<PAGE>
Metropolitan
Series Fund, Inc.
ANNUAL
REPORT 1997
for use with
MetLife(R) Universal Life II Policies
<PAGE>
We are pleased to present the Metropolitan Series Fund, Inc. 1997 Annual Report
for MetLife Universal Life II policies. Universal Life II (a variable universal
life insurance policy) provides you with:
. life insurance protection for your beneficiaries and
. the potential for tax-deferred growth of cash value.
UL II may be appropriate for individuals who need permanent life insurance and
who want more control over where their net premiums are invested. You can choose
from the Fixed Account and the eleven investment divisions of the Separate
Account, depending on your investment objective and risk tolerance.
The following chart illustrates the past performance of the UL II policy's
investment divisions at the Separate Account level. The rates include the
charges for mortality and expenses risks (M&E), fund management fees and direct
fund expenses. When reviewing performance, keep in mind that the rates are based
on historical experience and are not intended to suggest what future returns
---
will be.
MetLife Universal Life II
Performance as of December 31, 1997
SEPARATE ACCOUNT AVERAGE ANNUAL RATES OF RETURN
<TABLE>
<CAPTION>
Risk Since
Tolerance Investment Inception Year to One Five Ten Inception
Level Division Date Date** Year Years Years (of Portfolio)
<S> <C> <C> <C> <C> <C> <C> <C>
Conservative State Street Research
Money Market* 6/24/83 4.26% 4.26% 3.57% 4.78% 5.49%
- -----------------------------------------------------------------------------------------------------------------------------------
Conservative State Street Research
to Moderate Income 6/24/83 8.84% 8.84% 6.98% 8.65% 9.64%
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate State Street Research
Diversified 7/25/86 19.50% 19.50% 12.88% 12.30% 11.20%
- -----------------------------------------------------------------------------------------------------------------------------------
Moderate to MetLife
Aggressive Stock Index 5/01/90 30.95% 30.95% 18.65% N/A 16.66%
- -----------------------------------------------------------------------------------------------------------------------------------
Moderately State Street Research
Aggressive Growth 6/24/83 27.21% 27.21% 17.18% 15.83% 13.49%
- -----------------------------------------------------------------------------------------------------------------------------------
Moderately Janus
Aggressive Mid Cap # 3/03/97 27.25% N/A N/A N/A 27.25%**
- -----------------------------------------------------------------------------------------------------------------------------------
Aggressive Loomis Sayles
High Yield Bond # 3/03/97 5.37% N/A N/A N/A 5.37%**
- -----------------------------------------------------------------------------------------------------------------------------------
Aggressive State Street Research
Aggressive Growth # 4/29/88 5.71% 5.71% 11.35% N/A 14.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Aggressive T. Rowe Price
Small Cap Growth # 3/03/97 17.92% N/A N/A N/A 17.92%**
- -----------------------------------------------------------------------------------------------------------------------------------
Aggressive Scudder
Global Equity # 3/03/97 8.80% N/A N/A N/A 8.80%**
- -----------------------------------------------------------------------------------------------------------------------------------
Aggressive State Street Research
International Stock 5/01/91 -3.22% -3.22% 7.49% N/A 3.40%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* An investment in the Money Market Division is neither insured nor
guaranteed by the U.S.government.
** Non-Annualized rates of return.
# Performance results for these portfolios are increased by the voluntary
reduction of fund fees and expenses. Without this subsidization,
performance would have been lower.
THE RATES SHOWN ABOVE DO NOT REFLECT CHARGES AGAINST PREMIUMS, COST OF
------
INSURANCE, AND MONTHLY POLICY FEES. IF THESE CHARGES WERE INCLUDED, THE
PERFORMANCE FIGURES WOULD BE LOWER. Please refer to the hypothetical
illustrations in the current UL II prospectus which show the effect of these
charges on performance. In addition, you may request a personalized illustration
from your Registered Representative that will show the effect of these charges
at an assumed rate of return. Performance above assumes the policy was in
existence for the periods shown. UL II policies were first offered on May 1,
1990.
<PAGE>
METROPOLITAN SERIES FUND, INC.
Letter from the Funds's Chairman and President
- --------------------------------------------------------------------------------
Dear Investor:
We are pleased to present the December 31, 1997 Annual Report of the
Metropolitan Series Fund, Inc. We have prefaced the Report with an overview of
the U.S. and international economies during 1997. Details for each Portfolio,
including a listing of assets, investments, and Portfolio characteristics,
follow:
ECONOMIC REVIEW
The U.S. economy continued to show steady growth with low inflation. Strong
consumer and capital spending were partially offset, however, by lower trade
exports stemming from economic problems in Southeast Asia. Inflation remained
restrained by the productivity improvements flowing from technology, the
strength of the U.S. dollar, and declining prices around the world.
The Federal Reserve seemed unlikely to raise rates in the current environment,
and a cut in rates may be more likely. Also, U.S. fiscal policy contributed to
strong revenues, a shrinking deficit, and declining financing needs.
U.S. STOCK MARKET
The stock market became increasingly volatile in the last months of 1997, as
uncertainties arising out of problems in Southeast Asia weighed more heavily
than the favorable prospect of lower interest rates. Investor interest in the
broader market retracted sharply in the fourth quarter. Defensive stocks, such
as those of food companies and utilities, performed well, while smaller company
and technology stocks performed poorly.
This volatility was expected to continue in 1998. The consensus for operating
earnings improvement of companies in the Standard & Poor's 500 Composite Stock
Price Index was reduced to single digit expectations. This follows an
unprecedented third consecutive year of returns exceeding 20%.
U.S. BOND MARKET
The positive economic outlook finally sparked a bond rally late in 1997. The
Lehman Brothers Aggregate Bond Index, a common benchmark for bond market
performance, outperformed the S&P 500 Index in the fourth quarter.
Global deflationary pressures and Southeast Asian financial concerns resulted in
a flight to U.S. Treasury bonds, which drove bond prices higher. In addition,
long-term fundamentals - sound monetary and benign fiscal policies - remain
positive for bonds.
INTERNATIONAL MARKETS
Driven by a collapse in Asian markets, the major international stock index
returned one of its worst final quarters on record. Japan, Singapore, and
Malaysia declined significantly, and the economic crisis spread to South Korea,
Hong Kong, and other regional markets. The further slowdown in the Japanese
economy highlighted rising inventories and weak domestic demand. A number of
businesses failed as loans were called.
In contrast, European markets were essentially unchanged. Economic activity
continued to pick up despite weakening global demand. The broad-based European
Monetary Union, with 11 founding member countries, seemed certain for 1999.
Germany had high unemployment, and inflation across Europe remained subdued. A
strong U.S. dollar supported European stock markets.
Sincerely,
/s/ David A. Levene /s/ Christopher P. Nicholas
David A. Levene Christopher P. Nicholas
Chairman of the Board and Chief President and Chief Operating Officer
Executive Officer
<PAGE>
METROPOLITAN SERIES FUND, INC.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
MANAGEMENT DISCUSSION AND ANALYSIS
<S> <C>
State Street Research Growth Portfolio........................................................................... MDA-1
State Street Research Income Portfolio........................................................................... MDA-2
State Street Research Money Market Portfolio..................................................................... MDA-3
State Street Research Diversified Portfolio...................................................................... MDA-4
State Street Research Aggressive Growth Portfolio................................................................ MDA-5
MetLife Stock Index Portfolio.................................................................................... MDA-6
State Street Research International Stock Portfolio.............................................................. MDA-7
Loomis Sayles High Yield Bond Portfolio.......................................................................... MDA-8
Janus Mid Cap Portfolio.......................................................................................... MDA-9
T. Rowe Price Small Cap Growth Portfolio......................................................................... MDA-10
Scudder Global Equity Portfolio.................................................................................. MDA-11
ANNUAL REPORT OF THE METROPOLITAN SERIES FUNDS AS OF DECEMBER 31, 1997
Independent Auditors' Report..................................................................................... AUD-1
Schedule of Investments: State Street Research Growth Portfolio.................................................. MSF-1
Schedule of Investments: State Street Research Income Portfolio.................................................. MSF-4
Schedule of Investments: State Street Research Money Market Portfolio............................................ MSF-8
Schedule of Investments: State Street Research Diversified Portfolio............................................. MSF-9
Schedule of Investments: State Street Research Aggressive Growth Portfolio....................................... MSF-15
Schedule of Investments: MetLife Stock Index Portfolio........................................................... MSF-18
Schedule of Investments: State Street Research International Stock Portfolio..................................... MSF-27
Industry Diversification:State Street Research International Stock Portfolio..................................... MSF-31
Schedule of Investments: Loomis Sayles High Yield Bond Portfolio................................................. MSF-32
Schedule of Investments: Janus Mid Cap Portfolio................................................................. MSF-37
Schedule of Investments: T. Rowe Price Small Cap Growth Portfolio................................................ MSF-39
Schedule of Investments: Scudder Global Equity Portfolio......................................................... MSF-46
Industry Diversification: Scudder Global Equity Portfolio........................................................ MSF-49
Statements of Assets and Liabilities............................................................................. MSF-50
Statements of Operations......................................................................................... MSF-52
Statements of Changes in Net Assets.............................................................................. MSF-54
Financial Highlights: State Street Research Growth Portfolio..................................................... MSF-57
Financial Highlights: State Street Research Income Portfolio..................................................... MSF-58
Financial Highlights: State Street Research Money Market Portfolio............................................... MSF-59
Financial Highlights: State Street Research Diversified Portfolio................................................ MSF-60
Financial Highlights: State Street Research Aggressive Growth Portfolio.......................................... MSF-61
Financial Highlights: MetLife Stock Index Portfolio.............................................................. MSF-62
Financial Highlights: State Street Research International Stock Portfolio........................................ MSF-63
Financial Highlights: Loomis Sayles High Yield Bond Portfolio.................................................... MSF-64
Financial Highlights: Janus Mid Cap Portfolio.................................................................... MSF-64
Financial Highlights: T. Rowe Price Small Cap Growth Portfolio................................................... MSF-64
Financial Highlights: Scudder Global Equity Portfolio............................................................ MSF-64
Notes to Financial Statements December 31,1997................................................................... MSF-65
</TABLE>
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH GROWTH PORTFOLIO
The Portfolio delivered good performance relative to its peers over 12 months.
This performance capped a remarkable three-year run for the stock market, driven
by continuing high corporate earnings and falling interest rates. The Portfolio
has benefited from strong technology investments, drug stock performance, and
management focus on large, high-quality, growth and income companies.
During the fourth quarter, market favor rotated to more defensive, value stocks
in industries including telephones and utilities, where the Portfolio held
smaller-than-average positions. Shortfalls in health care company earnings and
selected energy companies also hurt performance. Technology returns were also
weak, although investments had been reduced. Finally, concerns over Asian
economies adversely impacted all holdings.
Management continued to search for high-quality, reliable, conservative
investments with broad investor appeal in a volatile market.
INVESTMENT OBJECTIVE
To achieve long-term growth of capital and income and moderate current income.
UNDERLYING INVESTMENTS
Invests primarily in common stocks that are believed to be of good quality or to
have good growth potential or that are considered to be undervalued based on
historical investment standards.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $2.3 billion
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of Total
Security Net Assets
-------- ----------
<S> <C>
General Electric Co........................................... 3.10
Tyco International Ltd........................................ 2.92
BankAmerica Corp.............................................. 2.27
Rohm & Haas Co. ............................................. 2.23
ACE Ltd....................................................... 2.06
DuPont (E.I.) de Nemours & Co................................. 2.05
Philip Morris Cos., Inc. .................................... 2.01
Ahmanson (H.F.) & Co.......................................... 1.94
Time Warner, Inc.............................................. 1.91
Bristol-Myers Squibb Co. .................................... 1.88
</TABLE>
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the State Street
Research Growth Portfolio and the S&P 500 Index from 12/31/87 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-1
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INCOME PORTFOLIO
The Portfolio performed among the top quartile of its peers for the 12-month
period. This record continued a decade of consistent, positive performance.
The Manager took the positive outlook that interest rates would fall and
therefore kept the Portfolio's interest rate sensitivity longer than the
benchmark. High-yield bonds in the Portfolio were again an important contributor
to performance. The Manager also added mortgage-backed holdings, emphasizing
commercial mortgages and collateralized mortgage obligations, segments of the
market with a history of prepayment stability.
The year was difficult for corporate bonds, and the Portfolio maintained a more
modest exposure. Non-dollar investments were primarily in advanced countries:
the United Kingdom, Australia, New Zealand, and Canada.
INVESTMENT OBJECTIVE
To achieve the highest possible total return, by combining current income with
capital gains, consistent with prudent investment risk and preservation of
capital.
UNDERLYING INVESTMENTS
Invests primarily in fixed-income, high-quality debt securities.
PORTFOLIO COMPOSITION & TOTAL RETURN
AS OF DECEMBER 31, 1997
Net Assets $412.2 million
Average Bond Quality AA+
PERFORMANCE SUMMARY
Comparison of change in value of a
$10,000 investment in the State
Street Research Income Portfolio and
the Lehman Brothers Aggregate Index
from 12/31/87 to 12/31/97.
[GRAPH APPEARS HERE]
The above graph does not include
withdrawal or surrender charges or
Separate Account expenses (general
administrative expenses and mortality
and expense risk charges or cost of
insurance charges). If performance
information included the effect of
these additional charges, performance
would have been lower. Past
performance is no guarantee of future
results. Principal value and
investment return will vary and you
may have a gain or loss when you
withdraw your money.
MDA-2
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH MONEY MARKET PORTFOLIO
The Federal Reserve's target for the Fed Funds rate for the second half of 1997
stayed firmly at 5.50%. Short rates did inch another quarter point higher in
December, which is a typical year-end response. The Portfolio's current maturity
target is in the 45- to 60-day range, awaiting a possible change in the targeted
rate for Fed Funds.
The steadiness of low inflation and the instability in overseas markets-the
factors causing the equity markets to vacillate and the bond market to continue
to rally-suggest the direction of rates going forward. In 1998, short-term rates
may fall in anticipation of a potential easing in Federal Reserve monetary
policy.
INVESTMENT OBJECTIVE
To achieve the highest possible current income consistent with preservation of
capital and maintenance of liquidity.
UNDERLYING INVESTMENTS
Invests primarily in short-term money market instruments. Instruments in this
Portfolio are neither insured nor guaranteed by the United States Government.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $39.5 million
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the State Street
Research Money Market Portfolio and the IBC's Money Fund Averages (TM)/ All
Taxable 30 Day from 12/31/87 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-3
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
The Portfolio delivered solid performance relative to its peers over 12 months.
The stock portion benefited from strong technology investments, drug stock
performance, and management focus on large, high quality, growth and income
companies. The bond portion continued its consistent, positive performance,
keeping interest rate sensitivity higher than the benchmark.
During the fourth quarter, market favor rotated to more defensive, value stocks,
such as telephone and utility sectors, where the Portfolio held smaller-than-
average positions. Shortfalls in health care company earnings and selected
energy companies also hurt performance. Technology returns were also weak,
although investments had been reduced. Finally, concerns over Asian economies
adversely impacted all holdings. High-yield bonds in the Portfolio were again an
important contributor to performance. The Manager also added mortgage-backed
holdings, emphasizing commercial mortgages and collateralized mortgage
obligations, segments of the market with a history of prepayment stability. The
year was difficult for corporate bonds, and the Portfolio maintained a more
modest exposure. Non-dollar investments were primarily in advanced countries:
the United Kingdom, Australia, New Zealand, and Canada.
INVESTMENT OBJECTIVE
To achieve a high total return while attempting to limit investment risk and
preserve capital.
UNDERLYING INVESTMENTS
Invests in equity securities, fixed-income debt securities, or short-term money
market instruments, or any combination thereof.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $2.0 billion
Average Bond Quality AA+
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of Total
Security Net Assets
-------- --------
<S> <C>
General Electric Co........................................... 1.70
Tyco International Ltd........................................ 1.61
BankAmerica Corp.............................................. 1.26
Rohm & Haas Co. ............................................. 1.21
ACE Ltd....................................................... 1.15
Du Pont (E.I.) de Nemours & Co. ............................. 1.13
Philip Morris Cos., Inc. .................................... 1.12
Ahmanson (H.F.) & Co.......................................... 1.07
Time Warner, Inc.............................................. 1.06
Bristol-Myers Squibb Co. .................................... 1.04
</TABLE>
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the State Street
Research Diversified Portfolio, the S&P 500 Index, and the Lehman Brothers
Aggregate Index from 12/31/87 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-4
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH AGGRESSIVE GROWTH PORTFOLIO
Portfolio performance improved in the second half of the year, relative to
competition. Small company growth stocks significantly underperformed as
investors returned to larger blue chip companies and defensive industries such
as retail food and utilities. Investments in consumer discretionary stocks
helped because of their domestic market and earnings growth. Holding fewer
consumer staples which had consistent earnings growth, as well as more producer
durables and aggressive technology companies, hindered performance in this
business cycle. Semiconductor equipment and high-end consumer goods companies
doing business in Southeast Asia were other detractors. Lower interest rates
benefited the Portfolio's financial services stocks.
Starting in September, the Manager began to eliminate smaller speculative
holdings, reduce excessive exposure to technology, and lower portfolio turnover.
This management style has the goal of more consistent, positive returns. In this
economy, the Manager is focusing on consumer discretionary services and retail
stocks, with significant domestic markets and good earnings growth potential,
and on selected technology stocks such as communications equipment and computer
software.
INVESTMENT OBJECTIVE
To achieve maximum capital appreciation.
UNDERLYING INVESTMENTS
Invests primarily in common stocks (and equity and debt securities convertible
into or carrying the right to acquire common stocks) of emerging growth
companies, undervalued securities or special situations.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $1.4 billion
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of Total
Security Net Assets
-------- ----------
<S> <C>
Cendant Corp.................................................. 5.34
Caribiner International, Inc.................................. 2.80
America Online, Inc........................................... 2.51
MCI Communications Corp....................................... 2.00
Travelers Group, Inc.......................................... 1.97
Iomega Corp................................................... 1.93
The Timberland Co. Cl. A...................................... 1.89
Toys `R Us, Inc............................................... 1.86
Warner-Lambert Co............................................. 1.74
Tyco International Ltd........................................ 1.64
</TABLE>
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the State Street
Research Aggressive Growth Portfolio and the S&P 500 Index from 4/29/88 to
12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-5
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
For the fourth quarter of 1997, the return for the Portfolio was 2.3%. For the
full year 1997, the return was 32.2%. These returns reflect gains in the
Standard & Poor's 500 Index, which the Portfolio is designed to track. This
follows strong gains in 1995 and 1996 for the Portfolio and for the S&P 500.
This is the first time the index has had three consecutive years of returns
exceeding 20%. Operating earnings for the companies in the S&P 500 Index rose
about 12% in 1997, reflecting good economic growth in the western hemisphere,
improving labor productivity and rising profit margins. Low inflation and
declining interest rates also helped boost stock prices.
Most of the year's gain in the S&P 500 Index occurred in the first seven months.
Weakness in Asian financial systems and sharp drops in Asian currencies began
during the summer and led to increased volatility in U.S. stocks in the fourth
quarter. This triggered a one day decline of 6.8% in the S&P 500 Index on Oct.
27 most of which was recovered the following day. Investors feared the Asian
problems would adversely affect U.S. company profits, but these problems also
lessened inflation concerns and led to a decline in interest rates. The Asian
financial crisis also appears to have prompted investors to shift funds out of
those markets considered riskier and into U.S. bonds and into large
capitalization U.S. stocks, which are a major component of the S&P 500 Index.
These factors enabled the index to have a modest gain in the final quarter.
During the fourth quarter, the strongest sectors within the S&P 500 Index were
utilities and consumer non-durables, while the weakest areas were technology and
energy. The larger companies tended to perform relatively well.
INVESTMENT OBJECTIVE
To equal the performance of the S&P 500 Index, adjusted to assume reinvestment
of dividends.
UNDERLYING INVESTMENTS
Invests in the common stock of companies which are included in the S&P 500
Index.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $2.0 billion
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of
Total
Net
Security Assets
---------- --------
<S> <C>
General Electric Co........................................... 3.14
Coca-Cola Co.................................................. 2.16
Microsoft Corp................................................ 2.01
Exxon Corp.................................................... 1.95
Merck & Co., Inc.............................................. 1.67
Royal Dutch Petroleum Co...................................... 1.58
Intel Corp.................................................... 1.48
Philip Morris Cos., Inc....................................... 1.41
Procter & Gamble Co........................................... 1.40
International Business Machines Corp.......................... 1.30
</TABLE>
There is no guarantee that the Portfolio currently invests or will continue to
invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the MetLife Stock Index
Portfolio and the S&P 500 Index from 5/1/90 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-6
<PAGE>
- --------------------------------------------------------------------------------
METROPOLITAN SERIES FUND, INC.
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION ANS ANALYSIS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
The Portfolio trailed most of its peer group through the year. The Manager
maintained emphasis on European markets over Asia and Pacific Rim countries and
continued to underweight Japan, pending more supportive government economic
policies.
Continental Europe anticipated the advent of the European Monetary Union.
Domestic demand was expected to become the engine of European growth. At year-
end, Portfolio investments favored Spain for domestic growth, Italy for economic
recovery, and France. Exposure to the UK and Switzerland remained near benchmark
averages. Investment was reduced in cyclical businesses with global markets and
in financial firms involved in Asia.
Among Japanese holdings, the Manager reduced integrated industrials that were
vulnerable to slowdown, but kept positions in top banks that could benefit amid
competition. Investment throughout Asia was confined to selected, large, well-
managed companies with strong balance sheets.
INVESTMENT OBJECTIVE
To achieve long-term growth of capital.
UNDERLYING INVESTMENTS
Invests primarily in common stock and equity-related securities of non-United
States companies.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $267.1 million
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of
Total
Net
Security Assets
-------- --------
<S> <C>
Roche Holdings AG (Switzerland)............................... 1.86
Novartis AG (Switzerland)..................................... 1.65
Allianz AG (Germany).......................................... 1.46
Nestle SA (Switzerland) ..................................... 1.35
Royal Dutch Petroleum Co. (Netherlands)....................... 1.32
Glaxo Wellcome PLC (United Kingdom)........................... 1.31
Nintendo Co. Ltd. (Japan)..................................... 1.16
Lloyds TSB Group PLC (United Kingdom)......................... 1.10
Nippon Telephone & Telegraph (Japan) ......................... 1.02
HSBC Holdings PLC (United Kingdom) .......................... 0.99
</TABLE>
DIVERSIFICATION BY COUNTRY AND REGION FOR THE STATE STREET RESEARCH
INTERNATIONAL STOCK PORTFOLIO AS OF 12/31/97
[GRAPH APPEARS HERE]
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in these countries, securities, or
industries.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the State Street
Research International Stock Portfolio and the MSCI EAFE Index from 5/1/91 to
12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-7
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
The Portfolio lagged the benchmark Merrill Lynch High Yield Index for the fourth
quarter, returning -5.4%. Since its inception in March of 1997, it has returned
6.2%. The Portfolio's exposure to Yankees relative to the benchmark, coupled
with the underperformance of convertibles which resulted from the continued
volatility in equity markets, curtailed performance in the fourth quarter. Being
longer than the market, the Portfolio is well positioned to participate in gains
resulting from the current falling interest rate environment. At the same time,
by holding mostly non-callable or deep-discounted bonds, the Portfolio offers
protection from reinvestment risk. Since tight corporate spreads have made it
increasingly difficult to find attractive issues, the Manager must focus now
more than ever on uncovering undervalued credits with strong underlying
fundamentals. The Loomis Sayles High Yield Bond Portfolio remains well
structured for the current environment, offering good yield advantage, call
protection, and diversification.
INVESTMENT OBJECTIVE
To achieve high total investment return through a combination of current income
and capital appreciation.
UNDERLYING INVESTMENTS
Normally invests at least 65% of its assets in fixed-income securities of
below-investment-grade quality.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $27.8 million
Average Bond Quality BB
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the Loomis Sayles High
Yield Bond Portfolio and the Merrill Lynch High Yield Index from 3/3/97 to
12/31/97.
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-8
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
JANUS MID CAP PORTFOLIO
Although the Southeast Asian crisis injected new volatility into global markets,
domestic equities managed to post modest gains during the fourth quarter. The
Portfolio did well during this period, and closed out the year on a strong note.
Overall, the Portfolio continues to hold an assortment of companies with strong
earnings prospects, and a number of its top positions announced very strong
earnings gains during the quarter. The Portfolio's top 20 positions reported an
average earnings increase of over 35% during the fourth quarter 1997, which is
well in excess of the average earnings of the companies in the benchmark, the
S&P 400 MidCap Index. Meanwhile, the Portfolio also had a number of standouts
whose price appreciated over 40% during the same period, including Farmer Mac,
Outdoor Systems, Paychex, and Chancellor Media. What's interesting is that for
all four of these companies, the fundamentals remain unchanged.
For most of the year, many of the stocks' prices did not reflect their
underlying strength, but during the fourth quarter, investors began to take
notice of several of the stocks in our Portfolio. Looking ahead, Southeast
Asia's downturn will almost certainly result in slower growth, both here and
abroad. In this environment, owning companies that can consistently meet or
exceed earnings expectations should be rewarded, while those that disappoint
will be punished. Going forward, the Manager expects many of the Portfolio's
longtime holdings to deliver solid results. These include numerous domestic
consumer discretionary stocks, some U.K.-based restaurant and pub companies, and
a number of media and entertainment positions. Similarly, recent additions in
the technology sector, although small as a percentage of the Portfolio, have
tremendous potential. As a result, the Manager maintains a positive outlook for
1998.
INVESTMENT OBJECTIVE
To provide long-term growth of capital.
UNDERLYING INVESTMENTS
Invests primarily in securities issued by medium-sized companies.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $103.9 million
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of
Total
Net
Security Assets
---------- ---------
<S> <C>
Omnicare, Inc................................................. 5.93
Paychex, Inc.................................................. 5.42
Apollo Group, Inc. Cl. A...................................... 3.77
Clear Channel Communications, Inc............................. 3.75
Wetherspoon (J.D.) PLC........................................ 3.73
Fastenal Co................................................... 3.58
Pizza Express PLC............................................. 3.20
Cadence Design Systems, Inc................................... 2.91
AES Corp...................................................... 2.63
Charles Schwab Corp........................................... 2.48
</TABLE>
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the Janus Mid Cap
Portfolio and the S&P 400 MidCap Index from 3/3/97 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-9
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSIONS AND ANALYSIS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
Continuing strong asset growth pushed the Portfolio past $90 million in assets.
The Portfolio's median market capitalization fell slightly to $870 million,
largely as a result of market movements. The P/E ratio of the Portfolio is now
less than 1.1 times the P/E ratio of the S&P 500, which is noteworthy for a
portfolio of companies growing considerably faster than the S&P 500.
Historically, valuations around this level have signaled attractive
opportunities for investment in small cap growth companies. The Portfolio's
largest sector exposures are in technology, services, and health care.
In the fourth quarter, most sectors in the Portfolio declined. The worst area
was technology, most notably PC related manufacturers and related equipment
companies. Natural resource stocks also fell as the price of oil declined. The
best performing sectors were finance (helped by lower interest rates) and media.
While hospital management companies were weak, other health care related
companies performed well. The Portfolio remains fully invested; at quarter end
it held 3.8% cash reserves. Fundamental performance of the Portfolio's companies
is excellent. During the fourth quarter, over 62% of the earnings estimate
changes for Portfolio companies resulted in upward revisions.
INVESTMENT OBJECTIVE
To achieve long-term capital growth.
UNDERLYING INVESTMENTS
Invests in small capitalization companies.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $94.0 million
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of Total
Security Net Assets
-------- ----------
<S> <C>
CIBER, Inc. ................................................. 0.56
Outdoor Systems, Inc.......................................... 0.54
Central Parking Corp.......................................... 0.53
Coast Savings Financial, Inc. ............................... 0.53
UICI.......................................................... 0.52
North Fork Bancorp, Inc....................................... 0.52
Sybron International Corp..................................... 0.52
Legg Mason, Inc............................................... 0.51
Orbital Sciences Corp......................................... 0.49
Wolverine World Wide, Inc..................................... 0.49
</TABLE>
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in the securities or industries listed.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the T. Rowe Price Small
Cap Growth Portfolio and the Russell 2000 Growth Index from 3/3/97 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-10
<PAGE>
METROPOLITAN SERIES FUND, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
SCUDDER GLOBAL EQUITY PORTFOLIO
The fourth quarter saw the introduction of new thematic ideas as well as a minor
re-allocation between existing themes. One new theme, entitled "Secure Streams
of Income," is based on the idea that demographic change will increase the
world's demand for income-producing securities-primarily bonds and utility
stocks-at precisely the same time that fiscal austerity and deregulation will be
shrinking their supply. Therefore, the Managers have been buying those utilities
best positioned to prosper in a deregulated environment. In addition, bonds now
comprise roughly 16% of the Portfolio.
Given recent events in Asia, the Managers have reduced the capital goods
exposure in several themes as they looked to avoid the negative effects that the
crises may have on this sector. The Managers have also taken advantage of the
regional crises by adding several attractively-valued Hong Kong stocks to the
"Emerging Markets" theme.
INVESTMENT OBJECTIVE
To achieve long-term growth of capital through a diversified portfolio of
marketable securities, primarily equity securities, including common stocks,
preferred stocks, and debt securities convertible into common stocks.
UNDERLYING INVESTMENTS
Invests on a worldwide basis in equity securities of companies which are
incorporated in the U.S. or in foreign countries. The Portfolio may also invest
in the debt securities of U.S. and foreign issuers. Income is an incidental
consideration.
PORTFOLIO COMPOSITION & TOTAL RETURN AS OF DECEMBER 31, 1997
Net Assets $60.7 million
COMPOSITION
Top Ten Equity Holdings
<TABLE>
<CAPTION>
% of Total
Security Net Assets
-------- ----------
<S> <C>
International Business Machines Corp. (United States)......... 1.98
CINergy Corp. (United States)................................. 1.84
VEBA AG (Germany)............................................. 1.72
Unilever PLC (United Kingdom)................................. 1.71
Assurance Generale de France (France)......................... 1.57
RWE AG (Germany).............................................. 1.57
BASF AG (Germany)............................................. 1.53
Credit Suisse Group (Switzerland)............................. 1.52
Novartis AG (Switzerland)..................................... 1.50
Muenchener Rueckversicherungs AG (Germany).................... 1.49
</TABLE>
DIVERSIFICATION BY COUNTRY AND REGION FOR THE SCUDDER GLOBAL EQUITY PORTFOLIO
AS OF 12/31/97 BASED ON MARKET VALUE OF INVESTMENT
[GRAPH APPEARS HERE]
Due to active management, there is no guarantee that the Portfolio currently
invests or will continue to invest in these countries, securities, or
industries.
PERFORMANCE SUMMARY
Comparison of change in value of a $10,000 investment in the Scudder Global
Equity Portfolio and the MSCI World Index from 3/3/97 to 12/31/97.
AVERAGE ANNUAL TOTAL RETURNS
[GRAPH APPEARS HERE]
The above graph does not include withdrawal or surrender charges or Separate
Account expenses (general administrative expenses and mortality and expense risk
charges or cost of insurance charges). If performance information included the
effect of these additional charges, performance would have been lower. Past
performance is no guarantee of future results. Principal value and investment
return will vary and you may have a gain or loss when you withdraw your money.
MDA-11
<PAGE>
- --------------------------------------------------------------------------------
ANNUAL REPORT
of
METROPOLITAN
SERIES FUND, INC.
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
METROPOLITAN SERIES FUNDS, INC.
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Metropolitan Series Fund, Inc.
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the State Street Research Growth,
State Street Research Income, State Street Research Money Market, State Street
Research Diversified, State Street Research Aggressive Growth, MetLife Stock
Index, State Street Research International Stock, Loomis Sayles High Yield Bond,
Janus Mid Cap, T. Rowe Price Small Cap, and Scudder Global Equity Portfolios of
the Metropolitan Series Fund, Inc. (The "Fund") as of December 31, 1997, the
related statements of operations for the year then ended, the statements of
changes in net assets for the years ended December 31, 1997 and 1996, and the
financial highlights for the applicable periods ended December 31, 1997, 1996,
1995, 1994, and 1993. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1997 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the State Street
Research Growth, State Street Research Income, State Street Research Money
Market, State Street Research Diversified, State Street Research Aggressive
Growth, MetLife Stock Index, State Street Research International Stock, Loomis
Sayles High Yield Bond, Janus Mid Cap, T. Rowe Price Small Cap, and Scudder
Global Equity Portfolios of the Metropolitan Series Fund, Inc. at December 31,
1997 and the results of their operations, the changes in their net assets, and
the financial highlights for the respective stated periods, in conformity with
generally accepted accounting principles.
