payoff.
What changes to the portfolio do you anticipate between now and year-end?
We do not anticipate making wholesale changes to the portfolio over the near
term. While this recent period of relative underperformance has indeed been
disappointing, shareholders should take comfort in the substantial values that
exist among the high quality companies comprising the portfolio.
Going forward, our strategy is to remain alert to upgrade opportunities where
more immediate and clearly definable improvement in earnings prospects can be
obtained for at least equivalent value and where the stock might be closer to
the value recognition payoff. The portfolio will continue to possess the quality
and value characteristics that we believe offer the potential of sound
investment returns at relatively low risk.
Looking ahead, what is your outlook for the economy and the Fund in the second
half of 1998?
We believe the second half of the year will be an environment in which we will
see a slowing of overall economic activity. We continue to see the impact of the
Asian markets on worldwide economies and the environment will be one of
difficult earnings progress; that is, we will probably see a period where any
revisions to earnings forecasts are in a downward direction.
4
<PAGE>
We do, however, believe that this will be an environment where liquidity
continues to flow into the market. Investors still have a preference for common
stocks. Equities have performed well and investors are acknowledging that. It
should be a good environment for the capital markets, although it is
unreasonable to expect that the stock market will have another 17% gain over the
second half of the year. It is probably going to be a more difficult environment
to generate the kind of performance numbers the overall markets have shown, but
overall it is still a very good environment for investing in financial assets.
(*)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.
MML MONEY MARKET FUND
How did the Fund perform during the first half of 1998?
The Fund delivered a total return of 2.56 percent(*) for the six-month period,
outpacing Lipper Analytical's Money Market Fund average, which returned 2.42
percent. Over the past six months, our total rate of return for the trailing
12-month period consistently surpassed the Lipper average.
How would you characterize your market environment during that six-month period?
Low interest rates continued to help fuel the U.S. expansion, now in its eighth
year. The benefit of low interest rates has been most evident in housing, where
low mortgage rates have made buying a home more affordable. Housing had a
positive impact on the economy through increased construction and consumer
buying of everything from new furniture and appliances to home fix-up goods. The
Federal Fund's rate (the interest rate charged by banks to other banks for
overnight loans) was held steady at 5.5 percent.
During the first quarter, the economy expanded at a rate of 5.4 percent, the
fastest we have seen in two years. Inflation remained almost imperceptible, as
increased productivity growth has helped offset the tight labor markets.
Unemployment fell as low as 4.3 percent--comparable to the unemployment rate in
Japan. This was truly a record-breaking event, since the U.S. unemployment rate
has historically run four or more percentage points higher than in Japan.
Another record-breaking event is that the federal government is approaching its
first surplus in decades. The 30-Year U.S. Treasury bond fell during the first
half of this year to the lowest yield--5.57 percent--since the government began
selling the 30-year bond slightly over 20 years ago.
The Consumer Price Index rose at a 1.5 annual percentage rate during the first
half of 1998, down modestly from 1997. Meanwhile, the Producer Price Index has
fallen this year, pushed lower by the strength of the U.S. dollar and lower
prices for imported goods due to the problems in Japan.
What was the Fund's portfolio positioning during that time, and how did it
benefit the Fund?
The Fund continues to be fully invested in high quality Tier 1 securities. The
portfolios' assets grew at a modest 3 percent during the first half of 1998,
ending at $145 million as of June 30, 1998.
The average maturity for the Fund, which we try to keep in line with the
IBC/Donohue Universe (an index that tracks the performance, assets, average
maturities and portfolio composition of taxable and tax-free money market funds)
ranged between 52 and 58 days. At the end of June, the Fund's average maturity
was 58 days, in line with the IBC benchmark. We lengthened our average life in
March when commercial paper rates increased slightly. For the most part, short
rates were fairly static during the first half of 1998, with the commercial
paper rate for the six months ended in June ranging from 5.60 to 5.72 percent.
Increasing our average life in the spring helped us take advantage of the higher
yields in the market, and put us in line with IBC/Donohue universe.
What is your outlook for the second half of 1998?
The U.S. domestic economy continues without any real problems. However, the
Asian problems that started in 1997 continue to be a controlling factor of our
market's direction. The Japanese Yen and the Japanese economy continue to be
pummeled. While we are reporting our first surplus in 29 years, Japan is
reporting its worst budget deficit since World War II. Obviously, one big
concern in Japan is the bank loan problem, which is estimated to be about five
times worse than the U.S. banking crisis of the 1980s which was also due to loan
deterioration. We also have the other Asian economies--Thailand, Korea, Russia
and China--to watch in the second half.
The second half of 1998 will likely be a continuation of the `flight to quality'
story of the first half--that is, a flight out of the Asian markets and a flight
into U.S. Treasuries and the U.S. dollar.
(*)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.
5
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MML MANAGED BOND FUND
How did the Fund perform during the first half of 1998?
We have seen good performance from the Fund so far in 1998. Managed Bond Fund's
year-to-date total return through June 30, 1998, was 4.18 percent.* This
compares favorably versus the Lehman Brothers Government/Corporate Index's (an
index which tracks the performance of U.S. Government Treasury and agency
securities, and corporate and Yankee bonds) return of 4.17 percent. A major
factor contributing to the Fund's performance for the first six months was
coupon income offered by securities, which offered a yield advantage over
Treasuries.
What were the most important developments in your market during the past six
months?
Events in Asia have been at center stage since October 1997 and continue to be
the most significant factor influencing global financial markets. During the
first half of this year Japan's economic slump has worsened and its currency has
weakened materially. The potential of China devaluing its currency has
heightened, as Japan remains unsettled. There has been an accordion affect
between Asian financial markets and the U.S. bond markets for the past six
months. U.S. Treasury yield levels have tended to fall with Asian weakness and
to rise with Asian optimism. Another consequence has been a steadily flattening
U.S. yield curve. Currently, most Treasury bonds now yield about the same as the
Federal Fund's rate (the interest rate charged by banks to other banks for
overnight loans) of 5.5 percent.
Corporate bonds in particular, and mortgage-backed securities to a lesser
extent, have had spread volatility mirroring Asian volatility. Corporate spreads
have been vulnerable to the simultaneous double pressure of worries about credit
quality and new issues supply surges when Asia has weakened and interest rates
have fallen. Supply of new investment grade corporates have grown to slightly
under $200 billion this year, compared to $272 billion in all of 1997 (source:
Securities Data Corporation). Spread widening has contributed to marked
underperformance of corporates this year when compared to U.S. Treasuries.
Mortgage-backed securities have been subject to concerns about prepayments when
interest rates have fallen and as a result many market participants are now
demanding wider spreads on mortgage backed products. Due to the yield advantage
offered by mortgages they slightly outperformed Treasuries over the past six
months.
How was the portfolio positioned during the period, and how did this help the
Fund achieve its investment objective?
The portfolio was positioned very similar to year-end 1997. We continued our
commitment to spread assets, that is, those securities that offer a substantial
yield advantage over Treasuries. As of June 30 approximately 74.2 percent of our
assets were invested in a combination of agency, mortgage-backed securities,
asset-backed securities and corporate securities. This compares with year-end
when 86.2 percent of our assets were invested in these sectors.
While owning corporate bonds hurt us to some extent, it also benefited
us -- specifically, issues with longer maturities have benefited from declining
Treasury rates. Shorter duration issues have also performed well as a yield
alternative to Treasuries. New purchases in the account include the following
names: Boston Scientific, Lasmo PLC (an oil & gas exploration and production
company), ICI Wilmington, Dana Corp and Fletcher Challenge. We also added a
couple of issues with longer maturities: Hershey Corp and Dover Corporation,
both single A rated issues.
Sales of corporate issues occurred as aggressive bids were received and/or as
value was realized. Issues sold included Rite Aid, Hercules, Petro Geo-Services,
and Time Warner. Many corporations tendered bonds this year as they restructured
their companies. Tendered issues were done at very tight levels compared to U.S.
Treasuries. Tendered issues included: Foodbrands, W.R. Grace, and two issues of
U.S. West.
What changes to the portfolio do you anticipate between now and year-end?
We believe that we are poised to take advantage of any spread widening given our
holdings of Treasuries and money market securities. This will allow us to
purchase assets that offer a yield advantage versus Treasuries as attractive
pricing is achieved.
We do believe that investors will need to be more diligent about credit quality,
but not in the immediate future. We believe that given our analytical strengths
we are well poised to meet this challenge.
The flattening yield curve is another area to give one pause. Extending duration
along the curve becomes difficult as shorter securities are yielding about the
same as longer maturity issues. We will want to make sure that for the risk that
we are taking we are getting paid for that risk in a commensurate level.
Looking ahead, what is your outlook for the economy and the Fund in the second
half?
The most likely outcome in the U.S. continues to be one of moderate growth and
low inflation. We believe that corporate bonds at now wider spread levels
continue to offer fundamental value. We are still comfortable with our holdings
of corporates, however at these wider levels we view this as an opportunity to
selectively add to our positions in this sector. As mentioned earlier the lower
interest environment brings many challenges to all market sectors, particularly
the mortgage-backed sector and this sector will be closely monitored for new
opportunities.
*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.
6
<PAGE>
MML BLEND FUND
How did the Fund perform during the first half of 1998?
During the first half of 1998, large capitalization growth stocks continued to
dominate the marketplace. This put a negative spin on our performance given that
more than half of the portfolio was invested in value-oriented stocks. The Fund
delivered a net return of 6.96 percent,* finishing the period behind the 9.88
percent return of the Lipper Balanced Fund Index, an unmanaged index of stock
and bonds.
As a balanced portfolio of stocks and bonds, what was the Fund's percentage
allocation in each of these categories at the end of the period?
Our positioning at the end of June was 56 percent in stocks, 15 percent in bonds
and 29 percent in money market securities. This is a change from our positioning
at the end of 1997, when stocks, bonds and money market securities represented
61, 19 and 20 percent, respectively.
The equity component was lowered in March to reflect the fact that common stocks
are currently at very high valuations. The bond component of the Fund was
correspondingly modestly increased.
Within your stock positioning, in what types of stocks did you focus your
investment selection during the period, and how did this contribute to fund
performance?
In contrast to our success in the healthcare sector in 1997, we did not benefit
from our healthcare holdings in the first six months of 1998. Three of our 10
largest stock holdings were healthcare companies: Bristol-Myers, Schering-Plough
and Becton, Dickinson. These were not our best performers as we closed the
second quarter.
Other sources of the Fund's underperformance across several different sectors
included AMP, an electrical equipment and electronics company; Dover
Corporation, a machinery company; Hewlett-Packard, a computer and office
equipment provider; and Minnesota Mining & Manufacturing, a diversified
manufacturer of industrial, commercial and health care products.
In general, our stock portfolio did not perform well because investors favored
higher growth and lower dividend-paying companies. When you review history in
terms of the two distinct styles of investing -- growth versus value -- it shows
a cyclical inverse relationship between the two styles. At present, the growth
style has been outperforming value investing in one of the longest periods of
relative outperformance by one of the styles.
How did you position the bond portfolio, and what impact did this have on the
Fund?
Within our bond portfolio, our sector diversification remained fairly consistent
with last year. We continue to focus on investment-grade fixed income
securities. As of June 30, 1998, at least half of our bond holdings were AAA
rated corporate bonds, while the remainder was invested in A and BBB rated
bonds. Therefore, the average credit quality rating of our bond portion was AA.
Do you expect to make any significant changes to the Fund's allocation in the
near-term?
We continue to carefully study our exposure to the equity markets. However, we
are reluctant to lower our stock component any further because our holdings are
undervalued and the market has not yet recognized what we believe to be their
true worth. We are waiting to see appropriate valuations before we make any
decisions to sell.
Looking ahead, what is your outlook for the economy and the Fund in the second
half of 1998?
In spite of the recent strong performance from large, growth-oriented stocks, we
believe that our value-oriented stock selection strategy continues to make sense
for the Blend Fund. There is a tremendous amount of value in the stock component
of the portfolio, and we expect that this -- in combination with our fixed
income holdings -- will benefit the Fund and our shareholders over the long
term.
(*)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.