/s/ Deloitte & Auditor LLP
Denver, Colorado
February 17, 1998
AUD-1
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH GROWTH PORTFOLIO
DECEMBER 31,1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: 89.9%
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE: 2.4%
661,200 Boeing Co. $ 32,357,475
22,970 + * Raytheon Co. Cl. A 1,132,706
435,400 + Raytheon Co. Cl. B 21,987,700
------------
55,477,881
- --------------------------------------------------------------------------------
AUTOMOTIVE: 1.8%
360,200 General Motors Corp. 21,837,125
765,800 * Renault SA 21,541,902
------------
43,379,027
- --------------------------------------------------------------------------------
BANKING: 8.7%
682,500 + Ahmanson (H.F.) & Co. 45,684,844
806,100 + Banc One Corp. 43,781,306
730,700 BankAmerica Corp. 53,341,100
601,400 + NationsBank Corp. 36,572,637
409,200 * Washington Mutual, Inc. 26,099,288
------------
205,479,175
- --------------------------------------------------------------------------------
BROADCASTING: 5.3%
818,000 CBS Corp. 24,079,875
723,700 + Time Warner, Inc. 44,869,400
1,273,400 * U.S. West, Inc.-Media Group 36,769,425
444,400 + * Viacom, Inc. Cl. B 18,414,825
------------
124,133,525
- --------------------------------------------------------------------------------
BUSINESS SERVICES: 1.1%
396,271 * Cendant Corp. 13,621,822
248,600 HBO & Co. 11,925,031
------------
25,546,853
- --------------------------------------------------------------------------------
CHEMICALS: 4.5%
800,200 + Du Pont (E.I.) de Nemours & Co. 48,062,012
116,800 Monsanto Co. 4,905,600
547,700 Rohm & Haas Co. 52,442,275
------------
105,409,887
- --------------------------------------------------------------------------------
DRUGS & HEALTH CARE: 6.4%
466,700 + Bristol-Myers Squibb Co. 44,161,487
309,544 * Novartis AG ADR 25,148,902
355,200 Pfizer, Inc. 26,484,600
349,700 Schering-Plough Corp. 21,725,113
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
DRUGS & HEALTH CARE: (CONTINUED)
266,000 Warner-Lambert Co. $ 32,984,000
------------
150,504,102
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT: 4.0%
524,300 AMP, Inc. 22,020,600
992,100 General Electric Co. 72,795,337
------------
94,815,937
- --------------------------------------------------------------------------------
ELECTRONICS: 3.3%
243,400 * Analog Devices, Inc. 6,739,138
343,570 * Ericsson (L. M.) Telephone Co. Cl. B ADR 12,830,192
212,000 * Intel Corp. 14,886,375
285,600 * Lucent Technologies, Inc. 22,812,300
352,800 * Teradyne, Inc. 11,289,600
209,000 + Texas Instruments, Inc. 9,405,000
------------
77,962,605
- --------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE: 1.0%
226,441 + Disney (Walt) Co. 22,431,812
- --------------------------------------------------------------------------------
FINANCIAL SERVICES: 1.5%
663,849 Travelers Group, Inc. 35,764,865
- --------------------------------------------------------------------------------
FOOD & BEVERAGES: 3.2%
231,300 Coca-Cola Co. 15,410,362
343,300 General Mills, Inc. 24,588,862
679,700 Heinz (H.J.) Co. 34,537,256
------------
74,536,480
- --------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 2.0%
591,700 + Fort James Corp. 22,632,525
474,200 Weyerhaeuser Co. 23,265,438
------------
45,897,963
- --------------------------------------------------------------------------------
HOSPITAL MANAGEMENT: 0.7%
494,600 Tenet Healthcare Corp. 16,383,625
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS: 1.6%
129,300 Gillette Co. 12,986,569
296,200 Procter & Gamble Co. 23,640,463
36,627,032
- --------------------------------------------------------------------------------
INSURANCE: 4.3%
502,500 ACE Ltd. 48,491,250
157,200 General Re Corp. 33,326,400
</TABLE>
MSF-1
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH GROWTH PORTFOLIO
DECEMBER 31,1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE: (CONTINUED)
237,800 St. Paul Cos., Inc. $ 19,514,463
101,332,113
- --------------------------------------------------------------------------------
MACHINERY: 0.7%
442,200 Browning-Ferris Industries, Inc. 16,361,400
- --------------------------------------------------------------------------------
MEDICAL SUPPLY: 1.9%
208,100 + * Boston Scientific Corp. 9,546,587
153,300 Guidant Corp. 9,542,925
399,600 + Johnson & Johnson 26,323,650
------------
45,413,162
- --------------------------------------------------------------------------------
METALS-STEEL & IRON: 1.0%
968,400 + British Steel Corp. PLC ADR 20,760,075
120,200 * Ispat International Cl. A NV 2,599,325
------------
23,359,400
- --------------------------------------------------------------------------------
MISCELLANEOUS: 2.9%
1,520,400 Tyco International Ltd. 68,513,025
- --------------------------------------------------------------------------------
OFFICE & BUSINESS EQUIPMENT: 4.7%
433,350 * Cisco Systems, Inc. 24,186,347
404,850 Compaq Computer Corp. 22,848,722
380,300 IKON Office Solutions, Inc. 10,695,937
269,400 + International Business Machines Corp. 28,169,137
340,300 Xerox Corp. 25,118,394
------------
111,018,537
- --------------------------------------------------------------------------------
OIL: 1.7%
733,940 TOTAL ADR 40,733,670
- --------------------------------------------------------------------------------
OIL & GAS EXPLORATION: 2.3%
320,100 + Anadarko Petroleum Corp. 19,426,069
208,300 ENI SPA ADS 11,886,119
1,111,700 * Seagull Energy Corp. 22,928,813
------------
54,241,001
- --------------------------------------------------------------------------------
OIL-DOMESTIC: 2.0%
739,200 Oryx Energy Co. 18,849,600
729,200 + Unocal Corp. 28,302,075
------------
47,151,675
- --------------------------------------------------------------------------------
OIL-INTERNATIONAL: 1.0%
435,800 + Royal Dutch Petroleum Co. 23,614,913
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL GROCERY: 3.2%
1,054,400 + * Kroger Co. $38,946,900
560,800 + * Safeway, Inc. 35,470,600
-----------
74,417,500
- --------------------------------------------------------------------------------
RETAIL TRADE: 7.8%
522,300 CVS Corp. 33,459,844
487,900 Dayton-Hudson Corp. 32,933,250
512,700 Home Depot, Inc. 30,185,212
607,300 Rite Aid Corp. 35,640,919
763,100 + * Staples, Inc. 21,223,719
952,400 * Toys 'R Us, Inc. 29,941,075
-----------
183,384,019
- --------------------------------------------------------------------------------
SOFTWARE: 1.1%
199,200 * Microsoft Corp. 25,740,375
- --------------------------------------------------------------------------------
TOBACCO: 2.0%
1,044,500 Philip Morris Cos., Inc. 47,328,906
- --------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 3.9%
388,100 FPL Group, Inc. 22,970,669
786,100 Texas Utilities Co. 32,672,281
1,174,300 + * WorldCom, Inc. 35,559,272
-----------
91,202,222
- --------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 1.9%
479,700 + Bell Atlantic Corp. 43,652,700
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $1,755,942,766).................. 2,111,815,387
-------------
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 11.1%
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$2,443,000 American Express
Credit Corp. 5.830% 1/13/98 $ 2,443,000
20,833,000 American Express
Credit Corp. 5.750% 1/14/98 20,833,000
5,029,000 Anheuser-Busch Co.,
Inc. 6.650% 1/02/98 5,028,071
19,081,000 Beneficial Corp. 5.870% 1/13/98 19,081,000
30,433,000 Beneficial Corp. 5.830% 1/08/98 30,433,000
49,681,000 CIT Group Holdings,
Inc. 6.050% 1/12/98 49,681,000
</TABLE>
MSF-2
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH GROWTH PORTFOLIO
DECEMBER 31,1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: (CONTINUED)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 7,678,000 Ford Motor Credit Co. 5.950% 1/08/98 $ 7,678,000
11,077,000 Ford Motor Credit Co. 5.880% 1/13/98 11,077,000
17,998,000 Ford Motor Credit Co. 6.100% 1/08/98 17,998,000
11,386,000 General Electric
Capital Corp. 5.900% 1/13/98 11,386,000
25,000,000 General Electric
Capital Corp. 6.080% 1/05/98 25,000,000
20,000,000 Goldman Sachs Group LP 5.750% 1/12/98 19,964,861
40,000,000 Goldman Sachs Group LP 5.870% 1/05/98 39,973,911
--------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $260,576,842).......................................... 260,576,843
--------------
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 101.0%
(Cost: $2,016,519,608)........................................ 2,372,392,230
OTHER ASSETS LESS LIABILITIES: (1.0)%......................... (23,330,647)
--------------
NET ASSETS: 100.0%............................................ $2,349,061,583
==============
- -------------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- -------
* Non-income producing security.
+ Securities on loan.
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $141,906,486
with collateral backing valued at $145,698,568.
See Notes to Financial Statements.
MSF-3
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INCOME PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS: 46.3%
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET BACKED: 2.9%
$ 4,100,000 AT&T Universal Card
Master Tr. Ser. 1995-2 A 5.950% 10/17/00 $ 4,093,563
3,950,000 Ford Credit Auto Owner
Tr.Ser. 1997-B A3 SEQ 6.050% 4/15/99-01 3,972,219
4,000,000 World Omni Automobile
Lease Tr. Ser. 1997-B A3
SEQ 6.180% 11/25/00-03 4,001,400
-------------
12,067,182
- -----------------------------------------------------------------------------------------------------------------------------------
BANKING: 5.6%
1,900,000 Advanta Master Trust II
Ser. 1995-F A1 6.050% 8/01/00-03 1,896,428
2,775,000 American Express Master
Trust Ser. 1996-1 A 6.800% 5/15/01 2,840,018
3,950,000 . Bank of New York 144A 7.780% 12/01/06-26 4,105,274
2,500,000 . BankAmerica
Institutional Capital
144A 7.700% 12/31/06-26 2,573,475
1,925,000 Capital One Bank Sr. 7.080% 10/30/01 1,969,698
1,400,000 NB Capital Tr. Ser. 8.250% 4/15/07-27 1,527,764
1995-1 A
1,000,000 NationsBank Master Tr.
Ser. 1995-1 A 6.450% 8/15/00 1,009,680
1,900,000 Prime Credit Card
Master Tr. Ser. 1995-1 A 6.750% 8/15/02 1,938,000
3,200,000 Standard Credit Card
Master Tr. Ser. 1991-3 A 8.875% 7/07/98 3,244,992
1,950,000 . Wells Fargo Capital
Securities 144A 7.730% 12/01/06-26 2,023,496
-------------
23,128,825
- -----------------------------------------------------------------------------------------------------------------------------------
BROADCASTING: 1.0%
3,900,000 TCI
Communications, Inc. Sr. 7.250% 6/15/99 3,944,733
- -----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS: 6.0%
1,981,136 Amresco Commercial
Mortgage Sec. Ser. 1997-
C1 A1 SEQ 6.730% 6/17/02-04 2,014,320
2,713,732 Chase Commercial Mtg.
Sec. Ser. 1997-1 A1 7.270% 7/19/02-04 2,802,565
990,227 Countrywide Ser. 1993-E
A1 PAC 6.500% 1/25/97-24 989,608
2,025,000 Credit Suisse First
Boston Ser. 1997-C2 A2
SEQ 6.520% 7/17/05-07 2,028,797
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS: (CONTINUED)
$ 1,932,102 . Donaldson, Lufkin &
Jenret, Inc. 144A 6.550% 11/15/03-06 $ 1,948,706
1,950,000 First Union Lehman
Bros. Ser. 1997-C2. A2
SEQ 6.600% 05/18/05-07 1,950,609
3,850,000 First USA Credit Card
Master Tr. Ser. 1997-6 A 6.420% 7/17/02 3,887,297
3,910,825 Lehman Commercial
Mtg.Ser. 97-LL1 A1 SEQ 6.790% 6/12/02-04 3,992,708
1,420,132 Prudential Home Loan
Mortgage Ser. 93-29 A-6
PAC 6.750% 8/25/98-08 1,422,347
2,750,000 Residential Fund Corp.
Ser. 93-S37 A3 SEQ 6.400% 10/25/01-23 2,737,955
1,046,371 Residential Funding
Corp. Ser.93-S25 A1 PAC 6.500% 7/25/98-08 1,044,404
-------------
24,819,316
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: 14.8%
2,575,000 Allmerica Financial
Corp. Sr. 7.625% 10/15/25 2,729,088
1,975,000 American Express Credit
Acct. Master Tr. Ser.
1997-1 A 6.400% 9/15/00 2,001,524
1,900,000 Arcadia Auto Trust Ser.
1997-B A5 SEQ 6.700% 2/15/01-05 1,925,531
1,800,000 Associates Corp. of North
America 6.750% 7/15/01 1,830,240
2,800,000 Associates Corp. of North
America 6.375% 10/15/02 2,812,516
3,775,000 Associates Corp. of North
America Sr. 6.700% 5/29/01 3,830,455
3,229,706 Banc One Auto
Receivable Grant Trust
97-A A 6.270% 11/20/99-03 3,235,762
1,200,000 Beneficial Corp. 9.125% 2/15/98 1,203,720
1,875,000 Cigna Corp. Deb. 7.875% 5/15/27 2,010,131
1,800,000 CIT Group Hldgs., Inc. Sr. 6.700% 5/28/01 1,829,916
1,225,000 Commercial Credit
Group, Inc. 6.750% 5/15/00 1,239,320
3,075,000 Countrywide Funding
Corp. 6.580% 9/21/01 3,111,100
3,800,000 Fleet Mortgage Group,
Inc. 7.060% 7/26/02 3,888,692
</TABLE>
MSF-4
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INCOME PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE$
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL SERVICES: (CONTINUED)
$ 3,800,000 Ford Credit Auto Loan
Master Trust Ser. 95-1 6.500% 8/15/00 $ 3,830,856
1,025,000 GE Global Insurance
Holding Corp. 7.000% 2/15/26 1,064,114
1,800,000 General Motors
Acceptance Corp. 7.050% 2/02/98 1,801,242
2,050,000 GMAC Commercial
Mortgage Security, Inc. 6.550% 4/15/06-07 2,065,293
1,700,000 Household Fin. Co. Sr. 6.750% 6/01/00 1,719,142
3,750,000 Household Fin. Co. Sr. 7.125% 5/30/02 3,881,363
1,925,000 MBNA Corp. Sr. 6.875% 11/15/02 1,940,573
1,500,000 PennCorp Financial
Group Sr. 9.250% 12/15/98-03 1,571,250
3,220,755 . Railcar Leasing Ser.
1997-1 A1 SEQ 144A 6.750% 7/15/02-06 3,285,170
1,925,000 Sears Credit Account
Master Tr.II Ser. 1997-1 A 6.200% 7/15/02-07 1,926,353
2,000,000 Sears Credit Account
Master Tr.II Ser. 1995-2 A 8.100% 6/15/00-04 2,065,000
3,650,000 . Zurich Capital Trust
144A 8.376% 6/01/07-37 3,977,478
-------------
60,775,829
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED: FEDERALLY CHARTERED: 1.3%
1,500,000 Big Rivers Electric
Cooperative Trust 10.700% 9/15/98-17 1,583,640
825,000 Cajun Electric Power
Cooperative Trust 9.520% 3/15/98-19 870,070
2,900,000 Deseret Generation
Cooperative Trust 10.110% 12/15/97-17 3,052,946
-------------
5,506,656
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED: STATE CHARTERED: 0.5%
1,850,000 New Jersey Economic
Development Authority
State Pension Funding
Ser. A 7.425% 2/15/29 2,042,474
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE SERVICES: 2.4%
2,600,000 Columbia/HCA
Healthcare Corp. 6.870% 9/15/03 2,549,274
3,800,000 Columbia/HCA
Healthcare Corp. 7.690% 6/15/25 3,658,944
3,850,000 Columbia/HCA
Healthcare Corp. 6.500% 3/15/99 3,828,247
------------
10,036,465
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FACE INTEREST MATURITY VALUE$
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS: 1.0%
$ 3,950,000 Fort James Corp. Sr. 6.625% 9/15/04 $ 3,962,600
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS: 5.9%
2,050,000 Chesapeake Energy Corp.
Sr. 7.875% 3/15/04 2,014,125
1,000,000 Chevron Corp. Profit
Sharing Amort. Note 8.110% 12/01/01-04 1,067,170
2,300,000 . Electronic Data Systems
Corp. 144A 6.850% 5/15/00 2,341,423
1,900,000 HealthSouth Corp. Sr. 9.500% 4/01/98-01 2,001,175
1,500,000 . K-III Communications
Corp. 144A Sr. 8.500% 2/01/01-06 1,526,250
1,500,000 Lear Seating Corp. Sub. 8.250% 2/01/98-02 1,518,750
1,925,000 Loews Corp. Sr. 6.750% 12/15/06 1,938,533
1,950,000 Oracle Corp. Sr. 6.910% 2/15/07 1,951,950
1,400,000 Oryx Energy Co. Deb. 8.125% 10/15/05 1,493,534
1,000,000 Paging Network, Inc. Sr. 8.875% 2/01/99-06 980,000
1,000,000 Paging Network, Inc. Sr. 10.000% 10/15/01-08 1,040,000
2,300,000 Tenet Healthcare Corp.
Sr. 8.000% 1/15/05 2,340,250
3,800,000 Viacom, Inc. Sr. 7.750% 6/01/05 3,864,942
------------
24,078,102
- ----------------------------------------------------------------------------------------------------------------------------------
NEWSPAPERS: 1.1%
1,975,000 News America Holdings,
Inc. Sr. 7.750% 1/20/24 2,055,146
2,550,000 News America Holdings,
Inc. Deb. 7.375% 10/17/08 2,622,395
------------
4,677,541
- ----------------------------------------------------------------------------------------------------------------------------------
RESTAURANT: 0.8%
3,500,000 Darden Restaurants, Inc. 7.125% 2/01/16 3,362,275
Deb.
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 3.0%
3,500,000 Arizona Public Service
Sr. 6.750% 11/15/06 3,559,360
2,000,000 CMS Energy Corp. Sub. 7.625% 11/15/04 1,990,460
2,850,000 . Edison Mission Energy
Funding Note 144A 7.330% 9/15/05-08 2,976,483
3,900,000 Southern California
Edison Co. 6.500% 6/01/01 3,933,579
------------
12,459,882
------------
TOTAL CORPORATE
(Cost: $188,114,732) 190,861,880
------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
MSF-5
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INCOME PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE A)
- --------------------------------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS: 5.2%
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,034,252 Federal Home Loan
Mortgage Corp. 7.500% 8/01/11 $ 4,144,548
640,453 Federal Home Loan
Mortgage Corp. 9.000% 12/01/09 681,442
2,600,000 Federal Home Loan
Mortgage Corp. Deb. 7.240% 5/15/98-02 2,608,944
3,900,000 Federal Home Loan
Mortgage Corp. 6.350% 5/17/01-18 3,920,709
54,351 Federal National
Mortgage Assoc. 7.750% 4/01/08 56,731
113,173 Federal National
Mortgage Assoc. 8.000% 6/01/08 118,266
131,495 Federal National
Mortgage Assoc. 9.000% 4/01/16 139,713
308,846 Federal National
Mortgage Assoc. 8.500% 9/01/09 322,812
409,502 Federal National
Mortgage Assoc. 7.750% 9/01/06 421,832
587,605 Federal National
Mortgage Assoc. 7.750% 3/01/08 609,453
848,844 Federal National
Mortgage Assoc. 8.500% 2/01/09 890,488
979,891 Federal National
Mortgage Assoc. 8.250% 7/01/08 1,020,350
2,925,000 Federal National
Mortgage Assoc. 6.800% 9/25/04-22 2,973,438
3,272,303 Government National
Mortgage Assoc. 8.000% 11/15/17 3,443,052
248,766 Government National
Mortgage Assoc. 7.500% 5/15/07 257,316
------------
TOTAL FEDERAL AGENCY OBLIGATIONS
(Cost: $21,478,189)............................................... 21,608,734
------------
- --------------------------------------------------------------------------------------------------------------------
FEDERAL TREASURY OBLIGATIONS: 29.6%
- --------------------------------------------------------------------------------------------------------------------
3,350,000 +U.S. Treasury Bond 12.000% 8/15/08-13 4,936,024
5,275,000 U.S. Treasury Bond 6.250% 8/15/23 5,433,250
15,975,000 U.S. Treasury Bond 8.750% 5/15/17 20,944,663
18,050,000 +U.S. Treasury Bond 8.125% 8/15/21 22,768,451
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- --------------------------------------------------------------------------------------------------------------------
FEDERAL TREASURY OBLIGATIONS: (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------
$ 1,963,288 +U.S. Treasury Inflation
Indexed Note 3.375% 1/15/07 $ 1,911,752
3,125,000 +U.S. Treasury Note 7.125% 9/30/99 3,199,219
1,500,000 +U.S. Treasury Note 6.625% 7/31/01 1,542,180
5,225,000 +U.S. Treasury Note 6.250% 8/31/00 5,295,224
10,350,000 +U.S. Treasury Note 6.875% 8/31/99 10,544,063
12,025,000 U.S. Treasury Note 7.875% 11/15/04 13,443,589
13,425,000 +U.S. Treasury Note 6.500% 8/15/05 14,008,182
30,975,000 U.S. Treasury Strip 0.000% 5/15/07 17,966,429
-------------
TOTAL FEDERAL TREASURY OBLIGATIONS
(Cost: $117,073,813)............................................. 121,993,026
-------------
- -----------------------------------------------------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: 7.3%
- -----------------------------------------------------------------------------------------------------------------------------------
11,775,000 Australian Government 9.000% 9/15/04 8,984,213
5,000,000 New Zealand 8.000% 11/15/06 3,082,438
7,675,000 New Zealand 10.000% 3/15/02 4,879,008
7,000,000 UK Treasury 8.500% 12/07/05 12,974,205
TOTAL FOREIGN OBLIGATIONS
(Cost: $31,736,560).............................................. 29,919,864
- --------------------------------------------------------------------------------------------------------------------
YANKEE BONDS: 5.6%
- --------------------------------------------------------------------------------------------------------------------
1,900,000 .British Aerospace
Finance, Inc. 144A 7.500% 7/01/27 2,031,252
1,800,000 City of Naples Note 7.520% 7/15/01-06 1,883,916
3,800,000 .DR Investments 144A Sr. 7.100% 5/15/02 3,894,354
3,100,000 Hydro Quebec Deb. Ser.
HS 9.400% 2/01/21 4,002,720
2,000,000 .Petroliam Nasional
Berhad 144A 7.125% 8/15/05 1,907,600
2,600,000 .Petroliam Nasional
Berhad 144A 6.875% 7/01/03 2,545,946
2,025,000 Province Of Quebec Deb. 7.125% 2/09/24 2,085,568
1,925,000 Southern Investments UK
Sr. 6.375% 11/15/01 1,922,036
2,550,000 Talisman Energy Deb. 7.125% 6/01/07 2,638,205
-------------
TOTAL YANKEE BONDS
(Cost: $22,222,572).............................................. 22,911,597
-------------
</TABLE>
MSF-6
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INCOME PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 4.6%
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 851,000 American Express Credit
Corp. 5.550% 1/02/98 $ 851,000
9,291,000 American Express Credit
Corp. 6.000% 1/07/98 9,291,000
8,784,000 General Electric
Capital Corp. 6.020% 1/05/98 8,784,000
-------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $18,926,000).............................................. 18,926,000
-------------
- -------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 98.6%
(Cost: $399,551,866)............................................. 406,221,101
OTHER ASSETS LESS LIABILITIES: 1.4% 5,969,530
-------------
NET ASSETS: 100.0%............................................... $ 412,190,631
=============
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- -------
* Non-income producing security.
+ Securities on loan.
. Restricted security.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $31,147,268
with collateral backing valued at $31,731,201.
RESTRICTED SECURITIES: (Note 2)
- -------------------------------
<TABLE>
<CAPTION>
Valuation
ACQUISITION ACQUISITION AS OF
ISSUE DATE COST DECEMBER 31, 1997
----- ------------- ----------- -----------------
<S> <C> <C> <C>
Bank of New York 144A..... 12/11/96 3,866,121 4,105,274
BankAmerica Institutional
Capital. 144A............. 11/26/96 2,473,850 2,573,475
British Aerospace Finance,
Inc. 144A................. 6/26/97 1,885,883 2,031,252
Donaldson, Lufkin &
Jenret, Inc. 144A......... 9/26/97 1,936,631 1,948,706
DR Investments 144A Sr..... 5/6/97 3,797,834 3,894,354
Edison Mission Energy
Funding Note 144A......... 1/7/97 2,836,890 2,976,483
Electronic Data Systems
Corp. 144A................ 5/19/95 3,297,393 2,341,423
K-III Communications Corp.
144A Sr. 1/22/96 1,506,875 1,526,250
Petroliam Nasional Berthad
144A...................... 10/02/97 1,998,300 1,907,600
Petroliam Nasional Berthad
144A...................... 10/15/97 2,577,718 2,545,946
RailcarLeasing 1997-1 A1
144A SEQ.................. 4/1/97 3,309,864 3,285,170
Wells Fargo Capital
Securities 144A........... 4/9/97 1,802,171 2,023,496
Zurich Capital Trust 144A.. 6/18/97 3,804,194 3,977,478
</TABLE>
The aggregate value of restricted securities at December 31, 1997 was
$35,136,907 or 8.52% of the Income Portfolio's net assets.
See Notes to Financial Statements.
MSF-7
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH MONEY MARKET PORTFOLIO
December 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ------------------------------------------------------------------------------------------
BANKERS' ACCEPTANCES: 5.1%
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$2,000,000 Wachovia Bank Corp. 6.100% 4/06/98 $ 1,999,504
-----------
TOTAL BANKERS' ACCEPTANCES
(Cost: $1,999,504)......................................... $ 1,999,504
-----------
- -----------------------------------------------------------------------------------------
COMMERCIAL PAPER: 88.9%
- -----------------------------------------------------------------------------------------
3,411,000 Anheuser Busch, Inc. 6.650% 1/02/98 3,410,370
2,000,000 Associates Corp. of North
America 6.625% 5/15/98 2,003,331
2,000,000 Bell Atlantic Financial
Services 6.250% 1/05/98 1,993,009
1,500,000 Bellsouth Telecomm, Inc. 5.750% 2/25/98 1,486,823
1,500,000 Beneficial Corp. 5.830% 1/08/98 1,483,555
2,000,000 Canadian Wheat Board 5.460% 1/06/98 1,998,483
2,000,000 DuPont (E.I.) de Nemours
& Co. 5.660% 2/09/98 1,987,737
2,000,000 General Electric Capital
Corp. 6.080% 1/05/98 1,991,752
500,000 General Motors Acceptance
Corp. 5.710% 3/02/98 495,242
1,400,000 General Motors Acceptance
Corp. 5.700% 3/31/98 1,380,272
1,950,000 Goldman Sachs Group LP 5.720% 3/13/98 1,928,002
1,000,000 Hewlett-Packard Co. 5.950% 1/21/98 996,694
1,500,000 Household Finance Corp. 5.820% 1/12/98 1,497,465
2,000,000 Merrill Lynch & Co., Inc. 5.690% 2/27/98 1,981,982
1,500,000 Morgan (J.P.) & Co., Inc. 5.600% 1/06/98 1,498,833
2,000,000 Northern Illinois Gas Co. 5.520% 1/09/98 1,997,547
2,000,000 Penney (J.C.) Funding
Corp. 5.520% 1/22/98 1,993,560
1,000,000 Procter & Gamble Co. 5.880% 1/05/98 999,347
2,000,000 Sears Roebuck Acceptance
Corp. 5.720% 2/13/98 1,986,335
2,000,000 Toronto-Dominion Holdings 5.550% 1/02/98 1,999,692
-----------
TOTAL COMMERCIAL PAPER
(Cost: $35,110,031)........................................ 35,110,031
-----------
</TABLE>
______________________________________________________________________________
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS: 5.1%
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2,000,000 Federal National Mortgage
Assoc. 5.890% 5/21/98 1,999,174
---------------
TOTAL FEDERAL AGENCY OBLIGATIONS
(Cost: $1,999,174)..................................... 1,999,174
---------------
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.1%
(Cost: $39,108,709).................................... 39,108,709
OTHER ASSETS LESS LIABILITIES: 0.9%.................... 371,130
--------------
NET ASSETS: 100.0%..................................... $39,479,839
==============
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
MSF-8
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------------------------
COMMON STOCK: 49.6%
- ------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE: 1.3%
307,600 Boeing Co. $15,053,175
10,643 +*Raytheon Co. Cl. A 524,843
203,300 +Raytheon Co. Cl. B 10,266,650
-----------
25,844,668
- ------------------------------------------------------------------------------------
AUTOMOTIVE: 1.0%
166,900 General Motors Corp. 10,118,312
354,100 *Renault SA 9,960,809
-----------
20,079,121
- ------------------------------------------------------------------------------------
BANKING: 4.8%
316,300 Ahmanson (H.F.) & Co. 21,172,331
375,000 Banc One Corp. 20,367,187
341,400 BankAmerica Corp. 24,922,200
279,200 +NationsBank Corp. 16,978,850
189,900 *Washington Mutual, Inc. 12,112,059
-----------
95,552,627
- ------------------------------------------------------------------------------------
BROADCASTING: 2.9%
341,000 CBS Corp. 10,038,187
337,800 +Time Warner, Inc. 20,943,600
592,800 +*U.S. West, Inc.-Media Group 17,117,100
208,200 *Viacom, Inc. Cl. B 8,627,287
-----------
56,726,174
- ------------------------------------------------------------------------------------
BUSINESS SERVICES: 0.6%
184,077 *Cendant Corp. 6,327,663
115,200 HBO & Co. 5,526,000
-----------
11,853,663
- ------------------------------------------------------------------------------------
CHEMICALS: 2.5%
372,800 Du Pont (E.I.) de Nemours & Co. 22,391,300
54,100 Monsanto Co. 2,272,200
251,300 Rohm & Haas Co. 24,061,975
-----------
48,725,475
- ------------------------------------------------------------------------------------
DRUGS & HEALTH CARE: 3.6%
218,700 Bristol-Myers Squibb Co. 20,694,487
146,518 *Novartis AG ADR 11,903,855
166,500 Pfizer, Inc. 12,414,656
162,800 Schering-Plough Corp. 10,113,950
124,800 Warner-Lambert Co. 15,475,200
-----------
70,602,148
- ------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT: 2.2%
242,800 AMP, Inc. $10,197,600
460,500 General Electric Co. 33,789,187
-----------
43,986,787
- ------------------------------------------------------------------------------------
ELECTRONICS: 1.8%
114,300 *Analog Devices, Inc. 3,164,681
160,320 *Ericsson (L. M.) Telephone Co. ADR Cl. B 5,986,950
99,300 *Intel Corp. 6,972,722
134,100 *Lucent Technologies, Inc. 10,711,237
164,600 *Teradyne, Inc. 5,267,200
97,000 *Texas Instruments, Inc. 4,365,000
-----------
36,467,790
- -------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE: 0.5%
104,835 Disney (Walt) Co. 10,385,217
- -------------------------------------------------------------------------------------
FINANCIAL SERVICES: 0.8%
307,899 Travelers Group, Inc. 16,588,059
- ------------------------------------------------------------------------------------
FOOD & BEVERAGES: 1.7%
107,700 Coca-Cola Co. 7,175,512
159,900 General Mills, Inc. 11,452,837
315,100 Heinz (H.J.) Co. 16,011,019
----------
34,639,368
- ------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 1.1%
284,600 Fort James Corp. 10,885,950
221,500 Weyerhaeuser Co. 10,867,344
-----------
21,753,294
- ------------------------------------------------------------------------------------
HOSPITAL MANAGEMENT: 0.4%
229,700 Tenet Healthcare Corp. 7,608,812
- ------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS: 0.9%
60,200 Gillette Co. 6,046,338
137,300 Procter & Gamble Co. 10,958,256
-----------
17,004,594
- ------------------------------------------------------------------------------------
INSURANCE: 2.4%
235,500 ACE, Ltd. 22,725,750
73,400 General Re Corp. 15,560,800
110,200 St. Paul Cos., Inc. 9,043,287
-----------
47,329,837
- ------------------------------------------------------------------------------------
</TABLE>
MSF-9
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------------------------
MACHINERY: 0.4%
<S> <C> <C>
205,200 Browning-Ferris Industries, Inc. $ 7,592,400
- ------------------------------------------------------------------------------------
MEDICAL SUPPLY: 1.1%
97,100 +*Boston Scientific Corp. 4,454,462
71,100 Guidant Corp. 4,425,975
186,600 Johnson & Johnson 12,292,275
-----------
21,172,712
- ------------------------------------------------------------------------------------
METALS-STEEL & IRON: 0.5%
449,500 +British Steel Corp. PLC ADR 9,636,156
55,700 *Ispat International NV Cl. A 1,204,512
-----------
10,840,668
- ------------------------------------------------------------------------------------
MISCELLANEOUS: 1.6%
707,600 Tyco International Ltd. 31,886,225
- ------------------------------------------------------------------------------------
OFFICE & BUSINESS EQUIPMENT: 2.6%
201,900 *Cisco Systems, Inc. 11,268,544
189,700 Compaq Computer Corp. 10,706,194
177,300 IKON Office Solutions, Inc. 4,986,562
125,700 International Business Machines Corp. 13,143,506
159,800 Xerox Corp. 11,795,237
-----------
51,900,043
- ------------------------------------------------------------------------------------
OIL: 1.0%
344,745 TOTAL SA ADR 19,133,347
- ------------------------------------------------------------------------------------
OIL & GAS EXPLORATION: 1.3%
149,000 Anadarko Petroleum Corp. 9,042,437
96,600 ENI SPA ADR 5,512,237
518,700 *Seagull Energy Corp. 10,698,187
-----------
25,252,861
- ------------------------------------------------------------------------------------
OIL-DOMESTIC: 1.1%
300,900 Oryx Energy Co. 7,672,950
340,800 Unocal Corp. 13,227,300
-----------
20,900,250
- ------------------------------------------------------------------------------------
OIL-INTERNATIONAL: 0.6%
202,900 +Royal Dutch Petroleum Co. 10,994,644
- ------------------------------------------------------------------------------------
RETAIL GROCERY: 1.8%
582 .*Food 4 Less Holdings, Inc. (Wts.) 144A 153,491
491,900 *Kroger Co. 18,169,556
263,200 +Safeway, Inc. 16,647,400
-----------
34,970,447
- ------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------------------------
RETAIL TRADE: 4.3%
243,900 CVS Corp. $ 15,624,844
227,700 Dayton-Hudson Corp. 15,369,750
240,700 Home Depot, Inc. 14,171,212
282,800 Rite Aid Corp. 16,596,825
353,600 *Staples, Inc. 9,834,500
441,400 *Toys 'R Us, Inc. 13,876,512
------------
85,473,643
- ------------------------------------------------------------------------------------
SOFTWARE: 0.6%
5,887 *Anacomp, Inc. 91,616
1,495 *Anacomp, Inc. (Wts.) 9,998
93,000 *Microsoft Corp. 12,017,344
------------
12,118,958
- ------------------------------------------------------------------------------------
TOBACCO: 1.1%
488,000 Philip Morris Cos., Inc. 22,112,500
- ------------------------------------------------------------------------------------
TRANSPORTATION-TRUCKING: 0.0%
500 .*Crown Packaging Holdings Ltd. (Wts.) 144A 63
- ------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 1.3%
180,200 FPL Group, Inc. 10,665,587
365,000 Texas Utilities Co. 15,170,312
------------
25,835,899
- ------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 1.8%
223,900 +Bell Atlantic Corp. 20,374,900
547,300 +*WorldCom, Inc. 16,572,928
------------
36,947,828
- ------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $819,976,106)............................ 982,280,122
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE BONDS: 19.6%
- -------------------------------------------------------------------------------------------
ASSET BACKED: 1.5%
$ Arcadia Automobile
3,500,000 Rec. Ser 1997-C A5 SEQ 6.550% 6/15/01-05 $ 3,544,844
8,700,000 AT&T Universal Card
Master Tr. Ser. 5.950% 10/17/00 8,686,341
1995-2A
8,655,000 Ford Credit Auto
Owner Tr. Ser. 1997-B 6.050% 4/15/99-01 8,703,684
A3 SEQ
8,480,000 World Omni Automobile
Lease Tr. Ser. 1997-B 6.180% 11/25/00-03 8,482,968
A3 SEQ
------------
29,417,837
- --------------------------------------------------------------------------------------------
</TABLE>
MSF-10
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ------------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- ------------------------------------------------------------------------------------------------
BANKING: 2.1%
<S> <C> <C> <C> <C>
$2,950,000 Advanta Master Trust
II Ser. 1995-F A1 6.050% 8/01/00-03 $ 2,944,454
2,850,000 . Bank of New York 144A 7.780% 12/01/06-26 2,962,034
3,500,000 . BankAmerica
Institutional Capital
144A 7.700% 12/31/06-26 3,602,865
1,725,000 Capital One Bank Sr. 7.080% 10/30/01 1,765,055
6,675,000 First Deposit Master
Trust Ser. 1993-2 5.750% 6/15/98 6,668,726
4,600,000 + NB Capital Trust 8.250% 4/15/07-27 5,019,796
Ser.1995-1 A
2,800,000 Nations Bank Master 6.450% 8/15/00 2,827,104
Trust Ser. 1995-1
8,175,000 Prime Credit Card
Master Trust Ser. 6.750% 8/15/02 8,338,500
1995-1 A
2,100,000 Standard Credit Card
Master Tr. Ser 1991-3 A 8.875% 7/07/98 2,129,526
2,800,000 . State Street
Institutional Capital
A 144A 7.940% 12/30/06-26 2,973,768
3,000,000 . Wells Fargo Capital
Securities 144A 7.730% 12/01/06-26 3,113,070
------------
42,344,898
- ------------------------------------------------------------------------------------------------
BROADCASTING: 0.4%
7,650,000 TCI Communications,
Inc. Sr. 7.250% 6/15/99 7,737,746
- ------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS: 2.5%
6,006,999 Amresco Commercial
Mortgage Sec. Ser
1997-C1 A SEQ 6.730% 6/17/02-04 6,107,616
983,397 Countrywide Ser.
1993-E A1 PAC 6.500% 1/25/97-24 982,783
2,140,215 Countrywide Ser. 7.125% 12/25/98-23 2,148,904
1993-5 A4 SEQ
4,300,000 Credit Suisse First
Boston Ser.1997-C2 A2 6.520% 7/17/05-07 4,308,063
SEQ
3,814,663 .Donaldson, Lufkin &
Jenret, Inc. 144A 6.550% 11/15/03-06 3,847,446
4,150,000 First Union Lehman
Bros. Ser 1997-C2 A-2 6.600% 05/18/05-07 4,151,297
SEQ
- ------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS: (CONTINUED)
$7,425,000 First USA Credit Card
Master Tr. Ser. 6.420% 7/17/02 $ 7,496,930
1997-6 A
7,500,000 General Electric
Capital Mtg.
Services., Inc. Ser. 6.500% 1/25/00-24 7,434,375
1994-1 A6 TAC
7,672,192 Lehman Commercial
Mortgage Ser. 97-LL1 6.790% 10/12/02-04 7,832,829
A1 SEQ
3,632,799 .Morgan Stanley
Capital Ser. 7.020% 10/15/03-06 3,696,373
97-WF1-A1 144A
832,491 Prudential Home Loan
Mortgage Ser. 93-29
A-6 PAC 6.750% 8/25/98-08 833,790
773,405 Residential Funding
Corp. Ser. 1993-S25
A1 PAC 6.500% 7/25/98-08 771,951
------------
49,612,357
- ------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: 6.5%
2,600,000 Allmerica Financial
Corp. Sr. 7.625% 10/15/25 2,755,584
3,850,000 American Express
Credit Account Master
Tr. Ser. 1997-1 A 6.400% 9/15/00 3,901,706
4,200,000 Associates Corp. of
North America Sr. 6.450% 10/15/01 4,230,114
4,100,000 Associates Corp. of
North America 6.375% 10/15/02 4,118,327
2,550,000 Associates Corp. of
North America 6.750% 7/15/01 2,592,840
6,047,985 Banc One Auto
Receivable Grant
Trust 97-A A 6.270% 11/20/99-03 6,059,325
1,200,000 Beneficial Corp. 9.125% 2/15/98 1,203,720
3,900,000 Chase Manhattan
Credit Card Master
Trust Ser. 1996-3 A 7.040% 5/15/01 4,012,125
3,300,000 Cigna Corp. Deb. 7.875% 5/15/27 3,537,831
3,230,000 CIT Group Holdings,
Inc. 6.750% 5/14/01 3,288,269
5,200,000 CIT Group Holdings,
Inc. Sr. 6.700% 5/28/01 5,286,424
14,600,000 Commercial Credit
Group, Inc. 6.450% 7/01/02 14,705,558
9,725,000 Countrywide Home Loan 6.580% 9/21/01 9,839,172
</TABLE>
MSF-11
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ---------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL SERVICES: (CONTINUED)
$ 6,600,000 Countrywide Home
Loan, Inc. 7.260% 5/10/04 $ 6,870,534
6,600,000 FINOVA Capital Corp.
Sr. 7.125% 5/01/02 6,788,628
4,400,000 Fleet Mortgage Group,
Inc. 7.060% 7/26/02 4,502,696
5,350,000 Ford Credit Auto Loan
Master Trust Ser.95-1 6.500% 8/15/00 5,393,442
1,800,000 GE Global Insurance
Holding Corp. 7.000% 2/15/26 1,868,688
2,500,000 General Motors
Acceptance Corp. 7.050% 2/02/98 2,501,725
4,325,000 GMAC Commercial
Mortgage Security, 6.550% 4/15/06-07 4,357,265
Inc.
2,400,000 Household Finance
Corp. Sr. 6.750% 6/01/00 2,427,024
3,775,000 MBNA Corp. Sr. 6.875% 11/15/02 3,805,540
1,500,000 PennCorp Financial
Group Sr. 9.250% 12/15/98-03 1,571,250
5,061,186 .Railcar Leasing Ser.
1997-1 A1 SEQ 144A 6.750% 7/15/02-06 5,162,410
3,700,000 Sears Credit Account
Master. Tr. II Ser. 6.200% 7/15/02-07 3,702,601
1997-1 A
2,600,000 Sears Credit Account
Master Trust II Ser. 8.100% 6/15/00-04 2,684,500
1995-2 A
4,300,000 Travelers Capital III 7.750% 12/01/06-36 4,459,229
7,175,000 .Zurich Capital Trust
144A 8.376% 6/01/07-37 7,818,741
------------
129,445,268
- ---------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED: FEDERALLY CHARTERED: 0.3%
2,250,000 Big Rivers Electric
Cooperative Trust 10.700% 9/15/98-17 2,375,460
3,750,000 Deseret Generation
Cooperative Trust 10.110% 12/15/97-17 3,947,775
------------
6,323,235
- ---------------------------------------------------------------------------------------------
GOVERNMENT SPONSORED: STATE CHARTERED: 0.2%
3,675,000 New Jersey Economic
Development Authority
State Pension Funding
Ser. A 7.425% 2/15/29 4,057,347
- ---------------------------------------------------------------------------------------------
HEALTHCARE SERVICES: 0.8%
$ 4,525,000 Columbia/HCA
Healthcare Corp. 6.410% 6/15/00 $ 4,457,442
3,600,000 Columbia/HCA
Healthcare Corp. 7.690% 6/15/25 3,466,368
3,725,000 Columbia/HCA
Healthcare Corp. 7.500% 12/15/23 3,512,265
3,700,000 Columbia/HCA
Healthcare Corp. 6.870% 9/15/03 3,627,813
------------
15,063,888
- ---------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS: 0.4%
7,700,000 Fort James Corp. 6.625% 9/15/04 7,724,563
- ---------------------------------------------------------------------------------------------
INDUSTRIALS: 3.4%
2,825,000 Chesapeake Energy
Corp. Sr. 7.875% 3/15/04 2,789,688
1,500,000 Chevron Corp. Profit
Sharing Amort. Note 8.110% 12/01/01-04 1,600,755
3,300,000 .Electronic Data
Systems Corp. 144A 6.850% 5/15/00 3,359,433
4,100,000 HealthSouth Corp. Sr. 9.500% 4/01/98-01 4,318,325
5,800,000 Honeywell, Inc. 6.750% 3/15/02 5,917,102
8,450,000 Ingersoll-Rand Co. 6.200% 11/15/99 8,469,266
2,075,000 .K-III Communications
Corp. 144A Sr. 8.500% 2/01/01-06 2,111,313
1,550,000 Lear Seating Corp. 8.250% 2/01/98-02 1,569,375
Sub.
3,400,000 Loews Corp. 6.750% 12/15/06 3,423,902
10,600,000 Oracle Corp. Sr. 6.720% 2/15/04 10,577,422
2,000,000 Oryx Energy Co. 8.125% 10/15/05 2,133,620
4,925,000 Owens Illinois, Inc. 7.850% 5/15/04 5,173,910
Sr.
2,225,000 +Paging Network, Inc.
Sr. 8.875% 2/01/99-06 2,180,500
2,000,000 Paging Network, Inc. 10.000% 10/15/01-08 2,080,000
Sr.
3,500,000 Tenet Healthcare
Corp. Sr. 7.875% 1/15/03 3,543,750
7,250,000 Viacom, Inc. Sr. 7.750% 6/01/05 7,373,903
------------
66,622,264
- ---------------------------------------------------------------------------------------------
NEWSPAPERS: 0.4%
3,825,000 News America
Holdings, Inc. Sr. 7.750% 1/20/24 3,980,219
3,900,000 News America
Holdings, Inc. 7.375% 10/17/08 4,010,721
------------
7,990,940
- ---------------------------------------------------------------------------------------------
</TABLE>
MSF-12
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- ---------------------------------------------------------------------------------------------
RESTAURANT: 0.2%
$ 4,400,000 Darden Restaurants,
Inc. 7.125% 2/01/16 $ 4,226,860
- ---------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 0.7%
3,350,000 CMS Energy Corp. Sr. 8.125% 5/15/02 3,444,269
4,150,000 .Edison Mission Energy
Funding Note 144A 7.330% 9/15/05-08 4,334,177
5,350,000 Southern California
Edison Co. 6.500% 6/01/01 5,396,064
-----------
13,174,510
- ---------------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 0.2%
5,000,000 AirTouch
Communications, Inc. 7.000% 10/01/03 5,119,400
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost: $382,641,661).................................. 388,861,113
------------
- ---------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS: 1.6%
- ---------------------------------------------------------------------------------------------
3,700,000 Federal Home Loan
Mortgage Corp. 7.240% 5/15/98-02 3,712,728
5,875,000 Federal National
Mortgage Assoc. 6.800% 9/25/04-22 5,972,290
43,832 Federal National
Mortgage Assoc. 9.000% 4/01/16 46,571
1,336,929 Federal National
Mortgage Assoc. 8.500% 2/01/09 1,402,519
1,120,414 Federal National
Mortgage Assoc. 8.000% 6/01/08 1,170,833
603,173 Federal National
Mortgage Assoc. 7.250% 9/01/07 620,490
2,947,672 Federal National
Mortgage Assoc. 7.000% 12/01/07 3,016,559
3,945,059 Federal National
Mortgage Assoc. 8.500% 8/01/22 4,155,844
4,908,455 Government National
Mortgage Assoc. 8.000% 11/15/17 5,164,578
5,182,103 Government National
Mortgage Assoc. ARM 6.500% 5/15/09 5,233,872
1,977,985 Government National
Mortgage Assoc. Pool 6.000% 2/15/09 1,966,849
------------
TOTAL FEDERAL AGENCY OBLIGATIONS
(Cost: $32,195,483)................................... 32,463,133
------------
- ---------------------------------------------------------------------------------------------
FEDERAL TREASURY OBLIGATIONS: 15.0%
- -------------------------------------------------------------------------------------------
$ 5,725,000 +U.S. Treasury Bond 12.000% 8/15/08-13 $ 8,435,444
24,475,000 +U.S. Treasury Bond 8.750% 5/15/17 32,088,928
60,425,000 +U.S. Treasury Bond 8.125% 8/15/21 76,220,699
3,799,090 +U.S. Treasury
Inflation Indexed 3.375% 1/15/07 3,699,364
Notes
9,000,000 +U.S. Treasury Note 6.250% 2/28/02 9,164,520
21,425,000 U.S. Treasury Note 6.750% 5/31/99 21,739,733
29,525,000 +U.S. Treasury Note 6.875% 8/31/99 30,078,594
13,625,000 +U.S. Treasury Note 7.125% 9/30/99 13,948,594
43,025,000 U.S. Treasury Note 7.875% 11/15/04 48,100,659
10,000,000 U.S. Treasury Note 6.500% 8/15/05 10,434,400
73,450,000 U.S. Treasury Note
Strip Interest 0.000% 5/15/07 42,603,204
-----------
TOTAL FEDERAL TREASURY OBLIGATIONS
(Cost: $285,767,631)................................. 296,514,139
-----------
- --------------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: 3.2%
- --------------------------------------------------------------------------------------------
25,250,000 AUD Australian Government 9.000% 9/15/04 19,265,511
11,375,000 NZD New Zealand 8.000% 11/15/06 7,012,547
17,225,000 NZD New Zealand 10.000% 3/15/02 10,949,956
14,450,000 GBP UK Treasury 8.500% 12/07/05 26,782,465
-----------
TOTAL FOREIGN OBLIGATIONS
(Cost: $67,893,769).................................. 64,010,479
-----------
- --------------------------------------------------------------------------------------------
YANKEE BONDS: 2.1%
- --------------------------------------------------------------------------------------------
3,625,000 .British Aerospace
Finance, Inc. 144A 7.500% 7/01/27 3,875,415
2,475,000 City of Naples Note 7.520% 7/15/01-06 2,590,385
6,700,000 .DR Investments 144A
Sr. 7.100% 5/15/02 6,866,361
5,450,000 Hydro Quebec Deb.
Ser. HS 9.400% 2/01/21 7,037,040
3,000,000 Norsk Hydro AS Deb. 7.150% 11/15/25 3,093,390
8,100,000 .Petroliam Nasional
Berhad 144A 7.125% 8/15/05 7,725,780
5,675,000 Province Of Quebec
Deb. 7.125% 2/09/24 5,844,739
3,600,000 Talisman Energy Deb. 7.125% 6/01/07 3,724,525
-----------
TOTAL YANKEE BONDS
(Cost: $39,280,272).................................. 40,757,635
-----------
- --------------------------------------------------------------------------------------------
</TABLE>
MSF-13
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- --------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 8.8%
<S> <C> <C> <C> <C>
$ American Express
10,883,000 Credit Corp. 5.750% 1/08/98 $ 10,883,000
19,911,000 American Express
Credit Corp. 6.000% 1/13/98 19,911,000
30,000,000 Bell Atlantic
Financial Services 6.250% 1/05/98 29,979,167
28,340,000 Bell Atlantic
Financial Services 5.840% 1/23/98 28,238,858
4,258,000 Commercial Credit Co. 5.950% 1/16/98 4,258,000
1,766,000 Deere & Co. 5.750% 1/13/98 1,766,000
6,104,000 Deere (John) Capital
Corp. 5.930% 1/05/98 6,104,000
7,487,000 Ford Motor Credit Co. 6.100% 1/08/98 7,487,000
21,928,000 General Electric
Capital Corp. 5.910% 1/13/98 21,928,000
15,000,000 Goldman Sachs Group LP
5.840% 1/05/98 14,990,266
29,572,000 Household Finance
Corp. 5.820% 1/8/98 29,572,000
------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $175,117,291)................................. 175,117,291
------------
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.9%
(Cost: $1,802,872,213)............................... 1,980,003,912
OTHER ASSETS LESS LIABILITIES: 0.1% 2,227,802
--------------
NET ASSETS: 100.0%................................... $1,982,231,714
==============
- --------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- -----------
* Non-income producing security.
+ Securities on loan.
. Restricted security.
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $116,410,035
with collateral backing valued at $118,838,443.
<TABLE>
<CAPTION>
RESTRICTED SECURITIES: (Note 2)
- -------------------------------
Valuation
as of
Acquisition Acquisition December 31,
Issue Date Cost 1997
----- ---- ---- ----
<S> <C> <C> <C>
Bank of New York 144A..... 12/24/96 $ 2,775,074 $ 2,962,034
BankAmerica Institutional
Capital 144A.............. 11/26/96 3,463,390 3,602,865
British Aerospace Finance,
Inc. 144A................. 6/26/97 3,598,066 3,875,415
Crown Packaging Holdings,
Ltd. (Wts.) 144A.......... 6/1/94 20,000 63
Donaldson, Lufkin &
Jenret, Inc. 144A......... 9/26/97 3,823,604 3,847,446
DR Investments 144A Sr. 5/6/97 6,696,181 6,866,361
Edison Mission Energy
Funding 144A Note......... 1/7/97 4,130,910 4,334,177
Electronic Data Systems
Corp. 144A................ 5/19/95 3,297,393 3,359,433
Food For Less Holdings, Inc.
(Wts.)144A................. 6/1/94 40,478 153,491
K-III Communications Corp.
144A Sr. 1/22/96 2,084,125 2,111,313
Morgan Stanley Capital
Ser. 97-WF1-A1 144A....... 6/17/97 3,643,450 3,696,373
Petroliam Nasional Berthad 10/2/97-
144A...................... 11/19/97 7,979,799 7,725,780
RailcarLeasing Ser. 1997-1
A1 144A SEQ............... 4/1/97-4/15/97 4,989,618 5,162,410
State Street Institutional
Captial A 144A............ 12/18/96 2,757,760 2,973,768
Wells Fargo Capital
Securities 144A........... 4/8/97 2,775,570 3,113,070
Zurich Capital Trust 144A.. 6/18/97-6/26/97 7,480,202 7,818,741
</TABLE>
The aggregate value of restricted securities at December 31, 1997 was
$61,602,740 or 3.11% of the Diversified Portfolio's net assets.
See Notes to Financial Statements.
MSF-14
<PAGE>
METROPOLITAN SERIES FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH AGGRESSIVE GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- -------------------------------------------------------------------------------
COMMON STOCK: 93.4%
- -------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE: 0.8%
230,700 + Boeing Co. $ 11,289,881
- -------------------------------------------------------------------------------
AUTOMOTIVE: 2.1%
490,000 + * Budget Group, Inc. Cl. A 16,935,625
190,600 Danaher Corp. 12,031,625
------------
28,967,250
- -------------------------------------------------------------------------------
BANKING: 3.1%
163,200 + Ahmanson (H.F.) & Co. 10,924,200
259,800 BankAmerica Corp. 18,965,400
276,600 Bank United Corp. Cl. A 13,605,262
-------------
43,485,862
- -------------------------------------------------------------------------------
BROADCASTING: 2.5%
709,400 + CBS Corp. 20,882,962
184,300 + Chancellor Media Corp. 13,759,147
-------------
34,642,109
- -------------------------------------------------------------------------------
BUSINESS SERVICES: 19.0%
875,400 + * Caribiner International, Inc. 38,955,300
2,161,829 + * Cendant Corp. 74,312,864
907,600 * Creative Technology Ltd. 19,910,475
374,800 + HBO & Co. 17,978,687
398,225 + * Outdoor Systems, Inc. 15,281,884
2,246,500 * Republic Industries, Inc. 52,371,532
560,300 + * Snyder Communications, Inc. 20,450,950
205,350 + * U.S. Office Products Co. 4,004,325
398,400 * Universal Outdoor Holdings, Inc. 20,766,600
-------------
264,032,617
- -------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICE: 2.5%
391,100 + * America Online, Inc. 34,881,231
- -------------------------------------------------------------------------------
CONSTRUCTION & MINING EQUIPMENT: 0.6%
353,400 * Terex Corp. 8,304,900
- -------------------------------------------------------------------------------
COSMETICS: 0.8%
189,800 + * Avon Products, Inc. 11,648,975
- -------------------------------------------------------------------------------
DRUGS & HEALTH CARE: 3.0%
46,000 Cooper Cos., Inc. 1,880,250
258,500 Schering-Plough Corp. 16,059,313
195,200 Warner-Lambert Co. 24,204,800
-------------
42,144,363
- -------------------------------------------------------------------------------
EDUCATION: 0.5%
157,000 * Apollo Group, Inc. Cl. A $ 7,437,875
- -------------------------------------------------------------------------------
ELECTRONICS: 8.5%
769,400 * Advanced Fibre Communications, Inc. 22,504,950
302,000 + * Analog Devices, Inc. 8,361,625
627,300 + * CHS Electronics, Inc. 10,624,894
207,500 * Intel Corp. 14,570,391
364,500 * Kulicke & Soffa Industries, Inc. 6,811,594
334,800 + Motorola, Inc. 19,104,525
48,700 * P-Com, Inc. 852,250
187,800 + * Sanmina Holdings, Inc. 12,782,138
207,500 + * Tellabs, Inc. 10,952,109
250,100 + Texas Instruments, Inc. 11,254,500
-------------
117,818,976
- -------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE: 3.4%
218,300 * Ascent Entertainment Group, Inc. 2,237,575
524,000 * Florida Panthers Holdings, Inc. Cl. A 9,039,000
581,800 International Game Technology 14,690,450
639,900 + News Corp. Ltd. ADS 14,277,769
288,100 * Ticketmaster Group, Inc. 6,662,313
-------------
46,907,107
- -------------------------------------------------------------------------------
FINANCIAL SERVICES: 4.2%
121,600 * Hartford Financial Services Group, Inc. 11,377,200
268,600 + Merrill Lynch & Co., Inc. 19,591,013
510,050 Travelers Group, Inc. 27,478,944
-------------
58,447,157
- -------------------------------------------------------------------------------
FOOD & BEVERAGES: 0.7%
191,800 * Peapod, Inc. 1,234,713
226,400 + * Starbucks Corp. 8,695,175
-------------
9,929,888
- -------------------------------------------------------------------------------
HEALTHCARE SERVICES: 0.0%
12,905 * Coram Healthcare Corp. 43,554
- -------------------------------------------------------------------------------
HOSPITAL MANAGEMENT: 1.0%
424,000 * Tenet Healthcare Corp. 14,045,000
- -------------------------------------------------------------------------------
HOTEL & MOTEL: 1.7%
1,006,900 * Extended Stay America, Inc. 12,523,318
305,300 * Interstate Hotels Co. 10,704,581
-------------
23,227,899
- -------------------------------------------------------------------------------
</TABLE>
MSF-15
<PAGE>
METROPOLITAN SERIES FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH AGGRESSIVE GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE: 2.5%
160,000 ACE Ltd. $ 15,440,000
70,500 Aetna, Inc. 4,974,656
382,800 + Provident Cos., Inc. 14,785,650
--------------
35,200,306
- --------------------------------------------------------------------------------
MEDICAL SUPPLY: 1.6%
155,600 + * Boston Scientific Corp. 7,138,150
553,700 * Trigon Healthcare, Inc. 14,465,413
--------------
21,603,563
- --------------------------------------------------------------------------------
METALS-STEEL & IRON: 0.1%
76,200 * Ispat International NV Cl. A 1,647,825
- --------------------------------------------------------------------------------
MINING: 0.1%
73,200 Chicago Bridge & Iron Co. NV 1,189,500
- --------------------------------------------------------------------------------
MISCELLANEOUS: 1.6%
506,800 Tyco International Ltd. 22,837,675
- --------------------------------------------------------------------------------
OFFICE & BUSINESS EQUIPMENT: 8.6%
392,400 * Cisco Systems, Inc. 21,900,825
344,900 Compaq Computer Corp. 19,465,294
114,200 Diebold, Inc. 5,781,375
462,600 * EMC Corp. 12,692,587
228,500 Hewlett-Packard Co. 14,281,250
2,156,600 + * Iomega Corp. 26,822,713
486,800 + * Sun Microsystems, Inc 19,441,575
---------------
120,385,619
- --------------------------------------------------------------------------------
OIL-SERVICES: 0.9%
113,000 + Ensco International, Inc. 3,785,500
38,000 * NewPark Resources, Inc. 665,000
94,000 Schlumberger Ltd. 7,567,000
----------------
12,017,500
- --------------------------------------------------------------------------------
POLLUTION CONTROL: 0.3%
97,900 * USA Waste Services, Inc. 3,842,575
- --------------------------------------------------------------------------------
PRINTING & PUBLISHING: 0.7%
277,800 Valassis Communications, Inc. 10,278,600
- --------------------------------------------------------------------------------
RESTAURANT: 0.2%
185,200 + Apple South, Inc. 2,436,537
- --------------------------------------------------------------------------------
RETAIL GROCERY: 1.5%
338,900 Safeway, Inc. 21,435,425
- --------------------------------------------------------------------------------
RETAIL TRADE: 9.4%
73,000 + * Abercrombie & Fitch Co. Cl. A $ 2,281,250
591,900 * Borders Group, Inc. 18,533,869
43,000 CVS Corp. 2,754,687
196,800 Dayton-Hudson Corp. 13,284,000
425,000 * Jones Apparel Group, Inc. 18,275,000
352,400 * Linens 'n Things, Inc. 15,373,450
484,575 * Men's Wearhouse, Inc. 16,960,125
457,000 + * Proffitts, Inc. 12,995,938
619,800 * Sunglass Hut International, Inc. 3,931,856
821,800 * Toys 'R Us, Inc. 25,835,338
----------------
130,225,513
- --------------------------------------------------------------------------------
SOFTWARE: 5.0%
176,000 + * Ascend Communications, Inc. 4,328,500
421,800 Computer Associates International, Inc. 22,302,675
125,100 * Geoworks 1,188,450
148,300 * i2 Technologies, Inc. 7,827,459
269,800 * Industri Matematik International Corp. 7,975,962
126,100 * Microsoft Corp. 16,294,484
406,900 * Oracle Systems Corp. 9,066,241
388 * Structural Dynamics Research Corp. 8,730
----------------
68,992,501
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT & SERVICES: 1.5%
147,000 + * China Telecom (Hong Kong) Ltd. ADR 4,933,687
207,400 * Networks Associates, Inc. 10,946,831
88,300 * Qwest Communications International, Inc. 5,242,813
----------------
21,123,331
- --------------------------------------------------------------------------------
TEXTILES & APPAREL: 1.9%
452,500 * The Timberland Co. Cl. A 26,273,281
- --------------------------------------------------------------------------------
TOBACCO: 1.1%
328,400 Philip Morris Cos., Inc. 14,880,625
- --------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 2.0%
651,200 MCI Communications Corp. 27,899,850
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $1,102,633,693)................. 1,299,533,870
------------------
- --------------------------------------------------------------------------------
</TABLE>
MSF-16
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH AGGRESSIVE GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ----------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 5.9%
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$2,030,000 American Express
Credit Corp. 6.250% 1/02/98 $ 2,030,000
26,000,000 American Express
Credit Corp. 6.015% 1/13/98 26,000,000
9,989,000 Deere (John) Capital
Corp. 5.930% 1/05/98 9,989,000
916,000 Ford Motor Credit Co. 6.000% 1/06/98 916,000
2,745,000 Ford Motor Credit Co. 5.850% 1/09/98 2,745,000
20,819,000 Ford Motor Credit Co. 5.750% 1/06/98 20,819,000
20,000,000 General Electric
Capital Corp. 6.080% 1/08/98 20,000,000
--------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $82,499,000)........................................ 82,499,000
--------------
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.3%
(Cost: $1,185,132,693)..................................... 1,382,032,870
OTHER ASSETS LESS LIABILITIES: 0.7%........................ 9,922,742
--------------
NET ASSETS: 100.0%......................................... $1,391,955,612
==============
- ----------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- ------
* Non-income producing security.
+ Securities on loan.
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $118,560,118
with collateral backing valued at $120,801,619.
See Notes to Financial Statements.
MSF-17
<PAGE>
METROPOLITAN SERIES FUND, INC
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Value
Shares Issue (Note 1A)
- -------------------------------------------------------------------------------
COMMON STOCK: 99.3%
- -------------------------------------------------------------------------------
<S> <C> <C>
Aerospace: 2.0%
132,600 Allied-Signal, Inc. $ 5,163,112
250,524 Boeing Co. 12,260,018
35,700 +General Dynamics Corp. 3,085,819
44,313 Lockheed Martin Corp. 4,364,831
12,400 Northrop Grumman Corp. 1,426,000
1 Raytheon Co. Cl. A 36
90,100 +Raytheon Co. Cl. B 4,550,050
48,600 +Rockwell International Corp. 2,539,350
49,800 Textron, Inc. 3,112,500
56,800 United Technologies Corp. 4,135,750
------------
40,637,466
- -------------------------------------------------------------------------------
Automotive: 2.3%
54,700 *AutoZone, Inc. 1,586,300
157,300 Chrysler Corp. 5,534,994
32,500 Dana Corp. 1,543,750
18,000 +Eaton Corp. 1,606,500
34,900 Echlin, Inc. 1,262,944
312,300 Ford Motor Co. 15,205,106
177,932 General Motors Corp. 10,787,127
42,300 Genuine Parts Co. 1,435,556
91,710 *Navistar International Corp. 2,275,554
11,730 PACCAR, Inc. 616,558
41,950 Snap-On, Inc. 1,830,069
33,200 TRW, Inc. 1,772,050
------------
45,456,508
- -------------------------------------------------------------------------------
Banking: 9.1%
32,800 Ahmanson (H.F.) & Co. 2,195,550
171,495 Banc One Corp. 9,314,322
38,640 Bank of Boston Corp. 3,629,745
87,000 Bank of New York Co., Inc. 5,029,687
192,552 BankAmerica Corp. 14,056,296
32,900 Bankers Trust New York Corp. 3,699,194
54,300 Barnett Banks, Inc. 3,902,812
35,800 *BB&T Corp. 2,293,437
111,634 Chase Manhattan Corp. 12,223,923
116,314 +Citicorp 14,706,451
39,900 +Comerica, Inc. 3,600,975
55,500 CoreStates Financial Corp. 4,443,469
33,600 Fifth Third Bancorp 2,744,700
69,358 First Chicago NBD Corp. 5,791,393
164,170 First Union Corp. 8,413,712
61,415 +Fleet Financial Group, Inc. 4,602,287
22,000 Golden West Financial Corp. 2,151,875
100,700 +Green Tree Financial Corp. 2,637,081
52,000 +Huntington Bancshares, Inc. 1,868,750
56,103 KeyCorp 3,972,794
122,962 MBNA Corp. 3,358,400
54,000 Mellon Bank Corp. 3,273,750
40,799 +Morgan (J.P.) & Co., Inc. 4,605,187
48,300 National City Corp. 3,175,725
198,128 +NationsBank Corp. 12,048,659
208,200 +Norwest Corp. 8,041,725
72,700 PNC Bank Corp. 4,148,444
16,000 Republic New York Corp. 1,827,000
39,400 State Street Corp. 2,292,588
59,200 SunTrust Banks, Inc. 4,225,400
61,500 +Synovus Financial Corp. 2,014,125
65,509 +U.S. Bancorp 7,332,914
54,100 Wachovia Corp. 4,388,863
62,680 Washington Mutual, Inc. 3,997,809
24,263 Wells Fargo & Co. 8,235,772
------------
184,244,814
- --------------------------------------------------------------------------------
Broadcastinnng: 1.7%
160,600 *CBS Corp. 4,727,662
25,800 +*Clear Channel Communications, Inc. 2,049,487
92,300 Comcast Corp. Cl. A Spl. 2,910,334
52,900 +King World Productions, Inc. 3,054,975
150,000 +*Tele-Comm TCI Group Cl. A 4,185,938
137,720 +Time Warner, Inc. 8,538,640
197,500 *U.S. West, Inc.-Media Group 5,702,813
</TABLE>
MSF-18
<PAGE>
METROPOLITAN SERIES FUND, INC
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Value
Shares Issue (Note 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting: (Continued)
91,426 *Viacom, Inc. Cl. B $ 3,788,465
-----------
34,958,314
- --------------------------------------------------------------------------------
Building & Construction: 0.7%
7,500 +Armstrong World Industries, Inc. 560,625
36,000 Crane Co. 1,561,500
48,800 Dover Corp. 1,762,900
42,300 +Mallinckrodt, Inc. 1,607,400
41,000 +Masco Corp. 2,085,875
17,300 Owens-Corning Fiberglas Corp. 590,363
27,200 Sherwin-Williams Co. 754,800
49,100 +Stanley Works 2,316,906
56,000 Willamette Industries, Inc. 1,802,500
-----------
13,042,869
- -------------------------------------------------------------------------------
Business Services: 1.2%
75,700 Automatic Data Processing, Inc. 4,646,087
37,000 Block (H & R), Inc. 1,658,063
184,979 *Cendant Corp. 6,358,668
33,700 +Deluxe Corp. 1,162,650
19,200 Ecolab, Inc. 1,064,400
98,900 +First Data Corp. 2,892,825
50,500 HBO & Co. 2,422,422
38,700 +Interpublic Group of Cos., Inc. 1,927,744
17,600 Safety-Kleen Corp. 482,900
65,600 Service Corp. International 2,423,100
-----------
25,038,859
- -------------------------------------------------------------------------------
Chemicals: 2.7%
20,100 Air Products & Chemicals, Inc. 1,653,225
58,500 Dow Chemical Co. 5,937,750
286,300 Du Pont (E.I.) de Nemours & Co. 17,195,894
14,675 Eastman Chemical Co. 874,080
18,700 *FMC Corp. 1,258,744
43,800 Grace (W.R.) & Co. 3,523,162
29,300 Great Lakes Chemical Corp. 1,314,837
40,500 Hercules, Inc. 2,027,531
149,900 Monsanto Co. 6,295,800
28,800 Nalco Chemical Co. 1,139,400
122,900 Pall Corp. 2,542,494
43,600 PPG Industries, Inc. 2,490,650
24,500 Praxair, Inc. 1,102,500
22,000 Rohm & Haas Co. 2,106,500
37,000 Sigma Aldrich Corp. 1,466,125
44,100 Union Carbide Corp. 1,893,544
81,600 +Williams Cos., Inc. 2,315,400
-----------
55,137,636
- -------------------------------------------------------------------------------
Containers & Glass: 0.3%
56,400 +Bemis Co., Inc. 2,485,125
59,600 Crown Cork & Seal Co., Inc. 2,987,450
-----------
5,472,575
- -------------------------------------------------------------------------------
Cosmetics: 0.3%
49,200 +Alberto-Culver Co. Cl. B Cvt. 1,577,475
29,200 Avon Products, Inc. 1,792,150
41,600 International Flavors & Fragrances, Inc. 2,142,400
-----------
5,512,025
- -------------------------------------------------------------------------------
Drugs & Health Care: 7.8%
34,100 Allergan, Inc. 1,144,481
58,300 +*ALZA Corp. 1,854,669
166,500 American Home Products Corp. 12,737,250
55,000 Amgen, Inc. 2,976,875
39,800 Bard (C.R.), Inc. 1,246,237
42,600 Bausch & Lomb, Inc. 1,688,025
62,100 Biomet, Inc. 1,587,431
254,200 Bristol-Myers Squibb Co. 24,053,675
25,800 Cardinal Health, Inc. 1,938,225
99,300 *HEALTHSOUTH Corp. 2,755,575
294,200 Lilly (Eli) & Co. 20,483,675
317,900 +Merck & Co., Inc. 33,776,875
334,100 Pfizer, Inc. 24,911,331
130,715 Pharmacia & Upjohn, Inc. 4,787,437
188,600 Schering-Plough Corp. 11,716,775
</TABLE>
MSF-19
<PAGE>
METROPOLITAN SERIES FUND, INC.