7
<PAGE>
MML Series Investment Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
ASSETS
Investments at value (See Schedule of Investments),
(Notes 2A, 2B and 5)
Common stocks (Identified cost $1,739,126,034;
$930,461,662; respectively) ................................ $2,762,898,120 $ -- $ -- $1,657,815,889
Bonds and notes (Identified cost: $201,125,400;
$542,847,103 respectively) ................................. -- -- 209,392,278 563,946,063
Short-term investments (Identified cost: $117,748,285;
$146,126,310; $16,502,976; 625,556,554 respectively) ....... 117,726,638 146,126,310 16,502,976 625,397,448
-------------- -------------- -------------- --------------
Total investments ........................................ 2,880,624,758 146,126,310 225,895,254 2,847,159,400
Cash ........................................................ 134,726 4,837 4,435 85,047
Receivable for investment securities sold ................... -- -- 2,969 8,907
Receivable for settlement of investment securities purchased
on a forward commitment basis .............................. -- -- 317 --
Interest and dividends receivable ........................... 5,041,865 -- 2,661,676 10,765,652
Prepaid trustees' fees ...................................... 1,306 1,306 1,306 1,306
Other assets ................................................ 2,573 1,483 2,207 2,662
-------------- -------------- -------------- --------------
Total assets ............................................. 2,885,805,228 146,133,936 228,568,164 2,858,022,974
-------------- -------------- -------------- --------------
LIABILITIES
Payable for investment securities purchased ................. 132,890 -- 3,398,610 80,540
Dividends payable (Note 2C) ................................. -- 607,325 -- --
Investment management fee payable (Note 4) .................. 2,633,490 171,583 258,021 2,609,114
-------------- -------------- -------------- --------------
Total liabilities ........................................ 2,766,380 778,908 3,656,631 2,689,654
-------------- -------------- -------------- --------------
NET ASSETS .................................................. $2,883,038,848 $ 145,355,028 $ 224,911,533 $2,855,333,320
============== ============== ============== ==============
Net assets consist of:
Series shares (par value $.01 per share) (Note 6) ........... $ 750,072 $ 1,453,550 $ 176,665 1,117,352
Additional paid-in capital .................................. 1,743,128,498 149,901,478 212,839,557 1,951,164,539
Undistributed net investment income (Note 2C) ............... 26,748,205 13,894 3,261,661 24,680,960
Undistributed net realized gain (loss) on investments and
forward commitments (Notes 2D and 3) ....................... 88,661,694 (13,894) 366,455 130,076,388
Net unrealized appreciation on:
Investments (Note 2A) ...................................... 1,023,750,499 -- 8,266,878 748,294,081
Forward commitments ........................................ -- -- 317 --
-------------- -------------- -------------- --------------
NET ASSETS .................................................. $2,883,038,848 $ 145,355,028 $ 224,911,533 $2,855,333,320
============== ============== ============== ==============
Outstanding series shares ................................... 75,007,186 145,355,028 17,668,545 111,735,238
============== ============== ============== ==============
Net asset value per share ................................... $ 38.44 $ 1.00 $ 12.73 $ 25.55
============== ============== ============== ==============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
MML Series Investment Fund
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------- -----
<S> <C> <C> <C> <C>
Investment income (Note 2B)
Dividends ................................................. $ 28,409,194 $ -- $ -- $ 17,620,768
Interest .................................................. 3,440,987 3,931,795 7,204,321 34,752,616
------------ ------------ ------------ ------------
Total income ........................................... 31,850,181 3,931,795 7,204,321 52,373,384
------------ ------------ ------------ ------------
Expenses
Investment management fee (Note 4) ........................ 5,060,485 339,413 506,725 5,087,148
Trustees' fees ............................................ 16,670 14,404 14,404 14,404
Other expenses ............................................ 648 620 1,805 2,754
Audit fees ................................................ 16,169 11,066 14,235 18,444
------------ ------------ ------------ ------------
Total expenses ......................................... 5,093,972 365,503 537,169 5,122,750
------------ ------------ ------------ ------------
Net investment income (Note 2C) ........................... 26,756,209 3,566,292 6,667,152 47,250,634
------------ ------------ ------------ ------------
Net realized and unrealized gain (loss) on investments and
forward commitments (Notes 2A, 2B and 2D)
Net realized gain (loss) on:
Investments (Notes 2B and 2C) ............................ 88,673,507 (334) 365,750 130,216,571
------------ ------------ ------------ ------------
Total net realized gain (loss) ......................... 88,673,507 (334) 365,750 130,216,571
------------ ------------ ------------ ------------
Change in net unrealized appreciation/depreciation on:
Investments (Note 2A) .................................... 101,176,276 -- 1,819,153 7,650,793
Forward commitments (Note 2D) ............................ -- -- 317 --
------------ ------------ ------------ ------------
Total change in net unrealized appreciation/depreciation 101,176,276 -- 1,819,470 7,650,793
------------ ------------ ------------ ------------
Net gain (loss) ........................................... 189,849,783 (334) 2,185,220 137,867,364
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations ...... $216,605,992 $ 3,565,958 $ 8,852,372 $185,117,998
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
MML Series Investment Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1998
---------------------------------------------------------------
(Unaudited)
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets
Operations:
Net investment income ........ $ 26,756,209 $ 3,566,292 $ 6,667,152 $ 47,250,634
Net realized gain (loss)
on investments and
forward commitments ......... 88,673,507 (334) 365,750 130,216,571
Change in net unrealized
appreciation/depreciation
on investments and
forward commitments ......... 101,176,276 -- 1,819,470 7,650,793
---------------- ------------- ------------- --------------
Net increase in net
assets resulting from
operations .................. 216,605,992 3,565,958 8,852,372 185,117,998
Dividends to shareholders
from: (Note 2C)
Distribution of net
investment income ........... (25,000) (3,565,958) (3,309,276) (22,515,974)
Distribution of net
realized gains .............. -- -- -- --
Net increase (decrease) in
capital share transactions
(Note 6) ................... 303,016,579 4,189,643 14,052,539 220,903,805
---------------- ------------- ------------- --------------
Total increase (decrease) ... 519,597,571 4,189,643 19,595,635 383,505,829
NET ASSETS, at beginning
of the year ................. 2,363,441,277 141,165,385 205,315,898 2,471,827,491
---------------- ------------- ------------- --------------
NET ASSETS, at end of the
period ...................... $2,883,038,848 $ 145,355,028 $ 224,911,533 $2,855,333,320
================ ============= ============= ==============
Undistributed net Investment
income included in net assets
at end of the period/year $ 26,748,205 $ 13,894 $ 3,261,661 $ 24,680,960
================ ============= ============= ==============
<CAPTION>
For the Year Ended December 31, 1997
----------------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets
Operations:
Net investment income ........ $ 47,302,304 $ 7,354,327 $ 12,589,365 $ 85,269,939
Net realized gain (loss)
on investments and
forward commitments ......... 143,291,447 (4,291) 1,090,224 162,884,955
Change in net unrealized
appreciation/depreciation
on investments and
forward commitments ......... 347,666,835 -- 4,682,106 209,070,059
---------------- ------------- ------------- --------------
Net increase in net
assets resulting from
operations .................. 538,260,586 7,350,036 18,361,695 457,224,953
Dividends to shareholders
from: (Note 2C)
Distribution of net
investment income ........... (47,301,234) (7,350,036) (12,621,479) (85,322,771)
Distribution of net
realized gains .............. (143,291,448) -- -- (162,679,164)
Net increase (decrease) in
capital share transactions
(Note 6) ................... 313,775,004 (4,065,657) 18,003,397 168,614,232
---------------- ------------- ------------- --------------
Total increase (decrease) ... 661,442,908 (4,065,657) 23,743,613 377,837,250
NET ASSETS, at beginning
of the year ................. 1,701,998,369 145,231,042 181,572,285 2,093,990,240
---------------- ------------- ------------- --------------
NET ASSETS, at end of the
period ...................... $2,363,441,277 $ 141,165,385 $ 205,315,898 $2,471,827,491
================ ============= ============= ==============
Undistributed net Investment
income included in net assets
at end of the period/year $ 16,996 $ 13,560 $ (96,215) $ (53,700)
================ ============= ============= ==============
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
MML Series Investment Fund
FINANCIAL HIGHLIGHTS
Selected per share data for each series share outstanding throughout:
<TABLE>
<CAPTION>
MML EQUITY FUND
Six Months
Ended Year Ended December 31,
June 30, ----------------------------------------------------
1998 1997 1996 1995 1994
---- ---- ---- ---- ----
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year ............................. $ 35.443 $ 29.786 $ 25.924 $ 20.520 $ 20.510
------------ ------------ ------------ ------------ ----------
Income from investment operations:
Net investment income .......................... .357 .709 .703 .634 .594
Net realized and unrealized
gain (loss) on investments .................... 2.638 7.806 4.547 5.754 .248
------------ ------------ ------------ ------------ ----------
Total from investment operations ............... 2.995 8.515 5.250 6.388 .842
------------ ------------ ------------ ------------ ----------
Less distributions:
Dividends from net investment income ........... (.001) (.709) (.703) (.634) (.594)
Distribution from net realized gains ........... -- (2.149) (.685) (.350) (.238)
Distribution in excess ot net realized
gains ......................................... -- -- -- -- --
------------ ------------ ------------ ------------ ----------
Total distributions ............................ (.001) (2.858) (1.388) (.984) (.832)
------------ ------------ ------------ ------------ ----------
Net asset value:
End of period ................................. $ 38.437 $ 35.443 $ 29.786 $ 25.924 $ 20.520
============ ============ ============ ============ ==========
Total return ................................... 8.45%* 28.59% 20.25% 31.13% 4.10%
Net assets (in millions):
End of period ................................. $ 2,883.04 $ 2,363.44 $ 1,701.99 $ 1,248.90 $ 820.78
Ratio of expenses to average net
assets ........................................ .19%* .35% .38% .41% .43%
Ratio of net investment income to
average net assets ............................ 97%* 2.03% 2.65% 2.89% 3.04%
Portfolio turnover rate ........................ 7.67%* 15.30% 11.42% 11.72% 9.99%
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------------
1993 1992 1991 1990 1989
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year ............................. $ 19.862 $ 18.735 $ 15.659 $ 16.764 $ 14.929
------------ ------------ ------------ ------------ ----------
Income from investment operations:
Net investment income .......................... .524 .543 .563 .636 .694
Net realized and unrealized
gain (loss) on investments .................... 1.365 1.420 3.440 (.722) 2.748
------------ ------------ ------------ ------------ ----------
Total from investment operations ............... 1.889 1.963 4.003 (.086) 3.440
------------ ------------ ------------ ------------ ----------
Less distributions:
Dividends from net investment income ........... (.524) (.543) (.562) (.665) (.711)
Distribution from net realized gains ........... (.717) (.288) (.365) (.354) (.894)
Distribution in excess ot net realized
gains ......................................... -- (.005) -- -- --
------------ ------------ ------------ ------------ ----------
Total distributions ............................ (1.241) (.836) (.927) (1.019) (1.605)
------------ ------------ ------------ ------------ ----------
Net asset value:
End of period ................................. $ 20.510 $ 19.862 $ 18.735 $ 15.659 $ 16.784
============ ============ ============ ============ ==========
Total return ................................... 9.52% 10.48% 25.56% (.51%) 23.04%
Net assets (in millions):
End of period ................................. $ 663.09 $ 490.62 $ 355.04 $ 235.45 $ 226.41
Ratio of expenses to average net
assets ........................................ .44% .46% .48% .49% .50%
Ratio of net investment income to
average net assets ............................ 3.23% 3.09% 3.43% 4.09% 4.30%
Portfolio turnover rate ........................ 11.28% 9.07% 9.37% 13.50% 15.71%
</TABLE>
<TABLE>
<CAPTION>
MML MONEY MARKET FUND
Six Months
Ended Year Ended December 31,
June 30, --------------------------------------------------------------------
1998 1997 1996 1995 1994 1993 1992
----- ---- ---- ---- ---- ---- ----
(Unaudited)
Net asset value:
Beginning of year .................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- -------- -------- --------
Income from investment operations:
Net investment income ................. .021 .051 .049 .054 .038 .027 .034
--------- --------- --------- --------- -------- -------- --------
Total from investment operations ...... .021 .051 .049 .054 .038 .027 .034
--------- --------- --------- --------- -------- -------- --------
Less distributions:
Dividends from net investment income .. (.021) (.051) (.049) (.054) (.038) (.027) (.034)
--------- --------- --------- --------- -------- -------- --------
Total distributions ................... (.021) (.051) (.049) (.054) (.038) (.027) (.034)
--------- --------- --------- --------- -------- -------- --------
Net asset value:
End of period ........................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ========= ======== ======== ========
Total return .......................... 2.56%* 5.18% 5.01% 5.58% 3.84% 2.75% 3.48%
Net assets (in millions):
End of period ........................ $ 145.36 $ 141.17 $ 145.23 $ 108.92 $ 91.79 $ 73.66 $ 84.56
Ratio of expenses to average net
assets ............................... .26%* .52% .52% .54% .55% .54% .53%
Ratio of net investment income to
average net assets ................... 2.51%* 5.07% 4.92% 5.43% 3.81% 2.71% 3.42%
<CAPTION>
Year Ended December 31,
--------------------------------
1991 1990 1989
---- ---- ----
<S> <C> <C> <C>
Net asset value:
Beginning of year .................... $ 1.000 $ 1.000 $ 1.000
-------- -------- --------
Income from investment operations:
Net investment income ................. .059 .078 .088
-------- -------- --------
Total from investment operations ...... .059 .078 .088
-------- -------- --------
Less distributions:
Dividends from net investment income .. (.059) (.078) (.088)
-------- -------- --------
Total distributions ................... (.059) (.078) (.088)
-------- -------- --------
Net asset value:
End of period ......................... $ 1.000 $ 1.000 $ 1.000
======== ======== ========
Total return .......................... 6.01% 8.12% 9.16%
Net assets (in millions):
End of period ........................ $ 94.41 $ 114.59 $ 70.16
Ratio of expenses to average net
assets ............................... .52% .54% .54%
Ratio of net investment income to
average net assets ................... 5.91% 7.80% 8.79%
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
MML Series Investment Fund
FINANCIAL HIGHLIGHTS (Continued)
MML MANAGED BOND FUND
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, -------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ----
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of year ................... $ 12.410 $ 12.048 $ 12.448 $ 11.141 $ 12.405 $ 12.041
------------ ------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income ................ .383 .801 .776 .782 .792 .785
Net realized and unrealized
gain (loss) on investments
and forward commitments ............. .131 .356 (.401) 1.307 (1.264) .618
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations ..... .514 1.157 .375 2.089 (.472) 1.403
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
DMdends from net investment income ... (.183) (.795) (.775) (.782) (.792) (.784)
Distribution from net realized gains . -- -- -- -- -- (.255)
Distribution in excess of net realized
gains ............................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions .................. (.193) (.795) (.775) (.782) (.792) (1.039)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value:
End of period ........................ $ 12.731 $ 12.410 $ 12.048 $ 12.448 $ 11.141 $ 12.405
============ ============ ============ ============ ============ ============
Total return ......................... 4.18%* 9.91% 3.25% 19.14% (3.76%) 11.81%
Net assets (in millions):
End of period ....................... $ 224.91 $ 205.32 $ 181.57 $ 158.70 $ 121.21 $ 129.11
Ratio of expenses to average
net assets .......................... .25%* .47% .51% .52% .52% .54%
Ratio of net investment income to
average net assets .................. 3.10%* 6.06% 6.54% 6.63% 6.69% 6.37%
Portfolio tumover rate ............... 19.19%* 41.99% 46.12% 70.00% 32.77% 58.81%
<CAPTION>
Year Ended December 31,
------------------------------------------------
1992 1991 1990 1989
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net asset value:
Beginning of year ................... $ 12.219 $ 11.318 $ 11.354 $ 10.919
----------- ----------- ----------- -----------
Income from investment operations:
Net investment income ................ .870 .903 .943 .918
Net realized and unrealized
gain (loss) on investments
and forward commitments ............. .001 .916 (.036) .454
----------- ----------- ----------- -----------
Total from investment operations ..... .871 1.819 .907 1.372
----------- ----------- ----------- -----------
Less distributions:
DMdends from net investment income ... (.869) (.902) (.943) (.918)
Distribution from net realized gains . (.158) (.016) -- (.019)
Distribution in excess of net realized
gains ............................... (.022) -- -- --
----------- ----------- ----------- -----------
Total distributions .................. (1.049) (.918) (.943) (.937)
----------- ----------- ----------- -----------
Net asset value:
End of period ........................ $ 12.041 $ 12.219 $ 11.318 $ 11.354
=========== =========== =========== ===========
Total return ......................... 7.31% 16.66% 8.38% 12.83%
Net assets (in millions):
End of period ....................... $ 88.15 $ 66.98 $ 43.07 $ 40.03
Ratio of expenses to average
net assets .......................... .56% .57% .57% .59%
Ratio of net investment income to
average net assets .................. 7.28% 7.96% 8.40% 8.35%
Portfolio tumover rate ............... 39.51% 61.85% 69.93% 64.77%
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
MML Series Investment Fund
FINANCIAL HIGHLIGHTS (Continued)
MML BLEND FUND
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, ---------------------------------------------------------------
1998 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ----
(Unaudited)
Net asset value:
Beginning of year ................... $ 24.080 $ 21.973 $ 20.519 $ 17.672 $ 18.305 $ 17.846
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income ................ .425 .843 .824 .811 .707 .655
Net realized and unrealized
gain (loss) on investments
and forward commitments ............. 1.253 3.692 1.990 3.246 (.271) 1.057
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations ..... 1.678 4.535 2.814 4.057 .436 1.712
----------- ----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income . (.204) (.843) (.824) (.811) (.707) (.655)
Distribution from net realized gains . -- (1.585) (.536) (.399) (.359) (.598)
Distribution in excess of net realized
gains ............................... -- -- -- -- (.003) --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions .................. (.204) (2.428) (1.360) (1.210) (1.069) (1.253)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value:
End of period ....................... $ 25.554 $ 24.080 $ 21.973 $ 20.519 $ 17.672 $ 18.305
=========== =========== =========== =========== =========== ===========
Total return ......................... 6.96%* 20.89% 13.95% 23.28% 2.48% 9.70%
Net assets (in millions):
End of period ....................... $ 2,855.33 $ 2,471.83 $ 2,093.99 $ 1,823.14 $ 1,444.26 $ 1,296.54
Ratio of expenses to average
net assets .......................... .19%* .38% .38% .38% .39% .40%
Ratio of net investment income to
average net assets .................. 1.71%* 3.56% 3.87% 4.19% 3.93% 3.60%
Portfolio turnover rate .............. 15.27%* 21.20% 19.10% 30.78% 26.59% 20.20%
<CAPTION>
Year Ended December 31,
----------------------------------------
1992 1991 1990 1989
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net asset value:
Beginning of year ................... $ 17.307 $ 14.839 $ 15.428 $ 13.876
----------- --------- -------- ---------
Income from investment operations:
Net investment income ................ .707 .736 .792 .823
Net realized and unrealized
gain (loss) on investments
and forward commitments ............. .880 2.771 (.445) 1.921
----------- --------- -------- ---------
Total from investment operations ..... 1.587 3.507 .347 2.744
----------- --------- -------- ---------
Less distributions:
Dividends from net investment income . (.707) (.736) (.811) (.835)
Distribution from net realized galns . (.326) (.303) (.125) (.357)
Distribution in excess of net realized
gains ............................... (.015) -- -- --
----------- --------- -------- ---------
Total distributions .................. (1.048) (1.039) (.936) (1.192)
----------- --------- -------- ---------
Net asset value:
End of period ....................... $ 17.846 17.307 14.839 $ 15.428
=========== ========= ======== =========
Total return ......................... 9.36% 24.00% 2.37% 19.96%
Net assets (in millions):
End of period ....................... $ 1,013.28 797.04 574.15 $ 524.29
Ratio of expenses to average
net assets .......................... .41% .42% .44% .45%
Ratio of net investment income to
average net assets .................. 4.07% 4.54% 5.37% 5.57%
Portfolio turnover rate .............. 25.43% 26.92% 24.55% 22.39%
</TABLE>
*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 the separate account level or to related
insurance products. Inclusion of these charges would reduce the total return
figures for all periods shown.
See Notes to Financial Statements.
13
<PAGE>
MML Equity Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
-------- ------------
EQUITIES - 95.83%
Aerospace & Defense -- 3.47%
Raytheon Company (Class A) ............... 345,000 $ 19,880,625
Raytheon Company (Class B) ............... 560,000 33,110,000
TRW, Inc. ................................ 861,100 47,037,588
------------ ------------
1,766,100 100,028,213
------------ ------------
Agribusiness -- 1.07%
Archer-Daniels-Midland ................... 1,588,745 30,781,934
------------ ------------
Apparel, Textiles, Shoes - 1.39%
VF Corporation ........................... 780,000 40,170,000
------------ ------------
Automotive & Parts - 3.95%
Ford Motor Company ....................... 500,000 29,500,000
Genuine Parts Company .................... 1,100,250 38,026,841
Goodyear Tire & Rubber Company ........... 720,000 46,394,640
------------ ------------
2,320,250 113,921,481
------------ ------------
Banking, Savings & Loans -- 6.39%
The Bank of New York Company,
Incorporated ............................ 660,000 40,053,420
Comercia, Incorporated ................... 485,250 32,147,813
First Union Corp ......................... 493,776 28,762,452
Norwest Corporation ...................... 782,000 29,227,250
Pacific Century Financial Corporation .... 977,900 23,469,600
Wachovia Corporation ..................... 363,200 30,690,400
------------ ------------
3,762,126 184,350,935
------------ ------------
Beverages -- 1.03%
Brown-Forman Corporation (Class B) ....... 463,000 29,747,750
------------ ------------
Chemicals - 5.45%
Air Products and Chemical ................ 600,000 24,000,000
Bemis Corp ............................... 523,900 21,414,411
Engelhard Corporation .................... 1,325,000 26,831,250
The Lubrizol Corporation ................. 565,000 17,091,250
Nalco Chemical Company ................... 849,300 29,831,663
Rohm & Haas .............................. 365,000 37,937,005
------------ ------------
4,228,200 157,105,579
------------ ------------
Communications - 1.83%
GTE Corporation .......................... 946,800 52,665,750
------------ ------------
Computers & Office Equipment - 7.93%
Electronic Data System ................... 800,400 32,016,000
Hewlett-Packard Company .................. 940,000 56,282,500
International Business Machines
Corporation ............................. 440,000 50,517,280
Pitney Bowes, Inc. ....................... 904,000 43,505,000
Xerox Corporation ........................ 455,000 46,239,375
------------ ------------
3,539,400 228,560,155
------------ ------------
Containers -- 2.01%
Crown Cork & Seal ........................ 846,800 40,223,000
Temple-Inland, Inc. ...................... 330,000 17,778,750
------------ ------------
1,176,800 58,001,750
------------ ------------
Cosmetics & Personal Care - 1.71%
Kimberly-Clark Corporation ............... 1,075,000 49,315,625
------------ ------------
Electric Utilities - 2.65%
Dominion Resources Inc. .................. 840,000 34,230,000
SCANA Corporation ........................ 785,200 23,408,382
Teco Energy Inc. ......................... 704,700 18,894,416
------------ ------------
2,329,900 76,532,798
------------ ------------
Electrical Equipment & Electronics -- 5.90%
AMP, Incorporated ........................ 1,205,000 41,421,875
General Electric. Company ................ 762,000 69,342,000
Honeywell Inc. ........................... 332,600 27,792,721
Hubbell, Incorporated (Class B) .......... 757,144 31,516,119
------------ ------------
3,056,744 170,072,715
------------ ------------
Energy - 6.90%
Amoco Corporation ........................ 1,060,000 44,122,500
Eni, SPA - ADR ........................... 464,300 30,179,500
Kerr-McGee Corporation ................... 326,000 18,867,250
Mobil Corporation ........................ 550,000 42,143,750
Occidental Petroleum Corp. ............... 1,124,600 30,364,200
Unocal Corporation ....................... 931,000 33,283,250
------------ ------------
4,455,900 198,960,450
------------ ------------
Financial Services - 2.60%
American General Corporation ............. 492,900 35,088,072
American Express Company ................. 350,000 39,900,000
------------ ------------
842,900 74,988,072
------------ ------------
Foods - 4.75%
Bestfoods ................................ 493,000 28,624,566
ConAgra, Inc. ............................ 1,781,000 56,434,547
General Mills ............................ 400,000 27,350,000
Grainger W W Inc. ........................ 492,000 24,507,504
------------ ------------
3,166,000 136,916,617
------------ ------------
Forest Products & Paper - 1.54%
Westvaco Corporation ..................... 773,055 21,838,804
Weyerhaeuser Company ..................... 490,600 22,659,342
------------ ------------
1,263,655 44,498,146
------------ ------------
Hardware & Tools - .65%
The Stanley Works ........................ 451,000 18,744,462
------------ ------------
Healthcare - 8.34%
Becton, Dickinson and Company ............ 694,300 53,895,038
Bristol-Myers Squibb Company ............. 760,000 87,352,120
Pharmacia & Upjohn Inc. .................. 870,000 40,128,750
Schering-Plough Corp. .................... 643,000 58,914,875
------------ ------------
2,967,300 240,290,783
------------ ------------
Industrial Distribution - 2.34%
Burlington Northern Sante Fe ............. 346,200 33,992,339
Norfolk Southern Corporation ............. 1,120,100 33,392,421
------------ ------------
1,466,300 67,384,760
------------ ------------
Insurance -- 5.59%
Cigna Corporation ........................ 203,400 14,034,600
Jefferson-Pilot Corporation .............. 355,500 20,596,604
Marsh & McLennan Companies, Inc. ......... 841,500 50,857,736
MBIA, Inc. ............................... 536,000 40,133,000
SAFECO Corporation ....................... 782,500 35,554,453
------------ ------------
2,718,900 161,176,393
------------ ------------
14
<PAGE>
MML Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
------ ---------
EQUITIES (Continued)
Machinery & Components -- 1.59%
Dover Corporation ............... 650,000 $ 22,262,500
Parker-Hannifin Corporation ..... 618,075 23,564,109
------------ ------------
1,268,075 45,826,609
------------ ------------
Miscellaneous -- 2.74%
Armstrong World Industries ...... 440,000 29,645,000
USX-Marathon Group .............. 555,200 19,050,022
Minnesota Mining &
Manufacturing Company ........... 369,500 30,368,097
------------ ------------
1,364,700 79,063,119
------------ ------------
Publishing & Printing -- 2.37%
Donnelley R R & Sons ............ 600,000 27,450,000
McGraw-Hill Companies, Inc. ..... 500,000 40,781,000
------------ ------------
1,100,000 68,231,000
------------ ------------
Retail -- 2.76%
The May Department Stores Company 543,000 35,566,500
Sears Roebuck and Company ....... 719,300 43,921,897
------------ ------------
1,262,300 79,488,397
------------ ------------
Retail -- Grocery - 3.45%
Albertson's, Inc. ............... 1,273,500 65,982,582
American Stores Company ......... 1,388,200 33,576,393
------------ ------------
2,661,700 99,558,975
------------ ------------
Telephone Utilities -- 3.34%
Ameritech Corporation ........... 914,000 41,015,750
Frontier Corporation ............ 1,096,200 34,530,300
Pinnacle West Capital ........... 459,800 20,691,000
------------ ------------
2,470,000 96,237,050
------------ ------------
Tobacco -- 2.09%
Fortune Brands, Inc.............. 795,200 30,565,102
UST, Inc. ....................... 1,100,500 29,713,500
------------ ------------
1,895,700 60,278,602
------------ ------------
Total Equities
(Cost $1,739,126,034) ........... 56,387,495 2,762,898,120
-------------
Principal
Amount
---------
SHORT-TERM INVESTMENTS -- 4.08%
Commercial Paper
Amoco
5.440% 7/22/98 ................. $ 4,241,000 $ 4,226,370
Atlantic Richfield
5.440% 7/8/98 .................. 7,000,000 6,991,979
Coca Cola
5.440% 7/31/98 ................. 2,742,000 2,728,755
Walt Disney
5.400% 10/13/98................. 3,233,000 3,179,251
Wait Disney
5.420% 10/26/98 ................ 6,000,000 5,887,900
El Dupont De Nemours & C
5.630% 7/7/98 .................. 12,000,000 11,988,760
Emerson Electric
5.470% 7/8/98 .................. 9,000,000 8,990,428
Federal Home Loan
5.320% 10/9/98 ................. 3,720,000 3,660,511
Ford Motor Cr Company
5.450% 7/22/98 ................. 7,000,000 6,975,852
IBM Corp
5.45% 8/31/98 .................. 5,000,000 4,950,917
Kellog Co.