Schedule of Investments
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ----------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ----------------------------------------------------------------
<S> <C> <C>
DRUGS & HEALTH CARE: (CONTINUED)
35,100 +*St. Jude Medical, Inc. $ 1,070,550
69,400 Warner-Lambert Co. 8,605,600
-----------
157,334,686
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT: 4.1%
43,600 AMP, Inc. 1,831,200
11,200 Black & Decker Corp. 437,500
10,200 +Briggs & Stratton Corp. 495,337
113,800 Emerson Electric Co. 6,422,587
865,900 General Electric Co. 63,535,412
23,600 General Signal Corp. 995,625
20,600 Grainger (W.W.), Inc. 2,002,062
24,400 Johnson Controls, Inc. 1,165,100
29,000 National Service Industries, Inc. 1,437,313
37,200 +Raychem Corp. 1,601,925
37,000 Tandy Corp. 1,426,813
25,100 Thomas & Betts Corp. 1,185,975
-----------
82,536,849
- ---------------------------------------------------------------
ELECTRONICS: 4.2%
35,500 *Advanced Micro Devices, Inc. 636,781
86,550 +Andrew Corp. 2,074,495
81,200 *Applied Materials, Inc. 2,443,612
65,500 *DSC Communications Corp. 1,567,906
28,600 Harris Corp. 1,312,025
22,500 +Honeywell, Inc. 1,541,250
425,800 Intel Corp. 29,899,144
23,600 +*KLA Instruments Corp. 910,813
115,900 *LSI Logic Corp. 2,289,025
161,197 Lucent Technologies, Inc. 12,875,610
40,700 *Micron Technology, Inc. 1,058,200
154,800 Motorola, Inc. 8,833,275
105,000 +*National Semiconductor Corp. 2,723,438
68,200 Northern Telecom Ltd. 6,069,800
22,900 Perkin-Elmer Corp. 1,627,331
71,900 Scientific-Atlanta, Inc. 1,204,325
42,300 +*Tellabs, Inc. 2,232,647
92,000 +Texas Instruments, Inc. 4,140,000
29,500 +*Thermo Electron Corp. 1,312,750
-----------
84,752,427
- ---------------------------------------------------------------
ENTERTAINMENT & LEISURE: 0.9%
43,600 Brunswick Corp. 1,321,625
175,599 Disney (Walt) Co. 17,395,276
-----------
18,716,901
- ---------------------------------------------------------------
FINANCIAL SERVICES: 4.2%
123,387 +American Express Co. 11,012,290
17,000 Beneficial Corp. 1,413,125
60,300 Charles Schwab Corp. 2,528,831
51,400 Countrywide Credit Industries, Inc. 2,203,775
166,600 Federal Home Loan Mortgage Corp. 6,986,787
279,700 +Federal National Mortgage Assoc. 15,960,381
23,200 Hartford Financial Services Group,
Inc. 2,170,650
24,900 Household International, Inc. 3,176,306
39,100 Loews Corp. 4,149,488
84,500 Merrill Lynch & Co., Inc. 6,163,219
32,800 +MGIC Investment Corp. 2,181,200
141,241 +Morgan Stanley, Dean Witter,
Discovery & Co. 8,350,874
20,400 Transamerica Corp. 2,172,600
301,484 Travelers Group, Inc. 16,242,451
-----------
84,711,977
- ---------------------------------------------------------------
FOOD & BEVERAGES: 5.7%
127,900 Anheuser-Busch Co., Inc. 5,627,600
140,753 Archer-Daniels-Midland Co. 3,052,581
36,400 Brown-Forman Corp. Cl. B 2,011,100
113,400 Campbell Soup Co. 6,591,375
656,000 Coca-Cola Co. 43,706,000
99,700 ConAgra, Inc. 3,271,406
11,800 Coors (Adolph) Co. Cl. B 391,613
36,500 CPC International, Inc. 3,932,875
41,400 *General Mills, Inc. 2,965,275
103,700 Heinz (H.J.) Co. 5,269,256
33,600 Hershey Foods Corp. 2,081,100
</TABLE>
MSF-20
<PAGE>
METROPOLITAN SERIES FUND, INC.
Schedule of Investments
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ----------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ----------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGES: (CONTINUED)
106,500 Kellogg Co. $ 5,285,063
381,000 PepsiCo, Inc. 13,882,688
19,200 +Pioneer Hi Bred International, Inc. 2,059,200
35,700 Quaker Oats Co. 1,883,175
122,900 Sara Lee Corp. 6,920,806
33,000 +Sysco Corp. 1,503,563
59,800 Whitman Corp. 1,558,538
29,500 Wrigley (Wm.), Jr. Co. 2,347,094
-----------
114,340,308
- ---------------------------------------------------------------
FOREST PRODUCTS & PAPER: 1.1%
37,000 Boise Cascade Corp. 1,119,250
44,500 Champion International Corp. 2,016,406
46,900 Fort James Corp. 1,793,925
14,700 +Georgia-Pacific Corp. 893,025
70,900 International Paper Co. 3,057,563
135,720 Kimberly-Clark Corp. 6,692,693
32,100 Louisiana-Pacific Corp. 609,900
49,000 +Mead Corp. 1,372,000
16,200 Temple Inland, Inc. 847,463
17,100 Union Camp Corp. 918,056
18,300 Westvaco Corp. 575,306
45,200 Weyerhaeuser Co. 2,217,625
-----------
22,113,212
- ---------------------------------------------------------------
HOSPITAL MANAGEMENT: 0.5%
148,385 Columbia/HCA Healthcare Corp. 4,395,906
48,600 *Humana, Inc. 1,008,450
57,100 Manor Care, Inc. 1,998,500
87,100 *Tenet Healthcare Corp. 2,885,188
14,900 United Healthcare Corp. 740,344
-----------
11,028,388
- ---------------------------------------------------------------
HOTEL & MOTEL: 0.3%
68,900 Hilton Hotels Corp. 2,095,938
27,100 Marriott International 1,876,675
64,700 *Mirage Resorts, Inc. 1,471,925
-----------
5,444,538
- ---------------------------------------------------------------
HOUSEHOLD APPLIANCES & HOME FURNISHINGS: 0.2%
49,800 +Maytag Corp. 1,858,163
58,400 Newell Co. 2,482,000
8,600 Whirlpool Corp. 473,000
-----------
4,813,163
- ---------------------------------------------------------------
HOUSEHOLD PRODUCTS: 3.2%
19,200 Clorox Co. 1,518,000
70,200 +Colgate-Palmolive Co. 5,159,700
45,600 Corning, Inc. 1,692,900
158,500 Gillette Co. 15,919,344
354,900 Procter & Gamble Co. 28,325,456
51,400 Rubbermaid, Inc. 1,285,000
30,200 Tupperware Corp. 841,825
157,600 +Unilever NV 9,840,150
-----------
64,582,375
- ---------------------------------------------------------------
INSURANCE: 4.0%
37,400 Aetna, Inc. 2,639,037
104,399 Allstate Corp. 9,487,259
78,770 +American General Corp. 4,258,503
182,425 American International Group, Inc. 19,838,719
42,450 Aon Corp. 2,488,631
45,600 Chubb Corp. 3,448,500
18,100 +CIGNA Corp. 3,132,431
14,600 +*Cincinnati Financial Corp. 2,053,125
33,400 +Conseco Co., Inc. 1,517,612
45,800 Equifax, Inc. 1,623,037
19,400 General Re Corp. 4,112,800
32,800 Jefferson-Pilot Corp. 2,554,300
40,000 +Lincoln National Corp. 3,125,000
35,600 Marsh & McLennan Cos., Inc. 2,654,425
26,000 MBIA, Inc. 1,737,125
17,200 Progressive Corp. 2,061,850
21,800 Providian Financial Corp. 985,088
37,900 SAFECO Corp. 1,845,256
21,700 St. Paul Cos., Inc. 1,780,756
46,650 SunAmerica, Inc. 1,994,288
</TABLE>
MSF-21
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENT
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
December 31, 1997
<TABLE>
<CAPTION>
Value
Shares Issue (Note 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
Insurance: (Continued)
49,000 Torchmark Corp. $ 2,061,063
42,200 UNUM Corp. 2,294,625
99,900 +USF&G Corp. 2,204,044
-----------
79,897,474
- ---------------------------------------------------------------
Liquor: 0.1%
83,200 Seagram Ltd. 2,688,400
- ---------------------------------------------------------------
Machinery: 1.1%
46,000 Browning-Ferris Industries, Inc. 1,702,000
40,200 +Case Corp. 2,429,587
85,000 Caterpillar, Inc. 4,127,812
34,500 Cooper Industries, Inc. 1,690,500
18,900 +Cummins Engine Co., Inc. 1,116,281
49,800 +Deere & Co. 2,903,962
14,000 +*Fluor Corp. 523,250
6,000 Foster Wheeler Corp. 162,375
59,300 Illinois Tool Works, Inc. 3,565,413
36,150 +Ingersoll-Rand Co. 1,464,075
40,200 Parker Hannifin Corp. 1,844,175
-----------
21,529,430
- ---------------------------------------------------------------
Medical Supply: 2.6%
192,600 +Abbott Laboratories, Inc. 12,627,337
62,700 +Baxter International, Inc. 3,162,431
29,600 Becton, Dickinson & Co. 1,480,000
42,400 +*Boston Scientific Corp. 1,945,100
37,800 Guidant Corp. 2,353,050
347,000 Johnson & Johnson 22,858,625
107,600 +Medtronic, Inc. 5,628,825
68,400 +United States Surgical Corp. 2,004,975
-----------
52,060,343
- ---------------------------------------------------------------
Metals-Aluminum: 0.2%
33,600 Alcan Aluminium Ltd. 928,200
37,500 Aluminum Co. of America 2,639,062
18,700 Reynolds Metals Co. 1,122,000
-----------
4,689,262
- ---------------------------------------------------------------
Metals-Gold: 0.2%
79,100 +Barrick Gold Corp. 1,473,237
42,100 +Echo Bay Mines Ltd. 102,619
67,300 +Homestake Mining Co. 597,287
35,994 Newmont Mining Corp. 1,057,324
111,000 +Placer Dome, Inc. 1,408,313
-----------
4,638,780
- ---------------------------------------------------------------
Metals-Non-Ferrous: 0.1%
12,600 +ASARCO, Inc. 282,712
76,650 Engelhard Corp. 1,331,794
30,106 Inco Ltd. 511,802
-----------
2,126,308
- ---------------------------------------------------------------
Metals-Steel & Iron: 0.2%
9,500 *Bethlehem Steel Corp. 81,938
10,400 Inland Steel Industries, Inc. 178,100
13,700 Nucor Corp. 661,881
46,394 +USX US Steel Group 1,449,823
46,600 Worthington Industries, Inc. 765,988
-----------
3,137,730
- ---------------------------------------------------------------
Mining: 0.1%
83,900 +Freeport-McMoRan Copper & Gold, Inc. 1,321,425
Cl. B
21,100 +Phelps-Dodge Corp. 1,313,475
-----------
2,634,900
- ---------------------------------------------------------------
Miscellaneous: 0.6%
43,700 +Allegheny Teldyne, Inc. 1,130,737
29,300 Cognizant Corp. 1,305,681
49,400 Fortune Brands, Inc. 1,830,887
25,100 Ralston-Purina Group 2,332,731
135,400 Tyco International Ltd. 6,101,463
-----------
12,701,499
- ---------------------------------------------------------------
Multi-Industry: 0.6%
25,400 +Harcourt General, Inc. 1,390,650
17,900 *ITT Corp. 1,483,463
31,000 ITT Industries, Inc. 972,625
108,600 Minnesota Mining & Manufacturing Co. 8,911,988
-----------
12,758,726
- ---------------------------------------------------------------
</TABLE>
MSF-22
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
Newspapers: 0.7%
50,300 Dow Jones & Co., Inc. $ 2,700,481
83,400 Gannett Co., Inc. 5,155,162
20,800 Knight-Ridder, Inc. 1,081,600
26,400 New York Times Co. Cl. A 1,745,700
18,900 +Times Mirror Co. Cl. A 1,162,350
21,400 Tribune Co. 1,332,150
------------
13,177,443
- ---------------------------------------------------------------
Office & Business Equipment: 5.4%
76,900 *3 Com Corp. 2,684,291
31,200 *Apple Computer, Inc. 408,525
39,800 +Avery Dennison Corp. 1,781,050
94,900 *Bay Networks, Inc. 2,425,881
93,900 *Cabletron Systems, Inc. 1,408,500
55,900 *Ceridian Corp. 2,560,919
252,000 *Cisco Systems, Inc. 14,064,750
210,330 Compaq Computer Corp. 11,870,499
38,400 +*Data General Corp. 669,600
79,600 +*Dell Computer Corp. 6,688,887
58,800 +*Digital Equipment Corp. 2,175,600
106,800 *EMC Corp. 2,930,325
274,200 Hewlett-Packard Co. 17,137,500
36,400 *IKON Office Solutions, Inc. 1,023,750
251,800 International Business Machines Corp. 26,328,838
38,200 Pitney Bowes, Inc. 3,435,613
50,200 *Seagate Technology 966,350
45,600 *Silicon Graphics, Inc. 567,150
79,900 *Sun Microsystems, Inc. 3,191,006
61,800 Unisys Corp. 857,475
76,200 Xerox Corp. 5,624,513
------------
108,801,022
- ---------------------------------------------------------------
Oil & Gas Exploration: 0.0%
37,350 Union Pacific Resources Group, Inc. 905,738
- ---------------------------------------------------------------
Oil-Domestic: 1.7%
41,500 +Amerada Hess Corp. 2,277,312
123,300 Amoco Corp. 10,495,912
31,100 +Ashland Oil, Inc. 1,669,681
75,900 Atlantic Richfield Co. 6,081,487
41,900 Kerr-McGee Corp. 2,652,794
83,300 +Occidental Petroleum Corp. 2,441,731
19,400 Pennzoil Co. 1,296,163
58,600 Phillips Petroleum Co. 2,849,425
26,100 Tenneco, Inc. 1,030,950
45,348 Unocal Corp. 1,760,069
62,200 USX-Marathon Group 2,099,250
------------
34,654,774
- ---------------------------------------------------------------
Oil-International: 5.3%
166,300 Chevron Corp. 12,805,100
643,500 Exxon Corp. 39,374,156
205,300 Mobil Corp. 14,820,094
588,900 +Royal Dutch Petroleum Co. 31,911,019
150,200 Texaco, Inc. 8,167,125
------------
107,077,494
- ---------------------------------------------------------------
Oil-Services: 1.2%
43,400 Baker Hughes, Inc. 1,893,325
39,400 +Coastal Corp. 2,440,337
63,200 +Dresser Industries, Inc. 2,650,450
54,000 Halliburton Co. 2,804,625
14,100 Helmerich & Payne, Inc. 957,037
21,300 McDermott International, Inc. 780,113
76,900 *Rowan Cos., Inc. 2,345,450
122,100 Schlumberger Ltd. 9,829,050
14,500 *Western Atlas, Inc. 1,073,000
------------
24,773,387
- ---------------------------------------------------------------
Photography: 0.3%
95,000 +Eastman Kodak Co. 5,777,187
21,200 +Polaroid Corp. 1,032,175
------------
6,809,362
- ---------------------------------------------------------------
Pollution Control: 0.2%
166,000 +Laidlaw, Inc. 2,261,750
</TABLE>
MSF-23
<PAGE>
METROPOLITAN SERIES FUND, INC
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
Pollution Control: (Continued)
89,600 Waste Management, Inc. $ 2,464,000
-----------
4,725,750
- ---------------------------------------------------------------
Printing & Publishing: 0.3%
68,600 American Greetings Corp. Cl. A 2,686,119
61,700 Dun & Bradstreet Corp. 1,908,844
16,000 McGraw-Hill Cos., Inc. 1,184,000
30,400 Meredith Corp. 1,084,900
-----------
6,863,863
- ---------------------------------------------------------------
Restaurant: 0.5%
174,900 McDonald's Corp. 8,351,475
38,100 *Tricon Global Restaurants, Inc. 1,107,281
-----------
9,458,756
- ---------------------------------------------------------------
Retail Grocery: 0.5%
53,900 Albertson's, Inc. 2,553,512
50,200 American Stores Co. 1,032,237
73,800 Giant Foods, Inc. Cl. A 2,486,137
58,800 *Kroger Co. 2,171,925
48,700 +Winn-Dixie Stores, Inc. 2,127,581
-----------
10,371,392
- ---------------------------------------------------------------
Retail Trade: 4.2%
123,400 *Charming Shoppes, Inc. 574,581
35,300 Circuit City Stores, Inc. 1,255,356
53,767 *Costco Cos., Inc. 2,397,672
31,400 CVS Corp. 2,011,562
55,800 Dayton-Hudson Corp. 3,766,500
65,100 Dillards, Inc. Cl. A 2,294,775
44,500 +*Federated Department Stores 1,916,281
190,899 Home Depot, Inc. 11,239,179
220,800 *K Mart Corp. 2,553,000
59,900 Limited, Inc. 1,527,450
200 Longs Drug Stores Corp. 6,425
30,100 Lowes Cos., Inc. 1,435,394
51,900 +May Department Stores Co. 2,734,481
40,800 Nordstrom, Inc. 2,458,200
64,100 Penney (J.C.) Co., Inc. 3,866,031
38,600 Pep Boys-Manny, Moe & Jack 921,575
32,500 Rite Aid Corp. 1,907,344
85,600 Sears, Roebuck & Co. 3,873,400
65,300 SuperValu, Inc. 2,734,438
103,050 The Gap, Inc. 3,651,834
50,000 TJX Cos., Inc. 1,718,750
63,100 *Toys 'R Us, Inc. 1,983,706
592,700 Wal-Mart Stores, Inc. 23,374,606
123,600 Walgreen Co. 3,877,950
65,300 *Woolworth Corp. 1,330,488
-----------
85,410,978
- ---------------------------------------------------------------
Software: 2.9%
39,100 Adobe Systems, Inc. 1,610,431
130,350 Computer Associates International, 6,892,256
Inc.
314,300 *Microsoft Corp. 40,613,453
97,500 *Novell, Inc. 728,203
254,850 *Oracle Systems Corp. 5,678,377
30,800 +*Parametric Technology, Inc. 1,457,225
32,600 Shared Medical Systems 2,151,600
-----------
59,131,545
- ---------------------------------------------------------------
Textiles & Apparel: 0.3%
59,600 *Fruit of the Loom, Inc. Cl. A 1,527,250
23,500 +Liz Claiborne, Inc. 982,594
69,900 Nike, Inc. Cl. B 2,743,575
19,800 +*Reebok International Ltd. 570,488
4,200 +Russell Corp. 111,563
1,500 Springs Industries, Inc. 78,000
1,400 VF Corp. 64,313
-----------
6,077,783
- ---------------------------------------------------------------
Tires & Rubber: 0.3%
44,200 Cooper Tire & Rubber Co. 1,077,375
65,200 Goodrich (B.F.) Co. 2,701,725
26,400 Goodyear Tire & Rubber Co. 1,679,700
-----------
5,458,800
- ---------------------------------------------------------------
</TABLE>
MSF-24
<PAGE>
METROPOLTIAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
December 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
Tobacco: 1.5%
630,200 Philip Morris Cos., Inc. $28,555,938
37,400 UST, Inc. 1,381,463
-----------
29,937,401
- ---------------------------------------------------------------
Toys & Amusements: 0.2%
41,850 Hasbro, Inc. 1,318,275
74,013 +Mattel, Inc. 2,756,984
-----------
4,075,259
- ----------------------------------------------------------------
Transportation-Airlines: 0.6%
22,500 *AMR Corp. 2,891,250
13,600 Delta Air Lines, Inc. 1,618,400
28,800 *Federal Express Corp. 1,758,600
104,850 Southwest Airlines Co. 2,581,931
36,700 +*USAirways Group, Inc. 2,293,750
-----------
11,143,931
- ----------------------------------------------------------------
Transportation-Railroad: 0.7%
36,101 Burlington Northern Santa Fe Corp. 3,355,137
77,200 CSX Corp. 4,168,800
87,600 Norfolk Southern Corp. 2,699,175
56,200 Union Pacific Corp. 3,508,988
-----------
13,732,100
- ----------------------------------------------------------------
Transportation-Trucking: 0.1%
35,800 Ryder Systems, Inc. 1,172,450
- ----------------------------------------------------------------
Utilities-Electric: 3.0%
48,000 American Electric Power Co., Inc. 2,478,000
28,700 +Baltimore Gas & Electric Co. 977,594
18,800 Carolina Power & Light Co. 797,825
36,000 Central & South West Corp. 974,250
66,792 CINergy Corp. 2,558,968
59,800 Consolidated Edison Co. of New York, 2,451,800
Inc.
69,000 +Dominion Resources, Inc. 2,936,812
48,000 DTE Energy Co. 1,665,000
108,534 Duke Energy Corp. 6,010,070
89,500 Edison International 2,433,281
30,400 +*FirstEnergy Corp. 881,600
46,300 FPL Group, Inc. 2,740,381
- ----------------------------------------------------------------
Utilities-Electric: (Continued)
55,100 +GPU, Inc. $ 2,321,087
75,745 Houston Industries, Inc. 2,021,445
96,000 *Niagara Mohawk Power Corp. 1,008,000
37,000 Northern States Power Co. 2,155,250
49,400 PacifiCorp 1,349,238
144,500 PG&E Corp. 4,398,219
29,800 +PP&L Resources, Inc. 713,338
100,600 Public Service Enterprise Group, Inc. 3,187,763
160,300 Southern Co. 4,147,763
53,445 Texas Utilities Co. 2,221,308
42,900 Unicom Corp. 1,319,175
21,500 +Union Electric Co. 929,875
229,800 *WorldCom, Inc. 6,958,631
------------
59,636,673
- ----------------------------------------------------------------
Utilities-Gas Distribution & Pipelines: 0.7%
41,740 +Burlington Resources, Inc. 1,870,474
17,000 Columbia Gas Systems, Inc. 1,335,562
21,100 Consolidated Natural Gas Co. 1,276,550
84,500 Enron Corp. 3,512,031
21,700 +NICOR, Inc. 915,469
35,729 ONEOK, Inc. 1,442,570
44,500 Pacific Enterprises 1,674,313
24,900 Peoples Energy Corp. 980,438
27,800 +Sonat, Inc. 1,271,850
------------
14,279,257
- ----------------------------------------------------------------
Utilities-Telephone: 6.4%
123,600 +*AirTouch Communications, Inc. 5,137,125
42,300 ALLTEL Corp. 1,736,944
161,300 +Ameritech Corp. 12,984,650
418,035 AT&T Corp. 25,604,644
204,162 +*Bell Atlantic Corp. 18,578,742
252,500 BellSouth Corp. 14,218,906
52,900 Frontier Corp. 1,272,906
248,700 GTE Corp. 12,994,575
</TABLE>
MSF-25
<PAGE>
METROPOLTIAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
METLIFE STOCK INDEX PORTFOLIO
December 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------
<S> <C> <C>
Utilities-Telephone: (Continued)
193,400 *MCI Communications Corp. $ 8,285,981
238,247 SBC Communications, Inc. - 17,451,593
111,400 +Sprint Corp. 6,530,825
118,700 U.S. West, Inc.-Communications Group 5,356,338
---------------
130,153,229
- ------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $1,326,100,989) .............. 2,006,567,129
---------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 0.5%
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
$8,750,000 Federal Home Loan
Bank 4.750% 1/02/98 $ 8,748,846
950,000 U.S. Treasury Bills 5.150% 1/22/98 947,146
---------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $9,695,992) .................. 9,695,992
---------------
- ------------------------------------------------------------------
TOTAL INVESTMENTS: 99.8%
(Cost: $1,335,796,981) .............. 2,016,263,121
OTHER ASSETS LESS LIABILITIES: 0.2%.. 4,216,915
---------------
NET ASSETS: 100.0%................... $ 2,020,480,036
===============
</TABLE>
- ----------------------------------------------------------------
LEGEND:
- -------
* Non-income producing security.
+ Securities on loan.
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ---------------------------
As of December 31, 1997, the market value of securities loaned was $145,914,149
with collateral backing valued at $149,054,407 (Note 7). Three securities on
loan were sold with a market value of $789,555 (collateral backing of $846,661),
which are reflected in the Statement of Assets and Liabilies included as
receivables for investment securities sold.
See Notes to Financial Statements.
MSF-26
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ----------------------------------------------------------------
COMMON STOCK: 93.0%
- ----------------------------------------------------------------
<S> <C> <C>
AUSTRALIA: 3.4%
301,200 *Amcor Ltd. $1,325,073
191,000 Australia Gas & Light Co., Ltd. 1,331,981
706,000 *Fosters Brewing Group Ltd. 1,343,595
238,200 GIO Australia Holdings Ltd. 609,033
261,400 *Mayne Nickless Ltd. 1,381,680
226,000 *QBE Insurance Group Ltd 1,017,370
120,000 *Rio Tinto Ltd. 1,400,193
1,322,500 Savage Resources C1. A 620,596
----------
Total Investments in Australia 9,029,521
- ----------------------------------------------------------------
AUSTRIA: 0.6%
6,969 EVN Energie-Versorgung AG 915,848
5,420 *OMV Handels AG 750,901
----------
Total Investments in Austria 1,666,749
- ----------------------------------------------------------------
BELGIUM: 1.4%
14,000 *Delhaize-Le Lion SA 710,372
7,518 GPE Bruxelles 1,087,595
5,395 *Petrofina SA 1,991,218
----------
Total Investments in Belgium 3,789,185
- ----------------------------------------------------------------
CANADA: 0.3%
282,330 .*Isleinvest Ltd. 37,537
615,000 .*Kemgas International Ltd. 688,569
----------
Total Investments in Canada 726,106
- ----------------------------------------------------------------
CHINA: 1.2%
595,000 .*Advanced Material Resources Ltd. 624,541
311,800 +*Beijing Enterprises Cl. A 800,725
1,472,000 *First Tractor Co. Cl. H 888,063
266,000 Shanghai Industrial Holdings 988,618
----------
Total Investments in China 3,301,947
- ----------------------------------------------------------------
DENMARK: 1.0%
22,400 *ISS International Service Systems SA
Cl. B 823,830
6,840 Novo-Nordisk AS Cl. B 978,298
12,350 *Unidanmark SA Cl. A 906,617
----------
Total Investments in Denmark 2,708,745
- ----------------------------------------------------------------
FRANCE: 9.8%
7,140 *Accor 1,327,517
13,026 Alcatel Alsthom 1,655,710
20,514 *Cap Gemini 1,682,090
24,376 Credit Commerce France 1,670,699
11,850 Dexia France 1,372,344
13,937 Eaux Cie Generale 1,945,182
19,044 Elf Aquitaine SA 2,214,971
9,650 *Havas SA 694,268
30,471 Lafarge SA 1,999,335
23,670 Michelin Cl. B 1,191,661
31,760 Pechiney International NV Cl. A 1,253,830
23,930 *Rhone-Poulenc SA Cl. A 1,071,949
10,501 Saint-Gobain 1,491,793
16,800 *Sanofi SA 1,870,233
25,509 Schneider SA 1,385,119
19,067 Total SA Cl. B 2,075,083
20,314 Valeo SA 1,377,781
----------
Total Investments in France 26,279,565
- ----------------------------------------------------------------
GERMANY: 6.4%
15,070 Allianz Holdings AG 3,903,733
51,495 *Commerzbank AG 2,026,652
15,495 Deutsche Bank AG 1,093,897
23,691 Deutsche Pfandbrief 1,403,853
78,722 Deutsche Telekom AG 1,481,275
59,205 Lufthansa AG 1,135,425
2,891 MAN AG 837,272
30,918 RWE AG 1,658,516
5,984 *SGL Carbon AG 771,721
6,016 Thyssen AG 1,287,507
2,668 *Viag AG 1,437,112
----------
Total Investments in Germany 17,036,963
- ----------------------------------------------------------------
HONG KONG: 2.2%
335,600 +*Cheung Kong Infrastructure Holdings Ltd. 948,463
429,000 +China Resources Enterprises Ltd. 957,762
240,000 +Citic Pacific Ltd. 953,930
147,000 Hutchison Whampoa Ltd. 921,951
</TABLE>
MSF-27
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ----------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ----------------------------------------------------------------
<S> <C> <C>
HONG KONG: (CONTINUED)
217,500 Johnson Electric Holdings Ltd. $ 625,919
178,000 New World Development Co., Ltd. 615,615
268,000 +Television Broadcasts Ltd. 764,331
-----------
Total Investments in Hong Kong 5,787,971
- ----------------------------------------------------------------
INDONESIA: 0.2%
3,296,000 *Indah Kiat Pulp & Paper Corp. 584,291
-----------
Total Investments in Indonesia 584,291
- ----------------------------------------------------------------
ITALY: 6.5%
75,000 *Aeroporti di Roma SPA 777,982
64,804 Assicuraziono Generali SPA 1,591,709
250,000 *Banca Commerciale Italiana SPA 869,135
2,350,000 *Banca di Roma SPA 2,371,255
774,128 Credito Italiano SPA 2,387,150
330,872 ENI SPA ADR 1,876,001
431,400 *Instituto Nazionale Delle 874,262
Assicurazioni SPA
300,138 *Mediaset SPA 1,474,392
1,647,717 Montedison SPA 1,480,058
183,858 *Rinascente SPA 1,371,920
332,474 *Telecom Italia SPA 2,123,774
-----------
Total Investments in Italy 17,197,638
- ----------------------------------------------------------------
JAPAN: 13.8%
178,000 *Alps Electric Co., Ltd. 1,676,802
458,000 *Amada Co., Ltd. 1,701,233
340,000 *Asahi Bank Ltd. 1,380,103
102,000 *Bank Of Tokyo 1,406,142
181,000 +Kangyo Bank Ltd. 1,067,397
577,000 *Gunze Ltd. 954,522
174,000 *Industrial Bank of Japan Ltd. 1,239,335
117,000 Ines Corp. 905,032
150,000 +Intec, Inc. 844,375
300,000 +*Izumiya Co., Ltd. 1,955,273
86,000 Kirin Brewery Co., Ltd. 625,718
788,000 *Mitsubishi Oil Co., Ltd. 1,164,770
896,000 *Mitsubishi Paper Mills Ltd. 1,255,786
31,500 *Nintendo Co., Ltd. 3,087,999
1,183,000 *Nippon Light Metal Co., Ltd. 1,721,452
722,000 *Nippon Sheet Glass Co., Ltd. 1,006,387
318 *Nippon Telephone & Telegraph 2,727,732
608,250 Nissan Fire & Marine Insurance 1,849,393
183,000 *Sankyo Seiki Manufacturing Co., Ltd. 1,146,465
252,000 *Seino Transportation Co., Ltd. 1,256,429
23,500 Shima Seiki Manufacturing Co. 880,103
56,000 Shimano, Inc. 1,029,333
135,000 *Shionogi & Co., Ltd. 618,289
129,000 *Sumitomo Bank Ltd. 1,472,084
84,000 *Tokyo Nissan Auto Sales Co., Ltd. 183,350
485,400 Tokyo Steel Manufacturing 1,639,438
72,000 *Tomy Co., Ltd. 887,800
609,000 *Toyo Ink Manufacturing Co. 1,072,758
-----------
Total Investments in Japan 36,755,500
- ----------------------------------------------------------------
MEXICO: 0.8%
64,700 +*Cemex SA de CV ADR 686,978
103,200 Grupo Carso SA de CV Cl. A 690,515
20,400 +*Grupo Televisa SA ADR 789,225
-----------
Total Investments in Mexico 2,166,718
- ----------------------------------------------------------------
NETHERLANDS: 4.4%
6,997 Akzo Nobel NV 1,206,397
31,700 *Benckiser Cl. B NV 1,311,681
37,657 ING Groep NV 1,586,027
45,000 *Koninklijke KNP BT NV 1,036,421
32,543 Koninklijke PTT 1,357,797
14,920 *Philips Electronics NV 894,766
64,187 Royal Dutch Petroleum Co. 3,523,297
13,900 *Vendex International NV 767,100
-----------
Total Investments in Netherlands 11,683,486
- ----------------------------------------------------------------
NORWAY: 1.4%
56,000 *Fred Olsen Energy ASA 1,160,064
27,365 *Nycomed Amersham 1,016,701
46,100 *Schibsted ASA 789,576
105,000 *Storebrand CL. A ASA 739,256
-----------
Total Investments in Norway 3,705,597
- ----------------------------------------------------------------
</TABLE>
MSF-28
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
PORTUGAL: 0.9%
40,880 *Banco Commercial Portugues SA $ 836,035
29,970 *Cimpor-Cimento de Portugal SA 785,522
46,850 *Electricidade de Portugal SA 887,108
----------
Total Investments in Portugal 2,508,665
- ---------------------------------------------------------------
SINGAPORE: 1.4%
167,000 City Development Ltd. 772,827
107,000 Development Bank of Singapore Ltd. 914,150
135,700 Singapore Airlines Ltd. 885,613
1,664,491 *Singapore Technologies Engineering 1,254,170
----------
Total Investments in Singapore 3,826,760
- ---------------------------------------------------------------
SOUTH KOREA: 1.5%
695,470 .*LG Electronics, Inc. GDR 144A 1,084,933
193,700 .Samsung Electronics Ltd. 144A 1,089,563
329,085 SK Telecom Ltd. ADR 1,727,696
----------
Total Investments in South Korea 3,902,192
- ---------------------------------------------------------------
SPAIN: 4.4%
27,000 *ACS Actividades SA 653,955
34,000 *Autopista Del Mare Nostrum 608,139
58,994 Banco Bilbao Vizcaya SA 1,909,028
16,232 Banco Popular Espagnol SA 1,134,695
138,800 *Corporacion Financiera Reunida SA 742,514
53,648 *Endesa SA 952,529
24,540 *Fomento de Construcciones y Contratas SA 934,243
27,449 Repsol SA 1,171,109
19,669 Tabacalera SA Cl. A 1,594,435
51,110 Telefonica de Espagna 1,459,327
60,300 *Uralita SA 688,690
-----------
Total Investments in Spain 11,848,664
- ---------------------------------------------------------------
SWEDEN: 2.5%
37,300 Autoliv AB SDR 1,214,379
20,220 *Electrolux AB Cl. B 1,403,194
31,810 *Pricer AB Cl. B 588,933
26,419 Skandia Foersaekrings AB 1,246,101
33,241 *Svenska Handelsbanken AB Cl. A 1,149,215
43,600 *Volvo AB Cl. B 1,169,637
-----------
Total Investments in Sweden 6,771,459
- ---------------------------------------------------------------
SWITZERLAND: 7.3%
10,260 Credit Suisse Group $1,586,887
884 Holderbank Financiere Glarus AG 721,139
2,400 Nestle SA 3,595,401
2,720 Novartis AG 4,411,716
500 Roche Holdings AG 4,963,386
4,927 *Swiss Bank Corp. AG 1,530,836
665 *Swiss Reinsurance AG 1,243,348
3,206 Zurich Versicherung AG 1,527,085
-----------
Total Investments in Switzerland 19,579,798
- ---------------------------------------------------------------
UKRAINE: 0.1%
1,100,000 [_]*Ashurst Technology Ltd. 230,923
-----------
Total Investments in Ukraine 230,923
- ---------------------------------------------------------------
UNITED KINGDOM: 21.5%
94,865 *Alliance & Leicester PLC 1,090,710
171,806 *Anglian Water PLC 2,342,188
128,996 *Bank of Scotland 1,171,674
56,151 *Barclays PLC 1,494,823
257,818 BAT Industries PLC 2,351,084
490,017 BG PLC 2,205,297
101,221 *Boots Co. PLC 1,457,229
83,792 *British Aerospace PLC 2,387,852
199,695 British Petroleum Co. PLC 2,641,671
264,026 British Telecom PLC 2,080,410
83,047 Commercial Union PLC 1,158,076
102,924 *Compass Group PLC 1,266,205
168,377 Energy Group PLC 1,858,478
53,081 *GKN PLC 1,087,204
147,131 Glaxo Wellcome PLC 3,507,685
184,253 Guinness PLC 1,685,680
252,107 *Hanson PLC 1,124,760
102,037 *HSBC Holdings PLC 2,648,013
106,421 *Kingfisher PLC 1,485,770
174,070 *Legal & General Group PLC 1,521,041
225,270 *Lloyds TSB Group PLC 2,930,669
53,247 *Logica PLC 1,017,139
205,518 Northern Foods PLC 891,167
</TABLE>
MSF-29
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM: (CONTINUED)
146,292 *Norwich Union PLC $ 877,039
74,804 *Provident Financial PLC 982,925
79,123 *Railtrack Group PLC 1,256,709
121,240 *Reuters Holdings PLC 1,324,259
256,042 *Scottish Hydro-Electric PLC 2,111,156
228,286 *SmithKline Beecham PLC 2,352,872
142,702 *Tesco PLC 1,176,722
212,729 Unilever PLC 1,829,846
215,538 *Vodafone Group PLC 1,557,693
69,731 *Zeneca Group PLC 2,469,965
-----------
TOTAL INVESTMENTS IN UNITED KINGDOM 57,344,011
-----------
TOTAL COMMON STOCK
(Cost: $253,072,695) ................. 248,432,454
-----------
- ---------------------------------------------------------------
PREFERRED STOCK: 1.5%
- ---------------------------------------------------------------
AUSTRIA: 0.7%
39,700 +*Bank of Austria AG 1,885,762
----------
Total Investments in Austria 1,885,762
- ---------------------------------------------------------------
GERMANY: 0.6%
11,200 *Henkel KGAA AG 706,634
2,470 *SAP AG 808,024
----------
Total Investments in Germany 1,514,658
- ---------------------------------------------------------------
UNITED KINGDOM: 0.2%
295,000 Upton & Southern Holdings PLC Cum.