5.510% 7/22/98 ................. 11,500,000 11,463,037
Lucent Technologies
5.490% 7/13/98 ................. 9,000,000 8,983,530
Merck & Co., Inc.
6.050% 7/1/98 .................. 12,720,000 12,720,000
Sunoco Products Co
6.250% 7/1/98 .................. 10,000,000 10,000,000
Toys R US Inc.
5.510% 7/10/98...... ........... 10,000,000 9,986,224
Transamerica Finance Corp.
5.500% 7/10/98 ................. 5,000,000 4,993,124
------------ ------------
Total Short-Term Investments
(Cost $117,748,285) ........... $ 118,156,000 117,726,638
============== ------------
Total Investments --
(Cost $1,856,874,320) (a) 99.91% $2,880,624,758
====== ==============
(a) Federal Income Tax Information:
At June 30, 1998 the net unrealized
appreciation on investments based on cost
of $1,856,874,320 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...................... $1,038,343,426
Aggregate gross unrealized
depreciation for all investments in which
there is an excess of tax cost
over market value.................................. (14,592,987)
--------------
Net unrealized appreciation........................ $1,023,750,439
==============
See Notes to Financial Statements.
15
<PAGE>
MML Money Market Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
SHORT-TERM INVESTMENTS - 100.53%
<S> <C> <C>
Commercial Paper - 94.33%
Aluminum Company of America
5.480% 9/17/98 ..................... $ 3,600,000 $ 3,557,256
Aristar Inc.
5.570% 7/10/98 ..................... 5,400,000 5,392,481
Aristar Inc.
5.640% 8/6/98 ...................... 135,000 134,239
Atlantic Richfield Company
5.420% 11/24/98 .................... 3,465,000 3,388,414
Baxter Int Inc.
5.520% 7/20/98 ..................... 5,290,000 5,274,588
Beckton Dickinson and Company
5.460% 7/9/98 ...................... 2,220,000 2,217,306
Bellsouth Telecommunications Inc.
5.470% 8/21/98 ..................... 2,795,000 2,773,341
Bellsouth Telecommunications Inc.
5.490% 8/11/98 ..................... 355,000 352,780
Bemis Company Incorporated
5.500% 7/16/98 ..................... 3,885,000 3,876,097
Campbell Soup Company
5.380% 9/29/98 ..................... 2,500,000 2,466,375
Campbell Soup Company
5.440% 12/21/98 .................... 985,000 959,250
Campbell Soup Company
5.340% 1/8/99 ...................... 1,200,000 1,165,429
Cargill, Incorporated
5.460% 7/1/98 ...................... 3,185,000 3,185,000
Carolina Power & Light Company
5.51 0% 7/6/98 ..................... 5,600,000 5,595,714
Caterpillar Financial Services
5.500% 9/11/98 ..................... 4,100,000 4,054,900
Coca Cola Company
5.470% 10/6/98 ..................... 2,335,000 2,300,611
Coca Cola Company
5.470% 7/14/98 ..................... 240,000 239,526
Consolidated National Gas Company
5.530% 7/14/98 ..................... 160,000 159,681
Wait Disney Company
5.360% 9/24/98 ..................... 575,000 567,723
Wait Disney Company
5.400% 11/4/98 ..................... 3,000,000 2,943,300
E.I. Dupont De Nemours & Company
5.41% 7/30/98 ...................... 3,230,000 3,215,924
E.I. Dupont De Nemours & Company
5.420% 10/29/98 .................... 1,145,000 1,124,314
E.I. Dupont De Nemours & Company
5.450% 10/27/98 .................... 1,125,000 1,104,903
Duke Power Company
5.480% 8/13/98 ..................... 3,045,000 3,025,069
Eastman Kodak Company
5.500% 8/17/98 ..................... 1,300,000 1,290,665
Emerson Electric Company
5.460% 10/30/98 .................... 2,100,000 2,063,691
Emerson Electric Company
5.440% 10/30/98 .................... 3,700,000 3,632,348
Finova Capital Corporation
5.430% 7/27/98 ..................... 4,090,000 4,073,960
Finova Capital Corporation
5.540% 10/22/98 .................... 475,000 466,740
Ford Motor Credit Company
5.480% 7/24/98 ..................... 5,100,000 5,082,144
General Electric Company
5.490% 7/28/98 ..................... 375,000 373,456
General Electric Capital Corporation
5.460% 7/15/98 ..................... 3,545,000 3,537,473
General Electric Capital Corporation
5.490% 11/24/98 .................... 210,000 205,324
General Motors Acceptance Corporation
5.400% 8/28/98 ..................... 2,725,000 2,701,293
General Motors Acceptance Corporation
5.450% 8/5/98 ...................... 425,000 422,748
Goldman Sachs & Company
5.440% 7/14/98 ..................... 2,235,000 2,230,609
Goldman Sachs & Company
5.470% 10/8/98 ..................... 2,580,000 2,541,190
Hersey Foods Corporation
5.490% 8/14/98 ..................... 1,685,000 1,673,694
Hersey Foods Corporation
5.500% 8/19/98 ..................... 4,100,000 4,069,307
IBM Credit Corporation
5.450% 10/23/98 .................... 3,300,000 3,243,047
IBM Credit Corporation
5.400% 10/22/98 .................... 455,000 447,288
Mattell Inc. ........................
5.590% 8/26/98 ..................... 3,300,000 3,271,305
Monsanto Company
5.490% 7/23/98 ..................... 1,370,000 1,365,403
Monsanto Company
5.490% 9/18/98 ..................... 4,550,000 4,495,184
Motorola Inc. .......................
5.490% 8/20/98 ..................... 1,330,000 1,319,859
Motorola Inc. .......................
5.490% 8/3/98 ...................... 3,650,000 3,631,631
Potomac Electric Power Company
5.510% 7/22/98 ..................... 2,585,000 2,576,691
Proctor & Gamble Company
5.500% 7/28/98 ..................... 3,785,000 3,769,387
Proctor & Gamble Company
5.480% 9/24/98 ..................... 1,720,000 1,697,745
Shell Oil Company
5.440% 7/29/98 ..................... 2,820,000 2,808,068
Shell Oil Company
5.470% 7/17/98 ..................... 2,680,000 2,673,485
Smithkline Beecham Corporation
5.470% 8/7/98 ...................... 2,410,000 2,396,451
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
MML Money Market Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 24)
--------- ---------
SHORT-TERM INVESTMENTS (Continued)
Commercial Paper (Continued)
Xerox Corporation
5.470% 8/11/98 .............................. 4,750,000 4,720,409
Unilever Capital Corporation
5.470% 8/27/98 .............................. 5,300,000 5,254,098
-------------- -------------
Total Commercial Paper
(Cost $137,108,914 ) ........................ 138,220,000 137,108,914
-------------- -------------
U.S. Government Agency Obligations - 6.20%
Federal Farm Credit Bank
5.430% 9/25/98 ................................ 6,115,000 6,035,678
Federal National Mortgage Association
5.350% 12/18/98 ............................... 3,059,000 2,981,718
-------------- -------------
Total U.S. Government Agency Obligations
(Cost $9,017,396) 9,174,000 9,017,396
-------------- -------------
Total Short-Term Investments
(Cost $146,126,310)(a) $ 147,394,000 $ 146,126,310
============== -------------
Total Investments --
(Cost $148,126,310)(a) 100.53% $ 146,126,310
======= =============
(a) Federal Income Tax Information: The aggregate cost for investments for the
MML Money Market Fund as of June 30, 1998 is the same for financial
reporting and federal income tax purposes.
June 30, 1998 seven-day average yield for the portfolio: 5.22%
See Notes to Financial Statements.
17
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
BONDS AND NOTES - 93.10%
<S> <C> <C>
Asset Backed Securities -- 6.14%
Auto Receivables
California Infrastructure PG&E-1, 1997-1,
Class AG
6.320% 9/25/05 .......................... $ 250,000 $ 254,373
California Infrastructure SDG&E-1, 1997-1,
Class AS
6.190% 9/25/05 .......................... 250,000 253,913
California Infrastructure SCE-1, 1997-1,
Class AS
6.280% 9/25/05 .......................... 300,000 305,733
Capita Equipment Receivables Trust 1996-1,
Class A4
6.280% 6/15/00 .......................... 2,000,000 2,007,960
Case Equipment Ln Trust
5.830% 2/15/O5 .......................... 1,500,000 1,500,815
Chase Manhattan Auto Owner
5.800% 2/15/05 .......................... 1,500,000 1,500,060
Chase Manhattan RV Owner Trust 1997-A
Class A7
6.140% 10/16/06 ......................... 2,000,000 2,004,920
Jet Equipment Trust 1995-A
8.235% 5/1/15 ........................... 1,876,634 2,099,765
Metlife Capital Equipment Loan Trust
Series 1997-A, Class A
6.850% 5/20/08 .......................... 1,000,000 1,035,435
Ralicar Trust No. 1992-1
7.750% 6/1/04 ........................... 1,381,340 1,447,534
World Omni 1995-A Automobile Lease
Securitization Trust, Class A
6.050% 11/25/01 ......................... 596,740 596,925
Worid Omni 1996-A Automobile Lease
Securitization Trust, Class Al
6.300% 6/25/02 .......................... 803,137 804,888
----------- -----------
Total Asset Backed Securities
(Cost $13,664,504) ...................... 13,457,851 13,811,821
----------- -----------
Corporate Debt -- 49.31%
AirTouch Communications, Inc.
7.500% 7/15/06 .......................... 1,500,000 1,609,635
American West Airlines 1996-1, Class A
6.850% 7/2/09 ........................... 1,733,154 1,757,904
American Airlines, Inc.
9.780% 11/26/11 ......................... 1,951,111 2,342,503
AMR Corporation
9.000% 8/1/12 ........................... 1,000,000 1,179,800
Analog Devices, Inc.
6.625% 3/1/00 ........................... 1,000,000 1,006,960
Archer - Daniels Midland
6.750% 12/15/27 ......................... 750,000 776,048
Associates Corporation of North America
7.875% 9/80/01 .......................... 2,000,000 2,103,540
Atlantic Richfield Company
7.770% 2/13/02 .......................... 3,000,000 3,171,780
Barrick Gold Corporation
7.500% 5/01/07 .......................... 2,000,000 2,140,100
Bell Atlantic Financial Services, Inc.
6.610% 2/4/00 ........................... 2,000,000 2,023,100
BHP Finance (USA) Umited
6.420% 8/1/26 ........................... 2,000,000 1,997,320
Boston Scientific
6.625% 3/15/05 .......................... 1,500,000 1,515,870
Carlisle Companies, Inc.
7.250% 1/15/07 .......................... 1,500,000 1,572,030
Celulosa Arauco Constitution
6.950% 9/15/05 .......................... 1,000,000 959,210
Champion International Corporation
6.400% 2/15/26 .......................... 1,500,000 1,550,160
CITGO Petroleum Corporation
7.875% 5/15/06 .......................... 750,000 791,633
Columbia Gas System, Inc.
6.610% 11/28/02 ......................... 2,000,000 2,022,700
Corncast Cablevision-PH
8.375% 5/1/07 ........................... 1,250,000 1,397,938
Commercial Credit Company
7.750% 3/1/05 ........................... 3,000,000 3,262,890
Continental Airlines, Inc. Series 1996-B
7.820% 10/15/13 ......................... 1,441,648 1,575,793
Continental Airlines, Inc. Series 1996-2B
8.560% 7/2/14 .......................... 948,919 1,095,479
Corning Glass Works
8.875% 3/15/16 .......................... 500,000 620,125
CSX Corporation
7.250% 5/1/27 ........................... 2,000,000 2,258,180
Dana Corporation
6.500% 3/15/08 .......................... 750,000 761,738
Dover Corporation
6.250% 6/1/08 ........................... 750,000 756,533
Dover Corporation
6.650% 6/1/08 ........................... 750,000 763,898
Dow Capital
7.125% 1/15/03 .......................... 4,000,000 4,146,360
English China Clays Delaware Inc.
7.375% 10/1/02 .......................... 1,000,000 1,041,460
Equifax, Inc.
6.500% 6/15/03 .......................... 1,250,000 1,257,388
ERAC USA Finance Company 144A
6.750% 5/15/07 .......................... 2,000,000 2,020,140
FBG Finance Ltd. 144A
7.875% 6/1/16 ........................... 1,250,000 1,418,263
First Brands Corporation
7.250% 3/1/07 ........................... 500,000 516,310
Fletcher Challenge Ltd.
6.750% 3/24/05 .......................... 500,000 501,385
Fletcher Challenge Ltd. .......
7.750% 6/20/06 .......................... 1,500,000 1,584,090
Foster Wheeler Corporation
6.750% 11/15/05 ......................... 2,000,000 1,989,020
General American Transportation
Corporation 6.750% 3/1/06 ............... 2,000,000 2,036,260
General Electric Capital Corporation
8.750% 5/21/07 ......................... 1,000,000 1,185,000
General Electric Capital Corporation
6.500% 11/1/06 ......................... 250,000 258,128
</TABLE>
18
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 2A)
-------- --------
BONDS AND NOTES (Continued)
Corporate Debt (Continued)
General Mills
8.900% 6/15/06 .................................... $ 1,000,000 $ 1,168,680
Hershey Foods Co.