Cvt. Pfd. 484,538
----------
Total Investments in United Kingdom 484,538
---------
TOTAL PREFERRED STOCK
(Cost: $3,476,575) ................... 3,884,958
----------
</TABLE>
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ---------------------------------------------------------------
SHORT TERM OBLIGATIONS: 4.1%
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
$11,000,00 Time Deposit 5.500% 1/05/98 $ 11,000,000
------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $11,000,000) ................. 11,000,000
------------
- ----------------------------------------------------------------
TOTAL INVESTMENTS: 98.6%
(Cost: $267,549,270) ................ 263,317,412
OTHER ASSETS LESS LIABILITIES: 1.4%.. 3,771,397
------------
NET ASSETS: 100.0%................... $267,088,809
============
- ----------------------------------------------------------------
</TABLE>
LEGEND:
- ---------
* Non-income producing security.
+ Securities on loan.
. Restricted security
[_] Illiquid security.
ADR (American depository receipt) represents ownership of foreign
securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $4,532,533
with collateral backing valued at $4,800,353.
RESTRICTED SECURITIES: (Note 2)
- -------------------------------
<TABLE>
<CAPTION>
Valuation as of
Acquisition Acquisition December 31,
Issue Date Cost 1997
----- ---- ---- ----
<S> <C> <C> <C>
Advanced Material
Resources Ltd............... 4/25/94-6/27/96 $ 1,353,869 $ 624,541
Isleinvest Ltd.............. 12/16/94-7/03/95 1,399,554 37,537
Kemgas International Ltd.... 10/18/94-10/02/95 1,405,405 688,569
LG Electronics, Inc. GDR
144A........................ 5/21/97 1,664,184 1,084,933
Samsung Electronics Ltd.
144A........................ 1/17/97 1,672,750 1,089,563
</TABLE>
The aggregate value of restricted securities at December 31, 1997 was $3,525,143
or 1.32% of the State Street Research International Stock Portfolio's net
assets.
See Notes to Financial Statements.
MSF-30
<PAGE>
METROPOLITAN SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
- --------------------------------------------------------------------------------
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
AS A PERCENTAGE OF TOTAL VALUE OF INVESTMENTS
<TABLE>
<S> <C>
Aerospace.................... 0.9%
Automotive................... 1.9
Banking...................... 16.0
Broadcasting................. 1.1
Building & Construction...... 0.6
Business Services............ 2.3
Chemicals.................... 1.8
Construction Materials....... 2.8
Consumer Products............ 0.7
Containers & Glass........... 0.4
Drugs & Health Care.......... 8.2
Electrical Equipment......... 0.8
Electronics.................. 2.9
Energy....................... 0.4
Entertainment & Leisure...... 1.2
Financial Services........... 4.5
Food & Beverages............. 4.2
Forest Products & Paper...... 1.6
General Business............. 0.2
Household Appliances & Home
Furnishings.................. 0.9
Household Products........... 0.5
Insurance.................... 7.5
Machinery.................... 2.0
Metals-Non-Ferrous........... 1.9
Metals-Steel & Iron.......... 1.1
Mining....................... 0.2
Miscellaneous................ 0.4
Multi-Industry............... 3.7
Newspapers................... 0.3
Oil & Gas Exploration........ 1.3
Oil-International............ 5.3
Personal Care................ 0.2
Printing & Publishing........ 0.5
Real Estate.................. 1.3
Retail Trade................. 3.6
Software..................... 0.3
Telecommunications Equipment
& Services................... 1.8
Textiles & Apparel........... 0.4
Tires & Rubber............... 0.5
Toys & Amusements............ 1.2
Transportation-Airlines...... 1.1
Transportation-Railroad...... 1.5
Utilities-Electric........... 1.8
Utilities-Gas Distribution &
Pipelines.................... 0.6
Utilities-Miscellaneous...... 3.2
Utilities-Telephone.......... 4.4
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements.
MSF-31
<PAGE>
METROPOLITAN SERIES FUNDS, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- -------------------------------------------------------------------------------------------
COMMON STOCK: 2.2%
- -------------------------------------------------------------------------------------------
<S> <C> <C>
BANKING: 0.1%
26,000 * Siam Commercial Bank PLC $ 29,699
- -------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 0.6%
967,500 * Indah Kiat Paper & Pulp Corp. 171,511
- -------------------------------------------------------------------------------------------
REAL ESTATE: 1.1%
9,000 Associated Estates Realty Corp. 213,187
7,200 Berkshire Realty Co., Inc. 86,400
-------------
299,587
- -------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 0.4%
4,000 Eastern Utilities Associates 105,000
- -------------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 0.0%
325 * Nextel Communications, Inc. Cl. A 8,409
-------------
TOTAL COMMON STOCK
(Cost: $747,917)........................................ 614,206
-------------
- -------------------------------------------------------------------------------------------
PREFERRED STOCK: 1.6%
- -------------------------------------------------------------------------------------------
METALS-STEEL & IRON: 1.0%
6,500 . Bethleham Steel Corp. Cvt. Pfd. Ser. B 144A 269,750
- -------------------------------------------------------------------------------------------
OIL-SERVICES: 0.1%
800 McDermott, Inc. Cvt. 2.20% Pfd. Ser. A 30,400
- -------------------------------------------------------------------------------------------
TRANSPORTATION-TRUCKING: 0.2%
1,600 Arkansas Best Corp. Cvt. Pfd. Ser. A 66,800
- -------------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 0.3%
505 Central Maine Power Co. 3.50% Pfd. 22,851
50 Niagara Mohawk Power Corp. 4.85% Pfd. 3,275
100 Niagara Mohawk Power Corp. Ser. B Adj. 2,544
200 Niagara Mohawk Power Corp. 3.60% Pfd. 9,300
200 Niagara Mohawk Power Corp. 3.90% Pfd. 10,200
200 Niagara Mohawk Power Corp. Ser. C Adj. 4,800
630 Niagara Mohawk Power Corp. 3.40% Pfd. 28,429
100 Toledo Edison Co. 4.25% Pfd. 5,937
-------------
87,336
-------------
TOTAL PREFERRED STOCK
(Cost: $399,309)........................................ 454,286
-------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------
CONVERTIBLE BONDS: 26.5%
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BROADCASTING: 0.4%
$150,000 Comcast Corp. Sub. Deb. 1.125% 4/15/98-07 96,750
- ---------------------------------------------------------------------------------------------
BUSINESS SERVICES: 0.6%
$200,000 . Physicians Resource
Group, Inc. 144A 6.000% 12/01/99-01 152,250
- ---------------------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICE: 3.7%
300,000 Apple Computer, Inc. Sub. 6.000% 6/01/99-01 241,500
155,000 Cray Research, Inc. Sub. 6.125% 2/01/96-11 119,350
300,000 S3, Inc. Sub. 5.750% 10/01/99-03 201,375
540,000 . Softkey International,
Inc. Sr. 144A 5.500% 11/01/98-00 476,550
---------------
1,038,775
- ---------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT: 0.1%
40,000 Richardson Electronics,
Ltd. Sub. Deb. 7.250% 12/15/96-06 32,800
- ---------------------------------------------------------------------------------------------
ELECTRONICS: 2.3%
600,000 . Cirrus Logic, Inc. Sub. 6.000% 12/15/99-03 462,750
144A
300,000 Zenith Electric Sub. Deb. 6.250% 4/01/96-11 175,500
---------------
638,250
- ---------------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE: 0.9%
100,000 Bell Sports Corp. Sub. Deb. 4.250% 11/15/96-00 84,750
200,000 CML Group, Inc. 5.500% 1/15/95-03 150,000
---------------
234,750
- ---------------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: 4.9%
20,000 Advanced Agro Public Co. 3.500% 6/17/01 16,000
650,000 Bangkok Bank Public 3.250% 3/03/04 211,250
125,000 Banpu Public Co. 2.750% 4/10/03 80,000
150,000 Burns, Philp Sub. 5.500% 4/30/97-04 88,500
500,000 Empresas ICA Sociedad
Sub. Deb. 5.000% 3/15/98-04 394,375
50,000 Loxley Public Co. 2.500% 4/04/01 25,000
250,000 Rogers Communications,
Inc. Deb. 2.000% 11/26/98-05 149,063
100,000 Samsung Co. 0.250% 6/26/06 80,000
250,000 Sappi BVI Finance 7.500% 8/01/98-02 233,750
250,000 Siam Commercial Bank 3.250% 1/24/04 72,500
---------------
1,350,438
- ---------------------------------------------------------------------------------------------
INDUSTRIALS: 2.3%
600,000 . Exide Corp. Sr. 144A 2.900% 12/15/98-05 383,250
</TABLE>
MSF-32
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATUTIRY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ---------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS: (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIALS: (CONTINUED)
$ 50,000 Glycomed, Inc. Sub. Deb. 7.500% 1/01/97-03 $ 46,000
365,000 UroMed Corp. Sub. 6.000% 10/15/99-03 204,400
-----------
633,650
- ---------------------------------------------------------------------------------------------------------------------
MEDICAL SUPPLY: 1.1%
400,000 NABI, Inc. Sub. 6.500% 2/01/99-03 298,500
- ---------------------------------------------------------------------------------------------------------------------
METALS-STEEL & IRON: 0.0%
200,000 Molten Metal Technology, Inc.
Sub. 0.000% 5/01/06 2,000
- ---------------------------------------------------------------------------------------------------------------------
MINING: 1.9%
200,000 Ashanti Gold Capital 5.500% 3/15/00-03 149,250
325,000 Battle Mountain Gold Co.
Sub. 6.000% 1/04/05 221,000
200,000 Coeur D'Alene Mines Corp.
Sub. 6.000% 6/10/02 152,000
-----------
522,250
- ---------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS: 1.6%
440,000 TPI Enterprises, Inc.
Sub. Deb. 8.250% 7/15/96-02 360,800
125,000 Veterinary Centers of
America, Inc. Sub. Deb. 5.250% 5/01/99-06 91,250
-----------
452,050
- ---------------------------------------------------------------------------------------------------------------------
OIL-INTERNATIONAL: 0.1%
100,000 Ssangyong Oil Refining Co.
Ltd. 3.000% 12/31/04 37,167
- ---------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL: 0.9%
327,000 Air & Water Technologies
Corp. Sub. Deb. 8.000% 5/15/97-15 255,469
- ---------------------------------------------------------------------------------------------------------------------
REAL ESTATE: 0.3%
100,000 Sizeler Property Inv., Inc.
Sub. Deb. 8.000% 7/15/97-03 96,000
- ---------------------------------------------------------------------------------------------------------------------
RESTAURANT: 2.5%
500,000 Boston Chicken, Inc. Sub.
Deb. 0.000% 6/01/00-15 73,125
50,000 Boston Chicken, Inc. Sub.
Deb. 7.750% 5/01/00-04 31,500
450,000 Boston Chicken, Inc. Sub.
Deb. 4.500% 2/01/98-04 220,500
325,000 Einstein/Noah Bagel Corp.
Sub. Deb. 7.250% 6/01/00-04 224,250
325,000 Shoney's, Inc. Sub. Deb. 0.000% 4/11/97-04 133,250
-----------
682,625
- ---------------------------------------------------------------------------------------------------------------------
RETAIL TRADE: 0.3%
$100,000 Jacobson Stores, Inc. Sub
Deb. 6.750% 12/15/96-11 $ 84,250
- ---------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL: 1.1%
200,000 Converse, Inc. Sub. 7.000% 6/01/00-04 114,500
250,000 Fieldcrest Cannon, Inc.
Sub. Deb. 6.000% 3/15/96-12 202,500
-----------
317,000
- ---------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-TRUCKING: 0.4%
160,000 Worldway Corp. Sub. Deb. 6.250% 4/15/96-11 116,800
- ---------------------------------------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 1.1%
500,000 Broadband Technologies,
Inc. Sub. 5.000% 5/15/99-01 310,000
-----------
TOTAL CONVERTIBLE BONDS
(Cost: $8,443,578)................................................................... 7,351,774
-----------
- ---------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS: 36.9%
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE: 0.6%
250,000 .Hyundai Motor Co. 144A 7.600% 7/15/07 177,500
- ---------------------------------------------------------------------------------------------------------------------
BROADCASTING: 5.2%
400,000 +Cablevision Systems Corp. 8.125% 8/15/09 412,000
100,000 CBS Inc. Sr. 7.125% 11/01/23 90,730
230,000 Century Communications
Corp. Sr. 0.000% 3/15/03 147,200
700,000 Century Communications
Corp. Sr. 8.375% 11/15/17 647,500
250,000 #.Fox Kids Worldwide, Inc.
Sr. 144A ---- 11/01/02-07 148,125
-----------
1,445,555
- ---------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.4%
100,000 DR Structured Finance
Corp. Ser. 1994-K1 A2 8.375% 8/15/15 98,000
- ---------------------------------------------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICE: 3.7%
390,000 Apple Computer, Inc. 6.500% 2/15/04 323,700
200,000 Digital Equipment Corp. 7.750% 4/01/23 201,156
450,000 Digital Equipment Corp.
Deb. 8.625% 11/01/12 492,898
-----------
1,017,754
- ---------------------------------------------------------------------------------------------------------------------
ELECTRONICS: 1.0%
275,000 Westinghouse Electric
Corp. 7.875% 9/01/23 275,525
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
MSF-33
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ----------------------------------------------------------------------------------------
CORPORATE BONDS: (CONTINUED)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL SERVICES: 2.9%
$ 250,000 .Pindo Deli Finance
Mauritius, Ltd. Sr. 144A 10.750% 10/01/07 $ 215,000
200,000 .Pindo Deli Finance
Mauritius, Ltd. Sr. Deb.
144A 10.875% 10/01/27 160,000
500,000 .Tjiwi Kimia Finance
Maurities, Ltd. Sr. 144A 10.000% 8/01/04 418,750
-----------
793,750
- ----------------------------------------------------------------------------------------
FOOD & BEVERAGES: 3.6%
100,000 Borden, Inc. Deb. 7.875% 2/15/23 100,618
600,000 #.Del Monte Foods, Inc. Sr.
144A ---- 12/15/02-07 343,500
45,000 Flagstar Corp. Sr. Deb. 0.000% 11/01/97-04 18,000
200,000 RJR Nabisco, Inc. 8.750% 8/15/05 215,786
300,000 RJR Nabisco, Inc. 8.500% 7/01/07 319,815
-----------
997,719
- ----------------------------------------------------------------------------------------
INDUSTRIALS: 1.9%
500,000 .Pan Pacific Industrial
Investment PLC 144A 0.000% 4/28/07 149,575
150,000 Pope & Talbot, Inc. 8.375% 6/01/13 158,661
350,000 #.TFM SA de CV Sr. Deb.
144A ---- 6/15/02-09 217,000
-----------
525,236
- ----------------------------------------------------------------------------------------
METALS-STEEL & IRON: 0.5%
29,000 Midland Ross Corp. Deb. 6.000% 2/15/07 23,754
135,000 Republic Engineered
Steels, Inc. 9.875% 12/15/98-01 128,250
-----------
152,004
- ----------------------------------------------------------------------------------------
POLLUTION CONTROL: 0.4%
125,000 Envirotest Systems Corp.
Sr. 9.625% 4/01/98-03 120,000
- ----------------------------------------------------------------------------------------
REAL ESTATE: 0.9%
250,000 .Murrin Murrin Holdings,
Ltd. Sr. 144A 9.375% 8/31/02-07 247,500
- ----------------------------------------------------------------------------------------
RETAIL GROCERY: 0.6%
200,000 Penn Traffic Co. Sr. 8.625% 12/15/98-03 169,500
- ----------------------------------------------------------------------------------------
RETAIL TRADE: 1.9%
100,000 Dillon Reed Ser. 1993-K1
A2 7.430% 8/15/18 90,250
200,000 K Mart Corp. 7.950% 2/01/23 193,250
250,000 K Mart Corp. 7.750% 10/01/12 243,125
-----------
526,625
- ----------------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT & SERVICES: 1.9%
855,000 #+Arch Communications
Group, Inc. Sr. ---- 3/15/01-08 525,825
- ----------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 2.8%
300,000 AES Corp. Sr. 8.375% 8/15/02-07 299,250
500,000 .AES Corp. Sr. 144A 8.875% 11/01/27 478,750
-----------
778,000
- ----------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 8.6%
500,000 #Hyperion
Telecommunications, Inc.
Sr. ---- 4/15/01-03 366,250
300,000 #Intercel, Inc. Sr. ---- 2/01/01-06 225,000
400,000 #Intercel, Inc. Sr. ---- 5/01/01-06 292,000
160,000 Lenfest Communications,
Inc. Sr. 8.375% 11/01/05 164,400
210,000 #Nextel Communications,
Inc. Sr. ---- 8/15/99-04 186,900
185,000 #.Nextel Communications,
Inc. Sr. 144A ---- 9/15/02-07 117,013
400,000 #.Nextel Communications,
Inc. Sr. 144A ---- 10/31/02-07 245,500
650,000 #.RCN Corp. 144A 0.000% 10/15/02-07 407,875
500,000 #Telewest PLC Sr. Deb. ---- 10/01/07 388,750
-----------
2,393,688
-----------
TOTAL CORPORATE BONDS
(Cost: $9,793,563)........ 10,244,181
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: 14.9%
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
200,000 .Bangkok Bank Public, Ltd.
Sub. 144A 8.250% 3/15/16 153,886
75,000 CAD#Clearnet Communications,
Inc. Sr. ---- 12/15/00-05 58,875
800,000 CAD#Clearnet Communications,
Inc. Sr. ---- 8/13/02-07 356,880
550,000 .Espirito Santo Centrais
Electriciadad Sr. 144A 10.000% 7/15/07 489,500
200,000 Export-Import Bank Korea 6.375% 2/15/06 149,750
800,000 #International Semi-Tech.
Microelectronics. ---- 8/15/03 288,000
250,000 Korea Electric Power Corp. 6.375% 12/01/03 191,538
</TABLE>
MSF-34
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
DECEMBER 31,1997
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ----------------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: (CONTINUED)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 150,000 Korea Electric Power Corp
Deb. 6.750% 8/01/27 $ 118,500
1,400,000 CAD#Microcell
.Telecommunications, Inc.
Sr. 144A ---- 10/15/02-07 543,718
500,000 Philippine Long Distance
Telephone Co. 8.350% 3/06/17 413,750
200,000 .Pycsa Panama SA 144A 10.280% 12/15/12 189,660
350,000 Quezon Power, Ltd. 8.860% 6/15/17 296,310
100,000 CADRogers Cablesystems, Ltd. 9.650% 1/15/04-14 75,575
Sr.
150,000 CADRogers Communications,
Inc. Sr. 10.500% 2/14/06 115,850
450,000 CADRogers Communications,
Inc. Sr. 8.750% 7/15/02-07 308,187
425,000 . Samsung Electronics Co.,
Ltd. 144A 0.000% 12/31/02-07 296,085
200,000 .[_]Total Access Commerce
Public, Ltd. 144A 7.625% 11/04/01 104,000
-----------
TOTAL FOREIGN OBLIGATIONS
(Cost: $4,545,846)........................................... 4,150,064
-----------
- ----------------------------------------------------------------------------------------------
YANKEE BONDS:11.3%
- ----------------------------------------------------------------------------------------------
120,000 Petroleos Mexicanos 9.500% 9/15/27 117,900
700,000 Petroleos Mexicanos 8.625% 12/01/23 658,000
300,000 [_]Philipinas Bangko Sentral 8.600% 6/15/27 239,220
313,572 Republic of Brazil 8.000% 4/15/14 246,154
550,000 +Republic of Brazil 10.125% 5/15/27 515,625
325,000 Republic of Argentina 9.750% 9/19/27 310,700
500,000 Republic of South Africa 8.500% 6/23/17 484,935
650,000 Republic of Venezuela 9.250% 9/15/27 579,475
-----------
TOTAL YANKEE BONDS
(Cost: $3,113,942)........................................... 3,152,009
-----------
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 6.4%
- ----------------------------------------------------------------------------------------------
$1,782,000 State Street Bank
Repurchase Agreement
(U.S. Treasury Bills
collateralized, dated
12/31/97 due 1/2/98 @
5.875% with a market
value of $1,838,993) 5.000% 01/02/98 1,782,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost: $1,782,000)........................................... 1,782,000
-----------
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.8%
(Cost: $28,826,155).......................................... 27,748,520
OTHER ASSETS LESS LIABILITIES: 0.2%.......................... 55,146
-----------
NET ASSETS: 100.0%........................................... $27,803,666
===========
- ----------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- ------
* Non-income producing security.
+ Securities on loan.
. Restricted security.
# Step bond: A zero coupon bond that converts to a fixed or variable interest
rate at a designated future date.
[_] Illiquid Security
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $736,449 with
collateral backing valued at $764,110.
RESTRICTED SECURITIES (Note 2):
- -------------------------------
<TABLE>
<CAPTION>
Valuation
as of
Acquisition Acquisition December 31,
Issue Date Cost 1997
----- ---- ---- ----
<S> <C> <C> <C>
AES Corp. Sr. 144A 10/24/97 $ 485,200 $ 478,750
Bangkok Bank Public, Ltd.
Sub. 144A 8/28/97 188,290 153,886
Bethleham Steel Corp. Cvt. 3/3/97-5/6/97 255,625 269,750
Pfd. Ser. B 144A
Cirrus Logic, Inc. Sub. 4/23/97-6/13/97 444,125 462,750
144A
Espirito Santo Centrais Sr.
144A 9/9/97-10/9/97 543,600 489,500
Exide Corp. Sr. 144A 3/3/97-11/5/97 381,188 383,250
Fox Kids Worldwide, Inc. Sr.
144A 11/24/97 143,438 148,125
Del Monte Foods, Inc. Sr.
144A 12/9/97 339,152 343,500
Hyundai Motor Corp. 144A 12/23/97 172,500 177,500
Microcell
Telecommunications, Inc. Sr.
144A 10/8/97-10/17/97 597,550 543,718
Murrin Murrin Holdings, Ltd.
144A 8/22/97 250,000 247,500
</TABLE>
MSF-35
<PAGE>
METROPOLITAN SERIES FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD BOND PORTFOLIO
DECEMBER 31, 1997
RESTRICTED SECURITIES-(CONT.)
- -----------------------------
<TABLE>
<CAPTION>
VALUATION
AS OF
ACQUISITION ACQUISITION DECEMBER 31
ISSUE DATE COST 1997
- ----- ----------- ------------ -----------
<S> <C> <C> <C>
Nextel Communications, Inc.
Sr. 144A 9/24/97 114,469 117,013
Nextel Communications, Inc.
Sr. 144A 10/15/97 247,984 245,500
Pan Pacific Industrial
Investments PLC 144A 5/23/97 214,930 149,575
Physicians Resource Group,
Inc. 144A 6/20/97-7/18/97 164,375 152,250
Pindo Deli Finance
Mauritius, Ltd. Sr. 144A 10/6/97 248,125 215,000
Pindo Deli Finance
Mauritius, Ltd. Sr. Deb. 144A 9/25/97 185,000 160,000
Pycsa Panama SA 144A 10/1/97 200,000 189,660
RCN Corp. 144A 10/10/97-10/23/97 384,696 407,875
Samsung Electronics Co.,
Ltd. 144A 12/2/97-12/19/97 323,188 296,085
TFM SA de CV Sr. Deb. 144A 6/11/97-7/23/97 201,736 217,000
Tjiwi Kimia Finance
Maurities, Ltd. Sr. 144A 7/29/97 298,365 418,750
Total Access Commerce
Public, Ltd. 144A 12/2/97 156,000 104,000
</TABLE>
The aggregate value of restricted securities at December 31, 1997 was $6,370,937
or 22.91% of the Loomis Sayles High Yield Bond Portfolio's net assets. See
Notes to Financial Statements.
MSF-36
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
JANUS MID CAP PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------------------------
COMMON STOCK: 95.6%
- ------------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE: 0.8%
30,025 + OEA, Inc. $ 868,848
- ------------------------------------------------------------------------------------
BANKING: 2.4%
2,225 First Empire State Corp. 1,034,625
7,725 Northern Trust Corp. 540,267
12,500 Regions Financial Corp. 527,734
7,175 + Star Banc Corp. 411,666
----------
2,514,292
- ------------------------------------------------------------------------------------
BROADCASTING: 9.2%
28,800 + Chancellor Media Corp. 2,150,100
49,025 +* Clear Channel Communications, Inc. 3,894,423
49,775 Heftel Broadcasting Corp. Cl. A 2,336,314
17,350 Univision Communications, Inc. Cl. A 1,211,247
----------
9,592,084
- ------------------------------------------------------------------------------------
BUSINESS SERVICES: 8.0%
39,412 Outdoor Systems, Inc. 1,512,435
110,850 Paychex, Inc. 5,632,566
26,300 Profit Recovery Group International, Inc. 471,756
16,075 Robert Half International, Inc. 643,000
----------
8,259,757
- ------------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICE: 1.3%
15,200 * America Online, Inc. 1,355,650
- ------------------------------------------------------------------------------------
CONSTRUCTION & MINING EQUIPMENT: 0.5%
20,875 Rental Service Corp. 512,742
- ------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS: 5.6%
92,175 Barnett, Inc. 2,050,894
96,825 + Fastenal Co. 3,721,711
----------
5,772,605
- ------------------------------------------------------------------------------------
DRUGS & HEALTH CARE: 9.1%
198,725 + Omnicare, Inc. 6,160,475
31,725 Pediatrix Medical Group, Inc. 1,356,244
30,175 Sofamor Danek Group, Inc. 1,963,261
----------
9,479,980
- ------------------------------------------------------------------------------------
EDUCATION: 4.3%
82,675 Apollo Group, Inc. Cl. A 3,916,728
5,525 + Computer Learning Centers, Inc. 338,752
4,925 DeVRY, Inc. 156,984
----------
4,412,464
- ------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT: 3.9%
89,875 Berg Electronics Corp. $2,044,656
79,225 + Littelfuse, Inc. 1,948,440
----------
3,993,096
- ------------------------------------------------------------------------------------
ELECTRONICS: 4.8%
54,150 + Maxim Integrated Products, Inc. 1,871,559
16,350 + Sanmina Holdings, Inc. 1,112,822
50,125 SIPEX Corp. 1,519,414
13,450 Vitesse Semiconductor Corp. 511,941
----------
5,015,736
- ------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE: 2.4%
15,050 + Family Golf Centers, Inc. 474,075
37,975 + Royal Caribbean Cruises Ltd. 2,024,542
----------
2,498,617
- ------------------------------------------------------------------------------------
FINANCIAL SERVICES: 8.9%
51,850 American Capital Strategies Ltd. 930,059
149,200 Amvescap PLC 1,276,204
61,412 Charles Schwab Corp. 2,575,466
15,800 Federal Agricultural Mortgage Corp. Cl. C 948,000
17,525 Healthcare Financial Partners, Inc. 617,756
94,475 Insignia Financial Group, Inc. Cl. A 2,172,925
34,325 Medallion Financial Corp. 746,569
----------
9,266,979
- ------------------------------------------------------------------------------------
FOOD & BEVERAGES: 1.8%
12,025 International Home Foods, Inc. 336,700
40,225 JP Foodservice, Inc. 1,485,811
----------
1,822,511
- ------------------------------------------------------------------------------------
HEALTHCARE SERVICES: 1.8%
108,950 AmeriPath, Inc. 1,858,959
- ------------------------------------------------------------------------------------
INSURANCE: 2.6%
14,350 Progressive Corp. 1,720,206
8,075 Protective Life Corp. 482,481
13,200 UICI 462,825
----------
2,665,512
- ------------------------------------------------------------------------------------
MULTI-INDUSTRY: 1.3%
216,530 Capita Group PLC 1,319,463
- ------------------------------------------------------------------------------------
</TABLE>
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
JANUS MID CAP PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------------------------
<S> <C> <C>
OFFICE & BUSINESS EQUIPMENT: 1.7%
38,700 Ceridian Corp. $ 1,772,944
- ------------------------------------------------------------------------------------
PLASTICS: 1.3%
21,975 +Sealed Air Corp. 1,356,956
- ------------------------------------------------------------------------------------
REAL ESTATE: 2.5%
34,175 Capital Trust Cl. A 384,469
42,300 +Security Capital Group, Inc. Cl. B 1,374,750
17,375 +Vornado Realty Trust 815,539
-----------
2,574,758
- ------------------------------------------------------------------------------------
RESTAURANT: 8.7%
51,650 Papa John's International, Inc. 1,804,522
271,400 Pizza Express PLC 3,325,478
704,000 Wetherspoon (J.D.) PLC 3,873,672
-----------
9,003,672
- ------------------------------------------------------------------------------------
RETAIL GROCERY: 0.3%
4,825 Quality Food Centers, Inc. 323,275
- ------------------------------------------------------------------------------------
RETAIL TRADE: 3.5%
20,275 CompUSA, Inc. 628,525
10,725 +Fred Meyer, Inc. 390,122
22,500 MSC Industrial Direct, Inc. Cl. A 953,437
70,175 Petco Animal Supplies, Inc. 1,701,744
-----------
3,673,828
- ------------------------------------------------------------------------------------
SOFTWARE: 2.9%
123,300 Cadence Design Systems, Inc. 3,020,850
- ------------------------------------------------------------------------------------
TRANSPORTATION-AIRLINES: 1.3%
55,250 Ryanair Holdings PLC ADR 1,388,156
- ------------------------------------------------------------------------------------
UTILITIES-ELECTRIC: 2.6%
58,550 +AES Corp. 2,729,894
- ------------------------------------------------------------------------------------
UTILITIES-MISCELLANEOUS: 0.5%
27,050 *Hanover Compressor Co. 552,834
- ------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 1.6%
156,925 PriCellular Corp. Cl. A 1,637,908
- ------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $88,360,653)............................ 99,244,370
--------------
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- ------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 9.5%
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5,000,000 Federal Home Loan
Mortgage Assn. 4.750% 1/02/98 $4,999,167
4,900,000 General Electric
Capital Corp. 6.080% 1/05/98 4,899,088
------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $9,898,255)....................................... 9,898,255
------------
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 105.1%
(Cost: $98,258,908)...................................... 109,142,625
OTHER ASSETS LESS LIABILITIES: (5.1)%.................... (5,290,984)
------------
NET ASSETS: 100.0%....................................... $103,851,641
============
- ------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
*NON-INCOME PRODUCING SECURITY.
+SECURITIES ON LOAN.
SECURITIES LENDING: (Note 7)
- ----------------------------
AS OF DECEMBER 31, 1997, THE MARKET VALUE OF SECURITIES LOANED WAS $12,202,921
WITH COLLATERAL BACKING VALUED AT $12,396,894.
See Notes to Financial Statements.
MSF-38
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: 97.8%
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE: 2.1%
10,700 AAR Corp. $ 414,625
7,900 *BE Aerospace 211,572
11,300 *Ducommun, Inc. 394,794
15,500 *Orbital Sciences Corp. 462,094
7,400 Precision Castparts Corp. 446,313
----------
1,929,398
- --------------------------------------------------------------------------------
AUTOMOTIVE: 1.6%
13,100 +*Gentex Corp. 352,881
28,800 *Miller Industries, Inc. 309,600
16,000 *O' Reilly Automotive, Inc. 423,000
10,700 +*Tower Automotive, Inc. 450,069
----------
1,535,550
- --------------------------------------------------------------------------------
BANKING: 4.0%
7,700 Astoria Financial Corp. 431,200
9,100 +Bay View Capital Corp. 331,581
12,300 City National Corp. 454,331
7,200 *Coast Savings Financial, Inc. 493,650
5,500 Commerce Bancorp, Inc. 280,500
8,300 Community First Bankshares 445,087
8,400 +*Imperial Bancorp 414,225
14,600 +North Fork Bancorp, Inc. 490,013
8,100 *Silicon Valley Bancshares 452,588
----------
3,793,175
- --------------------------------------------------------------------------------
BIOTECHNOLOGY: 0.8%
1,400 *Biogen, Inc. 51,012
7,300 *Dura Pharmaceuticals, Inc. 336,712
13,700 *Serologicals Corp. 350,206
----------
737,930
- --------------------------------------------------------------------------------
BROADCASTING: 2.3%
18,700 *American Business Information, Inc. Cl. A 189,337
6,200 *American Radio Systems Corp. Cl. A 330,537
5,400 *BET Holdings, Inc. Cl. A 294,975
4,200 +*Chancellor Media Corp. 313,556
1,500 +*Clear Channel Communications, Inc. 119,156
6,000 +*Jacor Communications, Inc. 319,125
3,200 *SFX Broadcasting, Inc. Cl. A $ 257,500
7,600 TCA Cable TV, Inc. 351,975
----------
2,176,161
- --------------------------------------------------------------------------------
BUILDING & CONSTRUCTION: 1.4%
22,100 *American Homestar Corp. 364,650
8,500 Apogee Enterprises, Inc. 101,734
10,400 Blount International, Inc. Cl. A 277,550
5,800 *Fairfield Communities, Inc. 255,925
9,600 *NCI Building Systems, Inc. 339,600
----------
1,339,459
- --------------------------------------------------------------------------------
BUSINESS SERVICES: 9.7%
10,300 +*AccuStaff, Inc. 236,900
14,400 *Affiliated Computer Services, Inc. Cl. A 378,900
18,500 *American Business Information, Inc. 189,625
8,900 Amresco, Inc. 266,444
9,900 +*Bisys Group, Inc. 330,412
8,700 *Caribiner International 387,150
3,000 *Cognos, Inc. 69,187
10,700 +*Concord EFS, Inc. 266,831
4,900 *Consolidated Graphics, Inc. 228,462
16,100 *COREstaff, Inc. 428,662
9,500 *Cort Business Services Corp. 378,219
7,100 Danka Business Systems ADR 113,378
12,500 *Data Processing Resources Corp. 321,094
10,300 +*Eltron International, Inc. 315,437
4,600 Fair Issac & Co., Inc. 153,237
7,100 G&K Services, Inc. Cl. A 298,200
10,300 HA-LO Industries, Inc. 267,800
8,880 HBO & Co. 425,962
8,400 Merrill Corp. 193,200
16,100 *Meta Group 359,231
9,300 Norrell Corp. 184,838
13,150 *Outdoor Systems, Inc. 504,631
1,850 Paychex, Inc. 94,003
17,500 *Payment Services, Inc. 244,453
</TABLE>
MSF-39
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- --------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------
BUSINESS SERVICES: (CONTINUED)
<S> <C> <C>
12,800 *Paymentech, Inc. $ 188,800
9,500 *QuickResponse Services, Inc. 349,125
7,360 +*Registry, Inc. 340,400
17,400 +*Rent Way, Inc. 322,988
12,100 *Romac International, Inc. 295,694
8,800 *Service Experts, Inc. 251,900
13,600 *Superior Services, Inc. 396,950
16,125 *Tetra Tech, Inc. 326,531
----------
9,108,644
- --------------------------------------------------------------------------------
CHEMICALS: 0.5%
10,400 *Sybron International Corp. 488,150
- --------------------------------------------------------------------------------
COMPUTER EQUIPMENT & SERVICE: 5.2%
25,000 *Actel Corp. 317,187
7,400 Analysts International Corp. 257,150
5,200 *CBT Group Ltd. PLC ADR 427,375
9,100 *CIBER, Inc. 527,800
4,000 +*Citrix Systems, Inc. 304,125
17,200 *Computer Management Sciences, Inc. 327,875
583 *DecisionOne Holdings Corp. 13,810
9,100 *DST Systems, Inc. 388,456
2,200 +*Gateway 2000, Inc. 71,775
16,600 *Integrated Systems Consulting Group 179,487
7,100 *Legato Systems, Inc. 311,513
3,200 +*PeopleSoft, Inc. 124,400
10,000 *SanDisk Corp. 200,938
1,600 +*Solectron Corp. 66,500
10,700 *SPSS, Inc. 203,300
6,000 +*SunGard Data Systems, Inc. 186,000
9,800 +*Sykes Enterprises, Inc. 192,938
7,000 +*Systems & Computer Technology 348,688
1,100 *Trident Microsystems, Inc. 10,003
17,700 *Vanstar Corp. 200,231
7,900 *Zebra Technologies Corp. Cl. A 237,000
----------
4,896,551
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS: 1.0%
15,900 *Barnett, Inc. 353,775
6,800 +Fastenal Co. 261,375
14,900 Valmont Industries, Inc. 296,138
----------
911,288
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS: 0.4%
10,950 +*Blyth Industries, Inc. 327,816
- --------------------------------------------------------------------------------
COSMETICS: 0.3%
8,400 +Alberto-Culver Co. Cl. B Cvt. 269,325
- --------------------------------------------------------------------------------
DRUGS & HEALTH CARE: 7.8%
14,200 *ABR Information Services, Inc. 343,462
5,700 *Amerisource Health Corp. Cl. A 332,025
1,400 *Centocor Corp. 46,725
2,000 DENTSPLY International, Inc. 61,812
8,800 +*Genesis Health Ventures, Inc. 232,100
2,850 *Health Management Associates, Inc. Cl. A 71,962
6,000 *HealthCare Compare Corp. 308,250
12,800 Healthdyne Technologies, Inc. 261,200
700 *IDEXX Laboratories, Inc. 11,222
10,870 +Integrated Health Services, Inc. 339,008
7,800 +Jones Medical Industries, Inc. 299,325
6,500 +*Lincare Holdings, Inc. 372,125
11,100 *Magainin Pharmaceuticals, Inc. 89,841
7,900 +*Medicis Pharmaceutical Corp. Cl. A 404,381
8,800 Mentor Corp. 323,400
14,650 *National Surgery Centers, Inc. 383,647
9,800 *NBTY, Inc. 327,688
12,800 Omnicare, Inc. 396,800
600 *Oxford Health Plans, Inc. 9,319
12,200 *PAREXEL International Corp. 454,450
4,900 *Patterson Dental Co. 222,950
8,400 *Pediatrix Medical Group, Inc. 359,100
13,600 *Phycor, Inc. 367,625
9,800 +*Respironics, Inc. 220,806
3,900 *Sofamor Danek Group, Inc. 253,744
6,100 *Sonus Pharmaceuticals, Inc. 201,681
</TABLE>
MSF-40
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ----------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ----------------------------------------------------------------
<S> <C> <C>
DRUGS & HEALTH CARE: (CONTINUED)
2,400 *Thermedics, Inc. $ 39,300
5,900 +*Universal Health Services, Inc. Cl. B 297,213
9,100 *Watson Pharmaceuticals, Inc. 295,181
----------
7,326,342
- ----------------------------------------------------------------
EDUCATION: 1.0%
8,200 *Apollo Group, Inc. Cl. A 388,475
5,900 +*Computer Learning Centers, Inc. 361,744
6,000 *Sylvan Learning Systems, Inc. 235,500
----------
985,719
- ----------------------------------------------------------------
ELECTRICAL EQUIPMENT: 2.3%
3,300 *American Power Conversion Corp. 78,169
12,700 *Anadigics, Inc. 387,350
15,800 *Berg Electronics Corp. 359,450
900 +*C-Cube Microsystems, Inc. 14,653
1,000 *Carbide/Graphite Group, Inc. 33,875
3,400 *Coherent, Inc. 119,212
10,800 +*Imnet Systems, Inc. 174,150
7,500 *Kent Electronics Corp. 188,438
9,500 *Littelfuse, Inc. 233,641
9,300 Technitrol, Inc. 279,000
11,400 Watsco, Inc. 281,438
----------
2,149,376
- ----------------------------------------------------------------
ELECTRONICS: 7.1%
1,400 +*Adaptec, Inc. 52,062
8,500 *Affymetrix, Inc. 265,625
1,200 +*Altera Corp. 39,787
12,300 *Aspen Technology, Inc. 418,969
5,500 *Burr-Brown Corp. 177,031
6,300 +*Computer Products, Inc. 143,128
7,000 +Dallas Semiconductor Corp. 285,250
7,400 +*Dionex Corp. 369,075
3,900 *Electro Scientific Industries,Inc. 149,419
6,600 *Eletronics for Imaging, Inc. 109,519
13,800 +*Encad, Inc. 382,950
7,300 *Etec Systems, Inc. 338,994
- ----------------------------------------------------------------
ELECTRONICS: (CONTINUED)
10,500 *Kulicke & Soffa Industries, Inc. $ 196,219
4,900 +*Lattice Semiconductor Corp. 232,750
1,500 Linear Technology Corp. 86,344
6,500 *Microchip Technology, Inc. 195,406
11,500 *Microtouch Systems, Inc. 182,563
3,200 *Novellus Systems, Inc. 103,500
11,700 *P-Com, Inc. 204,750
600 *Periphonics Corp. 5,231
16,400 *Photronic, Inc. 399,750
5,600 +*Sanmina Holdings, Inc. 381,150
8,100 *Sawtek, Inc. 213,131
6,700 +*SCI Systems, Inc. 291,869
14,000 *Smart Modular Technologies, Inc. 320,250
8,100 *Speedfam International, Inc. 217,688
19,900 +*Thermo Optek Corp. 305,963
10,600 *Tollgrade Communications, Inc. 250,425
8,300 *Uniphase Corp. 341,856
----------
6,660,654
- ----------------------------------------------------------------
ENERGY: 0.6%
10,500 +*CalEnergy, Inc. 301,875
14,100 +*Offshore Logistics, Inc. 304,031
----------
605,906
- ----------------------------------------------------------------
ENTERTAINMENT & LEISURE: 2.7%
12,200 +Callaway Golf Co. 348,462
15,300 *Cannondale Corp. 336,600
3,800 *Carmike Cinemas, Inc. Cl. A 109,012
11,700 *Coach USA, Inc. 391,950
9,800 *GTECH Holdings Corp. 312,987
9,300 *Hollywood Entertainment Corp. 99,103
18,200 *IMAX Corp. 395,850
5,700 International Game Technology 143,925
7,500 *Lin Television Corp. 409,219
----------
2,547,108
- ----------------------------------------------------------------
FINANCIAL SERVICES: 2.1%
13,200 +*Americredit Corp. 365,475
</TABLE>
MSF-41
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES: (CONTINUED)
13,300 * E Trade Group, Inc. $ 306,316
5,600 +* FirstPlus Financial Group, Inc. 214,550
13,400 * Imperial Credit Industries, Inc. 277,212
8,533 Legg Mason, Inc. 477,315
8,500 + Metris Cos., Inc. 295,375
-----------
1,936,243
- ------------------------------------------------------------------------------------
FOOD & BEVERAGES: 0.6%
3,400 * Mondavi (Robert) Corp. Cl. A 165,963
11,800 * Smithfield Foods, Inc. 386,819
-----------
552,782
- ------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 0.1%
1,375 Fort James Corp. 52,594
- ------------------------------------------------------------------------------------
HEALTHCARE SERVICES: 2.3%
3,300 * Apria Healthcare Group 44,344
11,615 +*Concentra Managed Care, Inc. 391,280
8,300 * Inhale Therapeutic Systems 214,762
19,800 * NovaCare, Inc. 258,638
6,900 * Novoste Corp. 154,388
15,700 * Orthodontic Centers of America, Inc. 261,013
3,000 * Pediatric Services of America, Inc. 56,063
6,100 * Renal Treatment Centers, Inc. 220,363
800 * Sangstat Medical Corp. 32,450
9,666 * Total Renal Care Holdings, Inc. 265,815
14,300 * Urologix, Inc. 260,081
-----------
2,159,197
- ------------------------------------------------------------------------------------
HOTEL & MOTEL: 1.0%
3,300 * Extended Stay America, Inc. 41,044
10,600 La Quinta Inns, Inc. 204,713
10,525 * Promus Hotel Corp. 442,050
13,400 +*Signature Resorts, Inc. 293,963
-----------
981,770
- ------------------------------------------------------------------------------------
HOUSEHOLD APPLIANCES & HOME FURNISHINGS: 0.7%
8,600 * Chicago Miniature Lamp, Inc. 291,862
8,600 + Libbey, Inc. 325,725
----------
617,587
- ------------------------------------------------------------------------------------
INSURANCE: 3.5%
12,600 Amerin Corp. $ 355,950
7,200 + CMAC Investment Corp. 434,700
4,800 Executive Risk, Inc. 335,100
9,700 +*FPA Medical Management, Inc. 181,875
18,200 HCC Insurance Holdings, Inc. 386,750
6,500 Protective Life Corp. 388,375
10,200 Triad Guaranty, Inc. 299,625
14,000 * UICI 490,875
15,300 Western National Corp. 453,263
-----------
3,326,513
- ------------------------------------------------------------------------------------
MACHINERY: 0.1%
1,600 Lindsay Manufacturing Co. 69,400
- ------------------------------------------------------------------------------------
MEDICAL SUPPLY: 2.0%
18,300 * Acuson Corp. 303,094
14,800 ADAC Laboratories 290,450
14,400 * Airgas, Inc. 201,600
9,000 * Gulf South Medical Supply, Inc. 336,937
8,800 * Spine-Tech, Inc. 452,925
7,200 * Theragenics Corp. 261,000
-----------
1,846,006
- ------------------------------------------------------------------------------------
METALS-GOLD: 0.0%
500 Newmont Mining Corp. 14,688
- ------------------------------------------------------------------------------------
METALS-NON-FERROUS: 0.4%
18,200 +*RMI Titanium Co. 364,000
- ------------------------------------------------------------------------------------
MISCELLANEOUS: 2.0%
10,000 * Box Hill Systems Corp. 104,375
10,950 Central Parking Corp. 496,172
17,900 * Equity Corp. International 413,937
14,600 * Learning Tree International, Inc. 424,313
7,800 Stewart Enterprises, Inc. Cl. A 364,163
3,100 * WMF Group Ltd. 39,331
-----------
1,842,291
- ------------------------------------------------------------------------------------
OFFICE & BUSINESS EQUIPMENT: 2.5%
8,200 +*Black Box Corp. 291,100
7,100 +*CSG Systems International, Inc. 285,331
1,100 * Daisytek International Corp. 38,500
</TABLE>
MSF-42
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES ISSUE VALUE
(NOTE 1A)
- ---------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------------
<S> <C> <C>
OFFICE & BUSINESS EQUIPMENT: (CONTINUED)
9,000 *IDX Systems Corp. $ 333,562
18,800 *Micron Electronics, Inc. 170,963
8,000 Symbol Technologies, Inc. 302,000
7,000 *Tech Data Corp. 273,000
15,800 +*Transition Systems, Inc. Cl. A 351,550
14,800 +Viking Office Products, Inc. 325,138
---------
2,371,144
- ---------------------------------------------------------------------
OIL & GAS EXPLORATION: 2.0%
4,000 Cross Timbers Oil Co. 99,750
7,300 Devon Energy Corp. 281,050
5,200 +*EVI, Inc. 269,100
7,000 +*Falcon Drilling Co., Inc. 245,437
7,700 Noble Affiliates, Inc. 271,425
16,140 +*Swift Energy Co. 339,949
800 *United Meridian Corp. 22,500
19,100 Vintage Petroleum, Inc. 362,900
---------
1,892,111
- ---------------------------------------------------------------------
OIL-DOMESTIC: 0.0%
3,600 *Benton Oil & Gas Co. 46,575
- ---------------------------------------------------------------------
OIL-SERVICES: 1.4%
4,100 +*BJ Services Co. 294,944
20,700 *Newpark Resources, Inc. 362,250
5,800 +*SEACOR Holdings, Inc. 349,450
3,600 *Smith International, Inc. 220,950
1,500 *Unova, Inc. 24,656
1,500 *Western Atlas, Inc. 111,000
---------
1,363,250
- ---------------------------------------------------------------------
PLASTICS: 0.4%
5,400 +*Sealed Air Corp. 333,450
- ---------------------------------------------------------------------
POLLUTION CONTROL: 0.5%
14,900 *Allied Waste Industries, Inc. 347,822
2,000 *Culligan Water Technologies, Inc. 100,500
---------
448,322
- ---------------------------------------------------------------------
PRINTING & PUBLISHING: 0.0%
1,000 Houghton Mifflin Co. 38,375
- ---------------------------------------------------------------------
REAL ESTATE: 0.5%
6,953 Apartment Investment & Management Co. Cl. A $255,531
700 Nationwide Health Properties, Inc. 17,850
5,500 Rouse Co. 180,125
---------
453,506
- ---------------------------------------------------------------------
RESTAURANT: 1.0%
7,500 Applebee's International, Inc. 135,234
800 +*Boston Chicken, Inc. 5,137
7,300 CKE Restaurants, Inc. 307,512
7,600 *Landry's Seafood Restaurants, Inc. 183,350
4,000 +*Lone Star Steakhouse & Saloon, Inc. 70,250
8,800 *Outback Steakhouse 254,650
---------
956,133
- ---------------------------------------------------------------------
RETAIL GROCERY: 0.6%
3,500 Quality Food Centers, Inc. 234,500
11,700 Richfood Holdings, Inc. 330,525
---------
565,025
- ---------------------------------------------------------------------
RETAIL TRADE: 7.2%
3,000 +*AnnTaylor Stores Corp. 40,125
10,000 +*Bed Bath & Beyond, Inc. 384,375
11,200 *Borders Group, Inc. 350,700
4,300 +*CDW Computer Centers, Inc. 224,137
8,700 +*Central Garden & Pet Co. 229,462
7,800 *CompUSA, Inc. 241,800
1,300 *Corporate Express, Inc. 16,778
1,000 *Costco Cos., Inc. 44,594
27,800 *Damark International, Inc. Cl. A 274,525
8,500 *Dollar Tree Stores, Inc. 353,281
21,800 *Eagle Hardware & Garden, Inc. 423,737
9,500 *General Nutrition Cos., Inc. 322,406
9,100 +*Gymboree Corp. 249,681
10,100 *Insight Enterprises, Inc. 368,650
6,200 *Jones Apparel Group, Inc. 266,600
500 *Kohls Corp. 34,063
8,300 Lands' End, Inc. 291,019
7,600 *Men's Wearhouse, Inc. 266,000
</TABLE>
MSF-43
<PAGE>
METROPOLITAN SERIES FUND, INC
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES ISSUE VALUE
(NOTE 1A)
- ------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ------------------------------------------------------------------------
<S> <C> <C>
RETAIL TRADE: (CONTINUED)
2,000 *Petco Animal Supplies, Inc. $ 48,500
16,200 *Renters Choice, Inc. 334,125
14,400 +*Rexall Sundown, Inc. 435,150
10,300 Ross Stores, Inc. 375,306
12,300 *Stein Mart, Inc. 328,256
1,800 TJX Cos., Inc. 61,875
16,000 +*West Marine, Inc. 360,000
6,100 *WetSeal, Inc. Cl. A 180,331
6,100 +*Williams Sonoma, Inc. 255,438
---------
6,760,914
- ------------------------------------------------------------------------
SHIPBUILDING: 0.4%
14,000 *Avondale Industries, Inc. 416,500
- ------------------------------------------------------------------------
SOFTWARE: 6.5%
8,800 +*Advent Software, Inc. 257,950
6,900 *Arbor Software Corp. 280,744
3,440 *Ascend Communications, Inc. 84,602
6,200 Autodesk, Inc. 228,625
14,900 *AXENT Technologies, Inc. 255,162
1,600 *BMC Software, Inc. 104,900
14,200 *Cadence Design Systems, Inc. 347,900
3,400 *Compuware Corp. 108,906
7,400 *Datastream Systems, Inc. 227,550
6,100 +*Documentum, Inc. 256,962
7,200 *Electronic Arts, Inc. 272,475
8,000 *Hyperion Software Corp. 288,000
8,900 +*Intuit, Inc. 367,681
8,000 +*JDA Software Group, Inc. 277,000
8,600 *Keane, Inc. 349,375
11,350 *National Instruments Corp. 339,081
1,800 +*Parametric Technology Corp. 85,163
15,600 +*Premiere Technologies, Inc. 429,975
7,300 *Remedy Corp. 153,756
9,300 *Structural Dynamics Research Corp. 210,413
8,500 *Synopsys, Inc. 303,344
1,500 *Systemsoft Corp. 9,656
8,800 *Transaction Systems Architects, Inc. Cl. A 333,850
5,250 +*VERITAS Software Co. 267,094
6,500 *Visio Corp. 250,656
---------
6,090,820
- -------------------------------------------------------------------------
TECHNOLOGY: 0.0%
2,086 .+*Thermo Vision Corp. 16,949
- -------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT & SERVICES: 4.9%
2,000 +*ADC Telecommunications, Inc. 83,625
15,300 *Aspect Telecommunications Corp. 321,300
5,000 *Avant Corp. 84,062
15,300 +*Coherent Communications Systems Corp. 431,269
3,700 *CommNet Cellular, Inc. 132,044
9,300 +*Comverse Technology, Inc. 361,537
10,400 +*Davox Corp. 337,350
6,200 *Dialogic Corp. 270,087
18,600 *Digital Microwave Corp. 270,862
8,900 *Harmonic Lightwaves, Inc. 97,344
5,400 Inter-Tel, Inc. 105,638
11,500 +*Level One Communications, Inc. 324,156
9,500 *MRV Communications, Inc. 226,219
5,900 National Data Corp. 213,138
7,300 *Networks Associates, Inc. 385,303
4,800 *Pacific Gateway Exchange, Inc. 258,300
20,500 *Paging Network, Inc. 221,016
16,000 *Pairgain Technologies, Inc. 310,500
13,200 *Proxim, Inc. 149,738
4,200 *Sitel Corp. 38,325
---------
4,621,813
- -------------------------------------------------------------------------
TEXTILES & APPAREL: 1.4%
10,500 *Nautica Enterprises, Inc. 246,750
11,200 +*North Face, Inc. 246,750
8,400 St. John Knits, Inc. 336,000
20,350 +Wolverine World Wide, Inc. 460,419
---------
1,289,919
- -------------------------------------------------------------------------
</TABLE>
MSF-44
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES ISSUE VALUE
(NOTE 1A)
- --------------------------------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION: 0.3%
12,000 * Heartland Express, Inc. $ 327,750
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION-AIRLINES: 0.6%
15,600 Comair Holdings, Inc. 378,300
6,600 * Eagle USA Airfreight, Inc. 188,925
---------
567,225
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION-RAILROAD: 0.5%
13,600 * Swift Transportation Co., Inc. 442,850
2,200 +* Wisconsin Central Transportation Corp. 51,563
---------
494,413
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION-TRUCKING: 0.4%
8,900 Expeditors International of Washington, Inc. 346,544
- --------------------------------------------------------------------------------------------------------------
UTILITIES-TELEPHONE: 1.1%
3,600 ACC Corp. 182,250
13,761 * LCI International, Inc. 423,150
10,300 * Omnipoint Corp. 240,119
9,400 +* Tel-Save Holdings, Inc. 186,239
---------
1,031,758
- --------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $86,934,347) 91,984,119
----------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE ISSUE INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1A)
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 3.8%
- --------------------------------------------------------------------------------------------------------------
$ 665,000 Associates Financial
Services Co. 5.580% 2/05/98 $ 661,392
1,000,000 Bell Atlantic Financial
Services 5.850% 1/27/98 995,775
413,000 Federal Farm Credit Bank 5.640% 2/12/98 410,282
1,519,000 Federal Home Loan
Mortgage Assoc.. 4.750% 1/02/98 1,518,800
---------------
TOTAL SHORT TERM OBLIGATIONS
(Cost: $3,586,249)............................................ 3,586,249
---------------
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 101.6%
(Cost: $90,520,596)............................................ 95,570,368
OTHER ASSETS LESS LIABILITIES: (1.6)%.......................... (1,550,362)
--------------
NET ASSETS: 100.0%............................................. $94,020,006
==============
- ---------------------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- ---------------------------
*Non-income producing security.
+Securities on loan.
.Restricted security
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $11,383,409
with collateral backing valued at $11,584,484.
RESTRICTED SECURITIES: (Note 2)
- -------------------------------
<TABLE>
<CAPTION>
Valuation as of
Acquisition Acquisition December 31,
Issue Date Cost 1997
----- ---- ---- ----
<S> <C> <C> <C>
Thermo Vision Corp......... 12/16/97 $ 16,964 $ 16,949
</TABLE>
The aggregate value of restricted securities at December 31, 1997 was $16,949 or
.02% of the T. Rowe Price Small Cap Growth Portfolio's net assets.
See Notes to Financial Statements.
MSF-45
<PAGE>
METROPOLITAN SERIES FUND, INC.
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SCUDDER GLOBAL EQUITY PORTFOLIO
DECEMBER 31,1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- -------------------------------------------------------------------------------------
COMMON STOCK: 71.7%
- -------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA: 0.9%
15,700 YPF SA ADR $ 536,744
----------
TOTAL INVESTMENTS IN ARGENTINA 536,744
- -------------------------------------------------------------------------------------
AUSTRALIA: 2.1%
25,200 Broken Hill Proprietary Co. 234,043
270,200 Fosters Brewing Group Ltd. 514,220
74,300 Woodside Petroleum Ltd. 523,959
----------
TOTAL INVESTMENTS IN AUSTRALIA 1,272,222
- -------------------------------------------------------------------------------------
AUSTRIA: 0.4%
5,800 Flughafen Wien AG 230,503
----------
TOTAL INVESTMENTS IN AUSTRIA 230,503
- -------------------------------------------------------------------------------------
BERMUDA: 0.6%
3,900 +EXEL Ltd. 247,163
1,600 Mid Ocean Ltd. 86,800
----------
TOTAL INVESTMENTS IN BERMUDA 333,963
- -------------------------------------------------------------------------------------
BRAZIL: 0.4%
18,200 +Aracruz Celulose SA ADR 261,625
---------
TOTAL INVESTMENTS IN BRAZIL 261,625
- -------------------------------------------------------------------------------------
CANADA: 3.0%
8,800 BCE, Inc. 293,426
15,100 Canadian National Railway Co. 711,123
18,900 Canadian Pacific Ltd. 509,184
17,300 The Molson Cos., Ltd. Cl. A ADR 308,702
----------
TOTAL INVESTMENTS IN CANADA 1,822,435
- -------------------------------------------------------------------------------------
FRANCE: 4.2%
18,075 Assurance Generale de France 957,733
9,089 AXA SA 703,289
9,104 Michelin Cl. B 458,339
7,921 Schneider SA 430,104
----------
TOTAL INVESTMENTS IN FRANCE 2,549,465
- -------------------------------------------------------------------------------------
GERMANY: 11.9%
2,320 Allianz Holdings AG 600,973
26,205 BASF AG 928,635
15,662 Bayer AG 585,056
11,777 Bayerische Vereinsbank AG 770,534
15,259 Commerzbank AG 600,538
19,000 Deutsche Telekom 357,514
2,394 Heidelberger Druckmaschinen AG 131,747
18,754 Hoechst AG 656,773
2,408 Muenchener Rueckversicherungs AG 907,543
15,345 VEBA AG 1,044,922
1,219 Viag AG 656,611
----------
TOTAL INVESTMENTS IN GERMANY 7,240,846
- -------------------------------------------------------------------------------------
GHANA: 0.1%
9,886 Ashanti Goldfields Ltd. GDR 74,145
----------
TOTAL INVESTMENTS IN GHANA 74,145
- -------------------------------------------------------------------------------------
HONG KONG: 1.5%
25,000 Cheung Kong Holdings 163,731
34,000 Citic Pacific Ltd. 135,140
68,000 Hutchison Whampoa Ltd. 426,481
47,000 New World Development Co., Ltd. 162,550
----------
TOTAL INVESTMENTS IN HONG KONG 887,902
- -------------------------------------------------------------------------------------
ITALY: 0.8%
247,300 Instituto Nazionale Delle Assicurazioni SPA 501,170
----------
TOTAL INVESTMENTS IN ITALY 501,170
- -------------------------------------------------------------------------------------
JAPAN: 3.9%
20,000 Canon, Inc. 465,651
26,000 Dai Tokyo Fire & Marine Insurance Co., Ltd. 89,209
84,000 Daiwa Securities Co., Ltd. 289,500
40,000 *Minebea Co., Ltd. 428,889
2,200 Nichiei Co., Ltd. 234,204
45,000 Nomura Securities Co., Ltd. 599,678
600 Shohkoh Fund & Co., Ltd. 182,890
28,000 Sumitomo Metal Mining Co., Ltd. 92,211
----------
TOTAL INVESTMENTS IN JAPAN 2,382,232
- -------------------------------------------------------------------------------------
NETHERLANDS: 1.8%
5,200 AEGON Insurance Group NV 462,900
9,265 ING Groep NV 390,221
4,400 Philips Electronics NV 263,872
----------
TOTAL INVESTMENTS IN NETHERLANDS 1,116,993
- -------------------------------------------------------------------------------------
</TABLE>
MSF-46
<PAGE>
METROPOLITAN SERIES FUND, INC.
- ------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------
SCUDDER GLOBAL EQUITY PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- ---------------------------------------------------------------------------------------------------
COMMON STOCK: (CONTINUED)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA: 0.6%
9,100 Anglo American Platinum Corp., Ltd. ADR $ 121,549
23,287 Sasol Ltd. 244,043
----------
TOTAL INVESTMENTS IN SOUTH AFRICA 365,592
- ----------------------------------------------------------------------------------------------
SOUTH KOREA: 0.1%
2,080 Samsung Display Devices 39,268
1,230 * Samsung Electronics Co., Ltd. 27,865
----------
TOTAL INVESTMENTS IN SOUTH KOREA 67,133
- ----------------------------------------------------------------------------------------------
SWEDEN: 2.6%
35,282 Astra AB Cl. A 611,000
10,200 Autoliv, Inc. 334,050
13,512 Skandia Foersaekrings AB 637,318
----------
TOTAL INVESTMENTS IN SWEDEN 1,582,368
- ----------------------------------------------------------------------------------------------
SWITZERLAND: 7.4%
1,997 * Ciba Specialty Chemicals AG 237,803
682 Clariant AG 569,422
5,967 Credit Suisse Group 922,900
627 Holderbank Financiere Glarus AG 511,486
411 Nestle SA 615,712
562 Novartis AG 911,538
23 Schindler Holdings AG 23,957
369 Swiss Reinsurance AG 689,918
----------
TOTAL INVESTMENTS IN SWITZERLAND 4,482,736
- ----------------------------------------------------------------------------------------------
UNITED KINGDOM: 10.0%
44,737 BOC Group PLC 735,540
85,000 British Telecommunications PLC 669,763
76,400 Carlton Communications PLC 589,789
132,300 General Electric Co. PLC 857,259
122,700 National Grid Group PLC 582,435
8,000 * Norwich Union PLC 47,961
13,600 Reuters Holdings PLC 148,548
18,200 Rio Tinto-Zinc Corp. PLC 224,351
113,100 Shell Transport & Trading Co. PLC 793,224
35,956 SmithKline Beecham PLC 370,587
120,700 Unilever PLC 1,038,234
----------
TOTAL INVESTMENTS IN UNITED KINGDOM 6,057,691
- ----------------------------------------------------------------------------------------------
UNITED STATES: 19.4%
19,700 * Advanced Micro Devices, Inc. $ 353,369
5,800 Anheuser-Busch Co., Inc. 255,200
900 * Biogen, Inc. 32,738
11,900 Boeing Co. 582,356
6,300 +* Boston Scientific Corp. 289,013
4,300 Charles Schwab Corp. 180,331
4,500 * Chiron Corp. 76,500
29,100 CINergy Corp. 1,114,894
1,800 * Cisco Systems, Inc. 100,350
6,400 Duke Energy Corp. 354,400
20,400 Electronic Data Systems Corp. 896,325
14,900 Enron Corp. 619,281
9,000 + Entergy Corp. 269,438
16,200 First Data Corp. 473,850
2,700 Guidant Corp. 168,075
11,500 International Business Machines Corp. 1,202,469
7,700 MBIA, Inc. 514,456
5,900 Newmont Mining Corp. 173,313
11,600 * Parametric Technology Corp. 549,550
16,200 + Praxair, Inc. 729,000
13,600 * Sabre Group Holdings, Inc. Cl. A 392,700
3,100 +* Sterling Commerce, Inc. 119,156
11,900 +* Stillwater Mining Co. 199,325
9,100 +* Tele-Communications International, Inc. Cl. A 163,800
2,800 * Tele-Comm TCI Group Cl. A 78,225
8,400 * Toys 'R Us, Inc. 264,075
8,500 UNUM Corp. 462,188
10,800 +* USAirways Group, Inc. 675,000
18,200 + Williams Cos., Inc. 516,426
----------
TOTAL INVESTMENTS IN UNITED STATES 11,805,803
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $42,145,283 )............................................43,571,568
</TABLE>
MSF-47
<PAGE>
METROPOLITAN SERIES FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SCUDDER GLOBAL EQUITY PORTFOLIO
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES ISSUE (NOTE 1A)
- -------------------------------------------------------------------------------------------------------
PREFERRED STOCK: 4.4%
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL: 1.7%
550,000 Companhia Cervejaria Brahma ADR $ 369,607
24,000 Companhia Vale do Rio Doce ADR 482,786
28,600 Usinas Siderurgicas de Minas Gerais S/A ADR 169,135
------------
TOTAL INVESTMENTS IN BRAZIL 1,021,528
- -------------------------------------------------------------------------------------------------------
GERMANY: 2.7%
22,500 RWE AG 950,554
2,100 SAP AG 686,984
------------
TOTAL INVESTMENTS IN GERMANY 1,637,538
- -------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost: $2,508,933)......................................... 2,659,066
------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACE INTEREST MATURITY VALUE
AMOUNT ISSUE RATE DATE (NOTE 1A)
- -------------------------------------------------------------------------------------------------------
FEDERAL TREASURY OBLIGATIONS: 13.3%
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
+ $5,895,000 U.S. Treasury Bond 6.375% 8/15/27 $ 6,217,398
+ 7,600,000 U.S. Treasury Bond
Strip 0.000% 8/15/21 1,834,184
TOTAL FEDERAL TREASURY OBLIGATIONS
(Cost: $7,798,583)........................................ 8,051,582
------------
- -------------------------------------------------------------------------------------------------------
FOREIGN OBLIGATIONS: 3.1%
- -------------------------------------------------------------------------------------------------------
United
Kingdom 994,000 UK Treasury 8.500% 7/16/07 1,873,970
TOTAL FOREIGN OBLIGATIONS
(Cost: $1,760,713)........................................ 1,873,970
------------
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: 3.1%
- -------------------------------------------------------------------------------------------------------
$1,879,000 State Street Bank
Repurchase Agreement
(U.S. Treasury Note
collateralized, dated
12/31/97 due 1/2/98 @
12.375% with a market
value of $1,897,979) 5.000% 1/02/98 $ 1,879,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost: $1,879,000)........................................ 1,879,000
------------
- -------------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 6.6%
- -------------------------------------------------------------------------------------------------------
4,000,000 Federal Home Loan
Mortgage Assn. 4.750% 1/02/98 3,999,472
TOTAL SHORT TERM OBLIGATIONS
(Cost: $3,999,472)........................................ 3,999,472
------------
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 102.2%
(Cost: $60,091,984)....................................... 62,034,658
OTHER ASSETS LESS LIABILITIES: (2.2%)..................... (1,322,516)
------------
TOTAL NET ASSETS: 100.0%.................................. $60,712,142
============
- -------------------------------------------------------------------------------------------------------
</TABLE>
LEGEND:
- ------
* Non-income producing security.
+ Securities on loan.
ADR (American depository receipt) represents ownership of foreign securities.
SECURITIES LENDING: (Note 7)
- ----------------------------
As of December 31, 1997, the market value of securities loaned was $5,654,717
with collateral backing valued at $5,745,499.
See Notes to Financial Statements.
MSF-48
<PAGE>
METROPOLITAN SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
- --------------------------------------------------------------------------------
SCUDDER GLOBAL EQUITY PORTFOLIO
AS A PERCENTAGE OF TOTAL VALUE OF INVESTMENTS
<TABLE>
<S> <C>
Aerospace.................................... 0.9%
Automotive................................... 0.5
Banking...................................... 4.1
Biotechnology................................ 0.2
Broadcasting................................. 1.1
Business Services............................ 0.8
Chemicals.................................... 6.9
Construction Materials....................... 0.8
Consumer Products............................ 1.7
Consumer Services............................ 0.4
Drugs & Health Care.......................... 3.1
Electrical Equipment......................... 1.8
Electronics.................................. 1.4
Federal Agency Obligations................... 6.5
Federal Treasury Obligations................. 13.0
Financial Services........................... 5.1
Food & Beverages............................. 3.3
Forest Products & Paper...................... 0.4
Government................................... 3.0
Insurance.................................... 11.8
Machinery.................................... 0.9
Medical Supply............................... 1.8
Metals-Gold.................................. 0.4
Metals-Non-Ferrous........................... 0.3
Metals-Steel & Iron.......................... 1.8
Mining....................................... 0.7
Multi-Industry............................... 2.8
Office & Business Equipment.................. 2.9
Oil-International............................ 3.7
Oil-Services................................. 0.8
Printing & Publishing........................ 0.2
Real Estate.................................. 0.5
Retail Trade................................. 0.4
Software..................................... 3.6
Telecommunications Equipment & Services...... 0.8
Tires & Rubber............................... 0.7
Transportation-Airlines...................... 1.7
Transportation-Railroad...................... 1.2
Utilities-Electric........................... 5.4
Utilities-Gas Distribution & Pipelines....... 1.0
Utilities-Telephone.......................... 1.6
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements.