7.200% 8/15/27 .................................... 1,500,000 1,669,440
Hilton Hotels Corporation
7.000% 7/15/04 .................................... 900,000 888,138
ICI Wilmington
7.050% 9/15/07 .................................... 750,000 788,903
IMCERA Group, Inc.
6.000% 10/15/03 ................................... 2,000,000 1,912,140
Interpool Inc.
7.350% 8/1/07 ..................................... 500,000 503,866
Korea Development Bank
7.375% 9/17/04 .................................... 500,000 412,660
Lasmo USA Inc.
6.750% 12/15/07 ................................... 2,000,000 1,979,820
Leucadia National Corporation
7.750% 8/15/13 .................................... 2,000,000 2,124,080
Lockheed Martin Corporation
7.700% 6/15/08 .................................... 1,500,000 1,648,185
Mapco, Inc.
7.250% 3/1/09 ..................................... 1,500,000 1,591,935
Merrill Lynch LTG INV
6.310% 11/15/26 ................................... 1,721,546 1,732,306
Millipore Corporation
7.500% 4/1/07 ..................................... 1,000,000 1,069,550
Mobil Corporation
8.625% 8/15/21 .................................... 2,000,000 2,560,120
Morgan Stanley Group
6.875% 3/1/07 ..................................... 500,000 518,080
Newmont Mining Corporation
8.625% 4/1/02 ..................................... 2,000,000 2,138,960
News America Holdings Incorporated
9.250% 2/1/13 ..................................... 2,000,000 2,432,480
Norfolk Southem Corporation
7.050% 5/01/37 .................................... 2,500,000 2,654,725
Penske Truck Leasing Co., LP.
7.750% 5/15/99 .................................... 1,250,000 1,269,788
Polaroid Corporation
8.000% 3/15/99 .................................... 1,000,000 1,011,510
Ralston Purina Company
7.750% 10/1/15 .................................... 3,000,000 3,344,040
Raytheon Co.
6.750% 8/15/07 .................................... 500,000 512,715
Rolls-Royce Capital Inc.
7.125% 7/29/03 .................................... 1,500,000 1,555,440
Scholastic Corporation
7.000% 12/15/03 ................................... 1,500,000 1,548,720
Schwab Charles Corporation
6.250% 1/23/03 .................................... 2,000,000 2,013,660
Sears Roebuck Acceptance
6.750% 9/15/05 .................................... 1,500,000 1,544,655
Textron Inc.
9.550% 3/19/01 .................................... 1,000,000 1,085,300
Thomas & Betts Corporation
8.250% 1/15/04 .................................... 1,500,000 1,630,455
Time Warner, Inc.
6.100% 12/30/01 ................................... 500,000 497,560
Travelers Funding Ltd.
6.300% 2/15/14 .................................... 1,400,000 1,364,818
United Air Unes, Inc.
10.110% 2/19/06 ................................... 453,636 515,834
US Air, Inc.
7.500% 10/15/09 ................................... 939,595 995,792
Valassis Communications, Inc.
9.550% 12/1/03 .................................... 2,000,000 2,244,540
Valero Energy Corporation
6.750% 12/15/02 ................................... 1,000,000 1,011,660
Worldcom Inc.
7.750% 4/1/07 ..................................... 1,000,000 1,084,660
Worldcom Inc.
9.375% 1/15/04 .................................... 871,000 914,829
------------ ------------
Total Corporate Debt
(Cost $106,143,051) ................................ 104,610,609 110,906,715
------------ ------------
U.S. Government Agency Obligations - 18.75%
Federal Home Loan Mortgage
Corporation (FHLMC) - 1.89%
Collateralized Mortgage Obligations - 1.83%
FHLMC Series 1322 Class G
7.500% 2/15/07 .................................... 2,000,000 2,044,360
FHLMC Series 1460 Class H
7.000% 5/15/07 .................................... 2,000,000 2,068,740
------------ ------------
4,000,000 4,113,100
Pass-Through Securities - .06%
FHLMC
9.000% 3/1/17 ..................................... 123,198 130,666
------------ ------------
4,123,198 4,243,766
------------ ------------
Federal National Mortgage
Association (FNMA) - 5.19%
Collateralized Mortgage Obligations - 4.93%
FNMA Series 1993-191 Class PD
5.400% 3/25/04 .................................... 403,287 401,646
FNMA Series 1993-221 Class D
6.000% 12/25/08 ................................... 1,000,000 1,002,180
FNMA Series 1993-134 Class GA
6.500% 2/25/07 .................................... 2,000,000 2,029,360
FNMA Series 1996-54 Class C
6.000% 9/25/08 .................................... 4,000,000 3,925,720
FNMA Series 1993-186 Class G
6.250% 3/25/08 .................................... 3,700,000 3,724,272
------------ ------------
11,103,287 11,083,178
Pass-Through Securities - .26%
FNMA
9.000% 5/1/09 ..................................... 551,896 584,723
------------ ------------
11,655,183 11,667,901
------------ ------------
Government National Mortgage
Association (GNMA) - 9.90%
Collateralized Mortgage Obligations - .32%
JHM Acceptance Corporation, Senes E, Class 5
8.960% 4/1/19 ..................................... 688,066 709,569
------------ ------------
19
<PAGE>
MML Managed Bond Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 2A)
-------- --------
BONDS AND NOTES (Continued)
Pass-Through Securities -- 9.58%
GNMA
8.000% 12/15(03-- 4/15/08 ......................... $ 4,824,443 $ 5,083,034
GNMA
8.000% 1/15/09 .................................... 1,609,278 1,695,535
GNMA
7.500% 3/15/17 - 7/15/17 .......................... 3,915,064 4,058,199
GNMA
7.000% 8/15/23 - 11/15/23 ......................... 1,864,009 1,896,630
GNMA - ARMS
5.500% 10/20/27 - 12/20/27 ........................ 2,658,715 2,682,803
GNMA - ARMS
6.000% 8/20/25-- 11/20/25 ......................... 1,026,606 1,042,642
GNMA - ARMS
6.000% 5/20/27 - 12/20/27 ......................... 5,016,822 5,092,452
----------- -----------
20,914,937 21,551,295
----------- -----------
21,603,003 22,260,864
----------- -----------
U.S. Government Guaranteed Notes - 1.77%
1994-A Atlanta, GA
5.780% 8/1/98 ..................................... 130,000 130,020
1994-A Baxter Springs, KS
5.780% 8/1/98 ..................................... 700,000 700,105
1994-A Boston, MA
5.780% 8/1/98 ..................................... 745,000 745,112
1994-A Detroit, Ml
5.780% 8/1/98 ..................................... 385,000 385,058
1994-A Egg Harbor, NJ
5.780% 8/1/98 ..................................... 260,000 260,039
1994-A Kansas City, MO
5.780% 8/1/98 ..................................... 550,000 550,083
1994-A Mayaguez, PR
5.780% 8/1/98 ..................................... 295,000 295,044
1994-A Rochester, NY
5.780% 8/1/98 ..................................... 300,000 300,045
1994-A Sacramento, CA
5.780% 8/1/98 ..................................... 55,000 55,008
1994-A Saginaw, Ml
5.780% 8/1/98 ..................................... 315,000 315,047
1994-A Youngstown, OH
5.780% 8/1/98 ..................................... 265,000 265,040
---------- ----------
4,000,000 4,000,601
---------- ----------
Total U.S. Government Agency
Obligations (Cost $41,292,669) .................... 41,381,384 42,173,132
---------- ----------
U.S. Treasury Obligations - 18.90%
U.S. Treasury Bonds - 18.90%
U.S. Treasury Bond
7.250% 11/15/16 .................................. 2,950,000 3,541,387
U.S. Treasury Bond
6.125% 12/31/01 .................................. 1,750,000 1,781,710
U.S. Treasury Bond
6.250% 2/28/02 ................................... 2,000,000 2,045,940
.S. Treasury Bond
5.750% 9/30/99 ................................... 3,000,000 3,007,980
U.S. Treasury Bond
5.625% 11/30/99 .................................. 3,200,000 3,204,000
U.S. Treasury Bond
8.000% 5/15/01 ................................... 1,500,000 1,597,035
U.S. Treasury Bond
7.875% 11/15/04 .................................. 3,200,000 3,593,984
U.S. Treasury Bond
7.500% 2/15/05 ...,,,............................. 2,250,000 2,490,458
U.S. Treasury Bond
6.180% 5/15/16 ................................... 58,750,000 21,238,125
------------ ------------
Total U.S. Treasury Obligations
(Cost $40,025,176) ................................ 78,600,000 42,500,619
------------ ------------
Total Bonds and Notes
(Cost $201,125,400) ............................... $238,049,844 209,392,278
============ ============
SHORT-TERM INVESTMENTS - 7.34%
Commercial Paper
Harris Corp
5.959% 7/6/98 .................................... 4,830,000 4,826,009
Pennsylvania Power & Light
5.790% 7/8/98 .................................... 2,010,000 2,007,745
Rayonier
7.004% 7/2/98 .................................... 5,670,000 5,670,000
TextronFinancial Corp
7.004% 7/2/98 .................................... 4,000,000 3,999,222
------------ ------------
Total Short-Term Investments
(Cost $16,502,976) ................................ $ 16,510,000 16,502,976
============ ============
Total Investments
(Cost $217,628,376) ........................100.44% $225,895,254
======= ============
Table of Open Forward Commitment Contracts
Forward Aggregate Expiration
Commitment Face Value of of Unrealized
Contracts Contracts Contracts Appreciation
--------- --------- --------- ------------
United States of America
5.375% due 2/15/01 4,8000,000 August 1998 317
------------
Total Forward Commitment Contracts 317
============
(a) Federal Income Tax Information: At
June 30 1998 the net unrealized
depreciation on investments based on
cost of $222,446,618 for federal income
tax purposes is as follows:
Aggregate gross unrealized appreciation for
all investments and forward commitments in
which there is an excess of market value over
tax cost .............................................. $ 8,922,888
Aggregate gross unrealized depreciation for
all investments and forward commitments in
which there is an excess of tax cost over
market value ............................................. (620,622)
------------
Net unrealized appreciation ............................ $ 8,302,266
============
See Notes to Financial Statements.