MSF-49
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
STATE STREET
STATE STREET STATE STREET RESEARCH STATE STREET
RESEARCH RESEARCH MONEY RESEARCH
GROWTH INCOME MARKET DIVERSIFIED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Assets: Investments, at value (Note 1A) (1)................... 2,372,392,230 $406,221,101 $39,108,709 $1,980,003,912
Cash.................................................. 2,138 226,496 1,268 4,426
Foreign currencies held at value (2).................. -- -- -- --
Receivable for investment securities sold............. 15,150,058 -- -- 7,179,040
Receivable for fund shares sold....................... 1,627,249 -- 263,439 991,186
Receivable for dividends and interest................. 3,398,499 5,370,184 122,536 12,632,499
Unrealized appreciation on forward contacts (Note 8).. -- 1,048,862 -- 2,182,853
Collateral for securities loaned (Note 7)............. 145,698,568 31,731,201 -- 118,838,443
Other assets.......................................... 121 55 16 124
------------- ----------- ---------- -------------
TOTAL ASSETS...................... 2,538,268,863 444,597,899 39,495,968 2,121,832,483
------------- ----------- ---------- -------------
LIABILITIES: Payable for investment securities purchased........... 42,345,146 -- -- 19,775,414
Payable for capital stock repurchased................. 53,024 482,878 -- 29,613
Return of collateral for securities loaned (Note 7)... 145,698,568 31,731,201 -- 118,838,443
Accrued investment management fee (Note 3)............ 947,947 114,766 8,384 727,140
Accrued and other liabilities......................... 162,595 78,423 7,745 230,159
--------------- ------------- ------------ ---------------
TOTAL LIABILITIES................. 189,207,280 32,407,268 16,129 139,600,769
--------------- ------------- ------------ ---------------
NET ASSETS: $2,349,061,583 $412,190,631 $39,479,839 $1,982,231,714
=============== ============= ============ ===============
COMPOSITION
OF NET Paid-in-capital....................................... 1,927,904,288 405,082,154 39,490,478 1,769,131,400
ASSETS: Undistributed/(overdistributed) net investment income/
(loss)................................................ (266,642) 1,182,387 (13,004) (4,689,336)
Net unrealized appreciation/(depreciation)............ 355,872,622 7,694,955 -- 179,266,518
Accumulated net realized gain/(loss).................. 65,551,315 (1,768,865) 2,365 38,523,132
-------------- ------------ ----------- --------------
NET ASSETS........................ $2,349,061,583 $412,190,631 $39,479,839 $1,982,231,714
=============== ============= ============ ===============
SHARES OUTSTANDING................ 73,600,071 32,555,011 3,803,743 116,712,757
=============== ============= ============ ===============
NET ASSET VALUE PER SHARE......... $31.92 $12.66 $10.38 $16.98
=============== ============= ============ ===============
---------------------------------------------------------------------------------------------------------------------
Notes:
(1) Investments, at cost.............................. $2,016,519,608 $399,551,866 $39,108,709 $1,802,872,213
(2) Cost of foreign currency.......................... -- -- -- --
</TABLE>
See Notes to Financial Statements
MSF-50
<PAGE>
<TABLE>
<CAPTION>
STATE STREET STATE STREET LOOMIS
RESEARCH METLIFE RESEARCH SAYLES T. ROWE PRICE SCUDDER
AGGRESSIVE STOCK INTERNATIONAL HIGH YIELD JANUS SMALL CAP GLOBAL
GROWTH INDEX STOCK BOND MID CAP GROWTH EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$1,382,032,870 $2,016,263,121 $263,317,412 $27,748,520 $109,142,625 $ 95,570,368 $62,034,658
874 27,142 2,119,921 754 82,019 933 297
-- -- 448,924 -- 115 -- 1,277
5,883,607 4,811,407 -- -- 46,012 239,044 60,669
4,355,548 2,124,004 951,886 116,488 -- 9 --
546,342 2,739,219 491,737 468,883 15,844 8,255 243,382
-- -- -- -- -- -- --
120,801,619 149,054,407 4,800,353 764,110 12,396,894 11,584,484 5,745,499
73 51 348,230 -- 4,979 -- 34,344
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
1,513,620,933 2,175,019,351 272,478,463 29,098,755 121,688,488 107,403,093 68,120,126
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
-- 4,987,078 270,803 510,498 5,200,052 400,793 297,369
902 381 -- -- 124,692 1,343,477 1,313,785
120,801,619 149,054,407 4,800,353 764,110 12,396,894 11,584,484 5,745,499
814,133 418,735 176,539 15,613 59,014 39,741 34,731
48,667 78,714 141,959 4,868 56,195 14,592 16,600
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
121,665,321 154,539,315 5,389,654 1,295,089 17,836,847 13,383,087 7,407,984
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
$1,391,955,612 $2,020,480,036 $267,088,809 $27,803,666 $103,851,641 $ 94,020,006 $60,712,142
============== ============== ============ =========== ============ ============= ===========
1,182,485,095 1,341,146,832 279,304,895 28,873,521 93,962,960 89,404,013 58,891,468
(2,215,320) (222,216) 2,309,120 (672) (31,445) (7,343) (3,455)
196,900,177 680,466,140 (4,246,703) (1,078,040) 10,847,186 5,049,772 1,942,819
14,785,660 (910,720) (10,278,503) 8,857 (927,060) (426,436) (118,690)
- -------------- -------------- ------------ ----------- ------------ ------------- -----------
$1,391,955,612 $2,020,480,036 $267,088,809 $27,803,666 $103,851,641 $ 94,020,006 $60,712,142
============== ============== ============ =========== ============ ============= ===========
50,412,220 70,203,936 22,885,826 2,741,057 8,132,247 7,915,609 5,595,122
============== ============== ============ =========== ============ ============= ===========
$27.61 $28.78 $11.67 $10.14 $12.77 $11.88 $10.85
============== ============== ============ =========== ============ ============= ===========
- --------------------------------------------------------------------------------------------------------------------
$1,185,132,693 $1,335,796,981 $267,549,270 $28,826,155 $98,258,908 $90,520,596 $60,091,984
-- -- 464,921 -- 118 -- 1,277
</TABLE>
MSF-51
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
STATE STREET
STATE STREET STATE STREET RESEARCH STATE STREET
RESEARCH RESEARCH MONEY RESEARCH
GROWTH INCOME MARKET DIVERSIFIED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT Interest (Note 1B)................................. $ 8,870,022 $26,950,246 $2,346,096 $ 53,238,753
INCOME: Dividends (Note 1B)................................ 27,400,301 -- -- 13,797,879
-------------- ------------- ------------ -------------
Total investment income, net of
withholding taxes (1)........................ 36,270,323 26,950,246 2,346,096 67,036,632
-------------- ------------- ------------ -------------
EXPENSES: Investment management fee (Note 3A)................ 7,305,001 1,102,819 105,515 5,811,475
Printing and distribution fees..................... 927,068 186,469 20,807 675,907
Custodian and transfer agent fees.................. 299,244 146,035 41,547 347,729
Directors fees..................................... 12,097 12,793 12,097 12,097
Other operating expenses........................... 107,866 43,436 25,415 89,478
-------------- ------------- ------------ -------------
Total expenses before reimbursement............ 8,651,276 1,491,552 205,381 6,936,686
-------------- ------------- ------------ -------------
Less: expense reimbursement................... -- -- -- --
-------------- ------------- ------------ -------------
Net expenses................................... 8,651,276 1,491,552 205,381 6,936,686
-------------- ------------- ------------ -------------
NET INVESTMENT INCOME/(LOSS)................... 27,619,047 25,458,694 2,140,715 60,099,946
-------------- ------------- ------------ -------------
NET REALIZED Investments........................................ 346,762,521 2,318,758 561 215,044,518
GAIN/(LOSS) ON: Foreign currency transactions (Note 8)............. (44,837) 722,568 -- 1,625,104
-------------- ------------- ------------ -------------
NET REALIZED GAIN/(LOSS)....................... 346,717,684 3,041,326 561 216,669,622
-------------- ------------- ------------ -------------
NET UNREALIZED Beginning of period investments and foreign
APPRECIATION/ currency holdings (Notes 8, 10).................. 243,748,890 (417,499) -- 139,692,509
(DEPRECIATION): End of period investments and foreign currency
holdings (Notes 8, 10)........................... 355,872,622 7,694,955 -- 179,266,518
-------------- ------------- ------------ -------------
NET UNREALIZED APPRECIATION/(DEPRECIATION)..... 112,123,732 8,112,454 -- 39,574,009
-------------- ------------- ------------ -------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.............................. $486,460,463 $36,612,474 $2,141,276 $316,343,577
============== ============= ============ =============
-----------------------------------------------------------------------------------------------------------------
Notes:
(1) Withholding taxes.............................. $593,357 -- -- $340,945
(2) For the Period March 3, 1997 through December
31, 1997.
</TABLE>
See Notes to Financial Statements.
MSF-52
<PAGE>
<TABLE>
<CAPTION>
STATE STREET STATE STREET LOOMIS
RESEARCH METLIFE RESEARCH SAYLES
AGGRESSIVE STOCK INTERNATIONAL HIGH YIELD JANUS
GROWTH INDEX STOCK BOND MID CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO /2/ PORTFOLIO /2/
---------------- --------------- ------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
$ 4,233,420 $ 404,313 $ 222,761 $ 975,310 $ 243,270
5,423,522 27,824,265 5,171,868 51,662 130,894
--------------- ----------------- --------------- -------------- -------------
9,656,942 28,228,578 5,394,629 1,026,972 374,164
--------------- ----------------- --------------- -------------- -------------
9,931,653 3,961,131 2,258,438 84,589 263,954
676,855 785,914 148,160 4,795 13,252
246,379 270,763 625,649 54,199 82,185
12,097 12,097 12,097 10,081 10,081
106,255 97,895 41,165 21,955 22,214
--------------- ----------------- --------------- -------------- -------------
10,973,239 5,127,800 3,085,509 175,619 391,686
--------------- ----------------- --------------- -------------- -------------
-- -- -- 67,120 57,892
--------------- ----------------- --------------- -------------- -------------
10,973,239 5,127,800 3,085,509 108,499 333,794
--------------- ----------------- --------------- -------------- -------------
(1,316,297) 23,100,778 2,309,120 918,473 40,370
--------------- ----------------- --------------- -------------- -------------
30,729,705 17,206,045 26,192,152 326,594 (653,942)
-- 11 (18,336,495) (658) 61,966
--------------- ----------------- --------------- -------------- -------------
30,729,705 17,206,056 7,855,657 325,936 (591,976)
--------------- ----------------- --------------- -------------- -------------
136,862,235 303,651,601 11,038,872 -- --
196,900,177 680,466,140 (4,246,703) (1,078,040) 10,847,186
--------------- ----------------- --------------- -------------- -------------
60,037,942 376,814,539 (15,285,575) (1,078,040) 10,847,186
--------------- ----------------- --------------- -------------- -------------
$ 89,451,350 $417,121,373 $ (5,120,798) $ 166,369 $10,295,580
=============== ================= =============== ============== =============
- --------------------------------------------------------------------------------------------------------------------------------
$ 12,233 $ 160,288 $ 743,374 $ 288 $ 4,537
<CAPTION>
T. ROWE PRICE SCUDDER
SMALL CAP GLOBAL
GROWTH EQUITY
PORTFOLIO /2/ PORTFOLIO /2/
-------------- ------------
<C> <C>
$ 171,116 $ 434,388
86,518 389,780
------------- -------------
257,634 824,168
------------- -------------
187,380 201,758
12,988 12,992
95,715 136,147
10,081 10,081
22,207 24,527
------------- -------------
328,371 385,505
------------- -------------
73,549 120,837
------------- -------------
254,822 264,668
------------- -------------
2,812 559,500
------------- -------------
(426,436) 93,717
-- (131,480)
------------- -------------
(426,436) (37,763)
------------- -------------
-- --
5,049,772 1,942,819
------------- -------------
5,049,772 1,942,819
------------- -------------
$4,626,148 $2,464,556
============ =============
- ----------------------------------------------------------
$139 $42,288
</TABLE>
MSF-53
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STATE STREET STATE STREET
RESEARCH GROWTH RESEARCH INCOME
PORTFOLIO PORTFOLIO
-------------------------------------- --------------------------------------
INCREASE/(DECREASE) IN NET ASSETS FROM: FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
----------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS: Net investment income/(loss).......... $ 27,619,047 $ 17,239,321 $ 25,458,694 $ 24,051,031
Net realized gain/(loss) from
investment and foreign currency
transactions........................... 346,717,684 236,501,143 3,041,326 4,419,955
Unrealized appreciation/(depreciation) of
investments and foreign currency
holdings............................... 112,123,732 15,205,595 8,112,454 (14,942,561)
--------------- ---------------- -------------- --------------
Net increase/(decrease) in net assets
resulting from operations.............. 486,460,463 268,946,059 36,612,474 13,528,425
--------------- ---------------- -------------- --------------
DISTRIBUTIONS Net investment income.................... (27,776,294) (17,239,740) (26,501,290) (23,474,190)
TO Net realized gain from investment
SHAREHOLDERS: transactions........................... (386,087,667) (134,047,463) (1,217,790) (697,717)
--------------- ---------------- -------------- --------------
Total Distributions (Note 4)............. (413,863,961) (151,287,203) (27,719,080) (24,171,907)
--------------- ---------------- -------------- --------------
CAPITAL SHARE Net proceeds from sale of shares......... 281,613,597 246,392,853 25,921,259 46,724,830
TRANSACTIONS: Net asset value of shares issued to
shareholders in reinvestment of
distributions.......................... 413,863,961 151,287,203 27,719,080 24,171,907
Shares redeemed.......................... (16,740,952) (12,361,034) (33,737,940) (26,771,445)
--------------- ---------------- -------------- --------------
Net Capital Stock Transactions (Note 9).. 678,736,606 385,319,022 19,902,399 44,125,292
--------------- ---------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS.... 751,333,108 502,977,878 28,795,793 33,481,810
NET ASSETS: Beginning of period.......... 1,597,728,475 1,094,750,597 383,394,838 349,913,028
--------------- ---------------- -------------- --------------
NET ASSETS: End of period................ $ 2,349,061,583 $ 1,597,728,475 $ 412,190,631 $ 383,394,838
=============== ================ ============== ==============
<CAPTION>
STATE STREET
RESEARCH MONEY MARKET
PORTFOLIO
--------------------------------------
INCREASE/(DECREASE) IN NET ASSETS FROM: FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996
----------------- ----------------
<S> <C> <C>
OPERATIONS: Net investment income/(loss)............. $ 2,140,715 $ 2,028,460
Net realized gain/(loss) from
investment and foreign currency
transactions........................... 561 1,031
Unrealized appreciation/(depreciation) of
investments and foreign currency
holdings............................... -- --
------------- --------------
Net increase/(decrease) in net assets
resulting from operations.............. 2,141,276 2,029,491
------------- --------------
DISTRIBUTIONS Net investment income.................... (2,143,228) (2,045,447)
TO Net realized gain from investment
SHAREHOLDERS: transactions........................... (561) (1,192)
------------- --------------
Total Distributions (Note 4)............. (2,143,789) (2,046,639)
------------- --------------
CAPITAL SHARE Net proceeds from sale of shares......... 25,785,388 19,329,406
TRANSACTIONS: Net asset value of shares issued to
shareholders in reinvestment of
distributions.......................... 2,143,789 2,046,639
Shares redeemed.......................... (30,083,456) (20,178,541)
------------- --------------
Net Capital Stock Transactions (Note 9).. (2,154,279) 1,197,504
------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS.... (2,156,792) 1,180,356
NET ASSETS: Beginning of period.......... 41,636,631 40,456,275
------------- --------------
NET ASSETS: End of period................ $ 39,479,839 $ 41,636,631
============= ==============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
MSF-54
<PAGE>
<TABLE>
<CAPTION>
STATE STREET RESEARCH STATE STREET RESEARCH METLIFE
DIVERSIFIED AGGRESSIVE GROWTH STOCK INDEX
PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------- ------------------------------------ ------------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996 1997 1996
- --------------- --------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
$ 60,099,946 $ 42,980,569 $ (1,316,297) $ (1,338,007) $ 23,100,778 $ 16,426,973
216,669,622 135,252,779 30,729,705 78,458,844 17,206,056 7,811,922
39,574,009 (3,189,270) 60,037,942 (4,364,360) 376,814,539 156,236,698
- --------------- -------------- -------------- -------------- -------------- --------------
316,343,577 175,044,078 89,451,350 72,756,477 417,121,373 180,475,593
- --------------- -------------- -------------- -------------- -------------- --------------
(61,064,178) (42,176,327) -- -- (23,568,303) (16,158,730)
(237,658,263) (84,750,798) (55,883,502) (35,104,245) (16,507,210) (10,189,362)
- --------------- -------------- -------------- -------------- -------------- --------------
(298,722,441) (126,927,125) (55,883,502) (35,104,245) (40,075,513) (26,348,092)
- --------------- -------------- -------------- -------------- -------------- --------------
226,893,034 171,456,907 103,191,357 318,837,326 496,672,317 330,175,386
298,722,441 126,927,125 55,883,502 35,104,245 40,075,513 26,348,092
(9,846,064) (12,493,415) (122,536,459) (28,659,672) (15,610,988) (24,176,884)
- --------------- -------------- -------------- -------------- -------------- --------------
515,769,411 285,890,617 36,538,400 325,281,899 521,136,842 332,346,594
- --------------- -------------- -------------- -------------- -------------- --------------
533,390,547 334,007,570 70,106,248 362,934,131 898,182,702 486,474,095
1,448,841,167 1,114,833,597 1,321,849,364 958,915,233 1,122,297,334 635,823,239
- --------------- -------------- -------------- -------------- -------------- --------------
$ 1,982,231,714 $1,448,841,167 $1,391,955,612 $1,321,849,364 $2,020,480,036 $1,122,297,334
=============== ============== ============== ============== ============== ==============
<CAPTION>
STATE STREET RESEARCH
INTERNATIONAL STOCK
PORTFOLIO
- ---------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996
- ------------ --------------
<S> <C>
$ 2,309,120 $ 1,728,132
7,855,657 (25,299,526)
(15,285,575) 17,465,452
- ------------ --------------
(5,120,798) (6,105,942)
- ------------ --------------
-- (16,086)
-- (3,229,290)
- ------------ --------------
-- (3,245,376)
- ------------ --------------
49,148,625 43,194,283
-- 3,245,376
(80,764,501) (30,723,899)
- ------------ --------------
(31,615,876) 15,715,760
- ------------ --------------
(36,736,674) 6,364,442
303,825,483 297,461,041
- ------------ --------------
$267,088,809 $ 303,825,483
============ ==============
</TABLE>
MSF-55
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LOOMIS SAYLES JANUS T. ROWE PRICE
HIGH YIELD BOND MID CAP SMALL CAP GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ---------------- ---------------
INCREASE IN NET ASSETS FROM: FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 3, 1997 TO MARCH 3, 1997 TO MARCH 3, 1997 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997
---------------- ---------------- ---------------
<S> <C> <C> <C>
OPERATIONS: Net investment income...................... $ 918,473 $ 40,370 $ 2,812
Net realized gain/(loss) from
investment and foreign currency
transactions............................. 325,936 (591,976) (426,436)
Unrealized appreciation/
(depreciation) of investments and
foreign currency holdings................ (1,078,040) 10,847,186 5,049,772
---------------- ---------------- ---------------
Net increase in net assets resulting
from operations.......................... 166,369 10,295,580 4,626,148
---------------- ---------------- ---------------
DISTRIBUTIONS Net investment income...................... (919,145) (71,815) (10,155)
TO SHAREHOLDERS: Net realized gain from investment
transactions............................. (317,080) (335,084) --
---------------- ---------------- ---------------
Total Distributions (Note 4)............... (1,236,225) (406,899) (10,155)
---------------- ---------------- ---------------
CAPITAL SHARE Net proceeds from sale of shares........... 29,791,455 93,684,756 107,739,742
TRANSACTIONS: Net asset value of shares issued to
shareholders in reinvestment of
distributions............................ 1,236,225 406,899 10,155
Shares redeemed............................ (2,154,158) (128,695) (18,345,884)
---------------- ---------------- ---------------
Net Capital Stock Transactions
(Note 9)................................. 28,873,522 93,962,960 89,404,013
---------------- ---------------- ---------------
NET INCREASE IN
NET ASSETS............................... 27,803,666 103,851,641 94,020,006
NET ASSETS: Beginning of period............ -- -- --
---------------- ---------------- ---------------
NET ASSETS: End of period.................. $27,803,666 $103,851,641 $ 94,020,006
================ ================ ===============
<CAPTION>
SCUDDER
GLOBAL EQUITY
PORTFOLIO
----------------
INCREASE IN NET ASSETS FROM: FOR THE PERIOD
MARCH 3, 1997 TO
DECEMBER 31,
1997
----------------
<S> <C>
OPERATIONS: Net investment income...................... $ 559,500
Net realized gain/(loss) from
investment and foreign currency
transactions............................. (37,763)
Unrealized appreciation/
(depreciation) of investments and
foreign currency holdings................ 1,942,819
----------------
Net increase in net assets resulting
from operations.......................... 2,464,556
----------------
DISTRIBUTIONS Net investment income...................... (562,955)
TO SHAREHOLDERS: Net realized gain from investment
transactions............................. (80,927)
----------------
Total Distributions (Note 4)............... (643,882)
----------------
CAPITAL SHARE Net proceeds from sale of shares........... 63,644,896
TRANSACTIONS: Net asset value of shares issued to
shareholders in reinvestment of
distributions............................ 643,882
Shares redeemed............................ (5,397,310)
----------------
Net Capital Stock Transactions
(Note 9)................................. 58,891,468
----------------
NET INCREASE IN
NET ASSETS............................... 60,712,142
NET ASSETS: Beginning of period............ --
----------------
NET ASSETS: End of period.................. $ 60,712,142
================
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
MSF-56
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH GROWTH PORTFOLIO
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period..................... $ 30.51 $ 27.56 $ 21.81 $ 23.27 $ 21.72
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
- ----------------------
Net investment income.................................... 0.44 0.36 0.35 0.30 0.28
Net realized and unrealized gain/(loss).................. 7.72 5.78 6.83 (1.06) 3.24
---------- ---------- ---------- ---------- ----------
Total From Investment Operations...................... 8.16 6.14 7.18 (0.76) 3.52
---------- ---------- ---------- ---------- ----------
Less Distributions:
- -------------------
Dividends from net investment income..................... (0.44) (0.36) (0.35) (0.30) (0.28)
Distributions from net realized capital gains............ (6.31) (2.83) (1.08) (0.40) (1.69)
---------- ---------- ---------- ---------- ----------
Total Distributions................................... (6.75) (3.19) (1.43) (0.70) (1.97)
---------- ---------- ---------- ---------- ----------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period........................... $ 31.92 $ 30.51 $ 27.56 $ 21.81 $ 23.27
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return............................................. 28.36% 22.18% 33.14% (3.25)% 14.40%
Supplemental Data/Significant Ratios:
- -------------------------------------
Net assets at end of period (000's)...................... $2,349,062 $1,597,728 $1,094,751 $ 746,433 $ 640,413
Operating expenses to average net assets................. 0.43% 0.29% 0.31% 0.32% 0.28%
Net investment income to average net assets.............. 1.37% 1.29% 1.46% 1.40% 1.19%
Portfolio turnover (1)................................... 82.81% 93.05% 45.52% 57.27% 66.27%
Average broker commission rate (2)....................... $ 0.0590 $ 0.0578 -- -- --
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of securities (excluding short-term
securities) for the year ended December 31, 1997 amounted to
$1,726,435,425 and $1,541,608,452, respectively.
(2) Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See Notes to Financial Statements.
MSF-57
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH INCOME PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period..................... $ 12.36 $ 12.73 $ 11.32 $ 12.59 $ 12.22
- -----------------------------------------------------------------------------------------------------------------------------
Investment Operations:
- ----------------------
Net investment income.................................... 0.83 0.82 0.83 0.91 0.83
Net realized and unrealized gain/(loss).................. 0.38 (0.36) 1.38 (1.31) 0.86
-------- -------- -------- -------- --------
Total From Investment Operations...................... 1.21 0.46 2.21 (0.40) 1.69
-------- -------- -------- -------- --------
Less Distributions:
- -------------------
Dividends from net investment income..................... (0.87) (0.81) (0.80) (0.87) (0.88)
Distributions from net realized capital gains............ (0.04) (0.02) -- -- (0.44)
-------- -------- -------- -------- --------
Total Distributions................................... (0.91) (0.83) (0.80) (0.87) (1.32)
-------- -------- -------- -------- --------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period........................... $ 12.66 $ 12.36 $ 12.73 $ 11.32 $ 12.59
- -----------------------------------------------------------------------------------------------------------------------------
Total Return............................................. 9.83% 3.60% 19.55% (3.15)% 11.36%
Supplemental Data/Significant Ratios:
- -------------------------------------
Net assets at end of period (000's)...................... $412,191 $383,395 $349,913 $275,659 $299,976
Operating expenses to average net assets................. 0.38% 0.32% 0.34% 0.35% 0.32%
Net investment income to average net assets.............. 6.57% 6.64% 7.01% 7.02% 6.39%
Portfolio turnover (1)................................... 121.92% 92.90% 102.88% 141.15% 136.98%
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of securities (excluding short-term
securities) for the year ended December 31, 1997 amounted to $470,696,082
and $451,405,517, respectively.
See Notes to Financial Statements.
MSF-58
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH INCOME PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period..................... $ 10.44 $ 10.45 $ 10.48 $ 10.49 $ 10.52
- -----------------------------------------------------------------------------------------------------------------------------
Investment Operations:
- ----------------------
Net investment income.................................... 0.54 0.53 0.59 0.40 0.28
-------- -------- -------- -------- --------
Total From Investment Operations...................... 0.54 0.53 0.59 0.40 0.28
-------- -------- -------- -------- --------
Less Distributions:
- -------------------
Dividends from net investment income..................... (0.60) (0.54) (0.62) (0.41) (0.31)
-------- -------- -------- -------- --------
Total Distributions................................... (0.60) (0.54) (0.62) (0.41) (0.31)
-------- -------- -------- -------- --------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period........................... $ 10.38 $ 10.44 $ 10.45 $ 10.48 $ 10.49
- -----------------------------------------------------------------------------------------------------------------------------
Total Return............................................. 5.21% 5.01% 5.59% 3.85% 2.90%
Supplemental Data/Significant Ratios:
- -------------------------------------
Net assets at end of period (000's)...................... $ 39,480 $ 41,637 $ 40,456 $ 39,961 $ 44,321
Operating expenses to average net assets................. 0.49% 0.43% 0.49% 0.44% 0.38%
Net investment income to average net assets.............. 5.08% 4.92% 5.39% 3.76% 2.85%
</TABLE>
________________________________________________________________________________
Note:
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.
MSF-59
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period..................... $ 16.67 $ 15.95 $ 13.40 $ 14.41 $ 13.58
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
- ----------------------
Net investment income.................................... 0.60 0.55 0.59 0.51 0.46
Net realized and unrealized gain/(loss).................. 2.71 1.77 3.02 (0.95) 1.58
---------- ---------- ---------- ---------- ----------
Total From Investment Operations...................... 3.31 2.32 3.61 (0.44) 2.04
---------- ---------- ---------- ---------- ----------
Less Distributions:
- -------------------
Dividends from net investment income..................... (0.60) (0.53) (0.58) (0.50) (0.54)
Distributions from net realized capital gains............ (2.40) (1.07) (0.48) (0.07) (0.67)
---------- ---------- ---------- ---------- ----------
Total Distributions................................... (3.00) (1.60) (1.06) (0.57) (1.21)
---------- ---------- ---------- ---------- ----------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period........................... $ 16.98 $ 16.67 $ 15.95 $ 13.40 $ 14.41
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return............................................. 20.58% 14.52% 27.03% (3.06)% 12.75%
Supplemental Data/Significant Ratios:
- -------------------------------------
Net assets at end of period (000's)...................... $1,982,232 $1,448,841 $1,114,834 $ 892,826 $ 743,798
Operating expenses to average net assets................. 0.40% 0.29% 0.31% 0.32% 0.29%
Net investment income to average net assets.............. 3.50% 3.38% 3.92% 3.66% 3.16%
Portfolio turnover (1)................................... 114.79% 91.07% 79.29% 96.49% 95.84%
Average broker commission rate (2)....................... $ 0.0590 $ 0.0578 -- -- --
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of securities (excluding short-term
securities) for the year ended December 31, 1997 amounted to
$1,901,224,776 and $1,701,514,366 respectively.
(2) Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See Notes to Financial Statements.
MSF-60
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH AGGRESSIVE GROWTH PORTFOLIO
-----------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period..................... $ 27.11 $ 25.87 $ 22.05 $ 22.54 $ 19.52
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
- ----------------------
Net investment income/(loss)............................. (0.03) (0.02) (0.01) 0.05 0.04
Net realized and unrealized gain/(loss).................. 1.67 2.01 6.50 (0.48) 5.06
---------- ---------- ---------- ---------- ----------
Total From Investment Operations...................... 1.64 1.99 6.49 (0.43) 5.10
---------- ---------- ---------- ---------- ----------
Less Distributions:
- -------------------
Dividends from net investment income..................... -- -- -- (0.05) (0.06)
Distributions from net realized capital gains............ (1.14) (0.75) (2.67) (0.01) (2.02)
---------- ---------- ---------- ---------- ----------
Total Distributions................................... (1.14) (0.75) (2.67) (0.06) (2.08)
---------- ---------- ---------- ---------- ----------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period........................... $ 27.61 $ 27.11 $ 25.87 $ 22.05 $ 22.54
- ----------------------------------
- ------------------------------------------------------------------------------------------------
Total Return............................................. 6.67% 7.72% 29.50% (1.88)% 22.63%
Supplemental Data/Significant Ratios:
- -------------------------------------
Net assets at end of period (000's)...................... $1,391,956 $1,321,849 $ 958,915 $ 590,047 $ 387,949
Operating expenses to average net assets................. 0.81% 0.79% 0.81% 0.82% 0.79%
Net investment income/(loss) to average net assets....... (0.10)% (0.11)% (0.06)% 0.24% 0.18%
Portfolio turnover (1)................................... 219.08% 221.23% 255.83% 186.52% 120.82%
Average broker commission rate (2)....................... $ 0.0567 $ 0.0576 -- -- --
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of securities (excluding short-term
securities) for the year ended December 31, 1997 amounted to
$2,843,460,476 and $2,804,444,982, respectively.
(2) Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See Notes to Financial Statements.
MSF-61
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
METLIFE STOCK INDEX PORTFOLIO
-----------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period....................... $ 22.23 $ 18.56 $ 13.87 $ 14.25 $ 13.27
- -------------------------------------------------------------------------------------------------------------------------
Investment Operations:
----------------------
Net investment income...................................... 0.34 0.33 0.32 0.33 0.35
Net realized and unrealized gain/(loss).................... 6.79 3.88 4.79 (0.17) 0.98
---------- ---------- -------- -------- --------
Total From Investment Operations........................ 7.13 4.21 5.11 0.16 1.33
---------- ---------- -------- -------- --------
Less Distributions:
-------------------
Dividends from net investment income....................... (0.34) (0.33) (0.32) (0.32) (0.35)
Distributions from net realized capital gains.............. (0.24) (0.21) (0.10) (0.22) --
---------- ---------- -------- -------- --------
Total Distributions..................................... (0.58) (0.54) (0.42) (0.54) (0.35)
---------- ---------- -------- -------- --------
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period............................. $ 28.78 $ 22.23 $ 18.56 $ 13.87 $ 14.25
- -------------------------------------------------------------------------------------------------------------------------
Total Return............................................... 32.19% 22.66% 36.87% 1.18% 9.54%
Supplemental Data/Significant Ratios:
-------------------------------------
Net assets at end of period (000's)........................ $2,020,480 $1,122,297 $635,823 $363,001 $282,700
Operating expenses to average net assets................... 0.33% 0.30% 0.32% 0.33% 0.32%
Net investment income to average net assets................ 1.47% 1.91% 2.22% 2.51% 2.51%
Portfolio turnover (1)..................................... 10.69% 11.48% 6.35% 6.66% 13.99%
Average broker commission rate (2)......................... $ 0.0201 $ 0.0204 -- -- --
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio
securities owned during the period. Securities with a maturity or
expiration date at the time of acquisition of one year or less are
excluded from the calculation. Purchases and sales of securities
(excluding short-term securities) for the year ended December 31, 1997
amounted to $658,470,953 and $167,841,221, respectively.
(2) Total brokerage commissions paid on purchases and sales of portfolio
securites for the period divided by the total number of related shares
purchased and sold.
See Notes to Financial Statements.
MSF-62
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
STATE STREET RESEARCH INTERNATIONAL STOCK PORTFOLIO
-------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE: Beginning of period................ $ 11.95 $ 12.29 $ 12.30 $ 12.33 $ 8.63
- -------------------------------------------------------------------------------------------------------------------------
Investment Operations:
----------------------
Net investment income.............................. 0.10 0.07 0.03 0.08 0.02
Net realized and unrealized gain (loss)............ (0.38) (0.28) 0.07 0.54 4.52
-------- -------- -------- -------- ------------
Total From Investment Operations................ (0.28) (0.21) 0.10 0.62 4.54
-------- -------- -------- -------- ------------
Less Distributions:
-------------------
Dividends from net investment income............... -- -- (0.04) -- (0.26)
Distributions from net realized capital gains...... -- (0.13) (0.07) (0.65) (0.58)
-------- -------- -------- -------- ------------
Total Distributions............................. -- (0.13) (0.11) (0.65) (0.84)
-------- -------- -------- -------- ------------
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period..................... $ 11.67 $ 11.95 $ 12.29 $ 12.30 $ 12.33
- -------------------------------------------------------------------------------------------------------------------------
Total Return....................................... (2.34)% (1.77)% 0.84% 5.08% 47.76%
Supplemental Data/Significant Ratios:
-------------------------------------
Net assets at end of period (000's)................ $ 267,089 $303,826 $297,461 $272,952 $120,781
Net expenses to average net assets (Note 3)........ 1.03% 0.97% 1.01% 1.04% 1.14%
Operating expenses to average net assets
before voluntary expense reimbursements (Note 3).. N/A N/A N/A N/A 1.15%
Net investment income to average net assets........ 0.77% 0.56% 0.21% 0.80% 0.15%
Net investment income to average net assets
before voluntary expense reimbursements (Note 3).. N/A N/A N/A N/A 0.15%
Portfolio turnover (1)............................. 182.11% 116.67% 86.24% 65.84% 88.90%
Average broker commission rate (2)................. $ 0.0039 $ 0.0037 -- -- --
</TABLE>
________________________________________________________________________________
Notes:
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.
(1) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio
securities owned during the period. Securities with a maturity or
expiration date at the time of acquisition of one year or less are
excluded from the calculation. Purchases and sales of securities
(excluding short-term securities) for the year ended December 31, 1997
amounted to $533,671,993 and $565,013,378, respectively.