20
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
Number Market
of Value
Shares (Note 2A)
-------- --------
EQUITIES - 58.06%
Aerospace & Defense - 2.06%
Raytheon Company (Class B) ......................... 410,000 $ 24,241,250
Raytheon Company (Class A) ......................... 142,000 8,182,750
TRW, Inc ........................................... 485,000 26,493,125
------------ ------------
1,037,000 58,917,125
------------ ------------
Agribusiness - .54%
Archer-Daniels-Midland Company ..................... 789,915 15,304,602
------------ ------------
Apparel, Textiles, Shoes - .72%
VF Corporation ..................................... 400,000 20,600,000
------------ ------------
Automotive & Parts - 2.55%
Ford Motor Company ................................. 278,000 16,402,000
Genuine Parts Company .............................. 685,500 23,692,251
Goodyear Tire & Rubber Company ..................... 505,000 32,540,685
------------ ------------
1,468,500 72,634,936
------------ ------------
Banking, Savings & Loans - 3.65%
The Bank of New York Company,
Incorporated ...................................... 445,000 27,005,715
Comerica, Incorporated ............................. 355,500 23,551,875
Norwest Corporation ................................ 504,000 18,837,000
Pacific Century Finance ............................ 657,000 15,768,000
Wachovia Corporation ............................... 260,000 21,970,000
------------ ------------
2,221,500 107,132,590
------------ ------------
Beverages - .82%
Brown-Forman Corporation (Class B) ................. 364,500 23,419,125
------------ ------------
Chemicals - 3.61%
Air Products and Chemicals ......................... 420,000 16,800,000
Bemis Corp ......................................... 318,500 13,018,688
Engelhard Corp. .................................... 900,000 18,225,000
The Lubnzol Corporation ............................ 300,300 9,084,075
Nalco Chemical Company ............................. 515,000 18,089,375
Rohm & Haas ........................................ 268,000 27,855,116
------------ ------------
2,721,800 103,072,254
------------ ------------
Communications - .99%
GTE Corporation .................................... 509,700 28,352,062
------------ ------------
Computers & Office Equipment - 4.64%
Electronic Data Systems ............................ 352,000 14,080,000
Hewlett-Packard Company ............................ 536,000 32,093,000
International Business Machines
Corporation ....................................... 272,000 31,228,864
Pitney Bowes, Inc. ................................. 574,000 27,623,750
Xerox Corporation .................................. 271,000 27,540,375
------------ ------------
2,005,000 132,565,989
------------ ------------
Containers - .80%
Crown Cork & Seal .................................. 317,500 15,081,250
Temple-Inland, Inc. ................................ 145,000 7,811,875
------------ ------------
462,500 22,893,125
------------ ------------
Cosmetic & Personal Care - .96%
Kimberly-Clark Corporation ......................... 600,000 27,525,000
------------ ------------
Electric Utilities - 1.67%
Dominion Resources ................................. 400,000 16,300,000
SCANA Corporation .................................. 579,200 17,267,110
Teco Energy Inc. ................................... 523,000 14,022,676
------------ ------------
1,502,200 47,589,786
------------ ------------
Electrical Equipment & Electronics - 3.93%
AMP, Inc. .......................................... 700,000 24,062,500
General Electric Company ........................... 548,000 49,868,000
Honeywell, Inc. .................................... 243,400 20,338,991
Hubbell, Incorporated (Class B) .................... 431,880 17,977,005
------------ ------------
1,923,280 112,246,496
------------ ------------
Energy - 4.21%
Amoco Corporation .................................. 664,000 27,639,000
ENI, SPA - ADR ..................................... 278,800 18,122,000
Kerr-McGee Corporation ............................. 190,000 10,996,250
Mobil Corporation .................................. 360,000 27,585,000
Occidental Petroleum Corp. ......................... 568,300 15,344,100
Unocal Corporation ................................. 578,000 20,663,500
------------ ------------
2,639,100 120,349,850
------------ ------------
Financial Services -1.49%
American Express Company ........................... 180,000 20,520,000
American General Corp. ............................. 310,000 22,067,970
------------ ------------
490,000 42,587,970
------------ ------------
Foods - 2.34%
Bestfoods .......................................... 306,000 17,766,972
ConAgra, Inc. ...................................... 1,038,700 32,913,287
General Mills Inc. ................................. 235,000 16,068,125
------------ ------------
1,579,700 66,748,384
------------ ------------
Forest Products & Paper - .91%
Westvaco Corporation ............................... 285,012 8,051,589
Weyerhaeuser Company ............................... 386,500 17,851,276
------------ ------------
671,512 25,902,865
------------ ------------
Hardware & Tools - .50%
The Stanley Works .................................. 342,000 14,214,204
------------ ------------
Healthcare - 5.35%
Becton, Dickinson and Company ...................... 488,000 36,328,500
Bristol-Myers Squibb Company ....................... 546,000 62,755,602
Pharmacia & Upjohn Inc. ............................ 415,000 19,141,875
Schering-Plough Corp. .............................. 376,000 34,451,000
------------ ------------
1,805,000 152,676,977
------------ ------------
Industrial Distribution - .73%
W. W. Grainger, Inc. ............................... 416,000 20,721,792
------------ ------------
Industrial Transportation - 1.57%
Burlington Northern ................................ 229,200 22,504,460
Norfolk Southern Corporation ....................... 752,800 22,442,474
------------ ------------
982,000 44,946,934
------------ ------------
Insurance - 3.69%
Cigna Corporation .................................. 131,700 9,087,300
Jefferson-Pilot Corporation ........................ 264,000 15,295,368
Marsh & McLennan Companies, Inc. ................... 442,500 26,743,373
MBIA, Inc. ......................................... 351,000 26,281,125
SAFECO Corporation ................................. 618,000 28,080,066
------------ ------------
1,807,200 105,487,232
------------ ------------
Machinery & Components - .69%
Dover Corporation .................................. 572,000 19,591,000
------------ ------------
Metals & Mining - .44%
USX-Marathon Group ................................. 364,300 12,489,861
------------ ------------
21
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note 2A)
------ ---------
<S> <C> <C>
EQUITIES (Continued)
Miscellaneous - 1.36%
Armstrong World Industries ............... 275,000 $ 18,528,125
Minnesota Mining &
Manufacturing Company ................... 245,500 20,176,909
--------------- --------------
520,500 38,705,034
--------------- --------------
Publishing & Printing - 1.14%
McGraw-Hill Companies, Inc. .............. 400,000 32,624,800
--------------- --------------
400,000 32,624,800
--------------- --------------
Retail - 1.66%
The May Department Stores Company ........ 322,000 21,091,000
Sears Roebuck and Company ................ 430,300 26,274,979
--------------- --------------
752,300 47,365,979
--------------- --------------
Retail - Grocery - 1.59%
Albertson's, Inc. ........................ 499,200 25,864,550
American Stores Company .................. 805,400 19,480,210
--------------- --------------
1,304,600 45,344,760
--------------- --------------
Telephone Utilities - 2.16%
Ameritech Corporation .................... 541,000 24,277,375
Frontier Corporation ..................... 706,000 22,239,000
Pinnacle West Capital .................... 337,100 15,169,500
--------------- --------------
1,584,100 61,685,875
--------------- --------------
Tobacco - 1.19%
Fortune Brands, Inc. ..................... 460,600 17,704,082
UST, Inc. ................................ 607,600 16,405,200
--------------- --------------
1,068,200 34,109,282
--------------- --------------
Total Equities
(Cost $930,461,662) ...................... 33,304,407 1,657,815,889
--------------- --------------
<CAPTION>
Principal
Amount
---------
<S> <C> <C>
BONDS AND NOTES - 19.75%
Asset Backed Securities - 1.16%
Auto Receivables
California Infrastructure SCE-1, 1997-1,
Class A5
6.280% 9/25/05 .......................... 650,000 662,422
California Infrastructure SDG&E-1, 1997-1,
Class A5
6.190% 9/25/05 .......................... 500,000 507,825
California Infrastructure PG&E-1, 1997-1,
Class A6
6.320% 9/25/05 .......................... 600,000 610,493
Capita Equipment Receivables Trust 1996-1,
Class A4
6.280% 6/15/00 .......................... 4,000,000 4,015,920
Case Equipment Loan Trust, 1998 Class A4
5.830% 2/15/05 .......................... 3,500,000 3,500,735
Caterpillar Financial Asset Trust, 1997-B,
Class A3
6.160% 9/25/03 .......................... 3,100,000 3,115,252
Chase Manhattan Auto Grantor Trust 1996-B
Class A
6.140% 10/16/06 ......................... 4,500,000 4,511,070
Chase Manhattan Auto Owner Trust 1998-A,
Class A4
5.800% X ................................ 3,750,000 3,750,150
Ford Credit Auto Owner Trust 1996-B,
Class A-4
6.300% 1/15/01 .......................... 6,000,000 6,030,000
Metlife Capital Equipment Loan Trust
Series 1997-A, Class A
6.850% 5/20/08 .......................... 2,500,000 2,588,588
Railcar Trust No. 1992-1
7.750% 6/1/04 ........................... 1,250,113 1,310,017
World Omni 1995-A Automobile Lease
Securitization Trust, Class A
6.050% 11/25/01 ......................... 696,196 696,412
World Omni 1996-A Automobile Lease
Securitization Trust, Class Al
6.300% 6/25/02 .......................... 1,775,356 1,779,226
--------------- --------------
Total Asset Backed Securities
(Cost $32,893,987) ..................... 32,821,665 33,078,110
--------------- --------------
Corporate Debt - 8.00%
AirTouch Communications, Inc.
7.500% 7/15/06 .......................... 4,000,000 4,292,360
American Airlines, Inc.
9.780% 11/26/11 ......................... 4,877,777 5,856,259
American West Airlines
6.850% 07/02/09 ......................... 4,209,089 4,269,195
AMR Corporation
9.000% 8/1/12 ........................... 2,000,000 2,359,600
Analog Devices, Inc.
6.625% 3/1/00 ........................... 1,500,000 1,510,440
Archer-Daniels Midland
6.750% 8/1/01 ........................... 1,650,000 1,707,305
Associates Corporation of North America
6.750% 8/1/01 ........................... 4,000,000 4,076,120
Associates Corporation of North America
6.500% 8/15/02 .......................... 2,000,000 2,028,080
Barrick Gold Corporation
7.500% 5/1/07 ........................... 4,250,000 4,547,712
Bell Atlantic Financial Services, Inc.
6.610% 2/4/00 ........................... 1,000,000 1,011,550
BHP Finance (USA) Limited
6.420% 3/1/26 ........................... 4,500,000 4,493,970
Boston Scientific
6.250% 3/15/05 .......................... 3,800,000 3,840,204
C I T Group Holdings
6.375% 10/1/02 .......................... 4,000,000 4,037,680
CSX Corporation
7.250% 5/1/27 ........................... 4,500,000 5,080,905
Carlisle Companies Inc.
7.250% 1/15/07 .......................... 2,760,000 2,892,535
Celulosa Arauco Constitucion
6.950% 9/15/05 .......................... 2,500,000 2,398,025
Champion International Corporation
6.400% 2/15/26 .......................... 3,500,000 3,617,040
Charles Schwab Corporation
6.250% 1/23/03 .......................... 2,500,000 2,517,075
CITGO Petroleum Corporation
7.875% 5/15/06 .......................... 1,000,000 1,055,510
Columbia Gas System, Inc.
6.610% 11/28/02 ......................... 3,000,000 3,034,050
Comcast Cablevision
8.375% 5/01/07 .......................... 2,500,000 2,795,875
</TABLE>
22
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
BONDS AND NOTES (Continued)
<S> <C> <C>
Corporate Debt (Continued)
Commerciai Credit Company
7.750% 3/1/05 ............................ $ 2,500,000 $ 2,719,075
Continental Airlines, Inc. Series 1996-B
7.820% 10/15/13 .......................... 1,922,197 2,101,058
Continental Airlines, Inc. Series 1996-2B
8.560% 7/2/14 ............................ 1,660,608 1,917,089
Corning Glass Works, Inc.
8.875% 3/15/16 ........................... 500,000 620,125
Dana Corporation
6.500% 3/15/08 ........................... 1,750,000 1,777,387
Delta Air Lines, Inc.
8.540% 1/2/07 ............................ 4,027,752 4,436,650
Dover Corp X
6.250% 6/1/08 ............................ 2,000,000 2,017,420
Dover Corp Debenture
6.650% 6/1/28 ............................ 2,000,000 2,037,060
English China Clays Delaware Inc.
7.375% 10/1/02 ........................... 1,000,000 1,041,460
ERAC USA Finance Company 144A
6.750% 5/15/07 ........................... 6,000,000 6,060,420
E W Scripps Company
6.625% 10/15/07 .......................... 5,000,000 5,131,150
FBG Finance Ltd. 144A
7.875% 6/1/16 ............................ 4,000,000 4,538,440
Fletcher Challenge Ltd.
6.750% 3/24/05 ........................... 2,000,000 2,005,540
Fletcher Challenge Ltd.
7.750% 6/20/06 ........................... 2,000,000 2,112,120
Ford Motor Corporation
8.450% 7/15/06 ........................... 1,500,000 1,512,825
Foster Wheeler Corporation
6.750% 11/15/05 .......................... 2,000,000 1,989,020
GTE Corporation
9.100% 6/1/03 ............................. 575,000 644,909
General American Transportation Corporation
6.750% 3/1/06 ............................ 3,000,000 3,054,390
General Electric Capital Corporation
8.750% 5/21/07 ........................... 1,500,000 1,777,500
General Electric Capital Corporation
6.500% 11/1/06 ........................... 1,250,000 1,290,638
General Mills
8.900% 6/15/06 ........................... 2,250,000 2,629,530
General Motors Corporation
9.125% 7/15/01 ........................... 1,500,000 1,618,650
Goldman Sachs Group, LP. 144A
6.200% 2/15/01 ........................... 4,000,000 4,030,440
Hershey Food Company
7.200% 8/15/27 ........................... 5,300,000 5,898,688
Hilton Hotels Corporation
7.000% 7/15/04 ........................... 1,600,000 1,578,912
I C I Wilmington
7.050% 9/15/07 ........................... 2,500,000 2,629,675
Interpool Inc.
7.350% 8/1/07 ............................ 2,000,000 2,015,464
Korean Development Bank
7.500% 3/31/07 ........................... 1,500,000 1,237,980
Leucadia National Corporation
7.750% 8/15/13 ........................... 3,000,000 3,186,120
Lasmo USA Inc.
6.750% 12/15/07 .......................... 6,000,000 5,939,460
Lockheed Martin Corporation
7.700% 6/15/08 ........................... 4,000,000 4,395,160
Mapco, Inc.
7.250% 3/1/09 ............................ 3,750,000 3,979,838
Millipore Corporation
7.500% 4/1/07 ............................ 4,250,000 4,545,588
Mobil Corporation
8.625% 8/18/21 ........................... 4,500,000 5,760,270
Morgan Stanley Group
6.875% 3/1/07 ............................ 6,500,000 6,735,040
Newmont Mining Corporation
8.625% 4/1/02 ............................ 5,000,000 5,347,400
News America Holdings Incorporated
9.250% 2/1/13 ............................ 4,000,000 4,864,960
Norfolk Southern Corporation
7.050% 5/1/37 ............................ 6,000,000 6,371,340
North Finance (Bermuda) Limited 144A
7.000% 9/15/05 ........................... 4,000,000 4,149,080
Ralston Purina Company
7.750% 10/1/15 ........................... 2,000,000 2,229,360
Raytheon Company
6.750% 8/15/07 ........................... 2,700,000 2,768,661
Rolls-Royce Capital Inc.
7.125% 7/29/03 ........................... 2,000,000 2,073,920
Scholastic Corporation
7.000% 12/15/03 .......................... 3,000,000 3,097,440
TCI Communications, Inc.
7.550% 9/2/03 ............................ 3,000,000 3,174,990
Thomas & Betts Corporation
8.250% 1/15/04 ........................... 1,000,000 1,086,970
Time Warner, Inc.
7.750% 6/15/05 ........................... 3,000,000 3,219,780
Time Warner, Inc.
6.100% 12/30/01 .......................... 4,750,000 4,726,820
Travelers Funding Ltd
6.300% 2/15/14 ........................... 3,400,000 3,314,558
US Air, Inc.
7.500% 10/15/09 .......................... 939,595 995,792
Valassis Communications, Inc.
9.550% 12/1/03 ........................... 2,000,000 2,244,540
Valero Energy Corporation
6.750% 12/12/02 .......................... 2,000,000 2,023,320
Worldcom Inc.
7.750% 4/1/07 ............................ 2,500,000 2,711,650
Worldcom Inc.
9.375% 1/15/04 ........................... 1,525,000 1,601,738
------------ ------------
Total Corporate Debt
(Cost $217,692,222) 215,697,018 228,388,900
------------ ------------
Non-U.S. Government Agency Obligations -- .15%
Pass-Through Securities -- .15%
Merrill Lynch Mortgage Inv ctf 1998 Class Al
6.310% 11/15/26 4,426,833 4,454,500
------------ ------------
Total Non-US Government
Agency Obligations
(Cost $4,427,524) 4,426,833 4,454,500
------------ ------------
</TABLE>
23
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Market
Principal Value
Amount (Note 2A)
--------- ---------
BONDS AND NOTES (Continued)
<S> <C> <C>
U.S. Government Agency Obligations - 3.83%
Federal Home Loan Mortgage
Corporation (FHLMC) - .44%
Collateralized Mortgage Obligations - .42%
FHLMC Series 1322 Class G
7.500% 2/15/07........................ $ 5,000,000 $ 5,110,900
FHLMC Series 1460 Class H
7.000% 5/15/07........................ 1,789,000 1,850,488
FHLMC Series 1490 Class PG
6.300% 5/15/07........................ 5,000,000 5,032,800
------------ ------------
11,789,000 11,994,188
Pass-Through Securities - .02%
FHLMC
9.000% 3/1/17......................... 369,595 391,999
------------ ------------
12,158,595 12,386,187
Federal National Mortgage
Association (FNMA) - 1.26%
Collateralized Mortgage Obligations - .86%
FNMA Series 1993-134 Class GA
6.500% 2/25/07........................ 5,000,000 5,070,300
FNMA Series 1993-71 Class PG
6.250% 7/25/07........................ 8,000,000 8,042,480
FNMA Series 1993-191 Class PD
5.400% 3/25/04........................ 403,287 401,646
FNMA Series 1993-175 Class PU
6.350% 9/25/08........................ 7,015,000 7,074,136
FNMA Series 1996-54 Class C
6.000% 9/25/08........................ 4,000,000 3,925,720
------------ ------------
24,418,287 24,514,282
Pass-Through Securities - .40%
FNMA
8.000% 5/1/13......................... 1,396,498 1,416,189
FNMA
6.500% 6/25/08........................ 5,000,000 5,073,400
FNMA
6.250% 3/25/08........................ 5,000,000 5,032,800
------------ ------------
11,396,498 11,522,389
------------ ------------
35,814,785 36,036,671
------------ ------------
Government National Mortgage
Association (GNMA) - 1.47%
Collateralized Mortgage Obligations - .05%
JHM Acceptance Corporation, Series E,
Class 5
8.960% 4/1/19......................... 1,376,133 1,419,137
------------ ------------
Pass-Through Securities - 1.42%
GNMA
7.000% 4/5/23 - 11/15/23........... 4,667,875 4,749,563
GNMA
7.500% 9/15/16 - 10/15/17.......... 3,231,249 3,349,383
GNMA
8.000% 1/15/07 - 5/15/08........... 8,653,652 9,117,487
GNMA
9.000% 8/15/08 - 9/15/09........... 1,577,308 1,718,950
GNMA - ARMS
5.500% 10/20/27 - 12/20/27......... 9,144,242 9,227,089
GNMA - ARMS
6.000% 8/20/25 - 8/20/27........... 12,228,144 12,415,178
------------ ------------
39,502,470 40,577,650
------------ ------------
40,878,603 41,996,787
------------ ------------
U.S. Government Guaranteed Notes - .66%
1994-A Abilene, TX
5.780% 8/1/98......................... 70,000 70,011
1994-A Bakersfield, CA
5.780% 8/1/98......................... 245,000 245,037
1994-A Barberton, OH
5.780% 8/1/98......................... 75,000 75,011
1994-A Buffalo, NY
5.780% 8/1/98......................... 375,000 375,056
1991-A Caguas, PR
8.740% 8/1/01......................... 280,000 301,610
1991-A Council Bluffs, IA
8.740% 8/1/01......................... 155,000 166,963
1994-A Cumberland, MD
5.780% 8/1/98......................... 55,000 55,008
1994-A Elizabeth, NJ
5.780% 8/1/98......................... 75,000 75,011
1994-A Erie, PA
5.780% 8/1/98......................... 70,000 70,011
1994-A Euclid, OH
5.780% 8/1/98......................... 105,000 105,016
1994-A Fairfax County, VA
5.780% 8/1/98......................... 110,000 110,017
1991-A Fairfax County, VA
8.740% 8/1/01......................... 85,000 91,560
1991-A Fajardo, PR
8.740% 8/1/01......................... 210,000 226,207
1994-A Fort Myers, FL
5.780% 8/1/98......................... 135,000 135,020
1991-A Gasden, AL
8.740% 8/1/01......................... 100,000 107,718
1994-A Lawrence, MA
5.780% 8/1/98......................... 40,000 40,006
1991-A Lorain, OH
8.740% 8/1/01......................... 30,000 32,315
1994-A Los Angeles County, CA
5.780% 8/1/98......................... 175,000 175,026
1994-A Mayaguez, PR
5.780% 8/1/98......................... 65,000 65,010
1991-A Mayaguez, PR
8.740% 8/1/01......................... 150,000 161,576
1994-A Mobile, AL
5.780% 8/1/98......................... 205,000 205,031
1994-A Montgomery County, PA
5.780% 8/1/98......................... 230,000 230,035
1994-A New Orleans, LA
5.780% 8/1/98......................... 175,000 175,026
1994-A Ocean Shores, WA
5.780% 8/1/98......................... 110,000 110,017
1994-A Pasadena, CA
5.780% 8/1/98......................... 140,000 140,021
1994-A Providence, RI
5.780% 8/1/98......................... 50,000 50,008
1994-A Reading, PA
5.780% 8/1/98......................... 15,000 15,002
1994-A Reading, PA
5.780% 8/1/98......................... 50,000 50,008
1994-A Roanoke, VA
5.780% 8/1/98......................... 210,000 210,032
1994-A Rochester, NY
5.780% 8/1/98......................... 165,000 165,025
1991-A Rochester, NY
8.650% 8/1/00......................... 4,295,000 4,525,856
</TABLE>
24
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 2A)
--------- ---------
BONDS AND NOTES (Continued)
U.S. Government Guaranteed Notes (Continued)
1994-A Sacramento, CA
5.780% 8/1/98 ............................ $ 80,000 $ 80,012
1994-A Sacramento, CA
5.780% 8/1/98 ............................ 220,000 220,033
1994-A Syracuse, NY
5.780% 8/1/98 ............................ 50,000 50,008
1994-A Tacoma, WA
5.780% 8/1/98 ............................ 155,000 155,023
1994-A Trenton, NJ
5.780% 8/1/98 ............................ 130,000 130,020
1994-A Virginia Beach, VA
5.780% 8/1/98 ............................ 260,000 260,039
1994-A Waterford Township, MI
5.780% 8/1/98 ............................ 55,000 55,008
1994-A West Palm Beach, FL
5.780% 8/1/98 ............................ 105,000 105,016
U.S. Department of Housing and Urban
Development, Series 1995-A
8.240% 8/1/02 ............................ 8,475,000 9,200,206
------------ ------------
17,780,000 18,814,615
------------ ------------
Total U.S. Government Agency Obligations
(Cost $106,275,153) ....................... 106,631,983 109,234,260
------------ ------------
U.S. Treasury Obligations - 6.61%
U.S. Treasury Bonds - 3.88%
U.S. Treasury Bond
7.500% 11/15/16 ................... 46,150,000 55,401,691
U.S. Treasury Bond
8.750% 5/15/17 ................... 41,100,000 55,350,192
------------ ------------
87,250,000 110,751,883
------------ ------------
U.S. Treasury Notes - 2.21%
U.S. Treasury Note
6.375% 1/15/99 .......................... 11,000,000 11,056,760
U.S. Treasury Note
6.500% 5/31/01 .......................... 5,650,000 5,794,753
U.S. Treasury Note
7.125% 2/29/00 .......................... 2,500,000 2,562,500
U.S. Treasury Note
7.750% 1/31/00 .......................... 9,900,000 10,227,887
U.S. Treasury Note
6.375% 5/15/00 .......................... 5,000,000 5,074,200
U.S. Treasury Note
5.875% 1/31/99 .......................... 2,000,000 2,004,380
U.S. Treasury Note
6.375% 5/15/99 .......................... 6,000,000 6,043,140
U.S. Treasury Note
7.250% 5/15/04 .......................... 2,300,000 2,495,500
U.S. Treasury Note
6.250% 2/28/02 .......................... 4,250,000 4,347,623
U.S. Treasury Note
8.000% 5/15/01 .......................... 3,500,000 3,726,415
U.S. Treasury Note
7.500% 2/15/05 .......................... 7,500,000 8,301,525
U.S. Treasury Note
7.250% 8/15/04 .......................... 1,500,000 1,631,955
------------ ------------
61,100,000 63,266,638
------------ ------------
U.S. Treasury Strips - .52%
U.S. Treasury Strip - Principal only
0.000% 2/15/99 ..................... 9,750,000 9,430,102
U.S. Treasury Strip - Principal only
0.000% 2/15/10 ..................... 2,500,000 1,302,250
U.S. Treasury Strip-- Principal only
0.000% 8/15/15 ..................... 2,000,000 755,080
U.S. Treasury Strip - Principal only
0.000% 2/15/17 ..................... 9,500,000 3,284,340
------------ ------------
23,750,000 14,771,772
------------ ------------
Total U.S. Treasury Obligations
(Cost $181,558,217) ................ 172,100,000 188,790,293
------------ ------------
Total Bonds and Notes
(Cost $542,847,103) ................ 531,677,499 563,946,063
------------ ------------
SHORT-TERM INVESTMENTS - 21.90%
Commercial Paper
Aluminum Company of America
5.500% 10/9/98 ....................... 6,425,000 6,322,254
Aristar, Inc.
5.580% 10/23/98 ...................... 11,925,000 11,707,866
Comdisco, Inc.
5.680% 7/17/98 ....................... 6,945,000 6,927,108
Comdisco, Inc.
5.670% 7/15/98 ....................... 4,835,000 4,823,919
Comdisco, Inc.
5.660% 7/13/98 ....................... 9,285,000 9,267,059
Comdisco, Inc.
5.650% 7/29/98 ....................... 6,800,000 6,768,831
Comdisco, Inc.
5.660% 7/24/98 ....................... 12,350,000 12,301,808
Comdisco, Inc.
5.700% 7/27/98 ....................... 10,810,000 10,764,745
Conagra
5.630% 7/7/98 ........................ 4,890,000 4,885,276
Conagra
5.620% 8/6/98 ........................ 3,525,000 3,503,886
Conagra
5.610% 9/3/98 ........................ 10,600,000 10,490,908
Countrywide Home Loans
5.540% 8/17/98 ....................... 11,730,000 11,641,230
Countrywide Home Loans
5.600% 8/4/98 ........................ 5,000,000 4,973,556
Crown Cork & Seal Company, Inc.
5.680% 7/6/98 ........................ 10,000,000 9,991,949
Crown Cork & Seal Company, Inc.
5.720% 8/12/98 ....................... 12,015,000 11,932,392
Crown Cork & Seal Company, Inc.
5.770% 8/31/98 ....................... 6,625,000 6,559,965
Dana Credit Corp.
5.700% 8/11/98 ....................... 15,000,000 14,900,975
Dana Credit Corp.
5.710% 7/29/98 ....................... 3,375,000 3,359,530
Dana Credit Corp.
5.620% 8/6/98 ........................ 6,500,000 6,460,998
Dana Credit Corp.
5.720% 7/21/98 ....................... 9,450,000 9,419,970
Dominion Resources, Inc.
5.670% 8/27/98 ....................... 12,660,000 12,539,934
25
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 2A)
--------- ---------
SHORT-TERM INVESTMENTS (Continued)
Commercial Paper (Continued)
Dominion Resources, Inc.
5.690% 8/26/98............................ $ 10,390,000 $ 10,294,752
Dominion Resources, Inc.
5.700% 8/20/98............................ 11,445,000 11,349,787
Enron Corporation
5.600% 7/24/98............................ 13,795,000 13,741,169
Enron Corporation
5.580% 11/30/98........................... 7,520,000 7,337,828
Enron Corporation
5.580% 9/30/98............................ 12,520,000 12,337,625
Fina Oil and Chemical Co.
5.530% 9/21/98............................ 13,600,000 13,421,273
Finova Capital Corporation
5.540% 7/31/98............................ 10,000,000 9,951,695
Finova Capital Corporation
5.530% 8/7/98............................. 9,110,000 9,055,726
Finova Capital Corporation
5.530% 10/30/98........................... 11,000,000 10,787,517
Finova Capital Corporation
5.530% 10/29/98........................... 14,630,000 14,349,714
Goldman Sachs & Company
5.500% 9/18/98............................ 8,810,000 8,698,407
Hercules Incorporated
5.800% 7/15/98............................ 4,083,000 4,073,791
Hershey Foods Corporation
5.460% 10/2/98............................ 12,700,000 12,510,982
Illinois Power Company DTC
5.660% 7/2/98............................. 6,100,000 6,098,985
Illinois Power Company DTC
5.700% 8/4/98............................. 5,795,000 5,763,275
Mattel Inc.
5.600% 9/22/98............................ 12,200,000 12,040,586
Maytag Inc.
5.750% 8/10/98............................ 1,526,000 1,516,250
ORIX Credit Alliance, Inc.
5.610% 8/25/98............................ 10,000,000 9,911,441
ORIX Credit Alliance, Inc.
5.670% 7/30/98............................ 8,240,000 8,200,241
ORIX Credit Alliance, Inc.
5.700% 9/11/98............................ 5,430,000 5,367,238
ORIX Credit Alliance, Inc.
5.660% 8/5/98............................. 11,550,000 11,483,824
Pennsylvania Power & Light
5.820% 7/20/98............................ 5,500,000 5,483,106
Praxair
5.550% 8/28/98............................ 6,665,000 6,602,319
Praxair
5.570% 8/18/98............................ 10,970,000 10,885,215
Praxair
5.670% 9/4/98............................. 9,475,000 9,375,986
Rayonier Inc.