(2) Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed
as a percentage of transactions because of the lower per-share prices of
many non-U.S. securities.
See Notes to Financial Statements.
MSF-63
<PAGE>
METROPOLITAN SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
LOOMIS SAYLES T. ROWE PRICE SCUDDER
HIGH YIELD JANUS SMALL CAP GLOBAL
BOND MID CAP GROWTH EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ---------- ------------- --------------
FOR THE PERIOD MARCH 3, 1997 TO DECEMBER 31, 1997
-------------------------------------------------------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: Beginning of period................................ $ 10.00 $ 10.00 $ 10.00 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
---------------------
Net investment income............................................... 0.35 0.01 -- 0.10
Net realized and unrealized gain/(loss)............................. 0.26 2.81 1.88 0.86
------- ------- ------ -------
Total From Investment Operations................................. 0.61 2.82 1.88 0.96
------- ------- ------ -------
Less Distributions:
------------------
Dividends from net investment income................................ (0.35) (0.01) --(4) (0.10)
Distributions from net realized capital gains....................... (0.12) (0.04) -- (0.01)
------- ------- ------ -------
Total Distributions.............................................. (0.47) (0.05) -- (0.11)
------- ------- ------ -------
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period...................................... $ 10.14 $ 12.77 $ 11.88 $ 10.85
-----------------------------------------------------------------------------------------------------------------------------------
Total Return........................................................ 6.18% 28.22% 18.81% 9.62%
Supplemental Data/Significant Ratios:
------------------------------------
Net assets at end of period (000's)................................. $27,804 $103,852 $94,020 $60,712
Net expenses to average net assets (Note 3) (1)..................... 0.83% 0.85% 0.67% 0.78%
Operating expenses to average net assets before voluntary expense
reimbursements (Note 3) (1)........................................ 1.35% 0.99% 0.86% 1.14%
Net investment income to average net assets (1)..................... 7.04% 0.10% 0.01% 1.66%
Net investment income to average net assets before voluntary
expense reimbursements (Note 3) (1)................................ 6.52% (0.04)% (0.19)% 1.30%
Portfolio turnover (2).............................................. 39.26% 74.70% 13.45% 36.04%
Average broker commission rate (3).................................. N/A $ 0.0352 $0.0255 $0.0402
</TABLE>
- --------------------------------------------------------------------------------
Notes:
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.
(1) Ratios for the ten months ended December 31, 1997 have been determined on
annualized operating results for the period. Twelve-month results may be
different.
(2) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of securities (excluding short-term
securities) for December 31, 1997 amounted to: $32,284,474 and $5,809,643
for the Loomis Sayles High Yield Bond Portfolio, $121,092,374 and
$32,142,353 for the Janus Mid Cap Portfolio, $93,191,967 and $5,832,933
for the T. Rowe Price Small Cap Growth Portfolio, $66,739,114 and
$12,502,673 for the Scudder Global Equity Portfolio, respectively.
(3) Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
(4) Less than $.005 per share.
See Notes to Financial Statements.
MSF-64
<PAGE>
METROPOLITAN SERIES FUND, INC.
Notes to Financial Statements December 31, 1997
- --------------------------------------------------------------------------------
1. SIGNIFICANT The Metropolitan Series Fund, Inc. ("Fund") is registered
ACCOUNTING under the Investment Company Act of 1940 as an open end
POLICIES investment company. All of the portfolios of the Fund
are diversified as defined under securities laws. The
following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity
with generally accepted accounting principles.
----------------------------------------------------------
A. INVESTMENT SECURITY VALUATION: Portfolio securities that
are traded on domestic stock exchanges are valued at the
last price as of the close of business on the day the
securities are being valued, or, lacking any sales, at the
mean between closing bid and asked prices (except for the
Loomis Sayles High Yield Portfolio, which in the latter
case would value such securities at the last bid price).
Securities trading primarily on non-domestic exchanges are
valued at the preceding closing price on the exchange
where it primarily trades (or, in the case of the Loomis
Sayles High Yield Bond and Scudder Global Equity
Portfolios, the last sale). A security that is listed or
traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary
market for that security by the Board of Directors or its
delegates. If no closing price is available, then such
securities are valued by using the mean between the last
current bid and asked prices or, second, by using the last
available closing price (except for the Scudder Global
Equity Portfolio which second values such securities at
the last current bid, and third by using the last
available price). Domestic securities traded in the over-
the-counter market are valued at the mean between the bid
and asked prices or yield equivalent as obtained from two
or more dealers that make markets in the securities
(except for the Loomis Sayles High Yield Bond Portfolio,
which, in the latter case, would value such security at
the last bid price; or the Scudder Global Equity Portfolio
which would value such security first at the last sale,
and second at the bid price). All non-U.S. securities
traded in the over-the-counter securities market are
valued at the last sale quote, if market quotations are
available, or the last closing bid price, if there is no
active trading in a particular security for a given day.
Where market quotations are not readily available for such
non-domestic over-the-counter securities, then such
securities will be valued in good faith by a method that
the Board of Directors, or its delegates, believe
accurately reflects fair value. Portfolio securities which
are traded both in the over-the-counter market and on a
stock exchange are valued according to the broadest and
most representative market, and it is expected that for
debt securities this ordinarily will be the over-the-
counter market. Securities and assets for which market
quotations are not readily available (e.g. certain long-
term bonds and notes) are valued at fair value as
determined in good faith by or under the direction of the
Board of Directors of the Fund, including valuations
furnished by a pricing service retained for this purpose
and typically utilized by other institutional-sized
trading organizations. Forward foreign currency exchange
contracts are valued based on the closing prices of the
forward currency contract rates in the London foreign
exchange markets on a daily basis as provided by a
reliable bank or dealer. Short-term instruments with a
remaining maturity of sixty days or less are valued
utilizing the amortized cost method of valuation. If for
any reason the fair value of any security is not fairly
reflected by such method, such security will be valued by
the same methods as securities having a maturity of more
than sixty days.
Options, whether on securities, indices, or futures
contracts, are valued at the last sales price available as
of the close of business on the day of valuation or, if no
sale, at the mean between the bid and asked prices.
Options on currencies are valued at the spot price each
day. As a general matter, futures contracts are marked-to-
market daily. The value of futures contracts will be the
sum of the margin deposit plus or minus the difference
between the value of the futures contract on each day the
net asset value is calculated and the value on the date
the futures contract originated, value being that
established on a recognized commodity exchange, or by
reference to other customary sources, with gain or loss
being realized when the futures contract closes or
expires.
----------------------------------------------------------
B. INVESTMENT SECURITY TRANSACTIONS: Security transactions
are recorded on the trade date. Securities denominated in
foreign currencies are translated at exchange rates
prevailing on the respective dates traded. Dividend income
is recorded on the ex-dividend date or, for certain
foreign securities, when notified; interest income is
accrued as earned. Transactions denominated in foreign
currencies are recorded at the rate prevailing when earned
or incurred. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on
the identified cost basis, which is the same basis used
for federal income tax purposes. Asset and liability
accounts that are denominated in foreign currencies are
adjusted to reflect current exchange rates prevailing on
the respective dates traded.
----------------------------------------------------------
C. FEDERAL INCOME TAXES: It is the Fund's policy to comply
with the requirements of the Internal Revenue Code and
regulations thereunder applicable to regulated investment
companies and to distribute all of its taxable income to
shareholders. Therefore, no Federal income tax provision
is required. At December 31, 1997, the State Street
Research Income, State Street Research International
Stock, and T. Rowe Price Small Cap Growth Portfolios had
available for federal income tax purposes unused capital
loss carryovers of approximately $29,822, $7,097,000, and
$69,489, respectively, which will expire on December 31,
2005, on December 31, 2004, and on December 31, 2005,
respectively.
----------------------------------------------------------
D. RETURN OF CAPITAL DISTRIBUTIONS: The Fund distributes all
of its taxable income, both net realized gains and net
investment income, to shareholders. Effective January 1,
1994 the Fund adopted Statement of Position 93-2:
Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies. As a
result, the Fund changed the classification of
distributions to shareholders to better disclose the
differences between financial statement amounts and
distributions determined in accordance with income tax
regulations.
The State Street Research Aggressive Growth Portfolio
incurred net investment losses of $1,338,007 during 1996
and $1,659,985 during 1997, which has been reclassified to
paid-in-capital at December 31, 1996 and December 31,
1997, respectively.
----------------------------------------------------------
E. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: A forward
foreign currency exchange contract is an agreement between
two parties to buy or sell a specific currency for a set
price on a future date. The Fund may enter into forward
foreign currency exchange contracts to hedge security
transactions on holdings denominated in a foreign
currency. Should foreign currency exchange rates move
unexpectedly, the Fund may not achieve the anticipated
benefits of the forward foreign currency exchange
contracts and may realize a loss. The use of forward
foreign currency exchange contracts involves the risk of
imperfect correlation in movements in the price of the
underlying hedged assets and foreign currency exchange
rates. During the period that a contract is open, changes
in the value of the contract are recognized as an
unrealized gain or loss by "marking to market" on a daily
basis. A realized gain or loss will be recognized when a
contract is completed or canceled.
----------------------------------------------------------
MSF-65
<PAGE>
METROPOLITAN SERIES FUND, INC.
Notes to Financial Statements December 31, 1997 - (Continued)
- --------------------------------------------------------------------------------
1. SIGNIFICANT F. REPURCHASE AGREEMENTS: The Fund requires the custodian
ACCOUNTING to take possession, to have legally segregated in the
POLICIES- Federal Reserve Book Entry System, or to have segregated
(CONT.) within the custodian's vault, all securities held as
collateral for repurchase agreements. The market value of
the underlying securities is required to be at least 102%
of the resale price at the time of purchase. If the seller
of the agreement defaults, and the value of the collateral
declines, or if the seller enters an insolvency
proceeding, realization of the value of the collateral by
the Fund may be delayed or limited.
----------------------------------------------------------
G. ESTIMATES AND ASSUMPTIONS: The preparation of financial
statements in conformity with generally accepted
accounting principals requires management to make
estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent
assets and liabilities as of the date of the financial
statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ
from those estimates.
- --------------------------------------------------------------------------------
2. RESTRICTED The State Street Research Income Portfolio holds thirteen
AND ILLIQUID securities, the State Street Research Diversified
SECURITIES Portfolio holds sixteen securities, the State Street
Research International Stock Portfolio holds five
securities, the Loomis Sayles High Yield Bond Portfolio
holds twenty-three securities, and the T. Rowe Price
Portfolio holds one security that were purchased in
private placement transactions. These securities may be
resold in transactions exempt from registration or to the
public if the securities are registered. The sale of these
securities may involve lengthy negotiations and additional
expense. These constraints may affect the security's
marketability, and therefore hinder prompt disposal at an
acceptable price. The Fund intends to invest no more than
15% of net assets in illiquid and restricted securities,
except for the State Street Research Money Market
Portfolio and the Scudder Global Equity Portfolio where
the restriction is 10% of net assets. Restricted
securities (including Rule 144A issues) held at December
31, 1997 are footnoted at the end of each applicable
Portfolio's schedule of investments.
- --------------------------------------------------------------------------------
3. EXPENSES A. INVESTMENT MANAGEMENT AGREEMENTS: The Fund has entered
into investment management agreements with Metropolitan
Life. For providing investment management services to the
Fund, Metropolitan Life receives monthly compensation at
the annual rate of: 0.25% of the average daily net assets
for State Street Research Money Market Portfolio and
MetLife Stock Index Portfolio; and .70% of the average
daily net assets for Loomis Sayles High Yield Bond
Portfolio. For providing investment management services to
the State Street Research Growth Portfolio, Metropolitan
Life receives monthly compensation from the Portfolio at
an annual rate of .55% of the average daily value of the
aggregate net assets of the Portfolio up to $500 million,
.50% of such assets on the next $500 million, and .45% of
such assets on amounts in excess of $1 billion. For
providing investment management services to the State
Street Research Income Portfolio, Metropolitan Life
receives monthly compensation from the Portfolio at an
annual rate of .35% of the average daily value of the
aggregate net assets of the Portfolio up to $250 million,
.30% of such assets on the next $250 million, and .25% of
such assets on amounts in excess of $500 million. For
providing investment management services to the State
Street Research Diversified Portfolio, Metropolitan Life
receives monthly compensation from the Portfolio at an
annual rate of .50% of the average daily value of the
aggregate net assets of the Portfolio up to $500 million,
.45% of such assets on the next $500 million, and .40% of
such assets on amounts in excess of $1 billion. For
providing investment management services to the State
Street Research Aggressive Growth Portfolio and State
Street Research International Stock Portfolio,
Metropolitan Life receives monthly compensation from the
Portfolio at an annual rate of .75% of the average daily
value of the aggregate net assets of the Portfolio up to
$500 million, .70% of such assets on the next $500
million, and .65% of such assets on amounts in excess of
$1 billion. For providing investment management services
to the Janus Mid Cap Portfolio, Metropolitan Life receives
monthly compensation from the Portfolio at an annual rate
of .75% of the average daily value of the aggregate net
assets of the Portfolio up to $100 million, .70% of such
assets on the next $400 million, and .65% of such assets
on amounts in excess of $500 million. For providing
investment management services to the T. Rowe Price Small
Cap Growth Portfolio, Metropolitan Life receives monthly
compensation from the Portfolio at an annual rate of .55%
of the average daily value of the aggregate net assets of
the Portfolio up to $100 million, .50% of such assets on
the next $300 million, and .45% of such assets on amounts
in excess of $400 million. For providing investment
management services to the Scudder Global Equity
Portfolio, Metropolitan Life receives monthly compensation
from the Portfolio at an annual rate of .90% of the
average daily value of the aggregate net assets of the
Portfolio up to $50 million, .55% of such assets on the
next $50 million, .50% of such assets on the next $400
million, and .475% of such assets on amounts in excess of
$500 million.
The Fund and Metropolitan Life have entered into various
sub-investment management agreements. State Street
Research & Management Company, a subsidiary of
Metropolitan Life, is compensated to provide sub-
investment management services for the State Street
Research Growth, State Street Research Income, State
Street Research Money Market, State Street Research
Diversified, State Street Research Aggressive Growth, and
the State Street Research International Stock Portfolios.
GFM International Investors Limited, a subsidiary of
Metropolitan Life, is compensated to provide sub-sub-
investment management services for the State Street
Research International Stock Portfolio. Loomis, Sayles &
Company, L.P., whose general partner is indirectly owned
by Metropolitan Life, is compensated to provide sub-
investment management services for the Loomis Sayles High
Yield Bond Portfolio. Janus Capital Corporation is
compensated to provide sub-investment management services
for the Janus Mid Cap Portfolio. T. Rowe Price Associates,
Inc. is compensated to provide sub-investment management
services for the T. Rowe Price Small Cap Growth Portfolio.
Scudder Kemper Investments, Inc. is compensated to provide
sub-investment management services for the Scudder Global
Equity Portfolio.
----------------------------------------------------------
B. INVESTMENT MANAGEMENT FEE WAIVER: Metropolitan Life has
agreed to waive a portion of its investment management fee
for the Scudder Global Equity Portfolio during the first
year of the Portfolio's operations. For the first six
months, the waiver equaled .35% of the average daily value
of the aggregate net assets of the Portfolio up to $50
million, .175% of such assets on the next $50 million,
.15% of such assets on the next $400 million and .1375% of
such assets on amounts in excess of $500 million. During
the second six months of the Portfolio's operations, such
waiver of the investment management fee is equal to .175%
of assets up to $50 million, .0875% of assets on the next
$50 million, .075% of assets on the next $400 million and
.06875% of such assets in excess of $500 million.
----------------------------------------------------------
MSF-66
<PAGE>
METROPOLITAN SERIES FUND, INC.
Notes to Financial Statements December 31, 1997 - (Continued)
- --------------------------------------------------------------------------------
3. EXPENSES- C. SUBSIDIZATION OF PORTFOLIOS: Metropolitan Life has agreed
(CONT.) to subsidize all expenses, excluding those listed below,
in excess of .20% of the net assets of Loomis Sayles High
Yield Bond Portfolio, Janus Mid Cap Portfolio, T. Rowe
Price Small Cap Growth Portfolio, and Scudder Global
Equity Portfolio. Subsidization will continue until either
each Portfolio's total net assets are at least $100
million, or March 2, 1999, whichever is earlier. At
December 31, 1997 Janus Mid Cap Portfolio exceeded the
$100 million threshold, and subsidization ceased. Expenses
excluded from subsidization are: investment management
fees payable to Metropolitan Life, brokerage commissions
on portfolio transactions (including any other direct
costs related to the acquisition, disposition, lending or
borrowing of portfolio investments), taxes payable by the
Fund, interest and other costs related to borrowings by
the Fund, and any extraordinary or non-recurring expenses
(such as legal claims and liabilities and litigation costs
and any indemnification related thereto).
Prior to May 16, 1993, Metropolitan Life was obligated to
pay all expenses of each Portfolio of the Fund that was in
operation at that time. Since that date, the Fund has been
obligated to pay all of its own expenses (except as
outlined in the preceding paragraph). However,
Metropolitan Life reserves the right, at its sole
discretion, to pay all or a portion of the expenses of the
Fund or any of its Portfolios, and to terminate such
voluntary payment at any time upon notice to the Board of
Directors and affected shareholders of the Fund.
- --------------------------------------------------------------------------------
4. DIVIDEND The Fund distributes, at least annually, substantially all
DISTRIBUTIONS net investment income, if any, of each Portfolio, which
will then be reinvested in additional full and fractional
shares of the Portfolio. All net realized long-term or
short-term capital gains of the Fund, if any, are declared
and distributed at least annually to the shareholders of
the Portfolio or Portfolios to which such gains are
attributable.
- --------------------------------------------------------------------------------
5. NEW PORTFOLIOS On March 3, 1997, the Fund commenced operations of four
additional Portfolios: Loomis Sayles High Yield Bond
Portfolio, Janus Mid Cap Portfolio, T. Rowe Price Small
Cap Growth Portfolio, and Scudder Global Equity Portfolio.
Metropolitan Life supplied initial start-up capital of
$22,000,000 to facilitate the operation of these
Portfolios. Metropolitan Life Insurance, therefore,
purchased 200,000 shares of the Loomis Sayles High Yield
Bond Portfolio, 500,000 shares of the Janus Mid Cap
Portfolio, 500,000 shares of the T. Rowe Price Small Cap
Growth Portfolio, and 1,000,000 shares of the Scudder
Global Equity Portfolio, with each Portfolio valued at $10
per share. Subsequently, these Portfolios were made
available for certain contracts. Since October 2, 1997,
Metropolitan Life has gradually redeemed the start-up
capital (including applicable market appreciation) so that
as of December 31, 1997 only 96,831 shares remained in the
Scudder Global Equity Portfolio with a value of
$1,050,614.
- --------------------------------------------------------------------------------
6. PORTFOLIO On March 3, 1997, the names of the Growth Portfolio,
NAME CHANGES Income Portfolio, Money Market Portfolio, Diversified
Portfolio, Aggressive Growth Portfolio, Stock Index
Portfolio, and International Stock Portfolio changed.
These Portfolios were renamed as follows: State Street
Research Growth Portfolio, State Street Research Income
Portfolio, MetLife Money Market Portfolio, State Street
Research Diversified Portfolio, State Street Research
Aggressive Growth Portfolio, MetLife Stock Index
Portfolio, and GFM International Stock Portfolio.
Subsequently, on August 1, 1997, the names of the MetLife
Money Market Portfolio and GFM International Stock
Portfolio were changed to the State Street Research Money
Market Portfolio and the State Street Research
International Stock Portfolio, respectively.
- --------------------------------------------------------------------------------
7. SECURITIES On December 15, 1997, the Fund entered into a securities
LENDING lending arrangement with the Fund's custodian, State
Street Bank and Trust Co. ("the custodian"). Under the
agreement, the custodian is authorized to loan securities
on the Fund's behalf. In exchange, the Fund receives
collateral against the loaned securities. Each Portfolio
receives collateral at least equal to 102% of the market
value of the loaned securities (105% for foreign
securities), at each loan's inception. Collateral must be
maintained at least at 100% of the market value of the
loaned securities for the duration of the loan. The
collateral is invested in the Navigator Securities Lending
Prime Portfolio, which invests in a variety of high
quality U.S. dollar-denominated instruments. The Fund
receives 70% of the annual net income from lending
transactions, which is included in interest income of the
respective Portfolios. The Fund bears the risk of any
deficiency in the amount of collateral available for
return to a borrower due to a loss in an approved
investment. Portfolios with outstanding loans at December
31, 1997 are footnoted at the end of each applicable
Portfolio's schedule of investments.
- --------------------------------------------------------------------------------
8. NET UNREALIZED As of December 31, 1997, gross unrealized appreciation
APPRECIATION/ and depreciation on investments and foreign currency were
(DEPRECIATION) as follows:
<TABLE>
<CAPTION>
STATE STREET
STATE STREET STATE STREET STATE STREET RESEARCH METLIFE
RESEARCH RESEARCH RESEARCH AGGRESSIVE STOCK
GROWTH INCOME DIVERSIFIED GROWTH INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- --------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation......... $ 395,415,760 $ 10,420,424 $ 202,367,705 $ 262,092,674 $ 699,628,247
Gross Unrealized Depreciation......... (39,543,138) (3,751,189) (25,236,006) (65,192,497) (19,162,107)
----------------- --------------- -------------- -------------- --------------
Net Unrealized Appreciation
(Depreciation) of Investments*........ $ 355,872,622 $ 6,669,235 $ 177,131,699 $ 196,900,177 $ 680,466,140
================= =============== ============== ============== ==============
Aggregate Cost of Securities
(including short-term securities)..... $ 2,016,519,608 $ 399,551,866 $1,802,872,213 $1,185,132,693 $1,335,796,981
================= =============== ============== ============== ==============
</TABLE>
MSF-67
<PAGE>
METROPOLITAN SERIES FUND, INC.
Notes to Financial Statements December 31, 1997 - (Continued)
- --------------------------------------------------------------------------------
8. NET UNREALIZED
APPRECIATION/
(DEPRECIATION)-
(CONT.)
<TABLE>
<CAPTION>
State Street
Research T. Rowe Price
International Loomis Sayles Janus Small Cap Scudder Global
Stock High Yield Bond Mid Cap Growth Equity
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- -------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C>
Gross Unrealized Appreciation.......... $ 26,421,854 $ 883,708 $ 12,614,025 $ 9,989,328 $ 4,823,242
Gross Unrealized Depreciation.......... (30,669,710) (1,961,343) (1,730,311) (4,939,556) (2,880,568)
-------------- -------------- ------------ -------------- --------------
Net Unrealized Appreciation
(Depreciation) of Investments*......... $ (4,247,856) $ (1,077,635) $ 10,883,714 $ 5,049,772 $ 1,942,674
-------------- -------------- ------------ -------------- --------------
Aggregate Cost of Securities
(including short-term securities)...... $ 267,549,270 $ 28,826,155 $ 98,258,908 $ 90,520,596 $ 60,091,984
============== ============== ============ ============== ==============
</TABLE>
*Does not include unrealized gains and (losses) related to
foreign currency contracts and translations of $1,025,720,
$2,134,819, $1,153, $(405), $(36,528), and $145 for the
State Street Research Income, State Street Research
Diversified, State Street Research International Stock,
Loomis Sayles High Yield Bond, Janus Mid Cap, and Scudder
Global Equity Portfolios, respectively. (see Note 10.)
- --------------------------------------------------------------------------------
9. CAPITAL STOCK At December 31, 1997, there were 2,000,000,000 shares of
ACTIVITY $0.01 par value common stock authorized for the Fund. The
shares of common stock are divided into eleven series:
State Street Research Growth, State Street Research
Income, State Street Research Money Market, State Street
Research Diversified, State Street Research Aggressive
Growth, MetLife Stock Index, State Street Research
International Stock, Loomis Sayles High Yield Bond, Janus
Mid Cap, T. Rowe Price Small Cap Growth, and Scudder
Global Equity Portfolios.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
-------------------------------------------------------------------------------------------------------------------------
STATE STREET STATE STREET STATE STREET
STATE STREET STATE STREET RESEARCH STATE STREET RESEARCH METLIFE RESEARCH
RESEARCH RESEARCH MONEY RESEARCH AGGRESSIVE STOCK INTERNATIONAL
GROWTH INCOME MARKET DIVERSIFIED GROWTH INDEX STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------ ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold......... 8,230,850 2,000,510 2,412,286 12,435,452 3,762,075 18,865,897 3,959,141
Shares issued in
reinvestment
of dividends........ 13,468,235 2,191,691 206,604 17,906,235 2,348,065 1,429,601 -----
------------ ------------ ------------ ------------ ------------ ---------- -----------
Total............ 21,699,085 4,192,201 2,618,890 30,341,687 6,110,140 20,295,498 3,959,141
Shares redeemed..... (470,847) (2,665,334) (2,804,937) (545,849) (4,450,372) (579,241) (6,488,877)
Net increase ------------ ------------ ------------ ----------- ------------ ---------- -----------
(decrease)........ 21,228,238 1,526,867 (186,047) 29,795,838 1,659,768 19,716,257 (2,529,736)
============ ============ ============ =========== ============ ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997
--------------------------------------------------------------------------------------------------------------------------
T. ROWE
LOOMIS PRICE SCUDDER
SAYLES HIGH JANUS SMALL CAP GLOBAL
YIELD BOND MID CAP GROWTH EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ -----------
<S> <C> <C> <C>
Shares sold......... 2,822,530 8,109,326 9,488,942 6,023,632
Shares issued in
reinvestment
of dividends........ 122,359 33,002 885 59,518
----------- ----------- ------------ -----------
Total............. 2,944,889 8,142,328 9,489,827 6,083,150
Shares redeemed..... (203,832) (10,081) (1,574,218) (488,028)
----------- ----------- ------------ -----------
Net increase........ 2,741,057 8,132,247 7,915,609 5,595,122
=========== =========== ============ ===========
</TABLE>
MSF-68
<PAGE>
METROPOLITAN SERIES FUND, INC.
Notes to Financial Statements December 31, 1997 - (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
9. CAPITAL STOCK
ACTIVITY-(CONT.) FOR THE YEAR ENDED DECEMBER 31, 1996
----------------------------------------------------------------------------------------------------
STATE STREET STATE STREET STATE STREET
STATE STREET STATE STREET RESEARCH STATE STREET RESEARCH METLIFE RESEARCH
RESEARCH RESEARCH MONEY RESEARCH AGGRESSIVE STOCK INTERNATIONAL
GROWTH INCOME MARKET DIVERSIFIED GROWTH INDEX STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold ........ 8,155,023 3,698,482 1,814,089 10,207,431 11,414,917 16,259,851 3,530,056
Shares issued in
reinvestment
of dividends........ 4,909,141 1,951,255 196,231 7,567,236 1,290,947 1,170,618 261,862
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total........... 13,064,164 5,649,737 2,010,320 17,774,667 12,705,864 17,430,469 3,791,918
Shares redeemed..... (409,835) (2,111,443) (1,893,767) (755,150) (1,025,632) (1,196,783) (2,578,350
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net increase........ 12,654,329 3,538,294 116,553 17,019,517 11,680,232 16,233,686 1,213,568
============ ============ ============ ============ ============ ============ ===========
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10. FOREIGN The fair value of foreign currency contracts is the amount
CURRENCY at which the contracts could be settled based on exchange
TRANSLATIONS rates obtained from dealers. As of December 31, 1997, the
State Street Research Income Portfolio experienced an
unrealized net gain of $1,048,862 based on the following
foreign currency exchange contracts outstanding:
<TABLE>
<CAPTION>
VALUATION UNREALIZED
EXPIRATION CONTRACT AS OF APPRECIATION
SOLD DATE AMOUNT DECEMBER 31, 1997 (DEPRECIATION)
------------------------- -------------- ---------------- --------------------- ------------------
<S> <C> <C> <C> <C>
Australian Dollar 1/23/98 $ 6,501,745 $ 6,151,211 $ 350,534
Australian Dollar 2/13/98 2,947,756 2,767,367 180,389
British Pound Sterling 1/23/98 12,057,310 12,156,868 (99,558)
New Zealand Dollar 1/23/98 7,498,036 6,961,993 536,043
New Zealand Dollar 2/23/98 1,088,196 1,006,742 81,454
-------------- ---------------- -------------
$ 30,093,043 $ 29,044,181 $ 1,048,862
============== ================ =============
Net unrealized appreciation .............. .................... ....................... $ 1,048,862
=============
</TABLE>
The State Street Research Income Portfolio had an
unrealized net translation loss on foreign currency
receivables and payables as follows:
<TABLE>
<CAPTION>
<S> <C>
Net unrealized translation (loss):
Interest Receivables $ (24,560)
Tax Expense Receivables 1,418
------------
Net unrealized translation (loss)............ $ (23,142)
============
</TABLE>
As of December 31, 1997 the State Street Research
Diversified Portfolio experienced an unrealized net gain of
$2,182,853 based on the following foreign currency exchange
contracts outstanding:
<TABLE>
<CAPTION>
VALUATION UNREALIZED
EXPIRATION CONTRACT AS OF APPRECIATION
SOLD DATE AMOUNT DECEMBER 31, 1997 (DEPRECIATION)
------------------------- -------------- ---------------- --------------------- ------------------
<S> <C> <C> <C> <C>
Australian Dollar 1/23/98 $12,348,197 $11,752,056 $ 596,141
Australian Dollar 2/13/98 7,796,836 7,381,602 415,234
British Pound Sterling 1/23/98 25,127,822 25,314,503 (186,681)
New Zealand Dollar 1/23/98 15,722,357 14,571,222 1,151,135
New Zealand Dollar 2/13/98 3,678,547 3,471,523 207,024
--------------- --------------- ---------------
$64,673,759 $62,490,906 $2,182,853
=============== =============== ===============
Net unrealized appreciation ................... ..................... ................ $2,182,853
===============
</TABLE>
The State Street Research Diversified Portfolio had an
unrealized net translation loss on foreign currency
receivables and payables as follows:
<TABLE>
<CAPTION>
<S> <C>
Net unrealized translation (loss):
Interest Receivables $ (50,919)
Tax Expense Payables 2,885
-----------------
Net unrealized translation (loss) ............... $ (48,034)
=================
</TABLE>
The State Street Research International Stock Portfolio had
an unrealized net translation gain on foreign currency
receivables and payables as follows:
<TABLE>
<CAPTION>
<S> <C>
Net unrealized translation gain:
Dividend Receivables $ (4,560)
Dividend Reclaim Receivables (9,646)
Purchase Payables 14,476
Tax Expense Payables 883
----------------
Net unrealized translation gain ................. $ 1,153
=================
</TABLE>
MSF-69
<PAGE>
METROPOLITAN SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 - (Continued)
- --------------------------------------------------------------------------------
10. Foreign The Loomis Sayles High Yield Bond Portfolio had an unrealized
Currency net translation loss on foreign currency receivables and
Translations- payables as follows:
(Cont.) Net unrealized translation (loss):
Interest Receivables $(405)
-----
Net unrealized translation (loss)....... $(405)
=====
As of December 31, 1997 the Janus Mid Cap Portfolio
experienced an unrealized net loss of $36,552 based on the
following foreign currency exchange contracts outstanding:
<TABLE>
<CAPTION>
VALUATION UNREALIZED
EXPIRATION CONTRACT AS OF APPRECIATION
SOLD DATE AMOUNT DECEMBER 31, 1997 (DEPRECIATION)
------------------------------ ------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
British Pound Sterling 2/19/98 $1,263,200 $1,310,889 $(47,689)
British Pound Sterling 2/25/98 1,064,198 1,105,760 (41,562)
British Pound Sterling 2/26/98 1,408,615 1,384,186 24,429
British Pound Sterling 3/04/98 215,595 221,054 (5,459)
British Pound Sterling 5/06/98 3,093,871 3,052,632 41,239
------------------ ------------------ ------------------
$7,045,479 $7,074,521 $(29,042)
================== ================== ==================
PURCHASED
------------------------------
British Pound Sterling 2/25/98 $ 16,890 $ 16,382 $ (508)
British Pound Sterling 2/26/98 228,056 221,054 (7,002)
------------------ ------------------ ------------------
$244,946 $237,436 $ (7,510)
================== ================== ==================
Net unrealized (depreciation).............................................................. $(36,552)
==================
</TABLE>
The Janus Mid Cap Portfolio had an unrealized net translation
gain on foreign currency receivables and payables as follows:
<TABLE>
<S> <C>
Net unrealized translation gain:
Dividend Reclaim Receivables $24
Pending Spot Foreign Exchange Purchases (3,743)
Pending Spot Foreign Exchange Sales 381
Purchase Payables 3,743
Sales Receivables (381)
---------
Net unrealized translation gain................. $24
=========
</TABLE>
As of December 31, 1997 the Scudder Global Equity Portfolio
experienced an unrealized net gain of $818 based on the
following foreign currency exchange contracts outstanding:
<TABLE>
<CAPTION>
VALUATION UNREALIZED
EXPIRATION CONTRACT AS OF APPRECIATION
SOLD DATE AMOUNT DECEMBER 31, 1997 (DEPRECIATION)
------------------------------ ------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Japanese Yen 3/26/98 $1,200,000 $1,199,182 $818
================== ================== ==================
Net unrealized appreciation................................................................ $818
==================
</TABLE>
The Scudder Global Equity Portfolio had an unrealized net
translation loss on foreign currency receivables and payables
as follows:
<TABLE>
<S> <C>
Net unrealized translation (loss):
Dividend Receivables $(840)
Dividend Reclaim Receivables (152)
Interest Receivables 192
Interest Reclaim Receivables 48
Pending Spot Foreign Exchange Purchases (2,349)
Pending Spot Foreign Exchange Sales 661
Purchase Payables 2,348
Sales Receivables (663)
Tax Expense Payables 82
----------
Net unrealized translation (loss)............... $(673)
==========
</TABLE>
<PAGE>
METROPOLITAN SERIES FUND, INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
AS OF FEBRUARY 20, 1998
<TABLE>
<CAPTION>
DIRECTORS: OFFICERS:
- ------------------------------------------------------- --------------------------------------------------------------
<S> <C>
DAVID A. LEVENE--Chairman of the Board and Director DAVID A. LEVENE--Chief Executive Officer
STEVE A. GARBAN--Director CHRISTOPHER P. NICHOLS--President and Chief Operating Officer
JEFFREY J. HODGMAN--Director ELAINE STEVENSON--Vice-President
MALCOLM T. HOPKINS--Director LAWRENCE A. VRANKA--Vice-President
ROBERT A. LAWRENCE--Director BRADFORD W. WHITE--Controller
DEAN O. MORTON--Director JOSEPH M. PANETTA--Treasurer
MICHAEL S. SCOTT MORTON--Director ROBIN WAGNER--Secretary
</TABLE>
<PAGE>
This report has been prepared for the owners and prospective owners of Universal
Life II policies issued by Metropolitan Life Insurance Company and shareholders
of Metropolitan Series Fund, Inc. This report may be distributed only when
preceded or accompanied by the most recent quarterly performance sheet and the
current prospectus for the Universal Life II policy. Please consult the
prospectus for information regarding applicable fees and charges.
If you want more information, please contact your
sales representative.
MSFAnnual ReportULII (0298)
98022BUN (exp0998)MLIC-LD
Date of First Use: 2/27/98