5.730% 7/7/98............................. 4,700,000 4,695,511
Rite Aid Corporation
5.590% 7/10/98............................ 10,000,000 9,985,508
Rite Aid Corporation
5.620% 7/2/98............................. 3,570,000 3,569,406
Rite Aid Corporation
5.570% 7/14/98............................ 10,670,000 10,647,665
Rite Aid Corporation
5.650% 7/8/98............................. 6,300,000 6,292,781
Rite Aid Corporation
5.670% 7/8/98............................. 5,280,000 5,273,950
Rite Aid Corporation
5.650% 7/22/98............................ 10,380,000 10,344,191
Ryder System Inc.
5.680% 7/28/98............................ 10,145,000 10,101,782
Ryder System Inc.
5.670% 8/13/98............................ 11,825,000 11,740,398
Ryder System Inc.
5.690% 8/19/98............................ 7,000,000 6,943,851
Sonat Inc.
5.590% 7/9/98............................. 10,000,000 9,986,689
Sonat Inc.
5.620% 7/9/98............................. 7,555,000 7,544,944
Sonat Inc.
5.690% 7/1/98............................. 10,725,000 10,725,000
Sonat Inc.
5.620% 7/23/98............................ 9,300,000 9,265,838
Sonat Inc.
5.630% 8/14/98............................ 6,225,000 6,180,897
Textron Financial Corporation
5.630% 7/20/98............................ 4,315,000 4,301,799
Textron Financial Corporation
5.670% 7/7/98............................. 7,000,000 6,993,385
Textron Financial Corporation
5.680% 9/14/98............................ 6,364,000 6,287,420
Textron Financial Corporation
5.700% 9/25/98............................ 10,000,000 9,862,250
Textron Financial Corporation
5.710% 9/10/98............................ 8,375,000 8,279,525
Textron Financial Corporation
5.650% 7/21/98............................ 4,100,000 4,086,750
Union Camp Corp.
5.590% 7/16/98............................ 10,000,000 9,975,042
Union Camp Corp.
5.570% 8/21/98............................ 9,895,000 9,813,744
Union Camp Corp.
5.550% 9/11/98............................ 6,800,000 6,721,403
VF Corp
5.650% 7/28/98............................ 4,545,000 4,525,241
VF Corp
5.650% 8/3/98............................. 9,000,000 8,952,010
VF Corp
5.700% 8/10/98............................ 5,000,000 4,967,797
VF Corp
5.750% 8/24/98............................ 5,000,000 4,956,525
VF Corp
5.670% 8/31/98............................ 2,215,000 2,193,256
-------------- --------------
Total Short-Term Investments
(Cost $625,556,554) $ 630,083,000 625,397,448
-------------- --------------
Total Investments --
(Cost $2,098,865,319) 99.71% $2,847,159,400
======== ==============
See Notes to Financial Statements.
26
<PAGE>
MML Blend Fund
SCHEDULE OF INVESTMENTS (Continued)
June 30, 1998
(Unaudited)
Market
Principal Value
Amount (Note 2A)
--------- ---------
SHORT-TERM INVESTMENTS (Continued)
Commercial Paper (Continued)
(a) Federai Income Tax Information: At
June 30, 1996 the net unrealized
appreciation on investments and
forward commitment contracts based
on cost of $2,098,743,107 for
federal income tax purposes is as
follows:
Aggregate gross unrealized
appreciation for all investments
and forward commitments in which
there is an excess of market value
over tax cost............................................. $ 757,690,275
Aggregate gross unrealized depreciation for
all investments and forward commitments in
which there is an excess of tax cost over
market value.............................................. (9,518,406)
--------------
Net unrealized appreciation.............................. $ 748,171,869
==============
See Notes to Financial Statements.
27
<PAGE>
MML Series Investment Fund
Notes To Financial Statements
(Unaudited)
1. HISTORY
MML Series Investment Fund (the "MML Trust") is registered under the Investment
Company Act of 1940 as a no-load, registered open end, management investment
company. MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund and MML
Blend Fund (the "Funds") are four series of shares of the MML Trust. The MML
Trust is organized as a business trust under the laws of the Commonwealth of
Massachusetts pursuant to an Agreement and Declaration of Trust.
The MML Trust was established by Massachusetts Mutual Life Insurance Company
("MassMutual") for the purpose of providing vehicles for the investment of
assets of various separate investment accounts established by MassMutual and by
life insurance companies which are subsidiaries of MassMutual. Shares of the MML
Trust are not offered to the general public.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by each Fund in the preparation of the financial statements in
conformity with generally accepted accounting principles.
A. Investment Valuation
Equity securities are valued on the basis of valuations furnished by a
pricing service, authorized by the Board of Trustees, 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 sale price, the bid price of the prior
trade date will be used. Long-term bonds are valued on the basis of
valuations furnished by a pricing service, authorized by the Board of
Trustees, which determines valuations taking into account appropriate
factors such as institutional-size, trading in similar groups of securities,
yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data.
For MML Equity Fund, MML Managed Bond Fund, and MML Blend Fund, short-term
securities with more than sixty days to maturity from the date of purchase
are valued at market and short-term securities having a maturity from the
date of purchase of sixty days or less are valued at amortized cost. MML
Money Market Fund's portfolio securities are valued at amortized cost in
accordance with a rule of the Securities and Exchange Commission pursuant to
which MML Money Market Fund must adhere to certain conditions. It is the
intention of MML Money Market Fund to maintain a per share net asset value
of $1.00.
B. Accounting For Investments
Investment transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Premiums and discounts on short-term securities are amortized in
determining interest income.
The cost basis of long-term bonds is not adjusted for amortization of
premium or accrual of discount since MML Managed Bond Fund and MML Blend
Fund do not generally intend to hold such investments until maturity;
however, the MML Trust has elected to accrue for financial reporting
purposes, certain discounts which are required to be accrued for federal
income tax purposes.
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. Federal Income Tax
The MML Trust has established a policy for each of the Funds to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies. As a result, the Funds will not be subject to federal
income tax on any net investment income and any net capital gains to the
extent they are distributed or are deemed to have been distributed to
shareholders. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to the deferral of wash sale losses, and
paydowns on certain mortgage-backed securities. 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 Funds may periodically make reclassifications among
certain of their capital accounts without impacting the net asset value of
the Funds.
28
<PAGE>
Notes To Financial Statements (Continued)
D. Forward Commitments
Each Fund may purchase or sell securities on a "when issued" or delayed
delivery or on a forward commitment basis. The Funds use forward commitments
to manage interest rate exposure or as a temporary substitute for purchasing
or selling particular debt securities. Forward commitments are not used for
purposes of trading. Settlement for securities purchased on a forward
commitment basis can take place a month or more after the date of the
transaction. The Fund generally does not take delivery on these forward
commitments, but such commitments are instead settled with offsetting
transactions. When a forward commitment contract is closed, the Funds record
a realized gain or loss. Forward commitments involve a risk of loss if the
value of the security to be purchased declines prior to the settlement date.
The Funds could also be exposed to loss if they cannot close out their
forward commitments because of an illiquid secondary market, or the
inability of counterparties to perform. The Fund monitors exposure to ensure
counterparties are credit worthy and concentration of exposure is minimized.
The Funds instruct the custodian to segregate liquid high quality assets in
a separate account with a current market value at least equal to the amount
of its forward purchase commitments. The price of the underlying security
and the date when the securities will be delivered and paid for are fixed at
the time the transaction is negotiated. The value of the forward commitment
is determined by management using a commonly accepted pricing model and
fluctuates based upon changes in the value of the underlying security and
market repo rates. Such rates equate the counterparty's cost to purchase and
finance the underlying security to the earnings received on the security and
forward delivery proceeds. The Funds record on a daily basis the unrealized
appreciation/depreciation based upon changes in the value of the forward
commitment. At June 30, 1998, the cost (value) of forward commitments to
purchase securities amounted to $4,783,171 ($4,783,488) for the MML Managed
Bond.
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. CAPITAL LOSS CARRYFORWARD
The accumulated net realized loss on investments for the MML Money Market Fund
results in a capital loss carryforward of $9,249 which is available for federal
income tax purposes to offset future capital gains. Of the total carryforward,
$1,639 expires December 31, 1998, $1,204 expires December 31, 2000, $201 expires
December 31, 2001, $5,364 expires December 31, 2002 and $841 expires December
31, 2003.
The accumulated net realized loss on investments for the MML Managed Bond Fund
results in a capital loss carry forward of $1,163,656 which is available for
federal income tax purposes to offset future capital gains. Of the total
carryforward, $840,829 expires December 31, 2002 and $322,826 expires December
31, 2004.
4. INVESTMENT MANAGEMENT FEE
MassMutual provides all investment advisory, management and administrative
services needed by the Funds. For acting as such, MassMutual receives a
quarterly fee from each Fund at the annual rate of .50% of the first
$100,000,000 of the average daily net asset value of each Fund, .45% of the next
$200,000,000, .40% of the next $200,000,000, and .35% of any excess over
$500,000,000.
MassMutual has entered into investment sub-advisory agreements with David L.
Babson and Company, Inc. ("Babson"), a wholly-owned subsidiary of DLB
Acquisition Corporation which is a controlled subsidiary of MassMutual. The
agreements provide that Babson manage the assets of MML Equity Fund and the
assets of the Equity Sector of the MML Blend Fund. MassMutual pays Babson a
quarterly fee equal to an annual rate of .13% of the average daily net asset
value of MML Equity Fund and the Equity Sector of MML Blend Fund.
MassMutual has agreed, at least through April 30, 1999, to bear the expenses of
the Funds to the extent that the aggregate expenses (excluding each Fund's
management fee, interest, taxes, brokerage commissions and extraordinary
expenses) incurred during each Fund's fiscal year exceed .11% of the average
daily net asset value of each Fund for such year. For the period ended June 30,
1998, MassMutual was not required to reimburse the Funds for any expenses.
29
<PAGE>
Notes To Financial Statements (Continued)
5. PURCHASES AND SALES OF INVESTMENTS AND FORWARD COMMITMENTS
<TABLE>
<CAPTION>
Proceeds
For the Six Months Acquisition from Sales
Ended June 30, 1988 Cost and Maturities
- ------------------- -------------- --------------
<S> <C> <C>
Investments
-----------
MML EQUITY FUND
Equities ................................................. $ 343,782,419 $ 203,788,888
Short-term investments ................................... 1,396,979,359 1,409,889,561
MML MONEY MARKET FUND
Short-term investments ................................... 384,102,760 383,878,344
MML MANAGED BOND FUND
Bonds and notes .......................................... 15,753,599 24,763,902
U.S. Government investments -- long-term ................. 40,927,884 14,588,656
Short-term investments ................................... 348,381,075 343,796,290
MML BLEND FUND
Equities ................................................. 133,990,229 236,156,551
Bonds and notes .......................................... 57,460,578 29,115,436
U.S. Government investments -- long-term ................. 145,770,578 114,228,472
Short-term investments ................................... 1,351,148,103 1,277,872,433
<CAPTION>
Cost
Forward Commitments of Contracts
------------------- ------------
<S> <C>
MML MANAGED BOND FUND
U.S. Treasury and GNMA Forward Commitment Contracts:
Contracts opened .......................................................... $4,783,171
Contracts closed .......................................................... 0
Outstanding at June 30, 1998 .............................................. 4,783,171
</TABLE>
6. NET INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
For the Six Months Equity Market Bond Blend
Ended June 30, 1998 Fund Fund Fund Fund
------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Shares
Reinvestment of dividends 5,377,046 3,581,539 530,483 8,563,817
Sales of shares ......... 4,793,304 73,221,002 1,354,951 3,539,648
Redemptions of shares ... (1,845,768) (72,612,898) (764,645) (3,020,661)
------------- ------------- ------------- -------------
Net increase ............ 8,324,582 4,189,643 1,120,789 9,082,804
============= ============= ============= =============
Amount
Reinvestment of dividends $ 190,592,681 $ 3,581,539 $ 6,610,512 $ 207,816,927
Sales of shares ......... 182,480,265 73,221,002 17,030,786 89,322,768
Redemptions of shares ... (70,056,366) (72,612,898) (9,588,759) (76,235,890)
------------- ------------- ------------- -------------
Net increase ............ $ 303,016,580 $ 4,189,643 $ 14,052,539 $ 220,903,805
============= ============= ============= =============
<CAPTION>
MML MML
MML Money Managed MML
For the Year Ended Equity Market Bond Blend
December 31, 1997 Fund Fund Fund Fund
----------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Shares
Reinvestment of dividends 2,662,123 7,322,166 1,010,861 5,871,667
Sales of shares ......... 9,271,802 149,151,177 2,489,815 6,389,317
Redemptions of shares ... (2,391,566) (160,539,000) (2,025,214) (4,905,462)
------------- ------------- ------------- -------------
Net increase (decrease) . 9,542,359 (4,065,657) 1,475,462 7,355,522
============= ============= ============= =============
Amount
Reinvestment of dividends $ 79,295,107 $ 7,322,166 $ 12,205,431 $ 134,231,230
Sales of shares ......... 316,494,460 149,151,177 30,449,264 152,709,148
Redemptions of shares ... (82,014,563) (160,539,000) (24,651,298) (118,326,146)
------------- ------------- ------------- -------------
Net increase (decrease) . $ 313,775,004 $ (4,065,657) $ 18,003,397 $ 168,614,232
============= ============= ============= =============
</TABLE>
30
